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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
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ANNUAL REPORT
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--------------
March 31, 2000
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TABLE OF CONTENTS
PAGE
Abbreviations and Other Information.........................................2
Portfolio Management Commentary.............................................3
Money Market Funds
Statements of Assets and Liabilities.....................................6
Statements of Operations.................................................7
Statements of Changes in Net Assets......................................8
Financial Highlights....................................................10
Schedules of Investments
Money Market Fund....................................................15
U.S. Government Money Market Fund....................................20
U.S. Government Select Money Market Fund.............................21
Municipal Money Market Fund..........................................22
California Municipal Money Market Fund...............................40
Notes to the Financial Statements..........................................44
Report of Independent Public Accountants...................................46
Voting Results of Special Meeting of Shareholders..........................47
<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 putable 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
ACA American Capital Access
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
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
GIC Guaranteed Investment Contract
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 Lynch Societe Generale
MTN Medium Term Notes
P-FLOATS Puttable Floating Rate Securities
PCR Pollution Control Revenue
PFA Public Finance Authority
PSF Permanent School Fund
RAN Revenue Anticipation Notes
REMIC Real Estate Mortgage
Investment Conduit
ROC Reset Option Certificates
SFM Single Family Mortgage
SLMA SLM Holding Corp.
SOC GEN Societe Generale
TAN Tax Anticipation Notes
TOB Tender Option Bond
TRAN Tax and Revenue
Anticipation Notes
TRB Tax Revenue Bonds
VRDB Variable Rate Demand Bond
VRDN Variable Rate Demand Notes
VRN Variable Rate Notes
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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>
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PORTFOLIO MANAGEMENT COMMENTARY
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MONEY MARKET FUND
The Federal Reserve and its expected actions had the greatest impact on the Fund
during the fiscal year. Our efforts to monitor economic results and translate
them into possible Fed action were the driving forces in how the Fund was
managed.
Our key strategy during the year was to maintain a barbell maturity structure,
whereby a portion of the Fund was invested in very short-term money market
securities for liquidity and another portion was invested in slightly longer-
term money market securities for yield advantages. Overall, we kept the Fund's
average maturity relatively short, extending only when there was a backup in
interest rates. The Fund's composition remained relatively unchanged, with the
highest percentage of assets invested in tier-one commercial paper, where yields
were the most attractive.
Going forward, we expect to maintain the Fund's current structure, given our
stringent credit quality guidelines. We will continue to emphasize shorter
investments, though, to maintain liquidity in a rising interest rate
environment. We expect the Fed to continue raising rates, with perhaps a 25-
basis point increase (0.25 of a percentage point) at each of its next three
meetings in May, June and August.
Mary Ann Flynn
Portfolio Manager
U.S. GOVERNMENT MONEY MARKET FUND
AND
U.S. GOVERNMENT SELECT MONEY MARKET FUND
The two dominant issues during the fiscal year were the strength of the domestic
economy and the potential for Y2K-related computer problems. Early in the
period, market participants expected monetary policy to remain neutral, despite
above-trend growth due to benign inflation data, productivity gains, and the
aftermath of the fall 1998 market turbulence. Nevertheless, the rapid rebound in
the global economy and the tightening domestic labor market prompted the Federal
Reserve to implement a tightening policy in June 1999. By March 31, 2000, the
Fed had raised the federal funds rate five times, for a total of 125 basis
points, or 1.25 percentage points, with more tightening expected.
While Y2K turned out to be a nonevent, it had a profound impact during 1999, as
concerns of systemic risk caused distortions in the money market yield curve.
Expectations for extremely high funding rates at year end elicited a sharp rise
in rates for investments maturing beyond the end of the year. Money managers had
to balance this attractive Y2K premium against concerns about year-end
liquidity. After the smooth transition to the new year, market focus reverted to
the Fed's efforts to engineer a "soft-landing" of the domestic economy.
In anticipation of the rising-rate environment, we purchased variable-rate
securities early in the year. With approximately 25 percent of each fund
invested in these securities, both funds were well positioned to benefit from
the year's interest rate hikes, and they consequently outperformed their peer
groups. During the next several months, the Fed is widely expected to raise
rates by another 50 or 75 basis points (0.5 or 0.75 of a percentage point). We
will look for opportunities to extend the funds' duration as the money market
yield curve steepens.
Brian Andersen
Portfolio Manager
<PAGE>
NORTHERN FUNDS Annual Report
MUNICIPAL MONEY MARKET FUND
Several factors influenced the short-term tax-exempt market and the Fund during
the past fiscal year. The supply of municipal paper was scarce for most of the
year, which primarily was due to the strong economy. Government coffers were
flush with tax receipts, which diminished borrowing needs. In addition, rising
interest rates also limited government borrowing.
The most significant factor we faced in managing the Fund was the increased
volatility of cash flows in a rapidly changing interest rate environment. The
cash flows into and out of the Fund were more pronounced than they had been in
the past. To try to insulate the Fund from this volatility, we employed a
barbell strategy of investing in shorter- and longer-maturity money market
securities. This allowed us to meet the Fund's liquidity needs while still
providing a competitive return.
For the year, the Fund slightly outperformed its industry average. This happened
despite the underperformance in the second and third quarters of the fiscal
year, when the Fund's average maturity was longer-than-average in a rising
interest rate environment. We began to restructure the Fund late in the third
quarter, which allowed us to take advantage of technical factors that emerged
throughout the rest of the year.
We expect the Federal Reserve to continue to raise interest rates at least twice
in the next six months. The Fund's average maturity remains slightly longer than
the industry average, but we feel we have enough flexibility in the composition
of the portfolio to take advantage of the rising interest rate environment.
Brad Snyder
Portfolio Manager
CALIFORNIA MUNICIPAL
MONEY MARKET FUND
The supply of California short-term tax-exempt bonds was scarce for most of the
fiscal year. Because of the strong economy, state and local government coffers
were flush with tax receipts, which diminished borrowing needs. In addition, the
rising interest rate environment also curbed government borrowing.
Another key factor that influenced the Fund was the asset growth of the Fund,
coupled with an increase in cash-flow volatility. This forced us to manage and
structure the portfolio slightly different than in the past. For example, cash
inflows at times overwhelmed our efforts to maintain a barbell maturity
structure of short- and long-term securities.
The Fund slightly outperformed its industry average for the year, despite a
longer average maturity in the second and third quarters of the fiscal year,
when interest rates began to rise. Late in the third quarter, we began to
restructure the portfolio to take advantage of technical factors that occurred
at year-end and in the first quarter of the calendar year.
During the next six months, we anticipate the Federal Reserve will raise
interest rates at least two more times. The Fund's average maturity is longer
than the industry average, mostly due to cash outflows from the fiscal fourth
quarter, which has reduced the Fund's liquidity and increased the influence of
our longer-maturity securities. We will continue to adjust the portfolio to take
advantage of the rising interest rate environment.
Brad Snyder
Portfolio Manager
<PAGE>
<TABLE>
<CAPTION>
MONEY MARKET FUNDS YIELD<F1> COMPARISONS
AVERAGE MONTHLY RATES
IBC'S
MONEY FUND
AVERAGE/TM/
CALIFORNIA
STATE-
U.S. GOV'T CALIFORNIA SPECIFIC
IBC'S U.S. GOV'T. IBC'S SELECT IBC'S MUNICIPAL IBC'S MUNICIPAL STOCK
MONEY MONEY FUND MONEY MONEY FUND MONEY MONEY FUND MONEY MONEY FUND MONEY BROKER &
MARKET AVERAGE/TM/ MARET AVERAGE/TM/ MARKET AVERAGE/TM/ MARKET AVERAGE/TM/ MARKET GENERAL
FUND ALL TAXABLE FUND GOVERNMENT FUND GOVERNMENT FUND ALL TAX-FREE FUND PURPOSE
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000
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March 5.41% 5.32% 5.44% 5.27% 5.36% 5.27% 3.35% 3.11% 2.76% 2.63%
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February 5.35% 5.22% 5.28% 5.01% 5.21% 5.01% 3.19% 2.93% 2.40% 2.20%
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January 4.78% 5.11% 5.09% 4.81% 5.03% 4.81% 3.05% 2.86% 2.51% 2.45%
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1999
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December 5.36% 5.06% 5.03% 4.89% 4.99% 4.89% 3.31% 3.22% 2.99% 2.93%
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November 5.08% 4.92% 4.94% 4.80% 4.92% 4.80% 3.07% 3.01% 2.85% 2.77%
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October 4.95% 4.76% 4.84% 4.64% 4.77% 4.64% 2.90% 2.81% 2.59% 2.48%
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September 4.88% 4.69% 4.76% 4.49% 4.67% 4.49% 2.90% 2.80% 2.55% 2.47%
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August 4.71% 4.55% 4.58% 4.35% 4.53% 4.35% 2.69% 2.59% 2.37% 2.38%
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July 4.61% 4.45% 4.51% 4.25% 4.46% 4.25% 2.63% 2.50% 2.31% 2.29%
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June 4.48% 4.31% 4.38% 4.12% 4.30% 4.12% 2.78% 2.69% 2.60% 2.57%
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May 4.47% 4.29% 4.37% 4.12% 4.29% 4.12% 2.94% 2.83% 2.80% 2.71%
-----------------------------------------------------------------------------------------------------------------------------------
April 4.48% 4.32% 4.39% 4.14% 4.39% 4.14% 2.69% 2.58% 2.48% 2.46%
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<F1> Yield calculations reflect fee waivers in effect, represent past
performance and will fluctuate. In the absence of fee waivers, performance
would be lower.
We compare our Funds to the IBC's Money Fund Averages/TM which are composites
of professionally managed money market investments with similar investment
objectives.
</TABLE>
<TABLE>
<CAPTION>
MONEY MARKET FUNDS 7-DAY YIELDS<F2>
PERIOD ENDED APRIL 30, 2000
U.S. GOVERNMENT U.S. GOVERNMENT SELECT MUNICIPAL CALIFORNIA MUNICIPAL
MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Current 5.58% 5.49% 5.50% 4.08% 3.73%
--------------------------------------------------------------------------------------------------------------------------------
Effective 5.74% 5.64% 5.65% 4.16% 3.80%
--------------------------------------------------------------------------------------------------------------------------------
(2) Yield calculations reflect fee waivers in effect, represent past
performance and will fluctuate. In the absence of fee waivers, current 7-
day yields for the Money Market, U.S. Government Money Market, U.S.
Government Select Money Market, Municipal Money Market and California
Municipal Money Market Funds would have been 5.32%, 5.34%, 5.25%, 3.19% and
2.59%, respectively. An investment in any one of the money market funds is
neither insured nor guaranteed by the FDIC or any other governmental
agency. Although the Funds seek to maintain a value of $1.00 per share, it
is possible to lose money.
</TABLE>
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES MARCH 31, 2000
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 $5,267,662 $372,605 $704,277 $2,621,000 $405,000
Repurchase agreements, at cost which approximates market value 954,291 163,617 - - -
Cash - 1 12 - 272
Income receivable 27,895 1,323 1,351 20,969 4,409
Receivable for fund shares sold 41,811 6,220 - 38,727 592
Receivable for securities sold - - - 2,000 1,100
Receivable from Adviser 175 18 20 75 13
Prepaid and other assets 33 7 3 20 6
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Total Assets 6,291,867 543,791 705,663 2,682,791 411,392
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LIABILITIES:
Cash overdraft 2 - - 2,120 -
Dividends payable 28,249 2,304 3,257 7,399 1,006
Payable for fund shares redeemed 24,984 3,392 12,516 4,500 5,651
Payable for securities purchased - - - 20 -
Accrued investment advisory fees 476 38 54 200 32
Accrued administration fees 179 14 20 75 12
Accrued transfer agent fees 119 10 13 50 8
Accrued custody and accounting fees 19 7 7 43 6
Accrued registration fees and other liabilities 608 76 54 288 60
--------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 54,636 5,841 15,921 14,695 6,775
--------------------------------------------------------------------------------------------------------------------------------
Net Assets $6,237,231 $537,950 $689,742 $2,668,096 $404,617
================================================================================================================================
ANALYSIS OF NET ASSETS:
Capital stock $6,237,090 $537,910 $689,715 $2,667,780 $404,570
Undistributed net investment income 160 33 21 207 20
Undistributed net realized gains (losses) (19) 7 6 109 27
--------------------------------------------------------------------------------------------------------------------------------
Net Assets $6,237,231 $537,950 $689,742 $2,668,096 $404,617
=================================================================================================================================
SHARES OUTSTANDING ($.0001 PAR VALUE, UNLIMITED AUTHORIZATION) 6,237,210 537,942 689,735 2,667,916 404,590
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 Annual Report
STATEMENTS OF OPERATIONS YEAR ENDED MARCH 31, 2000
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 $294,131 $24,593 $30,244 $82,301 $13,267
----------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 32,006 2,748 3,353 14,062 2,523
Administration fees 8,002 687 838 3,516 631
Transfer agent fees 5,335 458 559 2,344 420
Custody and accounting fees 1,117 129 141 506 125
Registration fees 768 99 91 347 92
Professional fees 128 22 23 61 23
Trustees' fees and expenses 74 10 9 37 9
Servicing fee - 53 - _ _
Other 292 22 20 133 18
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Total Expenses 47,722 4,228 5,034 21,006 3,841
Less voluntary waivers of:
Investment advisory fees (10,669) (916) (1,118) (4,687) (841)
Administration fees (2,577) (227) (195) (1,149) (199)
Less reimbursement of expenses by Adviser (5,136) (566) (647) (2,279) (488)
----------------------------------------------------------------------------------------------------------------------------
Net Expenses 29,340 2,519 3,074 12,891 2,313
----------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 264,791 22,074 27,170 69,410 10,954
----------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAINS (LOSSES):
Investments (19) - 3 (119) (4)
----------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $264,772 $22,074 $27,173 $69,291 $10,950
============================================================================================================================
</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
-------------- -----------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
MAR. 31, MAR. 31, MAR. 31, MAR. 31,
AMOUNTS IN THOUSANDS 2000 1999 2000 1999
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $264,791 $188,380 $22,074 $20,858
Net realized gains (losses) on investments (19) 33 _ 3
-------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting
from Operations 264,772 188,413 22,074 20,861
-------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 23,568,489 14,249,027 2,348,124 2,260,589
Shares from reinvestment of dividends 54,450 31,770 7,464 4,881
Shares redeemed (22,271,787) (12,690,762) (2,287,504) (2,212,649)
-------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting
from Capital Share Transactions 1,351,152 1,590,035 68,084 52,821
-------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID:
From net investment income (264,791) (188,380) (22,074) (20,858)
From net realized gains - - _ _
-------------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (264,791) (188,380) (22,074) (20,858)
TOTAL INCREASE IN NET ASSETS 1,351,133 1,590,068 68,084 52,824
NET ASSETS:
Beginning of year 4,886,098 3,296,030 469,866 417,042
-------------------------------------------------------------------------------------------------------------------------
End of year $6,237,231 $4,886,098 $537,950 $469,866
=========================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $160 $124 $33 $33
=========================================================================================================================
</TABLE>
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
<TABLE>
<CAPTION>
U.S. GOVERNMENT CALIFORNIA
SELECT MUNICIPAL MUNICIPAL
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
---------------- ------------ --------------
Year Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31,
Amounts in thousands 2000 1999 2000 1999 2000 1999
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $27,170 $17,144 $69,410 $59,255 $10,954 $7,325
Net realized gains (losses)
on investments 3 3 (119) 228 (4) 32
----------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets
Resulting from Operations 27,173 17,147 69,291 59,483 10,950 7,357
----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 3,693,357 1,670,254 9,836,179 9,069,717 2,140,034 1,609,467
Shares from reinvestment of dividends 8,643 5,089 11,271 9,443 3,353 1,945
Shares redeemed (3,428,788) (1,565,244) (9,563,265) (8,509,555) (2,101,816) (1,473,237)
----------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets
Resulting from Capital Share
Transactions 273,212 110,099 284,185 569,605 41,571 138,175
----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID:
From net investment income (27,170) (17,144) (69,410) (59,255) (10,954) (7,325)
From net realized gains - - - (146) _ _
----------------------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (27,170) (17,144) (69,410) (59,401) (10,954) (7,325)
----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 273,215 110,102 284,066 569,687 41,567 138,207
NET ASSETS:
Beginning of year 416,527 306,425 2,384,030 1,814,343 363,050 224,843
----------------------------------------------------------------------------------------------------------------------------------
End of year $689,742 $416,527 $2,668,096 $2,384,030 $404,617 $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
---------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
2000 1999 1998 1997 1996
-----------------------------------------------------------------------------------------------------------------------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.05 0.05 0.05 0.05 0.05
-----------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.05) (0.05) (0.05) (0.05) (0.05)
-----------------------------------------------------------------------------------------------------------------------
Total distributions paid (0.05) (0.05) (0.05) (0.05) (0.05)
-----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $1.00 $1.00 $1.00 $1.00 $1.00
=======================================================================================================================
TOTAL RETURN<F1> 5.06% 5.04% 5.31% 5.05% 5.57%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of year $6,237,231 $4,886,098 $3,296,030 $1,607,187 $1,061,813
Ratio to average net assets of <F2>:
Expenses, net of waivers and
reimbursements 0.55% 0.55% 0.55% 0.55% 0.49%
Expenses, before waivers and
reimbursements 0.89% 0.89% 0.90% 0.90% 0.91%
Net investment income, net of
waivers and reimbursements 4.96% 4.91% 5.19% 4.94% 5.42%
Net investment income, before
waivers and reimbursements 4.62% 4.57% 4.84% 4.59% 5.00%
---------------------------------------------------------------------------------------------------------------------
<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 periods less than a full year.
