(LOGO)
NORTHERN FUNDS
MONEY MARKET 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 FIXED INCOME FUNDS
U.S. GOVERNMENT FUND INTERMEDIATE TAX-EXEMPT FUND
FLORIDA INTERMEDIATE TAX-EXEMPT FUND FIXED INCOME FUND
TAX-EXEMPT FUND CALIFORNIA TAX-EXEMPT FUND
INTERNATIONAL FIXED INCOME FUND HIGH YIELD MUNICIPAL FUND
HIGH YIELD FIXED INCOME FUND EQUITY FUNDS
INCOME EQUITY FUND STOCK INDEX FUND
GROWTH EQUITY FUND SELECT EQUITY FUND
MID CAP GROWTH FUND SMALL CAP INDEX FUND SMALL CAP FUND
INTERNATIONAL GROWTH EQUITY FUND INTERNATIONAL SELECT EQUITY FUND
TECHNOLOGY FUND
------------------------------------------------------------------------------
SEMIANNUAL REPORT
------------------------------------------------------------------------------
September 30, 1999
<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.................................................. 11
U.S. Government Money Market Fund.................................. 16
U.S. Government Select Money Market Fund........................... 17
Municipal Money Market Fund........................................ 18
California Municipal Money Market Fund............................. 33
Fixed Income Funds
Statements of Assets and Liabilities..................................38
Statements of Operations............................................. 40
Statements of Changes in Net Assets.................................. 42
Financial Highlights................................................. 45
Schedules of Investments
U.S. Government Fund............................................... 51
Intermediate Tax-Exempt Fund....................................... 52
Florida Intermediate Tax-Exempt Fund............................... 58
Fixed Income Fund.................................................. 60
Tax-Exempt Fund.................................................... 63
California Tax-Exempt Fund......................................... 68
International Fixed Income Fund.................................... 71
High Yield Municipal Fund.......................................... 72
High Yield Fixed Income Fund....................................... 75
Equity Funds
Statements of Assets and Liabilities................................. 78
Statements of Operations............................................. 79
Statements of Changes in Net Assets.................................. 80
Financial Highlights................................................. 82
Schedules of Investments
Income Equity Fund................................................. 88
Stock Index Fund................................................... 91
Growth Equity Fund................................................. 99
Select Equity Fund................................................ 102
Mid Cap Growth Fund............................................... 104
Small Cap Index Fund.............................................. 106
Small Cap Fund.................................................... 131
International Growth Equity Fund.................................. 145
International Select Equity Fund.................................. 148
Technology Fund................................................... 150
Notes to the Financial Statements...................................... 152
<PAGE>
This page intentionally left blank.
<PAGE>
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.
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.
Prerefunding is a procedure in which a bond issuer floats a second bond in order
to pay off the first bond at the first call date. The proceeds from the sale of
the second bond are safely invested, usually in Treasury securities, that will
mature at the first call date of the first bond issue. Those first bonds are
said to be prerefunded after this operation has taken place.
EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULES OF INVESTMENTS
ADR American Depository Receipt
AMBAC American Municipal Bond
Assurance Corp.
AMT Alternative Minimum Tax
BAN Bond Anticipation Notes
COLLD. Collateralized
COP Certificate of Participation
CP Commercial Paper
CVP Central Valley Project
DEC Dividend Enhanced
Convertible Stock
FFCB Federal Farm Credit Bank
FGIC Financial Guaranty
Insurance Corp.
FHA Federal Housing
Authority
FHLB Federal Home Loan Bank
FHLMC Freddie Mac
FNMA Fannie Mae
FRN Floating Rate Note
FSA Financial Security Assurance
GDR Global Depository Receipts
GNMA Government National Mortgage Association
G.O. General Obligation
GTD. Guaranteed
HDA Housing Development Agency
HFA Housing Finance Authority
HUD Housing and Urban
Development
I.O. Interest Only Stripped Security
IDA Industrial Development
Authority
IDR Industrial Development Revenue
LOC Letter of Credit
MBIA Municipal Bond Insurance
Association
MIPS Monthly Income Preferred
Securities
ML/SG Merrill Societe Generale
MTN Medium Term Notes
P-FLOATS Puttable Floating Rate Securities
PCR Pollution Control Revenue
PFA Public Finance Authority
PRIDES Preferred Redeemable Increased
Dividend Securities
PRSV Preservation
PSF Permanent School Fund
RAN Revenue Anticipation Notes
ROC Reset Option Certificates
SFM Single Family Mortgage
SLMA SLM Holding Corp.
SOC GEN Societe Generale
STRYPES Structured Yield Products
Exchangeable for Stock
TAN Tax Anticipation Notes
TECONS Term Convertible Securities
TRACES Trust Automatic Common
Exchange Securities
TRAN Tax and Revenue
Anticipation Notes
TRB Tax Revenue Bonds
VRDN Variable Rate Demand Notes
VRN Variable Rate Notes
* Non-Income Producing
Security
----------------------------
NOT FDIC-INSURED
----------------------------
May lose value
No bank guarantee
----------------------------
An investment in Northern Funds is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other governmental agency. Although
the money market funds seek to preserve the value of your investment at $1.00
per share, it is possible to lose money by investing in the Funds.
An investment in a non-money market fund involves risks including possible loss
of principle.
Shares of Northern Funds are distributed by Northern Funds Distributors, LLC, an
independent third party.
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES SEPTEMBER 30, 1999 (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
- -------------------------------------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at amortized cost $5,250,690 $433,578 $402,402 $2,224,766 $449,760
Repurchase agreements, at cost which
approximates market value - 52,056 - - -
Cash - 6 46 - 76
Income receivable 21,060 752 927 14,824 2,931
Receivable from Adviser - - - - 29
Receivable for securities sold - - - 45 -
Prepaid and other assets 85 22 16 41 10
- ------------------------------------------------------------------------------------------------------------------------------------
Total Assets 5,271,835 486,414 403,391 2,239,676 452,806
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Overdraft 142 - - 90 -
Dividends payable 21,296 1,749 1,441 5,479 932
Payable for securities purchased - 44,591 24,985 - -
Accrued investment advisory fees 230 20 16 99 19
Accrued transfer agent fees 57 5 4 25 5
Accrued custody and accounting fees 34 10 7 36 8
Accrued registration fees and other liabilities 403 46 53 273 28
- ------------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 22,162 46,421 26,506 6,002 992
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets $5,249,673 $439,993 $376,885 $2,233,674 $451,814
====================================================================================================================================
ANALYSIS OF NET ASSETS:
Capital stock $5,249,547 $439,953 $376,860 $2,233,370 $451,767
Undistributed net investment income 124 33 21 207 20
Undistributed net realized gains 2 7 4 97 27
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets $5,249,673 $439,993 $376,885 $2,233,674 $451,814
====================================================================================================================================
SHARES OUTSTANDING ($.0001 PAR VALUE,
UNLIMITED AUTHORIZATION) 5,249,667 439,985 376,880 2,233,507 451,786
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.
<PAGE>
NORTHERN FUNDS Semiannual Report
STATEMENTS OF OPERATIONS SIX MONTHS ENDED SEPTEMBER 30, 1999 (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
- --------------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $130,159 $11,085 $9,770 $37,295 $5,893
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 15,124 1,318 1,176 6,755 1,155
Administration fees 3,781 330 294 1,689 289
Transfer agent fees 2,521 220 196 1,126 193
Custody and accounting fees 546 68 60 244 60
Registration fees 290 20 40 148 57
Professional fees 46 11 11 24 9
Trustees' fees and expenses 30 4 4 16 3
Other 86 27 7 44 5
- ------------------------------------------------------------------------------------------------------------------------------------
Total Expenses 22,424 1,998 1,788 10,046 1,771
Less voluntary waivers of:
Investment advisory fees (5,041) (439) (392) (2,252) (385)
Administration fees (2,577) (227) (195) (1,149) (199)
Less reimbursement of expenses by Adviser (943) (123) (123) (453) (128)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Expenses 13,863 1,209 1,078 6,192 1,059
- ------------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 116,296 9,876 8,692 31,103 4,834
- ------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAINS (LOSSES):
Investments (34) - 1 (131) (4)
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $116,262 $9,876 $8,693 $30,972 $4,830
====================================================================================================================================
</TABLE>
See Notes to the Financial Statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
MONEY MARKET FUNDS
<TABLE>
<CAPTION>
U.S. GOVERNMENT
MONEY MARKET MONEY MARKET
FUND FUND
------------------------------- -------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR
SEPT. 30, ENDED SEPT. 30, ENDED
1999 MAR. 31, 1999 MAR. 31,
AMOUNTS IN THOUSANDS (UNAUDITED) 1999 (UNAUDITED) 1999
- -------------------------------- -------------------------------- ----------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 116,296 $ 188,380 $ 9,876 $ 20,858
Net realized gains (losses) on investments (34) 33 - 3
- -----------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting
from Operations 116,262 188,413 9,876 20,861
- -----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 9,961,364 14,249,027 952,495 2,260,589
Shares from reinvestment of dividends 22,248 31,770 3,250 4,881
Shares redeemed (9,620,003) (12,690,762) (985,618) (2,212,649)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting
from Capital Share Transactions 363,609 1,590,035 (29,873) 52,821
- -----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID:
From net investment income (116,296) (188,380) (9,876) (20,858)
From net realized gains - - - -
- -----------------------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (116,296) (188,380) (9,876) (20,858)
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 363,575 1,590,068 (29,873) 52,824
NET ASSETS:
Beginning of period 4,886,098 3,296,030 469,866 417,042
- -----------------------------------------------------------------------------------------------------------------------------------
End of period $5,249,673 $4,886,098 $439,993 $469,866
===================================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $124 $124 $33 $33
===================================================================================================================================
</TABLE>
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
<TABLE>
<CAPTION>
U.S. GOVERNMENT CALIFORNIA
SELECT MUNICIPAL MUNICIPAL
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
-------------------------- ------------------------- --------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED YEAR
SEPT. 30, ENDED SEPT. 30, ENDED SEPT. 30, ENDED
1999 MAR. 31, 1999 MAR. 31, 1999 MAR. 31,
AMOUNTS IN THOUSANDS (UNAUDITED) 1999 (UNAUDITED) 1999 (UNAUDITED) 1999
- -------------------------------- ------------------------- ------------------------ -------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 8,692 $ 17,144 $ 31,103 $ 59,255 $ 4,834 $ 7,325
Net realized gains (losses)
on investments 1 3 (131) 228 (4) 32
- -----------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting
from Operations 8,693 17,147 30,972 59,483 4,830 7,357
- -----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 899,113 1,670,254 3,978,050 9,069,717 1,069,930 1,609,467
Shares from reinvestment of dividends 2,533 5,089 5,081 9,443 1,500 1,945
Shares redeemed (941,289) (1,565,244) (4,133,356) (8,509,555) (982,662) (1,473,237)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net
Assets Resulting
from Capital Share Transactions (39,643) 110,099 (150,225) 569,605 88,768 138,175
- -----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID:
From net investment income (8,692) (17,144) (31,103) (59,255) (4,834) (7,325)
From net realized gains - - - (146) - -
- -----------------------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (8,692) (17,144) (31,103) (59,401) (4,834) (7,325)
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS (39,642) 110,102 (150,356) 569,687 88,764 138,207
NET ASSETS:
Beginning of period 416,527 306,425 2,384,030 1,814,343 363,050 224,843
- -----------------------------------------------------------------------------------------------------------------------------------
End of period $376,885 $416,527 $2,233,674 $2,384,030 $451,814 $363,050
===================================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $21 $21 $207 $207 $20 $20
===================================================================================================================================
</TABLE>
See Notes to the Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS
MONEY MARKET FUNDS
<TABLE>
<CAPTION>
MONEY MARKET
FUND
-------------------------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
1999 1999 1998 1997 1996 1995<F1>
(UNAUDITED)
- ------------------------- -------------------------------------------------------------------------------------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.02 0.05 0.05 0.05 0.05 0.04
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.02) (0.05) (0.05) (0.05) (0.05) (0.04)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
================================================================================================================================
TOTAL RETURN<F2> 2.33% 5.04% 5.31% 5.05% 5.57% 4.55%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $5,249,673 $4,886,098 $3,296,030 $1,607,187 $1,061,813 $894,279
Ratio to average net assets of<F3>:
Expenses, net of waivers and
reimbursements 0.55% 0.55% 0.55% 0.55% 0.49% 0.45%
Expenses, before waivers and
reimbursements 0.89% 0.89% 0.90% 0.90% 0.91% 0.96%
Net investment income, net of
waivers and reimbursements 4.61% 4.91% 5.19% 4.94% 5.42% 4.94%
Net investment income, before
waivers and reimbursements 4.27% 4.57% 4.84% 4.59% 5.00% 4.43%
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> For the period November 29, 1994 (commencement of operations) through March
31, 1995.
<F2> Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at net asset value at the end of the year. Total return
is not annualized for periods less than one year.
<F3> Annualized for periods less than a full year.
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
<TABLE>
<CAPTION>
U.S. GOVERNMENT
MONEY MARKET
FUND
-------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR YEAR
SEPT. 30, ENDED ENDED ENDED ENDED ENDED
1999 MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
(UNAUDITED) 1999 1998 1997 1996 1995<F1>
- ------------------------- -----------------------------------------------------------------------------------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.02 0.05 0.05 0.05 0.05 0.04
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.02) (0.05) (0.05) (0.05) (0.05) (0.04)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
================================================================================================================================
TOTAL RETURN<F2> 2.28% 4.94% 5.22% 4.93% 5.46% 4.47%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $439,993 $469,866 $417,042 $314,259 $207,105 $227,543
Ratio to average net assets of<F3>:
Expenses, net of waivers and
reimbursements 0.55% 0.55% 0.55% 0.55% 0.49% 0.45%
Expenses, before waivers and
reimbursements 0.91% 0.91% 0.93% 0.96% 0.94% 1.01%
Net investment income, net of
waivers and reimbursements 4.50% 4.82% 5.10% 4.82% 5.33% 4.93%
Net investment income, before
waivers and reimbursements 4.14% 4.46% 4.72% 4.41% 4.88% 4.37%
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> For the period November 29, 1994 (commencement of operations) through March
31, 1995.
<F2> Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at net asset value at the end of the year. Total return
is not annualized for periods less than one year.
<F3> Annualized for periods less than a full year.
See Notes to the Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
MONEY MARKET FUNDS
<TABLE>
<CAPTION>
U.S. GOVERNMENT
SELECT
MONEY MARKET
FUND
-------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR YEAR
SEPT. 30, ENDED ENDED ENDED ENDED ENDED
1999 MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
(UNAUDITED) 1999 1998 1997 1996 1995<F1>
- ------------------------- -------------------------------------------------------------------------------------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.02 0.05 0.05 0.05 0.05 0.02
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.02) (0.05) (0.05) (0.05) (0.05) (0.02)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
================================================================================================================================
TOTAL RETURN<F3> 2.25% 4.87% 5.24% 5.07% 5.55% 1.75%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $376,885 $416,527 $306,425 $168,128 $85,400 $82,162
Ratio to average net assets of<F4>:
Expenses, net of waivers and
reimbursements 0.55% 0.55% 0.46% 0.40% 0.33% 0.30%
Expenses, before waivers and
reimbursements 0.91% 0.91% 0.93% 0.97% 1.00% 1.32%
Net investment income, net of
waivers and reimbursements 4.44% 4.73% 5.13% 4.95% 5.43% 5.84%
Net investment income, before
waivers and reimbursements 4.08% 4.37% 4.66% 4.38% 4.76% 4.82%
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> For the period December 12, 1994 (commencement of operations) through March
31, 1995.
<F2> For the period April 11, 1994 (commencement of operations) through March
31, 1995.
<F3> Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at net asset value at the end of the year. 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 Semiannual Report
<TABLE>
<CAPTION>
MUNICIPAL
MONEY MARKET
FUND
-------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR YEAR
SEPT. 30, ENDED ENDED ENDED ENDED ENDED
1999 MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
(UNAUDITED) 1999 1998 1997 1996 1995<F2>
- ------------------------- -------------------------------------------------------------------------------------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.01 0.03 0.03 0.03 0.03 0.03
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.01) (0.03) (0.03) (0.03) (0.03) (0.03)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
================================================================================================================================
TOTAL RETURN<F3> 1.40% 2.98% 3.27% 3.14% 3.54% 2.90%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $2,233,674 $2,384,030 $1,814,343 $1,420,041 $1,102,789 $927,747
Ratio to average net assets of<F4>:
Expenses, net of waivers and
reimbursements 0.55% 0.55% 0.55% 0.55% 0.49% 0.45%
Expenses, before waivers and
reimbursements 0.89% 0.89% 0.89% 0.90% 0.91% 0.95%
Net investment income, net of
waivers and reimbursements 2.76% 2.90% 3.20% 3.08% 3.46% 3.10%
Net investment income, before
waivers and reimbursements 2.42% 2.56% 2.86% 2.73% 3.04% 2.60%
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> For the period December 12, 1994 (commencement of operations) through March
31, 1995.
<F2> For the period April 11, 1994 (commencement of operations) through March
31, 1995.
<F3> Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at net asset value at the end of the year. 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>
FINANCIAL HIGHLIGHTS (CONTINUED)
MONEY MARKET FUNDS
<TABLE>
<CAPTION>
CALIFORNIA
MUNICIPAL
MONEY MARKET
FUND
-------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR YEAR
SEPT. 30, ENDED ENDED ENDED ENDED ENDED
1999 MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
(UNAUDITED) 1999 1998 1997 1996 1995<F1>
- ------------------------- -------------- --------- -------- -------- -------- --------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.01 0.03 0.03 0.03 0.04 0.01
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.01) (0.03) (0.03) (0.03) (0.04) (0.01)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
================================================================================================================================
TOTAL RETURN<F2> 1.27% 2.75% 3.20% 3.19% 3.63% 1.27%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $451,814 $363,050 $224,843 $200,989 $165,087 $161,316
Ratio to average net assets of <F3>:
Expenses, net of waivers and
reimbursements 0.55% 0.55% 0.49% 0.45% 0.39% 0.35%
Expenses, before waivers and
reimbursements 0.92% 0.91% 0.94% 0.94% 0.94% 1.07%
Net investment income, net of
waivers and reimbursements 2.51% 2.68% 3.14% 3.13% 3.55% 3.78%
Net investment income, before
waivers and reimbursements 2.14% 2.32% 2.69% 2.64% 3.00% 3.06%
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> For the period April 11, 1994 (commencement of operations) through March
31, 1995.
<F2> Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at net asset value at the end of the year. Total return
is not annualized for periods less than one year.
<F3> Annualized for periods less than a full year.
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
MONEY MARKET FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT - 10.3%
DOMESTIC CERTIFICATES OF DEPOSIT - 1.7%
Huntington National Bank, Columbus,
$20,000 5.01%, 2/8/00 $ 19,999
57,000 5.40%, 5/31/00 56,982
12,500 Michigan National Bank,
5.18%, 4/25/00 12,497
----------
89,478
----------
FOREIGN CERTIFICATES OF DEPOSIT - 8.6%
50,000 Bank of Nova Scotia, New York Branch,
5.20%, 2/25/00 49,992
Banque Nationale de Paris,
Chicago Branch,
25,000 5.23%, 2/25/00 24,997
89,000 5.12%, 4/17/00 88,977
12,500 Banque Nationale de Paris,
San Francisco Branch, 4.95%, 12/14/99 12,500
50,000 Commerzbank, New York Branch,
5.08%, 2/8/00 49,996
37,500 Deutsche Bank, New York Branch,
5.25%, 5/10/00 37,489
15,000 National Bank of Canada,
New York Branch, 5.81%, 7/31/00 14,995
50,000 National Westiminster Bank,
New York Branch, 5.71%, 7/3/00 49,986
50,000 Royal Bank of Canada, New York Branch,
5.25%, 2/28/00 49,992
Societe Generale, New York Branch,
35,000 5.26%, 2/28/00 34,994
35,000 5.24%, 5/8/00 34,992
----------
448,910
----------
Total Certificates of Deposit
(cost $538,388) 538,388
----------
COMMERCIAL PAPER - 65.2%
ADMINISTRATION OF ENVIRONMENT
& HOUSING PROGRAMS - 1.1%
Alaska Housing Finance Corp.,
36,600 5.38%, 10/5/99 36,578
20,000 5.27%, 10/13/99 19,965
----------
56,543
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
ASSET BACKED SECURITIES - 0.9%
$44,935 Newcourt Equipment Trust,
6.00%, 1/28/00 $ 44,922
----------
AUTO MANUFACTURERS - 5.0%
15,450 AESOP Funding Corp.,
5.40%, 10/14/99 15,420
Cooperative Association of Tractor,
8,000 5.56%, 10/7/99 7,993
1,500 5.48%, 10/26/99 1,494
2,000 5.45%, 11/16/99 1,986
4,900 5.50%, 11/19/99 4,864
Moriarty Ltd.,
60,900 5.46%, 10/1/99 60,900
21,950 5.25%, 10/12/99 21,915
45,000 5.27%, 10/22/99 44,864
15,000 5.40%, 10/25/99 14,947
50,000 5.50%, 12/2/99 49,533
Victory Receivables Corp.,
18,060 5.40%, 10/18/99 18,014
18,500 5.42%, 10/20/99 18,447
----------
260,377
----------
BANKS - 1.2%
Marshall & Isley Corp.,
21,100 5.41%, 10/8/99 21,078
20,000 5.45%, 11/8/99 19,886
22,000 Morgan (J.P.) & Co., Inc.
5.23%, 10/12/99 21,965
----------
62,929
----------
BEVERAGES - 0.2%
9,000 Coca Cola Enterprises,
5.25%, 10/14/99 8,983
----------
COLLATERIZED LOAN OBLIGATIONS - 4.5%
Lyon Short Term Funding,
18,109 5.47%, 11/12/99 17,995
20,000 5.47%, 11/16/99 19,862
R.O.S.E. Corp.,
20,000 5.35%, 10/14/99 19,962
17,250 5.41%, 10/28/99 17,180
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
COMMERCIAL PAPER -
65.2% (CONT'D.)
COLLATERIZED LOAN OBLIGATIONS - 4.5% (CONT'D.)
Syndicated Loan Funding Trust
$35,000 Series 1999-5, 5.52%, 2/15/00 $ 35,000
50,000 Series CR-12T 1996, 5.42%, 3/15/00 50,000
40,000 Series 1999-2, 5.63%, 10/16/00 40,000
16,000 Stellar Funding Inc.,
5.55%, 10/5/99 15,990
20,000 Triangle Funding Ltd.,
5.35%, 10/3/99 20,000
----------
235,989
----------
COMMUNICATIONS - 1.0%
50,000 GTE Corp.,
5.46%, 10/4/99 49,977
----------
COMPUTER & INDUSTRIAL MACHINES
& EQUIPMENT - 1.3%
Invensys PLC,
18,000 5.75%, 10/1/99 18,000
37,680 5.30%, 10/15/99 37,600
12,000 5.18%, 12/7/99 11,887
----------
67,487
----------
DOMESTIC DEPOSITORY INSTITUTIONS - 0.8%
40,000 Heller Financial Inc. Medium Term Note,
5.66%, 11/15/99 40,010
----------
ELECTRONICS & OTHER ELECTRICAL
COMPONENTS - 0.0%
526 GE Engine Receivables 1995-1 Trust,
5.20%, 10/7/99 526
500 General Electric Capital Corp.,
5.83%, 4/14/00 485
----------
1,011
----------
FOREIGN DEPOSITORY INSTITUTIONS - 0.7%
37,500 Spintab AB/Swedmortgage,
5.24%, 10/5/99 37,478
----------
HOLDING & OTHER INVESTMENT
OFFICES - 0.2%
10,000 Louis Dreyfus Corp.,
5.38%, 10/18/99 9,975
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
INSURANCE - 5.0%
Aetna Service Co.,
$ 12,000 5.40%, 10/21/99 $ 11,964
40,000 5.40%, 10/22/99 39,875
10,990 AON Corp.,
5.39%, 10/20/99 10,959
SAFECO Credit Corp.,
10,020 5.41%, 10/12/99 10,004
18,500 5.23%, 10/15/99 18,463
15,000 5.34%, 10/29/99 14,938
15,600 5.45%, 11/8/99 15,511
Torchmark, Inc.,
14,500 5.43%, 10/15/99 14,470
18,000 5.24%, 10/19/99 17,953
10,000 5.41%, 10/19/99 9,973
25,000 Transamerica Financial Corp.
Senior Secured Notes,
Series 1999-1, 4.73%, 10/22/99 25,000
United Health Care,
5,000 5.53%, 12/1/99 5,000
70,000 5.57%, 12/1/99 70,000
----------
264,110
----------
MULTI-SELLER CONDUITS - 23.3%
Concord Minutemen Capital Co.,
114,000 5.35%, 10/4/99 113,949
50,000 5.39%, 10/14/99 49,903
20,000 5.42%, 10/22/99 19,937
47,500 5.47%, 11/18/99 47,158
20,000 5.31%, 11/19/99 19,859
Dakota Certificates Program,
43,300 5.26%, 10/26/99 43,144
37,500 5.27%, 11/2/99 37,327
30,000 6.05%, 1/14/00 29,481
49,028 Edison Asset Securitization,
5.22%, 10/8/99 48,979
Eiffel Funding LLC,
50,400 5.40%, 10/19/99 50,264
10,000 5.47%, 10/19/99 9,973
Falcon Asset Securitization,
4,200 5.33%, 10/12/99 4,193
16,163 5.35%, 10/12/99 16,137
Grand Funding Corp.,
24,400 5.40%, 10/19/99 24,334
25,000 6.03%, 1/5/00 24,607
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MULTI-SELLER CONDUITS - 23.3% (CONT'D.)
International Securitization Corp.,
$17,000 5.44%, 10/14/99 $ 16,967
30,000 5.42%, 10/20/99 29,915
19,903 5.50%, 12/1/99 19,720
Lexington Parker Capital,
20,000 5.47%, 11/22/99 19,844
70,000 6.03%, 1/25/00 68,669
69,000 6.02%, 2/18/00 67,430
Old Line Funding,
7,000 5.46%, 10/8/99 6,993
13,000 5.46%, 10/12/99 12,978
Park Avenue Receivables,
50,000 5.42%, 10/6/99 49,963
22,500 5.42%, 10/20/99 22,436
Pooled Account Receivables Corp.,
19,018 5.47%, 10/22/99 18,958
13,183 5.45%, 11/15/99 13,094
50,000 5.47%, 12/16/99 49,431
25,000 Quincy Capital Corp.,
5.37%, 10/19/99 24,933
20,000 Receivables Capital Corp.,
5.37%, 10/18/99 19,950
Sheffield Receivables Corp.,
52,450 5.70%, 10/1/99 52,450
30,000 5.42%, 10/20/99 29,915
1,150 5.43%, 10/21/99 1,147
Silver Tower U.S. Funding,
21,000 5.27%, 10/27/99 20,921
10,000 4.98%, 11/8/99 9,949
30,000 5.06%, 11/18/99 29,803
50,000 5.31%, 11/23/99 49,616
23,500 5.50%, 12/2/99 23,280
Variable Funding Capital Corp.,
20,000 5.37%, 10/14/99 19,961
8,000 5.52%, 10/25/99 7,971
----------
1,225,539
----------
NON-DEPOSITORY CREDIT
INSTITUTIONS - 0.4%
12,000 Finova Capital Corp.,
5.44%, 11/19/99 11,912
10,900 Monte Rosa Capital Corp.,
5.39%, 10/13/99 10,881
----------
22,793
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
NON-DEPOSITORY PERSONAL CREDIT
INSTITUTIONS - 2.8%
Heller Financial Corp.,
$20,000 5.47%, 10/26/99 $ 19,925
25,000 5.52%, 12/10/99 24,735
5,000 5.53%, 12/16/99 4,942
86,000 Homeside Lending,
5.75%, 10/1/00 86,000
12,000 Household Finance Co.,
5.41%, 10/1/99 12,000
----------
147,602
----------
SECURITIES ARBITRAGE - 12.0%
25,000 ABC Funding,
5.99%, 2/15/00 24,443
Conduit Asset Backed Security,
8,700 5.51%, 11/8/99 8,650
10,000 5.64%, 1/24/00 9,825
50,000 Crown Point Capital Co.,
5.43%, 10/20/99 49,857
50,000 Giro Funding Corp.,
5.80%, 10/1/99 50,000
22,500 Grayhawk Funding,
5.51%, 12/17/99 22,239
Links Finance Corp LLC,
7,500 5.27%, 10/25/99 7,474
10,000 5.27%, 10/29/99 9,960
10,111 5.44%, 11/5/99 10,058
K2 USA LLC,
10,000 4.99%, 10/15/99 9,981
6,388 4.96%, 10/18/99 6,373
9,000 5.59%, 1/18/00 8,852
10,000 5.56%, 1/28/00 9,822
18,000 5.96%, 3/29/00 17,480
MPF Ltd.,
28,000 5.29%, 10/15/99 27,943
40,000 5.42%, 10/25/99 39,857
35,500 5.46%, 10/28/99 35,356
2,200 5.34%, 10/29/99 2,191
24,505 5.37%, 10/29/99 24,403
Sigma Finance,
10,000 5.26%, 10/19/99 9,974
10,000 5.34%, 10/25/99 9,965
5,500 5.48%, 10/25/99 5,480
13,500 5.37%, 10/29/99 13,444
8,650 5.41%, 10/29/99 8,614
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
COMMERCIAL PAPER -
65.2% (CONT'D.)
SECURITIES ARBITRAGE - 12.0% (CONT'D.)
Trident Capital Financial Corp.,
$34,198 5.48%, 11/29/99 $ 33,895
50,000 5.51%, 12/7/99 49,495
43,000 5.23%, 12/13/99 42,556
30,000 5.39%,10/12/99 29,951
25,500 5.56%,10/13/99 25,453
30,400 5.41%,10/19/99 30,318
----------
633,909
----------
SINGLE-SELLER CONDUITS - 3.0%
Atlantis One Funding Corp.,
23,850 5.66%, 2/1/00 23,402
25,000 5.98%, 3/23/00 24,299
35,000 EFG Funding LLC,
5.53%, 12/14/99 34,608
Golden Funding Corp.,
13,000 5.40%, 10/4/99 12,994
13,500 5.41%, 10/14/99 13,474
50,000 Perry IV Funding
6.01%, 3/13/00 48,672
----------
157,449
----------
TRANSPORTATION EQUIPMENT- 1.8%
485 Ford Motor Credit Corp.,
5.83%, 4/14/00 485
General Motors Acceptance Corp.,
20,000 5.40%, 10/1/99 20,000
2,150 5.51%, 12/9/99 2,150
Harley Davidson Funding,
5,000 5.46%, 11/2/99 4,976
10,000 5.49%, 12/10/99 9,895
Textron Financial Corp.,
25,000 5.41%, 10/21/99 24,925
6,400 5.43%, 10/21/99 6,381
20,000 5.43%, 10/22/99 19,937
10,000 5.45%, 11/24/99 9,919
----------
98,668
----------
Total Commercial Paper
(cost $3,425,751) 3,425,751
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CORPORATE BONDS - 3.9%
Centauri Corp.,
$25,000 6.06%, 9/7/00 $ 25,000
25,000 6.10%, 9/7/00 25,000
K2 (USA) LLC,
1,000 5.58%, 6/5/00 1,000
5,000 5.60%, 6/15/00 5,000
5,000 5.70%, 6/30/00 5,000
Liberty Lighthouse US Capital, Series A
(First of America Bank LOC)
25,000 5.29%, 10/8/99 25,000
25,000 5.71%, 7/7/00 25,000
35,000 5.75%, 7/17/00 35,000
50,000 6.15%, 10/13/00 50,000
11,793 Marshall & Isley Bank,
6.15%, 9/28/00 11,784
----------
Total Corporate Bonds
(cost $207,784) 207,784
----------
EURO DOLLAR TIME DEPOSITS - 12.6%
50,000 Banco Popular, Puerto Rico,
5.625%, 10/1/99 50,000
73,991 Banque Brussels Lambert, London,
5.625%, 10/1/99 73,991
150,000 Credit Suisse First Boston,
Grand Cayman, 5.56%, 10/1/99 150,000
100,000 ING Bank, Grand Cayman,
5.59%, 10/1/99 100,000
132,220 KBC Bank, Grand Cayman,
5.56%, 10/1/99 132,219
150,000 Norddeutsche Landesbank
Girozentrale, 5.60%, 10/1/99 150,000
3,992 Toronto Dominion Bank,
Grand Cayman, 5.50%, 10/1/99 3,992
----------
Total Eurodollar Time Deposits
(cost $660,202) 660,202
----------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
INSURANCE FUNDING
AGREEMENTS - 0.9%
(cost $45,000)
General American Life Insurance Co.,
45,000 5.52%, 10/1/99 45,000
----------
MUNICIPAL INVESTMENTS - 7.1%
3,000 1800 Harrison Foundation,
5.00%, 10/6/99 3,000
7,740 ADE Investments LLC Loan
Program VRN, Series A, 5.38%, 10/7/99 7,740
11,755 BRCH Corp. VRDN, Series 1998A
(First of America Bank LOC)
5.35%, 10/5/99 11,755
12,265 California Housing Finance Agency,
Series 99, 5.35%, 10/7/99 12,265
4,350 Courtyards of Mackinaw LLC
Mortgage Revenue Bond, Series 1999H,
5.35%, 10/1/99 4,350
4,500 Elsmere, Kentucky Mubea, Inc.,
5.41%, 10/7/99 4,500
13,500 Flint, Michigan Hospital Building
Authority Loan Program Notes,
Series A 1997, Hurley Medical Center
(First of America Bank LOC)
5.62%, 10/7/99 13,500
22,800 Healthcare Network Properties LLC
Loan Program VRN, Series 1999A
(National City Bank LOC)
5.39%, 10/7/99 22,800
9,000 Hydro Quebec, Province of Quebec,
5.76%, 10/1/99 9,000
14,600 Integris Health, Inc. VRDN,
5.69%, 10/6/99 14,600
17,100 Johnson City Medical Center
Hospital, Inc., Baptist Plaza
Association Ltd., 4.93%, 10/7/99 17,100
3,085 KBL Capital Fund, Inc. Loan
Program Note, Series 1998,
5.38%, 10/7/99 3,085
30,000 Los Angeles County, California,
Pension Obligation, 5.45%, 10/7/99 30,000
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
$ 4,500 Malone College Project VRN,
5.39%, 10/6/99 $ 4,500
9,435 Municipal Electric Authority of Georgia,
5.30%, 10/7/99 9,430
12,270 New Jersey Economic Development
Authority Project VRDN, Series 1998,
5.64%, 10/1/99 12,265
18,600 Physicians Plus Medical Group, S.C.,
6.00%, 10/7/99 18,600
5,200 Schreiber Industrial Park-North Co.
VRDN, Series 1997B, MSNBC/CNBC
Project, 5.41%, 10/7/99 5,200
10,995 Seattle, Washington, Ltd. G.O. Bond,
Series 1996-C, 5.20%, 10/6/99 10,995
9,275 Stanislaus County, California Pension
Obligation, 5.48%, 10/1/99 9,275
9,245 Texas State Veterans Housing Fund
Tender Option Bond, 5.48%, 10/1/99 9,245
12,745 Virginia State HDA Multi-family
Housing Bond, Series 1996 CR-10T,
5.48%, 10/1/99 12,745
Virginia State Housing Development
Authority Bond, Commonwealth
Mortgage
117,880 Series 1998, 5.35%, 10/6/99 117,880
4,855 Series B, 5.45%, 10/7/99 4,855
1,830 Subseries 1997-5A, 5.35%, 10/6/99 1,830
3,050 Waukesha, Wisconsin, Health
System, Inc., 5.45%, 10/7/99 3,050
----------
Total Municipal Investments
(cost $373,565) 373,565
----------
Total Investments - 100.0%
(cost $5,250,690) 5,250,690
Liabilities less Other Assets - (0.0)% (1,017)
----------
NET ASSETS - 100.0% $5,249,673
==========
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
U.S. GOVERNMENT MONEY MARKET FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES - 98.6%
FANNIE MAE - 44.3%
FNMA Bonds
$ 6,000 5.04%, 4/6/00 $ 5,998
5,000 4.97%, 4/12/00 4,998
FNMA Bond FRN,
30,934 5.38%, 10/1/99 30,925
FNMA Discount MBS
19,000 5.19%, 10/1/99 19,000
25,000 5.22%, 10/1/99 25,000
10,660 4.84%, 12/1/99 10,573
45,000 5.36%, 12/1/99 44,591
FNMA Discount Notes
2,862 5.25%, 10/4/99 2,861
12,750 4.715%, 10/8/99 12,738
10,000 5.24%, 12/2/99 9,910
10,000 5.05%, 12/13/99 9,898
15,000 5.48%, 1/21/00 14,744
3,937 5.44%, 2/2/00 3,863
----------
195,099
----------
FEDERAL AGRICULTURE
MORTGAGE CORP. - 2.3%
10,000 Farmer Mac Discount Note,
5.07%, 10/4/99 9,996
----------
FEDERAL FARM CREDIT BANK - 3.6%
16,000 FFCB FRN,
5.35%, 12/1/99 15,999
----------
FEDERAL HOME LOAN BANK - 9.1%
5,000 FHLB Bond
5.09%, 3/22/00 5,000
10,000 FHLB Discount Note,
5.02%, 2/1/00 9,836
FHLB FRN
10,000 5.22%, 11/12/99 9,995
15,000 5.56%, 4/28/00 14,997
----------
39,828
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
FREDDIE MAC - 35.4%
FHLMC Discount Notes
$ 9,924 5.07%, 10/4/99 $ 9,920
35,600 5.24%, 10/15/99 35,527
2,050 5.21%, 11/5/99 2,040
20,000 5.48%, 1/14/00 19,680
20,000 5.36%, 1/21/00 19,666
5,000 5.46%, 1/28/00 4,910
15,000 5.53%, 2/1/00 14,716
17,000 5.54%, 2/3/00 16,673
8,519 5.45%, 2/15/00 8,342
8,000 5.45%, 2/25/00 7,822
10,000 4.18%, 3/2/00 9,795
6,706 5.19%, 6/6/00 6,465
----------
155,556
----------
OVERSEAS PRIVATE INVESTMENT CORP. - 3.9%
17,100 FRN, 5.40%, 10/6/99 17,100
----------
Total U.S. Government Agencies
(cost $433,578) 433,578
----------
REPURCHASE AGREEMENTS - 11.8%
20,000 ABN-AMRO, dated 9/30/99, repurchase
price $20,003 (Colld. by U.S. Government
Securities), 5.50%, 10/1/99 20,000
32,056 Lehman Brothers, Inc., dated 9/30/99,
repurchase price $32,061 (Colld. by U.S.
Government Securities), 5.35%, 10/1/99 32,056
----------
Total Repurchase Agreements
(cost $52,056) 52,056
----------
Total Investments - 110.4%
(cost $485,634) 485,634
Liabilities less Other Assets - (10.4)% (45,641)
----------
NET ASSETS - 100.0% $439,993
==========
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
U.S. GOVERNMENT SELECT MONEY MARKET FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES - 106.8%
FEDERAL FARM CREDIT BANK - 5.1%
FFCB Discount Notes,
$12,507 5.49%, 3/15/00 $ 12,190
FFCB Discount Notes FRN,
7,000 5.10%, 10/11/99 6,997
----------
19,187
----------
FEDERAL HOME LOAN BANK - 99.0%
FHLB Bonds
25,000 5.16%, 3/8/00 24,996
20,000 4.97%, 4/20/00 19,994
FHLB Discount Notes
10,000 5.23%, 10/6/99 9,993
20,000 5.18%, 10/20/99 19,945
10,000 5.20%, 11/24/99 9,922
134,646 5.17%, 10/1/99 134,646
5,000 4.70%, 1/19/00 4,928
10,000 5.46%, 1/28/00 9,820
10,000 5.32%, 1/28/00 9,824
25,000 5.39%, 2/2/00 24,536
5,000 5.45%, 2/25/00 4,889
10,000 5.53%, 3/8/00 9,756
FHLB FRN
25,000 5.61%, 10/1/99 24,989
25,000 5.63%, 10/1/99 24,985
10,000 5.56%, 10/1/99 9,997
15,000 5.36%, 10/5/99 14,999
5,000 5.32%, 10/6/99 5,001
10,000 5.22%, 11/12/99 9,995
----------
373,215
----------
SALLIE MAE FRN - 2.7%
10,000 5.50%, 10/5/99 10,000
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
Total U.S. Government Agencies - 106.8%
(cost $402,402) $402,402
----------
Total Investments - 106.8%
(cost $402,402) 402,402
Liabilities less Other Assets - (6.8)% (25,517)
----------
NET ASSETS - 100.0% $376,885
=========
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 99.4%
Alabama - 1.7%
$ 1,800 Ashland City Industrial Development
Board IDR VRDN (AMT), Russell Corp.
Project (SunTrust Banks LOC),
3.90%, 10/7/99 $ 1,800
2,575 Columbia City Industrial Development
Board IDR VRDN (AMT), Russell Corp.
Project (SunTrust Banks LOC),
3.90%, 10/7/99 2,575
2,575 Geneva County Industrial Development
Board IDR VRDN (AMT), Russell Corp.
Project (SunTrust Banks LOC),
3.90%, 10/7/99 2,575
700 Greenville City IDR VRDN,
AlliedSignal Project, 3.95%, 10/7/99 700
5,000 Lauderdale County & Florence Alabama
Health Care VRDN, Coffee Health Group B,
(MBIA Insured), 3.65%, 10/7/99 5,000
2,800 McIntosh City Industrial Development
Board Environmental Improvement
Revenue Refunding VRDN, Series E
(AMT), Ciba Specialty Chemical Corp.,
4.05%, 10/1/99 2,800
18,965 Mobile Industrial Development Board
Dock & Wharf VRDN, Holnam, Inc.
Project, Series B, (Wachovia Bank LOC),
3.70%, 10/7/99 18,965
2,300 Selma City IDR VRDN, Series A (AMT),
Meadowcraft, Inc. Project (Bank
of America Corp. LOC), 3.95%, 10/7/99 2,300
1,000 Stevenson Industrial Development Board
Environmental Improvement Revenue
Bond (AMT), Mead Corp. Project
(Soc Gen LOC), 4.05%, 10/1/99 1,000
----------
37,715
----------
ARIZONA - 1.2%
1,250 Apache County IDR VRDN, Series 1996
(AMT), Imperial Components, Inc. Project,
(Harris Trust & Savings
Bank LOC), 3.95%, 10/7/99 1,250
7,300 Cochise County Solid Waste Disposal
PCR VRDN, Series A (AMT), Arizona
Electric Power Project, 3.65%, 3/1/00 7,300
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
ARIZONA - 1.2% (CONT'D.)
$9,545 Maricopa County IDA Hospital
Revenue Bonds, Mayo Foundation,
Morgan Stanley Muni Floater Certificates,
Series 1998-103, 3.85%, 10/7/99 $ 9,545
9,500 Salt River Agricultural Project Bonds,
Improvement & Power District,
3.60%, 3/7/00 9,500
----------
27,595
----------
ARKANSAS - 0.5%
5,875 Arkansas State Development Finance
Authority Home Mortgage Revenue Bond,
Series PT-257 (AMT), 3.10%, 1/13/00 5,875
3,250 Lowell City IDR VRDN (AMT), Little Rock
Newspapers, Inc. Project (Bank of New
York LOC), 3.90%, 10/7/99 3,250
2,050 West Memphis City IDR VRDN (AMT),
Proform Co. LLC Project (First Bank LOC),
3.90%, 10/7/99 2,050
----------
11,175
----------
CALIFORNIA - 0.6%
200 California State G.O. Bond,
Series CR-52 (FGIC Insured),
3.67%, 10/7/99 200
800 California State Short Option Period Bond,
Series CR-153D (FGIC Insured)
3.67%, 10/7/99 800
8,500 Irvine Ranch Consolidated Water
Districts 2, 102, 103, 106, 203 & 206
VRDN, Series B (Morgan Guaranty Trust
LOC), 3.60%, 10/1/99 8,500
3,840 Sacramento City Finance Authority Lease
Revenue Refunding Bonds, Paine Webber
Municipal Trust Receipts, Series 1997
SAK 18 (AMBAC Insured), 3.95%, 10/7/99 3,840
----------
13,340
----------
COLORADO - 3.3%
City and County of Denver
Airport System Subordinate Revenue Bonds,
Series 1997A (AMT)
3,500 3.35%, 10/8/99 3,500
3,300 3.25%, 1/26/00 3,300
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
COLORADO - 3.3% (CONT'D.)
$ 6,000 Colorado State Educational & Cultural
Facility Authority Revenue VRDN,
St. Mary's Academy Project 1999
(Bank One LOC), 3.90%, 10/7/99 $ 6,000
10,800 Colorado State Health Facility Authority
Revenue VRDN, Catholic Health Initiatives,
Series B, 3.85%, 10/7/99 10,800
7,000 Colorado State Health Facility Authority
Revenue Bonds, North Colorado Medical
Center, Series 1990 (MBIA Insured),
3.80%, 10/7/99 7,000
10,000 Colorado State HFA Multi-Family Revenue
Bond, Series A, 3.84%, 10/7/99 10,000
9,900 Colorado State HFA SFM VRDN, Series C-1,
Bank of America Trust Certificate (AMT),
3.92%, 10/7/99 9,900
4,000 Colorado State HFA VRDN (AMT),
Metal Sales Manufacturing Corp. Project
(Star Bank LOC), 3.95%, 10/7/99 4,000
8,555 Colorado State Student Obligation Bond
Authority, Series A (AMT) 3.85%, 10/7/99 8,555
8,500 Intermountain Power Agency
Power Supply Revenue Goldman Sachs CP,
Series B-1, 3.25%, 10/8/99 8,500
2,000 Pitkin County IDR, Series B (AMT),
Aspen Skiing Project (Bank One LOC),
4.00%, 10/1/99 2,000
----------
73,555
----------
DELAWARE - 0.6%
3,200 Delaware State Economic Development
Authority IDR VRDN, Series 1998 (AMT),
C&C Family L.P. (PNC Bank LOC),
3.95%, 10/7/99 3,200
1,325 Delaware State Economic Development
Authority PCR VRDN, AlliedSignal Corp.
Project, 3.95%, 10/7/99 1,325
7,500 Delaware State Health Facility Authority
Revenue Bonds, Beebe Medical Center
Project, (Colld. by U.S. Government
Securities), 8.50%, 6/1/00 7,858
----------
12,383
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 2.2%
$30,500 District of Columbia Metropolitan Airport
Authority Passenger Facility Flexible
Term Note (AMT) (Bank of America LOC),
3.50%, 11/19/99 $30,500
6,700 District of Columbia VRDN,
American University Project 1985
(AMBAC Insured), 3.80%, 10/7/99 6,700
12,590 District of Columbia Water & Sewer
Revenue Bonds, Citicorp Eagle Trust
8121A, 3.84%, 10/7/99 12,590
----------
49,790
----------
FLORIDA - 3.1%
4,000 ABN-AMRO MuniTops
Florida Board of Education Capital
Outlay Revenue Bonds (ABN-AMRO
LOC), (FSA Insured), 3.91%, 10/7/99 4,000
3,785 Duval County HFA Mortgage Revenue
VRDN, Series 3A (AMT), Clipper Trust
Certificate, 3.98%, 10/7/99 3,785
10,395 Florida State Board of Education Capital
Outlay Eagle Trust, Series 1989 A,
3.84%, 10/7/99 10,395
2,000 Florida State Board of Education VRDN,
Series 1993E, Eagle Trust, 3.84%, 10/7/99 2,000
4,400 Florida State HFA Homeowner
Mortgage Bonds, Series 2
(AMT) (MBIA Insured), 3.95%, 10/7/99 4,400
7,145 Hillsborough County IDR VRDN,
Weekly Option Period, Series 4 (MBIA
Insured), 4.02%, 10/7/99 7,145
4,800 Jacksonville PCR Refunding Bonds,
Series 1994, Florida Power & Light Project,
3.25%, 10/12/99 4,800
1,900 Miami Dade County IDR VRDN
(AMT), Fine Art Lamps Project (SunTrust
Banks LOC), 3.90%, 10/2/99 1,900
2,000 Ocean Highway & Port Authority Revenue
Bonds (AMT) (ABN-AMRO LOC),
3.90%, 10/7/99 2,000
3,000 Orange County Educational Facilities
Authority VRDN, Rollins College Project
(Bank of America Corp. LOC),
3.80%, 10/7/99 3,000
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
99.4% (CONT'D.)
FLORIDA - 3.1% (CONT'D.)
$ 4,340 Orange County HFA, Series 1987-A,
Citicorp Eagle Trust, 3.87%, 10/7/99 $ 4,340
5,010 Sunshine State Government Finance
Authority CP Revenue Notes, Series A
(AMT), Government Finance Program
(FGIC Insured), 3.30%, 10/22/99 5,010
16,990 Sunshine State Government Finance
Commission, Series 1986
(AMBAC Insured), 3.25%, 10/22/99 16,990
----------
69,765
----------
GEORGIA - 2.8%
6,800 Atlanta Housing Authority
Multi-Family VRDN, Series 1999 (AMT),
Village of E. Lake Phase II
(Bank of America Corp. LOC),
3.90%, 10/7/99 6,800
10,000 Bartow County Development Authority
PCR Bonds, Series 2 (AMT), Georgia Power
Co. Bowen Project, 3.75%, 1/26/00 10,000
3,000 Clayton County Housing Authority
Revenue VRDN (AMT), Williamsburg South
Apartments Project (PNC Bank LOC),
3.90%, 10/7/99 3,000
5,300 Clayton County IDR VRDN (AMT),
Blue Circle Aggregates, Inc. Project
(Denmark Danske Bank LOC),
3.90%, 10/7/99 5,300
5,200 DeKalb County Housing Authority
Revenue VRDN, Series 1995 (AMT), Cedar
Creek Apartment Project (General Electric
Capital Corp. LOC), 3.95%, 10/7/99 5,200
10,000 Fulton County G.O. Bonds, Series 9,
Citicorp Eagle Trust, 3.50%, 1/27/00 10,000
Georgia HFA Conventional Mortgage
Tender Option Bond, Mortgage License
(AMT) (FHA Insured)
6,325 Series C, 3.30%, 12/1/99 6,325
910 Series D, 3.30%, 12/1/99 910
1,800 Gwinnett County IDR VRDN, Series
1998 (AMT), Network Publications,
Inc. (Bank ofAmerica Corp. LOC),
3.90%, 10/7/99 1,800
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
GEORGIA - 2.8% (CONT'D.)
$ 4,000 Hapeville Development Authority IDR
VRDN, Series 1985, Hapeville Hotel Project,
(Deutsche Bank LOC), 3.95%, 10/1/99 $ 4,000
4,150 Henry County Development Authority
Revenue Bonds, Series 1997 (AMT), Atlas
Roofing Corp. Project (SunTrust Banks
LOC), 3.90%, 10/7/99 4,150
5,000 Savannah City Economic Development
Authority Revenue VRDN, Series 1997
(AMT), Kaolin Terminals Project
(Bank of America Corp. LOC),
3.90%, 10/7/99 5,000
----------
62,485
----------
HAWAII - 0.2%
5,000 Hawaii State Department of Budget &
Finance, Series A (AMT), Hawaiian
Electric Co. Project (MBIA Insured),
3.90%, 10/7/99 5,000
----------
ILLINOIS - 10.5%
3,500 Arlington Heights IDR VRDN, Series 1997
(AMT), 3E Graphics and Printing Project
(Harris Trust & Savings Bank LOC),
3.95%, 10/7/99 3,500
9,580 Aurora City Rental Housing Revenue
Bonds, Series PA-328, Fox Valley Project
(Merrill Lynch Gtd.), 3.99%, 10/7/99 9,580
7,000 Bolingbrook Multi-Family Housing
Redevelopment Revenue Refunding VRDN,
Series A (AMT), Amberton Apartments,
(LaSalle National Bank LOC),
3.85%, 10/7/99 7,000
2,655 Chicago City IDR, Series B (AMT),
Guernsey Bel, Inc. Project (LaSalle National
Bank LOC), 3.84%, 10/7/99 2,655
9,495 Chicago City Public Building Commission,
Series A PT-155, P-Floats (MBIA Insured),
3.10%, 10/21/99 9,495
3,885 Chicago City Sales TRB, Series PCR-8
(FGIC Insured), 4.02%, 10/7/99 3,885
10,000 Chicago City VRDN Certificates, Series M
(FGIC Insured), 3.62%, 7/13/00 10,000
7,000 Chicago Midway Airport Revenue VRDN,
Second Lien, Series A (AMT)
(MBIA Insured), 4.10%, 10/1/99 7,000
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
ILLINOIS - 10.5% (CONT'D.)
$ 5,500 Chicago Midway Airport Revenue VRDN,
Series 1995 (AMT), American Trans Air, Inc.
Project (Bank One LOC), 3.95%, 10/7/99 $ 5,500
12,000 Chicago School Reform Board G.O.
Bonds, Series 1996 (MBIA Insured),
Bank of America Variable Rate Certificates,
3.92%, 10/7/99 12,000
3,750 Crestwood IDR Bond (AMT), GMG
Warehouse LLC Project (LaSalle National
Bank LOC), 3.84%, 10/7/99 3,750
1,600 Des Plaines City IDR VRDN, Series 1996
(AMT), Finzer Roller, Inc. Project
(Harris Trust & Savings Bank LOC),
3.95%, 10/7/99 1,600
5,300 DuPage County Water Commission Water
Revenue Bonds, Citicorp Eagle Trust,
3.84%, 10/7/99 5,300
3,550 Frankfort City IDR, Series 1996 (AMT),
Bimba Manufacturing Co. Project
(Harris Trust & Savings Bank LOC),
3.95%, 10/7/99 3,550
4,375 Fulton County IDR VRDN, Series 1998
(AMT), Drives, Inc. Project (Harris Trust
& Savings Bank LOC), 3.95%, 10/7/99 4,375
650 Illinois State Development Finance
Authority Economic Development Revenue
VRDN (AMT), D.E. Akin Seed Project
(Bank One LOC), 3.95%, 10/7/99 650
2,365 Illinois State Development Finance
Authority IDR VRDN (AMT), Bimba
Manufacturing Co. Project (Harris Trust &
Savings Bank LOC), 3.95%, 10/7/99 2,365
6,400 Illinois State Development Finance
Authority Local Government Finance
Program, Series A (AMBAC Insured),
3.80%, 10/7/99 6,400
4,100 Illinois State Development Finance
Authority IDR VRDN, Series 1997 (AMT),
Ciccone Food Products Project (Harris
Trust & Savings Bank LOC),
3.95%, 10/7/99 4,100
5,080 Illinois State Development Finance
Authority IDR VRDN, Series A (AMT),
General Converting Project (LaSalle
National Bank LOC), 3.84%, 10/7/99 5,080
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
ILLINOIS - 10.5% (CONT'D.)
$ 2,265 Illinois State Development Finance
Authority IDR VRDN, Series A (AMT),
Randall Metals Corp. Project (LaSalle
National Bank LOC), 4.05%, 10/7/99 $ 2,265
3,900 Illinois State Development Finance
Authority IDR VRDN (AMT), Astron
Midwestern Inc. Project, (American
National Bank LOC), 4.10%, 10/7/99 3,900
4,400 Illinois State Development Fnance
Authority IDR VRDN (AMT), Touhy LP
Project (LaSalle National Bank LOC),
3.84%, 10/7/99 4,400
4,545 Illinois State Development Finance
Authority Revenue VRDN, Series 1999
(AMT), Elite Manufacturing Technology,
Inc. Project (Harris Trust & Savings
Bank LOC), 3.95%, 10/7/99 4,545
5,950 Illinois State Development Finance
Authority Revenue VRDN, Enterprise
Office Project (Colld. by U.S. Government
Securities), 3.80%, 12/1/99 5,950
5,500 Illinois State Development Finance
Authority Revenue VRDN (AMT), Flying
Food Fare, Inc. Project (Bank of America
Corp. LOC), 3.95%, 10/7/99 5,500
4,160 Illinois State Development Finance
Authority Revenue VRDN (AMT), Olive
Can Co. Project (LaSalle National Bank
LOC), 3.84%, 10/7/99 4,160
1,500 Illinois State Development Finance
Authority Revenue VRDN, Series 1994,
WBEZ Alliance Project, Series 1994
(LaSalle National Bank LOC),
3.80%, 10/7/99 1,500
3,400 Illinois State Educational Facilities
Authority VRDN, Cultural Pooled Finance
Project, (American National Bank LOC),
3.80%, 10/7/99 3,400
9,000 Illinois State Health Facilities Authority
Revenue VRDN, Series 1985B, Evanston
Hospital Corp., 3.65%, 8/15/00 9,000
14,000 Illinois State Health Facilities Authority
VRDN, Series 1993, Resurrection Health
Care System, 3.60%, 11/24/99 14,000
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
99.4% (CONT'D.)
ILLINOIS - 10.5% (CONT'D.)
$ 1,500 Illinois State Health Facilities Authority
VRDN, Series A (FSA Insured), Resurrection
Health Care System, 3.95%, 10/1/99 $ 1,500
15,000 Illinois State Health Facilities Authority
VRDN, Series B (FSA Insured), Resurrection
Health Care System, 3.80%, 10/7/99 15,000
6,425 Illinois State HDA Revenue VRDN,
Series B-2 (AMT), Homeowner Mortgage,
3.25%, 4/27/00 6,425
5,480 Illinois State HDA VRDN, Subseries A-2
(AMT), Homeowner Mortgage,
3.10%, 1/20/00 5,480
7,500 Ladd Village IDR VRDN, Series 1996
(AMT), O'Neal Metals, Inc. Project (Bank
of America Corp. LOC), 3.95%, 10/7/99 7,500
2,000 Macon County Adjustable Rate Demand
Revenue Bond, Series 1999 (AMBAC
Insured), Milikin University,
3.80%, 10/7/99 2,000
1,575 Naperville G.O. Bonds, Series A,
4.00%, 12/1/99 1,577
2,710 Niles Village IDR VRDN, Series 1996
(AMT), Lewis Spring & Manufacturing Co.
Project (Harris Trust & Savings Bank LOC),
3.95%, 10/7/99 2,710
2,700 Rockford City IDR, Series 1998 (AMT),
Ring Can Corp. Project (SunTrust Banks
LOC), 3.90%, 10/7/99 2,700
2,250 Romeoville City IDR, Series 1997 (AMT),
Metropolitan Industries, Inc. Project
(Harris Trust & Savings Bank LOC),
3.95%, 10/7/99 2,250
6,000 Savanna City IDR VRDN, Series 1994
(AMT), Metform Corp. Project
(Bank One LOC),
3.90%, 10/7/99 6,000
5,800 St. Clair County IDR VRDN (AMT), Stellar
Manufacturing Project (Bank of America
Corp. LOC), 3.95%, 10/7/99 5,800
9,000 Will County Solid Waste Disposal Revenue
Bond (AMT), BASF Corp. Project,
4.10%, 10/1/99 9,000
----------
234,347
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
INDIANA - 2.5%
$ 2,790 Anderson City Economic Development
VRDN, Series 1996 (AMT), Gateway
Village Project (FHLB LOC),
3.85%, 10/7/99 $ 2,790
2,925 City of Indianapolis
Citizens Gas & Coke Utility,
3.60%, 1/25/00 2,925
2,200 Ft. Wayne Hospital Authority VRDN,
Series 1985 D, Park View Hospital Program
(Bank of America LOC),
3.80%, 10/7/99 2,200
1,500 Greencastle City IDR VRDN, Series 1996
(AMT), Crown Equipment Corp. Project
(Key Bank LOC), 3.95%, 10/7/99 1,500
2,840 Hammond City Economic Devlopment
VRDN, Series 1996 A (AMT), Annex at
Douglas Point Project (FHLB LOC),
3.85%, 10/7/99 2,840
Indiana Development Finance Authority
IDR VRDN (AMT), Red Gold, Inc. Project
(Harris Trust & Savings Bank LOC)
4,600 Series 1994 A, 3.95%, 10/7/99 4,600
2,900 Series 1994 B, 3.95%, 10/7/99 2,900
1,600 Indiana State Development Finance
Authority Revenue VRDN, Indiana
Historical Society, Inc. Project (Bank One
LOC), 3.80%, 10/7/99 1,600
5,000 Indiana State Development Finance
Authority (AMT), Facility Revenue
Refunding Bonds, 3.90%, 10/7/99 5,000
17,000 Indiana Transportation Authority Highway
Revenue Bonds, Citicorp Eagle Trust,
3.50%, 1/27/00 17,000
1,000 Indianapolis Airport Authority
Refunding Bonds, Series A (AMT)
(FGIC Insured), 4.50%, 7/1/00 1,005
3,600 Jasper County PCR VRDN,
Series 1988-A, Northern Indiana Public
Service Project, 3.70%, 3/10/00 3,600
2,000 Jasper County PCR, Series 1988-D,
Northern Indiana Public Service Project,
3.25%, 10/13/99 2,000
6,000 Madison Economic Development Authority
Revenue Bonds, Arvin Sango, Inc. Project
(Bank One LOC), 4.00%, 10/7/99 6,000
----------
55,960
----------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
IOWA - 1.4%
$12,590 Iowa Finance Authority SFM Program
Bonds, Series B (AMT) (GNMA/FNMA
Insured), 3.00%, 2/23/00 $12,590
1,100 Iowa Finance Authority Solid Waste
Disposal Revenue VRDN, Series 1993-A
(AMT), Cedar River Paper Co. Project
(Union Bank of Switzerland LOC),
4.10%, 10/1/99 1,100
Iowa Finance Authority Waste Disposal
Revenue VRDN (AMT),
Cedar River Paper Co. Project
(Union Bank of Switzerland LOC),
3,700 Series 1994-A, 4.10%, 10/1/99 3,700
9,900 Series 1995-A, 4.10%, 10/1/99 9,900
4,300 Series 1996-A, 4.10%, 10/1/99 4,300
----------
31,590
----------
KANSAS - 0.5%
6,180 Kansas City Leavenworth & Lenexa
Mortgage Revenue FRN, Series A-31,
4.00%, 10/7/99 6,180
1,000 Olathe IDR VRDN Bond, Series A (AMT),
Diamant Boart, Inc. Project (Deutsche
Bank A.G. LOC), 3.95%, 10/7/99 1,000
3,000 Topeka Temporary Notes, Series 1999 A,
3.50%, 6/1/00 3,004
1,980 Wichita Water & Sewer Utilities Revenue
Bonds (FGIC Insured), 6.50%, 10/1/99 1,980
----------
12,164
----------
KENTUCKY - 3.3%
5,701 Carroll County Solid Waste Disposal
Revenue VRDN (AMT), North American
Stainless Project (Banco Bilbao Vizcaya
LOC), 4.25%, 10/7/99 5,701
2,795 Clark County Industrial Building IDR
VRDN, Series 1996 (AMT), Bluegrass Art
Cast Project (Bank One LOC),
3.95%, 10/7/99 2,795
Daviess County Waste Disposal Facilities
IDR VRDN (AMT), Scott Paper Co.
Project (Kimberly-Clark Corp. Gtd.)
14,600 Series 1993 A, 3.90%, 10/7/99 14,600
1,200 Series 1994 A, 3.90%, 10/7/99 1,200
100 Series 1994 B, 3.90%, 10/7/99 100
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
KENTUCKY - 3.3% (CONT'D.)
$10,000 Kentucky Association of Counties
Advance Revenue Bond, Cash Flow
TRAN, 4.00%, 6/30/00 $10,039
6,000 Kentucky Housing Corp. Housing Revenue
Bonds, Series C (AMT), 3.20%, 12/31/99 6,000
16,000 Kentucky Interlocal School Transportation
Association TRAN, 4.00%, 6/30/00 16,057
17,000 Louisville & Jefferson Counties VRDN,
Series A-1 (AMT), Regional Airport
Authority System (National City Bank of
Louisville LOC), 3.90%, 10/7/99 17,000
----------
73,492
----------
LOUISIANA - 1.6%
2,000 Ascension Parish County Revenue
VRDN (AMT), BASF Corp. Project
(BASF Corp. Gtd.), 4.10%, 10/1/99 2,000
16,810 De Soto Parish PCR Refunding, Series A,
Central Louisiana Electric Co.
(Westdeutsche Landesbank LOC),
3.60%, 10/7/99 16,810
3,550 Louisiana Public Facilities Authority
VRDN, College & University Equipment
Project (FGIC Insured), 3.80%, 10/7/99 3,550
1,400 Louisiana Public Facility Authority
Hospital Revenue Bonds, Series 1993
(AMBAC Insured), Willis-Knighton
Medical Center, 4.00%, 10/7/99 1,400
6,900 Louisiana State G.O. Bonds, Series 1994 A
(AMBAC Insured), Citicorp Eagle Trust,
3.84%, 10/7/99 6,900
4,000 South Louisiana Port Commission
Revenue VRDN, Series 1997 (AMT),
Holnam, Inc. Project (First Wachovia LOC),
3.85%, 10/7/99 4,000
----------
34,660
----------
MAINE - 0.8%
2,000 Fort Fairfield Revenue Bond
(AMT), Atlantic Custom Processors
(PNC Bank LOC), 3.95%, 10/7/99 2,000
5,000 Maine Public Utilities Finance Bank
Revenue VRDN, Series 1996 (AMT), Maine
Public Service Co. Project (Bank of New
York LOC), 3.90%, 10/7/99 5,000
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
99.4% (CONT'D.)
MAINE - 0.8% (CONT'D.)
$9,995 Maine State Housing Authority Variable
Rate COP, Series B (AMT), 3.97%, 10/7/99 $ 9,995
----------
16,995
----------
MARYLAND - 1.2%
2,100 Baltimore City Economic Development
VRDN, Series 1985, Mt. Washington
Pediatric Hospital, Inc. (Mellon Bank
LOC), 4.00%, 10/7/99 2,100
1,000 Baltimore County Economic
Development FRN, Board of
Commissioners Notre Dame Preparatory
School Project (Crestar Bank LOC), 1,000
3.80%, 10/7/99
3,280 Cecil County Economic Development
VRDN (AMT), Steel Techs, Inc. Facilities
(PNC Bank LOC), 3.95%, 10/7/99 3,280
7,811 Maryland State Community Development
Administration Bonds, Series PT-12,
Merrill P-Floats, 3.77%, 10/1/99 7,811
3,995 Maryland State Community Development
Administration Bonds, Series PT-284,
3.85%, 8/24/00 3,995
2,800 Maryland State Economic Development
Corp. VRDN (AMT), Unisite Design, Inc.
(Mellon Bank LOC), 4.10%, 10/7/99 2,800
3,000 Maryland State IDA VRDN, Townsend
Culinary, Inc. Project (SunTrust Banks
LOC), 3.90%, 10/7/99 3,000
2,030 Washington Suburban Sanitary District
General Construction Bond, Series I
(Colld. by U.S. Government Securities),
6.90%, 6/1/00 2,103
----------
26,089
----------
MASSACHUSETTS - 1.1%
3,400 Commonwealth of Massachusetts G.O.
Weekly Refunding Bonds, 3.75%, 10/7/99 3,400
5,000 Massachusetts Bay Transportation
Authority Revenue Bond, Series A
(Colld. by U.S. Government Securities)
7.00%, 3/1/00 5,083
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MASSACHUSETTS - 1.1% (CONT'D.)
$ 5,500 Massachusetts State Development Finance
Agency, Waste Management, Inc. Project
(SunTrust Banks LOC),
3.80%, 10/7/99 $ 5,500
3,100 Massachusetts State HFA SFM Revenue
Notes, Series A, 3.60%, 6/1/00 3,100
1,655 Massachusetts State HFA VRDN, Series
1996-5A (AMT), Clipper Trust Certificate
(AMBAC Insured), 3.98%, 10/7/99 1,655
4,875 Massachusetts State HFA VRDN, Series
PA-132 (AMT), Harbor Point Project
(AMBAC Insured), 3.75%, 10/7/99 4,875
----------
23,613
----------
MICHIGAN - 3.1%
6,000 Jackson County Economic Development
Corp. VRDN (AMT), Production Saw &
Machine Co., (Comerica Bank LOC)
3.85%, 10/7/99 6,000
12,495 Michigan State Building Development
Authority Revenue COP, Series 81,
Morgan Stanley Floating Rate
Trust Certificates, 3.84%, 10/7/99 12,495
16,000 Michigan State HDA, Series B (AMT),
3.00%, 12/1/99 16,000
3,000 Michigan Strategic Fund Limited
Obligation Revenue VRDN, Dirksen Screw
Products Co. Project (Bank One LOC),
3.85%, 10/7/99 3,000
13,000 Michigan Strategic Fund Limited
Obligation Revenue VRDN (AMT),
Dow Chemical Co. Project, 4.10%, 10/1/99 13,000
5,170 Michigan Strategic Fund Limited
Obligation Revenue VRDN (AMT), GT
USA LLC Project (Comerica Bank LOC),
3.85%, 10/7/99 5,170
1,990 Michigan Strategic Fund Limited
Obligation Revenue VRDN (AMT), Kruger
Commodities, Inc. Project (Harris Trust &
Savings Bank LOC), 3.95%, 10/7/99 1,990
5,000 Michigan Strategic Fund Limited
Obligation Revenue VRDN (AMT), Serta
Restokraft Project (Comerica Bank LOC),
3.85%, 10/7/99 5,000
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MICHIGAN - 3.1% (CONT'D.)
$ 900 Midland County Economic Development
Corp. VRDN, Series 1993A (AMT), Dow
Chemical Corp. Project, 4.05%, 10/1/99 $ 900
6,500 Oakland County Economic Development
Corp. Limited Obligation Revenue VRDN
(AMT), Richard & Tool Die Corp.
Project (Comerica Bank LOC),
3.85%, 10/7/99 6,500
----------
70,055
----------
MINNESOTA - 0.6%
11,290 Minnesota State HFA SFM Revenue Bonds,
Series 1998 F (AMT), 3.55%, 8/14/00 11,290
3,060 Stearns County Housing &
Redevelopment Authority VRDN (AMT),
Cold Spring Granite Co. Project
(U.S. Bank LOC), 4.00%, 10/7/99 3,060
----------
14,350
----------
MISSISSIPPI - 1.1%
12,485 Mississippi Gulf Coast Waste Water
Treatment Revenue Refunding VRDN,
Merlot Series 99c698 (MBIA Insured),
3.95%, 10/7/99 12,485
8,965 Mississippi Home Corp., Series A (AMT),
PT-173, 3.90%, 10/7/99 8,965
3,250 Mississippi State SFM Revenue Bonds,
Series G-CL5 (AMT), P-Floats PT-146,
3.90%, 10/7/99 3,250
----------
24,700
----------
MISSOURI - 2.3%
2,000 Missouri Development Finance
Board Infrastructure Facilities IDR Bond,
Series A, Science City Union Station
(Canadian Imperial Bank of Commerce
LOC), 4.10%, 12/1/99 2,003
12,366 Missouri Environmental Improvement
& Energy Revenue Refunding VRDN,
K C Power & Light Co. Project,
3.65%, 3/13/00 12,366
10,000 Missouri Health & Educational Facilities
Authority VRDN, Series A, Missouri Pooled
Hospital Loan Program, 3.80%, 10/7/99 10,000
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MISSOURI - 2.3% (CONT'D.)
$ 500 Missouri Higher Education Loan Authority
Student Loan Revenue VRDN, Series
1990A (AMT) (National Westminster
PLC LOC), 3.90%, 10/7/99 $ 500
1,800 Missouri Higher Education Loan Authority
VRDN, Series B (AMT) (MBIA Insured),
3.95%, 10/7/99 1,800
8,900 Missouri Higher Education Loan Authority
VRDN, Series B (AMT) (National
Westminster LOC), 3.90%, 10/7/99 8,900
4,420 Missouri Housing Development VRDN,
Series A (AMT), Merrill P-Floats PA-116,
3.85%, 10/7/99 4,420
8,000 St. Louis County IDA Multifamily Housing
Revenue VRDN (AMT), Whispering Lakes
Apartment Project (Mercantile Bank of St.
Louis LOC), 3.80%, 10/7/99 8,000
3,000 St. Louis General Fund TRAN, Series
1999-2000, 4.00%, 6/30/00 3,016
----------
51,005
----------
MONTANA - 0.2%
Montana State Board of Housing P-Floats
3,080 Series PA-158, 3.90%, 10/7/99 3,080
2,365 Series PT-87, 3.90%, 10/7/99 2,365
----------
5,445
----------
NEBRASKA - 0.3%
1,700 Nebraska Investment Finance Authority
SFM Revenue FRN, Series A3,
4.00%, 10/7/99 1,700
4,100 Omaha Public Power District
Nebraska Electric Revenue Bonds,
Series A, 4.30%, 2/1/00 4,108
----------
5,808
----------
NEVADA - 0.9%
1,710 Clark County Public Safety G.O. Bonds,
4.00%, 2/1/00 1,715
12,500 Nevada State Department Business &
Industry PCR VRDN (AMT), Barrick
Goldstrik Mines (Royal Bank of
Canada LOC), 3.85%, 10/7/99 12,500
6,200 Nevada Municipal Bond Trust Receipts
Certificates, Series 1997-SGB 31
(FGIC Insured), 3.87%, 10/7/99 6,200
----------
20,415
----------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
99.4% (CONT'D.)
NEW JERSEY - 0.5%
$10,000 Jersey City G.O. Refunding Notes,
3.625%, 1/14/00 $10,012
----------
NEW MEXICO - 0.3%
1,500 Farmington PCR VRDN,
Farmington Public Service (AMT),
(Barclays Bank LOC), 4.00%, 10/1/99 1,500
5,140 New Mexico Mortgage Finance Authority
P-Floats, Series PT-196 (AMT),
3.90%, 10/7/99 5,140
----------
6,640
----------
NEW YORK - 2.3%
3,000 Nassau County G.O. RAN
(Bank of New York LOC), 4.25%, 3/15/00 3,009
8,900 Nassau County TAN, Series C,
3.50%, 12/22/99 8,909
1,100 New York City G.O. VRDN,
Sub Series A-7, (Morgan Guaranty LOC),
3.80%, 10/1/99 1,100
New York State Dormitory Authority
VRDN, Series A, Rockefeller University,
Citicorp Eagle Trust
6,100 No. 973201, 3.87%, 10/7/99 6,100
5,000 No. 973202, 3.87%, 10/7/99 5,000
16,725 New York State Environmental Facilities
Corp. PCR VRDN, Eagle Trust No. 94302,
Weekly Option (FSA Insured),
3.15%, 10/7/99 16,725
10,850 New York State Medical Care Facilities
Finance Agency Revenue Refunding
Bond, Series B, St. Lukes (Colld. by U.S.
Govenment Securities), 7.45%, 2/15/00 11,104
----------
51,947
----------
NORTH CAROLINA - 2.3%
2,200 Brunswick County IDA PCR VRDN, Series
1996 (AMT), Armada Project (Bank of
America Corp. LOC), 3.90%, 10/7/99 2,200
5,700 Capital Regional Airport Commission
Passenger Facilities Charge Revenue VRDN
(AMT) (First Union National Bank of
Charlotte LOC), 3.90%, 10/7/99 5,700
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
NORTH CAROLINA - 2.3% (CONT'D.)
$ 7,000 Catawba County IDA PCR VRDN,
Series 1996 (AMT), Hooker Furniture Corp.
Project (Bank of America Corp. LOC),
3.90%, 10/7/99 $ 7,000
3,000 Columbus County Industrial Facilities &
Finance Authority PCR VRDN (AMT),
Conflandey, Inc. Project (Banque
Nationale de Paris LOC), 3.95%, 10/7/99 3,000
2,400 Mecklenburg County Industrial Facilities &
Finance Authority PCR VRDN (AMT),
SteriGenics International Project
(Comerica Bank LOC), 3.95%, 10/7/99 2,400
495 North Carolina HFA SFM Tender Option
Revenue Bond, 3.65%, 3/1/00 495
12,200 North Carolina Medical Care Community
Hospital Revenue Bond, Pooled
Equipment Finance Project
(MBIA Insured), 3.70%, 10/7/99 12,200
3,600 North Carolina State Ports Authority
VRDN, Series 1996 (AMT), Morehead City
Terminals, Inc. (Bank of America Corp.
