Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-08236
Northern Funds
(Exact name of registrant as specified in charter)
50 South LaSalle Street
Chicago, IL 60603
(Address of principal executive offices) (Zip code)
Lloyd A. Wennlund, President
Northern Funds
50 South LaSalle Street
Chicago, IL 60603
(Name and address of agent for service)
Registrant’s telephone number, including area code: (312) 557-2790
Date of fiscal year end: March 31
Date of reporting period: September 30, 2014
Table of Contents
Item 1. Reports to Stockholders.
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Table of Contents
EQUITY FUNDS
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The 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.
The recent volatility in the stock market has produced short-term returns that are not typical and may not continue in the future. Because of ongoing market volatility, Northern Funds’ performance may be subject to substantial short-term changes.
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 forward-looking 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.
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 SEMIANNUAL REPORT | 1 | EQUITY FUNDS |
Table of Contents
EQUITY FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
Amounts in thousands, except per share data | INCOME EQUITY FUND | INTERNATIONAL EQUITY FUND | LARGE CAP CORE FUND | LARGE CAP EQUITY FUND | LARGE CAP GROWTH FUND | |||||||||||||||
ASSETS: | ||||||||||||||||||||
Investments, at cost(1) | $329,277 | $196,610 | $25,956 | $100,773 | $71,640 | |||||||||||||||
Investments, at value(2) | $349,552 | $247,098 | $30,350 | $145,785 | $99,959 | |||||||||||||||
Foreign currencies, at value | – | 3,052 | – | – | – | |||||||||||||||
Dividend income receivable | 1,166 | 394 | 39 | 142 | 35 | |||||||||||||||
Receivable for foreign tax reclaimable | – | 1,403 | – | – | – | |||||||||||||||
Receivable for securities sold | 19,012 | – | – | 1,550 | – | |||||||||||||||
Receivable for fund shares sold | 127 | 1,146 | 157 | 19 | 13 | |||||||||||||||
Receivable from investment adviser | 10 | 5 | 3 | 3 | 4 | |||||||||||||||
Prepaid and other assets | 7 | 5 | 4 | 4 | 4 | |||||||||||||||
Total Assets | 369,874 | 253,103 | 30,553 | 147,503 | 100,015 | |||||||||||||||
LIABILITIES: | ||||||||||||||||||||
Payable for securities purchased | 12,399 | 15 | – | 1,073 | – | |||||||||||||||
Payable for variation margin on futures contracts | – | – | 4 | – | – | |||||||||||||||
Payable for fund shares redeemed | 332 | 142 | – | 50 | 36 | |||||||||||||||
Payable to affiliates: | ||||||||||||||||||||
Management fees (Note 5) | 56 | 42 | 2 | 20 | 14 | |||||||||||||||
Custody and accounting fees | – | 7 | 2 | 6 | 7 | |||||||||||||||
Shareholder servicing fees | 41 | 5 | – | 3 | 7 | |||||||||||||||
Transfer agent fees | 1 | 1 | – | – | – | |||||||||||||||
Trustee fees | 6 | 14 | 5 | 12 | 10 | |||||||||||||||
Accrued other liabilities | 20 | 29 | 18 | 22 | 19 | |||||||||||||||
Total Liabilities | 12,855 | 255 | 31 | 1,186 | 93 | |||||||||||||||
Net Assets | $357,019 | $252,848 | $30,522 | $146,317 | $99,922 | |||||||||||||||
ANALYSIS OF NET ASSETS: | ||||||||||||||||||||
Capital stock | $251,661 | $347,228 | $42,112 | $113,658 | $48,808 | |||||||||||||||
Accumulated undistributed net investment income (loss) | (4,124 | ) | 8,522 | 11 | 30 | (108 | ) | |||||||||||||
Accumulated undistributed net realized gain (loss) | 89,207 | (153,198 | ) | (15,981 | ) | (12,383 | ) | 22,903 | ||||||||||||
Net unrealized appreciation | 20,275 | 50,296 | 4,380 | 45,012 | 28,319 | |||||||||||||||
Net Assets | $357,019 | $252,848 | $30,522 | $146,317 | $99,922 | |||||||||||||||
Shares Outstanding ($.0001 par value, unlimited authorization) | 22,419 | 25,991 | 2,058 | 6,985 | 3,028 | |||||||||||||||
Net Asset Value, Redemption and Offering Price Per Share | $15.93 | $9.73 | $14.83 | $20.95 | $33.00 |
(1) | Amounts include cost from the Diversified Assets Portfolio of the Northern Institutional Funds of $1,680, $4,171, $1,636, $1,010, $1,709, $1,601, $7,594, $83,371 and $1,476, respectively. |
(2) | Amounts include value from the Diversified Assets Portfolio of the Northern Institutional Funds of $1,680, $4,171, $1,636, $1,010, $1,709, $1,601, $7,594, $83,371 and $1,476, respectively. |
See Notes to the Financial Statements.
EQUITY FUNDS | 2 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SEPTEMBER 30, 2014 (UNAUDITED) |
LARGE CAP VALUE FUND | SMALL CAP CORE FUND | SMALL CAP VALUE FUND | TECHNOLOGY FUND | |||||||||||
$98,573 | $128,858 | $1,891,962 | $60,014 | |||||||||||
$106,932 | $182,581 | $2,491,099 | $77,408 | |||||||||||
– | – | – | – | |||||||||||
121 | 176 | 4,310 | 46 | |||||||||||
– | – | – | – | |||||||||||
– | 102 | 17,538 | 1,003 | |||||||||||
25 | 147 | 2,033 | – | |||||||||||
4 | 4 | 100 | 2 | |||||||||||
13 | 10 | 12 | 9 | |||||||||||
107,095 | 183,020 | 2,515,092 | 78,468 | |||||||||||
– | – | 17,688 | – | |||||||||||
4 | 109 | 1,010 | – | |||||||||||
13 | 131 | 1,093 | 43 | |||||||||||
15 | 23 | 395 | 14 | |||||||||||
– | 2 | 47 | 3 | |||||||||||
13 | 2 | 872 | 7 | |||||||||||
– | 1 | 6 | – | |||||||||||
10 | 6 | 9 | 7 | |||||||||||
15 | 26 | 160 | 25 | |||||||||||
70 | 300 | 21,280 | 99 | |||||||||||
$107,025 | $182,720 | $2,493,812 | $78,369 | |||||||||||
$171,788 | $116,850 | $1,760,669 | $64,762 | |||||||||||
2,352 | 841 | 17,169 | (311 | ) | ||||||||||
(75,450 | ) | 11,647 | 120,514 | (3,476 | ) | |||||||||
8,335 | 53,382 | 595,460 | 17,394 | |||||||||||
$107,025 | $182,720 | $2,493,812 | $78,369 | |||||||||||
7,881 | 8,990 | 124,120 | 3,676 | |||||||||||
$13.58 | $20.33 | $20.09 | $21.32 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 3 | EQUITY FUNDS |
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EQUITY FUNDS
STATEMENTS OF OPERATIONS
Amounts in thousands | INCOME EQUITY FUND | INTERNATIONAL EQUITY FUND | LARGE CAP CORE FUND | LARGE CAP EQUITY FUND | LARGE CAP GROWTH FUND | |||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||
Dividend income | $5,563 | (1)(2) | $4,518 | (1) | $327 | (3) | $1,348 | (1) | $393 | (1) | ||||||||||
Interest income | 638 | – | – | – | – | |||||||||||||||
Total Investment Income | 6,201 | 4,518 | 327 | 1,348 | 393 | |||||||||||||||
EXPENSES: | ||||||||||||||||||||
Management fees (Note 5) | 902 | 667 | 33 | 316 | 220 | |||||||||||||||
Investment advisory fees (Note 5) | 827 | 575 | 20 | 271 | 217 | |||||||||||||||
Administration fees (Note 5) | 146 | 96 | 10 | 54 | 43 | |||||||||||||||
Custody fees | 26 | 135 | 23 | 16 | 20 | |||||||||||||||
Accounting fees | 15 | 11 | 6 | 9 | 8 | |||||||||||||||
Transfer agent fees | 111 | 74 | 8 | 42 | 33 | |||||||||||||||
Blue sky fees | 12 | 11 | 9 | 10 | 9 | |||||||||||||||
SEC fees | 2 | 2 | 2 | 2 | 2 | |||||||||||||||
Printing fees | 24 | 19 | 19 | 19 | 20 | |||||||||||||||
Audit fees | 9 | 9 | 9 | 9 | 9 | |||||||||||||||
Legal fees | 8 | 8 | 8 | 8 | 8 | |||||||||||||||
Shareholder servicing fees | 186 | 14 | – | 10 | 20 | |||||||||||||||
Trustee fees | 9 | 9 | 9 | 9 | 9 | |||||||||||||||
Other | 5 | 14 | 5 | 5 | 5 | |||||||||||||||
Total Expenses | 2,282 | 1,644 | 161 | 780 | 623 | |||||||||||||||
Less expenses reimbursed by investment adviser | (356 | ) | (246 | ) | (72 | ) | (144 | ) | (148 | ) | ||||||||||
Net Expenses | 1,926 | 1,398 | 89 | 636 | 475 | |||||||||||||||
Net Investment Income (Loss) | 4,275 | 3,120 | 238 | 712 | (82 | ) | ||||||||||||||
NET REALIZED AND UNREALIZED GAINS (LOSSES): | ||||||||||||||||||||
Net realized gains (losses) on: | ||||||||||||||||||||
Investments | 83,567 | 1,729 | 777 | 2,888 | 27,062 | |||||||||||||||
Futures contracts | – | – | 62 | – | – | |||||||||||||||
Foreign currency transactions | – | (46 | ) | – | – | – | ||||||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||||||
Investments | (75,984 | ) | (13,264 | ) | 565 | 3,437 | (23,398 | ) | ||||||||||||
Futures contracts | – | – | (20 | ) | – | – | ||||||||||||||
Foreign currency translations | – | (251 | ) | – | – | – | ||||||||||||||
Net Gains (Losses) | 7,583 | (11,832 | ) | 1,384 | 6,325 | 3,664 | ||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $11,858 | $(8,712 | ) | $1,622 | $7,037 | $3,582 |
(1) | Amount includes dividend income from the Diversified Assets Portfolio of the Northern Institutional Funds of less than $1. |
(2) | Net of $35 in non-reclaimable foreign withholding taxes. |
(3) | Amount includes dividend income from the Diversified Assets Portfolio of the Northern Institutional Funds of $1. |
(4) | Amount includes dividend income from the Diversified Assets Portfolio of the Northern Institutional Funds of $5. |
See Notes to the Financial Statements.
EQUITY FUNDS | 4 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SIX MONTHS ENDED SEPTEMBER 30, 2014 (UNAUDITED) |
LARGE CAP VALUE FUND | SMALL CAP CORE FUND | SMALL CAP VALUE FUND | TECHNOLOGY FUND | |||||||||||
$1,311 | (1) | $1,290 | (1) | $26,566 | (4) | $310 | (1) | |||||||
– | – | 1 | – | |||||||||||
1,311 | 1,290 | 26,567 | 310 | |||||||||||
231 | 353 | 6,344 | 223 | |||||||||||
226 | 386 | 5,480 | 190 | |||||||||||
40 | 68 | 967 | 28 | |||||||||||
12 | 17 | 187 | 13 | |||||||||||
8 | 9 | 69 | 7 | |||||||||||
31 | 53 | 745 | 22 | |||||||||||
10 | 10 | 30 | 10 | |||||||||||
2 | 2 | 6 | 2 | |||||||||||
22 | 20 | 136 | 21 | |||||||||||
9 | 9 | 14 | 9 | |||||||||||
8 | 8 | 14 | 8 | |||||||||||
39 | 13 | 2,970 | 24 | |||||||||||
9 | 9 | 28 | 9 | |||||||||||
5 | 5 | 14 | 5 | |||||||||||
652 | 962 | 17,004 | 571 | |||||||||||
(184 | ) | (259 | ) | (3,879 | ) | (76 | ) | |||||||
468 | 703 | 13,125 | 495 | |||||||||||
843 | 587 | 13,442 | (185 | ) | ||||||||||
27,329 | 7,794 | 100,988 | 2,975 | |||||||||||
(5 | ) | 25 | 330 | – | ||||||||||
– | – | – | – | |||||||||||
(23,421 | ) | (15,807 | ) | (240,104 | ) | 32 | ||||||||
(24 | ) | (328 | ) | (3,237 | ) | – | ||||||||
– | – | – | – | |||||||||||
3,879 | (8,316 | ) | (142,023 | ) | 3,007 | |||||||||
$4,722 | $(7,729 | ) | $(128,581 | ) | $2,822 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 5 | EQUITY FUNDS |
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EQUITY FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
INCOME EQUITY FUND | INTERNATIONAL EQUITY FUND | LARGE CAP CORE FUND | LARGE CAP EQUITY FUND | |||||||||||||||||||||||||||||
Amounts in thousands | SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | ||||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | $4,275 | $7,388 | $3,120 | $7,878 | $238 | $297 | $712 | $1,501 | ||||||||||||||||||||||||
Net realized gains | 83,567 | 15,516 | 1,683 | 16,968 | 839 | 2,268 | 2,888 | 12,969 | ||||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) | (75,984 | ) | 28,883 | (13,515 | ) | 22,793 | 545 | 1,421 | 3,437 | 13,801 | ||||||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 11,858 | 51,787 | (8,712 | ) | 47,639 | 1,622 | 3,986 | 7,037 | 28,271 | |||||||||||||||||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||||||||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | (36,825 | ) | (2,108 | ) | 8,327 | (49,604 | ) | 3,573 | 9,297 | (6,858 | ) | (29,036 | ) | |||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions | (36,825 | ) | (2,108 | ) | 8,327 | (49,604 | ) | 3,573 | 9,297 | (6,858 | ) | (29,036 | ) | |||||||||||||||||||
DISTRIBUTIONS PAID: | ||||||||||||||||||||||||||||||||
From net investment income | (8,630 | ) | (5,841 | ) | – | (4,000 | ) | (226 | ) | (294 | ) | (702 | ) | (1,508 | ) | |||||||||||||||||
From net realized gains | – | (13,645 | ) | – | (722 | ) | – | – | – | (28 | ) | |||||||||||||||||||||
Total Distributions Paid | (8,630 | ) | (19,486 | ) | – | (4,722 | ) | (226 | ) | (294 | ) | (702 | ) | (1,536 | ) | |||||||||||||||||
Total Increase (Decrease) in Net Assets | (33,597 | ) | 30,193 | (385 | ) | (6,687 | ) | 4,969 | 12,989 | (523 | ) | (2,301 | ) | |||||||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||||||||||
Beginning of period | 390,616 | 360,423 | 253,233 | 259,920 | 25,553 | 12,564 | 146,840 | 149,141 | ||||||||||||||||||||||||
End of period | $357,019 | $390,616 | $252,848 | $253,233 | $30,522 | $25,553 | $146,317 | $146,840 | ||||||||||||||||||||||||
Accumulated Undistributed Net Investment Income (Loss) | $(4,124 | ) | $231 | $8,522 | $5,402 | $11 | $(1 | ) | $30 | $20 |
See Notes to the Financial Statements.
EQUITY FUNDS | 6 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2014 (UNAUDITED) |
OR THE FISCAL YEAR ENDED MARCH 31, 2014
LARGE CAP GROWTH FUND | LARGE CAP VALUE FUND | SMALL CAP CORE FUND | SMALL CAP VALUE FUND | TECHNOLOGY FUND | ||||||||||||||||||||||||||||||||||
SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | |||||||||||||||||||||||||||||
$(82 | ) | $206 | $843 | $3,179 | $587 | $907 | $13,442 | $20,393 | $(185 | ) | $(462 | ) | ||||||||||||||||||||||||||
27,062 | 27,262 | 27,324 | 11,652 | 7,819 | 18,666 | 101,318 | 177,770 | 2,975 | 8,584 | |||||||||||||||||||||||||||||
(23,398 | ) | 5,120 | (23,445 | ) | 7,065 | (16,135 | ) | 25,858 | (243,341 | ) | 308,775 | 32 | 6,372 | |||||||||||||||||||||||||
3,582 | 32,588 | 4,722 | 21,896 | (7,729 | ) | 45,431 | (128,581 | ) | 506,938 | 2,822 | 14,494 | |||||||||||||||||||||||||||
(56,351 | ) | (77,206 | ) | (6,596 | ) | (18,611 | ) | 1,210 | (54,261 | ) | (19,039 | ) | 239,380 | (6,146 | ) | (12,355 | ) | |||||||||||||||||||||
(56,351 | ) | (77,206 | ) | (6,596 | ) | (18,611 | ) | 1,210 | (54,261 | ) | (19,039 | ) | 239,380 | (6,146 | ) | (12,355 | ) | |||||||||||||||||||||
– | (300 | ) | – | (2,160 | ) | – | (600 | ) | – | (18,500 | ) | – | – | |||||||||||||||||||||||||
– | – | – | – | – | (13,890 | ) | – | (163,239 | ) | – | – | |||||||||||||||||||||||||||
– | (300 | ) | – | (2,160 | ) | – | (14,490 | ) | – | (181,739 | ) | – | – | |||||||||||||||||||||||||
(52,769 | ) | (44,918 | ) | (1,874 | ) | 1,125 | (6,519 | ) | (23,320 | ) | (147,620 | ) | 564,579 | (3,324 | ) | 2,139 | ||||||||||||||||||||||
152,691 | 197,609 | 108,899 | 107,774 | 189,239 | 212,559 | 2,641,432 | 2,076,853 | 81,693 | 79,554 | |||||||||||||||||||||||||||||
$99,922 | $152,691 | $107,025 | $108,899 | $182,720 | $189,239 | $2,493,812 | $2,641,432 | $78,369 | $81,693 | |||||||||||||||||||||||||||||
$(108 | ) | $(26 | ) | $2,352 | $1,509 | $841 | $254 | $17,169 | $3,727 | $(311 | ) | $(126 | ) |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 7 | EQUITY FUNDS |
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EQUITY FUNDS
FINANCIAL HIGHLIGHTS
INCOME EQUITY FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS SEPT. 30, | YEAR ENDED MARCH 31, 2014 | YEAR ENDED MARCH 31, 2013 | YEAR ENDED MARCH 31, 2012 | YEAR ENDED MARCH 31, 2011 | YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $15.82 | $14.52 | $12.99 | $13.01 | $11.14 | $7.73 | ||||||||||||||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.18 | 0.30 | 0.22 | 0.22 | 0.26 | 0.26 | ||||||||||||||||||
Net realized and unrealized gains | 0.30 | 1.80 | 1.57 | 0.02 | 1.86 | 3.37 | ||||||||||||||||||
Total from Investment Operations | 0.48 | 2.10 | 1.79 | 0.24 | 2.12 | 3.63 | ||||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income | (0.37 | ) | (0.24 | ) | (0.26 | ) | (0.26 | ) | (0.25 | ) | (0.22 | ) | ||||||||||||
From net realized gains | – | (0.56 | ) | – | – | – | – | |||||||||||||||||
Total Distributions Paid | (0.37 | ) | (0.80 | ) | (0.26 | ) | (0.26 | ) | (0.25 | ) | (0.22 | ) | ||||||||||||
Net Asset Value, End of Period | $15.93 | $15.82 | $14.52 | $12.99 | $13.01 | $11.14 | ||||||||||||||||||
Total Return(1) | 3.02 | % | 14.72 | % | 14.04 | % | 2.03 | % | 19.54 | % | 47.21 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $357,019 | $390,616 | $360,423 | $386,957 | $385,609 | $304,288 | ||||||||||||||||||
Ratio to average net assets of:(2) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 1.00 | %(3) | 1.00 | %(3) | 1.00 | %(3) | 0.99 | %(3) | 0.99 | %(3) | 1.00 | % | ||||||||||||
Expenses, before reimbursements and credits | 1.19 | % | 1.25 | % | 1.23 | % | 1.21 | % | 1.23 | % | 1.23 | % | ||||||||||||
Net investment income, net of reimbursements and credits | 2.21 | %(3) | 1.96 | %(3) | 1.85 | %(3) | 1.81 | %(3) | 2.17 | %(3) | 2.71 | % | ||||||||||||
Net investment income, before reimbursements and credits | 2.02 | % | 1.71 | % | 1.62 | % | 1.59 | % | 1.93 | % | 2.48 | % | ||||||||||||
Portfolio Turnover Rate | 90.66 | % | 14.34 | % | 11.27 | % | 22.25 | % | 18.67 | % | 26.94 | % |
(1) | 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. Total return is not annualized for periods less than one year. |
(2) | Annualized for periods less than one year. |
(3) | 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 an affiliated money market fund of approximately $1,000, $7,000 and $9,000, which represent less than 0.005 percent of average net assets for the six months ended September 30, 2014 and fiscal years ended March 31, 2014 and 2013, respectively, and approximately $22,000 and $17,000, which represent 0.01 percent of average net assets for the fiscal years ended March 31, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
See Notes to the Financial Statements.
EQUITY FUNDS | 8 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
INTERNATIONAL EQUITY FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS SEPT. 30, 2014 | YEAR ENDED MARCH 31, 2014 | YEAR ENDED MARCH 31, 2013 | YEAR ENDED MARCH 31, 2012 | YEAR ENDED MARCH 31, 2011 | YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $10.05 | $8.53 | $7.95 | $8.65 | $7.92 | $5.31 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.11 | 0.31 | 0.14 | 0.14 | 0.10 | 0.13 | ||||||||||||||||||
Net realized and unrealized gains (losses) | (0.43 | ) | 1.39 | 0.58 | (0.71 | ) | 0.75 | 2.66 | ||||||||||||||||
Total from Investment Operations | (0.32 | ) | 1.70 | 0.72 | (0.57 | ) | 0.85 | 2.79 | ||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income(1) | – | (0.15 | ) | (0.14 | ) | (0.13 | ) | (0.12 | ) | (0.18 | ) | |||||||||||||
From net realized gains | – | (0.03 | ) | – | – | – | – | |||||||||||||||||
Total Distributions Paid | – | (0.18 | ) | (0.14 | ) | (0.13 | ) | (0.12 | ) | (0.18 | ) | |||||||||||||
Net Asset Value, End of Period | $9.73 | $10.05 | $8.53 | $7.95 | $8.65 | $7.92 | ||||||||||||||||||
Total Return(2) | (3.19 | )% | 19.96 | % | 9.09 | % | (6.39 | )% | 10.86 | % | 52.58 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $252,848 | $253,233 | $259,920 | $248,961 | $330,550 | $318,748 | ||||||||||||||||||
Ratio to average net assets of:(3) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 1.07 | %(4) | 1.06 | %(4) | 1.06 | %(4) | 1.21 | %(4) | 1.25 | %(4) | 1.25 | % | ||||||||||||
Expenses, before reimbursements and credits | 1.26 | % | 1.32 | % | 1.37 | % | 1.41 | % | 1.40 | % | 1.40 | % | ||||||||||||
Net investment income, net of reimbursements and credits | 2.39 | %(4) | 3.00 | %(4) | 1.88 | %(4) | 1.61 | %(4) | 1.18 | %(4) | 1.69 | % | ||||||||||||
Net investment income, before reimbursements and credits | 2.20 | % | 2.74 | % | 1.57 | % | 1.41 | % | 1.03 | % | 1.54 | % | ||||||||||||
Portfolio Turnover Rate | 3.44 | % | 16.09 | % | 27.40 | % | 37.68 | % | 40.87 | % | 44.44 | % |
(1) | Distributions to shareholders from net investment income include amounts relating to foreign currency transactions which are treated as ordinary income for federal income tax purposes. |
(2) | 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. Total return is not annualized for periods less than one year. |
(3) | Annualized for periods less than one year. |
(4) | 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 an affiliated money market fund of less than $1,000, which represents less than 0.005 percent of average net assets for the six months ended September 30, 2014, and approximately $3,000, $3,000, $3,000 and $6,000 which represent less than 0.005 percent of average net assets for the fiscal years ended March 31, 2014, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 9 | EQUITY FUNDS |
Table of Contents
EQUITY FUNDS
FINANCIAL HIGHLIGHTS continued
LARGE CAP CORE FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS SEPT. 30, 2014 | YEAR ENDED MARCH 31, 2014 | YEAR ENDED MARCH 31, 2013 | YEAR ENDED MARCH 31, 2012 | YEAR ENDED MARCH 31, 2011 | YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $14.11 | $11.43 | $10.17 | $9.43 | $8.38 | $5.66 | ||||||||||||||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.13 | 0.20 | 0.21 | 0.15 | 0.12 | 0.12 | ||||||||||||||||||
Net realized and unrealized gains | 0.71 | 2.68 | 1.27 | 0.74 | 1.06 | 2.72 | ||||||||||||||||||
Total from Investment Operations | 0.84 | 2.88 | 1.48 | 0.89 | 1.18 | 2.84 | ||||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income | (0.12 | ) | (0.20 | ) | (0.22 | ) | (0.15 | ) | (0.13 | ) | (0.12 | ) | ||||||||||||
Total Distributions Paid | (0.12 | ) | (0.20 | ) | (0.22 | ) | (0.15 | ) | (0.13 | ) | (0.12 | ) | ||||||||||||
Net Asset Value, End of Period | $14.83 | $14.11 | $11.43 | $10.17 | $9.43 | $8.38 | ||||||||||||||||||
Total Return(1) | 6.01 | % | 25.31 | % | 14.76 | % | 9.64 | % | 14.21 | % | 50.46 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $30,522 | $25,553 | $12,564 | $13,520 | $14,349 | $25,053 | ||||||||||||||||||
Ratio to average net assets of:(2) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 0.63 | %(3) | 0.62 | %(3) | 0.62 | %(3) | 0.60 | %(3) | 0.59 | %(3) | 0.60 | % | ||||||||||||
Expenses, before reimbursements and credits | 1.15 | % | 1.47 | % | 1.98 | % | 1.72 | % | 1.26 | % | 1.21 | % | ||||||||||||
Net investment income, net of reimbursements and credits | 1.69 | %(3) | 1.69 | %(3) | 2.05 | %(3) | 1.64 | %(3) | 1.48 | %(3) | 1.61 | % | ||||||||||||
Net investment income, before reimbursements and credits | 1.17 | % | 0.84 | % | 0.69 | % | 0.52 | % | 0.81 | % | 1.00 | % | ||||||||||||
Portfolio Turnover Rate | 19.54 | % | 95.11 | % | 85.90 | % | 91.87 | % | 100.72 | % | 117.73 | % |
(1) | 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. Total return is not annualized for periods less than one year. |
(2) | Annualized for periods less than one year. |
(3) | 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 an affiliated money market fund of less than $1,000, which represents less than 0.005 percent of average net assets for the six months ended September 30, 2014 and fiscal years ended March 31, 2014, 2013 and 2012, and approximately $1,000, which represents less than 0.01 percent of average net assets for the fiscal year ended March 31, 2011. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
See Notes to the Financial Statements.
EQUITY FUNDS | 10 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
LARGE CAP EQUITY FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS SEPT. 30, 2013 | YEAR ENDED MARCH 31, 2014 | YEAR ENDED MARCH 31, 2013 | YEAR ENDED MARCH 31, 2012 | YEAR ENDED MARCH 31, 2011 | YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $20.07 | $16.74 | $15.34 | $14.35 | $12.63 | $8.28 | ||||||||||||||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.10 | 0.19 | 0.19 | 0.13 | 0.07 | 0.10 | ||||||||||||||||||
Net realized and unrealized gains | 0.88 | 3.33 | 1.40 | 0.98 | 1.73 | 4.35 | ||||||||||||||||||
Total from Investment Operations | 0.98 | 3.52 | 1.59 | 1.11 | 1.80 | 4.45 | ||||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income | (0.10 | ) | (0.19 | ) | (0.19 | ) | (0.12 | ) | (0.08 | ) | (0.10 | ) | ||||||||||||
From net realized gains | – | – | (1) | – | – | – | – | |||||||||||||||||
Total Distributions Paid | (0.10 | ) | (0.19 | ) | (0.19 | ) | (0.12 | ) | (0.08 | ) | (0.10 | ) | ||||||||||||
Net Asset Value, End of Period | $20.95 | $20.07 | $16.74 | $15.34 | $14.35 | $12.63 | ||||||||||||||||||
Total Return(2) | 4.88 | % | 21.17 | % | 10.49 | % | 7.86 | % | 14.30 | % | 53.90 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $146,317 | $146,840 | $149,141 | $141,286 | $156,298 | $162,570 | ||||||||||||||||||
Ratio to average net assets of:(3) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 0.86 | %(4) | 0.85 | %(4) | 0.85 | %(4) | 0.96 | %(4) | 1.00 | %(4) | 1.00 | % | ||||||||||||
Expenses, before reimbursements and credits | 1.05 | % | 1.13 | % | 1.19 | % | 1.22 | % | 1.25 | % | 1.23 | % | ||||||||||||
Net investment income, net of reimbursements and credits | 0.96 | %(4) | 1.02 | %(4) | 1.24 | %(4) | 0.91 | %(4) | 0.55 | %(4) | 0.89 | % | ||||||||||||
Net investment income, before reimbursements and credits | 0.77 | % | 0.74 | % | 0.90 | % | 0.65 | % | 0.30 | % | 0.66 | % | ||||||||||||
Portfolio Turnover Rate | 7.08 | % | 32.52 | % | 68.24 | % | 63.65 | % | 47.83 | % | 67.21 | % |
(1) | Per share amounts from distributions from net realized gains were less than $0.01 per share. |
(2) | 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. Total return is not annualized for periods less than one year. |
(3) | Annualized for periods less than one year. |
(4) | 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 an affiliated money market fund of less than $1,000, which represents less than 0.005 percent of average net assets for the six months ended September 30, 2014 and fiscal year ended March 31, 2014, respectively, and approximately $3,000, $1,000 and $2,000, which represent less than 0.005 percent of average net assets for the fiscal years ended March 31, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 11 | EQUITY FUNDS |
Table of Contents
EQUITY FUNDS
FINANCIAL HIGHLIGHTS continued
LARGE CAP GROWTH FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS SEPT. 30, 2014 | YEAR ENDED MARCH 31, 2014 | YEAR ENDED MARCH 31, 2013 | YEAR ENDED MARCH 31, 2012 | YEAR ENDED MARCH 31, 2011 | YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $31.56 | $26.30 | $25.00 | $23.18 | $19.16 | $13.41 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income (loss) | (0.03 | ) | 0.03 | 0.06 | (0.03 | ) | – | (1) | 0.05 | |||||||||||||||
Net realized and unrealized gains | 1.47 | 5.28 | 1.29 | 1.85 | 4.04 | 5.77 | ||||||||||||||||||
Total from Investment Operations | 1.44 | 5.31 | 1.35 | 1.82 | 4.04 | 5.82 | ||||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income | – | (0.05 | ) | (0.05 | ) | – | (0.02 | ) | (0.07 | ) | ||||||||||||||
Total Distributions Paid | – | (0.05 | ) | (0.05 | ) | – | (0.02 | ) | (0.07 | ) | ||||||||||||||
Net Asset Value, End of Period | $33.00 | $31.56 | $26.30 | $25.00 | $23.18 | $19.16 | ||||||||||||||||||
Total Return(2) | 4.56 | % | 20.21 | % | 5.42 | % | 7.85 | % | 21.08 | % | 43.39 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $99,922 | $152,691 | $197,609 | $94,070 | $89,506 | $82,726 | ||||||||||||||||||
Ratio to average net assets of:(3) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 0.86 | %(4) | 0.85 | %(4) | 0.85 | %(4) | 0.96 | %(4) | 0.99 | %(4) | 1.00 | % | ||||||||||||
Expenses, before reimbursements and credits | 1.13 | % | 1.14 | % | 1.20 | % | 1.30 | % | 1.33 | % | 1.34 | % | ||||||||||||
Net investment income (loss), net of reimbursements and credits | (0.15 | )%(4) | 0.12 | %(4) | 0.35 | %(4) | (0.11 | )%(4) | 0.02 | %(4) | 0.29 | % | ||||||||||||
Net investment income (loss), before reimbursements and credits | (0.42 | )% | (0.17 | )% | 0.00 | % | (0.45 | )% | (0.32 | )% | (0.05 | )% | ||||||||||||
Portfolio Turnover Rate | 33.86 | % | 38.25 | % | 49.51 | % | 36.04 | % | 147.29 | % | 154.48 | % |
(1) | Amount was less than $0.01 per share. |
(2) | 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. Total return is not annualized for periods less than one year. |
(3) | Annualized for periods less than one year. |
(4) | 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 an affiliated money market fund of less than $1,000, which represents less than 0.005 percent of net assets for the six months ended September 30, 2014 and approximately $3,000, $7,000, $2,000 and $5,000 which represent less than 0.005, less than 0.01, less than 0.005 and 0.01 percent of average net assets for the fiscal years ended March 31, 2014, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net investment loss and net expenses increased by a corresponding amount. |
See Notes to the Financial Statements.
EQUITY FUNDS | 12 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
LARGE CAP VALUE FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS SEPT. 30, 2014 | YEAR ENDED MARCH 31, 2014 | YEAR ENDED MARCH 31, 2013 | YEAR ENDED MARCH 31, 2012 | YEAR ENDED MARCH 31, 2011 | YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $13.00 | $10.84 | $9.88 | $10.20 | $9.37 | $6.21 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.12 | 0.38 | 0.25 | 0.19 | 0.15 | 0.18 | ||||||||||||||||||
Net realized and unrealized gains (losses) | 0.46 | 2.03 | 0.99 | (0.37 | ) | 0.86 | 3.16 | |||||||||||||||||
Total from Investment Operations | 0.58 | 2.41 | 1.24 | (0.18 | ) | 1.01 | 3.34 | |||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income | – | (0.25 | ) | (0.28 | ) | (0.14 | ) | (0.18 | ) | (0.18 | ) | |||||||||||||
Total Distributions Paid | – | (0.25 | ) | (0.28 | ) | (0.14 | ) | (0.18 | ) | (0.18 | ) | |||||||||||||
Net Asset Value, End of Period | $13.58 | $13.00 | $10.84 | $9.88 | $10.20 | $9.37 | ||||||||||||||||||
Total Return(1) | 4.46 | % | 22.30 | % | 12.82 | % | (1.50 | )% | 10.86 | % | 53.94 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $107,025 | $108,899 | $107,774 | $126,809 | $191,223 | $227,104 | ||||||||||||||||||
Ratio to average net assets of:(2) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 0.86 | %(3) | 0.85 | %(3) | 0.85 | %(3) | 1.05 | %(3) | 1.10 | %(3) | 1.10 | % | ||||||||||||
Expenses, before reimbursements and credits | 1.20 | % | 1.32 | % | 1.35 | % | 1.27 | % | 1.23 | % | 1.21 | % | ||||||||||||
Net investment income, net of reimbursements and credits | 1.55 | %(3) | 2.87 | %(3) | 2.18 | %(3) | 1.66 | %(3) | 1.36 | %(3) | 1.76 | % | ||||||||||||
Net investment income, before reimbursements and credits | 1.21 | % | 2.40 | % | 1.68 | % | 1.44 | % | 1.23 | % | 1.65 | % | ||||||||||||
Portfolio Turnover Rate | 77.78 | % | 23.90 | % | 22.91 | % | 49.82 | % | 65.38 | % | 30.54 | % |
(1) | 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. Total return is not annualized for periods less than one year. |
(2) | Annualized for periods less than one year. |
(3) | 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 an affiliated money market fund of less than $1,000, which represents less than 0.005 percent of average net assets for the six months ended September 30, 2014, and approximately $3,000, $3,000, and $2,000, which represent less than 0.005 percent of average net assets for the fiscal years ended March 31, 2014, 2013 and 2012, respectively, and approximately $11,000, which represents 0.01 percent of average net assets for the fiscal year ended March 31, 2011. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 13 | EQUITY FUNDS |
Table of Contents
EQUITY FUNDS
FINANCIAL HIGHLIGHTS continued
SMALL CAP CORE FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS SEPT. 30, 2014 | YEAR ENDED MARCH 31, 2014 | YEAR ENDED MARCH 31, 2013 | YEAR ENDED MARCH 31, 2012 | YEAR ENDED MARCH 31, 2011 | YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $21.19 | $18.39 | $15.87 | $15.80 | $12.38 | $7.81 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income (loss) | 0.07 | 0.10 | 0.17 | 0.06 | 0.01 | (0.08 | ) | |||||||||||||||||
Net realized and unrealized gains (losses) | (0.93 | ) | 4.41 | 2.59 | 0.05 | 3.41 | 4.65 | |||||||||||||||||
Total from Investment Operations | (0.86 | ) | 4.51 | 2.76 | 0.11 | 3.42 | 4.57 | |||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income | – | (0.07 | ) | (0.21 | ) | (0.04 | ) | – | – | |||||||||||||||
From net realized gains | – | (1.64 | ) | (0.03 | ) | – | – | – | ||||||||||||||||
Total Distributions Paid | – | (1.71 | ) | (0.24 | ) | (0.04 | ) | – | – | |||||||||||||||
Net Asset Value, End of Period | $20.33 | $21.19 | $18.39 | �� | $15.87 | $15.80 | $12.38 | |||||||||||||||||
Total Return(1) | (4.06 | )% | 24.95 | % | 17.57 | % | 0.71 | % | 27.73 | % | 58.39 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $182,720 | $189,239 | $212,559 | $196,260 | $180,602 | $39,001 | ||||||||||||||||||
Ratio to average net assets of:(2) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 0.75 | %(3) | 0.75 | %(3) | 0.75 | %(3) | 0.93 | %(3) | 0.98 | %(3) | 1.22 | %(4) | ||||||||||||
Expenses, before reimbursements and credits | 1.03 | % | 1.22 | % | 1.23 | % | 1.20 | % | 1.39 | % | 1.86 | % | ||||||||||||
Net investment income (loss), net of reimbursements and credits | 0.63 | %(3) | 0.46 | %(3) | 1.03 | %(3) | 0.41 | %(3) | 0.22 | %(3) | (0.71 | )% | ||||||||||||
Net investment income (loss), before reimbursements and credits | 0.35 | % | (0.01 | )% | 0.55 | % | 0.14 | % | (0.19 | )% | (1.35 | )% | ||||||||||||
Portfolio Turnover Rate | 6.69 | % | 6.24 | % | 12.23 | % | 12.33 | % | 13.90 | % | 224.05 | % |
(1) | 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. Total return is not annualized for periods less than one year. |
(2) | Annualized for periods less than one year. |
(3) | 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 an affiliated money market fund of approximately $1,000, $4,000, $9,000 and $6,000, which represent less than 0.005 percent of average net assets for the six months ended September 30, 2014 and the fiscal years ended March 31, 2014, 2013 and 2012 respectively, and approximately $12,000, which represents 0.02 percent of average net assets for the fiscal year ended March 31, 2011. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
(4) | Effective February 17, 2010, the Fund changed its name from the Small Cap Growth Fund to the Small Cap Core Fund and changed its investment strategy from an active small cap growth investment style to a quantitative small cap core investment style. These changes resulted in a reduction to the Fund’s expense limitations, effective February 17, 2010, from 1.25 percent to 1.00 percent. |
See Notes to the Financial Statements.
EQUITY FUNDS | 14 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SMALL CAP VALUE FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS SEPT. 30, 2014 | YEAR ENDED MARCH 31, 2014 | YEAR ENDED MARCH 31, 2013 | YEAR ENDED MARCH 31, 2012 | YEAR ENDED MARCH 31, 2011 | YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $21.13 | $18.43 | $16.57 | $16.20 | $13.33 | $8.49 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.11 | 0.17 | 0.24 | 0.14 | 0.10 | 0.09 | ||||||||||||||||||
Net realized and unrealized gains (losses) | (1.15 | ) | 4.09 | 2.26 | 0.35 | 2.87 | 4.85 | |||||||||||||||||
Total from Investment Operations | (1.04 | ) | 4.26 | 2.50 | 0.49 | 2.97 | 4.94 | |||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income | – | (0.16 | ) | (0.23 | ) | (0.10 | ) | (0.10 | ) | (0.10 | ) | |||||||||||||
From net realized gains | – | (1.40 | ) | (0.41 | ) | (0.02 | ) | – | – | |||||||||||||||
Total Distributions Paid | – | (1.56 | ) | (0.64 | ) | (0.12 | ) | (0.10 | ) | (0.10 | ) | |||||||||||||
Net Asset Value, End of Period | $20.09 | $21.13 | $18.43 | $16.57 | $16.20 | $13.33 | ||||||||||||||||||
Total Return(1) | (4.92 | )% | 23.48 | % | 15.60 | % | 3.16 | % | 22.37 | % | 58.27 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $2,493,812 | $2,641,432 | $2,076,853 | $1,779,025 | $1,732,969 | $1,464,482 | ||||||||||||||||||
Ratio to average net assets of:(2) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 1.00 | %(3) | 1.00 | %(3) | 1.00 | %(3) | 1.00 | %(3) | 0.99 | %(3) | 1.00 | % | ||||||||||||
Expenses, before reimbursements and credits | 1.30 | % | 1.40 | % | 1.36 | % | 1.37 | % | 1.36 | % | 1.38 | % | ||||||||||||
Net investment income, net of reimbursements and credits | 1.03 | %(3) | 0.85 | %(3) | 1.45 | %(3) | 0.89 | %(3) | 0.70 | %(3) | 0.82 | % | ||||||||||||
Net investment income, before reimbursements and credits | 0.73 | % | 0.45 | % | 1.09 | % | 0.52 | % | 0.33 | % | 0.44 | % | ||||||||||||
Portfolio Turnover Rate | 11.31 | % | 20.70 | % | 26.09 | % | 20.67 | % | 17.94 | % | 33.26 | % |
(1) | 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. Total return is not annualized for periods less than one year. |
(2) | Annualized for periods less than one year. |
(3) | 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 an affiliated money market fund of approximately $15,000, $72,000, $81,000 and $44,000, which represent less than 0.005 percent of average net assets for the six months ended September 30, 2014 and the fiscal years ended March 31, 2014, 2013 and 2012 respectively, and approximately $111,000, which represents 0.01 percent of average net assets for the fiscal year ended March 31, 2011. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 15 | EQUITY FUNDS |
Table of Contents
EQUITY FUNDS
FINANCIAL HIGHLIGHTS continued
TECHNOLOGY FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS SEPT. 30, 2014 | YEAR ENDED MARCH 31, 2014 | YEAR ENDED MARCH 31, 2013 | YEAR ENDED MARCH 31, 2012 | YEAR ENDED MARCH 31, 2011 | YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $20.53 | $17.06 | $17.11 | $15.62 | $12.14 | $8.48 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment loss | (0.05 | ) | (0.12 | ) | (0.12 | ) | (0.11 | ) | (0.07 | ) | (0.06 | ) | ||||||||||||
Net realized and unrealized gains | 0.84 | 3.59 | 0.07 | 1.60 | 3.55 | 3.72 | ||||||||||||||||||
Total from Investment Operations | 0.79 | 3.47 | (0.05 | ) | 1.49 | 3.48 | 3.66 | |||||||||||||||||
Net Asset Value, End of Period | $21.32 | $20.53 | $17.06 | $17.11 | $15.62 | $12.14 | ||||||||||||||||||
Total Return(1) | 3.85 | % | 20.34 | % | (0.29 | )% | 9.54 | % | 28.67 | % | 43.16 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $78,369 | $81,693 | $79,554 | $102,200 | $94,851 | $81,054 | ||||||||||||||||||
Ratio to average net assets of:(2) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 1.26 | %(3) | 1.25 | %(3) | 1.25 | %(3) | 1.25 | %(3) | 1.25 | %(3) | 1.25 | % | ||||||||||||
Expenses, before reimbursements and credits | 1.46 | % | 1.52 | % | 1.53 | % | 1.47 | % | 1.48 | % | 1.49 | % | ||||||||||||
Net investment loss, net of reimbursements and credits | (0.47 | )%(3) | (0.59 | )%(3) | (0.61 | )%(3) | (0.76 | )%(3) | (0.53 | )%(3) | (0.56 | )% | ||||||||||||
Net investment loss, before reimbursements and credits | (0.67 | )% | (0.86 | )% | (0.89 | )% | (0.98 | )% | (0.76 | )% | (0.80 | )% | ||||||||||||
Portfolio Turnover Rate | 15.11 | % | 35.24 | % | 42.66 | % | 57.57 | % | 114.90 | % | 47.81 | % |
(1) | 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. Total return is not annualized for periods less than one year. |
(2) | Annualized for period less than one year. |
(3) | The net expenses and net investment income (loss) ratios include additional reimbursements of management or advisory fees, as applicable, incurred in connection with the investment of uninvested cash in an affiliated money market fund of less than $1,000, which represents less than 0.005 percent of average net assets for the six months ended September 30, 2014 and approximately $1,000, $2,000, $1,000 and $3,000, which represent less than 0.005 percent of average net assets for the fiscal years ended March 31, 2014, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses and net investment loss increased by a corresponding amount. |
See Notes to the Financial Statements.
EQUITY FUNDS | 16 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
INCOME EQUITY FUND | SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.4% | ||||||||
Aerospace & Defense – 5.1% | ||||||||
Boeing (The) Co. | 88,166 | $11,231 | ||||||
Lockheed Martin Corp. | 37,425 | 6,840 | ||||||
18,071 | ||||||||
Asset Management – 1.2% | ||||||||
BlackRock, Inc. | 12,622 | 4,144 | ||||||
Banking – 11.6% | ||||||||
Cullen/Frost Bankers, Inc. | 39,129 | 2,994 | ||||||
JPMorgan Chase & Co. | 230,884 | 13,908 | ||||||
M&T Bank Corp. | 24,651 | 3,039 | ||||||
New York Community Bancorp, Inc. | 142,630 | 2,264 | ||||||
People’s United Financial, Inc. | 176,186 | 2,549 | ||||||
Valley National Bancorp | 280,098 | 2,714 | ||||||
Wells Fargo & Co. | 269,857 | 13,998 | ||||||
41,466 | ||||||||
Biotechnology & Pharmaceuticals – 8.2% | ||||||||
Merck & Co., Inc. | 230,251 | 13,649 | ||||||
Pfizer, Inc. | 531,543 | 15,718 | ||||||
29,367 | ||||||||
Chemicals – 3.9% | ||||||||
Dow Chemical (The) Co. | 183,021 | 9,597 | ||||||
LyondellBasell Industries N.V., Class A | 41,338 | 4,492 | ||||||
14,089 | ||||||||
Commercial Services – 0.8% | ||||||||
Deluxe Corp. | 54,663 | 3,015 | ||||||
Consumer Products – 9.5% | ||||||||
Altria Group, Inc. | 347,636 | 15,970 | ||||||
Archer-Daniels-Midland Co. | 56,800 | 2,902 | ||||||
Clorox (The) Co. | 36,314 | 3,488 | ||||||
Dr Pepper Snapple Group, Inc. | 59,603 | 3,833 | ||||||
Philip Morris International, Inc. | 46,487 | 3,877 | ||||||
Reynolds American, Inc. | 65,282 | 3,852 | ||||||
33,922 | ||||||||
Distributors – Consumer Staples – 0.8% | ||||||||
Sysco Corp. | 70,313 | 2,668 | ||||||
Distributors – Discretionary – 0.7% | ||||||||
Genuine Parts Co. | 30,079 | 2,638 | ||||||
Hardware – 3.6% | ||||||||
Comtech Telecommunications Corp. | 74,703 | 2,775 | ||||||
Diebold, Inc. | 21,900 | 774 | ||||||
Garmin Ltd. | 48,126 | 2,502 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.4% – continued | ||||||||
Hardware – 3.6% – continued | ||||||||
Seagate Technology PLC | 118,294 | $6,775 | ||||||
12,826 | ||||||||
Health Care Facilities & Services – 0.7% | ||||||||
Owens & Minor, Inc. | 75,732 | 2,479 | ||||||
Insurance – 0.9% | ||||||||
Cincinnati Financial Corp. | 54,893 | 2,583 | ||||||
Mercury General Corp. | 15,129 | 738 | ||||||
3,321 | ||||||||
Iron & Steel – 0.7% | ||||||||
Commercial Metals Co. | 140,106 | 2,392 | ||||||
Oil, Gas & Coal – 10.0% | ||||||||
Chevron Corp. | 83,874 | 10,008 | ||||||
ConocoPhillips | 169,241 | 12,950 | ||||||
CVR Energy, Inc. | 21,325 | 954 | ||||||
HollyFrontier Corp. | 141,300 | 6,172 | ||||||
Seadrill Ltd. | 82,662 | 2,212 | ||||||
Spectra Energy Corp. | 84,568 | 3,320 | ||||||
35,616 | ||||||||
Real Estate – 5.5% | ||||||||
Corrections Corp. of America | 104,764 | 3,600 | ||||||
Digital Realty Trust, Inc. | 49,227 | 3,071 | ||||||
Healthcare Realty Trust, Inc. | 129,635 | 3,070 | ||||||
Hospitality Properties Trust | 131,901 | 3,541 | ||||||
Iron Mountain, Inc. | 102,179 | 3,336 | ||||||
National Retail Properties, Inc. | 89,617 | 3,098 | ||||||
19,716 | ||||||||
Recreational Facilities & Services – 1.4% | ||||||||
Regal Entertainment Group, Class A | 132,317 | 2,631 | ||||||
Six Flags Entertainment Corp. | 68,456 | 2,354 | ||||||
4,985 | ||||||||
Retail – Discretionary – 5.2% | ||||||||
GameStop Corp., Class A | 71,350 | 2,940 | ||||||
Home Depot (The), Inc. | 169,700 | 15,568 | ||||||
18,508 | ||||||||
Semiconductors – 5.9% | ||||||||
Applied Materials, Inc. | 195,568 | 4,226 | ||||||
KLA-Tencor Corp. | 41,994 | 3,309 | ||||||
Linear Technology Corp. | 96,781 | 4,296 | ||||||
Texas Instruments, Inc. | 194,635 | 9,282 | ||||||
21,113 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 17 | EQUITY FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
INCOME EQUITY FUND continued | SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.4% – continued | ||||||||
Software – 1.9% |
| |||||||
Activision Blizzard, Inc. | 181,000 | $3,763 | ||||||
Computer Programs & Systems, Inc. | 53,013 | 3,048 | ||||||
6,811 | ||||||||
Technology Services – 6.2% |
| |||||||
Accenture PLC, Class A | 121,114 | 9,849 | ||||||
Broadridge Financial Solutions, Inc. | 107,300 | 4,467 | ||||||
Computer Sciences Corp. | 36,188 | 2,213 | ||||||
Paychex, Inc. | 67,628 | 2,989 | ||||||
Science Applications International Corp. | 62,395 | 2,760 | ||||||
22,278 | ||||||||
Telecom – 4.2% |
| |||||||
AT&T, Inc. | 283,998 | 10,008 | ||||||
Frontier Communications Corp. | 764,535 | 4,977 | ||||||
14,985 | ||||||||
Transportation & Logistics – 2.6% |
| |||||||
United Parcel Service, Inc., Class B | 94,666 | 9,305 | ||||||
Utilities – 5.6% | ||||||||
American Electric Power Co., Inc. | 79,178 | 4,134 | ||||||
DTE Energy Co. | 75,256 | 5,726 | ||||||
Entergy Corp. | 41,653 | 3,221 | ||||||
TECO Energy, Inc. | 193,795 | 3,368 | ||||||
Vectren Corp. | 84,714 | 3,380 | ||||||
19,829 | ||||||||
Waste & Environment Services & Equipment – 1.2% |
| |||||||
Covanta Holding Corp. | 203,958 | 4,328 | ||||||
Total Common Stocks | ||||||||
(Cost $327,597) | 347,872 | |||||||
INVESTMENT COMPANIES – 0.5% | ||||||||
Northern Institutional Funds – Diversified Assets Portfolio, 0.01% (1)(2) | 1,680,211 | 1,680 | ||||||
Total Investment Companies | ||||||||
(Cost $1,680) | 1,680 | |||||||
Total Investments – 97.9% | ||||||||
(Cost $329,277) | 349,552 | |||||||
Other Assets less Liabilities – 2.1% | 7,467 | |||||||
NET ASSETS – 100.0% | $357,019 |
(1) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
(2) | At March 31, 2014, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $9,239,000 with net sales of approximately $7,559,000 during the six months ended September 30, 2014. |
Percentages shown are based on Net Assets.
At September 30, 2014, the industry sectors for the Fund were:
INDUSTRY SECTOR | % OF LONG-TERM INVESTMENTS | |||
Consumer Discretionary | 8.2% | |||
Consumer Staples | 10.5 | |||
Energy | 10.3 | |||
Financials | 19.7 | |||
Health Care | 10.0 | |||
Industrials | 10.0 | |||
Information Technology | 16.5 | |||
Materials | 4.8 | |||
Telecommunication Services | 4.3 | |||
Utilities | 5.7 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Common Stocks | $347,872 | (1) | $– | $– | $347,872 | |||||||||||
Investment Companies | 1,680 | – | – | 1,680 | ||||||||||||
Total Investments | $349,552 | $– | $– | $349,552 |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
EQUITY FUNDS | 18 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
INTERNATIONAL EQUITY FUND continued | SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 91.9% | ||||||||
Australia – 2.1% | ||||||||
BHP Billiton Ltd. | 59,640 | $1,755 | ||||||
Woodside Petroleum Ltd. | 54,383 | 1,928 | ||||||
WorleyParsons Ltd. | 118,434 | 1,584 | ||||||
5,267 | ||||||||
Belgium – 2.1% | ||||||||
Anheuser-Busch InBev N.V. | 46,797 | 5,191 | ||||||
Brazil – 3.1% | ||||||||
Petroleo Brasileiro S.A. ADR * | 293,365 | 4,163 | ||||||
Vale S.A. ADR | 331,470 | 3,649 | ||||||
7,812 | ||||||||
China – 2.1% | ||||||||
Bank of China Ltd., Class H | 12,066,420 | 5,414 | ||||||
Denmark – 1.2% | ||||||||
Novo Nordisk A/S, Class B | 65,437 | 3,118 | ||||||
France – 13.7% | ||||||||
Airbus Group N.V. | 40,152 | 2,520 | ||||||
BNP Paribas S.A. | 53,494 | 3,538 | ||||||
Bouygues S.A. | 121,416 | 3,909 | ||||||
Casino Guichard Perrachon S.A. | 29,265 | 3,145 | ||||||
Danone S.A. | 47,321 | 3,159 | ||||||
GDF Suez | 137,503 | 3,439 | ||||||
LVMH Moet Hennessy Louis Vuitton S.A. | 29,145 | 4,724 | ||||||
Societe Generale S.A. | 89,182 | 4,533 | ||||||
Total S.A. | 40,278 | 2,603 | ||||||
Wendel S.A. | 26,486 | 2,994 | ||||||
34,564 | ||||||||
Germany – 12.7% | ||||||||
Allianz S.E. (Registered) | 23,724 | 3,844 | ||||||
Bayer A.G. (Registered) | 27,656 | 3,873 | ||||||
Deutsche Bank A.G. (Registered) | 82,666 | 2,900 | ||||||
GEA Group A.G. | 88,995 | 3,869 | ||||||
Infineon Technologies A.G. | 416,483 | 4,310 | ||||||
Rheinmetall A.G. | 67,612 | 3,243 | ||||||
SAP S.E. | 74,222 | 5,352 | ||||||
Siemens A.G. (Registered) | 40,541 | 4,832 | ||||||
32,223 | ||||||||
Hong Kong – 0.8% | ||||||||
AIA Group Ltd. | 384,750 | 1,986 | ||||||
Italy – 1.4% | ||||||||
Prysmian S.p.A. | 194,332 | 3,587 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 91.9% – continued | ||||||||
Japan – 9.3% | ||||||||
Kawasaki Heavy Industries Ltd. | 818,450 | $3,272 | ||||||
KDDI Corp. | 66,625 | 4,009 | ||||||
Kubota Corp. | 215,450 | 3,396 | ||||||
Mitsubishi UFJ Financial Group, Inc. | 865,363 | 4,898 | ||||||
Sony Corp. | 237,300 | 4,276 | ||||||
Tokio Marine Holdings, Inc. | 115,825 | 3,597 | ||||||
23,448 | ||||||||
Netherlands – 1.6% | ||||||||
Royal Dutch Shell PLC, Class A | 2,534 | 96 | ||||||
Royal Dutch Shell PLC, Class B | 101,419 | 4,001 | ||||||
4,097 | ||||||||
Singapore – 1.4% | ||||||||
DBS Group Holdings Ltd. | 253,774 | 3,659 | ||||||
South Korea – 3.8% | ||||||||
Samsung Electronics Co. Ltd. | 5,101 | 5,711 | ||||||
SK Telecom Co. Ltd. ADR | 128,809 | 3,908 | ||||||
9,619 | ||||||||
Spain – 3.4% | ||||||||
Banco Bilbao Vizcaya Argentaria S.A. | 151,383 | 1,813 | ||||||
Banco Santander S.A. | 403,594 | 3,861 | ||||||
Iberdrola S.A. | 403,239 | 2,881 | ||||||
8,555 | ||||||||
Sweden – 2.6% | ||||||||
Husqvarna AB, Class B | 491,653 | 3,463 | ||||||
Telefonaktiebolaget LM Ericsson, Class B | 248,859 | 3,141 | ||||||
6,604 | ||||||||
Switzerland – 10.6% | ||||||||
ABB Ltd. (Registered) * | 142,696 | 3,192 | ||||||
Aryzta A.G. * | 29,548 | 2,549 | ||||||
Credit Suisse Group A.G. (Registered) * | 96,458 | 2,659 | ||||||
Givaudan S.A. (Registered) * | 3,161 | 5,037 | ||||||
Novartis A.G. (Registered) | 70,737 | 6,662 | ||||||
Roche Holding A.G. (Genusschein) | 22,253 | 6,589 | ||||||
26,688 | ||||||||
United Kingdom – 13.7% | ||||||||
Barclays PLC | 1,281,609 | 4,721 | ||||||
BP PLC | 544,650 | 3,991 | ||||||
Diageo PLC | 198,918 | 5,752 | ||||||
GlaxoSmithKline PLC | 149,302 | 3,417 | ||||||
Prudential PLC | 263,212 | 5,846 | ||||||
Standard Chartered PLC | 162,319 | 2,990 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 19 | EQUITY FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
INTERNATIONAL EQUITY FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 91.9% – continued | ||||||||
United Kingdom – 13.7% – continued | ||||||||
Vodafone Group PLC | 948,636 | $3,127 | ||||||
WPP PLC | 235,908 | 4,719 | ||||||
34,563 | ||||||||
United States – 6.3% | ||||||||
Carnival Corp. | 126,345 | 5,075 | ||||||
Halliburton Co. | 101,647 | 6,557 | ||||||
Schlumberger Ltd. | 42,771 | 4,350 | ||||||
15,982 | ||||||||
Total Common Stocks (1) | ||||||||
(Cost $182,698) | 232,377 | |||||||
PREFERRED STOCKS – 4.2% | ||||||||
Brazil – 2.6% | ||||||||
Itau Unibanco Holding S.A. ADR | 478,144 | 6,637 | ||||||
Germany – 1.6% | ||||||||
Volkswagen A.G. | 18,778 | 3,898 | ||||||
Total Preferred Stocks (1) | ||||||||
(Cost $9,726) | 10,535 | |||||||
RIGHTS – 0.0% | ||||||||
Spain – 0.0% | ||||||||
Banco Bilbao Vizcaya Argentaria S.A. * | 151,383 | 15 | ||||||
Total Rights | ||||||||
(Cost $15) (1) | 15 | |||||||
INVESTMENT COMPANIES – 1.6% | ||||||||
Northern Institutional Funds – Diversified Assets Portfolio, 0.01% (2)(3) | 4,170,663 | 4,171 | ||||||
Total Investment Companies | ||||||||
(Cost $4,171) | 4,171 | |||||||
Total Investments – 97.7% | ||||||||
(Cost $196,610) | 247,098 | |||||||
Other Assets less Liabilities – 2.3% | 5,750 | |||||||
NET ASSETS – 100.0% | $252,848 |
(1) | In accordance with the Fund’s prospectus, adjustment factors were provided by an independent evaluation service to determine the value of certain foreign securities. |
(2) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
(3) | At March 31, 2014, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $1,450,000 with net purchases of approximately $2,721,000 during the six months ended September 30, 2014. |
* | Non-Income Producing Security |
Percentages shown are based on Net Assets.
At September 30, 2014, the industry sectors for the Fund were:
INDUSTRY SECTOR | % OF LONG TERM INVESTMENTS | |||
Consumer Discretionary | 10.8% | |||
Consumer Staples | 8.2 | |||
Energy | 12.1 | |||
Financials | 27.1 | |||
Health Care | 9.7 | |||
Industrials | 13.1 | |||
Information Technology | 7.6 | |||
Materials | 4.3 | |||
Telecommunication Services | 4.5 | |||
Utilities | 2.6 | |||
Total | 100.0% |
At September 30, 2014, the Fund’s investments were denominated in the following currencies:
CONCENTRATION BY CURRENCY | % OF LONG-TERM INVESTMENTS | |||
Euro | 36.2% | |||
British Pound | 15.9 | |||
United States Dollar | 14.1 | |||
Swiss Franc | 11.0 | |||
Japanese Yen | 9.7 | |||
All other currencies less than 5% | 13.1 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices). The Fund adjusted the price of certain foreign equity securities held in the portfolio on September 30, 2014 using adjustment factors designed to reflect more accurately the fair value of the securities.The fair valuation of these securities resulted in their categorization as Level 2 investments.
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
See Notes to the Financial Statements.
EQUITY FUND | 20 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Common Stocks | ||||||||||||||||
Brazil | $7,812 | $– | $– | $7,812 | ||||||||||||
South Korea | 3,908 | 5,711 | – | 9,619 | ||||||||||||
Switzerland | 2,548 | 24,140 | – | 26,688 | ||||||||||||
United States | 15,982 | – | – | 15,982 | ||||||||||||
All Other Countries | – | 172,276 | (1) | – | 172,276 | |||||||||||
Preferred Stocks | ||||||||||||||||
Brazil | 6,637 | – | – | 6,637 | ||||||||||||
Germany | – | 3,898 | – | 3,898 | ||||||||||||
Rights | 15 | (1) | – | – | 15 | |||||||||||
Investment Companies | 4,171 | – | – | 4,171 | ||||||||||||
Total Investments | $41,073 | $206,025 | $– | $247,098 |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, the Fund had transfers from Level 2 to Level 1 as disclosed below:
Transfers from Level 2 to Level 1 |
Country | Value (000s) | Reason | ||||
Common Stocks | ||||||
Switzerland | $2,548 | Valuation at last trade price |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 21 | EQUITY FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
LARGE CAP CORE FUND
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 93.6% | ||||||||
Aerospace & Defense – 3.4% | ||||||||
General Dynamics Corp. | 2,019 | $257 | ||||||
L-3 Communications Holdings, Inc. | 1,603 | 191 | ||||||
Lockheed Martin Corp. | 717 | 131 | ||||||
Northrop Grumman Corp. | 1,665 | 219 | ||||||
Raytheon Co. | 2,265 | 230 | ||||||
1,028 | ||||||||
Apparel & Textile Products – 0.5% | ||||||||
Fossil Group, Inc. * | 1,677 | 157 | ||||||
Asset Management – 0.6% | ||||||||
Legg Mason, Inc. | 1,206 | 62 | ||||||
Leucadia National Corp. | 4,375 | 104 | ||||||
166 | ||||||||
Banking – 6.1% | ||||||||
Bank of America Corp. | 26,873 | 458 | ||||||
Citigroup, Inc. | 6,846 | 355 | ||||||
Fifth Third Bancorp | 889 | 18 | ||||||
JPMorgan Chase & Co. | 5,987 | 360 | ||||||
PNC Financial Services Group (The), Inc. | 2,887 | 247 | ||||||
SunTrust Banks, Inc. | 5,098 | 194 | ||||||
Wells Fargo & Co. | 4,244 | 220 | ||||||
1,852 | ||||||||
Biotechnology & Pharmaceuticals – 8.1% |
| |||||||
Biogen Idec, Inc. * | 659 | 218 | ||||||
Eli Lilly & Co. | 4,451 | 289 | ||||||
Gilead Sciences, Inc. * | 4,528 | 482 | ||||||
Johnson & Johnson | 6,274 | 669 | ||||||
Merck & Co., Inc. | 5,541 | 328 | ||||||
Pfizer, Inc. | 16,007 | 473 | ||||||
2,459 | ||||||||
Chemicals – 3.0% | ||||||||
Avery Dennison Corp. | 619 | 28 | ||||||
Dow Chemical (The) Co. | 5,410 | 284 | ||||||
International Flavors & Fragrances, Inc. | 1,262 | 121 | ||||||
LyondellBasell Industries N.V., Class A | 2,518 | 273 | ||||||
PPG Industries, Inc. | 1,112 | 219 | ||||||
925 | ||||||||
Commercial Services – 1.0% | ||||||||
Cintas Corp. | 2,486 | 176 | ||||||
H&R Block, Inc. | 4,101 | 127 | ||||||
303 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 93.6% – continued | ||||||||
Consumer Products – 7.0% | ||||||||
Altria Group, Inc. | 7,420 | $341 | ||||||
Archer-Daniels-Midland Co. | 5,055 | 258 | ||||||
Clorox (The) Co. | 877 | 84 | ||||||
Coca-Cola (The) Co. | 1,874 | 80 | ||||||
Dr. Pepper Snapple Group, Inc. | 3,333 | 214 | ||||||
General Mills, Inc. | 4,252 | 215 | ||||||
Kimberly-Clark Corp. | 2,148 | 231 | ||||||
Lorillard, Inc. | 979 | 59 | ||||||
PepsiCo, Inc. | 2,097 | 195 | ||||||
Philip Morris International, Inc. | 581 | 48 | ||||||
Procter & Gamble (The) Co. | 2,290 | 192 | ||||||
Tyson Foods, Inc., Class A | 5,120 | 202 | ||||||
2,119 | ||||||||
Consumer Services – 0.3% | ||||||||
Graham Holdings Co., Class B | 137 | 96 | ||||||
Containers & Packaging – 1.7% | ||||||||
3M Co. | 2,268 | 321 | ||||||
Ball Corp. | 2,996 | 190 | ||||||
511 | ||||||||
Distributors – Discretionary – 0.6% | ||||||||
Genuine Parts Co. | 2,198 | 193 | ||||||
Electrical Equipment – 2.1% | ||||||||
Dover Corp. | 2,157 | 173 | ||||||
Emerson Electric Co. | 3,576 | 224 | ||||||
General Electric Co. | 9,937 | 255 | ||||||
652 | ||||||||
Gaming, Lodging & Restaurants – 0.8% | ||||||||
Marriott International, Inc., Class A | 584 | 41 | ||||||
McDonald’s Corp. | 2,268 | 215 | ||||||
256 | ||||||||
Hardware – 7.4% | ||||||||
Apple, Inc. | 11,967 | 1,206 | ||||||
Cisco Systems, Inc. | 14,009 | 352 | ||||||
Harris Corp. | 2,513 | 167 | ||||||
Hewlett-Packard Co. | 8,361 | 296 | ||||||
Pitney Bowes, Inc. | 6,830 | 171 | ||||||
Seagate Technology PLC | 1,189 | 68 | ||||||
2,260 | ||||||||
Health Care Facilities & Services – 2.4% | ||||||||
Aetna, Inc. | 853 | 69 | ||||||
Cardinal Health, Inc. | 2,792 | 209 | ||||||
Humana, Inc. | 1,601 | 209 |
See Notes to the Financial Statements.
EQUITY FUNDS | 22 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 93.6% – continued | ||||||||
Health Care Facilities & Services – 2.4% – continued |
| |||||||
WellPoint, Inc. | 2,127 | $254 | ||||||
741 | ||||||||
Home & Office Products – 0.6% | ||||||||
Whirlpool Corp. | 1,268 | 185 | ||||||
Institutional Financial Services – 1.4% | ||||||||
Bank of New York Mellon (The) Corp. | 41 | 2 | ||||||
Goldman Sachs Group (The), Inc. | 1,681 | 308 | ||||||
Morgan Stanley | 3,392 | 117 | ||||||
427 | ||||||||
Insurance – 3.5% | ||||||||
American International Group, Inc. | 2,376 | 128 | ||||||
Assurant, Inc. | 2,788 | 179 | ||||||
Berkshire Hathaway, Inc., Class B * | 1,520 | 210 | ||||||
Genworth Financial, Inc., Class A * | 11,121 | 146 | ||||||
Lincoln National Corp. | 3,662 | 196 | ||||||
Unum Group | 5,104 | 176 | ||||||
XL Group PLC | 1,325 | 44 | ||||||
1,079 | ||||||||
Machinery – 1.3% | ||||||||
Caterpillar, Inc. | 1,009 | 100 | ||||||
Joy Global, Inc. | 2,014 | 110 | ||||||
Parker-Hannifin Corp. | 1,593 | 182 | ||||||
392 | ||||||||
Media – 5.1% | ||||||||
Comcast Corp., Class A | 894 | 48 | ||||||
DIRECTV * | 2,897 | 251 | ||||||
Facebook, Inc., Class A * | 3,168 | 250 | ||||||
Gannett Co., Inc. | 4,351 | 129 | ||||||
Google, Inc., Class A * | 611 | 360 | ||||||
Omnicom Group, Inc. | 2,809 | 194 | ||||||
Priceline Group (The), Inc. * | 40 | 46 | ||||||
VeriSign, Inc. * | 2,163 | 119 | ||||||
Viacom, Inc., Class B | 1,573 | 121 | ||||||
Walt Disney (The) Co. | 526 | 47 | ||||||
1,565 | ||||||||
Medical Equipment & Devices – 2.2% | ||||||||
Agilent Technologies, Inc. | 301 | 17 | ||||||
Becton Dickinson and Co. | 1,747 | 199 | ||||||
CR Bard, Inc. | 1,341 | 191 | ||||||
Medtronic, Inc. | 4,463 | 277 | ||||||
684 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 93.6% – continued | ||||||||
Oil, Gas & Coal – 9.1% | ||||||||
Chevron Corp. | 4,486 | $535 | ||||||
ConocoPhillips | 4,110 | 314 | ||||||
Exxon Mobil Corp. | 8,664 | 815 | ||||||
Helmerich & Payne, Inc. | 1,712 | 168 | ||||||
Marathon Oil Corp. | 1,442 | 54 | ||||||
Occidental Petroleum Corp. | 2,928 | 281 | ||||||
Phillips 66 | 450 | 37 | ||||||
Schlumberger Ltd. | 3,743 | 381 | ||||||
Valero Energy Corp. | 4,036 | 187 | ||||||
2,772 | ||||||||
Passenger Transportation – 0.9% | ||||||||
Southwest Airlines Co. | 7,806 | 264 | ||||||
Real Estate Investment Trusts – 1.9% | ||||||||
Equity Residential | 3,279 | 202 | ||||||
HCP, Inc. | 4,493 | 178 | ||||||
Host Hotels & Resorts, Inc. | 8,912 | 190 | ||||||
570 | ||||||||
Retail – Consumer Staples – 2.3% | ||||||||
CVS Health Corp. | 4,263 | 339 | ||||||
Kroger (The) Co. | 4,466 | 232 | ||||||
Wal-Mart Stores, Inc. | 1,764 | 135 | ||||||
706 | ||||||||
Retail – Discretionary – 4.6% | ||||||||
Amazon.com, Inc. * | 350 | 113 | ||||||
Bed Bath & Beyond, Inc. * | 2,786 | 183 | ||||||
Best Buy Co., Inc. | 6,413 | 215 | ||||||
Coach, Inc. | 2,319 | 83 | ||||||
GameStop Corp., Class A | 4,638 | 191 | ||||||
Gap (The), Inc. | 4,187 | 175 | ||||||
Home Depot (The), Inc. | 162 | 15 | ||||||
Kohl’s Corp. | 2,457 | 150 | ||||||
Macy’s, Inc. | 3,703 | 215 | ||||||
PetSmart, Inc. | 946 | 66 | ||||||
1,406 | ||||||||
Semiconductors – 1.8% | ||||||||
Intel Corp. | 13,524 | 471 | ||||||
Micron Technology, Inc. * | 546 | 19 | ||||||
QUALCOMM, Inc. | 493 | 37 | ||||||
Xilinx, Inc. | 264 | 11 | ||||||
538 | ||||||||
Software – 3.8% | ||||||||
Microsoft Corp. | 16,549 | 767 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 23 | EQUITY FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
LARGE CAP CORE FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 93.6% – continued | ||||||||
Software – 3.8% – continued | ||||||||
Oracle Corp. | 10,501 | $402 | ||||||
1,169 | ||||||||
Specialty Finance – 1.5% | ||||||||
Capital One Financial Corp. | 3,088 | 252 | ||||||
Discover Financial Services | 271 | 18 | ||||||
Western Union (The) Co. | 11,167 | 179 | ||||||
449 | ||||||||
Technology Services – 3.4% | ||||||||
Accenture PLC, Class A | 3,096 | 252 | ||||||
Computer Sciences Corp. | 2,898 | 177 | ||||||
International Business Machines Corp. | 2,590 | 492 | ||||||
McGraw Hill Financial, Inc. | 1,283 | 108 | ||||||
Xerox Corp. | 1,438 | 19 | ||||||
1,048 | ||||||||
Telecom – 2.1% | ||||||||
AT&T, Inc. | 13,501 | 476 | ||||||
Verizon Communications, Inc. | 3,082 | 154 | ||||||
630 | ||||||||
Transportation & Logistics – 0.2% | ||||||||
C.H. Robinson Worldwide, Inc. | 29 | 2 | ||||||
Norfolk Southern Corp. | 527 | 59 | ||||||
Ryder System, Inc. | 119 | 10 | ||||||
71 | ||||||||
Utilities – 2.9% | ||||||||
AES Corp. | 12,323 | 175 | ||||||
Ameren Corp. | 4,607 | 177 | ||||||
American Electric Power Co., Inc. | 3,725 | 194 | ||||||
DTE Energy Co. | 862 | 65 | ||||||
Entergy Corp. | 1,109 | 86 | ||||||
Public Service Enterprise Group, Inc. | 5,378 | 200 | ||||||
897 | ||||||||
Total Common Stocks | ||||||||
(Cost $24,177) | 28,570 | |||||||
INVESTMENT COMPANIES – 5.6% | ||||||||
Northern Institutional Funds – Diversified Assets Portfolio, 0.01% (1)(2) | 1,635,945 | 1,636 | ||||||
SPDR S&P 500 ETF Trust | 326 | 64 | ||||||
Total Investment Companies | ||||||||
(Cost $1,699) | 1,700 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
SHORT-TERM INVESTMENTS – 0.2% | ||||||||
U.S. Treasury Bill, 0.04%, 10/2/14 (3) | $80 | $80 | ||||||
Total Short-Term Investments | ||||||||
(Cost $80) | 80 | |||||||
Total Investments – 99.4% | ||||||||
(Cost $25,956) | 30,350 | |||||||
Other Assets less Liabilities – 0.6% | 172 | |||||||
NET ASSETS – 100.0% | $30,522 |
(1) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
(2) | At March 31,2014, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $1,459,000 with net purchases of approximately $177,000 during the six months ended September 30, 2014. |
(3) | Security pledged as collateral to cover margin requirements for open futures contracts. |
* | Non-Income Producing Security |
Percentages | shown are based on Net Assets. |
At September 30, 2014, the Fund had open futures contracts as follows:
TYPE | NUMBER OF CONTRACTS | NOTIONAL AMOUNT (000s) | CONTRACT POSITION | CONTRACT EXP. | UNREALIZED GAINS (LOSSES) (000s) | |||||||||||||||
E-mini S&P 500 | 17 | $1,671 | Long | 12/14 | $(14) |
At September 30, 2014, the industry sectors for the Fund were:
INDUSTRY SECTOR | % OF LONG-TERM INVESTMENTS | |||
Consumer Discretionary | 11.4% | |||
Consumer Staples | 9.9 | |||
Energy | 9.7 | |||
Financials | 15.8 | |||
Health Care | 13.6 | |||
Industrials | 10.7 | |||
Information Technology | 19.7 | |||
Materials | 3.9 | |||
Telecommunication Services | 2.2 | |||
Utilities | 3.1 | |||
Total | 100.0% |
See Notes to the Financial Statements.
EQUITY FUNDS | 24 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Common Stocks | $28,570 | (1) | $– | $– | $28,570 | |||||||||||
Investment Companies | 1,700 | – | – | 1,700 | ||||||||||||
Short Term Investments | – | 80 | – | 80 | ||||||||||||
Total Investments | $30,270 | $80 | $– | $30,350 | ||||||||||||
OTHER FINANCIAL INSTRUMENTS |
| |||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (14) | $– | $– | $ | (14) |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 25 | EQUITY FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
LARGE CAP EQUITY FUND
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 98.9% | ||||||||
Aerospace & Defense – 2.4% | ||||||||
Boeing (The) Co. | 12,241 | $1,559 | ||||||
Precision Castparts Corp. | 8,450 | 2,002 | ||||||
3,561 | ||||||||
Apparel & Textile Products – 1.1% | ||||||||
VF Corp. | 23,665 | 1,563 | ||||||
Automotive – 1.8% | ||||||||
General Motors Co. | 83,448 | 2,665 | ||||||
Banking – 12.1% | ||||||||
BB&T Corp. | 64,049 | 2,383 | ||||||
Citigroup, Inc. | 95,123 | 4,929 | ||||||
JPMorgan Chase & Co. | 98,050 | 5,907 | ||||||
Wells Fargo & Co. | 86,197 | 4,471 | ||||||
17,690 | ||||||||
Biotechnology & Pharmaceuticals – 6.6% |
| |||||||
Amgen, Inc. | 10,195 | 1,432 | ||||||
Celgene Corp. * | 25,248 | 2,393 | ||||||
Gilead Sciences, Inc. * | 29,478 | 3,138 | ||||||
Pfizer, Inc. | 62,315 | 1,843 | ||||||
Regeneron Pharmaceuticals, Inc. * | 2,195 | 791 | ||||||
9,597 | ||||||||
Chemicals – 1.6% |
| |||||||
Monsanto Co. | 20,568 | 2,314 | ||||||
Consumer Products – 3.1% |
| |||||||
Church & Dwight Co., Inc. | 23,861 | 1,674 | ||||||
Mondelez International, Inc., Class A | 41,658 | 1,427 | ||||||
Procter & Gamble (The) Co. | 17,345 | 1,453 | ||||||
4,554 | ||||||||
Electrical Equipment – 5.2% | ||||||||
Emerson Electric Co. | 31,324 | 1,960 | ||||||
General Electric Co. | 158,116 | 4,051 | ||||||
Honeywell International, Inc. | 17,199 | 1,602 | ||||||
7,613 | ||||||||
Gaming, Lodging & Restaurants – 3.8% | ||||||||
McDonald’s Corp. | 16,434 | 1,558 | ||||||
Starbucks Corp. | 34,290 | 2,588 | ||||||
Yum! Brands, Inc. | 20,463 | 1,473 | ||||||
5,619 | ||||||||
Hardware – 8.8% | ||||||||
Apple, Inc. | 72,526 | 7,307 | ||||||
Cisco Systems, Inc. | 129,802 | 3,267 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 98.9% – continued | ||||||||
Hardware – 8.8% – continued | ||||||||
EMC Corp. | 78,706 | $2,303 | ||||||
12,877 | ||||||||
Health Care Facilities & Services – 6.2% | ||||||||
Catamaran Corp. * | 60,364 | 2,544 | ||||||
Community Health Systems, Inc. * | 53,706 | 2,943 | ||||||
Express Scripts Holding Co. * | 50,098 | 3,538 | ||||||
9,025 | ||||||||
Institutional Financial Services – 1.2% | ||||||||
Intercontinental Exchange, Inc. | 8,887 | 1,734 | ||||||
Insurance – 4.6% | ||||||||
American International Group, Inc. | 35,188 | 1,901 | ||||||
CNO Financial Group, Inc. | 108,573 | 1,841 | ||||||
MetLife, Inc. | 54,823 | 2,945 | ||||||
6,687 | ||||||||
Media – 6.4% | ||||||||
Comcast Corp., Class A | 28,685 | 1,543 | ||||||
Google, Inc., Class A * | 2,089 | 1,229 | ||||||
Google, Inc., Class C * | 2,628 | 1,517 | ||||||
Twenty-First Century Fox, Inc., Class A | 72,421 | 2,483 | ||||||
Walt Disney (The) Co. | 28,288 | 2,519 | ||||||
9,291 | ||||||||
Medical Equipment & Devices – 5.4% | ||||||||
Baxter International, Inc. | 46,044 | 3,304 | ||||||
CR Bard, Inc. | 7,819 | 1,116 | ||||||
Danaher Corp. | 23,621 | 1,795 | ||||||
Zimmer Holdings, Inc. | 17,232 | 1,733 | ||||||
7,948 | ||||||||
Oil, Gas & Coal – 9.8% | ||||||||
Apache Corp. | 21,702 | 2,037 | ||||||
BP PLC ADR | 38,793 | 1,705 | ||||||
Chevron Corp. | 15,954 | 1,904 | ||||||
Exxon Mobil Corp. | 29,014 | 2,729 | ||||||
National Oilwell Varco, Inc. | 26,191 | 1,993 | ||||||
Noble Corp. PLC | 56,797 | 1,262 | ||||||
Schlumberger Ltd. | 27,084 | 2,754 | ||||||
14,384 | ||||||||
Real Estate Investment Trusts – 1.2% | ||||||||
American Tower Corp. | 19,485 | 1,824 | ||||||
Retail – Consumer Staples – 2.4% | ||||||||
CVS Health Corp. | 44,744 | 3,561 |
See Notes to the Financial Statements.
EQUITY FUNDS | 26 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 98.9% – continued | ||||||||
Retail – Discretionary – 4.1% | ||||||||
Dick’s Sporting Goods, Inc. | 49,033 | $2,152 | ||||||
Macy’s, Inc. | 26,711 | 1,554 | ||||||
TJX (The) Cos., Inc. | 38,396 | 2,272 | ||||||
5,978 | ||||||||
Semiconductors – 6.6% | ||||||||
Altera Corp. | 65,562 | 2,346 | ||||||
Intel Corp. | 41,557 | 1,447 | ||||||
NXP Semiconductor N.V. * | 41,953 | 2,871 | ||||||
QUALCOMM, Inc. | 39,836 | 2,978 | ||||||
9,642 | ||||||||
Software – 2.3% | ||||||||
Oracle Corp. | 45,729 | 1,750 | ||||||
Teradata Corp. * | 40,237 | 1,687 | ||||||
3,437 | ||||||||
Utilities – 2.2% | ||||||||
Exelon Corp. | 61,831 | 2,108 | ||||||
Southern (The) Co. | 25,281 | 1,103 | ||||||
3,211 | ||||||||
Total Common Stocks | ||||||||
(Cost $99,763) | 144,775 | |||||||
INVESTMENT COMPANIES – 0.7% | ||||||||
Northern Institutional Funds – Diversified Assets Portfolio, 0.01% (1)(2) | 1,010,150 | 1,010 | ||||||
Total Investment Companies | ||||||||
(Cost $1,010) | 1,010 | |||||||
Total Investments – 99.6% | ||||||||
(Cost $100,773) | 145,785 | |||||||
Other Assets less Liabilities – 0.4% | 532 | |||||||
NET ASSETS – 100.0% | $146,317 |
(1) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
(2) | At March 31, 2014, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $943,000 with net purchases of approximately $67,000 during the six months ended September 30, 2014. |
* | Non-Income Producing Security |
Percentages shown are based on Net Assets.
At September 30, 2014, the industry sectors for the Fund were:
INDUSTRY SECTOR | % OF LONG-TERM INVESTMENTS | |||
Consumer Discretionary | 15.5% | |||
Consumer Staples | 5.6 | |||
Energy | 9.9 | |||
Financials | 19.3 | |||
Health Care | 17.1 | |||
Industrials | 9.0 | |||
Information Technology | 19.8 | |||
Materials | 1.6 | |||
Utilities | 2.2 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices). Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Common Stocks | $144,775 | (1) | $– | $– | $144,775 | |||||||||||
Investment Companies | 1,010 | – | – | 1,010 | ||||||||||||
Total Investments | $145,785 | $– | $– | $145,785 |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 27 | EQUITY FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
LARGE CAP GROWTH FUND
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 98.3% | ||||||||
Aerospace & Defense – 1.0% | ||||||||
Precision Castparts Corp. | 4,205 | $996 | ||||||
Apparel & Textile Products – 1.8% | ||||||||
NIKE, Inc., Class B | 19,638 | 1,752 | ||||||
Automotive – 3.2% | ||||||||
BorgWarner, Inc. | 30,702 | 1,615 | ||||||
Goodyear Tire & Rubber (The) Co. | 72,031 | 1,627 | ||||||
3,242 | ||||||||
Banking – 1.6% | ||||||||
Citigroup, Inc. | 29,991 | 1,554 | ||||||
Biotechnology & Pharmaceuticals – 12.1% |
| |||||||
Alexion Pharmaceuticals, Inc. * | 9,870 | 1,637 | ||||||
Biogen Idec, Inc. * | 7,371 | 2,438 | ||||||
Celgene Corp. * | 32,506 | 3,081 | ||||||
Gilead Sciences, Inc. * | 31,948 | 3,401 | ||||||
Regeneron Pharmaceuticals, Inc. * | 4,347 | 1,567 | ||||||
12,124 | ||||||||
Chemicals – 1.0% | ||||||||
Monsanto Co. | 8,821 | 992 | ||||||
Consumer Products – 2.7% | ||||||||
Church & Dwight Co., Inc. | 18,098 | 1,270 | ||||||
Estee Lauder (The) Cos., Inc., Class A | 18,561 | 1,387 | ||||||
2,657 | ||||||||
Electrical Equipment – 2.2% | ||||||||
Eaton Corp. PLC | 14,798 | 938 | ||||||
Trimble Navigation Ltd. * | 40,391 | 1,232 | ||||||
2,170 | ||||||||
Engineering & Construction Services – 1.0% |
| |||||||
Quanta Services, Inc. * | 27,623 | 1,002 | ||||||
Gaming, Lodging & Restaurants – 3.3% | ||||||||
Starbucks Corp. | 23,105 | 1,744 | ||||||
Yum! Brands, Inc. | 21,011 | 1,512 | ||||||
3,256 | ||||||||
Hardware – 7.6% | ||||||||
Apple, Inc. | 75,165 | 7,573 | ||||||
Health Care Facilities & Services – 3.8% | ||||||||
Catamaran Corp. * | 38,537 | 1,624 | ||||||
HCA Holdings, Inc. * | 30,926 | 2,181 | ||||||
3,805 | ||||||||
Home & Office Products – 5.9% |
| |||||||
Mohawk Industries, Inc. * | 15,134 | 2,041 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 98.3% – continued | ||||||||
Home & Office Products – 5.9% – continued |
| |||||||
Toll Brothers, Inc. * | 55,846 | $1,740 | ||||||
Whirlpool Corp. | 14,240 | 2,074 | ||||||
5,855 | ||||||||
Insurance – 2.1% | ||||||||
Ameriprise Financial, Inc. | 17,287 | 2,133 | ||||||
Machinery – 1.8% | ||||||||
Sensata Technologies Holding N.V. * | 41,503 | 1,848 | ||||||
Manufactured Goods – 0.9% | ||||||||
Valmont Industries, Inc. | 7,020 | 947 | ||||||
Media – 15.0% | ||||||||
Alliance Data Systems Corp. * | 7,813 | 1,940 | ||||||
Facebook, Inc., Class A * | 35,841 | 2,833 | ||||||
Google, Inc., Class A * | 4,314 | 2,538 | ||||||
Google, Inc., Class C * | 5,187 | 2,995 | ||||||
Priceline Group (The), Inc. * | 2,874 | 3,330 | ||||||
Walt Disney (The) Co. | 15,389 | 1,370 | ||||||
15,006 | ||||||||
Medical Equipment & Devices – 5.0% | ||||||||
Danaher Corp. | 19,333 | 1,469 | ||||||
Edwards Lifesciences Corp. * | 17,314 | 1,769 | ||||||
Intuitive Surgical, Inc. * | 3,799 | 1,754 | ||||||
4,992 | ||||||||
Oil, Gas & Coal – 5.2% | ||||||||
EOG Resources, Inc. | 23,158 | 2,293 | ||||||
Schlumberger Ltd. | 28,323 | 2,880 | ||||||
5,173 | ||||||||
Passenger Transportation – 1.6% | ||||||||
Spirit Airlines, Inc. * | 22,396 | 1,549 | ||||||
Real Estate Investment Trusts – 2.0% | ||||||||
American Tower Corp. | 21,443 | 2,008 | ||||||
Retail – Consumer Staples – 1.3% | ||||||||
Costco Wholesale Corp. | 10,744 | �� | 1,346 | |||||
Retail – Discretionary – 2.0% | ||||||||
Amazon.com, Inc. * | 1,616 | 521 | ||||||
TJX (The) Cos., Inc. | 25,481 | 1,508 | ||||||
2,029 | ||||||||
Semiconductors – 4.0% | ||||||||
ARM Holdings PLC ADR | 41,386 | 1,808 | ||||||
NXP Semiconductor N.V. * | 32,495 | 2,224 | ||||||
4,032 |
See Notes to the Financial Statements.
EQUITY FUNDS | 28 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 98.3% – continued | ||||||||
Software – 5.1% | ||||||||
Palo Alto Networks, Inc. * | 10,296 | $1,010 | ||||||
Salesforce.com, Inc. * | 34,208 | 1,968 | ||||||
ServiceNow, Inc. * | 18,104 | 1,064 | ||||||
Splunk, Inc. * | 18,442 | 1,021 | ||||||
5,063 | ||||||||
Specialty Finance – 2.6% | ||||||||
MasterCard, Inc., Class A | 35,380 | 2,615 | ||||||
Transportation & Logistics – 1.1% | ||||||||
Kansas City Southern | 8,952 | 1,085 | ||||||
Transportation Equipment – 1.4% | ||||||||
Cummins, Inc. | 10,956 | 1,446 | ||||||
Total Common Stocks | ||||||||
(Cost $69,931) | 98,250 | |||||||
INVESTMENT COMPANIES – 1.7% | ||||||||
Northern Institutional Funds – Diversified Assets Portfolio, 0.01% (1)(2) | 1,709,243 | 1,709 | ||||||
Total Investment Companies | ||||||||
(Cost $1,709) | 1,709 | |||||||
Total Investments – 100.0% | ||||||||
(Cost $71,640) | 99,959 | |||||||
Liabilities less Other Assets – 0.0% | (37 | ) | ||||||
NET ASSETS – 100.0% | $99,922 |
(1) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
(2) | At March 31, 2014, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $2,068,000 with net sales of approximately $359,000 during the six months ended September 30, 2014. |
* | Non-Income Producing Security |
Percentages shown are based on Net Assets.
At September 30, 2014, the industry sectors for the Fund were:
INDUSTRY SECTOR | % OF LONG TERM INVESTMENTS | |||
Consumer Discretionary | 21.2% | |||
Consumer Staples | 4.1 | |||
Energy | 5.2 | |||
Financials | 5.8 | |||
Health Care | 19.8 | |||
Industrials | 11.5 | |||
Information Technology | 31.4 | |||
Materials | 1.0 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Common Stocks | $98,250 | (1) | $– | $– | $98,250 | |||||||||||
Investment Companies | 1,709 | – | – | 1,709 | ||||||||||||
Total Investments | $99,959 | $– | $– | $99,959 |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 29 | EQUITY FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
LARGE CAP VALUE FUND
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 98.3% | ||||||||
Aerospace & Defense – 2.3% | ||||||||
Exelis, Inc. | 10,311 | $171 | ||||||
General Dynamics Corp. | 3,143 | 399 | ||||||
L-3 Communications Holdings, Inc. | 827 | 98 | ||||||
Northrop Grumman Corp. | 11,300 | 1,489 | ||||||
Oshkosh Corp. | 691 | 31 | ||||||
Raytheon Co. | 3,190 | 324 | ||||||
2,512 | ||||||||
Asset Management – 0.5% | ||||||||
Legg Mason, Inc. | 9,763 | 500 | ||||||
Automotive – 0.7% | ||||||||
Johnson Controls, Inc. | 4,927 | 217 | ||||||
TRW Automotive Holdings Corp. * | 1,064 | 108 | ||||||
Visteon Corp. * | 3,821 | 371 | ||||||
696 | ||||||||
Banking – 11.4% | ||||||||
Bank of America Corp. | 315,698 | 5,383 | ||||||
Citigroup, Inc. | 95,853 | 4,967 | ||||||
JPMorgan Chase & Co. | 21,923 | 1,321 | ||||||
PNC Financial Services Group (The), Inc. | 1 | – | ||||||
Popular, Inc. * | 793 | 23 | ||||||
Zions Bancorporation | 16,624 | 483 | ||||||
12,177 | ||||||||
Biotechnology & Pharmaceuticals – 6.7% |
| |||||||
Johnson & Johnson | 14,756 | 1,573 | ||||||
Merck & Co., Inc. | 26,345 | 1,561 | ||||||
Pfizer, Inc. | 135,979 | 4,021 | ||||||
7,155 | ||||||||
Chemicals – 1.6% | ||||||||
Albemarle Corp. | 11,633 | 685 | ||||||
Avery Dennison Corp. | 9,496 | 424 | ||||||
Celanese Corp., Class A | 9,549 | 559 | ||||||
Dow Chemical (The) Co. | 2 | – | ||||||
E.I. du Pont de Nemours & Co. | 374 | 27 | ||||||
1,695 | ||||||||
Commercial Services – 1.5% | ||||||||
Cintas Corp. | 12,773 | 902 | ||||||
Manpowergroup, Inc. | 3,490 | 245 | ||||||
RR Donnelley & Sons Co. | 26,392 | 434 | ||||||
Vectrus, Inc. * | 573 | 11 | ||||||
1,592 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 98.3% – continued | ||||||||
Consumer Products – 4.1% | ||||||||
Archer-Daniels-Midland Co. | 31,151 | $1,592 | ||||||
ConAgra Foods, Inc. | 1 | – | ||||||
Dr Pepper Snapple Group, Inc. | 12,960 | 834 | ||||||
Energizer Holdings, Inc. | 563 | 69 | ||||||
Pilgrim’s Pride Corp. * | 8,973 | 274 | ||||||
Procter & Gamble (The) Co. | 13,563 | 1,136 | ||||||
Tyson Foods, Inc., Class A | 11,020 | 434 | ||||||
4,339 | ||||||||
Consumer Services – 0.2% | ||||||||
Aaron’s, Inc. | 6,800 | 166 | ||||||
Apollo Education Group, Inc. * | 967 | 24 | ||||||
190 | ||||||||
Containers & Packaging – 2.4% | ||||||||
AptarGroup, Inc. | 375 | 23 | ||||||
Bemis Co., Inc. | 21,122 | 803 | ||||||
International Paper Co. | 19,847 | 948 | ||||||
Sonoco Products Co. | 20,671 | 812 | ||||||
2,586 | ||||||||
Design, Manufacturing & Distribution – 1.5% |
| |||||||
Arrow Electronics, Inc. * | 14,313 | 792 | ||||||
Avnet, Inc. | 19,402 | 805 | ||||||
Jabil Circuit, Inc. | 1,625 | 33 | ||||||
1,630 | ||||||||
Distributors – Consumer Staples – 1.0% |
| |||||||
Bunge Ltd. | 1,408 | 119 | ||||||
Sysco Corp. | 25,566 | 970 | ||||||
1,089 | ||||||||
Distributors – Discretionary – 0.5% |
| |||||||
Ingram Micro, Inc., Class A * | 9,958 | 257 | ||||||
Tech Data Corp. * | 5,416 | 319 | ||||||
576 | ||||||||
Electrical Equipment – 3.2% | ||||||||
Babcock & Wilcox (The) Co. | 6,929 | 192 | ||||||
General Electric Co. | 64,598 | 1,655 | ||||||
Ingersoll-Rand PLC | 13,707 | 773 | ||||||
Tyco International Ltd. | 18,118 | 807 | ||||||
3,427 | ||||||||
Engineering & Construction Services – 0.8% |
| |||||||
AECOM Technology Corp. * | 762 | 26 | ||||||
Chicago Bridge & Iron Co. N.V. | 453 | 26 | ||||||
Fluor Corp. | 11,147 | 745 |
See Notes to the Financial Statements.
EQUITY FUNDS | 30 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 98.3% – continued | ||||||||
Engineering & Construction Services – 0.8% – continued |
| |||||||
URS Corp. | 542 | $31 | ||||||
828 | ||||||||
Forest & Paper Products – 0.0% |
| |||||||
Domtar Corp. | 410 | 14 | ||||||
Gaming, Lodging & Restaurants – 0.0% | ||||||||
Carnival Corp. | 1 | – | ||||||
International Game Technology | 1,981 | 33 | ||||||
33 | ||||||||
Hardware – 2.9% |
| |||||||
Cisco Systems, Inc. | 13,128 | 330 | ||||||
Dolby Laboratories, Inc., Class A * | 273 | 11 | ||||||
EMC Corp. | 4 | – | ||||||
Harris Corp. | 750 | 50 | ||||||
Hewlett-Packard Co. | 38,756 | 1,375 | ||||||
Lexmark International, Inc., Class A | 9,978 | 424 | ||||||
NetApp, Inc. | 15,739 | 676 | ||||||
Western Digital Corp. | 2,245 | 219 | ||||||
3,085 | ||||||||
Health Care Facilities & Services – 4.8% |
| |||||||
Aetna, Inc. | 6,130 | 497 | ||||||
Cardinal Health, Inc. | 16,498 | 1,236 | ||||||
Cigna Corp. | 5,649 | 512 | ||||||
Health Net, Inc. * | 593 | 27 | ||||||
Humana, Inc. | 3,522 | 459 | ||||||
Laboratory Corp. of America Holdings * | 441 | 45 | ||||||
MEDNAX, Inc. * | 3,118 | 171 | ||||||
Patterson Cos., Inc. | 569 | 24 | ||||||
Quest Diagnostics, Inc. | 1,362 | 83 | ||||||
UnitedHealth Group, Inc. | 20,605 | 1,777 | ||||||
WellPoint, Inc. | 2,861 | 342 | ||||||
5,173 | ||||||||
Home & Office Products – 1.6% |
| |||||||
Leggett & Platt, Inc. | 434 | 15 | ||||||
Newell Rubbermaid, Inc. | 26,663 | 918 | ||||||
NVR, Inc. * | 606 | 685 | ||||||
Stanley Black & Decker, Inc. | 1,343 | 119 | ||||||
1,737 | ||||||||
Industrial Services – 0.0% |
| |||||||
WESCO International, Inc. * | 349 | 27 | ||||||
Institutional Financial Services – 1.7% |
| |||||||
Bank of New York Mellon (The) Corp. | 2 | – | ||||||
Goldman Sachs Group (The), Inc. | 4,658 | 855 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 98.3% – continued | ||||||||
Institutional Financial Services – 1.7% – continued |
| |||||||
NASDAQ OMX Group (The), Inc. | 2,914 | $124 | ||||||
State Street Corp. | 11,545 | 850 | ||||||
1,829 | ||||||||
Insurance – 8.5% |
| |||||||
Allied World Assurance Co. Holdings A.G. | 16,147 | 595 | ||||||
Allstate (The) Corp. | 4,404 | 270 | ||||||
American Financial Group, Inc. | 449 | 26 | ||||||
American International Group, Inc. | 29,927 | 1,617 | ||||||
Aspen Insurance Holdings Ltd. | 450 | 19 | ||||||
Assurant, Inc. | 12,860 | 827 | ||||||
Assured Guaranty Ltd. | 1,429 | 32 | ||||||
Axis Capital Holdings Ltd. | 896 | 42 | ||||||
Chubb (The) Corp. | 2,465 | 225 | ||||||
Everest Re Group Ltd. | 1,786 | 289 | ||||||
Lincoln National Corp. | 2,579 | 138 | ||||||
PartnerRe Ltd. | 438 | 48 | ||||||
RenaissanceRe Holdings Ltd. | 4,198 | 420 | ||||||
StanCorp Financial Group, Inc. | 292 | 18 | ||||||
Travelers (The) Cos., Inc. | 18,336 | 1,723 | ||||||
Unum Group | 2,428 | 84 | ||||||
Validus Holdings Ltd. | 670 | 26 | ||||||
Voya Financial, Inc. | 23,146 | 905 | ||||||
White Mountains Insurance Group Ltd. | 1,237 | 779 | ||||||
WR Berkley Corp. | 18,852 | 901 | ||||||
XL Group PLC | 2,559 | 85 | ||||||
9,069 | ||||||||
Iron & Steel – 0.0% |
| |||||||
Steel Dynamics, Inc. | 1,870 | 42 | ||||||
Leisure Products – 0.1% |
| |||||||
Mattel, Inc. | 1,995 | 61 | ||||||
Machinery – 1.3% |
| |||||||
AGCO Corp. | 785 | 36 | ||||||
Caterpillar, Inc. | 5,086 | 504 | ||||||
Joy Global, Inc. | 891 | 49 | ||||||
Lincoln Electric Holdings, Inc. | 396 | 27 | ||||||
Parker Hannifin Corp. | 651 | 74 | ||||||
SPX Corp. | 7,308 | 686 | ||||||
1,376 | ||||||||
Media – 0.9% |
| |||||||
Twenty-First Century Fox, Inc., Class A | 29,604 | 1,015 | ||||||
Medical Equipment & Devices – 1.6% | ||||||||
Abbott Laboratories | 3 | – |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 31 | EQUITY FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
LARGE CAP VALUE FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 98.3% – continued | ||||||||
Medical Equipment & Devices – 1.6% – continued |
| |||||||
Agilent Technologies, Inc. | 2,823 | $161 | ||||||
Hill-Rom Holdings, Inc. | 20,266 | 840 | ||||||
Medtronic, Inc. | 10,375 | 643 | ||||||
PerkinElmer, Inc. | 742 | 32 | ||||||
1,676 | ||||||||
Oil, Gas & Coal – 14.2% | ||||||||
Apache Corp. | 3,962 | 372 | ||||||
Baker Hughes, Inc. | 4,081 | 265 | ||||||
Cameron International Corp. * | 1,053 | 70 | ||||||
Chesapeake Energy Corp. | 3,910 | 90 | ||||||
Chevron Corp. | 20,015 | 2,388 | ||||||
ConocoPhillips | 21,410 | 1,638 | ||||||
Denbury Resources, Inc. | 3,115 | 47 | ||||||
Exxon Mobil Corp. | 70,948 | 6,673 | ||||||
Helmerich & Payne, Inc. | 3,119 | 305 | ||||||
Hess Corp. | 2,829 | 267 | ||||||
Marathon Oil Corp. | 6,882 | 259 | ||||||
Marathon Petroleum Corp. | 542 | 46 | ||||||
Nabors Industries Ltd. | 2,483 | 57 | ||||||
National Oilwell Varco, Inc. | 4,011 | 305 | ||||||
Occidental Petroleum Corp. | 13,941 | 1,340 | ||||||
Oil States International, Inc. * | 335 | 21 | ||||||
Patterson-UTI Energy, Inc. | 475 | 15 | ||||||
Phillips 66 | 9,741 | 792 | ||||||
Tesoro Corp. | 599 | 37 | ||||||
Unit Corp. * | 341 | 20 | ||||||
Valero Energy Corp. | 4,073 | 188 | ||||||
15,195 | ||||||||
Passenger Transportation – 0.0% | ||||||||
Southwest Airlines Co. | 450 | 15 | ||||||
Real Estate Investment Trusts – 3.1% | ||||||||
Columbia Property Trust, Inc. | 725 | 17 | ||||||
Equity Residential | 19,060 | 1,174 | ||||||
HCP, Inc. | 24,178 | 960 | ||||||
Home Properties, Inc. | 451 | 26 | ||||||
Host Hotels & Resorts, Inc. | 42,738 | 912 | ||||||
Kimco Realty Corp. | 3,900 | 85 | ||||||
Piedmont Office Realty Trust, Inc., Class A | 1,114 | 20 | ||||||
SL Green Realty Corp. | 916 | 93 | ||||||
3,287 | ||||||||
Retail – Consumer Staples – 3.7% | ||||||||
Big Lots, Inc. | 4,249 | 183 | ||||||
CVS Caremark Corp. | 10,453 | 832 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 98.3% – continued | ||||||||
Retail – Consumer Staples – 3.7% – continued |
| |||||||
Dollar General Corp. * | 9,653 | $590 | ||||||
Safeway, Inc. | 25,198 | 864 | ||||||
Target Corp. | 5,846 | 367 | ||||||
Wal-Mart Stores, Inc. | 14,961 | 1,144 | ||||||
3,980 | ||||||||
Retail – Discretionary – 2.0% | ||||||||
Abercrombie & Fitch Co., Class A | 2,482 | 90 | ||||||
Bed Bath & Beyond, Inc. * | 3,506 | 231 | ||||||
Best Buy Co., Inc. | 4,436 | 149 | ||||||
Coach, Inc. | 1,883 | 67 | ||||||
Dillard’s, Inc., Class A | 298 | 32 | ||||||
Foot Locker, Inc. | 1,102 | 61 | ||||||
GameStop Corp., Class A | 2,069 | 85 | ||||||
Kohl’s Corp. | 3,089 | 189 | ||||||
Lowe’s Cos., Inc. | 16,727 | 885 | ||||||
Macy’s, Inc. | 3,678 | 214 | ||||||
Staples, Inc. | 7,575 | 92 | ||||||
2,095 | ||||||||
Semiconductors – 0.4% | ||||||||
Vishay Intertechnology, Inc. | 734 | 10 | ||||||
Xilinx, Inc. | 11,017 | 467 | ||||||
477 | ||||||||
Software – 0.5% | ||||||||
CA, Inc. | 3,034 | 85 | ||||||
Microsoft Corp. | 6,883 | 319 | ||||||
Symantec Corp. | 6,855 | 161 | ||||||
565 | ||||||||
Specialty Finance – 1.0% | ||||||||
Capital One Financial Corp. | 1 | – | ||||||
CIT Group, Inc. | 1,836 | 84 | ||||||
Fidelity National Information Services, Inc. | 2,470 | 139 | ||||||
Navient Corp. | 49,109 | 870 | ||||||
1,093 | ||||||||
Technology Services – 1.9% | ||||||||
Amdocs Ltd. | 1,473 | 68 | ||||||
Computer Sciences Corp. | 11,513 | 704 | ||||||
DST Systems, Inc. | 8,156 | 684 | ||||||
Genpact Ltd. * | 933 | 15 | ||||||
Leidos Holdings, Inc. | 7,334 | 252 | ||||||
Thomson Reuters Corp. | 3,456 | 126 | ||||||
Xerox Corp. | 11,511 | 152 | ||||||
2,001 |
See Notes to the Financial Statements.
EQUITY FUNDS | 32 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 98.3% – continued | ||||||||
Telecom – 4.1% | ||||||||
AT&T, Inc. | 121,227 | $4,272 | ||||||
Frontier Communications Corp. | 8,819 | 57 | ||||||
Telephone & Data Systems, Inc. | 485 | 12 | ||||||
4,341 | ||||||||
Transportation & Logistics – 1.6% | ||||||||
CSX Corp. | 10,272 | 329 | ||||||
FedEx Corp. | 8,889 | 1,435 | ||||||
1,764 | ||||||||
Utilities – 3.9% | ||||||||
AGL Resources, Inc. | 16,161 | 830 | ||||||
Alliant Energy Corp. | 12,822 | 710 | ||||||
Consolidated Edison, Inc. | 4,588 | 260 | ||||||
Entergy Corp. | 12,464 | 964 | ||||||
Integrys Energy Group, Inc. | 858 | 56 | ||||||
Pepco Holdings, Inc. | 14,169 | 379 | ||||||
Public Service Enterprise Group, Inc. | 25,567 | 952 | ||||||
TECO Energy, Inc. | 1,686 | 29 | ||||||
4,180 | ||||||||
Waste & Environment Services & Equipment – 0.1% |
| |||||||
Republic Services, Inc. | 2,534 | 99 | ||||||
Total Common Stocks | ||||||||
(Cost $96,862) | 105,221 | |||||||
INVESTMENT COMPANIES – 1.5% | ||||||||
Northern Institutional Funds – Diversified Assets Portfolio, 0.01% (1)(2) | 1,601,316 | 1,601 | ||||||
Total Investment Companies | ||||||||
(Cost $1,601) | 1,601 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
SHORT-TERM INVESTMENTS – 0.1% | ||||||||
U.S. Treasury Bill, | ||||||||
0.02%, 4/30/15 (3) | $95 | $95 | ||||||
0.01%, 10/2/14 (3) | 15 | 15 | ||||||
Total Short-Term Investments | ||||||||
(Cost $110) | 110 | |||||||
Total Investments – 99.9% | ||||||||
(Cost $98,573) | 106,932 | |||||||
Other Assets less Liabilities – 0.1% | 93 | |||||||
NET ASSETS – 100.0% | $107,025 |
(1) | At March 31, 2014, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $3,200,000 with net sales of approximately $1,599,000 during the six months ended September 30, 2014. |
(2) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
(3) | Security pledged as collateral to cover margin requirements for open futures contracts. |
* | Non-Income Producing Security |
Percentages shown are based on Net Assets.
At September 30, 2014, the Fund had open futures contracts as follows:
TYPE | NUMBER OF CONTRACTS | NOTIONAL AMOUNT (000s) | CONTRACT POSITION | CONTRACT EXP. | UNREALIZED GAINS (LOSSES) (000s) | |||||||||||||||
E-mini S&P 500 | 18 | $1,769 | Long | 12/14 | $(24) |
At September 30, 2014, the industry sectors for the Fund were:
INDUSTRY SECTOR | % OF LONG-TERM INVESTMENTS | |||
Consumer Discretionary | 6.6% | |||
Consumer Staples | 7.9 | |||
Energy | 14.5 | |||
Financials | 26.4 | |||
Health Care | 13.3 | |||
Industrials | 11.2 | |||
Information Technology | 7.9 | |||
Materials | 4.1 | |||
Telecommunication Services | 4.1 | |||
Utilities | 4.0 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 33 | EQUITY FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
LARGE CAP VALUE FUND continued | SEPTEMBER 30, 2014 (UNAUDITED) |
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Common Stocks | $105,221 | (1) | $– | $– | $105,221 | |||||||||||
Investment Companies | 1,601 | – | – | 1,601 | ||||||||||||
Short-Term Investments | – | 110 | – | 110 | ||||||||||||
Total Investments | $106,822 | $110 | $– | $106,932 | ||||||||||||
OTHER FINANCIAL INSTRUMENTS |
| |||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (24) | $– | $– | $ | (24) |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
EQUITY FUNDS | 34 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SMALL CAP CORE FUND | EPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% | ||||||||
Aerospace & Defense – 1.5% | ||||||||
AAR Corp. | 3,286 | $79 | ||||||
Aerovironment, Inc. * | 1,013 | 31 | ||||||
Astronics Corp. * | 3,044 | 145 | ||||||
Astronics Corp., Class B * | 508 | 24 | ||||||
Breeze-Eastern Corp. * | 5,455 | 56 | ||||||
Ducommun, Inc. * | 2,479 | 68 | ||||||
Esterline Technologies Corp. * | 2,670 | 297 | ||||||
GenCorp, Inc. * | 10,600 | 169 | ||||||
HEICO Corp. | 7,140 | 334 | ||||||
LMI Aerospace, Inc. * | 1,314 | 17 | ||||||
Moog, Inc., Class A * | 5,036 | 345 | ||||||
Orbital Sciences Corp. * | 8,853 | 246 | ||||||
SIFCO Industries, Inc. | 422 | 13 | ||||||
Smith & Wesson Holding Corp. * | 1,096 | 11 | ||||||
Sturm Ruger & Co., Inc. | 2,268 | 110 | ||||||
Taser International, Inc. * | 3,263 | 50 | ||||||
Teledyne Technologies, Inc. * | 4,467 | 420 | ||||||
Woodward, Inc. | 8,065 | 384 | ||||||
2,799 | ||||||||
Apparel & Textile Products – 1.3% | ||||||||
Cherokee, Inc. | 354 | 6 | ||||||
Columbia Sportswear Co. | 4,180 | 149 | ||||||
Deckers Outdoor Corp. * | 3,600 | 350 | ||||||
Delta Apparel, Inc. * | 1,098 | 10 | ||||||
G-III Apparel Group Ltd. * | 3,790 | 314 | ||||||
Iconix Brand Group, Inc. * | 7,964 | 294 | ||||||
Movado Group, Inc. | 2,774 | 92 | ||||||
Oxford Industries, Inc. | 2,359 | 144 | ||||||
Perry Ellis International, Inc. * | 2,102 | 43 | ||||||
Quiksilver, Inc. * | 17,001 | 29 | ||||||
Skechers U.S.A., Inc., Class A * | 3,370 | 180 | ||||||
Steven Madden Ltd. * | 8,376 | 270 | ||||||
Superior Uniform Group, Inc. | 3,036 | 66 | ||||||
Unifi, Inc. * | 2,042 | 53 | ||||||
Vera Bradley, Inc. * | 459 | 9 | ||||||
Weyco Group, Inc. | 865 | 22 | ||||||
Wolverine World Wide, Inc. | 12,654 | 317 | ||||||
2,348 | ||||||||
Asset Management – 0.8% | ||||||||
Altisource Asset Management Corp. * | 300 | 203 | ||||||
BlackRock Kelso Capital Corp. | 600 | 5 | ||||||
Calamos Asset Management, Inc., Class A | 1,513 | 17 | ||||||
Capital Southwest Corp. | 300 | 11 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Asset Management – 0.8% – continued | ||||||||
Cohen & Steers, Inc. | 2,559 | $98 | ||||||
Diamond Hill Investment Group, Inc. | 877 | 108 | ||||||
Financial Engines, Inc. | 3,897 | 133 | ||||||
GAMCO Investors, Inc., Class A | 2,067 | 146 | ||||||
Hercules Technology Growth Capital, Inc. | 100 | 1 | ||||||
Home Loan Servicing Solutions Ltd. | 2,900 | 62 | ||||||
Janus Capital Group, Inc. | 17,812 | 259 | ||||||
NorthStar Asset Management Group, Inc. * | 6,361 | 117 | ||||||
Pzena Investment Management, Inc., Class A | 3,421 | 33 | ||||||
Safeguard Scientifics, Inc. * | 2,408 | 44 | ||||||
Siebert Financial Corp. * | 758 | 2 | ||||||
Solar Capital Ltd. | 100 | 2 | ||||||
Virtus Investment Partners, Inc. | 756 | 131 | ||||||
Westwood Holdings Group, Inc. | 422 | 24 | ||||||
WisdomTree Investments, Inc. * | 9,300 | 106 | ||||||
1,502 | ||||||||
Automotive – 1.2% | ||||||||
Actuant Corp., Class A | 7,008 | 214 | ||||||
American Axle & Manufacturing | ||||||||
Holdings, Inc. * | 2,364 | 40 | ||||||
Cooper Tire & Rubber Co. | 6,955 | 200 | ||||||
Dana Holding Corp. | 16,530 | 317 | ||||||
Dorman Products, Inc. * | 3,508 | 141 | ||||||
Gentherm, Inc. * | 4,034 | 170 | ||||||
Methode Electronics, Inc. | 6,109 | 225 | ||||||
Miller Industries, Inc. | 2,868 | 48 | ||||||
Modine Manufacturing Co. * | 6,014 | 71 | ||||||
Remy International, Inc. | 4,300 | 88 | ||||||
Standard Motor Products, Inc. | 3,484 | 120 | ||||||
Strattec Security Corp. | 100 | 8 | ||||||
Superior Industries International, Inc. | 3,878 | 68 | ||||||
Tenneco, Inc. * | 5,620 | 294 | ||||||
TriMas Corp. * | 4,996 | 122 | ||||||
2,126 | ||||||||
Banking – 8.3% | ||||||||
1st Source Corp. | 4,611 | 131 | ||||||
Access National Corp. | 5,400 | 88 | ||||||
Alliance Bancorp, Inc. of Pennsylvania | 367 | 6 | ||||||
American National Bankshares, Inc. | 2,219 | 50 | ||||||
Ameris Bancorp | 727 | 16 | ||||||
Ames National Corp. | 2,091 | 47 | ||||||
Arrow Financial Corp. | 2,640 | 66 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 35 | EQUITY FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SMALL CAP CORE FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Banking – 8.3% – continued | ||||||||
Astoria Financial Corp. | 8,909 | $110 | ||||||
Banc of California, Inc. | 632 | 7 | ||||||
BancFirst Corp. | 900 | 56 | ||||||
Banco Latinoamericano de Comercio Exterior S.A., Class E | 2,934 | 90 | ||||||
Bancorp (The), Inc. * | 1,080 | 9 | ||||||
BancorpSouth, Inc. | 8,536 | 172 | ||||||
Bank Mutual Corp. | 4,330 | 28 | ||||||
Bank of Hawaii Corp. | 4,500 | 256 | ||||||
Bank of Kentucky Financial (The) Corp. | 925 | 43 | ||||||
Bank of Marin Bancorp | 330 | 15 | ||||||
Bank of South Carolina Corp. | 100 | 1 | ||||||
Bank of the Ozarks, Inc. | 6,522 | 206 | ||||||
BankFinancial Corp. | 1,490 | 15 | ||||||
Banner Corp. | 2,093 | 81 | ||||||
Bar Harbor Bankshares | 2,326 | 67 | ||||||
BBCN Bancorp, Inc. | 10,641 | 155 | ||||||
BCB Bancorp, Inc. | 465 | 6 | ||||||
Beneficial Mutual Bancorp, Inc. * | 7,547 | 96 | ||||||
Berkshire Bancorp, Inc. | 121 | 1 | ||||||
Berkshire Hills Bancorp, Inc. | 7,529 | 177 | ||||||
BofI Holding, Inc. * | 1,600 | 116 | ||||||
Boston Private Financial Holdings, Inc. | 2,108 | 26 | ||||||
Brookline Bancorp, Inc. | 4,740 | 41 | ||||||
Bryn Mawr Bank Corp. | 4,124 | 117 | ||||||
California First National Bancorp | 1,406 | 21 | ||||||
Camden National Corp. | 732 | 26 | ||||||
Cape Bancorp, Inc. | 786 | 7 | ||||||
Capital City Bank Group, Inc. | 3,280 | 44 | ||||||
Capitol Federal Financial, Inc. | 13,700 | 162 | ||||||
Cardinal Financial Corp. | 902 | 15 | ||||||
Cascade Bancorp * | 4,543 | 23 | ||||||
Cathay General Bancorp | 8,685 | 216 | ||||||
Centerstate Banks, Inc. | 471 | 5 | ||||||
Century Bancorp, Inc., Class A | 2,120 | 73 | ||||||
Chemical Financial Corp. | 3,782 | 102 | ||||||
Cheviot Financial Corp. | 492 | 6 | ||||||
Chicopee Bancorp, Inc. | 632 | 9 | ||||||
Citizens & Northern Corp. | 588 | 11 | ||||||
City Holding Co. | 2,220 | 94 | ||||||
Clifton Bancorp, Inc. | 2,221 | 28 | ||||||
CoBiz Financial, Inc. | 1,244 | 14 | ||||||
Columbia Banking System, Inc. | 5,882 | 146 | ||||||
Commercial National Financial Corp. | 121 | 3 | ||||||
Community Bank System, Inc. | 4,436 | 149 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Banking – 8.3% – continued | ||||||||
Community Trust Bancorp, Inc. | 2,262 | $76 | ||||||
ConnectOne Bancorp, Inc. | 4,617 | 88 | ||||||
CVB Financial Corp. | 11,072 | 159 | ||||||
Dime Community Bancshares, Inc. | 2,244 | 32 | ||||||
Eagle Bancorp, Inc. * | 3,588 | 114 | ||||||
Enterprise Bancorp, Inc. | 557 | 10 | ||||||
Enterprise Financial Services Corp. | 603 | 10 | ||||||
ESB Financial Corp. | 551 | 6 | ||||||
ESSA Bancorp, Inc. | 632 | 7 | ||||||
EverBank Financial Corp. | 7,400 | 131 | ||||||
Farmers Capital Bank Corp. * | 563 | 13 | ||||||
Fidelity Southern Corp. | 1,385 | 19 | ||||||
Financial Institutions, Inc. | 2,994 | 67 | ||||||
First Bancorp | 1,178 | 19 | ||||||
First Bancorp, Inc. | 2,547 | 42 | ||||||
First Busey Corp. | 12,652 | 70 | ||||||
First Citizens BancShares, Inc., Class A | 672 | 146 | ||||||
First Clover Leaf Financial Corp. | 167 | 2 | ||||||
First Community Bancshares, Inc. | 3,726 | 53 | ||||||
First Defiance Financial Corp. | 1,292 | 35 | ||||||
First Financial Bancorp | 5,896 | 93 | ||||||
First Financial Bankshares, Inc. | 7,904 | 220 | ||||||
First Financial Corp. | 2,363 | 73 | ||||||
First Financial Northwest, Inc. | 640 | 7 | ||||||
First Merchants Corp. | 921 | 19 | ||||||
First Midwest Bancorp, Inc. | 8,290 | 133 | ||||||
First of Long Island (The) Corp. | 2,138 | 74 | ||||||
First South Bancorp, Inc. | 322 | 3 | ||||||
FirstMerit Corp. | 15,311 | 269 | ||||||
Flushing Financial Corp. | 1,360 | 25 | ||||||
FNB Corp. | 15,475 | 186 | ||||||
Fox Chase Bancorp, Inc. | 4,793 | 78 | ||||||
Fulton Financial Corp. | 18,000 | 199 | ||||||
German American Bancorp, Inc. | 311 | 8 | ||||||
Glacier Bancorp, Inc. | 6,517 | 169 | ||||||
Great Southern Bancorp, Inc. | 4,751 | 144 | ||||||
Guaranty Bancorp | 677 | 9 | ||||||
Hancock Holding Co. | 7,851 | 252 | ||||||
Hanmi Financial Corp. | 3,851 | 78 | ||||||
Hawthorn Bancshares, Inc. | 452 | 6 | ||||||
Heartland Financial USA, Inc. | 563 | 13 | ||||||
Heritage Financial Corp. | 863 | 14 | ||||||
Heritage Financial Group, Inc. | 3,000 | 61 | ||||||
HF Financial Corp. | 465 | 6 |
See Notes to the Financial Statements.
EQUITY FUNDS | 36 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Banking – 8.3% – continued | ||||||||
Hingham Institution for Savings | 64 | $5 | ||||||
Home BancShares, Inc. | 4,144 | 122 | ||||||
Iberiabank Corp. | 4,276 | 267 | ||||||
Independent Bank Corp. | 2,925 | 104 | ||||||
International Bancshares Corp. | 7,541 | 186 | ||||||
Investors Bancorp, Inc. | 16,646 | 169 | ||||||
Kearny Financial Corp. * | 7,096 | 95 | ||||||
Kentucky First Federal Bancorp | 562 | 5 | ||||||
Lakeland Bancorp, Inc. | 6,394 | 62 | ||||||
Lakeland Financial Corp. | 880 | 33 | ||||||
Landmark Bancorp, Inc. | 4,200 | 97 | ||||||
MainSource Financial Group, Inc. | 904 | 16 | ||||||
MB Financial, Inc. | 5,037 | 139 | ||||||
Merchants Bancshares, Inc. | 2,361 | 67 | ||||||
Meridian Bancorp, Inc. * | 1,464 | 15 | ||||||
Metro Bancorp, Inc. * | 714 | 17 | ||||||
Middleburg Financial Corp. | 1,990 | 35 | ||||||
MidSouth Bancorp, Inc. | 598 | 11 | ||||||
MidWestOne Financial Group, Inc. | 425 | 10 | ||||||
MutualFirst Financial, Inc. | 346 | 8 | ||||||
NASB Financial, Inc. | 3,779 | 90 | ||||||
National Bankshares, Inc. | 1,600 | 44 | ||||||
National Penn Bancshares, Inc. | 12,272 | 119 | ||||||
NBT Bancorp, Inc. | 4,197 | 95 | ||||||
Northeast Community Bancorp, Inc. | 721 | 5 | ||||||
Northfield Bancorp, Inc. | 6,592 | 90 | ||||||
Northrim BanCorp, Inc. | 2,551 | 67 | ||||||
Northwest Bancshares, Inc. | 8,004 | 97 | ||||||
Norwood Financial Corp. | 1,851 | 53 | ||||||
OceanFirst Financial Corp. | 4,309 | 69 | ||||||
OFG Bancorp | 6,171 | 92 | ||||||
Ohio Valley Banc Corp. | 658 | 15 | ||||||
Old National Bancorp | 11,083 | 144 | ||||||
Oritani Financial Corp. | 7,492 | 106 | ||||||
Pacific Continental Corp. | 614 | 8 | ||||||
PacWest Bancorp | 7,235 | 298 | ||||||
Park National Corp. | 1,651 | 125 | ||||||
Peapack Gladstone Financial Corp. | 471 | 8 | ||||||
Peoples Bancorp, Inc. | 732 | 17 | ||||||
Peoples Financial Corp. | 221 | 3 | ||||||
Pinnacle Financial Partners, Inc. | 3,726 | 135 | ||||||
Popular, Inc. * | 8,837 | 260 | ||||||
Premier Financial Bancorp, Inc. | 651 | 10 | ||||||
PrivateBancorp, Inc. | 6,612 | 198 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Banking – 8.3% – continued | ||||||||
Prosperity Bancshares, Inc. | 5,959 | $341 | ||||||
Provident Financial Services, Inc. | 7,344 | 120 | ||||||
Prudential Bancorp, Inc. | 934 | 11 | ||||||
Pulaski Financial Corp. | 597 | 7 | ||||||
QCR Holdings, Inc. | 6,316 | 112 | ||||||
Renasant Corp. | 2,063 | 56 | ||||||
Republic Bancorp, Inc., Class A | 1,564 | 37 | ||||||
Republic First Bancorp, Inc. * | 1,090 | 4 | ||||||
S&T Bancorp, Inc. | 3,885 | 91 | ||||||
Sandy Spring Bancorp, Inc. | 3,270 | 75 | ||||||
Seacoast Banking Corp. of Florida * | 685 | 7 | ||||||
Severn Bancorp, Inc. * | 1,182 | 5 | ||||||
Shore Bancshares, Inc. * | 632 | 6 | ||||||
SI Financial Group, Inc. | 729 | 8 | ||||||
Sierra Bancorp | 632 | 11 | ||||||
Simmons First National Corp., Class A | 3,728 | 144 | ||||||
Simplicity Bancorp, Inc. | 485 | 8 | ||||||
South State Corp. | 5,150 | 288 | ||||||
Southern National Bancorp of Virginia, Inc. | 512 | 6 | ||||||
Southside Bancshares, Inc. | 2,684 | 89 | ||||||
Southwest Bancorp, Inc. | 627 | 10 | ||||||
Sterling Bancorp | 3,800 | 49 | ||||||
Stock Yards Bancorp, Inc. | 2,309 | 70 | ||||||
Suffolk Bancorp | 565 | 11 | ||||||
Sun Bancorp, Inc. * | 270 | 5 | ||||||
Susquehanna Bancshares, Inc. | 16,043 | 160 | ||||||
Texas Capital Bancshares, Inc. * | 3,904 | 225 | ||||||
TF Financial Corp. | 199 | 8 | ||||||
Tompkins Financial Corp. | 2,025 | 89 | ||||||
Towne Bank | 1,147 | 16 | ||||||
Trico Bancshares | 2,413 | 55 | ||||||
TrustCo Bank Corp. NY | 7,386 | 48 | ||||||
Trustmark Corp. | 5,223 | 120 | ||||||
UMB Financial Corp. | 3,986 | 217 | ||||||
Umpqua Holdings Corp. | 19,634 | 323 | ||||||
Union Bankshares Corp. | 3,940 | 91 | ||||||
United Bancorp, Inc. | 465 | 4 | ||||||
United Bankshares, Inc. | 4,601 | 142 | ||||||
United Community Banks, Inc. | 4,744 | 78 | ||||||
United Financial Bancorp, Inc. | 5,126 | 65 | ||||||
Univest Corp. of Pennsylvania | 454 | 9 | ||||||
Valley National Bancorp | 18,396 | 178 | ||||||
ViewPoint Financial Group, Inc. | 4,170 | 100 | ||||||
Washington Federal, Inc. | 8,077 | 164 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 37 | EQUITY FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SMALL CAP CORE FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Banking – 8.3% – continued | ||||||||
Washington Trust Bancorp, Inc. | 2,952 | $97 | ||||||
Waterstone Financial, Inc. | 2,929 | 34 | ||||||
Webster Financial Corp. | 7,984 | 233 | ||||||
WesBanco, Inc. | 2,078 | 64 | ||||||
West Bancorporation, Inc. | 795 | 11 | ||||||
Westamerica Bancorporation | 2,791 | 130 | ||||||
Western Alliance Bancorp * | 10,643 | 254 | ||||||
Westfield Financial, Inc. | 1,804 | 13 | ||||||
Wilshire Bancorp, Inc. | 493 | 5 | ||||||
Wintrust Financial Corp. | 4,058 | 181 | ||||||
WSFS Financial Corp. | 2,356 | 169 | ||||||
Yadkin Financial Corp. * | 525 | 10 | ||||||
15,162 | ||||||||
Biotechnology & Pharmaceuticals – 4.2% |
| |||||||
Aceto Corp. | 2,563 | 49 | ||||||
Achillion Pharmaceuticals, Inc. * | 10,600 | 106 | ||||||
Acorda Therapeutics, Inc. * | 5,315 | 180 | ||||||
Aegerion Pharmaceuticals, Inc. * | 4,217 | 141 | ||||||
Akorn, Inc. * | 9,157 | 332 | ||||||
Albany Molecular Research, Inc. * | 8,687 | 192 | ||||||
Anika Therapeutics, Inc. * | 4,772 | 175 | ||||||
Arena Pharmaceuticals, Inc. * | 4,157 | 17 | ||||||
Array BioPharma, Inc. * | 2,130 | 8 | ||||||
Auxilium Pharmaceuticals, Inc. * | 6,094 | 182 | ||||||
AVANIR Pharmaceuticals, Inc. * | 30,462 | 363 | ||||||
BioDelivery Sciences International, Inc. * | 1,664 | 28 | ||||||
BioSpecifics Technologies Corp. * | 1,577 | 56 | ||||||
Cambrex Corp. * | 17,832 | 333 | ||||||
Celldex Therapeutics, Inc. * | 6,123 | 79 | ||||||
Clovis Oncology, Inc. * | 5,197 | 236 | ||||||
Curis, Inc. * | 1,668 | 2 | ||||||
Depomed, Inc. * | 10,430 | 158 | ||||||
Dyax Corp. * | 1,989 | 20 | ||||||
Emergent Biosolutions, Inc. * | 6,316 | 135 | ||||||
Endocyte, Inc. * | 4,800 | 29 | ||||||
Exelixis, Inc. * | 11,597 | 18 | ||||||
Furiex Pharmaceuticals, Inc. (1)* | 2,700 | – | ||||||
Hyperion Therapeutics, Inc. * | 3,000 | 76 | ||||||
ImmunoGen, Inc. * | 4,442 | 47 | ||||||
Immunomedics, Inc. * | 14,372 | 53 | ||||||
Impax Laboratories, Inc. * | 7,204 | 171 | ||||||
Infinity Pharmaceuticals, Inc. * | 1,041 | 14 | ||||||
Insmed, Inc. * | 6,129 | 80 | ||||||
Isis Pharmaceuticals, Inc. * | 11,666 | 453 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Biotechnology & Pharmaceuticals – 4.2% – continued |
| |||||||
KYTHERA Biopharmaceuticals, Inc. * | 3,200 | $105 | ||||||
Lannett Co., Inc. * | 9,664 | 441 | ||||||
Lexicon Pharmaceuticals, Inc. * | 1,547 | 2 | ||||||
Ligand Pharmaceuticals, Inc. * | 5,323 | 250 | ||||||
Mallinckrodt PLC * | 5,112 | 461 | ||||||
Medicines (The) Co. * | 6,766 | 151 | ||||||
Momenta Pharmaceuticals, Inc. * | 9,913 | 112 | ||||||
Natural Alternatives International, Inc. * | 567 | 4 | ||||||
Nature’s Sunshine Products, Inc. | 6,072 | 90 | ||||||
Nektar Therapeutics * | 6,517 | 79 | ||||||
Neurocrine Biosciences, Inc. * | 1,518 | 24 | ||||||
Novavax, Inc. * | 2,370 | 10 | ||||||
NPS Pharmaceuticals, Inc. * | 11,646 | 303 | ||||||
Nutraceutical International Corp. * | 1,585 | 33 | ||||||
Omega Protein Corp. * | 769 | 10 | ||||||
Orexigen Therapeutics, Inc. * | 32,437 | 138 | ||||||
Osiris Therapeutics, Inc. * | 2,090 | 26 | ||||||
Pacira Pharmaceuticals, Inc. * | 3,200 | 310 | ||||||
PDL BioPharma, Inc. | 17,339 | 130 | ||||||
POZEN, Inc. * | 1,041 | 8 | ||||||
Prestige Brands Holdings, Inc. * | 5,149 | 167 | ||||||
Progenics Pharmaceuticals, Inc. * | 1,104 | 6 | ||||||
Puma Biotechnology, Inc. * | 1,400 | 334 | ||||||
Raptor Pharmaceutical Corp. * | 11,900 | 114 | ||||||
Repligen Corp. * | 3,318 | 66 | ||||||
Repros Therapeutics, Inc. * | 3,500 | 35 | ||||||
Sagent Pharmaceuticals, Inc. * | 2,545 | 79 | ||||||
Sangamo BioSciences, Inc. * | 11,303 | 122 | ||||||
Sarepta Therapeutics, Inc. * | 2,200 | 46 | ||||||
SciClone Pharmaceuticals, Inc. * | 1,805 | 12 | ||||||
Spectrum Pharmaceuticals, Inc. * | 6,505 | 53 | ||||||
Sucampo Pharmaceuticals, Inc., Class A * | 9,115 | 59 | ||||||
Synageva BioPharma Corp. * | 521 | 36 | ||||||
USANA Health Sciences, Inc. * | 2,680 | 197 | ||||||
Vanda Pharmaceuticals, Inc. * | 632 | 7 | ||||||
7,753 | ||||||||
Chemicals – 2.4% | ||||||||
A. Schulman, Inc. | 4,305 | 156 | ||||||
American Vanguard Corp. | 3,228 | 36 | ||||||
Axiall Corp. | 8,037 | 288 | ||||||
Balchem Corp. | 3,313 | 187 | ||||||
Calgon Carbon Corp. * | 7,213 | 140 | ||||||
Chemtura Corp. * | 10,654 | 249 | ||||||
Ferro Corp. * | 13,274 | 192 |
See Notes to the Financial Statements.
