<PAGE>
Northern Institutional Funds
(formerly The Benchmark Funds)
MONEY MARKET PORTFOLIOS
MAY 31, 1998
Semi-Annual Report
<PAGE>
Effective July 15, 1998, the name of The Benchmark Funds
changed to "Northern Institutional Funds". Although the
former name was in effect as of the date of the
financial statements contained in this Semi-Annual Report
dated May 31, 1998, the new name,
Northern Institutional Funds,
has been used throughout to alleviate confusion.
<PAGE>
Northern Institutional Funds (formerly The Benchmark Funds)
Money Market Portfolios
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Investment Outlook......................................................... 3
Statements of Investments
Investment Abbreviations and Notes....................................... 4
Diversified Assets Portfolio............................................. 5
Government Portfolio..................................................... 9
Government Select Portfolio.............................................. 10
Tax Exempt Portfolio..................................................... 11
Statements of Assets and Liabilities....................................... 16
Statements of Operations................................................... 17
Statements of Changes in Net Assets........................................ 18
Financial Highlights....................................................... 19
Notes to the Financial Statements.......................................... 23
</TABLE>
- --------------------------------------------------------------------------------
1
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
2
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
INVESTMENT OUTLOOK
WHAT HAS CHANGED
The worsening economic crisis in Asia dimmed prospects for global growth.
Troubles in the Far East deepened as Japan's economy entered recession,
pushing the U.S. dollar to an eight-year high against the yen. On the home
front, flight-to-quality trading pushed the yield on the 30-year Treasury to a
21-year low, Congress moved to lower the long-term capital gains holding
period to 12 months, and stocks rebounded to near all-time highs as worries
diminished concerning second quarter earnings.
ECONOMIC OUTLOOK
MODERATE ECONOMIC GROWTH IS EXPECTED TO CONTINUE
Economic growth is slowing to a more moderate pace from its almost boom-like
first quarter performance. For now, this slowdown is concentrated in the
manufacturing sector. Exports to Asia have fallen because of the recession
there. Domestic business equipment spending is slowing in the face of falling
factory capacity utilization and weaker demand. Inventory growth also is
expected to slow because of the rapid accumulation in the first quarter and
General Motors ("GM") strike-related shutdown. More than offsetting these
brakes on economic activity is a vibrant household sector. With unemployment
very low and real incomes rising, consumer spending has remained strong. These
same factors that are contributing to consumer spending, in combination with
low nominal interest rates, are keeping the demand for residential real estate
high. Nonresidential real estate activity is also strong because of rising
rents, increased acquisition costs, and readily available financing. In the
coming months, the weakness in the manufacturing sector is likely to filter
through to other parts of the economy, slowing, but not stalling them.
The Asian economic crisis worsened markedly in recent weeks, so much so that
references to deflationary spirals and Asian depressions have begun to appear
in market analyses and news reports. Japan's economy has entered a recession,
with Hong Kong likely to follow. The second largest economy in Asia, that of
mainland China, has slowed significantly. Although the previously-announced
Japanese fiscal stimulus program, which is only now being implemented, will
stimulate some domestic demand, it remains to be seen if it will be enough to
stabilize the Japanese economy, let alone generate job-creating growth. There
are suggestions that the ruling Japanese political party will recommend
permanent tax cuts in the run-up to the July 12, 1998 parliamentary elections.
Although the Japanese government appears to have a greater urgency to resolve
the bad-loan problems of the banks, a resolution, in and of itself, will have
only a marginally salutary impact on domestic demand. In order to ease the
credit crunch in Japan quickly, the government would have to use public funds
to recapitalize the banking system. After more than eight years of Japan's
"muddling through" its various crises, financial markets are skeptical that
these new policy changes will be implemented in a timely and successful
manner. Meanwhile, the Chinese government is expected to use fiscal and
monetary policies to boost domestic demand rather than devaluing its currency
in an effort to increase exports.
U.S. consumer inflation has started to edge higher in the face of very
strong demand, human capital constraints, and slowing productivity, but
declining import prices continue to act as a governor on inflation. Falling
commodity prices, especially energy prices, also have been a limiting factor
with regard to inflation. The expected moderation in U.S. economic activity
will likely relieve some of the cyclical inflationary pressures. The Federal
Reserve shares this outlook and is likely to keep policy on hold for the
foreseeable future. Making their job even more difficult over the next few
months will be the distortion imparted to reported economic data by the
temporary negative effects from the GM strike. The monetary policymakers are
also aware that the global financial markets are currently very fragile. A
tightening in U.S. monetary policy in this environment would run the risk of
triggering an avalanche in global equity share prices, which, in turn, could
slow the U.S. economy more than desired. With inflation still low, and,
perhaps as important, inflation expectations low, the Federal Reserve believes
that it can be less preemptive now than otherwise would be the case_____July.9,
1998
Shares of Northern Institutional Funds are not bank deposits or obligations
of, or guaranteed, endorsed or otherwise supported by The Northern Trust
Company, its parent company, or its affiliates, and are not Federally insured
or guaranteed by the U.S. Government, Federal Deposit Insurance Corporation,
Federal Reserve Board, or any other governmental agency. Northern
Institutional Money Market Portfolios seek to maintain a net asset value of
$1.00 per unit, but there can be no assurance that they will be able to do so
on a continuous basis.
3
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(Unaudited)
INVESTMENT ABBREVIATIONS AND NOTES:
ADP --Automatic Data Processing
AMBAC--American Municipal Bond Assurance Corp.
BAN --Bond Anticipation Note
BTP --Bankers Trust Partnership
Colld.
--Collateralized
CP --Commercial Paper
FGIC --Financial Guaranty Insurance Corp.
FNMA --Federal National Mortgage Association
FRN --Floating Rate Note
FSA --Financial Security Assurance Corp.
GO --General Obligation
Gtd. --Guaranteed
GNMA --Government National Mortgage Association
HDA --Housing Development Authority
HFA --Housing Finance Authority
IDA --Industrial Development Authority
IDR --Industrial Development Revenue
I.S.D.
--Independent School District
LOC --Letter of Credit
MBIA --Municipal Bond Insurance Association
ML SG--Merrill Lynch/Societe Generale
P-Floats
--Puttable Floating Rate Security
PCR --Pollution Control Revenue
SD --School District
Soc Gen
--Societe Generale
TOB --Tender Option Bond
TRAN --Tax and Revenue Anticipation Note
VRDN --Variable Rate Demand Note
. The percentage shown for each investment category reflects the value of
investments in that category as a percentage of net assets.
. Interest rates represent either the stated coupon rate, annualized yield on
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 date for floating and variable rate securities per SEC rules.
. Amortized cost also represents cost for federal income tax purposes.
. Interest rates are reset daily and interest is payable monthly with respect
to all joint repurchase agreements.
See accompanying notes to financial statements.
4
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Description
- ------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- ------------------------------------------------------
DIVERSIFIED ASSETS PORTFOLIO
<C> <C> <S> <C>
BANK NOTES--2.6%
Bank One, Milwaukee
$17,000 5.600% 01/29/99 $ 16,995
Bayerische
Landesbank
25,000 5.755 08/14/98 25,015
3,000 5.802 08/14/98 3,002
Huntington
National Bank
23,000 5.460 09/22/98 23,017
Morgan Guaranty
Trust Co.
30,000 6.000 06/22/98 29,999
Sun Trust Bank
20,000 5.891 07/14/98 19,999
- ------------------------------------------------------
TOTAL BANK NOTES $ 118,027
- ------------------------------------------------------
CERTIFICATES OF DEPOSIT--10.6%
DOMESTIC DEPOSITORY INSTITUTIONS--4.0%
Bankers Trust New
York Corp.
$50,000 5.460% 07/14/98 $ 50,015
25,000 5.640 01/22/99 24,990
Crestar Bank
20,000 5.570 08/27/98 20,000
5.600 02/02/99 19,998
Huntington
National Bank
16,000 5.460 09/18/98 16,015
Union Bank of
California
49,000 5.720 06/10/98 49,000
----------
180,018
----------
FOREIGN DEPOSITORY INSTITUTIONS--6.6%
Bank Nationale de
Paris, New York
20,000 5.710 02/18/99 19,972
20,000 5.820 03/30/99 19,982
25,000 5.800 04/23/99 24,989
Barclays Bank, New
York
25,000 5.460 06/25/98 25,005
5,000 5.630 02/25/99 4,998
Canadian Imperial
Bank of Commerce,
New York
24,000 5.470 10/21/98 24,036
25,000 5.850 04/28/99 24,976
National
Westminster Bank,
New York
15,000 6.000 06/28/98 14,999
Societe Generale,
New York
15,000 5.740 03/05/99 14,997
2,000 5.805 04/19/99 1,999
15,000 5.810 04/19/99 14,994
18,000 5.540 07/13/98 18,000
45,000 5.610 07/17/98 45,007
40,000 5.640 01/07/99 40,009
----------
293,963
- ------------------------------------------------------
TOTAL CERTIFICATES OF DE-
POSIT $ 473,981
- ------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Description
- -----------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------
<C> <C> <S> <C>
COMMERCIAL PAPER--56.5%
ASSET-BACKED SECURITIES--21.5%
ABC Funding
$12,360 5.553% 06/01/98 $ 12,360
15,000 5.855 06/01/98 15,000
Apreco
12,000 5.598 07/10/98 11,928
18,000 5.598 07/15/98 17,879
Beta Finance Corp.
25,000 5.508 07/14/98 24,840
Certain Funding
Corp.
6,800 5.643 07/23/98 6,745
Clipper
Receivables Co.
40,000 5.544 06/01/98 40,000
Compass
Securitization
9,000 5.577 06/15/98 8,981
15,000 5.576 06/25/98 14,945
8,000 5.586 06/25/98 7,970
20,000 5.604 07/27/98 19,827
11,755 5.639 07/27/98 11,653
47,000 5.629 08/25/98 46,384
Eureka
Securitization,
Inc.
16,250 5.572 07/06/98 16,163
International
Securitization
Corp.
15,000 5.627 06/29/98 14,935
Kitty Hawk Funding
Corp.
6,998 5.601 06/05/98 6,994
13,653 5.612 08/17/98 13,493
10,000 5.643 09/21/98 9,829
KZH Crescent II
Corp.
15,167 5.662 06/09/98 15,148
6,011 5.610 07/08/98 5,977
KZH Holding Corp.
III
4,311 5.603 06/30/98 4,292
KZH IV Corp.
2,424 5.598 06/12/98 2,420
KZH Pamco
3,822 5.640 09/29/98 3,752
KZH Soleil Corp.
3,036 5.638 06/09/98 3,032
13,480 5.644 06/12/98 13,457
6,076 5.644 06/16/98 6,062
13,221 5.614 06/30/98 13,162
5,038 5.626 06/30/98 5,015
10,101 5.630 06/31/98 10,008
Old Line Funding
30,000 5.544 06/01/98 30,000
37,000 5.584 06/24/98 36,868
R.O.S.E., Inc.
55,795 5.629 07/29/98 55,296
10,000 5.639 08/28/98 9,864
SALTS (II) Cayman
Islands Corp.
23,930 5.738 06/18/98 23,930
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------
DIVERSIFIED ASSETS PORTFOLIO--CONTINUED
ASSET-BACKED SECURITIES--Continued
<C> <C> <S> <C>
SALTS (III) Cayman
Islands Corp.
$25,000 6.038% 06/18/98 $ 25,000
90,000 5.725 07/23/98 90,000
Sheffield
Receivables
30,000 5.554 06/01/98 30,000
12,500 5.637 08/25/98 12,336
Thames Asset
Global
Securitization,
Inc.
12,452 5.617 06/23/98 12,409
40,000 5.601 07/13/98 39,741
30,000 5.608 07/15/98 29,797
6,359 5.626 08/11/98 6,289
Trident Capital
Finance, Inc.
30,000 5.544 06/01/98 30,000
60,000 5.572 07/07/98 59,670
Variable Funding
Capital
30,000 5.544 06/01/98 30,000
43,100 5.686 06/05/98 43,073
WCP Funding, Inc.
12,500 5.578 07/13/98 12,420
Windmill Funding
Corp.
1,055 5.551 06/19/98 1,052
Wood Street
Funding Co.
7,592 5.544 06/01/98 7,592
----------
967,588
----------
COMMUNICATIONS--0.8%
GTE Financial
Corp.
10,000 5.571 06/19/98 9,972
GTE Funding, Inc.
25,000 5.648 06/23/98 24,915
----------
34,887
----------
ELECTRICAL SERVICES--0.3%
Duke Capital Corp.
12,500 5.609 07/22/98 12,402
----------
ELECTRONIC AND OTHER ELECTRIC COMPO-
NENTS--3.3%
General Electric
Capital Corp.
100,000 5.753 06/01/98 100,000
50,000 5.558 07/17/98 49,655
----------
149,655
----------
FOOD AND KINDRED SPIRITS-1.0%
Cofco Capital
Corp. (Credit
Suisse LOC)
18,000 5.611 08/06/98 17,817
Deageo PLC
25,000 5.523 07/06/98 24,869
----------
42,686
----------
FOREIGN DEPOSITORY INSTITUTIONS--6.3%
Abbey National
North America
60,000 5.618 06/17/98 59,854
Halifax Building
Society
70,000 5.763 06/16/98 69,837
</TABLE>
<TABLE>
<CAPTION>
Description
- -----------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------
<C> <C> <S> <C>
HSBC Americas,
Inc.
$45,000 5.620% 08/20/98 $ 44,446
LLoyds Bank PLC
60,000 5.508 07/13/98 59,625
Spintab
AB/Swedmortgage
15,210 5.594 07/15/98 15,108
20,790 5.604 07/28/98 20,609
Swedbank, Inc.
15,000 5.574 06/11/98 14,977
----------
284,456
----------
GENERAL MERCHANDISE STORES--1.4%
Sears Roebuck
Acceptance Corp.
62,400 5.554 06/01/98 62,400
----------
INSURANCE CARRIERS--3.3%
AON Corp.
12,015 5.712 06/11/98 11,996
10,000 5.594 06/16/98 9,977
Prudential Funding
Corp.
87,000 5.753 06/01/98 87,000
Special Purpose
Accounts
Receivable
Cooperative Corp.
10,000 5.603 07/13/98 9,935
Torchmark, Inc.
15,000 5.632 06/09/98 14,981
15,000 5.641 06/09/98 14,981
----------
148,870
----------
MEASURING, ANALYZING AND CONTROL IN-
STRUMENTS--2.7%
Xerox Capital
Europe
120,000 5.733 06/01/98 120,000
----------
NONDEPOSITORY BUSINESS CREDIT INSTITU-
TIONS--1.2%
FBA Properties,
Inc. (NationsBank,
Georgia LOC)
4,350 5.649 08/27/98 4,291
Finova Capital
Corp.
3,825 5.625 06/25/98 3,811
19,000 5.626 06/26/98 18,927
20,000 5.588 06/12/98 19,966
Sunkyong America,
Inc. (Credit
Suisse LOC)
8,000 5.566 06/08/98 7,992
----------
54,987
----------
NONDEPOSITORY PERSONAL CREDIT INSTITU-
TIONS--1.1%
Cendant Residen-
tial Mortgage
Trust
12,500 5.607 06/03/98 12,496
Countrywide Home
Loans
18,000 5.564 06/01/98 18,000
Household Finance
Corp.
20,000 5.544 06/01/98 20,000
----------
50,496
----------
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- -----------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------
<C> <C> <S> <C>
PETROLEUM REFINING AND RELATED--1.6%
Atlantic Richfield
Co.
$22,800 5.567% 06/02/98 $ 22,796
50,000 5.569 06/05/98 49,969
----------
72,765
----------
SECURITY AND COMMODITY BROKERS--1.9%
Lehman Brothers
Holding Corp.
60,000 5.600 07/01/98 59,723
Salomon Smith Bar-
ney Holding
Corp., Inc.
25,000 5.571 07/07/98 24,864
----------
84,587
----------
TRANSPORTATION--9.9%
BMW US Capital
Corp.
23,400 5.544 06/01/98 23,400
Chrysler Financial
Corp.
15,000 5.556 06/10/98 14,979
59,000 5.596 07/13/98 58,620
Ford Credit Corp.
30,000 5.569 06/02/98 29,995
20,000 5.569 06/05/98 19,988
25,000 5.582 06/12/98 24,958
25,000 5.613 07/07/98 24,862
15,000 5.511 07/16/98 14,900
10,000 5.601 07/20/98 9,925
25,000 5.554 08/06/98 24,753
General Motors Ac-
ceptance Corp.
10,000 5.627 06/10/98 9,986
10,000 6.000 06/11/98 9,984
10,000 5.623 06/23/98 9,966
30,000 5.742 07/08/98 29,828
25,000 5.655 07/07/98 24,862
5,000 5.599 07/15/98 4,966
15,000 5.608 07/16/98 14,896
15,000 5.612 07/20/98 14,887
10,000 5.612 07/28/98 9,912
20,000 5.588 07/30/98 19,822
15,000 5.566 08/12/98 14,837
12,500 5.566 08/13/98 12,363
15,000 5.670 09/25/98 14,733
10,000 5.645 10/14/98 9,794
----------
447,216
----------
WHOLESALE TRADE-DURABLE GOODS--0.2%
Sinochem American
Holdings, Inc.
10,500 5.581 06/03/98 10,497
- -----------------------------------------
TOTAL COMMERCIAL PAPER $2,543,492
- -----------------------------------------
CORPORATE NOTES--3.3%
Beta Finance
$10,000 6.000% 10/27/98 $ 10,000
60,000 5.563 02/04/99 60,000
</TABLE>
<TABLE>
<CAPTION>
Description
- ---------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- ---------------------------------------------
<C> <C> <S> <C> <C>
Crozer Keystone
Health VRDN
$ 7,600 5.582% 06/03/98 $ 7,600
GE Engine
Receivables 1995-1
Trust FRN
10,619 5.642 06/12/98 10,619
GE Engine
Receivables 1996-1
Trust FRN
34,732 5.642 06/12/98 34,732
Morgan Stanley
Trust Certificates
1996-2 F
26,624 5.748 06/23/98 26,624
- ---------------------------------------------
TOTAL CORPORATE NOTES $ 149,575
- ---------------------------------------------
EURODOLLAR TIME DEPOSITS--
10.7%
Banque Brussels
Lambert, London
$ 75,000 5.750% 06/01/98 $ 75,000
Berliner Handels
Und Frankfurter,
Grand Cayman
Islands
49,949 5.688 06/01/98 49,949
Chase Manhattan
Bank, London
100,000 5.688 06/01/98 100,000
Firstar Bank,
Milwaukee, Grand
Cayman Islands
136,000 5.688 06/01/98 136,000
ING Bank, Grand
Cayman Islands
100,000 5.750 06/01/98 100,000
Svenska
Handlesbanken,
Stockholm
20,000 5.656 06/05/98 20,000
- ---------------------------------------------
TOTAL EURODOLLAR TIME
DEPOSITS $ 480,949
- ---------------------------------------------
GUARANTEED INVESTMENT
CONTRACTS--4.3%
General American
Life Insurance Co.
FRN
$100,000 5.850% 06/23/98 $ 100,000
Integrity Life
Insurance Co. FRN
30,000 5.890 07/01/98 30,000
Transamerica Life
Insurance and
Annuity Co. FRN
35,000 5.646 03/19/99 35,000
30,000 5.656 04/30/99 30,000
- ---------------------------------------------
TOTAL GUARANTEED INVESTMENT
CONTRACTS $ 195,000
- ---------------------------------------------
MUNICIPAL INVESTMENTS--7.9%
City of
Minneapolis-St.
Paul (Minnesota)
Metro Airport GO
Bond
$ 28,930 5.756% 07/01/98 $ 28,930
City of Seattle
(Washington) Ltd.
GO VRDN
46,525 5.450 06/03/98 46,525
Communaute Urbaine
de Lille, Series A
30,000 5.888 08/15/98 30,000
County of Harris
(Texas) Industrial
Develop
10,000 5.600 07/09/98 10,000
County of Los
Angeles
(California)
Pension
Obligation, Series
B
40,000 5.702 06/30/98 40,000
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------
DIVERSIFIED ASSETS PORTFOLIO--CONTINUED
<C> <C> <S> <C>
MUNICIPAL INVESTMENTS--
Continued
County of Kern
(California)
Pension Obligation
$ 18,000 5.756% 08/15/98 $ 18,000
County of Sonoma
(California)
Pension Obligation
22,800 5.756 06/01/98 22,800
Health Insurance
Plan of Greater
New York
17,500 5.550 06/01/98 17,500
Municipal Electric
Authority of
Georgia, Series A
5,000 5.600 06/12/98 5,000
State of New
Jersey Economic
Development
Authority
25,000 5.680 06/01/98 25,000
State of Virginia
Housing
Development
Commonwealth
Mortgage
97,868 5.500 06/01/98 97,868
State of Virginia
Housing
Development
Commonwealth
Mortgage, Series B
3,350 5.500 06/01/98 3,350
Texas Municipal
Power Agency,
Series 1997
10,000 5.600 07/13/98 10,000
- -----------------------------------------------------------
TOTAL MUNICIPAL INVESTMENTS $ 354,973
- -----------------------------------------------------------
U.S. GOVERNMENT
OBLIGATIONS--1.1%
U.S. TREASURY BILLS
$ 50,000 5.286% 02/04/99 $ 48,267
- -----------------------------------------------------------
TOTAL U.S. GOVERNMENT
OBLIGATIONS $ 48,267
- -----------------------------------------------------------
REPURCHASE AGREEMENTS--3.3%
REPURCHASE AGREEMENT--2.2%
UBS Securities
Inc., Dated
5/29/98,
Repurchase Price
$100,046 (U.S.
Government
Securities Colld.)
$100,000 5.510% 06/01/98 $ 100,000
JOINT REPURCHASE AGREEMENT--
1.1%
UBS Securities
Inc., Dated
8/29/97 (U.S.
Government
Securities Colld.)
Accrued Interest
$154
50,000 5.628 06/01/98 50,000
- -----------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS $ 150,000
- -----------------------------------------------------------
TOTAL INVESTMENTS--100.3% $4,514,264
- -----------------------------------------------------------
Liabilities, less other
assets--(0.3)% (14,421)
- -----------------------------------------------------------
NET ASSETS--100.0% $4,499,843
- -----------------------------------------------------------
- -----------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- ---------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- ---------------------------------------------------------------
GOVERNMENT PORTFOLIO
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCIES--54.5%
FANNIE MAE MEDIUM TERM NOTES--3.8%
$ 5,000 5.630% 08/14/98 $ 4,998
46,000 5.380 02/09/99 45,962
----------
50,960
----------
FHLB DISCOUNT NOTE--3.0%
40,531 5.452 06/01/98 40,531
----------
FHLB MEDIUM TERM NOTES--16.8%
67,000 5.720 07/07/98 66,996
82,000 5.715 07/21/98 81,997
17,500 5.710 10/01/98 17,501
7,765 5.690 10/02/98 7,763
10,230 5.792 10/23/98 10,232
10,000 5.775 10/30/98 9,999
20,800 5.520 03/23/99 20,787
13,000 5.500 03/26/99 12,990
----------
228,265
----------
FREDDIE MAC DISCOUNT NOTE--27.3%
370,000 5.553 06/01/98 370,000
----------
SLM HOLDING CORP. MEDIUM TERM NOTES--3.6%
12,000 5.630 08/06/98 11,998
6,000 5.600 08/11/98 5,997
4,475 5.790 09/16/98 4,476
26,000 5.400 02/10/99 25,981
----------
48,452
- ---------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES $ 738,208
- ---------------------------------------------------------------
REPURCHASE AGREEMENTS--48.0%
REPURCHASE AGREEMENTS--44.3%
Chase Manhattan, Inc., Dated 5/29/98,
Repurchase Price $275,127
(U.S. Government Securities Colld.)
$275,000 5.520% 06/01/98 $ 275,000
SBC Warburg, Inc., Dated 5/29/98,
Repurchase Price $325,149
(U.S. Government Securities Colld.)
325,000 5.510 06/01/98 325,000
----------
600,000
----------
</TABLE>
<TABLE>
<CAPTION>
Description
- --------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- --------------------------------------------------------------
<C> <S> <C> <C>
JOINT REPURCHASE AGREEMENT--3.7%
UBS Securities, Inc., Dated 08/29/97,
(U.S. Government Securities Colld.)
Accrued Interest $148
$50,000 5.628% 06/01/98 $ 50,000
- --------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS $ 650,000
- --------------------------------------------------------------
TOTAL INVESTMENTS--102.5% $1,388,208
- --------------------------------------------------------------
Liabilities, less other assets--(2.5)% (33,395)
- --------------------------------------------------------------
NET ASSETS--100.0% $1,354,813
- --------------------------------------------------------------
- --------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------
GOVERNMENT SELECT PORTFOLIO
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCIES--102.0%
FEDERAL FARM CREDIT BANK--1.4%
$ 7,000 5.750% 07/01/98 $ 6,999
12,000 5.700 12/01/98 11,994
----------
18,993
----------
FEDERAL FARM CREDIT BANK DISCOUNT NOTES--
21.3%
9,000 5.395 06/22/98 8,972
19,000 5.407 06/22/98 18,940
4,000 5.396 06/23/98 3,987
79,000 5.407 06/23/98 78,740
35,550 5.428 06/23/98 35,433
62,000 5.397 06/24/98 61,787
26,860 5.407 06/24/98 26,768
28,000 5.398 06/26/98 27,896
20,550 5.413 06/30/98 20,461
----------
282,984
----------
FHLB--21.1%
64,000 5.720 07/07/98 63,997
54,000 5.715 07/21/98 53,999
11,150 5.710 10/01/98 11,151
8,340 5.690 10/02/98 8,338
22,875 5.700 10/23/98 22,870
24,000 5.775 10/30/98 23,999
21,000 5.435 02/02/99 20,975
22,750 5.520 03/23/99 22,736
14,000 5.500 03/26/99 13,989
13,000 5.610 04/08/99 12,990
25,000 5.630 05/05/99 24,974
----------
280,018
----------
FHLB DISCOUNT NOTES--52.8%
218,653 5.452 06/01/98 218,653
92,600 5.419 06/12/98 92,447
44,000 5.413 06/17/98 43,895
13,750 5.423 06/17/98 13,717
34,000 5.403 06/19/98 33,908
18,000 5.427 06/22/98 17,943
116,000 5.411 06/24/98 115,600
91,200 5.418 06/24/98 90,886
73,400 5.411 06/26/98 73,125
----------
700,174
----------
SLM HOLDING CORP.--5.4%
17,000 6.080 08/11/98 16,991
17,000 5.820 09/16/98 17,003
15,500 5.720 11/20/98 15,496
22,000 5.740 12/17/98 21,988
----------
71,478
- -----------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES $1,353,647
- -----------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Description
- --------------------------------------------
Maturity Amortized
Shares Rate Date Cost
- --------------------------------------------
<C> <S> <C> <C>
OTHER INVESTMENT--0.0%
Dreyfus Treasury Prime Cash
Management,
Class A
1,001 -- -- $ 1
- --------------------------------------------
TOTAL OTHER INVESTMENT $ 1
- --------------------------------------------
TOTAL INVESTMENTS--102.0% $1,353,648
- --------------------------------------------
Liabilities, less other as-
sets--(2.0)% (27,505)
- --------------------------------------------
NET ASSETS--100.0% $1,326,143
- --------------------------------------------
- --------------------------------------------
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------------
TAX-EXEMPT PORTFOLIO
MUNICIPAL INVESTMENTS--97.4%
ALABAMA--1.6%
Greenville City IDR VRDN, Series
1992, Allied-Signal Project
(Allied-Signal Inc. Gtd.)
<S> <C> <C> <C>
$ 1,350 3.950% 06/07/98 $ 1,350
Jefferson County Revenue VRDN,
Series A (FGIC Insured)
5,050 4.000 06/07/98 5,050
University of Alabama Hospital
Revenue VRDN,
Series 1997B
3,700 3.950 06/07/98 3,700
--------
10,100
--------
ALASKA--0.6%
Alaska Housing Finance Corp.
VRDN, Series 1994 PT-37,
Merrill P-Floats (Alaska HFA
Colld.)
3,820 3.870 06/01/98 3,820
--------
ARIZONA--1.8%
Maricopa County Community
College Dist. GO VRDN, Series
BTP-29
10,640 3.850 06/07/98 10,640
Maricopa County PCR VRDN,
Arizona Public Service Palo
Verde Project, 1994 F (Bank of
America LOC)
1,000 4.000 06/01/98 1,000
--------
11,640
--------
CALIFORNIA--5.0%
California State GO VRDN, Series
1998 A (MBIA Insured)
1,550 3.800 06/07/98 1,550
Freemont City Unified School
District TRAN, Series 1997/98
4,600 4.250 06/30/98 4,601
Irvine County Ranch Water
District VRDN, Series 1993 B,
Districts 2, 102, 103, & 206
(Morgan Guaranty Trust Co. LOC)
7,500 3.750 06/01/98 7,500
Los Angeles County TRAN, Series
A
5,000 4.500 06/30/98 5,003
Riverside County TRAN, Series A
5,000 4.500 06/30/98 5,002
San Marcos Public Facilities
Authority Revenue VRDN, Series
1989 B, Civic Center Project
(U.S. Government Securities
Colld.)
7,961 3.600 03/25/99 7,961
--------
31,617
--------
FLORIDA--5.0%
Broward County Housing Finance
Authority Revenue VRDN,
Sanctuary Park Apts Multifamily
Project (PNC LOC)
1,460 3.850 06/01/98 1,460
Dade County School Dist GO VRDN,
Series 1994 BTP-66 (MBIA
Insured)
5,535 3.900 06/07/98 5,535
Dade County Solid Waste System
Revenue Bond BAN
5,000 4.750 09/01/98 5,006
</TABLE>
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------------
Florida State Board of Education
Capital Outlay Board VRDN
Series B, BTP-52 ADP
<S> <C> <C> <C>
$ 7,800 3.900% 06/07/98 $ 7,800
Florida State Board of Education
VRDN, Series 1991 B,
BTP 233 (U.S. Govt Secs.
Colld.)
4,000 3.900 10/08/98 4,000
Hillsborough County IDA IDR
VRDN, Tampa Electric Co. Gannon
Goal Project
2,000 3.850 06/01/98 2,000
Jacksonville City Capital
Project Revenue VRDN, Series 1
(AMBAC Insured)
1,600 3.900 06/07/98 1,600
Orange County Housing Finance
Authority VRDN, Citicorp Eagle
Trust, Series 1987-A (GNMA
Securities Colld.)
4,700 3.970 06/07/98 4,700
--------
32,101
--------
GEORGIA--6.9%
Burke County Development
Authority PCR Public Utility
VRDN, Series 1995-4, Georgia
Power Co. Plant Vogtle Project
(Georgia Power Gtd.)
1,300 3.850 06/01/98 1,300
DeKalb County Development
Authority PCR VRDN, Series
1987, General Motors Project
(General Motors Corp. Gtd.)
6,000 3.900 06/07/98 6,000
Elbvert County Development
Authority IDR VRDN, Series
1992, Allied-Signal Project
(FMC Corp. Gtd.)
2,430 3.950 06/07/98 2,430
Fulton County Development
Authority Educational/School
VRDN, Series 1997, Woodward
Academy, Inc. Project (Sun
Trust Bank Fla. LOC)
4,000 3.900 06/07/98 4,000
Fulton County Development
Authority IDR VRDN, General
Motors Project (General Motors
Corp. Gtd.)
2,100 3.900 06/07/98 2,100
Fulton County Resident Elderly
Authority VRDN, St. Anne's
Terrace Project (NationsBank
South LOC)
2,500 3.900 06/07/98 2,500
Georgia State GO VRDN, Series
1993 F, BTP-82A
9,900 3.750 10/15/98 9,900
Georgia State GO VRDN, Series
1994 D, BTP-100
6,035 3.750 10/15/98 6,035
Metro Atlanta Rapid Transit
Authority Revenue Public
Utility VRDN, Series A, Class
B, BTP-58, ADP (AMBAC Insured)
5,965 3.900 06/07/98 5,965
Putnam County Development Authority PCR Public Utility
VRDN, Series 1996, Georgia Power Co., Plant Project
(Georgia Power Co. Gtd.)
1,700 3.850 06/01/98 1,700
Putnam County Georgia Power PCR VRDN, Series 1998,
Georgia Power Plan Branch 1st Series,
(Georgia Power Co. Gtd.)
2,300 3.850 06/01/98 2,300
--------
44,230
--------
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------------
TAX-EXEMPT PORTFOLIO--CONTINUED
HAWAII--0.9%
Hawaii State GO VRDN, Unlimited
Series CS, BTP-302 (MBIA
Insured)
<S> <C> <C> <C>
$ 6,000 3.850% 06/07/98 $ 6,000
--------
ILLINOIS--7.3%
Chicago Board of Education
Education VRDN, BTP-239,
(AMBAC Insured)
9,320 3.850 06/07/98 9,320
Chicago G.O. Refunding GO VRDN,
Series 1998, Citicorp Eagle
Trust 981302 (FSA Insured)
2,500 3.970 06/07/98 2,500
Galesburg City Education VRDN,
Series 1996, Knox College
Project (LaSalle National Bank
LOC)
2,500 3.850 06/07/98 2,500
Illinois Development Finance
Authority Hospital Revenue
VRDN, Seri Provena Health
System (MBIA Insured)
3,000 3.900 06/07/98 3,000
Illinois Development Finance
Authority PCR VRDN,
Series 1994, UNO-VEN Company
Project (National Bank of
Detroit LOC)
1,100 3.800 06/07/98 1,100
Illinois Health Facilities
Authority Pooled Revenue VRDN,
Series 1998, Revolving Pooled
Loan Facility
(First National Bank of
Chicago LOC)
2,000 3.800 06/07/98 2,000
Illinois Health Facilities
Authority VRDN, Series 1990,
Gottlieb Health Resources,
Inc.
(Harris Trust and Savings Bank
LOC)
2,000 3.800 06/07/98 2,000
Illinois State GO VRDN, Series
1998, PCR-10 Citibank T.O.B.
(FSA Insured)
5,000 4.020 06/07/98 5,000
Illinois Metropolitan Pier and
Exposition Authority Dedicated
Sales Tax Revenue, BTP-230 A
(U.S Government Securities
Colld.)
10,000 3.700 09/22/98 10,000
Naperville City IDR VRDN,
General Motors Project
(General Motors Corp. Gtd.)
1,480 3.900 06/07/98 1,480
Peoria IDR VRDN, Series 1997, Peoria Production Shop
Project (Bank One LOC)
2,905 4.000 06/07/98 2,905
South Barrington Village GO VRDN, Series 1998
(Harris Trust and Savings Bank LOC)
4,600 3.800 06/07/98 4,600
--------
46,405
--------
INDIANA--1.8%
Indiana Bond Bank Operating
Municipal Notes, Series 1998
A-2, Advanced Funding Program
7,425 4.000 01/20/99 7,443
</TABLE>
<TABLE>
<CAPTION>
Description
- ---------------------------------------------------------------------------------------------------
Principal
Amount Rate Maturity Date Amortized Cost
- ---------------------------------------------------------------------------------------------------
Indiana Development Finance
Authority VRDN, Series 1997,
Culver Educational Foundation
Project (Chase Manhattan Bank
LOC)
<S> <C> <C> <C>
$ 2,000 3.800% 06/07/98 $ 2,000
Jasper County PCR CP, Series
1988D, Northern Indiana Public
Service Project (Northern
Indiana Public Service)
2,000 3.550 06/19/98 2,000
--------
11,443
--------
IOWA--0.8%
Council Bluffs City PCR Revenue
VRDN, Series 1995, Iowa-
Illinois Gas and Electric
Project (MidAmerican Energy
Company)
5,100 3.850 06/07/98 5,100
--------
KANSAS--3.2%
LaCygne City Environmental Revenue Refunding VRDN,
Series 1994 Kansas City Power and Light Project
(Kansas City Power & Light Gtd.)
2,182 4.000 06/07/98 2,182
Lawrence City GO Temporary Notes, Series 1998-1
6,355 3.790 06/01/98 6,355
Topeka City GO Temporary Notes, Series A
3,800 4.000 07/15/98 3,800
Topeka City GO Temporary Notes, Series A
3,300 3.800 08/15/98 3,302
Wichita City Operating GO Temporary Notes, Series 1994-1
5,000 4.250 08/27/98 5,007
--------
20,646
--------
KENTUCKY--2.9%
Danville City Lease Revenue CP,
Municipal Pooled Lease Program
(PNC Bank LOC)
3,000 3.650 07/17/98 3,000
Kentucky Interlocal School
Transportation Association
TRAN
10,000 4.090 06/30/98 10,000
Mayfield City Lease Revenue
VRDN, Series 1996, Kentucky
League of Cities Pooled
Project
(PNC Bank LOC)
5,700 4.000 06/07/98 5,700
--------
18,700
--------
LOUISIANA--4.8%
Ascension Parish PCR VRDN,
Allied-Signal Project (Allied-
Signal Inc. Gtd.)
6,600 3.950 06/07/98 6,600
Caddo Parish IDR VRDN, General
Motors Project
(General Motors Corp. Gtd.)
3,800 3.900 06/07/98 3,800
Greater Baton Rouge Port
Commission PCR Bonds,
Series 1983-A, Dow Chemical
Company Project
(Dow Chemical Gtd.)
5,035 3.950 12/15/98 5,035
Huntington City Industrial
Development PCR VRDN,
Allied-Signal Project (Allied-
Signal Inc. Gtd.)
1,900 3.950 06/07/98 1,900
Louisiana Public Facilities
Authority PCR VRDN,
Series 1992, Allied-Signal
Project (FMC Corp. Gtd.)
7,915 3.950 06/07/98 7,915
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- -------------------------------------------------------------------------------------------
Principal
Amount Rate Maturity Date Amortized Cost
- -------------------------------------------------------------------------------------------
West Baton Rouge Parish PCR CP,
Series 1987-3, Dow Chemical
Project (Dow Chemical Gtd.)
<S> <C> <C> <C>
$ 5,050 3.550% 06/01/98 $ 5,050
--------
30,300
--------
MARYLAND--1.0%
Maryland State Community
Development Administration,
Series 1993 PT-12, Merrill P-
Floats
(Maryland Community Development
Authority)
3,899 3.870 06/01/98 3,899
Maryland State Economic
Development Authority Pooled
Revenue VRDN, Series 1995
(NationsBank LOC)
2,400 3.900 06/07/98 2,400
--------
6,299
--------
MASSACHUSETTS--1.3%
Massachusetts Bay Transportation
Authority GO Notes,
Series 1998 A
8,000 4.250 02/26/99 8,037
--------
MICHIGAN--0.9%
Michigan State Strategic Fund
IDR VRDN, Allied-Signal Inc.
Project (FMC Corp. Gtd.)
2,500 3.900 06/07/98 2,500
Michigan State TRAN, Series 1997
B
3,000 4.500 07/02/98 3,002
--------
5,502
--------
MINNESOTA--0.3%
St. Paul HDA VRDN, Series A,
Science Museum of Minnesota
Project (US Bank LOC)
2,100 3.700 06/07/98 2,100
--------
MISSISSIPPI--0.2%
Jackson County PCR Refunding
VRDN, Series 1993, Chevron
U.S.A. Inc. Project (Chevron
Oil Gtd.)
1,130 4.050 06/01/98 1,130
--------
MISSOURI--4.2%
Missouri State Environmental
Improvement Authority Revenue
Bond, Series 1992, Kansas Power
and Light Company Project
(Kansas City Power and Light
Gtd.)
6,000 3.750 10/09/98 6,000
Missouri State TOB Custodial
Receipt GO VRDN, Series A
8,860 3.900 06/07/98 8,860
St. Charles County IDA IDR VRDN,
Refunding-Venture Stores Inc.
Project (Bank of America LOC)
2,000 3.800 06/07/98 2,000
St. Louis City TRAN, Series 1997
5,400 4.500 06/30/98 5,403
St. Louis County IDA Hospital
VRDN, Series 1996-B, Friendship
Village West County Project
(LaSalle National Bank LOC)
4,370 3.850 06/07/98 4,370
--------
26,633
--------
</TABLE>
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------------
NEVADA--1.4%
Clark County School District GO
VRDN, Citicorp EagleTrust No.
962804 (FGIC Insured)
<S> <C> <C> <C>
$ 2,900 3.970% 06/07/98 $ 2,900
Nevada State GO VRDN, Series
1997 SGB31 (FGIC Insured)
5,800 4.000 06/07/98 5,800
--------
8,700
--------
NEW YORK--3.0%
Long Island Power Authority
VRDN, Electric Systems Revenue
Sub. Series 2 (Bayerische
Landesbank LOC)
6,000 4.000 06/07/98 6,000
New York City GO VRDN, Sub.
Series 1993 E-3 (Morgan
Guaranty Trust Co. LOC)
2,000 4.000 06/01/98 2,000
New York City Municipal Water
Finance Authority VRDN (MBIA
Insured)
3,800 3.920 06/07/98 3,800
New York State Environment
Facilities Corp. PCR VRDN,
Eagle Trust No. 943204 (FSA
Insured)
5,800 3.970 06/07/98 5,800
Pooled VRDN P-Floats, Series
PPT2
1,425 3.900 06/01/98 1,425
--------
19,025
--------
NORTH CAROLINA--1.4%
Buncombe County PCR IDR VRDN,
Series 1996,
Cooper Industries, Inc. Project
(Cooper Industries Gtd.)
3,200 3.950 06/07/98 3,200
Persons County Industrial
Facilities and Pollution
Control PCR VRDN, Series 1992A,
Carolina Power and Light
Project (Carolina Power and
Light Gtd.)
5,500 4.000 06/07/98 5,500
--------
8,700
--------
OHIO--3.9%
Ohio Air Quality Facilities
Revenue Bond, Series 1988A,
Ohio Edison Company Project
(Toronto-Dominion Bank LOC)
4,000 3.650 02/01/99 4,000
Ohio State Air Quality
Development Authority Bond,
Series A, Pollution Control-
Duquesne Electric
(Union Bank of Switzerland LOC)
4,000 3.950 07/10/98 4,000
Ohio State Higher Education
Capital Facilities VRDN,
Series 1994 A, BTP-69 (AMBAC
Insured)
8,545 3.900 06/07/98 8,545
Ohio State Water Development
Authority PCR VRDN,
Philip Morris Cos., Inc.
Project
(Philip Morris Cos., Inc. LOC)
5,000 4.000 06/07/98 5,000
Red Roof Inns Mortgage Bond
Trust VRDN
(National City Bank LOC)
3,129 3.800 06/15/98 3,129
--------
24,674
--------
</TABLE>
See accompanying notes to financial statements.
13
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------------
TAX-EXEMPT PORTFOLIO--CONTINUED
OKLAHOMA--1.3%
Oklahoma Water Resources Board,
Series 1994 A,
State Loan Program
<S> <C> <C> <C>
$ 8,000 3.550% 09/01/98 $ 8,000
--------
OREGON--0.8%
Portland City Sewer System VRDN,
Series A (FGIC Insured)
5,365 4.020 06/07/98 5,365
--------
PENNSYLVANIA--6.9%
Allegheny County Hospital
Development Authority VRDN,
Series B-2, Presbyterian
University Hospital Project
(PNC Bank LOC)
985 3.800 06/01/98 985
Allegheny County Hospital VRDN,
Series D, Presbyterian Health
Center Project (MBIA Insured)
1,200 3.800 06/01/98 1,200
Allegheny County IDA VRDN,
Series A, Sewickley Academy
Project (PNC Bank LOC)
2,000 3.900 06/07/98 2,000
Delaware County IDA PCR VRDN,
Series 1985, British Petroleum
Oil Inc. Project (British
Petroleum PLC Gtd.)
2,000 4.000 06/01/98 2,000
Emmaus General Authority Pooled
VRDN, Series 1996, Pennsylvania
Variable Rate Loan Program (FSA
Insured)
5,400 3.800 06/07/98 5,400
Pennsylvania State Higher
Education Facilities Authority
VRDN, Series A2, Council of
Independent Colleges
(Allied Irish Banks LOC)
2,000 3.800 06/01/98 2,000
Pennsylvania State Higher
Education Facilities Authority,
Series I (AMBAC Insured)
3,000 4.500 11/01/98 3,008
Philadelphia Hospital and Higher
Education Facilities Authority
VRDN, Series A, Children's
Hospital Project
1,800 4.000 06/01/98 1,800
Philadelphia School District
TRAN (Commerzbank LOC)
10,000 4.500 06/30/98 10,004
Quakertown Hospital Authority
Revenue VRDN, HPS Group
Financing Project (PNC Bank
LOC)
8,500 3.950 06/07/98 8,500
Schuylkill County IDA Recovery
IDR VRDN, Gilberton Power
Project (Mellon Bank LOC)
4,500 3.950 06/07/98 4,500
Warren County Hospital Authority
VRDN, Series 1994 B, Warren
General Hospital Project (PNC
Bank LOC)
1,650 3.900 06/07/98 1,650
Washington County Hospital
Authority VRDN, Series B1-E,
Eye and Ear Hospital (PNC Bank
LOC)
850 3.800 06/01/98 850
--------
43,897
--------
SOUTH CAROLINA--0.4%
Lexington County IDR VRDN,
Series 1992, Allied-Signal
Project (FMC Corp. Gtd.)
800 3.950 06/07/98 800
</TABLE>
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------------
Lexington County IDR VRDN,
Series 1992 A, Allied-Signal
Project (FMC Corp. Gtd.)
<S> <C> <C> <C>
$ 1,880 3.950% 06/07/98 $ 1,880
--------
2,680
--------
SOUTH DAKOTA--1.6%
South Dakota HDA Homeowner
Mortgage Housing VRDN, Series
1996 PT-73-A, Merrill P-Floats
9,875 4.020 06/07/98 9,875
--------
TENNESSEE--1.9%
Bradley County IDA IDR VRDN,
Series 1993 C, Olin Corporation
Project
(Wachovia Bank of North
Carolina LOC)
3,100 3.950 06/01/98 3,100
Chattanooga-Hamilton Company
Hospital Authority VRDN, Series
1987, Erlanger Medical Center
Project
(Morgan Guaranty Trust Co.)
2,000 4.000 06/01/98 2,000
Memphis Health Education and
Housing Facilities VRDN,
Multifamily--Wesley Housing
Project (Barclays LOC)
3,320 3.950 06/07/98 3,320
Shelby County GO Bond, Series B,
BTP-216
4,000 3.750 10/22/98 4,000
--------
12,420
--------
TEXAS--13.9%
Angelina and Neches River
Authority VRDN, Series 1984C,
Solid Waste Disposal
Facilities, TEEC, Inc. Project
(Credit Suisse First Boston
LOC)
2,200 4.000 06/01/98 2,200
Angelina and Neches River
Authority VRDN, Series 1984D,
Solid Waste Disposal
Facilities, TEEC, Inc. Project
(Credit Suisse First Boston
LOC)
1,400 4.000 06/01/98 1,400
Austin City School District
Building and Refunding VRDN,
Series ML SG, Series SG-68
(Permanent School Fund of Texas
Gtd.)
4,900 4.020 06/07/98 4,900
Bastrop City Independent School
District GO VRDN, Series 1997,
Series SGB 37
(Permanent School Fund of Texas
Gtd.)
13,770 4.000 06/07/98 13,770
Bexar County Multifamily Housing
Finance Authority VRDN, Series
1988 A, Creighton's Mill
Development Project (New
England Mutual Gtd.)
2,600 4.050 06/07/98 2,600
Brazos River Harbor Nav. Dist.
PCR CP, Series 1987A,
Dow Chemical (Dow Chemical
Gtd.)
9,250 3.550 06/01/98 9,250
Dallas-Ft Worth Airport Revenue
Refunding VRDN,
Series 1995 SG, Series SGB-5
(FGIC Insured)
6,600 4.000 06/07/98 6,600
Denton City Independent School
District GO Bond, Series B
(Permanent School Fund of Texas
Gtd.)
6,000 3.900 08/15/98 6,000
</TABLE>
See accompanying notes to financial statements.
14
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- ---------------------------------
Principal
Amount Rate Maturity Date Amortized Cost
- ---------------------------------------------------------------------------------------------------
Harris County GO VRDN, Series
19, Toll Road Unlimited Sub
Lien CR138
<S> <C> <C> <C>
$ 6,900 3.970% 06/07/98 $ 6,900
Harris County Toll Road
Unlimited Tax Revenue VRDN,
Series 1994 A, Citicorp Eagle
Trust No. 954302
5,500 4.020 06/07/98 5,500
Houston Water and Sewer System
CP, Series A
5,000 3.650 07/23/98 5,000
Pearland I. S. D. GO VRDN, ML SG
Trust Receipts SG-106
(Permanent School Fund of Texas
Gtd.)
4,000 4.020 06/07/98 4,000
San Antonio Electric and Gas
System Revenue Bond, ML SG
Trust Receipts SG-105
10,000 4.020 06/07/98 10,000
Texas State GO Water Financing
Assistance Refunding VRDN,
Series 1998A, BTP-309
5,385 4.020 06/07/98 5,385
Texas State TRAN, Series A
5,000 4.750 08/31/98 5,011
--------
88,516
--------
UTAH--0.9%
Utah State GO Highway CP, Series
1998B
6,000 3.700 10/08/98 6,000
VIRGINIA--4.0%
Louisa Town PCR CP, Series 1987
(Virginia Electric Power Co.
Gtd.)
4,700 3.650 07/17/98 4,700
Norfolk GO VRDN, Eagle Trust No.
944601
10,100 4.020 06/07/98 10,100
Richmond City Redevelopment and
Housing Authority VRDN, Series
1995 A, Old Manchester Project
(Wachovia Bank of North
Carolina LOC)
2,000 3.800 06/07/98 2,000
Roanoke IDA Hospital Revenue
VRDN, Series 1997A, Carilion
Health System Obligated Group
1,500 4.000 06/01/98 1,500
Virginia State GO VRDN, Series
1994, Citicorp EagleTrust No.
954601
7,000 4.020 06/07/98 7,000
--------
25,300
--------
WASHINGTON--3.8%
Kent City Economic Development
Corp. IDR VRDN, Associated
Grocers Project (Bank of
America LOC)
3,500 4.632 06/07/98 3,500
Spokane County SD #81 GO
Unlimited Bond, Series 1998
8,590 3.650 03/18/99 8,590
Washington State GO VRDN, Smith-
Barney Soc Gen, Series 1993 B,
SGB-13
11,950 4.000 06/07/98 11,950
--------
24,040
--------
</TABLE>
<TABLE>
<CAPTION>
Description
- -------------------------------------------------------------------------------------------------
Principal
Amount/ Maturity Amortized
Shares Rate Date Cost/Value
- -------------------------------------------------------------------------------------------------
WISCONSIN--1.4%
Pleasant Prairie PCR VRDN,
Series 1995 B,
Wisconsin Electric Power
Company Project
(Wisconsin Electric Company
Gtd.)
<S> <C> <C> <C>
$ 2,500 3.950% 06/07/98 $ 2,500
Sheboygan PCR VRDN, Series 1995,
Wisconsin Electric Power
Company Project
(Wisconsin Electric Company
Gtd.)
2,850 3.950 06/07/98 2,850
Wisconsin Housing and Economic
Development Authority Housing
Revenue Bond, Series A
3,260 3.600 09/01/98 3,260
--------
8,610
--------
WYOMING--0.3%
Green River City PCR VRDN
Allied-Signal Project
(FMC Corp. Gtd.)
