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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
FIXED INCOME FUNDS U.S. GOVERNMENT FUND
SHORT-INTERMEDIATE U.S. GOVERNMENT FUND INTERMEDIATE TAX-EXEMPT FUND
CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND FLORIDA INTERMEDIATE TAX-EXEMPT FUND
FIXED INCOME FUND TAX-EXEMPT FUND
ARIZONA TAX-EXEMPT FUND CALIFORNIA TAX-EXEMPT FUND
INTERNATIONAL FIXED INCOME FUND HIGH YIELD MUNICIPAL FUND
HIGH YIELD FIXED INCOME FUND EQUITY FUNDS
INCOME EQUITY FUND STOCK INDEX FUND
GROWTH EQUITY FUND SELECT EQUITY FUND
MID CAP GROWTH FUND SMALL CAP INDEX FUND
SMALL CAP FUND SMALL CAP GROWTH FUND
INTERNATIONAL GROWTH EQUITY FUND INTERNATIONAL SELECT EQUITY FUND
TECHNOLOGY 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 1
Portfolio Management Commentary 2
Money Market Funds
Statements of Assets and Liabilities 28
Statements of Operations 29
Statements of Changes in Net Assets 30
Financial Highlights 32
Schedules of Investments
Money Market Fund 37
U.S. Government Money Market Fund 42
U.S. Government Select Money Market Fund 43
Municipal Money Market Fund 44
California Municipal Money Market Fund 62
Fixed Income Funds
Statements of Assets and Liabilities 66
Statements of Operations 68
Statements of Changes in Net Assets 70
Financial Highlights 73
Schedules of Investments
U.S. Government Fund 79
Short-Intermediate U.S. Government Fund 80
Intermediate Tax-Exempt Fund 81
California Intermediate Tax-Exempt Fund 89
Florida Intermediate Tax-Exempt Fund 92
Fixed Income Fund 94
Tax-Exempt Fund 97
Arizona Tax-Exempt Fund 104
California Tax-Exempt Fund 106
International Fixed Income Fund 111
High Yield Municipal Fund 112
High Yield Fixed Income Fund 115
<PAGE>
Table of Contents continued on next page
TABLE OF CONTENTS (CONT'D.)
Equity Funds
Statements of Assets and Liabilities ..................................118
Statements of Operations ..............................................119
Statements of Changes in Net Assets ...................................120
Financial Highlights ..................................................122
Schedules of Investments
Income Equity Fund ..................................................128
Stock Index Fund ....................................................131
Growth Equity Fund ..................................................139
Select Equity Fund ..................................................142
Mid Cap Growth Fund .................................................144
Small Cap Index Fund ................................................147
Small Cap Fund ......................................................171
Small Cap Growth Fund ...............................................184
International Growth Equity Fund ....................................186
International Select Equity Fund ....................................188
Technology Fund .....................................................190
Notes to the Financial Statements.......................................192
Report of Independent Public Accountants............................... 199
Voting Results of Special Meeting of Shareholders.......................200
<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
PRIDES Preferred Redeemable Increased
Dividend Securities
PSF Permanent School Fund
RAN Revenue Anticipation Notes
REMIC Real Estate Mortgage
Investment Conduit
REIT Real Estate Investment Trust
ROC Reset Option Certificates
SFM Single Family Mortgage
SLMA SLM Holding Corp.
SOC GEN Societe Generale
TAN Tax Anticipation Notes
TECONS Term Convertible Securities
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
* Non-Income Producing
Security
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NOT FDIC-INSURED
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May lose value
No bank guarantee
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An investment in Northern Funds is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other governmental agency. Although the
money market funds seek to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in the Funds.
An investment in a non-money market fund involves risks including possible loss
of principle.
Shares of Northern Funds are distributed by Northern Funds Distributors, LLC, an
independent third party.
<PAGE>
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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
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<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%
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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%
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(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>
NORTHERN FUNDS Annual Report
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U.S. GOVERNMENT FUND
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The past fiscal year was a difficult and volatile period, as faster-than-
expected economic growth pushed interest rates sharply higher in anticipation of
restrictive Federal Reserve policy. Yields on two-year Treasuries moved
significantly higher during the year, while yields on 30-year Treasury bonds
actually decreased nearly 65 basis points (0.65 of a percentage point) in the
final quarter. This movement reflected the market's realization that burgeoning
Treasury surpluses would reduce the outstanding supply of Treasury bonds. Ripple
effects led agency and agency mortgage-backed securities to underperform
Treasuries, particularly among longer-term agencies that could not keep pace
with the buying frenzy in Treasuries.
Compared to the Fund's index return of 2.41 percent, the Fund generated a total
return of 1.67 percent for the fiscal year ended March 31, 2000. Duration, which
remained neutral versus the index, had little effect on performance. The income
that the Fund earned more than offset the negative influence of higher interest
rates. In addition, our decision to maintain greater exposure to agency and
agency mortgage-backed securities, relative to the index, had a positive impact
on total return.
We believe that future productivity gains should keep inflation in check,
helping the Fed achieve a slower rate of non-inflationary growth. In addition,
as economic growth continues to surprise on the upside, it's likely that larger-
than-forecasted surpluses will be generated and that these surpluses will be
used to buy back additional longer-dated Treasuries. We plan to maintain market
exposure to Treasury securities in recognition of the powerful supply-and-demand
forces benefiting these securities.
Recently, comments from Washington questioning whether government-sponsored
agencies still merit federal government support caused spreads on agency and
mortgage debt to widen versus Treasury issues. We believe that any further
weakness in agency and agency mortgage-backed securities should be viewed as a
potential buying opportunity.
Monty Memler
Portfolio Manager
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
NORTHERN U.S. GOVERNMENT FUND VS. LEHMAN BROTHERS INTERMEDIATE U.S. GOVERNMENT
BOND INDEX
FUND'S TOTAL RETURN
FOR THE PERIOD ENDED 3/31/00
----------------------------------------
ONE YEAR 1.67%
AVERAGE ANNUAL FIVE YEAR 5.71%
AVERAGE ANNUAL
SINCE INCEPTION 5.26%
U.S. GOVERNMENT Lehman Bros. Intermediate
FUND U.S. Government Bond Index
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4/1/94 $10,000 $10,000
3/31/95 10,349 10,427
3/31/96 11,141 11,376
3/31/97 11,584 11,915
3/31/98 12,615 13,034
3/31/99 13,373 13,891
3/31/00 13,597 14,226
This chart assumes an initial gross investment of $10,000 made on 4/1/94 (com-
mencement). Returns shown include the reinvestment of all dividends and reflect
fee waivers in effect; in the absence of fee waivers, performance would be
reduced. Past performance is not predictive of future results. Investment return
and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost.
The Lehman Brothers Intermediate U.S. Government Bond Index includes all public
obligations of the U.S. Treasury, and all publicly issued debt of U.S.
government agencies, quasi-federal corporations, and corporate or foreign debt
guaranteed by the U.S. government. Excluded are special issues, such as flower
bonds, targeted investor notes (TINs), and state and local government series
(SLGs) bonds. The Lehman Brothers Intermediate U.S. Government Bond Index
includes only those issues with maturities of up to ten years.
Unlike actual fund performance, performance of an index does not reflect any
expenses or transaction costs. A direct investment in an unmanaged index is not
possible. Additionally, unlike U.S. Treasury bonds and bills, the principal
value and investment return of the Fund are not guaranteed or insured by the
U.S. Government.
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<PAGE>
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SHORT-INTERMEDIATE U.S. GOVERNMENT FUND
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The past fiscal year was difficult and volatile for fixed income investors, as
faster-than-expected economic growth pushed interest rates sharply higher in
anticipation of restrictive Federal Reserve policy. Yields on two-year
Treasuries moved significantly higher during the year, but yields on 30-year
Treasury bonds actually decreased nearly 65 basis points (0.65 of a percentage
point) in the final quarter of the year. This dramatic divergence inverted the
Treasury yield curve, with two-year notes yielding 65 basis points more than 30-
year securities at the end of the year. The movement in yields reflected the
market's realization that burgeoning Treasury surpluses would reduce the
outstanding supply of Treasury bonds. Ripple effects led agency and agency
mortgage-backed securities to underperform Treasuries, with the greatest damage
in longer-term agencies, which could not keep pace with the buying frenzy in
long-term Treasuries.
For the period ended March 31, 2000, the Fund's total return was 1.76 percent,
which compared favorably to the index return of 1.28 percent. The income that
the Fund earned during the period more than offset the negative effect of higher
interest rates. Furthermore, our sector decisions provided a positive
contribution to the Fund's relative return. We maintained greater exposure to
agency securities and often used weakness in demand for non-Treasury issues as
an opportunity to add agency positions, enhancing the Fund's total return
potential.
Recent comments from Washington questioning whether government-sponsored
agencies still merit federal government support caused spreads on agency and
mortgage debt to widen versus Treasuries. As a consequence, the risk tolerance
of investors in government agency securities once again has been called into
question. Nevertheless, we believe that any further weakness in agency
securities should be viewed as a potential buying opportunity.
Peter Marchese
Portfolio Manager
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
NORTHERN SHORT-INTERMEDIATE U.S. GOVERNMENT FUND VS. MERRILL LYNCH 1-5 YEAR
GOVERNMENT INDEX
FUND'S TOTAL RETURN
FOR THE PERIOD ENDED 3/31/00
-------------------------------------
CUMULATIVE SINCE INCEPTION 1.76%
SHORT-INTERMEDIATE Merrill Lynch
U.S. GOVERNMENT 1-5 Year
FUND Government Index
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10/1/99 $10,000 $10,000
3/31/00 10,176 10,128
This chart assumes an initial gross investment of $10,000 made on 10/1/99 (com
mencement). Returns shown include the reinvestment of all dividends and reflect
fee waivers in effect; in the absence of fee waivers, performance would be
reduced. Past performance is not predictive of future results. Investment return
and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost.
The Merrill Lynch 1-5 Year Government Index is an unmanaged index of prices of
U.S. Treasury Notes with maturities of one to five years.
Unlike actual fund performance, performance of an index does not reflect any
expenses or transaction costs. A direct investment in an unmanaged index is not
possible. Additionally, unlike U.S. Treasury bonds and bills, the principal
value and investment return of the Fund are not guaranteed or insured by the
U.S. Government.
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<PAGE>
NORTHERN FUNDS Annual Report
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INTERMEDIATE TAX-EXEMPT FUND
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During the fiscal year, the Federal Reserve aggressively tightened monetary
policy in an effort to dampen the torrid growth in the economy and stem
inflationary concerns. This resulted in a rise in general interest rates all
along the tax-exempt yield curve.
Early in the year, we employed a barbell strategy using one- and ten-year
maturities. This helped us take advantage of the yield curve's relative
steepness. But, as the yield curve flattened during the year, we overweighted
five-year maturities. We also focused on finding relative value in the market,
buying premium-coupon issues in the 10- to 15-year maturity range as well as
issues with discount coupons that helped performance later in the year. In
addition, we slightly extended the Fund's duration during the year to coincide
with its new benchmark, the Lehman Brothers Mutual Fund Intermediate Municipal
Bond Index, a benchmark we believe more closely tracks the Fund's peer group.
The rising interest rate environment caused the Fund to produce a total return
of (0.14) percent for the year ended March 31, 2000, compared to a return of
0.90 percent for the Fund's index. The difference in returns was due to the
Fund's duration, which remained slightly shorter than the new index's duration
at year end, causing the Fund to miss some of the positive performance in the
municipal market during the final month of the fiscal year.
Going forward, we will continue to move the Fund toward a neutral duration
profile. New-issue supply in the municipal market is down considerably from last
year, which has caused credit spreads in the investment-grade market to
compress. As such, we will focus on higher-grade issues until we see a widening
in credit spreads.
Jane McCart
Portfolio Manager
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
NORTHERN INTERMEDIATE TAX-EXEMPT FUND VS. LEHMAN BROTHERS 5-YEAR MUNICIPAL BOND
INDEX AND LEHMAN BROTHERS MUTUAL FUND INTERMEDIATE MUNICIPAL BOND INDEX
FUND'S TOTAL RETURN
FOR THE PERIOD ENDED 3/31/00
------------------------------------------
ONE YEAR (0.14)%
AVERAGE ANNUAL FIVE YEAR 4.35%
AVERAGE ANNUAL
SINCE INCEPTION 4.36%
Lehman Bros
Lehman Bros. Mutual Fund
INTERMEDIATE 5-Year Intermediate
TAX-EXEMPT Municipal Bond Municipal Bond
FUND Index Index
--------------- ---------------- ---------------
4/1/94 $10,000 $10,000 $10,000
3/31/95 10,438 10,427 10,646
3/31/96 11,149 11,376 11,511
3/31/97 11,527 11,915 12,044
3/31/98 12,328 13,034 13,345
3/31/99 12,929 13,891 14,092
3/31/00 12,910 13,569 14,177
This chart assumes an initial gross investment of $10,000 made on 4/1/94 (com
mencement). Returns shown include the reinvestment of all dividends and reflect
fee waivers in effect; in the absence of fee waivers, performance would be
reduced. Past performance is not predictive of future results. Investment return
and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost. Income from the Fund may be subject to
federal alternative minimum tax, state and local taxes.
The Lehman Brothers 5-Year Municipal Bond Index includes investment-grade (Baa
or better) tax-exempt bonds with maturities of four to six years. The Index is
weighted according to market capitalization on a bond by bond basis, and it can
include only investable securities. To be included in the 5-Year Municipal Bond
Index, the original transaction size must have been greater than $50 million.
Each bond must have been issued since December 31, 1990 and have an outstanding
par value greater than $3 million, and a remaining maturity of at least one
year. Bonds with floating rates including derivative and residual interest
securities are excluded.
The Lehman Brothers Mutual Fund Intermediate Municipal Bond Index, an unmanaged
index of investment grade tax-exempt bonds with maturities of five to ten years,
is replacing the Lehman Brothers 5-Year Municipal Bond Index as the Intermediate
Tax-Exempt Fund's performance benchmark. The Lehman Brothers Mutual Fund
Intermediate Municipal Index includes municipal obligations with a wider range
of maturities and, therefore, is expected to be a better benchmark comparison of
the Fund's performance. The Index figures do not reflect any fees or expenses.
Unlike actual fund performance, performance of an index does not reflect any
expenses or transaction costs. A direct investment in an unmanaged index is not
possible.
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<PAGE>
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CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND
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During the past six months (the period since the Fund's inception), the Federal
Reserve took aggressive action to slow stronger-than-expected growth in the
economy and to stem potential inflationary concerns by raising the federal funds
rate 75 basis points (0.75 of a percentage point) in three installments. During
this period of rising rates, the Fund maintained a neutral duration to its
market benchmark.
Also during the past six months, the U.S. Treasury announced plans to reduce
issuance of debt and to initiate a bond buy-back of longer-dated Treasuries.
These events combined to invert the Treasury yield curve. Following suit, the
tax-exempt market also experienced a significant flattening in its term
structure. Anticipating this flattening, we had incorporated in the Fund a
barbell maturity structure by targeting the steepest parts of the California
municipal yield curve. Furthermore, as longer rates fell, Fund performance
benefited from an increased exposure to longer-intermediate, deep-discount
bonds.
These strategies resulted in the Fund slightly underperforming its benchmark
index for the period ended March 31, 2000. The Fund posted a total return of
2.37 percent for the period, while the index returned 2.47 percent.
Going forward, we plan to maintain the Fund's neutral duration, but we expect to
modify the Fund's maturity structure in response to a flatter interest rate
environment. We look to capitalize on California in-state demand by focusing on
retail-oriented inquiries as a source of funds. Our efforts to add incremental
yield through well-researched credit, sector, and structure decisions will
continue in the future.
Eric Boeckmann
Portfolio Manager
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
NORTHERN CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND VS. LEHMAN BROTHERS MUTUAL FUND
CALIFORNIA INTERMEDIATE TAX-EXEMPT INDEX
FUND'S TOTAL RETURN
FOR THE PERIOD ENDED 3/31/00
------------------------------------
CUMULATIVE SINCE INCEPTION 2.37%
Lehman Brothers
Mutual Fund
CALIFORNIA INTERMEDIATE California Intermediate
TAX-EXEMPT Tax-Exempt
FUND Index
---------------------- -----------------------
10/1/99 $10,000 $10,000
3/31/00 10,237 10,247
This chart assumes an initial gross investment of $10,000 made on 10/1/99 (com
mencement). Returns shown include the reinvestment of all dividends and reflect
fee waivers in effect; in the absence of fee waivers, performance would be
reduced. Past performance is not predictive of future results. Investment return
and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost. Income from the Fund may be subject to
federal alternative minimum tax, state and local taxes.
The Lehman Brothers Mutual Fund California Intermediate Tax-Exempt Index
includes Investment grade (Baa or better) tax-exempt California bonds with
maturities of five to ten years. To be included in the Index, the original
transaction size must have been greater than $50 million. Each bond must have
been issued after December 31, 1990 and have an outstanding par value greater
than $5 million.
Unlike actual fund performance, performance of an index does not reflect any
expenses or transaction costs. A direct investment in an unmanaged index is not
possible.
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<PAGE>
NORTHERN FUNDS Annual Report
--------------------------------------------------------------------------------
FLORIDA INTERMEDIATE TAX-EXEMPT FUND
--------------------------------------------------------------------------------
During the fiscal year, the Federal Reserve took aggressive action toward
quelling the torrid growth in the economy and stemming inflationary concerns by
raising the federal funds rate 125 basis points (1.25 percentage points) in five
installments. Additionally, the Treasury market experienced a substantial shift
in its yield curve from an upward slope to an inverted one. This was due to
perceived supply/demand imbalances in the 15-year and longer maturity sector. In
sympathy with the Treasury market, the Florida bond market also experienced a
flattening in its term structure. In anticipation of this flattening, we
positioned the Fund with a barbell structure of short and longer-term
securities, which enhanced Fund performance. We also made liberal purchases of
deep-discount securities, which aided performance.
The Fund posted a total return of 0.30 percent for the fiscal year ended March
31, 2000. The Fund underperformed its Florida benchmark, which returned 0.71
percent, primarily due to the Fund's longer relative duration in a period of
rising interest rates. Nevertheless, our focus on adding higher-yielding bonds
combined with the Fund's ability to take advantage of a change in Florida tax
law, which allows Florida mutual funds to hold up to 10 percent of their assets
in out-of-state names, aided Fund performance and helped mute some of the
negative impact of higher overall interest rates.
Going forward, we expect to maintain the Fund's current duration profile and
barbell maturity structure, which should allow the Fund to take advantage of the
remaining pockets of relative steepness within the Florida municipal yield
curve. Additionally, we will continue to make use of the favorable Florida tax
changes by purchasing higher-yielding, out-of-state names, up to the 10 percent
maximum, in an attempt to increase the Fund's overall yield profile.
Gregory Bell
Portfolio Manager
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
NORTHERN FLORIDA INTERMEDIATE TAX-EXEMPT FUND VS. LEHMAN BROTHERS MUTUAL FUND
FLORIDA INTERMEDIATE TAX-EXEMPT MUNICIPAL INDEX AND LEHMAN BROTHERS MUTUAL FUND
INTERMEDIATE MUNICIPAL BOND INDEX
FUND'S TOTAL RETURN
FOR THE PERIOD ENDED 3/31/00
-----------------------------------------
ONE YEAR 0.30%
AVERAGE ANNUAL
SINCE INCEPTION 4.59%
Lehman Bros. Lehman Bros.
Mutual Fund Mutual Fund
FLORIDA INTERMEDIATE Florida Intermediate Intermediate
TAX-EXEMPT Tax-Exempt Municipal
FUND Municipal Index Bond Index
------------------- -------------------- ------------
8/15/96 $10,000 $10,000 $10,000
3/31/97 10,263 10,228 10,196
3/31/98 11,136 11,096 11,164
3/31/99 11,736 11,743 11,831
3/31/00 11,778 11,819 11,902
This chart assumes an initial gross investment of $10,000 made on 8/15/96
(commencement). Returns shown include the reinvestment of all dividends and
reflect fee waivers in effect; in the absence of fee waivers, performance would
be reduced. Past performance is not predictive of future results. Investment
return and principal value will fluctuate, so that shares, when redeemed, may be
worth more or less than the original cost. Income from the Fund may be subject
to federal alternative minimum tax, state and local taxes.
The Lehman Brothers Mutual Fund Florida Intermediate Tax-Exempt Municipal Index
includes investment-grade (Baa or better) tax-exempt Florida bonds. To be
included in the Index, the original transaction size must have been greater than
$50 million. Each bond must have been issued since December 31, 1990 and have an
outstanding par value greater than $3 million, and a remaining maturity of at
least 1 year. Taxable municipal bonds, bonds with floating rates, derivatives,
and certificates of participation are excluded.
The Lehman Brothers Mutual Fund Intermediate Municipal Bond Index includes
eligible municipal bonds with maturities of five to ten years. Bonds eligible to
be included in this Index are investment-grade tax-exempt bonds (Baa or better),
with a fixed coupon rate, issued after December 31, 1990 as part of a
transaction of at least $50 million. They must also have an outstanding par
value greater than $3 million and a remaining maturity of at least one year.
Taxable municipal bonds, bonds with floating rates, derivatives, and
certificates of participation are excluded.
Unlike actual fund performance, performance of an index does not reflect any
expenses or transaction costs. A direct investment in an unmanaged index is not
possible.
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<PAGE>
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FIXED INCOME FUND
-------------------------------------------------------------------------------
With the U.S. economy continuing to grow vigorously, the Federal Reserve raised
interest rates five times during the past fiscal year for a total short-term
rate increase of 125 basis points (1.25 percentage points). Longer-term Treasury
securities did not move in nearly the same fashion. Certainly, the market was
responding to the Fed's proactive inflation-fighting stance when it moved these
yields merely 25 basis points higher. More important to this sector of the
market, though, was the announcement and implementation by the Treasury
Department to buy back outstanding debt, mostly in longer-maturity securities.
This caused bond yields from 2- to 30-year maturities to invert by nearly 125
basis points, such that investors actually received lower yields for extending
maturity.
The turbulence in the Treasury curve wreaked havoc on all non-Treasury sectors.
While non-Treasury sectors appear attractive relative to Treasuries based on
historical relationships, in the near-term the performance of such sectors may
be more a function of the shape of the Treasury curve rather than fundamentals
within those markets.
The Fund posted a total return of 0.57 percent for the fiscal year ended March
31, 2000, compared to 1.87 percent for the Lehman Brothers Aggregate Bond Index.
We maintained a fairly consistent neutral-duration stance throughout the year.
We also maintained an overweighted position in non-Treasury spread securities, a
strategy that proved effective until the last quarter, when the year-to-date
gains in these holdings were reduced. Nonetheless, these near-term losses have
not changed our support for spread securities. Interest rates are likely to
increase, and credit markets are likely to calm as further details of the
Treasury buy-back plan are released. As such, our long-term strategy should
benefit the Fund.
Steven Schafer
Portfolio Manager
GROWTH OF A HYPOTHELTICAL $10,000 INVESTMENT
NORTHERN FIXED INCOME FUND VS. LEHMAN BROTHERS GOVERNMENT/CORPORATE BOND INDEX
AND LEHMAN BROTHERS AGGREGATE BOND INDEX
FUND'S TOTAL RETURN
FOR THE PERIOD ENDED 3/31/00
------------------------------------
ONE YEAR 0.57%
AVERAGE ANNUAL FIVE YEAR 6.60%
AVERAGE ANNUAL
SINCE INCEPTION 6.20%
Lehman Bros. Lehman Bros.
FIXED INCOME Gov't./Corp. Aggregate
FUND Bond Index Bond Index
------------ ------------ ------------
4/1/94 $10,000 $10,000 $10,000
3/31/95 10,416 10,459 10,499
3/31/96 11,581 11,601 11,632
3/31/97 12,112 12,118 12,203
3/31/98 13,553 12,620 13,666
3/31/99 14,255 14,512 14,553
3/31/00 14,336 14,759 14,825
This chart assumes an initial gross investment of $10,000 made on 4/1/94 (com
mencement). Returns shown include the reinvestment of all dividends and reflect
fee waivers in effect; in the absence of fee waivers, performance would be
reduced. Past performance is not predictive of future results. Investment return
and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost.
The Lehman Brothers Government/Corporate Bond Index includes all public
obligations of the U.S. Treasury, excluding flower bonds, targeted investor
notes (TINs), and state and local government series (SLGs) bonds; all publicly
issued debt of U.S. government agencies and quasi-federal corporations, and
corporate or foreign debt guaranteed by the U.S. government; all publicly
issued, fixed rate, nonconvertible investment-grade, dollar-denominated, SEC-
registered corporate debt. The Index sectors are industrial, finance, utility,
and Yankee. To be included in the Index, the bonds must meet all of the
following criteria: must have at least one year to maturity; have at least $100
million par amount outstanding; must be rated investment-grade (Baa3 or better)
by Moody's Investors Service (unless it is a U.S. government or agency security,
which are generally not formally rated); must be fixed-rate, although it can
carry a coupon that steps up or changes according to a predetermined schedule.
The Lehman Brothers Aggregate Bond Index, an unmanaged index of prices of U.S.
dollar-denominated investment grade fixed income securities with remaining
maturities of one year and longer, is replacing the Lehman Brothers Government/
Corporate Bond Index as the Fund's performance benchmark. The Lehman Brothers
Aggregate Bond Index is a broader measure of the U.S. dollar-denominated
investment grade fixed income market and includes government and corporate
securities, agency mortgage pass-through securities, commercial mortgage-backed
securities, and asset-backed securities. It is therefore expected to be a better
benchmark comparison of the Fund's performance.
Unlike actual fund performance, performance of an index does not reflect any
expenses or transaction costs. A direct investment in an unmanaged index is not
possible.
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<PAGE>
NORTHERN FUNDS Annual Report
-------------------------------------------------------------------------------
TAX-EXEMPT FUND
-------------------------------------------------------------------------------
During the past fiscal year, interest rates rose across the entire maturity
spectrum. In an effort to slow domestic economic growth and take precaution
against inflation, the Federal Reserve raised interest rates five times during
the fiscal year, for a total of 125 basis points (1.25 percentage points). The
strength of the economy and its resulting increase in the government budget
surplus led to a decision by the Treasury Department not only to reduce future
issuance of bonds, but to buy back outstanding issues_the first program of its
kind in 70 years.
In this climate of rising rates, we targeted the Fund's maturity structure as an
area where we could add relative value. To maintain liquidity while capturing
the benefits of a steep municipal yield curve, we employed a barbell maturity
structure of short and longer-term securities. Later in the fiscal year, the
Fund's total return also benefited from this strategy as the curve flattened
dramatically during the last three months. We also added larger coupon bonds as
part of our strategy to cushion the effects of rising interest rates.
Nevertheless, the rising rate environment contributed to a slightly negative
return for the Fund. For the year ended March 31, 2000, the Fund offered a total
return of (1.50) percent, compared to (0.08) percent for the benchmark index. We
maintained a longer average maturity than the benchmark's, which contributed to
the Fund's relative underperformance.
Looking ahead, we expect the Federal Reserve to remain vigilant in its efforts
to keep inflation in check. With a neutral stance toward interest rates, we will
continue to focus on the yield curve, security structure, and sector and credit
selections to make value-added management decisions. Similar to the U.S.
Treasury market, the potential for a reduced supply of municipal bonds may
provide attractive opportunities for investors.
Tim McGregor
Portfolio Manager
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
NORTHERN TAX-EXEMPT FUND VS. LEHMAN BROTHERS MUNICIPAL BOND INDEX
FUND'S TOTAL RETURN
FOR THE PERIOD ENDED 3/31/00
-----------------------------------------
ONE YEAR (1.50)%
AVERAGE ANNUAL FIVE YEAR 5.23%
AVERAGE ANNUAL
SINCE INCEPTION 5.33%
Lehman Bros.
TAX-EXEMPT Municipal Bond
FUND Index
---------- --------------
4/1/94 $10,000 $10,000
3/31/95 10,578 10,746
3/31/96 11,896 11,647
3/31/97 13,132 12,284
3/31/98 13,850 13,600
3/31/99 13,850 14,444
3/31/00 13,642 14,432
This chart assumes an initial gross investment of $10,000 made on 4/1/94 (com
mencement). Returns shown include the reinvestment of all dividends and reflect
fee waivers in effect; in the absence of fee waivers, performance would be
reduced. Past performance is not predictive of future results. Investment return
and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost. Income from the Fund may be subject to
federal alternative minimum tax, state and local taxes.
The Lehman Brothers Municipal Bond Index includes investment-grade (Baa or
better) tax-exempt bonds. The Index is weighted according to market
capitalization. To be included in the Index, the original transaction size must
have been been greater than $50 million. Each bond must have been issued since
December 31, 1990 and have an outstanding par value greater than $3 million, and
a remaining maturity of at least one year. Taxable municipal bonds, bonds with
floating rates, derivatives, and certificates of participation are excluded.
Unlike actual fund performance, performance of an index does not reflect any
expenses or transaction costs. A direct investment in an unmanaged index is not
possible.
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<PAGE>
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ARIZONA TAX-EXEMPT FUND
-------------------------------------------------------------------------------
During the past six months (the period since the Fund's inception), the Federal
Reserve took aggressive action to slow stronger-than-expected growth in the
economy and to stem potential inflationary concerns by raising the federal funds
rate 75 basis points (0.75 of a percentage point) in three installments. In this
rising rate environment, the Fund maintained a neutral duration to its market
benchmark.
Also during the past six months, the U.S. Treasury announced plans for reduced
issuance of debt and initiated a buy-back of longer-dated Treasuries. These
events combined to produce an inversion of the Treasury yield curve. In sympathy
with the Treasury market, the tax-exempt market also experienced a significant
flattening in its term structure. Shareholders benefited from this occurrence,
as we anticipated that this flattening would occur. In preparation, we
incorporated a barbell maturity structure by targeting the steepest parts of the
Arizona yield curve. Furthermore as longer rates fell, Fund performance
benefited from an increased exposure to longer-dated, deep-discount bonds.
These strategies helped the Fund generate a total return of 2.43 percent for the
six months ended March 31, 2000, and slightly outperform its benchmark index,
which returned 2.08 percent.
Looking ahead, we expect to maintain the Fund's neutral duration, but we may
modify the Fund's maturity structure in response to a flatter interest rate
environment. We hope to capitalize on Arizona in-state demand by focusing on
retail-oriented inquiries as a source of funds. Our efforts to add incremental
yield through well-researched credit, sector, and structure decisions will
continue in the future.
Eric Boeckmann
Portfolio Manager
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
NORTHERN ARIZONA TAX-EXEMPT FUND VS. LEHMAN BROTHERS ARIZONA MUNICIPAL BOND
INDEX
FUND'S TOTAL RETURN
FOR THE PERIOD ENDED 3/31/00
---------------------------------------
CUMULATIVE SINCE INCEPTION 2.43%
ARIZONA Lehman Bros.
TAX-EXEMPT Arizona Municipal
FUND Bond Index
---------- -----------------
10/1/99 $10,000 $10,000
3/31/00 10,243 10,208
This chart assumes an initial gross investment of $10,000 made on 10/1/99 (com
mencement). Returns shown include the reinvestment of all dividends and reflect
fee waivers in effect; in the absence of fee waivers, performance would be
reduced. Past performance is not predictive of future results. Investment return
and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost. Income from the Fund may be subject to
federal alternative minimum tax, state and local taxes.
The Lehman Brothers Arizona Municipal Bond Index includes investment grade (Baa
or better) tax-exempt Arizona bonds with a remaining maturity of at least one
year. To be included in the Index, the original transaction size must have been
greater than $50 million. Each bond must have been issued after December 31,
1990 and have an outstanding par value greater than $5 million.
Unlike actual fund performance, performance of an index does not reflect any
expenses or transaction costs. A direct investment in an unmanaged index is not
possible.
--------------------------------------------------------------------------------
<PAGE>
NORTHERN FUNDS Annual Report
-------------------------------------------------------------------------------
CALIFORNIA TAX-EXEMPT FUND
-------------------------------------------------------------------------------
During the fiscal year, the Federal Reserve took aggressive action to slow
stronger-than-expected economic growth and to stem potential inflationary
concerns. The federal funds rate increased 125 basis points (1.25 percentage
points) in five 25-point installments.
In this rising interest rate environment, the Fund maintained a neutral duration
to its market benchmark. As a result of the rate situation, the Fund generated a
total return of (0.93) percent for the fiscal year ended March 31, 2000,
slightly underperforming its California benchmark, which returned (0.32) percent
for the period.
Another significant event during the year was the U.S. Treasury Department's
announcement of plans to reduce debt issuance and to initiate a bond buy-back of
longer-dated Treasuries. These events combined to produce an inversion of the
Treasury yield curve. In sympathy with the Treasury market, the tax-exempt
market also experienced a significant flattening in its term structure. In
anticipation of a flattening, we had incorporated a barbell maturity structure
by targeting the steepest parts of the California yield curve_a strategy that
enhanced Fund performance. Furthermore, as longer rates fell, Fund performance
benefited from an increased exposure to longer-dated, deep-discount bonds.
Going forward, we plan to maintain a neutral duration, but we will look to
modify the Fund's maturity structure in response to a flatter interest rate
environment. We also hope to capitalize on California in-state demand by
focusing on retail-oriented inquiries as a source of funds. Our efforts to add
incremental yield through well-researched credit, sector, and structure
decisions will continue.
Eric Boeckmann
Portfolio Manager
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
NORTHERN CALIFORNIA TAX-EXEMPT FUND VS. LEHMAN BROTHERS MUTUAL FUND MUNICIPAL
BOND INDEX AND LEHMAN BROTHERS MUTUAL FUND CALIFORNIA MUNICIPAL INDEX
FUND'S TOTAL RETURN
FOR THE PERIOD ENDED 3/31/00
------------------------------------
ONE YEAR (0.93)%
AVERAGE ANNUAL
SINCE INCEPTION 5.63%
Lehman Bros. Lehman Bros.
CALIFORNIA Mutual Fund Mutual Fund
TAX-EXEMPT Municipal Bond California
FUND Index Municipal Index
---------- -------------- ----------------
4/8/97 $10,000 $10,000 $10,000
3/31/98 11,186 10,915 11,136
3/31/99 11,880 11,567 11,900
3/31/00 11,671 11,770 11,862
This chart assumes an initial gross investment of $10,000 made on 4/8/97 (com
mencement). Returns shown include the reinvestment of all dividends and reflect
fee waivers in effect; in the absence of fee waivers, performance would be
reduced. Past performance is not predictive of future results. Investment return
and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost. Income from the Fund may be subject to
federal alternative minimum tax, state and local taxes.
The Lehman Brothers Mutual Fund Intermediate Municipal Bond Index includes
eligible municipal bonds with maturities of five to ten years. Bonds eligible to
be included in this Index are investment-grade tax-exempt bonds (Baa or better),
with a fixed coupon rate, issued after December 31, 1990 as part of a
transaction of at least $50 million. They must also have an outstanding par
value greater than $3 million and a remaining maturity of at least one year.
Taxable municipal bonds, bonds with floating rates, derivatives, and
certificates of participation are excluded.
The Lehman Brothers Mutual Fund California Municipal Index includes investment
grade (Baa or better) tax-exempt California bonds. The Index is rule based and
market value weighted. To be included in the Index, the original transaction
size must have been greater than $50 million. Each bond must have been issued
since December 31, 1990 and have an outstanding par value greater than $3
million, and a remaining maturity of at least 1 year. Taxable municipal bonds,
bonds with floating rates, derivatives, and certificates of participation are
excluded.
Unlike actual fund performance, performance of an index does not reflect any
expenses or transaction costs. A direct investment in an unmanaged index is not
possible.
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<PAGE>
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INTERNATIONAL FIXED INCOME FUND
------------------------------------------------------------------------------
Global growth rebounded strongly in 1999. But, as inflationary fears began to
build, the U.S. Federal Reserve, the European Central Bank and most other
central banks throughout the developed world raised interest rates. Only the
Bank of Japan kept monetary policy unchanged. As a result, yen bonds were
relatively immune from the global bond market correction sparked by stronger
growth and tighter money. Strong Foreign Direct Investment outflows kept the
euro under downward pressure, while the yen benefited from higher-than-expected
economic growth, rising business confidence and strong overseas buying of
Japanese equities.
For the fiscal year ended March 31, 2000, the Fund posted a total return of
(5.11) percent, compared to (2.50) percent for its benchmark index. The Fund
benefited from a lower duration and below-benchmark euro exposure. But, we also
overweighted the dollar against the yen during the second and third quarters,
when the yen's gains were the sharpest. This was the main contributor to the
Fund's underperformance.
We restructured the Fund during the fourth quarter, further reducing European
bond exposure while increasing Japanese duration and gradually adjusting our yen
exposure toward more neutral levels. These moves have contributed to better
relative performance (before fees) in recent months.
Looking ahead, we anticipate a near-term extension of current market trends,
with modest yield rises in Europe and the U.K. We expect to continue our policy
of adding to holdings of European credits. We believe that pressure will
intensify on the yen bond markets as growth starts to surprise on the upside. As
such, we plan to remain significantly underweighted in yen bonds. The euro may
be close to a turning point against the dollar, and we will be looking for
opportunities to increase our exposure to the euro.
Guy Williams
Portfolio Manager
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
NORTHERN INTERNATIONAL FIXED INCOME FUND VS. J.P. MORGAN INTERNATIONAL
GOVERNMENT BOND INDEX AND J.P. MORGAN GOVERNMENT BOND INDEX GLOBAL
FUND'S TOTAL RETURN
FOR THE PERIOD ENDED 3/31/00
-----------------------------------------
ONE YEAR (5.11)%
AVERAGE ANNUAL FIVE YEAR 3.15%
AVERAGE ANNUAL
SINCE INCEPTION 4.70%
J.P. Morgan J.P. Morgan
INTERNATIONAL International Government
FIXED INCOME Government Bond Index
FUND Bond Index Global
------------- ------------- -----------
4/1/94 $10,000 $10,000 $10,000
3/31/95 11,277 11,827 10,361
3/31/96 11,936 12,348 11,133
3/31/97 12,101 12,452 12,061
3/31/98 12,659 12,807 13,457
3/31/99 13,885 14,305 14,519
3/31/00 13,175 13,947 14,626
This chart assumes an initial gross investment of $10,000 made on 4/1/94 (com
mencement). Returns shown include the reinvestment of all dividends and reflect
fee waivers in effect; in the absence of fee waivers, performance would be
reduced. Past performance is not predictive of future results. Investment return
and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost.
The J.P. Morgan International Government Bond Index is a daily, market
capitalization-weighted international fixed income total return index consisting
of 12 countries: Australia, Belgium, Canada, France, Germany, Japan,
Netherlands, the United Kingdom, Italy, Spain, Denmark and Sweden. The
constituent indices are fully invested. The Index is represented in U.S.
dollars. Each component is converted into U.S. dollars and then aggregated.
The J.P. Morgan Government Bond Index Global, an unmanaged index of traded
government fixed income securities which cannot be purchased by international
investors, is replacing the J.P. Morgan International Bond Index as the Fund's
performance benchmark in connection with pending revisions to the Fund's
investment policies that will be effective June 30, 2000. The J.P. Morgan
Government Bond Index Global is a broader measure of the global fixed income
market and includes government securities from thirteen developed countries,
including the United States. It is therefore expected to be a better benchmark
comparison of the Fund's performance.
Unlike actual fund performance, performance of an index does not reflect any
expenses or transaction costs. A direct investment in an unmanaged index is not
possible.
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INVESTORS ARE REMINDED THAT, WHILE INVESTING GLOBALLY CAN BE REWARDING,
INVESTMENTS IN FOREIGN SECURITIES INVOLVE CERTAIN RISKS AND CONSIDERATIONS IN
ADDITION TO THOSE INHERENT WITH INVESTING IN U.S. COMPANIES, SUCH AS CURRENCY
FLUCTUATIONS AND POLITICAL INSTABILITY.
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<PAGE>
NORTHERN FUNDS Annual Report
------------------------------------------------------------------------------
HIGH YIELD MUNICIPAL FUND
------------------------------------------------------------------------------
During the fiscal year, the Federal Reserve's aggressive tightening of monetary
policy resulted in an increase in general interest rates all along the tax-
exempt yield curve, which led to negative returns in the municipal high-yield
market. Credit spreads during the fiscal year widened considerably from the
previous period due to supply/demand factors and signs of credit deterioration
in certain sectors. The health care sector was especially affected. Cutbacks in
Medicare reimbursements weakened the financial positions of hospitals, which
resulted in a series of rating downgrades.
We attempted to increase the income component of the Fund by buying higher-
coupon bonds and steering away from deteriorating sectors. This was difficult to
accomplish,though, as the low-interest-rate, narrow-credit-spread environment
we experienced prior to 1999 limited the availability of high-coupon bonds that
meet our quality standards. We also lowered the Fund's duration in an effort to
mute volatility, and we reduced exposure to the health care sector, focusing
instead on areas we felt had better prospects.
With a (5.40) percent total return for the fiscal year ended March 31, 2000, the
Fund underperformed its benchmark, which returned (1.81) percent. This was due
to a lower-coupon structure and the resultant longer duration of the Fund. As
interest rates increased, this composition hurt Fund performance. The Fund's
lower-coupon structure is due to the low-interest-rate, tight-credit-spread
environment in place when the Fund was launched.
During the next six months we expect some sectors of the high-yield market to
recover, as supply in the municipal market is down significantly from last year.
Also, interest rates have recovered from their highs, and we should see better
relative performance. We will continue to try to increase the Fund's coupon
structure and look for value in sectors that are attractive from a credit
perspective.
Jane McCart
Portfolio Manager
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
NORTHERN HIGH YIELD MUNICIPAL FUND VS. LEHMAN BROTHERS MUNICIPAL NON-INVESTMENT
GRADE BOND INDEX
FUND'S TOTAL RETURN
FOR THE PERIOD ENDED 3/31/00
-------------------------------------------------------------------------------
ONE YEAR (5.40)%
AVERAGE ANNUAL
SINCE INCEPTION (3.95)%
Lehman Bros.
Municipal
Non-Investment
HIGH YIELD Grade
MUNICIPAL FUND Bond Index
--------------- -------------
12/31/98 10,000 10,000
3/31/99 10,057 10,142
3/31/00 9,514 9,958
This chart assumes an initial gross investment of $10,000 made on 12/31/98 (com
mencement). Returns shown include the reinvestment of all dividends and reflect
fee waivers in effect; in the absence of fee waivers, performance would be
reduced. Past performance is not predictive of future results. Investment return
and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost. Income from the Fund may be subject to
federal alternative minimum tax, state and local taxes.
The Lehman Brothers Municipal Non-Investment Grade Bond Index includes issues
which have a maximum credit rating of BA1; are issued as part of a deal of at
least $20 million; have an amount outstanding of at least $3 million; have a
maturity of at least one year; and have been issued after December 31, 1990.
Unlike actual fund performance, performance of an index does not reflect any
expenses or transaction costs. A direct investment in an unmanaged index is not
possible.
------------------------------------------------------------------------------
------------------------------------------------------------------------------
THIS FUND INVESTS IN BELOW INVESTMENT-GRADE DEBT OBLIGATIONS, COMMONLY KNOWN
AS "JUNK BONDS." WHILE OFFERING HIGHER CURRENT YIELDS, THESE SECURITIES
GENERALLY ARE CONSIDERED SPECULATIVE AND ARE SUBJECT TO GREATER RISKS THAN
HIGHER-RATED BONDS.
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<PAGE>
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HIGH YIELD FIXED INCOME FUND
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Without the luster of high-flying growth stocks, and due to concerns of rising
interest rates and higher-than-average default rates, cash flow to the high-
yield asset category was predominately negative during the fiscal year. With
little to no momentum propelling security valuations higher, significant selling
pressure ensued, especially as new supply was introduced to the market. This
imbalance resulted in marginal returns for high-yield investors.
The strong volatility in the marketplace required us to more nimbly balance the
Fund's positions between the higher-return, lower-quality spectrum of the high-
yield market with the better-quality, lower-coupon area. We maintained a slight
emphasis on specific sectors, including emerging telecommunications, technology
and gaming industries, that we continue to believe have strong credit
fundamentals and solid technical characteristics.
The Fund's total return of 0.80 percent for the fiscal year ended March 31,
2000, was strong relative to the benchmark index's return of (1.82) percent. The
Fund's higher return can be attributed to strong performance in
telecommunications and technology, as well as in some of the "old economy"
industries such as chemicals, energy services, gaming and transportation.
With the average high-yield security at yield levels not seen for any extended
period of time since the last recession, we remain optimistic that high-yield
bonds are poised for a period of outperformance, relative to other fixed income
vehicles. Over the next year, we expect to see strong credit fundamentals
domestically and in select developed countries, as economic conditions continue
to be robust and individual companies continue to focus on improving their
balance sheets. We remain opportunistic in our security selection, with a slight
bent toward out-of-favor, higher-quality paper. We also favor lower-tiered
telecommunications holdings, which we believe have strong positive return
potential.
Eric Misenheimer
Portfolio Manager
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
NORTHERN HIGH YIELD FIXED INCOME FUND VS. LEHMAN BROTHERS HIGH YIELD CORPORATE
BOND INDEX
FUND'S TOTAL RETURN
FOR THE PERIOD ENDED 3/31/00
-------------------------------------
ONE YEAR 0.80%
AVERAGE ANNUAL
SINCE INCEPTION 2.27%
Lehman Brothers
HIGH YIELD High Yield
FIXED INCOME Corporate
FUND Bond Index
------------ ---------------
12/31/98 $10,000 $10,000
3/31/99 10,206 10,185
3/31/00 10,288 10,000
This chart assumes an initial gross investment of $10,000 made on 12/31/98 (com
mencement). Returns shown include the reinvestment of all dividends and reflect
fee waivers in effect; in the absence of fee waivers, performance would be
reduced. Past performance is not predictive of future results. Investment return
and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost.
The Lehman Brothers High Yield Corporate Bond Index includes bonds rated Ba1 or
lower by Moody's, or BB+ or lower by S&P. Some unrated bonds are included in the
Index. To be eligible, the unrated bonds must have previously held a high-yield
rating or have been associated with a high-yield issuer, and must trade
accordingly. The bonds must be dollar-denominated, nonconvertible, have at least
one year remaining to maturity, and an outstanding par value of at least $100
million. Pay-in-kind (PIK) bonds, Euro-bonds, and debt issues from countries
designated as emerging markets are excluded, but Yankee and global bonds
(registered with the SEC) of issuers in non-emerging countries are included.
Original issue zeroes and step-up coupon structures are also included.
Unlike actual fund performance, performance of an index does not reflect any
expenses or transaction costs. A direct investment in an unmanaged index is not
possible.
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THIS FUND INVESTS IN BELOW INVESTMENT-GRADE DEBT OBLIGATIONS, COMMONLY KNOWN
AS "JUNK BONDS." WHILE OFFERING HIGHER CURRENT YIELDS, THESE SECURITIES
GENERALLY ARE CONSIDERED SPECULATIVE AND ARE SUBJECT TO GREATER RISKS THAN
HIGHER-RATED BONDS.
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<PAGE>
NORTHERN FUNDS Annual Report
-------------------------------------------------------------------------------
INCOME EQUITY FUND
-------------------------------------------------------------------------------
"Just because I don't understand it, doesn't make it a good investment!" That's
how one portfolio manager reportedly expressed his frustration with last year's
techno-centric market. We know how he feels, although there were many times in
the year that it seemed understanding was a hindrance to good investment
performance. And, with the greatest returns coming from stocks selling at high
double-digit to triple-digit multiples, any strict adherence to traditional
value measures was also an impediment to success.
The Fund posted a total return of 19.10 percent for the fiscal year ended March
31, 2000, slightly outpacing its benchmark index, which returned 18.84 percent.
Two strategies that worked well for the Fund in this volatile investment climate
were to decrease the average size of holdings and to increase the invested cash
weighting.
The Fund is limited to no more than 35 percent in below-investment-grade
convertible issues. For most of the year, we also were restricted from buying
any issues rated below "single B" or the equivalent. This was frustrating at
times, but perhaps prevented us from participating too widely in the extreme
gyrations of the Internet-related sectors.
We are late in an extended economic cycle, with the Federal Reserve trying to
slow economic growth. From a historical perspective, this is a high-risk period.
Convertible securities are designed to give up some of the upside potential of
the underlying common stock, while reducing to a greater extent the downside
risk. In the months ahead, we will attempt to take full advantage of this
disparity.
Theodore Southworth
Portfolio Manager
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
NORTHERN INCOME EQUITY FUND VS. MERRILL LYNCH INVESTMENT GRADE CONVERTIBLE BOND
INDEX AND MERRILL LYNCH ALL U.S. CONVERTIBLES INDEX
FUND'S TOTAL RETURN
FOR THE PERIOD ENDED 3/31/00
----------------------------------------
ONE YEAR 19.10%
AVERAGE ANNUAL FIVE YEAR 16.69%
AVERAGE ANNUAL
SINCE INCEPTION 14.15%
Merrill Lynch Merrill Lynch
Investment Grade All U.S.
INCOME EQUITY Convertible Convertibles
FUND Bond Index Index
------------- ---------------- -------------
4/1/94 $10,000 $10,000 $10,000
3/31/95 10,221 10,310 10,325
3/31/96 12,307 13,142 12,853
3/31/97 14,082 14,261 14,191
3/31/98 18,447 17,933 18,367
3/31/99 18,570 18,981 19,428
3/31/00 22,117 22,557 27,828
This chart assumes an initial gross investment of $10,000 made on 4/1/94 (com
mencement). Returns shown include the reinvestment of all dividends and reflect
fee waivers in effect; in the absence of fee waivers, performance would be
reduced. Past performance is not predictive of future results. Investment return
and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost.
The Merrill Lynch Investment Grade Convertible Bond Index consists of all con
vertible bonds and preferreds (domestic and Euro) rated AAA to BBB3 with at
least $2.5 million par value outstanding per issue.
The Merrill Lynch All U.S. Convertibles Index, an unmanaged index of securities
which cannot be purchased by investors, is replacing the Merrill Lynch
Investment Grade Convertible Bond Index as the Fund's performance benchmark. The
Merrill Lynch All U.S. Convertibles Index is a broader measure of the
convertibles market and includes securities from all investment grades. It is
therefore expected to provide a better benchmark comparison of the Fund's
performance.
Unlike actual fund performance, performance of an index does not reflect any
expenses or transaction costs. A direct investment in an unmanaged index is not
possible.
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<PAGE>
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STOCK INDEX FUND
-------------------------------------------------------------------------------
For the fiscal year ended March 31, 2000, large-capitalization stocks, as
represented by the S&P 500/R Index, offered a total return of 17.93 percent.
Much of the index's performance during the year was due to strong returns from
the technology and capital goods sectors, which helped to offset the negative
returns from the health care and consumer sectors.
While large-cap stocks offered another year of solid returns, they lost their
long-standing leadership position among domestic stocks. Small-capitalization
stocks, as measured by the Russell 2000 Index, significantly outperformed the
S&P 500/R Index with a total return of 37.29 percent for the year.
The Fund is passively managed to track the risk and return characteristics of
the S&P 500/R Index. There were 46 additions and deletions to the Index during
the 12-month period, all of which were incorporated into the Fund. Notable
additions to the Index included Qualcomm and Yahoo!, Inc.<F1>
As designed, the Fund's one-year total return closely tracked that of the Index.
The slight difference in returns primarily was due to expenses charged to the
Fund and not to the Index; the Fund's restriction from holding common stock of
Northern Trust Corporation, an Index holding; and the inability to invest cash
admissions until the following morning.
Going forward, we will continue to follow a passive strategy designed to provide
returns that closely track those of the S&P 500/R Index.
<F1> As of 3/31/00, Qualcomm accounted for 0.86 percent and Yahoo!, Inc. 0.70
percent of the Fund's portfolio.
Lucy Quintana
Portfolio Manager
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
NORTHERN STOCK INDEX FUND VS. S&P 500/R INDEX
FUND'S TOTAL RETURN
FOR THE PERIOD ENDED 3/31/00
---------------------------------------------
ONE YEAR 17.27%
AVERAGE ANNUAL
SINCE INCEPTION 25.41%
STOCK INDEX S&P 500/R
FUND Index
----------- ----------
10/7/96 $10,000 $10,000
3/31/97 10,821 10,867
3/31/98 15,919 16,084
3/31/99 18,749 19,059
3/31/00 21,987 22,476
This chart assumes an initial gross investment of $10,000 made on 10/7/96 (com
mencement). Returns shown include the reinvestment of all dividends and reflect
fee waivers in effect; in the absence of fee waivers, performance would be
reduced. Past performance is not predictive of future results. Investment return
and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost.
The S&P 500/R Index consists of 500 stocks chosen for market size, liquidity,
and industry group representation. It is a market-value weighted index, with
each of the stock's weight in the Index proportionate to its market value. The
"500" is one of the most widely used benchmarks of U.S. equity performance.
Unlike actual fund performance, performance of an index does not reflect any
expenses or transaction costs. A direct investment in an unmanaged index is not
possible.
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THE STOCK INDEX FUND IS NOT SPONSORED, ENDORSED, SOLD OR PROMOTED BY STANDARD
& POOR'S, NOR DOES STANDARD & POOR'S GUARANTEE THE ACCURACY AND/OR
COMPLETENESS OF THE S&P 500/R COMPOSITE STOCK INDEX OR ANY DATA INCLUDED
THEREIN. STANDARD & POOR'S MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE
RESULTS TO BE OBTAINED BY THE FUND, OWNERS OF THE FUND, ANY PERSON OR ANY
ENTITY FROM THE USE OF THE S&P 500/R OR ANY DATA INCLUDED THEREIN. STANDARD &
POOR'S MAKES NO EXPRESS OR IMPLIED WARRANTIES AND EXPRESSLY DISCLAIMS ALL SUCH
WARRANTIES OF MERCHANTABILITY OF FITNESS FOR A PARTICULAR PURPOSE FOR USE WITH
RESPECT TO THE S&P 500/R OR ANY DATA INCLUDED THEREIN.
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<PAGE>
NORTHERN FUNDS Annual Report
--------------------------------------------------------------------------------
GROWTH EQUITY FUND
--------------------------------------------------------------------------------
The broad stock market, as measured by the S&P 500/R Index, posted another year
of double-digit returns. Equally as amazing was the continued divergence between
growth issues and their value counterparts. Once again, growth stocks
significantly outperformed value stocks, continuing an unprecedented trend.
For the fiscal year ended March 31, 2000, the Fund's total return of 27.60
percent considerably exceeded the benchmark's return of 17.93 percent. Several
factors contributed to this stronger performance. First, as the year began, we
reduced the Fund's emphasis on very large capitalization stocks, focusing
instead on companies at the lower end of the large-capitalization spectrum. In
general, these companies offered stronger performance than the mega-cap growth
companies. Also, the Fund's technology holdings performed well, as we de-
emphasized personal computer-centric companies in favor of telecommunications
and Internet backbone-related issues. These securities were among the market's
favorite investments during the past year. Finally, several of our stock
selections outside the technology sector performed very well.
Looking ahead, the level of uncertainty has increased, with respect to Federal
Reserve policy and the direction of the economy, and consequently corporate
profitability. This, coupled with high equity valuations, especially in certain
technology pockets, has caused us to modestly reduce the Fund's risk profile and
move back into those issues with high earnings visibility and a high degree of
earnings consistency. These include consumer staples, selected retailers and
pharmaceuticals.
John Zielinski
Portfolio Manager
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
NORTHERN GROWTH EQUITY FUND VS. S&P 500/R INDEX
FUND'S TOTAL RETURN
FOR THE PERIOD ENDED 3/31/00
ONE YEAR 27.60%
AVERAGE ANNUAL FIVE YEAR 26.97%
AVERAGE ANNUAL
SINCE INCEPTION 23.38%
GROWTH EQUITY S&P 500/R
FUND Index
------------- ---------
4/1/94 $10,000 $10,000
3/31/95 10,690 11,559
3/31/96 13,376 15,271
3/31/97 14,944 18,303
3/31/98 22,126 27,088
3/31/99 27,596 32,098
3/31/00 35,255 37,853
This chart assumes an initial gross investment of $10,000 made on 4/1/94 (com
mencement). Returns shown include the reinvestment of all dividends and reflect
fee waivers in effect; in the absence of fee waivers, performance would be
reduced. Past performance is not predictive of future results. Investment return
and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost.
The S&P 500/R Index consists of 500 stocks chosen for market size, liquidity,
and industry group representation. It is a market-value weighted index, with
each of the stock's weight in the Index proportionate to its market value. The
"500" is one of the most widely used benchmarks of U.S. equity performance.
Unlike actual fund performance, performance of an index does not reflect any
expenses or transaction costs. A direct investment in an unmanaged index is not
possible.
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<PAGE>
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SELECT EQUITY FUND
-------------------------------------------------------------------------------
What a wonderful time to be a growth stock investor! Several trends converged
during the fiscal year ended March 31, 2000, to support a rise in the major
stock market averages and a 59.78 percent total return for the Fund. The Fund's
return was well ahead of the benchmark's return of 17.93 percent, primarily due
to the Fund's overweighting in technology and to rising interest rates, which
caused us to lower the Fund's exposure to underperforming, interest rate-
sensitive sectors.
Revenue and earnings trends for most technology companies were strong throughout
the year. Because we favor companies with strong revenue and earnings
characteristics, we held a large portion of the Fund's assets in technology
stocks. We significantly increased exposure last fall, as concerns over the Y2K
computer bug appeared to be overblown.
Rising interest rates throughout the year depressed the performance of many
stocks. Technology stocks were the exception, though, because of their strong
business trends. Our stock selection techniques, which combine stock price
performance as well as business trends, caused us to reallocate assets out of
interest rate-sensitive sectors, such as capital goods and financials, and into
technology as the year progressed.
Looking ahead, the stocks of companies with superior growth prospects should
continue to provide the best investment performance. The remarkably strong
spending on technology goods and services leads us to believe that technology
stocks will retain their leadership status. However, technology performance may
not be as dominant as it was last year. To position the Fund for this
possibility, we recently reduced the Fund's heavy weighting in technology stocks
and selectively purchased growth stocks in other areas, such as the consumer,
financial, energy services and telecommunications sectors. Nevertheless,
technology still remains our core focus.
Robert Streed
Portfolio Manager
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
NORTHERN SELECT EQUITY FUND VS. S&P 500/R INDEX
FUND'S TOTAL RETURN
FOR THE PERIOD ENDED 3/31/00
-----------------------------------------
ONE YEAR 59.78%
AVERAGE ANNUAL FIVE YEAR 34.97%
AVERAGE ANNUAL
SINCE INCEPTION 30.17%
SELECT EQUITY S&P 500/R
FUND Index
------------- ---------
4/6/94 $10,000 $10,000
3/31/95 10,818 11,494
3/31/96 13,598 15,185
3/31/97 15,725 18,201
3/31/98 23,542 26,937
3/31/99 30,319 31,919
3/31/00 48,444 37,642
This chart assumes an initial gross investment of $10,000 made on 4/6/94 (com
mencement). Returns shown include the reinvestment of all dividends and reflect
fee waivers in effect; in the absence of fee waivers, performance would be
reduced. Past performance is not predictive of future results. Investment return
and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost.
The S&P 500/R Index consists of 500 stocks chosen for market size, liquidity,
and industry group representation. It is a market-value weighted index, with
each of the stock's weight in the Index proportionate to its market value. The
"500" is one of the most widely used benchmarks of U.S. equity performance.
Unlike actual fund performance, performance of an index does not reflect any
expenses or transaction costs. A direct investment in an unmanaged index is not
possible.
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<PAGE>
NORTHERN FUNDS Annual Report
--------------------------------------------------------------------------------
MID CAP GROWTH FUND
--------------------------------------------------------------------------------
The major factor driving the stock market's performance during the fiscal year
was the strength of technology and biotechnology stocks. In traditional
technology, investor enthusiasm was focused on the communication and electronic
commerce areas. In biotechnology, human genome mapping and increased awareness
of ongoing research efforts propelled the sector higher.
In selecting stocks for the Fund, we continued to use a bottom-up discipline.
The sector-momentum portion of that discipline, combined with our insistence
that the stocks we include in the portfolio have strong revenue and earnings-
growth prospects, led us to substantially increase the Fund's technology
holdings throughout the year. About half way through the period, the same
disciplines caused us to add biotechnology stocks to the Fund.
The Fund's performance was exceptionally strong, with a total return of 108.66
percent for the year ended March 31, 2000. This gain was well ahead of the
benchmark index's return of 38.08 percent. The Fund's outperformance primarily
was driven by the strength of its technology stocks and the Fund's large
position in the technology sector.
With the recent market volatility, particularly among technology stocks, the
market may begin to broaden out beyond the narrow sectors that generated most of
last year's positive investment performance. We already have reduced somewhat
the Fund's large technology emphasis and increased holdings of growth companies
in the retailing, energy, and non-biotechnology medical industries. If investor
interest continues to move toward non-technology sectors, we will become more
aggressive at broadening the Fund's holdings while maintaining positions in the
most-promising technology industries and companies.
Ted Breckel
Portfolio Manager
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
NORTHERN MID CAP GROWTH FUND VS. S&P MIDCAP 400 STOCK INDEX
FUND'S TOTAL RETURN
FOR THE PERIOD ENDED 3/31/00
-----------------------------------------
ONE YEAR 108.66%
AVERAGE ANNUAL
SINCE INCEPTION 56.38%
MID CAP S&P MidCap 400
GROWTH FUND Stock Index
----------- --------------
3/31/98 $10,000 $10,000
3/31/99 11,719 10,027
3/31/00 24,453 13,845
This chart assumes an initial gross investment of $10,000 made on 3/31/98 (com
mencement). Returns shown include the reinvestment of all dividends and reflect
fee waivers in effect; in the absence of fee waivers, performance would be
reduced. Past performance is not predictive of future results. Investment return
and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost.
The Standard & Poor's MidCap 400 Stock Index is a market-weighted index composed
of 400 common stocks chosen by Standard & Poor's for market size, liquidity and
industry group representation. The purpose of the S&P MidCap 400 Index is to
represent the performance of the medium-capitalization sector of the U.S.
securities markets. Medium capitalized stocks which are included in the S&P 500
Index are excluded from the S&P MidCap 400 Index. Except for a limited number of
Canadian securities, the S&P MidCap 400 Index does not include foreign
securities. As of November 30, 1999, the approximate market capitalization range
of the companies included in the S&P MidCap 400 Index was between $195 million
and $23.4 billion.
Unlike actual fund performance, performance of an index does not reflect any
expenses or transaction costs. A direct investment in an unmanaged index is not
possible.
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<PAGE>
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SMALL CAP INDEX FUND
-------------------------------------------------------------------------------
Small-capitalization stocks, as measured by the Russell 2000 Index, posted a
total return of 26.86 percent for the period September 3, 1999 (the Fund's
commencement) through March 31, 2000. The technology sector's stellar
performance was the main contributor to the Index's return, while strong results
from the business equipment and services, health care and energy sectors also
enhanced the return.
The Fund is passively managed to track the risk and return characteristics of
the Russell 2000 Index. As such, the Fund's total return of 23.22 percent from
September 3, 1999 through March 31, 2000, closely matched the Index return. The
slight differences in return primarily were due to expenses charged to the Fund
and not to the Index; transaction costs applied to the Fund and not to the
Index; and the inability of the Fund to accommodate cash admissions and
withdrawals until the following morning.
On June 30, 2000, Frank Russell & Co. is scheduled to reconstitute the Russell
2000 Index. We will rebalance the Fund to accommodate the new additions and
deletions in the Russell 2000 Index.
Going forward, we will continue to follow a passive strategy designed to provide
returns that approximate those of the Russell 2000 Index.
Barbara Tuszynska
Portfolio Manager
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
NORTHERN SMALL CAP INDEX FUND VS. RUSSELL 2000 INDEX
FUND'S TOTAL RETURN
FOR THE PERIOD ENDED 3/31/00
-----------------------------------------
CUMULATIVE SINCE INCEPTION 23.22%
SMALL CAP Russell 2000
INDEX FUND Index
---------- ------------
9/3/99 $10,000 $10,000
3/31/00 12,322 12,686
This chart assumes an initial gross investment of $10,000 made on 9/3/99 (com
mencement). Returns shown include the reinvestment of all dividends and reflect
fee waivers in effect; in the absence of fee waivers, performance would be
reduced. Past performance is not predictive of future results. Investment return
and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost.
The Russell 2000 Index is an index of the smallest 2,000 companies in the
Russell 3000 Index, as ranked by total market capitalization. The Russell 2000
Index is widely regarded in the industry to accurately capture the universe of
small-cap stocks.