LOC), 3.90%, 10/7/99 3,600
7,385 North Carolina State ROC, Series 48,
3.87%, 10/7/99 7,385
2,420 Raleigh COP, Equipment Acquisition
Project, 3.00%, 12/1/99 2,420
5,000 Wake County Industrial Pollution Finance
Facility Authority VRDN, Series C,
Carolina Power & Light Project
(First Union National Bank LOC),
3.70%, 10/7/99 5,000
----------
51,400
----------
NORTH DAKOTA - 0.4%
8,000 North Dakota State HFA Home Mortgage
Finance Revenue Bond, Housing Finance
Program, Series E (AMT), 3.80%, 9/29/00 8,000
----------
OHIO - 3.5%
15,000 Clinton County Hospital Revenue Bonds
VRDN, Ohio Hospital Cap. Inc. Pooled
Financing (Fifth Third Bank LOC),
3.80%, 10/7/99 15,000
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
OHIO - 3.5% (CONT'D.)
$ 6,330 Dublin Inn Tax-Exempt Mortgage Bond
Trust, Series 1987 (Huntington National
Bank LOC), 4.57%, 3/1/00 $ 6,330
12,000 Ohio State Air Quality Development
Authority VRDN, Series A, Ohio Edison
Project (Toronto-Dominion Bank LOC),
2.95%, 2/1/00 12,000
4,500 Ohio State Air Quality Development
Authority PCR VRDN, Cleveland Electric
Illuminating Project (FGIC Insured),
3.25%, 11/12/99 4,500
1,000 Ohio State Air Quality Development
Authority PCR VRDN, Ohio Edison Co.
Project (AMT), (Union Bank of
Switzerland LOC), 4.20%, 5/1/00 1,004
25,000 Ohio State HFA Residential Mortgage
Revenue VRDN, Series A-2 (AMT),
3.05%, 3/1/00 25,000
3,000 Ohio State Solid Waste Revenue Bonds,
Series 99 (AMT), BP Exploration & Oil
Project, 4.00%, 10/1/99 3,000
2,900 Ohio State Turnpike Commission Revenue
Bonds, Weekly Option Period, PCR-18
(FGIC Insured), 4.02%, 10/7/99 2,900
6,600 Student Loan Funding Corp.
Revenue Refunding VRDN, Series A-1
(AMT), 3.75%, 10/7/99 6,600
2,055 Union County IDR VRDN (AMT), Union
Aggregates Co. Project (PNC Bank LOC),
3.95%, 10/7/99 2,055
----------
78,389
----------
OKLAHOMA - 1.0%
6,050 Oklahoma HFA SFM Revenue Bonds
(AMT), PT-78, 3.30%, 3/9/00 6,050
Tulsa City Airport Improvement VRDN
(AMT) (MBIA Insured)
6,740 Series B-1, 3.92%, 10/7/99 6,740
9,390 Series B-2, 3.92%, 10/7/99 9,390
----------
22,180
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
OREGON - 0.8%
$ 2,585 Medford Hospital Facilities Authority
Revenue, Series A (MBIA Insured), Asante
Health System, 4.50%, 8/15/00 $ 2,602
1,100 Metropolitan Service District Riedel
Compost Waste Disposal VRDN (AMT)
(US Bank LOC), 4.00%, 10/7/99 1,100
4,500 Oregon Housing & Community Services
Department SFM Bond Program, Series H,
3.48%, 6/29/00 4,500
3,900 Oregon State Economic Development
Revenue, Series 176 (AMT), Cascade Steel
Rolling Mills Project (Commerzbank A.G.
LOC), 3.90%, 10/7/99 3,900
6,600 Oregon State Economic Development
Revenue, Series 181 (AMT), Oregon Metal
Slitters, Inc. (Key Bank N.A. LOC),
3.95%, 10/7/99 6,600
----------
18,702
----------
PENNSYLVANIA - 3.0%
1,400 Allegheny County Hospital Development
Bonds, Series B-2, Presbyterian University
Hospital (Bank One LOC), 3.85%, 10/1/99 1,400
2,900 Allegheny County Hospital Development
Authority Revenue VRDN, Series D (MBIA
Insured), Presbyterian Health Center,
3.90%, 10/1/99 2,900
3,700 Chester County IDA Bonds, Series 1997 A
(AMT), KAC III Realty Corp. Project (PNC
Bank LOC), 3.95%, 10/7/99 3,700
22,500 Delaware Valley Regional Finance
Authority VRDN, Series 1997 A, Merrill
Lynch P-Floats PT-104 (AMBAC Insured),
3.50%, 11/4/99 22,500
3,500 Pennsylvania Economic Development
Finance Authority IDR VRDN, Series
1996 A1-8 (AMT) (PNC Bank LOC),
3.95%, 10/7/99 3,500
9,250 Pennsylvania Economic Development
Finance Authority Revenue Bond (AMT),
Approved Solid Waste Project, (Bayerisch
Landesbank LOC), 3.25%, 12/15/99 9,250
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
99.4% (CONT'D.)
PENNSYLVANIA - 3.0% (CONT'D.)
$ 3,050 Pennsylvania Higher Educational
Assistance Agency Student Loan Revenue
Bond, Series A (SLMA LOC),
3.90%, 10/7/99 $ 3,050
1,000 Pennsylvania Higher Educational Facilities
Authority Revenue Bond, Series C,
University of Pennsylvania Health Services,
(Morgan Guaranty LOC), 3.85%, 10/7/99 1,000
4,000 Philadelphia Hospital & Higher Education
Facilities VRDN, Series B, Jefferson Health
System, 3.25%, 3/31/00 4,000
3,000 Philadelphia TRAN, Series 1999-2000,
4.25%, 6/30/00 3,016
4,000 Pittsburgh Urban Redevelopment
Authority Bonds, Series C (AMT),
3.20%, 12/1/99 4,000
6,000 Quakertown Hospital Authority VRDN,
HPS Group Pooled Finance (PNC Bank
LOC), 3.90%, 10/7/99 6,000
3,025 Washington County IDA Revenue VRDN
(AMT), Accutrex Products, Inc. Project
(Mellon Bank LOC), 4.10%, 10/7/99 3,025
----------
67,341
----------
SOUTH CAROLINA - 0.6%
5,400 Cherokee County IDR VRDN, Series 1989
(AMT), Oshkosh Truck Corp. Project
(Bank of America Corp. LOC),
3.95%, 10/7/99 5,400
1,000 Florence County Public Facilities Corp.
Bonds, Law Enforcement Project-Civic
Center (Colld. by U.S. Government
Securities), 7.60%, 3/1/00 1,023
200 Lexington County IDA PCR VRDN,
Series A, AlliedSignal Project,
3.95%, 10/7/99 200
900 Lexington County Pollution Control
Facilities Revenue Bond, Series A, Allied
Signal Project, 3.95%, 10/7/99 900
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
SOUTH CAROLINA - 0.6% (CONT'D.)
$5,400 South Carolina Jobs Economic
Development Authority Revenue VRDN
(AMT), Virtual Image Technology
(Bank of America Corp. LOC),
3.95%, 10/7/99 $ 5,400
----------
12,923
----------
SOUTH DAKOTA - 0.6%
5,800 Lawrence County Solid Waste Bonds,
Homestake Mining of CA, Series 1997A
(AMT), (Chase Manhattan Bank LOC),
4.05%, 10/1/99 5,800
8,410 South Dakota Economic Development
Finance Authority VRDN, Series 1996
(AMT), Hastings Filters, Inc. Project
(Harris Trust & Savings Bank LOC),
3.90%, 10/7/99 8,410
----------
14,210
----------
TENNESSEE - 4.6%
1,300 Dickson County IDR VRDN, Series 1996
(AMT), Tennessee Bun Co. LLC Project
(PNC Bank LOC), 3.95%, 10/7/99 1,300
6,000 Jackson City Waste Facilities IDR VRDN,
Series 1995 (AMT), Florida Steel Corp.
Project (Bank of America Corp. LOC),
3.90%, 10/7/99 6,000
2,100 Knox County G.O. Public Improvement
Bonds, 4.50%, 4/1/00 2,114
8,600 Knox County Health, Educational &
Housing VRDN, THA Solutions
Group, Inc. (CDC Funding Corp. LOC),
3.80%, 10/7/99 8,600
5,000 Metropolitan Government Nashville &
Davidson Counties Health & Education
Facilities Board Revenue VRDN, Series A
(AMT), Old Hickory Towers (FHLB LOC),
3.90%, 10/7/99 5,000
1,360 Montgomery County Public Building
Authority Adjustable Loan Pooled Finance
Revenue Bonds, Series 1996 (Bank of
America LOC), 3.80%, 10/7/99 1,360
2,000 Morristown City IDR VRDN, Series 1997
(AMT), BOS Automotive Products, Inc.
(Hypo-Vereinsbank LOC),
3.90%, 10/7/99 2,000
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
Tennessee - 4.6% (CONT'D.)
$23,175 Nashville & Davidson Counties Electric
Revenue VRDN, Citicorp Eagle Trust,
3.87%, 10/7/99 $ 23,175
1,300 Nashville & Davidson Counties
Health & Education Facilities Board
Revenue VRDN, Series 1996-A, Adventist
Health Systems-Sunbelt (SunTrust Banks
LOC), 3.80%, 10/7/99 1,300
4,160 Sevier County Public Building Authority
Local Government Public Improvement
Bonds, Series E-2 (AMT) (AMBAC Insured),
3.85%, 10/7/99 4,160
11,400 Shelby County G.O. Bond, Series 1996 B,
Soc Gen Trust SGB-21 (FSA Insured),
3.87%, 10/7/99 11,400
1,000 Shelby County Health & Educational
Housing Facilities Board Multi-family
Housing Revenue VRDN (AMT), Arbor Lake
Project (PNC Bank LOC),
3.95%, 10/7/99 1,000
8,500 Signal Mountain Health Education
Revenue Refunding Bonds, Alexian Village
Project (FSA Insured), 3.30%, 2/29/00 8,500
Tennessee State HDA Homeownership
Program Revenue Bonds (AMT),
15,000 Series 3-C, 3.10%, 11/18/99 15,000
12,500 Series PG 2-C, 3.57%, 8/15/00 12,500
----------
103,409
----------
TEXAS - 16.5%
13,200 Austin Airport System Revenue Bonds,
Series A (Morgan Guaranty Trust LOC),
3.75%, 10/7/99 13,200
5,000 Austin Utility System Revenue Bonds
(Colld. by U.S. Government Securities),
10.00%, 5/15/00 5,204
10,500 Bastrop Independent School District G.O.
VRDN, Municipal Securities Trust Receipts,
Series SGB-37 (PSF of Texas Gtd.),
3.87%, 10/7/99 10,500
21,350 Brazos River Authority PCR Refunding
Bond, Series C3 (Bank of America Corp.
LOC), 3.50%, 6/19/00 21,350
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
TEXAS - 16.5% (CONT'D.)
$ 5,600 Brazos River Authority PCR Refunding
Bond VRDN, Series 1996-B (AMT), Texas
Utilities Electric Co. Project
(AMBAC Insured), 4.30%, 10/1/99 $ 5,600
13,100 Brazos River Authority PCR Refunding
Bond VRDN, Series 1997-A (AMT), Texas
Utilities Electric Co. Project
(MBIA Insured), 4.10%, 10/1/99 13,100
2,150 Brazos River Authority PCR Refunding
Bond, Series 1997-B (AMT) (MBIA
Insured), Texas Utilities Electric Co.,
4.05%, 10/1/99 2,150
6,250 Brazos River Harbor District Brazoria
County VRDN (AMT), BASF Corp. Project,
4.10%, 10/1/99 6,250
2,500 Brazos River Harbor District VRDN,
Series 1996 (AMT), BASF Corp. Project,
4.10%, 10/1/99 2,500
5,000 Calhoun County Navigation IDR VRDN
(AMT), Formosa Plastics Corp. U.S.A.
(Bank of America Corp. LOC),
3.80%, 10/7/99 5,000
9,600 Comal Independent School District,
ABN-AMRO MuniTops Trust Certificates
(PSF Gtd.), 3.90%, 10/7/99 9,600
28,995 Dallas G.O. Refunding Bonds, Morgan
Stanley Floating Rate Certificates,
Series 93, 3.85%, 10/7/99 28,995
8,000 Denton County Independent School
District G.O., Series B (PSF of Texas Gtd.),
3.65%, 8/15/00 8,000
3,500 El Paso City Housing Finance Corp.
VRDN, Series 1993 (AMT), Viva Apartments
Project (General Electric Corp. LOC),
3.95%, 10/7/99 3,500
7,850 Galveston County Housing Finance Corp.
SFM Revenue Bond, Series PT 205 (AMT),
P-Floats, 3.90%, 10/7/99 7,850
5,000 Greater Texas Student Loan Corp., Series A
(AMT) (SLMA LOC), 3.00%, 2/1/00 5,000
Gulf Coast Waste Disposal Authority VRDN,
Series 1994 (AMT), BP Amoco PLC Project
1,800 4.00%, 10/1/99 1,800
4,600 3.15%, 10/1/99 4,600
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
99.4% (CONT'D.)
TEXAS - 16.5% (CONT'D.)
$11,485 Harris County Health Facilities
Development Corp. Revenue Bonds,
Series 6, Sisters of Charity of the Incarnal
Word Project, 3.95%, 10/7/99 $11,485
11,880 Harris County Toll Road Unlimited Tax
Subordinate Lien Revenue Bonds, CR138,
3.84%, 10/7/99 11,880
20,420 Harris County Toll Road Unlimited Tax
VRDN, Series 1994 A, Citicorp Eagle Trust
No. 954302, 3.84%, 10/7/99 20,420
19,000 Harris County VRDN, Subordinate Lien
Toll Road Bond, 3.95%, 10/7/99 19,000
10,000 Nueces River Authority Water Supply
Revenue Bond, Series 974306 (FSA
Insured), Corpus Christi Lake Project,
3.84%, 10/7/99 10,000
5,000 Port Arthur Navigation District Revenue
VRDN (AMT), BASF Corp. Project,
4.10%, 10/1/99 5,000
15,025 Port Arthur Navigation District Revenue
VRDN (AMT), Fina Oil & Chemical Co.
Project, 4.15%, 10/1/99 15,025
Port of Corpus Christi Solid Waste Disposal
VRDN, Koch Refining Co. Project (AMT)
22,200 3.85%, 10/7/99 22,200
23,000 Series 1996, 3.85%, 10/7/99 23,000
1,230 Richardson City Independent School
District G.O. Refunding Bonds,
4.75%, 2/15/00 1,238
4,000 Sabine River Authority PCR Bond,
Series B (AMT) (AMBAC Insured), Texas
Utilities Electric Co., 4.05%, 10/1/99 4,000
5,000 San Antonio City Electric & Gas System
Revenue Bonds, Series A, Municipal Trust
Certificates No. 32, 3.92%, 10/7/99 5,000
9,240 San Antonio Independent School District
ROC, Series 30 (PSF Gtd.), 3.87%, 10/7/99 9,240
35,000 State of Texas TRAN, Series A,
4.50%, 8/31/00 35,242
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
TEXAS - 16.5% (CONT'D.)
$ 6,401 Texas Department of Housing and
Community Affairs SFM VRDN,
Series PA-128 (AMT) (MBIA Insured),
3.85%, 8/10/00 $ 6,401
5,200 Trinity River IDA Revenue Bonds,
Automatic Data Processing, Inc. Project,
4.35%, 10/1/99 5,200
10,000 University of Texas Financing System,
Series B, 3.82%, 10/7/99 10,000
----------
368,530
----------
UTAH - 1.4%
2,500 Intermountain Power Agency
Power Supply Revenue Bonds,
Series 1985-B (Colld. by U.S. Government
Securities), 10.375%, 7/1/00 2,646
4,800 Intermountain Power Agency Revenue
Bonds, Eagle Trust CR-331 (FSA Insured),
3.84%, 10/7/99 4,800
15,000 Intermountain Power Agency
Variable Rate Revenue Bonds, Series E
(AMBAC Insured), 3.625%, 3/15/00 15,000
7,665 Intermountain Power Supply Revenue
Bonds, Municipal Securities Trust Receipts,
Series SG-6 (FSA Insured), 3.85%, 10/7/99 7,665
----------
30,111
----------
VERMONT - 0.2%
4,250 Vermont Housing Finance Agency
Single Family Housing Notes, Series 10-C
(AMT), 3.15%, 4/28/00 4,250
----------
VIRGINIA - 2.7%
3,700 Botetourt County IDR VRDN (AMT),
Valley Forge Co. Project (Harris Trust &
Savings Bank LOC), 3.95%, 10/7/99 3,700
12,500 Dinwiddie County IDA VRDN, Series A
(AMT), Chaparral Steel Project (Bank of
America Corp. LOC), 4.00%, 10/1/99 12,500
9,935 Fairfax County Economic Development
Authority Resource Recovery Revenue
Refunding Bonds, Series A (AMT) (AMBAC
Insured), 5.50%, 2/1/00 10,004
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
VIRGINIA - 2.7% (CONT'D.)
$ 3,900 Halifax County IDA VRDN, Series 1998
(AMT), D-Scan, Inc. Project (Bank of
America Corp. LOC), 3.90%, 10/7/99 $ 3,900
12,300 Norfolk City G.O. VRDN, Citicorp Eagle
Trust No. 944601, 3.92%, 10/7/99 12,300
1,069 Roanoke IDA VRDB, Carilion Health
System, Series B, 3.95%, 10/1/99 1,069
15,615 Virginia State G.O. VRDN, Series 1994,
Citicorp Eagle Trust No. 954601,
3.84%, 10/7/99 15,615
----------
59,088
----------
WASHINGTON - 4.1%
1,200 Kent City Economic Development Corp.
IDR VRDN, Associated Grocers Project
(Bank of America Corp. LOC),
4.38%, 10/7/99 1,200
4,190 Port of Anacortes IDA IDR Bond, Texaco
Project, 3.40%, 10/7/99 4,190
5,100 Seattle City Municipal Light & Power
Adjustable Rate Revenue Bonds,
Series 1996, 3.65%, 10/7/99 5,100
21,700 Washington G.O. Refunding Bonds,
Eagle Trust Series 1993-C,
3.84%, 10/7/99 21,700
300 Washington Health Care Facilities
Authority Bond, Series 1985-B,
Sisters of Providence (Rabobank Group
LOC), 3.75%, 10/1/99 300
21,200 Washington Public Power Supply System
Revenue Bonds, Series 1994, Citicorp
Eagle Trust, 3.97%, 10/7/99 21,200
8,000 Washington Public Power Supply System
Revenue Bonds, Series A, Project No. 2
(Colld. by U.S. Government Securities),
7.375%, 7/1/00 8,347
6,000 Washington Public Power Supply System
Revenue Refunding Bonds, Series B,
Project No. 3, 7.10%, 7/1/00 6,154
11,950 Washington State G.O., Municipal Trust
Receipts Certificates, SGB-13,
Series 1993-B, 3.87%, 10/7/99 11,950
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
WASHINGTON - 4.1% (CONT'D.)
$ 7,555 Washington State G.O., Series B,
4.25%, 1/1/00 $ 7,573
3,800 Washington State Housing Finance
Commission Single Family Program
VRDN, Series 1A-S (AMT), 3.00%, 2/1/00 3,800
----------
91,514
----------
WEST VIRGINIA - 0.4%
1,300 Brooke County IDR, Series 1997 (AMT),
Star-Kist Foods, Inc. Project (H.J. Heinz Co.
Gtd.), 3.95%, 10/7/99 1,300
Marion County Solid Waste Disposal
Facilities Revenue VRDN (AMT), Granttown
Project (National Westminster Bank LOC)
3,400 Series B, 3.90%, 10/7/99 3,400
3,000 Series C, 3.90%, 10/7/99 3,000
2,000 Ritchie County IDR VRDN (AMT),
Simonton Building Products, Inc. Project
(PNC Bank LOC), 3.95%, 10/7/99 2,000
----------
9,700
----------
WISCONSIN - 3.5%
4,225 Altoona School District BAN,
3.70%, 4/1/00 4,235
2,500 Luxemburg-Casco School District BAN,
3.60%, 12/15/99 2,501
4,500 Mauston School District No. 1, BAN,
3.70%, 4/1/00 4,504
5,800 Medford Area School District BAN,
4.35%, 12/1/99 5,810
2,950 Milwaukee City Redevelopment VRDN,
Series 1996 (AMT), Starline Manufacturing,
Inc. (Harris Trust & Savings Bank LOC),
3.95%, 10/7/99 2,950
5,515 Milwaukee Metropolitan Sewer District
G.O. Refunding Bonds, Series 1997A,
PT 1173, 3.70%, 2/17/00 5,515
5,220 Milwaukee Redevelopment Authority
VRDN, Series 1986 (AMT), Washington
Square Phase III (La Salle National Bank
LOC), 4.05%, 10/7/99 5,220
10,000 Milwaukee Short Term School Notes
Trust Receipts Certificates, Series A37,
3.90%, 10/7/99 10,000
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
99.4% (CONT'D.)
WISCONSIN - 3.5% (CONT'D.)
$ 2,350 Mukwonago School District BAN,
3.75%, 11/1/99 $ 2,351
2,000 Oregon Wisconsin G.O. Promissory Notes
3.70%, 3/15/00 2,002
4,290 Pewaukee IDR VRDN, Series 1992
(AMT), HUSCO International, Inc. Project
(Bank One LOC), 3.90%, 10/7/99 4,290
6,000 River Falls School District BAN,
3.75%, 11/1/99 6,004
850 Sheboygan PCR Bonds, Series 1995,
Wisconsin Electric Co. Project (Wisconsin
Electric Co. Gtd.), 3.85%, 10/7/99 850
11,550 Wisconsin Clean Water Revenue Bonds,
P-Floats, Series PT-1181,
3.85%, 8/24/00 11,550
801 Wisconsin Health and Education Revenue
Bond, Series 1994 A, Sinai Samaritan
Medical Center Project (M&I Bank LOC),
3.80%, 10/7/99 801
5,000 Wisconsin Housing and Economic
Development Authority Home Ownership
Revenue Bonds, Series I (AMT),
3.55%, 8/15/00 5,000
5,000 Wisconsin Housing and Economic
Development Authority Revenue Floating
Rate Trust Receipts, Series 1997 (AMT),
4.05%, 10/7/99 5,000
----------
78,583
----------
WYOMING - 0.5%
Lincoln County PCR (AMT),
Exxon Project
2,200 Series A, 4.00%, 10/1/99 2,200
8,000 Series B, 4.00%, 10/1/99 8,000
2,400 Platte PCR Bonds, Series 1984-A,
Tri-State Generation & Transmission
Association (Natural Rural Utilities
Coop Finance Co. LOC), 4.25%, 10/1/99 2,400
----------
12,600
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MULTIPLE STATES POOLED SECURITIES - 2.6%
$15,975 Greystone County Variable Rate Senior
Certificate Trust, Series 1998-1 (Credit
Suisse First Boston LOC),
3.96%, 10/7/99 $ 15,975
34,415 Pooled Puttable Float Options (AMT),
PPT-7D (Backed by Various Housing
Agencies), 3.375%, 2/10/00 34,415
6,450 Pooled Puttable Float Option (AMT),
Series PT6 (Backed by Various Housing
Agencies), 3.70%, 5/11/00 6,450
1,030 Pooled Puttable VRDN, Series PPT2
(Backed by Alaska HFA & South Dakota
HDA), 3.78%, 10/1/99 1,030
----------
57,870
----------
Total Municipal Investments
(cost $2,220,890) 2,220,890
----------
NUMBER
OF SHARES
(000S)
- ----------
OTHER - 0.2%
657 AIM Tax Free Money Market Fund 657
800 Dreyfus Tax-Exempt Cash
Management Fund 800
321 Federated Tax Free Trust Money Market
Fund No. 15 321
500 Federated Tax Free Trust Money Market
Fund No. 73 500
1,300 Provident Municipal Cash Fund (AMT) 1,300
298 Provident Municipal Fund 298
----------
Total Other
(cost $3,876) 3,876
----------
Total Investments - 99.6%
(cost $2,224,766) 2,224,766
Other Assets less Liabilities - 0.4% 8,908
----------
NET ASSETS - 100.0% $2,233,674
==========
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
CALIFORNIA MUNICIPAL MONEY MARKET FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 99.3%
CALIFORNIA - 92.8%
$10,000 Alameda County California Board of
Education TRAN, 3.50%, 6/30/00 $ 9,998
3,000 Anaheim Union High School District,
1999 School Facility Bridge COP
(FSA Insured), 3.50%, 10/7/99 3,000
1,400 California HFA Home Mortgage Revenue
FRN, Merrill P-Floats PT-14,
Series 1993-B, 3.52%, 10/7/99 1,400
California HFA Housing Revenue FRN,
Merrill P-Floats,
1,340 Series 1991-G PT-40D (AMT),
3.57%, 10/7/99 1,340
115 PT-56 (AMT), 3.57%, 10/7/99 115
7,485 California HFA Housing Revenue FRN,
Series A-2 PT-258 (AMT), SFM Program,
2.95%, 1/13/00 7,485
7,125 California HFA Multifamily Housing
Revenue FRN, Series III-D (AMT)
(Morgan Guaranty Trust LOC),
3.75%, 10/7/99 7,125
11,500 California Health Facility Finance
Authority Kaiser Permanente FRN,
Morgan Stanley Muni Trust, Series 1998-26
(FSA Insured), 3.52%, 10/7/99 11,500
California Health Facility Finance
Authority Revenue Bonds,
Catholic Healthcare West (MBIA Insured)
2,400 Series 1995 D,
3.40%, 10/7/99 2,400
3,500 Series 1996 D,
3.40%, 10/7/99 3,500
2,800 Series 1997 B,
3.40%, 10/7/99 2,800
4,000 California HFA Home Mortgage Revenue
Bonds, Series D (AMT), 3.02%, 4/30/00 4,000
2,900 California HFA Multi-Unit Housing
Revenue FRN, Series 92A CR-231
(MBIA Insured), 3.55%, 3/1/00 2,900
1,100 California Pollution Control Finance
Authority PCR Bond, Series F, Pacific
Gas & Electric Co. (Banque Nationale de
Paris LOC), 3.70%, 10/1/99 1,100
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CALIFORNIA - 92.8% (CONT'D.)
$1,700 California Pollution Control Finance
Authority Revenue Bond,
Series 1997 A (AMT), ARCO Project
(Atlantic Richfield Co. Gtd.),
3.50%, 10/7/99 $1,700
3,000 California Pollution Control Finance
Authority Revenue Bond, Series 1997 A,
Pacific Gas & Electric Co.
(Toronto-Dominion Bank LOC),
3.70%, 10/1/99 3,000
7,300 California Pollution Control Finance
Authority Revenue Bond, Series 1997 B
(AMT), Air Products Manufacturing Co.
(Air Products & Chemicals Corp. Gtd.),
4.00%, 10/7/99 7,300
1,600 California Pollution Control Finance
Authority Revenue Bond, Series 1997 C
(AMT), Pacific Gas & Electric Co.
(KBC Bank LOC), 3.75%, 10/1/99 1,600
3,600 California Pollution Control Finance
Authority Revenue Bond, Series A (AMT)
Pacific Gas & Electric Co. (UBS AG LOC),
3.30%, 10/7/99 3,600
California Pollution Control Finance
Authority Revenue Bond, Shell Oil Co.
Project 1991 (Shell Oil Co., Gtd.)
4,450 Series A, 3.45%, 10/1/99 4,450
1,450 Series C, 3.45%, 10/1/99 1,450
2,800 California School Facilities Financing
Corp. COP, Series D (KBC Bank LOC),
3.20%, 10/7/99 2,800
7,455 California State Department of Water
Resources VRDN,
ML/SG Muni Trust, Series SG-5,
3.52%, 10/7/99 7,455
2,000 California State Economic Development
Finance Authority IDR Bond, Series 1998
(AMT), Lion Raisins Project
(Bank of America Corp. LOC),
3.35%, 10/7/99 2,000
3,500 California State Economic Development
Finance Authority, Series 1998 D, California
Independent Systems Operator Corp.
(Bank of America Corp. LOC),
4.00%, 10/1/99 3,500
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
CALIFORNIA MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
99.3% (CONT'D.)
CALIFORNIA - 92.8% (CONT'D.)
$20,170 California State G.O. Bank of America Corp.
Variable Rate Certificate, Series 1997 H
(Colld. by U.S. Government Securities),
3.87%, 10/7/99 $20,170
California G.O. Citibank Tender Option
Bond (FGIC Insured),
7,400 Series CR-52, 3.67%, 10/7/99 7,400
1,500 Series 5027 C, 3.67%, 10/7/99 1,500
California State G.O. CP,
2,400 Series A, 2.95%, 10/8/99 2,400
5,000 Series A, 3.10%, 11/8/99 5,000
2,900 Series A, 3.10%, 11/9/99 2,900
3,415 California State G.O. Tender Option
Custodial Receipt (MBIA Insured),
3.80%, 10/7/99 3,415
5,200 California State PCR Bond,
Series C, Southern California Edison
Project (Southern California Edison
Corp. Gtd.), 4.05%, 10/1/99 5,200
California State PCR Bond,
Southern California Edison Project
(Southern California Edison Corp. Gtd.),
8,805 4.05%, 10/1/99 8,805
1,000 3.40%, 2/22/00 1,000
2,000 3.40%, 3/7/00 2,000
9,620 California State Various Purpose G.O.
Bonds Merrill Lynch Floating Rate Receipts
SG-91 (FGIC Insured),
3.52%, 10/7/99 9,620
3,500 California Statewide Community
Development Authority IDR Bonds,
Series 1998 A (AMT), A & B Die Casting Co.
(Bank of America Corp. LOC),
3.40%, 10/7/99 3,500
1,200 California Statewide Community
Development Authority Multifamily
Housing Revenue Bond, Series S (AMT)
Concord Green Apartments (FHLB LOC),
3.40%, 10/7/99 1,200
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CALIFORNIA - 92.8% (CONT'D.)
Chula Vista IDR Bond,
San Diego Gas & Electric Co.,
$ 2,400 Series 1996 A, 3.50%, 10/1/99 $ 2,400
18,000 Series 1996 B (AMT), 4.15%, 10/1/99 18,000
17,835 Contra Costa County Home Mortgage
Revenue Variable Rates Certificates, Series
1997 C (Colld. by U.S. Government
Securities), 3.77%, 10/7/99 17,835
4,000 Desert Sands California Unified School
District 1999 TRAN,
3.50%, 7/7/00 4,011
1,625 Eastern Municipal Water District of
California COP (Colld. by U.S.
Government Securities),
6.80%, 11/1/99 1,630
5,000 Elk Grove California Unified School
District 1999-2000 TRAN,
4.50%, 6/30/00 5,040
2,200 Irvine City Assessment District 97-17
Limited Obligation Improvement Bond
(HypoVereinsbank LOC),
3.50%, 10/1/99 2,200
4,500 Irvine Ranch Consolidated Water
District 2, 102, 103 & 206 Water and
Sewer FRN, Series 1993 B (Toronto
Dominion Co. LOC), 3.60%, 10/1/99 4,500
5,100 Irvine Ranch Consolidated Water
Districts 105, 140, 240 & 250, Series 95
(Commerzbank A.G. LOC),
3.50%, 10/1/99 5,100
4,000 Irvine Ranch Consolidated Water
Districts 284 Project,
(Landesbank Hessen Thuringen
Girozentral LOC),
3.95%, 10/1/99 4,000
1,000 Irvine Ranch Consolidated Water District
Refunding Bond, Series 1985 B
(Landesbank Hessen Thuringen
Girozentral LOC), 3.95%, 10/1/99 1,000
1,100 Irvine Ranch Water District Refunding
Bond, Districts 102, 103 & 105
(Commerzbank A.G. LOC),
3.50%, 10/1/99 1,100
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CALIFORNIA - 92.8% (CONT'D.)
$3,900 Irvine Ranch Water District 282-A
Revenue Bond (Landesbank
Hessen Thuringen Girozentral LOC),
3.95%, 10/1/99 $3,900
2,500 Irvine Ranch Water District Revenue Bond,
Series 1985 (Landesbank Hessen Thuringen
Girozentral LOC), 3.50%, 10/1/99 2,500
2,100 Irvine Ranch Water District Revenue Bond,
Series 1991 (National Westminster Bank
LOC), 3.50%, 10/1/99 2,100
3,700 Kern County Public Facilities Project COP,
Series A (UBS A.G. LOC),
3.40%, 10/7/99 3,700
2,700 Livermore Multifamily Housing Revenue
Bond, Series A (AMT), Portola Meadows
Apartments (Bank of America Corp. LOC),
3.45%, 10/7/99 2,700
3,000 Long Beach TRAN, Series 1998-99,
4.00%, 10/5/99 3,000
1,700 Los Angeles City Multifamily Housing
Revenue Refunding Bond,
Series 1995 D (AMT), Coral Wood Court
Project (Union Bank of California LOC),
4.00%, 10/6/99 1,700
3,000 Los Angeles City Schools Pooled Financing
Program TRAN, Series 1999 A,
4.00%, 6/30/00 3,019
7,075 Los Angeles Community Development
VRDN, Promenade Towers
(Barclays Bank LOC), 3.45%, 10/7/99 7,075
1,525 Los Angeles Convention and Exhibition
Center Revenue VRDN,
Merrill P-Floats, Series 1993 PA-88 (MBIA
Insured), 3.52%, 10/7/99 1,525
3,100 Los Angeles County Metropolitan
Transportation Authority
Proposition C Sales Tax Revenue Bond
(MBIA Insured), 3.40%, 10/7/99 3,100
300 Los Angeles County Metropolitan
Transportation Authority Refunding
Bond, ML/SG Muni Trust, SGB-1
(FSA Insured), Union Station Project,
3.62%, 10/7/99 300
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CALIFORNIA - 92.8% (CONT'D.)
$ 4,200 Los Angeles State Housing Revenue Bond,
Series 1996-6A, Clipper Trust Certificates
(AMT) (Colld. by FNMA Securities),
3.31%, 10/7/99 $ 4,200
Metropolitan Water District of Southern
California CP, Series B,
10,400 2.90%, 10/8/99 10,400
1,000 3.35%, 3/7/00 1,000
1,100 Metropolitan Water District of Southern
California Refunding Bonds,
Series 1996 A (AMBAC Insured),
3.40%, 10/7/99 1,100
3,400 Moorpark Unified School
District 1999-2000 TRAN,
3.50%, 6/30/00 3,400
6,000 Moreno Valley Unified School
District 1999-2000 TRAN,
4.00%, 6/30/00 6,026
2,000 Mountain View Los Altos Unified High
School District 1999 TRAN,
3.50%, 6/30/00 2,006
2,000 Mountain View Unified School
District 1999 TRAN,
3.50%, 6/30/00 2,006
5,300 Orange County Apartment Development
Housing Revenue FRN,
Series 1985 T, Monarch Laguna Association
(Bank of America Corp. LOC),
3.25%, 10/7/99 5,300
13,195 Orange County Apartment Development
Housing Revenue FRN,
Series 1992 B, Aliso Creek Project
(Wells Fargo & Co. LOC),
3.40%, 10/7/99 13,195
4,000 Orange County Apartment Development
Housing Revenue FRN,
Wood Canyon Villas Issue B of 1991
(Bank of America Corp. LOC),
3.55%, 10/7/99 4,000
4,000 Orange County Sanitation
Districts 1-3, 5-7 & 11
COP, Series 1992 (AMBAC Insured),
3.40%, 10/7/99 4,000
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
CALIFORNIA MUNICIPAL MONEY MARKET FUND (CONTINUED)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
99.3% (CONT'D.)
CALIFORNIA - 92.8% (CONT'D.)
$1,000 Orange County Sanitation
Districts 1-3, 5-7 & 11 Bond,
Series 1993 A (AMBAC Insured),
3.50%, 10/1/99 $1,000
3,600 Perris Unified High School
District 1999-2000 TRAN,
3.50%, 6/30/00 3,600
1,080 Placer County Office of Education TRAN,
4.125%, 10/1/00 1,085
4,390 Regents of the University of California
Refunding Revenue Bonds,
Series C, ML/SG Muni Trust, SG-24,
3.52%, 10/7/99 4,390
1,041 Riverside County Multifamily Housing
Revenue FRN, Series 1992A, Ambergate
Apartments (Union Bank of California
LOC), 3.65%, 10/7/99 1,041
1,800 Riverside County Public Facilities Project
COP, Series 1985 (National Westminster
Bank PLC LOC),
3.25%, 10/7/99 1,800
6,100 Riverside County School Finance
Authority RAN, Series B,
3.45%, 10/1/99 6,100
2,400 Rocklin Unified School District TRAN,
4.125%, 10/1/00 2,411
4,000 Sacramento City Finance Authority Lease
Revenue Refunding Bond,
Series 1997 SAK 18 (AMBAC Insured),
3.95%, 10/7/99 4,000
3,100 Sacramento-Yolo Port District VRDN,
Series 1997 A (AMT), California Free Trade
Zone Project (Wells Fargo & Co. LOC),
3.55%, 10/7/99 3,100
8,000 San Bernardino County 1999 TRAN,
3.75%, 9/29/00 8,018
7,005 San Diego County 1999 TRAN,
5.00%, 9/29/00 7,114
10,000 San Diego HDA Multifamily
Housing Revenue Bond, La Cima
Apartments (FHLMC Gtd.),
3.40%, 10/7/99 10,000
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CALIFORNIA - 92.8% (CONT'D.)
$ 5,000 San Diego Unified School
District 1999-2000 TRAN, 4.25%, 9/29/00 $ 5,043
3,955 San Diego Public Facilities Financing
Authority Bond, ML/SG Muni Trust SG-14
(AMBAC Insured),
3.52%, 10/7/99 3,955
6,000 San Francisco City and County Airport
Commission International Airport Revenue
FRN (AMT), Susquehanna Structured
Projects SSP-4 (AMBAC Insured),
3.63%, 10/7/99 6,000
12,500 San Francisco City and County
Redevelopment Agency (AMT),
1999C Multifamily Housing Bond,
3rd & Mission (HypoVereinsbank LOC),
3.45%, 10/7/99 12,500
4,975 San Francisco City and County Variable
Rate Certificates, Series 1996-AA6
(FGIC Insured), 3.82%, 10/7/99 4,975
1,800 San Leandro Multifamily
Revenue Bonds, Series 1989 A, Parkside
Commons Apartment (FNMA Gtd.),
3.25%, 10/7/99 1,800
645 Santa Clara County Housing Authority
Multifamily VRDN, Series A (AMT),
Avenida Espana Gardens
(Union Bank of California LOC),
3.75%, 10/7/99 645
1,200 Tustin Limited Tax G.O. Improvement
Bond, Series A, Reassessment District 95-2
(KBC Bank LOC),
3.50%, 10/1/99 1,200
----------
419,473
----------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
PUERTO RICO-6.5%
Government Development Bank for Puerto
Rico Tax-Exempt CP,
$10,000 3.25%, 1/26/00 $ 10,000
11,438 3.40%, 2/16/00 11,438
3,000 3.40%, 2/24/00 3,000
4,800 Puerto Rico Commonwealth Highway
and Transportation Authority
Transportation Revenue Bond, Series A
(AMBAC Insured), 3.45%, 10/7/99 4,800
----------
29,238
----------
Total Municipal Investments
(cost $448,711 ) 448,711
----------
NUMBER
OF SHARES
(000S)
- -----------
OTHER - 0.2%
56 Federated Tax-Exempt
Money Market Fund No. 80 56
993 Provident Institutional California
Money Fund No. 52 993
----------
Total Other (cost $1,049) 1,049
----------
Total Investments - 99.5%
(cost $449,760) 449,760
Other Assets less Liabilities - 0.5% 2,054
----------
NET ASSETS - 100.0% $451,814
==========
See Notes to the Financial Statements.
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES SEPTEMBER 30, 1999 (UNAUDITED)
FIXED INCOME FUNDS
<TABLE>
<CAPTION>
FLORIDA
U.S. INTERMEDIATE INTERMEDIATE FIXED
AMOUNTS IN THOUSANDS, GOV'T. TAX-EXEMPT TAX-EXEMPT INCOME
EXCEPT PER SHARE DATA FUND FUND FUND FUND
- ------------------------ ------- ------- ------- -------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (cost $262,918, $366,392,
$40,657, $332,555, $242,481, $78,047,
$15,482, $17,541 and $103,300, respectively) $258,386 $362,236 $39,986 $319,491
Cash and foreign currencies 1 1 1 53
Income receivable 2,438 4,551 516 3,821
Receivable for securities sold - - 1,563 -
Receivable from Adviser - - - -
Prepaid and other assets 27 24 12 31
- -------------------------------------------------------------------------------------------------------------------------------
Total Assets 260,852 366,812 42,078 323,396
- -------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Dividends payable 105 116 11 150
Payable for securities purchased - 3,875 4,679 -
Accrued investment advisory fees 21 28 3 26
Accrued custody and accounting fees 7 7 4 4
Accrued transfer agent fees 3 4 - 4
Accrued registration fees and other liabilities 32 43 8 43
- -------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 168 4,073 4,705 227
- -------------------------------------------------------------------------------------------------------------------------------
Net Assets $260,684 $362,739 $37,373 $323,169
===============================================================================================================================
ANALYSIS OF NET ASSETS:
Capital stock $266,146 $365,461 $38,006 $336,704
Undistributed (distributions in
excess of) net investment income 364 77 - (112)
Undistributed net realized gains
(losses) on investments and
foreign currency transactions (1,294) 1,357 38 (359)
Net unrealized depreciation on investments (4,532) (4,156) (671) (13,064)
Net unrealized gains on translation of assets and
liabilities denominated in foreign currencies - - - -
- -------------------------------------------------------------------------------------------------------------------------------
Net Assets $260,684 $362,739 $37,373 $323,169
===============================================================================================================================
SHARES OUTSTANDING ($.0001 PAR VALUE,
UNLIMITED AUTHORIZATION) 26,470 36,123 3,681 33,094
NET ASSET VALUE, REDEMPTION AND
OFFERING PRICE PER SHARE $9.85 $10.04 $10.15 $9.77
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
<TABLE>
<CAPTION>
INT'L. HIGH YIELD
CALIFORNIA FIXED HIGH YIELD FIXED
AMOUNTS IN THOUSANDS, TAX-EXEMPT TAX-EXEMPT INCOME MUNICIPAL INCOME
EXCEPT PER SHARE DATA FUND FUND FUND FUND FUND
- ------------------------ ------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (cost $262,918, $366,392,
$40,657, $332,555, $242,481, $78,047,
$15,482, $17,541 and $103,300, respectively) $238,988 $75,399 $15,418 $16,753 $100,759
Cash and foreign currencies 24 - 67 - -
Income receivable 2,762 1,068 430 277 2,538
Receivable for securities sold - - - - -
Receivable from Adviser - - - 2 5
Prepaid and other assets 24 5 7 9 10
- ----------------------------------------------------------------------------------------------------------------------------------
Total Assets 241,798 76,472 15,922 17,041 103,312
- ---------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Dividends payable 79 25 - - -
Payable for securities purchased 14,196 - - - 1,959
Accrued investment advisory fees 17 6 2 1 8
Accrued custody and accounting fees 6 5 2 6 3
Accrued transfer agent fees 2 1 - - 1
Accrued registration fees and other liabilities 40 18 11 11 15
- ----------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 14,340 55 15 18 1,986
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets $227,458 $76,417 $15,907 $17,023 $101,326
==================================================================================================================================
ANALYSIS OF NET ASSETS:
Capital stock $233,597 $79,117 $15,981 $17,824 $104,534
Undistributed (distributions in
excess of) net investment income (66) - 48 17 184
Undistributed net realized gains
(losses) on investments and
foreign currency transactions (2,580) (52) (64) (30) (851)
Net unrealized depreciation on investments (3,493) (2,648) (64) (788) (2,541)
Net unrealized gains on translation of assets and
liabilities denominated in foreign currencies - - 6 - -
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets $227,458 $76,417 $15,907 $17,023 $101,326
==================================================================================================================================
SHARES OUTSTANDING ($.0001 PAR VALUE,
UNLIMITED AUTHORIZATION) 22,639 7,412 1,581 1,798 10,448
NET ASSET VALUE, REDEMPTION AND
OFFERING PRICE PER SHARE $10.05 $10.31 $10.06 $9.47 $9.70
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to the Financial Statements.
<PAGE>
STATEMENTS OF OPERATIONS SIX MONTHS ENDED SEPTEMBER 30, 1999 (UNAUDITED)
FIXED INCOME FUNDS
<TABLE>
<CAPTION>
FLORIDA
U.S. INTERMEDIATE INTERMEDIATE FIXED
GOV'T. TAX-EXEMPT TAX-EXEMPT INCOME
AMOUNTS IN THOUSANDS FUND FUND FUND FUND
- ----------------------- ------- ------- ------- -------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $7,309 $8,265 $848 $9,320
- --------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 982 1,336 143 1,116
Administration fees 197 267 29 223
Transfer agent fees 131 178 19 149
Custody and accounting fees 46 56 25 48
Registration fees 22 36 9 36
Professional fees 9 10 8 9
Trustees' fees and expenses 3 4 2 3
Other 6 7 1 5
- --------------------------------------------------------------------------------------------------------------------------------
Total Expenses 1,396 1,894 236 1,589
Less voluntary waivers of:
Investment advisory fees - (89) (10) -
Administration fees (137) (182) (19) (158)
Less reimbursement of expenses by Adviser (80) (109) (46) (93)
- --------------------------------------------------------------------------------------------------------------------------------
Net Expenses 1,179 1,514 161 1,338
- --------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 6,130 6,751 687 7,982
- --------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAINS (LOSSES):
Net realized gains (losses) on:
Investments (1,733) 747 (96) (2,176)
Foreign currency transactions - - - -
Net change in unrealized depreciation
on investments (3,491) (11,803) (1,073) (9,030)
Net change in unrealized gains on
translation of assets and liabilities
denominated in foreign currencies - - - -
- --------------------------------------------------------------------------------------------------------------------------------
Net Losses on Investments (5,224) (11,056) (1,169) (11,206)
- --------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $906 $(4,305) $(482) $(3,224)
================================================================================================================================
</TABLE>
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
<TABLE>
<CAPTION>
INT'L. HIGH YIELD
CALIFORNIA FIXED HIGH YIELD FIXED
AMOUNTS IN THOUSANDS, TAX-EXEMPT TAX-EXEMPT INCOME MUNICIPAL INCOME
EXCEPT PER SHARE DATA FUND FUND FUND FUND FUND
- ------------------------ ------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $5,759 $1,813 $408<F1> $385 $3,538
- -----------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 859 281 67 51 268
Administration fees 172 56 11 10 54
Transfer agent fees 114 38 8 7 36
Custody and accounting fees 46 28 35 26 29
Registration fees 33 9 6 10 19
Professional fees 9 8 7 8 8
Trustees' fees and expenses 3 2 2 1 1
Other 5 2 1 - 1
- -----------------------------------------------------------------------------------------------------------------------------------
Total Expenses 1,241 424 137 113 416
Less voluntary waivers of:
Investment advisory fees (57) (19) - <F3> -
Administration fees (117) (39) (8) (7) (37)
Less reimbursement of expenses by Adviser (93) (47) (43) (45) (57)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Expenses 974 319 86 58 322
- -----------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 4,785 1,494 322 327 3,216
- ----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAINS (LOSSES):
Net realized gains (losses) on:
Investments (3,462) (219) - (30) (851)
Foreign currency transactions - - (42) - -
Net change in unrealized depreciation
on investments (9,342) (3,832) (467) (777) (2,809)
Net change in unrealized gains on
translation of assets and liabilities
denominated in foreign currencies - - 16 - -
- -----------------------------------------------------------------------------------------------------------------------------------
Net Losses on Investments (12,804) (4,051) (493) (807) (3,660)
- -----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $(8,019) $(2,557) $(171) $(480) $(444)
===================================================================================================================================
</TABLE>
<F1> Net of $3 in non-reclaimable foreign withholding taxes.
See Notes to the Financial Statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
FIXED INCOME FUNDS
<TABLE>
<CAPTION>
FLORIDA
INTERMEDIATE INTERMEDIATE
U.S. GOVERNMENT TAX-EXEMPT TAX-EXEMPT
FUND FUND FUND
----------------------- ----------------------------- --------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED YEAR
SEPT. 30, ENDED SEPT. 30, ENDED SEPT. 30, ENDED
1999 MAR. 31, 1999 MAR. 31, 1999 MAR. 31,
AMOUNTS IN THOUSANDS (UNAUDITED) 1999 (UNAUDITED) 1999 (UNAUDITED) 1999
- --------------------- ------------ ------- ------------- ------ ------------- ------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 6,130 $ 11,957 $ 6,751 $ 12,050 $ 687 $ 1,074
Net realized gains (losses) on investments,
forward foreign currency contracts and
foreign currency transactions (1,733) 6,337 747 2,609 (96) 380
Net change in unrealized appreciation
(depreciation) on investments and
foreign currency transactions (3,491) (3,841) (11,803) 370 (1,073) (52)
Net change in unrealized gains (losses) on
translation of assets and liabilities
denominated in foreign currencies - - - - - -
- -----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 906 14,453 (4,305) 15,029 (482) 1,402
- -----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 26,732 91,913 49,025 70,405 7,661 18,721
Shares from reinvestment of dividends 577 7,278 521 4,060 134 581
Shares redeemed (29,643) (56,221) (20,540) (27,748) (6,374) (7,358)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Capital Share Transactions (2,334) 42,970 29,006 46,717 1,421 11,944
- -----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID:
From net investment income (6,130) (11,957) (6,751) (12,050) (687) (1,074)
From net realized gains - (6,576) - (3,436) - (480)
In excess of net investment income - - - - - -
In excess of net realized gains - - - - - -
- -----------------------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (6,130) (18,533) (6,751) (15,486) (687) (1,554)
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS (7,558) 38,890 17,950 46,260 252 11,792
NET ASSETS:
Beginning of period 268,242 229,352 344,789 298,529 37,121 25,329
- -----------------------------------------------------------------------------------------------------------------------------------
End of period $260,684 $268,242 $362,739 $344,789 $37,373 $37,121
===================================================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS
IN EXCESS OF) NET INVESTMENT INCOME $364 $364 $77 $77 $- $-
===================================================================================================================================
</TABLE>
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
<TABLE>
<CAPTION>
INTERNATIONAL
FIXED CALIFORNIA FIXED
INCOME TAX-EXEMPT TAX-EXEMPT INCOME
FUND FUND FUND FUND
------------------ -------------------- ----------------- ---------------------
SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR
SEPT. 30, ENDED SEPT. 30, ENDED SEPT. 30, ENDED SEPT. 30, ENDED
1999 MAR. 31, 1999 MAR. 31, 1999 MAR. 31, 1999 MAR. 31,
AMOUNTS IN THOUSANDS (UNAUDITED) 1999 (UNAUDITED) 1999 (UNAUDITED) 1999<F1> (UNAUDITED) 1999
- ----------------------- ------------ ----- ------------- ----- ------------ ------- ------------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 7,982 $ 12,034 $ 4,785 $ 8,058 $ 1,494 $ 2,239 $ 322 $ 696
Net realized gains (losses)
on investments,
forward foreign currency
contracts and
foreign currency transactions (2,176) 7,776 (3,462) 3,000 (219) 772 (42) (129)
Net change in unrealized
appreciation
(depreciation) on
investments and
foreign currency transactions (9,030) (8,977) (9,342) (1,001) (3,832) 365 (467) 789
Net change in unrealized gains
(losses) on translation of
assets and liabilities
denominated in foreign
currencies - - - - - - 16 (2)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets
Resulting from Operations (3,224) 10,833 (8,019) 10,057 (2,557) 3,376 (171) 1,354
- -----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 79,985 226,121 33,120 110,381 16,596 49,919 2,677 2,308
Shares from reinvestment
of dividends 1,172 7,524 372 4,617 352 1,068 24 181
Shares redeemed (21,890) (132,989) (21,053)(52,123) (13,729) (14,198) (620) (2,627)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets
Resulting from Capital
Share Transactions 59,267 100,656 12,439 62,875 3,219 36,789 2,081 (138)
- -----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID:
From net investment income (7,982) (11,874) (4,785) (7,981) (1,494) (2,239) (288) (452)
From net realized gains - (6,312) - (4,271) - (620) - (93)
In excess of net investment income - (112) - (77) - - - -
In excess of net realized gains - - - - - - - (61)
- -----------------------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (7,982) (18,298) (4,785)(12,329) (1,494) (2,859) (288) (606)
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS 48,061 93,191 (365) 60,603 (832) 37,306 1,622 610
Net Assets:
Beginning of period 275,108 181,917 227,823 167,220 77,249 39,943 14,285 13,675
- -----------------------------------------------------------------------------------------------------------------------------------
End of period $323,169 $275,108 $227,458$227,823 $76,417 $77,249 $15,907 $14,285
===================================================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS
IN EXCESS OF) NET INVESTMENT INCOME $(112) $(112) $(66) $(66) $ - $ - $48 $14
===================================================================================================================================
</TABLE>
<F1> For the period April 8, 1997 (commencement of operations) through March
31, 1998.
See Notes to the Financial Statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FIXED INCOME FUNDS
<TABLE>
<CAPTION>
HIGH YIELD
HIGH YIELD MUNICIPAL FIXED INCOME
FUND FUND
--------------------------- ---------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR
SEPT. 30, ENDED SEPT. 30, ENDED
1999 MAR. 31, 1999 MAR. 31,
AMOUNTS IN THOUSANDS (UNAUDITED) 1999<F1> (UNAUDITED) 1999<F1>
- ---------------------------------------------- --------------------------- ---------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 327 $ 41 $ 3,216 $ 376
Net realized gains (losses) on investments,
forward foreign currency contracts and
foreign currency transactions (30) - (851) -
Net change in unrealized appreciation
(depreciation) on investments and
foreign currency transactions (777) (11) (2,809) 268
Net change in unrealized gains (losses) on
translation of assets and liabilities
denominated in foreign currencies - - - -
- ------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations (480) 30 (444) 644
- ------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 9,069 10,260 71,975 40,664
Shares from reinvestment of dividends - 1 466 65
Shares redeemed (1,282) (224) (8,444) (192)
- ------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets
Resulting from Capital Share Transactions 7,787 10,037 63,997 40,537
- ------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID:
From net investment income (317) (34) (3,091) (317)
From net realized gains - - - -
In excess of net investment income - - - -
In excess of net realized gains - - - -
- ------------------------------------------------------------------------------------------------------------
Total Distributions Paid (317) (34) (3,091) (317)
- ------------------------------------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 6,990 10,033 60,462 40,864
NET ASSETS:
Beginning of period 10,033 - 40,864 -
- ------------------------------------------------------------------------------------------------------------
End of period $17,023 $10,033 $101,326 $40,864
============================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $17 $7 $184 $59
============================================================================================================
</TABLE>
<F1> Commenced investment operations after the close of business on December 31,
1998.
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
FINANCIAL HIGHLIGHTS
FIXED INCOME FUNDS
<TABLE>
<CAPTION>
U.S. GOVERNMENT
FUND
----------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR YEAR
SEPT. 30, ENDED ENDED ENDED ENDED ENDED
1999 MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
(UNAUDITED) 1999 1998 1997 1996 1995
- ---------------------------------------------- ----------------------------------------------------------------------------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.05 $10.20 $ 9.88 $10.06 $ 9.84 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.23 0.50 0.54 0.51 0.51 0.50
Net realized and unrealized gains (losses)
on investments (0.20) 0.10 0.32 (0.11) 0.29 (0.16)
- ------------------------------------------------------------------------------------------------------------------------------
Total Income from Investment Operations 0.03 0.60 0.86 0.40 0.80 0.34
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.23) (0.49) (0.53) (0.51) (0.51) (0.50)
From net realized gains - (0.26) (0.01) (0.05) (0.07) -
In excess of net realized gains - - - (0.02) - -
- ------------------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (0.23) (0.75) (0.54) (0.58) (0.58) (0.50)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $9.85 $10.05 $10.20 $ 9.88 $10.06 $ 9.84
==============================================================================================================================
TOTAL RETURN<F1> 0.67% 6.01% 8.90% 3.98% 7.65% 3.49%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $260,684 $268,242 $229,352 $181,921 $149,062 $116,443
Ratio to average net assets of <F2>:
Expenses, net of waivers and reimbursements 0.90% 0.90% 0.90% 0.90% 0.90% 0.90%
Expenses, before waivers and reimbursements 1.07% 1.07% 1.07% 1.09% 1.10% 1.12%
Net investment income, net of waivers
and reimbursements 4.68% 4.73% 5.24% 5.19% 5.07% 5.20%
Net investment income, before waivers
and reimbursements 4.51% 4.56% 5.07% 5.00% 4.87% 4.98%
Portfolio Turnover Rate 15.76% 123.75% 47.41% 83.41% 112.00% 42.29%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at net asset value at the end of the year. Total return
is not annualized for periods less than one year.
<F2> Annualized for period less than one year.
See Notes to the Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
FIXED INCOME FUNDS
<TABLE>
<CAPTION>
INTERMEDIATE
TAX-EXEMPT
FUND
----------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR YEAR
SEPT. 30, ENDED ENDED ENDED ENDED ENDED
1999 MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
(UNAUDITED) 1999 1998 1997 1996 1995
- ---------------------------------------------- ----------------------------------------------------------------------------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.36 $10.36 $10.07 $10.22 $10.03 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.19 0.39 0.40 0.40 0.41 0.40
Net realized and unrealized gains (losses)
on investments (0.32) 0.11 0.29 (0.06) 0.26 0.03
- ------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) from Investment Operations (0.13) 0.50 0.69 0.34 0.67 0.43
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.19) (0.39) (0.40) (0.40) (0.41) (0.40)
From net realized gains - (0.11) - (0.07) (0.07) -
In excess of net investment income - - - - - -
In excess of net realized gains - - - (0.02) - -
- ------------------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (0.19) (0.50) (0.40) (0.49) (0.48) (0.40)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $10.04 $10.36 $10.36 $10.07 $10.22 $10.03
==============================================================================================================================
TOTAL RETURN<F2> (0.97)% 4.88% 6.95% 3.39% 6.81% 4.38%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $362,739 $344,789 $298,529 $264,630 $244,139 $221,251
Ratio to average net assets of <F3>:
Expenses, net of waivers and reimbursements 0.85% 0.85% 0.85% 0.85% 0.85% 0.85%
Expenses, before waivers and reimbursements 1.06% 1.06% 1.07% 1.07% 1.08% 1.09%
Net investment income, net of waivers
and reimbursements 3.79% 3.76% 3.84% 3.90% 4.01% 4.09%
Net investment income, before waivers
and reimbursements 3.58% 3.55% 3.62% 3.68% 3.78% 3.85%
Portfolio Turnover Rate 22.23% 54.03% 61.83% 61.39% 137.85% 78.87%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
NORTHERN FUNDS Semiannual Report
<TABLE>
<CAPTION>
FLORIDA
INTERMEDIATE
TAX-EXEMPT
FUND
------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR
SEPT. 30, ENDED ENDED ENDED
1999 MAR. 31, MAR. 31, MAR. 31,
(UNAUDITED) 1999 1998 1997<F1>
- ---------------------------------------------- ------------------------------------------------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.47 $10.47 $10.03 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.18 0.39 0.40 0.24
Net realized and unrealized gains (losses)
on investments (0.32) 0.16 0.44 0.03
- -----------------------------------------------------------------------------------------------------
Total Income (Loss) from Investment Operations (0.14) 0.55 0.84 0.27
- -----------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.18) (0.39) (0.40) (0.24)
From net realized gains - (0.16) - -
In excess of net investment income - - - -
In excess of net realized gains - - - -
- -----------------------------------------------------------------------------------------------------
Total Distributions Paid (0.18) (0.55) (0.40) (0.24)
- -----------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $10.15 $10.47 $10.47 $10.03
=====================================================================================================
TOTAL RETURN<F2> (1.03)% 5.38% 8.51% 2.63%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $37,373 $37,121 $25,329 $14,807
Ratio to average net assets of <F3>:
Expenses, net of waivers and reimbursements 0.85% 0.85% 0.85% 0.85%
Expenses, before waivers and reimbursements 1.24% 1.29% 1.41% 2.31%
Net investment income, net of waivers
and reimbursements 3.61% 3.67% 3.86% 3.84%
Net investment income, before waivers
and reimbursements 3.22% 3.23% 3.30% 2.38%
Portfolio Turnover Rate 45.00% 57.98% 46.12% 50.77%
- -----------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FIXED
INCOME
FUND
--------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR
SEPT. 30, ENDED ENDED ENDED ENDED ENDED
1999 MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
(UNAUDITED) 1999 1998 1997 1996 1995
- ---------------------------------------------- ----------------------------------------------------------------------------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.15 $10.42 $ 9.86 $10.10 $ 9.78 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.27 0.54 0.59 0.57 0.58 0.62
Net realized and unrealized gains (losses)
on investments (0.38) - 0.56 (0.12) 0.50 (0.22)
- ------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) from Investment Operations (0.11) 0.54 1.15 0.45 1.08 0.40
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.27) (0.54) (0.58) (0.56) (0.59) (0.62)
From net realized gains - (0.27) (0.01) (0.10) (0.17) -
In excess of net investment income - - - (0.01) - -
In excess of net realized gains - - - (0.02) - -
- -----------------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (0.27) (0.81) (0.59) (0.69) (0.76) (0.62)
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $9.77 $10.15 $10.42 $ 9.86 $10.10 $ 9.78
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN<F2> (0.75)% 5.18% 11.90% 4.59% 11.18% 4.16%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $323,169 $275,108 $181,197 $122,444 $101,339 $65,929
Ratio to average net assets of <F3>:
Expenses, net of waivers and reimbursements 0.90% 0.90% 0.90% 0.90% 0.90% 0.90%
Expenses, before waivers and reimbursements 1.07% 1.08% 1.09% 1.12% 1.14% 1.18%
Net investment income, net of waivers
and reimbursements 5.37% 5.15% 5.71% 5.69% 5.79% 6.48%
Net investment income, before waivers
and reimbursements 5.20% 4.97% 5.52% 5.47% 5.55% 6.20%
Portfolio Turnover 38.28% 84.85% 33.55% 87.64% 116.22% 55.27%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> For the period August 15, 1996 (commencement of operations) through March
31, 1997.
<F2> Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at net asset value at the end of the year. Total return
is not annualized for periods less than one year.
<F3> Annualized for periods less than a full year.
See Notes to the Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
FIXED INCOME FUNDS
<TABLE>
<CAPTION>
TAX-EXEMPT
FUND
----------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR YEAR
SEPT. 30, ENDED ENDED ENDED ENDED ENDED
1999 MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
(UNAUDITED) 1999 1998 1997 1996 1995
- ---------------------------------------------- ----------------------------------------------------------------------------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.63 $10.73 $10.24 $10.35 $10.08 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.22 0.45 0.47 0.50 0.48 0.48
Net realized and unrealized gains (losses)
on investments (0.58) 0.13 0.57 (0.06) 0.29 0.08
- -----------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) from Investment Operations (0.36) 0.58 1.04 0.44 0.77 0.56
- -----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.22) (0.45) (0.47) (0.47) (0.48) (0.48)
From net realized gains - (0.23) (0.08) (0.05) (0.02) -
In excess of net investment income - - - (0.03) - -
In excess of net realized gains - - - - - -
- -----------------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (0.22) (0.68) (0.55) (0.55) (0.50) (0.48)
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $10.05 $10.63 $10.73 $10.24 $10.35 $10.08
=============================================================================================================================
Total Return<F2> (3.17)% 5.47% 10.39% 4.32% 7.80% 5.78%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $227,458 $227,823 $167,220 $136,372 $125,113 $118,690
Ratio to average net assets of <F3>:
Expenses, net of waivers and reimbursements 0.85% 0.85% 0.85% 0.85% 0.85% 0.85%
Expenses, before waivers and reimbursements 1.08% 1.08% 1.09% 1.10% 1.10% 1.11%
Net investment income, net of waivers
and reimbursements 4.18% 4.13% 4.42% 4.61% 4.62% 4.95%
Net investment income, before waivers
and reimbursements 3.95% 3.90% 4.18% 4.36% 4.37% 4.69%
Portfolio Turnover Rate 83.97% 140.39% 74.32% 8.10% 60.50% 54.94%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
<TABLE>
<CAPTION>
CALIFORNIA
TAX-EXEMPT
FUND
--------------------------------------
SIX MONTHS
ENDED YEAR YEAR
SEPT. 30, ENDED ENDED
1999 MAR. 31, MAR. 31,
(UNAUDITED) 1999 1998<F1>
- ---------------------------------------------- -------------------------------------
SELECTED PER SHARE DATA
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.89 $10.76 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.21 0.43 0.41
Net realized and unrealized gains (losses)
on investments (0.58) 0.23 0.76
- ------------------------------------------------------------------------------------------
Total Income (Loss) from Investment Operations (0.37) 0.66 1.17
- ------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.21) (0.43) (0.41)
From net realized gains - (0.10) -
In excess of net investment income - - -
In excess of net realized gains - - -
- ------------------------------------------------------------------------------------------
Total Distributions Paid (0.21) (0.53) (0.41)
- ------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $10.31 $10.89 $10.76
==========================================================================================
Total Return<F2> (3.15)% 6.20% 11.86%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $76,417 $77,249 $39,943
Ratio to average net assets of <F3>:
Expenses, net of waivers and reimbursements 0.85% 0.85% 0.85%
Expenses, before waivers and reimbursements 1.13% 1.17% 1.60%
Net investment income, net of waivers
and reimbursements 3.98% 3.87% 4.01%
Net investment income, before waivers
and reimbursements 3.70% 3.55% 3.26%
Portfolio Turnover Rate 27.37% 62.55% 22.22%
- ------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL
FIXED INCOME
FUND
----------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR YEAR
SEPT. 30, ENDED ENDED ENDED ENDED ENDED
1999 MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
(UNAUDITED) 1999 1998 1997 1996 1995
- ---------------------------------------------- ----------------------------------------------------------------------------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.38 $ 9.85 $10.08 $10.62 $10.64 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.21 0.38 0.43 0.56 0.78 0.58
Net realized and unrealized gains (losses)
on investments (0.34) 0.58 0.02 (0.40) (0.16) 0.64
- -----------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) from Investment Operations (0.13) 0.96 0.45 0.16 0.62 1.22
- -----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.19) (0.32) (0.59) (0.58) (0.62) (0.56)
From net realized gains - (0.07) (0.09) (0.11) (0.02) -
In excess of net investment income - - - - - (0.02)
In excess of net realized gains - (0.04) - (0.01) - -
- -----------------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (0.19) (0.43) (0.68) (0.70) (0.64) (0.58)
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $10.06 $10.38 $ 9.85 $10.08 $10.62 $10.64
=============================================================================================================================
Total Return<F2> (1.25)% 9.68% 4.61% 1.39% 5.84% 12.77%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $15,907 $14,285 $13,675 $16,426 $15,665 $13,028
Ratio to average net assets of <F3>:
Expenses, net of waivers and reimbursements 1.15% 1.15% 1.15% 1.15% 1.15% 1.15%
Expenses, before waivers and reimbursements 1.82% 1.96% 1.87% 1.96% 2.00% 2.42%
Net investment income, net of waivers
and reimbursements 4.30% 4.69% 4.98% 5.49% 5.75% 5.96%
Net investment income, before waivers
and reimbursements 3.63% 3.88% 4.26% 4.68% 4.90% 4.69%
Portfolio Turnover Rate 3.32% 16.49% 30.26% 37.76% 52.05% 43.24%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> For the period April 8, 1997 (commencement of operations) through March 31,
1998.
<F2> Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at net asset value at the end of the year. Total return
is not annualized for periods less than one year.
<F3> Annualized for periods less than a full year.
See Notes to the Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
FIXED INCOME FUNDS
HIGH YIELD
HIGH YIELD FIXED
MUNICIPAL INCOME
FUND FUND
----------------------- -----------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR
SEPT. 30, ENDED SEPT. 30 ENDED
1999 MAR. 31, 1999 MAR. 31,
(UNAUDITED) 1999<F1> (UNAUDITED) 1999<F1>
- ---------------------------------------------- ----------------------- -----------------------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.01 $10.00 $10.10 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.22 0.05 0.41 0.11
Net realized and unrealized gains (losses)
on investments (0.54) - (0.40) 0.08
- ---------------------------------------------------------------------------------------------------
Total Income (Loss) from Investment Operations (0.32) 0.05 0.01 0.19
- ---------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.22) (0.04) (0.41) (0.09)
From net realized gains - - - -
In excess of net investment income - - - -
In excess of net realized gains - - - -
- ---------------------------------------------------------------------------------------------------
Total Distributions Paid (0.22) (0.04) (0.41) (0.09)
- ---------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $9.47 $10.01 $9.70 $10.10
===================================================================================================
TOTAL RETURN<F2> (3.27)% 0.57% 0.02% 2.06%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $17,023 $10,033 $101,326 $40,864
Ratio to average net assets of <F3>:
Expenses, net of waivers and reimbursements 0.85% 0.85% 0.90% 0.90%
Expenses, before waivers and reimbursements 1.66% 5.60% 1.16% 2.18%
Net investment income, net of waivers
and reimbursements 4.76% 2.92% 9.00% 6.78%
Net investment income (loss), before waivers
and reimbursements 3.95% (1.83)% 8.74% 5.50%
Portfolio Turnover Rate 8.35% 0.00% 41.96% 0.00%
- ---------------------------------------------------------------------------------------------------
</TABLE>
<F1> Commenced investment operations after the close of business on December 31,
1998.
<F2> Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at net asset value at the end of the year. Total return
is not annualized for periods less than one year.
<F3> Annualized for periods less than a full year.
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
U.S. GOVERNMENT FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES - 64.8%
FANNIE MAE - 12.7%
FNMA Notes
$ 12,000 5.625%, 3/15/01 $11,947
11,750 5.25%, 1/15/03 11,405
10,000 5.625%, 5/14/04 9,702
------------
33,054
------------
FANNIE MAE REMIC TRUST - 18.0%
2,145 Series 1996-M7, Class A,
6.554%, 9/17/04 2,146
10,000 Series 1997-M5, Class C,
6.74%, 8/25/07 9,809
11,250 Series 1998-24, Class QB,
6.00%, 9/18/12 11,225
319 Series 1992-200, Class E,
6.25%, 6/25/17 318
12,541 Pool #440700, 6.00%, 11/1/28 11,694
12,555 Pool #452421, 6.00%, 12/1/28 11,707
------------
46,899
------------
FEDERAL HOME LOAN BANK - 9.2%
24,000 FHLB Note, 5.50%, 7/14/00 23,940
------------
FREDDIE MAC - 10.9%
12,000 Series 2080, Class PE,
6.00%, 11/15/21 11,599
682 Pool #410092, 6.943%, 11/1/24 699
7,198 Group G00767, 7.50%, 8/1/27 7,229
9,505 Group C18079, 6.00%, 11/1/28 8,872
------------
28,399
------------
FREDDIE MAC MTN - 10.6%
12,000 5.75%, 7/15/03 11,782
16,000 6.625%, 9/15/09 15,948
------------
27,730
------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION - 2.0%
102 Pool #268360, 10.00%, 4/15/19 112
124 Pool #270288, 10.00%, 6/15/19 136
29 Pool #270297, 10.00%, 6/15/19 32
49 Pool #302836, 10.00%, 2/15/21 54
4,991 Pool #476998, 6.50%, 7/15/29 4,771
------------
5,105
------------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
TENNESSEE VALLEY AUTHORITY - 1.4%
$ 3,700 Series B, Putable 7/15/01,
6.235%, 7/15/45 $ 3,707
------------
Total U.S. Government Agencies
(cost $172,150) 168,834
------------
U.S. GOVERNMENT
OBLIGATIONS - 31.1%
U.S. TREASURY NOTES - 26.5%
17,750 7.75%, 1/31/00 17,891
16,940 6.625%, 7/31/01 17,221
18,010 5.75% , 10/31/02 18,016
15,000 7.50%, 2/15/05 16,031
------------
69,159
------------
U.S. TREASURY INFLATIONARY INDEXED
NOTES - 4.6%
11,990 3.625%, 1/15/08 11,972
------------
Total U.S. Government Obligations
(cost $82,347) 81,131
------------
SHORT-TERM INVESTMENT - 3.2%
(cost $8,421)
8,421 FHLB Discount Note,
5.17%, 10/1/99 8,421
------------
Total Investments - 99.1%
(cost $262,918) 258,386
Other Assets less Liabilities - 0.9% 2,298
------------
NET ASSETS - 100.0% $260,684
============
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
INTERMEDIATE TAX-EXEMPT FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 94.7%
ALABAMA - 3.1%
$9,360 West Jefferson Amusement & Public Park
Authority Revenue Bond, Visionland
Project, Prerefunded, 8.00%, 12/1/06 $11,310
------------
ALASKA - 1.8%
North Slope Borough Capital Appreciation
G.O. Bond (MBIA Insured)
5,200 Series A, 0.00%, 6/30/01 4,820
2,000 Series B, 0.00%, 6/30/01 1,854
------------
6,674
------------
ARIZONA - 2.0%
2,000 Maricopa County Unified School District
No. 11, Peoria G.O. Bond, 5.60%, 7/1/07 2,071
5,000 Mesa City Project of 1987 G.O. Bond
(MBIA Insured), Prerefunded,
5.70%, 7/1/03 5,288
------------
7,359
------------
CALIFORNIA - 1.7%
5,500 California Statewide Communities
Development Authority Revenue
Refunding Bond, Series A-2, Irvine
Apartment Communities,
4.90%, Mandatory Put 5/15/08 5,243
1,000 Foothill/Eastern Transportation Corridor
Agency Toll Road Senior Lien Revenue
Bond, Series A, 0.00%, 1/1/05 789
------------
6,032
------------
COLORADO - 8.1%
2,500 Arapahoe County School District No. 5
Cherry Creek G.O. Refunding Bond,
Series A, 5.25%, 12/15/04 2,574
5,750 Jefferson County School
District No. R-001 G.O. Bond, Series A
(FGIC Insured), 6.00%, 12/15/05 6,180
Metropolitan Football Stadium
Revenue Bond (MBIA Insured)
20,000 Series B, 0.00%, 1/1/04 16,367
5,000 Series A, 0.00%, 1/1/07 3,472
610 Metropolitan Wastewater Reclamation
District Gross Revenue Refunding Bond,
Series B (MBIA Insured), 6.75%, 4/1/03 656
------------
29,249
------------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CONNECTICUT - 0.3%
$1,000 Connecticut State Special Tax Obligation
Revenue Bond, Series B (FSA Insured),
Transportation Infrastructure,
5.50%, 11/1/05 $ 1,046
------------
DISTRICT OF COLUMBIA - 1.9%
5,000 District of Columbia G.O. Refunding Bond,
Series B (FSA Insured), 5.5%, 6/1/10 5,097
1,700 District of Columbia Revenue Bond,
Georgetown University (MBIA Insured),
4.70%, 4/1/06 1,694
------------
6,791
------------
FLORIDA - 6.0%
Broward County School District G.O. Bond
380 6.75%, 2/15/00 384
1,000 6.00%, 2/15/06 1,052
3,195 Dade County Road G.O. Bond
(Escrowed to Maturity), 5.00%, 7/1/10 3,184
3,375 Dade County Water and Sewer System
Revenue Bond (FGIC Insured),
6.25%, 10/1/06 3,678
Florida State Division of Bond Financing
Improvement Department of
Environmental Protection Revenue
Bond, PRSV 2000-A (AMBAC Insured)
2,270 5.50%, 7/1/06 2,372
3,000 5.50%, 7/1/07 3,118
1,150 Jacksonville District Water & Sewer
Revenue Bond (MBIA Insured),
Prerefunded, 5.00%, 10/1/08 1,152
1,500 Jacksonville Electric Authority Revenue
Refunding Bond, St. John's River Power
System, 6.50%, 10/1/01 1,556
5,000 Venice City Health Facilities Revenue
Bond, Venice Hospital, Inc. Project,
Prerefunded, 6.00%, 12/1/04 5,415
------------
21,911
------------
GEORGIA - 2.8%
Atlanta City Airport Facilities Revenue
Refunding Bond (AMBAC Insured)
1,200 5.50%, 1/1/01 1,220
2,500 6.00%, 1/1/04 2,641
1,850 Cobb County School District G.O. Bond,
5.00%, 2/1/03 1,886
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
GEORGIA - 2.8% (CONT'D.)
