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Northern Funds
- - - - MONEY MARKET FUND - - - U.S. GOVERNMENT MONEY MARKET FUND
- - - - U.S. GOVERNMENT SELECT MONEY MARKET FUND - - - MUNICIPAL
MONEY MARKET FUND - - - CALIFORNIA MUNICIPAL MONEY MARKET FUND
SEMI-ANNUAL REPORT
September 30, 1998
<PAGE>
- -----------------
TABLE OF CONTENTS
PAGE
Abbreviations and Other Information.............................1
Money Market Funds
Statements of Assets and Liabilities.........................2
Statements of Operations.................................... 3
Statements of Changes in Net Assets......................... 4
Financial Highlights.........................................6
Schedules of Investments
Money Market Fund........................................10
U.S. Government Money Market Fund........................14
U.S. Government Select Money Market Fund.................15
Municipal Money Market Fund..............................16
California Municipal Money Market Fund...................28
Notes to the Financial Statements..............................31
<PAGE>
NORTHERN FUNDS Semi-Annual Report
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ABBREVIATIONS AND
OTHER INFORMATION
With respect to the Schedules of Investments, the percentage shown for each
investment category reflects the value of investments in that category as a
percentage of total net assets.
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.
Prerefunding is a procedure in which a bond issuer floats a second bond in order
to pay off the first bond at the first call date. The proceeds from the sale of
the second bond are safely invested, usually in Treasury securities, that will
mature at the first call date of the first bond issue. Those first bonds are
said to be prerefunded after this operation has taken place.
Maturity dates represent the stated date on the security, the next interest
reset date or next puttable dates for floating rate securities or the
prerefunded date for these types of securities.
EXPLANATION OF ABBREVIATIONS
USED THROUGHOUT THE
SCHEDULES OF INVESTMENTS
ADP Automated Data Processing
AMBAC American Municipal Bond
Assurance Corp.
AMT Alternative Minimum Tax
BAN Bond Anticipation Note
BTP Banker's Trust Partnership
COLLD. Collateralized
COP Certificate of Participation
CP Commercial Paper
FFCB Federal Farm Credit Bank
FGIC Financial Guaranty
Insurance Corp.
FHA Federal Housing
Authority
FHLB Federal Home Loan Bank
FMC Fidelity Mortgage Corp.
FNMA Fannie Mae
FRN Floating Rate Note
FSA Financial Security Assurance
G.O. General Obligation
GNMA Government National
Mortgage Association
GTD. Guaranteed
HDA Housing Development Authority
HFA Housing Finance Authority
HFC Housing Finance Committee
IDA Industrial Development
Authority
IDR Industrial Development Revenue
LOC Letter of Credit
MBIA Municipal Bond Insurance
Association
MTN Medium Term Note
P-FLOATS Puttable Floating Rate Security
PCR Pollution Control Revenue
PSF Permanent School Fund
RAN Revenue Anticipation Note
SFM Single Family Mortgage
SLMA SLM Holding Corp.
SOC GEN Societe Generale
TOB Tender Option Bond
TOCR Tender Option Custodial Receipt
TRAN Tax and Revenue
Anticipation Note
VRDN Variable Rate Demand Note
-----------------
NOT FDIC-INSURED
-----------------
May lose value
No bank guarantee
-----------------
Northern Funds(R) are not insured or guaranteed by the U.S. government, nor can
there be any assurance that the money market funds will be able to maintain a
stable net asset value of $1.00 per share.
Shares of Northern Funds are distributed by an independent third party, Sunstone
Distribution Services, LLC, and sold by The Northern Trust Company and its bank
affiliates.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
- --------------------
STATEMENTS OF ASSETS AND LIABILITIES SEPTEMBER 30, 1998 (UNAUDITED)
MONEY MARKET FUNDS
<TABLE>
<CAPTION> U.S.
U.S. GOV'T. CALIFORNIA
GOV'T. SELECT MUNICIPAL MUNICIPAL
MONEY MONEY MONEY MONEY MONEY
MARKET MARKET MARKET MARKET MARKET
AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA FUND FUND FUND FUND FUND
- -------------------------------------------- --------- --------- --------- --------- ---------
<C> <C> <C> <C> <C>
ASSETS:
Investments, at amortized cost $3,756,582 $328,743 $322,433 $1,964,240 $244,914
Repurchase agreements, at cost which
approximates market value - 100,000 - - -
Cash - - - - 66
Income receivable 19,587 1,432 919 12,741 1,837
Receivable for fund shares sold 58,717 436 - 843 173
Receivable for securities sold 100 - - 6,055 970
Receivable from Adviser 37 5 5 18 4
Deferred organization costs,
net of accumulated amortization 14 5 5 16 4
Prepaid and other assets 63 20 25 43 9
- ------------------------------------------------------------------------------------------------------------------------------
Total Assets 3,835,100 430,641 323,387 1,983,956 247,977
- ------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Due to Custodian 276 - - 34 -
Dividends payable 15,568 1,872 1,313 5,111 611
Payable for fund shares redeemed - - 90 12,698 5,180
Payable for securities purchased - - - 3,572 5,031
Accrued investment advisory fees 247 29 21 129 16
Accrued administration fees 267 28 18 160 19
Accrued transfer agent fees 62 7 5 32 4
Accrued custody and accounting fees - 1 2 6 -
Accrued registration fees and other liabilities 113 27 15 58 19
- ------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 16,533 1,964 1,464 21,800 10,880
- ------------------------------------------------------------------------------------------------------------------------------
Net Assets $3,818,567 $428,677 $321,923 $1,962,156 $237,097
==============================================================================================================================
ANALYSIS OF NET ASSETS:
Capital stock $3,818,449 $428,646 $321,909 $1,961,833 $237,085
Accumulated undistributed net investment income 101 27 14 180 13
Accumulated undistributed net
realized gains (losses) 17 4 - 143 (1)
- ------------------------------------------------------------------------------------------------------------------------------
Net Assets $3,818,567 $428,677 $321,923 $1,962,156 $237,097
==============================================================================================================================
SHARES OUTSTANDING
($.0001 PAR VALUE, UNLIMITED AUTHORIZATION) 3,818,544 428,673 321,922 1,961,942 237,098
NET ASSET VALUE,
REDEMPTION AND OFFERING PRICE PER SHARE $1.00 $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to the Financial Statements.
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NORTHERN FUNDS Semi-Annual Report
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STATEMENTS OF OPERATIONS SIX MONTHS ENDED SEPTEMBER 30, 1998 (UNAUDITED)
MONEY MARKET FUNDS
<TABLE>
<CAPTION>
U.S.
U.S. GOV'T. CALIFORNIA
GOV'T. SELECT MUNICIPAL MUNICIPAL
MONEY MONEY MONEY MONEY MONEY
MARKET MARKET MARKET MARKET MARKET
AMOUNTS IN THOUSANDS FUND FUND FUND FUND FUND
- -------------------------------------------- --------- --------- --------- --------- ---------
<C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $97,626 $11,695 $8,803 $35,401 $4,370
- ------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 10,318 1,246 953 5,736 757
Administration fees 2,579 312 238 1,434 189
Transfer agent fees 1,720 208 159 956 126
Custody and accounting fees 355 64 48 213 44
Registration fees 193 26 33 49 6
Professional fees 40 12 11 26 10
Trustees' fees and expenses 28 4 3 17 3
Amortization of organization costs 13 5 1 15 2
Other 92 30 11 59 8
- ------------------------------------------------------------------------------------------------------------------------------
Total Expenses 15,338 1,907 1,457 8,505 1,145
Less voluntary waivers of:
Investment advisory fees (3,440) (415) (318) (1,912) (253)
Administration fees (1,471) (177) (139) (790) (106)
Less: Reimbursement of expenses by Adviser (969) (173) (127) (545) (92)
- ------------------------------------------------------------------------------------------------------------------------------
Net Expenses 9,458 1,142 873 5,258 694
- ------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 88,168 10,553 7,930 30,143 3,676
- ------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAINS (LOSSES) ON:
Investments 14 - - (3) -
- ------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $88,182 $10,553 $7,930 $30,140 $3,676
==============================================================================================================================
</TABLE>
See Notes to the Financial Statements.
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NORTHERN FUNDS Semi-Annual Report
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STATEMENTS OF CHANGES IN NET ASSETS
MONEY MARKET FUNDS
<TABLE>
<CAPTION>
U.S. GOVERNMENT
MONEY MARKET MONEY MARKET
FUND FUND
---------------------------------- ----------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, SEPT. 30, MAR. 31,
1998 1998 1998 1998
AMOUNTS IN THOUSANDS (UNAUDITED) (UNAUDITED)
- -------------------------------------------- ------------- ------------- ------------- -------------
<C> <C> <C> <C>
OPERATIONS:
Net investment income $ 88,168 $ 123,232 $ 10,553 $ 17,384
Net realized gains
(losses) on investments 14 3 - 4
- ------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets
Resulting from Operations 88,182 123,235 10,553 17,388
- ------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 5,622,208 11,527,035 1,167,146 1,747,441
Shares from reinvestment
of dividends 15,005 15,289 2,155 3,063
Shares redeemed (5,114,690) (9,853,484) (1,157,666) (1,647,725)
- ------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets
Resulting from Capital
Share Transactions 522,523 1,688,840 11,635 102,779
- ------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID:
From net investment income (88,168) (123,232) (10,553) (17,384)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 522,537 1,688,843 11,635 102,783
NET ASSETS:
Beginning of period 3,296,030 1,607,187 417,042 314,259
- ------------------------------------------------------------------------------------------------------------------------------
End of period $3,818,567 $3,296,030 $428,677 $417,042
==============================================================================================================================
ACCUMULATED UNDISTRIBUTED
NET INVESTMENT INCOME $101 $101 $27 $27
==============================================================================================================================
</TABLE>
See Notes to the Financial Statements.
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NORTHERN FUNDS Semi-Annual Report
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STATEMENTS OF CHANGES IN NET ASSETS
MONEY MARKET FUNDS
<TABLE>
<CAPTION>
U.S. GOVERNMENT CALIFORNIA
SELECT MUNICIPAL MUNICIPAL
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
---------------------------- ---------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, SEPT. 30, MAR. 31, SEPT. 30, MAR. 31,
1998 1998 1998 1998 1998 1998
AMOUNTS IN THOUSANDS (UNAUDITED) (UNAUDITED) (UNAUDITED)
- ----------------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
<C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 7,930 $ 11,165 $ 30,143 $ 48,537 $ 3,676 $ 6,740
Net realized gains
(losses) on investments - 1 (3) 255 - (1)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets
Resulting from Operations 7,930 11,166 30,140 48,792 3,676 6,739
- -----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 523,025 1,006,456 4,143,102 7,708,423 728,302 1,249,341
Shares from reinvestment
of dividends 2,437 3,723 4,531 5,789 930 1,007
Shares redeemed (509,964) (871,883) (3,999,817) (7,320,165) (716,978) (1,226,493)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets
Resulting from Capital
Share Transactions 15,498 138,296 147,816 394,047 12,254 23,855
- -----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID:
From net investment income (7,930) (11,165) (30,143) (48,537) (3,676) (6,740)
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 15,498 138,297 147,813 394,302 12,254 23,854
NET ASSETS:
Beginning of period 306,425 168,128 1,814,343 1,420,041 224,843 200,989
- -----------------------------------------------------------------------------------------------------------------------------------
End of period $321,923 $306,425 $1,962,156 $1,814,343 $237,097 $224,843
===================================================================================================================================
ACCUMULATED UNDISTRIBUTED
NET INVESTMENT INCOME $14 $14 $180 $180 $13 $13
===================================================================================================================================
</TABLE>
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
- ---------------------
FINANCIAL HIGHLIGHTS
MONEY MARKET FUNDS
<TABLE>
<CAPTION>
MONEY MARKET
FUND
----------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
1998 1998 1997 1996 1995<F1>
(UNAUDITED)
- -------------------------------------------- --------- --------- --------- --------- ---------
SELECTED PER SHARE DATA
<C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.03 0.05 0.05 0.05 0.04
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.03) (0.05) (0.05) (0.05) (0.04)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
==============================================================================================================================
TOTAL RETURN<F3> 2.60% 5.31% 5.05% 5.57% 4.55%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $3,818,567 $3,296,030 $1,607,187 $1,061,813 $894,279
Ratio to average net assets of<F4>:
Expenses, after waivers and
reimbursements 0.55% 0.55% 0.55% 0.49% 0.45%
Expenses, before waivers and
reimbursements 0.89% 0.90% 0.90% 0.91% 0.96%
Net investment income, after
waivers and reimbursements 5.13% 5.19% 4.94% 5.42% 4.94%
Net investment income, before
waivers and reimbursements 4.79% 4.84% 4.59% 5.00% 4.43%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
NORTHERN FUNDS Semi-Annual Report
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FINANCIAL HIGHLIGHTS
MONEY MARKET FUNDS
<TABLE>
<CAPTION>
U.S. GOVERNMENT
MONEY MARKET
FUND
----------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
1998 1998 1997 1996 1995<F1>
(UNAUDITED)
- -------------------------------------------- --------- --------- --------- --------- ---------
SELECTED PER SHARE DATA
<C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.03 0.05 0.05 0.05 0.04
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.03) (0.05) (0.05) (0.05) (0.04)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
==============================================================================================================================
TOTAL RETURN<F3> 2.57% 5.22% 4.93% 5.46% 4.47%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $428,677 $417,042 $314,259 $207,105 $227,543
Ratio to average net assets of<F4>:
Expenses, after waivers and
reimbursements 0.55% 0.55% 0.55% 0.49% 0.45%
Expenses, before waivers and
reimbursements 0.92% 0.93% 0.96% 0.94% 1.01%
Net investment income, after
waivers and reimbursements 5.08% 5.10% 4.82% 5.33% 4.93%
Net investment income, before
waivers and reimbursements 4.71% 4.72% 4.41% 4.88% 4.37%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
NORTHERN FUNDS Semi-Annual Report
- ---------------------
FINANCIAL HIGHLIGHTS
MONEY MARKET FUNDS
<TABLE>
<CAPTION>
U.S. GOVERNMENT
SELECT
MONEY MARKET
FUND
----------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
1998 1998 1997 1996 1995<F2>
(UNAUDITED)
- -------------------------------------------- --------- --------- --------- --------- ---------
SELECTED PER SHARE DATA
<C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.03 0.05 0.05 0.05 0.02
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.03) (0.05) (0.05) (0.05) (0.02)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
==============================================================================================================================
TOTAL RETURN<F3> 2.53% 5.24% 5.07% 5.55% 1.75%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $321,923 $306,425 $168,128 $85,400 $82,162
Ratio to average net assets of<F4>:
Expenses, after waivers and
reimbursements 0.55% 0.46% 0.40% 0.33% 0.30%
Expenses, before waivers and
reimbursements 0.92% 0.93% 0.97% 1.00% 1.32%
Net investment income, after
waivers and reimbursements 5.00% 5.13% 4.95% 5.43% 5.84%
Net investment income, before
waivers and reimbursements 4.63% 4.66% 4.38% 4.76% 4.82%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> For the period April 11, 1994 (commencement of operations) through
March 31, 1995.