Unlike actual fund performance, performance of an index does not reflect any
expenses or transaction costs. A direct investment in an unmanaged index is not
possible.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
INVESTORS SHOULD KEEP IN MIND THAT, WHILE INVESTING IN SMALL-COMPANY STOCKS
CAN BE REWARDING, THESE STOCKS ARE GENERALLY RISKIER THAN LARGE-COMPANY
STOCKS DUE TO GREATER VOLATILITY AND LESS LIQUIDITY.
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<PAGE>
NORTHERN FUNDS Annual Report
--------------------------------------------------------------------------------
SMALL CAP FUND
--------------------------------------------------------------------------------
Small-capitalization stocks enjoyed a robust rally during the fiscal year ended
March 31, 2000, significantly outperforming their large-capitalization
counterparts. The Russell 2000 Index, which returned 37.29 percent for the year,
outperformed large-cap stocks, as measured by the S&P 500/R Index, by more than
19 percentage points. Strong performance from technology, the Russell 2000
Index's highest-performing sector for the period, as well gains in the health
care and energy sectors helped buoy small-cap returns.
Our strategy is to employ a quantitative model to help identify small-cap stocks
that are out of favor in the marketplace. Our purchases and sales are driven
solely by measurable, fundamental factors. When compared to its benchmark, the
Russell 2000, the Fund is similar in terms of sector exposure, but it has a
smaller capitalization profile. Additionally, the Fund has a value bias, while
the Index is growth-oriented.
The Fund posted a total return of 30.01 percent for the year ended March 31,
2000. The Fund's value orientation was the primary factor in its
underperformance relative to the Russell 2000 Index. In general, small-cap value
stocks underperformed small-cap growth stocks by more than 45 percentage points
for the year. Nevertheless, our efforts to minimize the Fund's active risk and
maintain a sector-neutral strategy contributed positively to the Fund's return.
Going forward, we will continue using our proprietary, quantitative model to
select stocks with desired value and capitalization characteristics.
Susan French
Portfolio Manager
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
NORTHERN SMALL CAP FUND VS. RUSSELL 2000 INDEX
FUND'S TOTAL RETURN
FOR THE PERIOD ENDED 3/31/00
----------------------------------------
ONE YEAR 30.01%
AVERAGE ANNUAL FIVE YEAR 14.66%
AVERAGE ANNUAL
SINCE INCEPTION 12.19%
SMALL CAP Russell 2000
FUND Index
--------- ------------
4/1/94 $10,000 $10,000
3/31/95 10,057 10,532
3/31/96 12,480 13,563
3/31/97 14,037 14,261
3/31/98 20,032 20,214
3/31/99 15,333 16,931
3/31/00 19,933 23,245
This chart assumes an initial gross investment of $10,000 made on 4/1/94 (com
mencement). Returns shown include the reinvestment of all dividends and reflect
fee waivers in effect; in the absence of fee waivers, performance would be
reduced. Past performance is not predictive of future results. Investment return
and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost.
The Russell 2000 Index is an index of the smallest 2,000 companies in the
Russell 3000 Index, as ranked by total market capitalization. The Russell 2000
Index is widely regarded in the industry to accurately capture the universe of
small-cap stocks.
Unlike actual fund performance, performance of an index does not reflect any
expenses or transaction costs. A direct investment in an unmanaged index is not
possible.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
INVESTORS SHOULD KEEP IN MIND THAT, WHILE INVESTING IN SMALL-COMPANY STOCKS
CAN BE REWARDING, THESE STOCKS ARE GENERALLY RISKIER THAN LARGE-COMPANY
STOCKS DUE TO GREATER VOLATILITY AND LESS LIQUIDITY.
-------------------------------------------------------------------------------
<PAGE>
-------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
-------------------------------------------------------------------------------
Accelerating earnings growth and historically cheap valuations for small-cap
companies were catalysts for excellent performance in this asset category during
the past fiscal year. For the first time since 1993, the Russell 2000 Index
outperformed the S&P 500/R Index in 1999. A strong year-end rally led by surging
technology stocks accounted for most of the Russell 2000's appreciation for the
year.
With a 93.05 percent total return, the Fund performed well since its inception
on September 30, 1999 (the Fund's commencement), through March 31, 2000,
significantly outpacing the benchmark's return of 26.83 percent. Taking
advantage of market volatility and holding a relatively smaller number of
issuers were the primary drivers of the Fund's success. In particular, owning
significant positions in communication, semiconductor, Internet and software
stocks was critical to the Fund's outperformance. While we strongly believe it's
important to diversify across all industry sectors, it's equally important to
make larger investments in those companies where the risk/reward is especially
appealing. This strategy worked well, as the Fund's larger portfolio holdings
were particularly strong during the period.
We remain optimistic toward the burgeoning wireless communication industry, and
the Fund continues to hold a significant position in this area. We believe that
decreased per-minute pricing from carriers likely will lead to huge increases in
wireless voice and Internet traffic. As such, we own larger positions in
companies that operate telecommunication towers and those that manufacture
components for base stations and cellular telephones.
Going forward, we anticipate good earnings growth in small-cap stocks. From a
valuation standpoint, price-to-earnings ratios, which were at very low historic
levels during most of 1999, recently have moved up substantially. Despite our
concern over "stretched valuations" in the technology sector, we believe small-
cap stocks still should offer excellent performance versus larger-cap stocks.
David Burshtan
Portfolio Manager
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
NORTHERN SMALL CAP GROWTH FUND VS. RUSSELL 2000 INDEX
FUND'S TOTAL RETURN
FOR THE PERIOD ENDED 3/31/00
----------------------------------------
CUMULATIVE SINCE INCEPTION 93.05%
SMALL CAP Russell 2000
GROWTH FUND Index
----------- ------------
9/30/99 $10,000 $10,000
3/31/00 19,305 12,683
This chart assumes an initial gross investment of $10,000 made on 9/30/99 (com
mencement). Returns shown include the reinvestment of all dividends and reflect
fee waivers in effect; in the absence of fee waivers, performance would be
reduced. Past performance is not predictive of future results. Investment return
and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost.
The Russell 2000 Index is an index of the smallest 2,000 companies in the
Russell 3000 Index, as ranked by total market capitalization. The Russell 2000
Index is widely regarded in the industry to accurately capture the universe of
small-cap stocks.
Unlike actual fund performance, performance of an index does not reflect any
expenses or transaction costs. A direct investment in an unmanaged index is not
possible.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
INVESTORS SHOULD KEEP IN MIND THAT, WHILE INVESTING IN SMALL-COMPANY STOCKS
CAN BE REWARDING, THESE STOCKS ARE GENERALLY RISKIER THAN LARGE-COMPANY
STOCKS DUE TO GREATER VOLATILITY AND LESS LIQUIDITY.
-------------------------------------------------------------------------------
<PAGE>
NORTHERN FUNDS Annual Report
-------------------------------------------------------------------------------
INTERNATIONAL GROWTH EQUITY FUND
-------------------------------------------------------------------------------
Investors' interest in non-U.S. equity markets was rekindled during the fiscal
year, as countries across Europe and Asia began to display a re-acceleration of
growth. Moreover, most markets outside the U.S. had not had as strong a run in
the prior year and were beginning to look attractively priced, especially as
earnings growth recovered strongly in Europe.
Early in the Fund's fiscal year, we had a substantial overweight in Japanese
equities. This was due to robust GDP growth in the first quarter of 1999 and to
the massive company restructuring programs announced in early 1999. Toward the
second half of the fiscal year, we decreased the Fund's Japanese holdings and
added to European positions. Economic growth in Japan was expected to wane
during the second half, while positive growth in Europe was filtering into
upward revisions in earnings expectations for many European companies.
The Fund offered a total return of 30.51 percent for the fiscal year ended March
31, 2000, compared to a 25.09 percent return for the benchmark. The Fund's
significant outperformance in part was due to the Fund's country profile, but
stock selection was the primary driver. The Fund benefited from holding a
balanced portfolio of economically-sensitive stocks, which performed well in the
first half of the year, and growth-oriented stocks, which enjoyed a strong run
later in the year.
Looking ahead, we remain optimistic toward Japan and believe the Japanese
economy is set to accelerate again in the first half of 2000. We prefer to
invest in companies that have made significant restructuring progress and are
more sensitive to an economic upturn. In Europe, fundamentals remain strong, as
economies continue to show healthy growth. We believe this provides good long-
term opportunities to hold European stocks. Overall, the Fund holds only a
market weight in technology due to valuation concerns.
Robert LaFleur
Portfolio Manager
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
NORTHERN INTERNATIONAL GROWTH EQUITY FUND VS.
MSCI EAFE INDEX
FUND'S TOTAL RETURN
FOR THE PERIOD ENDED 3/31/00
------------------------------------------
ONE YEAR 30.51%
AVERAGE ANNUAL FIVE YEAR 14.83%
AVERAGE ANNUAL
SINCE INCEPTION 11.71%
INTERNATIONAL GROWTH MSCI EAFE
EQUITY FUND Index
-------------------- ---------
4/1/94 $10,000 $10,000
3/31/95 9,735 10,627
3/31/96 10,573 11,915
3/31/97 10,849 12,089
3/31/98 13,164 14,337
3/31/99 14,882 15,202
3/31/00 19,422 19,016
This chart assumes an initial gross investment of $10,000 made on 4/1/94 (com
mencement). Returns shown include the reinvestment of all dividends and reflect
fee waivers in effect; in the absence of fee waivers, performance would be
reduced. Past performance is not predictive of future results. Investment return
and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost.
The MSCI EAFE Index is the Morgan Stanley Capital International Europe,
Australasia and Far East Index, an unmanaged index which tracks the performance
of selected equity securities in Europe, Australia, Asia and the Far East.
Unlike actual fund performance, performance of an index does not reflect any
expenses or transaction costs. A direct investment in an unmanaged index is not
possible.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
INVESTORS ARE REMINDED THAT, WHILE INVESTING GLOBALLY CAN BE REWARDING,
INVESTMENTS IN FOREIGN SECURITIES INVOLVE CERTAIN RISKS AND CONSIDERATIONS IN
ADDITION TO THOSE INHERENT WITH INVESTING IN U.S. COMPANIES, SUCH AS CURRENCY
FLUCTUATIONS AND POLITICAL INSTABILITY.
-----------------------------------------------------------------------------
<PAGE>
-------------------------------------------------------------------------------
INTERNATIONAL SELECT EQUITY FUND
-------------------------------------------------------------------------------
The emerging stock markets enjoyed a strong rally during the fiscal year, as
economic recoveries that began to unfold in these countries late in 1998
continued into 1999. Government efforts to force corporate restructurings
appeared to have helped pushed the recovery forward and at a faster pace than
investors expected.
We increased the Fund's position in emerging markets to capture the effects of
the favorable economic developments. Our focus was to add high-quality growth
companies, especially in the technology and telecommunications areas, where
investment had lagged the rest of the developed world. Emerging market countries
are in the early phase of investment technology investment compared to the
developed markets.
The Fund posted a total return of 31.25 percent for the fiscal year ended March
31, 2000, compared to a return of 27.65 percent for the benchmark. Stock
selection, particularly in the areas of technology and telecommunications, were
the driving factors behind the Fund's outperformance. The Fund also benefited
from our timely purchases of European and Asian financial stocks during the time
when interest rates were peaking. This strategy resulted in good performance
later in the year.
Going forward, we believe a huge valuation gap exists among "new economy" and
"old economy" stocks. Fears of disinflation and the impact of the Internet have
been the major contributors to this gap. Nevertheless, many companies in the
"old economy" sectors are competitively advantaged and are priced at attractive
levels. Therefore, we have decreased the Fund's weightings in the technology and
telecommunications sectors and have added a balance of classic growth stocks
from the pharmaceutical and consumer areas. In addition, we believe emerging
markets will offer an attractive investment, as long as commodity prices remain
firm and global growth remains strong.
Robert LaFleur
Portfolio Manager
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
NORTHERN INTERNATIONAL SELECT EQUITY FUND VS. MSCI EAFE PLUS EMERGING MARKETS
FREE INDEX
FUND'S TOTAL RETURN
FOR THE PERIOD ENDED 3/31/00
----------------------------------------
ONE YEAR 31.25%
AVERAGE ANNUAL FIVE YEAR 13.87%
AVERAGE ANNUAL
SINCE INCEPTION 11.09%
MSCI EAFE
plus Emerging
INTERNATIONAL SELECT Markets Free
EQUITY FUND Index
-------------------- ------------
4/5/94 $10,000 $10,000
3/31/95 9,805 10,432
3/31/96 10,805 11,767
3/31/97 10,594 12,061
3/31/98 13,110 13,969
3/31/99 14,308 14,494
3/31/00 18,779 18,502
This chart assumes an initial gross investment of $10,000 made on 4/5/94 (com
mencement). Returns shown include the reinvestment of all dividends and reflect
fee waivers in effect; in the absence of fee waivers, performance would be
reduced. Past performance is not predictive of future results. Investment return
and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost.
The MSCI EAFE plus Emerging Markets Free Index is an unmanaged index comprised
of companies representative of developed European and Pacific Basin countries as
well as emerging market countries.
Unlike actual fund performance, performance of an index does not reflect any
expenses or transaction costs. A direct investment in an unmanaged index is not
possible.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
INVESTORS ARE REMINDED THAT, WHILE INVESTING GLOBALLY CAN BE REWARDING,
INVESTMENTS IN FOREIGN SECURITIES INVOLVE CERTAIN RISKS AND CONSIDERATIONS IN
ADDITION TO THOSE INHERENT WITH INVESTING IN U.S. COMPANIES, SUCH AS CURRENCY
FLUCTUATIONS AND POLITICAL INSTABILITY.
------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
TECHNOLOGY FUND
--------------------------------------------------------------------------------
During the past fiscal year, investor enthusiasm for technology stocks went from
warm to red-hot as robust business developments, product innovations, and the
expectation of substantial future growth possibilities all encouraged large cash
flows into the sector. Particularly noteworthy was the excitement surrounding
the areas of next-generation communication networks and business-to-business e-
commerce as well as the powerful advance in the semiconductor sector. This
investor enthusiasm is well grounded in strong fundamental developments, namely
solid economic growth and strong spending on technology. Nevertheless, this
enthusiasm also factors in huge growth expectations that have substantially
raised risk levels in the sector.
As it became clear that the technology sector was gaining momentum, we added
exposure to the areas that investors favored most. We added to the communication
groups, the semiconductor sector and select Internet enabling companies. We also
moved down the capitalization spectrum to include more mid-sized companies in
the portfolio.
The Fund's performance was exceptionally strong for fiscal year ended March 31,
2000, posting a total return of 154.28 percent_well ahead of the Morgan Stanley
High Technology 35 Index return of 108.40 percent. This performance gap was
driven by the Fund's greater exposure to certain emerging high-growth segments
of the technology market, including business-to-business e-commerce,
communication-related semiconductors and next-generation communication services
providers.
The recent strong performance of the technology sector leaves these stocks
vulnerable to a high level of volatility and to selling pressures as investors
take profits or potentially rotate into other, less-exploited market segments.
Any evidence of economic weakness also could cause uncertainty among technology
stocks. In light of these risks, we are focusing on broadening diversification
and improving portfolio liquidity. Any weakness that develops during the middle
part of the year should be viewed as a potential buying opportunity for long-
term investors.
John Leo
George Gilbert
Kevin Spoor
Portfolio Managers
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
NORTHERN TECHNOLOGY FUND VS. MORGAN STANLEY HIGH TECHNOLOGY 35 INDEX AND S&P
500/R INDEX
FUND'S TOTAL RETURN
FOR THE PERIOD ENDED 3/31/00
----------------------------------------
ONE YEAR 154.28%
AVERAGE ANNUAL
SINCE INCEPTION 70.50%
Morgan Stanley High
TECHNOLOGY Technology 35 S&P 500/R
FUND Index Index
---------- ------------------- ---------
4/1/96 $10,000 $10,000 $10,000
3/31/97 12,082 11,232 11,983
3/31/98 18,440 17,218 17,735
3/31/99 33,184 32,438 21,015
3/31/00 84,380 67,601 24,783
This chart assumes an initial gross investment of $10,000 made on 4/1/96 (com
mencement). Returns shown include the reinvestment of all dividends and reflect
fee waivers in effect; in the absence of fee waivers, performance would be
reduced. Past performance is not predictive of future results. Investment return
and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost.
The Morgan Stanley High Technology 35 Index is an equal dollar-weighted index of
35 stocks from 9 technology subsectors: computer services, design software,
server software, PC software and new media, networking and telecom equipment,
server hardware, PC hardware and peripherals, specialized systems, and semi-
conductors.
The S&P 500/R Index consists of 500 stocks chosen for market size, liquidity,
and industry group representation. It is a market-value weighted index, with
each of the stock's weight in the Index proportionate to its market value. The
"500" is one of the most widely used benchmarks of U.S. equity performance.
Unlike actual fund performance, performance of an index does not reflect any
expenses or transaction costs. A direct investment in an unmanaged index is not
possible.
------------------------------------------------------------------------------
------------------------------------------------------------------------------
INVESTORS SHOULD KEEP IN MIND THAT, WHILE SECTOR INVESTING CAN BE REWARDING,
IT IS HIGHLY VOLATILE, AND FUNDS THAT CONCENTRATE IN ONE MARKET SECTOR ARE
GENERALLY RISKIER THAN MORE DIVERSIFIED STRATEGIES.
-----------------------------------------------------------------------------
<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
----------------------------------------------------------------------------------------------------------------------------------
Total Assets 6,291,867 543,791 705,663 2,682,791 411,392
----------------------------------------------------------------------------------------------------------------------------------
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
----------------------------------------------------------------------------------------------------------------------------
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
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
---------------------------------------------------------------------------
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>
NORTHERN FUNDS Annual Report
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>
NORTHERN FUNDS Annual Report
STATEMENTS OF ASSETS AND LIABILITIES MARCH 31, 2000
FIXED INCOME FUNDS
<TABLE>
<CAPTION>
SHORT- CALIFORNIA FLORIDA
U.S. INTERMEDIATE INTERMEDIATE INTERMEDIATE INTERMEDIATE
AMOUNTS IN THOUSANDS, GOV'T. U.S. GOV'T. TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT
EXCEPT PER SHARE DATA FUND FUND FUND FUND FUND
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (cost $358,171, $64,065,
$679,361, $91,869, $44,979, $643,112, $511,399,
$66,399, $123,394, $15,235, $22,652
and $165,703, respectively) $346,683 $62,934 $670,655 $92,723 $44,761
Cash and foreign currencies 7 4 - 47 -
Income receivable 3,132 760 9,491 1,248 629
Receivable for securities sold - - 4,453 524 -
Receivable for fund shares sold 299 49 58 34 -
Receivable from Adviser 13 5 23 5 3
Prepaid and other assets 5 2 7 2 -
------------------------------------------------------------------------------------------------------------------------------
Total Assets 350,139 63,754 684,687 94,583 45,393
------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Cash Overdraft - - - - 1,076
Dividends payable 247 51 391 56 24
Payable for securities purchased - - 4,810 2,015 2,289
Payable for fund shares redeemed 1,033 197 2 - -
Accrued investment advisory fees 50 9 91 12 6
Accrued administration fees 10 2 19 3 1
Accrued custody and accounting fees - - 1 - 2
Accrued transfer agent fees 7 1 13 2 1
Accrued registration fees and other liabilities 51 26 89 25 18
------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 1,398 286 5,416 2,113 3,417
------------------------------------------------------------------------------------------------------------------------------
Net Assets $348,741 $63,468 $679,271 $92,470 $41,976
==============================================================================================================================
ANALYSIS OF NET ASSETS:
Capital stock $361,930 $65,019 $690,235 $91,592 $42,941
Undistributed (distributions in
excess of) net investment income 455 - 77 - -
Undistributed net realized gains
(losses) on investments and
foreign currency transactions (2,156) (420) (2,335) 24 (747)
Net unrealized appreciation (depreciation)
on investments and foreign
currency transactions (11,488) (1,131) (8,706) 854 (218)
Net unrealized gains on translation of assets and
liabilities denominated in foreign currencies - - - - -
------------------------------------------------------------------------------------------------------------------------------
Net Assets $348,741 $63,468 $679,271 $92,470 $41,976
==============================================================================================================================
SHARES OUTSTANDING ($.0001 PAR VALUE,
UNLIMITED AUTHORIZATION) 35,886 6,416 68,432 9,229 4,170
NET ASSET VALUE, REDEMPTION AND
OFFERING PRICE PER SHARE $9.72 $9.89 $9.93 $10.02 $10.07
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
FIXED INCOME FUNDS
<TABLE>
<CAPTION>
INT'L. HIGH HIGH
FIXED ARIZONA CALIFORNIA FIXED YIELD YIELD
AMOUNTS IN THOUSANDS, INCOME TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT INCOME MUNICIPAL FIXED INCOME
EXCEPT PER SHARE DATA FUND FUND FUND FUND FUND FUND FUND
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (cost $358,171, $64,065,
$679,361, $91,869, $44,979, $643,112, $511,399,
$66,399, $123,394, $15,235, $22,652
and $165,703, respectively) $624,848 $517,778 $66,606 $121,851 $14,936 $21,375 $159,791
Cash and foreign currencies - 1 1 706 2,982 1 -
Income receivable 9,227 8,414 936 1,686 216 360 4,553
Receivable for securities sold 106,044 9,346 - 524 1,019 - -
Receivable for fund shares sold 626 15 - 11 - - 1,941
Receivable from Adviser 20 17 4 6 2 2 5
Prepaid and other assets 10 4 1 2 - 2 3
---------------------------------------------------------------------------------------------------------------------------------
Total Assets 740,775 535,575 67,548 124,786 19,155 21,740 166,293
---------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Cash Overdraft - - 190 - - 84 -
Dividends payable 829 344 40 76 - 15 223
Payable for securities purchased 95,920 12,269 905 1,250 - 500 498
Payable for fund shares redeemed 393 342 - 62 - - 4
Accrued investment advisory fees 91 70 9 16 3 3 23
Accrued administration fees 18 15 2 4 1 1 5
Accrued custody and accounting fees - 2 2 2 5 2 3
Accrued transfer agent fees 12 10 1 2 - - 3
Accrued registration fees and other liabilities 78 73 22 27 16 17 24
---------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 97,341 13,125 1,171 1,439 25 622 783
---------------------------------------------------------------------------------------------------------------------------------
Net Assets $643,434 $522,450 $66,377 $123,347 $19,130 $21,118 $165,510
===============================================================================================================================
ANALYSIS OF NET ASSETS:
Capital stock $674,296 $527,113 $66,453 $125,962 $20,388 $22,746 $175,179
Undistributed (distributions in
excess of) net investment income (179) (66) - - (1,069) - -
Undistributed net realized gains
(losses) on investments and
foreign currency transactions (12,419) (10,976) (283) (1,072) (14) (351) (3,757)
Net unrealized appreciation (depreciation)
on investments and foreign
currency transactions (18,264) 6,379 207 (1,543) (179) (1,277) (5,912)
Net unrealized gains on translation of
assets and liabilities denominated in
foreign currencies - - - - 4 - -
---------------------------------------------------------------------------------------------------------------------------------
Net Assets $643,434 $522,450 $66,377 $123,347 $19,130 $21,118 $165,510
================================================================================================================================
SHARES OUTSTANDING ($.0001 PAR VALUE,
UNLIMITED AUTHORIZATION) 66,886 52,274 6,615 11,954 2,000 2,343 17,799
NET ASSET VALUE, REDEMPTION AND
OFFERING PRICE PER SHARE $9.62 $9.99 $10.03 $10.32 $9.56 $9.01 $9.30
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to the Financial Statements.
NORTHERN FUNDS Annual Report
STATEMENTS OF OPERATIONS YEAR ENDED MARCH 31, 2000
FIXED INCOME FUNDS
<TABLE>
<CAPTION>
SHORT- CALIFORNIA FLORIDA
U.S. INTERMEDIATE INTERMEDIATE INTERMEDIATE INTERMEDIATE
GOV'T. U.S. GOV'T. TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT
AMOUNTS IN THOUSANDS FUND FUND<F1> FUND FUND<F1> FUND
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $17,851 $1,960 $25,427 $2,305 $1,841
-------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 2,336 224 3,911 331 295
Administration fees 467 45 782 66 59
Transfer agent fees 311 30 521 44 39
Custody and accounting fees 86 19 133 17 45
Registration fees 84 19 121 14 21
Professional fees 20 29 24 34 20
Trustees' fees and expenses 7 1 9 2 4
Other 19 3 30 3 2
-------------------------------------------------------------------------------------------------------------------------------
Total Expenses 3,330 370 5,531 511 485
Less voluntary waivers of:
Investment advisory fees - - (261) (22) (20)
Administration fees (137) - (182) - (19)
Less reimbursement of expenses by Adviser (390) (101) (656) (113) (313)
-------------------------------------------------------------------------------------------------------------------------------
Net Expenses 2,803 269 4,432 376 333
-------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 15,048 1,691 20,995 1,929 1,508
-------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAINS (LOSSES):
Net realized gains (losses) on:
Investments (1,988) (420) (2,249) 24 (748)
Foreign currency transactions - - - - -
Net change in unrealized appreciation
(depreciation) on investments and foreign
currency transactions (7,317) (236) (15,980) 254 (620)
Net change in unrealized gains on
translation of assets and liabilities
denominated in foreign currencies - - - - -
-------------------------------------------------------------------------------------------------------------------------------
Net Gains (Losses) on Investments (9,305) (656) (18,229) 278 (1,368)
-------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $5,743 $1,035 $2,766 $2,207 $140
===============================================================================================================================
<F1> Commenced investment operations on October 1, 1999.
</TABLE>
FIXED INCOME FUNDS
<TABLE>
<CAPTION>
INT'L. HIGH HIGH
FIXED ARIZONA CALIFORNIA FIXED YIELD YIELD
INCOME TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT INCOME MUNICIPAL FIXED INCOME
AMOUNTS IN THOUSANDS FUND FUND FUND<F1> FUND FUND FUND FUND
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $30,159 $20,574 $1,517 $5,155 $914<F2> $967 $10,421
--------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 3,447 2,818 222 744 158 122 748
Administration fees 690 564 44 149 27 24 150
Transfer agent fees 460 376 30 99 18 16 100
Custody and accounting fees 108 110 24 52 75 32 50
Registration fees 118 102 12 23 21 19 38
Professional fees 20 22 29 17 15 21 22
Trustees' fees and expenses 8 7 - 5 3 2 3
Other 25 22 2 5 1 - 2
--------------------------------------------------------------------------------------------------------------------------------
Total Expenses 4,876 4,021 363 1,094 318 236 1,113
Less voluntary waivers of:
Investment advisory fees - (188) (15) (50) - (8) -
Administration fees (158) (117) - (39) (8) (7) (37)
Less reimbursement of expenses by Adviser (581) (522) (96) (162) (108) (83) (178)
--------------------------------------------------------------------------------------------------------------------------------
Net Expenses 4,137 3,194 252 843 202 138 898
--------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 26,022 17,380 1,265 4,312 712 829 9,523
--------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAINS (LOSSES):
Net realized gains (losses) on:
Investments (12,222) (10,976) (283) (1,072) 9 (351) (3,757)
Foreign currency transactions - - - (1,281) - -
Net change in unrealized appreciation
(depreciation) on investments and
foreign currency transactions (4,337) (3,289) 634 (2,706) (436) (1,266) (6,180)
Net change in unrealized gains on
translation of assets and liabilities
denominated in foreign currencies - - - - 14 - -
--------------------------------------------------------------------------------------------------------------------------------
Net Gains (Losses) on Investments (16,559) (14,265) 351 (3,778) (1,694) (1,617) (9,937)
--------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $9,463 $3,115 $1,616 $534 $(982) $(788) $(414)
================================================================================================================================
<F1> Commenced investment operations on October 1, 1999.
<F2> Net of $4 in non-reclaimable foreign withholding taxes.
</TABLE>
See Notes to the Financial Statements.
STATEMENTS OF CHANGES IN NET ASSETS
FIXED INCOME FUNDS
<TABLE>
<CAPTION>
SHORT CALIFORNIA
U.S. INTERMEDIATE INTERMEDIATE INTERMEDIATE
GOVERNMENT U.S. GOV'T. TAX-EXEMPT TAX-EXEMPT
FUND FUND FUND FUND
------------------ ---------- ---------------- -----------
YEAR YEAR PERIOD YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
AMOUNTS IN THOUSANDS 2000 1999 2000<F1> 2000 1999 2000<F1>
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $15,048 $11,957 $1,691 $20,995 $12,050 $1,929
Net realized gains (losses) on investments
and foreign currency transactions (1,988) 6,337 (420) (2,249) 2,609 24
Net change in unrealized appreciation
(depreciation) on investments (7,317) (3,841) (236) (15,980) 370 254
-----------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets
Resulting from Operations 5,743 14,453 1,035 2,766 15,029 2,207
-----------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 54,658 91,913 12,072 97,338 70,405 28,979
Shares issued upon conversion 112,138 - 60,337 363,331 - 79,836
Shares from reinvestment of dividends 1,734 7,278 21 1,812 4,060 105
Shares redeemed (78,206) (56,221) (8,306) (109,074) (27,748) (16,728)
-----------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets
Resulting from Capital Share Transactions 90,324 42,970 64,124 353,407 46,717 92,192
-----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID:
From net investment income (15,048) (11,957) (1,691) (20,995) (12,050) (1,929)
From net realized gains (520) (6,576) - - (3,436) -
In excess of net investment income - - - - - -
In excess of net realized gains - - - (696) - -
-----------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (15,568) (18,533) (1,691) (21,691) (15,486) (1,929)
-----------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 80,499 38,890 63,468 334,482 46,260 92,470
NET ASSETS:
Beginning of period 268,242 229,352 - 344,789 298,529 -
-----------------------------------------------------------------------------------------------------------------------
End of period $348,741 $268,242 $63,468 $679,271 $344,789 $92,470
=======================================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS
IN EXCESS OF) NET INVESTMENT INCOME $455 $364 $- $77 $77 $-
=======================================================================================================================
<F1> Commenced investment operations on October 1, 1999.
</TABLE>
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
<TABLE>
<CAPTION>
FLORIDA
INTERMEDIATE FIXED ARIZONA CALIFORNIA
TAX-EXEMPT INCOME TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT
FUND FUND FUND FUND FUND
-------------- ------- ---------- --------- --------------
YEAR YEAR YEAR YEAR YEAR YEAR PERIOD YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
AMOUNTS IN THOUSANDS 2000 1999 2000 1999 2000 1999 2000<F1> 2000 1999
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $1,508 $1,074 $26,022 $12,034 $17,380 $8,058 $1,265 $4,312 $2,239
Net realized gains (losses)
on investments
and foreign currency transactions (748) 380 (12,222) 7,776 (10,976) 3,000 (283) (1,072) 772
Net change in unrealized
appreciation (depreciation)
on investments (620) (52) (4,337) (8,977) (3,289) (1,001) 634 (2,706) 365
-----------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets
Resulting from Operations 140 1,402 9,463 10,833 3,115 10,057 1,616 534 3,376
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 20,304 18,721 171,003 226,121 81,379 110,381 30,701 32,875 49,919
Shares issued upon conversion - - 293,695 - 327,321 - 56,205 60,293 -
Shares from reinvestment of
dividends 395 581 4,430 7,524 1,671 4,617 24 875 1,068
Shares redeemed (14,343) (7,358) (82,162) (132,989) (100,597) (52,123) (20,904) (44,000) (14,198)
-----------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets
Resulting from Capital
Share Transactions 6,356 11,944 386,966 100,656 309,774 62,875 66,026 50,043 36,789
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID:
From net investment income (1,508) (1,074) (26,022) (11,874) (17,380) (7,981) (1,265) (4,312) (2,239)
From net realized gains (133) (480) (2,081) (6,312) (882) (4,271) - (167) (620)
In excess of net investment income - - - (112) - (77) - - -
In excess of net realized gains - - - - - - - - -
-----------------------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (1,641) (1,554) (28,103) (18,298) (18,262) (12,329) (1,265) (4,479) (2,859)
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 4,855 11,792 368,326 93,191 294,627 60,603 66,377 46,098 37,306
NET ASSETS:
Beginning of period 37,121 25,329 275,108 181,917 227,823 167,220 - 77,249 39,943
-----------------------------------------------------------------------------------------------------------------------------------
End of period $41,976 $37,121 $643,434 $275,108 $522,450 $227,823 $66,377 $123,347 $77,249
===================================================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS
IN EXCESS OF) NET INVESTMENT
INCOME $- $- $(179) $(112) $(66) $(66) $- $- $-
===================================================================================================================================
<F1> Commenced investment operations on October 1, 1999.
</TABLE>
See Notes to the Financial Statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
FIXED INCOME FUNDS
<TABLE>
<CAPTION>
INTERNATIONAL HIGH YIELD HIGH YIELD
FIXED INCOME MUNICIPAL FIXED INCOME
FUND FUND FUND
----------------- ---------------- ------------------
YEAR YEAR YEAR PERIOD YEAR PERIOD
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<F1> 2000 1999<F1>
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $712 $696 $829 $41 $9,523 $376
Net realized losses on investments,
forward foreign currency contracts and
foreign currency transactions (1,272) (129) (351) - (3,757) -
Net change in unrealized appreciation
(depreciation) on investments and
foreign currency transactions (436) 789 (1,266) (11) (6,180) 268
Net change in unrealized gains (losses) on
translation of assets and liabilities
denominated in foreign currencies 14 (2) - - - -
-----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations (982) 1,354 (788) 30 (414) 644
-----------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 5,161 2,308 16,128 10,260 159,272 40,664
Shares issued upon conversion 5,714 - - - - -
Shares from reinvestment of dividends 39 181 49 1 1,366 65
Shares redeemed (4,572) (2,627) (3,468) (224) (25,996) (192)
-----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Capital Share Transactions 6,342 (138) 12,709 10,037 134,642 40,537
-----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID:
From net investment income (515) (452) (836) (34) (9,582) (317)
From net realized gains - (93) - - - -
In excess of net realized gains - (61) - - - -
Total Distributions Paid (515) (606) (836) (34) (9,582) (317)
-----------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 4,845 610 11,085 10,033 124,646 40,864
NET ASSETS:
Beginning of period 14,285 13,675 10,033 - 40,864 -
-----------------------------------------------------------------------------------------------------------------------
End of period $19,130 $14,285 $21,118 $10,033 $165,510 $40,864
=======================================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS
IN EXCESS OF) NET INVESTMENT INCOME $(1,069) $14 $- $7 $- $59
=======================================================================================================================
<F1> Commenced investment operations after the close of business on December
31, 1998.
</TABLE>
See Notes to the Financial Statements.
NORTHERN FUNDS Annual Report
FINANCIAL HIGHLIGHTS
FIXED INCOME FUNDS
<TABLE>
<CAPTION>
U.S. GOVERNMENT
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
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF YEAR $10.05 $10.20 $9.88 $10.06 $9.84
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.47 0.50 0.54 0.51 0.51
Net realized and unrealized gains (losses)
on investments (0.32) 0.10 0.32 (0.11) 0.29
=============================================================================================================
Total Income from Investment Operations 0.15 0.60 0.86 0.40 0.80
=============================================================================================================
LESS DISTRIBUTIONS PAID:
From net investment income (0.47) (0.49) (0.53) (0.51) (0.51)
From net realized gains (0.01) (0.26) (0.01) (0.05) (0.07)
In excess of net realized gains - - - (0.02) -
Total Distributions Paid (0.48) (0.75) (0.54) (0.58) (0.58)
=============================================================================================================
NET ASSET VALUE, END OF YEAR $9.72 $10.05 $10.20 $ 9.88 $10.06
=============================================================================================================
TOTAL RETURN<F1> 1.67% 6.01% 8.90% 3.98% 7.65%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of year $348,741 $268,242 $229,352 $181,921 $149,062
Ratio to average net assets of <F2>:
Expenses, net of waivers and reimbursements 0.90% 0.90% 0.90% 0.90% 0.90%
Expenses, before waivers and reimbursements 1.07% 1.07% 1.07% 1.09% 1.10%
Net investment income, net of waivers
and reimbursements 4.83% 4.73% 5.24% 5.19% 5.07%
Net investment income, before waivers
and reimbursements 4.66% 4.56% 5.07% 5.00% 4.87%
Portfolio Turnover Rate 30.56% 123.75% 47.41% 83.41% 112.00%
-------------------------------------------------------------------------------------------------------------
<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 period less than one year.
</TABLE>
See Notes to the Financial Statements.
FINANCIAL HIGHLIGHTS (Continued)
FIXED INCOME FUNDS
<TABLE>
<CAPTION>
SHORT-
INTERMEDIATE INTERMEDIATE
U.S. GOV'T. TAX-EXEMPT
FUND FUND
----------- ----------------------------------------------------------
PERIOD YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
2000<F3> 2000 1999 1998 1997 1996
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD $10.00 $10.36 $10.36 $10.07 $10.22 $10.03
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.27 0.39 0.39 0.40 0.40 0.41
Net realized and unrealized gains (losses)
on investments (0.11) (0.42) 0.11 0.29 (0.06) 0.26
============================================================================================================================
Total Income (Loss) from Investment Operations 0.16 (0.03) 0.50 0.69 0.34 0.67
============================================================================================================================
LESS DISTRIBUTIONS PAID:
From net investment income (0.27) (0.39) (0.39) (0.40) (0.40) (0.41)
From net realized gains - (0.01) (0.11) - (0.07) (0.07)
In excess of net investment income - - - - - -
In excess of net realized gains - - - - (0.02) -
============================================================================================================================
Total Distributions Paid (0.27) (0.40) (0.50) (0.40) (0.49) (0.48)
============================================================================================================================
NET ASSET VALUE, END OF PERIOD $9.89 $9.93 $10.36 $10.36 $10.07 $10.22
============================================================================================================================
TOTAL RETURN<F1> 1.76% (0.14)% 4.88% 6.95% 3.39% 6.81%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of year $63,468 $679,271 $344,789 $298,529 $264,630 $244,139
Ratio to average net assets of <F2>:
Expenses, net of waivers and reimbursements 0.90% 0.85% 0.85% 0.85% 0.85% 0.85%
Expenses, before waivers and reimbursements 1.24% 1.06% 1.06% 1.07% 1.07% 1.08%
Net investment income, net of waivers
and reimbursements 5.66% 4.03% 3.76% 3.84% 3.90% 4.01%
Net investment income, before waivers
and reimbursements 5.32% 3.82% 3.55% 3.62% 3.68% 3.78%
Portfolio Turnover Rate 45.44% 68.69% 54.03% 61.83% 61.39% 137.85%
-----------------------------------------------------------------------------------------------------------------------------
<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.
<F3> Commenced investment operations on October 1, 1999.
</TABLE>
See Notes to the Financial Statements.
NORTHERN FUNDS Annual Report
<TABLE>
<CAPTION>
CALIFORNIA FLORIDA
INTERMEDIATE INTERMEDIATE FIXED
TAX-EXEMPT TAX-EXEMPT INCOME
FUND FUND FUND
---------- --------------------------------- ----------------------------------------------
PERIOD YEAR YEAR YEAR PERIOD YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
2000<F3> 2000 1999 1998 1997<F4> 2000 1999 1998 1997 1996
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING
OF PERIOD $10.00 $10.47 $10.47 $10.03 $10.00 $10.15 $10.42 $ 9.86 $10.10 $9.78
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income 0.20 0.38 0.39 0.40 0.24 0.54 0.54 0.59 0.57 0.58
Net realized and unrealized
gains (losses) on investments 0.02 (0.37) 0.16 0.44 0.03 (0.50) - 0.56 (0.12) 0.50
===================================================================================================================================
Total Income (Loss) from
Investment Operations 0.22 0.01 0.55 0.84 0.27 0.04 0.54 1.15 0.45 1.08
===================================================================================================================================
LESS DISTRIBUTIONS PAID:
From net investment income (0.20) (0.38) (0.39) (0.40) (0.24) (0.54) (0.54) (0.58) (0.56) (0.59)
From net realized gains - (0.03) (0.16) - - (0.03) (0.27) (0.01) (0.10) (0.17)
In excess of net investment
income - - - - - - - - (0.01) -
In excess of net realized gains - - - - - - - - (0.02) -
===================================================================================================================================
Total Distributions Paid (0.20) (0.41) (0.55) (0.40) (0.24) (0.57) (0.81) (0.59) (0.69) (0.76)
===================================================================================================================================
NET ASSET VALUE, END OF PERIOD $10.02 $10.07 $10.47 $10.47 $10.03 $9.62 $10.15 $10.42 $ 9.86 $10.10
===================================================================================================================================
TOTAL RETURN<F1> 2.37% 0.30% 5.38% 8.51% 2.63% 0.57% 5.18% 11.90% 4.59% 11.18%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands,
end of year $92,470 $41,976 $37,121 $25,329 $14,807 $643,434 $275,108 $181,197 $122,444 $101,339
Ratio to average net
assets of <F2>:
Expenses, net of waivers
and reimbursements 0.85% 0.85% 0.85% 0.85% 0.85% 0.90% 0.90% 0.90% 0.90% 0.90%
Expenses, before
waivers and
reimbursements 1.16% 1.24% 1.29% 1.41% 2.31% 1.06% 1.08% 1.09% 1.12% 1.14%
Net investment income,
net of waivers
and reimbursements 4.37% 3.84% 3.67% 3.86% 3.84% 5.66% 5.15% 5.71% 5.69% 5.79%
Net investment income,
before waivers
and reimbursements 4.06% 3.45% 3.23% 3.30% 2.38% 5.50% 4.97% 5.52% 5.47% 5.55%
Portfolio Turnover Rate 31.29% 133.01% 57.98% 46.12% 50.77% 105.70% 84.85% 33.55% 87.64% 116.22%
-----------------------------------------------------------------------------------------------------------------------------------
<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.
<F3> Commenced investment operations on October 1, 1999.
<F4> Commenced investment operations on August 15, 1996.
FINANCIAL HIGHLIGHTS (Continued)
FIXED INCOME FUNDS
</TABLE>
<TABLE>
<CAPTION>
ARIZONA
TAX-EXEMPT TAX-EXEMPT
FUND FUND
------------------------------------------------------- -----------
YEAR YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
2000 1999 1998 1997 1996 2000<F3>
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD $10.63 $10.73 $10.24 $10.35 $10.08 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.45 0.45 0.47 0.50 0.48 0.20
Net realized and unrealized gains (losses)
on investments, forward foreign currency
contracts and foreign currency transactions (0.62) 0.13 0.57 (0.06) 0.29 0.03
==========================================================================================================================
Total Income (Loss) from Investment Operations (0.17) 0.58 1.04 0.44 0.77 0.23
==========================================================================================================================
LESS DISTRIBUTIONS PAID:
From net investment income (0.45) (0.45) (0.47) (0.47) (0.48) (0.20)
From net realized gains (0.02) (0.23) (0.08) (0.05) (0.02) -
In excess of net investment income - - - (0.03) - -
In excess of net realized gains - - - - - -
==========================================================================================================================
Total Distributions Paid (0.47) (0.68) (0.55) (0.55) (0.50) (0.20)
==========================================================================================================================
NET ASSET VALUE, END OF PERIOD $9.99 $10.63 $10.73 $10.24 $10.35 $10.03
==========================================================================================================================
TOTAL RETURN<F1> (1.50)% 5.47% 10.39% 4.32% 7.80% 2.43%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $522,450 $227,823 $167,220 $136,372 $125,113 $66,377
Ratio to average net assets of <F2>:
Expenses, net of waivers and reimbursements 0.85% 0.85% 0.85% 0.85% 0.85% 0.85%
Expenses, before waivers and reimbursements 1.07% 1.08% 1.09% 1.10% 1.10% 1.23%
Net investment income, net of waivers
and reimbursements 4.63% 4.13% 4.42% 4.61% 4.62% 4.28%
Net investment income, before waivers
and reimbursements 4.41% 3.90% 4.18% 4.36% 4.37% 3.90%
Portfolio Turnover Rate 118.69% 140.39% 74.32% 8.10% 60.50% 29.85%
--------------------------------------------------------------------------------------------------------------------------
<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.
<F3> Commenced investment operations on October 1, 1999.
</TABLE>
See Notes to the Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
CALIFORNIA INTERNATIONAL
TAX-EXEMPT FIXED INCOME
FUND FUND
------------------------------- -------------------------------------------------------
YEAR YEAR PERIOD YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
2000 1999 1998<F4> 2000 1999 1998 1997 1996
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING
OF PERIOD $10.89 $10.76 $10.00 $10.38 $ 9.85 $10.08 $10.62 $10.64
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income 0.43 0.43 0.41 (0.25) 0.38 0.43 0.56 0.78
Net realized and unrealized
gains (losses)
on investments, forward
foreign currency
contracts and foreign currency
transactions (0.55) 0.23 0.76 (0.28) 0.58 0.02 (0.40) (0.16)
==================================================================================================================================
Total Income (Loss) from
Investment Operations (0.12) 0.66 1.17 (0.53) 0.96 0.45 0.16 0.62
==================================================================================================================================
LESS DISTRIBUTIONS PAID:
From net investment income (0.43) (0.43) (0.41) - (0.32) (0.59) (0.58) (0.62)
From net realized gains (0.02) (0.10) - - (0.07) (0.09) (0.11) (0.02)
In excess of net investment income - - - (0.29) - - - -
In excess of net realized gains - - - - (0.04) - (0.01) -
==================================================================================================================================
Total Distributions Paid (0.45) (0.53) (0.41) (0.29) (0.43) (0.68) (0.70) (0.64)
==================================================================================================================================
NET ASSET VALUE, END OF PERIOD $10.32 $10.89 $10.76 $9.56 $10.38 $9.85 $10.08 $10.62
==================================================================================================================================
TOTAL RETURN<F1> (0.93)% 6.20% 11.86% (5.11)% 9.68% 4.61% 1.39% 5.84%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands,
end of period $123,347 $77,249 $39,943 $19,130 $14,285 $13,675 $16,426 $15,665
Ratio to average net
assets of <F2>:
Expenses, net of waivers
and reimbursements 0.85% 0.85% 0.85% 1.15% 1.15% 1.15% 1.15% 1.15%
Expenses, before waivers
and reimbursements 1.10% 1.17% 1.60% 1.81% 1.96% 1.87% 1.96% 2.00%
Net investment income, net
of waivers
and reimbursements 4.35% 3.87% 4.01% 4.06% 4.69% 4.98% 5.49% 5.75%
Net investment income,
before waivers
and reimbursements 4.10% 3.55% 3.26% 3.40% 3.88% 4.26% 4.68% 4.90%
Portfolio Turnover Rate 67.91% 62.55% 22.22% 90.69% 16.49% 30.26% 37.76% 52.05%
----------------------------------------------------------------------------------------------------------------------------------
<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.
<F3> Commenced investment operations on April 8, 1997.
</TABLE>
See Notes to the Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS (Continued)
FIXED INCOME FUNDS
<TABLE>
<CAPTION>
HIGH YIELD
HIGH YIELD FIXED
MUNICIPAL INCOME
FUND FUND
-------------------- ------------------------
YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED
MAR. 31, MAR. 31, MAR. 31, MAR. 31,
2000 1999<F3> 2000 1999<F3>
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF YEAR $10.01 $10.00 $10.10 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.44 0.05 0.85 0.11
Net realized and unrealized gains (losses)
on investments (0.99) - (0.79) 0.08
===============================================================================================================
Total Income (Loss) from Investment Operations (0.55) 0.05 0.06 0.19
===============================================================================================================
LESS DISTRIBUTIONS PAID:
From net investment income (0.45) (0.04) (0.86) (0.09)
===============================================================================================================
Total Distributions Paid (0.45) (0.04) (0.86) (0.09)
===============================================================================================================
NET ASSET VALUE, END OF YEAR $9.01 $10.01 $9.30 $10.10
===============================================================================================================
TOTAL RETURN<F1> (5.40)% 0.57% 0.80% 2.06%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of year $21,118 $10,033 $165,510 $40,864
Ratio to average net assets of <F2>:
Expenses, net of waivers and reimbursements 0.85% 0.85% 0.90% 0.90%
Expenses, before waivers and reimbursements 1.46% 5.60% 1.12% 2.18%
Net investment income, net of waivers
and reimbursements 5.12% 2.92% 9.55% 6.78%
Net investment income (loss), before waivers
and reimbursements 4.51% (1.83)% 9.33% 5.50%
Portfolio Turnover Rate 21.69% 0.00% 87.92% 0.00%
---------------------------------------------------------------------------------------------------------------
<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.
<F3> Commenced investment operations after the close of business on December
31, 1998.
</TABLE>
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
U.S. GOVERNMENT FUND
NORTHERN FUNDS Annual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES - 71.7%
FANNIE MAE - 15.2%
FNMA Notes
$18,500 5.625%, 3/15/01 $18,315
19,050 5.25%, 1/15/03 18,169
10,000 5.625%, 5/14/04 9,483
7,500 6.00%, 5/15/08 6,962
---------
52,929
---------
FANNIE MAE REMIC TRUST - 17.4%
68 Series 1996-M7, Class A,
6.653%, 9/17/04 68
10,000 Series 1997-M5, Class C,
6.74%, 8/25/07 9,705
17,750 Series 1998-24, Class QB,
6.00%, 9/18/12 17,628
18,121 Pool #440700,
6.00%, 11/1/28 16,501
18,405 Pool #452421,
6.00%, 12/1/28 16,760
---------
60,662
---------
FEDERAL HOME LOAN BANK - 10.6%
37,000 FHLB Note, 5.50%, 7/14/00 36,890
---------
FREDDIE MAC - 11.9%
18,500 Series 2080, Class PE,
6.00%, 11/15/21 17,691
1,240 Pool #410092,
6.996%, 11/1/24 1,285
10,061 Pool #G00767,
7.50%, 8/1/27 9,919
13,905 Pool #C18079,
6.00%, 11/1/28 12,667
---------
41,562
---------
FREDDIE MAC MTN - 12.8%
18,500 5.75%, 7/15/03 17,824
28,000 6.625%, 9/15/09 26,924
---------
44,748
---------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION - 1.5%
$ 220 Pool #268360, 10.00%, 4/15/19 $ 237
259 Pool #270288, 10.00%, 6/15/19 279
61 Pool #270297, 10.00%, 6/15/19 65
100 Pool #302836, 10.00%, 2/15/21 108
4,965 Pool #476998, 6.50%, 7/15/29 4,682
---------
5,371
---------
TENNESSEE VALLEY AUTHORITY - 2.3%
8,000 Series B, Putable 7/15/01,
6.235%, 7/15/45 7,945
---------
Total U.S. Government Agencies
(cost $259,004) 250,107
---------
U.S. GOVERNMENT
OBLIGATIONS - 23.7%
U.S. TREASURY NOTES
16,940 6.625%, 7/31/01 16,969
19,185 5.75% , 10/31/02 18,855
17,315 5.75%, 8/15/03 16,961
28,500 7.50%, 2/15/05 29,800
---------
Total U.S. Government Obligations
(cost $85,176) 82,585
---------
SHORT-TERM INVESTMENT - 4.0%
(cost $13,991)
13,996 FHLB Discount Note,
6.05%, 4/3/00 13,991
---------
Total Investments - 99.4%
(cost $358,171) 346,683
Other Assets less Liabilities - 0.6% 2,058
---------
NET ASSETS - 100.0% $348,741
=========
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
SHORT-INTERMEDIATE U.S. GOVERNMENT FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES - 50.4%
FANNIE MAE REMIC TRUST - 16.4%
$38,469 Series 1998-M2, Class C, I.O.,
7.61%, 2/17/02 $ 619
1,308 Series 1997-M1, Class A,
6.50%, 1/17/03 1,303
2,500 Series 1998-24, Class QB,
6.00%, 9/18/12 2,483
3,253 Pool #440700,
6.00%, 11/1/28 2,962
3,303 Pool #452421,
6.00%, 12/1/28 3,008
---------
10,375
---------
FEDERAL HOME LOAN BANK - 4.6%
3,050 FHLB Bond, 5.50%, 7/14/00 2,951
---------
FREDDIE MAC - 9.8%
3,250 Series 2028, Class-PE,
6.00%, 11/15/21 3,108
297 Pool #410092,
6.996%, 11/1/24 308
1,845 Pool #G00767,
7.50%, 8/1/27 1,819
1,063 Pool #C18035,
6.00%, 11/1/28 968
---------
6,203
---------
FREDDIE MAC NOTE - 8.8%
2,200 6.875%, 1/7/00 2,180
3,500 5.50%, 5/15/02 3,400
---------
5,580
---------
FREDDIE MAC MTN - 6.9%
3,250 6.25%, 10/15/02 3,196
1,250 5.75%, 7/15/03 1,203
---------
4,399
---------
TENNESSEE VALLEY AUTHORITY - 3.9%
2,500 Series B, Putable 7/15/01,
6.235%, 7/15/45 2,483
---------
Total U.S. Government Agencies
(cost $33,119) 31,991
---------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
U.S. GOVERNMENT
OBLIGATIONS - 36.4%
U.S. TREASURY NOTES
$10,000 6.125%, 7/31/00 $10,000
3,000 8.00%, 5/15/01 3,049
5,650 6.625%, 7/31/01 5,660
1,500 7.50%, 11/15/01 1,522
2,950 5.75%, 8/15/03 2,890
---------
Total U.S. Government Obligations
(cost $23,124) 23,121
---------
SHORT-TERM INVESTMENT - 12.3%
(cost $7,822)
7,825 FHLB Discount Note,
6.05%, 4/3/00 7,822
---------
Total Investments - 99.1%
(cost $64,065) 62,934
Other Assets less Liabilities - 0.9% 534
---------
NET ASSETS - 100.0% $63,468
=========
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
INTERMEDIATE TAX-EXEMPT FUND
NORTHERN FUNDS Annual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 97.4%
ALABAMA - 1.8%
$10,360 West Jefferson Amusement & Public Park
Authority Revenue Bond, Visionland Project,
Prerefunded, 8.00%, 12/1/06 $12,297
---------
ALASKA - 1.1%
500 Alaska State Housing Financial Corp.
Revenue Bond, Series B-2, State Capital
Project (MBIA Insured), 5.125%, 12/1/03 503
North Slope Borough Capital Appreciation
G.O. Refunding Bond (MBIA Insured)
3,000 Series A, 0.00%, 6/30/01 2,833
2,200 Series A, 0.00%, 6/30/01 2,077
2,000 Series B, 0.00%, 6/30/01 1,888
---------
7,301
---------
ARIZONA - 2.1%
Arizona Agriculture Improvement and
Power Distribution Electrical Systems
Revenue Refunding Bond, Salt River Project
1,000 Series A, 5.50%, 1/1/05 1,027
2,160 Series A, 6.00%, 1/1/05 2,262
2,000 Maricopa County Unified School District
No. 11 Peoria G.O. Bond, 5.60%, 7/1/07 2,045
5,000 Mesa City Project of 1987 G.O. Bond
(MBIA Insured), Prerefunded,
5.70%, 7/1/08 5,205
3,500 Phoenix City G.O. Refunding Bond,
Series A, 4.90%, 7/1/02 3,523
---------
14,062
---------
ARKANSAS - 0.1%
1,000 Baxter County Hospital Revenue
Refunding Bond,
Series A, 4.70%, 9/1/05 937
---------
CALIFORNIA - 2.1%
5,000 ABAG Financial Authority for Nonprofit
Corps. Multifamily Revenue Refunding
Bond, Series B, United Dominion,
6.25%, Mandatory Put 8/15/08 5,070
3,110 California State G.O. Bond
(AMBAC Insured), 5.00%, 10/1/18 2,900
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
$ 5,500 California Statewide Communities
Development Authority Revenue
Refunding Bond, Series A-2, Irvine
Apartment Communities,
4.90%, Mandatory Put 5/15/08 $ 5,255
1,000 Foothill/Eastern Transportation Corridor
Agency Toll Road Senior Lien Revenue
Bond, Series A, 0.00%, 1/1/05 802
---------
14,027
---------
COLORADO - 5.8%
1,180 Arapahoe County Capital
Improvement Trust Fund Highway
Revenue Bond, Series E-470,
Prerefunded, 6.95%, 8/31/05 1,322
5,040 Arapahoe County School District No. 5
Cherry Creek G.O. Refunding Bond,
Series A, 5.25%, 12/15/04 5,121
1,190 Denver City & County Airport
Revenue Bond, Series E (MBIA Insured),
5.125%, 11/15/15 1,138
3,700 Highlands Ranch Metropolitan District
No. 2 G.O. Bond (FSA Insured),
5.00%, 6/15/16 3,458
5,750 Jefferson County School District No. R-001
G.O. Bond, Series A (FGIC Insured),
6.00%, 12/15/05 6,064
Metropolitan Football Stadium District
Sales Tax Revenue Bond (MBIA Insured)
20,000 Series B, 0.00%, 1/1/04 16,515
5,000 Series A, 0.00%, 1/1/07 3,508
2,000 Metropolitan Wastewater Reclamation
District Gross Revenue Refunding Bond,
Series B (MBIA Insured), 6.75%, 4/1/03 2,111
---------
39,237
---------
CONNECTICUT - 0.9%
6,000 Connecticut State Special Tax Obligation
Transportation Infrastructure Revenue
Bond, Series B, 5.50%, 11/1/05 6,183
---------
DISTRICT OF COLUMBIA - 1.0%
District of Columbia G.O. Bond
(FSA Insured)
1,500 Series A, 5.50%, 6/1/11 1,532
3,670 Series B, 5.50%, 6/1/08 3,718
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
INTERMEDIATE TAX-EXEMPT FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 97.4%
(CONT'D.)
DISTRICT OF COLUMBIA - 1.0% (CONT'D.)
$ 1,700 District of Columbia Revenue Bond,
Georgetown University (MBIA Insured),
4.70%, 4/1/06 $ 1,660
---------
6,910
---------
FLORIDA - 3.6%
1,000 Broward County School District G.O.
Bond, 6.00%, 2/15/06 1,037
1,170 Dade County Public Service Tax
Revenue Bond (FSA Insured),
5.00%, 10/1/01 1,181
3,375 Dade County Water and Sewer System
Revenue Bond (FGIC Insured),
6.25%, 10/1/06 3,623
Florida State Division Bond Finance
Department General Services Revenue
Bond, Environmental Protection
Preservation 2000
770 (AMBAC Insured), 5.50%, 7/1/06 795
3,000 (AMBAC Insured), 5.50%, 7/1/07 3,088
2,500 (FGIC Insured), 4.375%, 7/1/09 2,338
1,000 Heritage Palms Community Development
District Capital Improvement Revenue
Bond, 6.25%, 11/1/04 996
1,000 Inland Protection Financing Corp. Special
Obligation Revenue Bond (FSA Insured),
5.00%, 1/1/04 1,007
5,000 Jacksonville Electric Authority Revenue
Refunding Bond, St. John's River Power
System, 6.50%, 10/1/01 5,123
5,000 Venice City Health Facilities Revenue
Bond, Venice Hospital, Inc. Project,
Prerefunded, 6.00%, 12/1/04 5,315
---------
24,503
---------
GEORGIA - 4.9%
2,500 Atlanta City Airport Facilities Revenue
Refunding Bond (AMBAC Insured),
6.00%, 1/1/04 2,596
5,000 Atlanta City Airport Revenue Bond,
Series A (FGIC Insured), 5.50%, 1/1/22 4,809
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
$ 5,000 Fulton County Facilities Corp. COP Bond,
Fulton County Public Purpose Project,
5.50%, 11/1/18 $ 4,920
Georgia Municipal Electric Authority
Power Revenue Bond, Series Z
(MBIA Insured)
1,155 Escrowed to Maturity,
Prerefunded, 4.90%, 1/1/03 1,159
3,845 Unrefunded Balance, 4.90%, 1/1/03 3,851
Georgia Municipal Electric Authority
Revenue Bond,
10,000 Series CC, 4.60%, 1/1/03 9,845
2,000 Series W, 6.40%, 1/1/07 2,125
1,000 Municipal Electric Authority of Georgia
General Resolution Project Revenue Bond,
Series A (MBIA Insured),
6.00%, 1/1/07 1,051
2,805 Municipal Electric Authority of Georgia
Revenue Bond, Series B, Project One
(AMBAC Insured), 6.00%, 1/1/05 2,923
---------
33,279
---------
HAWAII - 0.5%
3,670 Hawaii G.O. Bond, Series CT,
5.25%, 9/1/05 3,723
---------
ILLINOIS - 8.4%
Champaign County Community
Unified School District No. 116
Urbana G.O. Bond, Series C (FGIC Insured)
3,395 0.00%, 1/1/06 2,511
1,065 0.00%, 1/1/07 745
2,760 0.00%, 1/1/08 1,825
850 0.00%, 1/1/11 466
6,000 Chicago Central Loop Redevelopment Tax
Allocation Bond (AMBAC Insured),
5.25%, 6/1/06 6,063
3,895 Chicago City Board of Education Capital
Appreciation School Reform-B-1 G.O. Bond
(FGIC Insured), 0.00%, 12/1/09 2,301
3,000 Chicago City G.O. Bond (AMBAC Insured),
Prerefunded, 5.90%, 7/1/05 3,178
5,480 Chicago City Park District Parking Facility
Revenue Bond (ACA Insured),
6.25%, 1/1/15 5,628
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
$4,000 Chicago City Public Building Commission
Revenue Bond, Series C (FGIC Insured),
5.375%, 2/1/05 $ 4,063
1,000 Chicago City Wastewater Transmission
Revenue Bond (FGIC Insured),
Prerefunded, 6.30%, 1/1/03 1,057
Chicago City Wastewater Transmission
Revenue Bond (MBIA Insured)
1,000 6.00%, 1/1/14 1,043
1,000 6.00%, 1/1/15 1,038
2,000 Illinois Development Finance Authority
Solid Waste Disposal Revenue Bond (AMT),
Waste Management, Inc. Project,
5.05%, 1/1/10 1,672
Illinois Educational Facilities Authority
Revenue Bond, Northwestern University
4,000 4.80%, Mandatory Put 11/1/06 3,936
3,300 4.95%, Mandatory Put 11/1/08 3,250
2,500 Illinois Educational Facilities Authority
Revenue Bond, Series A (AMBAC Insured),
4.625%, Mandatory Put 9/1/04 2,428
1,750 Illinois Educational Facilities Authority
Revenue Bond, The Art Institute of
Chicago, 4.75%, 3/1/07 1,703
4,000 Illinois Regional Transportation Authority
Revenue Bond, Series A (AMBAC Insured),
Prerefunded, 6.30%, 6/1/04 4,280
2,500 Illinois Sports Facility Revenue Bond,
Series A (MBIA Insured) (AMT),
5.00%, 6/15/09 2,440
Illinois State Development Financing
Authority Economic Development Revenue
Bond, Latin School of Chicago Project
500 5.60%, 8/1/18 461
1,000 5.65%, 8/1/28 895
2,530 Illinois State School District Capital
Appreciation Revenue Bond, Project 304
(FSA Insured), 0.00%, 1/1/07 1,774
Illinois State Toll Highway Authority
Revenue Refunding Bond, Series A,
2,000 4.75%, 1/1/02 2,001
2,000 (FGIC Insured) 5.50%, 1/1/04 2,040
---------
56,798
---------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
INDIANA - 0.5%
$1,500 Indiana Transportation Financing Authority
Airport Facilities Lease Revenue Refunding
Bond, Series A (AMBAC Insured),
6.00%, 11/1/11 $ 1,608
1,500 Tippecanoe County School Building
Revenue Bond (MBIA Insured),
5.50%, 7/15/01 1,519
---------
3,127
---------
IOWA - 1.3%
5,000 Chillicothe PCR Refunding Bond, IES
Utilities, Inc. Project, 4,802
4.25%, Mandatory Put 11/1/03
3,610 Iowa Financing Authority Hospital
Facility Revenue Bond, Mercy Medical
Center Project (FSA Insured),
6.00%, 8/15/15 3,725
---------
8,527
---------
KANSAS - 0.9%
6,500 Burlington Environmental Improvement
Revenue Bond, Series D,
Kansas City Power & Light Co. Project,
4.35%, Mandatory Put 9/1/01 6,397
---------
KENTUCKY - 1.7%
2,665 Carrollton & Henderson County Public
Energy Authority Gas Revenue Bond,
Series A (FSA Insured), 4.00%, 1/1/05 2,386
3,035 Jefferson County Kentucky G.O.