EQUITY FUNDS | 38 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Chemicals – 2.4% – continued | ||||||||
FutureFuel Corp. | 2,500 | $30 | ||||||
Globe Specialty Metals, Inc. | 7,897 | 144 | ||||||
H.B. Fuller Co. | 5,793 | 230 | ||||||
Hawkins, Inc. | 2,127 | 76 | ||||||
Innophos Holdings, Inc. | 2,974 | 164 | ||||||
Innospec, Inc. | 4,860 | 174 | ||||||
Intrepid Potash, Inc. * | 6,000 | 93 | ||||||
KMG Chemicals, Inc. | 4,190 | 68 | ||||||
Koppers Holdings, Inc. | 1,760 | 58 | ||||||
Kraton Performance Polymers, Inc. * | 3,510 | 63 | ||||||
Landec Corp. * | 2,415 | 30 | ||||||
LSB Industries, Inc. * | 2,477 | 88 | ||||||
Materion Corp. | 3,090 | 95 | ||||||
Minerals Technologies, Inc. | 3,972 | 245 | ||||||
Oil-Dri Corp. of America | 185 | 5 | ||||||
Olin Corp. | 10,192 | 257 | ||||||
OM Group, Inc. | 4,239 | 110 | ||||||
OMNOVA Solutions, Inc. * | 11,226 | 60 | ||||||
PolyOne Corp. | 792 | 28 | ||||||
Polypore International, Inc. * | 5,094 | 198 | ||||||
Quaker Chemical Corp. | 2,957 | 212 | ||||||
Sensient Technologies Corp. | 5,549 | 291 | ||||||
Stepan Co. | 3,384 | 150 | ||||||
Synalloy Corp. | 100 | 2 | ||||||
WD-40 Co. | 3,111 | 211 | ||||||
4,330 | ||||||||
Commercial Services – 2.8% | ||||||||
ABM Industries, Inc. | 7,442 | 191 | ||||||
Advisory Board (The) Co. * | 4,678 | 218 | ||||||
AMN Healthcare Services, Inc. * | 4,800 | 75 | ||||||
ARC Document Solutions, Inc. * | 2,439 | 20 | ||||||
Ascent Capital Group, Inc., Class A * | 2,090 | 126 | ||||||
Barrett Business Services, Inc. | 732 | 29 | ||||||
Brady Corp., Class A | 6,672 | 150 | ||||||
Brink’s (The) Co. | 6,728 | 162 | ||||||
CBIZ, Inc. * | 7,530 | 59 | ||||||
CDI Corp. | 1,159 | 17 | ||||||
Collectors Universe, Inc. | 8,529 | 188 | ||||||
Computer Task Group, Inc. | 2,897 | 32 | ||||||
Corporate Executive Board (The) Co. | 4,399 | 264 | ||||||
CorVel Corp. * | 4,288 | 146 | ||||||
Courier Corp. | 7,838 | 97 | ||||||
CRA International, Inc. * | 2,436 | 62 | ||||||
Cross Country Healthcare, Inc. * | 2,093 | 19 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Commercial Services – 2.8% – continued | ||||||||
Deluxe Corp. | 4,859 | $268 | ||||||
Ennis, Inc. | 4,021 | 53 | ||||||
Franklin Covey Co. * | 776 | 15 | ||||||
FTI Consulting, Inc. * | 4,135 | 145 | ||||||
G&K Services, Inc., Class A | 2,947 | 163 | ||||||
GP Strategies Corp. * | 747 | 21 | ||||||
Hackett Group (The), Inc. | 1,985 | 12 | ||||||
Healthcare Services Group, Inc. | 7,400 | 212 | ||||||
HMS Holdings Corp. * | 10,342 | 195 | ||||||
Huron Consulting Group, Inc. * | 2,452 | 149 | ||||||
Information Services Group, Inc. * | 2,379 | 9 | ||||||
Innodata, Inc. * | 1,500 | 5 | ||||||
Insperity, Inc. | 3,436 | 94 | ||||||
Intersections, Inc. | 938 | 4 | ||||||
Kelly Services, Inc., Class A | 4,273 | 67 | ||||||
Kforce, Inc. | 4,730 | 93 | ||||||
Korn/Ferry International * | 4,494 | 112 | ||||||
Multi-Color Corp. | 2,573 | 117 | ||||||
National Research Corp., Class A * | 6,390 | 83 | ||||||
Navigant Consulting, Inc. * | 5,940 | 83 | ||||||
Odyssey Marine Exploration, Inc. * | 2,982 | 3 | ||||||
On Assignment, Inc. * | 6,417 | 172 | ||||||
PDI, Inc. * | 16,416 | 39 | ||||||
Providence Service (The) Corp. * | 4,681 | 226 | ||||||
Sotheby’s | 6,283 | 224 | ||||||
SP Plus Corp. * | 3,892 | 74 | ||||||
TrueBlue, Inc. * | 4,035 | 102 | ||||||
UniFirst Corp. | 2,221 | 214 | ||||||
Viad Corp. | 3,723 | 77 | ||||||
Vistaprint N.V. * | 3,881 | 213 | ||||||
Volt Information Sciences, Inc. * | 2,231 | 20 | ||||||
5,119 | ||||||||
Construction Materials – 0.6% | ||||||||
Apogee Enterprises, Inc. | 5,862 | 233 | ||||||
Deltic Timber Corp. | 1,432 | 89 | ||||||
Headwaters, Inc. * | 10,503 | 132 | ||||||
Louisiana-Pacific Corp. * | 15,895 | 216 | ||||||
Trex Co., Inc. * | 5,862 | 203 | ||||||
United States Lime & Minerals, Inc. | 1,480 | 86 | ||||||
Universal Forest Products, Inc. | 2,652 | 113 | ||||||
1,072 | ||||||||
Consumer Products – 2.7% | ||||||||
Adecoagro S.A. * | 725 | 6 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 39 | EQUITY FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SMALL CAP CORE FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Consumer Products – 2.7% – continued | ||||||||
Alico, Inc. | 947 | $36 | ||||||
Alliance One International, Inc. * | 8,393 | 16 | ||||||
B&G Foods, Inc. | 7,474 | 206 | ||||||
Boston Beer (The) Co., Inc., Class A * | 1,132 | 251 | ||||||
Boulder Brands, Inc. * | 1,210 | 16 | ||||||
Bridgford Foods Corp. * | 342 | 3 | ||||||
Cal-Maine Foods, Inc. | 2,468 | 220 | ||||||
Central Garden and Pet Co., Class A * | 3,449 | 28 | ||||||
Chiquita Brands International, Inc. * | 5,210 | 74 | ||||||
Clearwater Paper Corp. * | 2,674 | 161 | ||||||
Coca-Cola Bottling Co. Consolidated | 1,445 | 108 | ||||||
Craft Brew Alliance, Inc. * | 6,145 | 88 | ||||||
Darling Ingredients, Inc. * | 13,315 | 244 | ||||||
Elizabeth Arden, Inc. * | 3,243 | 54 | ||||||
Farmer Bros. Co. * | 5,589 | 162 | ||||||
Female Health (The) Co. | 773 | 3 | ||||||
Fresh Del Monte Produce, Inc. | 4,035 | 129 | ||||||
Golden Enterprises, Inc. | 424 | 2 | ||||||
Hain Celestial Group (The), Inc. * | 4,572 | 468 | ||||||
Harbinger Group, Inc. * | 10,336 | 136 | ||||||
Helen of Troy Ltd. * | 3,546 | 186 | ||||||
Inter Parfums, Inc. | 4,096 | 113 | ||||||
J&J Snack Foods Corp. | 2,518 | 236 | ||||||
Lancaster Colony Corp. | 2,072 | 177 | ||||||
Lifeway Foods, Inc. * | 277 | 4 | ||||||
National Beverage Corp. * | 2,406 | 47 | ||||||
Orchids Paper Products Co. | 454 | 11 | ||||||
Post Holdings, Inc. * | 3,400 | 113 | ||||||
Revlon, Inc., Class A * | 454 | 14 | ||||||
Sanderson Farms, Inc. | 2,338 | 206 | ||||||
Seaboard Corp. * | 52 | 139 | ||||||
Seneca Foods Corp., Class A * | 277 | 8 | ||||||
Snyder’s-Lance, Inc. | 5,160 | 137 | ||||||
Spectrum Brands Holdings, Inc. | 2,800 | 253 | ||||||
Tootsie Roll Industries, Inc. | 4,662 | 130 | ||||||
TreeHouse Foods, Inc. * | 4,903 | 395 | ||||||
United-Guardian, Inc. | 460 | 10 | ||||||
Universal Corp. | 2,927 | 130 | ||||||
Vector Group Ltd. | 6,698 | 148 | ||||||
Zep, Inc. | 3,113 | 44 | ||||||
4,912 | ||||||||
Consumer Services – 0.7% | ||||||||
Aaron’s, Inc. | 1,012 | 25 | ||||||
American Public Education, Inc. * | 2,652 | 72 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Consumer Services – 0.7% – continued | ||||||||
Bridgepoint Education, Inc. * | 2,383 | $27 | ||||||
Capella Education Co. | 2,600 | 163 | ||||||
DeVry Education Group, Inc. | 4,800 | 205 | ||||||
Grand Canyon Education, Inc. * | 4,700 | 192 | ||||||
K12, Inc. * | 5,545 | 88 | ||||||
Matthews International Corp., Class A | 4,678 | 205 | ||||||
Medifast, Inc. * | 454 | 15 | ||||||
Regis Corp. | 7,545 | 120 | ||||||
Rent-A-Center, Inc. | 5,912 | 179 | ||||||
Strayer Education, Inc. * | 1,300 | 78 | ||||||
1,369 | ||||||||
Containers & Packaging – 0.4% | ||||||||
AEP Industries, Inc. * | 1,889 | 72 | ||||||
Berry Plastics Group, Inc. * | 6,800 | 172 | ||||||
Graphic Packaging Holding Co. * | 34,460 | 428 | ||||||
Myers Industries, Inc. | 2,840 | 50 | ||||||
Tredegar Corp. | 5,233 | 96 | ||||||
818 | ||||||||
Design, Manufacturing & Distribution – 0.2% |
| |||||||
Benchmark Electronics, Inc. * | 5,199 | 115 | ||||||
CTS Corp. | 5,665 | 90 | ||||||
Plexus Corp. * | 3,945 | 146 | ||||||
Transcat, Inc. * | 83 | 1 | ||||||
352 | ||||||||
Distributors – Consumer Staples – 0.4% | ||||||||
Andersons (The), Inc. | 4,114 | 259 | ||||||
Calavo Growers, Inc. | 454 | 21 | ||||||
Core-Mark Holding Co., Inc. | 2,246 | 119 | ||||||
United Natural Foods, Inc. * | 5,667 | 348 | ||||||
747 | ||||||||
Distributors – Discretionary – 1.0% | ||||||||
AMREP Corp. * | 5,193 | 24 | ||||||
ePlus, Inc. * | 3,370 | 189 | ||||||
FTD Cos., Inc. * | 3,046 | 104 | ||||||
Insight Enterprises, Inc. * | 6,105 | 138 | ||||||
MWI Veterinary Supply, Inc. * | 1,607 | 239 | ||||||
PC Connection, Inc. | 3,235 | 69 | ||||||
PCM, Inc. * | 794 | 8 | ||||||
Pool Corp. | 5,591 | 302 | ||||||
ScanSource, Inc. * | 4,003 | 138 | ||||||
SYNNEX Corp. * | 2,955 | 191 | ||||||
Tech Data Corp. * | 3,700 | 218 | ||||||
United Stationers, Inc. | 5,964 | 224 |
See Notes to the Financial Statements.
EQUITY FUNDS | 40 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Distributors – Discretionary – 1.0% – continued |
| |||||||
Wayside Technology Group, Inc. | 1,345 | $21 | ||||||
1,865 | ||||||||
Electrical Equipment – 2.2% | ||||||||
AAON, Inc. | 7,236 | 123 | ||||||
Acuity Brands, Inc. | 4,870 | 573 | ||||||
American Science & Engineering, Inc. | 1,560 | 86 | ||||||
Argan, Inc. | 982 | 33 | ||||||
Badger Meter, Inc. | 2,910 | 147 | ||||||
Bel Fuse, Inc., Class B | 1,214 | 30 | ||||||
Belden, Inc. | 5,983 | 383 | ||||||
Chase Corp. | 426 | 13 | ||||||
Checkpoint Systems, Inc. * | 5,169 | 63 | ||||||
Cognex Corp. * | 9,590 | 386 | ||||||
Compx International, Inc. | 1 | – | ||||||
ESCO Technologies, Inc. | 2,932 | 102 | ||||||
Espey Manufacturing & Electronics Corp. | 3,300 | 66 | ||||||
FARO Technologies, Inc. * | 3,744 | 190 | ||||||
Generac Holdings, Inc. * | 6,497 | 263 | ||||||
General Cable Corp. | 5,686 | 86 | ||||||
Global Power Equipment Group, Inc. | 3,336 | 50 | ||||||
Houston Wire & Cable Co. | 1,544 | 19 | ||||||
InvenSense, Inc. * | 5,600 | 110 | ||||||
Itron, Inc. * | 3,761 | 148 | ||||||
Landauer, Inc. | 2,743 | 91 | ||||||
Littelfuse, Inc. | 2,408 | 205 | ||||||
LSI Industries, Inc. | 928 | 6 | ||||||
Measurement Specialties, Inc. * | 2,513 | 215 | ||||||
Mesa Laboratories, Inc. | 1,469 | 85 | ||||||
MOCON, Inc. | 5,420 | 81 | ||||||
NL Industries, Inc. | 2,807 | 21 | ||||||
Nortek, Inc. * | 100 | 7 | ||||||
Orion Energy Systems, Inc. * | 1,050 | 6 | ||||||
OSI Systems, Inc. * | 2,204 | 140 | ||||||
Powell Industries, Inc. | 2,381 | 97 | ||||||
Preformed Line Products Co. | 698 | 37 | ||||||
Stoneridge, Inc. * | 803 | 9 | ||||||
Watts Water Technologies, Inc., Class A | 3,655 | 213 | ||||||
4,084 | ||||||||
Engineering & Construction Services – 0.9% |
| |||||||
Comfort Systems USA, Inc. | 5,776 | 78 | ||||||
Dycom Industries, Inc. * | 5,739 | 176 | ||||||
EMCOR Group, Inc. | 7,535 | 301 | ||||||
Exponent, Inc. | 2,526 | 179 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Engineering & Construction Services – 0.9% – continued |
| |||||||
Granite Construction, Inc. | 5,631 | $179 | ||||||
Great Lakes Dredge & Dock Corp. * | 3,118 | 19 | ||||||
Integrated Electrical Services, Inc. * | 1,238 | 10 | ||||||
Kimball International, Inc., Class B | 2,871 | 43 | ||||||
Kratos Defense & Security Solutions, Inc. * | 357 | 3 | ||||||
MasTec, Inc. * | 6,375 | 195 | ||||||
MYR Group, Inc. * | 2,005 | 48 | ||||||
Orion Marine Group, Inc. * | 917 | 9 | ||||||
Pike Corp. * | 7,274 | 87 | ||||||
Sterling Construction Co., Inc. * | 354 | 3 | ||||||
Team, Inc. * | 2,911 | 111 | ||||||
TRC Cos., Inc. * | 1,548 | 10 | ||||||
VSE Corp. | 1,311 | 64 | ||||||
Willbros Group, Inc. * | 8,260 | 69 | ||||||
1,584 | ||||||||
Forest & Paper Products – 0.6% | ||||||||
KapStone Paper and Packaging Corp. * | 8,926 | 250 | ||||||
Neenah Paper, Inc. | 5,250 | 281 | ||||||
PH Glatfelter Co. | 7,586 | 166 | ||||||
Resolute Forest Products, Inc. * | 7,741 | 121 | ||||||
Schweitzer-Mauduit International, Inc. | 5,158 | 213 | ||||||
Wausau Paper Corp. | 3,132 | 25 | ||||||
1,056 | ||||||||
Gaming, Lodging & Restaurants – 2.7% |
| |||||||
Belmond Ltd., Class A * | 5,320 | 62 | ||||||
Biglari Holdings, Inc. * | 229 | 78 | ||||||
BJ’s Restaurants, Inc. * | 2,544 | 91 | ||||||
Bob Evans Farms, Inc. | 3,609 | 171 | ||||||
Boyd Gaming Corp. * | 935 | 9 | ||||||
Buffalo Wild Wings, Inc. * | 2,368 | 318 | ||||||
Carrols Restaurant Group, Inc. * | 1,058 | 7 | ||||||
Cheesecake Factory (The), Inc. | 6,101 | 278 | ||||||
Choice Hotels International, Inc. | 2,300 | 120 | ||||||
Churchill Downs, Inc. | 1,905 | 186 | ||||||
Cracker Barrel Old Country Store, Inc. | 2,556 | 264 | ||||||
Denny’s Corp. * | 1,652 | 12 | ||||||
DineEquity, Inc. | 2,241 | 183 | ||||||
Einstein Noah Restaurant Group, Inc. | 7,526 | 152 | ||||||
Famous Dave’s of America, Inc. * | 1,817 | 49 | ||||||
Fiesta Restaurant Group, Inc. * | 1,158 | 57 | ||||||
Frisch’s Restaurants, Inc. | 2,750 | 78 | ||||||
Isle of Capri Casinos, Inc. * | 7,782 | 58 | ||||||
Jack in the Box, Inc. | 5,628 | 384 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 41 | EQUITY FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SMALL CAP CORE FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Gaming, Lodging & Restaurants – 2.7% – continued |
| |||||||
Kona Grill, Inc. * | 5,047 | $100 | ||||||
Krispy Kreme Doughnuts, Inc. * | 8,425 | 145 | ||||||
Lakes Entertainment, Inc. * | 1,500 | 12 | ||||||
Luby’s, Inc. * | 1,073 | 6 | ||||||
Marriott Vacations Worldwide Corp. * | 3,100 | 196 | ||||||
Monarch Casino & Resort, Inc. * | 742 | 9 | ||||||
Morgans Hotel Group Co. * | 6,591 | 53 | ||||||
Multimedia Games Holding Co., Inc. * | 1,338 | 48 | ||||||
Nathan’s Famous, Inc. * | 1,400 | 95 | ||||||
Papa John’s International, Inc. | 4,118 | 165 | ||||||
Pinnacle Entertainment, Inc. * | 6,870 | 172 | ||||||
Popeyes Louisiana Kitchen, Inc. * | 3,156 | 128 | ||||||
Red Lion Hotels Corp. * | 920 | 5 | ||||||
Red Robin Gourmet Burgers, Inc. * | 5,192 | 295 | ||||||
Ruby Tuesday, Inc. * | 11,014 | 65 | ||||||
Ruth’s Hospitality Group, Inc. | 2,539 | 28 | ||||||
Scientific Games Corp., Class A * | 7,048 | 76 | ||||||
Sonic Corp. * | 9,687 | 217 | ||||||
Texas Roadhouse, Inc. | 7,946 | 221 | ||||||
Wendy’s (The) Co. | 30,800 | 254 | ||||||
4,847 | ||||||||
Hardware – 3.2% | ||||||||
ADTRAN, Inc. | 7,800 | 160 | ||||||
ARRIS Group, Inc. * | 11,272 | 320 | ||||||
Aruba Networks, Inc. * | 11,200 | 242 | ||||||
Astro-Med, Inc. | 563 | 7 | ||||||
Ciena Corp. * | 11,043 | 185 | ||||||
Communications Systems, Inc. | 2,431 | 27 | ||||||
Comtech Telecommunications Corp. | 2,793 | 104 | ||||||
Cray, Inc. * | 3,259 | 86 | ||||||
Daktronics, Inc. | 8,656 | 106 | ||||||
Datalink Corp. * | 4,559 | 48 | ||||||
Digimarc Corp. | 1,990 | 41 | ||||||
Electronics For Imaging, Inc. * | 5,600 | 247 | ||||||
Emerson Radio Corp. | 2,592 | 5 | ||||||
Extreme Networks, Inc. * | 4,748 | 23 | ||||||
FEI Co. | 4,382 | 331 | ||||||
Finisar Corp. * | 10,110 | 168 | ||||||
Harmonic, Inc. * | 9,635 | 61 | ||||||
Immersion Corp. * | 1,674 | 14 | ||||||
Infinera Corp. * | 8,449 | 90 | ||||||
InterDigital, Inc. | 4,713 | 188 | ||||||
Ixia * | 7,434 | 68 | ||||||
Kopin Corp. * | 5,483 | 19 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Hardware – 3.2% – continued | ||||||||
KVH Industries, Inc. * | 5,394 | $61 | ||||||
Lexmark International, Inc., Class A | 7,600 | 323 | ||||||
Loral Space & Communications, Inc. * | 1,832 | 132 | ||||||
NETGEAR, Inc. * | 4,144 | 130 | ||||||
NetScout Systems, Inc. * | 5,486 | 251 | ||||||
Numerex Corp., Class A * | 1,538 | 16 | ||||||
Oplink Communications, Inc. | 6,032 | 101 | ||||||
PAR Technology Corp. * | 3,219 | 16 | ||||||
PC-Tel, Inc. | 1,058 | 8 | ||||||
Plantronics, Inc. | 5,191 | 248 | ||||||
Polycom, Inc. * | 13,600 | 167 | ||||||
Procera Networks, Inc. * | 3,300 | 32 | ||||||
Qumu Corp. * | 212 | 3 | ||||||
Riverbed Technology, Inc. * | 906 | 17 | ||||||
Rovi Corp. * | 10,200 | 201 | ||||||
Sanmina Corp. * | 10,167 | 212 | ||||||
Silicon Graphics International Corp. * | 4,651 | 43 | ||||||
Sonus Networks, Inc. * | 15,055 | 51 | ||||||
Super Micro Computer, Inc. * | 4,039 | 119 | ||||||
Synaptics, Inc. * | 4,108 | 301 | ||||||
TiVo, Inc. * | 12,563 | 161 | ||||||
Transact Technologies, Inc. | 651 | 4 | ||||||
Universal Electronics, Inc. * | 1,181 | 58 | ||||||
UTStarcom Holdings Corp. * | 1,484 | 5 | ||||||
ViaSat, Inc. * | 4,280 | 236 | ||||||
Viasystems Group, Inc. * | 2,843 | 45 | ||||||
Vishay Precision Group, Inc. * | 165 | 2 | ||||||
Vocera Communications, Inc. * | 2,100 | 17 | ||||||
VOXX International Corp. * | 763 | 7 | ||||||
Zebra Technologies Corp., Class A * | 5,600 | 397 | ||||||
5,904 | ||||||||
Health Care Facilities & Services – 3.6% |
| |||||||
Acadia Healthcare Co., Inc. * | 4,400 | 213 | ||||||
Addus HomeCare Corp. * | 5,512 | 108 | ||||||
Air Methods Corp. * | 5,561 | 309 | ||||||
Alliance HealthCare Services, Inc. * | 6,382 | 144 | ||||||
Almost Family, Inc. * | 4,230 | 115 | ||||||
Amsurg Corp. * | 4,247 | 213 | ||||||
Bio-Reference Laboratories, Inc. * | 5,024 | 141 | ||||||
BioScrip, Inc. * | 4,472 | 31 | ||||||
Brookdale Senior Living, Inc. * | 4,755 | 153 | ||||||
Capital Senior Living Corp. * | 3,266 | 69 | ||||||
Centene Corp. * | 5,573 | 461 |
See Notes to the Financial Statements.
EQUITY FUNDS | 42 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Health Care Facilities & Services – 3.6% – continued |
| |||||||
Charles River Laboratories International, Inc. * | 300 | $18 | ||||||
Chemed Corp. | 3,352 | 345 | ||||||
Digirad Corp. | 1,644 | 7 | ||||||
Ensign Group (The), Inc. | 3,919 | 136 | ||||||
ExamWorks Group, Inc. * | 6,705 | 220 | ||||||
Genomic Health, Inc. * | 2,100 | 59 | ||||||
Gentiva Health Services, Inc. * | 7,000 | 117 | ||||||
Hanger, Inc. * | 4,395 | 90 | ||||||
HealthSouth Corp. | 10,315 | 381 | ||||||
Healthways, Inc. * | 4,800 | 77 | ||||||
Independence Holding Co. | 746 | 10 | ||||||
IPC The Hospitalist Co., Inc. * | 2,642 | 118 | ||||||
Kindred Healthcare, Inc. | 6,316 | 123 | ||||||
LHC Group, Inc. * | 2,793 | 65 | ||||||
LifePoint Hospitals, Inc. * | 5,300 | 367 | ||||||
Magellan Health, Inc. * | 3,985 | 218 | ||||||
Medcath Corp. (1)* | 7,953 | – | ||||||
Molina Healthcare, Inc. * | 3,958 | 167 | ||||||
National Healthcare Corp. | 2,960 | 164 | ||||||
Owens & Minor, Inc. | 6,797 | 223 | ||||||
PAREXEL International Corp. * | 6,846 | 432 | ||||||
PharMerica Corp. * | 6,198 | 151 | ||||||
Select Medical Holdings Corp. | 8,400 | 101 | ||||||
Skilled Healthcare Group, Inc., Class A * | 12,164 | 80 | ||||||
Team Health Holdings, Inc. * | 6,900 | 400 | ||||||
Triple-S Management Corp., Class B * | 5,993 | 119 | ||||||
U.S. Physical Therapy, Inc. | 3,376 | 120 | ||||||
WellCare Health Plans, Inc. * | 4,818 | 291 | ||||||
6,556 | ||||||||
Home & Office Products – 1.5% | ||||||||
ACCO Brands Corp. * | 8,898 | 61 | ||||||
American Woodmark Corp. * | 2,946 | 109 | ||||||
AV Homes, Inc. * | 5,232 | 77 | ||||||
Beazer Homes USA, Inc. * | 156 | 3 | ||||||
Blount International, Inc. * | 4,712 | 71 | ||||||
Cavco Industries, Inc. * | 2,461 | 167 | ||||||
CSS Industries, Inc. | 1,191 | 29 | ||||||
Flexsteel Industries, Inc. | 4,302 | 145 | ||||||
Griffon Corp. | 5,614 | 64 | ||||||
Herman Miller, Inc. | 4,751 | 142 | ||||||
HNI Corp. | 4,707 | 169 | ||||||
Hooker Furniture Corp. | 4,613 | 70 | ||||||
Hovnanian Enterprises, Inc., Class A * | 1,350 | 5 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Home & Office Products – 1.5% – continued |
| |||||||
Interface, Inc. | 6,689 | $108 | ||||||
iRobot Corp. * | 2,838 | 86 | ||||||
KB Home | 6,807 | 102 | ||||||
Knoll, Inc. | 6,043 | 105 | ||||||
La-Z-Boy, Inc. | 6,679 | 132 | ||||||
M/I Homes, Inc. * | 2,110 | 42 | ||||||
Mattress Firm Holding Corp. * | 1,900 | 114 | ||||||
MDC Holdings, Inc. | 5,779 | 146 | ||||||
Meritage Homes Corp. * | 4,414 | 157 | ||||||
NACCO Industries, Inc., Class A | 1,207 | 60 | ||||||
Nobility Homes, Inc. * | 858 | 9 | ||||||
Quanex Building Products Corp. | 3,404 | 62 | ||||||
Ryland Group (The), Inc. | 4,003 | 133 | ||||||
Select Comfort Corp. * | 5,835 | 122 | ||||||
St. Joe (The) Co. * | 5,413 | 108 | ||||||
Standard Pacific Corp. * | 7,500 | 56 | ||||||
Stanley Furniture Co., Inc. * | 1,105 | 3 | ||||||
Steelcase, Inc., Class A | 9,635 | 156 | ||||||
Virco Manufacturing Corp. * | 1,533 | 4 | ||||||
2,817 | ||||||||
Industrial Services – 0.6% |
| |||||||
Applied Industrial Technologies, Inc. | 5,329 | 243 | ||||||
DXP Enterprises, Inc. * | 1,123 | 83 | ||||||
Electro Rent Corp. | 5,078 | 70 | ||||||
Furmanite Corp. * | 7,381 | 50 | ||||||
H&E Equipment Services, Inc. | 1,885 | 76 | ||||||
Kaman Corp. | 3,466 | 136 | ||||||
TAL International Group, Inc. * | 2,809 | 116 | ||||||
Titan Machinery, Inc. * | 632 | 8 | ||||||
Watsco, Inc. | 3,119 | 269 | ||||||
1,051 | ||||||||
Institutional Financial Services – 0.6% |
| |||||||
BGC Partners, Inc., Class A | 1,530 | 11 | ||||||
Evercore Partners, Inc., Class A | 3,235 | 152 | ||||||
FBR & Co. * | 955 | 26 | ||||||
GFI Group, Inc. | 8,594 | 46 | ||||||
Greenhill & Co., Inc. | 2,600 | 121 | ||||||
Interactive Brokers Group, Inc., Class A | 6,396 | 160 | ||||||
INTL. FCStone, Inc. * | 3,385 | 59 | ||||||
Investment Technology Group, Inc. * | 7,952 | 125 | ||||||
JMP Group, Inc. | 644 | 4 | ||||||
Piper Jaffray Cos. * | 2,191 | 114 | ||||||
Stifel Financial Corp. * | 5,514 | 259 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 43 | EQUITY FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SMALL CAP CORE FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Institutional Financial Services – 0.6% – continued |
| |||||||
SWS Group, Inc. * | 1,990 | $14 | ||||||
1,091 | ||||||||
Insurance – 3.0% |
| |||||||
Ambac Financial Group, Inc. * | 4,100 | 91 | ||||||
American Equity Investment Life Holding Co. | 7,441 | 170 | ||||||
AMERISAFE, Inc. | 3,031 | 118 | ||||||
AmTrust Financial Services, Inc. | 4,434 | 177 | ||||||
Argo Group International Holdings Ltd. | 3,777 | 190 | ||||||
Aspen Insurance Holdings Ltd. | 35 | 1 | ||||||
Atlantic American Corp. | 6,501 | 26 | ||||||
Baldwin & Lyons, Inc., Class B | 2,846 | 70 | ||||||
Citizens, Inc. * | 9,548 | 62 | ||||||
CNO Financial Group, Inc. | 22,070 | 374 | ||||||
Crawford & Co., Class B | 13,444 | 111 | ||||||
Donegal Group, Inc., Class A | 1,246 | 19 | ||||||
eHealth, Inc. * | 4,009 | 97 | ||||||
EMC Insurance Group, Inc. | 4,519 | 130 | ||||||
Employers Holdings, Inc. | 5,233 | 101 | ||||||
Endurance Specialty Holdings Ltd. | 4,410 | 243 | ||||||
FBL Financial Group, Inc., Class A | 1,589 | 71 | ||||||
First Acceptance Corp. * | 2,414 | 6 | ||||||
GAINSCO, Inc. * | 614 | 5 | ||||||
Global Indemnity PLC * | 459 | 12 | ||||||
Greenlight Capital Re Ltd., Class A * | 3,400 | 110 | ||||||
Hallmark Financial Services, Inc. * | 640 | 7 | ||||||
Hanover Insurance Group (The), Inc. | 5,455 | 335 | ||||||
Hilltop Holdings, Inc. * | 5,753 | 115 | ||||||
Horace Mann Educators Corp. | 3,212 | 92 | ||||||
Infinity Property & Casualty Corp. | 2,227 | 143 | ||||||
Kansas City Life Insurance Co. | 1,595 | 71 | ||||||
Kemper Corp. | 4,408 | 150 | ||||||
Maiden Holdings Ltd. | 164 | 2 | ||||||
Meadowbrook Insurance Group, Inc. | 2,883 | 17 | ||||||
Mercury General Corp. | 2,500 | 122 | ||||||
Montpelier Re Holdings Ltd. | 7,701 | 239 | ||||||
National Interstate Corp. | 2,645 | 74 | ||||||
National Western Life Insurance Co., Class A | 463 | 114 | ||||||
Navigators Group (The), Inc. * | 1,100 | 68 | ||||||
OneBeacon Insurance Group Ltd., Class A | 3,395 | 52 | ||||||
Phoenix (The) Cos., Inc. * | 253 | 14 | ||||||
Platinum Underwriters Holdings Ltd. | 4,103 | 250 | ||||||
Primerica, Inc. | 4,874 | 235 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Insurance – 3.0% – continued | ||||||||
Primus Guaranty Ltd. * | 1,524 | $3 | ||||||
Radian Group, Inc. | 11,559 | 165 | ||||||
RLI Corp. | 5,056 | 219 | ||||||
Safety Insurance Group, Inc. | 2,023 | 109 | ||||||
Selective Insurance Group, Inc. | 4,729 | 105 | ||||||
StanCorp Financial Group, Inc. | 4,414 | 279 | ||||||
Symetra Financial Corp. | 8,441 | 197 | ||||||
Unico American Corp. * | 114 | 1 | ||||||
United Fire Group, Inc. | 4,020 | 112 | ||||||
Universal Insurance Holdings, Inc. | 1,237 | 16 | ||||||
5,490 | ||||||||
Iron & Steel – 0.6% | ||||||||
A.M. Castle & Co. * | 4,310 | 37 | ||||||
Commercial Metals Co. | 12,664 | 216 | ||||||
Haynes International, Inc. | 2,029 | 93 | ||||||
Northwest Pipe Co. * | 3,521 | 120 | ||||||
Olympic Steel, Inc. | 2,390 | 49 | ||||||
Shiloh Industries, Inc. * | 1,218 | 21 | ||||||
SunCoke Energy, Inc. * | 7,900 | 177 | ||||||
Universal Stainless & Alloy Products, Inc. * | 2,219 | 59 | ||||||
Worthington Industries, Inc. | 7,124 | 265 | ||||||
1,037 | ||||||||
Leisure Products – 0.7% | ||||||||
Arctic Cat, Inc. | 2,943 | 102 | ||||||
Brunswick Corp. | 9,820 | 414 | ||||||
Callaway Golf Co. | 8,936 | 65 | ||||||
Drew Industries, Inc. | 5,285 | 223 | ||||||
Johnson Outdoors, Inc., Class A | 2,972 | 77 | ||||||
LeapFrog Enterprises, Inc. * | 3,255 | 19 | ||||||
Marine Products Corp. | 2,110 | 17 | ||||||
Thor Industries, Inc. | 4,091 | 211 | ||||||
Winnebago Industries, Inc. * | 3,694 | 80 | ||||||
1,208 | ||||||||
Machinery – 2.3% | ||||||||
Alamo Group, Inc. | 914 | 38 | ||||||
Altra Industrial Motion Corp. | 5,361 | 156 | ||||||
Astec Industries, Inc. | 2,663 | 97 | ||||||
Briggs & Stratton Corp. | 5,191 | 94 | ||||||
CIRCOR International, Inc. | 2,229 | 150 | ||||||
ClearSign Combustion Corp. * | 7,500 | 50 | ||||||
Columbus McKinnon Corp. | 1,141 | 25 | ||||||
Curtiss-Wright Corp. | 4,543 | 300 | ||||||
Federal Signal Corp. | 11,351 | 150 |
See Notes to the Financial Statements.
EQUITY FUNDS | 44 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Machinery – 2.3% – continued | ||||||||
Franklin Electric Co., Inc. | 5,486 | $191 | ||||||
Gorman-Rupp (The) Co. | 4,138 | 124 | ||||||
Graham Corp. | 2,021 | 58 | ||||||
Hillenbrand, Inc. | 7,437 | 230 | ||||||
Hollysys Automation Technologies Ltd. * | 3,302 | 74 | ||||||
Hurco Cos., Inc. | 880 | 33 | ||||||
Hyster-Yale Materials Handling, Inc. | 2,014 | 144 | ||||||
John Bean Technologies Corp. | 3,100 | 87 | ||||||
Kadant, Inc. | 700 | 27 | ||||||
Key Technology, Inc. * | 3,860 | 51 | ||||||
Lindsay Corp. | 2,080 | 156 | ||||||
Middleby (The) Corp. * | 6,600 | 582 | ||||||
MSA Safety, Inc. | 3,081 | 152 | ||||||
MTS Systems Corp. | 3,520 | 240 | ||||||
Mueller Water Products, Inc., Class A | 14,767 | 122 | ||||||
Raven Industries, Inc. | 4,634 | 113 | ||||||
Rofin-Sinar Technologies, Inc. * | 4,165 | 96 | ||||||
SL Industries, Inc. * | 739 | 36 | ||||||
Standex International Corp. | 2,533 | 188 | ||||||
Sun Hydraulics Corp. | 2,849 | 107 | ||||||
Tennant Co. | 2,390 | 160 | ||||||
Titan International, Inc. | 6,871 | 81 | ||||||
Twin Disc, Inc. | 2,217 | 60 | ||||||
4,172 | ||||||||
Manufactured Goods – 1.1% | ||||||||
Aegion Corp. * | 5,615 | 125 | ||||||
AZZ, Inc. | 4,418 | 184 | ||||||
Barnes Group, Inc. | 5,033 | 153 | ||||||
Chart Industries, Inc. * | 3,609 | 221 | ||||||
Dynamic Materials Corp. | 2,580 | 49 | ||||||
Eastern (The) Co. | 3,234 | 52 | ||||||
EnPro Industries, Inc. * | 3,313 | 200 | ||||||
Gibraltar Industries, Inc. * | 1,248 | 17 | ||||||
Insteel Industries, Inc. | 1,500 | 31 | ||||||
LB Foster Co., Class A | 1,399 | 64 | ||||||
Mueller Industries, Inc. | 9,102 | 260 | ||||||
NCI Building Systems, Inc. * | 171 | 3 | ||||||
Omega Flex, Inc. | 455 | 9 | ||||||
Proto Labs, Inc. * | 2,400 | 166 | ||||||
RBC Bearings, Inc. | 3,411 | 193 | ||||||
Rogers Corp. * | 2,800 | 153 | ||||||
RTI International Metals, Inc. * | 4,041 | 100 | ||||||
Simpson Manufacturing Co., Inc. | 4,003 | 117 | ||||||
2,097 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Media – 1.2% | ||||||||
Blucora, Inc. * | 2,410 | $37 | ||||||
Conversant, Inc. * | 8,021 | 275 | ||||||
Crown Media Holdings, Inc., Class A * | 3,297 | 10 | ||||||
DreamWorks Animation SKG, Inc., Class A * | 7,524 | 205 | ||||||
Entercom Communications Corp., Class A * | 5,047 | 40 | ||||||
Harte-Hanks, Inc. | 5,784 | 37 | ||||||
HealthStream, Inc. * | 3,889 | 93 | ||||||
Journal Communications, Inc., Class A * | 3,428 | 29 | ||||||
Marchex, Inc., Class B | 2,671 | 11 | ||||||
Meredith Corp. | 4,021 | 172 | ||||||
Move, Inc. * | 1,986 | 42 | ||||||
Move, Inc. – (Fractional Shares) (1)* | 25,000 | – | ||||||
National CineMedia, Inc. | 3,895 | 56 | ||||||
New Media Investment Group, Inc. | 1,266 | 21 | ||||||
New York Times (The) Co., Class A | 15,127 | 170 | ||||||
Nexstar Broadcasting Group, Inc., Class A | 1,600 | 65 | ||||||
Orbitz Worldwide, Inc. * | 2,462 | 19 | ||||||
Reis, Inc. | 1,941 | 46 | ||||||
Saga Communications, Inc., Class A | 796 | 27 | ||||||
Scholastic Corp. | 3,081 | 100 | ||||||
Shutterfly, Inc. * | 3,162 | 154 | ||||||
Sinclair Broadcast Group, Inc., Class A | 4,751 | 124 | ||||||
Travelzoo, Inc. * | 2,939 | 46 | ||||||
Trulia, Inc. * | 414 | 20 | ||||||
WebMD Health Corp. * | 5,895 | 246 | ||||||
World Wrestling Entertainment, Inc., Class A | 5,941 | 82 | ||||||
XO Group, Inc. * | 500 | 6 | ||||||
2,133 | ||||||||
Medical Equipment & Devices – 4.1% | ||||||||
Abaxis, Inc. | 2,796 | 142 | ||||||
ABIOMED, Inc. * | 5,927 | 147 | ||||||
Accuray, Inc. * | 538 | 4 | ||||||
Affymetrix, Inc. * | 5,625 | 45 | ||||||
Alere, Inc. * | 6,700 | 260 | ||||||
Align Technology, Inc. * | 7,912 | 409 | ||||||
Alphatec Holdings, Inc. * | 1,344 | 2 | ||||||
Analogic Corp. | 2,039 | 130 | ||||||
AngioDynamics, Inc. * | 7,863 | 108 | ||||||
AtriCure, Inc. * | 1,966 | 29 | ||||||
Atrion Corp. | 508 | 155 | ||||||
Baxano Surgical, Inc. * | 1,786 | – | ||||||
BioTelemetry, Inc. * | 1,210 | 8 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 45 | EQUITY FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SMALL CAP CORE FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Medical Equipment & Devices – 4.1% – continued |
| |||||||
Bovie Medical Corp. * | 1,160 | $5 | ||||||
Cardiovascular Systems, Inc. * | 4,762 | 113 | ||||||
Cepheid, Inc. * | 8,169 | 360 | ||||||
CONMED Corp. | 3,826 | 141 | ||||||
CryoLife, Inc. | 923 | 9 | ||||||
Cutera, Inc. * | 4,310 | 44 | ||||||
Cyberonics, Inc. * | 3,125 | 160 | ||||||
Cynosure, Inc., Class A * | 6,090 | 128 | ||||||
Daxor Corp. | 522 | 3 | ||||||
Derma Sciences, Inc. * | 9,600 | 80 | ||||||
DexCom, Inc. * | 2,038 | 82 | ||||||
Endologix, Inc. * | 3,840 | 41 | ||||||
Exact Sciences Corp. * | 5,000 | 97 | ||||||
Exactech, Inc. * | 5,672 | 130 | ||||||
Globus Medical, Inc., Class A * | 6,000 | 118 | ||||||
Greatbatch, Inc. * | 4,190 | 179 | ||||||
Haemonetics Corp. * | 6,984 | 244 | ||||||
Hansen Medical, Inc. * | 1,520 | 2 | ||||||
Harvard Apparatus Regenerative Technology, Inc. * | 449 | 4 | ||||||
Harvard Bioscience, Inc. * | 1,797 | 7 | ||||||
HeartWare International, Inc. * | 1,900 | 148 | ||||||
Hill-Rom Holdings, Inc. | 4,800 | 199 | ||||||
ICU Medical, Inc. * | 2,481 | 159 | ||||||
Insulet Corp. * | 1,776 | 65 | ||||||
Integra LifeSciences Holdings Corp. * | 2,983 | 148 | ||||||
Iridex Corp. * | 100 | 1 | ||||||
LeMaitre Vascular, Inc. | 11,223 | 77 | ||||||
Luminex Corp. * | 4,897 | 95 | ||||||
Masimo Corp. * | 6,598 | 140 | ||||||
Medical Action Industries, Inc. * | 5,484 | 76 | ||||||
Meridian Bioscience, Inc. | 4,029 | 71 | ||||||
Merit Medical Systems, Inc. * | 6,586 | 78 | ||||||
Natus Medical, Inc. * | 8,282 | 244 | ||||||
Neogen Corp. * | 3,898 | 154 | ||||||
NuVasive, Inc. * | 7,498 | 261 | ||||||
NxStage Medical, Inc. * | 4,160 | 55 | ||||||
OPKO Health, Inc. * | 8,455 | 72 | ||||||
OraSure Technologies, Inc. * | 10,534 | 76 | ||||||
Orthofix International N.V. * | 3,735 | 116 | ||||||
Quidel Corp. * | 5,217 | 140 | ||||||
Rockwell Medical, Inc. * | 917 | 8 | ||||||
RTI Surgical, Inc. * | 3,308 | 16 | ||||||
Span-America Medical Systems, Inc. | 2,086 | 39 | ||||||
Sparton Corp. * | 652 | 16 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Medical Equipment & Devices – 4.1% – continued |
| |||||||
Spectranetics (The) Corp. * | 4,673 | $124 | ||||||
STERIS Corp. | 6,209 | 335 | ||||||
SurModics, Inc. * | 4,642 | 84 | ||||||
Symmetry Medical, Inc. * | 8,443 | 85 | ||||||
Thoratec Corp. * | 6,145 | 164 | ||||||
Utah Medical Products, Inc. | 2,064 | 101 | ||||||
Vascular Solutions, Inc. * | 4,503 | 111 | ||||||
Volcano Corp. * | 5,473 | 58 | ||||||
West Pharmaceutical Services, Inc. | 8,876 | 397 | ||||||
Wright Medical Group, Inc. * | 4,677 | 142 | ||||||
7,441 | ||||||||
Metals & Mining – 0.4% | ||||||||
Encore Wire Corp. | 1,171 | 44 | ||||||
Harsco Corp. | 8,700 | 186 | ||||||
Horsehead Holding Corp. * | 7,128 | 118 | ||||||
Kaiser Aluminum Corp. | 2,153 | 164 | ||||||
US Silica Holdings, Inc. | 3,700 | 231 | ||||||
743 | ||||||||
Oil, Gas & Coal – 4.6% | ||||||||
Adams Resources & Energy, Inc. | 2,285 | 101 | ||||||
Alon USA Energy, Inc. | 4,886 | 70 | ||||||
Alpha Natural Resources, Inc. * | 12,800 | 32 | ||||||
Approach Resources, Inc. * | 2,933 | 42 | ||||||
Basic Energy Services, Inc. * | 8,156 | 177 | ||||||
Bill Barrett Corp. * | 3,100 | 68 | ||||||
Bolt Technology Corp. | 5,255 | 115 | ||||||
Bonanza Creek Energy, Inc. * | 3,200 | 182 | ||||||
Bristow Group, Inc. | 4,067 | 273 | ||||||
C&J Energy Services, Inc. * | 4,700 | 144 | ||||||
Callon Petroleum Co. * | 5,342 | 47 | ||||||
CARBO Ceramics, Inc. | 1,600 | 95 | ||||||
Carrizo Oil & Gas, Inc. * | 7,052 | 380 | ||||||
Clayton Williams Energy, Inc. * | 1,883 | 182 | ||||||
Clean Energy Fuels Corp. * | 4,072 | 32 | ||||||
Comstock Resources, Inc. | 3,848 | 72 | ||||||
Contango Oil & Gas Co. * | 3,680 | 122 | ||||||
Dawson Geophysical Co. | 2,476 | 45 | ||||||
Delek US Holdings, Inc. | 2,923 | 97 | ||||||
Diamondback Energy, Inc. * | 2,200 | 164 | ||||||
Energy XXI Bermuda Ltd. | 11,122 | 126 | ||||||
EnLink Midstream LLC | 800 | 33 | ||||||
Evolution Petroleum Corp. | 6,152 | 56 | ||||||
Exterran Holdings, Inc. | 6,081 | 269 |
See Notes to the Financial Statements.
EQUITY FUNDS | 46 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Oil, Gas & Coal – 4.6% – continued | ||||||||
Flotek Industries, Inc. * | 5,600 | $146 | ||||||
Geospace Technologies Corp. * | 2,028 | 71 | ||||||
Goodrich Petroleum Corp. * | 2,800 | 41 | ||||||
Gran Tierra Energy, Inc. * | 32,756 | 181 | ||||||
Gulf Coast Ultra Deep Royalty Trust * | 12,774 | 26 | ||||||
Gulf Island Fabrication, Inc. | 3,793 | 65 | ||||||
Gulfmark Offshore, Inc., Class A | 2,971 | 93 | ||||||
Halcon Resources Corp. * | 4,036 | 16 | ||||||
Helix Energy Solutions Group, Inc. * | 10,950 | 242 | ||||||
Hercules Offshore, Inc. * | 23,283 | 51 | ||||||
Isramco, Inc. * | 1,466 | 179 | ||||||
Kodiak Oil & Gas Corp. * | 30,418 | 413 | ||||||
LinnCo LLC | 8,851 | 256 | ||||||
Matrix Service Co. * | 3,535 | 85 | ||||||
Mitcham Industries, Inc. * | 2,477 | 27 | ||||||
Natural Gas Services Group, Inc. * | 4,187 | 101 | ||||||
Newpark Resources, Inc. * | 11,712 | 146 | ||||||
Panhandle Oil and Gas, Inc., Class A | 3,029 | 181 | ||||||
PDC Energy, Inc. * | 3,094 | 156 | ||||||
Penn Virginia Corp. * | 10,400 | 132 | ||||||
PHI, Inc. (Non Voting) * | 3,370 | 139 | ||||||
Pioneer Energy Services Corp. * | 7,007 | 98 | ||||||
PowerSecure International, Inc. * | 1,080 | 10 | ||||||
PrimeEnergy Corp. * | 808 | 56 | ||||||
Rex Energy Corp. * | 4,704 | 60 | ||||||
Rosetta Resources, Inc. * | 6,309 | 281 | ||||||
Sanchez Energy Corp. * | 5,800 | 152 | ||||||
SandRidge Energy, Inc. * | 9,472 | 41 | ||||||
SEACOR Holdings, Inc. * | 2,200 | 165 | ||||||
SemGroup Corp., Class A | 4,874 | 406 | ||||||
Stone Energy Corp. * | 5,858 | 184 | ||||||
T.G.C. Industries, Inc. * | 5,695 | 22 | ||||||
Tesco Corp. | 8,200 | 163 | ||||||
TETRA Technologies, Inc. * | 7,251 | 78 | ||||||
Triangle Petroleum Corp. * | 3,061 | 34 | ||||||
VAALCO Energy, Inc. * | 9,511 | 81 | ||||||
W&T Offshore, Inc. | 5,047 | 55 | ||||||
Warren Resources, Inc. * | 2,378 | 13 | ||||||
Western Refining, Inc. | 6,997 | 294 | ||||||
Westmoreland Coal Co. * | 4,989 | 187 | ||||||
World Fuel Services Corp. | 6,937 | 277 | ||||||
8,328 | ||||||||
Passenger Transportation – 0.3% | ||||||||
Allegiant Travel Co. | 2,368 | 293 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Passenger Transportation – 0.3% – continued |
| |||||||
Hawaiian Holdings, Inc. * | 1,483 | $20 | ||||||
JetBlue Airways Corp. * | 20,005 | 212 | ||||||
Republic Airways Holdings, Inc. * | 1,218 | 13 | ||||||
SkyWest, Inc. | 6,499 | 51 | ||||||
589 | ||||||||
Real Estate – 0.3% | ||||||||
Alexander & Baldwin, Inc. | 4,830 | 174 | ||||||
Consolidated-Tomoka Land Co. | 1,787 | 88 | ||||||
Forestar Group, Inc. * | 5,608 | 99 | ||||||
Griffin Land & Nurseries, Inc. | 153 | 4 | ||||||
Kennedy-Wilson Holdings, Inc. | 5,962 | 143 | ||||||
Resource America, Inc., Class A | 1,529 | 14 | ||||||
Stratus Properties, Inc. * | 114 | 2 | ||||||
Tejon Ranch Co. * | 2,358 | 66 | ||||||
Trinity Place Holdings, Inc. * | 913 | 6 | ||||||
596 | ||||||||
Real Estate Investment Trusts – 8.0% | ||||||||
Acadia Realty Trust | 5,067 | 140 | ||||||
AG Mortgage Investment Trust, Inc. | 2,500 | 45 | ||||||
Agree Realty Corp. | 4,051 | 111 | ||||||
Alexander’s, Inc. | 463 | 173 | ||||||
American Assets Trust, Inc. | 3,407 | 112 | ||||||
American Realty Capital Properties, Inc. | 2,600 | 31 | ||||||
American Residential Properties, Inc. * | 2,400 | 44 | ||||||
AmREIT, Inc. | 2,900 | 67 | ||||||
Apollo Commercial Real Estate Finance, Inc. | 5,506 | 87 | ||||||
Apollo Residential Mortgage, Inc. | 2,700 | 42 | ||||||
Arbor Realty Trust, Inc. | 13,864 | 93 | ||||||
Ares Commercial Real Estate Corp. | 6,900 | 81 | ||||||
Armada Hoffler Properties, Inc. | 4,600 | 42 | ||||||
ARMOUR Residential REIT, Inc. | 39,000 | 150 | ||||||
Ashford Hospitality Prime, Inc. | 2,897 | 44 | ||||||
Ashford Hospitality Trust, Inc. | 14,486 | 148 | ||||||
Associated Estates Realty Corp. | 4,299 | 75 | ||||||
Aviv REIT, Inc. | 1,700 | 45 | ||||||
Blackstone Mortgage Trust, Inc., Class A | 1,879 | 51 | ||||||
Brandywine Realty Trust | 19,617 | 276 | ||||||
BRT Realty Trust * | 15,341 | 115 | ||||||
Campus Crest Communities, Inc. | 8,100 | 52 | ||||||
Capstead Mortgage Corp. | 9,555 | 117 | ||||||
CareTrust REIT, Inc. * | 3,919 | 56 | ||||||
CatchMark Timber Trust, Inc. Class A | 3,300 | 36 | ||||||
Cedar Realty Trust, Inc. | 12,882 | 76 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 47 | EQUITY FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SMALL CAP CORE FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Real Estate Investment Trusts – 8.0% – continued |
| |||||||
Chambers Street Properties | 24,500 | $185 | ||||||
Chatham Lodging Trust | 2,000 | 46 | ||||||
Cherry Hill Mortgage Investment Corp. | 2,300 | 43 | ||||||
Chesapeake Lodging Trust | 6,202 | 181 | ||||||
CIM Commercial Trust Corp. | 127 | 3 | ||||||
Colony Financial, Inc. | 8,140 | 182 | ||||||
CoreSite Realty Corp. | 2,186 | 72 | ||||||
Corporate Office Properties Trust | 8,900 | 229 | ||||||
Cousins Properties, Inc. | 17,446 | 208 | ||||||
CubeSmart | 17,109 | 308 | ||||||
CyrusOne, Inc. | 2,200 | 53 | ||||||
DCT Industrial Trust, Inc. | 32,783 | 246 | ||||||
DiamondRock Hospitality Co. | 22,158 | 281 | ||||||
DuPont Fabros Technology, Inc. | 7,983 | 216 | ||||||
Dynex Capital, Inc. | 6,084 | 49 | ||||||
EastGroup Properties, Inc. | 3,670 | 222 | ||||||
Education Realty Trust, Inc. | 11,935 | 123 | ||||||
Ellington Residential Mortgage REIT | 2,700 | 44 | ||||||
EPR Properties | 6,405 | 325 | ||||||
Equity Commonwealth | 8,548 | 220 | ||||||
Equity One, Inc. | 8,063 | 174 | ||||||
Excel Trust, Inc. | 4,517 | 53 | ||||||
FelCor Lodging Trust, Inc. | 12,015 | 112 | ||||||
First Industrial Realty Trust, Inc. | 9,952 | 168 | ||||||
First Potomac Realty Trust | 8,367 | 98 | ||||||
Franklin Street Properties Corp. | 11,039 | 124 | ||||||
Geo Group (The), Inc. | 9,325 | 356 | ||||||
Getty Realty Corp. | 3,744 | 64 | ||||||
Gladstone Commercial Corp. | 6,181 | 105 | ||||||
Glimcher Realty Trust | 15,420 | 209 | ||||||
Gramercy Property Trust, Inc. | 10,428 | 60 | ||||||
Gyrodyne Co. of America, Inc. | 744 | 4 | ||||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 3,400 | 47 | ||||||
Healthcare Realty Trust, Inc. | 11,251 | 266 | ||||||
Hersha Hospitality Trust | 19,066 | 121 | ||||||
Highwoods Properties, Inc. | 9,269 | 361 | ||||||
Hudson Pacific Properties, Inc. | 3,440 | 85 | ||||||
Inland Real Estate Corp. | 9,728 | 96 | ||||||
Investors Real Estate Trust | 10,187 | 78 | ||||||
iStar Financial, Inc. * | 7,844 | 106 | ||||||
JAVELIN Mortgage Investment Corp. | 3,400 | 41 | ||||||
Kite Realty Group Trust | 379 | 9 | ||||||
LaSalle Hotel Properties | 10,320 | 353 | ||||||
Lexington Realty Trust | 16,433 | 161 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Real Estate Investment Trusts – 8.0% – continued |
| |||||||
LTC Properties, Inc. | 2,805 | $103 | ||||||
Medical Properties Trust, Inc. | 14,960 | 183 | ||||||
Monmouth Real Estate Investment Corp. | 6,532 | 66 | ||||||
National Health Investors, Inc. | 3,670 | 210 | ||||||
New Residential Investment Corp. | 21,347 | 124 | ||||||
New York Mortgage Trust, Inc. | 8,425 | 61 | ||||||
Newcastle Investment Corp. | 12,149 | 154 | ||||||
NorthStar Realty Finance Corp. | 6,361 | 112 | ||||||
One Liberty Properties, Inc. | 3,598 | 73 | ||||||
Parkway Properties, Inc. | 6,696 | 126 | ||||||
Pebblebrook Hotel Trust | 5,675 | 212 | ||||||
Pennsylvania Real Estate Investment Trust | 7,098 | 142 | ||||||
PennyMac Mortgage Investment Trust | 6,540 | 140 | ||||||
Physicians Realty Trust | 3,200 | 44 | ||||||
Post Properties, Inc. | 6,019 | 309 | ||||||
Potlatch Corp. | 4,574 | 184 | ||||||
PS Business Parks, Inc. | 1,922 | 146 | ||||||
QTS Realty Trust, Inc., Class A | 1,600 | 49 | ||||||
RAIT Financial Trust | 16,596 | 123 | ||||||
Ramco-Gershenson Properties Trust | 7,848 | 128 | ||||||
Redwood Trust, Inc. | 8,770 | 145 | ||||||
Resource Capital Corp. | 6,215 | 30 | ||||||
Retail Opportunity Investments Corp. | 8,449 | 124 | ||||||
Rexford Industrial Realty, Inc. | 3,100 | 43 | ||||||
RLJ Lodging Trust | 13,400 | 382 | ||||||
Rouse Properties, Inc. | 4,200 | 68 | ||||||
Ryman Hospitality Properties, Inc. | 4,020 | 190 | ||||||
Sabra Health Care REIT, Inc. | 4,027 | 98 | ||||||
Saul Centers, Inc. | 2,002 | 94 | ||||||
Select Income REIT | 1,400 | 34 | ||||||
Silver Bay Realty Trust Corp. | 4,051 | 66 | ||||||
Sotherly Hotels, Inc. | 443 | 3 | ||||||
Sovran Self Storage, Inc. | 3,675 | 273 | ||||||
STAG Industrial, Inc. | 1,500 | 31 | ||||||
Strategic Hotels & Resorts, Inc. * | 19,667 | 229 | ||||||
Summit Hotel Properties, Inc. | 6,700 | 72 | ||||||
Sun Communities, Inc. | 4,685 | 237 | ||||||
Sunstone Hotel Investors, Inc. | 18,982 | 262 | ||||||
Terreno Realty Corp. | 3,370 | 63 | ||||||
UMH Properties, Inc. | 6,231 | 59 | ||||||
Universal Health Realty Income Trust | 1,167 | 49 | ||||||
Urstadt Biddle Properties, Inc., Class A | 2,860 | 58 | ||||||
Washington Real Estate Investment Trust | 6,900 | 175 | ||||||
Western Asset Mortgage Capital Corp. | 5,303 | 78 |
See Notes to the Financial Statements.
EQUITY FUNDS | 48 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Real Estate Investment Trusts – 8.0% – continued |
| |||||||
Whitestone REIT | 4,064 | $57 | ||||||
Winthrop Realty Trust | 7,289 | 110 | ||||||
ZAIS Financial Corp. | 2,700 | 47 | ||||||
14,562 | ||||||||
Recreational Facilities & Services – 0.7% | ||||||||
Bowl America, Inc., Class A | 460 | 6 | ||||||
Carmike Cinemas, Inc. * | 805 | 25 | ||||||
International Speedway Corp., Class A | 3,955 | 125 | ||||||
Interval Leisure Group, Inc. | 5,529 | 105 | ||||||
Life Time Fitness, Inc. * | 4,472 | 226 | ||||||
Live Nation Entertainment, Inc. * | 12,684 | 305 | ||||||
Marcus (The) Corp. | 1,941 | 31 | ||||||
RCI Hospitality Holdings, Inc. * | 5,233 | 58 | ||||||
Reading International, Inc., Class A * | 923 | 8 | ||||||
Speedway Motorsports, Inc. | 1,815 | 31 | ||||||
Steiner Leisure Ltd. * | 1,198 | 45 | ||||||
Town Sports International Holdings, Inc. | 2,568 | 17 | ||||||
Vail Resorts, Inc. | 3,473 | 301 | ||||||
1,283 | ||||||||
Renewable Energy – 0.6% | ||||||||
Advanced Energy Industries, Inc. * | 7,710 | 145 | ||||||
EnerSys | 4,849 | 284 | ||||||
Green Plains, Inc. | 3,263 | 122 | ||||||
REX American Resources Corp. * | 4,473 | 326 | ||||||
SunPower Corp. * | 5,856 | 199 | ||||||
Ultralife Corp. * | 1,821 | 6 | ||||||
1,082 | ||||||||
Retail – Consumer Staples – 0.8% | ||||||||
ALCO Stores, Inc. * | 600 | 1 | ||||||
Big Lots, Inc. | 6,200 | 267 | ||||||
Casey’s General Stores, Inc. | 5,897 | 423 | ||||||
Fred’s, Inc., Class A | 4,959 | 69 | ||||||
Fresh Market (The), Inc. * | 3,029 | 106 | ||||||
Ingles Markets, Inc., Class A | 3,234 | 77 | ||||||
Pantry (The), Inc. * | 593 | 12 | ||||||
PriceSmart, Inc. | 2,469 | 211 | ||||||
Rite Aid Corp. * | 14,521 | 70 | ||||||
SpartanNash Co. | 5,109 | 99 | ||||||
SUPERVALU, Inc. * | 5,745 | 51 | ||||||
Village Super Market, Inc., Class A | 1,164 | 27 | ||||||
Weis Markets, Inc. | 2,963 | 116 | ||||||
1,529 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Retail – Discretionary – 3.5% | ||||||||
1-800-Flowers.com, Inc., Class A * | 2,808 | $20 | ||||||
America’s Car-Mart, Inc. * | 2,080 | 82 | ||||||
ANN, Inc. * | 4,856 | 200 | ||||||
Asbury Automotive Group, Inc. * | 4,397 | 283 | ||||||
Beacon Roofing Supply, Inc. * | 5,787 | 147 | ||||||
Big 5 Sporting Goods Corp. | 1,509 | 14 | ||||||
Blue Nile, Inc. * | 2,822 | 81 | ||||||
BlueLinx Holdings, Inc. * | 2,812 | 4 | ||||||
Books-A-Million, Inc. * | 1,979 | 3 | ||||||
Brown Shoe Co., Inc. | 6,387 | 173 | ||||||
Buckle (The), Inc. | 3,094 | 140 | ||||||
Build-A-Bear Workshop, Inc. * | 1,494 | 20 | ||||||
Builders FirstSource, Inc. * | 1,671 | 9 | �� | |||||
Cato (The) Corp., Class A | 2,771 | 96 | ||||||
Children’s Place (The), Inc. | 3,094 | 148 | ||||||
Christopher & Banks Corp. * | 2,113 | 21 | ||||||
Conn’s, Inc. * | 2,204 | 67 | ||||||
Destination Maternity Corp. | 1,139 | 18 | ||||||
Ethan Allen Interiors, Inc. | 4,308 | 98 | ||||||
Express, Inc. * | 9,886 | 154 | ||||||
Finish Line (The), Inc., Class A | 5,464 | 137 | ||||||
First Cash Financial Services, Inc. * | 3,353 | 188 | ||||||
Gaiam, Inc., Class A * | 600 | 4 | ||||||
Geeknet, Inc. * | 6,623 | 62 | ||||||
Genesco, Inc. * | 2,704 | 202 | ||||||
Group 1 Automotive, Inc. | 2,490 | 181 | ||||||
Haverty Furniture Cos., Inc. | 3,674 | 80 | ||||||
Hibbett Sports, Inc. * | 3,944 | 168 | ||||||
HSN, Inc. | 5,054 | 310 | ||||||
Kirkland’s, Inc. * | 3,390 | 55 | ||||||
Liquidity Services, Inc. * | 3,521 | 48 | ||||||
Lithia Motors, Inc., Class A | 2,692 | 204 | ||||||
Lumber Liquidators Holdings, Inc. * | 3,277 | 188 | ||||||
Men’s Wearhouse (The), Inc. | 5,629 | 266 | ||||||
Monro Muffler Brake, Inc. | 3,496 | 170 | ||||||
New York & Co., Inc. * | 1,796 | 5 | ||||||
Office Depot, Inc. * | 61,539 | 316 | ||||||
Outerwall, Inc. * | 3,440 | 193 | ||||||
Overstock.com, Inc. * | 732 | 12 | ||||||
Penske Automotive Group, Inc. | 7,545 | 306 | ||||||
Pep Boys-Manny Moe & Jack (The) * | 6,372 | 57 | ||||||
PetMed Express, Inc. | 2,249 | 31 | ||||||
PHH Corp. * | 5,799 | 130 | ||||||
Pier 1 Imports, Inc. | 12,456 | 148 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 49 | EQUITY FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SMALL CAP CORE FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Retail – Discretionary – 3.5% – continued |
| |||||||
Restoration Hardware Holdings, Inc. * | 3,500 | $278 | ||||||
Rush Enterprises, Inc., Class A * | 4,297 | 144 | ||||||
SciQuest, Inc. * | 1,600 | 24 | ||||||
Shoe Carnival, Inc. | 3,209 | 57 | ||||||
Sonic Automotive, Inc., Class A | 6,170 | 151 | ||||||
Stage Stores, Inc. | 5,324 | 91 | ||||||
Stein Mart, Inc. | 2,570 | 30 | ||||||
Systemax, Inc. * | 5,779 | 72 | ||||||
Tile Shop Holdings, Inc. * | 3,400 | 31 | ||||||
Tuesday Morning Corp. * | 1,060 | 21 | ||||||
United Online, Inc. | 2,176 | 24 | ||||||
Vitamin Shoppe, Inc. * | 3,297 | 146 | ||||||
West Marine, Inc. * | 636 | 6 | ||||||
Wet Seal (The), Inc., Class A * | 1,989 | 1 | ||||||
Zumiez, Inc. * | 3,172 | 89 | ||||||
6,404 | ||||||||
Semiconductors – 3.4% | ||||||||
Amkor Technology, Inc. * | 14,600 | 123 | ||||||
Brooks Automation, Inc. | 7,961 | 84 | ||||||
Cabot Microelectronics Corp. * | 2,536 | 105 | ||||||
Cascade Microtech, Inc. * | 359 | 4 | ||||||
Cavium, Inc. * | 5,900 | 293 | ||||||
Cirrus Logic, Inc. * | 9,029 | 188 | ||||||
Coherent, Inc. * | 2,849 | 175 | ||||||
Cohu, Inc. | 4,231 | 51 | ||||||
Diodes, Inc. * | 4,328 | 104 | ||||||
DSP Group, Inc. * | 1,963 | 17 | ||||||
Electro Scientific Industries, Inc. | 4,747 | 32 | ||||||
Entegris, Inc. * | 18,043 | 208 | ||||||
Exar Corp. * | 9,194 | 82 | ||||||
Fairchild Semiconductor International, Inc. * | 10,827 | 167 | ||||||
II-VI, Inc. * | 5,071 | 60 | ||||||
Integrated Device Technology, Inc. * | 13,618 | 217 | ||||||
International Rectifier Corp. * | 6,552 | 257 | ||||||
Intersil Corp., Class A | 18,808 | 267 | ||||||
IXYS Corp. | 7,959 | 84 | ||||||
Kulicke & Soffa Industries, Inc. * | 9,474 | 135 | ||||||
Lattice Semiconductor Corp. * | 12,851 | 96 | ||||||
Magnachip Semiconductor Corp. * | 3,600 | 42 | ||||||
Micrel, Inc. | 8,278 | 100 | ||||||
Microsemi Corp. * | 9,729 | 247 | ||||||
MKS Instruments, Inc. | 6,239 | 208 | ||||||
Monolithic Power Systems, Inc. | 3,678 | 162 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Semiconductors – 3.4% – continued | ||||||||
Nanometrics, Inc. * | 2,400 | $36 | ||||||
Newport Corp. * | 5,617 | 100 | ||||||
NVE Corp. * | 1,230 | 79 | ||||||
OmniVision Technologies, Inc. * | 5,300 | 140 | ||||||
Park Electrochemical Corp. | 3,787 | 89 | ||||||
Pericom Semiconductor Corp. * | 1,660 | 16 | ||||||
Photronics, Inc. * | 3,655 | 30 | ||||||
PMC-Sierra, Inc. * | 23,864 | 178 | ||||||
Power Integrations, Inc. | 3,548 | 191 | ||||||
Rambus, Inc. * | 11,072 | 138 | ||||||
RF Micro Devices, Inc. * | 27,113 | 313 | ||||||
Rudolph Technologies, Inc. * | 1,944 | 18 | ||||||
Semtech Corp. * | 6,076 | 165 | ||||||
Silicon Image, Inc. * | 2,244 | 11 | ||||||
Silicon Laboratories, Inc. * | 4,594 | 187 | ||||||
Spansion, Inc., Class A * | 3,395 | 77 | ||||||
Tessera Technologies, Inc. | 5,632 | 150 | ||||||
TriQuint Semiconductor, Inc. * | 11,100 | 212 | ||||||
Ultratech, Inc. * | 3,524 | 80 | ||||||
Universal Display Corp. * | 4,394 | 143 | ||||||
Vishay Intertechnology, Inc. | 14,406 | 206 | ||||||
Xcerra Corp. * | 12,391 | 121 | ||||||
6,188 | ||||||||
Software – 4.3% | ||||||||
8x8, Inc. * | 12,015 | 80 | ||||||
ACI Worldwide, Inc. * | 13,113 | 246 | ||||||
Actua Corp. * | 7,376 | 118 | ||||||
Actuate Corp. * | 1,051 | 4 | ||||||
Acxiom Corp. * | 6,251 | 103 | ||||||
Advent Software, Inc. | 5,051 | 159 | ||||||
Agilysys, Inc. * | 7,402 | 87 | ||||||
American Software, Inc., Class A | 12,136 | 107 | ||||||
Aspen Technology, Inc. * | 9,271 | 350 | ||||||
Audience, Inc. * | 4,300 | 32 | ||||||
Aware, Inc. | 538 | 2 | ||||||
Blackbaud, Inc. | 4,408 | 173 | ||||||
BroadSoft, Inc. * | 2,978 | 63 | ||||||
Callidus Software, Inc. * | 1,538 | 18 | ||||||
CommVault Systems, Inc. * | 4,698 | 237 | ||||||
Computer Programs & Systems, Inc. | 3,083 | 177 | ||||||
Cornerstone OnDemand, Inc. * | 3,200 | 110 | ||||||
Datawatch Corp. * | 4,500 | 46 | ||||||
Dealertrack Technologies, Inc. * | 5,786 | 251 | ||||||
Digi International, Inc. * | 4,295 | 32 |
See Notes to the Financial Statements.
EQUITY FUNDS | 50 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Software – 4.3% – continued | ||||||||
Digital River, Inc. * | 7,548 | $110 | ||||||
eGain Corp. * | 8,800 | 53 | ||||||
Envestnet, Inc. * | 1,900 | 85 | ||||||
Epiq Systems, Inc. | 1,682 | 30 | ||||||
Exa Corp. * | 1,035 | 12 | ||||||
Guidance Software, Inc. * | 100 | 1 | ||||||
Guidewire Software, Inc. * | 4,800 | 213 | ||||||
inContact, Inc. * | 6,358 | 55 | ||||||
InnerWorkings, Inc. * | 928 | 7 | ||||||
Interactive Intelligence Group, Inc. * | 2,482 | 104 | ||||||
iPass, Inc. * | 1,489 | 2 | ||||||
Lionbridge Technologies, Inc. * | 2,108 | 9 | ||||||
LivePerson, Inc. * | 6,028 | 76 | ||||||
LogMeIn, Inc. * | 3,835 | 177 | ||||||
Manhattan Associates, Inc. * | 12,980 | 434 | ||||||
MedAssets, Inc. * | 8,908 | 185 | ||||||
Mentor Graphics Corp. | 9,412 | 193 | ||||||
Merge Healthcare, Inc. * | 1,663 | 4 | ||||||
MicroStrategy, Inc., Class A * | 1,002 | 131 | ||||||
Monotype Imaging Holdings, Inc. | 3,800 | 108 | ||||||
Omnicell, Inc. * | 4,663 | 127 | ||||||
PDF Solutions, Inc. * | 1,400 | 18 | ||||||
Pegasystems, Inc. | 5,556 | 106 | ||||||
Progress Software Corp. * | 7,390 | 177 | ||||||
PROS Holdings, Inc. * | 3,914 | 99 | ||||||
PTC, Inc. * | 11,939 | 441 | ||||||
QAD, Inc., Class B | 642 | 10 | ||||||
Qlik Technologies, Inc. * | 9,113 | 246 | ||||||
Quality Systems, Inc. | 4,133 | 57 | ||||||
RealPage, Inc. * | 7,251 | 112 | ||||||
Rosetta Stone, Inc. * | 4,700 | 38 | ||||||
Saba Software, Inc. * | 1,250 | 17 | ||||||
Seachange International, Inc. * | 1,080 | 7 | ||||||
SPS Commerce, Inc. * | 1,100 | 58 | ||||||
SS&C Technologies Holdings, Inc. * | 5,804 | 255 | ||||||
Support.com, Inc. * | 2,249 | 5 | ||||||
Synchronoss Technologies, Inc. * | 4,374 | 200 | ||||||
Take-Two Interactive Software, Inc. * | 10,345 | 239 | ||||||
Tyler Technologies, Inc. * | 4,681 | 414 | ||||||
Ultimate Software Group (The), Inc. * | 2,943 | 416 | ||||||
Unwired Planet, Inc. * | 2,425 | 4 | ||||||
VASCO Data Security International, Inc. * | 2,430 | 46 | ||||||
Verint Systems, Inc. * | 5,223 | 290 | ||||||
VirnetX Holding Corp. * | 2,104 | 13 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Software – 4.3% – continued | ||||||||
Web.com Group, Inc. * | 5,202 | $104 | ||||||
7,883 | ||||||||
Specialty Finance – 2.5% | ||||||||
Aircastle Ltd. | 3,704 | 61 | ||||||
Arlington Asset Investment Corp., Class A | 454 | 12 | ||||||
CAI International, Inc. * | 2,251 | 44 | ||||||
Cardtronics, Inc. * | 4,251 | 150 | ||||||
Cash America International, Inc. | 3,109 | 136 | ||||||
Cass Information Systems, Inc. | 2,083 | 86 | ||||||
CoreLogic, Inc. * | 9,914 | 268 | ||||||
Credit Acceptance Corp. * | 2,642 | 333 | ||||||
Ellie Mae, Inc. * | 3,900 | 127 | ||||||
Encore Capital Group, Inc. * | 3,788 | 168 | ||||||
Euronet Worldwide, Inc. * | 6,239 | 298 | ||||||
Federal Agricultural Mortgage Corp., Class C | 100 | 3 | ||||||
First American Financial Corp. | 9,033 | 245 | ||||||
Global Cash Access Holdings, Inc. * | 4,013 | 27 | ||||||
Heartland Payment Systems, Inc. | 4,197 | 200 | ||||||
HFF, Inc., Class A | 3,000 | 87 | ||||||
Investors Title Co. | 1,622 | 119 | ||||||
McGrath RentCorp | 3,559 | 122 | ||||||
Meta Financial Group, Inc. | 1,350 | 48 | ||||||
MGIC Investment Corp. * | 17,480 | 136 | ||||||
MicroFinancial, Inc. | 1,682 | 14 | ||||||
MoneyGram International, Inc. * | 234 | 3 | ||||||
Nelnet, Inc., Class A | 5,023 | 216 | ||||||
NewStar Financial, Inc. * | 1,344 | 15 | ||||||
Orchid Island Capital, Inc. | 3,600 | 48 | ||||||
Portfolio Recovery Associates, Inc. * | 5,718 | 299 | ||||||
Stewart Information Services Corp. | 4,172 | 122 | ||||||
Textainer Group Holdings Ltd. | 2,347 | 73 | ||||||
Tree.com, Inc. * | 1,500 | 54 | ||||||
WageWorks, Inc. * | 2,800 | 127 | ||||||
Walter Investment Management Corp. * | 5,108 | 112 | ||||||
WEX, Inc. * | 5,462 | 603 | ||||||
Willis Lease Finance Corp. * | 608 | 12 | ||||||
World Acceptance Corp. * | 2,639 | 178 | ||||||
4,546 | ||||||||
Technology Services – 2.5% | ||||||||
Black Box Corp. | 3,521 | 82 | ||||||
Bottomline Technologies de, Inc. * | 4,314 | 119 | ||||||
CACI International, Inc., Class A * | 3,189 | 227 | ||||||
Ciber, Inc. * | 5,213 | 18 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 51 | EQUITY FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SMALL CAP CORE FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Technology Services – 2.5% – continued |
| |||||||
comScore, Inc. * | 2,489 | $91 | ||||||
Comverse, Inc. * | 1,884 | 42 | ||||||
Convergys Corp. | 12,453 | 222 | ||||||
CoStar Group, Inc. * | 3,318 | 516 | ||||||
CSG Systems International, Inc. | 4,444 | 117 | ||||||
Cubic Corp. | 3,353 | 157 | ||||||
EPAM Systems, Inc. * | 3,000 | 131 | ||||||
ExlService Holdings, Inc. * | 3,447 | 84 | ||||||
Fair Isaac Corp. | 4,712 | 260 | ||||||
Forrester Research, Inc. | 3,670 | 135 | ||||||
ICF International, Inc. * | 1,186 | 37 | ||||||
iGATE Corp. * | 4,859 | 178 | ||||||
MarketAxess Holdings, Inc. | 3,976 | 246 | ||||||
Mattersight Corp. * | 1,358 | 7 | ||||||
MAXIMUS, Inc. | 11,998 | 481 | ||||||
Medidata Solutions, Inc. * | 5,326 | 236 | ||||||
NIC, Inc. | 6,721 | 116 | ||||||
Perficient, Inc. * | 2,436 | 37 | ||||||
Rentrak Corp. * | 2,207 | 135 | ||||||
Sapient Corp. * | 14,392 | 201 | ||||||
StarTek, Inc. * | 780 | 6 | ||||||
Sykes Enterprises, Inc. * | 8,564 | 171 | ||||||
Syntel, Inc. * | 3,533 | 311 | ||||||
TeleTech Holdings, Inc. * | 5,926 | 146 | ||||||
Tessco Technologies, Inc. | 1,174 | 34 | ||||||
Unisys Corp. * | 3,715 | 87 | ||||||
Virtusa Corp. * | 740 | 26 | ||||||
4,656 | ||||||||
Telecom – 0.9% | ||||||||
Atlantic Tele-Network, Inc. | 1,101 | 59 | ||||||
Cincinnati Bell, Inc. * | 24,663 | 83 | ||||||
Cogent Communications Holdings, Inc. | 6,212 | 209 | ||||||
Consolidated Communications Holdings, Inc. | 4,275 | 107 | ||||||
DigitalGlobe, Inc. * | 7,072 | 202 | ||||||
Enventis Corp. | 4,391 | 80 | ||||||
General Communication, Inc., Class A * | 3,985 | 44 | ||||||
IDT Corp., Class B | 1,551 | 25 | ||||||
Internap Network Services Corp. * | 3,114 | 22 | ||||||
j2 Global, Inc. | 6,402 | 316 | ||||||
Lumos Networks Corp. | 987 | 16 | ||||||
NTELOS Holdings Corp. | 1,999 | 21 | ||||||
Pendrell Corp. * | 33,151 | 44 | ||||||
Premiere Global Services, Inc. * | 11,819 | 141 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Telecom – 0.9% – continued | ||||||||
RigNet, Inc. * | 2,972 | $120 | ||||||
Shenandoah Telecommunications Co. | 1,504 | 37 | ||||||
Spok Holdings, Inc. | 3,117 | 41 | ||||||
Straight Path Communications, Inc., Class B * | 725 | 12 | ||||||
Zix Corp. * | 2,688 | 9 | ||||||
1,588 | ||||||||
Transportation & Logistics – 1.3% | ||||||||
Air Transport Services Group, Inc. * | 2,810 | 21 | ||||||
Atlas Air Worldwide Holdings, Inc. * | 2,929 | 97 | ||||||
Celadon Group, Inc. | 597 | 12 | ||||||
Covenant Transportation Group, Inc., Class A * | 1,478 | 28 | ||||||
Forward Air Corp. | 3,933 | 176 | ||||||
Golar LNG Ltd. | 3,826 | 254 | ||||||
Heartland Express, Inc. | 7,821 | 187 | ||||||
Hornbeck Offshore Services, Inc. * | 3,526 | 116 | ||||||
International Shipholding Corp. | 319 | 6 | ||||||
Knight Transportation, Inc. | 7,060 | 193 | ||||||
Marten Transport Ltd. | 5,576 | 99 | ||||||
Matson, Inc. | 4,730 | 118 | ||||||
Mobile Mini, Inc. | 4,258 | 149 | ||||||
P.A.M. Transportation Services, Inc. * | 1,000 | 36 | ||||||
Patriot Transportation Holding, Inc. * | 1,279 | 43 | ||||||
Providence and Worcester Railroad Co. | 7,307 | 128 | ||||||
Saia, Inc. * | 2,847 | 141 | ||||||
Ship Finance International Ltd. | 5,632 | 95 | ||||||
Stamps.com, Inc. * | 4,128 | 131 | ||||||
Universal Truckload Services, Inc. | 3,613 | 88 | ||||||
UTi Worldwide, Inc. * | 11,100 | 118 | ||||||
Werner Enterprises, Inc. | 5,364 | 135 | ||||||
XPO Logistics, Inc. * | 196 | 7 | ||||||
2,378 | ||||||||
Transportation Equipment – 0.3% | ||||||||
American Railcar Industries, Inc. | 1,163 | 86 | ||||||
FreightCar America, Inc. | 3,386 | 113 | ||||||
Greenbrier (The) Cos., Inc. | 3,284 | 241 | ||||||
Spartan Motors, Inc. | 1,067 | 5 | ||||||
Wabash National Corp. * | 6,518 | 87 | ||||||
532 | ||||||||
Utilities – 3.0% | ||||||||
ALLETE, Inc. | 4,201 | 186 | ||||||
American States Water Co. | 4,800 | 146 | ||||||
Artesian Resources Corp., Class A | 2,434 | 49 |
See Notes to the Financial Statements.
EQUITY FUNDS | 52 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 95.3% – continued | ||||||||
Utilities – 3.0% – continued | ||||||||
Avista Corp. | 7,671 | $234 | ||||||
Black Hills Corp. | 4,845 | 232 | ||||||
California Water Service Group | 4,748 | 107 | ||||||
Chesapeake Utilities Corp. | 3,834 | 160 | ||||||
Cleco Corp. | 6,927 | 334 | ||||||
Connecticut Water Service, Inc. | 2,500 | 81 | ||||||
Consolidated Water Co. Ltd. | 3,764 | 44 | ||||||
Delta Natural Gas Co., Inc. | 184 | 4 | ||||||
Dynegy, Inc. * | 11,200 | 323 | ||||||
El Paso Electric Co. | 5,461 | 200 | ||||||
Empire District Electric (The) Co. | 4,445 | 107 | ||||||
IDACORP, Inc. | 6,390 | 343 | ||||||
Laclede Group (The), Inc. | 2,487 | 115 | ||||||
MGE Energy, Inc. | 3,490 | 130 | ||||||
Middlesex Water Co. | 3,786 | 74 | ||||||
New Jersey Resources Corp. | 4,711 | 238 | ||||||
Northwest Natural Gas Co. | 3,623 | 153 | ||||||
NorthWestern Corp. | 4,003 | 182 | ||||||
Ormat Technologies, Inc. | 1,191 | 31 | ||||||
Otter Tail Corp. | 3,895 | 104 | ||||||
Piedmont Natural Gas Co., Inc. | 7,269 | 244 | ||||||
PNM Resources, Inc. | 11,190 | 278 | ||||||
Portland General Electric Co. | 9,315 | 299 | ||||||
RGC Resources, Inc. | 543 | 11 | ||||||
SJW Corp. | 2,498 | 67 | ||||||
South Jersey Industries, Inc. | 3,377 | 180 | ||||||
Southwest Gas Corp. | 5,670 | 275 | ||||||
UIL Holdings Corp. | 5,966 | 211 | ||||||
Unitil Corp. | 2,948 | 92 | ||||||
WGL Holdings, Inc. | 6,014 | 253 | ||||||
York Water Co. | 3,016 | 60 | ||||||
5,547 | ||||||||
Waste & Environment Services & Equipment – 0.5% |
| |||||||
Cantel Medical Corp. | 6,956 | 239 | ||||||
Ceco Environmental Corp. | 153 | 2 | ||||||
CLARCOR, Inc. | 5,649 | 356 | ||||||
Heritage-Crystal Clean, Inc. * | 465 | 7 | ||||||
Sharps Compliance Corp. * | 1,737 | 8 | ||||||
Tetra Tech, Inc. | 6,487 | 162 | ||||||
US Ecology, Inc. | 3,713 | 174 | ||||||
948 | ||||||||
Total Common Stocks | ||||||||
(Cost $120,496) | 174,224 | |||||||
NUMBER OF SHARES | VALUE (000s) | |||||||
MASTER LIMITED PARTNERSHIPS – 0.2% | ||||||||
Media – 0.1% | ||||||||
LIN Media LLC, Class A * | 2,858 | $63 | ||||||
Oil, Gas & Coal – 0.1% | ||||||||
Niska Gas Storage Partners LLC, Class U | 6,612 | 83 | ||||||
Vanguard Natural Resources LLC | 5,656 | 155 | ||||||
238 | ||||||||
Total Master Limited Partnerships | ||||||||
(Cost $280) | 301 | |||||||
PREFERRED STOCKS – 0.0% | ||||||||
Utilities – 0.0% | ||||||||
Genie Energy Ltd. * | 1,025 | 7 | ||||||
Total Preferred Stocks | ||||||||
(Cost $10) | 7 | |||||||
RIGHTS – 0.0% | ||||||||
Biotechnology & Pharmaceuticals – 0.0% | ||||||||
Cubist Pharmaceuticals, Inc. (Contingent Value Rights) * | 6,942 | 1 | ||||||
Forest Laboratories, Inc. (Contingent Value Rights) * | 3,326 | – | ||||||
1 | ||||||||
Medical Equipment & Devices – 0.0% | ||||||||
American Medical Alert Corp. (1)* | 13,109 | – | ||||||
Wright Medical Group, Inc. (Contingent Value Rights) * | 5,624 | 13 | ||||||
13 | ||||||||
Real Estate – 0.0% | ||||||||
Gyrodyne Special Distribution LLC * | 744 | 15 | ||||||
Total Rights | ||||||||
(Cost $51) | 29 | |||||||
OTHER – 0.0% (2) | ||||||||
Escrow Adolor Corp. * | 1,241 | – | ||||||
Total Other | ||||||||
(Cost $–) | – | |||||||
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 53 | EQUITY FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SMALL CAP CORE FUND continued
NUMBER OF WARRANTS | VALUE (000s) | |||||||
WARRANTS – 0.0% | ||||||||
Tejon Ranch Co., Exp. 8/31/16, | 348 | $1 | ||||||
Total Warrants | ||||||||
(Cost $2) | 1 | |||||||
NUMBER OF SHARES | VALUE (000s) | |||||||
INVESTMENT COMPANIES – 4.2% | ||||||||
Northern Institutional Funds – Diversified Assets Portfolio, 0.01% (3)(4) | 7,594,423 | $7,594 | ||||||
Total Investment Companies | ||||||||
(Cost $7,594) | 7,594 | |||||||
PRINCIPAL (000s) | VALUE (000s) | |||||||
SHORT-TERM INVESTMENTS – 0.2% | ||||||||
U.S. Treasury Bill, | $425 | $425 | ||||||
Total Short-Term Investments | ||||||||
(Cost $425) | 425 | |||||||
Total Investments – 99.9% | ||||||||
(Cost $128,858) | 182,581 | |||||||
Other Assets less Liabilities – 0.1% | 139 | |||||||
NET ASSETS – 100.0% | $182,720 |
(1) | Level 3 asset that is worthless, bankrupt or has been delisted. |
(2) | Security listed as “escrow” is considered to be worthless. |
(3) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
(4) | At March 31, 2014, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $3,812,000 with net purchases of approximately $3,782,000 during the six months ended September 30, 2014. |
(5) | Security pledged as collateral to cover margin requirements for open futures contracts. |
* | Non-Income Producing Security |
Percentages shown are based on Net Assets.
At September 30, 2014, the Fund had open futures contracts as follows:
TYPE | NUMBER OF CONTRACTS | NOTIONAL AMOUNT (000s) | CONTRACT POSITION | CONTRACT EXP. | UNREALIZED GAINS (LOSSES) | |||||||||||||||
Russell 2000 Mini Index | 71 | $7,786 | Long | 12/14 | $(341) |
At September 30, 2014, the industry sectors for the Fund were:
INDUSTRY SECTOR | % OF LONG-TERM INVESTMENTS | |||
Consumer Discretionary | 13.2% | |||
Consumer Staples | 4.0 | |||
Energy | 5.4 | |||
Financials | 23.9 | |||
Health Care | 13.5 | |||
Industrials | 13.8 | |||
Information Technology | 17.7 | |||
Materials | 4.7 | |||
Telecommunication Services | 0.6 | |||
Utilities | 3.2 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuations of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Common Stocks | ||||||||||||||||
Banking | $15,149 | $13 | $– | $15,162 | ||||||||||||
Consumer Products | 4,909 | 3 | – | 4,912 | ||||||||||||
Medical Equipment & Devices | 7,402 | 39 | – | 7,441 | ||||||||||||
Recreation Facilities & Services | 1,277 | 6 | – | 1,283 | ||||||||||||
All Other Industries | 145,426 | (1) | – | – | 145,426 | |||||||||||
Master Limited Partnerships | 301 | (1) | – | – | 301 | |||||||||||
Preferred Stocks | – | 7 | – | 7 | ||||||||||||
Rights | ||||||||||||||||
Real Estate | – | – | 15 | 15 | ||||||||||||
All Other | 14 | (1) | – | – | 14 | |||||||||||
Warrants | – | 1 | – | 1 | ||||||||||||
Investment Companies | 7,594 | – | – | 7,594 | ||||||||||||
Short-Term Investments | – | 425 | – | 425 | ||||||||||||
Total Investments | $182,072 | $494 | $15 | $182,581 | ||||||||||||
OTHER FINANCIAL INSTRUMENTS |
| |||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (341) | $– | $– | $ | (341) |
(1) | Classifications as defined in the Schedule of Investments. |
See Notes to the Financial Statements.
EQUITY FUNDS | 54 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, the Fund had transfers from Level 1 to 2 as disclosed below:
Transfers from Level 1 to Level 2 |
Industry | Value (000s) | Reason | ||||
Common Stocks | ||||||
Banking | $7 | Bid price used | ||||
Consumer Products | 3 | Bid price used | ||||
Medical Equipment & Devices | 39 | Bid price used | ||||
Recreation Facilities & Services | 6 | Bid price used | ||||
Preferred Stocks | ||||||
Utilities | 7 | Bid price used | ||||
Warrants | ||||||
Real Estate | 1 | Bid price used | ||||
Total | $63 |
At September 30, 2014, the Fund had transfers from Level 2 to Level 1 as disclosed below:
Transfers from Level 2 to Level 1 |
Industry | Value (000s) | Reason | ||||
Common Stocks | ||||||
Aerospace & Defense | $24 | Valuations at last trade price | ||||
Asset Management | 2 | Valuations at official close price | ||||
Banking | 68 | Valuations at official close price | ||||
Home & Office Products | 9 | Valuations at last trade price | ||||
Insurance | 6 | Valuations at last trade price | ||||
Medical Equipment & Devices | 3 | Valuations at last trade price | ||||
Oil, Gas & Coal | 56 | Valuations at official close price | ||||
Retail - Consumer Staples | 1 | Valuations at official close price | ||||
Total | $169 |
The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:
BALANCE AS OF 3/31/14 (000s) | REALIZED (000s) | CHANGE IN UNREALIZED (000s) | PURCHASES (000s) | SALES (000s) | TRANSFERS INTO LEVEL 3 (000s) | TRANSFERS OUT OF LEVEL 3 (000s) | BALANCE AS OF 9/30/14 (000s) | CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) FROM INVESTMENTS STILL HELD (000s) | ||||||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||||||||||||
Healthcare - Services | $ | — | $ | 13 | $ | 3 | $ | — | $ | (16 | ) | $ | — | $ | — | $ | — | $ | 3 | |||||||||||||||||
Rights | ||||||||||||||||||||||||||||||||||||
Real Estate Investment Trust | — | — | 15 | — | — | — | — | 15 | 15 | |||||||||||||||||||||||||||
Total | $ | — | $ | 13 | $ | 18 | $ | — | $ | (16 | ) | $ | — | $ | — | $ | 15 | $ | 18 |
The Fund valued the securities included in the balance as of 9/30/14 above using an evaluated price from a third party provider.
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 55 | EQUITY FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SMALL CAP VALUE FUND
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.0% | ||||||||
Aerospace & Defense – 2.4% | ||||||||
AAR Corp. | 357,248 | $8,628 | ||||||
Alliant Techsystems, Inc. | 24,376 | 3,111 | ||||||
Ducommun, Inc. * | 18,619 | 510 | ||||||
Esterline Technologies Corp. * | 170,102 | 18,927 | ||||||
Moog, Inc., Class A * | 304,677 | 20,840 | ||||||
Orbital Sciences Corp. * | 93,366 | 2,596 | ||||||
Oshkosh Corp. | 66,645 | 2,942 | ||||||
Woodward, Inc. | 41,664 | 1,984 | ||||||
59,538 | ||||||||
Apparel & Textile Products – 1.3% | ||||||||
Columbia Sportswear Co. | 363,046 | 12,990 | ||||||
Iconix Brand Group, Inc. * | 384,281 | 14,195 | ||||||
Movado Group, Inc. | 20,429 | 675 | ||||||
Perry Ellis International, Inc. * | 80,205 | 1,632 | ||||||
Skechers U.S.A., Inc., Class A * | 40,621 | 2,166 | ||||||
Unifi, Inc. * | 71,705 | 1,857 | ||||||
33,515 | ||||||||
Asset Management – 0.3% | ||||||||
Calamos Asset Management, Inc., Class A | 118,023 | 1,330 | ||||||
Janus Capital Group, Inc. | 336,816 | 4,897 | ||||||
Oppenheimer Holdings, Inc., Class A | 52,788 | 1,069 | ||||||
7,296 | ||||||||
Automotive – 1.3% | ||||||||
Actuant Corp., Class A | 17,887 | 546 | ||||||
Cooper Tire & Rubber Co. | 225,383 | 6,469 | ||||||
Cooper-Standard Holding, Inc. * | 15,256 | 952 | ||||||
Dana Holding Corp. | 681,293 | 13,060 | ||||||
Miller Industries, Inc. | 106,234 | 1,795 | ||||||
Remy International, Inc. | 27,310 | 561 | ||||||
Standard Motor Products, Inc. | 130,979 | 4,510 | ||||||
Superior Industries International, Inc. | 203,560 | 3,568 | ||||||
31,461 | ||||||||
Banking – 16.5% | ||||||||
Arrow Financial Corp. | 9,413 | 236 | ||||||
Astoria Financial Corp. | 382,174 | 4,735 | ||||||
BancFirst Corp. | 47,852 | 2,994 | ||||||
BancorpSouth, Inc. | 387,127 | 7,797 | ||||||
Bank of the Ozarks, Inc. | 134,704 | 4,246 | ||||||
BankFinancial Corp. | 81,030 | 841 | ||||||
Banner Corp. | 14,548 | 560 | ||||||
BBCN Bancorp, Inc. | 371,208 | 5,416 | ||||||
Berkshire Hills Bancorp, Inc. | 87,106 | 2,046 | ||||||
Boston Private Financial Holdings, Inc. | 59,249 | 734 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.0% – continued | ||||||||
Banking – 16.5% – continued | ||||||||
Brookline Bancorp, Inc. | 59,557 | $509 | ||||||
Bryn Mawr Bank Corp. | 10,161 | 288 | ||||||
Capital City Bank Group, Inc. | 48,051 | 651 | ||||||
Cardinal Financial Corp. | 175,145 | 2,990 | ||||||
Cathay General Bancorp | 373,372 | 9,271 | ||||||
Central Pacific Financial Corp. | 31,476 | 564 | ||||||
Chemical Financial Corp. | 291,085 | 7,827 | ||||||
City Holding Co. | 114,532 | 4,825 | ||||||
Columbia Banking System, Inc. | 135,198 | 3,354 | ||||||
Community Bank System, Inc. | 336,443 | 11,301 | ||||||
Community Trust Bancorp, Inc. | 154,706 | 5,203 | ||||||
CVB Financial Corp. | 442,781 | 6,354 | ||||||
Dime Community Bancshares, Inc. | 393,150 | 5,661 | ||||||
Eagle Bancorp, Inc. * | 19,307 | 614 | ||||||
Financial Institutions, Inc. | 36,174 | 813 | ||||||
First Commonwealth Financial Corp. | 73,379 | 616 | ||||||
First Financial Bancorp | 374,460 | 5,928 | ||||||
First Financial Corp. | 104,019 | 3,219 | ||||||
First Interstate Bancsystem, Inc. | 13,837 | 368 | ||||||
First Merchants Corp. | 184,688 | 3,733 | ||||||
First Midwest Bancorp, Inc. | 416,175 | 6,696 | ||||||
First of Long Island (The) Corp. | 6,825 | 235 | ||||||
FirstMerit Corp. | 487,523 | 8,580 | ||||||
Flushing Financial Corp. | 375,688 | 6,864 | ||||||
FNB Corp. | 986,792 | 11,832 | ||||||
Fulton Financial Corp. | 236,181 | 2,617 | ||||||
Glacier Bancorp, Inc. | 104,986 | 2,715 | ||||||
Great Southern Bancorp, Inc. | 10,239 | 311 | ||||||
Hancock Holding Co. | 129,445 | 4,149 | ||||||
Hanmi Financial Corp. | 82,282 | 1,659 | ||||||
Heartland Financial USA, Inc. | 112,510 | 2,687 | ||||||
Heritage Financial Corp. | 49,851 | 790 | ||||||
Home BancShares, Inc. | 244,983 | 7,205 | ||||||
Iberiabank Corp. | 93,566 | 5,849 | ||||||
Independent Bank Corp. | 159,906 | 5,712 | ||||||
International Bancshares Corp. | 524,768 | 12,943 | ||||||
Lakeland Bancorp, Inc. | 291,548 | 2,845 | ||||||
Lakeland Financial Corp. | 93,721 | 3,514 | ||||||
MainSource Financial Group, Inc. | 50,101 | 864 | ||||||
MB Financial, Inc. | 55,329 | 1,531 | ||||||
National Bankshares, Inc. | 30,196 | 838 | ||||||
National Penn Bancshares, Inc. | 497,542 | 4,831 | ||||||
NBT Bancorp, Inc. | 201,244 | 4,532 | ||||||
Northwest Bancshares, Inc. | 415,848 | 5,032 |
See Notes to the Financial Statements.
EQUITY FUNDS | 56 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.0% – continued | ||||||||
Banking – 16.5% – continued | ||||||||
OceanFirst Financial Corp. | 107,779 | $1,715 | ||||||
Oritani Financial Corp. | 38,784 | 546 | ||||||
Park National Corp. | 62,119 | 4,685 | ||||||
Peoples Bancorp, Inc. | 31,616 | 751 | ||||||
Pinnacle Financial Partners, Inc. | 183,078 | 6,609 | ||||||
PrivateBancorp, Inc. | 359,576 | 10,755 | ||||||
Prosperity Bancshares, Inc. | 286,011 | 16,351 | ||||||
Provident Financial Services, Inc. | 612,120 | 10,020 | ||||||
Renasant Corp. | 244,208 | 6,606 | ||||||
S&T Bancorp, Inc. | 202,617 | 4,753 | ||||||
Sandy Spring Bancorp, Inc. | 110,000 | 2,518 | ||||||
Sierra Bancorp | 137,393 | 2,303 | ||||||
Simmons First National Corp., Class A | 12,384 | 477 | ||||||
South State Corp. | 125,978 | 7,045 | ||||||
Sterling Bancorp | 430,030 | 5,500 | ||||||
Susquehanna Bancshares, Inc. | 1,142,982 | 11,430 | ||||||
Texas Capital Bancshares, Inc. * | 122,099 | 7,043 | ||||||
Trico Bancshares | 145,107 | 3,282 | ||||||
Trustmark Corp. | 411,193 | 9,472 | ||||||
UMB Financial Corp. | 228,694 | 12,475 | ||||||
Umpqua Holdings Corp. | 473,628 | 7,801 | ||||||
Union Bankshares Corp. | 338,165 | 7,812 | ||||||
United Bankshares, Inc. | 322,570 | 9,977 | ||||||
United Financial Bancorp, Inc. | 273,977 | 3,477 | ||||||
Univest Corp. of Pennsylvania | 12,512 | 235 | ||||||
ViewPoint Financial Group, Inc. | 29,969 | 717 | ||||||
Washington Federal, Inc. | 478,623 | 9,745 | ||||||
Washington Trust Bancorp, Inc. | 149,354 | 4,927 | ||||||
Webster Financial Corp. | 418,679 | 12,200 | ||||||
WesBanco, Inc. | 134,730 | 4,121 | ||||||
Wilshire Bancorp, Inc. | 320,446 | 2,958 | ||||||
Wintrust Financial Corp. | 166,364 | 7,431 | ||||||
WSFS Financial Corp. | 92,804 | 6,646 | ||||||
410,908 | ||||||||
Biotechnology & Pharmaceuticals – 0.6% | ||||||||
Aceto Corp. | 379,632 | 7,334 | ||||||
Cambrex Corp. * | 25,616 | 478 | ||||||
Impax Laboratories, Inc. * | 58,524 | 1,388 | ||||||
Nutraceutical International Corp. * | 111,943 | 2,341 | ||||||
PDL BioPharma, Inc. | 394,073 | 2,944 | ||||||
14,485 | ||||||||
Chemicals – 3.2% | ||||||||
A. Schulman, Inc. | 183,500 | 6,635 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.0% – continued | ||||||||
Chemicals – 3.2% – continued | ||||||||
Axiall Corp. | 8,607 | $308 | ||||||
Cabot Corp. | 155,273 | 7,883 | ||||||
Cytec Industries, Inc. | 122,914 | 5,813 | ||||||
H.B. Fuller Co. | 181,278 | 7,197 | ||||||
Innophos Holdings, Inc. | 74,845 | 4,123 | ||||||
Materion Corp. | 246,045 | 7,546 | ||||||
Minerals Technologies, Inc. | 193,443 | 11,938 | ||||||
Olin Corp. | 387,407 | 9,782 | ||||||
OM Group, Inc. | 284,802 | 7,391 | ||||||
Sensient Technologies Corp. | 205,750 | 10,771 | ||||||
79,387 | ||||||||
Commercial Services – 2.2% | ||||||||
ABM Industries, Inc. | 323,406 | 8,308 | ||||||
Barrett Business Services, Inc. | 39,068 | 1,543 | ||||||
Brink’s (The) Co. | 30,191 | 726 | ||||||
CDI Corp. | 198,753 | 2,886 | ||||||
Corporate Executive Board (The) Co. | 21,532 | 1,294 | ||||||
Ennis, Inc. | 320,494 | 4,221 | ||||||
G&K Services, Inc., Class A | 176,889 | 9,796 | ||||||
Kforce, Inc. | 128,357 | 2,512 | ||||||
Korn/Ferry International * | 288,772 | 7,190 | ||||||
Multi-Color Corp. | 128,109 | 5,826 | ||||||
Navigant Consulting, Inc. * | 43,069 | 599 | ||||||
Resources Connection, Inc. | 34,893 | 486 | ||||||
RR Donnelley & Sons Co. | 12,686 | 209 | ||||||
UniFirst Corp. | 22,089 | 2,134 | ||||||
Viad Corp. | 270,526 | 5,586 | ||||||
Vistaprint N.V. * | 40,047 | 2,194 | ||||||
55,510 | ||||||||
Construction Materials – 0.6% | ||||||||
Apogee Enterprises, Inc. | 255,267 | 10,159 | ||||||
Louisiana-Pacific Corp. * | 274,016 | 3,724 | ||||||
13,883 | ||||||||
Consumer Products – 1.9% | ||||||||
Cal-Maine Foods, Inc. | 20,631 | 1,843 | ||||||
Darling Ingredients, Inc. * | 378,894 | 6,941 | ||||||
Fresh Del Monte Produce, Inc. | 369,757 | 11,795 | ||||||
Helen of Troy Ltd. * | 190,012 | 9,979 | ||||||
Inter Parfums, Inc. | 148,091 | 4,073 | ||||||
PhotoMedex, Inc. * | 17,746 | 110 | ||||||
Sanderson Farms, Inc. | 30,591 | 2,691 | ||||||
Seneca Foods Corp., Class A * | 62,473 | 1,787 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 57 | EQUITY FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SMALL CAP VALUE FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.0% – continued | ||||||||
Consumer Products – 1.9% – continued |
| |||||||
Universal Corp. | 196,213 | $8,710 | ||||||
47,929 | ||||||||
Consumer Services – 0.8% |
| |||||||
Aaron’s, Inc. | 64,724 | 1,574 | ||||||
Bridgepoint Education, Inc. * | 46,229 | 516 | ||||||
Graham Holdings Co., Class B | 5,985 | 4,187 | ||||||
Matthews International Corp., Class A | 37,798 | 1,659 | ||||||
Rent-A-Center, Inc. | 413,114 | 12,538 | ||||||
20,474 | ||||||||
Containers & Packaging – 0.4% |
| |||||||
Myers Industries, Inc. | 371,174 | 6,548 | ||||||
Tredegar Corp. | 178,450 | 3,285 | ||||||
9,833 | ||||||||
Design, Manufacturing & Distribution – 0.9% |
| |||||||
Benchmark Electronics, Inc. * | 359,143 | 7,977 | ||||||
CTS Corp. | 376,591 | 5,984 | ||||||
Fabrinet * | 26,003 | 380 | ||||||
Plexus Corp. * | 187,963 | 6,941 | ||||||
21,282 | ||||||||
Distributors – Consumer Staples – 0.9% |
| |||||||
Andersons (The), Inc. | 178,366 | 11,216 | ||||||
Core-Mark Holding Co., Inc. | 208,616 | 11,065 | ||||||
22,281 | ||||||||
Distributors – Discretionary – 1.8% |
| |||||||
FTD Cos., Inc. * | 164,387 | 5,607 | ||||||
Insight Enterprises, Inc. * | 469,142 | 10,617 | ||||||
PC Connection, Inc. | 217,448 | 4,669 | ||||||
SYNNEX Corp. * | 229,292 | 14,819 | ||||||
Tech Data Corp. * | 10,355 | 610 | ||||||
United Stationers, Inc. | 216,007 | 8,115 | ||||||
44,437 | ||||||||
Electrical Equipment – 0.6% |
| |||||||
ESCO Technologies, Inc. | 21,223 | 738 | ||||||
Powell Industries, Inc. | 10,240 | 419 | ||||||
Watts Water Technologies, Inc., Class A | 247,868 | 14,438 | ||||||
15,595 | ||||||||
Engineering & Construction Services – 1.7% |
| |||||||
Comfort Systems USA, Inc. | 306,075 | 4,147 | ||||||
Dycom Industries, Inc. * | 362,944 | 11,146 | ||||||
EMCOR Group, Inc. | 415,416 | 16,600 | ||||||
Granite Construction, Inc. | 229,886 | 7,313 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.0% – continued | ||||||||
Engineering & Construction Services – 1.7% – continued |
| |||||||
Great Lakes Dredge & Dock Corp. * | 225,042 | $1,391 | ||||||
MYR Group, Inc. * | 16,793 | 404 | ||||||
Pike Corp. * | 23,962 | 285 | ||||||
41,286 | ||||||||
Forest & Paper Products – 1.1% |
| |||||||
Domtar Corp. | 159,338 | 5,597 | ||||||
KapStone Paper and Packaging Corp. * | 325,521 | 9,105 | ||||||
Mercer International, Inc. * | 395,103 | 3,852 | ||||||
Neenah Paper, Inc. | 36,167 | 1,934 | ||||||
PH Glatfelter Co. | 246,143 | 5,403 | ||||||
Schweitzer-Mauduit International, Inc. | 20,906 | 864 | ||||||
26,755 | ||||||||
Gaming, Lodging & Restaurants – 0.6% |
| |||||||
Biglari Holdings, Inc. * | 1,182 | 402 | ||||||
Bob Evans Farms, Inc. | 229,336 | 10,857 | ||||||
DineEquity, Inc. | 16,504 | 1,346 | ||||||
Einstein Noah Restaurant Group, Inc. | 61,674 | 1,243 | ||||||
Texas Roadhouse, Inc. | 77,077 | 2,146 | ||||||
15,994 | ||||||||
Hardware – 2.5% |
| |||||||
Brocade Communications Systems, Inc. | 1,235,396 | 13,429 | ||||||
Comtech Telecommunications Corp. | 95,358 | 3,543 | ||||||
Electronics For Imaging, Inc. * | 334,741 | 14,785 | ||||||
Finisar Corp. * | 506,973 | 8,431 | ||||||
Lexmark International, Inc., Class A | 53,810 | 2,287 | ||||||
Oplink Communications, Inc. | 214,392 | 3,606 | ||||||
PC-Tel, Inc. | 152,644 | 1,159 | ||||||
QLogic Corp. * | 222,285 | 2,036 | ||||||
Sanmina Corp. * | 580,166 | 12,102 | ||||||
VOXX International Corp. * | 229,306 | 2,132 | ||||||
63,510 | ||||||||
Health Care Facilities & Services – 2.4% |
| |||||||
Amedisys, Inc. * | 147,615 | 2,977 | ||||||
Amsurg Corp. * | 197,317 | 9,876 | ||||||
Capital Senior Living Corp. * | 116,644 | 2,476 | ||||||
Five Star Quality Care, Inc. * | 533,765 | 2,012 | ||||||
Hanger, Inc. * | 150,238 | 3,083 | ||||||
Health Net, Inc. * | 63,697 | 2,937 | ||||||
HealthSouth Corp. | 69,964 | 2,582 | ||||||
LHC Group, Inc. * | 14,124 | 328 | ||||||
LifePoint Hospitals, Inc. * | 169,618 | 11,736 | ||||||
Magellan Health, Inc. * | 125,977 | 6,895 | ||||||
Medcath Corp. (1)* | 106,845 | – |
See Notes to the Financial Statements.
EQUITY FUNDS | 58 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.0% – continued | ||||||||
Health Care Facilities & Services – 2.4% – continued |
| |||||||
National Healthcare Corp. | 11,249 | $625 | ||||||
Owens & Minor, Inc. | 83,693 | 2,740 | ||||||
Select Medical Holdings Corp. | 111,974 | 1,347 | ||||||
Triple-S Management Corp., Class B * | 230,318 | 4,583 | ||||||
VCA, Inc. * | 71,058 | 2,795 | ||||||
WellCare Health Plans, Inc. * | 63,860 | 3,853 | ||||||
60,845 | ||||||||
Home & Office Products – 1.3% |
| |||||||
ACCO Brands Corp. * | 96,943 | 669 | ||||||
Beazer Homes USA, Inc. * | 91,444 | 1,535 | ||||||
CSS Industries, Inc. | 94,170 | 2,284 | ||||||
Griffon Corp. | 422,019 | 4,807 | ||||||
Hooker Furniture Corp. | 104,547 | 1,590 | ||||||
La-Z-Boy, Inc. | 238,266 | 4,715 | ||||||
MDC Holdings, Inc. | 69,381 | 1,757 | ||||||
Meritage Homes Corp. * | 137,472 | 4,880 | ||||||
NACCO Industries, Inc., Class A | 60,995 | 3,033 | ||||||
Ryland Group (The), Inc. | 47,716 | 1,586 | ||||||
Standard Pacific Corp. * | 639,812 | 4,792 | ||||||
Steelcase, Inc., Class A | 67,783 | 1,097 | ||||||
32,745 | ||||||||
Industrial Services – 0.3% | ||||||||
Kaman Corp. | 37,285 | 1,465 | ||||||
TAL International Group, Inc. * | 140,507 | 5,796 | ||||||
7,261 | ||||||||
Institutional Financial Services – 0.4% | ||||||||
GFI Group, Inc. | 201,343 | 1,089 | ||||||
Stifel Financial Corp. * | 188,319 | 8,830 | ||||||
9,919 | ||||||||
Insurance – 5.2% | ||||||||
American Equity Investment Life Holding Co. | 418,983 | 9,586 | ||||||
AMERISAFE, Inc. | 82,302 | 3,219 | ||||||
Argo Group International Holdings Ltd. | 32,825 | 1,651 | ||||||
Baldwin & Lyons, Inc., Class B | 9,909 | 245 | ||||||
CNO Financial Group, Inc. | 1,169,131 | 19,828 | ||||||
EMC Insurance Group, Inc. | 66,797 | 1,929 | ||||||
Employers Holdings, Inc. | 225,071 | 4,333 | ||||||
Endurance Specialty Holdings Ltd. | 56,514 | 3,118 | ||||||
FBL Financial Group, Inc., Class A | 27,329 | 1,222 | ||||||
Horace Mann Educators Corp. | 327,136 | 9,327 | ||||||
Kemper Corp. | 58,546 | 1,999 | ||||||
Montpelier Re Holdings Ltd. | 240,195 | 7,468 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.0% – continued | ||||||||
Insurance – 5.2% – continued |
| |||||||
Navigators Group (The), Inc. * | 131,287 | $8,074 | ||||||
Platinum Underwriters Holdings Ltd. | 126,478 | 7,699 | ||||||
Primerica, Inc. | 208,563 | 10,057 | ||||||
ProAssurance Corp. | 49,622 | 2,187 | ||||||
Radian Group, Inc. | 258,900 | 3,692 | ||||||
RLI Corp. | 147,818 | 6,399 | ||||||
Safety Insurance Group, Inc. | 43,199 | 2,329 | ||||||
Selective Insurance Group, Inc. | 94,785 | 2,098 | ||||||
StanCorp Financial Group, Inc. | 171,777 | 10,853 | ||||||
Symetra Financial Corp. | 423,657 | 9,884 | ||||||
United Fire Group, Inc. | 119,049 | 3,306 | ||||||
130,503 | ||||||||
Iron & Steel – 0.3% |
| |||||||
Haynes International, Inc. | 10,544 | 485 | ||||||
Olympic Steel, Inc. | 85,373 | 1,756 | ||||||
Steel Dynamics, Inc. | 177,710 | 4,018 | ||||||
6,259 | ||||||||
Leisure Products – 0.0% |
| |||||||
LeapFrog Enterprises, Inc. * | 54,486 | 326 | ||||||
Machinery – 1.7% |
| |||||||
Columbus McKinnon Corp. | 15,736 | 346 | ||||||
Curtiss-Wright Corp. | 241,537 | 15,922 | ||||||
Hollysys Automation Technologies Ltd. * | 42,027 | 945 | ||||||
Hyster-Yale Materials Handling, Inc. | 99,232 | 7,107 | ||||||
Kadant, Inc. | 44,103 | 1,722 | ||||||
MSA Safety, Inc. | 23,539 | 1,163 | ||||||
Regal-Beloit Corp. | 38,473 | 2,472 | ||||||
Rofin-Sinar Technologies, Inc. * | 238,256 | 5,494 | ||||||
Standex International Corp. | 113,256 | 8,397 | ||||||
43,568 | ||||||||
Manufactured Goods – 1.4% | ||||||||
Aegion Corp. * | 89,505 | 1,991 | ||||||
Barnes Group, Inc. | 334,460 | 10,151 | ||||||
EnPro Industries, Inc. * | 45,183 | 2,735 | ||||||
Gibraltar Industries, Inc. * | 396,915 | 5,434 | ||||||
Rogers Corp. * | 132,849 | 7,275 | ||||||
RTI International Metals, Inc. * | 26,117 | 644 | ||||||
Simpson Manufacturing Co., Inc. | 265,735 | 7,746 | ||||||
35,976 | ||||||||
Media – 1.3% | ||||||||
AOL, Inc. * | 66,148 | 2,973 | ||||||
Entercom Communications Corp., Class A * | 363,282 | 2,917 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 59 | EQUITY FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SMALL CAP VALUE FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.0% – continued | ||||||||
Media – 1.3% – continued | ||||||||
EW Scripps (The) Co., Class A * | 48,660 | $794 | ||||||
Harte-Hanks, Inc. | 330,289 | 2,104 | ||||||
Journal Communications, Inc., Class A * | 650,893 | 5,487 | ||||||
Meredith Corp. | 160,190 | 6,856 | ||||||
New York Times (The) Co., Class A | 127,143 | 1,427 | ||||||
Scholastic Corp. | 325,682 | 10,526 | ||||||
33,084 | ||||||||
Medical Equipment & Devices – 1.3% | ||||||||
AngioDynamics, Inc. * | 201,228 | 2,761 | ||||||
Bio-Rad Laboratories, Inc., Class A * | 22,909 | 2,598 | ||||||
CONMED Corp. | 364,008 | 13,410 | ||||||
CryoLife, Inc. | 305,095 | 3,011 | ||||||
Greatbatch, Inc. * | 236,934 | 10,096 | ||||||
Natus Medical, Inc. * | 26,001 | 767 | ||||||
Orthofix International N.V. * | 16,586 | 514 | ||||||
33,157 | ||||||||
Metals & Mining – 0.3% | ||||||||
Encore Wire Corp. | 39,840 | 1,478 | ||||||
Kaiser Aluminum Corp. | 72,173 | 5,501 | ||||||
Stillwater Mining Co. * | 63,098 | 948 | ||||||
7,927 | ||||||||
Oil, Gas & Coal – 4.8% | ||||||||
Basic Energy Services, Inc. * | 46,495 | 1,008 | ||||||
Bristow Group, Inc. | 261,967 | 17,604 | ||||||
C&J Energy Services, Inc. * | 46,234 | 1,412 | ||||||
Callon Petroleum Co. * | 346,093 | 3,049 | ||||||
Carrizo Oil & Gas, Inc. * | 119,212 | 6,416 | ||||||
Cloud Peak Energy, Inc. * | 468 | 6 | ||||||
Dawson Geophysical Co. | 6,894 | 125 | ||||||
Dril-Quip, Inc. * | 22,890 | 2,046 | ||||||
Enbridge Energy Management LLC * | 76,149 | 2,833 | ||||||
Gran Tierra Energy, Inc. * | 591,558 | 3,277 | ||||||
Helix Energy Solutions Group, Inc. * | 406,648 | 8,971 | ||||||
Matrix Service Co. * | 22,222 | 536 | ||||||
Natural Gas Services Group, Inc. * | 177,844 | 4,281 | ||||||
Newpark Resources, Inc. * | 890,952 | 11,083 | ||||||
Northern Oil and Gas, Inc. * | 54,531 | 775 | ||||||
Parker Drilling Co. * | 101,745 | 503 | ||||||
PDC Energy, Inc. * | 203,801 | 10,249 | ||||||
PHI, Inc. (Non Voting) * | 111,397 | 4,584 | ||||||
Pioneer Energy Services Corp. * | 374,075 | 5,245 | ||||||
Resolute Energy Corp. * | 112,863 | 708 | ||||||
Rex Energy Corp. * | 138,046 | 1,749 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.0% – continued | ||||||||
Oil, Gas & Coal – 4.8% – continued | ||||||||
SEACOR Holdings, Inc. * | 17,214 | $1,288 | ||||||
SemGroup Corp., Class A | 9,879 | 823 | ||||||
Steel Excel, Inc. * | 26,148 | 837 | ||||||
Stone Energy Corp. * | 433,952 | 13,609 | ||||||
Tesco Corp. | 33,304 | 661 | ||||||
TETRA Technologies, Inc. * | 66,809 | 723 | ||||||
Tidewater, Inc. | 42,301 | 1,651 | ||||||
VAALCO Energy, Inc. * | 561,478 | 4,773 | ||||||
W&T Offshore, Inc. | 384,909 | 4,234 | ||||||
Western Refining, Inc. | 66,804 | 2,805 | ||||||
World Fuel Services Corp. | 19,810 | 791 | ||||||
118,655 | ||||||||
Passenger Transportation – 0.7% | ||||||||
Hawaiian Holdings, Inc. * | 44,365 | 597 | ||||||
JetBlue Airways Corp. * | 1,669,870 | 17,734 | ||||||
18,331 | ||||||||
Real Estate Investment Trusts – 11.8% | ||||||||
Acadia Realty Trust | 183,942 | 5,073 | ||||||
Agree Realty Corp. | 136,049 | 3,725 | ||||||
American Assets Trust, Inc. | 33,917 | 1,118 | ||||||
Anworth Mortgage Asset Corp. | 281,983 | 1,351 | ||||||
Associated Estates Realty Corp. | 182,350 | 3,193 | ||||||
Campus Crest Communities, Inc. | 55,150 | 353 | ||||||
Capstead Mortgage Corp. | 611,130 | 7,480 | ||||||
CBL & Associates Properties, Inc. | 324,130 | 5,802 | ||||||
Chesapeake Lodging Trust | 216,243 | 6,303 | ||||||
Chimera Investment Corp. | 946,913 | 2,879 | ||||||
Corporate Office Properties Trust | 87,300 | 2,245 | ||||||
DiamondRock Hospitality Co. | 863,487 | 10,949 | ||||||
DuPont Fabros Technology, Inc. | 232,352 | 6,283 | ||||||
Dynex Capital, Inc. | 290,612 | 2,348 | ||||||
EPR Properties | 366,474 | 18,573 | ||||||
Equity One, Inc. | 400,521 | 8,663 | ||||||
First Industrial Realty Trust, Inc. | 383,984 | 6,493 | ||||||
Franklin Street Properties Corp. | 482,043 | 5,409 | ||||||
Geo Group (The), Inc. | 384,287 | 14,687 | ||||||
Gladstone Commercial Corp. | 49,241 | 837 | ||||||
Government Properties Income Trust | 158,042 | 3,463 | ||||||
Healthcare Realty Trust, Inc. | 300,815 | 7,123 | ||||||
Highwoods Properties, Inc. | 305,030 | 11,866 | ||||||
Invesco Mortgage Capital, Inc. | 472,188 | 7,423 | ||||||
Investors Real Estate Trust | 449,999 | 3,465 | ||||||
Kite Realty Group Trust | 122,266 | 2,964 |
See Notes to the Financial Statements.