<F2> For the period December 12, 1994 (commencement of operations) through
March 31, 1995.
<F3> 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.
<F4> Annualized for periods less than a full year.
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
- ---------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
MONEY MARKET FUNDS
<TABLE>
<CAPTION>
MUNICIPAL
MONEY MARKET
FUND
----------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
1998 1998 1997 1996 1995<F1>
(UNAUDITED)
- -------------------------------------------- --------- --------- --------- --------- ---------
SELECTED PER SHARE DATA
<C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.02 0.03 0.03 0.03 0.03
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.02) (0.03) (0.03) (0.03) (0.03)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
==============================================================================================================================
TOTAL RETURN<F3> 1.59% 3.27% 3.14% 3.54% 2.90%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $1,962,156 $1,814,343 $1,420,041 $1,102,789 $927,747
Ratio to average net assets of<F4>:
Expenses, after waivers and
reimbursements 0.55% 0.55% 0.55% 0.49% 0.45%
Expenses, before waivers and
reimbursements 0.89% 0.89% 0.90% 0.91% 0.95%
Net investment income, after
waivers and reimbursements 3.15% 3.20% 3.08% 3.46% 3.10%
Net investment income, before
waivers and reimbursements 2.81% 2.86% 2.73% 3.04% 2.60%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
NORTHERN FUNDS Semi-Annual Report
- ---------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
MONEY MARKET FUNDS
<TABLE>
<CAPTION>
CALIFORNIA
MUNICIPAL
MONEY MARKET
FUND
----------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
1998 1998 1997 1996 1995<F2>
(UNAUDITED)
- -------------------------------------------- --------- --------- --------- --------- ---------
SELECTED PER SHARE DATA
<C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.01 0.03 0.03 0.04 0.01
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.01) (0.03) (0.03) (0.04) (0.01)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
==============================================================================================================================
TOTAL RETURN<F3> 1.47% 3.20% 3.19% 3.63% 1.27%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $237,097 $224,843 $200,989 $165,087 $161,316
Ratio to average net assets of<F4>:
Expenses, after waivers and
reimbursements 0.55% 0.49% 0.45% 0.39% 0.35%
Expenses, before waivers and
reimbursements 0.91% 0.94% 0.94% 0.94% 1.07%
Net investment income, after
waivers and reimbursements 2.91% 3.14% 3.13% 3.55% 3.78%
Net investment income, before
waivers and reimbursements 2.55% 2.69% 2.64% 3.00% 3.06%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> For the period April 11, 1994 (commencement of operations) through
March 31, 1995.
<F2> For the period November 29, 1994 (commencement of operations) through
March 31, 1995.
<F3> 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.
<F4> Annualized for periods less than a full year.
See Notes to the Financial Statements.
<PAGE>
- --------------------
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MONEY MARKET FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT - 9.5%
DOMESTIC CERTIFICATES OF DEPOSIT - 4.6%
Bankers Trust New York Corp.
$29,000 6.01%, 12/10/98 $ 29,011
25,000 5.58%, 1/22/99 24,995
40,000 5.71%, 7/1/99 39,989
10,000 Bank One Milwaukee,
5.55%, 1/29/99 9,999
25,000 CrestarBank,
5.59%, 2/2/99 24,998
46,000 Union Bank of California,
5.72%, 12/8/98 46,000
----------
174,992
----------
FOREIGN CERTIFICATES OF DEPOSIT - 4.9%
Banque Nationale de Paris, New York Branch
35,000 5.52%, 2/18/99 34,974
24,000 5.71%, 3/30/99 23,988
20,000 5.75%, 4/23/99 19,995
32,000 Barclays Bank, New York Branch,
5.56%, 2/25/99 31,992
Canadian Bank Imperial Bank of
Commerce, New York Branch
10,000 5.94%, 10/21/98 10,000
21,000 5.74%, 4/28/99 20,988
Societe Generale, New York Branch
10,000 5.70%, 1/7/99 10,001
15,000 5.75%, 3/5/99 14,998
20,000 5.75%, 4/19/99 19,995
----------
186,931
----------
Total Certificates of Deposit
(cost $351,924) 361,923
----------
COMMERCIAL PAPER - 54.6%
ASSET BACKED SECURITIES - 25.1%
9,300 ABC Funding,
5.52%, 11/2/98 9,254
2,766 Atlantic One Funding Corp.,
5.33%, 1/14/99 2,723
Centauri Corp.
50,000 5.32%, 3/8/99 48,833
20,000 5.10%, 3/25/98 19,504
23,175 Clipper Receivables,
5.85%, 10/1/98 23,175
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
ASSET BACKED SECURITIES - 25.1% (CONT'D.)
$20,761 Compass Securitization,
5.59%, 10/26/98 $ 20,680
36,940 Concord Minutemen Capital Co.,
5.50%, 11/5/98 36,742
75,000 Cooper Industries, Inc.,
5.85%, 10/1/98 75,000
Cooperative Association of Tractor
15,500 5.70%, 10/5/98 15,490
13,900 5.52%, 11/16/98 13,802
2,500 5.30%, 1/8/99 2,464
1,100 5.30%, 1/15/99 1,083
2,000 5.23%, 3/17/99 1,951
Corporate Receivables Corp.
25,000 5.31%, 12/7/98 24,753
1,250 5.35%, 12/9/98 1,237
CPI Funding
34,476 5.54%, 10/26/98 34,343
24,972 5.35%, 11/25/98 24,768
20,227 5.07%, 12/25/98 19,809
Dakota Certificates Program
25,000 5.46%, 12/3/98 24,761
25,000 5.46%, 12/4/98 24,757
Diageo PLC
8,000 5.47%, 12/4/98 7,914
24,000 5.33%, 12/11/98 23,748
8,500 5.47%, 12/11/98 8,417
Grayhawk Funding
62,000 5.80%, 10/1/98 62,000
12,500 5.11%, 3/16/99 12,206
Kitty Hawk Funding Corp.
9,344 5.30%, 11/20/98 9,275
34,177 5.46%, 2/16/99 33,462
9,260 KZH Cypress Tree I Corp.,
5.50%, 12/4/98 9,169
4,407 KZH-ING,
5.50%, 12/10/98 4,359
KZH-IV Corp.
6,000 5.53%, 12/10/98 5,936
5,115 5.55%, 12/21/98 5,051
KZH Pamco
5,000 5.56%, 10/22/98 4,984
10,709 5.56%, 10/29/98 10,663
KZH Soleil Corp.
11,821 5.49%, 10/13/98 11,800
5,073 5.56%, 10/16/98 5,061
7,622 5.57%, 10/22/98 7,597
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
ASSET BACKED SECURITIES - 25.1% (CONT'D.)
$55,000 MPF Limited,
5.33%, 11/16/98 $ 54,625
Old Line Funding Corp.
6,692 5.60%, 10/8/98 6,685
12,571 5.56%, 10/23/98 12,528
8,101 Pooled Account Receivables Corp.,
5.40%, 12/15/98 8,010
10,000 SALTS (II) Cayman Islands Corp.,
5.74%, 6/17/99 10,000
SALTS (III) Cayman Islands Corp.
10,000 5.71%, 12/18/98 10,000
25,000 5.85%, 1/25/99 25,000
Silver Tower U.S. Funding
14,000 5.51%, 11/18/98 13,897
5,000 5.50%, 12/22/98 4,937
9,275 5.05%, 3/18/99 9,056
Thames Asset Global Securitization
8,483 5.60%, 10/9/98 8,472
27,925 5.59%, 10/13/98 27,873
7,451 5.37%, 12/4/98 7,380
20,000 Triangle Funding,
5.35%, 12/29/98 20,000
Trident Capital Finance, Inc.
25,000 5.50%, 12/8/98 24,740
23,950 5.47%, 12/11/98 23,691
12,500 5.30%, 12/15/98 12,362
7,550 Twin Towers, Inc.,
5.60%, 11/2/98 7,512
6,502 Variable FundingCapital Corp.,
5.60%, 10/2/98 6,501
20,000 Windmill Funding Corp.,
5.57%, 10/9/98 19,975
----------
960,015
----------
BEVERAGES - NON-ALCOHOLIC - 2.3%
Coca Cola Enterprises
20,000 5.51%, 10/8/98 19,792
25,000 5.52%, 10/8/98 24,973
9,000 5.52%, 11/12/98 8,942
20,000 5.50%, 12/8/98 19,979
16,000 5.51%, 12/10/98 15,829
----------
89,515
----------
BROKERAGE SERVICES - 3.6%
52,000 J.P. Morgan and Co.,
5.75%, 3/10/99 52,001
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
BROKERAGE SERVICES - 3.6% (CONT'D.)
$50,000 Lehman Brothers Holdings,
5.50%, 10/29/98 $ 49,786
35,735 Morgan Stanley Dean Witter Discover Co.,
5.30%, 11/13/98 35,509
----------
137,296
----------
COMMERCIAL BANKS - 1.0%
39,500 Bankers Trust Co. New York,
5.48%, 1/22/99 38,821
----------
ELECTRONIC & OTHER ELECTRICAL
COMPONENTS - 2.0%
1,526 GE Engine Receivables 1995-1 Trust,
5.58%, 10/15/98 1,526
4,673 GE Engine Receivables 1996-1 Trust,
5.58%, 10/15/98 4,673
General Electric Capital Corp.
1,250 5.52%, 10/21/98 1,246
13,000 5.50%, 12/24/98 12,833
23,000 5.48%, 2/26/99 22,482
35,000 Sony Capital Corp.,
5.60%, 10/21/98 34,891
----------
77,651
----------
FOREIGN DEPOSITORY INSTITUTIONS - 6.3%
Abbey National North America
28,000 5.35%, 12/8/98 27,717
59,000 5.45%, 12/22/98 58,267
37,000 Credit Communal de Belgique,
5.47%, 12/18/98 36,562
45,000 Generale Bank, Inc.,
5.49%, 12/1/98 44,581
25,000 Societe Generale North America, Inc.,
5.475%, 12/21/98 24,692
Spintab AB/Swedmortgage
29,000 5.52%, 11/9/98 28,827
6,000 5.55%, 12/28/98 5,918
15,000 Svenska Handelsbanken, Inc.,
5.47%, 12/17/98 14,825
----------
241,389
----------
INSURANCE SERVICES - 1.7%
Aetna Service Co.
12,000 5.58%, 10/9/98 11,985
25,000 5.55%, 10/20/98 24,927
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
INSURANCE SERVICES - 1.7% (CONT'D.)
$ 5,432 AON Corp.,
5.56%, 10/13/98 $ 5,422
Torchmark, Inc.
5,000 5.60%, 10/15/98 4,989
7,000 5.62%, 10/21/98 6,978
7,500 5.65%, 10/23/98 7,474
3,797 5.58%, 11/10/98 3,773
----------
65,548
----------
MACHINES & COMPUTER EQUIPMENT - 3.6%
BTR Finance, Inc.