</TABLE>
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
<TABLE>
<CAPTION>
U.S. GOVERNMENT
MONEY MARKET
FUND
--------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
2000 1999 1998 1997 1996
---------------------------------------------------------------------------------------------------------------------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.05 0.05 0.05 0.05 0.05
---------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.05) (0.05) (0.05) (0.05) (0.05)
---------------------------------------------------------------------------------------------------------------------
Total distributions paid (0.05) (0.05) (0.05) (0.05) (0.05)
---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $1.00 $1.00 $1.00 $1.00 $1.00
=====================================================================================================================
TOTAL RETURN<F1> 4.92% 4.94% 5.22% 4.93% 5.46%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of year $537,950 $469,866 $417,042 $314,259 $207,105
Ratio to average net assets of <F2>:
Expenses, net of waivers and
reimbursements 0.55% 0.55% 0.55% 0.55% 0.49%
Expenses, before waivers and
reimbursements 0.92% 0.91% 0.93% 0.96% 0.94%
Net investment income, net of
waivers and reimbursements 4.82% 4.82% 5.10% 4.82% 5.33%
Net investment income, before
waivers and reimbursements 4.45% 4.46% 4.72% 4.41% 4.88%
---------------------------------------------------------------------------------------------------------------------
<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 periods less than a full year.
</TABLE>
See Notes to the Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS (Continued)
MONEY MARKET FUNDS
<TABLE>
<CAPTION>
U.S. GOVERNMENT
SELECT
MONEY MARKET
FUND
------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
2000 1999 1998 1997 1996
---------------------------------------------------------------------------------------------------------------------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.05 0.05 0.05 0.05 0.05
---------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.05) (0.05) (0.05) (0.05) (0.05)
---------------------------------------------------------------------------------------------------------------------
Total distributions paid (0.05) (0.05) (0.05) (0.05) (0.05)
---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $1.00 $1.00 $1.00 $1.00 $1.00
=====================================================================================================================
TOTAL RETURN<F1> 4.86% 4.87% 5.24% 5.07% 5.55%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of year $689,742 $416,527 $306,425 $168,128 $85,400
Ratio to average net assets of <F2>:
Expenses, net of waivers and
reimbursements 0.55% 0.55% 0.46% 0.40% 0.33%
Expenses, before waivers and
reimbursements 0.90% 0.91% 0.93% 0.97% 1.00%
Net investment income, net of
waivers and reimbursements 4.86% 4.73% 5.13% 4.95% 5.43%
Net investment income, before
waivers and reimbursements 4.51% 4.37% 4.66% 4.38% 4.76%
---------------------------------------------------------------------------------------------------------------------
<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 periods less than a full year.
</TABLE>
See Notes to the Financial Statements.
<TABLE>
<CAPTION>
MUNICIPAL
MONEY MARKET
FUND
-------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
2000 1999 1998 1997 1996
-------------------------------------------------------------------------------------------------------------------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.03 0.03 0.03 0.03 0.03
-------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.03) (0.03) (0.03) (0.03) (0.03)
-------------------------------------------------------------------------------------------------------------------
Total distributions paid (0.03) (0.03) (0.03) (0.03) (0.03)
-------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $1.00 $1.00 $1.00 $1.00 $1.00
===================================================================================================================
TOTAL RETURN<F1> 3.01% 2.98% 3.27% 3.14% 3.54%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of year $2,668,096 $2,384,030 $1,814,343 $1,420,041 $1,102,789
Ratio to average net assets of <F2>:
Expenses, net of waivers and
reimbursements 0.55% 0.55% 0.55% 0.55% 0.49%
Expenses, before waivers and
reimbursements 0.90% 0.89% 0.89% 0.90% 0.91%
Net investment income, net of
waivers and reimbursements 2.96% 2.90% 3.20% 3.08% 3.46%
Net investment income, before
waivers and reimbursements 2.61% 2.56% 2.86% 2.73% 3.04%
-------------------------------------------------------------------------------------------------------------------
<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 periods less than a full year.
</TABLE>
See Notes to the Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS (Continued)
MONEY MARKET FUNDS
<TABLE>
<CAPTION>
CALIFORNIA
MUNICIPAL
MONEY MARKET
FUND
-------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
2000 1999 1998 1997 1996
--------------------------------------------------------------------------------------------------------------------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.03 0.03 0.03 0.03 0.04
--------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.03) (0.03) (0.03) (0.03) (0.04)
--------------------------------------------------------------------------------------------------------------------
Total distributions paid (0.03) (0.03) (0.03)(0.03) (0.04)
--------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $1.00 $1.00 $1.00 $1.00 $1.00
====================================================================================================================
TOTAL RETURN<F1> 2.64% 2.75% 3.20% 3.19% 3.63%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of year $404,617 $363,050 $224,843 $200,989 $165,087
Ratio to average net assets of <F2>:
Expenses, net of waivers and
reimbursements 0.55% 0.55% 0.49% 0.45% 0.39%
Expenses, before waivers and
reimbursements 0.91% 0.91% 0.94% 0.94% 0.94%
Net investment income, net of
waivers and reimbursements 2.61% 2.68% 3.14% 3.13% 3.55%
Net investment income, before
waivers and reimbursements 2.25% 2.32% 2.69% 2.64% 3.00%
--------------------------------------------------------------------------------------------------------------------
<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 periods less than a full year.
</TABLE>
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS March 31, 2000
MONEY MARKET FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT - 9.3%
DOMESTIC CERTIFICATES OF DEPOSIT - 2.6%
$12,500 Michigan National Bank,
5.13%, 4/25/00 $12,500
National Westminster Bank
50,000 5.67%, 7/3/00 49,995
50,000 6.095%, 11/24/00 49,978
50,000 Regions Bank,
6.23%, 11/6/00 49,977
---------
162,450
---------
FOREIGN CERTIFICATES OF DEPOSIT - 6.7%
89,000 Banque Nationale de Paris,
Chicago Branch, 5.07%, 4/17/00 88,998
95,000 Deutsche Bank, London Branch,
6.09%, 6/13/00 95,001
37,500 Deutsche Bank, New York Branch,
5.20%, 5/10/00 37,498
15,000 National Bank of Canada,
5.77%, 7/31/00 14,998
Societe Generale, New York Branch
35,000 5.20%, 5/8/00 34,999
145,000 6.89%, 3/29/01 144,959
---------
416,453
---------
Total Certificates of Deposit
(cost $578,903) 578,903
---------
COMMERCIAL PAPER - 49.0%
ASSET-BACKED SECURITIES - 2.6%
Moriarty Ltd.
50,000 5.89%, 4/27/00 49,787
72,500 5.91%, 5/15/00 71,976
Victory Receivables Corp.
16,604 5.90%, 4/7/00 16,588
21,481 5.95%, 4/28/00 21,385
---------
159,736
---------
COLLATERIZED LOAN OBLIGATIONS - 4.2%
Moat Funding LLC
97,500 5.90%, 4/19/00 97,212
74,500 5.90%, 4/27/00 74,183
Principal
Amount Value
(000s) (000s)
---------------------------------------------------------------------------
R.O.S.E., Inc.
$35,065 5.89%, 4/28/00 $34,910
10,000 5.93%, 4/28/00 9,955
Stellar Funding, Inc.
4,432 5.90%, 4/25/00 4,415
6,341 6.10%, 4/26/00 6,314
38,987 6.10%, 4/28/00 38,809
---------
265,798
---------
COMMUNICATIONS - 2.8%
GTE Corp.
16,500 5.92%, 4/3/00 16,494
40,000 6.10%, 4/3/00 39,986
23,000 5.92%, 4/4/00 22,989
8,000 5.92%, 4/5/00 7,995
15,000 6.17%, 4/7/00 14,985
25,000 5.90%, 4/10/00 24,963
50,000 5.90%, 4/11/00 49,918
---------
177,330
---------
COMPUTER & INDUSTRIAL MACHINES
& EQUIPMENT - 0.4%
25,000 Invensys PLC,
5.91%, 5/9/00 24,844
---------
DOMESTIC DEPOSITORY INSTITUTIONS - 1.6%
Marshall & Ilsley Corp.
19,000 5.95%, 4/27/00 18,918
45,000 6.02%, 5/2/00 44,767
23,000 6.05%, 5/9/00 22,853
15,000 Morgan (J.P.) & Co.,
5.88%, 5/1/00 14,927
---------
101,465
---------
ELECTRONICS & OTHER ELECTRONIC
COMPONENTS - 0.0%
500 General Electric Capital Corp.,
5.60%, 4/14/00 499
---------
ELECTRIC SERVICES - 0.3%
20,000 Centerior Fuel Corp.,
6.10%, 4/3/00 19,994
---------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS March 31, 2000
MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
COMMERCIAL PAPER - 49.0%
(CONT'D.)
General Merchandise Store - 1.0%
Sears Roebuck Acceptance Corp.
$ 30,000 6.05%, 4/17/00 $29,919
30,000 6.15%, 4/21/00 29,897
---------
59,816
---------
INSURANCE - 1.5%
Aetna Service Co.
12,500 5.85%, 4/12/00 12,478
5,000 5.92%, 4/28/00 4,978
17,500 6.14%, 4/28/00 17,419
20,000 6.08%, 5/31/00 19,797
19,218 AON Corp., 6.00%, 6/7/00 19,003
Torchmark, Inc.
9,978 5.95%, 4/14/00 9,957
10,000 6.00%, 6/6/00 9,890
---------
93,522
---------
MANUFACTURING INDUSTRY - 0.7%
Hanson Finance PLC
20,000 5.95%, 5/8/00 19,878
25,000 5.95%, 5/10/00 24,839
---------
44,717
---------
MULTI-SELLER CONDUITS - 18.4%
Amsterdam Funding
21,500 5.85%, 4/11/00 21,465
25,000 5.85%, 4/19/00 24,927
6,000 6.00%, 6/1/00 5,939
Barton Capital Corp.
30,000 5.85%, 4/7/00 29,971
25,000 5.90%, 4/7/00 24,975
84,000 6.10%, 4/12/00 83,844
4,725 6.15%, 4/20/00 4,710
Compass Securitization
15,400 5.95%, 4/11/00 15,374
22,500 5.95%, 4/12/00 22,459
9,000 6.00%, 4/17/00 8,976
Concord Minutemen Capital Co.
125,000 5.88%, 4/4/00 124,939
15,000 5.90%, 4/10/00 14,978
10,000 6.10%, 5/18/00 9,920
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
$25,000 Corporate Receivables Corp.,
5.85%, 4/17/00 $24,935
30,000 Edison Asset Securitization,
5.88%, 4/28/00 29,868
Eiffel Funding LLC
15,000 6.10%, 4/13/00 14,969
30,000 6.05%, 4/18/00 29,914
15,000 6.10%, 5/3/00 14,919
15,000 5.95%, 5/18/00 14,883
15,000 5.96%, 5/25/00 14,866
12,500 5.97%, 5/26/00 12,386
Giro Multi Funding Corp.
54,500 5.85%, 4/13/00 54,395
12,837 6.10%, 4/28/00 12,778
International Securitization Corp.
24,300 5.97%, 4/13/00 24,252
25,000 6.10%, 4/19/00 24,924
50,000 6.10%, 4/20/00 49,839
KBC Commercial Paper Trust
14,200 5.90%, 4/4/00 14,193
14,850 6.00%, 5/15/00 14,741
Lexington Parker Capital
4,960 5.90%, 4/17/00 4,947
50,000 5.85%, 4/19/00 49,852
34,617 5.90%, 4/19/00 34,514
25,000 5.90%, 4/24/00 24,906
48,800 5.95%, 6/5/00 48,276
15,000 Mont Blanc Capital Corp.,
5.85%, 4/17/00 14,961
10,000 Neptune Funding Corp.,
5.90%, 4/3/00 9,997
Ness LLC
20,000 5.98%, 5/10/00 19,870
20,000 5.97%, 5/11/00 19,867
Pooled Account Receivables Corp.
10,000 6.17%, 4/3/00 9,997
25,000 6.15%, 4/7/00 24,974
29,858 Receivables Capital Corp.,
6.10%, 4/20/00 29,762
10,000 Superior Funding Capital Corp.,
5.95%, 5/12/00 9,932
Thames Asset Global Securization
No. 1, Inc.
44,000 5.96%, 4/6/00 43,964
5,000 6.00%, 4/17/00 4,987
Variable Funding Capital Corp.
35,000 5.85%, 4/20/00 34,892
6,200 5.91%, 5/8/00 6,162
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
$10,000 Windmill Funding,
5.85%, 4/17/00 $9,975
---------
1,146,174
---------
NON-DEPOSITORY BUSINESS CREDIT
INSTITUTIONS - 2.0%
Finova Capital Corp.
10,000 5.86%, 4/10/00 9,985
28,125 5.90%, 4/14/00 28,065
35,000 5.95%, 5/12/00 34,763
PHH Corp.
17,500 6.05%, 4/20/00 17,444
32,500 6.20%, 5/3/00 32,321
---------
122,578
---------
NON-DEPOSITORY PERSONAL CREDIT
INSTITUTIONS - 2.4%
80,000 Countrywide Home Loans,
6.15%, 4/7/00 79,918
Heller Financial, Inc., MTN
22,000 5.90%, 4/25/00 21,914
8,000 6.15%, 4/26/00 7,966
30,000 6.05%, 6/7/00 29,662
10,000 Household Finance Co.,
5.97%, 4/27/00 9,957
---------
149,417
---------
OTHER RECEIVABLES - 0.9%
45,000 Dakota Certificates Program,
5.85%, 4/12/00 44,919
12,359 Newcourt Equipment Trust,
5.971%, 5/17/00 12,358
---------
57,277
---------
SECURITIES ARBITRAGE - 7.5%
ABC Funding
10,000 5.85%, 4/10/00 9,985
12,500 5.93%, 5/22/00 12,395
10,500 Check Point Charlie, Inc.,
5.95%, 5/1/00 10,448
Conduit Asset Backed Securities LLC
$10,000 6.05%, 4/17/00 9,973
9,950 5.97%, 5/25/00 9,861
15,500 6.09%, 8/18/00 15,135
6,000 6.15%, 9/8/00 5,836
Crown Point Capital Co.
$15,250 6.06%, 4/6/00 $15,237
45,000 6.125%, 6/15/00 44,426
Grand Funding Corp.
11,050 5.90%, 4/5/00 11,043
16,000 5.85%, 4/14/00 15,966
12,500 6.00%, 6/8/00 12,358
Grayhawk Funding
10,000 5.90%, 4/17/00 9,974
2,300 5.85%, 4/28/00 2,290
14,500 6.00%, 6/6/00 14,341
19,000 Links Finance Corp. LLC,
5.95%, 5/26/00 18,827
7,000 K2 USA LLC, 6.06%, 9/5/00 6,815
MPF Ltd.
25,655 5.92%, 4/20/00 25,575
51,440 5.90%, 4/25/00 51,238
12,500 6.00%, 6/8/00 12,358
Sigma Finance
45,000 FRN, 6.16%, 5/8/00 45,004
24,700 5.84%, 6/2/00 24,452
25,000 5.84%, 6/5/00 24,736
Trident Capital Finance Corp.,
60,500 5.85%, 4/10/00 60,411
---------
468,684
---------
SINGLE SELLER CONDULTS - 1.4%
Emerald Certificates
25,000 5.90%, 4/14/00 24,947
45,000 6.07%, 4/18/00 44,871
7,000 6.15%, 5/8/00 6,956
8,000 6.14%, 5/9/00 7,948
---------
84,722
---------
TRANSPORTATION EQUIPMENT - 1.3%
Daimler Chrsyler Canada,
24,000 5.98%, 6/1/00 23,757
500 Ford Motor Credit Corp.,
5.60%, 4/14/00 499
18,750 Harley Davidson Funding,
6.05%, 4/12/00 18,715
40,000 Textron Financial Corp.,
5.92%, 5/5/00 39,777
---------
82,748
---------
Total Commercial Paper
(cost $3,059,321) 3,059,321
---------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
CORPORATE NOTES/BONDS - 8.2%
DOMESTIC DEPOSITORY INSTITUTIONS - 2.2%
$57,000 Huntington National Bank Bank Note,
5.35%, 5/31/00 $56,995
11,793 Marshall & Ilsley Bank,
6.07%, 9/28/00 11,789
65,586 Strategic Money Market Trust FRN,
6.28%, 3/29/01 65,586
---------
134,370
---------
INSURANCE - 1.2%
75,000 United Healthcare Corp. FRN,
6.34%, 11/10/00 75,000
---------
SECURITIES ARBITRAGE - 3.2%
Centauri Corp., MTN
25,000 6.10%, 9/7/00 25,000
25,000 6.06%, 9/7/00 25,000
Liberty Lighthouse US Capital, Series A
(National City Bank LOC)
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
K2 (USA) LLC, MTN
1,000 5.59%, 6/5/00 1,000
5,000 5.6%, 6/15/00 5,000
5,000 5.7%, 6/30/00 5,000
30,000 6.9%, 3/30/01 30,000
---------
201,000
---------
SECURITY & COMMODITY BROKER/DEALERS - 1.6%
100,000 Morgan Stanley Dean Witter & Co. FRN,
6.15%, 8/28/00 100,000
---------
Total Corporate Notes/Bonds
(cost $510,370) 510,370
---------
EURODOLLAR TIME DEPOSITS - 10.4%
237,500 Barclays Bank, Global Treasury
Eurodollar Time Deposit
6.344%, 4/3/00 237,500
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
$230,000 Commerzbank, Frankfurt
Eurodollar Time Deposit
6.375%, 4/3/00 $230,000
180,000 Fifth Third Bank, Grand Cayman
Eurodollar Time Deposit
6.313%, 4/3/00 180,000
---------
Total Eurodollar Time Deposits
(cost $647,500) 647,500
---------
MUNICIPAL INVESTMENTS - 7.6%
ADMINISTRATION OF ENVIRONMENT
& HOUSING PROGRAMS - 2.7%
20,000 Alaska Housing Finance Corp.,
5.85%, 4/6/00 19,984
9,245 Texas State Veterans Housing Fund
TOB, Series 1996,
6.019%, 4/1/00 9,245
12,745 Virginia State HDA Multi-family
Housing Bond, Series 1996 CR-10T,
6.019%, 4/1/00 12,745
125,810 Virginia State HDA Bond, Commonwealth
Mortgage, 6.20%, 4/7/00 125,810
---------
167,784
---------
BUSINESS SERVICES - 0.5%
4,350 Courtyards of Mackinaw LLC
Mortgage Revenue Bond,
Series 1999 - H, 6.15%, 4/7/00 4,350
9,500 Elsmere, Kentucky Mubea, Inc.,
6.18%, 4/7/00 9,500
3,800 FBC Chemical Corp. Taxable VRN
(National City Bank LOC)
5.92%, 4/7/00 3,800
5,945 KBL Capital Fund, Inc. Loan
Program Note, Series 1999 - A,
6.22%, 4/7/00 5,945
4,275 Malone College Project VRN,
6.25%, 4/7/00 4,275
5,100 Schreiber Industrial Park-North Co.