Bond, Series B (FSA Insured),
0.00%, 8/15/03 2,567
1,380 Kentucky Economic Finance Authority
Revenue Bond, Series A, Catholic Health
Project, 5.50%, 12/1/05 1,399
2,570 Kentucky State Property and Buildings
Commission Revenue Refunding Bond,
Project No. 59, 5.00%, 11/1/01 2,588
2,850 Kentucky State Turnpike Authority
Economic Development Road Revenue
Refunding Bond, Revitalization Project,
5.50%, 1/1/01 2,876
---------
11,816
---------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
INTERMEDIATE TAX-EXEMPT FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 97.4%
(CONT'D.)
LOUISIANA - 0.3%
$ 2,000 St. Charles Parish PCR Refunding Bond,
Union Carbide Corp. Project,
5.10%, 1/1/12 $ 1,820
---------
MARYLAND - 0.7%
3,500 Maryland State & Local Facilities Location
G.O. Bond, Third Series,
5.60%, 10/15/05 3,612
1,000 Montgomery County G.O. Bond,
8.60%, 5/1/03 1,109
---------
4,721
---------
MASSACHUSETTS - 3.3%
1,735 Massachusetts State Health & Educational
Facilities Authority Revenue Bond, Series A,
Caregroup, Inc. (MBIA Insured),
5.00%, 7/1/05 1,727
3,625 Massachusetts State Health & Educational
Facilities Authority Revenue Bond,
Series B, Partners Healthcare System,
5.25%, 7/1/12 3,396
1,915 Massachusetts State Health & Educational
Facilities Authority Revenue Bond, Series F,
South Shore Hospital, 5.00%, 7/1/07 1,823
2,625 Massachusetts State Municipal Wholesale
Electric Co. and Power Supply System
Revenue Bond (AMBAC Insured),
5.10%, 7/1/07 2,641
Massachusetts State Water Reserve
Authority General Revenue Bond,
2,500 Series A, 7.25%, 4/1/01 2,550
10,000 Prerefunded, 6.50%, 7/15/02 10,570
---------
22,707
---------
MICHIGAN - 2.0%
Detroit City G.O. Bond,
Self-Insurance Project
2,925 Series A, 5.60%, 5/1/01 2,957
1,000 Series A, 5.70%, 5/1/02 1,013
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
$ 9,000 Michigan State Hospital Financing
Authority Revenue Bond, Series A,
Ascension Health Credit,
6.00%, 11/15/13 $ 9,402
---------
13,372
---------
MISSISSIPPI - 1.4%
Mississippi State G.O. Bond
2,110 Series E, 5.00%, 9/1/03 2,124
2,500 Series B, Refunding Bond,
5.50%, 11/15/04 2,565
4,750 Refunding Bond, 6.05%, 8/15/03 4,931
---------
9,620
---------
MISSOURI - 0.3%
2,000 Missouri State G.O. Bond,
Series A, 7.00%, 4/1/03 2,131
---------
NEBRASKA - 2.9%
American Public Energy Agency Gas
Supply Revenue Bond, Series C,
Nebraska Public Gas Agency
3,350 (AMBAC Insured), 4.00%, 9/1/06 2,999
5,500 (AMBAC Insured), 4.30%, 3/1/11 4,645
11,625 (MBIA Insured), 4.00%, 9/1/08 9,973
2,000 Nebraska Public Power District Revenue
Bond, Series B (MBIA Insured),
5.25%, 1/1/05 2,026
---------
19,643
---------
NEVADA - 0.6%
3,000 Clark County Passenger Facility
Charge Revenue Refunding Bond,
Las Vegas McCarran International
(MBIA Insured), 5.375%, 7/1/13 3,001
1,000 Nevada State Municipal Bond Bank
G.O. Bond, Project No. 3-C, Escrowed
to Maturity, 7.625%, 5/1/01 1,019
---------
4,020
---------
NEW JERSEY - 2.7%
10,940 New Jersey State G.O. Bond, Series E,
5.00%, 7/15/04 11,027
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
$4,875 New Jersey Economic Development
Authority Revenue Bond, Series A,
Transportation Project (FSA Insured),
5.00%, 5/1/05 $ 4,905
New Jersey Health Care Facilities Financing
Authority Palisades Medical Center
Obligation Group Revenue Bond
(ACA Insured)
1,770 5.125%, 7/1/14 1,584
1,000 5.20%, 7/1/19 865
---------
18,381
---------
NEW MEXICO - 1.1%
5,250 Santa Fe City Gross Receipts Tax
Revenue Bond, 6.00%, 6/1/11 5,530
2,000 Santa Fe City Revenue Bond, Series A
(AMBAC Insured),
Prerefunded, 6.30%, 6/1/04 2,108
---------
7,638
---------
NEW YORK - 8.6%
Long Island Power Authority
Electrical Systems Revenue Refunding Bond
6,885 4.00%, 4/1/01 6,846
1,000 4.25%, 4/1/01 998
4,500 5.00%, 4/1/02 4,513
3,815 Metropolitan Transportation Authority
Dedicated Tax Fund Revenue Bond,
Series A (FGIC Insured), 6.125%, 4/1/16 4,015
8,200 New York City G.O. Bond,
Series A, 5.00%, 8/1/05 8,177
3,750 New York City Municipal Water Financing
Authority Water & Sewer Systems Revenue
Bond, Series A (MBIA Insured),
5.625%, 6/15/19 3,730
4,795 New York City Transitional Financing
Authority Future Tax Secured Revenue
Bond, Series B (FGIC Insured),
4.75%, 11/15/13 4,444
New York State Dormitory Authority
Revenue Bond, State University
Educational Facilities
5,000 Series B, 5.50%, 5/15/03 5,084
2,700 Series A, 5.25%, 5/15/05 2,723
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
$2,000 New York State Dormitory Authority
Revenue Refunding Bond
New York State G.O. Refunding Bond,
6.00%, 10/1/06 $ 2,108
1,500 New York State Environmental Facilities
Corp. Revenue Bond, Series A, State
Clean Water & Drinking Revolving Funds,
6.00%, 6/15/16 1,564
New York State G.O. Bond,
2,500 6.625%, 8/1/01 2,568
1,230 (AMBAC Insured), 7.00%, 11/15/02 1,299
1,000 New York State Thruway Authority
Highway & Boarding Trust Fund Revenue
Bond, Series A (FSA Insured), 1,048
6.00%, 4/1/16
2,265 New York State Urban Development Corp.
Revenue Bond, Series B, Correctional
Facilities Services Contract, 5.00%, 1/1/03 2,266
1,250 New York State Urban Development Corp.
Subordinate Lien Revenue Bond,
5.50%, 7/1/16 1,209
5,710 Port Authority New York & New Jersey
Revenue Bond, 119th Series (AMT)
(FGIC Insured), 5.00%, 9/15/03 5,738
---------
58,330
---------
NORTH CAROLINA - 2.2%
North Carolina Eastern Municipal Power
Agency Revenue Bond
1,580 Series A, 5.75%, 1/1/04 1,584
1,500 Series B, Refunding, 6.00%, 1/1/06 1,519
9,425 Series B, Refunding, 6.125%, 1/1/09 9,562
2,505 Series A, Refunding, 5.20%, 1/1/10 2,350
---------
15,015
---------
OHIO - 1.2%
5,000 Ohio State Higher Education Capital
Facilities G.O. Bond, Series A,
5.25%, 2/1/11 5,042
3,605 Ohio State Highway Capital Improvement
G.O. Bond, Series D,
4.25%, 5/1/06 3,428
---------
8,470
---------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
INTERMEDIATE TAX-EXEMPT FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 97.4%
(CONT'D.)
OKLAHOMA - 3.0%
Grand River Dam Authority
Revenue Bond,
$11,000 4.00%, 6/1/04 $10,451
4,850 Refunding, (MBIA Insured),
5.70%, 6/1/05 5,025
Oklahoma Development Financing
Authority Revenue Bond, Series A,
Hillcrest Healthcare System
2,000 4.90%, 8/15/07 1,758
1,000 5.00%, 8/15/09 851
2,740 5.20%, 8/15/11 2,277
---------
20,362
---------
OREGON - 1.2%
1,765 Clackamas and Washington Counties
School District No. 003 G.O. Bond,
7.00%, 8/1/02 1,854
3,000 Oregon State Department Administrative
Services COP Bond, Series A (AMBAC
Insured), 5.00%, 5/1/04 3,018
3,445 Washington County Oregon School
District No. 48J Beaverton G.O. Bond,
5.00%, 8/1/06 3,458
---------
8,330
---------
PENNSYLVANIA - 6.2%
2,565 Allegheny County Port Authority Special
Revenue Bond (MBIA Insured),
6.00%, 3/1/13 2,701
4,225 Erie County Industrial Development
Revenue Bond, Hammermill Paper Co.,
6.30%, 5/15/00 4,230
Pennsylvania Intergovernmental
Cooperative Authority Special Tax
Revenue City of Philadelphia Funding
Program (FGIC Insured),
3,000 Escrowed to Maturity, 6.00%, 6/15/02 3,059
3,300 Prerefunded, 6.75%, 6/15/05 3,577
5,700 Pennsylvania State G.O. Bond,
Second Series, 5.00%, 10/15/05 5,725
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
Pennsylvania State Higher Education
Revenue Bond, Capital Acquisition
(MBIA Insured)
$1,815 6.00%, 12/15/13 $ 1,912
1,925 6.125%, 12/15/14 2,036
300 Pennsylvania State Turnpike Community
Revenue VRB, Series Q (Mellon Bank
Insured), 3.95%, 4/3/00 300
8,000 Philadelphia Authority for Industrial
Development Airport Revenue Bond,
Series A (AMT), Philadelphia Airport System
(FGIC Insured), 5.00%, 7/1/06 7,928
2,630 Philadelphia City Hospitals and Higher
Education Facilities Revenue Bond, Series A,
Jefferson Health System (MBIA Insured),
5.25%, 5/15/11 2,599
6,000 Philadelphia School District G.O.
Refunding Bond, Series D (MBIA Insured),
5.50%, 3/1/07 6,163
1,910 St. Mary Hospital Authority Revenue
Bond, Series A, Bucks County Catholic
Health Initiatives, 5.00%, 12/1/05 1,886
---------
42,116
---------
PUERTO RICO - 1.5%
6,675 Puerto Rico Commonwealth Public
Improvement G.O. Refunding Bond,
0.00%, 7/1/04 5,416
Puerto Rico Municipal Financing Agency
G.O. Bond, Series A (FSA Insured)
4,000 5.50%, 8/1/07 4,166
500 5.75%, 8/1/11 531
---------
10,113
---------
SOUTH CAROLINA - 3.2%
3,500 Columbia Waterworks and Sewer System
Capital Appreciation Revenue Bond,
0.00%, 2/1/03 3,041
3,900 South Carolina State Capital
Improvement G.O. Bond, Series B,
5.75%, 8/1/04 4,048
South Carolina State Public Service
Authority Revenue Refunding Bond,
Series B (FGIC Insured)
8,650 6.50%, 1/1/04 9,115
5,000 6.50%, 1/1/05 5,322
---------
21,526
---------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
TENNESSEE - 2.0%
$1,000 Chattanooga Health, Educational &
Housing Facilities Board Revenue
Refunding and Hospital Improvement
Bond, Siskin Hospital, 5.25%, 6/1/28 $ 795
1,100 Memphis City Electric System Revenue
Refunding Bond, 5.80%, 1/1/03 1,129
2,495 Memphis G.O. Bond, 5.00%, 10/1/08 2,486
2,000 Memphis-Shelby County Tennessee
Airport Authority Revenue Bond,
Series D (AMT) (AMBAC Insured),
6.25%, 3/1/15 2,103
1,800 Shelby County Health Educational
& Housing Facilities Board Revenue
Bond, St. Judes Children's Research,
4.65%, 7/1/04 1,695
1,000 Shelby County Public Improvement &
School G.O. Bond, Series A, 4.50%, 5/1/09 978
5,205 Tennessee Energy Acquisition Corp. Gas
Revenue Bond, Series B (AMBAC Insured),
4.50%, 9/1/08 4,514
---------
13,700
---------
TEXAS - 5.5%
2,700 Austin City Public Improvement
G.O. Bond, 5.50%, 9/1/19 2,637
Austin City Utilities System Revenue
Refunding Bond
3,000 (FSA Insured), 5.125%, 11/15/17 2,813
1,325 Series A (MBIA Insured),
6.00%, 11/15/04 1,384
2,000 Brazos River Authority PCR Refunding
Bond, Series A (AMT), Texas Utilities Co.,
5.00%, Mandatory Put 4/1/00 2,000
2,000 El Paso City Independent School District
Capital Appreciation G.O. Bond (PSF of
Texas Gtd.), 0.00%, 2/15/02 1,824
7,450 Harris County Revenue Refunding Senior
Subordinate Lien Toll Road Bond (AMBAC
Insured), 4.95%, 8/15/06 7,434
2,955 Houston Independent School District
Capital Appreciation Revenue Bond,
Series B, 0.00%, 9/15/01 2,759
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
Lower Colorado River Authority Revenue
Refunding Bond
$ 6,105 Series F, 5.75%, 5/15/12 $ 6,303
3,000 Series A, 5.875%, 5/15/15 3,093
San Antonio City Electric & Gas
Revenue Bond, Series A
5,000 5.00%, 2/1/07 4,988
2,500 5.25%, 2/1/14 2,448
---------
37,683
---------
UTAH - 1.7%
800 Alpine School District G.O. Bond,
5.25%, 3/15/08 811
10,675 Utah State G.O. Bond, Series E,
4.50%, 7/1/04 10,536
---------
11,347
---------
VIRGIN ISLANDS - 0.4%
3,000 Virgin Islands Public Financing Authority
Revenue Bond, Series A, Gross Receipts
Taxes Lien Note, 5.625%, 10/1/10 2,972
---------
VIRGINIA - 3.0%
3,250 Arlington County G.O. Bond,
5.80%, 12/1/02 3,345
3,000 Charles City and County IDA Solid Waste
Disposal Facility Revenue Refunding Bond
(AMT), Waste Management, Inc. Project,
4.875%, 2/1/09 2,515
Fairfax County G.O. Bond, Series C
3,000 4.60%, 5/1/01 3,013
9,100 5.25%, 5/1/08 9,213
2,250 Virginia State G.O. Bond, Series B,
4.60%, 6/1/04 2,235
---------
20,321
---------
WASHINGTON - 5.0%
5,175 King County School District No. 406 South
Central Improvement G.O.
Refunding Bond (FGIC Insured),
5.15%, 12/1/16 4,897
5,020 King County Sewer Revenue Bond,
Second Series (FGIC Insured),
6.25%, 1/1/15 5,324
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
INTERMEDIATE TAX-EXEMPT FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 97.4%
(CONT'D.)
WASHINGTON - 5.0% (CONT'D.)
$1,000 Pierce County School District No. 003
Puyallup G.O. Bond, Series A,
7.75%, 12/1/01 $ 1,049
1,000 Pierce Fife County School District No. 417
G.O. Bond, Series A, 7.85%, 12/1/01 1,048
1,475 Seattle Limited Tax G.O. Bond, Escrowed
to Maturity, 7.00%, 3/1/01 1,511
1,645 Snohomish County School District
No. 015 Edmonds G.O. Bond,
7.00%, 12/1/01 1,706
Washington State Public Power Supply
System Revenue Refunding Bond,
Series A (FSA Insured)
4,645 Nuclear Project No. 1, 5.60%, 7/1/05 4,757
3,640 Nuclear Project No. 3, 5.65%, 7/1/08 3,751
Washington State Convention &
Trade Center COP Bond
4,790 4.70%, 7/1/07 4,593
2,585 4.75%, 7/1/08 2,466
3,000 Washington State Public Power Supply
System Revenue Refunding Bond, Series A,
Nuclear Project No.2 (FGIC Insured),
4.80%, 7/1/06 2,940
---------
34,042
---------
WISCONSIN - 0.7%
4,415 Wisconsin State G.O. Refunding Bond,
Series 3, 6.125%, 11/1/06 4,694
---------
Total Municipal Investments
(cost $670,903) 662,198
---------
NUMBER
OF SHARES VALUE
(000S) (000S)
----------------------------------------------------------------------
OTHER - 1.3%
4,243 AIM Tax Free Cash Reserve Fund $ 4,243
4,215 Provident Municipal Fund 4,214
---------
Total Other
(cost $8,458) 8,457
---------
Total Investments - 98.7%
(cost $679,361) 670,655
Other Assets less Liabilities - 1.3% 8,616
---------
NET ASSETS - 100.0% $679,271
=========
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
SCHEDULES OF INVESTMENTS MARCH 31, 2000
CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 98.9%
CALIFORNIA - 93.9%
$4,400 ABAG Financing Authority For Nonprofit
Corp. Multifamily Housing Revenue
Refunding Bond, Series B, United Dominion,
6.25%, Mandatory Put 8/15/08 $4,462
1,000 Adelanto Public Utility Authority Revenue
Bond, Series A, Utility System Project
(Union Bank of California LOC), 999
4.45%, Mandatory Put 11/1/01
1,000 Arcade Water District Water Revenue COP
Bond (FGIC Insured), 5.00%, 11/1/17 939
2,750 Brea PFA Revenue Tax
Allocation Redevelopment
Project Bond (MBIA Insured),
Prerefunded, 7.00%, 8/1/01 2,893
3,000 California Cities Home Ownership
Authority Lease Revenue Bond, Series A,
Lease Purchase Program (MBIA Insured),
4.15%, 12/1/03 2,939
2,015 California State Department of Veteran
Affairs Home Purchase Revenue Bond,
Series B, 4.90%, 12/1/05 2,022
1,250 California State Department of Water
Resources Revenue Bond, Series O,
CVP Water System, 4.75%, 12/1/16 1,143
2,435 California State Educational Facilities
Authority Revenue Bond, Loyola
Marymount (MBIA Insured),
0.00%, 10/1/02 2,178
California State G.O. Bond
2,000 6.60%, 2/1/10 2,261
4,000 4.50%, 12/1/16 3,531
125 California State Housing Financing
Agency Revenue Bond, Series A,
Home Mortgage (FHA Insured),
7.375%, 8/1/17 130
500 California State Public Works Board
Lease Revenue Refunding Bond, Series A,
California Community Colleges,
5.25%, 12/1/16 485
1,350 California State Public Works Board
Lease Revenue Refunding Bond, Series A,
Department of Corrections State Prisons
(AMBAC Insured), 5.25%, 12/1/13 1,368
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
$3,545 California State Public Works Board
Lease Revenue Refunding Bond, Series A,
Trustees California State University,
5.25%, 10/1/14 $3,499
1,000 California State Public Works Board
Lease Revenue Refunding Bond, Series C,
Various Community College Projects,
5.50%, 9/1/11 1,030
1,000 California Statewide Communities
Development Authority Multifamily
Revenue Refunding Bond, Series E,
Archstone/Oakridge Housing,
5.30%, Mandatory Put 6/1/08 971
2,505 California Statewide Communities
Development Authority Revenue COP Bond,
John Muir/Mount Diablo Health System
(MBIA Insured), 5.50%, 8/15/12 2,594
1,000 Contra Costa County Home Mortgage
Revenue Bond (Colld. by GNMA),
Escrowed to Maturity, 7.50%, 5/1/14 1,210
950 Duarte Redevelopment Agency Single
Family Mortgage Revenue Refunding Bond,
Series B (Colld. by FNMA), Escrowed to
Maturity, 6.875%, 10/1/11 1,093
400 East Bay Municipal Utility District Water
System Revenue Refunding Bond
(FGIC Insured), 6.00%, 6/1/02 414
2,000 Imperial Irrigation District COP Bond,
Electrical Systems Project, 6.50%, 11/1/07 2,225
200 Irvine Ranch Water District G.O.
Refunding VRN, Series B, 4.25%, 4/3/00 200
Los Angeles G.O. Refunding Bond, Series A
850 5.25%, 9/1/12 870
1,375 (FGIC Insured), 5.25%, 9/1/13 1,399
1,500 Los Angeles Convention and Exhibition
Center Authority COP Bond
(AMBAC Insured), 6.70%, 8/15/00 1,516
1,945 Los Angeles County Metropolitan
Transportation Authority Sales TRB,
Proposition A, Series B, 4.50%, 7/1/00 1,949
85 Los Angeles County SFM Revenue Bond,
Issue B (Colld. by GNMA),
7.60%, 8/1/16 87
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 98.9%
(CONT'D.)
CALIFORNIA - 93.9% (CONT'D.)
Los Angeles Department of Water & Power
Electric Plant Revenue Bond
$2,000 6.10%, 2/15/17 $2,052
1,250 Refunding, 6.375%, 2/1/20 1,304
1,275 Crossover Refunding (MBIA Insured),
9.00%, 9/1/02 1,409
800 Los Angeles Unified School District
G.O. Bond, Series B (FGIC Insured),
5.375%, 7/1/15 803
1,000 Metropolitan Water District Southern
California G.O. Refunding Bond,
Series A1, 5.00%, 3/1/01 1,011
3,000 Metropolitan Water District Southern
California Waterworks Revenue Bond,
6.25%, 7/1/01 3,078
850 Mountain View COP Refunding Bond
Revitalization Authority (MBIA Insured),
6.00%, 10/1/16 874
1,000 M-S-R Public Power Agency Revenue
Refunding Bond, Series G, San Juan Project
(MBIA Insured), 5.25%, 7/1/11 1,021
1,280 Northern California Power Agency
Public Power Revenue Refunding Bond,
Series A, Hydroelectric Project No.1
(MBIA Insured), 5.80%, 7/1/02 1,321
2,000 Oakland Joint Powers Financing Authority
Lease Revenue Bond, Oakland
Administration Buildings
(AMBAC Insured), 5.375%, 8/1/10 2,064
1,500 Orange County COP Refunding Bond,
Juvenile Justice Center Facility
(AMBAC Insured), 5.875%, 6/1/02 1,549
1,035 Paso Robles Joint Unified High School
District COP Bond, Measure E, Capital
Projects Phase III, Escrowed to Maturity,
5.30%, 8/1/01 1,051
1,000 Rancho Water District Financing Authority
Revenue Refunding Bond (AMBAC Insured),
5.00%, 8/15/14 973
1,000 Riverside Water Revenue Bond,
9.00%, 10/1/02 1,109
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
Sacramento Municipal Utility District
Electric Revenue Refunding Bond, Series C
$1,060 (MBIA Insured), 5.60%, 11/15/02 $1,095
200 Escrowed To Maturity, 5.60%, 11/15/02 207
1,000 San Diego County COP Bond, Burnham
Institute, 5.70%, 9/1/11 1,019
1,050 San Diego Unified School District COP
Bond, Series A, Capital Projects Phase VX,
4.60%, 7/1/01 1,055
750 San Diego Unified School District COP
Bond, Series A, Escrowed to Maturity,
6.10%, 7/1/01 767
1,000 San Diego Unified School District G.O.
Bond, Series A (FGIC Insured),
0.00%, 7/1/05 782
1,500 San Diego Unified School District COP
Bond, Series B, Capital Projects, Escrowed
to Maturity, 6.00%, 7/1/03 1,537
750 San Francisco City and County G.O. Bond,
Educational Facilities, Series A, Community
College, 5.50%, 6/15/11 780
San Francisco City and County Airport
Commission International Airport
Revenue Bond,
740 Second Series, Series 18B, 5.00%, 5/1/13 729
500 Refunding, Series 20, 4.75%, 5/1/15 465
1,545 San Francisco City and County G.O. Bond,
School District Facilities Improvement,
Series D (FGIC Insured), 7.00%, 6/15/02 1,630
1,000 San Marino Unified School District
G.O. Bond, Series B, 5.25%, 7/1/20 971
2,000 San Mateo County Joint Powers Authority
Lease Revenue Refunding Bond, Series A,
Capital Projects (FSA Insured),
5.00%, 7/15/16 1,906
1,535 Santa Clara County Financing Authority
Lease Revenue Bond, Series A
(AMBAC Insured), Multiple Facilities
Project, 4.40%, 5/15/10 1,458
1,000 Santa Rosa Wastewater Revenue Refunding
and Subregional Wastewater Project Bond,
Series A (FGIC Insured), 4.75%, 9/1/16 916
2,100 Southern California Public Power
Authority Power Project Revenue Bond,
6.75%, 7/1/12 2,400
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
$ 2,250 Turlock Irrigation District Revenue
Refunding Bond, Series A, 6.00%, 1/1/20 $ 2,250
Union Elementary School District
G.O. Bond Series A,
1,340 0.00%, 9/1/01 1,255
715 0.00%, 9/1/03 602
Washington Township Health Care
District Revenue Bond
100 4.25%, 7/1/05 96
705 4.50%, 7/1/07 674
250 5.00%, 7/1/09 242
---------
86,862
---------
PUERTO RICO - 3.9 %
800 Puerto Rico Commonwealth Highway and
Transportation Authority Highway
Revenue Bond, Series X, Permanent
Fixed Option Receipts, 5.20%, 7/1/03 809
2,000 Puerto Rico Commonwealth Infrastructure
Financing Authority Special Tax Revenue
Refunding Bond, Series A
(AMBAC Insured), 5.25%, 7/1/10 2,043
750 Puerto Rico Public Buildings Authority
Revenue Bond, Series B, Government
Facilities (MBIA Insured), 5.00%, 7/1/15 719
---------
3,571
---------
VIRGIN ISLANDS - 1.1%
1,000 Virgin Islands Public Financing Authority
Revenue Bond, Series A, Gross Receipts
Taxes Lien Note, 5.625%, 10/1/10 991
---------
Total Municipal Investments
(cost $90,570) 91,424
---------
NUMBER
OF SHARES VALUE
(000S) (000S)
-----------------------------------------------------------------------
OTHER - 1.4%
(cost $1,299)
1,299 Provident Municipal Cash Fund $ 1,299
---------
Total Investments - 100.3%
(Cost $91,869) 92,723
Liabilities less Other Assets - (0.3)% (253)
---------
NET ASSETS - 100.0% $92,470
=========
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
FLORIDA INTERMEDIATE TAX-EXEMPT FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 94.3%
FLORIDA - 75.0%
$1,000 Dade County Refunding Bond
(FGIC Insured), 12.00%, 10/1/02 $1,170
500 Dade County Sales TRB (AMBAC Insured),
6.00%, 10/1/01 512
400 Dade County Seaport Revenue Refunding
Bond (MBIA Insured), 6.50%, 10/1/10 445
150 Duval County School District G.O.
Bond, Series 1992 (AMBAC Insured),
6.125%, 8/1/04 157
1,000 Florida State Board of Education
Capital Outlay G.O. Refunding Bond,
Series B, Public Education, 5.125%, 6/1/09 1,002
100 Florida State Board of Education
Capital Outlay Revenue Bond, Series 1992 B,
Prerefunded, 5.30%, 6/1/02 102
4,295 Florida State Board of Education
Lottery Revenue Bond, Series A
(FGIC Insured), 5.375%, 7/1/14 4,318
1,000 Florida State Board of Education Revenue
Bond, Series C, Escrowed to Maturity,
6.00%, 5/1/03 1,006
Florida State Division Bond Finance
Department of General Services Revenue
Bond, Environmental Protection-
Preservation
2,000 2000-A, 5.375%, 7/1/11 2,037
1,265 2000-B, 5.25%, 7/1/12 1,267
200 Florida State Municipal Power Agency
Revenue Bond, Power Supply Project
(AMBAC Insured), Prerefunded,
6.25%, 10/1/01 209
350 Florida State Municipal Power Agency
Revenue Bond, St. Lucie Project
(FGIC Insured), 5.40%, 10/1/05 357
250 Florida State Sunshine Skyway
Revenue Refunding Bond, Series 1991,
6.40%, 7/1/04 258
1,000 Gainesville City Utility Systems
Revenue Refunding Bond,
Series 1979 A, 6.20%, 10/1/02 1,015
1,000 Heritage Palms Community Development
District Capital Improvement Revenue
Bond, 6.25%, 11/1/04 996
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
$1,780 Hillsborough County IDA IDR Health
Facilities Project, Series A, University
Community Hospital Bond, 4.50%, 8/15/03 $1,739
500 Jacksonville City Health Facilities Authority
Revenue Bond, Series A, Charity Obligation
Group Project (MBIA Insured), 5.00%, 8/15/11 490
100 Kissimmee City Utility Authority Electric
System Revenue Refunding Bond, Series
1991 (FGIC Insured), Prerefunded,
6.50%, 10/1/01 105
Kissimmee Suburban Water & Sewer
System Revenue Bond (AMBAC Insured),
185 Prerefunded, 5.75%, 10/1/01 190
265 Unrefunded Balance, 5.75%, 10/1/01 270
500 Manatee County Public Utilities Revenue
Bond, Series 1991 A (MBIA Insured),
Prerefunded, 6.75%, 10/1/01 526
1,000 Manatee County School Boards COP Bond,
Series 1998 A (MBIA Insured), 4.85%, 7/1/12 950
1,200 Marion County Hospital District Revenue
Refunding & Improvement Bond, Health
Systems, Monroe Regional Medical Center,
4.625%, 10/1/03 1,173
Miami-Dade County Aviation Revenue
Bond, Series B, Miami International Airport
580 5.45%, 10/1/15 582
1,000 5.40%, 10/1/14 1,006
1,000 Miami-Dade County Special Obligation
Refunding Subordinate Bond, Series 1997 A
(MBIA Insured), 0.00%, 10/1/14 441
625 Orange County HFA Revenue Bond,
Series 1999 G (AMT), 5.20%, 9/1/14 571
2,500 Orange County Tourist Development
Tax Revenue Refunding Bond
(MBIA Insured), 5.00%, 10/1/18 2,315
100 Orlando City Utility Commission
Water and Electric Revenue Refunding
Bond, Series 1992, 5.75%, 10/1/05 104
250 Palm Beach County G.O. Refunding Bond,
Series B, 6.50%, 7/1/10 279
1,000 Palm Beach County School Board COP Bond,
Series A (FGIC Insured), 6.00%, 8/1/17 1,043
Reedy Creek Improvement District Bond,
Series 1991 A,
50 Prerefunded, 6.00%, 6/1/01 51
200 Unrefunded Balance, 6.00%, 6/1/02 205
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
$ 200 Sunrise City Utility Systems Revenue
Capital Appreciation Bond, Series 1996 A
(AMBAC Insured), 0.00%, 10/1/01 $ 187
1,000 Tampa Bay Water Systems Revenue Bond
(FGIC Insured), 0.00%, 10/1/06 717
1,000 Tampa Bay Water Utility System Revenue
Bond (FGIC Insured), 5.50%, 10/1/17 999
750 Tampa City Sports Authority Revenue
Bond, Stadium Project (MBIA Insured),
6.00%, 1/1/06 790
1,035 Tampa Hospital Capital Improvement
Revenue Bond, Series 1999 A, 4.75%, 7/1/11 914
1,000 West Orange Healthcare Revenue Bond,
Series A, 5.25%, 2/1/03 997
---------
31,495
---------
MAINE - 0.3%
120 Regional Waste System Industrial Solid
Resources Recovery Revenue Bond,
Series P, 5.375%, 7/1/05 121
---------
MASSACHUSETTS - 2.2%
1,000 Massachusetts State Health and Educational
Facilities Revenue Bond, Group A,
5.25%, 7/1/07 926
---------
NORTH CAROLINA - 3.3%
1,400 North Carolina Eastern Municipal Power
Agency Power Systems Revenue Bond,
Series A, 5.75%, 1/1/04 1,404
---------
PUERTO RICO - 11.1%
1,000 Puerto Rico Commonwealth Public
Improvement Capital Appreciation G.O.
Refunding Bond, 0.00%, 7/1/04 811
Puerto Rico Industrial, Tourist, Educational,
Medical & Environmental Central Facilities
Revenue Refunding Bond, Series A,
San Lucas & Cristo Project
385 4.65%, 6/1/01 382
435 4.80%, 6/1/02 428
595 4.90%, 6/1/03 579
1,000 Puerto Rico Municipal Financing Agency
G.O. Bond, Series A (FSA Insured),
6.00%, 8/1/15 1,059
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
$1,400 Puerto Rico Public Buildings Authority
Guaranteed Public Education and Health
Facilities Revenue Refunding Bond,
Series M (Commonwealth Gtd.),
5.20%, 7/1/02 $ 1,415
---------
4,674
---------
VIRGIN ISLANDS - 2.4%
1,000 Virgin Islands Public Finance Authority
Revenue Bond, Gross Receipts Taxes Lien
Note, Series A, 5.625%, 10/1/10 990
---------
Total Municipal Investments
(cost $39,828) 39,610
---------
NUMBER
OF SHARES
(000S)
----------
OTHER - 12.3%
29 Dreyfus Tax-Exempt Cash Management
Fund No. 264 29
5,122 Federated Tax Free Trust Money
Market Fund No. 15 5,122
---------
Total Other
(cost $5,151) 5,151
---------
Total Investments - 106.6%
(cost $44,979) 44,761
Liabilities less Other Assets - (6.6)% (2,785)
---------
NET ASSETS - 100.0% $41,976
=========
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
FIXED INCOME FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
ASSET-BACKED SECURITIES - 14.0%
$8,610 California Infrastructure SCE-1
Series 1997-1, Class A4,
6.22%, 3/25/04 $8,489
5,815 California Infrastructure PG&E-1,
Series 1997-1, Class A5,
6.25%, 6/25/04 5,728
4,038 Chevy Chase Auto Receivables Trust,
Series 1997-2, Class A,
6.35%, 1/15/04 4,014
5,470 Commercial Mortgage Asset Trust,
Series 1999-C1, Class A3,
6.64%, 9/17/10 5,120
7,010 CS First Boston Mortgage Securities Corp.,
Series 1998-C2, Class A1,
5.96%, 12/15/07 6,630
2,597 Delta Funding Mortgage Corp., I.O.,
Series 1991-1, Class A-4,
7.50%, 3/15/06<F1> 10
82 DLJ Mortgage Acceptance Corp., I.O.,
7.50%, 11/12/21<F1> 83
8,830 First Union-Lehman Brothers-Bank of
America, Series 1998-C2, Class A2,
6.56%, 11/18/08 8,332
6,660 GMAC Commercial Mortgage
Securities, Inc.,
Series 1999-C3,Class A1B,
7.273%, 8/15/09 6,543
2,674 IMC Excess Cashflow Securities Trust,
Series 1997-A, Class A,
7.41%, 11/26/28<F1> 1,070
7,400 LB Commercial Conduit Mortgage Trust,
Series 1998-C4, Class B,
6.36%, 10/15/08 7,051
Morgan Stanley Capital I,
1,100 Series 1998-WF1, Class A2,
6.55%, 12/15/07 1,041
8,695 Series 1999-LIFE, Class A2,
7.11%, 7/15/09 8,449
4,405 Mortgage Capital Funding, Inc.
Series 1998-MC1, Class A2,
6.66%, 1/18/08 4,175
5,365 Nationslink Funding Corp.,
Series 1999-1, Class A2,
6.32%, 11/20/08 4,976
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
$ 7,153 Olympic Automobile Receivables Trust,
Series 1997-A, Class A4,
6.625%, 12/15/02 $ 7,155
1,179 PNC Mortgage Securities Corp.,
7.06%, 4/28/27<F1> 1,037
196 Residential Asset Securitization Trust,
Series 1997-A8 C, Class A3,
7.00%, 10/25/27 195
10,000 Yosemite Securities Trust I,
8.25%, 11/15/04<F1> 9,967
---------
Total Asset-Backed Securities
(cost $95,132) 90,065
---------
CORPORATE/GOVERNMENT BONDS
AND NOTES - 41.8%
AIRLINES - 1.9%
12,000 Continental Airlines, Inc.,
Series 2000-1, Class A-1,
8.05%, 11/1/20 12,084
---------
BANKS - 3.0%
15,300 Bank One Corp., 6.40%, 8/1/02 14,985
4,225 First Union Corp., 7.70%, 2/15/05 4,275
---------
19,260
---------
BEVERAGES - 3.1%
Coca-Cola Enterprises
1,473 7.00%, 10/1/26 1,436
4,250 6.70%, 10/15/36, Putable 10/15/03 4,163
Diageo Capital PLC
10,755 6.625%, 6/24/04 10,530
3,900 7.45%, 4/15/35 3,918
---------
20,047
---------
COMPUTER SERVICES - 0.7%
4,825 Electronic Data Systems,
6.85%, 10/15/04 4,763
---------
DIVERSIFIED FINANCIAL SERVICES - 14.7%
15,870 Asian Development Bank,
6.375%, 10/1/28 15,465
108 Berkshire Hathaway, Inc.,
9.75%, 1/15/18 112
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
$15,810 CIT Group, Inc., 5.85%, 5/26/00 $15,430
4,175 DaimlerChrysler North American Holdings,
7.20%, 9/1/09 4,070
17,500 Ford Motor Credit Co.,
6.00%, 1/14/03 16,870
5,125 General Motors Acceptance Corp.,
5.85%, 1/14/09 4,547
Green Tree Financial Corp.
962 Series 1994-B, Class A, 7.85%, 7/15/04 958
2,700 Series 1986-9, Class A, 7.69%, 1/15/28 2,683
2,700 Series 1997-6, Class B1, 7.17%, 1/15/29 2,504
12,385 Heller Financial Commercial Mortgage
Association, Series 2000-PH1, Class A2,
7.75%, 11/15/09 12,554
5,125 Household Finance Corp.,
5.875%, 2/01/09 4,503
6,560 Textron Financial Corp.,
7.125%, 12/9/04 6,493
8,555 Transamerica Finance Corp.,
7.25%, 8/15/02 8,493
---------
94,682
---------
ENVIRONMENTAL CONTROLS - 0.9%
6,610 Waste Management, Inc., 7.10%, 8/1/26 6,101
---------
FANNIE MAE - 7.2%
FNMA
17,995 5.625%, 5/14/04 17,064
23,995 5.25%, 1/15/09 20,951
8,325 7.25%, 1/15/10 8,381
---------
46,396
---------
INSURANCE - 1.7%
3,340 American General Finance Corp., Series F,
7.45%, 1/15/05 3,338
2,900 Anthem Insurance, Inc., 9.00%, 4/1/27<F1> 2,793
Lumberman's Mutual Casualty Co.
3,910 9.15%, 7/1/26<F1> 3,925
765 8.45%, 12/1/97<F1> 659
---------
10,715
---------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
SPECIAL PURPOSE - 3.0%
$ 3,080 Bunge Trade Ltd., 9.25%, 5/1/02<F1> $ 3,030
10,000 Air 2 US, 8.027%, 10/1/19<F1> 10,006
6,200 US West Capital Funding, Inc.,
6.875%, 8/15/01 6,162
---------
19,198
---------
TELEPHONE - 2.9%
7,600 AT&T Corp., 6.00%, 3/15/09 6,869
5,625 Sprint Capital Corp., 6.50%, 11/15/01 5,561
5,845 Vodafone AirTouch PLC,
7.75%, 2/15/10<F1> 5,957
---------
18,387
---------
TRANSPORTATION - 1.8%
Burlington Northern Santa Fe Corp.
6,000 7.29%, 6/1/36, Puttable 6/1/08 5,755
5,950 6.53%, 7/15/37 5,666
---------
11,421
---------
UTILITIES - 0.9%
5,735 PP&L Transition Bond Co. LLC,
Series 1999-1, Class A5,
6.83%, 3/25/07 5,639
---------
Total Corporate/Government Bonds
and Notes (cost $278,316) 268,693
---------
U.S. GOVERNMENT
AGENCIES - 24.6%
COLLATERALIZED MORTGAGE OBLIGATIONS - 0.2%
662 FHLMC
Series 1248, Class B, 7.00%, 3/15/22 649
9,829 FNMA REMIC Trusts,
Series 1997-20, I.O., 8.00%, 3/25/27 655
---------
1,304
---------
MORTGAGE BACKED SECURITIES - 24.4%
4,405 FHLMC - Gold, Pool C00835,
6.50%, 7/01/29 4,134
12,260 FHLMC - Gold, Pool C18079,
6.00%, 11/1/28 11,168
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
FIXED INCOME FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
U.S. GOVERNMENT
AGENCIES - 24.6% (CONT'D.)
MORTGAGE BACKED SECURITIES - 24.4% (CONT'D.)
$25,788 FNMA, Pool 440700,
6.00%, 11/1/28 $ 23,483
24,758 FNMA, Pool 452421,
6.00%, 12/1/28 22,545
FNMA TBA
20,000 6.50%, 3/15/28 18,775
30,000 7.50%, 3/15/30 29,480
GNMA I TBA
30,000 6.50%, 3/15/28 28,284
20,000 7.00%, 3/15/30 19,381
---------
157,250
---------
Total U.S. Government Agencies
(cost $163,475) 158,554
---------
U.S. GOVERNMENT
OBLIGATIONS - 12.3%
U.S. TREASURY BONDS/NOTES
10,000 5.75%, 8/15/03 9,795
61,370 7.50%, 11/15/16 69,521
---------
Total U.S. Government Obligations
(cost $77,043) 79,316
---------
FLOATING RATE
BANK NOTES - 1.9%
10,405 Lloyds Bank PLC,
5.63%, 5/15/00 8,525
4,585 National Westminster Bank, Series C,
5.63%, 5/31/00 3,594
---------
Total Floating Rate Bank Notes
(cost $13,045) 12,119
---------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
SHORT-TERM INVESTMENT - 2.5%
(cost $16,101)
$16,101 UBS A.G., Grand Cayman,
Eurodollar Time Deposits,
6.375%, 4/3/00 $ 16,101
---------
Total Investments - 97.1%
(cost $643,112) 624,848
Other Assets less Liabilities - 2.9% 18,586
---------
NET ASSETS - 100.0% $643,434
=========
<F1> These private placement securities may require registration under the
Securities Act of 1933 or an exemption therefrom in order to effect sale in
the ordinary course of business. At March 31, 2000, the value of these
securities amounted to approximately $38,557,000 or 6.0% of net assets.
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
TAX-EXEMPT FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 98.8%
ALABAMA - 0.3%
$2,000 Courtland Industrial Development
Board Solid Waste Disposal Revenue
Bond (AMT), 6.00%, 8/1/29 $ 1,833
---------
ALASKA - 0.4%
2,000 Anchorage G.O. Refunding Bond
(MBIA Insured), 5.00%, 7/1/12 1,948
---------
ARIZONA - 2.8%
1,000 Arizona Student Loan Acquisition
Authority Revenue Bond, Series A-1
(AMT), 5.90%, 5/1/24 998
500 Arizona Student Loan Acquisition
Authority Revenue Refunding Bond,
Series B-1(AMT), 6.15%, 5/1/29 506
1,375 Cochise County University School District
No. 68 Sierra Vista G.O. Bond, Series B
(FGIC Insured), 9.00%, 7/1/03 1,546
700 Maricopa County PCR Bond FRN,
Series D, Arizona Public Service Co.
(Bank of America LOC) 4.05%, 4/3/00 700
3,000 Maricopa County School District No. 41
Gilbert G.O. Bond, 6.25%, 7/1/15 3,042
5,500 Maricopa County School District No. 69
Paradise Valley G.O. Bond, Series B,
8.50%, 7/1/06 6,493
1,500 Maricopa County Unified
School District No.11 G.O. Bond,
Peoria Project 1991, 5.50%, 7/1/10 1,516
---------
14,801
---------
CALIFORNIA - 8.8%
4,000 California Educational Facilities Authority
Capital Appreciation Revenue Bond,
Loyola Marymount (MBIA Insured),
0.00%, 10/1/31 545
4,315 California Health Facility Financing
Authority Revenue Bond, Northern
California Presbyterian, 5.125%, 7/1/18 3,736
2,000 California Pollution Control Financing
Authority PCR Bond, Series B, Southern
California Edison (MBIA Insured),
5.45%, 9/1/29 1,929
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
$ 5,000 California State Public Works Board Lease
Revenue Bond, Series A, 6.10%, 9/1/02 $ 5,194
6,000 California State Public Works Board Lease
Revenue Bond, Series E, Department of
Corrections State Prison, 5.50%, 6/1/15 6,111
3,500 California Statewide Communities
Development Authority Revenue
Refunding Bond, Series A-2,
Irvine Apartment Communities,
4.90%, Mandatory Put 5/15/08 3,344
Kern High School District G.O.
Refunding Bond, Series A (MBIA Insured)
1,845 6.60%, 2/1/17 2,052
1,825 6.60%, 8/1/17 2,029
6,000 Los Angeles Convention & Exhibition
Center Authority Revenue COP,
9.00%, 12/1/20 7,310
6,000 Los Angeles Convention and Exhibition
Center Authority COP, Prerefunded,
9.00%, 12/1/10 7,310
4,125 Los Angeles Department of Water & Power
Electric Plant Revenue Bond,
6.00%, 2/15/16 4,227
1,000 San Diego County COP,
Burnham Institute, 6.25%, 9/1/29 979
1,000 Walnut Valley Unified School District
G.O. Bond, Series A (MBIA Insured),
Escrowed to Maturity, 6.00%, 8/1/13 1,076
---------
45,842
---------
COLORADO - 2.3%
2,000 Colorado Health Facilities Authority
Revenue Bond, Series A, Poudre Valley
Healthcare (FSA Insured), 5.75%, 12/1/23 1,977
3,360 Denver City & County Special Facilities
Airport Revenue Bond, Series A (AMT),
Rental Car Project (MBIA Insured),
6.00%, 1/1/14 3,484
10,000 E-470 Public Highway Authority Capital
Appreciation Revenue Bond, Series B
(MBIA Insured), 0.00%, 9/1/25 2,193
2,000 Interlocken Metropolitan District G.O.
Refunding Bond, Series B, 5.75%, 12/15/19 1,981
3,000 Metropolitan Football Stadium Sales
TRB, Series B (MBIA Insured),
0.00%, 1/1/06 2,224
---------
11,859
---------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
TAX-EXEMPT FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
98.8% (CONT'D.)
CONNECTICUT - 1.9%
$ 8,625 Connecticut State Special Tax Obligation
Revenue Bond, Series A, Transportation
Infrastructure, 7.125%, 6/1/10 $ 9,875
---------
DISTRICT OF COLUMBIA - 0.7%
4,000 District of Columbia G.O. Bond,
Series A (MBIA Insured), 5.25%, 6/1/27 3,604
---------
FLORIDA - 9.8%
15,950 Broward County G.O. Bond,
10.00%, 7/1/14 22,549
Florida State Board of Education Capital
Outlay G.O. Refunding Bond
2,090 9.125%, 6/1/14 2,785
325 Prerefunded, 9.125%, 6/1/14 429
10,600 Florida State Municipal Power Agency
Revenue Refunding Bond,
Stanton II Project (AMBAC Insured),
4.50%, 10/1/16 9,210
1,840 Heritage Palms Community Development
District Capital Improvement Revenue
Bond, 6.25%, 11/1/04 1,833
3,500 Miami-Dade County School District
G.O. Refunding Bond (FSA Insured),
5.375%, 8/1/13 3,558
6,200 Orlando City Utilities Commission
Water and Electric Revenue Refunding
Bond, Series D, 6.75%, 10/1/17 7,050
2,500 Pinellas County Sewer Revenue Bond
(MBIA Insured), 5.75%, 10/1/05 2,604
1,000 Volusia County Educational Facility
Authority Revenue Bond, Series A,
Embry-Riddle Aeronautical,
5.75%, 10/15/29 932
---------
50,950
---------
GEORGIA - 3.2%
5,000 Atlanta Airport Revenue Refunding Bond,
Series A (FGIC Insured), 5.50%, 1/1/26 4,775
5,800 Fulton County Water & Sewer Revenue
Bond (FGIC Insured), 4.75%, 1/1/28 4,891
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
$ 2,000 Gainesville & Hall County Development
Authority Revenue Bond, Series C,
Senior Living Facility - Lanier Village,
7.25%, 11/15/29 $ 1,916
2,300 Georgia State Municipal Electric
Authority Power Revenue Bond,
Series B (FGIC Insured), 6.375%, 1/1/16 2,533
3,000 Private Colleges & Universities Authority
Revenue Bond, Series A, Emory
University Project, 5.50%, 11/1/31 2,862
---------
16,977
---------
IDAHO - 0.4%
2,000 Power County IDR Bond, FMC Corp.
Project (AMT), 6.45%, 8/1/32 1,934
---------
ILLINOIS - 8.8%
10,000 Chicago City G.O. Bond, Series A
(FGIC Insured), 6.75%, 1/1/35 10,886
Chicago City G.O. Bond, Series B
(AMBAC Insured),
10,250 5.125%, 1/1/15 9,814
7,450 5.125%, 1/1/22 6,824
3,000 Chicago Park District Parking Facility
Revenue Bond (ACA Insured),
6.00%, 1/1/19 2,976
6,455 Chicago Water Revenue Refunding Bond
(FDIC Insured), 4.125%, 11/1/13 5,569
3,350 Illinois Development Finance
Authority PCR Refunding Bond, Series B,
Illinois Power Co. Project (MBIA Insured),
5.40%, 3/1/28 3,115
2,000 Illinois Education Facility Authority
Revenue Bond, Series D (AMBAC Insured),
5.45%, 9/1/14 1,964
Illinois State Development Financing
Authority Economic Development Revenue
Bond, Latin School of Chicago Project
350 5.60%, 8/1/18 323
730 5.65%, 8/1/28 654
2,000 Illinois State Health Facility Authority
Revenue Refunding Bond, Series A, West
Suburban Hospital, 5.75%, 7/1/15 1,786
2,015 Illinois State Student Assistance
Commission Student Loan Revenue Bond,
Series QQ, 3.75%, 9/1/02 1,943
---------
45,854
---------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
INDIANA - 6.0%
$4,200 Hamilton County Public Building
Corporation First Mortgage G.O. Bond,
7.25%, 8/1/13 $ 4,930
2,000 Indiana Health Facility Financing
Authority Hospital Revenue Bond,
Series D, Charity Obligation Group,
4.75%, 11/15/06 1,913
1,810 Indiana State Municipal Power Agency
Supply Systems Revenue Refunding Bond,
Series B (MBIA Insured), 6.00%, 1/1/12 1,930
5,620 Indiana State Office Building Capital
Complex Revenue Bond, Series B
(MBIA Insured), 7.40%, 7/1/15 6,752
3,305 Indiana State Transportation Authority
Airport Finance Lease Revenue Bond,
Series A, 5.50%, 11/1/12 3,278
Indianapolis City Industrial Gas Utility
Revenue Refunding Bond, Series B
(FGIC Insured)
1,740 5.00%, 6/1/06 1,745
2,275 4.00%, 6/1/08 2,092
3,280 3.50%, 6/1/18 2,485
3,000 Indianapolis Local Public Improvement
Capital Appreciation Revenue Bond,
Series E (AMBAC Insured), 0.00%, 2/1/22 806
3,500 Marion County Convention and
Recreational Facility Authority Excise
TRB, Series A (AMBAC Insured),
7.00%, 6/1/21 3,653
2,000 Monroe County Hospital Authority
Revenue Bond, Series B, Bloomington
Hospital Obligation Group (FSA Insured),
6.00%, 5/1/29 2,000
---------
31,584
---------
KANSAS - 0.4%
2,000 Burlington City Environmental
Improvement Revenue Refunding
Bond, Series D, Kansas City Power
& Light Co. Project,
4.35%, Mandatory Put 10/1/17 1,968
---------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
KENTUCKY - 0.3%
$ 1,500 Jefferson County Student Housing
Industrial Building Revenue Bond,
Series A, Collegiate Housing Foundation,
7.125%, 9/1/29 $ 1,472
---------
MASSACHUSETTS - 3.3%
3,000 Massachusetts Bay Transportation
Authority Revenue Bond, Series A,
General Transportation System
(MBIA Insured), 5.50%, 3/1/12 3,076
Massachusetts State Development
Finance Agency Revenue Bond, Series P,
Boston University
2,000 5.375%, 5/15/39 1,737
2,000 6.00%, 5/15/59 1,932
Massachusetts State Health &
Educational Facility Authority
Revenue Bond
1,500 Series B, Partners Healthcare System,
5.125%, 7/1/19 1,290
4,500 Series A, Caritas Christi Obligation
Group, 5.625%, 7/1/20 3,557
2,500 Series A, Partners Healthcare System,
(MBIA Insured), 5.375%, 7/1/24 2,298
3,000 Massachusetts State Water Pollution
Abatement Revenue Bond, Series A,
6.00%, 8/1/19 3,173
---------
17,063
---------
MICHIGAN - 2.6%
10,000 Michigan Municipal Authority Revenue
Bond, Clean Water Revolving Fund,
5.50%, 10/1/21 9,718
5,000 Michigan State Hospital Finance
Authority Revenue Refunding Bond
(MBIA Insured), 4.50%, 10/15/21 4,027
---------
13,745
---------
MISSISSIPPI - 1.9%
10,000 Mississippi State Highway Revenue
Refunding Bond, Series No. 39,
Four Lane Highway Program,
5.25%, 6/1/06 10,152
---------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
TAX-EXEMPT FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
98.8% (CONT'D.)
MONTANA - 0.4%
$2,500 University of Montana Higher Education
Revenue Bond, Series A (MBIA Insured),
4.50%, 11/15/15 $2,192
---------
NEBRASKA - 0.9%
5,500 American Public Energy Agency Gas
Supply Revenue Bond, Series C,
Public Gas Agency Project
(AMBAC Insured), 4.30%, 3/1/11 4,645
---------
NEVADA - 1.8%
Las Vegas New Convention & Visitors
Authority Revenue Bond (AMBAC Insured)
5,370 5.75%, 7/1/18 5,398
1,390 6.00%, 7/1/19 1,421
2,540 Nevada State G.O. Refunding Bond,
Project 20-23A, Escrowed to Maturity,
7.20%, 7/1/06 2,562
---------
9,381
---------
NEW JERSEY - 0.6%
1,500 New Jersey State Health Care Facilities
Finance Authority Revenue Bond,
Palisades Medical Center Obligation
Group (ACA Insured), 5.25%, 7/1/28 1,268
2,000 New Jersey State Turnpike Authority
Revenue Refunding Bond, Series A,
6.75%, 1/1/08 2,070
---------
3,338
---------
NEW MEXICO - 0.2%
850 Bernalillo County Gross Receipts
Tax Revenue Refunding Bond,
5.125%, 4/1/15 824
---------
NEW YORK - 13.2%
Long Island Power Authority Electric
System Revenue Bond
1,000 5.00%, 4/1/02 1,003
4,000 Series A (FSA Insured), 5.00%, 12/1/15 3,760
3,470 Series A (AMBAC Insured),
5.25%, 12/1/26 3,186
5,000 Series A, 5.50%, 12/1/29 4,748
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
$3,250 Monroe County Airport Authority
Revenue Refunding Bond (AMT), Greater
Rochester International Airport
(MBIA Insured), 5.375%, 1/1/07 $ 3,285
5,000 New York City Municipal Water
Financing Authority Water and Sewer
System Revenue Refunding Bond,
Series A (MBIA Insured), 5.50%, 6/15/23 4,803
New York City Transitional Finance
Authority Revenue Bond, Series B,
Future Tax Secured
2,000 6.125%, 11/15/15 2,123
4,000 6.00%, 11/15/24 4,086
3,150 New York G.O. Refunding Bond,
Series D, 5.75%, 8/1/07 3,260
New York State Dormitory Authority
Lease Revenue Bond, Series A, State
University Dormitory Facilities
1,115 6.25%, 7/1/20 1,161
1,000 6.00%, 7/1/30 1,008
1,395 New York State Dormitory Authority
Revenue Bond, Series D, Mental Health
Services Facilities, (MBIA Insured),
5.25%, 8/15/17 1,329
New York State Dormitory Authority
Revenue Bond, Victory Memorial Hospital
(MBIA Insured)
1,000 5.25%, 8/1/15 965
500 5.375%, 8/1/25 466
3,000 New York State Dormitory Authority
Revenue Bond, Menorah Home
(AMBAC and FHA Insured), 5.00%, 8/1/18 2,734
20,000 New York State Dormitory Authority
Revenue Bond, Series A, Mt. Sinai School
of Medicine (MBIA Insured),
5.15%, 7/1/24 18,336
New York State Urban Development
Corp. Revenue Refunding Bond
(Colld. by HUD 236)
6,000 5.50%, 7/1/16 5,806
2,000 5.50%, 7/1/22 1,883
4,825 Triborough Bridge & Tunnel Authority
General Purpose Revenue Bond,
Series SR, 5.00%, 1/1/07 4,812
---------
68,754
---------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
NORTH CAROLINA - 7.0%
North Carolina State Eastern Municipal
Power Agency Revenue Refunding Bond
$18,950 Series B, 7.00%, 1/1/08 $20,314
2,655 Series A, Escrowed to Maturity,
6.50%, 1/1/18 2,947
4,000 Series A, 5.75%, 1/1/26 3,599
1,000 Series D, 6.75%, 1/1/26 1,018
North Carolina Municipal Power Agency
No. 1 Catawba Electric Revenue Bond,
5,000 Series A (MBIA Insured), 6.00%, 1/1/08 5,268
3,720 Series B, Unrefunded Balance,
6.00%, 1/1/20 3,534
---------
36,680
---------
OHIO - 1.2%
4,000 Ohio State Turnpike Commission
Revenue Refunding Bond, Series A
(FGIC Insured), 5.50%, 2/15/24 3,917
2,500 Scioto County Marine Terminal Revenue
Refunding Bond, Norfolk Southern Corp.
Project, 5.30%, 8/15/13 2,255
---------
6,172
---------
OKLAHOMA - 2.1%
6,000 McGee Creek Water Authority Revenue
Bond, Series 1992 (MBIA Insured),
6.00%, 1/1/13 6,431
1,750 Oklahoma Industrial Finance Authority
G.O. Bond, Series K, 8.875%, 12/1/15 1,797
3,000 Payne County Economic Development
Student Housing Authority Revenue
Bond, Series A, Collegiate Housing
Foundation, 6.375%, 6/1/30 2,897
---------
11,125
---------
OREGON - 1.1%
Oregon State Bond Bank Revenue Bond,
Series A, Oregon Economic Community
Development Department (MBIA Insured)
2,665 5.50%, 1/1/20 2,624
1,985 5.625%, 1/1/21 1,974
1,000 Oregon State G.O. Bond, Series 66,
10.50%, 6/1/02 1,117
---------
5,715
---------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
PENNSYLVANIA - 1.3%
$1,635 Allegheny County Port Authority Special
Revenue Bond (MBIA Insured),
6.125%, 3/1/29 $1,675
3,000 Montgomery County Higher Education
and Health Authority Revenue Bond,
Series A, Philadelphia Geriatric Center,
7.375%, 12/1/30 2,844
2,300 Pennsylvania State Higher Educational
Facilities Authority Revenue Refunding
Bond FRN, Series C, Carnegie Mellon
University, 3.95%, 4/3/00 2,300
---------
6,819
---------
SOUTH CAROLINA - 0.9%
3,000 Georgetown County Pollution Control
Facilities Revenue Refunding Bond,
Series A, International Paper Co. Project,
5.125%, 2/1/12 2,762
2,115 Piedmont County Municipal Power
Agency Electric Revenue Refunding Bond,
Series A, 6.55%, 1/1/16 2,092
---------
4,854
---------
TENNESSEE - 1.1%
1,500 Chattanooga Health, Educational &
Housing Facilities Board Revenue
Refunding and Hospital Improvement
Bond, Siskin Hospital, 5.25%, 6/1/28 1,193
5,000 Tennessee State Energy Acquisition Corp.
Gas Revenue Bond, Series B
(AMBAC Insured), 4.50%, 9/1/08 4,336
---------
5,529
---------
TEXAS - 9.0%
1,800 Austin Utility System Revenue
Refunding Bond (FSA Insured),
5.125%, 11/15/20 1,651
2,000 Brazos River Authority PCR Refunding
Bond, Series A (AMT), Texas Utility
Electric Co., 3.70%, Mandatory Put 4/1/00 1,998
1,000 Brownsville Naval District Revenue
Refunding Bond, Union Carbide Corp.
Project, 5.10%, 1/1/12 899
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
TAX-EXEMPT FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
MUNICIPAL INVESTMENTS -
98.8% (CONT'D.)
TEXAS - 9.0% (CONT'D.)
$3,290 Carrollton Farmers Branch Independent
School District G.O. Bond (PSF Gtd.),
6.00%, 2/15/14 $3,427
3,500 Colorado River Municipal Water
District Revenue Bond,
Prerefunded, 9.50%, 1/1/01 3,633
1,500 Harris County Health Facilities
Development Corp. Revenue Bond,
Series A, Christus Health, 5.50%, 7/1/09 1,528
2,000 Houston Water & Sewer System Capital
Appreciation Revenue Refunding Bond,
Series A (FSA Insured), 0.00%, 12/1/26 403
2,400 Lamar School District G.O. Bond
(PSF Gtd.), 6.00%, 2/15/13 2,514
5,000 Lower Colorado River Authority
Revenue Refunding Bond, Series A,
5.50%, 5/15/19 4,879
4,500 Matagorda County Navigation District
No. 1 Revenue Bond, Series C,
Reliant Energy, Inc., 5.20%,
Mandatory Put 11/1/02 4,433
1,000 Parker County Hospital District Revenue
Bond, Campbell Health System,
6.25%, 8/15/19 898
San Antonio Electric and Gas Revenue Bond
4,000 Refunding, Series A, 4.50%, 2/1/21 3,321
3,000 Unrefunded Balance, 5.00%, 2/1/12 2,906
1,000 Texas G.O. Refunding Bond, Series A,
6.00%, 10/1/06 1,057
6,000 Texas Public Finance Authority G.O.
Refunding Bond, 5.00%, 10/1/15 5,654
3,000 Texas Water Development Board Revenue
Bond, Series B, State Revolving Fund,
5.00%, 7/15/12 2,912
Waxahachie Independent School District
G.O. Capital Appreciation Refunding
Bond (PSF Gtd.)
5,505 0.00%, 8/15/16 1,997
4,265 0.00%, 8/15/23 936
6,875 0.00%, 8/15/28 1,075
7,140 0.00%, 8/15/30 976
---------
47,097
---------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
UTAH - 0.4%
$2,000 Utah State Intermountain Power Agency
Power Supply Revenue Refunding Bond,
Series B, 6.00%, 7/1/06 $ 2,102
---------
VIRGINIA - 0.4%
2,750 Charles City and County IDA
Solid Waste Disposal Facility Revenue
Bond (AMT), Waste Management, Inc.
Project, 4.875%, 2/1/09 2,305
---------
WASHINGTON - 2.4%
2,000 Chelan County Public Utility District
No. 1 Capital Appreciation Refunding Bond,
Columbia River Rock (MBIA Insured),
0.00%, 6/1/28 370
2,000 King County School District No. 403
G.O. Bond, 6.125%, 12/1/11 2,085
2,500 Seattle G.O. Limited Tax Refunding Bond,
6.50%, 3/1/17 2,564
3,450 Washington State G.O. Bond, Series B,
6.40%, 6/1/17 3,802
3,750 Washington State Public Power Supply
Systems Revenue Refunding Bond,
Series A, Nuclear Project No. 2,
6.50%, 7/1/03 3,888
---------
12,709
---------
WISCONSIN - 0.9%
Monona Grove School District G.O.
Refunding Bond (FGIC Insured)
2,060 6.00%, 5/1/15 2,152
2,220 6.00%, 5/1/16 2,308
---------
4,460
---------
Total Municipal Investments
(cost $509,783) 516,162
---------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
NUMBER
OF SHARES VALUE
(000S) (000S)
-----------------------------------------------------------------------
OTHER - 0.3%
625 AIM Tax Free Cash Reserve Fund $ 625
991 Provident Municipal Fund 991
---------
Total Other
(cost $1,616) 1,616
---------
Total Investments - 99.1%
(cost $511,399) 517,778
Other Assets less Liabilities - 0.9% 4,672
---------
NET ASSETS - 100.0% $522,450
=========
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
ARIZONA TAX-EXEMPT FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 100.0%
ARIZONA - 100.0%
$ 935 Arizona Health Facilities Authority
Hospital System Revenue Bond,
Prerefunded, 7.25%, 11/1/03 $1,012
1,000 Arizona Health Facilities Authority
Hospital System Revenue Bond, Northern
Arizona Healthcare System
(AMBAC Insured), 4.75%, 10/1/30 828
Arizona State Transportation Board Excise
Tax Revenue Refunding Bond, Maricopa
City Regional Area (AMBAC Insured),
1,650 6.00%, 7/1/03 1,712
1,000 6.00%, 7/1/05 1,052
1,500 Arizona State Transportation Board
Highway Revenue Bond, 4.50%, 7/1/03 1,493
2,000 Chandler Street & Highway User Revenue
Bond (MBIA Insured), 5.125%, 7/1/15 1,925
1,180 Coconino & Yavapai Counties Joint
Unified School District No. 9 Sedona-Oak
Creek Project G.O. Bond (FGIC Insured),
5.50%, 7/1/05 1,208
375 Glendale Union School District No. 205,
G.O. Refunding Bond (FGIC Insured),
4.875%, 7/1/12 362
1,000 Lake Havasu City Excise Tax Revenue
Refunding Bond (AMBAC Insured),
4.10%, 6/1/08 912
1,140 Maricopa County IDA Multifamily Housing
Revenue Bond, Series A,
Metro Gardens-Mesa Ridge Project
(MBIA Insured), 4.75%, 7/1/13 1,045
1,500 Maricopa County School District No.