2,225 3.950 06/07/98 2,225
- -------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL INVESTMENTS $619,830
- -------------------------------------------------------------------------------------------------
OTHER INVESTMENTS--0.5%
AIM Tax Free Money Market Fund
320 -- -- $ 320
Dreyfus Tax Exempt Cash Management Fund
400 -- -- 400
Federated Tax-Free Trust Money
Market Fund #15
1,245 -- -- 1,245
Federated Tax-Free Trust Money
Market Fund #73
819 -- -- 820
Provident Municipal Fund
437 -- -- 437
</TABLE>
- --------------------------------------------------------------------------------
TOTAL OTHER INVESTMENTS $ 3,222
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--97.9% $623,052
- --------------------------------------------------------------------------------
Other assets, less liabilities--2.1% 13,502
- --------------------------------------------------------------------------------
NET ASSETS--100.0% $636,554
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
15
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
May 31, 1998
(All amounts in thousands, except net asset value per share)
(Unaudited)
<TABLE>
<CAPTION>
Diversified Government
Assets Government Select Tax-Exempt
Portfolio Portfolio Portfolio Portfolio
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at
amortized cost $4,364,264 $ 738,208 $1,353,648 $623,052
Repurchase agreements, at cost
which approximates market value 150,000 650,000 -- --
Cash -- 1 -- 30
Receivables:
Interest 27,344 6,017 5,604 6,788
Fund shares sold 179,353 4,474 224 15,238
Investment securities sold -- -- -- 1,150
Administrator 215 82 62 57
Other assets 51 23 -- 13
- -------------------------------------------------------------------------------
TOTAL ASSETS 4,721,227 1,398,805 1,359,538 646,328
- -------------------------------------------------------------------------------
LIABILITIES:
Payable for:
Fund shares redeemed 199,504 37,816 27,014 7,628
Distributions to shareholders 20,307 5,730 6,100 1,911
Accrued expenses:
Advisory fees 955 272 114 136
Administration fees 382 109 114 54
Custodian fees 41 14 13 10
Transfer agent fees 21 6 5 3
Other liabilities 174 45 35 32
- -------------------------------------------------------------------------------
TOTAL LIABILITIES 221,384 43,992 33,395 9,774
- -------------------------------------------------------------------------------
NET ASSETS $4,499,843 $1,354,813 $1,326,143 $636,554
- -------------------------------------------------------------------------------
ANALYSIS OF NET ASSETS:
Paid-in capital $4,500,828 $1,354,842 $1,326,141 $636,339
Accumulated net realized gains
(losses) on investment transac-
tions (985) (29) 2 215
- -------------------------------------------------------------------------------
NET ASSETS $4,499,843 $1,354,813 $1,326,143 $636,554
- -------------------------------------------------------------------------------
Total shares outstanding (no
par value), unlimited shares
authorized 4,500,828 1,354,842 1,326,141 636,339
- -------------------------------------------------------------------------------
Net asset value, offering and
redemption price per share $1.00 $1.00 $1.00 $1.00
- -------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
16
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the Six Months Ended May 31, 1998
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Diversified Government
Assets Government Select Tax-Exempt
Portfolio Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INTEREST INCOME $118,648 $34,953 $37,899 $11,680
- ------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 5,188 1,543 1,690 788
Administration fees 2,075 617 676 315
Registration fees 225 47 62 31
Custodian fees 203 83 87 38
Professional fees 156 54 44 24
Transfer agent fees 99 28 12 15
Trustee fees 63 22 17 8
Other 77 38 24 25
- ------------------------------------------------------------------------------
Total expenses 8,086 2,432 2,612 1,244
Less: Voluntary waivers of in-
vestment advisory fees -- -- (1,014) --
Less: Expenses reimbursable by
Administrator (823) (271) (246) (141)
- ------------------------------------------------------------------------------
Net expenses 7,263 2,161 1,352 1,103
- ------------------------------------------------------------------------------
NET INVESTMENT INCOME 111,385 32,792 36,547 10,577
Net realized gains on investment
transactions 382 64 -- 47
- ------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RE-
SULTING FROM OPERATIONS $111,767 $32,856 $36,547 $10,624
- ------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
17
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended May 31, 1998 (Unaudited) and the Year Ended November
30, 1997
(All amounts in thousands)
<TABLE>
<CAPTION>
Diversified Assets
Portfolio Government Portfolio
------------------------ ------------------------
1998 1997 1998 1997
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS FROM:
OPERATIONS:
Net investment income $111,385 $189,676 $32,792 $67,160
Net realized gains on
investment transactions 382 207 64 212
- -------------------------------------------------------------------------------
Net increase in net assets
resulting from operations 111,767 189,883 32,856 67,372
- -------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income (111,385) (189,676) (32,792) (67,160)
- -------------------------------------------------------------------------------
SHARE TRANSACTIONS (AT
$1.00 PER SHARE):
Proceeds from the sale of
shares 28,756,236 49,976,344 8,379,423 16,517,258
Reinvested distributions 2,242 2,169 357 580
Cost of shares redeemed (28,200,603) (49,216,663) (8,076,432) (16,735,164)
- -------------------------------------------------------------------------------
Net increase (decrease) in
net assets resulting from
share transactions 557,875 761,850 303,348 (217,326)
- -------------------------------------------------------------------------------
Net increase (decrease) 558,257 762,057 303,412 (217,114)
Net assets--beginning of
period 3,941,586 3,179,529 1,051,401 1,268,515
- -------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $4,499,843 $3,941,586 $1,354,813 $1,051,401
- -------------------------------------------------------------------------------
<CAPTION>
Government Select
Portfolio Tax-Exempt Portfolio
------------------------ ------------------------
1998 1997 1998 1997
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS FROM:
OPERATIONS:
Net investment income $36,547 $53,967 $10,577 $23,443
Net realized gains on
investment transactions -- 78 47 27
- -------------------------------------------------------------------------------
Net increase in net assets
resulting from operations 36,547 54,045 10,624 23,470
- -------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income (36,547) (53,967) (10,577) (23,443)
- -------------------------------------------------------------------------------
SHARE TRANSACTIONS (AT
$1.00 PER SHARE):
Proceeds from the sale of
shares 3,702,748 6,143,005 2,537,484 5,626,217
Reinvested distributions 3,056 4,952 108 172
Cost of shares redeemed (3,619,054) (5,744,991) (2,486,244) (5,679,764)
- -------------------------------------------------------------------------------
Net increase (decrease) in
net assets resulting from
share transactions 86,750 402,966 51,348 (53,375)
- -------------------------------------------------------------------------------
Net increase (decrease) 86,750 403,044 51,395 (53,348)
Net assets--beginning of
period 1,239,393 836,349 585,159 638,507
- -------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $1,326,143 $1,239,393 $636,554 $585,159
- -------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
18
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1998 (Unaudited) and the Years Ended November
30,
DIVERSIFIED ASSETS PORTFOLIO
<TABLE>
<CAPTION>
1998 1997 1996 1995 1994 1993 1992 1991 1990
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PE-
RIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM IN-
VESTMENT OPERA-
TIONS:
Net investment
income 0.03 0.05 0.05 0.06 0.04 0.03 0.04 0.06 0.08
- ---------------------------------------------------------------------------------------------------------------------------------
Total income from
investment opera-
tions 0.03 0.05 0.05 0.06 0.04 0.03 0.04 0.06 0.08
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS
FROM:
Net investment
income (0.03) (0.05) (0.05) (0.06) (0.04) (0.03) (0.04) (0.06) (0.08)
- ---------------------------------------------------------------------------------------------------------------------------------
Total distribu-
tions to share-
holders (0.03) (0.05) (0.05) (0.06) (0.04) (0.03) (0.04) (0.06) (0.08)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Total return (a) 2.71% 5.42% 5.30% 5.78%(b) 3.92% 3.00% 3.80% 6.19% 8.01%
Ratio to average
net assets of
(c):
Expenses, net of
waivers and re-
imbursements 0.35% 0.35% 0.34% 0.34% 0.35% 0.34% 0.34% 0.35% 0.35%
Expenses, before
waivers and re-
imbursements 0.39% 0.36% 0.34% 0.34% 0.35% 0.36% 0.35% 0.36% 0.36%
Net investment
income, net of
waivers and
reimbursements 5.37% 5.30% 5.18% 5.63% 3.74% 3.00% 3.79% 6.18% 8.01%
Net investment
income, before
waivers and
reimbursements 5.33% 5.29% 5.18% 5.63% 3.74% 2.98% 3.78% 6.17% 8.00%
Net assets at end
of period (in
thousands) $4,499,843 $3,941,586 $3,179,529 $2,610,347 $2,891,880 $3,200,288 $2,801,744 $2,784,485 $2,192,756
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
1989 1988
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF PE-
RIOD $1.00 $1.00
INCOME FROM IN-
VESTMENT OPERA-
TIONS:
Net investment
income 0.09 0.07
- ---------------------------------------------------------------------------------------------------------------------------------
Total income from
investment opera-
tions 0.09 0.07
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS
FROM:
Net investment
income (0.09) (0.07)
- ---------------------------------------------------------------------------------------------------------------------------------
Total distribu-
tions to share-
holders (0.09) (0.07)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
END OF PERIOD $1.00 $1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Total return (a) 8.98% 7.15%
Ratio to average
net assets of
(c):
Expenses, net of
waivers and re-
imbursements 0.37% 0.39%
Expenses, before
waivers and re-
imbursements 0.37% 0.39%
Net investment
income, net of
waivers and
reimbursements 8.98% 7.15%
Net investment
income, before
waivers and
reimbursements 8.98% 7.15%
Net assets at end
of period (in
thousands) $1,871,713 $1,528,203
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the period. Total
return is not annualized for periods less than one year.
(b) Total return for the year ended November 30, 1995 would have been 5.73%
absent the effect of a capital contribution equivalent to $.0005 per
share received from Northern Trust Corporation.
(c) Annualized for periods less than one year.
See accompanying notes to financial statements.
19
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1998 (Unaudited) and the Years Ended November
30,
GOVERNMENT PORTFOLIO
<TABLE>
<CAPTION>
1998 1997 1996 1995 1994 1993 1992 1991 1990
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PE-
RIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM IN-
VESTMENT OPERA-
TIONS:
Net investment
income 0.03 0.05 0.05 0.06 0.04 0.03 0.04 0.06 0.08
- -------------------------------------------------------------------------------------------------------------------------
Total income from
investment opera-
tions 0.03 0.05 0.05 0.06 0.04 0.03 0.04 0.06 0.08
- -------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS
FROM:
Net investment
income (0.03) (0.05) (0.05) (0.06) (0.04) (0.03) (0.04) (0.06) (0.08)
- -------------------------------------------------------------------------------------------------------------------------
Total distribu-
tions to share-
holders (0.03) (0.05) (0.05) (0.06) (0.04) (0.03) (0.04) (0.06) (0.08)
- -------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- -------------------------------------------------------------------------------------------------------------------------
Total return (a) 2.68% 5.31% 5.20% 5.64%(b) 3.78% 2.91% 3.91% 6.18% 7.89%
Ratio to average
net assets of
(c):
Expenses, net of
waivers and re-
imbursements 0.35% 0.35% 0.35% 0.35% 0.34% 0.34% 0.34% 0.35% 0.37%
Expenses, before
waivers and re-
imbursements 0.39% 0.37% 0.38% 0.40% 0.41% 0.38% 0.40% 0.40% 0.46%
Net investment
income, net of
waivers and
reimbursements 5.31% 5.18% 5.08% 5.49% 3.60% 2.92% 3.71% 6.03% 7.88%
Net investment
income, before
waivers and
reimbursements 5.27% 5.16% 5.05% 5.44% 3.53% 2.88% 3.65% 5.98% 7.79%
Net assets at end
of period (in
thousands) $1,354,813 $1,051,401 $1,268,515 $850,664 $787,816 $1,065,705 $1,163,905 $895,405 $971,720
- -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
1989 1988
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF PE-
RIOD $1.00 $1.00
INCOME FROM IN-
VESTMENT OPERA-
TIONS:
Net investment
income 0.09 0.07
- -------------------------------------------------------------------------------------------------------------------------
Total income from
investment opera-
tions 0.09 0.07
- -------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS
FROM:
Net investment
income (0.09) (0.07)
- -------------------------------------------------------------------------------------------------------------------------
Total distribu-
tions to share-
holders (0.09) (0.07)
- -------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
END OF PERIOD $1.00 $1.00
- -------------------------------------------------------------------------------------------------------------------------
Total return (a) 8.63% 6.83%
Ratio to average
net assets of
(c):
Expenses, net of
waivers and re-
imbursements 0.50% 0.54%
Expenses, before
waivers and re-
imbursements 0.50% 0.55%
Net investment
income, net of
waivers and
reimbursements 8.63% 6.83%
Net investment
income, before
waivers and
reimbursements 8.63% 6.82%
Net assets at end
of period (in
thousands) $423,517 $335,301
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete
redemption of the investment at the net asset value at the end of the
period. Total return is not annualized for periods less than one year.
(b) Total return for the year ended November 30, 1995 would have been 5.53%
absent the effect of a capital contribution equivalent to $.0011 per
share received from Northern Trust Corporation.
(c) Annualized for periods less than one year.
See accompanying notes to financial statements.
20
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1998 (Unaudited) and the Years Ended November
30,
GOVERNMENT SELECT PORTFOLIO
<TABLE>
<CAPTION>
1998 1997 1996 1995 1994 1993 1992 1991 1990(a)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.03 0.05 0.05 0.06 0.04 0.03 0.04 0.06 0.01
- ------------------------------------------------------------------------------------------------------------------------
Total income from in-
vestment operations 0.03 0.05 0.05 0.06 0.04 0.03 0.04 0.06 0.01
- ------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHARE-
HOLDERS FROM:
Net investment income (0.03) (0.05) (0.05) (0.06) (0.04) (0.03) (0.04) (0.06) (0.01)
- ------------------------------------------------------------------------------------------------------------------------
Total distributions to
shareholders (0.03) (0.05) (0.05) (0.06) (0.04) (0.03) (0.04) (0.06) (0.01)
- ------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------------------------------------------------------------------------------
Total return (b) 2.73% 5.41% 5.31% 5.82%(c) 3.84% 3.00% 3.71% 5.82% 0.50%
Ratio to average net
assets of (d):
Expenses, net of waiv-
ers and reimbursements 0.20% 0.20% 0.20% 0.20% 0.20% 0.20% 0.20% 0.20% 0.20%
Expenses, before waiv-
ers and reimbursements 0.39% 0.39% 0.40% 0.41% 0.43% 0.49% 0.52% 0.60% 1.33%
Net investment income,
net of waivers and
reimbursements 5.41% 5.30% 5.19% 5.67% 3.83% 2.99% 3.70% 5.78% 7.65%
Net investment income,
before waivers and
reimbursements 5.22% 5.11% 4.99% 5.46% 3.60% 2.70% 3.38% 5.38% 6.52%
Net assets at end of
period (in thousands) $1,326,143 $1,239,393 $836,349 $685,142 $493,718 $386,507 $264,756 $160,750 $44,215
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) For the period November 7, 1990 (commencement of operations) through
November 30, 1990.
(b) Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the period. Total
return is not annualized for periods less than one year.
(c) Total return for the year ended November 30, 1995 would have been 5.80%
absent the effect of a capital contribution equivalent to $.0002 per share
received from Northern Trust Corporation.
(d) Annualized for periods less than one year.
See accompanying notes to financial statements.
21
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1998 (Unaudited) and the Years Ended November
30,
TAX-EXEMPT PORTFOLIO
<TABLE>
<CAPTION>
1998 1997 1996 1995 1994 1993 1992 1991 1990 1989
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PE-
RIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM IN-
VESTMENT OPERA-
TIONS:
Net investment
income 0.02 0.03 0.03 0.04 0.02 0.02 0.03 0.05 0.06 0.06
- --------------------------------------------------------------------------------------------------------------------------
Total income from
investment opera-
tions 0.02 0.03 0.03 0.04 0.02 0.02 0.03 0.05 0.06 0.06
- --------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS
FROM:
Net investment
income (0.02) (0.03) (0.03) (0.04) (0.02) (0.02) (0.03) (0.05) (0.06) (0.06)
- --------------------------------------------------------------------------------------------------------------------------
Total distribu-
tions to share-
holders (0.02) (0.03) (0.03) (0.04) (0.02) (0.02) (0.03) (0.05) (0.06) (0.06)
- --------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------------------
Total return (a) 1.69% 3.44% 3.37% 3.71% 2.62% 2.27% 2.97% 4.57% 5.71% 6.04%
Ratio to average
net assets of
(b):
Expenses, net of
waivers and re-
imbursements 0.35% 0.35% 0.35% 0.35% 0.35% 0.34% 0.34% 0.35% 0.36% 0.49%
Expenses, before
waivers and re-
imbursements 0.39% 0.39% 0.40% 0.41% 0.36% 0.38% 0.39% 0.40% 0.43% 0.49%
Net investment
income, net of
waivers and
reimbursements 3.35% 3.38% 3.32% 3.63% 2.40% 2.27% 2.95% 4.57% 5.71% 6.03%
Net investment
income, before
waivers and
reimbursements 3.31% 3.34% 3.27% 3.57% 2.39% 2.23% 2.90% 4.52% 5.64% 6.03%
Net assets at end
of period (in
thousands) $636,554 $585,159 $638,507 $803,730 $853,103 $1,191,932 $1,226,480 $872,405 $752,257 $545,215
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
1988
- --------------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE,
BEGINNING OF PE-
RIOD $1.00
INCOME FROM IN-
VESTMENT OPERA-
TIONS:
Net investment
income 0.05
- --------------------------------------------------------------------------------------------------------------------------
Total income from
investment opera-
tions 0.05
- --------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS
FROM:
Net investment
income (0.05)
- --------------------------------------------------------------------------------------------------------------------------
Total distribu-
tions to share-
holders (0.05)
- --------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
END OF PERIOD $1.00
- --------------------------------------------------------------------------------------------------------------------------
Total return (a) 4.92%
Ratio to average
net assets of
(b):
Expenses, net of
waivers and re-
imbursements 0.48%
Expenses, before
waivers and re-
imbursements 0.48%
Net investment
income, net of
waivers and
reimbursements 4.92%
Net investment
income, before
waivers and
reimbursements 4.92%
Net assets at end
of period (in
thousands) $529,680
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete
redemption of the investment at the end of the period. Total return is
not annualized for periods less than one year.
(b) Annualized for periods less than one year.
See accompanying notes to financial statements.
22
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
May 31, 1998
(Unaudited)
1. ORGANIZATION
Northern Institutional Funds (the "Trust") is a Delaware business trust which
was formed on July 1, 1997, and is registered under the Investment Company Act
of 1940 (as amended) as an open-end management investment company. The Trust,
formerly known as The Benchmark Funds, changed it's name effective July 15,
1998. The Trust includes seventeen portfolios, each with its own investment
objective. Prior to March 31, 1998, each portfolio was a series of The
Benchmark Funds, a Massachusetts business trust, which reorganized into the
Trust at the close of business on that date. The Northern Trust Company
("Northern") is the investment adviser for all actively managed Portfolios and
is the custodian and transfer agent for all Northern Institutional Funds.
Goldman, Sachs & Co. ("Goldman Sachs") acts as the Trust's administrator and
distributor. Presented herein are the financial statements of the money market
portfolios.
The Trust includes four diversified money market portfolios: Diversified
Assets Portfolio, Government Portfolio, Government Select Portfolio and Tax-
Exempt Portfolio (the "Portfolios"). Each of these Portfolios has three
classes of shares: Shares, Services Shares and Premier Shares. Each class is
distinguished by the level of administrative, liaison and transfer agent
service provided. As of May 31, 1998, no Service or Premier Shares have been
sold.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Portfolios in preparation of their financial statements. These
policies are in conformity with generally accepted accounting principles
("GAAP"). The presentation of financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
(a) Investment Valuation
Investments are valued at amortized cost, which approximates market value.
Under the amortized cost method, investments purchased at a discount or
premium are valued by amortizing the difference between the original purchase
price and maturity value of the issue over the period to maturity.
(b) Repurchase Agreements
During the term of a repurchase agreement, the market value of the underlying
collateral, including accrued interest, is required to exceed the market value
of the repurchase agreement. The underlying collateral for all repurchase
agreements is held in a customer-only account of Northern, as custodian for
the Trust, at the Federal Reserve Bank of Chicago.
Each Portfolio may enter into joint repurchase agreements with non-affiliated
counterparties through a master repurchase agreement with Northern. Northern
administers and manages these repurchase agreements in accordance with and as
part of its duties under its investment advisory agreements with the
Portfolios and does not collect any additional fees from the Portfolios. The
Diversified Assets and Government Portfolios had entered into such joint
repurchase agreements as of May 31, 1998, as reflected in the accompanying
Statements of Investments.
(c) Interest Income
Interest income is recorded on the accrual basis and includes amortization of
discounts and premiums.
(d) Federal Taxes
It is each Portfolio's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
each year substantially all of its taxable income and tax-exempt income to its
shareholders. Therefore, no provision is made for federal taxes.
At November 30, 1997, the Trust's most recent tax year end, there were
capital loss carryforwards for U.S. federal tax purposes of approximately
$1,367,000 and $93,000 for the Diversified Assets and Government Portfolios,
respectively. These amounts are available to be carried forward to offset
future capital gains to the extent permitted by applicable laws or
regulations. These capital loss carryforwards expire in 2002.
(e) Expenses
Expenses arising in connection with a specific Portfolio are allocated to that
Portfolio. Certain expenses arising in connection with a class of shares are
allocated to that class of shares.
Expenses incurred which do not specifically relate to an individual Portfolio
are allocated among the Portfolios based on each Portfolio's relative average
net assets for the year.
23
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS--CONTINUED
May 31, 1998
(Unaudited)
(f) Distributions
Each Portfolio's net investment income is declared daily as a dividend to
shareholders of record as of 3:00 p.m., Chicago time. Net realized short-term
capital gains, if any in excess of net capital loss carryforwards, are
declared and distributed at least annually.
Distributions of net investment income with respect to a calendar month
(including with respect to shares redeemed at any time during the month) are
made as soon as practicable following the end of the month. Distributions are
made by each Portfolio to Northern in cash or automatically reinvested in
additional shares of the Portfolio. Northern has undertaken to credit or
arrange for the crediting of such distributions to each shareholder's account
with Northern, its affiliates or its correspondents.
3. ADVISORY, TRANSFER AGENCY, CUSTODIAN AND OTHER AGREEMENTS
As compensation for the services rendered as investment adviser, including the
assumption by Northern of the expenses related thereto, Northern is entitled
to a fee, computed daily and payable monthly, at an annual rate of .25% of
each Portfolio's average daily net assets.
Until further notice, Northern has voluntarily agreed to waive .15% of its
advisory fee for the Government Select Portfolio, reducing such fee to .10%
per annum. The effect of this waiver by Northern for the six months ended May
31, 1998 was to reduce advisory fees as shown on the accompanying Statements
of Operations.
As compensation for the services rendered as custodian and transfer agent,
including the assumption by Northern of the expenses related thereto, Northern
receives compensation based on a pre-determined schedule of charges approved
by the Board.
4. ADMINISTRATION AND DISTRIBUTION AGREEMENTS
The Trust has an administration agreement with Goldman Sachs whereby each
Portfolio pays the Administrator a fee, computed daily and payable monthly, at
an annual rate of .10% of each Portfolio's daily net assets.
In addition, if in any fiscal year the sum of a Portfolio's expenses,
including the administration fee, but excluding the investment advisory fee to
Northern pursuant to its agreements with the Trust, servicing fees, and
extraordinary expenses (such as taxes, interest and indemnification expenses),
exceeds on an annualized basis .10% of a Portfolio's average net assets,
Goldman Sachs will reimburse each Portfolio for the amount of the excess
pursuant to the terms of the administration agreement.
No administrator fees were waived under this agreement during the six months
ended May 31, 1998. Furthermore, Goldman Sachs voluntarily agreed to reimburse
each Portfolio for certain expenses in the event that such expenses, as
defined, exceed on an annualized basis .10% of its average daily net assets.
Expenses reimbursed during the six months ended May 31, 1998 are shown on the
accompanying Statements of Operations.
Goldman Sachs receives no compensation under the distribution agreement.
5. SERVICE PLAN
The Trust has adopted a Service Plan pursuant to which the Trust may enter
into agreements with institutions or other financial intermediaries under
which they will render certain administrative support services and in some
cases personal and account maintenance services for their customers or
investors who beneficially own Service and Premier Shares. As compensation
under the Service Plan, the institution or other financial intermediary
receives a fee at an annual rate of up to .25% and .50% of the average daily
net asset value of the outstanding Service and Premier Shares, respectively.
Furthermore, the Service Plan also provides for consulting services,
technology and systems support services to the Service and Premier Shares
customers for a fee at an annual rate of up to .08% of the average daily net
asset value of such shares serviced.
6. BANK LOANS
Prior to January 16, 1998, the Trust maintained a $5,000,000 revolving bank
credit line and a $15,000,000 conditional revolving credit line for liquidity
and other purposes. As of January 16, 1998, the Trust maintains a $100,000,000
revolving bank credit line and a $15,000,000 conditional revolving credit line
for liquidity and other purposes. Borrowings under this arrangement bear
interest at 1% above the federal funds rate and are secured by pledged
securities equal to or exceeding 120% of the outstanding balance.
There were no borrowings under this agreement during the six months ended May
31, 1998.
24
<PAGE>
Investment Adviser, Transfer Agent and Custodian:
The Northern Trust Company
50 South LaSalle Street
Chicago, Illinois 60675
Administrator and Distributor:
Goldman, Sachs & Co.
4900 Sears Tower
Chicago, IL 60606
This Semi-Annual Report is authorized for distribution to prospective
investors only when preceded or accompanied by a Prospectus which contains
facts concerning the objectives and policies, management expenses and
other information.
<PAGE>
Northern Institutional Funds
(formerly The Benchmark Funds)
FIXED INCOME AND EQUITY PORTFOLIOS
MAY 31, 1998
Semi-Annual Report
<PAGE>
Effective July 15, 1998, the name of The Benchmark Funds
changed to "Northern Institutional Funds". Although the
former name was in effect as of the date of the
financial statements contained in this Semi-Annual Report
dated May 31, 1998, the new name,
Northern Institutional Funds,
has been used throughout to alleviate confusion.
<PAGE>
Northern Institutional Funds (formerly The Benchmark Funds)
Fixed Income and Equity Portfolios
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Investment Outlook......................................................... 2
Voting Results of Special Meeting of Shareholders.......................... 5
Fixed Income Portfolios
Statements of Investments
Bond Portfolio......................................................... 6
Intermediate Bond Portfolio............................................ 8
International Bond Portfolio........................................... 9
Short-Intermediate Bond Portfolio...................................... 10
U.S. Government Securities Portfolio................................... 12
U.S. Treasury Index Portfolio.......................................... 13
Statements of Assets and Liabilities..................................... 14
Statements of Operations................................................. 15
Statements of Changes in Net Assets...................................... 16
Financial Highlights..................................................... 18
Equity Portfolios
Statements of Investments
Balanced Portfolio..................................................... 24
Diversified Growth Portfolio........................................... 27
Equity Index Portfolio................................................. 29
Focused Growth Portfolio............................................... 35
International Equity Index Portfolio................................... 37
International Growth Portfolio......................................... 48
Small Company Index Portfolio.......................................... 50
Statements of Assets and Liabilities..................................... 70
Statements of Operations................................................. 71
Statements of Changes in Net Assets...................................... 72
Financial Highlights..................................................... 74
Notes to the Financial Statements.......................................... 81
</TABLE>
- --------------------------------------------------------------------------------
1
<PAGE>
Northern Institutional Funds
Fixed Income and Equity Portfolios
- -------------------------------------------------------------------------------
INVESTMENT OUTLOOK
WHAT HAS CHANGED
The worsening economic crisis in Asia dimmed prospects for global growth.
Troubles in the Far East deepened as Japan's economy entered recession,
pushing the U.S. dollar to an eight-year high against the yen. On the home
front, flight-to-quality trading pushed the yield on the 30-year Treasury to a
21-year low, Congress moved to lower the long-term capital gains holding
period to 12 months, and stocks rebounded to near all-time highs as worries
diminished concerning second quarter earnings.
ECONOMIC OUTLOOK
MODERATE ECONOMIC GROWTH IS EXPECTED TO CONTINUE
Economic growth is slowing to a more moderate pace from its almost boom-like
first quarter performance. For now, this slowdown is concentrated in the
manufacturing sector. Exports to Asia have fallen because of the recession
there. Domestic business equipment spending is slowing in the face of falling
factory capacity utilization and weaker demand. Inventory growth also is
expected to slow because of the rapid accumulation in the first quarter and
General Motors ("GM") strike-related shutdown. More than offsetting these
brakes on economic activity is a vibrant household sector. With unemployment
very low and real incomes rising, consumer spending has remained strong. These
same factors that are contributing to consumer spending, in combination with
low nominal interest rates, are keeping the demand for residential real estate
high. Nonresidential real estate activity is also strong because of rising
rents, increased acquisition costs, and readily available financing. In the
coming months, the weakness in the manufacturing sector is likely to filter
through to other parts of the economy, slowing, but not stalling them.
The Asian economic crisis worsened markedly in recent weeks, so much so that
references to deflationary spirals and Asian depressions have begun to appear
in market analyses and news reports. Japan's economy has entered a recession,
with Hong Kong likely to follow. The second largest economy in Asia, that of
mainland China, has slowed significantly. Although the previously-announced
Japanese fiscal stimulus program, which is only now being implemented, will
stimulate some domestic demand, it remains to be seen if it will be enough to
stabilize the Japanese economy, let alone generate job-creating growth. There
are suggestions that the ruling Japanese political party will recommend
permanent tax cuts in the run-up to the July 12, 1998 parliamentary elections.
Although the Japanese government appears to have a greater urgency to resolve
the bad-loan problems of the banks, a resolution, in and of itself, will have
only a marginally salutary impact on domestic demand. In order to ease the
credit crunch in Japan quickly, the government would have to use public funds
to re-capitalize the banking system. After more than eight years of Japan's
"muddling through" its various crises, financial markets are skeptical that
these new policy changes will be implemented in a timely and successful
manner. Meanwhile, the Chinese government is expected to use fiscal and
monetary policies to boost domestic demand rather than devaluing its currency
in an effort to increase exports.
U.S. consumer inflation has started to edge higher in the face of very
strong demand, human capital constraints, and slowing productivity, but
declining import prices continue to act as a governor on inflation. Falling
commodity prices, especially energy prices, also have been a limiting factor
with regard to inflation. The expected moderation in U.S. economic activity
will likely relieve some of the cyclical inflationary pressures. The Federal
Reserve shares this outlook and is likely to keep policy on hold for the
foreseeable future. Making their job even more difficult over the next few
months will be the distortion imparted to reported economic data by the
temporary negative effects from the GM strike. The monetary policymakers are
also aware that the global financial markets are currently very fragile. A
tightening in U.S. monetary policy in this environment would run the risk of
triggering an avalanche in global equity share prices, which, in turn, could
slow the U.S. economy more than desired. With inflation still low, and,
perhaps as important, inflation expectations low, the Federal Reserve believes
that it can be less preemptive now than otherwise would be the case.
FIXED INCOME OUTLOOK
BONDS REMAIN AN ATTRACTIVE INVESTMENT
Bond investors experienced a volatile but rewarding quarter as renewed turmoil
in Asia more than offset concerns about
Shares of Northern Institutional Funds are not bank deposits or obligations of,
or guaranteed, endorsed or otherwise supported by The Northern Trust Company,
its parent company, or its affiliates, and are not Federally insured or
guaranteed by the U.S. Government, Federal Deposit Insurance Corporation,
Federal Reserve Board, or any other governmental agency. Investment in the
portfolios involves investment risks, including possible loss of principal
amount invested.
2
<PAGE>
- -------------------------------------------------------------------------------
continued strong growth in the domestic economy. Economic and policy
developments emanating from Asia caused bond sentiment to shift from
expectations that the Federal Reserve was contemplating raising rates in order
to cool the economy to a belief that a possible economic slowdown was in the
offing. Bonds rallied sharply and the yield curve flattened amidst this shift,
initially in a classic "flight to quality" and subsequently on growing
expectations that Asia's woes would curb U.S. growth and keep inflation
subdued. The change in sentiment and ensuing rally drew considerable support
from Chairman Greenspan's early June testimony to Congress where his comments
began with a declaration that "an assessment (of U.S. economic conditions)
cannot be made in isolation but depends critically on what is happening in the
rest of the world."
We have long anchored our constructive outlook for bonds in a plethora of
favorable secular trends which were viewed as being both significant and long
lasting. Over the past several years, we have encountered periods of relative
cyclical strength that tested our convictions. With each occurrence, upon
evaluation, we concluded that the strength of our favorable secular arguments
dominated whatever risks were posed by the cyclical threat. Presently, and
uncharacteristically, we find the cyclical wind at our back. While we continue
to view all of our oft-mentioned secular developments in a constructive light,
we now believe that fallout from Asia's financial crisis is making the
cyclical U.S. economic environment more supportive for bonds. We think the
case that the economy will slow to a below-trend pace has strengthened in
recent weeks. In his comments to Congress, Greenspan noted several factors
likely to cause growth to slow in the quarters ahead. Most importantly,
weakening demand in Asia and the stronger dollar will continue to cause U.S.
exports to decline. With Japan now in a recession, the likelihood has
increased that Asia's weakness will deteriorate further and spread to other
regions causing net exports to post additional declines. Secondly, a draw down
in inventories is likely to slow real Gross Domestic Product from its very
strong first-quarter pace. Also mentioned by Greenspan was the fact that the
recent trend of narrowing profit margins appeared to be causing a reassessment
of the expected returns on plant and equipment which could lead to a decline
in business investment. Looking back to the first quarter, there is little
doubt that some of the earlier strength was borrowed from the future as
residential construction, for example, benefited from mild winter weather.
More recently, the GM strike will slow near-term growth. So far, the dampening
effects of Asia on the U.S. economy have not had much impact on the consumer,
which has been supported by the favorable labor situation and strong stock
market. However, consumer spending would be vulnerable to a collapse in Japan,
whether directly via falling exports or indirectly via a downward revaluation
of equity prices.
The combination of slower cyclical growth and subdued inflation should allow
the Federal Reserve to keep monetary policy on hold for the rest of the year.
Bonds should perform well in this environment, especially when viewed against
a secular backdrop which remains highly favorable. As we noted last month, our
constructive view of the bond market has not been built on expectations of
continuous global economic and financial strife. However, repeating our
comments from a month ago, the scope and severity of near-term uncertainties
continues to enhance the constructive fundamental case we have long been
making for bonds.
EQUITY OUTLOOK
EQUITIES ARE MODERATELY OVERVALUED
An end-of-quarter rally after several pronounced earnings disappointments
enabled the market to rise 4% for the most recent three months, albeit in a
choppy and volatile fashion. Cash flows into mutual funds remained strong and
global events buffeted investors' perceptions perhaps more strongly than
actual results. The re-emergence of the Asian problem led to a sell-off, in
mid-quarter, of nearly 5% in the S&P 500, but closer to 10% in the other broad
averages, a normal and healthy occurrence. As the new quarter begins,
attention is again focused on earnings that are thought to have risen 3% to 4%
according to the IBES consensus. We continue to believe that the 7% to 8%
growth estimates for 1998 will prove optimistic and believe the current
earnings softness will extend into 1999.
We gathered two interesting insights on the U.S. market on a recent trip to
Europe. First, European investors have been very wrong regarding both the U.S.
and Japan, underweighting the former and overweighting the latter. As events
in 1998 have played out, these investors have been reducing their weight in
Japan and raising it here in the U.S. While there is no real long-term
bullishness on the U.S. as it is still seen as too richly valued, it looks
better than Japan and the dollar looks safer than the yen. It is also possible
that with a huge bull market in Europe to capture their attention, investors
have moved to "neutralize" the other two major areas of the world.
3
<PAGE>
Northern Institutional Funds
Fixed Income and Equity Portfolios
- -------------------------------------------------------------------------------
INVESTMENT OUTLOOK--CONTINUED
The other insight supports our long-held favorable view of U.S. bonds. A
long-time global investor pointed out that U.S. stocks were not so expensive,
rather, that the U.S. bond market was incredibly cheap. With rates across
Europe at under 5%, why should the strongest economy and strongest currency
have a bond market yielding 100 basis points higher? Over time, the argument
went, rates would converge toward 4% in a low-inflation world with the best
returns in dollar bonds and the worst in yen bonds. While we have not been
quite that bullish on bonds, this analysis could provide a "super Goldilocks"
environment where financial assets perform well for several more years.
GLOBAL OUTLOOK
FUNDAMENTALS SUPPORT EUROPE; ASIA IS MIXED
Over the past few months we have articulated our positive view on Europe,
especially relative to Asia and emerging markets. Europe (excluding the U.K.)
is the best earnings growth story in the world. Economic growth has picked up
as EMU constraints have lessened now that 11 members have qualified. Earnings
growth is surging with the first set of earnings upgrades beginning in 1997
and continuing this year after six years of downgrades. We expect growth to
average 15% in 1998 and 15% to 17% in 1999 in continental Europe. (U.K. growth
will likely parallel that of the U.S.) This contrasts with growth of perhaps
4% to 6% in the U.S. and sharp falls in Asia.
Not only are earnings set to rise from a normal cyclical upturn, but three
additional factors will exert further upside pressure on earnings. First, tax
reductions in several countries could boost results 2% to 3%. Second, share
buybacks, still being legalized in countries such as France, the Netherlands,
and Scandinavia, could add 3% to 5% to reported results. In the U.S., buybacks
were approximately $175 billion in both 1996 and 1997 compared with just $12
billion in Europe. This year we see buybacks of nearly $25 billion on the
Continent, and the level could reach $50 billion in another year or two.
Third, mergers, disposals, and restructuring benefits are just beginning to
aid results, adding perhaps another percent or two to growth. It is fairly
easy to envision 20% earnings per share growth this year and next as these
factors begin to have an impact. The other major factor to consider is the
longer-term improvement in profitability that is under way. From a return on
equity standpoint, we see Europe moving from 10% to 11% in 1997 to 16% to 18%
by the year 2000, similar to the U.S. achievement in the early 1990s.
The other great story in Europe that is comparable to recent U.S. experience
is the strong liquidity flows into equities from fixed income and cash.
Compared with the nearly $250 billion of mutual fund buying in the U.S.,
Europe has seen just $14 billion in 1996 and $66 billion in 1997 flow into
mutual funds. However, as yields have fallen sharply and converged under 5%
for 10-year bonds and toward 4% on short-term rates, a rather dramatic move to
stocks have begun and should build significantly. The run rate so far in 1998
is $100 billion and if markets keep rising, quite a lot more is possible. In
addition, institutional assets are heavily invested in bonds and European
institutions under-own stocks. Conservative estimates expect nearly two
trillion dollars of bond investments to be reallocated to stocks over the next
two to three years. For example, other than the U.K.'s high 52% equity
exposure, only French and Danish pension funds have more than 20% invested in
stocks. Germany has just 6% in equities, while Spain and Italy have just 3%!
In fact, the liquidity story in Europe (again excluding the U.K.) is possibly
as big as that of the U.S. since 1990.
From a valuation perspective, good news is in the price to a degree as
markets generally sell for 20-23 earnings versus about 23 times for the U.S.
but estimates are rising in Europe even as they are being reduced in the
States. The markets in Europe have had a good 12-month run, but only recently
have they reversed six years of underperformance. We conclude that it is early
to mid life in the European bull market with more upgrades and higher
liquidity likely to filter in over the next 18 months. While the traditional
correction or lull is likely, especially with the World Cup taking place in
France, we think the investment case remains strongly positive.
July 9, 1998
4
<PAGE>
Northern Institutional Funds
Fixed Income and Equity Portfolios
- --------------------------------------------------------------------------------
VOTING RESULTS OF SPECIAL MEETING OF UNITHOLDERS*
At a Special Meeting of Unitholders of the U.S. Government Securities Portfolio
of The Benchmark Funds, a Massachusetts business trust (the "Meeting"), called
on January 26, 1998, the following actions were taken:
(1) An Agreement and Plan of Reorganization pursuant to which the U.S.
Government Securities Portfolio was reorganized as a series of a Delaware
business trust also named The Benchmark Funds was approved by the U.S.
Government Securities Portfolio with 1,727,747 votes for, 1,099 votes against,
4,580 votes abstained.
(2) A new fundamental investment restriction for the U.S. Government
Securities Portfolio (a diversified portfolio) concerning issuer
diversification was approved by U.S. Government Securities Portfolio with
1,727,747 votes for, 1,099 votes against, and 4,580 votes abstained.
*Prior to the reorganization of the Portfolios of the Trust as series of the
Delaware Business Trust on March 31, 1998, ownership interests in the
Portfolios were designated as "units" rather than "shares."
5
<PAGE>
Northern Institutional Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Description
- -----------------------------------------------
Principal Maturity
Amount Rate Date Value
- -----------------------------------------------
BOND PORTFOLIO
<C> <S> <C> <C>
ASSET-BACKED SECURITIES--9.2%
AUTOMOTIVE--7.0%
Banc One Auto
Grantor Trust,
Series 1997-B, Class
A
$12,800 6.290% 07/20/04 $12,885
WFS Financial Owner
Trust,
Series 1997-A, Class
A-3
10,000 6.500 09/20/01 10,066
Series 1997-D, Class
A-3
16,000 6.250 03/20/02 16,090
-------
39,041
-------
HOME EQUITY LOANS--2.2%
IMC Excess Cashflow
Securities Trust,
Series 1997-A, Class
A
8,156 7.410 11/26/28 8,118
The Money Store
Trust, Series 1997-
1(/1/)
4,228 7.360 05/16/01 4,227
-------
12,345
- -----------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(Cost $51,178) $51,386
- -----------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS--
18.9%
American Southwest
Financial Securities
Corp., Series 1996
FHA-1, Class A-1
$ 982 6.675% 12/25/01 $ 990
Contimortgage Home
Equity Loan Trust,
Interest Only
Stripped Security,
Series 1998-1, Class
A10I
-- 6.612 09/15/00 13,279
Contimortgage Net
Interest Margin
Notes, Series 1998-
A, Class A(/1/)
8,400 7.920 03/16/28 8,378
Countrywide Funding
Corp.,
Series 1993-1, Class
A-4
12,006 4.384 10/25/23 11,340
Countrywide Mortgage
Backed Securities,
Inc., Series 1993-D,
Class A-11
6,047 5.796 01/25/09 5,443
Delta Funding Corp.,
Interest Only
Stripped Security,
Series 1991-1, Class
A-4(/1/)
-- 18.000 01/01/06 17
Donaldson, Lufkin, &
Jenrette
Mortgage Acceptance
Corp.,
Adjustable Rate,
Interest Only
Stripped Security,
Series 1995-QE10
-- 18.000 11/25/25 617
Donaldson, Lufkin, &
Jenrette
Mortgage Acceptance
Corp.,
Series 1994-Q8,
Class 2-A1
3,914 7.250 05/25/24 4,053
</TABLE>
<TABLE>
<CAPTION>
Description
- ------------------------------------------
Principal Maturity
Amount Rate Date Value
- ------------------------------------------
<C> <S> <C> <C>
First Union-Lehman
Brothers-Bank of
America Commercial
Mortgage Trust,
Series 1998-C2,
Class A-2
$11,840 6.560% 11/18/08 $ 12,017
Lehman FHA Title
Loan Trust,
Interest Only
Stripped Security,
Series 1996-2, Class
S
-- 11.949 05/25/17 2,438
Morgan Stanley
Capital I,
Series 1998-WF1,
Class A2
20,000 6.550 12/15/07 20,405
PNC Mortgage
Securities Corp.,
Series 1996-PR1,
Class A(/1/)
8,807 8.151 04/28/27 9,117
Residential Asset
Securitization
Trust,
Series 1997-A8,
Class A-3
10,163 7.000 10/25/27 10,182
Residential Funding
Mortgage Securities
I, Inc., Principal
Only Stripped
Security,
Series 1997-S18,
Class A-2
8,396 -- 11/25/27 6,830
- ------------------------------------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS (Cost $104,496) $105,106
- ------------------------------------------
CORPORATE AND FOREIGN GOVERNMENT BONDS--
16.2%
BEVERAGES--2.8%
Coca-Cola (The) Co.
$14,935 6.700% 10/15/36 $ 15,515
--------
FOREIGN GOVERNMENT BOND--3.2%
Quebec Province,
Canada
Medium Term Note
15,450 7.220 07/22/36 17,603
--------
INDUSTRIAL--2.8%
Penney (J.C.) & Co.,
Inc.
15,000 6.900 08/15/03 15,645
--------
INSURANCE SERVICES--4.5%
Anthem
Insurance(/1/)
6,000 9.000 04/01/27 6,700
Lumberman's Mutual Casualty
Co.
4,170 9.150 07/01/26 4,996
1,830 8.300 12/01/37 2,000
Prudential Insurance
Co.
10,000 8.300 07/01/25 11,501
--------
25,197
--------
SANITARY SERVICES--2.9%
WMX Technologies,
Inc.
15,300 7.100 08/01/26 15,903
- ------------------------------------------
TOTAL CORPORATE AND FOREIGN
GOVERNMENT BONDS (Cost
$85,185) $ 89,863
- ------------------------------------------
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- ------------------------------------------
Principal Maturity
Amount Rate Date Value
- ------------------------------------------
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCIES--4.2%
COLLATERALIZED MORTGAGE OBLIGATIONS--
4.2%
FANNIE MAE REMIC TRUST--2.0%
Series 1991-127,
Class SA
$ 367 11.759% 09/25/98 $ 368
Series 1996-M4,
Class A
5,567 7.750 03/17/17 5,721
Series 1992-73,
Class G
5,232 7.500 04/25/21 5,292
--------
FANNIE MAE REMIC TRUST 11,381
--------
INTEREST ONLY STRIPPED SECURI-
TIES--0.8%
Series 278, Class 2
-- 18.165 08/01/25 1,382
Series 1997-20,
Class IO
-- 14.207 03/25/27 2,779
--------
4,161
--------
FANNIE MAE REMIC TRUST
PRINCIPAL ONLY STRIPPED SECU-
RITIES--1.4%
Series 1993-132,
Class D
1,573 10.698 10/25/22 1,083
Series 1994-9, Class
G
317 4.954 11/25/23 304
Series 1996-14,
Class PR
7,614 9.533 01/25/24 6,315
--------
7,702
--------
MORTGAGE-BACKED SECURITIES--
0.0%
FREDDIE MAC--0.0%
$ 1 6.500% 06/01/04 $ 1
- ------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost $22,022) $ 23,245
- ------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--
38.6%
U.S. TREASURY BONDS--35.5%
$105,000 6.625% 07/31/01 $108,101
63,860 7.125 02/15/23 73,888
15,000 6.000 02/15/26 15,225
--------
197,214
--------
U.S. TREASURY NOTES--3.1%
5,000 6.875 08/31/99 5,078
10,995 7.500 02/15/05 12,122
--------
17,200
- ------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGA-
TIONS
(Cost $206,112) $214,414
- ------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Description
- ------------------------------------------
Shares/
Principal Maturity
Amount Rate Date Value
- ------------------------------------------
<C> <S> <C> <C>
PREFERRED STOCKS--3.4%
AGENCY--2.6%
15,000 Home Ownership
Funding Corp. $ 14,637
REAL ESTATE--0.8%
4,600 Tier One Properties,
Inc. 4,477
- ------------------------------------------
TOTAL PREFERRED STOCKS (Cost
$19,600) $ 19,114
- ------------------------------------------
FLOATING RATE BANK NOTES--5.2%
Lloyds Bank PLC
$14,950 6.188% 06/15/98 $ 13,370
Midland Bank PLC
2,500 6.188 06/28/98 2,113
National Westminster
Bank
15,300 5.813 08/28/98 13,264
- ------------------------------------------
TOTAL FLOATING RATE BANK NOTES
(Cost $28,033) $ 28,747
- ------------------------------------------
SHORT-TERM INVESTMENT--2.7%
Marshall & Isley
Bank, Grand Cayman
$14,805 5.688% 06/01/98 $ 14,805
- ------------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $14,805) $ 14,805
- ------------------------------------------
TOTAL INVESTMENTS--98.4%
(Cost $531,431) $546,680
- ------------------------------------------
Other assets, less liabili-
ties--1.6% 8,932
- ------------------------------------------
NET ASSETS--100.0% $555,612
- ------------------------------------------
- ------------------------------------------
</TABLE>
(/1/)At May 31, 1998, the Portfolio owned restricted securities valued at
approximately $28,439 (5.1% of net assets), with an aggregate cost basis of
$27,861. 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.
See accompanying notes to financial statements.
7
<PAGE>
Northern Institutional Funds
Fixed Income Portfolios
- -------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------
Principal Maturity
Amount Rate Date Value
- -----------------------------------------------------
INTERMEDIATE BOND PORTFOLIO
<C> <S> <C> <C>
ASSET-BACKED SECURITIES--10.3%
AUTOMOTIVE--6.0%
Chevy Chase
Automobile
Receivables Trust,
Series 1997-4, Class
A
$ 476 6.250% 06/15/04 $ 477
Olympic Automobile
Receivables Trust,
Series 1996-D, Class
A-4
500 6.050 08/15/02 502
WFS Financial Owner
Trust,
Series 1997-D, Class
A-3
500 6.250 03/20/02 503
-------
1,482
-------
HOME EQUITY LOANS--4.3%
Advanta Mortgage
Loan Trust, Interest
Only Stripped
Security,
Series 1998-1 Class
AI0
4,700 3.096 10/25/00 527
Contimortgage Net
Interest Margin
Notes, Series 1998-
A, Class A(/1/)
256 7.920 03/16/28 255
IMC Excess Cashflow
Securities Trust,
Series 1997-A, Class
A
177 7.410 11/26/28 176
The Money Store
Trust, Series 1997-
1(/1/)
95 7.360 05/16/01 95
-------
1,053
- -----------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(Cost $2,541) $ 2,535
- -----------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS--
9.5%
First Union-Lehman
Brothers-Bank of
America Commercial
Mortgage Trust,
Series 1998-C2,
Class A-2
$ 500 6.560% 11/18/08 $ 508
GE Capital Mortgage
Services, Inc.,
Series 1997-5, Class
A2
500 7.500 06/25/27 514
Morgan Stanley
Capital I,
Series 1998-WF1,
Class A2
355 6.550 12/15/07 362
Mortgage Capital
Funding,
Series 1998-MC1,
Class A2
540 6.663 01/18/08 549
Residential Asset
Securitization
Trust,
Series 1997-A8,
Class A-3
412 7.000 10/25/27 413
- -----------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS (Cost $2,325) $ 2,346
- -----------------------------------------------------
CORPORATE BONDS--8.7%
FOOD AND BEVERAGE--2.1%
Coca-Cola (The) Co.
$ 500 6.700% 10/15/36 $ 520
-------
INDUSTRIAL--1.8%
Penney (J.C.) & Co.,
Inc.
400 7.400 04/01/37 444
-------
</TABLE>
<TABLE>
<CAPTION>
Description
- -----------------------------------------
Principal Maturity
Amount Rate Date Value
- -----------------------------------------
<C> <S> <C> <C>
INSURANCE SERVICES--2.9%
Lumberman's Mutual
Casualty Co.
$ 300 9.150 07/01/26 $ 359
Prudential Insurance
Co.
300 8.300% 07/01/25 345
-------
704
-------
SANITARY SERVICES--1.9%
WMX Technologies,
Inc.
440 7.100 08/01/03 457
- -----------------------------------------
TOTAL CORPORATE BONDS (Cost
$2,087) $ 2,125
- -----------------------------------------
U.S. GOVERNMENT OBLIGATIONS--
54.2%
U.S. TREASURY BOND--24.1%
$ 5,750 6.625% 07/31/01 $ 5,920
-------
U.S. TREASURY NOTES--30.1%
1,700 6.750 05/31/99 1,720
5,160 7.500 02/15/05 5,689
-------
7,409
- -----------------------------------------
TOTAL U.S. GOVERNMENT OBLIGA-
TIONS
(Cost $13,299) $13,329
- -----------------------------------------
FLOATING RATE BANK NOTES--3.6%
Lloyds Bank PLC
$ 500 6.188% 06/15/98 $ 447
National Westminster
Bank
500 6.000 08/28/98 433
- -----------------------------------------
TOTAL FLOATING RATE BANK NOTES
(Cost $920) $ 880
- -----------------------------------------
SHORT-TERM INVESTMENTS--12.2%
Federal Home Loan
Bank Discount Note
$ 2,017 5.450% 06/01/98 $ 2,017
Marshall & Isley
Bank, Grand Cayman
981 5.688 06/01/98 981
- -----------------------------------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $2,997) $ 2,998
- -----------------------------------------
TOTAL INVESTMENTS--98.5%
(Cost $24,169) $24,213
- -----------------------------------------
Other assets, less liabili-
ties--1.5% 368
- -----------------------------------------
NET ASSETS--100.0% $24,581
- -----------------------------------------
- -----------------------------------------
</TABLE>
(/1/)At May 31, 1998, the Portfolio owned restricted securities valued at
approximately $350 (1.4% of net assets), with an aggregate cost basis of
$350. 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.