Taxable VRDN, 6.18%, 4/7/00 5,100
---------
32,970
---------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
COLLATERALIZED LOAN OBLIGATIONS - 2.0%
Syndicated Loan Funding Trust
Senior Secured Notes, Series 1999-5
$40,000 6.254%, 10/16/00 $ 40,000
35,000 6.154%, 2/15/01 34,983
50,000 6.154%, 3/15/01 50,000
---------
124,983
---------
COMMUNICATIONS - 0.2%
12,201 New Jersey Economic Development
VRN, Series 1999 - B, MSNBC/CNBC
5.636%, 4/1/00 12,201
---------
DOMESTIC DEPOSITORY INSTITUTIONS - 0.2%
7,740 ADE Investments LLC Loan
Program VRN, Series 1998 - A,
6.15%, 4/7/00 7,740
3,050 Vreba-Hoff Funding Inc., Loan
Notes, Series 1998 - A, 5.40%, 4/7/00 3,050
---------
10,790
---------
ELECTRIC SERVICES - 0.1%
9,000 Hydro Quebec, Province of Quebec,
Taxable Series High Yield Debenture,
5.756%, 4/1/00 9,000
---------
EXECUTIVE, REGISTRATIVE & GENERAL - 0.7%
13,000 BRCH Corp. Taxable VRDN, Series 99,
6.20%, 4/7/00 13,000
7,695 Seattle, Washington Ltd. G.O. Bond,
Series 1996 - C, 6.00%, 4/7/00 7,695
13,865 Stanislaus County, California Pension
Obligation, 6.019%, 4/7/00 13,865
7,030 Texas Municipal Power Agency
Series 1997, 6.10%, 5/9/00 7,030
---------
41,590
---------
HEALTH SERVICES - 1.2%
13,500 Flint, Michigan Hospital Building
Authority Loan Program Notes,
Series 1997 - A, Hurley Medical Center
(National City Bank LOC)
5.70%, 4/7/00 13,500
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
$22,500 Healthcare Network Properties LLC
Loan Program VRN, Series 1999A
(National City Bank LOC)
6.15%, 4/7/00 $22,500
14,600 Integris Health, Inc. Taxable
Baptist Medical Plaza Associate Ltd,
6.22%, 4/7/00 14,600
18,600 Physicians Plus Medical Group,
South Carolina, 6.30%, 4/7/00 18,600
3,050 Waukesha, Wisconsin, Health
System, Inc., 6.15%, 4/7/00 3,050
---------
72,250
---------
Total Municipal Investments
(cost $471,568) 471,568
---------
REPURCHASE AGREEMENTS - 15.3%
(Colld. by U.S.Government Securities)
100,000 Lehman Brothers, Inc., dated 3/31/00,
repurchase price $100,050
6.103%, 4/3/00 100,000
Bear Stearns, Inc., dated 3/31/00
375,000 repurchase price $375,194,
6.30%, 4/3/00 375,000
5,237 repurchase price $5,240,
6.45%, 4/3/00 5,237
300,000 Donaldson, Lufkin & Jenrette,
dated 3/31/00, repurchase price
$300,157, 6.375%, 4/3/00 300,000
125,000 Greenwich Capital Markets,
dated 3/31/00, repurchase price
$125,065, 6.30%, 4/3/00 125,000
49,054 Paine Webber, Inc., dated 3/31/00,
repurchase price $49,070,
6.375%, 4/3/00 49,054
---------
Total Repurchase Agreements
(cost $954,291) 954,291
---------
Total Investments - 99.8%
(cost $6,221,953) 6,221,953
Other Assets less Liabilities - 0.2% 15,278
---------
NET ASSETS - 100.0% $6,237,231
===========
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
U.S. GOVERNMENT MONEY MARKET FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES - 69.3%
FANNIE MAE - 33.7%
FNMA Bonds
$6,000 5.04%, 4/6/00 $6,000
5,000 4.97%, 4/12/00 5,000
10,000 6.625%, 3/1/01 9,999
FNMA Bond FRN
30,934 6.10%, 9/29/00 30,929
20,000 5.879%, 11/13/00 19,990
FNMA Discount Notes
25,000 5.77%, 5/4/00 24,868
15,000 5.755%, 5/11/00 14,904
10,000 5.765%, 5/11/00 9,936
50,000 5.89%, 6/1/00 49,500
10,000 5.61%, 9/1/00 9,762
---------
180,888
---------
FEDERAL FARM CREDIT BANK - 3.0%
16,000 FFCB MTN, 6.191%, 6/1/00 16,000
---------
FEDERAL HOME LOAN BANK - 6.5%
10,000 FHLB Bonds, 6.48%, 3/20/01 9,990
FHLB FRN
15,000 6.42%, 4/28/00 15,000
10,000 5.874%, 5/12/00 9,999
---------
34,989
---------
FREDDIE MAC - 26.1%
FHLMC Discount Notes
10,000 5.72%, 4/4/00 9,995
10,000 5.74%, 4/4/00 9,995
20,000 5.83%, 5/2/00 19,900
10,000 5.87%, 5/9/00 9,938
50,000 5.98%, 5/23/00 49,568
20,000 5.865%, 6/1/00 19,801
6,706 5.19%, 6/6/00 6,642
10,000 5.885%, 6/8/00 9,889
FHLMC MTN
5,000 6.75%, 3/30/01 5,000
---------
140,728
---------
Total U.S. Government Agencies
(cost $372,605) 372,605
---------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 30.4%
(Colld. by U.S. Government Securities)
$55,000 ABN-AMRO, dated 3/31/00,
repurchase price $55,028
6.30%, 4/3/00 $55,000
63,617 Bear Stearns, Inc., dated 3/31/00,
repurchase price $63,651,
6.45%, 4/3/00 63,617
35,000 Morgan Stanley, Inc., dated 1/19/00,
repurchase price $35,516,
5.83%, 4/19/00 35,000
10,000 Goldman Sachs & Co., dated 3/6/00,
repurchase price $10,099,
5.92%, 5/5/00 10,000
Total Repurchase Agreements
(cost $163,617) 163,617
---------
Total Investments - 99.7%
(cost $536,222) 536,222
Other Assets less Liabilities - 0.3% 1,728
---------
NET ASSETS - 100.0% $537,950
=========
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS March 31, 2000
U.S. GOVERNMENT SELECT MONEY MARKET FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES -102.1%
FEDERAL FARM CREDIT BANK - 3.1%
$14,750 FFCB Discount Notes,
5.80%, 5/15/00 $14,645
7,000 FFCB Medium Term FRN,
5.789%, 5/11/00 6,999
---------
21,644
---------
FEDERAL HOME LOAN BANK - 97.5%
FHLB Bonds
20,000 4.97%, 4/20/00 19,999
10,000 6.50%, 3/6/01 9,997
30,000 6.48%, 3/20/01 29,977
FHLB Discount Notes
150,000 6.05%, 4/3/00 149,950
95,260 6.05%, 4/3/00 95,228
75,000 5.71%, 4/26/00 74,703
50,000 5.804%, 5/3/00 49,742
5,000 5.80%, 5/3/00 4,974
15,000 5.745%, 5/10/00 14,907
15,000 5.875%, 5/17/00 14,887
25,000 5.829%, 5/31/00 24,757
25,000 5.843%, 6/7/00 24,728
30,537 5.92%, 8/16/00 29,849
25,000 5.92%, 8/18/00 24,429
20,000 5.93%, 8/23/00 19,526
FHLB FRN
15,000 6.375%, 4/14/00 15,000
10,000 6.025%, 4/14/00 10,000
10,000 5.874%, 5/12/00 9,999
25,000 6.075%, 9/27/00 24,989
25,000 6.07%, 10/6/00 24,992
---------
672,633
---------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
SALLIE MAE FRN - 1.5%
$10,000 6.515%, 6/30/00 $10,000
---------
Total U.S. Government Agencies
(cost $704,277) 704,277
---------
Total Investments - 102.1%
(cost $704,277) 704,277
Liabilities less Other Assets - (2.1)% (14,535)
---------
NET ASSETS - 100.0% $689,742
=========
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
MUNICIPAL MONEY MARKET FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 97.9%
ALABAMA - 1.2%
$1,800 Ashland Industrial Development
Board Revenue IDR VRDB (AMT),
Russell Corp. Project (SunTrust Bank
LOC), 4.05%, 4/7/00 $1,800
2,575 Columbia Industrial Development
Board Revenue Refunding Bonds IDR
VRDB (AMT), Russell Corp. Project
(SunTrust Bank LOC), 4.05%, 4/7/00 2,575
1,000 Eutaw Industrial Development Board
PCR VRDB, Mississippi Power Co.,
Greene County Project, 4.05%, 4/3/00 1,000
2,575 Geneva Industrial Development Board
IDR VRDN, Series 1997 (AMT),
Russell Corp. Project (SunTrust Bank
LOC), 4.05%, 4/7/00 2,575
700 Greenville City Industrial Development
Board Revenue Refunding VRDB,
Series 1992, Allied-Signal Project
(Honeywell International, Inc. Gtd.),
4.05%, 4/7/00 700
12,500 McIntosh Industrial Development Board
Environmental Improvement
Facilities Revenue Refunding VRDB,
Series 1998E (AMT), Ciba Specialty
Chemicals Corp., 4.15%, 4/3/00 12,500
4,250 Oxford G.O. VRDB, Trust Receipts,
SGB 34 (AMBAC Insured),
3.96%, 4/7/00 4,250
2,200 Selma Industrial Development Board
Revenue VRDB, Series A,
Meadowcraft, Inc. Project (Bank of
America LOC), 4.15%, 4/7/00 2,200
1,000 Stevenson Industrial Development Board
Environmental Improvement Revenue
VRDB, Series 1996 (AMT), Mead Corp.
Project (Soc Gen LOC), 4.05%, 4/3/00 1,000
4,100 Stevenson Industrial Development Board
Revenue VRDB, Series B (AMT),
Mead Corp. Project (Bank One LOC),
4.15%, 4/3/00 4,100
---------
32,700
---------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
ALASKA - 0.5%
$4,700 Alaska Housing Finance Corp. VRDB,
Merrill P-Floats PT-37,4.08%, 4/3/00 $4,700
3,750 Alaska International Airports Revenue
VRDB, Series I, Merlots
(AMBAC Insured), 4.05%, 4/7/00 3,750
4,700 Valdez Marine Term Revenue Refunding
Bonds, Series 1994A, ARCO Transportation
Project, 4.00%, 4/6/00 4,700
---------
13,150
---------
ARIZONA - 0.6%
1,175 Apache County IDA VRDN, Series 1996,
Imperial Components, Inc. Project
(Harris Trust & Savings Bank LOC),
4.05%, 4/7/00 1,175
9,500 Maricopa County IDA Hospital Revenue
VRDB Mayo Foundation, Morgan Stanley
Floater Certificates, Series 1998-103,
3.96%, 4/7/00 9,500
5,800 Rancho Ladera COP VRDN, Series 1999 A
(Credit Suisse First Boston LOC),
4.10%, 4/7/00 5,800
---------
16,475
---------
ARKANSAS - 0.4%
5,615 Arkansas State Development Finance
Authority Home Mortgage Revenue
VRDB, Series PT-257,
4.10%, 4/3/00 5,609
3,250 Lowell City IDR VRDB, Series 1996 (AMT),
Little Rock Newspapers, Inc. Project
(Bank of New York LOC),
4.00%, 4/7/00 3,250
1,950 West Memphis City IDR VRDN,
Proform Co. LLC Project (U.S. Bank LOC),
4.15%, 4/7/00 1,950
---------
10,809
---------
CALIFORNIA - 0.1%
1,550 Chula Vista IDR VRDB, Series 1996-B
(AMT), San Diego Gas & Electric Co.
3.75%, 4/3/00 1,550
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
$1,040 Sacramento City Finance Authority Lease
Revenue Refunding Bonds, Series 1997
SAK18, Paine Webber Municipal Trust
Receipts (AMBAC Insured), 4.00%, 4/7/00 $1,040
---------
2,590
---------
COLORADO - 2.6%
City and County of Denver Airport System
Subordinate Revenue Bonds, Series 1997 A
(AMT) (Bayerische Landesbank LOC),
3,300 3.65%, 4/7/00 3,300
3,500 3.85%, 5/11/00 3,500
10,860 City and County of Denver School
District No. 1 G.O. Unlimited Bonds,
Series PT-1135 (FGIC Insured),
3.90%, 10/26/00 10,860
3,500 Colorado HFA Economic Development
Revenue Bonds (AMT), Metal Sales
Manufacturing Corp. Project (Firstar
Bank LOC), 4.10%, 4/7/00 3,500
8,500 Colorado HFA Multi-Family Class,
Series A-1 (MBIA Insured), 3.90%, 4/3/00 8,500
9,200 Colorado HFA Multi-Family Insured
Mortgage Revenue VRDB, Series A,
3.96%, 4/7/00 9,200
9,900 Colorado HFA SFM VRDN, Series 1996 C,
Bank of America Trust Certificate,
4.01%, 4/7/00 9,900
3,600 Colorado Springs Utility Revenue VRDB,
Series A SGA-88, 4.00%, 4/3/00 3,600
11,155 Colorado Student Obligation Bond
Authority Revenue VRDB, Series A (AMT)
(SLMA Gtd.), 3.95%, 4/7/00 11,155
Pitkin County IDA VRDN, Aspen Skiing
Co. Project (Bank One LOC)
3,500 Series 1994-B (AMT), 4.10%, 4/3/00 3,500
1,460 Series 1994-A, 4.00%, 4/3/00 1,460
---------
68,475
---------
CONNECTICUT - 0.3%
7,000 Connecticut State G.O. VRDB, Series
1999 A, JPM Putter 110 (FGIC Insured),
3.83%, 4/3/00 7,000
---------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
DELAWARE - 0.5%
$3,200 Delaware State Economic Development
Authority IDR VRDB, Series 1998 (AMT),
C&C Family Limited Partnership
(PNC Bank LOC), 4.10%, 4/7/00 $3,200
2,925 Delaware State Economic Development
Authority PCR VRDB, Allied Signal Corp.
(Honeywell International, Inc. Gtd.),
4.05%, 4/7/00 2,925
7,500 Delaware State Health Facility Authority
Revenue Bonds, Beebe Medical Center
Project (Colld. by U.S. Government
Securities), 8.50%, 6/1/00 7,709
---------
13,834
---------
DISTRICT OF COLUMBIA - 2.6%
6,495 District of Columbia G.O. Bonds,
Series 1991 A (Colld. by U.S. Government
Securities), 6.75%, 6/1/00 6,653
4,165 District of Columbia G.O. Refunding
VRDB, P-Float, Series PA-568
(FSA Insured), 3.96%, 4/7/00 4,165
10,000 District of Columbia G.O. Refunding
VRDB, Series 1999B-12, ROC II
(FSA Insured), 3.96%, 4/7/00 10,000
1,000 District of Columbia G.O. Unlimited
Bonds (Colld. by U.S. Government
Securities), 7.10%, 6/1/00 1,005
31,000 District of Columbia Metropolitan Airport
Authority Passenger Facility Flexible
Term Notes (AMT) (Bank of America LOC),
3.90%, 4/24/00 31,000
5,320 District of Columbia Water & Sewer
Authority Revenue VRDB, Public Utility
Authority (FSA Insured),
Merrill Lynch P-Float, 3.96%, 4/7/00 5,320
3,300 District of Columbia Water & Sewer
Authority Revenue VRDB,
Citibank Eagle Trust, Series 985201
(FSA Insured), 3.96%, 4/7/00 3,300
7,590 District of Columbia Water & Sewer
Authority Revenue VRDB, Citicorp Eagle
Trust 8121A (FSA Insured), 3.96%, 4/7/00 7,590
---------
69,033
---------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS March 31, 2000
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
97.9% (CONT'D.)