1 G.O. Refunding Bond, Series A, Phoenix
Elementary (FSA Insured), 5.00%, 7/1/14 1,445
Maricopa County School District No.
6 G.O. Bond, Washington Elementary
Projects (FGIC Insured)
1,125 Series B, 4.00%, 7/1/09 1,013
1,265 Series C, 4.00%, 7/1/11 1,109
Maricopa County School District No.
8 Osborn G.O. Bond (FGIC Insured),
1,000 Refunding, 4.70%, 7/1/14 942
2,000 5.875%, 7/1/14 2,069
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
Maricopa County School District No.
11 G.O. Bond, Peoria Unified Projects
$1,000 5.50%, 7/1/10 $1,011
1,000 Series C (FGIC Insured), 4.40%, 7/1/09 930
1,650 Series D (FGIC Insured), 5.25%, 7/1/13 1,645
1,070 Maricopa County School District No. 28
G.O. Bond, Series B, Kyrene Elementary
(FGIC Insured), 6.00%, 7/1/14 1,104
2,000 Maricopa County Unified School
District No. 41 G.O. Bond, Series F, Gilbert
Project (FSA Insured), 5.25%, 7/1/12 2,008
2,300 Maricopa County Unified School District
No. 48 Scottsdale G.O. Refunding Bond,
Series B, 4.50%, 7/1/10 2,168
1,200 Maricopa County School District No.
68 G.O. Bond, Alhambra School
Improvement (AMBAC Insured),
6.35%, 7/1/06 1,292
Maricopa County Unified School District
No. 80 Chandler, G.O. Bond
1,200 (FGIC Insured) Prerefunded, 5.80%, 7/1/05 1,260
1,000 (MBIA Insured) 4.70%, 7/1/12 944
1,330 Refunding (FGIC Insured), 0.00%, 7/1/09 818
175 Maricopa County Unified School District
No. 97 G.O. Bond, Series C, Deer Valley Project
(FSA Insured), 6.125%, 7/1/08 188
Maricopa County Unified High School
District No. 210
G.O. Bond, Phoenix Project,
860 Series C, 5.05%, 7/1/04 868
1,500 Series F, 6.375%, 7/1/06 1,617
1,425 Mesa G.O. Bond (MBIA Insured),
Prerefunded, 5.70%, 7/1/03 1,484
1,000 Mohave County Unified High School
G.O. Bond, Series B (FGIC Insured),
8.50%, 7/1/05 1,160
Phoenix G.O. Bond
745 5.00%, 7/1/09 747
1,500 Series A, Refunding, 4.50%, 7/1/15 1,331
1,000 4.50%, 7/1/22 831
1,100 Series B, Refunding, 4.50%, 7/1/20 929
1,325 Phoenix Civic Improvement Corp.
Excise TRB, Series A, Senior Lien-Municipal
Courthouse Project, 5.75%, 7/1/15 1,362
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
$2,000 Phoenix Civic Improvement Corp.
Wastewater System Lease Revenue
Bond, 5.70%, 7/1/03 $2,055
1,160 Phoenix Civic Plaza Building Corp. Excise
TRB Senior Lien, 5.70%, 7/1/07 1,206
1,300 Pima County Unified School District
No. 6 Marana G.O.
Refunding Bond (FGIC Insured),
4.625%, 7/1/11 1,218
1,900 Pima County Unified School District No.
10 G.O. Bond, Ampitheater School
Improvement, 6.50%, 7/1/05 2,024
Pima County Unified School District
No. 12 Sunnyside G.O. Bond (FGIC Insured),
2,000 5.75%, 7/1/12 2,087
1,000 5.375% 7/1/12 1,011
Salt River Project Agricultural Improvement
& Power District Electrical System,
Revenue Refunding Bond, Series C,
4,345 4.50%, 1/1/04 4,286
2,000 5.00%, 1/1/16 1,865
1,000 Santa Cruz County Unified School District
No. 1 Nogales G.O. Bond, Series B
(AMBAC Insured), Prerefunded,
6.10%, 7/1/04 1,050
1,000 Scottsdale G.O. Bond,
5.00%, 7/1/15 957
1,620 Scottsdale Preservation Authority Excise
TRB (FGIC Insured), 6.00%, 7/1/10 1,735
1,525 Scottsdale Water and Sewer Revenue Bond,
Series E, 5.25%, 7/1/11 1,544
1,235 Sedona Wastewater Municipal
Property Corp. Excise TRB
(MBIA Insured), 5.375%, 7/1/13 1,239
Tucson G.O. Refunding Bond,
745 6.45%, 7/1/07 814
500 (FGIC Insured), 6.40%, 7/1/06 541
900 Tucson Refunding COP (MBIA Insured),
5.00%, 7/1/03 907
---------
Total Municipal Investments
(cost $66,156) 66,363
---------
NUMBER
OF SHARES VALUE
(000S) (000S)
-----------------------------------------------------------------------
OTHER - 0.3%
(cost $243)
243 Provident Municipal Cash
Trust Money Market Fund $ 243
---------
Total Investments - 100.3%
(cost $66,399) 66,606
Liabilities less Other Assets - (0.3)% (229)
---------
NET ASSETS - 100.0% $66,377
=========
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
CALIFORNIA TAX-EXEMPT FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 98.1%
CALIFORNIA - 91.8%
ABAG Finance Authority For Nonprofit
Corps. COP, Channing House
$ 590 4.65%, 2/15/06 $ 548
780 4.90%, 2/15/09 701
2,600 ABAG Finance Authority For Nonprofit
Corps. Multifamily Housing Revenue
Refunding Bond, Series B, United Dominion,
6.25%, Mandatory Put 8/15/08 2,636
1,250 Adelanto Public Utility Authority Revenue
Bond, Series A, Utilities Systems
Projects, (Union Bank of California LOC),
4.45%, Mandatory Put 11/1/01 1,249
2,000 Alameda County Water District Revenue
Refunding Bond (MBIA Insured),
4.75%, 6/1/20 1,769
250 Anaheim PFA Lease Revenue Bond, Series C,
Sub. Public Improvements Project
(FSA Insured), 6.00%, 9/1/09 271
3,600 Anaheim PFA Revenue Bond Electric System
District Facilities (AMBAC Insured), 4.625%,
Mandatory Put 10/1/05 3,584
250 Anaheim PFA Tax Allocation Revenue Bond,
Series A, Redevelopment Project
(MBIA Insured), 5.25%, 2/1/18 242
1,000 California Cities Home Ownership
Authority Lease Revenue Bond,
Series A, Lease Purchase Program
(MBIA Insured), 4.15%, 12/1/03 979
1,000 California Educational Facilities Authority
Revenue Bond, Series A, Pepperdine
University, 5.00%, 11/1/29 886
2,000 California Health Facilities Financing
Authority Revenue Bond, Series A, Northern
California Presbyterian, 5.125%, 7/1/18 1,731
California Health Facilities Financing
Authority Revenue Bond, Sutter Health,
1,000 Series A (MBIA Insured), 5.35%, 8/15/28 936
1,000 Series A (FSA Insured), 5.00%, 8/15/37 864
3,350 California Health Facilities Financing
Authority Revenue Bond, Series A,
Cedars-Sinai Medical Center,
6.125%, 12/1/19 3,364
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
$ 495 California Housing Finance Agency
Home Mortgage Revenue Bond,
Series A (FHA Insured), 7.35%, 8/1/11 $ 514
2,750 California PCR Refunding Bond,
Series B, Southern California Edison Co.
(MBIA Insured), 5.45%, 9/1/29 2,652
1,000 California State Department of
Transportation Refunding Bond COP,
Series A (MBIA Insured), 5.25%, 3/1/16 983
1,250 California State Department of Veterans
Affairs Home Purchase Revenue Bond,
Series B, 5.00%, 12/1/06 1,255
1,000 California State Department of Water
Restoration Revenue Bond, Series O,
CVP Water System, 4.75%, 12/1/16 915
California State G.O. Bond,
150 6.60%, 2/1/10 170
1,000 Refunding, 4.75%, 2/1/29 855
1,300 California State Public Works Board
Lease Revenue Bond, Series A, Department
of Corrections (AMBAC Insured),
5.50%, 1/1/14 1,320
California State Public Works Board Lease
Revenue Refunding Bond, Series C,
Various Community Colleges Projects,
750 Series C, 5.50%, 9/1/11 772
1,000 Series B (AMBAC Insured),
5.625%, 3/1/16 1,008
1,000 California Statewide Communities
Development Authority Multifamily
Housing Revenue Refunding Bond,
Series E, Archstone/Oakridge,
5.30%, Mandatory Put 6/1/08 971
2,000 California Statewide Communities
Development Authority Multifamily
Housing Revenue Refunding Bond,
Archstone/Seascape,
5.25%, Mandatory Put 6/1/08 1,935
1,000 California Statewide Communities
Development Authority Apartment
Development Revenue Refunding Bond,
Series A-2, Irvine Apartment Communities,
4.90%, Mandatory Put 5/15/08 955
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
$1,000 California Statewide Communities
Development Corp. COP, J. Paul Getty Trust,
5.00%, 10/1/10 $1,007
400 Dry Creek Joint Elementary School
District G.O. Bond, Series A (FSA Insured),
0.00%, 8/1/09 250
3,250 East Bay Municipal Utility District Water
System Revenue Bond, 5.25%, 6/1/16 3,198
150 Escondido Unified High School
District G.O. Bond (MBIA Insured),
5.60%, 11/1/09 154
515 Fillmore Unified School District
G.O. Bond, Series A (FGIC Insured),
0.00%, 7/1/10 306
200 Folsom School Facilities Projects
G.O. Bond, Series D (FGIC Insured),
5.70%, 8/1/13 209
295 Fontana Unified School District
G.O. Bond, Series D (FGIC Insured),
0.00%, 5/1/02 294
375 Foothill Eastern Transportation Corridor
Agency Toll Road Senior Lien Revenue
Bond, Series A, 0.00%, 1/1/05 301
1,160 Fremont Unified School District
Alameda County G.O. Refunding Bond,
Series A (FGIC Insured), 0.00%, 8/1/13 570
1,250 Fresno Sewer Revenue Bond,
Series A -1 (AMBAC Insured),
4.75%, 9/1/21 1,101
1,000 Galt Schools Joint Powers Authority
Revenue Refunding Bond,
Series A, High School and
Elementary School Projects,
(MBIA Insured),
5.75%, 11/1/16 1,028
1,600 Imperial Irrigation District COP,
Electrical System Project,
6.50%, 11/1/07 1,780
200 Imperial Irrigation District
Refunding COP, Electrical System Project
(MBIA Insured),
5.20%, 11/1/09 205
200 Lemoore Unified High School
District G.O. Bond (AMBAC Insured),
6.00%, 1/1/12 218
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
$1,000 Los Angeles County Metropolitan
Transportation Authority Sales TRB,
Series B, Proposition C
(AMBAC Insured),
4.75%, 7/1/18 $ 901
1,000 Los Angeles County Public Works
Financing Authority Revenue Bond,
Series A, Regional Park and
Open Spaces District
Project, 5.50%, 10/1/10 $1,044
Los Angeles Department of
Water & Power Electric Plant
Revenue Bond,
1,010 Crossover Refunding,
4.25%, 11/15/14 876
1,500 6.10%, 2/15/17 1,539
2,000 Refunding, 6.375%, 2/1/20 2,087
Los Angeles G.O. Refunding Bond,
1,750 Series A (FGIC Insured), 5.25%, 9/1/13 1,780
425 Series A, 5.25%, 9/1/12 435
40 Los Angeles Harbor Department
Revenue Bond, Escrowed to Maturity,
7.60%, 10/1/18 49
Los Angeles Unified School District
G.O. Bond (FGIC Insured)
450 Series A, 6.00%, 7/1/15 486
1,375 Series B, 5.375%, 7/1/15 1,381
1,000 M-S-R Public Power Agency Revenue
Refunding Bond, Series G,
San Juan Project (MBIA Insured),
5.25%, 7/1/11 1,021
3,000 Metropolitan Water District Southern
California G.O. Crossover Refunding
Bond, Series A1, 5.50%, 3/1/10 3,086
1,000 Metropolitan Water District Southern
California Waterworks Revenue Bond,
Series A, 5.00%, 7/1/26 899
2,500 Mid Peninsula Regional Open Space
District G.O. Refunding Bond,
7.00%, 9/1/14 2,701
1,000 Modesto COP, Water Improvement
Project (AMBAC Insured),
Prerefunded, 6.25%, 10/1/01 1,049
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
CALIFORNIA TAX-EXEMPT FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 98.1%
(CONT'D.)
CALIFORNIA - 91.8% (CONT'D.)
$1,930 Modesto Irrigation District
Refunding COP, Series B,
Capital Improvements Projects,
5.30% 7/1/22 $1,828
1,420 Modesto Refunding COP,
Water Utility System Refinacing Project
(FGIC Insured) 5.125%, 10/1/17 1,358
720 Monrovia Unified School District G.O.
Bond, Series A (MBIA Insured),
0.00%, 8/1/10 425
200 Oakland G.O. Bond, Measure I
(FGIC Insured), 5.60%,12/15/14 205
2,080 Oakland Joint Powers Financing
Authority Lease Revenue Bond
Oakland Administration Buildings
(AMBAC Insured), 5.375%, 8/1/11 2,140
250 Paramount Unified School District
G.O. Bond, Series A (FSA Insured),
5.125%, 9/1/19 235
5,140 Poway Unified School District
Special Tax Community Facilities
District No. 1 Refunding Bond
(MBIA Insured),
4.875%,10/1/17 4,749
1,000 Redding Joint Powers Financing
Authority Electrical Systems
Revenue Bond, Series A
(MBIA Insured),
5.25%, 6/1/15 989
500 Riverside Water Revenue
Refunding Bond,
5.00%,10/1/18 465
1,250 Sacramento County COP Crossover
Refunding Bond, Public Facilities Project
(AMBAC Insured), 4.75%, 10/1/17 1,131
Sacramento Municipal Utility District
Electric Revenue Bond
1,000 Refunding, Series L (AMBAC Insured),
5.20%, 7/1/16 978
3,000 Series M, 5.25%, 7/1/28 2,730
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
$1,530 Salinas Sanitation Sewer Systems
Revenue Bond (FGIC Insured),
5.00%, 8/1/20 $1,409
500 San Diego County COP,
Burnham Institute,
6.25%, 9/1/29 489
1,050 San Diego County Water Authority
Revenue Refunding COP, Series A,
5.00%, 5/1/16 999
450 San Diego Public Facilities Financing
Authority Sewer Revenue Bond,
Series B (FGIC Insured),
5.375%, 5/15/17 445
200 San Diego Unified School District COP,
Series A, Capital Projects,
5.00%, 7/1/00 201
2,500 San Diego Unified School District
G.O. Bond, Series A (FGIC Insured),
0.00%, 7/1/05 1,956
1,000 San Francisco Bay Area Rapid Transit
District Sales Tax Revenue Refunding
Bond, 5.25%, 7/1/17 973
1,000 San Francisco City & County Airport
Commission International Airport
Revenue Refunding Bond,
Series Issue 20 (MBIA Insured),
4.75%, 5/1/15 930
4,250 San Francisco State Building Authority
Lease Revenue Bond, Series A,
Department of General Services Lease,
5.00%, 10/1/13 4,132
2,560 San Joaquin Area Flood Control Agency
Improvement Board Act 1915
Flood Protection and Restoration
Special Assessment Bond
(FSA Insured), 5.60%, 9/2/10 2,607
San Jose Redevelopment Agency
Tax Allocation Bond,
Merged Area Redevelopment Project
(AMBAC Insured),
2,000 4.75%, 8/1/17 1,813
5,000 4.75%, 8/1/29 4,270
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
$ 750 San Marino Unified School District
G.O. Bond, Series B, 5.25%, 7/1/20 $ 728
500 Santa Clara County Financing Authority
Lease Revenue Multiple Facilities Project
Bond, Series A (AMBAC Insured),
4.40%, 5/15/10 475
1,150 Santa Margarita-Dana Point Authority
Revenue Bond, Series B, California
Improvements Districts 3-3a & 4-4a
(MBIA Insured), 7.25%, 8/1/09 1,349
Santa Rosa Wastewater Revenue
Refunding Bond, Series A
(FGIC Insured),
Subregional Project,
200 4.75%, 9/1/16 183
35 5.25%, 9/1/16 35
South San Francisco Capital
Improvements Financing Authority
Revenue Refunding Bond, Series A,
South San Francisco
Redevelopment (ACA Insured)
485 3.85%, 9/1/02 472
1,085 4.20%, 9/1/06 1,031
1,370 4.25%, 9/1/07 1,290
2,000 Southern California Public Power
Authority Power Project Revenue Bond,
Series A, Mead Adelanto Project
(AMBAC Insured), 4.75%, 7/1/16 1,832
1,000 Southern California Public Power
Authority Power Project Revenue
Bond-Linked Floater Adelanto
(AMBAC Insured), 5.15%, 7/1/15 962
1,250 Turlock Irrigation District Revenue
Refunding Bond, Series A, 6.00%, 1/1/20 1,250
Washington Township Health Care
District Revenue Bond,
100 4.25%, 7/1/05 96
405 5.00%, 7/1/09 392
500 5.00%, 7/1/11 477
1,270 5.00%, 7/1/12 1,198
---------
113,247
---------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
PUERTO RICO - 5.1%
$3,000 Puerto Rico Commonwealth
G.O. Refunding Bond,
Public Improvement,
0.00%, 7/1/04 $ 2,434
1,000 Puerto Rico Commonwealth
Highway and Transportation
Authority Revenue Bond,
Series A (AMBAC Insured),
5.00%, 7/1/28 896
2,000 Puerto Rico Commonwealth
Highway & Transportation Authority
Highway Revenue Bond,
Permanent Fixed Option Receipts,
Series X, 5.20%, 7/1/03 2,023
1,000 Puerto Rico Commonwealth
Infrastructure Financing Authority
Special TRB, Series A
(AMBAC Insured), 5.00%, 7/1/21 918
---------
6,271
---------
VIRGIN ISLANDS - 1.2%
1,500 Virgin Islands Public Finance Authority
Revenue Bond, Series A, Gross Receipt
Taxes Lien Note, 5.625%, 10/1/10 1,486
---------
Total Municipal Investments
(cost $122,547) 121,004
---------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
CALIFORNIA TAX-EXEMPT FUND (continued)
NUMBER
OF SHARES VALUE
(000S) (000S)
-----------------------------------------------------------------------
OTHER - 0.7%
2 Federated California Municipal
Cash Trust Money Market Fund $ 2
845 Provident Institutional California
Money Market Fund 845
---------
Total Other
(cost $847) 847
---------
Total Investments - 98.8%
(cost $123,394) 121,851
Other Assets less Liabilities - 1.2% 1,496
---------
NET ASSETS - 100% $123,347
=========
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
SCHEDULES OF INVESTMENTS MARCH 31, 2000
INTERNATIONAL FIXED INCOME FUND
PRINCIPAL AMOUNT/
LOCAL CURRENCY VALUE
(000S) (000S)
-----------------------------------------------------------------------
DEBT OBLIGATIONS - 73.8%
AUSTRALIAN DOLLAR - 1.0%
280 Commonwealth of Australia,
10.00%, 10/15/02 $ 184
---------
BRITISH POUND STERLING - 6.7%
350 BAA PLC, 7.875%, 2/10/07 588
300 Treasury of Great Britain,
8.00%, 6/7/21 689
---------
1,277
---------
CANADIAN DOLLAR - 3.3%
500 Government of Canada,
7.50%, 12/1/03 360
375 Province of Ontario,
7.25%, 9/27/05 268
---------
628
---------
DANISH KRONE - 3.2%
4,210 Kingdom of Denmark,
8.00%, 3/15/06 610
---------
EURO - 35.7%
590 Buoni Poliennali del Tes
5.25%, 11/1/29 520
800 Corp Andina de Fomento,
4.75%, 5/6/04 722
676 Fastnet Securities,
3.847%, 11/15/31 646
600 Federal Republic of Germany,
6.25%, 1/4/24 617
400 Fort James Corp.,
4.75%, 6/29/04 367
300 Halifax Group,
7.627%, 12/9/11 291
600 Haus Ltd.,
3.85%, 12/10/37 574
400 Imperial Tobacco Finance,
6.375%, 9/27/06 378
700 Island Finance,
4.693%, 1/15/15 670
800 Lehman Brothers Holdings PLC,
4.00%, 2/18/03 739
400 Natwest Callable,
6.625%, 10/29/49 376
PRINCIPAL AMOUNT/
LOCAL CURRENCY VALUE
(000S) (000S)
-----------------------------------------------------------------------
330 Republic of Austria,
8.00%, 1/30/02 $ 170
380 Republic of Finland,
5.50%, 2/9/01 187
400 Standard Chartered Bank,
5.375%, 5/6/09 352
227 Treasury of the Netherlands,
8.50%, 3/15/01 226
---------
6,835
---------
JAPANESE YEN - 22.9%
55,000 Asian Development Bank,
5.00%, 2/5/03 600
130,000 Government of Canada,
1.90%, 3/23/09 1,285
180,000 International Bank for
Reconstruction and Development,
4.50%, 3/20/03 1,954
10,000 Japanese Development Bank,
6.50%, 9/20/01 106
45,000 KFW International Finance,
1.00%, 12/20/04 438
---------
4,383
---------
SWEDISH KRONA - 1.0%
1,500 Kingdom of Sweden,
10.25%, 5/5/03 198
---------
Total Debt Obligations - 73.8%
(cost $14,414) 14,115
---------
SHORT-TERM INVESTMENT - 4.3%
(cost $821)
UNITED STATES DOLLAR
$821 UBS A.G., Grand Cayman,
Eurodollar Time Deposits,
6.375%, 4/3/00 821
---------
Total Investments - 78.1%
(cost $15,235) 14,936
Other Assets less Liabilities - 21.9% 4,194
---------
NET ASSETS - 100.0% $19,130
=========
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
HIGH YIELD MUNICIPAL FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 88.6%
ALASKA - 1.2%
$300 Alaska Industrial Development and Export
Authority Power Revenue Bonds (AMT),
Upper Lynn Canal Regional Power,
5.875%, 1/1/32 $ 261
---------
ARIZONA - 5.3%
400 Coconino County Arizona Pollution
Control Corp. Revenue Bonds, Series A
(AMT), Tucson Electric Power
Navajo, 7.125%, 10/1/32 411
300 Gilbert IDA Non-Profit Revenue Bonds,
Series A, Southwest Student Services,
5.85%, 2/1/19 270
500 Peoria Arizona IDA Non-Profit Revenue
Bonds, Series A, Sierra Winds Life,
6.25%, 8/15/20 436
---------
1,117
---------
ARKANSAS - 2.8%
500 Little Rock Arkansas Hotel & Restaurant
Gross Receipts Tax Revenue Refunding
Bonds, 7.375%, 8/1/15 581
---------
CALIFORNIA - 4.6%
500 Sacramento Financing Authority Revenue
Bonds, Series A, Convention Center Hotel
Project, 6.25%, 1/1/30 458
500 San Diego County COP Bonds,
The Burnham Institute, 5.70%, 9/1/11 509
---------
967
---------
COLORADO - 1.3%
250 Denver City & County Airport Revenue
Bonds, Series A,
Prerefunded, 7.25%, 11/15/02 270
---------
CONNECTICUT - 2.1%
500 Connecticut State Development Authority
PCR Refunding Bonds, Series A, Connecticut
Light & Power Co., 5.85%, 9/1/28 447
---------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.6%
$400 District of Columbia Revenue Bonds,
Methodist Home of the District of
Columbia Issue, 6.00%, 1/1/20 $ 344
---------
FLORIDA - 3.4%
500 Heritage Palms Community Development
District Capital Improvement Revenue
Bonds, 6.25%, 11/1/04 498
250 Lee County IDA Health Care Facilities
Revenue Bonds, Series A, Shell Point
Village Project, 5.75%, 11/15/15 214
---------
712
---------
GEORGIA - 2.2%
500 Bibb County Development Authority
Multifamily Revenue Bonds, Series A,
Emerald Coast Housing II, Inc.,
7.25%, 11/1/28 470
---------
IDAHO - 2.3%
500 Power County Idaho Industrial
Development Corp. Solid Waste Disposal
Revenue Bonds (AMT), FMC Corp.,
6.45%, 8/1/32 484
---------
ILLINOIS - 2.1%
500 Chicago O'Hare International Airport
Special Facility Revenue Bonds, Series A,
United Airlines, Inc. Project, 5.35%, 9/1/16 440
---------
INDIANA - 2.0%
500 South Bend Indiana Economic Development
Revenue Bonds, Series A, Southfield
Village, Inc., 6.25%, 11/15/29 421
---------
IOWA - 2.3%
500 Bremer County Health Care & Residential
Facilities Revenue Bonds, Bartels Lutheran
Home Project, 7.25%, 11/15/29 480
---------
KANSAS - 2.3%
500 Olathe Kansas Senior Living Facilities
Revenue Bonds, Series A, Aberdeen
Village, Inc., 8.00%, 5/15/30 493
---------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
SCHEDULES OF INVESTMENTS MARCH 31, 2000
HIGH YIELD FIXED INCOME FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
KENTUCKY - 2.3%
$500 Jefferson County Student Housing
Industrial Building Revenue Bonds, Series A,
Collegiate Housing Foundation,
7.125%, 9/1/29 $491
---------
LOUISIANA - 3.4%
250 St. Charles Parish PCR Refunding Bonds,
Union Carbide Corp. Project,
5.10%, 1/1/12 227
500 West Feliciana Parish PCR Revenue Bonds,
Series A, Entergy Gulf States, Inc.,
5.65% Mandatory Put 9/1/04 492
---------
719
---------
MAINE - 2.4%
500 Maine Finance Authority Solid Waste
Disposal Revenue Bonds (AMT),
Boise Cascade Corp. Project,
7.90%, 6/1/15 509
---------
MASSACHUSETTS - 1.5%
400 Massachusetts State Health & Educational
Facilities Authority Revenue Bonds,
Series A, Caritas Christi Obligated Group,
5.625%, 7/1/20 316
---------
MISSISSIPPI - 2.1%
500 Mississippi Business Finance Corp.
PCR Refunding Bonds, Systems Energy
Resources, Inc. Project, 5.90%, 5/1/22 440
---------
MISSOURI - 2.3%
500 Howard Bend Levee District Special
Tax Bonds, 5.85%, 3/1/19 479
---------
NEVADA - 1.0%
260 Clark County PCR Refunding Bonds,
Series D, Nevada Power Co. Project,
5.45%, 10/1/23 218
---------
NEW JERSEY - 4.3%
500 New Jersey Economic Development
Authority Revenue Bonds, Series A,
Leisure Park Project (Host Marriott
Corp. Gtd.), 5.875%, 12/1/27 403
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
$500 New Jersey Economic Development
Authority Special Facilities Revenue
Bonds (AMT), Continental Airlines, Inc.
Project, 6.625%, 9/15/12 $ 507
---------
910
---------
NEW MEXICO - 2.1%
460 New Mexico Educational Assistance
Foundation Student Loan Revenue Bonds,
Second Subordinate, Series II-C (AMT),
6.00%, 12/1/08 452
---------
NEW YORK - 6.7%
400 New York G.O. Bonds, Series H,
5.25%, 3/15/18 372
New York State Local Government
Assistance Corp. Revenue Bonds,
500 Series A, Prerefunded, 6.70%, 4/1/02 528
500 Series B, Prerefunded, 7.50%, 4/1/01 525
---------
1,425
---------
NORTH CAROLINA - 4.8%
500 North Carolina Eastern Municipal Power
Agency Power System Revenue Refunding
Bonds, Series B, 6.125%, 1/1/09 507
500 North Carolina Municipal Power
Agency No. 1 Catawba Electric Revenue
Bonds, Series B, 6.375%, 1/1/13 505
---------
1,012
---------
OREGON - 2.1%
500 Klamath Falls Oregon Electric Revenue
Refunding Bonds, Senior Lien,
Klamath Cogeneration Project,
5.875%, 1/1/16 448
---------
PENNSYLVANIA - 10.9%
100 Beaver County IDA PCR Refunding
Bonds, Series A, Cleveland Electric
Illuminating Co., 7.75%, 7/15/25 106
270 Delaware County Authority College
Revenue Bonds, Series B, Eastern College,
5.50%, 10/1/24 232
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
HIGH YIELD MUNICIPAL FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 88.6%
(CONT'D.)
PENNSYLVANIA - 10.9% (CONT'D.)
$500 Montgomery County Higher Education &
Health Authority Revenue Bonds,
Series A, Philadelphia Geriatric Center,
7.25%. 12/1/19 $ 474
500 Montgomery County Higher Education &
Health Authority Revenue Bonds, Temple
Continuing Care Center, 6.625%, 7/1/19 446
400 Pennsylvania Economic Development
Financing Authority Exempt Facility
Revenue Bonds, Series A (AMT),
National Gypsum Co.,
Shippingport Project,
6.25%, 11/1/27 363
400 Philadelphia Hospitals and Higher
Education Facilities Revenue Bonds,
Chestnut Hill College, 6.00%, 10/1/29 357
400 Philadelphia Hospitals and Higher
Education Facilities Revenue Bonds,
Temple University Children's Medical
Center, 5.625%, 6/15/19 327
---------
2,305
---------
TEXAS - 5.1%
500 Brazos River Authority PCR
Refunding Bond, Series A,
Texas Utility Electric Co.,
5.00% Mandatory Put 4/1/01 500
150 Houston Airport Systems Revenue Bonds,
Series B (AMT), Special Facilities,
Continental Airlines, Inc.,
6.125%, 7/15/27 131
500 Matagorda County Navigation
District No. 1 Revenue
Refunding Bond, Series B (AMT),
Reliant Energy, Inc. Project,
5.95%, 5/1/30 446
---------
1,077
---------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
VERMONT - 2.1%
$ 500 Vermont Educational & Health Buildings
Financing Agency Healthcare Facility
Revenue Bonds, Copley Manor Project,
6.15%, 4/1/19 $ 434
---------
Total Municipal Investments
(cost $19,999) 18,722
---------
NUMBER
OF SHARES
(000S)
----------
OTHER - 12.6%
(cost $2,653)
2,653 Federated Tax-Free Trust Money Market
Fund No. 15 2,653
---------
Total Investments - 101.2%
(cost $22,652) 21,375
Liabilities less Other Assets - (1.2)% (257)
---------
NET ASSETS - 100.0% $21,118
=========
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
SCHEDULES OF INVESTMENTS MARCH 31, 2000
HIGH YIELD FIXED INCOME FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
CORPORATE BONDS - 88.4%
AEROSPACE - 1.8%
$3,000 Dunlop Standard Aerospace
Holdings PLC, Senior Notes,
11.875%, 5/15/09<F1> $3,030
---------
AIRLINES - 1.2%
2,000 Aircraft Finance Trust
Subordinated Bond, Series 1999 - 1A,
Class D, 11.00%, 5/15/24<F1> 2,000
---------
AUTO PARTS & EQUIPMENT - 2.4%
2,000 JL French Automotive Castings, Inc.
Senior Subordinated Notes,
11.50%, 6/1/09<F1> 1,960
2,000 Lear Corp., 9.50%, 7/15/06 1,940
---------
3,900
---------
BIOTECHNOLOGY - 1.2%
2,000 Bio-Rad Laboratories, Inc., Senior
Subordinated Notes, 11.625%, 2/15/07<F1> 2,005
---------
CHEMICALS - 3.3%
3,000 Avecia Group PLC, 11.00%, 7/1/09 2,962
2,500 Huntsman ICI Chemicals LLC
Senior Subordinated Notes,
10.125%, 7/1/09<F1> 2,413
---------
5,375
---------
COMMERCIAL SERVICES - 5.4%
4,000 Avis Rent A Car, Inc., Senior
Subordinated Notes, 11.00%, 5/1/09<F1> 3,970
2,500 Building One Services Corp., Senior
Subordinated Notes, 10.50%, 5/1/09 2,300
3,000 NationsRent, Inc., Senior Subordinated
Notes, 10.375%, 12/15/08 2,678
---------
8,948
---------
COMPUTERS - 2.1%
1,500 Globix Corp., Senior Notes, 12.50% 2/1/10<F1> 1,380
2,000 S C G Holding Corp., Senior Subordinated
Notes, 12.00%, 8/1/09<F1> 2,140
---------
3,520
---------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
CONSUMER PRODUCTS -1.3%
$2,000 Selmer Co., Inc., Senior Subordinated
Notes, 11.00%, 5/15/05 $2,060
---------
DIVERSIFIED FINANCIAL SERVICES - 1.2%
2,000 Advanta Corp. Medium Term FRN,
5.818%, 7/23/01 1,903
---------
ELECTRIC - 2.4%
2,000 AES Corp. Senior Notes, 9.50%, 6/1/09 1,940
2,000 PSEG Energy Holdings, Inc.
Senior Notes, 10.00% 10/1/09<F1> 2,070
---------
4,010
---------
ELECTRONICS - 1.0%
2,000 Knowles Electronics, Inc., Senior
Subordinated Notes, 13.125%, 10/15/09<F1> 1,720
---------
ENVIRONMENTAL CONTROL - 1.6%
3,500 Allied Waste N.A., Inc., Senior
Subordinated Notes, 10.00%, 8/1/09<F1> 2,660
---------
FOOD & BEVERAGE - 2.5%
1,500 Luigino's, Inc., Senior Subordinated
Notes, 10.00%, 2/1/06<F1> 1,245
3,000 Triarc Consumer Products Group LLC
Senior Subordinated Notes,
10.25%, 2/15/09<F1> 2,835
---------
4,080
---------
GAMING - 4.7%
1,500 Argosy Gaming Co., Senior Subordinated
Notes, 10.75%, 6/1/09<F1> 1,519
2,000 Players International Co.
Senior Notes, 10.875%, 4/15/05 2,075
2,500 Hollywood Casino Shreveport Notes,
13.00%, 8/1/06<F1> 2,650
1,500 Park Place Entertainment, Inc.
Senior Subordinated Notes,
9.375%, 2/15/07<F1> 1,468
---------
7,712
---------
HEALTH CARE - 3.2%
2,500 Dynacare, Inc. Senior Notes,
10.75%, 1/15/06 2,300
3,000 Iasis Healthcare Corp., Senior
Subordinated Notes, 13.00%, 10/15/09<F1> 2,970
---------
5,270
---------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
HIGH YIELD FIXED INCOME FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
CORPORATE BONDS - 88.4% (CONT'D.)
HOME FURNISHING - 1.5%
$2,550 Windmere-Durable Holdings, Inc.,
Senior Subordinated Notes,
10.00%, 7/31/08 $ 2,422
---------
INTERNET - 1.7%
1,500 PSINet, Inc., Senior Notes,
10.50%, 12/1/06<F1> 1,432
1,500 PSINet, Inc., Senior Notes, 11.00%, 8/1/09 1,455
---------
2,887
---------
IRON/STEEL - 0.3%
2,500 Republic Technologies International/
RTI Capital Corp., 13.75%, 7/15/09<F1> 550
---------
MISCELLANEOUS MANUFACTURING - 2.5%
2,000 Gentek, Inc., Senior Subordinated Notes,
11.00%, 8/1/09<F1> 1,990
2,500 Terex Corp., Senior Subordinated Notes,
Series D, 8.875%, 4/1/08 2,200
---------
4,190
---------
MEDIA, CABLE & RADIO - 9.3%
2,500 American Media Operations, Inc.
Senior Subordinated Notes,
10.25%, 5/1/09 2,419
3,000 Charter Communications Holdings LLC
Senior Notes, 8.625%, 4/1/09<F1> 2,895
2,500 Telewest Communications PLC
Senior Notes, 9.875% 2/1/10<F1> 2,456
United Pan-Europe Communications N.V.
Senior Notes,
2,000 Series B, 10.875%, 8/1/09 1,885
1,500 11.25%, 2/1/10<F1> 1,440
2,500 WRC Media Co., 12.75%, 11/15/09<F1> 2,437
2,000 XM Satellite Radio, Inc., 14.00%, 3/15/10<F1> 1,900
---------
15,432
---------
OIL & GAS PRODUCERS AND SERVICES - 3.6%
2,000 Comstock Resources, Inc.
Senior Notes, 11.25%, 5/1/07<F1> 1,940
2,000 Key Energy Services, Inc., Senior
Subordinated Notes, 14.00%, 1/15/09 2,160
2,000 Plains Resources, Inc., Senior
Subordinated Notes, 10.25%, 3/15/06<F1> 1,920
---------
6,020
---------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
PACKAGING - 4.3%
$3,000 Consolidated Container Co., LLC
Senior Subordinated Notes,
10.125%, 7/15/09<F1> $ 2,955
4,000 Stone Container Corp.,
Senior Notes, 11.50%, 10/1/04 4,165
---------
7,120
---------
REAL ESTATE INVESTMENT TRUSTS - 1.7%
2,000 Crescent Real Estate Equities L.P. Notes,
7.00%, 9/15/02 1,829
1,000 Meditrust Co. Notes, 7.375%, 7/15/00 982
---------
2,811
---------
REMEDIATION SERVICES - 1.4%
2,500 IT Group, Inc., Senior Subordinated Notes,
11.25%, 4/1/09<F1> 2,363
---------
STRUCTURED TRADE RECEIVABLE NOTE - 1.2%
2,000 Bunge Trade Ltd. Note, 9.25%, 5/1/02<F1> 1,967
---------
TELECOMMUNICATIONS - 23.9%
2,792 Adelphia Business Solutions, Inc.
12.875%, 10/15/07<F2> 2,764
Allegiance Telecom, Inc.,
1,000 Senior Discount Notes, Series B,
11.75%, 2/15/08 700
1,500 Senior Notes, 12.875%, 5/15/08 1,635
Focal Communications Corp.,
2,000 Senior Discount Notes, Series 1998 B,
12.125%, 2/15/08<F3> 1,290
1,250 Senior Notes, 11.875% 1/15/10 <F1> 1,250
Global Crossing Holding Ltd.,
Senior Notes,
1,500 9.125% 11/15/06<F1> 1,433
2,000 9.625%, 5/15/08 1,940
Leap Wireless,
1,000 Senior Notes, 12.50%, 4/15/10<F1> 500
2,500 Senior Discount Notes, 14.50%, 4/15/10<F1> 2,500
3,000 Level 3 Communications, Inc.,
Senior Notes, 9.125%, 5/1/08 2,865
2,750 Madison River Finance, Senior Notes
13.25% 3/1/10<F1> 2,640
1,000 Maxcom Telecommunications, Inc.
13.75%, 4/1/07<F1> 1,005
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
$ 4,000 Metromedia Fiber Networks, Inc.,
Senior Notes, 10.00%, 12/15/09 $ 3,815
3,000 NEXTLINK Communications, Inc.,
Senior Notes, 10.75%, 6/1/09 2,865
1,500 PTC International Finance,
11.25%, 12/1/09<F1> 1,522
3,000 Rhythms NetConnections,
Senior Notes, 12.75%, 4/15/09<F1> 2,490
2,500 US Unwired, Inc., Senior Discount
Notes, 13.375%, 11/1/09<F1> 1,331
2,500 Williams Communications Group, Inc.,
Senior Notes, 10.875%, 10/1/09 2,475
3,000 Worldwide Fiber, Inc.,
Senior Notes, 12.00%, 8/1/09<F1> 2,835
2,500 21st Century Telecom Group, Inc.,
Senior Discount Notes, 2.25%, 2/15/08<F3> 1,738
---------
39,593
---------
TRANSPORTATION - 1.1%
2,000 RailWorks Corp.,
Senior Subordinated Notes,
11.50%, 4/15/09<F1> 1,880
---------
WATER - 0.6%
1,000 Azurix Corp., Senior Notes,
10.75%, 2/15/10<F1> 995
---------
Total Corporate Bonds
(cost $152,266) 146,423
---------
NUMBER
OF SHARES
(000S)
----------
CONVERTIBLE
PREFERRED STOCK - 0.4%
(cost $883)
15,000 PSINet, Inc. 634
---------
WARRANTS - 0.1%
(cost $0)
2,000 Key Energy Services, Inc., Exp. 1/15/09 180
2,500 Republic Technologies International
Corp., Exp. 7/15/09 -
---------
180
---------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
SHORT-TERM INVESTMENT - 7.6%
(cost $12,554)
$ 12,554 UBS A.G., Grand Cayman,
Eurodollar Time Deposits,
6.375%, 4/3/00 $ 12,554
---------
Total Investments - 96.5%
(cost $165,703) 159,791
Other Assets less Liabilities - 3.5% 5,719
---------
NET ASSETS - 100.0% $165,510
=========
<F1> Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At March 31,
2000, the value of these securities amounted to approximately $84,661,000
or 51.2% of net assets.
<F2> Payment-in-Kind (PIK) note. Currently additional par received in lieu of
interest payments.
<F3> Deferred interest rate note. Currently zero coupon under the terms of
agreement.
See Notes to the Financial Statements.
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES MARCH 31, 2000
EQUITY FUNDS
<TABLE>
<CAPTION>
MID SMALL SMALL INT'L. INT'L.
INCOME STOCK GROWTH SELECT CAP CAP SMALL CAP GROWTH SELECT TECH-
AMOUNTS IN THOUSANDS, EQUITY INDEX EQUITY EQUITY GROWTH INDEX CAP GROWTH EQUITY EQUITY NOLOGY
EXCEPT PER SHARE DATA FUND FUND FUND FUND FUND FUND FUND FUND FUND FUND FUND
------------------------ ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value
(cost $182,807,
$322,032, $884,487,
$351,439, $651,825,
$95,895, $182,852,
$509,859, $662,208,
$248,017 and
$1,930,708,
respectively) $218,025 $545,132 $1,346,702 $514,162 $858,316 $113,340$199,596 $555,237 $706,784 $255,712 $2,854,552
Cash and foreign
currencies - - - 499 - - 440 1 - - -
Income receivable 766 437 451 85 78 99 110 96 1,099 492 151
Receivable for
foreign tax withheld - - - - - - - - 607 155 -
Receivable for
securities sold 2,442 3,301 34,678 23,854 20,644 382 1,287 28,812 8,305 5,465 1,184
Receivable for
fund shares sold 148 792 528 3,821 3,104 8 23 2,863 3,280 408 13,075
Receivable from Adviser 9 14 42 19 23 - 9 5 18 8 13
Prepaid and other assets 9 8 13 7 10 28 4 24 9 3 34
------------------------------------------------------------------------------------------------------------------------------------
Total Assets 221,399 549,684 1,382,414 542,447 882,175 113,857 201,469587,038 720,102 262,243 2,869,009
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Cash Overdraft - 83 12 - 87 - - - 22 - -
Payable for securities
purchased - 2,963 11,310 14,530 21,830 - - 36,086 13,003 4,869 19,400
Payable for fund shares
redeemed 553 902 1,731 3,184 911 94 1,155 181 289 65 6,012
Accrued investment
advisory fees 36 42 225 88 148 11 34 106 133 48 584
Accrued administration
fees 6 16 40 16 26 3 6 16 20 7 88
Accrued custody and
accounting fees 6 - 66 4 - 3 20 - 6 6 -
Accrued transfer
agent fees 4 11 26 10 17 2 4 11 13 5 59
Accrued registration
fees and
other liabilities 40 60 124 39 38 32 42 27 63 31 116
------------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 645 4,077 13,534 17,871 23,057 145 1,261 36,427 13,549 5,031 26,259
------------------------------------------------------------------------------------------------------------------------------------
Net Assets $220,754 $545,607 $1,368,880 $524,576 $859,118 $113,712$200,208 $550,611 $706,553 $257,212 $2,842,750
====================================================================================================================================
ANALYSIS OF NET ASSETS:
Capital stock $171,426 $297,204 $748,545 $314,258 $564,628 $85,781 $145,412$447,470 $588,442 $215,268 $1,426,534
Accumulated
undistributed
(distributions
in excess of)
net investment
income 263 105 - - - 204 216 1 (528) 2,664 -
Accumulated
undistributed net
realized gains on
investments, futures
and foreign currency
transactions 13,847 25,050 158,120 47,595 87,999 10,572 38,206 57,762 74,130 31,585 492,372
Net unrealized
appreciation on
investments, foreign
currency transactions,
forward foreign
currency contracts
and futures contracts 35,218 223,248 462,215 162,723 206,491 17,155 16,374 45,378 44,576 7,695 923,844
Net unrealized losses
on translation
of assets and
liabilities
denominated
in foreign currencies - - - - - - - - (67) - -
------------------------------------------------------------------------------------------------------------------------------------
Net Assets $220,754 $545,607 $1,368,880 $524,576 $859,118 $113,712 $200,208$550,611 $706,553 $257,212 $2,842,750
====================================================================================================================================
SHARES OUTSTANDING
($.0001 PAR VALUE,
UNLIMITED
AUTHORIZATION) 15,478 27,162 53,586 14,623 35,313 9,363 13,691 28,670 49,345 17,666 43,199
NET ASSET VALUE,
REDEMPTION AND
OFFERING PRICE
PER SHARE $14.26 $20.09 $25.55 $35.87 $24.33 $12.15 $14.62 $19.21 $14.32 $14.56 $65.81
</TABLE>
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
STATEMENTS OF OPERATIONS YEAR ENDED MARCH 31, 2000
EQUITY FUNDS
<TABLE>
<CAPTION>
MID SMALL SMALL INT'L. INT'L.
INCOME STOCK GROWTH SELECT CAP CAP SMALL CAP GROWTH SELECT TECH-
EQUITY INDEX EQUITY EQUITY GROWTH INDEX CAP GROWTH EQUITY EQUITY NOLOGY
AMOUNTS IN THOUSANDS FUND FUND FUND FUND FUND FUND FUND FUND FUND FUND FUND
------------------------ ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $1,560 $505 $1,656 $460 $906 $85 $680 $486 $1,597 $615 $1,644
Dividend income 4,732 4,386 6,942 1,345 446 959 3,273 183 5,328 2,640 671
------------------------------------------------------------------------------------------------------------------------------------
Total Investment
Income 6,292 4,891 8,598 1,805 1,352<F1> 1,044 3,953 669 6,925<F2> 3,255<F3> 2,315
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 1,827 2,222 9,775 3,653 3,508 483 3,247 1,396 5,197 2,087 14,200
Administration fees 274 555 1,466 457 526 111 406 175 650 261 1,775
Transfer agent fees 183 370 977 304 351 74 271 116 434 174 1,183
Custody and accounting
fees 68 161 191 95 76 34 128 31 427 216 230
Professional fees 18 21 29 20 19 47 17 33 21 18 31
Registration fees 71 102 200 71 92 33 61 18 92 40 224
Trustees' fees and expenses 6 6 13 7 4 2 8 1 7 5 8
Other 8 19 48 11 8 17 14 2 17 6 49
------------------------------------------------------------------------------------------------------------------------------------
Total Expenses 2,455 3,456 12,699 4,618 4,584 801 4,152 1,772 6,845 2,807 17,700
Less voluntary
waivers of:
Investment advisory
fees (274) (741) (1,466) (1,065) (526) (111) (947) (232) (859) (348) (2,367)
Administration fees (74) (128) (384) (118) (87) - (152) - (153) (73) (265)
Less reimbursement of
expenses by Adviser (280) (550) (1,074) (390) (464) (207) (347) (85) (410) (211) (277)
------------------------------------------------------------------------------------------------------------------------------------
Net Expenses 1,827 2,037 9,775 3,045 3,507 483 2,706 1,455 5,423 2,175 14,791
------------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) 4,465 2,854 (1,177) (1,240) (2,155) 561 1,247 (786) 1,502 1,080 (12,476)
====================================================================================================================================
NET REALIZED AND UNREALIZED
GAINS (LOSSES):
Net realized gains
(losses) on:
Investments 22,120 26,272 207,756 59,938 96,574 10,924 41,152 59,263 101,457 46,810 594,804
Written Options - - - - - - - - - - 198
Futures contracts - 182 (1,176) - - 1,035 2,304 (28) - - -
Foreign currency
transactions - - - - - - - - (336) (147) -
Net change in unrealized
appreciation
(depreciation) on
investments,
foreign currency
transactions, forward
foreign currency
contracts, options
and futures contracts 9,788 33,711 80,025 100,136 191,329 15,367 23,825 45,378 1,996 (2,815) 667,237
Net change in unrealized
gains (losses) on
translation of assets
and liabilities
denominated in foreign
currencies - - - - - - - - (64) 6 -
------------------------------------------------------------------------------------------------------------------------------------
Net Gains on Investments 31,908 60,165 286,605 160,074 287,903 27,326 67,281 104,613 103,053 43,854 1,262,239
------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET
ASSETS RESULTING
FROM OPERATIONS $36,373 $63,019 $285,428 $158,834 $285,748 $27,887 $68,528 $103,827 $104,555 $44,934 $1,249,763
====================================================================================================================================
</TABLE>
<F1> Net of $1 in non-reclaimable foreign withholding taxes.
<F2> Net of $578 in non-reclaimable foreign withholding taxes.
<F3> Net of $257 in non-reclaimable foreign withholding taxes.
See Notes to the Financial Statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
EQUITY FUNDS
<TABLE>
<CAPTION>
INCOME EQUITY STOCK INDEX GROWTH EQUITY SELECT EQUITY
FUND FUND FUND FUND
------------------- ------------------- -------------------- --------------------
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
AMOUNTS IN THOUSANDS 2000 1999 2000 1999 2000 1999 2000 1999
---------------------- ----- ----- ----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment
income (loss) $4,465 $4,077 $2,854 $1,344 $(1,177) $432 $(1,240) $(218)
Net realized gains
(losses) on
investments, options,
futures contracts
and foreign currency
transactions 22,120 1,489 26,454 1,369 206,580 50,510 59,938 1,356
Net change in unrealized
appreciation
(depreciation) on
investments, options,
futures contracts and
forward foreign
currency contracts 9,788 (4,690) 33,711 19,161 80,025 72,564 100,136 38,865
Net change in unrealized
gains (losses)
on translation of assets
and liabilities
denominated in foreign
currencies - - - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets
Resulting from
Operations 36,373 876 63,019 21,874 285,428 123,506 158,834 40,003
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 16,992 25,431 127,722 105,375 152,770 117,092 259,271 70,108
Shares issued upon
conversion 123,163 - 271,446 - 458,132 - - -
Shares from reinvestment
of dividends 8,858 5,955 1,967 1,692 74,208 29,629 9,848 6,988
Shares redeemed (70,056) (21,346) (82,187) (51,049) (162,282) (76,378) (89,448) (36,318)
------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets
Resulting from
Capital Share
Transactions 78,957 10,040 318,948 56,018 522,828 70,343 179,671 40,778
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID:
From net investment
income (4,168) (4,229) (2,756) (1,359) (346) (524) - (93)
From net realized gains (8,822) (5,832) (2,666) (1,378) (79,978) (32,048) (12,459) (8,694)
In excess of net
investment income - (3) - - - (111) - -
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions
Paid (12,990) (10,064) (5,422) (2,737) (80,324) (32,683) (12,459) (8,787)
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS 102,340 852 376,545 75,155 727,932 161,166 326,046 71,994
NET ASSETS:
Beginning of year 118,414 117,562 169,062 93,907 640,948 479,782 198,530 126,536
------------------------------------------------------------------------------------------------------------------------------------
End of year $220,754 $118,414 $545,607 $169,062 $1,368,880 $640,948 $524,576 $198,530
------------------------------------------------------------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED
(DISTRIBUTIONS
IN EXCESS OF) NET
INVESTMENT
INCOME (LOSS) $263 $2 $105 $7 $- $- $- $-
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to the Financial Statements.
<TABLE>
<CAPTION>
NORTHERN FUNDS Annual Report
MID CAP SMALL CAP SMALL SMALL CAP
GROWTH INDEX CAP GROWTH
FUND 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<F1> 2000<F2> 1999 2000 1999<F3>
---------------------------- ----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment
income (loss) $ (2,155) $ (157) $ 561 $ 1,247 $ 799 $ (786)
Net realized gains
(losses) on
investments, options,
futures contracts
and foreign currency
transactions 96,574 (4,313) 11,959 43,456 16,817 59,235
Net change in unrealized
appreciation
(depreciation) on
investments, options,
futures contracts and
forward foreign
currency contracts 191,329 15,162 15,367 23,825 (103,773) 45,378
Net change in unrealized
gains (losses)
on translation of assets
and liabilities
denominated in foreign
currencies - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets
Resulting from
Operations 285,748 10,692 27,887 68,528 (86,157) 103,827
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 551,606 69,910 3,529 78,615 102,033 463,651
Shares issued upon
conversion - - 142,973 - - -
Shares from reinvestment
of dividends 2,107 - 1,399 16,641 10,643 549
Shares redeemed (55,614) (3,224) (60,332) (207,601) (118,770) (16,730)
------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets
Resulting from
Capital Share
Transactions 498,099 66,686 87,569 (112,345) (6,094) 447,470
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID:
From net investment
income - - (342) (1,822) (226) -
From net realized gains (2,107) - (1,402) (18,587) (11,668) (686)
In excess of net
investment income - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions
Paid (2,107) - (1,744) (20,409) (11,894) (686)
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS 781,740 77,378 113,712 (64,226) (104,145) 550,611
NET ASSETS:
Beginning of year 77,378 - - 264,434 368,579 -
------------------------------------------------------------------------------------------------------------------------------------
End of year $859,118 $77,378 $113,712 $200,208 $264,434 $550,611
------------------------------------------------------------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED
(DISTRIBUTIONS
IN EXCESS OF) NET
INVESTMENT
INCOME (LOSS) $- $- $204 $216 $796 $1
==================================================================================================================================
</TABLE>
<F1> Commenced investment operations after the close of business on March 31,
1998.
<F2> Commenced investment operations on September 3, 1999.
<F3> Commenced investment operations after the close of business on September
30, 1999.
See Notes to the Financial Statements.
<TABLE>
<CAPTION>
INTERNATIONAL INTERNATIONAL
GROWTH SELECT EQUITY TECHNOLOGY
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 (loss) $ 1,502 $ 1,017 $1,080 $449 $(12,476) $(1,535)
Net realized gains
(losses) on
investments, options,
futures contracts
and foreign currency
transactions 101,121 30,825 46,663 26,885 595,002 47,533
Net change in unrealized
appreciation
(depreciation) on
investments, options,
futures contracts and
forward foreign
currency contracts 1,996 (6,660) (2,815) (16,563) 667,237 71,473
Net change in unrealized
gains (losses)
on translation of assets
and liabilities
denominated in foreign
currencies (64) (596) 6 (39) - -
------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets
Resulting from
Operations 104,555 24,586 44,934 10,732 1,249,763 117,471
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 268,506 98,745 125,966 55,641 1,179,134 165,211
Shares issued upon
conversion 191,041 - - - 359,270 -
Shares from reinvestment
of dividends 39,478 7,328 20,063 4,765 116,860 4,863
Shares redeemed (61,461) (83,624) (29,324) (58,089) (272,507) (42,504)
------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets
Resulting from
Capital Share
Transactions 437,564 22,449 116,705 2,317 1,382,757 127,570
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID:
From net investment
income - - (3,177) - - -
From net realized gains (43,373) (7,589) (25,637) (6,110) (133,479) (5,721)
In excess of net
investment income (7,849) (2,000) (126) (44) - -
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions
Paid (51,222) (9,589) (28,940) (6,154) (133,479) (5,721)
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS 490,897 37,446 132,699 6,895 2,499,041 239,320
NET ASSETS:
Beginning of year 215,656 178,210 124,513 117,618 343,709 104,389
------------------------------------------------------------------------------------------------------------------------------------
End of year $706,553 $215,656 $257,212 $124,513 $2,842,750 $343,709
------------------------------------------------------------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED
(DISTRIBUTIONS
IN EXCESS OF) NET
INVESTMENT
INCOME (LOSS) $(528) $(1,270) $2,664 $513 $- $-
==================================================================================================================================
</TABLE>
<F1> Commenced investment operations after the close of business on March 31,
1998.
<F2> Commenced investment operations on September 3, 1999.
<F3> Commenced investment operations after the close of business on September
30, 1999.
FINANCIAL HIGHLIGHTS
EQUITY FUNDS
<TABLE>
<CAPTION>
INCOME EQUITY
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
-------------------------------- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF YEAR $12.73 $13.81 $11.81 $11.59 $9.95
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.31 0.46 0.45 0.44 0.34
Net realized and unrealized gains
(losses) on investments,
options, futures contracts
and foreign currency transactions 2.02 (0.41) 3.02 1.19 1.66
----------------------------------------------------------------------------------------------------------------------------------
Total Income from
Investment Operations 2.33 0.05 3.47 1.63 2.00
----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.29) (0.48) (0.44) (0.44) (0.36)
From net realized gains (0.51) (0.65) (1.03) (0.97) -
In excess of net investment income - - - - -
----------------------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (0.80) (1.13) (1.47) (1.41) (0.36)
----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $14.26 $12.73 $13.81 $11.81 $11.59
==================================================================================================================================
TOTAL RETURN<F1> 19.10% 0.67% 31.00% 14.42% 20.41%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands,
end of year $220,754 $118,414 $117,562 $77,102 $55,919
Ratio to average net assets of<F2>:
Expenses, net of waivers and
reimbursements 1.00% 1.00% 1.00% 1.00% 1.00%
Expenses, before waivers and
reimbursements 1.34% 1.35% 1.37% 1.42% 1.48%
Net investment income, net of
waivers and reimbursements 2.44% 3.54% 3.53% 3.71% 3.17%
Net investment income (loss),
before waivers
and reimbursements 2.10% 3.19% 3.16% 3.29% 2.69%
Portfolio Turnover Rate 125.49% 79.95% 81.24% 72.04% 67.32%
----------------------------------------------------------------------------------------------------------------------------------
<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.
<F3> Commenced investment operations on October 7, 1996.
</TABLE>
See Notes to the Financial Statements
<PAGE>
<TABLE>
<CAPTION>
STOCK INDEX GROWTH EQUITY
FUND FUND
------------------------------------------ ---------------------------------------------------
YEAR YEAR YEAR PERIOD YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
2000 1999 1998 1997<F3> 2000 1999 1998 1997 1996
------------------------------ ------------------------------------------ ---------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE,
Beginning of Year $17.34 $15.03 $10.74 $10.00 $21.94 $18.62 $13.93 $13.15 $10.61
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net investment income 0.13 0.16 0.15 0.08 0.01 0.02 0.03 0.08 0.08
Net realized and
unrealized gains
(losses) on investments,
options, futures contracts
and foreign currency
transactions 2.85 2.49 4.80 0.74 5.61 4.51 6.36 1.49 2.59
----------------------------------------------------------------------------------------------------------------------------------
Total Income from
Investment Operations 2.98 2.65 4.95 0.82 5.62 4.53 6.39 1.57 2.67
----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.13) (0.17) (0.15) (0.07) (0.01) (0.02) (0.03) (0.08) (0.08)
From net realized gains (0.10) (0.17) (0.51) (0.01) (2.00) (1.19) (1.67) (0.71) (0.05)
In excess of net investment
income - - - - - - - - -
----------------------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (0.23) (0.34) (0.66) (0.08) (2.01) (1.21) (1.70) (0.79) (0.13)
----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $20.09 $17.34 $15.03 $10.74 $25.55 $21.94 $18.62 $13.93 $13.15
==================================================================================================================================
TOTAL RETURN<F1> 17.27% 17.78% 47.11% 8.21% 27.60% 24.72% 48.06% 11.72% 25.13%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands,
end of year $545,607 $169,062 $93,907 $35,840 $1,368,880 $640,948 $479,782 $302,605 $224,571
Ratio to average net
assets of<F2>:
Expenses, net of
waivers and
reimbursements 0.55% 0.55% 0.55% 0.55% 1.00% 1.00% 1.00% 1.00% 1.00%
Expenses, before
waivers and
reimbursements 0.93% 1.00% 1.18% 2.23% 1.30% 1.30% 1.30% 1.33% 1.36%
Net investment income,
net of waivers
and reimbursements 0.77% 1.10% 1.23% 1.92% (0.12)% 0.08% 0.18% 0.56% 0.70%
Net investment income
(loss),
before waivers
and reimbursements 0.39% 0.65% 0.60% 0.24% (0.42)% (0.22)% (0.12)% 0.23% 0.34%
Portfolio Turnover Rate 12.01% 2.46% 32.06% 64.94% 88.01% 49.67% 73.85% 67.34% 73.20%
----------------------------------------------------------------------------------------------------------------------------------
<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.
<F3> Commenced investment operations on October 7, 1996.
</TABLE>
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
EQUITY FUNDS
SELECT EQUITY
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
-------------------------------- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD $23.33 $19.16 $14.55 $13.12 $10.77
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income - - 0.02 0.02 0.02
Net realized and unrealized gains
on investments, options,
futures contracts
and foreign currency transactions 13.66 5.40 6.81 2.05 2.73
----------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) from
Investment Operations 13.66 5.40 6.83 2.07 2.75
----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income - (0.01) (0.02) (0.02) (0.03)
From net realized gains (1.12) (1.22) (2.20) (0.62) (0.37)
----------------------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (1.12) (1.23) (2.22) (0.64) (0.40)
----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $35.87 $23.33 $19.16 $14.55 $13.12
==================================================================================================================================
TOTAL RETURN<F4> 59.78% 28.79% 49.71% 15.64% 25.70%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands,
end of period $524,576 $198,530 $126,536 $63,677 $33,842
Ratio to average net assets of<F5>:
Expenses, net of waivers and
reimbursements 1.00% 1.00% 1.00% 1.00% 1.00%
Expenses, before waivers and
reimbursements 1.52% 1.54% 1.58% 1.67% 1.91%
Net investment income (loss), net of
waivers and reimbursements (0.41)% (0.15)% 0.15% 0.21% 0.22%
Net investment income (loss), before
waivers and reimbursements (0.93)% (0.69)% (0.43)% (0.46)% (0.69)%
Portfolio Turnover Rate 153.06% 87.73% 148.55% 72.68% 137.99%
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Commenced investment operations after the close of business March 31, 1998.
<F2> Commenced investment operations on September 3, 1999.
<F3> Commenced investment operations after the close of business September 30,
1999.
<F4> Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions and a complete redemption
of the investment at net asset value at the end of the year. Total return
is not annualized for periods less than one year.
<F5> Annualized for periods less than a full year.
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
<TABLE>
<CAPTION>
MIDCAP SMALL CAP SMALL SMALL CAP
GROWTH INDEX CAP GROWTH
FUND FUND FUND FUND
------------------ ------------ -------------------------------------------- -----------
YEAR PERIOD PERIOD YEAR YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
2000 1999<F1> 2000<F2> 2000 1999 1998 1997 1996 2000<F3>
------------------------ ----- -------- -------- ----- ----- ----- ----- ----- --------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $11.72 $10.00 $10.00 $12.32 $16.76 $12.31 $11.58 $9.98 $10.00
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net investment income - - 0.05 0.09 0.04 0.03 0.07 0.05 -
Net realized and unrealized gains
on investments, options,
futures contracts
and foreign currency
transactions 13.50 1.72 2.25 3.46 (3.93) 5.14 1.37 2.29 9.28
-----------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) from
Investment Operations 13.50 1.72 2.30 3.55 (3.89) 5.17 1.44 2.34 9.28
-----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income - - (0.03) (0.11) (0.01) (0.04) (0.06) (0.07) -
From net realized gains (0.89) - (0.12) (1.14) (0.54) (0.68) (0.65) (0.67) (0.07)
Total Distributions Paid (0.89) - (0.15) (1.25) (0.55) (0.72) (0.71) (0.74) (0.07)
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $24.33 $11.72 $12.15 $14.62 $12.32 $16.76 $12.31 $11.58 $19.21
===================================================================================================================================
TOTAL RETURN<F4> 108.66% 17.19% 23.22% 30.01% (23.46)% 42.71% 12.48% 24.09% 93.05%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands,
end of period $859,118 $77,378 $113,712 $200,208 $264,434 $368,579 $197,113 $155,238 $550,611
Ratio to average net
assets of<F5>:
Expenses, net of waivers and
reimbursements 1.00% 1.00% 0.65% 1.00% 1.00% 1.00% 1.00% 1.00% 1.25%
Expenses, before waivers and
reimbursements 1.31% 1.65% 1.08% 1.53% 1.52% 1.53% 1.54% 1.61% 1.52%
Net investment income
(loss), net of
waivers and reimbursements (0.61)% (0.51)% 0.76% 0.46% 0.25% 0.28% 0.54% 0.65% (0.68)%
Net investment income
(loss), before
waivers and reimbursements (0.92)% (1.16)% 0.33% (0.07)% (0.27)% (0.25)% 0.00% 0.04% (0.95)%
Portfolio Turnover Rate 156.49% 173.39% 57.01% 28.97% 18.74% 18.59% 18.92% 46.59% 127.56%
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Commenced investment operations after the close of business March 31, 1998.
