NORTHERN FIXED INCOME INDEX FUNDS

NORTHERN FIXED INCOME INDEX FUNDS ANNUAL REPORT MARCH 31, 2017 MANAGED BY

A MESSAGE FROM BOB BROWNE CHIEF INVESTMENT OFFICER The 12-month period ended March 31, 2017 (the Period ), brought a wide dispersion of returns within the bond market. Even as credit-sensitive asset categories produced gains highlighted by a double-digit return for high-yield bonds more rate-sensitive segments of the market came under significant pressure. The evolving outlook for economic growth was the primary reason for this divergence. When the Period began, investors were fixated on the recent sharp drop in commodity prices, and its negative signal with regard to the world economy. As the Period progressed, however, the markets grew increasingly optimistic about the prospects for global growth. Central banks overseas took aggressive steps to spur growth in early 2016, leading to a rebound in commodities and improving economic data around the globe. Growth expectations were further boosted by the results of the November 2016 U.S. election, when the Republican party sweep raised hopes for lower taxes, higher infrastructure spending and a relaxation of federal government regulations. The improvement in growth and the rebound in commodities also contributed to an uptick in inflation, which represented a major departure from previous deflationary concerns that had cropped up at various points since the 2008 financial crisis. These developments prompted the U.S. Federal Reserve to move off of its longstanding policy of holding shortterm rates near zero. The U.S. Federal Reserve increased rates by a quarter point in December 2016 and again in March 2017, bringing the benchmark fed funds rate to a range of.75% to 1.00%. As of March 31, 2017 the consensus expectation was that the U.S. Federal Reserve would continue to raise rates gradually until it had achieved a normalized policy stance (i.e., one consistent with the level of growth and inflation). These circumstances acted as a headwind to U.S. Treasuries due to their above-average interest-rate risk. Yields rose and prices fell across the full maturity spectrum, highlighted by a move in the 10-year Treasury note to 2.40% at March 31, 2017 versus 1.78% a year earlier. The downturn in government issues, in turn, translated to weakness in other rate-sensitive asset classes such as mortgage-backed securities and municipal bonds. In contrast, investment-grade corporate issues bucked the broader trend by producing a positive return and outpacing U.S. Treasuries by a wide margin. Corporate issues were helped by the improvement in the economy, which contributed to stronger fundamentals for issuing companies, as well as a backdrop of healthy investor sentiment that supported demand for higher-yielding assets. High-yield bonds gained an even larger benefit from these trends, and they received an additional boost from the recovery in commodities. These factors contributed to a 12-month return of 16.39% for the Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index. In comparison, the Bloomberg Barclays U.S. Aggregate Index (which represents investmentgrade issues, including corporate securities) produced a gain of just 0.44%. At the close of the Period, the combination of healthier economic data, rising inflation and better corporate results were all factors contributing to upward pressure on bond yields. While the impact of these trends has been offset by investor demand for lower-risk assets, we would expect periods of volatility as the markets react to headlines and shifting expectations for U.S. Federal Reserve policy. However, it is important to keep in mind that if yields rise, they are rising for a positive reason such as: stronger economic growth. In this environment, we urge investors to remain focused on the importance of bonds in providing portfolio diversification, liquidity and the means to fund near-term goals. Bob Browne Chief Investment Officer Northern Trust

FIXED INCOME INDEX FUNDS TABLE OF CONTENTS 2 PORTFOLIO MANAGEMENT COMMENTARY 4 STATEMENTS OF ASSETS AND LIABILITIES 5 STATEMENTS OF OPERATIONS 6 STATEMENTS OF CHANGES IN NET ASSETS 7 FINANCIAL HIGHLIGHTS 9 SCHEDULES OF INVESTMENTS 9 BOND INDEX FUND Ticker Symbol: NOBOX 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 summary prospectus or prospectus, which contains more complete information about the Northern Funds investment objectives, risks, fees and expenses. Investors are reminded to read a summary prospectus or prospectus carefully before investing or sending money. This report contains certain forward-looking statements about factors that may affect the performance of Northern Funds in the future. These statements are based on Northern Funds management predictions and expectations concerning certain future events, such as performance of the economy as a whole and of specific industry sectors, changes in the levels of interest rates, the impact of developing world events, and other factors. Management believes these forwardlooking statements to be reasonable, although they are inherently uncertain and difficult to predict. Actual events may cause adjustments in Northern Funds management strategies from those currently expected to be employed. 80 U.S. TREASURY INDEX FUND Ticker Symbol: BTIAX 84 NOTES TO THE FINANCIAL STATEMENTS 90 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 91 TAX INFORMATION 92 FUND EXPENSES 93 TRUSTEES AND OFFICERS 99 INVESTMENT CONSIDERATIONS 100 FOR MORE INFORMATION Northern Funds are distributed by Northern Funds Distributors, LLC, Three Canal Plaza, Suite 100, Portland, Maine 04101, not affiliated with Northern Trust. NOT FDIC INSURED May lose value / No bank guarantee NORTHERN FUNDS ANNUAL REPORT 1 FIXED INCOME INDEX FUNDS

FIXED INCOME INDEX FUNDS BOND INDEX FUND (UNAUDITED) PORTFOLIO MANAGEMENT COMMENTARY During the 12-month reporting period ended March 31, 2017, financial markets were heavily influenced by political events ranging from the United Kingdom vote to leave the European Union ( Brexit ) to the U.S. presidential election. While the initial reaction to the June 23, 2016 Brexit was a sell-off in risk markets, sentiment rebounded by the end of June 2016. Equity markets to rally in the summer, and hit highs in August 2016. Markets then traded off until the November U.S. presidential election, when the surprise result caused a rally in risk assets as investors anticipated that business-friendly policies would lead to stronger economic growth. The stock market to rally, and corporate credit spreads tightened into March of 2017. However, the failure of the Republicans to agree on a health care bill raised broader concerns that U.S. President Trump s economic agenda could be more difficult to implement than previously believed, leading risk markets to soften as March 2017 progressed. The U.S. Federal Reserve raised its benchmark overnight lending rate in December of 2016 and March of 2017, and signaled the likelihood of two more increases by the end of calendar year 2017. For the 12-month reporting period, yields rose along the U.S. Treasury curve, and the curve steepened between two and 10 years while flattening between 10 and 30 years. The yield on the two-year Treasury rose from 0.73% to 1.27%, while the 10-year yield rose from 1.21% to 1.93%, and the 30-year rose from 1.78% to 2.40%. On a duration-adjusted basis, the Bloomberg Barclays U.S. Aggregate Bond Index return of 0.44% for the 12-month reporting period outperformed U.S. Treasury securities, with credit providing the strongest performance within the Index, followed by commercial mortgage-backed securities. For the 12-month period ended March 31, 2017, the Fund returned 0.14% versus the 0.44% return of the Fund s benchmark Bloomberg Barclays U.S. Aggregate Bond Index, with the difference in returns driven largely by the deduction of fees and transaction costs. We will continue to invest in a sample of securities that are representative of the Index in an effort to provide returns that closely approximate those of the Index. INVESTMENT PERFORMANCE PORTFOLIO MANAGERS AVERAGE ANNUAL RETURNS for periods ended March 31, 2017 TOTAL RETURN ONE YEAR FIVE YEAR TEN YEAR SINCE INCEPTION 02/27/07 BOND INDEX FUND 0.14% 2.17% 4.05% 4.00% BLOOMBERG BARCLAYS U.S. AGGREGATE BOND INDEX 0.44 2.34 4.27 4.22 Fund Performance reflects contractual expense reimbursements in effect. In their absence, performance would be reduced. Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at northerntrust.com/funds. LOUIS D ARIENZO With Northern Trust since 2003 BRANDON P. FERGUSON With Northern Trust since 2007 GROWTH OF A $10,000 INVESTMENT $16,000 $15,000 $14,000 $13,000 $12,000 $11,000 $10,000 $9,000 2/27/07 $14,851 $15,173 3/31/17 The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Unlike the Index, the Fund s total returns are reduced by operating expenses, such as transaction costs and management fees. A direct investment in an Index is not possible. BOND INDEX FUND BLOOMBERG BARCLAYS U.S. AGGREGATE BOND INDEX The Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), assetbacked securities, and commercial mortgage-backed securities. Information about Investment Considerations can be found on page 99. FIXED INCOME INDEX FUNDS 2 NORTHERN FUNDS ANNUAL REPORT

