Northern Multi-Manager International Equity Fund

N O R T H E R N F U N D S Northern Multi-Manager International Equity Fund 4Q'13 Attribution & Performance Please carefully read the prospectus and summary prospectus and consider the investment objectives, risks, charges and expenses of Northern Funds before investing. Call 800-595-9111 to obtain a prospectus and summary prospectus, which contains this and other information about the funds. 2013 Northern Funds northerntrust.com

Northern Multi-Manager International Fund (NMIEX) Sub-Adviser Target Allocations Altrinsic, 15% NFJ, 22% William Blair, 25% Northern Cross, 20% EARNEST, 18% Strategy Objectives: Add value through the combination of sub-advisers who are specialists in their respective styles. This approach should isolate the stock selection skills of the sub-advisers as the primary source of value added for the Fund over time. Leverage a disciplined and consistent research process to identify subadvisers who show high probability of success. Maintain the target allocations of the sub-advisers while continuously monitoring the style and characteristics of the Fund and sub-advisers to ensure that the Fund equally balances growth and value objectives while maintaining size (capitalization) characteristics similar to the Fund s market benchmark. By properly combining sub-advisers, we can reduce low conviction bets such as style and size and focus the risk of the portfolio on higher conviction bets the stock picking skills of the sub-advisers. Portfolio Characteristics: Well diversified portfolio, benchmarked to the MSCI All Country World ex US Index. The Fund currently uses five sub-advisers with various investment approaches. Due to the diversification that characterizes the Fund, it may lag during unusually strong up markets while providing good capital preservation in down markets. Style characteristics are designed to be neutral to the Index. 2 Northern Multi-Manager Int l Equity Fund: 4Q'13 performance review. See page 26 for important disclosure information.

Northern Multi-Manager International Equity Fund (NMIEX) Sub-Adviser Target Allocation Role in Portfolio William Blair & Company 25% Portfolio of companies showing superior growth at reasonable valuations. Process combines bottom-up fundamental analysis with a top-down strategic overlay. Northern Cross Investment Ltd. 20% Core manager focusing on companies that exhibit fundamental characteristics that may lead to margin expansion over the long term. Will provide larger cap focus. Altrinsic Global Advisors 15% Relative value style expected to protect capital in negative markets. Favors highquality, large-cap companies. NFJ Investment Group, LLC 22% Value manager with a focus on dividendpaying companies. EARNEST Partners, LLC 18% Combining quantitative techniques with dep fundamental research, this manager can provide exposure to mid- and small-cap companies with a bias towards value relative to the benchmark. 3 Northern Multi-Manager Int l Equity Fund: 4Q'13 performance review. See page 26 for important disclosure information.

Glossary Equity Risk: Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. International Risk: International investing involves increased risk and volatility. Weighted Average Market Capitalization: a firm s closing stock price multiplied by the number of shares. % EPS Growth past 5 years: a 5 year annualized earnings growth rate. Earnings per share is a part of a company's profit which is allocated to an individual outstanding share of common stock. As viewed by the investor, it is the rate of earnings which are returned on the original investment made. Also known as EPS for short, the earnings per share can be used to indicate a corporation's financial profitability. Positive Trailing P/E: the ratio of a firm s closing stock price and its trailing 12 months earnings per share, excluding those companies with negative earnings. A P/E ratio is generally used to provide investors with a better understanding of a company s value. Price to Book: a ratio used to compare a stock s market value to its book value. It is calculated by dividing the current price of the stock by the latest quarter s book value per share. The higher the ratio, the higher the premium the market is willing to pay for the company above its hard assets. MSCI ACWI (All Country World Index) ex US Index: is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. Sub-Adviser returns are calculated using the Monthly Modified-Dietz Returns method which is based upon a timeweighted cash flow analysis. In this method, the cash flows are weighted by the amount of time they are held (or absent) from the portfolio. 4 Northern Multi-Manager Int l Equity Fund: 4Q'13 performance review. See page 26 for important disclosure information.