4,300 5.51%, 10/13/98 4,292
4,500 5.49%, 11/13/98 4,470
22,480 5.50%, 11/13/98 22,332
24,000 5.50%, 12/7/98 23,755
36,000 5.45%, 2/18/99 35,237
24,500 5.34%, 2/23/99 23,973
12,500 5.34%, 2/25/99 12,227
10,000 5.25%, 3/8/99 9,770
----------
136,056
----------
MEASURING, ANALYZING &
CONTROL INSTRUMENTS - 1.3%
Johnson Controls
7,500 5.60%, 10/28/98 7,468
22,000 5.57%, 11/18/98 21,837
17,500 Xerox, 5.32%, 3/5/99 17,099
----------
46,404
----------
NONDEPOSITORY BUSINESS
CREDIT INSTITUTIONS - 5.1%
1,000 American Express, 5.73%, 7/12/99 1,000
1,000 Apreco, Inc., 5.50%, 12/15/98 989
Beta Finance Corp.
16,000 5.10%, 3/10/99 15,637
6,000 5.10%, 3/24/99 5,852
Cendant Resident Mortgage Trust
4,000 5.59%, 10/14/98 3,992
12,500 5.43%, 12/11/98 12,366
25,000 Countrywide Home Loans,
5.70%, 8/4/98 24,990
15,000 CSW Credit, Inc.,
5.37%, 12/17/98 14,828
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
NONDEPOSITORY BUSINESS
CREDIT INSTITUTIONS - 5.1% (CONT'D.)
Finova Capital Corp.
$13,000 5.53%, 10/20/98 $ 12,962
12,000 5.52%, 10/22/98 11,961
50,000 5.40%, 1/14/99 49,212
17,500 5.40%, 1/19/98 17,211
10,000 5.18%, 3/12/99 9,767
13,000 Sunkyong America, Inc.,
5.50%, 10/28/98 12,946
----------
193,713
----------
PETROLEUM REFINING &
RELATED INDUSTRIES - 0.3%
12,500 Koch Industries, 5.43%, 12/4/98 12,379
----------
TRANSPORTATION PARTS AND EQUIPMENT - 2.0%
5,000 Chrysler Financial Corp.,
6.28%, 6/22/99 5,039
General Motors Acceptance Corp.
15,000 5.55%, 10/8/98 14,984
12,000 5.49%, 10/14/98 11,976
15,000 5.50%, 12/2/98 14,858
15,000 5.50%, 12/3/98 14,856
15,000 5.50%, 12/8/98 14,844
----------
76,557
----------
WHOLESALE TRADE - DURABLE GOODS - 0.3%
10,000 Sinochem American Holdings, Inc.,
5.35%, 11/5/98 9,948
----------
Total Commercial Paper
(cost $2,085,292) 2,085,292
----------
CORPORATE BONDS - 2.2%
Beta Finance Corp.
10,000 6.00%, 10/27/98 10,000
40,000 5.56%, 2/4/99 40,000
5,000 Penney (J.C.) & Co., Inc.,
5.95%, 11/15/98 4,996
27,000 Restructured Assets Certificates with
Enhanced Returns, 5.75%, 11/28/98 27,000
750 USL Capital Corp.,
5.93%, 10/19/98 750
----------
Total Corporate Bonds
(cost $131,305) 82,746
----------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
EURODOLLAR TIME DEPOSITS - 19.8%
$100,000 Bank of Montreal,
5.75%, 10/1/98 $ 100,000
25,000 Banque Nationale de Paris, Grand
Cayman, 5.75%, 10/1/98 25,000
70,000 Campagnie Financiere de CIC, Grand
Cayman, 5.84%, 10/1/98 70,000
70,000 Credit Commerical de France,
6.00%, 10/1/98 70,000
70,000 Erste Bank, Grand Cayman,
6.25%, 10/1/98 70,000
120,000 KBC Bank Brussels, Belguim,
5.844%, 10/1/98 120,000
140,000 Key Bank N.A., Grand Cayman,
6.00%, 10/1/98 140,000
91,512 National Australia Bank,
6.0%, 10/1/98 91,512
70,000 Skandinaviska Enkildahbanken, Grand
Cayman, 5.875%, 10/1/98 70,000
----------
Total Eurodollar Time Deposits
(cost $756,512) 756,512
----------
GUARANTEED INVESTMENT
CONTRACTS - 2.8%
50,000 General American Life Insurance Co.,
5.75%, 10/23/98 50,000
20,000 Integrity Life Insurance Co.,
6.11%, 10/1/98 20,000
Transamerica Life Insurance and
Annuity Co.
20,000 5.66%, 10/1/98 20,000
15,000 5.65%, 3/19/99 15,000
----------
Total Guaranteed Investment Contracts
(cost $105,000) 105,000
----------
MUNICIPAL INVESTMENTS - 9.5%
11,760 Communaute Urbaine de Lille,
5.89%, 2/15/99 11,760
4,900 Courtyards of Mackinaw LLC,
5.60%, 10/1/98 4,900
5,000 Elsmere Kentucky Mubea, Inc.,
5.67%, 10/1/98 5,000
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 9.5% (CONT.D)
$13,800 Flint, Michigan Hospital Building
Authority, 5.70%, 10/1/98 $ 13,800
9,000 Hydro-Quebec Corp., Province of
Quebec, 5.76%, 1/15/99 9,000
15,020 Integris Health, Inc., 5.73%, 10/7/98 15,020
3,700 KBL Capital Fund,
5.49%, 10/1/98 3,700
30,000 Los Angeles County, California
Pension Obligation, 5.58%,12/31/98 30,000
4,500 Malone College Project,
5.60%, 10/1/98 4,500
4,431 Municipal Electric Authority of Georgia,
5.53%, 11/2/98 4,431
12,500 New Jersey Economic Development
Authority, 5.64%, 10/7/98 12,500
18,600 Physicians Plus Medical Group,
5.70%, 10/1/98 18,600
20,000 Public Service Electric, 5.85%, 11/1/98 20,000
5,300 Schreiber Industrial Park-North Co.,
Virginia, 5.60%, 10/1/98 5,300
9,360 Seattle, Washington Limited Tax G.O.,
Series C, 5.45%, 10/7/98 9,360
9,600 Stanislaus County, California
Pension Obligation, 5.74%, 2/15/99 9,690
4,400 Texas Municipal Power Agency,
5.65%, 10/14/98 4,400
10,215 Texas State-Veterans Land Bond,
5.76%, 12/1/98 10,215
12,745 Virginia HDA Multi-Family Housing
Bond, 5.74%, 11/1/98 12,745
Virginia State HDA Multi-Family
Housing Bond, Series A
152,136 5.50%, 10/1/98 152,138
4,950 5.65%, 1/1/99 4,950
3,100 Waukesha, Wisconsin Health
Systems, Inc., 5.70%, 10/1/98 3,100
----------
Total Municipal Investments
(cost $326,549) 365,109
----------
Total Investments - 98.4%
(cost $3,756,582) 3,756,582
Other Assets less Liabilities - 1.6% 61,985
----------
NET ASSETS - 100.0% $3,818,567
==========
See Notes to the Financial Statements.
<PAGE>
- ---------------------
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
U.S. GOVERNMENT MONEY MARKET FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES - 76.7%
FANNIE MAE - 3.7%
$ 6,000 FNMA Discount Note,
5.576%, 10/1/98 $ 6,000
FNMA MTN
6,000 5.38%, 2/9/99 5,997
4,000 5.49%, 8/3/99 3,997
----------
15,994
----------
FEDERAL FARM CREDIT BANK - 0.1%
340 FFCB MTN,
5.70%, 12/1/98 340
----------
FEDERAL HOME LOAN BANK - 64.6%
FHLB Bonds
2,595 5.69%, 10/2/98 2,595
3,800 5.70%, 10/23/98 3,800
3,400 5.792%, 10/23/98 3,400
3,200 5.775%, 10/30/98 3,200
5,400 5.50%, 3/19/99 5,398
5,550 5.50%, 3/26/99 5,547
4,000 5.61%, 4/8/99 3,998
8,000 5.63%, 5/5/99 7,995
4,000 5.527%, 6/10/99 3,996
8,000 5.54%, 7/13/99 7,997
4,000 5.536%, 7/15/99 3,997
4,000 5.544%, 8/13/99 3,998
220,992 FHLB Discount Note,
5.475%, 10/1/98 220,992
----------
276,913
----------
OVERSEAS PRIVATE INVESTMENT
CORP. - 4.2%
18,000 FRN, 5.22%, 10/7/98 18,000
----------
SLM HOLDING CORP. - 4.1%
SLMA MTN
4,000 5.72%, 11/20/98 4,000
5,500 5.74%, 12/17/98 5,499
8,000 5.40%, 2/10/99 7,997
----------
17,496
----------
Total U.S. Government Agencies
(cost $328,743) 328,743
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 23.3%
$100,000 Warburg Dillon Read, Inc., dated 9/30/98,
repurchase price $100,015 (Colld. by U.S.
Government Securities),
5.50%, 10/1/98 $ 100,000
----------
Total Repurchase Agreements
(cost $100,000) 100,000
----------
Total Investments - 100.0%
(cost $428,743) 428,743
Liabilities less Other Assets - (0.0)% (66)
----------
NET ASSETS - 100.0% $428,677
==========
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
- --------------------
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
U.S. GOVERNMENT SELECT MONEY MARKET FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES - 100.2%
FEDERAL FARM CREDIT BANK - 0.8%
FFCB Discount Notes
$ 2,369 5.40%, 10/22/98 $ 2,362
230 5.70%, 12/1/98 230
----------
2,592
----------
FEDERAL HOME LOAN BANK - 97.5%
FHLB Bonds
400 5.70%, 10/23/98 400
9,000 5.63%, 5/5/99 8,994
FHLB Discount Notes
139,032 5.40%, 10/1/98 139,032
1,440 5.69%, 10/2/98 1,440
23,800 5.39%, 10/21/98 23,729
2,400 5.70%, 10/23/98 2,400
2,200 5.792%, 10/23/98 2,200
12,625 5.40%, 10/30/98 12,570
2,200 5.775%, 10/30/98 2,200
31,500 5.40%, 11/18/98 31,273
4,500 5.40%, 11/20/98 4,466
49,409 5.345%, 11/25/98 49,006
6,000 5.25%, 11/27/98 5,950
4,000 5.435%, 2/2/99 3,998
5,200 5.52%, 3/23/99 5,198
3,000 5.50%, 3/26/99 2,999
6,000 5.61%, 4/8/99 5,997
6,000 5.527%, 6/10/99 5,993
6,000 5.536%, 7/15/99 5,996
----------
313,841
----------
SLM HOLDING CORP. - 1.9%
SLMA MTN
2,500 5.72%, 11/20/98 2,500
3,500 5.74%, 12/17/98 3,499
----------
5,999
----------
Total U.S. Government Agencies
(cost $322,432) 322,432
----------
NUMBER
OF SHARES VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
OTHER - 0.0%
1 Dreyfus Prime Money Market Fund
(cost $1) $ 1
----------
Total Investments - 100.2%
(cost $322,433) 322,433
Liabilities less Other Assets - (0.2)% (510)
----------
NET ASSETS - 100.0% $321,923
==========
See Notes to the Financial Statements.
<PAGE>
- --------------------
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 99.5%
ALABAMA - 0.7%
$ 1,800 Ashland City Industrial Development
Board IDR (AMT), Russell Corp. Project
(SunTrust Banks, Inc. LOC),
4.15%, 10/7/98 $ 1,800
2,575 Columbia City Industrial Development
Board IDR (AMT), Russell Corp. Project
(SunTrust Banks, Inc. LOC),
4.15%, 10/7/98 2,575
2,575 Geneva County Industrial Development
Board IDR (AMT), Russell Corp. Project
(SunTrust Banks, Inc. LOC),
4.15%, 10/7/98 2,575
700 Greenville City IDR VRDN, Series 1992,
Allied-Signal Project (FMC Corp. Gtd.),
3.80%, 10/7/98 700
3,500 McIntosh City Industrial Development
Board Series 1998 E (AMT), Ciba Specialty
Chemical Corp., 4.35%, 10/1/98 3,500
2,500 Selma City IDR VRDN, Series 1996 A,
Meadowcraft, Inc. Project (NationsBank
LOC), 4.15%, 10/7/98 2,500
----------
13,650
----------
ALASKA - 0.3%
7,025 Alaska Housing Finance Corp.,
Series PT-37, Merrill P-Floats (Banque
Nationale Paris LOC), 3.97%, 10/1/98 7,025
----------
ARIZONA - 1.3%
1,325 Apache County IDR VRDN (AMT),
Imperial Components, Inc. Project (Harris
Trust & Savings Bank LOC), 4.05%, 10/7/98 1,325
5,800 Cochise County PCR VRDN Solid Waste,
Series 1994 A (AMT), Arizona Electric Project,
(National Rural Utility Cooperative Finance
Corp. Gtd.), 3.55%, 3/1/99 5,800
2,235 Maricopa County PCR VRDN, Series A,
El Paso Electric Project (Westpac Banking
Corp., LOC), 3.60%, 10/7/98 2,235
15,420 Scottsdale City Preserve Authority Excise
Tax Revenue, Morgan Stanley Floating
Certificates Series 17 (FGIC Insured),
4.17%, 10/7/98 15,420
----------
24,780
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
ARKANSAS - 0.3%
$ 3,250 Lowell City IDR VRDN, Series 1996
(AMT), Little Rock Newspapers, Inc.