FLORIDA - 3.0%
$4,000 Florida Board of Education Capital Outlay
Revenue VRDB, Series 1998-9, ABN-AMRO
MuniTops (FSA Insured), 4.01%, 4/7/00 $4,000
6,395 Florida State Board of Education Capital
Outlay Revenue VRDN, Series 1989 A,
Citibank Eagle Trust 96C0912,
3.96%, 4/7/00 6,395
7,145 Hillsborough County School District
VRDN, PTOB PCR-4 (MBIA Insured),
3.96%, 4/7/00 7,145
3,930 Jackson County PCR Refunding VRDB,
Series 1997, Gulf Power Co. Project,
4.05%, 4/3/00 3,930
6,700 Jacksonville Capital Project Revenue
VRDB, Series 2 (AMBAC Insured),
3.95%, 4/7/00 6,700
2,400 Jacksonville Electric Authority
Subordinated Revenue VRDB, Series C,
4.00%, 4/3/00 2,400
5,000 Miami-Dade County Educational Facilities
Authority Revenue VRDB, Florida
International University Foundation Project
(SunTrust Bank LOC), 3.95%, 4/7/00 5,000
1,900 Miami-Dade County IDA IDR VDRN,
Series 1998 (AMT), Fine Art Lamps Project
(SunTrust Bank LOC), 4.05%, 4/7/00 1,900
3,000 Miami-Dade County IDA VRDB (AMT),
Airis Miami LLC Project (AMBAC Insured),
3.95%, 4/7/00 3,000
2,000 Ocean Highway & Port Authority Revenue
VRDB (AMT) (ABN-AMRO LOC),
4.00%, 4/7/00 2,000
20,000 Orange County Health Facility Revenue
VRDB, Adventist Health - Morgan Stanley
Municipal Trust Receipts, Series 17
(AMBAC Insured), 4.08%, 4/7/00 20,000
4,340 Orange County HFA VRDN, Series
1987-A, Citicorp Eagle Trust (Colld. by
U.S. Government Securities),
3.96%, 4/7/00 4,340
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
$9,040 Putnam County Development Authority
PCR Bonds, National Rural Utility
Seminole Electric H-4 (National Rural
Utilities Coop. Finance Co. Gtd.),
4.05%, 9/15/00 $9,040
5,010 Sunshine State Government Finance
Authority CP Revenue Notes (AMT),
Government Finance Program (FGIC
Insured), 3.85%, 5/10/00 5,010
---------
80,860
---------
GEORGIA - 3.3%
11,800 Atlanta Housing Authority Multi-Family
VDRN, Series 1999 (AMT), Village of E.
Lake Phase II (Bank of America LOC),
4.10%, 4/7/00 11,800
2,100 Burke County Development Authority
PCR VRDB, Series 1994, Georgia Power
Co. Plant Vogtle Project (Georgia Power
Co. Gtd.), 4.00%, 4/3/00 2,100
5,300 Clayton County Development Authority
IDR VRDB, Series 1996, Blue Circle
Aggregates, Inc. Project (Denmark Danske
Bank LOC), 4.10%, 4/7/00 5,300
4,100 Clayton County Housing Authority
Multifamily Revenue VRDN (AMT),
Williamsburg South Apartments
(PNC Bank LOC), 4.15%, 4/7/00 4,100
5,200 DeKalb County Housing Authority
Revenue Refunding VRDB, Series 1995
(AMT), Cedar Creek Apartment Project
(General Electric Corp. LOC),
4.10%, 4/7/00 5,200
10,000 Fulton County School District, Citicorp
Eagle Trust Series 981001, 4.05%, 8/1/00 10,000
11,720 Georgia HFA SFM Bonds, Series 1999 B-4
PT 299, 4.00%, 10/12/00 11,720
Georgia Housing Finance Authority
Mortgage Bonds TOB,
765 Series 1990-D (AMT), 4.00%, 6/1/00 765
5,210 Series 1990-C (AMT), 4.00%, 6/1/00 5,210
12,000 Georgia State G.O. VRDB, Eagle Trust
Series 97C1001, 3.96%, 4/7/00 12,000
9,500 Georgia State G.O. Unlimited VRDB,
Series B, 3.95%, 4/7/00 9,500
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
$1,600 Gwinnett County IDR VRDN, Series 1998
(AMT), Network Publications, Inc.
(Bank of America LOC), 4.10%, 4/7/00 $1,600
4,150 Henry County Development Authority
Revenue Bonds, Series 1997 (AMT),
Atlas Roofing Corp. Project (Sun Trust
Bank LOC), 4.05%, 4/7/00 4,150
5,000 Savannah Economic Development
Authority Revenue VRDN, Series 1997
(AMT), Georgia Kaolin Terminals
(Bank of America LOC), 4.10%, 4/7/00 5,000
---------
88,445
---------
HAWAII - 0.1%
1,525 Hawaii State G.O. Bonds, Series 1991
(Colld. by U.S. Government Securities),
6.00%, 2/1/01 1,562
---------
ILLINOIS - 9.8%
3,195 Arlington Heights IDR VRDB, Series 1997
(AMT), 3E Graphics & Printing Project
(Harris Trust and Savings Bank LOC),
4.05%, 4/7/00 3,195
9,580 Aurora Rental Housing Revenue VRDB,
Series PA-328, Fox Valley Project
(Merrill Lynch & Co., Inc. Gtd.),
4.04%, 4/7/00 9,580
7,000 Bolingbrook Multi-Family Housing
Redevelopment Revenue Refunding VDRN,
Series 1997A (AMT), Amberton Apartments
(LaSalle National Bank LOC),
3.95%, 4/7/00 7,000
7,405 Chicago Board of Education G.O.
Unlimited VRDB, Series A (PA 616),
School Reform Board (FGIC Insured),
4.11%, 4/7/00 7,405
8,000 Chicago City G.O. Equipment Notes
(Harris Trust and Savings Bank LOC),
3.90%, 10/5/00 8,000
3,885 Chicago City Sales TRB VRDN, Series 1998
(PCR-8 PTOB) (FGIC Insured),
4.11%, 4/7/00 3,885
Chicago City 2nd Lien Revenue VRDB,
Midway Airport (MBIA Insured)
15,400 Series 1998A (AMT), 4.10%, 4/3/00 15,400
3,000 Series 1998B (AMT), 4.10%, 4/3/00 3,000
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
$10,000 Chicago G.O. Project & Refunding
Bonds, Series 1998M, Bank of America
Partnership (FGIC Insured),
3.62%, 7/13/00 $10,000
4,500 Chicago G.O. Refunding VRDB,
Series 1998, Citicorp Eagle Trust 981302
(FSA Insured), 3.96%, 4/7/00 4,500
2,655 Chicago IDR VRDN, Series 1996B (AMT),
Guernsey Bel, Inc. Project (LaSalle National
Bank LOC), 4.35%, 4/7/00 2,655
5,500 Chicago Midway Airport Revenue VRDB,
Series 1995 (AMT), American Trans Air,
Inc. Project (Bank One LOC),
4.05%, 4/7/00 5,500
5,250 Chicago Multi-Family Housing Revenue
VRDB, Series 1999A (AMT), Renaissance
Center LP Project (Harris Trust and
Savings Bank LOC), 4.05%, 4/7/00 5,250
7,000 Chicago Park District Tax Anticipation
Warrants, 4.375%, 9/15/00 7,006
6,400 Chicago Revenue VRDB, Series 2000,
Boys & Girls Club of Chicago (American
National Bank & Trust LOC),
4.00%, 4/7/00 6,400
7,300 Chicago School Reform Board G.O. VRDB,
Series 1996, Bank of America Variable Rate
Certificates (MBIA Insured), 4.01%, 4/7/00 7,300
3,750 Crestwood IDR VRDB (AMT), GMG
Warehouse LLC Project (LaSalle National
Bank LOC), 4.00%, 4/7/00 3,750
6,200 DuPage Water Commission Revenue
VRDB, 3.96%, 4/7/00 6,200
1,600 Des Plaines City VRDB, Series 1996,
Finzer Roller, Inc. Project (Harris Trust
and Savings Bank LOC), 4.05%, 4/7/00 1,600
3,600 Elgin City IDR VRDB, Series 1999 (AMT),
Questek Manufacturing Corp.
(American National Bank & Trust LOC),
4.10%, 4/7/00 3,600
3,450 Frankfort IDR VRDB, Series 1996,
Bimba Manufacturing Co. Project
(Harris Trust and Savings Bank LOC),
4.05%, 4/7/00 3,450
4,125 Fulton Industrial Development VRDB,
Series 1998 (AMT), Drives Inc. Project
(Harris Trust and Savings Bank LOC),
4.05%, 4/7/00 4,125
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
97.9% (CONT'D.)
ILLINOIS - 9.8% (cont'd.)
$1,800 Illinois Development Finance Authority
IDR VRDB, Series 1990 (AMT),
Solar Press, Inc. Project (LaSalle National
Bank LOC), 4.00%, 4/7/00 $1,800
2,265 Illinois Development Finance Authority
IDR VRDB, Series 1997A (AMT), Randall
Metals Corp. Project (LaSalle National
Bank LOC), 4.20%, 4/7/00 2,265
5,080 Illinois Development Finance Authority
Industrial Revenue VRDB, Series A (AMT),
General Converting Project (LaSalle
National Bank LOC), 4.00%, 4/7/00 5,080
4,400 Illinois Development Finance Authority
Industrial Revenue VRDB, Series 1996
(AMT), Touhy Limited Partnership Project
(LaSalle National Bank LOC),
4.00%, 4/7/00 4,400
3,900 Illinois Development Finance Authority
Industrial Revenue VRDB (AMT), Astron
Midwestern, Inc. Project (American
National Bank & Trust LOC),
4.05%, 4/7/00 3,900
4,000 Illinois Development Finance Authority
Revenue VRDB, Oak Crest Residence
Project (American National Bank &
Trust LOC), 4.00%, 4/7/00 4,000
900 Illinois Development Finance Authority
Revenue VRDB, Series 1989,
DE Akin Seed Co. (Bank One LOC),
4.05%, 4/7/00 900
3,950 Illinois Development Finance Authority
Revenue VRDB (AMT), Olive Can Co.
Project (LaSalle National Bank LOC),
4.00%, 4/7/00 3,950
5,950 Illinois Development Finance Authority
Revenue VRDN, Enterprise Office Campus
(Colld. by U.S. Government Securities),
4.15%, 6/1/00 5,950
5,500 Illinois Development Finance Authority
Revenue VRDN, Series 1998 (AMT),
Flying Food Fare, Inc. (Bank of America
LOC), 4.15%, 4/7/00 5,500
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
$4,545 Illinois Development Finance Authority
Revenue VRDN, Series 1999 (AMT),
Elite Manufacturing Technology, Inc.
Project (Harris Trust and Savings Bank
LOC), 4.05%, 4/7/00 $4,545
5,475 Illinois Development Finance Authority
Revenue VRDN, Series 1999A (AMT),
Nuevo Hombres LLC Project (American
National Bank and Trust LOC),
4.10%, 4/7/00 5,475
2,365 Illinois Development Finance Authority
IDR VRDN, Bimba Manufacturing
Co. Project (Harris Trust and Savings
Bank LOC), 4.05%, 4/7/00 2,365
6,400 Illinois Development Finance Authority
VRDB, Series A, Local Government
Finance Program (AMBAC Insured),
4.00%, 4/7/00 6,400
4,100 Illinois Development Finance Authority
VRDN, Series 1997 (AMT), Ciccone Food
Products, Inc. (Harris Trust and Savings
Bank LOC), 4.05%, 4/7/00 4,100
2,400 Illinois Educational Facilities Authority
VRDN, Cultural Pooled Financing Project
(American National Bank and Trust LOC),
3.95%, 4/7/00 2,400
9,000 Illinois Health Facilities Authority
Revenue Bonds, Evanston Hospital Corp.,
Series 1985B, 3.65%, 8/15/00 9,000
13,040 Illinois Housing Development Authority
Bonds, Homeowner Mortgage, Series B-2
(AMT), 4.20%, 1/24/01 13,040
2,400 Rockford IDR VRDB, Series 1998 (AMT),
Ring Can Corp. Project (SunTrust Bank,
LOC), 4.05%, 4/7/00 2,400
2,250 Romeoville IDR VRDB, Series 1997,
Metropolitan Industries, Inc. Project
(Harris Trust and Savings Bank LOC),
4.05%, 4/7/00 2,250
6,500 Savanna IDR VRDB, Series 1994,
Metform Corp. Project (Bank One LOC),
4.00%, 4/7/00 6,500
5,800 St. Clair County IDR VRDN (AMT),
Stellar Manufacturing Project (Bank of
America LOC), 4.15%, 4/7/00 5,800
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
$3,500 University of Illinois Revenue VRDB,
Auxiliary Facility System, Merlot Series
2000 S (MBIA Insured), 4.10%, 4/7/00 $3,500
7,500 Village of Ladd, IDR VRDB, Series 1996,
O'Neal Metals, Inc. (Bank of
America LOC), 4.15%, 4/7/00 7,500
2,710 Village of Niles IDR VRDB, Series 1996,
Lewis Spring & Manufacturing Co.
Project (Harris Trust and Savings
Bank LOC), 4.05%, 4/7/00 2,710
2,200 West Chicago City IDR VRDB, Series 1999
(AMT), Royal Gold Ribbon Foods
(Bank One LOC), 4.10%, 4/7/00 2,200
9,000 Will County Solid Waste VRDB,
Series 1997 (AMT), BASF Corp.
(BASF Corp. Gtd.), 4.15%, 4/3/00 9,000
4,600 Will-Kankakee Regulatory Development
Authority VRDN (AMT), T.H. Davidson
& Co., Inc. Project (LaSalle National
Bank LOC), 4.00%, 4/7/00 4,600
---------
260,331
---------
INDIANA - 2.9%
2,790 Anderson City Economic Development
Revenue VRDB, Series 1996 (AMT),
Gateway Village Project (FHLB LOC),
4.00%, 4/7/00 2,790
5,500 Avilla Economic Development Revenue
VRDB, Series 1996 (AMT), Pent
Assemblies, Inc. Project (Bank One LOC),
4.10%, 4/7/00 5,500
1,500 Greencastle Industry Development
Revenue VRDB (AMT), Crown
Equipment Corp. Project (KeyBank LOC),
4.10%, 4/7/00 1,500
2,840 Hammond City Economic Development
Revenue VRDB, Series 1996-A (AMT),
Annex at Douglas Point Project
(FHLB LOC), 4.00%, 4/7/00 2,840
14,985 Indiana Bond Bank Advance Funding
Program Notes, Series A-2, 4.75%, 1/18/01 15,052
5,000 Indiana Development Finance Authority
Facility Revenue Refunding VRDB (AMT)
(LaSalle National Bank LOC),
4.00%, 4/7/00 5,000
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
Indiana Development Finance Authority
IDR VRDB, Red Gold, Inc. Project
(Harris Trust and Savings Bank LOC),
$4,600 Series 1994-A, 4.05%, 4/7/00 $4,600
2,900 Series 1994-B (AMT), 4.05%, 4/7/00 2,900
17,000 Indiana Transportation Authority
Highway Revenue Bonds, Citicorp Eagle
Trust Series 981402, 4.05%, 8/1/00 17,000
1,000 Indianapolis Airport Authority Revenue
Refunding Bonds, Series A (AMT)
(FGIC Insured), 4.50%, 7/1/00 1,002
3,700 Indianapolis City Citizens Gas and Coke
Utility CP (Indianapolis Gas Utility LOC),
3.55%, 4/12/00 3,700
Jasper County PCR Bonds, Series 1988A,
Northern Indiana Public Service Project
(Northern Indiana Public Service Gtd.)
1,000 3.90%, 4/13/00 1,000
3,600 4.50%, 6/14/00 3,600
2,000 Jasper County PCR Bonds, Series 1988D,
Northern Indiana Public Service Project
(Northern Indiana Public Service Gtd.)
4.35%, 6/9/00 2,000
1,100 Madison Economic Development
Authority Revenue VRDB, Arvin Sango,
Inc. Project (Bank One LOC),
4.10%, 4/7/00 1,100
4,500 Marshall County Economic Development
Revenue VRDB, Series 2000, Culver
Educational Foundation Project
(Bank One LOC), 4.00%, 4/7/00 4,500
4,000 Merrillville Multi-School Building Corp.
Revenue Bonds, Series 1990, Prerefunded,
7.50%, 7/15/00 4,118
---------
78,202
---------
IOWA - 1.5%
Iowa Finance Authority Waste Disposal
Revenue VRDB, Cedar River Paper Co.
Project (Union Bank of Switzerland LOC)
1,100 Series 1993-A (AMT), 4.15%, 4/3/00 1,100
25,500 Series 1994-A (AMT), 4.15%, 4/3/00 25,500
7,500 Series 1995-A (AMT), 4.15%, 4/3/00 7,500
4,300 Series 1996-A (AMT), 4.15%, 4/3/00 4,300
900 Series 1997-A (AMT), 4.15%, 4/3/00 900
---------
39,300
---------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
97.9% (CONT'D.)