EQUITY FUNDS | 60 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.0% – continued | ||||||||
Real Estate Investment Trusts – 11.8% – continued |
| |||||||
LaSalle Hotel Properties | 599,309 | $20,520 | ||||||
LTC Properties, Inc. | 255,179 | 9,414 | ||||||
Mack-Cali Realty Corp. | 75,094 | 1,435 | ||||||
Medical Properties Trust, Inc. | 1,242,479 | 15,233 | ||||||
MFA Financial, Inc. | 730,143 | 5,681 | ||||||
National Health Investors, Inc. | 105,257 | 6,014 | ||||||
New York Mortgage Trust, Inc. | 164,804 | 1,192 | ||||||
One Liberty Properties, Inc. | 82,021 | 1,659 | ||||||
Pebblebrook Hotel Trust | 195,643 | 7,305 | ||||||
Pennsylvania Real Estate Investment Trust | 396,743 | 7,911 | ||||||
Piedmont Office Realty Trust, Inc., Class A | 143,184 | 2,526 | ||||||
PS Business Parks, Inc. | 59,566 | 4,535 | ||||||
Ramco-Gershenson Properties Trust | 327,888 | 5,328 | ||||||
Redwood Trust, Inc. | 634,930 | 10,527 | ||||||
Resource Capital Corp. | 809,194 | 3,941 | ||||||
Retail Opportunity Investments Corp. | 220,516 | 3,242 | ||||||
RLJ Lodging Trust | 549,908 | 15,656 | ||||||
Silver Bay Realty Trust Corp. | 37,341 | 605 | ||||||
Starwood Waypoint Residential Trust | 43,154 | 1,122 | ||||||
Strategic Hotels & Resorts, Inc. * | 723,369 | 8,427 | ||||||
Sunstone Hotel Investors, Inc. | 556,969 | 7,697 | ||||||
Weingarten Realty Investors | 145,952 | 4,598 | ||||||
Winthrop Realty Trust | 28,320 | 427 | ||||||
295,063 | ||||||||
Recreational Facilities & Services – 0.6% | ||||||||
Carmike Cinemas, Inc. * | 15,287 | 474 | ||||||
International Speedway Corp., Class A | 113,660 | 3,596 | ||||||
Life Time Fitness, Inc. * | 36,810 | 1,857 | ||||||
Marcus (The) Corp. | 319,171 | 5,043 | ||||||
Vail Resorts, Inc. | 52,091 | 4,519 | ||||||
15,489 | ||||||||
Renewable Energy – 0.6% | ||||||||
Advanced Energy Industries, Inc. * | 136,343 | 2,562 | ||||||
EnerSys | 105,719 | 6,199 | ||||||
REX American Resources Corp. * | 87,526 | 6,379 | ||||||
15,140 | ||||||||
Retail – Consumer Staples – 0.8% | ||||||||
Casey’s General Stores, Inc. | 75,843 | 5,438 | ||||||
Fred’s, Inc., Class A | 450,756 | 6,311 | ||||||
Ingles Markets, Inc., Class A | 11,083 | 263 | ||||||
Pantry (The), Inc. * | 201,805 | 4,082 | ||||||
PriceSmart, Inc. | 18,871 | 1,616 | ||||||
SpartanNash Co. | 18,655 | 363 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.0% – continued | ||||||||
Retail – Consumer Staples – 0.8% – continued |
| |||||||
Weis Markets, Inc. | 22,989 | $897 | ||||||
18,970 | ||||||||
Retail – Discretionary – 2.3% | ||||||||
Children’s Place (The), Inc. | 19,232 | 917 | ||||||
Ethan Allen Interiors, Inc. | 142,570 | 3,251 | ||||||
Finish Line (The), Inc., Class A | 42,104 | 1,054 | ||||||
Genesco, Inc. * | 20,560 | 1,537 | ||||||
Group 1 Automotive, Inc. | 120,691 | 8,775 | ||||||
Haverty Furniture Cos., Inc. | 146,619 | 3,195 | ||||||
hhgregg, Inc. * | 26,653 | 168 | ||||||
Men’s Wearhouse (The), Inc. | 39,035 | 1,843 | ||||||
Outerwall, Inc. * | 22,775 | 1,278 | ||||||
Pep Boys-Manny Moe & Jack (The) * | 339,448 | 3,024 | ||||||
PHH Corp. * | 587,543 | 13,137 | ||||||
Rush Enterprises, Inc., Class A * | 188,514 | 6,306 | ||||||
Shoe Carnival, Inc. | 116,682 | 2,078 | ||||||
Sonic Automotive, Inc., Class A | 153,432 | 3,761 | ||||||
Stage Stores, Inc. | 353,187 | 6,043 | ||||||
56,367 | ||||||||
Semiconductors – 3.4% | ||||||||
Amkor Technology, Inc. * | 472,546 | 3,974 | ||||||
Brooks Automation, Inc. | 719,692 | 7,564 | ||||||
Cirrus Logic, Inc. * | 54,100 | 1,128 | ||||||
Diodes, Inc. * | 39,320 | 940 | ||||||
Entegris, Inc. * | 911,192 | 10,479 | ||||||
GSI Technology, Inc. * | 189,207 | 1,024 | ||||||
Intersil Corp., Class A | 552,076 | 7,845 | ||||||
Kulicke & Soffa Industries, Inc. * | 425,014 | 6,048 | ||||||
MKS Instruments, Inc. | 475,163 | 15,861 | ||||||
OmniVision Technologies, Inc. * | 308,756 | 8,170 | ||||||
Park Electrochemical Corp. | 128,579 | 3,028 | ||||||
Power Integrations, Inc. | 31,434 | 1,695 | ||||||
Rudolph Technologies, Inc. * | 27,933 | 253 | ||||||
Semtech Corp. * | 42,666 | 1,158 | ||||||
Silicon Image, Inc. * | 445,682 | 2,246 | ||||||
TriQuint Semiconductor, Inc. * | 137,379 | 2,620 | ||||||
Ultra Clean Holdings, Inc. * | 123,799 | 1,108 | ||||||
Veeco Instruments, Inc. * | 213,536 | 7,463 | ||||||
Vishay Intertechnology, Inc. | 33,842 | 484 | ||||||
Xcerra Corp. * | 136,625 | 1,337 | ||||||
84,425 | ||||||||
Software – 1.3% | ||||||||
Acxiom Corp. * | 306,388 | 5,071 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 61 | EQUITY FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SMALL CAP VALUE FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.0% – continued | ||||||||
Software – 1.3% – continued | ||||||||
Advent Software, Inc. | 55,821 | $1,762 | ||||||
Blackbaud, Inc. | 27,862 | 1,095 | ||||||
Dealertrack Technologies, Inc. * | 46,381 | 2,013 | ||||||
Ebix, Inc. | 17,185 | 244 | ||||||
Epiq Systems, Inc. | 30,938 | 543 | ||||||
Mentor Graphics Corp. | 342,918 | 7,028 | ||||||
MicroStrategy, Inc., Class A * | 12,206 | 1,597 | ||||||
Progress Software Corp. * | 120,748 | 2,887 | ||||||
SS&C Technologies Holdings, Inc. * | 51,208 | 2,247 | ||||||
Take-Two Interactive Software, Inc. * | 318,274 | 7,343 | ||||||
31,830 | ||||||||
Specialty Finance – 2.0% | ||||||||
Air Lease Corp. | 84,992 | 2,762 | ||||||
Aircastle Ltd. | 281,559 | 4,606 | ||||||
AMERCO | 7,037 | 1,843 | ||||||
Arlington Asset Investment Corp., Class A | 26,932 | 684 | ||||||
Cash America International, Inc. | 24,408 | 1,069 | ||||||
Encore Capital Group, Inc. * | 175,894 | 7,794 | ||||||
First American Financial Corp. | 433,600 | 11,759 | ||||||
Marlin Business Services Corp. | 10,971 | 201 | ||||||
Nelnet, Inc., Class A | 259,641 | 11,188 | ||||||
NewStar Financial, Inc. * | 149,516 | 1,681 | ||||||
Stewart Information Services Corp. | 17,984 | 528 | ||||||
Willis Lease Finance Corp. * | 38,174 | 783 | ||||||
World Acceptance Corp. * | 70,692 | 4,772 | ||||||
49,670 | ||||||||
Technology Services – 1.7% | ||||||||
Black Box Corp. | 13,807 | 322 | ||||||
CACI International, Inc., Class A * | 186,005 | 13,256 | ||||||
Convergys Corp. | 691,307 | 12,319 | ||||||
CSG Systems International, Inc. | 28,982 | 762 | ||||||
Cubic Corp. | 97,974 | 4,585 | ||||||
Fair Isaac Corp. | 31,816 | 1,753 | �� | |||||
ICF International, Inc. * | 16,798 | 517 | ||||||
MAXIMUS, Inc. | 162,512 | 6,522 | ||||||
Sapient Corp. * | 89,982 | 1,260 | ||||||
Sykes Enterprises, Inc. * | 12,562 | 251 | ||||||
41,547 | ||||||||
Telecom – 0.6% | ||||||||
General Communication, Inc., Class A * | 323,022 | 3,524 | ||||||
Premiere Global Services, Inc. * | 497,152 | 5,951 | ||||||
Shenandoah Telecommunications Co. | 20,441 | 507 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.0% – continued | ||||||||
Telecom – 0.6% – continued | ||||||||
Telephone & Data Systems, Inc. | 188,392 | $4,514 | ||||||
14,496 | ||||||||
Transportation & Logistics – 1.7% | ||||||||
Hornbeck Offshore Services, Inc. * | 317,376 | 10,388 | ||||||
Marten Transport Ltd. | 28,386 | 506 | ||||||
Mobile Mini, Inc. | 337,787 | 11,812 | ||||||
Patriot Transportation Holding, Inc. * | 8,197 | 278 | ||||||
Saia, Inc. * | 212,801 | 10,546 | ||||||
Ship Finance International Ltd. | 477,937 | 8,087 | ||||||
Universal Truckload Services, Inc. | 45,168 | 1,095 | ||||||
42,712 | ||||||||
Transportation Equipment – 0.4% | ||||||||
American Railcar Industries, Inc. | 17,173 | 1,269 | ||||||
Greenbrier (The) Cos., Inc. | 133,576 | 9,802 | ||||||
11,071 | ||||||||
Utilities – 5.5% | ||||||||
ALLETE, Inc. | 193,943 | 8,609 | ||||||
Avista Corp. | 349,092 | 10,658 | ||||||
Black Hills Corp. | 172,530 | 8,261 | ||||||
Chesapeake Utilities Corp. | 11,466 | 478 | ||||||
Cleco Corp. | 298,234 | 14,360 | ||||||
El Paso Electric Co. | 290,033 | 10,601 | ||||||
Empire District Electric (The) Co. | 203,949 | 4,925 | ||||||
Great Plains Energy, Inc. | 32,665 | 789 | ||||||
IDACORP, Inc. | 323,893 | 17,364 | ||||||
Laclede Group (The), Inc. | 110,249 | 5,115 | ||||||
NorthWestern Corp. | 207,717 | 9,422 | ||||||
Otter Tail Corp. | 171,317 | 4,569 | ||||||
PNM Resources, Inc. | 392,156 | 9,769 | ||||||
Portland General Electric Co. | 172,644 | 5,545 | ||||||
South Jersey Industries, Inc. | 66,132 | 3,529 | ||||||
Southwest Gas Corp. | 310,479 | 15,083 | ||||||
WGL Holdings, Inc. | 194,154 | 8,178 | ||||||
137,255 | ||||||||
Waste & Environment Services & Equipment – 0.3% |
| |||||||
Cantel Medical Corp. | 155,463 | 5,345 | ||||||
Tetra Tech, Inc. | 55,451 | 1,385 | ||||||
6,730 | ||||||||
Total Common Stocks | ||||||||
(Cost $1,797,314) | 2,394,680 |
See Notes to the Financial Statements.
EQUITY FUNDS | 62 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
CONVERTIBLE PREFERRED STOCKS – 0.1% | ||||||||
Medical Equipment & Devices Manufacturing – 0.1% |
| |||||||
Alere, Inc., 3.00% | 3,417 | $1,106 | ||||||
Total Convertible Preferred Stocks | ||||||||
(Cost $757) | 1,106 | |||||||
MASTER LIMITED PARTNERSHIPS – 0.2% | ||||||||
Automotive – 0.2% | ||||||||
Compass Diversified Holdings | 270,333 | 4,733 | ||||||
Total Master Limited Partnerships | ||||||||
(Cost $3,311) | 4,733 | |||||||
OTHER – 0.0% (2) | ||||||||
Escrow DLB Oil & Gas * | 2,100 | – | ||||||
Escrow Gerber Scientific, Inc. * | 264,734 | – | ||||||
Total Other | ||||||||
(Cost $–) | – | |||||||
INVESTMENT COMPANIES – 3.3% | ||||||||
Northern Institutional Funds – Diversified Assets Portfolio, 0.01% (3)(4) | 83,370,659 | 83,371 | ||||||
Total Investment Companies | ||||||||
(Cost $83,371) | 83,371 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
SHORT-TERM INVESTMENTS – 0.3% | ||||||||
U.S. Treasury Bill, | $7,209 | $7,209 | ||||||
Total Short-Term Investments | ||||||||
(Cost $7,209) | 7,209 | |||||||
Total Investments – 99.9% | ||||||||
(Cost $1,891,962) | 2,491,099 | |||||||
Other Assets less Liabilities – 0.1% | 2,713 | |||||||
NET ASSETS – 100.0% | $2,493,812 |
(1) | Level 3 asset that is worthless, bankrupt or has been delisted. |
(2) | Security listed as “escrow” is considered to be worthless. |
(3) | At March 31, 2014, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $116,392,000 with net sales of approximately $33,021,000 during the six months ended September 30, 2014. |
(4) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
(5) | Security pledged as collateral to cover margin requirements for open futures contracts. |
* | Non-Income Producing Security |
Percentages shown are based on Net Assets.
At September 30, 2014, the Fund had open futures contracts as follows:
TYPE | NUMBER OF CONTRACTS | NOTIONAL AMOUNT (000s) | CONTRACT POSITION | CONTRACT EXP. | UNREALIZED (000s) | |||||||||||||||
E-mini S&P 500 | 240 | $23,586 | Long | 12/14 | $(176) | |||||||||||||||
Russell 2000 | ||||||||||||||||||||
Mini Index | 618 | 67,770 | Long | 12/14 | (3,501) | |||||||||||||||
Total | $(3,677) |
At September 30, 2014, the industry sectors for the Fund were:
INDUSTRY SECTOR | % OF LONG-TERM INVESTMENTS | |||
Consumer Discretionary | 10.1% | |||
Consumer Staples | 2.7 | |||
Energy | 6.0 | |||
Financials | 37.9 | |||
Health Care | 4.4 | |||
Industrials | 15.1 | |||
Information Technology | 12.0 | |||
Materials | 5.5 | |||
Telecommunication Services | 0.6 | |||
Utilities | 5.7 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 63 | EQUITY FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SMALL CAP VALUE FUND continued | SEPTEMBER 30, 2014 (UNAUDITED) |
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Common Stocks | ||||||||||||||||
Oil, Gas & Coal | $117,818 | $837 | $– | $118,655 | ||||||||||||
All Other Industries | 2,276,025 | (1) | – | – | 2,276,025 | |||||||||||
Convertible Preferred Stocks | – | 1,106 | (1) | – | 1,106 | |||||||||||
Master Limited Partnerships | 4,733 | (1) | – | – | 4,733 | |||||||||||
Investment Companies | 83,371 | – | – | 83,371 | ||||||||||||
Short-Term Investments | – | 7,209 | – | 7,209 | ||||||||||||
Total Investments | $2,481,947 | $9,152 | $– | $2,491,099 | ||||||||||||
OTHER FINANCIAL INSTRUMENTS |
| |||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (3,677) | $– | $– | $ | (3,677) |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
EQUITY FUNDS | 64 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
TECHNOLOGY FUND | SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.9% | ||||||||
Biotechnology & Pharmaceuticals – 1.2% | ||||||||
BioMarin Pharmaceutical, Inc. * | 13,574 | $980 | ||||||
Commercial Services – 2.6% | ||||||||
Accretive Health, Inc. * | 110,646 | 858 | ||||||
HMS Holdings Corp. * | 63,274 | 1,193 | ||||||
2,051 | ||||||||
Electrical Equipment – 2.1% | ||||||||
Amphenol Corp., Class A | 9,844 | 983 | ||||||
Trimble Navigation Ltd. * | 21,102 | 644 | ||||||
1,627 | ||||||||
Hardware – 13.9% | ||||||||
Apple, Inc. | 35,133 | 3,540 | ||||||
Aruba Networks, Inc. * | 40,386 | 872 | ||||||
Cisco Systems, Inc. | 30,989 | 780 | ||||||
EMC Corp. | 53,262 | 1,558 | ||||||
F5 Networks, Inc. * | 6,537 | 776 | ||||||
FEI Co. | 8,718 | 657 | ||||||
Juniper Networks, Inc. | 51,887 | 1,149 | ||||||
NetApp, Inc. | 13,866 | 596 | ||||||
Nimble Storage, Inc. * | 14,696 | 382 | ||||||
Seagate Technology PLC | 10,524 | 603 | ||||||
10,913 | ||||||||
Health Care Facilities & Services – 3.5% | ||||||||
Catamaran Corp. * | 36,685 | 1,546 | ||||||
Express Scripts Holding Co. * | 17,038 | 1,204 | ||||||
2,750 | ||||||||
Media – 12.8% | ||||||||
Alliance Data Systems Corp. * | 2,394 | 594 | ||||||
Everyday Health, Inc. * | 42,894 | 599 | ||||||
Facebook, Inc., Class A * | 26,839 | 2,121 | ||||||
Google, Inc., Class A * | 2,797 | 1,646 | ||||||
Google, Inc., Class C * | 2,838 | 1,639 | ||||||
LinkedIn Corp., Class A * | 7,696 | 1,599 | ||||||
Pandora Media, Inc. * | 31,126 | 752 | ||||||
Priceline Group (The), Inc. * | 938 | 1,087 | ||||||
10,037 | ||||||||
Medical Equipment & Devices – 9.0% | ||||||||
Baxter International, Inc. | 34,422 | 2,471 | ||||||
CR Bard, Inc. | 11,668 | 1,665 | ||||||
Intuitive Surgical, Inc. * | 2,742 | 1,266 | ||||||
Zimmer Holdings, Inc. | 16,068 | 1,616 | ||||||
7,018 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.9% – continued | ||||||||
Retail – Discretionary – 1.7% | ||||||||
eBay, Inc. * | 23,104 | $1,308 | ||||||
Semiconductors – 16.1% | ||||||||
Altera Corp. | 21,955 | 786 | ||||||
ARM Holdings PLC ADR | 34,671 | 1,515 | ||||||
ASML Holding N.V. (Registered) | 10,400 | 1,028 | ||||||
Intel Corp. | 23,096 | 804 | ||||||
KLA-Tencor Corp. | 9,516 | 750 | ||||||
Lam Research Corp. | 17,154 | 1,281 | ||||||
Linear Technology Corp. | 28,571 | 1,268 | ||||||
Microchip Technology, Inc. | 21,215 | 1,002 | ||||||
NXP Semiconductor N.V. * | 20,042 | 1,371 | ||||||
QUALCOMM, Inc. | 15,300 | 1,144 | ||||||
SanDisk Corp. | 7,916 | 775 | ||||||
Xilinx, Inc. | 21,181 | 897 | ||||||
12,621 | ||||||||
Software – 24.5% | ||||||||
Activision Blizzard, Inc. | 36,625 | 761 | ||||||
Check Point Software Technologies Ltd. * | 20,556 | 1,423 | ||||||
Citrix Systems, Inc. * | 14,074 | 1,004 | ||||||
CommVault Systems, Inc. * | 19,988 | 1,007 | ||||||
Imperva, Inc. * | 30,011 | 862 | ||||||
LogMeIn, Inc. * | 19,049 | 878 | ||||||
Microsoft Corp. | 22,171 | 1,028 | ||||||
Oracle Corp. | 44,356 | 1,698 | ||||||
Palo Alto Networks, Inc. * | 8,174 | 802 | ||||||
Proofpoint, Inc. * | 19,002 | 706 | ||||||
Qlik Technologies, Inc. * | 24,398 | 660 | ||||||
Qualys, Inc. * | 28,984 | 771 | ||||||
Red Hat, Inc. * | 34,794 | 1,954 | ||||||
salesforce.com, Inc. * | 36,746 | 2,114 | ||||||
ServiceNow, Inc. * | 16,217 | 953 | ||||||
Splunk, Inc. * | 7,112 | 394 | ||||||
Teradata Corp. * | 23,008 | 964 | ||||||
VMware, Inc., Class A * | 12,994 | 1,219 | ||||||
19,198 | ||||||||
Specialty Finance – 4.0% | ||||||||
Fidelity National Information Services, Inc. | 15,209 | 856 | ||||||
Fiserv, Inc. * | 13,855 | 895 | ||||||
MasterCard, Inc., Class A | 14,135 | 1,045 | ||||||
Xoom Corp. * | 14,207 | 312 | ||||||
3,108 | ||||||||
Technology Services – 4.3% | ||||||||
Accenture PLC, Class A | 12,070 | 982 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 65 | EQUITY FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
TECHNOLOGY FUND continued | SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.9% – continued | ||||||||
Technology Services – 4.3% – continued |
| |||||||
Amdocs Ltd. | 18,229 | $836 | ||||||
Cognizant Technology Solutions Corp., Class A * | 34,466 | 1,543 | ||||||
3,361 | ||||||||
Telecom – 1.2% |
| |||||||
Rackspace Hosting, Inc. * | 29,505 | 960 | ||||||
Total Common Stocks | ||||||||
(Cost $58,538) | 75,932 | |||||||
INVESTMENT COMPANIES – 1.9% | ||||||||
Northern Institutional Funds – Diversified Assets Portfolio, 0.01% (1)(2) | 1,475,585 | 1,476 | ||||||
Total Investment Companies | ||||||||
(Cost $1,476) | 1,476 | |||||||
Total Investments – 98.8% | ||||||||
(Cost $60,014) | 77,408 | |||||||
Other Assets less Liabilities – 1.2% |
| 961 | ||||||
NET ASSETS – 100.0% | $78,369 |
(1) | At March 31, 2014, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $2,398,000 with net sales of approximately $922,000 during the six months ended September 30, 2014. |
(2) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
* | Non-Income Producing Security |
Percentages shown are based on Net Assets.
At September 30, 2014, the industry sectors for the Fund were:
INDUSTRY SECTOR | % OF LONG-TERM INVESTMENTS | |||
Consumer Discretionary | 1.4% | |||
Health Care | 16.9 | |||
Information Technology | 81.7 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Common Stocks | $75,932 | (1) | $– | $– | $75,932 | |||||||||||
Investment Companies | 1,476 | – | – | 1,476 | ||||||||||||
Total Investments | $77,408 | $– | $– | $77,408 |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
EQUITY FUNDS | 66 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
EQUITY FUNDS
SEPTEMBER 30, 2014 (UNAUDITED) |
1. ORGANIZATION
Northern Funds (the “Trust”) is a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust offers 48 funds as of September 30, 2014, each with its own investment objective (e.g., long-term capital appreciation, total return or income consistent with preservation of capital). The Income Equity, International Equity, Large Cap Core, Large Cap Equity, Large Cap Growth, Large Cap Value, Small Cap Core, Small Cap Value and Technology Funds (each a “Fund” and collectively, the “Funds”) are separate, diversified investment portfolios of the Trust. Each of the Funds is presented herein.
Northern Trust Investments, Inc. (“NTI”), a subsidiary of The Northern Trust Company (“Northern Trust”), serves as the investment adviser for each of the Funds. Northern Trust serves as the custodian and transfer agent for the Trust. NTI serves as the Trust’s administrator. Northern Funds Distributors, LLC is the Trust’s distributor.
2. SIGNIFICANT ACCOUNTING POLICIES
The Trust, which is an investment company within the scope of Financial Accounting Standards Board (“FASB”) Accounting Standards Update 2013-08, follows accounting and reporting guidance under FASB Accounting Standards Codification Topic 946, “Financial Services-Investment Companies”.
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“U.S.”) or “U.S. GAAP”. The preparation of financial statements in conformity with U.S. 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 may differ from those estimates.
The net asset value (“NAV”) of each Fund is determined daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), generally 3:00 P.M. Central Time, on each day the NYSE is open for trading.
A) VALUATION OF SECURITIES AND DERIVATIVE CONTRACTS Securities are valued at their fair value. Securities traded on U.S. securities exchanges or in the NASDAQ National Market System are principally valued at the regular trading session closing price (generally, 3:00 P.M. Central Time) on the exchange or market in which such securities are principally traded. If any such security is not traded on a valuation date, it is valued at the most recent quoted bid price. Over-the-counter securities not reported in the NASDAQ National Market System are also generally valued at the most recent quoted bid price. Fixed income securities, however, may be valued on the basis of evaluated prices provided by independent pricing services when such prices are believed to reflect the fair value of such securities or broker-provided prices. Such prices may be determined by taking into account other similar securities’ prices, yields, maturities, call features, ratings, institutional size trading in similar groups of securities and developments related to specific securities.
The values of securities of foreign issuers are generally based upon market quotations which, depending upon local convention or regulation, may be the last sale price, the last bid price or the mean between the last bid and asked price as of, in each case, the close of the appropriate exchange or other designated time. Foreign fixed income securities, however, may, like domestic fixed income securities, be valued based on evaluated prices provided by independent pricing services when such prices are believed to reflect the fair value of such securities.
Shares of open-end investment companies are valued at their NAV. Spot and forward foreign currency exchange contracts are generally valued using an independent pricing service. Exchange-traded financial futures and options are valued at the settlement price as established by the exchange on which they are traded. The foregoing prices may be obtained from one or more independent pricing services or, as needed or applicable, independent broker-dealers. Short-term investments with a maturity of 60 days or less are valued at their amortized cost, which NTI, as authorized by the Board of Trustees (the “Board”), has determined approximates fair value.
Any securities for which market quotations are not readily available or are believed to be incorrect are valued at fair value as determined in good faith by NTI under the supervision of the Board. The Trust, in its discretion, may make adjustments to the prices of securities held by a Fund if an event occurs after the publication of fair values normally used by a Fund but before the time as of which the Fund calculates its NAV, depending on the nature and significance of the event, consistent with applicable regulatory guidance and U.S. GAAP. This may occur particularly with respect to certain foreign securities held by a Fund, in which case the Trust may use adjustment factors obtained from an independent evaluation service that are intended to reflect more accurately the fair value of those securities as of the time the Fund’s NAV is calculated.
Northern Trust’s Pricing Unit (the “NT Pricing Unit”) is responsible for supplying a value for each portfolio security used in the NAV computations. Securities or other assets for which market
NORTHERN FUNDS SEMIANNUAL REPORT | 67 | EQUITY FUNDS |
Table of Contents
EQUITY FUNDS
NOTES TO THE FINANCIAL STATEMENTS continued
quotations are not readily available or for which market quotations do not represent the value at the time of pricing are fair valued in accordance with policies and procedures established by, and subject to oversight of the Funds’ Board. NTI has established a pricing and valuation committee (the “Asset Management PVC”) whose membership includes representatives of NTI, as well as independent control personnel from Northern Trust’s Legal and Fund Administration and NTI’s Compliance and Risk Management groups. The Asset Management PVC is responsible for the fair valuation of portfolio securities and the monitoring of the fair valuation process, subject to the Board’s oversight.
The Asset Management PVC is responsible for making the determination of the fair value of a security. In making its determination, the Asset Management PVC considers factors that it deems appropriate to the determination of the fair value of the security. Such factors include, but are not limited to, the type of security; the current financial position of the issuer; the cost of the investment; information as to any transactions or offers with respect to a security; market value of a similar freely-traded security; and news events. NTI will continue to monitor markets and the issuer’s circumstances that affect a security’s valuation to determine the continued appropriateness of a security’s fair valuation. The Asset Management PVC will review if the markets and issuer’s circumstances relevant to the valuation of a fair valued security change materially.
For each Level 3 security, if any, that has been fair valued pursuant to the policies adopted by the Board, the fair value price is compared against the last available and next available market quotations. The results of such back testing and fair valued securities are reported quarterly to the Valuation Committee of the Board.
The use of fair valuation involves the risk that the values used by the Funds to price their investments may be higher or lower than the values used by other unaffiliated investment companies and investors to price the same investments.
B) FUTURES CONTRACTS Certain Funds invest in long or short futures contracts for hedging purposes, to increase total return (i.e., for speculative purposes) or to maintain liquidity. When used as a hedge, a Fund will sell a futures contract in order to offset a decrease in the fair value of its portfolio securities that might otherwise result from a market decline. A Fund will do so either to hedge the value of its portfolio securities as a whole, or to protect against declines occurring prior to sales of securities in the value of the securities to be sold. Conversely, a Fund will purchase a futures contract as a hedge in anticipation of purchases of securities. In addition, a Fund will utilize futures contracts in anticipation of changes in the composition of its portfolio holdings. 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 generally required to make a margin deposit with the custodian of a specified amount of liquid assets. Futures are marked to market each day with the change in value reflected in the unrealized gains or losses. Risk may arise as a result of the potential inability of the counterparties to meet the terms of their contracts. Credit risk is mitigated to the extent that the exchange on which a particular futures contract is traded assumes the risk of a counterparty defaulting on its obligations under the contract. The Statements of Operations include any realized gains or losses, on closed futures contracts, in Net realized gains (losses) on futures contracts, and any unrealized gains or losses on open futures contracts in Net change in unrealized appreciation (depreciation) on futures contracts. Further information on the impact of these positions on the Fund’s financial statements can be found in Note 9.
At September 30, 2014, the Large Cap Core, Large Cap Value, Small Cap Core and Small Cap Value Funds had entered into exchange-traded long futures contracts. The aggregate fair value of securities pledged to cover margin requirements for open positions was approximately $80,000, $110,000, $425,000 and $7,209,000, respectively. Further information on the impact of these positions on the Funds’ financial statements can be found in Note 9.
C) OPTIONS CONTRACTS Certain Funds buy put options and call options and write covered call options and secured put options for hedging purposes or to earn additional income. When used as a hedge, a Fund may enter into option contracts in order to hedge against adverse price movements of securities which a Fund intends to trade upon. These options may relate to particular securities, foreign and domestic securities indices, financial instruments or foreign currencies. The gains or losses on purchased options contracts are included with Net realized and unrealized gains (losses) on investments on the Statements of Operations. The gains or losses on written options contracts are included with Net realized and unrealized gains (losses) on written options on the Statements of Operations.
The risks associated with purchasing an option include risk of loss of premium, change in fair value and counterparty non-performance under the contract. Credit risk is mitigated to the extent that the exchange on which a particular options contract is traded assumes the risk of a counterparty defaulting on its obligations under the contract. Put and call options purchased are accounted for in the same manner as Fund securities.
The cost of securities acquired through the exercise of call options is increased by the premiums paid. The proceeds from securities sold through the exercise of put options are decreased by the premiums paid.
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Table of Contents
EQUITY FUNDS
SEPTEMBER 30, 2014 (UNAUDITED) |
In writing an option, a Fund bears the market risk of an unfavorable change in the price of the security or currency underlying the written option. Exercise of an option written by a Fund could result in a Fund selling or buying a security of currency at a price different from the current fair value. No option contracts were held or written by the Funds during the six months ended September 30, 2014.
D) FOREIGN CURRENCY TRANSLATION Values of investments denominated in foreign currencies are converted into U.S. dollars using the spot rates on the NYSE, generally at 3:00 P.M. Central Time. The cost of purchases and proceeds from sales of investments, interest and dividend income are translated into U.S. dollars using the spot rates on the NYSE, generally at 3:00 P.M. Central Time. The gains or losses, if any, on investments resulting from changes in foreign exchange rates are included in the Statements of Operations in Net realized gains (losses) on investments and Net change in unrealized appreciation (depreciation) on investments. The gains or losses, if any, on translation of other assets and liabilities denominated in foreign currencies are included in Net realized gains (losses) on foreign currency transactions and Net change in unrealized appreciation (depreciation) on foreign currency translations in the Statements of Operations.
E) 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 exchange contracts are marked-to-market daily at the applicable exchange rates. Any resulting unrealized gains or losses are recorded in Net change in unrealized appreciation (depreciation) on foreign currency translations in the Statements of Operations. A Fund records realized gains or losses at the time the forward foreign currency exchange contract is offset by entering into a closing transaction with the same counterparty or is extinguished by delivery of the currency. Realized gains or losses, if any, are included in Net realized gains (losses) on foreign currency transactions in the Statements of Operations.
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. The Funds bear the market risk from changes in foreign currency exchange rates and the credit risk if the counterparty to the contract fails to perform. No forward foreign currency exchange contracts were held by the Funds during the six months ended September 30, 2014.
F) INVESTMENT TRANSACTIONS AND INCOME Investment transactions are recorded as of the trade date. The Funds determine the gain or loss realized from investment transactions by using an identified cost basis method. Interest income is recognized on an accrual basis and includes amortization of premiums and accretion of discounts using the effective yield method. The interest rates reflected in the Schedules of Investments represent either the stated coupon rate, annualized yield on date of purchase for discount notes, the current reset rate for floating rate securities, the 7-day yield for money market funds or, for interest-only or principal-only securities, the current effective yield. Cost of investments includes amortization of premiums and accretion of discounts, if any. Dividend income is recognized on the ex-dividend date. Dividends from foreign securities are recorded on the ex-dividend date, or as soon as the information is available. Distributions received from a Fund’s investments in real estate investment trusts (“REITs”) are comprised of return of capital, capital gains and income. The actual character of the amounts received during the year is not known until the fiscal year end. A Fund records the character of distributions received from the REITs during the year based on estimates available. A Fund’s characterization may be subsequently revised based on information received from the REITs after their tax reporting periods conclude.
G) EXPENSES Each Fund is charged for those expenses that are directly attributable to that Fund. Expenses incurred which do not specifically relate to an individual Fund are allocated among all Funds in the Trust in proportion to each Fund’s relative net assets.
H) REDEMPTION FEES The International Equity Fund charges a 2 percent redemption fee on the redemption of shares (including by exchange) held for 30 days or less. For the purpose of applying the fee, the Fund uses a first-in, first-out (“FIFO”) method so that shares held longest are treated as being redeemed first and shares held shortest are treated as being redeemed last. The redemption fee is paid to the Fund and is intended to offset the trading, market impact and other costs associated with short-term money movements in and out of the Fund. The redemption fee may be collected by deduction from the redemption proceeds or, if assessed after the redemption transaction, through a separate billing. The redemption fee does not apply to certain types of redemptions as described in the Fund’s prospectus.
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Redemption fees for the six months ended September 30, 2014, were less than $500 for the International Equity Fund. Redemption fees for the fiscal year ended March 31, 2014, were approximately $1,000 for the International Equity Fund. These amounts are included in “Payments for Shares Redeemed” in Note 8 — Capital Share Transactions. The impact from redemption fees paid to the Fund was less than $0.001 per share.
I) DISTRIBUTIONS TO SHAREHOLDERS Distributions of dividends from net investment income, if any, are declared and paid as follows:
DECLARATION AND PAYMENT FREQUENCY | ||||
Income Equity | Monthly | |||
International Equity | Annually | |||
Large Cap Core | Quarterly | |||
Large Cap Equity | Quarterly | |||
Large Cap Growth | Annually | |||
Large Cap Value | Annually | |||
Small Cap Core | Annually | |||
Small Cap Value | Annually | |||
Technology | Annually |
Distributions of net realized capital gains, if any, are declared and paid at least annually. Distributions to shareholders are recorded on the ex-dividend date.
Income dividends and capital gains distributions are determined in accordance with federal income tax regulations. Such amounts may differ from income and capital gains recorded in accordance with U.S. GAAP. Accordingly, the Funds may periodically make reclassifications among certain of their capital accounts to reflect differences between financial reporting and federal income tax basis distributions. These reclassifications are reported in order to reflect the tax treatment for certain permanent differences that exist between income tax regulations and U.S. GAAP. These reclassifications may relate to net operating losses, Section 988 currency gains and losses, Passive Foreign Investment Companies (“PFICs”) gains and losses, recharacterization of dividends received from investments in REITs, expired capital loss carryforwards, and gain or loss on in-kind transactions. These reclassifications have no impact on the total net assets or the net asset values per share of the Funds. At March 31, 2014, the following reclassifications were recorded:
Amounts in thousands | UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) | ACCUMULATED UNDISTRIBUTED NET REALIZED GAINS (LOSSES) | CAPITAL STOCK | |||||||||
Income Equity | $1,820 | $(1,820 | ) | $ — | ||||||||
International Equity | 176 | (2,321 | ) | 2,145 | ||||||||
Large Cap Core | (2 | ) | 2 | — | ||||||||
Large Cap Equity | — | (64 | ) | 64 | ||||||||
Large Cap Growth | 9 | (1,135 | ) | 1,126 | ||||||||
Small Cap Core | (68 | ) | 68 | — | ||||||||
Small Cap Value | (1,369 | ) | 1,369 | — | ||||||||
Technology | 496 | (496 | ) | — |
* | Amount rounds to less than one thousand. |
J) FEDERAL INCOME TAXES No provision for federal income taxes has been made since each Fund’s policy is to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute, each year, substantially all of its taxable income and capital gains to its shareholders.
For the period subsequent to October 31, 2013, through the fiscal year ended March 31, 2014, the following Funds incurred net capital losses and/or Section 988 net currency losses which each Fund intends to treat as having been incurred in the following fiscal year:
Amounts in thousands | ||||
Technology | $123 | |||
Large Cap Growth | 23 |
The Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated the eight-year limit on the use of capital loss carryforwards that arise in taxable years beginning after its enactment date of December 22, 2010. The changes became effective for the Funds for the fiscal year ended March 31, 2012. Consequently, capital losses incurred by the Funds in taxable years beginning with the taxable year ended March 31, 2012 can be carried forward for an unlimited period. However, capital losses incurred by the Funds in taxable years beginning before the taxable year ended March 31, 2012 with an expiration date may not be used to offset capital gains until all net capital losses incurred in taxable years beginning with the taxable year ended March 31, 2012 without an expiration date have been utilized. As a result, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The Funds’ ability to utilize capital loss
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carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
As of March 31, 2014, there were no post-enactment capital losses carried forward.
At March 31, 2014, the capital loss carryforwards for U.S. federal income tax purposes and their respective years of expiration were as follows:
Amounts in thousands | MARCH 31, 2016 | MARCH 31, 2017 | MARCH 31, 2018 | |||||||||
International Equity | $ | 2,292 | * | $ | 32,941 | * | $ | 151,695 | * | |||
Large Cap Core | — | 7,294 | 9,392 | |||||||||
Large Cap Equity | 2,352 | * | 17,703 | * | 13,471 | * | ||||||
Large Cap Growth | — | 583 | * | 20,105 | * | |||||||
Large Cap Value | — | 41,076 | 61,413 | |||||||||
Technology | — | — | 5,670 |
* | Amounts include acquired capital loss carryovers which may be limited under current tax laws, expiring in varying amounts through March 31, 2018. |
The Funds in the above table may offset future capital gains with these capital loss carryforwards.
At March 31, 2014, the tax components of undistributed net investment income, undistributed realized gains and unrealized gains were as follows:
UNDISTRIBUTED | ||||||||||||
Amounts in thousands | ORDINARY INCOME* | LONG-TERM CAPITAL GAINS | UNREALIZED GAINS | |||||||||
Income Equity | $6,078 | $5,215 | $90,841 | |||||||||
International Equity | 5,412 | — | 58,564 | |||||||||
Large Cap Core | 2 | — | 3,700 | |||||||||
Large Cap Equity | 25 | — | 39,775 | |||||||||
Large Cap Growth | — | 16,921 | 51,124 | |||||||||
Large Cap Value | 1,516 | — | 31,496 | |||||||||
Small Cap Core | 1,066 | 3,067 | 69,468 | |||||||||
Small Cap Value | 8,748 | 17,211 | 835,772 | |||||||||
Technology | — | — | 16,581 |
* | Ordinary income includes taxable market discount income and short-term capital gains, if any. |
The tax character of distributions paid during the fiscal year ended March 31, 2014, was as follows:
DISTRIBUTIONS FROM | ||||||||
Amounts in thousands | ORDINARY INCOME* | LONG-TERM CAPITAL GAINS | ||||||
Income Equity | $8,662 | $10,824 | ||||||
International Equity | 4,000 | 722 | ||||||
Large Cap Core | 294 | — | ||||||
Large Cap Equity | 1,508 | 28 | ||||||
Large Cap Growth | 281 | 19 | ||||||
Large Cap Value | 2,160 | — | ||||||
Small Cap Core | 1,490 | 13,000 | ||||||
Small Cap Value | 31,699 | 150,040 |
* | Ordinary income includes taxable market discount income and short-term capital gains, if any. |
The tax character of distributions paid during the fiscal year ended March 31, 2013, was as follows:
DISTRIBUTIONS FROM | ||||||||
Amounts in thousands | ORDINARY INCOME* | LONG-TERM CAPITAL GAINS | ||||||
Income Equity | $6,126 | $801 | ||||||
International Equity | 4,471 | — | ||||||
Large Cap Core | 262 | — | ||||||
Large Cap Equity | 1,853 | — | ||||||
Large Cap Growth | 400 | — | ||||||
Large Cap Value | 2,897 | — | ||||||
Small Cap Core | 2,216 | 419 | ||||||
Small Cap Value | 25,500 | 44,644 |
* | Ordinary income includes taxable market discount income and short-term capital gains, if any. |
As of March 31, 2014, no Fund had uncertain tax positions that would require financial statement recognition or disclosure. The Funds’ federal tax returns filed for the fiscal years ended March 31, 2011 through March 31, 2013 remain subject to examination by the Internal Revenue Service. Interest or penalties incurred, if any, on future unknown, uncertain tax positions taken by the Funds will be recorded as Interest expense on the Statements of Operations.
K) OTHER RISKS Certain Funds may invest in emerging market securities. Additional risks are involved when a Fund invests its assets in countries with emerging economies or securities markets. These countries generally are located in the Asia and Pacific
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regions, the Middle East, Eastern Europe, Central America, South America and Africa. Political and economic structures in many of these countries may lack the social, political and economic stability characteristics of more developed countries. In general, the securities markets of these countries are less liquid, subject to greater price volatility and have smaller market capitalizations. As a result, the risks presented by investments in these countries are heightened.
3. SERVICE PLAN
The Trust has adopted a Service Plan pursuant to which the Trust may enter into agreements with Northern Trust, its affiliates or other institutions (“Service Organizations”) under which the Service Organizations agree to provide certain administrative support services and, in some cases, personal and account maintenance services for their customers, who are beneficial owners of shares of the Funds. As compensation for services provided pursuant to the Service Plan, the Service Organizations receive a fee at an annual rate of up to 0.25 percent of the average daily net assets of the Funds beneficially owned by their customers. There were no shareholder servicing fees paid to Northern Trust or its affiliates during the six months ended September 30, 2014.
These expenses are included in the Statements of Operations under Shareholder servicing fees for the six months ended September 30, 2014.
4. BANK BORROWINGS
The Trust entered into a $150,000,000 senior unsecured revolving credit facility on November 25, 2013, which is administered by JPMorgan Chase Bank, N.A., for liquidity and other purposes (the “Credit Facility”). The interest rate charged under the Credit Facility is equal to the sum of (i) the Federal Funds Rate plus (ii) if the one month London Interbank Offered Rate (“LIBOR”) on the date of borrowing exceeds such Federal Funds Rate, the amount by which it so exceeds, plus (iii) 1.00 percent. In addition, there is an annual commitment fee of 0.07 percent on the unused portion of the credit line under the Credit Facility, payable quarterly in arrears, which is included in Other expenses on the Statements of Operations.
At a meeting held on November 20, 2014, the Board approved an agreement that terminated, replaced and restated the Credit Facility (as so terminated, replaced and restated, the “New Credit Facility”). The New Credit Facility is in the amount of $250,000,000. The interest rate charged under the New Credit Facility is the same as it was for the Credit Facility. In addition, there is an annual commitment fee of 0.08 percent on the unused portion of the credit line under the New Credit Facility, payable quarterly in arrears. The New Credit Facility is anticipated to go into effect on November 24, 2014 and will expire on November 23, 2015, unless renewed.
At September 30, 2014, the Funds did not have any outstanding loans.
When utilized, the average dollar amounts of the borrowings and the weighted average interest rates for the six months ended September 30, 2014, on these borrowings were:
Amounts in thousands | DOLLAR AMOUNT | RATE | ||||||
International Equity | $150 | 1.15 | % | |||||
Large Cap Growth | 650 | 1.15 | % |
No other Funds incurred any interest expenses during the six months ended September 30, 2014.
5. MANAGEMENT AND OTHER AGREEMENTS
Shareholders of each Fund have approved a new management agreement, effective June 30, 2014, between the Fund and NTI (the “Management Agreement”), to provide the Fund with investment advisory and administration services under a single agreement and fee structure. As compensation for advisory and administration services and the assumption of related expenses, NTI is entitled to a management fee, computed daily and payable monthly, at annual rates set forth in the first table below (expressed as a percentage of each Fund’s respective average daily net assets). Prior to June 30, 2014, as compensation for advisory services and the assumption of related expenses, NTI was entitled to an advisory fee, computed daily and payable monthly, at annual rates set forth in the second table below (expressed as a percentage of each Fund’s respective average daily net assets.) Prior to June 30, 2014, NTI, as administrator, was also entitled to an administration fee from the Funds at the annual rate of 0.15% of the average daily net assets of each Fund.
NTI has contractually agreed to reimburse a portion of the operating expenses of each Fund (other than acquired fund fees and expenses, the Fund’s proportionate share of the increase in compensation paid to each disinterested Trustee, expenses related to third-party consultants engaged by the Board of Trustees of the Trust, membership dues paid to the Investment Company Institute and Mutual Fund Directors Forum, and extraordinary expenses and interest) as shown on the accompanying Statements of Operations, to adhere to the expense limitations set forth below. The amount of the reimbursement is included in Less expenses reimbursed by investment adviser as a reduction to Total Expenses in the Statements of Operations.
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At September 30, 2014, the annual management fees and contractual expense limitations for the Funds were based on the following annual rates as set forth in the tables below.
CONTRACTUAL | ||||||||
Fund | ANNUAL MANAGEMENT FEES | EXPENSE LIMITATIONS | ||||||
Large Cap Core | 0.44% | 0.60% | ||||||
Small Cap Core | 0.74% | 0.75% | ||||||
Small Cap Value | 0.95% | 1.00% |
CONTRACTUAL ANNUAL MANAGEMENT FEES | CONTRACTUAL EXPENSE | |||||||||||||||
Fund | FIRST $1 BILLION | NEXT $1 BILLION | OVER $2 BILLION | |||||||||||||
Income Equity | 0.95% | 0.922% | 0.894% | 1.00% | ||||||||||||
International Equity | 1.00% | 0.97% | 0.941% | 1.06% | ||||||||||||
Large Cap Equity | 0.83% | 0.805% | 0.781% | 0.85% | ||||||||||||
Large Cap Growth | 0.83% | 0.805% | 0.781% | 0.85% | ||||||||||||
Large Cap Value | 0.83% | 0.805% | 0.781% | 0.85% | ||||||||||||
Technology | 1.10% | 1.067% | 1.035% | 1.25% |
Prior to June 30, 2014, the annual advisory fees for the Funds were based on the following annual rates as set forth in the table below. There was no change to the contractual expense limitations described above.
Fund | CONTRACTUAL ANNUAL ADVISORY FEES | |||
Large Cap Core | 0.30% | |||
Small Cap Core | 0.85% | |||
Small Cap Value | 0.85% |
CONTRACTUAL ANNUAL ADVISORY FEES | ||||||||||||
Fund | FIRST $1 BILLION | NEXT $1 BILLION | OVER $2 BILLION | |||||||||
Income Equity | 0.85% | 0.80% | 0.77% | |||||||||
International Equity | 0.90% | 0.85% | 0.81% | |||||||||
Large Cap Equity | 0.75% | 0.71% | 0.68% | |||||||||
Large Cap Growth | 0.75% | 0.71% | 0.68% | |||||||||
Large Cap Value | 0.85% | 0.80% | 0.77% | |||||||||
Technology | 1.00% | 0.94% | 0.90% |
The contractual reimbursement arrangements are expected to continue until at least July 31, 2015. The contractual reimbursement arrangements will continue automatically for periods of one year (each such one year period, a “Renewal Year”). The arrangement may be terminated, as to any succeeding Renewal Year, by NTI or a Fund upon 60 days’ written notice prior to the end of the current Renewal Year. The Board may terminate the contractual arrangements at any time with respect to a Fund if it determines that it is in the best interest of the Fund and its shareholders.
Effective June 30, 2014, as compensation for services rendered as transfer agent, including the assumption by Northern Trust of the expenses related thereto, Northern Trust receives a fee, computed daily and payable monthly, at an annual rate of 0.015 percent of the average daily net assets outstanding for each of the Funds. Prior to June 30, 2014, Northern Trust received transfer agent fees at an annual rate of 0.10 percent of the average daily net assets, accrued daily and payable monthly. The transfer agent fees are reflected in the Funds’ Statements of Operations.
NTI has a sub-administration agreement with Northern Trust, pursuant to which Northern Trust performs certain administrative services for the Funds. NTI pays Northern Trust for its sub-administration services out of NTI’s management fees. Prior to June 30, 2014, these sub-administration services were paid out of NTI’s administration fees.
For compensation as custodian, Northern Trust receives an amount based on a pre-determined schedule of charges approved by the Board. The Funds have entered into an expense off-set arrangement with the custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Funds’ custodian expenses. Custodian credits, if any, are reflected as Less custodian credits in the Funds’ Statements of Operations.
Northern Funds Distributors, LLC, the distributor for the Funds, received no compensation from the Funds under its distribution agreement. However, it received compensation from NTI for its services as distributor pursuant to a separate letter agreement between it and NTI.
Certain officers of the Trust are also officers of Northern Trust and NTI. All officers serve without compensation from the Funds. The Trust provided a deferred compensation plan for its Trustees who are not officers of Northern Trust or NTI. Prior to August 22, 2013, under the deferred compensation plan, Trustees may have elected to defer all or a portion of their compensation. Effective August 22, 2013, the Trustees may no longer defer their compensation. Any amounts deferred and invested under the plan shall remain invested pursuant to the terms of the plan. Each Trustee’s account shall be deemed to be invested in shares of the Diversified Assets Portfolio of Northern Institutional Funds and/or the Global Tactical Asset Allocation Fund of the Trust and/or at the discretion of the Trust, another money
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market fund selected by the Trust that complies with the provisions of Rule 2a-7 under the 1940 Act or one or more short-term fixed-income instruments selected by the Trust that are “eligible securities” as defined by that rule. The net investment income, gains and losses achieved by such deemed investment shall be credited to the Trustee’s account as provided in the plan.
6. RELATED PARTY TRANSACTIONS
Pursuant to an exemptive order issued by the Securities and Exchange Commission (“SEC”), each Fund invests its uninvested cash in a money market fund advised by NTI or its affiliates. Accordingly, each Fund will bear indirectly a proportionate share of that money market fund’s operating expenses. These operating expenses include the management, transfer agency and custody fees that the money market fund pays to NTI and/or its affiliates. The uninvested cash of each of the Funds currently is invested in the Diversified Assets Portfolio of Northern Institutional Funds. The aggregate annual rate of management, transfer agency and custody fees payable to NTI and/or its affiliates on any assets invested in the Diversified Assets Portfolio is 0.35 percent of the average daily net assets. However, pursuant to the exemptive order, NTI will reimburse each Fund for advisory fees otherwise payable by the Fund on any assets invested in the Diversified Assets Portfolio. This reimbursement is included in Less expenses reimbursed by investment adviser as a reduction to Total Expenses on the Statements of Operations. This reimbursement’s impact on each Fund’s net expenses and net investment income ratios is included in each Fund’s Financial Highlights. The exemptive order requires the Funds’ Board to determine before a vote on the Management Agreement that the advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds are not for duplicative services.
7. INVESTMENT TRANSACTIONS
For the six months ended September 30, 2014, the aggregate costs of purchases and proceeds from sales of securities (excluding short-term investments) for the Funds were as follows:
PURCHASES | SALES | |||||||||||||||
Amounts in thousands | U.S. GOVERNMENT | OTHER | U.S. GOVERNMENT | OTHER | ||||||||||||
Income Equity | $ — | $337,468 | $ — | $377,144 | ||||||||||||
International Equity | — | 15,975 | — | 8,617 | ||||||||||||
Large Cap Core | — | 7,570 | — | 5,348 | ||||||||||||
Large Cap Equity | — | 10,360 | — | 17,764 | ||||||||||||
Large Cap Growth | — | 37,455 | — | 93,208 | ||||||||||||
Large Cap Value | — | 82,553 | — | 86,799 | ||||||||||||
Small Cap Core | — | 12,058 | — | 14,215 | ||||||||||||
Small Cap Value | — | 304,072 | — | 283,534 | ||||||||||||
Technology | — | 11,580 | — | 18,500 |
The difference between book basis and tax basis net unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales, deferral of post-October currency and capital losses for tax purposes, and the recharacterization of income recognition on investments in REIT’s and PFIC’s.
At September 30, 2014, for federal income 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:
Amounts in thousands | UNREALIZED APPRECIATION | UNREALIZED DEPRECIATION | NET APPRECIATION | COST BASIS OF SECURITIES | ||||||||||||
Income Equity | $25,085 | $(4,810 | ) | $20,275 | $329,277 | |||||||||||
International Equity | 56,319 | (11,078 | ) | 45,241 | 201,857 | |||||||||||
Large Cap Core | 4,412 | (156 | ) | 4,256 | 26,094 | |||||||||||
Large Cap Equity | 44,401 | (1,183 | ) | 43,218 | 102,567 | |||||||||||
Large Cap Growth | 29,303 | (1,606 | ) | 27,697 | 72,262 | |||||||||||
Large Cap Value | 10,937 | (2,585 | ) | 8,352 | 98,580 | |||||||||||
Small Cap Core | 58,405 | (4,743 | ) | 53,662 | 128,919 | |||||||||||
Small Cap Value | 621,443 | (25,464 | ) | 595,979 | 1,895,120 | |||||||||||
Technology | 18,515 | (1,429 | ) | 17,086 | 60,322 |
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8. CAPITAL SHARE TRANSACTIONS
Transactions in capital shares for the six months ended September 30, 2014, were as follows:
Amounts in thousands | SHARES SOLD | PROCEEDS FROM SHARES SOLD | SHARES FROM REINVESTED DIVIDENDS | REINVESTMENT OF DIVIDENDS | SHARES REDEEMED | PAYMENTS FOR SHARES REDEEMED | NET INCREASE (DECREASE) IN SHARES | NET INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
Income Equity | 1,568 | $25,074 | 312 | $5,030 | (4,149 | ) | $(66,929 | ) | (2,269 | ) | $(36,825 | ) | ||||||||||||||||||||
International Equity | 2,161 | 22,151 | — | — | (1,355 | ) | (13,824 | ) | 806 | 8,327 | ||||||||||||||||||||||
Large Cap Core | 545 | 7,867 | 5 | 81 | (304 | ) | (4,375 | ) | 246 | 3,573 | ||||||||||||||||||||||
Large Cap Equity | 119 | 2,466 | 22 | 456 | (471 | ) | (9,780 | ) | (330 | ) | (6,858 | ) | ||||||||||||||||||||
Large Cap Growth | 68 | 2,221 | — | — | (1,878 | ) | (58,572 | ) | (1,810 | ) | (56,351 | ) | ||||||||||||||||||||
Large Cap Value | 243 | 3,282 | — | — | (737 | ) | (9,878 | ) | (494 | ) | (6,596 | ) | ||||||||||||||||||||
Small Cap Core | 816 | 17,023 | — | — | (756 | ) | (15,813 | ) | 60 | 1,210 | ||||||||||||||||||||||
Small Cap Value | 13,148 | 275,472 | — | — | (14,024 | ) | (294,511 | ) | (876 | ) | (19,039 | ) | ||||||||||||||||||||
Technology | 143 | 2,994 | — | — | (447 | ) | (9,140 | ) | (304 | ) | (6,146 | ) |
Transactions in capital shares for the fiscal year ended March 31, 2014, were as follows:
Amounts in thousands | SHARES SOLD | PROCEEDS FROM SHARES SOLD | SHARES FROM REINVESTED DIVIDENDS | REINVESTMENT OF DIVIDENDS | SHARES REDEEMED | PAYMENTS FOR SHARES REDEEMED | NET INCREASE (DECREASE) IN SHARES | NET INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
Income Equity | 5,047 | $76,672 | 1,002 | $15,315 | (6,184 | ) | $(94,095 | ) | (135 | ) | $(2,108 | ) | ||||||||||||||||||||
International Equity | 5,056 | 48,277 | 175 | 1,701 | (10,503 | ) | (99,582 | ) | (5,272 | ) | (49,604 | ) | ||||||||||||||||||||
Large Cap Core | 928 | 11,982 | 11 | 128 | (226 | ) | (2,813 | ) | 713 | 9,297 | ||||||||||||||||||||||
Large Cap Equity | 295 | 5,420 | 53 | 986 | (1,942 | ) | (35,442 | ) | (1,594 | ) | (29,036 | ) | ||||||||||||||||||||
Large Cap Growth | 250 | 7,248 | 9 | 263 | (2,936 | ) | (84,717 | ) | (2,677 | ) | (77,206 | ) | ||||||||||||||||||||
Large Cap Value | 1,449 | 16,891 | 127 | 1,600 | (3,144 | ) | (37,102 | ) | (1,568 | ) | (18,611 | ) | ||||||||||||||||||||
Small Cap Core | 1,464 | 29,371 | 639 | 12,973 | (4,734 | ) | (96,605 | ) | (2,631 | ) | (54,261 | ) | ||||||||||||||||||||
Small Cap Value | 31,376 | 621,784 | 8,374 | 169,160 | (27,437 | ) | (551,564 | ) | 12,313 | 239,380 | ||||||||||||||||||||||
Technology | 241 | 4,603 | — | — | (924 | ) | (16,958 | ) | (683 | ) | (12,355 | ) |
9. DERIVATIVE INSTRUMENTS
None of the derivatives held in the Funds have been designated as hedging instruments. Information concerning the types of derivatives in which the Funds invest, the objectives for using them and their related risks can be found in Note 2.
Below are the types of derivatives by primary risk exposure as presented in the Statements of Assets and Liabilities as of September 30, 2014:
Amounts in thousands | ASSETS | LIABILITIES | ||||||||||||||
FUND NAME | DERIVATIVE TYPE | STATEMENT OF ASSETS AND LIABILITIES LOCATION | VALUE | STATEMENT OF ASSETS AND LIABILITIES LOCATION | VALUE | COUNTERPARTY | ||||||||||
Large Cap Core | Equity contracts | Net Assets — Unrealized appreciation | $ — | Net Assets — Unrealized depreciation | $14 | * | Citigroup | |||||||||
Large Cap Value | Equity contracts | Net Assets — Unrealized appreciation | — | Net Assets — Unrealized depreciation | 24 | * | UBS | |||||||||
Small Cap Core | Equity contracts | Net Assets — Unrealized appreciation | — | Net Assets — Unrealized depreciation | 341 | * | UBS | |||||||||
Small Cap Value | Equity contracts | Net Assets — Unrealized appreciation | — | Net Assets — Unrealized depreciation | 3,677 | * | Citigroup |
* | Includes cumulative appreciation/depreciation on futures contracts as reported in the Schedule of Investments footnotes. Only the current day’s variation margin is reported within the Statements of Assets and Liabilities. |
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EQUITY FUNDS
NOTES TO THE FINANCIAL STATEMENTS continued
The following tables set forth by primary risk exposure the Funds’ realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the six months ended September 30, 2014:
Amounts in thousands | AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVE CONTRACTS | |||||||
FUND NAME | DERIVATIVE TYPE | STATEMENT OF OPERATIONS LOCATION | VALUE | |||||
Large Cap Core | Equity contracts | Net realized gains (losses) on futures contracts | $62 | |||||
Large Cap Value | Equity contracts | Net realized gains (losses) on futures contracts | (5 | ) | ||||
Small Cap Core | Equity contracts | Net realized gains (losses) on futures contracts | 25 | |||||
Small Cap Value | Equity contracts | Net realized gains (losses) on futures contracts | 330 |
Amounts in thousands | CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVE CONTRACTS | |||||||
FUND NAME | DERIVATIVE TYPE | STATEMENT OF OPERATIONS LOCATION | VALUE | |||||
Large Cap Core | Equity contracts | Net change in unrealized appreciation (depreciation) on futures contracts | $(20 | ) | ||||
Large Cap Value | Equity contracts | Net change in unrealized appreciation (depreciation) on futures contracts | (24 | ) | ||||
Small Cap Core | Equity contracts | Net change in unrealized appreciation (depreciation) on futures contracts | (328 | ) | ||||
Small Cap Value | Equity contracts | Net change in unrealized appreciation (depreciation) on futures contracts | (3,237 | ) |
Volume of derivative activity for the six months ended September 30, 2014*:
FUTURES EQUITY | ||||||||
CONTRACTS | ||||||||
NUMBER OF TRADES | AVERAGE NOTIONAL AMOUNT** | |||||||
Large Cap Core | 38 | $160 | ||||||
Large Cap Value | 4 | 1,016 | ||||||
Small Cap Core | 26 | 925 | ||||||
Small Cap Value | 72 | 3,935 |
* | Activity during the period is measured by number of trades during the period and average notional amount for futures equity contracts. |
** | Amounts in thousands. |
10. INDEMNIFICATIONS AND WARRANTIES
In the ordinary course of their business, the Funds may enter into contracts or agreements that contain indemnifications or warranties. Future events could occur that lead to the execution of these provisions against the Funds. The maximum exposure to the Funds under these provisions is unknown, as this would involve future claims that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and believe the risk of loss to be remote.
11. LEGAL PROCEEDINGS
In 2007, the Large Cap Core Fund and the Large Cap Value Fund were shareholders of the Tribune Company (“Tribune”). In December of 2007, as a part of a leveraged buy-out transaction (the “LBO”), Tribune was converted from a public company to a privately-held company. Tribune later filed for bankruptcy.
On December 7, 2010, Northern Funds was named as a defendant and a putative member of the proposed defendant class of shareholders named in an adversary proceeding (the “Committee Action”) brought by The Official Committee of Unsecured Creditors of Tribune Company (the “Committee”) in the U.S. Bankruptcy Court for the District of Delaware, in connection with Tribune’s bankruptcy proceeding. On June 2, 2011, a second suit was initiated by certain creditors of Tribune in the Delaware Superior Court with respect to claims related to the LBO (Niese et al. v. A.G. Edwards, Inc. et al.), in which Northern Funds was named as a defendant. The indenture trustees, on behalf of certain noteholders of Tribune, filed a third suit and named Northern Funds as a defendant on June 2, 2011 in the U.S. District Court for the Northern District of Illinois (Deutsche Bank Trust Co. et al. v. Ohlson Enterprises et al.). Each of these cases has now been consolidated into a Multi-District Litigation proceeding, pending in the Southern District of New York. The cases attempt to “clawback” the proceeds paid out in connection with the LBO.
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EQUITY FUNDS
SEPTEMBER 30, 2014 (UNAUDITED) |
The defendants have jointly moved to dismiss all of the actions filed by the individual creditors in the Niese and Deutsche Bank cases. The Committee Action was not subject to the motion to dismiss. On September 23, 2013, the District Court dismissed the individual creditors’ actions. The individual creditors filed a notice of appeal of the Court’s decision on September 30, 2013. The appeal is currently pending before the United States Court of Appeals for the Second Circuit.
The value of the proceeds received by the Large Cap Core Fund and the Large Cap Value Fund in the LBO was approximately $308,000 and $26,520,000, respectively. The Funds cannot predict the outcome of these proceedings, but an adverse decision could have a material impact on the Funds’ net asset value. The Funds intend to vigorously defend these actions.
12. REORGANIZATION
On August 21, 2014, the Board of Trustees of the Trust approved the reorganization of Northern Large Cap Growth Fund (the “Acquired Fund”) into Northern Large Cap Core Fund (the “Acquiring Fund”). It is anticipated that the reorganization will be completed on or about December 5, 2014. The reorganization will be effected pursuant to a Plan of Reorganization (the “Plan”). In the reorganization, all of the assets of the Acquired Fund will be transferred to the Acquiring Fund, in exchange for shares of the Acquiring Fund of equal aggregate value and the Acquiring Fund’s assumption of all of the liabilities of the Acquired Fund. The shares of the Acquiring Fund then will be distributed to the shareholders of the Acquired Fund in complete liquidation of the Acquired Fund. Holders of shares of the Acquired Fund will hold, immediately after the reorganization, shares of the Acquiring Fund having an aggregate net asset value equal to the aggregate net asset value of the shares the shareholder held in the Acquired Fund immediately prior to the reorganization. It is currently anticipated that the reorganization of the Acquired Fund should be effected on a tax-free basis for federal income tax purposes.
13. SUBSEQUENT EVENTS
Management has evaluated subsequent events for the Funds through the date the financial statements were issued, and has concluded that there are no recognized or non-recognized subsequent events relevant for financial statement disclosure.
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EQUITY FUNDS
SEPTEMBER 30, 2014 (UNAUDITED) |
At a reconvened Special Joint Meeting of Shareholders of Northern Funds, including the Northern Multi-Manager Funds, and Northern Institutional Funds held on June 23, 2014, at the office of Northern Trust Investments, Inc., 50 South LaSalle Street, Chicago, Illinois, the following matter was voted upon by the shareholders of Northern Funds (the resulting votes are presented below):
To approve a new management agreement, included with the Proxy Statement for the Meeting, between the Fund and its investment adviser, to provide the Fund with investment advisory and administration services under a single agreement and fee structure.
FUND | FOR | AGAINST | ABSTAIN | BROKER NON-VOTE | ||||||||||||
Large Cap Value Fund | 4,310,029 | 105,721 | 232,240 | 1,798,731 | ||||||||||||
Small Cap Value Fund | 55,180,276 | 647,588 | 974,047 | 25,104,785 | ||||||||||||
Technology Fund | 1,522,610 | 61,584 | 70,994 | 596,282 |
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EQUITY FUNDS
SEPTEMBER 30, 2014 (UNAUDITED) |
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, if any, including redemption fees on certain exchanges and redemptions in the International Equity Fund; and (2) ongoing costs, including advisory fees and other fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, April 1, 2014 through September 30, 2014.
ACTUAL EXPENSES
The first line of the tables below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid 4/1/14 - 9/30/14” to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the tables below provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5 percent per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5 percent hypothetical example with the 5 percent hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads), redemption fees, or exchange fees or other costs such as advisory fees related to affiliated money market fund investments, but shareholders of other funds may incur such costs. For example, the information does not reflect redemption fees (as described on page 69 and 70), if any, in the International Equity Fund. If these fees were included, your costs would have been higher. The information also does not reflect reimbursements on advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds (as described on page 74), which may result in different expense ratios in the Financial Highlights.
Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
INCOME EQUITY
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/14 | ENDING ACCOUNT VALUE 9/30/14 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 1.00 | % | $ | 1,000.00 | $ | 1,030.20 | $ | 5.09 | ||||||||
Hypothetical** | 1.00 | % | $ | 1,000.00 | $ | 1,020.05 | $ | 5.06 |
INTERNATIONAL EQUITY
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/14 | ENDING ACCOUNT VALUE 9/30/14 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 1.07 | % | $ | 1,000.00 | $ | 968.10 | $ | 5.28 | ||||||||
Hypothetical** | 1.07 | % | $ | 1,000.00 | $ | 1,019.70 | $ | 5.42 |
LARGE CAP CORE
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/14 | ENDING ACCOUNT VALUE 9/30/14 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.63 | % | $ | 1,000.00 | $ | 1,060.10 | $ | 3.25 | ||||||||
Hypothetical** | 0.63 | % | $ | 1,000.00 | $ | 1,021.91 | $ | 3.19 |
LARGE CAP EQUITY
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/14 | ENDING ACCOUNT VALUE 9/30/14 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.86 | % | $ | 1,000.00 | $ | 1,048.80 | $ | 4.42 | ||||||||
Hypothetical** | 0.86 | % | $ | 1,000.00 | $ | 1,020.76 | $ | 4.36 |
LARGE CAP GROWTH
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/14 | ENDING ACCOUNT VALUE 9/30/14 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.86 | % | $ | 1,000.00 | $ | 1,045.60 | $ | 4.41 | ||||||||
Hypothetical** | 0.86 | % | $ | 1,000.00 | $ | 1,020.76 | $ | 4.36 |
* | Expenses are calculated using the Funds’ annualized expense ratios, which represent ongoing expenses as a percentage of net assets for the six months ended September 30, 2014. Expenses are calculated by multiplying the annualized expense ratio by the average account value of the period; then multiplying the result by the number of days in the most recent fiscal half year (183); and then dividing that result by the number of days in the current fiscal year (365). |
** | Hypothetical expenses are based on the Funds’ actual annualized expense ratios and an assumed rate of return of 5 percent per year before expenses. |
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EQUITY FUNDS
FUND EXPENSES continued | SEPTEMBER 30, 2014��(UNAUDITED) |
LARGE CAP VALUE
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/14 | ENDING ACCOUNT VALUE 9/30/14 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.86 | % | $ | 1,000.00 | $ | 1,044.60 | $ | 4.41 | ||||||||
Hypothetical** | 0.86 | % | $ | 1,000.00 | $ | 1,020.76 | $ | 4.36 |
SMALL CAP CORE
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/14 | ENDING ACCOUNT VALUE 9/30/14 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.76 | % | $ | 1,000.00 | $ | 959.40 | $ | 3.73 | ||||||||
Hypothetical** | 0.76 | % | $ | 1,000.00 | $ | 1,021.26 | $ | 3.85 |
SMALL CAP VALUE
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/14 | ENDING ACCOUNT VALUE 9/30/14 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 1.00 | % | $ | 1,000.00 | $ | 950.80 | $ | 4.89 | ||||||||
Hypothetical** | 1.00 | % | $ | 1,000.00 | $ | 1,020.05 | $ | 5.06 |
TECHNOLOGY
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/14 | ENDING ACCOUNT VALUE 9/30/14 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 1.26 | % | $ | 1,000.00 | $ | 1,038.50 | $ | 6.44 | ||||||||
Hypothetical** | 1.26 | % | $ | 1,000.00 | $ | 1,018.75 | $ | 6.38 |
* | Expenses are calculated using the Funds’ annualized expense ratios, which represent ongoing expenses as a percentage of net assets for the six months ended September 30, 2014. Expenses are calculated by multiplying the annualized expense ratio by the average account value of the period; then multiplying the result by the number of days in the most recent fiscal half year (183); and then dividing that result by the number of days in the current fiscal year (365). |
** | Hypothetical expenses are based on the Funds’ actual annualized expense ratios and an assumed rate of return of 5 percent per year before expenses. |
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EQUITY FUNDS
PORTFOLIO HOLDINGS
Northern Funds files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s Web site at sec.gov. You may also review and obtain copies at the SEC’s Public Reference Room in Washington, D.C. Information about the Public Reference Room may be obtained by calling 800-SEC-0330.
PROXY VOTING
Northern Funds’ Proxy Voting Policies and Procedures and each Fund’s portfolio securities voting record for the 12-month period ended June 30 are available upon request and without charge by visiting Northern Funds’ Web site at northernfunds.com or the SEC’s Web site at sec.gov or by calling the Northern Funds Center at 800-595-9111.
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EQUITY INDEX FUNDS
2 | ||||
4 | ||||
6 | ||||
8 | ||||
15 | ||||
15 | ||||
30 | ||||
40 | ||||
53 | ||||
67 | ||||
74 | ||||
100 | ||||
108 | ||||
122 | ||||
124 |
The 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.
The recent volatility in the stock market has produced short-term returns that are not typical and may not continue in the future. Because of ongoing market volatility, Northern Funds’ performance may be subject to substantial short-term changes.
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 forward-looking 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.
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 SEMIANNUAL REPORT | 1 | EQUITY INDEX FUNDS |
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EQUITY INDEX FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
Amounts in thousands, except per share data | EMERGING MARKETS INDEX FUND | GLOBAL REAL ESTATE INDEX FUND | ||||||
ASSETS: | ||||||||
Investments, at cost | $1,629,535 | (1) | $1,280,839 | (1) | ||||
Investments, at value | $1,935,113 | (3) | $1,514,261 | (3) | ||||
Cash held at broker | 4,528 | (5) | 638 | (5) | ||||
Foreign currencies held at broker, at value (restricted $500, $814, $74, $3,896, respectively) | 500 | (6) | 2,910 | (6) | ||||
Foreign currencies, at value (cost $26,342, $9,095, $2,163, $28,143, respectively) | 25,789 | 9,030 | ||||||
Dividend income receivable | 2,031 | 3,878 | ||||||
Interest income receivable | – | – | ||||||
Receivable for foreign tax reclaimable | 273 | 570 | ||||||
Receivable for securities sold | 2,707 | 5 | ||||||
Receivable for variation margin on futures contracts | 31 | 28 | ||||||
Receivable for fund shares sold | 498 | 2,343 | ||||||
Receivable from investment adviser | 13 | 6 | ||||||
Unrealized gain on foreign currency exchange contracts | 4 | 140 | ||||||
Prepaid and other assets | 25 | 21 | ||||||
Total Assets | 1,971,512 | 1,533,830 | ||||||
LIABILITIES: | ||||||||
Unrealized loss on foreign currency exchange contracts | 97 | 305 | ||||||
Payable for securities purchased | 3,533 | 595 | ||||||
Payable for variation margin on futures contracts | 196 | 224 | ||||||
Payable for fund shares redeemed | 1,821 | 777 | ||||||
Payable to affiliates: | ||||||||
Management fees (Note 5) | 69 | 101 | ||||||
Custody and accounting fees | 33 | 26 | ||||||
Shareholder servicing fees | — | 6 | ||||||
Transfer agent fees | 5 | 4 | ||||||
Trustee fees | 14 | 9 | ||||||
Accrued other liabilities | 49 | 39 | ||||||
Total Liabilities | 5,817 | 2,086 | ||||||
Net Assets | $1,965,695 | $1,531,744 | ||||||
ANALYSIS OF NET ASSETS: | ||||||||
Capital stock | $1,899,304 | $2,003,228 | ||||||
Accumulated undistributed net investment income (loss) | 25,744 | (24,890 | ) | |||||
Accumulated undistributed net realized gain (loss) | (262,295 | ) | (678,897 | ) | ||||
Net unrealized appreciation | 302,942 | 232,303 | ||||||
Net Assets | $1,965,695 | $1,531,744 | ||||||
Shares Outstanding ($.0001 par value, unlimited authorization) | 171,392 | 161,220 | ||||||
Net Asset Value, Redemption and Offering Price Per Share | $11.47 | $9.50 |
(1) | Amounts include cost from the Diversified Assets Portfolio of the Northern Institutional Funds of $15,524, $13,336, $4,692, $32,179, $53,690, $15,544 and $178,498, respectively. |
(2) | Amounts include cost from the Northern Trust Corp. of $131 and $3,766, respectively. |
(3) | Amounts include value from the Diversified Assets Portfolio of the Northern Institutional Funds of $15,524, $13,336, $4,692, $32,179, $53,690, $15,544 and $178,498, respectively. |
(4) | Amounts include value from the Northern Trust Corp. of $163 and $4,839, respectively. |
(5) | The restricted cash amounts for each international fund are $1,674, $638, $106 and $0, respectively. (6) Costs associated with foreign currencies held at broker are $554, $3,039, $159 and $4,145, respectively. |
See Notes to the Financial Statements.
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SEPTEMBER 30, 2014 (UNAUDITED) |
GLOBAL SUSTAINABILITY INDEX FUND | INTERNATIONAL EQUITY INDEX FUND | MID CAP INDEX FUND | SMALL CAP INDEX FUND | STOCK INDEX FUND | ||||||||||||||
$147,711 | (1)(2) | $4,217,942 | (1) | $1,041,928 | (1) | $693,880 | (1) | $3,612,558 | (1)(2) | |||||||||
$195,595 | (3)(4) | $4,788,657 | (3) | $1,375,445 | (3) | $901,466 | (3) | $5,987,421 | (3)(4) | |||||||||
219 | (5) | 52 | (5) | – | – | – | ||||||||||||
154 | (6) | 3,979 | (6) | – | – | – | ||||||||||||
2,124 | 28,729 | – | – | – | ||||||||||||||
375 | 12,663 | 1,134 | 958 | 6,858 | ||||||||||||||
1 | – | – | – | – | ||||||||||||||
151 | 6,570 | – | – | – | ||||||||||||||
337 | 52,766 | 941 | 10,865 | – | ||||||||||||||
30 | 421 | 28 | 6 | – | ||||||||||||||
12 | 9,648 | 789 | 629 | 6,636 | ||||||||||||||
2 | 35 | 6 | 5 | 13 | ||||||||||||||
– | 4 | – | – | – | ||||||||||||||
3 | 22 | 7 | 10 | 44 | ||||||||||||||
199,003 | 4,903,546 | 1,378,350 | 913,939 | 6,000,972 | ||||||||||||||
13 | 408 | – | – | – | ||||||||||||||
4,224 | 66,758 | 34,181 | 6,283 | – | ||||||||||||||
25 | 173 | 272 | 318 | 407 | ||||||||||||||
51 | 1,746 | 967 | 1,120 | 3,400 | ||||||||||||||
6 | 144 | 29 | 20 | 80 | ||||||||||||||
6 | 75 | 15 | 15 | 38 | ||||||||||||||
4 | 13 | 36 | 19 | 13 | ||||||||||||||
– | 12 | 3 | 2 | 15 | ||||||||||||||
4 | 25 | 6 | 10 | 30 | ||||||||||||||
21 | 122 | 37 | 22 | 83 | ||||||||||||||
4,354 | 69,476 | 35,546 | 7,809 | 4,066 | ||||||||||||||
$194,649 | $4,834,070 | $1,342,804 | $906,130 | $5,996,906 | ||||||||||||||
$144,751 | $4,539,584 | $951,528 | $656,746 | $3,666,123 | ||||||||||||||
3,830 | 132,916 | 12,563 | 7,881 | 3,611 | ||||||||||||||
(1,738 | ) | (407,960 | ) | 46,079 | 34,809 | (45,698 | ) | |||||||||||
47,806 | 569,530 | 332,634 | 206,694 | 2,372,870 | ||||||||||||||
$194,649 | $4,834,070 | $1,342,804 | $906,130 | $5,996,906 | ||||||||||||||
16,023 | 398,695 | 77,116 | 77,487 | 245,557 | ||||||||||||||
$12.15 | $12.13 | $17.41 | $11.69 | $24.42 |
See Notes to the Financial Statements.
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EQUITY INDEX FUNDS
STATEMENTS OF OPERATIONS
Amounts in thousands | EMERGING MARKETS INDEX FUND | GLOBAL REAL ESTATE INDEX FUND | ||||||
INVESTMENT INCOME: | ||||||||
Dividend income | $35,596 | (1)(2) | $30,105 | (1)(3) | ||||
Interest income | 38 | 31 | ||||||
Total Investment Income | 35,634 | 30,136 | ||||||
EXPENSES: | ||||||||
Management fees (Note 5) | 1,106 | 1,580 | ||||||
Investment advisory fees (Note 5) | 1,704 | 1,243 | ||||||
Administration fees (Note 5) | 730 | 533 | ||||||
Custody fees | 930 | 693 | ||||||
Accounting fees | 54 | 40 | ||||||
Transfer agent fees | 566 | 414 | ||||||
Registration fees | 19 | 17 | ||||||
Printing fees | 18 | 14 | ||||||
Professional fees | 28 | 23 | ||||||
Shareholder servicing fees | 60 | 59 | ||||||
Trustee fees | 26 | 18 | ||||||
Interest expense | — | 1 | ||||||
Other | 25 | 11 | ||||||
Total Expenses | 5,266 | 4,646 | ||||||
Less expenses reimbursed by investment adviser | (2,212 | ) | (885 | ) | ||||
Net Expenses | 3,054 | 3,761 | ||||||
Net Investment Income | 32,580 | 26,375 | ||||||
NET REALIZED AND UNREALIZED GAINS (LOSSES): | ||||||||
Net realized gains (losses) on: | ||||||||
Investments | (11,179 | ) | (2,392 | ) | ||||
Futures contracts | 4,931 | 2,472 | ||||||
Foreign currency transactions | (223 | ) | (895 | ) | ||||
Net change in unrealized appreciation (depreciation) on: | ||||||||
Investments | 30,654 | 7,803 | ||||||
Futures contracts | (3,218 | ) | (903 | ) | ||||
Foreign currency translations | (921 | ) | (499 | ) | ||||
Net Gains (Losses) | 20,044 | 5,586 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $52,624 | $31,961 |
(1) | Amounts include dividend income from the Diversified Assets Portfolio of the Northern Institutional Funds of $1, $1, $1, $3, $1 and $10, respectively. |
(2) | Net of $4,191 in non-reclaimable foreign withholding taxes. |
(3) | Net of $1,312 in non-reclaimable foreign withholding taxes. |
(4) | Amount includes dividend income from the Diversified Assets Portfolio of the Northern Institutional Funds of which the amount is less than $1. |
(5) | Net of $153 in non-reclaimable foreign withholding taxes. |
(6) | Net of $8,602 in non-reclaimable foreign withholding taxes. |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 4 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SIX MONTHS ENDED SEPTEMBER 30, 2014 (UNAUDITED) |
GLOBAL SUSTAINABILITY INDEX FUND | INTERNATIONAL EQUITY INDEX FUND | MID CAP INDEX FUND | SMALL CAP INDEX FUND | STOCK INDEX FUND | ||||||||||||||
$2,457 | (4)(5) | $90,596 | (1)(6) | $9,763 | (1) | $6,541 | (1) | $58,676 | (1) | |||||||||
1 | 1 | 1 | – | 2 | ||||||||||||||
2,458 | 90,597 | 9,764 | 6,541 | 58,678 | ||||||||||||||
89 | 2,254 | 454 | 315 | 1,236 | ||||||||||||||
160 | 2,925 | 648 | 470 | 1,418 | ||||||||||||||
68 | 1,755 | 486 | 352 | 2,127 | ||||||||||||||
103 | 2,198 | 87 | 93 | 327 | ||||||||||||||
9 | 122 | 37 | 28 | 147 | ||||||||||||||
53 | 1,358 | 377 | 271 | 1,650 | ||||||||||||||
13 | 27 | 16 | 15 | 27 | ||||||||||||||
7 | 28 | 11 | 8 | 34 | ||||||||||||||
17 | 45 | 23 | 17 | 45 | ||||||||||||||
19 | 76 | 75 | 54 | 81 | ||||||||||||||
9 | 53 | 14 | 9 | 53 | ||||||||||||||
– | – | – | – | – | ||||||||||||||
5 | 62 | 9 | 6 | 27 | ||||||||||||||
552 | 10,903 | 2,237 | 1,638 | 7,172 | ||||||||||||||
(263 | ) | (4,781 | ) | (1,224 | ) | (921 | ) | (4,202 | ) | |||||||||
289 | 6,122 | 1,013 | 717 | 2,970 | ||||||||||||||
2,169 | 84,475 | 8,751 | 5,824 | 55,708 | ||||||||||||||
1,168 | (3,804 | ) | 37,423 | 38,298 | 10,292 | |||||||||||||
393 | 6,705 | 189 | (962 | ) | 15,493 | |||||||||||||
(84 | ) | (4,439 | ) | – | – | – | ||||||||||||
596 | (199,072 | ) | (44,844 | ) | (96,063 | ) | 282,841 | |||||||||||
(94 | ) | (2,111 | ) | (1,168 | ) | (684 | ) | (3,122 | ) | |||||||||
(81 | ) | (1,133 | ) | – | – | – | ||||||||||||
1,898 | (203,854 | ) | (8,400 | ) | (59,411 | ) | 305,504 | |||||||||||
$4,067 | $(119,379 | ) | $351 | $(53,587 | ) | $361,212 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 5 | EQUITY INDEX FUNDS |
Table of Contents
EQUITY INDEX FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
EMERGING MARKETS EQUITY INDEX FUND | GLOBAL REAL ESTATE INDEX FUND | |||||||||||||||
Amounts in thousands | SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | ||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $32,580 | $47,355 | $26,375 | $32,353 | ||||||||||||
Net realized gains (losses) | (6,471 | ) | (97,540 | ) | (815 | ) | 2,567 | |||||||||
Net change in unrealized appreciation (depreciation) | 26,515 | 4,014 | 6,401 | (33,106 | ) | |||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 52,624 | (46,171 | ) | 31,961 | 1,814 | |||||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | (23,459 | ) | (118,621 | ) | 133,950 | 82,641 | ||||||||||
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions | (23,459 | ) | (118,621 | ) | 133,950 | 82,641 | ||||||||||
DISTRIBUTIONS PAID: | ||||||||||||||||
From net investment income | – | (42,947 | ) | (22,453 | ) | (45,432 | ) | |||||||||
From net realized gains | – | – | – | – | ||||||||||||
Total Distributions Paid | – | (42,947 | ) | (22,453 | ) | (45,432 | ) | |||||||||
Total Increase (Decrease) in Net Assets | 29,165 | (207,739 | ) | 143,458 | 39,023 | |||||||||||
NET ASSETS: | ||||||||||||||||
Beginning of period | 1,936,530 | 2,144,269 | 1,388,286 | 1,349,263 | ||||||||||||
End of period | $1,965,695 | $1,936,530 | $1,531,744 | $1,388,286 | ||||||||||||
Accumulated Undistributed Net Investment Income (Loss) | $25,744 | $(6,836 | ) | $(24,890 | ) | $(28,812 | ) |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 6 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2014 (UNAUDITED) |
OR THE FISCAL YEAR ENDED MARCH 31, 2014
GLOBAL SUSTAINABILITY | INTERNATIONAL EQUITY INDEX FUND | MID CAP INDEX FUND | SMALL CAP INDEX FUND | STOCK INDEX FUND | ||||||||||||||||||||||||||||||||||
SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | |||||||||||||||||||||||||||||
$2,169 | $4,095 | $84,475 | $121,595 | $8,751 | $14,917 | $5,824 | $9,276 | $55,708 | $102,938 | |||||||||||||||||||||||||||||
1,477 | 1,780 | (1,538 | ) | (2,459 | ) | 37,612 | 50,627 | 37,336 | 38,212 | 25,785 | 73,784 | |||||||||||||||||||||||||||
421 | 19,782 | (202,316 | ) | 419,036 | (46,012 | ) | 157,028 | (96,747 | ) | 144,665 | 279,719 | 855,634 | ||||||||||||||||||||||||||
4,067 | 25,657 | (119,379 | ) | 538,172 | 351 | 222,572 | (53,587 | ) | 192,153 | 361,212 | 1,032,356 | |||||||||||||||||||||||||||
12,907 | 20,170 | 344,488 | 1,688,484 | 26,285 | 161,685 | (25,948 | ) | 72,969 | 54,174 | (108,146 | ) | |||||||||||||||||||||||||||
12,907 | 20,170 | 344,488 | 1,688,484 | 26,285 | 161,685 | (25,948 | ) | 72,969 | 54,174 | (108,146 | ) | |||||||||||||||||||||||||||
– | (2,889 | ) | – | (83,000 | ) | – | (12,500 | ) | – | (7,555 | ) | (54,465 | ) | (101,707 | ) | |||||||||||||||||||||||
– | – | – | – | – | (35,929 | ) | – | (35,014 | ) | – | (17,304 | ) | ||||||||||||||||||||||||||
– | (2,889 | ) | – | (83,000 | ) | – | (48,429 | ) | – | (42,569 | ) | (54,465 | ) | (119,011 | ) | |||||||||||||||||||||||
16,974 | 42,938 | 225,109 | 2,143,656 | 26,636 | 335,828 | (79,535 | ) | 222,553 | 360,921 | 805,199 | ||||||||||||||||||||||||||||
177,675 | 134,737 | 4,608,961 | 2,465,305 | 1,316,168 | 980,340 | 985,665 | 763,112 | 5,635,985 | 4,830,786 | |||||||||||||||||||||||||||||
$194,649 | $177,675 | $4,834,070 | $4,608,961 | $1,342,804 | $1,316,168 | $906,130 | $985,665 | $5,996,906 | $5,635,985 | |||||||||||||||||||||||||||||
$3,830 | $1,661 | $132,916 | $48,441 | $12,563 | $3,812 | $7,881 | $2,057 | $3,611 | $2,368 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 7 | EQUITY INDEX FUNDS |
Table of Contents
EQUITY INDEX FUNDS
FINANCIAL HIGHLIGHTS
EMERGING MARKETS EQUITY INDEX FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS SEPT. 30, 2014 | YEAR ENDED MARCH 31, 2014 | YEAR 2013 | YEAR ENDED MARCH 31, 2012 | YEAR ENDED MARCH 31, 2011 | YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $11.16 | $11.58 | $11.65 | $13.06 | $11.31 | $6.46 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.19 | 0.25 | 0.23 | 0.22 | 0.15 | 0.07 | ||||||||||||||||||
Net realized and unrealized gains (losses) | 0.12 | (0.44 | ) | (0.03 | ) | (1.48 | ) | 1.80 | 4.90 | |||||||||||||||
Total from Investment Operations | 0.31 | (0.19 | ) | 0.20 | (1.26 | ) | 1.95 | 4.97 | ||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income(1) | – | (0.23 | ) | (0.27 | ) | (0.15 | ) | (0.20 | ) | (0.12 | ) | |||||||||||||
Total Distributions Paid | – | (0.23 | ) | (0.27 | ) | (0.15 | ) | (0.20 | ) | (0.12 | ) | |||||||||||||
Net Asset Value, End of Period | $11.47 | $11.16 | $11.58 | $11.65 | $13.06 | $11.31 | ||||||||||||||||||
Total Return(2) | 2.78 | % | (1.66 | )% | 1.67 | % | (9.34 | )% | 17.24 | % | 77.02 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $1,965,695 | $1,936,530 | $2,144,269 | $1,693,422 | $1,614,849 | $1,368,577 | ||||||||||||||||||
Ratio to average net assets of:(3) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 0.30 | %(4) | 0.30 | %(4) | 0.30 | %(4) | 0.61 | %(4) | 0.72 | %(4) | 0.72 | % | ||||||||||||
Expenses, before reimbursements and credits | 0.52 | % | 0.72 | % | 0.73 | % | 0.73 | % | 0.72 | % | 0.72 | % | ||||||||||||
Net investment income, net of reimbursements and credits | 3.21 | %(4) | 2.25 | %(4) | 2.08 | %(4) | 1.90 | %(4) | 1.38 | %(4) | 1.07 | % | ||||||||||||
Net investment income, before reimbursements and credits | 2.99 | % | 1.83 | % | 1.65 | % | 1.78 | % | 1.38 | % | 1.07 | % | ||||||||||||
Portfolio Turnover Rate | 8.51 | % | 32.31 | % | 26.98 | % | 33.19 | % | 40.61 | % | 13.07 | % |
(1) | Distributions to shareholders from net investment income include amounts relating to foreign currency transactions which are treated as ordinary income for federal income tax purposes. |
(2) | 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. Total return is not annualized for periods less than one year. |
(3) | Annualized for periods less than one year. |
(4) | 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, $5,000, $12,000, $3,000 and $8,000, which represent less than 0.005 percent of average net assets for the six months ended September 30, 2014 and fiscal years ended March 31, 2014, 2013, 2012, and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 8 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
GLOBAL REAL ESTATE INDEX FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS SEPT. 30, | YEAR ENDED MARCH 31, | YEAR ENDED MARCH 31, 2013 | YEAR ENDED MARCH 31, | YEAR ENDED | YEAR ENDED | ||||||||||||||||||
Net Asset Value, Beginning of Period | $9.39 | $9.70 | $8.38 | $8.47 | $7.37 | $4.14 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.19 | 0.22 | 0.24 | 0.18 | 0.17 | 0.17 | ||||||||||||||||||
Net realized and unrealized gains (losses) | 0.07 | (0.23 | ) | 1.40 | (0.08 | ) | 1.10 | 3.23 | ||||||||||||||||
Total from Investment Operations | 0.26 | (0.01 | ) | 1.64 | 0.10 | 1.27 | 3.40 | |||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income(1) | (0.15 | ) | (0.30 | ) | (0.32 | ) | (0.19 | ) | (0.17 | ) | (0.17 | ) | ||||||||||||
Total Distributions Paid | (0.15 | ) | (0.30 | ) | (0.32 | ) | (0.19 | ) | (0.17 | ) | (0.17 | ) | ||||||||||||
Net Asset Value, End of Period | $9.50 | $9.39 | $9.70 | $8.38 | $8.47 | $7.37 | ||||||||||||||||||
Total Return(2) | 2.70 | % | 0.03 | % | 20.11 | % | 1.42 | % | 17.52 | % | 82.69 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $1,531,744 | $1,388,286 | $1,349,263 | $728,356 | $651,181 | $496,724 | ||||||||||||||||||
Ratio to average net assets of:(3) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 0.50 | %(4) | 0.50 | %(4) | 0.50 | %(4) | 0.61 | %(4) | 0.65 | %(4) | 0.65 | % | ||||||||||||
Expenses, before reimbursements and credits | 0.62 | % | 0.73 | % | 0.73 | % | 0.74 | % | 0.74 | % | 0.75 | % | ||||||||||||
Net investment income, net of reimbursements and credits | 3.52 | %(4) | 2.32 | %(4) | 2.52 | %(4) | 2.27 | %(4) | 2.01 | %(4) | 2.64 | % | ||||||||||||
Net investment income, before reimbursements and credits | 3.40 | % | 2.09 | % | 2.29 | % | 2.14 | % | 1.92 | % | 2.54 | % | ||||||||||||
Portfolio Turnover Rate | 2.71 | % | 9.14 | % | 7.75 | % | 5.02 | % | 4.56 | % | 21.50 | % |
(1) | Distributions to shareholders from net investment income include amounts relating to foreign currency transactions which are treated as ordinary income for federal income tax purposes. |
(2) | 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. Total return is not annualized for periods less than one year. |
(3) | Annualized for periods less than one year. |
(4) | 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, $12,000, $33,000, $3,000 and $13,000, which represent less than 0.005 percent of average net assets for the six months ended September 30, 2014 and fiscal years ended March 31, 2014, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 9 | EQUITY INDEX FUNDS |
Table of Contents
EQUITY INDEX FUNDS
FINANCIAL HIGHLIGHTS continued
GLOBAL SUSTAINABILITY INDEX FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS SEPT. 30, 2014 | YEAR ENDED MARCH 31, 2014 | YEAR ENDED 2013 | YEAR ENDED MARCH 31, 2012 | YEAR ENDED MARCH 31, 2011 | YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $11.87 | $10.20 | $9.26 | $9.37 | $8.53 | $5.62 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.13 | 0.29 | 0.24 | 0.17 | 0.14 | 0.12 | ||||||||||||||||||
Net realized and unrealized gains (losses) | 0.15 | 1.59 | 0.94 | (0.12 | ) | 0.83 | 2.91 | |||||||||||||||||
Total from Investment Operations | 0.28 | 1.88 | 1.18 | 0.05 | 0.97 | 3.03 | ||||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income(1) | – | (0.21 | ) | (0.24 | ) | (0.16 | ) | (0.13 | ) | (0.12 | ) | |||||||||||||
Total Distributions Paid | – | (0.21 | ) | (0.24 | ) | (0.16 | ) | (0.13 | ) | (0.12 | ) | |||||||||||||
Net Asset Value, End of Period | $12.15 | $11.87 | $10.20 | $9.26 | $9.37 | $8.53 | ||||||||||||||||||
Total Return(2) | 2.36 | % | 18.38 | % | 13.13 | % | 0.81 | % | 11.49 | % | 53.91 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $194,649 | $177,675 | $134,737 | $114,324 | $99,201 | $72,981 | ||||||||||||||||||
Ratio to average net assets of:(3) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 0.30 | %(4) | 0.30 | %(4) | 0.30 | %(4) | 0.56 | %(4) | 0.65 | %(4) | 0.65 | % | ||||||||||||
Expenses, before reimbursements and credits | 0.58 | % | 0.83 | % | 0.87 | % | 0.89 | % | 0.91 | % | 1.01 | % | ||||||||||||
Net investment income, net of reimbursements and credits | 2.29 | %(4) | 2.70 | %(4) | 2.43 | %(4) | 2.08 | %(4) | 1.72 | %(4) | 1.80 | % | ||||||||||||
Net investment income, before reimbursements and credits | 2.01 | % | 2.17 | % | 1.86 | % | 1.75 | % | 1.46 | % | 1.44 | % | ||||||||||||
Portfolio Turnover Rate | 3.98 | % | 12.32 | % | 19.17 | % | 12.61 | % | 28.77 | % | 7.36 | % |
(1) | Distributions to shareholders from net investment income include amounts relating to foreign currency transactions which are treated as ordinary income for federal income tax purposes. |
(2) | 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. Total return is not annualized for periods less than one year. |
(3) | Annualized for periods less than one year. |
(4) | 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, $1,000, $2,000, $1,000 and $4,000, which represent less than 0.005 percent of average net assets for the six months ended September 30, 2014 and the fiscal years ended March 31, 2014, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 10 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
INTERNATIONAL EQUITY INDEX FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS SEPT. 30, | YEAR ENDED MARCH 31, | YEAR ENDED MARCH 31, | YEAR ENDED MARCH 31, 2012 | YEAR ENDED MARCH 31, | YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $12.41 | $10.78 | $9.96 | $10.88 | $10.09 | $6.70 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.20 | 0.33 | 0.25 | 0.28 | 0.23 | 0.19 | ||||||||||||||||||
Net realized and unrealized gains (losses) | (0.48 | ) | 1.54 | 0.83 | (0.94 | ) | 0.77 | 3.39 | ||||||||||||||||
Total from Investment Operations | (0.28 | ) | 1.87 | 1.08 | (0.66 | ) | 1.00 | 3.58 | ||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income(1) | – | (0.24 | ) | (0.26 | ) | (0.26 | ) | (0.21 | ) | (0.19 | ) | |||||||||||||
Total Distributions Paid | – | (0.24 | ) | (0.26 | ) | (0.26 | ) | (0.21 | ) | (0.19 | ) | |||||||||||||
Net Asset Value, End of Period | $12.13 | $12.41 | $10.78 | $9.96 | $10.88 | $10.09 | ||||||||||||||||||
Total Return(2) | (2.26 | )% | 17.32 | % | 11.04 | % | (5.67 | )% | 9.96 | % | 53.57 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $4,834,070 | $4,608,961 | $2,465,305 | $1,669,734 | $1,693,014 | $1,538,065 | ||||||||||||||||||
Ratio to average net assets of:(3) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 0.25 | %(4) | 0.25 | %(4) | 0.25 | %(4) | 0.40 | %(4) | 0.45 | %(4) | 0.45 | % | ||||||||||||
Expenses, before reimbursements and credits | 0.45 | % | 0.61 | % | 0.62 | % | 0.62 | % | 0.62 | % | 0.61 | % | ||||||||||||
Net investment income, net of reimbursements and credits | 3.49 | %(4) | 3.53 | %(4) | 2.97 | %(4) | 2.93 | %(4) | 2.32 | %(4) | 2.37 | % | ||||||||||||
Net investment income, before reimbursements and credits | 3.29 | % | 3.17 | % | 2.60 | % | 2.71 | % | 2.15 | % | 2.21 | % | ||||||||||||
Portfolio Turnover Rate | 9.66 | % | 40.72 | % | 25.01 | % | 30.63 | % | 8.41 | % | 13.38 | % |
(1) | Distributions to shareholders from net investment income include amounts relating to foreign currency transactions which are treated as ordinary income for federal income tax purposes. |
(2) | 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. Total return is not annualized for periods less than one year. |
(3) | Annualized for periods less than one year. |
(4) | 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 $4,000, $30,000, $14,000, $5,000 and $34,000, which represent less than 0.005 percent of average net assets for the six months ended September 30, 2014 and the fiscal years ended March 31, 2014, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 11 | EQUITY INDEX FUNDS |
Table of Contents
EQUITY INDEX FUNDS
FINANCIAL HIGHLIGHTS continued
MID CAP INDEX FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS SEPT. 30, | YEAR ENDED MARCH 31, | YEAR 2013 | YEAR ENDED 2012 | YEAR 2011 | YEAR 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $17.40 | $14.96 | $13.18 | $13.07 | $10.42 | $6.44 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.11 | 0.20 | 0.18 | 0.12 | 0.10 | 0.12 | ||||||||||||||||||
Net realized and unrealized gains (losses) | (0.10 | ) | 2.91 | 2.07 | 0.09 | 2.65 | 3.98 | |||||||||||||||||
Total from Investment Operations | 0.01 | 3.11 | 2.25 | 0.21 | 2.75 | 4.10 | ||||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income | – | (0.17 | ) | (0.17 | ) | (0.10 | ) | (0.10 | ) | (0.12 | ) | |||||||||||||
From net realized gains | – | (0.50 | ) | (0.30 | ) | – | – | – | ||||||||||||||||
Total Distributions Paid | – | (0.67 | ) | (0.47 | ) | (0.10 | ) | (0.10 | ) | (0.12 | ) | |||||||||||||
Net Asset Value, End of Period | $17.41 | $17.40 | $14.96 | $13.18 | $13.07 | $10.42 | ||||||||||||||||||
Total Return(1) | 0.06 | % | 21.11 | % | 17.56 | % | 1.75 | % | 26.46 | % | 63.81 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $1,342,804 | $1,316,168 | $980,340 | $671,199 | $519,014 | $325,342 | ||||||||||||||||||
Ratio to average net assets of:(2) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 0.15 | %(3) | 0.15 | %(3) | 0.15 | %(3) | 0.25 | %(3) | 0.29 | %(3) | 0.30 | % | ||||||||||||
Expenses, before reimbursements and credits | 0.33 | % | 0.50 | % | 0.51 | % | 0.52 | % | 0.53 | % | 0.52 | % | ||||||||||||
Net investment income, net of reimbursements and credits | 1.30 | %(3) | 1.29 | %(3) | 1.47 | %(3) | 1.07 | %(3) | 1.02 | %(3) | 1.29 | % | ||||||||||||
Net investment income, before reimbursements and credits | 1.12 | % | 0.94 | % | 1.11 | % | 0.80 | % | 0.78 | % | 1.07 | % | ||||||||||||
Portfolio Turnover Rate | 8.80 | % | 12.72 | % | 9.57 | % | 12.07 | % | 13.01 | % | 29.69 | % |
(1) | 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. Total return is not annualized for periods less than one year. |
(2) | Annualized for periods less than one year. |
(3) | 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 $3,000, $20,000, $29,000 and $15,000, which represent less than 0.005 percent of average net assets for the six months ended September 30, 2014 and the fiscal years ended March 31, 2014, 2013 and 2012, respectively, and approximately $21,000, which represents 0.01 percent of average net assets for the fiscal year ended March 31, 2011. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 12 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SMALL CAP INDEX FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS SEPT. 30, | YEAR ENDED MARCH 31, | YEAR ENDED MARCH 31, | YEAR 2012 | YEAR 2011 | YEAR 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $12.38 | $10.41 | $9.16 | $9.28 | $7.46 | $4.63 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.08 | 0.12 | 0.13 | 0.08 | 0.06 | 0.06 | ||||||||||||||||||
Net realized and unrealized gains (losses) | (0.77 | ) | 2.43 | 1.33 | (0.14 | ) | 1.82 | 2.83 | ||||||||||||||||
Total from Investment Operations | (0.69 | ) | 2.55 | 1.46 | (0.06 | ) | 1.88 | 2.89 | ||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income | – | (0.10 | ) | (0.15 | ) | (0.06 | ) | (0.06 | ) | (0.06 | ) | |||||||||||||
From net realized gains | – | (0.48 | ) | (0.06 | ) | – | – | – | ||||||||||||||||
Total Distributions Paid | – | (0.58 | ) | (0.21 | ) | (0.06 | ) | (0.06 | ) | (0.06 | ) | |||||||||||||
Net Asset Value, End of Period | $11.69 | $12.38 | $10.41 | $9.16 | $9.28 | $7.46 | ||||||||||||||||||
Total Return(1) | (5.57 | )% | 24.77 | % | 16.24 | % | (0.53 | )% | 25.29 | % | 62.55 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $906,130 | $985,665 | $763,112 | $512,782 | $442,254 | $273,798 | ||||||||||||||||||
Ratio to average net assets of:(2) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 0.15 | %(3) | 0.15 | %(3) | 0.15 | %(3) | 0.29 | %(3) | 0.34 | %(3) | 0.35 | % | ||||||||||||
Expenses, before reimbursements and credits | 0.34 | % | 0.51 | % | 0.52 | % | 0.53 | % | 0.55 | % | 0.54 | % | ||||||||||||
Net investment income, net of reimbursements and credits | 1.22 | %(3) | 1.06 | %(3) | 1.60 | %(3) | 1.02 | %(3) | 0.85 | %(3) | 0.94 | % | ||||||||||||
Net investment income, before reimbursements and credits | 1.03 | % | 0.70 | % | 1.23 | % | 0.78 | % | 0.64 | % | 0.75 | % | ||||||||||||
Portfolio Turnover Rate | 12.67 | % | 15.62 | % | 13.04 | % | 16.51 | % | 13.55 | % | 21.34 | % |
(1) | 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. Total return is not annualized for periods less than one year. |
(2) | Annualized for periods less than one year. |
(3) | 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 $3,000, $15,000, $24,000 and $10,000, which represent less than 0.005 percent of average net assets for the six months ended September 30, 2014 and the fiscal years ended March 31, 2014, 2013 and 2012, respectively and approximately $26,000, which represents 0.01 percent of average net assets for the fiscal year ended March 31, 2011. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 13 | EQUITY INDEX FUNDS |
Table of Contents
EQUITY INDEX FUNDS
FINANCIAL HIGHLIGHTS continued