Northern Multi-Manager International Equity Fund (NMIEX) Performance Performance as of December 31, 2013 Month Quarter YTD 1 Year 3 Years 5 Years Inception to Date 2012 2011 2010 2009 2008 Multi-Manager International Equity Fund - Inception 6/22/06 1.54 5.21 15.78 15.78 4.98 10.63 3.23 17.76-15.14 12.14 27.76-39.98 MSCI ACWI ex USA ND 0.88 4.77 15.29 15.29 5.14 12.81 4.63 16.83-13.71 11.15 41.45-45.53 Excess Return 0.66 0.44 0.49 0.49-0.16-2.18-1.40 0.93-1.44 0.99-13.69 5.55 Annual Expense Ratio: Gross, 1.45%; Net, 1.22% MSCI EAFE ND 1.50 5.71 22.78 22.78 8.17 12.44 4.13 17.32-12.14 7.75 31.78-43.38 Altrinsic - Inception 6/06 1.54 4.82 19.40 19.40 7.24 11.47 4.62 14.05-9.43 11.37 25.31-32.63 MSCI ACWI ex USA ND 0.88 4.77 15.29 15.29 5.14 12.81 4.63 16.83-13.71 11.15 41.45-45.53 Excess Return 0.66 0.06 4.12 4.12 2.10-1.34-0.02-2.78 4.27 0.22-16.14 12.89 NFJ - Inception 8/10 0.33 4.51 13.56 13.56 7.87 -- 9.86 21.91-9.33 -- -- -- MSCI ACWI ex USA ND 0.88 4.77 15.29 15.29 5.14 -- 7.50 16.83-13.71 -- -- -- Excess Return -0.55-0.26-1.73-1.73 2.73 -- 2.36 5.08 4.38 -- -- -- Northern Cross - Inception 3/12 2.26 4.88 17.29 17.29 -- -- 12.24 -- -- -- -- -- MSCI ACWI ex USA ND 0.88 4.77 15.29 15.29 -- -- 10.15 -- -- -- -- -- Excess Return 1.37 0.12 2.00 2.00 -- -- 2.10 -- -- -- -- -- Earnest Partners - Inception 6/12 1.53 5.45 13.54 13.54 -- -- 23.43 -- -- -- -- -- MSCI ACWI ex USA ND 0.88 4.77 15.29 15.29 -- -- 22.84 -- -- -- -- -- Excess Return 0.65 0.68-1.75 -- -- -- 0.59 -- -- -- -- -- William Blair - Inception 3/08 2.71 7.73 20.46 20.46 9.34 15.23 2.26 25.12-13.27 17.37 32.40 -- MSCI ACWI ex USA ND 0.88 4.77 15.29 15.29 5.14 12.81 1.19 16.83-13.71 11.15 41.45 -- Excess Return 1.83 2.97 5.17 5.17 4.20 2.41 1.07 8.29 0.44 6.22-9.05 -- Returns quoted represent past performance, which 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. Visit northernfunds.com for returns current to the most recent month-end. Since inception returns for periods greater than one year are annualized. Sub-adviser returns are represented gross of Fund expenses. Net expense ratio reflects voluntary expense reimbursements by the Fund s investment advisors that may be changed or terminated at any time. See the Appendix for additional disclosure about performance. Please see the Glossary slide for a discussion of the calculation method used for underlying sub-adviser performance. The Fund benchmark is the MSCI All Country World ex US Index. 5 Northern Multi-Manager Int l Equity Fund: 4Q'13 performance review. See page 26 for important disclosure information.