KANSAS - 0.6%
$5,970 Kansas City GNMA Revenue VRDB,
Series 1988B (Colld. by U.S.
Government Securities), 4.10%, 4/7/00 $5,970
1,000 Olathe City IDR VRDB, Series 1997A (AMT),
Diamant Boart, Inc. Project (Deutsche
Bank LOC), 4.05%, 4/7/00 1,000
5,975 State Department of Transportation
Highway Revenue VRDB, Eagle
Series 20001601, 3.96%, 4/7/00 5,975
3,000 Topeka Temporary Notes, Series 1999-A,
3.50%, 6/1/00 3,001
---------
15,946
---------
KENTUCKY - 2.5%
5,701 Carroll County Solid Waste Disposal
Revenue VRDB (AMT), North American
Stainless Project (Banco Bilbao
Vizcaya LOC), 4.40%, 4/7/00 5,701
2,795 Clark County Industrial Building Revenue
VRDB, Series 1996 (AMT), Bluegrass
Art Cast Project (Bank One LOC),
4.10%, 4/7/00 2,795
Daviess Counties Waste Disposal Facilities
Revenue Bonds (AMT), Scott Paper Co.
Project (Kimberly-Clark Corp. Gtd.)
100 Series 1993-B, 4.00%, 4/7/00 100
1,200 Series 1994-A, 4.00%, 4/7/00 1,200
3,000 Kentucky Asset/Liability General
Funding TRAN, Series B, 4.50%, 6/28/00 3,005
10,000 Kentucky Association of Counties
Advance Revenue Cash Flow
Borrowing TRAN, 4.00%, 6/30/00 10,013
16,000 Kentucky Interlocal School Transportation
Association TRAN, 4.00%, 6/30/00 16,019
4,070 Kentucky State Turnpike Authority
Economic Development Authority VRDN,
Morgan Stanley Floating Rate Trust
Certificate 2000, Series 293
(AMBAC Insured), 4.01%, 4/7/00 4,070
3,855 Kentucky State Turnpike Authority
Economic Development Authority
Revenue Bonds (Colld. By U.S.
Government Securities), 7.25%, 5/15/00 3,928
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
$20,000 Louisville & Jefferson County
Regional Airport Authority
Revenue BAN, Series 1997A (AMT)
Airport Systems (National City Bank
Of Kentucky LOC), 4.05%, 4/7/00 $20,000
---------
66,831
---------
LOUISIANA - 1.1%
Ascension Parish Revenue VRDB,
BASF Corp. Project (BASF Corp.Gtd.)
2,000 Series 1997 (AMT), 4.15%, 4/3/00 2,000
1,000 Series 1998 (AMT), 4.15%, 4/3/00 1,000
4,700 Calcasieu Parish Industrial Development
Board VRDB, Series 1993-B, Olin Corp.
Project (Credit Suisse First Boston LOC),
4.10%, 4/3/00 4,700
2,600 Jefferson Parish Industrial Development
Board Revenue VRDB, Series 1994 (AMT),
Sara Lee Corp. Project (Sara Lee Corp.
Gtd.), 4.10%, 4/3/00 2,600
1,900 Jefferson Sales District TRB, Special Sales
Tax Revenue (FSA Insured), 5.00%, 12/1/00 1,911
6,900 Louisiana State G.O. VRDB, Citicorp Eagle
Trust Series 1994A (AMBAC Insured),
3.96%, 4/7/00 6,900
6,250 Parish of East Baton Rouge PCR VRDB,
Series 1993, Exxon Project (Exxon Mobil
Corp. Gtd.), 3.95%, 4/3/00 6,250
4,000 South Louisiana Port Commission Port
Facilities Revenue VRDB, Series 1997
(AMT), Holnam, Inc. Project
(Wachovia Bank LOC), 3.90%, 4/7/00 4,000
---------
29,361
---------
MAINE - 0.6%
2,000 Fort Fairfield Revenue VRDB (AMT),
Atlantic Custom Processors
(PNC Bank LOC), 4.10%, 4/7/00 2,000
5,000 Maine Public Utility Finance Bank
Revenue VRDN (AMT), Series 1996,
Maine Public Service Co. Project
(Bank of New York LOC), 4.00%, 4/7/00 5,000
9,995 Maine State Housing Authority
Mortgage Purchase VRDB,
Series 1998F-2, 4.06%, 4/7/00 9,995
---------
16,995
---------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
MARYLAND - 1.6%
$2,100 Baltimore Economic Development
Revenue VRDB, Mt. Washington Pediatric
Hospital, Series 1985 (Mellon Bank LOC),
3.90%, 4/7/00 $2,100
1,000 Baltimore City Board of Commissioners
VRDN, Notre Dame Prep School Project
(SunTrust Bank LOC), 3.95%, 4/7/00 1,000
4,100 Cecil County Economic Development
Revenue Bonds, Steel Techs, Inc.
(PNC Bank LOC), 4.20%, 4/7/00 4,100
4,935 Howard County Multi-Family Housing
Revenue VRDB, Series PT-313 P-Floats
(Colld. by FNMA), 3.96%, 4/7/00 4,935
3,995 Maryland State Community Development
Administration Housing & Community
Development Notes, Series PT-284,
3.85%, 8/24/00 3,995
9 Maryland State Community Development
Administration VRDB, Series PT-12,
Merrill P-Floats, 4.08%, 4/3/00 9
10,000 Maryland State Community Development
Administration Housing & Community
Development Notes, Series 1999 (AMT),
4.05%, 12/14/00 10,000
2,675 Maryland State Economic Development
Corp. (AMT), Unisite Design, Inc.
(Mellon Bank LOC), 4.05%, 4/7/00 2,675
11,185 Northeast Maryland Waste Disposal
Authority Reserve Eagle Trust VRDN,
Series 96C2001 (MBIA Insured),
3.96%, 4/7/00 11,185
2,030 Washington Suburban Sanitary District
MDE General Construction Bonds,
Series I (Colld. by U.S. Government
Securities), 6.90%, 6/1/00 2,082
---------
42,081
---------
MASSACHUSETTS - 0.3%
3,100 Massachusetts State HFA SFM Revenue
Notes, Series A, 3.60%, 6/1/00 3,100
5,500 Massachusetts State Development
Finance Agency VRDN (AMT), Waste
Management, Inc. Project
(SunTrust Bank LOC), 4.05%, 4/7/00 5,500
---------
8,600
---------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
MICHIGAN - 3.9%
$7,500 Detroit Sewage Disposal System VRDN,
First Untion, Merlot Series 2000 A
(FGIC Insured), 4.05%, 4/7/00 $7,500
6,000 Jackson County Economic Development
Corp.VRDN, Production Saw & Machine
Co., Series 1999 (AMT) (Comerica
Bank LOC), 4.05%, 4/7/00 6,000
11,000 Michigan Hospital Finance Authority
Ascension Health Bonds,
Series B - ROC II-R, Series 1999-6
(MBIA Insured), 4.00%, 5/1/00 11,000
7,000 Michigan Hospital Finance Authority
VRDN, Series 2000, Mt. Clemens General
Hospital (Comerica Bank LOC),
3.90%, 4/7/00 7,000
8,000 Michigan State COP, New Center
Development, Inc. (Canadian Imperial
Bank of Commerce LOC),
4.75%, 3/1/01 8,035
5,000 Michigan State Housing Development
Authority Revenue VRDB, Series 1999
(AMT), Baldwin Villas (Comerica
Bank LOC), 4.05%, 4/7/00 5,000
5,000 Michigan State Strategic Fund
VRDN (AMT), Serta Restokraft
Mattress Co. Project (Comerica
Bank LOC), 4.05%, 4/7/00 5,000
2,200 Michigan State Strategic Fund VRDN,
Series 1999 (AMT), Great Lakes Metal
Stamping (Bank One, Michigan LOC),
4.10%, 4/7/00 2,200
2,000 Michigan State Strategic Fund VRDN,
Series 1999 (AMT), Midway Die &
Engineering (Bank One LOC),
4.10%, 4/7/00 2,000
3,000 Michigan State Strategic Fund VDRN
Dirksen Screw Co. Project
(Bank One, Michigan LOC),
4.05%, 4/7/00 3,000
11,500 Michigan State Strategic Fund Limited
G.O. VRDB, Series 1992 (AMT),
Dow Chemical Co. Project,
4.10%, 4/3/00 11,500
5,170 Michigan State Strategic Fund Limited
Obligation Revenue VRDN, Series 1998
(AMT), GT USA LLC Project
(Comerica Bank LOC), 4.05%, 4/7/00 5,170
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS March 31, 2000
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
97.9% (CONT'D.)
MICHIGAN - 3.9% (cont'd.)
$1,990 Michigan State Strategic Fund Limited
Obligation VRDB, Kruger
Commodities, Inc. Project (Harris Trust
and Savings Bank LOC), 4.05%, 4/7/00 $1,990
1,100 Midland County Economic Development
Corp. VRDN, The Dow Chemical Co.
Project (Dow Chemical Gtd.),
4.10%, 4/3/00 1,100
13,900 Midland County Economic Development
Corp. VRDN, Series 1993A
(AMT), Dow Chemical Corp. Project
(Dow Chemical Gtd.), 4.15%, 4/3/00 13,900
6,500 Oakland City Economic Development
Corp. VRDN, Series 1998,
Richard Tool & Die Corp.
(Comerica Bank LOC), 4.05%, 4/7/00 6,500
6,000 Southfield Economic Development
Revenue VRDB, Series 2000, Lawrence
Tech University Project (Bank One
Michigan LOC), 3.95%, 4/7/00 6,000
---------
102,895
---------
MINNESOTA - 0.9%
11,290 Minnesota Housing Finance Agency
SFM Bonds, Series 1998 F (AMT),
3.55%, 8/14/00 11,290
10,000 Rochester Health Care Facility
Revenue Bonds, Mayo Foundation,
Series B, 3.70%, 5/12/00 10,000
3,060 Stearns County Housing &
Redevelopment Authority VRDN (AMT),
Cold Spring Granite Co. Project
(U.S. Bank LOC), 4.15%, 4/7/00 3,060
---------
24,350
---------
MISSISSIPPI - 1.2%
19,485 Mississippi Gulf Coast Revenue
Refunding VRDB, Waste Water Treatment,
Merlot Series 99C698 (MBIA Insured),
4.10%, 4/7/00 19,485
8,965 Mississippi Home Corp. VRDN,
Series A-CL-6 PT-173, 4.01%, 4/7/00 8,965
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
$3,250 Mississippi Home Corp. Single
Family Revenue VRDB, Series G-CL-5
PT-146, 4.01%, 4/7/00 $3,250
---------
31,700
---------
MISSOURI - 2.4%
10,170 Kansas City IDA VRDN, Resh Health
Services System (MBIA Insured),
4.10%, 4/3/00 10,170
Missouri Higher Education Loan
Authority Student Loan Revenue Bonds
(AMT) (Bank of America LOC)
7,600 Series 1990A, 3.95%, 4/7/00 7,600
7,200 Series 1990B, 3.95%, 4/7/00 7,200
1,800 Missouri Higher Education Loan
Authority Student Loan Revenue
Refunding VRDB, Series 1991-B
(AMT) (MBIA Insured), 4.05%, 4/7/00 1,800
3,970 Missouri Housing Development
Community Mortgage Revenue Bonds,
Merrill P-Float PA-116, Series 1994A,
3.85%, 8/10/00 3,970
12,366 Missouri State Environmental
Improvement Authority Revenue Bonds,
Series 1992 (Kansas Power & Light
Co. Gtd.), 4.10%, 6/20/00 12,366
10,000 Missouri State Environmental
Improvement Authority VRDB,
Series 1992 (Kansas Power &
Light Co. Gtd.), 3.95%, 4/7/00 10,000
8,000 St. Louis City IDA VRDB, Series
1995 (AMT), Whispering Lakes
Apartment Project (Mercantile Bank of
St. Louis LOC), 4.00%, 4/7/00 8,000
3,000 St. Louis General Fund TRAN,
Series 1999-2000, 4.00%, 6/30/00 3,005
---------
64,111
---------
MONTANA - 0.1%
Montana Board of Housing SFM
P-Floats VRDN
2,240 Series PA-158, 4.01%, 4/7/00 2,240
1,180 Series PT-87, 4.01%, 4/7/00 1,180
---------
3,420
---------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
NEBRASKA - 0.2%
$3,900 Nebraska Investment Finance Authority
Revenue VRDB, Series E
(Colld. by GNMA Securities),
4.05%, 4/7/00 $3,900
1,600 Nebraska Investment Mortgage
Revenue VRDB, Series 1992D,
LB Trust Receipts, 4.10%, 4/7/00 1,600
---------
5,500
---------
NEVADA - 0.2%
6,200 Nevada State VRDB, Series 1997-SGB 31
(FGIC Insured), 3.96%, 4/7/00 6,200
---------
NEW HAMPSHIRE - 0.4%
1,625 New Hampshire Municipal Bond Bank
Revenue Bonds, Series C
(FSA Insured), 5.375%, 1/15/01 1,641
9,100 New Hampshire State G.O. BAN,
Series 1999A, 4.00%, 6/8/00 9,100
---------
10,741
---------
NEW JERSEY - 0.2%
5,750 New Jersey Transportation Corp. VRDB,
ROC 2000, Series 15 (AMBAC Insured),
3.96%, 4/7/00 5,750
---------
NEW MEXICO - 0.9%
3,900 Farmington PCR VRDB, Series C (AMT),
Arizona Public Service Co.
(Barclays Bank LOC), 4.10%, 4/3/00 3,900
5,090 New Mexico Mortgage Finance Authority
SFM VRDN, Series B-2 PT-196
(Colld. by U.S. Government Securities),
4.01%, 4/7/00 5,090
15,000 New Mexico State TRAN,
4.50%, 6/30/00 15,022
---------
24,012
---------
NEW YORK - 4.5%
5,000 Metropolitan Transportation Authority
Revenue VRDB, Merlot Series 2000 F
(FGIC Insured), 4.10%, 4/7/00 5,000
9,000 New York City Municipal Water Finance
Authority Water and Sewer System
Revenue Bonds, Series 26 SGB
(MBIA Insured), 3.93%, 4/7/00 9,000
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
$13,200 New York City Transitional Finance
Authority BAN, VRDN, Series 1,
4.00%, 4/7/00 $13,200
1,900 New York City VRDN, Subseries B-2
(Morgan Guaranty Trust Co. LOC),
4.10%, 4/3/00 1,900
4,800 New York City VRDN, Subseries 1993 E-3
(Morgan Guaranty Trust Co. LOC),
3.90%, 4/3/00 4,800
1,700 New York City G.O. VRDB, Sub-Series A-7
(Morgan Guaranty Trust Co. LOC),
3.90%, 4/3/00 1,700
4,225 New York Municipal Securities Trust
Receipts VRDN, Series SGB 33
(FSA Insured), 3.93%, 4/7/00 4,225
6,600 New York RAN VRDN, Series A,
4.00%, 4/7/00 6,600
New York State Dormitory Authority
Revenue VRDB, Rockefeller University,
Citicorp Eagle Trust
5,000 Series A 97C3201, 3.96%, 4/7/00 5,000
6,100 Series A 97C3202, 3.96%, 4/7/00 6,100
3,650 New York State Dormitory Authority
Revenue Bonds, State University
Educational, Series B (Colld. by
U.S. Government Securities),
7.25%, 5/15/00 3,737
14,850 New York State Energy Research &
Development Authority Bonds,
Eagle Trust Series 943206 (FGIC Insured),
3.55%, 8/25/00 14,850
3,000 New York State Energy Research &
Development Authority VRDB, Series A,
Niagara Mohawk Power Project
(Toronto-Dominion Bank LOC),
4.10%, 4/3/00 3,000
16,725 New York State Environmental Facilities
Corp. Eagle Trust (FSA Insured),
4.15%, 8/25/00 16,725
8,500 New York State Enviromental Facilities
Corp. State Water PCR VRDB
(FSA Insured), 3.96%, 4/7/00 8,500
15,000 Suffolk County TAN, Series I
(Credit Local de France LOC),
4.50%, 8/10/00 15,029
---------
119,366
---------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
97.9% (CONT'D.)
North Carolina - 1.6%
$2,200 Brunswick County IDR PCR VRDB,
Series 1996 (AMT), Armada Project
(Bank of America LOC),
4.10%, 4/7/00 $2,200
5,200 Capital Region Airport Commission
Passenger Facilities Charge Revenue VRDB
(AMT) (First Union National Bank LOC),
4.10%, 4/7/00 5,200
7,000 Catawba County IDR PCR Bonds,
Series 1996 (AMT), Hooker Furniture Corp.
Project (Bank of America LOC),
4.10%, 4/7/00 7,000
3,000 Columbus County Industrial Facilities
PCR VRDB, Series 1998 (AMT),
Conflandey, Inc. Project (Banque
Nationale de Paris LOC),
4.15%, 4/7/00 3,000
2,200 Mecklenburg County IDR PCR VRDB,
Series 1996 (AMT),
SteriGenics International Project
(Comerica Bank LOC), 4.05%, 4/7/00 2,200
315 North Carolina HFA Single Family
Revenue Bonds, First Chicago TOB,
4.50%, 9/1/00 315
7,385 North Carolina State G.O.