$3,500 Georgia Municipal Electric Authority
Power Revenue Bond, Series CC,
4.60%, 1/1/03 $ 3,495
1,000 Municipal Electric Authority of Georgia
General Resolution Project Revenue Bond
Series A (MBIA Insured), 6.00%, 1/1/07 1,066
------------
10,308
------------
HAWAII - 0.3%
1,000 Hawaii G.O. Bond, Series CT (FSA Insured)
5.25%, 9/1/05 1,028
------------
ILLINOIS - 6.5%
Champaign County Community
Unified School District No. 116 Urbana
G.O. Bond, Series C (FGIC Insured),
3,395 0.00%, 1/1/06 2,481
1,065 0.00%, 1/1/07 735
2,760 0.00%, 1/1/08 1,795
850 0.00%, 1/1/11 453
3,895 Chicago City Board of Education Capital
Appreciation School Reform-B-1
G.O. Bond (FGIC Insured), 0.00%, 12/1/09 2,277
3,000 Chicago City G.O. Bond (AMBAC Insured),
Prerefunded, 5.90%, 7/1/05 3,227
1,000 Chicago City Wastewater Transmission
Revenue Bond (FGIC Insured),
Prerefunded, 6.30%, 1/1/03 1,075
2,000 Chicago Tax Incremental Allocation Bond,
Series A (AMBAC Insured), Central Loop
Redevelopment Project, 5.25%, 6/1/06 2,044
2,500 Illinois Sports Facilities Authority Revenue
Bond, Series A (AMT) (MBIA Insured),
5.00%, 6/15/09 2,445
Illinois State Development Finance
Authority Economic Development Revenue
Bond, Latin School of Chicago Project
500 5.60%, 8/1/18 461
1,000 5.65%, 8/1/28 916
2,000 Illinois State Development Finance
Authority Solid Waste Disposal Revenue
Bond, 5.05%, 1/1/10 1,847
1,750 Illinois State Educational Facilities
Authority Revenue Bond, Reserve 3,
4.75%, Mandatory Put 3/1/07 1,718
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
ILLINOIS - 6.5% (CONT'D.)
$2,530 Illinois State School District Capital
Appreciation Revenue Bond, Project 304
(FSA Insured), 0.00%, 1/1/07 $ 1,752
310 McLean County Public Building
Commission Revenue Bond, Law and
Justice Center Project, 7.10%, 11/1/00 320
------------
23,546
------------
INDIANA - 0.4%
1,500 Tippecanoe County School Building
Revenue Bond (MBIA Insured),
5.50%, 7/15/01 1,535
------------
IOWA - 1.3%
5,000 Chillicothe PCR Refunding Bond, IES
Utilities, Inc. Project, 4.25%, 11/1/23 4,881
------------
KANSAS - 1.7%
4,500 Burlington Environmental Improvement
Revenue Bond, Series D, Kansas City
Power & Light Co. Project,
4.35%, Mandatory Put 9/1/01 4,481
1,700 Kansas City G.O. Refunding Bond,
Series A (MBIA Insured), 5.20%, 9/1/06 1,741
------------
6,222
------------
KENTUCKY - 1.6%
1,380 Kentucky Economic Finance Authority
Revenue Bond, Series A, Catholic Health
Project, 5.50%, 12/1/05 1,435
2,570 Kentucky State Property and Buildings
Commission Revenue Refunding Bond,
Project No. 59, 5.00%, 11/1/01 2,610
2,000 Kentucky State Turnpike Authority
Economic Development Road Revenue
Refunding Bond, Revitalization Project,
5.50%, 1/1/01 2,031
------------
6,076
------------
LOUISIANA - 0.3%
1,000 St. Charles Parish PCR Refunding Bond,
Union Carbide Corp. Project,
5.10%, 1/1/12 937
------------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
INTERMEDIATE TAX-EXEMPT FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
94.7% (CONT'D.)
MARYLAND - 0.5%
$1,650 Maryland State and Local Facilities
G.O. Bond, 4.30%, 7/15/03 $ 1,649
------------
MASSACHUSETTS - 3.5%
1,735 Massachusetts State Health & Educational
Facilities Authority Revenue Bond, Series A,
Caregroup, Inc. (MBIA Insured)
5.00%, 7/1/05 1,761
3,625 Massachusetts State Health & Educational
Facilities Authority Revenue Bond, Series B,
Partners Healthcare System, 5.25%, 7/1/12 3,462
2,625 Massachusetts State Municipal Wholesale
Electric Co. and Power Supply System
Revenue Bond (AMBAC Insured),
5.10%, 7/1/07 2,658
Massachusetts State Water Reserve
Authority General Revenue Bond, Series A
2,500 7.25%, 4/1/01 2,585
2,000 Prerefunded, 6.50%, 7/15/02 2,152
------------
12,618
------------
MICHIGAN - 1.4%
Detroit City G.O. Bond, Series A,
Self-Insurance,
2,925 5.60%, 5/1/01 2,974
1,000 5.70%, 5/1/02 1,025
1,000 Romulus Community Schools Refunding
G.O. Bonds (FSA Insured), 4.25%, 5/1/10 914
------------
4,913
------------
MISSISSIPPI - 1.5%
2,000 Mississippi State G.O. Refunding Bond,
6.05%, 8/15/03 2,116
3,320 Mississippi State Highway Revenue Bond,
Series 39, Four Lane Highway Program,
5.25%, 6/1/09 3,380
------------
5,496
------------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
NEBRASKA - 2.5%
American Public Energy Agency Gas
Supply Revenue Bond
$3,350 4.00%, 9/1/06 $3,141
5,500 4.30%, 3/1/11 4,976
1,000 Nebraska State Public Power District
Supply System Revenue Bond, Series B,
Escrowed to Maturity, 4.80%, 1/1/03 1,013
------------
9,130
------------
NEVADA - 0.1%
310 Nevada State Bank Municipal G.O. Bond,
Project No. 3-C, Escrowed to Maturity,
7.625%, 5/1/01 314
------------
NEW HAMPSHIRE - 0.2%
620 Manchester City G.O. Refunding Bond,
Series B, 4.70%, 7/1/01 626
------------
NEW JERSEY - 1.7%
New Jersey Health Care Facilities
Financing Authority Palisades Medical
Center Obligation Group Revenue
Bond (ACA Insured),
1,770 5.125%, 7/1/14 1,674
1,000 5.20%, 7/1/19 919
3,500 New Jersey State G.O. Bond, Series E,
5.00%, 7/15/04 3,577
------------
6,170
------------
NEW MEXICO - 0.5%
610 Bernalillo County G.O. Bond,
3.875%, 8/1/03 596
1,000 Santa Fe City Revenue Bond, Series A
(AMBAC Insured),
Prerefunded, 6.30%, 6/1/04 1,075
------------
1,671
------------
NEW YORK - 9.9%
Long Island Power Authority New York
Electrical Systems Revenue Refunding Bond
6,885 4.00%, 4/1/01 6,852
1,000 4.25%, 4/1/01 1,000
4,500 5.00%, 4/1/02 4,560
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
NEW YORK - 9.9% (CONT'D.)
$ 3,735 Middletown City School District G.O.
Bond (FGIC Insured), 4.75%, 11/1/00 $ 3,773
5,200 New York City G.O. Bond
Series A, 5.00%, 8/1/05 5,249
4,795 New York City Transitional Financing
Authority Future Tax Secured
Revenue Bond, Series B (FGIC Insured),
4.75%, 11/15/13 4,414
2,500 New York State Dormitory Authority
Revenue Bond, Series A, State University
Educational Facilities, 5.50%, 5/15/03 2,584
New York State G.O. Refunding Bond
2,500 6.625%, 8/1/01 2,607
1,000 6.00%, 10/1/06 1,071
2,265 New York State Urban Development Corp.
Revenue Bond, Series B, Correctional
Facilities Services Contract, 5.00%, 1/1/03 2,294
1,250 New York State Urban Development Corp.
Subordinate Lien Revenue Bond,
5.50%, 7/1/16 1,209
------------
35,613
------------
NORTH CAROLINA - 4.7%
North Carolina Eastern Municipal Power
Agency Revenue Bond, Series B,
1,500 6.00%, 1/1/06 1,526
5,000 6.125%, 1/1/09 5,076
2,505 Series A, 5.20%, 1/1/10 2,359
10,000 North Carolina State Medical Care
Commission Hospital Revenue Bond,
Series A (MBIA Insured),
Pitt County Memorial Hospital,
4.75%, 12/1/28 8,263
------------
17,224
------------
OKLAHOMA - 1.5%
2,850 Grand River Dam Authority Revenue
Refunding Bond (MBIA Insured),
5.70%, 6/1/05 3,000
2,740 Oklahoma Development Financing
Authority Revenue Refunding Bond,
Series A, Hillcrest Healthcare System,
5.20%, 8/15/11 2,576
------------
5,576
------------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
OREGON - 1.1%
$ 540 Clackamas and Washington Counties
School District No. 003 G.O. Bond,
7.00%, 8/1/02 $ 578
3,445 Washington County School District
No. 48J G.O. Refunding Bond,
5.00%, 8/1/06 3,503
------------
4,081
------------
PENNSYLVANIA - 4.3%
4,225 Erie County IDR Bond, Series A,
Hammer, 6.30%, 5/15/00 4,233
3,000 Pennsylvania State Intergovernmental
Authority Special TRB (FGIC Insured),
Escrowed to Maturity, 6.00%, 6/15/02 3,103
2,630 Philadelphia City Hospitals and Higher
Education Facilities Revenue Bond,
Series A, Jefferson Health System
(MBIA Insured), 5.25%, 5/15/11 2,601
3,300 Philadelphia City Intergovernmental
Funding Special TRB (FGIC Insured),
Prerefunded, 6.75%, 6/15/05 3,645
1,910 St. Mary Hospital Authority Revenue Bond,
Series A, Bucks County Catholic Health
Initiatives, 5.00%, 12/1/05 1,922
------------
15,504
------------
PUERTO RICO - 2.6%
Puerto Rico Commonwealth Public
Improvement G.O. Refunding Bond,
6,675 0.00%, 7/1/04 5,368
4,000 5.00%, 7/1/05 4,064
------------
9,432
------------
SOUTH CAROLINA - 2.1%
3,500 Columbia Waterworks and Sewer System
Capital Appreciation Revenue Bond,
0.00%, 2/1/03 3,005
South Carolina State Public Service
Authority Revenue Refunding Bond,
Series B (FGIC Insured)
2,650 6.50%, 1/1/04 2,844
1,700 6.50%, 1/1/05 1,839
------------
7,688
------------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
INTERMEDIATE TAX-EXEMPT FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
94.7% (CONT'D.)
TENNESSEE - 1.3%
$1,000 Chattanooga Health, Educational
& Housing Facilities Board Revenue
Refunding and Hospital Improvement
Bond, Siskin Hospital, 5.25%, 6/1/28 $ 864
2,000 Memphis City Electric System Revenue
Refunding Bond, 5.80%, 1/1/03 2,083
1,870 Metropolitan Government Nashville and
Davidson Counties G.O. Bond,
4.50%, 5/15/02 1,881
------------
4,828
------------
TEXAS - 5.3%
2,000 Brazos River Authority PCR Refunding
Bond, Series A,
3.70%, Mandatory Put 4/1/00 1,997
2,000 El Paso City Independent School District
Capital Appreciation G.O. Bond (PSF of
Texas Gtd.), 0.00%, 2/15/02 1,799
7,450 Harris County Revenue Refunding Senior
Subordinate Lien Toll Road Bond (AMBAC
Insured), 4.95%, 8/15/06 7,541
2,955 Houston Independent School District
Capital Appreciation Revenue Bond,
Series B, 0.00%, 9/15/01 2,710
3,000 Lower Colorado River Authority Revenue
Bond, Series A, 5.875%, 5/15/15 3,058
2,000 University of Texas Revenue Bond,
Series B, 5.50%, 8/15/11 2,040
------------
19,145
------------
UTAH - 1.0%
800 Alpine School District G.O. Bond (School
Board Gtd.), 5.25%, 3/15/08 820
1,000 Utah State G.O. Bond, Series A,
5.00%, 7/1/06 1,015
2,000 Utah State Intermountain Power Agency
Power Supply Revenue Refunding Bond,
Series D, 5.00%, 7/1/21 1,785
------------
3,620
------------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
VIRGINIA - 5.2%
$3,250 Arlington County G.O. Bond,
5.80%, 12/1/02 $ 3,406
3,000 Charles City and County IDA Solid Waste
Disposal Facility Revenue Refunding Bond,
Waste Management, Inc. Project,
4.875%, 2/1/09 2,728
9,100 Fairfax County G.O. Bond, Series C
(State Aid Withholding), 5.25%, 5/1/08 9,271
3,230 Virginia State G.O. Bond,
5.375%, 6/1/05 3,365
------------
18,770
------------
WASHINGTON - 1.9%
310 Pierce County School District No. 003
Puyallup G.O. Bond, Series A,
7.75%, 12/1/01 332
310 Pierce Fife County School District
No. 417 G.O. Bond, Series A,
7.85%, 12/1/01 332
450 Seattle Limited Tax G.O. Bond, Escrowed
to Maturity, 7.00%, 3/1/01 467
500 Snohomish County School District
No. 015 Edmonds G.O. Bond,
7.00%, 12/1/01 528
5,000 Washington State Public Power Supply
System Revenue Bond, Series A, Nuclear
Project No. 2, 5.00%, 7/1/03 5,073
------------
6,732
------------
WISCONSIN - 2.1%
4,415 Wisconsin State G.O. Refunding Bond,
Series 3, 6.125%, 11/1/06 4,771
2,000 Wisconsin State Health and Educational
Facilities Authority Revenue Bond,
Series A, Aurora Health Care, Inc.,
5.60%, 2/15/29 1,807
1,000 Wisconsin State Health and Educational
Facilities Authority Revenue Bond,
Children's Hospital of Wisconsin, Inc.
(AMBAC Insured), 5.625%, 2/15/12 1,007
------------
7,585
------------
Total Municipal Investments
(cost $347,446) 343,290
------------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
NUMBER OF
SHARES VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
OTHER - 5.2%
$11,100 AIM Tax Free Cash Reserve Fund 11,100
7,846 Provident Municipal Fund 7,846
------------
Total Other
(cost $18,946) 18,946
------------
Total Investments - 99.9%
(cost $366,392) 362,236
Other Assets less Liabilities - 0.1% 503
------------
NET ASSETS - 100.0% $362,739
============
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
FLORIDA INTERMEDIATE TAX-EXEMPT FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 96.7%
COLORADO - 3.7%
$2,000 Metropolitan Football Stadium District
Colorado Sales TRB, Series A
(MBIA Insured), 0.00%, 1/1/07 $1,389
------------
FLORIDA - 76.8%
1,000 Dade County G.O. Bond, Series DD
(AMBAC Insured),
7.60, 10/1/06 1,169
1,000 Dade County Refunding Bond
(FGIC Insured), 12.00%, 10/1/02 1,212
500 Dade County Sales TRB (AMBAC Insured),
6.00%, 10/1/01 518
400 Dade County Seaport Revenue
Refunding Bond (MBIA Insured),
6.50%, 10/1/10 448
150 Duval County School District G.O.
Bond, Series 1992 (AMBAC Insured),
6.125%, 8/1/04 159
900 Florida Gas Utility Revenue Bond,
Gas Project No. 1 (FSA Insured),
5.00%, 12/1/02 920
1,170 Florida Ports Financing Community
Revenue Bond, State Transition Trust Fund
Intermodal Program (AMT) (FGIC Insured),
5.50%, 10/1/17 1,139
100 Florida State Board of Education
Capital Outlay Revenue Bond,
Series 1992 B, Prerefunded,
5.30%, 6/1/02 104
1,440 Florida State Board of Education
Capital Outlay Revenue Bond,
Series 1998 A, 5.25%, 1/1/12 1,439
1,000 Florida State Board of Education G.O. Bond,
Series C, Escrowed to Maturity,
6.00%, 5/1/03 1,045
500 Florida State Department of Transportation
Right of Way Revenue Refunding Bond,
6.00%, 7/1/04 533
200 Florida State Municipal Power Agency
Revenue Bond, Power Supply Project
(AMBAC Insured),
Prerefunded, 6.25%, 10/1/01 212
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
$ 350 Florida State Municipal Power Agency
Revenue Bond, St. Lucie Project
(FGIC Insured), 5.40%, 10/1/05 $ 362
250 Florida State Sunshine Skyway
Revenue Refunding Bond, Series 1991,
6.40%, 7/1/04 261
1,000 Gainesville City Utility Systems
Revenue Refunding Bond, Series 1979 A,
6.20%, 10/1/02 1,028
500 Hillsborough County Aviation Authority
Revenue Bond (FGIC Insured),
6.60%, 10/1/03 510
1,780 Hillsborough County IDA IDR Health
Facilities Project, Series A, University
Community Hospital Bond,
4.50%, 8/15/03 1,759
500 Jacksonville City Health Facilities
Authority Revenue Bond, Series A,
Charity Obligation Group Project
(MBIA Insured), 5.00%, 8/15/11 489
1,500 Jacksonville District Water and Sewer
Revenue Bond (MBIA Insured),
Prerefunded, 5.00%, 10/1/08 1,502
450 Kissimmee City Suburban Water
and Sewer System Revenue Refunding
Bond (AMBAC Insured),
5.75%, 10/1/01 464
100 Kissimmee City Utility Authority
Electric System Revenue Refunding
Bond, Series 1991 (FGIC Insured),
Prerefunded, 6.50%, 10/1/01 106
370 Lee County Refunding Bond, Series 1997 A
(MBIA Insured), 5.75%, 10/1/11 390
1,270 Lee County School Board COP
Revenue Refunding Bond, Series 1996 A
(FSA Insured), 6.00%, 8/1/03 1,341
500 Manatee County Public Utilities Revenue
Bond, Series 1991 A (MBIA Insured),
Prerefunded, 6.75%, 10/1/01 534
1,000 Manatee County School Boards COP
Series 1998 A (MBIA Insured),
4.85%, 7/1/12 948
1,200 Marion County Hospital District Revenue
Refunding & Improvement Bond, Health
Systems, Monroe Regional Medical Center,
4.625%, 10/1/03 1,190
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
FLORIDA - 76.8% (CONT'D.)
$1,000 Miami-Dade County Florida S.O.
Refunding Subordinate Bond, Series 1997 A
(MBIA Insured), 0.00%, 10/1/14 $424
625 Orange County HFA Revenue Bond,
Series 1999 G, 5.20%, 9/1/14 593
100 Orlando City Utility Commission
Water and Electric Revenue Refunding
Bond, Series 1992, 5.75%, 10/1/05 106
4,000 Palm Beach County Solid Waste Authority
Revenue Capital Appreciation Bond,
Series 1998 A (AMBAC Insured),
0.00%, 10/1/12 1,973
50 Reedy Creek Improvement District Bond,
Series 1991 A, Prerefunded, 6.00%, 6/1/01 52
200 Reedy Creek Improvement District Bond,
Series 1991 A, Unrefunded Balance,
6.00%, 6/1/02 207
400 Santa Rosa Bay Bridge Authority Capital
Appreciation Bond, Series 1996 A,
0.00%, 7/1/06 280
200 Sunrise City Utility Systems Revenue
Capital Appreciation Bond, Series 1996 A
(AMBAC Insured), 0.00%, 10/1/01 184
1,000 Tampa Bay Water Utility Systems Capital
Appreciation Revenue Bond
(FGIC Insured), 0.00%, 10/1/06 712
750 Tampa City Sports Authority Revenue
Bond, Stadium Project (MBIA Insured),
6.00%, 1/1/06 803
1,035 Tampa Hospital Capital Improvement
Revenue Bond, Series 1999 A,
4.75%, 7/1/11 942
1,695 Tampa Water and Sewer Revenue Bond,
5.50%, 10/1/19 1,651
1,000 West Orange Healthcare District Revenue
Bond, Series A,
5.25%, 2/1/03 1,003
------------
28,712
------------
MASSACHUSETTS - 2.6%
1,000 Massachusetts State Health and
Educational Facilities Revenue Bond,
Group A, 5.25%, 7/1/07 974
------------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
NORTH CAROLINA - 3.8%
$1,400 North Carolina Eastern Municipal Power
Agency Power Systems Revenue Bond,
Series A, 5.75%, 1/1/04 $ 1,427
------------
PUERTO RICO - 9.8%
1,000 Puerto Rico Commonwealth Public
Improvement Capital Appreciation G.O.
Refunding Bond, 0.00%, 7/1/04 804
Puerto Rico Industrial, Tourist, Educational,
Medical & Environmental Central Facilities
Revenue Refunding Bond, Series A,
San Lucas & Cristo Project,
385 4.65%, 6/1/01 383
435 4.80%, 6/1/02 432
595 4.90%, 6/1/03 588
1,400 Puerto Rico Public Buildings Authority
Guaranteed Public Education and Health
Facilities Revenue Refunding Bond,
Series M (Commonwealth Gtd.),
5.20%, 7/1/02 1,432
------------
3,639
------------
Total Municipal Investments
(cost $36,812) 36,141
------------
NUMBER
OF SHARES
(000S)
- -----------
OTHER - 10.3%
29 Dreyfus Tax-Exempt Cash Management
Fund No. 264 29
3,816 Federated Tax Free Trust Money
Market Fund No. 15 3,816
------------
Total Other
(cost $3,845) 3,845
------------
Total Investments - 107.0%
(cost $40,657) 39,986
Liabilities less Other Assets - (7.0)% (2,613)
------------
NET ASSETS - 100.0% $37,373
============
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
FIXED INCOME FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
ASSET-BACKED SECURITIES - 16.9%
$ 5,815 California Infrastructure PG&E-1,
Series 1997-1, Class A5,
6.25%, 6/25/04 $5,792
466 Chevy Chase Auto Receivables Trust,
Series 1997-2, Class A,
6.35%, 1/15/04 465
2,540 Commercial Mortgage Asset Trust,
Series 1999-C1, Class A3,
6.64%, 9/17/10 2,426
1,951 Contimortgage Net Interest Margin Notes,
Series 1998-A, Class A,
7.92%, 3/16/28<F1> 1,893
3,420 CS First Boston Mortgage Securities Corp.,
Series 1998-C2, Class A1,
5.96%, 12/15/07 3,296
580 Delta Funding Mortgage Corp., I.O.,
Series 1991-1, Class A-4,
7.50%, 3/15/06<F1> 2
97 DLJ Mortgage Acceptance Corp.,
7.25%, 5/25/24 98
31,534 DLJ Mortgage Acceptance Corp., I.O.,
7.50%, 11/12/21<F1> 1,941
4,395 First Union-Lehman Brothers-Bank of
America, Series 1998-C2, Class A2,
6.56%, 11/18/08 4,250
3,475 GMACC Commercial Mortgage Securities
Inc., Series 1999-C3,Class A1B,
7.27%, 8/15/09 3,505
2,695 IMC Excess Cashflow Securities Trust,
Series 1997-A, Class A,
7.41%, 11/26/28<F1> 1,816
3,400 LB Commercial Conduit Mortgage Trust,
Series 1998-C4, Class B,
6.36%, 10/15/08 3,321
1,100 Morgan Stanley Capital I,
Series 1998-WF1, Class A2,
6.55%, 12/15/07 1,066
3,430 Morgan Stanley Capital I,
Series 1999-LIFE, Class A2,
7.11%, 7/15/09 3,421
2,090 Mortgage Capital Funding, Inc.,
Series 1998-MC1, Class A2,
6.66%, 1/18/08 2,038
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
$8,750 Nationslink Funding Corp.,
Series 1999-1, Class A2,
6.32%, 11/20/08 $ 8,294
347 Olympic Automobile Receivables Trust,
Series 1995-A, Class A,
7.875%, 7/15/01 347
1,261 PNC Mortgage Securities Corp.,
8.09%, 4/28/27<F1> 1,206
306 Residential Asset Securitization Trust,
Series 1997-A8 C, Class A3,
7.00%, 10/25/27 305
723 TMS Auto Grantor Trust,
Series 1997-3, Class A2,
6.12%, 12/20/03 724
535 Western Financial Grantor Trust,
Series 1995-4, Class A-1,
6.20%, 2/1/02 535
8,000 WFS Financial Owner Trust,
Series 1998-B, Class A3,
5.95%, 7/20/01 7,991
------------
Total Asset-Backed Securities
(cost $57,274) 54,732
------------
CORPORATE/GOVERNMENT BONDS
AND NOTES - 40.2%
AIRLINES - 1.9%
6,000 U.S. Airways Pass-Thru,
8.36%, 1/20/19 6,042
------------
BANKS - 2.3%
7,500 Bank One Corp.,
6.4%, 8/01/02 7,452
------------
BEVERAGES - 0.4%
1,473 Coca-Cola Enterprise,
7.00%, 10/1/26 1,477
------------
DIVERSIFIED FINANCIAL SERVICES - 14.6%
6,450 Asian Development Bank,
6.375%, 10/1/28 6,287
19 Berkshire Hathaway, Inc.,
9.75%, 1/15/18 20
6,125 Caterpillar Financial Services Corp.,
6.875%, 8/01/04 6,127
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 14.6% (CONT'D.)
$6,900 CIT Group Inc.,
5.85%, 5/26/00 $ 6,811
4,765 Diageo Capital PLC
6.25%, 6/24/04 4,747
7,500 Ford Motor Credit Co.,
6.00%, 1/14/03 7,325
2,565 General Motors Acceptance Corp.,
5.85%, 1/14/09 2,366
Green Tree Financial Corp.
2,046 Series 1994-B, Class A,
7.85%, 7/15/04 2,049
2,700 Series 1886-9, Class A,
7.69%, 1/15/28 2,710
2,700 Series 1997-6, Class B1,
7.17%, 1/15/29 2,536
2,565 Household Finance Corp.,
5.875%, 2/01/09 2,308
4,000 Transamerica Finance Corp.,
7.25%, 8/15/02 4,017
------------
47,303
------------
ENVIRONMENTAL CONTROLS - 1.5%
5,000 Waste Management, Inc., 7.10%, 8/1/26 4,725
------------
FOOD - 1.2%
3,900 Diageo PLC, 7.45%, 4/15/35 3,949
------------
FANNIE MAE - 7.1%
FNMA
9,050 5.625%, 5/14/04 8,781
9,050 5.25%, 1/15/09 8,156
6,125 6.375%, 6/15/09 6,001
------------
22,938
------------
INSURANCE - 2.3%
2,900 Anthem Insurance, Inc., 9.00%, 4/1/27<F1> 2,777
Lumberman's Mutual Casualty Co.
3,910 9.15%, 7/1/26<F1> 3,839
765 8.45%, 12/1/37<F1> 667
------------
7,283
------------
PETROLEUM PRODUCTS - 0.8%
3,450 Petrozuata Finance, Inc.,
8.22%, 4/1/17<F1> 2,553
------------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
SPECIAL PURPOSE - 0.9%
$ 3,080 Bunge Trade Ltd., 9.25%, 5/1/02<F1> $ 2,981
------------
TELEPHONE - 3.6%
6,540 AT&T Corp., 6.00%, 3/15/09 6,077
5,655 MCI Worldcom, Inc., 6.125%, 8/15/01 5,623
------------
11,700
------------
TRANSPORTATION - 1.8%
5,950 Burlington Northern Santa Fe Corp.,
6.53%, 7/15/37 5,758
------------
UTILITIES - 1.8%
5,735 PP&L Transition Bond Co. LLC,
Series 1999-1, Class A5,
6.83%, 3/25/07 5,752
------------
Total Corporate/Government Bonds
and Notes
(cost $134,894) 129,913
------------
U.S. GOVERNMENT AGENCIES - 9.6%
COLLATERALIZED MORTGAGE OBLIGATIONS - 0.6%
FHLMC
132 Series 1248, Class B, 7.00%, 3/15/22 131
440 Series 1591, Class FH, 7.00%, 9/15/22 450
810 Series 1591, Class SH, 5.03%, 9/15/22 610
FNMA REMIC Trusts,
10,661 Series 1997-20, I.O., 8.00%, 3/25/27 673
------------
1,864
------------
MORTGAGE BACKED SECURITIES - 9.0%
4,487 FHLMC - Gold, Pool C00835,
6.50%, 7/01/29 4,304
5,109 FHLMC - Gold, Pool C18079,
6.00%, 11/1/28 4,769
11,335 FNMA, Pool 440700,
6.00%, 11/1/28 10,571
9,879 FNMA, Pool 452421,
6.00%, 12/1/28 9,212
------------
28,856
------------
Total U.S. Government Agencies
(cost $32,193) $ 30,720
------------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
FIXED INCOME FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
U.S. GOVERNMENT
OBLIGATIONS - 26.2%
U.S. TREASURY BONDS - 22.5%
$ 1,610 5.75%, 10/31/02 $ 1,610
4,940 7.50%, 2/15/05 5,280
10,000 6.625%, 5/15/07 10,311
20,715 6.125%, 8/15/07 20,737
32,130 7.125%, 2/15/23 34,853
------------
72,791
------------
12,000 U.S. TREASURY INFLATION INDEX NOTE - 3.7%
3.675% , 1/15/08 11,982
------------
Total U.S. Government Obligations
(cost $88,667) 84,773
------------
FLOATING RATE BANK NOTES - 2.0%
5,340 Lloyds Bank PLC, 5.63%, 12/15/99 4,575
2,120 National Westminster Bank,
5.63%, 11/30/99 1,761
------------
Total Floating Rate Bank Notes
(cost $6,510) 6,336
------------
SHORT-TERM INVESTMENTS - 4.0%
(cost $13,017)
13,017 Banco Popular, Puerto Rico,
Eurodollar Time Deposits,
5.688%, 10/1/99 13,017
------------
Total Investments - 98.9%
(cost $332,555) 319,491
Other Assets less Liabilities - 1.1% 3,678
------------
NET ASSETS - 100.0% $323,169
============
<F1> These private placement securities may require registration under the
Securities Act of 1933 or an exemption therefrom in order to effect sale in
the ordinary course of business. At September 30, 1999, the value of these
securities amounted to approximately $19,675,000 or 6.1% of net assets.
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
TAX-EXEMPT FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 96.5%
ALABAMA - 4.6%
$ 2,000 Courtland Industrial Development Board
Solid Waste Disposal Revenue Bond,
6.00%, 8/1/29 $ 1,898
1,500 Jefferson County Sewer Revenue Bond,
Series D (FGIC Insured), 5.75%, 2/1/22 1,483
Lauderdale & Florence County
Health Care Authority Revenue Bond,
Series A (MBIA Insured),
2,585 5.25%, 7/1/09 2,603
2,710 5.00%, 7/1/10 2,650
1,800 Mobile Industrial Development Board
PCR Refunding VRN, Alabama Power Co.
Project, 3.95%, 10/1/99 1,800
------------
10,434
------------
ALASKA - 0.4%
1,000 Anchorage G.O. Refunding Bond
(MBIA Insured), 5.00%, 7/1/12 970
------------
ARIZONA - 3.5%
1,000 Arizona Student Loan Acquisition
Authority Revenue Bond, Series A-1,
5.90%, 5/1/24 996
500 Arizona State Student Loan Acquisition
Authority Loan Revenue Refunding Bond,
Series B-1, 6.15%, 5/1/29 494
320 Cochise County University School District
No. 68 Sierra Vista G.O. Bond, Series B
(FGIC Insured), 9.00%, 7/1/03 369
1,500 Maricopa County Unified
School District No.11 Peoria Project
1991 G.O. Bond, 5.50%, 7/1/10 1,519
3,000 Maricopa County School District No.41
Gilbert G.O. Bond, 6.25%, 7/1/15 3,066
1,260 Maricopa County School District No.69
Paradise Valley G.O. Bond, Series B,
8.50%, 7/1/06 1,520
------------
7,964
------------
CALIFORNIA - 7.1%
4,315 California State Health Facility Financing
Authority Revenue Bond, Northern
California Presbyterian, 5.125%, 7/1/18 3,857
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CALIFORNIA - 7.1% (CONT'D.)
$ 1,150 California State Public Works Board Lease
Revenue Bond, Series A, 6.10%, 9/1/02 $ 1,215
4,000 California State Public Works Board Lease
Revenue Bond, Series E, Department of
Corrections State Prison, 5.50%, 6/1/15 4,037
3,500 California Statewide Communities
Development Authority Revenue
Refunding Bond, Series A-2, Irvine
Apartment Communities, 4.90%, 5/15/25 3,336
1,380 Los Angeles Convention & Exhibition
Center Authority Revenue COP,
9.00%, 12/1/20 1,720
1,380 Los Angeles Convention and Exhibition
Center Authority COP, Prerefunded,
9.00%, 12/1/10 1,720
230 Walnut Valley Unified School District
G.O. Bond, Series A (MBIA Insured),
Escrowed to Maturity, 6.00%, 8/1/13 247
------------
16,132
------------
COLORADO - 4.3%
3,360 Denver City & County Special Facilities
Airport Revenue Bond, Series A
(MBIA Insured), Rental Car Project,
6.00%, 1/1/14 3,434
3,000 Lower Colorado River Authority Revenue
Refunding Bond, Series A,
5.875%, 5/15/15 3,058
Metropolitan Football Stadium Sales
TRB (MBIA Insured)
3,000 Series B, 0.00%, 1/1/06 2,200
2,000 Series A, 0.00%, 1/1/12 1,022
------------
9,714
------------
CONNECTICUT - 1.1%
2,210 Connecticut State Special Tax Obligation
Revenue Bond, Series A, Transportation
Infrastructure, 7.125%, 6/1/10 2,544
------------
DISTRICT OF COLUMBIA - 2.8%
District of Columbia G.O.
Refunding Bond, Series B (FSA Insured),
2,000 5.50%, 6/1/10 2,039
4,300 5.50%, 6/1/11 4,355
------------
6,394
------------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
TAX-EXEMPT FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
96.5% (CONT'D.)
FLORIDA - 4.3%
$3,670 Broward County G.O. Bond,
10.00%, 7/1/14 $5,220
1,000 Florida Ports Authority Financing
Community Revenue Bond, State
Transportation Trust Fund, Intermodal
Project (FGIC Insured), 5.50%, 10/1/18 969
Florida State Board of Education Capital
Outlay G.O. Bond,
1,000 Series A, 5.50%, 1/1/05 1,041
480 9.125%, 6/1/14 643
1,750 Orlando City Utilities Commission
Water and Electric Revenue Refunding
Bond, Series D, 6.75%, 10/1/17 1,993
------------
9,866
------------
GEORGIA - 3.0%
5,300 Fulton County Water & Sewer Revenue
Bond (FGIC Insured), 4.75%, 1/1/28 4,428
2,300 Georgia State Municipal Electric
Authority Power Revenue Bond,
Series B (FGIC Insured),
6.375%, 1/1/16 2,509
------------
6,937
------------
IDAHO - 0.9%
2,000 Power County IDR Bond,
FMC Corp. Project,
6.45%, 8/1/32 2,002
------------
ILLINOIS - 8.5%
Chicago City G.O. Bond, Series B
(AMBAC Insured),
2,835 5.125%, 1/1/15 2,701
4,610 5.125%, 1/1/22 4,213
1,200 Chicago Emergency Telephone System
G.O. Bond, (FGIC Insured), 5.25%, 1/1/13 1,183
2,000 Chicago Midway Airport Revenue
Bond, Series A (MBIA Insured),
5.50%, 1/1/29 1,886
1,480 Chicago Water Revenue Refunding Bond
(FGIC Insured), 4.125%, 11/1/13 1,274
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
ILLINOIS - 8.5% (CONT'D.)
$1,000 Illinois Education Facility Authority
Revenue Bond, Series D (AMBAC Insured),
5.45%, 9/1/14 $ 968
1,000 Illinois State Health Facility Authority
Revenue Refunding Bond, Series A, West
Suburban Hospital, 5.75%, 7/1/15 941
Illinois State Development Financing
Authority Economic Development Revenue
Bond, Latin School of Chicago Project,
350 5.60%, 8/1/18 323
730 5.65%, 8/1/28 669
1,000 Illinois State Student Assistance
Commission Student Loan Revenue Bond,
Series QQ, 3.75%, 9/1/02 970
Illinois State G.O. Bond (FGIC Insured)
1,500 5.375%, 6/1/10 1,524
2,000 5.00%, 6/1/12 1,929
835 Kane County Forest Preserve District
G.O. Bond, 5.00%, 12/30/12 804
------------
19,385
------------
INDIANA - 5.3%
970 Hamilton County Public Building
Corporation First Mortgage G.O. Bond,
7.25%, 8/1/13 1,139
420 Indiana State Municipal Power Agency
Supply Systems Revenue Refunding Bond,
Series B (MBIA Insured),
6.00%, 1/1/12 445
1,290 Indiana State Office Building Capital
Complex Revenue Bond, Series B
(MBIA Insured), 7.40%, 7/1/15 1,542
3,305 Indiana State Transportation Authority
Airport Finance Lease Revenue Bond,
Series A, 5.50%, 11/1/12 3,311
Indianapolis City Industrial Gas Utility
Revenue Refunding Bond, Series B
(FGIC Insured),
400 5.00%, 6/1/06 406
910 4.00%, 6/1/08 850
970 3.50%, 6/1/18 713
1,500 Indianapolis Local Public Improvement
Bond Bank Revenue Bond, Series E,
5.75%, 2/1/29 1,451
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
INDIANA - 5.3% (CONT'D.)
$ 2,000 Marion County Convention and
Recreational Facility Authority Excise
TRB, Series A (AMBAC Insured),
7.00%, 6/1/21 $ 2,114
------------
11,971
------------
KANSAS - 1.6%
Burlington City Environmental
Improvement Revenue Refunding Bond,
Kansas City Power & Light Co. Project,
1,650 Series C, 4.50%, Mandatory Put 10/1/17 1,638
2,000 Series D, 4.35%, Mandatory Put 10/1/17 1,992
------------
3,630
------------
KENTUCKY - 0.9%
2,000 Jefferson County School District Finance
Corp. Revenue Refunding Bond,
Series A (FSA Insured), 5.00%, 1/1/08 2,005
------------
MASSACHUSETTS - 3.1%
1,500 Massachusetts State Construction G.O.
Bond, Series C, 5.25%, 8/1/11 1,506
Massachusetts State Development Finance
Agency Revenue Bond, Series P, Boston
University
1,500 5.375%, 5/15/39 1,330
2,000 6.00%, 5/15/59 1,959
500 Massachusetts State Health & Educational
Facility Authority Revenue Bond Series B,
Partners Healthcare System,
5.125%, 7/1/19 446
2,000 Massachusetts State Health & Educational
Facility Authority Revenue Bond, Series A,
Caritas Christi Obligation Group,
5.625%, 7/1/20 1,827
------------
7,068
------------
MICHIGAN - 0.7%
2,000 Michigan State Hospital Finance Authority
Revenue Refunding Bond (MBIA Insured),
4.50%, 10/15/21 1,623
------------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MONTANA - 0.1%
$ 190 University of Montana Higher Education
Revenue Bond, Series A (MBIA Insured),
4.50%, 11/15/15 $ 165
------------
NEBRASKA - 1.2%
3,000 American Public Energy Agency Gas Supply
Revenue Bond, Series C, Public Gas Agency
Project (AMBAC Insured),
4.30%, 3/1/11 2,714
------------
NEVADA - 1.1%
580 Nevada State G.O. Refunding
Bond, Project 20-23A, Escrowed to
Maturity, 7.20%, 7/16/06 585
2,000 Washoe County Airport Authority
Revenue Bond, Series A (MBIA Insured),
Airport Systems Improvement,
5.70%, 7/1/26 1,946
------------
2,531
------------
NEW JERSEY - 1.3%
1,000 New Jersey State Health Care Facilities
Finance Authority Revenue Bond,
Palisades Medical Center Obligation
Group (ACA Insured), 5.25%, 7/1/28 891
2,000 New Jersey State Turnpike Authority
Revenue Refunding Bond, Series A,
6.75%, 1/1/08 2,091
------------
2,982
------------
NEW YORK - 14.0%
1,900 City of New York G.O. VRN,
Subseries B-2 (Morgan Guaranty
Trust LOC), 3.95%, 10/1/99 1,900
1,000 Long Island Power Authority
Electric System Revenue Bond,
5.00%, 4/1/02 1,013
3,250 Monroe County Airport Authority
Revenue Refunding Bond, Greater
Rochester International Airport
(MBIA Insured), 5.375%, 1/1/07 3,341
New York City G.O. Refunding Bond
1,500 Series A, 5.00%, 8/1/05 1,514
1,000 Series D, 5.75%, 8/1/07 1,045
6,000 Series F, 5.25%, 9/15/11 6,004
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
TAX-EXEMPT FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
96.5% (CONT'D.)
NEW YORK - 14.0% (CONT'D.)
New York City Municipal Water
Financing Authority Water and Sewer
System Refunding Revenue Bond
$ 5,000 Series A (MBIA Insured), 5.50%, 6/15/23 $ 4,826
1,250 Series B, 5.25%, 6/15/29 1,134
New York State Dormitory Authority
Revenue Bond,Victory Memorial Hospital
(MBIA Insured)
1,000 5.25%, 8/1/15 954
500 5.375%, 8/1/25 471
1,250 New York State Dormitory Authority
Revenue Bond, Menorah Home (AMBAC
and FHA Insured), 5.00%, 8/1/18 1,126
1,590 New York State Dormitory Authority
Revenue Bond, Mental Health Services
Facility, 5.25%, 8/15/10 1,596
2,000 New York State Dormitory Authority
Revenue Bond, Presbyterian Hospital
(AMBAC and FHA Insured), 4.75%, 8/1/27 1,673
2,500 New York State Tollway Authority Highway
and Bridge Revenue Bond,
Series A (FGIC Insured), 5.125%, 4/1/11 2,486
1,000 New York State Urban Development Corp.
Revenue Refunding Bond (Colld.
By HUD236), 5.50%, 7/1/16 967
1,475 Triborough Bridge & Tunnel Authority
General Purpose Revenue Bond, Series SR,
5.00%, 1/1/07 1,491
------------
31,541
------------
NORTH CAROLINA - 2.7%
610 North Carolina State Eastern Municipal
Power Agency Revenue Refunding Bond
Series A, Escrowed to Maturity,
6.50%, 1/1/18 675
North Carolina State Eastern Municipal
Power Agency Revenue Refunding Bond,
3,850 Series B, 7.00%, 1/1/08 4,133
1,500 Series A, 5.75%, 1/1/26 1,432
------------
6,240
------------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
OHIO - 1.0%
$ 2,500 Scioto County Marine Terminal Revenue
Refunding Bond, Norfolk Southern Corp.
Project, 5.30%, 8/15/13 $ 2,334
------------
OKLAHOMA - 0.7%
1,380 McGee Creek Water Authority Revenue
Bond, Series 1992 (MBIA Insured),
6.00%, 1/1/13 1,466
------------
OREGON - 0.1%
230 Oregon State G.O. Bond, Series 66,
10.50%, 6/1/02 265
------------
PENNSYLVANIA - 1.1%
2,500 Philadelphia Water and Wastewater
Revenue Refunding Bond (AMBAC
Insured), 5.25%, 12/15/11 2,507
------------
SOUTH CAROLINA - 2.7%
2,000 Georgetown County Pollution Control
Facilities Revenue Refunding Bond,
Series A, International Paper Co. Project,
5.125%. 2/1/12 1,866
2,115 Piedmont County Municipal Power
Agency Electric Revenue Refunding Bond,
Series A, 6.55%, 1/1/16 2,115
2,000 South Carolina Transportation
Infrastructure Revenue Bond, Series A
(AMBAC Insured), 5.50%, 10/1/10 2,062
------------
6,043
------------
TENNESSEE - 1.4%
1,500 Chattanooga Health, Educational &
Housing Facilities Board Revenue
Refunding and Hospital Improvement
Bond, Siskin Hospital, 5.25%, 6/1/28 1,296
2,000 Tennessee State Energy Acquisition Corp.
Gas Revenue Bond, Series B (AMBAC
Insured), 4.50%, 9/1/08 1,919
------------
3,215
------------
TEXAS - 10.2%
1,500 Austin Hotel Occupancy Tax
Revenue Refunding Bond (AMBAC
Insured), 5.80%, 11/15/13 1,473
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
TEXAS - 10.2% (CONT'D.)
$ 2,000 Brazos River Authority PCR Refunding
Bond, Series A, Texas Utility Electric Co.,
3.70%, Mandatory Put 4/1/00 $ 1,997
1,000 Brownsville Naval District Revenue
Refunding Bond, Union Carbide Corp.
Project, 5.10%, 1/1/12 938
1,030 Colorado River Municipal Water
District Revenue Bond,
Prerefunded, 9.50%, 1/1/01 1,095
7,000 Dallas County Utility & Reclamation
District G.O. Refunding Bond, Series B
(AMBAC Insured), 5.875%, 2/15/29 6,955
1,300 Harris County Health Facilities
Development Corp. Revenue Bond,
Methodist Hospital, 3.95%, 12/1/26 1,300
1,810 Killeen School District G.O. Refunding
Bond (PSF Insured), 4.75%, 2/15/10 1,748
1,000 Lamar School District G.O. Bond
(PSF Insured), 6.00%, 2/15/13 1,042
1,000 Parker County Hospital District Revenue
Bond, Campbell Health System,
6.25%, 8/15/19 981
4,500 San Antonio Electric and Gas Revenue
Refunding Bond, Series A,
4.50%, 2/1/21 3,703
2,000 San Antonio Electric and Gas Revenue
Unrefunded Balance Bond, 5.00%, 2/1/12 1,941
------------
23,173
------------
UTAH - 1.9%
Utah State Intermountain Power Agency
Power Supply Revenue Refunding Bond
2,000 Series B, 6.00%, 7/1/06 2,231
2,500 Series D, 5.00%, 7/1/21 2,136
------------
4,367
------------
VIRGINIA - 1.1%
2,750 Charles City and County IDA
Solid Waste Disposal Facility Revenue
Bond, Waste Management, Inc.
Project, 4.875%, 2/1/09 2,501
------------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
$ 4,000 WASHINGTON - 2.8%
Washington State Convention & Trade
Center COP (MBIA Insured),
5.00%, 7/1/11 $ 3,869
1,500 Washington State Public Power Supply
Systems Revenue Refunding Bond,
Series A, Nuclear Project No.2,
6.50%, 7/1/03 1,578
1,000 Washington State Public Power Supply
Systems Revenue Refunding Bond,
Series B, Nuclear Project No.3,
5.70%, 7/1/10 1,018
------------
6,465
------------
WISCONSIN - 1.0%
2,200 Menomonee Falls BAN,
4.10%, 12/1/99 2,199
------------
Total Municipal Investments
(cost $222,840) 219,347
------------
NUMBER
OF SHARES
(000S)
- ----------
SHORT-TERM INVESTMENTS - 8.6%
14,782 AIM Tax Free Cash Reserve Fund 14,782
4,859 Provident Municipal Fund 4,859
------------
Total Short-Term Investments
(cost $19,641) 19,641
------------
Total Investments - 105.1%
(cost $242,481) 238,988
Liabilities less Other Assets - (5.1)% (11,530)
------------
NET ASSETS - 100.0% $227,458
============
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
CALIFORNIA TAX-EXEMPT FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 97.3%
CALIFORNIA - 89.9%
ABAG Finance Authority For Nonprofit
Corps. COP Channing House
$ 590 4.65%, 2/15/06 $ 564
780 4.90%, 2/15/09 738
2,000 Alameda County Water District
Revenue Refunding Bond (MBIA Insured), 1,753
4.75%, 6/1/20
2,600 Anaheim PFA Revenue Bond Electric System
District Facilities, 4.625%, 2,600
Mandatory Put 10/1/05
250 Anaheim PFA Tax Allocation Revenue
Bond, Series A (MBIA Insured),
Redevelopment Project, 5.25%, 2/1/18 241
1,000 Anaheim PFA Lease Revenue Bond,
Series C (FSA Insured), Public Improvement
Project, 6.00%, 9/1/09 1,091
1,000 California State Department of
Transportation Refunding COP, Series A
(MBIA Insured), 5.25%, 3/1/16 974
750 California State Department of Water
Restoration Central Valley Project Water
System Revenue Bond, Series O,
4.75%, 12/1/16 678
1,000 California State Educational Facilities
Authority Revenue Bond, Series A,
Pepperdine University, 5.00%, 11/1/29 882
California State G.O. Bond
150 6.60%, 2/1/10 170
1,475 5.25%, 10/1/10 1,513
2,000 California State Health Facilities Financing
Authority Revenue Bond, Northern
California Presbyterian, 5.125%, 7/1/18 1,788
California State Health Facilities Financing
Authority Revenue Bond, Sutter Health
1,000 Series A (FSA Insured), 5.00%, 8/15/37 867
1,000 Series A (MBIA Insured), 5.35%, 8/15/28 945
3,545 California State Public Works Board
Lease Revenue Bond, Series A, Trustee of
California State University, 5.25%, 10/1/14 3,469
1,000 California State Public Works Board
Lease Revenue Refunding Bond, Series B
(AMBAC Insured), Various Community
College Projects, 5.625%, 3/1/16 999
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CALIFORNIA - 89.9% (CONT'D.)
California State Public Works Board Lease
Revenue Refunding Bond, Series C,
Department of Corrections
$2,250 5.25%, 11/1/07 $2,331
3,275 5.25%, 11/1/08 3,375
1,000 California Statewide Communities
Development Authority Multifamily
Revenue Refunding Bond, Series E,
Archstone/Oakridge Housing,
5.30%, Mandatory Put 6/1/08 986
1,000 California Statewide Communities
Development Authority Revenue Refunding
Bond, Series A-2, Irvine Apartment
Communities,
4.90%, Mandatory Put 5/15/08 953
400 Dry Creek Joint Elementary School District
G.O. Bond, Series A (FSA Insured),
0.00%, 8/1/09 245
2,000 East Bay Municipal Utility District Water
System Revenue Bond, 5.25%, 6/1/16 1,959
150 Escondido Unified High School District
G.O. Bond (MBIA Insured),
5.60%, 11/1/09 156
515 Fillmore Unified School District
G.O. Bond, Series A (FGIC Insured),
0.00%, 7/1/10 298
200 Folsom School Facilities Projects
G.O. Bond, Series D (FGIC Insured),
5.70%, 8/1/13 207
295 Fontana Unified School District
G.O. Bond, Series D (FGIC Insured),
0.00%, 5/1/02 289
375 Foothill/Eastern Transportation Corridor
Agency Toll Road Senior Lien Revenue Bond,
Series A, 0.00%, 1/1/05 296
1,160 Fremont Unified School District Alameda
County G.O. Bond, Series A
(FGIC Insured), 0.00%, 8/1/13 550
1,000 Galt Schools Joint Powers Authority
Revenue Refunding Bond, Series A (MBIA
Insured), High School and Elementary
School Projects, 5.75%, 11/1/16 1,022
200 Imperial Irrigation District Refunding COP,
Electrical System Project (MBIA Insured),
5.20%, 11/1/09 206
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CALIFORNIA - 89.9% (CONT'D.)
$ 200 Lemoore Unified High School District G.O.
Bond (AMBAC Insured), 6.00%, 1/1/12 $ 216
2,000 Los Angeles G.O. Refunding Bond,
Series A (FGIC Insured), 5.25%, 9/1/13 2,012
550 Los Angeles Convention and Exhibition
Center Authority Lease Revenue Refunding
Bond, Series A (MBIA Insured),
6.125%, 8/15/11 604
1,000 Los Angeles County Metropolitan
Transportation Authority Sales TRB-Prop. C,
Series B (AMBAC Insured), 4.75%, 7/1/18 886
1,000 Los Angeles County Public Works Financing
Authority Revenue Bond, Series A, Regional
Park and Open Spaces District Project,
5.50%, 10/1/10 1,041
40 Los Angeles Harbor Department Revenue
Bond, Escrowed to Maturity,
7.60%, 10/1/18 49
450 Los Angeles Unified School District G.O.
Bond, Series A (FGIC Insured),
6.00%, 7/1/15 479
Metropolitan Water District Southern
State Waterworks Revenue Bond
300 Series C, 5.125%, 7/1/12 300
1,000 Series A, 5.00%, 7/1/26 896
1,500 Modesto COP, Water System
Improvement Project (AMBAC Insured),
Prerefunded, 6.25%, 10/1/01 1,595
1,930 Modesto Irrigation District Refunding COP,
Series B, Capital Improvements Projects,
5.30%, 7/1/22 1,788
1,420 Modesto Revenue Refunding COP, Water
Utility System Refining Project
(FGIC Insured), 5.125%, 10/1/17 1,347
720 Monrovia Unified School District G.O.
Bond, Series A (MBIA Insured),
0.00%, 8/1/10 415
250 M-S-R Public Power Agency Revenue
Refunding Bond, Series G, San Juan Project
(MBIA Insured), 5.25%, 7/1/11 253
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CALIFORNIA - 89.9% (CONT'D.)
$ 200 Oakland G.O. Bond, Measure I
(FGIC Insured), 5.60%, 12/15/14 $ 204
Palomar Pomerado Health Systems
Revenue Refunding Bond
(MBIA Insured)
1,250 5.375%, 11/1/10 1,283
1,250 5.375%, 11/1/11 1,272
250 Paramount Unified School District G.O.
Bond, Series A (FSA Insured),
5.125%, 9/1/19 234
1,500 Poway Unified School District Special Tax
Community Facilities District No. 1
Refunding Bond (MBIA Insured), 1,367
4.875%, 10/1/17
500 Redding Joint Powers Financing Authority
Electrical Systems Revenue Bond, Series A
(MBIA Insured), 5.25%, 6/1/15 491
300 Riverside Water Revenue Refunding Bond,
5.00%, 10/1/18 274
250 Riverside Sewer Revenue Refunding Bond
(FGIC Insured), 5.00%, 8/1/11 250
1,250 Sacramento County COP Refunding Bond,
Public Facilities Project
(AMBAC Insured), 4.75%, 10/1/17 1,105
1,000 Sacramento Municipal Utility District
Electric Revenue Refunding Bond,
Series L (AMBAC Insured),
5.20%, 7/1/16 969
1,530 Salinas Sanitation Sewer Systems Revenue
Bond (FGIC Insured), 5.00%, 8/1/20 1,397
2,500 San Bernardino County COP
Medical Center Financing Project, Series A
(MBIA Insured), Prerefunded, 5.50%, 8/1/05 2,680
1,000 San Diego County Regional Transportation
Sales TRB, Series A (AMBAC Insured),
6.00%, 4/1/06 1,084
200 San Diego County Water Authority
Revenue Refunding COP, Series A,
5.00%, 5/1/16 188
450 San Diego Public Facilities Financing
Authority Sewer Revenue Bond
Series B (FGIC Insured),
5.375%, 5/15/17 443
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
CALIFORNIA TAX-EXEMPT FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
97.3% (CONT'D.)
CALIFORNIA - 89.9% (CONT'D.)
$ 200 San Diego Unified School District COP,
Series A, Capital Projects,
5.00%, 7/1/00 $202
3,500 San Diego Unified School District G.O.
Bond, Series A (FGIC Insured),
0.00%, 7/1/05 2,700
1,000 San Francisco Bay Area Rapid Transit
District Sales Tax Revenue Refunding Bond,
5.25%, 7/1/17 969
2,150 San Jose Redevelopment Agency Tax
Allocation Bond, Merged Area
Redevelopment Project (AMBAC Insured),
4.75%, 8/1/29 1,823
500 Santa Clara County Financing Authority
Lease Revenue Multiple Facilities Project
Bond, Series A (AMBAC Insured),
4.40%, 5/15/10 475
35 Santa Rosa Wastewater Revenue Refunding
Bond, Series A (FGIC Insured),
5.25%, 9/1/16 34
200 Santa Rosa Wastewater Revenue Refunding
Bond, Series A (FGIC Insured), Subregional
Project, 4.75%, 9/1/16 181
South San Francisco Capital Improvement
Financing Authority Revenue Bond, Series A
(ACA Insured), Redevelopment Projects
485 3.85%, 9/1/02 478
1,085 4.20%, 9/1/06 1,043
1,370 4.25%, 9/1/07 1,305
1,000 Southern California Public Power Authority
Adelanto Power Project Revenue Bond-
Linked Floater (AMBAC Insured),
5.15%, 7/1/15 967
1,270 Washington Township California Health
Care District Revenue Bond, 5.00%, 7/1/12 1,192
------------
68,636
------------
PUERTO RICO - 7.4%
1,450 Puerto Rico Commonwealth G.O. Public
Improvement Bond,
5.25%, 7/1/10 1,464
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
PUERTO RICO - 7.4% (CONT'D.)
$3,000 Puerto Rico Commonwealth G.O.
Refunding Bond, Public Improvement,
0.00%, 7/1/04 $ 2,413
1,000 Puerto Rico Commonwealth Highway and
Transportation Authority Revenue Bond,
Series A (AMBAC Insured),
5.00%, 7/1/28 894
1,000 Puerto Rico Commonwealth Infrastructure
Financing Authority Special TRB, Series A
(AMBAC Insured), 5.00%, 7/1/21 910
------------
5,681
------------
Total Municipal Investments
(cost $76,965) 74,317
------------
NUMBER
OF SHARES
(000S)
- --------------
OTHER - 1.4%
2 Federated California Municipal Cash
Trust Money Market Fund 2
1,080 Provident Institutional California
Money Fund 1,080
------------
Total Other
(cost $1,082) 1,082
------------
Total Investments - 98.7%
(cost $78,047) 75,399
Other Assets less Liabilities - 1.3% 1,018
------------
NET ASSETS - 100.0% $76,417
============
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
INTERNATIONAL FIXED INCOME FUND
PRINCIPAL
AMOUNT/LOCAL CURRENCY VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
DEBT OBLIGATIONS - 94.4%
AUSTRALIAN DOLLAR - 2.2%
490 Commonwealth of Australia,
10.00%, 10/15/02 $ 358
------------
BRITISH POUND STERLING - 15.6%
350 BAA PLC, 7.875%, 2/10/07 602
375 Lloyds Bank PLC,
7.375%, 3/11/04 619
Treasury of Great Britain
325 7.50%, 12/7/06 579
300 8.00%, 6/7/21 689
------------
2,489
------------
CANADIAN DOLLAR - 4.0%
500 Government of Canada,
7.50%, 12/1/03 363
375 Province of Ontario,
7.25%, 9/27/05 270
------------
633
------------
DANISH KRONE - 4.0%
3,850 Kingdom of Denmark,
8.00%, 3/15/06 630
------------
EURO - 44.2%
450 Electric de France, 3.75%, 10/28/03 465
Federal Republic of Germany
562 7.50%, 11/11/04 674
350 4.00%, 7/4/09 342
601 6.25%, 1/4/24 671
Government of France,
343 5.50%, 4/25/07 377
600 4.00%, 10/25/09 579
Government of Spain
400 3.00%, 1/31/03 404
391 10.00%, 2/28/05 516
203 Kingdom of Belgium, 7.50%, 7/29/08 247
330 Republic of Austria,
8.00%, 1/30/02 195
380 Republic of Finland, 5.50%, 2/9/01 212
1,291 Republic of Italy, 8.50%, 4/1/04 1,586
Treasury of the Netherlands
227 8.50%, 3/15/01 258
454 5.75%, 2/15/07 503
------------
7,029
------------
PRINCIPAL
AMOUNT/LOCAL CURRENCY VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
JAPANESE YEN - 16.6%
55,000 Asian Development Bank,
5.00%, 2/5/03 $593
15,000 European Investment Bank,
5.875%, 11/26/99 142
100,000 FNMA, 2.00%, 12/20/99 943
80,000 International Bank for
Reconstruction and Development,
4.50%, 3/20/03 854
10,000 Japanese Development Bank,
6.50%, 9/20/01 106
------------
2,638
------------
SWEDISH KRONA - 1.3%
1,500 Kingdom of Sweden, 10.25%, 5/5/03 212
------------
UNITED STATES DOLLAR - 6.5%
950 U.S. Treasury Bond,
7.125%, 2/15/23 1,031
------------
Total Debt Obligations
(cost $15,084) 15,020
------------
SHORT-TERM INVESTMENT - 2.5%
UNITED STATES DOLLAR
(cost $398)
398 Banco Popular, Puerto Rico,
5.688%, 10/1/99 398
------------
Total Investments - 96.9%
(cost $15,482) 15,418
Other Assets less Liabilities - 3.1% 489
------------
NET ASSETS - 100.0% $15,907
============
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
HIGH YIELD MUNICIPAL FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 95.5%
ALASKA - 1.6%
$300 Alaska Industrial Development and
Export Authority Power Revenue
Bonds (AMT), Upper Lynn Canal
Regional Power, 5.875%, 1/1/32 $ 268
------------
ARIZONA - 6.3%
350 Apache County IDA PCR Bonds,
Series B, Tucson Electric Power Co.
Project, 5.875%, 3/1/33 319
300 Gilbert IDA Non-Profit Revenue Bonds,
Series A, Southwest Student Services,
5.85%, 2/1/19 281
500 Peoria Arizona IDA Revenue Refunding
Bonds, Series A, Sierra Winds Life
Care Community Project,
6.25%, 8/15/20 471
------------
1,071
------------
ARKANSAS - 3.4%
500 Little Rock Arkansas Hotel & Restaurant
Gross Receipts Tax Revenue Refunding
Bonds, 7.375%, 8/1/15 583
------------
CALIFORNIA - 5.8%
500 Sacramento City Finance Authority
Revenue Bonds, Series A, Convention
Center Hotel Project, 6.25%, 1/1/30 484
500 San Diego County COP Bonds,
The Burnham Institute, 5.70%, 9/1/11 503
------------
987
------------
COLORADO - 1.6%
250 Denver City & County Airport Revenue
Bonds, Series A, Prerefunded,
7.25%, 11/15/02 276
------------
CONNECTICUT - 2.7%
500 Connecticut State Development
Authority PCR Refunding Bonds, Series A,
Connecticut Light & Power Co.,
5.85%, 9/1/28 466
------------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 2.2%
$400 District of Columbia Revenue Bonds,
Methodist Home of the District of
Columbia Issue, 6.00%, 1/1/20 $375
------------
FLORIDA - 1.4%
250 Lee County Florida IDA Health Care
Facilities Revenue Bonds, Series A, Shell
Point Village Project, 5.75%, 11/15/15 238
------------
GEORGIA - 2.8%
500 Bibb County Development Authority
Multifamily Revenue Bonds, Series A,
Emerald Coast Housing II, Inc.,
7.25%, 11/1/28 471
------------
IDAHO - 2.9%
500 Power County Idaho Industrial
Development Corp. Solid Waste Disposal
Revenue Bonds (AMT), FMC Corp.
Project, 6.45%, 8/1/32 501
------------
ILLINOIS - 2.7%
500 Chicago O'Hare International Airport
Special Facility Revenue Bonds, Series A,
United Air Lines, Inc. Project,
5.35%, 9/1/16 460
------------
INDIANA - 2.7%
500 South Bend Indiana Economic
Development Revenue Bonds,
Series A, Southfield Village, Inc.,
6.25%, 11/15/29 467
------------
LOUISIANA - 4.3%
250 St. Charles Parish PCR Refunding Bonds,
Union Carbide Corp. Project,
5.10%, 1/1/12 234
500 West Feliciana Parish PCR Refunding
Bonds, Series A, Entergy Gulf States, Inc.
Project, 5.65%, 9/1/28 500
------------
734
------------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MASSACHUSETTS - 2.1%
$400 Massachusetts State Health &
Educational Facilities Authority Revenue
Bonds, Series A, Caritas Christi Obligated
Group, 5.625%, 7/1/20 $365
------------
MISSISIPPI - 2.7%
500 Mississippi Business Finance Corp. PCR
Refunding Bonds, Systems Energy
Resources, Inc. Project,
5.90%, 5/1/22 465
------------
MISSOURI - 2.8%
500 Howard Bend Levee District Special Tax
Bonds, 5.85%, 3/1/19 472
------------
NEVADA - 1.4%
260 Clark County PCR Refunding Bonds,
Series D, Nevada Power Co. Project,
5.45%, 10/1/23 234
------------
NEW JERSEY - 5.8%
500 New Jersey Economic Development
Authority Revenue Bonds, Series A,
Leisure Park Project (Gtd. by Host
Marriott Corp.), 5.875%, 12/1/27 463
500 New Jersey Economic Development
Authority Special Facilities Revenue
Bonds (AMT), Continental Airlines, Inc.
Project, 6.625%, 9/15/12 528
------------
991
------------
NEW MEXICO - 2.9%
500 New Mexico Educational Assistance
Foundation Student Loan Revenue
Bonds, Second Subordinate,
Series II-C (AMT), 6.00%, 12/1/08 492
------------
NEW YORK - 3.4%
400 New York G.O. Bonds, Series H,
5.25%, 3/15/18 372
200 New York State Urban Development
Corp. VRDN, P-Floats PT-210,
3.08%, 10/7/99 200
------------
572
------------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
NORTH CAROLINA - 3.0%
$500 North Carolina Eastern Municipal Power
Agency Power System Revenue Refunding
Bonds, Series B, 6.125%, 1/1/09 $508
------------
OHIO - 2.8%
500 Ohio State Water Development Authority
Solid Waste Disposal Revenue Bonds, Series A
(AMT), Bay Shore Power Co. Project,
5.875%, 9/1/20 472
------------
OKLAHOMA - 2.1%
400 Oklahoma Development Finance Authority
Revenue Refunding Bonds, Series A,
Hillcrest Healthcare Systems,
5.625%, 8/15/29 356
------------
OREGON - 2.8%
500 Klamath Falls Oregon Electric Revenue
Refunding Bonds, Senior Lien, Klamath
Cogeneration Project, 5.875%, 1/1/16 478
------------
PENNSYLVANIA - 14.2%
100 Beaver County IDA PCR Refunding
Bonds, Series A, Cleveland Electric
Illuminating Co., 7.75%, 7/15/25 111
500 Bucks County IDA First Mortgage
Health Care Facility Revenue
Bond, Chandler Hall Health Services
Project, 6.30%, 5/1/29 466
270 Delaware County Authority College
Revenue Bonds, Series B, Eastern College,
5.50%, 10/1/24 245
500 Montgomery County Higher Education
& Health Authority Revenue Bonds,
Temple Continuing Care Center,
6.625%, 7/1/19 482
400 Pennsylvania Economic Development
Finance Authority Exempt Facility
Revenue Bonds, Series A (AMT), National
Gypsum Co., Shippingport Project,
6.25%, 11/1/27 386
400 Philadelphia Hospitals and Higher
Education Facilities Revenue Bonds,
Chestnut Hill College, 6.00%, 10/1/29 374
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
HIGH YIELD MUNICIPAL FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
95.5% (CONT'D.)
PENNSYLVANIA - 14.2% (CONT'D.)
$400 Philadelphia Hospitals and Higher
Education Facilities Revenue Bonds,
Series A, Temple University Children's
Medical Center, 5.625%, 6/15/19 $361
------------
2,425
------------
TEXAS - 3.6%
150 Houston Airport Systems Revenue Bonds,
Series B (AMT), Special Facilities,
Continental Airlines, Inc.,
6.125%, 7/15/27 143
500 Matagorda County Navigation District
No. 1 Revenue Refunding
Bonds, Series B (AMT), Reliant Energy, Inc.
Project, 5.95%, 5/1/30 471
------------
614
------------
VERMONT - 2.8%
500 Vermont Educational & Health Buildings
Financing Agency Healthcare Facility
Revenue Bonds, Copley Manor Project,
6.15%, 4/1/19 470
------------
WISCONSIN - 2.7%
500 Wisconsin State Health & Educational
Facilities Authority Revenue Bonds,
Kenosha Hospital & Medical
Center Project, 5.625%, 5/15/29 449
------------
Total Municipal Investments
(cost $17,048) 16,260
------------
NUMBER
OF SHARES
(000S)
- ----------
SHORT-TERM INVESTMENT - 2.9%
(cost $493)
493 Federated Tax Free Trust Money Market
Fund No. 15 $493
------------
Total Investments - 98.4%
(cost $17,541) 16,753
Other Assets less Liabilities - 1.6% 270
------------
NET ASSETS - 100.0% $17,023
============
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
HIGH YIELD FIXED INCOME FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CORPORATE BONDS - 91.8%
AEROSPACE - 2.5%
$1,500 Dunlop Standard Aerospace Holdings PLC
Senior Notes, 11.875%, 5/15/09<F1> $1,507
1,000 Sequa Corp. Senior Notes,
9.00%, 8/1/09 980
------------
2,487
------------
AIRLINES - 2.0%
2,000 Aircraft Finance Trust
Subordinated Bond, Series 1999 - 1A,
Class D, 11.00%, 5/15/24<F1> 2,000
------------
AUTO PARTS & EQUIPMENT - 2.9%
1,000 American Axle & Manufacturing, Inc.,
Senior Subordianted Notes,
9.75%, 3/1/09 987
2,000 JL French Automotive Castings, Inc.
Senior Subordinated Notes,
11.50%, 6/1/09<F1> 1,975
------------
2,962
------------
CHEMICALS - 4.4%
1,500 Huntsman ICI Chemicals, LLC
Senior Subordinated Notes,
10.125%, 7/1/09<F1> 1,470
3,000 ZSC Specialty Chemical PLC
Senior Notes, 11.00%, 7/1/09<F1> 3,011
------------
4,481
------------
COMMERCIAL SERVICES - 6.2%
2,500 Avis Rent A Car, Inc.
Senior Subordinated Notes,
11.00%, 5/1/09<F1> 2,563
1,000 Building One Services Corp.
Senior Subordinated Notes,
10.50%, 5/1/09 922
1,500 NationsRent, Inc.
Senior Subordinated Notes,
10.375%, 12/15/08 1,481
2,000 Protection One, Inc.
Senior Subordinated Notes,
8.625%, 1/15/09<F1> 1,340
------------
6,306
------------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
COMPUTERS - 2.0%
$2,000 S C G Holding Corp.
Senior Subordinated Notes,
12.00%, 8/1/09<F1> $ 2,053
------------
DIVERSIFIED FINANCIAL SERVICES - 3.2%
2,000 Advanta Corp. Medium Term FRN,
5.818%, 7/23/01 1,830
1,500 Willis Corroon Corp.
Senior Subordinated Notes,
9.00%, 2/1/09<F1> 1,372
------------
3,202
------------
ELECTRIC 2.0%
2,000 AES Corp. Senior Notes,
9.50%, 6/1/09 1,997
------------
ELECTRONICS 1.9%
2,000 Knowles Electronics, Inc.
Senior Subordinated Notes,
13.125%, 10/15/09<F1> 1,959
------------
ENVIRONMENTAL CONTROL - 1.8%
2,000 Allied Waste N.A., Inc.
Senior Subordinated Notes,
10.00%, 8/1/09<F1> 1,830
------------
FOOD & BEVERAGE - 3.3%
1,500 Luigino's, Inc. Senior Subordinated
Notes, 10.00%, 2/1/06<F1> 1,402
2,000 Triarc Consumer Products Group LLC
Senior Subordinated Notes,
10.25%, 2/15/09<F1> 1,940
------------
3,342
------------
GAMING - 3.8%
1,000 Argosy Gaming Co.
Senior Subordinated Notes,
10.75%, 6/1/09<F1> 1,031
1,000 Hollywood Casino Shreveport,
13.00%, 8/1/06<F1> 1,030
1,000 Mohegan Tribal Gaming Authority
Senior Subordinated Notes,
8.75%, 1/1/09<F1> 981
1,000 Venetian Casino Resort LLC Notes,
12.25%, 11/15/04 800
------------
3,842
------------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
HIGH YIELD FIXED INCOME FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CORPORATE BONDS - 91.8% (CONT'D.)
HEALTH CARE - 4.4%
$2,500 Dynacare, Inc. Senior Notes,
10.75%, 1/15/06 $2,475
2,000 Triad Hospitals Holdings, Inc.
Senior Subordinated Notes,
11.00%, 5/15/09<F1> 1,980
------------
4,455
------------
HOME BUILDERS - 1.4%
1,500 Webb (Del E.) Corp.
Senior Subordinated Debentures,
10.25%, 2/15/10 1,380
------------
INTERNET - 1.5%
1,500 PSINet, Inc. Senior Notes,
11.00%, 8/1/09<F1> 1,481
------------
IRON/STEEL - 1.9%
2,000 Republic Technologies International Corp.
Senior Subordinated Notes,
13.75%, 7/15/09<F1> 1,900
------------
MISCELLANEOUS MANUFACTURING - 4.3%
1,500 Axia, Inc., Senior Subordinated Notes,
10.75%, 7/15/08 1,403
1,500 Gentek, Inc.
Senior Subordinated Notes,
11.00%, 8/1/09<F1> 1,530
1,500 Terex Corp., Senior Subordinated Notes,
Series D, 8.875%, 4/1/08 1,425
------------
4,358
------------
MEDIA, CABLE & RADIO - 6.4%
1,500 AMFM, Inc. Senior Subordinated Notes,
9.00%, 10/1/08 1,519
1,500 American Media Operations, Inc.
Senior Subordinated Notes,
10.25%, 5/1/09 1,450
1,000 Cadmus Communications Corp.
Senior Subordinated Notes,
9.75%, 6/1/09 996
2,000 Charter Communications Holdings LLC
Senior Notes,
8.625%, 4/1/09<F1> 1,890
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MEDIA, CABLE & RADIO - 6.4% (CONT'D.)
$1,250 Spectrasite Holdings, Inc.
Senior Discount Notes,
11.25%, 4/15/09<F1><F2> $ 638
------------
6,493
------------
OIL & GAS PRODUCERS AND SERVICES - 4.1%
1,500 Comstock Resources, Inc.
Senior Notes, 11.25%, 5/1/07<F1> 1,541
1,000 Key Energy Services, Inc.
Senior Subordinated Notes,
14.00%, 1/15/09 1,065
1,500 Plains Resources, Inc.
Senior Subordinated Notes,
10.25%, 3/15/06<F1> 1,515
------------
4,121
------------
PACKAGING - 1.5%
1,500 Consolidated Container Co., LLC
Senior Subordinated Notes,
10.125%, 7/15/09<F1> 1,508
------------
PHARMACEUTICALS - 3.0%
1,500 Express Scripts, Inc.
Senior Notes, 9.625%, 6/15/09 1,523
1,500 King Pharmaceutical, Inc.
Senior Subordinated Notes,
10.75%, 2/15/09<F1> 1,545
------------
3,068
------------
REAL ESTATE INVESTMENT TRUSTS - 4.3%
2,000 Crescent Real Estate Equities L.P. Notes,
7.00%, 9/15/02 1,883
2,550 Meditrust Co. Notes,
7.375%, 7/15/00 2,497
------------
4,380
------------
REMEDIATION SERVICES - 1.4%
1,500 IT Group, Inc.
Senior Subordinated Notes,
11.25%, 4/1/09<F1> 1,418
------------
STRUCTURED TRADE RECEIVABLE NOTE - 1.9%
2,000 Bunge Trade Ltd. Note,
9.25%, 5/1/02<F1> 1,936
------------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
TELECOMMUNICATIONS - 16.8%
$1,500 Allegiance Telecom, Inc.
Senior Notes,
12.875%, 5/15/08 $ 1,620
2,225 Focal Communications Corp.
Senior Discount Notes, Series 1998 B,
12.125%, 2/15/08<F2> 1,279
2,000 Global Crossing Holding Ltd.
Senior Notes, 9.625%, 5/15/08 2,060
1,500 Hyperion Telecommunications, Inc.
Senior Notes, Series 1997 B,
12.25%, 9/1/04 1,575
2,500 Level 3 Communications, Inc.
Senior Notes, 9.125%, 5/1/08 2,259
1,500 NEXTLINK Communications, Inc.
Senior Notes, 10.75%, 6/1/09 1,504
2,000 Rhythms NetConnections
Senior Notes,
12.75%, 4/15/09<F1> 1,800
1,500 United Pan-Europe Communications N.V.
Senior Notes, 10.875%, 8/1/09<F1> 1,515
1,000 Versatel Telecom International N.V.
Senior Notes, 11.875%, 7/15/09 946
1,500 Worldwide Fiber, Inc.
Senior Notes, 12.00%, 8/1/09<F1> 1,470
2,500 21st Century Telecom Group, Inc.
Senior Discount Notes,
2.25%, 2/15/08<F2> 1,050
------------
17,078
------------
TEXTILES - 1.0%
1,500 Pillowtex Corp.
Senior Subordinated Notes,
10.00%, 11/15/06 1,028
------------
TRANSPORTATION - 1.9%
1,000 RailWorks Corp.
Senior Subordinated Notes,
11.50%, 4/15/09<F1> 979
1,000 RailWorks Corp.