Northern Multi-Manager International Equity Fund (NMIEX) Quarterly Performance Attribution Sub-Adviser Target Allocations NFJ, 22% Northern Cross, 20% 0.50 0.40 0.45 0.35 Altrinsic, 15% EARNEST, 18% 0.30 0.20 0.10-0.10-0.20 0.22 0.01-0.05 0.07-0.01-0.09-0.15 0.13 0.06 0.04 0.02 0.02 0.01-0.01-0.01-0.07-0.11 William Blair, 25% Non-U.S. equity markets continued their advance with another strong quarter of performance as the MSCI ACWI ex-usa Index rose 4.8%. Europe led the way with a strong gain of 7.9% as continued economic improvements and a surprise interest rate cut by the European Central Bank boosted investor sentiment and led to further earnings-multiple expansion. Asian markets also showed strength during the fourth quarter, although returns were muted as the Japanese yen and Australian dollar both lost significant ground to the U.S. dollar. Emerging market equities as measured by the MSCI Emerging Markets Index underperformed developed markets, returning 1.8% during the fourth quarter. The Multi-Manager International Equity Fund finished ahead of the benchmark during the quarter with a return of 5.2% compared with the benchmark return of 4.8%. The Fund s underweight exposure to emerging markets contributed to its outperformance during the period. Stock selection in Canada and the U.K. also was strong. Fund performance in Continental Europe did not keep pace with the broad market move. For 2013, the Fund finished ahead of the benchmark, returning 15.8% compared with the MSCI ACWI ex-usa Index return of 15.3%. 0.50 0.40 0.30 0.20 0.10-0.10-0.20-0.30-0.40-0.50 0.25 0.09 Impact of Stock Selection 0.15 0.01-0.07-0.38 Impact of Stock Selection Impact of Sector Allocation 0.38 0.14 0.02-0.01 Impact of Regional Allocation 0.17 0.14 Sub-adviser results were within expectations during the quarter. The growth portfolio of William Blair was notably strong, benefiting from strong performance among U.K. and emerging market positions. Value sub-adviser NFJ underperformed, mainly due to sub-par returns in the Japanese market. 6 Northern Multi-Manager Int l Equity Fund: 4Q'13 performance review. See page 26 for important disclosure information.

Northern Multi-Manager International Equity Fund (NMIEX) Portfolio Characteristics International Fund MSCI ACWI ex US Benchmark Wtd Avg Market Cap $51 Billion $55.6 Billion % EPS Growth - Past 5 yrs. 7.94% 7.05% Positive Trailing P/E 16.2x 16.0x Price to Book 1.84% 1.72% Number of Holdings 405 1823 5 Largest Holdings % of Fund Roche Holdings Ag 2.0% Diageo 1.6% Axa 1.2% Royal Dutch Shell 1.1% Lloyds Banking Group 0.9% Total* 6.9% *The Total column may not sum exactly due to rounding. Portfolio composition may change at any time. 7 Northern Multi-Manager Int l Equity Fund: 4Q'13 performance review. See page 26 for important disclosure information.

Northern Multi-Manager International Equity Fund (NMIEX) Sector & Regional Exposures Economic Sectors International Fund MSCI ACWI ex US Benchmark Over/Under Consumer Discretionary 11.9% 10.8% 1.1% Consumer Staples 9.7% 9.9% -0.3% Energy 9.4% 9.4% 0.1% Financials 27.0% 26.7% 0.2% Healthcare 11.0% 7.8% 3.1% Industrials 12.5% 11.2% 1.3% Information Technology 7.4% 6.7% 0.7% Materials 6.6% 8.3% -1.7% Telecom Services 3.2% 5.8% -2.6% Utilities 1.2% 3.3% -2.2% Total* 100.0% 100.0% 0.0% MSCI ACWI Regions International Fund ex US Benchmark Over/Under Europe ex U.K. 36.7% 32.8% 3.9% U.K. 19.4% 15.8% 3.6% Japan 13.6% 15.1% -1.5% Pacific ex Japan 5.6% 8.6% -3.0% North America 8.4% 7.1% 1.3% Emerging Markets 16.0% 20.6% -4.5% Total* 100.0% 100.0% 0.0% *The Total columns may not sum exactly due to rounding. ** Ishares holdings due to initial funding by new sub-adviser. Portfolio composition may change at any time. 8 Northern Multi-Manager Int l Equity Fund: 4Q'13 performance review. See page 26 for important disclosure information.

N O R T H E R N F U N D S Sub-Adviser 4Q'13 Performance Review William Blair & Company Pages 10-12 Northern Cross Investments, Ltd. Pages 13-15 Altrinsic Global Advisors Pages 16-18 NFJ Investment Group Pages 19-21 EARNEST Partners, LLC Pages 22-24 9