<F2> Commenced investment operations on September 3, 1999.
<F3> Commenced investment operations after the close of business September 30,
1999.
<F4> Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions and a complete redemption
of the investment at net asset value at the end of the year. Total return
is not annualized for periods less than one year.
<F5> Annualized for periods less than a full year.
See Notes to the Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
EQUITY FUNDS
<TABLE>
<CAPTION>
INTERNATIONAL
GROWTH EQUITY
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 $12.57 $11.66 $10.05 $10.23 $9.61
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.26 0.13 0.09 0.09 0.17
Net realized and unrealized gains (losses)
on investments, options, futures contracts
and foreign currency transactions 3.37 1.36 1.98 0.18 0.65
--------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) from
Investment Operations 3.63 1.49 2.07 0.27 0.82
--------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income - - (0.07) (0.09) (0.11)
From net realized gains (1.68) (0.46) (0.29) (0.23) -
In excess of net investment income (0.20) (0.12) (0.10) - (0.09)
In excess of accumulated net realized gains
on investment transactions - - - (0.13) -
--------------------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (1.88) (0.58) (0.46) (0.45) (0.20)
--------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $14.32 $12.57 $11.66 $10.05 $10.23
================================================================================================================================
TOTAL RETURN<F1> 30.51% 13.04% 21.34% 2.61% 8.61%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of year $706,553 $215,656 $178,210 $165,892 $181,237
Ratio to average net assets of<F2>:
Expenses, net of waivers and
reimbursements 1.25% 1.25% 1.25% 1.25% 1.25%
Expenses, before waivers and
reimbursements 1.58% 1.62% 1.62% 1.63% 1.65%
Net investment income (loss), net of
waivers and reimbursements 0.35% 0.52% 0.79% 0.78% 0.92%
Net investment income (loss), before
waivers and reimbursements 0.02% 0.15% 0.42% 0.40% 0.52%
Portfolio Turnover Rate 155.57% 177.89% 145.02% 190.94% 216.86%
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions and a complete redemption
of the investment at net asset value at the end of the year. Total return
is not annualized for periods less than one year.
<F2> Annualized for periods less than a full year.
<F3> Commenced investment operations on April 1, 1996.
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
<TABLE>
<CAPTION>
INTERNATIONAL
SELECT EQUITY TECHNOLOGY
FUND FUND
---------------------------------------------------- ---------------------------------------
YEAR PERIOD PERIOD YEAR YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
2000 1999 1998 1997 1996 2000 1999 1998 1997<F3>
------------------------ ------- -------- -------- ----- ----- ----- ----- ----- --------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF YEAR $12.98 $12.52 $10.37 $10.73 $9.78 $29.99 $17.11 $11.95 $10.00
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net investment income 0.37 0.04 0.22 0.04 0.01 - - - -
Net realized and unrealized gains
on investments, options,
futures contracts
and foreign currency
transactions 3.57 1.08 2.19 (0.25) 0.99 41.56 13.55 6.06 2.10
-----------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) from
Investment Operations 3.94 1.12 2.41 (0.21) 1.00 41.56 13.55 6.06 2.10
-----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.27) - (0.16) (0.03) (0.02) - - - -
From net realized gains (2.09) (0.65) - - - (5.74) (0.67) (0.90) (0.15)
In excess of net investment income - (0.01) (0.10) (0.04) (0.03) - - - -
In excess of accumulated
net realized gains
on investment transactions - - - (0.08) - - - - -
-----------------------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (2.36) (0.66) (0.26) (0.15) (0.05) (5.74) (0.67) (0.90) (0.15)
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $14.56 $12.98 $12.52 $10.37 $10.73 $65.81 $29.99 $17.11 $11.95
===================================================================================================================================
TOTAL RETURN<F4> 31.25% 9.16% 23.74% (1.95)% 10.20% 154.28% 79.97% 52.62% 20.82%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands,
end of year $257,212 $124,513 $117,618 $108,944 $102,719 $2,842,750 $343,709 $104,389 $43,754
Ratio to average net
assets of<F5>:
Expenses, net of waivers and
reimbursements 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.23% 1.25% 1.25%
Expenses, before waivers and
reimbursements 1.61% 1.66% 1.64% 1.66% 1.71% 1.50% 1.53% 1.59% 2.02%
Net investment income
(loss), net of
waivers and reimbursements 0.62% 0.38% 0.29% 0.47% 0.12% (1.05)% (0.87)% (0.96)% (0.75)%
Net investment income
(loss), before
waivers and reimbursements 0.26% (0.03)% (0.10)% 0.06% (0.34)% (1.30)% (1.17)% (1.30)% (1.52)%
Portfolio Turnover Rate 145.46% 168.19% 98.22% 97.60% 176.71% 156.37% 61.01% 74.75% 67.89%
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions and a complete redemption
of the investment at net asset value at the end of the year. Total return
is not annualized for periods less than one year.
<F2> Annualized for periods less than a full year.
<F3> Commenced investment operations on April 1, 1996.
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
INCOME EQUITY FUND
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
CONVERTIBLE
PREFERRED STOCKS - 31.7%
AEROSPACE/DEFENSE - 1.1%
40,000 Titan Capital Trust<F1> $ 2,420
----------
DIVERSIFIED FINANCIAL SERVICES - 1.4%
50,100 St. Paul Capital LLC MIPS 2,993
----------
ELECTRIC - 5.3%
100,000 AES Trust III 6,750
40,000 Calpine Capital Trust II<F1> 2,185
125,000 Utilicorp United, Inc. 2,781
----------
11,716
----------
FINANCIAL - 1.0%
35,000 Pogo Trust I 2,284
----------
FOOD - 2.3%
150,000 Suiza Capital Trust II 5,138
----------
FOREST PRODUCTS & PAPER - 1.2%
60,000 International Paper Capital Trust 2,670
----------
HOLDING COMPANIES -
DIVERSIFIED - 0.8%
30,000 Seagram Co. Ltd. 1,665
----------
HOUSEWARES - 1.4%
84,000 Newell Financial Trust I 3,045
----------
INSURANCE - 0.4%
47,600 Lincoln National Corp. PRIDES 964
----------
MACHINERY-DIVERSIFIED - 0.5%
50,000 Ingersoll-Rand Co. PRIDES 1,175
----------
MEDIA - 1.9%
135,000 Readers' Digest Association, Inc. 4,185
----------
OIL & GAS PRODUCERS - 3.0%
60,000 Apache Corp., Series C 2,700
90,000 Unocal Capital Trust 3,971
----------
6,671
----------
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
OIL & GAS SERVICES - 2.6%
50,000 Weatherford International, Inc. $ 2,406
40,000 Hanover Compressor Capital Trust<F1> 3,295
----------
5,701
----------
PIPELINES - 1.7%
70,000 El Paso Energy Cap Trust I 3,675
----------
REITS - 0.9%
78,900 Prologis Trust, Series B 1,894
----------
SAVINGS & LOANS - 1.7%
75,000 Sovereign Bancorp 3,656
----------
TELECOMMUNICATIONS - 1.0%
40,000 RSL Communications Ltd.<F1> 2,320
----------
TELECOM SERVICES - 3.5%
125,000 Amdocs Ltd. 7,750
----------
Total Convertible Preferred Stocks
(cost $57,508) 69,922
----------
PRINCIPAL
AMOUNT
(000S)
-----------
CONVERTIBLE BONDS - 40.4%
ADVERTISING - 1.8%
$2,000 Omnicom Group, Inc.,
2.25%, 1/6/13 4,013
----------
AUTO PARTS & EQUIPMENT - 1.4%
2,000 Magna International, Inc.,
4.875%, 2/15/05 1,715
2,000 Standard Motor Products,
6.75%, 7/15/09 1,428
----------
3,143
----------
CELLULAR TELECOMMUNICATIONS - 1.6%
3,000 Nextel Communications,
5.25%, 1/15/10<F1> 3,574
----------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
COMMERCIAL SERVICES - 1.9%
$ 1,000 CUC International, Inc.,
3.00%, 2/15/02 $ 929
4,000 Interim Services, Inc.,
4.50%, 6/1/05 3,200
----------
4,129
----------
COMPUTERS - 1.8%
1,500 EMC Corp.,
6.00%, 5/15/04 2,362
1,500 Juniper Networks, Inc.,
4.75%, 3/15/07 1,571
----------
3,933
----------
ELECTRONICS - 3.2%
1,000 Intel, Corp.,
4.00%, 9/1/04 4,311
4,000 Solectron Corp.,
0.00%, 1/27/19 2,660
----------
6,971
----------
HEALTH CARE - 1.4%
3,000 ALZA Corp.,
5.00%, 5/1/06 3,191
----------
INSURANCE - 2.4%
6,000 Loews Corp.,
3.125%, 9/15/07 5,363
----------
MEDIA - 6.6%
Clear Channel Communications, Inc.,
4,000 2.625%, 4/1/03 4,860
2,000 1.50%, 12/1/02 1,913
5,000 Liberty Media Group
4.00%, 11/15/29<F1> 7,794
----------
14,567
----------
OIL & GAS PRODUCERS - 6.3%
6,000 Devon Energy Corp.,
4.95%, 8/15/08 5,745
5,000 Diamond Offshore Drilling, Inc.,
3.75%, 2/15/07 5,825
2,000 Kerr-McGee Corp.,
5.25%. 2/15/10 2,313
----------
13,883
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
PHARMACEUTICALS - 3.9%
$ 5,000 Athena Neurosciences, Inc.,
4.75%, 11/15/04 $ 6,888
2,000 Roche Holdings, Inc.,
0.00%, 1/19/15<F1> 1,682
----------
8,570
----------
REITS - 0.4%
1,000 Pinnacle Holdings, Inc.,
5.50%, 9/15/07<F1> 917
----------
RETAIL - 2.7%
5,000 Costco Wholesale Corp.,
0.00%, 8/19/17 5,956
----------
SEMICONDUCTORS - 1.7%
2,000 Burr-Brown Corp.,
4.25%, 2/15/07<F1> 2,290
500 Cypress Semiconductor
4.00%, 2/1/05 646
1,000 Triquint Semiconductor
4.00%, 3/1/07<F1> 781
----------
3,717
----------
SOFTWARE - 1.4%
500 Critical Path, Inc.,
5.75%, 4/1/05 485
2,000 Network Associates, Inc.,
0.00%, 2/13/18<F1> 760
1,500 Rational Software, Corp.,
5.00%, 2/1/07<F1> 1,867
----------
3,112
----------
TELECOMMUNICATIONS EQUIPMENT - 1.4%
1,000 American Tower, Corp.,
5.00%, 2/15/10<F1> 1,136
2,000 Efficient Networks, Inc.,
5.00%, 3/15/05<F1> 2,033
----------
3,169
----------
TELECOMMUNICATIONS SERVICES - 0.5%
1,000 Level 3 Communications,
6.00%, 3/15/10 981
----------
Total Convertible Bonds
(cost $80,512) 89,189
----------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
INCOME EQUITY FUND (continued)
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
COMMON STOCKS - 22.1%
COMMERCIAL SERVICES - 0.5%
20,000 Paychex, Inc. $ 1,048
----------
COMPUTERS - 0.7%
12,000 Hewlett-Packard Co. 1,591
----------
ELECTRONICS - 0.5%
25,000 Solectron Corp.* 1,002
----------
DIVERSIFIED FINANCIAL SERVICES - 2.0%
75,000 Citigroup, Inc. 4,448
----------
OIL & GAS PRODUCERS - 1.0%
43,000 Transocean Sedco Forex, Inc. 2,206
----------
OIL & GAS SERVICES - 1.4%
36,000 Baker Hughes, Inc. 1,089
25,000 Schlumberger Ltd. 1,913
----------
3,002
----------
PIPELINES - 7.3%
214,000 Enron Corp. 16,023
----------
RETAIL - 0.6%
20,000 Home Depot, Inc. 1,290
----------
SOFTWARE - 1.8%
43,000 Automatic Data Processing, Inc. 2,075
30,000 Network Associates, Inc. 968
14,300 Peregrine Systems, Inc. 959
----------
4,002
----------
TELECOMMUNICATIONS EQUIPMENT - 2.1%
7,200 JDS Uniphase Corp. 868
22,000 Motorola, Inc. 3,132
5,700 Sycamore Networks, Inc. 735
----------
4,735
----------
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
TELECOMMUNICATIONS SERVICES - 0.4%
20,000 Qwest Communications International $ 970
----------
TELEPHONE - 3.8%
150,000 AT&T Corp. 8,437
----------
Total Common Stocks
(cost $ 34,627) 48,754
----------
PRINCIPAL
AMOUNT
(000S)
----------
SHORT-TERM INVESTMENT - 4.6%
(cost $10,160)
$10,160 UBS A.G., Grand Cayman
Eurodollar Time Deposits,
6.375%, 4/3/00 10,160
----------
Total Investments - 98.8%
(cost $182,807) 218,025
Other Assets less Liabilities - 1.2% 2,729
----------
NET ASSETS - 100.0% $220,754
========
<F1> Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At March 31,
2000, the value of these securities amounted to approximately $33,054,000
or 15.0% of net assets.
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
SCHEDULES OF INVESTMENTS MARCH 31, 2000
STOCK INDEX FUND
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
COMMON STOCKS - 98.6%
ADVERTISING - 0.3%
11,800 Interpublic Group of Cos., Inc. $ 558
7,500 Omnicom Group, Inc. 701
2,900 Young & Rubicam, Inc. 136
----------
1,395
----------
AEROSPACE - 0.7%
36,668 Boeing (The) Co. 1,391
8,500 General Dynamics Corp. 423
4,600 Goodrich (B.F.) Co. 132
16,746 Lockheed Martin Corp. 342
2,900 Northrop Grumman Corp. 153
14,300 Raytheon Co. 254
20,000 United Technologies Corp. 1,264
----------
3,959
----------
AIRLINES - 0.2%
6,240 AMR Corp. 199
5,400 Delta Air Lines, Inc. 288
21,287 Southwest Airlines Co. 443
3,000 U.S. Airways Group, Inc. 83
----------
1,013
----------
APPAREL - 0.1%
2,500 Liz Claiborne, Inc. 115
11,700 NIKE, Inc., Class B 463
2,400 Reebok International Ltd. 22
1,400 Russell Corp. 20
5,028 VF Corp. 121
----------
741
----------
AUTO MANUFACTURERS - 0.9%
51,000 Ford Motor Co. 2,343
27,000 General Motors Corp. 2,236
2,680 Navistar International Corp. 107
3,260 PACCAR, Inc. 163
----------
4,849
----------
AUTO PARTS & EQUIPMENT - 0.2%
3,200 Cooper Tire & Rubber Co. 40
6,972 Dana Corp. 197
23,810 Delphi Automotive Systems Corp. 381
6,558 Goodyear (The) Tire & Rubber Co. 153
5,100 TRW, Inc. 298
----------
1,069
----------
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
BANKS - 4.7%
16,550 AmSouth Bancorp. $ 247
72,057 Bank of America Corp. 3,779
31,100 Bank of New York Co., Inc. 1,293
48,446 Bank One Corp. 1,665
14,700 BB&T Corp. 413
34,852 Chase Manhattan Corp. 3,038
6,650 Comerica, Inc. 278
13,075 Fifth Third Bancorp 824
41,674 First Union Corp. 1,551
41,409 Firstar Corp. 950
38,609 FleetBoston Financial Corp. 1,408
9,657 Huntington Bancshares, Inc. 216
18,900 KeyCorp 359
21,500 Mellon Bank Corp. 634
7,300 Morgan (J.P.) & Co., Inc. 962
26,000 National City Corp. 536
5,200 Old Kent Financial Corp. 168
12,400 PNC Bank Corp. 559
9,200 Regions Financial Corp. 210
7,100 SouthTrust Corp. 181
6,800 State Street Corp. 659
7,400 Summit Bancorp 194
13,500 SunTrust Banks, Inc. 779
11,850 Synovus Financial Corp. 224
31,842 U.S. Bancorp 696
6,000 Union Planters Corp. 185
8,600 Wachovia Corp. 581
69,660 Wells Fargo & Co. 2,852
----------
25,441
----------
BEVERAGES - 1.6%
19,644 Anheuser-Busch Cos., Inc. 1,223
2,900 Brown-Forman Corp., Class B 158
104,300 Coca-Cola (The) Co. 4,897
18,100 Coca-Cola Enterprises Inc. 388
1,600 Coors (Adolph) Co., Class B 76
61,400 PepsiCo, Inc. 2,122
----------
8,864
----------
BIOTECHNOLOGY - 0.8%
43,100 Amgen, Inc.* 2,645
6,300 Biogen, Inc.* 440
26,800 Pharmacia Corp. 1,380
----------
4,465
----------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
STOCK INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
COMMON STOCKS - 98.6% (CONT'D.)
BUILDING MATERIALS - 0.1%
1,700 Armstrong World Industries, Inc. $ 30
18,900 Masco Corp. 387
2,300 Owens Corning 44
4,200 Vulcan Materials Co. 192
----------
653
----------
CHEMICALS - 1.0%
9,700 Air Products & Chemicals, Inc. 276
3,000 Ashland Inc. 100
9,250 Dow Chemical Co. 1,055
44,077 du Pont (E.I.) de Nemours & Co. 2,331
3,275 Eastman Chemical Co. 149
5,262 Engelhard Corp. 80
2,400 Great Lakes Chemical Corp. 82
4,500 Hercules, Inc. 73
6,700 Praxair, Inc. 279
9,243 Rohm & Haas Co. 412
7,000 Sherwin-Williams Co. 154
4,300 Sigma-Aldrich Corp. 115
5,700 Union Carbide Corp. 332
3,000 W.R. Grace & Co. 38
----------
5,476
----------
COAL - 0.0%
738 Arch Coal, Inc. 5
----------
COMMERCIAL SERVICES - 0.4%
4,200 Block (H&R), Inc. 188
29,808 Cendant Corp.* 551
3,100 Deluxe Corp. 82
5,300 Donnelley (R.R.) & Sons Co. 111
6,802 Dun & Bradstreet (The) Corp. 195
5,500 Ecolab, Inc. 202
6,000 Equifax, Inc. 152
11,941 McKesson HBOC, Inc. 250
10,400 Paychex, Inc. 545
4,900 Quintiles Transnational Corp.* 83
----------
2,359
----------
COMPUTERS - 11.8%
14,500 3Com Corp.* 807
4,400 Adaptec, Inc.* 170
6,800 Apple Computer, Inc. 924
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
7,700 Cabletron Systems, Inc.* $ 226
6,100 Ceridian Corp. 117
288,800 Cisco Systems, Inc.* 22,328
71,489 Compaq Computer Corp.* 1,903
7,100 Computer Sciences Corp. 562
108,300 Dell Computer Corp.* 5,841
19,900 Electronic Data Systems Corp. 1,277
42,956 EMC Corp.* 5,370
13,400 Gateway 2000, Inc.* 710
42,400 Hewlett-Packard Co. 5,621
76,100 International Business Machines Corp. 8,980
5,400 Lexmark International Group, Inc.* 571
13,100 Linear Technology Corp. 721
4,100 NCR Corp.* 165
12,900 Network Appliance, Inc.* 1,067
9,100 Seagate Technology, Inc.* 548
7,800 Silicon Graphics, Inc.* 82
66,600 Sun Microsystems, Inc.* 6,241
13,100 Unisys Corp. 334
----------
64,565
----------
COSMETICS/PERSONAL CARE - 1.5%
2,400 Alberto-Culver Co., Class B 57
10,272 Avon Products, Inc. 299
24,600 Colgate-Palmolive Co. 1,387
45,288 Gillette Co. 1,707
4,400 International Flavors & Fragrances, Inc. 154
23,536 Kimberly-Clark Corp. 1,312
55,556 Procter & Gamble Co. 3,125
----------
8,041
----------
DISTRIBUTION/WHOLESALE - 0.2%
18,816 Costco Wholesale Corp. 989
7,550 Genuine Parts Co. 180
3,900 Grainger (W.W.), Inc. 212
----------
1,381
----------
DIVERSIFIED FINANCIAL SERVICES - 5.1%
18,900 American Express Co. 2,815
30,786 Associates First Capital Corp. 660
4,776 Bear (The) Stearns Cos. Inc. 218
8,300 Capital One Financial Corp. 398
142,340 Citigroup Inc. 8,444
4,800 Countrywide Credit Industries, Inc. 131
43,300 Fannie Mae 2,444
10,500 Franklin Resources, Inc. 351
29,300 Freddie Mac 1,295
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
19,845 Household International, Inc. $ 740
5,100 Lehman Brothers Holdings, Inc. 495
33,805 MBNA Corp. 862
15,600 Merrill Lynch & Co., Inc. 1,638
48,118 Morgan Stanley Dean Witter & Co. 3,925
6,000 Paine Webber Group, Inc. 260
5,100 Price (T. Rowe) Associates, Inc. 201
6,000 Providian Financial Corp. 520
34,650 Schwab (Charles) Corp. 1,969
6,700 SLM Holding Corp. 223
----------
27,589
----------
ELECTRIC - 1.5%
8,700 AES Corp. 685
5,800 Ameren Corp. 179
8,200 American Electric Power Co. 244
6,700 Carolina Power & Light Co. 217
9,000 Central & South West Corp. 154
6,741 Cinergy Corp. 145
4,900 CMS Energy Corp. 89
9,300 Consolidated Edison, Inc. 270
6,300 Constellation Energy Group, Inc. 201
10,093 Dominion Resources, Inc. 388
6,100 DTE Energy Co. 177
15,452 Duke Energy Co. 811
14,700 Edison International 243
10,400 Entergy Corp. 210
9,800 FirstEnergy Corp. 202
7,600 FPL Group, Inc. 350
4,100 Florida Progress Corp. 188
5,200 GPU, Inc. 142
4,900 New Century Energies, Inc. 147
7,900 Niagara Mohawk Power Corp. 107
6,500 Northern States Power Co. 129
7,800 PECO Energy Co. 288
16,200 PG&E Corp. 340
3,600 Pinnacle West Capital Corp. 101
6,100 PP&L Resources, Inc. 128
9,250 Public Service Enterprise Group, Inc. 274
12,522 Reliant Energy, Inc. 293
28,400 Southern Co. 618
11,684 Texas Utilities Co. 347
9,200 Unicom Corp. 336
----------
8,003
----------
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
ELECTRICAL COMPONENTS &
EQUIPMENT - 0.2%
18,200 Emerson Electric Co. $ 962
8,275 Molex, Inc. 486
----------
1,448
----------
ELECTRONICS - 0.5%
3,600 Johnson Controls, Inc. 195
1,900 Millipore Corp. 107
4,725 Parker-Hannifin Corp. 195
8,700 PE Corp - PE Biosystems Group 840
2,000 PerkinElmer, Inc. 133
25,000 Solectron Corp.* 1,002
1,950 Tektronix, Inc. 109
6,700 Thermo Electron Corp.* 137
2,400 Thomas & Betts Corp. 68
----------
2,786
----------
ENGINEERING & CONSTRUCTION - 0.0%
3,200 Fluor Corp. 99
----------
ENTERTAINMENT - 0.0%
5,450 Harrah's Entertainment, Inc.* 101
8,200 Mirage Resorts, Inc.* 159
----------
260
----------
ENVIRONMENTAL CONTROL - 0.1%
8,000 Allied Waste Industries, Inc.* 53
26,173 Waste Management, Inc. 358
----------
411
----------
FOOD - 1.7%
17,845 Albertson's, Inc. 553
25,638 Archer-Daniels-Midland Co. 266
11,800 Bestfoods 552
18,000 Campbell Soup Co. 554
20,800 ConAgra, Inc. 377
12,700 General Mills, Inc. 460
1,600 Great Atlantic & Pacific Tea Co., Inc. 31
15,000 Heinz (H.J.) Co. 523
5,800 Hershey Foods Corp. 283
17,100 Kellogg Co. 438
35,200 Kroger Co. 618
13,800 Nabisco Group Holdings Corp. 166
5,600 Quaker Oats (The) Co. 340
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
STOCK INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
COMMON STOCKS - 98.6% (CONT'D.)
FOOD - 1.7% (CONT'D.)
12,700 Ralston-Ralston Purina Group $ 348
21,500 Safeway, Inc.* 974
38,400 Sara Lee Corp. 691
5,900 SUPERVALU Inc. 112
13,900 Sysco Corp. 496
24,171 Unilever N.V. - ADR 1,163
6,200 Winn-Dixie Stores, Inc. 121
4,900 Wrigley (Wm.) Jr. Co. 376
----------
9,442
----------
FOREST PRODUCTS & PAPER - 0.5%
2,433 Boise Cascade Co. 85
4,100 Champion International Corp. 218
9,100 Fort James Corp. 200
7,200 Georgia-Pacific Corp. 285
17,443 International Paper Co. 746
4,516 Louisiana-Pacific Corp. 63
4,300 Mead Corp. 150
1,200 Potlatch Corp. 52
2,350 Temple-Inland, Inc. 117
4,200 Westvaco Corp. 140
9,900 Weyerhaeuser Co. 564
4,700 Willamette Industries, Inc. 189
----------
2,809
----------
GAS - 0.1%
1,100 Eastern Enterprises 66
2,000 NICOR, Inc. 66
1,300 ONEOK, Inc. 33
1,500 Peoples Energy Corp. 41
8,671 Sempra Energy, Inc. 145
----------
351
----------
HAND/MACHINE TOOLS - 0.1%
3,700 Black & Decker Corp. 139
1,600 Milacron Inc. 23
2,450 Snap-On, Inc. 64
3,800 Stanley Works (The) 100
----------
326
----------
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
HEALTH CARE - 2.1%
5,600 Allergan, Inc. $ 280
2,200 Bard (C.R.), Inc. 85
2,400 Bausch & Lomb, Inc. 125
12,300 Baxter International, Inc. 772
10,600 Becton, Dickinson & Co. 279
4,800 Biomet, Inc. 175
17,500 Boston Scientific Corp.* 373
23,747 Columbia/HCA Healthcare Corp. 601
13,000 Guidant Corp. 765
16,300 HEALTHSOUTH Corp.* 90
7,100 Humana, Inc. 52
58,700 Johnson & Johnson 4,114
2,900 Mallinckrodt, Inc. 83
4,350 Manor Care, Inc.* 59
50,400 Medtronic, Inc. 2,593
3,550 St. Jude Medical, Inc. 92
13,200 Tenet Healthcare Corp.* 304
7,200 United Healthcare Corp. 429
2,700 Wellpoint Health Networks, Inc., Class A* 189
----------
11,460
----------
HOLDING COMPANIES - DIVERSIFIED - 0.2%
18,300 Seagram (The) Co. Ltd. 1,089
----------
HOME BUILDERS - 0.0%
2,500 Centex Corp. 60
1,986 Kaufman & Broad Home Corp. 43
1,800 Pulte Corp. 38
----------
141
----------
HOME FURNISHINGS - 0.1%
8,300 Leggett & Platt, Inc. 178
3,600 Maytag Corp. 119
3,100 Whirlpool Corp. 182
----------
479
----------
HOUSEHOLD PRODUCTS/WARES - 0.2%
2,700 American Greetings Corp., Class A 49
4,800 Avery Dennison Corp. 293
10,000 Clorox (The) Co. 325
6,900 Fortune Brands, Inc. 173
1,400 Jostens, Inc. 34
2,400 Tupperware Corp. 38
----------
912
----------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
HOUSEWARES - 0.0%
11,908 Newell Rubbermaid, Inc. $ 295
----------
INSURANCE - 2.8%
6,023 Aetna, Inc. 335
11,200 AFLAC, Inc. 510
34,014 Allstate Corp. 810
10,410 American General Corp. 584
65,346 American International Group, Inc. 7,156
10,875 Aon Corp. 351
7,400 Chubb (The) Corp. 500
7,100 CIGNA Corp. 538
6,900 Cincinnati Financial Corp. 260
13,848 Conseco, Inc. 158
9,400 Hartford Financial Services
Group (The), Inc. 496
4,375 Jefferson-Pilot Corp. 291
8,300 Lincoln National Corp. 278
4,500 Loews Corp. 225
11,250 Marsh & McLennan Cos., Inc. 1,242
4,200 MBIA, Inc. 219
4,500 MGIC Investment Corp. 196
3,100 Progressive Corp. 236
5,500 SAFECO Corp. 146
9,580 St. Paul Cos., Inc. 327
5,600 Torchmark Corp. 130
10,161 UnumProvident Corp. 172
----------
15,160
----------
IRON/STEEL - 0.1%
3,932 Allegheny Teledyne, Inc. 79
5,500 Bethlehem Steel Corp.* 33
3,700 Nucor Corp. 185
3,700 USX - U.S. Steel Group 93
----------
390
----------
LEISURE TIME - 0.3%
3,900 Brunswick Corp. 74
25,996 Carnival Corp. 645
6,400 Harley-Davidson, Inc. 508
5,481 Sabre Holdings Corp.* 202
----------
1,429
----------
LODGING - 0.1%
15,600 Hilton Hotels Corp. 121
10,500 Marriott International, Inc. 331
----------
452
----------
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
MACHINERY -
CONSTRUCTION & MINING - 0.1%
15,000 Caterpillar, Inc. $ 592
----------
MACHINERY - DIVERSIFIED - 0.3%
1,000 Briggs & Stratton Corp. 41
1,700 Cummins Engine Co., Inc. 64
9,900 Deere & Co. 376
8,600 Dover Corp. 412
6,950 Ingersoll-Rand Co. 308
2,500 McDermott International, Inc. 23
300 NACCO Industries, Inc. 14
8,000 Rockwell International Corp. 335
----------
1,573
----------
MEDIA - 3.7%
32,230 CBS Corp. 1,825
14,300 Clear Channel Communications, Inc.* 989
39,100 Comcast Corp., Class A 1,697
87,400 Disney (The Walt) Co. 3,617
3,800 Dow Jones & Co., Inc. 273
11,800 Gannett Co., Inc. 830
3,011 Harcourt General, Inc. 112
3,500 Knight-Ridder, Inc. 178
8,300 McGraw Hill Cos., Inc. 378
25,800 MediaOne Group Inc.* 2,090
2,200 Meredith Corp. 61
7,200 New York Times Co., Class A 309
54,300 Time Warner, Inc. 5,430
2,500 Times Mirror Co., Class A 232
10,000 Tribune Co. 366
29,404 Viacom, Inc., Class B* 1,551
----------
19,938
----------
METAL FABRICATE/HARDWARE - 0.0%
2,600 Timken (The) Co. 42
3,725 Worthington Industries, Inc. 46
----------
88
----------
METALS - DIVERSIFIED - 0.4%
9,225 Alcan Aluminum Ltd. 312
15,500 Aluminum Co. of America 1,089
6,900 Freeport-McMoRan Copper &
Gold, Inc., Class B 83
8,100 Inco Ltd. 148
3,430 Phelps Dodge Corp. 163
2,700 Reynolds Metals Co. 181
----------
1,976
----------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
STOCK INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
COMMON STOCKS - 98.6% (CONT'D.)
MINING - 0.1%
16,600 Barrick Gold Corp. $ 260
11,000 Homestake Mining Co. 66
7,077 Newmont Mining Corp. 159
13,735 Placer Dome, Inc. 112
----------
597
----------
MISCELLANEOUS MANUFACTURING - 5.8%
4,000 Cooper Industries, Inc. 140
2,818 Crane Co. 66
6,000 Danaher Corp. 306
13,300 Eastman Kodak Co. 722
3,100 Eaton Corp. 242
1,300 FMC Corp. 73
138,500 General Electric Co. 21,493
33,412 Honeywell International, Inc. 1,759
12,700 Illinois Tool Works, Inc. 702
3,700 ITT Industries, Inc. 115
16,800 Minnesota Mining & Manufacturing Co. 1,489
1,700 National Service Industries, Inc. 36
5,266 Pall Corp. 118
1,928 Polaroid Corp. 46
7,300 PPG Industries, Inc. 382
6,300 Textron, Inc. 384
71,422 Tyco International Ltd. 3,561
----------
31,634
----------
OFFICE/BUSINESS EQUIPMENT - 0.2%
11,200 Pitney Bowes, Inc. 500
27,996 Xerox Corp. 728
----------
1,228
----------
OIL & GAS PRODUCERS - 4.8%
3,800 Amerada Hess Corp. 246
5,400 Anadarko Petroleum Corp. 209
4,800 Apache Corp. 239
13,600 Atlantic Richfield Co. 1,156
9,182 Burlington Resources, Inc. 340
27,700 Chevron Corp. 2,562
9,000 Coastal Corp. 414
26,391 Conoco Inc. 676
145,757 Exxon Mobil Corp. 11,342
4,049 Kerr-McGee Corp. 234
15,500 Occidental Petroleum Corp. 322
10,700 Phillips Petroleum Co. 495
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
3,900 Rowan Cos., Inc. $ 115
90,500 Royal Dutch Petroleum Co. ADR 5,208
3,800 Sunoco, Inc. 104
23,300 Texaco, Inc. 1,249
6,100 Tosco Corp. 186
8,810 Transocean Sedco Forex, Inc. 452
10,644 Union Pacific Resources Group, Inc. 154
10,200 Unocal Corp. 303
13,100 USX - Marathon Group 341
----------
26,347
----------
OIL & GAS SERVICES - 0.5%
13,940 Baker Hughes, Inc. 422
18,600 Halliburton Co. 762
23,200 Schlumberger Ltd. 1,775
----------
2,959
----------
PACKAGING & CONTAINERS - 0.1%
1,300 Ball Corp. 45
2,200 Bemis Co. 81
5,500 Crown Cork & Seal Co., Inc. 88
6,300 Owens-Illinois, Inc.* 106
7,200 Pactiv Corp.* 63
3,553 Sealed Air Corp.* 193
----------
576
----------
PHARMACEUTICALS - 6.1%
64,900 Abbott Laboratories 2,285
4,300 ALZA Corp.* 162
55,100 American Home Products Corp. 2,956
83,760 Bristol-Myers Squibb Co. 4,838
11,900 Cardinal Health, Inc. 546
45,996 Lilly (Eli) & Co. 2,898
98,700 Merck & Co., Inc. 6,132
163,400 Pfizer, Inc. 5,974
21,935 Pharmacia & Upjohn, Inc. 1,300
62,000 Schering-Plough Corp. 2,279
36,200 Warner-Lambert Co. 3,526
4,100 Watson Pharmaceuticals Inc.* 162
----------
33,058
----------
PIPELINES - 0.7%
3,450 Columbia Gas System, Inc. 204
9,600 El Paso Energy Corp. 388
30,200 Enron Corp. 2,261
18,400 Williams (The) Cos., Inc. 808
----------
3,661
----------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
RETAIL - 5.8%
5,800 Autozone, Inc.* $ 161
5,900 Bed Bath & Beyond, Inc.* 232
8,600 Best Buy Co., Inc.* 740
8,600 Circuit City Stores, Inc. 524
4,700 Consolidated Stores Corp.* 53
16,500 CVS Corp. 620
5,400 Darden Restaurants, Inc. 96
4,400 Dillard's, Inc., Class A 72
11,124 Dollar General Corp. 299
8,900 Federated Department Stores, Inc. 372
35,887 Gap (The), Inc. 1,788
97,155 Home Depot (The), Inc. 6,266
6,290 Ikon Office Solutions, Inc. 39
20,600 Kmart Corp. 199
6,900 Kohl's Corp.* 707
9,100 Limited (The), Inc. 383
1,700 Longs Drug Stores, Inc. 39
16,100 Lowe's Cos., Inc. 940
14,048 May Department Stores Co. 400
57,200 McDonald's Corp. 2,149
5,700 Nordstrom, Inc. 168
13,900 Office Depot, Inc.* 161
11,000 Penney (J.C.) & Co., Inc. 163
10,900 Rite Aid Corp. 60
16,000 Sears, Roebuck & Co. 494
19,850 Staples Inc.* 397
8,200 Tandy Corp. 416
18,500 Target Corp. 1,383
13,100 TJX Cos., Inc. 291
10,175 Toys R US, Inc. 151
6,400 Tricon Global Restaurants, Inc.* 199
42,500 Walgreen Co. 1,094
188,000 Wal-Mart Stores, Inc. 10,435
5,000 Wendy's International, Inc. 101
----------
31,592
----------
SAVINGS & LOANS - 0.2%
6,800 Golden West Financial Corp. 212
24,380 Washington Mutual, Inc. 646
----------
858
----------
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
SEMICONDUCTORS - 6.3%
6,250 Advanced Micro Devices, Inc.* $ 357
14,800 Analog Devices, Inc.* 1,192
32,300 Applied Materials, Inc.* 3,044
9,100 Conexant Systems, Inc.* 646
141,000 Intel Corp. 18,603
7,700 KLA-Tencor Corp.* 647
12,600 LSI Logic Corp.* 915
11,400 Micron Technology, Inc. 1,436
7,200 National Semiconductor Corp.* 436
7,200 Teradyne, Inc.* 592
34,300 Texas Instruments, Inc. 5,488
13,600 Xlinx, Inc.* 1,126
----------
34,482
----------
SOFTWARE - 9.5%
5,000 Adobe Systems, Inc. 557
96,300 America Online, Inc.* 6,476
2,600 Autodesk, Inc. 118
26,600 Automatic Data Processing, Inc. 1,283
10,300 BMC Software Inc.* 509
7,600 Citrix Systems, Inc.* 504
23,030 Computer Associates International, Inc. 1,363
15,200 Compuware Corp.* 320
17,700 First Data Corp. 783
13,004 IMS Health, Inc. 220
219,700 Microsoft Corp.* 23,343
13,800 Novell, Inc.* 395
119,050 Oracle Corp.* 9,293
11,600 Parametric Technology Corp.* 244
11,300 Peoplesoft, Inc.* 226
1,100 Shared Medical Systems Corp. 57
3,100 Sterling Software, Inc. 95
16,400 Veritas Software Co. 2,148
22,200 Yahoo! Inc.* 3,804
----------
51,738
----------
TELECOMMUNICATION
EQUIPMENT - 5.5%
12,700 ADC Telecommunications, Inc.* 684
3,362 Andrew Corp.* 77
3,200 Comverse Technology, Inc.* 605
11,600 Corning, Inc. 2,250
134,500 Lucent Technologies, Inc. 8,171
29,955 Motorola, Inc. 4,265
60,900 Nortel Networks Corp. 7,673
31,100 QUALCOMM, Inc.* 4,644
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
STOCK INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
COMMON STOCKS - 98.6% (CONT'D.)
TELECOMMUNICATION
EQUIPMENT - 5.5% (CONT'D.)
6,700 Scientific-Atlanta, Inc. $ 425
17,000 Tellabs, Inc.* 1,071
----------
29,865
----------
TELECOMMUNICATIONS - 1.1%
32,865 Global Crossing Ltd.* 1,345
15,400 Nextel Communications, Inc. - Class A* 2,283
36,400 Sprint Corp.* 2,377
----------
6,005
----------
TELEPHONE - 6.3%
13,300 Alltel Corp. 839
134,835 AT&T Corp. 7,584
65,536 Bell Atlantic Corp. 4,006
79,500 BellSouth Corp. 3,737
5,850 Centurytel, Inc. 217
41,000 GTE Corp. 2,911
119,817 MCI WorldCom, Inc.* 5,429
143,992 SBC Communications, Inc. 6,048
36,800 Sprint Corp. 2,318
21,365 U.S. West, Inc. 1,552
----------
34,641
----------
TEXTILES - 0.0%
800 Springs Industries, Inc., Class A 30
----------
TOBACCO - 0.4%
99,900 Philip Morris Cos., Inc. 2,110
7,200 UST, Inc. 113
----------
2,223
----------
TOYS, GAMES & HOBBIES - 0.1%
7,412 Hasbro, Inc. 122
17,741 Mattel, Inc. 185
----------
307
----------
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
TRANSPORTATION - 0.4%
19,328 Burlington Northern Santa Fe Corp. $ 428
9,224 CSX Corp. 217
12,240 FedEx Corp.* 477
4,700 Kansas City Southern Industries, Inc. 404
16,100 Norfolk Southern Corp. 231
10,500 Union Pacific Corp. 411
----------
2,168
----------
TRUCKING & LEASING - 0.0%
2,700 Ryder System, Inc. 61
----------
Total Common Stocks
(cost $314,703) 537,804
----------
PRINCIPAL
AMOUNT
(000S)
----------
SHORT-TERM INVESTMENTS - 1.3%
$6,302 UBS AG, Grand Cayman
Eurodollar Time Deposits,
6.375%, 4/3/00 6,302
1,040 U.S. Treasury Bill,<F1>
5.69%, 6/22/00 1,026
----------
Total Short-Term Investments
(cost $7,329) 7,328
----------
Total Investments - 99.9%
(cost $322,032) 545,132
Other Assets less Liabilities - 0.1% 475
----------
NET ASSETS - 100.0% $545,607
========
OPEN FUTURES CONTRACTS:
Notional Unrealized
Number of Amount Contract Contract Gain
Type Contracts (000s) Position Exp. (000s)
--------------------------------------------------------------------------------
S&P 500 20 $7,577 Long 6/00 $148
-----
<F1> Security pledged as collateral to cover margin requirements for open
futures contracts.
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
SCHEDULES OF INVESTMENTS MARCH 31, 2000
GROWTH EQUITY FUND
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
COMMON STOCKS - 95.1%
ADVERTISING - 0.7%
200,000 Lamar Advertising Co.* $ 9,100
----------
AEROSPACE - 0.7%
240,000 Boeing Co. 9,105
----------
AUTO MANUFACTURERS - 0.9%
137,000 Ford Motor Co. 6,294
67,600 General Motors Corp. 5,598
----------
11,892
----------
BANKS - 5.0%
213,000 Bank of America Corp. 11,168
151,200 Chase Manhattan Corp. 13,183
220,000 Fleet Boston Financial Corp. 8,030
44,000 Fuji Bank Corp. ADR 4,140
205,000 Southtrust Corp. 5,215
138,700 State Street Corp. 13,437
319,500 Wells Fargo & Co. 13,080
----------
68,253
----------
BEVERAGES - 0.7%
73,000 Anheuser-Busch Cos., Inc. 4,544
152,800 Pepsico, Inc. 5,281
----------
9,825
----------
BIOTECHNOLOGY - 1.8%
58,800 Genentech, Inc.* 8,938
296,400 Pharmacia Corp. 15,265
----------
24,203
----------
BUILDING MATERIALS - 0.5%
152,000 Martin Marietta Materials 7,220
----------
CHEMICALS - 1.1%
195,600 du Pont (E.I.) de Nemours & Co. 10,342
129,000 Praxair Inc. 5,370
----------
15,712
----------
COMMERCIAL SERVICES - 1.0%
258,825 Paychex, Inc. 13,556
----------
COMPUTERS & NETWORKING - 6.5%
544,500 Cisco Systems, Inc.* 42,096
76,700 Computer Sciences Corp.* 6,069
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
104,500 EMC Corp.* $ 13,063
108,600 International Business Machines Corp. 12,815
157,400 Sun Microsystems, Inc.* 14,749
----------
88,792
----------
COSMETIC/PERSONAL CARE - 0.2%
61,500 Procter & Gamble Co. 3,459
----------
DISTRIBUTION/WHOLESALE - 0.5%
120,000 Costco Wholesale Corp.* 6,308
----------
DIVERSIFIED FINANCIAL SERVICES - 8.8%
92,400 American Express Company 13,762
237,100 Capital One Financial Corp. 11,366
431,500 Citigroup, Inc. 25,592
151,600 Fannie Mae 8,556
101,600 Goldman Sachs Group, Inc 10,681
415,500 MBNA Corp. 10,595
108,000 Merrill Lynch & Co. 11,340
248,000 Morgan Stanley Dean Witter & Co. 20,228
97,300 Providian Financial Corp. 8,429
----------
120,549
----------
ELECTRIC - 0.7%
184,000 Duke Energy Corp. 9,660
----------
ELECTRONICS - 2.4%
177,000 Linear Technology 9,735
376,000 Solectron Corp.* 15,063
44,000 Viasystems Group 682
76,400 Vitesse Semiconductor Corp* 7,354
----------
32,834
----------
FOOD - 0.6%
294,635 Keebler Foods Co. 8,452
----------
FOREST PRODUCTS & PAPER - 1.0%
160,000 Georgia-Pacific 6,330
162,000 International Paper Co. 6,926
----------
13,256
----------
HEALTH CARE - 2.8%
213,800 Guidant Corp. 12,574
130,800 Johnson & Johnson 9,164
320,200 Medtronic, Inc. 16,470
----------
38,208
----------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
GROWTH EQUITY FUND (continued)
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
COMMON STOCKS - 95.1% (CONT'D.)
HOME FURNISHINGS - 0.9%
143,200 Gemstar International Group Ltd.* $12,315
----------
INSURANCE - 2.0%
132,300 American International Group, Inc. 14,486
124,000 Hartford Life, Inc. 5,813
67,300 Marsh & McLennan Cos. 7,424
----------
27,723
----------
MEDIA - 4.4%
100,000 Adelphia Communications 4,900
80,500 Clear Channel Communications 5,560
152,500 Comcast Corp. 6,615
215,000 Disney (The Walt) Co. 8,895
108,800 Hispanic Broadcasting Corp.* 12,322
217,800 Time Warner, Inc. 21,779
----------
60,071
----------
METALS-DIVERSIFIED - 1.1%
213,000 Alcoa, Inc. 14,963
----------
MISCELLANEOUS MANUFACTURING - 4.2%
369,700 General Electric Co. 57,373
----------
OIL & GAS PRODUCERS - 7.0%
116,000 Chevron Corp. 10,723
274,200 Ensco International, Inc. 9,906
457,460 EOG Resources, Inc. 9,693
407,200 Exxon Corp. 31,685
356,500 Royal Dutch Petroleum Co. 20,521
148,157 Transocean Sedco Forex, Inc. 7,602
215,000 USX-Marathon Group Inc. 5,603
----------
95,733
----------
OIL & GAS SERVICES - 1.8%
147,000 BJ Services Co.* 10,860
181,600 Schlumberger Ltd. 13,892
----------
24,752
----------
PHARMACEUTICALS - 4.4%
151,600 American Home Products Corp. 8,130
313,400 Bristol-Myers Squibb Co. 18,098
121,600 Lilly (Eli) & Co. 7,661
164,000 Merck & Co., Inc. 10,188
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
244,800 Pfizer, Inc. $ 8,951
203,000 Schering-Plough Corp. 7,460
----------
60,488
----------
PIPELINES - 1.5%
217,400 Enron Corp. 16,277
102,000 Williams (The) Cos., Inc. 4,482
----------
20,759
----------
REITS - 1.1%
264,600 Pinnacle Holdings, Inc.* 14,619
----------
RETAIL - 7.2%
160,000 Circuit City Stores 9,740
499,880 Home Depot (The), Inc. 32,237
140,400 Kohl's Corp.* 14,391
583,800 Walgreen Co. 15,033
501,400 Wal-Mart Stores, Inc. 27,828
----------
99,229
----------
SEMICONDUCTORS - 7.2%
68,800 Altera Corp.* 6,140
178,000 Applied Materials, Inc.* 16,777
300,100 Intel Corp. 39,594
145,600 National Semiconductor Corp.* 8,827
119,600 Texas Instruments, Inc. 19,136
106,300 Xilinx, Inc.* 8,803
----------
99,277
----------
SOFTWARE - 5.7%
110,600 America Online, Inc.* 7,438
24,000 Ariba, Inc.* 5,031
75,500 Aspect Development, Inc.* 4,860
352,000 Fiserv, Inc.* 13,090
236,000 Microsoft Corp.* 25,075
237,000 Oracle Corp.* 18,501
32,500 Siebel Systems, Inc.* 3,882
----------
77,877
----------
TELECOMMUNICATION EQUIPMENT - 7.3%
85,600 Corning, Inc. 16,606
319,300 Crown Castle International Corp.* 12,093
61,800 Motorola, Inc. 8,799
99,000 Nextel Communications, Inc.* 14,677
159,500 Nortel Networks Corp. 20,097
9,053 Palm, Inc.* 406
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
69,000 Qualcomm, Inc.* $ 10,303
28,000 SDL, Inc.* 5,961
21,093 Sycamore Networks, Inc.* 2,721
155,200 Williams Communications Group* 8,041
----------
99,704
----------
TELEPHONE - 3.4%
159,700 Bell Atlantic Corp. 9,762
287,000 BellSouth Corp. 13,488
285,300 MCI WorldCom, Inc.* 12,928
134,000 SBC Communications, Inc. 10,561
----------
46,739
----------
Total Common Stocks
(cost $839,791) 1,302,006
----------
PRINCIPAL
AMOUNT
(000S)
----------
SHORT-TERM INVESTMENT - 3.3%
(cost $44,696)
$44,696 UBS A.G., Grand Cayman,
Eurodollar Time Deposits,
6.375%, 4/3/00 $ 44,696
----------
Total Investments - 98.4%
(cost $884,487) 1,346,702
Other Assets less Liabilities - 1.6% 22,178
----------
NET ASSETS - 100.0% $1,368,880
==========
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
SELECT EQUITY FUND
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
COMMON STOCKS - 96.4%
BANKS - 2.4%
270,000 Bank of Tokyo-Mitsubishi Ltd. ADR $ 3,831
100,000 Chase Manhattan Corp. 8,718
----------
12,549
----------
BIOTECHNOLOGY - 0.8%
29,000 Genentech, Inc.* 4,408
----------
COMMERCIAL SERVICES - 1.1%
110,000 Paychex, Inc. 5,761
----------
COMPUTERS - 12.1%
32,000 Brocade Communications System, Inc.* 5,738
206,500 Cisco Systems, Inc.* 15,965
74,000 EMC Corp.* 9,250
33,500 Hewlett-Packard Co. 4,441
28,000 Juniper Networks, Inc.* 7,380
18,000 Redback Networks, Inc.* 5,399
37,000 RSA Security, Inc.* 1,917
120,000 Sun Microsystems, Inc.* 11,244
15,000 VeriSign, Inc.* 2,243
----------
63,577
----------
DIVERSIFIED FINANCIAL SERVICES - 8.6%
57,500 American Express Co. 8,564
115,000 Capital One Financial Corp. 5,513
165,750 Citigroup, Inc. 9,831
85,000 Edwards (A.G.), Inc. 3,400
49,000 Merrill Lynch & Co., Inc. 5,145
96,000 Morgan Stanley Dean Witter & Co. 7,830
87,000 Schwab (Charles) Corp. 4,943
----------
45,226
----------
ELECTRONICS - 1.5%
75,000 Integrated Device Technology, Inc.* 2,972
50,000 PE Corp.-PE Biosystems Group 4,825
----------
7,797
----------
INSURANCE - 2.5%
64,937 American International Group, Inc. 7,111
57,250 Marsh & McLennan Cos., Inc. 6,315
----------
13,426
----------
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
LEISURE TIME - 1.1%
70,000 Harley-Davidson, Inc. $ 5,556
----------
MEDIA - 3.6%
105,000 AT&T - Liberty Media Group* 6,220
39,000 MediaOne Group, Inc.* 3,159
94,500 United Pan-Europe Communications
NV ADR* 4,684
41,500 Univision Communications, Inc.* 4,690
----------
18,753
----------
METALS - 1.1%
85,000 Alcoa, Inc. 5,971
----------
MISCELLANEOUS MANUFACTURING - 4.6%
88,000 General Electric Co. 13,657
205,000 Tyco International Ltd. 10,224
----------
23,881
----------
OIL & GAS PRODUCERS - 6.2%
60,000 Atlantic Richfield Co. 5,100
58,000 BJ Services Co.* 4,285
110,000 Ensco International, Inc. 3,974
78,924 Exxon Mobil Corp. 6,141
111,000 Schlumberger Ltd. 8,491
85,008 Transocean Sedco Forex, Inc. 4,362
----------
32,353
----------
PHARMACEUTICALS - 3.1%
150,000 American Home Products Corp. 8,044
30,000 Forest Laboratories, Inc.* 2,535
60,000 Warner-Lambert Co. 5,850
----------
16,429
----------
PIPELINES - 2.9%
140,000 Enron Corp. 10,483
110,000 Williams (The) Cos., Inc. 4,833
----------
15,316
----------
RETAIL - 4.6%
75,000 Best Buy Co., Inc.* 6,450
45,000 Home Depot (The), Inc. 2,903
62,000 Kohl's Corp.* 6,355
80,000 Walgreen Co. 2,060
110,000 Wal-Mart Stores, Inc. 6,105
----------
23,873
----------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
SEMICONDUCTORS - 7.4%
101,500 Applied Materials, Inc.* $ 9,566
40,000 Applied Micro Circuits Corp.* 6,003
41,500 Broadcom Corp.* 10,079
25,000 PMC - Sierra, Inc.* 5,092
25,000 Qlogic Corp.* 3,388
30,000 Texas Instruments, Inc. 4,800
----------
38,928
----------
SOFTWARE - 12.3%
10,000 Ariba, Inc.* 2,096
35,000 BEA Systems, Inc.* 2,568
48,000 Citrix Systems, Inc.* 3,180
54,000 Exodus Communications, Inc.* 7,587
32,500 Inktomi Corp.* 6,338
75,000 J.D. Edwards & Co.* 2,442
69,000 Microsoft Corp.* 7,331
172,000 Oracle Corp.* 13,427
40,000 Peregrine Systems, Inc.* 2,683
60,000 Tibco Software, Inc.* 4,890
45,000 Veritas Software Corp.* 5,895
35,000 Yahoo! Inc.* 5,998
----------
64,435
----------
TELECOMMUNICATION EQUIPMENT - 13.6%
60,000 Advanced Fibre Communications, Inc.* 3,762
27,000 Comverse Technology, Inc.* 5,103
43,000 Corning, Inc. 8,342
70,000 Digital Microwave Corp.* 2,371
36,000 E-Tek Dynamics, Inc.* 8,469
84,000 JDS Uniphase Corp.* 10,126
54,400 Motorola, Inc. 7,745
65,000 Nortel Networks Corp. 8,190
18,500 Powerwave Technologies, Inc.* 2,313
38,000 SDL, Inc.* 8,089
95,000 Spectrasite Holdings, Inc.* 2,690
34,000 Sycamore Networks, Inc.* 4,386
----------
71,586
----------
TELECOMMUNICATIONS - 6.9%
25,000 Colt Telecom Group PLC ADR* 4,947
38,000 General Motor Corp., Class H 4,731
61,000 Nextel Communications, Inc.* 9,043
30,000 NTL, Inc.* 2,784
110,000 SK Telecom ADR 4,290
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
100,000 Vodafone AirTouch PLC ADR $ 5,556
15,000 VoiceStream Wireless Corp.* 1,932
45,000 WinStar Communications, Inc.* 2,700
----------
35,983
----------
Total Common Stocks
(Cost $343,085) 505,808
----------
PRINCIPAL
AMOUNT
(000S)
----------
SHORT-TERM INVESTMENT - 1.6%
(cost $8,354)
$8,354 UBS A.G., Grand Cayman,
Eurodollar Time Deposits,
6.375%, 4/3/00 8,354
----------
Total Investments - 98.0%
(Cost $351,439) 514,162
Other Assets Less Liabilities - 2.0% 10,414
----------
NET ASSETS - 100.0% $524,576
==========
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
MID CAP GROWTH FUND
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
COMMON STOCKS - 98.0%
ADVERTISING - 0.5%
50,000 Omnicom Group, Inc. $ 4,672
----------
BANKS - 1.2%
170,000 Fifth Third Bancorp 10,710
----------
BIOTECHNOLOGY - 2.5%
52,500 Biogen, Inc.* 3,668
156,000 Cell Genesys, Inc.* 3,325
100,000 Chiron Corp.* 4,988
10,973 Diversa Corp.* 516
50,000 Genentech, Inc.* 7,600
20,000 Human Genome Sciences, Inc.* 1,661
----------
21,758
----------
COMMERCIAL SERVICES - 1.8%
300,000 Paychex, Inc. 15,712
----------
COMPUTERS - 5.7%
46,800 Brocade Communications System* 8,392
92,000 Foundry Networks, Inc.* 13,225
81,000 National Computer Systems, Inc. 4,111
168,400 Network Appliance, Inc.* 13,935
45,000 Radisys Corp.* 2,705
90,000 Silicon Storage Technology, Inc.* 6,649
----------
49,017
----------
DISTRIBUTION/WHOLESALE - 1.2%
200,000 Costco Wholesale Corp. 10,512
----------
DIVERSIFIED FINANCIAL SERVICES - 1.9%
225,000 Edwards (A.G.), Inc. 9,000
150,000 Knight/Trimark Group, Inc.* 7,650
----------
16,650
----------
ELECTRONICS - 12.4%
83,000 Agilent Technologies, Inc.* 8,632
84,000 Audiovox Corp.* 3,664
140,000 Celestica, Inc.* 7,429
30,000 Coherent, Inc.* 1,560
72,900 Credence Systems Corp.* 9,122
113,500 Cymer, Inc.* 5,675
230,000 Integrated Device Technology, Inc.* 9,114
328,000 Jabil Circuit, Inc.* 14,186
140,000 Kent Electronics Corp.* 4,086
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
70,200 Maxim Integrated Products* $ 4,989
81,000 Micrel, Inc.* 7,776
45,000 PE Corp.-PE Biosystems Group 4,342
250,000 Vishay Intertechnology, Inc.* 13,906
121,600 Vitesse Semiconductor Corp.* 11,704
----------
106,185
----------
ENTERTAINMENT - 2.4%
159,000 Macrovision Corp.* 13,694
120,000 Zomax, Inc.* 7,230
----------
20,924
----------
HEALTH CARE - 2.5%
52,500 Allergan, Inc. 2,625
94,500 Arthrocare Corp.* 8,694
156,000 Cytyc Corp.* 7,527
34,000 Techne Corp.* 2,346
----------
21,192
----------
MACHINERY-DIVERSIFIED - 1.1%
150,000 PRI Automation, Inc.* 9,169
----------
MEDIA - 1.1%
56,400 Univision Communications, Inc.* 6,373
120,000 USA Networks, Inc.* 2,708
----------
9,081
----------
OIL & GAS PRODUCERS - 4.0%
40,000 Baker Hughes, Inc. 1,210
40,300 Diamond Offshore Drilling 1,609
130,000 Hanover Compressor Co.* 7,394
70,000 Transocean Sedco Forex, Inc. 3,592
350,000 Weatherford International, Inc.* 20,628
----------
34,433
----------
PHARMACEUTICALS - 3.8%
17,500 Abgenix, Inc.* 2,417
125,000 Alza Corp.* 4,695
89,200 Biovail Corp.* 3,953
100,000 Elan Corp. PLC* 4,750
87,000 Ilex Oncology, Inc.* 3,654
60,000 Medarex, Inc.* 3,015
40,000 Pharmacopeia, Inc.* 1,960
108,000 Trimeris, Inc.* 5,393
75,000 Tularik, Inc.* 2,316
----------
32,153
----------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
REITS - 0.5%
77,523 Pinnacle Holdings, Inc.* $ 4,283
----------
RETAIL - 6.4%
350,000 Bed Bath & Beyond, Inc.* 13,781
230,000 Best Buy Co., Inc.* 19,780
180,000 Kohl's Corp.* 18,450
50,000 Ventro Corp.* 2,832
----------
54,843
----------
SEMICONDUCTORS - 9.2%
35,000 Alpha Industries* 3,325
95,000 Applied Micro Circuits Corp.* 14,256
56,000 Broadcom Corp.* 13,601
107,900 Conexant Systems, Inc.* 7,661
94,500 Cree, Inc.* 10,667
39,300 Globespan, Inc.* 4,006
43,000 Qlogic Corp.* 5,826
88,200 Semtech Corp.* 5,650
60,000 Transwitch Corp.* 5,768
114,000 Triquint Semiconductor, Inc.* 8,379
----------
79,139
----------
SOFTWARE - 17.4%
50,000 724 Solutions, Inc.* 6,225
105,000 Actuate Corp.* 5,650
24,100 Akamai Technologies, Inc.* 3,875
56,400 AppNet, Inc.* 2,651
175,000 Aremissoft Corp.* 5,950
105,000 BEA Systems, Inc.* 7,704
106,400 Citrix Systems, Inc.* 7,049
52,500 Clarent Corp.* 4,735
43,700 Commerce One, Inc.* 6,522
52,400 Exchange Applications, Inc.* 2,773
43,700 Exodus Communications, Inc.* 6,140
13,454 Fairmarket, Inc.* 328
35,000 I2 Technologies, Inc.* 4,274
87,000 Informatica Corp.* 6,683
26,000 Infospace, Inc.* 3,781
41,000 Inktomi Corp.* 7,995
21,900 Internet Capital Group LLC* 1,978
18,152 Matrixone, Inc.* 725
118,000 Mercury Interactive Corp.* 9,352
65,000 Peregrine Systems, Inc.* 4,359
87,000 Rational Software Corp.* 6,656
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
180,000 Razorfish, Inc.* $ 4,950
111,000 Research In Motion Ltd.* 11,821
60,000 Tenfold Corp.* 3,630
105,000 Tibco Software, Inc.* 8,558
2,675 Universal Access, Inc.* 90
178,400 Verity, Inc.* 7,270
48,000 Vignette Corp.* 7,692
----------
149,416
----------
TELECOMMUNICATION EQUIPMENT - 21.1%
70,000 Adtran, Inc.* 4,161
245,000 Advanced Fibre Communication* 15,358
65,000 Amdocs Ltd.* 4,790
205,600 American Tower Corp. * 10,151
49,300 Comverse Technology, Inc.* 9,318
91,200 Copper Mountain Networks* 7,473
52,500 Corning, Inc. 10,185
74,500 Digital Lightwave, Inc.* 4,642
113,000 Ditech Communications Corp.* 11,985
100,000 Echostar Communications Corp.* 7,900
87,000 Harmonic, Inc.* 7,243
87,000 JDS Uniphase Corp.* 10,489
30,000 Level 3 Communications, Inc.* 3,172
101,000 McLeodUSA, Inc.* 8,566
10,000 Next Level Communications, Inc.* 1,087
43,815 Nextel Partners, Inc.* 1,271
80,000 Nortel Networks Corp. 10,080
40,000 Northeast Optic Network, Inc.* 3,382
75,000 Powerwave Technologies, Inc.* 9,375
71,000 RF Micro Devices, Inc.* 9,541
79,000 SDL, Inc.* 16,817
300,000 Spectrasite Holdings, Inc.* 8,494
19,000 Sycamore Networks, Inc.* 2,451
60,000 Western Wireless* 2,749
----------
180,680
----------
TELEPHONE - 1.3%
89,600 Nextlink Communications* 11,082
----------
Total Common Stocks
(Cost $635,120) 841,611
----------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
MID CAP GROWTH FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
SHORT-TERM INVESTMENT - 1.9%
(cost $16,705)
$16,705 UBS AG, Grand Cayman,
Eurodollar Time Deposit,
6.375%, 4/3/00 $ 16,705
----------
Total Investments - 99.9%
(cost $651,825) 858,316
Other Assets less Liabilities - 0.1% 802
----------
Net Assets - 100.0% $859,118
==========
<PAGE>
NORTHERN FUNDS Annual Report
SCHEDULES OF INVESTMENTS MARCH 31, 2000
SMALL CAP INDEX FUND
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
COMMON STOCKS - 96.3%
ADVERTISING - 0.7%
2,041 Advo, Inc.* $ 51
1,900 E4L, Inc.* 4
3,200 Getty Images, Inc.* 115
100 Grey Advertising, Inc. 41
4,550 Ha-Lo Industries, Inc.* 36
2,000 Marketing Services Group, Inc.* 35
700 Modem Media Poppe Tyson, Inc.* 23
2,400 Penton Media, Inc. 62
3,700 R.H. Donnelley Corp. 63
4,800 Sitel Corp.* 33
4,800 True North Communications, Inc. 189
4,100 Valuevision International, Inc., Class A* 170
----------
822
----------
AEROSPACE/DEFENSE - 0.8%
3,000 AAR Corp. 50
2,000 Aeroflex, Inc.* 99
1,100 Alliant Techsystems, Inc.* 65
2,600 BE Aerospace, Inc.* 15
500 Curtiss-Wright Corp. 18
1,740 Fairchild Corp. (The), Class A* 12
3,700 Gencorp, Inc. 29
500 Heico Corp. 7
2,500 Kaman Corp., Class A 24
1,300 Kellstrom Industries, Inc.* 7
4,100 Orbital Sciences Corp.* 61
1,000 Primex Technologies, Inc. 21
2,400 Remec, Inc.* 121
1,100 Sequa Corp., Class A* 44
5,600 Titan Corp.* 286
1,300 Triumph Group, Inc.* 38
----------
897
----------
AGRICULTURE - 0.2%
1,200 Agribrands International, Inc.* 47
3,900 Cadiz, Inc.* 33
4,300 Delta & Pine Land Co. 85
2,400 Hines Horticulture, Inc.* 19
700 Tejon Ranch Co. 16
----------
200
----------
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
AIRLINES - 0.4%
6,200 Airtran Holdings, Inc.* $ 27
2,700 Alaska Airgroup, Inc.* 81
3,673 America West Holdings Corp., Class B* 57
400 Amtran, Inc.* 7
1,300 Atlantic Coast Airlines Holdings, Inc.* 34
1,900 Frontier Airlines, Inc.* 23
3,300 Mesa Air Group, Inc.* 21
1,400 Mesaba Holdings, Inc.* 16
1,600 Midwest Express Holdings, Inc.* 41
2,300 Skywest, Inc. 90
6,500 Trans World Airlines, Inc.* 15
----------
412
----------
APPAREL - 0.5%
5,700 Burlington Industries, Inc.* 25
1,000 Columbia Sportswear Co.* 25
1,500 Donna Karan International, Inc.* 12
600 Global Sports, Inc.* 11
800 Guess?, Inc.* 26
3,050 Kellwood Co. 54
700 K-Swiss, Inc., Class A 10
3,486 Nautica Enterprises, Inc.* 41
1,300 Oshkosh B'Gosh, Inc., Class A 23
700 Oxford Industries, Inc. 13
2,500 Phillips-Van Heusen Corp. 19
2,350 Quiksilver, Inc.* 41
5,100 Reebok International Ltd.* 47
3,100 Russell Corp. 44
5,100 Stride Rite Corp. 41
600 Tarrant Apparel Group* 5
1,100 Timberland Co., Class A* 56
500 Tropical Sportswear International, Inc.* 6
6,600 Unifi, Inc.* 59
4,600 Wolverine World Wide, Inc. 51
----------
609
----------
AUTO MANUFACTURERS - 0.1%
1,100 ASV, Inc.* 17
1,600 Oshkosh Truck Corp. 50
2,400 Wabash National Corp. 33
----------
100
----------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
SMALL CAP INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
COMMON STOCKS - 96.3% (CONT'D.)