Project (Bank of New York LOC),
3.80%, 10/7/98 $ 3,250
2,100 West Memphis City IDR VRDN (AMT),
Proform Co. LLC Project (First Bank LOC),
4.25%, 10/7/98 2,100
----------
5,350
----------
CALIFORNIA - 1.0%
California State G.O. Bond
(FGIC Insured)
200 Series CR-52, 3.75%, 10/7/98 200
800 Series 5027 C, 3.75%, 10/7/98 800
7,460 California State HFA Home Mortgage
Revenue FRN, Series E (AMT),
3.55%, 3/12/99 7,460
7,500 Irvine Ranch County Consolidated
Water District VRDN, Series 1993 B,
Districts 2, 102, 103, 106, 203 & 206
(Morgan Guaranty Trust Co. LOC),
3.80%, 10/1/98 7,500
2,746 Los Angeles City IDR VRDN, Series BTP-129
(Colld. by U.S. Government Securities),
3.90%, 10/8/98 2,746
----------
18,706
----------
COLORADO - 1.8%
Arapahoe County Capital Improvements
TOB, Project E-470 (Colld. by U.S.
Government Securities)
10,000 Series E BTP-254, 4.15%, 10/7/98 10,000
15,038 Series E BTP-255, 4.15%, 10/7/98 15,038
4,500 Colorado HFA VRDN (AMT), Metal Sales
Manufacturing Corp. Project (Star Bank
LOC), 4.20%, 10/1/98 4,500
4,800 Denver City and County, Series 1997 A
(AMT), Airport Systems Sub Revenue
(Bayerische Landesbank LOC),
3.55%, 10/30/98 4,800
1,500 Pitkin County IDR, Series1994 B (AMT),
Aspen Skiing Project (First National Bank
Chicago LOC), 4.25%, 10/1/98 1,500
----------
35,838
----------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
- --------------------
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CONNECTICUT - 2.9%
Connecticut State Reset Option Certificates
$12,080 Series 3, 4.17%, 10/7/98 $ 12,080
45,610 Series 4, 4.17%, 10/7/98 45,610
----------
57,690
----------
DELAWARE - 0.4%
3,200 Delaware State Economic Development
Authority IDR VRDN, Series 1998 (AMT),
C&C Family Limited Partnership
(PNC Bank LOC), 4.20%, 10/7/98 3,200
1,325 Delaware State Economic Development
Authority PCR VRDN, Allied-Signal Corp.
Project (FMC Corp. Gtd.), 3.80%, 10/7/98 1,325
2,700 Delaware State Economic Development
Authority Waste Disposal, Series 1996 A
(AMT), Ciba-Geigy Corp. Project (Union
Bank of Switzerland), 4.30%, 10/1/98 2,700
----------
7,225
----------
DISTRICT OF COLUMBIA - 2.5%
29,500 District of Columbia Metro Airport
Authority (AMT), Passenger Facility Flexible
Term Notes (NationsBank North Carolina
LOC), 3.70%, 10/9/98 29,500
6,745 District of Columbia Metro Airport
Authority Revenue & Refundings Bonds,
(AMT), BTP-312, 4.16%, 10/7/98 6,745
6,675 District of Columbia Metro Airport
Authority Revenue, Series B (AMT),
BTP-311, 4.16%, 10/7/98 6,675
6,600 District of Columbia Water & Sewer, Series
1998, Citibank Eagle Trust Series 985201
(FSA Insured), 4.07%, 10/7/98 6,600
----------
49,520
----------
FLORIDA - 2.0%
1,900 Boward County HFA VRDN, Series 1984,
Welleby Apartment Projects (Bank of
America LOC), 3.70%, 10/7/98 1,900
4,385 Duval County HFA Mortgage Revenue
VRDN, Series 1996-3A (AMT), Clipper Trust
Certificate, 4.17%, 10/7/98 4,385
7,300 Florida State Board of Education Capital
Outlay, Series A, Citicorp Eagle Trust,
4.07%, 10/7/98 7,300
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
FLORIDA - 2.0% (CONT'D.)
$ 4,000 Florida State Board of Education Capital
Outlay, Series 1998-9, ABN-AMRO
Minitops (FSA Insured), 3.79%, 10/7/98 $ 4,000
6,595 Florida State Board of Education VRDN,
Series 1991-B, BTP-233, 3.90%, 10/8/98 6,595
11,400 Florida State Board of Education VRDN,
Series 1994 E, Eagle Trust, 4.12%, 10/7/98 11,400
4,400 Florida State Housing Finance Agency,
Series 2 (AMT) (MBIA Insured),
3.90%, 10/7/98 4,400
----------
39,980
----------
GEORGIA - 3.0%
8,400 Atlanta City Metro Rapid Transit Authority
Sales Tax, Series A, Muni Trust Certificates
(MBIA Insured), 4.17%, 10/7/98 8,400
3,000 Clayton County Housing Authority
Revenue VRDN (AMT), Williamsburg South
Apartments Project (PNC Bank LOC),
4.15%, 10/7/98 3,000
5,300 Clayton County IDA IDR VRDN (AMT),
Blue Circle Aggregates, Inc. Project
(Denmark Danske Bank LOC),
4.10%, 10/7/98 5,300
5,200 DeKalb County Housing Authority
Revenue VRDN, Series 1995 (AMT), Cedar
Creek Apartment Project (General Electric
Capital Corp. LOC), 4.15%, 10/7/98 5,200
2,065 Forsyth County IDA VRDN, Series 1998
(AMT), World Access, Inc. Project,
4.15%, 10/7/98 2,065
Georgia HFA Conventional Mortgage TOB
(AMT), Various Programs (Bank of Austria LOC)
3,200 Series 1990 C, 3.85%, 12/1/98 3,200
1,125 Series 1990 D, 3.80%, 12/1/98 1,125
16,000 Georgia State G.O. Unlimited, Series B,
4.35%, 10/1/98 16,000
2,000 Gwinett County IDR, Series 1998 (AMT),
Network Publications, Inc. (NationsBank
LOC), 4.10%, 10/1/98 2,000
4,150 Henry County Development Authority,
Series 1997 (AMT), Atlas Roofing Corp.
Project (SunTrust Banks, Inc. LOC),
4.15%, 10/7/98 4,150
1,750 Richmond County Board of Education
Unlimited Tax G.O. (State Aid Withholding
Insured), 4.00%, 9/1/99 1,758
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
GEORGIA - 3.0% (CONT'D.)
$ 5,000 Savannah City Economic Development
Authority, Series 1997 (AMT), Kaolin
Terminals Project (NationsBank LOC),
4.10%, 10/7/98 $ 5,000
2,000 Whitfield County IDA, Series 1998 (AMT),
H&S Whitting, Inc. Project (NationsBank
LOC), 4.10%, 10/7/98 2,000
----------
59,198
----------
HAWAII - 2.4%
5,000 Hawaii State Department of Budget and
Finance, Series A (AMT), Hawaiian Electric
Co. Project (MBIA Insured),
4.15%, 10/7/98 5,000
8,000 Hawaii State Department of Budget and
Finance, Kaiser Permanente Project,
3.80%, 3/1/99 8,000
6,375 Hawaii State G.O., Series CS BTP-302
(MBIA Insured), 4.15%, 10/7/98 6,375
9,990 Hawaii State HFA SFM, Series A P-Floats
PT-1049 (AMT), 4.15%, 10/7/98 9,990
7,000 Hawaii State, Series 5, Reset Option
Certificates (FGIC Insured),
4.17%, 10/7/98 7,000
10,000 Honolulu City and County G.O. Bonds,
Series 1997 C (Citibank Trust LOC),
4.22%, 10/7/98 10,000
----------
46,365
----------
ILLINOIS - 12.0%
3,500 Arlington Heights IDR VRDN, Series 1997
(AMT), 3E Graphics and Printing Project,
(Harris Trust & Savings LOC),
4.05%, 10/7/98 3,500
9,580 Aurora City Rental Housing Revenue Bonds,
Series PA-328 Fox Valley Project (Merrill
Lynch Gtd.), 4.19%, 10/7/98 9,580
2,215 Bedford Park City IDR VRDN, Series 1997,
Cintas Sales Corp. Project (PNC Bank Ohio
N.A. LOC), 4.05%, 10/7/98 2,215
11,320 Chicago City Building Acquisition
Certificates, Series 1997 SSP-7 (FSA
Insured), 4.02%, 10/7/98 11,320
2,655 Chicago City IDR, Series B (AMT),
Guernsey Bel, Inc. Project (Harris Trust
& Savings Bank LOC), 4.05%, 10/7/98 2,655
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
ILLINOIS - 12.0% (CONT'D.)
$14,495 Chicago City Lakefront Millennium
Parking, Series 1998, Citicorp Eagle Trust
(MBIA Insured), 4.07%, 10/7/98 $ 14,495
1,300 Chicago City 2nd Lien VRDN, Series
1998 B (AMT), Midway Airport
(MBIA Insured), 4.30%, 10/1/98 1,300
5,500 Chicago City Midway Airport Revenue
VRDN, Series 1995 (AMT), American Trans
Air, Inc. Project (National Bank of Detroit
LOC), 4.05%, 10/7/98 5,500
2,400 Chicago City O'Hare International Airport
Revenue VRDN, Series 1988 A (AMT)
(Bayerische Landesbank LOC),
3.60%, 10/7/98 2,400
10,000 Chicago City Project and Refunding Board,
Series 1998 M, BA Partnerships
(FGIC Insured), 3.40%, 8/4/99 10,000
9,495 Chicago City Public Building Commission,
Series A PA-155, P-Floats (MBIA Insured),
3.75%, 1/14/99 9,495
20,700 Chicago City G.O. Bonds, Series 1998,
Citicorp Eagle Trust (FSA Insured),
4.07%, 10/7/98 20,700
3,885 Chicago City Sales Tax Revenue, Series
1998 PCR-8 (FGIC Insured),
4.12%, 10/7/98 3,885
1,730 Des Plaines City IDR VRDN, Series 1996
(AMT), Finzer Roller, Inc. Project (Harris
Trust & Savings Bank LOC),
4.05%, 10/7/98 1,730
9,400 Dupage County Water Commission Water
Revenue, 4.09%, 10/7/98 9,400
3,650 Frankfort City IDR, Series 1996 (AMT),
Bimba Manufacturing Co. Project (Harris
Trust & Savings Bank LOC),
4.05%, 10/7/98 3,650
5,000 Fulton County IDR VRDN, Series 1998
(AMT), Drives, Inc. Project (Harris Trust
& Saving Bank), 4.05%, 10/7/98 5,000
1,660 Illinois Development Finance Authority
IDR VRDN (AMT), Bimba Manufacturing
Co. Project (Harris Trust & Savings Bank
LOC), 4.05%, 10/7/98 1,660
5,950 Illinois Development Finance Authority IDR
VRDN, Enterprise Office Campus (FNMA
LOC), 3.75%, 12/1/98 5,950
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
ILLINOIS - 12.0% (CONT'D.)
$ 2,265 Illinois Development Finance Authority
IDR VRDN, Series 1997 A (AMT), Randall
Metals Corp. Project (LaSalle National
Bank LOC), 4.25%, 10/7/98 $ 2,265
5,500 Illinois Development Finance Authority,
Series 1998 (AMT), Flying Food Fare, Inc.
(Bank of America LOC), 4.10%, 10/7/98 5,500
4,100 Illinois Development Finance Authority
VRDN (AMT), Series 1997 (AMT), Ciccone
Food Products Project (Harris Trust &
Savings Bank LOC), 4.05%, 10/7/98 4,100
1,400 Illinois Development Finance Authority
VRDN, Series 1990 (AMT), Solar Press, Inc.
Project (First National Bank of Chicago
LOC), 3.80%, 10/7/98 1,400
5,000 Illinois Educational Facility Authority,
University of Chicago, 4.07%, 10/7/98 5,000
2,000 Illinois Health Facility Authority, Series
1994 Streetville Corp. (First National Bank
of Chicago LOC), 3.65%, 10/7/98 2,000
10,000 Illinois State G.O. TOB, Series 1998 PCR-9
(FSA Insured), 4.12%, 10/7/98 10,000
3,000 Illinois State G.O. Unlimited Bond,
5.60%, 6/1/99 3,039
7,500 Ladd Village IDR VRDN, Series 1996 (AMT),
O'Neal Metals, Inc. Project (NationsBank
LOC), 4.15%, 10/7/98 7,500
15,806 Metropolitan Pier & Exposition Authority,
Dedicated Sales Tax Revenue BTP-230
(Colld. by U.S. Government Securities),
4.05%, 10/7/98 15,806
3,560 Metropolitan Pier & Exposition Authority,
Series 1996 A, McCormick Place Project
(AMBAC Insured), 3.80%, 10/7/98 3,560
2,950 Niles Village IDR VRDN, Series 1996
(AMT), Lewis Spring and Manufacturing
Co. Project (Harris Trust & Savings Bank
LOC), 4.05%, 10/7/98 2,950
7,900 Palos Hill County Multifamily Housing,
Series 1998 (AMT), Green Oaks Project,
(LaSalle National Bank LOC),
3.75%, 10/7/98 7,900
9,700 Pooled Puttable Float Option (AMT),
Series PT6, Various State and Housing
Agencies, 4.07%, 7/8/99 9,700
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
ILLINOIS - 12.0% (CONT'D.)