Unlimited VRDN, Series A ROC48,
3.96%, 4/7/00 7,385
3,400 North Carolina State Ports Authority
VRDN, Series 1996 (AMT),
Morehead City Terminals, Inc.
(Bank of America LOC), 4.10%, 4/7/00 3,400
8,500 Person County Industrial Facilities
& PCR VRDN, Carolina Power & Light,
Series 1992 A (Carolina Power &
Light Gtd.), 4.05%, 4/7/00 8,500
2,300 Person County PCR VRDN (AMT),
Carolina Power & Light (SunTrust Bank,
Inc. LOC), 4.15%, 4/3/00 2,300
---------
41,500
---------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
NORTH DAKOTA - 0.5%
$4,945 North Dakota State HFA Housing
Finance Program Bonds,
Series PT-1189, P-Floats,
4.00%, 10/19/00 $4,945
8,000 North Dakota State HFA Housing
Finance Program Home Mortgage Finance
Revenue Bonds, Series E (AMT),
3.80%, 9/29/00 8,000
---------
12,945
---------
OHIO - 0.8%
4,200 Clinton County Hospital Revenue Bonds,
Ohio Hospital Capital, Inc.
Pooled Financing (Fifth Third Bank LOC),
4.00%, 4/7/00 4,200
6,185 Dublin Economic Development Revenue
Refunding VRDB, Series 2000,
Dublin Inn Ltd. Project (Huntington
National Bank LOC),
4.00%, 4/7/00 6,185
1,000 Ohio State Air Development Authority
PCR (AMT), Ohio Edison Co. Project
(UBS AG LOC), 4.20%, 5/1/00 1,000
6,600 Student Loan Funding Corp. Senior
Revenue Refunding Bonds,
Series 1998A-1 (AMT),
3.90%, 4/7/00 6,600
1,985 Union County Industrial Revenue Bonds
(AMT), Union Aggregates Co.
Project (PNC Bank LOC),
4.10%, 4/7/00 1,985
---------
19,970
---------
OKLAHOMA - 0.7%
6,700 Oklahoma Development Financing
Authority Revenue VRDB, Series A,
Oklahoma Hospital Association
(CDC Funding Corp. GIC), 4.00%, 4/7/00 6,700
6,015 Oklahoma HFA SFM Revenue
VRDB, Series 1996 B, PT-78,
4.01%, 4/7/00 6,015
6,740 Tulsa Airports Improvement Variable
Rate Certificates, Series B-1
(MBIA Insured), 4.01%, 4/7/00 6,740
---------
19,455
---------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
OREGON - 0.8%
$2,585 Medford Hospital Facilities Authority
Revenue Bonds, Series A,
Asante Health System (MBIA Insured),
4.50%, 8/15/00 $2,592
1,100 Metropolitan Service District Riedel
Compost Waste Disposal VRDN (AMT)
(U.S. Bank LOC), 4.10%, 4/7/00 1,100
7,700 Oregon Economic Development Revenue
VRDB, Series 176 (AMT), Cascade Steel
Rolling Mills Project (Wells Fargo
Bank LOC), 4.00%, 4/7/00 7,700
4,500 Oregon Housing & Community Services
Department Mortgage SFM Bonds,
Series H, 3.48%, 6/29/00 4,500
6,600 State of Oregon Revenue VRDN,
Series 181 (AMT), Oregon Metal Slitters, Inc.
(Key Bank LOC), 4.05%, 4/7/00 6,600
---------
22,492
---------
PENNSYLVANIA - 3.9%
125 Allegheny County Hospital Development
Authority VRDN, Series B-1,
Presbyterian University Hospital
(Bank One, Michigan, LOC),
4.00%, 4/3/00 125
Allegheny County Hospital VRDN,
Presbyterian Health Center (MBIA Insured)
7,350 Series C, 4.00%, 4/3/00 7,350
1,500 Series D, 4.00%, 4/3/00 1,500
3,000 Allegheny County IDA VRDN, Sewickley
Academy, Series A (PNC Bank LOC),
4.00%, 4/7/00 3,000
1,540 Allegheny County Adjustable Rate
Bonds, Series C-41, 4.00%, 4/7/00 1,540
4,450 Allentown Commercial & IDR VRDB,
Diocese of Allentown (First Union
National Bank of Charlotte LOC),
3.95%, 4/3/00 4,450
12,445 Beaver County IDA PCR VRDN,
Series PA-602, Ohio Edison Project
(Merrill Lynch & Co., Inc. Gtd.),
4.11%, 4/7/00 12,445
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
$3,600 Chester County IDA Bonds,
Series 1997 (AMT), KAC III Realty Corp.
Project (PNC Bank LOC),
4.10%, 4/7/00 $3,600
22,495 Delaware Valley Regional Financing
VRDB, Merrill Lynch P-Floats,
Series 1997 A PT-1004 (AMBAC Insured),
4.06%, 4/7/00 22,495
4,000 Geisinger Authority Health System
Revenue VRDB, Geisinger System
Services, Series 1998, 3.95%, 4/3/00 4,000
1,380 Lancaster County Solid Waste Revenue
Bonds, Series A (AMT) (AMBAC Insured),
5.00%, 12/15/00 1,386
4,845 Pennsylvania Convention Center
Authority Revenue VRDB, Series A PT-1224
(FGIC Insured), 3.96%, 4/7/00 4,845
3,500 Pennsylvania Economic Development
Financing Authority Economic
Development Revenue VRDB,
Series 1996 A1-8 (AMT)
(PNC Bank LOC), 4.10%, 4/7/00 3,500
10,145 Pennsylvania Economic Development
Financing Authority Bond,
Series 1999 (AMT), Approved Solid
Waste Projects (Bayerische Landesbank
GIC), 4.10%, 12/15/00 10,145
1,100 Pennsylvania Higher Education
Assistance Agency Student Loan
Adjustable Tender Revenue VRDB,
Series 1988E (AMT) (SLMA Insured),
4.00%, 4/7/00 1,100
3,050 Pennsylvania Higher Education
Assistance Agency Student Loan
Revenue VRDB, Series 1994 A (AMT)
(SLMA Insured), 4.00%, 4/7/00 3,050
3,125 Pennsylvania Housing Financing
Agency SFM Revenue Bonds,
Series 229 (AMT), 4.16%, 4/7/00 3,125
7,000 Philadelphia Hospitals & Higher
Education Facilities VRDN,
Jefferson Health System, Series B,
4.375%, 3/27/01 7,000
3,000 Philadelphia TRAN, Series 1999-2000 A,
4.25%, 6/30/00 3,005
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
97.9% (CONT'D.)
PENNSYLVANIA - 3.9% (cont'd.)
$2,200 Quakertown Hospital Authority VRDN,
HPS Group Financing (PNC Bank LOC),
4.00%, 4/7/00 $2,200
2,800 Washington County IDR Revenue VRDN
(AMT), Accutrex Products, Inc.
(Mellon Bank LOC), 4.10%, 4/7/00 2,800
---------
102,661
---------
SOUTH CAROLINA - 0.4%
5,400 Cherokee County IDR VRDN,
Series 1989 (AMT), Oshkosh Truck
Corp. Project (Bank of America LOC),
4.05%, 4/7/00 5,400
5,400 South Carolina Jobs Economic
Development Revenue VRDB,
Virtual Image Technology LLC,
Series 1998 (AMT) (Bank of America
LOC), 4.15%, 4/7/00 5,400
---------
10,800
---------
SOUTH DAKOTA - 1.1%
Lawrence County Solid Waste VRDB,
Homestake Mining of California
(Chase Manhattan Bank LOC)
6,700 Series 1997-A (AMT), 4.15%, 4/3/00 6,700
7,870 Series 1997-B, 4.10%, 4/3/00 7,870
8,410 South Dakota Economic Development
Finance Authority VRDB, Series 1996,
Hastings Filters, Inc. Project (Harris Trust
& Savings Bank LOC), 4.00%, 4/7/00 8,410
7,280 South Dakota HDA Homeownership
Revenue VRDB, Series 231 (AMT),
4.21%, 4/7/00 7,280
---------
30,260
---------
TENNESSEE - 3.4%
1,300 Dickson County IDR VRDB,
Series 1996 (AMT), Tennessee Bun Co.
LLC Project (PNC Bank LOC),
4.10%, 4/7/00 1,300
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
$6,000 Jackson City Industrial Development
Board Waste Facility VRDB,
Series 1995, Florida Steel
Corp. Project (Bank of America LOC),
4.10%, 4/7/00 $6,000
4,500 Johnson City Health & Education
Facilities Refunding VRDB, Series 2000-A
(MBIA Insured), 4.00%, 4/7/00 4,500
2,100 Knox County G.O. Public
Improvement Bonds, 4.50%, 4/1/00 2,100
14,815 Memphis-Shelby County Airport
Authority Airport Revenue VRDB
(AMBAC Insured), 4.05%, 4/7/00 14,815
23,175 Metropolitan Nashville & Davidson
Counties Electric Revenue VRDN,
Citicorp Eagle Trust Series 984201,
3.96%, 4/7/00 23,175
1,200 Metropolitan Nashville Health &
Education VRDN, Adventist Health
Systems, Series 1996-A (SunTrust Bank
LOC), 3.95%, 4/7/00 1,200
2,000 Morristown City Industrial
Development Board VRDN,
BOS Automotive Products,
Series 1997 (AMT) (Hypo-Vereinsbank
LOC), 4.05%, 4/7/00 2,000
5,000 Nashville & Davidson County Housing
Revenue VRDB (AMT), Old Hickory
Towers Project (FHLB LOC),
4.00%, 4/7/00 5,000
4,160 Sevier County Public Building Authority
Local Government Public
Improvement VRDB, Series E-2 (AMT)
(AMBAC Insured), 3.95%, 4/7/00 4,160
Sevier County Public Building Authority
Local Government Public Improvement
VRDB (FSA Insured)
1,700 Series 4-A-1 (AMT), 4.05%, 4/3/00 1,700
1,100 Series 4-A-3, 4.00%, 4/3/00 1,100
3,000 Series 4-B-6, 4.00%, 4/3/00 3,000
1,000 Shelby County Health & Education
VRDN, Multifamily Housing-
Arbor Lake Project (PNC Bank LOC),
4.10%, 4/7/00 1,000
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
$8,300 Signal Mountain Revenue Refunding
VRDB, Alexian Village Project
(FSA Insured), 3.85%, 4/7/00 $8,300
12,500 Tennessee HDA Homeownership
Revenue Bonds, Series PG-2C (AMT),
3.57%, 8/15/00 12,500
---------
91,850
---------
TEXAS - 16.7%
15,400 Austin Airport System VRDN,
Series A (AMT) (Morgan Guaranty
Trust LOC), 3.90%, 4/7/00 15,400
Austin Utility System Revenue Bonds
(Colld. By U.S. Government Securities)
5,000 10.00%, 5/15/00 5,039
2,000 10.75%, 5/15/00 2,016
14,100 Bastrop Independent School District
VRDN, Municipal Securities Trust Receipts,
Series 1997 SGB 37 (PSF of Texas Gtd.),
3.96%, 4/7/00 14,100
21,350 Brazos River Authority PCR
Refunding VRDB, Series C3 (Bank of
America Corp. LOC), 3.50%, 6/19/00 21,350
7,860 Brazos River Authority PCR Refunding
Bonds VRDB, Series 1996-A (AMT),
Texas Utilities Electric Co. Project
(AMBAC Insured), 4.05%, 4/3/00 7,860
24,600 Brazos River Authority PCR VRDB,
Series 1997-A (AMT), Texas Utilities
Electric Co. Project (MBIA Insured),
4.15%, 4/3/00 24,600
3,500 Brazos River Harbor District VRDB,
Series 1996 (AMT), BASF Corp. Project
(BASF Corp. Gtd.), 4.15%, 4/3/00 3,500
6,250 Brazos River Harbor Navigation District
Brazoria County VRDN (AMT) (BASF
Corp. Gtd.), 4.15%, 4/3/00 6,250
1,000 Brazos River Harbor Navigation
District Revenue Refunding Bonds,
Series 1998-A (Dow Chemical Gtd.),
4.15%, 4/3/00 1,000
5,000 Calhoun County Navigation IDA
VRDN (AMT), Formosa Plastics Corp. USA
(Bank of America Corp. LOC),
3.95%, 4/7/00 5,000
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
$9,600 Comal Independent School District
VRDN, ABN-AMRO MuniTops,
Series 99-9 (PSF of Texas Gtd.),
4.03%, 4/7/00 $9,600
33,295 Dallas G.O. Refunding VRDB,
Morgan Stanley Floating Rate
Certificates, Series 93, 3.96%, 4/7/00 33,295
3,000 Dallas Ft. Worth Regional Airport
Revenue Refunding Bonds,
Citibank TOB, Series A
(FGIC Insured), 4.05%, 5/1/00 3,000
7,700 Denton County Independent School
District G.O.Bonds, Series B
(PSF of Texas Gtd.), 3.65%, 8/15/00 7,700
3,500 El Paso City Housing Financing Corp.
VRDB, Series 1993 (AMT), Viva
Apartments Project (General Electric
Corp. LOC), 4.10%, 4/7/00 3,500
7,850 Galveston County Housing Finance
Corp. SFM VRDN, P-Floats, Series PT-205
(Colld. by FNMA & GNMA),
4.01%, 4/7/00 7,850
8,400 Greater Texas Student Loan
Revenue Bonds, Series A (AMT)
(SLMA LOC), 4.22%, 2/1/01 8,400
Gulf Coast Waste Disposal Authority
Notes, BP Amoco PLC Project
(BP Amoco Oil Co. Gtd.)
4,600 3.75%, 4/1/00 4,600
4,200 Series 1994 (AMT) 4.05%, 4/3/00 4,200
4,525 Harris County Development Corp.
IDR VRDB, North American Galvanizing,
Series 2000 (AMT) (Bank One LOC),
4.10%, 4/7/00 4,525
15,300 Harris County Health Facilities
Development Corp. Revenue VRDB,
Methodist Hospital, Series 1994,
3.95%, 4/3/00 15,300
1,600 Harris County Industrial Development
Corp. Solid Waste Disposal Revenue
VRDB, Series 1999 (Exxon Mobil Corp.
Gtd.), 4.10%, 4/3/00 1,600
20,910 Harris County G.O. Subordinate Lien
Toll Road VRDB, Series 1999,
4.00%, 4/7/00 20,910
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
97.9% (CONT'D.)
TEXAS - 16.7% (cont'd.)
$20,420 Harris County Toll Road Unlimited
Tax Revenue VRDN, Citicorp Eagle Trust
No. 954302, Series 1994-A,
3.96%, 4/7/00 $20,420
11,880 Harris County Toll Road Unlimited
Tax Subordinate Lien Revenue VRDN,
Series CR138, 3.96%, 4/7/00 11,880
9,485 Houston Higher Education Financing
Authority VRDB, Soc Gen Municipal
Trust No. 83, Rice University Project,
4.03%, 4/7/00 9,485
7,240 Lower Colorado River Authority
Revenue Bonds, Series A
(AMBAC Insured), 4.00%, 11/9/00 7,240
2,100 North Texas Higher Educational
Authority Student Loan Revenue VRDB,
Series 1996-C (AMT) (AMBAC Insured),
3.95%, 4/7/00 2,100
10,000 Nueces River Authority Water Supply
VRDN, Series 97430, Corpus Christi Lake
Project (FSA Insured),
3.96%, 4/7/00 10,000
5,000 Port Arthur Navigation District
Revenue VRDN, Series 1998 (AMT),
BASF Corp. Project (BASF Corp. Gtd.),
4.15%, 4/3/00 5,000
18,425 Port Arthur Navigation District VRDN,
Series 1998 (AMT), Fina Oil & Chemical
Co. Project (FINA, Inc. Gtd.),
4.20%, 4/3/00 18,425
Port of Corpus Christi VRDN (AMT),
Koch Refining Co. Project
(Koch Industries Gtd.)