Senior Subordinated Notes,
11.50%, 4/15/09 979
------------
1,958
------------
Total Corporate Bonds
(cost $95,584) $ 93,023
------------
NUMBER OF
SHARES VALUE
(000S) (000S)
- -----------------------------------------------------------------------
WARRANTS - 0.0%
(cost $0)
1 Key Energy Services Inc., Exp. 1/15/09 20
------------
PRINCIPAL
AMOUNT
(000S)
- -----------
SHORT-TERM INVESTMENT - 7.6%
(cost $7,716)
$7,716 Banco Popular, Puerto Rico,
Eurodollar Time Deposits,
5.688%, 10/1/99 7,716
------------
Total Investments - 99.4%
(cost $103,300) 100,759
Other Assets less Liabilities - 0.6% 567
------------
NET ASSETS - 100.0% $101,326
============
<F1> These private placement securities may require registration under the
Securities Act of 1933 or an exemption therefrom in order to effect
sale in the ordinary course of business. At September 30, 1999, the
value of these securities amounted to approximately $52,110,000 or
51.4% of net assets.
<F2> Deferred interest rate notes. Currently zero coupon under the terms of
agreement.
See Notes to the Financial Statements.
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES SEPTEMBER 30, 1999 (UNAUDITED)
EQUITY FUNDS
<TABLE>
<CAPTION>
SMALL INT'L. INT'L.
INCOME STOCK GROWTH SELECT MID CAP CAP SMALL GROWTH SELECT TECH-
AMOUNTS IN THOUSANDS, EQUITY INDEX EQUITY EQUITY GROWTH INDEX CAP EQUITY EQUITY NOLOGY
EXCEPT PER SHARE DATA FUND FUND FUND FUND FUND FUND FUND FUND FUND FUND
- ----------------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value
(cost $212,475, $291,098,
$763,291, $195,489,
$210,848, $137,852,
$259,511, $433,873,
$142,816, and
$632,017 respectively) $227,853 $463,330 $1,079,382 $249,046 $241,275 $136,498 $290,015 $478,894 $161,224 $938,861
Cash and foreign
currencies 33 - 1 - 1 3 - 3 54 1
Receivable for
securities sold 3,604 - - - 6,623 1,589 1,715 10,960 2,011 8,525
Income receivable 955 691 1,076 94 14 172 181 1,004 240 119
Receivable for foreign
tax withheld - - - - - - - 645 164 -
Receivable from Adviser - 8 - -- 14 17 - 6 - 18
Prepaid and other assets 31 35 64 14 14 10 20 18 8 43
- ------------------------------------------------------------------------------------------------------------------------------------
Total Assets 232,476 464,064 1,080,523 249,154 247,941 138,289 291,931 491,530 163,701 947,567
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Line of Credit - - - - - 1,200 - - - -
Payable for securities
purchased - 3,938 - - 1,886 - - 4,872 2,907 16,998
Accrued investment
advisory fees 22 20 100 23 23 7 27 52 17 102
Accrued custody and
accounting fees 8 5 3 9 2 26 4 33 9 9
Accrued transfer agent fees 3 5 12 3 3 1 3 5 2 10
Accrued registration fees
and other liabilities 20 74 123 14 24 12 50 23 20 36
- ------------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 53 4,042 238 49 1,938 1,246 84 4,985 2,955 17,155
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets $232,423 $460,022 $1,080,285 $249,105 $246,003 $137,043 $291,847 $486,545 $160,746 $930,412
====================================================================================================================================
ANALYSIS OF NET ASSETS:
Capital stock $210,950 $285,825 $727,021 $180,698 $220,642 $138,029 $248,870 $415,473 $115,577 $595,836
Undistributed
(distributions in
excess of) net
investment income (loss) (8) 84 (64) (275) (333) 101 1,503 904 1,676 (2,432)
Undistributed net
realized gains (losses)
on investments, futures
and foreign currency
transactions 6,103 2,404 37,237 15,125 (4,733) 267 11,411 25,144 25,087 30,164
Net unrealized appreciation
(depreciation) on
investments and futures
contracts 15,378 171,709 316,091 53,557 30,427 (1,354) 30,063 45,021 18,408 306,844
Net unrealized gains
(losses) on translation
of assets and
liabilities denominated
in foreign currencies - - - - - - - 3 (2) -
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets $232,423 $460,022 $1,080,285 $249,105 $246,003 $137,043 $291,847 $486,545 $160,746 $930,412
====================================================================================================================================
SHARES OUTSTANDING ($.0001
PAR VALUE, UNLIMITED
AUTHORIZATION) 18,442 26,586 52,629 10,450 19,170 13,975 20,751 36,869 10,786 27,895
NET ASSET VALUE, REDEMPTION
AND OFFERING PRICE
PER SHARE $12.60 $17.30 $20.53 $23.84 $12.83 $9.81 $14.06 $13.20 $14.90 $33.35
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
STATEMENTS OF OPERATIONS SIX MONTHS ENDED SEPTEMBER 30, 1999 (UNAUDITED)
EQUITY FUNDS
<TABLE>
<CAPTION>
SMALL INT'L. INT'L.
INCOME STOCK GROWTH SELECT MID CAP CAP SMALL GROWTH SELECT TECH-
EQUITY INDEX EQUITY EQUITY GROWTH INDEX CAP EQUITY EQUITY NOLOGY
AMOUNTS IN THOUSANDS FUND FUND FUND FUND FUND FUND FUND FUND FUND FUND
- ----------------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $597 $155 $720 $150 $296 $- $335 $437 $148 $284
Dividend income 1,543 1,544 3,212 726 165 168 1,867 3,499 1,894 337
- ------------------------------------------------------------------------------------------------------------------------------------
Total Investment Income 2,140 1,699 3,932 876 461 168 2,202 3,936<F1> 2,042<F2> 621<F3>
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 691 696 3,652 1,382 794 65 1,793 1,691 842 3,050
Administration fees 104 174 548 173 119 15 224 212 105 381
Transfer agent fees 69 116 365 115 79 10 150 141 71 254
Custody and accounting fees 34 81 89 45 30 28 53 163 97 72
Registration fees 15 30 51 20 33 6 11 25 8 64
Professional fees 8 9 12 9 8 5 9 9 8 10
Trustees' fees and expenses 2 3 5 2 2 - 3 3 2 4
Other 3 3 12 4 2 1 7 5 - 10
- ------------------------------------------------------------------------------------------------------------------------------------
Total Expenses 926 1,112 4,734 1,750 1,067 130 2,250 2,249 1,133 3,845
Less voluntary waivers of:
Investment advisory fees (103) (232) (548) (403) (119) (12) (523) (282) (138) (508)
Administration fees (74) (129) (384) (118) (87) (1) (151) (154) (73) (265)
Less reimbursement of
expenses by Adviser (57) (113) (151) (78) (67) (50) (81) (51) (43) (19)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Expenses 692 638 3,651 1,151 794 67 1,495 1,762 879 3,053
- ------------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) 1,448 1,061 281 (275) (333) 101 707 2,174 1,163 (2,432)
- ------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED
GAINS (LOSSES):
Net realized gains
(losses) on:
Investments 5,590 921 38,094 13,769 (420) 267 (1,672) 25,983 10,189 30,553
Written options - - - - - - - - - 198
Futures contracts - 221 (1,070) - - - (249) - - -
Foreign currency
transactions - - - - - - - (70) (35) -
Net change in unrealized
appreciation
(depreciation) on
investments, options
and futures contracts (10,052) (17,828) (66,112) (9,030) 15,265 (3,142) 37,514 2,441 7,898 50,237
Net change in unrealized
gains (losses) on
translation of assets
and liabilities
denominated in foreign
currencies - - - - - - - 6 4 -
- ------------------------------------------------------------------------------------------------------------------------------------
Net Gains (Losses)
on Investments (4,462) (16,686) (29,088) 4,739 14,845 (2,875) 35,593 28,360 18,056 80,988
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS $(3,014) $(15,625) $(28,807) $4,464 $14,512 $(2,774) $36,300 $30,534 $19,219 $78,556
====================================================================================================================================
</TABLE>
<F1> Net of $350 in non-reclaimable foreign withholding taxes.
<F2> Net of $131 in non-reclaimable foreign withholding taxes.
<F3> Net of $4 in non-reclaimable foreign withholding taxes.
See Notes to the Financial Statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
EQUITY FUNDS
<TABLE>
<CAPTION>
INCOME EQUITY STOCK INDEX GROWTH EQUITY SELECT EQUITY
FUND FUND FUND FUND
-------------------- -------------------- --------------------- --------------------
SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR
SEPT. 30, ENDED SEPT. 30, ENDED SEPT. 30, ENDED SEPT. 30, ENDED
1999 MAR. 31, 1999 MAR. 31, 1999 MAR. 31, 1999 MAR. 31,
AMOUNTS IN THOUSANDS (UNAUDITED) 1999 (UNAUDITED) 1999 (UNAUDITED) 1999 (UNAUDITED) 1999
- ----------------------------- -------------------- -------------------- --------------------- --------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $1,448 $4,077 $1,061 $1,344 $281 $432 $(275) $(218)
Net realized gains (losses) on
investments, options, futures
contracts and foreign currency
transactions 5,590 1,489 1,142 1,369 37,024 50,510 13,769 1,356
Net change in unrealized
appreciation (depreciation) on
investments, options, futures
contracts and forward foreign
currency contracts (10,052) (4,690) (17,828) 19,161 (66,112) 72,564 (9,030) 38,865
Net change in unrealized gains
(losses) on translation of
assets and liabilities
denominated in foreign currencies - - - - - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in
Net Assets Resulting
from Operations (3,014) 876 (15,625) 21,874 (28,807) 123,506 4,464 40,003
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 9,708 25,431 59,891 105,375 73,692 117,092 71,331 70,108
Shares issued upon conversion 123,163 - 271,446 - 458,132 - - -
Shares from reinvestment of
dividends 210 5,955 289 1,692 29,945 29,629 - 6,988
Shares redeemed (14,600) (21,346) (24,057) (51,049) (60,452) (76,378) (25,220) (36,318)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets
Resulting from Capital Share
Transactions 118,481 10,040 307,569 56,018 501,317 70,343 46,111 40,778
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID:
From net investment income (1,458) (4,229) (984) (1,359) (345) (524) - (93)
From net realized gains - (5,832) - (1,378) (32,828) (32,048) - (8,694)
In excess of net investment income - (3) - - - (111) - -
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (1,458) (10,064) (984) (2,737) (33,173) (32,683) - (8,787)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN
NET ASSETS 114,009 852 290,960 75,155 439,337 161,166 50,575 71,994
NET ASSETS:
Beginning of period 118,414 117,562 169,062 93,907 640,948 479,782 198,530 126,536
- ------------------------------------------------------------------------------------------------------------------------------------
End of period $232,423 $118,414 $460,022 $169,062 $1,080,285 $640,948 $249,105 $198,530
====================================================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS
IN EXCESS OF) NET INVESTMENT
INCOME (LOSS) $(8) $2 $84 $7 $(64) $ - $(275) $ -
====================================================================================================================================
</TABLE>
<F1> Commenced investment operations after the close of business on March 31,
1998.
<F2> Commenced investment operations after the close of business on September
3, 1999.
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
<TABLE>
<CAPTION>
MID CAP SMALL CAP
GROWTH INDEX SMALL CAP
FUND FUND FUND
------------------- ------------ -------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR
SEPT. 30, ENDED SEPT. 30, SEPT. 30, ENDED
1999 MAR. 31, 1999<F2> 1999 MAR. 31,
(UNAUDITED) 1999<F1> (UNAUDITED) (UNAUDITED) 1999
- ----------------------------- ------------------- ------------ -------------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $(333) $(157) $101 $707 $799
Net realized gains (losses) on
investments, options, futures
contracts and foreign currency
transactions (420) (4,313) 267 (1,921) 16,817
Net change in unrealized
appreciation (depreciation) on
investments, options, futures
contracts and forward foreign
currency contracts 15,265 15,162 (3,142) 37,514 (103,773)
Net change in unrealized gains
(losses) on translation of
assets and liabilities
denominated in foreign currencies - - - - -
- ----------------------------------------------------------------------------------------------
Net Increase (Decrease) in
Net Assets Resulting
from Operations 14,512 10,692 (2,774) 36,300 (86,157)
- ----------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 158,320 69,910 11 41,222 102,033
Shares issued upon conversion - - 142,973 - -
Shares from reinvestment of
dividends - - - - 10,643
Shares redeemed (4,207) (3,224) (3,167) (50,109) (118,770)
- ----------------------------------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets
Resulting from Capital Share
Transactions 154,113 66,686 139,817 (8,887) (6,094)
- ----------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID:
From net investment income - - - - (226)
From net realized gains - - - - (11,668)
In excess of net investment income - - - - -
- ----------------------------------------------------------------------------------------------
Total Distributions Paid - - - - (11,894)
- ----------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN
NET ASSETS 168,625 77,378 137,043 27,413 (104,145)
NET ASSETS:
Beginning of period 77,378 - - 264,434 368,579
- ----------------------------------------------------------------------------------------------
End of period $246,003 $77,378 $137,043 $291,847 $264,434
==============================================================================================
UNDISTRIBUTED (DISTRIBUTIONS
IN EXCESS OF) NET INVESTMENT
INCOME (LOSS) $(333) $ - $101 $1,503 $796
==============================================================================================
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL INTERNATIONAL
GROWTH EQUITY SELECT EQUITY TECHNOLOGY
FUND FUND FUND
-------------------- -------------------- ---------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED YEAR
SEPT. 30, ENDED SEPT. 30, ENDED SEPT. 30, ENDED
1999 MAR. 31, 1999 MAR. 31, 1999 MAR. 31,
AMOUNTS IN THOUSANDS (UNAUDITED) 1999 (UNAUDITED) 1999 (UNAUDITED) 1999
- ----------------------------- -------------------- -------------------- ---------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $2,174 $1,017 $1,163 $449 $(2,432) $(1,535)
Net realized gains (losses) on
investments, options, futures
contracts and foreign currency
transactions 25,913 30,825 10,154 26,885 30,751 47,533
Net change in unrealized
appreciation (depreciation) on
investments, options, futures
contracts and forward foreign
currency contracts 2,441 (6,660) 7,898 (16,563) 50,237 71,473
Net change in unrealized gains
(losses) on translation of
assets and liabilities
denominated in foreign currencies 6 (596) 4 (39) - -
- ----------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in
Net Assets Resulting
from Operations 30,534 24,586 19,219 10,732 78,556 117,471
- ----------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 75,011 98,745 25,938 55,641 203,313 165,211
Shares issued upon conversion 191,041 - - - 359,270 -
Shares from reinvestment of
dividends 21,174 7,328 - 4,765 36,894 4,863
Shares redeemed (22,631) (83,624) (8,924) (58,089) (47,418) (42,504)
- ----------------------------------------------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets
Resulting from Capital Share
Transactions 264,595 22,449 17,014 2,317 552,059 127,570
- ----------------------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID:
From net investment income - - - - - -
From net realized gains (24,240) (7,589) - (6,110) (43,912) (5,721)
In excess of net investment income - (2,000) - (44) - -
- ----------------------------------------------------------------------------------------------------------
Total Distributions Paid (24,240) (9,589) - (6,154) (43,912) (5,721)
- ----------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN
NET ASSETS 270,889 37,446 36,233 6,895 586,703 239,320
NET ASSETS:
Beginning of period 215,656 178,210 124,513 117,618 343,709 104,389
- ----------------------------------------------------------------------------------------------------------
End of period $486,545 $215,656 $160,746 $124,513 $930,412 $343,709
==========================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS
IN EXCESS OF) NET INVESTMENT
INCOME (LOSS) $904 $(1,270) $1,676 $513 $(2,432) $ -
==========================================================================================================
</TABLE>
<F1> Commenced investment operations after the close of business on March 31,
1998.
<F2> Commenced investment operations after the close of business on September 3,
1999.
<PAGE>
FINANCIAL HIGHLIGHTS
EQUITY FUNDS
<TABLE>
<CAPTION>
INCOME EQUITY
FUND
------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR YEAR
SEPT. 30, ENDED ENDED ENDED ENDED ENDED
1999 MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
(UNAUDITED) 1999 1998 1997 1996 1995
- ------------------------------------------- ------------------------------------------------------------------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $12.73 $13.81 $11.81 $11.59 $9.95 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.13 0.46 0.45 0.44 0.34 0.29
Net realized and unrealized gains (losses)
on investments, and futures contracts (0.13) (0.41) 3.02 1.19 1.66 (0.08)
- -------------------------------------------------------------------------------------------------------------------
Total Income from
Investment Operations - 0.05 3.47 1.63 2.00 0.21
- -------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.13) (0.48) (0.44) (0.44) (0.36) (0.26)
From net realized gains - (0.65) (1.03) (0.97) - -
- -------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (0.13) (1.13) (1.47) (1.41) (0.36) (0.26)
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $12.60 $12.73 $13.81 $11.81 $11.59 $9.95
===================================================================================================================
TOTAL RETURN<F2> (0.04)% 0.67% 31.00% 14.42% 20.41% 2.21%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $232,423 $118,414 $117,562 $77,102 $55,919 $38,954
Ratio to average net assets of <F3>:
Expenses, net of waivers
and reimbursements 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Expenses, before waivers
and reimbursements 1.34% 1.35% 1.37% 1.42% 1.48% 1.55%
Net investment income, net of
waivers and reimbursements 2.10% 3.54% 3.53% 3.71% 3.17% 3.08%
Net investment income (loss), before
waivers and reimbursements 1.76% 3.19% 3.16% 3.29% 2.69% 2.53%
Portfolio Turnover Rate 40.35% 79.95% 81.24% 72.04% 67.32% 45.68%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> For the period October 7, 1996 (commencement of operations) through March
31, 1997.
<F2> Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions and a complete redemption
of the investment at net asset value at the end of the year. Total return
is not annualized for periods less than one year.
<F3> Annualized for periods less than a full year.
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
<TABLE>
<CAPTION>
STOCK INDEX
FUND
---------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR
SEPT. 30, ENDED ENDED ENDED
1999 MAR. 31, MAR. 31, MAR. 31,
(UNAUDITED) 1999 1998 1997<F1>
- ------------------------------------------- ---------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $17.34 $15.03 $10.74 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.06 0.16 0.15 0.08
Net realized and unrealized gains (losses)
on investments, and futures contracts (0.04) 2.49 4.80 0.74
- ---------------------------------------------------------------------------------------------
Total Income from
Investment Operations 0.02 2.65 4.95 0.82
- ---------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.06) (0.17) (0.15) (0.07)
From net realized gains - (0.17) (0.51) (0.01)
- ---------------------------------------------------------------------------------------------
Total Distributions Paid (0.06) (0.34) (0.66) (0.08))
- ---------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $17.30 $17.34 $15.03 $10.74
=============================================================================================
TOTAL RETURN<F2> 0.12% 17.78% 47.11% 8.21%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $460,022 $169,062 $93,907 $35,840
Ratio to average net assets of <F3>:
Expenses, net of waivers
and reimbursements 0.55% 0.55% 0.55% 0.55%
Expenses, before waivers
and reimbursements 0.96% 1.00% 1.18% 2.23%
Net investment income, net of
waivers and reimbursements 0.91% 1.10% 1.23% 1.92%
Net investment income (loss), before
waivers and reimbursements 0.50% 0.65% 0.60% 0.24%
Portfolio Turnover Rate 1.08% 2.46% 32.06% 64.94%
- ---------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GROWTH EQUITY
FUND
------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR YEAR
SEPT. 30, ENDED ENDED ENDED ENDED ENDED
1999 MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
(UNAUDITED) 1999 1998 1997 1996 1995
- ------------------------------------------- ------------------------------------------------------------------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $21.94 $18.62 $13.93 $13.15 $10.61 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.01 0.02 0.03 0.08 0.08 0.08
Net realized and unrealized gains (losses)
on investments, and futures contracts (0.31) 4.51 6.36 1.49 2.59 0.60
- -------------------------------------------------------------------------------------------------------------------
Total Income from
Investment Operations (0.30) 4.53 6.39 1.57 2.67 0.68
- -------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.01) (0.02) (0.03) (0.08) (0.08) (0.07)
From net realized gains (1.10) (1.19) (1.67) (0.71) (0.05) -
- -------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (1.11) (1.21) (1.70) (0.79) (0.13) (0.07)
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $20.53 $21.94 $18.62 $13.93 $13.15 $10.61
===================================================================================================================
TOTAL RETURN<F2> (1.45)% 24.72% 48.06% 11.72% 25.13% 6.90%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $1,080,285 $640,948 $479,782 $302,605 $224,571 $113,185
Ratio to average net assets of <F3>:
Expenses, net of waivers
and reimbursements 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Expenses, before waivers
and reimbursements 1.30% 1.30% 1.30% 1.33% 1.36% 1.40%
Net investment income, net of
waivers and reimbursements 0.08% 0.08% 0.18% 0.56% 0.70% 0.86%
Net investment income (loss), before
waivers and reimbursements (0.22)% (0.22)% (0.12)% 0.23% 0.34% 0.46%
Portfolio Turnover Rate 31.64% 49.67% 73.85% 67.34% 73.20% 82.90%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> For the period October 7, 1996 (commencement of operations) through March
31, 1997.
<F2> Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions and a complete redemption
of the investment at net asset value at the end of the year. Total return
is not annualized for periods less than one year.
<F3> Annualized for periods less than a full year.
See Notes to the Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
EQUITY FUNDS
<TABLE>
<CAPTION>
SELECT EQUITY
FUND
------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR YEAR
SEPT. 30, ENDED ENDED ENDED ENDED ENDED
1999 MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
(UNAUDITED) 1999 1998 1997 1996 1995<F1>
- ------------------------------------------- ------------------------------------------------------------------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $23.33 $19.16 $14.55 $13.12 $10.77 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.02) - 0.02 0.02 0.02 0.06
Net realized and unrealized gains (losses)
on investments, and futures contracts 0.53 5.40 6.81 2.05 2.73 0.75
- -------------------------------------------------------------------------------------------------------------------
Total Income (Loss) from
Investment Operations 0.51 5.40 6.83 2.07 2.75 0.81
- -------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income - (0.01) (0.02) (0.02) (0.03) (0.04)
From net realized gains - (1.22) (2.20) (0.62) (0.37) -
- -------------------------------------------------------------------------------------------------------------------
Total Distributions Paid - (1.23) (2.22) (0.64) (0.40) (0.04)
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $23.84 $23.33 $19.16 $14.55 $13.12 $10.77
===================================================================================================================
TOTAL RETURN <F4> 2.19% 28.79% 49.71% 15.64% 25.70% 8.18%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $249,105 $198,530 $126,536 $63,677 $33,842 $15,123
Ratio to average net assets of <F5>:
Expenses, net of waivers
and reimbursements 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Expenses, before waivers
and reimbursements 1.52% 1.54% 1.58% 1.67% 1.91% 2.61%
Net investment income (loss), net of
waivers and reimbursements (0.24)% (0.15)% 0.15% 0.21% 0.22% 0.82%
Net investment income (loss), before
waivers and reimbursements (0.76)% (0.69)% (0.43)% (0.46)% (0.69)% (0.79)%
Portfolio Turnover Rate 54.58% 87.73% 148.55% 72.68% 137.99% 48.88%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> For the period April 6, 1994 (commencement of operations) through March 31,
1995.
<F2> Commenced investment operations after the close of business on March 31,
1998.
<F3> Commenced investment operations after the close of business on September 3,
1999.
<F4> Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions and a complete redemption
of the investment at net asset value at the end of the year. Total return
is not annualized for periods less than one year.
<F5> Annualized for periods less than a full year.
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
<TABLE>
<CAPTION>
MID CAP SMALL CAP
GROWTH INDEX
FUND FUND
--------------------- ------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED
SEPT. 30, ENDED SEPT. 30,
1999 MAR. 31, 1999<F3>
(UNAUDITED) 1999<F2> (UNAUDITED)
- ------------------------------------------- --------------------- ------------
SELECTED PER SHARE DATA
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $11.72 $10.00 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.02) - 0.01
Net realized and unrealized gains (losses)
on investments, and futures contracts 1.13 1.72 (0.20)
- ------------------------------------------------------------------------------------
Total Income (Loss) from
Investment Operations 1.11 1.72 (0.19)
- ------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income - - -
From net realized gains - - -
- ------------------------------------------------------------------------------------
Total Distributions Paid - - -
- ------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $12.83 $11.72 $9.81
====================================================================================
TOTAL RETURN <F4> 9.47% 17.19% (1.90)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $246,003 $77,378 $137,043
Ratio to average net assets of <F5>:
Expenses, net of waivers
and reimbursements 1.00% 1.00% 0.65%
Expenses, before waivers
and reimbursements 1.34% 1.65% 1.34%
Net investment income (loss), net of
waivers and reimbursements (0.42)% (0.51)% 1.03%
Net investment income (loss), before
waivers and reimbursements (0.76)% (1.16)% 0.34%
Portfolio Turnover Rate 97.36% 173.39% 2.44%
- ------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP
FUND
------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR YEAR
SEPT. 30, ENDED ENDED ENDED ENDED ENDED
1999 MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
(UNAUDITED) 1999 1998 1997 1996 1995
- ------------------------------------------- ------------------------------------------------------------------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $12.32 $16.76 $12.31 $11.58 $9.98 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.04 0.04 0.03 0.07 0.05 0.11
Net realized and unrealized gains (losses)
on investments, and futures contracts 1.70 (3.93) 5.14 1.37 2.29 (0.05)
- -------------------------------------------------------------------------------------------------------------------
Total Income (Loss) from
Investment Operations 1.74 (3.89) 5.17 1.44 2.34 0.06
- -------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income - (0.01) (0.04) (0.06) (0.07) (0.08)
From net realized gains - (0.54) (0.68) (0.65) (0.67) -
- -------------------------------------------------------------------------------------------------------------------
Total Distributions Paid - (0.55) (0.72) (0.71) (0.74) (0.08)
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $14.06 $12.32 $16.76 $12.31 $11.58 $9.98
===================================================================================================================
TOTAL RETURN <F4> 14.12% (23.46)% 42.71% 12.48% 24.09% 0.57%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $291,847 $264,434 $368,579 $197,113 $155,238 $76,627
Ratio to average net assets of <F5>:
Expenses, net of waivers
and reimbursements 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Expenses, before waivers
and reimbursements 1.51% 1.52% 1.53% 1.54% 1.61% 1.76%
Net investment income (loss), net of
waivers and reimbursements 0.47% 0.25% 0.28% 0.54% 0.65% 1.36%
Net investment income (loss), before
waivers and reimbursements (0.04)% (0.27)% (0.25)% 0.00% 0.04% 0.60%
Portfolio Turnover Rate 9.90% 18.74% 18.59% 18.92% 46.59% 82.46%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> For the period April 6, 1994 (commencement of operations) through March 31,
1995.
<F2> Commenced investment operations after the close of business on March 31,
1998.
<F3> Commenced investment operations after the close of business on September 3,
1999.
<F4> Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions and a complete redemption
of the investment at net asset value at the end of the year. Total return
is not annualized for periods less than one year.
<F5> Annualized for periods less than a full year.
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
EQUITY FUNDS
<TABLE>
<CAPTION>
INTERNATIONAL
GROWTH EQUITY
FUND
------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR YEAR
SEPT. 30, ENDED ENDED ENDED ENDED ENDED
1999 MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
(UNAUDITED) 1999 1998 1997 1996 1995
- ------------------------------------------- ------------------------------------------------------------------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $12.57 $11.66 $10.05 $10.23 $9.61 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.01 0.13 0.09 0.09 0.17 0.04
Net realized and unrealized gains (losses)
on investments, options, futures contracts
and foreign currency transactions 1.81 1.36 1.98 0.18 0.65 (0.31)
- --------------------------------------------------------------------------------------------------------------------
Total Income (Loss) from
Investment Operations 1.82 1.49 2.07 0.27 0.82 (0.27)
- --------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income - - (0.07) (0.09) (0.11) (0.03)
From net realized gains (1.19) (0.46) (0.29) (0.23) - -
In excess of net investment income - (0.12) (0.10) - (0.09) -
In excess of accumulated net realized gains
on investment transactions - - - (0.13) - (0.09)
- --------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (1.19) (0.58) (0.46) (0.45) (0.20) (0.12)
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $13.20 $12.57 $11.66 $10.05 $10.23 $9.61
====================================================================================================================
TOTAL RETURN <F3> 14.45% 13.04% 21.34% 2.61% 8.61% (2.65)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $486,545 $215,656 $178,210 $165,892 $181,237 $114,673
Ratio to average net assets of <F4>:
Expenses, net of waivers
and reimbursements 1.25% 1.25% 1.25% 1.25% 1.25% 1.25%
Expenses, before waivers
and reimbursements 1.59% 1.62% 1.62% 1.63% 1.65% 1.71%
Net investment income (loss), net of
waivers and reimbursements 1.54% 0.52% 0.79% 0.78% 0.92% 0.47%
Net investment income (loss), before
waivers and reimbursements 1.20% 0.15% 0.42% 0.40% 0.52% 0.01%
Portfolio Turnover Rate 70.45% 177.89% 145.02% 190.94% 216.86% 158.31%
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> For the period April 5, 1994 (commencement of operations) through March 31,
1995.
<F2> Commenced investment operations on April 1, 1996.
<F3> Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions and a complete redemption
of the investment at net asset value at the end of the year. 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 Semiannual Report
<TABLE>
<CAPTION>
INTERNATIONAL
SELECT EQUITY
FUND
------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR YEAR
SEPT. 30, ENDED ENDED ENDED ENDED ENDED
1999 MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
(UNAUDITED) 1999 1998 1997 1996 1995<F1>
- ------------------------------------------- ------------------------------------------------------------------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $12.98 $12.52 $10.37 $10.73 $9.78 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.21 0.04 0.22 0.04 0.01 0.04
Net realized and unrealized gains (losses)
on investments, options, futures contracts
and foreign currency transactions 1.71 1.08 2.19 (0.25) 0.99 (0.23)
- --------------------------------------------------------------------------------------------------------------------
Total Income (Loss) from
Investment Operations 1.92 1.12 2.41 (0.21) 1.00 (0.19)
- --------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income - - (0.16) (0.03) (0.02) (0.03)
From net realized gains - (0.65) - - - -
In excess of net investment income - (0.01) (0.10) (0.04) (0.03) -
In excess of accumulated net realized gains
on investment transactions - - - (0.08) - -
- --------------------------------------------------------------------------------------------------------------------
Total Distributions Paid - (0.66) (0.26) (0.15) (0.05) (0.03)
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $14.90 $12.98 $12.52 $10.37 $10.73 $9.78
====================================================================================================================
TOTAL RETURN <F3> 14.79% 9.16% 23.74% (1.95)% 10.20% (1.95)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $160,746 $124,513 $117,618 $108,944 $102,719 $71,958
Ratio to average net assets of <F4>:
Expenses, net of waivers
and reimbursements 1.25% 1.25% 1.25% 1.25% 1.25% 1.25%
Expenses, before waivers
and reimbursements 1.62% 1.66% 1.64% 1.66% 1.71% 1.75%
Net investment income (loss), net of
waivers and reimbursements 1.66% 0.38% 0.29% 0.47% 0.12% 0.47%
Net investment income (loss), before
waivers and reimbursements 1.29% (0.03)% (0.10)% 0.06% (0.34)% (0.03)%
Portfolio Turnover Rate 67.81% 168.19% 98.22% 97.60% 176.71% 97.69%
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> For the period April 5, 1994 (commencement of operations) through March
31, 1995.
<F2> Commenced investment operations on April 1, 1996.
<F3> Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions and a complete
redemption of the investment at net asset value at the end of the year.
Total return is not annualized for periods less than one year.
<F4> Annualized for periods less than a full year.
<TABLE>
<CAPTION>
TECHNOLOGY
FUND
----------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR
SEPT. 30, ENDED ENDED ENDED
1999 MAR. 31, MAR. 31, MAR. 31,
(UNAUDITED) 1999 1998 1997<F2>
- ------------------------------------------- -----------------------------------------------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $29.99 $17.11 $11.95 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.09) - - -
Net realized and unrealized gains (losses)
on investments, options, futures contracts
and foreign currency transactions 6.35 13.55 6.06 2.10
- -----------------------------------------------------------------------------------------------
Total Income (Loss) from
Investment Operations 6.26 13.55 6.06 2.10
- -----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income - - - -
From net realized gains - - - -
In excess of net investment income - - - -
In excess of accumulated net realized gains
on investment transactions (2.90) (0.67) (0.90) (0.15)
- ------------------------------------------------------------------------------------------------
Total Distributions Paid - (0.66) (0.26) (0.15)
- ------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $33.35 $29.99 $17.11 $11.95
================================================================================================
TOTAL RETURN <F3> 21.10% 79.97% 52.62% 20.82%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $930,412 $343,709 $104,389 $43,754
Ratio to average net assets of <F4>:
Expenses, net of waivers
and reimbursements 1.20% 1.23% 1.25% 1.25%
Expenses, before waivers
and reimbursements 1.51% 1.53% 1.59% 2.02%
Net investment income (loss), net of
waivers and reimbursements (0.96)% (0.87)% (0.96)% (0.75)%
Net investment income (loss), before
waivers and reimbursements (1.27)% (1.17)% (1.30)% (1.52)%
Portfolio Turnover Rate 29.32% 61.01% 74.75% 67.89%
- ------------------------------------------------------------------------------------------------
</TABLE>
<F1> For the period April 5, 1994 (commencement of operations) through March 31,
1995.
<F2> Commenced investment operations on April 1, 1996.
<F3> Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions and a complete redemption
of the investment at net asset value at the end of the year. Total
return is not annualized for periods less than one year.
<F4> Annualized for periods less than a full year.
<PAGE>
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
INCOME EQUITY FUND
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
CONVERTIBLE PREFERRED
STOCKS - 38.0%
BANKS - 1.5%
128,000 National Australia Bank $ 3,504
------------
BIOTECHNOLOGY - 1.0%
65,000 Monsanto Co. 2,340
------------
COSMETICS/PERSONAL CARE - 2.1%
30,000 Estee Lauder Trust I TRACES 2,100
35,000 Estee Lauder Trust II TRACES 2,730
------------
4,830
------------
DIVERSIFIED FINANCIAL SERVICES - 4.3%
40,000 Salomon Smith Barney
Holdings, Inc. DECS/
Cincinnati Bell, Inc. 2,720
50,100 St. Paul Capital LLC MIPS 2,740
155,000 WBK Trust STRYPES 4,574
------------
10,034
------------
ELECTRIC - 1.9%
175,000 UtiliCorp United, Inc. 4,419
------------
FINANCIAL - 0.8%
35,000 Pogo Trust I 1,855
------------
FOREST PRODUCTS & PAPER - 3.7%
100,000 Georgia Pacific Group Corp. 4,425
80,000 International Paper Capital Trust 4,120
------------
8,545
------------
HOLDING COMPANIES - DIVERSIFIED - 2.0%
100,000 Seagram Co. Ltd. 4,644
------------
HOUSEWARES - 0.9%
54,000 Newell Financial Trust I<F1> 2,173
------------
INSURANCE - 1.5%
170,000 Lincoln National Corp. PRIDES 3,559
------------
MACHINERY-DIVERSIFIED - 2.0%
180,000 Ingersoll-Rand Co. PRIDES 4,725
------------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
MEDIA - 5.1%
70,000 MediaOne Group, Inc., Series D $ 7,346
160,000 Readers Digest Association, Inc. 4,520
------------
11,866
------------
OIL & GAS PRODUCERS - 3.1%
60,000 Apache Corp., Series C 2,400
90,000 Unocal Capital Trust<F1> 4,837
------------
7,237
------------
REAL ESTATE INVESTMENT TRUSTS - 1.7%
78,900 Prologis Trust, Series B 1,923
110,000 U.S. Restaurant Properties, Inc., Series A 1,925
------------
3,848
------------
RETAIL - 2.9%
62,000 Kmart Financing I 2,953
66,000 Wendy's Financing I, Series A TECONS 3,729
------------
6,682
------------
TELECOMMUNICAITONS - 2.1%
225,000 Amdocs Ltd. TRACES 4,865
------------
TRANSPORTATION - 1.4%
20,000 Canadian National Railway, Co. 1,034
50,000 Union Pacific Capital Trust 2,269
------------
3,303
------------
Total Convertible Preferred Stocks
(cost $82,125) 88,429
------------
PRINCIPAL
AMOUNT
(000S)
- -----------
CONVERTIBLE BONDS - 33.9%
ADVERTISING - 1.4%
$2,000 Omnicom Group, Inc., 2.25%, 1/6/13 3,140
------------
AUTO PARTS & EQUIPMENT - 2.3%
2,000 Magna International, Inc.,
4.875%, 2/15/05 1,895
4,000 Standard Motor Products, Inc.,
6.75%, 7/15/09 3,535
------------
5,430
------------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
COMMERCIAL SERVICES - 1.0%
$2,000 Checkpoint Systems, Inc.,
5.25%, 11/1/05<F1> $ 1,485
1,000 CUC International, Inc., 3.00%, 2/15/02 927
------------
2,412
------------
ELECTRONICS - 2.7%
500 Level One Communications, Inc.,
4.00%, 9/1/04 1,242
2,000 Thermo Electron Corp., 4.25%, 1/1/03 1,770
4,000 Thermo Instrument System, Inc.,
4.00%, 1/15/05 3,230
------------
6,242
------------
HEALTH CARE - 2.1%
4,000 ALZA Corp., 5.00%, 5/1/06 4,835
------------
INSURANCE - 2.2%
6,000 Loews Corp., 3.125%, 9/15/07 5,130
------------
LODGING - 1.2%
3,500 Hilton Hotels Corp., 5.00%, 5/15/06 2,835
------------
MEDIA - 2.4%
4,000 Clear Channel Communications, Inc.,
2.625%, 4/1/03 5,500
------------
MISCELLANEOUS MANUFACTURING - 1.3%
4,000 Mascotech, Inc., 4.50%, 12/15/03 3,015
------------
OIL & GAS PRODUCERS - 4.8%
6,000 Devon Energy Corp., 4.95%, 8/15/08 5,895
5,000 Diamond Offshore Drilling, Inc.,
3.75%, 2/15/07 5,325
------------
11,220
------------
PHARMACEUTICALS - 2.4%
5,000 Athena Neurosciences, Inc.,
4.75%, 11/15/04 5,594
------------
RETAIL - 5.7%
4,500 Home Depot (The), Inc., 3.25%, 10/1/01 13,314
------------
SEMICONDUCTORS - 2.3%
3,000 National Semiconductor Corp.,
6.50%, 10/1/02 2,970
3,000 STMicroelectronics N.V., 0.00%, 9/22/09 2,400
------------
5,370
------------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
SOFTWARE - 2.1%
$ 3,000 Softkey International, Inc.,
5.50%, 11/1/00<F1> $ 2,884
2,000 Siebel Systems, Inc., 5.50%, 9/15/06<F1> 1,953
------------
4,837
------------
Total Convertible Bonds
(cost $74,554) 78,874
------------
NUMBER
OF SHARES
- -----------
COMMON STOCKS - 20.8%
COMPUTERS - 2.4%
18,000 EMC Corp.* 1,286
22,000 Hewlett-Packard Co. 2,024
19,000 International Business Machines Corp. 2,306
------------
5,616
------------
DIVERSIFIED FINANCIAL SERVICES - 1.1%
58,000 Citigroup, Inc. 2,552
------------
ELECTRIC - 0.5%
32,000 Texas Utilities Co. 1,194
------------
ELECTRONICS - 2.1%
68,000 Solectron Corp.* 4,883
------------
HEALTH CARE - 0.5%
12,000 Johnson & Johnson 1,102
------------
INSURANCE - 0.5%
18,000 American General Corp. 1,137
------------
MISCELLANEOUS MANUFACTURING - 3.2%
12,000 Minnesota Mining & Manufacturing Co. 1,153
61,000 Tyco International Ltd. 6,298
------------
7,451
------------
OIL & GAS SERVICES - 1.5%
36,000 Baker Hughes, Inc. 1,044
40,000 Schlumberger Ltd. 2,493
------------
3,537
------------
PIPELINES - 3.8%
214,000 Enron Corp. 8,827
------------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
INCOME EQUITY FUND (continued)
NUMBER OF VALUE
SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 20.8% (CONT'D.)
RETAIL - 0.4%
37,000 TJX Cos., Inc. $ 1,038
------------
SEMICONDUCTORS - 1.0%
27,000 Motorola, Inc. 2,376
------------
SOFTWARE - 0.8%
43,000 Automatic Data Processing, Inc. 1,919
------------
TELEPHONE - 3.0%
157,793 AT&T Corp. 6,864
------------
Total Common Stocks
(cost $ 43,742) 48,496
------------
PRINCIPAL
AMOUNT
(000S)
- -----------
SHORT-TERM INVESTMENT - 5.3%
(cost $12,054)
$12,054 Banco Popular, Puerto Rico,
Eurodollar Time Deposits,
5.688%, 10/1/99 12,054
------------
Total Investments - 98.0% 227,853
(cost $212,475)
Other Assets less Liabilities - 2.0% 4,570
------------
NET ASSETS - 100.0% $232,423
============
<F1> Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At September 30,
1999, the value of these securities amounted to approximately $13,332,000
or 5.7% of net assets.
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
STOCK INDEX FUND
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 97.5%
ADVERTISING - 0.2%
11,900 Interpublic Group of Cos., Inc. $ 489
7,600 Omnicom Group, Inc. 602
------------
1,091
------------
AEROSPACE - 1.4%
23,400 AlliedSignal, Inc. 1,403
40,868 Boeing (The) Co. 1,742
8,500 General Dynamics Corp. 531
4,600 Goodrich (B.F.) Co. 133
16,746 Lockheed Martin Corp.* 547
2,900 Northrop Grumman Corp. 184
14,400 Raytheon Co. 715
20,500 United Technologies Corp. 1,216
------------
6,471
------------
AIRLINES - 0.2%
6,440 AMR Corp. 351
5,900 Delta Air Lines, Inc. 286
21,187 Southwest Airlines Co. 322
3,100 U.S. Airways Group, Inc.* 81
------------
1,040
------------
APPAREL - 0.2%
3,100 Fruit of the Loom, Inc., Class A* 10
2,600 Liz Claiborne, Inc. 80
11,900 NIKE, Inc., Class B 677
2,400 Reebok International Ltd.* 26
1,400 Russell Corp. 20
5,028 VF Corp. 156
------------
969
------------
AUTO MANUFACTURERS - 1.0%
51,400 Ford Motor Co. 2,580
27,400 General Motors Corp. 1,724
2,780 Navistar International Corp. 129
3,260 PACCAR, Inc. 166
------------
4,599
------------
AUTO PARTS & EQUIPMENT - 0.3%
3,100 Cooper Tire & Rubber Co. 55
6,972 Dana Corp. 259
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
AUTO PARTS & EQUIPMENT - 0.3%
23,810 Delphi Automotive Systems Corp. $ 382
6,658 Goodyear (The) Tire & Rubber Co. 320
5,200 TRW, Inc. 259
------------
1,275
------------
BANKS - 5.5%
7,350 AmSouth Bancorp. 172
49,746 Bank One Corp. 1,732
31,300 Bank of New York Co., Inc. 1,047
73,457 Bank of America Corp. 4,091
12,600 BankBoston Corp. 546
13,600 BB&T Corp. 440
35,352 Chase Manhattan Corp. 2,665
6,650 Comerica, Inc. 337
11,475 Fifth Third Bancorp 698
40,774 First Union Corp. 1,450
41,810 Firstar Corp. 1,071
9,757 Huntington Bancshares, Inc. 259
19,100 KeyCorp 493
21,900 Mellon Bank Corp. 739
7,500 Morgan (J.P.) & Co., Inc. 857
26,400 National City Corp. 705
12,900 PNC Bank Corp. 680
9,500 Regions Financial Corp. 285
4,500 Republic New York Corp. 276
7,100 SouthTrust Corp. 255
6,800 State Street Corp. 439
7,500 Summit Bancorp 243
13,700 SunTrust Banks, Inc. 901
11,350 Synovus Financial Corp. 212
31,142 U.S. Bancorp 940
6,100 Union Planters Corp. 249
8,600 Wachovia Corp. 676
70,060 Wells Fargo & Co. 2,776
------------
25,234
------------
BEVERAGES - 2.0%
19,944 Anheuser-Busch Cos., Inc. 1,397
2,900 Brown-Forman Corp., Class B 181
104,900 Coca-Cola (The) Co. 5,042
18,100 Coca-Cola Enterprises Inc. 408
1,600 Coors (Adolph) Co., Class B 87
62,200 PepsiCo, Inc. 1,881
------------
8,996
------------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
STOCK INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 97.5% (CONT'D.)
BIOTECHNOLOGY - 0.7%
21,700 Amgen, Inc.* $1,768
26,900 Monsanto Co. 960
10,200 Pioneer Hi-Bred International, Inc. 406
------------
3,134
------------
BUILDING MATERIALS - 0.2%
1,700 Armstrong World Industries, Inc. 76
18,800 Masco Corp. 583
2,300 Owens Corning 50
4,300 Vulcan Materials Co. 157
------------
866
------------
CHEMICALS - 1.2%
9,700 Air Products and Chemicals, Inc. 282
3,100 Ashland Inc. 104
9,350 Dow Chemical Co. 1,062
41,418 du Pont (E.I.) de Nemours & Co. 2,521
3,275 Eastman Chemical Co. 131
5,262 Engelhard Corp. 96
2,400 Great Lakes Chemical Corp. 91
4,400 Hercules, Inc. 126
6,800 Praxair, Inc. 313
9,243 Rohm & Haas Co. 334
7,100 Sherwin-Williams Co. 149
4,300 Sigma-Aldrich Corp. 136
5,600 Union Carbide Corp. 318
2,900 W.R. Grace & Co. 47
------------
5,710
------------
COMMERCIAL SERVICES - 0.5%
4,100 Block (H&R), Inc. 178
30,708 Cendant Corp.* 545
3,300 Deluxe Corp. 112
6,902 Dun & Bradstreet (The) Corp. 206
5,500 Ecolab, Inc. 188
6,100 Equifax, Inc. 172
11,941 McKesson HBOC, Inc. 346
10,500 Paychex, Inc. 358
11,300 Service Corp. International 119
------------
2,224
------------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMPUTERS - 8.7%
15,200 3Com Corp.* $ 437
6,800 Apple Computer, Inc.* 430
7,200 Cabletron Systems, Inc.* 113
6,200 Ceridian Corp.* 154
138,200 Cisco Systems, Inc.* 9,475
72,289 Compaq Computer Corp.* 1,658
6,800 Computer Sciences Corp.* 478
2,100 Data General Corp.* 44
108,000 Dell Computer Corp.* 4,516
21,000 Electronic Data Systems Corp. 1,112
43,100 EMC Corp.* 3,079
13,300 Gateway 2000, Inc.* 591
43,100 Hewlett-Packard Co. 3,965
76,900 International Business Machines Corp. 9,334
5,500 Lexmark International Group, Inc.* 443
3,100 Network Appliance, Inc.* 222
9,500 Seagate Technology, Inc.* 293
7,900 Silicon Graphics, Inc.* 86
32,900 Sun Microsystems, Inc.* 3,060
13,000 Unisys Corp.* 587
------------
40,077
------------
COSMETICS/PERSONAL CARE - 2.1%
2,400 Alberto-Culver Co., Class B 55
11,072 Avon Products, Inc. 275
24,800 Colgate-Palmolive Co. 1,135
46,088 Gillette Co. 1,564
4,500 International Flavors & Fragrances, Inc. 155
22,636 Kimberly-Clark Corp. 1,188
56,456 Procter & Gamble Co. 5,293
------------
9,665
------------
DISTRIBUTION/WHOLESALE - 0.2%
9,408 Costco Wholesale Corp. 677
7,550 Genuine Parts Co. 201
------------
878
------------
DIVERSIFIED FINANCIAL SERVICES - 5.1%
19,100 American Express Co. 2,571
30,986 Associates First Capital Corp. 1,115
4,930 Bear (The) Stearns Cos. Inc. 189
8,400 Capital One Financial Corp. 328
143,540 Citigroup Inc. 6,316
4,700 Countrywide Credit Industries, Inc. 152
43,600 Fannie Mae 2,733
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 5.1% (CONT'D.)
24,186 Fleet Financial Group Inc. $ 886
10,600 Franklin Resources, Inc. 326
29,500 Freddie Mac 1,534
20,345 Household International, Inc. 816
5,100 Lehman Brothers Holdings, Inc. 297
34,105 MBNA Corp. 778
15,700 Merrill Lynch & Co., Inc. 1,055
24,259 Morgan Stanley, Dean Witter & Co. 2,164
6,200 Paine Webber Group, Inc. 225
6,000 Providian Corp. 475
34,750 Schwab (Charles) Corp. 1,171
6,900 SLM Holding Corp. 297
------------
23,428
------------
ELECTRIC - 2.0%
8,200 AES Corp. 484
5,800 Ameren Corp. 219
8,200 American Electric Power Co. 280
6,700 Carolina Power & Light Co. 237
8,900 Central & South West Corp. 188
6,641 Cinergy Corp. 188
5,000 CMS Energy Corp. 170
9,500 Consolidated Edison, Inc. 394
6,400 Constellation Energy Group, Inc. 180
8,100 Dominion Resources, Inc. 366
6,100 DTE Energy Co. 220
15,552 Duke Power Co. 857
14,600 Edison International 355
10,400 Entergy Corp. 301
9,800 FirstEnergy Corp. 250
7,600 FPL Group, Inc. 383
4,100 Florida Progress Corp. 190
5,300 GPU, Inc. 173
4,800 New Century Energies, Inc. 160
7,900 Niagara Mohawk Power Corp.* 122
6,400 Northern States Power Co. 138
12,500 PacifiCorp 252
8,100 PECO Energy Co. 304
16,200 PG&E Corp. 419
6,700 PP&L Resources, Inc. 181
9,250 Public Service Enterprise Group, Inc. 357
12,622 Reliant Energy, Inc. 342
29,300 Southern Co. 754
11,884 Texas Utilities Co. 443
9,200 Unicom Corp. 340
------------
9,247
------------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
ELECTRICAL COMPONENTS &
EQUIPMENT - 0.3%
18,500 Emerson Electric Co. $ 1,169
------------
ELECTRONICS - 0.6%
1,900 EG&G, Inc. 76
5,400 Honeywell, Inc. 601
3,600 Johnson Controls, Inc. 239
1,900 Millipore Corp. 71
4,625 Parker-Hannifin Corp. 207
4,300 PE Corp - PE Biosystems Group 311
11,500 Solectron Corp.* 826
1,950 Tektronix, Inc. 65
6,600 Thermo Electron Corp.* 89
2,400 Thomas & Betts Corp. 122
------------
2,607
------------
ENGINEERING & CONSTRUCTION - 0.0%
3,200 Fluor Corp. 129
1,700 Foster Wheeler Corp. 20
------------
149
------------
ENTERTAINMENT - 0.1%
5,350 Harrah's Entertainment, Inc.* 148
8,500 Mirage Resorts, Inc.* 120
------------
268
------------
ENVIRONMENTAL CONTROL - 0.1%
7,800 Allied Waste Industries, Inc.* 91
26,273 Waste Management, Inc. 506
------------
597
------------
FOOD - 2.4%
17,845 Albertson's, Inc. 706
26,039 Archer-Daniels-Midland Co. 317
11,800 Bestfoods 572
18,500 Campbell Soup Co. 724
20,800 ConAgra, Inc. 469
6,500 General Mills, Inc. 527
1,600 Great Atlantic & Pacific Tea Co., Inc. 49
15,200 Heinz (H.J.) Co. 654
5,900 Hershey Foods Corp. 287
17,200 Kellogg Co. 644
35,300 Kroger Co. 779
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
STOCK INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 97.5% (CONT'D.)
13,900 Nabisco Group Holdings Corp. $ 209
5,700 Quaker Oats (The) Co. 353
13,700 Ralston-Ralston Purina Group 381
21,700 Safeway, Inc.* 826
38,400 Sara Lee Corp. 900
5,900 SUPERVALU Inc. 129
14,000 Sysco Corp. 491
24,271 Unilever N.V. - ADR 1,653
6,300 Winn-Dixie Stores, Inc. 187
4,900 Wrigley (Wm.) Jr. Co. 337
------------
11,194
------------
FOREST PRODUCTS & PAPER - 0.6%
2,333 Boise Cascade Co. 85
4,100 Champion International Corp. 211
9,300 Fort James Corp. 248
7,300 Georgia-Pacific Corp. 296
17,543 International Paper Co. 843
4,516 Louisiana-Pacific Corp. 70
4,300 Mead Corp. 148
1,200 Potlatch Corp. 49
2,350 Temple-Inland, Inc. 142
4,200 Westvaco Corp. 108
8,500 Weyerhaeuser Co. 490
4,700 Willamette Industries, Inc. 203
------------
2,893
------------
GAS - 0.1%
1,100 Eastern Enterprises 51
2,000 NICOR, Inc. 74
1,400 ONEOK, Inc. 42
1,500 Peoples Energy Corp. 53
10,212 Sempra Energy, Inc. 213
------------
433
------------
HAND/MACHINE TOOLS - 0.1%
3,700 Black & Decker Corp. 169
4,000 Grainger (W.W.), Inc. 192
1,500 Milacron Inc. 27
2,750 Snap-On, Inc. 89
3,800 Stanley Works (The) 96
------------
573
------------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
HEALTH CARE - 2.5%
2,800 Allergan, Inc. $ 308
2,200 Bard (C.R.), Inc. 104
2,400 Bausch & Lomb, Inc. 158
12,400 Baxter International, Inc. 747
10,600 Becton, Dickinson & Co. 297
4,700 Biomet, Inc. 124
17,600 Boston Scientific Corp.* 435
23,947 Columbia/HCA Healthcare Corp. 507
12,800 Guidant Corp. 686
17,300 HEALTHSOUTH Corp. 105
7,000 Humana, Inc.* 48
57,100 Johnson & Johnson 5,246
3,000 Mallinckrodt, Inc. 91
4,650 Manor Care, Inc. 80
49,900 Medtronic, Inc. 1,771
3,550 St. Jude Medical, Inc.* 112
13,100 Tenet Healthcare Corp.* 230
7,400 United Healthcare Corp. 360
2,800 Wellpoint Health Networks, Inc., Class A* 160
------------
11,569
------------
HOLDING COMPANIES-DIVERSIFIED - 0.2%
18,400 Seagram (The) Co. Ltd. 837
------------
HOME BUILDERS - 0.0%
2,500 Centex Corp. 74
1,500 Fleetwood Enterprises, Inc. 30
1,986 Kaufman & Broad Home Corp. 41
1,900 Pulte Corp. 41
------------
186
------------
HOME FURNISHINGS - 0.1%
3,800 Maytag Corp. 127
3,200 Whirlpool Corp. 209
------------
336
------------
HOUSEHOLD PRODUCTS/WARES - 0.2%
2,800 American Greetings Corp., Class A 72
4,800 Avery Dennison Corp. 253
10,000 Clorox (The) Co. 382
7,100 Fortune Brands, Inc. 229
1,400 Jostens, Inc. 27
2,400 Tupperware Corp. 49
------------
1,012
------------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
HOUSEWARES - 0.1%
11,908 Newell Rubbermaid, Inc. $ 340
------------
INSURANCE - 2.9%
6,023 Aetna, Inc. 297
11,300 AFLAC, Inc. 473
34,014 Allstate Corp. 848
10,610 American General Corp. 670
65,846 American International Group, Inc. 5,724
10,775 Aon Corp. 319
7,500 Chubb (The) Corp. 374
8,500 CIGNA Corp. 661
7,000 Cincinnati Financial Corp. 263
13,948 Conseco, Inc. 269
9,600 Hartford Financial Services
Group (The), Inc. 392
4,475 Jefferson-Pilot Corp. 283
8,500 Lincoln National Corp. 319
4,600 Loews Corp. 323
11,250 Marsh & McLennan Cos., Inc. 771
4,200 MBIA, Inc. 196
4,600 MGIC Investment Corp. 220
3,100 Progressive Corp. 253
5,700 SAFECO Corp. 160
9,680 St. Paul Cos., Inc. 266
5,700 Torchmark Corp. 147
10,161 UnumProvident Corp. 299
------------
13,527
------------
IRON/STEEL - 0.1%
8,065 Allegheny Teledyne, Inc. 136
5,500 Bethlehem Steel Corp.* 41
3,700 Nucor Corp. 176
3,700 USX -U.S. Steel Group 95
------------
448
------------
LEISURE TIME - 0.3%
3,800 Brunswick Corp. 95
26,096 Carnival Corp. 1,135
------------
1,230
------------
LODGING - 0.1%
10,800 Hilton Hotels Corp. 107
10,600 Marriott International, Inc. 346
------------
453
------------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
MACHINERY - CONSTRUCTION & MINING - 0.2%
15,100 Caterpillar, Inc. $ 828
------------
MACHINERY - DIVERSIFIED - 0.7%
16,000 Applied Materials, Inc.* 1,246
1,000 Briggs & Stratton Corp. 58
3,300 Case Corp. 164
1,800 Cummins Engine Co., Inc. 90
9,900 Deere & Co. 383
9,000 Dover Corp. 368
6,950 Ingersoll-Rand Co. 382
2,400 McDermott International, Inc. 49
300 NACCO Industries, Inc. 21
8,100 Rockwell International Corp. 425
------------
3,186
------------
MEDIA - 3.3%
30,000 CBS Corp.* 1,387
14,400 Clear Channel Communications, Inc.* 1,150
31,900 Comcast Corp., Class A 1,272
87,700 Disney (The Walt) Co. 2,269
5,500 Donnelley (R.R.) & Sons Co. 159
3,800 Dow Jones & Co., Inc. 203
11,900 Gannett Co., Inc. 823
3,000 King World Productions, Inc. 113
3,400 Knight-Ridder, Inc. 187
8,300 McGraw Hill Cos., Inc. 402
25,800 MediaOne Group Inc.* 1,762
2,200 Meredith Corp. 80
7,400 New York Times Co., Class A 278
55,000 Time Warner, Inc. 3,341
3,100 Times Mirror Co., Class A 204
10,000 Tribune Co. 497
29,604 Viacom, Inc., Class B* 1,251
------------
15,378
------------
METAL FABRICATE/HARDWARE - 0.0%
2,600 Timken (The) Co. 42
3,825 Worthington Industries, Inc. 65
------------
107
------------
METALS-DIVERSIFIED - 0.5%
9,525 Alcan Aluminum Ltd. 298
15,600 Aluminum Co. of America 968
1,700 ASARCO, Inc. 45
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
STOCK INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 97.5% (CONT'D.)
METALS-DIVERSIFIED - 0.5% (CONT'D.)
6,800 Freeport-McMoRan Copper &
Gold, Inc., Class B $ 106
8,100 Inco Ltd. 173
2,400 Phelps Dodge Corp. 132
13,635 Placer Dome, Inc. 203
2,700 Reynolds Metals Co. 163
------------
2,088
------------
MINING - 0.2%
16,600 Barrick Gold Corp. 361
3,800 Cyprus Amax Minerals Co. 75
11,100 Homestake Mining Co. 102
7,077 Newmont Mining Corp. 183
------------
721
------------
MISCELLANEOUS MANUFACTURING - 5.8%
4,000 Cooper Industries, Inc. 187
10,400 Corning, Inc. 713
2,918 Crane Co. 65
6,000 Danaher Corp. 316
13,500 Eastman Kodak Co. 1,018
3,100 Eaton Corp. 268
1,400 FMC Corp.* 68
139,400 General Electric Co. 16,528
10,700 Illinois Tool Works, Inc. 798
3,700 ITT Industries, Inc.* 118
17,100 Minnesota Mining & Manufacturing Co. 1,643
1,700 National Service Industries, Inc. 54
5,266 Pall Corp. 122
1,928 Polaroid Corp. 50
7,400 PPG Industries, Inc. 444
7,100 Tenneco, Inc. 121
6,400 Textron, Inc. 495
35,511 Tyco International Ltd. 3,667
------------
26,675
------------
OFFICE/BUSINESS EQUIPMENT - 0.4%
3,300 Harris Corp. 91
11,400 Pitney Bowes, Inc. 695
28,196 Xerox Corp. 1,182
------------
1,968
------------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
OIL & GAS PRODUCERS - 5.7%
3,800 Amerada Hess Corp. $ 233
5,400 Anadarko Petroleum Corp. 165
4,800 Apache Corp. 207
13,700 Atlantic Richfield Co. 1,214
7,482 Burlington Resources, Inc. 275
27,900 Chevron Corp. 2,476
9,000 Coastal Corp. 368
26,691 Conoco Inc. 731
103,200 Exxon Corp. 7,837
2,100 Helmerich & Payne, Inc. 53
3,649 Kerr-McGee Corp. 201
33,300 Mobil Corp. 3,355
14,800 Occidental Petroleum Corp. 342
10,700 Phillips Petroleum Co. 522
3,400 Rowan Cos., Inc.* 55
91,100 Royal Dutch Petroleum Co. ADR 5,381
3,800 Sunoco, Inc. 104
23,500 Texaco, Inc. 1,483
6,400 Tosco Corp. 162
10,544 Union Pacific Resources Group, Inc. 169
10,300 Unocal Corp. 382
13,000 USX - Marathon Group 380
------------
26,095
------------
OIL & GAS SERVICES - 0.6%
13,940 Baker Hughes, Inc. 404
18,800 Halliburton Co. 771
23,300 Schlumberger Ltd. 1,452
------------
2,627
------------
PACKAGING & CONTAINERS - 0.1%
1,300 Ball Corp. 57
2,200 Bemis Co. 75
5,100 Crown Cork & Seal Co., Inc. 124
6,500 Owens-Illinois, Inc.* 129
3,553 Sealed Air Corp.* 182
------------
567
------------
PHARMACEUTICALS - 7.2%
64,700 Abbott Laboratories 2,378
4,300 ALZA Corp.* 184
55,500 American Home Products Corp. 2,303
84,460 Bristol-Myers Squibb Co. 5,701
11,600 Cardinal Health, Inc. 632
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
PHARMACEUTICALS - 7.2% (CONT'D.)
46,496 Lilly (Eli) & Co. $ 2,976
99,700 Merck & Co., Inc. 6,462
164,700 Pfizer, Inc. 5,919
21,535 Pharmacia & Upjohn, Inc. 1,069
62,400 Schering-Plough Corp. 2,722
36,300 Warner-Lambert Co. 2,409
4,100 Watson Pharmaceuticals Inc.* 125
------------
32,880
------------
PIPELINES - 0.6%
3,450 Columbia Gas System, Inc. 191
4,100 Consolidated Natural Gas Co. 256
30,300 Enron Corp. 1,250
4,700 Sonat, Inc. 187
18,500 Williams (The) Cos., Inc. 693
------------
2,577
------------
RETAIL - 6.0%
6,200 Autozone, Inc.* 174
8,600 Best Buy Co., Inc.* 534
8,500 Circuit City Stores, Inc. 359
4,600 Consolidated Stores Corp.* 101
16,600 CVS Corp. 677
5,600 Darden Restaurants, Inc. 110
18,800 Dayton-Hudson Corp. 1,129
4,500 Dillard's, Inc., Class A 91
9,524 Dollar General Corp. 294
8,800 Federated Department Stores, Inc. 384
36,487 Gap (The), Inc. 1,168
3,011 Harcourt General, Inc. 125
63,070 Home Depot (The), Inc. 4,328
6,190 Ikon Office Solutions, Inc. 66
20,900 Kmart Corp.* 244
6,900 Kohl's Corp.* 456
9,000 Limited (The), Inc. 344
1,700 Longs Drug Stores, Inc. 51
16,200 Lowe's Cos., Inc. 790
14,148 May Department Stores Co. 516
57,600 McDonald's Corp. 2,477
6,000 Nordstrom, Inc. 162
15,600 Office Depot, Inc. 159
11,100 Penney (J.C.) & Co., Inc. 382
2,200 Pep Boys-Manny, Moe & Jack 33
10,800 Rite Aid Corp. 149
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
RETAIL - 6.0% (CONT'D.)
16,100 Sears, Roebuck & Co. $ 505
19,750 Staples Inc. 431
8,200 Tandy Corp. 424
13,500 TJX Cos., Inc. 379
10,375 Toys R Us, Inc.* 156
6,500 Tricon Global Restaurants, Inc.* 266
42,700 Walgreen Co. 1,084
189,100 Wal-Mart Stores, Inc. 8,994
5,200 Wendy's International, Inc. 137
------------
27,679
------------
SAVINGS & LOANS - 0.2%
2,400 Golden West Financial Corp. 236
25,080 Washington Mutual, Inc. 734
------------
970
------------
SEMICONDUCTORS - 3.2%
6,150 Advanced Micro Devices, Inc.* 106
140,600 Intel Corp. 10,448
3,800 KLA-Tencor Corp.* 247
6,200 LSI Logic Corp.* 319
10,600 Micron Technology, Inc. 706
7,100 National Semiconductor Corp.* 217
33,400 Texas Instruments, Inc. 2,747
------------
14,790
------------
SOFTWARE - 7.2%
2,600 Adobe Systems, Inc. 295
47,100 America On-Line, Inc.* 4,898
2,400 Autodesk, Inc. 53
26,300 Automatic Data Processing, Inc. 1,174
10,200 BMC Software Inc.* 730
22,830 Computer Associates International, Inc. 1,398
15,500 Compuware Corp.* 404
18,200 First Data Corp. 799
13,304 IMS Health, Inc. 303
216,900 Microsoft Corp.* 19,643
14,100 Novell, Inc.* 292
61,175 Oracle Corp.* 2,783
11,300 Parametric Technology Co.* 153
10,300 Peoplesoft, Inc.* 174
1,200 Shared Medical Systems Corp. 56
------------
33,155
------------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
STOCK INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 97.5% (CONT'D.)
TELECOMMUNICATION EQUIPMENT - 3.6%
5,700 ADC Telecommunications, Inc.* $ 239
3,462 Andrew Corp.* 60
7,400 General Instrument Corp.* 356
130,200 Lucent Technologies, Inc. 8,447
25,800 Motorola, Inc. 2,270
56,400 Nortel Networks Corp. 2,876
6,800 QUALCOMM, Inc.* 1,286
3,300 Scientific-Atlanta, Inc. 164
16,600 Tellabs, Inc.* 945
------------
16,643
------------
TELECOMMUNICATIONS - 0.7%
31,965 Global Crossing Ltd.* 847
14,100 Nextel Communications, Inc.* 956
18,700 Sprint Corp. 1,394
------------
3,197
------------
TELEPHONE - 7.5%
13,000 Alltel Corp. 915
46,700 Ameritech Corp. 3,138
135,835 AT&T Corp. 5,909
66,036 Bell Atlantic Corp. 4,445
80,100 BellSouth Corp. 3,605
5,850 Century Telephone Enterprises, Inc. 238
41,700 GTE Corp. 3,206
79,645 MCI WorldCom, Inc.* 5,724
83,604 SBC Communications, Inc. 4,269
36,900 Sprint Corp. 2,002
21,465 U.S. West Communications Group 1,225
------------
34,676
------------
TEXTILES - 0.0%
700 Springs Industries, Inc., Class A 24
------------
TOBACCO - 0.8%
101,600 Philip Morris Cos., Inc. 3,473
7,400 UST, Inc. 223
------------
3,696
------------
TOYS, GAMES & HOBBIES - 0.1%
8,212 Hasbro, Inc. 176
17,841 Mattel, Inc. 339
------------
515
------------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
TRANSPORTATION - 0.6%
19,728 Burlington Northern Santa Fe Corp. $ 543
9,224 CSX Corp. 391
12,540 FDX Corp.* 486
4,700 Kansas City Southern Industries, Inc. 218
13,800 Laidlaw, Inc. 93
16,200 Norfolk Southern Corp. 397
10,500 Union Pacific Corp. 505
------------
2,633
------------
TRUCKING & LEASING - 0.0%
2,900 Ryder System, Inc. 59
------------
Total Common Stocks
(cost $276,216) 448,459
------------
PRINCIPAL
AMOUNT
(000S)
- -----------
SHORT-TERM INVESTMENTS - 3.2%
$13,992 Banco Popular, Puerto Rico,
Eurodollar Time Deposits,
5.688%, 10/1/99 13,992
890 U.S. Treasury Bill,
4.68%, 1/6/00<F1> 879
------------
Total Short-Term Investments
(cost $14,882) 14,871
------------
Total Investments -100.7% 463,330
(cost $291,098)
Liabilities less Other Assets - (0.7)% (3,308)
------------
NET ASSETS - 100.0% $460,022
============
OPEN FUTURES CONTRACTS:
Notional Unrealized
Number of Amount Contract Contract Loss
Type Contracts (000s) Position Exp. (000s)
- ---------------------------------------------------------------------
S&P 500 34 $11,035 Long 12/99 $(523)
======
<F1> Security pledged as collateral to cover margin requirements for open
futures contracts.
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
GROWTH EQUITY FUND
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 98.1%
AEROSPACE - 1.5%
177,000 Boeing (The) Co. $ 7,545
150,000 United Technologies Corp. 8,897
------------
16,442
------------
ADVERTISING - 2.0%
281,000 Interpublic Group of Cos., Inc. 11,556
200,000 Lamar Advertising Co. 9,900
------------
21,456
------------
AIRLINES - 0.5%
321,000 Southwest Airlines Co. 4,875
------------
BANKS - 4.9%
170,200 Bank of America Corp. 9,478
44,000 Fuji Bank Corp. ADR 5,348
180,700 State Street Corp. 11,678
205,000 Southerntrust Corp. 7,354
289,500 Wells Fargo & Co. 11,471
133,000 Zions Bancorporation 7,332
------------
52,661
------------
BEVERAGES - 0.7%
154,700 Coca-Cola Co. 7,435
------------
BUILDING MATERIALS - 0.6%
215,000 Masco Corp. 6,665
------------
CHEMICALS - 1.1%
195,600 du Pont (E.I.) de Nemours & Co. 11,907
------------
COMMERCIAL SERVICES - 0.9%
288,825 Paychex, Inc. 9,856
------------
COMPUTERS & NETWORKING - 10.2%
300,250 Cisco Systems, Inc.* 20,586
282,000 Computer Sciences Corp.* 19,828
234,000 Dell Computer Corp. 9,784
328,600 EMC Corp.* 23,474
136,600 IBM Corp. 16,580
210,200 Sun Microsystems, Inc.* 19,549
------------
109,801
------------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COSMETIC/PERSONAL CARE - 1.1%
130,900 Procter & Gamble Co. $12,272
------------
LEISURE TIME - 0.7%
166,000 Royal Caribbean Cruises 7,470
------------
DIVERSIFIED FINANCIAL SERVICES - 5.8%
237,100 Capital One Financial Corp. 9,247
409,800 Concord EFS, Inc. 8,452
309,500 Citigroup, Inc. 13,619
151,600 Fannie Mae 9,503
160,100 Freddie Mac 8,325
21,433 Goldman Sachs Group, Inc 1,307
211,000 MBNA Corp. 4,813
85,000 Morgan Stanley, Dean Witter & Co. 7,581
------------
62,847
------------
ELECTRONICS - 1.2%
188,000 Solectron Corp.* 13,501
------------
FOOD - 0.8%
294,635 Keebler Foods Co.* 8,802
------------
HEALTH CARE - 3.8%
213,800 Guidant Corp. 11,465
206,500 Johnson & Johnson 18,972
294,200 Medtronic, Inc. 10,444
------------
40,881
------------
INSURANCE - 1.5%
181,124 American International Group, Inc. 15,746
------------
MEDIA - 1.4%
198,600 Disney (The Walt) Co. 5,139
167,100 Time Warner, Inc. 10,151
------------
15,290
------------
MISCELLANEOUS MANUFACTURING - 6.6%
81,000 Corning, Inc. 5,554
369,700 General Electric Co. 43,833
216,300 Tyco International Ltd. 22,333
------------
71,720
------------
OIL & GAS PRODUCERS - 7.3%
293,000 Burlington Resources, Inc 10,768
------------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
GROWTH EQUITY FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 98.1% (CONT'D.)
OIL & GAS PRODUCERS - 7.3% (CONT'D.)
116,000 Chevron Corp. $ 10,295
273,460 EOG Resources, Inc. 5,811
407,200 Exxon Corp. 30,922
356,500 Royal Dutch Petroleum Co. 21,056
------------
78,852
------------
OIL & GAS SERVICES - 2.1%
288,200 Halliburton Co. 11,816
181,600 Schlumberger Ltd. 11,316
------------
23,132
------------
FOREST PRODUCTS & PAPER - 0.7%
151,000 International Paper 7,257
------------
PHARMACEUTICALS - 6.1%
313,400 Bristol-Myers Squibb Co. 21,155
153,100 Cardinal Health, Inc. 8,344
121,600 Lilly (Eli) & Co. 7,782
164,000 Merck & Co., Inc. 10,629
244,800 Pfizer, Inc. 8,798
203,000 Schering-Plough Corp. 8,856
------------
65,564
------------
PIPELINES - 0.8%
200,400 Enron Corp. 8,267
------------
RETAIL - 12.2%
622,000 Blockbuster, Inc. 7,931
141,500 Dollar General Corp. 4,369
288,787 Gap (The), Inc. 9,241
521,800 Home Depot (The), Inc. 35,809
305,000 Kohl's Corp.* 20,168
420,000 Staples, Inc.* 9,161
92,000 Tandy Corp. 4,755
698,800 Walgreen Co. 17,732
482,400 Wal-Mart Stores, Inc. 22,944
------------
132,110
------------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
SEMICONDUCTORS - 7.8%
183,000 Applied Materials, Inc. $14,251
363,000 Intel Corp. 26,976
90,000 Motorola, Inc. 7,920
320,000 National Semiconductor Corp. 9,760
153,800 Texas Instruments, Inc. 12,650
81,000 Vitesse Semiconductor, Corp 6,915
95,500 Xilinx, Inc. 6,258
------------
84,730
------------
SOFTWARE - 4.7%
352,000 Fiserv, Inc 11,440
431,000 Microsoft Corp.* 39,032
------------
50,472
------------
TELECOMMUNICATION EQUIPMENT - 3.6%
195,100 Linear Technology 11,468
257,200 Lucent Technologies, Inc. 16,686
179,900 Tellabs, Inc.* 10,243
------------
38,397
------------
TELEPHONE - 6.0%
270,100 Ameritech Corp. 18,147
340,500 AT&T Corp. 14,812
172,000 BellSouth Corp. 7,740
190,200 MCI WorldCom, Inc.* 13,671
198,000 SBC Communications, Inc. 10,110
------------
64,480
------------
TEXTILES - 0.4%
80,000 Cintas Corp. 4,625
------------
TOBACCO -1.1%
347,500 Philip Morris Cos., Inc. 11,880
------------
Total Common Stocks
(cost $743,302) $1,059,393
------------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
SHORT-TERM INVESTMENT - 1.8%
(cost $19,989)
$19,989 Banco Popular, Puerto Rico
Eurodollar Time Deposits,
5.688%, 10/1/99 $ 19,989
------------
Total Investments - 99.9%
(cost $763,291) 1,079,382
Other Assets less Liabilities - 0.1% 903
------------
NET ASSETS - 100.0% $1,080,285
============
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
SELECT EQUITY FUND
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 99.1%
AEROSPACE - 2.2%
40,000 AlliedSignal, Inc. $ 2,398
52,000 United Technologies Corp. 3,084
------------
5,482
------------
AIRLINES - 0.7%
121,500 Southwest Airlines Co. 1,845
------------
AUTO MANUFACTURERS - 1.0%
31,000 Honda Motor Co., Ltd. ADR 2,536
------------
BANKS - 3.3%
75,000 Bank of Tokyo - Mitsubishi Ltd. ADR 1,148
46,500 Chase Manhattan Corp. 3,505
90,000 Wells Fargo & Co. 3,566
------------
8,219
------------
BIOTECHNOLOGY - 1.2%
37,000 Biogen, Inc.* 2,916
------------
CHEMICALS - 0.9%
18,383 du Pont (E.I.) de Nemours & Co. 1,119
24,000 Praxair, Inc. 1,104
------------
2,223
------------
COMMERCIAL SERVICES - 0.2%
42,000 Modis Professional Services, Inc.* 557
------------
COMPUTERS - 10.3%
6,200 Brocade Communications Systems, Inc.* 1,302
68,000 Cisco Systems, Inc.* 4,662
68,000 EMC Corp.* 4,858
39,000 Hewlett-Packard Co. 3,588
38,000 International Business Machines Corp. 4,612
57,000 Sun Microsystems, Inc.* 5,301
14,000 VeriSign, Inc.* 1,491
------------
25,814
------------
COSMETICS/PERSONAL CARE - 1.1%
30,000 Procter & Gamble Co. 2,813
------------
DIVERSIFIED FINANCIAL SERVICES - 7.7%
37,500 American Express Co. 5,048
97,750 Citigroup, Inc. 4,301
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 7.7% (CONT'D.)