FIXED INCOME INDEX FUNDS U.S. TREASURY INDEX FUND* (UNAUDITED) PORTFOLIO MANAGEMENT COMMENTARY During the 12-month reporting period ended March 31, 2017, the Federal Reserve raised the range of its target federal funds rate by 25 basis points when it met in December 2016, and again in March 2017. The Federal Open Market Committee ( FOMC ) also signaled its intention to begin curtailing its holdings of U.S. mortgage-backed securities and U.S. Treasuries in the second half of calendar year 2017. The FOMC s median projected federal funds rate for the end of 2017 rose to 1.375%, indicating a total of three rate hikes during 2017. Its projection is for 2.125% at the end of 2018, reflecting its expectations for three more rate hikes next year. U.S. nonfarm payrolls surged to start 2017, averaging 185,000 jobs per month in the first quarter of 2017, up from 163,000 jobs per month in the fourth quarter of 2016. Unemployment fell to 4.5% to end the first quarter of 2017. Fourth-quarter gross domestic product slowed to 2.0% from the third quarter s robust 3.5%, mimicking the trend of the last two quarters of 2015. United Kingdom voters elected to invoke Article 50 of the European Union ( EU ) treaty, effectively removing the country from the European Union and sending pound sterling tumbling against major currencies. The Bank of Japan sought to target yield levels in its Yield Curve Control objective, while the European Central Bank kept rates in negative territory but declined to extend its asset purchase program. The U.S. Treasury yield curve steepened during the 12-month period ended March 31, 2017, as the yield of the benchmark two-year Treasury rose 54 basis points, from 0.72% to 1.26%, while 10-year yields rose 61 basis points, from 1.77% to 2.38%. Yields of five-year Treasuries rose 71 basis points, from 1.21% to 1.92%, and 30-year yields rose 40 basis points, from 2.61% to 3.01%. The Bloomberg Barclays U.S. Treasury Index returned -1.44% during the 12-month period ended March 31, 2017. As designed, the Fund performed in line with the Index, with a return of -1.63%. INVESTMENT PERFORMANCE PORTFOLIO MANAGERS AVERAGE ANNUAL RETURNS for periods ended March 31, 2017 TOTAL RETURN ONE YEAR FIVE YEAR TEN YEAR SINCE INCEPTION 01/11/93 U.S. TREASURY INDEX FUND 1.63% 1.42% 3.73% 5.05% BLOOMBERG BARCLAYS U.S. TREASURY INDEX 1.44 1.61 3.89 5.24 Fund Performance reflects contractual expense reimbursements in effect. In their absence, performance would be reduced. Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at northerntrust.com/funds. MICHAEL R. CHICO With Northern Trust since 2005 BRANDON P. FERGUSON With Northern Trust since 2007 * The Fund commenced operations on January 11, 1993 as a separate portfolio of Northern Institutional Funds (the Predecessor Fund ). On November 16, 2012, the Predecessor Fund was reorganized into the Fund, which was a new portfolio of Northern Funds with the same investment objective, strategies and policies as the Predecessor Fund. Performance information for the period prior to November 17, 2012, represents the performance of Class A shares of the Predecessor Fund. GROWTH OF A $10,000 INVESTMENT $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 1/11/93 $32,945 $34,491 3/31/17 The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Unlike the Index, the Fund s total returns are reduced by operating expenses, such as transaction costs and management fees. A direct investment in an Index is not possible. U.S. TREASURY INDEX FUND BLOOMBERG BARCLAYS U.S. TREASURY INDEX The Bloomberg Barclays U.S. Treasury Index is an unmanaged index of prices of U.S. Treasury bonds with maturities of one to thirty years. Information about Investment Considerations can be found on page 99. NORTHERN FUNDS ANNUAL REPORT 3 FIXED INCOME INDEX FUNDS

FIXED INCOME INDEX FUNDS STATEMENTS OF ASSETS AND LIABILITIES MARCH 31, 2017 Amounts in thousands, except per share data BOND INDEX FUND U.S. TREASURY INDEX FUND ASSETS: Investments, at value $2,457,487 $107,779 Investments in affiliates, at value 62,917 805 Interest income receivable 14,582 479 Dividend income receivable 23 Receivable for securities sold 24,923 2,114 Receivable for fund shares sold 961 134 Receivable from investment adviser 13 4 Prepaid and other assets 2 1 Total Assets 2,560,908 111,316 LIABILITIES: Payable for securities purchased 3,483 2,647 Payable for when-issued securities 55,349 Payable for fund shares redeemed 3,821 Distributions payable to shareholders 1,471 39 Payable to affiliates: Management fees 63 3 Custody fees 8 3 Shareholder servicing fees 37 Transfer agent fees 7 Trustee fees 9 4 Accrued other liabilities 42 21 Total Liabilities 64,290 2,717 Net Assets $2,496,618 $108,599 ANALYSIS OF NET ASSETS: Capital stock $2,477,179 $109,590 Accumulated undistributed net investment loss (68) (5) Accumulated undistributed net realized loss (4,867) (431) Net unrealized appreciation (depreciation) 24,374 (555) Net Assets $2,496,618 $108,599 Shares Outstanding ($.0001 par value, unlimited authorization) 238,358 5,087 Net Asset Value, Redemption and Offering Price Per Share $10.47 $21.35 Investments, at cost $2,433,113 $108,334 Investments in affiliates, at cost 62,917 805 FIXED INCOME INDEX FUNDS 4 NORTHERN FUNDS ANNUAL REPORT

FIXED INCOME INDEX FUNDS STATEMENTS OF OPERATIONS FOR THE FISCAL YEAR ENDED MARCH 31, 2017 Amounts in thousands BOND INDEX FUND U.S. TREASURY INDEX FUND INVESTMENT INCOME: Interest income $68,631 $2,030 Dividend income from investments in affiliates 197 2 Total Investment Income 68,828 2,032 EXPENSES: Management fees 3,572 156 Custody fees 307 26 Transfer agent fees 412 18 Blue sky fees 40 21 Printing fees 39 15 Audit fees 31 19 Legal fees 39 24 Shareholder servicing fees 190 Trustee fees 31 10 Other 37 13 Total Expenses 4,698 302 Less expenses reimbursed by investment adviser (537) (109) Net Expenses 4,161 193 Net Investment Income 64,667 1,839 NET REALIZED AND UNREALIZED GAINS (LOSSES): Net realized gains (losses) on: Investments 2,716 (21) Net change in unrealized appreciation (depreciation) on: Investments (68,979) (3,896) Net Losses (66,263) (3,917) Net Decrease in Net Assets Resulting from Operations $(1,596) $(2,078) NORTHERN FUNDS ANNUAL REPORT 5 FIXED INCOME INDEX FUNDS