22,200 3.95%, 4/7/00 22,200
23,000 Series 1996, 3.95%, 4/7/00 23,000
9,000 Spring Branch G.O. VRDB
(PSF of Texas Gtd.), 3.96%, 4/7/00 9,000
35,000 State of Texas TRAN,
Series A, 4.50%, 8/31/00 35,110
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
$4,015 Texas A&M University Financing
System Revenue Bonds, Morgan Stanley
Floating Rate Trust Certificates 2000,
Series 300, 4.01%, 4/7/00 $4,015
4,420 Texas Department of Housing &
Community Affairs Residential Mortgage
Revenue Bonds, PT-1192 P-Floats,
4.00%, 10/12/00 4,420
5,781 Texas Dept of Housing & Community
Affairs SFM VRDB, Merrill P-Floats
PA-128 (MBIA Insured),
3.85%, 8/10/00 5,781
14,995 Travis County Health Facilities
Ascension Health Bonds,
B - ROC II-R, Series 1999-6
(MBIA Insured), 3.96%, 4/7/00 14,995
12,590 University of Texas Financing
System VRDN, Series B, 3.98%, 4/7/00 12,590
---------
446,256
---------
UTAH - 2.0%
4,800 Intermountain Power Agency Supply
Revenue VRDN, Eagle Trust CR-331
(FSA Insured), 3.96%, 4/7/00 4,800
2,500 Intermountain Power Agency Supply
Revenue Bonds, Series 1985-B
(Colld. By U.S. Government Securities),
10.375%, 7/1/00 2,568
15,400 Intermountain Power Agency VRDN
(AMBAC Insured), 3.55%, 4/13/00 15,400
7,665 Intermountain Power Agency
Revenue VRDB, Merrill Soc Gen
Trusts, Series 1995 SG-6 (FSA Insured),
3.96%, 4/7/00 7,665
500 Salt Lake City Suburban Apartment
Revenue VRDB, Series 1996-A
(UBS AG LOC), 3.95%, 4/7/00 500
8,340 Utah HFA SFM Bonds,
Series PT-236, 4.00%, 10/19/00 8,340
13,300 Utah Housing Financing Agency VRDN,
Series 1999-4 (AMT), 4.00%, 4/7/00 13,300
---------
52,573
---------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
VERMONT - 0.8%
Vermont Housing Finance Agency
Single Family Housing Notes (AMT)
$4,250 Series 10C, 3.15%, 4/28/00 $4,250
17,500 Series 12C, 4.25%, 3/9/01 17,500
---------
21,750
---------
VIRGINIA - 2.2%
3,700 Botetourt County IDA IDR VRDN (AMT),
Valley Forge Co. Project (Harris Trust &
Savings Bank LOC), 4.05%, 4/7/00 3,700
2,060 Emporia City IDA IDR Bonds,
Series 1999 (AMT) (Bank of America
LOC), 4.10%, 4/7/00 2,060
3,600 Halifax County IDA VRDN,
Series 1998 (AMT), D-Scan, Inc. Project
(Bank of America LOC),
4.10%, 4/7/00 3,600
12,300 Norfolk City G.O. Bonds,
Eagle Trust Series 944601, 3.96%, 4/7/00 12,300
3,550 Roanoke IDA VRDB, Carilion Health
System Obligated Group, Series 97A,
4.00%, 4/3/00 3,550
4,000 Town of Louisa IDA Bonds,
Virginia Electric & Power Co. Project
(Virginia Electric Power Co. Gtd),
3.85%, 4/20/00 4,000
4,700 Town of Louisa PCR Bonds
(Virginia Electric Power Co. Gtd),
3.95%, 4/4/00 4,700
3,400 Virginia College Building Authority Bonds,
Equipment Leasing Program,
4.25%, 2/1/01 3,400
5,560 Virgina Commonwealth Transportation
Board Revenue VRDB, US Route 58
Corridor, Eagle Trust Series 994601,
3.96%, 4/7/00 5,560
15,615 Virginia State G.O. Bonds,
Citicorp Eagle Trust Series 954601,
3.96%, 4/7/00 15,615
---------
58,485
---------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
WASHINGTON - 4.7%
$10,000 Chelan County Public Utilities District
No. 1 VRDN, Series A,
4.05%, 4/7/00 $10,000
1,200 Kent City Economic Development
Corp. IDR VRDN, Associated Grocers
Project (Bank of America LOC),
4.50%, 4/7/00 1,200
1,550 King County G.O. Public Transportation
Sales Tax Bonds, 4.625%, 12/1/00 1,555
9,525 King County Sewer Revenue VRDB,
Merlot Series 2000 E
(FGIC Insured), 4.10%, 4/7/00 9,525
3,215 Port of Seattle G.O. VRDN,
Series 23 (AMT), 4.06%, 4/7/00 3,215
2,075 Snohomish County G.O. Refunding
Bonds, School District No. 15
(FGIC Insured), 4.50%, 12/1/00 2,080
1,500 Washington Health Care Facilities
Authority VRDN, Fred Hutchinson
Cancer Research Center, Series B
(Morgan Guaranty Trust Co. LOC),
4.10%, 4/3/00 1,500
21,200 Washington Public Power Supply
System Revenue VRDN,
Citicorp Eagle Trust Series 944701,
4.06%, 4/7/00 21,200
21,700 Washington State G.O. Refunding VRDB,
Eagle Trust Series 1993-C,
3.96%, 4/7/00 21,700
11,950 Washington State G.O. VRDN,
Smith Barney SGB-13, Series 1993 B,
3.96%, 4/7/00 11,950
2,805 Washington State Health Facilities
Authority Revenue Bonds,
Virginia Mason Medical Center,
Series 1997 A (MBIA Insured),
4.75%, 8/15/00 2,813
4,000 Washington State Housing
Finance Commision Single Family
Program Notes, Series 1A-S (AMT),
4.20%, 2/1/01 4,000
7,000 Washington State Housing
Finance Commission
Mortgage Revenue VRDB, Inglenook
Court, Series 1995 (AMT)
(Colld. by FHLMC), 3.95%, 4/7/00 7,000
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
97.9% (CONT'D.)
WASHINGTON - 4.7% (CONT'D.)
$4,300 Washington State Housing Finance
Commision Mortgage Revenue VRDB,
Wandering Creek, Series 1995 (AMT)
(Colld. by FHLMC) 3.95%, 4/7/00 $4,300
4,675 Washington State Housing Finance
Community Single Family Program
Revenue Notes (AMT), 3.85%, 10/10/00 4,675
11,355 Washington State Public Power Supply
System Revenue Bonds,
Series A, Project I1 (Colld. By U.S.
Government Securities),
7.375%, 7/1/00 11,676
6,000 Washington State Public Power Supply
System Revenue Refunding Bonds,
Series B, Project No. 3, 7.10%, 7/1/00 6,051
---------
124,440
---------
WEST VIRGINIA - 0.6%
2,300 Brooke County IDR VRDB,
Series 1997 (AMT), Star-Kist Foods, Inc.
Project (H. J. Heinz Co. Gtd.),
4.10%, 4/7/00 2,300
3,300 Marion County Solid Waste Disposal
Revenue VRDB, Series B (AMT),
Granttown Project (National
Westminster Bank LOC), 3.95%, 4/7/00 3,300
2,000 Ritchie County IDR VRDN (AMT),
Simonton Building Products
(PNC Bank LOC), 4.10%, 4/7/00 2,000
4,500 West Virginia Economic Development
Authority IDR VRDN, Series 1999 (AMT),
Rubberlite, Inc. Project
(Bank of America LOC), 4.10%, 4/7/00 4,500
5,000 West Virginia Water Development
Authority Bonds, Water Development
Revenue Loan Program II, Series A
(Colld. By U.S. Government Securities),
7.70%, 11/1/00 5,202
---------
17,302
---------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
WISCONSIN - 5.0%
$4,225 Altoona School District BAN,
3.70%, 4/1/00 $4,225
5,050 Edgerton School District BAN,
4.45%, 9/25/00 5,056
3,150 Menomonie Area School District BAN,
4.25%, 11/1/00 3,150
5,000 Milwaukee City Promissory Notes,
Series 2000 A, 4.00%, 4/7/00 5,000
5,000 Milwaukee Metropolitan Sewerage
District Bonds, Series A,
4.25%, 10/1/00 5,002
5,515 Milwaukee Metropolitan Sewerage District
G.O. Refunding Bonds,
P-Float PT-1173, Series 1997 A,
4.20%, 9/14/00 5,515
5,675 Milwaukee Redevelopment Authority
VRDN, Washington Square Phase III,
Series 1986 (AMT) (LaSalle National
Bank LOC), 4.00%, 4/7/00 5,675
2,950 Milwaukee Redevelopment Authority
Refunding VRDB, Starline Manufacturing,
Inc., Series 1996 (Harris Trust &
Savings Bank LOC), 4.05%, 4/7/00 2,950
4,000 Milwaukee Short Term School VRDN,
Trust Receipts Certificates, Series 99B,
4.00%, 4/7/00 4,000
5,500 Monroe School District BAN,
4.40%, 6/12/00 5,504
5,325 Oak Creek IDR VRDB,
Series 1999 A (AMT), Fort Howard Steel,
Inc. Project (Bank One LOC),
4.10%, 4/7/00 5,325
4,290 Pewaukee IDR VRDB,
Series 1992 (AMT), HUSCO
International, Inc. Project
(Bank One LOC), 4.00%, 4/7/00 4,290
850 Sheboygan PCR Bonds, Series 1995,
Wisconsin Electric Power Co. Project
(Wisconsin Electric Co. Gtd.),
3.95%, 4/7/00 850
4,000 Whitewater Unified School District BAN,
4.40%, 9/11/00 4,004
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
$11,550 Wisconsin Clean Water Revenue Bonds,
ML P-Floats PT-1181, Series 1999,
3.85%, 8/24/00 $ 11,550
Wisconsin G.O. CP Notes,
3,000 4.00%, 6/15/00 3,000
9,138 4.00%, 6/16/00 9,138
4,000 Wisconsin Health & Education Facilities
Authority Revenue Bonds,
Medical College of Wisconsin, Series 1
(Colld. By U.S. Government Securities),
7.25%, 12/1/00 4,135
797 Wisconsin Health & Education Revenue
VRDB, Sinai Samaritan Medical Center,
Series 94 A (Marshall & Ilsley Bank LOC),
3.98%, 4/7/00 797
5,000 Wisconsin Housing & Economic
Development Authority Home Ownership
Revenue Bonds, Series I (AMT),
3.55%, 8/15/00 5,000
10,000 Wisconsin Housing & Economic
Development Authority Revenue
Floating Rate Trust Receipts,
Series 1997 (AMT), 4.15%, 4/7/00 10,000
30,000 Wisconsin Housing & Economic
Development Authority Single Family
Drawdown Revenue VRDB, Series PT-323,
4.06%, 4/7/00 30,000
---------
134,166
---------
WYOMING - 0.4%
1,500 Lincoln County PCR VRDB,
Pacificorp Project, 4.00%, 4/7/00 1,500
8,650 Lincoln County PCR VRDN,
Series A (AMT), Exxon Project,
4.10%, 4/3/00 8,650
---------
10,150
---------
MULTIPLE STATES POOLED SECURITIES - 1.3%
14,805 Pooled Puttable Float Option (AMT),
Series PPT-7D (Backed by Various
Housing Agencies), 4.50%, 4/3/00 14,805
4,620 Pooled Puttable Float Option (AMT),
Series PT6 (Backed by Various Housing
Agencies), 3.70%, 5/11/00 4,620
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
$930 Pooled Puttable VRDN, Series PPT2
(Backed by Alaska HFA & South
Dakota HDA), 3.92%, 4/5/00 $930
14,555 Greystone County Variable Rate Senior
Certificate Trust, Series 1998-1 (Credit
Suisse First Boston LOC), 4.08%, 4/7/00 14,555
---------
34,910
---------
Total Municipal Investments
(Cost $2,612,590) 2,612,590
---------
NUMBER
OF SHARES
(000S)
---------------
OTHER - 0.3%
1,425 AIM Tax Free Money Market Fund 1,425
800 Dreyfus Tax-Exempt Cash
Management Fund 800
2,824 Federated Municipal Obligations Fund 2,824
1,544 Federated Tax Free Trust Money
Market Fund No. 15 1,544
500 Federated Tax Free Trust Money
Market Fund No. 73 500
1,019 Provident Municipal Cash Fund (AMT) 1,019
298 Provident Municipal Fund 298
---------
Total Other
(Cost $8,410) 8,410
---------
Total Investments - 98.2%
(Cost $2,621,000) 2,621,000
Other Assets less Liabilities - 1.8% 47,096
---------
NET ASSETS - 100.0% $2,668,096
===========
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
CALIFORNIA MUNICIPAL MONEY MARKET FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 100.0%
CALIFORNIA - 90.7%
$2,000 Adelanto Public Utilities Authority
Revenue Bonds, Series 2000 B, Utility
System Project (California State
Teachers Retirement System LOC),
3.30%, 4/7/00 $2,000
10,000 Alameda County California
Board of Education TRAN,
3.50%, 6/30/00 9,999
2,500 Anaheim Union High School
District COP, 1999 School
Facility Bridge (FSA Insured),
3.25%, 4/7/00 2,500
11,500 California Health Facilities
Financing Authority FRN,
Morgan Stanley Muni Trust,
Series 1998-26, Kaiser Permanente
(FSA Insured), 3.41%, 4/7/00 11,500
300 California Health Facilities
Financing Authority Revenue Bonds,
Series 1991, Children's Hospital
(MBIA Insured), 3.15%, 4/7/00 300
4,000 California HFA Home Mortgage
Revenue Bonds Series D (AMT),
3.02%, 4/30/00 4,000
California HFA Home Mortgage
Revenue FRN,
1,200 Series 1991G, Merrill
P-Floats PT-40D, 3.41%, 4/7/00 1,200
1,180 Series 1993 B, Merrill P-Floats PT-14,
3.36%, 4/7/00 1,180
7,385 California HFA Housing Revenue FRN,
Series A-2 PT-258, Single Family
Mortgage Bonds, 3.41%, 4/7/00 7,385
7,125 California HFA Multifamily Housing
Revenue FRN, Series III-D (AMT)
(Morgan Guaranty Trust Co. LOC),
3.40%, 4/7/00 7,125
2,900 California HFA Multi-Unit Housing
Revenue FRN, Series 92A CR-231
(MBIA Insured), 3.65%, 8/8/00 2,900
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
$3,650 California Pollution Control Finance
Authority Revenue Bond, Series 1997 B
(AMT), Air Products Manufacturing Co.
(Air Products & Chemicals Corp. Gtd.),
3.35%, 4/7/00 $3,650
7,995 California Rural Home Mortgage
Finance Authority, Series B (AMT), PT-346,
(Colld. By U.S. Government Securities),
3.41%, 4/7/00 7,995
1,600 California School Facilities Financing
Corp. COP, Series D (KBC Bank LOC),
3.25%, 4/7/00 1,600
7,455 California State Department of Water
Resources VRDN, ML/SG Muni Trust
Receipts, Series SG-5, CVP, 3.36%, 4/7/00 7,455
5,200 California State Economic Development
Finance Authority, Series 1998 D, California
Independent Systems Operator Corp.
(Bank of America LOC), 3.30%, 4/7/00 5,200
20,190 California State G.O. Bank of America
Corp. Variable Rate Certificate, Series 1997
H (Colld. By U.S. Government Securities),
3.96%, 4/7/00 20,190
California State G.O., Citibank TOB
(FGIC Insured)
7,900 Series CR-52, 3.71%, 4/7/00 7,900
2,000 Series 5027 C, 3.71%, 4/7/00 2,000
5,000 California State G.O., Eagle Trust,
Series 990501, 3.46%, 4/7/00 5,000
9,640 California State G.O. Refunding Bonds,
PT 1194, 3.70%, 10/19/00 9,640
1,400 California State PCR Bond,
Series C, Southern California Edison Project
(Southern California Edison Corp. Gtd.),
3.70%, 4/3/00 1,400
2,600 California State Public Works Board
Series 2000-B Bank of America Variable Rate
Certificates, Series 1993 - A, University
of California (MBIA Insured),
3.41%, 4/7/00 2,600
13,800 California State Universities & Colleges
Revenue Bonds, Various Series
(AMBAC Insured), 4.00%, 4/7/00 13,800
10,120 California State Various Purpose G.O.
Bonds, Series 1997, Merrill Floating
Rate Receipts SG-91 (FGIC Insured),
3.36%, 4/7/00 10,120
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
$5,000 California State Veterans G.O., Merlot
Series 2000A (AMBAC Insured),
3.70%, 4/7/00 $5,000
5,000 California State Veterans G.O. Bonds,
Merlot Series 1999 - M, 3.70%, 4/7/00 5,000
3,500 California Statewide Community
Development Authority IDR Bonds,
Series 1998 A (AMT) A & B Die Casting Co.
(Bank of America LOC), 3.40%, 4/7/00 3,500
800 California Statewide Community
Development Authority,
Series C (AMT), Nichols Pistachio Project,
(Bank of America LOC), 3.40%, 4/7/00 800
1,200 California Statewide Community
Development Authority
Multifamily Housing Revenue Bond,
Series S (AMT), Concord Green
Apartments (FHLB San Francisco LOC),
3.25%, 4/7/00 1,200
1,100 California Statewide Community
Development Authority Solid Waste
Facilities Revenue Bonds,
Chevron USA, Inc. Project,
Series 1999 (AMT) (Chevron Oil Corp. Gtd.),
3.40%, 4/3/00 1,100
2,500 Campbell Union School District G.O.