AUTO PARTS & EQUIPMENT - 0.5%
2,300 Aftermarket Technology Corp.* $ 29
1,100 American Axle & Manufacturing
Holdings, Inc.* 16
2,900 Arvin Industries, Inc. 66
1,400 Bandag, Inc. 32
6,900 Collins & Aikman Corp. 39
2,400 Delco Remy International, Inc.* 18
1,700 Dura Automotive Systems, Inc.* 29
2,100 Exide Corp. 25
2,000 Hayes Lemmerz International, Inc.* 38
4,450 Miller Industries, Inc. * 17
2,300 OEA, Inc. 22
1,975 Simpson Industries, Inc. 19
900 Standard Motor Products, Inc. 13
2,200 Superior Industries International, Inc. 70
1,750 Titan International, Inc. 13
4,500 Tower Automotive, Inc.* 74
1,612 Wynn's International, Inc. 22
----------
542
----------
BANKS - 4.1%
1,204 1st Source Corp. 24
1,000 Alabama National Bancorp. 19
3,182 Amcore Financial, Inc. 57
900 Anchor Financial Corp. 26
1,300 Area Bancshares Corp. 26
500 Bancfirst Corp. 13
700 Bancfirst Ohio Corp. 15
890 Banco Santander Puerto Rico 11
6,380 Bancorpsouth, Inc. 104
5,600 BancWest Corp. 111
1,268 Bank of Granite Corp. 25
2,610 Banknorth Group, Inc. 70
2,742 Bay View Capital Corp. 21
1,307 BOK Financial Corp.* 24
1,842 Brenton Banks, Inc. 15
900 BSB Bancorp, Inc. 19
1,884 BT Financial Corp. 29
650 Capital City Bank Group, Inc. 13
2,900 Carolina First Corp. 38
1,000 Cathay Bancorp, Inc. 46
2,177 Centennial Bancorp* 21
1,100 Century South Banks, Inc. 23
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
1,521 Chemical Financial Corp. $ 34
3,157 Chittenden Corp. 94
4,450 Citizens Banking Corp. 87
1,899 City Holding Co. 23
3,264 Commerce Bancorp, Inc. 121
5,200 Community First Bankshares, Inc. 83
1,368 Community Trust Bancorp, Inc. 25
1,000 Corus Bankshares, Inc. 24
900 CPB, Inc. 22
1,618 CVB Financial Corp. 23
2,500 East-West Bancorp, Inc. 28
1,043 F & M Bancorp. 19
2,531 F & M National Corp. 56
700 Farmers Capital Bank Corp. 24
1,200 FCNB Corp. 17
2,550 First Bancorp. 45
1,200 First Busey Corp. 23
1,700 First Charter Corp. 22
600 First Citizens Bancshares, Inc., Class A 34
600 First Commerce Bancshares, Inc., Class B 21
6,900 First Commonwealth Financial Corp. 60
3,961 First Financial Bancorp 71
1,114 First Financial Bankshares, Inc. 29
653 First Financial Corp. 23
1,350 First Merchants Corp. 27
3,909 First Midwest Bancorp, Inc. 95
1,100 First Republic Bank* 22
2,800 First United Bancshares, Inc. 29
2,261 FNB Corp. 42
1,600 Frontier Financial Corp. 30
1,170 GBC Bancorp 27
1,000 Glacier Bancorp, Inc. 14
1,710 Grand Premier Financial, Inc. 24
1,500 Greater Bay Bancorp 60
900 Hamilton Bancorp, Inc.* 14
975 Hancock Holding Co. 30
870 Harleysville National Corp. 24
5,597 Hudson United Bancorp 121
4,082 Imperial Bancorp* 127
1,300 Independent Bank Corp. 16
1,375 International Bancshares Corp. 56
1,750 Interwest Bancorp, Inc. 24
1,568 Investors Financial Services Corp. 92
1,200 Irwin Financial Corp. 18
2,300 Local Financial Corp.* 20
2,100 Merchants New York Bancorp 35
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
325 Michigan Financial Corp. $ 9
945 MidAmerica Bancorp 25
1,300 Mid-State Bancshares 32
900 Midwest Banc Holdings, Inc. 12
700 Mississippi Valley Bancshares, Inc. 17
1,600 National Bancorp of Alaska, Inc. 60
1,943 National City Bancshares, Inc. 37
1,963 National Penn Bancshares, Inc. 40
2,004 NBT Bancorp, Inc. 29
950 Omega Financial Corp. 25
3,693 One Valley Bancorp, Inc. 128
1,266 Oriental Financial Group 24
2,700 Pacific Capital Bancorp 65
960 Park National Corp. 84
700 Peoples Holding Co. 17
1,900 Premier National Bancorp, Inc. 29
2,843 Provident Bankshares Corp. 45
1,100 R & G Financial Corp., Class B 10
5,017 Republic Bancorp, Inc. 47
600 Republic Bancorp, Inc., Class A 5
600 Republic Bancshares, Inc.* 8
5,532 Republic Security Financial Corp. 36
2,100 Riggs National Corp. 26
3,000 S & T Bancorp, Inc. 51
1,100 Sandy Spring Bancorp, Inc. 23
1,200 Second Bancorp, Inc. 21
1,050 Shoreline Financial Corp. 16
2,200 Silicon Valley Bancshares 158
800 Simmons First National Corp., Class A 21
8,654 Sky Financial Group, Inc. 141
3,100 Southwest Bancorp of Texas* 60
2,850 Sterling Bancshares, Inc. 27
900 Sterling Financial Corp. 17
4,137 Susquehanna Bancshares, Inc. 57
1,550 Texas Regional Bancshares, Inc., Class A 39
1,800 Trust Company of New Jersey 35
5,964 Trustco Bank Corp. 70
1,906 UMB Financial Corp. 70
4,700 United Bankshares, Inc. 103
1,738 United National Bancorp. 37
1,500 U.S. Bancorp, Inc. 17
1,060 USB Holding Co, Inc. 16
4,700 West Holding Company, Inc. 45
1,740 West Coast Bancorp 17
2,200 Wesbanco, Inc. 42
2,550 Whitney Holding Corp. 83
----------
4,681
----------
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
BEVERAGES - 0.2%
2,000 Beringer Wine Estates Holdings, Inc.,
Class B* $ 72
709 Buenos Aires Embotelladora SA* -
1,800 Canandaigua Brands, Inc., Class A* 92
127 Coca-Cola Bottling Co. Consolidated 7
4,050 Crawford & Co., Class B 52
100 Farmer Brothers Co. 18
900 Robert Mondavi Corp., Class A* 31
----------
272
----------
BIOTECHNOLOGY - 3.3%
1,900 Affymetrix, Inc.* 282
1,500 Aviron* 42
900 Bio-Rad Laboratories, Inc., Class A* 25
5,900 Bio-Technology General Corp.* 91
1,500 Entremed, Inc.* 89
2,397 Enzo Biochem, Inc.* 169
4,100 Enzon, Inc.* 155
5,100 Human Genome Sciences, Inc.* 424
4,700 IDEC Pharmaceuticals Corp.* 462
2,700 Incyte Pharmaceuticals, Inc.* 235
1,500 Inhale Therapeutic Systems, Inc.* 112
700 Invitrogen Corp.* 41
4,323 Liposome Co. (The), Inc.* 76
4,100 Millennium Pharmaceuticals, Inc.* 532
3,345 Organogenesis, Inc.* 40
5,800 PE Corp. - Celera Genomics Group* 531
2,100 Protein Design Labs, Inc.* 167
1,800 Regeneron Pharmaceuticals, Inc.* 53
1,000 Safescience, Inc.* 13
2,150 Serologicals Corp.* 12
2,200 Transkaryotic Therapies, Inc.* 122
1,800 Vical, Inc.* 60
----------
3,733
----------
BUILDING MATERIALS - 0.7%
3,100 Apogee Enterprises, Inc. 12
600 Butler Manufacturing Co. 15
900 Centex Construction Products, Inc. 24
3,300 Comfort Systems USA, Inc.* 21
6,000 Dal-Tile International, Inc.* 48
2,207 Elcor Corp. 76
2,040 Florida Rock Industries, Inc. 57
1,400 Genlyte Group, Inc.* 27
5,600 Hussmann International, Inc. 71
See Notes to the Financial Statements.
SCHEDULES OF INVESTMENTS MARCH 31, 2000
SMALL CAP INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
COMMON STOCKS - 96.3% (CONT'D.)
BUILDING MATERIALS - 0.7% (CONT'D.)
1,100 LSI Industries, Inc. $ 21
300 Mestek, Inc.* 5
2,500 Modine Manufacturing Co. 63
2,000 NCI Building Systems, Inc.* 38
1,100 Nortek, Inc.* 24
3,100 Rayonier, Inc. 151
1,100 Republic Group, Inc. 12
900 Simpson Manufacturing Co., Inc.* 36
2,300 Texas Industries, Inc. 72
500 Trex Co., Inc.* 19
1,600 Universal Forest Products, Inc. 20
----------
812
----------
CHEMICALS - 1.5%
6,900 Airgas, Inc.* 57
2,700 Albemarle Corp. 56
2,400 Arch Chemicals, Inc. 48
700 Bush Boake Allen, Inc.* 19
2,600 Cambrex Corp. 113
2,000 Chemfirst, Inc. 39
12,810 CK Witco Corp. 131
4,700 Cytec Industries, Inc.* 144
6,900 Ethyl Corp. 21
3,950 Ferro Corp. 70
2,300 Geon Co. 49
3,400 Georgia Gulf Corp. 88
1,500 H.B. Fuller Co. 60
5,400 Hanna (M.A.) Co. 61
1,700 International Specialty Products, Inc.* 11
2,534 Lilly Industries, Inc., Class A 31
1,700 Macdermid, Inc. 45
2,100 Minerals Technologies, Inc. 94
2,937 Mississippi Chemical Corp. 20
2,400 NL Industries, Inc. 31
1,300 Octel Corp.* 13
4,500 Olin Corp. 80
2,650 OM Group, Inc. 121
3,600 Omnova Solutions, Inc. 20
3,400 Schulman (A.), Inc. 45
1,700 Spartech Corp. 58
600 Stepan Co. 13
3,600 Terra Industries, Inc. 8
3,500 U.S. Plastic Lumber Co.* 32
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
7,300 W.R. Grace & Co.* $ 93
3,800 Wellman, Inc. 75
----------
1,746
----------
COAL - 0.0%
1,900 Arch Coal, Inc. 13
2,500 Consolidated Energy, Inc. 26
----------
39
----------
COMMERCIAL SERVICES - 3.6%
2,000 Aaron Rents, Inc. 30
1,824 ABM Industries, Inc. 43
1,000 Administaff, Inc.* 39
900 AHL Services, Inc.* 9
700 Albany Molecular Research, Inc.* 41
2,400 Ameripath, Inc.* 20
3,900 Amre, Inc.* -
1,100 Applied Analytical Industries, Inc.* 11
2,400 Avis Group Holdings, Inc. 42
500 Bacou USA, Inc.* 8
2,950 Banta Corp. 54
293 Berlitz International, Inc.* 3
4,300 Billing Concepts Corp.* 30
4,100 Bowne & Co., Inc. 53
1,400 Bright Horizons Family Solutions, Inc.* 30
2,900 Budget Group, Inc., Class A* 14
1,200 Burns International Services, Inc.* 13
800 Career Education Corp.* 28
500 Careerbuilder, Inc.* 2
22,100 Caremark Rx, Inc.* 93
1,100 Carey International, Inc.* 19
1,300 Carriage Services, Inc., Class A* 5
1,200 CDI Corp.* 23
1,350 Central Parking Corp. 27
7,900 Century Business Services, Inc.* 23
800 Charles River Associates, Inc.* 16
1,000 Chemed Corp. 30
2,200 Coinstar, Inc.* 28
1,400 Consolidated Graphics, Inc.* 18
500 Corinthian Colleges, Inc.* 8
1,100 Cornell Corrections, Inc.* 12
900 Corporate Executive Board Co.* 46
700 Costar Group, Inc.* 26
900 CPI Corp. 21
3,300 Data Broadcasting Corp.* 25
1,100 Data Transmission Network, Inc.* 31
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
1,100 DBT Online, Inc.* $ 20
1,400 Diamond Tech Partners, Inc.* 92
2,700 Dollar Thrifty Automotive Group, Inc.* 46
500 Duff & Phelps Credit Rating Co. 50
2,100 Education Management Corp.* 30
1,574 Electro Rent Corp.* 18
2,822 Encompass Services Corp.* 16
1,300 F.Y.I., Inc.* 35
1,900 First Consulting Group, Inc.* 31
5,400 First Health Group Corp.* 171
600 Forrester Research, Inc.* 33
2,300 Franklin Covey Co.* 17
1,600 Heidrick & Struggles International, Inc.* 64
3,200 Hooper Holmes, Inc. 110
3,400 Integrated Electrical Services, Inc.* 18
6,030 Interim Services, Inc.* 112
3,650 Iron Mountain, Inc.* 124
1,625 ITT Educational Services, Inc.* 26
2,000 Kelly Services, Inc., Class A 48
2,400 Korn/Ferry International* 71
1,300 Kroll-O'Gara Co.* 14
3,900 Labor Ready, Inc.* 39
900 Landauer, Inc. 16
2,100 Lason, Inc.* 14
1,200 Learning Tree International, Inc.* 43
4,300 Mail-Well, Inc.* 37
1,300 Maximus, Inc.* 40
1,032 McGrath Rentcorp 16
4,000 Medquist, Inc.* 109
1,400 Memberworks, Inc.* 56
1,800 Midas, Inc. 43
2,600 National Equipment Services, Inc.* 16
800 National Processing, Inc.* 8
4,500 NationsRent, Inc.* 24
4,100 Navigant Consulting Co.* 45
1,350 NCO Group, Inc.* 43
1,300 Neff Corp.* 9
1,100 Nextera Enterprises, Inc., Class A* 9
1,975 NFO Worldwide, Inc.* 43
5,500 Ogden Corp. 66
1,200 On Assignment, Inc.* 54
4,500 Orthodontic Centers of America, Inc.* 84
2,800 Parexel International Corp.* 26
1,700 Pediatrix Medical Group, Inc.* 12
2,900 Personnel Group of America, Inc.* 18
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
2,067 Pharmaceutical Product
Development Corp.* $ 35
8,100 Phycor, Inc.* 8
2,000 Plexus Corp.* 133
2,100 Prepaid Legal Services, Inc.* 62
2,200 Primark Corp.* 53
400 Professional Detailing, Inc.* 10
3,950 Profit Recovery Group International, Inc.* 73
2,200 Protection One, Inc.* 5
1,000 Provant, Inc.* 8
2,000 Proxymed, Inc.* 17
3,700 Quanta Services, Inc.* 225
4,060 Renaissance Worldwide, Inc.* 21
1,900 Rent-A-Center, Inc.* 29
1,887 Rent-Way, Inc.* 37
1,900 Rollins, Inc. 28
4,545 Romac International, Inc.* 41
1,100 Source Information Management Co.* 19
1,900 Staff Leasing, Inc.* 11
3,300 Staffmark, Inc.* 26
800 Startek, Inc.* 59
800 Strayer Education, Inc. 21
800 Superior Consultant Holdings Corp.* 13
2,400 Teletech Holdings, Inc.* 83
1,600 Towne Services, Inc.* 3
1,400 Track Data Corp.* 10
6,306 US Oncology, Inc.* 28
950 Volt Info Sciences, Inc.* 34
1,400 Wackenhut Corp., Class A 20
1,100 Wackenhut Corrections Corp.* 11
1,400 Xceed, Inc.* 34
----------
4,094
----------
COMPUTERS - 6.1%
1,100 Act Networks, Inc.* 11
4,500 Advanced Digital Info Corp.* 154
1,200 Anacomp, Inc.* 19
2,400 Analysts International Corp. 24
3,000 Ancor Communications, Inc.* 123
2,300 Anixter International, Inc.* 64
3,000 AnswerThink Consulting Group, Inc.* 73
2,050 Apex, Inc.* 76
3,000 Auspex Systems, Inc. 33
4,306 Avant Corp.* 54
3,100 Axent Technologies, Inc.* 58
1,600 Bell & Howell Co.* 50
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
SMALL CAP INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
COMMON STOCKS - 96.3% (CONT'D.)
COMPUTERS - 6.1% (CONT'D.)
2,100 Black Box Corp.* $ 145
1,200 Brooktrout, Inc.* 35
1,000 Caci International, Inc., Class A* 30
5,700 Cambridge Tech Partners, Inc.* 77
500 Catapult Communications Corp.* 5
78 Centennial Technologies, Inc.* 1
5,000 Ciber, Inc.* 103
600 Cognizant Tech Solutions Corp.* 38
2,600 Complete Business Solutions, Inc.* 58
5,300 Compucom Systems, Inc.* 28
3,450 Computer Horizons Corp.* 59
2,600 Computer Network Technology Corp.* 46
1,800 Computer Task Group, Inc.* 20
5,800 Concurrent Computer Corp.* 74
1,300 Cotelligent, Inc.* 8
1,750 Cybex Computer Products Corp.* 66
2,100 Echelon Corp.* 138
4,712 Eloyalty Corp.* 112
3,600 Emulex Corp.* 393
1,800 Entrust Technologies, Inc.* 153
2,100 Factset Research Systems, Inc. 57
3,600 Filenet Corp.* 107
2,998 Henry (Jack) & Associates, Inc. 111
2,715 Hutchinson Technology, Inc.* 48
1,400 Hypercom Corp.* 24
3,900 Igate Capital Corp.* 176
2,500 In Focus Systems, Inc.* 90
4,732 Inacom Corp.* 13
4,800 Intergraph Corp.* 43
3,600 Intervoice-Brite, Inc.* 104
29,900 Iomega Corp.* 114
2,800 ISS Group, Inc.* 326
7,300 Komag, Inc.* 28
1,275 Kronos, Inc.* 38
500 Manhattan Associates, Inc.* 17
7,600 Maxtor Corp.* 98
1,100 Maxwell Technologies, Inc.* 15
7,100 Mentor Graphics Corp.* 107
2,300 Mercury Computer Systems, Inc.* 112
3,750 Metamor Worldwide, Inc.* 106
700 Metro Information Svcs, Inc.* 10
1,100 Miami Computer Supply Corp.* 35
3,900 Micron Electronics, Inc.* 55
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
1,800 Micros Systems, Inc.* $ 113
3,500 MMC Networks, Inc.* 115
3,400 MTI Technology Corp.* 90
2,300 MTS Systems Corp. 18
3,500 National Computer Systems, Inc. 178
1,400 Network Peripherals, Inc.* 50
2,400 Publicard, Inc.* 23
1,200 QRS Corp.* 90
1,100 Radiant Systems, Inc.* 69
1,100 Radisys Corp.* 66
5,100 Read-Rite Corp.* 24
4,000 RSD Security, Inc.* 207
500 RWD Technologies, Inc.* 4
8,400 S3, Inc.* 176
5,400 Sandisk Corp.* 661
1,400 SCM Microsystems, Inc.* 136
2,500 Sykes Enterprises, Inc.* 48
600 Syntel, Inc.* 9
3,566 Systems & Computer Technology Corp.* 83
4,712 Technology Solutions Co.* 43
4,700 Tyler Technologies, Inc.* 28
2,700 Visual Networks, Inc.* 153
4,500 Wave Systems Corp., Class A* 180
14,300 Western Digital Corp.* 106
2,900 Xircom, Inc.* 107
----------
6,939
----------
COSMETICS/PERSONAL CARE - 0.0%
1,100 Chattem, Inc.* 16
----------
DISTRIBUTION/WHOLESALE - 0.5%
2,800 Anicom, Inc.* 17
2,000 Aviall, Inc.* 17
1,300 Aviation Sales Co.* 8
5,924 Brightpoint, Inc.* 73
3,800 Cellstar Corp.* 30
5,500 CHS Electronics, Inc.* 4
1,900 Daisytek International Corp.* 30
3,100 Handleman Co.* 28
2,575 Hughes Supply, Inc. 40
500 JLK Direct Distribution, Inc., Class A* 5
1,700 Keystone Automotive Industries, Inc.* 10
8,900 Merisel, Inc.* 15
1,400 Navarre Corp.* 6
3,662 Owens & Minor, Inc. 39
1,100 SCP Pool Corp.* 34
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
3,600 United Stationers, Inc.* $ 128
400 Valley Media, Inc.* 2
1,850 Watsco, Inc. 19
3,400 Wesco International, Inc.* 26
----------
531
----------
DIVERSIFIED FINANCIAL SERVICES - 1.5%
2,200 Advanta Corp., Class A 45
800 Advest Group, Inc. 15
2,600 Affiliated Managers Group, Inc.* 124
8,300 Americredit Corp.* 135
5,400 Amresco, Inc.* 7
4,400 Arcadia Financial Ltd.* 22
2,300 Charter Municipal Mortgage
Acceptance Corp. 28
3,800 Cityscape Financial Corp.* --
900 Compucredit Corp. 33
1,500 Conning Corp. 19
2,500 Credit Acceptance Corp.* 14
500 Creditrust Corp.* 2
1,386 Dain Rauscher Corp. 91
3,500 Doral Financial Corp. 40
1,100 DVI, Inc.* 16
3,300 Eaton Vance Corp. 142
900 Federal Agriculture Mortgage Corp., Class C* 14
1,200 Financial Federal Corp.* 22
6,600 Finet.com, Inc.* 8
1,700 Freedom Securities Corp. 27
2,600 Friedman Billings Ramsey, Inc., Class A* 28
2,828 Imperial Credit Industries, Inc.* 13
2,400 Jefferies Group, Inc. 55
800 John Nuveen Co., Class A 31
4,266 Metris Co., Inc. 166
3,135 Morgan Keegan, Inc. 55
1,200 National Discount Brokers Group, Inc.* 59
1,100 New Century Financial Corp.* 11
600 Nextcard, Inc.* 9
4,850 Phoenix Investment Partners, Ltd. 38
2,900 Pioneer Group, Inc.* 67
300 Prism Financial Corp.* 2
4,500 Raymond James Financial, Inc. 93
2,600 Resource America, Inc., Class A 19
2,248 Resource Bancshares Mortgage Group 9
100 Siebert Financial Corp. 1
1,800 Sierracities.com, Inc.* 24
1,302 Southwest Securities Group 57
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
400 Student Loan Corp. $ 16
5,900 Unicapital Corp.* 14
5,800 United Asset Management Corp. 100
500 WFM Financial, Inc.* 10
----------
1,681
----------
ELECTRIC - 1.5%
4,100 Avista Corp. 167
2,323 Black Hills Corp. 51
1,900 CH Energy Group, Inc. 58
2,500 Cleco Corp. 83
3,600 CMP Group, Inc. 105
2,300 Eastern Utilities Associates 72
6,600 El Paso Electric Co.* 68
1,900 Empire District Electric Co. 37
288 Energy East Corp. 6
3,600 Hawaiian Electric Industries, Inc. 115
4,200 Idacorp, Inc. 146
1,825 Madison Gas & Electric Co. 33
6,325 MDU Resources Group, Inc. 131
2,600 Northwestern Corp. 54
2,600 Otter Tail Power Co. 52
4,000 Public Service Co. of New Mexico 63
4,000 RGS Energy Group, Inc. 85
8,688 Sierra Pacific Resources 109
2,650 Sigcorp, Inc. 66
1,400 TNP Enterprises, Inc. 61
3,620 Unisource Energy Corp. 53
1,600 United Illuminating Co. 63
3,000 WPS Resources Corp. 78
----------
1,756
----------
ELECTRICAL COMPONENTS & EQUIPMENT - 1.2%
1,500 Alpine Group, Inc.* 14
1,700 American Superconductor Corp.* 76
3,600 Ametek, Inc. 69
4,277 Applied Power, Inc., Class A 122
3,691 Artesyn Technologies, Inc.* 70
2,700 Belden, Inc. 74
1,400 C&D Technologies, Inc. 83
3,150 Cable Design Technologies, Inc.* 107
4,500 C-Cube Microsystems, Inc.* 328
3,400 General Cable Corp. 27
2,200 Littelfuse, Inc.* 81
1,600 Power-One, Inc.* 97
3,000 Rayovac Corp.* 70
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
SMALL CAP INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
COMMON STOCKS - 96.3% (CONT'D.)
ELECTRICAL COMPONENTS &
EQUIPMENT - 1.2% (CONT'D.)
2,025 SLI, Inc. $ 34
5,000 UCAR International, Inc.* 66
2,600 Valence Technology, Inc.* 61
2,100 Vicor Corp.* 38
----------
1,417
----------
ELECTRONICS - 5.3%
5,000 Ampex Corp., Class A* 16
1,800 Amphenol Corp., Class A* 184
2,950 Anadigics, Inc.* 195
700 Analogic Corp. 26
1,800 Benchmark Electronics, Inc.* 67
3,048 BMC Industries, Inc. 17
2,269 Brady Corp., Class A 71
3,200 Checkpoint Systems, Inc.* 27
2,700 Coherent, Inc.* 140
2,200 Cohu, Inc. 92
2,400 Credence Systems Corp.* 300
3,080 CTS Corp. 176
550 Cubic Corp. 12
3,100 Cymer, Inc.* 155
4,100 DII Group, Inc.* 464
2,400 Dionex Corp.* 79
2,800 DSP Group, Inc.* 185
2,900 Electro Scientific Industries, Inc.* 168
4,400 Fisher Scientific International, Inc.* 196
3,000 Genrad, Inc.* 37
1,500 Hadco Corp.* 97
1,100 Harmon Industries, Inc. 20
2,500 Identix, Inc.* 70
1,600 Innovex, Inc. 16
9,400 Integrated Device Technologies, Inc.* 372
900 ITI Technologies, Inc.* 27
4,200 Kemet Corp.* 266
3,100 Kent Electronics Corp.* 90
800 Mechanical Technology, Inc.* 57
3,942 Methode Electronics, Inc., Class A 199
4,300 Mettler-Toledo International, Inc.* 176
3,200 Micrel, Inc.* 307
1,100 Molecular Devices Corp.* 84
500 Moog, Inc., Class A* 9
1,000 Park Electrochemical Corp. 25
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
4,620 Paxar Corp.* $ 44
5,100 PerkinElmer, Inc. 339
2,400 Power Integrations, Inc.* 60
800 Rogers Corp.* 50
2,700 Sawtek, Inc.* 142
7,800 Sensormatic Electronics Corp.* 175
2,000 Sipex Corp.* 71
1,300 Stoneridge, Inc.* 15
1,300 Technitrol, Inc. 76
4,900 Tektronix, Inc. 274
2,000 Thermedics, Inc.* 16
400 Thermo Optek Corp.* 6
700 Thermoquest Corp.* 12
2,400 Trimble Navigation Ltd.* 62
3,500 Varian, Inc.* 134
1,100 Veeco Instruments, Inc.* 81
1,900 Watts Industries, Inc., Class A 23
900 Woodward Governor Co. 21
----------
6,023
----------
ENGINEERING & CONSTRUCTION - 0.5%
4,250 Dycom Industries, Inc.* 207
900 Emcor Group, Inc.* 19
4,500 Foster Wheeler Corp. 30
2,075 Granite Construction, Inc. 56
2,200 Insituform Technologies, Inc., Class A* 67
2,400 Jacobs Engineering Group, Inc.* 77
3,500 Morrison Knudsen Corp.* 26
500 Pitt-Des Moines, Inc. 11
1,000 Stone & Webster, Inc. 14
1,400 URS Corp.* 18
----------
525
----------
ENTERTAINMENT - 0.9%
2,000 AMC Entertainment, Inc.* 10
800 Anchor Gaming* 30
2,100 Argosy Gaming Co.* 30
3,300 Ascent Entertainment Group, Inc.* 50
4,400 Aztar Corp.* 42
4,000 Boyd Gaming Corp.* 20
1,055 Carmike Cinemas, Inc., Class A* 6
1,100 Championship Auto Racing Teams, Inc.* 24
1,000 Churchill Downs, Inc. 26
1,500 Dover Downs Entertainment Inc. 19
4,900 Fairfield Communities, Inc.* 39
2,000 Gaylord Entertainment Co. 54
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
600 GC Cos. Inc.* $ 21
4,200 GTECH Holdings Corp.* 78
729 International Speedway Corp., Class A 33
1,500 Loews Cineplex Entertainment Corp.* 5
3,000 Macrovision Corp.* 258
2,600 Pinnacle Entertainment, Inc.* 53
1,100 Scientific Games Holdings Corp.* 18
2,600 Station Casinos, Inc.* 57
1,000 Steinway Musical Instruments, Inc.* 19
4,000 Sunterra Corp.* 8
400 Trendwest Resorts, Inc.* 9
2,500 Vail Resorts, Inc.* 40
1,200 Zomax, Inc.* 72
----------
1,021
----------
ENVIRONMENTAL CONTROL - 0.4%
3,800 Calgon Carbon Corp. 25
1,100 Casella Waste Systems, Inc., Class A* 8
6,400 Catalytica, Inc.* 93
1,600 IMCO Recycling, Inc. 18
1,800 Ionics, Inc.* 46
2,500 IT Group, Inc.* 19
300 Mine Safety Appliances Co. 21
1,500 Stericycle, Inc.* 37
3,000 Syntroleum Corp.* 70
3,793 Tetra Tech, Inc.* 90
250 Thermo Ecotek Corp.* 2
1,500 U.S. Liquids, Inc.* 10
1,700 Waste Connections, Inc.* 21
300 Waste Industries, Inc.* 3
----------
463
----------
FOOD - 1.2%
2,000 American Italian Pasta Co., Class A* 49
1,900 Aurora Foods, Inc.* 6
4,600 Chiquita Brands International, Inc. 22
4,100 Corn Products International, Inc. 99
5,800 Del Monte Foods Co.* 62
1,500 Dreyer's Grand Ice Cream, Inc. 39
4,700 Earthgrains Co. 70
4,300 Fleming Co., Inc. 65
3,300 Grand Union Co* 10
1,900 Great Atlantic & Pacific Tea Co. 37
2,000 Hain Food Group, Inc.* 57
3,500 Imperial Sugar Co. 6
1,100 Ingles Markets, Inc., Class A 11
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
2,700 International Home Foods, Inc.* $ 43
1,900 International Multifoods Corp. 25
700 J & J Snack Foods Corp.* 14
2,700 Lance, Inc. 29
1,600 Michael Foods, Inc. 34
1,350 Performance Food Group Co.* 30
1,800 Pilgrims Pride Corp., Class B 11
3,200 Ralcorp Holdings, Inc.* 46
800 Riviana Foods, Inc. 13
3,400 Ruddick Corp. 37
700 Sanderson Farms, Inc. 6
5,000 Smithfield Foods, Inc.* 100
2,900 Smucker (J.M.) Co., Class A 53
3,500 Suiza Foods Corp.* 141
72 Supervalu, Inc. 1
1,000 United Natural Foods, Inc.* 15
5,200 Universal Foods Corp. 111
3,200 Vlasic Foods International, Inc.* 8
2,900 Whole Foods Market, Inc.* 120
1,850 Wild Oats Markets, Inc.* 38
1,500 Zapata Corp.* 7
----------
1,415
----------
FOOD SERVICE - 0.0%
1,300 Morrison Management Specialists, Inc. 36
----------
FOREST PRODUCTS & PAPER - 0.4%
2,800 Buckeye Technologies, Inc.* 49
2,800 Caraustar Industries, Inc. 40
2,400 Chesapeake Corp. 71
1,400 Deltic Timber Corp. 33
2,800 Glatfelter (P.H.) Co. 30
2,900 Potlatch Corp. 125
1,340 Rock-Tenn Co., Class A 13
1,600 Schweitzer-Mauduit International, Inc. 21
5,742 Wausau-Mosinee Paper Corp. 74
----------
456
----------
GAS - 1.3%
6,300 AGL Resources, Inc. 116
3,422 Atmos Energy Corp. 56
1,200 Cascade Natural Gas Corp. 19
1,000 CTG Resources, Inc. 37
2,949 Eastern Enterprises, Inc. 177
3,000 Energen Corp. 48
3,333 Indiana Energy, Inc. 65
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
SMALL CAP INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
COMMON STOCKS - 96.3% (CONT'D.)
GAS - 1.3% (CONT'D.)
2,100 Laclede Gas Co. $ 42
2,000 New Jersey Resources, Inc. 85
2,750 Northwest Natural Gas Co. 54
1,400 NUI Corp. 36
3,500 Oneok, Inc. 87
3,400 Piedmont Natural Gas Co. 89
1,975 Semco Energy, Inc. 23
913 South Jersey Industries, Inc. 26
3,994 Southern Union Co.* 72
3,400 Southwest Gas Corp. 65
2,800 Southwestern Energy Co. 19
3,486 UGI Corp. 75
5,200 Washington Gas Light Co. 141
4,204 Wicor, Inc. 130
----------
1,462
----------
HAND/MACHINE TOOLS - 0.4%
3,553 Baldor Electric, Inc. 64
500 Franklin Electric Co., Inc. 32
3,100 Kennametal, Inc. 93
4,200 Lincoln Electric Holdings, Inc. 102
4,100 Milacron, Inc. 59
2,300 Regal-Beloit Corp. 40
700 Starrett (L.S.) Co., Class A 16
----------
406
----------
HEALTH CARE - 2.7%
2,300 Acuson Corp.* 34
1,400 Alaris Medical, Inc.* 3
2,400 Alterra Healthcare Corp.* 10
1,900 American Retirement Corp.* 16
5,800 Apria Healthcare Group, Inc.* 84
1,300 Arrow International, Inc. 41
10,400 Beverly Enterprises, Inc.* 38
1,100 Britesmile, Inc.* 11
1,200 Capital Senior Living Corp.* 4
1,100 Carematrix Corp.* 1
700 Closure Medical Corp.* 18
2,500 Columbia Laboratories, Inc.* 29
1,650 Conmed Corp.* 41
1,500 Cooper Companies, Inc. 48
6,500 Covance, Inc.* 70
6,600 Coventry Health Care, Inc.* 56
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
2,000 Cyberonics, Inc.* $ 37
4,000 Cytyc Corp.* 193
1,300 Datascope Corp. 41
1,200 Diagnostic Products Corp. 29
2,100 Eclipse Surgical Tech, Inc.* 16
1,975 Gentiva Health Services, Inc.* 14
1,100 Gliatech, Inc.* 19
2,900 Haemonetics Corp. * 65
2,100 Hanger Orthopedic Group, Inc.* 11
2,700 Henry Schein, Inc.* 44
4,100 Idexx Laboratories, Inc.* 96
1,100 Igen International, Inc.* 28
900 Impath, Inc.* 33
2,612 Invacare Corp. 72
7,200 Laboratory Corp. of America Holdings* 31
2,800 Laser Vision Centers, Inc.* 19
2,000 Lasersight, Inc.* 13
3,200 LCA-Vision, Inc.* 16
3,400 Lifepoint Hospitals, Inc.* 57
3,500 Magellan Health Services, Inc.* 17
4,100 Matria Healthcare, Inc.* 22
2,300 Mentor Corp. 62
5,000 Mid Atlantic Medical Services, Inc.* 46
1,600 Novoste Corp.* 64
3,200 Oakley, Inc.* 34
1,700 Ocular Sciences, Inc.* 27
1,600 Osteotech, Inc.* 21
1,300 Province Healthcare Co.* 37
7,850 PSS World Medical, Inc.* 53
4,500 Quest Diagnostics, Inc.* 179
7,800 Quorum Health Group, Inc.* 78
4,925 Renal Care Group, Inc.* 107
2,150 Res-Care, Inc.* 20
1,600 Resmed, Inc.* 114
3,661 Respironics, Inc.* 53
2,950 Sierra Health Services, Inc.* 15
2,800 Sola International, Inc.* 17
7,500 Steris Corp.* 77
5,200 Summit Technology, Inc.* 47
2,100 Sunrise Assisted Living, Inc.* 28
2,500 Sunrise Medical, Inc.* 16
5,100 Sunrise Technologies International, Inc.* 36
2,200 Techne Corp.* 152
200 Thermo Bioanalysis Corp.* 6
1,700 Thermo Cardiosystems, Inc.* 24
8,300 Total Renal Care Holdings, Inc.* 26
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
1,000 Trex Medical Corp.* $ 3
3,800 Triad Hospitals, Inc.* 64
3,400 Varian Medical Systems, Inc.* 155
1,500 Ventana Medical Systems, Inc.* 65
700 Vital Signs, Inc. 16
1,900 Wesley Jessen VisionCare, Inc.* 68
1,376 West Pharmaceutical Services, Inc. 35
----------
3,122
----------
HOLDING COMPANIES-DIVERSIFIED - 0.1%
1,801 Triarc Co.* 36
4,700 Walter Industries, Inc. 36
----------
72
----------
HOME BUILDERS - 0.8%
4,508 Champion Enterprises, Inc.* 26
1,800 Coachmen Industries, Inc. 25
800 Crossmann Communities, Inc.* 13
5,585 D.R. Horton, Inc. 73
3,700 Fleetwood Enterprises, Inc. 55
5,300 Kaufman & Broad Home Corp. 114
5,200 Lennar Corp. 113
2,500 MDC Holdings, Inc. 45
1,900 Monaco Coach Corp.* 36
950 National R.V. Holdings, Inc.* 15
1,100 NVR, Inc.* 59
5,200 Oakwood Homes, Inc. 20
2,012 Palm Harbor Homes, Inc.* 31
3,600 Pulte Corp. 75
1,600 Ryland Group, Inc. 30
1,000 Skyline Corp. 22
2,800 Standard Pacific Corp. 28
799 Thor Industries, Inc. 19
2,300 Toll Brothers, Inc.* 46
1,351 US Home Corp.* 51
1,700 Webb (Del E.) Corp.* 25
1,600 Winnebago Industries, Inc. 29
----------
950
----------
HOME FURNISHINGS - 0.8%
500 American Woodmark Corp. 10
1,312 Bassett Furniture Industries, Inc. 18
1,050 Bush Industries, Inc., Class A 15
4,500 Ethan Allen Interiors, Inc. 113
3,300 Fedders Corp. 18
5,200 Furniture Brands International, Inc.* 98
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
1,815 Harman International, Inc. $ 109
3,500 Kimball International, Inc., Class B 38
5,800 La-Z-Boy, Inc. 89
800 Parkervision, Inc.* 24
2,400 Polycom, Inc.* 190
1,000 Salton, Inc.* 43
2,000 Select Comfort Corp.* 11
10,238 Sunbeam Corp.* 43
2,553 Windmere-Durable Holdings Corp.* 38
----------
857
----------
HOUSEHOLD PRODUCTS/WARES - 0.6%
2,200 Central Garden & Pet Co* 22
4,300 Church & Dwight Co., Inc. 74
700 CSS Industries, Inc.* 13
1,600 Fossil, Inc.* 38
3,400 Harland (John H.) Co. 46
3,700 Jostens, Inc. 90
1,400 New England Business Service, Inc. 24
8,600 Pennzoil-Quaker State Co. 90
3,200 Playtex Products, Inc.* 42
1,100 Russ Berrie & Co., Inc. 20
2,000 Scotts Company (The), Inc., Class A* 84
1,400 Standard Register Co. 18
6,400 Tupperware Corp. 101
4,300 Wallace Computer Services, Inc. 51
----------
713
----------
HOUSEWARES - 0.2%
1,500 Enesco Group, Inc. 11
1,800 Libbey, Inc. 49
5,771 Metromedia International Group, Inc.* 32
800 Mikasa, Inc. 6
800 National Presto Industries, Inc. 26
1,570 Oneida Ltd. 30
1,300 Toro Co. 39
----------
193
----------
INSURANCE - 2.4%
1,300 Acceptance Insurance Co., Inc.* 7
4,400 Alfa Corp. 78
510 Alleghany Corp.* 96
860 American Annuity Group, Inc. 13
1,620 Amerus Life Holdings, Inc., Class A 29
1,900 Argonaut Group, Inc. 38
1,500 Baldwin & Lyons, Inc., Class B 29
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
SMALL CAP INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
COMMON STOCKS - 96.3% (CONT'D.)
INSURANCE - 2.4% (CONT'D.)
1,850 Berkley (WR) Corp. $ 43
1,150 Brown & Brown, Inc. 44
1,800 CNA Surety Corp. 25
2,800 Commerce Group, Inc. 83
1,719 Delphi Financial Group, Inc., Class A* 52
1,500 E. W. Blanch Holdings, Inc. 30
3,000 Enhance Financial Services Group, Inc. 42
600 Farm Family Holdings, Inc.* 18
1,500 FBL Financial Group, Inc., Class A 23
7,521 Fidelity National Financial, Inc. 104
6,194 First American Financial Corp. 88
1,100 FPIC Insurance Group, Inc.* 19
3,325 Frontier Insurance Group, Inc. 3
4,100 Gallagher (Arthur J.) & Co. 133
1,500 Harleysville Group, Inc. 22
4,400 HCC Insurance Holdings, Inc. 58
1,100 Healthaxis, Inc.* 16
1,500 Hilb, Rogal & Hamilton Co. 41
4,500 Horace Mann Educators, Inc. 83
3,200 HSB Group, Inc. 93
800 Kansas City Life Insurance Co. 19
1,600 Landamerica Financial Group 31
4,400 Leucadia National Corp. 104
1,800 Liberty Corp. 68
1,500 Liberty Financial Co. 30
500 Markel Corp.* 73
2,646 Medical Assurance, Inc.* 50
500 Midland Co. 12
2,000 MMI Co., Inc. 20
5,200 Mony Group, Inc. 168
200 National Western Life Insurance Co., Class A* 16
6,700 Ohio Casualty Corp. 120
700 Penn Treaty American Corp.* 12
900 Philadelphia Consolidated Holdings Co.* 13
1,100 Pico Holdings, Inc.* 12
1,900 PMA Capital Corp., Class A 33
2,600 Presidential Life Corp. 36
1,020 Professionals Group, Inc.* 20
3,986 Radian Group, Inc. 190
7,100 Reliance Group Holdings, Inc. 25
1,000 Risk Capital Holdings, Inc.* 16
863 RLI Corp. 29
1,300 SCPIE Holdings, Inc. 40
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
3,000 Selective Insurance Group, Inc. $ 51
1,600 Stancorp Financial Group, Inc. 44
1,500 State Auto Financial Corp. 12
1,300 Stewart Info Services, Inc. 21
2,200 Superior National Insurance Group, Inc.* --
1,150 Trenwick Group, Inc. 16
1,500 Triad Guaranty, Inc.* 30
4,200 UICI* 28
762 United Fire & Casualty Co. 15
1,100 Zenith National Insurance Corp. 24
----------
2,688
----------
INVESTMENT COMPANIES - 0.1%
6,900 Allied Capital Corp. 120
1,200 Medallion Financial Corp. 20
----------
140
----------
IRON/STEEL - 0.4%
14,500 Bethlehem Steel Corp.* 87
2,000 Carpenter Technology, Inc. 42
1,200 Cleveland-Cliffs, Inc. 29
800 Gibraltar Steel Corp. 13
2,500 Lone Star Technologies, Inc.* 117
11,100 LTV Corp. 40
2,200 National Steel Corp., Class B 16
2,900 Oregon Steel Mills, Inc. 11
2,050 Reliance Steel & Aluminum Co. 46
1,000 Rouge Industries, Inc., Class A 6
1,532 Ryerson Tull, Inc. 24
4,700 Steel Dynamics, Inc.* 54
----------
485
----------
LEISURE TIME - 0.4%
1,000 American Classic Voyages Co.* 25
9,300 AMF Bowling, Inc.* 20
2,025 Arctic Cat, Inc. 21
2,600 Bally Total Fitness Holdings, Inc.* 64
8,400 Callaway Golf Co. 130
1,000 Direct Focus, Inc.* 28
2,350 Family Golf Centers, Inc.* 2
2,100 Pegasus Systems, Inc.* 33
2,700 Polaris Industries, Inc. 81
2,500 WMS Industries, Inc.* 25
----------
429
----------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
LODGING - 0.3%
3,500 Boca Resorts, Inc., Class A* $ 30
6,100 Choice Hotels International, Inc.* 88
2,000 Crestline Capital Corp.* 35
7,900 Extended Stay America, Inc.* 59
2,700 Lodgian, Inc.* 10
2,525 Marcus Corp. 33
5,400 Prime Hospitality Corp.* 39
1,500 U.S. Franchise Systems, Inc., Class A* 7
15,000 Wyndham International, Inc., Class A* 28
----------
329
----------
MACHINERY-CONSTRUCTION & MINING - 0.2%
1,600 Astec Industries, Inc.* 43
2,100 CMI Corp., Class A 10
1,450 Commercial Intertech Corp. 29
4,900 JLG Industries, Inc. 45
2,850 Manitowoc Co., Inc. 77
2,700 Terex Corp.* 39
----------
243
----------
MACHINERY-DIVERSIFIED - 2.0%
1,100 Advanced Energy Industries, Inc.* 56
6,600 Agco Corp. 75
2,067 Albany International Corp., Class A* 31
2,335 Applied Industrial Technology, Inc. 37
3,300 Asyst Technologies, Inc.* 193
1,200 Brooks Automation, Inc.* 75
1,775 Chart Industries, Inc. 6
3,800 Cognex Corp.* 219
1,400 Columbus Mckinnon Corp. 18
900 Detroit Diesel Corp. 17
1,900 Esterline Technologies Corp.* 25
4,089 Flowserve Corp. 53
2,700 FSI International, Inc.* 55
1,450 Gardner Denver, Inc.* 27
2,200 Gerber Scientific, Inc. 42
1,655 Graco, Inc. 48
2,500 Helix Technology Corp. 150
3,275 Idex Corp. 89
4,000 Imation Corp.* 107
2,600 Kulicke & Soffa Industries, Inc.* 167
1,355 Lindsay Manufacturing Co. 23
2,700 Magnetek, Inc.* 25
700 Nacco Industries, Inc., Class A 34
1,600 Nordson Corp. 74
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
3,000 Presstek, Inc.* $ 71
2,200 PRI Automation, Inc.* 134
900 Robbins & Myers, Inc. 21
1,300 Sauer, Inc. 13
1,400 Specialty Equipment Co.* 29
2,785 SpeedFam-IPEC, Inc.* 55
3,100 Stewart & Stevenson Services, Inc. 35
1,000 Tennant Co. 31
700 Thermo Fibertek, Inc.* 5
1,723 Thomas Industries, Inc. 32
4,700 Unova, Inc.* 63
2,700 Zebra Technologies Corp., Class A* 135
----------
2,270
----------
MEDIA - 1.7%
1,300 Ackerley Group, Inc. 20
4,000 Actv, Inc.* 140
2,500 Citadel Communications Corp.* 105
2,000 Cumulus Media, Inc., Class A* 29
5,100 Emmis Communications, Inc., Class A* 237
2,600 Entercom Communications Corp.* 133
1,400 Gray Communications System, Inc. 17
400 IDG Books Worldwide, Inc., Class A* 5
500 Information Holdings, Inc.* 16
5,200 Journal Register Co.* 77
4,900 Lee Enterprises, Inc. 128
1,100 On Command Corp.* 17
3,300 Paxson Communications Corp.* 26
1,200 Pegasus Communications Corp.* 169
2,200 Playboy Enterprises, Inc., Class B* 44
800 Pulitzer, Inc. 33
900 Radio One, Inc.* 60
825 Saga Communications, Inc., Class A* 16
1,500 Scholastic Corp.* 81
2,800 Sinclair Broadcast Group, Inc., Class A* 25
1,800 Sirius Satellite Radio, Inc.* 103
1,500 Source Media, Inc.* 21
400 United Television, Inc. 53
200 Value Line, Inc. 7
7,600 Westwood One, Inc.* 275
1,300 Worldpages.com, Inc.* 12
1,000 Young Broadcasting, Inc., Class A* 19
1,400 Youthstream Media Networks, Inc.* 18
3,000 Ziff Davis, Inc.* 47
----------
1,933
----------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
SMALL CAP INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
COMMON STOCKS - 96.3% (CONT'D.)
METAL FABRICATE/HARDWARE - 0.7%
700 Alltrista Corp.* $ 16
1,262 Castle (A.M.) & Co. 16
1,410 Commercial Metals Co. 39
2,500 Intermet Corp. 23
3,400 Kaydon Corp. 93
700 Lawson Products, Inc. 17
2,000 Maverick Tube Corp.* 65
3,300 Metals USA, Inc. 22
3,900 Mueller Industries, Inc.* 118
2,700 Precision Castparts Corp.* 99
1,600 Quanex Corp. 29
5,600 Timken Co 91
1,900 Valmont Industries, Inc. 33
1,400 Wolverine Tube, Inc.* 18
8,200 Worthington Industries, Inc. 101
----------
780
----------
METALS-DIVERSIFIED - 0.3%
1,800 Brush Wellman, Inc. 32
3,200 Kaiser Aluminum Corp.* 14
500 Maxxam, Inc.* 14
1,700 RTI International Metals, Inc.* 15
2,800 Southern Peru Copper Corp. 36
4,150 Stillwater Mining Co.* 166
2,000 Titanium Metals Corp. 9
10,000 Usec, Inc. 46
----------
332
----------
MINING - 0.1%
3,014 AMCOL International Corp. 46
14,500 Battle Mountain Gold Co. 28
----------
74
----------
MISCELLANEOUS MANUFACTURERS - 1.6%
2,100 ABC-NACO, Inc.* 18
3,500 Aptargroup, Inc. 93
1,932 Barnes Group, Inc. 28
3,460 Blount International, Inc.* 45
2,612 Clarcor, Inc. 46
1,850 Cuno, Inc.* 50
2,600 Dexter Corp. 138
4,500 Donaldson Co., Inc. 102
5,100 Federal Signal Corp. 92
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
1,700 Gentek, Inc. $ 24
3,403 Griffon Corp.* 27
4,400 Harsco Corp. 127
1,607 Hexcel Corp.* 8
1,826 Justin Industries, Inc. 33
1,700 Lydall, Inc.* 15
5,200 Mark IV Industries, Inc. 115
4,100 Mascotech, Inc. 48
1,600 Matthews International Corp., Class A 36
1,736 Myers Industries, Inc. 21
300 NCH Corp. 14
5,312 Pittston Brink's Group, Inc. 90
4,900 Polaroid Corp. 116
2,300 Polymer Group, Inc. 29
3,300 Roper Industries, Inc. 112
1,600 Scott Technologies, Inc.* 30
2,300 Smith (A.O.) Corp. 41
1,434 SPS Technologies, Inc.* 44
1,300 Standex International Corp. 20
2,200 Sturm Ruger & Co, Inc. 19
2,250 Tredegar Corp. 61
4,400 Trinity Industries, Inc. 104
4,674 Westinghouse Air Brake Co. 50
----------
1,796
----------
OFFICE/BUSINESS EQUIPMENT - 0.0%
700 General Binding Corp. 7
700 Global Imaging Systems, Inc.* 5
----------
12
----------
OFFICE FURNISHINGS - 0.0%
200 Compx International, Inc. 4
4,600 Interface, Inc. 20
601 Virco Manufacturing Corp. 6
----------
30
----------
OIL & GAS PRODUCERS - 2.2%
1,200 Atwood Oceanics, Inc.* 80
3,153 Barrett Resources Corp.* 94
1,600 Basin Exploration, Inc.* 24
1,000 Belco Oil & Gas Corp.* 10
2,000 Berry Petroleum Co., Class A 34
2,500 Cabot Oil & Gas Corp., Class A 45
8,518 Chesapeake Energy Corp.* 28
5,375 Cross Timbers Oil Co. 70
4,700 EEX Corp.* 16
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
1,400 Evergreen Resources, Inc.* $ 34
3,600 Forest Oil Corp.* 38
18,300 Grey Wolf, Inc.* 72
14,900 Harken Energy Corp.* 15
5,500 Helmerich & Payne, Inc. 171
900 Houston Exploration Co.* 16
1,900 HS Resources, Inc.* 40
9,200 Key Energy Services, Inc.* 107
2,152 Louis Dreyfus Natural Gas, Inc.* 73
6,300 Marine Drillings Co., Inc.* 173
1,400 McMoran Exploration Co.* 27
2,912 Meridian Resource Corp.* 11
2,300 Mitchell Energy & Development Co., Class A 50
4,100 Newfield Exploration Co.* 145
1,800 Nuevo Energy Co.* 39
7,200 Parker Drilling Co.* 36
3,600 Patterson Energy, Inc.* 114
11,100 Pioneer Natural Resources Co.* 118
1,800 Plains Resources, Inc.* 22
4,500 Pogo Producing Co. 129
6,700 Pride International, Inc.* 153
1,200 St. Mary Land & Exploration Co. 36
1,800 Stone Energy Corp.* 89
2,190 Swift Energy Co.* 39
3,600 Tesoro Petroleum Corp.* 41
3,600 Tom Brown, Inc.* 66
5,500 Valero Energy Corp. 168
4,900 Vintage Petroleum, Inc. 99
1,470 WD-40 Co. 31
----------
2,553
----------
OIL & GAS SERVICES - 1.0%
600 Cal Dive International, Inc.* 30
500 Carbo Ceramics, Inc. 14
1,000 Dril-Quip, Inc.* 47
3,179 Friede Goldman Halter, Inc.* 22
6,800 Global Industries Ltd.* 99
3,200 Hanover Compressor Co.* 182
5,000 Input/Output, Inc.* 31
1,800 IRI International Corp.* 17
5,400 National-Oilwell, Inc.* 167
7,680 Newpark Resources, Inc.* 61
2,300 Oceaneering International, Inc.* 43
1,494 RPC, Inc. 14
1,300 Seacor Smit, Inc.* 78
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
2,700 Seitel, Inc.* $ 21
3,200 Tuboscope, Inc.* 54
1,500 UTI Energy Corp.* 57
6,800 Varco International, Inc.* 86
2,800 Veritas DGC, Inc.* 79
----------
1,102
----------
PACKAGING & CONTAINERS - 0.2%
1,500 ACX Technologies, Inc.* 6
400 AEP Industries, Inc.* 13
2,900 Earthshell Corp.* 12
5,900 Gaylord Container Corp., Class A* 38
1,500 Greif Bros. Corp., Class A* 48
2,300 Ivex Packaging Corp.* 17
300 Liqui-Box Corp. 14
5,700 Longview Fibre Co. 84
1,200 Silgan Holdings, Inc.* 15
1,000 U.S. Can Corp.* 19
----------
266
----------
PHARMACEUTICALS - 3.6%
1,000 Abgenix, Inc.* 138
500 Accredo Health, Inc.* 17
2,100 Advance Paradigm, Inc.* 25
1,300 Algos Pharmaceuticals Corp.* 19
2,700 Alkermes, Inc.* 250
2,150 Alpharma, Inc., Class A 79
5,400 Amerisource Health Corp., Class A* 81
1,300 Anesta Corp.* 17
1,425 Barr Laboratories, Inc.* 60
2,954 Bindley Western Industries, Inc. 40
1,600 Biomatrix, Inc.* 41
1,687 Block Drug Co., Class A 46
2,400 Carter-Wallace, Inc. 45
1,900 Celgene Corp.* 189
2,200 Cell Pathways, Inc.* 76
3,400 Cephalon, Inc.* 128
1,500 Chirex, Inc.* 29
2,500 Cor Therapeutics, Inc.* 165
1,700 Corixa Corp.* 70
1,900 Coulter Pharmaceutical, Inc.* 58
2,400 Cygnus, Inc.* 35
4,900 Dura Pharmaceuticals, Inc.* 60
2,400 Duramed Pharmaceuticals, Inc.* 16
1,500 Geltex Pharmaceuticals, Inc.* 25
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
SMALL CAP INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
COMMON STOCKS - 96.3% (CONT'D.)
PHARMACEUTICALS - 3.6% (CONT'D.)
4,893 Gilead Sciences, Inc.* $ 310
2,600 Guilford Pharmaceuticals, Inc.* 60
2,700 Hemispherx Biopharma, Inc.* 29
1,433 Herbalife International, Inc., Class A 20
3,100 Imclone Systems, Inc.* 238
3,400 Isis Pharmaceuticals, Inc.* 48
6,075 Jones Pharma, Inc. 185
1,300 KV Pharmaceutical Co., Class B* 38
3,078 King Pharmaceuticals, Inc.* 97
4,951 Ligand Pharmaceuticals, Inc., Class B* 88
2,300 Macrochem Corp.* 16
700 Mannatech, Inc.* 3
3,150 Medicis Pharmaceutical, Class A* 126
1,566 Natures Sunshine Products, Inc. 13
6,100 NBTY, Inc.* 83
1,600 NCS Healthcare, Inc., Class A* 3
1,300 Neurogen Corp.* 40
1,800 Pathogenesis Corp.* 41
2,675 Patterson Dental Co.* 102
6,800 Perrigo Co.* 52
1,900 Pharmaceutical Resources, Inc.* 12
1,700 Pharmacyclics, Inc.* 95
500 Priority Healthcare Corp., Class B* 25
3,800 Rexall Sundown, Inc.* 54
1,700 Sangstat Medical Corp.* 47
600 Schein Pharmaceutical, Inc.* 10
9,800 Sicor, Inc.* 102
2,100 Supergen, Inc.* 101
1,100 Syncor International Corp. * 36
2,900 Theragenics Corp.* 39
3,600 Triangle Pharmaceuticals, Inc.* 57
2,500 Twinlab Corp.* 18
2,800 Vertex Pharmaceuticals, Inc.* 131
2,400 Veterinary Centers of America, Inc.* 33
----------
4,061
----------
PIPELINES - 0.2%
3,700 Equitable Resources, Inc. 166
2,900 Transmontaigne, Inc.* 20
1,700 Western Gas Resources, Inc. 27
----------
213
----------
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
REAL ESTATE - 0.3%
1,500 Castle & Cooke, Inc.* $ 25
2,300 CB Richard Ellis Services, Inc.* 25
1,800 Forest City Enterprises, Inc., Class A 53
855 Getty Realty Corp. 10
1,966 Insignia Financial Group, Inc.* 28
3,300 Jones Lang LaSalle, Inc.* 51
2,800 LNR Property Corp. 53
4,500 Security Capital Group, Inc., Class B* 65
2,700 Trammell Crow Co.* 30
2,300 Wellsford Real Properties, Inc.* 20
----------
360
----------
REAL ESTATE INVESTMENT TRUSTS - 4.2%
400 Alexander's, Inc.* 25
1,300 Alexandria Real Estate Equities, Inc. 39
2,000 American Industrial Properties, Inc. 24
1,600 Amli Residential Properties Trust 33
1,800 Associated Estates Realty Corp. 15
2,300 Bedford Property Investors, Inc. 37
1,900 Boykin Lodging Co. 22
2,688 Bradley Real Estate, Inc. 46
3,900 Brandywine Realty Trust 67
5,000 BRE Properties, Inc. Class A 129
3,600 Burnham Pacific Property, Inc. 25
4,500 Cabot Industrial Trust 84
4,416 Camden Property Trust 120
2,400 Capital Automotive REIT 29
6,402 Capstead Mortgage Corp. 25
2,500 CBL & Associates Properties, Inc. 51
2,600 Center Trust, Inc. 17
2,300 Centerpoint Properties Corp. 84
2,300 Chateau Communities, Inc. 59
1,800 Chelsea GCA Realty, Inc. 52
2,900 Colonial Properties Trust 69
3,400 Commercial Net Lease Realty, Inc. 35
4,300 Cornerstone Realty Income Trust 46
2,700 Cousins Properties, Inc. 99
2,500 Crown American Realty, Inc. 13
6,600 Developers Diversified Realty Corp. 92
1,800 Eastgroup Properties, Inc. 39
1,700 Entertainment Properties Trust 22
4,100 Equity Inns, Inc. 28
2,000 Essex Property Trust, Inc. 72
4,500 Federal Realty Investors Trust 87
4,200 First Industrial Realty Trust 114
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
900 First Washington Realty Trust $ 17
2,800 Gables Residential Trust 63
3,400 Glenborough Realty Trust, Inc. 49
2,600 Glimcher Realty Trust 35
1,800 Great Lakes REIT, Inc. 27
900 Golf Trust of America, Inc. 15
5,552 Health Care Properties Investment, Inc. 141
3,200 Health Care REIT, Inc. 45
4,473 Healthcare Realty Trust, Inc. 75
2,100 Home Properties of New York, Inc. 56
5,600 Hospitality Properties Trust 113
3,800 Innkeepers USA Trust 31
3,700 IRT Property Co. 30
3,800 JDN Realty Corp. 39
1,400 JP Realty, Inc. 25
3,100 Kilroy Realty Corp. 65
3,000 Koger Equity, Inc. 52
3,400 Konover Property Trust, Inc. 19
1,300 Lasalle Hotel Properties 16
1,900 Lexington Corporate Properties Trust 20
3,000 LTC Properties, Inc. 16
3,300 Macerich (The) Co. 68
2,200 Manufactured Home Communities, Inc. 51
5,246 Meristar Hospitality Corp. 91
1,500 MGI Properties, Inc. 8
2,000 Mid-America Apartment Communities, Inc. 45
1,700 Mills Corp. 31
1,400 National Golf Properties, Inc. 29
5,100 Nationwide Health Properties, Inc. 53
2,700 National Health Investors, Inc. 32
2,240 Omega Healthcare Investors, Inc. 14
2,000 Pacific Gulf Properties, Inc. 39
1,000 Pan Pacific Retail Properties, Inc. 18
1,100 Parkway Properties, Inc. 32
1,300 Pennsylvania Real Estate Investment Trust 21
3,100 Pinnacle Holdings, Inc.* 171
4,200 Prentiss Properties Trust 94
1,000 Prime Group Realty Trust 14
4,757 Prime Retail, Inc. 10
2,600 PS Business Parks, Inc. 53
3,000 Realty Income Corp. 58
4,500 Reckson Associates Realty Corp. 84
800 Redwood Trust, Inc. 12
3,900 Regency Realty Corp. 77
2,800 RFS Hotel Investors, Inc. 30
1,200 Saul Centers, Inc. 19
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
3,200 Shurgard Storage Centers, Inc., Class A $ 84
2,400 Sl Green Realty Corp. 57
2,200 Smith (Charles E.) Residential Realty, Inc. 79
1,400 Sovran Self Storage, Inc. 28
3,100 Storage USA, Inc. 95
2,500 Summit Properties, Inc. 48
1,900 Sun Communities, Inc. 55
600 Tanger Factory Outlet Centers, Inc. 12
3,800 Taubman Centers, Inc. 42
2,400 Thornburg Mortgage Asset Corp. 18
1,700 Town & Country Trust 28
11,400 United Dominion Realty Trust 115
1,100 Urban Shopping Centers, Inc. 32
1,700 US Restaurant Properties, Inc. 22
6,000 Ventas, Inc. 20
4,000 Washington Real Estate Investors 60
3,000 Weingarten Realty Investors 110
1,900 Western Properties Trust 19
3,200 Westfield America, Inc. 43
----------
4,769
----------
RETAIL - 3.7%
15,900 7-Eleven, Inc.* 60
1,333 99 Cents Only Stores, Inc.* 52
3,600 Advantica Restaurant Group, Inc.* 5
3,200 Ames Department Stores, Inc.* 79
2,400 AnnTaylor Stores Corp.* 55
2,700 Applebee's International, Inc. 76
1,893 Avado Brands, Inc. 5
3,200 Barnesandnoble.com, Inc.* 30
300 Bebe Stores, Inc.* 4
2,700 Beyond.com Corp.* 12
4,300 Bob Evans Farms, Inc. 54
1,400 Boise Cascade Office Products, Co.* 23
4,000 Bombay Co. (The), Inc.* 13
8,700 Borders Group, Inc.* 150
2,000 Brown Shoe Co., Inc. 24
4,701 Buffets, Inc.* 42
2,060 Burlington Coat Factory Warehouse Co. 35
5,800 Casey's General Stores, Inc. 63
2,800 Cash America International, Inc. 35
1,700 Cato Corp., Class A 20
6,500 CBRL Group, Inc. 65
1,792 CDnow, Inc.* 7
3,060 CEC Entertainment, Inc.* 83
10,900 Charming Shoppes, Inc.* 62
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
SMALL CAP INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
COMMON STOCKS - 96.3% (CONT'D.)