FIXED INCOME INDEX FUNDS STATEMENTS OF CHANGES IN NET ASSETS FOR THE FISCAL YEARS ENDED MARCH 31, BOND INDEX FUND U.S. TREASURY INDEX FUND Amounts in thousands 2017 2016 2017 2016 OPERATIONS: Net investment income $64,667 $63,653 $1,839 $1,465 Net realized gains (losses) 2,716 9,513 (21) 645 Net change in unrealized appreciation (depreciation) (68,979) (24,780) (3,896) 493 Net Increase (Decrease) in Net Assets Resulting from Operations (1,596) 48,386 (2,078) 2,603 CAPITAL SHARE TRANSACTIONS: Net increase (decrease) in net assets resulting from capital share transactions (58,214) (72,988) (10,540) 32,038 Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions (58,214) (72,988) (10,540) 32,038 DISTRIBUTIONS PAID: From net investment income (70,351) (68,203) (1,839) (1,467) From net realized gains (3,236) (5,855) (460) (912) Total Distributions Paid (73,587) (74,058) (2,299) (2,379) Total Increase (Decrease) in Net Assets (133,397) (98,660) (14,917) 32,262 NET ASSETS: Beginning of year 2,630,015 2,728,675 123,516 91,254 End of year $2,496,618 $2,630,015 $108,599 $123,516 Accumulated Undistributed Net Investment Loss $(68) $(64) $(5) $(5) FIXED INCOME INDEX FUNDS 6 NORTHERN FUNDS ANNUAL REPORT

FIXED INCOME INDEX FUNDS FINANCIAL HIGHLIGHTS FOR THE FISCAL YEARS ENDED MARCH 31, BOND INDEX FUND Selected per share data 2017 2016 2015 2014 2013 Net Asset Value, Beginning of Year $10.74 $10.84 $10.54 $10.87 $10.86 INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net investment income 0.25 0.25 0.27 0.25 0.27 Net realized and unrealized gains (losses) (0.24) (0.06) 0.32 (0.29) 0.12 Total from Investment Operations 0.01 0.19 0.59 (0.04) 0.39 LESS DISTRIBUTIONS PAID: From net investment income (0.27) (0.27) (0.28) (0.28) (0.29) From net realized gains (0.01) (0.02) (0.01) (0.01) (0.09) Total Distributions Paid (0.28) (0.29) (0.29) (0.29) (0.38) Net Asset Value, End of Year $10.47 $10.74 $10.84 $10.54 $10.87 Total Return (1) 0.14% 1.90% 5.64% (0.31)% 3.62% SUPPLEMENTAL DATA AND RATIOS: Net assets, in thousands, end of year $2,496,618 $2,630,015 $2,728,675 $2,248,542 $2,636,178 Ratio to average net assets of: Expenses, net of reimbursements and credits (2) 0.15% 0.15% 0.15% 0.15% 0.14% Expenses, before reimbursements and credits 0.17% 0.17% 0.23% 0.44% 0.44% Net investment income, net of reimbursements and credits (2) 2.35% 2.40% 2.44% 2.43% 2.45% Net investment income, before reimbursements and credits 2.33% 2.38% 2.36% 2.14% 2.15% Portfolio Turnover Rate 65.28% 88.99% 81.30% 88.79% 100.20% (1) (2) 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. The net expenses and net investment income ratios include additional reimbursements of management or advisory fees, as applicable, incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $126,000, $87,000, $26,000, $101,000 and $296,000, which represent less than 0.01, less than 0.005, less than 0.005, less than 0.005 and 0.01 percent of average net assets for the fiscal years ended March 31, 2017, 2016, 2015, 2014 and 2013, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses would have been increased by a corresponding amount. NORTHERN FUNDS ANNUAL REPORT 7 FIXED INCOME INDEX FUNDS