William Blair & Company Quarterly Performance Attribution Sub-Adviser Target Allocations Altrinsic, 15% NFJ, 22% Northern Cross, 20% EARNEST, 18% 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20-0.20-0.40 1.32 0.13 0.01-0.15-0.31 0.08 1.19-0.02 0.23 0.42 0.02 0.11 0.18 0.09 0.02-0.01-0.18-0.04 William Blair, 25% Impact of Stock Selection Impact of Sector Allocation During the quarter, William Blair outperformed its benchmark, the MSCI ACWI ex-usa Index by 3.0%. Strong issue selection drove quarterly outperformance. Particular strength was demonstrated in the United Kingdom where strong selection coupled with an overweight allocation added to outperformance. Selections across the financials and consumer discretionary sectors were further additive while energy holdings were a detractor. The manager recently sold out of positions in Indonesia, Thailand, and Turkey citing concerns associated with the political uncertainty in these countries. Looking forward, the manager expects to maintain its exposure to India as the investment team sees opportunity for several high quality growth companies within the country. They are cautious on investments in Brazil given weak consumer indicators and high inflation estimates. The portfolio holds an overweight to the United Kingdom and an underweight to the emerging markets. 1.20 1.00 0.80 0.60 0.40 0.20-0.20 1.05 0.27 0.60 0.28 0.09 0.03-0.03-0.07-0.06-0.05 Impact of Stock Selection Impact of Regional Allocation 0.87 0.12 10 Northern Multi-Manager Int l Equity Fund: 4Q'13 performance review. See page 26 for important disclosure information.

William Blair & Company Portfolio Characteristics William Blair MSCI ACWI ex US Index Wtd Avg Market Cap $38.3 Billion $55.6 Billion % EPS Growth - Past 5 yrs. 12.76% 7.05% Positive Trailing P/E 17.8x 16.0x Price to Book 2.34% 1.72% Number of Holdings 217 1823 5 Largest Holdings % of Portfolio Bnp Paribas 2.6% Axa 2.5% Sumitomo Mitsui Financi 2.3% Prudential 2.2% Roche Holdings Ag 2.0% Total* 11.5% *The Total column may not sum exactly due to rounding. Portfolio composition may change at any time. 11 Northern Multi-Manager Int l Equity Fund: 4Q'13 performance review. See page 26 for important disclosure information.

William Blair & Company Sector & Regional Exposures Economic Sectors William Blair MSCI ACWI ex US Index Over/Under Consumer Discretionary 18.9% 10.8% 8.1% Consumer Staples 3.6% 9.9% -6.3% Energy 4.4% 9.4% -5.0% Financials 30.6% 26.7% 3.8% Healthcare 8.3% 7.8% 0.4% Industrials 17.3% 11.2% 6.1% Information Technology 10.6% 6.7% 4.0% Materials 0.8% 8.3% -7.5% Telecom Services 5.5% 5.8% -0.3% Utilities 0.0% 3.3% -3.3% Total* 100.0% 100.0% 0.0% Regions William Blair MSCI ACWI ex US Index Over/Under Europe ex U.K. 30.2% 32.8% -2.6% U.K. 25.2% 15.8% 9.4% Japan 16.8% 15.1% 1.7% Pacific ex Japan 7.5% 8.6% -1.9% North America 3.4% 7.1% -3.8% Emerging Markets 17.0% 20.6% -3.6% Total* 100.0% 100.0% -0.8% *The Total columns may not sum exactly due to rounding. Portfolio composition may change at any time. 12 Northern Multi-Manager Int l Equity Fund: 4Q'13 performance review. See page 26 for important disclosure information.

Northern Cross Investments Ltd. Quarterly Performance Attribution Sub-Adviser Target Allocations NFJ, 22% Northern Cross, 20% 1.00 0.80 0.60 0.76 Altrinsic, 15% EARNEST, 18% 0.40 0.20-0.20-0.40-0.60-0.06 0.20 0.09-0.17-0.41 0.05 0.02-0.01-0.10-0.25 0.09 0.14-0.08-0.10 0.09-0.19 William Blair, 25% During the quarter, Northern Cross outperformed the MSCI ACWI ex-usa Index by 0.1%. Impact of Stock Selection Impact of Sector Allocation Overall stock selection, primarily driven by the portfolio s financial holdings, was positive, while sector allocation was a detractor. From a regional perspective, the portfolio s overweight allocation to Continental Europe and underweight allocations to the emerging markets and Pacific ex Japan regions were the largest relative contributors to performance while selections within Europe hindered results. 1.50 1.00 0.50-0.50-1.00 0.02-0.06 0.98 0.15-0.22 0.25 0.05 0.18 0.02-0.15 0.44 The fundamental investment process of Northern Cross seeks to identify companies with strong and sustainable market positions, earnings predictability and sustainability. Looking forward, they believe their portfolio is well positioned to capture anticipated growth across markets. In their estimation, China will continue to grow, although at a slower pace, and will drive profits in many of the global companies in which they invest. Europe will continue to strengthen especially in some of the harder hit countries such as Spain. The portfolio closed the 2013 calendar year overweight to the consumer staples and industrial sectors with more modest overweight allocations to the materials, health care and consumer discretionary sectors. On a regional basis, the portfolio continues to be focused in Continental Europe with an approximate 63% allocation as of quarter-end. -1.50-1.58-2.00 Impact of Stock Selection Impact of Regional Allocation 13 Northern Multi-Manager Int l Equity Fund: 4Q'13 performance review. See page 26 for important disclosure information.