See accompanying notes to financial statements.
8
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- ------------------------------------------------------
Local
Currency/
Principal Maturity
Amount Rate Date Value
- ------------------------------------------------------
INTERNATIONAL BOND PORTFOLIO
<C> <S> <C> <C>
DEBT OBLIGATIONS--93.7%
AUSTRALIAN DOLLAR--2.8%
Commonwealth of
Australia
980 10.000% 10/15/02 $ 732
-------
BELGIAN FRANC--2.3%
Kingdom of Belgium
18,275 7.500 07/29/08 593
-------
BRITISH POUND STERLING--17.2%
Abbey National PLC
825 6.000 08/10/99 1,328
BAA PLC
525 7.875 02/10/07 930
Lloyds Bank PLC
800 7.375 03/11/04 1,360
Treasury of Great
Britain
400 8.000 06/07/21 848
-------
4,466
-------
CANADIAN DOLLAR--3.1%
Province of Ontario
1,050 7.250 09/27/05 794
-------
DANISH KRONE--6.8%
Kingdom of Denmark
10,100 8.000 03/15/06 1,768
-------
FRENCH FRANC--4.8%
Electricite de
France
6,200 8.600 04/09/04 1,246
-------
GERMAN MARK--15.9%
Federal Republic of
Germany
1,795 6.250 01/04/24 1,121
LKB Global Bond
1,500 6.000 05/10/99 856
Republic of Austria
1,670 8.000 01/30/02 1,045
Republic of Finland
1,920 5.500 02/09/01 1,109
-------
4,131
-------
ITALIAN LIRA--10.4%
Republic of Italy
4,000,000 8.500 04/01/04 2,693
-------
JAPANESE YEN--14.4%
Asian Development
Bank
90,000 5.000 02/05/03 770
European Bank for
Reconstruction and
Development
95,000 5.875 11/26/99 741
</TABLE>
<TABLE>
<CAPTION>
Description
- -----------------------------------------
Local
Currency/
Principal Maturity
Amount Rate Date Value
- -----------------------------------------
<C> <S> <C> <C>
International Bank
for Reconstruction
and Development
100,000 4.500% 03/20/03 $ 843
Japan Development
Bank
160,000 6.500 09/20/01 1,373
-------
3,727
-------
NETHERLANDS GUILDER--1.4%
Kingdom of the
Netherlands
700 5.750 02/15/07 371
-------
SPANISH PESETA--4.9%
Kingdom of Spain
120,000 11.300 01/15/02 970
35,000 10.000 02/28/05 299
-------
1,269
-------
SWEDISH KRONA--2.3%
Kingdom of Sweden
3,700 10.250 05/05/03 584
-------
UNITED STATES DOLLAR--7.4%
U.S. Treasury Bond
1,650 7.125 02/15/23 1,909
- -----------------------------------------
TOTAL DEBT OBLIGATIONS (Cost
$24,844) $24,283
- -----------------------------------------
SHORT-TERM INVESTMENT--3.4%
United States Dollar
Marshall & Isley
Bank, Grand Cayman
$ 872 5.688% 06/01/98 $ 872
- -----------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $872) $ 872
- -----------------------------------------
TOTAL INVESTMENTS--97.1%
(Cost $25,716) $25,155
- -----------------------------------------
Other assets, less liabili-
ties--2.9% 760
- -----------------------------------------
NET ASSETS--100.0% $25,915
- -----------------------------------------
- -----------------------------------------
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
Northern Institutional Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Description
- --------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- --------------------------------------------------------
SHORT-INTERMEDIATE BOND PORTFOLIO
<C> <S> <C> <C>
ASSET-BACKED SECURITIES--24.8%
AUTOMOTIVE--9.8%
Chevy Chase
Automobile
Receivables Trust,
Series 1991-4, Class
A
$ 4,047 6.250% 06/15/04 $ 4,056
Olympic Automobile
Receivables Trust,
Interest Only
Stripped Security,
Series 1995-D, Class
I
-- 7.187 01/15/99 137
Olympic Automobile
Receivables Trust,
Series 1995-A, Class
A
1,175 7.875 07/15/01 1,187
Series 1996-D, Class
A-4
4,075 6.050 08/15/02 4,087
Western Financial
Automobile Loan
Trust, Series 1994-
4, Class A-1
461 7.100 01/01/00 465
WFS Financial Owner
Trust,
Series 1997-A, Class
A-3
5,800 6.500 09/20/01 5,838
Series 1997-D, Class
A-3
5,000 6.250 03/20/02 5,028
--------
20,798
--------
HOME EQUITY LOANS--8.0%
Contimortgage Home
Equity Loan Trust,
Interest Only
Stripped Security,
Series 1998-1, Class
A10I
-- 6.612 09/15/00 4,668
Contimortgage Net
Interest Margin
Notes, Series 1998-
A, Class A(/1/)
3,167 7.920 03/16/28 3,159
Delta Funding Home
Equity Loan Trust,
Interest Only
Stripped Security,
Series 1997-2, Class
AIO
-- 6.500 06/25/27 2,560
IMC Excess Cashflow
Securities Trust,
Series 1997-A, Class
A
3,546 7.410 11/26/28 3,530
Lehman FHA Title I
Loan Trust,
Interest Only
Stripped Security,
Series 1995-6, Class
S
-- 11.328 11/25/16 1,372
The Money Store
Trust, Series 1997-
1(/1/)
1,556 7.360 05/16/01 1,555
--------
16,844
--------
FINANCIAL--7.0%
Associates Corp.
5,000 5.850 01/15/01 4,984
California Infrastructure
Pacific Gas & Electric,
Series 1997-1, Class A-3
7,250 6.150 06/25/02 7,287
Southern Pacific
Secured Asset Corp.,
Series 1997-2, Class
AIO
37,500 5.723 07/25/00 2,514
--------
14,785
- --------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(Cost $55,901) $ 52,427
- --------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Description
- ------------------------------------------
Principal Maturity
Amount Rate Date Value
- ------------------------------------------
<C> <S> <C> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS--
19.3%
AAMES Mortgage
Trust,
Interest Only
Stripped Security,
Series 1997-B, Class
AIO
$ -- 5.500% 07/15/00 $ 1,963
Donaldson, Lufkin &
Jenrette
Mortgage Acceptance
Corp.,
Interest Only
Stripped Security,
Series 1997-CF2,
Class CP
-- 5.727 11/15/04 6,150
Series 1994-Q8,
Class 2A1
-- 7.250 05/25/24 1,743
Financial Asset
Securitization,
Inc.,
Series 1997-NAMC,
Class FXA-3
6,074 7.350 05/25/27 6,106
GE Capital Mortgage
Services, Inc.,
Series 1994-15,
Class A-6
6,303 6.000 04/25/09 6,264
PNC Mortgage
Securities Corp.,
Series 1996-PR1,
Class A(/1/)
2,531 8.151 04/28/27 2,620
Prudential Home
Mortgage Securities
Co.,
Series 1994-1, Class
A-3
7,860 6.000 02/25/09 7,816
Residential Asset
Securitization
Trust,
Series 1997-A8,
Class A-3
4,121 7.000 10/25/27 4,129
Series 1998-A1,
Class A-6
4,466 13.068 03/25/28 4,025
- ------------------------------------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS (Cost $41,490) $ 40,816
- ------------------------------------------
CORPORATE BONDS--5.2%
BROKERAGE SERVICES--3.1%
Donaldson, Lufkin &
Jenrette, Inc.
Medium Term Note
$ 6,500 5.625% 02/15/16 $ 6,428
--------
ELECTRICAL UTILITY--2.1%
Tenaga Nasional
Berhad
4,800 7.200 04/29/07 4,497
- ------------------------------------------
TOTAL CORPORATE BONDS (Cost
$11,282) $ 10,925
- ------------------------------------------
U.S. GOVERNMENT AGENCIES--2.4%
COLLATERALIZED MORTGAGE OBLIGATIONS--
2.4%
FANNIE MAE REMIC TRUST--1.8%
Series 1996-M4,
Class A
$ 3,712 7.750% 03/17/17 $ 3,815
--------
FANNIE MAE REMIC TRUST
PRINCIPAL ONLY STRIPPED SECURITY--0.1%
Series 1994-9, Class
G
317 4.954 11/25/23 304
--------
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- ----------------------------------------
Principal Maturity
Amount Rate Date Value
- ----------------------------------------
<S> <C> <C> <C>
FREDDIE MAC REMIC TRUST
PRINCIPAL ONLY STRIPPED SECU-
RITY--0.5%
Series 1571, Class
BA
$ 1,009 8.793% 04/15/19 $ 997
- ----------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost $4,768) $ 5,116
- ----------------------------------------
U.S. GOVERNMENT OBLIGATIONS--
46.1%
U.S. TREASURY NOTES--46.1%
$ 9,000 6.625% 06/30/01 $ 9,257
55,000 6.625 07/31/01 56,624
31,000 6.250 01/31/02 31,639
- ----------------------------------------
TOTAL U.S. GOVERNMENT OBLIGA-
TIONS
(Cost $96,735) $ 97,520
- ----------------------------------------
SHORT-TERM INVESTMENT--0.5%
Marshall & Isley Bank, Grand
Cayman
<CAPTION>
$ 1,117 5.688% 06/01/98 $ 1,117
- ----------------------------------------
<S> <C> <C> <C>
TOTAL SHORT-TERM INVESTMENT
(Cost $1,117) $ 1,117
- ----------------------------------------
TOTAL INVESTMENTS--98.3%
(Cost $211,293) $207,921
- ----------------------------------------
Other assets, less liabili-
ties--1.7% 3,592
- ----------------------------------------
NET ASSETS--100.0% $211,513
- ----------------------------------------
- ----------------------------------------
</TABLE>
(/1/)At May 31, 1998, the Portfolio owned a restricted security valued at
approximately $7,334 (3.5% of net assets), with an aggregate cost basis of
$7,300. This security may not be publicly sold without registration under the
Securities Act of 1933. The value of this security is determined by valuations
supplied by a pricing service or brokers, if not available, in accordance with
procedures established by the Trustees.
See accompanying notes to financial statements.
11
<PAGE>
Northern Institutional Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Description
- ----------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- ----------------------------------------------------------
U.S. GOVERNMENT SECURITIES PORTFOLIO
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCIES--59.4%
COLLATERALIZED MORTGAGE OBLIGATIONS--
42.9%
FANNIE MAE REMIC TRUST--29.7%
Series 1991-127,
Class S
$ 1,615 12.080% 06/25/98 $ 1,633
Series 1998-M2,
Class CPI,
Interest Only
Stripped Security
-- 7.678 02/17/02 625
Series 1997-M1,
Class A
2,846 6.783 01/17/03 2,884
Series 1993-085,
Class PD
888 5.500 07/25/03 884
Series 1993-133,
Class EZ
3,958 5.850 02/25/17 3,934
Series 1996-M4,
Class A
2,474 7.750 03/17/17 2,543
Series 1992-2000,
Class E
723 6.250 06/25/17 721
Series 1998-14,
Class 14-F
118 9.200 12/25/17 119
Series 1997-20,
Class IO,
Interest Only
Stripped Security
-- 14.207 03/25/27 451
--------
13,794
--------
FREDDIE MAC--13.2%
Series 1227, Class G
3,641 9.371 05/15/99 3,745
Series 1296, Class H
1,781 11.572 07/15/99 1,886
Series 1520, Class F
499 5.650 09/15/04 497
--------
6,128
--------
19,922
--------
MORTGAGE-BACKED SECURITIES--6.2%
FANNIE MAE--5.5%
Pool #124945
$ 2,464 7.658% 01/01/31 $ 2,566
--------
FREDDIE MAC--0.7%
Pool #410092
298 7.797 11/01/24 307
--------
2,873
--------
</TABLE>
<TABLE>
<CAPTION>
Description
- ------------------------------------------
Principal Maturity
Amount Rate Date Value
- ------------------------------------------
<C> <S> <C> <C>
AGENCY OBLIGATIONS--10.3%
FANNIE MAE--5.8%
$ 2,750 5.250% 01/15/03 $ 2,692
--------
FREDDIE MAC--1.1%
500 7.130 06/30/05 501
--------
TENNESSEE VALLEY AUTHORITY NOTE--3.4%
1,500 6.235 07/15/45 1,566
--------
4,759
- ------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost $27,499) $ 27,554
- ------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--34.7%
U.S. TREASURY NOTES--34.7%
$ 4,750 6.625% 07/31/01 $ 4,890
1,250 6.250 01/31/02 1,276
9,000 7.500 02/15/05 9,923
- ------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGA-
TIONS
(Cost $15,889) $ 16,089
- ------------------------------------------
SHORT-TERM INVESTMENT--4.7%
Federal Home Loan
Bank Discount Note
$ 2,183 5.450% 06/01/98 $ 2,183
- ------------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $2,183) $ 2,183
- ------------------------------------------
TOTAL INVESTMENTS--98.8%
(Cost $45,571) $ 45,826
- ------------------------------------------
Other assets, less liabili-
ties--1.2% 556
- ------------------------------------------
NET ASSETS--100.0% $ 46,382
- ------------------------------------------
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- ------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- ------------------------------------------------------
U.S. TREASURY INDEX PORTFOLIO
<C> <S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--
97.1%
U.S. TREASURY NOTES--57.0%
$ 400 9.125% 05/15/99 $ 413
2,400 7.875 11/15/99 2,477
2,300 7.750 01/30/00 2,378
1,900 6.500 05/31/01 1,947
1,400 7.500 11/15/01 1,482
1,400 6.250 02/15/03 1,437
1,500 5.750 08/15/03 1,511
800 6.250 02/15/07 831
-------
12,476
-------
U.S. TREASURY BONDS--40.1%
1,000 11.750 02/15/01 1,153
435 13.875 05/15/11 658
660 14.000 11/15/11 1,020
490 13.250 05/15/14 783
1,450 7.250 05/15/16 1,669
900 8.125 05/15/21 1,148
700 8.000 11/15/21 884
1,400 6.250 08/15/23 1,464
-------
8,779
- ------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGA-
TIONS
(Cost $20,593) $21,255
- ------------------------------------------------------
SHORT-TERM INVESTMENT--1.7%
Federal Home Loan
Bank Discount Note
$ 364 5.450% 06/01/98 $ 364
- ------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $364) $ 364
- ------------------------------------------------------
TOTAL INVESTMENTS--98.8%
(Cost $20,957) $21,619
- ------------------------------------------------------
Other assets, less liabili-
ties--1.2% 274
- ------------------------------------------------------
NET ASSETS--100.0% $21,893
- ------------------------------------------------------
- ------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
13
<PAGE>
Northern Institutional Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
May 31, 1998
(All amounts in thousands, except net asset value per share)
(Unaudited)
<TABLE>
<CAPTION>
Short- U.S. U.S.
Intermediate International Intermediate Government Treasury
Bond Bond Bond Bond Securities Index
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in securi-
ties, at cost $531,431 $24,169 $25,716 $211,293 $45,571 $20,957
- ------------------------------------------------------------------------------------------------
Investments in securi-
ties, at value $546,680 $24,213 $25,155 $207,921 $45,826 $21,619
Cash and foreign curren-
cies -- 63 219 82 1 62
Receivables:
Interest 8,294 340 522 3,562 573 222
Fund shares sold 1,199 -- -- 8 -- --
Foreign tax reclaims -- -- 17 -- -- --
Administrator 8 9 21 21 2 --
Deferred organization
costs, net -- -- 13 -- -- --
Other assets 19 1 2 8 7 8
- ------------------------------------------------------------------------------------------------
TOTAL ASSETS 556,200 24,626 25,949 211,602 46,409 21,911
- ------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for:
Fund shares redeemed 292 1 -- 7 2 --
Accrued expenses:
Advisory fees 117 5 15 45 9 3
Administration fees 47 2 3 18 4 2
Transfer agent fees 9 -- -- 2 1 --
Custodian fees 6 2 7 3 2 2
Other liabilities 117 35 9 14 9 11
- ------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 588 45 34 89 27 18
- ------------------------------------------------------------------------------------------------
NET ASSETS $555,612 $24,581 $25,915 $211,513 $46,382 $21,893
- ------------------------------------------------------------------------------------------------
ANALYSIS OF NET ASSETS:
Paid-in capital $533,979 $24,507 $25,993 $213,836 $46,038 $21,592
Accumulated undistrib-
uted net investment in-
come 2,196 42 428 1,215 123 33
Accumulated net realized
gains (losses) on
investments, forward
foreign currency
contracts and foreign
currency transactions 4,188 (12) 63 (166) (34) (394)
Net unrealized
appreciation
(depreciation) on
investments, forward
foreign currency
contracts and foreign
currency transactions 15,249 44 (561) (3,372) 255 662
Net unrealized losses on
translation of other
assets and liabilities
denominated in foreign
currencies -- -- (8) -- -- --
- ------------------------------------------------------------------------------------------------
NET ASSETS $555,612 $24,581 $25,915 $211,513 $46,382 $21,893
- ------------------------------------------------------------------------------------------------
Total shares outstanding
(no par value), unlim-
ited shares authorized
Class A 23,378 1,226 1,290 10,462 2,106 948
Class C 2,690 -- -- -- 166 --
Class D 77 -- 7 59 37 93
- ------------------------------------------------------------------------------------------------
Net asset value, offer-
ing and redemption price
per share
Class A $ 21.25 $ 20.05 $ 19.99 $ 20.10 $ 20.09 $ 21.04
Class C $ 21.24 -- -- -- $ 20.07 --
Class D $ 21.22 -- $ 19.90 $ 20.05 $ 20.05 $ 21.00
- ------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
14
<PAGE>
Northern Institutional Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the Six Months Ended May 31, 1998
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Short- U.S. U.S.
Intermediate International Intermediate Government Treasury
Bond Bond Bond Bond Securities Index
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INTEREST INCOME $19,796 $549 $ 810(a) $10,023 $1,532 $ 839
- ------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 1,606 51 116 595 140 55
Administration fees 268 8 19 99 23 14
Transfer agent fees 52 1 1 11 4 3
Shareholder servicing
fees 42 -- -- 1 3 2
Custodian fees 28 8 25 12 11 10
Registration fees 21 10 19 23 3 3
Professional fees 19 2 5 6 4 4
Trustee fees 7 -- 2 3 2 2
Amortization of deferred
organization costs 2 2 8 2 5 1
Other 15 14 9 7 9 7
- ------------------------------------------------------------------------------------------------
TOTAL EXPENSES 2,060 96 204 759 204 101
Less: Voluntary waivers
of investment advisory
fees (937) (30) (26) (347) (82) (34)
Less: Expenses reimburs-
able by Administrator (92) (36) (54) (53) (33) (28)
- ------------------------------------------------------------------------------------------------
Net expenses 1,031 30 124 359 89 39
- ------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 18,765 519 686 9,664 1,443 800
Net realized gains
(losses) on:
Investment transactions 5,045 9 157 (124) 137 661
Foreign currency trans-
actions -- -- (20) -- -- --
Net change in unrealized
appreciation (deprecia-
tion) on investments,
forward foreign cur-
rency contracts and
foreign currency
transactions 304 105 (342) (3,429) (48) (277)
Net change in unrealized
losses on translation
of other assets and li-
abilities denominated
in foreign currencies -- -- (6) -- -- --
- ------------------------------------------------------------------------------------------------
NET INCREASE IN NET AS-
SETS RESULTING FROM OP-
ERATIONS $24,114 $633 $475 $6,111 $1,532 $1,184
- ------------------------------------------------------------------------------------------------
</TABLE>
(a) Net of $4 in non-reclaimable foreign withholding taxes.
See accompanying notes to financial statements.
15
<PAGE>
Northern Institutional Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended May 31, 1998 (Unaudited) and the Year Ended November
30, 1997
(All amounts in thousands)
<TABLE>
<CAPTION>
Intermediate
Bond Bond
Portfolio Portfolio
------------------ -----------------
1998 1997 1998 1997 (a)
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS:
Net investment income $ 18,765 $ 28,861 $ 519 $ 204
Net realized gains (losses) on
investments and foreign currency
transactions 5,045 3,869 9 (21)
Net change in unrealized appreciation
(depreciation) on investments and
foreign currency transactions 304 4,710 105 (61)
Net change in unrealized gains (losses)
on translations of other assets and
liabilities denominated in foreign
currencies -- -- -- --
- -------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 24,114 37,440 633 122
- -------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS
FROM:
Net investment income (15,206) (25,700) (496) (185)
Net realized gain on investment
transactions (2,645) -- -- --
- -------------------------------------------------------------------------------
Total distributions to Class A
shareholders (17,851) (25,700) (496) (185)
- -------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS C SHAREHOLDERS
FROM:
Net investment income (1,656) (2,140) -- --
Net realized gain on investment
transactions (296) -- -- --
- -------------------------------------------------------------------------------
Total distributions to Class C
shareholders (1,952) (2,140) -- --
- -------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS D SHAREHOLDERS
FROM:
Net investment income (45) (23) -- --
Net realized gain on investment
transactions (6) -- -- --
- -------------------------------------------------------------------------------
Total distributions to Class D
shareholders (51) (23) -- --
- -------------------------------------------------------------------------------
CLASS A SHARE TRANSACTIONS:
Proceeds from the sale of shares 76,128 155,583 16,460 11,875
Reinvested distributions 15,408 22,888 496 185
Cost of shares redeemed (59,053) (92,369) (4,509) --
- -------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from
Class A share transactions 32,483 86,102 12,447 12,060
- -------------------------------------------------------------------------------
CLASS C SHARE TRANSACTIONS:
Proceeds from the sale of shares 15,053 60,626 -- --
Reinvested distributions 1,952 2,140 -- --
Cost of shares redeemed (10,827) (21,561) -- --
- -------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from Class C share
transactions 6,178 41,205 -- --
- -------------------------------------------------------------------------------
CLASS D SHARE TRANSACTIONS:
Proceeds from the sale of shares 1,282 657 -- --
Reinvested distributions 51 22 -- --
Cost of shares redeemed (311) (306) -- --
- -------------------------------------------------------------------------------
Net increase in net assets resulting
from Class D share transactions 1,022 373 -- --
- -------------------------------------------------------------------------------
Net increase (decrease) 43,943 137,257 12,584 11,997
Net assets--beginning of period 511,669 374,412 11,997 --
- -------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $555,612 $511,669 $24,581 $11,997
- -------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED NET INVESTMENT
INCOME $ 2,196 $ 338 $ 42 $ 19
- -------------------------------------------------------------------------------
</TABLE>
(a) For the period August 1, 1997 (commencement of operations) through November
30, 1997.
See accompanying notes to financial statements.
16
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Short- U.S. Government
International Intermediate Securities U.S. Treasury
Bond Portfolio Bond Portfolio Portfolio Index Portfolio
- ---------------- ------------------ ------------------ ------------------
1998 1997 1998 1997 1998 1997 1998 1997
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 686 $ 1,608 $ 9,664 $ 13,180 $ 1,443 $ 5,026 $ 800 $ 1,856
137 97 (124) (623) 137 76 661 (56)
(342) (2,827) (3,429) (2,110) (48) (46) (277) 382
(6) 3 -- -- -- -- -- --
- -----------------------------------------------------------------------------
475 (1,119) 6,111 10,447 1,532 5,056 1,184 2,182
- -----------------------------------------------------------------------------
(295) (1,390) (8,459) (12,516) (1,217) (4,820) (767) (1,746)
(385) (520) (267) (414) -- -- -- --
- -----------------------------------------------------------------------------
(680) (1,910) (8,726) (12,930) (1,217) (4,820) (767) (1,746)
- -----------------------------------------------------------------------------
-- -- -- -- (89) (204) -- --
-- -- -- -- -- -- -- --
- -----------------------------------------------------------------------------
-- -- -- -- (89) (204) -- --
- -----------------------------------------------------------------------------
(1) (3) (46) (39) (14) (17) (56) (79)
(2) (1) (1) (1) -- -- -- --
- -----------------------------------------------------------------------------
(3) (4) (47) (40) (14) (17) (56) (79)
- -----------------------------------------------------------------------------
727 1,168 80,690 121,515 2,675 68,991 12,701 20,990
620 1,525 7,498 11,648 1,091 4,525 278 1,197
(1,752) (7,465) (76,664) (82,865) (4,733) (122,819) (27,221) (14,944)
- -----------------------------------------------------------------------------
(405) (4,772) 11,524 50,298 (967) (49,303) (14,242) 7,243
- -----------------------------------------------------------------------------
-- -- -- -- 594 1,328 -- --
-- -- -- -- 89 204 -- --
-- -- -- -- (485) (1,940) -- --
- -----------------------------------------------------------------------------
-- -- -- -- 198 (408) -- --
- -----------------------------------------------------------------------------
55 47 379 638 573 111 354 1,106
3 4 38 27 9 6 28 40
(4) (7) (114) (110) (146) (29) (154) (321)
- -----------------------------------------------------------------------------
54 44 303 555 436 88 228 825
- -----------------------------------------------------------------------------
(559) (7,761) 9,165 48,330 (121) (49,608) (13,653) 8,425
26,474 34,235 202,348 154,018 46,503 96,111 35,546 27,121
- -----------------------------------------------------------------------------
$25,915 $26,474 $211,513 $202,348 $46,382 $ 46,503 $ 21,893 $ 35,546
- -----------------------------------------------------------------------------
$ 428 $ 38 $ 1,215 $ 56 $ 123 $ -- $ 33 $ 56
- -----------------------------------------------------------------------------
</TABLE>
17
<PAGE>
Northern Institutional Funds
Fixed Income Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1998 (Unaudited) and the Years Ended November
30,
BOND PORTFOLIO
<TABLE>
<CAPTION>
Class A
-----------------------------------------------------------
1998 1997 1996 1995 1994 1993 (a)
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD $ 21.08 $ 20.77 $ 20.96 $ 18.29 $ 20.70 $ 20.00
Income from investment
operations:
Net investment income 0.74 1.34 1.29 1.17 1.42 1.42
Net realized and
unrealized gain (loss) 0.22 0.29 (0.19) 2.66 (2.21) 0.66
- --------------------------------------------------------------------------------------
Total income (loss) from
investment operations 0.96 1.63 1.10 3.83 (0.79) 2.08
- --------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHARE-
HOLDERS FROM:
Net investment income (0.67) (1.32) (1.26) (1.14) (1.46) (1.38)
Net realized gain (0.12) -- -- -- (0.15) --
Return of capital -- -- (0.03) (0.02) (0.01) --
- --------------------------------------------------------------------------------------
Total distributions to
shareholders (0.79) (1.32) (1.29) (1.16) (1.62) (1.38)
- --------------------------------------------------------------------------------------
Net increase (decrease) 0.17 0.31 (0.19) 2.67 (2.41) 0.70
- --------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 21.25 $ 21.08 $ 20.77 $ 20.96 $ 18.29 $ 20.70
- --------------------------------------------------------------------------------------
Total return (d) 4.65% 8.17% 5.57% 21.55% (4.04)% 10.60%
Ratio to average net as-
sets of (e):
Expenses, net of waiv-
ers and reimbursements 0.36% 0.36% 0.36% 0.36% 0.36% 0.36%
Expenses, before waiv-
ers and reimbursements 0.74% 0.77% 0.84% 0.84% 0.87% 0.92%
Net investment income,
net of waivers and re-
imbursements 7.01% 6.66% 6.39% 5.94% 7.31% 7.84%
Net investment income,
before waivers and re-
imbursements 6.63% 6.25% 5.91% 5.46% 6.80% 7.28%
Portfolio turnover rate 34.70% 76.30% 101.38% 74.19% 103.09% 89.06%
Net assets at end of pe-
riod (in thousands) $496,839 $460,514 $366,850 $286,301 $257,391 $245,112
- --------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class C Class D
---------------------------------- -----------------------------------------
1998 1997 1996 1995(b) 1998 1997 1996 1995 1994 (c)
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD $ 21.07 $ 20.78 $ 20.96 $20.21 $21.05 $20.76 $ 20.94 $18.29 $ 18.74
Income from investment
operations:
Net investment income 0.73 1.29 1.25 0.47 0.72 1.24 1.22 1.08 0.28
Net realized and
unrealized gain (loss) 0.20 0.28 (0.18) 0.74 0.20 0.30 (0.18) 2.66 (0.45)
- --------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 0.93 1.57 1.07 1.21 0.92 1.54 1.04 3.74 (0.17)
- --------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHARE-
HOLDERS FROM:
Net investment income (0.64) (1.28) (1.22) (0.45) (0.63) (1.25) (1.19) (1.09) (0.28)
Net realized gain (0.12) -- (0.03) (0.01) (0.12) -- (0.03) -- --
- --------------------------------------------------------------------------------------------------------
Total distributions to
shareholders (0.76) (1.28) (1.25) (0.46) (0.75) (1.25) (1.22) (1.09) (0.28)
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) 0.17 0.29 (0.18) 0.75 0.17 0.29 (0.18) 2.65 (0.45)
- --------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 21.24 $ 21.07 $ 20.78 $20.96 $21.22 $21.05 $ 20.76 $20.94 $ 18.29
- --------------------------------------------------------------------------------------------------------
Total return (d) 4.52% 7.88% 5.33% 6.08% 4.44% 7.74% 5.17% 21.06% (0.94)%
Ratio to average net as-
sets of (e):
Expenses, net of waiv-
ers and reimbursements 0.60% 0.60% 0.60% 0.60% 0.75% 0.75% 0.75% 0.75% 0.75%
Expenses, before waiv-
ers and reimbursements 0.98% 1.01% 1.08% 1.08% 1.13% 1.16% 1.23% 1.23% 1.26%
Net investment income,
net of waivers and
reimbursements 6.96% 6.39% 6.09% 5.59% 6.93% 6.27% 5.99% 5.48% 6.31%
Net investment income,
before waivers and
reimbursements 6.58% 5.98% 5.61% 5.11% 6.55% 5.86% 5.51% 5.00% 5.80%
Portfolio turnover rate 34.70% 76.30% 101.38% 74.19% 34.70% 76.30% 101.38% 74.19% 103.09%
Net assets at end of pe-
riod (in thousands) $57,142 $50,554 $ 7,342 $3,704 $1,631 $ 601 $ 220 $ 120 $ 15
- --------------------------------------------------------------------------------------------------------
</TABLE>
(a) For the period January 11, 1993 (commencement of operations) through
November 30, 1993.
(b) For the period July 3, 1995 (Class C shares issue date) through November
30, 1995.
(c) For the period September 14, 1994 (Class D shares issue date) through
November 30, 1994.
(d) Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the period. Total
return is not annualized for periods less than one year.
(e) Annualized for periods less than a full year.
See accompanying notes to financial statements.
18
<PAGE>
Northern Institutional Funds
Fixed Income Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1998 (Unaudited) and the Year Ended November
30,
INTERMEDIATE BOND PORTFOLIO
<TABLE>
<CAPTION>
Class A
------------------
1998 1997 (a)
- ----------------------------------------------------------------------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 19.89 $ 20.00
Income (loss) from investment operations:
Net investment income 0.57 0.38
Net realized and unrealized gain (loss) 0.16 (0.15)
- ----------------------------------------------------------------------------
Total income from investment operations 0.73 0.23
- ----------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (0.57) (0.34)
- ----------------------------------------------------------------------------
Total distributions to shareholders (0.57) (0.34)
- ----------------------------------------------------------------------------
Net increase (decrease) 0.16 (0.11)
- ----------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 20.05 $ 19.89
- ----------------------------------------------------------------------------
Total return (b) 3.75% 1.17%
Ratio to average net assets of (c):
Expenses, net of waivers and reimbursements 0.36% 0.36%
Expenses, before waivers and reimbursements 1.13% 2.28%
Net investment income, net of waivers and reimbursements 6.92% 5.87%
Net investment income, before waivers and reimbursements 6.15% 3.95%
Portfolio turnover rate 23.99% 56.99%
Net assets at end of period (in thousands) $24,581 $11,997
- ----------------------------------------------------------------------------
</TABLE>
(a) For the period August 1, 1997 (commencement of operations) through
November 30, 1997.
(b) Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the period. Total
return is not annualized for periods less than one year.
(c) Annualized for periods less than a full year.
See accompanying notes to financial statements.
19
<PAGE>
Northern Institutional Funds
Fixed Income Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1998 (Unaudited) and the Years Ended November
30,
INTERNATIONAL BOND PORTFOLIO
<TABLE>
<CAPTION>
Class A
--------------------------------------------
1998 1997 1996 1995 1994(a)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PE-
RIOD $ 20.13 $ 22.16 $ 21.74 $ 19.93 $ 20.00
Income from investment opera-
tions:
Net investment income 0.53 1.02 1.54 1.26 0.79
Net realized and unrealized gain
(loss) (0.14) (1.70) 0.43 2.28 0.01
- --------------------------------------------------------------------------------
Total income (loss) from invest-
ment operations 0.39 (0.68) 1.97 3.54 0.80
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net investment income (c) (0.23) (1.01) (1.55) (1.73) (0.87)
Net realized gain (0.30) (0.34) -- -- --
- --------------------------------------------------------------------------------
Total distributions to sharehold-
ers (0.53) (1.35) (1.55) (1.73) (0.87)
- --------------------------------------------------------------------------------
Net increase (decrease) (0.14) (2.03) 0.42 1.81 (0.07)
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 19.99 $ 20.13 $ 22.16 $ 21.74 $ 19.93
- --------------------------------------------------------------------------------
Total return (d) 1.89% (3.02)% 9.47% 18.20% 4.03%
Ratio to average net assets of
(e):
Expenses, net of waivers and re-
imbursements 0.96% 0.96% 0.96% 0.96% 0.96%
Expenses, before waivers and re-
imbursements 1.57% 1.52% 1.58% 1.47% 1.49%
Net investment income, net of
waivers and reimbursements 4.82% 5.61% 5.91% 5.92% 5.93%
Net investment income, before
waivers and reimbursements 4.21% 5.05% 5.29% 5.41% 5.40%
Portfolio turnover rate 14.50% 29.29% 33.89% 54.46% 88.65%
Net assets at end of period (in
thousands) $25,771 $26,383 $34,183 $32,673 $26,947
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class D
--------------------------------
1998 1997 1996 1995(b)
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $20.06 $22.14 $21.74 $22.17
Income from investment operations:
Net investment income 0.46 0.97 1.37 0.02
Net realized and unrealized gain (loss) (0.11) (1.72) 0.51 (0.08)
- ------------------------------------------------------------------------------
Total income (loss) from investment opera-
tions 0.35 (0.75) 1.88 (0.06)
- ------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (c) (0.21) (0.99) (1.48) (0.37)
Net realized gain (0.30) (0.34) -- --
- ------------------------------------------------------------------------------
Total distributions to shareholders (0.51) (1.33) (1.48) (0.37)
- ------------------------------------------------------------------------------
Net increase (decrease) (0.16) (2.08) 0.40 (0.43)
- ------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $19.90 $20.06 $22.14 $21.74
- ------------------------------------------------------------------------------
Total return (d) 1.70% (3.38)% 9.04% (0.30)%
Ratio to average net assets of (e):
Expenses, net of waivers and reimbursements 1.35% 1.35% 1.35% 1.35%
Expenses, before waivers and reimbursements 1.96% 1.91% 1.97% 1.86%
Net investment income, net of waivers and
reimbursements 4.43% 5.36% 5.67% 3.26%
Net investment income, before waivers and
reimbursements 3.82% 4.80% 5.05% 2.75%
Portfolio turnover rate 14.50% 29.29% 33.89% 54.46%
Net assets at end of period (in thousands) $ 144 $ 91 $ 52 $ 9
- ------------------------------------------------------------------------------
</TABLE>
(a) For the period March 28, 1994 (commencement of operations) through
November 30, 1994.
(b) For the period November 20, 1995 (Class D shares issue date) through
November 30, 1995.
(c) Distributions to shareholders from net investment income include amounts
relating to foreign currency transactions which are treated as ordinary
income for Federal income tax purposes.
(d) Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the period. Total
return is not annualized for periods less than one year.
(e) Annualized for periods less than a full year.
See accompanying notes to financial statements.
20
<PAGE>
Northern Institutional Funds
Fixed Income Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1998 (Unaudited) and the Years Ended November
30,
SHORT-INTERMEDIATE BOND PORTFOLIO
<TABLE>
<CAPTION>
Class A
---------------------------------------------------------
1998 1997 1996 1995 1994 1993 (a)
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD $ 20.36 $ 20.70 $ 20.73 $ 19.53 $ 20.33 $ 20.00
Income (loss) from in-
vestment operations:
Net investment income 0.97 1.46 1.14 1.02 0.97 0.85
Net realized and
unrealized gain (loss) (0.34) (0.29) (0.01) 1.19 (0.80) 0.31
- ------------------------------------------------------------------------------------
Total income from in-
vestment operations 0.63 1.17 1.13 2.21 0.17 1.16
- ------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHARE-
HOLDERS FROM:
Net investment income (0.86) (1.46) (1.16) (1.01) (0.97) (0.83)
Net realized gain (0.03) (0.05) -- -- -- --
- ------------------------------------------------------------------------------------
Total distributions to
shareholders (0.89) (1.51) (1.16) (1.01) (0.97) (0.83)
- ------------------------------------------------------------------------------------
Net increase (decrease) (0.26) (0.34) (0.03) 1.20 (0.80) 0.33
- ------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 20.10 $ 20.36 $ 20.70 $ 20.73 $ 19.53 $ 20.33
- ------------------------------------------------------------------------------------
Total return (c) 3.15% 5.95% 5.68% 11.58% 0.84% 5.90%
Ratio to average net as-
sets of (d):
Expenses, net of waiv-
ers and reimbursements 0.36% 0.36% 0.36% 0.36% 0.36% 0.36%
Expenses, before waiv-
ers and reimbursements 0.76% 0.81% 0.88% 0.91% 0.95% 1.00%
Net investment income,
net of waivers and re-
imbursements 9.75% 7.68% 5.83% 5.14% 4.84% 4.79%
Net investment income,
before waivers and re-
imbursements 9.35% 7.23% 5.31% 4.59% 4.25% 4.15%
Portfolio turnover rate 34.80% 48.49% 47.68% 54.68% 48.67% 19.48%
Net assets at end of pe-
riod (in thousands) $210,335 $201,457 $153,675 $158,678 $96,209 $107,550
- ------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class D
---------------------------------------
1998 1997 1996 1995 1994 (b)
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $20.31 $20.66 $20.71 $19.53 $19.82
Income (loss) from investment opera-
tions:
Net investment income 0.93 1.43 1.07 0.94 0.23
Net realized and unrealized gain
(loss) (0.33) (0.34) (0.02) 1.18 (0.29)
- -------------------------------------------------------------------------------
Total income from investment opera-
tions 0.60 1.09 1.05 2.12 (0.06)
- -------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (0.83) (1.39) (1.10) (0.94) (0.23)
Net realized gain (0.03) (0.05) -- -- --
- -------------------------------------------------------------------------------
Total distributions to shareholders (0.86) (1.44) (1.10) (0.94) (0.23)
- -------------------------------------------------------------------------------
Net increase (decrease) (0.26) (0.35) (0.05) 1.18 (0.29)
- -------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $20.05 $20.31 $20.66 $20.71 $19.53
- -------------------------------------------------------------------------------
Total return (c) 2.95% 5.54% 5.22% 11.09% (0.30)%
Ratio to average net assets of (d):
Expenses, net of waivers and reim-
bursements 0.75% 0.75% 0.75% 0.75% 0.75%
Expenses, before waivers and reim-
bursements 1.15% 1.20% 1.27% 1.30% 1.34%
Net investment income, net of waivers
and reimbursements 9.44% 7.48% 4.96% 4.85% 4.42%
Net investment income, before waivers
and reimbursements 9.04% 7.03% 4.44% 4.30% 3.83%
Portfolio turnover rate 34.80% 48.49% 47.68% 54.68% 48.67%
Net assets at end of period (in thou-
sands) $1,178 $ 891 $ 343 $ 13 $ 1
- -------------------------------------------------------------------------------
</TABLE>
(a) For the period January 11, 1993 (commencement of operations) through
November 30, 1993.
(b) For the period September 14, 1994 (Class D shares issue date) through
November 30, 1994.
(c) Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the period. Total
return is not annualized for periods less than one year.
(d) Annualized for periods less than a full year.
See accompanying notes to financial statements.
21
<PAGE>
Northern Institutional Funds
Fixed Income Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1998 (Unaudited) and the Years Ended November
30,
U.S. GOVERNMENT SECURITIES PORTFOLIO
<TABLE>
<CAPTION>
Class A
-------------------------------------------------------------
1998 1997 1996 1995 1994 1993 (a)
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD $ 19.99 $ 20.07 $ 20.08 $ 19.05 $ 20.07 $ 20.00
Income from investment
operations:
Net investment income 0.63 1.21 1.02 1.05 0.91 0.55
Net realized and
unrealized gain (loss) 0.04 (0.07) (0.01) 1.02 (1.02) 0.05
- ----------------------------------------------------------------------------------------
Total income (loss) from
investment operations 0.67 1.14 1.01 2.07 (0.11) 0.60
- ----------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHARE-
HOLDERS FROM:
Net investment income (0.57) (1.22) (1.02) (1.04) (0.91) (0.53)
- ----------------------------------------------------------------------------------------
Total distributions to
shareholders (0.57) (1.22) (1.02) (1.04) (0.91) (0.53)
- ----------------------------------------------------------------------------------------
Net increase (decrease) 0.10 (0.08) (0.01) 1.03 (1.02) 0.07
- ----------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 20.09 $ 19.99 $ 20.07 $ 20.08 $ 19.05 $ 20.07
- ----------------------------------------------------------------------------------------
Total return (d) 3.36% 5.93% 5.15% 11.18% (0.57)% 3.00%
Ratio to average net as-
sets of (e):
Expenses, net of waiv-
ers and reimbursements 0.36% 0.36% 0.36% 0.36% 0.36% 0.43%
Expenses, before waiv-
ers and reimbursements 0.85% 0.85% 0.94% 1.09% 1.12% 1.18%
Net investment income,
net of waivers and re-
imbursements 6.19% 5.86% 5.22% 5.43% 4.62% 4.18%
Net investment income,
before waivers and re-
imbursements 5.70% 5.37% 4.64% 4.70% 3.86% 3.43%
Portfolio turnover rate 42.20% 95.73% 119.75% 141.14% 45.55% 20.59%
Net assets at end of pe-
riod (in thousands) $42,301 $43,073 $92,351 $56,329 $25,293 $32,479
- ----------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class C Class D
------------------------- ---------------------------------------
1998 1997 1996 (b) 1998 1997 1996 1995 1994 (c)
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD $19.98 $20.06 $20.13 $19.94 $20.03 $20.04 $19.05 $19.43
Income from investment
operations:
Net investment income 0.60 1.14 0.91 0.53 1.16 0.96 0.96 0.22
Net realized and
unrealized gain (loss) 0.03 (0.04) (0.12) 0.11 (0.10) (0.03) 1.00 (0.38)
- ---------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 0.63 1.10 0.79 0.64 1.06 0.93 1.96 (0.16)
- ---------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHARE-
HOLDERS FROM:
Net investment income (0.54) (1.18) (0.86) (0.53) (1.15) (0.94) (0.97) (0.22)
- ---------------------------------------------------------------------------------------------
Total distributions to
shareholders (0.54) (1.18) (0.86) (0.53) (1.15) (0.94) (0.97) (0.22)
- ---------------------------------------------------------------------------------------------
Net increase (decrease) 0.09 (0.08) (0.07) 0.11 (0.09) (0.01) 0.99 (0.38)
- ---------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $20.07 $19.98 $20.06 $20.05 $19.94 $20.03 $20.04 $19.05
- ---------------------------------------------------------------------------------------------
Total return (d) 3.23% 5.67% 4.05% 3.21% 5.52% 4.77% 10.66% (0.90)%
Ratio to average net as-
sets of (e):
Expenses, net of waiv-
ers and reimbursements 0.60% 0.60% 0.60% 0.75% 0.75% 0.75% 0.75% 0.75%
Expenses, before waiv-
ers and reimbursements 1.09% 1.09% 1.18% 1.24% 1.24% 1.33% 1.48% 1.51%
Net investment income,
net of waivers and re-
imbursements 5.95% 5.63% 4.97% 5.80% 5.50% 4.83% 5.08% 4.65%
Net investment income,
before waivers and re-
imbursements 5.46% 5.14% 4.39% 5.31% 5.01% 4.25% 4.35% 3.89%
Portfolio turnover rate 42.20% 95.73% 119.75% 42.20% 95.73% 119.75% 141.14% 45.55%
Net assets at end of
year (in thousands) $3,332 $3,118 $3,535 $ 749 $ 312 $ 225 $ 67 $ 13
- ---------------------------------------------------------------------------------------------
</TABLE>
(a) For the period April 5, 1993 (commencement of operations) through November
30, 1993.
(b) For the period December 29, 1995 (Class C shares issue date) through
November 30, 1996.
(c) For the period September 15, 1994 (Class D shares issue date) through
November 30, 1994.
(d) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the period. Total
return is not annualized for periods less than one year.
(e) Annualized for periods less than a full year.
See accompanying notes to financial statements.
22
<PAGE>
Northern Institutional Funds
Fixed Income Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1998 (Unaudited) and the Years Ended November
30,
U.S. TREASURY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Class A
------------------------------------------------------
1998 1997 1996 1995 1994 1993 (a)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD $ 20.81 $ 20.60 $ 20.78 $ 18.77 $ 21.05 $ 20.00
Income (loss) from in-
vestment operations:
Net investment income 0.63 1.26 1.19 1.11 1.15 0.95
Net realized and
unrealized gain (loss) 0.23 0.20 (0.18) 2.01 (1.93) 1.02
- --------------------------------------------------------------------------------
Total income (loss) from
investment operations 0.86 1.46 1.01 3.12 (0.78) 1.97
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO SHARE-
HOLDERS FROM:
Net investment income (0.63) (1.25) (1.19) (1.11) (1.14) (0.92)
Net realized gain -- -- -- -- (0.36) --
- --------------------------------------------------------------------------------
Total distributions to
shareholders (0.63) (1.25) (1.19) (1.11) (1.50) (0.92)
- --------------------------------------------------------------------------------
Net increase (decrease) 0.23 0.21 (0.18) 2.01 (2.28) 1.05
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 21.04 $ 20.81 $ 20.60 $ 20.78 $ 18.77 $ 21.05
- --------------------------------------------------------------------------------
Total return (c) 4.18% 7.44% 5.10% 16.95% (3.80)% 9.94%
Ratio to average net as-
sets of (d):
Expenses, net of waiv-
ers and reimbursements 0.26% 0.26% 0.26% 0.26% 0.26% 0.26%
Expenses, before waiv-
ers and reimbursements 0.72% 0.82% 1.04% 0.89% 0.79% 0.83%
Net investment income,
net of waivers and
reimbursements 5.87% 6.36% 5.93% 5.09% 5.60% 5.11%
Net investment income,
before waivers and
reimbursements 5.41% 5.80% 5.15% 4.46% 5.07% 4.54%
Portfolio turnover rate 46.47% 72.61% 42.49% 80.36% 52.80% 77.75%
Net assets at end of pe-
riod (in thousands) $19,938 $33,839 $26,273 $17,674 $37,305 $71,456
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class D
-----------------------------------------
1998 1997 1996 1995 1994 (b)
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 20.77 $20.57 $20.75 $18.77 $18.80
Income (loss) from investment opera-
tions:
Net investment income 0.57 1.20 1.17 1.00 0.09
Net realized and unrealized gain
(loss) 0.25 0.18 (0.24) 2.03 (0.03)
- -------------------------------------------------------------------------------
Total income from investment opera-
tions 0.82 1.38 0.93 3.03 0.06
- -------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (0.59) (1.18) (1.11) (1.05) (0.09)
- -------------------------------------------------------------------------------
Total distributions to shareholders (0.59) (1.18) (1.11) (1.05) (0.09)
- -------------------------------------------------------------------------------
Net increase (decrease) 0.23 0.20 (0.18) 1.98 (0.03)
- -------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 21.00 $20.77 $20.57 $20.75 $18.77
- -------------------------------------------------------------------------------
Total return (c) 3.97% 7.03% 4.72% 16.43% 0.37%
Ratio to average net assets of (d):
Expenses, net of waivers and reim-
bursements 0.65% 0.65% 0.65% 0.65% 0.65%
Expenses, before waivers and reim-
bursements 1.11% 1.21% 1.43% 1.28% 1.18%
Net investment income, net of waiv-
ers and reimbursements 5.51% 6.07% 5.57% 5.41% 6.05%
Net investment income, before waiv-
ers and reimbursements 5.05% 5.51% 4.79% 4.78% 5.52%
Portfolio turnover rate 46.47% 72.61% 42.49% 80.36% 52.80%
Net assets at end of period (in
thousands) $ 1,955 $1,707 $ 848 $ 286 $ --
- -------------------------------------------------------------------------------
</TABLE>
(a) For the period January 11, 1993 (commencement of operations) through
November 30, 1993.
(b) For the period November 16, 1994 (Class D shares issue date) through
November 30, 1994.
(c) Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at net asset value at the end of the period. Total
return is not annualized for periods less than one year.
(d) Annualized for periods less than a full year.
See accompanying notes to financial statements.