STOCK INDEX FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS SEPT. 30, | YEAR ENDED MARCH 31, 2014 | YEAR ENDED MARCH 31, 2013 | YEAR ENDED MARCH 31, | YEAR ENDED MARCH 31, 2011 | YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $23.17 | $19.47 | $17.46 | $16.41 | $14.47 | $9.85 | ||||||||||||||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.23 | 0.43 | 0.37 | 0.28 | 0.26 | 0.23 | ||||||||||||||||||
Net realized and unrealized gains | 1.24 | 3.76 | 2.01 | 1.05 | 1.94 | 4.62 | ||||||||||||||||||
Total from Investment Operations | 1.47 | 4.19 | 2.38 | 1.33 | 2.20 | 4.85 | ||||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income | (0.22 | ) | (0.42 | ) | (0.37 | ) | (0.28 | ) | (0.26 | ) | (0.23 | ) | ||||||||||||
From net realized gains | – | (0.07 | ) | – | – | – | – | |||||||||||||||||
Total Distributions Paid | (0.22 | ) | (0.49 | ) | (0.37 | ) | (0.28 | ) | (0.26 | ) | (0.23 | ) | ||||||||||||
Net Asset Value, End of Period | $24.42 | $23.17 | $19.47 | $17.46 | $16.41 | $14.47 | ||||||||||||||||||
Total Return(1) | 6.35 | % | 21.73 | % | 13.83 | % | 8.31 | % | 15.40 | % | 49.46 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $5,996,906 | $5,635,985 | $4,830,786 | $3,287,234 | $2,233,947 | $1,526,494 | ||||||||||||||||||
Ratio to average net assets of:(2) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 0.10 | %(3) | 0.10 | %(3) | 0.10 | %(3) | 0.20 | %(3) | 0.24 | %(3) | 0.25 | % | ||||||||||||
Expenses, before reimbursements and credits | 0.24 | % | 0.38 | % | 0.38 | % | 0.39 | % | 0.39 | % | 0.39 | % | ||||||||||||
Net investment income, net of reimbursements and credits | 1.88 | %(3) | 1.96 | %(3) | 2.17 | %(3) | 1.88 | %(3) | 1.85 | %(3) | 1.84 | % | ||||||||||||
Net investment income, before reimbursements and credits | 1.74 | % | 1.68 | % | 1.89 | % | 1.69 | % | 1.70 | % | 1.70 | % | ||||||||||||
Portfolio Turnover Rate | 1.36 | % | 8.16 | % | 7.38 | % | 2.73 | % | 4.35 | % | 11.85 | % |
(1) | 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. Total return is not annualized for periods less than one year. |
(2) | Annualized for periods less than one year. |
(3) | 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 $22,000, $71,000, $121,000 and $50,000, which represent less than 0.005 percent of average net assets for the six months ended September 30, 2014 and the fiscal years ended March 31, 2014, 2013 and 2012, respectively, and approximately $113,000, which represents 0.01 percent of average net assets for the fiscal year ended March 31, 2011. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 14 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.6% | ||||||||
Brazil – 5.8% | ||||||||
ALL – America Latina Logistica S.A. | 217,328 | $564 | ||||||
AMBEV S.A. | 2,255,760 | 14,846 | ||||||
B2W Cia Digital* | 61,447 | 819 | ||||||
Banco Bradesco S.A. | 299,078 | 4,314 | ||||||
Banco do Brasil S.A. | 405,344 | 4,216 | ||||||
Banco Santander Brasil S.A. | 240,136 | 1,558 | ||||||
Banco Santander Brasil S.A. ADR | 203,010 | 1,328 | ||||||
BB Seguridade Participacoes S.A. | 336,601 | 4,440 | ||||||
BM&FBovespa S.A. | 867,761 | 3,981 | ||||||
BR Malls Participacoes S.A. | 202,115 | 1,589 | ||||||
BR Properties S.A. | 75,700 | 399 | ||||||
BRF S.A.* | 313,120 | 7,471 | ||||||
CCR S.A. | 414,100 | 2,859 | ||||||
Centrais Eletricas Brasileiras S.A.* | 152,751 | 410 | ||||||
CETIP S.A. – Mercados Organizados | 99,951 | 1,241 | ||||||
Cia de Saneamento Basico do Estado de Sao Paulo* | 168,371 | 1,365 | ||||||
Cia de Saneamento de Minas Gerais-COPASA* | 32,700 | 428 | ||||||
Cia Siderurgica Nacional S.A. | 357,490 | 1,276 | ||||||
Cielo S.A. | 338,422 | 5,507 | ||||||
Cosan S.A. Industria e Comercio | 61,747 | 984 | ||||||
CPFL Energia S.A. | 116,220 | 909 | ||||||
Cyrela Brazil Realty S.A. Empreendimentos e Participacoes | 141,372 | 713 | ||||||
Duratex S.A.* | 145,746 | 535 | ||||||
EcoRodovias Infraestrutura e Logistica S.A. | 92,470 | 451 | ||||||
EDP – Energias do Brasil S.A. | 128,705 | 522 | ||||||
Embraer S.A. | 316,662 | 3,117 | ||||||
Estacio Participacoes S.A. | 135,384 | 1,409 | ||||||
Fibria Celulose S.A.* | 107,617 | 1,181 | ||||||
Hypermarcas S.A.* | 175,858 | 1,267 | ||||||
JBS S.A. | 353,836 | 1,333 | ||||||
Kroton Educacional S.A. | 629,552 | 3,956 | ||||||
Localiza Rent a Car S.A. | 67,419 | 969 | ||||||
Lojas Americanas S.A. | 90,000 | 423 | ||||||
Lojas Renner S.A. | 61,639 | 1,782 | ||||||
M Dias Branco S.A.* | 16,500 | 662 | ||||||
Multiplan Empreendimentos Imobiliarios S.A.* | 33,620 | 687 | ||||||
Natura Cosmeticos S.A. | 77,014 | 1,170 | ||||||
Odontoprev S.A. | 94,250 | 341 | ||||||
Petroleo Brasileiro S.A.* | 1,388,078 | 9,867 | ||||||
Petroleo Brasileiro S.A. ADR* | 22,600 | 321 | ||||||
Porto Seguro S.A. | 55,508 | 646 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.6% – continued | ||||||||
Brazil – 5.8% – continued | ||||||||
Qualicorp S.A.* | 98,600 | $976 | ||||||
Raia Drogasil S.A.* | 104,507 | 908 | ||||||
Souza Cruz S.A. | 189,040 | 1,521 | ||||||
Sul America S.A. | 61,099 | 377 | ||||||
Tim Participacoes S.A. | 416,436 | 2,183 | ||||||
Totvs S.A. | 61,255 | 930 | ||||||
Tractebel Energia S.A. | 84,338 | 1,192 | ||||||
Transmissora Alianca de Energia Eletrica S.A. | 53,200 | 430 | ||||||
Ultrapar Participacoes S.A. | 170,924 | 3,625 | ||||||
Vale S.A. | 597,662 | 6,575 | ||||||
Vale S.A. ADR | 29,608 | 326 | ||||||
Via Varejo S.A.* | 58,900 | 584 | ||||||
WEG S.A. | 137,540 | 1,609 | ||||||
113,092 | ||||||||
Chile – 1.3% | ||||||||
AES Gener S.A. | 1,207,307 | 640 | ||||||
Aguas Andinas S.A., Class A | 1,171,624 | 678 | ||||||
Banco de Chile | 11,625,280 | 1,433 | ||||||
Banco de Credito e Inversiones | 16,597 | 937 | ||||||
Banco Santander Chile | 32,018,558 | 1,786 | ||||||
Banco Santander Chile ADR | 1,400 | 31 | ||||||
CAP S.A. | 40,409 | 428 | ||||||
Cencosud S.A. | 613,242 | 1,806 | ||||||
Cia Cervecerias Unidas S.A. | 74,622 | 821 | ||||||
Colbun S.A. | 3,985,878 | 1,024 | ||||||
Corpbanca S.A. | 68,096,665 | 870 | ||||||
Empresa Nacional de Electricidad S.A. ADR | 3,800 | 167 | ||||||
Empresa Nacional de Electricidad S.A. | 1,510,195 | 2,214 | ||||||
Empresas CMPC S.A. | 602,889 | 1,424 | ||||||
Empresas COPEC S.A. | 212,587 | 2,599 | ||||||
Enersis S.A. | 8,939,078 | 2,838 | ||||||
Enersis S.A. ADR | 3,072 | 48 | ||||||
ENTEL Chile S.A. | 57,513 | 652 | ||||||
Latam Airlines Group S.A.* | 114,813 | 1,317 | ||||||
Latam Airlines Group S.A. BDR* | 34,762 | 377 | ||||||
S.A.C.I. Falabella | 457,508 | 3,452 | ||||||
Vina Concha y Toro S.A. | 237,837 | 466 | ||||||
26,008 | ||||||||
China – 14.2% | ||||||||
AAC Technologies Holdings, Inc. | 366,500 | 2,122 | ||||||
Agile Property Holdings Ltd. | 772,000 | 475 | ||||||
Agricultural Bank of China Ltd., Class H | 10,200,367 | 4,507 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 15 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
EMERGING MARKETS EQUITY INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.6% – continued | ||||||||
China – 14.2% – continued | ||||||||
Air China Ltd., Class H | 1,016,705 | $643 | ||||||
Aluminum Corp. of China Ltd., Class H* | 1,889,435 | 769 | ||||||
Anhui Conch Cement Co. Ltd., Class H | 612,575 | 1,957 | ||||||
ANTA Sports Products Ltd. | 426,432 | 869 | ||||||
AviChina Industry & Technology Co. Ltd., Class H | 894,313 | 640 | ||||||
Bank of China Ltd., Class H | 38,063,652 | 17,079 | ||||||
Bank of Communications Co. Ltd., | 4,071,117 | 2,838 | ||||||
BBMG Corp., Class H | 644,841 | 448 | ||||||
Beijing Capital International Airport Co. Ltd., Class H | 810,000 | 620 | ||||||
Biostime International Holdings Ltd. | 85,000 | 264 | ||||||
Byd Co. Ltd., Class H | 260,199 | 1,720 | ||||||
China BlueChemical Ltd., Class H | 826,851 | 359 | ||||||
China Cinda Asset Management Co. Ltd., Class H* | 1,840,000 | 809 | ||||||
China CITIC Bank Corp. Ltd., Class H | 3,807,286 | 2,303 | ||||||
China Coal Energy Co. Ltd., Class H | 2,021,232 | 1,183 | ||||||
China Communications Construction Co. Ltd., Class H | 2,127,287 | 1,535 | ||||||
China Communications Services Corp. Ltd., Class H | 1,153,035 | 536 | ||||||
China Construction Bank Corp., Class H | 34,561,410 | 24,244 | ||||||
China COSCO Holdings Co. Ltd., | 1,419,221 | 589 | ||||||
China Everbright Bank Co. Ltd., Class H | 1,386,000 | 646 | ||||||
China Everbright International Ltd. | 1,157,000 | 1,526 | ||||||
China Huishan Dairy Holdings Co. Ltd. | 2,345,380 | 520 | ||||||
China International Marine Containers Group Co. Ltd., Class H | 277,100 | 569 | ||||||
China Life Insurance Co. Ltd., Class H | 3,587,544 | 9,959 | ||||||
China Longyuan Power Group Corp., Class H | 1,477,473 | 1,440 | ||||||
China Mengniu Dairy Co. Ltd. | 648,935 | 2,675 | ||||||
China Merchants Bank Co. Ltd., Class H | 2,176,433 | 3,710 | ||||||
China Minsheng Banking Corp. Ltd., Class H | 2,854,712 | 2,613 | ||||||
China National Building Material Co. Ltd., Class H | 1,408,000 | 1,272 | ||||||
China Oilfield Services Ltd., Class H | 888,757 | 2,348 | ||||||
China Pacific Insurance Group Co. Ltd., Class H | 1,244,137 | 4,364 | ||||||
China Petroleum & Chemical Corp., | 12,294,628 | 10,758 | ||||||
China Railway Construction Corp. Ltd., Class H | 967,000 | 878 | ||||||
China Railway Group Ltd., Class H | 1,973,827 | 1,047 | ||||||
China Shenhua Energy Co. Ltd., Class H | 1,602,136 | 4,472 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.6% – continued | ||||||||
China – 14.2% – continued | ||||||||
China Shipping Container Lines Co. Ltd., Class H* | 2,097,695 | $563 | ||||||
China Telecom Corp. Ltd., Class H | 6,612,339 | 4,062 | ||||||
China Vanke Co. Ltd., Class H* | 672,172 | 1,183 | ||||||
Chongqing Changan Automobile Co. Ltd., Class B | 398,700 | 856 | ||||||
Chongqing Rural Commercial Bank, Class H | 1,353,434 | 612 | ||||||
Citic 21CN Co. Ltd.* | 1,216,000 | 737 | ||||||
CITIC Securities Co. Ltd., Class H | 547,500 | 1,259 | ||||||
CNOOC Ltd. | 8,538,433 | 14,696 | ||||||
Country Garden Holdings Co. Ltd. | 2,382,472 | 897 | ||||||
CSR Corp. Ltd., Class H | 922,669 | 809 | ||||||
Datang International Power Generation Co. Ltd., Class H | 1,077,875 | 561 | ||||||
Dongfeng Motor Group Co. Ltd., Class H | 1,347,169 | 2,216 | ||||||
ENN Energy Holdings Ltd. | 349,279 | 2,286 | ||||||
Evergrande Real Estate Group Ltd. | 2,674,400 | 1,003 | ||||||
Fosun International Ltd. | 821,160 | 986 | ||||||
Geely Automobile Holdings Ltd. | 2,653,423 | 1,110 | ||||||
Golden Eagle Retail Group Ltd. | 314,675 | 366 | ||||||
GOME Electrical Appliances Holding Ltd. | 4,779,970 | 776 | ||||||
Great Wall Motor Co. Ltd., Class H | 510,432 | 1,985 | ||||||
Guangzhou Automobile Group Co. Ltd., Class H | 1,131,760 | 1,090 | ||||||
Guangzhou R&F Properties Co. Ltd., Class H | 438,814 | 444 | ||||||
Haitian International Holdings Ltd. | 291,000 | 659 | ||||||
Haitong Securities Co. Ltd., Class H | 648,000 | 996 | ||||||
Hengan International Group Co. Ltd. | 345,398 | 3,398 | ||||||
Huaneng Power International, Inc., | 1,470,501 | 1,602 | ||||||
Industrial & Commercial Bank of China Ltd., Class H | 35,365,515 | 22,071 | ||||||
Inner Mongolia Yitai Coal Co. Ltd., | 542,316 | 923 | ||||||
Intime Retail Group Co. Ltd. | 463,635 | 394 | ||||||
Jiangsu Expressway Co. Ltd., Class H | 622,000 | 656 | ||||||
Jiangxi Copper Co. Ltd., Class H | 541,000 | 888 | ||||||
Kingsoft Corp. Ltd. | 303,903 | 723 | ||||||
Lenovo Group Ltd. | 2,918,000 | 4,348 | ||||||
Longfor Properties Co. Ltd. | 679,231 | 778 | ||||||
New China Life Insurance Co. Ltd., | 372,971 | 1,296 | ||||||
People’s Insurance Co. Group of China Ltd., Class H | 2,997,535 | 1,220 | ||||||
PetroChina Co. Ltd., Class H | 10,175,438 | 13,052 | ||||||
PICC Property & Casualty Co. Ltd., | 1,566,923 | 2,778 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 16 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.6% – continued | ||||||||
China – 14.2% – continued | ||||||||
Ping An Insurance Group Co. of China Ltd., Class H | 970,953 | $7,300 | ||||||
Shandong Weigao Group Medical | ||||||||
Polymer Co. Ltd., Class H | 864,116 | 855 | ||||||
Shanghai Electric Group Co. Ltd., | 1,572,000 | 836 | ||||||
Shanghai Fosun Pharmaceutical Group Co. Ltd., Class H | 169,500 | 545 | ||||||
Shanghai Pharmaceuticals Holding Co. Ltd., Class H | 323,600 | 791 | ||||||
Shenzhou International Group | ||||||||
Holdings Ltd. | 271,000 | 871 | ||||||
Shui On Land Ltd. | 1,674,858 | 375 | ||||||
Sihuan Pharmaceutical Holdings Group Ltd. | 2,146,126 | 1,610 | ||||||
Sino Biopharmaceutical Ltd. | 1,432,000 | 1,426 | ||||||
Sino-Ocean Land Holdings Ltd. | 1,645,423 | 867 | ||||||
Sinopec Engineering Group Co. Ltd., Class H | 515,000 | 554 | ||||||
Sinopec Shanghai Petrochemical Co. Ltd., Class H | 1,920,005 | 632 | ||||||
Sinopharm Group Co. Ltd., Class H | 481,114 | 1,757 | ||||||
SOHO China Ltd. | 899,778 | 650 | ||||||
Sun Art Retail Group Ltd. | 1,186,500 | 1,342 | ||||||
Tencent Holdings Ltd. | 2,458,570 | 36,598 | ||||||
Tingyi Cayman Islands Holding Corp. | 906,435 | 2,383 | ||||||
Tsingtao Brewery Co. Ltd., Class H | 173,767 | 1,235 | ||||||
Uni-President China Holdings Ltd. | 716,400 | 717 | ||||||
Want Want China Holdings Ltd. | 2,802,870 | 3,496 | ||||||
Weichai Power Co. Ltd., Class H | 257,953 | 930 | ||||||
Yanzhou Coal Mining Co. Ltd., Class H | 927,138 | 760 | ||||||
Zhejiang Expressway Co. Ltd., Class H | 695,294 | 707 | ||||||
Zhongsheng Group Holdings Ltd. | 305,000 | 327 | ||||||
Zhuzhou CSR Times Electric Co. Ltd., Class H | 209,974 | 812 | ||||||
Zijin Mining Group Co. Ltd., Class H | 3,274,162 | 797 | ||||||
Zoomlion Heavy Industry Science and Technology Co. Ltd., Class H | 739,947 | 431 | ||||||
ZTE Corp., Class H | 284,098 | 631 | ||||||
279,820 | ||||||||
Colombia – 0.6% | ||||||||
Almacenes Exito S.A. | 97,565 | 1,428 | ||||||
Bolsa de Valores de Colombia | 393,656 | 534 | ||||||
Cementos Argos S.A. | 197,768 | 1,055 | ||||||
Corp. Financiera Colombiana S.A. | 42,109 | 832 | ||||||
Ecopetrol S.A. | 2,221,799 | 3,473 | ||||||
Ecopetrol S.A. ADR | 5,700 | 178 | ||||||
Grupo Argos S.A. | 130,958 | 1,468 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.6% – continued | ||||||||
Colombia – 0.6% – continued | ||||||||
Grupo de Inversiones Suramericana S.A. | 107,324 | $2,154 | ||||||
Interconexion Electrica S.A. ESP | 191,319 | 875 | ||||||
11,997 | ||||||||
Czech Republic – 0.2% | ||||||||
CEZ A.S. | 78,848 | 2,395 | ||||||
Komercni banka A.S. | 7,593 | 1,808 | ||||||
O2 Czech Republic A.S. | 42,903 | 617 | ||||||
4,820 | ||||||||
Egypt – 0.3% | ||||||||
Commercial International Bank | ||||||||
Egypt S.A.E. | 388,201 | 2,762 | ||||||
Global Telecom Holding S.A.E.* | 1,298,458 | 921 | ||||||
Talaat Moustafa Group | 494,677 | 792 | ||||||
Telecom Egypt Co. | 182,055 | 350 | ||||||
4,825 | ||||||||
Greece – 0.6% | ||||||||
Alpha Bank A.E.* | 1,902,851 | 1,469 | ||||||
Eurobank Ergasias S.A.* | 3,899,903 | 1,534 | ||||||
FF Group S.A.* | 14,512 | 540 | ||||||
Hellenic Telecommunications Organization S.A.* | 121,259 | 1,586 | ||||||
JUMBO S.A.* | 49,476 | 624 | ||||||
National Bank of Greece S.A.* | 766,442 | 2,242 | ||||||
OPAP S.A. | 97,735 | 1,279 | ||||||
Piraeus Bank S.A.* | 978,729 | 1,654 | ||||||
Public Power Corp. S.A.* | 56,712 | 673 | ||||||
Titan Cement Co. S.A. | 25,072 | 628 | ||||||
12,229 | ||||||||
Hong Kong – 4.3% | ||||||||
Alibaba Pictures Group Ltd.* | 2,510,000 | 520 | ||||||
Beijing Enterprises Holdings Ltd. | 238,771 | 2,047 | ||||||
Beijing Enterprises Water Group Ltd.* | 2,031,886 | 1,369 | ||||||
Belle International Holdings Ltd. | 2,275,000 | 2,560 | ||||||
Brilliance China Automotive Holdings Ltd. | 1,489,944 | 2,604 | ||||||
China Agri-Industries Holdings Ltd. | 1,162,492 | 441 | ||||||
China Everbright Ltd. | 403,110 | 757 | ||||||
China Gas Holdings Ltd. | 1,007,495 | 1,672 | ||||||
China Merchants Holdings International Co. Ltd. | 573,317 | 1,774 | ||||||
China Mobile Ltd. | 2,903,212 | 34,079 | ||||||
China Overseas Land & Investment Ltd. | 1,938,475 | 4,966 | ||||||
China Resources Cement Holdings Ltd. | 938,343 | 644 | ||||||
China Resources Enterprise Ltd. | 593,628 | 1,406 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 17 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
EMERGING MARKETS EQUITY INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.6% – continued | ||||||||
Hong Kong – 4.3% – continued | ||||||||
China Resources Gas Group Ltd. | 433,958 | $1,172 | ||||||
China Resources Land Ltd. | 1,017,756 | 2,088 | ||||||
China Resources Power Holdings Co. Ltd. | 946,900 | 2,557 | ||||||
China State Construction International Holdings Ltd. | 854,534 | 1,271 | ||||||
China Taiping Insurance Holdings Co. Ltd.* | 419,260 | 907 | ||||||
China Unicom Hong Kong Ltd. | 2,246,494 | 3,380 | ||||||
CITIC Ltd. | 1,087,803 | 1,813 | ||||||
COSCO Pacific Ltd. | 876,827 | 1,162 | ||||||
CSPC Pharmaceutical Group Ltd. | 954,000 | 790 | ||||||
Far East Horizon Ltd. | 711,000 | 637 | ||||||
Franshion Properties China Ltd. | 1,759,791 | 429 | ||||||
GCL-Poly Energy Holdings Ltd.* | 4,843,675 | 1,779 | ||||||
Guangdong Investment Ltd. | 1,116,514 | 1,304 | ||||||
Haier Electronics Group Co. Ltd. | 474,000 | 1,239 | ||||||
Hanergy Solar Group Ltd.* | 5,554,000 | 1,023 | ||||||
Kingboard Chemical Holdings Ltd. | 329,008 | 655 | ||||||
Kunlun Energy Co. Ltd. | 1,479,230 | 2,134 | ||||||
Lee & Man Paper Manufacturing Ltd. | 753,248 | 382 | ||||||
New World China Land Ltd. | 1,279,804 | 725 | ||||||
Nine Dragons Paper Holdings Ltd. | 767,923 | 554 | ||||||
Poly Property Group Co. Ltd. | 1,109,737 | 426 | ||||||
Shanghai Industrial Holdings Ltd. | 222,043 | 657 | ||||||
Shimao Property Holdings Ltd. | 673,903 | 1,367 | ||||||
Yingde Gases Group Co. Ltd. | 610,700 | 577 | ||||||
Yuexiu Property Co. Ltd. | 2,861,393 | 507 | ||||||
84,374 | ||||||||
Hungary – 0.2% | ||||||||
MOL Hungarian Oil & Gas PLC | 21,804 | 1,067 | ||||||
OTP Bank PLC | 104,071 | 1,767 | ||||||
Richter Gedeon Nyrt. | 66,895 | 1,047 | ||||||
3,881 | ||||||||
India – 6.8% | ||||||||
ACC Ltd. | 12,293 | 278 | ||||||
Adani Enterprises Ltd. | 58,749 | 446 | ||||||
Adani Ports and Special Economic Zone Ltd. | 222,528 | 997 | ||||||
Aditya Birla Nuvo Ltd. | 17,736 | 464 | ||||||
Ambuja Cements Ltd. | 343,299 | 1,187 | ||||||
Apollo Hospitals Enterprise Ltd. | 36,099 | 656 | ||||||
Asian Paints Ltd. | 139,005 | 1,418 | ||||||
Aurobindo Pharma Ltd. | 62,592 | 982 | ||||||
Bajaj Auto Ltd. | 37,274 | 1,420 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.6% – continued | ||||||||
India – 6.8% – continued | ||||||||
Bharat Heavy Electricals Ltd. | 290,922 | $941 | ||||||
Bharat Petroleum Corp. Ltd. | 82,305 | 871 | ||||||
Bharti Airtel Ltd. | 290,965 | 1,909 | ||||||
Cairn India Ltd. | 230,651 | 1,163 | ||||||
Cipla Ltd. | 148,580 | 1,509 | ||||||
Coal India Ltd. | 243,379 | 1,342 | ||||||
Dabur India Ltd. | 106,017 | 382 | ||||||
Divi’s Laboratories Ltd. | 21,886 | 636 | ||||||
DLF Ltd. | 198,766 | 483 | ||||||
Dr. Reddy’s Laboratories Ltd. | 40,755 | 2,134 | ||||||
Dr. Reddy’s Laboratories Ltd. ADR | 15,005 | 789 | ||||||
GAIL India Ltd. | 162,305 | 1,178 | ||||||
GlaxoSmithKline Consumer Healthcare Ltd. | 5,737 | 524 | ||||||
Godrej Consumer Products Ltd. | 57,371 | 917 | ||||||
HCL Technologies Ltd. | 121,736 | 3,377 | ||||||
HDFC Bank Ltd. | 126,472 | 1,781 | ||||||
HDFC Bank Ltd. ADR | 18,800 | 876 | ||||||
Hero MotoCorp Ltd. | 28,863 | 1,323 | ||||||
Hindalco Industries Ltd. | 501,423 | 1,268 | ||||||
Hindustan Unilever Ltd. | 359,425 | 4,335 | ||||||
Housing Development Finance Corp. | 714,793 | 12,189 | ||||||
ICICI Bank Ltd. | 48,818 | 1,130 | ||||||
ICICI Bank Ltd. ADR | 29,471 | 1,447 | ||||||
Idea Cellular Ltd. | 509,986 | 1,373 | ||||||
Infosys Ltd. | 185,351 | 11,269 | ||||||
Infosys Ltd. ADR | 36,037 | 2,180 | ||||||
ITC Ltd. | 1,072,694 | 6,432 | ||||||
Jaiprakash Associates Ltd.* | 399,463 | 171 | ||||||
Jindal Steel & Power Ltd. | 186,208 | 519 | ||||||
JSW Steel Ltd. | 40,397 | 754 | ||||||
Larsen & Toubro Ltd. | 142,959 | 3,363 | ||||||
Larsen & Toubro Ltd. GDR (Registered) | 7,050 | 165 | ||||||
LIC Housing Finance Ltd. | 131,842 | 693 | ||||||
Mahindra & Mahindra Financial | ||||||||
Services Ltd. | 121,618 | 536 | ||||||
Mahindra & Mahindra Ltd. | 164,175 | 3,611 | ||||||
Nestle India Ltd. | 12,068 | 1,166 | ||||||
NTPC Ltd. | 783,238 | 1,759 | ||||||
Oil & Natural Gas Corp. Ltd. | 355,744 | 2,353 | ||||||
Oil India Ltd. | 55,813 | 550 | ||||||
Piramal Enterprises Ltd. | 37,487 | 464 | ||||||
Power Finance Corp. Ltd. | 107,390 | 406 | ||||||
Power Grid Corp. of India Ltd. | 347,102 | 760 | ||||||
Ranbaxy Laboratories Ltd.* | 70,238 | 726 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 18 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.6% – continued | ||||||||
India – 6.8% – continued | ||||||||
Reliance Capital Ltd. | 45,668 | $335 | ||||||
Reliance Communications Ltd.* | 402,834 | 643 | ||||||
Reliance Industries Ltd. | 501,904 | 7,662 | ||||||
Reliance Industries Ltd. GDR(1) (2) | 60,826 | 1,855 | ||||||
Reliance Infrastructure Ltd. | 55,302 | 522 | ||||||
Reliance Power Ltd.* | 303,108 | 344 | ||||||
Rural Electrification Corp. Ltd. | 140,938 | 568 | ||||||
Sesa Sterlite Ltd. | 561,956 | 2,470 | ||||||
Shriram Transport Finance Co. Ltd. | 66,107 | 998 | ||||||
Siemens Ltd. | 39,800 | 531 | ||||||
State Bank of India | 72,674 | 2,868 | ||||||
Sun Pharmaceutical Industries Ltd. | 345,176 | 4,778 | ||||||
Tata Consultancy Services Ltd. | 226,721 | 10,053 | ||||||
Tata Motors Ltd. | 324,702 | 2,644 | ||||||
Tata Motors Ltd. ADR | 6,700 | 293 | ||||||
Tata Power Co. Ltd. | 523,318 | 703 | ||||||
Tata Steel Ltd. | 128,941 | 955 | ||||||
Tech Mahindra Ltd. | 28,763 | 1,160 | ||||||
Ultratech Cement Ltd. | 17,425 | 742 | ||||||
United Breweries Ltd. | 30,869 | 356 | ||||||
United Spirits Ltd. | 17,217 | 670 | ||||||
Wipro Ltd. | 281,045 | 2,716 | ||||||
Wipro Ltd. ADR | 25,040 | 304 | ||||||
133,772 | ||||||||
Indonesia – 2.6% | ||||||||
Adaro Energy Tbk PT | 7,010,520 | 676 | ||||||
Astra Agro Lestari Tbk PT | 217,222 | 410 | ||||||
Astra International Tbk PT | 9,739,660 | 5,638 | ||||||
Bank Central Asia Tbk PT | 5,918,792 | 6,352 | ||||||
Bank Danamon Indonesia Tbk PT | 1,631,443 | 523 | ||||||
Bank Mandiri Persero Tbk PT | 4,383,255 | 3,606 | ||||||
Bank Negara Indonesia Persero Tbk PT | 3,355,809 | 1,516 | ||||||
Bank Rakyat Indonesia Persero Tbk PT | 5,280,558 | 4,487 | ||||||
Bumi Serpong Damai PT | 3,245,200 | 411 | ||||||
Charoen Pokphand Indonesia Tbk PT | 3,610,735 | 1,257 | ||||||
Global Mediacom Tbk PT | 3,327,200 | 530 | ||||||
Gudang Garam Tbk PT | 241,915 | 1,124 | ||||||
Indo Tambangraya Megah Tbk PT | 186,678 | 396 | ||||||
Indocement Tunggal Prakarsa Tbk PT | 721,803 | 1,277 | ||||||
Indofood CBP Sukses Makmur Tbk PT | 551,700 | 512 | ||||||
Indofood Sukses Makmur Tbk PT | 2,144,171 | 1,228 | ||||||
Jasa Marga Persero Tbk PT | 1,135,000 | 601 | ||||||
Kalbe Farma Tbk PT | 10,117,480 | 1,408 | ||||||
Lippo Karawaci Tbk PT | 9,764,000 | 753 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.6% – continued | ||||||||
Indonesia – 2.6% – continued | ||||||||
Matahari Department Store Tbk PT | 905,873 | $1,207 | ||||||
Media Nusantara Citra Tbk PT | 2,335,500 | 612 | ||||||
Perusahaan Gas Negara Persero Tbk PT | 5,332,312 | 2,618 | ||||||
Semen Indonesia Persero Tbk PT | 1,327,255 | 1,678 | ||||||
Surya Citra Media Tbk PT | 2,071,400 | 650 | ||||||
Tambang Batubara Bukit Asam Persero Tbk PT | 443,000 | 479 | ||||||
Telekomunikasi Indonesia Persero Tbk PT | 23,953,962 | 5,738 | ||||||
Tower Bersama Infrastructure Tbk PT | 765,900 | 503 | ||||||
Unilever Indonesia Tbk PT | 758,028 | 1,972 | ||||||
United Tractors Tbk PT | 822,371 | 1,344 | ||||||
XL Axiata Tbk PT | 1,614,960 | 820 | ||||||
50,326 | ||||||||
Malaysia – 3.8% | ||||||||
AirAsia Bhd. | 698,300 | 539 | ||||||
Alliance Financial Group Bhd. | 538,600 | 819 | ||||||
AMMB Holdings Bhd. | 924,037 | 1,932 | ||||||
Astro Malaysia Holdings Bhd. | 772,600 | 788 | ||||||
Axiata Group Bhd. | 1,175,325 | 2,511 | ||||||
Berjaya Sports Toto Bhd. | 371,806 | 433 | ||||||
British American Tobacco Malaysia Bhd. | 55,600 | 1,196 | ||||||
Bumi Armada Bhd. | 973,400 | 563 | ||||||
CIMB Group Holdings Bhd. | 2,382,629 | 5,106 | ||||||
Dialog Group Bhd. | 1,517,644 | 795 | ||||||
DiGi.Com Bhd. | 1,513,100 | 2,704 | ||||||
Felda Global Ventures Holdings Bhd. | 660,400 | 711 | ||||||
Gamuda Bhd. | 884,000 | 1,299 | ||||||
Genting Bhd. | 956,400 | 2,766 | ||||||
Genting Malaysia Bhd. | 1,444,900 | 1,841 | ||||||
Genting Plantations Bhd. | 129,900 | 393 | ||||||
Hong Leong Bank Bhd. | 289,140 | 1,289 | ||||||
Hong Leong Financial Group Bhd. | 79,200 | 424 | ||||||
IHH Healthcare Bhd. | 1,178,900 | 1,826 | ||||||
IJM Corp. Bhd. | 565,220 | 1,115 | ||||||
IOI Corp. Bhd. | 1,440,340 | 2,111 | ||||||
IOI Properties Group Bhd. | 761,613 | 608 | ||||||
Kuala Lumpur Kepong Bhd. | 239,650 | 1,540 | ||||||
Lafarge Malaysia Bhd. | 178,600 | 560 | ||||||
Malayan Banking Bhd. | 2,123,876 | 6,449 | ||||||
Malaysia Airports Holdings Bhd. | 280,972 | 641 | ||||||
Maxis Bhd. | 926,651 | 1,831 | ||||||
MISC Bhd. | 542,760 | 1,117 | ||||||
MMC Corp. Bhd. | 431,875 | 313 | ||||||
Petronas Chemicals Group Bhd. | 1,299,600 | 2,473 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 19 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
EMERGING MARKETS EQUITY INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.6% – continued | ||||||||
Malaysia – 3.8% – continued | ||||||||
Petronas Dagangan Bhd. | 126,600 | $772 | ||||||
Petronas Gas Bhd. | 327,800 | 2,294 | ||||||
PPB Group Bhd. | 242,600 | 1,050 | ||||||
Public Bank Bhd. | 1,299,761 | 7,488 | ||||||
RHB Capital Bhd. | 233,103 | 628 | ||||||
SapuraKencana Petroleum Bhd. | 1,654,700 | 2,079 | ||||||
Sime Darby Bhd. | 1,434,764 | 4,002 | ||||||
Telekom Malaysia Bhd. | 556,463 | 1,118 | ||||||
Tenaga Nasional Bhd. | 1,352,950 | 5,104 | ||||||
UEM Sunrise Bhd. | 843,917 | 467 | ||||||
UMW Holdings Bhd. | 271,500 | 1,015 | ||||||
YTL Corp. Bhd. | 2,079,980 | 1,064 | ||||||
YTL Power International Bhd. * | 629,813 | 315 | ||||||
74,089 | ||||||||
Mexico – 5.3% | ||||||||
Alfa S.A.B. de C.V., Series A | 1,325,180 | 4,559 | ||||||
America Movil S.A.B. de C.V., Series L | 16,449,182 | 20,735 | ||||||
Arca Continental S.A.B. de C.V. | 195,484 | 1,342 | ||||||
Cemex Latam Holdings S.A. * | 81,222 | 722 | ||||||
Cemex S.A.B. de C.V., Series CPO * | 5,645,779 | 7,356 | ||||||
Coca-Cola Femsa S.A.B. de C.V., Series L | 204,522 | 2,062 | ||||||
Compartamos S.A.B. de C.V. | 553,272 | 1,184 | ||||||
Controladora Comercial Mexicana S.A.B.de C.V., Series UBC | 202,600 | 759 | ||||||
El Puerto de Liverpool S.A.B. de C.V., Series C1 | 97,000 | 1,122 | ||||||
Fibra Uno Administracion S.A. de C.V. | 981,000 | 3,227 | ||||||
Fomento Economico Mexicano S.A.B. de C.V., Series UBD | 936,977 | 8,617 | ||||||
Genomma Lab Internacional S.A.B. de C.V., Series B * | 402,700 | 965 | ||||||
Gruma S.A.B. de C.V., Series B * | 78,280 | 838 | ||||||
Grupo Aeroportuario del Pacifico S.A.B.de C.V., Series B | 150,952 | 1,017 | ||||||
Grupo Aeroportuario del Sureste S.A.B. de C.V., Series B | 91,000 | 1,174 | ||||||
Grupo Bimbo S.A.B. de C.V., Series A | 802,628 | 2,327 | ||||||
Grupo Carso S.A.B. de C.V., Series A1 | 279,706 | 1,634 | ||||||
Grupo Comercial Chedraui S.A. de C.V. | 182,800 | 646 | ||||||
Grupo Financiero Banorte S.A.B. de C.V., Series O | 1,201,818 | 7,697 | ||||||
Grupo Financiero Inbursa S.A.B. de C.V., Series O | 1,102,943 | 3,154 | ||||||
Grupo Financiero Santander Mexico S.A.B. de C.V., Series B | 851,300 | 2,304 | ||||||
Grupo Lala S.A.B. de C.V. | 268,280 | 657 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.6% – continued | ||||||||
Mexico – 5.3% – continued | ||||||||
Grupo Mexico S.A.B. de C.V., Series B | 1,802,536 | $6,057 | ||||||
Grupo Televisa S.A.B., Series CPO | 1,240,814 | 8,421 | ||||||
Industrias Penoles S.A.B. de C.V. | 68,687 | 1,575 | ||||||
Kimberly-Clark de Mexico S.A.B. de C.V., Series A | 711,427 | 1,679 | ||||||
Mexichem S.A.B. de C.V. | 455,034 | 1,895 | ||||||
Minera Frisco S.A.B. de C.V., Series A1 * | 313,206 | 576 | ||||||
OHL Mexico S.A.B. de C.V. * | 348,700 | 946 | ||||||
Promotora y Operadora de Infraestructura S.A.B. de C.V. * | 131,300 | 1,797 | ||||||
Wal-Mart de Mexico S.A.B. de C.V., Series V | 2,547,537 | 6,411 | ||||||
103,455 | ||||||||
Peru – 0.4% | ||||||||
Cia de Minas Buenaventura S.A.A. ADR | 97,106 | 1,124 | ||||||
Credicorp Ltd. | 32,152 | 4,932 | ||||||
Southern Copper Corp. | 77,027 | 2,284 | ||||||
8,340 | ||||||||
Philippines – 1.1% | ||||||||
Aboitiz Equity Ventures, Inc. | 970,599 | 1,166 | ||||||
Aboitiz Power Corp. | 694,944 | 631 | ||||||
Alliance Global Group, Inc. | 997,824 | 578 | ||||||
Ayala Corp. | 91,217 | 1,504 | ||||||
Ayala Land, Inc. | 3,290,180 | 2,563 | ||||||
Bank of the Philippine Islands | 381,223 | 832 | ||||||
BDO Unibank, Inc. | 635,246 | 1,387 | ||||||
DMCI Holdings, Inc. | 398,060 | 699 | ||||||
Energy Development Corp. | 3,558,950 | 642 | ||||||
Globe Telecom, Inc. | 16,490 | 597 | ||||||
International Container Terminal Services, Inc. | 258,680 | 636 | ||||||
JG Summit Holdings, Inc. | 1,208,101 | 1,559 | ||||||
Jollibee Foods Corp. | 211,083 | 922 | ||||||
Megaworld Corp. | 5,366,000 | 600 | ||||||
Metro Pacific Investments Corp. | 5,488,000 | 599 | ||||||
Metropolitan Bank & Trust Co. | 153,259 | 296 | ||||||
Philippine Long Distance Telephone Co. | 43,520 | 3,003 | ||||||
SM Investments Corp. | 72,895 | 1,304 | ||||||
SM Prime Holdings, Inc. | 2,978,413 | 1,160 | ||||||
Universal Robina Corp. | 387,230 | 1,615 | ||||||
22,293 | ||||||||
Poland – 1.6% | ||||||||
Alior Bank S.A. * | 21,413 | 548 | ||||||
Bank Handlowy w Warszawie S.A. | 15,809 | 596 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 20 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.6% – continued | ||||||||
Poland – 1.6% – continued | ||||||||
Bank Millennium S.A. | 207,307 | $548 | ||||||
Bank Pekao S.A. | 61,530 | 3,609 | ||||||
Bank Zachodni WBK S.A. | 14,079 | 1,680 | ||||||
Cyfrowy Polsat S.A. | 82,277 | 687 | ||||||
Enea S.A. | 108,314 | 529 | ||||||
Energa S.A. | 104,722 | 759 | ||||||
Eurocash S.A. | 38,785 | 377 | ||||||
Getin Noble Bank S.A. * | 580,584 | 492 | ||||||
Grupa Azoty S.A. | 22,371 | 418 | ||||||
Grupa Lotos S.A. * | 34,811 | 296 | ||||||
Jastrzebska Spolka Weglowa S.A. * | 22,620 | 220 | ||||||
KGHM Polska Miedz S.A. | 67,121 | 2,565 | ||||||
LPP S.A. | 381 | 1,135 | ||||||
mBank | 6,440 | 954 | ||||||
Orange Polska S.A. | 330,800 | 1,163 | ||||||
PGE S.A. | 378,488 | 2,394 | ||||||
Polski Koncern Naftowy Orlen S.A. | 155,985 | 1,936 | ||||||
Polskie Gornictwo Naftowe i Gazownictwo S.A. | 849,300 | 1,296 | ||||||
Powszechna Kasa Oszczednosci Bank Polski S.A. | 422,719 | 5,048 | ||||||
Powszechny Zaklad Ubezpieczen S.A. | 26,324 | 3,818 | ||||||
Synthos S.A. | 287,733 | 399 | ||||||
Tauron Polska Energia S.A. | 529,894 | 858 | ||||||
32,325 | ||||||||
Qatar – 0.6% | ||||||||
Barwa Real Estate Co. | 44,753 | 492 | ||||||
Commercial Bank of Qatar (The) QSC | 17,919 | 345 | ||||||
Doha Bank QSC * | 15,299 | 243 | ||||||
Industries Qatar QSC | 35,368 | 1,807 | ||||||
Masraf Al Rayan | 176,761 | 2,702 | ||||||
Ooredoo QSC | 38,537 | 1,399 | ||||||
Qatar Electricity & Water Co. | 13,150 | 687 | ||||||
Qatar Islamic Bank SAQ | 23,708 | 735 | ||||||
Qatar National Bank SAQ | 42,336 | 2,353 | ||||||
Vodafone Qatar | 161,204 | 940 | ||||||
11,703 | ||||||||
Russia – 4.2% | ||||||||
Alrosa AO | 851,651 | 764 | ||||||
Gazprom OAO | 1,181,361 | 4,102 | ||||||
Gazprom OAO ADR | 2,255,100 | 15,798 | ||||||
Lukoil OAO | 66,457 | 3,376 | ||||||
Lukoil OAO ADR (London Exchange) | 165,485 | 8,409 | ||||||
Lukoil OAO ADR (OTC Exchange) | 11,873 | 604 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.6% – continued | ||||||||
Russia – 4.2% – continued | ||||||||
Magnit OJSC | 3,011 | $754 | ||||||
Magnit OJSC GDR (Registered) | 121,986 | 7,038 | ||||||
MegaFon OAO GDR (Registered) | 44,587 | 1,131 | ||||||
MMC Norilsk Nickel OJSC | 12,682 | 2,339 | ||||||
MMC Norilsk Nickel OJSC ADR (London Exchange) | 56,727 | 1,053 | ||||||
MMC Norilsk Nickel OJSC ADR (OTC Exchange) | 80,388 | 1,494 | ||||||
Mobile Telesystems OJSC ADR | 244,550 | 3,654 | ||||||
Moscow Exchange MICEX-RTS OAO | 564,826 | 833 | ||||||
NOVATEK OAO GDR (Registered) | 43,836 | 4,566 | ||||||
Rosneft OAO | 150,504 | 882 | ||||||
Rosneft OAO GDR (Registered) | 395,121 | 2,300 | ||||||
Rostelecom OJSC | 397,344 | 1,052 | ||||||
RusHydro JSC | 29,671,245 | 526 | ||||||
RusHydro JSC ADR | 266,069 | 476 | ||||||
Sberbank of Russia | 5,153,240 | 9,790 | ||||||
Sberbank of Russia | 56,000 | 107 | ||||||
Severstal OAO | 22,803 | 226 | ||||||
Severstal OAO GDR (Registered) | 82,609 | 824 | ||||||
Sistema JSFC GDR (Registered) | 81,873 | 563 | ||||||
Surgutneftegas OAO | 1,147,823 | 755 | ||||||
Surgutneftegas OAO ADR (London Exchange) | 93,244 | 621 | ||||||
Surgutneftegas OAO ADR (OTC Exchange) | 120,622 | 798 | ||||||
Tatneft OAO | 285,702 | 1,674 | ||||||
Tatneft OAO ADR (Frankfurt Exchange) | 1,663 | 59 | ||||||
Tatneft OAO ADR (London Exchange) | 62,512 | 2,204 | ||||||
Uralkali OJSC | 468,090 | 1,651 | ||||||
Uralkali OJSC GDR (Registered) | 31,490 | 558 | ||||||
VTB Bank OJSC | 1,831,532,372 | 1,750 | ||||||
VTB Bank OJSC GDR (1)(2) | 11,036 | 21 | ||||||
VTB Bank OJSC GDR (Registered) | 299,452 | 592 | ||||||
83,344 | ||||||||
South Africa – 7.1% | ||||||||
African Bank Investments Ltd. | 213,004 | 6 | ||||||
African Rainbow Minerals Ltd. | 56,523 | 715 | ||||||
Anglo American Platinum Ltd. * | 26,184 | 849 | ||||||
AngloGold Ashanti Ltd. * | 189,614 | 2,300 | ||||||
Aspen Pharmacare Holdings Ltd. | 154,507 | 4,591 | ||||||
Assore Ltd. | 17,197 | 326 | ||||||
Barclays Africa Group Ltd. | 165,367 | 2,252 | ||||||
Barloworld Ltd. | 112,372 | 920 | ||||||
Bidvest Group Ltd. | 149,738 | 3,784 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 21 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
EMERGING MARKETS EQUITY INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.6% – continued | ||||||||
South Africa – 7.1% – continued | ||||||||
Brait S.E. * | 124,029 | $801 | ||||||
Coronation Fund Managers Ltd. | 105,931 | 906 | ||||||
Discovery Ltd. | 151,816 | 1,320 | ||||||
Exxaro Resources Ltd. | 72,768 | 826 | ||||||
FirstRand Ltd. | 1,480,289 | 5,625 | ||||||
Foschini Group (The) Ltd. | 94,346 | 978 | ||||||
Gold Fields Ltd. | 390,550 | 1,522 | ||||||
Growthpoint Properties Ltd. | 1,013,459 | 2,211 | ||||||
Harmony Gold Mining Co. Ltd. * | 189,825 | 413 | ||||||
Impala Platinum Holdings Ltd. * | 251,935 | 1,937 | ||||||
Imperial Holdings Ltd. | 91,546 | 1,411 | ||||||
Investec Ltd. | 120,974 | 1,016 | ||||||
Kumba Iron Ore Ltd. | 31,173 | 734 | ||||||
Liberty Holdings Ltd. | 61,876 | 675 | ||||||
Life Healthcare Group Holdings Ltd. | 456,781 | 1,799 | ||||||
Massmart Holdings Ltd. | 52,519 | 571 | ||||||
Mediclinic International Ltd. | 179,222 | 1,458 | ||||||
MMI Holdings Ltd. | 480,463 | 1,116 | ||||||
Mr. Price Group Ltd. | 117,365 | 2,203 | ||||||
MTN Group Ltd. | 808,513 | 17,039 | ||||||
Nampak Ltd. | 303,345 | 1,106 | ||||||
Naspers Ltd., Class N | 189,601 | 20,853 | ||||||
Nedbank Group Ltd. | 93,065 | 1,801 | ||||||
Netcare Ltd. | 488,064 | 1,365 | ||||||
Northam Platinum Ltd. * | 148,732 | 481 | ||||||
Pick n Pay Stores Ltd. | 129,728 | 606 | ||||||
PPC Ltd. | 240,247 | 629 | ||||||
Rand Merchant Insurance Holdings Ltd. | 325,036 | 1,021 | ||||||
Redefine Properties Ltd. | 1,345,840 | 1,159 | ||||||
Remgro Ltd. | 228,688 | 4,611 | ||||||
RMB Holdings Ltd. | 341,971 | 1,712 | ||||||
Sanlam Ltd. | 853,058 | 4,937 | ||||||
Sappi Ltd. * | 251,030 | 990 | ||||||
Sasol Ltd. | 264,199 | 14,334 | ||||||
Shoprite Holdings Ltd. | 213,184 | 2,639 | ||||||
SPAR Group (The) Ltd. | 84,419 | 938 | ||||||
Standard Bank Group Ltd. | 584,858 | 6,752 | ||||||
Steinhoff International Holdings Ltd. | 996,125 | 4,769 | ||||||
Tiger Brands Ltd. | 75,386 | 2,106 | ||||||
Truworths International Ltd. | 182,967 | 1,100 | ||||||
Vodacom Group Ltd. | 184,281 | 2,120 | ||||||
Woolworths Holdings Ltd. | 461,440 | 2,859 | ||||||
139,192 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.6% – continued | ||||||||
South Korea – 13.8% | ||||||||
Amorepacific Corp. | 1,607 | $3,642 | ||||||
AMOREPACIFIC Group | 1,341 | 1,483 | ||||||
BS Financial Group, Inc. | 86,873 | 1,391 | ||||||
Celltrion, Inc. | 30,165 | 1,398 | ||||||
Cheil Worldwide, Inc. * | 37,350 | 790 | ||||||
CJ CheilJedang Corp. | 3,946 | 1,447 | ||||||
CJ Corp. | 7,441 | 1,227 | ||||||
Coway Co. Ltd. | 24,884 | 1,981 | ||||||
Daelim Industrial Co. Ltd. | 11,847 | 844 | ||||||
Daewoo Engineering & Construction Co. Ltd. * | 45,860 | 333 | ||||||
Daewoo International Corp. | 22,968 | 816 | ||||||
Daewoo Securities Co. Ltd. * | 80,958 | 823 | ||||||
Daewoo Shipbuilding & Marine Engineering Co. Ltd. | 46,550 | 893 | ||||||
DGB Financial Group, Inc. | 67,590 | 1,075 | ||||||
Dongbu Insurance Co. Ltd. | 18,837 | 1,059 | ||||||
Doosan Corp. | 2,990 | 293 | ||||||
Doosan Heavy Industries & Construction Co. Ltd. | 29,102 | 718 | ||||||
Doosan Infracore Co. Ltd. * | 66,360 | 697 | ||||||
E-Mart Co. Ltd. | 9,548 | 2,086 | ||||||
GS Engineering & Construction Corp. * | 22,832 | 787 | ||||||
GS Holdings | 26,023 | 994 | ||||||
Halla Visteon Climate Control Corp. | 18,060 | 876 | ||||||
Hana Financial Group, Inc. | 136,843 | 4,947 | ||||||
Hankook Tire Co. Ltd. | 36,976 | 1,803 | ||||||
Hanwha Chemical Corp. | 52,642 | 682 | ||||||
Hanwha Corp. | 22,395 | 624 | ||||||
Hanwha Life Insurance Co. Ltd. | 104,150 | 699 | ||||||
Hite Jinro Co. Ltd. | 15,340 | 336 | ||||||
Hotel Shilla Co. Ltd. | 15,801 | 1,790 | ||||||
Hyosung Corp. | 12,182 | 865 | ||||||
Hyundai Department Store Co. Ltd. | 7,608 | 1,150 | ||||||
Hyundai Development Co.-Engineering & Construction | 28,090 | 1,131 | ||||||
Hyundai Engineering & Construction Co. Ltd. | 33,004 | 1,882 | ||||||
Hyundai Glovis Co. Ltd. | 6,338 | 1,933 | ||||||
Hyundai Heavy Industries Co. Ltd. | 19,647 | 2,555 | ||||||
Hyundai Marine & Fire Insurance Co. Ltd. | 31,510 | 869 | ||||||
Hyundai Merchant Marine Co. Ltd. * | 37,149 | 340 | ||||||
Hyundai Mipo Dockyard | 5,400 | 633 | ||||||
Hyundai Mobis Co. Ltd. | 32,835 | 8,001 | ||||||
Hyundai Motor Co. | 73,677 | 13,287 | ||||||
Hyundai Steel Co. | 34,340 | 2,391 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 22 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.6% – continued | ||||||||
South Korea – 13.8% – continued | ||||||||
Hyundai Wia Corp. | 7,863 | $1,590 | ||||||
Industrial Bank of Korea | 107,740 | 1,608 | ||||||
Kangwon Land, Inc. | 55,000 | 1,865 | ||||||
KB Financial Group, Inc. | 184,374 | 6,717 | ||||||
KCC Corp. | 2,429 | 1,650 | ||||||
Kia Motors Corp. | 125,203 | 6,361 | ||||||
Korea Aerospace Industries Ltd. | 19,320 | 745 | ||||||
Korea Electric Power Corp. | 121,736 | 5,520 | ||||||
Korea Gas Corp. * | 13,474 | 702 | ||||||
Korea Investment Holdings Co. Ltd. | 16,410 | 861 | ||||||
Korea Zinc Co. Ltd. | 3,801 | 1,399 | ||||||
Korean Air Lines Co. Ltd. * | 13,368 | 455 | ||||||
KT Corp. | 31,029 | 1,010 | ||||||
KT Corp. ADR | 6,526 | 106 | ||||||
KT&G Corp. | 51,853 | 4,641 | ||||||
Kumho Petro chemical Co. Ltd. | 6,504 | 429 | ||||||
LG Chem Ltd. | 22,053 | 5,333 | ||||||
LG Corp. | 43,334 | 3,151 | ||||||
LG Display Co. Ltd. * | 108,870 | 3,451 | ||||||
LG Electronics, Inc. | 51,943 | 3,229 | ||||||
LG Household & Health Care Ltd. | 4,625 | 2,204 | ||||||
LG Innotek Co. Ltd. * | 5,984 | 651 | ||||||
LG Uplus Corp. | 107,042 | 1,246 | ||||||
Lotte Chemical Corp. | 7,155 | 951 | ||||||
Lotte Confectionery Co. Ltd. | 334 | 690 | ||||||
Lotte Shopping Co. Ltd. | 5,456 | 1,622 | ||||||
LS Corp. | 8,565 | 539 | ||||||
LS Industrial Systems Co. Ltd. | 8,625 | 479 | ||||||
Mirae Asset Securities Co. Ltd. | 9,515 | 398 | ||||||
NAVER Corp. | 13,494 | 10,233 | ||||||
NCSoft Corp. | 7,579 | 965 | ||||||
OCI Co. Ltd. * | 8,243 | 1,016 | ||||||
Orion Corp. | 1,773 | 1,469 | ||||||
Paradise Co. Ltd. | 16,859 | 552 | ||||||
POSCO | 30,031 | 9,204 | ||||||
POSCO ADR | 5,928 | 450 | ||||||
S-1 Corp. | 8,165 | 627 | ||||||
Samsung C&T Corp. | 59,291 | 4,250 | ||||||
Samsung Card Co. Ltd. | 16,282 | 799 | ||||||
Samsung Electro-Mechanics Co. Ltd. | 29,710 | 1,394 | ||||||
Samsung Electronics Co. Ltd. | 53,005 | 59,339 | ||||||
Samsung Engineering Co. Ltd. * | 12,917 | 735 | ||||||
Samsung Fire & Marine Insurance Co. Ltd. | 16,038 | 4,265 | ||||||
Samsung Heavy Industries Co. Ltd. | 80,480 | 1,923 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.6% – continued | ||||||||
South Korea – 13.8% – continued | ||||||||
Samsung Life Insurance Co. Ltd. | 28,040 | $2,817 | ||||||
Samsung SDI Co. Ltd. | 27,137 | 3,143 | ||||||
Samsung Securities Co. Ltd. | 31,005 | 1,293 | ||||||
Samsung Techwin Co. Ltd. | 18,261 | 610 | ||||||
Shinhan Financial Group Co. Ltd. | 205,520 | 9,387 | ||||||
Shinsegae Co. Ltd. | 3,406 | 708 | ||||||
SK C&C Co. Ltd. | 9,630 | 2,211 | ||||||
SK Holdings Co. Ltd. | 12,718 | 2,264 | ||||||
SK Hynix, Inc. * | 272,070 | 12,042 | ||||||
SK Innovation Co. Ltd. | 28,331 | 2,166 | ||||||
SK Networks Co. Ltd. * | 44,300 | 444 | ||||||
SK Telecom Co. Ltd. | 3,695 | 1,015 | ||||||
SK Telecom Co. Ltd. ADR | 10,300 | 313 | ||||||
S-Oil Corp. | 22,253 | 900 | ||||||
Woori Finance Holdings Co. Ltd. | 152,226 | 1,885 | ||||||
Woori Investment & Securities Co. Ltd. | 55,017 | 614 | ||||||
Yuhan Corp. | 3,806 | 669 | ||||||
270,876 | ||||||||
Taiwan – 11.5% | ||||||||
Acer, Inc.– * | 1,263,796 | 888 | ||||||
Advanced Semiconductor Engineering, Inc. | 2,937,364 | 3,429 | ||||||
Advantech Co. Ltd. | 154,234 | 1,091 | ||||||
Asia Cement Corp. | 1,057,567 | 1,351 | ||||||
Asia Pacific Telecom Co. Ltd. | 905,000 | 527 | ||||||
Asustek Computer, Inc. | 335,546 | 3,194 | ||||||
AU Optronics Corp. | 4,253,215 | 1,796 | ||||||
Catcher Technology Co. Ltd. | 306,111 | 2,830 | ||||||
Cathay Financial Holding Co. Ltd. | 3,913,075 | 6,358 | ||||||
Chailease Holding Co. Ltd. | 478,720 | 1,162 | ||||||
Chang Hwa Commercial Bank Ltd. | 2,306,386 | 1,413 | ||||||
Cheng Shin Rubber Industry Co. Ltd. | 790,184 | 1,742 | ||||||
Chicony Electronics Co. Ltd. | 232,349 | 694 | ||||||
China Airlines Ltd. * | 1,147,307 | 385 | ||||||
China Development Financial Holding Corp. | 6,178,868 | 1,893 | ||||||
China Life Insurance Co. Ltd. | 1,468,954 | 1,210 | ||||||
China Motor Corp. | 328,000 | 292 | ||||||
China Steel Corp. | 5,543,156 | 4,734 | ||||||
Chunghwa Telecom Co. Ltd. | 1,803,493 | 5,433 | ||||||
Clevo Co. | 165,970 | 293 | ||||||
Compal Electronics, Inc. | 2,044,759 | 1,529 | ||||||
CTBC Financial Holding Co. Ltd. | 6,389,025 | 4,289 | ||||||
CTCI Corp. | 316,000 | 538 | ||||||
Delta Electronics, Inc. | 874,521 | 5,523 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 23 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
EMERGING MARKETS EQUITY INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.6% – continued | ||||||||
Taiwan – 11.5% – continued | ||||||||
E.Sun Financial Holding Co. Ltd. | 3,101,952 | $1,879 | ||||||
Eclat Textile Co. Ltd. | 85,662 | 778 | ||||||
Epistar Corp. | 419,351 | 784 | ||||||
Eva Airways Corp. * | 716,271 | 379 | ||||||
Evergreen Marine Corp. Taiwan Ltd. * | 795,795 | 466 | ||||||
Far Eastern Department Stores Ltd. | 568,509 | 548 | ||||||
Far Eastern New Century Corp. | 1,547,127 | 1,557 | ||||||
Far EasTone Telecommunications Co. Ltd. | 775,345 | 1,486 | ||||||
Farglory Land Development Co. Ltd. | 201,543 | 237 | ||||||
First Financial Holding Co. Ltd. | 3,554,974 | 2,142 | ||||||
Formosa Chemicals & Fibre Corp. | 1,505,499 | 3,481 | ||||||
Formosa International Hotels Corp. | 23,623 | 251 | ||||||
Formosa Petrochemical Corp. | 551,487 | 1,337 | ||||||
Formosa Plastics Corp. | 1,964,682 | 4,653 | ||||||
Formosa Taffeta Co. Ltd. | 412,827 | 405 | ||||||
Foxconn Technology Co. Ltd. | 447,398 | 1,107 | ||||||
Fubon Financial Holding Co. Ltd. | 3,140,025 | 4,812 | ||||||
Giant Manufacturing Co. Ltd. | 142,483 | 1,111 | ||||||
Hermes Microvision, Inc. | 18,000 | 753 | ||||||
Highwealth Construction Corp. | 267,300 | 427 | ||||||
Hiwin Technologies Corp. | 95,430 | 851 | ||||||
Hon Hai Precision Industry Co. Ltd. | 6,007,254 | 18,916 | ||||||
Hotai Motor Co. Ltd. | 120,900 | 1,647 | ||||||
HTC Corp. * | 320,220 | 1,391 | ||||||
Hua Nan Financial Holdings Co. Ltd. | 2,719,978 | 1,586 | ||||||
Innolux Corp. | 3,512,900 | 1,514 | ||||||
Inotera Memories, Inc. * | 1,008,546 | 1,488 | ||||||
Inventec Corp. | 1,136,314 | 740 | ||||||
Kinsus Interconnect Technology Corp. | 144,587 | 536 | ||||||
Largan Precision Co. Ltd. | 47,835 | 3,414 | ||||||
Lite-On Technology Corp. | 1,015,466 | 1,463 | ||||||
MediaTek, Inc. | 680,334 | 10,080 | ||||||
Mega Financial Holding Co. Ltd. | 4,674,771 | 3,829 | ||||||
Merida Industry Co. Ltd. | 102,900 | 717 | ||||||
Nan Ya Plastics Corp. | 2,261,951 | 4,947 | ||||||
Novatek Microelectronics Corp. | 263,850 | 1,305 | ||||||
Pegatron Corp. | 704,594 | 1,293 | ||||||
Phison Electronics Corp. | 61,608 | 430 | ||||||
Pou Chen Corp. | 1,004,093 | 1,115 | ||||||
Powertech Technology, Inc. * | 364,568 | 659 | ||||||
President Chain Store Corp. | 280,220 | 2,007 | ||||||
Quanta Computer, Inc. | 1,301,576 | 3,302 | ||||||
Radiant Opto-Electronics Corp. | 221,800 | 879 | ||||||
Realtek Semiconductor Corp. | 229,457 | 816 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.6% – continued | ||||||||
Taiwan – 11.5% – continued | ||||||||
Ruentex Development Co. Ltd. | 339,562 | $548 | ||||||
Ruentex Industries Ltd. | 257,906 | 573 | ||||||
ScinoPharm Taiwan Ltd. | 117,894 | 242 | ||||||
Shin Kong Financial Holding Co. Ltd. | 3,555,295 | 1,077 | ||||||
Siliconware Precision Industries Co. | 1,344,480 | 1,842 | ||||||
Simplo Technology Co. Ltd. | 133,532 | 645 | ||||||
SinoPac Financial Holdings Co. Ltd. | 3,483,957 | 1,493 | ||||||
Standard Foods Corp. | 181,203 | 408 | ||||||
Synnex Technology International Corp. | 647,086 | 893 | ||||||
Taishin Financial Holding Co. Ltd. | 4,177,117 | 1,954 | ||||||
Taiwan Business Bank * | 1,581,758 | 466 | ||||||
Taiwan Cement Corp. | 1,504,055 | 2,237 | ||||||
Taiwan Cooperative Financial Holding Co. Ltd. | 2,888,243 | 1,558 | ||||||
Taiwan Fertilizer Co. Ltd. | 390,000 | 644 | ||||||
Taiwan Glass Industry Corp. | 431,377 | 357 | ||||||
Taiwan Mobile Co. Ltd. | 771,076 | 2,340 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 11,839,193 | 47,128 | ||||||
Teco Electric and Machinery Co. Ltd. | 986,000 | 1,011 | ||||||
TPK Holding Co. Ltd. | 112,003 | 670 | ||||||
Transcend Information, Inc. | 109,442 | 363 | ||||||
TSRC Corp. | 336,936 | 404 | ||||||
U-Ming Marine Transport Corp. | 233,000 | 354 | ||||||
Unimicron Technology Corp. | 595,418 | 443 | ||||||
Uni-President Enterprises Corp. | 2,146,145 | 3,721 | ||||||
United Microelectronics Corp. | 5,894,043 | 2,442 | ||||||
Vanguard International Semiconductor Corp. | 349,000 | 510 | ||||||
Walsin Lihwa Corp. * | 1,792,770 | 588 | ||||||
Wistron Corp. | 1,123,278 | 1,146 | ||||||
WPG Holdings Ltd. | 703,316 | 861 | ||||||
Ya Hsin Industrial Co. Ltd. (3) * | 121,548 | – | ||||||
Yang Ming Marine Transport Corp. * | 753,356 | 328 | ||||||
Yuanta Financial Holding Co. Ltd. | 3,921,288 | 1,931 | ||||||
Yulon Motor Co. Ltd. | 366,257 | 547 | ||||||
Zhen Ding Technology Holding Ltd. | 122,850 | 355 | ||||||
226,191 | ||||||||
Thailand – 2.2% | ||||||||
Advanced Info Service PCL (Registered) | 194,000 | 1,346 | ||||||
Advanced Info Service PCL NVDR | 292,499 | 2,025 | ||||||
Airports of Thailand PCL NVDR | 210,900 | 1,550 | ||||||
Bangkok Bank PCL (Registered) | 187,600 | 1,210 | ||||||
Bangkok Bank PCL NVDR | 130,000 | 818 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 24 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.6% – continued | ||||||||
Thailand – 2.2% – continued | ||||||||
Bangkok Dusit Medical Services PCL NVDR | 1,407,000 | $801 | ||||||
Banpu PCL (Registered) | 233,500 | 212 | ||||||
Banpu PCL NVDR | 317,880 | 289 | ||||||
BEC World PCL (Registered) | 196,500 | 285 | ||||||
BEC World PCL NVDR | 271,507 | 393 | ||||||
BTS Group Holdings PCL NVDR | 2,670,400 | 823 | ||||||
Bumrungrad Hospital PCL NVDR | 156,987 | 638 | ||||||
Central Pattana PCL NVDR | 650,000 | 930 | ||||||
Charoen Pokphand Foods PCL NVDR | 1,363,457 | 1,269 | ||||||
CP ALL PCL (Registered) | 905,200 | 1,249 | ||||||
CP ALL PCL NVDR | 1,180,036 | 1,627 | ||||||
Glow Energy PCL (Registered) | 87,100 | 256 | ||||||
Glow Energy PCL NVDR | 141,402 | 414 | ||||||
Home Product Center PCL NVDR | 1,435,504 | 459 | ||||||
Indorama Ventures PCL NVDR | 466,547 | 366 | ||||||
IRPC PCL (Registered) | 1,860,900 | 197 | ||||||
IRPC PCL NVDR | 2,732,681 | 289 | ||||||
Kasikornbank PCL | 50,000 | 361 | ||||||
Kasikornbank PCL (Registered) | 141,500 | 1,025 | ||||||
Kasikornbank PCL NVDR | 682,997 | 4,931 | ||||||
Krung Thai Bank PCL (Registered) | 699,750 | 512 | ||||||
Krung Thai Bank PCL NVDR | 921,093 | 671 | ||||||
Minor International PCL NVDR | 741,300 | 846 | ||||||
PTT Exploration & Production PCL (Registered) | 242,500 | 1,197 | ||||||
PTT Exploration & Production PCL NVDR | 417,943 | 2,061 | ||||||
PTT Global Chemical PCL (Registered) | 189,814 | 357 | ||||||
PTT Global Chemical PCL NVDR | 537,576 | 1,011 | ||||||
PTT PCL (Registered) | 183,500 | 2,037 | ||||||
PTT PCL NVDR | 223,300 | 2,475 | ||||||
Siam Cement (The) PCL (Registered) | 51,000 | 704 | ||||||
Siam Cement (The) PCL NVDR | 144,398 | 1,992 | ||||||
Siam Commercial Bank (The) PCL (Registered) | 232,700 | 1,306 | ||||||
Siam Commercial Bank (The) PCL NVDR | 494,976 | 2,772 | ||||||
Thai Oil PCL (Registered) | 97,800 | 155 | ||||||
Thai Oil PCL NVDR | 277,095 | 439 | ||||||
TMB Bank PCL NVDR | 5,939,500 | 561 | ||||||
True Corp. PCL NVDR * | 3,437,654 | 1,260 | ||||||
44,119 | ||||||||
Turkey – 1.5% | ||||||||
Akbank T.A.S. | 833,338 | 2,711 | ||||||
Anadolu Efes Biracilik Ve Malt Sanayii A.S. * | 104,795 | 1,210 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.6% – continued | ||||||||
Turkey – 1.5% – continued | ||||||||
Arcelik A.S. | 111,248 | $593 | ||||||
BIM Birlesik Magazalar A.S. | 104,615 | 2,191 | ||||||
Coca-Cola Icecek A.S. | 33,387 | 720 | ||||||
Dogan Sirketler Grubu Holding A.S. * | 1 | – | ||||||
Emlak Konut Gayrimenkul Yatirim Ortakligi A.S. | 901,679 | 940 | ||||||
Enka Insaat ve Sanayi A.S. | 224,534 | 512 | ||||||
Eregli Demir ve Celik Fabrikalari T.A.S. | 692,624 | 1,285 | ||||||
Ford Otomotiv Sanayi A.S. * | 31,388 | 360 | ||||||
Haci Omer Sabanci Holding A.S. | 449,007 | 1,888 | ||||||
Is Gayrimenkul Yatirim Ortakligi A.S. | 1 | – | ||||||
KOC Holding A.S. | 312,344 | 1,439 | ||||||
Koza Altin Isletmeleri A.S. | 25,703 | 191 | ||||||
TAV Havalimanlari Holding A.S. | 79,215 | 636 | ||||||
Tofas Turk Otomobil Fabrikasi A.S. | 57,218 | 321 | ||||||
Tupras Turkiye Petrol Rafinerileri A.S. | 60,472 | 1,215 | ||||||
Turk Hava Yollari AO * | 280,175 | 795 | ||||||
Turk Telekomunikasyon A.S. | 219,727 | 580 | ||||||
Turkcell Iletisim Hizmetleri A.S. * | 430,045 | 2,248 | ||||||
Turkiye Garanti Bankasi A.S. | 1,099,047 | 3,856 | ||||||
Turkiye Halk Bankasi A.S. | 305,829 | 1,838 | ||||||
Turkiye Is Bankasi, Class C | 736,800 | 1,635 | ||||||
Turkiye Sise ve Cam Fabrikalari A.S. | 305,231 | 388 | ||||||
Turkiye Vakiflar Bankasi Tao, Class D | 370,249 | 685 | ||||||
Ulker Biskuvi Sanayi A.S. | 61,632 | 409 | ||||||
Yapi ve Kredi Bankasi A.S. | 426,471 | 836 | ||||||
29,482 | ||||||||
United Arab Emirates – 0.6% | ||||||||
Abu Dhabi Commercial Bank PJSC | 536,335 | 1,236 | ||||||
Aldar Properties PJSC | 1,484,700 | 1,579 | ||||||
Arabtec Holding Co. * | 524,156 | 653 | ||||||
DP World Ltd. | 80,006 | 1,660 | ||||||
Dubai Financial Market | 952,297 | 868 | ||||||
Dubai Islamic Bank PJSC | 249,332 | 561 | ||||||
Emaar Properties PJSC | 852,878 | 2,673 | ||||||
First Gulf Bank PJSC | 206,771 | 1,052 | ||||||
National Bank of Abu Dhabi PJSC | 296,156 | 1,165 | ||||||
11,447 | ||||||||
Total Common Stocks (4) | ||||||||
(Cost $1,456,313) | 1,782,000 | |||||||
PREFERRED STOCKS – 5.5% | ||||||||
Brazil – 4.2% | ||||||||
AES Tiete S.A. | 58,353 | 503 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 25 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
EMERGING MARKETS EQUITY INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
PREFERRED STOCKS – 5.5% – continued | ||||||||
Brazil – 4.2% – continued | ||||||||
Banco Bradesco S.A. | 976,462 | $13,962 | ||||||
Banco Bradesco S.A. ADR | 31,272 | 446 | ||||||
Banco do Estado do Rio Grande do Sul S.A., Class B | 84,418 | 505 | ||||||
Bradespar S.A. | 118,301 | 865 | ||||||
Braskem S.A., Class A | 73,941 | 487 | ||||||
Centrais Eletricas Brasileiras S.A., Class B * | 102,041 | 426 | ||||||
Cia Brasileira de Distribuicao | 65,442 | 2,869 | ||||||
Cia Energetica de Minas Gerais | 372,947 | 2,305 | ||||||
Cia Energetica de Sao Paulo, Class B | 93,808 | 1,016 | ||||||
Cia Paranaense de Energia, Class B | 46,144 | 631 | ||||||
Gerdau S.A. | 424,961 | 2,043 | ||||||
Itau Unibanco Holding S.A. | 1,324,048 | 18,467 | ||||||
Itausa – Investimentos Itau S.A. | 1,533,948 | 5,841 | ||||||
Klabin S.A. | 231,741 | 1,123 | ||||||
Lojas Americanas S.A. | 247,993 | 1,406 | ||||||
Metalurgica Gerdau S.A. | 141,399 | 823 | ||||||
Oi S.A. | 1,247,998 | 867 | ||||||
Oi S.A. ADR | 37,810 | 26 | ||||||
Petroleo Brasileiro S.A. * | 1,964,095 | 14,604 | ||||||
Petroleo Brasileiro S.A. ADR (New York Exchange) * | 24,973 | 372 | ||||||
Suzano Papel e Celulose S.A., Class A | 138,500 | 556 | ||||||
Telefonica Brasil S.A. | 135,991 | 2,678 | ||||||
Telefonica Brasil S.A. ADR | 9,345 | 184 | ||||||
Usinas Siderurgicas de Minas Gerais S.A., Class A * | 189,744 | 491 | ||||||
Vale S.A. | 913,730 | 8,877 | ||||||
82,373 | ||||||||
Chile – 0.1% | ||||||||
Embotelladora Andina S.A., Class B | 117,962 | 382 | ||||||
Sociedad Quimica y Minera de Chile S.A. ADR | 3,193 | 84 | ||||||
Sociedad Quimica y Minera de Chile S.A., Class B | 43,713 | 1,135 | ||||||
1,601 | ||||||||
Colombia – 0.3% | ||||||||
Banco Davivienda S.A. | 45,289 | 652 | ||||||
Bancolombia S.A. | 179,537 | 2,541 | ||||||
Bancolombia S.A. ADR | 8,252 | 468 | ||||||
Grupo Argos S.A. | 55,321 | 615 | ||||||
Grupo Aval Acciones y Valores | 1,588,641 | 1,090 | ||||||
Grupo de Inversiones Suramericana S.A. | 47,747 | 955 | ||||||
6,321 |
NUMBER OF SHARES | VALUE (000s) | |||||||
PREFERRED STOCKS – 5.5% – continued | ||||||||
Russia – 0.3% | ||||||||
AK Transneft OAO | 767 | $1,690 | ||||||
Sberbank of Russia | 494,594 | 719 | ||||||
Surgutneftegas OAO | 2,032,924 | 1,399 | ||||||
Surgutneftegas OAO ADR | 140,161 | 953 | ||||||
4,761 | ||||||||
South Korea – 0.6% | ||||||||
Hyundai Motor Co. Ltd. | 18,510 | 2,105 | ||||||
Hyundai Motor Co. Ltd. | 11,700 | 1,308 | ||||||
LG Chem Ltd. | 4,159 | 646 | ||||||
Samsung Electronics Co. Ltd. | 9,897 | 8,411 | ||||||
12,470 | ||||||||
Total Preferred Stocks (4) | ||||||||
(Cost $126,183) | 107,526 | |||||||
RIGHTS – 0.0% | ||||||||
China – 0.0% | ||||||||
Country Garden Holdings Co. Ltd. * | 158,831 | 9 | ||||||
Hong Kong – 0.0% | ||||||||
Yuexiu Property Co. Ltd.* | 944,259 | 15 | ||||||
Total Rights (4) | ||||||||
(Cost $ – ) | 24 | |||||||
INVESTMENT COMPANIES – 2.3% | ||||||||
iShares MSCI Emerging Markets ETF | 302,000 | 12,551 | ||||||
iShares MSCI South Korea Capped ETF | 45,000 | 2,723 | ||||||
Northern Institutional Funds – Diversified Assets Portfolio, 0.01% (5)(6) | 15,524,059 | 15,524 | ||||||
Vanguard FTSE Emerging Markets ETF | 354,000 | 14,765 | ||||||
Total Investment Companies | ||||||||
(Cost $47,039) | 45,563 | |||||||
Total Investments – 98.4% | ||||||||
(Cost $1,629,535) | 1,935,113 | |||||||
Other Assets less Liabilities – 1.6% | 30,582 | |||||||
NET ASSETS – 100.0% | $1,965,695 |
(1) | 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. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Trustees of Northern Funds. |
(2) | Restricted security that has been deemed illiquid. At September 30, 2014, the value of these restricted illiquid securities amounted to approximately $1,876,000 or 0.1% of net assets. Additional information on each restricted illiquid security is as follows: |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 26 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
SECURITY | ACQUISITION AND ENFORCEABLE DATE | ACQUISITION (000s) | ||||||
Reliance Industries Ltd. GDR | 11/1/06-11/8/12 | $1,717 | ||||||
VTB Bank OJSC GDR | 5/11/07-10/28/09 | 80 |
(3) | Level 3 asset that is worthless, bankrupt or has been delisted. |
(4) | In accordance with the Fund’s prospectus, adjustment factors were provided by an independent evaluation service to determine the value of certain foreign securities. |
(5) | At March 31, 2014, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $11,082,000 with net purchases of approximately $4,442,000 during the six months ended September 30, 2014. |
(6) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
* | Non-Income Producing Security |
Percentages shown are based on Net Assets.
At September 30, 2014, the Fund had outstanding forward foreign currency exchange contracts as follows:
COUNTERPARTY | CONTRACTS DELIVER | AMOUNT (LOCAL CURRENCY) (000s) | IN EXCHANGE FOR CURRENCY | AMOUNT (LOCAL CURRENCY) (000s) | SETTLEMENT DATE | UNREALIZED (000s) | ||||||||||||||
UBS | Taiwan Dollar | 30,217 | United States Dollar | 1,000 | 12/17/14 | $4 | ||||||||||||||
UBS | United States Dollar | 880 | Indian Rupee | 54,402 | 12/17/14 | (14) | ||||||||||||||
UBS | United States Dollar | 900 | Korean Won | 942,615 | 12/17/14 | (12) | ||||||||||||||
UBS | United States Dollar | 2,270 | Korean Won | 2,363,638 | 12/17/14 | (44) | ||||||||||||||
UBS | United States Dollar | 2,320 | Taiwan Dollar | 69,586 | 12/17/14 | (27) | ||||||||||||||
Total | $(93) |
At September 30, 2014, the Fund had open futures contracts as follows:
TYPE | NUMBER OF CONTRACTS | NOTIONAL AMOUNT (000s) | CONTRACT POSITION | CONTRACT EXP. | UNREALIZED GAINS (LOSSES) | |||||||||||||||
Dax Index (Euro) | 6 | $1,798 | Long | 12/14 | $(35) | |||||||||||||||
FTSE/JSE Top 40 Index (South African Rand) | 186 | 7,341 | Long | 12/14 | (356) | |||||||||||||||
Hang Seng Index (Hong Kong Dollar) | 60 | 8,817 | Long | 10/14 | (398) | |||||||||||||||
mini MSCI Emerging Markets Index (United States Dollar) | 178 | 8,924 | Long | 12/14 | (629) |
TYPE | NUMBER OF CONTRACTS | NOTIONAL AMOUNT (000s) | CONTRACT POSITION | CONTRACT EXP. | UNREALIZED GAINS (LOSSES) (000s) | |||||||||||||||
MSCI Taiwan Index (United States Dollar) | 229 | 7,417 | Long | 10/14 | $(147) | |||||||||||||||
S&P/TSX 60 Index (Canadian Dollar) | 34 | 5,229 | Long | 12/14 | (191) | |||||||||||||||
SGX CNX Nifty Index (United States Dollar) | 308 | 4,921 | Long | 10/14 | (87) | |||||||||||||||
SPI 200 Index (Australian Dollar) | 18 | 2,081 | Long | 12/14 | (76) | |||||||||||||||
Total | $(1,919) |
At September 30, 2014, the industry sectors for the Fund were:
INDUSTRY SECTOR | % OF LONG-TERM INVESTMENTS | |||
Consumer Discretionary | 8.8% | |||
Consumer Staples | 8.2 | |||
Energy | 10.1 | |||
Financials | 28.5 | |||
Health Care | 2.1 | |||
Industrials | 6.5 | |||
Information Technology | 16.6 | |||
Materials | 8.1 | |||
Telecommunication Services | 7.6 | |||
Utilities | 3.5 | |||
Total | 100.0% |
At September 30, 2014, the Fund’s investments were denominated in the following currencies:
CONCENTRATION BY CURRENCY | % OF LONG-TERM INVESTMENTS | |||
Hong Kong Dollar | 18.9% | |||
Korean Won | 14.7 | |||
Taiwan Dollar | 11.8 | |||
Brazilian Real | 10.0 | |||
United States Dollar | 7.4 | |||
South African Rand | 7.2 | |||
Indian Rupee | 6.6 | |||
Mexican Peso | 5.4 | |||
All other currencies less than 5% | 18.0 | |||
Total | 100.0% |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 27 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
EMERGING MARKETS EQUITY INDEX FUND continued
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three levels listed below.
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices). The Fund adjusted the price of certain foreign equity securities held in its portfolio on September 30, 2014 using adjustment factors designed to reflect more accurately the fair value of the securities. The fair valuation of these securities resulted in their categorization as Level 2 investments.
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Common Stocks | ||||||||||||||||
Brazil | $113,092 | $– | $– | $113,092 | ||||||||||||
Chile | 26,008 | – | – | 26,008 | ||||||||||||
Colombia | 11,997 | – | – | 11,997 | ||||||||||||
Egypt | 1,713 | 3,112 | – | 4,825 | ||||||||||||
Hong Kong | – | 83,854 | 520 | 84,374 | ||||||||||||
India | 5,889 | 127,883 | – | 133,772 | ||||||||||||
Mexico | 103,455 | – | – | 103,455 | ||||||||||||
Peru | 8,340 | – | – | 8,340 | ||||||||||||
Russia | 6,550 | 76,794 | – | 83,344 | ||||||||||||
South Africa | – | 139,186 | 6 | 139,192 | ||||||||||||
South Korea | 869 | 270,007 | – | 270,876 | ||||||||||||
Thailand | 5,046 | 39,073 | – | 44,119 | ||||||||||||
United Arab Emirates | 1,660 | 9,787 | – | 11,447 | ||||||||||||
All Other Countries | – | 747,159 | (1) | – | 747,159 | |||||||||||
Preferred Stocks | ||||||||||||||||
Russia | 953 | 3,808 | – | 4,761 | ||||||||||||
South Korea | – | 12,470 | – | 12,470 | ||||||||||||
All Other Countries | 90,295 | (1) | – | – | 90,295 | |||||||||||
Rights | 24 | (1) | – | – | 24 | |||||||||||
Investment Companies | 45,563 | – | – | 45,563 | ||||||||||||
Total Investments | $421,454 | $1,513,133 | $526 | $1,935,113 | ||||||||||||
OTHER FINANCIAL INSTRUMENTS |
| |||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | $– | $4 | $– | $4 | ||||||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | – | (97 | ) | – | (97 | ) | ||||||||||
Futures Contracts | (1,919 | ) | – | – | (1,919 | ) | ||||||||||
Total Other Financial Instruments | $ | (1,919) | $ | (93) | $– | $ | (2,012) |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, the Fund had transfers from Level 1 to Level 2 as disclosed below:
Transfers from Level 1 to Level 2 | ||||||
Country | Value (000s) | Reason | ||||
Common Stocks | ||||||
Russia | $29,817 | Valuations at last trade with foreign fair value adjustments | ||||
Preferred Stocks | ||||||
Russia | 3,808 | Valuations at last trade with foreign fair value adjustments | ||||
Total | $33,625 |
At September 30, 2014, the Fund had transfers from Level 2 to Level 1 as disclosed below:
Transfers from Level 2 to Level 1 | ||||||
Country | Value (000s) | Reason | ||||
Common Stocks | ||||||
Egypt | $1,713 | Valuations at last trade price | ||||
Thailand | 5,046 | Valuations at last trade price | ||||
Total | $6,759 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 28 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED)
The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:
BALANCE AS OF 3/31/14 (000s) | ACCRUED DISCOUNTS (PREMIUMS) (000s) | REALIZED GAINS (LOSSES) (000s) | CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) (000s) | PURCHASES (000s) | SALES (000s) | TRANSFERS LEVEL 3 | TRANSFERS OUT OF LEVEL 3 (000s) | BALANCE AS OF 9/30/14 (000s) | CHANGE IN UNREALIZED HELD AT 9/30/14 (000s) | |||||||||||||||||||||||||||||||
Common Stocks | ||||||||||||||||||||||||||||||||||||||||
Hong Kong | $ | – | $ | – | $ | – | $ | (60 | ) | $ | 580 | $ | – | $ | – | $ | – | $ | 520 | $ | (60 | ) | ||||||||||||||||||
South Africa | – | – | – | – | – | – | 6 | – | 6 | 491 | ||||||||||||||||||||||||||||||
Total | $ | – | $ | – | $ | – | $ | (60 | ) | $ | 580 | $ | – | $ | 6 | $ | – | $ | 526 | $ | 431 |
(1) | The Transfers Into Level 3, noted above, are due to the Fund receiving valuations provided by the Asset Management PVC. |
The Fund valued the securities included in the balance as of 9/30/14 above using prices provided by the Asset Management PVC.
FAIR VALUE AT 9/30/14 (000s) | VALUATION TECHNIQUES | UNOBSERVABLE INPUTS | ||||||
Common Stock | $526 | Consensus Pricing | Price to Earnings Multiple/Liquidity Discount |
The significant unobservable inputs used in the fair value measurement are the price to earnings multiple along with liquidity discounts. Significant increases (decreases) in the price to earnings multiple in isolation would result in a significantly higher (lower) fair value measurement while an increase (decrease) in liquidity discounts in isolation would result in a significantly lower (higher) fair value measurement.
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 29 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
GLOBAL REAL ESTATE INDEX FUND
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% | ||||||||
Australia – 5.5% | ||||||||
BGP Holdings PLC (1)* | 6,535,576 | $ – | ||||||
BWP Trust | 551,102 | 1,149 | ||||||
CFS Retail Property Trust Group | 2,592,395 | 4,519 | ||||||
Charter Hall Retail REIT | 358,663 | 1,191 | ||||||
Cromwell Property Group | 1,674,831 | 1,393 | ||||||
Dexus Property Group | 6,686,073 | 6,503 | ||||||
Federation Centres | 1,656,526 | 3,744 | ||||||
Goodman Group | 1,988,544 | 8,966 | ||||||
GPT Group (The) | 2,050,934 | 6,934 | ||||||
Investa Office Fund | 698,257 | 2,043 | ||||||
Mirvac Group | 4,251,894 | 6,406 | ||||||
Scentre Group * | 6,009,050 | 17,208 | ||||||
Stockland | 2,676,603 | 9,241 | ||||||
Westfield Corp. * | 2,243,307 | 14,591 | ||||||
83,888 | ||||||||
Austria – 0.5% | ||||||||
Atrium European Real Estate Ltd. * | 194,045 | 1,008 | ||||||
BUWOG A.G. * | 58,914 | 1,163 | ||||||
CA Immobilien Anlagen A.G. * | 92,867 | 1,849 | ||||||
Conwert Immobilien Invest S.E. * | 71,257 | 810 | ||||||
IMMOFINANZ A.G. | 1,108,055 | 3,133 | ||||||
7,963 | ||||||||
Belgium – 0.4% | ||||||||
Aedifica S.A. | 10,601 | 696 | ||||||
Befimmo S.A. | 18,913 | 1,403 | ||||||
Cofinimmo | 20,052 | 2,268 | ||||||
Intervest Offices & Warehouses N.V. | 8,135 | 221 | ||||||
Leasinvest Real Estate S.C.A. | 2,283 | 233 | ||||||
Warehouses De Pauw S.C.A. | 13,055 | 942 | ||||||
Wereldhave Belgium N.V. | 2,325 | 281 | ||||||
6,044 | ||||||||
Brazil – 1.0% | ||||||||
Aliansce Shopping Centers S.A. | 92,741 | 705 | ||||||
BR Malls Participacoes S.A. | 498,718 | 3,920 | ||||||
BR Properties S.A. | 230,272 | 1,214 | ||||||
Brookfield Incorporacoes S.A. * | 294,657 | 184 | ||||||
Cyrela Brazil Realty S.A. Empreendimentos e Participacoes | 310,785 | 1,568 | ||||||
Direcional Engenharia S.A. | 93,430 | 377 | ||||||
Even Construtora e Incorporadora S.A. | 227,269 | 504 | ||||||
Ez Tec Empreendimentos e Participacoes S.A. | 57,868 | 497 | ||||||
Gafisa S.A. | 504,158 | 610 | ||||||
General Shopping Brasil S.A. * | 23,913 | 90 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Brazil – 1.0% – continued | ||||||||
Helbor Empreendimentos S.A. | 143,897 | $313 | ||||||
Iguatemi Empresa de Shopping Centers S.A. | 70,103 | 713 | ||||||
JHSF Participacoes S.A. | 134,916 | 196 | ||||||
MRV Engenharia e Participacoes S.A. | 343,112 | 1,141 | ||||||
Multiplan Empreendimentos Imobiliarios S.A. * | 88,997 | 1,819 | ||||||
PDG Realty S.A. Empreendimentos e Participacoes * | 1,534,722 | 702 | ||||||
Rodobens Negocios Imobiliarios S.A. | 28,773 | 118 | ||||||
Rossi Residencial S.A. * | 306,531 | 135 | ||||||
Sao Carlos Empreendimentos e Participacoes S.A. | 20,034 | 294 | ||||||
Sonae Sierra Brasil S.A. | 31,315 | 235 | ||||||
Tecnisa S.A. | 98,731 | 198 | ||||||
15,533 | ||||||||
Canada – 3.1% | ||||||||
Allied Properties Real Estate Investment Trust | 86,567 | 2,642 | ||||||
Artis Real Estate Investment Trust | 156,852 | 2,144 | ||||||
Boardwalk Real Estate Investment Trust | 46,141 | 2,839 | ||||||
Calloway Real Estate Investment Trust | 119,987 | 2,755 | ||||||
Canadian Apartment Properties REIT | 128,166 | 2,700 | ||||||
Canadian Real Estate Investment Trust | 80,030 | 3,466 | ||||||
Chartwell Retirement Residences | 200,162 | 1,959 | ||||||
Cominar Real Estate Investment Trust | 166,945 | 2,817 | ||||||
Crombie Real Estate Investment Trust | 89,568 | 1,036 | ||||||
Dream Global Real Estate Investment Trust | 109,811 | 890 | ||||||
Dream Office Real Estate Investment Trust | 120,876 | 3,018 | ||||||
Extendicare, Inc. | 101,991 | 749 | ||||||
First Capital Realty, Inc. | 97,083 | 1,518 | ||||||
Granite Real Estate Investment Trust | 54,437 | 1,872 | ||||||
H&R Real Estate Investment Trust | 314,237 | 6,133 | ||||||
InnVest Real Estate Investment Trust | 87,365 | 414 | ||||||
Killam Properties, Inc. | 60,135 | 556 | ||||||
Morguard Real Estate Investment Trust | 39,825 | 659 | ||||||
Northern Property Real Estate Investment Trust | 37,121 | 932 | ||||||
Pure Industrial Real Estate Trust | 220,099 | 871 | ||||||
RioCan Real Estate Investment Trust | 352,685 | 8,084 | ||||||
48,054 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 30 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Chile – 0.1% | ||||||||
Parque Arauco S.A. | 597,851 | $1,142 | ||||||
China – 1.4% | ||||||||
Agile Property Holdings Ltd. | 1,449,979 | 892 | ||||||
Beijing Capital Land Ltd., Class H | 1,178,000 | 406 | ||||||
Beijing North Star Co. Ltd., Class H | 819,662 | 221 | ||||||
China Merchants Property Development Co. Ltd., Class B | 245,012 | 401 | ||||||
China Vanke Co. Ltd., Class H * | 1,525,541 | 2,685 | ||||||
Country Garden Holdings Co. Ltd. | 5,076,233 | 1,911 | ||||||
Evergrande Real Estate Group Ltd. | 6,880,000 | 2,581 | ||||||
Fantasia Holdings Group Co. Ltd. | 2,017,500 | 216 | ||||||
Greenland Hong Kong Holdings Ltd. | 346,000 | 133 | ||||||
Greentown China Holdings Ltd. | 899,500 | 842 | ||||||
Guangzhou R&F Properties Co. Ltd., Class H | 1,121,002 | 1,135 | ||||||
Kaisa Group Holdings Ltd. | 2,174,600 | 827 | ||||||
KWG Property Holding Ltd. | 1,342,094 | 943 | ||||||
Longfor Properties Co. Ltd. | 1,573,500 | 1,801 | ||||||
Powerlong Real Estate Holdings Ltd. * | 1,675,000 | 216 | ||||||
Redco Properties Group Ltd. (2)(3) | 486,000 | 209 | ||||||
Renhe Commercial Holdings Co. Ltd. * | 12,448,000 | 528 | ||||||
Shui On Land Ltd. | 3,964,777 | 889 | ||||||
Sino-Ocean Land Holdings Ltd. | 4,136,519 | 2,181 | ||||||
SOHO China Ltd. | 1,784,756 | 1,289 | ||||||
Sunac China Holdings Ltd. | 2,040,050 | 1,545 | ||||||
Wuzhou International Holdings Ltd. | 1,372,000 | 341 | ||||||
22,192 | ||||||||
Finland – 0.2% | ||||||||
Citycon OYJ | 302,928 | 1,010 | ||||||
Sponda OYJ | 279,134 | 1,262 | ||||||
Technopolis OYJ | 110,102 | 559 | ||||||
2,831 | ||||||||
France – 3.1% | ||||||||
Affine S.A. | 6,432 | 122 | ||||||
ANF Immobilier | 8,069 | 235 | ||||||
Fonciere Des Regions | 39,094 | 3,517 | ||||||
Gecina S.A. | 39,741 | 5,199 | ||||||
ICADE | 40,988 | 3,455 | ||||||
Klepierre | 113,264 | 4,955 | ||||||
Mercialys S.A. | 48,075 | 1,048 | ||||||
Unibail-Rodamco S.E. | 112,859 | 28,983 | ||||||
47,514 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Germany – 1.6% | ||||||||
alstria office REIT-A.G. * | 78,789 | $965 | ||||||
Deutsche Annington Immobilien S.E. | 92,016 | 2,661 | ||||||
Deutsche Euroshop A.G. | 53,205 | 2,301 | ||||||
Deutsche Wohnen A.G. (Bearer) | 332,187 | 7,099 | ||||||
DIC Asset A.G. | 38,517 | 325 | ||||||
DO Deutsche Office A.G. * | 76,862 | 293 | ||||||
GAGFAH S.A. * | 250,602 | 4,654 | ||||||
Hamborner REIT A.G. | 52,937 | 543 | ||||||
LEG Immobilien A.G. * | 56,557 | 3,918 | ||||||
TAG Immobilien A.G. | 143,628 | 1,623 | ||||||
24,382 | ||||||||
Greece – 0.0% | ||||||||
Eurobank Properties Real Estate Investment Co. | 44,946 | 510 | ||||||
Hong Kong – 8.6% | ||||||||
C C Land Holdings Ltd. | 1,531,000 | 268 | ||||||
Champion REIT | 2,703,846 | 1,128 | ||||||
China Overseas Land & Investment Ltd. | 4,738,542 | 12,139 | ||||||
China Resources Land Ltd. | 2,163,218 | 4,438 | ||||||
CIFI Holdings Group Co. Ltd. | 1,982,880 | 370 | ||||||
Franshion Properties China Ltd. | 4,246,000 | 1,034 | ||||||
Glorious Property Holdings Ltd. * | 2,856,100 | 437 | ||||||
Hang Lung Properties Ltd. | 2,590,452 | 7,360 | ||||||
Henderson Land Development Co. Ltd. | 1,315,077 | 8,521 | ||||||
Hongkong Land Holdings Ltd. | 1,362,618 | 9,248 | ||||||
Hopson Development Holdings Ltd. * | 734,000 | 634 | ||||||
Hui Xian Real Estate Investment Trust | 2,354,215 | 1,326 | ||||||
Hysan Development Co. Ltd. | 727,045 | 3,364 | ||||||
K Wah International Holdings Ltd. | 1,223,079 | 684 | ||||||
Kerry Properties Ltd. | 745,599 | 2,508 | ||||||
Link REIT (The) | 2,651,800 | 15,285 | ||||||
Mingfa Group International Co. Ltd. * | 1,124,000 | 292 | ||||||
Minmetals Land Ltd. | 1,400,000 | 159 | ||||||
New World China Land Ltd. | 3,009,899 | 1,706 | ||||||
New World Development Co. Ltd. | 5,815,125 | 6,779 | ||||||
Poly Property Group Co. Ltd. | 2,112,000 | 810 | ||||||
Road King Infrastructure Ltd. | 293,000 | 262 | ||||||
Shanghai Industrial Urban Development Group Ltd. * | 1,556,000 | 299 | ||||||
Shenzhen Investment Ltd. | 2,578,402 | 722 | ||||||
Shimao Property Holdings Ltd. | 1,447,869 | 2,936 | ||||||
Sino Land Co. Ltd. | 3,453,661 | 5,346 | ||||||
Sinolink Worldwide Holdings Ltd. * | 2,404,000 | 195 | ||||||
Sun Hung Kai Properties Ltd. | 1,788,425 | 25,304 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 31 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
GLOBAL REAL ESTATE INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Hong Kong – 8.6% – continued | ||||||||
Swire Properties Ltd. | 1,357,800 | $4,236 | ||||||
Wharf Holdings (The) Ltd. | 1,756,317 | 12,493 | ||||||
Yuexiu Property Co. Ltd. | 7,279,400 | 1,291 | ||||||
131,574 | ||||||||
India – 0.2% | ||||||||
DLF Ltd. | 495,535 | 1,203 | ||||||
Oberoi Realty Ltd. | 90,788 | 319 | ||||||
Prestige Estates Projects Ltd. | 104,291 | 370 | ||||||
Unitech Ltd. * | 1,582,096 | 480 | ||||||
2,372 | ||||||||
Indonesia – 0.5% | ||||||||
Agung Podomoro Land Tbk PT | 8,106,696 | 228 | ||||||
Alam Sutera Realty Tbk PT | 13,727,740 | 510 | ||||||
Bumi Serpong Damai PT | 8,561,900 | 1,084 | ||||||
Ciputra Development Tbk PT | 12,332,390 | 1,025 | ||||||
Ciputra Property Tbk PT | 2,992,838 | 179 | ||||||
Ciputra Surya Tbk PT | 876,600 | 152 | ||||||
Intiland Development Tbk PT | 6,173,600 | 294 | ||||||
Kawasan Industri Jababeka Tbk PT | 17,835,977 | 360 | ||||||
Lippo Karawaci Tbk PT | 22,255,831 | 1,717 | ||||||
Pakuwon Jati Tbk PT | 14,596,840 | 483 | ||||||
Summarecon Agung Tbk PT | 12,571,800 | 1,259 | ||||||
7,291 | ||||||||
Israel – 0.1% | ||||||||
Azrieli Group | 42,240 | 1,451 | ||||||
Italy – 0.1% | ||||||||
Beni Stabili S.p.A. | 957,078 | 671 | ||||||
Immobiliare Grande Distribuzione | 170,635 | 143 | ||||||
814 | ||||||||
Japan – 11.3% | ||||||||
Activia Properties, Inc. | 259 | 2,081 | ||||||
Advance Residence Investment Corp. | 1,479 | 3,441 | ||||||
Aeon Mall Co. Ltd. | 114,866 | 2,195 | ||||||
Daiwa House REIT Investment Corp. | 296 | 1,312 | ||||||
Daiwa House Residential Investment Corp. | 377 | 1,617 | ||||||
Daiwa Office Investment Corp. | 287 | 1,550 | ||||||
Frontier Real Estate Investment Corp. | 547 | 2,624 | ||||||
Fukuoka REIT Corp. | 713 | 1,315 | ||||||
GLP J-REIT | 2,348 | 2,711 | ||||||
Hulic Co. Ltd. | 342,840 | 3,629 | ||||||
Industrial & Infrastructure Fund Investment Corp. | 173 | 1,434 | ||||||
Japan Excellent, Inc. | 1,268 | 1,628 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Japan – 11.3% – continued | ||||||||
Japan Hotel REIT Investment Corp. | 3,042 | $1,853 | ||||||
Japan Logistics Fund, Inc. | 964 | 2,131 | ||||||
Japan Prime Realty Investment Corp. | 919 | 3,311 | ||||||
Japan Real Estate Investment Corp. | 1,453 | 7,474 | ||||||
Japan Retail Fund Investment Corp. | 2,680 | 5,395 | ||||||
Kenedix Office Investment Corp. | 386 | 2,075 | ||||||
Mitsubishi Estate Co. Ltd. | 1,468,480 | 33,082 | ||||||
Mitsui Fudosan Co. Ltd. | 1,101,562 | 33,780 | ||||||
Mori Hills REIT Investment Corp. | 1,504 | 2,090 | ||||||
Mori Trust Sogo Reit, Inc. | 1,150 | 2,126 | ||||||
Nippon Accommodations Fund, Inc. | 515 | 1,860 | ||||||
Nippon Building Fund, Inc. | 1,573 | 8,285 | ||||||
Nippon Prologis REIT, Inc. | 1,680 | 3,901 | ||||||
Nomura Real Estate Holdings, Inc. | 139,100 | 2,391 | ||||||
Nomura Real Estate Master Fund, Inc. | 1,934 | 2,427 | ||||||
Nomura Real Estate Office Fund, Inc. | 411 | 1,881 | ||||||
NTT Urban Development Corp. | 125,900 | 1,326 | ||||||
Orix JREIT, Inc. | 2,267 | 2,853 | ||||||
Premier Investment Corp. | 243 | 1,086 | ||||||
Sumitomo Realty & Development Co. Ltd. | 502,425 | 17,898 | ||||||
Tokyo Tatemono Co. Ltd. | 477,201 | 3,864 | ||||||
Tokyu REIT, Inc. | 1,066 | 1,406 | ||||||
Top REIT, Inc. | 195 | 855 | ||||||
United Urban Investment Corp. | 2,903 | 4,456 | ||||||
173,343 | ||||||||
Malaysia – 0.5% | ||||||||
Axis Real Estate Investment Trust | 444,248 | 490 | ||||||
CapitaMalls Malaysia Trust | 1,190,900 | 519 | ||||||
Eastern & Oriental Bhd. | 848,700 | 743 | ||||||
Glomac Bhd. | 409,200 | 142 | ||||||
IGB Corp. Bhd. | 908,754 | 795 | ||||||
IGB Real Estate Investment Trust | 1,901,200 | 765 | ||||||
IJM Land Bhd. | 490,450 | 494 | ||||||
KLCCP Stapled Group | 525,248 | 1,063 | ||||||
KSL Holdings Bhd. * | 226,400 | 322 | ||||||
Mah Sing Group Bhd. | 955,720 | 708 | ||||||
MKH Bhd. | 185,760 | 210 | ||||||
Pavilion Real Estate Investment Trust | 1,032,400 | 459 | ||||||
SP Setia Bhd. Group | 977,030 | 1,024 | ||||||
Tropicana Corp. Bhd. | 412,500 | 160 | ||||||
UOA Development Bhd. | 558,000 | 359 | ||||||
YTL Land & Development Bhd. * | 340,300 | 96 | ||||||
8,349 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 32 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Mexico – 0.8% | ||||||||
Asesor de Activos Prisma S.A.P.I. de C.V. | 250,523 | $326 | ||||||
Concentradora Fibra Danhos S.A. de C.V. | 245,653 | 668 | ||||||
Consorcio ARA S.A.B. de C.V. * | 808,261 | 368 | ||||||
Corp. GEO S.A.B. de C.V., Series B(4) * | 549,034 | – | ||||||
Corp. Inmobiliaria Vesta S.A.B. de C.V. | 442,600 | 952 | ||||||
Desarrolladora Homex S.A.B. de C.V. * | 234,285 | 55 | ||||||
Fibra Uno Administracion S.A. de C.V. | 2,604,309 | 8,567 | ||||||
Mexico Real Estate Management S.A.de C.V. * | 942,089 | 1,662 | ||||||
Urbi Desarrollos Urbanos S.A.B. de C.V. * | 776,726 | 1 | ||||||
12,599 | ||||||||
Netherlands – 0.6% | ||||||||
Corio N.V. | 79,528 | 3,893 | ||||||
Eurocommercial Properties N.V. – CVA | 48,155 | 2,121 | ||||||
Nieuwe Steen Investments N.V. | 151,970 | 797 | ||||||
Vastned Retail N.V. | 22,071 | 1,007 | ||||||
Wereldhave N.V. | 25,182 | 2,073 | ||||||
9,891 | ||||||||
New Zealand – 0.1% | ||||||||
Kiwi Income Property Trust | 1,179,903 | 1,073 | ||||||
Norway – 0.1% | ||||||||
Norwegian Property ASA * | 604,144 | 903 | ||||||
Philippines – 0.8% | ||||||||
Ayala Land, Inc. | 6,542,251 | 5,096 | ||||||
Filinvest Land, Inc. | 11,392,989 | 401 | ||||||
Megaworld Corp. | 13,434,101 | 1,503 | ||||||
Robinsons Land Corp. | 1,915,275 | 1,038 | ||||||
SM Prime Holdings, Inc. | 8,718,053 | 3,395 | ||||||
Vista Land & Lifescapes, Inc. | 3,919,761 | �� | 539 | |||||
11,972 | ||||||||
Poland – 0.0% | ||||||||
Globe Trade Centre S.A. * | 293,072 | 494 | ||||||
Russia – 0.1% | ||||||||
PIK Group * | 329,622 | 976 | ||||||
Singapore – 3.4% | ||||||||
Ascendas India Trust | 801,000 | 487 | ||||||
Ascendas Real Estate Investment Trust | 2,284,753 | 4,030 | ||||||
CapitaCommercial Trust | 2,271,014 | 2,840 | ||||||
CapitaLand Ltd. | 2,943,915 | 7,376 | ||||||
CapitaMall Trust | 3,011,715 | 4,509 | ||||||
CDL Hospitality Trusts | 730,610 | 956 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Singapore – 3.4% – continued | ||||||||
City Developments Ltd. | 686,000 | $5,165 | ||||||
First Real Estate Investment Trust | 555,510 | 535 | ||||||
Fortune Real Estate Investment Trust | 1,503,920 | 1,346 | ||||||
Global Logistic Properties Ltd. | 3,478,793 | 7,382 | ||||||
Keppel Land Ltd. | 823,027 | 2,256 | ||||||
Keppel REIT Management Ltd. | 1,712,720 | 1,597 | ||||||
Mapletree Commercial Trust | 1,486,000 | 1,643 | ||||||
Mapletree Greater China Commercial Trust | 2,102,000 | 1,491 | ||||||
Mapletree Industrial Trust | 1,362,948 | 1,516 | ||||||
Mapletree Logistics Trust | 1,662,374 | 1,505 | ||||||
Suntec Real Estate Investment Trust | 2,774,291 | 3,828 | ||||||
UOL Group Ltd. | 526,691 | 2,725 | ||||||
Wing Tai Holdings Ltd. | 444,355 | 614 | ||||||
Yanlord Land Group Ltd. | 779,000 | 655 | ||||||
52,456 | ||||||||
South Africa – 1.3% | ||||||||
Acucap Properties Ltd. | 151,033 | 615 | ||||||
Arrowhead Properties Ltd., Class A | 428,718 | 298 | ||||||
Arrowhead Properties Ltd., Class B | 428,542 | 300 | ||||||
Attacq Ltd. * | 497,937 | 883 | ||||||
Capital Property Fund | 1,713,588 | 1,828 | ||||||
Emira Property Fund | 511,386 | 711 | ||||||
Fountainhead Property Trust | 520,925 | 355 | ||||||
Growthpoint Properties Ltd. | 2,364,682 | 5,159 | ||||||
Hyprop Investments Ltd. | 282,521 | 2,171 | ||||||
Redefine Properties Ltd. | 3,881,849 | 3,344 | ||||||
Resilient Property Income Fund Ltd. | 293,985 | 1,893 | ||||||
SA Corporate Real Estate Fund Nominees Pty. Ltd. | 2,300,536 | 901 | ||||||
Vukile Property Fund Ltd. | 600,872 | 886 | ||||||
19,344 | ||||||||
Spain – 0.2% | ||||||||
Inmobiliaria Colonial S.A. * | 1,945,023 | 1,373 | ||||||
Merlin Properties Socimi S.A. * | 144,976 | 1,835 | ||||||
3,208 | ||||||||
Sweden – 0.9% | ||||||||
Castellum AB | 190,363 | 2,886 | ||||||
Dios Fastigheter AB | 54,554 | 401 | ||||||
Fabege AB | 153,625 | 1,951 | ||||||
Fastighets AB Balder, Class B * | 106,954 | 1,353 | ||||||
Hemfosa Fastigheter AB * | 46,330 | 723 | ||||||
Hufvudstaden AB, Class A | 128,618 | 1,597 | ||||||
Klovern AB | 85,801 | 414 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 33 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
GLOBAL REAL ESTATE INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Sweden – 0.9% – continued | ||||||||
Kungsleden AB | 158,258 | $939 | ||||||
Wallenstam AB, Class B | 116,019 | 1,751 | ||||||
Wihlborgs Fastigheter AB | 76,668 | 1,315 | ||||||
13,330 | ||||||||
Switzerland – 0.7% | ||||||||
Allreal Holding A.G. (Registered) * | 11,123 | 1,440 | ||||||
Mobimo Holding A.G. (Registered) * | 7,155 | 1,385 | ||||||
PSP Swiss Property A.G. (Registered) * | 46,187 | 3,873 | ||||||
Swiss Prime Site A.G. (Registered) * | 63,932 | 4,748 | ||||||
11,446 | ||||||||
Taiwan – 0.0% | ||||||||
Hung Poo Real Estate Development Corp. | 233,585 | 189 | ||||||
Thailand – 0.5% | ||||||||
Amata Corp. PCL (Registered) | 141,686 | 71 | ||||||
Amata Corp. PCL NVDR | 475,571 | 237 | ||||||
AP Thailand PCL (Registered) | 401,278 | 89 | ||||||
AP Thailand PCL NVDR | 570,004 | 126 | ||||||
Central Pattana PCL (Registered) | 825,726 | 1,184 | ||||||
Central Pattana PCL NVDR | 733,598 | 1,050 | ||||||
Land and Houses PCL (Registered) | 2,094,184 | 683 | ||||||
Land and Houses PCL NVDR | 1,387,000 | 444 | ||||||
LPN Development PCL (Registered) | 8,475 | 6 | ||||||
LPN Development PCL NVDR | 667,801 | 445 | ||||||
Property Perfect PCL (Registered) * | 2,765,102 | 118 | ||||||
Property Perfect PCL NVDR * | 3,452,195 | 147 | ||||||
Pruksa Real Estate PCL NVDR | 774,500 | 815 | ||||||
Quality Houses PCL NVDR | 4,325,100 | 561 | ||||||
Sansiri PCL NVDR | 4,231,700 | 291 | ||||||
SC Asset Corp. PCL (Registered) | 664,875 | 80 | ||||||
SC Asset Corp. PCL NVDR | 763,488 | 92 | ||||||
Siam Future Development PCL NVDR | 921,912 | 202 | ||||||
Supalai PCL (Registered) | 224,356 | 180 | ||||||
Supalai PCL NVDR | 479,400 | 384 | ||||||
TICON Industrial Connection PCL NVDR | 621,005 | 347 | ||||||
WHA Corp. PCL NVDR | 294,610 | 356 | ||||||
7,908 | ||||||||
Turkey – 0.2% | ||||||||
Dogus Gayrimenkul Yatirim Ortakligi A.S. * | 54,149 | 93 | ||||||
Emlak Konut Gayrimenkul Yatirim Ortakligi A.S. | 2,250,425 | 2,347 | ||||||
Is Gayrimenkul Yatirim Ortakligi A.S. | 369,870 | 208 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Turkey – 0.2% – continued | ||||||||
Sinpas Gayrimenkul Yatirim | ||||||||
Ortakligi A.S. * | 258,537 | $95 | ||||||
2,743 | ||||||||
United Arab Emirates – 1.1% | ||||||||
Aldar Properties PJSC | 3,650,641 | 3,883 | ||||||
Emaar Properties PJSC | 4,072,326 | 12,761 | ||||||
Emirates REIT CEIC Ltd. | 171,371 | 247 | ||||||
RAK Properties PJSC | 1,133,104 | 307 | ||||||
17,198 | ||||||||
United Kingdom – 5.1% | ||||||||
Big Yellow Group PLC | 148,997 | 1,251 | ||||||
British Land (The) Co. PLC | 1,174,021 | 13,329 | ||||||
Capital & Counties Properties PLC | 843,081 | 4,479 | ||||||
Daejan Holdings PLC | 5,587 | 442 | ||||||
Derwent London PLC | 107,225 | 4,723 | ||||||
Development Securities PLC | 145,203 | 462 | ||||||
Grainger PLC | 476,329 | 1,432 | ||||||
Great Portland Estates PLC | 399,069 | 4,132 | ||||||
Hammerson PLC | 821,120 | 7,633 | ||||||
Hansteen Holdings PLC | 795,768 | 1,334 | ||||||
Helical Bar PLC | 114,953 | 652 | ||||||
Intu Properties PLC | 1,065,430 | 5,572 | ||||||
Land Securities Group PLC | 913,031 | 15,323 | ||||||
Londonmetric Property PLC | 677,422 | 1,525 | ||||||
Primary Health Properties PLC | 124,099 | 667 | ||||||
Quintain Estates & Development PLC * | 567,278 | 818 | ||||||
Redefine International PLC | 1,007,025 | 838 | ||||||
Safestore Holdings PLC | 241,254 | 837 | ||||||
Segro PLC | 860,829 | 5,047 | ||||||
Shaftesbury PLC | 322,577 | 3,554 | ||||||
St. Modwen Properties PLC | 204,345 | 1,215 | ||||||
UNITE Group (The) PLC | 233,198 | 1,604 | ||||||
Workspace Group PLC | 122,261 | 1,254 | ||||||
78,123 | ||||||||
United States – 43.6% | ||||||||
Acadia Realty Trust | 68,841 | 1,899 | ||||||
Agree Realty Corp. | 16,734 | 458 | ||||||
Alexander’s, Inc. | 2,357 | 881 | ||||||
Alexandria Real Estate Equities, Inc. | 82,953 | 6,118 | ||||||
American Assets Trust, Inc. | 42,504 | 1,401 | ||||||
American Campus Communities, Inc. | 121,415 | 4,426 | ||||||
American Homes 4 Rent, Class A | 174,506 | 2,947 | ||||||
American Realty Capital Healthcare | ||||||||
Trust, Inc. | 196,501 | 2,059 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 34 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
United States – 43.6% – continued | ||||||||
American Realty Capital Properties, Inc. | 1,053,868 | $12,710 | ||||||
Apartment Investment & Management Co., Class A | 168,976 | 5,377 | ||||||
Ashford Hospitality Trust, Inc. | 81,088 | 829 | ||||||
Associated Estates Realty Corp. | 66,708 | 1,168 | ||||||
AvalonBay Communities, Inc. | 152,247 | 21,462 | ||||||
Aviv REIT, Inc. | 29,631 | 781 | ||||||
BioMed Realty Trust, Inc. | 226,520 | 4,576 | ||||||
Boston Properties, Inc. | 176,009 | 20,375 | ||||||
Brandywine Realty Trust | 207,625 | 2,921 | ||||||
Brixmor Property Group, Inc. | 102,344 | 2,278 | ||||||
Camden Property Trust | 98,506 | 6,751 | ||||||
Campus Crest Communities, Inc. | 75,141 | 481 | ||||||
CBL & Associates Properties, Inc. | 197,102 | 3,528 | ||||||
Cedar Realty Trust, Inc. | 93,018 | 549 | ||||||
Chambers Street Properties | 274,358 | 2,066 | ||||||
Chesapeake Lodging Trust | 63,642 | 1,855 | ||||||
Corporate Office Properties Trust | 95,221 | 2,449 | ||||||
Cousins Properties, Inc. | 250,248 | 2,990 | ||||||
CubeSmart | 172,462 | 3,101 | ||||||
DCT Industrial Trust, Inc. | 386,825 | 2,905 | ||||||
DDR Corp. | 354,422 | 5,929 | ||||||
DiamondRock Hospitality Co. | 226,308 | 2,870 | ||||||
Digital Realty Trust, Inc. | 157,109 | 9,800 | ||||||
Douglas Emmett, Inc. | 155,849 | 4,001 | ||||||
Duke Realty Corp. | 396,071 | 6,805 | ||||||
DuPont Fabros Technology, Inc. | 76,127 | 2,058 | ||||||
EastGroup Properties, Inc. | 36,718 | 2,225 | ||||||
Education Realty Trust, Inc. | 162,067 | 1,666 | ||||||
Empire State Realty Trust, Inc., Class A | 90,119 | 1,354 | ||||||
EPR Properties | 62,003 | 3,142 | ||||||
Equity Commonwealth(1) * | 75,000 | – | ||||||
Equity Commonwealth (New York Exchange) | 149,535 | 3,845 | ||||||
Equity Lifestyle Properties, Inc. | 88,621 | 3,754 | ||||||
Equity One, Inc. | 69,522 | 1,504 | ||||||
Equity Residential | 413,664 | 25,473 | ||||||
Essex Property Trust, Inc. | 73,717 | 13,177 | ||||||
Excel Trust, Inc. | 67,229 | 791 | ||||||
Extra Space Storage, Inc. | 126,344 | 6,516 | ||||||
Federal Realty Investment Trust | 78,588 | 9,310 | ||||||
FelCor Lodging Trust, Inc. | 144,283 | 1,350 | ||||||
First Industrial Realty Trust, Inc. | 127,450 | 2,155 | ||||||
First Potomac Realty Trust | 68,146 | 801 | ||||||
Forest City Enterprises, Inc., Class A * | 174,944 | 3,422 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
United States – 43.6% – continued | ||||||||
Franklin Street Properties Corp. | 102,280 | $1,148 | ||||||
General Growth Properties, Inc. | 584,587 | 13,767 | ||||||
Getty Realty Corp. | 29,226 | 497 | ||||||
Glimcher Realty Trust | 168,096 | 2,276 | ||||||
Government Properties Income Trust | 81,521 | 1,786 | ||||||
HCP, Inc. | 531,665 | 21,112 | ||||||
Health Care REIT, Inc. | 356,614 | 22,242 | ||||||
Healthcare Realty Trust, Inc. | 113,040 | 2,677 | ||||||
Healthcare Trust of America, Inc., Class A | 274,918 | 3,189 | ||||||
Hersha Hospitality Trust | 199,712 | 1,272 | ||||||
Highwoods Properties, Inc. | 104,318 | 4,058 | ||||||
Home Properties, Inc. | 66,018 | 3,845 | ||||||
Hospitality Properties Trust | 173,578 | 4,661 | ||||||
Host Hotels & Resorts, Inc. | 877,606 | 18,719 | ||||||
Hudson Pacific Properties, Inc. | 63,829 | 1,574 | ||||||
Inland Real Estate Corp. | 99,313 | 984 | ||||||
Investors Real Estate Trust | 132,897 | 1,023 | ||||||
Kilroy Realty Corp. | 96,573 | 5,740 | ||||||
Kimco Realty Corp. | 477,100 | 10,453 | ||||||
Kite Realty Group Trust | 95,281 | 2,310 | ||||||
LaSalle Hotel Properties | 120,593 | 4,129 | ||||||
Lexington Realty Trust | 268,291 | 2,627 | ||||||
Liberty Property Trust | 171,435 | 5,702 | ||||||
LTC Properties, Inc. | 40,273 | 1,486 | ||||||
Macerich (The) Co. | 163,134 | 10,413 | ||||||
Mack-Cali Realty Corp. | 103,180 | 1,972 | ||||||
Mid-America Apartment Communities, Inc. | 86,411 | 5,673 | ||||||
National Health Investors, Inc. | 33,760 | 1,929 | ||||||
National Retail Properties, Inc. | 145,227 | 5,020 | ||||||
New York REIT, Inc. | 189,536 | 1,948 | ||||||
Omega Healthcare Investors, Inc. | 146,297 | 5,002 | ||||||
Parkway Properties, Inc. | 91,538 | 1,719 | ||||||
Pebblebrook Hotel Trust | 74,362 | 2,777 | ||||||
Pennsylvania Real Estate Investment Trust | 75,866 | 1,513 | ||||||
Piedmont Office Realty Trust, Inc., Class A | 178,985 | 3,157 | ||||||
Post Properties, Inc. | 62,889 | 3,229 | ||||||
Prologis, Inc. | 578,286 | 21,801 | ||||||
PS Business Parks, Inc. | 23,173 | 1,764 | ||||||
Public Storage | 168,327 | 27,915 | ||||||
Ramco-Gershenson Properties Trust | 88,961 | 1,446 | ||||||
Realty Income Corp. | 257,017 | 10,484 | ||||||
Regency Centers Corp. | 106,341 | 5,724 | ||||||
Retail Opportunity Investments Corp. | 105,833 | 1,556 | ||||||
Retail Properties of America, Inc., Class A | 274,542 | 4,017 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 35 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
GLOBAL REAL ESTATE INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
United States – 43.6% – continued |
| |||||||
RLJ Lodging Trust | 153,297 | $4,364 | ||||||
Rouse Properties, Inc. | 42,602 | 689 | ||||||
Ryman Hospitality Properties, Inc. | 55,700 | 2,635 | ||||||
Sabra Health Care REIT, Inc. | 54,883 | 1,335 | ||||||
Saul Centers, Inc. | 15,405 | 720 | ||||||
Select Income REIT | 43,751 | 1,052 | ||||||
Senior Housing Properties Trust | 236,464 | 4,947 | ||||||
Silver Bay Realty Trust Corp. | 42,701 | 692 | ||||||
Simon Property Group, Inc. | 360,621 | 59,293 | ||||||
SL Green Realty Corp. | 110,107 | 11,156 | ||||||
Sovran Self Storage, Inc. | 38,592 | 2,870 | ||||||
Spirit Realty Capital, Inc. | 444,319 | 4,874 | ||||||
STAG Industrial, Inc. | 64,138 | 1,328 | ||||||
Strategic Hotels & Resorts, Inc. * | 286,982 | 3,343 | ||||||
Sun Communities, Inc. | 52,485 | 2,650 | ||||||
Sunstone Hotel Investors, Inc. | 238,326 | 3,294 | ||||||
Tanger Factory Outlet Centers, Inc. | 111,253 | 3,640 | ||||||
Taubman Centers, Inc. | 73,980 | 5,401 | ||||||
TravelCenters of America LLC(1) * | 50,000 | – | ||||||
UDR, Inc. | 290,442 | 7,915 | ||||||
Universal Health Realty Income Trust | 15,173 | 632 | ||||||
Urstadt Biddle Properties, Inc., Class A | 27,160 | 551 | ||||||
Ventas, Inc. | 341,535 | 21,158 | ||||||
Vornado Realty Trust | 194,513 | 19,444 | ||||||
Washington Prime Group, Inc. | 180,091 | 3,148 | ||||||
Washington Real Estate Investment Trust | 77,244 | 1,960 | ||||||
Weingarten Realty Investors | 127,716 | 4,023 | ||||||
Winthrop Realty Trust | 37,708 | 568 | ||||||
WP Carey, Inc. | 97,789 | 6,236 | ||||||
667,543 | ||||||||
Total Common Stocks (5) | ||||||||
(Cost $1,264,003) | 1,496,643 | |||||||
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CONVERTIBLE BONDS – 0.0% | ||||||||
YTL Land & Development Bhd., | $114 | $15 | ||||||
Total Convertible Bonds(5) | ||||||||
(Cost $18) | 15 |
NUMBER OF SHARES | VALUE (000s) | |||||||
RIGHTS – 0.0% | ||||||||
China – 0.0% | ||||||||
Country Garden Holdings Co. Ltd. * | 329,948 | $19 | ||||||
Hong Kong – 0.0% | ||||||||
Yuexiu Property Co. Ltd. * | 1,758,042 | 27 | ||||||
Italy – 0.0% | ||||||||
Beni Stabili S.p.A. * | 957,078 | 20 | ||||||
Immobiliare Grande Distribuzione * | 170,635 | 36 | ||||||
56 | ||||||||
Sweden – 0.0% | ||||||||
Kungsleden AB * | 154,536 | 56 | ||||||
Total Rights(5) | ||||||||
(Cost $54) | 158 | |||||||
INVESTMENT COMPANIES – 1.2% | ||||||||
F&C Commercial Property Trust Ltd. | 581,635 | $1,183 | ||||||
F&C UK Real Estate Investment Ltd. | 268,946 | 396 | ||||||
MedicX Fund Ltd. | 412,284 | 558 | ||||||
Northern Institutional Funds – Diversified Assets Portfolio, 0.01% (6)(7) | 13,335,418 | 13,336 | ||||||
Picton Property Income Ltd. | 511,536 | 531 | ||||||
Schroder Real Estate Investment Trust Ltd. | 549,782 | 508 | ||||||
Standard Life Investment Property Income Trust PLC | 249,496 | 317 | ||||||
UK Commercial Property Trust Ltd. | 469,396 | 616 | ||||||
Total Investment Companies(5) | ||||||||
(Cost $16,764) | 17,445 | |||||||
Total Investments – 98.9% | ||||||||
(Cost $1,280,839) | 1,514,261 | |||||||
Other Assets less Liabilities – 1.1% |
| 17,483 | ||||||
NET ASSETS – 100.0% | $1,531,744 |
(1) | Level 3 asset that is worthless, bankrupt or has been delisted. |
(2) | Restricted security that has been deemed illiquid. At September 30, 2014, the value of this restricted illiquid security amounted to approximately $209,000 or 0.0% of net assets. Additional information on this restricted illiquid security is as follows: |
SECURITY | ACQUISITION AND ENFORCEABLE DATE | ACQUISITION (000S) | ||||||
Redco Properties Group Ltd. | 6/20/14-9/19/14 | $214 |
(3) | 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. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Trustees of Northern Funds. |
(4) | Value rounds to less than one thousand. |
(5) | In accordance with the Fund’s prospectus, adjustment factors were provided by an independent evaluation service to determine the value of certain foreign securities. |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 36 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
(6) | At March 31, 2014, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $4,230,000 with net purchases of approximately $9,106,000 during the six months ended September 30, 2014. |
(7) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
* | Non-Income Producing Security |
Percentages shown are based on Net Assets.
At September 30, 2014, the Fund had outstanding forward foreign currency exchange contracts as follows:
COUNTERPARTY | CONTRACTS TO DELIVER | AMOUNT (LOCAL CURRENCY) (000s) | IN EXCHANGE FOR CURRENCY | AMOUNT (000s) | SETTLEMENT DATE | UNREALIZED GAINS (LOSSES) | ||||||||||||||||
Morgan Stanley | Australian Dollar | 2,270 | United States Dollar | 2,000 | 12/17/14 | $24 | ||||||||||||||||
Goldman Sachs | British Pound | 1,225 | United States Dollar | 2,000 | 12/17/14 | 15 | ||||||||||||||||
Morgan Stanley | Canadian Dollar | 1,469 | United States Dollar | 1,330 | 12/17/14 | 21 | ||||||||||||||||
Morgan Stanley | Euro | 1,946 | United States Dollar | 2,500 | 12/17/14 | 40 | ||||||||||||||||
Citibank London | | Hong Kong Dollar | | 27,129 | United States Dollar | 3,500 | 12/17/14 | 7 | ||||||||||||||
Citibank London | Hong Kong Dollar | 9,534 | United States Dollar | 1,230 | 12/17/14 | 2 | ||||||||||||||||
Citibank London | Japanese Yen | 370,739 | United States Dollar | 3,400 | 12/17/14 | 17 | ||||||||||||||||
Goldman Sachs | Japanese Yen | 52,207 | United States Dollar | 480 | 12/17/14 | 4 | ||||||||||||||||
Citibank London | | Singapore Dollar | | 1,420 | United States Dollar | 1,120 | 12/17/14 | 7 | ||||||||||||||
Morgan Stanley | Swiss Franc | 151 | United States Dollar | 162 | 12/17/14 | 3 | ||||||||||||||||
Morgan Stanley | United States Dollar | 1,521 | Australian Dollar | 1,694 | 12/17/14 | (46) | ||||||||||||||||
Citibank London | United States Dollar | 3,171 | British Pound | 1,955 | 12/17/14 | (4) | ||||||||||||||||
Goldman Sachs | United States Dollar | 1,312 | Canadian Dollar | 1,456 | 12/17/14 | (14) | ||||||||||||||||
UBS | United States Dollar | 3,424 | Euro | 2,643 | 12/17/14 | (84) | ||||||||||||||||
Citibank London | United States Dollar | 6,051 | Hong Kong Dollar | 46,888 | 12/17/14 | $(13) | ||||||||||||||||
Morgan Stanley | United States Dollar | 6,106 | Japanese Yen | 654,865 | 12/17/14 | (131) | ||||||||||||||||
Citibank London | United States Dollar | 1,090 | Singapore Dollar | 1,377 | 12/17/14 | (10) | ||||||||||||||||
Morgan Stanley | United States Dollar | 230 | Swedish Krona | 1,640 | 12/17/14 | (3) | ||||||||||||||||
Total | $(165) |
At September 30, 2014, the Fund had open futures contracts as follows:
TYPE | NUMBER OF CONTRACTS | NOTIONAL (000s) | CONTRACT POSITION | CONTRACT EXP. | UNREALIZED GAINS (LOSSES) (000s) | |||||||||||||||
E-mini S&P MidCap 400 (United States Dollar) | 107 | $14,610 | Long | 12/14 | $(496) | |||||||||||||||
Euro Stoxx 50 (Euro) | 23 | 936 | Long | 12/14 | 3 | |||||||||||||||
Hang Seng Index (Hong Kong Dollar) | 26 | 3,821 | Long | 10/14 | (169) | |||||||||||||||
SPI 200 Index (Australian Dollar) | 43 | 4,972 | Long | 12/14 | (142) | |||||||||||||||
Topix Index (Japanese Yen) | 7 | 847 | Long | 12/14 | 11 | |||||||||||||||
Yen Denominated Nikkei 225 (Japanese Yen) | 54 | 3,988 | Long | 12/14 | 111 | |||||||||||||||
Total | $(682) |
At September 30, 2014, the industry sectors for the Fund were:
INDUSTRY SECTOR | % OF LONG-TERM INVESTMENTS | |||
Diversified Real Estate Activity | 13.0% | |||
Diversified REITs | 14.6 | |||
Health Care REITs | 6.1 | |||
Office REITs | 10.4 | |||
Real Estate Development | 6.1 | |||
Real Estate Operating Companies | 8.0 | |||
Residential REITs | 8.4 | |||
Retail REITs | 21.5 | |||
Other Industries less than 5% | 11.9 | |||
Total | 100.0% |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 37 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
GLOBAL REAL ESTATE INDEX FUND continued
At September 30, 2014, the Fund’s investments were denominated in the following currencies:
CONCENTRATION BY CURRENCY | % OF LONG-TERM INVESTMENTS | |||
United States Dollar | 45.2% | |||
Japanese Yen | 11.5 | |||
Hong Kong Dollar | 9.6 | |||
Euro | 6.9 | |||
Australian Dollar | 5.6 | |||
British Pound | 5.5 | |||
All other currencies less than 5% | 15.7 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices). The Fund adjusted the price of certain foreign equity securities held in its portfolio on September 30, 2014 using adjustment factors designed to reflect more accurately the fair value of the securities. The fair valuation of these securities resulted in their categorization as Level 2 investments.
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Common Stocks | ||||||||||||||||
Australia | $– | $83,888 | $– | * | $83,888 | |||||||||||
Brazil | 15,533 | – | – | 15,533 | ||||||||||||
Canada | 48,054 | – | – | 48,054 | ||||||||||||
Chile | 1,142 | – | – | 1,142 | ||||||||||||
Mexico | 12,543 | – | 56 | 12,599 | ||||||||||||
Switzerland | 4,748 | 6,698 | – | 11,446 | ||||||||||||
United Arab Emirates | 247 | 16,951 | – | 17,198 | ||||||||||||
United States | 667,543 | – | – | 667,543 | ||||||||||||
All Other Countries | – | 639,240 | (1) | – | 639,240 | |||||||||||
Convertible Bonds | – | – | 15 | 15 | ||||||||||||
Rights | 158 | (1) | – | – | 158 | |||||||||||
Investment Companies | 13,336 | 4,109 | – | 17,445 | ||||||||||||
Total Investments | $763,304 | $750,886 | $71 | $1,514,261 | ||||||||||||
OTHER FINANCIAL INSTRUMENTS |
| |||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $125 | $– | $– | $125 | ||||||||||||
Forward Foreign Currency Exchange Contracts | – | 140 | – | 140 | ||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | (807 | ) | – | – | (807 | ) | ||||||||||
Forward Foreign Currency Exchange Contracts | – | (305 | ) | – | (305 | ) | ||||||||||
Total Other Financial Instruments | $ | (682) | $ | (165) | $– | $ | (847) |
(1) | Classifications as defined in the Schedule of Investments. |
* | Amount rounds to less than one thousand. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, the Fund had transfers from Level 1 to Level 2 as described below:
Transfers from Level 1 to Level 2 | ||||||
Country | Value (000s) | Reason | ||||
Common Stocks | ||||||
Russia | $976 | Valuations at last trade with foreign fair value adjustments |
At September 30, 2014, the Fund had transfers from Level 2 to Level 1 as disclosed below:
Transfers from Level 2 to Level 1 | ||||||
Country | Value (000s) | Reason | ||||
Common Stocks | ||||||
Switzerland | $4,748 | Valuations at last trade price |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 38 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED)
The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:
BALANCE AS OF 3/31/14 (000s) | ACCRUED DISCOUNTS (PREMIUMS) (000s) | REALIZED GAINS (LOSSES) (000s) | CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) (000s) | PURCHASES (000s) | SALES (000s) | TRANSFERS LEVEL 3 | TRANSFERS OUT OF LEVEL 3 (000s) | BALANCE AS OF 9/30/14 (000s) | CHANGE IN UNREALIZED (000s) | |||||||||||||||||||||||||||||||
Common Stocks | ||||||||||||||||||||||||||||||||||||||||
Mexico | $ | 1 | $ | – | $ | – | $ | – | $ | – | $ | – | $ | 55 | $ | – | $ | 56 | $ | (2 | ) | |||||||||||||||||||
Convertible Bonds | ||||||||||||||||||||||||||||||||||||||||
Malaysia | – | – | – | – | – | – | 15 | – | 15 | $ | 1 | |||||||||||||||||||||||||||||
Total | $ | 1 | $ | – | $ | – | $ | – | $ | – | $ | – | $ | 70 | $ | – | $ | 71 | $ | (1 | ) |
(1) | Securities valued at $55 were transferred into Level 3 due to the Fund receiving valuations provided by the Asset Management PVC and securities valued at $15 were transferred into Level 3 due to the Fund receiving an evaluated price from a third party provider. |
Securities valued at $56 included in the balance as of 9/30/14 above used prices provided by the Asset Management PVC and securities valued at $15 used an evaluated price provided by a third party provider.