60,000 Freddie Mac $ 3,120
33,000 Hambrecht & Quist, Inc.* 1,615
13,000 Morgan Stanley, Dean Witter & Co. 1,159
25,000 Providian Financial Corp. 1,980
60,000 Schwab (Charles) Corp. 2,021
------------
19,244
------------
ELECTRONICS - 4.0%
45,000 Johnson Controls, Inc. 2,984
22,000 Linear Technology Corp. 1,293
21,000 SDL, Inc.* 1,603
57,000 Solectron Corp.* 4,093
------------
9,973
------------
ENTERTAINMENT - 0.5%
15,000 Univision Communications, Inc.* 1,221
------------
FOREST PRODUCTS & PAPER - 0.6%
25,000 Weyerhaeuser Co. 1,441
------------
HEALTH CARE - 6.5%
52,000 Guidant Corp.* 2,790
29,500 Johnson & Johnson 2,710
25,000 MedImmune, Inc.* 2,491
88,000 Medtronic, Inc. 3,124
28,000 MiniMed, Inc.* 2,751
30,000 VISX, Inc.* 2,373
------------
16,239
------------
INSURANCE - 2.6%
67,000 AFLAC, Inc. 2,806
40,937 American International Group, Inc. 3,559
------------
6,365
------------
MEDIA - 3.5%
48,000 MediaOne Group, Inc.* 3,279
45,000 Time Warner, Inc. 2,734
54,000 Tribune Co. 2,687
------------
8,700
------------
MISCELLANEOUS MANUFACTURING - 5.9%
76,000 General Electric Co. 9,011
54,500 Tyco International Ltd. 5,627
------------
14,638
------------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
OIL & GAS PRODUCERS - 6.9%
30,000 Apache Corp. $ 1,296
21,500 Atlantic Richfield Co. 1,905
11,000 BP Amoco PLC ADR 1,219
93,000 Burlington Resources, Inc. 3,418
38,695 Conoco Inc., Class B 1,059
68,000 ENSCO International, Inc. 1,228
100,090 EOG Resources, Inc. 2,127
23,000 Exxon Corp. 1,747
31,000 Mobil Corp. 3,123
------------
17,122
------------
OIL & GAS SERVICES - 1.4%
35,000 Schlumberger Ltd. 2,181
40,000 Weatherford International, Inc.* 1,280
------------
3,461
------------
PHARMACEUTICALS - 2.9%
110,000 Elan Corp. PLC ADR* 3,692
18,000 Merck & Co., Inc. 1,167
66,000 Pfizer, Inc. 2,372
------------
7,231
------------
PIPELINES - 1.6%
96,000 Enron Corp. 3,960
------------
RETAIL - 6.5%
25,000 E-Tek Dynamics, Inc.* 1,356
40,000 Home Depot (The), Inc. 2,745
43,000 Kohl's Corp.* 2,843
40,000 Tandy Corp. 2,068
108,000 Wal-Mart Stores, Inc. 5,137
80,000 Walgreen Co. 2,030
------------
16,179
------------
SEMICONDUCTORS - 7.0%
20,000 Broadcom Corp.* 2,180
25,000 Conexant Systems, Inc.* 1,816
70,000 Intel Corp. 5,202
62,000 Texas Instruments, Inc. 5,099
48,000 Xilinx, Inc.* 3,145
------------
17,442
------------
SOFTWARE - 8.0%
8,000 Adobe Systems, Inc. 908
12,500 BroadVision, Inc.* 1,663
8,000 DoubleClick, Inc.* 953
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
SOFTWARE - 8.0% (CONT'D.)
25,000 Electronic Arts, Inc.* $ 1,809
101,000 Microsoft Corp.* 9,147
19,342 NetZero, Inc.* 503
50,000 Oracle Corp.* 2,275
16,000 RealNetworks, Inc.* 1,673
15,000 Siebel Systems, Inc.* 999
------------
19,930
------------
TELECOMMUNICATION EQUIPMENT - 6.0%
27,000 Comverse Technology, Inc.* 2,546
52,000 General Instrument Corp.* 2,504
23,000 JDS Uniphase Corp.* 2,618
25,000 Lucent Technologies, Inc. 1,622
19,500 QUALCOMM, Inc.* 3,689
25,000 Veritas Software Corp* 1,898
------------
14,877
------------
TELECOMMUNICATIONS - 3.6%
52,000 Nextel Communications, Class A* 3,526
23,500 Vodafone AirTouch PLC 5,587
------------
9,113
------------
TELEPHONE - 3.0%
52,500 Ameritech Corp. 3,527
45,000 MCI WorldCom, Inc.* 3,234
12,000 NEXTLINK Communications, Inc. Class A* 622
------------
7,383
------------
Total Common Stocks
(cost $193,367) 246,924
------------
PRINCIPAL
AMOUNT
(000S)
- -------------
SHORT-TERM INVESTMENT - 0.9%
(cost $2,122)
$2,122 Banco Popular, Puerto Rico,
Eurodollar Time Deposit,
5.688%, 10/1/99 2,122
------------
Total Investments - 100.0%
(cost $195,489) 249,046
Assets Less Other Liabilities - 0.0% 59
------------
NET ASSETS - 100.0% $249,105
============
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
MID CAP GROWTH FUND
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 91.5%
BIOTECHNOLOGY - 4.9%
60,000 Biogen, Inc. $ 4,729
120,000 Chiron Corp. 3,322
9,081 Genentech, Inc. 1,329
58,000 Genzyme Corp. 2,614
------------
11,994
------------
COMPUTERS - 5.4%
13,139 Foundry Networks, Inc. 1,656
56,100 Lexmark International Group, Inc. 4,516
90,000 National Computer Systems, Inc. 3,451
50,000 Network Appliance, Inc. 3,581
------------
13,204
------------
DIVERSIFIED FINANCIAL SERVICES - 1.8%
90,000 Hambrecht & Quist, Inc.* 4,404
------------
ELECTRONICS - 9.9%
93,200 Credence Systems Corp. 4,182
45,000 Linear Technology Corp. 2,645
39,000 Maxim Integrated Products 2,461
90,000 Micrel, Inc. 3,904
38,000 Power Integrations, Inc. 2,631
42,000 Solectron Corp.* 3,016
64,000 Vitesse Semiconductor Corp. 5,464
------------
24,303
------------
ENTERTAINMENT - 0.2%
20,000 Zomax, Inc. 518
------------
FOREST PRODUCTS & PAPER - 0.9%
54,000 Willamette Industries 2,329
------------
HEALTH CARE - 2.1%
46,800 Minimed, Inc. 4,598
17,000 Techne Corp. 533
------------
5,131
------------
IRON/STEEL - 0.5%
25,000 Nucor Corp. 1,191
------------
MACHINERY-DIVERSIFIED - 1.4%
64,500 Rockwell International Corp. 3,386
------------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
MEDIA - 1.9%
328 Tivo, Inc. $ 10
56,400 Univision Communications, Inc. 4,589
------------
4,599
------------
OIL & GAS PRODUCERS - 4.5%
85,000 Apache Corp. 3,671
40,300 Diamond Offshore Drilling 1,345
80,000 EOG Resources, Inc. 1,700
140,000 Transocean Offshore, Inc. 4,287
------------
11,003
------------
OIL & GAS SERVICES - 3.2%
97,300 Baker Hughes, Inc. 2,822
80,000 Hanover Compressor Co. 2,545
83,000 Weatherford International, Inc. 2,656
------------
8,023
------------
PHARMACEUTICALS - 1.8%
40,000 Gilead Sciences, Inc. 2,568
19,500 MedImmune, Inc. 1,943
------------
4,511
------------
RETAIL - 2.0%
35,000 Kohl's Corp. 2,314
52,000 Tandy Corp. 2,688
------------
5,002
------------
SEMICONDUCTORS - 10.2%
80,000 Altera Corp. 3,470
59,600 Conexant Systems, Inc. 4,330
120,000 Cree Research, Inc. 4,073
44,000 PMC - Sierra, Inc. 4,070
66,500 SDL, Inc. 5,075
10,000 Triquint Semiconductor, Inc. 572
52,500 Xilinx, Inc. 3,440
------------
25,030
------------
SOFTWARE - 23.4%
15,200 Allscrips Pharmaceuticals, Inc 241
44,900 BroadVision, Inc. 5,975
67,500 Citrix Systems, Inc. 4,181
21,000 Covad Communications Group, Inc. 915
22,444 Digex, Inc. 532
45,000 DoubleClick, Inc. 5,361
55,000 Electronic Arts, Inc. 3,981
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
SOFTWARE - 23.4% (CONT'D.)
31,000 Genesys Telecomm Labs, Inc. $ 1,416
30,000 Inktomi Corp. 3,601
7,619 Internap Network Services 340
12,496 Internet Capital Group LLC 1,098
8,727 Kana Communications, Inc. 435
92,000 Legato Systems, Inc. 4,011
80,000 Mercury Interactive Corp. 5,165
12,895 NetZero, Inc. 335
4,166 pcOrder.com, Inc. 146
87,000 Rational Software Corp. 2,547
144,000 Research In Motion Ltd. 4,455
111,500 Verity, Inc. 7,673
58,000 Vignette Corp. 5,249
------------
57,657
------------
TELECOMMUNICATION EQUIPMENT - 9.4%
101,000 Antec Corp. 5,366
78,000 E-Tek Dynamics, Inc. 4,231
75,400 General Instrument Corp. 3,628
49,300 JDS Uniphase Corp. 5,611
12,500 Powerwave Technologies, Inc. 603
20,000 QUALCOMM, Inc. 3,784
------------
23,223
------------
TELECOMMUNICATIONS - 6.1%
51,500 Comverse Technology, Inc. 4,857
115,000 McLeodUSA, Inc. 4,895
77,000 U.S. Cellular Corp. 5,236
------------
14,988
------------
TELEPHONE - 1.9%
89,600 NEXTLINK Communications, Inc.,
Class A* 4,645
------------
Total Common Stocks
(cost $194,714) 225,141
------------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
SHORT-TERM INVESTMENT - 6.6%
(cost $16,134)
$16,134 Banco Popular, Puerto Rico,
Eurodollar Time Deposits,
5.688%, 10/1/99 $ 16,134
------------
Total Investments - 98.1%
(cost $210,848) 241,275
Assets less Other Liabilities - 1.9% 4,728
------------
Net Assets - 100.0% $246,003
============
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
SMALL CAP INDEX FUND
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 99.5%
ADVERTISING - 0.6%
800 AdForce* $ 20
3,041 Advo, Inc.* 61
2,300 E4L, Inc.* 9
4,100 Getty Images, Inc.* 99
100 Grey Advertising, Inc. 37
7,050 Ha-Lo Industries, Inc.* 44
2,300 Marketing Services Group, Inc.* 27
500 Modem Media Poppe Tyson, Inc.* 19
3,300 Penton Media, Inc. 54
5,500 R.H. Donnelley Corp. 102
7,200 Sitel Corp.* 31
7,000 True North Communications 255
4,300 Valuevision International, Inc.* 112
------------
870
------------
AEROSPACE - 0.8%
4,500 AAR Corp. 81
3,000 Aeroflex, Inc.* 37
1,700 Alliant Techsystems, Inc.* 118
3,900 BE Aerospace, Inc.* 47
800 Curtiss-Wright Corp. 26
4,140 Fairchild Corp. (The)* 42
5,500 Gencorp, Inc. 101
800 Heico Corp. 15
3,700 Kaman Corp. 47
2,000 Kellstrom Industries, Inc.* 20
2,350 Nichols Research Corp.* 63
6,200 Orbital Sciences Corp.* 108
1,500 Primex Technologies, Inc. 30
3,600 Remec, Inc.* 49
1,700 Sequa Corp.* 107
6,100 Titan Corp.* 88
1,900 Triumph Group, Inc.* 50
------------
1,029
------------
AGRICULTURE - 0.3%
6,300 Agribiotech, Inc.* 26
1,700 Agribrands International, Inc.* 84
5,800 Cadiz, Inc.* 55
6,300 Delta & Pineland Co. 163
3,800 Hines Horticulture, Inc.* 37
1,100 Tejon Ranch Co. 32
------------
397
------------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
AIRLINES - 0.4%
9,400 Airtran Holdings, Inc.* $ 47
4,000 Alaska Airgroup, Inc.* 163
5,373 America West Holdings Corp.* 93
600 Amtran, Inc.* 11
2,000 Atlantic Coast Airlines Holding, Inc.* 36
2,900 Frontier Airlines, Inc.* 28
5,200 Mesa Air Group, Inc.* 32
2,100 Mesaba Holdings, Inc.* 25
2,300 Midwest Express Holdings, Inc.* 60
3,400 Skywest, Inc. 75
10,000 Trans World Airlines* 36
------------
606
------------
APPAREL - 0.7%
3,800 Authentic Fitness Corp. 67
8,900 Burlington Industries, Inc.* 39
1,500 Columbia Sportswear Co.* 21
2,300 Donna Karan International, Inc.* 20
600 Global Sports, Inc.* 13
1,300 Guess ?, Inc.* 17
1,100 K-Swiss, Inc. 35
3,750 Kellwood Co. 82
5,186 Nautica Enterprises, Inc.* 84
2,100 Oshkosh B'gosh, Inc. 34
1,100 Oxford Industries, Inc. 24
3,700 Phillips-Van Heusen 33
3,550 Quiksilver, Inc.* 65
7,500 Reebok International Ltd.* 80
4,600 Russell Corp. 65
7,800 Stride Rite Corp. 55
900 Tarrant Apparel Group* 10
1,600 Timberland Co.* 62
800 Tropical Sportswear International Corp.* 15
9,800 Unifi, Inc.* 108
6,800 Wolverine World Wide 77
------------
1,006
------------
AUTO MANUFACTURERS - 0.1%
1,600 ASV, Inc.* 23
1,800 Oshkosh Truck Corp. 48
3,500 Wabash National Corp. 71
------------
142
------------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
AUTO PARTS & EQUIPMENT - 0.7%
3,300 Aftermarket Technology Corp.* $ 35
1,400 American Axle & Manufacturing
Holdings, Inc.* 20
4,200 Arvin Industries, Inc. 130
2,100 Bandag, Inc. 67
10,400 Collins & Aikman Corp. 73
3,600 Delco Remy International, Inc.* 32
2,600 Dura Automotive Systems, Inc.* 63
3,200 Exide Corp. 31
2,900 Hayes Lemmerz International, Inc.* 67
6,750 Miller Industries, Inc.* 19
3,500 OEA, Inc. 27
3,075 Simpson Industries 34
1,400 Standard Motor Products, Inc. 27
2,425 Standard Products Co. 86
3,300 Superior Industries International 92
2,750 Titan International, Inc. 28
6,600 Tower Automotive, Inc.* 131
2,412 Wynn's International, Inc. 38
------------
1,000
------------
BANKS - 6.0%
1,600 Alabama National Bancorp 37
4,682 Amcore Financial, Inc. 97
1,100 Anchor Financial Corp. 40
2,000 Area Bancshares Corp. 58
700 Bancfirst Corp. 22
1,200 Bancfirst Ohio Corp. 26
1,300 Banco Santander, Puerto Rico 22
9,380 Bancorpsouth, Inc. 159
3,700 Bancwest Corp. 150
1,868 Bank of Granite Corp. 53
3,810 Banknorth Group, Inc. 114
3,100 Bay View Capital Corp. 41
1,852 BOK Financial Corp.* 36
2,642 Brenton Banks, Inc. 37
1,100 BSB Bancorp, Inc. 26
2,180 BT Financial Corp. 53
850 Capital City Bank Group, Inc. 19
3,600 Carolina First Corp. 71
1,500 Cathay Bancorp, Inc. 54
3,052 Centennial Bancorp* 35
1,500 Century South Banks, Inc. 35
2,235 Chemical Financial Corp. 76
4,657 Chittenden Corp. 133
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
BANKS - 6.0% (CONT'D.)
4,100 Citizens Banking Corp. $107
2,799 City Holding Co. 54
4,585 Commerce Bancorp, Inc. 190
7,700 Community First Bankshares 130
1,844 Community Trust Bancorp 40
1,600 Corus Bankshares, Inc. 41
1,400 CPB, Inc. 32
1,855 CVB Financial Corp. 49
3,700 East-West Bancorp, Inc. 44
2,081 F & M BanCorp., Inc. 72
1,543 F & M Bancorp 41
3,720 F & M National Corp. 97
3,061 F.N.B. Corp. 74
1,100 Farmers Capital Bank Corp. 39
1,500 FCNB Corp. 28
3,950 First Bancorp/Puerto Rico 78
1,800 First Busey Corp, Class A 41
2,600 First Charter Corp. 45
900 First Citizens Bankshares 69
1,000 First Commerce Bankshares, Inc. 21
5,100 First Commonwealth Financial Co 130
4,601 First Financial Bancorp 108
1,614 First Financial Bankshares, Inc. 54
1,053 First Financial Corp. 39
1,950 First Merchants Corp. 46
3,973 First Midwest Bancorp, Inc. 152
1,600 First Republic Bank* 42
1,804 First Source Corp. 43
4,100 First United Bancshares 73
2,400 Frontier Financial Corp. 61
1,870 GBC Bancorp 36
1,500 Glacier Bancorp, Inc. 26
2,610 Grand Premier Financial, Inc. 40
1,600 Greater Bay Bancorp 54
1,400 Hamilton Bancorp, Inc.* 30
1,475 Hancock Holding Co. 59
1,205 Harleysville National Corp. 42
6,426 Hudson United Bancorp 198
5,728 Imperial Bancorp 122
2,000 Independent Bank Corp. 26
2,075 International Bancshares Corp. 93
2,550 Interwest Bancorp, Inc. 53
2,168 Investors Financial Services Co 75
1,800 Irwin Financial Corp. 36
1,433 Jeffbanks, Inc. 41
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
SMALL CAP INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 99.5% (CONT'D.)
BANKS - 6.0% (CONT'D.)
1,000 Mahoning National Bancorp $ 39
1,600 Merchants New York Bancorp 61
425 Michigan Financial Corp. 13
1,309 Mid-America Bancorp 32
1,700 Mid-State Bancshares 52
1,400 Midwest Banc Holdings, Inc. 23
1,000 Mississippi Valley Bancshares 32
2,400 National Bancorp of Alaska 62
2,818 National City Bancshares 86
2,841 National Penn Bankshares, Inc. 78
2,114 NBT Bancorp, Inc. 37
1,450 Omega Financial Corp. 46
5,493 One Valley Bancorp, Inc. 190
1,866 Oriental Financial Group 43
4,000 Pacific Capital Bancorp 138
1,300 Park National Corp. 131
1,000 Peoples Holding Co. 34
4,300 Premier Bancshares, Inc. 75
2,600 Premier National Bancorp, Inc. 45
4,243 Provident Bankshares Corp. 90
1,700 R & G Financial Corp. 24
6,825 Republic Bancorp 79
1,000 Republic Bancorp, Inc. 10
1,000 Republic Bancshares, Inc.* 14
8,432 Republic Security Financial Corp. 73
3,200 Riggs National Corp. 54
4,500 S & T Bancorp, Inc. 102
1,600 Sandy Spring Bancorp, Inc. 50
1,800 Second Bancorp, Inc. 49
1,650 Shoreline Financial Corp. 34
3,000 Silicon Valley Bancshares 72
1,100 Simmons First National Corp. 33
9,762 Sky Financial Group, Inc.* 229
4,500 Southwest Bancorp of Texas 78
4,050 Sterling Bancshares, Inc. 46
900 Sterling Financial Corp. 35
6,037 Susquehanna Bancshares, Inc. 104
2,350 Texas Regional Bancshares 58
4,150 Triangle Bancorp, Inc. 77
2,700 Trust Co. of New Jersey 62
4,382 Trustco Bank Corp. 129
2,679 UMB Financial Corp. 112
7,100 United Bankshares, Inc. 173
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
BANKS - 6.0% (CONT'D.)
2,500 United National Bancorp $ 58
2,200 U.S. Bancorp, Inc. 30
1,660 USB Holding Co. Inc. 28
6,960 UST Corp. 214
3,400 Wesbanco, Inc. 87
2,400 West Coast Bancorp 35
3,500 Western Bancorp 135
6,900 Westernbank Puerto Rico 84
3,850 Whitney Holding Corp. 132
------------
8,172
------------
BEVERAGES - 0.3%
3,000 Beringer Wine Estates Holdings * 123
709 Buenos Aires Embotelladora SA -
2,600 Canandaigua Brands, Inc.* 155
227 Coca-Cola Bottling Co. Consolidated 13
100 Farmer Bros. Co. 17
1,400 Robert Mondavi* 53
------------
361
------------
BIOTECHNOLOGY - 1.8%
2,600 Affymetrix, Inc.* 256
2,200 Aviron* 53
1,400 Bio-Rad Laboratories* 38
8,500 Bio-Technology General Corp.* 82
2,000 Entremed, Inc.* 43
3,597 Enzo Biochem, Inc.* 102
5,900 Enzon, Inc.* 180
3,700 Human Genome Sciences, Inc.* 273
3,400 IDEC Pharmaceuticals Corp.* 320
3,900 Incyte Pharmaceuticals, Inc.* 90
2,200 Inhale Therapeutic Systems, Inc.* 67
700 Invitrogen Corp.* 24
6,423 Liposome Co., Inc.* 49
5,900 Millennium Pharmaceuticals* 383
5,145 Organogenesis, Inc.* 38
4,100 PE Corp.-Celera Genomics * 165
3,000 Protein Design Labs, Inc.* 108
2,700 Regeneron Pharmaceutical* 22
1,300 SafeScience, Inc.* 21
3,550 Serologicals Corp.* 15
2,800 Transkaryotic Therapies, Inc.* 144
2,700 Vical, Inc.* 37
------------
2,510
------------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
BUILDING MATERIALS - 1.1%
4,700 Apogee Enterprises, Inc. $ 33
900 Butler Manufacturing Co. 24
1,400 Centex Construction Products 52
4,600 Comfort Systems USA, Inc.* 54
8,800 Dal-Tile International, Inc.* 70
3,207 Elcor Corp. 80
3,040 Florida Rock Industries 106
2,000 Genlyte Group, Inc.* 48
1,300 Giant Cement Holding, Inc. 30
8,300 Hussmann International, Inc. 141
3,000 Lone Star Industries 150
1,700 LSI Industries, Inc. 39
500 Mestek, Inc.* 10
3,700 Modine Manufacturing Co. 86
3,100 NCI Building Systems, Inc.* 51
1,600 Nortek, Inc.* 55
4,500 Rayonier, Inc. 189
1,600 Republic Group, Inc. 22
1,300 Simpson Manufacturing Co., Inc.* 61
2,100 TJ International, Inc. 53
3,400 Texas Industries, Inc. 126
700 Trex Co., Inc.* 19
2,500 Universal Forest Products 33
------------
1,532
------------
CHEMICALS - 1.9%
10,200 Airgas, Inc.* 119
4,100 Albemarle Corp. 83
3,600 Arch Chemicals, Inc. 58
1,000 Bush Boake Allen, Inc.* 26
3,800 Cambrex Corp. 100
3,000 Chemfirst, Inc. 82
18,910 CK Witco Corp. 275
7,000 Cytec Industries, Inc.* 168
10,400 Ethyl Corp. 40
5,750 Ferro Corp. 123
2,200 Fuller (H. B.) Co. 134
5,100 Georgia Gulf Corp. 90
3,500 Geon Co. 90
8,100 Hanna (M.A.) Co. 92
2,500 International Specialty Product* 25
3,834 Lilly Industries, Inc. 52
2,500 Macdermid, Inc. 85
3,100 Minerals Technologies, Inc. 151
4,337 Mississippi Chemical Corp. 30
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
CHEMICALS - 1.9% (CONT'D.)
3,600 NL Industries $ 45
2,100 Octel Corp.* 24
3,850 OM Group, Inc. 148
5,100 Schulman (A.), Inc. 88
2,500 Spartech Corp. 73
1,000 Stepan Co. 23
5,600 Terra Industries, Inc. 9
3,800 U.S. Plastic Lumber Co.* 47
10,700 W.R. Grace & Co.* 172
5,100 Wellman, Inc. 92
------------
2,544
------------
COAL - 0.1%
2,800 Arch Coal, Inc. 34
3,800 CONSOL Energy, Inc. 55
------------
89
------------
COMMERCIAL SERVICES - 4.8%
3,000 Aaron Rents, Inc. 52
1,600 Abacus Direct Corp.* 195
2,624 ABM Industries, Inc. 67
1,500 Administaff, Inc.* 24
1,300 AHL Services, Inc.* 34
1,000 Albany Molecular Research, Inc.* 25
3,600 Ameripath, Inc.* 30
1,700 Applied Analytical Industries, Inc.* 19
3,600 Avis Rent A Car, Inc.* 75
800 Bacou USA, Inc.* 13
393 Berlitz International, Inc.* 8
6,300 Billing Concepts Corp.* 32
3,702 Building One Services Corp.* 45
2,000 Bright Horizons Family Solution* 31
4,300 Budget Group, Inc.* 30
1,800 Burns International Services Co* 29
1,200 Career Education Corp.* 35
800 Careerbuilder, Inc.* 6
32,700 Caremark Rx, Inc.* 184
1,600 Carey International, Inc.* 40
1,900 Carriage Services, Inc.* 16
1,800 CDI Corp.* 49
1,650 Central Parking Corp. 48
9,600 Century Business Services, Inc.* 112
1,200 Charles River Associates, Inc.* 33
1,500 Chemed Corp. 45
2,600 Coinstar, Inc.* 26
800 Corinthian Colleges, Inc.* 15
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
SMALL CAP INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 99.5% (CONT'D.)
COMMERCIAL SERVICES - 4.8% (CONT'D.)
1,600 Cornell Corrections, Inc.* $ 26
1,300 Corporate Executive Board Co.* 53
2,000 Cort Business Services Corp.* 46
1,100 CoStar Group, Inc.* 26
1,300 CPI Corp. 44
5,950 Crawford & Co. 85
5,000 Data Broadcasting Corp.* 38
1,600 Data Transmission Network* 40
1,600 DBT Online, Inc.* 40
1,300 Diamond Technology Partners, Inc.* 58
4,000 Dollar Thrifty Automotive Group* 83
800 Duff & Phelps Credit Rating 64
3,200 Education Management, Inc.* 40
2,474 Electro Rent Corp.* 31
1,900 F.Y.I., Inc.* 64
2,700 First Consulting Group, Inc.* 27
8,300 First Health Group Corp.* 186
400 Forrester Research, Inc.* 16
3,500 Franklin Covey Co.* 27
5,000 Group Maintenance America Corp.* 62
2,200 Heidrick & Struggles, Inc.* 42
4,700 Hooper Holmes, Inc. 120
4,400 Integrated Electrical Services* 70
9,230 Interim Services, Inc.* 151
3,000 International Telcomm Data Systems* 25
3,450 Iron Mountain, Inc.* 117
2,425 ITT Educational Services, Inc.* 47
2,900 Kelly Services, Inc. 87
3,600 Korn/Ferry International* 83
1,800 Kroll-O'Gara Co.* 30
5,900 Labor Ready, Inc.* 59
1,300 Landauer, Inc. 33
2,500 Lason, Inc.* 111
1,800 Learning Tree International* 30
1,900 Maximus, Inc.* 57
1,532 Mcgrath Rentcorp 28
5,700 Medquist, Inc.* 191
2,000 Memberworks, Inc.* 67
2,700 Midas, Inc. 56
6,700 NationsRent, Inc.* 52
4,000 National Equipment Services* 41
1,300 National Processing, Inc.* 12
6,300 Navigant Consulting Co.* 292
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMERCIAL SERVICES - 4.8% (CONT'D.)
1,650 NCO Group, Inc.* $ 78
2,000 Neff Corp.* 26
1,700 Nextera Enterprises LLC* 6
2,975 NFO Worldwide, Inc.* 38
8,200 Ogden Corp. 82
11,600 Olsten Corp. 121
1,800 On Assignment, Inc.* 43
6,600 Orthodontic Centers of America* 115
4,200 Parexel International Corp.* 38
2,600 Pediatrix Medical Group, Inc.* 36
4,400 Personnel Group of America, Inc.* 27
4,950 Profit Recovery Group International* 221
3,067 Pharmaceutical Product Development* 42
12,500 Phycor, Inc.* 55
1,300 Pierce Leahy Corp.* 31
6,400 Pittston Brink's Group 148
2,500 Plexus Corp.* 77
3,200 Prepaid Legal Services, Inc.* 126
3,400 Primark Corp.* 97
500 Professional Detailing, Inc.* 13
3,300 Protection One, Inc.* 13
1,300 Provant, Inc.* 21
3,000 Proxymed, Inc.* 38
4,300 Quanta Services, Inc.* 126
6,260 Renaissance Worldwide, Inc.* 24
2,800 Rent-A-Center, Inc.* 52
2,787 Rent-Way, Inc.* 53
2,900 Rollins, Inc. 45
6,745 Romac International, Inc.* 56
3,000 Service Experts, Inc.* 31
1,400 Source Information Management Co.* 20
2,900 Staff Leasing, Inc.* 29
5,000 Staffmark, Inc.* 40
1,200 Startek, Inc.* 66
1,200 Strayer Education, Inc. 24
1,200 Superior Consultant Holdings* 14
3,700 Teletech Holdings, Inc.* 53
2,200 Towne Services, Inc.* 7
500 Track Data Corp.* 5
2,300 United Payors & United Providers, Inc.* 41
10,806 US Oncology, Inc.* 98
1,350 Volt Information Sciences, Inc.* 33
2,200 Wackhenut Corp. 43
1,700 Wackenhut Corrections Corp.* 23
1,800 Xceed, Inc.* 39
------------
6,589
------------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMPUTERS - 4.2%
1,700 ACT Networks, Inc.* $ 15
3,200 Advanced Digital Information* 89
1,900 Anacomp, Inc.* 31
3,600 Analysts International Corp. 37
4,000 Ancor Communications, Inc.* 97
3,500 Anixter International, Inc.* 81
4,400 AnswerThink Consulting Group, Inc.* 42
3,050 APEX Inc.* 57
4,400 Auspex Systems, Inc. 39
5,406 Avant! Corp.* 96
4,600 Axent Technologies, Inc.* 60
2,400 Bell & Howell Co.* 88
3,000 Black Box Corp.* 158
1,800 Brooktrout, Inc.* 25
1,500 CACI International, Inc.* 32
800 Catapult Communications Corp.* 12
7,500 Ciber, Inc.* 115
500 Cognizant Technology Solutions * 16
3,800 Complete Business Solutions* 52
8,100 Compucom Systems, Inc.* 30
4,950 Computer Horizons Corp.* 58
3,700 Computer Network Technology Corp.* 34
2,700 Computer Task Group, Inc. 40
8,000 Concurrent Computer Corp.* 55
2,200 Cotelligent, Inc.* 8
1,700 Cybex Computer Products Corp.* 57
8,200 Data General Corp.* 173
2,400 Digital River, Inc.* 52
3,100 Echelon Corp.* 24
1,400 eFax.com, Inc.* 11
2,700 Emulex Corp.* 232
2,600 Entrust Technologies, Inc.* 58
1,600 Factset Research Systems, Inc. 91
700 Globix Corp.* 33
2,199 Henry (Jack) & Associates 81
3,315 Hutchinson Technology* 90
2,100 Hypercom Corp.* 17
6,432 Inacom Corp.* 59
3,600 InFocus Systems, Inc.* 60
7,100 Intergraph Corp.* 40
4,700 InterVoice-Brite, Inc.* 52
600 International Integration, Inc.* 20
2,400 Intraware, Inc.* 63
44,100 Iomega Corp.* 149
3,800 ISS Group, Inc.* 104
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMPUTERS - 4.2% (CONT'D.)
9,200 Komag, Inc.* $ 28
2,075 Kronos, Inc.* 76
700 Manhattan Associates, Inc.* 4
5,700 Mastech Corp.* 77
10,400 Maxtor Corp.* 69
1,600 Maxwell Technologies, Inc.* 21
10,700 Mentor Graphics Corp.* 92
1,700 Mercury Computer Systems, Inc.* 58
5,450 Metamor Worldwide, Inc.* 97
5,800 Micron Electronics, Inc.* 61
2,600 Micros Systems, Inc.* 105
5,000 MMC Networks, Inc.* 156
4,800 MTI Technology Corp.* 111
3,100 MTS Systems Corp. 32
5,200 National Computer Systems Inc. 199
2,100 Network Peripherals, Inc.* 38
3,100 PubliCARD, Inc.* 26
1,700 QRS Corp.* 109
1,700 Radiant Systems, Inc.* 28
1,100 RadiSys, Inc.* 43
7,800 Read-Rite Corp.* 34
5,900 RSA Security, Inc.* 157
800 RWD Technologies, Inc.* 6
8,500 S3, Inc.* 89
3,400 Sandisk Corp.* 222
7,000 Sequent Computer Systems. Inc.* 126
4,600 Smart Modular Technologies* 157
3,600 Sykes Enterprises, Inc.* 89
900 Syntel, Inc.* 8
5,366 Systems & Computer Technology Corp.* 67
6,812 Technology Solutions Co.* 96
6,700 Tyler Technologies, Inc.* 30
3,300 Visual Networks, Inc.* 140
5,800 Wave Systems Corp.* 62
15,000 Western Digital Corp.* 56
3,500 Xircom, Inc.* 149
------------
5,751
------------
COSMETICS/PERSONAL CARE - 0.1%
1,600 Chattem, Inc.* 35
2,264 Kimberly-Clark Corp. 119
------------
154
------------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
SMALL CAP INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 99.5% (CONT'D.)
DISTRIBUTION/WHOLESALE - 0.6%
4,300 Anicom, Inc.* $ 23
3,100 Aviall, Inc.* 32
1,900 Aviation Sales Co.* 36
8,824 Brightpoint, Inc.* 64
5,600 Cellstar Corp.* 42
8,300 CHS Electronics, Inc.* 12
2,900 Daisytek International Corp.* 41
4,700 Handleman Co.* 62
3,875 Hughes Supply, Inc. 84
700 JLK Direct Distribution, Inc.* 5
2,700 Keystone Automotive Industries, Inc.* 30
13,700 Merisel, Inc.* 22
1,600 Miami Computer Supply Corp.* 29
2,100 Navarre Corp.* 20
5,362 Owens & Minor, Inc. Holding Co. 52
1,700 SCP Pool Corp.* 40
5,300 United Stationers, Inc.* 113
600 Valley Media, Inc.* 7
2,850 Watsco, Inc. 32
4,200 Wesco International, Inc.* 59
------------
805
------------
DIVERSIFIED FINANCIAL SERVICES - 1.8%
3,100 Advanta Corp. 45
1,200 Advest Group, Inc. 22
3,800 Affiliated Managers Group* 104
10,300 AmeriCredit Corp.* 154
8,300 Amresco, Inc.* 25
6,700 Arcadia Financial Ltd.* 29
3,400 Charter Municipal Mortgage Acceptance Co. 44
3,800 Cityscape Financial Corp.* -
1,300 CompuCredit Corp.* 24
2,300 Conning Corp. 26
1,900 Contifinancial Corp.* 2
3,800 Credit Acceptance Corp.* 23
800 Creditrust Corp.* 18
2,086 Dain Rauscher Corp. 102
5,200 Doral Financial Corp. 70
1,600 DVI, Inc.* 26
4,900 Eaton Vance Corp. 157
2,500 Everen Capital Corp. 74
1,300 Federal Agricultural Mortgage Corp.* 26
8,500 Finet.com, Inc.* 26
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 1.8% (CONT'D.)
1,800 Financial Federal Corp.* $ 34
2,700 First Sierra Financial, Inc.* 29
1,800 Franchise Mortgage Acceptance Corp. 13
2,300 Freedom Securities Corp. 31
3,900 Friedman, Billings, Ramsey Group 27
3,400 Hambrecht & Quist, Inc.* 166
4,328 Imperial Credit Industries* 19
3,500 Jefferies Group, Inc. 73
1,200 John Nuveen Co. 45
3,800 Long Beach Financial Corp.* 60
6,366 Metris Companies, Inc. 187
4,635 Morgan Keegan, Inc. 79
1,700 National Discount Brokers Group* 45
1,600 New Century Financial Corp.* 28
900 NextCard, Inc.* 22
7,350 Phoenix Investment Partners Ltd. 62
4,400 Pioneer Group, Inc. 66
400 Prism Financial Corp.* 4
6,600 Raymond James Financial Corp. 132
3,700 Resource America, Inc. 28
3,848 Resource Bancshares MTG Group 19
1,200 Rock Financial Corp. 22
1,902 Southwest Securities Group 51
100 Siebert Financial Corp. 2
700 Student Loan Corp. 29
9,000 UniCapital Corp* 29
8,700 United Asset Management Corp. 167
700 WFS Financial, Inc.* 14
------------
2,480
------------
ELECTRIC - 2.1%
6,100 Avista Corp. 107
3,623 Black Hills Corp. 84
2,800 Central Hudson Gas & Electric Corp. 110
2,200 Cilcorp, Inc. 143
3,700 Cleco Corp. 120
5,300 CMP Group, Inc. 140
3,400 Eastern Utilities Associates 102
9,900 EL Paso Electric Co.* 89
2,800 Empire District Electric Co. 72
5,300 Hawaiian Electric Industries 186
6,200 Idacorp, Inc. 187
2,625 Madison Gas & Electric Co. 52
8,825 MDU Resources Group, Inc. 199
3,800 Northwestern Corp. 86
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
ELECTRIC - 2.1% (CONT'D.)
2,167 NSTAR $ 84
2,000 Otter Tail Power Co. 85
5,900 Public Service Co. of New Mexico 108
6,000 RGS Energy Group, Inc. 147
13,088 Sierra Pacific Resources 291
3,850 SIGCORP, Inc. 98
2,000 TNP Enterprises, Inc. 78
1,000 Trigen Energy Corp. 23
5,420 Unisource Energy Corp. Holding* 64
2,300 United Illuminating Co. 111
4,400 WPS Resources Corp. 123
------------
2,889
------------
ELECTRICAL COMPONENT & EQUIPMENT - 1.1%
1,200 AFC Cable Systems, Inc.* 51
2,300 Alpine Group, Inc.* 30
2,600 American Superconductor Corp.* 40
5,300 Ametek, Inc. 105
5,491 Artesyn Technologies, Inc.* 104
4,000 Belden, Inc. 82
2,100 C&D Technologies, Inc. 76
4,650 Cable Design Technologies Corp.* 106
6,400 C-Cube Microsystems, Inc.* 278
5,200 General Cable Corp. 62
3,200 Littelfuse, Inc.* 71
1,900 Power-One, Inc.* 48
4,500 Rayovac Corp.* 97
2,525 SLI, Inc.* 54
7,400 UCAR International, Inc.* 169
3,400 Valence Technology, Inc.* 16
3,100 Vicor Corp.* 70
------------
1,459
------------
ELECTRONICS - 4.1%
1,600 Aavid Thermal Technologies* 36
7,000 Ampex Corp.* 21
2,700 Amphenol Corp.* 134
2,400 Anadigics, Inc.* 68
1,000 Analogic Corp. 32
1,700 Arguss Holdings, Inc.* 25
2,500 Benchmark Electronics, Inc.* 88
4,448 BMC Industries, Inc.-Minn 55
3,369 Brady Corp. 108
1,600 Britesmile, Inc.* 16
4,700 Checkpoint Systems, Inc.* 44
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
ELECTRONICS - 4.1% (CONT'D.)
3,900 Coherent, Inc.* $ 87
3,200 Cohu, Inc. 68
3,500 Credence Systems Corp.* 157
4,480 CTS Corp. 258
850 Cubic Corp. 20
4,600 Cymer, Inc.* 160
4,800 DII Group, Inc.* 169
3,700 Dionex Corp.* 158
1,900 DSP Group, Inc.* 76
7,500 EG&G, Inc. 299
2,200 Electro Scientific Industries, Inc.* 117
6,600 Fisher Scientific International* 142
4,400 Genrad, Inc.* 84
2,200 Hadco Corp.* 95
1,600 Harmon Industries, Inc. 20
3,500 Identix Inc.* 29
2,500 Innovex Inc. 23
13,600 Integrated Device Technology, Inc.* 252
1,400 ITI Technologies, Inc.* 42
6,300 Kemet Corp.* 201
4,600 Kent Electronics Corp.* 85
5,900 LTX Corp.* 81
1,200 Mechanical Technology, Inc.* 43
5,842 Methode Electronics 110
6,300 Mettler Toledo International, Inc.* 187
4,700 Micrel, Inc.* 204
1,600 Molecular Devices Corp.* 44
700 Moog, Inc.* 20
2,780 OAK Industries, Inc.* 95
1,900 Optical Coating Laboratory 175
6,820 Paxar Corp.* 66
5,000 Pittway Corp. 157
1,500 Park Electrochemical Corp. 49
1,800 Power Integrations, Inc.* 125
1,300 Rogers Corp.* 48
4,000 Sawtek, Inc.* 140
11,200 Sensormatic Electronics Corp.* 142
3,000 Sipex Corp.* 43
2,000 Stoneridge, Inc.* 35
1,900 Technitrol, Inc. 67
7,200 Tektronix, Inc. 241
2,700 Thermedics, Inc.* 20
700 Thermo Optek Corp.* 6
1,000 Thermoquest Corp.* 10
400 Thermospectra Corp.* 6
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
SMALL CAP INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 99.5% (CONT'D.)
ELECTRONICS - 4.1% (CONT'D.)
3,400 Trimble Navigation Ltd.* $ 36
5,000 Varian, Inc.* 89
1,500 Veeco Instruments, Inc.* 42
2,800 Watts Industries 61
1,400 Woodward Governor Co. 35
------------
5,546
------------
ENGINEERING/CONSTRUCTION - 0.5%
4,200 Dycom Industries, Inc.* 177
1,400 Emcor Group, Inc.* 27
6,800 Foster Wheeler Corp. 82
3,075 Granite Construction, Inc. 80
3,300 Insituform Technologies, Inc.* 82
3,600 Jacobs Engineering Group, Inc.* 117
5,300 Morrison Knudsen Corp.* 55
700 Pitt-Des Moines, Inc. 15
1,500 Stone & Webster, Inc. 42
2,100 URS Corp.* 51
------------
728
------------
ENTERTAINMENT - 1.0%
3,000 AMC Entertainment, Inc.* 42
1,200 Anchor Gaming* 71
3,200 Argosy Gaming Co.* 42
4,900 Ascent Entertainment Group* 67
6,700 Aztar Corp.* 69
6,100 Boyd Gaming Corp.* 37
1,555 Carmike Cinemas, Inc.* 20
1,600 Championship Auto Racing Teams * 42
1,100 Churchill Downs, Inc.* 25
2,300 Dover Downs Entertainment 32
7,300 Fairfield Communities, Inc.* 80
2,900 Gaylord Entertainment Co. 86
900 GC Companies, Inc.* 27
6,200 GTECH Holdings Corp.* 133
3,900 Hollywood Park, Inc.* 60
729 International Speedway Corp. 38
2,400 Loews Cineplex Entertainment Co.* 19
2,100 Macrovision Corp.* 93
4,600 Players International, Inc.* 34
1,600 Scientific Games Holdings, Inc.* 32
3,400 Station Casinos, Inc.* 79
1,500 Steinway Musical Instruments* 31
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
ENTERTAINMENT - 1.0% (CONT'D.)
6,000 Sunterra Corp.* $ 71
600 Trendwest Resorts, Inc.* 16
3,700 Vail Resorts, Inc.* 86
1,800 Vistana, Inc.* 27
1,700 Zomax, Inc.* 44
------------
1,403
------------
ENVIRONMENTAL CONTROL - 0.5%
5,800 Calgon Carbon Corp. 40
1,600 Casella Waste Systems, Inc.* 27
8,800 Catalytica, Inc.* 132
2,400 IMCO Recycling, Inc. 36
2,600 Ionics, Inc.* 84
3,800 IT Group, Inc.* 36
500 Mine Safety Appliances Co. 31
2,300 Stericycle, Inc.* 34
4,600 Syntroleum Corp.* 32
5,593 Tetra Tech, Inc.* 93
350 Thermo Ecotek Corp.* 3
2,200 U.S. Liquids, Inc.* 15
2,200 Waste Connections, Inc.* 45
500 Waste Industries, Inc.* 7
------------
615
------------
FOOD - 1.8%
3,000 American Italian Pasta Co.* 86
2,900 Aurora Foods, Inc.* 46
7,100 Chiquita Brands International 42
6,100 Corn Products International Inc. 186
8,500 Del Monte Foods Co.* 120
2,300 Dreyer's Grand Ice Cream, Inc. 40
7,000 Earthgrains Co. 155
6,300 Fleming Companies, Inc. 62
4,900 Grand Union Co.* 67
2,800 Great Atlantic & Pacific Tea Co., Inc. 85
2,300 Hain Food Group, Inc.* 57
5,200 Imperial Sugar Co. 32
1,600 Ingles Markets, Inc. 21
4,000 International Home Foods, Inc.* 70
2,800 International Multifoods Corp. 64
1,000 J & J Snack Foods Corp.* 20
4,000 Lance, Inc. 52
2,400 Michael Foods, Inc. 63
1,950 Performance Food Group Co.* 50
900 Pilgrims Pride Corp. 5
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
FOOD - 1.8% (CONT'D.)
1,800 Pilgrims Pride Corp. $ 16
4,700 Ralcorp Holdings Inc.* 83
1,200 Riviana Foods, Inc. 23
5,000 Ruddick Corp. 79
1,000 Sanderson Farms, Inc. 10
100 Seaboard Corp. 22
7,000 Smithfield Foods, Inc.* 187
4,200 Smucker (J.M.) Co. 89
5,500 Suiza Foods Corp.* 206
72 Supervalu, Inc. 2
1,500 United Natural Foods, Inc.* 13
7,700 Universal Foods Corp. 177
4,700 Vlasic Foods International* 33
4,300 Whole Foods Market, Inc.* 141
1,800 Wild Oats Markets, Inc.* 71
2,100 Worthington Foods, Inc. 30
2,300 Zapata Corp. 11
------------
2,516
------------
FOOD SERVICE - 0.0%
2,000 Morrison Management Specialist 45
------------
FOREST PRODUCTS/PAPER - 0.5%
4,200 Buckeye Technologies, Inc.* 66
4,100 Caraustar Industries, Inc. 105
3,500 Chesapeake Corp. 106
2,100 Deltic Timber Corp. 48
4,200 Glatfelter (P.H.) Co. 69
4,300 Potlatch Corp. 177
2,040 Rock-Tenn Co. 29
2,500 Schweitzer-Mauduit International 32
8,542 Wausau-Mosinee Paper Corp. 104
------------
736
------------
GAS - 1.8%
9,300 AGL Resources, Inc. 151
5,122 Atmos Energy Corp. 124
1,800 Cascade Natural Gas Corp. 32
1,700 Connecticut Energy Corp. 66
1,400 CTG Resources, Inc. 50
4,349 Eastern Enterprises 202
4,400 Energen Corp. 89
4,933 Indiana Energy, Inc. 99
3,000 Laclede Gas Co. 68
2,900 New Jersey Resources 116
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
GAS - 1.8% (CONT'D.)
4,150 Northwest Natural Gas Co. $ 107
2,100 NUI Corp. 52
5,200 ONEOK, Inc. 158
1,800 Penn Enterprises, Inc. 58
5,100 Piedmont Natural Gas Co. 155
3,400 Public Service Co. of North Carolina, Inc. 105
1,313 South Jersey Industries 35
5,000 Southwest Gas Corp. 135
4,200 Southwestern Energy Co. 38
2,975 SEMCO Energy, Inc. 41
3,150 Southern Union Co. 60
4,386 UGI Corp. 102
7,600 Washington Gas Light Co. 206
6,104 WICOR, Inc. 177
1,750 Yankee Energy Systems, Inc. 75
------------
2,501
------------
HAND/MACHINE TOOLS - 0.6%
6,377 Applied Power, Inc. 194
5,553 Baldor Electric Co. 105
700 Franklin Electric Co. Inc. 46
4,600 Kennametal, Inc. 119
6,200 Lincoln Electric Holdings, Inc. 129
6,100 Milacron, Inc. 108
3,500 Regal Beloit 73
1,100 Starrett (L.S.) Co. Class A 27
1,100 Starrett (L.S.) Co. Class B 32
------------
833
------------
HEALTH CARE - 3.2%
3,400 Acuson Corp.* 43
2,100 Alaris Medical, Inc.* 6
3,700 Alterra Healthcare Corp.* 33
2,900 American Retirement Corp.* 28
8,500 Apria Healthcare Group, Inc.* 142
1,900 Arrow International, Inc. 49
3,200 Assisted Living Concepts, Inc.* 9
15,400 Beverly Enterprises, Inc.* 65
1,800 Capital Senior Living Corp.* 14
2,100 Cardiothoracic Systems, Inc.* 35
1,700 CareMatrix Corp.* 9
1,100 Closure Medical Corp.* 15
3,900 Columbia Laboratories, Inc.* 29
2,550 Conmed Corp.* 62
2,300 Cooper Companies, Inc. 71
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
SMALL CAP INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 99.5% (CONT'D.)
HEALTH CARE - 3.2% (CONT'D.)
9,800 Covance, Inc.* $ 95
9,600 Coventry Health Care, Inc.* 91
2,900 Cyberonics* 52
2,900 Cytyc Corp.* 112
2,000 Datascope Corp.* 70
1,800 Diagnostic Products Corp. 48
3,000 Eclipse Surgical Technologies, Inc.* 49
1,600 Gliatech, Inc.* 27
4,400 Haemonetics Corp.* 87
3,200 Hanger Orthopedic Group, Inc.* 46
6,400 Idexx Laboratories, Inc.* 110
1,600 Igen International, Inc.* 40
1,400 Impath, Inc.* 41
9,000 Integrated Health Services* 14
3,912 Invacare Corp. 77
10,900 Laboratory Corp. of America Holdings* 30
3,600 Laser Vision Centers, Inc.* 51
2,600 Lasersight, Inc.* 35
4,100 LCA-Vision, Inc.* 22
5,100 LifePoint Hospitals, Inc.* 44
5,400 Magellan Health Services* 39
6,200 Matria Healthcare, Inc.* 36
2,400 Maxxim Medical, Inc.* 57
3,400 Mentor Corp. 97
7,600 Mid-Atlantic Medical Services, Inc.* 68
2,400 Novoste Corp.* 43
4,900 Oakley, Inc.* 30
2,600 Ocular Sciences, Inc.* 50
2,100 OEC Medical Systems, Inc.* 74
2,300 Osteotech, Inc.* 31
1,200 Perclose, Inc.* 56
2,000 ProvInc.e Healthcare Co.* 23
11,650 PSS World Medical, Inc.* 104
4,700 Quest Diagnostics, Inc.* 122
11,800 Quorum Health Group, Inc.* 83
7,225 Renal Care Group, Inc.* 158
2,550 ResCare, Inc.* 43
2,400 Resmed, Inc.* 79
5,361 Respironics, Inc.* 44
1,700 Sabratek Corp.* 5
7,700 Safeskin Corp.* 63
4,000 Henry Schein, Inc.* 57
4,350 Sierra Health Services* 44
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
HEALTH CARE - 3.2% (CONT'D.)
4,100 Sola International, Inc.* $ 64
11,000 Steris Corp.* 151
7,200 Summit Technology, Inc.* 132
3,000 Sunrise Assisted Living, Inc.* 80
3,800 Sunrise Medical, Inc.* 23
7,400 Sunrise Technologies International* 35
3,300 Techne Corp.* 104
300 Thermo Bioanalysis Corp.* 6
2,700 Thermo Cardiosystems, Inc.* 19
12,300 Total Renal Care Holdings* 91
1,500 Trex Medical Corp.* 6
4,900 Triad Hospitals, Inc.* 50
6,900 Unilab Corp.* 39
5,000 Varian Medical Systems, Inc. 109
2,300 Ventana Medical Systems* 39
1,000 Vital Signs, Inc. 20
2,800 Wesley Jessen Visioncare* 87
2,076 West Pharmaceutical Services, Inc. 79
1,950 Xomed Surgical Products, Inc.* 111
------------
4,402
------------
HOLDING COMPANIES - DIVERSIFIED - 0.1%
2,901 Triarc Companies* 62
7,000 Walter Industries, Inc. 94
------------
156
------------
HOME BUILDERS - 1.1%
6,708 Champion Enterprises, Inc.* 60
2,800 Coachmen Industries, Inc. 43
1,200 Crossmann Communities, Inc.* 20
8,285 D.R. Horton, Inc. 107
5,500 Fleetwood Enterprises 111
7,800 Kaufman & Broad Home Corp. 161
7,700 Lennar Corp. 123
3,700 MDC Holdings, Inc. 60
2,800 Monaco Coach Corp.* 68
1,700 NVR, Inc.* 86
1,450 National RV Holdings, Inc.* 29
8,000 Oakwood Homes 36
3,212 Palm Harbor Homes, Inc.* 44
5,300 Pulte Corp. 115
2,500 Ryland Group, Inc. 57
1,500 Skyline Corp. 39
4,100 Standard-Pacific Corp. 42
1,099 Thor Industries, Inc. 28
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
HOME BUILDERS - 1.1% (CONT'D.)
3,400 Toll Brothers, Inc.* $ 65
2,051 U. S. Home Corp.* 57
2,500 Webb (Del E.) Corp. 55
2,400 Winnebago Industries 57
------------
1,463
------------
HOME FURNISHINGS - 0.9%
800 American Woodmark Corp. 22
2,112 Bassett Furniture, Industries 40
1,550 Bush Industries 20
6,700 Ethan Allen Interiors, Inc. 213
5,000 Fedders Corp. 30
8,000 Furniture Brands International* 157
2,715 Harman International 114
5,200 Kimball International 100
8,600 La-Z-Boy, Inc. 164
2,700 O'Sullivan Industries Holdings, Inc.* 40
1,100 Parkervision, Inc.* 27
3,500 Polycom, Inc.* 167
1,400 Salton, Inc.* 42
3,200 Select Comfort Corp.* 22
14,200 Sunbeam Corp. 81
3,753 Windmere-Durable Holdings, Inc.* 45
------------
1,284
------------
HOUSEHOLD PRODUCTS/WARES - 1.0%
2,537 American Business Products 40
3,400 Central Garden & Pet Co.* 26
6,400 Church & Dwight, Inc. 160
1,000 CSS Industries, Inc.* 23
2,300 Fossil, Inc.* 62
5,100 Harland (John H.) Co. 99
5,600 Jostens, Inc. 107
2,100 New England Business Services, Inc. 60
12,700 Pennzoil-Quaker State Co. 160
4,800 Playtex Products, Inc.* 71
1,700 Russ Berrie & Co., Inc. 36
3,000 Scotts Co. (The)* 104
2,100 Standard Register Co. 49
9,400 Tupperware Corp. 190
6,400 Wallace Computer Services, Inc. 130
------------
1,317
------------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
HOUSEWARES - 0.2%
2,300 Enesco Group, Inc. $ 35
2,700 Libbey, Inc. 80
8,671 Metromedia International Group * 36
1,200 Mikasa, Inc. 14
1,200 National Presto Industries, Inc. 46
2,270 Oneida Ltd. 54
1,900 Toro Co. 71
------------
336
------------
INSURANCE - 3.8%
2,000 Acceptance Insurance Co.* 25
6,600 Alfa Corp. 107
800 Alleghany Corp.* 142
2,632 American Heritage Life Investment Corp. 84
1,360 American Annuity Group, Inc. 29
2,520 Amerus Life Holdings, Inc. 53
2,900 Argonaut Group, Inc. 73
4,100 ARM Financial Group, Inc. 0
2,200 Baldwin & Lyons, Inc. 45
2,850 W.R. Berkley Corp. 66
2,100 Blanch (EW) Holdings, Inc. 137
1,750 Brown & Brown, Inc. 58
3,800 Capital Re Corp. 38
2,300 Chicago Title Corp. 92
2,800 CNA Surety Corp. 37
4,200 Commerce Group, Inc. 97
2,476 Delphi Financial Group* 75
4,500 Enhance Financial Services Group 80
800 Farm Family Holdings, Inc.* 32
2,200 FBL Financial Group, Inc. 45
4,251 Fidelity National Financial, Inc. 65
9,094 First American Financial Corp. 122
3,100 Foremost Corp. of America 74
1,600 FPIC Insurance Group, Inc.* 24
5,025 Frontier Insurance Group, Inc. 44
3,000 Gallagher, Arthur J. & Co. 160
1,500 Guarantee Life Companies, Inc. 46
2,200 Harleysville Group, Inc. 31
6,500 HCC Insurance Holdings, Inc. 109
2,100 Hilb, Rogal & Hamilton Co. 53
6,700 Horace Mann Educators 173
4,700 HSB Group, Inc. 165
1,200 Kansas City Life Insurance Co. 44
2,400 Landamerica Financial Group, Inc. 47
6,800 Leucadia National Corp. 143
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
SMALL CAP INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 99.5% (CONT'D.)
INSURANCE - 3.8% (CONT'D.)
2,600 Liberty Corp $ 121
2,200 Liberty Financial Co. 48
3,400 Life USA Holding, Inc. 70
700 Markel Corp.* 127
3,797 Medical Assurance, Inc.* 95
700 Midland Co. 15
3,100 MMI Cos., Inc. 34
7,700 Mony Group, Inc. 222
300 National Western Life Insurance* 25
10,200 Ohio Casualty Corp. 172
4,500 Orion Capital Corp. 213
1,000 Penn Treaty American Corp.* 21
1,400 Philadelphia Consolidated Holdings* 19
1,700 Pico Holdings, Inc.* 36
2,900 PMA Capital Corp. 58
3,900 Presidential Life Corp. 67
1,400 Professionals Group, Inc.* 35
1,500 Provident American Corp.* 23
1,992 PXRE Corp.* 29
5,886 Radian Group, Inc. 253
10,600 Reliance Group Holdings 47
1,500 Risk Capital Holdings, Inc.* 23
1,363 RLI Corp. 45
2,000 SCPIE Holdings, Inc. 63
4,600 Selective Insurance Group 87
2,500 State Auto Financial Corp. 26
2,400 Stancorp Financial Group 54
1,900 Stewart Information Services 35
3,000 Superior National Insurance Group* 42
1,750 Trenwick Group, Inc. 29
2,200 Triad Guaranty, Inc.* 37
6,200 UICI* 158
2,900 Unistar Financial Services Corp* 80
1,162 United Fire & Casualty Co. 27
700 White Mountains Insurance Group 95
1,600 Zenith National Insurance Co. 34
------------
5,180
------------
INVESTMENT COMPANIES - 0.2%
9,600 Allied Capital Corp Funds 215
1,900 Medallion Financial Corp. 38
600 PEC Israel Economic Corp.* 21
------------
274
------------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
IRON/STEEL - 0.7%
16,900 Armco, Inc.* $118
21,400 Bethlehem Steel Corp.* 158
3,000 Carpenter Technology 74
1,800 Citation Corp.* 31
1,800 Cleveland-Cliffs, Inc. 56
1,300 Gibraltar Steel Corp. 27
3,700 Lone Star Technologies* 74
16,400 LTV Corp. 89
3,500 National Steel Corp. 24
4,200 Oregon Steel Mills, Inc. 47
3,150 Reliance Steel & Aluminum 66
1,500 Rouge Industries, Inc. 11
2,232 Ryerson Tull, Inc. 52
7,000 Steel Dynamics, Inc.* 110
------------
937
------------
LEISURE TIME - 0.5%
1,500 American Classic Voyager* 34
10,200 AMF Bowling, Inc.* 42
3,125 Arctic Cat, Inc. 30
3,900 Bally Total Fitness Holding* 119
12,400 Callaway Golf Co. 151
1,700 Coleman Co., Inc.* 16
1,500 Direct Focus, Inc.* 28
3,550 Family Golf Centers, Inc.* 9
2,000 Pegasus Systems, Inc.* 75
4,100 Polaris Industries, Inc. 142
3,800 WMS Industries, Inc.* 44
------------
690
------------
LODGING - 0.4%
4,700 Boca Resorts, Inc.* 49
9,000 Choice Hotels International, Inc.* 154
3,100 Crestline Capital Corp.* 64
11,700 Extended Stay America, Inc.* 105
4,000 Lodgian, Inc.* 15
3,825 Marcus Corp. 46
8,600 Prime Hospitality Corp.* 69
2,300 U.S. Franchise Systems, Inc.* 40
22,600 Wyndham International, Inc.* 59
------------
601
------------
MACHINERY - CONSTRUCTION & MINING - 0.4%
2,400 Astec Industries, Inc.* 58
3,200 CMI Corp. 22
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
MACHINERY - CONSTRUCTION & MINING -
0.4% (CONT'D.)
2,250 Commercial Intertech Corp. $ 27
3,800 Global Industries Technologies * 46
7,000 Harnischfeger Industries, Inc. 7
7,200 JLG Industries, Inc. 109
4,250 Manitowoc Co. 145
3,700 Terex Corp.* 117
------------
531
------------
MACHINERY-DIVERSIFIED - 1.9%
1,600 Advanced Energy Industries* 49
9,800 Agco Corp. 127
3,017 Albany International Corp.* 46
3,635 Applied Industrial Technology, Inc. 65
1,900 Asyst Technologies, Inc.* 63
1,900 Brooks Automation, Inc.* 33
2,775 Chart Industries, Inc. 14
5,500 Cognex Corp.* 166
2,000 Columbus Mckinnon Corp. 35
1,400 Detroit Diesel Corp. 26
2,900 Esterline Technologies Corp.* 46
6,089 Flowserve Corp. 101
4,000 FSI International, Inc.* 33
2,150 Gardner Denver, Inc.* 33
3,300 Gerber Scientific, Inc. 74
2,355 Graco, Inc. 77
3,700 Helix Technology Corp. 123
4,875 Idex Corp. 138
6,000 Imation Corp.* 186
3,900 Kulicke & Soffa Industries* 95
2,055 Lindsay Manufacturing Co. 40
4,400 Magnetek, Inc.* 39
4,500 Motivepower Industries, Inc.* 49
1,100 NACCO Industries, Inc. 77
2,300 Nordson Corp. 113
4,500 Presstek, Inc.* 33
2,900 PRI Automation, Inc.* 105
1,300 Robbins & Myers, Inc. 20
2,000 Sauer, Inc. 24
2,000 Specialty Equipment Co., Inc.* 50
4,085 SpeedFam-IPEC, Inc.* 49
4,700 Stewart & Stevenson Services 62
1,500 Tennant Co. 51
1,000 Thermo Fibertek, Inc.* 6
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
MACHINERY-DIVERSIFIED - 1.9% (CONT'D.)
2,623 Thomas Industries, Inc. $ 49
6,900 Unova, Inc.* 92
4,000 Zebra Technologies Corp.* 182
------------
2,571
------------
MEDIA - 2.0%
1,800 Ackerley Group, Inc. 22
4,900 Actv, Inc.* 68
4,450 Banta Corp. 99
2,900 Big Flower Holdings, Inc.* 82
6,000 Bowne & Co., Inc. 72
2,300 CD Radio, Inc.* 59
3,100 Citadel Communications Corp.* 106
2,300 Consolidated Graphics, Inc.* 97
2,700 Cumulus Media, Inc.* 88
2,600 Emmis Communications Corp.* 172
3,300 Entercom Communications Corp.* 119
1,700 Gray Communication System 29
500 IDG Books Worldwide, Inc.* 8
800 Information Holdings, Inc.* 16
7,600 Journal Register Co.* 104
7,300 Lee Enterprises 200
6,400 Mail-Well, Inc.* 89
2,300 Merrill Corp. 46
1,800 Network Event Theater, Inc.* 40
1,700 On Command Corp.* 32
5,000 Paxson Communications Corp.* 61
1,800 Pegasus Communications Corp.* 81
3,200 Playboy Enterprises 85
1,200 Pulitzer, Inc. 55
1,100 Radio One, Inc.* 46
1,000 Saga Communications, Inc.* 23
2,200 Scholastic Corp.* 110
4,200 SInclair Broadcast Group, Inc.* 38
2,200 Source Media, Inc.* 20
600 United Television, Inc. 68
300 Value Line, Inc. 10
5,400 Westwood One, Inc.* 244
6,200 World Color Press, Inc.* 231
1,500 Young Broadcasting, Inc.* 79
4,400 Ziff-Davis, Inc. * 71
------------
2,770
------------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
SMALL CAP INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 99.5% (CONT'D.)
METAL FABRICATE/HARDWARE - 0.9%
1,100 Alltrista Corp.* $ 29
1,862 Castle (A.M.) & Co. 24
2,110 Commercial Metals Co. 61
3,800 Intermet Corp. 32
5,200 Kaydon Corp. 129
1,000 Lawson Products 22
2,600 Maverick Tube Corp.* 43
4,900 Metals USA, Inc.* 50
5,900 Mueller Industries, Inc.* 175
4,000 Precision Castparts Corp. 122
2,300 Quanex Corp. 59
8,300 Timken Co. 134
3,000 Valmont Industries 51
2,200 Wolverine Tube, Inc.* 34
12,300 Worthington Industries 209
3,600 Wyman-Gordon Co.* 67
------------
1,241
------------
METALS-DIVERSIFIED - 0.5%
6,500 ASARCO, Inc. 174
2,700 Brush Wellman, Inc. 40
4,900 Kaiser Aluminum Corp.* 41
700 Maxxam, Inc.* 36
2,600 RTI International Metals, Inc.* 26
4,200 Southern Peru Copper Corp. 71
5,850 Stillwater Mining Co.* 157
3,000 Titanium Metals Corp. 27
16,400 USEC, Inc. 168
------------
740
------------
MINING - 0.3%
4,114 AMCOL International Corp. 61
21,300 Battle Mountain Gold Co. 69
13,900 Cyprus Amax Minerals Co. 273
------------
403
------------
MISCELLANEOUS MANUFACTURING - 2.0%
3,100 ABC-NACO Inc.* 44
2,400 ACX Technologies, Inc.* 23
5,200 Aptargroup, Inc. 139
2,832 Barnes Group, Inc. 57
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
MISCELLANEOUS MANUFACTURING - 2.0% (CONT'D.)
160 Blount International, Inc.* $ 2
3,912 Clarcor, Inc 66
2,650 Cuno, Inc.* 53
3,800 Dexter Corp. 142
6,700 Donaldson Co., Inc. 155
7,400 Federal Signal Corp. 147
3,076 Furon Co. 77
5,003 Griffon Corp.* 40
6,700 Harsco Corp. 185
2,507 Hexcel Corp.* 15
2,726 Justin Industries 39
2,700 Lydall, Inc.* 28
8,000 Mark IV Industries, Inc. 158
6,000 Mascotech, Inc. 97
2,400 Matthews International Corp. 72
2,536 Myers Industries, Inc. 45
400 NCH Corp. 18
6,700 Olin Corp. 91
7,300 Polaroid Corp. 190
3,400 Polymer Group, Inc.* 50
4,900 Roper Industries, Inc. 187
2,500 Scott Technologies, Inc.* 49
3,400 Smith (A.O.) Corp. 103
2,034 SPS Technologies, Inc.* 77
1,900 Standex International Corp. 51
3,300 Sturm Ruger & Co., Inc. 30
3,250 Tredegar Corp. 69
6,600 Trinity Industries 204
4,100 Westinghouse Air Brake Co. 75
------------
2,778
------------
OFFICE FURNISHINGS - 0.1%
400 Compx International, Inc.* 8
6,900 Interface, Inc. 35
2,200 Knoll, Inc.* 59
1,001 Virco Manufacturing 16
------------
118
------------
OFFICE/BUSINESS EQUIPMENT - 0.0%
1,000 General Binding Corp. 20
1,100 Global Imaging Systems, Inc.* 16
------------
36
------------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
OIL & GAS PRODUCERS - 2.2%
1,700 Atwood Oceanics* $ 52
4,653 Barrett Resources Corp.* 172
2,300 Basin Exploration, Inc.* 55
1,600 Belco Oil & Gas Corp.* 11
3,000 Berry Petroleum 41
4,500 Brown (Tom), Inc.* 66
3,800 Cabot Oil & Gas Corp. 66
12,518 Chesapeake Energy Corp. 49
7,575 Cross Timbers Oil Co. 102
7,300 EEX Corp.* 21
2,000 Evergreen Resources, Inc.* 48
4,500 Forest Oil Corp.* 77
27,000 Grey Wolf Inc.* 81
13 Gulfport Energy Corp.* -
22,900 Harken Energy Corp.* 26
8,100 Helmerich & Payne 205
2,800 HS Resources, Inc.* 46
1,400 Houston Exploration Co.* 30
13,900 Key Energy Group* 69
3,252 Louis Dreyfus Natural Gas* 70
9,400 Marine Drilling Co. Inc.* 149
2,200 McMoRan Exploration Co.* 47
4,512 Meridian Resource Corp.* 21
3,400 Mitchell Energy & Development 83
6,000 Newfield Exploration Co.* 198
3,000 Nuevo Energy Co.* 52
10,700 Parker Drilling Co.* 47
5,300 Patterson Energy, Inc.* 80
16,400 Pioneer Natural Resources Co. 174
2,600 Plains Resources, Inc.* 46
6,600 Pogo Producing Co. 137
8,400 Pride International, Inc.* 119
1,800 St. Mary Land & Exploration Co. 47
2,300 Stone Energy Corp.* 117
2,490 Swift Energy Co.* 31
5,400 Tesoro Petroleum Corp.* 89
8,100 Valero Energy Corp. 156
7,300 Vintage Petroleum, Inc. 99
2,270 WD-40 Co. 53
------------
3,032
------------
OIL & GAS SERVICES - 0.9%
900 Cal Dive International, Inc.* 31
800 Carbo Ceramics, Inc. 22
1,500 Dril-Quip, Inc.* 38
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
OIL & GAS SERVICES - 0.9% (CONT'D.)
2,100 Friede Goldman International, Inc.* $ 21
9,900 Global Industries Ltd.* 80
4,700 Hanover Compressor Co.* 150
7,600 Input/Output, Inc.* 50
2,800 IRI International Corp.* 13
7,500 National-Oilwell, Inc.* 123
11,280 Newpark Resources* 87
3,400 Oceaneering International, Inc.* 57
3,100 Pool Energy Services Co.* 76
2,294 RPC, Inc. 16
2,000 Seacor Smit, Inc.* 102
4,100 Seitel, Inc.* 40
4,900 Tuboscope, Inc.* 61
2,200 UTI Energy Corp.* 43
10,000 Varco International, Inc.* 122
3,800 Veritas DGC, Inc.* 73
------------
1,205
------------
PACKAGING & CONTAINERS - 0.3%
500 AEP Industries, Inc.* 18
4,500 Earthshell Corp.* 17
8,800 Gaylord Container CP* 63
2,200 Greif Brothers Corp.* 62
3,500 Ivex Packaging Corp.* 35
500 Liqui-Box Corp. 27
8,500 Longview Fibre Co. 106
3,550 Shorewood Packaging Corp.* 48
1,800 Silgan Holdings, Inc.* 36
1,500 U.S. Can Corp.* 31
------------
443
------------
PHARMACEUTICALS - 3.2%
1,500 Abgenix, Inc.* 59
500 Accredo Health, Inc.* 16
1,500 Advance Paradigm, Inc.* 82
2,000 Algos Pharmaceuticals Corp.* 17
3,800 Alkermes, Inc.* 109
3,150 Alpharma, Inc. 111
7,900 Amerisource Health Corp.* 187
2,000 Anesta Corp.* 18
2,125 Barr Laboratories, Inc.* 67
4,054 Bindley Western Industries 58
2,400 Biomatrix, Inc.* 54
2,327 Block Drug Co. 84
3,600 Carter-Wallace, Inc. 64
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
SMALL CAP INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 99.5% (CONT'D.)
PHARMACEUTICALS - 3.2% (CONT'D.)
2,800 Celgene Corp.* $ 76
3,200 Cell Pathways, Inc.* 31
4,500 Cephalon, Inc.* 81
2,300 Chirex, Inc.* 59
3,300 Copley Pharmaceutical, Inc.* 36
3,700 COR Therapeutics, Inc.* 70
2,500 Corixa Corp.* 34
2,800 Coulter Pharmaceutical, Inc.* 39
3,400 Cygnus, Inc.* 38
7,200 Dura Pharmaceuticals, Inc.* 100
3,400 Duramed Pharmaceuticals, Inc.* 26
2,200 Geltex Pharmaceuticals, Inc.* 24
6,593 Gilead Sciences, Inc.* 423
3,200 Guilford Pharmaceuticals, Inc.* 49
4,200 Hemispherx Biopharmaceutical, Inc.* 29
2,133 Herbalife International, Inc. 33
4,100 Imclone Systems* 136
4,700 Isis Pharmaceuticals, Inc.* 53
5,950 Jones Pharmaceuticals, Inc. 196
2,200 King Pharmaceuticals, Inc.* 77
1,900 KV Pharmaceutical Co.* 35
7,251 Ligand Pharmaceuticals, Inc.* 55
3,600 MacroChem Corp.* 22
1,000 Mannatech, Inc.* 7
1,700 Medco Research, Inc.* 42
4,650 Medicis Pharmaceutical* 133
2,466 Natures Sunshine Products, Inc. 23
9,200 NBTY, Inc.* 70
2,300 NCS Healthcare, Inc.* 6
2,000 Neurogen Corp.* 33
2,700 PathoGenesis Corp.* 42
3,975 Patterson Dental Co.* 197
10,300 Perrigo Co.* 81
2,900 Pharmaceutical Resources, Inc.* 15
2,000 Pharmacyclics, Inc.* 82
2,260 Priority Healthcare Corp. Corp., Class A* 70
600 Priority Healthcare Corp. Corp., Class B* 19
5,500 Rexall Sundown, Inc.* 68
5,200 Roberts Pharmaceutical Corp.* 157
2,500 Sangstat Medical Corp.* 53
900 Schein Pharmaceutical, Inc.* 8
13,100 SICOR, Inc.* 52
2,600 SuperGen, Inc.* 60
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
PHARMACEUTICALS - 3.2% (CONT'D.)
1,600 Syncor International Corp.* $ 60
4,400 Theragenics Corp.* 56
4,100 Triangle Pharmaceuticals, Inc.* 79
4,100 Twinlab Corp.* 36
4,410 US Bioscience, Inc.* 63
4,200 Vertex Pharmaceuticals, Inc.* 130
3,400 Veterinary Centers of America* 39
------------
4,329
------------
PIPELINES - 0.2%
5,500 Equitable Resources, Inc. 208
4,400 Transmontaigne, Inc.* 66
2,500 Western Gas Resources, Inc. 47
------------
321
------------
REAL ESTATE - 0.4%
2,200 Castle & Cooke, Inc.* 34
3,500 CB Richard Ellis, Inc.* 53
2,600 Forest City Enterprises, Class A* 58
1,355 Getty Realty Corp. 18
3,166 Insignia Financial Group, Inc.* 28
5,100 Jones Lang LaSalle, Inc.* 82
4,100 LNR Property Corp. 84
6,200 Security Capital Group, Inc.* 91
4,000 Trammell Crow Co.* 53
3,500 Wellsford Real Properties, Inc.* 33
------------
534
------------
REAL ESTATE INVESTMENT TRUSTS - 5.7%
600 Alexander's, Inc.* 43
1,800 Alexandria Real Estate Equities, Inc. 53
3,800 American Health Properties 76
2,800 American Industrial Properties 37
2,400 Amli Residential Properties 50
2,800 Associated Estates Realty 26
3,600 Bedford Property Investors 61
6,200 Berkshire Realty Co. 74
2,900 Boykin Lodging Co. 38
3,988 Bradley Real Estate, Inc. 73
5,800 Brandywine Realty Trust 94
7,300 BRE Properties 175
5,200 Burnham Pacific Property, Inc. 55
3,200 Cabot Industrial Trust 62
6,816 Camden Property Trust 183
3,500 Capital Automotive 43
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS - 5.7% (CONT'D.)