FIXED INCOME INDEX FUNDS FINANCIAL HIGHLIGHTS U.S. TREASURY INDEX FUND Selected per share data FISCAL YEAR ENDED MAR 31, 2017 FISCAL YEAR ENDED MAR 31, 2016 FISCAL YEAR ENDED MAR 31, 2015 FISCAL YEAR ENDED MAR 31, 2014 SHARES/CLASS A SHARES FOUR MONTHS ENDED MAR 31, 2013 FISCAL YEAR ENDED NOV 30, 2012 Net Asset Value, Beginning of Period $22.13 $22.17 $21.43 $22.25 $23.29 $23.38 INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net investment income 0.34 0.32 0.29 0.26 0.09 0.33 Net realized and unrealized gains (losses) (0.70) 0.16 0.81 (0.59) (0.24) 0.39 Total from Investment Operations (0.36) 0.48 1.10 (0.33) (0.15) 0.72 LESS DISTRIBUTIONS PAID: From net investment income (0.34) (0.32) (0.29) (0.26) (0.09) (0.34) From net realized gains (0.08) (0.20) (0.07) (0.23) (0.80) (0.47) Total Distributions Paid (0.42) (0.52) (0.36) (0.49) (0.89) (0.81) Net Asset Value, End of Period $21.35 $22.13 $22.17 $21.43 $22.25 $23.29 Total Return (1) (1.63)% 2.25% 5.20% (1.44)% (0.70)% 3.17% SUPPLEMENTAL DATA AND RATIOS: Net assets, in thousands, end of period $108,599 $123,516 $91,254 $114,262 $132,160 $139,579 Ratio to average net assets of: (2) Expenses, net of reimbursements and credits 0.16% (3) 0.16% (3) 0.16% 0.15% (3) 0.15% (3) 0.26% (3) Expenses, before reimbursements and credits 0.25% 0.26% 0.40% 0.68% 0.68% 0.52% Net investment income, net of reimbursements and credits 1.53% (3) 1.47% (3) 1.34% 1.20% (3) 1.20% (3) 1.43% (3) Net investment income, before reimbursements and credits 1.44% 1.37% 1.10% 0.67% 0.67% 1.17% Portfolio Turnover Rate 38.93% 68.57% 50.58% 69.65% 21.88% 74.49% (1) (2) (3) Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. The total return is not annualized for periods less than one year. Annualized for periods less than one year. The net expenses and net investment income ratios include additional reimbursements of management or advisory fees, as applicable, incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $1,000, which represents less than 0.01 percent of average net assets for the fiscal year ended March 31, 2017, less than $1,000, less than $1,000, $1,000 and $1,000, which represent less than 0.005 percent of average net assets for the fiscal years ended March 31, 2016, 2014, four months ended March 31, 2013 and fiscal year ended November 30, 2012, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses would have been increased by a corresponding amount. FIXED INCOME INDEX FUNDS 8 NORTHERN FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS BOND INDEX FUND MARCH 31, 2017 ASSET-BACKED SECURITIES 1.6% Automobile 0.2% AmeriCredit Automobile Receivables Trust, Series 2014-3, Class C 2.58%, 9/8/20 $100 $101 AmeriCredit Automobile Receivables Trust, Series 2014-3, Class D 3.13%, 10/8/20 50 51 Americredit Automobile Receivables Trust, Series 2014-4, Class D 3.07%, 11/9/20 100 101 AmeriCredit Automobile Receivables Trust, Series 2015-2, Class C 2.40%, 1/8/21 100 101 Americredit Automobile Receivables Trust, Series 2016-4, Class A3 1.53%, 7/8/21 50 50 Americredit Automobile Receivables Trust, Series 2016-4, Class B 1.83%, 12/8/21 50 50 Americredit Automobile Receivables Trust, Series 2016-4, Class C 2.41%, 7/8/22 50 50 Americredit Automobile Receivables Trust, Series 2016-4, Class D 2.74%, 12/8/22 60 60 BMW Vehicle Owner Trust, Series 2016-A, Class A3 1.16%, 11/25/20 250 248 CarMax Auto Owner Trust, Series 2016-2, Class A3 1.52%, 2/16/21 100 100 CarMax Auto Owner Trust, Series 2016-3, Class A3 1.39%, 5/17/21 100 99 CarMax Auto Owner Trust, Series 2016-4, Class A3 1.40%, 8/15/21 100 99 Ford Credit Auto Owner Trust, Series 2016-B, Class A3 1.33%, 10/15/20 150 149 Ford Credit Auto Owner Trust, Series 2016-B, Class A4 1.52%, 8/15/21 100 99 Ford Credit Auto Owner Trust, Series 2016-B, Class B 1.85%, 9/15/21 50 50 ASSET-BACKED SECURITIES - 1.6% Automobile 0.2% Ford Credit Auto Owner Trust, Series 2016-C, Class A3 1.22%, 3/15/21 $100 $99 Ford Credit Auto Owner Trust, Series 2017-A, Class A3 1.67%, 6/15/21 100 100 Ford Credit Auto Owner Trust, Series 2017-A, Class B 2.24%, 6/15/22 100 100 Honda Auto Receivables Owner Trust, Series 2015-4, Class A3 1.23%, 9/23/19 200 199 Honda Auto Receivables Owner Trust, Series 2016-2, Class A3 1.39%, 4/15/20 100 100 Honda Auto Receivables Owner Trust, Series 2016-2, Class A4 1.62%, 8/15/22 150 149 Honda Auto Receivables Owner Trust, Series 2016-3, Class A3 1.16%, 5/18/20 100 99 Huntington Auto Trust, Series 2016-1, Class A3 1.59%, 11/16/20 100 100 Hyundai Auto Receivables Trust, Series 2016-A, Class A3 1.56%, 9/15/20 330 330 Hyundai Auto Receivables Trust, Series 2016-A, Class A4 1.73%, 5/16/22 250 249 Nissan Auto Lease Trust, Series 2016-B, Class A3 1.50%, 7/15/19 150 150 Nissan Auto Receivables Owner Trust, Series 2014-B, Class A4 1.66%, 3/15/21 200 200 Nissan Auto Receivables Owner Trust, Series 2016-B, Class A4 1.54%, 10/17/22 150 148 Santander Drive Auto Receivables Trust, Series 2014-2, Class D 2.76%, 2/18/20 75 76 Santander Drive Auto Receivables Trust, Series 2014-3, Class D 2.65%, 8/17/20 50 50 NORTHERN FUNDS ANNUAL REPORT 9 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS BOND INDEX FUND ASSET-BACKED SECURITIES - 1.6% Automobile 0.2% Santander Drive Auto Receivables Trust, Series 2014-4, Class D 3.10%, 11/16/20 $50 $51 Santander Drive Auto Receivables Trust, Series 2015-4, Class C 2.97%, 3/15/21 100 101 Santander Drive Auto Receivables Trust, Series 2016-3, Class B 1.89%, 6/15/21 100 100 Santander Drive Auto Receivables Trust, Series 2016-3, Class C 2.46%, 3/15/22 100 100 Santander Drive Auto Receivables Trust, Series 2016-3, Class D 2.80%, 8/15/22 100 99 Toyota Auto Receivables Owner Trust, Series 2016-A, Class A3 1.25%, 3/16/20 250 249 Toyota Auto Receivables Owner Trust, Series 2016-A, Class A4 1.47%, 9/15/21 150 149 Toyota Auto Receivables Owner Trust, Series 2016-D, Class A3 1.23%, 10/15/20 100 99 World Omni Auto Receivables Trust, Series 2015-B, Class A3 1.49%, 12/15/20 253 253 World Omni Auto Receivables Trust, Series 2016-A, Class A4 1.95%, 5/16/22 250 249 5,007 Commercial Mortgage-Backed Securities 1.1% Banc of America Commercial Mortgage Trust, Series 2016-UB10, Class A4 3.17%, 7/15/49 300 298 CFCRE Commercial Mortgage Trust, Series 2016-C3, Class A3 3.87%, 1/10/48 300 312 CFCRE Commercial Mortgage Trust, Series 2016-C4, Class A4 3.28%, 5/10/58 250 249 Citigroup Commercial Mortgage Trust, Series 2012-GC8, Class A4 3.02%, 9/10/45 400 408 ASSET-BACKED SECURITIES - 1.6% Commercial Mortgage-Backed Securities 1.1% Citigroup Commercial Mortgage Trust, Series 2013-GC15, Class A4 4.37%, 9/10/46 (1) $350 $379 Citigroup Commercial Mortgage Trust, Series 2013-GC15, Class AS 4.65%, 9/10/46 (1) 100 108 Citigroup Commercial Mortgage Trust, Series 2014-GC25, Class A4 3.64%, 10/10/47 100 103 Citigroup Commercial Mortgage Trust, Series2015-GC27,ClassA5 3.14%, 2/10/48 200 199 Citigroup Commercial Mortgage Trust, Series 2015-P1, Class A5 3.72%, 9/15/48 200 207 Citigroup Commercial Mortgage Trust, Series 2016-C1, Class A4 3.21%, 5/10/49 250 249 Citigroup Commercial Mortgage Trust, Series2016-C3,ClassA4 3.15%, 11/15/49 150 148 Citigroup Commercial Mortgage Trust, Series 2016-GC36, Class A5 3.62%, 2/10/49 300 308 Citigroup Commercial Mortgage Trust, Series 2016-GC37, Class A4 3.31%, 4/10/49 250 250 Citigroup Commercial Mortgage Trust, Series 2016-P3, Class A4 3.33%, 4/15/49 250 251 Commercial Mortgage Pass Through Certificates, Series 2012-CR3, Class A3 2.82%, 10/15/45 245 247 Commercial Mortgage Trust, Series 2012-CR2, Class A4 3.15%, 8/15/45 335 343 Commercial Mortgage Trust, Series 2012-CR4, Class A3 2.85%, 10/15/45 150 151 Commercial Mortgage Trust, Series 2012-CR5, Class A4 2.77%, 12/10/45 100 101 Commercial Mortgage Trust, Series 2012-LC4, Class A4 3.29%, 12/10/44 100 103 FIXED INCOME INDEX FUNDS 10 NORTHERN FUNDS ANNUAL REPORT