FAIR VALUE AT 9/30/14 (000s) | VALUATION TECHNIQUES | UNOBSERVABLE INPUTS | NOTE | |||||||||
Common Stock | $1 | Consensus Pricing | Distressed/Defaulted Market Discount, Estimated Recovery Value | 1 | ||||||||
Common Stock | $55 | Market Comparable Companies | Price to Earnings Multiple/Liquidity Discount | 2 |
1.) | The unobservable inputs are reviewed and compared to publicly available information for reasonableness. Values are reviewed based on available restructuring and recovery information. Values are compared to historical averages and general sector trends are taken into account. In general, an increase (decrease) in recovery or reduction (increase) in dilution would, in isolation, result in a significantly higher (lower) fair value measurement. |
2.) | The significant unobservable inputs used in the fair value measurement are the price to earnings multiple along with liquidity discounts. Significant increases (decreases) in the price to earnings multiple in isolation would result in a significantly higher (lower) fair value measurement while an increase (decrease) in liquidity discounts in isolation would result in a significantly lower (higher) fair value measurement. |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 39 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
GLOBAL SUSTAINABILITY INDEX FUND
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% | ||||||||
Australia – 3.6% | ||||||||
AGL Energy Ltd. | 7,785 | $92 | ||||||
Amcor Ltd. | 13,931 | 138 | ||||||
AMP Ltd. | 36,229 | 173 | ||||||
APA Group | 9,169 | 60 | ||||||
Asciano Ltd. | 10,806 | 57 | ||||||
Australia & New Zealand Banking | ||||||||
Group Ltd. | 32,317 | 873 | ||||||
Bendigo and Adelaide Bank Ltd. | 4,880 | 51 | ||||||
Boral Ltd. | 8,582 | 37 | ||||||
Brambles Ltd. | 19,145 | 159 | ||||||
Caltex Australia Ltd. | 1,718 | 42 | ||||||
CFS Retail Property Trust Group | 25,012 | 44 | ||||||
Coca-Cola Amatil Ltd. | 6,315 | 48 | ||||||
Commonwealth Bank of Australia | 19,075 | 1,252 | ||||||
Dexus Property Group | 64,862 | 63 | ||||||
Fortescue Metals Group Ltd. | 18,090 | 55 | ||||||
Goodman Group | 20,563 | 93 | ||||||
GPT Group (The) | 19,686 | 67 | ||||||
Insurance Australia Group Ltd. | 28,588 | 153 | ||||||
Lend Lease Group | 6,036 | 76 | ||||||
Metcash Ltd. | 10,365 | 24 | ||||||
Mirvac Group | 42,908 | 65 | ||||||
National Australia Bank Ltd. | 27,732 | 787 | ||||||
Newcrest Mining Ltd. * | 8,920 | 82 | ||||||
Orica Ltd. | 4,286 | 71 | ||||||
QBE Insurance Group Ltd. | 16,105 | 164 | ||||||
Ramsay Health Care Ltd. | 1,447 | 63 | ||||||
Stockland | 27,586 | 95 | ||||||
Sydney Airport | 11,660 | 43 | ||||||
Toll Holdings Ltd. | 7,715 | 38 | ||||||
Transurban Group | 22,103 | 149 | ||||||
Wesfarmers Ltd. | 13,531 | 498 | ||||||
Westpac Banking Corp. | 36,597 | 1,025 | ||||||
Woodside Petroleum Ltd. | 8,540 | 303 | ||||||
WorleyParsons Ltd. | 2,479 | 33 | ||||||
6,973 | ||||||||
Austria – 0.0% | ||||||||
OMV A.G. | 1,612 | 54 | ||||||
Belgium – 0.2% | ||||||||
Belgacom S.A. | 1,644 | 57 | ||||||
Colruyt S.A. | 837 | 37 | ||||||
Delhaize Group S.A. | 1,120 | 78 | ||||||
KBC Groep N.V. * | 2,833 | 150 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Belgium – 0.2% – continued | ||||||||
Umicore S.A. | 1,245 | $54 | ||||||
376 | ||||||||
Canada – 5.0% | ||||||||
Agnico Eagle Mines Ltd. | 2,394 | 69 | ||||||
Agrium, Inc. | 1,665 | 148 | ||||||
AltaGas Ltd. | 1,527 | 64 | ||||||
ARC Resources Ltd. | 3,698 | 98 | ||||||
Atco Ltd., Class I | 800 | 32 | ||||||
Bank of Montreal | 7,492 | 551 | ||||||
Bank of Nova Scotia | 14,327 | 886 | ||||||
Canadian Imperial Bank of Commerce | 4,720 | 424 | ||||||
Canadian National Railway Co. | 9,703 | 689 | ||||||
Canadian Tire Corp. Ltd., Class A | 895 | 92 | ||||||
Canadian Utilities Ltd., Class A | 1,392 | 49 | ||||||
Cenovus Energy, Inc. | 8,854 | 238 | ||||||
CGI Group, Inc., Class A * | 2,812 | 95 | ||||||
Crescent Point Energy Corp. | 4,741 | 171 | ||||||
Empire Co. Ltd., Class A | 600 | 42 | ||||||
Enbridge, Inc. | 9,941 | 476 | ||||||
Encana Corp. | 8,429 | 179 | ||||||
Enerplus Corp. | 2,206 | 42 | ||||||
Franco-Nevada Corp. | 1,812 | 89 | ||||||
Gildan Activewear, Inc. | 1,356 | 74 | ||||||
Keyera Corp. | 925 | 75 | ||||||
Kinross Gold Corp. * | 12,443 | 41 | ||||||
Loblaw Cos. Ltd. | 2,613 | 131 | ||||||
Magna International, Inc. | 2,511 | 238 | ||||||
MEG Energy Corp. * | 1,882 | 58 | ||||||
Metro, Inc. | 974 | 65 | ||||||
Open Text Corp. | 1,400 | 77 | ||||||
Pengrowth Energy Corp. | 5,495 | 29 | ||||||
Penn West Petroleum Ltd. | 5,616 | 38 | ||||||
Potash Corp. of Saskatchewan, Inc. | 10,122 | 350 | ||||||
Rogers Communications, Inc., Class B | 4,445 | 166 | ||||||
Royal Bank of Canada | 16,959 | 1,212 | ||||||
Shaw Communications, Inc., Class B | 4,400 | 108 | ||||||
Silver Wheaton Corp. | 4,167 | 83 | ||||||
Suncor Energy, Inc. | 17,320 | 627 | ||||||
Teck Resources Ltd., Class B | 6,536 | 124 | ||||||
TELUS Corp. | 2,400 | 82 | ||||||
Tim Hortons, Inc. | 1,600 | 126 | ||||||
Toronto-Dominion Bank (The) | 21,676 | 1,070 | ||||||
TransAlta Corp. | 3,214 | 34 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 40 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Canada – 5.0% – continued | ||||||||
Valeant Pharmaceuticals | ||||||||
International, Inc. * | 3,783 | $496 | ||||||
9,738 | ||||||||
Denmark – 0.9% | ||||||||
Coloplast A/S, Class B | 1,382 | 116 | ||||||
Novo Nordisk A/S, Class B | 23,618 | 1,125 | ||||||
Novozymes A/S, Class B | 2,793 | 121 | ||||||
Pandora A/S | 1,333 | 104 | ||||||
TDC A/S | 8,888 | 67 | ||||||
Tryg A/S | 267 | 28 | ||||||
Vestas Wind Systems A/S * | 2,500 | 97 | ||||||
1,658 | ||||||||
Finland – 0.1% | ||||||||
Neste Oil OYJ | 1,553 | 32 | ||||||
Orion OYJ, Class B | 1,193 | 47 | ||||||
Stora Enso OYJ (Registered) | 6,446 | 53 | ||||||
UPM-Kymmene OYJ | 6,068 | 86 | ||||||
218 | ||||||||
France – 2.9% | ||||||||
Accor S.A. | 2,058 | 91 | ||||||
Aeroports de Paris | 354 | 42 | ||||||
Air Liquide S.A. | 4,075 | 496 | ||||||
AtoS | 957 | 69 | ||||||
AXA S.A. | 21,477 | 529 | ||||||
Bouygues S.A. | 2,222 | 72 | ||||||
Bureau Veritas S.A. | 2,379 | 53 | ||||||
Cap Gemini S.A. | 1,634 | 117 | ||||||
Carrefour S.A. | 7,198 | 222 | ||||||
Casino Guichard Perrachon S.A. | 692 | 74 | ||||||
Christian Dior S.A. | 630 | 105 | ||||||
Cie de St-Gobain | 5,324 | 243 | ||||||
CNP Assurances | 1,914 | 36 | ||||||
Danone S.A. | 6,865 | 458 | ||||||
Eurazeo S.A. | 474 | 34 | ||||||
Gecina S.A. | 330 | 43 | ||||||
ICADE | 431 | 36 | ||||||
Imerys S.A. | 353 | 26 | ||||||
JCDecaux S.A. | 772 | 24 | ||||||
Kering | 921 | 185 | ||||||
Lafarge S.A. | 2,273 | 163 | ||||||
Lagardere S.C.A. | 1,248 | 33 | ||||||
Legrand S.A. | 3,136 | 163 | ||||||
L’Oreal S.A. | 2,980 | 472 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
France – 2.9% – continued | ||||||||
Natixis S.A. | 11,389 | $78 | ||||||
Renault S.A. | 2,207 | 159 | ||||||
Rexel S.A. | 3,314 | 62 | ||||||
Schneider Electric S.E. | 6,177 | 472 | ||||||
SES S.A. | 3,460 | 120 | ||||||
Societe BIC S.A. | 324 | 42 | ||||||
Suez Environnement Co. | 2,995 | 51 | ||||||
Technip S.A. | 1,161 | 97 | ||||||
Unibail-Rodamco S.E. | 1,133 | 291 | ||||||
Vallourec S.A. | 1,206 | 55 | ||||||
Vinci S.A. | 5,789 | 335 | ||||||
Wendel S.A. | 341 | 39 | ||||||
5,587 | ||||||||
Germany – 2.8% | ||||||||
adidas A.G. | 2,398 | 179 | ||||||
Allianz S.E. (Registered) | 5,376 | 871 | ||||||
BASF S.E. | 10,812 | 992 | ||||||
Bayerische Motoren Werke A.G. | 3,934 | 422 | ||||||
Beiersdorf A.G. | 1,167 | 97 | ||||||
Deutsche Boerse A.G. | 2,351 | 159 | ||||||
Deutsche Lufthansa A.G. (Registered) | 2,542 | 40 | ||||||
Deutsche Post A.G. (Registered) | 11,552 | 369 | ||||||
Fraport A.G. Frankfurt Airport Services Worldwide | 422 | 28 | ||||||
GEA Group A.G. | 2,124 | 92 | ||||||
HeidelbergCement A.G. | 1,600 | 106 | ||||||
Henkel A.G. & Co. KGaA | 1,387 | 130 | ||||||
Hochtief A.G. | 307 | 21 | ||||||
K+S A.G. (Registered) | 2,005 | 57 | ||||||
Linde A.G. | 2,207 | 424 | ||||||
MAN S.E. | 379 | 43 | ||||||
Merck KGaA | 1,460 | 135 | ||||||
Metro A.G. * | 1,875 | 62 | ||||||
Muenchener Rueckversicherungs A.G. (Registered) | 2,054 | 407 | ||||||
ProSiebenSat.1 Media A.G. (Registered) | 2,500 | 99 | ||||||
SAP S.E. | 10,855 | 783 | ||||||
Telefonica Deutschland Holding A.G. * | 5,824 | 30 | ||||||
5,546 | ||||||||
Hong Kong – 0.6% | ||||||||
CLP Holdings Ltd. | 21,806 | 175 | ||||||
Hang Seng Bank Ltd. | 8,678 | 139 | ||||||
Hong Kong & China Gas Co. Ltd. | 72,101 | 156 | ||||||
Hong Kong Exchanges and Clearing Ltd. | 13,268 | 286 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 41 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
GLOBAL SUSTAINABILITY INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Hong Kong – 0.6% – continued | ||||||||
Li & Fung Ltd. | 66,000 | $75 | ||||||
Michael Kors Holdings Ltd. * | 2,467 | 176 | ||||||
MTR Corp. Ltd. | 17,180 | 67 | ||||||
Swire Pacific Ltd., Class A | 7,500 | 97 | ||||||
Swire Properties Ltd. | 12,478 | 39 | ||||||
Yue Yuen Industrial Holdings Ltd. | 7,500 | 23 | ||||||
1,233 | ||||||||
Ireland – 0.3% | ||||||||
CRH PLC | 8,701 | 198 | ||||||
Endo International PLC * | 1,711 | 117 | ||||||
Kerry Group PLC, Class A | 1,827 | 129 | ||||||
Seagate Technology PLC | 3,800 | 217 | ||||||
661 | ||||||||
Israel – 0.0% | ||||||||
Delek Group Ltd. | 44 | 17 | ||||||
Italy – 0.7% | ||||||||
Assicurazioni Generali S.p.A. | 13,633 | 286 | ||||||
Atlantia S.p.A. | 4,808 | 118 | ||||||
Enel Green Power S.p.A. | 19,140 | 49 | ||||||
Exor S.p.A. | 1,087 | 42 | ||||||
Intesa Sanpaolo S.p.A. | 138,232 | 418 | ||||||
Pirelli & C. S.p.A. | 2,656 | 37 | ||||||
Snam S.p.A. | 22,898 | 126 | ||||||
Tenaris S.A. | 5,389 | 123 | ||||||
Terna Rete Elettrica Nazionale S.p.A. | 16,494 | 83 | ||||||
1,282 | ||||||||
Japan – 8.8% | ||||||||
Aeon Co. Ltd. | 7,300 | 73 | ||||||
AEON Financial Service Co. Ltd. | 1,190 | 26 | ||||||
Aeon Mall Co. Ltd. | 1,180 | 23 | ||||||
Air Water, Inc. | 2,000 | 30 | ||||||
Aisin Seiki Co. Ltd. | 2,100 | 76 | ||||||
Ajinomoto Co., Inc. | 7,000 | 117 | ||||||
Alfresa Holdings Corp. | 2,400 | 35 | ||||||
Amada Co. Ltd. | 4,000 | 38 | ||||||
ANA Holdings, Inc. | 14,000 | 33 | ||||||
Asahi Glass Co. Ltd. | 11,000 | 60 | ||||||
Asahi Kasei Corp. | 16,000 | 130 | ||||||
Asics Corp. | 1,800 | 41 | ||||||
Astellas Pharma, Inc. | 25,600 | 381 | ||||||
Benesse Holdings, Inc. | 900 | 30 | ||||||
Canon, Inc. | 13,400 | 436 | ||||||
Casio Computer Co. Ltd. | 2,300 | 38 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Japan – 8.8% – continued | ||||||||
Central Japan Railway Co. | 1,700 | $229 | ||||||
Chiyoda Corp. | 2,000 | 22 | ||||||
Chugai Pharmaceutical Co. Ltd. | 2,710 | 78 | ||||||
Citizen Holdings Co. Ltd. | 2,600 | 17 | ||||||
Dai Nippon Printing Co. Ltd. | 6,000 | 60 | ||||||
Daicel Corp. | 3,000 | 32 | ||||||
Daido Steel Co. Ltd. | 3,000 | 12 | ||||||
Daikin Industries Ltd. | 2,700 | 168 | ||||||
Daiwa House Industry Co. Ltd. | 6,900 | 124 | ||||||
Denso Corp. | 5,800 | 268 | ||||||
Dentsu, Inc. | 2,500 | 95 | ||||||
East Japan Railway Co. | 3,900 | 292 | ||||||
Eisai Co. Ltd. | 2,905 | 118 | ||||||
FamilyMart Co. Ltd. | 600 | 23 | ||||||
Fast Retailing Co. Ltd. | 600 | 201 | ||||||
Fuji Heavy Industries Ltd. | 7,008 | 232 | ||||||
Fujitsu Ltd. | 22,000 | 136 | ||||||
Hino Motors Ltd. | 3,100 | 43 | ||||||
Hitachi Chemical Co. Ltd. | 1,017 | 18 | ||||||
Hitachi Construction Machinery Co. Ltd. | 1,300 | 26 | ||||||
Hitachi High-Technologies Corp. | 943 | 27 | ||||||
Hitachi Metals Ltd. | 3,000 | 54 | ||||||
Honda Motor Co. Ltd. | 19,300 | 669 | ||||||
Ibiden Co. Ltd. | 1,200 | 23 | ||||||
Inpex Corp. | 10,000 | 142 | ||||||
Isetan Mitsukoshi Holdings Ltd. | 3,800 | 49 | ||||||
Itochu Techno-Solutions Corp. | 300 | 13 | ||||||
Japan Airlines Co. Ltd. | 1,400 | 38 | ||||||
JFE Holdings, Inc. | 5,600 | 112 | ||||||
JSR Corp. | 2,100 | 37 | ||||||
JTEKT Corp. | 2,200 | 37 | ||||||
Kajima Corp. | 10,000 | 48 | ||||||
Kaneka Corp. | 3,000 | 17 | ||||||
Kansai Paint Co. Ltd. | 3,000 | 45 | ||||||
Kao Corp. | 6,200 | 242 | ||||||
Kawasaki Heavy Industries Ltd. | 17,000 | 68 | ||||||
KDDI Corp. | 6,900 | 415 | ||||||
Keio Corp. | 7,000 | 52 | ||||||
Keyence Corp. | 500 | 217 | ||||||
Kikkoman Corp. | 2,000 | 43 | ||||||
Kobe Steel Ltd. | 33,551 | 54 | ||||||
Komatsu Ltd. | 10,900 | 252 | ||||||
Konica Minolta, Inc. | 5,900 | 64 | ||||||
Kubota Corp. | 13,000 | 205 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 42 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Japan – 8.8% – continued | ||||||||
Kuraray Co. Ltd. | 3,800 | $45 | ||||||
Kurita Water Industries Ltd. | 1,100 | 24 | ||||||
Kyocera Corp. | 3,700 | 173 | ||||||
Kyowa Hakko Kirin Co. Ltd. | 3,000 | 37 | ||||||
Lawson, Inc. | 700 | 49 | ||||||
Makita Corp. | 1,400 | 79 | ||||||
Marui Group Co. Ltd. | 3,300 | 27 | ||||||
Mazda Motor Corp. | 6,200 | 156 | ||||||
McDonald’s Holdings Co. Japan Ltd. | 700 | 17 | ||||||
Miraca Holdings, Inc. | 600 | 25 | ||||||
Mitsubishi Corp. | 16,800 | 344 | ||||||
Mitsubishi Electric Corp. | 23,000 | 307 | ||||||
Mitsubishi Materials Corp. | 12,000 | 39 | ||||||
Mitsubishi Motors Corp. | 7,391 | 90 | ||||||
Mitsubishi UFJ Lease & Finance Co. Ltd. | 5,830 | 30 | ||||||
Mitsui Chemicals, Inc. * | 8,000 | 22 | ||||||
Mitsui Fudosan Co. Ltd. | 11,000 | 337 | ||||||
Mitsui OSK Lines Ltd. | 13,000 | 41 | ||||||
Mizuho Financial Group, Inc. | 272,973 | 488 | ||||||
Murata Manufacturing Co. Ltd. | 2,415 | 275 | ||||||
Nabtesco Corp. | 1,200 | 29 | ||||||
NEC Corp. | 33,000 | 114 | ||||||
NGK Insulators Ltd. | 3,000 | 72 | ||||||
NGK Spark Plug Co. Ltd. | 2,000 | 59 | ||||||
Nikon Corp. | 4,000 | 58 | ||||||
Nippon Paint Holdings Co. Ltd. | 2,000 | 45 | ||||||
Nippon Steel & Sumitomo Metal Corp. | 87,520 | 227 | ||||||
Nippon Telegraph & Telephone Corp. | 4,500 | 280 | ||||||
Nippon Yusen K.K. | 18,000 | 47 | ||||||
Nissan Motor Co. Ltd. | 29,800 | 291 | ||||||
Nissin Foods Holdings Co. Ltd. | 600 | 31 | ||||||
Nitto Denko Corp. | 1,800 | 99 | ||||||
Nomura Research Institute Ltd. | 1,366 | 44 | ||||||
NSK Ltd. | 6,000 | 85 | ||||||
NTT Data Corp. | 1,400 | 50 | ||||||
NTT DOCOMO, Inc. | 17,800 | 297 | ||||||
Obayashi Corp. | 7,000 | 48 | ||||||
Omron Corp. | 2,400 | 109 | ||||||
Oriental Land Co. Ltd. | 600 | 114 | ||||||
Osaka Gas Co. Ltd. | 22,000 | 88 | ||||||
Panasonic Corp. | 26,400 | 314 | ||||||
Resona Holdings, Inc. | 25,200 | 142 | ||||||
Ricoh Co. Ltd. | 7,900 | 85 | ||||||
Rinnai Corp. | 400 | 33 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Japan – 8.8% – continued | ||||||||
Santen Pharmaceutical Co. Ltd. | 800 | $45 | ||||||
Secom Co. Ltd. | 2,400 | 143 | ||||||
Sekisui Chemical Co. Ltd. | 5,000 | 57 | ||||||
Sekisui House Ltd. | 6,300 | 74 | ||||||
Seven & I Holdings Co. Ltd. | 8,700 | 338 | ||||||
Sharp Corp. * | 17,000 | 48 | ||||||
Shimadzu Corp. | 3,000 | 26 | ||||||
Shimizu Corp. | 7,000 | 55 | ||||||
Shin-Etsu Chemical Co. Ltd. | 4,900 | 321 | ||||||
Showa Shell Sekiyu K.K. | 1,900 | 18 | ||||||
SoftBank Corp. | 11,300 | 793 | ||||||
Sompo Japan Nipponkoa Holdings, Inc. | 3,800 | 92 | ||||||
Sony Corp. | 12,100 | 218 | ||||||
Stanley Electric Co. Ltd. | 1,633 | 35 | ||||||
Sumitomo Chemical Co. Ltd. | 20,000 | 71 | ||||||
Sumitomo Dainippon Pharma Co. Ltd. | 1,935 | 25 | ||||||
Sumitomo Electric Industries Ltd. | 8,600 | 127 | ||||||
Sumitomo Heavy Industries Ltd. | 6,000 | 34 | ||||||
Sumitomo Metal Mining Co. Ltd. | 6,000 | 85 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 15,000 | 612 | ||||||
Sumitomo Rubber Industries Ltd. | 1,700 | 24 | ||||||
Suntory Beverage & Food Ltd. | 1,600 | 57 | ||||||
Suzuken Co. Ltd. | 853 | 25 | ||||||
Sysmex Corp. | 1,742 | 70 | ||||||
T&D Holdings, Inc. | 6,400 | 82 | ||||||
Taiyo Nippon Sanso Corp. | 3,000 | 26 | ||||||
Takashimaya Co. Ltd. | 3,000 | 25 | ||||||
Takeda Pharmaceutical Co. Ltd. | 9,400 | 409 | ||||||
TDK Corp. | 1,500 | 84 | ||||||
Teijin Ltd. | 9,000 | 22 | ||||||
Toho Co. Ltd. | 1,500 | 34 | ||||||
Toho Gas Co. Ltd. | 4,000 | 23 | ||||||
Tokyo Electron Ltd. | 2,000 | 130 | ||||||
Tokyo Gas Co. Ltd. | 27,000 | 152 | ||||||
Tokyu Corp. | 13,000 | 85 | ||||||
Toppan Printing Co. Ltd. | 6,000 | 43 | ||||||
Toray Industries, Inc. | 17,000 | 112 | ||||||
TOTO Ltd. | 3,000 | 33 | ||||||
Toyo Seikan Group Holdings Ltd. | 1,600 | 20 | ||||||
Toyo Suisan Kaisha Ltd. | 1,000 | 33 | ||||||
Toyoda Gosei Co. Ltd. | 700 | 14 | ||||||
Toyota Industries Corp. | 1,900 | 92 | ||||||
Toyota Tsusho Corp. | 2,300 | 56 | ||||||
USS Co. Ltd. | 2,500 | 38 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 43 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
GLOBAL SUSTAINABILITY INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Japan – 8.8% – continued | ||||||||
Yakult Honsha Co. Ltd. | 1,000 | $53 | ||||||
Yamada Denki Co. Ltd. | 10,460 | 31 | ||||||
Yamaha Corp. | 2,200 | 29 | ||||||
Yamaha Motor Co. Ltd. | 3,100 | 61 | ||||||
Yaskawa Electric Corp. | 3,000 | 41 | ||||||
Yokogawa Electric Corp. | 2,600 | 34 | ||||||
17,205 | ||||||||
Netherlands – 1.4% | ||||||||
Aegon N.V. | 22,080 | 182 | ||||||
Akzo Nobel N.V. | 2,809 | 191 | ||||||
ASML Holding N.V. | 4,249 | 422 | ||||||
Core Laboratories N.V. | 500 | 73 | ||||||
Corio N.V. | 733 | 36 | ||||||
Delta Lloyd N.V. | 2,567 | 62 | ||||||
FugroN.V. – CVA | 791 | 24 | ||||||
Gemalto N.V. | 1,009 | 92 | ||||||
ING Groep N.V. – CVA * | 45,469 | 647 | ||||||
Koninklijke Ahold N.V. | 11,314 | 183 | ||||||
Koninklijke DSM N.V. | 2,016 | 124 | ||||||
Koninklijke KPN N.V. * | 36,449 | 116 | ||||||
Koninklijke Philips N.V. | 11,585 | 369 | ||||||
Koninklijke Vopak N.V. | 776 | 42 | ||||||
Wolters Kluwer N.V. | 3,506 | 93 | ||||||
2,656 | ||||||||
New Zealand – 0.1% | ||||||||
Auckland International Airport Ltd. | 11,412 | 34 | ||||||
Fletcher Building Ltd. | 7,599 | 52 | ||||||
Ryman Healthcare Ltd. | 3,934 | 24 | ||||||
110 | ||||||||
Norway – 0.5% | ||||||||
Aker Solutions ASA (1)* | 1,622 | 16 | ||||||
DNB ASA | 11,236 | 210 | ||||||
Norsk Hydro ASA | 14,855 | 83 | ||||||
Orkla ASA | 10,344 | 94 | ||||||
Statoil ASA | 13,334 | 363 | ||||||
Telenor ASA | 8,845 | 194 | ||||||
960 | ||||||||
Portugal – 0.1% | ||||||||
Banco Espirito Santo S.A. (Registered) * | 29,034 | – | ||||||
EDP – Energias de Portugal S.A. | 26,186 | 114 | ||||||
Galp Energia SGPS S.A. | 4,650 | 75 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Portugal – 0.1% – continued | ||||||||
Jeronimo Martins SGPS S.A. | 2,778 | $31 | ||||||
220 | ||||||||
Singapore – 0.3% | ||||||||
Ascendas Real Estate Investment Trust | 24,000 | 42 | ||||||
CapitaLand Ltd. | 30,000 | 75 | ||||||
CapitaMall Trust | 27,000 | 40 | ||||||
City Developments Ltd. | 5,000 | 38 | ||||||
Jardine Cycle & Carriage Ltd. | 1,000 | 34 | ||||||
Keppel Corp. Ltd. | 17,000 | 140 | ||||||
Keppel Land Ltd. | 7,000 | 19 | ||||||
Singapore Airlines Ltd. | 6,000 | 46 | ||||||
Singapore Press Holdings Ltd. | 19,000 | 63 | ||||||
497 | ||||||||
South Africa – 0.0% | ||||||||
Investec PLC | 6,523 | 55 | ||||||
Spain – 1.3% | ||||||||
Abertis Infraestructuras S.A. | 4,633 | 91 | ||||||
Amadeus IT Holding S.A., Class A | 4,312 | 161 | ||||||
Banco Bilbao Vizcaya Argentaria S.A. | 69,340 | 831 | ||||||
CaixaBank S.A. | 20,289 | 122 | ||||||
Distribuidora Internacional de | ||||||||
Alimentacion S.A. | 6,891 | 49 | ||||||
Enagas S.A. | 2,626 | 85 | ||||||
Ferrovial S.A. | 4,765 | 92 | ||||||
Iberdrola S.A. | 60,254 | 430 | ||||||
Inditex S.A. | 13,033 | 359 | ||||||
Red Electrica Corp. S.A. | 1,297 | 112 | ||||||
Repsol S.A. | 11,740 | 278 | ||||||
2,610 | ||||||||
Sweden – 1.7% | ||||||||
Alfa Laval AB | 3,856 | 82 | ||||||
Assa Abloy AB, Class B | 4,037 | 207 | ||||||
Atlas Copco AB, Class A | 7,709 | 220 | ||||||
Atlas Copco AB, Class B | 4,456 | 115 | ||||||
Autoliv, Inc. | 1,113 | 102 | ||||||
Boliden AB | 3,460 | 56 | ||||||
Electrolux AB, Series B | 2,800 | 74 | ||||||
Hennes & Mauritz AB, Class B | 11,261 | 467 | ||||||
Industrivarden AB, Class C | 1,504 | 26 | ||||||
Investment AB Kinnevik, Class B | 2,814 | 102 | ||||||
Millicom International Cellular S.A. SDR | 720 | 58 | ||||||
Nordea Bank AB | 36,017 | 467 | ||||||
Sandvik AB | 12,086 | 136 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 44 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Sweden – 1.7% – continued | ||||||||
Skandinaviska Enskilda Banken AB, Class A | 17,432 | $232 | ||||||
Skanska AB, Class B | 4,355 | 90 | ||||||
SKF AB, Class B | 4,519 | 94 | ||||||
Svenska Cellulosa AB S.C.A., Class B | 6,749 | 160 | ||||||
Swedbank AB, Class A | 10,586 | 265 | ||||||
Tele2 AB, Class B | 3,419 | 41 | ||||||
TeliaSonera AB | 28,818 | 199 | ||||||
Volvo AB, Class B | 18,693 | 202 | ||||||
3,395 | ||||||||
Switzerland – 4.3% | ||||||||
ACE Ltd. | 4,014 | 421 | ||||||
Actelion Ltd. (Registered) * | 1,264 | 148 | ||||||
Aryzta A.G. * | 1,060 | 91 | ||||||
Coca-Cola HBC A.G. – CDI * | 2,191 | 47 | ||||||
Geberit A.G. (Registered) | 436 | 141 | ||||||
Givaudan S.A. (Registered) * | 105 | 167 | ||||||
Holcim Ltd. (Registered) * | 2,627 | 191 | ||||||
Kuehne + Nagel International A.G. (Registered) | 590 | 74 | ||||||
Lindt & Spruengli A.G. (Registered) | 1 | 59 | ||||||
Lindt & Spruengli A.G. (Participation Certificate) | 11 | 55 | ||||||
Lonza Group A.G. (Registered) * | 681 | 82 | ||||||
Novartis A.G. (Registered) | 27,023 | 2,545 | ||||||
Roche Holding A.G. (Genusschein) | 8,254 | 2,444 | ||||||
SGS S.A. (Registered) | 62 | 128 | ||||||
STMicroelectronics N.V. | 7,391 | 57 | ||||||
Sulzer A.G. (Registered) | 286 | 35 | ||||||
Swiss Re A.G. * | 4,081 | 325 | ||||||
Swisscom A.G. (Registered) | 264 | 150 | ||||||
Tyco International Ltd. | 5,316 | 237 | ||||||
Weatherford International PLC * | 9,315 | 194 | ||||||
Wolseley PLC | 3,227 | 170 | ||||||
Zurich Insurance Group A.G. * | 1,766 | 525 | ||||||
8,286 | ||||||||
United Kingdom – 8.8% | ||||||||
3i Group PLC | 11,963 | 74 | ||||||
Aberdeen Asset Management PLC | 10,724 | 69 | ||||||
Aggreko PLC | 3,130 | 78 | ||||||
AMEC PLC | 3,220 | 57 | ||||||
Associated British Foods PLC | 4,098 | 178 | ||||||
Aviva PLC | 34,379 | 290 | ||||||
BG Group PLC | 40,191 | 739 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
United Kingdom – 8.8% – continued | ||||||||
British Land (The) Co. PLC | 11,074 | $126 | ||||||
BT Group PLC | 93,523 | 573 | ||||||
Bunzl PLC | 3,821 | 99 | ||||||
Capita PLC | 7,493 | 141 | ||||||
Centrica PLC | 60,102 | 299 | ||||||
CNH Industrial N.V. | 10,777 | 86 | ||||||
Croda International PLC | 1,475 | 49 | ||||||
Delphi Automotive PLC | 3,502 | 215 | ||||||
easyJet PLC | 1,749 | 40 | ||||||
Ensco PLC, Class A | 2,700 | 112 | ||||||
GKN PLC | 18,720 | 96 | ||||||
GlaxoSmithKline PLC | 57,132 | 1,308 | ||||||
Hammerson PLC | 8,319 | 77 | ||||||
HSBC Holdings PLC | 224,060 | 2,280 | ||||||
InterContinental Hotels Group PLC | 2,944 | 114 | ||||||
Intertek Group PLC | 2,078 | 88 | ||||||
Intu Properties PLC | 10,236 | 54 | ||||||
ITV PLC | 46,905 | 158 | ||||||
J Sainsbury PLC | 14,421 | 59 | ||||||
Johnson Matthey PLC | 2,368 | 111 | ||||||
Kingfisher PLC | 27,280 | 143 | ||||||
Land Securities Group PLC | 8,992 | 151 | ||||||
Legal & General Group PLC | 67,866 | 252 | ||||||
Liberty Global PLC, Class A * | 2,381 | 101 | ||||||
Liberty Global PLC, Series C * | 6,179 | 253 | ||||||
London Stock Exchange Group PLC | 2,851 | 86 | ||||||
Marks & Spencer Group PLC | 19,461 | 127 | ||||||
Meggitt PLC | 9,900 | 72 | �� | |||||
National Grid PLC | 44,079 | 632 | ||||||
Next PLC | 1,871 | 200 | ||||||
Noble Corp. PLC | 2,900 | 64 | ||||||
Old Mutual PLC | 59,578 | 175 | ||||||
Pearson PLC | 9,674 | 194 | ||||||
Pentair PLC | 2,292 | 150 | ||||||
Petrofac Ltd. | 2,812 | 47 | ||||||
Prudential PLC | 30,227 | 671 | ||||||
Reckitt Benckiser Group PLC | 7,669 | 664 | ||||||
Reed Elsevier N.V. | 8,230 | 187 | ||||||
Reed Elsevier PLC | 7,347 | 117 | ||||||
Reed Elsevier PLC | 6,480 | 104 | ||||||
Rexam PLC | 7,727 | 62 | ||||||
RSA Insurance Group PLC * | 11,763 | 92 | ||||||
Schroders PLC | 1,460 | 56 | ||||||
Segro PLC | 8,179 | 48 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 45 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
GLOBAL SUSTAINABILITY INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
United Kingdom – 8.8% – continued | ||||||||
Smiths Group PLC | 4,580 | $94 | ||||||
Sports Direct International PLC * | 2,928 | 29 | ||||||
SSE PLC | 11,294 | 282 | ||||||
Standard Chartered PLC | 29,167 | 537 | ||||||
Standard Life PLC | 28,869 | 193 | ||||||
Subsea 7 S.A. | 3,406 | 49 | ||||||
Tate & Lyle PLC | 5,144 | 49 | ||||||
Tesco PLC | 93,459 | 280 | ||||||
Travis Perkins PLC | 3,010 | 81 | ||||||
Tullow Oil PLC | 10,217 | 106 | ||||||
Unilever N.V. – CVA | 19,195 | 763 | ||||||
Unilever PLC | 15,139 | 632 | ||||||
United Utilities Group PLC | 8,165 | 106 | ||||||
Vodafone Group PLC | 311,242 | 1,026 | ||||||
Whitbread PLC | 2,086 | 140 | ||||||
William Hill PLC | 9,456 | 57 | ||||||
Willis Group Holdings PLC | 1,967 | 81 | ||||||
WM Morrison Supermarkets PLC | 24,825 | 68 | ||||||
WPP PLC | 15,292 | 306 | ||||||
17,097 | ||||||||
United States – 53.3% | ||||||||
3M Co. | 7,316 | 1,037 | ||||||
Abbott Laboratories | 17,694 | 736 | ||||||
Accenture PLC, Class A | 7,470 | 607 | ||||||
Adobe Systems, Inc. * | 5,597 | 387 | ||||||
Aetna, Inc. | 4,135 | 335 | ||||||
Aflac, Inc. | 5,234 | 305 | ||||||
AGCO Corp. | 961 | 44 | ||||||
Agilent Technologies, Inc. | 4,032 | 230 | ||||||
Air Products & Chemicals, Inc. | 2,523 | 328 | ||||||
Albemarle Corp. | 900 | 53 | ||||||
Alexion Pharmaceuticals, Inc. * | 2,288 | 379 | ||||||
Alliant Energy Corp. | 1,208 | 67 | ||||||
American Express Co. | 11,216 | 982 | ||||||
American Tower Corp. | 4,700 | 440 | ||||||
American Water Works Co., Inc. | 2,070 | 100 | ||||||
Ameriprise Financial, Inc. | 2,197 | 271 | ||||||
AmerisourceBergen Corp. | 2,600 | 201 | ||||||
AMETEK, Inc. | 3,002 | 151 | ||||||
Amgen, Inc. | 8,866 | 1,245 | ||||||
Analog Devices, Inc. | 3,691 | 183 | ||||||
Annaly Capital Management, Inc. | 10,800 | 115 | ||||||
ANSYS, Inc. * | 1,010 | 76 | ||||||
Antero Resources Corp. * | 615 | 34 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
United States – 53.3% – continued | ||||||||
Apache Corp. | 4,481 | $421 | ||||||
Applied Materials, Inc. | 14,027 | 303 | ||||||
Autodesk, Inc. * | 2,600 | 143 | ||||||
AutoZone, Inc. * | 383 | 195 | ||||||
AvalonBay Communities, Inc. | 1,490 | 210 | ||||||
Avery Dennison Corp. | 1,138 | 51 | ||||||
Avon Products, Inc. | 5,067 | 64 | ||||||
Axis Capital Holdings Ltd. | 1,100 | 52 | ||||||
Baker Hughes, Inc. | 5,218 | 339 | ||||||
Ball Corp. | 1,597 | 101 | ||||||
Bank of New York Mellon (The) Corp. | 13,489 | 522 | ||||||
BB&T Corp. | 8,276 | 308 | ||||||
Becton Dickinson and Co. | 2,328 | 265 | ||||||
Bed Bath & Beyond, Inc. * | 2,323 | 153 | ||||||
Berkshire Hathaway, Inc., Class B * | 13,199 | 1,823 | ||||||
Best Buy Co., Inc. | 3,426 | 115 | ||||||
Biogen Idec, Inc. * | 2,778 | 919 | ||||||
BioMarin Pharmaceutical, Inc. * | 1,709 | 123 | ||||||
BlackRock, Inc. | 1,579 | 518 | ||||||
BorgWarner, Inc. | 2,620 | 138 | ||||||
Boston Properties, Inc. | 1,755 | 203 | ||||||
Bristol-Myers Squibb Co. | 19,467 | 996 | ||||||
Bunge Ltd. | 1,699 | 143 | ||||||
C.H. Robinson Worldwide, Inc. | 1,770 | 117 | ||||||
CA, Inc. | 4,128 | 115 | ||||||
Cablevision Systems Corp., Class A (New York Group) | 1,991 | 35 | ||||||
Calpine Corp. * | 4,565 | 99 | ||||||
Cameron International Corp. * | 2,388 | 159 | ||||||
Campbell Soup Co. | 2,362 | 101 | ||||||
Capital One Financial Corp. | 6,756 | 551 | ||||||
Cardinal Health, Inc. | 3,940 | 295 | ||||||
CarMax, Inc. * | 2,585 | 120 | ||||||
Caterpillar, Inc. | 6,991 | 692 | ||||||
CBRE Group, Inc., Class A * | 3,529 | 105 | ||||||
Celanese Corp., Series A | 1,828 | 107 | ||||||
CenterPoint Energy, Inc. | 4,710 | 115 | ||||||
CenturyLink, Inc. | 6,599 | 270 | ||||||
Cerner Corp. * | 3,713 | 221 | ||||||
Charles Schwab (The) Corp. | 13,609 | 400 | ||||||
Charter Communications, Inc., Class A * | 883 | 134 | ||||||
Cheniere Energy, Inc. * | 2,660 | 213 | ||||||
Chipotle Mexican Grill, Inc. * | 362 | 241 | ||||||
Chubb (The) Corp. | 2,817 | 257 | ||||||
Cigna Corp. | 3,113 | 282 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 46 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
United States – 53.3% – continued | ||||||||
Cimarex Energy Co. | 1,000 | $127 | ||||||
Cisco Systems, Inc. | 60,246 | 1,516 | ||||||
CIT Group, Inc. | 2,200 | 101 | ||||||
Clorox (The) Co. | 1,489 | 143 | ||||||
CME Group, Inc. | 3,791 | 303 | ||||||
CMS Energy Corp. | 3,254 | 97 | ||||||
Coca-Cola Enterprises, Inc. | 2,800 | 124 | ||||||
Cognizant Technology Solutions Corp., Class A * | 7,207 | 323 | ||||||
Colgate-Palmolive Co. | 10,790 | 704 | ||||||
Comerica, Inc. | 2,100 | 105 | ||||||
ConAgra Foods, Inc. | 5,086 | 168 | ||||||
Concho Resources, Inc. * | 1,279 | 160 | ||||||
Consolidated Edison, Inc. | 3,555 | 201 | ||||||
Continental Resources, Inc. * | 1,114 | 74 | ||||||
Corning, Inc. | 15,661 | 303 | ||||||
Crown Castle International Corp. | 3,991 | 321 | ||||||
CSX Corp. | 11,942 | 383 | ||||||
Cummins, Inc. | 2,013 | 266 | ||||||
Danaher Corp. | 7,439 | 565 | ||||||
Darden Restaurants, Inc. | 1,530 | 79 | ||||||
DaVita HealthCare Partners, Inc. * | 1,997 | 146 | ||||||
Deere & Co. | 4,025 | 330 | ||||||
Denbury Resources, Inc. | 4,100 | 62 | ||||||
DENTSPLY International, Inc. | 1,666 | 76 | ||||||
Devon Energy Corp. | 4,614 | 315 | ||||||
Digital Realty Trust, Inc. | 1,551 | 97 | ||||||
DIRECTV* | 5,663 | 490 | ||||||
Discover Financial Services | 5,573 | 359 | ||||||
Discovery Communications, Inc., Class A * | 1,692 | 64 | ||||||
Discovery Communications, Inc., Class C * | 3,390 | 126 | ||||||
Dover Corp. | 1,961 | 158 | ||||||
Dr. Pepper Snapple Group, Inc. | 2,289 | 147 | ||||||
Duke Energy Corp. | 8,349 | 624 | ||||||
Duke Realty Corp. | 3,600 | 62 | ||||||
Dun & Bradstreet (The) Corp. | 423 | 50 | ||||||
Eastman Chemical Co. | 1,774 | 143 | ||||||
Eaton Corp. PLC | 5,690 | 361 | ||||||
Ecolab, Inc. | 3,202 | 368 | ||||||
Edwards Lifesciences Corp. * | 1,200 | 123 | ||||||
EMC Corp. | 24,133 | 706 | ||||||
Energen Corp. | 800 | 58 | ||||||
Energizer Holdings, Inc. | 700 | 86 | ||||||
EOG Resources, Inc. | 6,444 | 638 | ||||||
EQT Corp. | 1,848 | 169 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
United States – 53.3% – continued | ||||||||
Equifax, Inc. | 1,413 | $106 | ||||||
Equinix, Inc. * | 586 | 125 | ||||||
Equity Residential | 4,142 | 255 | ||||||
Estee Lauder (The) Cos., Inc., Class A | 2,747 | 205 | ||||||
Expeditors International of Washington, Inc. | 2,388 | 97 | ||||||
Fastenal Co. | 3,339 | 150 | ||||||
Federal Realty Investment Trust | 757 | 90 | ||||||
FleetCor Technologies, Inc. * | 865 | 123 | ||||||
Flextronics International Ltd. * | 7,118 | 73 | ||||||
Fluor Corp. | 1,838 | 123 | ||||||
FMC Technologies, Inc. * | 2,700 | 147 | ||||||
Ford Motor Co. | 43,486 | 643 | ||||||
Franklin Resources, Inc. | 4,701 | 257 | ||||||
GameStop Corp., Class A | 1,377 | 57 | ||||||
Gap (The), Inc. | 2,775 | 116 | ||||||
General Mills, Inc. | 7,343 | 370 | ||||||
Genuine Parts Co. | 1,870 | 164 | ||||||
Genworth Financial, Inc., Class A * | 5,440 | 71 | ||||||
Gilead Sciences, Inc. * | 18,006 | 1,917 | ||||||
Google, Inc., Class A * | 3,303 | 1,944 | ||||||
Google, Inc., Class C * | 3,361 | 1,941 | ||||||
Harley-Davidson, Inc. | 2,521 | 147 | ||||||
Hartford Financial Services Group (The), Inc. | 5,186 | 193 | ||||||
Hasbro, Inc. | 1,400 | 77 | ||||||
HCP, Inc. | 5,328 | 212 | ||||||
Health Care REIT, Inc. | 3,847 | 240 | ||||||
Henry Schein, Inc. * | 994 | 116 | ||||||
Herbalife Ltd. | 1,001 | 44 | ||||||
Hertz Global Holdings, Inc. * | 5,100 | 129 | ||||||
Hess Corp. | 3,386 | 319 | ||||||
Hewlett-Packard Co. | 22,327 | 792 | ||||||
Hologic, Inc. * | 2,377 | 58 | ||||||
Hormel Foods Corp. | 1,700 | 87 | ||||||
Host Hotels & Resorts, Inc. | 9,145 | 195 | ||||||
Humana, Inc. | 1,851 | 241 | ||||||
IHS, Inc., Class A * | 796 | 100 | ||||||
Illinois Tool Works, Inc. | 4,654 | 393 | ||||||
Ingersoll-Rand PLC | 3,179 | 179 | ||||||
Integrys Energy Group, Inc. | 938 | 61 | ||||||
Intel Corp. | 58,460 | 2,036 | ||||||
Intercontinental Exchange, Inc. | 1,378 | 269 | ||||||
International Business Machines Corp. | 11,297 | 2,145 | ||||||
International Flavors & Fragrances, Inc. | 900 | 86 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 47 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
GLOBAL SUSTAINABILITY INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
United States – 53.3% – continued | ||||||||
International Paper Co. | 4,747 | $227 | ||||||
Intuit, Inc. | 3,100 | 272 | ||||||
Invesco Ltd. | 5,000 | 197 | ||||||
Iron Mountain, Inc. | 1,899 | 62 | ||||||
Jacobs Engineering Group, Inc. * | 1,529 | 75 | ||||||
JM Smucker (The) Co. | 1,200 | 119 | ||||||
Johnson & Johnson | 33,188 | 3,538 | ||||||
Johnson Controls, Inc. | 7,938 | 349 | ||||||
Joy Global, Inc. | 1,090 | 59 | ||||||
Kellogg Co. | 3,105 | 191 | ||||||
Keurig Green Mountain, Inc. | 1,421 | 185 | ||||||
KeyCorp | 10,219 | 136 | ||||||
Kimberly-Clark Corp. | 4,464 | 480 | ||||||
Kinder Morgan Management LLC * | 1,225 | 115 | ||||||
Kohl’s Corp. | 2,381 | 145 | ||||||
Kraft Foods Group, Inc. | 7,089 | 400 | ||||||
Kroger (The) Co. | 5,600 | 291 | ||||||
Laboratory Corp. of America Holdings * | 1,000 | 102 | ||||||
Lam Research Corp. | 1,900 | 142 | ||||||
Legg Mason, Inc. | 1,200 | 61 | ||||||
Level 3 Communications, Inc. * | 2,116 | 97 | ||||||
Liberty Interactive Corp., Class A * | 5,322 | 152 | ||||||
Liberty Property Trust | 1,700 | 57 | ||||||
LKQ Corp. * | 3,492 | 93 | ||||||
Lowe’s Cos., Inc. | 11,947 | 632 | ||||||
LyondellBasell Industries N.V., Class A | 5,297 | 576 | ||||||
M&T Bank Corp. | 1,446 | 178 | ||||||
Macerich (The) Co. | 1,628 | 104 | ||||||
Macy’s, Inc. | 4,363 | 254 | ||||||
Manpowergroup, Inc. | 900 | 63 | ||||||
Marathon Oil Corp. | 8,036 | 302 | ||||||
Marathon Petroleum Corp. | 3,337 | 283 | ||||||
Marriott International, Inc., Class A | 2,716 | 190 | ||||||
Marsh & McLennan Cos., Inc. | 6,389 | 334 | ||||||
Masco Corp. | 3,940 | 94 | ||||||
Mattel, Inc. | 3,848 | 118 | ||||||
McCormick & Co., Inc. (Non Voting) | 1,391 | 93 | ||||||
McDonald’s Corp. | 11,633 | 1,103 | ||||||
MDU Resources Group, Inc. | 2,000 | 56 | ||||||
Mead Johnson Nutrition Co. | 2,322 | 223 | ||||||
MeadWestvaco Corp. | 1,938 | 79 | ||||||
Medtronic, Inc. | 11,773 | 729 | ||||||
Merck & Co., Inc. | 34,284 | 2,032 | ||||||
Mettler-Toledo International, Inc. * | 346 | 89 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
United States – 53.3% – continued | ||||||||
MGM Resorts International * | 4,539 | $103 | ||||||
Microchip Technology, Inc. | 2,300 | 109 | ||||||
Mohawk Industries, Inc. * | 717 | 97 | ||||||
Mondelez International, Inc., Class A | 19,941 | 683 | ||||||
Mosaic (The) Co. | 3,798 | 169 | ||||||
Motorola Solutions, Inc. | 2,640 | 167 | ||||||
NASDAQ OMX Group (The), Inc. | 1,300 | 55 | ||||||
National Oilwell Varco, Inc. | 5,102 | 388 | ||||||
Netflix, Inc. * | 681 | 307 | ||||||
NetSuite, Inc. * | 400 | 36 | ||||||
New York Community Bancorp, Inc. | 5,136 | 82 | ||||||
Newell Rubbermaid, Inc. | 3,432 | 118 | ||||||
NextEra Energy, Inc. | 5,167 | 485 | ||||||
NIKE, Inc., Class B | 8,231 | 734 | ||||||
NiSource, Inc. | 3,618 | 148 | ||||||
Noble Energy, Inc. | 4,304 | 294 | ||||||
Nordstrom, Inc. | 1,695 | 116 | ||||||
Norfolk Southern Corp. | 3,676 | 410 | ||||||
Northeast Utilities | 3,724 | 165 | ||||||
Northern Trust Corp. (2)(3) | 2,400 | 163 | ||||||
Nucor Corp. | 3,821 | 207 | ||||||
NVIDIA Corp. | 6,256 | 115 | ||||||
Occidental Petroleum Corp. | 9,251 | 889 | ||||||
Oceaneering International, Inc. | 1,200 | 78 | ||||||
ONEOK, Inc. | 2,377 | 156 | ||||||
Oracle Corp. | 41,944 | 1,606 | ||||||
Owens-Illinois, Inc. * | 1,879 | 49 | ||||||
PACCAR, Inc. | 4,132 | 235 | ||||||
Pall Corp. | 1,283 | 107 | ||||||
Parker Hannifin Corp. | 1,805 | 206 | ||||||
PartnerRe Ltd. | 564 | 62 | ||||||
Patterson Cos., Inc. | 881 | 37 | ||||||
People’s United Financial, Inc. | 3,347 | 48 | ||||||
Pepco Holdings, Inc. | 3,052 | 82 | ||||||
PepsiCo, Inc. | 17,826 | 1,659 | ||||||
PetSmart, Inc. | 1,100 | 77 | ||||||
Phillips 66 | 6,687 | 544 | ||||||
Pinnacle West Capital Corp. | 1,200 | 66 | ||||||
Pioneer Natural Resources Co. | 1,714 | 338 | ||||||
Plum Creek Timber Co., Inc. | 2,060 | 80 | ||||||
PNC Financial Services Group (The), Inc. | 6,315 | 540 | ||||||
Polaris Industries, Inc. | 724 | 108 | ||||||
Praxair, Inc. | 3,474 | 448 | ||||||
Precision Castparts Corp. | 1,722 | 408 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 48 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
United States – 53.3% – continued | ||||||||
Principal Financial Group, Inc. | 3,552 | $186 | ||||||
Procter & Gamble (The) Co. | 31,786 | 2,662 | ||||||
Progressive (The) Corp. | 6,471 | 164 | ||||||
ProLogis, Inc. | 5,831 | 220 | ||||||
Prudential Financial, Inc. | 5,448 | 479 | ||||||
Public Service Enterprise Group, Inc. | 6,062 | 226 | ||||||
PVH Corp. | 982 | 119 | ||||||
QEP Resources, Inc. | 2,100 | 65 | ||||||
QUALCOMM, Inc. | 19,851 | 1,484 | ||||||
Quanta Services, Inc. * | 2,575 | 93 | ||||||
Rackspace Hosting, Inc. * | 1,308 | 43 | ||||||
Range Resources Corp. | 1,881 | 128 | ||||||
Raymond James Financial, Inc. | 1,604 | 86 | ||||||
RenaissanceRe Holdings Ltd. | 423 | 42 | ||||||
ResMed, Inc. | 1,547 | 76 | ||||||
Robert Half International, Inc. | 1,600 | 78 | ||||||
Rock-Tenn Co., Class A | 1,654 | 79 | ||||||
Rockwell Automation, Inc. | 1,683 | 185 | ||||||
Rockwell Collins, Inc. | 1,432 | 112 | ||||||
Roper Industries, Inc. | 1,145 | 168 | ||||||
Ross Stores, Inc. | 2,502 | 189 | ||||||
Royal Caribbean Cruises Ltd. | 1,951 | 131 | ||||||
Safeway, Inc. | 2,700 | 93 | ||||||
salesforce.com, Inc. * | 6,937 | 399 | ||||||
Scripps Networks Interactive, Inc., Class A | 900 | 70 | ||||||
Sealed Air Corp. | 2,467 | 86 | ||||||
SEI Investments Co. | 1,554 | 56 | ||||||
Sempra Energy | 2,723 | 287 | ||||||
Sherwin-Williams (The) Co. | 977 | 214 | ||||||
Sigma-Aldrich Corp. | 1,382 | 188 | ||||||
Simon Property Group, Inc. | 3,681 | 605 | ||||||
Southwest Airlines Co. | 1,890 | 64 | ||||||
Southwestern Energy Co. * | 4,044 | 141 | ||||||
Spectra Energy Corp. | 8,058 | 316 | ||||||
Sprint Corp. * | 8,633 | 55 | ||||||
Staples, Inc. | 7,155 | 87 | ||||||
Starbucks Corp. | 8,876 | 670 | ||||||
Starwood Hotels & Resorts Worldwide, Inc. | 2,204 | 183 | ||||||
State Street Corp. | 5,138 | 378 | ||||||
Superior Energy Services, Inc. | 1,778 | 58 | ||||||
Symantec Corp. | 8,360 | 197 | ||||||
Sysco Corp. | 7,021 | 266 | ||||||
T Rowe Price Group, Inc. | 3,052 | 239 | ||||||
TD Ameritrade Holding Corp. | 3,313 | 111 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
United States – 53.3% – continued | ||||||||
Teradata Corp. * | 1,900 | $80 | ||||||
Tesla Motors, Inc. * | 1,000 | 243 | ||||||
Tesoro Corp. | 1,548 | 94 | ||||||
Texas Instruments, Inc. | 12,731 | 607 | ||||||
Thermo Fisher Scientific, Inc. | 4,700 | 572 | ||||||
Tiffany & Co. | 1,467 | 141 | ||||||
Time Warner Cable, Inc. | 3,302 | 474 | ||||||
Time Warner, Inc. | 10,384 | 781 | ||||||
TJX (The) Cos., Inc. | 8,276 | 490 | ||||||
Tractor Supply Co. | 1,617 | 99 | ||||||
Travelers (The) Cos., Inc. | 4,022 | 378 | ||||||
Trimble Navigation Ltd. * | 3,137 | 96 | ||||||
TripAdvisor, Inc. * | 1,436 | 131 | ||||||
UDR, Inc. | 3,025 | 82 | ||||||
Ulta Salon Cosmetics & Fragrance, Inc. * | 700 | 83 | ||||||
Under Armour, Inc., Class A * | 1,937 | 134 | ||||||
Union Pacific Corp. | 10,614 | 1,151 | ||||||
United Parcel Service, Inc., Class B | 8,319 | 818 | ||||||
United Rentals, Inc. * | 1,144 | 127 | ||||||
US Bancorp | 21,375 | 894 | ||||||
Varian Medical Systems, Inc. * | 1,200 | 96 | ||||||
Ventas, Inc. | 3,447 | 214 | ||||||
Verizon Communications, Inc. | 48,653 | 2,432 | ||||||
Vertex Pharmaceuticals, Inc. * | 2,797 | 314 | ||||||
VF Corp. | 4,133 | 273 | ||||||
Vornado Realty Trust | 1,934 | 193 | ||||||
Waste Management, Inc. | 5,093 | 242 | ||||||
Waters Corp. * | 1,000 | 99 | ||||||
Weyerhaeuser Co. | 6,170 | 197 | ||||||
Whirlpool Corp. | 906 | 132 | ||||||
Whiting Petroleum Corp. * | 1,342 | 104 | ||||||
Whole Foods Market, Inc. | 4,313 | 164 | ||||||
Williams (The) Cos., Inc. | 8,321 | 461 | ||||||
Wisconsin Energy Corp. | 2,600 | 112 | ||||||
Workday, Inc., Class A * | 1,099 | 91 | ||||||
WW Grainger, Inc. | 717 | 180 | ||||||
Wyndham Worldwide Corp. | 1,568 | 127 | ||||||
Xcel Energy, Inc. | 6,153 | 187 | ||||||
Xerox Corp. | 12,922 | 171 | ||||||
Xylem, Inc. | 2,100 | 75 | ||||||
Yahoo!, Inc. * | 11,316 | 461 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 49 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
GLOBAL SUSTAINABILITY INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
United States – 53.3% – continued |
| |||||||
Zoetis, Inc. | 5,808 | $215 | ||||||
103,798 | ||||||||
Total Common Stocks (4) | ||||||||
(Cost $142,414) | 190,232 | |||||||
PREFERRED STOCKS – 0.4% | ||||||||
Germany – 0.4% | ||||||||
Bayerische Motoren Werke A.G. | 600 | 49 | ||||||
Henkel A.G. & Co. KGaA | 2,145 | 214 | ||||||
Volkswagen A.G. | 1,934 | 401 | ||||||
664 | ||||||||
Total Preferred Stocks (4) | ||||||||
(Cost $598) | 664 | |||||||
RIGHTS – 0.0% | ||||||||
Spain – 0.0% | ||||||||
Banco Bilbao Vizcaya Argentaria S.A. * | 67,730 | 7 | ||||||
Total Rights (4) | ||||||||
(Cost $7) | 7 | |||||||
INVESTMENT COMPANIES – 2.4% | ||||||||
Northern Institutional Funds – Diversified Assets Portfolio, 0.01% (5)(6) | 4,692,410 | 4,692 | ||||||
Total Investment Companies | ||||||||
(Cost $4,692) | 4,692 | |||||||
Total Investments – 100.5% | ||||||||
(Cost $147,711) | 195,595 | |||||||
Liabilities less Other Assets – (0.5)% | (946 | ) | ||||||
NET ASSETS – 100.0% | $194,649 |
(1) | Restricted security that has been deemed illiquid. At September 30, 2014, the value of these restricted illiquid securities amounted to approximately $16,000 or 0.0% of net assets. Additional information on each restricted illiquid security is as follows: |
SECURITY | ACQUISITION AND ENFORCEABLE DATE | ACQUISITION (000s) | ||||||
Aker Solutions ASA | 08/31/10-02/29/12 | $15 |
(2) | At March 31, 2014, the value of the Fund’s investment in Northern Trust Corp. was approximately $157,000. There were no purchases and sales during the six months ended September 30, 2014. The change in net unrealized appreciation during the six months ended September 30, 2014, was approximately $6,000. |
(3) | Investment in affiliate. |
(4) | In accordance with the Fund’s prospectus, adjustment factors were provided by an independent evaluation service to determine the value of certain foreign securities. |
(5) | At March 31, 2014, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $3,015,000 with net purchases of approximately $1,677,000 during the six months ended September 30, 2014. |
(6) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
* | Non-Income Producing Security |
Percentages shown are based on Net Assets.
At September 30, 2014, the Fund had outstanding forward foreign currency exchange contracts as follows:
COUNTERPARTY | CONTRACTS TO DELIVER CURRENCY | AMOUNT (LOCAL CURRENCY) (000s) | IN EXCHANGE FOR CURRENCY | AMOUNT (LOCAL CURRENCY) (000s) | SETTLEMENT DATE | UNREALIZED GAINS (LOSSES) (000s) | ||||||||||||||
Goldman Sachs | Swiss Franc | 134 | United States Dollar | 140 | 12/17/14 | $–* | ||||||||||||||
Citibank | United States Dollar | 125 | British Pound | 77 | 12/17/14 | –* | ||||||||||||||
Goldman Sachs | United States Dollar | 108 | Canadian Dollar | 120 | 12/17/14 | (1) | ||||||||||||||
UBS | United States Dollar | 237 | Euro | 183 | 12/17/14 | (6) | ||||||||||||||
Morgan Stanley | United States Dollar | 133 | Japanese Yen | 14,293 | 12/17/14 | (3) | ||||||||||||||
Morgan Stanley | United States Dollar | 160 | Swiss Franc | 149 | 12/17/14 | (3) | ||||||||||||||
Total | $(13) |
* | Amount rounds to less than one thousand. |
At September 30, 2014, the Fund had open futures contracts as follows:
TYPE | NUMBER OF CONTRACTS | NOTIONAL AMOUNT (000s) | CONTRACT POSITION | CONTRACT EXP. | UNREALIZED GAINS (LOSSES) (000s) | |||||||||||||||
E-mini S&P 500 (United States Dollar) | 23 | $2,260 | Long | 12/14 | $–* | |||||||||||||||
Euro Stoxx 50 (Euro) | 13 | 529 | Long | 12/14 | 2 | |||||||||||||||
FTSE 100 Index (British Pound) | 3 | 321 | Long | 12/14 | (6) | |||||||||||||||
S&P/TSX 60 Index (Canadian Dollar) | 1 | 154 | Long | 12/14 | (6) | |||||||||||||||
SPI 200 Index (Australian Dollar) | 1 | 116 | Long | 12/14 | (4) |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 50 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
TYPE | NUMBER OF CONTRACTS | NOTIONAL AMOUNT (000s) | CONTRACT POSITION | CONTRACT EXP. | UNREALIZED GAINS (LOSSES) (000s) | |||||||||||||||
Topix Index (Japanese Yen) | 1 | 121 | Long | 12/14 | 3 | |||||||||||||||
Yen Denominated Nikkei 225 (Japanese Yen) | 4 | 295 | Long | 12/14 | 4 | |||||||||||||||
Total | $(7) |
* | Amount rounds to less than one thousand. |
At September 30, 2014, the industry sectors for the Fund were:
INDUSTRY SECTOR | % OF LONG-TERM INVESTMENTS | |||
Consumer Discretionary | 11.9% | |||
Consumer Staples | 9.0 | |||
Energy | 6.9 | |||
Financials | 22.0 | |||
Health Care | 14.0 | |||
Industrials | 10.9 | |||
Information Technology | 12.6 | |||
Materials | 5.4 | |||
Telecommunication Services | 3.9 | |||
Utilities | 3.4 | |||
Total | 100.0% |
At September 30, 2014, the Fund’s investments were denominated in the following currencies:
CONCENTRATION BY CURRENCY | % OF LONG-TERM INVESTMENTS | |||
United States Dollar | 55.7% | |||
Euro | 10.8 | |||
Japanese Yen | 9.0 | |||
British Pound | 8.0 | |||
Canadian Dollar | 5.1 | |||
All other currencies less than 5% | 11.4 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices). The Fund adjusted the price of certain foreign equity securities held in its portfolio on September 30, 2014 using adjustment factors designed to reflect more accurately the fair value of the securities. The fair valuation of these securities resulted in their categorization as Level 2 investments.
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000S) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Common Stocks | ||||||||||||||||
Canada | $9,738 | $– | $– | $9,738 | ||||||||||||
Hong Kong | 176 | 1,057 | – | 1,233 | ||||||||||||
Ireland | 335 | 326 | – | 661 | ||||||||||||
Netherlands | 73 | 2,583 | – | 2,656 | ||||||||||||
Norway | 17 | 943 | – | 960 | ||||||||||||
Portugal | – | 220 | – | * | 220 | |||||||||||
Sweden | 102 | 3,293 | – | 3,395 | ||||||||||||
Switzerland | 943 | 7,343 | – | 8,286 | ||||||||||||
United Kingdom | 977 | 16,120 | – | 17,097 | ||||||||||||
United States | 103,798 | – | – | 103,798 | ||||||||||||
All Other Countries | – | 42,188 | (1) | – | 42,188 | |||||||||||
Preferred Stocks | �� | 664 | (1) | – | 664 | |||||||||||
Rights | 7 | (1) | – | 7 | ||||||||||||
Investment Companies | 4,692 | – | – | 4,692 | ||||||||||||
Total Investments | $120,858 | $74,737 | $– | $195,595 | ||||||||||||
OTHER FINANCIAL INSTRUMENTS |
| |||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $9 | $– | $– | $9 | ||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | (16 | ) | – | – | (16 | ) | ||||||||||
Forward Foreign Currency Exchange Contracts | – | (13 | ) | – | (13 | ) | ||||||||||
Total Other Financial Instruments | $ | (7) | $ | (13) | $– | $ | (20) |
(1) | Classifications as defined in the Schedule of Investments. |
* | Amount rounds to less than one thousand. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, the Fund had transfers from Level 2 to Level 1 as disclosed below:
Transfers from Level 2 to Level 1 | ||||||
Country | Value (000s) | Reason | ||||
Common Stocks | ||||||
Switzerland | $91 | Valuations at last trade price |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 51 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
GLOBAL SUSTAINABILITY INDEX FUND continued | SEPTEMBER 30, 2014 (UNAUDITED) |
The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:
BALANCE AS OF 3/31/14 (000s) | REALIZED GAINS (000s) | CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | PURCHASES (000s) | SALES (000s) | TRANSFERS INTO LEVEL 3 | TRANSFERS OUT OF (000s) | BALANCE AS OF 9/30/14 (000s) | CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) FROM INVESTMENTS STILL HELD AT 9/30/14 (000s) | ||||||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||||||||||||
Portugal | $– | $– | $– | $– | $– | $– | * | $– | $– | * | $ | (46) |
(1) | The Transfers Into Level 3, noted above, are due to the Fund receiving valuations provided by the Asset Management PVC. |
* | Amount rounds to less than one thousand. |
The Fund valued the security included in the balance as of 9/30/14 above using prices provided by the Asset Management PVC.
FAIR VALUE AT 9/30/14 (000s) | VALUATION TECHNIQUES | UNOBSERVABLE INPUTS | ||||||
Common Stock | $– | * | Market Comparable Companies | Price to Earnings Multiple/Liquidity Discount |
* | Amount rounds to less than one thousand. |
The significant unobservable inputs used in the fair value measurement are the price to earnings multiple along with liquidity discounts. Significant increases (decreases) in the price to earnings multiple in isolation would result in a significantly higher (lower) fair value measurement while an increase (decrease) in liquidity discounts in isolation would result in a significantly lower (higher) fair value measurement.
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 52 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
INTERNATIONAL EQUITY INDEX FUND | SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% | ||||||||
Australia – 7.7% | ||||||||
AGL Energy Ltd. | 244,712 | $2,898 | ||||||
ALS Ltd. | 146,197 | 670 | ||||||
Alumina Ltd. * | 902,611 | 1,333 | ||||||
Amcor Ltd. | 437,688 | 4,345 | ||||||
AMP Ltd. | 1,117,224 | 5,322 | ||||||
APA Group | 321,852 | 2,092 | ||||||
Asciano Ltd. | 348,914 | 1,841 | ||||||
ASX Ltd. | 70,946 | 2,222 | ||||||
Aurizon Holdings Ltd. | 806,351 | 3,192 | ||||||
AusNet Services | 590,082 | 703 | ||||||
Australia & New Zealand Banking Group Ltd. | 1,015,728 | 27,445 | ||||||
Bank of Queensland Ltd. | 131,677 | 1,335 | ||||||
Bendigo and Adelaide Bank Ltd. | 152,102 | 1,582 | ||||||
BGP Holdings PLC (1)* | 1,085,479 | – | ||||||
BHP Billiton Ltd. | 1,186,796 | 34,920 | ||||||
BHP Billiton PLC | 778,214 | 21,606 | ||||||
Boral Ltd. | 305,145 | 1,321 | ||||||
Brambles Ltd. | 588,018 | 4,887 | ||||||
Caltex Australia Ltd. | 46,973 | 1,148 | ||||||
CFS Retail Property Trust Group | 750,453 | 1,308 | ||||||
Coca-Cola Amatil Ltd. | 200,479 | 1,538 | ||||||
Cochlear Ltd. | 22,443 | 1,364 | ||||||
Commonwealth Bank of Australia | 598,557 | 39,304 | ||||||
Computershare Ltd. | 182,195 | 1,941 | ||||||
Crown Resorts Ltd. | 140,336 | 1,688 | ||||||
CSL Ltd. | 177,890 | 11,529 | ||||||
Dexus Property Group | 1,949,833 | 1,896 | ||||||
Federation Centres | 491,715 | 1,111 | ||||||
Flight Centre Travel Group Ltd. | 19,406 | 724 | ||||||
Fortescue Metals Group Ltd. | 551,300 | 1,669 | ||||||
Goodman Group | 657,865 | 2,966 | ||||||
GPT Group (The) | 600,945 | 2,032 | ||||||
Harvey Norman Holdings Ltd. | 181,371 | 575 | ||||||
Iluka Resources Ltd. | 166,187 | 1,139 | ||||||
Incitec Pivot Ltd. | 569,950 | 1,346 | ||||||
Insurance Australia Group Ltd. | 847,650 | 4,545 | ||||||
James Hardie Industries PLC – CDI | 157,150 | 1,648 | ||||||
Leighton Holdings Ltd. | 35,751 | 602 | ||||||
Lend Lease Group | 205,181 | 2,578 | ||||||
Macquarie Group Ltd. | 106,810 | 5,374 | ||||||
Metcash Ltd. | 303,242 | 696 | ||||||
Mirvac Group | 1,388,909 | 2,093 | ||||||
National Australia Bank Ltd. | 865,925 | 24,566 | ||||||
Newcrest Mining Ltd. * | 286,329 | 2,630 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Australia – 7.7% – continued | ||||||||
Orica Ltd. | 139,614 | $2,299 | ||||||
Origin Energy Ltd. | 411,730 | 5,378 | ||||||
Qantas Airways Ltd. * | 374,168 | 453 | ||||||
QBE Insurance Group Ltd. | 496,811 | 5,060 | ||||||
Ramsay Health Care Ltd. | 50,360 | 2,202 | ||||||
REA Group Ltd. | 18,175 | 685 | ||||||
Santos Ltd. | 375,558 | 4,480 | ||||||
Scentre Group * | 2,004,862 | 5,741 | ||||||
Seek Ltd. | 115,799 | 1,634 | ||||||
Sonic Healthcare Ltd. | 143,380 | 2,198 | ||||||
Stockland | 869,884 | 3,003 | ||||||
Suncorp Group Ltd. | 479,987 | 5,884 | ||||||
Sydney Airport | 386,261 | 1,440 | ||||||
Tabcorp Holdings Ltd. | 313,616 | 990 | ||||||
Tatts Group Ltd. | 547,732 | 1,511 | ||||||
Telstra Corp. Ltd. | 1,599,489 | 7,400 | ||||||
Toll Holdings Ltd. | 267,047 | 1,314 | ||||||
TPG Telecom Ltd. * | 95,734 | 571 | ||||||
Transurban Group | 658,297 | 4,441 | ||||||
Treasury Wine Estates Ltd. | 223,853 | 830 | ||||||
Wesfarmers Ltd. | 422,036 | 15,525 | ||||||
Westfield Corp. * | 714,471 | 4,647 | ||||||
Westpac Banking Corp. | 1,148,749 | 32,182 | ||||||
Woodside Petroleum Ltd. | 274,645 | 9,738 | ||||||
Woolworths Ltd. | 463,193 | 13,848 | ||||||
WorleyParsons Ltd. | 72,277 | 966 | ||||||
370,144 | ||||||||
Austria – 0.2% | ||||||||
Andritz A.G. | 31,767 | 1,694 | ||||||
Erste Group Bank A.G. | 99,184 | 2,261 | ||||||
IMMOFINANZ A.G. | 391,385 | 1,107 | ||||||
OMV A.G. | 52,009 | 1,749 | ||||||
Raiffeisen Bank International A.G. | 40,597 | 877 | ||||||
Vienna Insurance Group A.G. Wiener Versicherung Gruppe | 13,656 | 615 | ||||||
Voestalpine A.G. | 43,767 | 1,730 | ||||||
10,033 | ||||||||
Belgium – 1.2% | ||||||||
Ageas | 84,328 | 2,800 | ||||||
Anheuser-Busch InBev N.V. | 297,511 | 33,003 | ||||||
Belgacom S.A. | 58,893 | 2,049 | ||||||
Colruyt S.A. | 26,050 | 1,147 | ||||||
Delhaize Group S.A. | 37,495 | 2,603 | ||||||
Groupe Bruxelles Lambert S.A. | 29,415 | 2,690 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 53 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
INTERNATIONAL EQUITY INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Belgium – 1.2% – continued | ||||||||
KBC Groep N.V. * | 93,188 | $4,919 | ||||||
Solvay S.A., Class A | 22,332 | 3,424 | ||||||
Telenet Group Holding N.V. * | 18,165 | 1,044 | ||||||
UCB S.A. | 46,140 | 4,188 | ||||||
Umicore S.A. | 38,624 | 1,686 | ||||||
59,553 | ||||||||
Denmark – 1.6% | ||||||||
AP Moeller – Maersk A/S, Class A | 1,413 | 3,249 | ||||||
AP Moeller – Maersk A/S, Class B | 2,674 | 6,336 | ||||||
Carlsberg A/S, Class B | 39,707 | 3,522 | ||||||
Coloplast A/S, Class B | 41,356 | 3,461 | ||||||
Danske Bank A/S | 243,450 | 6,598 | ||||||
DSV A/S | 63,735 | 1,790 | ||||||
Novo Nordisk A/S, Class B | 742,185 | 35,364 | ||||||
Novozymes A/S, Class B | 86,763 | 3,757 | ||||||
Pandora A/S | 43,442 | 3,398 | ||||||
RTL Group S.A. | 14,083 | 1,206 | ||||||
TDC A/S | 314,821 | 2,384 | ||||||
Tryg A/S | 7,333 | 760 | ||||||
Vestas Wind Systems A/S * | 81,390 | 3,160 | ||||||
William Demant Holding A/S * | 7,749 | 594 | ||||||
75,579 | ||||||||
Finland – 0.9% | ||||||||
Elisa OYJ | 61,292 | 1,622 | ||||||
Fortum OYJ | 164,194 | 3,991 | ||||||
Kone OYJ, Class B | 113,191 | 4,542 | ||||||
Metso OYJ | 40,539 | 1,440 | ||||||
Neste Oil OYJ | 43,640 | 898 | ||||||
Nokia OYJ | 1,389,694 | 11,819 | ||||||
Nokian Renkaat OYJ | 39,797 | 1,196 | ||||||
Orion OYJ, Class B | 34,628 | 1,351 | ||||||
Sampo OYJ, Class A | 164,008 | 7,944 | ||||||
Stora Enso OYJ (Registered) | 194,870 | 1,613 | ||||||
UPM-Kymmene OYJ | 201,384 | 2,857 | ||||||
Wartsila OYJ Abp | 54,022 | 2,417 | ||||||
41,690 | ||||||||
France – 9.7% | ||||||||
Accor S.A. | 65,182 | 2,877 | ||||||
Aeroports de Paris | 10,835 | 1,295 | ||||||
Air Liquide S.A. | 126,964 | 15,436 | ||||||
Airbus Group N.V. | 217,507 | 13,653 | ||||||
Alcatel-Lucent * | 1,041,669 | 3,217 | ||||||
Alstom S.A. * | 78,103 | 2,667 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
France – 9.7% – continued | ||||||||
ArcelorMittal | 376,390 | $5,166 | ||||||
Arkema S.A. | 20,013 | 1,333 | ||||||
AtoS | 28,453 | 2,061 | ||||||
AXA S.A. | 667,906 | 16,449 | ||||||
BNP Paribas S.A. | 391,695 | 25,902 | ||||||
Bollore S.A. | 1,876 | 1,063 | ||||||
Bouygues S.A. | 68,721 | 2,213 | ||||||
Bureau Veritas S.A. | 84,329 | 1,859 | ||||||
Cap Gemini S.A. | 53,515 | 3,833 | ||||||
Carrefour S.A. | 232,712 | 7,170 | ||||||
Casino Guichard Perrachon S.A. | 20,462 | 2,199 | ||||||
Christian Dior S.A. | 20,622 | 3,448 | ||||||
Cie de St-Gobain | 162,896 | 7,419 | ||||||
Cie Generale des Etablissements Michelin | 68,263 | 6,419 | ||||||
CNP Assurances | 61,313 | 1,154 | ||||||
Credit Agricole S.A. | 370,948 | 5,574 | ||||||
Danone S.A. | 215,262 | 14,371 | ||||||
Dassault Systemes S.A. | 47,209 | 3,022 | ||||||
Edenred | 73,679 | 1,816 | ||||||
Electricite de France S.A. | 87,377 | 2,866 | ||||||
Essilor International S.A. | 75,451 | 8,248 | ||||||
Eurazeo S.A. | 13,262 | 954 | ||||||
Eutelsat Communications S.A. | 54,197 | 1,748 | ||||||
Fonciere Des Regions | 9,853 | 886 | ||||||
GDF Suez | 533,680 | 13,348 | ||||||
Gecina S.A. | 10,603 | 1,387 | ||||||
Groupe Eurotunnel S.A. (Registered) | 177,925 | 2,168 | ||||||
ICADE | 14,575 | 1,229 | ||||||
Iliad S.A. | 9,424 | 1,978 | ||||||
Imerys S.A. | 11,882 | 874 | ||||||
JCDecaux S.A. | 23,061 | 728 | ||||||
Kering | 27,859 | 5,607 | ||||||
Klepierre | 40,632 | 1,777 | ||||||
Lafarge S.A. | 68,913 | 4,947 | ||||||
Lagardere S.C.A. | 43,360 | 1,157 | ||||||
Legrand S.A. | 98,584 | 5,113 | ||||||
L’Oreal S.A. | 92,583 | 14,663 | ||||||
LVMH Moet Hennessy Louis Vuitton S.A. | 103,545 | 16,785 | ||||||
Natixis S.A. | 355,535 | 2,445 | ||||||
Orange S.A. | 689,616 | 10,331 | ||||||
Pernod Ricard S.A. | 77,676 | 8,779 | ||||||
Peugeot S.A. * | 151,535 | 1,937 | ||||||
Publicis Groupe S.A. | 68,044 | 4,666 | ||||||
Remy Cointreau S.A. | 8,495 | 612 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 54 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
France – 9.7% – continued | ||||||||
Renault S.A. | 70,737 | $5,106 | ||||||
Rexel S.A. | 97,204 | 1,808 | ||||||
Safran S.A. | 101,032 | 6,541 | ||||||
Sanofi | 438,002 | 49,413 | ||||||
Schneider Electric S.E. | 187,446 | 14,334 | ||||||
Schneider Electric S.E. (OTC Exchange) | 4,873 | 373 | ||||||
SCOR S.E. | 54,317 | 1,695 | ||||||
SES S.A. | 112,761 | 3,898 | ||||||
Societe BIC S.A. | 9,946 | 1,279 | ||||||
Societe Generale S.A. | 266,504 | 13,546 | ||||||
Sodexo | 34,018 | 3,320 | ||||||
Suez Environnement Co. | 101,939 | 1,717 | ||||||
Technip S.A. | 38,063 | 3,194 | ||||||
Thales S.A. | 32,817 | 1,747 | ||||||
Total S.A. | 789,820 | 51,044 | ||||||
Unibail-Rodamco S.E. | 36,111 | 9,273 | ||||||
Valeo S.A. | 28,452 | 3,156 | ||||||
Vallourec S.A. | 38,821 | 1,781 | ||||||
Veolia Environnement S.A. | 158,651 | 2,785 | ||||||
Vinci S.A. | 180,057 | 10,425 | ||||||
Vivendi S.A. * | 449,207 | 10,826 | ||||||
Wendel S.A. | 11,519 | 1,302 | ||||||
Zodiac Aerospace | 71,012 | 2,265 | ||||||
467,677 | ||||||||
Germany – 8.0% | ||||||||
adidas A.G. | 76,847 | 5,748 | ||||||
Allianz S.E. (Registered) | 168,142 | 27,240 | ||||||
Axel Springer S.E. | 14,045 | 772 | ||||||
BASF S.E. | 340,024 | 31,187 | ||||||
Bayer A.G. (Registered) | 305,555 | 42,794 | ||||||
Bayerische Motoren Werke A.G. | 122,507 | 13,153 | ||||||
Beiersdorf A.G. | 36,275 | 3,030 | ||||||
Brenntag A.G. | 55,731 | 2,736 | ||||||
Celesio A.G. | 17,445 | 581 | ||||||
Commerzbank A.G. * | 357,431 | 5,324 | ||||||
Continental A.G. | 40,224 | 7,648 | ||||||
Daimler A.G. (Registered) | 354,778 | 27,211 | ||||||
Deutsche Bank A.G. (Registered) | 510,379 | 17,902 | ||||||
Deutsche Boerse A.G. | 71,475 | 4,826 | ||||||
Deutsche Lufthansa A.G. (Registered) | 81,296 | 1,284 | ||||||
Deutsche Post A.G. (Registered) | 358,945 | 11,479 | ||||||
Deutsche Telekom A.G. (Registered) | 1,152,183 | 17,404 | ||||||
Deutsche Wohnen A.G. (Bearer) | 109,929 | 2,349 | ||||||
E.ON S.E. | 739,109 | 13,530 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Germany – 8.0% – continued | ||||||||
Fraport A.G. Frankfurt Airport Services Worldwide | 13,581 | $893 | ||||||
Fresenius Medical Care A.G. & Co. KGaA | 80,569 | 5,626 | ||||||
Fresenius S.E. & Co. KGaA | 138,977 | 6,877 | ||||||
GEA Group A.G. | 69,234 | 3,010 | ||||||
Hannover Rueck S.E. | 21,845 | 1,765 | ||||||
HeidelbergCement A.G. | 50,683 | 3,349 | ||||||
Henkel A.G. & Co. KGaA | 44,055 | 4,118 | ||||||
Hochtief A.G. | 10,273 | 706 | ||||||
Hugo Boss A.G. | 11,136 | 1,391 | ||||||
Infineon Technologies A.G. | 422,743 | 4,375 | ||||||
K+S A.G. (Registered) | 61,586 | 1,750 | ||||||
Kabel Deutschland Holding A.G. | 1,206 | 164 | ||||||
LANXESS A.G. | 32,289 | 1,785 | ||||||
Linde A.G. | 68,873 | 13,235 | ||||||
MAN S.E. | 12,473 | 1,403 | ||||||
Merck KGaA | 48,539 | 4,473 | ||||||
Metro A.G. * | 58,571 | 1,929 | ||||||
Muenchener Rueckversicherungs A.G. (Registered) | 64,461 | 12,759 | ||||||
OSRAM Licht A.G. * | 32,073 | 1,193 | ||||||
ProSiebenSat.1 Media A.G. (Registered) | 81,706 | 3,252 | ||||||
RWE A.G. | 179,866 | 7,019 | ||||||
SAP S.E. | 339,979 | 24,516 | ||||||
Siemens A.G. (Registered) | 293,252 | 34,952 | ||||||
Sky Deutschland A.G. * | 158,268 | 1,344 | ||||||
Telefonica Deutschland Holding A.G. * | 191,494 | 1,001 | ||||||
ThyssenKrupp A.G. * | 169,823 | 4,459 | ||||||
United Internet A.G. (Registered) | 46,536 | 1,979 | ||||||
Volkswagen A.G. | 10,648 | 2,209 | ||||||
387,730 | ||||||||
Hong Kong – 2.9% | ||||||||
AIA Group Ltd. | 4,437,886 | 22,904 | ||||||
ASM Pacific Technology Ltd. | 84,000 | 832 | ||||||
Bank of East Asia Ltd. | 490,039 | 1,986 | ||||||
BOC Hong Kong Holdings Ltd. | 1,358,608 | 4,335 | ||||||
Cathay Pacific Airways Ltd. | 419,506 | 773 | ||||||
Cheung Kong Holdings Ltd. | 515,729 | 8,464 | ||||||
Cheung Kong Infrastructure Holdings Ltd. | 219,353 | 1,540 | ||||||
CLP Holdings Ltd. | 714,014 | 5,726 | ||||||
First Pacific Co. Ltd. | 829,539 | 863 | ||||||
Galaxy Entertainment Group Ltd. | 870,148 | 5,032 | ||||||
Hang Lung Properties Ltd. | 837,501 | 2,379 | ||||||
Hang Seng Bank Ltd. | 277,079 | 4,451 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 55 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
INTERNATIONAL EQUITY INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Hong Kong – 2.9% – continued | ||||||||
Henderson Land Development Co. Ltd. | 389,188 | $2,522 | ||||||
HKT Trust and HKT Ltd. | 922,220 | 1,114 | ||||||
Hong Kong & China Gas Co. Ltd. | 2,312,036 | 5,008 | ||||||
Hong Kong Exchanges and Clearing Ltd. | 411,417 | 8,865 | ||||||
Hutchison Whampoa Ltd. | 787,698 | 9,520 | ||||||
Hysan Development Co. Ltd. | 236,501 | 1,094 | ||||||
Kerry Properties Ltd. | 230,703 | 776 | ||||||
Li & Fung Ltd. | 2,187,218 | 2,481 | ||||||
Link REIT (The) | 861,271 | 4,964 | ||||||
MGM China Holdings Ltd. | 331,716 | 955 | ||||||
MTR Corp. Ltd. | 552,269 | 2,163 | ||||||
New World Development Co. Ltd. | 1,940,543 | 2,262 | ||||||
Noble Group Ltd. | 1,517,944 | 1,543 | ||||||
NWS Holdings Ltd. | 516,097 | 917 | ||||||
PCCW Ltd. | 1,414,926 | 890 | ||||||
Power Assets Holdings Ltd. | 502,817 | 4,447 | ||||||
Sands China Ltd. | 907,899 | 4,716 | ||||||
Shangri-La Asia Ltd. | 592,574 | 877 | ||||||
Sino Land Co. Ltd. | 1,146,228 | 1,774 | ||||||
SJM Holdings Ltd. | 707,572 | 1,351 | ||||||
Sun Hung Kai Properties Ltd. | 608,258 | 8,606 | ||||||
Swire Pacific Ltd., Class A | 231,551 | 2,983 | ||||||
Swire Properties Ltd. | 406,987 | 1,270 | ||||||
Techtronic Industries Co. | 493,333 | 1,421 | ||||||
Wharf Holdings (The) Ltd. | 558,766 | 3,974 | ||||||
Wheelock & Co. Ltd. | 365,021 | 1,739 | ||||||
Wynn Macau Ltd. | 550,546 | 1,753 | ||||||
Yangzijiang Shipbuilding Holdings Ltd. | 922,566 | 852 | ||||||
Yue Yuen Industrial Holdings Ltd. | 259,710 | 787 | ||||||
140,909 | ||||||||
Ireland – 0.3% | ||||||||
Bank of Ireland * | 10,062,928 | 3,942 | ||||||
CRH PLC | 268,858 | 6,110 | ||||||
CRH PLC (OTC Exchange) | 1,049 | 24 | ||||||
Irish Bank Resolution Corp. Ltd. (1)* | 99,788 | – | ||||||
Kerry Group PLC, Class A | 58,597 | 4,132 | ||||||
Ryanair Holdings PLC * | 3,150 | 30 | ||||||
Ryanair Holdings PLC ADR * | 5,370 | 303 | ||||||
14,541 | ||||||||
Israel – 0.5% | ||||||||
Bank Hapoalim B.M. | 404,307 | 2,279 | ||||||
Bank Leumi Le-Israel B.M. * | 512,197 | 2,075 | ||||||
Bezeq The Israeli Telecommunication Corp. Ltd. | 663,592 | 1,146 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Israel – 0.5% – continued | ||||||||
Delek Group Ltd. | 1,608 | $609 | ||||||
Israel (The) Corp. Ltd. * | 920 | 516 | ||||||
Israel Chemicals Ltd. | 153,857 | 1,107 | ||||||
Israel Chemicals Ltd. ADR | 7,588 | 54 | ||||||
Mizrahi Tefahot Bank Ltd. * | 47,002 | 562 | ||||||
NICE Systems Ltd. | 20,239 | 824 | ||||||
Teva Pharmaceutical Industries Ltd. | 312,168 | 16,790 | ||||||
Teva Pharmaceutical Industries Ltd. ADR | 4,126 | 222 | ||||||
26,184 | ||||||||
Italy – 2.4% | ||||||||
Assicurazioni Generali S.p.A. | 433,556 | 9,100 | ||||||
Atlantia S.p.A. | 149,672 | 3,683 | ||||||
Banca Monte dei Paschi di Siena S.p.A. * | 1,544,699 | 2,025 | ||||||
Banco Popolare S.C. * | 144,323 | 2,096 | ||||||
Enel Green Power S.p.A. | 637,869 | 1,632 | ||||||
Enel S.p.A. | 2,438,978 | 12,868 | ||||||
Eni S.p.A. | 936,350 | 22,229 | ||||||
Exor S.p.A. | 34,600 | 1,337 | ||||||
Fiat S.p.A. * | 318,440 | 3,071 | ||||||
Finmeccanica S.p.A. * | 143,761 | 1,398 | ||||||
Intesa Sanpaolo S.p.A. | 4,308,502 | 13,032 | ||||||
Intesa Sanpaolo S.p.A. (RSP) | 320,868 | 858 | ||||||
Luxottica Group S.p.A. | 62,475 | 3,246 | ||||||
Mediobanca S.p.A. * | 212,820 | 1,815 | ||||||
Pirelli & C. S.p.A. | 86,264 | 1,191 | ||||||
Prysmian S.p.A. | 73,156 | 1,350 | ||||||
Saipem S.p.A. * | 102,207 | 2,164 | ||||||
Snam S.p.A. | 734,708 | 4,050 | ||||||
Telecom Italia S.p.A. * | 3,848,482 | 4,397 | ||||||
Telecom Italia S.p.A. (RSP) | 2,437,750 | 2,160 | ||||||
Tenaris S.A. | 174,971 | 3,988 | ||||||
Terna Rete Elettrica Nazionale S.p.A. | 573,297 | 2,873 | ||||||
UniCredit S.p.A. | 1,636,136 | 12,813 | ||||||
Unione di Banche Italiane S.C.p.A. | 309,356 | 2,578 | ||||||
UnipolSai S.p.A. | 315,242 | 886 | ||||||
116,840 | ||||||||
Japan – 20.7% | ||||||||
ABC-Mart, Inc. | 9,300 | 475 | ||||||
Acom Co. Ltd. * | 141,300 | 471 | ||||||
Advantest Corp. | 55,300 | 714 | ||||||
Aeon Co. Ltd. | 236,700 | 2,361 | ||||||
AEON Financial Service Co. Ltd. | 39,800 | 855 | ||||||
Aeon Mall Co. Ltd. | 40,680 | 778 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 56 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Japan – 20.7% – continued | ||||||||
Air Water, Inc. | 51,569 | $768 | ||||||
Aisin Seiki Co. Ltd. | 71,500 | 2,573 | ||||||
Ajinomoto Co., Inc. | 215,000 | 3,581 | ||||||
Alfresa Holdings Corp. | 60,800 | 877 | ||||||
Amada Co. Ltd. | 125,000 | 1,195 | ||||||
ANA Holdings, Inc. | 409,000 | 952 | ||||||
Aozora Bank Ltd. | 424,000 | 1,432 | ||||||
Asahi Glass Co. Ltd. | 387,000 | 2,100 | ||||||
Asahi Group Holdings Ltd. | 141,600 | 4,099 | ||||||
Asahi Kasei Corp. | 469,000 | 3,811 | ||||||
Asics Corp. | 56,200 | 1,267 | ||||||
Astellas Pharma, Inc. | 797,600 | 11,887 | ||||||
Bandai Namco Holdings, Inc. | 63,900 | 1,637 | ||||||
Bank of Kyoto (The) Ltd. | 118,971 | 989 | ||||||
Bank of Yokohama (The) Ltd. | 439,000 | 2,417 | ||||||
Benesse Holdings, Inc. | 22,800 | 749 | ||||||
Bridgestone Corp. | 242,400 | 8,024 | ||||||
Brother Industries Ltd. | 83,100 | 1,539 | ||||||
Calbee, Inc. | 24,900 | 816 | ||||||
Canon, Inc. | 420,300 | 13,669 | ||||||
Casio Computer Co. Ltd. | 77,200 | 1,288 | ||||||
Central Japan Railway Co. | 52,600 | 7,088 | ||||||
Chiba Bank (The) Ltd. | 264,000 | 1,838 | ||||||
Chiyoda Corp. | 54,746 | 605 | ||||||
Chubu Electric Power Co., Inc. * | 231,700 | 2,661 | ||||||
Chugai Pharmaceutical Co. Ltd. | 83,655 | 2,418 | ||||||
Chugoku Bank (The) Ltd. | 59,000 | 867 | ||||||
Chugoku Electric Power (The) Co., Inc. | 105,800 | 1,359 | ||||||
Citizen Holdings Co. Ltd. | 90,700 | 595 | ||||||
Credit Saison Co. Ltd. | 54,200 | 1,046 | ||||||
Dai Nippon Printing Co. Ltd. | 216,000 | 2,167 | ||||||
Daicel Corp. | 94,000 | 1,011 | ||||||
Daido Steel Co. Ltd. | 95,000 | 379 | ||||||
Daihatsu Motor Co. Ltd. | 69,700 | 1,103 | ||||||
Dai-ichi Life Insurance (The) Co. Ltd. | 390,000 | 5,794 | ||||||
Daiichi Sankyo Co. Ltd. | 234,000 | 3,674 | ||||||
Daikin Industries Ltd. | 87,300 | 5,418 | ||||||
Daito Trust Construction Co. Ltd. | 26,100 | 3,085 | ||||||
Daiwa House Industry Co. Ltd. | 218,200 | 3,919 | ||||||
Daiwa Securities Group, Inc. | 613,000 | 4,861 | ||||||
Dena Co. Ltd. | 35,600 | 453 | ||||||
Denso Corp. | 181,200 | 8,361 | ||||||
Dentsu, Inc. | 80,318 | 3,061 | ||||||
Don Quijote Holdings Co. Ltd. | 20,300 | 1,165 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Japan – 20.7% – continued | ||||||||
East Japan Railway Co. | 124,512 | $9,338 | ||||||
Eisai Co. Ltd. | 93,000 | 3,763 | ||||||
Electric Power Development Co. Ltd. | 40,900 | 1,334 | ||||||
FamilyMart Co. Ltd. | 20,700 | 791 | ||||||
FANUC Corp. | 70,800 | 12,785 | ||||||
Fast Retailing Co. Ltd. | 19,400 | 6,501 | ||||||
Fuji Electric Co. Ltd. | 198,000 | 960 | ||||||
Fuji Heavy Industries Ltd. | 219,800 | 7,276 | ||||||
FUJIFILM Holdings Corp. | 170,700 | 5,226 | ||||||
Fujitsu Ltd. | 688,000 | 4,239 | ||||||
Fukuoka Financial Group, Inc. | 278,000 | 1,327 | ||||||
Gree, Inc. | 35,781 | 244 | ||||||
GungHo Online Entertainment, Inc. | 139,100 | 664 | ||||||
Gunma Bank (The) Ltd. | 130,000 | 750 | ||||||
Hachijuni Bank (The) Ltd. | 144,395 | 868 | ||||||
Hakuhodo DY Holdings, Inc. | 80,100 | 811 | ||||||
Hamamatsu Photonics K.K. | 26,185 | 1,247 | ||||||
Hankyu Hanshin Holdings, Inc. | 427,000 | 2,483 | ||||||
Hikari Tsushin, Inc. | 5,800 | 413 | ||||||
Hino Motors Ltd. | 89,900 | 1,259 | ||||||
Hirose Electric Co. Ltd. | 10,600 | 1,310 | ||||||
Hiroshima Bank (The) Ltd. | 172,000 | 844 | ||||||
Hisamitsu Pharmaceutical Co., Inc. | 20,700 | 744 | ||||||
Hitachi Chemical Co. Ltd. | 36,100 | 636 | ||||||
Hitachi Construction Machinery Co. Ltd. | 36,900 | 744 | ||||||
Hitachi High-Technologies Corp. | 21,800 | 627 | ||||||
Hitachi Ltd. | 1,788,000 | 13,608 | ||||||
Hitachi Metals Ltd. | 74,000 | 1,331 | ||||||
Hokuhoku Financial Group, Inc. | 418,000 | 818 | ||||||
Hokuriku Electric Power Co. | 57,300 | 753 | ||||||
Honda Motor Co. Ltd. | 600,700 | 20,835 | ||||||
Hoya Corp. | 161,600 | 5,431 | ||||||
Hulic Co. Ltd. | 82,100 | 869 | ||||||
Ibiden Co. Ltd. | 41,700 | 813 | ||||||
Idemitsu Kosan Co. Ltd. | 29,900 | 635 | ||||||
IHI Corp. | 514,000 | 2,665 | ||||||
Iida Group Holdings Co. Ltd. | 55,664 | 682 | ||||||
Inpex Corp. | 327,700 | 4,639 | ||||||
Isetan Mitsukoshi Holdings Ltd. | 119,460 | 1,557 | ||||||
Isuzu Motors Ltd. | 225,700 | 3,193 | ||||||
ITOCHU Corp. | 549,500 | 6,720 | ||||||
Itochu Techno-Solutions Corp. | 8,100 | 341 | ||||||
Iyo Bank (The) Ltd. | 83,400 | 845 | ||||||
J Front Retailing Co. Ltd. | 87,500 | 1,146 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 57 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
INTERNATIONAL EQUITY INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Japan – 20.7% – continued | ||||||||
Japan Airlines Co. Ltd. | 42,000 | $1,149 | ||||||
Japan Display, Inc. * | 124,500 | 603 | ||||||
Japan Exchange Group, Inc. | 99,300 | 2,360 | ||||||
Japan Prime Realty Investment Corp. | 274 | 987 | ||||||
Japan Real Estate Investment Corp. | 453 | 2,330 | ||||||
Japan Retail Fund Investment Corp. | 916 | 1,844 | ||||||
Japan Tobacco, Inc. | 404,800 | 13,176 | ||||||
JFE Holdings, Inc. | 181,200 | 3,619 | ||||||
JGC Corp. | 75,000 | 2,049 | ||||||
Joyo Bank (The) Ltd. | 247,000 | 1,214 | ||||||
JSR Corp. | 62,900 | 1,098 | ||||||
JTEKT Corp. | 73,500 | 1,231 | ||||||
JX Holdings, Inc. | 827,097 | 3,814 | ||||||
Kajima Corp. | 294,000 | 1,408 | ||||||
Kakaku.com, Inc. | 51,800 | 736 | ||||||
Kamigumi Co. Ltd. | 80,000 | 759 | ||||||
Kaneka Corp. | 94,000 | 526 | ||||||
Kansai Electric Power (The) Co., Inc. * | 268,200 | 2,541 | ||||||
Kansai Paint Co. Ltd. | 84,000 | 1,255 | ||||||
Kao Corp. | 192,800 | 7,520 | ||||||
Kawasaki Heavy Industries Ltd. | 542,000 | 2,167 | ||||||
KDDI Corp. | 215,300 | 12,955 | ||||||
Keikyu Corp. | 172,000 | 1,437 | ||||||
Keio Corp. | 202,000 | 1,495 | ||||||
Keisei Electric Railway Co. Ltd. | 96,000 | 962 | ||||||
Keyence Corp. | 16,639 | 7,238 | ||||||
Kikkoman Corp. | 51,000 | 1,085 | ||||||
Kintetsu Corp. | 643,000 | 2,164 | ||||||
Kirin Holdings Co. Ltd. | 301,500 | 4,007 | ||||||
Kobe Steel Ltd. | 1,164,000 | 1,891 | ||||||
Koito Manufacturing Co. Ltd. | 33,114 | 900 | ||||||
Komatsu Ltd. | 349,000 | 8,078 | ||||||
Konami Corp. | 34,700 | 724 | ||||||
Konica Minolta, Inc. | 170,700 | 1,849 | ||||||
Kubota Corp. | 420,000 | 6,620 | ||||||
Kuraray Co. Ltd. | 120,900 | 1,419 | ||||||
Kurita Water Industries Ltd. | 35,700 | 796 | ||||||
Kyocera Corp. | 120,100 | 5,603 | ||||||
Kyowa Hakko Kirin Co. Ltd. | 83,000 | 1,019 | ||||||
Kyushu Electric Power Co., Inc. * | 151,500 | 1,634 | ||||||
Lawson, Inc. | 23,500 | 1,645 | ||||||
LIXIL Group Corp. | 101,200 | 2,164 | ||||||
M3, Inc. | 67,000 | 1,076 | ||||||
Mabuchi Motor Co. Ltd. | 8,600 | 751 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Japan – 20.7% – continued | ||||||||
Makita Corp. | 44,600 | $2,524 | ||||||
Marubeni Corp. | 605,900 | 4,151 | ||||||
Marui Group Co. Ltd. | 81,700 | 673 | ||||||
Maruichi Steel Tube Ltd. | 17,300 | 425 | ||||||
Mazda Motor Corp. | 200,000 | 5,020 | ||||||
McDonald’s Holdings Co. Japan Ltd. | 22,900 | 566 | ||||||
Medipal Holdings Corp. | 47,000 | 572 | ||||||
MEIJI Holdings Co. Ltd. | 22,063 | 1,748 | ||||||
Miraca Holdings, Inc. | 20,841 | 862 | ||||||
Mitsubishi Chemical Holdings Corp. | 519,700 | 2,559 | ||||||
Mitsubishi Corp. | 521,200 | 10,682 | ||||||
Mitsubishi Electric Corp. | 719,000 | 9,586 | ||||||
Mitsubishi Estate Co. Ltd. | 463,000 | 10,431 | ||||||
Mitsubishi Gas Chemical Co., Inc. | 136,000 | 867 | ||||||
Mitsubishi Heavy Industries Ltd. | 1,110,000 | 7,148 | ||||||
Mitsubishi Logistics Corp. | 55,000 | 790 | ||||||
Mitsubishi Materials Corp. | 399,000 | 1,296 | ||||||
Mitsubishi Motors Corp. | 254,000 | 3,085 | ||||||
Mitsubishi Tanabe Pharma Corp. | 87,900 | 1,290 | ||||||
Mitsubishi UFJ Financial Group, Inc. | 4,691,695 | 26,558 | ||||||
Mitsubishi UFJ Lease & Finance Co. Ltd. | 169,600 | 887 | ||||||
Mitsui & Co. Ltd. | 633,200 | 9,992 | ||||||
Mitsui Chemicals, Inc. * | 297,000 | 827 | ||||||
Mitsui Fudosan Co. Ltd. | 344,000 | 10,549 | ||||||
Mitsui OSK Lines Ltd. | 389,000 | 1,242 | ||||||
Mizuho Financial Group, Inc. | 8,539,389 | 15,262 | ||||||
MS&AD Insurance Group Holdings, Inc. | 188,243 | 4,112 | ||||||
Murata Manufacturing Co. Ltd. | 74,297 | 8,455 | ||||||
Nabtesco Corp. | 39,799 | 955 | ||||||
Nagoya Railroad Co. Ltd. | 299,000 | 1,200 | ||||||
NEC Corp. | 1,003,000 | 3,470 | ||||||
Nexon Co. Ltd. | 45,700 | 377 | ||||||
NGK Insulators Ltd. | 102,000 | 2,435 | ||||||
NGK Spark Plug Co. Ltd. | 64,000 | 1,887 | ||||||
NH Foods Ltd. | 73,000 | 1,552 | ||||||
NHK Spring Co. Ltd. | 54,500 | 535 | ||||||
Nidec Corp. | 80,500 | 5,450 | ||||||
Nikon Corp. | 137,100 | 1,983 | ||||||
Nintendo Co. Ltd. | 39,300 | 4,277 | ||||||
Nippon Building Fund, Inc. | 523 | 2,755 | ||||||
Nippon Electric Glass Co. Ltd. | 137,500 | 670 | ||||||
Nippon Express Co. Ltd. | 304,000 | 1,275 | ||||||
Nippon Paint Co. Ltd. | 71,000 | 1,600 | ||||||
Nippon Prologis REIT, Inc. | 553 | 1,284 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 58 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Japan – 20.7% – continued | ||||||||
Nippon Steel & Sumitomo Metal Corp. | 2,841,615 | $7,382 | ||||||
Nippon Telegraph & Telephone Corp. | 138,878 | 8,643 | ||||||
Nippon Yusen K.K. | 624,000 | 1,647 | ||||||
Nissan Motor Co. Ltd. | 923,800 | 9,013 | ||||||
Nisshin Seifun Group, Inc. | 79,805 | 787 | ||||||
Nissin Foods Holdings Co. Ltd. | 21,700 | 1,127 | ||||||
Nitori Holdings Co. Ltd. | 24,600 | 1,524 | ||||||
Nitto Denko Corp. | 56,400 | 3,096 | ||||||
NOK Corp. | 43,500 | 999 | ||||||
Nomura Holdings, Inc. | 1,353,500 | 8,032 | ||||||
Nomura Real Estate Holdings, Inc. | 42,500 | 731 | ||||||
Nomura Research Institute Ltd. | 40,700 | 1,318 | ||||||
NSK Ltd. | 185,000 | 2,637 | ||||||
NTT Data Corp. | 44,600 | 1,600 | ||||||
NTT DOCOMO, Inc. | 565,000 | 9,436 | ||||||
NTT Urban Development Corp. | 40,900 | 431 | ||||||
Obayashi Corp. | 261,000 | 1,789 | ||||||
Odakyu Electric Railway Co. Ltd. | 235,000 | 2,150 | ||||||
Oji Holdings Corp. | 286,000 | 1,083 | ||||||
Olympus Corp. * | 92,800 | 3,335 | ||||||
Omron Corp. | 79,100 | 3,597 | ||||||
Ono Pharmaceutical Co. Ltd. | 31,200 | 2,775 | ||||||
Oracle Corp. Japan | 13,200 | 515 | ||||||
Oriental Land Co. Ltd. | 18,500 | 3,501 | ||||||
ORIX Corp. | 492,700 | 6,804 | ||||||
Osaka Gas Co. Ltd. | 730,000 | 2,927 | ||||||
Otsuka Corp. | 16,800 | 668 | ||||||
Otsuka Holdings Co. Ltd. | 143,615 | 4,953 | ||||||
Panasonic Corp. | 817,700 | 9,735 | ||||||
Park24 Co. Ltd. | 37,600 | 600 | ||||||
Rakuten, Inc. | 294,700 | 3,403 | ||||||
Resona Holdings, Inc. | 824,910 | 4,656 | ||||||
Ricoh Co. Ltd. | 270,000 | 2,903 | ||||||
Rinnai Corp. | 14,400 | 1,193 | ||||||
Rohm Co. Ltd. | 36,400 | 2,293 | ||||||
Sankyo Co. Ltd. | 16,800 | 602 | ||||||
Sanrio Co. Ltd. | 16,597 | 480 | ||||||
Santen Pharmaceutical Co. Ltd. | 26,800 | 1,501 | ||||||
SBI Holdings, Inc. | 74,560 | 836 | ||||||
Secom Co. Ltd. | 77,500 | 4,621 | ||||||
Sega Sammy Holdings, Inc. | 68,500 | 1,103 | ||||||
Seibu Holdings, Inc. | 42,300 | 843 | ||||||
Seiko Epson Corp. | 48,900 | 2,352 | ||||||
Sekisui Chemical Co. Ltd. | 162,000 | 1,862 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Japan – 20.7% – continued | ||||||||
Sekisui House Ltd. | 206,500 | $2,439 | ||||||
Seven & I Holdings Co. Ltd. | 278,800 | 10,824 | ||||||
Seven Bank Ltd. | 249,300 | 1,017 | ||||||
Sharp Corp. * | 534,000 | 1,521 | ||||||
Shikoku Electric Power Co., Inc. * | 79,600 | 1,018 | ||||||
Shimadzu Corp. | 83,000 | 719 | ||||||
Shimamura Co. Ltd. | 7,600 | 699 | ||||||
Shimano, Inc. | 29,500 | 3,590 | ||||||
Shimizu Corp. | 217,000 | 1,713 | ||||||
Shin-Etsu Chemical Co. Ltd. | 152,100 | 9,950 | ||||||
Shinsei Bank Ltd. | 598,000 | 1,283 | ||||||
Shionogi & Co. Ltd. | 111,700 | 2,565 | ||||||
Shiseido Co. Ltd. | 141,900 | 2,344 | ||||||
Shizuoka Bank (The) Ltd. | 203,000 | 2,092 | ||||||
Showa Shell Sekiyu K.K. | 79,800 | 759 | ||||||
SMC Corp. | 20,400 | 5,634 | ||||||
SoftBank Corp. | 355,000 | 24,920 | ||||||
Sompo Japan Nipponkoa Holdings, Inc. | 125,745 | 3,055 | ||||||
Sony Corp. | 380,900 | 6,864 | ||||||
Sony Financial Holdings, Inc. | 71,500 | 1,158 | ||||||
Stanley Electric Co. Ltd. | 52,400 | 1,134 | ||||||
Sumitomo Chemical Co. Ltd. | 569,000 | 2,030 | ||||||
Sumitomo Corp. | 412,800 | 4,559 | ||||||
Sumitomo Dainippon Pharma Co. Ltd. | 53,900 | 687 | ||||||
Sumitomo Electric Industries Ltd. | 277,100 | 4,099 | ||||||
Sumitomo Heavy Industries Ltd. | 196,000 | 1,104 | ||||||
Sumitomo Metal Mining Co. Ltd. | 188,000 | 2,650 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 470,742 | 19,210 | ||||||
Sumitomo Mitsui Trust Holdings, Inc. | 1,236,190 | 5,151 | ||||||
Sumitomo Realty & Development Co. Ltd. | 131,000 | 4,667 | ||||||
Sumitomo Rubber Industries Ltd. | 71,100 | 1,010 | ||||||
Suntory Beverage & Food Ltd. | 49,500 | 1,757 | ||||||
Suruga Bank Ltd. | 72,000 | 1,436 | ||||||
Suzuken Co. Ltd. | 24,397 | 703 | ||||||
Suzuki Motor Corp. | 135,200 | 4,486 | ||||||
Sysmex Corp. | 57,898 | 2,328 | ||||||
T&D Holdings, Inc. | 206,800 | 2,659 | ||||||
Taiheiyo Cement Corp. | 458,000 | 1,721 | ||||||
Taisei Corp. | 390,000 | 2,203 | ||||||
Taisho Pharmaceutical Holdings Co. Ltd. | 10,900 | 747 | ||||||
Taiyo Nippon Sanso Corp. | 82,000 | 723 | ||||||
Takashimaya Co. Ltd. | 109,000 | 912 | ||||||
Takeda Pharmaceutical Co. Ltd. | 290,500 | 12,636 | ||||||
TDK Corp. | 47,100 | 2,632 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 59 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
INTERNATIONAL EQUITY INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Japan – 20.7% – continued | ||||||||
Teijin Ltd. | 389,000 | $940 | ||||||
Terumo Corp. | 113,700 | 2,728 | ||||||
THK Co. Ltd. | 40,300 | 1,004 | ||||||
Tobu Railway Co. Ltd. | 383,000 | 1,929 | ||||||
Toho Co. Ltd. | 46,500 | 1,052 | ||||||
Toho Gas Co. Ltd. | 154,000 | 869 | ||||||
Tohoku Electric Power Co., Inc. | 181,500 | 2,064 | ||||||
Tokio Marine Holdings, Inc. | 252,800 | 7,850 | ||||||
Tokyo Electric Power Co., Inc. * | 512,000 | 1,794 | ||||||
Tokyo Electron Ltd. | 63,100 | 4,101 | ||||||
Tokyo Gas Co. Ltd. | 891,000 | 5,012 | ||||||
Tokyo Tatemono Co. Ltd. | 145,000 | 1,174 | ||||||
Tokyu Corp. | 429,000 | 2,814 | ||||||
Tokyu Fudosan Holdings Corp. | 176,400 | 1,211 | ||||||
TonenGeneral Sekiyu K.K. | 98,000 | 857 | ||||||
Toppan Printing Co. Ltd. | 199,000 | 1,431 | ||||||
Toray Industries, Inc. | 542,000 | 3,585 | ||||||
Toshiba Corp. | 1,476,000 | 6,845 | ||||||
TOTO Ltd. | 101,000 | 1,112 | ||||||
Toyo Seikan Group Holdings Ltd. | 59,300 | 736 | ||||||
Toyo Suisan Kaisha Ltd. | 36,000 | 1,195 | ||||||
Toyoda Gosei Co. Ltd. | 22,400 | 437 | ||||||
Toyota Industries Corp. | 61,400 | 2,970 | ||||||
Toyota Motor Corp. | 1,017,700 | 59,807 | ||||||
Toyota Tsusho Corp. | 80,600 | 1,966 | ||||||
Trend Micro, Inc. | 38,700 | 1,310 | ||||||
Unicharm Corp. | 144,300 | 3,284 | ||||||
United Urban Investment Corp. | 873 | 1,340 | ||||||
USS Co. Ltd. | 80,500 | 1,236 | ||||||
West Japan Railway Co. | 61,100 | 2,730 | ||||||
Yahoo Japan Corp. | 506,800 | 1,929 | ||||||
Yakult Honsha Co. Ltd. | 31,700 | 1,666 | ||||||
Yamada Denki Co. Ltd. | 298,790 | 872 | ||||||
Yamaguchi Financial Group, Inc. | 72,000 | 681 | ||||||
Yamaha Corp. | 57,700 | 755 | ||||||
Yamaha Motor Co. Ltd. | 93,400 | 1,829 | ||||||
Yamato Holdings Co. Ltd. | 136,100 | 2,535 | ||||||
Yamato Kogyo Co. Ltd. | 13,400 | 448 | ||||||
Yamazaki Baking Co. Ltd. | 50,905 | 657 | ||||||
Yaskawa Electric Corp. | 91,000 | 1,234 | ||||||
Yokogawa Electric Corp. | 76,200 | 1,005 | ||||||
Yokohama Rubber (The) Co. Ltd. | 90,000 | 780 | ||||||
998,744 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Netherlands – 2.2% | ||||||||
Aegon N.V. | 677,817 | $5,580 | ||||||
Akzo Nobel N.V. | 89,338 | 6,086 | ||||||
Altice S.A. * | 31,022 | 1,641 | ||||||
ASML Holding N.V. | 132,300 | 13,131 | ||||||
CNH Industrial N.V. | 358,755 | 2,853 | ||||||
Corio N.V. | 27,202 | 1,332 | ||||||
Delta Lloyd N.V. | 78,794 | 1,892 | ||||||
FugroN.V. – CVA | 25,985 | 786 | ||||||
Gemalto N.V. | 26,706 | 2,447 | ||||||
Gemalto N.V. (Paris Exchange) | 2,196 | 202 | ||||||
Heineken Holding N.V. | 37,842 | 2,499 | ||||||
Heineken N.V. | 85,761 | 6,405 | ||||||
ING Groep N.V. – CVA * | 1,422,774 | 20,237 | ||||||
Koninklijke Ahold N.V. | 352,814 | 5,705 | ||||||
Koninklijke Boskalis Westminster N.V. | 33,395 | 1,868 | ||||||
Koninklijke DSM N.V. | 62,490 | 3,850 | ||||||
Koninklijke KPN N.V. * | 1,210,179 | 3,863 | ||||||
Koninklijke Philips N.V. | 357,739 | 11,389 | ||||||
Koninklijke Vopak N.V. | 24,594 | 1,324 | ||||||
OCI N.V. * | 29,484 | 909 | ||||||
QIAGEN N.V. * | 84,678 | 1,927 | ||||||
Randstad Holding N.V. | 47,346 | 2,199 | ||||||
TNT Express N.V. | 154,676 | 973 | ||||||
Wolters Kluwer N.V. | 108,711 | 2,896 | ||||||
Ziggo N.V. | 54,869 | 2,562 | ||||||
104,556 | ||||||||
New Zealand – 0.1% | ||||||||
Auckland International Airport Ltd. | 328,981 | 988 | ||||||
Contact Energy Ltd. | 129,036 | 602 | ||||||
Fletcher Building Ltd. | 253,430 | 1,731 | ||||||
Ryman Healthcare Ltd. | 138,780 | 846 | ||||||
Spark New Zealand Ltd. | 708,109 | 1,642 | ||||||
Xero Ltd. * | 22,017 | 372 | ||||||
6,181 | ||||||||
Norway – 0.8% | ||||||||
Aker Solutions ASA (2)(3)* | 63,145 | 629 | ||||||
DNB ASA | 363,023 | 6,789 | ||||||
Gjensidige Forsikring ASA | 70,289 | 1,486 | ||||||
Norsk Hydro ASA | 490,454 | 2,733 | ||||||
Orkla ASA | 297,783 | 2,695 | ||||||
Seadrill Ltd. | 138,385 | 3,694 | ||||||
Statoil ASA | 416,036 | 11,319 | ||||||
Telenor ASA | 277,788 | 6,096 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 60 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Norway – 0.8% – continued | ||||||||
Yara International ASA | 68,318 | $3,425 | ||||||
38,866 | ||||||||
Portugal – 0.2% | ||||||||
Banco Comercial Portugues S.A. (Registered) * | 12,398,065 | 1,599 | ||||||
Banco Espirito Santo S.A. (Registered) * | 882,815 | 11 | ||||||
EDP – Energias de Portugal S.A. | 840,293 | 3,656 | ||||||
Galp Energia SGPS S.A. | 146,237 | 2,372 | ||||||
Jeronimo Martins SGPS S.A. | 90,037 | 988 | ||||||
8,626 | ||||||||
Singapore – 1.4% | ||||||||
Ascendas Real Estate Investment Trust | 725,879 | 1,280 | ||||||
CapitaCommercial Trust | 723,000 | 904 | ||||||
CapitaLand Ltd. | 968,750 | 2,427 | ||||||
CapitaMall Trust | 865,800 | 1,296 | ||||||
City Developments Ltd. | 148,000 | 1,114 | ||||||
ComfortDelGro Corp. Ltd. | 840,000 | 1,578 | ||||||
DBS Group Holdings Ltd. | 641,626 | 9,251 | ||||||
Genting Singapore PLC | 2,318,380 | 2,069 | ||||||
Global Logistic Properties Ltd. | 1,091,939 | 2,317 | ||||||
Golden Agri-Resources Ltd. | 2,516,892 | 1,015 | ||||||
Hutchison Port Holdings Trust, Class U | 2,009,000 | 1,402 | ||||||
Jardine Cycle & Carriage Ltd. | 42,446 | 1,428 | ||||||
Keppel Corp. Ltd. | 558,550 | 4,592 | ||||||
Keppel Land Ltd. | 258,473 | 708 | ||||||
Olam International Ltd. | 166,000 | 306 | ||||||
Oversea-Chinese Banking Corp. Ltd. | 1,060,268 | 8,085 | ||||||
Sembcorp Industries Ltd. | 350,644 | 1,424 | ||||||
Sembcorp Marine Ltd. | 300,800 | 880 | ||||||
Singapore Airlines Ltd. | 196,734 | 1,516 | ||||||
Singapore Exchange Ltd. | 287,000 | 1,623 | ||||||
Singapore Press Holdings Ltd. | 569,295 | 1,874 | ||||||
Singapore Technologies Engineering Ltd. | 552,000 | 1,577 | ||||||
Singapore Telecommunications Ltd. | 2,948,925 | 8,764 | ||||||
StarHub Ltd. | 223,000 | 719 | ||||||
United Overseas Bank Ltd. | 474,035 | 8,306 | ||||||
UOL Group Ltd. | 165,907 | 858 | ||||||
Wilmar International Ltd. | 747,000 | 1,807 | ||||||
69,120 | ||||||||
South Africa – 0.0% | ||||||||
Investec PLC | 198,347 | 1,664 | ||||||
Spain – 3.5% | ||||||||
Abertis Infraestructuras S.A. | 152,538 | 3,002 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Spain – 3.5% – continued | ||||||||
ACS Actividades de Construccion y Servicios S.A. | 64,512 | $2,462 | ||||||
Amadeus IT Holding S.A., Class A | 141,749 | 5,280 | ||||||
Banco Bilbao Vizcaya Argentaria S.A. | 2,166,367 | 25,948 | ||||||
Banco de Sabadell S.A. | 1,230,739 | 3,612 | ||||||
Banco Popular Espanol S.A. | 677,936 | 4,125 | ||||||
Banco Santander S.A. | 4,440,825 | 42,484 | ||||||
Bankia S.A. * | 1,639,477 | 3,037 | ||||||
CaixaBank S.A. | 693,378 | 4,187 | ||||||
Distribuidora Internacional de Alimentacion S.A. | 216,777 | 1,546 | ||||||
Enagas S.A. | 77,035 | 2,479 | ||||||
Ferrovial S.A. | 148,662 | 2,872 | ||||||
Gas Natural SDG S.A. | 126,454 | 3,713 | ||||||
Grifols S.A. | 48,954 | 1,991 | ||||||
Grifols S.A., Class B | 4,066 | 144 | ||||||
Iberdrola S.A. | 1,887,475 | 13,484 | ||||||
Inditex S.A. | 405,260 | 11,164 | ||||||
Mapfre S.A. | 339,532 | 1,199 | ||||||
Red Electrica Corp. S.A. | 40,420 | 3,488 | ||||||
Repsol S.A. | 376,543 | 8,911 | ||||||
Telefonica S.A. | 1,509,733 | 23,328 | ||||||
Zardoya Otis S.A. | 71,365 | 883 | ||||||
169,339 | ||||||||
Sweden – 3.0% | ||||||||
Alfa Laval AB | 113,870 | 2,430 | ||||||
Assa Abloy AB, Class B | 122,751 | 6,295 | ||||||
Atlas Copco AB, Class A | 245,871 | 7,028 | ||||||
Atlas Copco AB, Class B | 148,190 | 3,833 | ||||||
Boliden AB | 99,965 | 1,616 | ||||||
Electrolux AB, Series B | 91,950 | 2,417 | ||||||
Elekta AB, Class B | 130,854 | 1,287 | ||||||
Getinge AB, Class B | 70,940 | 1,785 | ||||||
Hennes & Mauritz AB, Class B | 350,881 | 14,559 | ||||||
Hexagon AB, Class B | 98,072 | 3,100 | ||||||
Husqvarna AB, Class B | 143,255 | 1,009 | ||||||
Industrivarden AB, Class C | 56,363 | 981 | ||||||
Investment AB Kinnevik, Class B | 89,311 | 3,225 | ||||||
Investor AB, Class B | 167,431 | 5,890 | ||||||
Lundin Petroleum AB * | 79,946 | 1,347 | ||||||
Millicom International Cellular S.A. SDR | 25,127 | 2,012 | ||||||
Nordea Bank AB | 1,122,294 | 14,540 | ||||||
Sandvik AB | 394,960 | 4,430 | ||||||
Securitas AB, Class B | 112,770 | 1,252 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 61 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
INTERNATIONAL EQUITY INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Sweden – 3.0% – continued | ||||||||
Skandinaviska Enskilda Banken AB, Class A | 570,480 | $7,578 | ||||||
Skanska AB, Class B | 137,392 | 2,830 | ||||||
SKF AB, Class B | 152,116 | 3,176 | ||||||
Svenska Cellulosa AB S.C.A., Class B | 216,847 | 5,157 | ||||||
Svenska Handelsbanken AB, Class A | 182,773 | 8,555 | ||||||
Swedbank AB, Class A | 331,828 | 8,313 | ||||||
Swedish Match AB | 73,189 | 2,363 | ||||||
Tele2 AB, Class B | 113,396 | 1,367 | ||||||
Telefonaktiebolaget LM Ericsson, | 1,121,067 | 14,150 | ||||||
TeliaSonera AB | 900,291 | 6,213 | ||||||
Volvo AB, Class B | 563,074 | 6,079 | ||||||
144,817 | ||||||||
Switzerland – 9.7% | ||||||||
ABB Ltd. (Registered) * | 810,315 | 18,130 | ||||||
Actelion Ltd. (Registered) * | 37,652 | 4,414 | ||||||
Adecco S.A. (Registered) * | 61,531 | 4,152 | ||||||
Aryzta A.G. * | 28,268 | 2,438 | ||||||
Aryzta A.G. (Aquis Exchange) * | 4,637 | 401 | ||||||
Baloise Holding A.G. (Registered) | 18,246 | 2,329 | ||||||
Barry Callebaut A.G. (Registered) * | 754 | 836 | ||||||
Chocoladefabriken Lindt & Spruengli A.G. (Participation Certificate) | 354 | 1,765 | ||||||
Chocoladefabriken Lindt & Spruengli A.G. (Registered) | 39 | 2,312 | ||||||
Cie Financiere Richemont S.A. (Registered) | 192,979 | 15,814 | ||||||
Coca-Cola HBC A.G. – CDI * | 72,464 | 1,563 | ||||||
Credit Suisse Group A.G. (Registered) * | 560,354 | 15,448 | ||||||
EMS-Chemie Holding A.G. (Registered) | 2,833 | 1,173 | ||||||
Geberit A.G. (Registered) | 14,040 | 4,523 | ||||||
Givaudan S.A. (Registered) * | 3,452 | 5,501 | ||||||
Glencore PLC * | 3,910,821 | 21,639 | ||||||
Holcim Ltd. (Registered) * | 84,565 | 6,136 | ||||||
Julius Baer Group Ltd. * | 83,696 | 3,734 | ||||||
Kuehne + Nagel International A.G. (Registered) | 20,631 | 2,603 | ||||||
Lonza Group A.G. (Registered) * | 20,126 | 2,428 | ||||||
Nestle S.A. (Registered) | 1,190,052 | 87,290 | ||||||
Novartis A.G. (Registered) | 848,996 | 79,957 | ||||||
Pargesa Holding S.A. (Bearer) | 10,972 | 871 | ||||||
Partners Group Holding A.G. | 6,042 | 1,591 | ||||||
Roche Holding A.G. (Genusschein) | 259,290 | 76,776 | ||||||
Schindler Holding A.G. (Registered) | 7,901 | 1,053 | ||||||
Schindler Holding A.G. (Participation Certificate) | 16,810 | 2,275 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
Switzerland – 9.7% – continued | ||||||||
SGS S.A. (Registered) | 2,053 | $4,240 | ||||||
Sika A.G. (Bearer) | 803 | 2,773 | ||||||
Sonova Holding A.G. (Registered) | 20,137 | 3,214 | ||||||
STMicroelectronics N.V. | 231,508 | 1,781 | ||||||
Sulzer A.G. (Registered) | 8,701 | 1,070 | ||||||
Swatch Group (The) A.G. (Bearer) | 11,324 | 5,365 | ||||||
Swatch Group (The) A.G. (Registered) | 20,161 | 1,765 | ||||||
Swiss Life Holding A.G. (Registered) * | 12,132 | 2,887 | ||||||
Swiss Prime Site A.G. (Registered) * | 20,290 | 1,507 | ||||||
Swiss Re A.G. * | 128,617 | 10,243 | ||||||
Swisscom A.G. (Registered) | 8,756 | 4,974 | ||||||
Syngenta A.G. (Registered) | 34,553 | 10,967 | ||||||
Transocean Ltd. | 133,467 | 4,289 | ||||||
UBS A.G. (Registered) * | 1,346,022 | 23,354 | ||||||
Wolseley PLC | 99,246 | 5,214 | ||||||
Zurich Insurance Group A.G. * | 55,081 | 16,379 | ||||||
467,174 | ||||||||
United Kingdom – 20.6% | ||||||||
3i Group PLC | 373,393 | 2,310 | ||||||
Aberdeen Asset Management PLC | 330,456 | 2,134 | ||||||
Admiral Group PLC | 70,004 | 1,451 | ||||||
Aggreko PLC | 92,309 | 2,308 | ||||||
AMEC PLC | 105,430 | 1,877 | ||||||
Anglo American PLC | 517,076 | 11,515 | ||||||
Antofagasta PLC | 142,151 | 1,658 | ||||||
ARM Holdings PLC | 515,575 | 7,512 | ||||||
ASOS PLC * | 18,858 | 688 | ||||||
Associated British Foods PLC | 130,533 | 5,655 | ||||||
AstraZeneca PLC | 466,258 | 33,405 | ||||||
Aviva PLC | 1,098,108 | 9,263 | ||||||
Babcock International Group PLC | 180,077 | 3,172 | ||||||
BAE Systems PLC | 1,178,273 | 9,004 | ||||||
Barclays PLC | 6,058,630 | 22,319 | ||||||
BG Group PLC | 1,263,498 | 23,242 | ||||||
BP PLC | 6,804,642 | 49,862 | ||||||
British American Tobacco PLC | 691,436 | 38,865 | ||||||
British Land (The) Co. PLC | 354,104 | 4,020 | ||||||
British Sky Broadcasting Group PLC | 378,316 | 5,380 | ||||||
BT Group PLC | 2,915,892 | 17,861 | ||||||
Bunzl PLC | 126,270 | 3,281 | ||||||
Burberry Group PLC | 166,998 | 4,074 | ||||||
Capita PLC | 244,691 | 4,600 | ||||||
Carnival Corp. | 2,945 | 118 | ||||||
Centrica PLC | 1,867,289 | 9,286 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 62 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
United Kingdom – 20.6% – continued | ||||||||
Cobham PLC | 411,686 | $1,932 | ||||||
Compass Group PLC | 626,093 | 10,112 | ||||||
Croda International PLC | 48,301 | 1,602 | ||||||
Diageo PLC | 928,134 | 26,836 | ||||||
Direct Line Insurance Group PLC | 540,548 | 2,577 | ||||||
Dixons Carphone PLC | 350,400 | 2,078 | ||||||
easyJet PLC | 55,753 | 1,278 | ||||||
Experian PLC | 365,702 | 5,809 | ||||||
Fresnillo PLC | 80,337 | 986 | ||||||
Friends Life Group Ltd. | 507,917 | 2,528 | ||||||
G4S PLC | 594,752 | 2,412 | ||||||
GKN PLC | 589,293 | 3,026 | ||||||
GlaxoSmithKline PLC | 1,793,668 | 41,054 | ||||||
Hammerson PLC | 256,565 | 2,385 | ||||||
Hargreaves Lansdown PLC | 85,003 | 1,294 | ||||||
HSBC Holdings PLC | 7,042,006 | 71,669 | ||||||
ICAP PLC | 193,063 | 1,207 | ||||||
IMI PLC | 98,584 | 1,957 | ||||||
Imperial Tobacco Group PLC | 353,658 | 15,213 | ||||||
Inmarsat PLC | 153,811 | 1,742 | ||||||
InterContinental Hotels Group PLC | 90,067 | 3,473 | ||||||
International Consolidated Airlines Group S.A. * | 391,473 | 2,312 | ||||||
Intertek Group PLC | 62,649 | 2,653 | ||||||
Intu Properties PLC | 339,752 | 1,777 | ||||||
ITV PLC | 1,427,900 | 4,802 | ||||||
J Sainsbury PLC | 446,156 | 1,816 | ||||||
Johnson Matthey PLC | 77,600 | 3,651 | ||||||
Kingfisher PLC | 890,332 | 4,666 | ||||||
Land Securities Group PLC | 291,768 | 4,897 | ||||||
Legal & General Group PLC | 2,200,448 | 8,164 | ||||||
Lloyds Banking Group PLC * | 21,020,781 | 26,047 | ||||||
London Stock Exchange Group PLC | 88,448 | 2,674 | ||||||
Marks & Spencer Group PLC | 602,799 | 3,937 | ||||||
Meggitt PLC | 287,405 | 2,101 | ||||||
Melrose Industries PLC | 388,380 | 1,550 | ||||||
National Grid PLC | 1,375,468 | 19,722 | ||||||
Next PLC | 57,001 | 6,102 | ||||||
Old Mutual PLC | 1,822,140 | 5,342 | ||||||
Pearson PLC | 308,221 | 6,191 | ||||||
Persimmon PLC * | 110,004 | 2,364 | ||||||
Petrofac Ltd. | 93,636 | 1,565 | ||||||
Prudential PLC | 945,679 | 21,004 | ||||||
Randgold Resources Ltd. | 31,638 | 2,148 | ||||||
Reckitt Benckiser Group PLC | 239,471 | 20,727 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
United Kingdom – 20.6% – continued | ||||||||
Reed Elsevier N.V. | 257,439 | $5,833 | ||||||
Reed Elsevier PLC | 214,853 | 3,433 | ||||||
Reed Elsevier PLC | 213,182 | 3,403 | ||||||
Rexam PLC | 254,107 | 2,025 | ||||||
Rio Tinto Ltd. | 159,623 | 8,296 | ||||||
Rio Tinto PLC | 471,595 | 23,154 | ||||||
Rolls-Royce Holdings PLC * | 697,886 | 10,818 | ||||||
Royal Bank of Scotland Group PLC * | 918,074 | 5,472 | ||||||
Royal Dutch Shell PLC, Class A | 1,450,489 | 55,325 | ||||||
Royal Dutch Shell PLC, Class A (LSE European Quoting Service) | 275 | 11 | ||||||
Royal Dutch Shell PLC, Class B | 899,951 | 35,501 | ||||||
Royal Mail PLC | 233,152 | 1,482 | ||||||
RSA Insurance Group PLC * | 382,416 | 2,995 | ||||||
SABMiller PLC | 355,004 | 19,727 | ||||||
Sage Group (The) PLC | 418,943 | 2,477 | ||||||
Schroders PLC | 43,638 | 1,683 | ||||||
Segro PLC | 262,644 | 1,540 | ||||||
Severn Trent PLC | 86,064 | 2,608 | ||||||
Shire PLC | 217,435 | 18,793 | ||||||
Smith & Nephew PLC | 334,508 | 5,619 | ||||||
Smiths Group PLC | 153,170 | 3,137 | ||||||
Sports Direct International PLC * | 93,513 | 933 | ||||||
SSE PLC | 361,110 | 9,016 | ||||||
Standard Chartered PLC | 912,545 | 16,811 | ||||||
Standard Life PLC | 880,119 | 5,879 | ||||||
Subsea 7 S.A. | 99,680 | 1,422 | ||||||
Tate & Lyle PLC | 167,008 | 1,593 | ||||||
Tesco PLC | 3,005,292 | 8,990 | ||||||
Travis Perkins PLC | 94,492 | 2,536 | ||||||
TUITravelPLC | 177,700 | 1,116 | ||||||
Tullow Oil PLC | 345,280 | 3,595 | ||||||
Unilever N.V. – CVA | 599,447 | 23,828 | ||||||
Unilever PLC | 472,713 | 19,732 | ||||||
United Utilities Group PLC | 259,497 | 3,383 | ||||||
Vodafone Group PLC | 9,771,924 | 32,211 | ||||||
Weir Group (The) PLC | 81,243 | 3,283 | ||||||
Whitbread PLC | 68,039 | 4,580 | ||||||
William Hill PLC | 311,229 | 1,858 | ||||||
WM Morrison Supermarkets PLC | 758,865 | 2,070 | ||||||
WPP PLC | 493,908 | 9,879 | ||||||
998,289 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 63 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
INTERNATIONAL EQUITY INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.7% – continued | ||||||||
United States – 0.1% | ||||||||
Carnival PLC | 67,472 | $2,682 | ||||||
Total Common Stocks (4) | ||||||||
(Cost $4,154,258) | 4,720,938 | |||||||
PREFERRED STOCKS – 0.5% | ||||||||
Germany – 0.5% | ||||||||
Bayerische Motoren Werke A.G. | 19,642 | 1,597 | ||||||
Fuchs Petrolub S.E. | 25,469 | 967 | ||||||
Henkel A.G. & Co. KGaA | 65,496 | 6,541 | ||||||
Porsche Automobil Holding S.E. | 57,398 | 4,595 | ||||||
Volkswagen A.G. | 60,120 | 12,481 | ||||||
26,181 | ||||||||
Total Preferred Stocks (4) | ||||||||
(Cost $22,239) | 26,181 | |||||||
RIGHTS – 0.0% | ||||||||
Austria – 0.0% | ||||||||
Immoeast A.G. (1)* | 63,165 | – | ||||||
Immoeast A.G. (1)* | 62,543 | – | ||||||
– | ||||||||
Italy – 0.0% | ||||||||
Fiat S.p.A. * | 318,440 | – | ||||||
Spain – 0.0% | ||||||||
Banco Bilbao Vizcaya Argentaria S.A. * | 2,166,367 | 216 | ||||||
Banco Popular Espanol S.A. * | 677,936 | 10 | ||||||
226 | ||||||||
Total Rights (4) | ||||||||
(Cost $230) | 226 | |||||||
INVESTMENT COMPANIES – 0.9% | ||||||||
iShares MSCI EAFE ETF | 142,445 | 9,133 | ||||||
Northern Institutional Funds – Diversified Assets Portfolio, 0.01% (5)(6) | 32,178,909 | 32,179 | ||||||
Total Investment Companies | ||||||||
(Cost $41,215) | 41,312 | |||||||
Total Investments – 99.1% | ||||||||
(Cost $4,217,942) | 4,788,657 | |||||||
Other Assets less Liabilities – 0.9% |
| 45,413 | ||||||
NET ASSETS – 100.0% | $4,834,070 |
(1) | Level 3 asset that is worthless, bankrupt or has been delisted. |
(2) | 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. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Trustees of Northern Funds. |
(3) | Restricted security that has been deemed illiquid. At September 30, 2014, the value of these restricted illiquid securities amounted to approximately $629,000 or 0.0% of net assets. Additional information on each restricted illiquid security is as follows: |
SECURITY | ACQUISITION AND ENFORCEABLE DATE | ACQUISITION COST (000s) | ||||
Aker Solutions Holding ASA | 5/10/10-8/27/14 | $685 |
(4) | In accordance with the Fund’s prospectus, adjustment factors were provided by an independent evaluation service to determine the value of certain foreign securities. |
(5) | At March 31, 2014, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $39,661,000 with net sales of approximately $7,482,000 during the six months ended September 30, 2014. |
(6) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
* | Non-Income Producing Security |
Percentages shown are based on Net Assets.
At September 30, 2014, the Fund had outstanding forward foreign currency exchange contracts as follows:
COUNTERPARTY | CONTRACTS TO DELIVER CURRENCY | AMOUNT (LOCAL CURRENCY) (000s) | IN EXCHANGE FOR CURRENCY | AMOUNT (LOCAL CURRENCY) (000s) | SETTLEMENT DATE | UNREALIZED GAINS (LOSSES) (000s) | ||||||||||||||
Morgan Stanley | Australian Dollar | 143 | United States Dollar | 128 | 12/17/14 | $4 | ||||||||||||||
Citibank | United States Dollar | 1,517 | British Pound | 935 | 12/17/14 | (2) | ||||||||||||||
Goldman Sachs | United States Dollar | 1,047 | Danish Krone | 6,016 | 12/17/14 | (26) | ||||||||||||||
UBS | United States Dollar | 11,198 | Euro | 8,644 | 12/17/14 | (274) | ||||||||||||||
Morgan Stanley | United States Dollar | 2,299 | Japanese Yen | 246,551 | 12/17/14 | (49) | ||||||||||||||
Morgan Stanley | United States Dollar | 700 | Swiss Franc | 668 | 12/17/14 | –* | ||||||||||||||
Morgan Stanley | United States Dollar | 550 | Swiss Franc | 523 | 12/17/14 | (2) | ||||||||||||||
Morgan Stanley | United States Dollar | 1,300 | Swiss Franc | 1,215 | 12/17/14 | (26) | ||||||||||||||
Morgan Stanley | United States Dollar | 1,371 | Swiss Franc | 1,280 | 12/17/14 | (29) | ||||||||||||||
Total | $(404) |
* | Amount rounds to less than one thousand. |
At September 30, 2014, the Fund had open futures contracts as follows:
TYPE | NUMBER OF CONTRACTS | NOTIONAL AMOUNT (000s) | CONTRACT POSITION | CONTRACT EXP. | UNREALIZED GAINS (LOSSES) (000s) | |||||||||||||||
Euro Stoxx 50 (Euro) | 752 | $30,612 | Long | 12/14 | $90 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 64 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
TYPE | NUMBER OF CONTRACTS | NOTIONAL AMOUNT (000s) | CONTRACT POSITION | CONTRACT EXP. | UNREALIZED GAINS (LOSSES) (000s) | |||||||||||||||
FTSE 100 Index (British Pound) | 188 | $20,132 | Long | 12/14 | $(423) | |||||||||||||||
Hang Seng Index (Hong Kong Dollar) | 11 | 1,616 | Long | 10/14 | (70) | |||||||||||||||
SPI 200 Index (Australian Dollar) | 61 | 7,054 | Long | 12/14 | (228) | |||||||||||||||
Topix Index (Japanese Yen) | 87 | 10,522 | Long | 12/14 | 247 | |||||||||||||||
Yen Denominated Nikkei 225 (Japanese Yen) | 91 | 6,721 | Long | 12/14 | 155 | |||||||||||||||
Total | $(229) |
At September 30, 2014, the industry sectors for the Fund were:
INDUSTRY SECTOR | % OF LONG-TERM INVESTMENTS | |||
Consumer Discretionary | 11.6% | |||
Consumer Staples | 10.9 | |||
Energy | 6.8 | |||
Financials | 25.8 | |||
Health Care | 11.2 | |||
Industrials | 12.5 | |||
Information Technology | 4.7 | |||
Materials | 7.7 | |||
Telecommunication Services | 4.9 | |||
Utilities | 3.9 | |||
Total | 100.0% |
At September 30, 2014, the Fund’s investments were denominated in the following currencies:
CONCENTRATION BY CURRENCY | % OF LONG-TERM INVESTMENTS | |||
Euro | 30.4% | |||
British Pound | 21.2 | |||
Japanese Yen | 21.0 | |||
Swiss Franc | 9.2 | |||
Australian Dollar | 7.5 | |||
All other currencies less than 5% | 10.7 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings, and/or securities indices). The Fund adjusted the price of certain foreign equity securities held in its portfolio on September 30, 2014 using adjustment factors designed to reflect more accurately the fair value of the securities.
Level 3 – Significant unobservable inputs (e.g., information about assumptions including risk, market participants would use in pricing a strategy).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Common Stocks | ||||||||||||||||
Ireland | $303 | $14,238 | – | $14,541 | ||||||||||||
Israel | 276 | 25,908 | – | 26,184 | ||||||||||||
Netherlands | 202 | 104,354 | – | 104,556 | ||||||||||||
Norway | 629 | 38,237 | – | 38,866 | ||||||||||||
Portugal | – | 8,615 | 11 | 8,626 | ||||||||||||
Switzerland | 3,945 | 463,229 | – | 467,174 | ||||||||||||
United Kingdom | 118 | 998,171 | – | 998,289 | ||||||||||||
All Other Countries | – | 3,062,702 | (1) | – | 3,062,702 | |||||||||||
Preferred Stocks | – | 26,181 | – | 26,181 | ||||||||||||
Rights | 226 | – | – | 226 | ||||||||||||
Investment Companies | 41,312 | – | – | 41,312 | ||||||||||||
Total Investments | $47,011 | $4,741,635 | $11 | $4,788,657 | ||||||||||||
OTHER FINANCIAL INSTRUMENTS |
| |||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $492 | $– | $– | $492 | ||||||||||||
Forward Foreign Currency Exchange Contracts | – | 4 | 4 | |||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | (721 | ) | – | – | (721 | ) | ||||||||||
Forward Foreign Currency Exchange Contracts | – | (408 | ) | – | (408 | ) | ||||||||||
Total Other Financial Instruments | $ | (229) | $ | (404) | $– | $ | (633) |
(1) | Classifications as defined in the Schedule of Investments. |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 65 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
INTERNATIONAL EQUITY INDEX FUND continued | SEPTEMBER 30, 2014 (UNAUDITED) |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, the Fund had transfers from Level 1 to Level 2 as disclosed below:
Transfers from Level 1 to Level 2 | ||||||
Country | Value (000s) | Reason | ||||
Common Stocks | ||||||
Netherlands | $2,447 | Valuations at last trade with foreign fair value adjustments |
At September 30, 2014, the Fund had transfers from Level 2 to Level 1 as disclosed below:
Transfers from Level 2 to Level 1 | ||||||
Country | Value (000s) | Reason | ||||
Common Stocks | ||||||
Netherlands | $202 | Valuations at last trade price | ||||
Switzerland | 3,945 | Valuations at last trade price | ||||
Total | $4,147 |
The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:
BALANCE AS OF 3/31/14 (000s) | REALIZED GAINS (LOSSES) (000s) | CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) (000s) | PURCHASES (000s) | SALES (000s) | TRANSFERS LEVEL 3 | TRANSFERS OUT OF LEVEL 3 (000s) | BALANCE AS OF 9/30/14 (000s) | CHANGE IN UNREALIZED (000s) | ||||||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||||||||||||
Portugal | $ | – | $ | – | $ | – | $ | – | $ | – | $ | 11 | $ | – | $ | 11 | $ | (1,377 | ) |
(1) | The Transfers Into Level 3, noted above, are due to the Fund receiving valuations provided by the Asset Management PVC. |
The Fund valued the security included in the balance as of 9/30/14 above using prices provided by the Asset Management PVC.
FAIR VALUE AT 9/30/14 (000s) | VALUATION TECHNIQUES | UNOBSERVABLE INPUTS | ||||||
Common Stock | $11 | Market Comparable Companies | Price to Earnings Multiple / Liquidity Discount |
The significant unobservable inputs used in the fair value measurement are the price to earnings multiple along with liquidity discounts. Significant increases (decreases) in the price to earnings multiple in isolation would result in a significantly higher (lower) fair value measurement while an increase (decrease) in liquidity discounts in isolation would result in a significantly lower (higher) fair value measurement.