RETAIL - 3.7% (CONT'D.)
500 Cheap Tickets, Inc.* $ 7
1,900 Cheesecake Factory (The), Inc.* 79
1,500 Chico's FAS, Inc.* 25
1,900 Children's Place* 27
5,700 CKE Restaurants, Inc. 36
300 Coldwater Creek, Inc.* 5
2,604 Consolidated Products, Inc.* 25
4,100 Copart, Inc.* 72
2,275 Cost Plus, Inc.* 77
500 Creative Computers, Inc.* 5
2,100 CSK Auto Corp.* 29
1,600 Cyberian Outpost, Inc.* 14
1,300 Dave & Buster's, Inc.* 12
900 David's Bridal, Inc.* 11
400 DEB Shops, Inc. 6
800 Delia's, Inc.* 4
1,000 Discount Auto Parts, Inc.* 9
1,700 Dress Barn, Inc.* 33
1,900 Duane Reade, Inc.* 44
2,421 Egghead.com, Inc.* 17
600 Electronics Boutique Holdings, Inc.* 11
1,400 Factory 2-U Stores, Inc.* 35
400 Fatbrain.com, Inc.* 4
2,200 Footstar, Inc.* 62
2,500 Genesco, Inc.* 33
2,100 Goody's Family Clothing, Inc.* 13
1,700 Group 1 Automotive, Inc.* 20
2,400 Guitar Center, Inc.* 27
2,400 Gymboree Corp.* 10
13,200 Hanover Direct, Inc.* 31
2,000 Haverty Furniture 21
6,700 Heilig-Meyers Co. 26
3,500 Hollywood Entertainment Corp.* 28
3,700 Homebase, Inc.* 7
2,200 IHOP Corp.* 31
2,300 Insight Enterprises, Inc.* 84
3,100 Intertan, Inc.* 43
4,500 Jack In The Box, Inc.* 96
1,750 Jo-Ann Stores, Inc., Class A* 15
150 Kenneth Cole Productions, Class A* 6
2,800 Landry's Seafood Restaurants, Inc. 18
1,500 Lands' End, Inc.* 92
800 Lithia Motors, Inc., Class A* 12
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
3,700 Lone Star Steakhouse & Saloon, Inc.* $ 38
2,500 Luby's, Inc. 24
2,061 Massimo da Milano, Inc.* -
3,100 Michaels Stores, Inc.* 126
1,000 Movado Group Co. 10
3,000 MSC Industrial Direct Co., Class A* 54
3,400 Musicland Stores Corp.* 22
1,100 NPC International, Inc.* 8
1,500 O'Charleys, Inc.* 19
12,600 Officemax, Inc.* 82
3,800 O'Reilly Automotive, Inc.* 54
700 P.F. Changs China Bistro, Inc.* 23
3,037 Pacific Sunwear of California, Inc.* 117
2,525 Papa John's International, Inc.* 83
400 PC Connection, Inc.* 11
5,100 Pep Boys-Manny Moe & Jack 30
2,300 PETCO Animal Supplies, Inc.* 27
12,400 PETsMART, Inc.* 37
10,700 Pier 1 Imports, Inc. 110
1,200 Rare Hospitality International, Inc.* 23
3,325 Regis Corp. 49
1,500 Restoration Hardware, Inc.* 8
3,400 Ruby Tuesday, Inc. 59
4,000 Ryan's Family Steak Houses, Inc.* 38
1,900 School Specialty, Inc.* 41
900 Shoe Carnival, Inc.* 8
2,900 Shop At Home, Inc.* 25
3,400 Shopko Stores, Inc.* 60
850 Smart & Final, Inc. 6
2,075 Sonic Corp.* 57
1,800 Spiegel, Inc., Class A* 14
3,100 Stein Mart, Inc.* 26
4,500 Sunglass Hut International, Inc.* 35
4,000 Systemax, Inc.* 36
1,300 Talbots, Inc. 77
900 The Buckle, Inc.* 15
1,900 The Finish Line, Inc., Class A* 19
2,802 The Men's Wearhouse, Inc.* 83
700 Tractor Supply Co.* 14
3,550 Trans World Entertainment Corp.* 35
900 Tuesday Morning Corp.* 13
1,200 Tweeter Home Entertainment Group, Inc.* 53
4,100 US Office Products Co.* 10
300 Ubid, Inc.* 9
2,400 United Auto Group, Inc.* 21
1,500 United Retail Group, Inc.* 14
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
1,100 Urban Outfitters, Inc.* $ 16
1,100 Value America, Inc.* 4
1,600 Value City Department Stores, Inc.* 22
900 West Marine, Inc.* 9
1,200 Wet Seal, Inc., Class A* 19
1,800 Whitehall Jewellers, Inc.* 42
----------
4,151
----------
SAVINGS & LOANS - 1.3%
1,100 Alliance Bancorp 20
2,800 Anchor Bancorp Wisconsin, Inc. 44
700 Andover Bancorp, Inc. 20
3,600 Bank United Corp., Class A 114
4,700 BankAtlantic Bancorp, Inc., Class B 28
1,500 Brookline Bancorp, Inc. 14
10,100 Capitol Federal Financial 95
2,200 CFS Bancorp, Inc. 20
1,300 Commonwealth Bancorp, Inc. 16
1,400 Dime Community Bancshares 22
2,241 Downey Financial Corp. 48
1,700 First Federal Capital Corp. 20
1,500 First Financial Holdings, Inc. 21
1,030 First Indiana Corp. 19
4,448 First Sentinel Bancorp, Inc. 34
1,230 First Washington Bancorp, Inc. 22
2,050 First Federal Financial Corp.* 27
800 Flagstar Bancorp, Inc. 10
700 Great Southern Bancorp, Inc. 13
1,412 Harbor Florida Bancshares, Inc. 16
1,000 Harris Financial, Inc. 7
1,800 Hudson River Bancorp, Inc. 18
7,400 Independence Community Bank 82
7,900 Indymac Mortgage Holdings, Inc. 118
2,661 MAF Bancorp, Inc. 43
2,600 Net.B@nk, Inc.* 34
1,400 Niagara Bancorp, Inc. 14
1,600 Northwest Bancorp, Inc. 11
1,500 OceanFirst Financial Corp. 24
4,200 Ocwen Financial Corp.* 33
1,500 PFF Bancorp, Inc. 23
1,837 Queens County Bancorp, Inc. 33
3,400 Richmond County Financial Corp. 55
2,900 Seacoast Financial Services Corp. 29
900 St. Francis Capital Corp. 13
4,400 Staten Island Bancorp, Inc. 75
3,900 United Community Financial Corp. 27
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
6,100 Washington Federal, Inc. $ 116
4,200 Webster Financial Corp. 97
981 Westcorp 14
----------
1,489
----------
SEMICONDUCTORS - 5.8%
2,300 Actel Corp.* 82
2,700 Alliance Semiconductor Corp.* 58
1,800 Alpha Industries, Inc.* 171
1,800 American Xtal Technology, Inc.* 58
10,000 Amkor Technology, Inc.* 531
3,115 Applied Materials, Inc.* 294
2,300 Atmi, Inc.* 110
4,237 Burr-Brown Corp.* 230
7,300 Cirrus Logic, Inc.* 133
2,800 Cree, Inc.* 316
11,600 Cypress Semiconductor Corp.* 572
6,500 Dallas Semiconductor Corp. 228
500 Dupont Photomasks, Inc.* 29
2,200 Electroglas, Inc.* 75
1,100 Emcore Corp.* 127
2,900 ESS Technology, Inc.* 51
1,900 Exar Corp.* 136
3,400 General Semiconductor, Inc.* 59
800 HI/FN, Inc.* 52
5,500 International Rectifier Corp.* 210
3,300 Kopin Corp.* 227
13,100 Lam Research Corp.* 590
5,000 Lattice Semiconductor Corp.* 338
4,700 LTX Corp.* 212
3,700 MEMC Electronic Materials, Inc.* 74
1,300 MIPS Technologies, Inc., Class A* 72
700 MKS Instruments, Inc.* 35
2,600 Phoenix Technologies Ltd.* 55
2,400 Photronics, Inc.* 85
2,587 Pioneer Standard Electronics, Inc. 41
1,400 PLX Technology, Inc.* 52
3,500 Semtech Corp.* 224
3,700 Silicon Valley Group, Inc.* 102
600 Siliconix, Inc.* 57
4,300 Transwitch Corp.* 413
3,300 Triquint Semiconductor, Inc.* 243
2,400 Ultratech Stepper, Inc.* 34
3,400 Varian Semiconductor Equipment, Inc.* 216
----------
6,592
----------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
SMALL CAP INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
COMMON STOCKS - 96.3% (CONT'D.)
SHIPBUILDING - 0.1%
3,400 Newport News Shipbuilding, Inc. $103
----------
SOFTWARE - 11.3%
1,600 24/7 Media, Inc.* 63
2,300 3Dfx Interactive, Inc.* 27
400 About.com, Inc.* 35
4,600 Acclaim Entertainment, Inc.* 15
2,800 Activision, Inc.* 34
2,700 Actuate Corp.* 145
1,000 Advantage Learning Systems, Inc.* 17
2,700 Advent Software, Inc.* 124
1,500 Allaire Corp.* 113
4,700 American Management Systems, Inc.* 206
1,820 Applied Graphics Technologies, Inc.* 11
500 Appliedtheory Corp.* 10
2,800 Ashton Technology Group, Inc.* 24
5,100 Aspect Development, Inc.* 328
2,800 Aspen Technology, Inc.* 113
900 Autobytel.com, Inc.* 7
700 Autoweb.com, Inc.* 5
2,500 Avid Technology, Inc.* 45
2,700 AVT Corp.* 32
2,700 Banyan Systems, Inc.* 47
1,250 Barra, Inc.* 42
3,700 Bindview Development Corp.* 115
800 Bottomline Technologies, Inc.* 29
2,000 Brio Technology, Inc.* 76
18,500 Broadvision, Inc.* 830
800 Cais Internet, Inc.* 19
2,400 CCC Information Services Group, Inc.* 52
2,900 Cerner Corp.* 78
3,300 Choicepoint, Inc.* 123
4,700 Concentric Network Corp.* 258
1,600 Concord Communications, Inc.* 57
1,500 Concur Technologies, Inc.* 23
2,000 Cybercash, Inc.* 27
1,800 Datastream Systems, Inc.* 52
3,400 Dendrite International, Inc.* 71
1,800 Digital River, Inc.* 39
1,600 Documentum, Inc.* 125
700 Earthweb, Inc.* 17
3,900 Eclipsys Corp.* 76
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
1,000 eFax.com* $ 5
7,000 Elot, Inc.* 41
1,300 Engineering Animation, Inc.* 17
4,543 Epicor Software Corp.* 39
1,300 Excalibur Technologies Corp.* 52
2,600 Exchange Applications, Inc.* 138
1,108 Fair Isaac & Co., Inc. 43
700 Fidelity Holdings, Inc.* 15
1,000 Flashnet Communications, Inc.* 5
1,800 Globix Corp.* 69
2,500 Go2Net, Inc.* 201
1,100 Great Plains Software, Inc.* 59
4,000 GT Interactive Software Corp.* 13
4,250 Harbinger Corp.* 124
1,200 HearMe* 30
2,700 HNC Software, Inc.* 195
3,590 Hyperion Solutions Corp.* 117
1,600 IDX Systems Corp.* 44
2,150 IMRglobal Corp.* 31
3,200 Infocure Corp.* 56
1,900 Informatica Corp.* 146
3,100 Information Resources, Inc.* 25
29,800 Informix Corp.* 505
2,450 InfoUSA, Inc.* 22
1,300 Inspire Insurance Solutions, Inc.* 4
2,300 Inter-Tel, Inc. 63
1,000 Intervu, Inc.* 90
1,600 Intraware, Inc.* 66
500 iTurf, Inc., Class A* 5
1,800 iVillage, Inc.* 28
2,300 JDA Software Group, Inc.* 34
700 Juno Online Services, Inc.* 11
1,100 Launch Media, Inc.* 17
5,000 Learn2.com, Inc.* 21
2,300 Manugistics Group, Inc.* 116
1,900 Mapics, Inc.* 30
500 MapQuest.com, Inc.* 10
400 Marketwatch.com, Inc.* 14
400 Media Metrix, Inc.* 17
1,400 Mediconsult.com, Inc.* 4
8,500 Mercury Interactive Corp.* 674
3,200 Messagemedia, Inc.* 41
2,300 Micromuse, Inc.* 319
8,500 Microstrategy, Inc.* 740
3,289 Midway Games, Inc.* 44
1,500 Multex.com, Inc.* 56
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
2,675 National Instruments Corp.* $126
1,300 NBC Internet, Inc., Class A* 56
2,800 Neomagic Corp.* 14
800 Neon Systems, Inc.* 26
1,200 Net Perceptions, Inc.* 44
700 Netobjects, Inc.* 16
900 Netopia, Inc.* 65
1,900 Nvidia Corp.* 161
500 Omega Research, Inc.* 2
2,100 OneMain.com, Inc.* 24
1,700 OnHealth Network Co.* 7
1,500 Onyx Software Corp.* 48
3,700 Open Market, Inc.* 95
300 PCOrder.com, Inc.* 7
3,200 Pegasystems, Inc.* 38
5,700 Peregrine Systems, Inc.* 382
3,099 Per-Se Technologies, Inc.* 18
1,700 Pervasive Software, Inc.* 22
4,400 Pinnacle Systems, Inc.* 146
3,900 Policy Management Systems Corp.* 47
500 Private Business, Inc.* 1
1,600 Probusiness Services, Inc.* 41
3,400 Progress Software Corp.* 80
1,400 Project Software & Development Corp.* 79
2,300 Proxicom, Inc.* 102
2,800 QuadraMed Corp.* 16
4,400 Rare Medium Group, Inc.* 194
1,550 Razorfish, Inc.* 43
2,800 Remedy Corp.* 118
4,160 S1 Corp.* 356
3,200 Saga Systems, Inc.* 114
1,500 Sagent Technology, Inc.* 43
400 Saleslogix Corp.* 11
1,400 Sanchez Computer Associates, Inc.* 49
2,000 Santa Cruz Operation, Inc.* 19
1,000 Schawk, Inc. 8
1,500 Serena Software, Inc.* 48
400 Silknet Software, Inc.* 42
51 Simione Central Holdings, Inc.* -
341 Siti-Sites.com, Inc.* -
2,100 Softnet Systems, Inc.* 61
1,800 Sportsline.com, Inc.* 53
900 SPSS, Inc.* 29
1,900 Spyglass, Inc.* 147
1,200 SS&C Technologies, Inc.* 7
3,924 Structural Dynamics Research Corp.* 53
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
400 Sunquest Information Systems, Inc.* $ 4
2,700 SVI Holdings, Inc.* 27
9,000 Sybase, Inc.* 183
1,400 Telescan, Inc.* 33
500 Tenfold Corp.* 30
1,200 TheGlobe.com, Inc.* 8
600 TheStreet.com, Inc.* 6
2,000 THQ, Inc.* 36
3,600 Transaction Systems
Architecture, Inc., Class A* 104
1,700 TSI International Software Ltd.* 141
600 Unigraphics Solutions, Inc.* 18
2,475 USinternetworking, Inc.* 96
3,400 Verity, Inc.* 139
3,900 Verticalnet, Inc.* 530
2,400 Wavo Corp.* 11
1,500 Webtrends Corp.* 108
5,803 Wind River Systems, Inc.* 210
1,200 Worldgate Communications, Inc.* 36
1,500 Ziff-Davis, Inc. - ZDNet* 32
1,700 Zixit Corp.* 124
----------
12,840
----------
TELECOMMUNICATION
EQUIPMENT - 4.1%
2,200 Adtran, Inc.* 131
8,000 Advanced Fibre Communications, Inc.* 502
2,700 Advanced Radio Telecom Corp.* 89
3,040 Allen Telecom, Inc.* 48
9,100 Andrew Corp.* 208
2,650 Antec Corp.* 119
1,800 Aware, Inc.* 72
1,100 Carrier Access Corp.* 59
2,700 C-COR.Net Corp.* 132
5,500 Cellnet Data Systems, Inc.* 2
1,900 Com21, Inc.* 89
5,300 Commscope, Inc.* 242
7,500 Digital Microwave Corp.* 254
500 eShare Technologies, Inc.* 6
6,900 Glenayre Technologies, Inc.* 121
2,900 Harmonic, Inc.* 241
5,400 Interdigital Communications Corp.* 136
2,600 International Fibercom, Inc.* 62
900 IPC Communications, Inc.* 185
2,600 MRV Communications, Inc.* 238
2,400 Network Equipment Tech, Inc.* 24
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
SMALL CAP INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
COMMON STOCKS - 96.3% (CONT'D.)
TELECOMMUNICATION
EQUIPMENT - 4.1% (CONT'D.)
1,700 North Pittsburgh Systems, Inc. $ 22
600 Northeast Optic Network, Inc.* 51
300 Optical Cable Corp.* 9
10,400 Paging Network, Inc.* 27
7,500 Pairgain Technologies, Inc.* 140
7,100 P-Com, Inc.* 131
4,500 Picturetel Corp.* 39
1,800 Plantronics, Inc.* 168
1,600 Powerwave Technologies, Inc.* 200
1,300 Proxim, Inc.* 166
1,093 Superior Telecom, Inc. 14
3,100 Tekelec* 115
1,700 Terayon Communication Systems, Inc.* 348
1,300 Tut Systems, Inc.* 77
4,100 Weblink Wireless, Inc.* 55
1,900 Westell Technologies, Inc., Class A* 61
5,000 World Access, Inc.* 96
----------
4,679
----------
TELECOMMUNICATIONS - 2.4%
3,486 Adaptive Broadband Corp.* 187
1,700 Adelphia Business Solutions, Inc.* 105
1,800 Aerial Communications, Inc.* 102
2,000 American Mobile Satellite Corp.* 48
1,200 Arguss Holdings, Inc.* 27
5,300 Aspect Communications Corp.* 196
3,700 Caprock Communications Corp.* 181
1,133 Commonwealth Telephone Enterprises, Inc.* 53
1,000 CT Communications, Inc. 60
1,500 CTC Communications Group, Inc.* 64
5,700 e.Spire Communications, Inc.* 40
1,000 Electric Lightwave, Inc., Class A* 24
4,200 General Communication Corp., Class A* 23
5,300 ICG Communications, Inc.* 191
2,200 IDT Corp.* 91
600 Inet Technologies, Inc.* 32
5,400 ITC Deltacom, Inc.* 192
300 Latitude Communications, Inc.* 8
2,200 Leap Wireless International, Inc.* 217
2,250 Mastec, Inc.* 200
1,700 Metricom, Inc.* 79
1,900 MGC Communications, Inc.* 136
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
1,600 Pacific Gateway Exchange, Inc.* $ 23
2,800 Powertel, Inc.* 194
4,840 Price Communications Corp.* 111
5,200 Ptek Holdings, Inc.* 34
4,000 Star Telecommunications, Inc.* 24
4,500 Talk.com, Inc.* 72
1,100 US LEC Corp.* 44
1,000 West Teleservices Corp.* 26
----------
2,784
----------
TELEPHONE - 0.5%
1,400 CFW Communications Co. 55
5,300 Intermedia Communications, Inc.* 256
3,200 Primus Telecommunications Group, Inc.* 165
1,600 Viatel, Inc.* 80
----------
556
----------
TEXTILES - 0.1%
1,700 Dan River, Inc., Class A* 11
2,150 G & K Services, Inc., Class A 42
1,725 Guilford Mills, Inc. 13
1,000 Pillowtex Corp. 4
1,200 Springs Industries, Inc., Class A 46
1,200 Unifirst Corp. 13
----------
129
----------
TOBACCO - 0.1%
1,395 Brooke Group Ltd. 17
4,950 Dimon, Inc. 12
800 General Cigar Holdings, Inc.* 12
3,400 Universal Corp. 51
----------
92
----------
TOYS/GAMES/HOBBIES - 0.2%
1,600 Action Performance Co., Inc.* 21
5,900 Boyds Collection Ltd.* 36
1,900 Department 56, Inc.* 28
1,650 Jakks Pacific, Inc.* 36
900 Marvel Enterprises, Inc.* 5
1,300 Racing Champions Corp.* 5
4,800 Topps (The) Co.* 40
----------
171
----------
TRANSPORTATION - 1.4%
5,400 Airborne Freight Corp. 130
4,800 Alexander & Baldwin, Inc. 99
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
2,400 American Freightways Corp.* $ 36
2,100 Arnold Industries, Inc. 27
1,550 Atlas Air, Inc.* 42
4,600 C.H. Robinson Worldwide, Inc. 171
1,350 Circle International Group, Inc. 35
2,200 Consolidated Freightways Corp.* 13
800 Covenant Transport, Inc., Class A* 13
1,750 EGL, Inc.* 41
3,400 Florida East Coast Industries, Inc. 165
1,600 Forward Air Corp.* 38
2,200 Fritz Co., Inc.* 22
1,916 Heartland Express, Inc.* 27
700 Hub Group, Inc., Class A* 11
2,400 J.B. Hunt Transport Services, Inc. 33
2,700 Kirby Corp.* 53
750 Knight Transportation, Inc.* 13
1,100 Landstar System, Inc.* 60
1,000 MS Carriers, Inc.* 23
2,327 Offshore Logistics, Inc.* 32
2,800 Overseas Shipholding Group, Inc. 64
1,400 Roadway Express, Inc. 28
4,075 Swift Transportation Co., Inc.* 84
2,900 U.S. Freightways Corp. 109
700 U.S. Xpress Enterprises, Inc., Class A* 6
3,437 Werner Enterprises, Inc. 58
5,700 Wisconsin Central Transport Co.* 70
2,800 Yellow Corp.* 52
----------
1,555
----------
TRUCKING & LEASING - 0.1%
1,000 Amerco, Inc.* 18
1,400 Interpool, Inc. 9
5,175 Rollins Truck Leasing Corp. 44
1,500 Xtra Corp.* 57
----------
128
----------
NUMBER VALUE
OF SHARES (000S)
-----------------------------------------------------------------------
WATER - 0.3%
1,000 American States Water Co. $ 30
1,300 California Water Service Group, Inc. 30
1,000 E'town Corp. 63
3,900 Philadelphia Suburban Corp. 71
200 SJW Corp. 23
3,088 United Water Resources, Inc. 107
----------
324
----------
Total Common Stocks
(cost $92,029) 109,471
----------
PREFERRED STOCK - 0.0%
(cost $0 )
2,400 O'Sullivan Industries Holdings, Inc. 1
----------
RIGHTS & WARRANTS - 0.0%
650 Pico Holdings, Inc., Rights* -
51 Sound Advice, Inc., Warrants* -
495 Sunbeam Corp., Warrants* 1
45 Xytronyx, Inc., Warrants* -
25 York Research Corp., Warrants* -
----------
Total Rights & Warrants
(Cost $0) 1
----------
OTHER - 0.0%
4,212 Escrow CFS Group, Inc. $ -
4,400 Escrow Millicom, Inc. -
3,400 Escrow Northeast Bancorp, Inc. -
2,318 Escrow Strawbridge & Clothier -
----------
Total Other
(Cost $0) -
----------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
SMALL CAP INDEX FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
-----------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 3.4%
$ 590 U.S. Treasury Bill,
5.60%, 6/22/00<F1> 582
3,285 UBS A.G., Grand Cayman,
Eurodollar Time Deposits,
6.375%, 4/3/00 3,285
----------
Total Short-Term Investments
(cost $3,866) 3,867
----------
Total Investments - 99.7%
(cost $95,895) 113,340
Other Assets less Liabilities - 0.3% 372
----------
NET ASSETS - 100.0% $113,712
==========
OPEN FUTURES CONTRACTS:
Notional Unrealized
Number of Amount Contract Contract Loss
Type Contracts (000s) Position Exp. (000s)
--------------------------------------------------------------------------------
Russell 2000 15 $4,090 Long 6/00 $(290)
-----
<F1> Security pledged as collateral to cover margin requirements for open
futures contracts.
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
---------------------------------------
SCHEDULES OF INVESTMENTS MARCH 31, 2000
SMALL CAP FUND
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
COMMON STOCKS - 95.0%
ADVERTISING - 1.2%
9,300 Cyrk, Inc.* $ 82
12,800 Getty Images, Inc.* 460
900 Grey Advertising, Inc. 368
53,000 Ha-Lo Industries, Inc.* 417
7,350 Penton Media, Inc. 191
30,600 Telespectrum Worldwide, Inc.* 214
13,200 True North Communications, Inc. 519
2,125 Valuevision International, Inc., Class A* 88
-------------
2,339
-------------
AEROSPACE & DEFENSE - 0.9%
5,177 AAR Corp. 86
26,900 BE Aerospace, Inc.* 158
10,800 Curtiss-Wright Corp. 396
6,781 Fairchild Corp. (The), Class A* 46
34,000 Orbital Sciences Corp.* 510
7,100 Primex Technologies, Inc. 151
1,300 SPACEHAB, Inc.* 6
4,200 Titan Corp.* 214
15,800 United Industrial Corp. 158
-------------
1,725
-------------
AIRLINES - 0.7%
5,700 Alaska Airgroup, Inc.* 171
12,300 Amtran, Inc.* 220
5,641 Hawaiian Airlines, Inc.* 13
38,400 Mesa Air Group, Inc.* 240
20,700 Skywest, Inc. 810
-------------
1,454
-------------
APPAREL - 0.7%
13,550 Burlington Industries, Inc.* 59
8,200 Cone Mills Corp.* 35
32,500 Delta Woodside Industries, Inc. 55
9,600 Donna Karan International, Inc.* 74
6,500 Florsheim Group, Inc.* 18
9,300 Hartmarx Corp.* 26
21,050 Kellwood Co. 370
11,300 Nautica Enterprises, Inc.* 133
1,100 Oxford Industries, Inc. 20
2,300 Perry Ellis International, Inc.* 23
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
23,300 Phillips-Van Heusen, Inc. $ 179
16,600 Russell Corp. 238
6,900 Superior Uniform Group, Inc. 68
14,800 Wolverine World Wide, Inc. 163
-------------
1,461
-------------
AUTO PARTS & EQUIPMENT - 0.6%
10,000 Arvin Industries, Inc. 226
19,400 Bandag, Inc. 446
5,095 Dura Automotive Systems, Inc.* 88
300 Edelbrock Corp.* 3
16,600 Exide Corp. 196
11,400 Standard Motor Products, Inc. 170
15,400 Titan International, Inc. 111
-------------
1,240
-------------
BANKS - 3.8%
5,500 Area Bancshares Corp. 109
2,600 Bancfirst Corp. 69
12,100 Bay View Capital Corp. 91
14,933 Brenton Banks, Inc. 125
19,400 Carolina First Corp. 255
400 Cass Commerical Corp. 8
5,000 Cathay Bancorp, Inc. 230
500 CB Bancshares, Inc. 12
3,847 Centura Banks, Inc. 176
8,132 Chittenden Corp. 241
9,300 Citizens Banking Corp. 181
3,000 City Holding Co. 36
800 Commercial Bank of New York 8
6,400 Community Bank System, Inc. 146
4,257 Community Trust Bancorp, Inc. 77
2,800 Corus Bankshares, Inc. 66
1,575 Covest Bancshares, Inc. 15
10,600 CPB, Inc. 260
21,664 First Charter Corp. 282
270 First M & F Corp. 6
3,250 First Merchants Corp. 65
6,900 First Republic Bank* 137
6,700 First United Bancshares, Inc. 69
18,480 FNB Corp. 340
11,800 GBC Bancorp 274
10,730 Grand Premier Financial, Inc. 148
2,900 Hancock Holding Co. 90
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
SMALL CAP FUND (continued)
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
COMMON STOCKS - 95.0% (CONT'D.)
BANKS - 3.8% (CONT'D)
12,041 Hudson United Bancorp $ 261
17,064 Imperial Bancorp* 529
2,200 Interchange Financial Services, Inc. 31
3,700 International Bancshares Corp. 150
6,250 Interwest Bancorp, Inc. 86
1,400 ISB Financial Corp. 19
300 James River Bankshares, Inc. 3
100 Mahaska Investment Co. 1
500 Merchants Bancshares, Inc. 9
11,521 Mid-America Bancorp 300
9,400 National Bancorp of Alaska, Inc. 355
6,563 NBT Bancorp, Inc. 95
44,200 North Fork Bancorp 790
1,500 Northern States Financial Corp.* 29
4,200 Old Second Bancorp, Inc. 91
12,551 Premier National Bancorp 190
150 Princeton National Bancorp 2
11,649 Provident Bankshares Corp 183
6,100 Republic Bancshares, Inc.* 77
32,619 Republic Security Financial Corp. 214
37,300 Riggs National Corp. 455
800 Southwest Bancorp, Inc. 14
4,400 Sterling Bancorp 66
11,500 Wesbanco, Inc. 222
-------------
7,688
-------------
BEVERAGES - 0.0%
300 Farmer Brothers Co. 54
-------------
BIOTECHNOLOGY - 2.7%
3,625 Affymetrix, Inc.* 538
1,900 Bionova Holding Corp.* 3
13,000 Creative Biomolecules, Inc.* 129
4,600 Genome Therapeutics Corp.* 108
10,050 Human Genome Sciences, Inc.* 835
6,400 IDEC Pharmaceuticals Corp.* 629
5,500 Incyte Pharmaceuticals, Inc.* 479
9,500 Liposome Co. (The), Inc.* 166
7,075 Millennium Pharmaceuticals, Inc.* 919
41,500 Nexell Therapeutics, Inc.* 159
15,600 Northfield Laboratories, Inc.* 312
9,000 PE Corp.-Celera Genomics Group* 824
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
2,300 Protein Design Labs, Inc.* $ 183
1,000 Regeneron Pharmaceuticals, Inc.* 30
-------------
5,314
-------------
BUILDING MATERIALS - 1.2%
16,900 Advanced Lighting Technology Co.* 317
800 Ameron International Corp. 28
4,000 Butler Manufacturing Co. 98
1,096 Coorstek, Inc.* 44
16,350 Florida Rock Industries, Inc. 458
13,000 Genlyte Group, Inc.* 254
1,473 Juno Lighting, Inc.* 14
9,477 Mestek, Inc.* 160
10,100 Nortek, Inc.* 223
1,500 Puerto Rican Cement Co., Inc. 48
25,300 Texas Industries, Inc. 787
-------------
2,431
-------------
CHEMICALS - 1.5%
1,210 Aceto Corp.* 10
8,100 Arch Chemicals, Inc. 162
5,300 Bush Boake Allen, Inc.* 147
22,800 Cambrex Corp. 992
2,500 Chemfab Corp.* 37
15,100 Chemfirst, Inc. 293
36,800 Ethyl Corp. 113
27,600 Hanna (M.A.) Co. 312
26,400 International Specialty Products, Inc.* 170
8,200 MacDermid, Inc. 217
3,600 Mississippi Chemical Corp. 25
24,400 Schulman (A.), Inc. 323
900 Sybron Chemicals, Inc.* 13
7,200 Wellman, Inc. 143
-------------
2,957
-------------
COAL - 0.1%
25,504 Arch Coal, Inc. 179
-------------
COMMERCIAL SERVICES - 2.8%
13,300 Aurora Biosciences Corp.* 544
24,300 Avis Group Holdings, Inc.* 428
20,200 Banta Corp. 371
2,100 Berlitz International, Inc.* 24
35,926 Bowne & Co., Inc. 463
1,200 Cadmus Communications Corp. 11
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
7,800 CDI Corp.* $ 148
12,000 Chemed Corp. 360
500 Childtime Learning Centers, Inc.* 4
4,200 Correctional Services Corp.* 20
32,600 Data Broadcasting Corp.* 249
4,400 Dollar Thrifty Automotive Group* 76
22,074 Encompass Services Corp.* 127
15,150 Franklin Covey Co.* 110
8,700 Health Management Systems, Inc.* 42
7,516 Healthcare Services Group* 41
5,500 Insurance Auto Auctions, Inc.* 93
9,800 Integrated Electrical Services* 51
14,150 Interim Services, Inc.* 263
5,800 Lason, Inc.* 38
885 Monro Muffler Brake, Inc.* 7
34,221 National Processing, Inc.* 325
12,700 NCO Group, Inc.* 406
27,600 Personnel Group of America, Inc.* 169
25,400 Phycor, Inc.* 26
3,600 Primark Corp.* 87
23,800 Protection One, Inc.* 49
3,649 Quest Education Corp.* 31
45,600 Renaissance Worldwide, Inc.* 238
7,600 Right Management Consultants, Inc.* 70
2,800 Rural/Metro Corp.* 3
5,350 Staffmark, Inc.* 42
6,700 Strategic Distribution, Inc.* 14
11,200 Thermo Terratech, Inc.* 87
59,298 U.S. Oncology, Inc.* 267
11,500 Volt Information Sciences, Inc.* 413
-------------
5,697
-------------
COMPUTERS - 5.2%
7,400 ACT Networks, Inc.* 75
1,800 Adept Technology, Inc.* 22
1,575 Ancor Communications, Inc.* 65
38,000 Anixter International, Inc.* 1,059
37,800 Applied Magnetics Corp.* 2
8,500 Auspex Systems, Inc.* 93
1,800 BTG, Inc.* 17
4,700 Computer Network Tech Corp.* 82
19,300 eLoyalty Corp.* 461
6,275 Emulex Corp.* 685
10,900 Evans & Sutherland Computers Corp.* 123
16,150 Exabyte Corp.* 120
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
1,700 Franklin Electronic Publishers, Inc.* $ 12
5,000 Hutchinson Technology, Inc.* 88
30,174 Inacom Corp.* 83
48,150 Intergraph Corp.* 427
11,167 InterVoice-Brite, Inc.* 322
90,300 Mentor Graphics Corp.* 1,366
27,100 Metamor Worldwide, Inc.* 767
7,900 MicroTouch Systems, Inc.* 101
16,600 MTS Systems Corp. 127
4,700 National TechTeam, Inc.* 26
19,900 Network Computing Devices, Inc.* 104
6,400 Network Peripherals, Inc.* 227
15,200 ODS Networks, Inc.* 365
1,000 Overland Data, Inc.* 14
11,300 Par Technology Corp. 49
2,000 Printronix, Inc.* 40
10,900 Rainbow Technologies, Inc.* 407
36,300 Read-Rite Corp.* 170
7,800 RSA Security, Inc.* 404
46,905 S3, Inc.* 985
2,400 Sandisk Corp.* 294
4,900 Silicon Storage Technology, Inc.* 362
5,900 Software Spectrum, Inc.* 125
19,300 Technology Solutions Co.* 176
79,200 Tyler Technologies, Inc.* 470
3,500 Verilink Corp.* 51
-------------
10,366
-------------
COSMETICS/PERSONAL CARE - 0.0%
168 Paragon Trade Brands, Inc.* 2
400 Stephan Co. 2
-------------
4
-------------
DISTRIBUTION/WHOLESALE - 1.1%
7,200 Advanced Marketing Services, Inc. 149
22,700 Aviall, Inc.* 192
3,500 Aviation Sales Co.* 22
6,400 Bell Microproducts, Inc.* 110
4,995 Building Material Holding Co.* 45
33,300 Handleman Co.* 296
23,500 Hughes Supply, Inc. 364
5,100 Merisel, Inc.* 9
1,500 NuCo2, Inc.* 20
22,000 Owens & Minor, Inc. 234
4,400 PrimeSource Corp. 23
19,740 United Stationers, Inc.* 704
-------------
2,168
-------------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
SMALL CAP FUND (continued)
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
COMMON STOCKS - 95.0% (CONT'D.)
DIVERSIFIED FINANCIAL SERVICES - 1.6%
6,100 Advest Group, Inc. $ 116
12,000 Amplicon, Inc. 127
13,300 Amresco, Inc.* 18
34,600 Arcadia Financial Ltd.* 173
1,000 Atlanta Sosnoff Capital Corp*. 9
48,000 Credit Acceptance Corp.* 261
10,650 Dain Rauscher Corp. 702
5,900 Delta Financial Corp.* 12
18,800 Doral Financial Corp. 213
11,200 DVI, Inc.* 160
693 First Albany Cos., Inc. 24
5,915 Metris Cos., Inc. 230
5,700 National Discount Brokers Group, Inc.* 281
4,700 New Century Financial Corp.* 47
800 NextCard, Inc.* 12
27,900 Phoenix Investment Partners 216
4,976 Resource Bancshares Mortgage Group, Inc. 20
6,987 Southwest Securities Group, Inc. 303
681 Stifel Financial Corp. 7
9,800 WFS Financial, Inc.* 190
-------------
3,121
-------------
ELECTRIC - 2.0%
7,400 CH Energy Group, Inc. 225
8,400 Cleco Corp. 279
7,050 CMP Group, Inc. 205
9,000 Eastern Utilities Association, Inc. 282
870 Empire District Electric Co. 17
1,894 Energy East Corp. 38
7,700 Northwestern Corp. 159
7,800 Public Service Co. of New Mexico 123
25,000 Sigcorp, Inc. 625
18,200 TNP Enterprises, Inc. 797
9,700 Trigen Energy Corp. 228
3,200 United Illuminating Co. 126
3,000 Unitil Corp. 89
31,100 WPS Resources Corp. 807
-------------
4,000
-------------
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
ELECTRICAL COMPONENTS &
EQUIPMENT - 0.4%
2,300 C-Cube Microsystems, Inc.* $ 167
12,300 Encore Wire Corp.* 88
5,600 Insteel Industries, Inc. 32
4,864 Intermagnetics General Corp.* 83
16,100 Valence Technology, Inc.* 379
-------------
749
-------------
ELECTRONICS - 5.5%
8,300 ADE Corp. 183
5,000 Analogic Corp. 184
8,628 Avnet, Inc. 544
26,200 BAE Systems Canada, Inc. 308
2,650 Bel Fuse, Inc., Class A* 54
3,350 Bel Fuse, Inc., Class B 70
14,400 Benchmark Electronics, Inc.* 533
23,400 Checkpoint Systems, Inc.* 196
17,700 Coherent, Inc.* 920
5,975 CTS Corp. 341
11,650 Cubic Corp. 262
10,000 DII Group, Inc.* 1,131
7,700 FLIR Systems, Inc.* 71
9,600 IFR Systems, Inc.* 59
30,000 Integrated Device Technology, Inc.* 1,189
3,100 ITI Technologies, Inc.* 92
7,000 Itron, Inc.* 49
9,500 Kemet Corp.* 601
2,700 Mackie Designs, Inc.* 17
4,400 Micrel, Inc.* 422
200 Moore Products Co.* 11
3,200 Newport Corp. 432
15,800 Park Electrochemical Corp. 387
17,300 Paxar Corp.* 167
8,700 PerkinElmer, Inc. 579
1,100 Planar Systems, Inc.* 13
1,300 Recoton Corp.* 15
3,300 Rofin-Sinar Technologies, Inc.* 40
3,900 Sheldahl, Inc.* 23
800 Sparton Corp.* 4
10,500 Standard Microsystems Corp.* 153
7,200 Tech-Sym Corp.* 145
11,900 Thermedics, Inc.* 97
16,900 Thermo Optek Corp.* 251
22,800 Thermoquest Corp.* 382
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
9,600 TSI, Inc. $ 142
12,700 Universal Electronics, Inc.* 308
4,100 Varian, Inc.* 157
2,200 Veeco Instruments, Inc.* 163
10,500 Woodward Governor Co. 242
-------------
10,937
-------------
ENGINEERING & CONSTRUCTION - 0.6%
3,291 Anthony & Sylvan Pools Corp.* 24
22,700 Foster Wheeler Corp. 153
10,700 Granite Construction, Inc. 289
37,250 Morrison Knudsen Corp.* 275
6,200 Pitt-Des Moines, Inc. 140
14,500 Stone & Webster, Inc. 210
15,383 URS Corp.* 202
-------------
1,293
-------------
ENTERTAINMENT - 1.2%
4,100 AMC Entertainment, Inc.* 21
4,500 Ameristar Casinos, Inc.* 16
21,000 Argosy Gaming Co.* 299
40,100 Ascent Entertainment Group* 609
47,000 Boyd Gaming Corp.* 232
2,700 Carmike Cinemas, Inc., Class A* 15
5,600 GC Cos., Inc.* 195
5,000 Isle of Capri Casinos, Inc.* 63
6,774 Loews Cineplex Entertainment Co.* 24
10,800 Mikohn Gaming Corp.* 78
23,637 Pinnacle Entertainment, Inc.* 480
14,400 Station Casinos, Inc.* 314
3,800 Vail Resorts, Inc.* 61
-------------
2,407
-------------
ENVIRONMENTAL CONTROL - 0.4%
4,400 Ionics, Inc.* 112
38,472 IT Group, Inc.* 291
2,029 Layne Christensen Co.* 9
4,000 Mine Safety Appliances Co. 277
20,275 Safety-Kleen Corp.* 27
10,572 Thermo Ecotek Corp.* 87
-------------
803
-------------
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
FOOD - 0.9%
34,818 Chiquita Brands International, Inc.* $ 165
30,000 Earthgrains Co. 446
14,944 Imperial Sugar Co.* 26
16,100 International Multifoods Corp. 215
6,100 J & J Snack Foods Corp.* 121
18,000 Michael Foods, Inc. 378
6,600 Midwest Grain Products, Inc.* 42
12,650 Pilgrims Pride Corp., Class A 62
25,300 Pilgrims Pride Corp., Class B 160
2,400 Riviana Foods, Inc. 38
540 Seaboard Corp. 96
2,714 WLR Foods, Inc.* 16
12,527 Zapata Corp.* 59
-------------
1,824
-------------
FOREST PRODUCTS & PAPER - 0.4%
12,675 Chesapeake Corp. 375
20,500 Pope & Talbot, Inc. 377
-------------
752
-------------
GAS - 1.7%
7,300 CTG Resources, Inc. 271
15,500 Eastern Enterprises, Inc. 928
27,500 Energen Corp. 438
1,100 EnergyNorth, Inc. 64
20,300 Northwest Natural Gas Co. 396
10,900 NUI Corp. 282
4,400 Providence Energy Corp. 167
600 South Jersey Industries, Inc. 17
8,360 Southern Union Co.* 151
27,000 Southwest Gas Corp. 515
15,300 Southwestern Energy Co. 101
6,700 UGI Corp. 145
-------------
3,475
-------------
HAND/MACHINE TOOLS - 0.5%
3,700 Axsys Technologies, Inc.* 55
7,100 Hardinge, Inc. 73
20,600 Kennametal, Inc. 619
10,400 Milacron, Inc. 150
3,700 Powell Industries, Inc.* 36
534 Starret (L.S.) Co., Class B 12
-------------
945
-------------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
SMALL CAP FUND (continued)
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
COMMON STOCKS - 95.0% (CONT'D.)
HEALTH CARE - 4.5%
20,900 Acuson Corp.* $ 310
5,500 Advanced Neuromodulation Systems, Inc.* 104
10,900 American Healthways, Inc.* 42
22,700 Apria Healthcare Group, Inc.* 328
8,900 ATS Medical, Inc.* 99
1,800 BioReliance Corp.* 10
8,400 Biosite Diagnostics, Inc.* 205
9,700 Clintrials Research, Inc.* 38
2,500 Cohesion Technologies, Inc.* 37
7,600 CONMED Corp.* 190
7,100 Cyberonics, Inc.* 133
16,000 Datascope Corp. 508
700 DEL Global Technologies Corp.* 6
9,300 Diagnostic Products Corp. 227
600 Dianon Systems, Inc.* 12
22,700 Endosonics Corp.* 143
12,575 Gentiva Health Services, Inc.* 90
18,447 Haemonetics Corp.* 415
5,500 Hologic, Inc.* 44
29,963 IDEXX Laboratories, Inc.* 699
9,700 Igen International, Inc.* 243
8,800 Immucor, Inc.* 87
41,100 Integrated Health Services, Inc.* 11
51,100 Isolyser Co., Inc.* 262
2,750 LabOne, Inc. 18
54,800 Laboratory Corp. of America Holdings 236
1,200 Lunar Corp.* 14
53,700 Matria Healthcare, Inc.* 285
17,416 Molecular Biosystems, Inc.* 22
9,800 NMT Medical, Inc.* 41
7,100 Orthologic Corp.* 43
11,000 Polymedica Corp.* 646
13,100 Prime Medical Services, Inc.* 116
32,000 PSS World Medical, Inc.* 217
18,700 Quest Diagnostics, Inc.* 743
16,497 Quidel Corp.* 115
67,900 Quorum Health Group, Inc.* 683
7,200 RehabCare Group, Inc.* 178
25,800 Res-Care, Inc.* 242
22,675 Sierra Health Services, Inc.* 112
13,450 Sola International, Inc.* 82
7,000 Spacelabs Medical, Inc.* 112
26,100 Summit Technology, Inc.* 238
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
7,100 Thermotrex Corp.* $ 73
8,400 Trex Medical Corp.* 25
14,461 Tripath Imaging, Inc.* 129
23,400 United Wisconsin Services, Inc. 130
7,500 Urocor, Inc.* 37
8,700 Vital Signs, Inc.* 200
-------------
8,980
-------------
HOME BUILDERS - 2.4%
8,200 Beazer Homes U.S.A., Inc.* 154
14,500 Engle Homes, Inc. 141
21,200 Kaufman & Broad Home Corp. 454
6,100 M/I Schottenstein Homes, Inc. 96
46,100 MDC Holdings, Inc. 827
10,150 NVR, Inc.* 548
30,700 Ryland Group, Inc. 576
4,100 Schuler Homes, Inc.* 25
9,300 Skyline Corp. 202
3,200 Southern Energy Homes, Inc.* 4
48,350 Standard Pacific Corp. 483
10,200 Thor Industries, Inc. 248
14,600 Toll Brothers, Inc.* 292
16,150 U.S. Home Corp.* 614
10,536 Webb (Del E.) Corp.* 156
-------------
4,820
-------------
HOME FURNISHINGS - 1.1%
5,268 Bassett Furniture Industries, Inc. 74
19,200 Fedders Corp. 107
2,600 Flexsteel Industries, Inc. 32
14,000 Furniture Brands International, Inc.* 263
12,180 Harman International, Inc. 731
1,150 Knape & Vogt Manufacturing Co. 18
28,600 La-Z-Boy, Inc. 440
15,219 Royal Appliance Manufacturing Co.* 75
56,000 Sunbeam Corp.* 234
17,800 Windmere-Durable Holdings, Inc.* 262
-------------
2,236
-------------
HOUSEHOLD PRODUCTS/WARES - 0.9%
14,500 American Business Products, Inc.* 290
8,400 Central Garden & Pet Co.* 83
12,100 CNS, Inc.* 53
7,900 CSS Industries, Inc.* 151
12,800 Harland (John H.) Co. 173
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
15,000 Helen of Troy Ltd.* $ 103
5,600 Hunt Corp. 50
4,400 Nashua Corp.* 37
17,800 Russ Berrie & Co., Inc. 329
38,300 Standard Register Co. 493
1,800 Swiss Army Brands, Inc.* 9
-------------
1,771
-------------
HOUSEWARES - 0.2%
32,950 Metromedia International Group, Inc.* 185
6,700 Mikasa, Inc. 50
7,300 National Presto Industries, Inc. 238
-------------
473
-------------
INSURANCE - 3.9%
22,425 Ace Ltd. 513
14,900 Alfa Corp. 264
1,800 Allcity Insurance Co.* 17
21,300 Amerus Life Holdings, Inc., Class A 386
6,264 Argonaut Group, Inc. 126
1,900 Baldwin & Lyons, Inc., Class B 37
2,400 Capitol Transamerica Corp. 29
28,100 CNA Surety Corp. 392
8,500 Commerce Group, Inc. 251
3,300 Danielson Holding Corp.* 21
29,275 Enhance Financial Services Group Co. 413
2,400 Farm Family Holdings, Inc.* 71
24,000 FBL Financial Group, Inc., Class A 360
27,000 Frontier Insurance Group, Inc.* 27
3,200 Gainsco, Inc. 19
33,200 Harleysville Group, Inc. 481
22,385 Kansas City Life Insurance Co. 540
10,800 LandAmerica Financial Group, Inc. 209
300 Meadowbrook Insurance Group, Inc. 1
1,368 Meridian Insurance Group, Inc. 17
9,100 Midland Co. 214
100 Old Guard Group, Inc. 1
3,300 Penn Treaty American Corp.* 55
34,600 Presidential Life Corp. 476
4,411 Professionals Group, Inc.* 85
7,450 PXRE Group Ltd. 127
6,533 Radian Group Inc. 311
40,700 Reliance Group Holdings, Inc. 142
5,300 Renaissancere Holdings Ltd. 217
9,100 RLI Corp. 305
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
9,200 RTW, Inc.* $ 46
6,900 SCPIE Holdings, Inc. 211
26,200 Selective Insurance Group, Inc. 447
10,900 State Auto Financial Corp. 87
11,200 Stewart Information Services Corp. 177
11,720 Trenwick Group, Inc. 166
4,050 United Fire & Casualty Co. 78
8,400 W.R. Berkley Corp. 194
12,000 Zenith National Insurance Co. 266
-------------
7,779
-------------
INVESTMENT COMPANIES - 0.1%
10,600 Kaiser Ventures, Inc.* 149
-------------
IRON/STEEL - 0.8%
3,300 Carpenter Technology Corp. 69
10,100 Cleveland-Cliffs, Inc. 240
12,900 Gibraltar Steel Corp. 212
5,300 Material Sciences Corp.* 72
25,500 Oregon Steel Mills, Inc. 99
23,118 Reliance Steel & Aluminum Co. 517
8,225 Roanoke Electric Steel Corp. 140
2,400 Ryerson Tull, Inc. 37
8,900 Shiloh Industries, Inc.* 93
8,300 Steel Technologies, Inc.* 66
-------------
1,545
-------------
LEISURE TIME - 0.2%
11,000 American Classic Voyages Co.* 277
9,700 Arctic Cat, Inc. 99
1,658 Coastcast Corp.* 28
2,300 Huffy Corp.* 10
200 K2, Inc.* 2
-------------
416
-------------
LODGING - 0.3%
28,150 Marcus Corp. 364
38,600 Prime Hospitality Corp.* 280
3,900 Suburban Lodges of America, Inc.* 24
2,900 Sunburst Hospitality Corp.* 14
-------------
682
-------------
MACHINERY-CONSTRUCTION & MINING - 0.2%
18,000 Astec Industries Inc.* 478
-------------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
SMALL CAP FUND (continued)
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
COMMON STOCKS - 95.0% (CONT'D.)
MACHINERY-DIVERSIFIED - 2.6%
15,300 Applied Industrial Technology, Inc. $ 245
5,700 Applied Science & Technology, Inc.* 172
105 Cascade Corp. 1
2,600 CTB International Corp.* 18
17,514 Detroit Diesel Corp. 335
17,900 FSI International, Inc.* 367
8,500 Gardner Denver, Inc.* 160
14,600 Gasonics International Corp.* 579
4,700 Gehl Co.* 86
29,800 Gerber Scientific, Inc. 575
22,500 Imation Corp.* 600
15,713 Kulicke & Soffa Industries, Inc.* 1,007
12,932 Magnetek, Inc.* 118
2,100 Sames Corp.* 30
23,876 SpeedFam-IPEC, Inc.* 475
2,800 Thermo Sentron, Inc.* 43
13,500 Thomas Industries, Inc. 253
8,700 Unova, Inc.* 117
-------------
5,181
-------------
MEDIA - 0.8%
1,700 Courier Corp. 40
1,850 Emmis Communications, Inc., Class A* 86
12,000 Lodgenet Entertainment Corp.* 241
15,900 On Command Corp.* 238
13,600 Paxson Communications Corp.* 105
12,100 Scholastic Corp.* 653
3,200 Thomas Nelson, Inc. 25
3,950 Westwood One, Inc.* 143
-------------
1,531
-------------
METAL FABRICATE/HARDWARE - 1.0%
5,900 Amcast Industrial Corp. 54
11,300 Ampco-Pittsburgh Corp. 123
14,500 Commercial Metals Co. 401
5,700 Fansteel, Inc.* 20
14,800 Maverick Tube Corp.* 480
14,500 Quanex Corp. 261
9,100 Shaw Group, Inc.* 321
11,900 Transportation Technology, Inc.* 256
3,400 Transtechnology Corp. 42
6,100 Wolverine Tube, Inc.* 78
-------------
2,036
-------------
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
METALS-DIVERSIFIED - 0.3%
11,100 Brush Wellman, Inc. $ 196
6,500 Century Aluminum Co. 89
49,850 Hecla Mining Co.* 69
4,300 Stillwater Mining Co.* 172
-------------
526
-------------
MINING - 0.2%
60,325 Meridian Gold, Inc.* 351
3,100 Oglebay Norton Co. 67
9,448 Zemex Corp.* 79
-------------
497
-------------
MISCELLANEOUS MANUFACTURING - 0.7%
6,100 Bairnco Corp. 42
16,497 Bell Industries, Inc.* 53
26,650 Griffon Corp.* 208
25,500 Justin Industries, Inc. 459
5,600 Katy Industries, Inc. 51
400 Lynch Corp.* 12
1,400 M & F Worldwide Corp.* 6
2,200 NCH Corp. 100
3,600 Osmonics, Inc.* 29
3,200 Park-Ohio Holdings Corp.* 34
14,000 Polymer Group, Inc. 178
1,400 Quixote Corp.* 17
2,100 SPS Technologies, Inc.* 64
16,533 Westinghouse Air Brake Co. 176
-------------
1,429
-------------
OFFICE/BUSINESS EQUIPMENT - 0.1%
14,900 General Binding Corp.* 142
-------------
OFFICE FURNISHINGS - 0.0%
4,090 Virco Manufacturing Corp. 42
-------------
OIL & GAS PRODUCERS - 2.5%
8,200 Atwood Oceanics, Inc.* 544
13,900 Basin Exploration, Inc.* 208
3,800 Callon Petroleum Corp.* 46
48,399 Chesapeake Energy Corp.* 157
12,300 Chieftain International, Inc.* 248
1,900 Clayton Williams Energy, Inc.* 31
22,900 Enterprise Products Partners L.P. 449
7,500 Giant Industries, Inc.* 67
11,600 Harken Energy Corp.* 12
See Notes to the Financial Statement
<PAGE>
NORTHERN FUNDS Annual Report
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
17,875 Houston Exploration Co.* $ 322
18,100 HS Resources, Inc.* 382
23,343 Louis Dreyfus Natural Gas Corp.* 794
19,100 Meridian Resource Corp.* 74
19,680 Nabors Industries, Inc.* 764
2,100 Nuevo Energy Co.* 45
1,500 Penn Virginia Corp. 26
8,604 Swift Energy Co.* 154
31,100 Tesoro Petroleum Corp.* 358
16,530 Titan Exploration, Inc.* 83
16,300 Unit Corp.* 179
-------------
4,943
-------------
OIL & GAS SERVICES - 0.5%
1,100 Lufkin Industries, Inc. 16
6,200 RPC, Inc. 59
22,000 Stolt Comex Seaway S.A.* 308
16,500 Stolt Comex Seaway S.A. ADR* 171
7,500 Tetra Technologies, Inc.* 100
25,100 Tuboscope, Inc.* 427
-------------
1,081
-------------
PACKAGING & CONTAINERS - 0.2%
4,387 ACX Technologies, Inc.* 18
22,800 Longview Fibre Co. 336
-------------
354
-------------
PHARMACEUTICALS - 4.5%
11,300 Alliance Pharmaceutical Co.* 169
11,400 Axys Pharmaceuticals, Inc.* 88
12,842 Bergen Brunswig Corp., Class A 87
27,744 Bindley Western Industries, Inc. 376
8,542 Block Drug Co., Class A 235
27,151 Carter-Wallace, Inc. 509
12,900 Cephalon, Inc.* 484
3,500 Chirex, Inc.* 67
9,400 Corixa Corp.* 388
17,800 Dura Pharmaceuticals, Inc.* 219
11,441 Gilead Sciences, Inc.* 725
6,866 Herbalife International, Inc., Class A 97
19,100 Immune Response Corp.* 220
4,600 Matrix Pharmaceutical, Inc.* 47
4,200 Medarex, Inc.* 211
24,000 NABI, Inc. * 162
40,800 NBTY, Inc.* 558
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
11,574 Neurocrine Biosciences, Inc.* $ 269
5,500 Neurogen Corp.* 170
9,800 NPS Pharmaceuticals, Inc.* 148
2,200 Onyx Pharmaceuticals, Inc.* 31
25,300 OSI Pharmaceuticals, Inc.* 493
30,000 Perrigo Co.* 228
24,800 Pharmaceutical Resources, Inc.* 155
14,335 Priority Healthcare Corp., Class A* 659
82,100 Rexall Sundown, Inc.* 1,160
39,100 Scios, Inc.* 203
6,800 SICOR, Inc.* 71
11,800 Syncor International Corp.* 389
25,400 Veterinary Centers of America, Inc.* 349
-------------
8,967
-------------
PIPELINES - 0.3%
36,800 Western Gas Resources, Inc. 584
-------------
REAL ESTATE - 0.6%
9,300 Avatar Holdings, Inc.* 186
2,000 Echelon International Corp.* 68
15,600 Getty Realty Corp. 175
5,533 Jones Lang LaSalle, Inc.* 86
22,450 LNR Property Corp. 428
13,900 Trammell Crow Co,* 154
16,100 Wellsford Real Properties, Inc. * 140
-------------
1,237
-------------
REAL ESTATE INVESTMENT TRUSTS - 0.2%
10,600 Sovran Self Storage, Inc. 215
15,000 Winston Hotels, Inc. 116
-------------
331
-------------
RETAIL - 4.5%
15,000 AnnTaylor Stores Corp.* 345
5,098 Baker (J.), Inc. 36
9,600 Blair Corp. 154
38,915 Bob Evans Farms, Inc. 486
20,100 Bombay Co. (The), Inc.* 67
16,500 Brown Shoe Co., Inc. 198
17,200 Buffets, Inc.* 155
47,720 Burlington Coat Factory Warehouse Co. 820
27,900 Cash America International, Inc. 347
11,925 CEC Entertainment, Inc.* 323
100,500 Charming Shoppes, Inc.* 572
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
SMALL CAP FUND (continued)
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
COMMON STOCKS - 95.0% (CONT'D.)
RETAIL - 4.5% (CONT'D.)