10,325 Capstead Mortgage Corp. $ 41
3,700 CBL & Associates Properties 90
3,600 Center Trust, Inc. 40
3,300 Centerpoint Properties Corp. 109
3,500 Chateau Communities, Inc. 91
2,600 Chelsea GCA Realty, Inc. 82
4,300 Colonial Properties Trust 115
5,100 Commercial NET Lease Realty 54
6,400 Cornerstone Realty Income Trust 58
4,000 Cousins Properties, Inc. 136
3,900 Crown American Realty 25
10,100 Developers Diversified Realty 141
2,700 Eastgroup Properties 49
2,300 Entertainment Properties Trust 34
6,100 Equity Inns, Inc. 52
2,700 Essex Property Trust, Inc. 94
6,600 Federal Realty Investors Trust 138
6,200 First Industrial Realty Trust 153
1,300 First Washington Realty Trust 27
4,300 Gables Residential Trust 103
5,100 Glenborough Realty Trust, Inc. 84
3,900 Glimcher Realty Trust 57
1,300 Golf Trust of America, Inc. 26
2,800 Great Lakes REIT, Inc. 42
5,200 Health Care Property Investors 136
4,700 Health Care REIT, Inc. 94
6,473 Healthcare Realty Trust, Inc. 121
3,000 Home Properties of NY, Inc. 80
6,900 Hospitality Properties Trust 152
4,400 Imperial Credit Commercial Mortgage 48
12,300 IndyMac Mortgage Holdings, Inc. 184
5,700 Innkeepers USA Trust 47
5,600 IRT Property Co. 50
5,400 JDN Realty Corp. 111
1,800 JP Realty, Inc. 31
4,600 Kilroy Realty Corp. 97
4,400 Koger Equity, Inc. 70
5,200 Konover Property Trust 33
2,000 LaSalle Hotel Properties 26
2,900 Lexington Corporate Properties 32
4,600 LTC Properties, Inc. 49
5,000 Macerich Co. (The) 116
3,600 Manufactured Home Communities 84
7,846 Meristar Hospitality Corp. 120
2,300 MGI Properties, Inc. 21
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS - 5.7% (CONT'D.)
3,100 Mid-America Apartment Communities $ 67
2,500 Mills Corp. 45
7,600 Nationwide Health Properties, Inc. 126
2,100 National Golf Properties, Inc. 47
4,000 National Health Investors 66
3,240 Omega Healthcare Investors 68
2,000 Pennsylvania Real Estate Investors 38
2,900 Pacific Gulf Properties, Inc. 58
1,500 PAN Pacific Retail Properties, Inc. 26
1,700 Parkway Properties, Inc. 55
6,200 Prentiss Properties Trust 138
1,500 Prime Group Realty Trust 22
7,057 Prime Retail, Inc. 52
3,900 PS Business Parks, Inc. 101
6,600 Reckson Associates Realty 137
1,700 Redwood Trust, Inc. 22
5,800 Regency Realty Corp. 122
4,200 RFS Hotel Investors, Inc. 48
4,400 Realty Inc.ome Corp. 102
1,800 Saul Centers, Inc. 28
4,800 Shurgard Storage Centers, Inc. 119
3,600 SL Green Realty Corp. 74
2,900 Smith (Charles E.) Residential 99
2,100 Sovran Self Storage, Inc. 48
4,400 Storage USA, Inc. 121
3,700 Summit Properties, Inc. 74
2,800 Sun Communities, Inc. 93
6,200 Sunstone Hotel Investors, Inc. 54
900 Tanger Factory Outlet Centers 21
5,700 Taubman Centers, Inc. 66
3,700 Thornburg Mortgage Asset Corp. 33
2,600 Town & Country Trust 46
4,100 Trinet Corporate Realty Trust 98
17,000 United Dominion Realty Trust 190
1,700 Urban Shopping Centers, Inc. 49
2,400 US Restaurants Properties, Inc. 46
8,900 Ventas, Inc. 42
4,100 Walden Residential Properties, Inc. 89
5,800 Washington REIT 91
4,400 Weingarten Realty Investors 164
2,900 Western Properties Trust 32
4,700 Westfield America, Inc. 65
------------
7,768
------------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
SMALL CAP INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 99.5% (CONT'D.)
RETAIL - 5.2%
23,400 7-Eleven, Inc.* $ 46
1,450 99 Cents Only Stores* 52
5,600 Advantica Restaurant Group, Inc.* 17
4,700 Ames Dept Stores, Inc.* 150
3,000 Ann Taylor Stores Corp.* 123
4,300 Applebees International, Inc. 145
3,393 Avado Brands, Inc. 19
4,100 barnesandnoble.com, Inc.* 79
400 Bebe Stores, Inc.* 10
3,400 Beyond.com Corp. 42
6,500 Bob Evans Farms, Inc. 132
2,100 Boise Cascade Office Product* 23
6,100 Bombay Co., Inc. (The)* 31
12,800 Borders Group, Inc.* 188
3,000 Brown Shoe Co., Inc. 55
1,400 Buckle, Inc.* 24
7,101 Buffets, Inc.* 83
2,960 Burlington Coat Factory Warehouse 58
8,600 Casey's General Stores, Inc. 115
4,300 Cash America Investments, Inc. 41
2,600 Cato Corp. 37
9,600 CBRL Group, Inc. 149
2,592 Cdnow, Inc.* 32
4,460 CEC Entertainment, Inc.* 160
16,100 Charming Shoppes* 83
600 Cheap Tickets, Inc.* 19
2,900 Cheesecake Factory (The)* 80
1,100 Chico's Fashions, Inc.* 30
2,700 Childrens Place* 72
8,700 CKE Restaurant, Inc. 63
500 Coldwater Creek, Inc.* 10
100 Kenneth Cole Productions, Inc.* 4
15,000 CompUSA, Inc.* 92
3,613 Consolidated Products, Inc.* 35
3,000 Copart, Inc.* 55
17,300 Corporate Express, Inc.* 163
2,250 Cost Plus, Inc.* 109
800 Creative Computers, Inc.* 5
3,100 CSK Auto Corp.* 68
2,300 Cyberian Outpost, Inc.* 21
2,000 Dave & Buster's, Inc.* 24
1,400 David's Bridal, Inc.* 10
600 DEB Shops, Inc. 12
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
RETAIL - 5.2% (CONT'D.)
1,200 Delia*s, Inc.* $ 8
1,500 Discount Auto Parts* 24
2,700 Dress Barn, Inc.* 50
2,800 Duane Reade, Inc.* 84
3,400 Egghead.com, Inc.* 24
800 Electronics Boutique Holdings Co,* 21
2,000 Factory 2-U Stores, Inc. 60
500 Fatbrain.com, Inc.* 7
3,000 Finish Line* 26
6,700 Foodmaker, Inc.* 167
3,300 Footstar, Inc.* 116
3,800 Genesco, Inc.* 48
3,200 Goody's Family Clothing, Inc.* 26
2,600 Group 1 Automotive, Inc.* 48
3,400 Guitar Center, Inc.* 32
3,600 Gymboree Corp.* 25
19,500 Hanover Direct, Inc.* 50
3,000 Haverty Furniture 43
9,800 Heilig-Meyers Co. 47
5,200 Hollywood Entertainment Corp.* 78
5,700 Homebase, Inc.* 22
3,300 IHOP Corp.* 67
1,800 IMALL, Inc.* 34
3,300 Insight Enterprises, Inc.* 107
2,000 Intertan, Inc.* 39
2,750 Jo-Ann Stores, Inc.* 34
4,250 Just For Feet, Inc.* 9
4,300 Landry's Seafood Restaurant* 34
2,200 Lands' End, Inc.* 145
1,000 Lithia Motors, Inc.* 23
5,800 Lone Star Steakhouse & Saloon* 45
3,700 Luby's, Inc. 43
4,102 Men's Wearhouse, Inc.* 88
4,200 Michaels Stores, Inc.* 124
5,900 Micro Warehouse, Inc.* 71
1,500 Movado Group, Inc. 34
4,600 MSC Industrial Direct Co.* 42
5,100 Musicland Stores Corp. 45
1,700 NPC International, Inc. 19
2,300 O'Charleys, Inc.* 34
2,700 O'Reilly Automotive, Inc.* 129
18,600 OfficeMax, Inc.* 108
1,300 Onsale, Inc.* 18
1,000 P.F. Chang's China Bistro, Inc.* 22
4,437 Pacific Sunwear of California* 124
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
RETAIL - 5.2% (CONT'D.)
3,625 Papa John's International, Inc.* $ 150
1,600 Party City Corp.* 3
600 PC Connection, Inc.* 9
7,600 Pep Boys-Manny Moe & Jack 113
3,500 Petco Animal Supplies, Inc.* 42
19,200 PETsMART, Inc.* 71
15,800 Pier 1 Imports, Inc. 107
1,800 Rare Hospitality International * 39
4,625 Regis Corp. 89
2,200 Restoration Hardware, Inc.* 16
5,200 Ruby Tuesday, Inc. 101
6,400 Ryan's Family Steak Houses, Inc.* 58
2,200 Sbarro, Inc. 63
2,900 School Specialty, Inc.* 49
1,400 Shoe Carnival, Inc.* 15
3,600 Shop At Home, Inc.* 32
4,400 Shopko Stores, Inc.* 128
950 Smart & Final, Inc. 9
3,075 Sonic Corp.* 94
51 Sound Advice, Inc.* -
2,800 Spiegel, Inc.* 28
4,900 Stein Mart, Inc. 35
6,900 Sunglass Hut International, Inc.* 73
6,000 Systemax, Inc.* 50
1,900 Talbots, Inc. 85
1,100 Tractor Supply Co.* 21
5,350 Trans World Entertainment* 68
900 Tuesday Morning Corp.* 23
900 Tweeter Home Entertainment Group* 34
300 Ubid, Inc.* 8
3,600 United Auto Group, Inc.* 46
2,200 United Retail Group, Inc.* 26
1,600 Urban Outfitters, Inc.* 35
6,300 U.S. Office Products Co.* 22
1,700 Value America, Inc.* 22
2,400 Value City Dept Stores, Inc.* 36
1,400 West Marine, Inc.* 11
1,800 Wet Seal, Inc.* 30
1,500 Whitehall Jewellers, Inc.* 43
------------
7,094
------------
SAVINGS & LOANS - 2.1%
1,800 Alliance Bancorp 35
4,200 Anchor Bancorp Wisconsin, Inc. 68
1,100 Andover Bancorp, Inc. 33
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
SAVINGS & LOANS - 2.1% (CONT'D.)
6,200 BankAtlantic Bancorp, Inc. $ 39
4,700 Bank United Corp. 152
2,300 Brookline Bancorp, Inc. 23
15,000 Capitol Federal Financial 150
3,700 CFS Bancorp, Inc. 39
2,200 Commonwealth Bancorp, Inc. 38
2,200 Dime Community Bancshares 46
3,341 Downey Financial Corp. 67
2,500 First Federal Capital Corp. 39
3,450 FirstFed Financial Corp. 60
2,300 First Financial Holdings, Inc. 40
1,530 First Indiana Corp. 32
7,248 First Sentinel Bancorp, Inc. 57
1,930 First Washington Bancorp, Inc. 34
1,200 Flagstar Bancorp, Inc. 18
1,100 Great Southern Bancorp, Inc. 24
2,212 Harbor Florida Bancshares, Inc. 27
1,400 Harris Financial, Inc. 15
2,900 Hudson River Bancorp 32
12,300 Independence Community Bank 147
1,400 JSB Financial, Inc. 80
2,000 First Liberty Financial Corp. 56
3,500 Local Financial Corp.* 32
3,961 MAF Bancorp, Inc. 79
2,500 Northwest Bancorp, Inc. 22
3,400 Net.B@nk, Inc.* 75
2,300 Niagara Bancorp, Inc. 24
2,300 OceanFirst Financial Corp. 38
5,500 Ocwen Financial Corp.* 37
2,200 PFF Bancorp, Inc. 45
2,837 Queens County Bancorp, Inc. 78
1,400 Reliance Bancorp, Inc. 53
4,100 Richmond County Financial Corp. 77
4,500 Seacoast Financial Services Corp. 45
1,400 St. Francis Capital Corp. 29
6,522 St. Paul Bancorp, Inc. 149
6,700 Staten Island Bancorp, Inc. 126
5,300 Telebanc Financial Corp.* 122
5,600 United Community Financial Corp 77
9,000 Washington Federal, Inc. 209
5,900 Webster Financial Corp. 150
1,581 Westcorp 24
------------
2,842
------------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
SMALL CAP INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 99.5% (CONT'D.)
SEMICONDUCTORS - 3.3%
3,400 Actel Corp.* $ 65
4,100 Alliance Semiconductor Corp.* 44
2,700 Alpha Industries* 152
2,400 American Xtal Technology, Inc.* 51
14,100 Amkor Technology, Inc.* 227
2,800 ATMI, Inc.* 104
4,125 Burr-Brown Corp.* 163
9,900 Cirrus Logic, Inc.* 109
4,000 Cree Research, Inc.* 136
17,200 Cypress Semiconductor Corp.* 370
4,700 Dallas Semiconductor Corp. 251
800 Dupont Photomasks, Inc.* 37
3,300 Electroglas, Inc.* 77
1,500 Emcore Corp.* 21
4,300 ESS Technology* 57
3,500 Etec Systems, Inc.* 132
1,500 Exar Corp.* 56
5,100 General Semiconductor, Inc.* 53
1,000 HI/FN, Inc.* 110
8,500 International Rectifier Corp.* 130
2,000 Kopin Corp.* 55
6,400 Lam Research Corp.* 390
7,400 Lattice Semiconductor Corp.* 220
600 Maker Communications, Inc.* 14
2,700 Marshall Industries* 99
3,300 MEMC Electronics Materials* 45
1,900 MIPS Technologies, Inc.* 60
1,100 MKS Instruments, Inc.* 24
3,500 Photronics, Inc.* 79
4,287 Pioneer Standard Electronics 62
2,100 PLX Technology, Inc.* 51
4,900 Semtech Corp.* 179
5,500 Silicon Valley Group, Inc.* 65
300 Siliconix, Inc.* 14
4,100 Transwitch Corp.* 234
2,000 Triquint Semiconductor, Inc.* 114
3,600 Ultratech Stepper, Inc.* 46
5,300 Unitrode Corp.* 223
5,000 Varian Semiconductor Equipment* 105
900 Watkins-Johnson Co. 30
------------
4,454
------------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
SHIPBUILDING - 0.1%
4,950 Halter Marine Group, Inc.* $ 27
5,300 Newport News Shipbuilding 171
------------
198
------------
SOFTWARE - 7.5%
2,200 24/7 Media, Inc.* 83
3,500 3Dfx Interactive, Inc.* 29
500 About.com, Inc.* 28
6,800 Acclaim Enertainment, Inc.* 52
3,800 Activision, Inc.* 67
2,000 Actuate Corp.* 68
1,400 Advantage Learning Systems, Inc.* 26
2,000 Advent Software, Inc.* 124
900 Allaire Corp.* 50
7,000 American Management Systems* 180
800 Applied Theory Corp.* 10
2,720 Applied Graphics Technologies* 23
2,200 Ardent Software, Inc.* 59
2,600 Ashton Technology Group* 20
3,700 Aspect Development, Inc.* 94
4,200 Aspen Technology, Inc.* 41
1,400 Autobytel.com, Inc.* 16
1,100 Autoweb.com, Inc.* 10
3,700 Avid Technology, Inc.* 49
1,800 AVT Corp.* 55
3,300 Banyan Systems, Inc.* 32
1,850 Barra, Inc.* 39
1,100 Best Software, Inc.* 22
2,700 BindView Development Corp.* 53
1,100 Bottomline Technologies, Inc.* 16
1,600 Brio Technology, Inc.* 36
2,900 Broadvision, Inc.* 386
1,000 CAIS Internet, Inc.* 12
8,300 Cambridge Technology Partners, Inc.* 120
4,000 CCC Information Services Group* 53
4,400 Cerner Corp.* 67
2,400 Choicepoint, Inc.* 162
3,400 Clarify, Inc.* 171
6,600 Concentric Network Corp.* 134
2,200 Concord Communications, Inc.* 87
1,900 Concur Technologies, Inc.* 54
2,500 Cybercash, Inc.* 18
2,600 Datastream Systems, Inc.* 34
3,000 Dendrite International, Inc.* 142
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
SOFTWARE - 7.5% (CONT'D.)
2,500 Documentum, Inc.* $ 54
900 EarthWeb Inc.* 36
4,900 Eclipsys Corp.* 70
3,000 Edify Corp.* 38
2,000 Engineering Animation, Inc.* 32
6,643 Epicor Software Corp.* 38
1,900 Excalibur Technologies Corp.* 16
1,800 Exchange Applications, Inc.* 52
1,708 Fair, Isaac & Co., Inc. 48
700 Fidelity Holdings, Inc.* 12
5,400 FileNET Corp.* 58
1,500 Flashnet Communications, Inc.* 12
500 Flycast Communications* 23
1,500 Genesys Telecomm Labs, Inc.* 69
3,200 Go2net, Inc.* 207
1,600 Great Plains Software, Inc.* 82
6,000 GT Interactive Software Corp.* 17
6,250 Harbinger Corp.* 105
4,000 HNC Software* 159
5,090 Hyperion Solutions Corp.* 112
2,300 IDX Systems Corp.* 42
2,650 IMRglobal Corp.* 22
4,400 Infocure Corp.* 83
1,400 Informatica Corp.* 71
4,700 Information Resources, Inc.* 52
31,000 Informix Corp.* 246
3,850 infoUSA, Inc.* 26
2,000 Inspire Insurance Solutions, Inc.* 14
3,100 Integrated Systems, Inc.* 32
3,500 Inter-Tel, Inc. 62
1,300 InterVU, Inc.* 48
700 iTurf Inc.* 7
2,200 iVillage, Inc.* 78
3,300 JDA Software Group, Inc.* 39
1,100 Juno Online Services, Inc.* 18
1,600 Launch Media, Inc.* 19
4,900 Learn2.com, Inc.* 14
3,400 Manugistics Group, Inc.* 36
3,100 Mapics, Inc.* 27
800 MapQuest.com, Inc.* 10
500 Marketwatch.com, Inc.* 24
2,200 Mede America Corp.* 51
500 Media Metrix* 35
2,000 Mediconsult.com, Inc.* 15
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
SOFTWARE - 7.5% (CONT'D.)
6,100 Mercury Interactive Corp.* $394
4,000 MessageMedia, Inc.* 43
1,100 Metro Information Services, Inc.* 14
1,700 Micromuse, Inc.* 109
6,300 MicroStrategy, Inc.* 353
4,889 Midway Games, Inc.* 77
1,700 Mpath Interactive* 20
1,800 Multex.com, Inc.* 23
3,875 National Instruments Corp.* 137
4,100 Neomagic Corp.* 32
1,100 Neon Systems, Inc.* 30
1,800 Net Perceptions, Inc.* 31
2,500 Netgravity* 83
1,000 Netobjects* 6
1,000 Netopia, Inc.* 40
2,700 Nvidia Corp.* 52
700 Omega Research, Inc.* 3
2,900 OneMain.com, Inc.* 48
2,100 OnHealth Network Co.* 13
1,100 Onyx Software Corp.* 16
4,600 Open Market, Inc.* 60
400 PCOrder.com, Inc.* 14
4,900 Pegasystems, Inc.* 38
4,000 Peregrine Systems, Inc.* 163
14,100 Per-Se Technologies, Inc.* 48
2,300 Pervasive Software, Inc.* 79
4,300 Phoenix Technologies Ltd.* 48
3,000 Pinnacle Systems, Inc.* 127
5,800 Policy Management Systems Corp. * 183
2,100 Preview Travel, Inc.* 34
2,200 Probusiness Services, Inc.* 59
2,500 Progress Software Corp.* 78
1,000 Project Software & Development* 53
1,600 Proxicom, Inc.* 94
700 Private Business, Inc.* 3
3,500 QuadraMed Corp.* 26
5,100 Rare Medium Group, Inc.* 54
500 Razorfish, Inc.* 22
3,900 Remedy Corp.* 111
5,000 Saga Systems, Inc.* 72
2,200 Sagent Technology Inc.* 21
600 Saleslogix Corp* 12
2,000 Sanchez Computer Associates, Inc.* 70
3,000 Santa Cruz Operation, Inc.* 36
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
SMALL CAP INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 99.5% (CONT'D.)
SOFTWARE - 7.5% (CONT'D.)
1,600 Schawk, Inc. $ 16
2,100 SCM Microsystems, Inc.* 95
4,100 Security First Technologies Corp.* 159
1,500 Serena Software, Inc.* 26
500 Silknet Software, Inc.* 23
1,400 Softnet Systems* 34
2,600 Sportsline USA, Inc.* 77
1,300 SPSS, Inc.* 25
2,600 Spyglass, Inc.* 32
1,800 SS&C Technologies, Inc.* 10
5,924 Structural Dynamics Research* 89
600 Sunquest Information Systems* 10
4,100 SVI Holdings, Inc.* 37
13,500 Sybase, Inc.* 159
2,000 Telescan, Inc.* 33
800 Tenfold Corp* 21
1,900 Theglobe.com, Inc.* 26
1,000 TheStreet.com, Inc.* 18
1,900 THQ, Inc.* 82
5,100 Transaction Systems Architects * 137
2,200 TSI International Software Ltd.* 60
800 Unigraphics Solutions, Inc.* 22
1,600 USinternetworking, Inc.* 50
4,500 Vantive Corp.* 39
2,100 Verity, Inc.* 145
5,600 VerticalNet, Inc.* 207
4,300 Visio Corp.* 169
3,600 WAVO Corp.* 16
1,000 Webtrends Corp.* 45
5,487 Wind River Systems* 104
1,800 Worldgate Communications* 41
1,300 XOOM.com, Inc.* 65
2,000 Ziff-Davis, Inc.* 43
2,500 Zixit Corp.* 74
------------
10,251
------------
TELECOMMUNICATION EQUIPMENT - 2.7%
3,300 Adtran, Inc.* 126
11,700 Advanced Fibre Communication* 260
4,000 Advanced Radio Telecom Corp.* 50
4,640 Allen Telecom, Inc.* 45
13,400 Andrew Corp* 233
3,950 Antec Corp.* 210
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
TELECOMMUNICATION EQUIPMENT - 2.7% (CONT'D.)
8,000 Aspect Telecommunications* $ 136
2,600 Aware, Inc.* 75
1,600 Carrier Access Corp.* 67
1,500 C-COR.net Corp.* 46
7,300 Cellnet Data Systems, Inc.* 29
2,800 Com21, Inc.* 36
7,900 Commscope, Inc.* 257
10,200 Digital Microwave Corp.* 160
6,500 DSP Communications, Inc.* 123
900 Excel Switching Corp.* 32
10,700 Executone Information Systems* 32
10,600 Glenayre Technologies, Inc.* 32
1,800 Harmonic, Inc.* 235
7,900 Interdigital Communications Corp.* 43
4,100 International Fibercom, Inc.* 22
1,400 IPC Communications, Inc.* 86
700 Melita International Corp.* 5
800 Northeast Optic Network, Inc.* 30
2,500 North Pittsburgh Systems, Inc. 46
3,600 Network Equipment Technologies * 33
400 Optical Cable Corp.* 4
6,100 PageMart Wireless, Inc.* 37
16,000 Paging Network, Inc.* 16
10,900 Pairgain Technologies, Inc.* 139
8,100 P-Com, Inc.* 57
6,900 PictureTel Corp.* 29
3,400 Pinnacle Holdings, Inc.* 89
2,700 Plantronics, Inc.* 134
2,300 Powerwave Technologies, Inc.* 111
4,100 Premisys Communications, Inc.* 34
1,700 Proxim, Inc.* 78
9,800 SkyTel Communications, Inc.* 179
1,800 Stanford Telecommunications* 57
1,656 Superior Telecom, Inc. 23
4,500 Tekelec* 62
2,300 Terayon Corp.* 112
1,900 Tut Systems, Inc.* 49
2,900 Westell Technologies, Inc.* 24
7,300 World Access, Inc.* 82
------------
3,765
------------
TELECOMMUNICATIONS - 1.9%
2,443 Adaptive Broadband Corp.* 82
2,000 Advanced Communications Group, Inc.* 16
2,000 Aerial Communications, Inc.* 54
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
TELECOMMUNICATIONS - 1.9% (CONT'D.)
2,100 American Mobile Satellite Corp.* $ 37
1,500 CT Communications, Inc. 74
4,900 Caprock Communications Corp.* 114
3,700 Commnet Cellular, Inc.* 116
1,633 Commonwealth Telephone Enterprise* 72
1,100 CTC Communications Corp. * 18
1,100 Destia Communications, Inc.* 14
8,300 e.spire Communications, Inc.* 60
1,500 Electric Lightwave, Inc.* 20
6,300 General Communication* 33
2,400 Hyperion Telecommunications* 60
7,700 ICG Communications, Inc.* 120
3,300 IDT Corp.* 69
1,000 Inet Technologies, Inc.* 40
6,900 ITC Deltacom, Inc.* 190
4,700 IXC Communications, Inc.* 185
500 Latitude Communications* 15
3,000 Leap Wireless International, Inc.* 70
3,350 Mastec, Inc.* 99
1,600 Metricom, Inc.* 36
2,200 MGC Communications, Inc.* 46
3,800 MRV Communications, Inc.* 90
5,000 Omnipoint Corp.* 279
2,300 Pacific Gateway Exchange, Inc.* 38
3,800 Powertel, Inc.* 209
7,700 Premiere Technologies, Inc.* 46
4,940 Price Communications Corp.* 124
6,200 Star Telecommunications, Inc.* 34
6,400 Talk.com, Inc.* 83
1,750 Transaction Network Services, Inc.* 69
1,700 US LEC Corp.* 42
1,600 West Teleservices Corp.* 17
1,200 Worldport Communications, Inc.* 1
------------
2,672
------------
TELEPHONE - 0.3%
2,200 CFW Communications Co. 53
7,600 Intermedia Communications* 165
3,700 Primus Telecommunications Group* 78
1,800 Viatel, Inc.* 53
------------
349
------------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
TEXTILES - 0.2%
2,700 Dan River, Inc.* $ 18
3,150 G & K Services, Inc. 128
2,725 Guilford Mills, Inc. 24
1,500 Pillowtex Corp. 11
1,700 Springs Industries, Inc. 58
1,400 Synthetic Industries, Inc.* 38
1,900 Unifirst Corp. 26
------------
303
------------
TOBACCO - 0.2%
1,900 Brooke Group Ltd. 32
7,650 DIMON, Inc. 30
1,300 General Cigar Holdings, Inc.* 9
5,400 Universal Corp. 141
------------
212
------------
TOYS/GAMES/HOBBIES - 0.3%
2,500 Action Performance Co., Inc.* 53
9,000 Boyds Collection Ltd.* 110
3,000 Department 56* 72
1,100 Jakks Pacific, Inc.* 41
1,400 Marvel Enterprises, Inc.* 8
1,900 Racing Champions Corp.* 11
7,300 Topps Co. (The)* 55
------------
350
------------
TRANSPORTATION - 1.7%
5,112 Air Express International Corp. 116
8,000 Airborne Freight Corp. 169
7,100 Alexander & Baldwin, Inc. 170
3,500 American Freightways Corp.* 64
3,200 Arnold Industries, Inc. 40
2,350 Atlas Air, Inc.* 51
6,700 C.H. Robinson Worldwide, Inc. 226
2,050 Circle International Group 42
3,600 Consolidated Freightways Corp.* 36
1,300 Covenant Transport, Inc.* 20
2,550 Eagle USA Airfreight, Inc.* 76
5,100 Florida East Coast Industries 160
3,300 Fritz Companies, Inc.* 34
1,600 Forward Air Corp.* 38
2,916 Heartland Express, Inc.* 41
1,000 HUB Group, Inc.* 20
3,600 Hunt (JB) Transportation Services, Inc. 50
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
SMALL CAP INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 99.5% (CONT'D.)
TRANSPORTATION - 1.7% (CONT'D.)
3,300 Kirby Corp.* $ 65
1,150 Knight Transportation, Inc.* 17
1,600 Landstar System, Inc.* 56
1,500 MS Carriers, Inc.* 36
3,527 Offshore Logistics, Inc.* 36
4,400 Overseas Shipholding Group 68
3,200 Pittston Bax Group 26
2,100 Roadway Express, Inc. 42
6,075 Swift Transportation Co., Inc.* 120
1,100 US Xpress Enterprises, Inc. 6
4,300 US Freightways Corp. 204
5,037 Werner Enterprises, Inc. 89
8,400 Wisconsin Central Transport* 115
4,100 Yellow Corp.* 68
------------
2,301
------------
TRUCKING & LEASING - 0.2%
1,400 Amerco, Inc.* 40
2,200 Interpool, Inc. 17
7,775 Rollins Truck Leasing Corp. 79
2,200 Xtra Corp. 87
------------
223
------------
WATER - 0.4%
1,500 American States Water Co. 50
1,876 Aquarion Co. 67
1,900 California Water Service Group 52
1,400 E'town Corp. 69
5,800 Philadelphia Suburban Corp. 137
300 SJW Corp. 27
4,588 United Water Resources, Inc. 150
------------
552
------------
Total Common Stocks
(cost $137,688) 136,334
------------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
SHORT-TERM INVESTMENT - 0.1%
(cost $164)
$164 Banco Popular, Puerto Rico
Eurodollar Time Deposits,
5.688%, 10/1/99 $ 164
------------
Total Investments - 99.6%
(cost $137,852) 136,498
Other Assets less Liabilities - 0.4% 545
------------
NET ASSETS - 100.0% $137,043
============
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
SMALL CAP FUND
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 96.1%
ADVERTISING - 0.4%
18,600 Cyrk, Inc.* $ 103
900 Grey Advertising, Inc. 331
4,800 Ha-Lo Industries, Inc.* 30
7,350 Penton Media, Inc. 119
5,400 Telespectrum Worldwide, Inc.* 32
17,600 True North Communications 640
------------
1,255
------------
AEROSPACE - 1.1%
38,550 AAR Corp. 694
12,900 Aeroflex, Inc.* 157
14,600 BE Aerospace, Inc.* 174
13,100 Curtiss-Wright Corp. 422
25,074 Fairchild Corp.(The)* 257
18,900 Nichols Research Corp.* 503
38,900 Orbital Sciences Corp.* 681
7,100 Primex Technologies, Inc. 140
2,700 SPACEHAB, Inc.* 13
4,200 Titan Corp.* 60
19,400 United Industrial Corp. 178
------------
3,279
------------
AGRICULTURE - 0.0%
4,000 Andersons (The), Inc. 35
------------
AIRLINES - 0.7%
23,400 Alaska Airgroup, Inc.* 952
14,000 Amtran, Inc.* 262
11,600 Hawaiian Airlines, Inc.* 27
38,400 Mesa Air Group, Inc.* 235
27,600 SkyWest, Inc. 605
------------
2,081
------------
APPAREL - 1.2%
165,700 Burlington Industries, Inc.* 735
16,400 Cone Mills Corp.* 80
33,300 Delta Woodside Industries, Inc. 91
9,600 Donna Karan International, Inc.* 82
6,500 Florsheim Group, Inc.* 16
8,000 Garan, Inc. 261
18,600 Hartmarx Corp.* 74
32,000 Kellwood Co. 704
11,300 Nautica Enterprises, Inc.* 182
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
APPAREL - 1.2% (CONT'D.)
9,200 Oxford Industries, Inc. $ 198
4,700 Perry Ellis International, Inc.* 51
36,700 Phillips-Van Heusen Corp. 326
20,800 Russell Corp. 295
10,800 Superior Uniform Group, Inc. 127
3,900 Weyco Group, Inc. 85
14,800 Wolverine World Wide 168
------------
3,475
------------
AUTO PARTS & EQUIPMENT - 1.0%
28,900 Arvin Industries, Inc. 894
3,200 Bandag, Inc. 102
5,095 Dura Automotive Systems, Inc.* 122
7,100 Edelbrock Corp.* 102
17,900 Exide Corp. 171
200 Federal Screw Works 9
12,100 R & B, Inc.* 67
18,900 Standard Motor Products, Inc. 367
22,800 Standard Products Co. 807
16,600 Titan International, Inc. 170
------------
2,811
------------
BANKS - 3.4%
1,700 ABC Bancorp 22
5,500 Area Bancshares Corp. 158
3,000 Bancfirst Corp. 94
17,700 Bay View Capital Corp. 235
1,098 BB&T Corp. 36
14,933 Brenton Banks, Inc. 208
9,900 BSB Bancorp, Inc. 238
9,100 Carolina First Corp. 180
900 Cass Commercial Corp. 23
5,000 Cathay Bancorp, Inc. 178
4,000 CB Bancshares, Inc. 115
8,132 Chittenden Corp. 232
9,300 Citizens Banking Corp. 243
3,000 City Holding Co. 58
3,500 Commercial Bank of New York 41
7,600 Community Bank System, Inc. 208
6,270 Community Trust Bancorp, Inc. 136
2,800 Corus Bankshares, Inc. 72
6,975 Covest Bancshares, Inc. 95
15,400 CPB, Inc. 352
21,050 F.N.B. Corp. 510
5,564 First Charter Corp. 97
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
SMALL CAP FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 96.1% (CONT'D.)
BANKS - 3.4% (CONT'D.)
3,250 First Merchants Corp. $ 77
13,900 First Republic Bank* 368
6,700 First United Bancshares 119
8,800 GBC Bancorp 171
10,730 Grand Premier Financial, Inc. 165
2,900 Hancock Holding Co. 116
15,800 Imperial Bancorp 336
4,500 Interchange Financial Services Corp. 77
10,350 Interwest Bancorp, Inc. 215
400 Iroquois Bancorp, Inc. 7
2,800 ISB Financial Corp. 47
600 James River Bankshares, Inc. 8
12,306 Jeffbanks, Inc. 355
300 Mahaska Investment Co. 4
2,700 Merchants Bancshares, Inc. 64
13,050 Mid-America Bancorporation* 315
9,400 National Bancorp of Alaska 241
13,214 National City Bancorp 231
12,101 NBT Bancorp, Inc. 209
6,000 Northern States Financial Corp. 138
4,200 Old Second Bancorp, Inc. 111
8,893 Peoples Holding Co. 302
11,410 Premier National Bancorp, Inc. 198
950 Princeton National Bancorp 12
5,300 Provident Bankshares Corp. 113
6,100 Republic Bancshares, Inc.* 88
32,619 Republic Security Financial Corp. 283
52,100 Riggs National Corp. 879
2,600 Southwest Bancorp, Inc. 57
8,000 Sterling Bancorp 138
8,550 Triangle Bancorp, Inc. 158
4,312 TriCo Bancshares 79
25,500 U.S. Bancorp, Inc. 344
11,500 Wesbanco, Inc. 293
------------
9,849
------------
BEVERAGES - 0.2%
14,365 Chock Full O' Nuts Corp.* 156
3,100 Farmer Bros. Co. 515
------------
671
------------
See Notes to the Financial Statements.
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
BIOTECHNOLOGY - 0.5%
3,900 Bionova Holding Corp.* $ 9
13,000 Creative Biomolecules, Inc.* 49
3,900 Genome Therapeutics Corp.* 16
3,200 IDEC Pharmaceuticals Corp.* 301
9,500 Liposome Co., Inc.* 72
4,000 Neopath, Inc.* 19
41,500 Nexell Therapeutics, Inc.* 61
20,200 Northfield Laboratories, Inc.* 287
12,000 Protein Design Labs, Inc.* 434
17,800 Regeneron Pharmaceuticals, Inc.* 145
------------
1,393
------------
BUILDING MATERIALS - 1.9%
1,300 Advanced Lighting Techs* 9
6,400 Ameron International Corp. 300
4,400 Butler Manufacturing Co. 116
20,925 Elcor Corp. 523
21,800 Florida Rock Industries, Inc. 758
13,800 Genlyte Group, Inc.* 328
6,900 Giant Cement Holding, Inc.* 158
5,800 International Aluminum Co. 160
41,100 Jannock Ltd. 488
1,473 Juno Lighting, Inc. 18
12,100 Mestek, Inc.* 242
11,700 Nortek, Inc.* 399
3,300 Patrick Industries, Inc. 42
7,600 Puerto Rican Cement Co., Inc. 274
32,400 Texas Industries, Inc. 1,199
24,000 TJ International, Inc. 603
------------
5,617
------------
CHEMICALS - 1.7%
9,510 Aceto Corp. 103
8,100 Arch Chemicals, Inc. 131
5,300 Bush Boake Allen, Inc.* 140
32,000 Cambrex Corp. 846
5,100 Chemfab Corp.* 82
18,800 Chemfirst, Inc. 513
36,800 Ethyl Corp. 143
19,100 Fuller (H. B.) Co. 1,163
34,400 Hanna (M.A.) Co. 391
30,700 International Specialty Products, Inc.* 305
8,200 MacDermid, Inc. 279
10,100 Mississippi Chemical Corp. 71
25,200 Schulman (A.), Inc. 436
<PAGE>
NORTHERN FUNDS Semiannual Report
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
CHEMICALS - 1.7% (CONT'D.)
7,700 Sybron Chemicals, Inc.* $ 117
9,300 Tetra Technologies, Inc.* 95
7,200 Wellman, Inc. 130
------------
4,945
------------
COAL - 0.2%
51,400 Arch Coal, Inc. 633
------------
COMMERCIAL SERVICES - 3.0%
13,100 Aurora Biosciences Corp.* 178
46,900 Avis Rent A Car, Inc.* 979
13,100 Berlitz International, Inc.* 276
7,800 CDI Corp.* 213
13,600 Chemed Corp. 411
500 Childtime Learning Centers, Inc.* 6
4,200 Correctional Services Corp.* 21
16,400 Data Broadcasting Corp.* 124
4,400 Dollar Thrifty Automotive Group* 91
49,200 Franklin Covey Co.* 378
5,100 Group Maintenance America Corp.* 64
8,700 Health Management Systems, Inc. 41
15,016 Healthcare Services Group, Inc.* 122
15,900 Insurance Auto Auctions, Inc.* 237
9,800 Integrated Electrical Services* 155
7,600 IntelliQuest Information Group* 83
52,600 Interim Services, Inc.* 861
5,800 Lason, Inc.* 258
3,700 M/A/R/C, Inc. 52
6,685 Monro Muffler Brake, Inc.* 45
43,300 National Processing, Inc.* 390
6,900 NCO Group, Inc.* 324
38,400 Olsten Corp. 401
28,200 Personnel Group of America, Inc.* 176
25,400 Phycor, Inc.* 111
40,600 Primark Corp.* 1,155
23,800 Protection One, Inc.* 95
6,000 Quest Education Corp.* 47
17,700 Renaissance Worldwide, Inc.* 69
3,600 Right Management Consultants, Inc.* 41
10,800 RTW, Inc.* 62
10,100 Rural/Metro Corp.* 67
8,600 Staffmark, Inc.* 68
6,700 Strategic Distribution, Inc.* 21
11,200 Thermo TerraTech, Inc.* 50
79,064 US Oncology, Inc.* 717
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMERCIAL SERVICES - 3.0% (CONT'D.)
9,900 Vallen Corp.* $ 144
11,300 Volt Information Sciences, Inc.* 274
------------
8,807
------------
COMPUTERS - 3.8%
7,400 ACT Networks, Inc.* 65
50,000 Anixter International, Inc.* 1,163
37,800 Applied Magnetics Corp.* 33
8,500 Auspex Systems, Inc.* 75
1,800 BTG, Inc.* 13
4,700 Computer Network Technology Corp.* 44
66,900 Data General Corp.* 1,409
1,900 Digital Link Corp.* 19
12,300 Evans & Sutherland Computer Co.* 152
30,400 Exabyte Corp.* 132
1,700 Franklin Electronic Publish Co.* 5
19,700 Hutchinson Technology, Inc.* 532
32,724 Inacom Corp.* 301
57,100 Intergraph Corp.* 321
11,167 InterVoice, Inc.* 124
39,400 Mentor Graphics Corp.* 337
57,000 Metamor Worldwide, Inc.* 1,012
7,900 MicroTouch Systems, Inc.* 133
13,400 MTI Technology Corp.* 309
19,600 MTS Systems Corp. 203
10,700 Mylex Corp.* 128
4,700 National TechTeam, Inc.* 22
23,100 Network Computing Devices, Inc.* 104
17,600 Network Peripherals, Inc.* 321
13,600 ODS Networks, Inc.* 78
12,600 Opti, Inc. 89
1,000 Overland Data, Inc.* 5
12,000 Par Technology Corp.* 85
2,000 Printronix, Inc.* 38
42,000 Read-Rite Corp.* 185
15,200 RSA Security, Inc.* 404
62,540 S3 Inc.* 653
48,500 Sequent Computer Systems, Inc.* 873
4,900 Silicon Storage Technology, Inc.* 69
22,500 Smart Modular Technologies* 766
5,800 Technology Solutions Co. 82
20,900 Telxon Corp.* 175
12,800 Tyler Corp.* 57
3,500 Verilink Corp.* 8
11,800 Xircom, Inc.* 504
------------
11,028
------------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
SMALL CAP FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 96.1% (CONT'D.)
COSMETICS/PERSONAL CARE - 0.0%
16,200 Paragon Trade Brands, Inc.* $ 3
800 Stephan Co. 3
------------
6
------------
DISTRIBUTION/WHOLESALE - 0.9%
4,800 Advanced Marketing Services, Inc. 95
25,700 Aviall, Inc.* 263
3,500 Aviation Sales Co.* 67
12,800 Bell Microproducts, Inc.* 108
16,100 Building Material Holding Corp.* 161
45,300 Handleman Co.* 600
26,700 Hughes Supply, Inc. 581
5,100 Merisel, Inc.* 8
1,500 NuCo2, Inc.* 8
32,600 Owens & Minor, Inc. 314
8,800 PrimeSource Corp. 51
19,740 United Stationers, Inc.* 421
------------
2,677
------------
DIVERSIFIED FINANCIAL SERVICES - 1.3%
7,800 Advest Group, Inc. 142
16,100 Amplicon, Inc. 195
13,300 Amresco, Inc. 40
13,800 Arcadia Financial Ltd. 60
2,000 Atalanta Sosnoff Capital Corp.* 14
27,400 Credit Acceptance Corp.* 164
10,650 Dain Rauscher Corp. 522
9,700 Delta Financial Corp.* 49
18,800 Doral Financial Corp. 251
14,300 DVI, Inc.* 234
1,041 First Albany Cos., Inc. 22
34,954 Metris Cos., Inc. 1,029
5,700 National Discount Brokers Group, Inc.* 151
4,700 New Century Financial Corp.* 83
800 NextCard, Inc.* 20
27,900 Phoenix Investment Partners Ltd. 234
14,400 Resource Bancshares Mortgage Group, Inc. 72
6,987 Southwest Securities Group, Inc. 189
1,281 Stifel Financial Corp. 11
9,800 WFS Financial, Inc. 201
------------
3,683
------------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
ELECTRIC - 4.1%
8,300 Bangor Hydro-Electric Co.* $ 137
44,200 Central Hudson Gas & Electric 1,740
15,500 Central Vermont Public Service Corp. 204
14,200 CILCORP, Inc. 920
67,050 CMP Group, Inc. 1,768
48,400 Eastern Utilities Association 1,446
10,000 Empire District Electric Co. 256
7,700 Northwestern Corp. 175
68,800 Public Service Co. of New Mexico 1,256
6,400 St. Joseph Light & Power Co. 132
30,900 TNP Enterprises, Inc. 1,203
9,700 Trigen Energy Corp. 222
26,700 United Illuminating Co. 1,292
6,000 Unitil Corp. 146
42,400 WPS Resources Corp. 1,190
------------
12,087
------------
ELECTRICAL COMPONENTS & EQUIPMENT - 0.1%
16,400 Encore Wire Corp.* 149
11,300 Insteel Industries, Inc. 102
7,764 Intermagnetics General Corp.* 47
16,100 Valence Technology, Inc.* 75
------------
373
------------
ELECTRONICS - 4.3%
6,100 ADE Corp. 85
12,300 Anadigics, Inc.* 346
5,300 Analogic Corp. 167
3,350 Bel Fuse, Inc., Class A* 116
10,400 Benchmark Electronics, Inc.* 367
28,400 Canadian Marconi Co. 334
23,300 Checkpoint Systems, Inc.* 217
17,700 Coherent, Inc.* 395
39,792 CTS Corp. 2,287
13,150 Cubic Corp. 308
24,400 DII Group, Inc. 859
16,500 Dynatech Corp.* 83
7,000 EG&G, Inc. 279
7,700 FLIR Systems, Inc.* 100
9,600 IFR Systems, Inc.* 29
9,200 Instron Corp. 202
56,900 Integrated Device Technology, Inc.* 1,053
3,100 ITI Technologies, Inc.* 93
10,100 Itron, Inc.* 59
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
ELECTRONICS - 4.3% (CONT'D.)
9,500 Kemet Corp.* $ 304
2,700 Mackie Designs, Inc.* 11
4,400 Micrel, Inc.* 191
500 Moore Products Co. 11
12,200 Newport Corp. 203
14,300 Optical Coating Laboratory, Inc. 1,316
21,500 Park Electrochemical Corp. 707
17,300 Paxar Corp.* 167
11,200 Pittway Corp., Class A 353
2,300 Planar Systems, Inc.* 15
2,700 Recoton Corp.* 18
5,900 Rofin-Sinar Technoligies, Inc.* 37
3,900 Sheldahl, Inc.* 23
1,700 Sparton Corp.* 9
21,000 Standard Microsystems Corp.* 194
8,200 Tech-Sym Corp.* 161
11,900 Thermedics, Inc.* 89
16,900 Thermo Optek Corp.* 143
22,800 Thermoquest Corp.* 231
8,400 Thermospectra Corp.* 132
10,100 TSI, Inc.* 124
8,500 Universal Electronics, Inc.* 197
5,100 Varian, Inc.* 91
2,200 Veeco Instruments, Inc.* 62
13,900 Woodward Governor Co. 347
------------
12,515
------------
ENGINEERING & CONSTRUCTION - 1.2%
3,291 Anthony & Sylvan Pools Corp.* 19
8,300 BFC Construction Corp.* 54
22,700 Foster Wheeler Corp. 274
37,200 Granite Construction, Inc. 970
64,300 Morrison Knudsen Corp.* 663
10,000 Pitt-Des Moines, Inc. 219
19,700 Stone & Webster, Inc. 552
10,800 Turner Corp.* 309
15,383 URS Corp.* 377
------------
3,437
------------
ENTERTAINMENT - 1.0%
4,100 AMC Entertainment, Inc.* 57
4,500 Ameristar Casinos, Inc.* 17
21,000 Argosy Gaming Co.* 278
40,400 Ascent Entertainment Group, Inc.* 556
52,900 Boyd Gaming Corp.* 317
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
ENTERTAINMENT - 1.0% (CONT'D.)
5,500 Carmike Cinemas, Inc., Class A* $ 72
11,500 GC Cos., Inc.* 345
24,637 Hollywood Park, Inc.* 379
5,000 Isle of Capri Casinos, Inc.* 50
12,300 Jackpot Enterprises, Inc.* 108
17,300 Loews Cineplex Entertainment Co.* 136
13,400 Mikohn Gaming Corp.* 54
11,200 Players International, Inc.* 83
14,400 Station Casinos, Inc.* 335
------------
2,787
------------
ENVIRONMENTAL CONTROL - 0.7%
4,400 Ionics, Inc.* 142
46,672 IT Group, Inc.* 446
10,900 Layne Christensen Co.* 117
8,000 Mine Safety Appliances Co. 504
20,275 Safety-Kleen Corp.* 245
21,500 Superior Services, Inc.* 577
16,100 Thermo Ecotek Corp.* 146
------------
2,177
------------
FOOD - 1.6%
60,318 Chiquita Brands International, Inc. 358
51,900 Earthgrains Co. 1,148
29,844 Imperial Sugar Co. 183
21,400 International Multifoods Corp. 492
12,000 J & J Snack Foods Corp.* 237
20,600 Michael Foods, Inc. 541
13,200 Midwest Grain Products, Inc.* 124
25,300 Pilgrims Pride Corp., Class B 220
12,650 Pilgrims Pride Corp. 65
11,000 Riviana Foods, Inc. 212
20,450 Sanderson Farms, Inc. 205
4,800 Schultz Save-O Stores, Inc. 76
2,750 Seaboard Corp. 594
22,114 WLR Foods, Inc.* 152
13,640 Zapata Corp. 68
------------
4,675
------------
FOREST PRODUCTS & PAPER - 0.5%
32,000 Chesapeake Corp.* 968
28,900 Pope & Talbot, Inc. 358
------------
1,326
------------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
SMALL CAP FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 96.1% (CONT'D.)
GAS - 1.7%
3,000 Chesapeake Utilities Corp. $ 52
9,200 Connecticut Energy Corp. 356
8,700 CTG Resources, Inc. 308
23,500 Energen Corp. 476
2,300 Energynorth, Inc. 95
20,300 Northwest Natural Gas Co. 524
20,000 NUI Corp. 495
8,500 Pennsylvania Enterprises, Inc. 276
8,900 Providence Energy Corp. 247
4,100 South Jersey Industries 108
17,845 Southern Union Co.* 339
54,000 Southwest Gas Corp. 1,455
22,800 Southwestern Energy Company 207
------------
4,938
------------
HAND/MACHINE TOOLS - 0.3%
3,700 Axsys International, Inc.* 38
14,300 Hardinge, Inc. 229
20,600 Kennametal, Inc. 533
6,800 Powell Industries, Inc.* 59
534 Starrett (L.S.) Co., Class B 15
------------
874
------------
HEALTH CARE - 4.1%
28,100 Acuson Corp.* 358
7,800 Advanced Neuromodulation System, Inc.* 64
10,900 American Healthcorp, Inc.* 67
22,700 Apria Healthcare Group, Inc.* 380
8,900 ATS Medical, Inc.* 88
1,800 BioReliance Corp.* 11
8,400 Biosite Diagnostics, Inc.* 76
13,000 CardioThoracic Systems, Inc.* 218
11,900 Clintrials Research, Inc.* 65
2,500 Cohesion Technologies, Inc.* 15
5,900 Collagen Aesthetics, Inc.* 96
7,600 CONMED Corp.* 186
7,100 Cyberonics, Inc. 127
22,000 Datascope Corp.* 773
5,400 DEL Global Technologies Corp.* 43
11,200 Diagnostic Products Corp. 300
600 Dianon Systems, Inc.* 7
8,400 Endosonics Corp.* 71
2,300 General Surgical Innovations, Inc.* 16
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
HEALTH CARE - 4.1% (CONT'D.)
36,000 Haemonetics Corp.* $ 709
6,900 Hologic, Inc.* 28
54,800 IDEXX Laboratories, Inc.* 944
9,700 Igen International, Inc.* 242
11,800 Immucor, Inc.* 142
40,100 Invacare Corp. 784
53,300 Isolyser Co., Inc.* 197
20,550 LabOne, Inc. 193
54,800 Laboratory Corp. of America Holdings* 151
2,500 Lunar Corp.* 19
54,700 Matria Healthcare, Inc.* 321
13,700 Maxxim Medical, Inc.* 328
17,416 Molecular Biosystems, Inc.* 30
9,800 NMT Medical, Inc.* 25
18,400 OEC Medical Systems, Inc.* 646
7,100 Orthologic Corp.* 21
12,300 Polymedica Corp.* 286
11,500 Prime Medical Services, Inc.* 109
11,200 Protocol Systems, Inc.* 78
32,000 PSS World Medical, Inc.* 286
42,500 Quest Diagnostics, Inc.* 1,105
20,200 Quidel Corp.* 88
21,300 Quorum Health Group, Inc.* 150
7,200 RehabCare Group, Inc.* 128
2,000 ResCare, Inc.* 34
36,750 Sierra Health Services* 372
22,700 Sola International, Inc.* 352
14,000 Spacelabs Medical, Inc.* 212
14,800 Summit Technology, Inc.* 271
9,400 Thermotrex Corp.* 59
21,800 Trex Medical Corp.* 90
31,600 United Wisconsin Services, Inc.* 198
7,500 Urocor, Inc.* 31
6,000 Vital Signs, Inc.* 122
2,100 Xomed Surgical Products, Inc.* 120
------------
11,832
------------
HOME BUILDERS - 3.1%
13,300 Beazer Homes USA, Inc.* 247
28,700 Engle Homes, Inc. 296
21,200 Kaufman & Broad Home Corp. 437
50,900 MDC Holdings, Inc. 824
12,300 M/I Schottenstein Homes, Inc. 203
16,200 NVR, Inc.* 818
52,700 Ryland Group, Inc. 1,199
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
HOME BUILDERS - 3.1% (CONT'D.)
40,500 Schuler Homes, Inc.* $ 273
14,600 Skyline Corp. 375
3,200 Southern Energy Homes, Inc.* 8
73,050 Standard-Pacific Corp.* 749
14,700 Thor Industries, Inc. 375
39,000 Toll Brothers, Inc.* 743
53,150 U. S. Home Corp.* 1,478
50,200 Webb (Del E.) Corp. 1,104
------------
9,129
------------
HOME FURNISHINGS - 1.4%
30,400 Bassett Furniture Industries 578
19,200 Fedders Corp. 115
10,600 Flexsteel Industries, Inc. 143
14,000 Furniture Brands International, Inc.* 276
17,300 Harman International Industries, Inc. 728
4,850 Knape & Vogt Manufacturing Co. 73
4,400 Ladd Furniture, Inc.* 93
54,700 La-Z-Boy, Inc. 1,043
22,600 O'Sullivan Industry Holdings, Inc.* 339
3,800 Pulaski Furniture Corp.* 57
15,600 Royal Appliance Manufacturing Co.* 78
57,100 Sunbeam Corp.* 325
17,800 Windmere-Durable Holdings, Inc.* 215
------------
4,063
------------
HOUSEHOLD PRODUCTS/WARES - 1.2%
22,300 American Business Products, Inc. 351
8,400 Central Garden & Pet Co.* 64
12,100 CNS, Inc.* 46
15,800 CSS Industries, Inc.* 363
5,000 Ennis Business Forms, Inc. 44
12,800 Harland (John H.) Co. 249
17,600 Helen of Troy Ltd.* 169
11,200 Hunt Corp. 92
8,900 Nashua Corp.* 79
7,400 Oil Dri Corp. 108
23,300 Russ Berrie & Co., Inc. 488
51,800 Standard Register Co. 1,217
11,100 Swiss Army Brands, Inc.* 103
------------
3,373
------------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
HOUSEWARES - 0.3%
25,800 Ekco Group, Inc.* $ 181
36,700 Metromedia International Group, Inc.* 151
10,700 Mikasa, Inc. 126
11,000 National Presto Industries, Inc. 425
------------
883
------------
INSURANCE - 5.9%
20,800 Acceptance Insurance Cos., Inc.* 265
14,900 Alfa Corp. 242
9,600 Allcity Insurance Co.* 61
6,000 American Heritage Life Investment Corp. 191
35,700 Amerus Life Holdings, Inc., Class A 756
79,200 Argonaut Group, Inc. 1,990
12,300 Atlantic American Corp. 37
3,800 Baldwin & Lyons, Inc., Class B 78
37,500 Capital RE Corp. 375
4,400 Capitol Transamerica Corp. 62
6,800 Centris Group, Inc. 68
5,600 Chartwell RE Corp. 81
28,100 CNA Surety Corp.* 369
8,400 Commerce Group, Inc. 193
3,300 Danielson Holdings Corp.* 20
10,888 Donegal Group, Inc. 76
15,200 EMC Insurance Group, Inc. 146
39,700 Enhance Financial Services Group, Inc. 702
4,800 Farm Family Holdings, Inc.* 190
51,000 FBL Financial Group, Inc., Class A 1,052
5,800 Foremost Corp. of America 139
12,200 Frontier Insurance Group, Inc. 107
6,400 Gainsco, Inc. 40
5,100 Guarantee Life Cos., Inc. 156
43,600 Harleysville Group, Inc. 613
17,200 Kansas City Life Insurance Co. 628
20,300 LandAmerica Financial Group, Inc. 401
2,300 Meadowbrook Insurance Group 26
9,680 Meridian Insurance Group, Inc. 160
13,600 Midland Co. 286
4,300 Navigators Group (The), Inc.* 58
14,100 Nymagic, Inc. 183
700 Old Guard Group, Inc.* 8
6,700 Penn Treaty American Corp.* 140
46,700 Presidential Life Corp. 800
6,192 Professionals Group, Inc.* 155
20,900 PXRE Corp. 304
6,533 Radian Group, Inc. 281
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
SMALL CAP FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 96.1% (CONT'D.)
INSURANCE - 5.9% (CONT'D.)
67,700 Reliance Group Holdings $ 300
6,700 Renaissancere Holdings Ltd. 232
12,500 Risk Capital Holdings, Inc.* 195
16,000 RLI Corp. 528
7,900 SCPIE Holdings, Inc. 249
54,100 Selective Insurance Group, Inc. 1,021
10,900 State Auto Financial Corp. 112
17,100 Stewart Information Services Corp. 313
10,000 Trenwick Group, Inc. 166
10,950 United Fire & Casualty Co. 252
18,600 W.R. Berkley Corp. 428
9,845 White Mountains Insurance Group 1,335
24,000 Zenith National Insurance Corp. 513
------------
17,083
------------
INVESTMENT COMPANIES - 0.4%
14,300 Kaiser Ventures, Inc.* 185
26,100 PEC Israel Economic Corp.* 909
------------
1,094
------------
IRON/STEEL - 1.3%
13,100 Carpenter Technology Corp. 321
7,700 Citation Corp.* 131
20,200 Cleveland-Cliffs, Inc. 629
16,700 Gibraltar Steel Corp.* 352
15,400 Lone Star Technologies, Inc.* 308
5,300 Material Sciences Corp.* 71
14,500 Olympic Steel, Inc.* 83
35,500 Oregon Steel Mills, Inc. 397
30,825 Reliance Steel & Aluminum Co. 647
15,225 Roanoke Electric Steel Corp. 266
9,300 Ryerson Tull, Inc. 215
16,700 Shiloh Industries, Inc.* 184
16,300 Steel Technologies, Inc. 189
------------
3,793
------------
LEISURE TIME - 0.3%
14,800 American Classic Voyager Co.* 339
10,900 Arctic Cat, Inc. 104
11,700 Coastcast Corp.* 146
18,300 Huffy Corp. 181
200 K2, Inc. 2
------------
772
------------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
LODGING - 0.3%
31,250 Marcus Corp. $ 377
54,900 Prime Hospitality Corp.* 439
7,900 Suburban Lodges of America, Inc.* 45
5,800 Sunburst Hospitality Corp.* 36
------------
897
------------
MACHINERY-CONSTRUCTION & MINING - 0.3%
25,200 Astec Industries, Inc.* 608
30,700 Global Industries Technologies, Inc.* 374
------------
982
------------
MACHINERY-DIVERSIFIED - 2.2%
18,200 Applied Industrial Technology, Inc. 328
5,700 Applied Science & Technology, Inc.* 118
4,700 Cascade Corp. 49
5,200 CTB International Corp.* 35
33,500 Detroit Diesel Corp. 620
30,600 FSI International, Inc.* 252
9,300 Gardner Denver Machinery, Inc.* 141
7,400 Gehl Co.* 131
37,700 Gerber Scientific, Inc. 844
44,600 Imation Corp.* 1,383
21,100 Kulicke & Soffa Industries, Inc.* 513
21,700 Magnetek, Inc.* 194
25,050 Motivepower Industries, Inc.* 276
4,200 Sames Corp.* 75
9,376 SpeedFam-IPEC, Inc.* 113
11,800 Thermo Power Corp. 139
2,800 Thermo Sentron, Inc.* 38
15,600 Thomas Industries, Inc. 292
60,500 Unova, Inc.* 809
------------
6,350
------------
MEDIA - 1.2%
40,400 Banta Corp. 901
56,200 Bowne & Co., Inc. 678
2,400 Cadmus Communications Corp. 27
2,300 Courier Corp. 55
15,200 Lodgenet Entertainment Corp.* 198
17,800 On Command Corp. 338
13,600 Paxson Communications Corp.* 167
5,700 Scholastic Corp.* 285
5,600 Thomas Nelson, Inc. 55
25,250 World Color Press, Inc.* 941
------------
3,645
------------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
METAL FABRICATE/HARDWARE - 1.3%
11,800 Amcast Industries Corp. $ 157
13,000 Ampco-Pittsburgh Corp. 176
19,900 Commercial Metals Co. 572
11,500 Fansteel, Inc.* 46
15,200 Maverick Tube Corp.* 253
47,600 Mueller Industries, Inc.* 1,413
19,000 Quanex Corp. 487
9,000 Shaw Group, Inc.* 202
13,200 Transportation Technologies Industries* 229
6,800 Transtechnology Corp. 79
10,000 Wolverine Tube, Inc.* 155
------------
3,769
------------
METALS-DIVERSIFIED - 0.3%
22,200 Brush Wellman, Inc. 326
10,400 Century Aluminum Co. 112
2,700 Easco, Inc. 41
65,800 Hecla Mining Co.* 193
4,300 Stillwater Mining Co.* 116
------------
788
------------
MINING - 0.3%
87,900 Meridian Gold, Inc.* 599
6,200 Oglebay Norton Co. 128
11,648 Zemex Corp.* 82
------------
809
------------
MISCELLANEOUS MANUFACTURING - 1.7%
38,200 ACX Technologies, Inc.* 363
1,000 American Biltrite, Inc. 17
12,200 Bairnco Corp. 85
12,387 Bell Industries, Inc. 54
31,400 Dexter Corp. 1,172
15,600 Furon Co. 389
41,200 Griffon Corp.* 330
35,700 Justin Industries, Inc.* 506
11,200 Katy Industries, Inc. 134
900 Lynch Corp. 24
10,600 M & F Worldwide Corp.* 85
10,800 NCH Corp. 488
6,300 Osmonics, Inc.* 67
6,400 Park-Ohio Holdings Corp.* 80
14,000 Polymer Group, Inc.* 207
10,800 Quixote Corp. 162
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
MISCELLANEOUS MANUFACTURING - 1.7% (CONT'D.)
800 Safety Components International, Inc.* $ 2
8,200 SPS Technologies, Inc.* 311
25,150 Tredegar Industries, Inc. 538
------------
5,014
------------
OFFICE/BUSINESS EQUIPMENT - 0.1%
11,300 General Binding Corp. 229
------------
OFFICE FURNISHINGS - 0.1%
10,890 Virco Manufacturing Corp. 173
------------
OIL & GAS PRODUCERS - 1.7%
8,600 Atwood Oceanics, Inc.* 263
13,900 Basin Exploration, Inc.* 334
7,600 Callon Petroleum Co.* 116
48,399 Chesapeake Energy Corp. 188
18,500 Chieftain International, Inc.* 352
1,900 Clayton Williams Energy, Inc. 26
22,900 Enterprise Products Partners 454
15,000 Giant Industries, Inc. 174
11,600 Harken Energy Corp.* 13
31,700 Houston Exploration Co.* 687
23,000 HS Resources, Inc.* 377
30,567 Louis Dreyfus Natural Gas Co.* 655
19,100 Meridian Resource Corp.* 91
2,100 Nuevo Energy Co.* 36
12,200 Penn Virginia Corp. 253
11,500 Petrocorp, Inc.* 75
7,304 Swift Energy Co.* 92
38,400 Tesoro Petroleum Corp.* 634
20,300 Titan Exploration, Inc.* 100
13,600 Unit Corp.* 103
------------
5,023
------------
OIL & GAS SERVICES - 0.6%
8,900 Lufkin Industries, Inc. 136
22,800 Pool Energy Services Co.* 561
35,000 RPC, Inc. 243
33,000 Stolt Comex Seaway S.A.* 373
16,500 Stolt Comex Seaway S.A. ADR* 179
12,000 Tuboscope, Inc.* 149
------------
1,641
------------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
SMALL CAP FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 96.1% (CONT'D.)
PACKAGING & CONTAINERS - 0.1%
22,800 Longview Fibre Co. $ 284
------------
PHARMACEUTICALS - 2.9%
11,300 Alliance Pharmaceutical Corp.* 57
11,400 Axys Pharmaceuticals, Inc.* 45
15,455 Bergen Brunswig Corp. 160
28,444 Bindley Western Industries, Inc. 407
10,624 Block Drug Co., Class A 382
60,700 Carter-Wallace, Inc. 1,085
12,900 Cephalon, Inc.* 232
3,500 Chirex, Inc.* 90
25,900 Copley Pharmaceutical, Inc.* 285
20,400 COR Therapeutics, Inc.* 388
9,400 Corixa Corp.* 126
17,800 Dura Pharmaceuticals, Inc.* 248
6,741 Gilead Sciences, Inc.* 433
6,866 Herbalife International, Inc., Class A 105
19,900 Immune Response Corp.* 97
4,600 Matrix Pharmaceuticals, Inc.* 26
7,400 NABI, Inc.* 38
40,800 NBTY, Inc.* 311
33,000 Neurocrine Biosciences, Inc.* 190
5,500 Neurogen Corp.* 91
6,600 NPS Pharmaceuticals, Inc.* 38
2,200 Onyx Pharmaceuticals, Inc.* 18
25,300 OSI Pharmaceuticals, Inc.* 144
30,000 Perrigo Co.* 236
24,800 Pharmaceutical Resources, Inc. 126
14,335 Priority Healthcare Corp.* 443
27,900 Rexall Sundown, Inc.* 344
46,800 Roberts Pharmaceutical Corp.* 1,416
43,400 Scios, Inc.* 160
1,400 Sibia Neurosciences, Inc.* 12
52,500 SICOR, Inc.* 208
13,000 Syncor International Corp.* 488
15,600 Veterinary Centers of America, Inc.* 178
------------
8,607
------------
PIPELINES - 0.3%
48,900 Western Gas Resources, Inc.* 913
------------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
REAL ESTATE - 0.6%
21,900 Avatar Holdings, Inc.* $ 416
4,100 Echelon International Corp.* 102
17,500 Getty Realty Corp. 236
5,533 Jones Lang LaSalle, Inc.* 89
32,200 LNR Property Corp. 656
13,900 Trammell Crow Co.* 184
17,500 Wellsford Real Properties, Inc.* 166
------------
1,849
------------
REAL ESTATE INVESTMENT TRUSTS - 0.1%
10,600 Sovran Self Storage, Inc. 241
22,000 Winston Hotels, Inc. 195
------------
436
------------
RETAIL - 6.8%
33,800 Ann Taylor Stores Corp.* 1,382
16,500 Baker (J.), Inc. 130
13,400 Blair Corp. 236
55,900 Bob Evans Farms, Inc. 1,139
20,100 Bombay Co. (The), Inc.* 102
11,300 Bon-Ton Stores (The), Inc.* 45
24,500 Brown Group, Inc.* 449
17,200 Buffets, Inc.* 200
68,320 Burlington Coat Factory Warehouse Corp. 1,349
12,600 Cameron Ashley Building Product, Inc. 113
33,000 Cash America Investments, Inc. 311
11,925 CEC Entertainment, Inc.* 428
144,000 Charming Shoppes, Inc.* 738
15,900 Chart House Enterprises, Inc.* 86
27,800 CKE Restaurant, Inc. 202
7,800 Copart, Inc.* 144
51,900 Corporate Express, Inc.* 488
5,900 Creative Computers, Inc.* 38
9,100 Discount Auto Parts* 147
25,200 Dress Barn, Inc.* 462
17,800 Drug Emporium, Inc.* 120
3,000 Duckwall Alto Stores, Inc.* 25
23,400 Egghead.com, Inc.* 164
8,141 Frisch's Restaurants, Inc. 80
14,200 Gottschalks, Inc.* 128
23,600 Haverty Furniture, Inc. 342
79,000 Heilig-Meyers Co. 375
23,500 Hollywood Entertainment Corp.* 353
51,000 Homebase, Inc.* 201
16,300 Intertan, Inc.* 320
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
RETAIL - 6.8% (CONT'D.)
34,600 Jan Bell Marketing, Inc.* $ 106
5,000 Jo-Ann Stores, Inc., Class A* 62
8,700 Just For Feet, Inc.* 18
13,000 Lillian Vernon Corp. 163
38,500 Lone Star Steakhouse & Saloon, Inc.* 296
49,400 Michaels Stores, Inc.* 1,457
46,700 Micro Warehouse, Inc.* 563
12,437 Movado Group, Inc. 286
24,900 Musicland Stores Corp.* 218
4,900 Noland Co. 93
13,500 Piccadilly Cafeterias, Inc. 89
2,800 Quality Dining, Inc.* 7
5,700 Rare Hospitality International, Inc.* 123
4,200 REX Stores Corp.* 130
58,100 Ryan's Family Steak Houses, Inc.* 523
1,100 S & K Famous Brands, Inc.* 8
5,300 Sbarro, Inc.* 153
40,400 Shopko Stores, Inc.* 1,172
18 Sound Advice, Inc.* -
11,000 Sport Supply Group, Inc.* 91
26,600 Sports Authority, Inc.* 85
24,000 Syms Corp.* 179
37,500 Talbots, Inc. 1,685
25,500 TCBY Enterprises, Inc. 116
2,000 Tractor Supply Co.* 38
19,200 Trans World Entertainment* 244
4,158 Ubid, Inc.* 110
7,200 Ugly Duckling Corp.* 51
12,400 United Auto Group, Inc.* 157
4,900 Uno Restaurant Corp.* 58
43,100 Value City Department Stores, Inc.* 647
49,400 Venator Group, Inc.* 423
13,500 Vicorp Restaurants, Inc.* 223
9,400 Wolohan Lumber Co. 122
------------
19,993
------------
SAVINGS & LOANS - 4.4%
16,214 Alliance Bancorp 318
3,400 Ambanc Holding Co., Inc. 54
660 Ameriana Bancorp 11
5,000 American Bank Connecticut 109
14,464 Anchor Bancorp Wisconsin, Inc. 235
8,675 Andover Bancorp, Inc. 261
1,260 Camco Financial Corp. 13
10,050 Coastal Bancorp, Inc. 175
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
SAVINGS & LOANS - 4.4% (CONT'D.)
9,100 Commonwealth Bancorp, Inc. $155
3,400 Community Federal Bancorp, Inc. 57
7,800 Dime Community Bancshares, Inc. 162
43,074 Downey Financial Corp. 867
1,500 Eagle Bancshares, Inc. 28
7,260 ESB Financial Corp. 94
4,766 FFLC Bancorp, Inc. 84
11,200 FFY Financial Corp. 207
2,200 Fidelity Bancorp, Inc. 37
8,000 Fidelity Bankshares, Inc. 128
1,400 First Bell Bancorp, Inc. 22
2,300 First Defiance Financial Corp. 26
10,200 First Essex Bancorp, Inc. 161
2,800 First Federal Bancshares of Arkansas, Inc. 50
12,100 First Federal Capital Corp. 188
18,260 First Indiana Corp. 383
7,200 First Liberty Financial Corp. 203
12,000 First Northern Capital Corp. 134
4,900 First Savings Bancorp, Inc. 99
30,917 First Sentinel Bancorp, Inc. 242
6,710 First Washington Bancorp, Inc. 117
28,800 Firstfed Financial Corp.* 500
4,700 Flushing Financial Corp. 75
11,800 Haven Bancorp, Inc. 189
2,900 Hawthorne Financial Corp.* 39
600 HF Financial Corp. 8
9,050 HMN Financial, Inc. 111
2,500 Home Bancorp 68
5,625 Home Federal Bancorp 120
10,090 Horizon Financial Corp. 114
1,000 Industrial Bancorp, Inc. 18
4,200 ITLA Capital Corp.* 62
13,600 Jefferson Savings Bancorp, Inc. 158
14,400 JSB Financial, Inc. 824
6,100 Klamath First Bancorp, Inc. 77
14,703 MAF Bancorp, Inc. 292
4,866 Massbank Corp. 174
13,200 Medford Bancorp, Inc. 203
3,025 Monterey Bay Bancorp, Inc. 32
700 North Central Bancshares, Inc. 12
7,500 OceanFirst Financial Corp. 123
19,300 Ocwen Financial Corp.* 129
8,264 Ottawa Financial Corp. 170
2,300 Pamrapo Bancorp, Inc. 52
1,500 Parkvale Financial Corp. 29
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
SMALL CAP FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 96.1% (CONT'D.)
SAVINGS & LOANS - 4.4% (CONT'D.)
4,900 Pennfed Financial Services, Inc. $ 74
500 Peoples Bancorp, Inc. 8
400 Permanent Bancorp, Inc. 4
8,500 PFF Bancorp, Inc. 175
7,968 Quaker City Bancorp, Inc. 137
25,987 Queens County Bancorp, Inc. 718
12,900 Reliance Bancorp, Inc. 485
15,400 St. Francis Capital Corp. 317
55,751 St. Paul Bancorp, Inc. 1,275
7,500 Sterling Financial Corp.* 100
25,216 Webster Financial Corp. 643
18,900 Westcorp 282
7,600 Westerfed Financial Corp. 125
2,800 Western Ohio Financial Corp. 49
600 WVS Financial Corp. 8
12,569 York Financial Corp. 181
------------
12,780
------------
SEMICONDUCTORS - 3.2%
800 Align-Rite International, Inc.* 15
56,600 Cirrus Logic, Inc.* 623
48,000 Cypress Semiconductor Corp.* 1,032
24,600 Dallas Semiconductor Corp. 1,315
10,400 Electroglas, Inc.* 243
22,800 ESS Technology* 302
13,600 Exar Corp.* 509
4,900 Integrated Silicon Solutions, Inc.* 48
44,500 International Rectifier Corp.* 679
11,200 Kopin Corp.* 311
6,000 Lam Research Corp.* 366
25,500 Marshall Industries, Inc.* 931
3,000 Mattson Technology, Inc.* 36
29,400 MEMC Electronics Materials, Inc.* 404
1,900 Micro Linear Corp.* 9
1,800 MIPS Technologies, Inc.* 57
18,000 Oak Technology, Inc.* 80
35,400 Pioneer Standard Electronics, Inc. 511
11,400 Richardson Electronics Ltd. 95
36,300 Silicon Valley Group, Inc.* 429
3,800 Siliconix, Inc.* 179
6,150 Triquint Semiconductor, Inc.* 352
28,000 Ultratech Stepper, Inc.* 357
12,200 Watkins-Johnson Co. 409
------------
9,292
------------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
SOFTWARE - 1.9%
3,100 3Dfx Interactive, Inc.* $ 26
1,800 Adept Technology, Inc.* 13
6,600 AVT Corp.* 202
20,700 Banyan Systems, Inc.* 199
2,850 Broadvision, Inc.* 379
18,000 Caere Corp.* 140
3,400 DIGI International, Inc.* 37
3,000 Go2net, Inc.* 194
12,500 Industrial International, Inc.* 66
38,500 Information Resources, Inc.* 426
44,000 Inprise Corp.* 180
4,200 Inso Corp.* 34
16,511 Netmanage, Inc.* 34
8,600 Netopia, Inc.* 343
7,057 Phoenix Technologies Ltd.* 79
5,600 Progress Software Corp.* 176
8,400 QAD, Inc.* 36
15,600 Rainbow Technologies, Inc.* 205
49,500 Santa Cruz Operation, Inc.* 591
245 Schawk, Inc. 2
5,900 Software Spectrum, Inc.* 91
2,700 Trident Microsystems, Inc. 22
1,450 USinternetworking, Inc.* 45
15,000 Verity, Inc.* 1,032
5,300 VerticalNet, Inc.* 196
9,900 Walker Interactive Systems, Inc.* 28
12,600 Wall Data, Inc.* 68
1,900 Ziff-Davis, Inc.* 40
19,800 Zixit Corp.* 587
------------
5,471
------------
TELECOMMUNICATION EQUIPMENT - 2.6%
14,800 Allen Telecom, Inc.* 144
49,100 Antec Corp.* 2,608
17,700 Aspect Telecommunications Corp.* 300
9,600 Centigram Communications Corp.* 105
48,000 Commscope, Inc.* 1,560
12,500 Corsair Communications, Inc.* 88
11,625 EMS Technologies, Inc.* 140
72,800 Glenayre Technologies, Inc.* 218
13,200 Interdigital Communications Corp.* 73
9,300 NetOptix Corp.* 201
28,700 Network Equipment Technologies, Inc.* 264
5,400 Northeast Optic Network, Inc.* 204
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
TELECOMMUNICATION EQUIPMENT - 2.6% (CONT'D.)