MARCH 31, 2017 ASSET-BACKED SECURITIES - 1.6% Commercial Mortgage-Backed Securities 1.1% Commercial Mortgage Trust, Series 2013-CR10, Class A4 4.21%, 8/10/46 (1) $100 $108 Commercial Mortgage Trust, Series 2013-CR12, Class A4 4.05%, 10/10/46 300 319 Commercial Mortgage Trust, Series 2013-CR9, Class A4 4.23%, 7/10/45 (1) 200 216 Commercial Mortgage Trust, Series 2013-LC6, Class A4 2.94%, 1/10/46 150 152 Commercial Mortgage Trust, Series 2014-CR19, Class A5 3.80%, 8/10/47 300 314 Commercial Mortgage Trust, Series 2014-UBS5, Class A4 3.84%, 9/10/47 500 520 Commercial Mortgage Trust, Series 2014-UBS6, Class A5 3.64%, 12/10/47 250 257 Commercial Mortgage Trust, Series 2015-CR24, Class A5 3.70%, 8/10/48 500 516 Commercial Mortgage Trust, Series 2015-DC1, Class A2 2.87%, 2/10/48 200 203 Commercial Mortgage Trust, Series 2015-DC1, Class A5 3.35%, 2/10/48 200 201 Commercial Mortgage Trust, Series 2015-LC19, Class A4 3.18%, 2/10/48 500 502 Commercial Mortgage Trust, Series 2015-PC1, Class A5 3.90%, 7/10/50 200 208 CSAIL Commercial Mortgage Trust, Series 2015-C1, Class A4 3.51%, 4/15/50 225 231 CSAIL Commercial Mortgage Trust, Series 2015-C3, Class A4 3.72%, 8/15/48 500 517 CSAIL Commercial Mortgage Trust, Series 2016-C6, Class A5 3.09%, 1/15/49 100 98 ASSET-BACKED SECURITIES - 1.6% Commercial Mortgage-Backed Securities 1.1% CSAIL Commercial Mortgage Trust, Series 2016-C7, Class A5 3.50%, 11/15/49 $200 $202 GS Mortgage Securities Corp II, Series 2015-GC30, Class A4 3.38%, 5/10/50 200 203 GS Mortgage Securities Corp. II, Series 2013-GC10, Class A5 2.94%, 2/10/46 100 101 GS Mortgage Securities Trust, Series 2011-GC5, Class A4 3.71%, 8/10/44 150 157 GS Mortgage Securities Trust, Series 2012-GC6, Class A3 3.48%, 1/10/45 199 208 GS Mortgage Securities Trust, Series 2012-GCJ9, Class A3 2.77%, 11/10/45 175 176 GS Mortgage Securities Trust, Series 2013-GC12, Class A4 3.14%, 6/10/46 100 102 GS Mortgage Securities Trust, Series 2013-GC13, Class A5 4.03%, 7/10/46 (1) 200 215 GS Mortgage Securities Trust, Series 2013-GC14, Class A5 4.24%, 8/10/46 150 161 GS Mortgage Securities Trust, Series 2014-GC18, Class A4 4.07%, 1/10/47 500 530 GS Mortgage Securities Trust, Series 2014-GC20, Class A5 4.00%, 4/10/47 100 106 GS Mortgage Securities Trust, Series 2014-GC24, Class A5 3.93%, 9/10/47 300 316 GS Mortgage Securities Trust, Series 2014-GC26, Class A5 3.63%, 11/10/47 250 258 GS Mortgage Securities Trust, Series 2015-GC28, Class A2 2.90%, 2/10/48 150 153 GS Mortgage Securities Trust, Series 2016-GS2, Class A4 3.05%, 5/10/49 100 99 NORTHERN FUNDS ANNUAL REPORT 11 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS BOND INDEX FUND ASSET-BACKED SECURITIES - 1.6% Commercial Mortgage-Backed Securities 1.1% GS Mortgage Securities Trust, Series 2016-GS3, Class A4 2.85%, 10/10/49 $200 $194 JP Morgan Chase Commercial Mortgage Securities Trust, Series 2011-C5, Class A3 4.17%, 8/15/46 168 179 JP Morgan Chase Commercial Mortgage Securities Trust, Series 2012-C6, Class A3 3.51%, 5/15/45 194 201 JP Morgan Chase Commercial Mortgage Securities Trust, Series 2012-CBX, Class A4 3.48%, 6/15/45 250 260 JP Morgan Chase Commercial Mortgage Securities Trust, Series 2013-C10, Class A5 3.14%, 12/15/47 150 153 JP Morgan Chase Commercial Mortgage Securities Trust, Series 2013-C10, Class AS 3.37%, 12/15/47 50 50 JP Morgan Chase Commercial Mortgage Securities Trust, Series 2013-C13, Class A4 3.99%, 1/15/46 (1) 100 106 JP Morgan Chase Commercial Mortgage Securities Trust, Series 2014-C19, Class A2 3.05%, 4/15/47 100 102 JP Morgan Chase Commercial Mortgage Securities Trust, Series 2014-C19, Class A4 4.00%, 4/15/47 500 528 JP Morgan Chase Commercial Mortgage Securities Trust, Series 2014-C20, Class A5 3.80%, 7/15/47 500 522 JP Morgan Chase Commercial Mortgage Securities Trust, Series 2014-C22, Class A4 3.80%, 9/15/47 500 518 JP Morgan Chase Commercial Mortgage Securities Trust, Series 2014-C24, Class A2 2.94%, 11/15/47 250 255 ASSET-BACKED SECURITIES - 1.6% Commercial Mortgage-Backed Securities 1.1% JP Morgan Chase Commercial Mortgage Securities Trust, Series 2014-C24, Class A5 3.64%, 11/15/47 $200 $207 JP Morgan Chase Commercial Mortgage Securities Trust, Series 2014-C25, Class A5 3.67%, 11/15/47 150 155 JP Morgan Chase Commercial Mortgage Securities Trust, Series 2015-C30, Class A5 3.82%, 7/15/48 200 208 JP Morgan Chase Commercial Mortgage Securities Trust, Series 2016-JP3, Class A5 2.87%, 8/15/49 200 193 JP Morgan Chase Commercial Mortgage Securities Trust, Series 2016-JP3, Class AS 3.14%, 8/15/49 100 97 JPMDB Commercial Mortgage Securities Trust, Series 2016-C2, Class A2 2.66%, 6/15/49 100 101 JPMDB Commercial Mortgage Securities Trust, Series 2016-C2, Class A4 3.14%, 6/15/49 100 99 JPMDB Commercial Mortgage Securities Trust, Series 2016-C4, Class A3 3.14%, 12/15/49 150 148 Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C11, Class A4 4.17%, 8/15/46 (1) 200 213 Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C7, Class A4 2.92%, 2/15/46 175 177 Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C9, Class A4 3.10%, 5/15/46 200 202 FIXED INCOME INDEX FUNDS 12 NORTHERN FUNDS ANNUAL REPORT