$ 3,000 Rockford City IDR, Series 1998 (AMT),
Ring Can Corp. Project (SunTrust Bank
LOC), 4.15%, 10/7/98 $ 3,000
2,375 Romeoville City IDR, Series 1997 (AMT),
Metropolitan Industries, Inc. Project
(Harris Trust & Savings Bank LOC),
4.05%, 10/7/98 2,375
11,200 Schaumburg City Multifamily Housing,
Series 1989 Treehouse II Apartments
Project (Barclays Bank LOC),
4.10%, 10/7/98 11,200
6,000 Savanna City IDR VRDN, Series 1994
(AMT), Metform Corp. Project (First
National Bank of Chicago LOC),
3.80%, 10/7/98 6,000
5,800 St. Clair County IDR (AMT), Stellar
Manufacturing Project (NationsBank LOC),
4.15%, 10/7/98 5,800
2,100 Will County Solid Waste, Series 1997
(AMT) (BASF Corp. Gtd.),
4.35%, 10/1/98 2,100
----------
235,630
----------
INDIANA - 2.2%
2,790 Anderson City Economic Development
VRDN, Series 1996 (AMT), Gateway Village
Project (FHLB LOC), 4.10%, 10/7/98 2,790
1,500 Greencastle City IDR VRDN, Series 1996
(AMT), Crown Equipment Corp. Project
(Mellon Bank LOC), 4.20%, 10/7/98 1,500
2,840 Hammond City Economic Development
VRDN, Series 1996 A (AMT), Annex at
Douglas Point Project (FHLB LOC),
4.10%, 10/7/98 2,840
8,000 Indiana Bond Bank, Advanced Funding
Program, Series A-2, 4.00%, 1/20/99 8,009
Indiana Development Finance Authority
IDR VRDN (AMT), Red Gold, Inc. Project
(Harris Trust & Savings Bank LOC)
4,600 Series 1994 A, 4.05%, 10/7/98 4,600
2,900 Series 1994 B, 4.05%, 10/7/98 2,900
12,000 Indiana Transportation Authority
Highway Revenue, Citicorp Eagle Trust,
3.65%, 11/2/98 12,000
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
INDIANA - 2.2% (CONT'D.)
$5,000 Indianapolis City Local Public
Improvement Bond, Series B Bank Notes,
4.25%, 1/11/99 $ 5,008
3,000 Jasper County PCR VRDN, Series 1998 B,
Northern Indiana Public Service Project,
3.55%, 11/12/98 3,000
----------
42,647
----------
IOWA - 1.1%
7,580 Cedar Rapids City G.O. Unlimited Bond,
PA-251, 4.14%, 10/7/98 7,580
2,240 Iowa Finance Authority, Series A, SFM
Backed Program (GNMA/FNMA Insured),
3.65%, 2/24/99 2,240
3,475 Iowa Finance Authority, Series B (AMT),
SFM Backed Program (GNMA/FNMA
Insured), 3.70%, 2/24/99 3,475
5,300 Iowa Finance Authority Waste Disposal
Revenue VRDN (AMT), Cedar River Paper
Co. Project, Series 1997 A, (Bank of Nova
Scotia LOC), 4.35%, 10/1/98 5,300
1,200 Iowa Finance Authority Waste Disposal
Revenue VRDN (AMT), Cedar River Paper
Co. Project, Series 1998 A (United Bank of
Switzerland LOC), 4.35%, 10/1/98 1,200
1,200 Iowa Student Loan Liquidity Corp., Series C
(AMT) (AMBAC Insured), 6.30%, 3/1/99 1,214
----------
21,009
----------
KANSAS - 1.1%
6,200 Burlington City Environment Improvement,
Series B, Kansas City Power & Light Co.,
3.70%, 10/7/98 6,200
8,500 Douglas County Temporary Notes, Series 3,
3.75%, 8/1/99 8,501
7,645 Kansas City Collaterized Mortgage,
Series 1998 B (AMT) (GNMA Colld.),
3.90%, 10/7/98 7,645
----------
22,346
----------
KENTUCKY - 2.4%
5,701 Carroll County Solid Waste Disposal
Revenue VRDN (AMT), North American
Stainless Project (Banco Bilbao Vizcaya
LOC), 4.50%, 10/7/98 5,701
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
KENTUCKY - 2.4% (CONT'D.)
$ 3,030 Clark County Industrial Building IDR
VRDN, Series 1996 (AMT), Bluegrass Art
Cast Project (Bank One LOC),
4.15%, 10/7/98 $ 3,030
Daviess County Waste Disposal Facility
IDR VRDN (AMT), Scott Paper Co. Project
(Kimberly-Clark Corp. Gtd.)
6,500 Series 1993 B, 4.25%, 10/1/98 6,500
12,500 Series 1994 A, 4.25%, 10/1/98 12,500
Louisville and Jefferson Counties VRDN
(AMT), Regional Airport Authority System
(National City Bank of Louisville LOC)
7,000 Series 1997 A-1, 4.15%, 10/7/98 7,000
10,000 Series 1997 A-1, 4.15%, 10/7/98 10,000
2,500 Mayfield City Lease Revenue VRDN,
Series 1996, Kentucky League of Cities
Pooled Project (PNC Bank LOC),
3.70%, 10/7/98 2,500
----------
47,231
----------
LOUISIANA - 0.4%
Ascension Parish County VRDN, (AMT),
BASF Corp. Project (BASF Corp. Gtd.)
2,700 Series 1995, 4.35%, 10/1/98 2,700
2,000 Series 1997, 4.35%, 10/1/98 2,000
4,000 South Louisiana Port Commission, Series
1997 (AMT), Holnam, Inc. Project (ABN-
AMRO Holding LOC), 3.60%, 10/7/98 4,000
----------
8,700
----------
MAINE - 0.8%
2,000 Fort Fairfield County Revenue Bond (AMT),
Atlantic Custom Processors (PNC Bank
LOC), 4.20%, 10/7/98 2,000
5,000 Maine Public Utility Finance Bank
Revenue VRDN, Series 1996 (AMT), Maine
Public Service Co. Project (Bank of New
York LOC), 3.80%, 10/7/98 5,000
8,900 Maine State Housing Authority (AMT),
Multifamily Development, Park Village
Apartment Project (GE Capital Corp.
LOC), 4.13%, 10/7/98 8,900
----------
15,900
----------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MARYLAND - 0.5%
$ 1,100 Baltimore City Economic Development
VRDN, Series 1985, Mt. Washington
Pediatric Hospital, Inc. (Mellon Bank LOC),
3.95%, 10/7/98 $ 1,100
3,360 Cecil County Economic Development
VRDN (AMT), Steel Techs Inc. Facility
(PNC Bank LOC), 4.20%, 10/7/98 3,360
10 Maryland State Community Development
Administration, Series PT-12, Merrill
P-Floats (Commerzbank A.G. LOC),
3.97%, 10/1/98 10
2,890 Maryland State Economic Development
Corp. VRDN (AMT), Unsite Design, Inc.
(Mellon Bank N.A. LOC), 4.00%, 10/7/98 2,890
3,000 Maryland State IDA, Townsend Culinary,
Inc. Project (SunTrust Banks, Inc. LOC),
4.15%, 10/7/98 3,000
----------
10,360
----------
MASSACHUSETTS - 2.3%
9,000 Gloucester City BAN, 4.00%, 8/5/99 9,025
22,920 Massachusetts Bay Transportation Authority,
Series C, Muni Floating Rate Trust
Certificates, 4.14%, 10/7/98 22,920
8,800 Massachusetts State G.O. Floating Rate
Trust Certificate, Series 1998-41,
4.17%, 10/7/98 8,800
2,160 Massachusetts State HFA VRDN, Series
1996-5A (AMT), Clipper Trust Certificate
(AMBAC Insured), 4.17%, 10/7/98 2,160
2,200 Massachusetts State HFA VRDN, Series
PA-132 (AMT), Harbor Point Project
(AMBAC Insured), 4.15%, 10/7/98 2,200
----------
45,105
----------
MICHIGAN - 3.9%
20,000 Detroit City School District, Series 1998,
State School Aide Notes, 4.50%, 7/1/99 20,123
13,035 Michigan State HDA, Series D (AMT),
BTP-197, 4.31%, 10/7/98 13,035
20,700 Michigan State Trunk Line Bonds, Series
1998 A, Floating Rate Trust Certificates,
4.17%, 10/7/98 20,700
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MICHIGAN - 3.9% (CONT'D.)
$3,000 Michigan Strategic Fund Ltd. (AMT),
Dirksen Screw Co. Project (National Bank
of Detroit LOC), 4.15%, 10/7/98 $ 3,000
5,170 Michigan Strategic Fund Ltd. VRDN, Series
1998 (AMT), GT USA LLC Project
(Comerica Bank LOC), 4.15%, 10/7/98 5,170
5,840 Michigan Strategic Fund Ltd. VRDN, Series
1992 (AMT), Dow Chemical Co. Project
(Dow Chemical Gtd.), 4.30%, 10/1/98 5,840
2,160 Michigan Strategic Fund Ltd. VRDN (AMT),
Kruger Commodities, Inc. Project (Harris
Trust & Savings Bank LOC), 4.05%, 10/7/98 2,160
6,500 Oakland County Economic Development
Corp., Series 1998 (AMT), Richard and Tool
Die Corp. (Comercia Bank LOC),
4.20%, 10/7/98 6,500
----------
76,528
----------
MINNESOTA - 1.0%
9,005 Eden Prairie Multifamily Housing, Park at
City West Project (Barclays Bank LOC),
4.10%, 10/7/98 9,005
8,100 Minnesota State Housing Finance Agency
SFM, Series 1998 F (AMT), 3.70%, 8/9/99 8,100
3,060 Stearns County Housing & Redevelopment
Authority VRDN (AMT), Cold Spring
Granite Co. Project (First Bank LOC),
4.25%, 10/7/98 3,060
----------
20,165
----------
MISSISSIPPI - 1.0%
9,325 Mississippi State G.O. Refunding
Bonds, Series BTP-207, 3.80%, 10/7/98 9,325
6,695 Mississippi State Home Corp., Series G-CL5
(AMT), PT-218 A, P-Floats, 3.80%, 2/11/99 6,695
3,310 Mississippi State Home Single Family
Revenue Bonds, Series G-CL5 (AMT),
PT-146, P-Floats, 4.15%, 10/7/98 3,310
----------
19,330
----------
MISSOURI - 1.5%
8,500 Missouri Higher Education Loan Authority
Series 1990 B (National Westminister LOC),
3.65%, 10/7/98 8,500
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MISSOURI - 1.5% (CONT'D.)
$ 1,000 Missouri Higher Education Loan Authority
VRDN, Series 1991 B (AMT) (MBIA Insured),
3.85%, 10/7/98 $ 1,000
5,780 Missouri Housing Development VRDN,
Series 1994 A (AMT), Merrill P-Floats
PA-116 (Colld. by U.S. Government
Securities), 4.15%, 10/7/98 5,780
6,500 St. Louis General Fund Bond, TRAN,
4.50%, 6/30/99 6,540
8,000 St. Louis City IDA VRDN, Series 1995
(AMT), Whispering Lakes Apartment
Project (Mercantile Bank of St. Louis LOC),
4.40%, 10/7/98 8,000
----------
29,820
----------
MONTANA - 0.4%
Montana Board of Housing SFM VRDN,
Merrill P-Floats
3,710 Series 1996-A-2, PT-87, 4.15%, 10/7/98 3,710
3,920 Series 1997, PA-158, 4.15%, 10/7/98 3,920
----------
7,630
----------
NEBRASKA - 0.6%
4,350 Nebraska Investment Finance Authority,
Series B (FGIC Insured), SFM Revenue TOB,
3.60%, 1/15/99 4,350
1,900 Nebraska Investment Finance Authority,
Series A3 (AMT), SFM Revenue,
3.90%, 10/7/98 1,900
5,700 Omaha Public Power District, Series A,
Electric Revenue Bond, Series A,
4.05%, 2/1/99 5,709
----------
11,959
----------
NEVADA - 1.5%
4,000 Clark County G.O. Bond, Las Vegas
Convention Authority, SocGen Trust
SGB18, 4.17%, 10/7/98 4,000
6,830 Clark County School District G.O.,
4.17%, 10/7/98 6,830
18,065 Nevada State G.O. VRDN, Series 1997
SGB31 (FGIC Insured), 4.17%, 10/7/98 18,065
----------
28,895
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
NEW HAMPSHIRE - 0.6%
$11,900 New Hampshire State Business Finance
Authority, Series A (AMT), United
Illuminating Co. (Barclays Bank of New
York LOC), 3.65%, 10/7/98 $ 11,900
----------
NEW JERSEY - 0.7%
13,515 New Jersey Transportation Trust Fund
Authority, Series 1996 B PT-161,
3.70%, 2/26/99 13,515
----------
NEW MEXICO - 0.3%
5,140 New Mexico Mortgage Finance Authority
SFM, Series B2 PT-196 (AMT),
3.75%, 5/13/99 5,140
----------
NEW YORK - 2.8%
589 Marine Midland Premium Loan Trust
Variable Rate COP, Series 1991 A, (Hong
Kong and Shanghai Banking Corp. LOC),
4.05%, 10/7/98 589
3,200 New York City Muni Water Finance
Authority, Series 94E, Water and Sewer
System Revenue Bonds (MBIA Insured),
4.12%, 10/7/98 3,200
10,885 New York City Transitional Finance
Authority, Series A, Muni Floating Rate
Certificates, 4.17%, 10/7/98 10,885
12,500 New York State Dorm Authority, Series
1994 B, State University Education Facility,
Floating Rate Certificates (Colld. by U.S.