23
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------------
BALANCED PORTFOLIO
<C> <S> <C>
COMMON STOCKS--53.8%
BANKING--1.5%
8,520 Banc One Corp. $ 470
4,700 BankAmerica Corp. 389
-------
859
-------
BROKERAGE AND FINANCIAL SERVICES--0.6%
11,000 Schwab (Charles) Corp. 363
-------
COMMUNICATIONS--4.1%
10,200 Ameritech Corp. 433
5,500 AT&T Corp. 335
6,000 Lucent Technologies, Inc. 426
9,000 Snyder Communications, Inc. 363
8,000 Tellabs, Inc.* 549
5,000 WorldCom, Inc.* 227
-------
2,333
-------
COMPUTERS AND OFFICE MACHINES--4.5%
6,950 Cisco Systems, Inc.* 526
5,000 HBO & Co. 288
6,600 Hewlett-Packard Co. 410
2,600 International Business Machines Corp. 305
9,500 Microsoft Corp. 806
4,000 PeopleSoft, Inc. 175
-------
2,510
-------
CONSUMER PRODUCTS--3.2%
3,500 Gillette Co. 410
7,800 Procter & Gamble Co. 655
28,050 Staples, Inc. 705
-------
1,770
-------
CREDIT INSTITUTIONS--0.8%
14,000 MBNA Corp. 444
-------
ELECTRONICS AND OTHER ELECTRICAL EQUIPMENT--4.6%
5,500 Emerson Electric Co. 334
14,900 General Electric Co. 1,242
4,700 Intel Corp. 336
5,300 Linear Technology Corp. 371
7,000 Solectron Corp. 290
-------
2,573
-------
FOOD AND BEVERAGE--3.3%
5,000 Coca-Cola (The) Co. 392
14,400 PepsiCo, Inc. 588
12,700 Philip Morris Cos., Inc. 475
8,200 Starbucks Corp.* 394
-------
1,849
-------
HEALTH SERVICES--4.6%
6,000 Cardinal Health, Inc. 535
24,950 Health Management Associates, Inc., Class A* 744
11,000 HEALTHSOUTH Corp.* 312
6,200 Johnson & Johnson Co. 428
10,400 Medtronic, Inc. 578
-------
2,596
-------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------
<C> <S> <C>
INDUSTRIAL INSTRUMENTS--0.4%
3,000 Becton, Dickinson & Co. $ 212
-------
INSURANCE SERVICES--2.9%
7,100 American International Group, Inc. 879
9,900 MBIA, Inc. 738
-------
1,617
-------
MORTGAGE AGENCIES--2.4%
14,900 Fannie Mae 892
9,500 Freddie Mac 432
-------
1,324
-------
OIL AND GAS--5.2%
6,000 Chevron Corp. 479
11,400 Exxon Corp. 804
12,800 Royal Dutch Petroleum Co. ADR 718
9,600 Schlumberger Ltd. ADR 749
3,000 Transocean Offshore, Inc. 148
-------
2,898
-------
PHARMACEUTICALS--4.4%
2,800 Bristol-Myers Squibb Co. 301
6,000 Elan Corp. PLC ADR* 367
4,900 Merck & Co., Inc. 574
4,900 Pfizer, Inc. 513
10,800 Warner-Lambert Co. 689
-------
2,444
-------
PROFESSIONAL SERVICE--4.9%
18,000 Accustaff* 593
9,000 Cendant Corp.* 195
10,400 Cintas Corp. 475
11,600 Computer Sciences Corp.* 602
10,000 Newell Co. 482
12,000 Paychex, Inc. 432
-------
2,779
-------
RECREATION AND LEISURE SERVICES--0.8%
6,500 Carnival Corp., Class A 440
-------
RETAIL--5.6%
7,800 Consolidated Stores Corp.* 298
6,000 Fastenal 297
10,650 Home Depot (The), Inc. 837
24,000 Walgreen Co. 844
15,500 Wal-Mart Stores, Inc. 855
-------
3,131
- ----------------------------------------------------
TOTAL COMMON STOCKS (Cost $19,127) $30,142
- ----------------------------------------------------
PREFERRED STOCK--1.7%
AGENCY--1.7%
1,000 Home Ownership Funding Corp. $ 976
- ----------------------------------------------------
TOTAL PREFERRED STOCK (Cost $1,000) $ 976
- ----------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
24
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Description Value
- -------------------------------------------------------------------------------
<C> <S> <C>
ASSET-BACKED SECURITIES--6.0%
AUTOMOTIVE--3.9%
Chevy Chase Auto Receivables Trust, Series 1997-4, Class A
$ 864 6.250%Due 06/15/04 $ 867
Olympic Automobile Receivable Trust, Series 1996-D, Class
A-4
600 6.050Due 08/15/02 602
Western Financial Grantor Trust, Series 1994-4, Class A-1
46 7.100Due 01/01/00 46
Series 1995-5, Class A-1
258 5.875Due 03/01/02 258
Western Financial Owner Trust, Series 1997-A, Class A-3
400 6.500Due 09/20/01 402
------
2,175
------
CREDIT CARD--1.8%
Circuit City Credit Card Master Trust, Series 1999-2, Class
A
1,000 8.000Due 11/15/03 1,030
------
HOME EQUITY LOANS--0.3%
The Money Store Trust, Series 1997-1(/1/)
181 7.360Due 05/16/01 181
- -------------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES (Cost $3,381) $3,386
- -------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS--4.1%
Donaldson, Lufkin & Jenrette
Mortgage Acceptance Corp.,
Series 1994-Q8, Class 2-A1
$ 222 7.250%Due 05/25/24 $ 230
Financial Asset Securitization, Inc.,
Series 1997-NAMC, Class FXA-3
900 7.350Due 04/25/27 905
First Union-Lehman Brothers-Bank of America Commercial
Mortgage Trust, Series 1998-C2, Class A2
510 6.560Due 11/18/08 518
Mortgage Capital Funding, Inc. Commercial Mortgage Backed
Security, Series 1998-MC1, Class A2
605 6.663Due 01/18/08 616
- -------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS (Cost $2,244) $2,269
- -------------------------------------------------------------------------------
CORPORATE AND FOREIGN GOVERNMENT BONDS--10.9%
FINANCIAL--4.5%
Finova Capital Corp.
$ 500 6.190%Due 10/20/99 $ 502
Lehman Brothers Holdings, Inc.
570 7.375Due 05/15/07, putable 05/01/00 605
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Description Value
- -------------------------------------------------------------
<C> <S> <C>
Lehman Brothers Holdings, Inc.
Medium Term Note
$ 305 6.900%Due 01/29/01 $ 311
Lumbermens Mutual Casualty Co.
350 9.150Due 07/01/26 419
Salomon, Inc. Medium Term Note
650 6.65Due 07/15/01 659
-------
2,496
-------
INDUSTRIAL--1.5%
Penney (J. C.), Inc.
830 6.900Due 08/15/26, putable 08/15/03 866
-------
SANITARY SERVICES--2.0%
WMX Technologies, Inc.
285 8.250Due 11/15/99 293
800 7.100Due 08/01/26, putable 08/01/03 832
-------
1,125
-------
SOVEREIGN--1.2%
Quebec Province, Canada Medium Term Note
600 7.220Due 07/22/36, putable 07/22/06 684
-------
UTILITY--1.7%
Tenaga Nasional Berhad
1,000 7.200Due 04/29/07, putable 04/29/02 936
- -------------------------------------------------------------
TOTAL CORPORATE AND FOREIGN GOVERNMENT BONDS (Cost
$5,989) $ 6,107
- -------------------------------------------------------------
U.S. GOVERNMENT AGENCIES--1.7%
FANNIE MAE REMIC TRUST--1.7%
Series 1991-37, Class G
$ 133 8.150%Due 08/25/05 $ 133
Series 1992-200, Class E
361 6.250Due 06/25/17 360
Series 1996-M4, Class A
464 7.750Due 03/17/17 477
- -------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES (Cost $947) $ 970
- -------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--13.3%
U.S. TREASURY BOND--1.7%
$ 800 7.125%Due 02/15/23 $ 926
-------
U.S. TREASURY NOTES--11.6%
245 6.750Due 05/31/99 248
175 6.250Due 05/31/00 177
1,325 7.750Due 02/15/01 1,397
900 6.625Due 06/30/01 926
2,525 6.625Due 07/31/01 2,600
200 6.250Due 02/15/03 205
875 7.500Due 02/15/05 965
-------
6,518
- -------------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $7,341) $ 7,444
- -------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
25
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Description Value
- --------------------------------------------------------
BALANCED PORTFOLIO--CONTINUED
<C> <S> <C>
FLOATING RATE BANK NOTES--3.5%
Lloyds Bank PLC
$1,100 6.188%Due 06/15/98 $ 984
National Westminster Bank
1,100 5.813Due 08/28/98 954
- --------------------------------------------------------
TOTAL FLOATING RATE BANK NOTES
(Cost $1,932) $ 1,938
- --------------------------------------------------------
SHORT-TERM INVESTMENT--3.5%
Marshall & Isley Bank, Grand Cayman
$1,976 5.688%Due 06/01/98 $ 1,976
- --------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT (Cost $1,976) $ 1,976
- --------------------------------------------------------
TOTAL INVESTMENTS--98.5%
(Cost $43,937) $55,208
- --------------------------------------------------------
Other assets, less liabilities--1.5% 850
- --------------------------------------------------------
NET ASSETS--100.0% $56,058
- --------------------------------------------------------
- --------------------------------------------------------
</TABLE>
*Non-income producing security.
(/1/)At May 31, 1998, the Portfolio owned restricted securities valued at
approximately $181 (0.3% of net assets), with an aggregate cost basis of $181.
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.
See accompanying notes to financial statements.
26
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------------
DIVERSIFIED GROWTH PORTFOLIO
<C> <S> <C>
COMMON STOCKS--99.2%
BANKING--4.5%
29,634 Banc One Corp. $ 1,633
15,000 BankAmerica Corp. 1,240
11,000 Citicorp 1,640
8,200 Wells Fargo & Co. 2,964
--------
7,477
--------
BROKERAGE SERVICES--1.0%
48,000 Schwab (Charles) Corp. 1,584
--------
COMMUNICATIONS--8.1%
48,000 Ameritech Corp. 2,037
30,000 AT&T Corp. 1,826
34,000 BellSouth Corp. 2,193
30,000 Lucent Technologies, Inc. 2,128
50,000 SBC Communications, Inc. 1,944
30,000 Tellabs, Inc.* 2,061
28,000 WorldCom Inc.* 1,274
--------
13,463
--------
COMPUTERS AND OFFICE MACHINES--7.6%
39,450 Cisco Systems, Inc.* 2,983
27,600 HBO & Co. 1,593
14,000 International Business Machines Corp. 1,643
63,600 Microsoft Corp. 5,394
22,000 PeopleSoft, Inc. 961
--------
12,574
--------
CONSUMER PRODUCTS--5.0%
13,000 Gillette Co. 1,523
39,700 Newell Co. 1,916
58,000 Philip Morris Cos., Inc. 2,168
31,500 Procter & Gamble Co. 2,644
--------
8,251
--------
CREDIT INSTITUTIONS--1.1%
58,400 MBNA Corp. 1,851
--------
ELECTRONICS AND OTHER ELECTRICAL EQUIPMENT--7.8%
25,000 Emerson Electric Co. 1,519
71,000 General Electric Co. 5,920
22,800 Intel Corp. 1,629
32,900 Linear Technology Corp. 2,301
40,000 Solectron Corp. 1,655
--------
13,024
--------
FOOD AND BEVERAGES--3.5%
28,000 Coca-Cola (The) Co. 2,195
40,800 PepsiCo, Inc. 1,665
42,000 Starbucks Corp.* 2,016
--------
5,876
--------
HEALTH SERVICES--6.2%
24,000 Cardinal Health, Inc. 2,139
122,500 Health Management Associates, Inc., Class A* 3,652
86,000 HEALTHSOUTH Corp.* 2,440
30,000 Johnson & Johnson Co. 2,072
--------
10,303
--------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
<C> <S> <C>
INDUSTRIAL INSTRUMENTS--1.6%
17,000 Becton, Dickinson & Co. $ 1,203
24,600 Hewlett-Packard Co. 1,528
--------
2,731
--------
INSURANCE SERVICES--5.3%
10,000 Allstate Corp. 941
35,850 American International Group, Inc. 4,439
46,800 MBIA, Inc. 3,489
--------
8,869
--------
MEDICAL PRODUCTS AND EQUIPMENT--2.1%
31,000 Elan Corp. PLC ADR* 1,897
28,000 Medtronic, Inc. 1,557
--------
3,454
--------
MORTGAGE AGENCIES--3.5%
65,700 Fannie Mae 3,934
42,000 Freddie Mac 1,911
--------
5,845
--------
OIL AND GAS--11.3%
32,000 Chevron Corp. 2,556
60,800 Exxon Corp. 4,286
54,700 Mobil Corp. 4,267
54,800 Royal Dutch Petroleum Co. ADR 3,072
48,800 Schlumberger Ltd. ADR 3,809
15,000 Transocean Offshore, Inc. 740
--------
18,730
--------
PHARMACEUTICALS--6.6%
19,000 Bristol-Myers Squibb Co. 2,042
24,000 Lilly (Eli) & Co. 1,475
24,400 Merck & Co., Inc. 2,856
27,000 Pfizer, Inc. 2,830
8,000 Schering-Plough Corp. 670
18,000 Warner-Lambert Co. 1,149
--------
11,022
--------
PROFESSIONAL SERVICES--8.3%
75,000 Accustaff, Inc.* 2,470
50,000 Cendant Corp.* 1,084
50,400 Cintas Corp. 2,303
44,800 Computer Sciences Corp.* 2,327
90,000 Paychex, Inc. 3,240
60,000 Snyder Communications, Inc. 2,419
--------
13,843
--------
RECREATION AND LEISURE SERVICES--3.1%
49,900 Carnival Corp., Class A 3,381
16,000 Disney (The Walt) Co. 1,810
--------
5,191
--------
RETAIL--12.6%
42,000 Consolidated Stores Corp.* 1,604
30,000 Fastenal Co. 1,485
57,050 Home Depot (The), Inc. 4,482
</TABLE>
See accompanying notes to financial statements.
27
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares/
Principal
Amount Description Value
- -----------------------------------------------------------
DIVERSIFIED GROWTH PORTFOLIO--CONTINUED
<C> <S> <C>
46,000 Kohl's Corp.* $ 2,188
143,775 Staples, Inc.* 3,612
72,700 Wal-Mart Stores, Inc. 4,012
100,000 Walgreen Co. 3,519
--------
20,902
- -----------------------------------------------------------
TOTAL COMMON STOCKS (Cost $101,203) $164,990
- -----------------------------------------------------------
U.S. GOVERNMENT OBLIGATION--0.1%
$230 U.S. Treasury Bill
5.030% Due 06/25/98 $228
- -----------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATION (Cost $228) $228
- -----------------------------------------------------------
SHORT-TERM INVESTMENT--0.2%
$253 Marshall & Isley Bank, Grand Cayman
5.688% Due 06/01/98 $253
- -----------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT (Cost $253) $253
- -----------------------------------------------------------
TOTAL INVESTMENTS--99.5%
(Cost $101,684) $165,471
- -----------------------------------------------------------
Other assets, less liabilities--0.5% 770
- -----------------------------------------------------------
NET ASSETS--100.0% $166,241
- -----------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
*Non-income producing security.
See accompanying notes to financial statements.
28
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------
EQUITY INDEX PORTFOLIO
<C> <S> <C>
COMMON STOCKS--98.4%
AGRICULTURE--0.1%
34,400 Pioneer Hi-Bred International, Inc. $ 1,309
--------
APPAREL--0.1%
9,400 Liz Claiborne, Inc. 476
17,200 VF Corp. 915
--------
1,391
--------
BANKING--8.1%
15,400 Ahmanson (H. F.) & Co. 1,174
90,853 Banc One Corp. 5,008
53,000 Bank of New York Co., Inc. 3,240
97,552 BankAmerica Corp. 8,066
20,400 BankBoston Corp. 2,150
13,800 Bankers Trust New York Corp. 1,704
20,100 BB&T Corp. 1,330
59,246 Chase Manhattan Corp. 8,054
64,300 Citicorp 9,589
22,200 Comerica, Inc. 1,460
32,775 Fifth Third Bancorp 1,614
40,907 First Chicago NBD Corp. 3,577
136,056 First Union Corp. 7,526
8,000 Golden West Financial Corp. 864
26,900 Huntington Bancshares, Inc. 881
61,800 KeyCorp 2,345
35,800 Mellon Bank Corp. 2,414
18,400 Mercantile Bancorporation 941
25,000 Morgan (J. P.) & Co., Inc. 3,105
132,260 National City Corp. 10,019
6,000 NationsBank Corp. 306
106,200 Norwest Corp. 4,129
42,900 PNC Bank Corp. 2,477
7,700 Republic New York Corp. 989
22,600 State Street Corp. 1,558
24,800 Summit Bancorp 1,243
29,700 SunTrust Banks, Inc. 2,346
103,617 U.S. Bancorp 4,054
29,000 Wachovia Corp. 2,322
12,166 Wells Fargo & Co. 4,398
--------
98,883
--------
BITUMINOUS COAL AND LIGNITE SURFACE MINING--
0.1%
39,718 Houston Industries, Inc. 1,137
1,100 NACCO Industries, Inc. 161
--------
1,298
--------
BROKERAGE AND FINANCIAL SERVICES--2.6%
65,400 American Express Co. 6,711
48,707 Associates First Capital Corp. 3,644
38,301 Fleet Financial Group, Inc. 3,141
35,600 Franklin Resources, Inc. 1,740
19,200 Green Tree Financial Corp. 772
14,300 Lehman Brothers, Inc.* 1,014
46,900 Merrill Lynch & Co., Inc. 4,198
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------------
<C> <S> <C> <C>
83,349 Morgan Stanley, Dean Witter, Discover & Co. $ 6,506
37,350 Schwab (Charles) Corp. 1,233
36,900 Synovus Financial Corp. 828
36,190 Washington Mutual, Inc. 2,556
--------
32,343
--------
CHEMICALS AND ALLIED PRODUCTS--11.2%
107,600 Abbott Laboratories 7,983
16,600 Air Products and Chemicals, Inc. 1,444
9,200 Allergan, Inc. 386
182,800 American Home Products Corp. 8,831
37,000 Amgen, Inc.* 2,238
39,400 Baxter International, Inc. 2,253
139,900 Bristol-Myers Squibb Co. 15,039
14,500 Clorox Co. 1,211
41,600 Colgate-Palmolive Co. 3,619
31,900 Dow Chemical Co. 3,090
159,200 du Pont (E. I.) de Nemours & Co. 12,258
11,075 Eastman Chemical Co. 742
18,200 Ecolab, Inc. 562
4,900 FMC Corp.* 375
10,100 Goodrich (B. F.) Co. 518
8,400 Great Lakes Chemical Corp. 336
13,600 Hercules, Inc. 599
15,400 International Flavors & Fragrances, Inc. 739
155,996 Lilly (Eli) & Co. 9,584
168,600 Merck & Co., Inc. 19,737
18,300 Morton International, Inc. 557
9,400 Nalco Chemical Co. 353
2,100 Octel Corp.* 46
181,900 Pfizer, Inc. 19,065
71,420 Pharmacia & Upjohn, Inc. 3,156
25,100 PPG Industries, Inc. 1,829
22,200 Praxair, Inc. 1,095
8,600 Rohm & Haas Co. 945
103,000 Schering-Plough Corp. 8,620
24,300 Sherwin-Williams Co. 808
14,100 Sigma-Aldrich Corp. 515
17,300 Union Carbide Corp. 864
10,400 W.R. Grace & Co.* 193
114,900 Warner-Lambert Co. 7,332
--------
136,922
--------
COMMUNICATIONS--9.3%
79,400 AirTouch Communications, Inc.* 3,781
25,900 Alltel Corp. 1,021
154,000 Ameritech Corp. 6,535
228,500 AT&T Corp. 13,910
109,280 Bell Atlantic Corp. 10,013
139,500 BellSouth Corp. 8,998
100,100 CBS Corp.* 3,178
17,400 Clear Channel Communications, Inc.* 1,668
49,100 Comcast Corp., Class A 1,683
23,100 Frontier Corp. 703
20,800 General Instrument Corp.* 495
</TABLE>
See accompanying notes to financial statements.
29
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------
EQUITY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
134,700 GTE Corp. $ 7,855
29,700 HBO & Co. 1,714
183,028 Lucent Technologies, Inc. 12,984
10,300 Mallinckrodt, Inc. 317
98,000 MCI Communications Corp. 5,240
37,000 Nextel Communications, Inc.* 872
13,400 Providian Corp. 853
257,912 SBC Communications, Inc. 10,026
60,500 Sprint Corp. 4,341
25,500 Tellabs, Inc.* 1,752
68,000 US West Communications Group 3,451
85,400 US West Media Group* 3,165
49,700 Viacom, Inc., Class B* 2,734
142,500 WorldCom, Inc.* 6,484
--------
113,773
--------
COMPUTERS AND OFFICE MACHINES--6.8%
9,700 Adobe Systems, Inc. 387
18,700 Apple Computer, Inc.* 498
30,900 Bay Networks, Inc.* 856
22,300 Cabletron Systems, Inc.* 287
10,200 Ceridian Corp.* 551
143,150 Cisco Systems, Inc.* 10,826
212,990 Compaq Computer Corp. 5,817
6,900 Data General Corp.* 105
91,800 Dell Computer Corp.* 7,565
20,600 Digital Equipment Corp.* 1,130
69,800 EMC Corp.* 2,892
21,800 Gateway 2000, Inc.* 982
136,800 International Business Machines Corp. 16,057
342,500 Microsoft Corp.* 29,048
36,100 Parametric Technology Co.* 1,107
40,700 Pitney Bowes, Inc. 1,913
34,100 Seagate Technology, Inc.* 789
26,400 Silicon Graphics, Inc.* 317
14,500 Tandy Corp. 642
49,900 3Com Corp.* 1,266
35,100 Unisys Corp.* 860
--------
83,895
--------
CONSTRUCTION--0.2%
31,300 Dover Corp. 1,174
24,700 Dresser Industries, Inc. 1,150
--------
2,324
--------
CONSUMER PRODUCTS--4.7%
18,600 Avon Products, Inc. 1,522
24,100 Fortune Brands, Inc. 926
78,800 Gillette Co. 9,229
189,200 Johnson & Johnson 13,067
78,184 Kimberly-Clark Corp. 3,875
341,000 Philip Morris Cos., Inc. 12,745
188,800 Procter & Gamble Co. 15,847
--------
57,211
--------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------
<C> <S> <C>
CREDIT INSTITUTIONS--0.6%
7,500 Beneficial Corp. $ 1,005
15,300 Countrywide Credit Industries, Inc. 708
15,100 Household International, Inc. 2,043
70,487 MBNA Corp. 2,234
16,100 MGIC Investment Corp. 965
--------
6,955
--------
ELECTRONICS AND ELECTRICAL EQUIPMENT--7.0%
19,900 Advanced Micro Devices, Inc.* 388
30,956 AMP, Inc. 1,176
12,430 Andrew Corp.* 273
51,500 Applied Materials, Inc.* 1,648
17,000 Cooper Industries, Inc. 1,094
16,600 DSC Communications Corp.* 284
62,400 Emerson Electric Co. 3,791
460,400 General Electric Co. 38,386
11,200 Harris Corp. 540
230,100 Intel Corp. 16,438
11,800 Kla-Tencor Corp.* 400
19,900 LSI Logic Corp.* 424
13,400 Maytag Corp. 676
29,800 Micron Technology, Inc.* 702
84,000 Motorola, Inc. 4,447
46,200 National Semiconductor Corp.* 3,130
23,100 National Service Industries, Inc. 375
73,200 Northern Telecom Ltd. 4,685
11,900 Raychem Corp. 448
11,100 Scientific-Atlanta, Inc. 245
71,300 Tele-Communications, Inc.* 2,446
54,900 Texas Instruments, Inc. 2,820
7,700 Thomas & Betts Corp. 411
10,600 Whirlpool Corp. 724
--------
85,951
--------
FOOD AND BEVERAGES--6.7%
68,900 Anheuser-Busch Cos., Inc. 3,165
80,429 Archer-Daniels-Midland Co. 1,518
40,500 Bestfoods 2,286
9,700 Brown-Forman Corp., Class B 559
64,200 Campbell Soup Co. 3,499
347,900 Coca-Cola (The) Co. 27,267
66,900 ConAgra, Inc. 1,957
5,100 Coors (Adolph) Co., Class B 191
22,300 General Mills, Inc. 1,522
51,400 Heinz (H. J.) Co. 2,727
20,100 Hershey Foods Corp. 1,392
57,800 Kellogg Co. 2,388
96,900 McDonalds Corp. 6,359
213,400 PepsiCo, Inc. 8,709
19,500 Quaker Oats Co. 1,125
15,100 Ralston-Ralston Purina Group 1,681
66,600 Sara Lee Corp. 3,921
50,100 Seagram (The) Co. Ltd. 2,201
21,330 Tricon Global Restaurants* 663
90,100 Unilever N.V. 7,112
25,900 UST, Inc. 690
16,300 Wrigley (Wm.) Jr. Co. 1,569
--------
82,501
--------
</TABLE>
See accompanying notes to financial statements.
30
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
<C> <S> <C>
FURNITURE--0.1%
23,200 Masco Corp. $ 1,305
--------
GENERAL BUILDING CONTRACTORS--0.2%
8,300 Centex Corp. 297
17,900 Honeywell, Inc. 1,502
5,400 Kaufman & Broad Home Corp. 139
--------
1,938
--------
GLASS, CLAY AND STONE PRODUCTS--0.2%
32,500 Corning, Inc. 1,282
22,400 Newell Co. 1,081
--------
2,363
--------
HEALTH SERVICES--1.2%
12,000 ALZA Corp.* 580
15,400 Cardinal Health, Inc. 1,373
91,095 Columbia/HCA Healthcare Corp. 2,978
21,200 Guidant Corp. 1,366
55,400 HEALTHSOUTH Corp.* 1,572
23,000 Humana, Inc.* 714
8,950 Manor Care, Inc. 282
65,900 Medtronic, Inc. 3,666
11,800 St. Jude Medical, Inc.* 422
43,100 Tenet Healthcare Corp.* 1,509
--------
14,462
--------
HEAVY CONSTRUCTION--0.2%
11,800 Fluor Corp. 563
5,600 Foster Wheeler Corp. 142
36,900 Halliburton Co. 1,748
--------
2,453
--------
INDUSTRIAL INSTRUMENTS--2.1%
8,000 Bard (C. R.), Inc. 277
7,800 Bausch & Lomb, Inc. 388
17,200 Becton, Dickinson & Co. 1,217
15,700 Biomet, Inc. 453
27,400 Boston Scientific Corp.* 1,747
45,700 Eastman Kodak Co. 3,262
146,300 Hewlett-Packard Co. 9,089
11,800 Johnson Controls, Inc. 702
6,100 Millipore Corp. 204
6,800 Perkin-Elmer Corp. 466
6,300 Polaroid Corp. 256
47,700 Raytheon Co. 2,609
7,000 Tektronix, Inc. 268
10,600 United States Surgical Corp. 421
45,800 Xerox Corp., Inc. 4,706
--------
26,065
--------
INSURANCE SERVICES--4.9%
20,857 Aetna, Inc. 1,631
60,365 Allstate Corp.* 5,682
35,670 American General Corp. 2,394
98,712 American International Group, Inc. 12,222
23,600 Aon Corp. 1,512
23,900 Chubb Corp. 1,902
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
<C> <S> <C>
31,200 CIGNA Corp. $ 2,137
23,100 Cincinnati Financial Corp. 970
26,500 Conseco, Inc. 1,236
11,000 General Re Corp. 2,419
16,600 Hartford Financial Services Group, Inc. 1,827
14,937 Jefferson-Pilot Corp. 855
14,400 Lincoln National Corp. 1,294
16,200 Loews Corp. 1,470
23,900 Marsh & McLennan Cos., Inc. 2,093
13,800 MBIA, Inc. 1,029
10,200 Progressive Corp. 1,406
19,900 SAFECO Corp. 925
32,544 St. Paul Cos., Inc. 1,444
27,500 SunAmerica, Inc. 1,337
19,700 Torchmark Corp. 845
8,800 Transamerica Corp. 1,012
161,337 Travelers Group, Inc. 9,842
26,500 United Healthcare Corp. 1,696
19,500 UNUM Corp. 1,083
-------
60,263
-------
JEWELRY AND PRECIOUS METALS--0.0%
5,500 Jostens, Inc. 139
-------
LUMBER AND WOOD PRODUCTS--0.0%
15,400 Louisiana-Pacific Corp. 307
-------
MACHINERY--1.3%
23,800 Baker Hughes, Inc. 857
13,400 Black & Decker Corp. 782
3,400 Briggs & Stratton Corp. 154
14,000 Brunswick Corp. 440
10,600 Case Corp. 613
52,400 Caterpillar, Inc. 2,879
5,500 Cincinnati Milacron, Inc. 165
5,300 Cummins Engine Co., Inc. 276
35,100 Deere & Co. 1,821
6,100 General Signal Corp. 251
6,600 Harnischfeger Industries, Inc. 208
23,250 Ingersoll-Rand Co. 1,048
23,900 Tenneco, Inc. 995
22,400 Thermo Electron Corp.* 787
8,900 Timken (The) Co. 335
80,500 Tyco International Ltd. 4,458
-------
16,069
-------
MANUFACTURING--0.2%
3,900 Aeroquip-Vickers, Inc. 241
8,000 Alberto-Culver Co., Class B 238
16,700 ITT Industries, Inc. 616
3,000 Pulte Corp. 160
11,606 Sealed Air Corp.* 621
-------
1,876
-------
MERCHANDISE GENERAL--0.1%
8,600 Snap-On, Inc. 377
12,600 Stanley Works (The) 599
-------
976
-------
METAL MINING--0.3%
52,400 Barrick Gold Corp. 1,009
31,800 Battle Mountain Gold Co. 169
13,150 Cyprus Amax Minerals Co. 209
</TABLE>
See accompanying notes to financial statements.
31
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------------
EQUITY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
27,200 Freeport-McMoRan Copper & Gold, Inc., Class B $ 456
29,700 Homestake Mining Co. 323
23,500 Inco, Ltd. 338
21,997 Newmont Mining Corp. 549
34,800 Placer Dome, Inc. 433
----------
3,486
----------
METAL PRODUCTS--0.2%
27,527 Allegheny Teledyne, Inc. 640
4,200 Ball Corp. 166
6,500 Crane Co. 342
8,500 McDermott International, Inc. 325
15,625 Parker-Hannifin Corp. 642
----------
2,115
----------
MORTGAGE AGENCIES--1.1%
149,200 Fannie Mae 8,933
97,800 Freddie Mac 4,450
----------
13,383
----------
NATURAL GAS--0.7%
13,400 Apache Corp. 458
14,900 Coastal Corp. 1,050
7,800 Columbia Gas System, Inc. 658
13,400 Consolidated Natural Gas Co. 758
2,800 Eastern Enterprises 112
46,200 Enron Corp. 2,316
6,700 NICOR, Inc. 259
4,300 ONEOK, Inc. 168
11,700 Pacific Enterprises 445
4,900 Peoples Energy Corp. 181
15,500 Sonat, Inc. 607
57,800 Williams (The) Cos., Inc. 1,875
----------
8,887
----------
OFFICE EQUIPMENT--0.0%
18,900 Ikon Office Solutions, Inc. 400
----------
OIL AND GAS--4.8%
8,400 Anadarko Petroleum Corp. 554
24,852 Burlington Resources, Inc. 1,047
92,400 Chevron Corp. 7,380
346,900 Exxon Corp. 24,456
7,100 Helmerich & Payne, Inc. 179
47,700 Occidental Petroleum Corp. 1,318
14,900 Oryx Energy Co.* 347
12,200 Rowan Cos., Inc.* 312
301,600 Royal Dutch Petroleum Co. 16,908
70,000 Schlumberger Ltd. 5,464
35,676 Union Pacific Resources Group, Inc. 722
7,700 Western Atlas, Inc.* 667
----------
59,354
----------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
PACKAGING AND CONTAINER PRODUCTS--0.2%
18,100 Crown Cork & Seal Co., Inc. $ 939
21,700 Owens-Illinois, Inc.* 975
----------
1,914
----------
PAPER PRODUCTS--1.2%
14,400 Avery Dennison Corp. 746
7,500 Bemis Co., Inc. 316
7,900 Boise Cascade Co. 264
13,500 Champion International Corp. 648
29,400 Fort James Corp. 1,406
13,000 Georgia-Pacific Corp. 834
42,535 International Paper Co. 1,957
14,800 Mead Corp. 461
57,500 Minnesota Mining & Manufacturing Co. 5,326
14,004 Stone Container Corp.* 249
8,000 Temple-Inland, Inc. 470
9,800 Union Camp Corp. 536
14,350 Westvaco Corp. 409
28,100 Weyerhaeuser Co. 1,428
----------
15,050
----------
PERSONAL SERVICES--0.6%
14,800 Block (H&R), Inc. 651
114,011 Cendant Corp.* 2,473
35,200 Hilton Hotels Corp. 1,107
35,900 Marriott International, Inc. 1,248
35,400 Service Corp. International 1,447
15,600 Willamette Industries, Inc. 535
----------
7,461
----------
PETROLEUM--2.4%
12,900 Amerada Hess Corp. 697
137,000 Amoco Corp. 5,728
10,600 Ashland, Inc. 528
45,100 Atlantic Richfield Co. 3,557
6,700 Kerr-McGee Corp. 424
110,300 Mobil Corp. 8,603
6,700 Pennzoil Co. 387
37,000 Phillips Petroleum Co. 1,852
10,100 Sun Co., Inc. 429
77,100 Texaco, Inc. 4,453
34,700 Unocal Corp. 1,236
40,600 USX--Marathon Group 1,421
----------
29,315
----------
PRINTING AND PUBLISHING--1.4%
10,200 American Greetings Corp. 484
11,400 Deluxe Corp. 383
20,500 Donnelley (RR) & Sons Co. 923
13,500 Dow Jones & Co., Inc. 650
39,900 Gannett Co., Inc. 2,631
11,200 Knight-Ridder, Inc. 639
13,900 McGraw Hill Cos., Inc. 1,087
7,400 Meredith Corp. 294
12,200 Moore Corp. Ltd. 177
</TABLE>
See accompanying notes to financial statements.
32
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------------
<C> <S> <C>
13,500 New York Times Co., Class A $ 952
81,400 Time Warner, Inc. 6,334
12,400 Times Mirror Co., Class A 794
17,300 Tribune Co. 1,157
----------
16,505
----------
PROFESSIONAL SERVICES--1.6%
6,600 Autodesk, Inc. 280
42,000 Automatic Data Processing, Inc. 2,672
76,825 Computer Associates International, Inc. 4,033
21,900 Computer Sciences Corp.* 1,137
21,100 Equifax, Inc. 768
60,200 First Data Corp. 2,002
17,700 Interpublic Group of Cos., Inc. 1,050
49,400 Novell, Inc.* 519
22,800 Omnicom 1,067
138,400 Oracle Corp.* 3,270
10,800 Ryder System, Inc. 368
3,500 Shared Medical Systems Corp. 255
53,100 Sun Microsystems, Inc.* 2,127
----------
19,548
----------
RECREATION AND LEISURE SERVICES--1.1%
95,000 Disney (The Walt) Co. 10,747
10,000 Harcourt General, Inc. 545
14,200 Harrah's Entertainment, Inc.* 355
10,400 King World Productions, Inc.* 265
40,845 Mattel, Inc. 1,547
25,200 Mirage Resorts, Inc.* 524
----------
13,983
----------
RESEARCH AND CONSULTING SERVICES--0.2%
22,800 Cognizant Corp. 1,214
23,900 Dun & Bradstreet (The) Corp. 807
6,400 EG&G, Inc. 202
----------
2,223
----------
RETAIL--5.6%
34,500 Albertson's, Inc. 1,598
38,400 American Stores Co. 957
21,400 Autozone, Inc.* 711
13,900 Circuit City Stores, Inc. 589
15,200 Consolidated Stores Corp.* 580
30,103 Costco Companies, Inc.* 1,742
26,900 CVS Corp. 1,888
20,900 Darden Restaurants, Inc. 323
61,500 Dayton-Hudson Corp. 2,852
15,600 Dillard Department Stores, Inc., Class A 656
29,500 Federated Department Stores, Inc.* 1,528
55,700 Gap, Inc. 3,008
8,400 Giant Food, Inc., Class A 361
5,300 Great Atlantic & Pacific Tea Co., Inc. 170
18,775 Hasbro, Inc. 718
102,950 Home Depot (The), Inc. 8,088
68,600 Kmart Corp.* 1,329
35,900 Kroger Co.* 1,541
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
<C> <S> <C>
31,700 Limited, Inc. (The) $ 1,054
5,300 Longs Drug Stores, Inc. 161
24,600 Lowe's Cos., Inc. 1,948
32,500 May Department Stores Co. 2,090
5,200 Mercantile Stores Co., Inc. 409
40,900 Nike, Inc., Class B 1,881
10,900 Nordstrom, Inc. 785
35,200 Penney (J.C.) Co., Inc. 2,528
8,900 Pep Boys-Manny, Moe & Jack 198
7,800 Reebok International Ltd.* 224
36,300 Rite Aid Corp. 1,300
55,100 Sears, Roebuck & Co. 3,406
8,500 SUPERVALU, Inc. 356
22,700 TJX Cos., Inc. 1,061
39,900 Toys "R" Us, Inc.* 1,057
315,900 Wal-Mart Stores, Inc. 17,434
69,700 Walgreen Co. 2,453
18,600 Wendy's International, Inc. 459
20,900 Winn-Dixie Stores, Inc. 850
19,000 Woolworth Corp.* 375
----------
68,668
----------
RUBBER AND PLASTICS--0.7%
5,700 Armstrong World Industries, Inc. 479
10,900 Cooper Tire & Rubber Co. 258
22,000 Goodyear Tire & Rubber Co. 1,581
83,400 Monsanto Co. 4,618
21,100 Rubbermaid, Inc. 688
8,600 Tupperware Corp. 232
----------
7,856
----------
SANITARY SERVICES--0.3%
27,300 Browning-Ferris Industries, Inc. 971
46,200 Laidlaw, Inc. 572
63,980 Waste Management, Inc. 2,079
----------
3,622
----------
SERVICE INDUSTRY MACHINERY--0.0%
17,566 Pall Corp. 348
----------
STEEL PRODUCTS--0.5%
32,000 Alcan Aluminum Ltd. 912
24,300 Aluminum Co. of America 1,686
14,600 Armco, Inc.* 79
5,600 ASARCO, Inc. 127
15,900 Bethlehem Steel Corp.* 195
20,287 Engelhard Corp. 422
6,900 Inland Steel Industries, Inc. 198
12,400 Nucor Corp. 639
7,500 Owens Corning 281
8,300 Phelps Dodge Corp. 506
10,400 Reynolds Metals Co. 603
12,100 USX--U.S. Steel Group 434
13,375 Worthington Industries, Inc. 236
----------
6,318
----------
</TABLE>
See accompanying notes to financial statements.
33
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------------
EQUITY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
TEXTILES--0.1%
10,300 Fruit of the Loom, Inc., Class A* $ 370
5,000 Russell Corp. 136
2,800 Springs Industries, Inc., Class A 157
---------
663
---------
TRANSPORTATION PARTS AND EQUIPMENT--4.0%
79,400 AlliedSignal, Inc. 3,394
140,600 Boeing Co. 6,696
91,200 Chrysler Corp. 5,073
14,800 Dana Corp. 771
10,100 Eaton Corp. 907
8,900 Echlin, Inc. 423
5,100 Fleetwood Enterprises, Inc. 204
168,800 Ford Motor Co. 8,757
17,700 General Dynamics Corp. 787
99,500 General Motors Corp. 7,158
35,100 Illinois Tool Works, Inc. 2,317
27,354 Lockheed Martin Corp. 3,070
10,220 Navistar International Corp.* 309
9,400 Northrop Grumman Corp. 1,008
10,920 PACCAR, Inc. 603
28,300 Rockwell International Corp. 1,557
23,100 Textron, Inc. 1,714
17,300 TRW, Inc. 927
32,800 United Technologies Corp. 3,083
---------
48,758
---------
TRANSPORTATION SERVICES--1.1%
12,800 AMR Corp.* 1,970
21,965 Burlington Northern Santa Fe Corp. 2,186
30,700 CSX Corp. 1,462
10,500 Delta Air Lines, Inc. 1,208
20,660 Federal Express Corp.* 1,325
53,000 Norfolk Southern Corp. 1,660
31,050 Southwest Airlines Co. 829
34,800 Union Pacific Corp. 1,683
12,800 US Airways Group, Inc.* 896
---------
13,219
---------
UTILITIES--2.3%
19,300 Ameren Corp. 755
26,700 American Electric Power Co. 1,211
20,800 Baltimore Gas & Electric Co. 633
21,100 Carolina Power & Light Co. 865
29,900 Central & South West Corp. 790
22,210 Cinergy Corp. 718
33,100 Consolidated Edison Co. of New York, Inc. 1,417
27,200 Dominion Resources, Inc. 1,080
20,400 DTE Energy Co. 807
50,643 Duke Energy Co. 2,918
53,700 Edison International 1,584
34,300 Entergy Corp. 903
</TABLE>
<TABLE>
<CAPTION>
Shares/
Principal
Amount Description Value
- -------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C> <C>
32,400 FirstEnergy Corp.* $ 962
25,600 FPL Group, Inc. 1,573
17,800 GPU, Inc. 685
20,300 Niagara Mohawk Power Corp.* 251
10,500 Northern States Power Co. 597
53,600 Pacific Gas & Electric Co. 1,688
41,700 PacifiCorp 962
31,300 Peco Energy Co. 884
23,300 PP&L Resources, Inc. 516
32,600 Public Service Enterprise Group, Inc. 1,078
97,100 Southern Co. 2,579
34,712 Texas Utilities Co. 1,371
30,500 Unicom Corp. 1,048
----------
27,875
----------
WHOLESALE--0.2%
25,175 Genuine Parts Co. 854
7,000 Grainger (W.W.), Inc.* 739
4,100 Potlatch Corp. 180
47,800 Sysco Corp. 1,114
----------
2,887
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $761,511) $1,206,810
- -------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATION--0.1%
U.S. Treasury Bill #
$ 1,015 5.044%Due 06/25/98 $ 1,005
- -------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATION
(Cost $1,005) $ 1,005
- -------------------------------------------------------------------------------------
SHORT-TERM INVESTMENT--1.4%
Marshall & Isley Bank, Grand Cayman
$16,802 5.688%Due 06/01/98 $ 16,802
- -------------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $16,802) $ 16,802
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS--99.9%
(Cost $779,318) $1,224,617
- -------------------------------------------------------------------------------------
Other assets, less liabilities--0.1% 1,675
- -------------------------------------------------------------------------------------
NET ASSETS--100.0% $1,226,292
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Number of Contract Contract Contract Unrealized
Type Contracts Amount Position Expiration Loss
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
S&P 500 64 $17,453 Long 06/19/98 $(497)
- -------------------------------------------------------------------------------------
</TABLE>
OPEN FUTURES CONTRACTS:
*Non-income producing security.
#Securities pledged to cover margin requirements for open futures contracts.
See accompanying notes to financial statements.
34
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------
FOCUSED GROWTH PORTFOLIO
<C> <S> <C>
COMMON STOCKS--99.6%
BANKING--5.6%
23,250 Banc One Corp. $ 1,282
13,950 BankAmerica Corp. 1,153
46,500 MBNA Corp. 1,473
27,500 Norwest Corp. 1,069
32,500 State Street Corp. 2,240
--------
7,217
--------
COMMUNICATIONS--8.3%
30,000 Ameritech Corp. 1,273
15,800 BellSouth Corp. 1,019
30,000 Chancellor Media Corp.* 1,254
27,500 Lucent Technologies, Inc. 1,951
12,000 SBC Communications, Inc. 467
28,000 Tellabs, Inc.* 1,924
20,000 US West Media Group* 741
45,000 WorldCom, Inc.* 2,048
--------
10,677
--------
COMPUTERS AND OFFICE MACHINES--8.0%
33,050 Cisco Systems, Inc.* 2,500
37,200 Computer Sciences Corp. 1,932
9,000 International Business Machines Corp. 1,056
33,000 Microsoft Corp.* 2,799
32,500 Peoplesoft, Inc. 1,420
5,000 Xerox Corp.* 514
--------
10,221
--------
CONSUMER PRODUCTS--5.3%
16,700 Gillette Co. 1,956
40,000 Newell Co. 1,930
28,050 Philip Morris Cos., Inc. 1,048
21,800 Procter & Gamble Co. 1,830
--------
6,764
--------
ELECTRONICS AND OTHER ELECTRICAL EQUIPMENT--
6.4%
60,000 General Electric Co. 5,003
12,000 Intel Corp. 857
18,000 Linear Technology Corp. 1,259
27,700 Solectron Corp.* 1,146
--------
8,265
--------
FINANCIAL--1.2%
46,000 Charles Schwab (The) Corp. 1,518
--------
FOOD AND BEVERAGES--4.3%
30,000 Coca-Cola (The) Co. 2,351
45,000 PepsiCo, Inc. 1,837
27,500 Starbucks Corp.* 1,320
--------
5,508
--------
FURNITURE & FIXTURES--1.0%
23,300 Masco Corp. 1,311
--------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------------
<C> <S> <C>
HEALTH SERVICES--8.3%
12,500 Becton, Dickinson & Co. $ 884
23,300 Cardinal Health, Inc. 2,077
18,600 Guidant Corp. 1,199
16,200 HBO & Co. 935
74,400 Health Management Associates, Inc., Class A* 2,218
55,800 HEALTHSOUTH Corp.* 1,583
31,000 Medtronic, Inc. 1,724
--------
10,620
--------
INDUSTRIAL INSTRUMENTS--0.7%
14,800 Hewlett-Packard Co. 919
--------
INSURANCE SERVICES--5.5%
19,300 American International Group, Inc. 2,390
23,300 MBIA, Inc. 1,737
15,000 MGIC Investment Corp. 899
10,500 Progressive Corp. 1,448
10,000 Travelers Group, Inc. 610
--------
7,084
--------
MACHINERY--0.6%
15,000 Tyco International Ltd. 831
--------
MORTGAGE AGENCIES--2.7%
37,200 Fannie Mae 2,227
27,900 Freddie Mac 1,270
--------
3,497
--------
NATURAL GAS--1.3%
32,500 Enron Corp. 1,629
--------
OFFICE EQUIPMENT--0.6%
27,167 Steelcase, Inc., Class A 810
--------
OIL AND GAS--2.9%
32,500 Exxon Corp. 2,291
18,500 Mobil Corp. 1,443
--------
3,734
--------
OIL FIELD MACHINERY AND EQUIPMENT--3.4%
23,300 Halliburton Co. 1,104
29,400 Schlumberger Ltd. ADR 2,295
20,000 Transocean Offshore, Inc. 986
--------
4,385
--------
PHARMACEUTICALS--9.3%
13,900 Bristol-Myers Squibb Co. 1,494
27,900 Elan Corp. PLC ADR* 1,707
10,500 Lily (Eli) & Co. 645
13,500 Merck & Co., Inc. 1,580
21,000 Pfizer, Inc. 2,201
31,000 Schering-Plough Corp. 2,594
27,000 Warner-Lambert Co. 1,723
--------
11,944
--------
</TABLE>
See accompanying notes to financial statements.
35
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares/
Principal
Amount Description Value
- ----------------------------------------------------------
FOCUSED GROWTH PORTFOLIO -- CONTINUED
<C> <S> <C>
PROFESSIONAL SERVICES--7.9%
79,500 Accustaff, Inc.* $ 2,619
41,800 Cendant Corp. 907
31,800 Cintas Corp. 1,453
48,750 Paychex, Inc. 1,755
41,500 Snyder Communications, Inc. 1,673
20,000 Sterling Commerce, Inc.* 794
32,265 Young & Rubicam, Inc.* 903
--------
10,104
--------
RECREATION AND LEISURE SERVICES--2.7%
34,700 Carnival Corp., Class A 2,351
10,000 Disney (The Walt) Co. 1,131
--------
3,482
--------
RETAIL--12.9%
20,000 Abercrombie & Fitch Co., Class A* 845
33,000 Consolidated Stores Corp.* 1,260
10,000 Dayton-Hudson Corp. 464
23,200 Fastenal Co. 1,148
40,900 Home Depot (The), Inc. 3,213
48,500 Kohl's Corp.* 2,307
111,500 Staples, Inc.* 2,802
65,000 Wal-Mart Stores, Inc. 3,587
26,000 Walgreen Co. 915
--------
16,541
--------
TELECOMMUNICATIONS--0.7%
17,500 CIENA Corp.* 910
- ----------------------------------------------------------
TOTAL COMMON STOCKS (Cost $97,349) $127,971
- ----------------------------------------------------------
SHORT-TERM INVESTMENT--0.3%
Marshall & Isley Bank, Grand Cayman
$413 5.688%Due 06/01/98 $ 413
- ----------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT (Cost $413) $ 413
- ----------------------------------------------------------
TOTAL INVESTMENTS--99.9%
(Cost $97,762) $128,384
- ----------------------------------------------------------
Other assets, less liabilities--0.1% 113
- ----------------------------------------------------------
NET ASSETS--100.0% $128,497
- ----------------------------------------------------------
- ----------------------------------------------------------
</TABLE>
*Non-income producing security.
See accompanying notes to financial statements.
36
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
<C> <S> <C>
COMMON STOCKS--94.0%
AUSTRALIA--2.1%
600 Aberfoyle Ltd. $ 1
4,200 Amcor Ltd. 19
1,800 Ashton Mining Ltd. 1
180 Ashton Mining Ltd. Rights* 0
1,938 Australian Gas Light Co. Ltd. 14
5,100 Australian National Industries Ltd. 3
7,499 Boral Ltd. 15
1,500 Brambles Industries Ltd. 30
13,300 Broken Hill Proprietary Co. Ltd. 114
3,500 Burns Philp & Co. Ltd. 0
5,572 Coca-Cola Amatil Ltd. 41
7,615 Coles Myer Ltd. 34
6,400 Crown Ltd.* 3
6,600 CSR Ltd. 19
2,600 David Jones Ltd. 3
1,300 Delta Gold NL 1
1,934 Email Ltd. 4
922 Faulding (F.H.) & Co. Ltd. 4
11,100 Foster's Brewing Group Ltd. 24
3,209 Futuris Corp. Ltd. 3
8,084 General Property Trust Units 14
4,118 Gio Australia Holdings Ltd. 12
8,352 Goodman Fielder Ltd. 12
1,857 Great Central Mines Ltd. 2
2,600 Hardie (James) Industries Ltd. 8
408 Homestake Mining Co. 4
1,700 Leighton Holdings Ltd. 6
1,600 Lend Lease Corp. Ltd. 34
10,697 M.I.M. Holdings Ltd. 6
1,200 Metal Manufactures Ltd. 2
9,200 National Australia Bank 128
1,600 Newcrest Mining Ltd. 2
12,725 News Corp. Ltd. 79
10,470 Normandy Mining Ltd. 10
4,674 North Ltd. 11
1,750 Orica Ltd. 12
6,700 Pacific Dunlop Ltd. 12
5,800 Pioneer International Ltd. 15
2,420 QBE Insurance Group Ltd. 10
4,315 QCT Resources Ltd. 3
1,400 Resolute Ltd. 1
1,400 RGC Ltd. 2
2,100 Rio Tinto Ltd. 25
800 Rothmans Holdings Ltd. 6
3,900 Santos Ltd. 13
2,800 Schroders Property Fund 5
1,200 Smith (Howard) Ltd. 8
724 Sons of Gwalia Ltd. 2
4,126 Southcorp Holdings Ltd. 15
2,300 Stockland Trust Group 6
99 Stockland Trust Group (New)* 0
2,000 TABCORP Holdings Ltd. 11
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------------------
<C> <S> <C>
33,400 Telstra Corp. Ltd. $ 79
7,800 Westfield Trust 16
316 Westfield Trust (New)* 1
12,400 Westpac Banking Corp. Ltd. 82
7,455 WMC Ltd. 23
-------
1,010
-------
AUSTRIA--0.4%
19 Austria Mikro Systeme International A.G. 1
168 Austrian Airlines Osterreichische Luftverkehrs A.G.* 6
446 Bank Austria A.G. 40
63 Bank Austria A.G. (Partial Certificates) 5
30 Bau Holdings A.G. 2
70 Bohler-Uddeholm A.G. 5
12 BWT A.G. 2
45 EA-Generali A.G. 16
135 Flughafen Wien A.G. 7
26 Lenzing 2
78 Mayr-Melnhof Karton A.G. 6
58 Oesterreichische Brau-Beteiligungs A.G. 4
200 Oesterreichische Elektrizitaetswirtschafts A.G., Class 24
175 OMV A.G. 25
90 Radex-Heraklith Industriebeteiligungs A.G. 5
72 Steyr-Daimler-Puch A.G. 2
33 Universale-Bau A.G. 1
97 VA Technologies A.G. 13
56 Wienerberger Baustoffindustrie A.G. 14
-------
180
-------
BELGIUM--1.5%
100 Barco Industries 26
18 Bekaert N.V. 14
220 Cimenteries CBR Cementbedrisven 24
100 Compagnie Maritime Belge S.A. 8
435 Delhaize-Le Lion 30
400 Electrabel S.A. 100
300 Fortis A.G. 86
100 Generale de Banque S.A. 73
100 Gevaert N.V. Warrants* 1
50 Glaverbel S.A. 7
200 Groupe Bruxelles Lambert S.A. 44
97 Kredietbank N.V. 68
160 Petrofina S.A. 66
118 Royale Belge 46
625 Solvay S.A. 46
625 Tractebel 83
150 Union Miniere Group 10
-------
732
-------
DENMARK--1.0%
12 Aarhus Oliefabrik A/S, Class A 1
12 Aarhus Oliefabrik A/S, Class B, Limited Voting 1
20 Aktieselskabet Korn-OG Foderstof Kompagniet A/S 1
64 Bang & Olufsen Holdings A/S, Class B 4
</TABLE>
See accompanying notes to financial statements.