MARCH 31, 2017 ASSET-BACKED SECURITIES - 1.6% Commercial Mortgage-Backed Securities 1.1% Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C14, Class A2 2.92%, 2/15/47 $200 $203 Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C14, Class A3 3.67%, 2/15/47 100 104 Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C14, Class A5 4.06%, 2/15/47 200 212 Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C17, Class A5 3.74%, 8/15/47 400 416 Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C18, Class A2 3.19%, 10/15/47 500 512 Morgan Stanley Bank of America Merrill Lynch Trust, Series 2015-C20, Class A2 2.79%, 2/15/48 500 506 Morgan Stanley Bank of America Merrill Lynch Trust, Series 2015-C26, Class A5 3.53%, 10/15/48 100 102 Morgan Stanley Bank of America Merrill Lynch Trust, Series 2016-C29, Class A4 3.33%, 5/15/49 250 251 Morgan Stanley Bank of America Merrill Lynch Trust, Series 2016-C30, Class A5 2.86%, 9/15/49 250 241 Morgan Stanley Capital I Trust, Series 2012-C4, Class A4 3.24%, 3/15/45 150 154 UBS Commercial Mortgage Trust, Series 2012-C1, Class A3 3.40%, 5/10/45 393 408 UBS-Barclays Commercial Mortgage Trust, Series 2012-C3, Class A4 3.09%, 8/10/49 125 128 ASSET-BACKED SECURITIES - 1.6% Commercial Mortgage-Backed Securities 1.1% UBS-Barclays Commercial Mortgage Trust, Series 2012-C4, Class A5 2.85%, 12/10/45 $100 $101 UBS-Barclays Commercial Mortgage Trust, Series 2013-C5, Class A4 3.18%, 3/10/46 100 102 UBS-Barclays Commercial Mortgage Trust, Series 2013-C6, Class A4 3.24%, 4/10/46 100 102 UBS-Citigroup Commercial Mortgage Trust, Series 2011-C1, Class A3 3.60%, 1/10/45 150 156 Wells Fargo Commercial Mortgage Trust, Series 2012-LC5, Class A3 2.92%, 10/15/45 150 152 Wells Fargo Commercial Mortgage Trust, Series 2013-LC12, Class A4 4.22%, 7/15/46 (1) 100 107 Wells Fargo Commercial Mortgage Trust, Series 2015-C26, Class A4 3.17%, 2/15/48 100 99 Wells Fargo Commercial Mortgage Trust, Series 2015-C30, Class A4 3.66%, 9/15/58 250 257 Wells Fargo Commercial Mortgage Trust, Series 2015-LC20, Class A5 3.18%, 4/15/50 200 199 Wells Fargo Commercial Mortgage Trust, Series 2015-NXS1, Class A2 2.63%, 5/15/48 500 506 Wells Fargo Commercial Mortgage Trust, Series 2015-NXS2, Class A5 3.77%, 7/15/58 (1) 300 311 Wells Fargo Commercial Mortgage Trust, Series 2015-NXS4, Class A4 3.72%, 12/15/48 300 309 Wells Fargo Commercial Mortgage Trust, Series 2016-C32, Class A4 3.56%, 1/15/59 200 204 Wells Fargo Commercial Mortgage Trust, Series 2016-C33, Class A4 3.43%, 3/15/59 250 253 Wells Fargo Commercial Mortgage Trust, Series 2016-C35, Class A4 2.93%, 7/15/48 100 97 NORTHERN FUNDS ANNUAL REPORT 13 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS BOND INDEX FUND ASSET-BACKED SECURITIES - 1.6% Commercial Mortgage-Backed Securities 1.1% Wells Fargo Commercial Mortgage Trust, Series 2016-C36, Class A4 3.07%, 11/15/59 $250 $245 Wells Fargo Commercial Mortgage Trust, Series 2016-LC24, Class A4 2.94%, 10/15/49 200 193 Wells Fargo Commercial Mortgage Trust, Series 2016-NXS6, Class A4 2.92%, 11/15/49 150 145 WFRBS Commercial Mortgage Trust, Series 2011-C5, Class A4 3.67%, 11/15/44 150 157 WFRBS Commercial Mortgage Trust, Series 2012-C6, Class A4 3.44%, 4/15/45 175 182 WFRBS Commercial Mortgage Trust, Series 2012-C7, Class A2 3.43%, 6/15/45 250 259 WFRBS Commercial Mortgage Trust, Series 2013-C12, Class A4 3.20%, 3/15/48 600 612 WFRBS Commercial Mortgage Trust, Series 2013-C12, Class AS 3.56%, 3/15/48 50 51 WFRBS Commercial Mortgage Trust, Series 2013-C13, Class A4 3.00%, 5/15/45 500 503 WFRBS Commercial Mortgage Trust, Series 2013-C14, Class A5 3.34%, 6/15/46 150 154 WFRBS Commercial Mortgage Trust, Series 2013-C16, Class A2 3.22%, 9/15/46 100 102 WFRBS Commercial Mortgage Trust, Series 2013-C16, Class A5 4.42%, 9/15/46 250 271 WFRBS Commercial Mortgage Trust, Series 2014-C22, Class A5 3.75%, 9/15/57 500 519 ASSET-BACKED SECURITIES - 1.6% Commercial Mortgage-Backed Securities 1.1% WFRBS Commercial Mortgage Trust, Series 2014-C25, Class A5 3.63%, 11/15/47 $250 $257 WFRBS Commercial Mortgage Trust, Series2014-LC14,ClassA5 4.05%, 3/15/47 100 106 26,579 Credit Card 0.3% Barclays Dryrock Issuance Trust, Series 2014-3, Class A 2.41%, 7/15/22 150 152 Barclays Dryrock Issuance Trust, Series 2015-2, Class A 1.56%, 3/15/21 100 100 Capital One Multi-Asset Execution Trust, Series 2015-A5, Class A5 1.60%, 5/17/21 180 180 Capital One Multi-Asset Execution Trust, Series 2016-A3, Class A3 1.34%, 4/15/22 255 253 Capital One Multi-Asset Execution Trust, Series 2016-A4, Class A4 1.33%, 6/15/22 150 148 Capital One Multi-Asset Execution Trust, Series 2016-A5, Class A5 1.66%, 6/17/24 100 98 Chase Issuance Trust, Series 2012-A4, Class A4 1.58%, 8/16/21 250 249 Chase Issuance Trust, Series 2012-A7, Class A7 2.16%, 9/16/24 200 197 Chase Issuance Trust, Series 2014-A2, Class A2 2.77%, 3/15/23 150 153 Chase Issuance Trust, Series 2015-A4, Class A4 1.84%, 4/15/22 300 299 Chase Issuance Trust, Series 2016-A2, Class A 1.37%, 6/15/21 225 223 Chase Issuance Trust, Series 2016-A4, Class A4 1.49%, 7/15/22 150 148 FIXED INCOME INDEX FUNDS 14 NORTHERN FUNDS ANNUAL REPORT

MARCH 31, 2017 ASSET-BACKED SECURITIES - 1.6% Credit Card 0.3% Chase Issuance Trust, Series 2016-A5, Class A5 1.27%, 7/15/21 $250 $247 Citibank Credit Card Issuance Trust, Series 2007-A3, Class A3 6.15%, 6/15/39 150 196 Citibank Credit Card Issuance Trust, Series 2014-A1, Class A1 2.88%, 1/23/23 300 308 Citibank Credit Card Issuance Trust, Series 2014-A5, Class A5 2.68%, 6/7/23 150 153 Citibank Credit Card Issuance Trust, Series 2014-A6, Class A6 2.15%, 7/15/21 350 353 Citibank Credit Card Issuance Trust, Series 2016-A1, Class A1 1.75%, 11/19/21 350 349 Citibank Credit Card Issuance Trust, Series 2017-A2, Class A2 1.74%, 1/19/21 300 300 Discover Card Execution Note Trust, Series 2012-A6, Class A6 1.67%, 1/18/22 350 350 Discover Card Execution Note Trust, Series 2014-A4, Class A4 2.12%, 12/15/21 400 403 Discover Card Execution Note Trust, Series 2015-A2, Class A 1.90%, 10/17/22 100 100 Discover Card Execution Note Trust, Series 2015-A3, Class A 1.45%, 3/15/21 150 150 Discover Card Execution Note Trust, Series 2015-A4, Class A4 2.19%, 4/17/23 200 201 Discover Card Execution Note Trust, Series 2016-A1, Class A1 1.64%, 7/15/21 250 250 Discover Card Execution Note Trust, Series 2016-A4, Class A4 1.39%, 3/15/22 185 183 Discover Card Execution Note Trust, Series 2017-A2, Class A2 2.39%, 7/15/24 150 151 ASSET-BACKED SECURITIES - 1.6% Credit Card 0.3% Synchrony Credit Card Master Note Trust, Series 2012-7, Class A 1.76%, 9/15/22 $100 $100 Synchrony Credit Card Master Note Trust, Series 2015-1, Class A 2.37%, 3/15/23 150 152 Synchrony Credit Card Master Note Trust, Series 2016-1, Class A 2.04%, 3/15/22 200 201 Synchrony Credit Card Master Note Trust, Series 2016-2, Class A 2.21%, 5/15/24 100 100 World Financial Network Credit Card Master Trust, Series 2015-B, Class A 2.55%, 6/17/24 100 101 6,548 Other 0.0% AEP Texas Central Transition Funding lll LLC, Series 2012-1, Class A3 2.84%, 3/1/26 100 101 CenterPoint Energy Restoration Bond Co. LLC, Series 2009-1, Class A3 4.24%, 8/15/23 100 105 CenterPoint Energy Transition Bond Co. IV LLC, Series 2012-1, Class A3 3.03%, 10/15/25 150 154 Entergy Texas Restoration Funding LLC, Series 2009-A, Class A3 4.38%, 11/1/23 100 106 466 Total Asset-Backed Securities (Cost $38,583) 38,600 CORPORATE BONDS 24.5% Advertising & Marketing 0.0% Interpublic Group of (The) Cos., Inc., 4.20%, 4/15/24 150 155 Omnicom Group, Inc., 6.25%, 7/15/19 300 327 3.63%, 5/1/22 156 161 3.60%, 4/15/26 340 340 983 NORTHERN FUNDS ANNUAL REPORT 15 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS BOND INDEX FUND Aerospace & Defense 0.5% Boeing (The) Co., 0.95%, 5/15/18 $200 $199 7.95%, 8/15/24 250 331 2.85%, 10/30/24 110 110 6.13%, 2/15/33 135 173 3.30%, 3/1/35 55 52 6.63%, 2/15/38 100 136 5.88%, 2/15/40 75 96 3.50%, 3/1/45 500 459 General Dynamics Corp., 3.88%, 7/15/21 250 265 2.25%, 11/15/22 500 492 2.13%, 8/15/26 350 324 3.60%, 11/15/42 155 148 Harris Corp., 4.40%, 12/15/20 950 1,010 L3 Technologies, Inc., 5.20%, 10/15/19 250 268 4.95%, 2/15/21 40 43 Lockheed Martin Corp., 4.25%, 11/15/19 500 530 2.50%, 11/23/20 355 357 3.55%, 1/15/26 1,100 1,118 3.60%, 3/1/35 135 129 4.07%, 12/15/42 868 852 Northrop Grumman Corp., 1.75%, 6/1/18 125 125 5.05%, 8/1/19 170 182 5.05%, 11/15/40 250 278 4.75%, 6/1/43 250 269 Precision Castparts Corp., 2.50%, 1/15/23 500 493 3.90%, 1/15/43 100 98 4.38%, 6/15/45 350 367 Raytheon Co., 4.40%, 2/15/20 510 545 2.50%, 12/15/22 1,150 1,145 4.70%, 12/15/41 100 111 United Technologies Corp., 7.50%, 9/15/29 100 140 6.05%, 6/1/36 600 748 6.13%, 7/15/38 175 222 Aerospace & Defense 0.5% 5.70%, 4/15/40 $500 $609 4.50%, 6/1/42 450 476 3.75%, 11/1/46 500 469 13,369 Airlines 0.0% Continental Airlines Pass Through Trust, Series 2009-2, Class A, 7.25%, 11/10/19 252 279 Southwest Airlines Co. Pass Through Trust, Series 2007-1, 6.15%, 8/1/22 318 352 631 Apparel & Textile Products 0.0% Cintas Corp. No 2, 2.90%, 4/1/22 85 86 NIKE, Inc., 2.38%, 11/1/26 250 234 3.63%, 5/1/43 75 70 3.38%, 11/1/46 500 442 VF Corp., 3.50%, 9/1/21 150 156 6.00%, 10/15/33 100 119 6.45%, 11/1/37 30 39 1,146 Auto Parts Manufacturing 0.0% BorgWarner, Inc., 4.38%, 3/15/45 170 166 Delphi Corp., 4.15%, 3/15/24 300 313 479 Automobiles Manufacturing 0.8% American Honda Finance Corp., 1.60%, 7/13/18 180 180 2.13%, 10/10/18 75 76 2.25%, 8/15/19 250 252 2.15%, 3/13/20 800 802 1.65%, 7/12/21 400 388 1.70%, 9/9/21 500 484 Daimler Finance North America LLC, 8.50%, 1/18/31 175 264 Ford Motor Co., 7.45%, 7/16/31 350 441 FIXED INCOME INDEX FUNDS 16 NORTHERN FUNDS ANNUAL REPORT