Northern Cross Investment Ltd. Portfolio Characteristics Northern Cross MSCI ACWI ex US Index Wtd Avg Market Cap $67.4 Billion $55.6 Billion % EPS Growth - Past 5 yrs. 6.83% 7.05% Positive Trailing P/E 18.1x 16.0x Price to Book 1.92% 1.72% Number of Holdings 72 1823 5 Largest Holdings % of Portfolio Banco Bilbao Vizcaya Ar 3.0% Axa 2.9% Roche Holdings Ag 2.7% Lloyds Banking Group 2.6% Allianz Se 2.4% Total* 13.7% *The Total column may not sum exactly due to rounding. Portfolio composition may change at any time. 14 Northern Multi-Manager Int l Equity Fund: 4Q'13 performance review. See page 26 for important disclosure information.

Northern Cross Investment Ltd. Sector & Regional Exposures Economic Sectors Northern Cross MSCI ACWI ex US Index Over/Under Consumer Discretionary 11.3% 10.8% 0.5% Consumer Staples 16.7% 9.9% 6.8% Energy 4.7% 9.4% -4.6% Financials 24.9% 26.7% -1.8% Healthcare 9.7% 7.8% 1.9% Industrials 18.1% 11.2% 6.9% Information Technology 3.7% 6.7% -3.0% Materials 10.8% 8.3% 2.5% Telecom Services 0.0% 5.8% -5.8% Utilities 0.0% 3.3% -3.3% Total* 100.0% 100.0% 0.0% Regions Northern Cross MSCI ACWI ex US Index Over/Under Europe ex U.K. 62.6% 32.8% 29.8% U.K. 16.7% 15.8% 0.9% Japan 8.8% 15.1% -6.3% Pacific ex Japan 3.2% 8.6% -5.4% North America 3.3% 7.1% -3.8% Emerging Markets 5.5% 20.6% -15.1% Total* 100.0% 100.0% 0.0% *The Total columns may not sum exactly due to rounding. Portfolio composition may change at any time. 15 Northern Multi-Manager Int l Equity Fund: 4Q'13 performance review. See page 26 for important disclosure information.

Altrinsic Global Advisors Quarterly Performance Attribution Sub-Adviser Target Allocations Altrinsic, 15% NFJ, 22% Northern Cross, 20% EARNEST, 18% 0.80 0.60 0.40 0.20-0.20-0.40-0.60 0.71 0.11-0.17 0.22-0.03-0.10-0.37 0.18 0.24 0.04-0.01-0.12-0.23-0.34 0.06 0.01 0.02-0.08 William Blair, 25% Altrinsic Global Advisors performed in-line with its benchmark, the MSCI ACWI ex-usa Index. Impact of Stock Selection Impact of Sector Allocation Overall stock selection was additive while sector allocation detracted from the quarter s performance. The portfolio s exposure to gold miners was a detractor in the materials sector as gold prices fell. Limited exposure to European financials, particularly banks, resulted in a shortfall within the financials sector. The portfolio also underperformed within the health care and information technology sectors. Media and auto exposure was of benefit within the consumer discretionary sector. Strong stock selection within the industrials sector also added value. Most of the portfolio s shortfall during the quarter came from holdings in Europe and the U.K., meanwhile relative strength was exhibited within Japan. 1.00 0.50-0.50-1.00-1.50-0.05-0.41 0.16-1.02 0.83-0.21 0.21-0.07 0.26-0.07 0.04 0.50 Altrinsic believes that too much confidence is being placed on the shoulders of central bankers globally and in particular Europe. They believe that the excessive leverage in the European banking system poses a significant risk. As a result, they have maintained their exposure to insurance companies across regions and banks within Asia. Improved capital allocation practices, supply constraints and compelling valuations contribute to Altrinsic s thesis for holding gold mining stocks. Their exposure in the energy sector is predicated on similar reasons as for gold miners, but with a stronger emphasis on the impact that supply constraints may have on the industry in the long-term. Impact of Stock Selection Impact of Regional Allocation 16 Northern Multi-Manager Int l Equity Fund: 4Q'13 performance review. See page 26 for important disclosure information.