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 66 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
MID CAP INDEX FUND | SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 98.2% | ||||||||
Aerospace & Defense – 2.2% | ||||||||
Alliant Techsystems, Inc. | 27,496 | $3,510 | ||||||
B/E Aerospace, Inc. * | 90,202 | 7,572 | ||||||
Esterline Technologies Corp. * | 27,236 | 3,030 | ||||||
Exelis, Inc. | 161,333 | 2,668 | ||||||
Huntington Ingalls Industries, Inc. | 41,784 | 4,354 | ||||||
Oshkosh Corp. | 72,314 | 3,193 | ||||||
Triumph Group, Inc. | 44,364 | 2,886 | ||||||
Woodward, Inc. | 50,051 | 2,383 | ||||||
29,596 | ||||||||
Apparel & Textile Products – 1.4% | ||||||||
Carter’s, Inc. | 45,703 | 3,543 | ||||||
Deckers Outdoor Corp. * | 29,524 | 2,869 | ||||||
Hanesbrands, Inc. | 85,335 | 9,168 | ||||||
Kate Spade & Co. * | 109,483 | 2,872 | �� | |||||
18,452 | ||||||||
Asset Management – 1.2% | ||||||||
Eaton Vance Corp. | 101,559 | 3,832 | ||||||
Federated Investors, Inc., Class B | 81,836 | 2,403 | ||||||
Janus Capital Group, Inc. | 127,653 | 1,856 | ||||||
SEI Investments Co. | 112,130 | 4,054 | ||||||
Waddell & Reed Financial, Inc., Class A | 72,547 | 3,750 | ||||||
15,895 | ||||||||
Automotive – 0.3% | ||||||||
Gentex Corp. | 125,990 | 3,373 | ||||||
Banking – 5.3% | ||||||||
Associated Banc-Corp. | 132,640 | 2,311 | ||||||
Astoria Financial Corp. | 76,454 | 947 | ||||||
BancorpSouth, Inc. | 72,374 | 1,458 | ||||||
Bank of Hawaii Corp. | 37,778 | 2,146 | ||||||
Cathay General Bancorp | 62,629 | 1,555 | ||||||
City National Corp. | 41,405 | 3,133 | ||||||
Commerce Bancshares, Inc. | 67,708 | 3,023 | ||||||
Cullen/Frost Bankers, Inc. | 47,121 | 3,605 | ||||||
East West Bancorp, Inc. | 123,712 | 4,206 | ||||||
First Horizon National Corp. | 205,115 | 2,519 | ||||||
First Niagara Financial Group, Inc. | 301,235 | 2,509 | ||||||
FirstMerit Corp. | 141,029 | 2,482 | ||||||
Fulton Financial Corp. | 160,066 | 1,774 | ||||||
Hancock Holding Co. | 69,994 | 2,243 | ||||||
International Bancshares Corp. | 50,411 | 1,243 | ||||||
New York Community Bancorp, Inc. | 380,276 | 6,035 | ||||||
PacWest Bancorp | 83,017 | 3,423 | ||||||
Prosperity Bancshares, Inc. | 51,119 | 2,922 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 98.2% – continued | ||||||||
Banking – 5.3% – continued | ||||||||
Signature Bank * | 43,181 | $4,839 | ||||||
SVB Financial Group * | 43,489 | 4,875 | ||||||
Synovus Financial Corp. | 120,353 | 2,845 | ||||||
TCF Financial Corp. | 142,222 | 2,209 | ||||||
Trustmark Corp. | 57,958 | 1,335 | ||||||
Umpqua Holdings Corp. | 160,518 | 2,644 | ||||||
Valley National Bancorp | 164,434 | 1,593 | ||||||
Washington Federal, Inc. | 85,699 | 1,745 | ||||||
Webster Financial Corp. | 76,697 | 2,235 | ||||||
71,854 | ||||||||
Biotechnology & Pharmaceuticals – 2.0% |
| |||||||
Cubist Pharmaceuticals, Inc. * | 65,001 | 4,312 | ||||||
Endo International PLC * | 131,622 | 8,995 | ||||||
Salix Pharmaceuticals Ltd. * | 54,561 | 8,525 | ||||||
United Therapeutics Corp. * | 40,516 | 5,212 | ||||||
27,044 | ||||||||
Chemicals – 3.0% | ||||||||
Albemarle Corp. | 66,946 | 3,943 | ||||||
Ashland, Inc. | 61,723 | 6,426 | ||||||
Cabot Corp. | 55,309 | 2,808 | ||||||
Cytec Industries, Inc. | 61,144 | 2,892 | ||||||
Minerals Technologies, Inc. | 30,042 | 1,854 | ||||||
NewMarket Corp. | 9,199 | 3,505 | ||||||
Olin Corp. | 67,340 | 1,700 | ||||||
PolyOne Corp. | 78,815 | 2,804 | ||||||
Rayonier Advanced Materials, Inc. | 36,196 | 1,191 | ||||||
RPM International, Inc. | 114,592 | 5,246 | ||||||
Sensient Technologies Corp. | 41,129 | 2,153 | ||||||
Valspar (The) Corp. | 65,298 | 5,158 | ||||||
39,680 | ||||||||
Commercial Services – 2.2% | ||||||||
CDK Global, Inc. * | 137,543 | 4,207 | ||||||
Civeo Corp. | 92,476 | 1,074 | ||||||
Corporate Executive Board (The) Co. | 28,951 | 1,739 | ||||||
Deluxe Corp. | 42,709 | 2,356 | ||||||
FTI Consulting, Inc. * | 34,933 | 1,221 | ||||||
HMS Holdings Corp. * | 74,107 | 1,397 | ||||||
Manpowergroup, Inc. | 68,442 | 4,798 | ||||||
Rollins, Inc. | 54,267 | 1,589 | ||||||
RR Donnelley & Sons Co. | 170,117 | 2,800 | ||||||
Sotheby’s | 52,739 | 1,884 | ||||||
Towers Watson & Co., Class A | 60,242 | 5,994 | ||||||
TravelCenters of America LLC (1)* | 80,000 | – |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 67 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MID CAP INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 98.2% – continued | ||||||||
Commercial Services – 2.2% – continued |
| |||||||
Vectrus, Inc. * | 8,763 | $171 | ||||||
29,230 | ||||||||
Construction Materials – 1.1% | ||||||||
Carlisle Cos., Inc. | 55,154 | 4,433 | ||||||
Eagle Materials, Inc. | 43,160 | 4,395 | ||||||
Louisiana-Pacific Corp. * | 122,937 | 1,671 | ||||||
MDU Resources Group, Inc. | 166,180 | 4,621 | ||||||
15,120 | ||||||||
Consumer Products – 2.8% | ||||||||
Church & Dwight Co., Inc. | 114,442 | 8,029 | ||||||
Dean Foods Co. | 80,102 | 1,061 | ||||||
Energizer Holdings, Inc. | 52,955 | 6,525 | ||||||
Flowers Foods, Inc. | 158,286 | 2,906 | ||||||
Hain Celestial Group (The), Inc. * | 43,210 | 4,423 | ||||||
Ingredion, Inc. | 64,117 | 4,859 | ||||||
Lancaster Colony Corp. | 16,479 | 1,405 | ||||||
Post Holdings, Inc. * | 38,725 | 1,285 | ||||||
Tootsie Roll Industries, Inc. | 17,854 | 500 | ||||||
Universal Corp. | 19,846 | 881 | ||||||
WhiteWave Foods (The) Co. * | 149,493 | 5,431 | ||||||
37,305 | ||||||||
Consumer Services – 1.0% | ||||||||
Aaron’s, Inc. | 55,299 | 1,345 | ||||||
Apollo Education Group, Inc. * | 84,352 | 2,121 | ||||||
DeVry Education Group, Inc. | 49,559 | 2,122 | ||||||
Graham Holdings Co., Class B | 3,723 | 2,605 | ||||||
Rent-A-Center, Inc. | 45,203 | 1,372 | ||||||
Service Corp. International | 181,991 | 3,847 | ||||||
13,412 | ||||||||
Containers & Packaging – 1.6% | ||||||||
AptarGroup, Inc. | 55,783 | 3,386 | ||||||
Greif, Inc., Class A | 29,254 | 1,282 | ||||||
Packaging Corp. of America | 84,473 | 5,391 | ||||||
Rock-Tenn Co., Class A | 123,258 | 5,865 | ||||||
Silgan Holdings, Inc. | 37,080 | 1,743 | ||||||
Sonoco Products Co. | 86,958 | 3,416 | ||||||
21,083 | ||||||||
Design, Manufacturing & Distribution – 0.7% |
| |||||||
Arrow Electronics, Inc. * | 84,857 | 4,697 | ||||||
Avnet, Inc. | 119,084 | 4,942 | ||||||
9,639 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 98.2% – continued | ||||||||
Distributors – Consumer Staples – 0.2% | ||||||||
United Natural Foods, Inc. * | 43,025 | $2,644 | ||||||
Distributors – Discretionary – 0.9% | ||||||||
Ingram Micro, Inc., Class A * | 134,019 | 3,459 | ||||||
LKQ Corp. * | 258,845 | 6,883 | ||||||
Tech Data Corp. * | 32,668 | 1,923 | ||||||
12,265 | ||||||||
Electrical Equipment – 2.4% | ||||||||
A.O. Smith Corp. | 64,758 | 3,062 | ||||||
Acuity Brands, Inc. | 37,171 | 4,375 | ||||||
Belden, Inc. | 37,128 | 2,377 | ||||||
Cognex Corp. * | 73,302 | 2,952 | ||||||
Hubbell, Inc., Class B | 46,640 | 5,621 | ||||||
Itron, Inc. * | 33,674 | 1,324 | ||||||
Lennox International, Inc. | 38,551 | 2,963 | ||||||
National Instruments Corp. | 86,482 | 2,675 | ||||||
Trimble Navigation Ltd. * | 222,159 | 6,776 | ||||||
32,125 | ||||||||
Engineering & Construction Services – 0.7% |
| |||||||
AECOM Technology Corp. * | 85,766 | 2,895 | ||||||
Granite Construction, Inc. | 31,153 | 991 | ||||||
KBR, Inc. | 125,198 | 2,357 | ||||||
URS Corp. | 59,533 | 3,430 | ||||||
9,673 | ||||||||
Forest & Paper Products – 0.1% | ||||||||
Domtar Corp. | 55,158 | 1,938 | ||||||
Gaming, Lodging & Restaurants – 1.5% | ||||||||
Bally Technologies, Inc. * | 32,789 | 2,646 | ||||||
Brinker International, Inc. | 55,293 | 2,808 | ||||||
Cheesecake Factory (The), Inc. | 39,053 | 1,777 | ||||||
Domino’s Pizza, Inc. | 47,461 | 3,653 | ||||||
International Game Technology | 213,366 | 3,599 | ||||||
Panera Bread Co., Class A * | 21,906 | 3,565 | ||||||
Wendy’s (The) Co. | 236,703 | 1,955 | ||||||
20,003 | ||||||||
Hardware – 3.3% | ||||||||
3D Systems Corp. * | 88,609 | 4,109 | ||||||
ADTRAN, Inc. | 48,088 | 987 | ||||||
ARRIS Group, Inc. * | 112,856 | 3,200 | ||||||
Ciena Corp. * | 91,710 | 1,533 | ||||||
Diebold, Inc. | 55,053 | 1,944 | ||||||
FEI Co. | 35,988 | 2,714 | ||||||
Fortinet, Inc. * | 118,578 | 2,996 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 68 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 98.2% – continued | ||||||||
Hardware – 3.3% – continued | ||||||||
InterDigital, Inc. | 34,330 | $1,367 | ||||||
JDS Uniphase Corp. * | 196,163 | 2,511 | ||||||
Knowles Corp. * | 72,182 | 1,913 | ||||||
Lexmark International, Inc., Class A | 53,055 | 2,255 | ||||||
NCR Corp. * | 144,444 | 4,826 | ||||||
Plantronics, Inc. | 36,441 | 1,741 | ||||||
Polycom, Inc. * | 117,687 | 1,446 | ||||||
Riverbed Technolog, Inc. * | 136,788 | 2,537 | ||||||
Rovi Corp. * | 80,501 | 1,590 | ||||||
VeriFone Systems, Inc. * | 96,922 | 3,332 | ||||||
Zebra Technologies Corp., Class A * | 43,700 | 3,101 | ||||||
44,102 | ||||||||
Health Care Facilities & Services – 3.5% | ||||||||
Centene Corp. * | 50,196 | 4,152 | ||||||
Charles River Laboratories International, Inc. * | 40,026 | 2,391 | ||||||
Community Health Systems, Inc. * | 99,043 | 5,426 | ||||||
Covance, Inc. * | 48,313 | 3,802 | ||||||
Health Net, Inc. * | 69,456 | 3,203 | ||||||
Henry Schein, Inc. * | 72,670 | 8,464 | ||||||
LifePoint Hospitals, Inc. * | 38,733 | 2,680 | ||||||
MEDNAX, Inc. * | 85,958 | 4,712 | ||||||
Omnicare, Inc. | 83,551 | 5,202 | ||||||
Owens & Minor, Inc. | 53,480 | 1,751 | ||||||
VCA, Inc. * | 73,884 | 2,906 | ||||||
WellCare Health Plans, Inc. * | 37,327 | 2,252 | ||||||
46,941 | ||||||||
Home & Office Products – 2.0% | ||||||||
Fortune Brands Home & Security, Inc. | 135,917 | 5,588 | ||||||
Herman Miller, Inc. | 50,596 | 1,510 | ||||||
HNI Corp. | 38,322 | 1,379 | ||||||
KB Home | 76,605 | 1,144 | ||||||
MDC Holdings, Inc. | 33,245 | 842 | ||||||
NVR, Inc. * | 3,442 | 3,890 | ||||||
Scotts Miracle-Gro (The) Co., Class A | 38,403 | 2,112 | ||||||
Tempur Sealy International, Inc. * | 52,580 | 2,953 | ||||||
Toll Brothers, Inc. * | 139,092 | 4,334 | ||||||
Tupperware Brands Corp. | 43,000 | 2,969 | ||||||
26,721 | ||||||||
Industrial Services – 0.4% | ||||||||
MSC Industrial Direct Co., Inc., Class A | 43,901 | 3,752 | ||||||
Watsco, Inc. | 23,218 | 2,001 | ||||||
5,753 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 98.2% – continued | ||||||||
Institutional Financial Services – 0.7% | ||||||||
CBOE Holdings, Inc. | 73,197 | $3,918 | ||||||
Raymond James Financial, Inc. | 107,621 | 5,766 | ||||||
9,684 | ||||||||
Insurance – 4.6% | ||||||||
Alleghany Corp. * | 14,014 | 5,860 | ||||||
American Financial Group, Inc. | 64,254 | 3,720 | ||||||
Arthur J Gallagher & Co. | 136,384 | 6,186 | ||||||
Aspen Insurance Holdings Ltd. | 55,781 | 2,386 | ||||||
Brown & Brown, Inc. | 101,291 | 3,256 | ||||||
Everest Re Group Ltd. | 38,970 | 6,314 | ||||||
Hanover Insurance Group (The), Inc. | 37,639 | 2,312 | ||||||
HCC Insurance Holdings, Inc. | 86,150 | 4,160 | ||||||
Kemper Corp. | 43,258 | 1,477 | ||||||
Mercury General Corp. | 30,723 | 1,500 | ||||||
Old Republic International Corp. | 209,831 | 2,996 | ||||||
Primerica, Inc. | 46,052 | 2,221 | ||||||
Protective Life Corp. | 67,841 | 4,709 | ||||||
Reinsurance Group of America, Inc. | 58,822 | 4,713 | ||||||
RenaissanceRe Holdings Ltd. | 34,561 | 3,456 | ||||||
StanCorp Financial Group, Inc. | 37,118 | 2,345 | ||||||
WR Berkley Corp. | 87,061 | 4,161 | ||||||
61,772 | ||||||||
Iron & Steel – 1.7% | ||||||||
Carpenter Technology Corp. | 45,116 | 2,037 | ||||||
Cliffs Natural Resources, Inc. | 130,581 | 1,355 | ||||||
Commercial Metals Co. | 100,839 | 1,721 | ||||||
Reliance Steel & Aluminum Co. | 66,954 | 4,580 | ||||||
Steel Dynamics, Inc. | 205,902 | 4,656 | ||||||
TimkenSteel Corp. | 32,330 | 1,503 | ||||||
United States Steel Corp. | 124,486 | 4,876 | ||||||
Worthington Industries, Inc. | 44,148 | 1,643 | ||||||
22,371 | ||||||||
Leisure Products – 1.4% | ||||||||
Brunswick Corp. | 80,132 | 3,377 | ||||||
Jarden Corp. * | 102,173 | 6,141 | ||||||
Polaris Industries, Inc. | 52,031 | 7,794 | ||||||
Thor Industries, Inc. | 39,821 | 2,051 | ||||||
19,363 | ||||||||
Machinery – 3.0% | ||||||||
AGCO Corp. | 73,336 | 3,334 | ||||||
Crane Co. | 42,896 | 2,711 | ||||||
Graco, Inc. | 51,679 | 3,771 | ||||||
IDEX Corp. | 68,627 | 4,966 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 69 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MID CAP INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 98.2% – continued | ||||||||
Machinery – 3.0% – continued | ||||||||
ITT Corp. | 78,134 | $3,511 | ||||||
Kennametal, Inc. | 66,922 | 2,765 | ||||||
Lincoln Electric Holdings, Inc. | 67,774 | 4,686 | ||||||
MSA Safety, Inc. | 27,177 | 1,343 | ||||||
Nordson Corp. | 50,292 | 3,826 | ||||||
Regal-Beloit Corp. | 38,458 | 2,471 | ||||||
SPX Corp. | 36,483 | 3,427 | ||||||
Terex Corp. | 93,922 | 2,984 | ||||||
39,795 | ||||||||
Manufactured Goods – 0.4% | ||||||||
Timken (The) Co. | 65,320 | 2,769 | ||||||
Valmont Industries, Inc. | 22,464 | 3,031 | ||||||
5,800 | ||||||||
Media – 1.5% | ||||||||
AMC Networks, Inc., Class A * | 50,310 | 2,939 | ||||||
AOL, Inc. * | 66,876 | 3,006 | ||||||
Conversant, Inc. * | 51,732 | 1,772 | ||||||
DreamWorks Animation SKG, Inc., Class A * | 61,811 | 1,686 | ||||||
John Wiley & Sons, Inc., Class A | 39,898 | 2,239 | ||||||
Lamar Advertising Co., Class A | 68,652 | 3,381 | ||||||
Meredith Corp. | 31,334 | 1,341 | ||||||
New York Times (The) Co., Class A | 112,642 | 1,264 | ||||||
Time, Inc. * | 92,762 | 2,173 | ||||||
19,801 | ||||||||
Medical Equipment & Devices – 3.8% | ||||||||
Align Technology, Inc. * | 62,387 | 3,224 | ||||||
Bio-Rad Laboratories, Inc., Class A * | 17,650 | 2,002 | ||||||
Cooper (The) Cos., Inc. | 41,356 | 6,441 | ||||||
Hill-Rom Holdings, Inc. | 48,674 | 2,017 | ||||||
Hologic, Inc. * | 207,293 | 5,043 | ||||||
IDEXX Laboratories, Inc. * | 43,122 | 5,081 | ||||||
Mettler-Toledo International, Inc. * | 24,737 | 6,336 | ||||||
ResMed, Inc. | 120,484 | 5,936 | ||||||
Sirona Dental Systems, Inc. * | �� | 47,191 | 3,619 | |||||
STERIS Corp. | 51,010 | 2,753 | ||||||
Techne Corp. | 31,720 | 2,967 | ||||||
Teleflex, Inc. | 35,700 | 3,750 | ||||||
Thoratec Corp. * | 48,836 | 1,305 | ||||||
50,474 | ||||||||
Metals & Mining – 0.6% | ||||||||
Compass Minerals International, Inc. | 28,971 | 2,441 | ||||||
Harsco Corp. | 68,416 | 1,465 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 98.2% – continued | ||||||||
Metals & Mining – 0.6% – continued | ||||||||
Royal Gold, Inc. | 56,111 | $3,644 | ||||||
7,550 | ||||||||
Oil, Gas & Coal – 5.6% | ||||||||
Atwood Oceanics, Inc. * | 51,444 | 2,248 | ||||||
CARBO Ceramics, Inc. | 16,942 | 1,004 | ||||||
Dresser-Rand Group, Inc. * | 65,885 | 5,420 | ||||||
Dril-Quip, Inc. * | 34,124 | 3,051 | ||||||
Energen Corp. | 62,720 | 4,531 | ||||||
Gulfport Energy Corp. * | 73,670 | 3,934 | ||||||
Helix Energy Solutions Group, Inc. * | 83,608 | 1,844 | ||||||
HollyFrontier Corp. | 170,261 | 7,437 | ||||||
Murphy USA, Inc. * | 36,830 | 1,954 | ||||||
NOW, Inc. * | 91,419 | 2,780 | ||||||
Oceaneering International, Inc. | 92,740 | 6,044 | ||||||
Oil States International, Inc. * | 46,247 | 2,863 | ||||||
Patterson-UTI Energy, Inc. | 125,169 | 4,072 | ||||||
Peabody Energy Corp. | 232,760 | 2,882 | ||||||
Rosetta Resources, Inc. * | 52,271 | 2,329 | ||||||
Rowan Cos. PLC, Class A | 106,181 | 2,687 | ||||||
SM Energy Co. | 57,708 | 4,501 | ||||||
Superior Energy Services, Inc. | 133,345 | 4,383 | ||||||
Tidewater, Inc. | 42,486 | 1,658 | ||||||
Unit Corp. * | 39,490 | 2,316 | ||||||
World Fuel Services Corp. | 62,532 | 2,496 | ||||||
WPX Energy, Inc. * | 174,122 | 4,189 | ||||||
74,623 | ||||||||
Passenger Transportation – 0.5% | ||||||||
Alaska Air Group, Inc. | 115,513 | 5,030 | ||||||
JetBlue Airways Corp. * | 209,903 | 2,229 | ||||||
7,259 | ||||||||
Real Estate – 0.5% | ||||||||
Alexander & Baldwin, Inc. | 39,050 | 1,404 | ||||||
Jones Lang LaSalle, Inc. | 38,450 | 4,858 | ||||||
6,262 | ||||||||
Real Estate Investment Trusts – 8.8% | ||||||||
Alexandria Real Estate Equities, Inc. | 61,672 | 4,548 | ||||||
American Campus Communities, Inc. | 89,354 | 3,257 | ||||||
BioMed Realty Trust, Inc. | 167,670 | 3,387 | ||||||
Camden Property Trust | 73,647 | 5,047 | ||||||
Corporate Office Properties Trust | 74,281 | 1,911 | ||||||
Corrections Corp. of America | 99,207 | 3,409 | ||||||
Duke Realty Corp. | 292,659 | 5,028 | ||||||
Equity One, Inc. | 66,243 | 1,433 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 70 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 98.2% – continued | ||||||||
Real Estate Investment Trusts – 8.8% – continued |
| |||||||
Extra Space Storage, Inc. | 94,747 | $4,886 | ||||||
Federal Realty Investment Trust | 57,874 | 6,856 | ||||||
Highwoods Properties, Inc. | 77,947 | 3,032 | ||||||
Home Properties, Inc. | 48,668 | 2,834 | ||||||
Hospitality Properties Trust | 129,302 | 3,472 | ||||||
Kilroy Realty Corp. | 71,232 | 4,234 | ||||||
LaSalle Hotel Properties | 88,655 | 3,036 | ||||||
Liberty Property Trust | 127,231 | 4,232 | ||||||
Mack-Cali Realty Corp. | 72,215 | 1,380 | ||||||
Mid-America Apartment Communities, Inc. | 64,663 | 4,245 | ||||||
National Retail Properties, Inc. | 107,268 | 3,708 | ||||||
Omega Healthcare Investors, Inc. | 109,199 | 3,734 | ||||||
Potlatch Corp. | 34,457 | 1,386 | ||||||
Rayonier, Inc. | 107,674 | 3,353 | ||||||
Rayonier, Inc. – (Fractional Shares) * | 50,000 | – | ||||||
Realty Income Corp. | 190,829 | 7,784 | ||||||
Regency Centers Corp. | 79,625 | 4,286 | ||||||
Senior Housing Properties Trust | 173,471 | 3,629 | ||||||
SL Green Realty Corp. | 81,864 | 8,294 | ||||||
Taubman Centers, Inc. | 54,568 | 3,983 | ||||||
UDR, Inc. | 215,927 | 5,884 | ||||||
Washington Prime Group, Inc. | 132,346 | 2,313 | ||||||
Weingarten Realty Investors | 95,820 | 3,018 | ||||||
117,599 | ||||||||
Recreational Facilities & Services – 0.6% |
| |||||||
Cinemark Holdings, Inc. | 88,694 | 3,019 | ||||||
International Speedway Corp., Class A | 23,494 | 743 | ||||||
Life Time Fitness, Inc. * | 30,730 | 1,550 | ||||||
Live Nation Entertainment, Inc. * | 123,809 | 2,974 | ||||||
8,286 | ||||||||
Renewable Energy – 0.3% | ||||||||
SunEdison, Inc. * | 214,330 | 4,047 | ||||||
Retail – Consumer Staples – 0.4% | ||||||||
Big Lots, Inc. | 48,342 | 2,081 | ||||||
CST Brands, Inc. | 64,272 | 2,311 | ||||||
SUPERVALU, Inc. * | 176,836 | 1,581 | ||||||
5,973 | ||||||||
Retail – Discretionary – 4.0% | ||||||||
Abercrombie & Fitch Co., Class A | 60,814 | 2,210 | ||||||
Advance Auto Parts, Inc. | 62,530 | 8,148 | ||||||
American Eagle Outfitters, Inc. | 150,075 | 2,179 | ||||||
ANN, Inc. * | 39,680 | 1,632 | ||||||
Ascena Retail Group, Inc. * | 112,610 | 1,498 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 98.2% – continued | ||||||||
Retail – Discretionary – 4.0% – continued |
| |||||||
Cabela’s, Inc. * | 40,868 | $2,407 | ||||||
Chico’s FAS, Inc. | 130,476 | 1,927 | ||||||
Copart, Inc. * | 97,425 | 3,051 | ||||||
Dick’s Sporting Goods, Inc. | 84,597 | 3,712 | ||||||
Foot Locker, Inc. | 123,018 | 6,846 | ||||||
Guess?, Inc. | 54,954 | 1,207 | ||||||
HSN, Inc. | 27,797 | 1,706 | ||||||
J.C. Penney Co., Inc. * | 259,120 | 2,601 | ||||||
Office Depot, Inc. * | 414,538 | 2,131 | ||||||
Signet Jewelers Ltd. | 68,800 | 7,837 | ||||||
Williams-Sonoma, Inc. | 75,303 | 5,013 | ||||||
54,105 | ||||||||
Semiconductors – 2.8% | ||||||||
Advanced Micro Devices, Inc. * | 533,448 | 1,819 | ||||||
Atmel Corp. * | 358,805 | 2,899 | ||||||
Cree, Inc. * | 102,631 | 4,203 | ||||||
Cypress Semiconductor Corp. * | 124,791 | 1,232 | ||||||
Fairchild Semiconductor International, Inc. * | 102,949 | 1,599 | ||||||
Integrated Device Technology, Inc. * | 127,681 | 2,037 | ||||||
International Rectifier Corp. * | 61,589 | 2,417 | ||||||
Intersil Corp., Class A | 109,660 | 1,558 | ||||||
RF Micro Devices, Inc. * | 248,067 | 2,863 | ||||||
Semtech Corp. * | 56,858 | 1,544 | ||||||
Silicon Laboratories, Inc. * | 35,048 | 1,424 | ||||||
Skyworks Solutions, Inc. | 162,477 | 9,432 | ||||||
Teradyne, Inc. | 176,689 | 3,426 | ||||||
Vishay Intertechnology, Inc. | 118,080 | 1,687 | ||||||
38,140 | ||||||||
Software – 4.2% | ||||||||
ACI Worldwide, Inc. * | 99,114 | 1,859 | ||||||
Acxiom Corp. * | 65,573 | 1,085 | ||||||
Advent Software, Inc. | 37,738 | 1,191 | ||||||
Allscripts Healthcare Solutions, Inc. * | 145,564 | 1,953 | ||||||
ANSYS, Inc. * | 78,950 | 5,974 | ||||||
Cadence Design Systems, Inc. * | 249,500 | 4,294 | ||||||
CommVault Systems, Inc. * | 36,555 | 1,842 | ||||||
Compuware Corp. | 187,398 | 1,988 | ||||||
Concur Technologies, Inc. * | 41,152 | 5,219 | ||||||
Informatica Corp. * | 95,039 | 3,254 | ||||||
Jack Henry & Associates, Inc. | 70,694 | 3,935 | ||||||
Mentor Graphics Corp. | 82,531 | 1,692 | ||||||
NeuStar, Inc., Class A * | 47,787 | 1,187 | ||||||
PTC, Inc. * | 101,122 | 3,731 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 71 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MID CAP INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 98.2% – continued | ||||||||
Software – 4.2% – continued | ||||||||
SolarWinds, Inc. * | 55,915 | $2,351 | ||||||
Solera Holdings, Inc. | 58,620 | 3,304 | ||||||
Synopsys, Inc. * | 133,654 | 5,305 | ||||||
TIBCO Software, Inc. * | 129,856 | 3,069 | ||||||
Ultimate Software Group, Inc. * | 24,210 | 3,426 | ||||||
56,659 | ||||||||
Specialty Finance – 1.3% | ||||||||
CoreLogic, Inc. * | 78,290 | 2,119 | ||||||
First American Financial Corp. | 91,074 | 2,470 | ||||||
GATX Corp. | 38,380 | 2,240 | ||||||
Global Payments, Inc. | 58,753 | 4,106 | ||||||
SLM Corp. | 360,294 | 3,084 | ||||||
WEX, Inc. * | 32,969 | 3,637 | ||||||
17,656 | ||||||||
Technology Services – 2.0% | ||||||||
Broadridge Financial Solutions, Inc. | 102,782 | 4,279 | ||||||
Convergys Corp. | 86,511 | 1,542 | ||||||
DST Systems, Inc. | 26,240 | 2,202 | ||||||
FactSet Research Systems, Inc. | 33,591 | 4,082 | ||||||
Fair Isaac Corp. | 27,362 | 1,508 | ||||||
Gartner, Inc. * | 76,146 | 5,594 | ||||||
Leidos Holdings, Inc. | 53,920 | 1,851 | ||||||
MSCI, Inc. * | 99,466 | 4,677 | ||||||
Science Applications International Corp. | 34,575 | 1,529 | ||||||
27,264 | ||||||||
Telecom – 1.5% | ||||||||
Equinix, Inc. * | 45,592 | 9,687 | ||||||
Rackspace Hosting, Inc. * | 101,786 | 3,313 | ||||||
Telephone & Data Systems, Inc. | 84,044 | 2,014 | ||||||
tw telecom, Inc. * | 118,733 | 4,941 | ||||||
19,955 | ||||||||
Transportation & Logistics – 1.9% | ||||||||
Con-way, Inc. | 49,564 | 2,354 | ||||||
Genesee & Wyoming, Inc., Class A * | 43,946 | 4,189 | ||||||
JB Hunt Transport Services, Inc. | 78,844 | 5,838 | ||||||
Kirby Corp. * | 48,935 | 5,767 | ||||||
Landstar System, Inc. | 38,313 | 2,766 | ||||||
Old Dominion Freight Line, Inc. * | 58,142 | 4,107 | ||||||
Werner Enterprises, Inc. | 38,969 | 982 | ||||||
26,003 | ||||||||
Transportation Equipment – 1.0% | ||||||||
Trinity Industries, Inc. | 133,670 | 6,245 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 98.2% – continued | ||||||||
Transportation Equipment – 1.0% – continued |
| |||||||
Wabtec Corp. | 82,785 | $6,709 | ||||||
12,954 | ||||||||
Utilities – 4.2% | ||||||||
Alliant Energy Corp. | 95,304 | 5,281 | ||||||
Aqua America, Inc. | 151,066 | 3,555 | ||||||
Atmos Energy Corp. | 86,342 | 4,118 | ||||||
Black Hills Corp. | 38,254 | 1,832 | ||||||
Cleco Corp. | 51,464 | 2,478 | ||||||
Great Plains Energy, Inc. | 133,169 | 3,219 | ||||||
Hawaiian Electric Industries, Inc. | 88,041 | 2,337 | ||||||
IDACORP, Inc. | 42,797 | 2,294 | ||||||
National Fuel Gas Co. | 72,210 | 5,054 | ||||||
OGE Energy Corp. | 171,115 | 6,350 | ||||||
ONE Gas, Inc. | 45,309 | 1,552 | ||||||
PNM Resources, Inc. | 67,388 | 1,679 | ||||||
Questar Corp. | 151,451 | 3,376 | ||||||
UGI Corp. | 148,459 | 5,061 | ||||||
Vectren Corp. | 70,197 | 2,801 | ||||||
Westar Energy, Inc. | 111,435 | 3,802 | ||||||
WGL Holdings, Inc. | 43,997 | 1,853 | ||||||
56,642 | ||||||||
Waste & Environment Services & Equipment – 1.1% |
| |||||||
CLARCOR, Inc. | 42,928 | 2,708 | ||||||
Clean Harbors, Inc. * | 47,132 | 2,541 | ||||||
Donaldson Co., Inc. | 114,047 | 4,634 | ||||||
Waste Connections, Inc. | 106,599 | 5,172 | ||||||
15,055 | ||||||||
Total Common Stocks | ||||||||
(Cost $985,423) | 1,318,940 | |||||||
INVESTMENT COMPANIES – 4.0% | ||||||||
Northern Institutional Funds – Diversified Assets Portfolio, 0.01% (2)(3) | 53,689,830 | 53,690 | ||||||
Total Investment Companies | ||||||||
(Cost $53,690) | 53,690 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 72 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
SHORT-TERM INVESTMENTS – 0.2% | ||||||||
U.S. Treasury Bill, | ||||||||
0.04%, 10/2/14 (4) | $2,660 | $2,660 | ||||||
0.03%, 4/30/15 (4) | 155 | 155 | ||||||
Total Short-Term Investments | ||||||||
(Cost $2,815) | 2,815 | |||||||
Total Investments – 102.4% | ||||||||
(Cost $1,041,928) | 1,375,445 | |||||||
Liabilities less Other Assets – (2.4)% |
| (32,641 | ) | |||||
NET ASSETS – 100.0% | $1,342,804 |
(1) | Level 3 asset that is worthless, bankrupt or has been delisted. |
(2) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
(3) | At March 31, 2014, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $23,834,000 with net purchases of approximately $29,856,000 during the six months ended September 30, 2014. |
(4) | Security pledged as collateral to cover margin requirements for open futures contracts. |
* | Non-Income Producing Security |
Percentages shown are based on Net Assets.
At September 30, 2014, the Fund had open futures contracts as follows:
TYPE | NUMBER OF CONTRACTS | NOTIONAL AMOUNT (000s) | CONTRACT POSITION | CONTRACT EXP. | UNREALIZED GAINS (LOSSES) (000s) | |||||||||||||||
E-Mini S&P MidCap 400 | 176 | $24,031 | Long | 12/14 | $(883) |
At September 30, 2014, the industry sectors for the Fund were :
INDUSTRY SECTOR | % OF LONG-TERM INVESTMENTS | |||
Consumer Discretionary | 13.7% | |||
Consumer Staples | 3.2 | |||
Energy | 5.3 | |||
Financials | 22.2 | |||
Health Care | 9.7 | |||
Industrials | 16.1 | |||
Information Technology | 17.2 | |||
Materials | 7.5 | |||
Telecommunication Services | 0.5 | |||
Utilities | 4.6 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Common Stocks | $1,318,940 | (1) | $ – | $– | $1,318,940 | |||||||||||
Investment Companies | 53,690 | – | – | 53,690 | ||||||||||||
Short-Term Investments | – | 2,815 | – | 2,815 | ||||||||||||
Total Investments | $1,372,630 | $2,815 | $– | $1,375,445 | ||||||||||||
OTHER FINANCIAL INSTRUMENTS |
| |||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (883) | $ – | $– | $ | (883) |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 73 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SMALL CAP INDEX FUND
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% | ||||||||
Aerospace & Defense – 1.5% |
| |||||||
AAR Corp. | 21,613 | $522 | ||||||
Aerovironment, Inc. * | 10,387 | 312 | ||||||
Astronics Corp. * | 8,550 | 408 | ||||||
Astronics Corp., Class B * | 1,729 | 82 | ||||||
Ducommun, Inc. * | 5,867 | 161 | ||||||
Erickson, Inc. * | 3,348 | 43 | ||||||
Esterline Technologies Corp. * | 17,431 | 1,940 | ||||||
GenCorp, Inc. * | 32,667 | 522 | ||||||
HEICO Corp. | 36,381 | 1,699 | ||||||
LMI Aerospace, Inc. * | 5,829 | 75 | ||||||
Moog, Inc., Class A * | 24,360 | 1,666 | ||||||
National Presto Industries, Inc. | 2,667 | 162 | ||||||
Orbital Sciences Corp. * | 33,144 | 921 | ||||||
SIFCO Industries, Inc. | 1,397 | 42 | ||||||
Smith & Wesson Holding Corp. * | 30,279 | 286 | ||||||
Sturm Ruger & Co., Inc. | 10,589 | 516 | ||||||
Taser International, Inc. * | 29,369 | 453 | ||||||
Teledyne Technologies, Inc. * | 20,583 | 1,935 | ||||||
Woodward, Inc. | 36,296 | 1,728 | ||||||
13,473 | ||||||||
Apparel & Textile Products – 1.1% |
| |||||||
Albany International Corp., Class A | 15,372 | 523 | ||||||
Columbia Sportswear Co. | 15,017 | 537 | ||||||
Crocs, Inc. * | 47,865 | 602 | ||||||
Culp, Inc. | 4,745 | 86 | ||||||
G-III Apparel Group Ltd. * | 10,485 | 869 | ||||||
Iconix Brand Group, Inc. * | 25,099 | 927 | ||||||
Movado Group, Inc. | 10,002 | 331 | ||||||
Oxford Industries, Inc. | 7,935 | 484 | ||||||
Perry Ellis International, Inc. * | 6,706 | 136 | ||||||
Quiksilver, Inc. * | 74,319 | 128 | ||||||
Sequential Brands Group, Inc. * | 9,302 | 116 | ||||||
Skechers U.S.A., Inc., Class A * | 21,396 | 1,141 | ||||||
Steven Madden Ltd. * | 31,896 | 1,028 | ||||||
Tumi Holdings, Inc. * | 27,667 | 563 | ||||||
Unifi, Inc. * | 8,082 | 209 | ||||||
Vera Bradley, Inc. * | 12,018 | 249 | ||||||
Vince Holding Corp. * | 6,157 | 186 | ||||||
Weyco Group, Inc. | 3,570 | 90 | ||||||
Wolverine World Wide, Inc. | 55,502 | 1,391 | ||||||
9,596 | ||||||||
Asset Management – 0.8% |
| |||||||
Acacia Research Corp. | 27,288 | 422 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Asset Management – 0.8% – continued |
| |||||||
Altisource Asset Management Corp. * | 770 | $520 | ||||||
Caesars Acquisition Co., Class A * | 25,206 | 239 | ||||||
Calamos Asset Management, Inc., Class A | 9,118 | 103 | ||||||
Cohen & Steers, Inc. | 10,560 | 406 | ||||||
Diamond Hill Investment Group, Inc. | 1,562 | 192 | ||||||
FCB Financial Holdings, Inc., Class A * | 4,501 | 102 | ||||||
Financial Engines, Inc. | 28,152 | 963 | ||||||
GAMCO Investors, Inc., Class A | 3,538 | 250 | ||||||
Home Loan Servicing Solutions Ltd. | 38,900 | 824 | ||||||
Janus Capital Group, Inc. | 81,870 | 1,190 | ||||||
Ladenburg Thalmann Financial Services, Inc. * | 55,069 | 234 | ||||||
Manning & Napier, Inc. | 7,458 | 125 | ||||||
Oppenheimer Holdings, Inc., Class A | 5,470 | 111 | ||||||
Pzena Investment Management, Inc., Class A | 6,433 | 62 | ||||||
Safeguard Scientifics, Inc. * | 11,380 | 209 | ||||||
Silvercrest Asset Management Group, Inc., Class A | 3,063 | 42 | ||||||
Virtus Investment Partners, Inc. | 3,870 | 672 | ||||||
Westwood Holdings Group, Inc. | 4,039 | 229 | ||||||
WisdomTree Investments, Inc. * | 58,878 | 670 | ||||||
7,565 | ||||||||
Automotive – 1.3% |
| |||||||
Actuant Corp., Class A | 38,949 | 1,189 | ||||||
American Axle & Manufacturing Holdings, Inc. * | 37,016 | 621 | ||||||
Cooper Tire & Rubber Co. | 34,763 | 998 | ||||||
Cooper-Standard Holding, Inc. * | 7,466 | 466 | ||||||
Dana Holding Corp. | 85,880 | 1,646 | ||||||
Dorman Products, Inc. * | 14,775 | 592 | ||||||
Federal-Mogul Holdings Corp. * | 15,897 | 236 | ||||||
Fuel Systems Solutions, Inc. * | 7,626 | 68 | ||||||
Gentherm, Inc. * | 19,306 | 815 | ||||||
Methode Electronics, Inc. | 20,728 | 764 | ||||||
Miller Industries, Inc. | 6,287 | 106 | ||||||
Modine Manufacturing Co. * | 25,879 | 307 | ||||||
Motorcar Parts of America, Inc. * | 9,756 | 265 | ||||||
Remy International, Inc. | 7,818 | 161 | ||||||
Standard Motor Products, Inc. | 10,776 | 371 | ||||||
Strattec Security Corp. | 1,911 | 155 | ||||||
Superior Industries International, Inc. | 13,034 | 229 | ||||||
Tenneco, Inc. * | 33,372 | 1,746 | ||||||
Tower International, Inc. * | 11,172 | 281 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 74 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Automotive – 1.3% – continued |
| |||||||
TriMas Corp. * | 24,728 | $602 | ||||||
11,618 | ||||||||
Banking – 8.5% |
| |||||||
1st Source Corp. | 8,282 | 236 | ||||||
1st United Bancorp, Inc. | 16,268 | 139 | ||||||
American National Bankshares, Inc. | 4,303 | 98 | ||||||
Ameris Bancorp | 13,651 | 300 | ||||||
Ames National Corp. | 4,557 | 102 | ||||||
Arrow Financial Corp. | 6,029 | 151 | ||||||
Astoria Financial Corp. | 47,354 | 587 | ||||||
Banc of California, Inc. | 15,165 | 176 | ||||||
BancFirst Corp. | 3,933 | 246 | ||||||
Banco Latinoamericano de Comercio Exterior S.A., Class E | 16,211 | 497 | ||||||
Bancorp (The), Inc. * | 18,220 | 156 | ||||||
BancorpSouth, Inc. | 52,559 | 1,059 | ||||||
Bank Mutual Corp. | 25,691 | 165 | ||||||
Bank of Kentucky Financial (The) Corp. | 3,393 | 157 | ||||||
Bank of Marin Bancorp | 3,252 | 149 | ||||||
Bank of the Ozarks, Inc. | 43,613 | 1,375 | ||||||
BankFinancial Corp. | 10,266 | 107 | ||||||
Banner Corp. | 10,658 | 410 | ||||||
BBCN Bancorp, Inc. | 43,465 | 634 | ||||||
Beneficial Mutual Bancorp, Inc. * | 16,186 | 207 | ||||||
Berkshire Hills Bancorp, Inc. | 13,656 | 321 | ||||||
Blue Hills Bancorp, Inc. * | 15,581 | 204 | ||||||
BNC Bancorp | 11,001 | 172 | ||||||
BofI Holding, Inc. * | 7,756 | 564 | ||||||
Boston Private Financial Holdings, Inc. | 43,678 | 541 | ||||||
Bridge Bancorp, Inc. | 6,373 | 151 | ||||||
Bridge Capital Holdings * | 5,415 | 123 | ||||||
Brookline Bancorp, Inc. | 38,920 | 333 | ||||||
Bryn Mawr Bank Corp. | 7,538 | 214 | ||||||
C1 Financial, Inc. * | 1,755 | 32 | ||||||
Camden National Corp. | 4,093 | 143 | ||||||
Capital Bank Financial Corp., Class A * | 13,153 | 314 | ||||||
Capital City Bank Group, Inc. | 5,887 | 80 | ||||||
Capitol Federal Financial, Inc. | 78,457 | 927 | ||||||
Cardinal Financial Corp. | 17,609 | 301 | ||||||
Cascade Bancorp * | 16,406 | 83 | ||||||
Cathay General Bancorp | 43,569 | 1,082 | ||||||
Centerstate Banks, Inc. | 19,585 | 203 | ||||||
Central Pacific Financial Corp. | 9,427 | 169 | ||||||
Century Bancorp, Inc., Class A | 1,829 | 63 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Banking – 8.5% – continued |
| |||||||
Charter Financial Corp. | 10,443 | $112 | ||||||
Chemical Financial Corp. | 17,881 | 481 | ||||||
Citizens & Northern Corp. | 6,822 | 130 | ||||||
City Holding Co. | 8,536 | 360 | ||||||
Clifton Bancorp, Inc. | 14,548 | 183 | ||||||
CNB Financial Corp. | 7,954 | 125 | ||||||
CoBiz Financial, Inc. | 19,767 | 221 | ||||||
Columbia Banking System, Inc. | 28,761 | 714 | ||||||
Community Bank System, Inc. | 22,210 | 746 | ||||||
Community Trust Bancorp, Inc. | 8,473 | 285 | ||||||
CommunityOne Bancorp * | 6,396 | 56 | ||||||
ConnectOne Bancorp, Inc. | 12,447 | 237 | ||||||
CU Bancorp * | 5,497 | 103 | ||||||
Customers Bancorp, Inc. * | 14,066 | 253 | ||||||
CVB Financial Corp. | 57,879 | 831 | ||||||
Dime Community Bancshares, Inc. | 18,100 | 261 | ||||||
Eagle Bancorp, Inc. * | 12,390 | 394 | ||||||
Enterprise Bancorp, Inc. | 4,067 | 77 | ||||||
Enterprise Financial Services Corp. | 10,488 | 175 | ||||||
ESB Financial Corp. | 7,212 | 84 | ||||||
EverBank Financial Corp. | 49,824 | 880 | ||||||
Fidelity Southern Corp. | 9,136 | 125 | ||||||
Financial Institutions, Inc. | 7,638 | 172 | ||||||
First BanCorp * | 56,421 | 268 | ||||||
First Bancorp | 10,872 | 174 | ||||||
First Bancorp, Inc. | 5,359 | 89 | ||||||
First Busey Corp. | 40,008 | 223 | ||||||
First Business Financial Services, Inc. | 2,168 | 95 | ||||||
First Citizens BancShares, Inc., Class A | 4,138 | 896 | ||||||
First Commonwealth Financial Corp. | 51,196 | 430 | ||||||
First Community Bancshares, Inc. | 9,090 | 130 | ||||||
First Connecticut Bancorp, Inc. | 8,927 | 129 | ||||||
First Defiance Financial Corp. | 5,332 | 144 | ||||||
First Financial Bancorp | 31,348 | 496 | ||||||
First Financial Bankshares, Inc. | 35,015 | 973 | ||||||
First Financial Corp. | 6,280 | 194 | ||||||
First Financial Northwest, Inc. | 8,060 | 82 | ||||||
First Interstate BancSystem, Inc. | 9,971 | 265 | ||||||
First Merchants Corp. | 19,624 | 397 | ||||||
First Midwest Bancorp, Inc. | 41,190 | 663 | ||||||
First NBC Bank Holding Co. * | 8,224 | 269 | ||||||
First of Long Island (The) Corp. | 4,403 | 152 | ||||||
FirstMerit Corp. | 90,570 | 1,594 | ||||||
Flushing Financial Corp. | 16,688 | 305 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 75 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SMALL CAP INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Banking – 8.5% – continued |
| |||||||
FNB Corp. | 95,189 | $1,141 | ||||||
Fox Chase Bancorp, Inc. | 6,598 | 108 | ||||||
Franklin Financial Corp. * | 5,354 | 100 | ||||||
German American Bancorp, Inc. | 7,089 | 183 | ||||||
Glacier Bancorp, Inc. | 40,764 | 1,054 | ||||||
Great Southern Bancorp, Inc. | 5,716 | 173 | ||||||
Green Bancorp, Inc. * | 2,538 | 44 | ||||||
Guaranty Bancorp | 8,096 | 109 | ||||||
Hampton Roads Bankshares, Inc. * | 18,964 | 29 | ||||||
Hancock Holding Co. | 45,130 | 1,446 | ||||||
Hanmi Financial Corp. | 17,306 | 349 | ||||||
Heartland Financial USA, Inc. | 8,484 | 203 | ||||||
Heritage Commerce Corp. | 11,521 | 95 | ||||||
Heritage Financial Corp. | 16,395 | 260 | ||||||
Heritage Oaks Bancorp | 12,271 | 86 | ||||||
Home BancShares, Inc. | 29,620 | 871 | ||||||
HomeTrust Bancshares, Inc. * | 11,467 | 168 | ||||||
Horizon Bancorp | 5,074 | 117 | ||||||
Hudson Valley Holding Corp. | 8,133 | 148 | ||||||
Iberiabank Corp. | 17,225 | 1,077 | ||||||
Independent Bank Corp. | 13,029 | 465 | ||||||
Independent Bank Corp. | 12,614 | 150 | ||||||
Independent Bank Group, Inc. | 5,037 | 239 | ||||||
International Bancshares Corp. | 29,692 | 732 | ||||||
Investors Bancorp, Inc. | 196,627 | 1,992 | ||||||
Kearny Financial Corp. * | 7,738 | 103 | ||||||
Lakeland Bancorp, Inc. | 20,947 | 204 | ||||||
Lakeland Financial Corp. | 9,103 | 341 | ||||||
Macatawa Bank Corp. | 14,413 | 69 | ||||||
MainSource Financial Group, Inc. | 10,987 | 189 | ||||||
MB Financial, Inc. | 36,332 | 1,006 | ||||||
Mercantile Bank Corp. | 9,267 | 177 | ||||||
Merchants Bancshares, Inc. | 2,836 | 80 | ||||||
Meridian Bancorp, Inc. * | 11,216 | 118 | ||||||
Metro Bancorp, Inc. * | 7,815 | 189 | ||||||
MidSouth Bancorp, Inc. | 4,525 | 85 | ||||||
MidWestOne Financial Group, Inc. | 3,789 | 87 | ||||||
National Bank Holdings Corp., Class A | 22,426 | 429 | ||||||
National Bankshares, Inc. | 3,833 | 106 | ||||||
National Penn Bancshares, Inc. | 64,263 | 624 | ||||||
NBT Bancorp, Inc. | 23,680 | 533 | ||||||
NewBridge Bancorp * | 18,519 | 141 | ||||||
Northfield Bancorp, Inc. | 29,131 | 397 | ||||||
Northrim BanCorp, Inc. | 3,725 | 98 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Banking – 8.5% – continued |
| |||||||
Northwest Bancshares, Inc. | 51,774 | $626 | ||||||
OceanFirst Financial Corp. | 7,389 | 118 | ||||||
OFG Bancorp | 24,467 | 366 | ||||||
Old Line Bancshares, Inc. | 4,614 | 71 | ||||||
Old National Bancorp | 62,812 | 815 | ||||||
OmniAmerican Bancorp, Inc. | 6,349 | 165 | ||||||
Opus Bank * | 2,823 | 86 | ||||||
Oritani Financial Corp. | 24,878 | 351 | ||||||
Pacific Continental Corp. | 9,801 | 126 | ||||||
Pacific Premier Bancorp, Inc. * | 9,463 | 133 | ||||||
Palmetto Bancshares, Inc. | 2,505 | 35 | ||||||
Park National Corp. | 6,948 | 524 | ||||||
Park Sterling Corp. | 24,690 | 164 | ||||||
Peapack Gladstone Financial Corp. | 6,572 | 115 | ||||||
Penns Woods Bancorp, Inc. | 2,657 | 112 | ||||||
Peoples Bancorp, Inc. | 6,006 | 143 | ||||||
Peoples Financial Services Corp. | 4,159 | 191 | ||||||
Pinnacle Financial Partners, Inc. | 19,457 | 702 | ||||||
Preferred Bank | 6,469 | 146 | ||||||
PrivateBancorp, Inc. | 39,231 | 1,173 | ||||||
Prosperity Bancshares, Inc. | 38,237 | 2,186 | ||||||
Provident Financial Services, Inc. | 32,930 | 539 | ||||||
Renasant Corp. | 17,154 | 464 | ||||||
Republic Bancorp, Inc., Class A | 5,428 | 129 | ||||||
Republic First Bancorp, Inc. * | 17,041 | 66 | ||||||
S&T Bancorp, Inc. | 16,122 | 378 | ||||||
Sandy Spring Bancorp, Inc. | 13,570 | 311 | ||||||
Seacoast Banking Corp. of Florida * | 10,654 | 116 | ||||||
ServisFirst Bancshares, Inc. | 1,032 | 30 | ||||||
Sierra Bancorp | 6,709 | 112 | ||||||
Simmons First National Corp., Class A | 8,864 | 341 | ||||||
South State Corp. | 13,183 | 737 | ||||||
Southside Bancshares, Inc. | 10,220 | 340 | ||||||
Southwest Bancorp, Inc. | 10,909 | 179 | ||||||
Square 1 Financial, Inc. Class A * | 3,731 | 72 | ||||||
State Bank Financial Corp. | 17,711 | 288 | ||||||
Sterling Bancorp | 45,614 | 583 | ||||||
Stock Yards Bancorp, Inc. | 8,091 | 244 | ||||||
Stonegate Bank | 5,483 | 141 | ||||||
Suffolk Bancorp | 6,383 | 124 | ||||||
Sun Bancorp, Inc. * | 4,698 | 85 | ||||||
Susquehanna Bancshares, Inc. | 102,816 | 1,028 | ||||||
Talmer Bancorp, Inc. Class A | 9,870 | 136 | ||||||
Territorial Bancorp, Inc. | 4,805 | 97 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 76 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Banking – 8.5% – continued |
| |||||||
Texas Capital Bancshares, Inc. * | 23,582 | $1,360 | ||||||
Tompkins Financial Corp. | 8,054 | 355 | ||||||
Towne Bank | 15,950 | 217 | ||||||
Trico Bancshares | 8,886 | 201 | ||||||
TriState Capital Holdings, Inc. * | 12,171 | 110 | ||||||
TrustCo Bank Corp. NY | 51,393 | 331 | ||||||
Trustmark Corp. | 36,967 | 852 | ||||||
UMB Financial Corp. | 20,654 | 1,127 | ||||||
Umpqua Holdings Corp. | 91,257 | 1,503 | ||||||
Union Bankshares Corp. | 25,278 | 584 | ||||||
United Bankshares, Inc. | 37,781 | 1,169 | ||||||
United Community Banks, Inc. | 27,244 | 448 | ||||||
United Community Financial Corp. | 27,115 | 127 | ||||||
United Financial Bancorp, Inc. | 28,643 | 363 | ||||||
Univest Corp. of Pennsylvania | 8,971 | 168 | ||||||
Valley National Bancorp | 109,972 | 1,066 | ||||||
ViewPoint Financial Group, Inc. | 21,778 | 521 | ||||||
Washington Federal, Inc. | 55,500 | 1,130 | ||||||
Washington Trust Bancorp, Inc. | 8,103 | 267 | ||||||
Waterstone Financial, Inc. | 18,932 | 219 | ||||||
Webster Financial Corp. | 49,517 | 1,443 | ||||||
WesBanco, Inc. | 14,247 | 436 | ||||||
West Bancorporation, Inc. | 8,815 | 125 | ||||||
Westamerica Bancorporation | 14,382 | 669 | ||||||
Western Alliance Bancorp * | 41,330 | 988 | ||||||
Wilshire Bancorp, Inc. | 38,180 | 352 | ||||||
Wintrust Financial Corp. | 25,492 | 1,139 | ||||||
WSFS Financial Corp. | 4,837 | 346 | ||||||
Yadkin Financial Corp. * | 11,221 | 204 | ||||||
76,967 | ||||||||
Biotechnology & Pharmaceuticals – 6.3% |
| |||||||
ACADIA Pharmaceuticals, Inc. * | 43,134 | 1,068 | ||||||
Acceleron Pharma, Inc. * | 9,063 | 274 | ||||||
AcelRx Pharmaceuticals, Inc. * | 13,677 | 75 | ||||||
Aceto Corp. | 15,832 | 306 | ||||||
Achaogen, Inc. * | 3,801 | 34 | ||||||
Achillion Pharmaceuticals, Inc. * | 52,891 | 528 | ||||||
Acorda Therapeutics, Inc. * | 22,749 | 771 | ||||||
Actinium Pharmaceuticals, Inc. * | 11,704 | 78 | ||||||
Adamas Pharmaceuticals, Inc. * | 1,600 | 30 | ||||||
Aegerion Pharmaceuticals, Inc. * | 16,093 | 537 | ||||||
Aerie Pharmaceuticals, Inc. * | 5,786 | 120 | ||||||
Agenus, Inc. * | 34,247 | 107 | ||||||
Agios Pharmaceuticals, Inc. * | 7,401 | 454 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Biotechnology & Pharmaceuticals – 6.3% – continued |
| |||||||
Akebia Therapeutics, Inc. * | 4,311 | $95 | ||||||
Akorn, Inc. * | 34,112 | 1,237 | ||||||
Albany Molecular Research, Inc. * | 12,976 | 286 | ||||||
Alder Biopharmaceuticals, Inc. * | 4,401 | 56 | ||||||
Alimera Sciences, Inc. * | 14,437 | 78 | ||||||
AMAG Pharmaceuticals, Inc. * | 12,063 | 385 | ||||||
Amphastar Pharmaceuticals, Inc. * | 5,014 | 58 | ||||||
Ampio Pharmaceuticals, Inc. * | 22,551 | 80 | ||||||
Anacor Pharmaceuticals, Inc. * | 17,942 | 439 | ||||||
ANI Pharmaceuticals, Inc. * | 3,788 | 107 | ||||||
Anika Therapeutics, Inc. * | 7,946 | 291 | ||||||
Antares Pharma, Inc. * | 64,206 | 118 | ||||||
Applied Genetic Technologies Corp. * | 3,077 | 57 | ||||||
Aratana Therapeutics, Inc. * | 15,672 | 157 | ||||||
Ardelyx, Inc. * | 2,673 | 38 | ||||||
Arena Pharmaceuticals, Inc. * | 119,824 | 502 | ||||||
ARIAD Pharmaceuticals, Inc. * | 89,959 | 486 | ||||||
Array BioPharma, Inc. * | 69,320 | 247 | ||||||
Arrowhead Research Corp. * | 28,256 | 417 | ||||||
Auspex Pharmaceuticals, Inc. * | 5,082 | 130 | ||||||
Auxilium Pharmaceuticals, Inc. * | 27,506 | 821 | ||||||
Avalanche Biotechnologies, Inc. * | 3,773 | 129 | ||||||
AVANIR Pharmaceuticals, Inc. * | 93,628 | 1,116 | ||||||
BioCryst Pharmaceuticals, Inc. * | 38,132 | 373 | ||||||
BioDelivery Sciences International, Inc. * | 22,773 | 389 | ||||||
Bio-Path Holdings, Inc. * | 40,443 | 81 | ||||||
BioSpecifics Technologies Corp. * | 1,978 | 70 | ||||||
BioTime, Inc. * | 28,623 | 90 | ||||||
Bluebird Bio, Inc. * | 11,963 | 429 | ||||||
Cambrex Corp. * | 16,617 | 310 | ||||||
Cara Therapeutics, Inc. * | 3,062 | 26 | ||||||
Celldex Therapeutics, Inc. * | 48,894 | 634 | ||||||
Cellular Dynamics International, Inc. * | 5,342 | 38 | ||||||
Cempra, Inc. * | 12,602 | 138 | ||||||
ChemoCentryx, Inc. * | 15,056 | 68 | ||||||
Chimerix, Inc. * | 14,680 | 405 | ||||||
Clovis Oncology, Inc. * | 13,481 | 612 | ||||||
Corcept Therapeutics, Inc. * | 28,282 | 76 | ||||||
CTI BioPharma Corp. * | 73,973 | 179 | ||||||
Cytokinetics, Inc. * | 19,448 | 68 | ||||||
CytRx Corp. * | 30,727 | 78 | ||||||
Dendreon Corp. * | 87,831 | 127 | ||||||
Depomed, Inc. * | 31,858 | 484 | ||||||
Dicerna Pharmaceuticals, Inc. * | 1,996 | 25 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 77 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SMALL CAP INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Biotechnology & Pharmaceuticals – 6.3% – continued |
| |||||||
Durata Therapeutics, Inc. * | 8,547 | $108 | ||||||
Dyax Corp. * | 74,313 | 752 | ||||||
Dynavax Technologies Corp. * | 144,700 | 207 | ||||||
Egalet Corp. * | 2,218 | 13 | ||||||
Eleven Biotherapeutics, Inc. * | 2,587 | 29 | ||||||
Emergent Biosolutions, Inc. * | 15,866 | 338 | ||||||
Enanta Pharmaceuticals, Inc. * | 5,694 | 225 | ||||||
Endocyte, Inc. * | 20,421 | 124 | ||||||
Epizyme, Inc. * | 7,054 | 191 | ||||||
Esperion Therapeutics, Inc. * | 2,545 | 62 | ||||||
Exelixis, Inc. * | 107,263 | 164 | ||||||
Five Prime Therapeutics, Inc. * | 9,491 | 111 | ||||||
Flexion Therapeutics, Inc. * | 2,569 | 47 | ||||||
Furiex Pharmaceuticals, Inc. (1)* | 3,926 | – | ||||||
Galectin Therapeutics, Inc. * | 9,922 | 50 | ||||||
Galena Biopharma, Inc. * | 65,033 | 134 | ||||||
Genocea Biosciences, Inc. * | 2,208 | 20 | ||||||
Geron Corp. | 86,381 | 173 | ||||||
Halozyme Therapeutics, Inc. * | 56,454 | 514 | ||||||
Heron Therapeutics, Inc. * | 12,692 | 106 | ||||||
Horizon Pharma PLC * | 35,452 | 435 | ||||||
Hyperion Therapeutics, Inc. * | 7,496 | 189 | ||||||
Idera Pharmaceuticals, Inc. * | 33,163 | 76 | ||||||
Immune Design Corp. * | 3,316 | 59 | ||||||
ImmunoGen, Inc. * | 46,773 | 495 | ||||||
Immunomedics, Inc. * | 44,436 | 165 | ||||||
Impax Laboratories, Inc. * | 38,331 | 909 | ||||||
Infinity Pharmaceuticals, Inc. * | 26,380 | 354 | ||||||
Inovio Pharmaceuticals, Inc. * | 32,652 | 322 | ||||||
Insmed, Inc. * | 26,895 | 351 | ||||||
Insys Therapeutics, Inc. * | 5,504 | 213 | ||||||
Intersect ENT, Inc. * | 3,170 | 49 | ||||||
Intra-Cellular Therapies, Inc. * | 9,422 | 129 | ||||||
Intrexon Corp. * | 19,378 | 360 | ||||||
Ironwood Pharmaceuticals, Inc. * | 65,390 | 847 | ||||||
Isis Pharmaceuticals, Inc. * | 64,351 | 2,499 | ||||||
Karyopharm Therapeutics, Inc. * | 7,421 | 259 | ||||||
Keryx Biopharmaceuticals, Inc. * | 50,015 | 688 | ||||||
Kindred Biosciences, Inc. * | 5,886 | 54 | ||||||
Kite Pharma, Inc. * | 4,713 | 134 | ||||||
KYTHERA Biopharmaceuticals, Inc. * | 9,435 | 309 | ||||||
Lannett Co., Inc. * | 14,061 | 642 | ||||||
Lexicon Pharmaceuticals, Inc. * | 125,878 | 178 | ||||||
Ligand Pharmaceuticals, Inc. * | 11,315 | 532 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Biotechnology & Pharmaceuticals – 6.3% – continued |
| |||||||
Loxo Oncology, Inc. * | 1,947 | $26 | ||||||
MacroGenics, Inc. * | 11,005 | 230 | ||||||
MannKind Corp. * | 124,803 | 738 | ||||||
Medicines (The) Co. * | 35,565 | 794 | ||||||
Merrimack Pharmaceuticals, Inc. * | 53,462 | 469 | ||||||
Mirati Therapeutics, Inc. * | 3,950 | 69 | ||||||
Momenta Pharmaceuticals, Inc. * | 26,027 | 295 | ||||||
NanoViricides, Inc. * | 22,077 | 66 | ||||||
Nature’s Sunshine Products, Inc. | 5,978 | 89 | ||||||
Nektar Therapeutics * | 69,467 | 838 | ||||||
Neuralstem, Inc. * | 37,876 | 124 | ||||||
Neurocrine Biosciences, Inc. * | 41,481 | 650 | ||||||
NewLink Genetics Corp. * | 10,911 | 234 | ||||||
Northwest Biotherapeutics, Inc. * | 19,574 | 98 | ||||||
Novavax, Inc. * | 129,610 | 541 | ||||||
NPS Pharmaceuticals, Inc. * | 58,190 | 1,513 | ||||||
Nutraceutical International Corp. * | 4,729 | 99 | ||||||
Ohr Pharmaceutical, Inc. * | 11,586 | 84 | ||||||
Omega Protein Corp. * | 11,474 | 143 | ||||||
Omeros Corp. * | 18,686 | 238 | ||||||
OncoMed Pharmaceuticals, Inc. * | 6,957 | 132 | ||||||
Oncothyreon, Inc. * | 44,007 | 85 | ||||||
Ophthotech Corp. * | 7,641 | 297 | ||||||
Orexigen Therapeutics, Inc. * | 67,061 | 286 | ||||||
Organovo Holdings, Inc. * | 34,432 | 219 | ||||||
Osiris Therapeutics, Inc. * | 10,445 | 132 | ||||||
Otonomy, Inc. * | 3,928 | 94 | ||||||
Pacira Pharmaceuticals, Inc. * | 19,511 | 1,891 | ||||||
Pain Therapeutics, Inc. * | 20,949 | 82 | ||||||
PDL BioPharma, Inc. | 87,803 | 656 | ||||||
Peregrine Pharmaceuticals, Inc. * | 96,893 | 132 | ||||||
Pernix Therapeutics Holdings, Inc. * | 18,335 | 141 | ||||||
Phibro Animal Health Corp., Class A | 8,072 | 181 | ||||||
Portola Pharmaceuticals, Inc. * | 20,129 | 509 | ||||||
POZEN, Inc. * | 14,889 | 109 | ||||||
Prestige Brands Holdings, Inc. * | 28,347 | 918 | ||||||
Progenics Pharmaceuticals, Inc. * | 38,194 | 198 | ||||||
Prothena Corp. PLC * | 14,582 | 323 | ||||||
PTC Therapeutics, Inc. * | 12,128 | 534 | ||||||
Puma Biotechnology, Inc. * | 12,707 | 3,032 | ||||||
Radius Health, Inc. * | 3,833 | 81 | ||||||
Raptor Pharmaceutical Corp. * | 34,043 | 326 | ||||||
Receptos, Inc. * | 10,105 | 628 | ||||||
Regado Biosciences, Inc. * | 8,499 | 10 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 78 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Biotechnology & Pharmaceuticals – 6.3% – continued |
| |||||||
Regulus Therapeutics, Inc. * | 7,555 | $52 | ||||||
Relypsa, Inc. * | 9,319 | 197 | ||||||
Repligen Corp. * | 17,387 | 346 | ||||||
Repros Therapeutics, Inc. * | 12,734 | 126 | ||||||
Retrophin, Inc. * | 11,717 | 106 | ||||||
Revance Therapeutics, Inc. * | 4,687 | 91 | ||||||
Rigel Pharmaceuticals, Inc. * | 48,215 | 94 | ||||||
Roka Bioscience, Inc. * | 2,670 | 27 | ||||||
Sage Therapeutics, Inc. * | 3,133 | 99 | ||||||
Sagent Pharmaceuticals, Inc. * | 11,886 | 370 | ||||||
Sangamo BioSciences, Inc. * | 37,014 | 399 | ||||||
Sarepta Therapeutics, Inc. * | 22,190 | 468 | ||||||
SciClone Pharmaceuticals, Inc. * | 28,368 | 195 | ||||||
Spectrum Pharmaceuticals, Inc. * | 36,054 | 294 | ||||||
Stemline Therapeutics, Inc. * | 6,361 | 79 | ||||||
Sucampo Pharmaceuticals, Inc., Class A * | 9,768 | 64 | ||||||
Sunesis Pharmaceuticals, Inc. * | 27,243 | 195 | ||||||
Supernus Pharmaceuticals, Inc. * | 16,135 | 140 | ||||||
Synageva BioPharma Corp. * | 11,707 | 805 | ||||||
Synergy Pharmaceuticals, Inc. | 51,620 | 144 | ||||||
Synta Pharmaceuticals Corp. * | 35,397 | 107 | ||||||
Synutra International, Inc. * | 9,760 | 44 | ||||||
T2 Biosystems, Inc. * | 3,254 | 59 | ||||||
TESARO, Inc. * | 10,620 | 286 | ||||||
Tetraphase Pharmaceuticals, Inc. * | 12,150 | 242 | ||||||
TG Therapeutics, Inc. * | 12,938 | 138 | ||||||
TherapeuticsMD, Inc. * | 58,904 | 273 | ||||||
Theravance Biopharma, Inc. * | 12,965 | 299 | ||||||
Theravance, Inc. | 45,035 | 770 | ||||||
Threshold Pharmaceuticals, Inc. * | 28,646 | 103 | ||||||
Ultragenyx Pharmaceutical, Inc. * | 3,839 | 217 | ||||||
USANA Health Sciences, Inc. * | 3,284 | 242 | ||||||
Vanda Pharmaceuticals, Inc. * | 18,632 | 193 | ||||||
Verastem, Inc. * | 11,536 | 98 | ||||||
Versartis, Inc. * | 3,813 | 72 | ||||||
Vital Therapies, Inc. * | 2,850 | 58 | ||||||
VIVUS, Inc. * | 49,543 | 191 | ||||||
Xencor, Inc. * | 7,961 | 74 | ||||||
XenoPort, Inc. * | 31,931 | 172 | ||||||
XOMA Corp. * | 46,172 | 194 | ||||||
Zafgen, Inc. * | 3,763 | 74 | ||||||
ZIOPHARM Oncology, Inc. * | 44,694 | 118 | ||||||
Zogenix, Inc. * | 67,661 | 78 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Biotechnology & Pharmaceuticals – 6.3% – continued |
| |||||||
ZS Pharma, Inc. * | 3,730 | $146 | ||||||
56,901 | ||||||||
Chemicals – 2.4% |
| |||||||
A. Schulman, Inc. | 15,961 | 577 | ||||||
American Vanguard Corp. | 15,852 | 178 | ||||||
Amyris, Inc. * | 14,467 | 55 | ||||||
Axiall Corp. | 38,285 | 1,371 | ||||||
Balchem Corp. | 16,648 | 942 | ||||||
Calgon Carbon Corp. * | 29,115 | 564 | ||||||
Chemtura Corp. * | 49,602 | 1,157 | ||||||
Ferro Corp. * | 39,178 | 568 | ||||||
FutureFuel Corp. | 11,998 | 143 | ||||||
Globe Specialty Metals, Inc. | 34,920 | 635 | ||||||
GrafTech International Ltd. * | 64,799 | 297 | ||||||
H.B. Fuller Co. | 27,433 | 1,089 | ||||||
Hawkins, Inc. | 5,854 | 210 | ||||||
Innophos Holdings, Inc. | 12,006 | 661 | ||||||
Innospec, Inc. | 13,300 | 477 | ||||||
Intrepid Potash, Inc. * | 30,417 | 470 | ||||||
KMG Chemicals, Inc. | 5,304 | 86 | ||||||
Koppers Holdings, Inc. | 11,130 | 369 | ||||||
Kraton Performance Polymers, Inc. * | 17,793 | 317 | ||||||
Kronos Worldwide, Inc. | 11,556 | 159 | ||||||
Landec Corp. * | 14,756 | 181 | ||||||
LSB Industries, Inc. * | 10,514 | 375 | ||||||
Lydall, Inc. * | 9,377 | 253 | ||||||
Marrone Bio Innovations, Inc. * | 8,104 | 22 | ||||||
Materion Corp. | 11,191 | 343 | ||||||
Minerals Technologies, Inc. | 18,889 | 1,166 | ||||||
Oil-Dri Corp. of America | 2,638 | 69 | ||||||
Olin Corp. | 43,291 | 1,093 | ||||||
OM Group, Inc. | 17,524 | 455 | ||||||
OMNOVA Solutions, Inc. * | 26,113 | 140 | ||||||
PolyOne Corp. | 51,539 | 1,834 | ||||||
Polypore International, Inc. * | 24,667 | 960 | ||||||
Quaker Chemical Corp. | 7,222 | 518 | ||||||
Rentech, Inc. * | 125,471 | 215 | ||||||
Sensient Technologies Corp. | 27,108 | 1,419 | ||||||
Stepan Co. | 10,496 | 466 | ||||||
Taminco Corp. * | 15,530 | 405 | ||||||
Trecora Resources * | 10,804 | 134 | ||||||
Trinseo S.A. * | 6,294 | 99 | ||||||
Tronox Ltd., Class A | 33,626 | 876 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 79 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SMALL CAP INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Chemicals – 2.4% – continued |
| |||||||
WD-40 Co. | 8,183 | $556 | ||||||
21,904 | ||||||||
Commercial Services – 2.5% |
| |||||||
ABM Industries, Inc. | 30,593 | 786 | ||||||
Advisory Board (The) Co. * | 20,029 | 933 | ||||||
AMN Healthcare Services, Inc. * | 25,305 | 397 | ||||||
ARC Document Solutions, Inc. * | 22,663 | 184 | ||||||
Ascent Capital Group, Inc., Class A * | 7,570 | 456 | ||||||
Barrett Business Services, Inc. | 3,923 | 155 | ||||||
Brady Corp., Class A | 26,228 | 589 | ||||||
Brink’s (The) Co. | 26,493 | 637 | ||||||
Care.com, Inc. * | 3,734 | 30 | ||||||
CBIZ, Inc. * | 22,878 | 180 | ||||||
CDI Corp. | 7,767 | 113 | ||||||
Civeo Corp. | 51,388 | 597 | ||||||
Collectors Universe, Inc. | 3,800 | 84 | ||||||
Computer Task Group, Inc. | 8,307 | 92 | ||||||
Corporate Executive Board (The) Co. | 18,499 | 1,111 | ||||||
Corporate Resource Services, Inc. * | 9,684 | 14 | ||||||
CorVel Corp. * | 6,113 | 208 | ||||||
CRA International, Inc. * | 5,534 | 141 | ||||||
Cross Country Healthcare, Inc. * | 17,149 | 159 | ||||||
Deluxe Corp. | 27,422 | 1,513 | ||||||
Ennis, Inc. | 14,433 | 190 | ||||||
Franklin Covey Co. * | 6,041 | 118 | ||||||
FTI Consulting, Inc. * | 22,359 | 782 | ||||||
G&K Services, Inc., Class A | 10,904 | 604 | ||||||
GP Strategies Corp. * | 8,173 | 235 | ||||||
Hackett Group (The), Inc. | 13,861 | 83 | ||||||
Healthcare Services Group, Inc. | 38,486 | 1,101 | ||||||
Heidrick & Struggles International, Inc. | 10,043 | 206 | ||||||
Hill International, Inc. * | 16,260 | 65 | ||||||
HMS Holdings Corp. * | 47,971 | 904 | ||||||
Huron Consulting Group, Inc. * | 12,895 | 786 | ||||||
Information Services Group, Inc. * | 17,989 | 68 | ||||||
Insperity, Inc. | 12,446 | 340 | ||||||
Kelly Services, Inc., Class��A | 15,096 | 237 | ||||||
Kforce, Inc. | 14,812 | 290 | ||||||
Korn/Ferry International * | 27,201 | 677 | ||||||
LifeLock, Inc. * | 44,011 | 629 | ||||||
Multi-Color Corp. | 6,739 | 306 | ||||||
National Research Corp., Class A * | 5,519 | 72 | ||||||
Navigant Consulting, Inc. * | 26,728 | 372 | ||||||
On Assignment, Inc. * | 29,725 | 798 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Commercial Services – 2.5% – continued |
| |||||||
Park-Ohio Holdings Corp. | 4,833 | $231 | ||||||
PRGX Global, Inc. * | 14,904 | 87 | ||||||
Providence Service (The) Corp. * | 6,302 | 305 | ||||||
Quad/Graphics, Inc. | 14,993 | 289 | ||||||
Resources Connection, Inc. | 21,223 | 296 | ||||||
Sotheby’s | 33,360 | 1,192 | ||||||
SP Plus Corp. * | 8,485 | 161 | ||||||
TriNet Group, Inc. * | 8,668 | 223 | ||||||
TrueBlue, Inc. * | 22,567 | 570 | ||||||
UniFirst Corp. | 8,074 | 780 | ||||||
Viad Corp. | 11,275 | 233 | ||||||
Vistaprint N.V. * | 18,206 | 997 | ||||||
22,606 | ||||||||
Construction Materials – 0.5% |
| |||||||
Advanced Drainage Systems, Inc. * | 8,333 | 175 | ||||||
Apogee Enterprises, Inc. | 15,911 | 633 | ||||||
Aspen Aerogels, Inc. * | 4,004 | 40 | ||||||
Continental Building Products, Inc. * | 6,467 | 94 | ||||||
Deltic Timber Corp. | 6,045 | 377 | ||||||
Headwaters, Inc. * | 40,078 | 503 | ||||||
Louisiana-Pacific Corp. * | 77,273 | 1,050 | ||||||
Patrick Industries, Inc. * | 4,489 | 190 | ||||||
Ply Gem Holdings, Inc. * | 11,771 | 128 | ||||||
Trex Co., Inc. * | 18,373 | 635 | ||||||
United States Lime & Minerals, Inc. | 1,056 | 61 | ||||||
Universal Forest Products, Inc. | 10,929 | 467 | ||||||
US Concrete, Inc. * | 7,816 | 204 | ||||||
4,557 | ||||||||
Consumer Products – 2.3% |
| |||||||
22nd Century Group, Inc. * | 22,606 | 57 | ||||||
Alico, Inc. | 1,631 | 62 | ||||||
Alliance One International, Inc. * | 48,592 | 96 | ||||||
Annie’s, Inc. * | 9,258 | 425 | ||||||
B&G Foods, Inc. | 29,346 | 809 | ||||||
Boston Beer (The) Co., Inc., Class A * | 4,561 | 1,011 | ||||||
Boulder Brands, Inc. * | 33,189 | 452 | ||||||
Cal-Maine Foods, Inc. | 8,492 | 759 | ||||||
Central Garden and Pet Co., Class A * | 23,823 | 192 | ||||||
Chiquita Brands International, Inc. * | 25,519 | 362 | ||||||
Clearwater Paper Corp. * | 11,173 | 672 | ||||||
Coca-Cola Bottling Co. Consolidated | 2,569 | 192 | ||||||
Craft Brew Alliance, Inc. * | 6,100 | 88 | ||||||
Darling Ingredients, Inc. * | 90,110 | 1,651 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 80 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Consumer Products – 2.3% – continued |
| |||||||
Dean Foods Co. | 51,128 | $677 | ||||||
Diamond Foods, Inc. * | 11,826 | 338 | ||||||
Elizabeth Arden, Inc. * | 14,271 | 239 | ||||||
Farmer Bros. Co. * | 4,120 | 119 | ||||||
Female Health (The) Co. | 12,196 | 43 | ||||||
Fresh Del Monte Produce, Inc. | 19,771 | 631 | ||||||
Harbinger Group, Inc. * | 45,465 | 597 | ||||||
Helen of Troy Ltd. * | 15,651 | 822 | ||||||
IGI Laboratories, Inc. * | 17,501 | 163 | ||||||
Inter Parfums, Inc. | 8,989 | 247 | ||||||
Inventure Foods, Inc. * | 8,439 | 109 | ||||||
J&J Snack Foods Corp. | 8,159 | 763 | ||||||
John B. Sanfilippo & Son, Inc. | 4,500 | 146 | ||||||
Lancaster Colony Corp. | 10,136 | 864 | ||||||
Lifeway Foods, Inc. * | 2,538 | 35 | ||||||
Limoneira Co. | 6,169 | 146 | ||||||
National Beverage Corp. * | 6,258 | 122 | ||||||
Orchids Paper Products Co. | 4,447 | 109 | ||||||
PhotoMedex, Inc. * | 7,183 | 45 | ||||||
PICO Holdings, Inc. * | 12,369 | 247 | ||||||
Post Holdings, Inc. * | 24,053 | 798 | ||||||
Revlon, Inc., Class A * | 6,275 | 199 | ||||||
Sanderson Farms, Inc. | 12,627 | 1,111 | ||||||
Seaboard Corp. * | 155 | 415 | ||||||
Seneca Foods Corp., Class A * | 4,515 | 129 | ||||||
Senomyx, Inc. * | 23,438 | 192 | ||||||
Snyder’s-Lance, Inc. | 26,041 | 690 | ||||||
Tootsie Roll Industries, Inc. | 10,230 | 286 | ||||||
TreeHouse Foods, Inc. * | 23,033 | 1,854 | ||||||
Universal Corp. | 12,697 | 564 | ||||||
Vector Group Ltd. | 37,848 | 839 | ||||||
Zep, Inc. | 12,658 | 177 | ||||||
20,544 | ||||||||
Consumer Services – 0.7% |
| |||||||
American Public Education, Inc. * | 9,631 | 260 | ||||||
Bridgepoint Education, Inc. * | 9,106 | 102 | ||||||
Bright Horizons Family Solutions, Inc. * | 16,800 | 707 | ||||||
Capella Education Co. | 5,941 | 372 | ||||||
Career Education Corp. * | 37,072 | 188 | ||||||
Carriage Services, Inc. | 8,657 | 150 | ||||||
Education Management Corp. * | 11,591 | 13 | ||||||
Grand Canyon Education, Inc. * | 25,556 | 1,042 | ||||||
ITT Educational Services, Inc. * | 12,877 | 55 | ||||||
K12, Inc. * | 18,950 | 302 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Consumer Services – 0.7% – continued |
| |||||||
Matthews International Corp., Class A | 16,316 | $716 | ||||||
Medifast, Inc. * | 7,224 | 237 | ||||||
Regis Corp. | 23,773 | 379 | ||||||
Rent-A-Center, Inc. | 28,908 | 877 | ||||||
Strayer Education, Inc. * | 5,891 | 353 | ||||||
Universal Technical Institute, Inc. | 11,551 | 108 | ||||||
Weight Watchers International, Inc. | 15,073 | 414 | ||||||
6,275 | ||||||||
Containers & Packaging – 0.5% |
| |||||||
AEP Industries, Inc. * | 2,211 | 84 | ||||||
Berry Plastics Group, Inc. * | 49,278 | 1,244 | ||||||
Graphic Packaging Holding Co. * | 179,081 | 2,226 | ||||||
Myers Industries, Inc. | 15,225 | 268 | ||||||
Tredegar Corp. | 13,701 | 252 | ||||||
UFP Technologies, Inc. * | 3,349 | 74 | ||||||
4,148 | ||||||||
Design, Manufacturing & Distribution – 0.3% |
| |||||||
Anixter International, Inc. | 14,873 | 1,262 | ||||||
Benchmark Electronics, Inc. * | 29,487 | 655 | ||||||
CTS Corp. | 18,344 | 291 | ||||||
Fabrinet * | 19,348 | 282 | ||||||
Plexus Corp. * | 18,566 | 686 | ||||||
3,176 | ||||||||
Distributors – Consumer Staples – 0.4% |
| |||||||
Andersons (The), Inc. | 15,428 | 970 | ||||||
Calavo Growers, Inc. | 7,304 | 330 | ||||||
Core-Mark Holding Co., Inc. | 12,614 | 669 | ||||||
United Natural Foods, Inc. * | 27,166 | 1,669 | ||||||
3,638 | ||||||||
Distributors – Discretionary – 0.7% |
| |||||||
ePlus, Inc. * | 2,872 | 161 | ||||||
FTD Cos., Inc. * | 10,387 | 354 | ||||||
Insight Enterprises, Inc. * | 22,337 | 506 | ||||||
MWI Veterinary Supply, Inc. * | 7,039 | 1,045 | ||||||
PC Connection, Inc. | 5,310 | 114 | ||||||
Pool Corp. | 24,748 | 1,334 | ||||||
ScanSource, Inc. * | 15,587 | 539 | ||||||
Speed Commerce, Inc. * | 27,030 | 74 | ||||||
SYNNEX Corp. * | 15,595 | 1,008 | ||||||
United Stationers, Inc. | 21,530 | 809 | ||||||
5,944 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 81 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SMALL CAP INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Electrical Equipment – 1.7% |
| |||||||
AAON, Inc. | 22,993 | $391 | ||||||
American Science & Engineering, Inc. | 4,337 | 240 | ||||||
Argan, Inc. | 6,892 | 230 | ||||||
Badger Meter, Inc. | 7,864 | 397 | ||||||
Bel Fuse, Inc., Class B | 5,515 | 136 | ||||||
Belden, Inc. | 23,872 | 1,528 | ||||||
Capstone Turbine Corp. * | 181,248 | 194 | ||||||
Chase Corp. | 3,680 | 115 | ||||||
Checkpoint Systems, Inc. * | 22,572 | 276 | ||||||
Cognex Corp. * | 47,540 | 1,914 | ||||||
ESCO Technologies, Inc. | 14,494 | 504 | ||||||
FARO Technologies, Inc. * | 9,402 | 477 | ||||||
Generac Holdings, Inc. * | 37,676 | 1,527 | ||||||
General Cable Corp. | 26,511 | 400 | ||||||
Global Power Equipment Group, Inc. | 9,448 | 141 | ||||||
GSI Group, Inc. * | 16,757 | 193 | ||||||
Houston Wire & Cable Co. | 9,777 | 117 | ||||||
InvenSense, Inc. * | 38,893 | 767 | ||||||
Itron, Inc. * | 21,522 | 846 | ||||||
Landauer, Inc. | 5,265 | 174 | ||||||
Littelfuse, Inc. | 12,327 | 1,050 | ||||||
LSI Industries, Inc. | 11,331 | 69 | ||||||
Measurement Specialties, Inc. * | 8,742 | 748 | ||||||
Mesa Laboratories, Inc. | 1,556 | 90 | ||||||
NL Industries, Inc. | 3,800 | 28 | ||||||
Nortek, Inc. * | 4,974 | 371 | ||||||
OSI Systems, Inc. * | 10,911 | 693 | ||||||
Powell Industries, Inc. | 5,121 | 209 | ||||||
Preformed Line Products Co. | 1,449 | 76 | ||||||
Revolution Lighting Technologies, Inc. * | 18,398 | 31 | ||||||
Stoneridge, Inc. * | 15,571 | 176 | ||||||
TCP International Holdings Ltd. * | 3,909 | 30 | ||||||
Watts Water Technologies, Inc., Class A | 15,615 | 910 | ||||||
15,048 | ||||||||
Engineering & Construction Services – 0.9% |
| |||||||
Comfort Systems USA, Inc. | 20,409 | 276 | ||||||
Dycom Industries, Inc. * | 18,519 | 569 | ||||||
EMCOR Group, Inc. | 36,865 | 1,473 | ||||||
EnerNOC, Inc. * | 14,659 | 249 | ||||||
Exponent, Inc. | 7,148 | 507 | ||||||
Granite Construction, Inc. | 21,371 | 680 | ||||||
Great Lakes Dredge & Dock Corp. * | 32,968 | 204 | ||||||
Installed Building Products, Inc. * | 4,536 | 64 | ||||||
Kimball International, Inc., Class B | 18,599 | 280 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Engineering & Construction Services – 0.9% – continued |
| |||||||
Kratos Defense & Security Solutions, Inc. * | 24,506 | $161 | ||||||
Layne Christensen Co. * | 10,932 | 106 | ||||||
MasTec, Inc. * | 35,816 | 1,097 | ||||||
Mistras Group, Inc. * | 9,049 | 184 | ||||||
MYR Group, Inc. * | 11,743 | 283 | ||||||
Orion Marine Group, Inc. * | 15,120 | 151 | ||||||
Pike Corp. * | 14,809 | 176 | ||||||
Primoris Services Corp. | 20,743 | 557 | ||||||
Sterling Construction Co., Inc. * | 10,477 | 80 | ||||||
Team, Inc. * | 11,141 | 422 | ||||||
Tutor Perini Corp. * | 20,362 | 537 | ||||||
VSE Corp. | 2,288 | 112 | ||||||
Willbros Group, Inc. * | 22,002 | 183 | ||||||
8,351 | ||||||||
Forest & Paper Products – 0.4% |
| |||||||
KapStone Paper and Packaging Corp. * | 46,284 | 1,295 | ||||||
Neenah Paper, Inc. | 9,095 | 486 | ||||||
PH Glatfelter Co. | 23,521 | 516 | ||||||
Resolute Forest Products, Inc. * | 35,639 | 557 | ||||||
Schweitzer-Mauduit International, Inc. | 16,672 | 689 | ||||||
Wausau Paper Corp. | 23,275 | 185 | ||||||
3,728 | ||||||||
Gaming, Lodging & Restaurants – 2.4% |
| |||||||
Belmond Ltd., Class A * | 52,810 | 616 | ||||||
Biglari Holdings, Inc. * | 940 | 319 | ||||||
BJ’s Restaurants, Inc. * | 12,917 | 465 | ||||||
Bloomin’ Brands, Inc. * | 42,260 | 775 | ||||||
Bob Evans Farms, Inc. | 13,502 | 639 | ||||||
Boyd Gaming Corp. * | 42,272 | 429 | ||||||
Bravo Brio Restaurant Group, Inc. * | 10,554 | 137 | ||||||
Buffalo Wild Wings, Inc. * | 10,349 | 1,390 | ||||||
Caesars Entertainment Corp. * | 27,882 | 351 | ||||||
Carrols Restaurant Group, Inc. * | 18,952 | 135 | ||||||
Cheesecake Factory (The), Inc. | 27,407 | 1,247 | ||||||
Churchill Downs, Inc. | 7,358 | 717 | ||||||
Chuy’s Holdings, Inc. * | 9,058 | 284 | ||||||
Cracker Barrel Old Country Store, Inc. | 10,470 | 1,080 | ||||||
Del Frisco’s Restaurant Group, Inc. * | 13,023 | 249 | ||||||
Denny’s Corp. * | 47,933 | 337 | ||||||
DineEquity, Inc. | 9,113 | 744 | ||||||
Einstein Noah Restaurant Group, Inc. | 6,114 | 123 | ||||||
El Pollo Loco Holdings, Inc. * | 4,495 | 161 | ||||||
Empire Resorts, Inc. * | 8,322 | 56 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 82 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Gaming, Lodging & Restaurants – 2.4% – continued |
| |||||||
Famous Dave’s of America, Inc. * | 2,576 | $69 | ||||||
Fiesta Restaurant Group, Inc. * | 14,654 | 728 | ||||||
Ignite Restaurant Group, Inc. * | 4,219 | 25 | ||||||
Intrawest Resorts Holdings, Inc. * | 7,424 | 72 | ||||||
Isle of Capri Casinos, Inc. * | 12,088 | 91 | ||||||
Jack in the Box, Inc. | 21,926 | 1,495 | ||||||
Jamba, Inc. * | 9,297 | 132 | ||||||
Krispy Kreme Doughnuts, Inc. * | 35,613 | 611 | ||||||
La Quinta Holdings, Inc. * | 24,142 | 458 | ||||||
Marriott Vacations Worldwide Corp. * | 15,524 | 984 | ||||||
Monarch Casino & Resort, Inc. * | 5,256 | 63 | ||||||
Morgans Hotel Group Co. * | 16,055 | 130 | ||||||
Multimedia Games Holding Co., Inc. * | 16,149 | 582 | ||||||
Nathan’s Famous, Inc. * | 1,728 | 117 | ||||||
Noodles & Co. * | 5,966 | 115 | ||||||
Papa John’s International, Inc. | 16,749 | 670 | ||||||
Papa Murphy’s Holdings, Inc. * | 3,206 | 33 | ||||||
Penn National Gaming, Inc. * | 42,911 | 481 | ||||||
Pinnacle Entertainment, Inc. * | 32,602 | 818 | ||||||
Popeyes Louisiana Kitchen, Inc. * | 12,906 | 523 | ||||||
Red Robin Gourmet Burgers, Inc. * | 7,790 | 443 | ||||||
Ruby Tuesday, Inc. * | 33,883 | 200 | ||||||
Ruth’s Hospitality Group, Inc. | 19,850 | 219 | ||||||
Scientific Games Corp., Class A * | 27,940 | 301 | ||||||
Sonic Corp. * | 29,714 | 664 | ||||||
Texas Roadhouse, Inc. | 38,217 | 1,064 | ||||||
Zoe’s Kitchen, Inc. * | 3,215 | 99 | ||||||
21,441 | ||||||||
Hardware – 2.9% |
| |||||||
ADTRAN, Inc. | 30,863 | 634 | ||||||
Aerohive Networks, Inc. * | 5,267 | 42 | ||||||
Alliance Fiber Optic Products, Inc. | 6,935 | 86 | ||||||
Aruba Networks, Inc. * | 58,446 | 1,261 | ||||||
CalAmp Corp. * | 19,754 | 348 | ||||||
Ciena Corp. * | 57,486 | 961 | ||||||
Clearfield, Inc. * | 6,282 | 80 | ||||||
Comtech Telecommunications Corp. | 8,318 | 309 | ||||||
Control4 Corp. * | 6,299 | 81 | ||||||
Cray, Inc. * | 22,254 | 584 | ||||||
CUI Global, Inc. * | 11,368 | 82 | ||||||
Daktronics, Inc. | 20,793 | 256 | ||||||
Datalink Corp. * | 10,967 | 117 | ||||||
Digimarc Corp. | 3,600 | 75 | ||||||
Dot Hill Systems Corp. * | 33,062 | 125 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Hardware – 2.9% – continued |
| |||||||
DTS, Inc. * | 9,351 | $236 | ||||||
Eastman Kodak Co. * | 9,735 | 214 | ||||||
Electronics For Imaging, Inc. * | 25,512 | 1,127 | ||||||
Emulex Corp. * | 38,758 | 191 | ||||||
ExOne (The) Co. * | 5,468 | 114 | ||||||
Extreme Networks, Inc. * | 52,916 | 254 | ||||||
FEI Co. | 23,134 | 1,745 | ||||||
Finisar Corp. * | 52,968 | 881 | ||||||
Gigamon, Inc. * | 13,327 | 140 | ||||||
Harmonic, Inc. * | 51,466 | 326 | ||||||
Immersion Corp. * | 15,509 | 133 | ||||||
Imprivata, Inc. * | 3,223 | 50 | ||||||
Infinera Corp. * | 67,041 | 715 | ||||||
InterDigital, Inc. | 22,144 | 882 | ||||||
Ixia * | 31,214 | 285 | ||||||
Kopin Corp. * | 36,463 | 124 | ||||||
KVH Industries, Inc. * | 8,466 | 96 | ||||||
Loral Space & Communications, Inc. * | 7,154 | 514 | ||||||
Mercury Systems, Inc. * | 17,956 | 198 | ||||||
Multi-Fineline Electronix, Inc. * | 4,958 | 46 | ||||||
NETGEAR, Inc. * | 19,973 | 624 | ||||||
NetScout Systems, Inc. * | 19,943 | 913 | ||||||
Nimble Storage, Inc. * | 5,103 | 133 | ||||||
Numerex Corp., Class A * | 7,738 | 81 | ||||||
Oplink Communications, Inc. | 9,333 | 157 | ||||||
Plantronics, Inc. | 23,318 | 1,114 | ||||||
Polycom, Inc. * | 75,630 | 929 | ||||||
Procera Networks, Inc. * | 11,267 | 108 | ||||||
QLogic Corp. * | 47,547 | 436 | ||||||
Quantum Corp. * | 120,774 | 140 | ||||||
Ruckus Wireless, Inc. * | 35,360 | 472 | ||||||
Sanmina Corp. * | 45,053 | 940 | ||||||
ShoreTel, Inc. * | 34,419 | 229 | ||||||
Silicon Graphics International Corp. * | 18,719 | 173 | ||||||
Skullcandy, Inc. * | 10,964 | 85 | ||||||
Sonus Networks, Inc. * | 134,105 | 459 | ||||||
Super Micro Computer, Inc. * | 18,801 | 553 | ||||||
Synaptics, Inc. * | 19,717 | 1,443 | ||||||
Telenav, Inc. * | 15,050 | 101 | ||||||
TiVo, Inc. * | 62,854 | 804 | ||||||
TTM Technologies, Inc. * | 29,632 | 202 | ||||||
Turtle Beach Corp. * | 3,862 | 30 | ||||||
Ubiquiti Networks, Inc. * | 16,249 | 610 | ||||||
Universal Electronics, Inc. * | 8,664 | 428 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 83 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SMALL CAP INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Hardware – 2.9% – continued |
| |||||||
ViaSat, Inc. * | 22,649 | $1,248 | ||||||
Viasystems Group, Inc. * | 2,871 | 45 | ||||||
Vicor Corp. * | 9,057 | 85 | ||||||
Violin Memory, Inc. * | 44,178 | 215 | ||||||
Vishay Precision Group, Inc. * | 7,031 | 105 | ||||||
Vocera Communications, Inc. * | 12,447 | 100 | ||||||
VOXX International Corp. * | 10,656 | 99 | ||||||
26,373 | ||||||||
Health Care Facilities & Services – 2.6% |
| |||||||
Acadia Healthcare Co., Inc. * | 23,401 | 1,135 | ||||||
Addus HomeCare Corp. * | 3,480 | 68 | ||||||
Adeptus Health, Inc., Class A * | 3,063 | 76 | ||||||
Air Methods Corp. * | 21,427 | 1,190 | ||||||
Alliance HealthCare Services, Inc. * | 2,803 | 63 | ||||||
Almost Family, Inc. * | 4,540 | 123 | ||||||
Amedisys, Inc. * | 14,829 | 299 | ||||||
Amsurg Corp. * | 23,170 | 1,160 | ||||||
Bio-Reference Laboratories, Inc. * | 13,358 | 375 | ||||||
BioScrip, Inc. * | 37,717 | 261 | ||||||
Capital Senior Living Corp. * | 15,994 | 340 | ||||||
Catalent, Inc. * | 26,753 | 670 | ||||||
Chemed Corp. | 9,616 | 990 | ||||||
Ensign Group (The), Inc. | 10,913 | 380 | ||||||
Enzo Biochem, Inc. * | 18,827 | 97 | ||||||
ExamWorks Group, Inc. * | 18,966 | 621 | ||||||
Five Star Quality Care, Inc. * | 23,574 | 89 | ||||||
Foundation Medicine, Inc. * | 7,691 | 146 | ||||||
Genomic Health, Inc. * | 9,184 | 260 | ||||||
Gentiva Health Services, Inc. * | 17,351 | 291 | ||||||
Hanger, Inc. * | 19,168 | 393 | ||||||
HealthEquity, Inc. * | 5,706 | 104 | ||||||
HealthSouth Corp. | 48,224 | 1,779 | ||||||
Healthways, Inc. * | 17,321 | 278 | ||||||
Independence Holding Co. | 4,138 | 55 | ||||||
IPC The Hospitalist Co., Inc. * | 9,324 | 418 | ||||||
Kindred Healthcare, Inc. | 35,194 | 683 | ||||||
LHC Group, Inc. * | 6,655 | 154 | ||||||
Liberator Medical Holdings, Inc. | 17,359 | 54 | ||||||
Magellan Health, Inc. * | 15,096 | 826 | ||||||
Molina Healthcare, Inc. * | 16,525 | 699 | ||||||
National Healthcare Corp. | 5,600 | 311 | ||||||
NeoStem, Inc. * | 13,032 | 72 | ||||||
OvaScience, Inc. * | 8,497 | 141 | ||||||
Owens & Minor, Inc. | 34,581 | 1,132 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Health Care Facilities & Services – 2.6% – continued |
| |||||||
PAREXEL International Corp. * | 31,157 | $1,966 | ||||||
PharMerica Corp. * | 16,328 | 399 | ||||||
RadNet, Inc. * | 18,010 | 119 | ||||||
Select Medical Holdings Corp. | 42,993 | 517 | ||||||
Skilled Healthcare Group, Inc., Class A * | 12,897 | 85 | ||||||
Surgical Care Affiliates, Inc. * | 6,936 | 185 | ||||||
Team Health Holdings, Inc. * | 38,458 | 2,230 | ||||||
Triple-S Management Corp., Class B * | 13,494 | 269 | ||||||
U.S. Physical Therapy, Inc. | 6,735 | 238 | ||||||
Universal American Corp. * | 23,321 | 188 | ||||||
WellCare Health Plans, Inc. * | 24,014 | 1,449 | ||||||
23,378 | ||||||||
Home & Office Products – 1.8% |
| |||||||
ACCO Brands Corp. * | 62,130 | 429 | ||||||
American Woodmark Corp. * | 6,775 | 250 | ||||||
AV Homes, Inc. * | 6,224 | 91 | ||||||
Beazer Homes USA, Inc. * | 14,679 | 246 | ||||||
Blount International, Inc. * | 26,936 | 408 | ||||||
Cavco Industries, Inc. * | 4,858 | 330 | ||||||
Century Communities, Inc. * | 2,150 | 37 | ||||||
Cenveo, Inc. * | 30,005 | 74 | ||||||
CSS Industries, Inc. | 5,105 | 124 | ||||||
Dixie Group (The), Inc. * | 8,234 | 71 | ||||||
Flexsteel Industries, Inc. | 2,675 | 90 | ||||||
Griffon Corp. | 21,978 | 250 | ||||||
Herman Miller, Inc. | 32,440 | 968 | ||||||
HNI Corp. | 24,671 | 888 | ||||||
Hovnanian Enterprises, Inc., Class A * | 63,167 | 232 | ||||||
Interface, Inc. | 36,320 | 586 | ||||||
iRobot Corp. * | 16,081 | 490 | ||||||
KB Home | 45,729 | 683 | ||||||
Knoll, Inc. | 26,416 | 457 | ||||||
La-Z-Boy, Inc. | 28,573 | 566 | ||||||
LGI Homes, Inc. * | 7,855 | 144 | ||||||
Libbey, Inc. * | 11,805 | 310 | ||||||
Lifetime Brands, Inc. | 5,533 | 85 | ||||||
M/I Homes, Inc. * | 13,434 | 266 | ||||||
Masonite International Corp. * | 16,105 | 892 | ||||||
Mattress Firm Holding Corp. * | 8,177 | 491 | ||||||
MDC Holdings, Inc. | 21,448 | 543 | ||||||
Meritage Homes Corp. * | 21,391 | 759 | ||||||
NACCO Industries, Inc., Class A | 2,675 | 133 | ||||||
New Home (The) Co., Inc. * | 4,525 | 61 | ||||||
Norcraft Cos., Inc. * | 4,017 | 64 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 84 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Home & Office Products – 1.8% – continued |
| |||||||
PGT, Inc. * | 26,025 | $243 | ||||||
Quanex Building Products Corp. | 20,377 | 369 | ||||||
Ryland Group (The), Inc. | 25,640 | 852 | ||||||
Select Comfort Corp. * | 29,664 | 621 | ||||||
St. Joe (The) Co. * | 34,570 | 689 | ||||||
Standard Pacific Corp. * | 79,413 | 595 | ||||||
Steelcase, Inc., Class A | 45,247 | 733 | ||||||
TRI Pointe Homes, Inc. * | 80,225 | 1,038 | ||||||
UCP, Inc., Class A * | 4,309 | 52 | ||||||
WCI Communities, Inc. * | 6,424 | 118 | ||||||
William Lyon Homes, Class A * | 9,643 | 213 | ||||||
16,541 | ||||||||
Industrial Services – 0.6% |
| |||||||
Applied Industrial Technologies, Inc. | 22,916 | 1,046 | ||||||
DXP Enterprises, Inc. * | 7,068 | 521 | ||||||
Electro Rent Corp. | 9,062 | 125 | ||||||
Furmanite Corp. * | 20,725 | 140 | ||||||
H&E Equipment Services, Inc. | 17,110 | 689 | ||||||
Kaman Corp. | 14,962 | 588 | ||||||
TAL International Group, Inc. * | 18,614 | 768 | ||||||
Titan Machinery, Inc. * | 9,547 | 124 | ||||||
Watsco, Inc. | 14,175 | 1,221 | ||||||
Wesco Aircraft Holdings, Inc. * | 28,623 | 498 | ||||||
5,720 | ||||||||
Institutional Financial Services – 0.7% |
| |||||||
BGC Partners, Inc., Class A | 95,332 | 708 | ||||||
CIFC Corp. | 3,352 | 30 | ||||||
Cowen Group, Inc., Class A * | 63,616 | 239 | ||||||
Evercore Partners, Inc., Class A | 18,113 | 851 | ||||||
FBR & Co. * | 4,367 | 120 | ||||||
FXCM, Inc., Class A | 24,798 | 393 | ||||||
Gain Capital Holdings, Inc. | 12,763 | 81 | ||||||
GFI Group, Inc. | 42,309 | 229 | ||||||
Greenhill & Co., Inc. | 15,475 | 720 | ||||||
INTL. FCStone, Inc. * | 8,510 | 147 | ||||||
Investment Technology Group, Inc. * | 19,549 | 308 | ||||||
KCG Holdings, Inc., Class A * | 24,832 | 252 | ||||||
Moelis & Co. | 4,056 | 139 | ||||||
Piper Jaffray Cos. * | 8,873 | 464 | ||||||
RCS Capital Corp., Class A | 5,207 | 117 | ||||||
Stifel Financial Corp. * | 35,876 | 1,682 | ||||||
SWS Group, Inc. * | 16,105 | 111 | ||||||
6,591 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Insurance – 2.5% |
| |||||||
Ambac Financial Group, Inc. * | 24,588 | $543 | ||||||
American Equity Investment Life Holding Co. | 40,694 | 931 | ||||||
AMERISAFE, Inc. | 10,168 | 398 | ||||||
AmTrust Financial Services, Inc. | 16,429 | 654 | ||||||
Argo Group International Holdings Ltd. | 14,319 | 720 | ||||||
Atlas Financial Holdings, Inc. * | 6,337 | 88 | ||||||
Baldwin & Lyons, Inc., Class B | 5,093 | 126 | ||||||
Citizens, Inc. * | 24,176 | 156 | ||||||
CNO Financial Group, Inc. | 119,298 | 2,023 | ||||||
Crawford & Co., Class B | 15,420 | 127 | ||||||
Donegal Group, Inc., Class A | 4,521 | 69 | ||||||
eHealth, Inc. * | 9,716 | 234 | ||||||
EMC Insurance Group, Inc. | 2,791 | 81 | ||||||
Employers Holdings, Inc. | 17,044 | 328 | ||||||
Enstar Group Ltd. * | 4,666 | 636 | ||||||
FBL Financial Group, Inc., Class A | 5,340 | 239 | ||||||
Federated National Holding Co. | 7,544 | 212 | ||||||
Fidelity & Guaranty Life | 6,209 | 133 | ||||||
Global Indemnity PLC * | 4,537 | 114 | ||||||
Greenlight Capital Re Ltd., Class A * | 15,464 | 501 | ||||||
Hallmark Financial Services, Inc. * | 7,610 | 78 | ||||||
HCI Group, Inc. | 4,964 | 179 | ||||||
Heritage Insurance Holdings, Inc. * | 3,783 | 57 | ||||||
Hilltop Holdings, Inc. * | 37,044 | 743 | ||||||
Horace Mann Educators Corp. | 22,247 | 634 | ||||||
Infinity Property & Casualty Corp. | 6,273 | 402 | ||||||
Kansas City Life Insurance Co. | 2,106 | 93 | ||||||
Kemper Corp. | 25,432 | 869 | ||||||
Maiden Holdings Ltd. | 27,130 | 301 | ||||||
Meadowbrook Insurance Group, Inc. | 27,639 | 162 | ||||||
Montpelier Re Holdings Ltd. | 21,429 | 666 | ||||||
National General Holdings Corp. | 19,262 | 325 | ||||||
National Interstate Corp. | 3,911 | 109 | ||||||
National Western Life Insurance Co., Class A | 1,226 | 303 | ||||||
Navigators Group (The), Inc. * | 5,702 | 351 | ||||||
NMI Holdings, Inc., Class A * | 27,855 | 241 | ||||||
OneBeacon Insurance Group Ltd., Class A | 12,467 | 192 | ||||||
Phoenix (The) Cos., Inc. * | 3,146 | 176 | ||||||
Platinum Underwriters Holdings Ltd. | 14,761 | 899 | ||||||
Primerica, Inc. | 29,935 | 1,443 | ||||||
Radian Group, Inc. | 104,599 | 1,492 | ||||||
RLI Corp. | 23,594 | 1,021 | ||||||
RPX Corp. * | 28,882 | 397 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 85 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SMALL CAP INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Insurance – 2.5% – continued |
| |||||||
Safety Insurance Group, Inc. | 7,061 | $381 | ||||||
Selective Insurance Group, Inc. | 30,716 | 680 | ||||||
State Auto Financial Corp. | 8,330 | 171 | ||||||
Symetra Financial Corp. | 41,301 | 964 | ||||||
Third Point Reinsurance Ltd. * | 30,987 | 451 | ||||||
Trupanion, Inc. * | 4,505 | 38 | ||||||
United Fire Group, Inc. | 11,201 | 311 | ||||||
United Insurance Holdings Corp. | 9,161 | 137 | ||||||
Universal Insurance Holdings, Inc. | 17,171 | 222 | ||||||
22,801 | ||||||||
Iron & Steel – 0.6% |
| |||||||
A.M. Castle & Co. * | 10,349 | 88 | ||||||
AK Steel Holding Corp. * | 96,887 | 776 | ||||||
Commercial Metals Co. | 64,499 | 1,101 | ||||||
Haynes International, Inc. | 6,735 | 310 | ||||||
Northwest Pipe Co. * | 5,236 | 178 | ||||||
Olympic Steel, Inc. | 4,990 | 103 | ||||||
Ryerson Holding Corp. * | 6,022 | 77 | ||||||
Schnitzer Steel Industries, Inc., Class A | 14,482 | 348 | ||||||
Shiloh Industries, Inc. * | 4,574 | 78 | ||||||
SunCoke Energy, Inc. * | 38,220 | 858 | ||||||
Universal Stainless & Alloy Products, Inc. * | 3,781 | 100 | ||||||
Worthington Industries, Inc. | 28,200 | 1,050 | ||||||
5,067 | ||||||||
Leisure Products – 0.5% |
| |||||||
Arctic Cat, Inc. | 7,107 | 247 | ||||||
Black Diamond, Inc. * | 12,549 | 95 | ||||||
Brunswick Corp. | 50,777 | 2,140 | ||||||
Callaway Golf Co. | 42,070 | 305 | ||||||
Drew Industries, Inc. | 12,924 | 545 | ||||||
Escalade, Inc. | 5,463 | 66 | ||||||
Fox Factory Holding Corp. * | 6,161 | 95 | ||||||
JAKKS Pacific, Inc. * | 10,292 | 73 | ||||||
Johnson Outdoors, Inc., Class A | 2,748 | 71 | ||||||
LeapFrog Enterprises, Inc. * | 35,747 | 214 | ||||||
Malibu Boats, Inc. Class A * | 4,549 | 84 | ||||||
Marine Products Corp. | 5,784 | 46 | ||||||
Nautilus, Inc. * | 17,191 | 206 | ||||||
Winnebago Industries, Inc. * | 14,784 | 322 | ||||||
4,509 | ||||||||
Machinery – 1.7% |
| |||||||
Alamo Group, Inc. | 3,934 | 161 | ||||||
Altra Industrial Motion Corp. | 14,746 | 430 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Machinery – 1.7% – continued |
| |||||||
ARC Group Worldwide, Inc. * | 1,687 | $26 | ||||||
Astec Industries, Inc. | 10,274 | 375 | ||||||
Briggs & Stratton Corp. | 25,500 | 459 | ||||||
CIRCOR International, Inc. | 9,661 | 650 | ||||||
Columbus McKinnon Corp. | 10,945 | 241 | ||||||
Curtiss-Wright Corp. | 26,375 | 1,739 | ||||||
Douglas Dynamics, Inc. | 12,272 | 239 | ||||||
Federal Signal Corp. | 34,275 | 454 | ||||||
Franklin Electric Co., Inc. | 26,095 | 906 | ||||||
Gorman-Rupp (The) Co. | 10,224 | 307 | ||||||
Graham Corp. | 5,545 | 159 | ||||||
Hillenbrand, Inc. | 34,399 | 1,063 | ||||||
Hurco Cos., Inc. | 3,490 | 131 | ||||||
Hyster-Yale Materials Handling, Inc. | 5,595 | 401 | ||||||
Intevac, Inc. * | 13,183 | 88 | ||||||
John Bean Technologies Corp. | 15,882 | 447 | ||||||
Kadant, Inc. | 6,039 | 236 | ||||||
Lindsay Corp. | 7,019 | 525 | ||||||
Manitex International, Inc. * | 7,608 | 86 | ||||||
MSA Safety, Inc. | 16,148 | 798 | ||||||
MTS Systems Corp. | 8,273 | 565 | ||||||
Mueller Water Products, Inc., Class A | 87,168 | 722 | ||||||
Power Solutions International, Inc. * | 2,472 | 171 | ||||||
Raven Industries, Inc. | 19,885 | 485 | ||||||
Rexnord Corp. * | 41,155 | 1,171 | ||||||
Rofin-Sinar Technologies, Inc. * | 15,253 | 352 | ||||||
Standex International Corp. | 6,977 | 517 | ||||||
Sun Hydraulics Corp. | 12,131 | 456 | ||||||
Tennant Co. | 10,080 | 676 | ||||||
Titan International, Inc. | 24,281 | 287 | ||||||
Twin Disc, Inc. | 4,553 | 123 | ||||||
Xerium Technologies, Inc. * | 5,776 | 84 | ||||||
15,530 | ||||||||
Manufactured Goods – 1.0% |
| |||||||
Aegion Corp. * | 20,710 | 461 | ||||||
Ampco-Pittsburgh Corp. | 4,545 | 91 | ||||||
AZZ, Inc. | 13,984 | 584 | ||||||
Barnes Group, Inc. | 29,682 | 901 | ||||||
Chart Industries, Inc. * | 16,681 | 1,020 | ||||||
Dynamic Materials Corp. | 7,612 | 145 | ||||||
EnPro Industries, Inc. * | 12,441 | 753 | ||||||
Gibraltar Industries, Inc. * | 17,029 | 233 | ||||||
Global Brass & Copper Holdings, Inc. | 11,749 | 172 | ||||||
Handy & Harman Ltd. * | 2,172 | 57 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 86 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Manufactured Goods – 1.0% – continued |
| |||||||
Insteel Industries, Inc. | 10,058 | $207 | ||||||
LB Foster Co., Class A | 5,700 | 262 | ||||||
Mueller Industries, Inc. | 31,062 | 886 | ||||||
NCI Building Systems, Inc. * | 15,464 | 300 | ||||||
NN, Inc. | 9,736 | 260 | ||||||
Omega Flex, Inc. | 1,590 | 31 | ||||||
Proto Labs, Inc. * | 12,386 | 855 | ||||||
RBC Bearings, Inc. | 12,727 | 722 | ||||||
Rogers Corp. * | 9,899 | 542 | ||||||
RTI International Metals, Inc. * | 16,727 | 412 | ||||||
Simpson Manufacturing Co., Inc. | 22,575 | 658 | ||||||
9,552 | ||||||||
Media – 2.3% |
| |||||||
AH Belo Corp., Class A | 10,273 | 110 | ||||||
Angie’s List, Inc. * | 24,046 | 153 | ||||||
Bankrate, Inc. * | 36,528 | 415 | ||||||
Bazaarvoice, Inc. * | 27,542 | 204 | ||||||
Blucora, Inc. * | 22,998 | 350 | ||||||
Boingo Wireless, Inc. * | 12,822 | 91 | ||||||
Borderfree, Inc. * | 3,293 | 42 | ||||||
Brightcove, Inc. * | 17,692 | 99 | ||||||
Central European Media Enterprises Ltd., Class A * | 38,933 | 88 | ||||||
Conversant, Inc. * | 36,669 | 1,256 | ||||||
Coupons.com, Inc. * | 6,652 | 80 | ||||||
Covisint Corp. * | 4,039 | 17 | ||||||
Crown Media Holdings, Inc., Class A * | 19,200 | 61 | ||||||
Cumulus Media, Inc., Class A * | 78,938 | 318 | ||||||
Daily Journal Corp. * | 597 | 108 | ||||||
Demand Media, Inc. * | 4,810 | 43 | ||||||
Dex Media, Inc. * | 8,181 | 78 | ||||||
Dice Holdings, Inc. * | 21,136 | 177 | ||||||
Entercom Communications Corp., Class A * | 13,714 | 110 | ||||||
Entravision Communications Corp., Class A | 32,088 | 127 | ||||||
Eros International PLC * | 12,119 | 177 | ||||||
Everyday Health, Inc. * | 4,168 | 58 | ||||||
EW Scripps (The) Co., Class A * | 16,931 | 276 | ||||||
Global Sources Ltd. * | 8,037 | 54 | ||||||
Gray Television, Inc. * | 27,309 | 215 | ||||||
GrubHub, Inc. * | 4,925 | 169 | ||||||
Harte-Hanks, Inc. | 27,174 | 173 | ||||||
HealthStream, Inc. * | 11,663 | 280 | ||||||
Hemisphere Media Group, Inc. * | 4,479 | 48 | ||||||
Houghton Mifflin Harcourt Co. * | 59,711 | 1,161 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Media – 2.3% – continued |
| |||||||
Journal Communications, Inc., Class A * | 24,600 | $207 | ||||||
Lee Enterprises, Inc. * | 29,500 | 100 | ||||||
Marchex, Inc., Class B | 18,102 | 75 | ||||||
Marin Software, Inc. * | 14,519 | 125 | ||||||
Martha Stewart Living Omnimedia, Inc., Class A * | 16,483 | 59 | ||||||
McClatchy (The) Co., Class A * | 34,040 | 114 | ||||||
MDC Partners, Inc., Class A | 23,150 | 444 | ||||||
Media General, Inc. * | 29,602 | 388 | ||||||
Meredith Corp. | 19,651 | 841 | ||||||
Millennial Media, Inc. * | 41,554 | 77 | ||||||
Monster Worldwide, Inc. * | 50,172 | 276 | ||||||
Move, Inc. * | 21,467 | 450 | ||||||
National CineMedia, Inc. | 33,177 | 481 | ||||||
New Media Investment Group, Inc. | 19,940 | 332 | ||||||
New York Times (The) Co., Class A | 75,681 | 849 | ||||||
Nexstar Broadcasting Group, Inc., Class A | 16,751 | 677 | ||||||
Orbitz Worldwide, Inc. * | 28,422 | 224 | ||||||
QuinStreet, Inc. * | 19,172 | 80 | ||||||
Radio One, Inc., Class D * | 12,750 | 41 | ||||||
ReachLocal, Inc. * | 7,289 | 26 | ||||||
RealD, Inc. * | 22,160 | 208 | ||||||
Reis, Inc. | 4,477 | 106 | ||||||
RetailMeNot, Inc. * | 16,975 | 274 | ||||||
Rocket Fuel, Inc. * | 10,114 | 160 | ||||||
Rubicon Project (The), Inc. * | 4,359 | 51 | ||||||
Saga Communications, Inc., Class A | 1,997 | 67 | ||||||
Salem Communications Corp., Class A | 6,053 | 46 | ||||||
Scholastic Corp. | 14,476 | 468 | ||||||
Shutterfly, Inc. * | 21,076 | 1,027 | ||||||
Shutterstock, Inc. * | 8,317 | 594 | ||||||
Sinclair Broadcast Group, Inc., Class A | 37,572 | 980 | ||||||
Sizmek, Inc. * | 12,161 | 94 | ||||||
TechTarget, Inc. * | 9,139 | 78 | ||||||
Time, Inc. * | 60,345 | 1,414 | ||||||
Townsquare Media, Inc. * | 4,817 | 58 | ||||||
Travelport Worldwide Ltd. * | 284 | 5 | ||||||
Travelzoo, Inc. * | 4,065 | 63 | ||||||
Tremor Video, Inc. * | 19,528 | 46 | ||||||
TrueCar, Inc. * | 4,284 | 77 | ||||||
Trulia, Inc. * | 20,203 | 988 | ||||||
TubeMogul, Inc. * | 1,884 | 22 | ||||||
WebMD Health Corp. * | 21,196 | 886 | ||||||
Wix.com Ltd. * | 7,639 | 124 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 87 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SMALL CAP INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Media – 2.3% – continued |
| |||||||
World Wrestling Entertainment, Inc., Class A | 16,359 | $225 | ||||||
XO Group, Inc. * | 14,844 | 166 | ||||||
YuMe, Inc. * | 9,987 | 50 | ||||||
20,681 | ||||||||
Medical Equipment & Devices – 3.6% |
| |||||||
Abaxis, Inc. | 12,291 | 623 | ||||||
ABIOMED, Inc. * | 21,841 | 542 | ||||||
Accelerate Diagnostics, Inc. * | 12,514 | 269 | ||||||
Accuray, Inc. * | 42,191 | 306 | ||||||
Affymetrix, Inc. * | 40,011 | 319 | ||||||
Analogic Corp. | 6,764 | 433 | ||||||
AngioDynamics, Inc. * | 13,625 | 187 | ||||||
AtriCure, Inc. * | 15,106 | 222 | ||||||
Atrion Corp. | 832 | 254 | ||||||
BioTelemetry, Inc. * | 14,548 | 98 | ||||||
Cardiovascular Systems, Inc. * | 15,052 | 356 | ||||||
Cepheid, Inc. * | 38,172 | 1,681 | ||||||
Cerus Corp. * | 39,698 | 159 | ||||||
CONMED Corp. | 14,868 | 548 | ||||||
CryoLife, Inc. | 15,146 | 149 | ||||||
Cyberonics, Inc. * | 14,684 | 751 | ||||||
Cynosure, Inc., Class A * | 12,305 | 258 | ||||||
Cytori Therapeutics, Inc. * | 37,733 | 26 | ||||||
Derma Sciences, Inc. * | 12,489 | 104 | ||||||
DexCom, Inc. * | 41,000 | 1,640 | ||||||
Endologix, Inc. * | 34,904 | 370 | ||||||
Exact Sciences Corp. * | 45,321 | 878 | ||||||
Exactech, Inc. * | 5,326 | 122 | ||||||
Fluidigm Corp. * | 15,271 | 374 | ||||||
GenMark Diagnostics, Inc. * | 22,937 | 206 | ||||||
Globus Medical, Inc., Class A * | 35,997 | 708 | ||||||
Greatbatch, Inc. * | 13,598 | 579 | ||||||
Haemonetics Corp. * | 28,492 | 995 | ||||||
HeartWare International, Inc. * | 9,295 | 722 | ||||||
ICU Medical, Inc. * | 7,369 | 473 | ||||||
Inogen, Inc. * | 2,885 | 59 | ||||||
Insulet Corp. * | 30,326 | 1,118 | ||||||
Integra LifeSciences Holdings Corp. * | 13,671 | 679 | ||||||
Invacare Corp. | 17,740 | 210 | ||||||
K2M Group Holdings, Inc. * | 4,871 | 70 | ||||||
LDR Holding Corp. * | 9,153 | 285 | ||||||
Luminex Corp. * | 20,415 | 398 | ||||||
Masimo Corp. * | 26,430 | 562 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Medical Equipment & Devices – 3.6% – continued |
| |||||||
Meridian Bioscience, Inc. | 22,632 | $400 | ||||||
Merit Medical Systems, Inc. * | 23,279 | 277 | ||||||
MiMedx Group, Inc. * | 51,115 | 364 | ||||||
NanoString Technologies, Inc. * | 5,536 | 61 | ||||||
Natus Medical, Inc. * | 17,539 | 518 | ||||||
Navidea Biopharmaceuticals, Inc. * | 82,929 | 109 | ||||||
Neogen Corp. * | 20,060 | 792 | ||||||
NuVasive, Inc. * | 25,495 | 889 | ||||||
NxStage Medical, Inc. * | 33,727 | 443 | ||||||
Ocular Therapeutix, Inc. * | 3,113 | 47 | ||||||
OPKO Health, Inc. * | 107,916 | 918 | ||||||
OraSure Technologies, Inc. * | 30,764 | 222 | ||||||
Orthofix International N.V. * | 10,149 | 314 | ||||||
Oxford Immunotec Global PLC * | 7,173 | 110 | ||||||
Pacific Biosciences of California, Inc. * | 31,703 | 156 | ||||||
Quidel Corp. * | 15,526 | 417 | ||||||
Rockwell Medical, Inc. * | 22,341 | 204 | ||||||
RTI Surgical, Inc. * | 31,172 | 149 | ||||||
Sequenom, Inc. * | 64,130 | 190 | ||||||
Sparton Corp. * | 5,582 | 138 | ||||||
Spectranetics (The) Corp. * | 22,752 | 605 | ||||||
STAAR Surgical Co. * | 21,167 | 225 | ||||||
STERIS Corp. | 32,355 | 1,746 | ||||||
SurModics, Inc. * | 7,498 | 136 | ||||||
Symmetry Medical, Inc. * | 20,690 | 209 | ||||||
Tandem Diabetes Care, Inc. * | 4,619 | 62 | ||||||
Thoratec Corp. * | 31,105 | 831 | ||||||
Tornier N.V. * | 19,391 | 463 | ||||||
TransEnterix, Inc. * | 15,803 | 69 | ||||||
TriVascular Technologies, Inc. * | 4,089 | 59 | ||||||
Unilife Corp. * | 59,621 | 137 | ||||||
Utah Medical Products, Inc. | 2,071 | 101 | ||||||
Vascular Solutions, Inc. * | 9,402 | 232 | ||||||
Veracyte, Inc. * | 3,580 | 35 | ||||||
Volcano Corp. * | 27,775 | 296 | ||||||
West Pharmaceutical Services, Inc. | 38,701 | 1,732 | ||||||
Wright Medical Group, Inc. * | 27,333 | 828 | ||||||
Zeltiq Aesthetics, Inc. * | 15,809 | 358 | ||||||
32,575 | ||||||||
Metals & Mining – 0.8% |
| |||||||
Allied Nevada Gold Corp. * | 57,452 | 190 | ||||||
Century Aluminum Co. * | 28,145 | 731 | ||||||
Coeur Mining, Inc. * | 56,172 | 279 | ||||||
Encore Wire Corp. | 11,287 | 419 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 88 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Metals & Mining – 0.8% – continued |
| |||||||
Gold Resource Corp. | 20,741 | $106 | ||||||
Harsco Corp. | 44,175 | 946 | ||||||
Hecla Mining Co. | 187,559 | 465 | ||||||
Horsehead Holding Corp. * | 27,657 | 457 | ||||||
Kaiser Aluminum Corp. | 9,869 | 752 | ||||||
Molycorp, Inc. * | 100,372 | 119 | ||||||
Noranda Aluminum Holding Corp. | 24,457 | 111 | ||||||
Stillwater Mining Co. * | 65,571 | 985 | ||||||
US Silica Holdings, Inc. | 29,428 | 1,840 | ||||||
7,400 | ||||||||
Oil, Gas & Coal – 4.9% |
| |||||||
Abraxas Petroleum Corp. * | 50,535 | 267 | ||||||
Adams Resources & Energy, Inc. | 1,163 | 51 | ||||||
Alon USA Energy, Inc. | 14,434 | 207 | ||||||
Alpha Natural Resources, Inc. * | 122,025 | 303 | ||||||
American Eagle Energy Corp. * | 16,750 | 68 | ||||||
Apco Oil and Gas International, Inc. * | 5,082 | 65 | ||||||
Approach Resources, Inc. * | 21,689 | 314 | ||||||
Arch Coal, Inc. | 117,040 | 248 | ||||||
Basic Energy Services, Inc. * | 17,283 | 375 | ||||||
Bill Barrett Corp. * | 27,168 | 599 | ||||||
Bonanza Creek Energy, Inc. * | 17,951 | 1,021 | ||||||
BPZ Resources, Inc. * | 65,365 | 125 | ||||||
Bristow Group, Inc. | 19,495 | 1,310 | ||||||
C&J Energy Services, Inc. * | 25,215 | 770 | ||||||
Callon Petroleum Co. * | 30,210 | 266 | ||||||
CARBO Ceramics, Inc. | 10,792 | 639 | ||||||
Carrizo Oil & Gas, Inc. * | 24,901 | 1,340 | ||||||
CHC Group Ltd. * | 18,461 | 103 | ||||||
Clayton Williams Energy, Inc. * | 3,197 | 308 | ||||||
Clean Energy Fuels Corp. * | 38,181 | 298 | ||||||
Cloud Peak Energy, Inc. * | 33,177 | 419 | ||||||
Comstock Resources, Inc. | 26,104 | 486 | ||||||
Contango Oil & Gas Co. * | 9,445 | 314 | ||||||
Dawson Geophysical Co. | 4,409 | 80 | ||||||
Delek US Holdings, Inc. | 32,490 | 1,076 | ||||||
Diamondback Energy, Inc. * | 22,935 | 1,715 | ||||||
Eclipse Resources Corp. * | 16,568 | 275 | ||||||
Emerald Oil, Inc. * | 31,379 | 193 | ||||||
Energy XXI Bermuda Ltd. | 51,249 | 582 | ||||||
Evolution Petroleum Corp. | 10,801 | 99 | ||||||
EXCO Resources, Inc. | 83,684 | 279 | ||||||
Exterran Holdings, Inc. | 32,083 | 1,422 | ||||||
Flotek Industries, Inc. * | 29,446 | 768 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Oil, Gas & Coal – 4.9% – continued |
| |||||||
Forest Oil Corp. * | 65,578 | $77 | ||||||
Forum Energy Technologies, Inc. * | 32,639 | 999 | ||||||
FX Energy, Inc. * | 29,561 | 90 | ||||||
Gastar Exploration, Inc. * | 38,375 | 225 | ||||||
Geospace Technologies Corp. * | 7,230 | 254 | ||||||
Glori Energy, Inc. * | 6,670 | 53 | ||||||
Goodrich Petroleum Corp. * | 19,179 | 284 | ||||||
Gulf Island Fabrication, Inc. | 7,971 | 137 | ||||||
Gulfmark Offshore, Inc., Class A | 14,670 | 460 | ||||||
Halcon Resources Corp. * | 142,541 | 564 | ||||||
Hallador Energy Co. | 5,722 | 68 | ||||||
Harvest Natural Resources, Inc. * | 23,215 | 85 | ||||||
Helix Energy Solutions Group, Inc. * | 57,754 | 1,274 | ||||||
Hercules Offshore, Inc. * | 88,449 | 195 | ||||||
Independence Contract Drilling, Inc. * | 5,605 | 66 | ||||||
ION Geophysical Corp. * | 71,153 | 199 | ||||||
Isramco, Inc. * | 493 | 60 | ||||||
Jones Energy, Inc., Class A * | 6,143 | 115 | ||||||
Key Energy Services, Inc. * | 71,300 | 345 | ||||||
Kodiak Oil & Gas Corp. * | 145,855 | 1,979 | ||||||
Magnum Hunter Resources Corp. * | 108,713 | 606 | ||||||
Matador Resources Co. * | 40,113 | 1,037 | ||||||
Matrix Service Co. * | 14,547 | 351 | ||||||
McDermott International, Inc. * | 129,987 | 744 | ||||||
Midstates Petroleum Co., Inc. * | 20,487 | 103 | ||||||
Miller Energy Resources, Inc. * | 16,543 | 73 | ||||||
Mitcham Industries, Inc. * | 6,932 | 77 | ||||||
Natural Gas Services Group, Inc. * | 6,839 | 165 | ||||||
Newpark Resources, Inc. * | 46,236 | 575 | ||||||
North Atlantic Drilling Ltd. | 39,331 | 262 | ||||||
Northern Oil and Gas, Inc. * | 33,301 | 474 | ||||||
Panhandle Oil and Gas, Inc., Class A | 3,854 | 230 | ||||||
Parker Drilling Co.��* | 65,718 | 325 | ||||||
Parsley Energy, Inc., Class A * | 29,107 | 621 | ||||||
PDC Energy, Inc. * | 19,586 | 985 | ||||||
Penn Virginia Corp. * | 35,756 | 454 | ||||||
PetroQuest Energy, Inc. * | 31,598 | 178 | ||||||
PHI, Inc. (Non Voting) * | 6,923 | 285 | ||||||
Pioneer Energy Services Corp. * | 34,186 | 479 | ||||||
PowerSecure International, Inc. * | 12,313 | 118 | ||||||
Profire Energy, Inc. * | 8,517 | 35 | ||||||
Quicksilver Resources, Inc. * | 69,195 | 42 | ||||||
Resolute Energy Corp. * | 42,215 | 265 | ||||||
Rex Energy Corp. * | 26,117 | 331 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 89 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SMALL CAP INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Oil, Gas & Coal – 4.9% – continued | ||||||||
Ring Energy, Inc. * | 11,012 | $162 | ||||||
Rosetta Resources, Inc. * | 33,629 | 1,498 | ||||||
RSP Permian, Inc. * | 12,775 | 327 | ||||||
Sanchez Energy Corp. * | 27,805 | 730 | ||||||
SEACOR Holdings, Inc. * | 11,278 | 844 | ||||||
SemGroup Corp., Class A | 23,345 | 1,944 | ||||||
Stone Energy Corp. * | 30,736 | 964 | ||||||
Swift Energy Co. * | 24,144 | 232 | ||||||
Synergy Resources Corp. * | 36,288 | 442 | ||||||
Tesco Corp. | 18,848 | 374 | ||||||
TETRA Technologies, Inc. * | 42,963 | 465 | ||||||
Thermon Group Holdings, Inc. * | 17,391 | 425 | ||||||
TransAtlantic Petroleum Ltd. * | 12,462 | 112 | ||||||
Triangle Petroleum Corp. * | 41,223 | 454 | ||||||
VAALCO Energy, Inc. * | 27,447 | 233 | ||||||
Vantage Drilling Co. * | 112,378 | 143 | ||||||
W&T Offshore, Inc. | 19,248 | 212 | ||||||
Walter Energy, Inc. | 36,337 | 85 | ||||||
Warren Resources, Inc. * | 40,563 | 215 | ||||||
Western Refining, Inc. | 29,123 | 1,223 | ||||||
Westmoreland Coal Co. * | 8,200 | 307 | ||||||
44,120 | ||||||||
Passenger Transportation – 0.4% | ||||||||
Allegiant Travel Co. | 7,549 | 933 | ||||||
Era Group, Inc. * | 11,168 | 243 | ||||||
Hawaiian Holdings, Inc. * | 24,468 | 329 | ||||||
JetBlue Airways Corp. * | 136,021 | 1,445 | ||||||
Republic Airways Holdings, Inc. * | 27,451 | 305 | ||||||
SkyWest, Inc. | 28,207 | 219 | ||||||
3,474 | ||||||||
Real Estate – 0.3% | ||||||||
Alexander & Baldwin, Inc. | 26,650 | 959 | ||||||
BBX Capital Corp., Class A * | 4,303 | 75 | ||||||
Consolidated-Tomoka Land Co. | 2,359 | 116 | ||||||
Forestar Group, Inc. * | 18,957 | 336 | ||||||
Kennedy-Wilson Holdings, Inc. | 39,287 | 941 | ||||||
Marcus & Millichap, Inc. * | 4,412 | 133 | ||||||
RE/MAX Holdings, Inc., Class A | 5,859 | 174 | ||||||
Resource America, Inc., Class A | 7,514 | 70 | ||||||
Tejon Ranch Co. * | 7,461 | 209 | ||||||
3,013 | ||||||||
Real Estate Investment Trusts – 8.5% | ||||||||
Acadia Realty Trust | 31,446 | 867 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Real Estate Investment Trusts – 8.5% – continued |
| |||||||
AG Mortgage Investment Trust, Inc. | 15,629 | $278 | ||||||
Agree Realty Corp. | 8,267 | 226 | ||||||
Alexander’s, Inc. | 1,147 | 429 | ||||||
Altisource Residential Corp. | 31,243 | 750 | ||||||
American Assets Trust, Inc. | 19,598 | 646 | ||||||
American Capital Mortgage Investment Corp. | 27,940 | 526 | ||||||
American Realty Capital Healthcare Trust, Inc. | 92,716 | 972 | ||||||
American Residential Properties, Inc. * | 17,472 | 320 | ||||||
AmREIT, Inc. | 10,833 | 249 | ||||||
Anworth Mortgage Asset Corp. | 69,539 | 333 | ||||||
Apollo Commercial Real Estate Finance, Inc. | 25,090 | 394 | ||||||
Apollo Residential Mortgage, Inc. | 17,674 | 273 | ||||||
Ares Commercial Real Estate Corp. | 15,748 | 184 | ||||||
Armada Hoffler Properties, Inc. | 13,449 | 122 | ||||||
ARMOUR Residential REIT, Inc. | 195,672 | 753 | ||||||
Ashford Hospitality Prime, Inc. | 13,975 | 213 | ||||||
Ashford Hospitality Trust, Inc. | 38,127 | 390 | ||||||
Associated Estates Realty Corp. | 31,448 | 551 | ||||||
Aviv REIT, Inc. | 10,830 | 285 | ||||||
Campus Crest Communities, Inc. | 35,679 | 228 | ||||||
Capstead Mortgage Corp. | 52,370 | 641 | ||||||
CareTrust REIT, Inc. * | 11,058 | 158 | ||||||
CatchMark Timber Trust, Inc. Class A | 10,468 | 115 | ||||||
Cedar Realty Trust, Inc. | 43,686 | 258 | ||||||
Chambers Street Properties | 129,609 | 976 | ||||||
Chatham Lodging Trust | 18,615 | 430 | ||||||
Chesapeake Lodging Trust | 30,051 | 876 | ||||||
Colony Financial, Inc. | 58,774 | 1,315 | ||||||
CorEnergy Infrastructure Trust, Inc. | 17,412 | 130 | ||||||
CoreSite Realty Corp. | 11,417 | 375 | ||||||
Cousins Properties, Inc. | 120,738 | 1,443 | ||||||
CubeSmart | 79,136 | 1,423 | ||||||
CyrusOne, Inc. | 18,071 | 434 | ||||||
CYS Investments, Inc. | 88,736 | 731 | ||||||
DCT Industrial Trust, Inc. | 180,406 | 1,355 | ||||||
DiamondRock Hospitality Co. | 107,164 | 1,359 | ||||||
DuPont Fabros Technology, Inc. | 34,896 | 944 | ||||||
Dynex Capital, Inc. | 30,165 | 244 | ||||||
EastGroup Properties, Inc. | 17,144 | 1,039 | ||||||
Education Realty Trust, Inc. | 76,178 | 783 | ||||||
Empire State Realty Trust, Inc., Class A | 50,098 | 752 | ||||||
EPR Properties | 31,284 | 1,585 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 90 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Real Estate Investment Trusts – 8.5% – continued |
| |||||||
Equity One, Inc. | 33,721 | $729 | ||||||
Excel Trust, Inc. | 33,575 | 395 | ||||||
FelCor Lodging Trust, Inc. | 67,821 | 635 | ||||||
First Industrial Realty Trust, Inc. | 60,249 | 1,019 | ||||||
First Potomac Realty Trust | 31,825 | 374 | ||||||
Franklin Street Properties Corp. | 49,132 | 551 | ||||||
Geo Group (The), Inc. | 39,759 | 1,520 | ||||||
Getty Realty Corp. | 13,678 | 233 | ||||||
Gladstone Commercial Corp. | 9,456 | 161 | ||||||
Glimcher Realty Trust | 79,448 | 1,076 | ||||||
Government Properties Income Trust | 37,282 | 817 | ||||||
Gramercy Property Trust, Inc. | 63,937 | 368 | ||||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 12,004 | 166 | ||||||
Hatteras Financial Corp. | 52,921 | 950 | ||||||
Healthcare Realty Trust, Inc. | 52,614 | 1,246 | ||||||
Hersha Hospitality Trust | 109,721 | 699 | ||||||
Highwoods Properties, Inc. | 49,476 | 1,925 | ||||||
Hudson Pacific Properties, Inc. | 30,033 | 741 | ||||||
Inland Real Estate Corp. | 47,739 | 473 | ||||||
Invesco Mortgage Capital, Inc. | 67,510 | 1,061 | ||||||
Investors Real Estate Trust | 61,179 | 471 | ||||||
iStar Financial, Inc. * | 46,344 | 626 | ||||||
Kite Realty Group Trust | 17,919 | 434 | ||||||
LaSalle Hotel Properties | 56,984 | 1,951 | ||||||
Lexington Realty Trust | 112,592 | 1,102 | ||||||
LTC Properties, Inc. | 19,018 | 702 | ||||||
Mack-Cali Realty Corp. | 48,484 | 927 | ||||||
Medical Properties Trust, Inc. | 94,422 | 1,158 | ||||||
Monmouth Real Estate Investment Corp. | 30,799 | 312 | ||||||
National Health Investors, Inc. | 18,079 | 1,033 | ||||||
New Residential Investment Corp. | 154,180 | 899 | ||||||
New York Mortgage Trust, Inc. | 49,915 | 361 | ||||||
New York REIT, Inc. | 88,781 | 913 | ||||||
One Liberty Properties, Inc. | 6,700 | 136 | ||||||
Owens Realty Mortgage, Inc. | 5,936 | 85 | ||||||
Parkway Properties, Inc. | 43,097 | 809 | ||||||
Pebblebrook Hotel Trust | 37,116 | 1,386 | ||||||
Pennsylvania Real Estate Investment Trust | 37,611 | 750 | ||||||
PennyMac Mortgage Investment Trust | 40,504 | 868 | ||||||
Physicians Realty Trust | 25,886 | 355 | ||||||
Potlatch Corp. | 22,231 | 894 | ||||||
PS Business Parks, Inc. | 10,662 | 812 | ||||||
QTS Realty Trust, Inc., Class A | 6,604 | 200 | ||||||
RAIT Financial Trust | 44,679 | 332 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Real Estate Investment Trusts – 8.5% – continued |
| |||||||
Ramco-Gershenson Properties Trust | 42,228 | $686 | ||||||
Redwood Trust, Inc. | 45,364 | 752 | ||||||
Resource Capital Corp. | 70,181 | 342 | ||||||
Retail Opportunity Investments Corp. | 49,255 | 724 | ||||||
Rexford Industrial Realty, Inc. | 24,927 | 345 | ||||||
RLJ Lodging Trust | 71,712 | 2,042 | ||||||
Rouse Properties, Inc. | 20,168 | 326 | ||||||
Ryman Hospitality Properties, Inc. | 23,817 | 1,127 | ||||||
Sabra Health Care REIT, Inc. | 25,851 | 629 | ||||||
Saul Centers, Inc. | 5,377 | 251 | ||||||
Select Income REIT | 20,082 | 483 | ||||||
Silver Bay Realty Trust Corp. | 20,891 | 339 | ||||||
Sovran Self Storage, Inc. | 18,090 | 1,345 | ||||||
STAG Industrial, Inc. | 26,687 | 553 | ||||||
Starwood Waypoint Residential Trust | 21,378 | 556 | ||||||
Strategic Hotels & Resorts, Inc. * | 135,380 | 1,577 | ||||||
Summit Hotel Properties, Inc. | 46,697 | 503 | ||||||
Sun Communities, Inc. | 26,320 | 1,329 | ||||||
Sunstone Hotel Investors, Inc. | 112,526 | 1,555 | ||||||
Terreno Realty Corp. | 17,974 | 338 | ||||||
Trade Street Residential, Inc. | 10,265 | 73 | ||||||
UMH Properties, Inc. | 10,371 | 98 | ||||||
Universal Health Realty Income Trust | 6,689 | 279 | ||||||
Urstadt Biddle Properties, Inc., Class A | 13,750 | 279 | ||||||
Washington Real Estate Investment Trust | 36,480 | 926 | ||||||
Western Asset Mortgage Capital Corp. | 22,966 | 339 | ||||||
Whitestone REIT | 12,301 | 171 | ||||||
76,977 | ||||||||
Recreational Facilities & Services – 0.6% |
| |||||||
AMC Entertainment Holdings, Inc., Class A | 11,606 | 267 | ||||||
Carmike Cinemas, Inc. * | 13,219 | 409 | ||||||