MARCH 31, 2017 Automobiles Manufacturing 0.8% 4.75%, 1/15/43 $500 $470 Ford Motor Credit Co. LLC, 2.88%, 10/1/18 200 202 2.02%, 5/3/19 600 597 1.90%, 8/12/19 200 198 2.60%, 11/4/19 200 201 2.46%, 3/27/20 260 259 3.16%, 8/4/20 860 874 3.20%, 1/15/21 1,200 1,213 3.34%, 3/18/21 500 506 5.88%, 8/2/21 500 557 3.22%, 1/9/22 200 201 4.25%, 9/20/22 1,300 1,355 3.10%, 5/4/23 1,000 976 General Motors Co., 3.50%, 10/2/18 3,000 3,066 6.25%, 10/2/43 550 606 6.75%, 4/1/46 145 170 General Motors Financial Co., Inc., 6.75%, 6/1/18 500 527 3.20%, 7/13/20 395 402 3.20%, 7/6/21 485 487 4.38%, 9/25/21 400 421 3.45%, 4/10/22 500 504 3.70%, 5/9/23 600 602 4.35%, 1/17/27 165 166 Toyota Motor Credit Corp., 1.55%, 7/13/18 90 90 2.00%, 10/24/18 400 402 2.10%, 1/17/19 100 101 1.70%, 2/19/19 660 661 2.13%, 7/18/19 100 101 4.50%, 6/17/20 300 322 1.90%, 4/8/21 300 296 2.25%, 10/18/23 545 527 19,947 Banks 0.9% Bank of America N.A., 6.00%, 10/15/36 250 307 Bank One Corp., 7.75%, 7/15/25 54 68 BB&T Corp., 2.05%, 6/19/18 100 100 Banks 0.9% 2.25%, 2/1/19 $100 $101 2.45%, 1/15/20 450 455 2.75%, 4/1/22 150 151 Branch Banking & Trust Co., 2.30%, 10/15/18 500 504 2.85%, 4/1/21 650 660 3.63%, 9/16/25 250 256 3.80%, 10/30/26 250 260 Capital One N.A., 2.40%, 9/5/19 250 251 2.35%, 1/31/20 500 500 Citizens Bank N.A., 2.50%, 3/14/19 250 252 2.55%, 5/13/21 250 249 Comerica Bank, 2.50%, 6/2/20 500 500 Discover Bank, 2.60%, 11/13/18 250 252 3.20%, 8/9/21 250 253 Fifth Third Bancorp, 2.88%, 7/27/20 500 508 3.50%, 3/15/22 200 205 4.30%, 1/16/24 220 230 8.25%, 3/1/38 275 392 Fifth Third Bank, 1.63%, 9/27/19 350 346 2.25%, 6/14/21 200 198 2.88%, 10/1/21 250 253 HSBC Bank USA N.A., 4.88%, 8/24/20 300 321 7.00%, 1/15/39 350 471 HSBC USA, Inc., 2.63%, 9/24/18 80 81 2.38%, 11/13/19 250 251 2.35%, 3/5/20 700 702 2.75%, 8/7/20 750 758 3.50%, 6/23/24 1,000 1,019 Huntington Bancshares, Inc., 3.15%, 3/14/21 500 509 KeyBank N.A., 2.50%, 12/15/19 250 253 2.25%, 3/16/20 1,000 1,001 3.30%, 6/1/25 250 250 NORTHERN FUNDS ANNUAL REPORT 17 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS BOND INDEX FUND Banks 0.9% KeyCorp, 2.30%, 12/13/18 $250 $252 5.10%, 3/24/21 25 27 MUFG Americas Holdings Corp., 2.25%, 2/10/20 170 170 3.50%, 6/18/22 150 154 MUFG Union Bank N.A., 2.63%, 9/26/18 250 253 PNC Bank N.A., 1.85%, 7/20/18 250 251 1.45%, 7/29/19 250 247 2.30%, 6/1/20 500 501 2.70%, 11/1/22 750 744 2.95%, 1/30/23 250 251 3.80%, 7/25/23 250 261 PNC Financial Services Group (The), Inc., 6.70%, 6/10/19 600 660 4.38%, 8/11/20 500 533 3.30%, 3/8/22 150 154 2.85%, 11/9/22 (2) 100 100 SunTrust Bank, 2.25%, 1/31/20 40 40 2.75%, 5/1/23 350 346 SunTrust Banks, Inc., 2.35%, 11/1/18 25 25 2.50%, 5/1/19 200 202 US Bancorp, 1.95%, 11/15/18 200 201 4.13%, 5/24/21 200 214 3.00%, 3/15/22 115 117 2.95%, 7/15/22 1,200 1,211 2.38%, 7/22/26 1,000 934 Wells Fargo Bank N.A., 5.85%, 2/1/37 250 301 6.60%, 1/15/38 300 394 Wells Fargo Capital X, 5.95%, 12/15/36 100 107 21,517 Biotechnology 0.5% Amgen, Inc., 5.70%, 2/1/19 500 535 2.20%, 5/22/19 750 755 Biotechnology 0.5% 4.50%, 3/15/20 $425 $453 4.10%, 6/15/21 165 174 1.85%, 8/19/21 150 146 3.88%, 11/15/21 250 263 6.38%, 6/1/37 100 122 6.40%, 2/1/39 100 123 5.75%, 3/15/40 935 1,057 5.15%, 11/15/41 250 268 5.65%, 6/15/42 100 113 5.38%, 5/15/43 200 219 4.40%, 5/1/45 250 243 Baxalta, Inc., 2.88%, 6/23/20 370 375 5.25%, 6/23/45 625 683 Biogen, Inc., 2.90%, 9/15/20 200 204 4.05%, 9/15/25 95 98 5.20%, 9/15/45 100 108 Celgene Corp., 2.13%, 8/15/18 85 85 2.30%, 8/15/18 35 35 2.25%, 5/15/19 165 166 3.63%, 5/15/24 1,000 1,012 3.88%, 8/15/25 265 271 5.25%, 8/15/43 85 89 5.00%, 8/15/45 250 262 Gilead Sciences, Inc., 2.05%, 4/1/19 100 100 2.35%, 2/1/20 85 86 2.55%, 9/1/20 240 243 4.50%, 4/1/21 200 215 3.25%, 9/1/22 145 148 3.50%, 2/1/25 500 504 3.65%, 3/1/26 500 505 4.60%, 9/1/35 1,000 1,030 5.65%, 12/1/41 330 379 4.50%, 2/1/45 250 247 4.75%, 3/1/46 1,015 1,035 12,351 FIXED INCOME INDEX FUNDS 18 NORTHERN FUNDS ANNUAL REPORT