Altrinsic Global Advisors Portfolio Characteristics Altrinsic MSCI ACWI ex US Index Wtd Avg Market Cap $61.6 Billion $55.6 Billion % EPS Growth - Past 5 yrs. 2.39% 7.05% Positive Trailing P/E 18.5x 16.0x Price to Book 1.74% 1.72% Number of Holdings 64 1823 5 Largest Holdings % of Portfolio Deutsche Boerse Ag 3.5% Sumitomo Mitsui Trust H 3.2% Bank Of Yokohama 3.2% Sanofi 3.1% Roche Holdings Ag 3.1% Total* 16.0% *The Total column may not sum exactly due to rounding. Portfolio composition may change at any time. 17 Northern Multi-Manager Int l Equity Fund: 4Q'13 performance review. See page 26 for important disclosure information.

Altrinsic Global Advisors Sector & Regional Exposures Economic Sectors Altrinsic MSCI ACWI ex US Index Over/Under Consumer Discretionary 9.5% 10.8% -1.3% Consumer Staples 17.0% 9.9% 7.1% Energy 10.5% 9.4% 1.2% Financials 24.5% 26.7% -2.3% Healthcare 16.3% 7.8% 8.5% Industrials 9.8% 11.2% -1.4% Information Technology 2.4% 6.7% -4.2% Materials 5.0% 8.3% -3.4% Telecom Services 3.9% 5.8% -2.0% Utilities 1.1% 3.3% -2.2% Total* 100.0% 100.0% 0.0% Regions Altrinsic MSCI ACWI ex US Index Over/Under Europe ex U.K. 37.2% 32.8% 4.5% U.K. 13.2% 15.8% -2.7% Japan 23.4% 15.1% 8.3% Pacific ex Japan 3.3% 8.6% -5.3% North America 18.8% 7.1% 11.7% Emerging Markets 4.0% 20.6% -16.5% Total* 100.0% 100.0% 0.0% *The Total columns may not sum exactly due to rounding. Portfolio composition may change at any time. 18 Northern Multi-Manager Int l Equity Fund: 4Q'13 performance review. See page 26 for important disclosure information.

NFJ Investment Group, LLC Quarterly Performance Attribution Sub-Adviser Target Allocations NFJ, 22% Northern Cross, 20% 0.60 0.40 0.20-0.20 0.41 0.32-0.03-0.15-0.11 0.32 0.14-0.01-0.01-0.04 0.19 0.01 0.04 0.01-0.02-0.01 Altrinsic, 15% EARNEST, 18% -0.40-0.60-0.54-0.80-0.68 William Blair, 25% NFJ trailed its benchmark, the MSCI ACWI ex-usa Index by 0.3% for the quarter. Poor issue selection across geographies was highlighted by demonstrated weakness in Japanese materials, industrials and consumer discretionary sectors. With an overweight allocation to the lagging emerging markets and an underweight allocation to the stronger performing Continental Europe region, the portfolio s allocation across geographies limited quarterly performance. By sector, stock selection was essentially flat with weakness in materials and industrials offset by strength in energy, consumer staples, and technology. Allocation effects were a slight detractor, namely the slight underweight to technology and the slight overweight to telecoms. Looking ahead to 2014, NFJ expects greater dispersion and differentiation among stocks as companies will now need to deliver earnings growth following a period of multiple expansion in 2013. This should lead, in their expectation, to an ideal environment for stock pickers. Despite the rallies in Europe and Japan, NFJ still sees overall valuations as reasonable, particularly for emerging markets companies. Impact of Stock Selection Impact of Sector Allocation 0.60 0.40 0.31 0.37 0.20 0.13 0.13 0.14 0.01 0.04-0.20-0.02-0.02-0.15-0.40-0.24-0.60-0.80-1.00-0.87 Impact of Stock Selection Impact of Regional Allocation 19 Northern Multi-Manager Int l Equity Fund: 4Q'13 performance review. See page 26 for important disclosure information.