37
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO--CONTINUED
<S> <C> <C>
DENMARK--Continued
231 Carlsberg A/S, Class A $ 16
178 Carlsberg A/S, Class B 12
5 Dampskibsselskabet af 1912 A/S, Class B 49
5 Dampskibsselskabet Svendborg A/S, Class B 68
385 Danisco A/S 24
300 Den Danske Bank 38
85 Det Ostasiatiske Kompagni A/S* 1
280 FLS Industries A/S, Class B 8
140 GN Store Nord A/S 4
156 International Service System A/S, Class B 8
6 Lauritzen (J.) Holding A/S 1
29 NKT Holdings A/S 2
459 Novo-Nordisk A/S, Class B 74
45 Radiometer A/S, Class B 2
41 Ratin A/S, Class A 8
129 Ratin A/S, Class B 26
195 SAS Danmark A/S 4
41 Sophus Berendsen A/S, Class A 2
129 Sophus Berendsen A/S, Class B 5
164 Superfos A/S 5
799 Tele Danmark A/S 75
342 Unidanmark A/S, Class A 28
------
467
------
FINLAND--1.7%
200 Amer Group Ltd.* 4
300 Cultor Oy 5
100 Instrumentarium Group, Class A 7
1,200 Kemira Oy 13
900 Kesko 15
8,700 Merita Ltd., Class A 55
100 Metra Oy, Class A 3
500 Metra Oy, Class B 16
6,000 Nokia AB, Class A 395
2,100 Nokia AB, Class K 136
1,300 Outokumpu Oy, Class A 18
100 Pohjola Insurance Group, Class A 5
100 Pohjola Insurance Group, Class B 6
700 Sampo Insurance Co. Ltd., Class A 33
300 Stockman AB, Class A 3
200 Stockman AB, Class A Rights* 8
600 Stockman AB, Class B 1
400 Stockman AB, Class B Rights* 13
3,300 Upm-Kymmene Corp. 96
------
832
------
FRANCE--9.5%
250 Accor S.A. 69
1,050 Air Liquide 207
1,170 Alcatel Alsthom 250
27 Assurances Generales de France S.A. Warrants* 0
2,300 AXA-UAP 262
1,400 Banque Nationale de Paris 120
10 Bongrain S.A. 5
175 Bouygues 32
200 Canal Plus 36
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
275 Carrefour S.A. $ 168
500 Casino Guichard-Perrachon S.A. 36
50 Chargeurs S.A. 4
100 Club Mediterranee* 10
587 Compagnie de Saint Gobain 116
50 Compagnie Generale de Geophysique S.A.* 8
75 Compagnie Parisienne de Reescompte 6
30 Comptoirs Modernes 17
555 Danone 150
50 Dollfus-Mieg & Cie S.A. 1
1,900 Elf Aquitaine S.A. 264
245 Eridania Beghin-Say S.A. 54
60 Essilor International 26
10 Europe 1 Communication 2
5,575 France Telecom S.A. 312
100 Groupe GTM 9
550 Havas S.A. 43
100 Imetal S.A. 14
490 L"OREAL 243
1,200 Lafarage S.A. 122
800 Lagardere S.C.A. 35
180 Legrand S.A. 50
570 LVMH Moet Hennessy Louis Vuitton 120
890 Michelin, Class B 55
250 Moulinex* 7
100 Natexis 7
100 Nord-Est S.A. 2
1,200 Paribas 122
50 Pathe 9
350 Pernod-Ricard 26
185 Pinault Printemps-Redoute S.A. 152
150 Primagaz Cie 13
170 Promodes 83
325 PSA Peugeot Citroen 64
2,350 Rhone-Poulenc, Class A 130
30 Sagem S.A. 23
700 Sanofi S.A. 82
1,000 Schneider S.A. 85
350 SEITA 15
200 Sidel S.A. 16
125 Simco S.A. 11
100 Skis Rossignol S.A. 2
350 Societe BIC S.A. 27
25 Societe Eurafrance S.A. 15
640 Societe Generale, Class A 127
100 Societe Technip 14
300 Sodexho Alliance S.A. 55
150 Sommer-Allibert 8
817 Suez Lyonnaise des Eaux 139
1,700 Total S.A., Class B 211
800 Thomson CSF 32
50 Union du Credit-Bail Immobilier 7
50 Union du Immobiliere de France 4
1,600 Usinor Sacilor 27
450 Valeo S.A. 42
880 Vivendi 177
300 Vivendi Warrants* 1
--------
4,581
--------
</TABLE>
See accompanying notes to financial statements.
38
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------------
<C> <S> <C>
GERMANY--10.1%
300 Adidas-Salomon A.G. $ 53
200 AGIV A.G. 6
1,610 Allianz A.G. 509
300 AMB Aachener & Muenchener Beteilgungs-A.G. 35
150 Axa Colonia Konzern A.G. 20
4,250 BASF A.G. 197
4,800 Bayer A.G. 230
1,700 Bayer Hypotheken-und Wechsel-Bank A.G. 107
2,100 Bayerische Vereinsbank A.G. 176
550 Beiersdorf A.G. 34
350 Bilfinger & Berger Bau A.G. 13
50 Brau Und Brunnen A.G. 6
900 Continental A.G. 27
3,550 Daimler-Benz A.G. 358
600 Degussa A.G. 38
3,650 Deutsche Bank A.G. 314
2,500 Deutsche Lufthansa A.G. (Registered) 63
14,800 Deutsche Telekom A.G. 397
400 Deutz A.G.* 4
200 Douglas Holdings A.G. 11
3,400 Dresdner Bank A.G. 191
400 FAG Kugelfischer Georg Schaefer A.G. 7
370 Heidelbergerzement A.G. 37
500 Hochtief A.G. 23
70 Karstadt A.G. 37
70 Linde A.G. 52
50 Man A.G. 20
285 Mannesmann A.G. 279
1,100 Merck KGaA 43
1,460 Metro A.G. 93
550 Muenchener Ruckversicherungs-Gesellschaft A.G. 250
120 Preussag A.G. 44
100 Rheinmetall A.G. 3
2,200 RWE A.G. 117
450 SAP A.G. 233
150 Schering A.G. 18
450 SGL Carbon A.G. 53
3,950 Siemens A.G. 255
260 Thyssen A.G. 68
3,400 VEBA A.G. 223
200 Viag A.G. 112
190 Volkswagen A.G. 154
-------
4,910
-------
HONG KONG--1.7%
10,000 Applied International Holdings* 0
8,800 Bank of East Asia Ltd.* 12
22,000 Cathay Pacific Airways 15
15,000 Cheung Kong Holdings Ltd. 81
16,000 China Light & Power Co. Ltd. 69
12,000 Chinese Estates Holdings 3
2,000 Dickson Concepts International Ltd 3
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
<C> <S> <C>
5,000 Elec & Eltek International Holdings Ltd. $ 1
6,000 Giordano International Ltd. 1
9,000 Hang Lung Development Co. 9
12,400 Hang Seng Bank Ltd. 93
7,500 Hong Kong & Shanghai Hotels Ltd. 4
1,200 Hong Kong Aircraft Engineering Co. Ltd. 2
27,720 Hong Kong China Gas Co. Ltd. 36
1,260 Hong Kong China Gas Co. Ltd. Warrants* 0
77,200 Hong Kong Telecommunications Ltd. 139
28,000 Hopewell Holdings Ltd. 4
25,000 Hutchinson Whampoa Ltd. 131
700 Hysan Development Co. Ltd. 0
7,000 Hysan Development Co. Ltd. Warrants* 7
2,900 Johnson Electric Holdings Ltd. 11
3,000 Kumagai Gum Ltd. 2
4,000 Miramar Hotel & Investment Ltd. 4
12,651 New World Development Co. Ltd. 30
12,000 Oriental Press Group 1
4,000 Peregrine Investments Holdings Ltd. 2
2,000 Playmates Toys Holdings 0
26,400 Regal Hotels International 4
11,000 Shangri-La Asia Ltd. 7
12,000 Shun Tak Holdings Ltd. 1
20,741 Sino Land Co. 7
12,000 South China Morning Post Holdings Ltd. 7
2,000 Stelux Holdings 0
15,000 Sun Hung Kai Properties Ltd. 73
10,000 Swire Pacific Ltd. 37
5,000 Tai Cheung Holdings Ltd. 1
12,000 Tan Chong International Ltd.* 0
3,000 Television Broadcasts Ltd. 7
2,000 Varitronix International Ltd. 4
15,000 Wharf Holdings Ltd. 19
1,500 Wing Lung Bank 4
----
831
----
IRELAND--0.5%
5,626 Allied Irish Banks PLC 75
272 Clondalkin Group PLC Units 3
290 Crean (James) PLC Units 1
2,506 CRH PLC 36
536 DCC PLC 5
1,912 Fyffes PLC 5
1,245 Greencore Group PLC 7
1,631 Independent Newspapers PLC 10
168 Irish Continental Group PLC 3
2,083 Irish Life PLC 17
611 Irish Permanent PLC 7
288 Jurys Hotel Group PLC 3
1,065 Kerry Group PLC, Class A 15
1,300 Ryanair Holdings PLC 9
7,046 Smurfit (Jefferson) Group PLC 24
1,489 Tullow Oil PLC* 4
4,737 Waterford Wedgewood PLC Units 7
----
231
----
</TABLE>
See accompanying notes to financial statements.
39
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
ITALY--4.5%
7,000 Assicurazioni Generali $ 225
12,000 Banca Commerciale Italiana 71
10,000 Banca Intesa S.p.A. 62
4,000 Banca Intesa-RNC S.p.A. 14
2,000 Banco Popolare di Milano 18
1,000 Benetton Group S.p.A. 22
2,000 Bulgari S.p.A. 12
1,000 Burgo (Cartiere) S.p.A. 9
2,000 Cementir S.p.A. 3
19,000 Credito Italiano 106
4,000 Edison S.p.A. 38
52,000 ENI S.p.A. 368
1,000 Falck Acciaierie & Ferriere Lombarde 7
24,400 Fiat S.p.A. 109
5,300 Fiat-RNC S.p.A. 14
4,000 Impregilo S.p.A. 4
5,000 Istituto Bancario San Paolo di Torino 78
4,000 Istituto Mobiliare Italiano S.p.A. 69
26,000 Istituto Nationale Assicurazioni 81
1,000 Italcementi S.p.A. 10
1,000 Italcementi-RNC S.p.A. 5
5,000 Italgas S.p.A. 23
1,000 La Rinascente S.p.A. 10
3,000 Magneti Marelli 8
3,000 Magneti Marelli Rights* 1
8,000 Mediaset S.p.A. 51
3,000 Mediobanca S.p.A. 40
1,000 Mondadori (Arnoldo) Editore S.p.A. 12
33,000 Montedison S.p.A. 46
6,000 Montedison-RNC S.p.A. 6
17,240 Olivetti Group* 25
10,000 Parmalat Finanziaria S.p.A. 21
12,000 Pirelli S.p.A. 40
1,000 Pirelli-RNC S.p.A. 3
3,000 Riunione Adriatic di Sicurta S.p.A. 48
1,000 Riunione Adriatica di Sicurta-RNC S.p.A. 10
1,000 Sirti S.p.A. 6
5,000 Snia BPD S.p.A. 7
1,000 Snia BPD-RNC S.p.A. 1
1,000 Societa Assicuratrice Industriale S.p.A. 13
43,000 Telecom Italia Mobile S.p.A. 254
10,000 Telecom Italia Mobile-RNC S.p.A. 36
24,111 Telecom Italia S.p.A. 182
5,488 Telecom Italia-RNC S.p.A. 30
-------
2,198
-------
JAPAN--19.3%
3,000 77 Bank 24
900 Acom Co. Ltd. 40
550 Advantest Corp. 34
4,000 Ajinomoto Co. 34
1,000 Alps Electric Co. Ltd. 11
2,000 Amada Co. Ltd. 10
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------
<C> <S> <C>
1,000 Amano Corp. $ 9
3,000 Aoki Corp.* 2
400 Arabian Oil Co. 6
15,000 Asahi Bank Ltd. 56
3,000 Asahi Breweries Ltd. 38
9,000 Asahi Chemical Industry Co. Ltd. 31
8,000 Asahi Glass Co. Ltd. 43
4,000 Ashikaga Bank Ltd. 6
200 Autobacs Seven Co. Ltd. 6
31,000 Bank of Tokyo-Mitsubishi Ltd. 319
8,000 Bank of Yokohama Ltd. 19
5,000 Bridgestone Corp. 114
2,000 Brother Industries Ltd. 7
6,000 Canon, Inc. 143
2,000 Casio Computer Co. Ltd. 19
5,000 Chiba Bank Ltd. 18
4,000 Chichibu Onoda Cement Corp. 6
1,000 Chiyoda Corp. 1
2,000 Chugai Pharmaceutical Co. Ltd. 11
2,000 Citizen Watch Co. Ltd. 15
4,000 Cosmo Oil Co. Ltd. 6
1,200 Credit Saison Co. Ltd. 24
400 CSK Corp. 9
5,000 Dai Nippon Ink & Chemicals, Inc. 16
5,000 Dai Nippon Printing Co. Ltd. 82
1,000 Dai Nippon Screen MFG Co. Ltd. 5
3,000 Daicel Chemical Industry Ltd. 5
3,000 Daido Steel Co. Ltd. 14
5,000 Daiei, Inc. 4
1,000 Daifuku Co. Ltd. 27
2,000 Daiichi Pharmaceutical 12
2,000 Daikin Industries Ltd. 1
1,000 Daikyo, Inc. 5
2,000 Daimaru, Inc. 4
1,100 Daito Trust Construction Co. 8
3,000 Daiwa House Industry Co. Ltd. 23
1,000 Daiwa Kosho Lease Co. Ltd. 4
9,000 Daiwa Securities Co. Ltd. 34
3,000 Denki Kagaku Kogyo Kabushiki Kaisha 5
6,000 Denso Corp. 102
26 East Japan Railway Co. 123
2,000 Ebara Corp. 18
2,000 Eisai Co. Ltd. 26
1,000 Ezaki Glico Co. Ltd. 5
1,600 Fanuc 59
19,000 Fuji Bank Ltd. 93
3,000 Fuji Photo Film Co. 102
2,000 Fujikura Ltd. 9
3,000 Fujita Corp. 2
1,000 Fujita Kanko, Inc. 9
12,000 Fujitsu Ltd. 138
4,000 Furukawa Electric Co. Ltd. 13
1,000 Gakken Co. Ltd. 2
3,000 Gunma Bank 21
2,000 Gunze Ltd. 5
6,000 Hankyu Corp. 25
</TABLE>
See accompanying notes to financial statements.
40
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
<C> <S> <C>
1,000 Hankyu Department Stores, Inc. $ 6
3,000 Haseko 2
2,000 Hazama Corp. 1
2,000 Higo Bank 9
22,000 Hitachi Ltd. 145
7,000 Hitachi Zosen Corp. 12
5,000 Hokuriku Bank 7
6,000 Honda Motor Co. Ltd. 204
1,000 House Foods Corp. 14
1,000 Hoya Corp. 32
2,000 Inax 7
17,000 Industrial Bank of Japan 104
1,000 Isetan 9
2,000 Ishihara Sangyo Kaisha 3
3,000 Ito-Yokado Co. 149
10,000 Itochu Corp. 22
2,000 Itoham Foods 9
2,000 Iwataini International Corp. 3
1,000 Jaccs Co. Ltd. 6
12,000 Japan Airlines 31
8,000 Japan Energy Corp. 8
1,000 Japan Metals & Chemicals 1
3,000 Japan Steel Works* 3
1,000 JGC Corp. 2
6,000 Joyo Bank 21
2,000 JUSCO Co. 35
6,000 Kajima Corp. 16
1,000 Kaken Pharmaceutical Co. 3
2,000 Kamigumi Co. Ltd. 8
1,000 Kandenko Co. Ltd. 6
4,000 Kanebo Ltd.* 3
2,000 Kaneka Corp. 11
6,400 Kansai Electric Power Co., Inc. 102
2,000 Kansai Paint 5
4,000 Kao Corp. 60
10,000 Kawasaki Heavy Industries Ltd. 19
4,000 Kawasaki Kisen Kaisha Ltd. 6
21,000 Kawasaki Steel Corp. 34
3,000 Keihin Electric Expesss Railway Co. Ltd. 9
1,000 Kikkoman Corp. 5
2,000 Kinden Corp. 24
11,000 Kinki Nippon Railway 53
7,000 Kirin Brewery Co. Ltd. 65
1,000 Kokuyo Co. Ltd. 18
6,000 Komatsu Ltd. 25
1,000 Komori Corp. 18
300 Konami Co. Ltd. 6
2,000 Konica Corp. 9
1,000 Koyo Seiko Co. 4
9,000 Kubota Corp. 22
5,000 Kumagai Gumi Co. Ltd. 3
2,000 Kurabo Industries 3
2,000 Kurary Co. Ltd. 17
1,000 Kureha Chemical Industry 2
1,000 Kurita Water Industries Ltd. 11
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------
<C> <S> <C>
1,000 Kyocera Corp. $ 49
3,000 Kyowa Hakko Kogyo 12
2,000 Lion Corp. 7
1,000 Maeda Road Construction Co. Ltd. 5
1,000 Makino Milling Machine Co. Ltd. 7
1,000 Makita Corp. 11
10,000 Marubeni Corp. 20
2,000 Maruha Corp. 2
2,000 Marui Co. Ltd. 31
14,000 Matsushita Electric Industrial Co. Ltd. 219
2,000 Meiji Milk Products Co. Ltd. 5
3,000 Meiji Seika 10
3,000 Minebea Co. Ltd. 31
1,000 Misawa Homes Co. Ltd. 3
14,000 Mitsubishi Chemical Corp. 25
10,000 Mitsuibishi Corp. 60
14,000 Mitsubishi Electric Corp. 33
8,000 Mitsubishi Estate Co. Ltd. 70
3,000 Mitsubishi Gas Chemical Co. 8
22,000 Mitsubishi Heavy Industries Ltd. 77
1,000 Mitsubishi Logistics Corp. 10
8,000 Mitsubishi Materials Corp. 16
3,000 Mitsubishi Oil Co. Ltd. 4
2,000 Mitsubishi Paper Mills 3
4,000 Mitsubishi Rayon Co. 10
9,000 Mitsubishi Trust & Banking Corp. 80
10,000 Mitshi & Co. 51
1,000 Mitsui Chemicals, Inc. 3
6,000 Mitsui Engineering & Shipbuilding Co. Ltd. 5
5,000 Mitsui Fudosan Co. Ltd. 40
5,000 Mitsui Marine & Fire Insurance Co. Ltd. 25
3,000 Mitsui Mining & Smelting 12
8,000 Mitsui O.S.K. Lines Ltd. 12
1,000 Mitsui Soko Co. Ltd. 3
8,000 Mitsui Trust & Banking Co. Ltd. 19
3,000 Mitsukoshi Ltd. 8
1,000 Mori Seiki Co. Ltd. 12
2,000 Murata Manufacturing Co. Ltd. 58
2,000 Mycal Corp. 12
1,000 Nagase & Co. Ltd. 3
5,000 Nagoya Railroad Co. Ltd. 15
3,000 Nankai Electric Railway 12
11,000 NEC Corp. 112
2,000 NGK Insulators Ltd. 18
1,000 NGK Spark Plug Co. 8
3,000 Nichido Fire & Marine Insurance 16
2,000 Nichirei Corp. 4
2,000 Nihon Cement Co. Ltd. 3
2,000 Niigata Engineering Co. Ltd.* 1
2,000 Nikon Corp. 14
1,000 Nippon Beet Sugar Manufacturing Co. Ltd. 1
1,000 Nippon Comsys Corp. 12
7,000 Nippon Express Co. Ltd. 38
4,000 Nippon Fire & Marine Insurance 15
4,000 Nippon Light Metal Co. 5
</TABLE>
See accompanying notes to financial statements.
41
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
JAPAN--Continued
1,000 Nippon Meat Packers, Inc. $ 13
8,000 Nippon Oil Co. Ltd. 25
6,000 Nippon Paper Industries Co. 26
1,000 Nippon Sharyo Ltd. 2
3,000 Nippon Sheet Glass Co. Ltd. 5
2,000 Nippon Shinpan Co. 3
1,000 Nippon Shokubai K.K. Co. 5
45,000 Nippon Steel Corp. 76
2,000 Nippon Suisan Kaisha Ltd.* 2
84 Nippon Telegraph & Telephone Corp. 691
8,000 Nippon Yusen Kabushiki Kaisha 28
2,000 Nishimatsu Construction 9
17,000 Nissan Motor Co. Ltd. 51
2,000 Nisshinbo Industries, Inc. 8
1,000 Nissin Food Products 19
1,000 Nitto Denko Corp. 16
25,000 NKK Corp. 21
1,000 NOF Corp. 2
13,000 Nomura Securities Co. Ltd. 142
1,000 Noritake Co. Ltd. 4
4,000 NSK Ltd. 14
3,000 NTN Corp. 8
5,000 Obayashi Corp. 19
5,000 Odakyu Electric Railway 16
7,000 Oji Paper Co. Ltd. 30
1,000 Okamoto Industries Inc. 2
1,000 Okuma Corp. 4
2,000 Okumura Corp. 6
2,000 Olympus Optical Co. Ltd. 19
2,000 Omron Corp. 30
1,000 Onward Kasiyama Co. Ltd. 12
2,000 Orient Corp. 4
17,000 Osaka Gas Co. Ltd. 37
300 Oyo Corp. 4
2,000 Penta-Ocean Construction 4
1,000 Pioneer Electronic Corp. 19
1,000 Q.P. Corp. 7
2,000 Renown, Inc.* 1
1,000 Rohm Co. Ltd. 104
24,000 Sakura Bank Ltd. 71
1,000 Sanden Corp. 7
2,000 Sankyo Aluminium Industry Co. 2
3,000 Sankyo Co. Ltd. 72
2,000 Sanwa Shutter Corp. 8
13,000 Sanyo Electric Co. 37
2,000 Sapporo Breweries Ltd. 8
2,000 Sato Kogyo 2
1,000 Secom Co. Ltd. 57
600 Sega Enterprises 11
1,000 Seino Transportation Co. Ltd. 5
1,000 Seiyu Ltd. 2
4,000 Sekisui Chemical Co. Ltd. 20
5,000 Sekisui House Ltd. 37
7,000 Sharp Corp. 53
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------
<C> <S> <C>
1,000 Shimano Inc. $ 23
5,000 Shimizu Corp. 13
3,000 Shin-Etsu Chemical Co. Ltd. 56
2,000 Shionogi & Co. 10
3,000 Shiseido Co. Ltd. 35
5,000 Shizuoka Bank 54
7,000 Showa Denko K.K. 7
1,000 Skylark Co. Ltd. 9
2,000 Snow Brand Milk Products 6
2,700 Sony Corp. 228
21,000 Sumitomo Bank Ltd. 196
11,000 Sumitomo Chemicals Co. 30
7,000 Sumitomo Corp. 37
5,000 Sumitomo Electric Industries 52
1,000 Sumitomo Forestry Co. Ltd. 6
4,000 Sumitomo Heavy Industries Ltd. 9
4,000 Sumitomo Marine & Fire Insurance 22
21,000 Sumitomo Metal Industries 33
4,000 Sumitomo Metal Mining Co. 17
3,000 Sumitomo Osaka Cement Co. Ltd. 4
6,000 Taisei Corp. 12
2,000 Taisho Pharmaceutical Co. 38
1,000 Taiyo Yuden Co. Ltd. 12
1,000 Takara Shuzo 4
1,000 Takara Standard Co. Ltd. 5
2,000 Takashimaya Co. Ltd. 14
6,000 Takeda Chemical Industries 155
6,000 Teijin Ltd. 18
2,000 Teikoku Oil Co. Ltd. 6
1,000 Toa Corp. 2
6,000 Tobu Railway Co. 17
1,000 Toei Co. Ltd. 3
100 Toho Co. 11
3,300 Tohoku Electric Power 45
14,000 Tokai Bank 77
10,000 Tokio Marine & Fire Insurance Co. 95
1,000 Tokyo Broadcasting System Inc. 12
1,000 Tokyo Dome Corp. 6
8,900 Tokyo Electric Power Co. 170
1,000 Tokyo Electron Ltd. 32
18,000 Tokyo Gas Co. Ltd. 37
1,200 Tokyo Steel Manufacturing 6
1,000 Tokyo Style Co. Ltd. 10
2,000 Tokyo Tatemono Co. Ltd. 4
2,000 Tokyotokeiba 3
7,000 Tokyu Corp. 23
5,000 Toppan Printing Co. Ltd. 55
9,000 Toray Industries, Inc. 45
4,000 Tosoh Corp. 7
1,000 Tostem Corp. 13
2,000 Toto Ltd. 13
1,000 Toyo Engineering Corp. 1
1,000 Toyo Seikan Kaisha 12
5,000 Toyobo Ltd. 7
2,000 Toyoda Automatic Loom Works 35
</TABLE>
See accompanying notes to financial statements.
42
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------
<C> <S> <C>
25,000 Toyota Motor Corp. $ 619
1,000 Tsubakimoto Chain 3
6,000 Ube Industries Ltd. 8
3,000 Unitika Ltd.* 2
1,000 Uny Co. Ltd. 15
1,000 Wacoal Corp. 10
1,000 Yamaguchi Bank 12
1,000 Yamaha Corp. 9
5,000 Yamaichi Securities Co. Ltd. 0
2,000 Yamanouchi Pharmaceutical Co. Ltd. 44
3,000 Yamato Transport Co. Ltd. 35
1,000 Yamazaki Baking Co. Ltd. 9
8,000 Yasuda Trust & Banking 10
2,000 Yokogawa Electric 10
--------
9,337
--------
MALAYSIA--0.7%
1,000 Aluminium Co. of Malaysia Berhad 0
2,200 AMMB Holdings Berhad 2
8,000 Amsteel Corp. Berhad 1
2,000 Antah Holdings Berhad 0
2,000 Aokam Perdana Berhad* 0
6,000 Berjaya Group Berhad 1
4,000 Berjaya Land Berhad 3
5,000 Commerce Asset Holdings Berhad 3
2,000 Edaran Otomobil Nasional Berhad 3
4,000 Ekran Berhad 1
6,000 Golden Hope Plantations Berhad 7
1,000 Golden Plus Holdings Berhad 0
2,000 Guinness Anchor Berhad 3
4,000 Highlands & Lowlands Berhad 4
2,000 Hong Leong Industries Berhad 2
4,000 Hong Leong Properties Berhad 1
2,000 Hume Industries Berhad 1
4,000 Idris Hydraulic Berhad* 1
3,000 IGB Corp. Berhad 1
5,000 IOI Corp. Berhad 3
2,000 Jaya Tiasa Holdings Berhad 3
2,000 Johan Holdings Berhad 0
3,000 Kedah Cement Holdings Berhad 1
1,000 Kelanamas Industries Berhad 0
3,000 Kemayan Corp. Berhad 0
1,000 Kian Joo Can Factory Berhad 1
5,000 Kuala Lumpur Kepong Berhad 9
3,000 Land and General Berhad 0
3,000 Landmarks Berhad 0
3,000 Leader Universal Holdings Berhad 1
9,000 Magnum Corp. Berhad 5
13,200 Malayan Banking Berhad 18
3,000 Malayan Cement Berhad 1
12,000 Malayan United Industries Berhad 2
1,500 Malayawata Steel Berhad 0
24,000 Malaysia International Shipping Berhad 42
5,000 Malaysia Mining Corp. Berhad 2
5,000 Malaysian Airline System Berhad 3
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
2,000 Malaysian Mosaics Berhad $ 1
1,000 Malaysian Oxygen Berhad 3
2,000 Malaysian Pacific Industries 5
5,666 Malaysian Resources Corp. Berhad 2
5,000 MBF Capital Berhad 1
5,000 Metroplex Berhad 1
6,000 Mulpha International Berhad 1
5,000 Multi-Purpose Holdings 1
3,000 Mycom Berhad 0
2,000 Nestle Berhad 9
2,000 New Straits Times Press Berhad 1
2,600 Oriental Holdings Berhad 5
1,000 Palmco Holdings Berhad 0
5,000 Pan-Malaysia Cement Works Berhad 1
3,000 Perlis Plantations Berhad 4
4,000 Perusahaan Otomolbil Nasional Berhad 4
2,000 Petaling Garden Berhad 1
2,000 Pilecon Engineering Berhad 1
4,000 Promet Berhad* 0
3,600 Public Bank Berhad 1
25,600 Public Bank Berhad (Foreign Market) 10
2,000 R.J. Reynolds Berhad 3
3,000 Rashid Hussain Berhad 2
7,000 Resorts World Berhad 11
12,000 RHB Capital Berhad 7
1,800 Rothmans of Pall Mall Berhad 14
2,000 Selangor Properties Berhad 1
2,000 Shell Refining Co. Berhad 3
280 Silverstone Berhad* 0
14,000 Sime Darby Berhad 11
3,000 Sungei Way Holdings Berhad 1
5,000 Ta Enterprise Berhad 1
4,000 Tan Chong Motor Holdings Berhad 1
5,000 Technology Resources Industries Berhad* 4
17,500 Telekom Malaysia Berhad 40
18,000 Tenaga Nasional Berhad 30
5,000 Time Engineering Berhad 1
2,000 UMW Holdings Berhad 1
5,000 United Engineers Malaysia Ltd. 3
8,000 YTL Corp. Berhad 10
--------
321
--------
NETHERLANDS--5.6%
9,169 ABN AMRO Holdings N.V. 222
464 Akzo Nobel 97
232 ASR Verzekeringsgroep N.V. 20
4,334 Elsevier N.V. 68
558 Getronics N.V. 28
2,038 Heineken N.V. 78
215 Hollandsche Beton Groep N.V. 5
175 IHC Caland N.V. 10
6,061 ING Groep N.V. 417
479 KLM Royal Dutch Airlines N.V. 19
3,398 Koninklijke Ahold N.V. 107
241 Koninklijke Hoogovens N.V. 11
</TABLE>
See accompanying notes to financial statements.
43
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
NETHERLANDS--Continued
676 Koninklijke KNP BT N.V. $ 20
148 Koninklijke Nedlloyd N.V. 3
209 Koninklijke Pakhoed N.V. 7
3,070 Koninklijke PTT Nederland N.V. 172
528 Oce-Van Der Grinten N.V. 22
2,371 Philips Electronics N.V. 226
13,940 Royal Dutch Petroleum Co. 795
199 Stork N.V. 7
4,162 Unilever N.V. 331
445 Wolters Kluwer N.V. 63
--------
2,728
--------
NEW ZEALAND--0.2%
17,500 Brierley Investments Ltd. 9
11,200 Carter Holt Harvey Ltd. 13
800 Fisher & Paykel Industries Ltd. 2
2,218 Fletcher Challenge Building 4
2,222 Fletcher Challenge Energy 7
5,317 Fletcher Challenge Forests 3
4,200 Fletcher Challenge Paper 6
3,600 Lion Nathan Ltd. 9
11,400 Telecom Corp. of New Zealand Ltd. 52
--------
105
--------
NORWAY--0.5%
400 Aker RGI ASA 6
140 Aker RGI ASA, Class B 2
300 ASK ASA* 3
300 Bergesen d.y. ASA, Class A 6
100 Bergesen d.y. ASA, Class B 2
3,600 Christiania Bank Og Kreditkasse 15
4,200 Den norske Bank ASA 23
200 Dyno Industrier ASA 4
300 Elkem ASA 4
500 Hafslund ASA, Class A 3
200 Hafslund ASA, Class B 1
100 Helicopter Services Group ASA 1
200 Kvaerner ASA 8
100 Kvaerner ASA, Class B 3
200 Leif Hoegh & Co. ASA 3
500 Merkantildata ASA 7
1,600 NCL Holdings ASA* 8
1,500 Norsk Hydro ASA 68
200 Norske Skogindustrier ASA, Class A 6
100 Norske Skogindustrier ASA, Class B 3
800 Orkla ASA, Class A 18
400 Orkla ASA, Class B 8
200 Petroleum Geo-Services ASA* 13
300 SAS Norge ASA, Class B 5
400 Schibsted ASA 6
200 Smedvig, Class A 3
100 Smedvig, Class B 2
1,800 Storebrand ASA* 17
300 Tomra System ASA 9
100 Unitor ASA 2
--------
259
--------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------------------------
<C> <S> <C>
PORTUGAL--0.7%
1,200 Banco Comercial Portugues S.A. (Registered) $ 40
720 Banco Espirito Santo e Comercial de Lisboa S.A. (Registered) 26
400 Banco Totta & Acores S.A. (Registered) 15
500 BPI-SGPS S.A. (Registered) 20
500 Brisa-Auto Estradas de Portugal S.A. 23
500 Cimpor-Cimentos de Portugal SGPS S.A. 19
100 Colep-Companhia Portuguesa de Embalagens* 1
100 Companhia de Seguros Tranquilidade (Registered) 3
100 Corticeira Amorim S.A. 2
2,300 EDP-Electricidade de Portugal S.A. 61
100 EFACEC-Empresa Fabril de Maquinas Electricas S.A. 1
100 Engil-SGPS 1
100 INAPA Investimentos Participacoes e Gestao S.A. 1
400 Jeronimo Martins SGPS S.A. 18
700 Portucel Industral-Empresa Produtora de Celulose S.A. 6
1,200 Portugal Telecom S.A. (Registered) 63
100 Sociedade de Construcoes Soares da Costa S.A. 1
100 Somague-SGPS S.A. 1
200 Sonae Investmentos-SGPS S.A. 12
100 UNICER-Uniao Cervejeira S.A. 2
--------
316
--------
SINGAPORE--0.6%
1,000 Chuan Hup Holdings Ltd. 0
3,000 City Developments Ltd. 11
2,000 Comfort Group Ltd. 1
1,000 Cycle & Carriage Ltd. 3
3,000 DBS Land Ltd. 3
9,900 Development Bank of Singapore Ltd. 60
1,000 First Capital Corp. Ltd. 1
1,000 Fraser & Neave Ltd. 3
2,000 Goldtron Ltd. 0
2,000 Hai Sun Hup Group Ltd. 1
1,000 Haw Par Brothers International Ltd. 1
1,000 Hotel Properties Ltd. 0
1,000 Inchcape Marketing Services Ltd.* 0
1,000 Inchape Motors Ltd. 1
6,000 IPC Corp. 1
2,250 Keppel Corp. Ltd. 5
2,400 Lum Chang Holdings Ltd. 1
1,000 NatSteel Ltd. 1
3,000 Neptune Orient Lines Ltd. 1
14,600 Overseas Chinese Banking Corp. Ltd. (Foreign) 58
1,000 Overseas Union Enterprise Ltd. 1
400 Overseas Union Enterprise Ltd. Rights 0
1,000 Parkways Holdings Ltd. 2
1,000 Sembawang Co. Ltd. 2
1,000 Sembawang Marine and Logistics 1
8,000 Singapore Airlines Ltd. 44
2,104 Singapore Press Holdings Ltd. 17
</TABLE>
See accompanying notes to financial statements.
44
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------------------
<C> <S> <C>
2,000 Singapore Technologies Industrial Corp. $ 2
17,000 Singapore Telecommunications Ltd. 24
1,000 Straits Trading Co. Ltd. 1
4,000 United Industrial Corp. Ltd. 1
7,000 United Overseas Bank Ltd. (Foreign) 27
2,000 United Overseas Land Ltd. 1
--------
275
--------
SPAIN--3.0%
75 Acerinox S.A. 11
1,550 Autopistas Concesionaria ESP 25
4,402 Banco Bilbao Vizcaya S.A. 221
2,380 Banco Central Hispanoamericano 78
3,117 Banco Santander S.A. 157
800 Corporacion Bancaria de Espana S.A. 68
100 Corporacion Financiera Alba 12
393 Corporacion Mapfre 15
372 Dragados & Construcciones S.A. 12
300 Ebro Agricolas Compania de Alimentacion S.A.* 8
200 El Aguila S.A.* 2
150 Empresa Nacional de Celulosas S.A. 3
6,750 Empresa Nacional de Electricidad S.A. 162
900 Ercros S.A.* 1
375 Fomenta de Construcciones S.A. 19
975 Gas Natural SDG S.A., Class E 67
5,855 Iberdrola S.A. 97
150 Inmobiliaria Metropolitana Vasco Central S.A. 9
250 Inmobiliaria Urbis S.A.* 4
50 Portland Valderrivas S.A. 6
400 Prosegur CIA de Seguridad S.A. (Registered) 5
1,950 Repsol S.A. 108
453 Sarrio S.A. 2
300 Sociedade General de Aguas de Barcelona S.A. 17
1,125 Tabacalera S.A., Class A 24
6,101 Telefonica de Espana 273
1,977 Union Electrica Fenosa S.A. 25
350 Uralita S.A. 5
275 Vallehermoso S.A. 11
150 Viscofan Industria Navarra de Envolturas Celulosica 7
350 Zardoya Otis S.A. 12
--------
1,466
--------
SWEDEN--3.1%
4,300 ABB AB, Class A 69
1,800 ABB AB, Class B 29
800 AGA AB, Class A 13
700 AGA AB, Class B 11
250 Asticus AB* 3
8,666 Astra AB, Class A 174
2,000 Astra AB, Class B 39
800 Atlas Copco AB, Class A 23
400 Atlas Copco AB, Class B 12
500 Diligentia AB 5
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------------
<C> <S> <C>
488 Electrolux AB, Class B $ 49
100 Esselte AB, Class A 2
100 Esselte AB, Class B 2
1,500 Fastighets AB Balder 0
2,300 ForeningsSparbanken AB 69
192 Granges AB 4
1,300 Hennes & Mauritz AB, Class B 73
700 Netcom Systems AB, Class B* 27
600 Om Gruppen AB 12
1,200 Sandvik AB, Class A 36
500 Sandvik AB, Class B 15
500 Securitas AB, Class B 19
3,105 Skandia Forsakrings AB 45
3,800 Skandinaviska Enskilda Banken, Class A 63
700 Skanska AB, Class B 33
400 SKF AB, Class A 8
411 SKF AB, Class B 9
1,700 Stora Kopparbergs Bergslags Aktiebolag,
Class A 28
500 Stora Kopparbergs Bergslags Aktiebolag,
Class B 8
1,300 Svenska Cellulosa AB, Class B 36
1,400 Svenska Handelsbanken, Class A 59
100 Svenska Handelsbanken, Class B 4
600 Svenskt Stal AB, Class A 12
300 Svenskt Stal AB, Class B 6
3,000 Swedish Match AB 11
3,000 Swedish Match AB Rights* 0
12,600 Telefonaktiebolaget LM Ericsson, Class B 360
800 Trelleborg AB, Class B 11
900 Volvo AB, Class A 64
2,000 Volvo AB, Class B 28
500 Wm-Data AB, Class B 18
--------
1,489
--------
SWITZERLAND--8.0%
55 ABB A.G. (Bearer)* 93
25 ABB A.G. (Registered) 9
110 Adecco S.A. 45
40 Alusuisse-Lonza Holdings A.G. (Registered) 54
1,745 Credit Suisse Group (Registered) 384
15 Fischer (Georg) A.G. (Registered) 7
30 Holderbank Financiere Glarus A.G., (Bearer) 38
50 Holderbank Financiere Glarus A.G. (Registered) 13
2 Kuoni Reisen A.G., Category B (Registered) 11
280 Nestle S.A. (Registered) 601
60 Novartis A.G. (Bearer) 102
430 Novartis A.G. (Registered) 729
11 Roche Holdings A.G. (Bearer) 182
51 Roche Holdings A.G. (Genusss) 525
100 Sairgroup (Registered) 31
10 Schindler Holding A.G. (Registered) 18
510 Schweizerischer Bankverein (Registered)* 185
35 SGS Societe Generale de Surveillance Holdings S.A. 53
</TABLE>
See accompanying notes to financial statements.
45
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
SWITZERLAND--Continued
20 SMH A.G. (Bearer) $ 17
100 SMH A.G. (Registered) 18
115 Schweizerische Reuckversicherungs-
Gesellschaft (Registered) 265
20 Sulzer (Registered) 17
140 Union Bank of Switzerland (Bearer) 236
145 Union Bank of Switzerland (Registered) 49
25 Valora Holding A.G. 7
310 Zurich Versicherungsgesellschaft (Registered) 194
--------
3,883
--------
UNITED KINGDOM--19.3%
9,000 Abbey National PLC 160
1,012 AMEC PLC 3
439 Amstrad PLC 0
2,000 Anglian Water PLC 28
2,000 Argos PLC 21
5,000 Arjo Wiggins Appleton PLC 20
6,000 Associated British Foods PLC 55
20,311 B.A.T. Industries PLC 183
9,933 Barclays PLC 265
1,000 Barratt Developments PLC 5
5,158 Bass PLC 95
3,037 BBA Group PLC 26
25,294 BG PLC 130
3,044 BICC Group PLC 8
5,000 Blue Circle Industries PLC 32
3,167 BOC Group PLC 50
5,917 Boots Co. PLC 89
1,000 Bowthorpe PLC 10
3,000 BPB PLC 21
12,000 British Aerospace PLC 106
7,000 British Airways PLC 74
3,000 British Land Co. PLC 33
37,651 British Petroleum Co. PLC 552
11,000 British Sky Broadcasting Group PLC 77
13,000 British Steel PLC 32
41,352 British Telecommunications PLC 431
21,610 BTR PLC 71
1,000 Burmah Castrol PLC 20
15,000 Cable & Wireless PLC 170
6,510 Cadbury Schweppes PLC 99
3,900 Caradon PLC 13
4,000 Carlton Communications PLC 32
29,000 Centrica PLC* 47
5,000 Coats Viyella PLC 7
1,000 Cobham PLC 20
4,000 Commercial Union PLC 73
2,645 Courtaulds PLC 20
1,000 Courtaulds Textiles PLC 5
1,000 De La Rue PLC 5
1,000 Delta PLC 5
23,594 Diageo PLC 266
3,000 Electrocomponents PLC 28
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------------
<C> <S> <C>
3,000 Elementis PLC $ 9
5,137 EMI Group PLC 43
2,020 English China Clays PLC 8
4,000 FKI PLC 14
17,618 General Electric Co. PLC 144
4,596 GKN PLC 68
23,000 Glaxo Wellcome PLC 618
6,078 Granada Group PLC 114
2,000 Great Portland Estates PLC 8
7,000 Great Universal Stores PLC 99
5,714 Guardian Royal Exchange PLC 36
2,008 Hammerson PLC 17
4,000 Hanson PLC 24
2,000 Hepworth PLC 9
12,235 HSBC Holdings PLC 302
6,117 HSBC Holdings PLC (75P) 160
1,000 Hyder PLC 16
2,000 IMI PLC 17
5,000 Imperial Chemical Industries PLC 95
1,000 Johnson Matthey PLC 10
4,000 Kingfisher PLC 71
8,000 Ladbroke Group PLC 45
1,000 Laird Group PLC 8
3,522 Land Securities Group PLC 55
6,000 LASMO PLC 28
8,000 Legal & General Group PLC 88
1,000 Lex Service PLC 10
35,626 Lloyds TSB Group PLC 517
1,286 Lonrho PLC 6
1,286 Lonrho Africa PLC* 2
9,070 LucasVarity PLC 40
18,510 Marks & Spencer PLC 165
2,000 Marley PLC 4
2,726 MEPC PLC 25
1,000 Meyer International PLC 7
9,050 National Grid Group PLC 56
8,000 National Power PLC 74
2,000 Next PLC 18
1,000 Ocean Group PLC 13
3,724 Pearson PLC 55
4,014 Peninsular and Oriental Steam Navigation Co. 68
6,742 Pilkington PLC 16
1,929 Provident Financial PLC 31
12,000 Prudential Corp. PLC 159
2,000 Racal Electronics PLC 12
3,000 Railtrack Group PLC 58
5,215 Rank Group PLC 30
7,832 Reed International PLC 72
9,400 Reuters Holdings PLC 108
3,000 Rexam PLC 15
6,966 Rio Tinto PLC (Registered) 87
2,000 RMC Group PLC 38
10,000 Rolls-Royce PLC 48
10,093 Royal & Sun Alliance Insurance Group PLC 107
5,610 Royal Bank Scotland Group PLC 95
</TABLE>
See accompanying notes to financial statements.
46
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
<C> <S> <C>
4,000 Rugby Group PLC $ 9
7,081 Safeway PLC 43
12,331 Sainsbury (J) PLC 97
1,500 Schroders PLC 44
4,000 Scottish & Newcastle PLC 56
8,000 Scottish Power PLC 72
9,930 Sears PLC 10
4,000 Sedgwick Group PLC 10
3,000 Slough Estates PLC 19
36,000 SmithKline Beecham PLC 390
2,000 Smiths Industries PLC 32
3,000 Southern Electric PLC 26
3,000 St. James Place Capital PLC 17
6,052 Tarmac PLC 12
3,000 Tate & Lyle PLC 24
3,000 Taylor Woodrow PLC 11
14,180 Tesco PLC 124
2,000 Thames Water PLC 32
2,714 Thorn PLC 9
3,000 TI Group PLC 29
565 Transport Development Group PLC 3
1,000 Transport Development Group PLC, Class B* 1
1,556 Unigate PLC 17
20,868 Unilever PLC 229
3,451 United Biscuits Holdings PLC 15
4,000 United Utilities PLC 54
2,000 Vickers PLC 8
1,000 Viglen Technology PLC 1
20,113 Vodafone Group PLC 221
4,666 Williams PLC 33
3,036 Willis Corroon 8
1,000 Wilson (Connolly) Holdings PLC 3
2,000 Wimpey (George) PLC 4
4,000 Wolseley PLC 28
6,000 Zeneca Group PLC 244
--------
9,364
- ------------------------------------------------------------
TOTAL COMMON STOCKS (Cost $41,513) $ 45,515
- ------------------------------------------------------------
PREFERRED STOCKS--0.8%
AUSTRALIA--0.1%
11,466 News Corp. Ltd. $ 62
3,600 Star City Holdings Ltd.* 2
--------
64
--------
AUSTRIA--0.1%
12 Bau Holdings A.G.--Vorzug 1
193 Bank Austria A.G.--Vorzug 17
4 EA-Generali A.G.--Vorzug 1
--------
19
--------
FRANCE--0.0%
100 Casino Guichard--Perrachon S.A. 5
--------
GERMANY--0.6%
50 Axa Colonia Konzern A.G.--Non Voting 5
50 MAN A.G.--Vorzug 15
200 Metro A.G.--Vorzug 9
1,400 RWE A.G.--Non Voting 57
300 SAP A.G.--Vorzug 167
50 Volkswagen A.G.--Non Voting 30
--------
283
--------
</TABLE>
<TABLE>
<CAPTION>
Shares/
Principal
Amount Description Value
- -------------------------------------------------------------------------------
<C> <S> <C>
ITALY--0.0%
6,300 Fiat S.p.A. $ 17
- -------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS (Cost $263) $ 388
- -------------------------------------------------------------------------------
CORPORATE BONDS--0.0%
UNITED KINGDOM--0.0%
Viglen Technology PLC
$2 6.938% Due 09/01/00 $ 4
Viglen Technology PLC Letters of Entitlement to Litigation
Notes
1 4.120% Due 01/01/01 0
-------
4
- -------------------------------------------------------------------------------
TOTAL CORPORATE BONDS (Cost $4) $ 4
- -------------------------------------------------------------------------------
OTHER--3.6%
GERMANY--0.1%
1,100 WEBS Index Series--Germany $ 26
-------
JAPAN--2.0%
101,900 WEBS Index Series--Japan 987
-------
SWITZERLAND--0.4%
10,600 WEBS Index Series--Switzerland 205
-------
UNITED KINGDOM--1.1%
27,100 WEBS Index Series--United Kingdom 547
- -------------------------------------------------------------------------------
TOTAL OTHER (Cost $1,991) $ 1,765
- -------------------------------------------------------------------------------
SHORT-TERM INVESTMENT--0.4%
Marshall & Isley Bank, Grand Cayman
$207 5.688%Due 06/01/98 $ 207
- -------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT (Cost $207) $ 207
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS--98.8%
(Cost $43,978) $47,879
- -------------------------------------------------------------------------------
Other assets, less liabilities--1.2% 569
- -------------------------------------------------------------------------------
NET ASSETS--100.0% $48,448
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
*Non-income producing security.
At May 31, 1998 the Portfolio's investments, excluding the short-term
investment, were diversified as follows:
<TABLE>
<S> <C>
Industry/Sector
- ------------------------------
Banks 14.8%
Business Services 9.5
Capital Goods 6.4
Consumer Goods 13.9
Consumer Services 3.7
Energy/Utilities 11.8
Financial Services 9.1
Pharmaceuticals/Health 7.7
Multi-Industry 6.1
Raw Materials 6.9
Retail 4.1
Technology 3.9
Transportation 2.1
- ------------------------------
Total 100.0%
- ------------------------------
</TABLE>
See accompanying notes to financial statements.
47
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------------------
INTERNATIONAL GROWTH PORTFOLIO
<C> <S> <C> <C>
COMMON STOCKS--92.0%
FRANCE--15.5%
21,000 Axa-UAP $ 2,390
9,000 Cie Generale des Eaux 1,808
17,000 Elf Aquitaine S.A. 2,361
8,500 Groupe Danone S.A. 2,289
6,000 Lafarge S.A. 609
11,000 Lyonnaise des Eaux--Dumez S.A. 1,877
19,000 Paribas 1,937
8,500 Societe Generale 1,684
6,000 Valeo S.A. 566
12,000 Vivendi 2,116
--------
17,637
--------
GERMANY--14.7%
5,500 Allianz A.G. 1,740
20,000 Deutsche Bank A.G. 1,723
39,000 Hoechst A.G. 1,947
2,800 Karstadt A.G. . 1,465
6,000 MAN A.G. 2,390
2,600 Mannesmann A.G. 2,545
4,000 Munchener Rueckversicherungs-Gesellschaft A.G. 1,818
18,000 VEBA A.G. 1,183
2,400 Volkswagen A.G. 1,948
--------
16,759
--------
GREECE--3.1%
12,000 Alpha Credit Bank Athens 1,253
28,000 Hellenic Bottling Co. S.A. 938
45,000 Hellenic Telecommunication Organization S.A. 1,323
--------
3,514
--------
IRELAND--1.6%
30,000 Elan Corp. PLC ADR* 1,836
--------
ITALY--6.7%
75,000 Assicurazioni Generali 2,412
475,000 Fiat S.p.A. 2,128
350,000 Pirelli S.p.A. 1,156
255,000 Telecom Italia S.p.A. 1,928
--------
7,624
--------
JAPAN--11.3%
85,000 Eisai Co. Ltd. 1,128
42,000 Fuji Photo Film Co. 1,422
180,000 Industrial Bank of Japan Ltd. 1,104
23,000 Ito-Yokado Co. Ltd. 1,145
140,000 Kirin Brewery Co. Ltd. 1,302
140 Nippon Telegraph & Telephone Corp. 1,152
70,000 Pioneer Electronic Corp. 1,364
100,000 Sanwa Bank (The) Ltd. 876
95,000 Shiseido Co. Ltd. 1,104
275,000 Sumitomo Realty & Development Co. Ltd. 1,292
70,000 Uny Co. Ltd. 1,056
--------
12,945
--------
</TABLE>
<TABLE>
<CAPTION>
Shares/
Principal
Amount Description Value
- -----------------------------------------------------------------
<C> <S> <C> <C>
NETHERLANDS--6.4%
20,000 ING Groep N.V. $ 1,375
22,000 Royal Dutch Petroleum Co. 1,233
34,000 Unilever N.V. ADR 2,684
29,000 Vendex International N.V. 1,963
--------
7,255
--------
SOUTH AFRICA--2.0%
50,000 Liberty Life Association of Africa Ltd. 1,379
35,000 Nedcor Ltd. 937
--------
2,316
--------
SOUTH KOREA--0.0%
368 Daewoo Corp. 1
--------
SPAIN--3.4%
115,000 Iberdola S.A. 1,900
14,500 Telefonica de Espana ADR 1,950
--------
3,850
--------
SWEDEN--3.7%
17,500 Electrolux AB, Series B 1,743
110,000 Skandinaviska Enskilda Banken 1,833
20,000 Volvo AB 640
--------
4,216
--------
SWITZERLAND--7.1%
7,300 Credit Suisse Group 1,610
900 Nestle S.A. 1,931
1,800 Novartis A.G. 3,053
2,400 Zurich Versicherungs-Gesellschaft A.G. 1,501
--------
8,095
--------
UNITED KINGDOM--16.5%
125,000 Bass PLC 2,300
170,000 Diageo PLC 1,918
240,000 General Electric Co. PLC 1,965
25,000 Glaxo Wellcome PLC ADR 1,348
130,000 Great Universal Stores PLC 1,845
305,000 Ladbroke Group PLC 1,721
110,000 National Westminster Bank PLC 2,007
110,000 Pearson PLC 2,014
330,000 Shell Transport & Trading Co. 2,435
12,000 Vodafone Group PLC ADR 1,319
--------
18,872
- -----------------------------------------------------------------
TOTAL COMMON STOCKS (Cost $86,289) $104,920
- -----------------------------------------------------------------
- -----------------------------------------------------------------
SHORT-TERM INVESTMENT--7.3%
Marshall & Isley Bank, Grand Cayman
$ 8,366 5.688%Due 06/01/98 $ 8,366
- -----------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $8,366) $ 8,366
- -----------------------------------------------------------------
TOTAL INVESTMENTS--99.3%
(Cost $94,655) $113,286
- -----------------------------------------------------------------
Other assets, less liabilities--0.7% 843
- -----------------------------------------------------------------
NET ASSETS--100.0% $114,129
- -----------------------------------------------------------------
- -----------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
48
<PAGE>
- --------------------------------------------------------------------------------
At May 31, 1998 the Portfolio's investments, excluding the short-term
investment, were diversified as follows:
<TABLE>
<CAPTION>
Industry/Sector
- -----------------------------------
<S> <C>
Auto 4.1%
Basic Industry 8.6
Capital Goods 7.7
Consumer Goods 16.1
Financial Services 20.7
Food & Beverage 6.6
Insurance 3.4
Pharmaceuticals/Health Care 5.3
Real Estate 1.1
Retail 4.3
Technology 10.6
Other 11.5
- -----------------------------------
Total 100.0%
- -----------------------------------
</TABLE>
*Non-income producing security.