TRAN, Series 1999,
4.25%, 11/1/00 2,510
1,100 Chico Multifamily Housing Revenue
Bonds, Series 1993 A, Ceres Plaza
Project (Chase Manhattan Bank LOC),
3.25%, 4/7/00 1,100
7,250 Chula Vista IDR Bond, Series
1996 B (AMT), San Diego Gas & Electric Co.,
3.75%, 4/3/00 7,250
17,835 Contra Costa County Home Mortgage
Revenue Bank of America Variable
Rate Certificates, Series 1997 C
(Colld. by U.S. Government Securities),
3.41%, 4/7/00 17,835
1,900 Contra Costa County Multifamily
Housing Revenue Bonds, Delta Square
Apartments (Colld. by FNMA),
3.25%, 4/7/00 1,900
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
$7,600 Contra Costa County Multifamily
Housing Revenue Bonds (AMT),
Lafayette Town Center Apartments
(Colld. by FNMA), 3.15%, 4/7/00 $7,600
4,000 Desert Sands California Unified
School District 1999 TRAN,
3.50%, 7/7/00 4,004
5,000 Elk Grove California Unified School
District 1999-2000 TRAN,
4.50%, 6/30/00 5,013
3,000 Hayward California Multifamily Housing
Revenue Bonds, Series 1984 A, Shorewood
Apartment Project (FGIC Insured),
3.15%, 4/7/00 3,000
300 Irvine California Assessment District
No. 89-10 (National Westminster
Bank LOC), 3.40%, 4/3/00 300
1,500 Irvine California Assessment District
No. 94-13, Oak Creek Limited Obligation
Improvement Bonds (Canadian Imperial
Bank LOC), 3.40%, 4/3/00 1,500
Kern County Public Facilities Project COP
(Bayerische Landesbank LOC)
2,850 Series A, 3.15%, 4/7/00 2,850
400 Series C, 3.15%, 4/7/00 400
2,700 Livermore Multifamily Housing Revenue
Bond, Series A (AMT), Portola Meadows
Apartments (Bank of America LOC),
3.35%, 4/7/00 2,700
4,300 Los Angeles Community Redevelopment
VRDN, Promenade Towers (Barclays Bank
LOC), 3.05%, 4/7/00 4,300
1,525 Los Angeles Convention and Exhibition
Center Revenue VRDN, Series 1993 PA-88
(MBIA Insured), 3.36%, 4/7/00 1,525
300 Los Angeles County Metropolitan
Transportation Authority Refunding
Bond, ML/SG Muni Trust, SGB-1,
Union Station Project (FSA Insured),
3.46%, 4/7/00 300
3,000 Los Angeles County Schools Pooled
Financing Program TRAN, Series 1999 A,
4.00%, 6/30/00 3,006
1,300 Los Angeles County TRAN,
Series 1999-2000, 4.00%, 6/30/00 1,300
3,400 Moorpark Unified School District
1999-2000 TRAN, 3.50%, 6/30/00 3,400
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
CALIFORNIA MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 100.0%
(CONT'D.)
CALIFORNIA - 90.7% (cont'd.)
$6,000 Moreno Valley Unified School
District 1999-2000 TRAN,
4.00%, 6/30/00 $6,009
2,000 Mountain View Los Altos Unified
High School District 1999 TRAN,
3.50%, 6/30/00 2,002
2,000 Mountain View Unified School
District 1999 TRAN,
3.50%, 6/30/00 2,002
3,000 Oakland California Revenue Bonds,
Merlot Series 2000 M (AMBAC Insured),
3.70%, 4/7/00 3,000
9,900 Orange County Apartment Development
Housing Revenue Bonds (AMT),
Wood Canyon Villas Issue B of 1991
(Bank of America LOC),
3.30%, 4/7/00 9,900
900 Orange County Apartment Development
Revenue Bonds, Series 1992 C, Pointe
Niguel Project (Colld. by FHLMC),
3.20%, 4/7/00 900
1,000 Orange County Sanitation Districts
1-3, 5-7 & 11, Series 1993 A
(AMBAC Insured),
3.40%, 4/3/00 1,000
650 Orange County Sanitation Districts
1-3, 5-7, 11, 13 & 14 COP (National
Westminster Bank LOC),
3.40%, 4/3/00 650
5,000 Peninsula Corridor Joint Powers
Farebox Revenue Bonds, Series A,
4.45%, 10/13/00 5,026
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 1,083
4,390 Regents of the University of California
Refunding Revenue Bonds, Series C, ML/SG
Muni Trust, SG-24 (AMBAC Insured),
3.36%, 4/7/00 4,390
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
$1,041 Riverside County Multifamily Housing
Revenue FRN, Series A, Ambergate
Apartments (Union Bank of California
LOC), 3.40%, 4/7/00 $1,041
2,400 Rocklin Unified School District TRAN,
4.125%, 10/1/00 2,406
6,800 Sacramento City Finance Authority
Lease Revenue Refunding Bond,
Series 1997 SAK 18 (AMBAC Insured),
4.00%, 4/7/00 6,800
3,100 Sacramento-Yolo Port District VRDN,
Series 1997 A (AMT), California Free
Trade Zone Project (Wells Fargo & Co.
LOC), 3.30%, 4/7/00 3,100
8,000 San Bernardino County 1999 TRAN,
3.75%, 9/29/00 8,009
8,000 San Bernardino Unified School District
1999 TRAN, 4.25%, 12/7/00 8,024
7,005 San Diego County 1999 TRAN,
5.00%, 9/29/00 7,059
3,955 San Diego Public Facilities Financing
Authority Sewer Revenue Bonds, ML/SG
Muni Trust SG-14 (AMBAC Insured),
3.36%, 4/7/00 3,955
5,000 San Diego Unified School District
1999-2000 TRAN, 4.25%, 9/29/00 5,021
6,000 San Francisco City and County Airport
Commission International Airport
Revenue FRN, Susquehanna
Structured Projects SSP-4 (AMBAC Insured),
3.43%, 4/7/00 6,000
12,500 San Francisco City and County
Redevelopment Agency (AMT),
1999 C Multifamily Housing Bonds,
3rd & Mission (Hypo Vereinsbank
LOC), 3.20%, 4/7/00 12,500
4,975 San Francisco City and County
Variable Rate Certificates,
Series 1996-AA6 (FGIC Insured),
3.91%, 4/7/00 4,975
445 Santa Clara County Housing Authority
VRDN, Series A (AMT),
Multifamily Avenida Espana Gardens
(Union Bank of California LOC),
3.75%, 4/7/00 445
See Notes to the Financial Statements.
<PAGE>
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
$4,000 Solano County TRAN, Series B,
4.50%, 12/15/00 $4,019
1,061 Tustin Limited Tax G.O.
Improvement Bonds,
Series A, Reassessment District 95-2
(KBC Bank LOC), 3.40%, 4/3/00 1,061
6,400 Victor Valley Joint Unified High School
District 1999 TRAN, 4.25%, 11/15/00 6,422
4,000 Watereuse Finance Authority
Revenue Bonds (FSA Insured),
3.25%, 4/7/00 4,000
1,300 West Riverside County Wastewater
Authority Revenue Bonds, Wastewater
Treatment System (National Westminster
Bank LOC), 3.40%, 4/3/00 1,300
4,015 Windsor Multifamily Housing
Revenue Bonds, Series 1995 A (AMT),
Oakmont at Windsor Project
(Chase Manhattan Bank LOC),
3.35%, 4/7/00 4,015
---------
366,746
---------
PUERTO RICO - 9.3%
Government Development Bank for
Puerto Rico Tax-Exempt CP
10,000 3.25%, 4/6/00 10,000
3,000 3.50%, 4/7/00 3,000
4,000 3.70%, 4/11/00 4,000
4,300 2.95%, 4/14/00 4,300
1,150 3.35%, 4/20/00 1,150
4,000 3.40%, 5/4/00 4,000
2,238 3.00%, 5/15/00 2,238
2,000 3.60%, 8/25/00 2,000
4,300 Puerto Rico Commonwealth Highway
and Transportation Authority TRB
Series A, (AMBAC Insured),
3.25%, 4/7/00 4,300
3,000 Puerto Rico Industrial Medical &
Environmental PCR Bonds,
Series 1983 A, Merck & Co.,
(Merck & Co. Gtd.),
3.80%, 12/1/00 3,000
---------
37,988
---------
Total Municipal Investments
(cost $404,734) 404,734
---------
NUMBER
OF SHARES VALUE
(000S) (000S)
---------------------------------------------------------------------------
OTHER - 0.1%
153 Federated Tax-Exempt
Money Market Fund No. 80 $153
113 Provident California
Money Fund No. 52 113
---------
Total Other (cost $266) 266
---------
Total Investments - 100.1%
(cost $405,000) 405,000
Liabilities less Other Assets - (0.1)% (383)
---------
NET ASSETS - 100.0% $404,617
=========
See Notes to the Financial Statements.
<PAGE>
NOTES TO THE
FINANCIAL STATEMENTS
MARCH 31, 2000
1. ORGANIZATION
Northern Funds (the "Trust"), a Massachusetts business trust, 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
the Trust, except for the California Municipal Money Market which is a non-
diversified portfolio of the Trust. 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 Northern Trust Company ("Northern Trust" or the "Adviser") serves as
investment adviser to the 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 accounting
principles generally accepted in the United States or "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. 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. 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 accounting principles generally
accepted in the United States or "GAAP" 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 March 31, 2000, 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 Fund were "California exempt-interest dividends," exempt from
California state personal income tax.
<PAGE>
NORTHERN FUNDS Annual 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 year ended
March 31, 2000, the Adviser voluntarily agreed to waive a portion of its
advisory fees as shown on the accompanying Statements of Operations. Northern
Trust also reimbursed 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 was 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. On October 1, 1999,
Northern Trust and First Data Investor Services Group, Inc. (now known as PFPC,
Inc., a member of PNC Financial Services Group) became the Funds' co-
administrators. The waivers and reimbursements described above are voluntary and
may be terminated at any time.
4. BANK LOANS
The Funds maintain a $50,000,000 revolving bank credit line for liquidity and
other purposes. Borrowings under this arrangement bear interest at .45% above
the Fed Funds rate.
As of March 31, 2000, there were no outstanding borrowings.
5. FEDERAL INCOME TAXES
At March 31, 2000, the approximate capital loss carryforwards for U.S.
Federal income tax purposes and their respective years of expiration are as
follows:
MARCH 31, MARCH 31,
AMOUNTS IN THOUSANDS 2007 2008
--------------------------------------------------------------------------------
Money Market - $ 19
Municipal Money Market - 119
California Municipal Money Market - 4
--------------------------------------------------------------------------------
These capital loss carryforwards are available to offset future
capital gains.
<PAGE>
REPORT OF INDEPENDENT
PUBLIC ACCOUNTANTS
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES:
NORTHERN MONEY MARKET FUND
NORTHERN U.S. GOVERNMENT
MONEY MARKET FUND
NORTHERN U.S. GOVERNMENT SELECT
MONEY MARKET FUND
NORTHERN MUNICIPAL MONEY MARKET FUND
NORTHERN CALIFORNIA MUNICIPAL
MONEY MARKET FUND
We have audited the accompanying statements of assets and liabilities of
Northern Funds (a Massachusetts business trust consisting of the Money Market
Fund, U.S. Government Money Market Fund, U.S. Government Select Money Market
Fund, Municipal Money Market Fund and California Municipal Money Market Fund),
including the schedules of investments, as of March 31, 2000, and the related
statements of operations, changes in net assets, and the financial highlights
for the periods indicated thereon. These financial statements and financial
highlights are the responsibility of the Funds' management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of March 31, 2000, by physical examination of the securities held by
the custodian and by correspondence with outside depositories and brokers. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective portfolios constituting Northern Funds as of March 31, 2000,
the results of their operations, changes in their net assets, and financial
highlights for the periods indicated thereon, in conformity with accounting
principles generally accepted in the United States.
ARTHUR ANDERSEN LLP
Chicago, Illinois
May 16, 2000
<PAGE>
NORTHERN FUNDS Annual Report
VOTING RESULTS OF SPECIAL
MEETING OF SHAREHOLDERS
At a Special Meeting of Shareholders of the Trust (the "Meeting") held on March
21, 2000, the following actions were taken:
(1) The following individuals were elected to serve on the Board of Trustees
by the shareholders of all Funds of the Trust voting together in the aggregate:
NUMBER OF
NUMBER OF VOTES
NAME OF TRUSTEE VOTES FOR WITHHELD
--------------------------------------------------------------------------------
Richard G. Cline 7,178,309,857 95,067,225
Edward J. Condon, Jr. 7,185,450,990 87,926,092
Wesley M. Dixon, Jr. 7,177,000,896 96,376,186
William J. Dolan, Jr. 7,159,425,515 113,951,567
John W. English 7,159,746,681 113,630,401
NUMBER OF
NUMBER OF VOTES
NAME OF TRUSTEE VOTES FOR WITHHELD
--------------------------------------------------------------------------------
Raymond E. George, Jr. 7,184,749,639 88,627,443
Sandra Polk Guthman 7,177,986,336 95,390,746
Michael E. Murphy 7,178,215,169 95,161,913
Mary Jacobs Skinner 7,179,380,618 93,996,464
William H. Springer 7,177,099,828 96,277,254
Richard P. Strubel 7,186,091,431 87,285,651
Stephen B. Timbers 7,185,776,172 87,600,910
--------------------------------------------------------------------------------
(2) The selection of Arthur Andersen LLP by the Board of Trustees as the
Trust's independent auditors for the fiscal year ending March 31, 2000 was
ratified by the shareholders of all Funds of the Trust voting together in the
aggregate as follows:
VOTES FOR VOTES AGAINST ABSTAINED
--------------------------------------------------------------------------------
7,212,860,731 20,828,426 39,687,925
--------------------------------------------------------------------------------
(3) An Agreement and Plan of Reorganization pursuant to which each Fund will
be reorganized as a series of Northern Funds, a Delaware business trust, was
approved by each of the Funds (voting separately on a Fund-by-Fund basis) as
follows:
FUND VOTES FOR VOTES AGAINST ABSTAINED
--------------------------------------------------------------------------------
Money Market 3,694,952,769 23,938,274 8,472,805
U.S. Government Money Market 204,775,704 7,325,777 32,395,588
U.S. Government Select
Money Market 780,697,950 1,214,803 995,165
Municipal Money Market 1,720,839,458 2,651,326 2,726,182
California Municipal Money Market 273,442,659 126,025 459,672
--------------------------------------------------------------------------------
(4) A new fundamental investment policy regarding investments in other
investment company securities and a related amendment to the Trust's Declaration
of Trust was approved by each of the Funds (voting separately on a Fund-by-Fund
basis) as follows:
FUND VOTES FOR VOTES AGAINST ABSTAINED
--------------------------------------------------------------------------------
Money Market 3,701,298,858 16,044,464 10,020,527
U.S. Government Money Market 211,550,086 484,749 32,462,233
U.S. Government Select Money Market 779,581,520 2,311,872 1,014,525
Municipal Money Market 1,718,744,985 2,984,885 4,487,096
California Municipal Money Market 272,392,237 1,176,446 459,672
--------------------------------------------------------------------------------
(A) A new investment policy on commodities was approved by each of the Funds
(voting separately on a Fund-by-Fund basis) as follows:
FUND VOTES FOR VOTES AGAINST ABSTAINED
--------------------------------------------------------------------------------
Money Market 3,699,050,455 15,198,050 13,115,343
U.S. Government Money Market 210,796,901 574,467 33,125,701
U.S. Government Select Money Market 778,978,265 2,218,707 1,710,945
Municipal Money Market 1,711,957,000 7,343,976 6,915,990
California Municipal Money Market 271,912,671 264,105 1,851,579
--------------------------------------------------------------------------------
(B) New investment policies on borrowing and lending were approved by each of
the Funds (voting separately on a Fund-by-Fund basis) as follows:
FUND VOTES FOR VOTES AGAINST ABSTAINED
--------------------------------------------------------------------------------
Money Market 3,693,039,349 21,767,593 12,556,906
U.S. Government Money Market 210,637,018 734,377 33,125,674
U.S. Government Select Money Market 778,845,294 2,410,368 1,652,255
Municipal Money Market 1,712,558,282 6,749,363 6,909,321
California Municipal Money Market 271,912,671 264,105 1,851,579
--------------------------------------------------------------------------------
(C) A new investment policy on issuer diversification was approved by each of
the Funds (voting separately on a Fund-by-Fund basis) as follows:
FUND VOTES FOR VOTES AGAINST ABSTAINED
--------------------------------------------------------------------------------
Money Market 3,703,071,934 11,916,436 12,375,478
U.S. Government Money Market 210,932,199 438,504 33,126,365
U.S. Government Select Money Market 779,127,842 2,127,820 1,652,255
Municipal Money Market 1,713,337,326 6,162,833 6,716,807
California Municipal Money Market 271,912,671 126,025 1,989,660
--------------------------------------------------------------------------------
(D) An amendment to eliminate the investment policy on mortgaging was
approved by each of the Funds (voting separately on a Fund-by-Fund basis) as
follows:
FUND VOTES FOR VOTES AGAINST ABSTAINED
--------------------------------------------------------------------------------
Money Market 3,701,957,137 12,782,706 12,624,005
U.S. Government Money Market 210,808,689 560,036 33,128,344
U.S. Government Select Money Market 778,990,645 2,265,017 1,652,255
Municipal Money Market 1,714,939,918 4,286,623 6,990,425
California Municipal Money Market 271,296,236 742,460 1,989,660
--------------------------------------------------------------------------------
(E) An amendment to eliminate the investment policy on puts and calls was
approved (voting separately on a Fund-by-Fund basis) as follows:
FUND VOTES FOR VOTES AGAINST ABSTAINED
--------------------------------------------------------------------------------
Money Market 3,701,941,099 11,946,448 13,476,301
U.S. Government Money Market 210,813,501 510,384 33,173,185
U.S. Government Select Money Market 778,901,411 2,516,346 1,490,160
Municipal Money Market 1,713,214,139 5,662,801 7,340,026
California Municipal Money Market 271,912,671 126,025 1,989,660
--------------------------------------------------------------------------------
(F) With respect to the Funds listed below, a new investment policy on
municipal investments was approved (voting separately on a Fund-by-Fund basis)
as follows:
FUND VOTES FOR VOTES AGAINST ABSTAINED
--------------------------------------------------------------------------------
Municipal Money Market 1,711,791,167 5,458,909 8,966,890
California Municipal Money Market 271,912,671 126,025 1,989,660
--------------------------------------------------------------------------------
<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, an independent third party.
(logo)
NORTHERN FUNDS
P.O. Box 2081
Milwaukee, WI 53201-2081
(800) 595-9111
NF MM ANR 500