NFJ Investment Group, LLC Portfolio Characteristics NFJ MSCI ACWI ex US Index Wtd Avg Market Cap $52.7 Billion $55.6 Billion % EPS Growth - Past 5 yrs. 8.83% 7.05% Positive Trailing P/E 12.0x 16.0x Price to Book 1.50% 1.72% Number of Holdings 60 1823 5 Largest Holdings % of Portfolio Astrazeneca 3.4% Zurich Insurance Group 3.4% Royal Dutch Shell 3.3% Sasol Ltd 3.1% Sabesp Cia Saneame 2.6% Total* 15.8% *The Total column may not sum exactly due to rounding. Portfolio composition may change at any time. 20 Northern Multi-Manager Int l Equity Fund: 4Q'13 performance review. See page 26 for important disclosure information.

NFJ Investment Group, LLC Sector & Regional Exposures Economic Sectors NFJ MSCI ACWI ex US Index Over/Under Consumer Discretionary 9.2% 10.8% -1.6% Consumer Staples 10.5% 9.9% 0.6% Energy 13.1% 9.4% 3.7% Financials 28.5% 26.7% 1.8% Healthcare 7.7% 7.8% -0.2% Industrials 8.6% 11.2% -2.6% Information Technology 5.7% 6.7% -1.0% Materials 7.2% 8.3% -1.1% Telecom Services 4.9% 5.8% -1.0% Utilities 4.7% 3.3% 1.4% Total* 100.0% 100.0% 0.0% Regions NFJ MSCI ACWI ex US Index Over/Under Europe ex U.K. 24.0% 32.8% -8.7% U.K. 23.0% 15.8% 7.1% Japan 11.2% 15.1% -3.9% Pacific ex Japan 8.2% 8.6% -0.4% North America 10.7% 7.1% 3.5% Emerging Markets 22.9% 20.6% 2.4% Total* 100.0% 100.0% 0.0% *The Total columns may not sum exactly due to rounding. Portfolio composition may change at any time. 21 Northern Multi-Manager Int l Equity Fund: 4Q'13 performance review. See page 26 for important disclosure information.

EARNEST Partners, LLC Quarterly Performance Attribution Sub-Adviser Target Allocations NFJ, 22% Altrinsic, 15% William Blair, 25% Northern Cross, 20% EARNEST, 18% 0.80 0.60 0.40 0.20-0.20-0.40-0.60-0.80 0.33-0.10 0.14 0.72 0.19-0.01-0.11-0.34-0.60 0.39 0.18-0.02-0.70 0.59 0.09-0.02-0.05-0.16 0.07-0.05 During the quarter, EARNEST Partners outperformed its benchmark, the MSCI ACWI ex-usa Index by 0.7%. Impact of Stock Selection Impact of Sector Allocation Overall stock selection, led by the portfolio s energy, materials and technology holdings, was positive. Selections within health care and industrials detracted from performance. Positive stock selection across geographies, particularly within Japan and the U.K, were partially offset by an overweight allocation to emerging markets during the quarter. The underperformance of the emerging markets relative to global markets has resulted in valuations that have become, in EARNEST s opinion, increasingly attractive. Elsewhere, EARNEST believes the proposed sales tax increase in Japan will pose a headwind to near-term economic activity and, as a result, potentially offset the economic growth that was generated through the government s monetary stimulus. Such a result would mark the end to four straight quarters of economic growth in the country. As of quarter end the portfolio was underweight to Japan. 1.00 0.80 0.60 0.40 0.20-0.20-0.40-0.60-0.80-1.00 0.82 0.49 0.35 0.16 0.15 0.02-0.04-0.02-0.02-0.80 Impact of Stock Selection Impact of Regional Allocation -0.26-0.33 22 Northern Multi-Manager Int l Equity Fund: 4Q'13 performance review. See page 26 for important disclosure information.