See accompanying notes to financial statements.
49
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO
<C> <S> <C>
COMMON STOCKS--97.5%
AGRICULTURE--0.7%
4,100 DeKalb Genetics Corp. $ 393
5,153 Delta & Pine Land Co. 221
5,700 Dimon, Inc. 77
7,000 Longview Fibre Co. 116
1,200 Tejon Ranch Co. 32
--------
839
--------
APPAREL--0.5%
2,500 Converse, Inc.* 13
1,900 Donna Karan Intl, Inc.* 27
1,200 Fossil, Inc.* 23
1,300 Gadzooks, Inc.* 36
3,700 Genesco, Inc.* 48
1,000 Guess ?, Inc.* 5
3,500 Hartmarx Corp.* 28
3,050 Kellwood Co. 101
1,100 Kenneth Cole Productions, Inc.* 25
4,700 Nautica Enterprises, Inc.* 137
1,100 Oshkosh B' Gosh, Inc. 42
1,000 Oxford Industries, Inc. 35
2,400 St. John Knits, Inc. 92
4,300 Tultex Corp.* 13
1,350 Unitog Co. 31
--------
656
--------
BANKING--7.7%
3,250 Aames Financial Corp. 47
1,680 Albank Financial Corp. 87
3,350 Amcore Financial, Inc. 82
1,300 Anchor Bancorp, Inc. 55
1,500 Area Bancshares Corp. 53
6,854 Associated Banc-Corp. 339
500 Bancfirst Corp. 24
5,600 BancorpSouth, Inc. 119
1,302 Bank Granite Corp. Club, Inc. 53
1,800 BankAtlantic Bancorp, Inc. 25
2,200 Banknorth Group, Inc. 80
1,700 Bay View Capital Corp. 55
1,846 Brenton Banks, Inc. 38
1,200 BSB Bancorp, Inc. 38
1,760 BT Financial Corp. 48
200 Capital City Bank Group, Inc. 9
900 CBT Corp. 30
1,583 Chemical Financial Corp. 67
2,108 Chittenden Corp. 79
1,925 CitFed Bancorp, Inc. 95
800 Citizens Bancshares of Ohio 56
2,350 Citizens Banking Corp. of Michigan 81
2,501 CNB Bancshares, Inc. 116
4,600 Colonial BancGroup, Inc. 149
2,299 Commerce Bancorp, Inc. 128
2,354 Commonwealth Bancorp 56
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
<C> <S> <C>
1,100 Community Bank System, Inc. $ 37
5,400 Community First Bankshares 132
1,400 CPB, Inc. 27
3,080 Cullen/Frost Bankers, Inc. 167
1,350 CVB Financial Corp. 29
3,006 Downey Financial Corp. 100
1,388 F & M Bancorp 56
2,955 F & M National Corp. 87
1,983 Fidelity National Corp. 66
1,400 First Citizens Bancshares, Class A. 148
1,600 First Commercial Bancshares, Inc. 43
3,200 First Commonwealth Financial Corp. 90
1,400 First Federal Financial Corp. 69
1,181 First Financial Bancshares, Inc. 48
852 First Financial Corp. of Indiana 44
2,375 First Midwest Bancorp, Inc. of Illinois 109
4,695 First Source Bancorp, Inc. 48
1,474 First Source Corporation 53
1,150 First United Bancshares of Ark 60
1,632 First Western Bancorp 50
2,250 Firstbank of Illinois Co. 96
1,825 Firstbank Puerto Rico* 102
2,243 FNB Corp. 80
6,905 Fulton Financial Corp. 181
2,000 GBC Bancorp 57
1,100 Hamilton Bancorp, Inc* 35
1,110 Hancock Holding Co. 63
968 Harleysville National Corp. 39
1,550 Heritage Financial Services, Inc. 54
3,128 Hubco, Inc. 110
4,581 Imperial Bancorp* 134
3,364 Imperial Credit Industries, Inc.* 71
900 Investors Financial Services Corp. 45
1,800 Irwin Financial Corp. 49
7,109 Keystone Financial, Inc. 277
1,500 Klamath First Bancorp 30
1,900 Liberty Corp. 96
4,494 Magna Group, Inc. 250
1,700 Mainstreet Bankgroup, Inc. 52
1,100 Merchants New York Bancorp 44
3,374 MidAm, Inc. 86
2,300 Mid-America Bancorp 62
900 Mississippi Valley Bancshares, Inc. 35
2,400 National Bancorp of Alaska, Inc. 77
1,509 National City Bancshares, Inc. 60
1,268 National Penn Bancshares, Inc. 43
1,270 NBT Bancorp, Inc. 42
1 North Fork Bancorporation, Inc 0
2,200 Ocean Financial Corp. 42
3,819 Old National Bancorp 183
1,200 Omega Financial Corp. 45
3,731 One Valley Bancorp, Inc. 131
1,450 Oriental Financial Group 62
1,000 Park National Corp. 95
12,068 Peoples Heritage Financial Group, Inc. 272
</TABLE>
See accompanying notes to financial statements.
50
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------
<C> <S> <C>
3,252 Provident Bankshares Corp. $ 102
2,410 Republic Bancorp, Inc. 45
2,900 Riggs National Corp. 79
1,700 S & T Bancorp, Inc. 91
2,000 Santa Barbara Bancorp 56
2,800 Security Capital Corp. 62
3,000 Silicon Valley Bancshares* 98
1,700 Southwest Bancorporation of Texas* 67
19,365 Sovereign Bancorp, Inc. 343
4,719 St. Paul Bancorp, Inc. 119
2,950 Sterling Bancshares, Inc. of Texas 50
3,200 Stratus Computer, Inc.* 115
600 Student Loan Corp. 29
300 Sumitomo Bank of California 11
3,162 Susquehanna Bancshares, Inc. 117
2,200 T.R. Financial Corp. 98
1,950 Texas Regional Bancshares, Class A 62
1,900 Triangle Bancorp, Inc. 55
2,300 Trust Co. of Jersey City 63
3,330 Trustco Bank Corp. 95
8,900 Trustmark Corp. 190
2,263 UMB Financial Corp. 124
4,100 United Bankshares, Inc. 103
2,600 Us Trust Corp 195
700 USBancorp, Inc. 56
3,700 UST Corp. 103
1,900 Vermont Financial Services Corp. 54
3,800 Webster Financial Corp. 128
2,250 Wesbanco, Inc. 59
1,600 West Coast Bancorp of Oregon 40
5,900 Westamerica Bancorp 182
1,418 Westcorp, Inc. 17
5,800 Westernbank Puerto Rico 99
2,875 Whitney Holding Corp. 158
--------
9,837
--------
BITUMINOUS COAL AND LIGNITE SURFACE MINING--
0.2%
3,400 Arch Coal, Inc. 82
1,000 Nacco Industries, Inc. 147
--------
229
--------
BROKERAGE AND FINANCIAL SERVICES--3.3%
300 Ameritrade Holdings Corp., Class A* 9
5,500 Amresco, Inc.* 186
5,600 Arcadia Financial, Ltd.* 42
2,800 Bank Plus Corporation* 36
3,900 Bank United Corp., Class A 195
687 BOK Financial Corp.* 34
300 Capital Factors Holdings, Inc.* 6
3,200 Century Business Services, Inc.* 55
2,500 Cityscape Financial Corp.* 1
3,100 CMAC Investment Corp. 188
4,625 Commercial Federal Corp. 154
5,050 Crawford & Co., Class B 92
3,100 Credit Acceptance Corp.* 32
6,300 Crimmi Mae, Inc. 96
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
<C> <S> <C>
1,800 Dain Rauscher Corp. $ 102
700 Delta Financial Corp.* 12
1,800 Dime Community Bancorp, Inc. 52
4,400 Doral Financial Corp. 73
800 Everen Capital Corp. 41
1,350 Financial Federal Corp.* 32
2,400 First Colorado Bancorp, Inc. 68
1,200 First Federal Capital Corp. 42
875 First Federal Financial Corp.* 27
2,267 First Financial Bancorp 130
1,900 First Financial Holdings, Inc. 44
1,357 First Indiana Corp. 34
1,400 First Republic Bank* 47
1,400 First Savings Bank of Washington 36
3,600 Firstplus Financial Group* 144
700 Flagstar Bancorp, Inc. 17
800 Fund American Enterprise Holdings, Inc. 117
1,500 Grand Premier Financial, Inc. 25
2,500 Hambrecht & Quist Group* 77
4,806 Harbor Florida Bancorp, Inc. 59
1,200 Harris Financial, Inc. 31
2,500 HFNC Financial Corp. 32
3,700 IMC Mortgage Company* 49
3,200 Insignia Financial Group, Inc., Class A* 79
1,200 Interwest Bancorp, Inc. 55
500 Investment Technology Group, Inc.* 14
2,500 Jefferies Group, Inc. 115
3,133 Legg Mason, Inc. 189
3,100 Long Beach Financial Corp.* 36
3,300 Long Island Bancorp, Inc. 204
2,680 McDonald & Co. Investments, Inc. 80
21,300 Mercury Finance Co.* 5
500 Metris Companies, Inc. 29
3,537 Morgan Keegan, Inc. 81
3,800 Ocwen Financial Corp.* 93
2,500 Pff Bancorp, Inc.* 49
6,350 Phoenix Investment Partners, Ltd. 60
3,200 Pioneer Group, Inc. 91
1,800 Queens County Bancorp, Inc. 79
4,975 Raymond James Financial, Inc. 150
1,400 Reliance Bancorp, Inc. 53
1,896 Resource Bancshares Mortgage Group, Inc. 33
6,000 Roslyn Bancorp, Inc. 141
1,600 SEI Corp. 107
1,100 Southern Pacific Funding Corp.* 17
700 St. Francis Capital Corp. 29
300 Value Line, Inc. 13
770 WFS Financial, Inc.* 7
1,500 WSFS Financial Corp.* 32
--------
4,258
--------
CHEMICALS, ALLIED PRODUCTS AND PHARMACEUTICALS--
3.7%
3,300 Affymetrix, Inc.* 89
3,100 Albermarle Corp. 75
2,300 Alberto-Culver Co., Class B 68
</TABLE>
See accompanying notes to financial statements.
51
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
CHEMICALS, ALLIED PRODUCTS AND PHARMACEUTICALS--
Continued
1,700 Algos Pharmaceuticals Corp.* $ 62
4,600 Alliance Pharmaceutical Corp.* 22
2,200 Alpharma, Inc., Class A 48
1,700 American Safety Razor Co.* 20
4,100 Amylin Pharmaceuticals, Inc.* 17
1,300 Andrx Corp.* 44
1,000 Aphton Corp.* 13
900 Bush Boake Allen, Inc.* 27
1,000 Cadus Pharmaceutical Corp.* 6
5,000 Calgon Carbon Corp. 53
1,300 Carbide/Graphite Group* 42
3,200 Carter-Wallace, Inc. 57
3,900 Cephalone, Inc.* 41
1,300 Chemed Corp. 48
2,900 Chemfirst, Inc. 74
2,900 Cygnus, Inc.* 27
666 Del Laboratories, Inc. 19
3,200 Dexter Corp. 132
1,600 Diagnostic Products Corp. 50
1,500 Emisphere Technologies, Inc.* 24
1,900 Fuller (H.B.) Co. 119
2,100 GelTex Pharmaceuticals, Inc.* 48
1,600 General Chemical Group, Inc. 41
3,300 Geon Co. 71
4,400 Georgia Gulf Corp. 110
2,300 Guilford Pharmaceuticals, Inc.* 42
6,100 Hanna (M.A) Co. 122
1,766 Herbalife International, Inc. 45
8,201 ICN Pharmaceuticals, Inc. 354
4,900 ICOS Corp.* 103
3,300 Immunomedics, Inc.* 17
4,200 Interneuron Pharamaceuticals* 19
3,900 Isis Pharmaceuticals, Inc.* 54
3,200 Jones Medical Industries, Inc. 98
700 Kos Pharmaceuticals, Inc.* 8
1,100 Kronos, Inc.* 39
1,650 KV Pharmaceutical Co., Class B* 34
4,500 Lawter International, Inc. 43
1,300 Learonal, Inc. 39
1,571 Life Technologies, Inc. 54
3,275 Lilly Industrial, Inc. 64
2,800 MacDermid, Inc. 115
900 McWhorter Technologies, Inc.* 25
3,200 Medimmune, Inc.* 160
3,900 Millennium Pharmaceuticals* 69
3,200 Mineral Technologies, Inc. 169
900 Miravant Medical Technologies* 24
3,968 Mississippi Chemical Corp. 66
6,700 NBTY, Inc.* 117
500 NCH Corp. 32
3,400 NL Industries* 68
3,300 Noeprobe Corp.* 14
3,100 OM Group, Inc. 129
9,825 PSS World Medical, Inc.* 123
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------------
<C> <S> <C>
3,100 Regeneron Pharmaceuticals, Inc.* $ 29
3,200 Roberts Pharmaceutical Corp.* 53
4,900 Schulman (A.), Inc. 97
2,700 Scotts Co.* 94
3,800 Sepracor, Inc.* 163
4,400 Sequus Pharmaceuticals, Inc.* 50
800 Sonus Pharmaceuticals, Inc.* 11
1,200 Stepan Co. 38
2,600 Techne Corp.* 46
5,800 Terra Industries, Inc. 59
3,218 Tetra Tech, Inc.* 71
1,600 Tetra Technologies, Inc.* 35
2,700 Transkaryotic Therapies, Inc.* 81
1,000 USA Detergents, Inc.* 14
1,500 Valhi, Inc. 15
3,600 Vertex Pharmaceuticals, Inc.* 104
1,930 WD-40 Co. 53
4,000 Wellman, Inc. 96
--------
4,802
--------
COMMUNICATIONS--5.6%
1,400 Ackerley Communications, Inc. 28
800 Aerial Communications, Inc.* 5
4,900 Aliant Communications, Inc. 114
2,300 American Mobile Satellite Corp.* 26
3,090 American Radio Systems, Corp. 204
3,900 ANTEC Corp.* 75
900 BET Holdings, Inc.* 56
2,400 Black Box Corp.* 96
919 Block Drug Co., Inc. 40
2,500 Bowne & Co., Inc. 107
6,924 Brightpoint, Inc.* 109
3,775 Cable Design Technologies Corp.* 89
4,300 Cablevision Systems, Class A* 238
2,200 California Microwave* 47
1,900 Cellstar Corp.* 57
2,250 Cellular Communications International, Inc.* 106
3,280 Cellular Technical Services, Inc.* 3
4,600 Century Communications Corp., Class A* 73
1,900 CFW Communications Co. 48
2,000 CIDCO, Inc.* 16
1,466 Commonwealth Telephone Enterprise* 44
6,750 Comsat Corp. 235
1,200 Consolidated Graphics, Inc.* 61
1,900 Corecomm, Inc.* 40
1,300 Cox Radio, Inc., Class A* 55
1,300 Data Transmission Network Corp.* 50
1,150 Davox Corp.* 21
5,700 DSP Communications, Inc.* 105
1,400 Echostar Communications, Class A* 36
1,200 Emmis Broadcasting Corp., Class A* 53
300 Forrester Research, Inc.* 11
1,400 General Communications, Inc.* 8
4,450 Hawaiian Electric Industries 170
3,100 Heftel Broadcasting Corp., Class A* 117
3,600 HighwayMaster Communications, Inc.* 13
</TABLE>
See accompanying notes to financial statements.
52
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------------
<C> <S> <C>
1,800 Integrated Circuit Systems* $ 25
2,500 Intermedia Communications, Inc.* 185
2,300 IXC Communications, Inc.* 100
6,700 Jacor Communications, Inc.* 354
2,300 Jones Intercable, Inc., Class A* 49
6,660 Journal Register Co.* 132
2,950 Lamar Advertising Co.* 94
4,200 Level One Communications, Inc.* 112
2,300 Mail-Well, Inc.* 106
1,700 Mastec, Inc.* 35
5,100 Mcleodusa, Inc., Class A* 212
1,700 Media General, Inc. 78
1,100 Metro Networks, Inc.* 44
6,357 Metromedia International Group, Inc.* 86
3,933 NTL, Inc.* 160
1,400 Ods Networks, Inc.* 10
4,300 Omnipoint Corp.* 88
1,700 On Command Corp.* 23
3,500 Outdoor Systems, Inc.* 105
5,100 P-COM, Inc.* 77
1,200 Pacific Gateway Exchange, Inc.* 51
1,498 Park Electrochemical Corp. 36
2,400 Paxson Communications Corp.* 28
2,000 Periphonics Corp.* 20
2,400 Plantronics, Inc.* 110
2,200 Powertel, Inc.* 40
700 Precision Response Corporation* 5
2,100 Primus Telecommunications Group* 39
1,000 Quest Communications, Corp. 35
4,500 RCN Corporation* 97
1,300 SAGA Communications, Inc.* 27
1,000 Sawtek, Inc.* 26
1,100 SFX Broadcasting, Inc., Class A 83
2,800 Sinclair Broadcast Group A* 71
6,800 Skytel Communications, Inc.* 154
1,400 Smartalk Teleservices, Inc.* 26
2,200 Snyder Communications, Inc.* 89
2,300 TCA Cable TV, Inc. 140
7,400 TCI Satellite Entertainment, Class A* 42
4,700 Tel-Save Holdings, Inc.* 93
3,600 Telespectrum Worldwide, Inc.* 31
1,200 TMP Worldwide, Inc.* 31
1,250 Transaction Network Services, Inc.* 25
2,900 True North Communications, Inc. 92
3,800 United International Holdings, Inc., Class A* 63
600 United Television, Inc. 66
1,700 United Video Satellite Group, Inc.* 66
5,200 Vanguard Cellular Systems, Inc.* 93
3,500 Waters Corp.* 204
2,600 West Teleservices Corp.* 36
9,700 Western Wireless Corp., Class A* 179
3,400 Westwood One, Inc.* 91
4,700 WinStar Communications, Inc.* 176
1,200 Woodward Governor Co. 35
1,700 Young Broadcasting Corp.* 88
--------
7,119
--------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
<C> <S> <C>
COMPUTERS AND OFFICE MACHINES--5.2%
500 Act Manufacturing, Inc.* $ 4
2,800 Actel Corp.* 36
3,600 Alliance Semiconductor Corp.* 17
3,500 American Business Info., Class B* 44
5,700 American Management Systems* 155
700 Apex Pc Solutions, Inc.* 18
1,000 Applied Graphics Technologies* 48
1,500 Arqule, Inc.* 21
1,000 Aspect Development, Inc.* 57
2,400 Atmi, Inc.* 44
3,700 Auspex Systems, Inc.* 21
3,200 Avid Technology, Inc.* 130
2,100 Aware, Inc.* 23
700 BA Merchants Services, Inc.* 13
3,166 BancTec, Inc.* 74
2,400 BEA Systems, Inc.* 48
3,776 Boole & Babbage, Inc.* 93
5,500 Borland International, Inc.* 46
1,400 BT Office Products International, Inc.* 19
1,100 CACI International, Inc., Class A* 22
1,596 Cambrex Corp. 89
2,900 CCC Information Services Group.* 66
800 CFM Technologies, Inc.* 9
8,700 Cirrus Logic, Inc.* 87
1,200 Claremont Technology Group* 24
1,000 CNET, Inc.* 36
1,000 Complete Business Solutions* 26
5,930 Converse Technology, Inc.* 296
7,000 Copytele, Inc.* 24
1,200 Cybermedia, Inc.* 7
2,700 Cylink Corp.* 27
1,300 Data Dimensions, Inc.* 18
6,500 Data General Corp.* 99
1,400 Day Runner, Inc.* 31
900 Deltek Systems, Inc.* 19
1,300 Dialogic Corp.* 43
4,200 Diamond Multimedia Systems, Inc.* 32
700 Digital Link Corp.* 6
600 Dupont Photomasks, Inc.* 26
1,200 E* Trade Group, Inc.* 41
1,700 Edify Corp.* 18
1,600 Encad, Inc.* 17
1,300 Evans & Sutherland Computer Corp.* 33
3,000 Exabyte Corp.* 29
1,400 Exar Corp.* 32
600 Factset Research Systems, Inc.* 19
2,100 Filenet Corp.* 116
2.200 Fonix Corp.* 9
2,800 Forte Software, Inc.* 14
4,400 FTP Software, Inc.* 12
700 General Binding Corp. 24
3,800 GT Interactive Software Corp.* 36
5,400 HMT Technology Corp.* 63
2,600 Hyperion Software Corp.* 84
</TABLE>
See accompanying notes to financial statements.
53
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
COMPUTERS AND OFFICE MACHINES--Continued
800 I2 Technologies, Inc.* $ 48
1,500 Indus International, Inc.* 14
3,500 Industri-Matematik Intl. Corp.* 56
1,500 Information Management Resources* 34
4,200 Information Resources, Inc.* 74
6,000 Intergraph Corp.* 53
2,800 International Network Services* 88
7,400 International Rectifier Corp.* 78
1,900 Interpool, Inc. 28
1,800 Itron, Inc.* 28
5,700 Learning Company, Inc.* 162
2,000 LHS Group, Inc.* 116
2,075 Lycos, Inc.* 110
4,500 Macromedia, Inc.* 71
1,800 Mastech Corporation* 34
1,300 Medical Manager Corp.* 33
2,400 Mercury Interactive Corp.* 80
700 Metro Information Services, Inc.* 23
1,700 Micro Linear Corp.* 8
820 Microprose, Inc. 4
1,200 Micros Systems, Inc.* 71
1,100 Microtouch Systems, Inc.* 18
4,173 Midway Games, Inc.* 56
2,900 Mylex Corp.* 20
3,900 National Computer Systems, Inc. 95
2,300 National Techteam, Inc.* 21
1,400 Neomagic Corp.* 21
3,900 Network Data Process Corp. 136
2,100 Network Computing Devices* 18
3,400 Object Design, Inc.* 18
1,400 Objective Systems Integrator* 10
2,500 Open Market, Inc.* 40
700 Pegasystems, Inc.* 15
2,300 Phoenix Technologies Ltd.* 23
8,798 Platinum Technology, Inc.* 241
2,100 Plexus Corp.* 45
4,100 PMC-Sierra, Inc.* 160
1,400 Proxim, Inc.* 18
900 Radiant Systems, Inc.* 15
900 Radisys, Inc.* 24
1,800 Rambus, Inc.* 70
10,685 Rational Software Corp.* 163
6,400 Read-Rite Corp.* 56
7,200 S3, Inc.* 47
3,700 Safeguard Scientifics, Inc.* 159
2,700 Sandisk Corp.* 44
2,700 Santa Cruz Operation, Inc.* 13
800 Seachange International, Inc.* 7
1,500 Semtech Corp.* 32
5,900 Sequent Computer Systems, Inc.* 98
4,000 Shiva Corp.* 38
7,848 Siebel Systems, Inc.* 179
3,600 SMART Modular Technologies, Inc.* 49
1,700 Splash Technology Holdings, Inc.* 29
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------
<C> <S> <C>
500 Sunquest Information Systems* $ 4
1,400 Sykes Enterprises, Inc.* 29
3,975 Sylvan Learning Systems, Inc.* 121
2,400 Synetic, Inc.* 142
3,550 Technology Solutions Co.* 107
2,600 Transition Systems, Inc,* 52
2,620 Triarc Cos., Inc., Class A* 64
1,700 Trident Microsystems, Inc.* 12
2,700 USCS International, Inc.* 51
1,900 Walker Interactive Systems* 30
1,400 Wall Data, Inc.* 18
5,200 Wang Labs, Inc.* 125
4,500 Xylan Corp.* 109
2,500 Zebra Technologies Corp.* 96
2,300 Zitel Corp.* 18
--------
6,614
--------
CREDIT INSTITUTIONS--0.3%
3,272 Astoria Financial Corp. 180
1,600 IBS Financial Corp. 30
1,200 JSB Financial, Inc. 70
2,100 Ryland Group, Inc. 42
--------
322
--------
ELECTRICAL SERVICES--2.5%
1,500 Advanced Lighting Technologies, Inc.* 38
3,150 Black Hills Corp. 69
3,200 Cleco Corp. 96
5,900 Checkfree Corp.* 134
2,000 CILCORP, Inc. 88
13,725 Conectiv, Inc.* 281
2,900 Eastern Utilities Association 74
8,700 El Paso Electric Co.* 83
2,600 Electroglas, Inc.* 35
2,400 Empire District Electric Co. 49
2,400 Envoy Corp.* 105
10,370 Interstate Energy Corp. 312
2,350 Madison Gas & Electric Co. 50
4,700 Minnesota Power & Light Co. 185
6,900 Nevada Power Co. 165
1,900 Orange & Rockland Utilities, Inc. 102
1,700 Otter Tail Power Co. 54
6,500 PMT Services, Inc.* 127
5,700 Public Service Co. of New Mexico 124
5,300 Rochester Gas & Electric Corp. 163
4,300 Sierra Pacific Resources 148
3,450 SIGCORP, Inc. 108
1,500 TNP Enterprises, Inc. 49
4,580 Unisource Energy Corp.* 72
2,100 United Illuminating Co. 99
7,650 Washington Water Power Co. 165
3,200 WPS Resources Corp. 100
1,550 Yankee Energy System, Inc. 37
1,800 Zurn Industries, Inc. 75
--------
3,187
--------
</TABLE>
See accompanying notes to financial statements.
54
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
ELECTRONICS AND OTHER ELECTRICAL EQUIPMENT--
5.7%
900 ADE Corp.* $ 14
2,700 Adtran, Inc.* 66
600 Advanced Energy Industries, Inc.* 9
975 AFC Cable Systems, Inc.* 33
3,400 Allen Telecom, Inc. * 41
2,400 Alpine Group, Inc. * 48
1,900 Altron, Inc.* 21
4,500 Ametek, Inc. 130
5,600 Ampex Corp.* 13
2,400 Amphenol Corp., Class A* 131
2,100 ANADIGICS, Inc.* 30
5,100 Anixter International, Inc.* 103
3,422 Applied Magnetics Corp.* 19
6,800 Aspect Telecommunications, Inc.* 176
2,100 Associated Group, Inc.* 74
3,375 Avant! Corp.* 87
3,693 Baldor Electric Co. 96
3,300 Belden, Inc. 131
1,700 Benchmark Electronics, Inc.* 34
2,500 Berg Electronics Corp.* 52
4,000 BMC Industries, Inc. 59
4,875 Burr-Brown Corp.* 125
900 C & D Technologies, Inc. 50
4,500 C-Cube Microsystems, Inc.* 88
2,900 Calpine Corporation* 52
5,100 Cellnet Data Systems, Inc.* 52
2,500 Central Hudson Gas & Electric 109
4,700 Central Maine Power Co. 90
4,800 Checkpoint Systems, Inc.* 85
1,400 Coherent Communications Systems Corp.* 66
1,400 Cohu, Inc. 43
2,600 Commonwealth Energy System 99
3,100 Credence Systems Corp.* 65
1,509 CTS Corp. 47
4,100 Cymer, Inc.* 78
900 Digital Lightwave, Inc.* 4
5,500 Digital Microwave Corp.* 53
3,700 DII Group* 70
1,100 Dynatech, Corp.* 4
6,200 EG&G, Inc. 195
2,168 Electro Rent Corp.* 52
1,400 Electro Scientific Industries, Inc.* 47
1,000 Eltron International, Inc.* 22
1,200 Encore Wire Corp.* 37
2,300 ESS Technology, Inc.* 10
1,600 Essex International, Inc.* 39
2,400 Esterline Technologies Corp.* 52
2,100 FEI Company* 19
5,578 Flowserve Corporation 162
3,600 General Cable Corp. 95
2,800 General DataComm Industries, Inc.* 13
1,300 Geotel Communications Co.* 35
8,200 Glenayre Technologies, Inc.* 126
4,400 Griffon Corp.* 61
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------
<C> <S> <C>
1,600 HADCO Corp.* $ 51
2,610 Harman International Industries, Inc. 111
1,600 Holophane Corp.* 42
2,800 Hutchinson Technologies, Inc.* 70
1,400 Imnet Systems, Inc.* 16
11,000 Integrated Device Technology, Inc.* 103
3,000 Inter-Tel, Inc. 56
6,900 Interdigital Communications Corp.* 38
2,100 Intervoice, Inc.* 28
500 JPM Company* 5
2,700 Juno Lighting, Inc. 57
2,300 Kuhlman Corp. 97
900 Lecroy Corp.* 18
3,300 Lincoln Electric Co. 146
2,800 Littelfuse, Inc.* 64
2,700 Lojack Corp.* 34
5,300 LTX Corp.* 20
3,700 Magnetek, Inc.* 63
4,050 Methode Electronics, Inc., Class A 52
1,800 Micrel, Inc.* 56
1,100 Moog, Inc., Class A* 43
2,800 MRV Communications, Inc. 65
800 National Presto Industries, Inc. 32
1,600 Natural Microsystems Corp.* 34
4,000 NexGen Inc. 40
2,200 North Pittsburgh Systems 35
2,578 Northwestern Corporation 62
2,540 Oak Industries, Inc.* 89
400 Optical Cable Corp.* 4
4,900 Pagemart Wireless, Inc., Class A* 44
14,100 Paging Network, Inc.* 193
1,200 Perceptron, Inc.* 15
5,500 Picturetel Corp.* 52
3,837 Pioneer Standard Electronics, Inc. 48
600 Powerwave Technologies, Inc.* 12
3,700 Premisys Communications, Inc.* 92
2,075 PriCellular Corp.* 28
4,400 Ramtron International Corp.* 18
3,300 Robotic Vision Systems, Inc.* 21
1,700 Rofin-Sinar Technologies, Inc.* 32
2,600 Sammina Corp.* 202
1,900 SDL, Inc.* 42
1,300 Sheldahl, Inc.* 13
4,300 Silicon Valley Group, Inc.* 79
1,400 Siliconix, Inc.* 38
1,000 Sipex Corporation* 22
1,500 Spectrian Corp.* 25
1,000 Speedfam International, Inc.* 20
1,000 SPS Transaction Services, Inc.* 31
1,200 Standard Motor Products, Inc.* 26
1,500 Stanford Telecommunications, Inc.* 21
1,175 Superior Telecom, Inc. 47
1,700 Supertex, Inc.* 18
2,300 Symetricon, Inc.* 15
2,000 Technitrol, Inc. 81
</TABLE>
See accompanying notes to financial statements.
55
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
ELECTRONICS AND OTHER ELECTRICAL EQUIPMENT--Continued
1,400 Tekelec* $ 62
400 Thermedics Detection, Inc.* 4
2,600 Thermedics, Inc.* 37
500 Thermo Optek Corp.* 8
500 Thermoquest Corporation * 8
500 ThermoSpectra Corp.* 6
2,250 Thomas Industries, Inc. 58
1,200 Triquint Semiconductor, Inc.* 27
1,700 Triumph Group, Inc.* 83
2,700 Ultratech Stepper, Inc.* 55
4,700 Uniphase Corp.* 240
3,500 Unitrode Corp.* 46
2,700 Valence Technology, Inc.* 16
1,200 Veeco Instruments, Inc.* 35
4,600 Vicor Corp.* 72
2,200 Westell Technologies, Inc., Class A* 22
2,600 Windmere Corp.* 82
1,500 Woodhead Industries, Inc. 27
2,800 World Access, Inc.* 88
900 Yurie Systems, Inc.* 32
4,047 Zenith Electronics Corp.* 2
1,400 Zygo Corp.* 25
--------
7,313
--------
FOOD AND BEVERAGES--1.9%
4,200 Applebee's International, Inc. 102
5,700 Bob Evans Farms, Inc. 121
1,800 Boston Beer Co., Inc.* 20
1,626 California Water Service Co. 36
2,100 Canandaigua Wine Company, Inc.* 97
2,200 Cheesecake Factory, Inc.* 44
300 Coca-Cola Bottling Co. 19
4,900 Coors (Adolph) Co., Class B 184
3,300 Dreyer's Grand Ice Cream, Inc. 84
3,000 Earthgrains Co. 158
1,000 Fine Host Corp.* 4
5,200 Fleming Companies, Inc. 99
2,500 Great Atlantic & Pac Tea Co. 80
5,000 Host Marriott Services Corp.* 71
1,300 IHOP Corp.* 53
2,500 International Multifoods Corp. 74
2,500 Lance, Inc. 53
3,300 Landry's Seafood Restaurants, Inc.* 75
5,100 Lone Star Steakhouse Saloon, Inc.* 86
3,400 Luby's Cafeterias, Inc. 63
1,900 Michael Foods, Inc. 53
500 Mondavi (Robert) Corp., Class A* 18
600 National Beverage Corp.* 6
2,650 Papa Johns International, Inc.* 110
3,150 Rainforest Cafe, Inc.* 44
1,300 Rare Hospitality Intl, Inc.* 16
6,500 Richfoods Holdings, Inc. 159
1,000 Riviana Foods, Inc. 22
4,200 Ruby Tuesday, Inc. 67
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
<C> <S> <C>
6,800 Ryan's Family Steak Houses, Inc.* $ 69
1,850 Sbarro, Inc.* 54
6,300 Shoney's Inc.* 28
4,200 Smithfield Foods, Inc.* 113
2,760 Suiza Foods Corp.* 161
700 United Natural Foods, Inc.* 18
1,400 Worthington Foods, Inc. 20
--------
2,481
--------
FOOD AND MANUFACTURING--0.5%
1,800 Dominick's Supermarkets, Inc.* 78
4,878 JP Foodservice 162
98 Farmer Bros. Co. 20
1,850 Performance Food Group Co.* 35
4,700 Ralcorp Holding, Inc.* 100
900 Sanderson Farms, Inc. 10
100 Seaboard Corp. 27
3,300 Smucker (J.M.) Co. 79
900 TurboChef, Inc.* 8
7,000 Universal Foods Corp. 167
--------
686
--------
FURNITURE AND FIXTURES--0.7%
1,900 Bassett Furniture Industries, Inc. 58
1,200 Bush Industries, Inc. 32
1,900 CORT Business Services Corp.* 74
3,700 Ethan Allen Interiors, Inc. 186
7,800 Heilig-Meyers Co. 94
5,000 Kimball International, Inc. 123
1,600 Knoll, Inc.* 51
2,100 La-Z-Boy Chair Co. 107
3,200 Royal Appliance Manufacturing Co.* 17
2,075 SLI, Inc. 59
2,100 Triangle Pacific Corp.* 93
--------
894
--------
GENERAL BUILDING CONTRACTORS--1.1%
1,500 ABT Building Products Corp.* 21
3,600 AMCOL International Co. 50
3,000 Blount, Inc. 85
3,158 D. R. Horton, Inc. 57
3,500 Eagle Hardware & Garden, Inc.* 64
4,900 Fairfield Communities, Inc. * 100
3,900 Fleetwood Enterprises 156
5,300 Kaufman & Broad Home Corp. 136
1,300 N V R, Inc. * 42
900 NCI Building Systems, Inc.* 48
6,350 Oakwood Homes 173
2,156 Palm Harbor Homes, Inc.* 90
2,100 Pulte Corp. 112
4,300 Standard Pacific Corp. 74
3,400 Toll Brothers, Inc.* 88
1,679 U.S. Home Corp.* 68
2,100 Webb (Del E.) Corp. 51
--------
1,415
--------
</TABLE>
See accompanying notes to financial statements.
56
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
<C> <S> <C>
GLASS, CLAY AND STONE PRODUCTS--0.7%
600 Ameron, Inc. $ 36
4,100 Ball Corp. 162
1,500 Centex Construction Products, Inc. 57
4,800 Gentex Corp.* 176
2,300 Medusa Corp. 133
1,290 Mikasa, Inc. 16
2,600 Photronics, Inc.* 69
600 Puerto Rican Cement Co. 32
3,200 Southdown, Inc. 210
--------
891
--------
HEALTH SERVICES--4.4%
2,700 Access Health Marketing, Inc.* 69
2,400 Alternative Living Services* 65
1,500 American HomePatient, Inc.* 25
4,000 Apogee, Inc. 56
7,400 Apria Healthcare Group, Inc.* 56
8,500 Arterial Vascular Engineer* 263
2,100 ATL Ultrasound, Inc.* 95
1,200 Atria Communities, Inc.* 21
2,300 AXYS Pharmaceuticals, Inc.* 18
1,200 Barr Labs, Inc.* 49
1,200 Bio-Rad Labs, Inc.* 38
1,600 Cardiothoracic Systems, Inc.* 8
1,200 Carematrix Corporation* 28
3,500 Cerner Corp.* 90
900 Closure Medical Corporation* 23
1,500 Compdent Corp.* 22
1,800 Cooper Companies, Inc.* 71
3,400 COR Therapeutics, Inc.* 58
7,850 Covance, Inc.* 166
5,300 Coventry Health Care Inc.* 77
4,800 Creative BioMolecules, Inc.* 29
1,800 Curative Health Services, Inc.* 51
3,094 Enzo Biochem, Inc.* 40
2,000 Fuisz Technologies, Ltd.* 24
10,800 Gensia, Inc.* 46
3,000 Graham Field Health PDS* 18
3,200 Haemonetics Corp.* 49
1,743 HealthPlan Services Corp. 39
2,200 Heartport, Inc.* 18
3,100 Human Genome Sciences, Inc.* 113
1,900 I-STAT Corp.* 18
2,800 IDEC Pharmaceuticals Corp.* 88
4,700 Idexx Laboratories, Inc.* 105
900 IDX Systems Corp.* 38
11,300 Imatron, Inc.* 31
2,800 Incyte Pharmaceuticals, Inc.* 103
2,200 Inhale Therapeutic Systems* 73
5,548 Integrated Health Services 206
3,900 Invacare Corp. 103
800 Lab Holdings, Inc. 18
300 LabOne, Inc. 5
6,800 Laboratory Corp. of American Holdings* 14
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
<C> <S> <C>
1,200 Landauer, Inc. $ 34
4,158 Ligand Pharmaceuticals, Inc.* 58
4,200 Magellan Health Services, Inc.* 113
3,300 Mariner Health Group, Inc.* 49
2,000 Martek Biosciences Corp.* 25
2,600 Maxicare Health Plans, Inc.* 24
1,700 Medical Resources, Inc.* 5
2,200 Medicis Pharmaceutical, Class A* 90
1,800 Mediq, Inc 25
1,000 MiniMed, Inc.* 50
1,700 MMI Cos., Inc. 38
1,533 Morrison Health Care, Inc. 26
1,300 Myriad Genetics, Inc.* 26
4,700 Nabi, Inc.* 17
2,300 National Surgery Centers, Inc.* 64
2,800 NCS Healthcare, Inc., Class A* 81
2,500 Neurex Corp.* 70
1,700 Neurogen Corp.* 29
4,500 Neuromedical Systems, Inc.* 7
8,300 Novacare, Inc.* 91
2,800 Nova Corp.* 92
2,800 Oakley, Inc.* 37
1,900 Oec Medical Systems, Inc.* 42
2,600 OIS Optical Imaging Systems, Inc.* 3
800 Oxigene, Inc.* 11
3,600 Paracelsus Healthcare Corp.* 11
1,500 Paragon Health Network, Inc.* 7
2,300 PathoGenesis Corp.* 83
1,500 Pediatrix Medical Group* 54
900 Perclose, Inc.* 23
9,100 Perrigo Co.* 100
3,300 Pharmos Corp. 40
900 PHP Healthcare Corp.* 8
2,300 Prime Medical Services, Inc.* 24
2,100 Psychemedics Corp. 12
4,300 Quest Diagnostics, Inc.* 93
3,200 Renal Care Group, Inc.* 116
1,100 RES-CARE, Inc.* 35
4,500 Rexall Sundown, Inc.* 151
500 RightChoice Managed Care, Inc., Class A* 6
1,900 Rural/Metro Corp.* 45
1,300 Sabratek Corp.* 34
4,700 Safeskin Corp.* 165
2,300 Serologicals Corp.* 68
5,880 Sun Healthcare Group, Inc.* 99
1,400 Sunrise Assisted Living, Inc.* 42
2,500 Thermo Cardiosystems, Inc.* 56
2,000 Thermolase Corp.* 12
9,472 Total Renal Care Holdings* 291
900 Trex Medical Corp.* 15
2,000 Triangle Pharmaceuticals, Inc.* 31
2,600 Twinlab Corporation* 97
1,300 Universal Health Realty Income Trust 25
2,900 Veterinary Centers of America, Inc.* 55
2,100 Vical, Inc.* 34
</TABLE>
See accompanying notes to financial statements.
57
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
HEALTH SERVICES--Continued
2,021 Vitalink Pharmacy Services, Inc.* $ 44
4,800 Vivus, Inc.* 44
4,300 Zila, Inc.* 33
--------
5,587
--------
HEAVY CONSTRUCTION--0.6%
2,200 American Residential Services 25
5,100 Dal-Tile International, Inc.* 71
1,950 Elcor Corp. 52
1,900 Florida Rock Industries, Inc. 59
1,400 Giant Cement Holdings, Inc.* 36
1,750 Granite Construction, Inc. 49
5,903 Lennar Corp. 156
1,500 Lone Star Industries, Inc. 113
400 Mestek, Inc.* 8
1,891 Morrison Knudsen Corp.* 22
1,300 Nortek, Inc.* 40
1,400 Republic Group, Inc. 27
1,200 Synthetic Industries, Inc.* 25
2,200 TJ International, Inc. 64
2,500 Watsco, Inc. 73
--------
820
--------
INDUSTRIAL INSTRUMENTS--2.4%
3,100 Acuson Corp.* 59
2,700 ADAC Laboratories* 54
3,000 Alkermes, Inc.* 66
1,000 Analogic Corp. 46
1,900 Arrow International, Inc. 66
4,596 Artesyn Technologies, Inc.* 75
4,200 Ballard Medical Products 94
2,300 Barnett, Inc.* 42
1,600 Biomatrix, Inc.* 54
3,900 Buckeye Cellulose Corp.* 88
4,900 Cincinnati Milacron, Inc. 147
1,800 Circon Corp.* 25
2,600 CNS, Inc.* 11
4,700 Cognex Corp.* 89
3,300 Coherent, Inc.* 76
1,950 Commercial Intertech Corp. 37
2,150 CONMED Corp.* 45
776 Cubic Corp. 23
2,200 Cytyc Corp.* 37
2,200 Daniel Industries, Inc. 45
1,900 Datascope Corp.* 53
1,600 Dionex Corp.* 84
3,100 Etec Systems, Inc.* 113
5,100 Ferro Corp. 146
2,000 Fluke (John) Manufacturing Co., Inc. 64
3,900 Genrad, Inc.* 68
4,100 Gilead Sciences, Inc.* 133
775 Hach Co. 7
1,700 Hologic, Inc.* 36
3,600 Kennametal, Inc. 173
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
800 Lunar Corp.* $ 15
2,100 Marquette Medical Systems, Inc.* 59
3,800 Mascotech, Inc. 93
3,564 Mentor Corp. 94
500 Mine Safety Appliances Co. 36
2,600 MTS Systems Corp. 49
2,500 Physio-Control International Corp.* 53
1,800 Possis Corp.* 20
4,554 Respironics, Inc.* 75
2,300 SangStat Medical Corp.* 60
1,700 Staar Surgical Co.* 21
1,000 Starrett (L.S.) Co. 39
2,500 Sunrise Medical, Inc.* 39
900 Tech-Sym Corp.* 26
3,400 Theragenics Corp.* 95
2,200 Theratech, Inc.* 21
3,200 Trimble Navigation, Ltd.* 63
800 Vital Signs, Inc. 14
1,196 Watkins-Johnson Co. 30
2,200 X-Rite, Inc. 30
1,500 Zoltek Companies, Inc.* 46
--------
3,034
--------
INSURANCE SERVICES--4.1%
1,800 Acceptance Insurance Cos., Inc.* 41
2,700 Alfa Corp. 53
3,262 Allied Group, Inc. 137
1,224 American Annuity Group, Inc. 30
2,300 American Heritage Life Investment Corp. 48
3,200 Amerin Corp.* 96
2,349 Amerus Life Holdings, Class A 75
2,800 Argonaut Group, Inc. 90
1,700 Baldwin & Lyons, Inc. 41
3,200 Berkley (W.R.) Corp. 150
1,500 Blanch (E.W.) Holdings, Inc. 56
1,600 Capital RE Corp. 119
1,200 Capitol Transamerica Corp. 25
1,200 Chartwell Re Corporation 35
900 Citizens Corporation 29
5,000 CNA Surety Corporation* 81
2,800 Commerce Group, Inc. 100
1,938 Delphi Financial Group, Inc.* 105
1,800 Enhance Financial Services Group, Inc. 117
1,600 Executive Risk, Inc. 101
4,600 FBL Financial Group, Inc., Class A* 129
4,074 FINL Security Assurance Holdings, Inc. 241
2,150 First American Financial, Corp. 155
3,100 Foremost Corp. of America 76
3,412 Fremont General Corp. 195
3,968 Frontier Insurance Group, Inc. 97
2,685 Gainsco, Inc. 20
2,400 Gallagher (Arthur J.) & Co. 104
1,300 Guarantee Life Companies, Inc. 35
1,800 Harleysville Group, Inc. 44
3,500 Hartford Life, Class A 180
</TABLE>
See accompanying notes to financial statements.
58
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------------
<C> <S> <C>
5,100 HCC Insurance Holdings, Inc. $ 109
1,900 Highlands Insurance Group, Inc.* 40
1,800 Hilb, Rogal & Hamilton Co. 32
4,050 HSB Group, Inc. 178
3,500 John Alden Financial Corp. 77
500 Kansas City Life Insurance Co. 43
1,300 Life Reinsurance Corp. 96
2,700 Life USA Holding, Inc.* 44
600 Markel Corp.* 104
800 Meadowbrook Insurance Group, Inc. 25
3,075 Medical Assurance, Inc.* 85
2,100 NAC Re Corp. 98
300 National Western Life Insurance Co.* 34
600 Nationwide Financial Services, Class A 26
600 Nymagic, Inc. 18
3,780 Orion Capital Corp. 213
800 Penn Treaty American Corp.* 25
3,900 Penncorp Financial Group, Inc. 86
900 Philadelphia Consolidated Holding Corporation 21
1,525 Poe & Brown, Inc. 57
3,600 Presidential Life Corp. 79
1,751 PXRE Corp. 55
3,400 Reinsurance Group of America, Inc. 170
2,500 Risk Capital Holdings, Inc.* 62
865 RLI Corp. 45
1,800 Scpie Holdings, Inc. 65
4,000 Selective Insurance Group, Inc. 106
2,200 Sierra Health Services, Inc.* 82
850 State Auto Financial Corp. 27
1,750 Trenwick Group, Inc. 67
1,900 Triad Guaranty, Inc.* 63
3,520 United Cos. Financial Corp. 65
1,050 United Fire & Casualty Co. 40
1,200 United Wisconsin Services, Inc. 37
1,800 Vesta Insurance Group, Inc. 95
1,400 Zenith National Insurance Corp. 40
--------
5,314
--------
JEWELRY AND PRECIOUS METALS--0.0%
2,050 Oneida Ltd. 57
--------
LEATHER PRODUCTS--0.2%
2,600 Brown Group, Inc. 47
2,400 Justin Industries, Inc. 38
800 Timberland Co.* 66
2,000 Wolverine Tube, Inc.* 73
--------
224
--------
LUMBER AND WOOD PRODUCTS--0.1%
750 Halter Marine Group, Inc.* 14
4,700 Newport News Shipbuilding 132
1,900 Pope & Talbot, Inc. 26
--------
172
--------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------
<C> <S> <C>
MACHINERY--2.5%
2,500 Aftermarket Technology Corp.* $ 43
600 Ag-Chem Equipment Co., Inc.* 9
1,200 Alamo Group, Inc. 20
1,500 Allied Products Corp. 32
1,500 Asyst Technologies, Inc.* 25
1,600 Avondale Industries, Inc.* 45
91 Bayard Drilling Technologies, Inc.* 1
1,600 Brown & Sharpe Mfg. Co., Class A* 21
1,400 Cascade Corp. 24
1,100 Chart Industries, Inc. 25
1,600 Columbus Mckinnon Corp. 47
1,966 Commercial Metals Co. 60
5,300 Donaldson Co., Inc. 116
1,000 DT Industries, Inc. 29
1,500 Excel Industries, Inc. 30
568 Franklin Electric Co., Inc. 39
3,300 FSI International, Inc.* 38
1,650 Gardner Denver Machinery, Inc.* 45
1,300 Gleason Corp. 38
3,200 Global Industrial Technologies, Inc.* 54
2,645 Graco, Inc. 92
2,400 Helix Technology Corp. 43
900 Hirsch International Corp., Class A* 9
4,025 IDEX Corp. 149
5,500 Imation Corp.* 100
2,700 Indentix, Inc.* 19
2,500 Integrated Process Equipment Corp.* 35
2,300 Ionics, Inc.* 103
6,300 JLG Industries, Inc. 111
4,700 Kaydon Corp. 185
3,400 Kulicke & Soffa Industries, Inc.* 58
1,300 Lindsay Manufacturing Co. 60
2,425 Manitowoc Co., Inc. 99
7,100 Marine Drilling Co., Inc.* 134
8,600 Mentor Graphics Corp. * 95
3,100 Modine Manufacturing Co. 105
4,525 Mohawk Industries, Inc.* 137
2,000 Nordson Corp. 91
2,100 Omniquip International, Inc. 46
1,500 Osmonics, Inc.* 22
599 Pilgrims Pride Corp. 10
3,000 Regal-Beloit Corp. 98
1,148 Robbins & Myers, Inc. 34
4,300 Roper Industries, Inc. 143
1,600 Specialty Equipment Cos., Inc.* 35
1,600 SPX Corp.* 111
3,300 TBC Corp.* 27
1,700 Terex Corp.* 52
1,100 Thermadyne Holdings Corp. 38
1,700 Thermo Fibertek, Inc.* 20
2,625 Titan International, Inc. 51
1,800 Toro Co. 63
600 Tractor Supply Co.* 14
4,700 Varco International, Inc.* 122
--------
3,252
--------
</TABLE>
See accompanying notes to financial statements.