7,900 Chart House Enterprises, Inc.* $ 41
15,800 CKE Restaurants, Inc.* 101
15,600 Copart, Inc.* 273
17,000 Creative Computers, Inc.* 186
9,900 Discount Auto Parts, Inc.* 88
19,172 Dress Barn, Inc.* 369
10,637 Drug Emporium, Inc.* 43
1,500 Duckwall-Alco Stores, Inc.* 12
1,521 Egghead.com, Inc.* 11
9,100 Gottschalks, Inc.* 48
20,900 Haverty Furniture, Inc. 222
44,000 Heilig-Meyers Co. 173
23,500 Hollywood Entertainment Corp.* 189
32,550 Homebase, Inc.* 65
24,450 Intertan, Inc.* 336
10,000 J. Jill Group, Inc.* 39
19,400 Jan Bell Marketing, Inc.* 56
13,500 Jo-Ann Stores, Inc., Class A* 113
8,700 Just For Feet, Inc.* 1
6,600 Lillian Vernon Corp. 63
36,100 Lone Star Steakhouse & Saloon, Inc.* 368
8,937 Movado Group Co. 90
24,900 Musicland Stores Corp.* 159
300 Quality Dining, Inc.* 1
5,700 Rare Hospitality International, Inc.* 111
4,200 Rex Stores Corp.* 107
49,000 Ryan's Family Steak Houses, Inc.* 469
500 S & K Famous Brands, Inc.* 4
22,500 Shopko Stores, Inc.* 399
18 Sound Advice, Inc.* -
7,400 Sport Supply Group, Inc.* 44
7,050 Sports Authority (The), Inc.* 18
5,500 Syms Corp.* 22
75 Talbots, Inc. 4
4,100 TCBY Enterprises, Inc. 24
2,000 Tractor Supply Co.* 41
19,200 Trans World Entertainment Co.* 192
4,158 Ubid, Inc.* 122
13,700 Ugly Duckling Corp.* 105
18,100 United Auto Group, Inc.* 159
4,840 Uno Restaurant Corp.* 53
23,640 Value City Department Stores, Inc.* 328
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
38,446 Venator Group, Inc.* $ 344
1,200 Wolohan Lumber Co. 13
-------------
9,109
-------------
SAVINGS & LOANS - 2.5%
8,114 Alliance Bancorp 145
1,700 Ambanc Holding Co., Inc. 23
160 Ameriana Bancorp, Inc. 1
4,600 American Bank Connecticut 95
10,664 Anchor Bancorp Wisconsin, Inc. 169
4,375 Andover Bancorp, Inc. 125
5,050 Coastal Bancorp, Inc. 83
5,000 Commonwealth Bancorp, Inc. 63
5,700 Dime Community Bancshares 90
33,274 Downey Financial Corp. 707
566 FFLC Bancorp, Inc. 6
1,400 FFY Financial Corp. 15
1,800 Fidelity Bankshares, Inc. 25
1,100 First Defiance Financial Corp. 9
5,100 First Essex Bancorp, Inc. 79
300 First Fed Bankshares of Arkansas, Inc. 4
12,100 First Federal Capital Corp. 141
14,060 First Indiana Corp. 260
6,000 First Northern Capital Corp. 75
30,917 First Sentinel Bancorp, Inc. 238
4,310 First Washington Bancorp, Inc. 79
17,000 First Federal Financial Corp.* 225
2,300 Flushing Financial Corp. 31
500 Hawthorne Financial Corp.* 4
100 HF Financial Corp. 1
1,150 HMN Financial, Inc. 12
600 Home Bancorp, Inc. 9
2,825 Home Federal Bancorp 50
1,290 Horizon Financial Corp. 12
500 Industrial Bancorp, Inc. 5
2,100 ITLA Capital Corp.* 27
6,800 Jefferson Savings Bancorp, Inc. 76
18,103 MAF Bancorp, Inc. 293
6,600 Medford Bancorp, Inc. 94
1,525 Monterey Bay Bancorp, Inc. 13
100 North Central Bancshares, Inc. 1
8,400 OceanFirst Financial Corp. 132
51,800 Ocwen Financial Corp.* 401
2,064 Ottawa Financial Corp. 36
200 Parkvale Financial Corp. 3
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
2,400 Pennfed Financial Services, Inc. $ 34
400 Permanent Bancorp, Inc. 7
8,500 PFF Bancorp, Inc. 132
368 Quaker City Bancorp, Inc.* 5
19,490 Queens County Bancorp, Inc. 352
300 Richmond County Financial Corp. 5
7,700 St. Francis Capital Corp. 108
400 Staten Island Bancorp, Inc. 7
900 Sterling Financial Corp.* 9
18,912 Webster Financial Corp. 435
3,365 Westcorp 47
100 WVS Financial Corp. 1
1,897 York Financial Corp. 26
-------------
5,025
-------------
SEMICONDUCTORS - 6.9%
600 Align-Rite International, Inc.* 16
19,125 Amkor Technology, Inc.* 1,015
27,777 Applied Materials, Inc.* 2,618
46,900 Cirrus Logic, Inc.* 856
5,425 Cree, Inc.* 612
13,200 Cypress Semiconductor Corp.* 651
10,300 Dallas Semiconductor Corp. 362
10,400 Electroglas, Inc.* 356
20,800 ESS Technology, Inc.* 364
8,700 Exar Corp.* 623
4,900 Integrated Silicon Solution, Inc.* 144
25,400 International Rectifier Corp.* 968
18,000 Lam Research Corp.* 811
2,575 Lattice Semiconductor Corp.* 174
3,000 Mattson Technology, Inc.* 128
27,615 MEMC Electronic Materials, Inc.* 556
1,900 Micro Linear Corp.* 16
1,800 MIPS Technologies, Inc., Class A* 100
12,758 Oak Technology, Inc.* 246
6,300 OPTi, Inc.* 33
7,057 Phoenix Technologies Ltd.* 149
31,200 Pioneer Standard Electronics, Inc. 491
5,700 Richardson Electronics Ltd. 63
21,200 Silicon Valley Group, Inc.* 583
8,200 Transwitch Corp.* 788
12,300 Triquint Semiconductor, Inc.* 904
14,000 Ultratech Stepper, Inc.* 200
-------------
13,827
-------------
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
SOFTWARE - 5.3%
3,100 3Dfx Interactive, Inc.* $ 37
13,200 AVT Corp.* 156
30,950 Broadvision, Inc.* 1,389
11,300 DIGI International, Inc.* 105
1,500 Go2net, Inc.* 121
1,375 HNC Software* 99
12,500 Indus International, Inc.* 105
36,900 Information Resources, Inc.* 295
10,975 Informix Corp.* 186
39,500 Inprise Corp.* 269
4,200 Inso Corp.* 57
14,950 Mercury Interactive Corp.* 1,185
4,200 Micromuse, Inc.* 583
15,000 Microstrategy, Inc.* 1,306
16,511 Netmanage, Inc.* 93
8,600 Netopia, Inc.* 619
2,900 Peregrine Systems, Inc.* 194
11,200 Progress Software Corp.* 263
4,650 QAD, Inc.* 41
7,325 S1 Corp.* 628
37,125 Santa Cruz Operation, Inc.* 348
35,673 Scansoft, Inc.* 181
245 Schawk, Inc. 2
2,700 Trident Microsystems, Inc.* 28
3,263 U.S. Internetworking, Inc.* 126
15,000 Verity, Inc.* 611
5,300 VerticalNet, Inc.* 721
39,400 Walker Interactive Systems, Inc.* 318
250 Zap.com Corp.* 2
1,900 Ziff-Davis, Inc. * 40
7,900 Zixit Corp.* 575
-------------
10,683
-------------
TELECOMMUNICATION EQUIPMENT - 3.1%
4,100 Advanced Fibre Communication, Inc.* 257
14,800 Allen Telecom, Inc.* 236
5,400 Centigram Communications Corp.* 103
7,300 Commscope, Inc.* 333
29,400 Corsair Communications, Inc.* 562
5,900 Dynatech Corp.* 85
8,125 EMS Technologies, Inc.* 163
36,050 Glenayre Technologies, Inc.* 633
1,525 Harmonic, Inc.* 127
13,200 Interdigital Communication Corp.* 333
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
SMALL CAP FUND (continued)
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
COMMON STOCKS - 95.0% (CONT'D.)
TELECOMMUNICATION/
EQUIPMENT - 3.1% (CONT'D.)
1,800 NetOptix Corp.* $ 309
23,100 Network Equipment Tech, Inc.* 231
3,300 Ortel Corp.* 619
43,400 Pairgain Technologies, Inc.* 811
4,100 Proxim, Inc.* 525
14,200 Spectralink Corp.* 256
7,800 Symmetricom, Inc.* 82
13,350 Telxon Corp. 234
18,132 VTEL Corp.* 141
10,303 World Access, Inc.* 197
-------------
6,237
-------------
TELECOMMUNICATIONS - 1.4%
3,600 Aerial Communications, Inc.* 205
7,800 Aspect Communications Corp.* 289
7,000 Commonwealth Telephone Enterprise, Inc.* 329
7,400 Davel Communications, Inc.* 18
9,300 IDT Corp.* 386
6,500 ITC Deltacom, Inc.* 232
45,625 Metrocall, Inc.* 456
5,000 Powertel, Inc.* 346
3,699 Voicestream Wireless Corp.* 477
-------------
2,738
-------------
TELEPHONE - 0.4%
6,680 Atlantic Tele-Network, Inc. 79
2,675 Intermedia Communications, Inc.* 129
12,877 Roseville Communications Co. 541
1,250 Viatel, Inc.* 63
-------------
812
-------------
TEXTILES - 0.1%
3,200 Angelica Corp. 32
5,700 Dixie Group, Inc.* 25
12,125 Guilford Mills, Inc. 93
4,462 Pillowtex Corp.* 18
8,400 Unifirst Corp. 94
-------------
262
-------------
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
TRANSPORTATION - 2.6%
19,200 American Freightways Corp.* $ 287
9,217 Arkansas Best Corp.* 97
14,400 Arnold Industries, Inc. 184
15,500 Circle International Group, Inc. 403
12,300 Consolidated Freightways Corp.* 73
24,050 Fritz Cos., Inc.* 243
11,400 Frozen Food Express Industries, Inc.* 38
19,495 J.B. Hunt Transport Services, Inc. 267
16,312 Kirby Corp.* 322
7,600 Kitty Hawk, Inc.* 36
6,400 Landstar System, Inc.* 350
3,700 Maritrans, Inc. 22
12,800 M.S. Carriers, Inc.* 301
13,000 Offshore Logistics* 180
4,200 Old Dominion Freight Lines, Inc.* 50
30,300 Overseas Shipholding Group Co. 695
1,100 Patriot Transportation Holding Co.* 23
8,000 RailAmerica, Inc.* 54
13,650 Roadway Express, Inc. 276
16,300 Teekay Shipping Corp. 449
30,000 Werner Enterprises, Inc. 510
16,007 Yellow Corp.* 295
-------------
5,155
-------------
TRUCKING & LEASING - 0.5%
27,525 AMERCO, Inc.* 506
9,814 Greenbrier Cos., Inc. 77
25,950 Interpool, Inc. 170
4,511 Xtra Corp.* 171
-------------
924
-------------
WATER - 0.9%
10,400 American States Water Co. 309
8,400 California Water Service Group Co. 192
6,600 E'town Corp. 417
13,684 Philadelphia Suburban Corp. 248
3,700 SJW Corp. 433
5,968 United Water Resources, Inc. 207
-------------
1,806
-------------
Total Common Stocks
(cost $173,565) 190,171
-------------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
PRICIPAL
AMOUNT VALUE
(000S) (000S)
-------------------------------------------------------------------------------
CORPORATE BONDS - 0.0%
(cost $16)
$22,140 Vicwest Corp.,*
12.50%, 3/10/07 $ 15
-------------
NUMBER
OF SHARES
---------
WARRANTS - 0.1%
7,778 Arch Communications Group, Inc.* 9
8,856 Jannock Properites Ltd.* 8
900 Lynch Interactive Corp.* 117
589 Paragon Trade Brands, Inc.* 2
50 Xytronyx, Inc.* -
8 York Research Corp.* -
-------------
Total Warrants
(cost $0) 136
-------------
OTHER - 0.0%
10,000 Escrow American Medical
Electronics, Inc.* -
220 Escrow Millicom American Satellite, Inc.* -
300 Escrow Northeast Bancorp, Inc.* -
589 Escrow Paragon Trade Brands* -
4,500 Escrow Strawbridge & Clothier, Inc.* -
-------------
Total Other
(cost $0) -
-------------
PRICIPAL
AMOUNT VALUE
(000S) (000S)
-------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 4.6%
$8,287 UBS. A.G., Grand Cayman,
Eurodollar Time Deposits,
6.375%, 4/3/00 $ 8,287
1,000 U.S. Treasury Bill,<F1>
5.60%, 6/22/00 987
-------------
Total Short-Term Investments
(cost $9,271) 9,274
-------------
Total Investments - 99.7%
(cost $182,852) 199,596
Other Assets less Liabilities - 0.3% 612
-------------
NET ASSETS - 100.0% $200,208
=============
OPEN FUTURES CONTRACTS:
Notional Unrealized
Number of Amount Contract Contract Gain (Loss)
Contracts (000s) Position Exp. (000s)
------------------------------------------------------------------------------
Russell 2000 25 $6,817 Long 6/00 $(513)
S&P/Barra Value 18 2,769 Long 6/00 143
-------
$(370)
=======
<F1> Security pledged as collateral to cover margin requirements for open
futures contracts.
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
SMALL CAP GROWTH FUND
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
COMMON STOCKS - 98.5%
BANKS - 2.6%
270,000 Imperial Bancorp* $ 8,370
85,700 Silicon Valley Bancshares* 6,160
-------------
14,530
-------------
BIOTECHNOLOGY - 1.1%
78,900 Inhale Therapeutic Systems, Inc.* 5,878
-------------
BUILDING MATERIALS - 1.0%
380,200 U.S. Aggregates, Inc. 5,465
-------------
CHEMICALS - 1.7%
265,300 Spartech Corp. 9,120
-------------
CLOSED-END FUNDS - 0.9%
169,000 H & Q Life Sciences Investors Fund 4,901
-------------
COMMERCIAL SERVICES - 5.1%
58,300 Aurora Biosciences Corp.* 2,383
325,800 Plexus Corp.* 21,706
205,500 Steiner Leisure Ltd.* 3,956
-------------
28,045
-------------
COMPUTERS - 3.6%
10,544 ArrowPoint Communications, Inc.* 1,249
185,000 National Computer Systems, Inc. 9,389
150,000 RadiSys, Inc.* 9,019
-------------
19,657
-------------
ELECTRONICS - 4.0%
89,100 Anadigics, Inc.* 5,881
275,800 Mettler Toledo International, Inc.* 11,291
37,000 Newport Corp. 4,995
-------------
22,167
-------------
ENTERTAINMENT - 1.6%
413,300 Station Casinos, Inc.* 9,015
-------------
FOOD - 2.9%
395,000 Hain Food Group, Inc.* 11,183
120,000 Whole Foods Market, Inc.* 4,972
-------------
16,155
-------------
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
COMMON STOCKS - 98.5%
HEALTH CARE - 8.0%
84,900 ArthroCare Corp.* $ 7,811
216,100 INAMED Corp.* 10,697
228,000 Novoste Corp.* 9,120
76,600 Techne Corp.* 5,285
220,800 Universal Health Services, Inc., Class B* 10,819
-------------
43,732
-------------
INSURANCE - 1.6%
272,200 Gallagher, Arthur J. & Co. 8,847
-------------
LEISURE TIME - 1.3%
289,000 American Classic Voyager* 7,279
-------------
MACHINERY-DIVERSIFIED - 2.5%
106,900 Advanced Energy Industries, Inc.* 5,452
148,700 Cognex Corp.* 8,578
-------------
14,030
-------------
MEDIA - 1.6%
207,100 Citadel Communications Corp.* 8,737
-------------
MISCELLANEOUS MANUFACTURING - 2.0%
294,700 Pentair, Inc. 10,922
-------------
OIL & GAS PRODUCERS - 3.6%
354,600 Marine Drilling Co., Inc.* 9,730
286,300 Triton Energy Ltd.* 10,038
-------------
19,768
-------------
PHARMACEUTICALS - 3.7%
220,000 Medicis Pharmaceutical Corp., Class A* 8,800
178,200 Titan Pharmaceuticals, Inc.* 5,546
119,400 Trimeris, Inc.* 5,963
-------------
20,309
-------------
REAL ESTATE INVESTMENT TRUSTS -1.9%
191,000 Pinnacle Holdings, Inc.* 10,553
-------------
RETAIL - 9.1%
418,300 Linens 'n Things, Inc.* 14,327
181,800 P.F. Chang's China Bistro, Inc.* 6,022
235,000 Men's Wearhouse, Inc.* 6,962
396,100 Too, Inc.* 12,502
231,500 Tweeter Home Entertainment Group* 10,244
-------------
50,057
-------------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
SEMICONDUCTORS - 6.4%
140,000 ACT Manufacturing, Inc.* $ 7,831
68,200 Alpha Industries* 6,479
199,000 ATMI, Inc.* 9,502
119,300 MIPS Technologies, Inc., Class A 6,636
34,300 QLogic Corp.* 4,648
-------------
35,096
-------------
SOFTWARE - 12.5%
127,400 Actuate Corp.* 6,856
145,000 BackWeb Technologies Ltd.* 4,984
123,400 Great Plains Software, Inc.* 6,586
134,600 Marimba, Inc.* 5,939
69,100 Mercury Interactive Corp.* 5,476
117,300 Peregrine Systems, Inc.* 7,867
75,542 Register.com, Inc.* 5,250
315,700 Serena Software, Inc.* 10,063
66,800 TIBCO Software, Inc.* 5,444
6,098 ValueClick, Inc.* 128
144,200 Webtrends Corp.* 10,382
-------------
68,975
-------------
TELECOMMUNICATION EQUIPMENT - 18.8%
247,400 CapRock Communications Corp.* 12,123
260,100 C-COR.net Corp.* 12,745
166,000 Clearnet Communications, Inc., Class A* 6,837
72,300 Ditech Communications Corp.* 7,668
116,700 Harmonic, Inc.* 9,715
105,800 Powerwave Technologies, Inc.* 13,225
77,500 Proxim, Inc.* 9,920
337,000 SBA Communications Corp.* 14,827
48,200 SDL, Inc.* 10,261
218,600 Spectrasite Holdings, Inc.* 6,189
-------------
103,510
-------------
TRANSPORTATION - 1.0%
245,800 EGL, Inc.* 5,746
-------------
Total Common Stocks
(cost $497,116) 542,494
-------------
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 2.3%
$ 1,806 Norwest Bank, Grand Cayman,
Eurodollar Time Deposits,
6.313%, 4/3/00 $ 1,806
10,937 UBS A.G., Grand Cayman,
Eurodollar Time Deposits,
6.375%, 4/3/00 10,937
--------
Total Short-Term Investments
(cost $12,743) 12,743
--------
Total Investments - 100.8%
(cost $509,859) 555,237
Liabilities Less Other Assets - (0.8)% (4,626)
--------
NET ASSETS - 100.0% $550,611
========
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
INTERNATIONAL GROWTH EQUITY FUND
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
COMMON STOCKS - 92.2%
FINLAND - 1.5%
25,000 Nokia Oyj ADR $ 5,431
80,000 Sonera-Yhtyma Oyj 5,458
-------------
10,889
-------------
FRANCE - 11.4%
40,000 Alcatel S.A. 8,777
170,000 Aventis S.A. 9,272
67,000 Axa - UAP 9,495
110,000 Banque Nationale de Paris 8,684
30,000 Cap Gemini S.A. 8,124
56,000 Suez Lyonnaise 9,624
225,000 Thomson CSF 9,150
125,000 Total S.A. ADR 9,203
70,000 Vivendi 8,071
-------------
80,400
-------------
GERMANY - 9.5%
23,000 Allianz A.G. 9,365
250,000 Bayer A.G. 11,219
85,000 Deutsche Bank A.G. 5,649
90,000 Deutsche Telekom 7,251
110,000 HypoVereinsbank 6,789
6,000 Intershop Communications A.G.* 3,026
9,500 SAP A.G. 6,841
90,000 SGL Carbon A.G. 6,890
200,000 Veba A.G. 10,220
-------------
67,250
-------------
HONG KONG - 1.5%
3,000,000 Beijing Enterprises Holdings Ltd. 3,602
4,999,000 China Resources Enterprise Ltd. 6,869
-------------
10,471
-------------
ITALY - 4.3%
280,000 Assicurazioni Generali 7,765
625,000 Bulgari S.p.A. 6,914
550,000 Telecom Italia Mobile S.p.A. 6,747
2,200,000 Unicredito Italiano S.p.A. 8,757
-------------
30,183
-------------
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
JAPAN - 28.7%
155,000 Canon, Inc. $ 6,725
125,000 Circle K Japan Co. Ltd. 5,204
1,500 East Japan Railway Co. 7,780
875,000 Fuji Bank Ltd. 8,233
140,000 Fujitsu Ltd. 4,300
460,000 Hitachi Ltd. 5,467
600,000 Kirin Brewery Co. Ltd. 7,348
1,250,000 Komatsu Ltd. 5,947
255,000 Matsushita Electric Industrial Co. 7,633
675,000 Mitsubishi Estate Co. Ltd. 7,325
1,000,000 Mitsui & Co. Ltd. 8,092
1,650,000 Mitsui Marine & Fire Insurance Ltd. 7,432
200,000 NEC Corp. 5,908
650,000 Nikko Securities Co. Ltd. 9,848
40,000 Nintendo Co. Ltd. 7,039
750 Nippon Telegraph & Telephone Corp. 11,920
260,000 Omron Corp. 7,402
300,000 Onward Kashiyama Co. Ltd. 3,627
240,000 Ricoh Co. Ltd. 5,148
12,000 Rohm Co. Ltd. 4,177
385,000 Sankyo Co. Ltd. 9,704
600,000 Sanwa Bank Ltd. 6,248
800,000 Sekisui House Ltd. 7,340
125,000 Shin-Etsu Chemical Co. 7,593
300,000 Shiseido Co. Ltd. 4,080
18,000 Sony Corp. 2,545
18,000 Sony Corp. Bonus Shares* 2,562
350,000 Sumitomo Bank Ltd. 5,221
520,000 Sumitomo Electric Industries Ltd. 7,336
700,000 Takashimaya Co. Ltd. 5,719
150,000 Toyota Motor Corp. 7,854
-------------
202,757
-------------
NETHERLANDS - 7.7%
300,000 Buhrmann N.V. 7,607
35,000 Equant N.V.* 2,977
160,000 ING Groep N.V. 8,666
33,000 Koninklijke (Royal) Philips
Electronics N.V. ADR 5,653
175,000 Royal Dutch Petroleum Co. ADR 10,074
165,000 Unilever N.V. ADR 7,941
100,000 VNU N.V.* 5,890
250,000 Wolters Kluwer N.V. 5,741
-------------
54,549
-------------
<PAGE>
NORTHERN FUNDS Annual Report
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
NORWAY - 1.1%
200,000 Norsk Hydro A.S.A. $ 7,572
-------------
PHILIPPINES - 0.9%
300,000 Philippine Long Distance Telephone Co. 6,565
-------------
PORTUGAL - 0.7%
375,000 Portugal Telecom S.A. 4,808
-------------
SINGAPORE - 0.9%
475,000 DBS Group Holdings Ltd. 6,276
-------------
SOUTH KOREA - 1.6%
350,000 Korea Electric Power Corp. ADR 5,534
200,000 Pohang Iron & Steel Co. ADR 5,500
-------------
11,034
-------------
SPAIN - 1.0%
475,000 Banco Bilbao Vizcaya Argentaria S.A. 6,982
-------------
SWEDEN - 1.7%
315,000 SKF AB 7,000
55,000 Telefonaktiebolaget LM Ericsson AB ADR 5,160
-------------
12,160
-------------
SWITZERLAND - 4.5%
180,000 Carrier1 International S.A. ADR* 3,488
55,000 New ABB Ltd. 6,318
9,500 Novartis A.G. 12,993
800 Roche Holding A.G. 8,689
-------------
31,488
-------------
UNITED KINGDOM - 14.0%
325,000 Barclays PLC 8,617
175,000 BP Amoco PLC ADR 9,286
375,000 British Telecom PLC 7,029
1,000,000 Canary Wharf Group PLC* 5,647
350,000 Carlton Communications PLC 4,246
1,100,000 Diageo PLC 8,265
150,000 Glaxo Wellcome PLC ADR 8,598
150,000 Logica PLC 5,028
1,400,000 Marks & Spencer PLC 5,595
950,000 Reed International PLC 6,937
275,000 Reuters Group PLC 5,580
320,000 Sema Group PLC 6,391
1,700,000 Tesco PLC 5,661
220,000 Vodafone AirTouch PLC ADR 12,225
-------------
99,105
-------------
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
UNITED STATES - 1.2%
115,000 Schlumberger Ltd. ADR $ 8,798
-------------
Total Common Stocks
(cost $606,711) 651,287
-------------
PRINCIPAL
AMOUNT
(000S)
---------
SHORT-TERM INVESTMENT - 7.9%
(cost $55,497)
$55,497 UBS A.G., Grand Cayman
Eurodollar Time Deposits,
6.375%, 4/3/00 55,497
-------------
Total Investments - 100.1%
(cost $662,208) 706,784
Liabilities less Other Assets - (0.1)% (231)
-------------
NET ASSETS - 100.0% $706,553
=============
At March 31, 2000, the International Growth Equity Fund's
investments were diversified as follows:
Industry
Sector
---------------------------------------
Auto 1.2 %
Basic Industries/Energy 6.6
Capital Goods 8.8
Chemicals 2.9
Conglomerates 1.6
Consumer Goods 5.9
Financial Services 19.0
Food 5.1
Media 4.4
Pharmaceuticals 7.5
Real Estate 2.0
Retail 2.5
Support Services 1.2
Technology 13.5
Telecommunications 10.5
Transportation 1.2
Utilities 5.1
Other 1.0
-----------
Total 100.0%
-----------
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
INTERNATIONAL SELECT EQUITY FUND
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
COMMON STOCKS - 92.3%
FINLAND - 1.0%
12,000 Nokia Oyj ADR $ 2,607
-------------
FRANCE - 14.0%
17,000 Alcatel S.A. 3,730
80,013 Aventis S.A. 4,364
35,000 Axa - UAP 4,960
50,000 Banque Nationale de Paris 3,947
14,000 Cap Gemini S.A. 3,792
20,000 Suez Lyonnaise 3,437
90,000 Thomson CSF 3,660
65,000 Total S.A. ADR 4,786
30,000 Vivendi 3,459
-------------
36,135
-------------
GERMANY - 8.4%
11,000 Allianz A.G. 4,479
115,000 Bayer A.G. 5,161
65,000 Bayerische Motoren Werke (BMW) A.G. 4,012
4,000 Intershop Communications A.G.* 2,017
4,000 SAP A.G. 2,880
40,000 SGL Carbon A.G. 3,062
-------------
21,611
-------------
HONG KONG - 2.3%
1,600,000 Beijing Enterprises Holdings Ltd. 1,921
2,900,000 China Resources Enterprises Ltd. 3,985
-------------
5,906
-------------
ITALY - 2.9%
125,000 Assicurazioni Generali 3,466
325,000 Telecom Italia Mobile S.p.A. 3,987
-------------
7,453
-------------
JAPAN - 28.6%
90,000 Canon, Inc. 3,905
100,000 Circle K Japan Co. Ltd. 4,163
375,000 Citizen Watch Co. Ltd. 3,163
450,000 Fuji Bank Ltd. 4,234
80,000 Fujitsu Ltd. 2,457
250,000 Hitachi Ltd. 2,971
300,000 Kirin Brewery Co. Ltd. 3,674
130,000 Matsushita Electric Industrial Co. 3,891
250,000 Mitsubishi Estate Co. Ltd. 2,713
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
550,000 Mitsui & Co. Ltd. $ 4,451
800,000 Mitsui Marine & Fire Insurance Ltd. 3,604
125,000 NEC Corp. 3,692
16,000 Nintendo Co. Ltd. 2,816
300 Nippon Telegraph & Telephone Corp. 4,768
160,000 Sankyo Co. Ltd. 4,033
350,000 Sanwa Bank Ltd. 3,644
400,000 Sekisui House Ltd. 3,670
300,000 Shiseido Co. Ltd. 4,080
315,000 Sumitomo Electric Industries Ltd. 4,444
400,000 Takashimaya Co. Ltd. 3,268
-------------
73,641
-------------
NETHERLANDS - 6.6%
30,000 Equant N.V.* 2,552
85,000 ING Groep N.V. 4,604
70,000 Royal Dutch Petroleum Co. ADR 4,030
55,000 VNU N.V.* 3,239
110,000 Wolters Kluwer N.V. 2,526
-------------
16,951
-------------
PHILIPPINES - 1.1%
125,000 Philippine Long Distance
Telephone Co. 2,735
-------------
PORTUGUESE - 1.2%
250,000 Portugal Telecom S.A. 3,206
-------------
SOUTH KOREA - 2.4%
175,000 Korea Electric Power Corp. ADR 2,767
120,000 Pohang Iron & Steel Co. ADR 3,300
-------------
6,067
-------------
SPAIN - 1.6%
275,000 Banco Bilbao Vizcaya Argentaria S.A. 4,042
-------------
SWEDEN - 0.9%
25,000 Telefonaktiebolaget LM Ericsson AB ADR 2,345
-------------
SWITZERLAND - 5.7%
140,000 Carrier1 International S.A. ADR* 2,713
35,000 New ABB Ltd. 4,021
3,500 Novartis A.G. 4,787
300 Roche Holding A.G. 3,258
-------------
14,779
-------------
See Notes to the Financial Statements.
<PAGE>
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
UNITED KINGDOM - 15.6%
140,000 Barclays PLC $ 3,712
80,000 BP Amoco PLC ADR 4,245
500,000 Canary Wharf Group PLC* 2,824
125,000 Capita Group PLC 3,197
500,000 Diageo PLC 3,757
70,000 Glaxo Wellcome PLC ADR 4,012
450,000 Reed International PLC 3,286
160,000 Reuters Group PLC 3,247
175,000 Sema Group PLC 3,495
600,000 Unilever N.V. 3,845
80,000 Vodafone AirTouch PLC ADR 4,445
-------------
40,065
-------------
Total Common Stocks
(cost $229,848) 237,543
-------------
PRINCIPAL
AMOUNT
(000S)
---------
SHORT-TERM INVESTMENT - 7.1%
(cost $18,169)
$18,169 UBS A.G., Grand Cayman
Eurodollar Time Deposits,
6.375%, 4/3/00 18,169
-------------
Total Investments - 99.4%
(cost $248,017) 255,712
Other Assets less Liabilities - 0.6% 1,500
-------------
NET ASSETS - 100.0% $257,212
=============
c
At March 31, 2000, the International Select Equity Fund's
investments were diversified as follows:
Industry
Sector
------------------------------------
Basic Industries/Energy 6.9%
Capital Goods 7.0
Chemicals 2.2
Conglomerates 2.5
Consumer Goods 5.7
Financial Services 18.8
Food 6.4
Media 5.2
Other 1.3
Pharmaceuticals 8.6
Real Estate 2.3
Retail 3.1
Support Services 1.3
Technology 14.3
Telecommunications 10.3
Utilities 4.1
------
Total 100.0%
======
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS MARCH 31, 2000
TECHNOLOGY FUND
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
COMMON STOCKS - 97.7%
ADVERTISING - 0.2%
60,000 TMP Worldwide, Inc.* $ 4,665
-------------
BIOTECHNOLOGY - 2.2%
165,000 Genentech, Inc.* 25,080
400,000 PE Corp.- PE Biosystems Group 38,600
-------------
63,680
-------------
COMPUTERS - 4.7%
514,400 EMC Corp.* 64,300
140,000 Network Appliance, Inc.* 11,585
627,600 Sun Microsystems, Inc.* 58,808
-------------
134,693
-------------
ELECTRONICS - 3.5%
699,400 Applied Materials, Inc.* 65,918
292,500 Anadigics, Inc.* 19,305
150,000 Vitesse Semiconductor Corp.* 14,437
-------------
99,660
-------------
RETAIL - 0.7%
95,000 eBay, Inc.* 16,720
24,625 Freemarkets, Inc.* 2,980
-------------
19,700
-------------
SEMICONDUCTORS - 30.5%
90,000 Alpha Industries, Inc.* 8,550
330,000 Altera Corp.* 29,453
630,000 Applied Micro Circuits Corp.* 94,539
391,000 Broadcom Corp., Class A* 94,964
455,000 Conexant Systems, Inc.* 32,305
237,500 Cree, Inc.* 26,808
221,352 Infineon Technologies AG ADR* 12,714
325,000 KLA -Tencor Corp.* 27,381
535,000 LAM Research Corp.* 24,108
668,800 LSI Logic Corp.* 48,572
260,000 MMC Networks, Inc.* 8,580
320,400 Motorola, Inc. 45,617
400,000 National Semiconductor Corp.* 24,250
392,000 PMC - Sierra, Inc.* 79,845
213,381 Quantum Effect Devices, Inc.* 16,990
240,000 RF Micro Devices, Inc.* 32,250
350,000 Teradyne, Inc.* 28,788
498,300 Texas Instruments, Inc. 79,728
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
525,000 Transwitch Corp.* $ 49,504
500,000 Triquint Semiconductor, Inc.* 36,750
818,400 Xilinx, Inc.* 67,774
-------------
869,470
-------------
SOFTWARE & SERVICES - 25.6%
74,000 724 Solutions, Inc.* 9,213
120,688 Agile Software Corp.* 7,543
53,375 Akamai Technologies, Inc.* 8,583
450,000 America Online, Inc.* 30,263
164,340 Ariba, Inc.* 34,450
154,546 Backweb Technologies Ltd.* 5,313
280,000 Bea Systems, Inc.* 20,545
450,000 Broadvision, Inc.* 20,194
115,000 Cacheflow, Inc.* 13,627
140,000 Check Point Software Technologies Ltd.* 23,949
162,500 Digex, Inc.* 18,027
640,000 Exodus Communications, Inc.* 89,920
128,793 Homestore.com, Inc.* 6,279
176,000 I2 Technologies, Inc.* 21,494
100,000 Inktomi Corp.* 19,500
290,000 Microsoft Corp.* 30,812
120,107 Niku Corp.* 5,683
1,025,240 Oracle Corp.* 80,033
650,000 Peregrine Systems, Inc.* 43,591
230,000 Realnetworks, Inc.* 13,096
360,412 Siebel Systems, Inc.* 43,047
407,400 TIBCO Software, Inc.* 33,203
150,000 Verisign, Inc.* 22,425
307,500 Veritas Software Corp.* 40,282
170,000 Vignette Corp.* 27,242
46,590 Webmethods, Inc.* 11,246
277,200 Yahoo!, Inc.* 47,505
-------------
727,065
-------------
TELECOMMUNICATION
EQUIPMENT - 25.5%
386,000 3Com Corp.* 21,471
47,000 Avanex Corp.* 7,132
590,000 Brocade Communications Systems* 105,794
963,972 Cisco Systems, Inc.* 74,527
110,000 Ciena Corp.* 13,874
152,200 Corning, Inc. 29,527
176,951 Flag Telecom Holdings Ltd.* 4,004
309,510 Foundry Networks, Inc.* 44,492
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Annual Report
NUMBER VALUE
OF SHARES (000S)
-------------------------------------------------------------------------------
800,000 JDS Uniphase Corp.* $ 96,450
211,305 Juniper Networks, Inc.* 55,692
183,000 Metromedia Fiber Network, Class A* 17,694
159,631 Next Level Communication, Inc.* 17,360
148,000 Nokia Corp. ADR 32,153
550,800 Nortel Networks Corp. 69,401
58,536 Palm, Inc.* 2,627
278,000 SDL, Inc.* 59,179
431,267 Sycamore Networks, Inc.* 55,633
331,700 Williams Communications Group* 17,186
-------------
724,196
-------------
TELECOMMUNICATIONS - 4.8%
168,399 Alamosa PCS Holdings, Inc.* 6,357
537,887 Carrier 1 International S.A. ADR* 10,422
188,265 KPNQwest N.V.* 10,213
160,000 Leap Wireless International, Inc.* 15,790
324,200 McLeodUSA, Inc., Class A* 27,496
132,000 Nextlink Communications, Class A* 16,327
235,000 Nextel Communications, Inc., Class A* 34,839
492,681 Nextel Partners, Inc., Class A* 14,288
-------------
135,732
-------------
Total Common Stocks
(cost $1,855,017) 2,778,861
-------------
PRICIPAL
AMOUNT VALUE
(000S) (000S)
-------------------------------------------------------------------------------
SHORT-TERM INVESTMENT - 2.7%
(cost $75,691)
$ 75,691 UBS A.G., Grand Cayman,
Eurodollar Time Deposits,
6.375%, 4/1/00 $ 75,691
-------------
Total Investments - 100.4%
(cost $1,930,708) 2,854,552
Liabilities less Other Assets - (0.4)% (11,802)
-------------
NET ASSETS - 100.0% $2,842,750
=============
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, California Municipal Money Market, U.S.
Government, Short-Intermediate U.S. Government, Intermediate Tax-Exempt,
California Intermediate Tax-Exempt, Florida Intermediate Tax-Exempt, Fixed
Income, Tax-Exempt, Arizona Tax-Exempt, California Tax-Exempt, International
Fixed Income, High Yield Municipal, High Yield Fixed Income, Income Equity,
Stock Index, Growth Equity, Select Equity, Mid Cap Growth, Small Cap Index,
Small Cap, Small Cap Growth, International Growth Equity, International Select
Equity and Technology Funds (collectively the "Funds") are separate, diversified
investment portfolios of the Trust, except for the California Municipal Money
Market, California Intermediate Tax-Exempt, Florida Intermediate Tax-Exempt,
Arizona Tax-Exempt, California Tax-Exempt and International Fixed Income Funds,
which are non-diversified portfolios 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 except as noted in the next sentence. Northern
Trust Quantitative Advisors, Inc., ("NTQA") a wholly-owned subsidiary of
Northern Trust Corporation, is the investment adviser for the Stock Index, Small
Cap Index and Small Cap 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. Securities which
are traded on a recognized U.S. or foreign securities exchange are generally
valued at the last quoted sales price on the securities exchange on which
the securities are primarily traded. If securities traded on a foreign
securities exchange are not traded on a valuation date, they will be valued
at the most recent quoted sales price. Securities that are traded in the
U.S. over-the-counter markets, absent a last quoted sales price, are valued
at the last quoted bid price. Securities which are traded in the foreign
over-the-counter markets are generally valued at the last sales price.
Insurance funding agreements are valued at cost plus accrued interest, which
approximates market value. Any securities for which no current quotations
are readily available are valued at fair value as determined in good faith
by the Adviser under the supervision of the Board of Trustees.
B. REPURCHASE AGREEMENTS - During the term of a repurchase agreement, the
market value of the underlying collateral, including accrued interest, is
required to equal or exceed the market value of the repurchase agreement.
The underlying collateral for all repurchase agreements is held in a
customer-only account of Northern Trust, as custodian for the Funds, at the
Federal Reserve Bank of Chicago.
C. FUTURES CONTRACTS - Certain Funds may enter into long financial futures
contracts to maintain liquidity or short financial futures contracts for
hedging purposes. These Funds may also enter into futures contracts for
speculative purposes. Futures contracts are valued based upon their quoted
daily settlement prices; changes in initial settlement value are accounted
for as unrealized appreciation (depreciation) until the contracts are
terminated at which time realized gains and losses are recognized.
A Fund bears the market risk arising from changes in the value of these
financial instruments. At the time a Fund enters into a futures contract, it
is required to make a margin deposit in a segregated account of a specified
amount of cash or eligible securities. Subsequently, as the market price of
the futures contract fluctuates, gains and losses are recognized and
payments are made on a daily basis between the Fund and the broker. The
Statements of Operations reflect gains and losses as realized for closed
futures contracts and
<PAGE>
NORTHERN FUNDS Annual Report
as unrealized for open contracts. At March 31, 2000, the Stock Index, Small
Cap Index and Small Cap Funds had entered into exchange-traded long futures
contracts and the aggregate market value of securities pledged to cover
margin requirements for open positions was approximately $936,000, $531,000
and $900,000, respectively.
D. STRIPPED SECURITIES - Stripped securities represent the right to receive
future interest payments (interest only stripped securities) or principal
payments (principal only stripped securities). The value of variable rate
interest only stripped securities varies directly with changes in interest
rates, while the value of fixed rate interest only stripped securities and
the value of principal only stripped securities vary inversely with changes
in interest rates.
E. FOREIGN CURRENCY TRANSLATIONS - Values of investments denominated in foreign
currencies are converted into U.S. dollars using the spot market rate of
exchange at the time of valuation. Purchases and sales of investments,
interest and dividend income are translated into U.S. dollars using the spot
market rate of exchange prevailing on the respective dates of such
transactions. The gains or losses on investments resulting from changes in
foreign exchange rates are included with net realized and unrealized gains
(losses) on investments.
F. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS - Certain Funds are authorized
to enter into forward foreign currency exchange contracts for the purchase
or sale of a specific foreign currency at a fixed price on a future date as
a hedge against either specific transactions or portfolio positions, or as a
cross-hedge transaction or for speculative purposes. The objective of a
Fund's foreign currency hedging transactions is to reduce the risk that the
U.S. dollar value of a Fund's foreign currency denominated securities will
decline in value due to changes in foreign currency exchange rates. All
forward foreign currency contracts are "marked-to-market" daily at the
applicable translation rates and any resulting unrealized gains or losses
are recorded in a Fund's financial statements. A Fund records realized gains
or losses at the time the forward contract is offset by entering into a
closing transaction or extinguished by delivery of the currency. Risks may
arise upon entering into these contracts from the potential inability of
counterparties to meet the terms of their contracts and from unanticipated
movements in the value of a foreign currency relative to the U.S. dollar.
The contractual amounts of forward foreign currency exchange contracts do
not necessarily represent the amounts potentially subject to risk. The
measurement of the risks associated with these instruments is meaningful
only when all related and offsetting transactions are considered.
At March 31, 2000, the International Select Equity Fund had outstanding
contracts as follows:
Contract Contract Unrealized
Contract Position Amount in U.S. $ Gain/(Loss)
Type Currency (000s) (000s) (000s)
-------------------------------------------------------------------------------
Buy Japanese Yen $42,368 $2,744 $11
Sell Euro 2,888 402 (20)
-----
$(9)
=====
G. INVESTMENT TRANSACTIONS AND INCOME - Investment transactions are recorded as
of the trade date. The Funds determine the gain or loss realized from
investment transactions by using an identified cost basis method. Dividend
income is recognized on the ex-dividend date and interest income is
recognized on an accrual basis and includes amortization of discounts and
premiums. Dividends from foreign securities are recorded on ex-date, or as
soon as the information is available.
H. EXPENSES - The Funds are charged for those expenses that are directly
attributable to each Fund. Expenses that are not directly attributable to a
Fund are typically allocated among the Funds in proportion to their
respective net assets.
I. DISTRIBUTIONS TO SHAREHOLDERS - Dividends from net investment income are
declared and paid as follows:
DECLARATION PAYMENT
FREQUENCY FREQUENCY
--------------------------------------------------------------------------------
Money Market Daily Monthly
U.S. Government Money Market Daily Monthly
U.S. Government Select Money Market Daily Monthly
Municipal Money Market Daily Monthly
California Municipal Money Market Daily Monthly
U.S. Government Daily Monthly
Short-Intermediate U.S. Government Daily Monthly
Intermediate Tax-Exempt Daily Monthly
California Intermediate Tax-Exempt Daily Monthly
Florida Intermediate Tax-Exempt Daily Monthly
Fixed Income Daily Monthly
Tax-Exempt Daily Monthly
Arizona Tax-Exempt Daily Monthly
California Tax-Exempt Daily Monthly
International Fixed Income Quarterly Quarterly
High Yield Municipal Daily Monthly
High Yield Fixed Income Daily Monthly
Income Equity Monthly Monthly
<PAGE>
I. DISTRIBUTIONS TO SHAREHOLDERS (CONT'D)
DECLARATION PAYMENT
FREQUENCY FREQUENCY
--------------------------------------------------------------------------------
Stock Index Quarterly Quarterly
Growth Equity Quarterly Quarterly
Select Equity Annually Annually
Mid Cap Growth Quarterly Quarterly
Small Cap Index Annually Annually
Small Cap Annually Annually
Small Cap Growth Annually Annually
International Growth Equity Annually Annually
International Select Equity Annually Annually
Technology Annually Annually
--------------------------------------------------------------------------------
Distributions of net realized capital gains, if any, are declared at
least annually. Distributions to shareholders are recorded on the ex-
dividend date.
The timing and character of distributions determined in accordance with
federal income tax regulations may differ from financial statement amounts
determined in accordance with 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, California
Municipal Money Market, Intermediate Tax-Exempt, Florida Intermediate Tax-
Exempt, California Intermediate Tax-Exempt, Tax-Exempt, Arizona Tax-Exempt,
California Tax-Exempt and High Yield Municipal 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,
California Intermediate Tax-Exempt and California Tax-Exempt Funds were
"California exempt-interest dividends," exempt from California state
personal income tax.
J. FEDERAL INCOME TAXES - No provision for federal income taxes has been made
since the Funds intend to comply with the requirements of the Internal
Revenue Code available to regulated investment companies and to distribute
substantially all of their taxable income to their shareholders.
3. INVESTMENT ADVISORY AND OTHER AGREEMENTS
Pursuant to its advisory agreement with the Funds, the Adviser (or NTQA with
respect to certain Funds) 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 or NTQA
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%
U.S. Government 0.75% 0.75% 0.90%
Short-Intermediate U.S. Government 0.75% 0.75% 0.90%
Intermediate Tax-Exempt 0.75% 0.70% 0.85%
California Intermediate Tax-Exempt 0.75% 0.70% 0.85%
Florida Intermediate Tax-Exempt 0.75% 0.70% 0.85%
Fixed Income 0.75% 0.75% 0.90%
Tax-Exempt 0.75% 0.70% 0.85%
Arizona Tax-Exempt 0.75% 0.70% 0.85%
California Tax-Exempt 0.75% 0.70% 0.85%
International Fixed Income 0.90% 0.90% 1.15%
High Yield Municipal 0.75% 0.70% 0.85%
High Yield Fixed Income 0.75% 0.75% 0.90%
Income Equity 1.00% 0.85% 1.00%
Stock Index 0.60% 0.40% 0.55%
Growth Equity 1.00% 0.85% 1.00%
Select Equity 1.20% 0.85% 1.00%
Mid Cap Growth 1.00% 0.85% 1.00%
Small Cap Index 0.65% 0.50% 0.65%
Small Cap 1.20% 0.85% 1.00%
Small Cap Growth 1.20% 1.00% 1.25%
International Growth Equity 1.20% 1.00% 1.25%
International Select Equity 1.20% 1.00% 1.25%
Technology 1.20% 1.00% 1.25%
--------------------------------------------------------------------------------
<PAGE>
NORTHERN FUNDS Annual Report
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.
Interest expense for the year ended March 31, 2000 was approximately $5,000,
$1,000 and $12,000 for the Stock Index, the Growth Equity and SmallCap Index
Fund, respectively. This amount is included in other expenses on the Statements
of Operations.
As of March 31, 2000, there were no outstanding borrowings.
5. INVESTMENT TRANSACTIONS
The aggregate purchases and sales of securities, excluding short-term
investments, for the Funds for the year ended March 31, 2000 were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
-----------------------------------------------------------------------
U.S. U.S.
AMOUNTS IN THOUSANDS GOVERNMENT OTHER GOVERNMENT OTHER
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Government $188,207 $- $88,188 $-
Short-Intermediate U.S. Government 81,080 - 24,417 -
Intermediate Tax-Exempt - 685,661 - 330,963
California Intermediate Tax-Exempt - 118,208 - 27,594
Florida Intermediate Tax-Exempt - 54,240 - 48,671
Fixed Income 404,106 426,939 241,537 213,753
Tax-Exempt - 731,282 - 407,031
Arizona Tax-Exempt - 83,569 - 17,350
California Tax-Exempt - 113,274 - 64,558
International Fixed Income 1,278 14,930 1,256 13,046
High Yield Municipal - 15,991 - 3,148
High Yield Fixed Income - 202,437 - 78,692
Income Equity - 264,152 - 208,519
Stock Index - 205,981 - 42,124
Growth Equity - 1,043,158 - 813,296
Select Equity - 606,067 - 456,952
Mid Cap Growth - 1,012,183 - 534,063
Small Cap Index - 151,911 - 70,807
Small Cap - 73,215 - 208,520
Small Cap Growth - 780,163 - 342,308
International Growth Equity - 940,970 - 619,746
International Select Equity - 311,495 - 237,005
Technology - 2,838,417 - 1,824,312
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
At March 31, 2000, for federal tax purposes, gross unrealized appreciation,
gross unrealized depreciation, net unrealized appreciation (depreciation) on
investments (including the effects of foreign currency translation) and the cost
basis of securities were as follows:
<TABLE>
-----------------------------------------------------------------------------------------------------------------------------
NET COST
UNREALIZED UNREALIZED APPRECIATION BASIS OF
AMOUNTS IN THOUSANDS APPRECIATION DEPRECIATION (DEPRECIATION) SECURITIES
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Government $159 $(11,647) $(11,488) $358,171
Short-Intermediate U.S. Government 35 (1,166) (1,131) 64,065
Intermediate Tax-Exempt 4,754 (13,461) (8,707) 679,362
California Intermediate Tax-Exempt 1,687 (833) 854 91,915
Florida Intermediate Tax-Exempt 331 (549) (218) 44,979
Fixed Income 3,656 (22,904) (19,248) 644,096
Tax-Exempt 16,227 (9,848) 6,379 511,399
Arizona Tax-Exempt 987 (780) 207 66,209
California Tax-Exempt 1,993 (3,536) (1,543) 123,394
International Fixed Income 248 (547) (299) 15,235
High Yield Municipal 34 (1,311) (1,277) 22,567
High Yield Fixed Income 847 (6,967) (6,120) 165,911
Income Equity 41,003 (5,785) 35,218 182,807
Stock Index 239,250 (17,170) 222,080 323,053
Growth Equity 488,134 (26,823) 461,311 885,391
Select Equity 165,774 (3,974) 161,800 352,362
Mid Cap Growth 254,217 (49,040) 205,177 653,139
Small Cap Index 36,668 (19,315) 17,353 95,987
Small Cap 51,534 (35,037) 16,497 183,099
Small Cap Growth 76,499 (31,846) 44,653 510,584
International Growth Equity 74,947 (30,858) 44,089 662,695
International Select Equity 22,764 (15,069) 7,695 248,017
Technology 1,017,372 (94,517) 922,855 1,931,697
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
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
U.S. Government - 1,813
Short-Intermediate U.S. Government - 67
Intermediate Tax-Exempt - 800
Florida Intermediate Tax-Exempt - 203
Fixed Income - 433
Tax-Exempt - 4,366
California Tax-Exempt - 403
International Fixed Income - 15
High Yield Municipal - 131
High Yield Fixed Income - 2,519
Mid Cap Growth $4,222 -
-------------------------------------------------------------------------------
These capital loss carryforwards are available to offset future capital gains.
<PAGE>
NORTHERN FUNDS Annual Report
6. CAPITAL SHARE TRANSACTIONS
Transactions of shares of the Funds for the year ended March 31, 2000 were as
follows:
<TABLE>
<CAPTION>
NET
ISSUED UPON REINVESTMENT INCREASE
AMOUNTS IN THOUSANDS SOLD CONVERSION<F1> OF DIVIDENDS REDEEMED (DECREASE)
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
U.S. Government 17,301 11,422 176 (19,710) 9,189
Short-Intermediate U.S. Government 1,217 6,034 2 (837) 6,416
Intermediate Tax-Exempt 45,944 36,215 182 (47,197) 35,144
California Intermediate Tax-Exempt 2,924 7,986 11 (1,692) 9,229
Florida Intermediate Tax-Exempt 2,005 - 39 (1,418) 626
Fixed Income 17,565 30,234 457 (8,487) 39,769
Tax-Exempt 8,098 32,683 168 (10,117) 30,832
Arizona Tax-Exempt 3,104 5,621 2 (2,112) 6,615
California Tax-Exempt 3,253 5,865 85 (4,270) 4,933
International Fixed Income 522 567 4 (469) 624
High Yield Municipal 1,711 - 5 (375) 1,341
High Yield Fixed Income 16,278 - 141 2,664 13,755
Income Equity 10,786 9,504 700 (14,811) 6,179
Stock Index 6,901 14,818 104 (4,411) 17,412
Growth Equity 6,719 21,398 3,413 (7,163) 24,367
Select Equity 8,853 - 345 (3,085) 6,113
Mid Cap Growth 31,157 - 106 (2,550) 28,713
Small Cap Index 304 14,297 134 (5,372) 9,363
Small Cap 5,525 - 1,272 (14,574) (7,779)
Small Cap Growth 29,574 - 40 (944) 28,670
International Growth Equity 19,413 14,322 2,946 (4,496) 32,185
International Select Equity 8,667 - 1,447 (2,038) 8,076
Technology 23,613 10,530 2,936 (5,342) 31,737
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> See footnote 7.
Transactions of shares of the Funds for the year ended March 31, 1999 were as
follows:
<TABLE>
<CAPTION>
NET
REINVESTMENT INCREASE
AMOUNTS IN THOUSANDS SOLD OF DIVIDENDS REDEEMED (DECREASE)
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Government 8,963 718 5,473 4,208
Intermediate Tax-Exempt 6,757 391 2,665 4,483
Florida Intermediate Tax-Exempt 1,769 55 700 1,124
Fixed Income 21,526 727 12,591 9,662
Tax-Exempt 10,243 433 4,815 5,861
California Tax-Exempt 4,589 98 1,303 3,384
International Fixed Income 219 17 248 (12)
High Yield Municipal 1,024 - 22 1,002
High Yield Fixed Income 4,057 6 19 4,044
Income Equity 1,957 474 1,648 783
Stock Index 6,696 104 3,298 3,502
Growth Equity 5,911 1,437 3,895 3,453
Select Equity 3,384 327 1,806 1,905
Mid Cap Growth 6,928 - 328 6,600
Small Cap 7,288 803 8,617 (526)
International Growth Equity 8,329 613 7,068 1,874
International Select Equity 4,499 381 4,684 196
Technology 7,041 193 1,873 5,361
-----------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
7. CONVERSION FROM NORTHERN COMMON TRUST FUNDS
On September 3, 1999 and October 1, 1999, Northern Trust converted six
equity and ten fixed income common trust funds, respectively, into existing
or new comparable funds of the Trust. These conversions were tax-free for
federal income tax purposes. The following is a summary of the net assets
and shares converted (amounts in thousands):
<TABLE>
<CAPTION>
NORTHERN NET ASSETS SHARES
COMMON TRUST FUND FUND CONVERTED CONVERTED
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
September 3, 1999 Conversion:
Income Equity Fund Income Equity Fund $123,163 9,504
Market Equity Fund Stock Index Fund 271,446 14,818
Growth Equity Fund Growth Equity Fund 458,132 21,398
Small Capitalization Fund Small Cap Index Fund<F1> 142,973 14,297
Global Growth Fund International Growth Equity Fund 191,041 14,322
Focused Growth Technology Fund Technology Fund 359,270 10,530
October 1, 1999 Conversion:
1986 Government Bond Fund and
Government Bond Fund U.S. Government Fund $112,138 11,422
Intermediate Government Bond Fund Short-Intermediate U.S. Government Fund<F1> 60,337 6,034
Intermediate Tax-Exempt Bond Fund Intermediate Tax-Exempt Fund 363,331 36,215
Intermediate California Tax-Exempt
Bond Fund California Intermediate Tax-Exempt Fund<F1> 79,836 7,986
Taxable Bond Fund Fixed Income Fund 293,695 30,234
Tax-Exempt Bond Fund Tax-Exempt Fund 327,321 32,683
Arizona Tax-Exempt Bond Fund Arizona Tax-Exempt Fund<F1> 56,205 5,621
California Tax-Exempt Bond Fund California Tax-Exempt Fund 60,293 5,865
International Government Bond Fund International Fixed Income Fund 5,714 567
</TABLE>
<F1> Fund commenced operations upon conversion
8. SUBSEQUENT EVENTS
On May 1, 2000, NTQA changed its name to Northern Trust Investment, Inc.
("NTI").
Effective May 2, 2000, the Small Cap Fund changed its name to Small Cap Value
Fund.
On May 15, 2000, the Global Communications Fund commenced investment operations.
<PAGE>
NORTHERN FUNDS Annual Report
REPORT OF INDEPENDENT
PUBLIC ACCOUNTANTS
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES:
NORTHERN FUNDS
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, California Municipal Money Market Fund, U.S.
Government Fund, Short-Intermediate U.S. Government Fund, Intermediate Tax-
Exempt Fund, California Intermediate Tax-Exempt Fund, Florida Intermediate Tax-
Exempt Fund, Fixed Income Fund, Tax-Exempt Fund, Arizona Tax-Exempt Fund,
California Tax-Exempt Fund, International Fixed Income Fund, High Yield
Municipal Fund, High Yield Fixed Income Fund, Income Equity Fund, Stock Index
Fund, Growth Equity Fund, Select Equity Fund, Mid Cap Growth Fund, Small Cap
Index Fund, Small Cap Fund, Small Cap Growth Fund, International Growth Equity
Fund, International Select Equity Fund and Technology 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>
-------------------------------------------------
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 all 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 all 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
U.S. Government 34,500,335 234 34,174
Short-Intermediate U.S. Government 6,051,177 - -
Intermediate Tax-Exempt 66,116,770 62,469 20,252
California Intermediate Tax-Exempt 9,323,908 - -
Florida Intermediate Tax-Exempt 3,213,380 19,314 15,485
Fixed Income 62,046,984 980 16,848
Tax-Exempt 50,367,708 28,537 1,778
Arizona Tax Exempt 5,546,153 - -
California Tax Exempt 10,479,663 - -
International Fixed Income 1,842,823 1,025 687
High Yield Municipal 2,079,272 - -
High Yield Fixed Income 13,472,242 1,090 4,175
Income Equity 15,399,775 11,341 20,889
Stock Index 23,230,191 42,847 48,188
Growth Equity 47,267,183 54,880 42,062
Select Equity 7,392,521 41,678 44,516
Mid Cap Growth 25,138,321 25,983 15,392
Small Cap Index 10,826,430 272 -
Small Cap 14,344,596 74,302 4,498
Small Cap Growth 15,527,205 4,422 1,232
International Growth Equity 42,730,330 61,329 13,332
International Select Equity 14,303,691 30,135 2,079
Technology 27,837,801 141,015 94,883
--------------------------------------------------------------------------------
<PAGE>
NORTHERN FUNDS Annual Report
(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
U.S. Government 34,487,709 9,740 37,293
Short-Intermediate U.S. Government 6,051,177 - -
Intermediate Tax-Exempt 66,120,529 48,910 30,052
California Intermediate Tax-Exempt 9,323,908 - -
Florida Intermediate Tax-Exempt 3,213,380 19,314 15,485
Fixed Income 62,029,400 20,490 14,922
Tax-Exempt 50,350,856 36,384 10,783
Arizona Tax Exempt 5,546,153 - -
California Tax Exempt 10,479,663 - -
International Fixed Income 1,841,306 1,025 2,204
High Yield Municipal 2,075,971 3,300 -
High Yield Fixed Income 13,469,325 4,007 4,175
Income Equity 15,391,006 16,935 24,064
Stock Index 23,252,078 19,928 49,220
Growth Equity 47,236,107 78,105 49,913
Select Equity 7,352,381 74,263 52,071
Mid Cap Growth 25,133,020 26,872 19,805
Small Cap Index 10,824,254 2,449 -
Small Cap 14,380,826 36,069 6,501
Small Cap Growth 15,525,787 5,112 1,960
International Growth Equity 42,766,332 31,340 7,320
International Select Equity 14,320,826 11,356 3,723
Technology 27,789,596 175,372 108,731
--------------------------------------------------------------------------------
(A) A new investment policy on commodities was approved by each of the Funds
listed below (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
U.S. Government 34,430,821 22,950 80,972
Short-Intermediate U.S. Government 6,051,177 - -
Intermediate Tax-Exempt 66,107,332 61,293 30,866
California Intermediate Tax-Exempt 9,323,908 - -
Florida Intermediate Tax-Exempt 3,200,808 - 47,371
Fixed Income 62,042,849 6,100 15,863
Tax-Exempt 50,369,077 27,167 1,778
Arizona Tax Exempt 5,546,153 - -
California Tax Exempt 10,479,663 - -
International Fixed Income 1,842,823 1,025 687
High Yield Municipal 2,079,011 - 260
High Yield Fixed Income 13,461,144 4,007 12,356
<PAGE>
(A) A new investment policy on commodities was approved by each of the Funds
listed below (voting separately on a Fund-by-Fund basis) as follows: (cont'd.)
FUND VOTES FOR VOTES AGAINST ABSTAINED
--------------------------------------------------------------------------------
Income Equity 15,382,142 9,936 39,927
Stock Index 23,226,989 17,304 76,933
Growth Equity 47,218,967 64,333 80,825
Select Equity 7,331,842 58,866 88,007
Mid Cap Growth 25,123,436 31,513 24,748
Small Cap Index 10,823,464 663 2,576
Small Cap 14,380,664 31,760 10,972
Small Cap Growth 15,522,423 5,627 4,810
International Growth Equity 42,743,440 31,297 30,255
International Select Equity 14,320,327 11,020 4,558
Technology 27,758,071 154,971 160,657
--------------------------------------------------------------------------------
(B) New investment policies on borrowing and lending were approved by each of
the Funds listed below (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
U.S. Government 34,432,612 22,950 79,181
Short-Intermediate U.S. Government 6,051,177 - -
Intermediate Tax-Exempt 66,108,473 61,293 29,726
California Intermediate Tax-Exempt 9,323,908 - -
Florida Intermediate Tax-Exempt 3,181,494 19,314 47,371
Fixed Income 62,039,341 9,608 15,863
Tax-Exempt 50,369,077 27,167 1,778
Arizona Tax Exempt 5,546,153 - -
California Tax Exempt 10,479,663 - -
International Fixed Income 1,842,823 1,025 687
High Yield Municipal 2,079,011 - 260
High Yield Fixed Income 13,464,061 1,090 12,356
Income Equity 15,376,236 13,461 42,308
Stock Index 23,223,634 18,572 79,020
Growth Equity 47,226,857 68,869 68,399
Select Equity 7,328,599 76,470 73,646
Mid Cap Growth 25,126,599 26,971 26,126
Small Cap Index 10,823,855 272 2,576
Small Cap 14,380,173 29,460 13,763
Small Cap Growth 15,521,713 6,337 4,810
International Growth Equity 42,743,815 40,960 20,216
International Select Equity 14,319,592 12,902 3,412
Technology 27,769,155 161,558 142,987
--------------------------------------------------------------------------------
<PAGE>
NORTHERN FUNDS Annual Report
(C) A new investment policy on issuer diversification was approved by each
of the Funds listed below (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
U.S. Government 34,432,134 22,156 80,453
Short-Intermediate U.S. Government 6,051,177 - -
Intermediate Tax-Exempt 66,122,205 56,263 21,023
California Intermediate Tax-Exempt 9,323,908 - -
Florida Intermediate Tax-Exempt 3,181,494 19,314 47,371
Fixed Income 62,042,485 5,938 16,389
Tax-Exempt 50,369,077 27,167 1,778
Arizona Tax Exempt 5,546,153 - -
California Tax Exempt 10,479,663 - -
International Fixed Income 1,842,823 1,025 687
High Yield Municipal 2,079,011 - 260
High Yield Fixed Income 13,464,061 1,090 12,356
Income Equity 15,382,937 9,141 39,927
Stock Index 23,235,476 12,629 73,121
Growth Equity 47,239,271 48,679 76,175
Select Equity 7,350,363 56,035 72,317
Mid Cap Growth 25,133,555 21,715 24,427
Small Cap Index 10,823,855 272 2,576
Small Cap 14,394,105 16,817 12,474
Small Cap Growth 15,521,713 6,337 4,810
International Growth Equity 42,764,404 20,621 19,967
International Select Equity 14,320,250 12,243 3,412
Technology 27,822,933 110,531 140,236
--------------------------------------------------------------------------------
(D) An amendment to eliminate the investment policy on mortgaging was
approved by each of the Funds listed below (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
U.S. Government 34,430,949 22,822 80,972
Short-Intermediate U.S. Government 6,051,177 - -
Intermediate Tax-Exempt 66,122,205 56,263 21,023
California Intermediate Tax-Exempt 9,323,908 - -
Florida Intermediate Tax-Exempt 3,181,494 19,314 47,371
Fixed Income 62,038,815 9,608 16,389
Tax-Exempt 50,369,077 27,167 1,778
Arizona Tax Exempt 5,546,153 - -
California Tax Exempt 10,479,663 - -
International Fixed Income 1,842,823 1,025 687
High Yield Municipal 2,079,011 - 260
High Yield Fixed Income 13,464,706 - 12,801
<PAGE>
(D) An amendment to eliminate the investment policy on mortgaging was
approved by each of the Funds listed below (voting separately on a Fund-by-Fund
basis) as follows: (cont'd.)
FUND VOTES FOR VOTES AGAINST ABSTAINED
--------------------------------------------------------------------------------
Income Equity 15,373,175 16,523 42,307
Stock Index 23,215,715 26,958 78,553
Growth Equity 47,218,321 61,616 84,188
Select Equity 7,331,506 66,893 80,316
Mid Cap Growth 25,122,586 26,624 30,486
Small Cap Index 10,823,855 272 2,576
Small Cap 14,380,112 29,094 14,190
Small Cap Growth 15,522,403 5,647 4,810
International Growth Equity 42,744,814 38,680 21,497
International Select Equity 14,320,877 11,617 3,412
Technology 27,765,032 163,747 144,920
--------------------------------------------------------------------------------
(E) With respect to all Funds except the Short-Intermediate U.S. Government,
California Intermediate Tax-Exempt, Arizona Tax-Exempt, High Yield Municipal,
High Yield Fixed Income, Small Cap Index and Small Cap Growth Funds, the
elimination of investment policy on puts and calls was approved by each of the
Funds listed below (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
U.S. Government 34,432,512 22,950 79,280
Intermediate Tax-Exempt 66,103,659 64,966 30,866
Florida Intermediate Tax-Exempt 3,181,494 19,314 47,371
Fixed Income 62,038,159 10,662 15,991
Tax-Exempt 50,335,517 60,728 1,778
California Tax Exempt 10,479,663 - -
International Fixed Income 1,842,823 1,025 687
Income Equity 15,383,785 8,294 39,926
Stock Index 23,220,402 21,402 79,422
Growth Equity 47,215,857 57,593 90,675
Select Equity 7,290,150 53,835 134,730
Mid Cap Growth 25,128,257 27,620 23,820
Small Cap 14,385,451 23,772 14,173
International Growth Equity 42,752,305 32,536 20,151
International Select Equity 14,326,197 5,289 4,420
Technology 27,746,284 139,172 188,243
--------------------------------------------------------------------------------
<PAGE>
NORTHERN FUNDS Annual Report
(F) With respect to the Intermediate Tax-Exempt, California Intermediate Tax-
Exempt, Florida Intermediate Tax-Exempt, Tax Exempt, Arizona Tax-Exempt,
California Tax-Exempt, High Yield Municipal, Municipal Money Market, and
California Municipal Money Market Funds, a new investment policy on municipal
investments was approved by each of the Funds listed below (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
Intermediate Tax-Exempt 66,145,858 42,589 11,045
California Intermediate Tax-Exempt 9,323,908 - -
Florida Intermediate Tax-Exempt 3,225,472 - 22,707
Tax-Exempt 50,369,077 27,167 1,778
Arizona Tax Exempt 5,546,153 - -
California Tax Exempt 10,479,663 - -
High Yield Municipal 2,079,011 - 260
--------------------------------------------------------------------------------
<PAGE>
This page intentionally left blank.
(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.
NF ANR 500
(logo)
NORTHERN FUNDS
P.O. Box 75986
Chicago, IL 60675-5986
(800) 595-9111
www.northernfunds.com