ClubCorp Holdings, Inc. | 12,082 | 240 | ||||||
Diamond Resorts International, Inc.* | 19,282 | 439 | ||||||
International Speedway Corp., Class A | 15,213 | 481 | ||||||
Interval Leisure Group, Inc. | 21,640 | 412 | ||||||
Life Time Fitness, Inc. * | 22,370 | 1,128 | ||||||
Marcus (The) Corp. | 9,925 | 157 | ||||||
Reading International, Inc., Class A * | 9,345 | 78 | ||||||
SFX Entertainment, Inc. * | 24,357 | 122 | ||||||
Speedway Motorsports, Inc. | 6,424 | 110 | ||||||
Steiner Leisure Ltd. * | 7,971 | 300 | ||||||
Vail Resorts, Inc. | 19,788 | 1,717 | ||||||
5,860 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 91 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SMALL CAP INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Renewable Energy – 0.6% | ||||||||
Advanced Energy Industries, Inc. * | 22,402 | $421 | ||||||
Ameresco, Inc., Class A * | 10,744 | 74 | ||||||
EnerSys | 25,693 | 1,507 | ||||||
Enphase Energy, Inc. * | 10,080 | 151 | ||||||
FuelCell Energy, Inc. * | 128,033 | 268 | ||||||
Green Plains, Inc. | 20,471 | 765 | ||||||
GT Advanced Technologies, Inc. * | 74,646 | 808 | ||||||
Pacific Ethanol, Inc. * | 13,080 | 183 | ||||||
Plug Power, Inc. * | 90,948 | 417 | ||||||
Renewable Energy Group, Inc. * | 19,027 | 193 | ||||||
REX American Resources Corp. * | 3,458 | 252 | ||||||
Silver Spring Networks, Inc. * | 19,292 | 186 | ||||||
Solazyme, Inc. * | 41,235 | 308 | ||||||
TerraForm Power, Inc., Class A * | 12,625 | 364 | ||||||
5,897 | ||||||||
Retail – Consumer Staples – 0.8% | ||||||||
Casey’s General Stores, Inc. | 21,062 | 1,510 | ||||||
Chefs’ Warehouse (The), Inc. * | 9,901 | 161 | ||||||
Fairway Group Holdings Corp. * | 10,197 | 38 | ||||||
Five Below, Inc. * | 29,709 | 1,177 | ||||||
Fred’s, Inc., Class A | 19,978 | 280 | ||||||
Fresh Market (The), Inc. * | 23,423 | 818 | ||||||
Ingles Markets, Inc., Class A | 7,303 | 173 | ||||||
Natural Grocers by Vitamin Cottage, Inc. * | 4,855 | 79 | ||||||
Nutrisystem, Inc. | 15,547 | 239 | ||||||
Pantry (The), Inc. * | 12,926 | 262 | ||||||
Potbelly Corp. * | 8,232 | 96 | ||||||
PriceSmart, Inc. | 10,236 | 877 | ||||||
Roundy’s, Inc. | 21,644 | 65 | ||||||
Smart & Final Stores, Inc. * | 568 | 8 | ||||||
SpartanNash Co. | 20,551 | 400 | ||||||
SUPERVALU, Inc. * | 110,895 | 991 | ||||||
Village Super Market, Inc., Class A | 3,562 | 81 | ||||||
Weis Markets, Inc. | 5,955 | 232 | ||||||
7,487 | ||||||||
Retail – Discretionary – 3.7% | ||||||||
1-800-Flowers.com, Inc., Class A * | 13,753 | 99 | ||||||
Aeropostale, Inc. * | 43,353 | 143 | ||||||
American Eagle Outfitters, Inc. | 106,419 | 1,545 | ||||||
America’s Car-Mart, Inc. * | 4,289 | 170 | ||||||
ANN, Inc. * | 25,639 | 1,055 | ||||||
Asbury Automotive Group, Inc. * | 16,793 | 1,082 | ||||||
Barnes & Noble, Inc. * | 22,362 | 441 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Retail – Discretionary – 3.7% – continued |
| |||||||
Beacon Roofing Supply, Inc. * | 26,973 | $687 | ||||||
bebe stores, Inc. | 17,302 | 40 | ||||||
Big 5 Sporting Goods Corp. | 10,163 | 95 | ||||||
Blue Nile, Inc. * | 6,674 | 191 | ||||||
Boise Cascade Co. * | 21,552 | 650 | ||||||
Bon-Ton Stores (The), Inc. | 8,072 | 67 | ||||||
Brown Shoe Co., Inc. | 23,889 | 648 | ||||||
Buckle (The), Inc. | 15,430 | 700 | ||||||
Build-A-Bear Workshop, Inc. * | 6,795 | 89 | ||||||
Builders FirstSource, Inc. * | 24,912 | 136 | ||||||
Burlington Stores, Inc. * | 15,673 | 625 | ||||||
Cato (The) Corp., Class A | 14,970 | 516 | ||||||
Chegg, Inc. * | 40,587 | 253 | ||||||
Children’s Place (The), Inc. | 12,045 | 574 | ||||||
Christopher & Banks Corp. * | 20,074 | 199 | ||||||
Citi Trends, Inc. * | 8,549 | 189 | ||||||
Conn’s, Inc. * | 15,091 | 457 | ||||||
Container Store Group (The), Inc. * | 9,485 | 207 | ||||||
Destination Maternity Corp. | 7,521 | 116 | ||||||
Destination XL Group, Inc. * | 19,310 | 91 | ||||||
Ethan Allen Interiors, Inc. | 13,890 | 317 | ||||||
Express, Inc. * | 46,107 | 720 | ||||||
Ezcorp, Inc., Class A * | 28,344 | 281 | ||||||
Finish Line (The), Inc., Class A | 26,387 | 660 | ||||||
First Cash Financial Services, Inc. * | 15,857 | 888 | ||||||
Francesca’s Holdings Corp. * | 22,896 | 319 | ||||||
Gaiam, Inc., Class A * | 8,275 | 61 | ||||||
Genesco, Inc. * | 13,128 | 981 | ||||||
Group 1 Automotive, Inc. | 13,259 | 964 | ||||||
Guess?, Inc. | 33,655 | 739 | ||||||
Haverty Furniture Cos., Inc. | 11,071 | 241 | ||||||
hhgregg, Inc. * | 6,445 | 41 | ||||||
Hibbett Sports, Inc. * | 14,154 | 603 | ||||||
HSN, Inc. | 18,152 | 1,114 | ||||||
Kirkland’s, Inc. * | 7,857 | 127 | ||||||
Lands’ End, Inc. * | 8,963 | 369 | ||||||
Liquidity Services, Inc. * | 13,414 | 184 | ||||||
Lithia Motors, Inc., Class A | 12,494 | 946 | ||||||
Lumber Liquidators Holdings, Inc. * | 15,016 | 862 | ||||||
MarineMax, Inc. * | 13,446 | 227 | ||||||
Men’s Wearhouse (The), Inc. | 26,259 | 1,240 | ||||||
Monro Muffler Brake, Inc. | 17,260 | 838 | ||||||
New York & Co., Inc. * | 15,940 | 48 | ||||||
Office Depot, Inc. * | 292,684 | 1,504 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 92 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Retail – Discretionary – 3.7% – continued |
| |||||||
Outerwall, Inc. * | 11,146 | $625 | ||||||
Overstock.com, Inc. * | 6,396 | 108 | ||||||
Pacific Sunwear of California, Inc. * | 27,650 | 50 | ||||||
Pep Boys-Manny Moe & Jack (The) * | 28,821 | 257 | ||||||
PetMed Express, Inc. | 11,129 | 151 | ||||||
PHH Corp. * | 31,405 | 702 | ||||||
Pier 1 Imports, Inc. | 51,687 | 615 | ||||||
Restoration Hardware Holdings, Inc. * | 17,068 | 1,358 | ||||||
Rush Enterprises, Inc., Class A * | 18,787 | 628 | ||||||
SciQuest, Inc. * | 15,119 | 227 | ||||||
Sears Hometown and Outlet Stores, Inc. * | 6,401 | 99 | ||||||
Shoe Carnival, Inc. | 8,336 | 148 | ||||||
Sonic Automotive, Inc., Class A | 21,893 | 537 | ||||||
Sportsman’s Warehouse Holdings, Inc. * | 5,369 | 36 | ||||||
Stage Stores, Inc. | 17,182 | 294 | ||||||
Stein Mart, Inc. | 15,313 | 177 | ||||||
Stock Building Supply Holdings, Inc. * | 8,030 | 126 | ||||||
Systemax, Inc. * | 6,261 | 78 | ||||||
Tile Shop Holdings, Inc. * | 15,454 | 143 | ||||||
Tilly’s, Inc., Class A * | 5,751 | 43 | ||||||
Tuesday Morning Corp. * | 23,707 | 460 | ||||||
ValueVision Media, Inc., Class A * | 23,553 | 121 | ||||||
Vitamin Shoppe, Inc. * | 16,855 | 748 | ||||||
West Marine, Inc. * | 9,495 | 85 | ||||||
Winmark Corp. | 1,308 | 96 | ||||||
Zumiez, Inc. * | 11,257 | 316 | ||||||
33,567 | ||||||||
Semiconductors – 3.8% | ||||||||
Alpha & Omega Semiconductor Ltd. * | 11,939 | 112 | ||||||
Ambarella, Inc. * | 15,754 | 688 | ||||||
Amkor Technology, Inc. * | 46,480 | 391 | ||||||
Applied Micro Circuits Corp. * | 42,271 | 296 | ||||||
Applied Optoelectronics, Inc. * | 8,148 | 131 | ||||||
Axcelis Technologies, Inc. * | 60,390 | 120 | ||||||
Brooks Automation, Inc. | 36,418 | 383 | ||||||
Cabot Microelectronics Corp. * | 13,178 | 546 | ||||||
Cascade Microtech, Inc. * | 7,033 | 71 | ||||||
Cavium, Inc. * | 28,919 | 1,438 | ||||||
CEVA, Inc. * | 11,469 | 154 | ||||||
Cirrus Logic, Inc. * | 33,967 | 708 | ||||||
Coherent, Inc. * | 13,651 | 838 | ||||||
Cohu, Inc. | 13,804 | 165 | ||||||
Cypress Semiconductor Corp. * | 86,401 | 853 | ||||||
Diodes, Inc. * | 19,829 | 474 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Semiconductors – 3.8% – continued |
| |||||||
DSP Group, Inc. * | 12,245 | $109 | ||||||
Electro Scientific Industries, Inc. | 13,330 | 91 | ||||||
Entegris, Inc. * | 76,182 | 876 | ||||||
Entropic Communications, Inc. * | 49,064 | 131 | ||||||
Exar Corp. * | 21,782 | 195 | ||||||
Fairchild Semiconductor International, Inc. * | 68,383 | 1,062 | ||||||
FormFactor, Inc. * | 30,038 | 215 | ||||||
II-VI, Inc. * | 28,646 | 337 | ||||||
Inphi Corp. * | 17,273 | 248 | ||||||
Integrated Device Technology, Inc. * | 73,112 | 1,166 | ||||||
Integrated Silicon Solution, Inc. | 16,334 | 224 | ||||||
International Rectifier Corp. * | 39,034 | 1,532 | ||||||
Intersil Corp., Class A | 70,496 | 1,002 | ||||||
IXYS Corp. | 13,424 | 141 | ||||||
Kemet Corp. * | 24,881 | 103 | ||||||
Lattice Semiconductor Corp. * | 64,209 | 482 | ||||||
M/A-COM Technology Solutions Holdings, Inc. * | 6,631 | 145 | ||||||
MaxLinear, Inc., Class A * | 15,357 | 106 | ||||||
Maxwell Technologies, Inc. * | 16,395 | 143 | ||||||
Micrel, Inc. | 24,197 | 291 | ||||||
Microsemi Corp. * | 52,020 | 1,322 | ||||||
MKS Instruments, Inc. | 29,374 | 981 | ||||||
Monolithic Power Systems, Inc. | 21,142 | 931 | ||||||
Nanometrics, Inc. * | 13,162 | 199 | ||||||
Newport Corp. * | 21,701 | 385 | ||||||
NVE Corp. * | 2,677 | 173 | ||||||
Oclaro, Inc. * | 51,640 | 74 | ||||||
OmniVision Technologies, Inc. * | 30,699 | 812 | ||||||
Park Electrochemical Corp. | 11,322 | 267 | ||||||
ParkerVision, Inc. * | 53,318 | 61 | ||||||
Peregrine Semiconductor Corp. * | 15,052 | 186 | ||||||
Pericom Semiconductor Corp. * | 12,265 | 120 | ||||||
Photronics, Inc. * | 33,421 | 269 | ||||||
PMC-Sierra, Inc. * | 94,937 | 708 | ||||||
Power Integrations, Inc. | 16,643 | 897 | ||||||
QuickLogic Corp. * | 30,404 | 91 | ||||||
Rambus, Inc. * | 62,251 | 777 | ||||||
RF Micro Devices, Inc. * | 156,627 | 1,808 | ||||||
Rubicon Technology, Inc. * | 14,424 | 61 | ||||||
Rudolph Technologies, Inc. * | 18,163 | 164 | ||||||
Semtech Corp. * | 36,811 | 999 | ||||||
Silicon Image, Inc. * | 43,124 | 217 | ||||||
Silicon Laboratories, Inc. * | 23,793 | 967 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 93 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SMALL CAP INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Semiconductors – 3.8% – continued | ||||||||
Spansion, Inc., Class A * | 33,047 | $753 | ||||||
Tessera Technologies, Inc. | 29,262 | 778 | ||||||
TriQuint Semiconductor, Inc. * | 93,776 | 1,788 | ||||||
Ultra Clean Holdings, Inc. * | 16,229 | 145 | ||||||
Ultratech, Inc. * | 15,251 | 347 | ||||||
Universal Display Corp. * | 22,190 | 724 | ||||||
Veeco Instruments, Inc. * | 21,925 | 766 | ||||||
Vitesse Semiconductor Corp. * | 30,013 | 108 | ||||||
Xcerra Corp. * | 29,055 | 284 | ||||||
34,129 | ||||||||
Software – 5.2% | ||||||||
2U, Inc. * | 5,652 | 88 | ||||||
8x8, Inc. * | 48,089 | 321 | ||||||
A10 Networks, Inc. * | 7,007 | 64 | ||||||
ACI Worldwide, Inc. * | 62,237 | 1,168 | ||||||
Actua Corp. * | 22,391 | 359 | ||||||
Actuate Corp. * | 25,373 | 99 | ||||||
Acxiom Corp. * | 42,119 | 697 | ||||||
Advent Software, Inc. | 28,157 | 889 | ||||||
Agilysys, Inc. * | 7,789 | 91 | ||||||
Amber Road, Inc. * | 4,913 | 85 | ||||||
American Software, Inc., Class A | 13,133 | 116 | ||||||
Aspen Technology, Inc. * | 50,393 | 1,901 | ||||||
Audience, Inc. * | 7,731 | 57 | ||||||
AVG Technologies N.V. * | 19,189 | 318 | ||||||
Benefitfocus, Inc. * | 2,694 | 73 | ||||||
Blackbaud, Inc. | 25,257 | 992 | ||||||
BroadSoft, Inc. * | 15,524 | 327 | ||||||
Calix, Inc. * | 22,780 | 218 | ||||||
Callidus Software, Inc. * | 24,912 | 299 | ||||||
Carbonite, Inc. * | 9,766 | 100 | ||||||
Castlight Health, Inc., Class B * | 7,135 | 92 | ||||||
ChannelAdvisor Corp. * | 11,408 | 187 | ||||||
CommVault Systems, Inc. * | 25,825 | 1,302 | ||||||
Computer Programs & Systems, Inc. | 6,065 | 349 | ||||||
Compuware Corp. | 120,341 | 1,277 | ||||||
Constant Contact, Inc. * | 17,126 | 465 | ||||||
Cornerstone OnDemand, Inc. * | 29,071 | 1,000 | ||||||
Cvent, Inc. * | 9,889 | 251 | ||||||
Dealertrack Technologies, Inc. * | 29,318 | 1,273 | ||||||
Demandware, Inc. * | 16,436 | 837 | ||||||
Digi International, Inc. * | 14,005 | 105 | ||||||
Digital River, Inc. * | 17,674 | 257 | ||||||
E2open, Inc. * | 12,783 | 119 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Software – 5.2% – continued | ||||||||
Ebix, Inc. | 16,868 | $239 | ||||||
Envestnet, Inc. * | 18,611 | 837 | ||||||
Epiq Systems, Inc. | 17,125 | 301 | ||||||
Five9, Inc. * | 6,715 | 44 | ||||||
FleetMatics Group PLC * | 20,420 | 623 | ||||||
Globant S.A. * | 3,682 | 52 | ||||||
Glu Mobile, Inc. * | 49,527 | 256 | ||||||
Guidance Software, Inc. * | 9,854 | 66 | ||||||
Guidewire Software, Inc. * | 37,193 | 1,649 | ||||||
Imperva, Inc. * | 12,014 | 345 | ||||||
inContact, Inc. * | 32,908 | 286 | ||||||
Infoblox, Inc. * | 29,351 | 433 | ||||||
InnerWorkings, Inc. * | 19,344 | 156 | ||||||
Interactive Intelligence Group, Inc. * | 9,118 | 381 | ||||||
Intralinks Holdings, Inc. * | 21,236 | 172 | ||||||
Jive Software, Inc. * | 23,507 | 137 | ||||||
KEYW Holding (The) Corp. * | 17,725 | 196 | ||||||
Kofax Ltd. * | 40,242 | 311 | ||||||
Lionbridge Technologies, Inc. * | 35,616 | 160 | ||||||
LivePerson, Inc. * | 29,489 | 371 | ||||||
LogMeIn, Inc. * | 13,274 | 612 | ||||||
magicJack VocalTec Ltd. * | 9,828 | 97 | ||||||
Manhattan Associates, Inc. * | 41,490 | 1,387 | ||||||
Marketo, Inc. * | 13,965 | 451 | ||||||
Mavenir Systems, Inc. * | 6,306 | 79 | ||||||
MedAssets, Inc. * | 33,377 | 692 | ||||||
Mentor Graphics Corp. | 53,050 | 1,087 | ||||||
Merge Healthcare, Inc. * | 39,004 | 86 | ||||||
MicroStrategy, Inc., Class A * | 4,962 | 649 | ||||||
MobileIron, Inc. * | 6,713 | 75 | ||||||
Model N, Inc. * | 10,622 | 105 | ||||||
Monotype Imaging Holdings, Inc. | 21,615 | 612 | ||||||
NeuStar, Inc., Class A * | 30,613 | 760 | ||||||
Omnicell, Inc. * | 19,989 | 546 | ||||||
OPOWER, Inc. * | 4,282 | 81 | ||||||
Park City Group, Inc. * | 5,259 | 52 | ||||||
Paycom Software, Inc. * | 3,595 | 60 | ||||||
Paylocity Holding Corp. * | 4,618 | 91 | ||||||
PDF Solutions, Inc. * | 16,823 | 212 | ||||||
Pegasystems, Inc. | 19,290 | 369 | ||||||
Progress Software Corp. * | 28,118 | 672 | ||||||
Proofpoint, Inc. * | 20,238 | 752 | ||||||
PROS Holdings, Inc. * | 12,763 | 322 | ||||||
Q2 Holdings, Inc. * | 5,451 | 76 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 94 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Software – 5.2% – continued | ||||||||
QAD, Inc., Class A | 3,373 | $63 | ||||||
Qlik Technologies, Inc. * | 49,057 | 1,326 | ||||||
Quality Systems, Inc. | 27,104 | 373 | ||||||
Qualys, Inc. * | 11,087 | 295 | ||||||
Rally Software Development Corp. * | 13,699 | 165 | ||||||
RealNetworks, Inc. * | 12,780 | 89 | ||||||
RealPage, Inc. * | 28,226 | 437 | ||||||
Rosetta Stone, Inc. * | 11,703 | 94 | ||||||
Sapiens International Corp. N.V. * | 13,513 | 100 | ||||||
Seachange International, Inc. * | 18,113 | 126 | ||||||
SPS Commerce, Inc. * | 8,834 | 470 | ||||||
SS&C Technologies Holdings, Inc. * | 37,277 | 1,636 | ||||||
Synchronoss Technologies, Inc. * | 19,308 | 884 | ||||||
Take-Two Interactive Software, Inc. * | 45,698 | 1,054 | ||||||
Tangoe, Inc. * | 20,959 | 284 | ||||||
Textura Corp. * | 10,274 | 271 | ||||||
Tyler Technologies, Inc. * | 18,068 | 1,597 | ||||||
Ultimate Software Group (The), Inc. * | 15,517 | 2,196 | ||||||
Unwired Planet, Inc. * | 54,036 | 100 | ||||||
Varonis Systems, Inc. * | 2,858 | 60 | ||||||
VASCO Data Security International, Inc. * | 16,223 | 305 | ||||||
Verint Systems, Inc. * | 32,747 | 1,821 | ||||||
VirnetX Holding Corp. * | 23,443 | 141 | ||||||
Vringo, Inc. * | 39,390 | 37 | ||||||
Web.com Group, Inc. * | 28,297 | 565 | ||||||
Zendesk, Inc. * | 6,262 | 135 | ||||||
47,340 | ||||||||
Specialty Finance – 2.6% | ||||||||
Aircastle Ltd. | 35,324 | 578 | ||||||
Altisource Portfolio Solutions S.A. * | 7,985 | 805 | ||||||
Arlington Asset Investment Corp., Class A | 12,263 | 311 | ||||||
Blackhawk Network Holdings, Inc. * | 28,794 | 933 | ||||||
CAI International, Inc. * | 8,926 | 173 | ||||||
Cardtronics, Inc. * | 24,345 | 857 | ||||||
Cash America International, Inc. | 15,389 | 674 | ||||||
Cass Information Systems, Inc. | 6,238 | 258 | ||||||
Consumer Portfolio Services, Inc. * | 11,572 | 74 | ||||||
Credit Acceptance Corp. * | 3,845 | 485 | ||||||
Ellie Mae, Inc. * | 15,348 | 500 | ||||||
Encore Capital Group, Inc. * | 14,058 | 623 | ||||||
Essent Group Ltd. * | 22,728 | 487 | ||||||
Euronet Worldwide, Inc. * | 27,890 | 1,333 | ||||||
Federal Agricultural Mortgage Corp., Class C | 5,732 | 184 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Specialty Finance – 2.6% – continued | ||||||||
First American Financial Corp. | 58,518 | $1,587 | ||||||
Flagstar Bancorp, Inc. * | 10,987 | 185 | ||||||
General Finance Corp. * | 6,089 | 54 | ||||||
Global Cash Access Holdings, Inc. * | 36,285 | 245 | ||||||
Green Dot Corp., Class A * | 16,935 | 358 | ||||||
Heartland Payment Systems, Inc. | 19,616 | 936 | ||||||
HFF, Inc., Class A | 17,919 | 519 | ||||||
Higher One Holdings, Inc. * | 18,954 | 47 | ||||||
HomeStreet, Inc. | 8,184 | 140 | ||||||
JG Wentworth Co. * | 6,488 | 80 | ||||||
Ladder Capital Corp. Class A * | 8,398 | 159 | ||||||
Liberty Tax, Inc. * | 2,093 | 68 | ||||||
Marlin Business Services Corp. | 4,539 | 83 | ||||||
McGrath RentCorp | 14,088 | 482 | ||||||
Meta Financial Group, Inc. | 3,406 | 120 | ||||||
MGIC Investment Corp. * | 185,328 | 1,447 | ||||||
MoneyGram International, Inc. * | 16,077 | 202 | ||||||
Nelnet, Inc., Class A | 11,362 | 489 | ||||||
NewStar Financial, Inc. * | 14,657 | 165 | ||||||
Nicholas Financial, Inc. | 5,574 | 65 | ||||||
PennyMac Financial Services, Inc., Class A * | 7,269 | 106 | ||||||
Performant Financial Corp. * | 16,395 | 132 | ||||||
Portfolio Recovery Associates, Inc. * | 27,412 | 1,432 | ||||||
Regional Management Corp. * | 5,874 | 105 | ||||||
Springleaf Holdings, Inc. * | 13,380 | 427 | ||||||
Stewart Information Services Corp. | 11,676 | 343 | ||||||
Stonegate Mortgage Corp. * | 7,877 | 102 | ||||||
Textainer Group Holdings Ltd. | 11,744 | 365 | ||||||
Tiptree Financial, Inc., Class A * | 4,326 | 36 | ||||||
Tree.com, Inc. * | 3,512 | 126 | ||||||
WageWorks, Inc. * | 19,210 | 875 | ||||||
Walker & Dunlop, Inc. * | 10,212 | 136 | ||||||
Walter Investment Management Corp. * | 20,534 | 451 | ||||||
WEX, Inc. * | 21,218 | 2,341 | ||||||
World Acceptance Corp. * | 4,308 | 291 | ||||||
Xoom Corp. * | 16,813 | 369 | ||||||
23,343 | ||||||||
Technology Services – 2.3% | ||||||||
Barracuda Networks, Inc. * | 4,372 | 112 | ||||||
Black Box Corp. | 8,583 | 200 | ||||||
Bottomline Technologies de, Inc. * | 21,494 | 593 | ||||||
CACI International, Inc., Class A * | 12,879 | 918 | ||||||
Ciber, Inc. * | 42,640 | 146 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 95 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SMALL CAP INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Technology Services – 2.3% – continued |
| |||||||
Cinedigm Corp., Class A * | 42,130 | $65 | ||||||
comScore, Inc. * | 18,949 | 690 | ||||||
Comverse, Inc. * | 12,345 | 276 | ||||||
Convergys Corp. | 55,561 | 990 | ||||||
CSG Systems International, Inc. | 18,605 | 489 | ||||||
Cubic Corp. | 11,257 | 527 | ||||||
Cyan, Inc. * | 15,143 | 47 | ||||||
Endurance International Group Holdings, Inc. * | 16,619 | 270 | ||||||
Engility Holdings, Inc. * | 9,665 | 301 | ||||||
EPAM Systems, Inc. * | 19,486 | 853 | ||||||
EVERTEC, Inc. | 35,957 | 803 | ||||||
ExlService Holdings, Inc. * | 17,811 | 435 | ||||||
Fair Isaac Corp. | 17,593 | 969 | ||||||
Forrester Research, Inc. | 6,018 | 222 | ||||||
ICF International, Inc. * | 10,879 | 335 | ||||||
iGATE Corp. * | 20,132 | 739 | ||||||
Luxoft Holding, Inc. * | 4,319 | 161 | ||||||
ManTech International Corp., Class A | 13,042 | 351 | ||||||
MarketAxess Holdings, Inc. | 20,644 | 1,277 | ||||||
MAXIMUS, Inc. | 37,069 | 1,488 | ||||||
Medidata Solutions, Inc. * | 29,607 | 1,311 | ||||||
NIC, Inc. | 35,613 | 613 | ||||||
Perficient, Inc. * | 18,722 | 281 | ||||||
Rentrak Corp. * | 5,391 | 329 | ||||||
Rightside Group Ltd. * | 4,810 | 47 | ||||||
Sapient Corp. * | 62,758 | 879 | ||||||
Science Applications International Corp. | 23,008 | 1,018 | ||||||
ServiceSource International, Inc. * | 37,709 | 122 | ||||||
Sykes Enterprises, Inc. * | 21,469 | 429 | ||||||
Syntel, Inc. * | 8,496 | 747 | ||||||
TeleTech Holdings, Inc. * | 9,667 | 238 | ||||||
Tessco Technologies, Inc. | 3,167 | 92 | ||||||
Unisys Corp. * | 27,946 | 654 | ||||||
Virtusa Corp. * | 14,190 | 505 | ||||||
20,522 | ||||||||
Telecom – 1.2% | ||||||||
Atlantic Tele-Network, Inc. | 5,088 | 274 | ||||||
Cincinnati Bell, Inc. * | 113,771 | 383 | ||||||
Cogent Communications Holdings, Inc. | 25,517 | 858 | ||||||
Consolidated Communications Holdings, Inc. | 22,007 | 551 | ||||||
DigitalGlobe, Inc. * | 41,290 | 1,177 | ||||||
EarthLink Holdings Corp. | 56,459 | 193 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Telecom – 1.2% – continued | ||||||||
Enventis Corp. | 7,465 | $136 | ||||||
FairPoint Communications, Inc. * | 11,434 | 173 | ||||||
General Communication, Inc., Class A * | 19,802 | 216 | ||||||
Global Eagle Entertainment, Inc. * | 21,026 | 236 | ||||||
Globalstar, Inc. * | 150,028 | 549 | ||||||
Gogo, Inc. * | 30,524 | 515 | ||||||
GTT Communications, Inc. * | 7,768 | 93 | ||||||
Hawaiian Telcom Holdco, Inc. * | 5,690 | 146 | ||||||
IDT Corp., Class B | 9,277 | 149 | ||||||
Inteliquent, Inc. | 17,884 | 223 | ||||||
Intelsat S.A. * | 15,082 | 259 | ||||||
Internap Network Services Corp. * | 29,932 | 207 | ||||||
Iridium Communications, Inc. * | 44,007 | 389 | ||||||
j2 Global, Inc. | 26,016 | 1,284 | ||||||
Limelight Networks, Inc. * | 33,213 | 78 | ||||||
Lumos Networks Corp. | 10,367 | 168 | ||||||
NTELOS Holdings Corp. | 9,337 | 99 | ||||||
ORBCOMM, Inc. * | 24,567 | 141 | ||||||
Pendrell Corp. * | 89,883 | 120 | ||||||
Premiere Global Services, Inc. * | 26,199 | 314 | ||||||
RigNet, Inc. * | 6,573 | 266 | ||||||
RingCentral, Inc., Class A * | 15,434 | 196 | ||||||
Shenandoah Telecommunications Co. | 13,096 | 325 | ||||||
Spok Holdings, Inc. | 11,951 | 155 | ||||||
TeleCommunication Systems, Inc., Class A * | 26,734 | 75 | ||||||
Vonage Holdings Corp. * | 94,517 | 310 | ||||||
West Corp. | 21,044 | 620 | ||||||
Zix Corp. * | 32,660 | 112 | ||||||
10,990 | ||||||||
Transportation & Logistics – 1.9% | ||||||||
Air Transport Services Group, Inc. * | 28,826 | 210 | ||||||
ArcBest Corp. | 14,198 | 530 | ||||||
Ardmore Shipping Corp. | 9,943 | 108 | ||||||
Atlas Air Worldwide Holdings, Inc. * | 13,766 | 455 | ||||||
Baltic Trading Ltd. | 27,098 | 112 | ||||||
Celadon Group, Inc. | 11,375 | 221 | ||||||
DHT Holdings, Inc. | 50,542 | 311 | ||||||
Dorian LPG Ltd. * | 4,027 | 72 | ||||||
Echo Global Logistics, Inc. * | 12,737 | 300 | ||||||
Forward Air Corp. | 17,074 | 765 | ||||||
Frontline Ltd. * | 36,537 | 46 | ||||||
GasLog Ltd. | 22,995 | 506 | ||||||
Heartland Express, Inc. | 29,762 | 713 | ||||||
Hornbeck Offshore Services, Inc. * | 19,820 | 649 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 96 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Transportation & Logistics – 1.9% – continued |
| |||||||
Hub Group, Inc., Class A * | 20,120 | $815 | ||||||
International Shipholding Corp. | 3,199 | 57 | ||||||
Knight Transportation, Inc. | 32,742 | 897 | ||||||
Knightsbridge Tankers Ltd. | 18,500 | 164 | ||||||
Marten Transport Ltd. | 13,116 | 234 | ||||||
Matson, Inc. | 23,473 | 588 | ||||||
Mobile Mini, Inc. | 25,562 | 894 | ||||||
ModusLink Global Solutions, Inc. * | 20,052 | 72 | ||||||
Navios Maritime Acq Corp. | 45,350 | 123 | ||||||
Navios Maritime Holdings, Inc. | 43,724 | 262 | ||||||
Nordic American Offshore Ltd. | 9,977 | 176 | ||||||
Nordic American Tankers Ltd. | 48,542 | 386 | ||||||
P.A.M. Transportation Services, Inc. * | 1,775 | 64 | ||||||
Patriot Transportation Holding, Inc. * | 3,624 | 123 | ||||||
Quality Distribution, Inc. * | 15,073 | 193 | ||||||
Roadrunner Transportation Systems, Inc. * | 15,145 | 345 | ||||||
Safe Bulkers, Inc. | 21,425 | 143 | ||||||
Saia, Inc. * | 13,463 | 667 | ||||||
Scorpio Bulkers, Inc. * | 73,502 | 428 | ||||||
Scorpio Tankers, Inc. | 94,004 | 781 | ||||||
Ship Finance International Ltd. | 32,280 | 546 | ||||||
Stamps.com, Inc. * | 7,697 | 244 | ||||||
Swift Transportation Co. * | 46,569 | 977 | ||||||
Teekay Tankers Ltd., Class A | 33,923 | 127 | ||||||
Ultrapetrol Bahamas Ltd. * | 12,015 | 37 | ||||||
Universal Truckload Services, Inc. | 3,623 | 88 | ||||||
USA Truck, Inc. * | 3,452 | 60 | ||||||
UTi Worldwide, Inc. * | 49,966 | 531 | ||||||
Werner Enterprises, Inc. | 24,447 | 616 | ||||||
XPO Logistics, Inc. * | 28,749 | 1,083 | ||||||
YRC Worldwide, Inc. * | 16,994 | 345 | ||||||
17,064 | ||||||||
Transportation Equipment – 0.3% | ||||||||
Accuride Corp. * | 21,224 | 81 | ||||||
American Railcar Industries, Inc. | 5,143 | 380 | ||||||
Commercial Vehicle Group, Inc. * | 14,572 | 90 | ||||||
FreightCar America, Inc. | 6,649 | 222 | ||||||
Greenbrier (The) Cos., Inc. | 15,102 | 1,108 | ||||||
Meritor, Inc. * | 53,481 | 580 | ||||||
Spartan Motors, Inc. | 18,650 | 87 | ||||||
Wabash National Corp. * | 37,616 | 501 | ||||||
3,049 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Utilities – 3.2% | ||||||||
Abengoa Yield PLC * | 15,630 | $556 | ||||||
ALLETE, Inc. | 23,184 | 1,029 | ||||||
American States Water Co. | 21,140 | 643 | ||||||
Artesian Resources Corp., Class A | 4,277 | 86 | ||||||
Atlantic Power Corp. | 66,522 | 158 | ||||||
Avista Corp. | 33,004 | 1,008 | ||||||
Black Hills Corp. | 24,428 | 1,170 | ||||||
California Water Service Group | 26,065 | 585 | ||||||
Chesapeake Utilities Corp. | 7,904 | 329 | ||||||
Cleco Corp. | 33,044 | 1,591 | ||||||
Connecticut Water Service, Inc. | 6,009 | 195 | ||||||
Dynegy, Inc. * | 54,918 | 1,585 | ||||||
El Paso Electric Co. | 22,047 | 806 | ||||||
Empire District Electric (The) Co. | 23,533 | 568 | ||||||
IDACORP, Inc. | 27,571 | 1,478 | ||||||
Laclede Group (The), Inc. | 23,594 | 1,095 | ||||||
MGE Energy, Inc. | 18,884 | 704 | ||||||
Middlesex Water Co. | 8,822 | 173 | ||||||
New Jersey Resources Corp. | 23,071 | 1,165 | ||||||
Northwest Natural Gas Co. | 14,803 | 625 | ||||||
NorthWestern Corp. | 21,443 | 973 | ||||||
NRG Yield, Inc., Class A | 13,005 | 612 | ||||||
ONE Gas, Inc. | 28,443 | 974 | ||||||
Ormat Technologies, Inc. | 9,787 | 257 | ||||||
Otter Tail Corp. | 19,849 | 529 | ||||||
Pattern Energy Group, Inc. | 21,583 | 667 | ||||||
Piedmont Natural Gas Co., Inc. | 42,775 | 1,434 | ||||||
PNM Resources, Inc. | 43,579 | 1,086 | ||||||
PNM Resources, Inc. – (Fractional Shares) (1) | 50,000 | – | ||||||
Portland General Electric Co. | 42,880 | 1,377 | ||||||
SJW Corp. | 8,474 | 228 | ||||||
South Jersey Industries, Inc. | 18,056 | 964 | ||||||
Southwest Gas Corp. | 25,484 | 1,238 | ||||||
Spark Energy, Inc., Class A * | 1,585 | 28 | ||||||
UIL Holdings Corp. | 30,976 | 1,097 | ||||||
Unitil Corp. | 7,638 | 237 | ||||||
WGL Holdings, Inc. | 28,438 | 1,198 | ||||||
York Water Co. | 7,150 | 143 | ||||||
28,591 | ||||||||
Waste & Environment Services & Equipment – 0.5% |
| |||||||
Advanced Emissions Solutions, Inc. * | 11,970 | 255 | ||||||
Cantel Medical Corp. | 18,461 | 635 | ||||||
Casella Waste Systems, Inc., Class A * | 21,309 | 82 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 97 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SMALL CAP INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 97.6% – continued | ||||||||
Waste & Environment Services & Equipment – 0.5% – continued |
| |||||||
Ceco Environmental Corp. | 11,596 | $155 | ||||||
CLARCOR, Inc. | 27,639 | 1,743 | ||||||
Energy Recovery, Inc. * | 21,218 | 75 | ||||||
Heritage-Crystal Clean, Inc. * | 5,047 | 75 | ||||||
Nuverra Environmental Solutions, Inc. * | 8,311 | 123 | ||||||
Quest Resource Holding Corp. * | 7,020 | 12 | ||||||
Tetra Tech, Inc. | 35,575 | 889 | ||||||
US Ecology, Inc. | 11,769 | 550 | ||||||
Vertex Energy, Inc. * | 7,190 | 50 | ||||||
4,644 | ||||||||
Total Common Stocks | ||||||||
(Cost $676,674) | 884,265 | |||||||
OTHER – 0.0% (2) | ||||||||
Escrow DLB Oil & Gas * | 1,200 | – | ||||||
Escrow Gerber Scientific, Inc. * | 9,016 | – | ||||||
Escrow Position PetroCorp * | 420 | – | ||||||
Total Other | ||||||||
(Cost $ – ) | – | |||||||
RIGHTS – 0.0% | ||||||||
Banking – 0.0% | ||||||||
CSF Holdings, Inc. (1)* | 6,212 | – | ||||||
Biotechnology & Pharmaceuticals – 0.0% |
| |||||||
Omthera Pharmaceuticals, Inc. (Contingent Value Rights) (1)* | 3,681 | – | ||||||
Telecom – 0.0% | ||||||||
Leap Wireless International, Inc. (Contingent Value Rights) (1)* | 30,708 | – | ||||||
Total Rights | ||||||||
(Cost $ – ) | – |
NUMBER OF WARRANTS | VALUE (000s) | |||||||
WARRANTS – 0.0% | ||||||||
Magnum Hunter Resources Corp., Exp. 4/15/16, Strike $8.50 * | 9,488 | $– | ||||||
Tejon Ranch Co., Exp. 8/31/16, Strike $40.00 * | 1,122 | 2 | ||||||
Total Warrants | ||||||||
(Cost $7) | 2 | |||||||
NUMBER OF SHARES | VALUE (000s) | |||||||
INVESTMENT COMPANIES – 1.7% | ||||||||
Northern Institutional Funds – Diversified Assets Portfolio, 0.01% (3)(4) | 15,543,571 | $15,544 | ||||||
Total Investment Companies | ||||||||
(Cost $15,544) | 15,544 | |||||||
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
SHORT-TERM INVESTMENTS – 0.2% | ||||||||
U. S. Treasury Bill, 0.04%, 10/2/14 (5) | $1,655 | $1,655 | ||||||
Total Short-Term Investments | ||||||||
(Cost $1,655) | 1,655 | |||||||
Total Investments – 99.5% | ||||||||
(Cost $693,880) | 901,466 | |||||||
Other Assets less Liabilities – 0.5% |
| 4,664 | ||||||
NET ASSETS – 100.0% | $906,130 |
(1) | Level 3 asset that is worthless, bankrupt or has been delisted. |
(2) | Security listed as “escrow” is considered to be worthless. |
(3) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
(4) | At March 31, 2014, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $31,475,000 with net sales of approximately $15,931,000 during the six months ended September 30, 2014. |
(5) | Security pledged as collateral to cover margin requirements for open futures contracts. |
* | Non-Income Producing Security |
Percentages shown are based on Net Assets.
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 98 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
At September 30, 2014, the Fund had open futures contracts as follows:
TYPE | NUMBER OF CONTRACTS | NOTIONAL AMOUNT (000s) | CONTRACT POSITION | CONTRACT EXP. | UNREALIZED GAINS (LOSSES) (000s) | |||||||||||||||
Russell 2000 Mini Index | 200 | $21,932 | Long | 12/14 | $(892) |
At September 30, 2014, the industry sectors for the Fund were:
INDUSTRY SECTOR | % OF LONG-TERM INVESTMENTS | |||
Consumer Discretionary | 13.2% | |||
Consumer Staples | 3.2 | |||
Energy | 5.6 | |||
Financials | 23.7 | |||
Health Care | 13.5 | |||
Industrials | 13.8 | |||
Information Technology | 17.9 | |||
Materials | 5.0 | |||
Telecommunication Services | 0.8 | |||
Utilities | 3.3 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions including risk, market participants would use in pricing a strategy).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Common Stocks | $884,265 | (1) | $– | $– | $884,265 | |||||||||||
Warrants | – | 2 | 2 | |||||||||||||
Investment Companies | 15,544 | – | – | 15,544 | ||||||||||||
Short-Term Investments | – | 1,655 | – | 1,655 | ||||||||||||
Total Investments | $899,809 | $1,657 | $– | $901,466 | ||||||||||||
OTHER FINANCIAL INSTRUMENTS |
| |||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (892) | $– | $– | $(892) |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, the Fund had transfers from Level 1 to Level 2 as disclosed below:
Transfers from Level 1 to Level 2 | ||||||
Industry | Value (000s) | Reason | ||||
Warrants | ||||||
Real Estate | $2 | Bid price used |
At September 30, 2014, the Fund had transfers from Level 2 to Level 1 as disclosed below:
Transfers from Level 2 to Level 1 | ||||||
Industry | Value (000s) | Reason | ||||
Common Stocks | ||||||
Biotechnology & Pharmaceuticals | $108 | Valuations at official close price. |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 99 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
STOCK INDEX FUND
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.6% | ||||||||
Aerospace & Defense – 2.2% | ||||||||
Boeing (The) Co. | 221,837 | $28,258 | ||||||
General Dynamics Corp. | 106,909 | 13,587 | ||||||
L-3 Communications Holdings, Inc. | 28,665 | 3,409 | ||||||
Lockheed Martin Corp. | 88,151 | 16,112 | ||||||
Northrop Grumman Corp. | 70,788 | 9,327 | ||||||
Precision Castparts Corp. | 47,811 | 11,326 | ||||||
Raytheon Co. | 103,526 | 10,520 | ||||||
Rockwell Collins, Inc. | 44,608 | 3,502 | ||||||
Textron, Inc. | 92,670 | 3,335 | ||||||
United Technologies Corp. | 278,875 | 29,449 | ||||||
128,825 | ||||||||
Apparel & Textile Products – 0.8% | ||||||||
Fossil Group, Inc. * | 15,685 | 1,473 | ||||||
Michael Kors Holdings Ltd. * | 67,548 | 4,822 | ||||||
NIKE, Inc., Class B | 236,210 | 21,070 | ||||||
PVH Corp. | 27,362 | 3,315 | ||||||
Ralph Lauren Corp. | 19,524 | 3,216 | ||||||
Under Armour, Inc., Class A * | 53,796 | 3,717 | ||||||
VF Corp. | 113,626 | 7,503 | ||||||
45,116 | ||||||||
Asset Management – 0.9% | ||||||||
Affiliated Managers Group, Inc. * | 18,282 | 3,663 | ||||||
BlackRock, Inc. | 41,360 | 13,579 | ||||||
Charles Schwab (The) Corp. | 383,931 | 11,284 | ||||||
E*TRADE Financial Corp. * | 94,870 | 2,143 | ||||||
Franklin Resources, Inc. | 132,575 | 7,240 | ||||||
Invesco Ltd. | 142,608 | 5,630 | ||||||
Legg Mason, Inc. | 33,952 | 1,737 | ||||||
Leucadia National Corp. | 105,481 | 2,515 | ||||||
T Rowe Price Group, Inc. | 87,049 | 6,825 | ||||||
54,616 | ||||||||
Automotive – 1.0% | ||||||||
BorgWarner, Inc. | 75,571 | 3,976 | ||||||
Delphi Automotive PLC | 94,756 | 5,812 | ||||||
Ford Motor Co. | 1,265,284 | 18,713 | ||||||
General Motors Co. | 437,715 | 13,980 | ||||||
Goodyear Tire & Rubber (The) Co. | 90,723 | 2,049 | ||||||
Harley-Davidson, Inc. | 72,474 | 4,218 | ||||||
Harman International Industries, Inc. | 22,334 | 2,190 | ||||||
Johnson Controls, Inc. | 219,605 | 9,663 | ||||||
60,601 | ||||||||
Banking – 5.9% | ||||||||
Bank of America Corp. | 3,461,255 | 59,014 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.6% – continued | ||||||||
Banking – 5.9% – continued | ||||||||
BB&T Corp. | 237,561 | $8,840 | ||||||
Citigroup, Inc. | 997,362 | 51,683 | ||||||
Comerica, Inc. | 59,959 | 2,990 | ||||||
Fifth Third Bancorp | 275,242 | 5,510 | ||||||
Hudson City Bancorp, Inc. | 155,300 | 1,509 | ||||||
Huntington Bancshares, Inc. | 263,973 | 2,568 | ||||||
JPMorgan Chase & Co. | 1,249,065 | 75,244 | ||||||
KeyCorp | 283,328 | 3,777 | ||||||
M&T Bank Corp. | 43,544 | 5,369 | ||||||
People’s United Financial, Inc. | 102,835 | 1,488 | ||||||
PNC Financial Services Group (The), Inc. | 176,613 | 15,115 | ||||||
Regions Financial Corp. | 435,899 | 4,376 | ||||||
SunTrust Banks, Inc. | 176,754 | 6,722 | ||||||
US Bancorp | 597,527 | 24,995 | ||||||
Wells Fargo & Co. | 1,576,923 | 81,795 | ||||||
Zions Bancorporation | 60,951 | 1,771 | ||||||
352,766 | ||||||||
Biotechnology & Pharmaceuticals – 8.8% | ||||||||
AbbVie, Inc. | 523,985 | 30,265 | ||||||
Actavis PLC * | 87,640 | 21,146 | ||||||
Alexion Pharmaceuticals, Inc. * | 65,424 | 10,849 | ||||||
Allergan, Inc. | 98,241 | 17,506 | ||||||
Amgen, Inc. | 250,296 | 35,157 | ||||||
Biogen Idec, Inc. * | 78,427 | 25,944 | ||||||
Bristol-Myers Squibb Co. | 547,984 | 28,046 | ||||||
Celgene Corp. * | 264,780 | 25,096 | ||||||
Eli Lilly & Co. | 325,755 | 21,125 | ||||||
Gilead Sciences, Inc. * | 498,305 | 53,045 | ||||||
Hospira, Inc. * | 55,682 | 2,897 | ||||||
Johnson & Johnson | 934,546 | 99,613 | ||||||
Mallinckrodt PLC * | 37,428 | 3,374 | ||||||
Merck & Co., Inc. | 959,082 | 56,854 | ||||||
Mylan, Inc. * | 123,579 | 5,622 | ||||||
Perrigo Co. PLC | 44,380 | 6,665 | ||||||
Pfizer, Inc. | 2,087,894 | 61,739 | ||||||
Regeneron Pharmaceuticals, Inc. * | 25,222 | 9,093 | ||||||
Vertex Pharmaceuticals, Inc. * | 78,357 | 8,800 | ||||||
Zoetis, Inc. | 165,200 | 6,104 | ||||||
528,940 | ||||||||
Chemicals – 2.3% | ||||||||
Air Products & Chemicals, Inc. | 65,610 | 8,541 | ||||||
Airgas, Inc. | 22,321 | 2,470 | ||||||
Avery Dennison Corp. | 31,353 | 1,400 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 100 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.6% – continued | ||||||||
Chemicals – 2.3% – continued | ||||||||
CF Industries Holdings, Inc. | 17,141 | $4,786 | ||||||
Dow Chemical (The) Co. | 376,588 | 19,748 | ||||||
E.I. du Pont de Nemours & Co. | 303,515 | 21,780 | ||||||
Eastman Chemical Co. | 49,604 | 4,013 | ||||||
FMC Corp. | 44,330 | 2,535 | ||||||
International Flavors & Fragrances, Inc. | 27,000 | 2,589 | ||||||
LyondellBasell Industries N.V., Class A | 138,583 | 15,059 | ||||||
Monsanto Co. | 173,287 | 19,497 | ||||||
Mosaic (The) Co. | 106,896 | 4,747 | ||||||
PPG Industries, Inc. | 45,834 | 9,017 | ||||||
Praxair, Inc. | 96,854 | 12,494 | ||||||
Sherwin-Williams (The) Co. | 27,997 | 6,131 | ||||||
Sigma-Aldrich Corp. | 39,159 | 5,326 | ||||||
140,133 | ||||||||
Commercial Services – 0.3% | ||||||||
ADT (The) Corp. | 57,587 | 2,042 | ||||||
Cintas Corp. | 33,760 | 2,383 | ||||||
Ecolab, Inc. | 89,391 | 10,265 | ||||||
H&R Block, Inc. | 90,437 | 2,804 | ||||||
Robert Half International, Inc. | 45,757 | 2,242 | ||||||
19,736 | ||||||||
Construction Materials – 0.1% | ||||||||
Martin Marietta Materials, Inc. | 20,092 | 2,591 | ||||||
Vulcan Materials Co. | 43,457 | 2,617 | ||||||
5,208 | ||||||||
Consumer Products – 7.1% | ||||||||
Altria Group, Inc. | 654,559 | 30,070 | ||||||
Archer-Daniels-Midland Co. | 214,954 | 10,984 | ||||||
Avon Products, Inc. | 143,198 | 1,804 | ||||||
Brown-Forman Corp., Class B | 53,570 | 4,833 | ||||||
Campbell Soup Co. | 58,968 | 2,520 | ||||||
Clorox (The) Co. | 42,353 | 4,068 | ||||||
Coca-Cola (The) Co. | 1,298,793 | 55,407 | ||||||
Coca-Cola Enterprises, Inc. | 77,044 | 3,418 | ||||||
Colgate-Palmolive Co. | 285,783 | 18,639 | ||||||
ConAgra Foods, Inc. | 139,445 | 4,607 | ||||||
Constellation Brands, Inc., Class A * | 55,811 | 4,864 | ||||||
Dr Pepper Snapple Group, Inc. | 64,727 | 4,163 | ||||||
Estee Lauder (The) Cos., Inc., Class A | 78,299 | 5,851 | ||||||
General Mills, Inc. | 203,056 | 10,244 | ||||||
Hershey (The) Co. | 49,394 | 4,714 | ||||||
Hormel Foods Corp. | 44,447 | 2,284 | ||||||
JM Smucker (The) Co. | 34,224 | 3,388 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.6% – continued | ||||||||
Consumer Products – 7.1% – continued |
| |||||||
Kellogg Co. | 84,158 | $5,184 | ||||||
Keurig Green Mountain, Inc. | 41,970 | 5,462 | ||||||
Kimberly-Clark Corp. | 124,667 | 13,410 | ||||||
Kraft Foods Group, Inc. | 197,198 | 11,122 | ||||||
Lorillard, Inc. | 120,004 | 7,189 | ||||||
McCormick & Co., Inc. (Non Voting) | 42,900 | 2,870 | ||||||
Mead Johnson Nutrition Co. | 66,803 | 6,428 | ||||||
Molson Coors Brewing Co., Class B | 52,809 | 3,931 | ||||||
Mondelez International, Inc., Class A | 557,016 | 19,086 | ||||||
Monster Beverage Corp. * | 44,779 | 4,105 | ||||||
PepsiCo, Inc. | 500,041 | 46,549 | ||||||
Philip Morris International, Inc. | 518,864 | 43,273 | ||||||
Procter & Gamble (The) Co. | 893,700 | 74,838 | ||||||
Reynolds American, Inc. | 102,763 | 6,063 | ||||||
Tyson Foods, Inc., Class A | 97,230 | 3,828 | ||||||
425,196 | ||||||||
Containers & Packaging – 0.8% | ||||||||
3M Co. | 212,332 | 30,083 | ||||||
Ball Corp. | 46,113 | 2,918 | ||||||
Bemis Co., Inc. | 33,414 | 1,270 | ||||||
International Paper Co. | 143,100 | 6,832 | ||||||
MeadWestvaco Corp. | 55,446 | 2,270 | ||||||
Owens-Illinois, Inc. * | 54,277 | 1,414 | ||||||
Sealed Air Corp. | 64,603 | 2,253 | ||||||
47,040 | ||||||||
Design, Manufacturing & Distribution – 0.0% |
| |||||||
Jabil Circuit, Inc. | 62,149 | 1,254 | ||||||
Distributors – Consumer Staples – 0.1% | ||||||||
Sysco Corp. | 193,937 | 7,360 | ||||||
Distributors – Discretionary – 0.1% | ||||||||
Fastenal Co. | 90,140 | 4,047 | ||||||
Genuine Parts Co. | 50,501 | 4,430 | ||||||
8,477 | ||||||||
Electrical Equipment – 3.0% | ||||||||
Allegion PLC | 29,403 | 1,401 | ||||||
AMETEK, Inc. | 80,672 | 4,051 | ||||||
Amphenol Corp., Class A | 51,890 | 5,182 | ||||||
Dover Corp. | 55,021 | 4,420 | ||||||
Eaton Corp. PLC | 157,579 | 9,986 | ||||||
Emerson Electric Co. | 232,410 | 14,544 | ||||||
General Electric Co. | 3,308,185 | 84,756 | ||||||
Honeywell International, Inc. | 258,928 | 24,111 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 101 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
STOCK INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.6% – continued | ||||||||
Electrical Equipment – 3.0% – continued | ||||||||
Ingersoll-Rand PLC | 84,623 | $4,769 | ||||||
Rockwell Automation, Inc. | 45,751 | 5,027 | ||||||
Roper Industries, Inc. | 33,097 | 4,842 | ||||||
TE Connectivity Ltd. | 135,384 | 7,485 | ||||||
Tyco International Ltd. | 150,169 | 6,693 | ||||||
177,267 | ||||||||
Engineering & Construction Services – 0.1% |
| |||||||
Fluor Corp. | 52,589 | 3,512 | ||||||
Jacobs Engineering Group, Inc. * | 43,473 | 2,122 | ||||||
Quanta Services, Inc. * | 71,665 | 2,601 | ||||||
8,235 | ||||||||
Gaming, Lodging & Restaurants – 1.6% | ||||||||
Carnival Corp. | 144,471 | 5,803 | ||||||
Chipotle Mexican Grill, Inc. * | 10,276 | 6,850 | ||||||
Darden Restaurants, Inc. | 44,052 | 2,267 | ||||||
Marriott International, Inc., Class A | 72,734 | 5,084 | ||||||
McDonald’s Corp. | 325,729 | 30,882 | ||||||
Starbucks Corp. | 248,818 | 18,776 | ||||||
Starwood Hotels & Resorts Worldwide, Inc. | 63,416 | 5,277 | ||||||
Wyndham Worldwide Corp. | 42,029 | 3,415 | ||||||
Wynn Resorts Ltd. | 26,906 | 5,034 | ||||||
Yum! Brands, Inc. | 145,983 | 10,508 | ||||||
93,896 | ||||||||
Hardware – 5.5% | ||||||||
Apple, Inc. | 1,977,978 | 199,281 | ||||||
Cisco Systems, Inc. | 1,675,260 | 42,166 | ||||||
Corning, Inc. | 428,085 | 8,279 | ||||||
EMC Corp. | 661,425 | 19,353 | ||||||
F5 Networks, Inc. * | 24,924 | 2,959 | ||||||
FLIR Systems, Inc. | 46,718 | 1,464 | ||||||
Garmin Ltd. | 40,675 | 2,115 | ||||||
Harris Corp. | 35,328 | 2,346 | ||||||
Hewlett-Packard Co. | 615,889 | 21,846 | ||||||
Juniper Networks, Inc. | 145,596 | 3,225 | ||||||
Motorola Solutions, Inc. | 75,077 | 4,751 | ||||||
NetApp, Inc. | 106,636 | 4,581 | ||||||
Pitney Bowes, Inc. | 67,549 | 1,688 | ||||||
Seagate Technology PLC | 108,188 | 6,196 | ||||||
Western Digital Corp. | 70,044 | 6,817 | ||||||
327,067 | ||||||||
Health Care Facilities & Services – 2.1% | ||||||||
Aetna, Inc. | 118,190 | 9,573 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.6% – continued | ||||||||
Health Care Facilities & Services – 2.1% – continued |
| |||||||
AmerisourceBergen Corp. | 73,351 | $5,670 | ||||||
Cardinal Health, Inc. | 112,163 | 8,403 | ||||||
Cigna Corp. | 88,837 | 8,057 | ||||||
DaVita HealthCare Partners, Inc. * | 58,984 | 4,314 | ||||||
Express Scripts Holding Co. * | 250,520 | 17,694 | ||||||
Humana, Inc. | 51,184 | 6,669 | ||||||
Laboratory Corp. of America Holdings * | 28,086 | 2,858 | ||||||
McKesson Corp. | 76,249 | 14,843 | ||||||
Patterson Cos., Inc. | 26,712 | 1,107 | ||||||
Quest Diagnostics, Inc. | 47,637 | 2,891 | ||||||
Tenet Healthcare Corp. * | 32,296 | 1,918 | ||||||
UnitedHealth Group, Inc. | 322,858 | 27,846 | ||||||
Universal Health Services, Inc., Class B | 27,559 | 2,880 | ||||||
WellPoint, Inc. | 92,494 | 11,064 | ||||||
125,787 | ||||||||
Home & Office Products – 0.5% | ||||||||
DR Horton, Inc. | 106,051 | 2,176 | ||||||
Leggett & Platt, Inc. | 45,415 | 1,586 | ||||||
Lennar Corp., Class A | 57,940 | 2,250 | ||||||
Masco Corp. | 118,150 | 2,826 | ||||||
Mohawk Industries, Inc. * | 20,387 | 2,748 | ||||||
Newell Rubbermaid, Inc. | 91,916 | 3,163 | ||||||
PulteGroup, Inc. | 112,751 | 1,991 | ||||||
Snap-on, Inc. | 19,240 | 2,330 | ||||||
Stanley Black & Decker, Inc. | 51,517 | 4,574 | ||||||
Whirlpool Corp. | 25,754 | 3,751 | ||||||
27,395 | ||||||||
Industrial Services – 0.1% | ||||||||
United Rentals, Inc. * | 29,233 | 3,248 | ||||||
WW Grainger, Inc. | 20,226 | 5,090 | ||||||
8,338 | ||||||||
Institutional Financial Services – 1.5% | ||||||||
Bank of New York Mellon (The) Corp. | 374,905 | 14,520 | ||||||
CME Group, Inc. | 104,568 | 8,361 | ||||||
Goldman Sachs Group (The), Inc. | 137,039 | 25,156 | ||||||
Intercontinental Exchange, Inc. | 38,055 | 7,423 | ||||||
Morgan Stanley | 498,254 | 17,225 | ||||||
NASDAQ OMX Group (The), Inc. | 39,313 | 1,668 | ||||||
Northern Trust Corp. (1)(2) | 71,137 | 4,839 | ||||||
State Street Corp. | 142,836 | 10,514 | ||||||
89,706 | ||||||||
Insurance – 4.2% | ||||||||
ACE Ltd. | 111,665 | 11,710 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 102 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.6% – continued | ||||||||
Insurance – 4.2% – continued | ||||||||
Aflac, Inc. | 150,010 | $8,738 | ||||||
Allstate (The) Corp. | 143,507 | 8,807 | ||||||
American International Group, Inc. | 476,566 | 25,744 | ||||||
American International Group, Inc. (Fractional Shares) (3)* | 81,909 | – | ||||||
Ameriprise Financial, Inc. | 62,902 | 7,761 | ||||||
Aon PLC | 98,026 | 8,594 | ||||||
Assurant, Inc. | 23,871 | 1,535 | ||||||
Berkshire Hathaway, Inc., Class B * | 600,970 | 83,018 | ||||||
Chubb (The) Corp. | 80,769 | 7,356 | ||||||
Cincinnati Financial Corp. | 48,661 | 2,290 | ||||||
Genworth Financial, Inc., Class A * | 155,274 | 2,034 | ||||||
Hartford Financial Services Group (The), Inc. | 148,668 | 5,538 | ||||||
Lincoln National Corp. | 87,061 | 4,665 | ||||||
Loews Corp. | 101,178 | 4,215 | ||||||
Marsh & McLennan Cos., Inc. | 181,902 | 9,521 | ||||||
MetLife, Inc. | 370,345 | 19,895 | ||||||
Principal Financial Group, Inc. | 90,404 | 4,744 | ||||||
Progressive (The) Corp. | 180,710 | 4,568 | ||||||
Prudential Financial, Inc. | 152,963 | 13,452 | ||||||
Torchmark Corp. | 43,410 | 2,273 | ||||||
Travelers (The) Cos., Inc. | 114,915 | 10,795 | ||||||
Unum Group | 85,540 | 2,941 | ||||||
XL Group PLC | 89,157 | 2,957 | ||||||
253,151 | ||||||||
Iron & Steel – 0.1% | ||||||||
Allegheny Technologies, Inc. | 35,834 | 1,329 | ||||||
Nucor Corp. | 105,138 | 5,707 | ||||||
7,036 | ||||||||
Leisure Products – 0.1% | ||||||||
Hasbro, Inc. | 38,130 | 2,097 | ||||||
Mattel, Inc. | 112,200 | 3,439 | ||||||
5,536 | ||||||||
Machinery – 1.0% | ||||||||
Caterpillar, Inc. | 206,408 | 20,441 | ||||||
Deere & Co. | 119,060 | 9,762 | ||||||
Flowserve Corp. | 45,079 | 3,179 | ||||||
Illinois Tool Works, Inc. | 123,974 | 10,466 | ||||||
Joy Global, Inc. | 32,898 | 1,794 | ||||||
Parker Hannifin Corp. | 49,238 | 5,620 | ||||||
Pentair PLC | 64,354 | 4,215 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.6% – continued | ||||||||
Machinery – 1.0% – continued | ||||||||
Xylem, Inc. | 60,843 | $2,159 | ||||||
57,636 | ||||||||
Media – 6.8% | ||||||||
Alliance Data Systems Corp. * | 17,920 | 4,449 | ||||||
Cablevision Systems Corp., Class A (New York Group) | 72,556 | 1,270 | ||||||
CBS Corp., Class B (Non Voting) | 159,361 | 8,526 | ||||||
Comcast Corp., Class A | 857,777 | 46,131 | ||||||
DIRECTV * | 162,770 | 14,083 | ||||||
Discovery Communications, Inc., Class A * | 56,228 | 2,125 | ||||||
Discovery Communications, Inc., Class C * | 82,863 | 3,089 | ||||||
Expedia, Inc. | 33,755 | 2,958 | ||||||
Facebook, Inc., Class A * | 644,452 | 50,937 | ||||||
Gannett Co., Inc. | 75,086 | 2,228 | ||||||
Google, Inc., Class A * | 93,673 | 55,118 | ||||||
Google, Inc., Class C * | 93,673 | 54,083 | ||||||
Interpublic Group of (The) Cos., Inc. | 139,574 | 2,557 | ||||||
News Corp., Class A * | 164,420 | 2,688 | ||||||
Omnicom Group, Inc. | 85,691 | 5,901 | ||||||
Priceline Group (The), Inc. * | 17,341 | 20,091 | ||||||
Scripps Networks Interactive, Inc., Class A | 35,392 | 2,764 | ||||||
Time Warner Cable, Inc. | 92,113 | 13,217 | ||||||
Time Warner, Inc. | 286,557 | 21,552 | ||||||
TripAdvisor, Inc. * | 37,727 | 3,449 | ||||||
Twenty-First Century Fox, Inc., Class A | 614,626 | 21,076 | ||||||
VeriSign, Inc. * | 41,273 | 2,275 | ||||||
Viacom, Inc., Class B | 127,994 | 9,848 | ||||||
Walt Disney (The) Co. | 525,611 | 46,795 | ||||||
Yahoo!, Inc. * | 304,614 | 12,413 | ||||||
409,623 | ||||||||
Medical Equipment & Devices – 2.7% | ||||||||
Abbott Laboratories | 496,559 | 20,652 | ||||||
Agilent Technologies, Inc. | 110,585 | 6,301 | ||||||
Baxter International, Inc. | 179,491 | 12,882 | ||||||
Becton Dickinson and Co. | 64,040 | 7,288 | ||||||
Boston Scientific Corp. * | 428,291 | 5,058 | ||||||
CareFusion Corp. * | 68,037 | 3,079 | ||||||
Covidien PLC | 149,084 | 12,897 | ||||||
CR Bard, Inc. | 25,180 | 3,594 | ||||||
Danaher Corp. | 198,895 | 15,112 | ||||||
DENTSPLY International, Inc. | 46,842 | 2,136 | ||||||
Edwards Lifesciences Corp.* | 34,586 | 3,533 | ||||||
Intuitive Surgical, Inc. * | 11,887 | 5,490 | ||||||
Medtronic, Inc. | 328,441 | 20,347 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 103 | EQUITY INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
STOCK INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.6% – continued | ||||||||
Medical Equipment & Devices – 2.7% – continued |
| |||||||
Pall Corp. | 36,354 | $3,043 | ||||||
PerkinElmer, Inc. | 37,735 | 1,645 | ||||||
St. Jude Medical, Inc. | 94,168 | 5,662 | ||||||
Stryker Corp. | 97,885 | 7,904 | ||||||
Thermo Fisher Scientific, Inc. | 131,858 | 16,047 | ||||||
Varian Medical Systems, Inc. * | 34,645 | 2,776 | ||||||
Waters Corp. * | 28,162 | 2,792 | ||||||
Zimmer Holdings, Inc. | 55,467 | 5,577 | ||||||
163,815 | ||||||||
Metals & Mining – 0.4% | ||||||||
Alcoa, Inc. | 373,354 | 6,007 | ||||||
Freeport-McMoRan, Inc. | 340,435 | 11,115 | ||||||
Newmont Mining Corp. | 160,300 | 3,695 | ||||||
20,817 | ||||||||
Oil, Gas & Coal – 9.4% | ||||||||
Anadarko Petroleum Corp. | 167,001 | 16,941 | ||||||
Apache Corp. | 127,556 | 11,974 | ||||||
Baker Hughes, Inc. | 143,898 | 9,362 | ||||||
Cabot Oil & Gas Corp. | 137,584 | 4,498 | ||||||
Cameron International Corp. * | 67,215 | 4,462 | ||||||
Chesapeake Energy Corp. | 167,410 | 3,849 | ||||||
Chevron Corp. | 628,677 | 75,014 | ||||||
Cimarex Energy Co. | 28,779 | 3,641 | ||||||
ConocoPhillips | 405,992 | 31,066 | ||||||
CONSOL Energy, Inc. | 75,583 | 2,862 | ||||||
Denbury Resources, Inc. | 116,971 | 1,758 | ||||||
Devon Energy Corp. | 126,809 | 8,646 | ||||||
Diamond Offshore Drilling, Inc. | 22,909 | 785 | ||||||
Ensco PLC, Class A | 77,308 | 3,194 | ||||||
EOG Resources, Inc. | 180,711 | 17,894 | ||||||
EQT Corp. | 50,181 | 4,593 | ||||||
Exxon Mobil Corp. | 1,413,760 | 132,964 | ||||||
FMC Technologies, Inc. * | 78,157 | 4,245 | ||||||
Halliburton Co. | 279,286 | 18,017 | ||||||
Helmerich & Payne, Inc. | 35,761 | 3,500 | ||||||
Hess Corp. | 87,310 | 8,235 | ||||||
Kinder Morgan, Inc. | 209,954 | 8,050 | ||||||
Marathon Oil Corp. | 221,046 | 8,309 | ||||||
Marathon Petroleum Corp. | 95,447 | 8,081 | ||||||
Murphy Oil Corp. | 55,621 | 3,165 | ||||||
Nabors Industries Ltd. | 94,182 | 2,144 | ||||||
National Oilwell Varco, Inc. | 141,887 | 10,798 | ||||||
Newfield Exploration Co. * | 44,848 | 1,662 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.6% – continued | ||||||||
Oil, Gas & Coal – 9.4% – continued | ||||||||
Noble Corp. PLC | 80,069 | $1,779 | ||||||
Noble Energy, Inc. | 118,599 | 8,107 | ||||||
Occidental Petroleum Corp. | 258,771 | 24,881 | ||||||
ONEOK, Inc. | 68,385 | 4,483 | ||||||
Phillips 66 | 187,118 | 15,214 | ||||||
Pioneer Natural Resources Co. | 47,300 | 9,317 | ||||||
QEP Resources, Inc. | 60,194 | 1,853 | ||||||
Range Resources Corp. | 55,771 | 3,782 | ||||||
Schlumberger Ltd. | 429,817 | 43,708 | ||||||
Southwestern Energy Co. * | 117,211 | 4,096 | ||||||
Spectra Energy Corp. | 222,083 | 8,719 | ||||||
Tesoro Corp. | 42,748 | 2,607 | ||||||
Transocean Ltd. | 109,207 | 3,491 | ||||||
Valero Energy Corp. | 174,370 | 8,068 | ||||||
Williams (The) Cos., Inc. | 227,450 | 12,589 | ||||||
562,403 | ||||||||
Passenger Transportation – 0.3% | ||||||||
Delta Air Lines, Inc. | 277,680 | 10,038 | ||||||
Southwest Airlines Co. | 225,645 | 7,620 | ||||||
17,658 | ||||||||
Real Estate – 0.0% | ||||||||
CBRE Group, Inc., Class A * | 91,708 | 2,727 | ||||||
Real Estate Investment Trusts – 2.1% | ||||||||
American Tower Corp. | 130,750 | 12,242 | ||||||
Apartment Investment & Management Co., Class A | 48,263 | 1,536 | ||||||
AvalonBay Communities, Inc. | 41,379 | 5,833 | ||||||
Boston Properties, Inc. | 50,760 | 5,876 | ||||||
Crown Castle International Corp. | 110,265 | 8,880 | ||||||
Equity Residential | 114,973 | 7,080 | ||||||
Essex Property Trust, Inc. | 20,582 | 3,679 | ||||||
General Growth Properties, Inc. | 195,462 | 4,603 | ||||||
HCP, Inc. | 151,577 | 6,019 | ||||||
Health Care REIT, Inc. | 106,124 | 6,619 | ||||||
Host Hotels & Resorts, Inc. | 250,107 | 5,335 | ||||||
Iron Mountain, Inc. | 55,924 | 1,826 | ||||||
Kimco Realty Corp. | 135,269 | 2,964 | ||||||
Macerich (The) Co. | 46,431 | 2,964 | ||||||
Plum Creek Timber Co., Inc. | 58,955 | 2,300 | ||||||
ProLogis, Inc. | 165,694 | 6,247 | ||||||
Public Storage | 47,949 | 7,952 | ||||||
Simon Property Group, Inc. | 102,491 | 16,851 | ||||||
Ventas, Inc. | 97,605 | 6,047 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 104 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.6% – continued | ||||||||
Real Estate Investment Trusts – 2.1% – continued |
| |||||||
Vornado Realty Trust | 57,839 | $5,781 | ||||||
Weyerhaeuser Co. | 174,089 | 5,546 | ||||||
126,180 | ||||||||
Renewable Energy – 0.0% | ||||||||
First Solar, Inc. * | 23,449 | 1,543 | ||||||
Retail – Consumer Staples – 2.5% | ||||||||
Costco Wholesale Corp. | 144,776 | 18,143 | ||||||
CVS Health Corp. | 385,361 | 30,671 | ||||||
Dollar General Corp. * | 98,637 | 6,028 | ||||||
Dollar Tree, Inc. * | 68,778 | 3,856 | ||||||
Family Dollar Stores, Inc. | 31,810 | 2,457 | ||||||
Kroger (The) Co. | 166,505 | 8,658 | ||||||
Safeway, Inc. | 75,808 | 2,600 | ||||||
Target Corp. | 209,324 | 13,121 | ||||||
Walgreen Co. | 286,717 | 16,994 | ||||||
Wal-Mart Stores, Inc. | 526,146 | 40,234 | ||||||
Whole Foods Market, Inc. | 119,328 | 4,548 | ||||||
147,310 | ||||||||
Retail – Discretionary – 3.5% | ||||||||
Amazon.com, Inc. * | 125,045 | 40,320 | ||||||
AutoNation, Inc. * | 20,807 | 1,047 | ||||||
AutoZone, Inc. * | 10,972 | 5,592 | ||||||
Bed Bath & Beyond, Inc. * | 67,418 | 4,438 | ||||||
Best Buy Co., Inc. | 91,087 | 3,060 | ||||||
CarMax, Inc. * | 72,797 | 3,381 | ||||||
Coach, Inc. | 90,923 | 3,238 | ||||||
eBay, Inc. * | 367,969 | 20,838 | ||||||
GameStop Corp., Class A | 38,094 | 1,569 | ||||||
Gap (The), Inc. | 85,658 | 3,571 | ||||||
Home Depot (The), Inc. | 448,454 | 41,141 | ||||||
Kohl’s Corp. | 64,236 | 3,920 | ||||||
L Brands, Inc. | 81,320 | 5,447 | ||||||
Lowe’s Cos., Inc. | 327,788 | 17,347 | ||||||
Macy’s, Inc. | 117,365 | 6,828 | ||||||
Netflix, Inc. * | 19,824 | 8,944 | ||||||
Nordstrom, Inc. | 46,749 | 3,196 | ||||||
O’Reilly Automotive, Inc. * | 35,181 | 5,290 | ||||||
PetSmart, Inc. | 32,788 | 2,298 | ||||||
Ross Stores, Inc. | 70,089 | 5,297 | ||||||
Staples, Inc. | 205,613 | 2,488 | ||||||
Tiffany & Co. | 36,827 | 3,547 | ||||||
TJX (The) Cos., Inc. | 229,817 | 13,598 | ||||||
Tractor Supply Co. | 45,758 | 2,815 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.6% – continued | ||||||||
Retail – Discretionary – 3.5% – continued |
| |||||||
Urban Outfitters, Inc. * | 33,621 | $1,234 | ||||||
210,444 | ||||||||
Semiconductors – 3.2% | ||||||||
Altera Corp. | 104,133 | 3,726 | ||||||
Analog Devices, Inc. | 103,757 | 5,135 | ||||||
Applied Materials, Inc. | 395,940 | 8,556 | ||||||
Avago Technologies Ltd. | 83,201 | 7,239 | ||||||
Broadcom Corp., Class A | 181,212 | 7,325 | ||||||
Intel Corp. | 1,629,469 | 56,738 | ||||||
KLA-Tencor Corp. | 54,761 | 4,314 | ||||||
Lam Research Corp. | 53,859 | 4,023 | ||||||
Linear Technology Corp. | 78,129 | 3,468 | ||||||
Microchip Technology, Inc. | 66,196 | 3,127 | ||||||
Micron Technology, Inc. * | 357,124 | 12,235 | ||||||
NVIDIA Corp. | 179,561 | 3,313 | ||||||
QUALCOMM, Inc. | 556,772 | 41,630 | ||||||
SanDisk Corp. | 74,970 | 7,343 | ||||||
Texas Instruments, Inc. | 354,610 | 16,911 | ||||||
Xilinx, Inc. | 89,020 | 3,770 | ||||||
188,853 | ||||||||
Software – 3.8% | ||||||||
Adobe Systems, Inc. * | 153,165 | 10,597 | ||||||
Autodesk, Inc. * | 75,618 | 4,167 | ||||||
CA, Inc. | 104,797 | 2,928 | ||||||
Cerner Corp. * | 97,349 | 5,799 | ||||||
Citrix Systems, Inc. * | 53,938 | 3,848 | ||||||
Electronic Arts, Inc. * | 104,003 | 3,704 | ||||||
Intuit, Inc. | 93,963 | 8,236 | ||||||
Microsoft Corp. | 2,719,604 | 126,081 | ||||||
Oracle Corp. | 1,082,431 | 41,435 | ||||||
Red Hat, Inc. * | 62,519 | 3,510 | ||||||
salesforce.com, Inc. * | 189,795 | 10,919 | ||||||
Symantec Corp. | 223,983 | 5,266 | ||||||
Teradata Corp. * | 52,394 | 2,196 | ||||||
228,686 | ||||||||
Specialty Finance – 2.1% | ||||||||
American Express Co. | 299,728 | 26,238 | ||||||
Capital One Financial Corp. | 187,770 | 15,326 | ||||||
Discover Financial Services | 154,132 | 9,925 | ||||||
Fidelity National Information Services, Inc. | 95,435 | 5,373 | ||||||
Fiserv, Inc. * | 82,339 | 5,322 | ||||||
MasterCard, Inc., Class A | 329,417 | 24,350 | ||||||
Navient Corp. | 140,123 | 2,482 |
See Notes to the Financial Statements.
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Table of Contents
SCHEDULE OF INVESTMENTS
STOCK INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.6% – continued | ||||||||
Specialty Finance – 2.1% – continued | ||||||||
Total System Services, Inc. | 55,083 | $1,705 | ||||||
Visa, Inc., Class A | 164,185 | 35,032 | ||||||
Western Union (The) Co. | 173,129 | 2,777 | ||||||
128,530 | ||||||||
Technology Services – 2.2% | ||||||||
Accenture PLC, Class A | 209,067 | 17,001 | ||||||
Automatic Data Processing, Inc. | 159,329 | 13,237 | ||||||
Cognizant Technology Solutions Corp., Class A * | 198,912 | 8,905 | ||||||
Computer Sciences Corp. | 47,842 | 2,926 | ||||||
Dun & Bradstreet (The) Corp. | 12,319 | 1,447 | ||||||
Equifax, Inc. | 40,702 | 3,042 | ||||||
International Business Machines Corp. | 308,378 | 58,539 | ||||||
McGraw Hill Financial, Inc. | 90,077 | 7,607 | ||||||
Moody’s Corp. | 62,081 | 5,867 | ||||||
Nielsen N.V. | 99,762 | 4,423 | ||||||
Paychex, Inc. | 107,455 | 4,750 | ||||||
Xerox Corp. | 353,620 | 4,678 | ||||||
132,422 | ||||||||
Telecom – 2.4% | ||||||||
Akamai Technologies, Inc. * | 58,839 | 3,519 | ||||||
AT&T, Inc. | 1,707,216 | 60,162 | ||||||
CenturyLink, Inc. | 188,851 | 7,722 | ||||||
Frontier Communications Corp. | 318,744 | 2,075 | ||||||
Verizon Communications, Inc. | 1,365,597 | 68,266 | ||||||
Windstream Holdings, Inc. | 192,178 | 2,072 | ||||||
143,816 | ||||||||
Transportation & Logistics – 1.7% | ||||||||
C.H. Robinson Worldwide, Inc. | 48,764 | 3,234 | ||||||
CSX Corp. | 329,250 | 10,556 | ||||||
Expeditors International of Washington, Inc. | 65,227 | 2,647 | ||||||
FedEx Corp. | 89,690 | 14,481 | ||||||
Kansas City Southern | 36,479 | 4,421 | ||||||
Norfolk Southern Corp. | 102,428 | 11,431 | ||||||
Ryder System, Inc. | 17,687 | 1,591 | ||||||
Union Pacific Corp. | 298,644 | 32,379 | ||||||
United Parcel Service, Inc., Class B | 233,059 | 22,907 | ||||||
103,647 | ||||||||
Transportation Equipment – 0.2% | ||||||||
Cummins, Inc. | 56,535 | 7,461 | ||||||
PACCAR, Inc. | 117,588 | 6,688 | ||||||
14,149 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.6% – continued | ||||||||
Utilities – 2.9% | ||||||||
AES Corp. | 218,758 | $3,102 | ||||||
AGL Resources, Inc. | 39,659 | 2,036 | ||||||
Ameren Corp. | 80,028 | 3,067 | ||||||
American Electric Power Co., Inc. | 161,578 | 8,436 | ||||||
CenterPoint Energy, Inc. | 141,483 | 3,462 | ||||||
CMS Energy Corp. | 89,405 | 2,652 | ||||||
Consolidated Edison, Inc. | 96,682 | 5,478 | ||||||
Dominion Resources, Inc. | 192,218 | 13,280 | ||||||
DTE Energy Co. | 58,419 | 4,445 | ||||||
Duke Energy Corp. | 233,737 | 17,477 | ||||||
Edison International | 107,451 | 6,009 | ||||||
Entergy Corp. | 59,517 | 4,602 | ||||||
Exelon Corp. | 280,971 | 9,578 | ||||||
FirstEnergy Corp. | 138,134 | 4,637 | ||||||
Integrys Energy Group, Inc. | 26,578 | 1,723 | ||||||
NextEra Energy, Inc. | 144,130 | 13,531 | ||||||
NiSource, Inc. | 104,442 | 4,280 | ||||||
Northeast Utilities | 104,944 | 4,649 | ||||||
NRG Energy, Inc. | 111,388 | 3,395 | ||||||
Pepco Holdings, Inc. | 83,187 | 2,226 | ||||||
PG&E Corp. | 153,586 | 6,918 | ||||||
Pinnacle West Capital Corp. | 36,873 | 2,015 | ||||||
PPL Corp. | 219,688 | 7,215 | ||||||
Public Service Enterprise Group, Inc. | 166,712 | 6,208 | ||||||
SCANA Corp. | 47,207 | 2,342 | ||||||
Sempra Energy | 75,378 | 7,943 | ||||||
Southern (The) Co. | 294,190 | 12,841 | ||||||
TECO Energy, Inc. | 77,149 | 1,341 | ||||||
Wisconsin Energy Corp. | 74,892 | 3,220 | ||||||
Xcel Energy, Inc. | 165,743 | 5,039 | ||||||
173,147 | ||||||||
Waste & Environment Services & Equipment – 0.2% |
| |||||||
Republic Services, Inc. | 88,111 | 3,438 | ||||||
Stericycle, Inc. * | 27,960 | 3,259 | ||||||
Waste Management, Inc. | 142,922 | 6,793 | ||||||
13,490 | ||||||||
Total Common Stocks | ||||||||
(Cost $3,420,715) | 5,795,578 |
See Notes to the Financial Statements.
EQUITY INDEX FUNDS | 106 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
INVESTMENT COMPANIES – 3.0% | ||||||||
Northern Institutional Funds – Diversified Assets Portfolio, 0.01% (4)(5) | 178,498,076 | $178,498 | ||||||
Total Investment Companies | ||||||||
(Cost $178,498) | 178,498 | |||||||
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
SHORT-TERM INVESTMENTS – 0.2% | ||||||||
U. S. Treasury Bill, | ||||||||
0.03%, 10/2/14 (6) | $13,245 | $13,245 | ||||||
0.02%, 4/30/15 (6) | 100 | 100 | ||||||
Total Short-Term Investments | ||||||||
(Cost $13,345) | 13,345 | |||||||
Total Investments – 99.8% | ||||||||
(Cost $3,612,558) | 5,987,421 | |||||||
Other Assets less Liabilities – 0.2% |
| 9,485 | ||||||
NET ASSETS – 100.0% | $5,996,906 |
(1) | At March 31, 2014, the value of the Fund’s investment in Northern Trust Corp. was approximately $4,664,000. There were no purchases and sales during the six months ended September 30, 2014. The change in net unrealized appreciation during the six months ended September 30, 2014, was approximately $175,000. |
(2) | Investment in affiliate. |
(3) | Level 3 asset that is worthless, bankrupt or has been delisted. |
(4) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
(5) | At March 31, 2014, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $120,845,000 with net purchases of approximately $57,653,000 during the six months ended September 30, 2014. |
(6) | Security pledged as collateral to cover margin requirements for open futures contracts. |
* | Non-Income Producing Security |
Percentages shown are based on Net Assets.
At September 30, 2014, the Fund had open futures contracts as follows:
TYPE | NUMBER OF CONTRACTS | NOTIONAL AMOUNT (000s) | CONTRACT POSITION | CONTRACT EXP. | UNREALIZED GAINS (LOSSES) (000s) | |||||||||||||||
E-Mini S&P 500 | 2,050 | $201,464 | Long | 12/14 | $(1,993) |
At September 30, 2014, the industry sectors for the Fund were :
INDUSTRY SECTOR | % OF LONG-TERM INVESTMENTS | |||
Consumer Discretionary | 11.7% | |||
Consumer Staples | 9.6 | |||
Energy | 9.7 | |||
Financials | 16.3 | |||
Health Care | 13.9 | |||
Industrials | 10.3 | |||
Information Technology | 19.6 | |||
Materials | 3.5 | |||
Telecommunication Services | 2.4 | |||
Utilities | 3.0 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Common Stocks | $5,795,578 | (1) | $ – | $– | $5,795,578 | |||||||||||
Investment Companies | 178,498 | – | – | 178,498 | ||||||||||||
Short-Term Investments | – | 13,345 | – | 13,345 | ||||||||||||
Total Investments | $5,974,076 | $13,345 | $– | $5,987,421 | ||||||||||||
OTHER FINANCIAL INSTRUMENTS |
| |||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $(1,993) | $ – | $– | $(1,993) |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
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Table of Contents
EQUITY INDEX FUNDS
NOTES TO THE FINANCIAL STATEMENTS
1. ORGANIZATION
Northern Funds (the “Trust”) is a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust offers 48 funds as of September 30, 2014, each with its own investment objective (e.g., long-term capital appreciation, total return or income consistent with preservation of capital). The Emerging Markets Equity Index, Global Real Estate Index, Global Sustainability Index, International Equity Index, Mid Cap Index, Small Cap Index, and Stock Index Funds (each a “Fund” and collectively, the “Funds”) are separate, diversified investment portfolios of the Trust. Each of the Funds is presented herein.
Northern Trust Investments, Inc. (“NTI”), a subsidiary of The Northern Trust Company (“Northern Trust”), serves as the investment adviser for the Funds. Northern Trust serves as the custodian and transfer agent for the Trust. NTI serves as the Trust’s administrator. Northern Funds Distributors, LLC is the Trust’s distributor.
2. SIGNIFICANT ACCOUNTING POLICIES
The Trust, which is an investment company within the scope of Financial Accounting Standards Board (“FASB”) Accounting Standards Update 2013-08, follows accounting and reporting guidance under FASB Accounting Standards Codification Topic 946, “Financial Services-Investment Companies.”
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“U.S.”), or “U.S. GAAP.” The preparation of financial statements in conformity with U.S. 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 may differ from those estimates.
The net asset value (“NAV”) of each Fund is determined daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), generally 3:00 P.M. Central Time, on each day the NYSE is open for trading.
A) VALUATION OF SECURITIES AND DERIVATIVE CONTRACTS Securities are valued at their fair value. Securities traded on U.S. securities exchanges or in the NASDAQ National Market System are principally valued at the regular trading session closing price (generally, 3:00 P.M. Central Time) on the exchange or market in which such securities are principally traded. If any such security is not traded on a valuation date, it is valued at the most recent quoted bid price. Over-the-counter securities not reported in the NASDAQ National Market System are also generally valued at the most recent quoted bid price. Fixed income securities, however, may be valued on the basis of evaluated prices provided by independent pricing services when such prices are believed to reflect the fair value of such securities or broker-provided prices. Such prices may be determined by taking into account other similar securities’ prices, yields, maturities, call features, ratings, institutional size trading in similar groups of securities and developments related to specific securities.
The values of securities of foreign issuers are generally based upon market quotations which, depending upon local convention or regulation, may be the last sale price, the last bid price or the mean between the last bid and asked price as of, in each case, the close of the appropriate exchange or other designated time. Foreign fixed income securities, however, may, like domestic fixed income securities, be valued based on evaluated prices provided by independent pricing services when such prices are believed to reflect the fair value of such securities.
Shares of open-end investment companies are valued at their NAV. Spot and forward foreign currency exchange contracts are generally valued using an independent pricing service. Exchange-traded financial futures and options are valued at the settlement price as established by the exchange on which they are traded. The foregoing prices may be obtained from one or more independent pricing services or, as needed or applicable, independent broker-dealers. Short-term investments with a maturity of 60 days or less are valued at their amortized cost, which NTI, as authorized by the Board of Trustees (the “Board”), has determined approximates fair value.
Any securities for which market quotations are not readily available or are believed to be incorrect are valued at fair value as determined in good faith by NTI under the supervision of the Board. The Trust, in its discretion, may make adjustments to the prices of securities held by a Fund if an event occurs after the publication of fair values normally used by the Fund but before the time as of which the Fund calculates its NAV, depending on the nature and significance of the event, consistent with applicable regulatory guidance and U.S. GAAP. This may occur particularly with respect to certain foreign securities held by a Fund, in which case the Trust may use adjustment factors obtained from an independent evaluation service that are intended to reflect more accurately the fair value of those securities as of the time the Fund’s NAV is calculated.
Northern Trust’s Pricing Unit (the “NT Pricing Unit”) is responsible for supplying a value for each portfolio security used in the NAV computations. Securities or other assets for which market quotations are not readily available or for which market quotations do not represent the value at the time of pricing are fair
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EQUITY INDEX FUNDS
SEPTEMBER 30, 2014 (UNAUDITED) |
valued in accordance with policies and procedures established by, and subject to oversight of, the Funds’ Board. NTI has established a pricing and valuation committee (the “Asset Management PVC”) whose membership includes representatives of NTI, as well as independent control personnel from Northern Trust’s Legal and Fund Administration and NTI’s Compliance and Risk Management groups. The Asset Management PVC is responsible for the fair valuation of portfolio securities and the monitoring of the fair valuation process, subject to the Board’s oversight.
The Asset Management PVC is responsible for making the determination of the fair value of a security. In making its determination, the Asset Management PVC considers factors that it deems appropriate to the determination of the fair value of the security. Such factors include, but are not limited to, the type of security; the current financial position of the issuer; the cost of the investment; information as to any transactions or offers with respect to a security; market value of a similar freely-traded security; and news events. NTI will continue to monitor markets and the issuer’s circumstances that affect a security’s valuation to determine the continued appropriateness of a security’s fair valuation. The Asset Management PVC will review if the markets and issuer’s circumstances relevant to the valuation of a fair valued security change materially.
For each Level 3 security, if any, that has been fair valued pursuant to the policies adopted by the Board, the fair value price is compared against the last available and next available market quotations. The results of such back testing and fair valued securities are reported quarterly to the Valuation Committee of the Board.
The use of fair valuation involves the risk that the values used by the Funds to price their investments may be higher or lower than the values used by other unaffiliated investment companies and investors to price the same investments.
B) FUTURES CONTRACTS Certain Funds invest in long or short futures contracts for hedging purposes, to increase total return (i.e., for speculative purposes) or to maintain liquidity. When used as a hedge, a Fund may sell a futures contract in order to offset a decrease in the fair value of its portfolio securities that might otherwise result from a market decline. A Fund may do so either to hedge the value of its portfolio securities as a whole, or to protect against declines occurring prior to sales of securities in the value of the securities to be sold. Conversely, a Fund may purchase a futures contract as a hedge in anticipation of purchases of securities. In addition, a Fund may utilize futures contracts in anticipation of changes in the composition of its portfolio holdings. 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 generally required to make a margin deposit with the custodian of a specified amount of liquid assets. Futures are marked to market each day with the change in value reflected in the unrealized gains or losses. Risk may arise as a result of the potential inability of the counterparties to meet the terms of their contracts. Credit risk is mitigated to the extent that the exchange on which a particular futures contract is traded assumes the risk of a counterparty defaulting on its obligations under the contract. The Statements of Operations include any realized gains or losses, on closed futures contracts in Net realized gains (losses) on futures contracts, and any unrealized gains or losses on open futures contracts, in Net change in unrealized appreciation (depreciation) on futures contracts.
At September 30, 2014, the Mid Cap Index, Small Cap Index, and Stock Index Funds had entered into exchange-traded long futures contracts. The aggregate fair value of securities pledged to cover margin requirements for open positions was approximately $2,815,000, $1,655,000 and $13,345,000, respectively. The Emerging Markets Equity Index, Global Real Estate Index, Global Sustainability Index and International Equity Index Funds had entered into exchange-traded long futures contracts at September 30, 2014. The aggregate fair value of cash and foreign currencies to cover margin requirements for open positions was approximately $2,174,000, $1,452,000, $180,000 and $3,896,000, respectively. Further information on the impact of these positions on the Funds’ financial statements can be found in Note 9.
C) FOREIGN CURRENCY TRANSLATION Values of investments denominated in foreign currencies are converted into U.S. dollars using the spot rates on the NYSE, generally at 3:00 P.M. Central Time. The cost of purchases and proceeds from sales of investments, interest and dividend income are translated into U.S. dollars using the spot rates on the NYSE, generally at 3:00 P.M. Central Time. The gains or losses, if any, on investments resulting from changes in foreign exchange rates are included in the Statements of Operations in Net realized gains (losses) on investments and Net change in unrealized appreciation (depreciation) on investments. The gains or losses, if any, on translation of other assets and liabilities denominated in foreign currencies are included in Net realized gains (losses) on foreign currency transactions and Net change in unrealized appreciation (depreciation) on foreign currency translations in the Statements of Operations.
D) 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
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EQUITY INDEX FUNDS
NOTES TO THE FINANCIAL STATEMENTS continued
currency denominated securities will decline in value due to changes in foreign currency exchange rates. All forward foreign currency exchange contracts are “marked-to-market” daily at the applicable exchange rates. Any resulting unrealized gains or losses are recorded in Net change in unrealized appreciation (depreciation) on foreign currency translations in the Statements of Operations. A Fund records realized gains or losses at the time the forward foreign currency exchange contract is offset by entering into a closing transaction with the same counterparty or is extinguished by delivery of the currency. Realized gains or losses, if any, are included in Net realized gains (losses) on foreign currency transactions in the Statements of Operations.
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. The Funds bear the market risk from changes in forward foreign currency exchange rates and the credit risk if the counterparty to the contract fails to perform. Further information on the impact of these positions on the Funds’ financial statements can be found in Note 9.
E) INVESTMENT TRANSACTIONS AND INCOME Investment transactions are recorded as of the trade date. The Funds determine the gain or loss realized from investment transactions by using an identified cost basis method. Interest income is recognized on an accrual basis and includes amortization of premiums and accretion of discounts using the effective yield method. The interest rates reflected in the Schedules of Investments represent either the stated coupon rate, annualized yield on date of purchase for discount notes, the current reset rate for floating rate securities, the 7-day yield for money market funds or, for interest-only or principal-only securities, the current effective yield. Cost of investments includes amortization of premiums and accretion of discounts, if any. Dividend income is recognized on the ex-dividend date. Dividends from foreign securities are recorded on the ex-dividend date, or as soon as the information is available. Distributions received from a Fund’s investments in real estate investment trusts (“REITs”) are comprised of return of capital, capital gains and income. The actual character of the amounts received during the year is not known until the fiscal year end. A Fund records the character of distributions received from the REITs during the year based on estimates available. A Fund’s characterization may be subsequently revised based on information received from the REITs after their tax reporting periods conclude.
F) EXPENSES Each Fund is charged for those expenses that are directly attributable to that Fund. Expenses incurred which do not specifically relate to an individual Fund are allocated among all Funds in the Trust in proportion to each Fund’s relative net assets.
G) REDEMPTION FEES The Emerging Markets Equity Index, Global Real Estate Index, Global Sustainability Index, and International Equity Index Funds charge a 2 percent redemption fee on the redemption of shares (including by exchange) held for 30 days or less. For the purpose of applying the fee, the Funds use a first-in, first-out (“FIFO”) method so that shares held longest are treated as being redeemed first and shares held shortest are treated as being redeemed last. The redemption fee is paid to the Funds and is intended to offset the trading, market impact and other costs associated with short-term money movements in and out of the Funds. The redemption fee may be collected by deduction from the redemption proceeds or, if assessed after the redemption transaction, through a separate billing. The redemption fee does not apply to certain types of redemptions as described in the Funds’ prospectus.
Redemption fees were approximately $2,000 and $1,000 for the six months ended September 30, 2014, for the Emerging Markets Equity Index and Global Real Estate Index Funds, respectively. Redemption fees were less than $500 for the six months ended September 30, 2014, for the Global Sustainability Index Fund and International Equity Index Fund. Redemption fees were approximately $2,000, $2,000 and $1,000 for the fiscal year ended March 31, 2014, for the Emerging Markets Equity Index, Global Real Estate Index and Global Sustainability Index Funds, respectively. Redemption fees were less than $500 for the fiscal year ended March 31, 2014, for the International Equity Index Fund. These amounts are included in Payments for Shares Redeemed in Note 8 — Capital Share Transactions. The impact from redemption fees paid to the Funds was less than $0.001 per share.
H) DISTRIBUTIONS TO SHAREHOLDERS Distributions of dividends from net investment income, if any, are declared and paid as follows:
DECLARATION AND PAYMENT FREQUENCY | ||||
Emerging Markets Equity Index | Annually | |||
Global Real Estate Index | Quarterly | |||
Global Sustainability Index | Annually | |||
International Equity Index | Annually | |||
Mid Cap Index | Annually | |||
Small Cap Index | Annually | |||
Stock Index | Quarterly |
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Table of Contents
EQUITY INDEX FUNDS
SEPTEMBER 30, 2014 (UNAUDITED) |
Distributions of net realized capital gains, if any, are declared and paid at least annually. Distributions to shareholders are recorded on the ex-dividend date.
Income dividends and capital gains distributions are determined in accordance with federal income tax regulations. Such amounts may differ from income and capital gains recorded in accordance with U.S. GAAP. Accordingly, the Funds may periodically make reclassifications among certain of their capital accounts to reflect differences between financial reporting and federal income tax basis distributions. These reclassifications are reported in order to reflect the tax treatment for certain permanent differences that exist between income tax regulations and U.S. GAAP. These reclassifications may relate to net operating losses, Section 988 currency gains and losses, Passive Foreign Investment Companies (“PFICs’’) gains and losses, recharacterization of dividends received from investments in REITs, expired capital loss carryforwards, and gain or loss on in-kind transactions. These reclassifications have no impact on the total net assets or the net asset values per share of the Funds. At March 31, 2014, the following reclassifications were recorded:
Amounts in thousands | ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) | ACCUMULATED UNDISTRIBUTED NET REALIZED GAIN (LOSS) | CAPITAL STOCK | |||||||||
Emerging Markets Equity Index | $(1,214 | ) | $1,214 | $ — | ||||||||
Global Real Estate Index | 259 | (259 | ) | — | ||||||||
Global Sustainability Index | (16 | ) | 16 | — | ||||||||
International Equity Index | (716 | ) | (11,564 | ) | 12,280 | |||||||
Mid Cap Index | (741 | ) | 741 | — | ||||||||
Small Cap Index | (238 | ) | (9,463 | ) | 9,701 | |||||||
Stock Index | (978 | ) | (19,766 | ) | 20,744 |
I) FEDERAL INCOME TAXES No provision for federal income taxes has been made since each Fund’s policy is to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute, each year, substantially all of its taxable income and capital gains to its shareholders.
For the period subsequent to October 31, 2013, through the fiscal year ended March 31, 2014, the following Funds incurred net capital losses and/or Section 988 net currency losses which the Funds intend to treat as having been incurred in the following fiscal year:
Amounts in thousands | ||||
Emerging Markets Equity Index | $68,892 | |||
International Equity Index | $610 |
The Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated the eight-year limit on the use of capital loss carryforwards that arise in taxable years beginning after its enactment date of December 22, 2010. The changes became effective for the Funds for the fiscal year ended March 31, 2012. Consequently, capital losses incurred by the Funds in taxable years beginning with the taxable year ended March 31, 2012 can be carried forward for an unlimited period. However, capital losses incurred by the Funds in taxable years beginning before the taxable year ended March 31, 2012 with an expiration date may not be used to offset capital gains until all net capital losses incurred in taxable years beginning with the taxable year ended March 31, 2012 without an expiration date have been utilized. As a result, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The Funds’ ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
Capital losses incurred that will be carried forward under the provisions of the Act are as follows:
Amounts in thousands | SHORT-TERM CAPITAL LOSS CARRYFORWARD | LONG-TERM CAPITAL LOSS CARRYFORWARD | ||||||
Emerging Markets Equity Index | $2,967 | $46,010 | ||||||
International Equity Index | — | 56,856 | * |
* | Amounts include acquired capital loss carryovers which may be limited under current tax laws. |
The Funds in the above table may offset future capital gains with these capital loss carryforwards.
At March 31, 2014, the capital loss carryforwards for U.S. federal income tax purposes and their respective years of expiration for the Funds in the table below were as follows:
Amounts in thousands | MARCH 31, 2017 | MARCH 31, 2018 | MARCH 31, 2019 | |||||||||
Emerging Markets Equity Index | $12,794 | $101,299 | $4,624 | |||||||||
Global Sustainability Index | — | — | 2,330 | |||||||||
International Equity Index | 63,735 | * | 194,512 | * | 11,357 | * | ||||||
Stock Index | 1,886 | * | 3,047 | * | — |
* | Amounts include acquired capital loss carryovers which may be limited under current tax laws, expiring in varying amounts through March 31, 2019. |
The Funds in the above table may offset future capital gains with these capital loss carryforwards.
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Table of Contents
EQUITY INDEX FUNDS
NOTES TO THE FINANCIAL STATEMENTS continued
The Global Real Estate Index Fund has elected to defer net capital losses and/or Section 988 net currency losses incurred from November 1, 2013 through November 30, 2013, the Fund’s last tax year end, as having arisen on the first day of the following tax year:
Amounts in thousands | ||||
Global Real Estate Index | $5,417 |
At November 30, 2013, the Global Real Estate Index Fund’s last tax year end, there were no post enactment losses.
At November 30, 2013, the Global Real Estate Index Fund’s last tax year end, the capital loss carryforwards for U.S. federal income tax purposes and their year of expiration for the Fund in the table below were as follows:
Amounts in thousands | NOVEMBER 30, 2016 | NOVEMBER 30, 2017 | NOVEMBER 30, 2018 | NOVEMBER 30, 2019 | ||||||||||||
Global Real Estate Index | $97,667 | $496,446 | $10,164 | $13,694 |
The Fund in the above table may offset future capital gains with these capital loss carryforwards.
At March 31, 2014, the tax components of undistributed net investment income, undistributed realized gains and unrealized gains were as follows:
UNDISTRIBUTED | ||||||||||||
Amounts in thousands | ORDINARY INCOME* | LONG-TERM CAPITAL GAINS | UNREALIZED GAINS | |||||||||
Emerging Markets Equity Index | $9,350 | $ — | $241,006 | |||||||||
Global Sustainability Index | 1,754 | — | 46,409 | |||||||||
International Equity Index | 59,018 | — | 658,572 | |||||||||
Mid Cap Index | 6,812 | 21,335 | 362,780 | |||||||||
Small Cap Index | 2,363 | 2,685 | 294,777 | |||||||||
Stock Index | 13,664 | 17,096 | 1,968,268 |
* | Ordinary income includes taxable market discount income and short-term capital gains, if any. |
The tax components of undistributed net investment income, undistributed realized gains and unrealized losses at November 30, 2013, the Global Real Estate Index Fund’s last tax year end, were as follows:
UNDISTRIBUTED | ||||||||||||
Amounts in thousands | ORDINARY INCOME* | LONG-TERM CAPITAL GAINS | UNREALIZED GAINS | |||||||||
Global Real Estate Index | $19,657 | $ — | $102,340 |
* | Ordinary income includes taxable market discount income and short-term capital gains, if any. |
The tax character of distributions paid during the fiscal year ended March 31, 2014, was as follows:
DISTRIBUTIONS FROM | ||||||||
Amounts in thousands | ORDINARY INCOME* | LONG-TERM CAPITAL GAINS | ||||||
Emerging Markets Equity Index | $42,947 | $ — | ||||||
Global Sustainability Index | 2,889 | — | ||||||
International Equity Index | 83,000 | — | ||||||
Mid Cap Index | 18,854 | 29,575 | ||||||
Small Cap Index | 10,647 | 31,922 | ||||||
Stock Index | 101,707 | 17,304 |
* | Ordinary income includes taxable market discount income and short-term capital gains, if any. |
The tax character of distributions paid during the fiscal year ended March 31, 2013, was as follows:
DISTRIBUTIONS FROM | ||||||||
Amounts in thousands | ORDINARY INCOME* | LONG-TERM CAPITAL GAINS | ||||||
Emerging Markets Equity Index | $44,000 | $ — | ||||||
Global Sustainability Index | 2,800 | — | ||||||
International Equity Index | 53,302 | — | ||||||
Mid Cap Index | 11,362 | 16,039 | ||||||
Small Cap Index | 9,996 | 4,381 | ||||||
Stock Index | 80,033 | — |
* | Ordinary income includes taxable market discount income and short-term capital gains, if any. |
The tax character of distributions paid during the Global Real Estate Index Fund’s tax years ended November 30, 2013 and November 30, 2012 was designated for the purpose of the dividends paid deductions as follows:
NOVEMBER 30, 2013 AND NOVEMBER 30, 2012 DISTRIBUTIONS FROM | ||||||||
Amount in thousands | ORDINARY INCOME* | LONG-TERM CAPITAL GAINS | ||||||
Global Real Estate Index (2013) | $44,614 | $ — | ||||||
Global Real Estate Index (2012) | 19,073 | — |
* | Ordinary income includes taxable market discount income and short-term capital gains, if any. |
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EQUITY INDEX FUNDS
SEPTEMBER 30, 2014 (UNAUDITED) |
The Global Real Estate Index Fund has a tax year end of November 30th. Therefore, the tax character of distributions paid for the period December 1, 2013 through March 31, 2014 will be determined at the end of its tax year.
As of March 31, 2014, no Fund had uncertain tax positions that would require financial statement recognition or disclosure. The Funds’ federal tax returns, except for the Global Real Estate Index Fund, filed for the fiscal years ended March 31, 2011 through March 31, 2013 remain subject to examination by the Internal Revenue Service. The Global Real Estate Index Fund’s federal tax returns filed for the tax years ended November 30, 2011 through November 30, 2013 remain subject to examination by the Internal Revenue Service. Interest or penalties incurred, if any, on future unknown, uncertain tax positions taken by the Funds will be recorded as Interest expense on the Statements of Operations.
J) OTHER RISKS Certain Funds may invest in emerging market securities. Additional risks are involved when a Fund invests its assets in countries with emerging economies or securities markets. These countries generally are located in the Asia and Pacific regions, the Middle East, Eastern Europe, Central America, South America and Africa. Political and economic structures in many of these countries may lack the social, political and economic stability characteristics of more developed countries. In general, the securities markets of these countries are less liquid, subject to greater price volatility and have smaller market capitalizations. As a result, the risks presented by investments in these countries are heightened.
3. SERVICE PLAN
The Trust has adopted a Service Plan pursuant to which the Trust may enter into agreements with Northern Trust, its affiliates or other institutions (“Service Organizations”) under which the Service Organizations agree to provide certain administrative support services and, in some cases, personal and account maintenance services for their customers, who are beneficial owners of shares of the Funds. As compensation for services provided pursuant to the Service Plan, the Service Organizations receive a fee at an annual rate of up to 0.25 percent of the average daily net assets of the Funds beneficially owned by their customers. There were no shareholder servicing fees paid to Northern Trust or its affiliates during the six months ended September 30, 2014.
These expenses are included in the Statements of Operations under Shareholder servicing fees for the six months ended September 30, 2014.
4. BANK BORROWINGS
The Trust entered into a $150,000,000 senior unsecured revolving credit facility on November 25, 2013, which is administered by JPMorgan Chase Bank, N.A., for liquidity and other purposes (the “Credit Facility”). The interest rate charged under the Credit Facility is equal to the sum of (i) the Federal Funds Rate plus (ii) if the one month London Interbank Offered Rate (“LIBOR”) on the date of borrowing exceeds the Federal Funds Rate, the amount by which it so exceeds, plus (iii) 1.00 percent. In addition, there is an annual commitment fee of 0.07 percent on the unused portion of the credit line under the Credit Facility, payable quarterly in arrears which is included in Other expenses on the Statements of Operations.
At a meeting held on November 20, 2014, the Board approved an agreement that terminated, replaced and restated the Credit Facility (as so terminated, replaced and restated, the “New Credit Facility”). The New Credit Facility is in the amount of $250,000,000. The interest rate charged under the New Credit Facility is the same as it was for the Credit Facility. In addition, there is an annual commitment fee of 0.08 percent on the unused portion of the credit line under the New Credit Facility, payable quarterly in arrears. The New Credit Facility is anticipated to go into effect on November 24, 2014 and will expire on November 23, 2015, unless renewed.
At September 30, 2014, the Funds did not have any outstanding loans.
When utilized, the average dollar amounts of the borrowings and the weighted average interest rates for the six months ended September 30, 2014 on these borrowings were:
Amounts in thousands | DOLLAR AMOUNT | RATE | ||||||
Global Real Estate Index | $3,033 | 1.15 | % |
No other Funds incurred any interest expenses during the six months ended September 30, 2014.
5. MANAGEMENT AND OTHER AGREEMENTS
Shareholders of each Fund have approved a new management agreement, effective June 30, 2014, between the Fund and NTI (the “Management Agreement”), to provide the Fund with investment advisory and administration services under a single agreement and fee structure. As compensation for advisory and administration services and the assumption of related expenses, NTI is entitled to a management fee, computed daily and payable monthly, at the annual rates set forth in the first table below (expressed as a percentage of each Fund’s respective average daily net assets). Prior to June 30, 2014, as compensation for advisory services and the assumption of related expenses, NTI was entitled to an advisory fee, computed daily and payable monthly, at the annual rates set forth in the second table below (expressed as a percentage of each Fund’s respective average daily net assets).
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Table of Contents
EQUITY INDEX FUNDS
NOTES TO THE FINANCIAL STATEMENTS continued
Prior to June 30, 2014, NTI, as administrator, was also entitled to an administration fee from the Funds at the annual rate of 0.15% of the average daily net assets of each Fund.
NTI has contractually agreed to reimburse a portion of the operating expenses of each Fund (other than acquired fund fees and expenses, the Fund’s proportionate share of the increase in compensation paid to each disinterested Trustee, expenses related to third-party consultants engaged by the Board of Trustees of the Trust, membership dues paid to the Investment Company Institute and Mutual Fund Directors Forum, and extraordinary expenses and interest) as shown on the accompanying Statements of Operations, to adhere to the expense limitations set forth below. The amount of the reimbursement is included in Less expenses reimbursed by the investment advisor as a reduction to Total Expenses in the Statements of Operations.
At September 30, 2014, the annual management fees and contractual expense limitations for the Funds were based on the following annual rates as set forth below.
CONTRACTUAL MANAGEMENT FEES | ||||||||
Fund | ANNUAL MANAGEMENT FEE | EXPENSE LIMITATIONS | ||||||
Emerging Markets Equity Index | 0.21 | % | 0.30 | % | ||||
Global Real Estate Index | 0.40 | % | 0.50 | % | ||||
Global Sustainability Index | 0.18 | % | 0.30 | % | ||||
International Equity Index | 0.18 | % | 0.25 | % | ||||
Mid Cap Index | 0.13 | % | 0.15 | % | ||||
Small Cap Index | 0.13 | % | 0.15 | % | ||||
Stock Index | 0.08 | % | 0.10 | % |
Prior to June 30, 2014, the annual advisory fees for the Funds were based on the following annual rates as set forth in the table below. There was no change to the contractual expense limitations described above.
Fund | CONTRACTUAL ANNUAL | |||
Emerging Markets Equity Index | 0.35 | % | ||
Global Real Estate Index | 0.35 | % | ||
Global Sustainability Index | 0.35 | % | ||
International Equity Index | 0.25 | % | ||
Mid Cap Index | 0.20 | % | ||
Small Cap Index | 0.20 | % | ||
Stock Index | 0.10 | % |
The contractual reimbursement arrangement is expected to continue until at least July 31, 2015. The contractual reimbursement arrangement will continue automatically for periods of one year (each such one year period, a “Renewal Year”). The arrangement may be terminated, as to any succeeding Renewal Year, by NTI or a Fund upon 60 days’ written notice prior to the end of the current Renewal Year. The Board may terminate the contractual arrangements at any time with respect to a Fund if it determines that it is in the best interest of the Fund and its shareholders.
Effective June 30, 2014, as compensation for services rendered as transfer agent, including the assumption by Northern Trust of the expenses related thereto, Northern Trust receives a fee, computed daily and payable monthly, at an annual rate of 0.015 percent of the average daily net assets outstanding for each of the Funds. Prior to June 30, 2014, Northern Trust received transfer agent fees at an annual rate of 0.10 percent of the average daily net assets, accrued daily and payable monthly. Transfer agent fees are reflected in the Funds’ Statements of Operations.
NTI has a sub-administration agreement with Northern Trust, pursuant to which Northern Trust performs certain administrative services for the Funds. NTI pays Northern Trust for its sub-administration services out of NTI’s management fees. Prior to June 30, 2014, these sub-administration services were paid out of NTI’s administration fees.
For compensation as custodian, Northern Trust receives an amount based on a pre-determined schedule of charges approved by the Board. The Funds have entered into an expense off-set arrangement with the custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Funds’ custodian expenses. Custodian credits, if any, are reflected as Less custodian credits in the Funds’ Statements of Operations.
Northern Funds Distributors, LLC, the distributor for the Funds, received no compensation from the Funds under its distribution agreement. However, it received compensation from NTI for its services as distributor pursuant to a separate letter agreement between it and NTI.
Certain officers of the Trust are also officers of Northern Trust and NTI. All officers serve without compensation from the Funds. The Trust provided a deferred compensation plan for its Trustees who are not officers of Northern Trust or NTI. Prior to August 22, 2013, under the deferred compensation plan, Trustees may have elected to defer all or a portion of their compensation. Effective August 22, 2013, the Trustees may no longer defer their compensation. Any amounts deferred and invested under the plan shall remain invested pursuant to the terms of the plan. Each Trustee’s account shall be deemed to be invested in shares of the Diversified Assets Portfolio of Northern Institutional
EQUITY INDEX FUNDS | 114 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
EQUITY INDEX FUNDS
SEPTEMBER 30, 2014 (UNAUDITED) |
Funds and/or the Global Tactical Asset Allocation Fund of the Trust and/or, at the discretion of the Trust, another money market fund selected by the Trust that complies with the provisions of Rule 2a-7 under the 1940 Act or one or more short-term fixed-income instruments selected by the Trust that are “eligible securities” as defined by that rule. The net investment income, gains and losses achieved by such deemed investment shall be credited to the Trustee’s account as provided in the plan.
6. RELATED PARTY TRANSACTIONS
Pursuant to an exemptive order issued by the Securities and Exchange Commission (“SEC”), each Fund may invest its uninvested cash in a money market fund advised by NTI or its affiliates. Accordingly, each Fund will bear indirectly a proportionate share of that money market fund’s operating expenses. These operating expenses include management, transfer agency and custody fees that the money market fund pays to NTI and/or its affiliates. The uninvested cash of each of the Funds currently is invested in the Diversified Assets Portfolio of Northern Institutional Funds. The aggregate annual rate of management, transfer agency and custody fees payable to NTI and/or its affiliates on any assets invested in the Diversified Assets Portfolio is 0.35 percent of the average daily net assets. However, pursuant to the exemptive order, NTI will reimburse each Fund for advisory fees otherwise payable by the Fund on any assets invested in the Diversified Assets Portfolio. This reimbursement is included in Less expenses reimbursed by the investment adviser as a reduction to Total Expenses on the Statements of Operations. This reimbursement’s impact on each Fund’s net expenses and net investment income ratios is included in each Fund’s Financial Highlights. The exemptive order requires the Funds’ Board to determine before a vote on the Management Agreement that the advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds are not for duplicative services.
7. INVESTMENT TRANSACTIONS
For the six months ended September 30, 2014, the aggregate costs of purchases and proceeds from sales of securities (excluding short-term investments) for the Funds were as follows:
PURCHASES | SALES | |||||||||||||||
Amounts in thousands | U.S. GOVERNMENT | OTHER | U.S. GOVERNMENT | OTHER | ||||||||||||
Emerging Markets Equity Index | $ | — | $ | 166,571 | $ | — | $ | 171,834 | ||||||||
Global Real Estate Index | — | 164,464 | — | 39,360 | ||||||||||||
Global Sustainability Index | — | 23,525 | — | 7,295 | ||||||||||||
International Equity Index | — | 898,890 | — | 456,497 | ||||||||||||
Mid Cap Index | — | 152,386 | — | 115,156 | ||||||||||||
Small Cap Index | — | 117,809 | — | 133,160 | ||||||||||||
Stock Index | — | 83,302 | — | 77,315 |
The difference between book basis and tax basis net unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains on certain foreign currency contracts, the deferral of post-October currency and capital losses for tax purposes and the timing of income recognition on investments in REITs and PFICs.
At September 30, 2014, for federal income 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:
Amounts in thousands | UNREALIZED APPRECIATION | UNREALIZED DEPRECIATION | NET APPRECIATION (DEPRECIATION) | COST BASIS OF SECURITIES | ||||||||||||
Emerging Markets Equity Index | $ | 450,859 | $ | (178,540 | ) | $ | 272,319 | $ | 1,662,794 | |||||||
Global Real Estate Index | 206,377 | (57,560 | ) | 148,817 | 1,365,444 | |||||||||||
Global Sustainability Index | 50,442 | (3,518 | ) | 46,924 | 148,671 | |||||||||||
International Equity Index | 673,360 | (215,919 | ) | 457,441 | 4,331,216 | |||||||||||
Mid Cap Index | 346,281 | (28,990 | ) | 317,291 | 1,058,154 | |||||||||||
Small Cap Index | 254,595 | (55,625 | ) | 198,970 | 702,496 | |||||||||||
Stock Index | 2,280,852 | (28,942 | ) | 2,251,910 | 3,735,511 |
NORTHERN FUNDS SEMIANNUAL REPORT | 115 | EQUITY INDEX FUNDS |
Table of Contents
EQUITY INDEX FUNDS
NOTES TO THE FINANCIAL STATEMENTS continued
8. CAPITAL SHARE TRANSACTIONS
Transactions in capital shares for the six months ended September 30, 2014, were as follows:
Amounts in thousands | SHARES SOLD | PROCEEDS FROM SHARES SOLD | SHARES FROM REINVESTED DIVIDENDS | REINVESTMENT OF DIVIDENDS | SHARES REDEEMED | PAYMENTS FOR SHARES REDEEMED | NET INCREASE/ (DECREASE) IN SHARES | NET INCREASE/ (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
Emerging Markets Equity Index | 14,207 | $ | 168,933 | — | $ — | (16,321 | ) | $ | (192,392 | ) | (2,114 | ) | $ | (23,459 | ) | |||||||||||||||||
Global Real Estate Index | 23,694 | 235,850 | 317 | 3,096 | (10,641 | ) | (104,996 | ) | 13,370 | 133,950 | ||||||||||||||||||||||
Global Sustainability Index | 1,766 | 21,634 | — | — | (709 | ) | (8,727 | ) | 1,057 | 12,907 | ||||||||||||||||||||||
International Equity Index | 45,727 | 577,638 | — | — | (18,514 | ) | (233,150 | ) | 27,213 | 344,488 | ||||||||||||||||||||||
Mid Cap Index | 8,974 | 158,342 | — | — | (7,509 | ) | (132,057 | ) | 1,465 | 26,285 | ||||||||||||||||||||||
Small Cap Index | 4,795 | 58,218 | — | — | (6,944 | ) | (84,166 | ) | (2,149 | ) | (25,948 | ) | ||||||||||||||||||||
Stock Index | 21,322 | 512,573 | 460 | 11,239 | (19,478 | ) | (469,638 | ) | 2,304 | 54,174 |
Transactions in capital shares for the fiscal year ended March 31, 2014, were as follows:
Amounts in thousands | SHARES SOLD | PROCEEDS FROM SHARES SOLD | SHARES FROM REINVESTED DIVIDENDS | REINVESTMENT OF DIVIDENDS | SHARES REDEEMED | PAYMENTS FOR SHARES REDEEMED | NET INCREASE IN SHARES | NET INCREASE IN NET ASSETS | ||||||||||||||||||||||||
Emerging Markets Equity Index | 59,509 | $ | 657,823 | 345 | $ | 3,823 | (71,509 | ) | $ | (780,267 | ) | (11,655 | ) | $ | (118,621 | ) | ||||||||||||||||
Global Real Estate Index | 52,043 | 488,864 | 673 | 6,015 | (44,023 | ) | (412,238 | ) | 8,693 | 82,641 | ||||||||||||||||||||||
Global Sustainability Index | 2,998 | 33,803 | 62 | 703 | (1,301 | ) | (14,336 | ) | 1,759 | 20,170 | ||||||||||||||||||||||
International Equity Index | 177,506 | 2,099,110 | 920 | 10,975 | (35,607 | ) | (421,601 | ) | 142,819 | 1,688,484 | ||||||||||||||||||||||
Mid Cap Index | 18,974 | 305,069 | 2,184 | 35,823 | (11,018 | ) | (179,207 | ) | 10,140 | 161,685 | ||||||||||||||||||||||
Small Cap Index | 21,226 | 245,635 | 2,856 | 33,781 | (17,744 | ) | (206,447 | ) | 6,338 | 72,969 | ||||||||||||||||||||||
Stock Index | 59,157 | 1,263,937 | 1,542 | 33,726 | (65,562 | ) | (1,405,809 | ) | (4,863 | ) | (108,146 | ) |
9. DERIVATIVE INSTRUMENTS
None of the derivatives held in the Funds have been designated as hedging instruments. Information concerning the types of derivatives in which the Funds invest, the objectives for using them and their related risks can be found in Note 2.