3,300 Ortel Corp.* $ 51
43,800 Pairgain Technologies, Inc.* 558
5,800 Periphonics Corp.* 182
4,100 Proxim, Inc.* 189
16,900 Spectralink Corp.* 77
8,000 Stanford Telecommunications, Inc.* 255
9,100 Symmetricom, Inc.* 68
6,900 Vertex Communications Corp.* 77
30,882 VTEL Corp.* 114
15,503 World Access, Inc.* 173
------------
7,649
------------
TELECOMMUNICATIONS - 1.5%
22,200 Adaptive Broadband Corp.* 744
17,400 Aerial Communications, Inc.* 472
7,000 Commonwealth Telephone Enterprise, Inc.* 308
7,400 Davel Communications Group, Inc. 29
7,800 IDT Corp.* 163
6,500 ITC Deltacom, Inc.* 179
900 Lych Interactive Corp.* 68
45,625 Metrocall, Inc.* 57
4,850 Omnipoint Corp.* 271
36,500 Powertel, Inc.* 2,010
------------
4,301
------------
TELEPHONE - 0.2%
6,680 Atlantic Tele-Network, Inc.* 65
12,877 Roseville Communications Co. 438
1,250 Viatel, Inc.* 37
------------
540
------------
TEXTILES - 0.2%
12,400 Angelica Corp. 143
1,100 Conso International Corp.* 6
11,400 Dixie Group, Inc. 88
31,500 Guilford Mills, Inc. 272
4,462 Pillowtex Corp. 33
14,400 Unifirst Corp. 198
------------
740
------------
TRANSPORTATION - 3.5%
19,200 American Freightways Corp.* 349
26,500 Arkansas Best Corp.* 328
14,400 Arnold Industries, Inc. 182
19,600 Circle International Group, Inc. 401
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
TRANSPORTATION - 3.5% (CONT'D.)
14,200 Consolidated Freightways Corp.* $ 140
48,100 Fritz Cos., Inc.* 499
22,800 Frozen Food Express Industries, Inc. 140
4,700 FRP Properties, Inc.* 111
55,000 Hunt (J.B.) Transport Services, Inc. 763
33,000 Kirby Corp.* 648
1,200 Kitty Hawk, Inc.* 12
6,400 Landstar System, Inc.* 222
17,200 Maritrans, Inc.* 88
17,300 M.S. Carriers, Inc.* 415
28,800 Offshore Logistics, Inc.* 297
11,300 Old Dominion Freight Line, Inc.* 167
55,950 Overseas Shipholding Group, Inc. 864
12,400 Railtex, Inc.* 205
27,900 Roadway Express, Inc. 563
51,900 Teekay Shipping Corp. 811
32,000 U. S. Freightways Corp. 1,516
56,687 Werner Enterprises, Inc. 999
38,900 Yellow Corp.* 644
------------
10,364
------------
TRUCKING & LEASING - 1.5%
51,300 AMERCO, Inc.* 1,465
19,200 Greenbrier Cos., Inc. 212
37,350 Interpool, Inc. 285
8,100 PS Group Holdings, Inc. 86
73,700 Rollins Truck Leasing Corp. 746
38,700 Xtra Corp. 1,538
------------
4,332
------------
WATER - 1.4%
14,200 American States Water Co. 470
9,900 Aquarion Co. 355
8,400 California Water Service Group 230
10,700 E'town Corp. 531
13,684 Philadelphia Suburban Corp. 322
4,300 SJW Corp. 389
58,268 United Water Resources, Inc. 1,901
------------
4,198
------------
Total Common Stocks
(cost $250,022) 280,525
------------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
SMALL CAP FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
WARRANTS - 0.0%
7,778 Arch Communications Group, Inc.,
Exp. 2/18/00* $ 1
50 Xytronix, Inc., Class B,
Exp. 8/11/01* -
8 York Research Corp., Class B,
Exp. 11/30/99* -
------------
Total Warrants
(cost $0) 1
------------
OTHER - 0.0%
10,000 Escrow American Medical
Electronics, Inc.* -
220 Millicom American Satellite,
300 Escrow Northeast Bancorp, Inc.* -
4,500 Escrow Strawbridge & Clothier, Inc.* -
------------
Total Other
(cost $0) -
------------
PRINCIPAL
AMOUNT
(000's)
- -----------
SHORT-TERM INVESTMENTS - 3.3%
$7,938 Banco Popular, Puerto Rico,
Eurodollar Time Deposit,
5.688%, 10/1/99 7,938
1,570 U.S. Treasury Bill,
4.68%, 1/6/00<F1> 1,551
------------
Total Short-Term Investments
(cost $9,489) 9,489
------------
Total Investments - 99.4% 290,015
(cost $259,511)
Other Assets less Liabilities - 0.6% 1,832
------------
NET ASSETS - 100.0% $291,847
============
OPEN FUTURES CONTRACTS:
Notional Unrealized
Number of Amount Contract Contract Loss
Type Contracts (000s) Position Exp. (000s)
- --------------------------------------------------------------------------
Russell 2000 41 $1,718,000 Long 12/99 $(309)
S&P/Barra Value 16 283,000 Long 12/99 (132)
---------
$(441)
========
<F1> Security pledged as collateral to cover margin requirements for open
futures contracts.
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
INTERNATIONAL GROWTH EQUITY FUND
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 89.6%
AUSTRIA - 1.0%
62,000 VA Technologie A.G. $ 4,981
------------
CHINA - 0.6%
4,800,000 Huaneng Power International, Inc.,
H Shares 1,452
8,500,000 Qingling Motors Co. 1,630
------------
3,082
------------
FINLAND - 1.1%
150,000 UPM-Kymmene Oyj 5,112
------------
FRANCE - 8.0%
40,000 Axa - UAP 5,061
27,000 Cap Gemini S.A. 4,256
54,000 Lafarge S.A. 5,969
18,000 LVMH - Moet Hennessy Louis Vuitton 5,396
37,000 Suez Lyonnaise des Eaux 5,989
125,000 Total Fina S.A. ADR 7,930
65,000 Vivendi (Ex-Generale des Eaux) 4,565
------------
39,166
------------
GERMANY - 7.4%
67,000 Adidas-Salomon A.G. 5,697
100,000 BASF A.G. 4,260
192,400 Bayerische Motoren Werke (BMW) A.G. 5,430
135,000 Hoechst A.G. 5,880
30,000 Mannesmann A.G. 4,792
82,000 SGL Carbon A.G. 5,633
55,000 Siemens A.G. 4,542
------------
36,234
------------
GREECE - 1.2%
240,000 Hellenic Telecommunications
Organization S.A. 5,601
------------
HONG KONG - 1.1%
1,100,000 Beijing Enterprises Holdings Ltd. 1,841
2,497,000 China Resources Enterprise Ltd. 3,391
------------
5,232
------------
INDIA - 0.5%
220,000 Mahanagar Telephone Nigam Ltd. GDR 2,228
------------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
ITALY - 3.1%
575,000 Bulgari S.p.A. $ 4,280
1,225,000 ENI S.p.A. 7,684
160,000 Luxottica Group S.p.A. ADR 3,050
------------
15,014
------------
JAPAN - 30.0%
765,000 Asahi Bank Ltd. 5,497
1,200,000 Asahi Chemical Industry Co. 6,684
649,000 Fuji Bank Ltd. 7,888
48,000 Fuji Soft ABC, Inc. 4,089
100,000 Fujitsu Ltd. 3,118
225,000 Isetan Co. Ltd. 1,775
62,000 Jafco Co. Ltd. 5,212
185,000 Jusco Co. Ltd. 3,484
3,000,000 Kawasaki Steel Corp. 6,960
20,000 Keyence Corp. 5,354
180,000 Kissei Pharmaceutical Co. Ltd. 3,931
1,100,000 Komatsu Ltd. 7,294
1,000,000 Mazda Motor Corp. 5,015
440,000 Mitsubishi Estate Co. Ltd. 4,467
785,000 Mitsui & Co. Ltd. 5,943
250,000 NEC Corp. 5,037
685,000 Nikko Securities Co. Ltd. 5,790
275,000 Nikon Corp. 5,295
200 NTT Mobile Communications
Network, Inc. 3,945
250,000 Omron Corp. 4,943
335,000 Onward Kashiyama Co. Ltd. 5,097
300,000 Ricoh Corp. Ltd. 5,213
180,000 Sankyo Co. Ltd. 5,410
430,000 Sanwa Bank Ltd. 5,755
475,000 Sekisui House Ltd. 5,363
260,000 Sumitomo Bank Ltd. 3,907
520,000 Sumitomo Electric Industries 7,131
80,000 Taiyo Yuden Co. Ltd. 2,645
375,000 Takashimaya Co. Ltd. 3,839
------------
146,081
------------
NETHERLANDS - 8.2%
73,000 ASM Lithography Holding N.V.* 4,896
315,000 Buhrmann N.V. 5,300
110,000 Getronics N.V. 5,933
62,000 Gucci Group N.V. ADR 5,177
91,000 ING Groep N.V. 4,942
35,000 STMicroelectronics N.V. 2,590
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
INTERNATIONAL GROWTH EQUITY FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 89.6%
NETHERLANDS - 8.2% (CONT'D.)
82,000 Unilever N.V. $ 5,586
154,000 VNU N.V. 5,346
------------
39,770
------------
NORWAY - 2.0%
850,000 Den Norske Bank A.S.A. 3,355
150,000 Norsk Hydro A.S.A. 6,346
------------
9,701
------------
PHILIPPINES - 1.0%
8,500,000 Ayala Land Inc. 2,078
140,000 Philippine Long Distance Telephone Co. 3,029
------------
5,107
------------
PORTUGAL - 0.9%
105,000 Portugal Telecom S.A. 4,370
------------
SOUTH KOREA - 0.4%
135,000 Korea Electric Power Corp. ADR 2,168
------------
SWEDEN - 0.9%
202,000 SKF AB 4,534
------------
SWITZERLAND - 4.6%
15,000 Clariant A.G. 6,797
60,000 New ABB Ltd. 6,198
6,300 Novartis A.G. 9,345
------------
22,340
------------
THAILAND - 0.6%
500,000 BEC World Public Co. Ltd. 2,712
------------
UNITED KINGDOM - 17.0%
140,000 AstraZeneca Group PLC ADR 5,915
40,000 BP Amoco PLC ADR 4,432
875,000 British Aerospace PLC 5,768
330,000 British Land Company PLC 2,576
350,000 British Sky Broadcasting Group PLC 3,386
525,000 Canary Wharf Finance PLC* 3,039
105,000 Glaxo Wellcome PLC ADR 5,460
520,000 Halifax Group PLC 6,538
365,000 HSBC Holdings PLC 4,184
395,000 Imperial Chemical Industries PLC 4,381
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
UNITED KINGDOM - 17.0% (CONT'D.)
885,000 Invensys PLC $ 4,314
190,000 Pearson PLC 4,077
575,000 Powergen PLC 5,857
649,998 Royal & Sun Alliance Insurance
Group PLC 5,128
310,000 Rio Tinto PLC 5,376
575,000 Scottish & Newcastle PLC 5,715
905,000 TI Group PLC 6,618
------------
82,764
------------
Total Common Stocks
(cost $391,176) 436,197
------------
PRINCIPAL
AMOUNT
(000S)
- -----------
SHORT-TERM INVESTMENTS - 8.8%
(Cost $42,697)
42,697 Banco Popular, Puerto Rico,
Eurodollar Time Deposits,
5.688%, 10/1/99 42,697
------------
Total Investments - 98.4%
(cost $433,873) 478,894
Other Assets less Liabilities - 1.6% 7,651
------------
NET ASSETS - 100.0% $486,545
============
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
At September 30, 1999, the International Growth Equity Fund's investments were
diversified as follows:
Industry Sector
- -----------------------------------------
Auto 2.7%
Basic Industries/Energy 7.7
Basic Materials 3.1
Building 1.4
Capital Goods 13.9
Chemicals 3.6
Communications 0.9
Conglomerates 2.6
Consumer Goods 10.2
Financial Services 14.1
Media 0.6
Pharmaceuticals 3.5
Real Estate 4.3
Retail 7.7
Support Services 1.2
Technology 11.3
Telecommunications 1.7
Utilities 3.1
Other 6.4
-------
Total 100.0%
=======
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
INTERNATIONAL SELECTEQUITY FUND
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 90.9%
AUSTRIA - 1.5%
30,000 VA Technologie A.G. $ 2,410
------------
FRANCE - 9.2%
18,000 Axa - UAP 2,277
14,000 Cap Gemini S.A. 2,207
24,000 Lafarge S.A. 2,653
8,000 LVMH - Moet Hennessy Louis Vuitton 2,398
50,000 Total Fina S.A. ADR 3,172
30,000 Vivendi (Ex-Generale des Eaux) 2,107
------------
14,814
------------
GERMANY - 9.2%
25,000 Adidas-Salomon A.G. 2,126
60,000 BASF A.G. 2,556
91,000 Bayerische Motoren Werke (BMW) A.G. 2,568
60,000 Hoechst A.G. 2,613
14,000 Mannesmann A.G. 2,236
40,000 SGL Carbon A.G. 2,748
------------
14,847
------------
GREECE - 1.5%
105,000 Hellenic Telecommunications
Organization S.A. 2,450
------------
HONG KONG - 1.9%
700,000 Beijing Enterprises Holdings Ltd. 1,172
1,400,000 China Resources Enterprise Ltd. 1,901
------------
3,073
------------
ITALY - 1.8%
450,000 ENI S.p.A. 2,823
------------
INDIA - 0.9%
150,000 Mahanagar Telephone Nigam Ltd. GDR 1,519
------------
JAPAN - 31.0%
325,000 Fuji Bank Ltd. 3,950
40,000 Fuji Soft ABC, Inc. 3,408
80,000 Fujitsu Ltd. 2,495
35,000 Jafco Co. Ltd. 2,942
12,000 Keyence Corp. 3,212
90,000 Kissei Pharmaceutical Co. Ltd. 1,965
425,000 Mitsui & Co. Ltd. 3,217
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
JAPAN - 31.0% (CONT'D.)
170,000 NEC Corp. $ 3,425
125,000 Nikon Corp. 2,407
175 NTT Mobile Communications
Network, Inc. 3,452
160,000 Omron Corp. 3,163
180,000 Onward Kashiyama Co. Ltd. 2,739
270,000 Sanwa Bank Ltd. 3,614
210,000 Sekisui House Ltd. 2,371
250,000 Sumitomo Electric Industries 3,428
55,000 Taiyo Yuden Co. Ltd. 1,818
220,000 Takashimaya Co. Ltd. 2,252
------------
49,858
------------
NETHERLANDS - 8.9%
35,000 ASM Lithography Holding N.V.* 2,347
50,000 Getronics N.V. 2,697
45,000 ING Groep N.V. 2,444
25,000 STMicroelectronics N.V. 1,850
70,000 Vedior N.V. 2,430
30,000 Gucci Group N.V. 2,505
------------
14,273
------------
PHILIPPINES - 1.5%
5,000,000 Ayala Land, Inc. 1,223
55,000 Philippine Long Distance Telephone Co. 1,190
------------
2,413
------------
PORTUGAL - 1.3%
50,000 Portugal Telecom S.A. 2,081
------------
SOUTH KOREA - 0.9%
85,000 Korea Electric Power Corp. ADR 1,365
------------
SWITZERLAND - 5.0%
29,178 ABB A.G. Bearer 3,014
5,000 Clariant A.G. 2,266
1,800 Novartis A.G. 2,670
------------
7,950
------------
THAILAND - 1.2%
350,000 BEC World Public Co. Ltd. 1,899
------------
UNITED KINGDOM - 15.1%
20,000 BP Amoco PLC ADR 2,307
350,000 British Aerospace PLC 2,216
See Notes to the Financial Statements.
<PAGE>
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
UNITED KINGDOM - 15.1% (CONT'D.)
220,000 British Sky Broadcasting Group PLC $ 2,129
400,000 Canary Wharf Finance PLC* 2,315
50,000 Glaxo Wellcome PLC ADR 2,600
250,000 Halifax Group PLC 3,143
500,000 Invensys PLC 2,437
100,000 Pearson PLC 2,146
400,000 TI Group PLC 2,925
225,000 Unilever N.V. 2,118
------------
24,336
------------
Total Common Stocks
(cost $127,703) 146,111
------------
PRINCIPAL
AMOUNT
(000S)
- -----------
SHORT-TERM INVESTMENTS - 9.4%
(cost $15,113)
$15,113 Banco Popular, Puerto Rico,
Eurodollar Time Deposits,
5.688% 10/1/99 15,113
------------
Total Investments - 100.3%
(cost $142,816) 161,224
Liabilities less Other Assets - (0.3)% (478)
------------
NET ASSETS - 100.0% $160,746
============
At September 30, 1999, the International Select Equity Fund's investments were
diversified as follows:
Industry
Sector
- -----------------------------------------
Auto 1.8%
Basic Industries/Energy 4.0
Basic Materials 1.8
Building 1.8
Capital Goods 15.6
Chemicals 3.4
Communications 2.4
Conglomerates 1.3
Consumer Goods 11.4
Electricals 3.6
Engineering 1.7
Financial Services 12.6
Food/Beverage 1.7
Media 1.3
Oil 1.9
Pharmaceuticals 1.4
Real Estate 4.0
Retail 7.0
Services 2.3
Technology 9.7
Telecommunications 2.1
Transportation 0.8
Utilities 2.4
Other 4.0
-------
Total 100.0%
=======
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
TECHNOLOGY FUND
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 99.4%
COMPUTERS - 17.7%
81,000 Apple Computer, Inc. $ 5,128
15,170 Ariba Inc. 2,192
532,200 Dell Computer Corp.* 22,253
454,400 EMC Corp.* 32,461
203,600 Electronic Data Systems 10,778
5,255 Foundry Networks, Inc. 662
254,500 Hewlett-Packard Co. 23,414
210,500 International Business Machines Corp. 25,549
10,435 Juniper Networks 1,910
438,300 Sun Microsystems Inc.* 40,763
------------
165,110
------------
ELECTRONICS - 3.9%
25,900 Sanmina Corp.* 2,004
438,100 Solectron Corp.* 31,461
30,000 Vitesse Semiconductor Corp. 2,561
------------
36,026
------------
HEALTH CARE - 0.1%
44,000 Cerus Corp.* 1,023
------------
MACHINERY - DIVERSIFIED - 2.9%
345,700 Applied Materials, Inc.* 26,921
------------
PHARMACEUTICALS - 0.1%
25,000 Pharmacyclics, Inc. 1,022
------------
RETAIL - 2.9%
200,000 Amazon.com, Inc.* 15,987
14,035 Chemdex Corp. 432
60,000 eBay, Inc.* 8,464
69,000 UBid, Inc. 1,820
------------
26,703
------------
SEMICONDUCTORS - 25.8%
100,000 Altera Corp.* 4,338
120,400 Atmel Corp. 4,071
206,500 Broadcom Corp. 22,509
299,900 Intel Corp. 22,286
70,000 Linear Technology Corp. 4,115
71,900 LSI Logic Corp.* 3,703
344,400 Micron Technology, Inc. 22,924
307,400 Motorola, Inc. 27,051
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
SEMICONDUCTORS - 25.8% (CONT'D.)
597,000 National Semiconductor Corp.* $ 18,209
452,600 STMicroelectronics N.V.* 33,492
418,300 Texas Instruments, Inc. 34,405
659,200 Xilinx, Inc.* 43,199
------------
240,302
------------
SOFTWARE & SERVICES - 26.3%
14,344 Agile Software Corp. 918
347,971 America Online, Inc.* 36,189
223,100 Automatic Data Processing, Inc. 9,956
54,546 Backweb Technologies 927
430,400 Computer Associates International, Inc. 26,362
32,800 Computer Sciences Corp.* 2,306
399,300 Electronic Arts, Inc.* 28,899
351,300 First Data Corp. 15,413
108,793 Homestore.com, Inc. 4,535
15,238 Internap Network Services 680
257,700 Intuit, Inc.* 22,589
4,364 Kana Communications, Inc. 218
247,900 Microsoft Corp.* 22,450
23,212 Netzero, Inc. 604
642,620 Oracle Corp.* 29,239
616,600 Peoplesoft, Inc.* 10,444
35,206 Siebel Systems, Inc.* 2,346
9,804 Silver Stream Software, Inc. 305
170,600 Yahoo!, Inc.* 30,623
------------
245,003
------------
TELECOMMUNICATION EQUIPMENT - 14.1%
401,986 Cisco Systems, Inc.* 27,561
53,000 JDS Uniphase Corp. 6,032
274,010 Lucent Technologies, Inc. 17,776
90,000 Metromedia Fiber Network, Inc. 2,205
685,800 Nortel Networks Corp. 34,976
501,400 Tellabs, Inc. 28,548
476,000 3Com Corp.* 13,685
------------
130,783
------------
TELECOMMUNICATIONS - 3.7%
53,000 Level 3 Communications, Inc. 2,768
255,000 McLeod USA, Inc. 10,853
165,000 Nextel Communications, Inc. 11,189
130,000 Sprint Corp. (PCS Group) 9,693
------------
34,503
------------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
TELEPHONE - 1.9%
227,692 Focal Communications Corp. $ 5,835
132,000 Nextlink Communications 6,843
85,000 Sprint Corp. (FON Group) 4,611
------------
17,289
------------
Total Common Stocks
(cost $617,841) 924,685
------------
PRINCIPAL
AMOUNT
(000'S)
- -----------
SHORT-TERM INVESTMENT - 1.5%
(cost $14,176)
$14,176 Banco Popular, Puerto Rico
Eurodollar Time Deposits,
5.688%, 10/1/99 14,176
------------
Total Investments - 100.9%
(cost $632,017) 938,861
Liabilities less Other Assets - (0.9)% (8,449)
------------
NET ASSETS - 100.0% $930,412
============
See Notes to the Financial Statements.
<PAGE>
NOTES TO THE
FINANCIAL STATEMENTS
SEPTEMBER 30, 1999
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. The Money Market, U.S. Government Money Market,
U.S. Government Select Money Market, Municipal Money Market, California
Municipal Money Market, U.S. Government, Intermediate Tax-Exempt, Florida
Intermediate Tax-Exempt, Fixed Income, Tax-Exempt, California Tax-Exempt,
International Fixed Income, High Yield Municipal, High Yield Fixed Income,
Income Equity, Stock Index, Growth Equity, Select Equity, Mid Cap Growth, Small
Cap Index, Small Cap, International Growth Equity, International Select Equity
and Technology Funds (collectively the "Funds") are separate, diversified
investment portfolios of Northern Funds, except the California Municipal Money
Market, Florida Intermediate Tax-Exempt, California Tax-Exempt and International
Fixed Income Funds which are non-diversified portfolios 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"). Additionally,
Northern Trust Quantitative Advisors, Inc., a wholly-owned subsidiary of
Northern Trust Corporation, serves as the investment adviser for the Stock
Index, Small Cap and Small Cap Index Funds. 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. Securities which
are traded on a recognized U.S. or foreign securities exchange are
generally valued at the last quoted sales price on the securities exchange
on which the securities are primarily traded. If securities traded on a
foreign securities exchange are not traded on a valuation date, they will
be valued at the most recent quoted sales price. Securities that are traded
in the U.S. over-the-counter markets, absent a last quoted sales price, are
valued at the last quoted bid price. Securities which are traded in the
foreign over-the-counter markets are generally valued at the last sales
price. Insurance funding agreements 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 FUTURES CONTRACTS - Certain Funds may enter into long financial futures
contracts to maintain liquidity or short financial futures contracts for
hedging purposes. These Funds may also enter into futures contracts for
speculative purposes. Futures contracts are valued based upon their quoted
daily settlement prices; changes in initial settlement value are accounted
for as unrealized appreciation (depreciation) until the contracts are
terminated at which time realized gains and losses are recognized.
A Fund bears the market risk arising from changes in the value of these
financial instruments. At the time a Fund enters into a futures contract,
it is required to make a margin deposit in a segregated account of a
specified amount of cash or eligible securities. Subsequently, as the
market price of the futures contract fluctuates, gains and losses are
recognized and payments are made, on a daily
<PAGE>
NORTHERN FUNDS Semiannual Report
basis, between the Fund and the broker. The Statements of Operations
reflect gains and losses as realized for closed futures contracts and as
unrealized for open contracts. At September 30, 1999, the Stock Index and
Small Cap Funds had entered into exchange-traded long futures contracts and
the aggregate market value of securities pledged to cover margin
requirements for open positions was approximately $879,000 and $1,551,000
respectively.
D STRIPPED SECURITIES - Stripped securities represent the right to receive
future interest payments (interest only stripped securities) or principal
payments (principal only stripped securities). The value of variable rate
interest only stripped securities varies directly with changes in interest
rates, while the value of fixed rate interest only stripped securities and
the value of principal only stripped securities vary inversely with changes
in interest rates.
E FOREIGN CURRENCY TRANSLATIONS - Values of investments denominated in
foreign currencies are converted into U.S. dollars using the spot market
rate of exchange at the time of valuation. Purchases and sales of
investments, interest and dividend income are translated into U.S. dollars
using the spot market rate of exchange prevailing on the respective dates
of such transactions. The gains or losses on investments resulting from
changes in foreign exchange rates are included with net realized and
unrealized gains (losses) on investments.
F FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS - Certain Funds are authorized
to enter into forward foreign currency exchange contracts for the purchase
of a specific foreign currency at a fixed price on a future date as a hedge
against either specific transactions or portfolio positions, or as a cross-
hedge transaction or for speculative purposes. The objective of a Fund's
foreign currency hedging transactions is to reduce the risk that the U.S.
dollar value of a Fund's foreign currency denominated securities will
decline in value due to changes in foreign currency exchange rates. All
forward foreign currency contracts are "marked-to-market" daily at the
applicable translation rates and any resulting unrealized gains or losses
are recorded in a Fund's financial statements. A Fund records realized
gains or losses at the time the forward contract is offset by entering into
a closing transaction or extinguished by delivery of the currency. Risks
may arise upon entering into these contracts from the potential inability
of counterparties to meet the terms of their contracts and from
unanticipated movements in the value of a foreign currency relative to the
U.S. dollar. The contractual amounts of forward foreign currency exchange
contracts do not necessarily represent the amounts potentially subject to
risk. The measurement of the risks associated with these instruments is
meaningful only when all related and offsetting transactions are
considered.
At September 30, 1999, there were no outstanding contracts.
G 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. Dividend
income is recognized on the ex-dividend date and interest income is
recognized on an accrual basis and includes amortization of discounts and
premiums. Dividends from foreign securities are recorded on ex-date, or as
soon as the information is available.
H 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.
<PAGE>
I DISTRIBUTIONS TO SHAREHOLDERS - Dividends from net investment income are
declared and paid as follows:
DECLARATION PAYMENT
FREQUENCY FREQUENCY
- -----------------------------------------------------------------------------
Money Market Daily Monthly
U.S. Government Money
Market Daily Monthly
U.S. Government Select
Money Market Daily Monthly
Municipal Money Market Daily Monthly
California Municipal
Money Market Daily Monthly
U.S. Government Daily Monthly
Intermediate Tax-Exempt Daily Monthly
Florida Intermediate
Tax-Exempt Daily Monthly
Fixed Income Daily Monthly
Tax-Exempt Daily Monthly
California Tax-Exempt Daily Monthly
International Fixed Income Quarterly Quarterly
High Yield Municipal Monthly Monthly
High Yield Fixed Income Monthly Monthly
Income Equity Monthly Monthly
Stock Index Quarterly Quarterly
Growth Equity Quarterly Quarterly
Select Equity Annually Annually
Mid Cap Growth Quarterly Quarterly
Small Cap Index Annually Annually
Small Cap Annually Annually
International Growth Equity Annually Annually
International Select Equity Annually Annually
Technology Annually Annually
- -----------------------------------------------------------------------------
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 foreign currency
transactions, deferral of wash sales and 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.
During the year ended September 30, 1999, all of the dividends derived from
net investment income paid by each of the Municipal Money Market, California
Municipal Money Market, Intermediate Tax-Exempt, Florida Intermediate Tax-
Exempt, Tax-Exempt and California Tax-Exempt Funds were "exempt-interest
dividends," excludable from gross income for Federal income tax purposes.
Further, all such dividends paid by the California Municipal Money Market and
California Tax-Exempt Funds were "California exempt-interest dividends," exempt
from California state personal income tax.
J 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 and to distribute
substantially all of their taxable income to their shareholders.
<PAGE>
NORTHERN FUNDS Semiannual Report
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, 1999, 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%
U.S. Government 0.75% 0.75% 0.90%
Intermediate
Tax-Exempt 0.75% 0.70% 0.85%
Florida Intermediate
Tax-Exempt 0.75% 0.70% 0.85%
Fixed Income 0.75% 0.75% 0.90%
Tax-Exempt 0.75% 0.70% 0.85%
California Tax-Exempt 0.75% 0.70% 0.85%
International Fixed
Income 0.90% 0.90% 1.15%
High Yield Municipal 0.75% 0.70% 0.85%
High Yield Fixed Income 0.75% 0.75% 0.90%
Income Equity 1.00% 0.85% 1.00%
Stock Index 0.60% 0.40% 0.55%
Growth Equity 1.00% 0.85% 1.00%
Select Equity 1.20% 0.85% 1.00%
Mid Cap Growth 1.00% 0.85% 1.00%
Small Cap Index 0.65% 0.50% 0.65%
Small Cap 1.20% 0.85% 1.00%
International Growth
Equity 1.20% 1.00% 1.25%
International Select
Equity 1.20% 1.00% 1.25%
Technology 1.20% 1.00% 1.25%
- ------------------------------------------------------------------------------
Until October 1, 1999, the Funds had 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, 1999,
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, 1999, the Small Cap Index Fund had an outstanding
borrowing of $1,200,000. Minimal interest expense was incurred for the period
then ended.
<PAGE>
5. INVESTMENT TRANSACTIONS
The aggregate purchases and sales of securities, excluding short-term
investments, for the Funds for the six months ended September 30, 1999 were as
follows:
<TABLE>
<CAPTION>
PURCHASES SALES
---------------------------------- ------------------------------------
U.S. U.S.
AMOUNTS IN THOUSANDS GOVERNMENT OTHER GOVERNMENT OTHER
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Government $48,485 $ - $38,300 $-
Intermediate Tax-Exempt - 96,338 - 72,019
Florida Intermediate Tax-Exempt - 17,773 - 15,881
Fixed Income 80,856 82,437 78,434 26,928
Tax-Exempt - 200,549 - 175,905
California Tax-Exempt - 25,010 - 19,956
International Fixed Income 1,040 965 - 478
High Yield Municipal - 10,566 - 1,003
High Yield Fixed Income - 88,816 - 26,469
Income Equity - 150,514 - 51,044
Stock Index - 152,847 - 2,400
Growth Equity - 521,615 - 218,688
Select Equity - 166,731 - 121,165
Mid Cap Growth - 276,743 - 142,036
Small Cap Index - 140,743 - 3,322
Small Cap - 27,920 - 43,956
International Growth Equity - 363,020 - 181,853
International Select Equity - 97,138 - 88,173
Technology - 486,379 - 145,493
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
At September 30, 1999, for federal tax purposes, gross unrealized
appreciation, gross unrealized depreciation, net unrealized appreciation
(depreciation) on investments (including the effects of foreign currency
translation) and cost basis of securities were as follows:
<TABLE>
<CAPTION>
NET COST
UNREALIZED UNREALIZED APPRECIATION BASIS OF
AMOUNTS IN THOUSANDS APPRECIATION DEPRECIATION (DEPRECIATION) SECURITIES
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Government $154 $4,686 $(4,532) $262,918
Intermediate Tax-Exempt 2,521 6,677 (4,156) 366,392
Florida Intermediate Tax-Exempt 98 769 (671) 40,657
Fixed Income 252 13,316 (13,064) 332,555
Tax-Exempt 2,490 5,983 (3,493) 242,481
California Tax-Exempt 211 2,859 (2,648) 78,047
International Fixed Income 481 545 (64) 15,482
High Yield Municipal 4 792 (788) 17,541
High Yield Fixed Income 351 2,892 (2,541) 103,300
Income Equity 26,404 11,026 15,378 212,475
Stock Index 182,116 10,407 171,709 291,224
Growth Equity 341,139 25,048 316,091 763,291
Select Equity 58,645 5,088 53,557 195,489
Mid Cap Growth 37,070 6,643 30,427 210,847
Small Cap Index 24,897 26,251 (1,354) 137,852
Small Cap 66,053 35,990 30,063 259,511
International Growth Equity 57,437 12,416 45,021 433,873
International Select Equity 22,780 4,372 18,408 142,816
Technology 318,086 11,242 306,844 632,017
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
At March 31, 1999, the funds' fiscal year end, the Mid Cap Growth Fund had
capital loss carryforwards, for income tax purposes, of approximately
$4,222,000, due to expire March 31, 2007. These capital loss carryforwards are
available to offset future gains.
<PAGE>
NORTHERN FUNDS Semiannual Report
6. CAPITAL SHARE TRANSACTIONS
Transactions of shares of the Funds for the six months ended September 30, 1999
were as follows:
<TABLE>
<CAPTION>
NET
ISSUED UPON REINVESTMENT INCREASE
AMOUNTS IN THOUSANDS SOLD CONVERSION OF DIVIDENDS REDEEMED (DECREASE)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
U.S. Government 2,695 - 58 2,980 (227)
Intermediate Tax-Exempt 4,800 - 51 2,016 2,835
Florida Intermediate Tax-Exempt 744 - 13 620 137
Fixed Income 8,057 - 118 2,198 5,977
Tax-Exempt 3,194 - 36 2,033 1,197
California Tax-Exempt 1,574 - 34 1,291 317
International Fixed Income 264 - 2 61 205
High Yield Municipal 928 - - 132 796
High Yield Fixed Income 7,200 - 47 843 6,404
Income Equity 737 9,504 16 1,114 9,143
Stock Index 3,334 14,818 16 1,332 16,836
Growth Equity 3,310 21,398 1,438 2,736 23,410
Select Equity 2,995 - - 1,055 1,940
Mid Cap Growth 12,912 - - 342 12,570
Small Cap Index 1 14,297 - 323 13,975
Small Cap 2,900 - - 3,619 (719)
International Growth Equity 5,487 14,322 1,593 1,693 19,709
International Select Equity 1,831 - - 635 1,196
Technology 6,215 10,530 1,133 1,445 16,433
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Transactions of shares of the Funds for the year ended March 31, 1999 were as
follows:
<TABLE>
<CAPTION>
NET
REINVESTMENT INCREASE
AMOUNTS IN THOUSANDS SOLD OF DIVIDENDS REDEEMED (DECREASE)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Government 8,963 718 5,473 4,208
Intermediate Tax-Exempt 6,757 391 2,665 4,483
Florida Intermediate Tax-Exempt 1,769 55 700 1,124
Fixed Income 21,526 727 12,591 9,662
Tax-Exempt 10,243 433 4,815 5,861
California Tax-Exempt 4,589 98 1,303 3,384
International Fixed Income 219 17 248 (12)
High Yield Municipal 1,024 - 22 1,002
High Yield Fixed Income 4,057 6 19 4,044
Income Equity 1,957 474 1,648 783
Stock Index 6,696 104 3,298 3,502
Growth Equity 5,911 1,437 3,895 3,453
Select Equity 3,384 327 1,806 1,905
Mid Cap Growth 6,928 - 328 6,600
Small Cap 7,288 803 8,617 (526)
International Growth Equity 8,329 613 7,068 1,874
International Select Equity 4,499 381 4,684 196
Technology 7,041 193 1,873 5,361
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
7. CONVERSION FROM NORTHERN COMMON TRUST FUNDS
On September 3, 1999 and October 1, 1999 (subsequent to the semiannual period
ended September 30) Northern Trust converted six equity and ten fixed income
common trust funds, respectively, into existing or new comparable Northern
Funds. These conversions were tax-free for federal income tax purposes. The
following is a summary of the net assets and shares converted (amounts in
thousands):
NORTHERN NET ASSETS SHARES
COMMON TRUST FUND FUND CONVERTED CONVERTED
- --------------------------------------------------------------------------------
September 3, 1999 Conversion:
Income Equity Fund Income Equity Fund $123,163 9,504
Market Equity Fund Stock Index Fund 271,446 14,818
Growth Equity Fund Growth Equity Fund 458,132 21,398
Small Capitalization Fund Small Cap Index Fund<F1> 142,973 14,297
Global Growth Fund International Growth
Focused Growth Equity Fund 191,041 14,322
Technology Fund Technology Fund 359,270 10,530
October 1, 1999 Conversion:
1986 Government Bond Fund
and Government Bond Fund U.S. Government Fund $112,138 11,422
Intermediate Government Short-Intermediate U.S.
Bond Fund Government Fund<F1> 60,337 6,034
Intermediate Tax-Exempt Intermediate
Bond Fund Tax-Exempt Fund 363,331 36,215
Intermediate California California Intermediate
Tax-Exempt Bond Fund Tax-Exempt Fund<F1> 79,836 7,986
Taxable Bond Fund Fixed Income Fund 293,695 30,234
Tax-Exempt Bond Fund Tax-Exempt Fund 327,321 32,683
Arizona Tax-Exempt Arizona
Bond Fund Tax-Exempt Fund<F1> 56,205 5,621
California Tax-Exempt California
Bond Fund Tax-Exempt Fund 60,293 5,865
International Government International Fixed
Bond Fund Income Fund 5,714 567
<F1> Fund commenced operations upon conversion
8. SUBSEQUENT EVENTS
On October 1, 1999, Northern Trust and First Data Investor Services Group, Inc.
became the Funds' co-administrators. Prior to October 1, 1999, Sunstone
Financial Group, Inc. served as the Funds' administrator.
On October 1, 1999, Northern Funds Distributors, LLC, the Funds' distributor,
was acquired by Provident Distributors, Inc. an independently owned and operated
broker/dealer based in West Conshohocken, Pennsylvania.
After the close of business on September 30, 1999, the Small Cap Growth Fund
commenced investment operations. Effective October 4, 1999, the Short-
Intermediate U.S. Government, the California Intermediate Tax-Exempt and Arizona
Tax-Exempt Funds commenced investment operations.
<PAGE>
(BACK COVER)
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.
Northern Funds Distributors, LLC,
Distributor
NF4100999
(logo)
NORTHERN FUNDS
P.O. Box 75986
Chicago, IL 60690-6319
(800) 595-9111
- -----------------------
BULK RATE
U.S. POSTAGE
PAID
PERMIT NO. 240
PALATINE P&DC, IL
- --------------------------
XXXXXX
(LOGO)
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
------------------------------------------------------------------------------
SEMIANNUAL REPORT
------------------------------------------------------------------------------
September 30, 1999
<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.................................................. 11
U.S. Government Money Market Fund.................................. 16
U.S. Government Select Money Market Fund........................... 17
Municipal Money Market Fund........................................ 18
California Municipal Money Market Fund............................. 33
Notes to the Financial Statements....................................... 38
<PAGE>
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.
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.
Prerefunding is a procedure in which a bond issuer floats a second bond in order
to pay off the first bond at the first call date. The proceeds from the sale of
the second bond are safely invested, usually in Treasury securities, that will
mature at the first call date of the first bond issue. Those first bonds are
said to be prerefunded after this operation has taken place.
EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULES OF INVESTMENTS
AMBAC American Municipal Bond
Assurance Corp.
AMT Alternative Minimum Tax
BAN Bond Anticipation Notes
COLLD. Collateralized
COP Certificate of Participation
CP Commercial Paper
CVP Central Valley Project
FFCB Federal Farm Credit Bank
FGIC Financial Guaranty
Insurance Corp.
FHA Federal Housing
Authority
FHLB Federal Home Loan Bank
FHLMC Freddie Mac
FNMA Fannie Mae
FRN Floating Rate Note
FSA Financial Security Assurance
GNMA Government National Mortgage Association
G.O. General Obligation
GTD. Guaranteed
HDA Housing Development Agency
HFA Housing Finance Authority
HUD Housing and Urban
Development
IDA Industrial Development
Authority
IDR Industrial Development Revenue
LOC Letter of Credit
MBIA Municipal Bond Insurance
Association
ML/SG Merrill Societe Generale
MTN Medium Term Notes
P-FLOATS Puttable Floating Rate Securities
PCR Pollution Control Revenue
PFA Public Finance Authority
PRSV Preservation
PSF Permanent School Fund
RAN Revenue Anticipation Notes
ROC Reset Option Certificates
SFM Single Family Mortgage
SLMA SLM Holding Corp.
SOC GEN Societe Generale
TAN Tax Anticipation Notes
TRAN Tax and Revenue
Anticipation Notes
TRB Tax Revenue Bonds
VRDN Variable Rate Demand Notes
VRN Variable Rate Notes
----------------------------
NOT FDIC-INSURED
----------------------------
May lose value
No bank guarantee
----------------------------
An investment in Northern Funds is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other governmental agency. Although
the money market funds seek to preserve the value of your investment at $1.00
per share, it is possible to lose money by investing in the Funds.
Shares of Northern Funds are distributed by Northern Funds Distributors, LLC, an
independent third party.
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES SEPTEMBER 30, 1999 (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
- -------------------------------------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at amortized cost $5,250,690 $433,578 $402,402 $2,224,766 $449,760
Repurchase agreements, at cost which
approximates market value - 52,056 - - -
Cash - 6 46 - 76
Income receivable 21,060 752 927 14,824 2,931
Receivable from Adviser - - - - 29
Receivable for securities sold - - - 45 -
Prepaid and other assets 85 22 16 41 10
- ------------------------------------------------------------------------------------------------------------------------------------
Total Assets 5,271,835 486,414 403,391 2,239,676 452,806
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Overdraft 142 - - 90 -
Dividends payable 21,296 1,749 1,441 5,479 932
Payable for securities purchased - 44,591 24,985 - -
Accrued investment advisory fees 230 20 16 99 19
Accrued transfer agent fees 57 5 4 25 5
Accrued custody and accounting fees 34 10 7 36 8
Accrued registration fees and other liabilities 403 46 53 273 28
- ------------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 22,162 46,421 26,506 6,002 992
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets $5,249,673 $439,993 $376,885 $2,233,674 $451,814
====================================================================================================================================
ANALYSIS OF NET ASSETS:
Capital stock $5,249,547 $439,953 $376,860 $2,233,370 $451,767
Undistributed net investment income 124 33 21 207 20
Undistributed net realized gains 2 7 4 97 27
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets $5,249,673 $439,993 $376,885 $2,233,674 $451,814
====================================================================================================================================
SHARES OUTSTANDING ($.0001 PAR VALUE,
UNLIMITED AUTHORIZATION) 5,249,667 439,985 376,880 2,233,507 451,786
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.
<PAGE>
NORTHERN FUNDS Semiannual Report
STATEMENTS OF OPERATIONS SIX MONTHS ENDED SEPTEMBER 30, 1999 (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
- --------------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $130,159 $11,085 $9,770 $37,295 $5,893
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 15,124 1,318 1,176 6,755 1,155
Administration fees 3,781 330 294 1,689 289
Transfer agent fees 2,521 220 196 1,126 193
Custody and accounting fees 546 68 60 244 60
Registration fees 290 20 40 148 57
Professional fees 46 11 11 24 9
Trustees' fees and expenses 30 4 4 16 3
Other 86 27 7 44 5
- ------------------------------------------------------------------------------------------------------------------------------------
Total Expenses 22,424 1,998 1,788 10,046 1,771
Less voluntary waivers of:
Investment advisory fees (5,041) (439) (392) (2,252) (385)
Administration fees (2,577) (227) (195) (1,149) (199)
Less reimbursement of expenses by Adviser (943) (123) (123) (453) (128)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Expenses 13,863 1,209 1,078 6,192 1,059
- ------------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 116,296 9,876 8,692 31,103 4,834
- ------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAINS (LOSSES):
Investments (34) - 1 (131) (4)
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $116,262 $9,876 $8,693 $30,972 $4,830
====================================================================================================================================
</TABLE>
See Notes to the Financial Statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
MONEY MARKET FUNDS
<TABLE>
<CAPTION>
U.S. GOVERNMENT
MONEY MARKET MONEY MARKET
FUND FUND
------------------------------- -------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR
SEPT. 30, ENDED SEPT. 30, ENDED
1999 MAR. 31, 1999 MAR. 31,
AMOUNTS IN THOUSANDS (UNAUDITED) 1999 (UNAUDITED) 1999
- -------------------------------- -------------------------------- ----------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 116,296 $ 188,380 $ 9,876 $ 20,858
Net realized gains (losses) on investments (34) 33 - 3
- -----------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting
from Operations 116,262 188,413 9,876 20,861
- -----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 9,961,364 14,249,027 952,495 2,260,589
Shares from reinvestment of dividends 22,248 31,770 3,250 4,881
Shares redeemed (9,620,003) (12,690,762) (985,618) (2,212,649)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting
from Capital Share Transactions 363,609 1,590,035 (29,873) 52,821
- -----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID:
From net investment income (116,296) (188,380) (9,876) (20,858)
From net realized gains - - - -
- -----------------------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (116,296) (188,380) (9,876) (20,858)
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 363,575 1,590,068 (29,873) 52,824
NET ASSETS:
Beginning of period 4,886,098 3,296,030 469,866 417,042
- -----------------------------------------------------------------------------------------------------------------------------------
End of period $5,249,673 $4,886,098 $439,993 $469,866
===================================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $124 $124 $33 $33
===================================================================================================================================
</TABLE>
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
<TABLE>
<CAPTION>
U.S. GOVERNMENT CALIFORNIA
SELECT MUNICIPAL MUNICIPAL
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
-------------------------- ------------------------- --------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED YEAR
SEPT. 30, ENDED SEPT. 30, ENDED SEPT. 30, ENDED
1999 MAR. 31, 1999 MAR. 31, 1999 MAR. 31,
AMOUNTS IN THOUSANDS (UNAUDITED) 1999 (UNAUDITED) 1999 (UNAUDITED) 1999
- -------------------------------- ------------------------- ------------------------ -------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 8,692 $ 17,144 $ 31,103 $ 59,255 $ 4,834 $ 7,325
Net realized gains (losses)
on investments 1 3 (131) 228 (4) 32
- -----------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting
from Operations 8,693 17,147 30,972 59,483 4,830 7,357
- -----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 899,113 1,670,254 3,978,050 9,069,717 1,069,930 1,609,467
Shares from reinvestment of dividends 2,533 5,089 5,081 9,443 1,500 1,945
Shares redeemed (941,289) (1,565,244) (4,133,356) (8,509,555) (982,662) (1,473,237)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net
Assets Resulting
from Capital Share Transactions (39,643) 110,099 (150,225) 569,605 88,768 138,175
- -----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID:
From net investment income (8,692) (17,144) (31,103) (59,255) (4,834) (7,325)
From net realized gains - - - (146) - -
- -----------------------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (8,692) (17,144) (31,103) (59,401) (4,834) (7,325)
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS (39,642) 110,102 (150,356) 569,687 88,764 138,207
NET ASSETS:
Beginning of period 416,527 306,425 2,384,030 1,814,343 363,050 224,843
- -----------------------------------------------------------------------------------------------------------------------------------
End of period $376,885 $416,527 $2,233,674 $2,384,030 $451,814 $363,050
===================================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $21 $21 $207 $207 $20 $20
===================================================================================================================================
</TABLE>
See Notes to the Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS
MONEY MARKET FUNDS
<TABLE>
<CAPTION>
MONEY MARKET
FUND
-------------------------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
1999 1999 1998 1997 1996 1995<F1>
(UNAUDITED)
- ------------------------- -------------------------------------------------------------------------------------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.02 0.05 0.05 0.05 0.05 0.04
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.02) (0.05) (0.05) (0.05) (0.05) (0.04)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
================================================================================================================================
TOTAL RETURN<F2> 2.33% 5.04% 5.31% 5.05% 5.57% 4.55%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $5,249,673 $4,886,098 $3,296,030 $1,607,187 $1,061,813 $894,279
Ratio to average net assets of<F3>:
Expenses, net of waivers and
reimbursements 0.55% 0.55% 0.55% 0.55% 0.49% 0.45%
Expenses, before waivers and
reimbursements 0.89% 0.89% 0.90% 0.90% 0.91% 0.96%
Net investment income, net of
waivers and reimbursements 4.61% 4.91% 5.19% 4.94% 5.42% 4.94%
Net investment income, before
waivers and reimbursements 4.27% 4.57% 4.84% 4.59% 5.00% 4.43%
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> For the period November 29, 1994 (commencement of operations) through March
31, 1995.
<F2> Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at net asset value at the end of the year. Total return
is not annualized for periods less than one year.
<F3> Annualized for periods less than a full year.
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
<TABLE>
<CAPTION>
U.S. GOVERNMENT
MONEY MARKET
FUND
-------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR YEAR
SEPT. 30, ENDED ENDED ENDED ENDED ENDED
1999 MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
(UNAUDITED) 1999 1998 1997 1996 1995<F1>
- ------------------------- -------------------------------------------------------------------------------------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.02 0.05 0.05 0.05 0.05 0.04
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.02) (0.05) (0.05) (0.05) (0.05) (0.04)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
================================================================================================================================
TOTAL RETURN<F2> 2.28% 4.94% 5.22% 4.93% 5.46% 4.47%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $439,993 $469,866 $417,042 $314,259 $207,105 $227,543
Ratio to average net assets of<F3>:
Expenses, net of waivers and
reimbursements 0.55% 0.55% 0.55% 0.55% 0.49% 0.45%
Expenses, before waivers and
reimbursements 0.91% 0.91% 0.93% 0.96% 0.94% 1.01%
Net investment income, net of
waivers and reimbursements 4.50% 4.82% 5.10% 4.82% 5.33% 4.93%
Net investment income, before
waivers and reimbursements 4.14% 4.46% 4.72% 4.41% 4.88% 4.37%
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> For the period November 29, 1994 (commencement of operations) through March
31, 1995.
<F2> Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at net asset value at the end of the year. Total return
is not annualized for periods less than one year.
<F3> Annualized for periods less than a full year.
See Notes to the Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
MONEY MARKET FUNDS
<TABLE>
<CAPTION>
U.S. GOVERNMENT
SELECT
MONEY MARKET
FUND
-------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR YEAR
SEPT. 30, ENDED ENDED ENDED ENDED ENDED
1999 MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
(UNAUDITED) 1999 1998 1997 1996 1995<F1>
- ------------------------- -------------------------------------------------------------------------------------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.02 0.05 0.05 0.05 0.05 0.02
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.02) (0.05) (0.05) (0.05) (0.05) (0.02)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
================================================================================================================================
TOTAL RETURN<F3> 2.25% 4.87% 5.24% 5.07% 5.55% 1.75%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $376,885 $416,527 $306,425 $168,128 $85,400 $82,162
Ratio to average net assets of<F4>:
Expenses, net of waivers and
reimbursements 0.55% 0.55% 0.46% 0.40% 0.33% 0.30%
Expenses, before waivers and
reimbursements 0.91% 0.91% 0.93% 0.97% 1.00% 1.32%
Net investment income, net of
waivers and reimbursements 4.44% 4.73% 5.13% 4.95% 5.43% 5.84%
Net investment income, before
waivers and reimbursements 4.08% 4.37% 4.66% 4.38% 4.76% 4.82%
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> For the period December 12, 1994 (commencement of operations) through March
31, 1995.
<F2> For the period April 11, 1994 (commencement of operations) through March
31, 1995.
<F3> Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at net asset value at the end of the year. 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 Semiannual Report
<TABLE>
<CAPTION>
MUNICIPAL
MONEY MARKET
FUND
-------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR YEAR
SEPT. 30, ENDED ENDED ENDED ENDED ENDED
1999 MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
(UNAUDITED) 1999 1998 1997 1996 1995<F2>
- ------------------------- -------------------------------------------------------------------------------------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.01 0.03 0.03 0.03 0.03 0.03
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.01) (0.03) (0.03) (0.03) (0.03) (0.03)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
================================================================================================================================
TOTAL RETURN<F3> 1.40% 2.98% 3.27% 3.14% 3.54% 2.90%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $2,233,674 $2,384,030 $1,814,343 $1,420,041 $1,102,789 $927,747
Ratio to average net assets of<F4>:
Expenses, net of waivers and
reimbursements 0.55% 0.55% 0.55% 0.55% 0.49% 0.45%
Expenses, before waivers and
reimbursements 0.89% 0.89% 0.89% 0.90% 0.91% 0.95%
Net investment income, net of
waivers and reimbursements 2.76% 2.90% 3.20% 3.08% 3.46% 3.10%
Net investment income, before
waivers and reimbursements 2.42% 2.56% 2.86% 2.73% 3.04% 2.60%
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> For the period December 12, 1994 (commencement of operations) through March
31, 1995.
<F2> For the period April 11, 1994 (commencement of operations) through March
31, 1995.
<F3> Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at net asset value at the end of the year. 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>
FINANCIAL HIGHLIGHTS (CONTINUED)
MONEY MARKET FUNDS
<TABLE>
<CAPTION>
CALIFORNIA
MUNICIPAL
MONEY MARKET
FUND
-------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR YEAR
SEPT. 30, ENDED ENDED ENDED ENDED ENDED
1999 MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
(UNAUDITED) 1999 1998 1997 1996 1995<F1>
- ------------------------- -------------------------------------------------------------------------------------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.01 0.03 0.03 0.03 0.04 0.01
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.01) (0.03) (0.03) (0.03) (0.04) (0.01)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
================================================================================================================================
TOTAL RETURN<F2> 1.27% 2.75% 3.20% 3.19% 3.63% 1.27%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $451,814 $363,050 $224,843 $200,989 $165,087 $161,316
Ratio to average net assets of <F3>:
Expenses, net of waivers and
reimbursements 0.55% 0.55% 0.49% 0.45% 0.39% 0.35%
Expenses, before waivers and
reimbursements 0.92% 0.91% 0.94% 0.94% 0.94% 1.07%
Net investment income, net of
waivers and reimbursements 2.51% 2.68% 3.14% 3.13% 3.55% 3.78%
Net investment income, before
waivers and reimbursements 2.14% 2.32% 2.69% 2.64% 3.00% 3.06%
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> For the period November 29, 1994 (commencement of operations) through March
31, 1995.
<F2> Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at net asset value at the end of the year. Total return
is not annualized for periods less than one year.
<F3> Annualized for periods less than a full year.
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
MONEY MARKET FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT - 10.3%
DOMESTIC CERTIFICATES OF DEPOSIT - 1.7%
Huntington National Bank, Columbus,
$20,000 5.01%, 2/8/00 $ 19,999
57,000 5.40%, 5/31/00 56,982
12,500 Michigan National Bank,
5.18%, 4/25/00 12,497
----------
89,478
----------
FOREIGN CERTIFICATES OF DEPOSIT _ 8.6%
50,000 Bank of Nova Scotia, New York Branch,
5.20%, 2/25/00 49,992
Banque Nationale de Paris,
Chicago Branch,
25,000 5.23%, 2/25/00 24,997
89,000 5.12%, 4/17/00 88,977
12,500 Banque Nationale de Paris,
San Francisco Branch, 4.95%, 12/14/99 12,500
50,000 Commerzbank, New York Branch,
5.08%, 2/8/00 49,996
37,500 Deutsche Bank, New York Branch,
5.25%, 5/10/00 37,489
15,000 National Bank of Canada,
New York Branch, 5.81%, 7/31/00 14,995
50,000 National Westiminster Bank,
New York Branch, 5.71%, 7/3/00 49,986
50,000 Royal Bank of Canada, New York Branch,
5.25%, 2/28/00 49,992
Societe Generale, New York Branch,
35,000 5.26%, 2/28/00 34,994
35,000 5.24%, 5/8/00 34,992
----------
448,910
----------
Total Certificates of Deposit
(cost $538,388) 538,388
----------
COMMERCIAL PAPER - 65.2%
ADMINISTRATION OF ENVIRONMENT
& HOUSING PROGRAMS - 1.1%
Alaska Housing Finance Corp.,
36,600 5.38%, 10/5/99 36,578
20,000 5.27%, 10/13/99 19,965
----------
56,543
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
ASSET BACKED SECURITIES - 0.9%
$44,935 Newcourt Equipment Trust,
6.00%, 1/28/00 $ 44,922
----------
AUTO MANUFACTURERS - 5.0%
15,450 AESOP Funding Corp.,
5.40%, 10/14/99 15,420
Cooperative Association of Tractor,
8,000 5.56%, 10/7/99 7,993
1,500 5.48%, 10/26/99 1,494
2,000 5.45%, 11/16/99 1,986
4,900 5.50%, 11/19/99 4,864
Moriarty Ltd.,
60,900 5.46%, 10/1/99 60,900
21,950 5.25%, 10/12/99 21,915
45,000 5.27%, 10/22/99 44,864
15,000 5.40%, 10/25/99 14,947
50,000 5.50%, 12/2/99 49,533
Victory Receivables Corp.,
18,060 5.40%, 10/18/99 18,014
18,500 5.42%, 10/20/99 18,447
----------
260,377
----------
BANKS - 1.2%
Marshall & Isley Corp.,
21,100 5.41%, 10/8/99 21,078
20,000 5.45%, 11/8/99 19,886
22,000 Morgan (J.P.) & Co., Inc.
5.23%, 10/12/99 21,965
----------
62,929
----------
BEVERAGES - 0.2%
9,000 Coca Cola Enterprises,
5.25%, 10/14/99 8,983
----------
COLLATERIZED LOAN OBLIGATIONS - 4.5%
Lyon Short Term Funding,
18,109 5.47%, 11/12/99 17,995
20,000 5.47%, 11/16/99 19,862
R.O.S.E. Corp.,
20,000 5.35%, 10/14/99 19,962
17,250 5.41%, 10/28/99 17,180
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
COMMERCIAL PAPER -
65.2% (CONT'D.)
COLLATERIZED LOAN OBLIGATIONS - 4.5% (CONT'D.)
Syndicated Loan Funding Trust
$35,000 Series 1999-5, 5.52%, 2/15/00 $ 35,000
50,000 Series CR-12T 1996, 5.42%, 3/15/00 50,000
40,000 Series 1999-2, 5.63%, 10/16/00 40,000
16,000 Stellar Funding Inc.,
5.55%, 10/5/99 15,990
20,000 Triangle Funding Ltd.,
5.35%, 10/3/99 20,000
----------
235,989
----------
COMMUNICATIONS - 1.0%
50,000 GTE Corp.,
5.46%, 10/4/99 49,977
----------
COMPUTER & INDUSTRIAL MACHINES
& EQUIPMENT - 1.3%
Invensys PLC,
18,000 5.75%, 10/1/99 18,000
37,680 5.30%, 10/15/99 37,600
12,000 5.18%, 12/7/99 11,887
----------
67,487
----------
DOMESTIC DEPOSITORY INSTITUTIONS - 0.8%
40,000 Heller Financial Inc. Medium Term Note,
5.66%, 11/15/99 40,010
----------
ELECTRONICS & OTHER ELECTRICAL
COMPONENTS - 0.0%
526 GE Engine Receivables 1995-1 Trust,
5.20%, 10/7/99 526
500 General Electric Capital Corp.,
5.83%, 4/14/00 485
----------
1,011
----------
FOREIGN DEPOSITORY INSTITUTIONS - 0.7%
37,500 Spintab AB/Swedmortgage,
5.24%, 10/5/99 37,478
----------
HOLDING & OTHER INVESTMENT
OFFICES - 0.2%
10,000 Louis Dreyfus Corp.,
5.38%, 10/18/99 9,975
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
INSURANCE - 5.0%
Aetna Service Co.,
$ 12,000 5.40%, 10/21/99 $ 11,964
40,000 5.40%, 10/22/99 39,875
10,990 AON Corp.,
5.39%, 10/20/99 10,959
SAFECO Credit Corp.,
10,020 5.41%, 10/12/99 10,004
18,500 5.23%, 10/15/99 18,463
15,000 5.34%, 10/29/99 14,938
15,600 5.45%, 11/8/99 15,511
Torchmark, Inc.,
14,500 5.43%, 10/15/99 14,470
18,000 5.24%, 10/19/99 17,953
10,000 5.41%, 10/19/99 9,973
25,000 Transamerica Financial Corp.
Senior Secured Notes,
Series 1999-1, 4.73%, 10/22/99 25,000
United Health Care,
5,000 5.53%, 12/1/99 5,000
70,000 5.57%, 12/1/99 70,000
----------
264,110
----------
MULTI-SELLER CONDUITS - 23.3%
Concord Minutemen Capital Co.,
114,000 5.35%, 10/4/99 113,949
50,000 5.39%, 10/14/99 49,903
20,000 5.42%, 10/22/99 19,937
47,500 5.47%, 11/18/99 47,158
20,000 5.31%, 11/19/99 19,859
Dakota Certificates Program,
43,300 5.26%, 10/26/99 43,144
37,500 5.27%, 11/2/99 37,327
30,000 6.05%, 1/14/00 29,481
49,028 Edison Asset Securitization,
5.22%, 10/8/99 48,979
Eiffel Funding LLC,
50,400 5.40%, 10/19/99 50,264
10,000 5.47%, 10/19/99 9,973
Falcon Asset Securitization,
4,200 5.33%, 10/12/99 4,193
16,163 5.35%, 10/12/99 16,137
Grand Funding Corp.,
24,400 5.40%, 10/19/99 24,334
25,000 6.03%, 1/5/00 24,607
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MULTI-SELLER CONDUITS - 23.3% (CONT'D.)
International Securitization Corp.,
$17,000 5.44%, 10/14/99 $ 16,967
30,000 5.42%, 10/20/99 29,915
19,903 5.50%, 12/1/99 19,720
Lexington Parker Capital,
20,000 5.47%, 11/22/99 19,844
70,000 6.03%, 1/25/00 68,669
69,000 6.02%, 2/18/00 67,430
Old Line Funding,
7,000 5.46%, 10/8/99 6,993
13,000 5.46%, 10/12/99 12,978
Park Avenue Receivables,
50,000 5.42%, 10/6/99 49,963
22,500 5.42%, 10/20/99 22,436
Pooled Account Receivables Corp.,
19,018 5.47%, 10/22/99 18,958
13,183 5.45%, 11/15/99 13,094
50,000 5.47%, 12/16/99 49,431
25,000 Quincy Capital Corp.,
5.37%, 10/19/99 24,933
20,000 Receivables Capital Corp.,
5.37%, 10/18/99 19,950
Sheffield Receivables Corp.,
52,450 5.70%, 10/1/99 52,450
30,000 5.42%, 10/20/99 29,915
1,150 5.43%, 10/21/99 1,147
Silver Tower U.S. Funding,
21,000 5.27%, 10/27/99 20,921
10,000 4.98%, 11/8/99 9,949
30,000 5.06%, 11/18/99 29,803
50,000 5.31%, 11/23/99 49,616
23,500 5.50%, 12/2/99 23,280
Variable Funding Capital Corp.,
20,000 5.37%, 10/14/99 19,961
8,000 5.52%, 10/25/99 7,971
----------
1,225,539
----------
NON-DEPOSITORY CREDIT
INSTITUTIONS - 0.4%
12,000 Finova Capital Corp.,
5.44%, 11/19/99 11,912
10,900 Monte Rosa Capital Corp.,
5.39%, 10/13/99 10,881
----------
22,793
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
NON-DEPOSITORY PERSONAL CREDIT
INSTITUTIONS - 2.8%
Heller Financial Corp.,
$20,000 5.47%, 10/26/99 $ 19,925
25,000 5.52%, 12/10/99 24,735
5,000 5.53%, 12/16/99 4,942
86,000 Homeside Lending,
5.75%, 10/1/00 86,000
12,000 Household Finance Co.,
5.41%, 10/1/99 12,000
----------
147,602
----------
SECURITIES ARBITRAGE - 12.0%
25,000 ABC Funding,
5.99%, 2/15/00 24,443
Conduit Asset Backed Security,
8,700 5.51%, 11/8/99 8,650
10,000 5.64%, 1/24/00 9,825
50,000 Crown Point Capital Co.,
5.43%, 10/20/99 49,857
50,000 Giro Funding Corp.,
5.80%, 10/1/99 50,000
22,500 Grayhawk Funding,
5.51%, 12/17/99 22,239
Links Finance Corp LLC,
7,500 5.27%, 10/25/99 7,474
10,000 5.27%, 10/29/99 9,960
10,111 5.44%, 11/5/99 10,058
K2 USA LLC,
10,000 4.99%, 10/15/99 9,981
6,388 4.96%, 10/18/99 6,373
9,000 5.59%, 1/18/00 8,852
10,000 5.56%, 1/28/00 9,822
18,000 5.96%, 3/29/00 17,480
MPF Ltd.,
28,000 5.29%, 10/15/99 27,943
40,000 5.42%, 10/25/99 39,857
35,500 5.46%, 10/28/99 35,356
2,200 5.34%, 10/29/99 2,191
24,505 5.37%, 10/29/99 24,403
Sigma Finance,
10,000 5.26%, 10/19/99 9,974
10,000 5.34%, 10/25/99 9,965
5,500 5.48%, 10/25/99 5,480
13,500 5.37%, 10/29/99 13,444
8,650 5.41%, 10/29/99 8,614
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
COMMERCIAL PAPER -
65.2% (CONT'D.)
SECURITIES ARBITRAGE - 12.0% (CONT'D.)
Trident Capital Financial Corp.,
$34,198 5.48%, 11/29/99 $ 33,895
50,000 5.51%, 12/7/99 49,495
43,000 5.23%, 12/13/99 42,556
30,000 5.39%,10/12/99 29,951
25,500 5.56%,10/13/99 25,453
30,400 5.41%,10/19/99 30,318
----------
633,909
----------
SINGLE-SELLER CONDUITS - 3.0%
Atlantis One Funding Corp.,
23,850 5.66%, 2/1/00 23,402
25,000 5.98%, 3/23/00 24,299
35,000 EFG Funding LLC,
5.53%, 12/14/99 34,608
Golden Funding Corp.,
13,000 5.40%, 10/4/99 12,994
13,500 5.41%, 10/14/99 13,474
50,000 Perry IV Funding
6.01%, 3/13/00 48,672
----------
157,449
----------
TRANSPORTATION EQUIPMENT- 1.8%
485 Ford Motor Credit Corp.,
5.83%, 4/14/00 485
General Motors Acceptance Corp.,
20,000 5.40%, 10/1/99 20,000
2,150 5.51%, 12/9/99 2,150
Harley Davidson Funding,
5,000 5.46%, 11/2/99 4,976
10,000 5.49%, 12/10/99 9,895
Textron Financial Corp.,
25,000 5.41%, 10/21/99 24,925
6,400 5.43%, 10/21/99 6,381
20,000 5.43%, 10/22/99 19,937
10,000 5.45%, 11/24/99 9,919
----------
98,668
----------
Total Commercial Paper
(cost $3,425,751) 3,425,751
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CORPORATE BONDS - 3.9%
Centauri Corp.,
$25,000 6.06%, 9/7/00 $ 25,000
25,000 6.10%, 9/7/00 25,000
K2 (USA) LLC,
1,000 5.58%, 6/5/00 1,000
5,000 5.60%, 6/15/00 5,000
5,000 5.70%, 6/30/00 5,000
Liberty Lighthouse US Capital, Series A
(First of America Bank LOC)
25,000 5.29%, 10/8/99 25,000
25,000 5.71%, 7/7/00 25,000
35,000 5.75%, 7/17/00 35,000
50,000 6.15%, 10/13/00 50,000
11,793 Marshall & Isley Bank,
6.15%, 9/28/00 11,784
----------
Total Corporate Bonds
(cost $207,784) 207,784
----------
EURO DOLLAR TIME DEPOSITS - 12.6%
50,000 Banco Popular, Puerto Rico,
5.625%, 10/1/99 50,000
73,991 Banque Brussels Lambert, London,
5.625%, 10/1/99 73,991
150,000 Credit Suisse First Boston,
Grand Cayman, 5.56%, 10/1/99 150,000
100,000 ING Bank, Grand Cayman,
5.59%, 10/1/99 100,000
132,220 KBC Bank, Grand Cayman,
5.56%, 10/1/99 132,219
150,000 Norddeutsche Landesbank
Girozentrale, 5.60%, 10/1/99 150,000
3,992 Toronto Dominion Bank,
Grand Cayman, 5.50%, 10/1/99 3,992
----------
Total Eurodollar Time Deposits
(cost $660,202) 660,202
----------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
INSURANCE FUNDING
AGREEMENTS - 0.9%
(cost $45,000)
General American Life Insurance Co.,
45,000 5.52%, 10/1/99 45,000
----------
MUNICIPAL INVESTMENTS - 7.1%
3,000 1800 Harrison Foundation,
5.00%, 10/6/99 3,000
7,740 ADE Investments LLC Loan
Program VRN, Series A, 5.38%, 10/7/99 7,740
11,755 BRCH Corp. VRDN, Series 1998A
(First of America Bank LOC)
5.35%, 10/5/99 11,755
12,265 California Housing Finance Agency,
Series 99, 5.35%, 10/7/99 12,265
4,350 Courtyards of Mackinaw LLC
Mortgage Revenue Bond, Series 1999H,
5.35%, 10/1/99 4,350
4,500 Elsmere, Kentucky Mubea, Inc.,
5.41%, 10/7/99 4,500
13,500 Flint, Michigan Hospital Building
Authority Loan Program Notes,
Series A 1997, Hurley Medical Center
(First of America Bank LOC)
5.62%, 10/7/99 13,500
22,800 Healthcare Network Properties LLC
Loan Program VRN, Series 1999A
(National City Bank LOC)
5.39%, 10/7/99 22,800
9,000 Hydro Quebec, Province of Quebec,
5.76%, 10/1/99 9,000
14,600 Integris Health, Inc. VRDN,
5.69%, 10/6/99 14,600
17,100 Johnson City Medical Center
Hospital, Inc., Baptist Plaza
Association Ltd., 4.93%, 10/7/99 17,100
3,085 KBL Capital Fund, Inc. Loan
Program Note, Series 1998,
5.38%, 10/7/99 3,085
30,000 Los Angeles County, California,
Pension Obligation, 5.45%, 10/7/99 30,000
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
$ 4,500 Malone College Project VRN,
5.39%, 10/6/99 $ 4,500
9,435 Municipal Electric Authority of Georgia,
5.30%, 10/7/99 9,430
12,270 New Jersey Economic Development
Authority Project VRDN, Series 1998,
5.64%, 10/1/99 12,265
18,600 Physicians Plus Medical Group, S.C.,
6.00%, 10/7/99 18,600
5,200 Schreiber Industrial Park-North Co.
VRDN, Series 1997B, MSNBC/CNBC
Project, 5.41%, 10/7/99 5,200
10,995 Seattle, Washington, Ltd. G.O. Bond,
Series 1996-C, 5.20%, 10/6/99 10,995
9,275 Stanislaus County, California Pension
Obligation, 5.48%, 10/1/99 9,275
9,245 Texas State Veterans Housing Fund
Tender Option Bond, 5.48%, 10/1/99 9,245
12,745 Virginia State HDA Multi-family
Housing Bond, Series 1996 CR-10T,
5.48%, 10/1/99 12,745
Virginia State Housing Development
Authority Bond, Commonwealth
Mortgage
117,880 Series 1998, 5.35%, 10/6/99 117,880
4,855 Series B, 5.45%, 10/7/99 4,855
1,830 Subseries 1997-5A, 5.35%, 10/6/99 1,830
3,050 Waukesha, Wisconsin, Health
System, Inc., 5.45%, 10/7/99 3,050
----------
Total Municipal Investments
(cost $373,565) 373,565
----------
Total Investments - 100.0%
(cost $5,250,690) 5,250,690
Liabilities less Other Assets - (0.0)% (1,017)
----------
NET ASSETS - 100.0% $5,249,673
==========
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
U.S. GOVERNMENT MONEY MARKET FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES - 98.6%
FANNIE MAE - 44.3%
FNMA Bonds
$ 6,000 5.04%, 4/6/00 $ 5,998
5,000 4.97%, 4/12/00 4,998
FNMA Bond FRN,
30,934 5.38%, 10/1/99 30,925
FNMA Discount MBS
19,000 5.19%, 10/1/99 19,000
25,000 5.22%, 10/1/99 25,000
10,660 4.84%, 12/1/99 10,573
45,000 5.36%, 12/1/99 44,591
FNMA Discount Notes
2,862 5.25%, 10/4/99 2,861
12,750 4.715%, 10/8/99 12,738
10,000 5.24%, 12/2/99 9,910
10,000 5.05%, 12/13/99 9,898
15,000 5.48%, 1/21/00 14,744
3,937 5.44%, 2/2/00 3,863
----------
195,099
----------
FEDERAL AGRICULTURE
MORTGAGE CORP. - 2.3%
10,000 Farmer Mac Discount Note,
5.07%, 10/4/99 9,996
----------
FEDERAL FARM CREDIT BANK - 3.6%
16,000 FFCB FRN,
5.35%, 12/1/99 15,999
----------
FEDERAL HOME LOAN BANK - 9.1%
5,000 FHLB Bond
5.09%, 3/22/00 5,000
10,000 FHLB Discount Note,
5.02%, 2/1/00 9,836
FHLB FRN
10,000 5.22%, 11/12/99 9,995
15,000 5.56%, 4/28/00 14,997
----------
39,828
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
FREDDIE MAC - 35.4%
FHLMC Discount Notes
$ 9,924 5.07%, 10/4/99 $ 9,920
35,600 5.24%, 10/15/99 35,527
2,050 5.21%, 11/5/99 2,040
20,000 5.48%, 1/14/00 19,680
20,000 5.36%, 1/21/00 19,666
5,000 5.46%, 1/28/00 4,910
15,000 5.53%, 2/1/00 14,716
17,000 5.54%, 2/3/00 16,673
8,519 5.45%, 2/15/00 8,342
8,000 5.45%, 2/25/00 7,822
10,000 4.18%, 3/2/00 9,795
6,706 5.19%, 6/6/00 6,465
----------
155,556
----------
OVERSEAS PRIVATE INVESTMENT CORP. - 3.9%
17,100 FRN, 5.40%, 10/6/99 17,100
----------
Total U.S. Government Agencies
(cost $433,578) 433,578
----------
REPURCHASE AGREEMENTS - 11.8%
20,000 ABN-AMRO, dated 9/30/99, repurchase
price $20,003 (Colld. by U.S. Government
Securities), 5.50%, 10/1/99 20,000
32,056 Lehman Brothers, Inc., dated 9/30/99,
repurchase price $32,061 (Colld. by U.S.
Government Securities), 5.35%, 10/1/99 32,056
----------
Total Repurchase Agreements
(cost $52,056) 52,056
----------
Total Investments - 110.4%
(cost $485,634) 485,634
Liabilities less Other Assets - (10.4)% (45,641)
----------
NET ASSETS - 100.0% $439,993
==========
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
U.S. GOVERNMENT SELECT MONEY MARKET FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES - 106.8%
FEDERAL FARM CREDIT BANK - 5.1%
FFCB Discount Notes,
$12,507 5.49%, 3/15/00 $ 12,190
FFCB Discount Notes FRN,
7,000 5.10%, 10/11/99 6,997
----------
19,187
----------
FEDERAL HOME LOAN BANK - 99.0%
FHLB Bonds
25,000 5.16%, 3/8/00 24,996
20,000 4.97%, 4/20/00 19,994
FHLB Discount Notes
10,000 5.23%, 10/6/99 9,993
20,000 5.18%, 10/20/99 19,945
10,000 5.20%, 11/24/99 9,922
134,646 5.17%, 10/1/99 134,646
5,000 4.70%, 1/19/00 4,928
10,000 5.46%, 1/28/00 9,820
10,000 5.32%, 1/28/00 9,824
25,000 5.39%, 2/2/00 24,536
5,000 5.45%, 2/25/00 4,889
10,000 5.53%, 3/8/00 9,756
FHLB FRN
25,000 5.61%, 10/1/99 24,989
25,000 5.63%, 10/1/99 24,985
10,000 5.56%, 10/1/99 9,997
15,000 5.36%, 10/5/99 14,999
5,000 5.32%, 10/6/99 5,001
10,000 5.22%, 11/12/99 9,995
----------
373,215
----------
SALLIE MAE FRN - 2.7%
10,000 5.50%, 10/5/99 10,000
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
Total U.S. Government Agencies - 106.8%
(cost $402,402) $402,402
----------
Total Investments - 106.8%
(cost $402,402) 402,402
Liabilities less Other Assets - (6.8)% (25,517)
----------
NET ASSETS - 100.0% $376,885
=========
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 99.4%
Alabama - 1.7%
$ 1,800 Ashland City Industrial Development
Board IDR VRDN (AMT), Russell Corp.
Project (SunTrust Banks LOC),
3.90%, 10/7/99 $ 1,800
2,575 Columbia City Industrial Development
Board IDR VRDN (AMT), Russell Corp.
Project (SunTrust Banks LOC),
3.90%, 10/7/99 2,575
2,575 Geneva County Industrial Development
Board IDR VRDN (AMT), Russell Corp.
Project (SunTrust Banks LOC),
3.90%, 10/7/99 2,575
700 Greenville City IDR VRDN,
AlliedSignal Project, 3.95%, 10/7/99 700
5,000 Lauderdale County & Florence Alabama
Health Care VRDN, Coffee Health Group B,
(MBIA Insured), 3.65%, 10/7/99 5,000
2,800 McIntosh City Industrial Development
Board Environmental Improvement
Revenue Refunding VRDN, Series E
(AMT), Ciba Specialty Chemical Corp.,
4.05%, 10/1/99 2,800
18,965 Mobile Industrial Development Board
Dock & Wharf VRDN, Holnam, Inc.