Government Securities), 4.17%, 10/7/98 12,500
2,100 New York State Dorm Authority, Series A,
Rockefeller University Citicorp Eagle Trust
9703202 (Colld. by U.S. Government
Securities), 4.07%, 10/7/98 2,100
20,715 New York State Dorm Authority, Series A,
State University (Colld. by U.S. Government
Securities), 4.17%, 10/7/98 20,715
2,800 New York State Environmental Facilities
Corp. PCR VRDN, Series No. 94302, Eagle
Trust-Weekly (FSA Insured), 4.07%, 10/7/98 2,800
2,145 Pooled VRDN, P-Floats, Series PPT2
(Backed by Alaska HFA & South Dakota
HDA), 4.07%, 10/1/98 2,145
----------
54,934
----------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
NORTH CAROLINA - 2.3%
$ 2,400 Brunswick County PCR IDR VRDN, Series
1996 (AMT), Armada Project (NationsBank
LOC), 4.10%, 10/7/98 $ 2,400
5,800 Capital Regional Airport Commission
Passenger Facility Charge Revenue VRDN
(AMT) (First Union National Bank of
Charlotte LOC), 4.10%, 10/7/98 5,800
7,300 Catawba County PCR IDR, Series 1996
(AMT), Hooker Furniture Corp. Project
(NationsBank LOC), 4.10%, 10/7/98 7,300
3,000 Columbus County Industrial Facility and
PCR Authority, Series 1998 (AMT),
Conflandey, Inc. Project (Banque Nationale
Paris LOC), 4.15%, 10/7/98 3,000
2,500 Mecklenburg County PCR IDR VRDN,
Series 1996 (AMT), SteriGenics International
Project (Comerica Bank LOC),
3.75%, 10/7/98 2,500
20,000 North Carolina State G.O., Series
A, P-Floats PA-260, 4.14%, 10/7/98 20,000
3,800 North Carolina State Ports Authority
VRDN, Series 1996 (AMT), Morehead City
Terminals, Inc. (NationsBank LOC),
4.10%, 10/7/98 3,800
----------
44,800
----------
NORTH DAKOTA - 0.2%
3,770 North Dakota HFA SFM, Series 1998 A
(AMT) (FHA/Private Mortgages Insured),
3.65%, 1/1/99 3,770
----------
OHIO - 4.0%
14,640 Cleveland City Waterworks, Banc One
Muni Trust Certificates (FSA Insured),
4.17%, 10/7/98 14,640
6,590 Dublin Inn Tax Exempt Mortgage Bond
Trust, Series 1987 Six Month Demand Adj.
Rate Certificate (Huntington National Bank
LOC), 4.57%, 3/1/99 6,590
24,800 Greystone County Certificate Trust, Series
1998-1 Variable Rate Senior Certificate
(Credit Suisse First Boston LOC),
4.15%, 10/7/98 24,800
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
OHIO - 4.0% (CONT'D.)
$9,000 Ohio State Air Quality Development
Authority VRDN, Series A, Ohio Edison
Project (Toronto Dominion Bank LOC),
3.65%, 2/1/99 $ 9,000
4,755 Ohio State HFA VRDN, Series 1989 A
(AMT), 3.80%, 10/7/98 4,755
5,875 Ohio State Infrastructure Improvement
VRDN, Series 1994, BTP-170,
3.75%, 10/22/98 5,875
8,910 Ohio State Public Facility Commission,
Series II A, Higher Education Facilities
BTP-237 (AMBAC Insured),
4.05%, 10/7/98 8,910
1,900 Ohio State Water Development Authority
PCR VRDN, Philip Morris Co. Project
(Philip Morris Cos., Inc. Gtd.),
4.15%, 10/7/98 1,900
2,500 Union County IDR VRDN (AMT), Union
Aggregates Co. Project (PNC Bank LOC),
4.20%, 10/7/98 2,500
----------
78,970
----------
OKLAHOMA - 1.2%
6,400 Oklahoma Water Resources Board, Series
1994 A, State Loan Program (Swiss Bank
Corp. LOC), 3.75%, 3/18/99 6,400
Tulsa City Airport Improvement VRDN
(AMT) (MBIA Insured)
7,245 Series B-1, 4.12%, 10/7/98 7,245
9,390 Series B-2, 4.12%, 10/7/98 9,390
----------
23,035
----------
OREGON - 1.2%
1,100 Metropolitan Service District Riedel Oregon
Compost Waste Disposal VRDN (AMT) (US
Bank NA LOC), 3.90%, 10/7/98 1,100
4,820 Multnomah County School District G.O.
Bond, Series 1996 BTP-208,
3.90%, 12/1/98 4,820
3,900 Oregon State Economic Development
Revenue, Series 176 (AMT), Cascade Steel
Rolling Mills Project (Commerzbank A.G.
LOC), 3.80%, 10/7/98 3,900
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
OREGON - 1.2% (CONT'D.)
$ 6,600 Oregon State Economic Development
Revenue, Series 181 (AMT), Oregon Metal
Slitters, Inc. (Key Bank N.A. LOC),
3.65%, 10/7/98 $ 6,600
1,590 Portland City Multifamily Revenue VRDN,
Series 1996 (AMT), Union Station Project -
Phase B (US Bank NA LOC),
4.14%, 10/7/98 1,590
5,000 Portland City Sewer System Revenue,
Series PA-169, P-Floats (FGIC Insured),
3.90%, 10/7/98 5,000
----------
23,010
----------
PENNSYLVANIA - 4.2%
4,000 Allegheny County Environmental
Improvement IDA, Series 1987, USX
Corp. Project, 3.65%, 10/1/98 4,000
3,700 Chester County IDA, Series 1997 A (AMT),
KAC III Realty Corp. Project (PNC Bank
LOC), 4.20%, 10/7/98 3,700
22,500 Delaware Valley Regional Finance Authority
VRDN, Series 1997 A, Merril Lynch P-Floats
(Midland Bank PLC LOC),
3.70%, 12/17/98 22,500
3,600 Pennsylvania Economic Development
Finance Authority IDR VRDN, Series
1996 A1-8 (AMT) (PNC Bank LOC),
4.20%, 10/7/98 3,600
6,700 Pennsylvania Higher Education Facilities
Authority Revenue Bond VRDN, Series I
(Allied Irish Bank PLC LOC),
4.50%, 11/1/98 6,703
9,900 Pennsylvania Intergovernmental Authority,
BTP-289, City of Philadelphia Funding
Program, 4.10%, 10/7/98 9,900
6,145 Philadelphia City IDA, Series 1998 A (AMT),
BTP-317, 4.16%, 10/7/98 6,145
14,000 Philadelphia City TRAN, Series A,
4.25%, 6/30/99 14,062
10,000 Philadelphia School District, Series
1998/99 B, TRAN (PNC Bank LOC),
4.25%, 6/30/99 10,045
2,125 Washington County IDA VRDN (AMT),
Accutrex Products, Inc. (Mellon Bank LOC),
4.30%, 10/7/98 2,125
----------
82,780
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
SOUTH CAROLINA - 1.0%
$5,400 Cherokee County IDR VRDN, Series 1989
(AMT), Oshkosh Truck Corp. Project
(NationsBank LOC), 3.95%, 10/7/98 $ 5,400
Lexington County IDR VRDN, Allied-Signal
Project (Allied-Signal Corp. Gtd.)
200 Series 1992, 3.80%, 10/7/98 200
900 Series 1992 A, 3.80%, 10/7/98 900
5,000 Piedmont County Muni Power Agency,
4.25%, 10/1/98 5,000
4,241 South Carolina Jobs Economic
Development Authority (AMT), Greenville
YMCA Project (NationsBank LOC),
4.05%, 10/7/98 4,241
4,000 South Carolina Jobs Economic Development
Authority, Series 1998 (AMT), Virtual Image
Technology LLC (NationsBank LOC),
4.15%, 10/7/98 4,000
----------
19,741
----------
SOUTH DAKOTA - 0.7%
8,410 South Dakota Economic Development
Finance Authority VRDN, Series 1996 (AMT),
Hastings Filters, Inc. Project (Harris Trust &
Savings Bank LOC), 4.00%, 10/7/98 8,410
South Dakota Housing Development
Authority Homeowner Mortgage VRDN
(AMT), Merrill P-Floats
1,140 Series PA-119, 4.15%, 10/7/98 1,140
4,275 Series PT-73-A, 4.14%, 10/7/98 4,275
----------
13,825
----------
TENNESSEE - 2.8%
1,400 Clarksville Public Building Authority,
Tennessee Muni Bond Fund (NationsBank
LOC), Series 1995, 4.00%, 10/7/98 1,400
1,400 Dickson County IDR VRDN, Series 1996
(AMT), Tennessee Bun Co. LLC Project
(PNC Bank LOC), 4.20%, 10/7/98 1,400
6,000 Jackson City Waste Facility IDR VRDN,
Series 1995 (AMT), Florida Steel Corp.
Project (NationsBank LOC),
4.10%, 10/7/98 6,000
5,000 Memphis City G.O. VRDN, Series 1996
Soc Gen SGB-23, 4.17%, 10/7/98 5,000
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
TENNESSEE - 2.8% (CONT'D.)
$ 3,000 Memphis City Health Education and
Housing Facility VRDN, Multifamily
Housing Wesely Housing Projects
(Barclays Bank LOC), 4.10%, 10/7/98 $ 3,000
1,500 Morristown City IDR VRDN, Series 1997,
BOS Automotive Products, Inc. (Bayerische
Vereinsbank LOC), 4.15%, 10/7/98 1,500
8,175 Nashville and Davidson Counties Electric
Revenue, Citicorp Eagle Trust,
4.07%, 10/7/98 8,175
5,000 Nashville and Davidson Counties
Housing VRDN (AMT), Old Hickory Towers
Project (FHLB LOC), 3.75%, 10/7/98 5,000
1,200 Nashville and Davidson Counties Health
and Education Facilities Board VRDN,
Series 1996-A, Adventist Health Systems
Sunbelt (SunTrust Bank LOC),
4.05%, 10/7/98 1,200
8,400 Shelby County G.O. Bond, Series 1996 B,
Soc Gen Trust SGB-21 (FSA Insured),
4.17%, 10/7/98 8,400
4,890 Shelby County G.O., Series B BTP-216,
3.70%, 10/22/98 4,890
1,000 Shelby County Health and Education
Authority (AMT), Arbor Lake Project
(PNC Bank LOC), 4.20%, 10/7/98 1,000
8,550 Tennessee State G.O. TOB,
Series 1997 BTP-242, 4.15%, 10/7/98 8,550
----------
55,515
----------
TEXAS - 14.9%
23,535 Arlington City Independent School District,
Series 17, Reset Option Certificates
(PSF Gtd.), 4.17%, 10/7/98 23,535
2,525 Austin City Independent School District
Building VRDN, Series 1996 SG-68 (PSF of
Texas Gtd.), 4.12%, 10/7/98 2,525
9,800 Bastrop Independent School District, Series
1997, Soc Gen Muni Security Trust SGB-37
(PSF Gtd.), 4.17%, 10/7/98 9,800
5,000 Calhoun County Navigation IDR VRDN
(AMT), Formosa Plastics Corp. U.S.A.
(Bank of America LOC), 3.60%, 10/7/98 5,000
3,100 Capital IDA, Gore & Associates, Inc.
Project (Morgan Guaranty Trust LOC),
3.50%, 11/17/98 3,100
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
TEXAS - 14.9% (CONT'D.)
$ 6,500 Denton County Independent School
District G.O., Series B (PSF of Texas Gtd.),
3.90%, 8/15/99 $ 6,500
3,500 El Paso City Housing Finance Corp.
VRDN, Series 1993 (AMT), Viva Apartments
Project (General Electric Corp. LOC),
3.85%, 10/7/98 3,500
7,850 Galveston City Housing Finance Corp.
SFM (AMT), P Floats-PT-205 (Colld. by U.S.
Government Securities), 4.15%, 10/7/98 7,850
Greater Texas Student Loan Corp. (AMT)
(GTD Student Loans Insured) (SLMA LOC)
6,250 Series A, 3.70%, 2/1/99 6,250
15,000 Series A, 3.60%, 3/1/99 15,000
1,800 Gulf Coast Waste Disposal Authority
VRDN, Series 1994 (AMT), Amoco Oil Co.