MARCH 31, 2017 Cable & Satellite 0.5% Charter Communications Operating LLC/Charter Communications Operating Capital, 4.46%, 7/23/22 $2,025 $2,135 4.91%, 7/23/25 1,285 1,358 Comcast Corp., 3.38%, 2/15/25 1,320 1,337 3.38%, 8/15/25 1,000 1,009 3.15%, 3/1/26 675 664 3.30%, 2/1/27 540 536 7.05%, 3/15/33 140 186 5.65%, 6/15/35 5 6 6.45%, 3/15/37 590 751 6.95%, 8/15/37 450 604 6.40%, 5/15/38 635 810 6.40%, 3/1/40 145 186 4.75%, 3/1/44 500 528 Time Warner Cable LLC, 8.75%, 2/14/19 300 335 6.55%, 5/1/37 145 166 7.30%, 7/1/38 705 874 6.75%, 6/15/39 130 150 Time Warner Entertainment Co. L.P., 8.38%, 7/15/33 260 347 11,982 Chemicals 0.4% Air Products & Chemicals, Inc., 3.00%, 11/3/21 300 308 2.75%, 2/3/23 250 250 Airgas, Inc., 2.90%, 11/15/22 150 150 3.65%, 7/15/24 70 72 Dow Chemical (The) Co., 4.25%, 11/15/20 155 164 4.13%, 11/15/21 200 212 3.00%, 11/15/22 100 101 7.38%, 11/1/29 100 136 4.25%, 10/1/34 150 150 9.40%, 5/15/39 300 473 5.25%, 11/15/41 400 438 4.38%, 11/15/42 500 492 E.I. du Pont de Nemours & Co., 4.63%, 1/15/20 185 198 Chemicals 0.4% 2.80%, 2/15/23 $630 $624 6.50%, 1/15/28 100 124 5.60%, 12/15/36 250 289 4.15%, 2/15/43 250 244 Eastman Chemical Co., 2.70%, 1/15/20 120 122 4.80%, 9/1/42 200 205 4.65%, 10/15/44 100 101 Lubrizol (The) Corp., 6.50%, 10/1/34 50 64 Monsanto Co., 5.13%, 4/15/18 240 248 2.20%, 7/15/22 65 62 5.50%, 8/15/25 50 56 4.20%, 7/15/34 55 55 5.88%, 4/15/38 256 297 4.40%, 7/15/44 250 243 Mosaic (The) Co., 3.75%, 11/15/21 1,000 1,030 5.45%, 11/15/33 250 262 4.88%, 11/15/41 100 93 PPG Industries, Inc., 2.30%, 11/15/19 250 252 Praxair, Inc., 1.25%, 11/7/18 150 149 4.50%, 8/15/19 400 424 4.05%, 3/15/21 100 106 2.45%, 2/15/22 250 250 2.20%, 8/15/22 150 147 2.70%, 2/21/23 250 249 3.55%, 11/7/42 125 119 Sherwin-Williams (The) Co., 4.55%, 8/1/45 30 30 Westlake Chemical Corp., 3.60%, 7/15/22 65 66 9,055 Commercial Finance 0.2% Air Lease Corp., 3.38%, 1/15/19 65 67 3.75%, 2/1/22 125 129 3.00%, 9/15/23 245 240 4.25%, 9/15/24 350 362 NORTHERN FUNDS ANNUAL REPORT 19 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS BOND INDEX FUND Commercial Finance 0.2% GATX Corp., 2.38%, 7/30/18 $35 $35 5.20%, 3/15/44 35 36 International Lease Finance Corp., 8.25%, 12/15/20 1,000 1,180 Private Export Funding Corp., 1.45%, 8/15/19 2,000 1,993 4,042 Communications Equipment 0.6% Apple, Inc., 2.10%, 5/6/19 220 222 2.15%, 2/9/22 250 248 2.85%, 2/23/23 340 343 2.40%, 5/3/23 275 271 3.00%, 2/9/24 1,665 1,679 3.45%, 5/6/24 3,555 3,674 2.50%, 2/9/25 55 53 3.25%, 2/23/26 1,030 1,041 2.45%, 8/4/26 500 473 3.35%, 2/9/27 370 375 3.85%, 5/4/43 230 220 4.45%, 5/6/44 250 259 3.45%, 2/9/45 250 223 Cisco Systems, Inc., 1.65%, 6/15/18 60 60 4.95%, 2/15/19 120 127 2.13%, 3/1/19 875 884 2.45%, 6/15/20 160 162 2.90%, 3/4/21 50 51 1.85%, 9/20/21 1,575 1,545 2.20%, 9/20/23 750 726 5.90%, 2/15/39 690 881 Juniper Networks, Inc., 4.60%, 3/15/21 100 107 5.95%, 3/15/41 100 107 13,731 Construction Materials Manufacturing 0.0% Martin Marietta Materials, Inc., 6.60%, 4/15/18 100 105 Construction Materials Manufacturing 0.0% Owens Corning, 4.20%, 12/15/22 $190 $199 3.40%, 8/15/26 400 387 691 Consumer Finance 0.4% American Express Co., 2.65%, 12/2/22 632 626 3.63%, 12/5/24 125 126 American Express Credit Corp., 1.80%, 7/31/18 500 501 1.70%, 10/30/19 325 323 2.38%, 5/26/20 300 302 2.25%, 5/5/21 1,180 1,169 Capital One Bank USA N.A., 2.25%, 2/13/19 300 300 2.30%, 6/5/19 300 301 Capital One Financial Corp., 2.45%, 4/24/19 500 503 4.75%, 7/15/21 131 141 3.75%, 4/24/24 1,000 1,017 Discover Financial Services, 4.10%, 2/9/27 200 200 Fidelity National Information Services, Inc., 2.00%, 4/15/18 40 40 Fiserv, Inc., 4.63%, 10/1/20 250 268 3.50%, 10/1/22 50 51 HSBC Finance Corp., 6.68%, 1/15/21 500 565 Mastercard, Inc., 2.00%, 11/21/21 130 129 Synchrony Financial, 2.70%, 2/3/20 250 251 3.70%, 8/4/26 1,000 970 Total System Services, Inc., 2.38%, 6/1/18 200 201 Visa, Inc., 2.20%, 12/14/20 500 501 2.80%, 12/14/22 1,250 1,261 FIXED INCOME INDEX FUNDS 20 NORTHERN FUNDS ANNUAL REPORT