Project, Series B, (Wachovia Bank LOC),
3.70%, 10/7/99 18,965
2,300 Selma City IDR VRDN, Series A (AMT),
Meadowcraft, Inc. Project (Bank
of America Corp. LOC), 3.95%, 10/7/99 2,300
1,000 Stevenson Industrial Development Board
Environmental Improvement Revenue
Bond (AMT), Mead Corp. Project
(Soc Gen LOC), 4.05%, 10/1/99 1,000
----------
37,715
----------
ARIZONA - 1.2%
1,250 Apache County IDR VRDN, Series 1996
(AMT), Imperial Components, Inc. Project,
(Harris Trust & Savings
Bank LOC), 3.95%, 10/7/99 1,250
7,300 Cochise County Solid Waste Disposal
PCR VRDN, Series A (AMT), Arizona
Electric Power Project, 3.65%, 3/1/00 7,300
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
ARIZONA - 1.2% (CONT'D.)
$9,545 Maricopa County IDA Hospital
Revenue Bonds, Mayo Foundation,
Morgan Stanley Muni Floater Certificates,
Series 1998-103, 3.85%, 10/7/99 $ 9,545
9,500 Salt River Agricultural Project Bonds,
Improvement & Power District,
3.60%, 3/7/00 9,500
----------
27,595
----------
ARKANSAS - 0.5%
5,875 Arkansas State Development Finance
Authority Home Mortgage Revenue Bond,
Series PT-257 (AMT), 3.10%, 1/13/00 5,875
3,250 Lowell City IDR VRDN (AMT), Little Rock
Newspapers, Inc. Project (Bank of New
York LOC), 3.90%, 10/7/99 3,250
2,050 West Memphis City IDR VRDN (AMT),
Proform Co. LLC Project (First Bank LOC),
3.90%, 10/7/99 2,050
----------
11,175
----------
CALIFORNIA - 0.6%
200 California State G.O. Bond,
Series CR-52 (FGIC Insured),
3.67%, 10/7/99 200
800 California State Short Option Period Bond,
Series CR-153D (FGIC Insured)
3.67%, 10/7/99 800
8,500 Irvine Ranch Consolidated Water
Districts 2, 102, 103, 106, 203 & 206
VRDN, Series B (Morgan Guaranty Trust
LOC), 3.60%, 10/1/99 8,500
3,840 Sacramento City Finance Authority Lease
Revenue Refunding Bonds, Paine Webber
Municipal Trust Receipts, Series 1997
SAK 18 (AMBAC Insured), 3.95%, 10/7/99 3,840
----------
13,340
----------
COLORADO - 3.3%
City and County of Denver
Airport System Subordinate Revenue Bonds,
Series 1997A (AMT)
3,500 3.35%, 10/8/99 3,500
3,300 3.25%, 1/26/00 3,300
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
COLORADO - 3.3% (CONT'D.)
$ 6,000 Colorado State Educational & Cultural
Facility Authority Revenue VRDN,
St. Mary's Academy Project 1999
(Bank One LOC), 3.90%, 10/7/99 $ 6,000
10,800 Colorado State Health Facility Authority
Revenue VRDN, Catholic Health Initiatives,
Series B, 3.85%, 10/7/99 10,800
7,000 Colorado State Health Facility Authority
Revenue Bonds, North Colorado Medical
Center, Series 1990 (MBIA Insured),
3.80%, 10/7/99 7,000
10,000 Colorado State HFA Multi-Family Revenue
Bond, Series A, 3.84%, 10/7/99 10,000
9,900 Colorado State HFA SFM VRDN, Series C-1,
Bank of America Trust Certificate (AMT),
3.92%, 10/7/99 9,900
4,000 Colorado State HFA VRDN (AMT),
Metal Sales Manufacturing Corp. Project
(Star Bank LOC), 3.95%, 10/7/99 4,000
8,555 Colorado State Student Obligation Bond
Authority, Series A (AMT) 3.85%, 10/7/99 8,555
8,500 Intermountain Power Agency
Power Supply Revenue Goldman Sachs CP,
Series B-1, 3.25%, 10/8/99 8,500
2,000 Pitkin County IDR, Series B (AMT),
Aspen Skiing Project (Bank One LOC),
4.00%, 10/1/99 2,000
----------
73,555
----------
DELAWARE - 0.6%
3,200 Delaware State Economic Development
Authority IDR VRDN, Series 1998 (AMT),
C&C Family L.P. (PNC Bank LOC),
3.95%, 10/7/99 3,200
1,325 Delaware State Economic Development
Authority PCR VRDN, AlliedSignal Corp.
Project, 3.95%, 10/7/99 1,325
7,500 Delaware State Health Facility Authority
Revenue Bonds, Beebe Medical Center
Project, (Colld. by U.S. Government
Securities), 8.50%, 6/1/00 7,858
----------
12,383
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 2.2%
$30,500 District of Columbia Metropolitan Airport
Authority Passenger Facility Flexible
Term Note (AMT) (Bank of America LOC),
3.50%, 11/19/99 $30,500
6,700 District of Columbia VRDN,
American University Project 1985
(AMBAC Insured), 3.80%, 10/7/99 6,700
12,590 District of Columbia Water & Sewer
Revenue Bonds, Citicorp Eagle Trust
8121A, 3.84%, 10/7/99 12,590
----------
49,790
----------
FLORIDA - 3.1%
4,000 ABN-AMRO MuniTops
Florida Board of Education Capital
Outlay Revenue Bonds (ABN-AMRO
LOC), (FSA Insured), 3.91%, 10/7/99 4,000
3,785 Duval County HFA Mortgage Revenue
VRDN, Series 3A (AMT), Clipper Trust
Certificate, 3.98%, 10/7/99 3,785
10,395 Florida State Board of Education Capital
Outlay Eagle Trust, Series 1989 A,
3.84%, 10/7/99 10,395
2,000 Florida State Board of Education VRDN,
Series 1993E, Eagle Trust, 3.84%, 10/7/99 2,000
4,400 Florida State HFA Homeowner
Mortgage Bonds, Series 2
(AMT) (MBIA Insured), 3.95%, 10/7/99 4,400
7,145 Hillsborough County IDR VRDN,
Weekly Option Period, Series 4 (MBIA
Insured), 4.02%, 10/7/99 7,145
4,800 Jacksonville PCR Refunding Bonds,
Series 1994, Florida Power & Light Project,
3.25%, 10/12/99 4,800
1,900 Miami Dade County IDR VRDN
(AMT), Fine Art Lamps Project (SunTrust
Banks LOC), 3.90%, 10/2/99 1,900
2,000 Ocean Highway & Port Authority Revenue
Bonds (AMT) (ABN-AMRO LOC),
3.90%, 10/7/99 2,000
3,000 Orange County Educational Facilities
Authority VRDN, Rollins College Project
(Bank of America Corp. LOC),
3.80%, 10/7/99 3,000
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
99.4% (CONT'D.)
FLORIDA - 3.1% (CONT'D.)
$ 4,340 Orange County HFA, Series 1987-A,
Citicorp Eagle Trust, 3.87%, 10/7/99 $ 4,340
5,010 Sunshine State Government Finance
Authority CP Revenue Notes, Series A
(AMT), Government Finance Program
(FGIC Insured), 3.30%, 10/22/99 5,010
16,990 Sunshine State Government Finance
Commission, Series 1986
(AMBAC Insured), 3.25%, 10/22/99 16,990
----------
69,765
----------
GEORGIA - 2.8%
6,800 Atlanta Housing Authority
Multi-Family VRDN, Series 1999 (AMT),
Village of E. Lake Phase II
(Bank of America Corp. LOC),
3.90%, 10/7/99 6,800
10,000 Bartow County Development Authority
PCR Bonds, Series 2 (AMT), Georgia Power
Co. Bowen Project, 3.75%, 1/26/00 10,000
3,000 Clayton County Housing Authority
Revenue VRDN (AMT), Williamsburg South
Apartments Project (PNC Bank LOC),
3.90%, 10/7/99 3,000
5,300 Clayton County IDR VRDN (AMT),
Blue Circle Aggregates, Inc. Project
(Denmark Danske Bank LOC),
3.90%, 10/7/99 5,300
5,200 DeKalb County Housing Authority
Revenue VRDN, Series 1995 (AMT), Cedar
Creek Apartment Project (General Electric
Capital Corp. LOC), 3.95%, 10/7/99 5,200
10,000 Fulton County G.O. Bonds, Series 9,
Citicorp Eagle Trust, 3.50%, 1/27/00 10,000
Georgia HFA Conventional Mortgage
Tender Option Bond, Mortgage License
(AMT) (FHA Insured)
6,325 Series C, 3.30%, 12/1/99 6,325
910 Series D, 3.30%, 12/1/99 910
1,800 Gwinnett County IDR VRDN, Series
1998 (AMT), Network Publications,
Inc. (Bank ofAmerica Corp. LOC),
3.90%, 10/7/99 1,800
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
GEORGIA - 2.8% (CONT'D.)
$ 4,000 Hapeville Development Authority IDR
VRDN, Series 1985, Hapeville Hotel Project,
(Deutsche Bank LOC), 3.95%, 10/1/99 $ 4,000
4,150 Henry County Development Authority
Revenue Bonds, Series 1997 (AMT), Atlas
Roofing Corp. Project (SunTrust Banks
LOC), 3.90%, 10/7/99 4,150
5,000 Savannah City Economic Development
Authority Revenue VRDN, Series 1997
(AMT), Kaolin Terminals Project
(Bank of America Corp. LOC),
3.90%, 10/7/99 5,000
----------
62,485
----------
HAWAII - 0.2%
5,000 Hawaii State Department of Budget &
Finance, Series A (AMT), Hawaiian
Electric Co. Project (MBIA Insured),
3.90%, 10/7/99 5,000
----------
ILLINOIS - 10.5%
3,500 Arlington Heights IDR VRDN, Series 1997
(AMT), 3E Graphics and Printing Project
(Harris Trust & Savings Bank LOC),
3.95%, 10/7/99 3,500
9,580 Aurora City Rental Housing Revenue
Bonds, Series PA-328, Fox Valley Project
(Merrill Lynch Gtd.), 3.99%, 10/7/99 9,580
7,000 Bolingbrook Multi-Family Housing
Redevelopment Revenue Refunding VRDN,
Series A (AMT), Amberton Apartments,
(LaSalle National Bank LOC),
3.85%, 10/7/99 7,000
2,655 Chicago City IDR, Series B (AMT),
Guernsey Bel, Inc. Project (LaSalle National
Bank LOC), 3.84%, 10/7/99 2,655
9,495 Chicago City Public Building Commission,
Series A PT-155, P-Floats (MBIA Insured),
3.10%, 10/21/99 9,495
3,885 Chicago City Sales TRB, Series PCR-8
(FGIC Insured), 4.02%, 10/7/99 3,885
10,000 Chicago City VRDN Certificates, Series M
(FGIC Insured), 3.62%, 7/13/00 10,000
7,000 Chicago Midway Airport Revenue VRDN,
Second Lien, Series A (AMT)
(MBIA Insured), 4.10%, 10/1/99 7,000
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
ILLINOIS - 10.5% (CONT'D.)
$ 5,500 Chicago Midway Airport Revenue VRDN,
Series 1995 (AMT), American Trans Air, Inc.
Project (Bank One LOC), 3.95%, 10/7/99 $ 5,500
12,000 Chicago School Reform Board G.O.
Bonds, Series 1996 (MBIA Insured),
Bank of America Variable Rate Certificates,
3.92%, 10/7/99 12,000
3,750 Crestwood IDR Bond (AMT), GMG
Warehouse LLC Project (LaSalle National
Bank LOC), 3.84%, 10/7/99 3,750
1,600 Des Plaines City IDR VRDN, Series 1996
(AMT), Finzer Roller, Inc. Project
(Harris Trust & Savings Bank LOC),
3.95%, 10/7/99 1,600
5,300 DuPage County Water Commission Water
Revenue Bonds, Citicorp Eagle Trust,
3.84%, 10/7/99 5,300
3,550 Frankfort City IDR, Series 1996 (AMT),
Bimba Manufacturing Co. Project
(Harris Trust & Savings Bank LOC),
3.95%, 10/7/99 3,550
4,375 Fulton County IDR VRDN, Series 1998
(AMT), Drives, Inc. Project (Harris Trust
& Savings Bank LOC), 3.95%, 10/7/99 4,375
650 Illinois State Development Finance
Authority Economic Development Revenue
VRDN (AMT), D.E. Akin Seed Project
(Bank One LOC), 3.95%, 10/7/99 650
2,365 Illinois State Development Finance
Authority IDR VRDN (AMT), Bimba
Manufacturing Co. Project (Harris Trust &
Savings Bank LOC), 3.95%, 10/7/99 2,365
6,400 Illinois State Development Finance
Authority Local Government Finance
Program, Series A (AMBAC Insured),
3.80%, 10/7/99 6,400
4,100 Illinois State Development Finance
Authority IDR VRDN, Series 1997 (AMT),
Ciccone Food Products Project (Harris
Trust & Savings Bank LOC),
3.95%, 10/7/99 4,100
5,080 Illinois State Development Finance
Authority IDR VRDN, Series A (AMT),
General Converting Project (LaSalle
National Bank LOC), 3.84%, 10/7/99 5,080
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
ILLINOIS - 10.5% (CONT'D.)
$ 2,265 Illinois State Development Finance
Authority IDR VRDN, Series A (AMT),
Randall Metals Corp. Project (LaSalle
National Bank LOC), 4.05%, 10/7/99 $ 2,265
3,900 Illinois State Development Finance
Authority IDR VRDN (AMT), Astron
Midwestern Inc. Project, (American
National Bank LOC), 4.10%, 10/7/99 3,900
4,400 Illinois State Development Fnance
Authority IDR VRDN (AMT), Touhy LP
Project (LaSalle National Bank LOC),
3.84%, 10/7/99 4,400
4,545 Illinois State Development Finance
Authority Revenue VRDN, Series 1999
(AMT), Elite Manufacturing Technology,
Inc. Project (Harris Trust & Savings
Bank LOC), 3.95%, 10/7/99 4,545
5,950 Illinois State Development Finance
Authority Revenue VRDN, Enterprise
Office Project (Colld. by U.S. Government
Securities), 3.80%, 12/1/99 5,950
5,500 Illinois State Development Finance
Authority Revenue VRDN (AMT), Flying
Food Fare, Inc. Project (Bank of America
Corp. LOC), 3.95%, 10/7/99 5,500
4,160 Illinois State Development Finance
Authority Revenue VRDN (AMT), Olive
Can Co. Project (LaSalle National Bank
LOC), 3.84%, 10/7/99 4,160
1,500 Illinois State Development Finance
Authority Revenue VRDN, Series 1994,
WBEZ Alliance Project, Series 1994
(LaSalle National Bank LOC),
3.80%, 10/7/99 1,500
3,400 Illinois State Educational Facilities
Authority VRDN, Cultural Pooled Finance
Project, (American National Bank LOC),
3.80%, 10/7/99 3,400
9,000 Illinois State Health Facilities Authority
Revenue VRDN, Series 1985B, Evanston
Hospital Corp., 3.65%, 8/15/00 9,000
14,000 Illinois State Health Facilities Authority
VRDN, Series 1993, Resurrection Health
Care System, 3.60%, 11/24/99 14,000
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
99.4% (CONT'D.)
ILLINOIS - 10.5% (CONT'D.)
$ 1,500 Illinois State Health Facilities Authority
VRDN, Series A (FSA Insured), Resurrection
Health Care System, 3.95%, 10/1/99 $ 1,500
15,000 Illinois State Health Facilities Authority
VRDN, Series B (FSA Insured), Resurrection
Health Care System, 3.80%, 10/7/99 15,000
6,425 Illinois State HDA Revenue VRDN,
Series B-2 (AMT), Homeowner Mortgage,
3.25%, 4/27/00 6,425
5,480 Illinois State HDA VRDN, Subseries A-2
(AMT), Homeowner Mortgage,
3.10%, 1/20/00 5,480
7,500 Ladd Village IDR VRDN, Series 1996
(AMT), O'Neal Metals, Inc. Project (Bank
of America Corp. LOC), 3.95%, 10/7/99 7,500
2,000 Macon County Adjustable Rate Demand
Revenue Bond, Series 1999 (AMBAC
Insured), Milikin University,
3.80%, 10/7/99 2,000
1,575 Naperville G.O. Bonds, Series A,
4.00%, 12/1/99 1,577
2,710 Niles Village IDR VRDN, Series 1996
(AMT), Lewis Spring & Manufacturing Co.
Project (Harris Trust & Savings Bank LOC),
3.95%, 10/7/99 2,710
2,700 Rockford City IDR, Series 1998 (AMT),
Ring Can Corp. Project (SunTrust Banks
LOC), 3.90%, 10/7/99 2,700
2,250 Romeoville City IDR, Series 1997 (AMT),
Metropolitan Industries, Inc. Project
(Harris Trust & Savings Bank LOC),
3.95%, 10/7/99 2,250
6,000 Savanna City IDR VRDN, Series 1994
(AMT), Metform Corp. Project
(Bank One LOC),
3.90%, 10/7/99 6,000
5,800 St. Clair County IDR VRDN (AMT), Stellar
Manufacturing Project (Bank of America
Corp. LOC), 3.95%, 10/7/99 5,800
9,000 Will County Solid Waste Disposal Revenue
Bond (AMT), BASF Corp. Project,
4.10%, 10/1/99 9,000
----------
234,347
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
INDIANA - 2.5%
$ 2,790 Anderson City Economic Development
VRDN, Series 1996 (AMT), Gateway
Village Project (FHLB LOC),
3.85%, 10/7/99 $ 2,790
2,925 City of Indianapolis
Citizens Gas & Coke Utility,
3.60%, 1/25/00 2,925
2,200 Ft. Wayne Hospital Authority VRDN,
Series 1985 D, Park View Hospital Program
(Bank of America LOC),
3.80%, 10/7/99 2,200
1,500 Greencastle City IDR VRDN, Series 1996
(AMT), Crown Equipment Corp. Project
(Key Bank LOC), 3.95%, 10/7/99 1,500
2,840 Hammond City Economic Devlopment
VRDN, Series 1996 A (AMT), Annex at
Douglas Point Project (FHLB LOC),
3.85%, 10/7/99 2,840
Indiana Development Finance Authority
IDR VRDN (AMT), Red Gold, Inc. Project
(Harris Trust & Savings Bank LOC)
4,600 Series 1994 A, 3.95%, 10/7/99 4,600
2,900 Series 1994 B, 3.95%, 10/7/99 2,900
1,600 Indiana State Development Finance
Authority Revenue VRDN, Indiana
Historical Society, Inc. Project (Bank One
LOC), 3.80%, 10/7/99 1,600
5,000 Indiana State Development Finance
Authority (AMT), Facility Revenue
Refunding Bonds, 3.90%, 10/7/99 5,000
17,000 Indiana Transportation Authority Highway
Revenue Bonds, Citicorp Eagle Trust,
3.50%, 1/27/00 17,000
1,000 Indianapolis Airport Authority
Refunding Bonds, Series A (AMT)
(FGIC Insured), 4.50%, 7/1/00 1,005
3,600 Jasper County PCR VRDN,
Series 1988-A, Northern Indiana Public
Service Project, 3.70%, 3/10/00 3,600
2,000 Jasper County PCR, Series 1988-D,
Northern Indiana Public Service Project,
3.25%, 10/13/99 2,000
6,000 Madison Economic Development Authority
Revenue Bonds, Arvin Sango, Inc. Project
(Bank One LOC), 4.00%, 10/7/99 6,000
----------
55,960
----------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
IOWA - 1.4%
$12,590 Iowa Finance Authority SFM Program
Bonds, Series B (AMT) (GNMA/FNMA
Insured), 3.00%, 2/23/00 $12,590
1,100 Iowa Finance Authority Solid Waste
Disposal Revenue VRDN, Series 1993-A
(AMT), Cedar River Paper Co. Project
(Union Bank of Switzerland LOC),
4.10%, 10/1/99 1,100
Iowa Finance Authority Waste Disposal
Revenue VRDN (AMT),
Cedar River Paper Co. Project
(Union Bank of Switzerland LOC),
3,700 Series 1994-A, 4.10%, 10/1/99 3,700
9,900 Series 1995-A, 4.10%, 10/1/99 9,900
4,300 Series 1996-A, 4.10%, 10/1/99 4,300
----------
31,590
----------
KANSAS - 0.5%
6,180 Kansas City Leavenworth & Lenexa
Mortgage Revenue FRN, Series A-31,
4.00%, 10/7/99 6,180
1,000 Olathe IDR VRDN Bond, Series A (AMT),
Diamant Boart, Inc. Project (Deutsche
Bank A.G. LOC), 3.95%, 10/7/99 1,000
3,000 Topeka Temporary Notes, Series 1999 A,
3.50%, 6/1/00 3,004
1,980 Wichita Water & Sewer Utilities Revenue
Bonds (FGIC Insured), 6.50%, 10/1/99 1,980
----------
12,164
----------
KENTUCKY - 3.3%
5,701 Carroll County Solid Waste Disposal
Revenue VRDN (AMT), North American
Stainless Project (Banco Bilbao Vizcaya
LOC), 4.25%, 10/7/99 5,701
2,795 Clark County Industrial Building IDR
VRDN, Series 1996 (AMT), Bluegrass Art
Cast Project (Bank One LOC),
3.95%, 10/7/99 2,795
Daviess County Waste Disposal Facilities
IDR VRDN (AMT), Scott Paper Co.
Project (Kimberly-Clark Corp. Gtd.)
14,600 Series 1993 A, 3.90%, 10/7/99 14,600
1,200 Series 1994 A, 3.90%, 10/7/99 1,200
100 Series 1994 B, 3.90%, 10/7/99 100
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
KENTUCKY - 3.3% (CONT'D.)
$10,000 Kentucky Association of Counties
Advance Revenue Bond, Cash Flow
TRAN, 4.00%, 6/30/00 $10,039
6,000 Kentucky Housing Corp. Housing Revenue
Bonds, Series C (AMT), 3.20%, 12/31/99 6,000
16,000 Kentucky Interlocal School Transportation
Association TRAN, 4.00%, 6/30/00 16,057
17,000 Louisville & Jefferson Counties VRDN,
Series A-1 (AMT), Regional Airport
Authority System (National City Bank of
Louisville LOC), 3.90%, 10/7/99 17,000
----------
73,492
----------
LOUISIANA - 1.6%
2,000 Ascension Parish County Revenue
VRDN (AMT), BASF Corp. Project
(BASF Corp. Gtd.), 4.10%, 10/1/99 2,000
16,810 De Soto Parish PCR Refunding, Series A,
Central Louisiana Electric Co.
(Westdeutsche Landesbank LOC),
3.60%, 10/7/99 16,810
3,550 Louisiana Public Facilities Authority
VRDN, College & University Equipment
Project (FGIC Insured), 3.80%, 10/7/99 3,550
1,400 Louisiana Public Facility Authority
Hospital Revenue Bonds, Series 1993
(AMBAC Insured), Willis-Knighton
Medical Center, 4.00%, 10/7/99 1,400
6,900 Louisiana State G.O. Bonds, Series 1994 A
(AMBAC Insured), Citicorp Eagle Trust,
3.84%, 10/7/99 6,900
4,000 South Louisiana Port Commission
Revenue VRDN, Series 1997 (AMT),
Holnam, Inc. Project (First Wachovia LOC),
3.85%, 10/7/99 4,000
----------
34,660
----------
MAINE - 0.8%
2,000 Fort Fairfield Revenue Bond
(AMT), Atlantic Custom Processors
(PNC Bank LOC), 3.95%, 10/7/99 2,000
5,000 Maine Public Utilities Finance Bank
Revenue VRDN, Series 1996 (AMT), Maine
Public Service Co. Project (Bank of New
York LOC), 3.90%, 10/7/99 5,000
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
99.4% (CONT'D.)
MAINE - 0.8% (CONT'D.)
$9,995 Maine State Housing Authority Variable
Rate COP, Series B (AMT), 3.97%, 10/7/99 $ 9,995
----------
16,995
----------
MARYLAND - 1.2%
2,100 Baltimore City Economic Development
VRDN, Series 1985, Mt. Washington
Pediatric Hospital, Inc. (Mellon Bank
LOC), 4.00%, 10/7/99 2,100
1,000 Baltimore County Economic
Development FRN, Board of
Commissioners Notre Dame Preparatory
School Project (Crestar Bank LOC), 1,000
3.80%, 10/7/99
3,280 Cecil County Economic Development
VRDN (AMT), Steel Techs, Inc. Facilities
(PNC Bank LOC), 3.95%, 10/7/99 3,280
7,811 Maryland State Community Development
Administration Bonds, Series PT-12,
Merrill P-Floats, 3.77%, 10/1/99 7,811
3,995 Maryland State Community Development
Administration Bonds, Series PT-284,
3.85%, 8/24/00 3,995
2,800 Maryland State Economic Development
Corp. VRDN (AMT), Unisite Design, Inc.
(Mellon Bank LOC), 4.10%, 10/7/99 2,800
3,000 Maryland State IDA VRDN, Townsend
Culinary, Inc. Project (SunTrust Banks
LOC), 3.90%, 10/7/99 3,000
2,030 Washington Suburban Sanitary District
General Construction Bond, Series I
(Colld. by U.S. Government Securities),
6.90%, 6/1/00 2,103
----------
26,089
----------
MASSACHUSETTS - 1.1%
3,400 Commonwealth of Massachusetts G.O.
Weekly Refunding Bonds, 3.75%, 10/7/99 3,400
5,000 Massachusetts Bay Transportation
Authority Revenue Bond, Series A
(Colld. by U.S. Government Securities)
7.00%, 3/1/00 5,083
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MASSACHUSETTS - 1.1% (CONT'D.)
$ 5,500 Massachusetts State Development Finance
Agency, Waste Management, Inc. Project
(SunTrust Banks LOC),
3.80%, 10/7/99 $ 5,500
3,100 Massachusetts State HFA SFM Revenue
Notes, Series A, 3.60%, 6/1/00 3,100
1,655 Massachusetts State HFA VRDN, Series
1996-5A (AMT), Clipper Trust Certificate
(AMBAC Insured), 3.98%, 10/7/99 1,655
4,875 Massachusetts State HFA VRDN, Series
PA-132 (AMT), Harbor Point Project
(AMBAC Insured), 3.75%, 10/7/99 4,875
----------
23,613
----------
MICHIGAN - 3.1%
6,000 Jackson County Economic Development
Corp. VRDN (AMT), Production Saw &
Machine Co., (Comerica Bank LOC)
3.85%, 10/7/99 6,000
12,495 Michigan State Building Development
Authority Revenue COP, Series 81,
Morgan Stanley Floating Rate
Trust Certificates, 3.84%, 10/7/99 12,495
16,000 Michigan State HDA, Series B (AMT),
3.00%, 12/1/99 16,000
3,000 Michigan Strategic Fund Limited
Obligation Revenue VRDN, Dirksen Screw
Products Co. Project (Bank One LOC),
3.85%, 10/7/99 3,000
13,000 Michigan Strategic Fund Limited
Obligation Revenue VRDN (AMT),
Dow Chemical Co. Project, 4.10%, 10/1/99 13,000
5,170 Michigan Strategic Fund Limited
Obligation Revenue VRDN (AMT), GT
USA LLC Project (Comerica Bank LOC),
3.85%, 10/7/99 5,170
1,990 Michigan Strategic Fund Limited
Obligation Revenue VRDN (AMT), Kruger
Commodities, Inc. Project (Harris Trust &
Savings Bank LOC), 3.95%, 10/7/99 1,990
5,000 Michigan Strategic Fund Limited
Obligation Revenue VRDN (AMT), Serta
Restokraft Project (Comerica Bank LOC),
3.85%, 10/7/99 5,000
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MICHIGAN - 3.1% (CONT'D.)
$ 900 Midland County Economic Development
Corp. VRDN, Series 1993A (AMT), Dow
Chemical Corp. Project, 4.05%, 10/1/99 $ 900
6,500 Oakland County Economic Development
Corp. Limited Obligation Revenue VRDN
(AMT), Richard & Tool Die Corp.
Project (Comerica Bank LOC),
3.85%, 10/7/99 6,500
----------
70,055
----------
MINNESOTA - 0.6%
11,290 Minnesota State HFA SFM Revenue Bonds,
Series 1998 F (AMT), 3.55%, 8/14/00 11,290
3,060 Stearns County Housing &
Redevelopment Authority VRDN (AMT),
Cold Spring Granite Co. Project
(U.S. Bank LOC), 4.00%, 10/7/99 3,060
----------
14,350
----------
MISSISSIPPI - 1.1%
12,485 Mississippi Gulf Coast Waste Water
Treatment Revenue Refunding VRDN,
Merlot Series 99c698 (MBIA Insured),
3.95%, 10/7/99 12,485
8,965 Mississippi Home Corp., Series A (AMT),
PT-173, 3.90%, 10/7/99 8,965
3,250 Mississippi State SFM Revenue Bonds,
Series G-CL5 (AMT), P-Floats PT-146,
3.90%, 10/7/99 3,250
----------
24,700
----------
MISSOURI - 2.3%
2,000 Missouri Development Finance
Board Infrastructure Facilities IDR Bond,
Series A, Science City Union Station
(Canadian Imperial Bank of Commerce
LOC), 4.10%, 12/1/99 2,003
12,366 Missouri Environmental Improvement
& Energy Revenue Refunding VRDN,
K C Power & Light Co. Project,
3.65%, 3/13/00 12,366
10,000 Missouri Health & Educational Facilities
Authority VRDN, Series A, Missouri Pooled
Hospital Loan Program, 3.80%, 10/7/99 10,000
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MISSOURI - 2.3% (CONT'D.)
$ 500 Missouri Higher Education Loan Authority
Student Loan Revenue VRDN, Series
1990A (AMT) (National Westminster
PLC LOC), 3.90%, 10/7/99 $ 500
1,800 Missouri Higher Education Loan Authority
VRDN, Series B (AMT) (MBIA Insured),
3.95%, 10/7/99 1,800
8,900 Missouri Higher Education Loan Authority
VRDN, Series B (AMT) (National
Westminster LOC), 3.90%, 10/7/99 8,900
4,420 Missouri Housing Development VRDN,
Series A (AMT), Merrill P-Floats PA-116,
3.85%, 10/7/99 4,420
8,000 St. Louis County IDA Multifamily Housing
Revenue VRDN (AMT), Whispering Lakes
Apartment Project (Mercantile Bank of St.
Louis LOC), 3.80%, 10/7/99 8,000
3,000 St. Louis General Fund TRAN, Series
1999-2000, 4.00%, 6/30/00 3,016
----------
51,005
----------
MONTANA - 0.2%
Montana State Board of Housing P-Floats
3,080 Series PA-158, 3.90%, 10/7/99 3,080
2,365 Series PT-87, 3.90%, 10/7/99 2,365
----------
5,445
----------
NEBRASKA - 0.3%
1,700 Nebraska Investment Finance Authority
SFM Revenue FRN, Series A3,
4.00%, 10/7/99 1,700
4,100 Omaha Public Power District
Nebraska Electric Revenue Bonds,
Series A, 4.30%, 2/1/00 4,108
----------
5,808
----------
NEVADA - 0.9%
1,710 Clark County Public Safety G.O. Bonds,
4.00%, 2/1/00 1,715
12,500 Nevada State Department Business &
Industry PCR VRDN (AMT), Barrick
Goldstrik Mines (Royal Bank of
Canada LOC), 3.85%, 10/7/99 12,500
6,200 Nevada Municipal Bond Trust Receipts
Certificates, Series 1997-SGB 31
(FGIC Insured), 3.87%, 10/7/99 6,200
----------
20,415
----------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
99.4% (CONT'D.)
NEW JERSEY - 0.5%
$10,000 Jersey City G.O. Refunding Notes,
3.625%, 1/14/00 $10,012
----------
NEW MEXICO - 0.3%
1,500 Farmington PCR VRDN,
Farmington Public Service (AMT),
(Barclays Bank LOC), 4.00%, 10/1/99 1,500
5,140 New Mexico Mortgage Finance Authority
P-Floats, Series PT-196 (AMT),
3.90%, 10/7/99 5,140
----------
6,640
----------
NEW YORK - 2.3%
3,000 Nassau County G.O. RAN
(Bank of New York LOC), 4.25%, 3/15/00 3,009
8,900 Nassau County TAN, Series C,
3.50%, 12/22/99 8,909
1,100 New York City G.O. VRDN,
Sub Series A-7, (Morgan Guaranty LOC),
3.80%, 10/1/99 1,100
New York State Dormitory Authority
VRDN, Series A, Rockefeller University,
Citicorp Eagle Trust
6,100 No. 973201, 3.87%, 10/7/99 6,100
5,000 No. 973202, 3.87%, 10/7/99 5,000
16,725 New York State Environmental Facilities
Corp. PCR VRDN, Eagle Trust No. 94302,
Weekly Option (FSA Insured),
3.15%, 10/7/99 16,725
10,850 New York State Medical Care Facilities
Finance Agency Revenue Refunding
Bond, Series B, St. Lukes (Colld. by U.S.
Govenment Securities), 7.45%, 2/15/00 11,104
----------
51,947
----------
NORTH CAROLINA - 2.3%
2,200 Brunswick County IDA PCR VRDN, Series
1996 (AMT), Armada Project (Bank of
America Corp. LOC), 3.90%, 10/7/99 2,200
5,700 Capital Regional Airport Commission
Passenger Facilities Charge Revenue VRDN
(AMT) (First Union National Bank of
Charlotte LOC), 3.90%, 10/7/99 5,700
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
NORTH CAROLINA - 2.3% (CONT'D.)
$ 7,000 Catawba County IDA PCR VRDN,
Series 1996 (AMT), Hooker Furniture Corp.
Project (Bank of America Corp. LOC),
3.90%, 10/7/99 $ 7,000
3,000 Columbus County Industrial Facilities &
Finance Authority PCR VRDN (AMT),
Conflandey, Inc. Project (Banque
Nationale de Paris LOC), 3.95%, 10/7/99 3,000
2,400 Mecklenburg County Industrial Facilities &
Finance Authority PCR VRDN (AMT),
SteriGenics International Project
(Comerica Bank LOC), 3.95%, 10/7/99 2,400
495 North Carolina HFA SFM Tender Option
Revenue Bond, 3.65%, 3/1/00 495
12,200 North Carolina Medical Care Community
Hospital Revenue Bond, Pooled
Equipment Finance Project
(MBIA Insured), 3.70%, 10/7/99 12,200
3,600 North Carolina State Ports Authority
VRDN, Series 1996 (AMT), Morehead City
Terminals, Inc. (Bank of America Corp.
LOC), 3.90%, 10/7/99 3,600
7,385 North Carolina State ROC, Series 48,
3.87%, 10/7/99 7,385
2,420 Raleigh COP, Equipment Acquisition
Project, 3.00%, 12/1/99 2,420
5,000 Wake County Industrial Pollution Finance
Facility Authority VRDN, Series C,
Carolina Power & Light Project
(First Union National Bank LOC),
3.70%, 10/7/99 5,000
----------
51,400
----------
NORTH DAKOTA - 0.4%
8,000 North Dakota State HFA Home Mortgage
Finance Revenue Bond, Housing Finance
Program, Series E (AMT), 3.80%, 9/29/00 8,000
----------
OHIO - 3.5%
15,000 Clinton County Hospital Revenue Bonds
VRDN, Ohio Hospital Cap. Inc. Pooled
Financing (Fifth Third Bank LOC),
3.80%, 10/7/99 15,000
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
OHIO - 3.5% (CONT'D.)
$ 6,330 Dublin Inn Tax-Exempt Mortgage Bond
Trust, Series 1987 (Huntington National
Bank LOC), 4.57%, 3/1/00 $ 6,330
12,000 Ohio State Air Quality Development
Authority VRDN, Series A, Ohio Edison
Project (Toronto-Dominion Bank LOC),
2.95%, 2/1/00 12,000
4,500 Ohio State Air Quality Development
Authority PCR VRDN, Cleveland Electric
Illuminating Project (FGIC Insured),
3.25%, 11/12/99 4,500
1,000 Ohio State Air Quality Development
Authority PCR VRDN, Ohio Edison Co.
Project (AMT), (Union Bank of
Switzerland LOC), 4.20%, 5/1/00 1,004
25,000 Ohio State HFA Residential Mortgage
Revenue VRDN, Series A-2 (AMT),
3.05%, 3/1/00 25,000
3,000 Ohio State Solid Waste Revenue Bonds,
Series 99 (AMT), BP Exploration & Oil
Project, 4.00%, 10/1/99 3,000
2,900 Ohio State Turnpike Commission Revenue
Bonds, Weekly Option Period, PCR-18
(FGIC Insured), 4.02%, 10/7/99 2,900
6,600 Student Loan Funding Corp.
Revenue Refunding VRDN, Series A-1
(AMT), 3.75%, 10/7/99 6,600
2,055 Union County IDR VRDN (AMT), Union
Aggregates Co. Project (PNC Bank LOC),
3.95%, 10/7/99 2,055
----------
78,389
----------
OKLAHOMA - 1.0%
6,050 Oklahoma HFA SFM Revenue Bonds
(AMT), PT-78, 3.30%, 3/9/00 6,050
Tulsa City Airport Improvement VRDN
(AMT) (MBIA Insured)
6,740 Series B-1, 3.92%, 10/7/99 6,740
9,390 Series B-2, 3.92%, 10/7/99 9,390
----------
22,180
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
OREGON - 0.8%
$ 2,585 Medford Hospital Facilities Authority
Revenue, Series A (MBIA Insured), Asante
Health System, 4.50%, 8/15/00 $ 2,602
1,100 Metropolitan Service District Riedel
Compost Waste Disposal VRDN (AMT)
(US Bank LOC), 4.00%, 10/7/99 1,100
4,500 Oregon Housing & Community Services
Department SFM Bond Program, Series H,
3.48%, 6/29/00 4,500
3,900 Oregon State Economic Development
Revenue, Series 176 (AMT), Cascade Steel
Rolling Mills Project (Commerzbank A.G.
LOC), 3.90%, 10/7/99 3,900
6,600 Oregon State Economic Development
Revenue, Series 181 (AMT), Oregon Metal
Slitters, Inc. (Key Bank N.A. LOC),
3.95%, 10/7/99 6,600
----------
18,702
----------
PENNSYLVANIA - 3.0%
1,400 Allegheny County Hospital Development
Bonds, Series B-2, Presbyterian University
Hospital (Bank One LOC), 3.85%, 10/1/99 1,400
2,900 Allegheny County Hospital Development
Authority Revenue VRDN, Series D (MBIA
Insured), Presbyterian Health Center,
3.90%, 10/1/99 2,900
3,700 Chester County IDA Bonds, Series 1997 A
(AMT), KAC III Realty Corp. Project (PNC
Bank LOC), 3.95%, 10/7/99 3,700
22,500 Delaware Valley Regional Finance
Authority VRDN, Series 1997 A, Merrill
Lynch P-Floats PT-104 (AMBAC Insured),
3.50%, 11/4/99 22,500
3,500 Pennsylvania Economic Development
Finance Authority IDR VRDN, Series
1996 A1-8 (AMT) (PNC Bank LOC),
3.95%, 10/7/99 3,500
9,250 Pennsylvania Economic Development
Finance Authority Revenue Bond (AMT),
Approved Solid Waste Project, (Bayerisch
Landesbank LOC), 3.25%, 12/15/99 9,250
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
99.4% (CONT'D.)
PENNSYLVANIA - 3.0% (CONT'D.)
$ 3,050 Pennsylvania Higher Educational
Assistance Agency Student Loan Revenue
Bond, Series A (SLMA LOC),
3.90%, 10/7/99 $ 3,050
1,000 Pennsylvania Higher Educational Facilities
Authority Revenue Bond, Series C,
University of Pennsylvania Health Services,
(Morgan Guaranty LOC), 3.85%, 10/7/99 1,000
4,000 Philadelphia Hospital & Higher Education
Facilities VRDN, Series B, Jefferson Health
System, 3.25%, 3/31/00 4,000
3,000 Philadelphia TRAN, Series 1999-2000,
4.25%, 6/30/00 3,016
4,000 Pittsburgh Urban Redevelopment
Authority Bonds, Series C (AMT),
3.20%, 12/1/99 4,000
6,000 Quakertown Hospital Authority VRDN,
HPS Group Pooled Finance (PNC Bank
LOC), 3.90%, 10/7/99 6,000
3,025 Washington County IDA Revenue VRDN
(AMT), Accutrex Products, Inc. Project
(Mellon Bank LOC), 4.10%, 10/7/99 3,025
----------
67,341
----------
SOUTH CAROLINA - 0.6%
5,400 Cherokee County IDR VRDN, Series 1989
(AMT), Oshkosh Truck Corp. Project
(Bank of America Corp. LOC),
3.95%, 10/7/99 5,400
1,000 Florence County Public Facilities Corp.
Bonds, Law Enforcement Project-Civic
Center (Colld. by U.S. Government
Securities), 7.60%, 3/1/00 1,023
200 Lexington County IDA PCR VRDN,
Series A, AlliedSignal Project,
3.95%, 10/7/99 200
900 Lexington County Pollution Control
Facilities Revenue Bond, Series A, Allied
Signal Project, 3.95%, 10/7/99 900
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
SOUTH CAROLINA - 0.6% (CONT'D.)
$5,400 South Carolina Jobs Economic
Development Authority Revenue VRDN
(AMT), Virtual Image Technology
(Bank of America Corp. LOC),
3.95%, 10/7/99 $ 5,400
----------
12,923
----------
SOUTH DAKOTA - 0.6%
5,800 Lawrence County Solid Waste Bonds,
Homestake Mining of CA, Series 1997A
(AMT), (Chase Manhattan Bank LOC),
4.05%, 10/1/99 5,800
8,410 South Dakota Economic Development
Finance Authority VRDN, Series 1996
(AMT), Hastings Filters, Inc. Project
(Harris Trust & Savings Bank LOC),
3.90%, 10/7/99 8,410
----------
14,210
----------
TENNESSEE - 4.6%
1,300 Dickson County IDR VRDN, Series 1996
(AMT), Tennessee Bun Co. LLC Project
(PNC Bank LOC), 3.95%, 10/7/99 1,300
6,000 Jackson City Waste Facilities IDR VRDN,
Series 1995 (AMT), Florida Steel Corp.
Project (Bank of America Corp. LOC),
3.90%, 10/7/99 6,000
2,100 Knox County G.O. Public Improvement
Bonds, 4.50%, 4/1/00 2,114
8,600 Knox County Health, Educational &
Housing VRDN, THA Solutions
Group, Inc. (CDC Funding Corp. LOC),
3.80%, 10/7/99 8,600
5,000 Metropolitan Government Nashville &
Davidson Counties Health & Education
Facilities Board Revenue VRDN, Series A
(AMT), Old Hickory Towers (FHLB LOC),
3.90%, 10/7/99 5,000
1,360 Montgomery County Public Building
Authority Adjustable Loan Pooled Finance
Revenue Bonds, Series 1996 (Bank of
America LOC), 3.80%, 10/7/99 1,360
2,000 Morristown City IDR VRDN, Series 1997
(AMT), BOS Automotive Products, Inc.
(Hypo-Vereinsbank LOC),
3.90%, 10/7/99 2,000
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
Tennessee - 4.6% (CONT'D.)
$23,175 Nashville & Davidson Counties Electric
Revenue VRDN, Citicorp Eagle Trust,
3.87%, 10/7/99 $ 23,175
1,300 Nashville & Davidson Counties
Health & Education Facilities Board
Revenue VRDN, Series 1996-A, Adventist
Health Systems-Sunbelt (SunTrust Banks
LOC), 3.80%, 10/7/99 1,300
4,160 Sevier County Public Building Authority
Local Government Public Improvement
Bonds, Series E-2 (AMT) (AMBAC Insured),
3.85%, 10/7/99 4,160
11,400 Shelby County G.O. Bond, Series 1996 B,
Soc Gen Trust SGB-21 (FSA Insured),
3.87%, 10/7/99 11,400
1,000 Shelby County Health & Educational
Housing Facilities Board Multi-family
Housing Revenue VRDN (AMT), Arbor Lake
Project (PNC Bank LOC),
3.95%, 10/7/99 1,000
8,500 Signal Mountain Health Education
Revenue Refunding Bonds, Alexian Village
Project (FSA Insured), 3.30%, 2/29/00 8,500
Tennessee State HDA Homeownership
Program Revenue Bonds (AMT),
15,000 Series 3-C, 3.10%, 11/18/99 15,000
12,500 Series PG 2-C, 3.57%, 8/15/00 12,500
----------
103,409
----------
TEXAS - 16.5%
13,200 Austin Airport System Revenue Bonds,
Series A (Morgan Guaranty Trust LOC),
3.75%, 10/7/99 13,200
5,000 Austin Utility System Revenue Bonds
(Colld. by U.S. Government Securities),
10.00%, 5/15/00 5,204
10,500 Bastrop Independent School District G.O.
VRDN, Municipal Securities Trust Receipts,
Series SGB-37 (PSF of Texas Gtd.),
3.87%, 10/7/99 10,500
21,350 Brazos River Authority PCR Refunding
Bond, Series C3 (Bank of America Corp.
LOC), 3.50%, 6/19/00 21,350
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
TEXAS - 16.5% (CONT'D.)
$ 5,600 Brazos River Authority PCR Refunding
Bond VRDN, Series 1996-B (AMT), Texas
Utilities Electric Co. Project
(AMBAC Insured), 4.30%, 10/1/99 $ 5,600
13,100 Brazos River Authority PCR Refunding
Bond VRDN, Series 1997-A (AMT), Texas
Utilities Electric Co. Project
(MBIA Insured), 4.10%, 10/1/99 13,100
2,150 Brazos River Authority PCR Refunding
Bond, Series 1997-B (AMT) (MBIA
Insured), Texas Utilities Electric Co.,
4.05%, 10/1/99 2,150
6,250 Brazos River Harbor District Brazoria
County VRDN (AMT), BASF Corp. Project,
4.10%, 10/1/99 6,250
2,500 Brazos River Harbor District VRDN,
Series 1996 (AMT), BASF Corp. Project,
4.10%, 10/1/99 2,500
5,000 Calhoun County Navigation IDR VRDN
(AMT), Formosa Plastics Corp. U.S.A.
(Bank of America Corp. LOC),
3.80%, 10/7/99 5,000
9,600 Comal Independent School District,
ABN-AMRO MuniTops Trust Certificates
(PSF Gtd.), 3.90%, 10/7/99 9,600
28,995 Dallas G.O. Refunding Bonds, Morgan
Stanley Floating Rate Certificates,
Series 93, 3.85%, 10/7/99 28,995
8,000 Denton County Independent School
District G.O., Series B (PSF of Texas Gtd.),
3.65%, 8/15/00 8,000
3,500 El Paso City Housing Finance Corp.
VRDN, Series 1993 (AMT), Viva Apartments
Project (General Electric Corp. LOC),
3.95%, 10/7/99 3,500
7,850 Galveston County Housing Finance Corp.
SFM Revenue Bond, Series PT 205 (AMT),
P-Floats, 3.90%, 10/7/99 7,850
5,000 Greater Texas Student Loan Corp., Series A
(AMT) (SLMA LOC), 3.00%, 2/1/00 5,000
Gulf Coast Waste Disposal Authority VRDN,
Series 1994 (AMT), BP Amoco PLC Project
1,800 4.00%, 10/1/99 1,800
4,600 3.15%, 10/1/99 4,600
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
99.4% (CONT'D.)
TEXAS - 16.5% (CONT'D.)
$11,485 Harris County Health Facilities
Development Corp. Revenue Bonds,
Series 6, Sisters of Charity of the Incarnal
Word Project, 3.95%, 10/7/99 $11,485
11,880 Harris County Toll Road Unlimited Tax
Subordinate Lien Revenue Bonds, CR138,
3.84%, 10/7/99 11,880
20,420 Harris County Toll Road Unlimited Tax
VRDN, Series 1994 A, Citicorp Eagle Trust
No. 954302, 3.84%, 10/7/99 20,420
19,000 Harris County VRDN, Subordinate Lien
Toll Road Bond, 3.95%, 10/7/99 19,000
10,000 Nueces River Authority Water Supply
Revenue Bond, Series 974306 (FSA
Insured), Corpus Christi Lake Project,
3.84%, 10/7/99 10,000
5,000 Port Arthur Navigation District Revenue
VRDN (AMT), BASF Corp. Project,
4.10%, 10/1/99 5,000
15,025 Port Arthur Navigation District Revenue
VRDN (AMT), Fina Oil & Chemical Co.
Project, 4.15%, 10/1/99 15,025
Port of Corpus Christi Solid Waste Disposal
VRDN, Koch Refining Co. Project (AMT)
22,200 3.85%, 10/7/99 22,200
23,000 Series 1996, 3.85%, 10/7/99 23,000
1,230 Richardson City Independent School
District G.O. Refunding Bonds,
4.75%, 2/15/00 1,238
4,000 Sabine River Authority PCR Bond,
Series B (AMT) (AMBAC Insured), Texas
Utilities Electric Co., 4.05%, 10/1/99 4,000
5,000 San Antonio City Electric & Gas System
Revenue Bonds, Series A, Municipal Trust
Certificates No. 32, 3.92%, 10/7/99 5,000
9,240 San Antonio Independent School District
ROC, Series 30 (PSF Gtd.), 3.87%, 10/7/99 9,240
35,000 State of Texas TRAN, Series A,
4.50%, 8/31/00 35,242
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
TEXAS - 16.5% (CONT'D.)
$ 6,401 Texas Department of Housing and
Community Affairs SFM VRDN,
Series PA-128 (AMT) (MBIA Insured),
3.85%, 8/10/00 $ 6,401
5,200 Trinity River IDA Revenue Bonds,
Automatic Data Processing, Inc. Project,
4.35%, 10/1/99 5,200
10,000 University of Texas Financing System,
Series B, 3.82%, 10/7/99 10,000
----------
368,530
----------
UTAH - 1.4%
2,500 Intermountain Power Agency
Power Supply Revenue Bonds,
Series 1985-B (Colld. by U.S. Government
Securities), 10.375%, 7/1/00 2,646
4,800 Intermountain Power Agency Revenue
Bonds, Eagle Trust CR-331 (FSA Insured),
3.84%, 10/7/99 4,800
15,000 Intermountain Power Agency
Variable Rate Revenue Bonds, Series E
(AMBAC Insured), 3.625%, 3/15/00 15,000
7,665 Intermountain Power Supply Revenue
Bonds, Municipal Securities Trust Receipts,
Series SG-6 (FSA Insured), 3.85%, 10/7/99 7,665
----------
30,111
----------
VERMONT - 0.2%
4,250 Vermont Housing Finance Agency
Single Family Housing Notes, Series 10-C
(AMT), 3.15%, 4/28/00 4,250
----------
VIRGINIA - 2.7%
3,700 Botetourt County IDR VRDN (AMT),
Valley Forge Co. Project (Harris Trust &
Savings Bank LOC), 3.95%, 10/7/99 3,700
12,500 Dinwiddie County IDA VRDN, Series A
(AMT), Chaparral Steel Project (Bank of
America Corp. LOC), 4.00%, 10/1/99 12,500
9,935 Fairfax County Economic Development
Authority Resource Recovery Revenue
Refunding Bonds, Series A (AMT) (AMBAC
Insured), 5.50%, 2/1/00 10,004
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
VIRGINIA - 2.7% (CONT'D.)
$ 3,900 Halifax County IDA VRDN, Series 1998
(AMT), D-Scan, Inc. Project (Bank of
America Corp. LOC), 3.90%, 10/7/99 $ 3,900
12,300 Norfolk City G.O. VRDN, Citicorp Eagle
Trust No. 944601, 3.92%, 10/7/99 12,300
1,069 Roanoke IDA VRDB, Carilion Health
System, Series B, 3.95%, 10/1/99 1,069
15,615 Virginia State G.O. VRDN, Series 1994,
Citicorp Eagle Trust No. 954601,
3.84%, 10/7/99 15,615
----------
59,088
----------
WASHINGTON - 4.1%
1,200 Kent City Economic Development Corp.
IDR VRDN, Associated Grocers Project
(Bank of America Corp. LOC),
4.38%, 10/7/99 1,200
4,190 Port of Anacortes IDA IDR Bond, Texaco
Project, 3.40%, 10/7/99 4,190
5,100 Seattle City Municipal Light & Power
Adjustable Rate Revenue Bonds,
Series 1996, 3.65%, 10/7/99 5,100
21,700 Washington G.O. Refunding Bonds,
Eagle Trust Series 1993-C,
3.84%, 10/7/99 21,700
300 Washington Health Care Facilities
Authority Bond, Series 1985-B,
Sisters of Providence (Rabobank Group
LOC), 3.75%, 10/1/99 300
21,200 Washington Public Power Supply System
Revenue Bonds, Series 1994, Citicorp
Eagle Trust, 3.97%, 10/7/99 21,200
8,000 Washington Public Power Supply System
Revenue Bonds, Series A, Project No. 2
(Colld. by U.S. Government Securities),
7.375%, 7/1/00 8,347
6,000 Washington Public Power Supply System
Revenue Refunding Bonds, Series B,
Project No. 3, 7.10%, 7/1/00 6,154
11,950 Washington State G.O., Municipal Trust
Receipts Certificates, SGB-13,
Series 1993-B, 3.87%, 10/7/99 11,950
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
WASHINGTON - 4.1% (CONT'D.)
$ 7,555 Washington State G.O., Series B,
4.25%, 1/1/00 $ 7,573
3,800 Washington State Housing Finance
Commission Single Family Program
VRDN, Series 1A-S (AMT), 3.00%, 2/1/00 3,800
----------
91,514
----------
WEST VIRGINIA - 0.4%
1,300 Brooke County IDR, Series 1997 (AMT),
Star-Kist Foods, Inc. Project (H.J. Heinz Co.
Gtd.), 3.95%, 10/7/99 1,300
Marion County Solid Waste Disposal
Facilities Revenue VRDN (AMT), Granttown
Project (National Westminster Bank LOC)
3,400 Series B, 3.90%, 10/7/99 3,400
3,000 Series C, 3.90%, 10/7/99 3,000
2,000 Ritchie County IDR VRDN (AMT),
Simonton Building Products, Inc. Project
(PNC Bank LOC), 3.95%, 10/7/99 2,000
----------
9,700
----------
WISCONSIN - 3.5%
4,225 Altoona School District BAN,
3.70%, 4/1/00 4,235
2,500 Luxemburg-Casco School District BAN,
3.60%, 12/15/99 2,501
4,500 Mauston School District No. 1, BAN,
3.70%, 4/1/00 4,504
5,800 Medford Area School District BAN,
4.35%, 12/1/99 5,810
2,950 Milwaukee City Redevelopment VRDN,
Series 1996 (AMT), Starline Manufacturing,
Inc. (Harris Trust & Savings Bank LOC),
3.95%, 10/7/99 2,950
5,515 Milwaukee Metropolitan Sewer District
G.O. Refunding Bonds, Series 1997A,
PT 1173, 3.70%, 2/17/00 5,515
5,220 Milwaukee Redevelopment Authority
VRDN, Series 1986 (AMT), Washington
Square Phase III (La Salle National Bank
LOC), 4.05%, 10/7/99 5,220
10,000 Milwaukee Short Term School Notes
Trust Receipts Certificates, Series A37,
3.90%, 10/7/99 10,000
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
99.4% (CONT'D.)
WISCONSIN - 3.5% (CONT'D.)
$ 2,350 Mukwonago School District BAN,
3.75%, 11/1/99 $ 2,351
2,000 Oregon Wisconsin G.O. Promissory Notes
3.70%, 3/15/00 2,002
4,290 Pewaukee IDR VRDN, Series 1992
(AMT), HUSCO International, Inc. Project
(Bank One LOC), 3.90%, 10/7/99 4,290
6,000 River Falls School District BAN,
3.75%, 11/1/99 6,004
850 Sheboygan PCR Bonds, Series 1995,
Wisconsin Electric Co. Project (Wisconsin
Electric Co. Gtd.), 3.85%, 10/7/99 850
11,550 Wisconsin Clean Water Revenue Bonds,
P-Floats, Series PT-1181,
3.85%, 8/24/00 11,550
801 Wisconsin Health and Education Revenue
Bond, Series 1994 A, Sinai Samaritan
Medical Center Project (M&I Bank LOC),
3.80%, 10/7/99 801
5,000 Wisconsin Housing and Economic
Development Authority Home Ownership
Revenue Bonds, Series I (AMT),
3.55%, 8/15/00 5,000
5,000 Wisconsin Housing and Economic
Development Authority Revenue Floating
Rate Trust Receipts, Series 1997 (AMT),
4.05%, 10/7/99 5,000
----------
78,583
----------
WYOMING - 0.5%
Lincoln County PCR (AMT),
Exxon Project
2,200 Series A, 4.00%, 10/1/99 2,200
8,000 Series B, 4.00%, 10/1/99 8,000
2,400 Platte PCR Bonds, Series 1984-A,
Tri-State Generation & Transmission
Association (Natural Rural Utilities
Coop Finance Co. LOC), 4.25%, 10/1/99 2,400
----------
12,600
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MULTIPLE STATES POOLED SECURITIES - 2.6%
$15,975 Greystone County Variable Rate Senior
Certificate Trust, Series 1998-1 (Credit
Suisse First Boston LOC),
3.96%, 10/7/99 $ 15,975
34,415 Pooled Puttable Float Options (AMT),
PPT-7D (Backed by Various Housing
Agencies), 3.375%, 2/10/00 34,415
6,450 Pooled Puttable Float Option (AMT),
Series PT6 (Backed by Various Housing
Agencies), 3.70%, 5/11/00 6,450
1,030 Pooled Puttable VRDN, Series PPT2
(Backed by Alaska HFA & South Dakota
HDA), 3.78%, 10/1/99 1,030
----------
57,870
----------
Total Municipal Investments
(cost $2,220,890) 2,220,890
----------
NUMBER
OF SHARES
(000S)
- ----------
OTHER - 0.2%
657 AIM Tax Free Money Market Fund 657
800 Dreyfus Tax-Exempt Cash
Management Fund 800
321 Federated Tax Free Trust Money Market
Fund No. 15 321
500 Federated Tax Free Trust Money Market
Fund No. 73 500
1,300 Provident Municipal Cash Fund (AMT) 1,300
298 Provident Municipal Fund 298
----------
Total Other
(cost $3,876) 3,876
----------
Total Investments - 99.6%
(cost $2,224,766) 2,224,766
Other Assets less Liabilities - 0.4% 8,908
----------
NET ASSETS - 100.0% $2,233,674
==========
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
CALIFORNIA MUNICIPAL MONEY MARKET FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 99.3%
CALIFORNIA - 92.8%
$10,000 Alameda County California Board of
Education TRAN, 3.50%, 6/30/00 $ 9,998
3,000 Anaheim Union High School District,
1999 School Facility Bridge COP
(FSA Insured), 3.50%, 10/7/99 3,000
1,400 California HFA Home Mortgage Revenue
FRN, Merrill P-Floats PT-14,
Series 1993-B, 3.52%, 10/7/99 1,400
California HFA Housing Revenue FRN,
Merrill P-Floats,
1,340 Series 1991-G PT-40D (AMT),
3.57%, 10/7/99 1,340
115 PT-56 (AMT), 3.57%, 10/7/99 115
7,485 California HFA Housing Revenue FRN,
Series A-2 PT-258 (AMT), SFM Program,
2.95%, 1/13/00 7,485
7,125 California HFA Multifamily Housing
Revenue FRN, Series III-D (AMT)
(Morgan Guaranty Trust LOC),
3.75%, 10/7/99 7,125
11,500 California Health Facility Finance
Authority Kaiser Permanente FRN,
Morgan Stanley Muni Trust, Series 1998-26
(FSA Insured), 3.52%, 10/7/99 11,500
California Health Facility Finance
Authority Revenue Bonds,
Catholic Healthcare West (MBIA Insured)
2,400 Series 1995 D,
3.40%, 10/7/99 2,400
3,500 Series 1996 D,
3.40%, 10/7/99 3,500
2,800 Series 1997 B,
3.40%, 10/7/99 2,800
4,000 California HFA Home Mortgage Revenue
Bonds, Series D (AMT), 3.02%, 4/30/00 4,000
2,900 California HFA Multi-Unit Housing
Revenue FRN, Series 92A CR-231
(MBIA Insured), 3.55%, 3/1/00 2,900
1,100 California Pollution Control Finance
Authority PCR Bond, Series F, Pacific
Gas & Electric Co. (Banque Nationale de
Paris LOC), 3.70%, 10/1/99 1,100
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CALIFORNIA - 92.8% (CONT'D.)
$1,700 California Pollution Control Finance
Authority Revenue Bond,
Series 1997 A (AMT), ARCO Project
(Atlantic Richfield Co. Gtd.),
3.50%, 10/7/99 $1,700
3,000 California Pollution Control Finance
Authority Revenue Bond, Series 1997 A,
Pacific Gas & Electric Co.
(Toronto-Dominion Bank LOC),
3.70%, 10/1/99 3,000
7,300 California Pollution Control Finance
Authority Revenue Bond, Series 1997 B
(AMT), Air Products Manufacturing Co.
(Air Products & Chemicals Corp. Gtd.),
4.00%, 10/7/99 7,300
1,600 California Pollution Control Finance
Authority Revenue Bond, Series 1997 C
(AMT), Pacific Gas & Electric Co.
(KBC Bank LOC), 3.75%, 10/1/99 1,600
3,600 California Pollution Control Finance
Authority Revenue Bond, Series A (AMT)
Pacific Gas & Electric Co. (UBS AG LOC),
3.30%, 10/7/99 3,600
California Pollution Control Finance
Authority Revenue Bond, Shell Oil Co.
Project 1991 (Shell Oil Co., Gtd.)
4,450 Series A, 3.45%, 10/1/99 4,450
1,450 Series C, 3.45%, 10/1/99 1,450
2,800 California School Facilities Financing
Corp. COP, Series D (KBC Bank LOC),
3.20%, 10/7/99 2,800
7,455 California State Department of Water
Resources VRDN,
ML/SG Muni Trust, Series SG-5,
3.52%, 10/7/99 7,455
2,000 California State Economic Development
Finance Authority IDR Bond, Series 1998
(AMT), Lion Raisins Project
(Bank of America Corp. LOC),
3.35%, 10/7/99 2,000
3,500 California State Economic Development
Finance Authority, Series 1998 D, California
Independent Systems Operator Corp.
(Bank of America Corp. LOC),
4.00%, 10/1/99 3,500
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
CALIFORNIA MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
99.3% (CONT'D.)
CALIFORNIA - 92.8% (CONT'D.)
$20,170 California State G.O. Bank of America Corp.
Variable Rate Certificate, Series 1997 H
(Colld. by U.S. Government Securities),
3.87%, 10/7/99 $20,170
California G.O. Citibank Tender Option
Bond (FGIC Insured),
7,400 Series CR-52, 3.67%, 10/7/99 7,400
1,500 Series 5027 C, 3.67%, 10/7/99 1,500
California State G.O. CP,
2,400 Series A, 2.95%, 10/8/99 2,400
5,000 Series A, 3.10%, 11/8/99 5,000
2,900 Series A, 3.10%, 11/9/99 2,900
3,415 California State G.O. Tender Option
Custodial Receipt (MBIA Insured),
3.80%, 10/7/99 3,415
5,200 California State PCR Bond,
Series C, Southern California Edison
Project (Southern California Edison
Corp. Gtd.), 4.05%, 10/1/99 5,200
California State PCR Bond,
Southern California Edison Project
(Southern California Edison Corp. Gtd.),
8,805 4.05%, 10/1/99 8,805
1,000 3.40%, 2/22/00 1,000
2,000 3.40%, 3/7/00 2,000
9,620 California State Various Purpose G.O.
Bonds Merrill Lynch Floating Rate Receipts
SG-91 (FGIC Insured),
3.52%, 10/7/99 9,620
3,500 California Statewide Community
Development Authority IDR Bonds,
Series 1998 A (AMT), A & B Die Casting Co.
(Bank of America Corp. LOC),
3.40%, 10/7/99 3,500
1,200 California Statewide Community
Development Authority Multifamily
Housing Revenue Bond, Series S (AMT)
Concord Green Apartments (FHLB LOC),
3.40%, 10/7/99 1,200
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CALIFORNIA - 92.8% (CONT'D.)
Chula Vista IDR Bond,
San Diego Gas & Electric Co.,
$ 2,400 Series 1996 A, 3.50%, 10/1/99 $ 2,400
18,000 Series 1996 B (AMT), 4.15%, 10/1/99 18,000
17,835 Contra Costa County Home Mortgage
Revenue Variable Rates Certificates, Series
1997 C (Colld. by U.S. Government
Securities), 3.77%, 10/7/99 17,835
4,000 Desert Sands California Unified School
District 1999 TRAN,
3.50%, 7/7/00 4,011
1,625 Eastern Municipal Water District of
California COP (Colld. by U.S.
Government Securities),
6.80%, 11/1/99 1,630
5,000 Elk Grove California Unified School
District 1999-2000 TRAN,
4.50%, 6/30/00 5,040
2,200 Irvine City Assessment District 97-17
Limited Obligation Improvement Bond
(HypoVereinsbank LOC),
3.50%, 10/1/99 2,200
4,500 Irvine Ranch Consolidated Water
District 2, 102, 103 & 206 Water and
Sewer FRN, Series 1993 B (Toronto
Dominion Co. LOC), 3.60%, 10/1/99 4,500
5,100 Irvine Ranch Consolidated Water
Districts 105, 140, 240 & 250, Series 95
(Commerzbank A.G. LOC),
3.50%, 10/1/99 5,100
4,000 Irvine Ranch Consolidated Water
Districts 284 Project,
(Landesbank Hessen Thuringen
Girozentral LOC),
3.95%, 10/1/99 4,000
1,000 Irvine Ranch Consolidated Water District
Refunding Bond, Series 1985 B
(Landesbank Hessen Thuringen
Girozentral LOC), 3.95%, 10/1/99 1,000
1,100 Irvine Ranch Water District Refunding
Bond, Districts 102, 103 & 105
(Commerzbank A.G. LOC),
3.50%, 10/1/99 1,100
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CALIFORNIA - 92.8% (CONT'D.)
$3,900 Irvine Ranch Water District 282-A
Revenue Bond (Landesbank
Hessen Thuringen Girozentral LOC),
3.95%, 10/1/99 $3,900
2,500 Irvine Ranch Water District Revenue Bond,
Series 1985 (Landesbank Hessen Thuringen
Girozentral LOC), 3.50%, 10/1/99 2,500
2,100 Irvine Ranch Water District Revenue Bond,
Series 1991 (National Westminster Bank
LOC), 3.50%, 10/1/99 2,100
3,700 Kern County Public Facilities Project COP,
Series A (UBS A.G. LOC),
3.40%, 10/7/99 3,700
2,700 Livermore Multifamily Housing Revenue
Bond, Series A (AMT), Portola Meadows
Apartments (Bank of America Corp. LOC),
3.45%, 10/7/99 2,700
3,000 Long Beach TRAN, Series 1998-99,
4.00%, 10/5/99 3,000
1,700 Los Angeles City Multifamily Housing
Revenue Refunding Bond,
Series 1995 D (AMT), Coral Wood Court
Project (Union Bank of California LOC),
4.00%, 10/6/99 1,700
3,000 Los Angeles City Schools Pooled Financing
Program TRAN, Series 1999 A,
4.00%, 6/30/00 3,019
7,075 Los Angeles Community Development
VRDN, Promenade Towers
(Barclays Bank LOC), 3.45%, 10/7/99 7,075
1,525 Los Angeles Convention and Exhibition
Center Revenue VRDN,
Merrill P-Floats, Series 1993 PA-88 (MBIA
Insured), 3.52%, 10/7/99 1,525
3,100 Los Angeles County Metropolitan
Transportation Authority
Proposition C Sales Tax Revenue Bond
(MBIA Insured), 3.40%, 10/7/99 3,100
300 Los Angeles County Metropolitan
Transportation Authority Refunding
Bond, ML/SG Muni Trust, SGB-1
(FSA Insured), Union Station Project,
3.62%, 10/7/99 300
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CALIFORNIA - 92.8% (CONT'D.)
$ 4,200 Los Angeles State Housing Revenue Bond,
Series 1996-6A, Clipper Trust Certificates
(AMT) (Colld. by FNMA Securities),
3.31%, 10/7/99 $ 4,200
Metropolitan Water District of Southern
California CP, Series B,
10,400 2.90%, 10/8/99 10,400
1,000 3.35%, 3/7/00 1,000
1,100 Metropolitan Water District of Southern
California Refunding Bonds,
Series 1996 A (AMBAC Insured),
3.40%, 10/7/99 1,100
3,400 Moorpark Unified School
District 1999-2000 TRAN,
3.50%, 6/30/00 3,400
6,000 Moreno Valley Unified School
District 1999-2000 TRAN,
4.00%, 6/30/00 6,026
2,000 Mountain View Los Altos Unified High
School District 1999 TRAN,
3.50%, 6/30/00 2,006
2,000 Mountain View Unified School
District 1999 TRAN,
3.50%, 6/30/00 2,006
5,300 Orange County Apartment Development
Housing Revenue FRN,
Series 1985 T, Monarch Laguna Association
(Bank of America Corp. LOC),
3.25%, 10/7/99 5,300
13,195 Orange County Apartment Development
Housing Revenue FRN,
Series 1992 B, Aliso Creek Project
(Wells Fargo & Co. LOC),
3.40%, 10/7/99 13,195
4,000 Orange County Apartment Development
Housing Revenue FRN,
Wood Canyon Villas Issue B of 1991
(Bank of America Corp. LOC),
3.55%, 10/7/99 4,000
4,000 Orange County Sanitation
Districts 1-3, 5-7 & 11
COP, Series 1992 (AMBAC Insured),
3.40%, 10/7/99 4,000
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
CALIFORNIA MUNICIPAL MONEY MARKET FUND (CONTINUED)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
99.3% (CONT'D.)
CALIFORNIA - 92.8% (CONT'D.)
$1,000 Orange County Sanitation
Districts 1-3, 5-7 & 11 Bond,
Series 1993 A (AMBAC Insured),
3.50%, 10/1/99 $1,000
3,600 Perris Unified High School
District 1999-2000 TRAN,
3.50%, 6/30/00 3,600
1,080 Placer County Office of Education TRAN,
4.125%, 10/1/00 1,085
4,390 Regents of the University of California
Refunding Revenue Bonds,
Series C, ML/SG Muni Trust, SG-24,
3.52%, 10/7/99 4,390
1,041 Riverside County Multifamily Housing
Revenue FRN, Series 1992A, Ambergate
Apartments (Union Bank of California
LOC), 3.65%, 10/7/99 1,041
1,800 Riverside County Public Facilities Project
COP, Series 1985 (National Westminster
Bank PLC LOC),
3.25%, 10/7/99 1,800
6,100 Riverside County School Finance
Authority RAN, Series B,
3.45%, 10/1/99 6,100
2,400 Rocklin Unified School District TRAN,
4.125%, 10/1/00 2,411
4,000 Sacramento City Finance Authority Lease
Revenue Refunding Bond,
Series 1997 SAK 18 (AMBAC Insured),
3.95%, 10/7/99 4,000
3,100 Sacramento-Yolo Port District VRDN,
Series 1997 A (AMT), California Free Trade
Zone Project (Wells Fargo & Co. LOC),
3.55%, 10/7/99 3,100
8,000 San Bernardino County 1999 TRAN,
3.75%, 9/29/00 8,018
7,005 San Diego County 1999 TRAN,
5.00%, 9/29/00 7,114
10,000 San Diego HDA Multifamily
Housing Revenue Bond, La Cima
Apartments (FHLMC Gtd.),
3.40%, 10/7/99 10,000
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CALIFORNIA - 92.8% (CONT'D.)
$ 5,000 San Diego Unified School
District 1999-2000 TRAN, 4.25%, 9/29/00 $ 5,043
3,955 San Diego Public Facilities Financing
Authority Bond, ML/SG Muni Trust SG-14
(AMBAC Insured),
3.52%, 10/7/99 3,955
6,000 San Francisco City and County Airport
Commission International Airport Revenue
FRN (AMT), Susquehanna Structured
Projects SSP-4 (AMBAC Insured),
3.63%, 10/7/99 6,000
12,500 San Francisco City and County
Redevelopment Agency (AMT),
1999C Multifamily Housing Bond,
3rd & Mission (HypoVereinsbank LOC),
3.45%, 10/7/99 12,500
4,975 San Francisco City and County Variable
Rate Certificates, Series 1996-AA6
(FGIC Insured), 3.82%, 10/7/99 4,975
1,800 San Leandro Multifamily
Revenue Bonds, Series 1989 A, Parkside
Commons Apartment (FNMA Gtd.),
3.25%, 10/7/99 1,800
645 Santa Clara County Housing Authority
Multifamily VRDN, Series A (AMT),
Avenida Espana Gardens
(Union Bank of California LOC),
3.75%, 10/7/99 645
1,200 Tustin Limited Tax G.O. Improvement
Bond, Series A, Reassessment District 95-2
(KBC Bank LOC),
3.50%, 10/1/99 1,200
----------
419,473
----------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semiannual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
PUERTO RICO-6.5%
Government Development Bank for Puerto
Rico Tax-Exempt CP,
$10,000 3.25%, 1/26/00 $ 10,000
11,438 3.40%, 2/16/00 11,438
3,000 3.40%, 2/24/00 3,000
4,800 Puerto Rico Commonwealth Highway
and Transportation Authority
Transportation Revenue Bond, Series A
(AMBAC Insured), 3.45%, 10/7/99 4,800
----------
29,238
----------
Total Municipal Investments
(cost $448,711 ) 448,711
----------
NUMBER
OF SHARES
(000S)
- -----------
OTHER - 0.2%
56 Federated Tax-Exempt
Money Market Fund No. 80 56
993 Provident Institutional California
Money Fund No. 52 993
----------
Total Other (cost $1,049) 1,049
----------
Total Investments - 99.5%
(cost $449,760) 449,760
Other Assets less Liabilities - 0.5% 2,054
----------
NET ASSETS - 100.0% $451,814
==========
See Notes to the Financial Statements.
<PAGE>
NOTES TO THE
FINANCIAL STATEMENTS
SEPTEMBER 30, 1999
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. 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. Securities which
are traded on a recognized U.S. or foreign securities exchange are
generally valued at the last quoted sales price on the securities exchange
on which the securities are primarily traded. If securities traded on a
foreign securities exchange are not traded on a valuation date, they will
be valued at the most recent quoted sales price. Securities that are traded
in the U.S. over-the-counter markets, absent a last quoted sales price, are
valued at the last quoted bid price. Securities which are traded in the
foreign over-the-counter markets are generally valued at the last sales
price. Insurance funding agreements 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 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. Dividend
income is recognized on the ex-dividend date and interest income is
recognized on an accrual basis and includes amortization of discounts and
premiums.
D 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.
E 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.
During the year ended September 30, 1999, all of the dividends derived
from net investment income paid by each of the Municipal Money Market and
California Municipal Money Market Funds were "exempt-interest dividends,"
excludable from gross income for Federal income tax purposes. Further, all
such dividends paid by the California Municipal Money Market were
"California exempt-interest dividends," exempt from California state
personal income tax.
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NORTHERN FUNDS Semiannual Report
F 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 and to distribute
substantially all of their taxable income to their shareholders.
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, 1999, 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%
- ------------------------------------------------------------------------------
Until October 1, 1999, the Funds had 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, 1999,
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.
There were no outstanding borrowings as of September 30, 1999.
5. SUBSEQUENT EVENTS
On October 1, 1999, Northern Trust and First Data Investor Services Group, Inc.
became the Funds' co-administrators. Prior to October 1, 1999, Sunstone
Financial Group, Inc. served as the Funds' administrator.
On October 1, 1999, Northern Funds Distributors, LLC, the Funds' distributor,
was acquired by Provident Distributors, Inc. an independently owned and operated
broker/dealer based in West Conshohocken, Pennsylvania.
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(BACK COVER)
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.
Northern Funds Distributors, LLC,
Distributor
NF4110999
(logo)
NORTHERN FUNDS
P.O. Box 75986
Chicago, IL 60690-6319
(800) 595-9111