Project (Amoco Oil Company Gtd.),
4.25%, 10/1/98 1,800
12,000 Harris County Floating Rate Receipts,
Series 1996, Criminal Justice Certificates
SG-96, 3.70%, 10/7/98 12,000
12,000 Harris County Toll Road, Unlimited
Tax Sub Lien, 3.85%, 10/7/98 12,000
4,500 Harris County Toll Road Unlimited
Tax Sub Lien CR138, 4.07%, 10/7/98 4,500
3,800 Harris County Toll Road Unlimited Tax
VRDN, Series 1994 A, Citicorp Eagle Trust
No. 954302, 4.12%, 10/7/98 3,800
3,425 Houston Independent School District,
Public Property Finance Contractual
Obligation, 4.50%, 7/15/99 3,447
3,300 Hurst, Euless and Bedford Independent
School Districts Floating Rate Receipts,
Series SG-98 (PSF Gtd.), 4.12%, 10/7/98 3,300
7,245 Pearland City Independent School District
G.O., Series 1997 SG-106 (PSF Gtd.),
4.12%, 10/7/98 7,245
17,600 Port of Corpus Christi Solid Waste Disposal
(AMT), Koch Refining Co. Project,
3.70%, 10/7/98 17,600
Port Development of Corpus Christi
Solid Waste Disposal VRDN (AMT),
Koch Refining Co. Project
9,750 Series 1996, 3.70%, 10/7/98 9,750
23,100 Series 1997, 3.70%, 10/7/98 23,100
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
TEXAS - 14.9% (CONT'D.)
$33,880 Pooled Puttable Float Option (AMT),
PPT-7D (Backed by Various Housing
Agencies), 3.90%, 3/1/99 $ 33,880
2,600 Port of Houston Authority (AMT),
Unlimited Tax G.O. (FGIC Insured),
5.50%, 10/1/98 2,600
5,700 Port of Port Arthur Navigation District,
Series 1998 (AMT), Fina Oil & Chemical
Co. Project, 4.35%, 10/1/98 5,700
3,785 Port of Port Arthur Navigation District,
Series 1998 (AMT), Star Enterprise Project
(Bank of Montreal LOC), 3.75%, 10/7/98 3,785
9,000 Richardson City Independent School
District TRAN, 4.00%, 8/27/99 9,033
10,000 San Antonio City Electric and Gas System
Revenue, Merrill Lynch Trust Receipts
SG-105, 4.12%, 10/7/98 10,000
9,880 San Antonio City Electric and Gas
Revenue VRDN, Series 1997 SG-107,
4.12%, 10/7/98 9,880
11,210 Sherman Independent School District
G.O., Series 1985 A, SG-80 (PSF Gtd.),
4.12%, 10/7/98 11,210
6,500 Texas Department of Housing and
Community Affairs SFM, Series PA-128
(AMT), 4.15%, 10/7/98 6,500
5,700 Texas State TRAN, 4.25%, 10/1/98 5,700
10,000 Texas Water Development Board, Series A,
State Revolving Sr. Lien, 4.17%, 10/7/98 10,000
1,500 Trinity River IDA, ADP, Inc. Project (ADP,
Inc. Gtd.), 4.35%, 10/1/98 1,500
----------
291,390
----------
VIRGINIA - 2.5%
4,000 Botetourt County IDR VRDN (AMT),
Valley Forge Company Project (Harris
Trust & Savings Bank LOC),
4.05%, 10/7/98 4,000
2,000 Charles County Solid Waste Disposal
Facility IDR (AMT), Chambers
Development, Inc. Project (Morgan
Guaranty LOC), 3.70%, 10/7/98 2,000
9,400 Grant County Waste Disposal Revenue,
Series 1996 (AMT), Virginia Electric Power
Co. Project, 3.65%, 12/17/98 9,400
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
VIRGINIA - 2.5% (CONT'D.)
$ 4,200 Halifax County IDA VRDN, Series 1998
(AMT), D-Scan, Inc. Project (NationsBank
LOC), 4.10%, 10/7/98 $ 4,200
2,500 Louisa Town IDA, Virginia Electric Power
Co. Project, 3.50%, 11/30/98 2,500
12,300 Norfolk City G.O. VRDN, Citicorp Eagle
Trust No. 944601, 4.12%, 10/7/98 12,300
4,615 Virginia State G.O. VRDN, Series 1994,
Citicorp Eagle Trust No. 954601,
4.12%, 10/7/98 4,615
9,385 Virginia State HDA Series C (AMT),
Sub-Series C-1 BTP-196, 4.31%, 10/7/98 9,385
----------
48,400
----------
WASHINGTON - 4.7%
2,850 Algona Economic Development Corp.
(AMT), Peter Pan Seafoods Project (Seattle
First National Bank LOC),
3.75%, 10/7/98 2,850
5,700 Grandview City Public Corp. IDR, Series
1989 (AMT), Shonan USA Project (Bank
of America LOC), 4.05%, 10/7/98 5,700
1,800 Kent City Economic Development Corp.
IDR VRDN, Associated Grocers Project
(Seattle First National Bank LOC),
4.67%, 10/7/98 1,800
5,340 Seattle City Municipal Light and Power
Revenue, Series A, BTP-272,
3.70%, 10/23/98 5,340
Spokane County School District #081, G.O.
7,990 BTP-283, 3.65%, 3/18/99 7,990
6,040 BTP-284, 4.11%, 10/7/98 6,040
4,455 BTP-286, 3.65%, 3/18/99 4,455
3,500 Washington Public Power Supply Revenue,
Series 2, Project 2, 6.20%, 7/1/99 3,571
21,200 Washington Public Power Supply System,
Series 1994, Citicorp Eagle Trust,
4.17%, 10/7/98 21,200
17,519 Washington Public Power Supply System
Revenue, Series 1990 B, Nuclear Project
No. 2, Prerefunded BTP-85 (Colld. by U.S.
Government Securities), 3.80%, 10/15/98 17,519
5,035 Washington Public Power Supply System
Revenue, Series 1994 A, Nuclear Project
No. 2, BTP-61, 4.20%, 10/7/98 5,035
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
WASHINGTON - 4.7% (CONT'D.)
$ 9,575 Washington State G.O. Bonds,
BTP-Partnership BTP-125, 4.11%, 10/7/98 $ 9,575
535 Washington State Housing Finance
Commission VRDN, Series 5A-S (AMT),
Single Family Program, 3.90%, 12/15/98 535
----------
91,610
----------
WEST VIRGINIA - 0.4%
1,300 Brooke County IDR, Series 1997 (AMT),
Star-Kist Foods, Inc. Project (H.J. Heinz Co.
Gtd.), 4.20%, 10/7/98 1,300
Marion County Waste Disposal IDR VRDN
(AMT), Granttown Project (National
Westminster Bank LOC)
2,900 Series 1990 B, 3.65%, 10/7/98 2,900
2,500 Series 1990 C, 3.65%, 10/7/98 2,500
2,000 Ritchie County IDR VRDN (AMT),
Simonton Building Products, Inc. Project
(PNC Bank LOC), 4.20%, 10/7/98 2,000
----------
8,700
----------
WISCONSIN - 3.2%
3,125 Milwaukee City Redevelopment VRDN,
Series 1996 (AMT), Starline Manufacturing,
Inc. (Harris Trust & Savings Bank LOC),
4.05%, 10/7/98 3,125
4,290 Pewaukee City IDR VRDN, Series 1992
(AMT), HUSCO International, Inc. Project
(Bank One Wisconsin LOC),
3.80%, 10/7/98 4,290
10,500 Racine City Unified School District TRAN,
4.00%, 7/7/99 10,533
1,830 Wisconsin Health and Education Revenue
Bond, Series 1994 A, Sinai Samaritan
Medical Center Project (M&I Bank LOC),
4.05%, 10/7/98 1,830
1,445 Wisconsin Health and Education Revenue
Bond, Series 1997, Froedtert Memorial
Lutheran Hospital Trust (M&I Bank LOC),
4.05%, 10/7/98 1,445
5,000 Wisconsin Housing and Economic
Development Authority Revenue Floating
Rate Trust Receipts, Series 1997 FR/RI-18
(AMT), 3.95%, 10/7/98 5,000
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
WISCONSIN - 3.2% (CONT'D.)
$ 6,075 Wisconsin Housing and Economic
Development Authority Revenue,
Series B (AMT), Home Ownership
Revenue Program, 3.55%, 3/1/99 $ 6,075
11,730 Wisconsin Housing and Economic
Development Authority Revenue TOB
Home Ownership Revenue Program,
3.55%, 3/1/99 11,730
8,210 Wisconsin State G.O. Bond, Series
1996 A BTP-209, 3.90%, 10/22/98 8,210
10,370 Wisconsin State Reset Option Certificates
Series 16, 4.17%, 10/7/98 10,370
----------
62,608
----------
WYOMING - 0.5%
10,710 Wyoming Community Development
Authority SFM, Series H (AMT),
BTP-198, 4.31%, 10/7/98 10,710
----------
Total Municipal Investments
(cost $1,952,935) 1,952,935
----------
NUMBER
OF SHARES
(000S)
- ---------
OTHER - 0.6%
586 AIM Tax Free Money Market Fund 586
300 Dreyfus Tax Exempt Cash
Management Fund 300
995 Federated Tax Free Trust Money Market
Fund No. 15 995
500 Federated Tax Free Trust
Money Market Fund No. 73 500
8,585 Provident Municipal Cash Fund (AMT) 8,585
339 Provident Municipal Fund 339
----------
Total Other
(cost $11,305) 11,305
----------
Total Investments - 100.1%
(cost $1,964,240) 1,964,240
Liabilities less Other Assets - (0.1)% (2,084)
----------
NET ASSETS - 100.0% $1,962,156
==========
See Notes to the Financial Statements.
<PAGE>
- --------------------
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
CALIFORNIA MUNICIPAL MONEY MARKET FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 102.8%
CALIFORNIA - 97.8%
$12,000 California Health Facility Authority Kaiser
Permanente IDR FRN, Morgan Stanley
Muni Trust, Series 1998-26 (FSA Insured),
4.07%, 10/7/98 $ 12,000
7,000 California HFA Home Mortgage Housing
Revenue Variable Rate Certificates,
Series 1998 R (AMT) (MBIA Insured),
3.50%, 8/20/99 7,000
1,765 California HFA Home Mortgage Revenue
Bonds, Series C (AMT), 3.55%, 2/1/99 1,765
4,975 California HFA Home Mortgage Revenue
Bonds, Series E (AMT), 3.55%, 3/12/99 4,975
1,275 California HFA Home Mortgage Revenue
FRN, Merrill P-Floats PT-14, Series 1993-B,
3.90%, 10/7/98 1,275
1,680 California HFA Housing Revenue FRN,
Merrill P-Floats PT-40D, 3.95%, 10/7/98 1,680
600 California HFA Housing Revenue FRN,
Merrill P-Floats, Series PT-56 (AMT),
3.95%, 10/7/98 600
2,900 California HFA Multi-Unit Housing
Revenue FRN, Series 92A CR-231
(MBIA Insured), 3.45%, 11/1/98 2,900
1,900 California Pollution Control Finance
Authority, Series 1997 A (AMT), ARCO
Project (Atlantic Richfield Co. Gtd.),
3.85%, 10/7/98 1,900
7,000 California Pollution Control Finance
Authority, Series 1997 B (AMT), Air
Products Manufacturing Co.,
(Air Products & Chemicals Corp. Gtd.),
3.85%, 10/7/98 7,000
300 California Pollution Control Finance
Authority, Series 1997 C (AMT), Pacific Gas
& Electric Co., (KBC Bank N.V. LOC),
4.10%, 10/1/98 300
3,600 California Pollution Control Finance
Authority, Series A, Pacific Gas & Electric
Co. (UBS AG LOC), 3.15%, 10/7/98 3,600
2,855 California State Department of Water
Resources and Sewer VRDN, ML/SG Muni
Trust, Series SG-5, Central Valley Project,
3.90%, 10/7/98 2,855
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CALIFORNIA - 97.8% (CONT'D.)
$ 2,000 California State Economic Development
Finance Authority IDR Bond, Series 1998
(AMT) Lion Raisins Project (Bank of
America LOC), 4.00%, 10/7/98 $ 2,000
4,800 California State Economic Development
Finance Authority IDR FRN, Mercury Air
Group, Inc. Project (AMT) (BankBoston
NA LOC), 3.90%, 10/7/98 4,800
1,050 California State Economic Development
Finance Authority IDR VRDN, Series 1996,
Volk Enterprises, Inc., (Harris Bank Corp.
Gtd.), 3.65%, 10/7/98 1,050
California State G.O., Citibank TOB,
Series CR-152 (FGIC Insured),
1,500 Series 5027 C, 3.92%, 10/7/98 1,500
6,200 Series CR-152, 3.92%, 10/7/98 6,200
18,495 California State G.O. Bank of America
Variable Rate Certificate, Series 1997 H
(Colld. by U.S. Government Securities),
4.07%, 10/7/98 18,495
1,200 California State G.O., Weekly Option,
Series CR-153, 3.75%, 11/1/98 1,200
3,450 California State G.O. Weekly Put TOCR
(MBIA Insured), 3.65%, 10/7/98 3,450
4,200 California State Housing Revenue Bond,
Clipper Trust Certificates, Series 1996-6A
(AMT) (Colld. by FNMA Securities),
4.07%, 10/7/98 4,200
5,000 California State RAN, 3.15%, 6/30/99 5,031
3,000 California State Various Purpose G.O.