59
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
MANUFACTURING--GENERAL--1.2%
600 Bacou U.S.A., Inc.* $ 11
2,980 Brady (W.H.) Co. 86
1,200 Chase Industries, Inc.* 37
900 Consolidated Cigar Holdings, Inc.* 12
1,230 Comnet Corp 38
2,350 Cuno, Inc.* 48
1,000 DBT Online, Inc.* 22
5,400 First Brands Corp. 134
7,100 Furniture Brands International, Inc.* 209
2,400 General Cigar Holdings, Inc.* 24
3,600 Hayes Lemmerz International, Inc.* 141
2,700 Hexcel Corp.* 74
2,100 Innovex, Inc. 39
600 Insilico Corp.* 26
5,600 Kemet Corp.* 90
900 Matthews International Corp., Class A 45
4,100 Polymer Group, Inc.* 49
1,300 Rockshox, Inc.* 6
2,300 Samsonite Corp.* 66
2,700 Scott Technologies, Inc.* 40
2,200 Seattle Filmworks, Inc.* 19
700 Simpson Manufacturing Co.* 28
1,500 Toy Biz, Inc.* 15
2,400 Tracor, Inc.* 95
600 Tremont Corp.* 34
600 Trigen Energy Corp. 8
1,600 U. S. Can Corporation* 27
500 Wesley Jessen Visioncare* 14
2,100 Westinghouse Air Brake Co. 58
2,500 Wireless Telecom Group, Inc.* 9
--------
1,504
--------
MERCHANDISE--GENERAL--0.8%
1,900 Action Performance Companies, Inc.* 53
500 Aep Industries, Inc.* 14
4,000 American Pad & Paper Co.* 27
3,200 Amerisource Corp.* 174
3,600 Central Garden & Pet Co.* 106
2,600 Church & Dwight Co., Inc. 79
1,300 Cross (A.T.) Co. 15
2,800 Department 56, Inc.* 103
1,500 Henry Schein, Inc. 58
1,300 Hunt Corp. 30
5,200 Jostens, Inc. 131
2,500 Libbey, Inc. 98
3,900 Playtex Products, Inc.* 56
2,700 Silgan Holdings, Inc.* 90
--------
1,034
--------
METAL MINING--0.2%
1,500 Cleveland Cliffs, Inc. 79
3,200 Coeur D'Alene Mines Corp.* 28
4,117 Getchell Gold Corp.* 78
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
7,900 Hecla Mining Co.* $ 40
2,600 Stillwater Mining Co.* 63
--------
288
--------
METAL PRODUCTS--1.0%
1,100 Alltrista Corp.* 28
8,100 Amax Gold, Inc. 26
3,200 Applied Industrial Tech, Inc. 75
2,500 Aptargroup, Inc. 162
1,500 Barnes Group, Inc. 45
950 Butler Manufacturing Co. 33
2,900 Century Aluminum Company 44
1,000 Citation Corp.* 19
3,450 Clarcor, Inc. 79
2,100 Commonwealth Industrial, Inc. 31
5,000 Equitable Resources 143
2,200 Material Sciences Corp.* 22
1,300 Maverick Tube Corp. * 20
4,500 Miller Industries, Inc.* 32
1,700 NN Ball & Roller, Inc. 20
600 Penn Engineering & Manufacturing Corp. 14
2,000 Quanex Corp. 62
800 Ryerson Tull, Inc., Class A* 17
1,400 Shaw Group, Inc.* 34
600 Special Metals Corp.* 10
1,428 SPS Technologies, Inc.* 84
2,400 Titanium Metals Corporation* 58
2,600 Watts Industries, Inc., Class A 61
2,800 Wyman-Gordon Co.* 56
1,800 Zero Corp. 52
--------
1,227
--------
MINING, QUARRYING OF NONMETALLIC MINERAL--0.1%
2,200 Cliff's Drilling Co.* 91
2,100 RMI Titanium Corp.* 45
2,400 Zeigler Coal Holding Co. 44
--------
180
--------
MISCELLANEOUS INVESTING INSTITUTIONS--1.6%
5,724 BRE Properties, Inc. 152
3,400 Burnham Pacific Properties, Inc. 48
8,075 Capstead Mortgage Corp. 147
6,304 Champion Enterprises, Inc.* 170
1,200 Corus Bankshares, Inc. 51
6,000 Franchise Finance Corp 156
10,700 Geotek Communications, Inc.* 4
2,508 Horizon Group, Inc. 28
3,200 Hospital Properties Trust 100
4,400 IRT Property Co. 50
700 John Nuveen and Company, Inc. 26
3,800 Koger Equity, Inc. 67
3,800 LTC Properties, Inc. 76
2,159 MAF Bancorp, Inc. 82
4,300 Meridian Industrial Trust, Inc. 100
5,600 Merry Land & Investment Co., Inc. 124
2,000 MGI Properties, Inc. 49
</TABLE>
See accompanying notes to financial statements.
60
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------------
<C> <S> <C>
1,136 Mid Atlantic Medical Services, Inc.* $ 39
800 PEC Israel Economic Corp.* 18
1,404 Peoples First Corp. 48
4,300 Reckson Associates Realty Corp. 107
2,000 Redwood Trust, Inc. 47
1,900 Seacor Holdings, Inc.* 111
4,000 Smith, (Charles E.) Residential Realty, Inc. 130
1,700 Trans Financial Bancorp, Inc. 91
--------
2,021
--------
NATURAL GAS TRANSMISSION--1.1%
4,150 Atmos Energy Corp. 128
1,900 Bay State Gas Co. 72
1,300 Colonial Gas Co. 37
1,500 Connecticut Energy Corp. 44
1,200 CTG Resources, Inc. 28
2,700 Eastern Enterprises 108
3,700 Energen Corp. 75
14,200 Kelley Oil and Gas Corp.* 32
2,500 Laclede Gas Co. 62
1,600 NUI Corp. 39
3,700 Oneok, Inc. 145
4,176 Piedmont Natural Gas Co. 132
3,500 Primark Corp.* 117
2,850 Public Service Co. of North Carolina, Inc. 61
4,600 UGI Corp. 116
6,000 Washington Gas Light Co. 156
2,600 Wicor, Inc. 119
--------
1,471
--------
OIL AND GAS--2.8%
7,800 AGL Resources, Inc. 156
800 Aquila Gas Pipeline Corp. 12
1,500 Atwood Oceanics, Inc.* 78
4,340 Barrett Resources Corp.* 151
1,200 Belco Oil & Gas Corp.* 12
4,200 Benton Oil & Gas Co.* 44
2,500 Berry Petroleum Co. 36
3,800 Brown (Tom), Inc.* 64
3,200 Cabot Oil & Gas Corp. 65
2,800 Calmat Co. 70
700 Carbo Ceramics, Inc. 24
8,454 Chesapeake Energy Corp. 36
3,700 Coho Energy, Inc.* 31
3,500 Comstock Resources, Inc.* 35
4,900 Cross Timbers Oil Co. 85
3,100 Devon Energy Corp. 114
2,000 Forcenergy, Inc.* 37
4,000 Forest Oil Corp.* 58
10,200 Grey Wolf, Inc.* 40
15,500 Harken Energy Corp.* 83
1,200 Houston Exploration Company* 25
2,200 HS Resources, Inc.* 32
3,300 Indiana Energy, Inc. 102
5,600 Input/ Output, Inc.* 123
3,600 KCS Energy, Inc. 43
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
<C> <S> <C>
2,600 Key Energy Group, Inc.* $ 43
4,776 Meridian Resource Corp.* 34
7,000 National-Oilwell, Inc.* 245
2,600 New Jersey Resources 93
1,450 North Carolina Natural Gas 34
3,300 Northwest Natural Gas Co. 91
2,900 Nuevo Energy Co.* 94
4,714 Ocean Energy, Inc.* 95
3,300 Oceaneering International, Inc.* 71
9,800 Parker Drilling Co.* 83
3,200 Patterson Energy, Inc.* 36
1,400 Pennsylvania Enterprises, Inc. 36
2,400 Plains Resources, Inc.* 46
2,800 Pool Energy Services Co.* 57
6,300 Pride International, Inc.* 141
5,100 Quaker State Corp. 86
900 Rutherford-Moran Oil Corp.* 18
1,987 Semco Energy, Inc. 34
4,300 Snyder Oil Corp. 83
1,120 South Jersey Industries 31
1,279 Southern Union Company* 34
3,900 Southwest Gas Corp. 85
3,600 Southwestern Energy Company 38
1,600 St Mary Land & Exploration 44
2,320 Swift Energy Co.* 42
4,600 Titan Exploration, Inc.* 37
6,100 Tuboscope Vetco International Corp.* 138
3,700 Unit Corp.* 29
4,700 Vintage Petroleum, Inc. 85
3,000 Western Gas Resources, Inc. 49
--------
3,588
--------
ORDNANCE AND ACCESSORIES--0.0%
2,800 Sturm Ruger & Co., Inc. 52
--------
OTHER SERVICES--1.9%
1,100 Abacus Direct Corp.* 55
3,300 ADR Information Services, Inc.* 85
7,850 Acnielsen Corp.* 203
800 Administaff, Inc.* 33
2,400 Apac Teleservices, Inc.* 22
1,200 Applied Analytical Industries, Inc.* 12
2,700 Budget Group, Inc., Class A* 80
1,500 Caribiner Intl., Inc.* 33
1,100 Central Parking Corp. 49
300 Christiana Companies* 12
900 CKS Group, Inc.* 18
1,800 Coinmach Laundry Corp.* 44
1,400 Computer Learning Centers* 24
4,507 Concentra Managed Care, Inc.* 105
1,300 Education Management Corp.* 46
900 Firearms Training Systems* 4
4,000 FPA Medical Management, Inc.* 18
3,600 Franklin Covey Co.* 72
2,350 Kelly Services, Inc., Class A 86
1,700 Layne Christensen Co. 24
</TABLE>
See accompanying notes to financial statements.
61
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
OTHER SERVICES--Continued
1,500 McGrath Rentcorp $ 31
10,600 Medaphis Corp.* 80
1,600 Medquist, Inc.* 70
1,500 Memberworks, Inc.* 41
1,200 Metzler Group, Inc.* 34
2,100 Moneygram Payment Systems, Inc.* 35
1,000 National Processing, Inc.* 10
850 NCO Group, Inc.* 19
6,900 Ogden Corp. 197
1,300 Pixar, Inc.* 56
1,200 Profit Recovery Group International* 29
1,400 Rental Service Corp.* 36
2,900 Rollins, Inc. 60
24 Score Board, Inc. 0
1,500 Service Experts, Inc.* 47
1,100 Sovran Self Storage, Inc. 30
2,100 Staffmark, Inc.* 77
850 Strayer Education, Inc. 30
600 Superior Consultant Holdings* 25
2,900 Trico Marine Services, Inc.* 57
5,800 Trigon Healthcare, Inc.* 197
1,400 U S Rentals, Inc.* 45
600 Vincam Group, Inc.* 12
1,400 Wackenhut Corrections Corp* 34
5,100 Walter Industries, Inc.* 98
1,300 Whittman-Hart, Inc.* 53
--------
2,428
--------
PAPER PRODUCTS--0.7%
2,700 Chesapeake Corp. 96
1,700 Deltic Timber Corp. 47
7,400 Gaylord Container Corp.* 62
2,000 Greif Bros. Corp. 73
10,227 Paragon Tarade Brands, Inc.* 157
5,932 Paxar Corp.* 73
4,970 Rock-Tenn Co. 73
2,300 Schweitzer-Mauduit International, Inc. 76
3,150 Shorewood Packaging Corp.* 44
1,700 Universal Forest Products, Inc. 29
6,391 Wausau Paper Mills Co. 137
--------
867
--------
PERSONAL SERVICES--0.5%
5,950 Bristol Hotel Co.* 158
2,600 Catalina Marketing Corp.* 118
2,000 CPI Corp. 51
1,300 Equity Corp. International* 31
2,650 G & K Services, Inc. 103
3,700 Glatfelter (P.H) Co. 60
2,659 Marcus Corp. 47
4,000 Red Roof Inns, Inc.* 71
1,300 Unifirst Corp. 33
--------
672
--------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
<C> <S> <C>
PETROLEUM PRODUCTS--0.4%
3,000 Lomak Petroleum, Inc. $ 36
2,756 Louis Dreyfus Natural Gas Corp.* 48
4,500 Newfield Exploration, Inc.* 101
8,760 Newpark Resources, Inc.* 159
1,700 RPC, Inc.* 22
3,200 Seitel, Inc.* 54
1,600 Stone Energy Corp.* 57
3,900 Tesoro Petroleum Corp.* 75
--------
552
--------
PRINTING AND PUBLISHING--1.1%
1,750 American Business Products, Inc. 39
6,100 American Media, Inc., Class A* 39
2,400 Big Flower Press Holdings, Inc.* 74
800 CSS Industries, Inc.* 26
900 Devon Group, Inc.* 52
1,300 Express Scripts, Inc.* 100
2,400 Gibson Greetings, Inc.* 57
3,900 Golden Books Family Entertainment, Inc.* 31
4,500 Harland (John H.) Co. 81
4,200 Houghton Mifflin Co. 144
2,900 Marvel Entertainment Group* 1
2,275 McClatchy Newspapers, Inc., Class A 68
1,908 Merrill Corp. 43
1,550 Nelson (Thomas), Inc. 20
1,700 New England Business Service, Inc. 55
2,500 Playboy Enterprises, Inc.* 45
1,466 Pulitzer Publishing Co. 130
1,900 Scholastic Corp.* 76
1,900 Standard Register Co. 69
6,700 Topps, Inc.* 28
400 Waverly, Inc. 16
1,900 Wiley (John) & Sons, Inc. 103
5,200 World Color Press, Inc.* 154
--------
1,451
--------
PROFESSIONAL SERVICES--6.0%
2,320 ABM Industries, Inc. 64
6,000 Acclaim Entertainment, Inc.* 39
2,000 Activision, Inc.* 20
4,900 Acxiom Corp.* 106
500 Advent Software, Inc.* 18
3,225 Advo, Inc. 81
5,200 Affiliated Computer Services, Inc.* 173
2,000 Alternative Resources Corp.* 41
1,800 AMERCO* 59
4,400 American Oncology Resources, Inc.* 56
3,211 Analysts International Corp. 94
1,600 Arbor Software Corp.* 55
3,000 Aspen Technologies, Inc.* 134
4,100 Banta Corp. 130
1,600 Barra, Inc.* 33
3,200 BE Aerospace, Inc.* 92
2,000 Bell & Howell Co.* 54
4,600 Billing Information Concepts* 107
</TABLE>
See accompanying notes to financial statements.
62
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------------
<C> <S> <C>
3,600 Bisys Group, Inc.* $ 134
1,600 BRC Holdings, Inc.* 30
3,000 Broderbund Software, Inc.* 48
1,400 CDI Corp.* 52
2,900 Ciber, Inc.* 93
5,250 Citrix Systems, Inc.* 274
3,100 Clarify, Inc.* 38
1,900 ClinTrials Research, Inc.* 10
3,700 Computer Horizons Corp.* 124
2,500 Computer Task Group, Inc. 79
3,500 CSG Systems International, Inc.* 150
1,500 Documentum, Inc.* 71
3,700 Employee Solutions, Inc.* 15
1,400 Fair Isaac & Co. 51
2,800 Gerber Scientific, Inc. 71
7,200 Global Industries Ltd.* 153
100 Grey Advertising, Inc. 45
2,400 HA-LO Industries, Inc.* 74
3,975 Harbinger Corp.* 93
1,700 HCIA, Inc.* 14
1,750 Henry (Jack) & Associates, Inc. 57
2,500 HNC Software, Inc.* 86
778 Holly Corp. 21
1,200 IKOS Systems, Inc.* 7
2,000 Inacom Corp.* 65
3,200 Infocus Systems* 25
1,400 Inso Corp.* 19
2,300 Integrated Systems Consulting Group, Inc.* 43
5,500 Interim Services, Inc.* 160
3,200 Intersolv, Inc.* 46
400 Intevac, Inc.* 4
1,100 Iron Mountain, Inc.* 46
650 ITT Educational Services, Inc.* 19
1,300 JDA Software Group, Inc.* 59
1,600 Landstar Systems, Inc.* 54
1,400 Learning Tree International, Inc.* 22
4,700 Legato Systems, Inc.* 135
2,300 Manugistics Group, Inc.* 65
1,900 May & Speh, Inc.* 32
3,900 Metamor Worldwide, Inc. 117
3,950 MDU Resources Group, Inc. 132
3,200 National Health Investors, Inc. 113
1,950 National Instruments Corp.* 65
3,100 Network Equipment Technologies, Inc.* 49
1,550 Nichols Research Corp.* 37
2,100 Nimbus CD International, Inc.* 23
2,000 Norrell Corp. 45
5,400 Oak Technology, Inc.* 30
1,500 On Assignment, Inc.* 51
4,700 Orthodontic Centers of America, Inc.* 100
3,500 Personnel Group of America, Inc.* 71
2,700 PhyMatrix Corp.* 25
5,000 Physician Computer Network, Inc. 8
3,400 Physician Reliance Network, Inc. 38
4,300 Physician Resource Group, Inc.* 22
1,050 Pinkertons, Inc.* 22
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
<C> <S> <C>
2,100 Policy Management Systems Corp.* $ 173
3,100 Pre-Paid Legal Services, Inc.* 110
3,100 Premiere Technologies, Inc.* 74
1,600 Progress Software Corp.* 52
1,400 Project Software & Development, Inc.* 32
2,200 Protein Design Labs, Inc.* 55
5,100 PSINET, Inc.* 55
3,000 Remedy Corp.* 48
4,813 Romac International, Inc.* 136
1,000 Sapient Corp.* 45
6,800 Sitel Corp.* 43
5,700 Sotheby's Holdings, Inc., Class A 131
900 SPSS, Inc.* 20
4,700 Structural Dynamics Research Corp.* 119
4,750 System Software Associates, Inc.* 35
4,600 Systems & Computer Technology Corp.* 118
3,000 Systemsoft Corp.* 6
2,300 Telxon Corp. 76
650 Thermo Ecotek Corporation* 10
565 Thermo TerraTech, Inc.* 3
1,350 Thermotrex Corp.* 27
6,200 Vanstar Corp.* 90
1,400 Vantive Corp.* 38
3,100 Veritas DGC, Inc.* 161
5,513 Veritas Software Corp.* 222
2,800 Viasoft, Inc.* 43
1,900 VideoServer, Inc.* 16
3,200 Visio Corp.* 150
1,500 VISX Corp.* 74
1,200 Volt Information Sciences, Inc.* 37
1,897 Wackenhut Corp. 42
2,925 Wind River Systems* 97
3,300 Xircom, Inc.* 52
3,300 Yahoo!, Inc.* 361
1,400 Zoran Corp.* 16
--------
7,655
--------
REAL ESTATE--6.6%
1,100 Alexandria Real Estate 35
3,100 Amercian General Hospitality Corporation 74
3,100 American Health Properties, Inc. 86
1,612 American Homestar Corp.* 34
2,000 AMLI Residential Properties 45
6,341 Apartment Investment & Management Co. 247
5,100 Arden Realty Group, Inc. 140
1,800 Associated Estates Realty Corp. 34
5,400 Avalon Properties, Inc. 152
1,000 Avatar Holdings, Inc.* 27
3,400 Bay Apartment Communities, Inc. 125
3,100 Bedford Property Investors 60
5,100 Berkshire Realty, Inc. 62
1,300 Boykin Lodging Company 28
3,303 Bradley Real Estate Trust 69
5,933 Camden Property Trust 181
2,500 Capstone Capital Corp. 58
</TABLE>
See accompanying notes to financial statements.
63
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
REAL ESTATE--Continued
2,200 Castle & Cooke, Inc.* $ 42
2,200 CB Commercial Real Estate Services* 74
3,200 CBL & Associates Properties, Inc. 79
2,400 Centerpoint Properties Corp. 81
3,700 Chateau Communities, Inc. 110
2,100 Chelsea GCA Realty, Inc. 84
6,600 Choice Hotels Intl., Inc.* 99
3,100 Colonial Property Trust 94
4,100 Commercial Net Lease Realty 66
12,400 Cornerstone Properties, Inc. 217
5,100 Cornerstone Realty Income Trust 60
3,400 Cousins Properties, Inc. 104
3,800 Crown American Realty Trust 38
3,300 Developers Diversified Realty Corp. 129
6,600 Dynex Capital, Inc. 79
2,300 Eastgroup Properties 46
5,100 Equity Inns, Inc. 73
2,000 Essex Property Trust, Inc. 65
3,300 Excel Legacy Corp.* 17
3,200 Excel Realty Trust, Inc. 87
5,400 Federal Realty Investment Trust 134
4,400 FelCor Suite Hotel, Inc. 152
5,000 First Industrial Realty Trust 155
4,300 First Union Real Estate 47
900 Forest City Enterprises, Inc. 51
3,200 Gables Residential Trust 89
4,800 General Growth Properties, Inc. 178
1,162 Getty Realty Corp. 25
4,300 Glenborough Realty Trust, Inc. 121
3,400 Glimcher Realty Trust 71
2,000 Great Lakes REIT, Inc. 37
2,800 Grubb & Ellis Co.* 34
4,200 Health Care Property Investors, Inc. 148
3,500 Health Care REIT, Inc. 90
2,400 Healthcare Realty Trust 68
6,600 Highwoods Properties, Inc. 218
1,300 Home Properties of New York, Inc. 35
1,700 Impac Mortgage Holdings, Inc. 27
7,000 Indymac Mortgage Holdings, Inc. 166
3,800 Innkeepers USA Trust 53
2,600 Irvine Apartment Communities, Inc. 78
2,800 JDN Realty Co. 91
2,200 JP Realty, Inc. 50
3,100 Kilroy Realty Corp. 81
7,300 Liberty Property Trust 193
3,800 LNR Property, Inc. 98
3,500 Macerich Co. 95
6,800 Mack-Cali Realty Corp. 245
3,300 Manufactured Home Communities, Inc. 82
700 Maxxam, Inc.* 41
7,000 Mid-America Apartment Communities, Inc. 91
3,300 Mills Corp. 81
1,800 National Golf Properties, Inc. 54
5,900 Nationwide Health Properties, Inc. 142
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------------
<C> <S> <C>
2,800 Ocwen Asset Investment Corp. $ 48
2,200 Pacific Gulf Properties, Inc. 48
1,100 Pennsylvania Real Estate Investmentt Trust 26
4,468 Post Properties, Inc. 184
4,000 Prentiss Properties Trust 102
1,900 PRI Automation, Inc.* 39
1,800 Price Enterprises, Inc. 32
1,700 Price REIT, Inc. 81
3,900 Prime Retail, Inc. 51
3,800 Realty Income Corporation 101
3,500 Regency Realty Corp. 86
2,900 RFS Hotel Investors, Inc. 58
1,400 Saul Centers, Inc. 24
3,900 Shurguard Storage Centers, Inc. 112
2,100 Storage Trust Realty 51
3,800 Storage USA, Inc. 141
3,100 Summit Property, Inc. 62
2,400 Sun Communities, Inc. 81
5,400 Sunstone Hotel Investors, Inc. 78
1,000 Tanger Factory Outlet Center 31
5,000 Taubman Centers, Inc. 68
2,800 Thornburg Mortgage Asset Corp. 39
2,300 Town & Country Trust 38
2,900 Trinet Corporate Realty Trust 101
2,500 Urban Shopping Centers, Inc. 83
2,200 Walden Residential Properties, Inc. 53
5,100 Washington Real Estate Investment Trust 90
2,500 Weeks Corp. 80
2,500 Western Investment Real Estate Trust 34
2,300 Winston Hotels, Inc. 28
--------
8,472
--------
RECREATIONAL AND LEISURE SERVICES--1.8%
600 AMC Entertainment, Inc.* 11
900 Anchor Gaming* 82
4,300 Ascent Entertainment Group, Inc.* 55
2,700 Authentic Fitness Corp. 49
6,500 Aztar Corp.* 46
5,100 Boyd Gaming Corp.* 34
3,400 Capstar Hotel Company* 99
1,300 Carmike Cinemas, Inc.* 34
1,300 Coleman Co., Inc.* 25
500 Dover Downs Entertainment 15
2,500 Enesco Group Inc. 76
1,950 Family Golf Centers, Inc.* 51
5,000 Florida Panthers Holdings, Inc.* 97
2,600 Galoob (Lewis) Toys, Inc.* 29
800 GC Cos., Inc.* 40
4,700 Grand Casinos* 83
2,800 Hollywood Park, Inc.* 36
2,100 Homestead Village, Inc.* 32
3,400 Interstate Hotels Company* 110
2,017 K2, Inc. 40
2,300 Lydall, Inc.* 40
7,000 Malibu Entertainment Worldwide* 18
</TABLE>
See accompanying notes to financial statements.
64
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------------------
<C> <S> <C>
1,700 North Face, Inc.* $ 42
2,700 Panavision, Inc.* 71
1,000 Penn National Gaming, Inc.* 9
800 Penske Motorsports, Inc.* 26
1,700 Premier Parks, Inc.* 90
1,100 Primadonna Resorts, Inc.* 19
5,600 Prime Hospitality Corp.* 100
700 Quintel Entertainment, Inc.* 4
2,400 Rio Hotel & Casino, Inc.* 52
3,200 Sabre Group Holdings, Inc.* 112
1,300 Scientific Games Holdings Corp.* 27
1,100 SFX Entertainment, Inc.* 49
2,400 Showboat, Inc. 74
2,300 Signature Resorts, Inc.* 36
1,200 Skyline Corp. 35
1,500 Sodak Gaming, Inc.* 9
1,800 Speedway Motorsports, Inc.* 47
3,100 Spelling Entertainment Group, Inc.* 29
3,000 Station Casinos, Inc.* 45
1,500 Suburban Lodges of America* 24
2,333 Sunburst Hospitality Corp.* 16
1,500 Ticketmaster Group, Inc.* 41
3,200 Trump Hotels and Casino Resorts, Inc.* 27
5,600 United States Satellite Broadcasting Comp. Inc.* 54
3,800 Vail Resorts, Inc.* 110
900 Vistana, Inc.* 19
1,200 West Marine, Inc.* 23
600 White River Corp.* 54
2,900 WMS Industries, Inc.* 13
--------
2,359
--------
RESEARCH AND CONSULTING SERVICES--1.0%
4,900 Advance Tissue Science, Inc.* 45
4,200 Agouron Pharmaceuticals, Inc.* 143
6,800 Bio-Technology General Corp.* 58
4,100 Columbia Laboratories, Inc.* 35
275 Computer Management Sciences, Inc.* 7
6,500 Cytogen Corp.* 7
1,800 Dames & Moore, Inc. 23
700 Data Processing Resources Corp.* 20
3,100 Jacobs Engineering Group, Inc.* 100
5,400 Liposome Technology, Inc.* 33
2,400 Mycogen Corp.* 57
2,100 NeoPath, Inc.* 27
2,950 NFO Research, Inc.* 50
1,900 OHM Corp.* 26
3,956 Organogenesis, Inc.* 100
3,000 Parexel International Corp.* 90
2,445 Pharmaceutical Product Development, Inc.* 52
2,160 Renaissance Worldwide, Inc.* 41
5,400 Scios-Nova, Inc.* 51
1,400 Spacelabs Medical, Inc.* 23
1,000 Stone & Webster, Inc. 41
4,550 Summit Technology, Inc.* 24
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
<C> <S> <C>
7,700 Symantec Corp.* $ 184
3,500 U. S. Bioscience, Inc.* 33
--------
1,270
--------
RETAIL--5.3%
775 99 Cents Only Stores* 30
2,200 Aaron Rents, Inc. 43
1,000 Abercrombie & Fitch Co., Class A* 42
370 Alexander's, Inc.* 33
800 Amazon Com., Inc.* 70
4,100 Americredit Corp.* 134
3,200 Ames Department Stores, Inc.* 79
3,700 AnnTaylor Stores, Inc.* 81
4,312 Apple South, Inc. 57
9,400 Best Buy, Inc.* 307
5,100 BJ'S Wholesale Club, Inc. 201
8,950 Brinker International, Inc.* 195
800 Brylane, Inc.* 38
600 Buckle, Inc.* 31
6,540 Buffets, Inc.* 107
2,880 Burlington Coat Factory Warehouse* 58
3,500 Cash America International, Inc. 59
15,300 Charming Shoppes, Inc.* 77
2,200 Circuit City Stores, Inc.* 21
6,310 CKE Restaurants, Inc. 200
6,250 Claire's Stores, Inc. 117
2,100 Cole National Corp.* 81
3,028 Consolidated Products, Inc.* 60
1,300 Cost Plus, Inc. of California* 38
700 Cross-Continent Auto Retailer* 6
400 Delia's, Inc.* 9
2,400 Dress Barn, Inc* 69
1,900 Einstein/Noah Bagel Corp.* 9
2,400 Fabri-Centers of America, Inc., Class A* 71
5,000 Fedders Corp. 31
6,300 Fingerhut Cos., Inc. 185
5,600 Foodmaker, Inc.* 94
3,900 Footstar, Inc.* 172
1,500 Friedmans, Inc., Class A* 29
2,600 Garden Ridge Corp.* 45
1,340 Genovese Drug Stores, Class A 27
2,200 Global Directmail Corp.* 45
900 Goody's Family Clothing, Inc.* 43
2,200 Guitar Center, Inc.* 58
3,500 Gymboree Corp.* 55
3,000 Hancock Fabrics, Inc. 40
4,200 Hollywood Entertainment Corp.* 44
4,800 Homebase, Inc.* 42
1,000 Ingles Markets, Inc. 12
3,250 Just For Feet, Inc.* 71
2,100 Lands' End, Inc.* 68
3,600 Linens 'N Things, Inc.* 116
4,100 Longs Drug Stores, Inc. 124
1,975 Men's (The) Warehouse, Inc.* 84
3,300 Michael's Stores, Inc.* 99
</TABLE>
See accompanying notes to financial statements.
65
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
RETAIL--Continued
5,000 Micro Warehouse, Inc.* $ 87
3,200 National Media Corp.* 4
2,123 Natures Sunshine Products, Inc. 49
1,300 NPC International, Inc.* 16
1,700 Nu Skin Asia Pacific, Class A* 44
1,800 O'Reilly Automotive, Inc.* 58
1,950 Pacific Sunwear California* 87
1,600 Paul Harris Stores* 20
2,950 Petco Animal Supplies, Inc.* 57
9,252 Pier I Imports, Inc. 222
10,425 Proffitt's, Inc.* 409
2,300 Regis Corp. 64
2,200 Renters Choice, Inc.* 58
14,500 Service Merchandise Co., Inc.* 31
2,000 Shopko Stores, Inc.* 70
2,150 Showbiz Pizza Time, Inc.* 76
2,550 Sonic Corp.* 53
2,300 Spiegel, Inc., Class A* 12
4,500 Sports Authority, Inc.* 68
3,600 Stage Stores, Inc.* 168
2,500 Stein Mart, Inc.* 39
6,800 Stride Rite Corp. 90
7,900 Sunglass Hut International* 96
1,000 Syms Corp.* 15
1,700 Talbots, Inc. 48
2,300 The Finish Line, Class A* 54
18,083 U S Office Products Co.* 306
1,200 Ugly Duckling Corp.* 10
2,100 United Auto Group, Inc.* 43
1,400 Urban Outfitters, Inc.* 23
2,900 Valmont Industries, Inc. 58
1,400 Value City Department Stores, Inc.* 25
1,600 Wet Seal, Inc.* 48
3,500 Whole Foods Market, Inc.* 192
5,400 Williams-Sonoma, Inc.* 149
1,600 Wilmar Industries, Inc.* 39
4,800 Zale Corp.* 148
--------
6,843
--------
RUBBER AND PLASTICS--0.6%
1,900 ACX Technologies, Inc.* 43
3,600 Carlisle Cos., Inc. 174
2,000 Foamex International, Inc. 31
2,600 Furon Co. 41
600 Liqui-Box Corp. 25
1,994 Myers Industries, Inc. 42
2,100 O'Sullivan Corp.* 31
1,100 Rogers Corp.* 42
3,300 Sola International, Inc.* 130
1,800 Spartech Corp. 40
1,100 Tredegar Industries, Inc. 95
1,900 West Co., Inc. 56
--------
750
--------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------
<C> <S> <C>
SANITARY SERVICES--0.5%
13,700 Allied Waste Industries, Inc.* $ 363
2,200 Centennial Cellular Corp.* 77
34,720 Laidlaw Environment Services, Inc.* 134
2,900 Superior Services, Inc.* 89
--------
663
--------
SERVICE INDUSTRY MACHINERY--0.2%
3,400 Applied Power, Inc. 116
1,500 Scotsman Industries, Inc. 43
1,200 Tennant Co. 51
2,743 Wynn's International, Inc. 57
--------
267
--------
SOCIAL SERVICES--0.2%
347 Berlitz International, Inc.* 9
3,700 DeVry, Inc.* 147
2,818 Omega Healthcare Investors, Inc. 97
--------
253
--------
STEEL PRODUCTS--1.2%
1,700 Acme Metals, Inc.* 13
6,900 AK Steel Holdings, Inc. 128
1,300 Amcast Industrial Corp. 28
13,700 Armco, Inc.* 74
4,300 Birmingham Steel Corp. 60
2,200 Brush Wellman, Inc. 53
2,900 Carpenter Technology Corp. 154
700 Curtiss Wright Corp. 29
500 Gibraltar Steel Corp.* 11
2,000 IMCO Recycling, Inc. 38
2,700 Intermet Corp. 52
2,600 J & L Specialty Steel, Inc. 18
3,400 Kaiser Aluminum Corp.* 35
3,200 Lone Star Technologies, Inc.* 61
2,200 Lukens, Inc. 70
4,800 Mueller Industries, Inc.* 149
3,100 National Steel Corp., Class B 49
3,200 Oregon Steel Mills, Inc. 77
1,550 Reliance Steel & Aluminum Co. 59
1,000 Rouge Industries, Inc., Class A 12
700 Shiloh Industries, Inc.* 15
1,700 Standex International Corp. 51
5,000 Steel Dynamics, Inc.* 97
2,900 Texas Industries, Inc. 172
3,200 Transmontaigne Oil Co.* 52
--------
1,557
--------
TEXTILES--0.6%
2,600 Albany International Corp. 75
7,800 Burlington Industries, Inc.* 137
3,500 Cone Mills Corp.* 33
1,100 Culp, Inc. 19
600 Fab Industries, Inc. 16
1,700 Galey & Lord, Inc.* 42
3,197 Guilford Mills, Inc. 86
</TABLE>
See accompanying notes to financial statements.
66
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
<C> <S> <C>
3,000 Interface, Inc. $ 117
3,500 Phillips-Van Heusen 45
700 Pillowtex Corp. 33
2,000 Quiksilver, Inc.* 38
4,100 Ruddick Corp. 73
1,800 Springs Industries, Inc. 101
--------
815
--------
TRANSPORTATION PARTS AND EQUIPMENT--1.9%
3,600 AAR Corp. 95
1,300 Alliant Techsystems, Inc.* 84
3,050 Arctic Cat, Inc. 28
3,000 Arvin Industries, Inc. 111
2,300 Aviall, Inc.* 34
1,200 Banner Aerospace, Inc.* 14
1,800 Borg Warner Automotive, Inc.* 40
2,000 Breed Technologies, Inc. 38
2,200 Coachmen Industries, Inc. 52
8,700 Collins & Aikman Corp.* 61
1,100 Copart, Inc.* 20
1,200 Detroit Diesel Corp.* 29
900 Ducommun, Inc.* 29
2,200 Eaton Vance Corp. 99
2,400 Exide Corp. 43
2,100 Fairchild Corp.* 41
5,500 Federal-Mogul Corp. 325
4,500 Gencorp, Inc. 134
1,800 Huffy Corp. 27
2,400 OEA, Inc. 41
4,500 Orbital Sciences Corp.* 184
3,600 Polaris Industries, Inc. 126
2,400 Remec, Inc.* 34
3,300 Rohr, Inc. 14
7,600 Rollins Truck Leasing Corp. 91
1,200 Sequa Corp.* 83
2,300 Simpson Industries, Inc. 32
1,600 Smith (A.O.) Corp. 81
2,425 Standard Products Co. 71
4,500 Stewart & Stevenson Services, Inc. 93
2,900 Superior Industries International, Inc. 84
883 Thor Industries, Inc. 24
2,200 Tower Automotive, Inc.* 103
2,900 Wabash National Corp. 75
1,200 Walbro Corp.* 12
2,000 Winnebago Industries, Inc. 22
--------
2,474
--------
TRANSPORTATION SERVICES--2.1%
4,250 Air Express International Corp. 110
6,800 Airborne Freight Corp. 253
1,200 Airnet Systems, Inc.* 28
5,800 Airtran Holdings, Inc.* 42
2,500 Alaska Air Group, Inc.* 116
3,000 American Freightways, Inc.* 34
5,430 American West Holdings Corp.* 154
2,900 Arnold Industries, Inc. 45
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------------
<C> <S> <C>
3,100 Asa Holdings, Inc. $ 122
1,200 Atlas Air, Inc.* 42
1,800 Circle International Corp., Inc. 49
2,500 Coach USA, Inc.* 107
3,200 Consolidated Freightways Corp.* 47
1,500 Covenant Transportation, Inc., Class A* 24
1,100 Eagle USA Airfreight, Inc.* 36
3,300 Expeditors International of Washington, Inc. 132
400 Florida East Coast Industries 50
3,100 Fritz Companies, Inc.* 40
6,700 Greyhound Lines, Inc.* 42
2,239 Heartland Express, Inc.* 49
3,100 Hunt (J.B.) Transportation Services, Inc. 93
1,700 Hvide Marine, Inc., Class A* 26
3,700 Kirby Corp.* 79
500 Kitty Hawk, Inc.* 9
900 Knight Transportation, Inc.* 17
1,300 M.S. Carriers, Inc.* 39
1,650 Mesaba Holdings, Inc.* 36
2,025 Midwest Express Holdings, Inc.* 58
2,600 Motivepower Industries, Inc.* 72
3,100 Offshore Logistics, Inc.* 63
5,600 OMI Corp.* 51
3,900 Overseas Shipholding Group, Inc. 75
2,900 Pittston Burlington Group 51
1,800 Roadway Express, Inc. 34
2,850 Swift Transportation Co., Inc.* 63
7,300 Trans World Airlines, Inc.* 76
3,550 US Freightways Corporation 112
3,812 Werner Enterprises, Inc. 72
2,100 Xtra Corp. 110
3,800 Yellow Corp.* 71
--------
2,729
--------
WATER SUPPLY--0.4%
1,100 Aquarion Co. 37
3,425 Culligan Water Technologies, Inc.* 191
4,700 E'Town Corp. 102
3,333 Philadelphia Suburban Corp. 66
1,260 Southern California Water Co. 27
3,852 United Water Resources, Inc. 62
--------
485
--------
WHOLESALE--1.1%
1,000 Aviation Sales Company* 38
1,600 Bindley Western Industries, Inc. 57
3,400 Caraustar Industries, Inc. 104
7,200 Casey's General Stores, Inc. 102
1,656 Castle (A. M.) & Co. 37
1,000 CDW Computer Centers, Inc.* 41
4,300 CHS Electronics, Inc.* 85
3,200 Compucom Systems, Inc.* 23
1,400 Daisytek International Corp.* 35
1,200 Discount Auto Parts, Inc.* 31
4,600 Handleman Co. 56
1,900 Hughes Supply, Inc. 64
</TABLE>
See accompanying notes to financial statements.
67
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1998
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
WHOLESALE--Continued
2,800 Kaman Corp. $ 51
3,900 Kent Electronics Corp.* 82
900 Lawson Products, Inc. 24
2,400 Marshall Industries* 74
2,450 Microage, Inc.* 33
1,600 Nash-Finch Co. 27
3,600 Owens & Minor, Inc. Holdings Co. 43
2,950 Patterson Dental Co.* 96
1,500 Russ Berrie & Co., Inc. 38
1,500 Smart & Final, Inc. 28
2,200 United Stationers, Inc.* 131
2,100 VWR Corp.* 60
--------
1,360
- ---------------------------------------------------------------
TOTAL COMMON STOCKS (Cost $100,810) $125,290
- ---------------------------------------------------------------
RIGHTS--0.0%
76 Alpha 1 Biomedicals, Inc. Rights* $ 0
1,650 Metrocall, Inc. Variable Rights* 0
213 Omega Worldwide Rights* 0
- ---------------------------------------------------------------
TOTAL RIGHTS (Cost $0) $ 0
- ---------------------------------------------------------------
WARRANTS--0.0%
248 Coram Healthcare Corp., Exp. 7/11/99* $ 0
1,366 IMC Global, Inc., Exp. 01/10/00* 5
350 Milicom American Satellite Corp.,
Exp. 06/30/99* 0
213 NTN Communications, Inc., Exp. 07/11/98* 0
57 Perkin Elmer Corp., Class G, Exp. 02/18/01* 0
- ---------------------------------------------------------------
TOTAL WARRANTS (Cost $5) $ 5
- ---------------------------------------------------------------
OTHER INVESTMENTS--0.0%
2,000 Escrow CFS Group, Inc.* $ 0
1,400 Escrow Millicom, Inc.* 0
900 Escrow Northeast Bancorp, Inc.* 0
2,790 Escrow Statesman Group, Inc.* 0
1,420 Escrow Strawbridge & Clothier* 0
1,700 Escrow Takecare, Inc.* 0
1,000 Escrow WCI Steel, Inc.* 0
- ---------------------------------------------------------------
TOTAL OTHER INVESTMENTS (Cost $0) $ 0
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Description Value
- ---------------------------------------------------------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATION--0.0%
U.S. Treasury Bill #
$ 74 4.82% Due 06/25/98 $ 74
- ---------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATION
(Cost $74) $ 74
- ---------------------------------------------------------
SHORT-TERM INVESTMENT--2.2%
Marshall & Isley Bank, Grand Cayman
$ 2,775 5.688%Due 06/01/98 $ 2,775
- ---------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT (Cost $2,775) $ 2,775
- ---------------------------------------------------------
TOTAL INVESTMENTS--99.7%
(Cost $103,664) $128,144
- ---------------------------------------------------------
Other assets, less liabilities--0.3% 377
- ---------------------------------------------------------
NET ASSETS--100.0% $128,521
- ---------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C>
OPEN FUTURES CONTRACTS:
<CAPTION>
Number of Contract Contract Contract Unrealized
Type Contracts Amount Position Expiration Loss
- ---------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
RUSSELL 2000 10 $2,282 Long 06/19/98 $(111)
- ---------------------------------------------------------------
</TABLE>
*Non-income producing security.
#Securities pledged to cover margin requirements for open futures contracts.
See accompanying notes to financial statements.
68
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
69
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
May 31, 1998
(All amounts in thousands, except net asset value per share)
(Unaudited)
<TABLE>
<CAPTION>
Small
Diversified Equity Focused International International Company
Balanced Growth Index Growth Equity Index Growth Index
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in
securities, at cost $43,937 $101,684 $ 779,318 $ 97,762 $43,978 $ 94,655 $103,664
- -----------------------------------------------------------------------------------------------------------
Investments in
securities, at value $55,208 $165,471 $1,224,617 $128,384 $47,879 $113,286 $128,144
Cash and foreign
currencies 12 -- 1 1 369 -- 1
Receivables:
Dividends and interest 348 151 1,937 89 129 137 94
Foreign tax reclaims -- -- -- -- 43 225 --
Fund shares sold 218 13 1,225 22 -- 3 323
Investment securities
sold 298 715 -- 1,084 -- 3,764 --
Administrator -- 7 8 6 34 -- --
Deferred organization
costs, net 1 -- -- 1 14 12 --
Other assets 16 9 16 8 17 1 35
- -----------------------------------------------------------------------------------------------------------
TOTAL ASSETS 56,101 166,366 1,227,804 129,595 48,485 117,428 128,597
- -----------------------------------------------------------------------------------------------------------
LIABILITIES:
Due to Custodian -- 12 -- -- -- 360 --
Payable for:
Fund shares redeemed -- -- 953 247 5 181 9
Investment securities
purchased -- -- 201 728 -- 2,630 9
Accrued expenses:
Advisory fees 24 79 105 93 10 77 23
Administration fees 5 14 105 12 6 15 11
Custodian fees 2 2 6 1 8 15 7
Transfer agent fees 1 2 23 2 1 1 1
Other liabilities 11 16 119 15 7 20 16
- -----------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 43 125 1,512 1,098 37 3,299 76
- -----------------------------------------------------------------------------------------------------------
NET ASSETS $56,058 $166,241 $1,226,292 $128,497 $48,448 $114,129 $128,521
- -----------------------------------------------------------------------------------------------------------
ANALYSIS OF NET ASSETS:
Paid-in capital $38,772 $ 94,260 $772,382 $ 87,840 $43,160 $ 93,430 $ 91,803
Accumulated
undistributed
(distributions in
excess of)
net investment income 364 389 1,478 (10) 21 (27) 708
Accumulated net realized
gains on investments,
options, futures and
foreign currency
transactions 5,651 7,805 7,630 10,045 1,371 2,085 11,641
Net unrealized
appreciation on
investments, options,
futures and foreign
currency transactions 11,271 63,787 444,802 30,622 3,901 18,631 24,369
Net unrealized gains
(losses) on translation
of other assets and
liabilities denominated
in foreign currencies -- -- -- -- (5) 10 --
- -----------------------------------------------------------------------------------------------------------
NET ASSETS $56,058 $166,241 $1,226,292 $128,497 $48,448 $114,129 $128,521
- -----------------------------------------------------------------------------------------------------------
Total shares outstanding
(no par value),
unlimited shares
authorized
Class A 3,504 10,185 51,083 7,811 4,042 9,549 8,543
Class C 379 -- 4,813 627 -- -- 18
Class D 53 71 1,796 124 -- 33 64
- -----------------------------------------------------------------------------------------------------------
Net asset value,
offering and redemption
price per share
Class A $ 14.25 $ 16.21 $ 21.26 $ 15.01 $ 11.99 $ 11.91 $ 14.90
Class C $ 14.21 -- $ 21.21 $ 14.99 -- -- $ 14.88
Class D $ 14.18 $ 16.03 $ 21.15 $ 14.82 -- $ 11.76 $ 14.86
- -----------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
70
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the Six Months Ended May 31, 1998
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Small
Diversified Equity Focused International International Company
Balanced Growth Index Growth Equity Index Growth Index
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend $ 345 $ 832 $ 8,425 $ 592 $ 497 $ 1,119 $ 938
Interest 636 108 649 47 23 178 98
- ----------------------------------------------------------------------------------------------------------
TOTAL INCOME 981 940 9,074 639 520(a) 1,297(b) 1,036
- ----------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 232 643 1,662 721 120 538 291
Administration fees 29 80 554 66 36 81 73
Custodian fees 11 13 142 14 30 57 131
Registration fees -- 5 25 5 32 -- 13
Amortization of deferred
organization costs 6 1 1 9 1 7 1
Transfer agent fees 6 9 122 12 2 6 8
Shareholder servicing
fees 5 1 114 9 -- 1 1
Professional fees 5 9 35 4 3 2 5
Trustee fees 1 2 16 1 1 -- 1
Other 6 7 38 22 15 4 10
- ----------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 301 770 2,709 863 240 696 534
Less: Voluntary waivers
of investment advisory
fees (87) (201) (1,108) (197) (60) (108) (145)
Less: Expenses reimburs-
able by Administrator (29) (36) (244) (40) (45) (17) (159)
- ----------------------------------------------------------------------------------------------------------
Net expenses 185 533 1,357 626 135 571 230
- ----------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 796 407 7,717 13 385 726 806
Net realized gains
(losses) on:
Investment transactions 5,652 7,630 9,155 10,077 1,406 6,217 11,496
Futures transactions -- 266 1,922 40 -- -- (220)
Foreign currency trans-
actions -- -- -- -- (30) (70) --
Net change in unrealized
appreciation
(depreciation) on
investments, options,
futures, and foreign
currency transactions (796) 12,682 129,092 6,640 5,149 14,270 (1,748)
Net change in unrealized
gains (losses) on
translation of other
assets and liabilities
denominated in foreign
currencies -- -- -- -- (2) 16 --
- ----------------------------------------------------------------------------------------------------------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS $5,652 $20,985 $147,886 $16,770 $6,908 $21,159 $10,334
- ----------------------------------------------------------------------------------------------------------
</TABLE>
(a) Net of $60 in non-reclaimable foreign withholding taxes.
(b) Net of $108 in non-reclaimable foreign withholding taxes.
See accompanying notes to financial statements.
71
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended May 31, 1998 (Unaudited) and the Year Ended November
30, 1997
(All amounts in thousands)
<TABLE>
<CAPTION>
Balanced Diversified
Portfolio Growth Portfolio
----------------- ------------------
1998 1997 1998 1997
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS:
Net investment income $ 796 $ 1,606 $ 407 $ 1,090
Net realized gains (losses) on invest-
ments, options, futures and foreign
currency transactions 5,652 2,227 7,896 18,135
Net change in unrealized appreciation
(depreciation) on investments,
options, futures and foreign currency
transactions (796) 4,839 12,682 14,940
Net change in unrealized losses on
translations of other assets and lia-
bilities denominated in foreign cur-
rencies -- -- -- --
- -------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 5,652 8,672 20,985 34,165
- -------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS
FROM:
Net investment income (449) (1,436) (1,086) (1,369)
Net realized gains (1,990) (1,132) (18,075) (14,420)
- -------------------------------------------------------------------------------
Total distributions to Class A share-
holders (2,439) (2,568) (19,161) (15,789)
- -------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS C SHAREHOLDERS:
Net investment income (38) (151) -- --
Net realized gains (174) (152) -- --
- -------------------------------------------------------------------------------
Total distributions to Class C share-
holders (212) (303) -- --
- -------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS D SHAREHOLDERS:
Net investment income (5) (8) (4) (4)
Net realized gains (29) (6) (104) (45)
- -------------------------------------------------------------------------------
Total distributions to Class D share-
holders (34) (14) (108) (49)
- -------------------------------------------------------------------------------
CLASS A SHARE TRANSACTIONS:
Proceeds from the sale of shares 7,672 7,638 5,733 13,555
Reinvested distributions 2,413 2,538 18,263 14,520
Cost of shares redeemed (14,335) (9,103) (18,972) (29,982)
- -------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from Class A share transac-
tions (4,250) 1,073 5,024 (1,907)
- -------------------------------------------------------------------------------
CLASS C SHARE TRANSACTIONS:
Proceeds from the sale of shares 611 1,106 -- --
Reinvested distributions 213 303 -- --
Cost of shares redeemed (274) (3,329) -- --
- -------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from Class C share transac-
tions 550 (1,920) -- --
- -------------------------------------------------------------------------------
CLASS D SHARE TRANSACTIONS:
Proceeds from the sale of shares 588 140 415 215
Reinvested distributions 34 14 108 49
Cost of shares redeemed (215) (96) (101) (93)
- -------------------------------------------------------------------------------
Net increase in net assets resulting
from Class D share transactions 407 58 422 171
- -------------------------------------------------------------------------------
Net increase (decrease) (326) 4,998 7,162 16,591
Net assets--beginning of period 56,384 51,386 159,079 142,488
- -------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 56,058 $56,384 $166,241 $159,079
- -------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED (DISTRIBU-
TIONS IN EXCESS OF) NET INVESTMENT IN-
COME $ 364 $ 60 $ 389 $ 1,072
- -------------------------------------------------------------------------------
</TABLE>
(a) For the period April 1, 1997 (commencement of operations) through November
30, 1997.