EARNEST Partners, LLC Portfolio Characteristics Earnest MSCI ACWI ex US Index Wtd Avg Market Cap $40.4 Billion $55.6 Billion % EPS Growth - Past 5 yrs. 5.82% 7.05% Positive Trailing P/E 17.5x 16.0x Price to Book 1.82% 1.72% Number of Holdings 52 1823 5 Largest Holdings % of Portfolio Arm Hldgs Plc 4.8% Core Laboratories N 4.8% Shire 3.8% Icici Bk Ltd 3.7% Denso Corp 3.5% Total* 20.6% *The Total column may not sum exactly due to rounding. Portfolio composition may change at any time. 23 Northern Multi-Manager Int l Equity Fund: 4Q'13 performance review. See page 26 for important disclosure information.

EARNEST Partners, LLC Sector & Regional Exposures Economic Sectors Earnest MSCI ACWI ex US Index Over/Under Consumer Discretionary 7.8% 10.8% -3.1% Consumer Staples 3.6% 9.9% -6.3% Energy 16.4% 9.4% 7.1% Financials 24.2% 26.7% -2.6% Healthcare 15.7% 7.8% 7.9% Industrials 6.5% 11.2% -4.7% Information Technology 12.9% 6.7% 6.2% Materials 10.9% 8.3% 2.6% Telecom Services 1.0% 5.8% -4.8% Utilities 0.0% 3.3% -3.3% Total* 100.0% 100.0% 0.0% Regions Earnest MSCI ACWI ex US Index Over/Under Europe ex U.K. 32.0% 32.8% -0.8% U.K. 14.8% 15.8% -1.0% Japan 9.3% 15.1% -5.8% Pacific ex Japan 5.6% 8.6% -3.0% North America 10.3% 7.1% 3.2% Emerging Markets 27.9% 20.6% 7.3% Total* 100.0% 100.0% 0.0% *The Total columns may not sum exactly due to rounding. ** Ishares holdings due to initial funding. Portfolio composition may change at any time. 24 Northern Multi-Manager Int l Equity Fund: 4Q'13 performance review. See page 26 for important disclosure information.

N O R T H E R N F U N D S Appendix Disclosure of additional information 25

Appendix: Disclosures Past performance does not guarantee future results. Total return is based on net change in NAV, assuming reinvestment of all distributions. Since inception returns for funds less than one year old are not annualized. Sub-adviser returns are represented gross of Fund expenses. Returns of an index do not reflect the deduction of any management fees, transaction costs or other expenses. Direct investment in an index is not possible. This presentation is provided for informational purposes only and does not constitute an offer or solicitation to purchase or sell any funds. Information should not be considered investment advice, a recommendation to buy or sell any security or an endorsement of any underlying sub-advisers investment strategies. There is no assurance that the securities discussed are still in the Funds or that securities sold have not been repurchased. It should not be assumed that any of the securities transactions or holdings discussed was or will be profitable, or that the investment decisions made in the future will be profitable or will equal the investment performance of the securities discussed herein. Portfolio sector and characteristics comparisons are provided to illustrate sector allocations and characteristics for each Fund/sub-adviser s strategy versus their respective benchmarks as of the date indicated. The information in this presentation reflects prevailing market conditions and our judgment as of this date, which are subject to change. In preparing this presentation we have relied upon and assumed without independent verification, the accuracy and completeness of all information available from public sources. Opinions expressed are those of the authors or individual investment managers and may not reflect the opinions of Northern Trust Corporation or its subsidiaries. Information is subject to change without notice. Any person relying upon this information shall be solely responsible for the consequences of such reliance. All indexes are the exclusive property of their respective owners, all rights reserved. Northern Trust Asset Management comprises Northern Trust Investments, Inc., Northern Trust Global Investments Limited, Northern Trust Global Investments Japan, K.K.,NT Global Advisors, Inc. and investment personnel of The Northern Trust Company of Hong Kong Limited and The Northern Trust Company. Shares of Northern Funds are distributed by Northern Funds Distributors, LLC, not affiliated with Northern Trust. 26 Northern Multi-Manager Int l Equity Fund: 4Q'13 performance review. See page 26 for important disclosure information.