Bonds, Merrill Floating Rate Receipts SG-91
(FGIC Insured), 3.93%, 10/7/98 3,000
3,500 California Statewide Community
Development Authority IDR Bonds,
Series 1998 A (AMT), A & B Die Casting Co.
(Bank of America LOC), 4.00%, 10/7/98 3,500
8,700 California Statewide Community
Development Authority Multifamily Bond,
Series S (AMT), Concord Green Apartments
(FHLB of San Francisco LOC),
3.50%, 10/7/98 8,700
7,400 Chula Vista IDR Bond, Series 1996 B
(AMT), San Diego Gas & Electric Co.,
4.20%, 10/1/98 7,400
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
CALIFORNIA MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CALIFORNIA - 97.8% (CONT'D.)
$15,985 Contra Costa County Home Mortgage
Revenue Variable Rates Certificates,
Series 1997 C (Colld. by U.S. Government
Securities), 4.07%, 10/7/98 $ 15,985
3,000 Fontana Unified School District TRAN
1998-99, 4.00%, 7/9/99 3,007
1,200 Foothill/Eastern Transportation Corridor
Agency Toll Road Revenue Bonds, Series
1995 B (Morgan Guaranty Trust Co. LOC),
3.60%, 10/7/98 1,200
5,100 Irvine Ranch Consolidated Water Districts
2, 102, 103, & 206 Water and Sewer FRN,
Series 1993 B (Morgan Guaranty Trust Co.
LOC), 3.80%, 10/1/98 5,100
1,700 Kern County Public Facilities Project COP,
Series A (Union Bank of Switzerland LOC),
3.00%, 10/7/98 1,700
6,600 Livermore TRAN, Series 1997-98,
4.50%, 10/29/98 6,603
2,500 Los Angeles City Subordinated Tax
Allocation IDR FRN, BTP-129 (Colld. by
U.S. Government Securities),
3.90%, 10/8/98 2,500
1,700 Los Angeles City Multifamily Housing
Revenue Refunding Bond, Series 1995 D
(AMT), Coral Wood Court Project (AMT)
(Union Bank of California LOC),
3.60%, 10/7/98 1,700
7,705 Los Angeles City Unlimited G.O. FRN,
Series A (FGIC Insured) 4.02%, 10/7/98 7,705
1,025 Los Angeles Convention and Exhibition
Center Revenue VRDN, Merrill P-Floats,
Series 1993 PA-88 (MBIA Insured),
3.90%, 10/7/98 1,025
4,000 Metropolitan Water District of Southern
California CP, Series B, 3.20%, 12/10/98 4,000
9,280 Orange County Apartment Development
Housing Revenue FRN, Series 1992 B,
Aliso Creek Project (Wells Fargo & Co.
LOC), 4.00%, 10/7/98 9,280
2,800 Orange County Apartment Development
Housing Revenue FRN, Wood Canyon
Villas Issue B of 1991 (Bank of America
LOC), 3.15%, 10/7/98 2,800
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CALIFORNIA - 97.8% (CONT'D.)
$ 1,020 Riverside County Multifamily Housing
Revenue FRN, Series A, Ambergate
Apartments (Union Bank of California
LOC), 3.85%, 10/7/98 $ 1,020
4,475 Riverside County Public Facilities Project
COP, Series B, (National Westminster PLC
LOC), 3.00%, 10/7/98 4,475
4,345 Riverside County School Finance Authority
RAN, Series A, 3.80%, 7/30/99 4,345
2,050 San Bernardino County Housing Authority
Revenue FRN, Series A, Brookside Meadows
Multifamily (Chase Manhattan Bank N.A.
LOC), 3.10%, 10/7/98 2,050
3,200 San Diego County Housing Revenue
Refunding VRDN, Series 1994 A, Country
Hills Apartments Phase II, (Colld. by FNMA
Securities), 3.00%, 10/7/98 3,200
3,000 San Francisco City and County Airport
Commission Intentional Airport Revenue
FRN, Susquehanna Structured Projects
SSP-4 (AMT) (AMBAC Insured),
3.80%, 10/7/98 3,000
2,975 San Francisco City and County Variable
Rate Certificates, Series 1996-AA6
(FGIC Insured), 4.02%, 10/7/98 2,975
4,630 San Marcos City Public Facility Authority
Revenue Bond, Series BTP-188, Civic
Center Projects (Colld. by U.S. Government
Securities), 3.60%, 3/25/99 4,630
845 Santa Clara County Housing Authority
Multifamily VRDN, Series A, Avenida
Espana Gardens (AMT) (Union Bank of
California LOC), 4.20%, 10/7/98 845
5,000 Regents of the University of California
Floating Rate Treasury Receipts, Series 13,
Multiple Purpose Projects (MBIA Insured),
3.80%, 10/7/98 5,000
4,390 Regents of University of California
Refunding Revenue Bonds, Series C,
ML/SG Muni Trust, SG-24
(AMBAC Insured), 3.90%, 10/7/98 4,390
10,000 Ventura County TRAN 1998-99,
3.60%, 12/9/98 10,000
3,000 Whittier Union High School District
TRAN, 4.25%, 6/30/99 3,014
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
CALIFORNIA MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CALIFORNIA - 97.8% (CONT'D.)
$2,000 Yucaipa-Calimesa Joint Unified School
District TRAN 1998-99,
4.25%, 6/30/99 $ 2,006
----------
231,931
----------
PUERTO RICO - 5.0%
Government Development Bank for
Puerto Rico Tax-Exempt CP
4,000 3.15%, 10/15/98 4,000
1,200 3.00%, 10/30/98 1,200
4,740 Puerto Rico Commonwealth Highway
and Transportation Authority
Transportation Revenue Bond, Series A
(AMBAC Insured), 3.10%, 10/7/98 4,740
2,000 Puerto Rico Industrial Medical &
Environmental IDR Bond, Series 1983 A,
Merck & Co., Inc. (Merck & Co., Inc.
Gtd.), 4.00%, 12/1/98 2,001
----------
11,941
----------
Total Municipal Investments
(cost $243,872) 243,872
----------
NUMBER
OF SHARES
(000S)
- ---------
OTHER - 0.5%
484 Federated Tax-Exempt
Money Market Fund No. 80 484
558 Provident Institutional California
Money Fund 558
----------
Total Other
(cost $1,042) 1,042
----------
Total Investments - 103.3%
(cost $244,914) 244,914
Liabilities less Other Assets - (3.3)% (7,817)
----------
NET ASSETS - 100.0% $ 237,097
==========
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NORTHERN FUNDS Semi-Annual Report
- --------------------
NOTES TO THE
FINANCIAL STATEMENTS
SEPTEMBER 30, 1998 (UNAUDITED)
1.ORGANIZATION
Northern Funds was organized October 12, 1993 as a Massachusetts business trust
and is registered under the Investment Company Act of 1940 as an open-end
management investment company consisting of 21 portfolios. The Money Market,
U.S. Government Money Market, U.S. Government Select Money Market, Municipal
Money Market and California Municipal Money Market Funds (collectively the
"Funds") are separate, diversified investment portfolios of Northern Funds,
except the California Municipal Money Market Fund which is a non-diversified
portfolio of Northern Funds. Non-diversified portfolios may invest a relatively
high percentage of their net assets in obligations of a limited number of
issuers. Each of the Funds maintains its own investment objective.
The Funds have entered into an Investment Advisory Agreement with The
Northern Trust Company ("Northern Trust" or the "Adviser"). Northern Trust also
serves as custodian, fund accountant and transfer agent for the Funds.
2.SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds. These policies are in conformity with generally accepted
accounting principles ("GAAP"). The preparation of financial statements in
conformity with GAAP requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
A VALUATION OF SECURITIES - Short-term investments held by the Funds are valued
using the amortized cost method, which approximates market value. Under this
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. Guaranteed investment
contracts are valued at cost plus accrued interest, which approximates market
value. Any securities for which no current quotations are readily available
are valued at fair value as determined in good faith by the Adviser under the
supervision of the Board of Trustees.
B REPURCHASE AGREEMENTS - During the term of a repurchase agreement, the market
value of the underlying collateral, including accrued interest, is required
to equal or exceed the market value of the repurchase agreement. The
underlying collateral for all repurchase agreements is held in a customer-
only account of Northern Trust, as custodian for the Funds, at the Federal
Reserve Bank of Chicago.
C ORGANIZATION COSTS - Organization expenses of approximately $342,000 have
been deferred and are being amortized on a straight-line basis through 1999.
D INVESTMENT TRANSACTIONS AND INCOME - Investment transactions are recorded as
of the trade date. The Funds determine the gain or loss realized from
investment transactions by using an identified cost basis method. Interest
income is recognized on an accrual basis and includes amortization of
discounts and premiums.
E EXPENSES - The Funds are charged for those expenses that are directly
attributable to each Fund. Expenses that are not directly attributable to a
Fund are typically allocated among the Funds in proportion to their
respective net assets.
F DISTRIBUTIONS TO SHAREHOLDERS - Dividends from net investment income are
declared daily and paid monthly.
Distributions of net realized capital gains, if any, are declared at least
annually. Distributions to shareholders are recorded on the ex-dividend
date.
The timing and character of distributions determined in accordance with
federal income tax regulations may differ from financial statement amounts
determined in accordance with generally accepted accounting principles due to
differences in the treatment and recognition of investment income and
realized gains (losses). These differences are primarily related to capital
loss carryforwards. Certain differences in treatment of income and capital
gains for distributions, which are permanent, may result in periodic
reclassifications in the Funds' capital accounts.
<PAGE>
G FEDERAL INCOME TAXES - No provision for federal income taxes has been made
since the Funds intend to comply with the requirements of the Internal
Revenue Code available to regulated investment companies.
At March 31, 1998, the California Municipal Money Market Fund had a capital
loss carryforward, for federal income tax purposes, of approximately $1,000
due to expire March 31, 2006. This capital loss carryforward is available to
offset future gains.
3.INVESTMENT ADVISORY AND OTHER AGREEMENTS
Pursuant to its advisory agreement with the Funds, the Adviser is entitled to
receive a fee, calculated daily and payable monthly, at the annual rates
presented below as applied to each Fund's daily net assets. For the six months
ended September 30, 1998, the Adviser voluntarily agreed to waive a portion of
its advisory fees as applied to each Fund's daily net assets as shown on the
accompanying Statements of Operations. Northern Trust had also agreed to
reimburse the Funds as shown on the accompanying Statements of Operations to
adhere to the expense limitations presented in the following table:
ANNUAL ADVISORY
ADVISORY FEES AFTER EXPENSE
FEES WAIVERS LIMITATIONS
- ----------------------------------------------------------------------------
Money Market 0.60% 0.40% 0.55%
U.S. Government
Money Market 0.60% 0.40% 0.55%
U.S. Government Select
Money Market 0.60% 0.40% 0.55%
Municipal Money
Market 0.60% 0.40% 0.55%
California Municipal
Money Market 0.60% 0.40% 0.55%
- ----------------------------------------------------------------------------
For the periods April 1, 1997 to September 30, 1997 and November 3, 1997 to
December 31, 1997, the annual advisory fees, advisory fees after waivers and
expense limitations for the U.S. Government Select Money Market and California
Municipal Money Market Funds were as follows:
ANNUAL ADVISORY
ADVISORY FEES AFTER EXPENSE
FEES WAIVERS LIMITATIONS
- ----------------------------------------------------------------------------
U.S. Government Select
Money Market 0.60% 0.25% 0.40%
California Municipal
Money Market 0.60% 0.30% 0.45%
- ----------------------------------------------------------------------------
The Funds have entered into an administrative agreement with Sunstone
Financial Group, Inc. ("Sunstone") for certain administrative services.
Pursuant to its administrative agreement with the Funds, Sunstone is entitled to
receive a fee, computed daily and payable monthly, at the annual rate of 0.15%
of each Fund's daily net assets. For the six months ended September 30, 1998,
Sunstone voluntarily agreed to waive a portion of its administration fees as
shown on the accompanying Statements of Operations. The waivers and
reimbursements of Northern Trust and Sunstone described above are voluntary and
may be terminated by them at any time at their discretion.
4. BANK LOANS
The Funds maintain a $5,000,000 revolving bank credit line for liquidity and
other purposes. Borrowings under this arrangement bear interest at 1% above the
Fed Funds rate and are secured by pledged securities equal to or exceeding 120%
of the outstanding balance.
As of September 30, 1998, there were no outstanding borrowings.
<PAGE>
This report has been prepared for the general information of Northern Funds
shareholders. It is not authorized for distribution to prospective investors
unless accompanied or preceded by a current Northern Funds prospectus, which
contains more complete information about Northern Funds investment policies,
management fees and expenses. Investors are reminded to read the prospectus
carefully before investing or sending money.
(logo)
Northern Funds
P.O. Box 75986
Chicago, IL 60690-6319
1-800-595-9111
NF4110998
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