See accompanying notes to financial statements.
72
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International
Equity Index Focused Growth Equity Index International Small Company
Portfolio Portfolio Portfolio Growth Portfolio Index Portfolio
- --------------------- ------------------ ----------------- ------------------ ------------------
1998 1997 1998 1997 1998 1997 (a) 1998 1997 1998 1997
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 7,717 $ 13,574 $ 13 $ 327 $ 385 $ 312 $ 726 $ 1,206 $ 806 $ 1,478
11,077 72,933 10,117 23,396 1,376 (3) 6,147 4,368 11,276 9,968
129,092 119,879 6,640 4,216 5,149 (1,248) 14,270 138 (1,748) 13,285
-- -- -- -- (2) (3) 16 (21) -- --
- -----------------------------------------------------------------------------------------------------
147,886 206,386 16,770 27,939 6,908 (942) 21,159 5,691 10,334 24,731
- -----------------------------------------------------------------------------------------------------
(6,036) (12,212) (321) (130) (678) -- (1,630) (1,022) (1,365) (1,364)
(64,765) (32,814) (20,346) (12,039) -- -- (5,678) (5,790) (8,892) (13,019)
- -----------------------------------------------------------------------------------------------------
(70,801) (45,026) (20,667) (12,169) (678) -- (7,308) (6,812) (10,257) (14,383)
- -----------------------------------------------------------------------------------------------------
(497) (1,052) (5) (4) -- -- -- -- -- --
(5,908) (2,679) (1,471) (811) -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------
(6,405) (3,731) (1,476) (815) -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------
(171) (313) (1) -- -- -- (3) (1) (5) (1)
(2,272) (399) (270) (79) -- -- (15) (4) (43) (13)
- -----------------------------------------------------------------------------------------------------
(2,443) (712) (271) (79) -- -- (18) (5) (48) (14)
- -----------------------------------------------------------------------------------------------------
295,876 340,805 13,186 21,470 18,359 36,436 4,085 11,482 30,275 46,673
63,176 41,881 19,625 11,306 649 -- 6,291 5,984 9,261 13,462
(176,933) (354,580) (26,112) (37,017) (11,034) (1,250) (17,197) (47,748) (60,152) (35,376)
- -----------------------------------------------------------------------------------------------------
182,119 28,106 6,699 (4,241) 7,974 35,186 (6,821) (30,282) (20,616) 24,759
- -----------------------------------------------------------------------------------------------------
23,435 41,164 85 171 -- -- -- -- 608 --
6,404 3,733 1,476 814 -- -- -- -- -- --
(16,755) (28,213) (132) (623) -- -- -- -- (345) --
- -----------------------------------------------------------------------------------------------------
13,084 16,684 1,429 362 -- -- -- -- 263 --
- -----------------------------------------------------------------------------------------------------
6,472 22,852 672 491 -- -- 123 200 368 583
2,401 561 271 79 -- -- 17 4 48 14
(3,718) (5,161) (263) (133) -- -- (31) (64) (148) (238)
- -----------------------------------------------------------------------------------------------------
5,155 18,252 680 437 -- -- 109 140 268 359
- -----------------------------------------------------------------------------------------------------
268,595 219,959 3,164 11,434 14,204 34,244 7,121 (31,268) (20,056) 35,452
957,697 737,738 125,333 113,899 34,244 -- 107,008 138,276 148,577 113,125
- -----------------------------------------------------------------------------------------------------
$1,226,292 $ 957,697 $128,497 $125,333 $ 48,448 $34,244 $114,129 $107,008 $128,521 $148,577
- -----------------------------------------------------------------------------------------------------
$ 1,478 $ 465 $ (10) $ 304 $ 21 $ 314 $ (27) $ 880 $ 708 $ 1,272
- -----------------------------------------------------------------------------------------------------
</TABLE>
73
<PAGE>
Northern Institutional Funds
Equity Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1998 (Unaudited) and the Years Ended November
30,
BALANCED PORTFOLIO
<TABLE>
<CAPTION>
Class A
------------------------------------------------------
1998 1997 1996 1995 1994 1993 (a)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD $ 13.59 $ 12.24 $ 11.05 $ 9.50 $ 10.22 $ 10.00
Income (loss) from in-
vestment operations:
Net investment income 0.20 0.38 0.34 0.34 0.24 0.09
Net realized and
unrealized gain (loss) 1.09 1.66 1.19 1.55 (0.72) 0.22
- --------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.29 2.04 1.53 1.89 (0.48) 0.31
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO SHARE-
HOLDERS FROM:
Net investment income (0.12) (0.38) (0.34) (0.34) (0.22) (0.09)
Net realized gain (0.51) (0.31) -- -- (0.02) --
- --------------------------------------------------------------------------------
Total distributions to
shareholders (0.63) (0.69) (0.34) (0.34) (0.24) (0.09)
- --------------------------------------------------------------------------------
Net increase (decrease) 0.66 1.35 1.19 1.55 (0.72) 0.22
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 14.25 $ 13.59 $ 12.24 $ 11.05 $ 9.50 $ 10.22
- --------------------------------------------------------------------------------
Total return (d) 9.92% 17.29% 14.07% 20.22% (4.76)% 3.12%
Ratio to average net as-
sets of (e):
Expenses, net of waiv-
ers and reimbursements 0.61% 0.61% 0.61% 0.61% 0.61% 0.61%
Expenses, before waiv-
ers and reimbursements 1.01% 1.11% 1.20% 1.28% 1.50% 1.62%
Net investment income,
net of waivers and re-
imbursements 2.77% 2.99% 3.03% 3.36% 2.56% 2.20%
Net investment income,
before waivers and re-
imbursements 2.37% 2.49% 2.44% 2.69% 1.68% 1.19%
Portfolio turnover rate 24.27% 59.06% 104.76% 93.39% 75.69% 35.03%
Net assets at end of pe-
riod (in thousands) $49,921 $51,475 $45,157 $38,897 $31,462 $15,928
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class C Class D
------------------------ ------------------------
1998 1997 1996 (b) 1998 1997 1996 (c)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD $13.56 $12.24 $11.12 $13.54 $12.23 $11.34
Income (loss) from investment
operations:
Net investment income 0.17 0.36 0.29 0.21 0.34 0.22
Net realized and unrealized
gain 1.10 1.64 1.12 1.04 1.64 0.96
- --------------------------------------------------------------------------------
Total income from investment
operations 1.27 2.00 1.41 1.25 1.98 1.18
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net investment income (0.11) (0.37) (0.29) (0.10) (0.36) (0.29)
Net realized gain (0.51) (0.31) -- (0.51) (0.31) --
- --------------------------------------------------------------------------------
Total distributions to share-
holders (0.62) (0.68) (0.29) (0.61) (0.67) (0.29)
- --------------------------------------------------------------------------------
Net increase 0.65 1.32 1.12 0.64 1.31 0.89
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF PE-
RIOD $14.21 $13.56 $12.24 $14.18 $13.54 $12.23
- --------------------------------------------------------------------------------
Total return (d) 9.78% 17.00% 12.72% 9.71% 16.82% 10.55%
Ratio to average net assets
of (e):
Expenses, net of waivers and
reimbursements 0.85% 0.85% 0.85% 1.00% 1.00% 1.00%
Expenses, before waivers and
reimbursements 1.25% 1.35% 1.44% 1.40% 1.50% 1.59%
Net investment income, net
of waivers and reimburse-
ments 2.51% 2.75% 2.80% 2.39% 2.60% 2.78%
Net investment income, be-
fore waivers and reimburse-
ments 2.11% 2.25% 2.21% 1.99% 2.10% 2.19%
Portfolio turnover rate 24.27% 59.06% 104.76% 24.27% 59.06% 104.76%
Net assets at end of period
(in thousands) $5,379 $4,587 $5,997 $ 758 $ 322 $ 232
- --------------------------------------------------------------------------------
</TABLE>
(a) For the period July 1, 1993 (commencement of operations) through November
30, 1993.
(b) For the period December 29, 1995 (Class C shares issue date) through
November 30, 1996.
(c) For the period February 20, 1996 (Class D shares issue date) through
November 30, 1996.
(d) Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the period. Total
return is not annualized for periods less than one year.
(e) Annualized for periods less than a full year.
See accompanying notes to financial statements.
74
<PAGE>
Northern Institutional Funds
Equity Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1998 (Unaudited) and the Years Ended November
30,
DIVERSIFIED GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Class A
-----------------------------------------------------------
1998 1997 1996 1995 1994 1993 (a)
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 16.20 $ 14.36 $ 12.20 $ 9.88 $ 10.65 $ 10.00
Income (loss) from
investment operations:
Net investment income 0.04 0.11 0.14 0.15 0.09 0.09
Net realized and
unrealized gain (loss) 1.94 3.33 2.33 2.26 (0.83) 0.65
- --------------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.98 3.44 2.47 2.41 (0.74) 0.74
- --------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHARE-
HOLDERS FROM:
Net investment income (0.11) (0.14) (0.15) (0.09) (0.01) (0.09)
Net realized gain (1.86) (1.46) (0.16) -- (0.02) --
- --------------------------------------------------------------------------------------
Total distributions to
shareholders (1.97) (1.60) (0.31) (0.09) (0.03) (0.09)
- --------------------------------------------------------------------------------------
Net increase (decrease) 0.01 1.84 2.16 2.32 (0.77) 0.65
- --------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 16.21 $ 16.20 $ 14.36 $ 12.20 $ 9.88 $ 10.65
- --------------------------------------------------------------------------------------
Total return (c) 14.32% 27.06% 20.83% 24.55% (6.98)% 7.38%
Ratio to average net as-
sets of (d):
Expenses, net of
waivers and
reimbursements 0.66% 0.67% 0.66% 0.69% 0.67% 0.71%
Expenses, before
waivers and
reimbursements 0.96% 1.03% 1.10% 1.12% 1.08% 1.13%
Net investment income,
net of waivers and
reimbursements 0.51% 0.76% 0.98% 1.16% 0.77% 1.04%
Net investment income,
before waivers and
reimbursements 0.21% 0.40% 0.54% 0.73% 0.35% 0.62%
Portfolio turnover rate 14.04% 45.53% 59.99% 81.65% 78.94% 140.88%
Net assets at end of pe-
riod (in thousands) $165,110 $158,383 $142,055 $146,731 $164,963 $199,053
- --------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class D
-----------------------------------------
1998 1997 1996 1995 1994 (b)
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD $16.03 $14.26 $12.16 $ 9.88 $10.41
Income (loss) from investment
operations:
Net investment income 0.04 0.09 0.11 0.11 0.01
Net realized and unrealized gain
(loss) 1.89 3.27 2.29 2.25 (0.54)
- -------------------------------------------------------------------------------
Total income (loss) from investment
operations 1.93 3.36 2.40 2.36 (0.53)
- -------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (0.07) (0.13) (0.14) (0.08) --
Net realized gain (1.86) (1.46) (0.16) -- --
- -------------------------------------------------------------------------------
Total distributions to shareholders (1.93) (1.59) (0.30) (0.08) --
- -------------------------------------------------------------------------------
Net increase (decrease) -- 1.77 2.10 2.28 (0.53)
- -------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $16.03 $16.03 $14.26 $12.16 $ 9.88
- -------------------------------------------------------------------------------
Total return (c) 14.10% 26.60% 20.39% 24.19% (5.14)%
Ratio to average net assets of (d):
Expenses, net of waivers and
reimbursements 1.05% 1.06% 1.05% 1.08% 1.05%
Expenses, before waivers and
reimbursements 1.35% 1.42% 1.49% 1.51% 1.46%
Net investment income, net of
waivers and reimbursements 0.12% 0.37% 0.59% 0.73% 0.94%
Net investment income (loss),
before waivers and reimbursements (0.18)% 0.01% 0.15% 0.30% 0.53%
Portfolio turnover rate 14.04% 45.53% 59.99% 81.65% 78.94%
Net assets at end of period (in
thousands) $1,131 $ 696 $ 433 $ 221 $ 40
- -------------------------------------------------------------------------------
</TABLE>
(a) For the period January 11, 1993 (commencement of operations) through
November 30, 1993.
(b) For the period September 14, 1994 (Class D shares issued date) through
November 30, 1994.
(c) Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the period. Total
return is not annualized for periods less than one year.
(d) Annualized for periods less than a full year.
See accompanying notes to financial statements.
75
<PAGE>
Northern Institutional Funds
Equity Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1998 (Unaudited) and the Years Ended November
30,
EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Class A
------------------------------------------------------------
1998 1997 1996 1995 1994 1993 (a)
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 20.09 $ 16.79 $ 13.86 $ 10.60 $ 10.78 $ 10.00
Income from investment
operations:
Net investment income 0.14 0.30 0.31 0.30 0.27 0.22
Net realized and
unrealized gain (loss) 2.60 4.13 3.36 3.47 (0.18) 0.78
- --------------------------------------------------------------------------------------
Total income from
investment operations 2.74 4.43 3.67 3.77 0.09 1.00
- --------------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income (0.13) (0.30) (0.31) (0.30) (0.27) (0.22)
Net realized gain (1.44) (0.83) (0.43) (0.21) -- --
- --------------------------------------------------------------------------------------
Total distributions to
shareholders (1.57) (1.13) (0.74) (0.51) (0.27) (0.22)
- --------------------------------------------------------------------------------------
Net increase (decrease) 1.17 3.30 2.93 3.26 (0.18) 0.78
- --------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 21.26 $ 20.09 $ 16.79 $ 13.86 $ 10.60 $ 10.78
- --------------------------------------------------------------------------------------
Total return (d) 14.91% 27.93% 27.53% 36.60% 0.87% 10.08%
Ratio to average net
assets of (e):
Expenses, net of
waivers and
reimbursements 0.21% 0.22% 0.22% 0.22% 0.23% 0.21%
Expenses, before
waivers and
reimbursements 0.46% 0.46% 0.50% 0.54% 0.59% 0.66%
Net investment income,
net of waivers and
reimbursements 1.43% 1.66% 2.12% 2.54% 2.62% 2.62%
Net investment income,
before waivers and
reimbursements 1.18% 1.42% 1.84% 2.22% 2.25% 2.17%
Portfolio turnover rate 1.92% 18.96% 18.02% 15.27% 71.98% 2.06%
Net assets at end of
period (in thousands) $1,086,188 $844,065 $675,804 $479,763 $281,817 $219,282
- --------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class C Class D
------------------------------------ ------------------------------------------
1998 1997 1996 1995 (b) 1998 1997 1996 1995 1994 (c)
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 20.05 $ 16.79 $ 13.86 $ 13.43 $ 20.00 $ 16.77 $13.83 $10.60 $10.96
Income (loss) from
investment operations:
Net investment income 0.13 0.26 0.28 0.05 0.11 0.26 0.27 0.25 0.02
Net realized and
unrealized gain (loss) 2.58 4.11 3.35 0.45 2.58 4.07 3.36 3.47 (0.31)
- -----------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 2.71 4.37 3.63 0.50 2.69 4.33 3.63 3.72 (0.29)
- -----------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income (0.11) (0.28) (0.27) (0.07) (0.10) (0.27) (0.26) (0.28) (0.07)
Net realized gain (1.44) (0.83) (0.43) -- (1.44) (0.83) (0.43) (0.21) --
- -----------------------------------------------------------------------------------------------------------
Total distributions to
shareholders (1.55) (1.11) (0.70) (0.07) (1.54) (1.10) (0.69) (0.49) (0.07)
- -----------------------------------------------------------------------------------------------------------
Net increase (decrease) 1.16 3.26 2.93 0.43 1.15 3.23 2.94 3.23 (0.36)
- -----------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 21.21 $ 20.05 $ 16.79 $ 13.86 $ 21.15 $ 20.00 $16.77 $13.83 $10.60
- -----------------------------------------------------------------------------------------------------------
Total return (d) 14.77% 27.64% 27.24% 3.94% 14.69% 27.45% 27.20% 36.20% (2.68)%
Ratio to average net
assets of (e):
Expenses, net of
waivers and
reimbursements 0.45% 0.46% 0.46% 0.46% 0.60% 0.61% 0.61% 0.61% 0.60%
Expenses, before
waivers and
reimbursements 0.70% 0.70% 0.74% 0.78% 0.85% 0.85% 0.89% 0.93% 0.96%
Net investment income,
net of waivers and
reimbursements 1.19% 1.42% 1.89% 2.29% 1.04% 1.27% 1.78% 2.07% 2.67%
Net investment income,
before waivers and
reimbursements 0.94% 1.18% 1.61% 1.97% 0.79% 1.03% 1.50% 1.75% 2.31%
Portfolio turnover rate 1.92% 18.96% 18.02% 15.27% 1.92% 18.96% 18.02% 15.27% 71.98%
Net assets at end of
period (in thousands) $102,104 $82,982 $53,929 $18,390 $38,000 $30,650 $8,005 $ 810 $ 3
- -----------------------------------------------------------------------------------------------------------
</TABLE>
(a) For the period January 11, 1993 (commencement of operations) through
November 30, 1993.
(b) For the period September 28, 1995 (Class C shares issue date) through
November 30, 1995.
(c) For the period September 14, 1994 (Class D shares issue date) through
November 30, 1994.
(d) Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the period. Total
return is not annualized for periods less than one year.
(e) Annualized for periods less than a full year.
See accompanying notes to financial statements.
76
<PAGE>
Northern Institutional Funds
Equity Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1998 (Unaudited) and the Years Ended November
30,
FOCUSED GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Class A
-------------------------------------------------------------
1998 1997 1996 1995 1994 1993 (a)
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 16.20 $ 14.48 $ 12.53 $ 9.79 $ 10.43 $ 10.00
Income (loss) from
investment operations:
Net investment income -- 0.05 0.02 0.05 0.02 0.01
Net realized and
unrealized gain (loss) 1.71 3.37 2.17 2.71 (0.66) 0.43
- ----------------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.71 3.42 2.19 2.76 (0.64) 0.44
- ----------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHARE-
HOLDERS FROM:
Net investment income (0.05) (0.02) (0.05) (0.02) -- (0.01)
Net realized gain (2.85) (1.68) (0.19) -- -- --
- ----------------------------------------------------------------------------------------
Total distributions to
shareholders (2.90) (1.70) (0.24) (0.02) -- (0.01)
- ----------------------------------------------------------------------------------------
Net increase (decrease) (1.19) 1.72 1.95 2.74 (0.64) 0.43
- ----------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 15.01 $ 16.20 $ 14.48 $ 12.53 $ 9.79 $ 10.43
- ----------------------------------------------------------------------------------------
Total return (d) 13.64% 27.05% 17.82% 28.38% (6.15)% 4.33%
Ratio to average net as-
sets of (e):
Expenses, net of
waivers and
reimbursements 0.93% 0.92% 0.91% 0.91% 0.91% 0.91%
Expenses, before
waivers and
reimbursements 1.30% 1.34% 1.43% 1.47% 1.55% 1.88%
Net investment income,
net of waivers and
reimbursements 0.04% 0.30% 0.12% 0.46% 0.24% 0.14%
Net investment loss,
before waivers and
reimbursements (0.33)% (0.12)% (0.40)% (0.10)% (0.39)% (0.83)%
Portfolio turnover rate 41.51% 108.29% 116.78% 85.93% 74.28% 27.48%
Net assets at end of
period (in thousands) $117,261 $115,802 $106,250 $86,099 $57,801 $32,099
- ----------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class C Class D
---------------------------- --------------------------------------
1998 1997 1996 (b) 1998 1997 1996 1995 (c)
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 16.16 $ 14.47 $ 13.46 $ 16.01 $ 14.37 $ 12.48 $ 9.55
Income (loss) from
investment operations:
Net investment income
(loss) (0.01) 0.01 (0.01) -- 0.03 (0.03) 0.02
Net realized and
unrealized gain 1.70 3.37 1.02 1.67 3.30 2.15 2.93
- ------------------------------------------------------------------------------------------------
Total income from in-
vestment operations 1.69 3.38 1.01 1.67 3.33 2.12 2.95
- ------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHARE-
HOLDERS FROM:
Net investment income (0.01) (0.01) -- (0.01) (0.01) (0.04) (0.02)
Net realized gain (2.85) (1.68) -- (2.85) (1.68) (0.19) --
- ------------------------------------------------------------------------------------------------
Total distributions to
shareholders (2.86) (1.69) -- (2.86) (1.69) (0.23) (0.02)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) (1.17) 1.69 1.01 (1.19) 1.64 1.89 2.93
- ------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 14.99 $ 16.16 $ 14.47 $ 14.82 $ 16.01 $ 14.37 $12.48
- ------------------------------------------------------------------------------------------------
Total return (d) 13.50% 26.75% 7.51% 13.47% 26.52% 17.42% 30.97%
Ratio to average net as-
sets of (e):
Expenses, net of
waivers and
reimbursements 1.17% 1.16% 1.15% 1.32% 1.31% 1.30% 1.30%
Expenses, before
waivers and
reimbursements 1.54% 1.58% 1.67% 1.69% 1.73% 1.82% 1.86%
Net investment income
(loss), net of waivers
and reimbursements (0.20)% 0.06% (0.12)% (0.35)% (0.09)% (0.28)% (0.11)%
Net investment loss,
before waivers and
reimbursements (0.57)% (0.36)% (0.64)% (0.72)% (0.51)% (0.80)% (0.67)%
Portfolio turnover rate 41.51% 108.29% 116.78% 41.51% 108.29% 116.78% 85.93%
Net assets at end of pe-
riod (in thousands) $ 9,403 $ 8,325 $ 6,993 $ 1,833 $ 1,206 $ 656 $ 489
- ------------------------------------------------------------------------------------------------
</TABLE>
(a) For the period July 1, 1993 (commencement of operations) through November
30, 1993.
(b) For the period June 14, 1996 (Class C shares issue date) through November
30, 1996.
(c) For the period December 8, 1994 (Class D shares issue date) through
November 30, 1995.
(d) Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the period. Total
return is not annualized for periods less than one year.
(e) Annualized for periods less than a full year.
See accompanying notes to financial statements.
77
<PAGE>
Northern Institutional Funds
Equity Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1998 (Unaudited) and the Year Ended November
30,
INTERNATIONAL EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Class A
-----------------
1998 1997 (a)
- ---------------------------------------------------------------------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.55 $ 10.00
Income from investment operations:
Net investment income 0.08 0.10
Net realized and unrealized gain 1.53 0.45
- ---------------------------------------------------------------------------
Total income from investment operations 1.61 0.55
- ---------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (0.17) --
- ---------------------------------------------------------------------------
Total distributions to shareholders (0.17) --
- ---------------------------------------------------------------------------
Net increase 1.44 0.55
- ---------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 11.99 $ 10.55
- ---------------------------------------------------------------------------
Total return (b) 15.59% 5.45%
Ratio to average net assets of (c):
Expenses, net of waivers and reimbursements 0.57% 0.51%
Expenses, before waivers and reimbursements 1.00% 1.08%
Net investment income, net of waivers and reimbursements 1.60% 1.75%
Net investment income, before waivers and reimbursements 1.17% 1.18%
Portfolio turnover rate 24.30% 8.16%
Net assets at end of period (in thousands) $48,448 $34,244
- ---------------------------------------------------------------------------
</TABLE>
(a) For the period April 1, 1997 (commencement of operations) through November
30, 1997.
(b) Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the period. Total
return is not annualized for periods less than one year.
(c) Annualized for periods less than a full year.
See accompanying notes to financial statements.
78
<PAGE>
Northern Institutional Funds
Equity Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1998 (Unaudited) and the Years Ended November
30,
INTERNATIONAL GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Class A
-------------------------------------------------
1998 1997 1996 1995 1994(a)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD $ 10.52 $ 10.63 $ 9.88 $ 10.21 $ 10.00
Income (loss) from invest-
ment operations:
Net investment income 0.08 0.11 0.10 0.12 0.05
Net realized and
unrealized gain (loss) 2.04 0.31 0.87 (0.36) 0.16
- --------------------------------------------------------------------------------
Total income (loss) from
investment operations 2.12 0.42 0.97 (0.24) 0.21
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLD-
ERS FROM:
Net investment income (0.16) (0.08) (0.22) (0.05) --
Net realized gain (0.57) (0.45) -- (0.04) --
- --------------------------------------------------------------------------------
Total distributions to
shareholders (0.73) (0.53) (0.22) (0.09) --
- --------------------------------------------------------------------------------
Net increase (decrease) 1.39 (0.11) 0.75 (0.33) 0.21
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF PE-
RIOD $ 11.91 $ 10.52 $ 10.63 $ 9.88 $ 10.21
- --------------------------------------------------------------------------------
Total return (c) 21.83% 4.21% 9.96% (2.32)% 2.11%
Ratio to average net assets
of (d):
Expenses, net of waivers
and reimbursements 1.06% 1.06% 1.06% 1.06% 1.04%
Expenses, before waivers
and reimbursements 1.29% 1.37% 1.43% 1.38% 1.47%
Net investment income, net
of waivers and reimburse-
ments 1.35% 0.97% 0.73% 1.22% 0.76%
Net investment income, be-
fore waivers and reim-
bursements 1.12% 0.66% 0.36% 0.90% 0.33%
Portfolio turnover rate 76.03% 154.62% 202.47% 215.31% 77.79%
Net assets at end of period
(in thousands) $113,736 $106,774 $138,182 $148,704 $133,212
- --------------------------------------------------------------------------------
<CAPTION>
Class D
-------------------------------------------------
1998 1997 1996 1995 1994(b)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD $ 10.39 $ 10.54 $ 9.83 $ 10.21 $ 10.47
Income (loss) from invest-
ment operations:
Net investment income 0.08 0.09 0.01 0.19 --
Net realized and
unrealized gain (loss) 2.00 0.29 0.92 (0.48) (0.26)
- --------------------------------------------------------------------------------
Total income (loss) from
investment operations 2.08 0.38 0.93 (0.29) (0.26)
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLD-
ERS FROM:
Net investment income (0.14) (0.08) (0.22) (0.05) --
Net realized gain (0.57) (0.45) -- (0.04) --
- --------------------------------------------------------------------------------
Total distributions to
shareholders (0.71) (0.53) (0.22) (0.09) --
- --------------------------------------------------------------------------------
Net increase (decrease) 1.37 (0.15) 0.71 (0.38) (0.26)
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF PE-
RIOD $ 11.76 $ 10.39 $ 10.54 $ 9.83 $ 10.21
- --------------------------------------------------------------------------------
Total return (c) 21.61% 3.79% 9.59% (2.78)% (2.56)%
Ratio to average net assets
of (d):
Expenses, net of waivers
and reimbursements 1.45% 1.45% 1.45% 1.45% 1.35%
Expenses, before waivers
and reimbursements 1.68% 1.76% 1.82% 1.77% 1.78%
Net investment income, net
of waivers and reimburse-
ments 1.03% 0.58% 0.44% 2.01% --
Net investment income
(loss), before waivers
and reimbursements 0.80% 0.27% 0.07% 1.69% (0.43)%
Portfolio turnover rate 76.03% 154.62% 202.47% 215.31% 77.79%
Net assets at end of period
(in thousands) $ 393 $ 234 $ 94 $ 20 $ --
- --------------------------------------------------------------------------------
</TABLE>
(a) For the period March 28, 1994 (commencement of operations) through
November 30, 1994.
(b) For the period November 16, 1994 (Class D shares issue date) through
November 30, 1994.
(c) Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the period. Total
return is not annualized for periods less than one year.
(d) Annualized for periods less than a full year.
See accompanying notes to financial statements.
79
<PAGE>
Northern Institutional Funds
Equity Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1998 (Unaudited) and the Years Ended November
30,
SMALL COMPANY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Class A
----------------------------------------------------------
1998 1997 1996 1995 1994 1993 (a)
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 15.05 $ 13.97 $ 12.98 $ 10.86 $ 11.29 $ 10.00
Income (loss) from
investment operations:
Net investment income 0.09 0.15 0.19 0.16 0.14 0.11
Net realized and
unrealized gain (loss) 0.79 2.69 1.75 2.67 (0.30) 1.29
- ------------------------------------------------------------------------------------
Total income (loss) from
investment operations 0.88 2.84 1.94 2.83 (0.16) 1.40
- ------------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income (0.14) (0.17) (0.14) (0.15) (0.02) (0.11)
Net realized gain (0.89) (1.59) (0.81) (0.56) (0.25) --
- ------------------------------------------------------------------------------------
Total distributions to
shareholders (1.03) (1.76) (0.95) (0.71) (0.27) (0.11)
- ------------------------------------------------------------------------------------
Net increase (decrease) (0.15) 1.08 0.99 2.12 (0.43) 1.29
- ------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 14.90 $ 15.05 $ 13.97 $ 12.98 $ 10.86 $ 11.29
- ------------------------------------------------------------------------------------
Total return (d) 5.88% 23.06% 15.96% 27.76% (1.54)% 14.09%
Ratio to average net
assets of (e):
Expenses, net of
waivers and
reimbursements 0.31% 0.32% 0.32% 0.32% 0.33% 0.31%
Expenses, before
waivers and
reimbursements 0.73% 0.68% 0.79% 0.81% 0.86% 1.02%
Net investment income,
net of waivers and
reimbursements 1.12% 1.22% 1.36% 1.31% 1.27% 1.25%
Net investment income,
before waivers and
reimbursements 0.70% 0.86% 0.89% 0.82% 0.74% 0.54%
Portfolio turnover rate 8.20% 42.66% 46.26% 38.46% 98.43% 26.31%
Net assets at end of
period (in thousands) $127,311 $147,887 $112,856 $94,899 $ 77,120 $54,763
- ------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class C Class D
-------- --------------------------------
1998 (b) 1998 1997 1996 1995 (c)
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $13.89 $15.01 $13.96 $12.95 $10.51
Income from investment operations:
Net investment income 0.04 0.06 0.17 0.13 0.18
Net realized and unrealized gain 0.95 0.78 2.62 1.83 2.96
- -------------------------------------------------------------------------------
Total income from investment
operations 0.99 0.84 2.79 1.96 3.14
- -------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- (0.10) (0.15) (0.14) (0.14)
Net realized gain -- (0.89) (1.59) (0.81) (0.56)
- -------------------------------------------------------------------------------
Total distributions to shareholders -- (0.99) (1.74) (0.95) (0.70)
- -------------------------------------------------------------------------------
Net increase (decrease) 0.99 (0.15) 1.05 1.01 2.44
- -------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $14.88 $14.86 $15.01 $13.96 $12.95
- -------------------------------------------------------------------------------
Total return (d) 6.27% 6.15% 22.68% 16.20% 31.62%
Ratio to average net assets of (e):
Expenses, net of waivers and
reimbursements 0.55% 0.70% 0.71% 0.71% 0.71%
Expenses, before waivers and
reimbursements 0.97% 1.12% 1.07% 1.18% 1.20%
Net investment income, net of
waivers and reimbursements 0.88% 0.73% 0.76% 1.02% 0.90%
Net investment income, before
waivers and reimbursements 0.46% 0.31% 0.40% 0.55% 0.41%
Portfolio turnover rate 8.20% 8.20% 42.66% 46.26% 38.46%
Net assets at end of period (in
thousands) $ 259 $ 951 $ 690 $ 269 $ 44
- -------------------------------------------------------------------------------
</TABLE>
(a) For the period January 11, 1993 (commencement of operations) through
November 30, 1993.
(b) For the period January 8, 1998 (Class C shares issue date) through May 31,
1998.
(c) For the period December 8, 1994 (Class D shares issue date) through
November 30, 1995.
(d) Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the period. Total
return is not annualized for periods less than one year.
(e) Annualized for periods less than a full year.
See accompanying notes to financial statements.
80
<PAGE>
Northern Institutional Funds
Fixed Income and Equity Portfolios
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
May 31, 1998
(Unaudited)
1. ORGANIZATION
Northern Institutional Funds, (the "Trust") is a Delaware business trust which
was formed on July 1, 1997, and is registered under the Investment Company Act
of 1940 (as amended) as an open-end management investment company. The Trust,
formerly known as The Benchmark Funds, changed its name effective July 15,
1998. The Trust includes seventeen portfolios, each with its own investment
objective. Prior to March 31, 1998, each portfolio was a series of The
Benchmark Funds, a Massachusetts business trust, which reorganized into the
Trust at the close of business on that date. Each Portfolio, other than the
International Bond Portfolio, is classified as a diversified investment
company. The Northern Trust Company ("Northern") is the investment adviser for
all actively managed Portfolios and is the custodian and transfer agent for
all Northern Institutional Funds. Effective April 1, 1998, Northern Trust
Quantitative Advisors, Inc. ("NTQA"), a wholly-owned subsidiary of Northern
Trust Corporation, became the investment adviser for the Equity Index,
International Equity Index and Small Company Index Portfolios. Goldman, Sachs
& Co. ("Goldman Sachs") acts as the Trust's administrator and distributor.
Presented herein are the financial statements of the fixed income and equity
portfolios (the "Portfolios").
Each of the Portfolios has four separate classes: Class A, B, C and D. Each
class is distinguished by the level of administrative support and transfer
agent service provided. As of May 31, 1998, Class A, Class C and Class D
shares are outstanding for certain Portfolios.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Portfolios in preparation of their financial statements. These
policies are in conformity with generally accepted accounting principles
("GAAP"). The presentation of financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
(a) Investment Valuation
Investments held by a Portfolio are valued at the last quoted sale price on
the exchange on which such securities are primarily traded, or if any
securities are not traded on a valuation date, at the last quoted bid price.
Securities which are traded in the over-the-counter markets are valued at the
last quoted bid price. Exchange traded futures and options are valued at the
settlement price as established by the exchange on which they are traded.
Index futures are marked to market on a daily basis. Any securities, including
restricted securities, for which current quotations are not readily available
are valued at fair value as determined in good faith by Northern under the
supervision of the Board of Trustees ("Board"). Short-term investments are
valued at amortized cost which Northern has determined, pursuant to Board
authorization, approximates market value.
(b) Investment Transactions and Investment Income
Investment transactions are recorded as of the trade date. Realized gains and
losses on investment transactions are calculated on the identified-cost basis.
Interest income is recorded on the accrual basis and includes amortization of
discounts and premiums. The interest rates reflected in the Statements of
Investments represent either the stated coupon rate, annualized yield on date
of purchase for discount notes, the current reset rate for floating rate
securities or, for interest only or principal only securities, the current
effective yield. Dividend income is recorded on the ex-dividend date.
Dividends from foreign securities are recorded on the ex-date, or as soon as
the information is available.
(c) Deferred Organization Costs
Organization related costs are being amortized on a straight-line basis over
five years.
(d) Expenses
Expenses arising in connection with a specific Portfolio are allocated to that
Portfolio. Certain expenses arising in connection with a class of shares are
allocated to that class of shares. Expenses incurred which do not specifically
relate to an individual Portfolio are allocated among the Portfolios based on
each Portfolio's relative net assets.
(e) Repurchase Agreements
During the term of a repurchase agreement, the market value of the underlying
collateral, including accrued interest, is required to exceed the market value
of the repurchase agreement. The underlying collateral for all repurchase
agreements is held in a customer-only account of Northern, as custodian for
the Trust, at the Federal Reserve Bank of Chicago.
(f) Futures Contracts
Each Portfolio may invest in long or short futures contracts for hedging
purposes, to increase total return (i.e., for
81
<PAGE>
Northern Institutional Funds
Fixed Income and Equity Portfolios
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS--CONTINUED
May 31, 1998
(Unaudited)
speculative purposes) or to maintain liquidity. The Portfolios bear the market
risk arising from changes in the value of these financial instruments. At the
time a Portfolio enters into a futures contract it is required to make a
margin deposit with the custodian of a specified amount of liquid assets.
Subsequently, as the market price of the futures contract fluctuates, gains or
losses are recorded and payments are made, on a daily basis, between the
portfolio and the broker. The Statements of Operations reflect gains and
losses as realized for closed futures contracts and as unrealized for open
futures contracts.
At May 31, 1998, the Equity Index and Small Company Index Portfolios had
entered into long exchange traded futures contracts. The aggregate market
value of assets pledged to cover margin requirements for open positions at May
31, 1998, was approximately $1,005,000 and $74,000 for the Equity Index and
Small Company Index Portfolios, respectively.
(g) Options Contracts
Each Portfolio may purchase and write (sell) put and call options on foreign
and domestic stock indices, foreign currencies, and U.S. and foreign
securities that are traded on U.S. and foreign securities exchanges and over-
the-counter markets. These transactions are for hedging (or cross-hedging)
purposes or for the purposes of earning additional income.
The risk associated with purchasing an option is that the Portfolio pays a
premium whether or not the option is exercised. Additionally, the Portfolio
bears the risk of loss of premium and change in market value should the
counterparty not perform under the contract. Put and call options purchased
are accounted for in the same manner as Portfolio securities.
The cost of securities acquired through the exercise of call options is
increased by the premiums paid. The proceeds from securities sold through the
exercise of put options are decreased by the premiums paid.
In writing an option, the Portfolio bears the market risk of an unfavorable
change in the price of the security or currency underlying the written option.
Exercise of an option written by the Portfolio could result in the Portfolio
selling or buying a security or currency at a price different from the current
market value.
The Portfolios did not write call or put options during the six months ended
May 31, 1998.
(h) Stripped Securities
Stripped securities represent the right to receive future interest payments
(interest only stripped securities) or principal payments (principal only
stripped securities). The value of variable rate interest only stripped
securities varies directly with changes in interest rates, while the value of
fixed rate interest only securities and the value of principal only stripped
securities vary inversely with changes in interest rates.
(i) Forward Foreign Currency Exchange Contracts
Certain Portfolios are authorized to enter into forward foreign currency
exchange contracts for the purchase of a specific foreign currency at a fixed
price on a future date as a hedge or cross-hedge against either specific
transactions or portfolio positions. In addition, the International Bond and
International Growth Portfolios may enter into foreign currency exchange
contracts for speculative purposes. The objective of a Portfolio's foreign
currency hedging transactions is to reduce the risk that the U.S. dollar value
of the Portfolio's foreign currency denominated securities will decline in
value due to changes in foreign currency exchange rates. All forward foreign
currency contracts are "marked-to-market" daily at the applicable exchange
rates and any resulting unrealized gains or losses are recorded in the
financial statements. The Portfolio records realized gains or losses when the
forward contract is offset by entry into a closing transaction or extinguished
by delivery of the currency. Risks may arise upon entering into these
contracts from the potential inability of counterparties to meet the terms of
their contracts and from unanticipated movements in the value of a foreign
currency relative to the U.S. dollar.
The contractual amounts of forward foreign currency exchange contracts do not
necessarily represent the amounts potentially subject to risk. The measurement
of the risks associated with these instruments is meaningful only when all
related and offsetting transactions are considered.
At May 31, 1998, there were no outstanding forward foreign currency exchange
contracts.
(j) Foreign Currency Translations
Values of investments denominated in foreign currencies are converted into
U.S. dollars using the spot market rate of exchange at the time of valuation.
Cost of purchases and proceeds from sales of investments, interest and
dividend income are translated into U.S. dollars using the spot market rate of
exchange prevailing on the respective dates of such transactions.
The gains or losses on investments resulting from changes in foreign exchange
rates are included with net realized and unrealized gain (loss) on
investments.
82
<PAGE>
- -------------------------------------------------------------------------------
(k) Federal Taxes
It is each Portfolio's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute,
each year, substantially all of its taxable income and capital gains to its
shareholders. Therefore, no provision is made for federal taxes.
At November 30, 1997, the Trust's most recent tax year end, the Portfolios
had approximately the following amounts of capital loss carryforwards for U.S.
federal tax purposes:
<TABLE>
<CAPTION>
Year(s) of
Amount Expiration
- -------------------------------------------------------
(in thousands)
<S> <C> <C>
Intermediate Bond $ 21 2005
Short-Intermediate Bond 10 2005
U.S. Government Securities 130 2001 to 2003
U.S. Treasury Index 1,046 2002 to 2005
International Equity Index 4 2005
- -------------------------------------------------------
</TABLE>
These amounts are available to be carried forward to offset future capital
gains to the extent permitted by applicable laws or regulations.
(l) Distributions
Dividends from net investment income are declared and paid as follows:
<TABLE>
- -------------------------------------
<S> <C>
Bond Monthly
Intermediate Bond Monthly
International Bond Quarterly
Short-Intermediate Bond Monthly
U.S. Government Securities Monthly
U.S. Treasury Index Monthly
Balanced Quarterly
Diversified Growth Annually
Equity Index Quarterly
Focused Growth Annually
International Equity Index Annually
International Growth Annually
Small Company Index Annually
- -------------------------------------
</TABLE>
Each Portfolio's net realized capital gains are distributed at least
annually. Income dividends and capital gain distributions are determined in
accordance with income tax regulations. Such amounts may differ from income
and capital gains recorded in accordance with generally accepted accounting
principles.
3. ADVISORY, TRANSFER AGENCY AND CUSTODIAN AGREEMENTS
The Trust has an investment advisory agreement whereby each Portfolio pays
Northern or NTQA, as the case may be, a fee, computed daily and payable
monthly, based on a specified percentage of its average daily net assets. For
the current period, Northern and NTQA each voluntarily agreed to waive a
portion of the advisory fees as shown on the accompanying Statements of
Operations. The annual advisory fees and waiver rates expressed as a
percentage of average daily net assets for the six months ended May 31, 1998,
are as follows:
<TABLE>
<CAPTION>
Net
Advisory Less: Advisory
Fee Waiver Fee
- ----------------------------------------------------
<S> <C> <C> <C>
Bond .60% .35% .25%
Intermediate Bond .60 .35 .25
International Bond .90 .20 .70
Short-Intermediate Bond .60 .35 .25
U.S. Government Securities .60 .35 .25
U.S. Treasury Index .40 .25 .15
Balanced .80 .30 .50
Diversified Growth .80 .25 .55
Equity Index .30 .20 .10
Focused Growth 1.10 .30 .80
International Equity Index .50 .25 .25
International Growth 1.00 .20 .80
Small Company Index .40 .20 .20
- ----------------------------------------------------
</TABLE>
As compensation for the services rendered as transfer agent, including the
assumption by Northern of the expenses related thereto, Northern receives a
fee, computed daily and payable monthly, at an annual rate of .01%, .05%, .10%
and .15% of the average daily net asset value of the outstanding Class A, B, C
and D shares, respectively, for the Portfolios.
83
<PAGE>
Northern Institutional Funds
Fixed Income and Equity Portfolios
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS--CONTINUED
May 31, 1998
(Unaudited)
4. ADMINISTRATION AND DISTRIBUTION AGREEMENTS
The Trust has an administration agreement with Goldman Sachs whereby each
Portfolio pays the Administrator a fee, computed daily and payable monthly, at
an annual rate of .10% of the Portfolio's average daily net assets, except the
International Bond, International Equity Index and International Growth
Portfolios which pay the Administrator a fee, computed daily and payable
monthly, at an annual rate of .15% of their respective average daily net
assets.
In addition, if in any fiscal year the sum of a Portfolio's expenses,
including the administration fee, but excluding the investment advisory fee to
Northern pursuant to its agreements with the Trust, servicing fees, transfer
agency fees and extraordinary expenses (such as taxes, interest and
indemnification expenses), exceeds on an annualized basis .10% of a
Portfolio's average daily net assets (0.25% for the International Bond,
International Growth and International Equity Index Portfolios), Goldman Sachs
will reimburse each Portfolio for the amount of the excess pursuant to the
terms of the administration agreement.
The administration expenses reimbursed during the six months ended May 31,
1998 are shown on the accompanying Statements of Operations. No administration
fees were waived, under this agreement, during the six months ended May 31,
1998.
Goldman Sachs receives no compensation under the distribution agreement.
5. SHAREHOLDER SERVICING PLAN
The Trust has adopted a Shareholder Servicing Plan pursuant to which the Trust
may enter into agreements with institutions or other financial intermediaries
under which they will render certain shareholder administrative support
services for their customers or other investors who beneficially own Class B,
C and D shares. As compensation under the Shareholder Servicing Plan, the
institution or other financial intermediary receives a fee at an annual rate
of up to .10%, .15% and .25% of the average daily net asset value of the
outstanding Class B, C and D shares, respectively.
6. INVESTMENT TRANSACTIONS
Investment transactions for the six months ended May 31, 1998 (excluding
short-term investments) were as follows:
<TABLE>
<CAPTION>
Proceeds
from sales Proceeds
and from sales
Purchases maturities and
of U.S. Purchases of U.S. maturities
Government of other Government of other
Obligations securities Obligations securities
- -------------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond $58,175 $121,616 $120,135 $354,820
Intermediate Bond 9,744 4,372 2,642 1,086
International Bond -- 3,555 -- 4,516
Short-
Intermediate Bond 52,440 30,691 55,057 12,164
U.S. Government Securities 19,160 -- 20,992 --
U.S. Treasury Index 12,458 -- 26,060 --
Balanced 3,370 9,949 3,425 14,016
Diversified Growth -- 22,140 -- 29,722
Equity Index -- 161,470 -- 20,846
Focused Growth -- 53,952 -- 65,384
EAFE -- 21,050 -- 11,151
International Growth -- 76,043 -- 90,898
Small Company Index -- 11,652 -- 32,395
- -------------------------------------------------------------------------
</TABLE>
84
<PAGE>
- -------------------------------------------------------------------------------
As of May 31, 1998, the composition of unrealized appreciation (depreciation)
of investment securities (including the effects of foreign currency
translation and excluding futures transactions) based on the aggregate cost of
investments for federal income tax purposes were as follows:
<TABLE>
<CAPTION>
Cost for
Federal
Net Income
Appreciation Tax
Appreciation Depreciation (Depreciation) Purposes
- -----------------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond $18,654 $3,405 $15,249 $531,431
Intermediate Bond 113 69 44 24,169
International Bond 851 1,412 (561) 25,716
Short-Intermediate Bond 1,837 5,209 (3,372) 211,293
U.S.
Government Securities 476 221 255 45,571
U.S. Treasury Index 671 9 662 20,957
Balanced 11,567 296 11,271 43,937
Diversified Growth 64,826 1,039 63,787 101,684
Equity Index 455,914 10,615 445,299 779,318
Focused Growth 32,470 1,848 30,622 97,762
International Equity Index 8,002 4,101 3,901 43,978
International Growth 20,432 1,801 18,631 94,655
Small Company Index 32,796 8,316 24,480 103,664
- -----------------------------------------------------------------------------
</TABLE>
7. BANK LOANS
Prior to January 16, 1998, the Trust maintained a $5,000,000 revolving bank
credit line and a $15,000,000 conditional revolving credit line for liquidity
and other purposes. As of January 16, 1998, the Trust maintains a $100,000,000
revolving bank credit line and a $15,000,000 conditional revolving credit line
for liquidity and other purposes. Borrowings under this arrangement bear
interest at 1% above the federal funds rate and are secured by pledged
securities equal to or exceeding 120% of the outstanding balance.
Interest expense for the six months ended May 31, 1998 was approximately
$14,000, $15,000, $13,000, and $2,000 for the Equity Index, Focused Growth,
International Equity Index, and Small Company Index Portfolios, respectively.
These amounts are included in "Other Expenses" on the Statements of
Operations.
As of May 31, 1998, there were no outstanding borrowings.
8. SHARE TRANSACTIONS
Transactions in Class A shares for the six months ended May 31, 1998 were as
follows:
<TABLE>
<CAPTION>
Net
Reinvested increase
Sales distributions Redemptions (decrease)
- -----------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond 3,587 730 2,790 1,527
Intermediate Bond 823 25 225 623
International Bond 37 31 88 (20)
Short-Intermediate Bond 3,963 370 3,763 570
U.S. Government Securities 133 54 235 (48)
U.S. Treasury Index 603 13 1,294 (678)
Balanced 556 185 1,024 (283)
Diversified Growth 365 1,323 1,277 411
Equity Index 14,442 3,437 8,818 9,061
Focused Growth 921 1,532 1,790 663
International Equity Index 1,669 63 935 797
International Growth 387 644 1,636 (605)
Small Company
Index 2,056 673 4,013 (1,284)
- -----------------------------------------------------------------------
</TABLE>
85
<PAGE>
Northern Institutional Funds
Fixed Income and Equity Portfolios
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS--CONTINUED
May 31, 1998
(Unaudited)
Transactions in Class A shares for the year ended November 30, 1997 were as
follows:
<TABLE>
<CAPTION>
Net
Reinvested increase
Sales distributions Redemptions (decrease)
- -----------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond 7,554 1,111 4,475 4,190
Intermediate Bond 594 9 -- 603
International Bond 56 74 363 (233)
Short-Intermediate Bond 5,953 572 4,056 2,469
U.S. Government Securities 3,473 227 6,148 (2,448)
U.S. Treasury Index 1,031 59 740 350
Balanced 609 205 717 97
Diversified Growth 939 1,144 2,201 (118)
Equity Index 18,925 2,547 19,705 1,767
Focused Growth 1,481 905 2,575 (189)
International Equity Index 3,356 -- 111 3,245
International Growth 1,116 606 4,566 (2,844)
Small Company Index 3,221 1,087 2,562 1,746
- -----------------------------------------------------------------------
</TABLE>
Transactions in Class C shares for the six months ended May 31, 1998 were as
follows:
<TABLE>
<CAPTION>
Net
Reinvested increase
Sales distributions Redemptions (decrease)
- ----------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond 708 92 510 290
U.S. Government Securities 30 4 24 10
Balanced 44 17 20 41
Equity Index 1,153 349 828 674
Focused Growth 6 115 9 112
Small Company Index 42 -- 24 18
- ----------------------------------------------------------------------
</TABLE>
Transactions in Class C shares for the year ended November 30, 1997 were as
follows:
<TABLE>
<CAPTION>
Net
Reinvested increase
Sales distributions Redemptions (decrease)
- ----------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond 2,988 104 1,045 2,047
U.S. Government Securities 67 10 97 (20)
Balanced 89 25 266 (152)
Equity Index 2,220 226 1,520 926
Focused Growth 12 65 45 32
- ----------------------------------------------------------------------
</TABLE>
Transactions in Class D units for the six months ended May 31, 1998 were as
follows:
<TABLE>
<CAPTION>
Net
Reinvested increase
Sales distributions Redemptions (decrease)
- ----------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond 61 2 15 48
International Bond 3 1 2 2
Short-
Intermediate Bond 19 2 6 15
U.S. Government Securities 28 -- 7 21
U.S. Treasury Index 17 1 7 11
Balanced 43 2 16 29
Diversified Growth 26 8 7 27
Equity Index 316 131 183 264
Focused Growth 46 21 18 49
International Growth 11 2 3 10
Small Company Index 25 3 10 18
- ----------------------------------------------------------------------
</TABLE>
Transactions in Class D units for the year ended November 30, 1997 were as
follows:
<TABLE>
<CAPTION>
Net
Reinvested increase
Sales distributions Redemptions (decrease)
- ----------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond 32 1 15 18
International Bond 3 -- -- 3
Short-Intermediate Bond 31 1 5 27
U.S. Government Securities 6 -- 1 5
U.S. Treasury Index 55 2 16 41
Balanced 12 1 8 5
Diversified Growth 16 4 6 14
Equity Index 1,302 34 281 1,055
Focused Growth 32 6 9 29
International Growth 19 -- 5 14
Small Company
Index 43 1 17 27
- ----------------------------------------------------------------------
</TABLE>
86
<PAGE>
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87
<PAGE>
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88
<PAGE>
Investment Advisers:
The Northern Trust Company
Northern Trust Quantitative Advisors, Inc.
50 South LaSalle Street
Chicago, Illinois 60675
Transfer Agent and Custodian:
The Northern Trust Company
Administrator and Distributor:
Goldman, Sachs & Co.
4900 Sears Tower
Chicago, IL 60606
This Semi-Annual Report is authorized for distribution to prospective
investors only when preceded or accompanied by a Prospectus which contains
facts concerning the objectives and policies, management expenses and
other information.