Below are the types of derivatives by primary risk exposure as presented in the Statements of Assets and Liabilities as of September 30, 2014:
Amounts in thousands | ASSETS | LIABILITIES | ||||||||||||
FUND NAME | DERIVATIVE TYPE | STATEMENTS OF ASSETS AND LIABILITIES LOCATION | VALUE | STATEMENTS OF ASSETS AND LIABILITIES LOCATION | VALUE | |||||||||
Emerging Markets Equity Index | Equity contracts | Net Assets — Unrealized appreciation | $ — | * | Net Assets — Unrealized depreciation | $ | (1,919 | )* | ||||||
Forward foreign currency exchange contracts | Unrealized gain on forward foreign currency exchange contracts | 4 | Unrealized loss on forward foreign currency exchange contracts | (97 | ) | |||||||||
Global Real Estate Index | Equity contracts | Net Assets — Unrealized appreciation | 125 | * | Net Assets — Unrealized depreciation | (807 | )* | |||||||
Forward foreign currency exchange contracts | Unrealized gain on forward foreign currency exchange contracts | 140 | Unrealized loss on forward foreign currency exchange contracts | (305 | ) |
EQUITY INDEX FUNDS | 116 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
EQUITY INDEX FUNDS
SEPTEMBER 30, 2014 (UNAUDITED) |
Amounts in thousands | ASSETS | LIABILITIES | ||||||||||||
FUND NAME | DERIVATIVE TYPE | STATEMENTS OF ASSETS AND LIABILITIES LOCATION | VALUE | STATEMENTS OF ASSETS AND LIABILITIES LOCATION | VALUE | |||||||||
Global Sustainability Index | Equity contracts | Net Assets — Unrealized appreciation | $9 | * | Net Assets — Unrealized depreciation | $(16) | * | |||||||
Forward foreign currency exchange contracts | Unrealized gain on forward foreign currency exchange contracts | — | Unrealized loss on forward foreign currency exchange contracts | (13) | ||||||||||
International Equity Index | Equity contracts | Net Assets — Unrealized appreciation | 492 | * | Net Assets — Unrealized depreciation | (721) | * | |||||||
Forward foreign currency exchange contracts | Unrealized gain on forward foreign currency exchange contracts | 4 | Unrealized loss on forward foreign currency exchange contracts | (408) | ||||||||||
Mid Cap Index | Equity contracts | Net Assets — Unrealized appreciation | — | * | Net Assets — Unrealized depreciation | (883) | * | |||||||
Small Cap Index | Equity contracts | Net Assets — Unrealized appreciation | — | * | Net Assets — Unrealized depreciation | (892) | * | |||||||
Stock Index | Equity contracts | Net Assets — Unrealized appreciation | — | * | Net Assets — Unrealized depreciation | (1,993) | * |
* | Includes cumulative appreciation/depreciation on futures contracts as reported in the Schedule of Investments’ footnotes. Only the current day’s variation margin is reported within the Statements of Assets and Liabilities. |
The Funds may enter into transactions subject to enforceable netting agreements or other similar arrangements (“netting agreements”). Generally, netting agreements allow the Funds to offset any exposure to a specific counterparty with any collateral received or delivered to that counterparty based on the terms of the agreements. Generally, the Funds manage their cash collateral and securities collateral on a counterparty basis.
As of September 30, 2014, gross amounts of assets and liabilities for forward foreign exchange contracts not offset in the Statements of Assets and Liabilities, related collateral and net amounts after taking into account master netting arrangements, by counterparty, are as follows:
Amounts in thousands | GROSS AMOUNTS NOT OFFSET IN THE STATEMENTS OF ASSETS AND LIABILITIES | |||||||||||||||||
FUND NAME | COUNTERPARTY | GROSS AMOUNTS OF ASSETS PRESENTED IN STATEMENTS OF ASSETS AND LIABILITIES | FINANCIAL INSTRUMENTS | CASH COLLATERAL RECEIVED | NET AMOUNT | |||||||||||||
Emerging Markets Equity Index | UBS | $4 | $(4 | ) | $ | — | $ | — | ||||||||||
|
| |||||||||||||||||
Total | $4 | $(4 | ) | $ | — | $ | — | |||||||||||
|
| |||||||||||||||||
Global Real Estate Index | Citibank | $33 | $(27 | ) | $ | — | $6 | |||||||||||
Goldman Sachs | 19 | (14 | ) | — | 5 | |||||||||||||
Morgan Stanley | 88 | (88 | ) | — | — | |||||||||||||
UBS | — | — | — | — | ||||||||||||||
|
| |||||||||||||||||
Total | $140 | $(129 | ) | $ | — | $ | 11 | |||||||||||
|
|
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EQUITY INDEX FUNDS
NOTES TO THE FINANCIAL STATEMENTS continued
Amounts in thousands | GROSS AMOUNTS NOT OFFSET IN THE STATEMENTS OF ASSETS AND LIABILITIES | |||||||||||||||||
FUND NAME | COUNTERPARTY | GROSS AMOUNTS OF ASSETS PRESENTED IN STATEMENTS OF ASSETS AND LIABILITIES | FINANCIAL INSTRUMENTS | CASH COLLATERAL RECEIVED | NET AMOUNT | |||||||||||||
International Equity Index | Citibank | $ — | $ — | $ — | $ — | |||||||||||||
Goldman Sachs | — | — | — | — | ||||||||||||||
Morgan Stanley | 4 | (4 | ) | — | — | |||||||||||||
UBS | — | — | — | — | ||||||||||||||
|
| |||||||||||||||||
Total | $4 | $(4 | ) | $ — | $ — | |||||||||||||
|
|
Amounts in thousands | GROSS AMOUNTS NOT OFFSET IN THE STATEMENTS OF ASSETS AND LIABILITIES | |||||||||||||||||
FUND NAME | COUNTERPARTY | GROSS AMOUNTS OF LIABILITIES PRESENTED IN STATEMENTS OF ASSETS AND LIABILITIES | FINANCIAL INSTRUMENTS | CASH COLLATERAL RECEIVED | NET AMOUNT | |||||||||||||
Emerging Markets Equity Index | UBS | $(97 | ) | $4 | $ — | $(93 | ) | |||||||||||
|
| |||||||||||||||||
Total | $(97 | ) | $4 | $ — | $(93 | ) | ||||||||||||
|
| |||||||||||||||||
Global Real Estate Index | Citibank | $(27 | ) | $27 | $ — | $ — | ||||||||||||
Goldman Sachs | (14 | ) | 14 | — | — | |||||||||||||
Morgan Stanley | (180 | ) | 88 | — | (92 | ) | ||||||||||||
UBS | (84 | ) | — | — | (84 | ) | ||||||||||||
|
| |||||||||||||||||
Total | $(305 | ) | $129 | $ — | $(176 | ) | ||||||||||||
|
| |||||||||||||||||
Global Sustainability Index | Goldman Sachs | $(1 | ) | $ — | $ — | $(1 | ) | |||||||||||
Morgan Stanley | (6 | ) | — | — | (6 | ) | ||||||||||||
UBS | (6 | ) | — | — | (6 | ) | ||||||||||||
|
| |||||||||||||||||
Total | $(13 | ) | $ — | $ — | $(13 | ) | ||||||||||||
|
| |||||||||||||||||
International Equity Index | Citibank | $(2 | ) | $ — | $ — | $(2 | ) | |||||||||||
Goldman Sachs | (26 | ) | — | — | (26 | ) | ||||||||||||
Morgan Stanley | (107 | ) | 4 | — | (103 | ) | ||||||||||||
UBS | (273 | ) | — | — | (273 | ) | ||||||||||||
|
| |||||||||||||||||
Total | $(408 | ) | $4 | $ — | $(404 | ) | ||||||||||||
|
|
The following tables set forth by primary risk exposure the Funds’ realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the six months ended September 30, 2014:
Amounts in thousands | AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVE CONTRACTS | |||||||
FUND NAME | DERIVATIVE TYPE | STATEMENTS OF OPERATIONS LOCATION | VALUE | |||||
Emerging Markets Equity Index | Equity contracts | Net realized gains (losses) on futures contracts | $ | 4,931 | ||||
Forward foreign currency exchange contracts | Net realized gains (losses) on foreign currency transactions | 131 |
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EQUITY INDEX FUNDS
SEPTEMBER 30, 2014 (UNAUDITED) |
Amounts in thousands | AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVE CONTRACTS | |||||||
FUND NAME | DERIVATIVE TYPE | STATEMENTS OF OPERATIONS LOCATION | VALUE | |||||
Global Real Estate Index | Equity contracts | Net realized gains (losses) on futures contracts | $2,472 | |||||
Forward foreign currency exchange contracts | Net realized gains (losses) on foreign currency transactions | (435 | ) | |||||
Global Sustainability Index | Equity contracts | Net realized gains (losses) on futures contracts | 393 | |||||
Forward foreign currency exchange contracts | Net realized gains (losses) on foreign currency transactions | (18 | ) | |||||
International Equity Index | Equity contracts | Net realized gains (losses) on futures contracts | 6,705 | |||||
Forward foreign currency exchange contracts | Net realized gains (losses) on foreign currency transactions | (1,293 | ) | |||||
Mid Cap Index | Equity contracts | Net realized gains (losses) on futures contracts | 189 | |||||
Small Cap Index | Equity contracts | Net realized gains (losses) on futures contracts | (962 | ) | ||||
Stock Index | Equity contracts | Net realized gains (losses) on futures contracts | 15,493 |
Amounts in thousands | CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVE CONTRACTS | |||||||
FUND NAME | DERIVATIVE TYPE | STATEMENTS OF OPERATIONS LOCATION | VALUE | |||||
Emerging Markets Equity Index | Equity contracts | Net change in unrealized appreciation (depreciation) on futures contracts | $ | (3,218 | ) | |||
Forward foreign currency exchange contracts | Net change in unrealized appreciation (depreciation) on foreign currency translations | (128 | ) | |||||
Global Real Estate Index | Equity contracts | Net change in unrealized appreciation (depreciation) on futures contracts | (903 | ) | ||||
Forward foreign currency exchange contracts | Net change in unrealized appreciation (depreciation) on foreign currency translations | (162 | ) | |||||
Global Sustainability Index | Equity contracts | Net change in unrealized appreciation (depreciation) on futures contracts | (94 | ) | ||||
Forward foreign currency exchange contracts | Net change in unrealized appreciation (depreciation) on foreign currency translations | (16 | ) | |||||
International Equity Index | Equity contracts | Net change in unrealized appreciation (depreciation) on futures contracts | (2,111 | ) | ||||
Forward foreign currency exchange contracts | Net change in unrealized appreciation (depreciation) on foreign currency translations | (334 | ) | |||||
Mid Cap Index | Equity contracts | Net change in unrealized appreciation (depreciation) on futures contracts | (1,168 | ) | ||||
Small Cap Index | Equity contracts | Net change in unrealized appreciation (depreciation) on futures contracts | (684 | ) | ||||
Stock Index | Equity contracts | Net change in unrealized appreciation (depreciation) on futures contracts | (3,122 | ) |
Volume of derivative activity for the six months ended September 30, 2014*:
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS | FUTURES EQUITY CONTRACTS | |||||||||||||||
NUMBER OF TRADES | AVERAGE NOTIONAL AMOUNT** | NUMBER OF TRADES | AVERAGE NOTIONAL AMOUNT** | |||||||||||||
Emerging Markets Equity Index | 15 | $1,827 | 48 | $4,699 | ||||||||||||
Global Real Estate Index | 129 | 927 | 434 | 689 | ||||||||||||
Global Sustainability Index | 31 | 143 | 156 | 204 | ||||||||||||
International Equity Index | 48 | 2,581 | 114 | 2,178 | ||||||||||||
Mid Cap Index | — | — | 147 | 1,290 |
NORTHERN FUNDS SEMIANNUAL REPORT | 119 | EQUITY INDEX FUNDS |
Table of Contents
EQUITY INDEX FUNDS
NOTES TO THE FINANCIAL STATEMENTS continued
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS | FUTURES EQUITY CONTRACTS | |||||||||||||||
NUMBER OF TRADES | AVERAGE NOTIONAL AMOUNT** | NUMBER OF TRADES | AVERAGE NOTIONAL AMOUNT** | |||||||||||||
Small Cap Index | — | $ — | 103 | $716 | ||||||||||||
Stock Index | — | — | 125 | 6,131 |
* | Activity during the period is measured by number of trades during the period and average notional amount forward foreign currency exchange and futures equity contracts. |
** | Amounts in thousands. |
10. INDEMNIFICATIONS AND WARRANTIES
In the ordinary course of their business, the Funds may enter into contracts or agreements that contain indemnifications or warranties. Future events could occur that lead to the execution of these provisions against the Funds. The maximum exposure to the Funds under these provisions is unknown, as this would involve future claims that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and believe the risk of loss to be remote.
11. LEGAL PROCEEDINGS
In December 2007, the Mid Cap Index Fund (the “Fund”), as a shareholder of Lyondell Chemical Company (“Lyondell”), participated in a cash out merger of Lyondell in which it received $48/share of merger consideration. Lyondell later filed for bankruptcy and two entities created by the Lyondell bankruptcy plan of reorganization have initiated lawsuits, based on fraudulent transfer claims, seeking to recover, or clawback, proceeds received by shareholders, including the Fund, in the December 2007 merger.
The first action, Edward S. Weisfelner, as Trustee of the LB Creditor Trust v. Fund 1, et al. (the “Creditor Action”), was initiated on October 22, 2010 and is now pending in the U.S. Bankruptcy court for the Southern District of New York. The Creditor Action asserts causes of action for intentional and constructive fraudulent transfer under state law. On January 14, 2014, the U.S. Bankruptcy Court issued a decision and order dismissing (a) the intentional fraudulent transfer claim as to all defendants (without prejudice), (b) the constructive fraudulent claim as to all conduits and non-beneficial owners of Lyondell stock (with prejudice), and (c) the secured lender deficiency claims that had been assigned to the Creditor Trust. The Court, however, rejected the remaining arguments in the motions to dismiss. It is anticipated that the Creditor Trust will file an amended complaint to replead the intentional fraudulent transfer claim and other claims that were not dismissed.
The second action, Edward S. Weisfelner, as trustee of the LB Litigation Trust v. A Holmes & H Holmes TTEE, et al. (the “Litigation Action”), was initiated as a putative defendant class action on December 23, 2010, in the U.S. Bankruptcy Court for the Southern District of New York. The Fund, while not expressly named, is included in the definition of the putative class of defendants. A claim for intentional fraudulent transfer under the U.S. Bankruptcy Code is the only remaining claim in this action. On February 4, 2014, the Court stated that the decision and order issued in the Creditor Action is deemed to apply in the Litigation Action. The Litigation Trust has indicated it also intends to file an amended complaint to cure deficiencies in its intentional fraudulent transfer claim.
Both the Creditor and Litigation Actions attempt to recover the proceeds paid out to the holders of Lyondell shares at the time of the 2007 merger. The value of the proceeds received by the Fund was approximately $4,171,000. The Fund cannot predict the outcome of these proceedings, but an adverse decision could have a material impact on the Fund’s net asset value. The Fund intends to vigorously defend these actions.
In 2007, the Stock Index Fund was a shareholder of the Tribune Company (“Tribune”). In December of 2007, as a part of a leveraged buy-out transaction (the “LBO”), Tribune was converted from a public company to a privately-held company. Tribune later filed for bankruptcy.
On December 7, 2010, Northern Funds was named as a defendant and a putative member of the proposed defendant class of shareholders named in an adversary proceeding (the “Committee Action”) brought by The Official Committee of Unsecured Creditors of Tribune Company (the “Committee”) in the U.S. Bankruptcy Court for the District of Delaware, in connection with Tribune’s bankruptcy proceeding. On June 2, 2011, a second suit was initiated by certain creditors of Tribune in the Delaware Superior Court with respect to claims related to the LBO (Niese et al. v. A.G. Edwards, Inc. et al.), in which Northern Funds was named as a defendant. The indenture trustees, on behalf of certain noteholders of Tribune, filed a third suit and named Northern Funds as a defendant on June 2, 2011 in the U.S. District Court for the Northern District of Illinois (Deutsche Bank Trust
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EQUITY INDEX FUNDS
SEPTEMBER 30, 2014 (UNAUDITED) |
Co. et al. v. Ohlson Enterprises et al.). Each of these cases has now been consolidated into a Multi-District Litigation proceeding, pending in the Southern District of New York. The cases attempt to “clawback” the proceeds paid out in connection with the LBO.
The defendants have jointly moved to dismiss all of the actions filed by the individual creditors in the Niese and Deutsche Bank cases. The Committee Action was not subject to the motion to dismiss. On September 23, 2013, the District Court dismissed the individual creditors’ actions. The individual creditors filed a notice of appeal of the Court’s decision on September 30, 2013. The appeal is currently pending before the United States Court of Appeals for the Second Circuit.
The value of the proceeds received by the Stock Index Fund in the LBO was approximately $790,000, which includes proceeds of approximately $372,000 received by the NIF Equity Index Portfolio, which was acquired by the Stock Index Fund in 2012. The Fund cannot predict the outcome of these proceedings, but an adverse decision could have a material impact on the Fund’s net asset value. The Fund intends to vigorously defend these actions.
12. SUBSEQUENT EVENTS
Management has evaluated subsequent events for the Funds through the date the financial statements were issued, and has concluded that there are no recognized or non-recognized subsequent events relevant for financial statement disclosure.
NORTHERN FUNDS SEMIANNUAL REPORT | 121 | EQUITY INDEX FUNDS |
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EQUITY INDEX FUNDS
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, if any, including redemption fees on certain exchanges and redemptions in the Emerging Markets Equity Index, Global Real Estate Index, Global Sustainability Index, and International Equity Index Funds; and (2) ongoing costs, including advisory fees and other fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, April 1, 2014 through September 30, 2014.
ACTUAL EXPENSES
The first line of the tables below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid 4/1/14 - 9/30/14” to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the tables below provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5 percent per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5 percent hypothetical example with the 5 percent hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees or other costs such as advisory fees related to affiliated money market funds investments, but shareholders of other funds may incur such costs. For example, the information does not reflect redemption fees (as described on page 110), if any, in the Emerging Markets Equity Index, Global Real Estate Index, Global Sustainability Index, and International Equity Index Funds. If these fees were included, your costs would have been higher. The information also does not reflect reimbursements on advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds (as described on page 115), which may result in different expense ratios in the Financial Highlights. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
EMERGING MARKETS EQUITY INDEX
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/2014 | ENDING ACCOUNT VALUE 9/30/2014 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.30 | % | $ | 1,000.00 | $ | 1,027.80 | $ | 1.53 | ||||||||
Hypothetical** | 0.30 | % | $ | 1,000.00 | $ | 1,023.56 | $ | 1.52 |
GLOBAL REAL ESTATE INDEX
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/2014 | ENDING ACCOUNT VALUE 9/30/2014 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.50 | % | $ | 1,000.00 | $ | 1,027.00 | $ | 2.54 | ||||||||
Hypothetical** | 0.50 | % | $ | 1,000.00 | $ | 1,022.56 | $ | 2.54 |
GLOBAL SUSTAINABILITY INDEX
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/2014 | ENDING ACCOUNT VALUE 9/30/2014 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.31 | % | $ | 1,000.00 | $ | 1,023.60 | $ | 1.57 | ||||||||
Hypothetical** | 0.31 | % | $ | 1,000.00 | $ | 1,023.51 | $ | 1.57 |
INTERNATIONAL EQUITY INDEX
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/2014 | ENDING ACCOUNT VALUE 9/30/2014 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.25 | % | $ | 1,000.00 | $ | 977.40 | $ | 1.24 | ||||||||
Hypothetical** | 0.25 | % | $ | 1,000.00 | $ | 1,023.82 | $ | 1.27 |
MID CAP INDEX
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/2014 | ENDING ACCOUNT VALUE 9/30/2014 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.15 | % | $ | 1,000.00 | $ | 1,000.60 | $ | 0.75 | ||||||||
Hypothetical** | 0.15 | % | $ | 1,000.00 | $ | 1,024.32 | $ | 0.76 |
SMALL CAP INDEX
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/2014 | ENDING ACCOUNT VALUE 9/30/2014 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.15 | % | $ | 1,000.00 | $ | 944.30 | $ | 0.73 | ||||||||
Hypothetical** | 0.15 | % | $ | 1,000.00 | $ | 1,024.32 | $ | 0.76 |
EQUITY INDEX FUNDS | 122 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
EQUITY INDEX FUNDS
SEPTEMBER 30, 2014 (UNAUDITED) |
STOCK INDEX
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/2014 | ENDING ACCOUNT VALUE 9/30/2014 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.10 | % | $ | 1,000.00 | $ | 1,063.50 | $ | 0.52 | ||||||||
Hypothetical** | 0.10 | % | $ | 1,000.00 | $ | 1,024.57 | $ | 0.51 |
* | Expenses are calculated using the Funds’ annualized expense ratios, which represent ongoing expenses as a percentage of net assets for the six months ended September 30, 2014. Expenses are calculated by multiplying the annualized expense ratio by the average account value over the period; then multiplying the result by the number of days in the most recent fiscal half year (183); and then dividing that result by the number of days in the current fiscal year (365). |
** | Hypothetical expenses are based on the Funds’ actual annualized expense ratios and an assumed rate of return of 5 percent per year before expenses. |
NORTHERN FUNDS SEMIANNUAL REPORT | 123 | EQUITY INDEX FUNDS |
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EQUITY INDEX FUNDS
PORTFOLIO HOLDINGS
Northern Funds files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s Web site at sec.gov. You may also review and obtain copies at the SEC’s Public Reference Room in Washington, D.C. Information about the Public Reference Room may be obtained by calling 800-SEC-0330.
PROXY VOTING
Northern Funds’ Proxy Voting Policies and Procedures and each Fund’s portfolio securities voting record for the 12-month period ended June 30 are available upon request and without charge by visiting Northern Funds’ Web site at northernfunds.com or the SEC’s Web site at sec.gov or by calling the Northern Funds Center at 800-595-9111.
EQUITY INDEX FUNDS | 124 | NORTHERN FUNDS SEMIANNUAL REPORT |
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FIXED INCOME FUNDS
TABLE OF CONTENTS
2 | ||||
4 | ||||
6 | ||||
8 | ||||
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16 | ||||
27 | ||||
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48 | ||||
61 | ||||
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112 |
The 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.
This report contains 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 forward-looking 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.
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 SEMIANNUAL REPORT | 1 | FIXED INCOME FUNDS |
Table of Contents
FIXED INCOME FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
Amounts in thousands, except per share data | CORE FUND | FIXED FUND | ||||||
ASSETS: | ||||||||
Investments, at cost | $195,722 | (1) | $1,580,031 | (1) | ||||
Investments, at value | $197,376 | (4) | $1,610,689 | (4) | ||||
Dividend income receivable | – | 1 | ||||||
Interest income receivable | 869 | 11,754 | ||||||
Receivable for foreign tax reclaimable | 5 | 387 | ||||||
Receivable for securities sold | 18,946 | 189,370 | ||||||
Receivable for variation margin on futures contracts | – | – | ||||||
Receivable for fund shares sold | 196 | 1,838 | ||||||
Receivable from investment adviser | 2 | 4 | ||||||
Prepaid and other assets | 8 | 6 | ||||||
Total Assets | 217,402 | 1,814,049 | ||||||
LIABILITIES: | ||||||||
Payable for securities purchased | 21,130 | 222,026 | ||||||
Payable for when-issued securities | 16,866 | 86,619 | ||||||
Payable for variation margin on futures contracts | – | – | ||||||
Payable for fund shares redeemed | 6 | 1,760 | ||||||
Distributions to shareholders | 52 | 738 | ||||||
Payable to affiliates: | ||||||||
Management fees (Note 5) | 11 | 106 | ||||||
Custody and accounting fees | 2 | 7 | ||||||
Shareholder servicing fees | – | 1 | ||||||
Transfer agent fees | – | 4 | ||||||
Trustee fees | 6 | 25 | ||||||
Accrued other liabilities | 21 | 44 | ||||||
Total Liabilities | 38,094 | 311,330 | ||||||
Net Assets | $179,308 | $1,502,719 | ||||||
ANALYSIS OF NET ASSETS: | ||||||||
Capital stock | $177,354 | $1,483,070 | ||||||
Accumulated undistributed net investment income (loss) | (48 | ) | (1,615 | ) | ||||
Accumulated undistributed net realized gain (loss) | 348 | (9,394 | ) | |||||
Net unrealized appreciation (depreciation) | 1,654 | 30,658 | ||||||
Net Assets | $179,308 | $1,502,719 | ||||||
Shares Outstanding ($.0001 par value, unlimited authorization) | 17,240 | 145,694 | ||||||
Net Asset Value, Redemption and Offering Price Per Share | $10.40 | $10.31 |
(1) | Amounts include cost from the Diversified Assets Portfolio of the Northern Institutional Funds of $20,451, $118,834, $284,561, $20,372 and $41,818, respectively. |
(2) | Amounts include cost from the U.S. Government Portfolio of the Northern Institutional Funds of $381 and $353, respectively. |
(3) | Amounts include cost from the Tax-Exempt Portfolio of the Northern Institutional Funds of $18,480. |
(4) | Amounts include value from the Diversified Assets Portfolio of the Northern Institutional Funds of $20,451, $118,834, $284,561, $20,372 and $41,818, respectively. |
(5) | Amounts include value from the U.S. Government Portfolio of the Northern Institutional Funds of $381 and $353, respectively. |
(6) | Amounts include value from the Tax-Exempt Portfolio of the Northern Institutional Funds of $18,480. |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 2 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SEPTEMBER 30, 2014 (UNAUDITED) |
HIGH YIELD FUND | SHORT BOND FUND | SHORT- U.S. GOVERNMENT | TAX- FUND | ULTRA-SHORT FUND | U.S. GOVERNMENT FUND | |||||||||||||||||
$5,127,783 | (1) | $510,585 | (1) | $194,856 | (2) | $3,119,141 | (3) | $1,718,010 | (1) | $30,196 | (2) | |||||||||||
$5,142,190 | (4) | $508,598 | (4) | $194,327 | (5) | $3,127,452 | (6) | $1,722,151 | (4) | $30,124 | (5) | |||||||||||
2 | – | – | – | – | – | |||||||||||||||||
94,338 | 2,076 | 233 | 16,434 | 4,177 | 37 | |||||||||||||||||
345 | – | – | – | – | – | |||||||||||||||||
37,028 | 1,078 | 36,798 | – | – | 7,799 | |||||||||||||||||
– | 19 | 3 | – | – | – | |||||||||||||||||
6,585 | 3,333 | 19 | 7,836 | 5,242 | 16 | |||||||||||||||||
17 | 2 | 2 | 3 | 4 | 2 | |||||||||||||||||
21 | 7 | 4 | 23 | 7 | 4 | |||||||||||||||||
5,280,526 | 515,113 | 231,386 | 3,151,748 | 1,731,581 | 37,982 | |||||||||||||||||
47,024 | 1,495 | 36,224 | 14,994 | 14,994 | 7,388 | |||||||||||||||||
71,716 | 750 | – | 1,545 | – | – | |||||||||||||||||
– | 5 | 4 | – | – | 1 | |||||||||||||||||
4,439 | 20 | 248 | 6,091 | 3,929 | 60 | |||||||||||||||||
5,446 | 108 | 16 | 277 | 212 | 5 | |||||||||||||||||
642 | 32 | 12 | 116 | 64 | 2 | |||||||||||||||||
12 | 3 | 3 | 9 | 4 | 3 | |||||||||||||||||
252 | – | 2 | – | – | – | |||||||||||||||||
13 | 1 | – | 8 | 4 | – | |||||||||||||||||
30 | 6 | 11 | 11 | 7 | 5 | |||||||||||||||||
111 | 20 | 24 | 49 | 45 | 21 | |||||||||||||||||
129,685 | 2,440 | 36,544 | 23,100 | 19,259 | 7,485 | |||||||||||||||||
$5,150,841 | $512,673 | $194,842 | $3,128,648 | $1,712,322 | $30,497 | |||||||||||||||||
$5,046,275 | $516,624 | $198,736 | $3,119,574 | $1,706,822 | $31,565 | |||||||||||||||||
(852 | ) | (313 | ) | (52 | ) | (220 | ) | (13 | ) | 85 | ||||||||||||
91,011 | (1,756 | ) | (3,320 | ) | 983 | 1,372 | (1,079 | ) | ||||||||||||||
14,407 | (1,882 | ) | (522 | ) | 8,311 | 4,141 | (74 | ) | ||||||||||||||
$5,150,841 | $512,673 | $194,842 | $3,128,648 | $1,712,322 | $30,497 | |||||||||||||||||
693,511 | 26,939 | 19,893 | 307,972 | 167,505 | 3,181 | |||||||||||||||||
$7.43 | $19.03 | $9.79 | $10.16 | $10.22 | $9.59 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 3 | FIXED INCOME FUNDS |
Table of Contents
FIXED INCOME FUNDS
STATEMENTS OF OPERATIONS
Amount in thousands | CORE BOND FUND | FIXED FUND | HIGH YIELD FUND | |||||||||
INVESTMENT INCOME: | ||||||||||||
Interest income | $1,727 | $25,814 | (1) | $180,431 | (1) | |||||||
Dividend income | 1 | (2) | 7 | (2) | 2,256 | (2) | ||||||
Total Investment Income | 1,728 | 25,821 | 182,687 | |||||||||
EXPENSES: | ||||||||||||
Management fees (Note 5) | 164 | 1,662 | 10,460 | |||||||||
Investment advisory fees (Note 5) | 127 | 1,480 | 9,274 | |||||||||
Administration fees (Note 5) | 47 | 555 | 2,129 | |||||||||
Custody fees | 24 | 91 | 295 | |||||||||
Accounting fees | 8 | 42 | 147 | |||||||||
Transfer agent fees | 38 | 428 | 1,626 | |||||||||
Blue sky fees | 10 | 13 | 25 | |||||||||
SEC fees | 2 | 4 | 11 | |||||||||
Printing fees | 9 | 19 | 47 | |||||||||
Audit fees | 9 | 12 | 23 | |||||||||
Legal fees | 8 | 11 | 22 | |||||||||
Shareholder servicing fees | – | 18 | 678 | |||||||||
Trustee fees and expenses | 9 | 21 | 53 | |||||||||
Interest expense | – | – | 16 | |||||||||
Other | 5 | 11 | 28 | |||||||||
Total Expenses | 460 | 4,367 | 24,834 | |||||||||
Less expenses reimbursed by investment adviser | (159 | ) | (963 | ) | (2,466 | ) | ||||||
Net Expenses | 301 | 3,404 | 22,368 | |||||||||
Net Investment Income | 1,427 | 22,417 | 160,319 | |||||||||
NET REALIZED AND UNREALIZED GAINS (LOSSES): | ||||||||||||
Net realized gains (losses) on: | ||||||||||||
Investments | 946 | 14,632 | 46,100 | |||||||||
Futures contracts | 105 | (769 | ) | – | ||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||
Investments | 480 | (2,103 | ) | (176,846 | ) | |||||||
Futures contracts | 17 | 38 | – | |||||||||
Net Gains (Loss) | 1,548 | 11,798 | (130,746 | ) | ||||||||
Net Increase in Net Assets Resulting from Operations | $2,975 | $34,215 | $29,573 |
(1) | Net of $2 and $67, respectively in non-reclaimable foreign withholding taxes. |
(2) | Amounts include dividend income from the Diversified Assets Portfolio of the Northern Institutional Funds of $1, $7, $7, $1, and $1, respectively. |
(3) | Amounts include dividend income from the U.S. Government Portfolio of the Northern Institutional Funds of $1 and less than $1, respectively. |
(4) | Amounts include dividend income from the Tax-Exempt Portfolio of the Northern Institutional Funds of $2. |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 4 | NORTHERN FUNDS SEMIANNUAL REPORT |
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SIX MONTHS ENDED SEPTEMBER 30, 2014 (UNAUDITED) |
SHORT BOND | SHORT- U.S. GOVERNMENT | TAX- FUND | ULTRA-SHORT FUND | U.S. GOVERNMENT FUND | ||||||||||||||
$4,133 | $903 | $11,616 | $8,382 | $198 | ||||||||||||||
1 | (2) | 1 | (3) | 2 | (4) | 1 | (2) | – | (3) | |||||||||
4,134 | 904 | 11,618 | 8,383 | 198 | ||||||||||||||
485 | 193 | 1,706 | 1,009 | 31 | ||||||||||||||
492 | 208 | 1,018 | 623 | 58 | ||||||||||||||
185 | 78 | 1,053 | 627 | 12 | ||||||||||||||
35 | 18 | 153 | 93 | 12 | ||||||||||||||
17 | 10 | 74 | 46 | 6 | ||||||||||||||
142 | 59 | 816 | 484 | 10 | ||||||||||||||
10 | 11 | 13 | 25 | 10 | ||||||||||||||
2 | 2 | 6 | 4 | 2 | ||||||||||||||
8 | 8 | 24 | 18 | 8 | ||||||||||||||
9 | 9 | 14 | 12 | 9 | ||||||||||||||
8 | 8 | 14 | 11 | 8 | ||||||||||||||
– | 4 | 5 | 2 | 1 | ||||||||||||||
9 | 9 | 27 | 18 | 9 | ||||||||||||||
– | – | – | – | – | ||||||||||||||
5 | 5 | 14 | 10 | 5 | ||||||||||||||
1,407 | 622 | 4,937 | 2,982 | 181 | ||||||||||||||
(400 | ) | (206 | ) | (1,275 | ) | (829 | ) | (111 | ) | |||||||||
1,007 | 416 | 3,662 | 2,153 | 70 | ||||||||||||||
3,127 | 488 | 7,956 | 6,230 | 128 | ||||||||||||||
397 | 414 | 521 | 1,008 | 129 | ||||||||||||||
(329 | ) | (237 | ) | – | – | (15 | ) | |||||||||||
(2,111 | ) | 367 | 82 | (897 | ) | 80 | ||||||||||||
(139 | ) | (8 | ) | – | – | (2 | ) | |||||||||||
(2,182 | ) | 536 | 603 | 111 | 192 | |||||||||||||
$945 | $1,024 | $8,559 | $6,341 | $320 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 5 | FIXED INCOME FUNDS |
Table of Contents
FIXED INCOME FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
CORE BOND FUND | FIXED INCOME FUND | HIGH YIELD FIXED INCOME FUND | SHORT BOND FUND | |||||||||||||||||||||||||||||
Amounts in thousands | SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | ||||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||||||||||
Net investment income | $1,427 | $1,988 | $22,417 | $48,948 | $160,319 | $340,825 | $3,127 | $4,932 | ||||||||||||||||||||||||
Net realized gains (losses) | 1,051 | (481 | ) | 13,863 | (12,908 | ) | 46,100 | 134,954 | 68 | (450 | ) | |||||||||||||||||||||
Net change in unrealized appreciation (depreciation) | 497 | (1,581 | ) | (2,065 | ) | (27,392 | ) | (176,846 | ) | (63,228 | ) | (2,250 | ) | (1,966 | ) | |||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 2,975 | (74 | ) | 34,215 | 8,648 | 29,573 | 412,551 | 945 | 2,516 | |||||||||||||||||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||||||||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | 73,611 | 28,833 | 4,173 | (214,813 | ) | (433,787 | ) | (133,765 | ) | 73,253 | 134,313 | |||||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions | 73,611 | 28,833 | 4,173 | (214,813 | ) | (433,787 | ) | (133,765 | ) | 73,253 | 134,313 | |||||||||||||||||||||
DISTRIBUTIONS PAID: | ||||||||||||||||||||||||||||||||
From net investment income | (1,473 | ) | (2,120 | ) | (23,200 | ) | (51,772 | ) | (160,338 | ) | (340,869 | ) | (3,312 | ) | (5,213 | ) | ||||||||||||||||
From net realized gains | – | (107 | ) | – | (8,958 | ) | – | (108,094 | ) | – | – | |||||||||||||||||||||
Total Distributions Paid | (1,473 | ) | (2,227 | ) | (23,200 | ) | (60,730 | ) | (160,338 | ) | (448,963 | ) | (3,312 | ) | (5,213 | ) | ||||||||||||||||
Total Increase (Decrease) in Net Assets | 75,113 | 26,532 | 15,188 | (266,895 | ) | (564,552 | ) | (170,177 | ) | 70,886 | 131,616 | |||||||||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||||||||||
Beginning of period | 104,195 | 77,663 | 1,487,531 | 1,754,426 | 5,715,393 | 5,885,570 | 441,787 | 310,171 | ||||||||||||||||||||||||
End of period | $179,308 | $104,195 | $1,502,719 | $1,487,531 | $5,150,841 | $5,715,393 | $512,673 | $441,787 | ||||||||||||||||||||||||
Accumulated Undistributed Net Investment Income (Loss) | $(48 | ) | $(2 | ) | $(1,615 | ) | $(832 | ) | $(852 | ) | $(833 | ) | $(313 | ) | $(128 | ) |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 6 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2014 (UNAUDITED) |
OR THE FISCAL YEAR ENDED MARCH 31, 2014
SHORT- INTERMEDIATE U.S. GOVERNMENT FUND | TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND | ULTRA-SHORT FIXED INCOME FUND | U.S. GOVERNMENT FUND | |||||||||||||||||||||||||||
SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | |||||||||||||||||||||||
$488 | $770 | $7,956 | $14,374 | $6,230 | $9,257 | $128 | $267 | |||||||||||||||||||||||
177 | (2,665 | ) | 521 | 1,271 | 1,008 | 889 | 114 | (998 | ) | |||||||||||||||||||||
359 | (2,084 | ) | 82 | (571 | ) | (897 | ) | 795 | 78 | (428 | ) | |||||||||||||||||||
1,024 | (3,979 | ) | 8,559 | 15,074 | 6,341 | 10,941 | 320 | (1,159 | ) | |||||||||||||||||||||
(23,375 | ) | (45,822 | ) | 299,656 | 584,268 | 11,580 | 598,701 | (3,835 | ) | (14,115 | ) | |||||||||||||||||||
(23,375 | ) | (45,822 | ) | 299,656 | 584,268 | 11,580 | 598,701 | (3,835 | ) | (14,115 | ) | |||||||||||||||||||
(540 | ) | (1,063 | ) | (7,956 | ) | (14,374 | ) | (6,229 | ) | (9,256 | ) | (134 | ) | (304 | ) | |||||||||||||||
– | – | – | (815 | ) | – | (899 | ) | – | – | |||||||||||||||||||||
(540 | ) | (1,063 | ) | (7,956 | ) | (15,189 | ) | (6,229 | ) | (10,155 | ) | (134 | ) | (304 | ) | |||||||||||||||
(22,891 | ) | (50,864 | ) | 300,259 | 584,153 | 11,692 | 599,487 | (3,649 | ) | (15,578 | ) | |||||||||||||||||||
217,733 | 268,597 | 2,828,389 | 2,244,236 | 1,700,630 | 1,101,143 | 34,146 | 49,724 | |||||||||||||||||||||||
$194,842 | $217,733 | $3,128,648 | $2,828,389 | $1,712,322 | $1,700,630 | $30,497 | $34,146 | |||||||||||||||||||||||
$(52 | ) | $– | $(220 | ) | $(220 | ) | $(13 | ) | $(14 | ) | $85 | $91 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 7 | FIXED INCOME FUNDS |
Table of Contents
FIXED INCOME FUNDS
FINANCIAL HIGHLIGHTS
CORE BOND FUND | SHARES/CLASS A SHARES | |||||||||||||||||||||||||||
Selected per share data | SIX MONTHS ENDED SEPT. 30, 2014 (UNAUDITED) | FISCAL YEAR ENDED MARCH 31, 2014 | FOUR MONTHS ENDED MARCH 31, 2013 | FISCAL YEAR ENDED NOV. 30, 2012 | FISCAL YEAR ENDED NOV. 30, 2011 | FISCAL YEAR ENDED NOV. 30, 2010 | FISCAL YEAR ENDED NOV. 30, 2009 | |||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.27 | $10.55 | $10.96 | $10.74 | $10.64 | $10.36 | $9.48 | |||||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||||||
Net investment income | 0.10 | 0.24 | 0.08 | 0.29 | 0.32 | 0.37 | 0.46 | |||||||||||||||||||||
Net realized and unrealized gains (losses) | 0.13 | (0.26 | ) | (0.10 | ) | 0.56 | 0.22 | 0.28 | 0.88 | |||||||||||||||||||
Total from Investment Operations | 0.23 | (0.02 | ) | (0.02 | ) | 0.85 | 0.54 | 0.65 | 1.34 | |||||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||||||
From net investment income | (0.10 | ) | (0.25 | ) | (0.10 | ) | (0.32 | ) | (0.32 | ) | (0.37 | ) | (0.46 | ) | ||||||||||||||
From net realized gains | – | (0.01 | ) | (0.29 | ) | (0.31 | ) | (0.12 | ) | – | – | |||||||||||||||||
Total Distributions Paid | (0.10 | ) | (0.26 | ) | (0.39 | ) | (0.63 | ) | (0.44 | ) | (0.37 | ) | (0.46 | ) | ||||||||||||||
Net Asset Value, End of Period | $10.40 | $10.27 | $10.55 | $10.96 | $10.74 | $10.64 | $10.36 | |||||||||||||||||||||
Total Return(1) | 2.28 | % | 0.02 | % | (0.33 | )% | 8.25 | % | 5.31 | % | 6.46 | % | 14.47 | % | ||||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||||||
Net assets, in thousands, end of period | $179,308 | $104,195 | $77,663 | $85,447 | $93,371 | $100,451 | $95,028 | |||||||||||||||||||||
Ratio to average net assets of:(2) | ||||||||||||||||||||||||||||
Expenses, net of waivers, reimbursements and credits | 0.40 | %(3) | 0.40 | %(3) | 0.39 | %(3) | 0.35 | %(3) | 0.32 | %(3) | 0.36 | % | 0.36 | % | ||||||||||||||
Expenses, before waivers, reimbursements and credits | 0.62 | % | 0.84 | % | 0.89 | % | 0.68 | % | 0.62 | % | 0.64 | % | 0.61 | % | ||||||||||||||
Net investment income, net of waivers, reimbursements and credits | 1.91 | %(3) | 2.32 | %(3) | 2.44 | %(3) | 2.72 | %(3) | 2.99 | %(3) | 3.43 | % | 4.47 | % | ||||||||||||||
Net investment income, before waivers, reimbursements and credits | 1.69 | % | 1.88 | % | 1.94 | % | 2.39 | % | 2.69 | % | 3.15 | % | 4.22 | % | ||||||||||||||
Portfolio Turnover Rate | 382.42 | % | 1,163.54 | % | 417.78 | % | 704.37 | % | 851.07 | % | 765.28 | % | 575.14 | % |
(1) | 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. Total return is not annualized for periods less than one year. |
(2) | Annualized for periods less than one year. |
(3) | 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 $3,000, $5,000, $4,000, $9,000, and $36,000, which represent less than 0.01, 0.01, 0.01, 0.01, and 0.04 percent of average net assets, for the six months ended September 30, 2014, fiscal year ended March 31, 2014, the four months ended March 31, 2013, and the fiscal years ended November 30, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 8 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
FIXED INCOME FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS ENDED SEPT.30, 2014 (UNAUDITED) | FISCAL YEAR ENDED MARCH 31, 2014 | FISCAL YEAR ENDED MARCH 31, 2013 | FISCAL YEAR ENDED MARCH 31, 2012 | FISCAL YEAR ENDED MARCH 31, 2011 | FISCAL YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $10.24 | $10.54 | $10.46 | $10.14 | $10.25 | $9.77 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.15 | 0.30 | 0.29 | 0.27 | 0.30 | 0.35 | ||||||||||||||||||
Net realized and unrealized gains (losses) | 0.08 | (0.22 | ) | 0.34 | 0.47 | 0.20 | 0.48 | |||||||||||||||||
Total from Investment Operations | 0.23 | 0.08 | 0.63 | 0.74 | 0.50 | 0.83 | ||||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income(1) | (0.16 | ) | (0.32 | ) | (0.32 | ) | (0.28 | ) | (0.30 | ) | (0.35 | ) | ||||||||||||
From net realized gains | – | (0.06 | ) | (0.23 | ) | (0.14 | ) | (0.31 | ) | – | ||||||||||||||
Total Distributions Paid | (0.16 | ) | (0.38 | ) | (0.55 | ) | (0.42 | ) | (0.61 | ) | (0.35 | ) | ||||||||||||
Net Asset Value, End of Period | $10.31 | $10.24 | $10.54 | $10.46 | $10.14 | $10.25 | ||||||||||||||||||
Total Return(2) | 2.24 | % | 0.85 | % | 6.02 | % | 7.48 | % | 4.82 | % | 8.78 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $1,502,719 | $1,487,531 | $1,754,426 | $1,658,673 | $1,112,234 | $1,080,546 | ||||||||||||||||||
Ratio to average net assets of:(3) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 0.45 | %(4) | 0.44 | %(4) | 0.43 | %(4) | 0.75 | %(4) | 0.85 | %(4) | 0.90 | % | ||||||||||||
Expenses, before reimbursements and credits | 0.58 | % | 0.69 | % | 0.80 | % | 0.98 | % | 0.99 | % | 0.99 | % | ||||||||||||
Net investment income, net of reimbursements and credits | 2.96 | %(4) | 2.99 | %(4) | 2.75 | %(4) | 2.49 | %(4) | 2.83 | %(4) | 3.46 | % | ||||||||||||
Net investment income, before reimbursements and credits | 2.83 | % | 2.74 | % | 2.38 | % | 2.26 | % | 2.69 | % | 3.37 | % | ||||||||||||
Portfolio Turnover Rate | 262.46 | % | 869.07 | % | 1,049.21 | % | 699.97 | % | 658.14 | % | 616.19 | % |
(1) | Distributions to shareholders from net investment income include amounts relating to foreign currency transactions which are treated as ordinary income for federal income tax purposes. |
(2) | 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. Total return is not annualized for periods less than one year. |
(3) | Annualized for periods less than one year. |
(4) | 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 $16,000, $76,000, $321,000, $184,000 and $551,000, which represent less than 0.005, 0.005, 0.02, 0.01 and 0.05 percent of average net assets for the six months ended September 30, 2014, and fiscal years ended March 31, 2014, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 9 | FIXED INCOME FUNDS |
Table of Contents
FIXED INCOME FUNDS
FINANCIAL HIGHLIGHTS continued
HIGH YIELD FIXED INCOME FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS ENDED SEPT. 30, 2014 (UNAUDITED) | FISCAL YEAR ENDED MARCH 31, 2014 | FISCAL YEAR ENDED MARCH 31, 2013 | FISCAL YEAR ENDED MARCH 31, 2012 | FISCAL YEAR ENDED MARCH 31, 2011 | FISCAL YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $7.61 | $7.66 | $7.31 | $7.45 | $7.08 | $5.89 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.22 | 0.47 | 0.51 | 0.53 | 0.56 | 0.61 | ||||||||||||||||||
Net realized and unrealized gains (losses) | (0.18 | ) | 0.10 | 0.35 | (0.14 | ) | 0.37 | 1.19 | ||||||||||||||||
Total from Investment Operations | 0.04 | 0.57 | 0.86 | 0.39 | 0.93 | 1.80 | ||||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income(1) | (0.22 | ) | (0.47 | ) | (0.51 | ) | (0.53 | ) | (0.56 | ) | (0.61 | ) | ||||||||||||
From net realized gains | – | (0.15 | ) | – | – | – | – | |||||||||||||||||
Total Distributions Paid | (0.22 | ) | (0.62 | ) | (0.51 | ) | (0.53 | ) | (0.56 | ) | (0.61 | ) | ||||||||||||
Net Asset Value, End of Period | $7.43 | $7.61 | $7.66 | $7.31 | $7.45 | $7.08 | ||||||||||||||||||
Total Return(2) | 0.48 | % | 7.71 | % | 12.18 | % | 5.60 | % | 13.71 | % | 31.76 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $5,150,841 | $5,715,393 | $5,885,570 | $5,360,268 | $4,122,592 | $2,960,644 | ||||||||||||||||||
Ratio to average net assets of:(3) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 0.80 | %(4) | 0.78 | %(4) | 0.75 | %(4) | 0.83 | %(4) | 0.86 | %(4) | 0.89 | % | ||||||||||||
Expenses, before reimbursements and credits | 0.89 | % | 0.95 | % | 0.95 | % | 0.95 | % | 0.96 | % | 0.99 | % | ||||||||||||
Net investment income, net of reimbursements and credits | 5.74 | %(4) | 6.14 | %(4) | 6.86 | %(4) | 7.33 | %(4) | 7.75 | %(4) | 9.12 | % | ||||||||||||
Net investment income, before reimbursements and credits | 5.65 | % | 5.97 | % | 6.66 | % | 7.21 | % | 7.65 | % | 9.02 | % | ||||||||||||
Portfolio Turnover Rate | 37.97 | % | 94.10 | % | 115.51 | % | 88.10 | % | 114.25 | % | 176.39 | % |
(1) | Distributions to shareholders from net investment income include amounts relating to foreign currency transactions which are treated as ordinary income for federal income tax purposes. |
(2) | 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. Total return is not annualized for periods less than one year. |
(3) | Annualized for periods less than one year. |
(4) | 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 $36,000, $124,000, $343,000, $99,000 and $335,000, which represent less than 0.001, less than 0.005, 0.01, less than 0.005 and 0.01 percent of average net assets for the six months ended September 30, 2014, and fiscal years ended March 31, 2014, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 10 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SHORT BOND FUND | SHARES/CLASS A SHARES | |||||||||||||||||||||||||||
Selected per share data | SIX MONTHS SEPT. 30, | FISCAL YEAR ENDED MARCH 31, 2014 | FOUR MONTHS ENDED MARCH 31, 2013 | FISCAL YEAR ENDED NOV. 30, 2012 | FISCAL YEAR ENDED NOV. 30, 2011 | FISCAL YEAR ENDED NOV. 30, 2010 | FISCAL YEAR ENDED NOV. 30, 2009 | |||||||||||||||||||||
Net Asset Value, Beginning of Period | $19.12 | $19.27 | $19.27 | $18.91 | $19.05 | $18.93 | $18.11 | |||||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||||||
Net investment income | 0.12 | 0.28 | 0.06 | 0.26 | 0.36 | 0.49 | 0.46 | |||||||||||||||||||||
Net realized and unrealized gains (losses) | (0.08 | ) | (0.14 | ) | – | 0.40 | (0.08 | ) | 0.14 | 0.84 | ||||||||||||||||||
Total from Investment Operations | 0.04 | 0.14 | 0.06 | 0.66 | 0.28 | 0.63 | 1.30 | |||||||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||||||
From net investment income | (0.13 | ) | (0.29 | ) | (0.06 | ) | (0.30 | ) | (0.42 | ) | (0.51 | ) | (0.48 | ) | ||||||||||||||
Total Distributions Paid | (0.13 | ) | (0.29 | ) | (0.06 | ) | (0.30 | ) | (0.42 | ) | (0.51 | ) | (0.48 | ) | ||||||||||||||
Net Asset Value, End of Period | $19.03 | $19.12 | $19.27 | $19.27 | $18.91 | $19.05 | $18.93 | |||||||||||||||||||||
Total Return(1) | 0.19 | % | 0.75 | % | 0.34 | % | 3.50 | % | 1.47 | % | 3.36 | % | 7.24 | % | ||||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||||||
Net assets, in thousands, end of period | $512,673 | $441,787 | $310,171 | $162,513 | $124,519 | $175,313 | $193,337 | |||||||||||||||||||||
Ratio to average net | ||||||||||||||||||||||||||||
Expenses, net of waivers, reimbursements and credits | 0.40 | %(3) | 0.40 | %(3) | 0.38 | %(3) | 0.35 | %(3) | 0.34 | %(3) | 0.36 | % | 0.36 | % | ||||||||||||||
Expenses, before waivers, reimbursements and credits | 0.56 | % | 0.71 | % | 0.74 | % | 0.61 | % | 0.57 | % | 0.58 | % | 0.59 | % | ||||||||||||||
Net investment income, net of waivers, reimbursements and credits | 1.25 | %(3) | 1.44 | %(3) | 0.89 | %(3) | 1.39 | %(3) | 1.86 | %(3) | 2.52 | % | 2.48 | % | ||||||||||||||
Net investment income, before waivers, reimbursements and credits | 1.09 | % | 1.13 | % | 0.53 | % | 1.13 | % | 1.63 | % | 2.30 | % | 2.25 | % | ||||||||||||||
Portfolio Turnover Rate | 94.01 | % | 424.85 | % | 181.67 | % | 517.67 | % | 411.73 | % | 432.78 | % | 903.45 | % |
(1) | 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. Total return is not annualized for periods less than one year. |
(2) | Annualized for periods less than one year. |
(3) | 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, $18,000, $19,000, $21,000 and $32,000, which represent less than 0.01, 0.005, 0.02, 0.01 and 0.02 percent of average net assets for the six months ended September 30, 2014, fiscal year ended March 31, 2014, the four months ended March 31, 2013, and the fiscal years ended November 30, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 11 | FIXED INCOME FUNDS |
Table of Contents
FIXED INCOME FUNDS
FINANCIAL HIGHLIGHTS continued
SHORT-INTERMEDIATE U.S. GOVERNMENT FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS SEPT. 30, | FISCAL YEAR ENDED MARCH 31, 2014 | FISCAL YEAR ENDED MARCH 31, 2013 | FISCAL YEAR ENDED MARCH 31, 2012 | FISCAL YEAR ENDED MARCH 31, 2011 | FISCAL YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $9.77 | $9.97 | $10.13 | $10.31 | $10.37 | $10.62 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.03 | 0.03 | 0.03 | 0.01 | 0.06 | 0.09 | ||||||||||||||||||
Net realized and unrealized gains (losses) | 0.02 | (0.19 | ) | 0.15 | 0.28 | 0.18 | 0.08 | |||||||||||||||||
Total from Investment Operations | 0.05 | (0.16 | ) | 0.18 | 0.29 | 0.24 | 0.17 | |||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income | (0.03 | ) | (0.04 | ) | (0.06 | ) | (0.02 | ) | (0.05 | ) | (0.10 | ) | ||||||||||||
From net realized gains | – | – | (0.28 | ) | (0.45 | ) | (0.25 | ) | (0.32 | ) | ||||||||||||||
Total Distributions Paid | (0.03 | ) | (0.04 | ) | (0.34 | ) | (0.47 | ) | (0.30 | ) | (0.42 | ) | ||||||||||||
Net Asset Value, End of Period | $9.79 | $9.77 | $9.97 | $10.13 | $10.31 | $10.37 | ||||||||||||||||||
Total Return(1) | 0.58 | % | (1.57 | )% | 1.76 | % | 2.85 | % | 2.30 | % | 1.37 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $194,842 | $217,733 | $268,597 | $319,615 | $1,052,765 | $794,392 | ||||||||||||||||||
Ratio to average net assets of:(2) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 0.40 | % | 0.40 | %(3) | 0.38 | %(3) | 0.79 | %(3) | 0.83 | %(3) | 0.90 | % | ||||||||||||
Expenses, before reimbursements and credits | 0.61 | % | 0.73 | % | 0.85 | % | 0.99 | % | 0.99 | % | 0.99 | % | ||||||||||||
Net investment income, net of reimbursements and credits | 0.48 | % | 0.32 | %(3) | 0.34 | %(3) | 0.14 | %(3) | 0.32 | %(3) | 0.87 | % | ||||||||||||
Net investment income (loss), before reimbursements and credits | 0.27 | % | (0.01 | )% | (0.13 | )% | (0.06 | )% | 0.16 | % | 0.78 | % | ||||||||||||
Portfolio Turnover Rate | 316.68 | % | 1,567.58 | % | 2,309.43 | % | 1,331.05 | % | 1,061.57 | % | 1,393.08 | % |
(1) | 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. Total return is not annualized for periods less than one year. |
(2) | Annualized for periods less than one year. |
(3) | The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $5,000, $55,000, $297,000 and $652,000, which represent less than 0.005, 0.02, 0.04 and 0.07 percent of average net assets for the fiscal years ended March 31, 2014, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 12 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS SEPT. 30, | FISCAL YEAR ENDED MARCH 31, 2014 | FISCAL YEAR ENDED MARCH 31, 2013 | FISCAL YEAR ENDED MARCH 31, 2012 | FISCAL YEAR ENDED MARCH 31, 2011 | PERIOD ENDED MARCH 31, 2010(1) | ||||||||||||||||||
Net Asset Value, Beginning of Period | $10.16 | $10.16 | $10.13 | $10.12 | $10.10 | $10.00 | ||||||||||||||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.03 | 0.06 | 0.07 | 0.10 | 0.10 | 0.07 | ||||||||||||||||||
Net realized and unrealized gains | – | (2) | – | (2) | 0.04 | 0.02 | 0.03 | 0.10 | ||||||||||||||||
Total from Investment Operations | 0.03 | 0.06 | 0.11 | 0.12 | 0.13 | 0.17 | ||||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income | (0.03 | ) | (0.06 | ) | (0.08 | ) | (0.10 | ) | (0.10 | ) | (0.07 | ) | ||||||||||||
From net realized gains | – | – | (3) | – | (0.01 | ) | (0.01 | ) | – | (3) | ||||||||||||||
Total Distributions Paid | (0.03 | ) | (0.06 | ) | (0.08 | ) | (0.11 | ) | (0.11 | ) | (0.07 | ) | ||||||||||||
Net Asset Value, End of Period | $10.16 | $10.16 | $10.16 | $10.13 | $10.12 | $10.10 | ||||||||||||||||||
Total Return(4) | 0.27 | % | 0.63 | % | 1.08 | % | 1.18 | % | 1.26 | % | 1.71 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $3,128,648 | $2,828,389 | $2,244,236 | $1,345,415 | $696,520 | $328,663 | ||||||||||||||||||
Ratio to average net assets of:(5) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 0.25 | %(6) | 0.25 | %(6) | 0.20 | %(6) | 0.25 | %(6) | 0.24 | %(6) | 0.25 | %(7) | ||||||||||||
Expenses, before reimbursements and credits | 0.34 | % | 0.43 | % | 0.43 | % | 0.43 | % | 0.44 | % | 0.50 | % | ||||||||||||
Net investment income, net of reimbursements and credits | 0.55 | %(6) | 0.60 | %(6) | 0.62 | %(6) | 0.95 | %(6) | 1.01 | %(6) | 0.84 | %(8) | ||||||||||||
Net investment income, before reimbursements and credits | 0.46 | % | 0.42 | % | 0.39 | % | 0.77 | % | 0.81 | % | 0.59 | %(8) | ||||||||||||
Portfolio Turnover Rate | 19.10 | % | 41.85 | % | 32.02 | % | 116.89 | % | 40.44 | % | 32.98 | % |
(1) | Commenced investment operations on June 18, 2009. |
(2) | Per share amounts from net realized and unrealized gains were less than $0.01 per share. |
(3) | Per share amounts from distributions from net realized gains were less than $0.01 per share. |
(4) | 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. Total return is not annualized for periods less than one year. |
(5) | Annualized for periods less than one year. |
(6) | 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, $3,000, $17,000, $16,000 and $28,000, which represent less than 0.001, less than 0.001, less than 0.001, less than 0.005, and 0.01 percent of average net assets for the six months ended September 30, 2014, and the fiscal years ended March 31, 2014, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
(7) | The net expense ratio includes custodian credits of approximately $20,000 which represents 0.01 percent of average net assets for the period from June 18, 2009 (commencement of operations) to March 31, 2010. Absent the custodian credit arrangement, expense reimbursement would have been increased by a corresponding amount. |
(8) | As the Fund commenced investment operations on June 18, 2009, annualized net investment income may not be reflective of amounts that an investor should expect on an annual basis prospectively. |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 13 | FIXED INCOME FUNDS |
Table of Contents
FIXED INCOME FUNDS
FINANCIAL HIGHLIGHTS continued
ULTRA-SHORT FIXED INCOME FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS SEPT. 30, | FISCAL YEAR ENDED MARCH 31, 2014 | FISCAL YEAR ENDED MARCH 31, 2013 | FISCAL 2012 | FISCAL YEAR ENDED MARCH 31, 2011 | PERIOD ENDED MARCH 31, 2010(1) | ||||||||||||||||||
Net Asset Value, Beginning of Period | $10.22 | $10.22 | $10.18 | $10.15 | $10.11 | $10.00 | ||||||||||||||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.04 | 0.07 | 0.10 | 0.12 | 0.10 | 0.08 | ||||||||||||||||||
Net realized and unrealized gains | – | (2) | 0.01 | 0.05 | 0.05 | 0.04 | 0.11 | |||||||||||||||||
Total from Investment Operations | 0.04 | 0.08 | 0.15 | 0.17 | 0.14 | 0.19 | ||||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income | (0.04 | ) | (0.07 | ) | (0.10 | ) | (0.12 | ) | (0.10 | ) | (0.08 | ) | ||||||||||||
From net realized gains | – | (0.01 | ) | (0.01 | ) | (0.02 | ) | – | (3) | – | ||||||||||||||
Total Distributions Paid | (0.04 | ) | (0.08 | ) | (0.11 | ) | (0.14 | ) | (0.10 | ) | (0.08 | ) | ||||||||||||
Net Asset Value, End of Period | $10.22 | $10.22 | $10.22 | $10.18 | $10.15 | $10.11 | ||||||||||||||||||
Total Return(4) | 0.37 | % | 0.77 | % | 1.49 | % | 1.59 | % | 1.47 | % | 1.97 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $1,712,322 | $1,700,630 | $1,101,143 | $464,677 | $371,411 | $173,199 | ||||||||||||||||||
Ratio to average net assets of:(5) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 0.25 | %(6) | 0.25 | %(6) | 0.25 | %(6) | 0.25 | %(6) | 0.24 | %(6) | 0.25 | %(7) | ||||||||||||
Expenses, before reimbursements and credits | 0.35 | % | 0.44 | % | 0.45 | % | 0.44 | % | 0.46 | % | 0.55 | % | ||||||||||||
Net investment income, net of reimbursements and credits | 0.73 | %(6) | 0.70 | %(6) | 0.90 | %(6) | 1.12 | %(6) | 1.04 | %(6) | 1.02 | %(8) | ||||||||||||
Net investment income, before reimbursements and credits | 0.63 | % | 0.51 | % | 0.70 | % | 0.93 | % | 0.82 | % | 0.72 | %(8) | ||||||||||||
Portfolio Turnover Rate | 34.65 | % | 36.50 | % | 49.42 | % | 45.97 | % | 52.01 | % | 26.61 | % |
(1) | Commenced investment operations on June 18, 2009. |
(2) | Per share amounts from net realized and unrealized gains were less than $0.01 per share. |
(3) | Per share amounts from distributions from net realized gains were less than $0.01 per share. |
(4) | 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. Total return is not annualized for periods less than one year. |
(5) | Annualized for periods less than one year. |
(6) | 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 $3,000, $14,000, $26,000, $8,000 and $22,000, which represent less than 0.001, less than 0.005, less than 0.005, less than 0.005 and 0.01 percent of average net assets for six months ended September 30, 2014, and the fiscal years ended March 31, 2014, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
(7) | The net expense ratio includes custodian credits of approximately $11,000 which represents 0.01 percent of average net assets for the period from June 18, 2009 (commencement of operations) to March 31, 2010. Absent the custodian credit arrangement, expense reimbursement would have been increased by a corresponding amount. |
(8) | As the Fund commenced investment operations on June 18, 2009, annualized net investment income may not be reflective of amounts that an investor should expect on an annual basis prospectively. |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 14 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
U.S. GOVERNMENT FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS SEPT. 30, | FISCAL YEAR ENDED MARCH 31, 2014 | FISCAL YEAR ENDED MARCH 31, 2013 | FISCAL YEAR ENDED MARCH 31, 2012 | FISCAL YEAR ENDED MARCH 31, 2011 | FISCAL YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $9.53 | $9.85 | $9.97 | $9.77 | $10.03 | $10.65 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.04 | 0.07 | 0.06 | 0.05 | 0.11 | 0.17 | ||||||||||||||||||
Net realized and unrealized gains (losses) | 0.06 | (0.32 | ) | 0.22 | 0.49 | 0.22 | (0.14 | ) | ||||||||||||||||
Total from Investment Operations | 0.10 | (0.25 | ) | 0.28 | 0.54 | 0.33 | 0.03 | |||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income | (0.04 | ) | (0.07 | ) | (0.07 | ) | (0.06 | ) | (0.12 | ) | (0.17 | ) | ||||||||||||
From net realized gains | – | – | (0.33 | ) | (0.28 | ) | (0.47 | ) | (0.48 | ) | ||||||||||||||
Total Distributions Paid | (0.04 | ) | (0.07 | ) | (0.40 | ) | (0.34 | ) | (0.59 | ) | (0.65 | ) | ||||||||||||
Net Asset Value, End of Period | $9.59 | $9.53 | $9.85 | $9.97 | $9.77 | $10.03 | ||||||||||||||||||
Total Return(1) | 1.05 | % | (2.52 | )% | 2.75 | % | 5.51 | % | 3.31 | % | 0.82 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $30,497 | $34,146 | $49,724 | $61,505 | $74,041 | $98,398 | ||||||||||||||||||
Ratio to average net assets of:(2) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 0.43 | % | 0.41 | %(3) | 0.39 | %(3) | 0.76 | %(3) | 0.85 | %(3) | 0.90 | % | ||||||||||||
Expenses, before reimbursements and credits | 1.11 | % | 1.31 | % | 1.22 | % | 1.14 | % | 1.13 | % | 1.09 | % | ||||||||||||
Net investment income, net of reimbursements and credits | 0.78 | % | 0.65 | %(3) | 0.51 | %(3) | 0.50 | %(3) | 1.00 | %(3) | 1.55 | % | ||||||||||||
Net investment income (loss), before reimbursements and credits | 0.10 | % | (0.25 | )% | (0.32 | )% | 0.12 | % | 0.72 | % | 1.36 | % | ||||||||||||
Portfolio Turnover Rate | 270.95 | % | 1,734.43 | % | 2,761.35 | % | 1,609.59 | % | 982.00 | % | 1,271.78 | % |
(1) | 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. Total return is not annualized for periods less than one year. |
(2) | Annualized for periods less than one year. |
(3) | The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $1,000, $11,000, $13,000 and $41,000, which represent less than 0.005, 0.02, 0.02, and 0.05 percent of average net assets for the fiscal years ended March 31, 2014, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 15 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
CORE BOND FUND
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
ASSET-BACKED SECURITIES – 10.1% | ||||||||
Commercial Mortgage-Backed Securities – 9.5% |
| |||||||
Banc of America Commercial Mortgage Trust, Series 2006-5, Class A4, | $560 | $595 | ||||||
Bear Stearns Commercial Mortgage Securities Trust, Series 2006-T24, Class A4, | 1,366 | 1,463 | ||||||
Bear Stearns Commercial Mortgage Securities Trust, Series 2007-PW16, Class A4, | 1,005 | 1,104 | ||||||
Bear Stearns Commercial Mortgage Securities Trust, Series 2007-T28, Class A4, | 825 | 908 | ||||||
Citigroup Commercial Mortgage Trust, Series 2007-C6, Class A4, | 1,320 | 1,448 | ||||||
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2006-CD3, Class A5, | 1,248 | 1,317 | ||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2006-CB16, Class A4, | 519 | 550 | ||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2007-CB18, Class A4, | 774 | 833 | ||||||
JPMBB Commercial Mortgage Securities Trust, Series 2014-C19, Class A2, | 555 | 571 | ||||||
LB-UBS Commercial Mortgage Trust, Series 2006-C7, Class A3, | 1,460 | 1,568 | ||||||
LB-UBS Commercial Mortgage Trust, Series 2008-C1, Class A2, | 1,050 | 1,175 | ||||||
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C16, | 340 | 346 | ||||||
Morgan Stanley Capital I Trust, | 1,318 | 1,412 | ||||||
Morgan Stanley Capital I Trust, | 479 | 523 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
ASSET-BACKED SECURITIES – 10.1% – continued | ||||||||
Commercial Mortgage-Backed Securities – 9.5% – continued |
| |||||||
Morgan Stanley Capital I Trust, Series 2007-T27, Class A4, | $1,050 | $1,153 | ||||||
Morgan Stanley Capital I Trust, Series 2008-T29, Class A4, | 862 | 971 | ||||||
Wachovia Bank Commercial Mortgage Trust, Series 2006-C29, Class A4, | 1,027 | 1,096 | ||||||
17,033 | ||||||||
Credit Card – 0.6% | ||||||||
Citibank Credit Card Issuance Trust, Series 2014-A2, Class A2, | 1,135 | 1,130 | ||||||
Total Asset-Backed Securities | ||||||||
(Cost $18,327) | 18,163 | |||||||
CORPORATE BONDS – 27.7% | ||||||||
Auto Parts Manufacturing – 0.3% |
| |||||||
BorgWarner, Inc., | 240 | 258 | ||||||
Delphi Corp., | 260 | 285 | ||||||
543 | ||||||||
Automobiles Manufacturing – 1.0% |
| |||||||
Daimler Finance North America LLC, | 200 | 201 | ||||||
Ford Motor Co., | 95 | 126 | ||||||
Ford Motor Credit Co. LLC, | 400 | 424 | ||||||
3.66%, 9/8/24 | 350 | 343 | ||||||
Hyundai Capital America, | 290 | 306 | ||||||
Nissan Motor Acceptance Corp., | 120 | 122 | ||||||
2.35%, 3/4/19 (1)(2) | 240 | 240 | ||||||
1,762 | ||||||||
Banks – 0.5% |
| |||||||
Branch Banking & Trust Co., | 100 | 99 | ||||||
Capital One N.A., | 355 | 350 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 16 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 27.7% – continued | ||||||||
Banks – 0.5% – continued | ||||||||
Discover Bank, | $125 | $125 | ||||||
4.25%, 3/13/26 | 145 | 148 | ||||||
Fifth Third Bancorp, | 100 | 100 | ||||||
PNC Financial Services Group (The), Inc., | 165 | 156 | ||||||
978 | ||||||||
Biotechnology – 0.8% | ||||||||
Amgen, Inc., | 265 | 263 | ||||||
Celgene Corp., | 205 | 223 | ||||||
Gilead Sciences, Inc., | 215 | 224 | ||||||
2.05%, 4/1/19 | 200 | 198 | ||||||
Roche Holdings, Inc., | 450 | 448 | ||||||
1,356 | ||||||||
Cable & Satellite – 0.9% | ||||||||
Comcast Corp., | 290 | 331 | ||||||
4.25%, 1/15/33 | 245 | 248 | ||||||
6.40%, 5/15/38 | 210 | 268 | ||||||
DIRECTV Holdings LLC/DIRECTV Financing Co., Inc., | 100 | 102 | ||||||
5.20%, 3/15/20 | 260 | 291 | ||||||
5.15%, 3/15/42 | 360 | 364 | ||||||
1,604 | ||||||||
Chemicals – 0.5% | ||||||||
CF Industries, Inc., | 100 | 105 | ||||||
Eastman Chemical Co., | 385 | 393 | ||||||
4.65%, 10/15/44 | 295 | 281 | ||||||
Monsanto Co., | 200 | 206 | ||||||
985 | ||||||||
Commercial Finance – 0.8% | ||||||||
Air Lease Corp., | 185 | 200 | ||||||
3.88%, 4/1/21 | 185 | 187 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 27.7% – continued | ||||||||
Commercial Finance – 0.8% – continued | ||||||||
General Electric Capital Corp., | $690 | $780 | ||||||
6.25%, 12/15/22 | 250 | 269 | ||||||
1,436 | ||||||||
Communications Equipment – 0.1% | ||||||||
Apple, Inc., | 150 | 153 | ||||||
CC Holdings GS V LLC/Crown Castle GS III Corp., | 75 | 76 | ||||||
229 | ||||||||
Consumer Finance – 0.1% | ||||||||
Countrywide Financial Corp., | 205 | 221 | ||||||
Consumer Services – 0.5% | ||||||||
Ecolab, Inc., | 425 | 422 | ||||||
ERAC USA Finance LLC, | 125 | 125 | ||||||
7.00%, 10/15/37 (1)(2) | 220 | 291 | ||||||
838 | ||||||||
Containers & Packaging – 0.2% | ||||||||
International Paper Co., | 250 | 243 | ||||||
4.80%, 6/15/44 | 180 | 174 | ||||||
417 | ||||||||
Diversified Banks – 3.3% | ||||||||
Bank of America Corp., | 135 | 142 | ||||||
6.00%, 9/1/17 | 170 | 190 | ||||||
2.60%, 1/15/19 | 465 | 464 | ||||||
2.65%, 4/1/19 | 500 | 498 | ||||||
4.13%, 1/22/24 | 330 | 336 | ||||||
7.75%, 5/14/38 | 290 | 392 | ||||||
5.00%, 1/21/44 | 410 | 433 | ||||||
Citigroup, Inc., | 450 | 449 | ||||||
6.00%, 8/15/17 | 200 | 224 | ||||||
2.50%, 7/29/19 | 210 | 208 | ||||||
4.00%, 8/5/24 | 305 | 299 | ||||||
6.68%, 9/13/43 | 115 | 141 | ||||||
JPMorgan Chase & Co., | 465 | 464 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 17 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
CORE BOND FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 27.7% – continued | ||||||||
Diversified Banks – 3.3% – continued |
| |||||||
7.90%, 4/30/18 | $135 | $146 | ||||||
6.30%, 4/23/19 | 340 | 394 | ||||||
5.00%, 7/1/19 | 265 | 258 | ||||||
5.15%, 5/1/23 | 115 | 110 | ||||||
3.88%, 9/10/24 | 320 | 314 | ||||||
Wells Fargo & Co., | 135 | 148 | ||||||
2.15%, 1/15/19 | 300 | 300 | ||||||
5,910 | ||||||||
Electrical Equipment Manufacturing – 0.2% |
| |||||||
General Electric Co., | 135 | 140 | ||||||
Roper Industries, Inc., | 125 | 145 | ||||||
285 | ||||||||
Entertainment Content – 0.6% |
| |||||||
CBS Corp., | 475 | 481 | ||||||
4.30%, 2/15/21 | 100 | 107 | ||||||
Time Warner, Inc., | 270 | 313 | ||||||
Viacom, Inc., | 260 | 239 | ||||||
1,140 | ||||||||
Exploration & Production – 0.5% |
| |||||||
Continental Resources, Inc., | 290 | 306 | ||||||
Kerr-McGee Corp., | 450 | 566 | ||||||
872 | ||||||||
Financial Services – 3.7% |
| |||||||
Ares Capital Corp., | 280 | 296 | ||||||
Blackstone Holdings Finance Co. LLC, | 265 | 278 | ||||||
Carlyle Holdings II Finance LLC, | 335 | 377 | ||||||
Charles Schwab (The) Corp., | 168 | 170 | ||||||
FMR LLC, | 345 | 438 | ||||||
Goldman Sachs Group (The), Inc., | 345 | 374 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 27.7% – continued | ||||||||
Financial Services – 3.7% – continued |
| |||||||
2.90%, 7/19/18 | $225 | $230 | ||||||
2.63%, 1/31/19 | 330 | 329 | ||||||
5.75%, 1/24/22 | 355 | 404 | ||||||
4.00%, 3/3/24 | 460 | 463 | ||||||
6.45%, 5/1/36 | 405 | 471 | ||||||
6.75%, 10/1/37 | 205 | 245 | ||||||
4.80%, 7/8/44 | 130 | 131 | ||||||
Icahn Enterprises L.P./Icahn Enterprises Finance Corp., | 170 | 170 | ||||||
KKR Group Finance Co. III LLC, | 125 | 130 | ||||||
KKR Group Finance Co. LLC, | 105 | 123 | ||||||
Morgan Stanley, | 130 | 140 | ||||||
2.50%, 1/24/19 | 850 | 850 | ||||||
2.38%, 7/23/19 | 210 | 207 | ||||||
3.88%, 4/29/24 | 160 | 160 | ||||||
5.00%, 11/24/25 | 270 | 282 | ||||||
Prospect Capital Corp., | 275 | 286 | ||||||
6,554 | ||||||||
Food & Beverage – 0.4% |
| |||||||
Anheuser-Busch InBev Finance, Inc., | 200 | 199 | ||||||
ConAgra Foods, Inc., | 187 | 187 | ||||||
Diageo Investment Corp., | 100 | 98 | ||||||
Mead Johnson Nutrition Co., | 120 | 121 | ||||||
SABMiller Holdings, Inc., | 25 | 25 | ||||||
Tyson Foods, Inc., | 135 | 139 | ||||||
769 | ||||||||
Hardware – 0.2% |
| |||||||
NetApp, Inc., | 315 | 317 | ||||||
Health Care Facilities & Services – 0.8% |
| |||||||
Cardinal Health, Inc., | 200 | 202 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 18 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 27.7% – continued | ||||||||
Health Care Facilities & Services – 0.8% – continued |
| |||||||
1.70%, 3/15/18 | $233 | $231 | ||||||
Express Scripts Holding Co., | 260 | 269 | ||||||
McKesson Corp., | 75 | 75 | ||||||
5.70%, 3/1/17 | 100 | 110 | ||||||
3.80%, 3/15/24 | 340 | 343 | ||||||
4.88%, 3/15/44 | 240 | 247 | ||||||
1,477 | ||||||||
Leisure Products Manufacturing – 0.3% |
| |||||||
Hasbro, Inc., | 560 | 581 | ||||||
Life Insurance – 1.7% |
| |||||||
Lincoln National Corp., | 255 | 261 | ||||||
MetLife, Inc., | 290 | 323 | ||||||
4.88%, 11/13/43 | 220 | 234 | ||||||
Metropolitan Life Global Funding I, | 180 | 180 | ||||||
Principal Financial Group, Inc., | 190 | 190 | ||||||
Protective Life Corp., | 520 | 779 | ||||||
Prudential Financial, Inc., | 175 | 181 | ||||||
2.35%, 8/15/19 | 195 | 193 | ||||||
5.63%, 6/15/43 | 205 | 214 | ||||||
4.60%, 5/15/44 | 155 | 154 | ||||||
Reinsurance Group of America, Inc., | 290 | 309 | ||||||
3,018 | ||||||||
Machinery Manufacturing – 0.1% |
| |||||||
Ingersoll-Rand Global Holding Co. Ltd., | 225 | 264 | ||||||
Managed Care – 0.5% |
| |||||||
Cigna Corp., | 200 | 207 | ||||||
Humana, Inc., | 220 | 220 | ||||||
4.63%, 12/1/42 | 130 | 127 | ||||||
WellPoint, Inc., | 100 | 100 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 27.7% – continued | ||||||||
Managed Care – 0.5% – continued |
| |||||||
2.25%, 8/15/19 | $165 | $162 | ||||||
816 | ||||||||
Medical Equipment & Devices Manufacturing – 0.7% |
| |||||||
Agilent Technologies, Inc., | 295 | 340 | ||||||
Baxter International, Inc., | 330 | 370 | ||||||
Thermo Fisher Scientific, Inc., | 105 | 108 | ||||||
4.15%, 2/1/24 | 360 | 373 | ||||||
1,191 | ||||||||
Metals & Mining – 0.3% |
| |||||||
Commercial Metals Co., | 130 | 145 | ||||||
Freeport-McMoRan Copper & Gold, Inc., | 205 | 209 | ||||||
Glencore Funding LLC, | 215 | 215 | ||||||
569 | ||||||||
Oil & Gas Services & Equipment – 0.5% |
| |||||||
Diamond Offshore Drilling, Inc., | 210 | 195 | ||||||
Freeport-McMoran Oil & Gas LLC/FCX Oil & Gas, Inc., | 49 | 54 | ||||||
Rowan Cos., Inc., | 261 | 271 | ||||||
5.40%, 12/1/42 | 365 | 342 | ||||||
862 | ||||||||
Pipeline – 0.8% |
| |||||||
Energy Transfer Partners L.P., | 210 | 204 | ||||||
6.50%, 2/1/42 | 265 | 302 | ||||||
Enterprise Products Operating LLC, | 225 | 255 | ||||||
Kinder Morgan Energy Partners L.P., | 330 | 369 | ||||||
Williams (The) Cos., Inc., | 190 | 187 | ||||||
Williams Partners L.P., | 170 | 172 | ||||||
1,489 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 19 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
CORE BOND FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 27.7% – continued | ||||||||
Power Generation – 0.3% | ||||||||
Exelon Generation Co. LLC, | $100 | $112 | ||||||
4.00%, 10/1/20 | 425 | 448 | ||||||
560 | ||||||||
Property & Casualty Insurance – 0.6% | ||||||||
American International Group, Inc., | 90 | 91 | ||||||
3.38%, 8/15/20 | 425 | 438 | ||||||
8.18%, 5/15/58 | 250 | 337 | ||||||
Liberty Mutual Group, Inc., | 220 | 240 | ||||||
1,106 | ||||||||
Publishing & Broadcasting – 0.4% | ||||||||
21st Century Fox America, Inc., | 215 | 254 | ||||||
6.90%, 8/15/39 | 345 | 443 | ||||||
697 | ||||||||
Railroad – 0.3% | ||||||||
Burlington Northern Santa Fe LLC, | 260 | 260 | ||||||
CSX Corp., | 195 | 204 | ||||||
464 | ||||||||
Real Estate – 1.4% | ||||||||
ARC Properties Operating Partnership L.P./Clark Acquisition LLC, | 110 | 112 | ||||||
EPR Properties, | 20 | 22 | ||||||
5.25%, 7/15/23 | 230 | 242 | ||||||
ERP Operating L.P., | 205 | 202 | ||||||
HCP, Inc., | 70 | 74 | ||||||
Kimco Realty Corp., | 115 | 127 | ||||||
Omega Healthcare Investors, Inc., | 705 | 717 | ||||||
Prologis L.P., | 155 | 155 | ||||||
Simon Property Group L.P., | 200 | 204 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 27.7% – continued | ||||||||
Real Estate – 1.4% – continued | ||||||||
Ventas Realty L.P., | $180 | $207 | ||||||
WEA Finance LLC/Westfield UK & Europe Finance PLC, | 210 | 210 | ||||||
4.75%, 9/17/44 (1)(2) | 235 | 238 | ||||||
2,510 | ||||||||
Refining & Marketing – 0.2% | ||||||||
Marathon Petroleum Corp., | 160 | 157 | ||||||
Phillips 66, | 245 | 254 | ||||||
411 | ||||||||
Restaurants – 0.1% | ||||||||
McDonald’s Corp., | 130 | 147 | ||||||
Retail – Consumer Discretionary – 0.1% | ||||||||
QVC, Inc., | 140 | 138 | ||||||
Retail – Consumer Staples – 0.3% | ||||||||
Bunge Ltd. Finance Corp., | 325 | 339 | ||||||
8.50%, 6/15/19 | 115 | 143 | ||||||
482 | ||||||||
Semiconductors – 0.1% | ||||||||
Samsung Electronics America, Inc., | 160 | 160 | ||||||
Software & Services – 0.6% | ||||||||
Autodesk, Inc., | 310 | 311 | ||||||
CA, Inc., | 70 | 71 | ||||||
Oracle Corp., | 190 | 189 | ||||||
4.30%, 7/8/34 | 315 | 317 | ||||||
Symantec Corp., | 70 | 71 | ||||||
Xerox Corp., | 70 | 71 | ||||||
1,030 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 20 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 27.7% – continued | ||||||||
Supermarkets & Pharmacies – 0.2% | ||||||||
CVS Caremark Corp., | $186 | $207 | ||||||
4.00%, 12/5/23 | 100 | 104 | ||||||
CVS Health Corp., | 140 | 138 | ||||||
449 | ||||||||
Tobacco – 0.5% | ||||||||
Altria Group, Inc., | 350 | 373 | ||||||
Lorillard Tobacco Co., | 430 | 526 | ||||||
899 | ||||||||
Travel & Lodging – 0.1% | ||||||||
Wyndham Worldwide Corp., | 200 | 201 | ||||||
Utilities – 1.1% | ||||||||
CenterPoint Energy, Inc., | 190 | 219 | ||||||
CMS Energy Corp., | 245 | 311 | ||||||
Exelon Corp., | 170 | 191 | ||||||
ITC Holdings Corp., | 210 | 209 | ||||||
Jersey Central Power & Light Co., | 265 | 281 | ||||||
NextEra Energy Capital Holdings, Inc., | 330 | 328 | ||||||
Progress Energy, Inc., | 280 | 394 | ||||||
1,933 | ||||||||
Wireless Telecommunications Services – 1.1% |
| |||||||
SBA Tower Trust, | 195 | 198 | ||||||
Verizon Communications, Inc., | 130 | 129 | ||||||
3.65%, 9/14/18 | 460 | 485 | ||||||
3.50%, 11/1/21 | 435 | 440 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 27.7% – continued | ||||||||
Wireless Telecommunications Services – 1.1% – continued |
| |||||||
6.40%, 9/15/33 | $315 | $384 | ||||||
6.55%, 9/15/43 | 215 | 268 | ||||||
1,904 | ||||||||
Total Corporate Bonds | ||||||||
(Cost $48,633) | 49,574 | |||||||
FOREIGN ISSUER BONDS – 5.4% | ||||||||
Banks – 1.4% |
| |||||||
Australia & New Zealand Banking Group Ltd., | 460 | 464 | ||||||
Credit Suisse, | 345 | 385 | ||||||
DBS Group Holdings Ltd., | 320 | 317 | ||||||
Deutsche Bank A.G., | 445 | 447 | ||||||
Lloyds Bank PLC, | 300 | 301 | ||||||
6.50%, 9/14/20 (1)(2) | 215 | 250 | ||||||
Mizuho Bank Ltd., | 200 | 199 | ||||||
Westpac Banking Corp., | 200 | 202 | ||||||
2,565 | ||||||||
Chemicals – 0.2% |
| |||||||
Agrium, Inc., | 105 | 107 | ||||||
Braskem Finance Ltd., | 130 | 135 | ||||||
LYB International Finance B.V., | 120 | 122 | ||||||
Potash Corp. of Saskatchewan, Inc., | 80 | 84 | ||||||
448 | ||||||||
Diversified Banks – 0.9% |
| |||||||
HSBC Holdings PLC, | 245 | 243 | ||||||
5.25%, 3/14/44 | 235 | 250 | ||||||
Nordea Bank AB, | 630 | 619 | ||||||
Royal Bank of Canada, | 300 | 298 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 21 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
CORE BOND FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 5.4% – continued | ||||||||
Diversified Banks – 0.9% – continued | ||||||||
Royal Bank of Scotland Group PLC, | $200 | $200 | ||||||
1,610 | ||||||||
Exploration & Production – 0.5% | ||||||||
Canadian Natural Resources Ltd., | 300 | 332 | ||||||
Petro-Canada, | 345 | 393 | ||||||
Petroleos Mexicanos, | 205 | 225 | ||||||
950 | ||||||||
Food & Beverage – 0.4% | ||||||||
Heineken N.V., | 75 | 75 | ||||||
Pernod Ricard S.A., | 70 | 72 | ||||||
4.45%, 1/15/22 (1)(2) | 110 | 116 | ||||||
SABMiller PLC, | 105 | 115 | ||||||
Suntory Holdings Ltd., | 360 | 360 | ||||||
738 | ||||||||
Hardware – 0.2% | ||||||||
Seagate HDD Cayman, | 295 | 294 | ||||||
Integrated Oils – 0.3% | ||||||||
BP Capital Markets PLC, | 215 | 214 | ||||||
Petrobras International Finance Co., | 85 | 86 | ||||||
5.38%, 1/27/21 | 260 | 263 | ||||||
563 | ||||||||
Internet Media – 0.2% | ||||||||
Baidu, Inc., | 425 | 438 | ||||||
Machinery Manufacturing – 0.2% | ||||||||
Pentair Finance S.A., | 195 | 196 | ||||||
Tyco Electronics Group S.A., | 100 | 114 | ||||||
310 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 5.4% – continued | ||||||||
Medical Equipment & Devices Manufacturing – 0.1% |
| |||||||
Covidien International Finance S.A., | $110 | $111 | ||||||
Oil & Gas Services & Equipment – 0.1% | ||||||||
Ensco PLC, | 165 | 165 | ||||||
Pharmaceuticals – 0.1% | ||||||||
Actavis Funding SCS, | 135 | 131 | ||||||
Pipeline – 0.1% | ||||||||
TransCanada PipeLines Ltd., | 100 | 100 | ||||||
Property & Casualty Insurance – 0.5% | ||||||||
Allied World Assurance Co. Holdings Ltd., | 255 | 283 | ||||||
5.50%, 11/15/20 | 190 | 212 | ||||||
XL Group PLC, | 450 | 435 | ||||||
930 | ||||||||
Railroad – 0.1% | ||||||||
Canadian National Railway Co., | 100 | 101 | ||||||
Utilities – 0.1% | ||||||||
PPL WEM Holdings PLC, | 225 | 234 | ||||||
Total Foreign Issuer Bonds | ||||||||
(Cost $9,549) | 9,688 | |||||||
U.S. GOVERNMENT AGENCIES – 17.7% (3) | ||||||||
Fannie Mae – 15.9% | ||||||||
Pool #535714, | 13 | 14 | ||||||
Pool #555599, | 32 | 36 | ||||||
Pool #656035, | 7 | 7 | ||||||
Pool #712130, | 17 | 20 | ||||||
Pool #890009, | 168 | 188 | ||||||
Pool #890384, | 28 | 30 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 22 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 17.7% (3) – continued | ||||||||
Fannie Mae – 15.9% – continued |
| |||||||
Pool #893082, | $217 | $233 | ||||||
Pool #932638, | 429 | 477 | ||||||
Pool #AA7583, | 24 | 26 | ||||||
Pool #AB1470, | 488 | 528 | ||||||
Pool #AB2693, | 600 | 650 | ||||||
Pool #AB3114, | 374 | 416 | ||||||
Pool #AB9522, | 1,819 | 1,862 | ||||||
Pool #AC6118, | 470 | 508 | ||||||
Pool #AC9581, | 242 | 272 | ||||||
Pool #AD0915, | 274 | 308 | ||||||
Pool #AD6929, | 328 | 365 | ||||||
Pool #AH1166, | 785 | 850 | ||||||
Pool #AH1507, | 336 | 366 | ||||||
Pool #AH9109, | 32 | 35 | ||||||
Pool #AL4908, | 555 | 588 | ||||||
Pool #AW2706, | 3,618 | 3,822 | ||||||
Pool TBA, | 4,975 | 4,904 | ||||||
3.50%, 10/14/44 (4) | 5,575 | 5,698 | ||||||
4.00%, 10/14/44 (4) | 1,450 | 1,528 | ||||||
4.50%, 10/14/44 (4) | 2,175 | 2,347 | ||||||
5.00%, 10/14/44 (4) | 2,125 | 2,345 | ||||||
28,423 | ||||||||
Freddie Mac – 0.4% |
| |||||||
Pool #1B3575, | 49 | 50 | ||||||
Pool #1G2296, | 198 | 212 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 17.7% (3) – continued | ||||||||
Freddie Mac – 0.4% – continued |
| |||||||
Pool #1J0365, | $169 | $182 | ||||||
Pool #1J2840, | 210 | 226 | ||||||
670 | ||||||||
Freddie Mac Gold – 1.0% |
| |||||||
Pool #A65182, | 519 | 605 | ||||||
Pool #C02790, | 314 | 355 | ||||||
Pool #C02838, | 258 | 288 | ||||||
Pool #C03517, | 273 | 294 | ||||||
Pool #G01954, | 219 | 242 | ||||||
1,784 | ||||||||
Government National Mortgage Association – 0.3% |
| |||||||
Series 2012-2, Class A, | 305 | 308 | ||||||
Series 2013-45, Class A, | 288 | 283 | ||||||
591 | ||||||||
Government National Mortgage Association I – 0.0% |
| |||||||
Pool #604183, | 9 | 10 | ||||||
Pool #633627, | 12 | 14 | ||||||
24 | ||||||||
Government National Mortgage Association II – 0.1% |
| |||||||
Pool #82581, | 240 | 253 | ||||||
Total U.S. Government Agencies | ||||||||
(Cost $31,241) | 31,745 | |||||||
U.S. GOVERNMENT OBLIGATIONS – 37.2% | ||||||||
U.S. Treasury Bonds – 3.8% |
| |||||||
5.38%, 2/15/31 | 1,520 | 2,012 | ||||||
4.50%, 2/15/36 | 875 | 1,080 | ||||||
3.38%, 5/15/44 | 3,210 | 3,314 | ||||||
3.13%, 8/15/44 | 360 | 354 | ||||||
6,760 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 23 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
CORE BOND FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT OBLIGATIONS – 37.2% – continued | ||||||||
U.S. Treasury Notes – 31.8% | ||||||||
1.25%, 10/31/15 | $8,945 | $9,049 | ||||||
0.50%, 9/30/16 | 9,495 | 9,479 | ||||||
1.00%, 9/15/17 | 9,820 | 9,805 | ||||||
1.75%, 9/30/19 | 12,245 | 12,229 | ||||||
2.13%, 9/30/21 | 13,530 | 13,445 | ||||||
2.38%, 8/15/24 | 3,070 | 3,035 | ||||||
57,042 | ||||||||
U.S. Treasury Strips – 1.6% | ||||||||
2.52%, 5/15/25 (5) | 2,165 | 1,615 | ||||||
2.49%, 8/15/31 (5) | 980 | 575 | ||||||
2.27%, 2/15/38 (5) | 1,620 | 764 | ||||||
2,954 | ||||||||
Total U.S. Government Obligations | ||||||||
(Cost $66,522) | 66,756 | |||||||
NUMBER OF SHARES | VALUE (000s) | |||||||
INVESTMENT COMPANIES – 11.4% | ||||||||
Northern Institutional Funds - Diversified Assets Portfolio, 0.01% (6)(7) | 20,451,472 | $20,451 | ||||||
Total Investment Companies | ||||||||
(Cost $20,451) | 20,451 | |||||||
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
SHORT-TERM INVESTMENTS – 0.6% | ||||||||
U.S. Treasury Bill, | $1,000 | $999 | ||||||
Total Short-Term Investments | ||||||||
(Cost $999) | 999 | |||||||
Total Investments – 110.1% | ||||||||
(Cost $195,722) | 197,376 | |||||||
Liabilities less Other Assets – (10.1)% | (18,068 | ) | ||||||
NET ASSETS – 100.0% | $179,308 |
(1) | Restricted security that has been deemed illiquid. At September 30, 2014, the value of these restricted illiquid securities amounted to approximately $9,014,000 or 5.0% of net assets. Additional information on each restricted illiquid security is as follows: |
SECURITY | ACQUISITION AND ENFORCEABLE DATE | ACQUISITION (000s) | ||||
Actavis Funding SCS, 3.85%, 6/15/24 | 6/10/14 | $134 | ||||
ARC Properties Operating Partnership L.P./Clark Acquisition LLC, 4.60%, 2/6/24 | 2/4/14 | 110 | ||||
Australia & New Zealand Banking Group Ltd., 4.50%, 3/19/24 | 3/12/14-4/22/14 | 460 | ||||
Blackstone Holdings Finance Co. LLC, 5.00%, 6/15/44 | 4/2/14 | 261 | ||||
Carlyle Holdings II Finance LLC, 5.63%, 3/30/43 | 3/5/14 | 349 | ||||
Daimler Finance North America LLC, 1.45%, 8/1/16 | 4/3/14 | 202 | ||||
DBS Group Holdings Ltd., 2.25%, 7/16/19 | 7/9/14 | 320 | ||||
ERAC USA Finance LLC, 3.85%, 11/15/24 | 5/19/14 | 125 | ||||
ERAC USA Finance LLC, 7.00%, 10/15/37 | 10/10/07 | 218 | ||||
FMR LLC, 6.45%, 11/15/39 | 1/6/10 | 328 | ||||
Glencore Funding LLC, 3.13%, 4/29/19 | 4/22/14 | 214 | ||||
Heineken N.V., 1.40%, 10/1/17 | 10/2/12 | 75 | ||||
Hyundai Capital America, 4.00%, 6/8/17 | 12/1/11-6/5/14 | 304 | ||||
Jersey Central Power & Light Co., 4.70%, 4/1/24 | 8/14/13-8/26/14 | 274 | ||||
KKR Group Finance Co. III LLC, 5.13%, 6/1/44 | 5/21/14 | 123 | ||||
KKR Group Finance Co. LLC, 6.38%, 9/29/20 | 4/15/13 | 126 | ||||
Liberty Mutual Group, Inc., 5.00%, 6/1/21 | 4/12/13-4/3/14 | 242 | ||||
Lloyds Bank PLC, 6.50%, 9/14/20 | 9/7/10 | 214 | ||||
Metropolitan Life Global Funding I, 1.30%, 4/10/17 | 4/7/14 | 180 | ||||
Mizuho Bank Ltd., 2.45%, 4/16/19 | 4/9/14 | 200 | ||||
Nissan Motor Acceptance Corp., 4.50%, 1/30/15 | 1/20/10 | 119 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 24 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
SECURITY | ACQUISITION AND ENFORCEABLE DATE | ACQUISITION (000s) | ||||
Nissan Motor Acceptance Corp., 2.35%, 3/4/19 | 2/25/14 | $240 | ||||
Nordea Bank AB, 5.50%, 9/23/19 | 9/16/14 | 630 | ||||
Omega Healthcare Investors, Inc., 4.95%, 4/1/24 | 3/6/14-6/5/14 | 698 | ||||
Pernod Ricard S.A., 2.95%, 1/15/17 | 4/12/13 | 74 | ||||
Pernod Ricard S.A., 4.45%, 1/15/22 | 10/20/11 | 110 | ||||
PPL WEM Holdings PLC, 3.90%, 5/1/16 | 4/18/11 | 225 | ||||
QVC, Inc., 4.45%, 2/15/25 | 8/7/14 | 140 | ||||
Roche Holdings, Inc., 2.25%, 9/30/19 | 9/22/14 | 449 | ||||
SABMiller PLC, 6.50%, 7/1/16 | 10/28/10 | 126 | ||||
Samsung Electronics America, Inc., 1.75%, 4/10/17 | 4/2/12 | 159 | ||||
SBA Tower Trust, 2.93%, 12/15/17 | 6/12/14 | 201 | ||||
Seagate HDD Cayman, 4.75%, 1/1/25 | 6/11/14 | 293 | ||||
Suntory Holdings Ltd., 2.55%, 9/29/19 | 9/24/14 | 359 | ||||
WEA Finance LLC/Westfield UK & Europe Finance PLC, 1.75%, 9/15/17 | 9/10/14 | 210 | ||||
WEA Finance LLC/Westfield UK & Europe Finance PLC, 4.75%, 9/17/44 | 9/10/14 | 234 |
(2) | 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. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Trustees of Northern Funds. |
(3) | The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury. On September 7, 2008, the Federal Housing Finance Agency (“FHFA”) placed Fannie Mae and Freddie Mac in conservatorship. The United States Treasury has put in place a set of financing agreements to ensure that these entities continue to meet their obligations to holders of bonds that they have issued or guaranteed. |
(4) | When-Issued Security. |
(5) | Zero coupon bond reflects effective yield on the date of purchase. |
(6) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
(7) | At March 31, 2014, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $977,000 with net purchases of approximately $19,474,000 during the six months ended September 30, 2014. |
(8) | Security pledged related to the Fund’s investment in futures contracts during the period. As of September 30, 2014, the Fund did not hold any open futures contracts. |
Percentages shown are based on Net Assets.
At September 30, 2014, the credit quality distribution for the Fund as a percentage of investments including cash was:
QUALITY DISTRIBUTION* | % OF INVESTMENTS | |||
U.S. Treasury | 34.8% | |||
U.S. Agency | 15.6 | |||
AAA | 7.9 | |||
AA | 2.6 | |||
A | 8.5 | |||
BBB | 20.1 | |||
BB | 0.1 | |||
Cash Equivalents | 10.4 | |||
Total | 100.0% |
* Credit quality ratings are based on the conservative average of Moody’s, Standard & Poor’s and Fitch ratings. If ratings from all three rating agencies disagree, the model assigns the middle rating to the security. If two of the three agree, the model assigns the rating from those two to the security. If none of these three rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 25 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
CORE BOND FUND continued | SEPTEMBER 30, 2014 (UNAUDITED) |
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Asset-Backed Securities | $ – | $18,163 | (1) | $– | $18,163 | |||||||||||
Corporate Bonds | – | 49,574 | (1) | – | 49,574 | |||||||||||
Foreign Issuer Bonds | – | 9,688 | (1) | – | 9,688 | |||||||||||
U.S. Government Agencies | – | 31,745 | (1) | – | 31,745 | |||||||||||
U.S. Government Obligations | – | 66,756 | (1) | – | 66,756 | |||||||||||
Investment Companies | 20,451 | – | – | 20,451 | ||||||||||||
Short-Term Investments | – | 999 | – | 999 | ||||||||||||
Total Investments | $20,451 | $176,925 | $– | $197,376 |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 26 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
FIXED INCOME FUND | SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
ASSET-BACKED SECURITIES – 9.6% | ||||||||
Commercial Mortgage-Backed Securities – 9.6% |
| |||||||
Banc of America Commercial Mortgage Trust, Series 2006-5, Class A4, | $8,692 | $9,232 | ||||||
Bear Stearns Commercial Mortgage Securities Trust, Series 2006-T24, Class A4, | 9,893 | 10,596 | ||||||
Bear Stearns Commercial Mortgage Securities Trust, Series 2007-PW16, Class A4, | 4,145 | 4,553 | ||||||
Bear Stearns Commercial Mortgage Securities Trust, Series 2007-T28, Class A4, | 10,290 | 11,327 | ||||||
Citigroup Commercial Mortgage Trust, Series 2007-C6, Class A4, | 7,861 | 8,623 | ||||||
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2006-CD3, Class A5, | 11,694 | 12,343 | ||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2006-CB16, Class A4, | 9,603 | 10,168 | ||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2007-CB18, Class A4, | 6,875 | 7,405 | ||||||
JPMBB Commercial Mortgage Securities Trust, Series 2014-C19, Class A2, | 7,015 | 7,214 | ||||||
LB-UBS Commercial Mortgage Trust, Series 2008-C1, Class A2, | 7,178 | 8,032 | ||||||
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C16, Class A2, | 3,635 | 3,700 | ||||||
Morgan Stanley Capital I Trust, Series 2006-IQ12, Class A4, | 13,349 | 14,294 | ||||||
Morgan Stanley Capital I Trust, Series 2007-IQ16, Class A4, | 5,984 | 6,539 | ||||||
Morgan Stanley Capital I Trust, Series 2007-T27, Class A4, | 7,475 | 8,209 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
ASSET-BACKED SECURITIES – 9.6% – continued | ||||||||
Commercial Mortgage-Backed Securities – 9.6% – continued |
| |||||||
Morgan Stanley Capital I Trust, Series 2008-T29, Class A4, | $7,180 | $8,090 | ||||||
Wachovia Bank Commercial Mortgage Trust, Series 2006-C29, Class A4, | 13,667 | 14,587 | ||||||
144,912 | ||||||||
Total Asset-Backed Securities | ||||||||
(Cost $146,842) | 144,912 | |||||||
CORPORATE BONDS – 41.4% | ||||||||
Auto Parts Manufacturing – 0.5% | ||||||||
BorgWarner, Inc., | 3,350 | 3,594 | ||||||
Dana Holding Corp., | 3,000 | 3,176 | ||||||
6,770 | ||||||||
Automobiles Manufacturing – 1.0% | ||||||||
Daimler Finance North America LLC, 1.45%, 8/1/16 (1)(2) | 1,935 | 1,949 | ||||||
Ford Motor Co., | 2,005 | 2,647 | ||||||
Ford Motor Credit Co. LLC, | 1,515 | 1,567 | ||||||
General Motors Co., | 1,910 | 2,235 | ||||||
General Motors Financial Co., Inc., | 3,235 | 3,267 | ||||||
4.38%, 9/25/21 | 1,780 | 1,820 | ||||||
Hyundai Capital America, 4.00%, 6/8/17 (1)(2) | 1,910 | 2,017 | ||||||
15,502 | ||||||||
Banks – 0.6% | ||||||||
Discover Bank, | 2,830 | 2,816 | ||||||
4.25%, 3/13/26 | 2,175 | 2,225 | ||||||
JPMorgan Chase Bank N.A., | 190 | 212 | ||||||
PNC Financial Services Group (The), Inc., | 3,225 | 3,056 | ||||||
8,309 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 27 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
FIXED INCOME FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 41.4% – continued | ||||||||
Biotechnology – 0.2% | ||||||||
Celgene Corp., | $2,130 | $2,313 | ||||||
Cable & Satellite – 1.2% | ||||||||
CCO Holdings LLC/CCO Holdings Capital Corp., | 3,140 | 3,077 | ||||||
Comcast Corp., | 3,405 | 3,446 | ||||||
6.40%, 5/15/38 | 2,220 | 2,832 | ||||||
DIRECTV Holdings LLC/DIRECTV Financing Co., Inc., | 1,500 | 1,534 | ||||||
5.20%, 3/15/20 | 3,085 | 3,455 | ||||||
5.15%, 3/15/42 | 3,590 | 3,630 | ||||||
17,974 | ||||||||
Chemicals – 1.1% | ||||||||
CF Industries, Inc., | 2,635 | 3,052 | ||||||
5.15%, 3/15/34 | 1,520 | 1,602 | ||||||
Eastman Chemical Co., | 3,670 | 3,496 | ||||||
Huntsman International LLC, | 3,960 | 3,900 | ||||||
Rentech Nitrogen Partners L.P./Rentech Nitrogen Finance Corp., | 1,630 | 1,618 | ||||||
WR Grace & Co-Conn, | 2,800 | 2,870 | ||||||
16,538 | ||||||||
Coal Operations – 0.1% | ||||||||
CONSOL Energy, Inc., | 2,175 | 2,142 | ||||||
Commercial Finance – 1.2% | ||||||||
Air Lease Corp., | 3,310 | 3,571 | ||||||
3.88%, 4/1/21 | 1,335 | 1,348 | ||||||
CIT Group, Inc., | 2,040 | 2,004 | ||||||
General Electric Capital Corp., | 5,290 | 5,981 | ||||||
6.25%, 12/15/22 | 3,000 | 3,232 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 41.4% – continued | ||||||||
Commercial Finance – 1.2% – continued |
| |||||||
International Lease Finance Corp., | $2,000 | $2,143 | ||||||
18,279 | ||||||||
Communications Equipment – 0.1% | ||||||||
Apple, Inc., | 645 | 659 | ||||||
CC Holdings GS V LLC/Crown Castle GS III Corp., | 1,575 | 1,593 | ||||||
2,252 | ||||||||
Consumer Finance – 0.6% | ||||||||
Ally Financial, Inc., | 2,855 | 2,798 | ||||||
3.25%, 9/29/17 | 1,285 | 1,269 | ||||||
Capital One Bank USA N.A., | 100 | 127 | ||||||
Countrywide Financial Corp., | 4,035 | 4,349 | ||||||
8,543 | ||||||||
Consumer Services – 1.5% | ||||||||
APX Group, Inc., | 2,750 | 2,661 | ||||||
ERAC USA Finance LLC, | 1,515 | 1,518 | ||||||
7.00%, 10/15/37 (1)(2) | 4,605 | 6,082 | ||||||
Service Corp. International, | 1,186 | 1,150 | ||||||
5.38%, 1/15/22 | 1,600 | 1,616 | ||||||
United Rentals North America, Inc., | 3,800 | 3,962 | ||||||
7.63%, 4/15/22 | 2,025 | 2,202 | ||||||
6.13%, 6/15/23 | 1,250 | 1,284 | ||||||
5.75%, 11/15/24 | 1,690 | 1,711 | ||||||
22,186 | ||||||||
Containers & Packaging – 1.5% | ||||||||
Ball Corp., | 1,035 | 1,073 | ||||||
Crown Americas LLC/Crown Americas Capital Corp. IV, | 4,750 | 4,489 | ||||||
Graphic Packaging International, Inc., | 4,015 | 4,005 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 28 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 41.4% – continued | ||||||||
Containers & Packaging – 1.5% – continued |
| |||||||
International Paper Co., | $3,030 | $2,940 | ||||||
4.80%, 6/15/44 | 2,150 | 2,082 | ||||||
Plastipak Holdings, Inc., | 2,950 | 2,994 | ||||||
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu, | 2,250 | 2,289 | ||||||
8.25%, 2/15/21 | 2,035 | 2,152 | ||||||
22,024 | ||||||||
Diversified Banks – 3.5% | ||||||||
Bank of America Corp., | 2,460 | 2,590 | ||||||
6.00%, 9/1/17 | 3,255 | 3,629 | ||||||
2.65%, 4/1/19 | 1,315 | 1,311 | ||||||
4.13%, 1/22/24 | 2,045 | 2,084 | ||||||
6.25%, 9/5/24 | 1,780 | 1,768 | ||||||
7.75%, 5/14/38 | 3,565 | 4,817 | ||||||
5.00%, 1/21/44 | 2,250 | 2,374 | ||||||
Citigroup, Inc., | 3,300 | 3,291 | ||||||
6.00%, 8/15/17 | 2,275 | 2,548 | ||||||
2.50%, 7/29/19 | 1,930 | 1,913 | ||||||
6.30%, 5/15/24 | 4,425 | 4,370 | ||||||
4.00%, 8/5/24 | 2,765 | 2,709 | ||||||
6.68%, 9/13/43 | 2,225 | 2,727 | ||||||
JPMorgan Chase & Co., | 2,830 | 3,063 | ||||||
6.30%, 4/23/19 | 2,625 | 3,045 | ||||||
5.00%, 7/1/19 | 3,185 | 3,105 | ||||||
5.15%, 5/1/23 | 1,440 | 1,372 | ||||||
3.88%, 9/10/24 | 2,795 | 2,740 | ||||||
Wells Fargo & Co., | 2,820 | 3,086 | ||||||
52,542 | ||||||||
Electrical Equipment Manufacturing – 0.2% |
| |||||||
Roper Industries, Inc., | 2,250 | 2,609 | ||||||
Entertainment Content – 0.6% | ||||||||
CBS Corp., | 1,560 | 1,580 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 41.4% – continued | ||||||||
Entertainment Content – 0.6% – continued |
| |||||||
Midcontinent Communications & Midcontinent Finance Corp., | $2,675 | $2,702 | ||||||
Time Warner, Inc., | 2,415 | 2,800 | ||||||
Viacom, Inc., | 2,895 | 2,665 | ||||||
9,747 | ||||||||
Exploration & Production – 3.0% | ||||||||
California Resources Corp., | 2,000 | 2,030 | ||||||
Continental Resources, Inc., | 3,875 | 4,088 | ||||||
Denbury Resources, Inc., | 1,840 | 1,914 | ||||||
5.50%, 5/1/22 | 1,950 | 1,930 | ||||||
Kerr-McGee Corp., | 3,085 | 3,882 | ||||||
Linn Energy LLC/Linn Energy Finance Corp., | 1,950 | 1,911 | ||||||
6.25%, 11/1/19 | 6,340 | 6,189 | ||||||
Newfield Exploration Co., | 1,550 | 1,591 | ||||||
6.88%, 2/1/20 | 3,260 | 3,399 | ||||||
5.75%, 1/30/22 | 3,360 | 3,604 | ||||||
QEP Resources, Inc., | 5,000 | 5,425 | ||||||
Range Resources Corp., | 3,615 | 3,796 | ||||||
Rosetta Resources, Inc., | 1,430 | 1,394 | ||||||
WPX Energy, Inc., | 1,500 | 1,546 | ||||||
5.25%, 9/15/24 | 2,680 | 2,600 | ||||||
45,299 | ||||||||
Financial Services – 4.3% | ||||||||
Ares Capital Corp., | 3,230 | 3,411 | ||||||
FMR LLC, | 6,590 | 8,366 | ||||||
Goldman Sachs Group (The), Inc., | 2,945 | 3,198 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 29 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
FIXED INCOME FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 41.4% – continued | ||||||||
Financial Services – 4.3% – continued | ||||||||
2.90%, 7/19/18 | $2,835 | $2,904 | ||||||
2.63%, 1/31/19 | 4,700 | 4,688 | ||||||
5.75%, 1/24/22 | 3,315 | 3,770 | ||||||
4.00%, 3/3/24 | 2,035 | 2,050 | ||||||
6.45%, 5/1/36 | 2,245 | 2,614 | ||||||
6.75%, 10/1/37 | 2,845 | 3,396 | ||||||
4.80%, 7/8/44 | 1,210 | 1,217 | ||||||
Icahn Enterprises L.P./Icahn Enterprises Finance Corp., | 1,505 | 1,490 | ||||||
4.88%, 3/15/19 | 1,505 | 1,482 | ||||||
6.00%, 8/1/20 | 1,560 | 1,603 | ||||||
5.88%, 2/1/22 | 3,000 | 3,000 | ||||||
KKR Group Finance Co. III LLC, | 1,545 | 1,605 | ||||||
KKR Group Finance Co. LLC, | 2,195 | 2,567 | ||||||
Legg Mason, Inc., | 745 | 811 | ||||||
Morgan Stanley, | 885 | 951 | ||||||
2.50%, 1/24/19 | 5,170 | 5,170 | ||||||
2.38%, 7/23/19 | 1,930 | 1,899 | ||||||
3.88%, 4/29/24 | 1,975 | 1,973 | ||||||
5.00%, 11/24/25 | 2,645 | 2,766 | ||||||
Prospect Capital Corp., | 1,820 | 1,895 | ||||||
5.88%, 3/15/23 | 1,720 | 1,792 | ||||||
64,618 | ||||||||
Food & Beverage – 0.7% | ||||||||
Constellation Brands, Inc., | 3,665 | 3,995 | ||||||
Mead Johnson Nutrition Co., | 1,470 | 1,483 | ||||||
SABMiller Holdings, Inc., | 950 | 954 | ||||||
Smithfield Foods, Inc., | 3,020 | 3,186 | ||||||
Tyson Foods, Inc., | 1,210 | 1,245 | ||||||
10,863 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 41.4% – continued | ||||||||
Hardware – 0.0% | ||||||||
Sanmina Corp., | $600 | $588 | ||||||
Health Care Facilities & Services – 0.9% | ||||||||
Cardinal Health, Inc., | 60 | 61 | ||||||
1.70%, 3/15/18 | 1,140 | 1,129 | ||||||
Express Scripts Holding | 2,005 | 2,077 | ||||||
Fresenius Medical Care US Finance II, Inc., | 4,875 | 5,167 | ||||||
HCA, Inc., | 2,570 | 2,808 | ||||||
McKesson Corp., | 700 | 721 | ||||||
Medco Health Solutions, Inc., | 1,980 | 2,017 | ||||||
13,980 | ||||||||
Homebuilders – 0.3% | ||||||||
Lennar Corp., | 2,750 | 2,723 | ||||||
4.50%, 6/15/19 | 1,345 | 1,333 | ||||||
4,056 | ||||||||
Industrial Other – 0.2% | ||||||||
MasTec, Inc., | 3,270 | 3,057 | ||||||
Life Insurance – 2.3% | ||||||||
ING US, Inc., | 2,000 | 2,010 | ||||||
Lincoln National Corp., | 4,705 | 4,811 | ||||||
MetLife, Inc., | 3,565 | 3,975 | ||||||
4.88%, 11/13/43 | 2,310 | 2,458 | ||||||
Metropolitan Life Global Funding I, | 775 | 774 | ||||||
Principal Financial Group, Inc., | 1,300 | 1,300 | ||||||
Protective Life Corp., | 85 | 104 | ||||||
8.45%, 10/15/39 | 7,990 | 11,972 | ||||||
Prudential Financial, Inc., | 1,775 | 1,761 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 30 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 41.4% – continued | ||||||||
Life Insurance – 2.3% – continued | ||||||||
5.63%, 6/15/43 | $3,915 | $4,080 | ||||||
4.60%, 5/15/44 | 1,930 | 1,912 | ||||||
35,157 | ||||||||
Managed Care – 0.4% | ||||||||
Cigna Corp., | 315 | 325 | ||||||
Humana, Inc., | 1,900 | 1,899 | ||||||
4.63%, 12/1/42 | 590 | 578 | ||||||
WellPoint, Inc., | 1,985 | 1,983 | ||||||
2.25%, 8/15/19 | 1,520 | 1,497 | ||||||
6,282 | ||||||||
Manufactured Goods – 0.1% | ||||||||
Gates Global LLC/Gates Global Co., | 1,000 | 940 | ||||||
Medical Equipment & Devices Manufacturing – 0.8% |
| |||||||
Agilent Technologies, Inc., | 2,640 | 3,044 | ||||||
Baxter International, Inc., | 2,860 | 3,208 | ||||||
Thermo Fisher Scientific, Inc., | 2,905 | 2,999 | ||||||
4.15%, 2/1/24 | 2,175 | 2,252 | ||||||
11,503 | ||||||||
Metals & Mining – 0.5% | ||||||||
Alcoa, Inc., | 885 | 886 | ||||||
Commercial Metals Co., | 2,745 | 3,047 | ||||||
Freeport-McMoRan Copper & Gold, Inc., | 2,400 | 2,447 | ||||||
Steel Dynamics, Inc., | 1,780 | 1,880 | ||||||
8,260 | ||||||||
Oil & Gas Services & Equipment – 0.8% |
| |||||||
Atwood Oceanics, Inc., | 1,665 | 1,707 | ||||||
Diamond Offshore Drilling, Inc., | 2,570 | 2,382 | ||||||
Pioneer Energy Services Corp., | 1,440 | 1,425 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 41.4% – continued | ||||||||
Oil & Gas Services & Equipment – 0.8% – continued |
| |||||||
Plains Exploration & Production Co., | $1,607 | $1,760 | ||||||
6.75%, 2/1/22 | 2,231 | 2,471 | ||||||
Rowan Cos., Inc., | 3,000 | 2,813 | ||||||
12,558 | ||||||||
Pharmaceuticals – 0.1% | ||||||||
Mylan, Inc., | 1,125 | 1,138 | ||||||
Pipeline – 1.6% | ||||||||
Access Midstream Partners L.P./ACMP Finance Corp., | 4,000 | 4,260 | ||||||
Energy Transfer Partners L.P., | 3,135 | 3,570 | ||||||
Exterran Partners L.P./EXLP Finance Corp., | 3,810 | 3,705 | ||||||
Kinder Morgan, Inc., | 2,870 | 2,992 | ||||||
Regency Energy Partners L.P./Regency Energy Finance Corp., | 5,150 | 5,408 | ||||||
5.88%, 3/1/22 | 500 | 520 | ||||||
Tesoro Logistics L.P./Tesoro Logistics Finance Corp., | 1,722 | 1,782 | ||||||
Williams (The) Cos., Inc., | 1,785 | 1,754 | ||||||
23,991 | ||||||||
Power Generation – 0.3% | ||||||||
Exelon Generation Co. LLC, | 1,990 | 2,238 | ||||||
4.00%, 10/1/20 | 2,110 | 2,222 | ||||||
4,460 | ||||||||
Property & Casualty Insurance – 0.7% |
| |||||||
American International Group, Inc., | 3,475 | 3,579 | ||||||
8.18%, 5/15/58 | 3,350 | 4,514 | ||||||
Liberty Mutual Group, Inc., | 2,390 | 2,611 | ||||||
10,704 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 31 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
FIXED INCOME FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 41.4% – continued | ||||||||
Publishing & Broadcasting – 1.2% | ||||||||
21st Century Fox America, Inc., | $2,365 | $2,790 | ||||||
6.90%, 8/15/39 | 4,089 | 5,254 | ||||||
Gannett Co., Inc., | 2,700 | 2,612 | ||||||
Starz LLC/Starz Finance Corp., | 3,110 | 3,141 | ||||||
Univision Communications, Inc., | 3,500 | 3,649 | ||||||
17,446 | ||||||||
Railroad – 0.3% | ||||||||
Burlington Northern Santa Fe LLC, | 2,360 | 2,358 | ||||||
CSX Corp., | 2,465 | 2,581 | ||||||
4,939 | ||||||||
Real Estate – 1.5% | ||||||||
ARC Properties Operating Partnership L.P./Clark Acquisition LLC, | 2,380 | 2,423 | ||||||
DuPont Fabros Technology L.P., | 2,325 | 2,366 | ||||||
EPR Properties, | 3,905 | 4,275 | ||||||
5.25%, 7/15/23 | 2,655 | 2,791 | ||||||
ERP Operating L.P., | 1,905 | 1,876 | ||||||
HCP, Inc., | 1,225 | 1,290 | ||||||
Host Hotels & Resorts L.P., | 475 | 503 | ||||||
Iron Mountain, Inc., | 3,015 | 3,090 | ||||||
Prologis L.P., | 500 | 499 | ||||||
Ventas Realty L.P., | 1,495 | 1,721 | ||||||
WEA Finance LLC/Westfield UK & Europe Finance PLC, | 1,790 | 1,812 | ||||||
22,646 | ||||||||
Refining & Marketing – 0.4% |
| |||||||
Marathon Petroleum Corp., | 1,425 | 1,395 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 41.4% – continued | ||||||||
Refining & Marketing – 0.4% – continued |
| |||||||
Tesoro Corp., | $750 | $769 | ||||||
Western Refining, Inc., | 3,250 | 3,250 | ||||||
5,414 | ||||||||
Retail – Consumer Discretionary – 0.6% |
| |||||||
Hertz (The) Corp., | 5,450 | 5,641 | ||||||
5.88%, 10/15/20 | 2,635 | 2,675 | ||||||
QVC, Inc., | 1,275 | 1,258 | ||||||
9,574 | ||||||||
Retail – Consumer Staples – 0.4% | ||||||||
Bunge Ltd. Finance Corp., | 3,071 | 3,204 | ||||||
8.50%, 6/15/19 | 1,975 | 2,453 | ||||||
5,657 | ||||||||
Semiconductors – 0.2% | ||||||||
Samsung Electronics America, Inc., | 3,265 | 3,275 | ||||||
Software & Services – 0.3% | ||||||||
CA, Inc., | 1,325 | 1,343 | ||||||
Oracle Corp., | 2,950 | 2,972 | ||||||
4,315 | ||||||||
Supermarkets & Pharmacies – 0.1% |
| |||||||
CVS Health Corp., | 1,330 | 1,317 | ||||||
Tobacco – 0.7% | ||||||||
Altria Group, Inc., | 3,875 | 4,129 | ||||||
Lorillard Tobacco Co., | 5,000 | 6,116 | ||||||
10,245 | ||||||||
Utilities – 2.0% | ||||||||
AES Corp., | 1,850 | 1,799 | ||||||
CenterPoint Energy, Inc., | 2,380 | 2,744 | ||||||
CMS Energy Corp., | 4,175 | 4,584 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 32 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 41.4% – continued | ||||||||
Utilities – 2.0% – continued | ||||||||
8.75%, 6/15/19 | $3,530 | $4,482 | ||||||
Exelon Corp., | 3,525 | 3,961 | ||||||
IPALCO Enterprises, Inc., | 3,675 | 3,872 | ||||||
ITC Holdings Corp., | 1,335 | 1,331 | ||||||
Jersey Central Power & Light Co., | 2,840 | 3,015 | ||||||
Progress Energy, Inc., | 2,730 | 3,837 | ||||||
29,625 | ||||||||
Waste & Environment Services & Equipment – 0.4% |
| |||||||
Clean Harbors, Inc., | 1,770 | 1,770 | ||||||
5.13%, 6/1/21 | 3,850 | 3,816 | ||||||
5,586 | ||||||||
Wireless Telecommunications Services – 1.5% |
| |||||||
Qualitytech L.P./QTS Finance Corp., | 1,745 | 1,710 | ||||||
SBA Tower Trust, | 1,865 | 1,891 | ||||||
Sprint Corp., | 3,810 | 3,839 | ||||||
Verizon Communications, Inc., | 2,125 | 2,239 | ||||||
3.50%, 11/1/21 | 5,155 | 5,215 | ||||||
6.40%, 9/15/33 | 5,805 | 7,072 | ||||||
6.55%, 9/15/43 | 495 | 619 | ||||||
22,585 | ||||||||
Wireline Telecommunications Services – 0.9% |
| |||||||
Frontier Communications Corp., | 3,695 | 4,102 | ||||||
6.88%, 1/15/25 | 1,850 | 1,827 | ||||||
tw telecom holdings, Inc., | 3,640 | 4,077 | ||||||
Windstream Corp., | 4,075 | 3,932 | ||||||
13,938 | ||||||||
Total Corporate Bonds | ||||||||
(Cost $600,642) | 621,746 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 7.5% | ||||||||
Aerospace & Defense – 0.3% | ||||||||
Bombardier, Inc., | $1,540 | $1,536 | ||||||
6.00%, 10/15/22 (1)(2) | 2,800 | 2,786 | ||||||
4,322 | ||||||||
Banks – 0.8% | ||||||||
Credit Suisse, | 3,135 | 3,497 | ||||||
Lloyds Bank PLC, | 2,580 | 2,586 | ||||||
6.50%, 9/14/20 (1)(2) | 4,240 | 4,930 | ||||||
Mizuho Bank Ltd., | 1,640 | 1,636 | ||||||
12,649 | ||||||||
Chemicals – 0.8% | ||||||||
Agrium, Inc., | 2,225 | 2,258 | ||||||
Braskem Finance Ltd., | 2,255 | 2,345 | ||||||
Ineos Finance PLC, | 2,170 | 2,311 | ||||||
INEOS Group Holdings S.A., | 1,075 | 1,072 | ||||||
5.88%, 2/15/19 (2) | 1,625 | 1,601 | ||||||
LYB International Finance B.V., | 2,240 | 2,286 | ||||||
11,873 | ||||||||
Commercial Finance – 0.1% | ||||||||
AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, | 1,440 | 1,397 | ||||||
Diversified Banks – 0.5% | ||||||||
HSBC Holdings PLC, | 3,700 | 3,928 | ||||||
Royal Bank of Scotland Group PLC, | 500 | 500 | ||||||
6.00%, 12/19/23 | 3,400 | 3,565 | ||||||
7,993 | ||||||||
Exploration & Production – 0.3% | ||||||||
Petro-Canada, | 960 | 1,095 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 33 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
FIXED INCOME FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 7.5% – continued | ||||||||
Exploration & Production – 0.3% – continued |
| |||||||
Petroleos Mexicanos, | $2,910 | $3,202 | ||||||
4,297 | ||||||||
Food & Beverage – 0.9% | ||||||||
ESAL GmbH, | 1,800 | 1,746 | ||||||
Heineken N.V., | 1,590 | 1,580 | ||||||
JBS Investments GmbH, | 1,650 | 1,683 | ||||||
Pernod Ricard S.A., | 2,890 | 3,054 | ||||||
SABMiller PLC, | 2,125 | 2,320 | ||||||
Suntory Holdings Ltd., | 3,080 | 3,076 | ||||||
13,459 | ||||||||
Hardware – 0.2% | ||||||||
Seagate HDD Cayman, | 2,760 | 2,746 | ||||||
Health Care Facilities & Services – 0.1% |
| |||||||
Catamaran Corp., | 1,705 | 1,640 | ||||||
Integrated Oils – 0.5% | ||||||||
Petrobras International Finance Co., | 1,555 | 1,582 | ||||||
5.38%, 1/27/21 | 5,535 | 5,595 | ||||||
7,177 | ||||||||
Internet Media – 0.2% | ||||||||
Atwood Oceanics, Inc., | 2,145 | 2,208 | ||||||
Machinery Manufacturing – 0.3% | ||||||||
Pentair Finance S.A., | 1,510 | 1,515 | ||||||
Tyco Electronics Group S.A., | 2,560 | 2,915 | ||||||
4,430 | ||||||||
Manufactured Goods – 0.1% | ||||||||
Schaeffler Holding Finance B.V., | 1,700 | 1,768 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 7.5% – continued | ||||||||
Metals & Mining – 0.2% | ||||||||
FMG Resources August 2006 Pty. Ltd., | $3,000 | $3,053 | ||||||
Oil & Gas Services & Equipment – 0.1% | ||||||||
Ensco PLC, | 1,415 | 1,420 | ||||||
Pharmaceuticals – 0.1% | ||||||||
Actavis Funding SCS, | 1,325 | 1,284 | ||||||
Property & Casualty Insurance – 1.1% |
| |||||||
Allied World Assurance Co. Holdings Ltd., | 6,700 | 7,427 | ||||||
5.50%, 11/15/20 | 2,070 | 2,312 | ||||||
XL Group PLC, | 7,600 | 7,353 | ||||||
17,092 | ||||||||
Utilities – 0.2% | ||||||||
PPL WEM Holdings Ltd., | 3,475 | 3,617 | ||||||
Wireless Telecommunications Services – 0.4% |
| |||||||
Intelsat Jackson Holdings S.A., | 5,450 | 5,763 | ||||||
Wireline Telecommunications Services – 0.3% |
| |||||||
Virgin Media Finance PLC, | 1,000 | 1,001 | ||||||
Virgin Media Secured Finance PLC, | 3,375 | 3,401 | ||||||
4,402 | ||||||||
Total Foreign Issuer Bonds | ||||||||
(Cost $109,490) | 112,590 | |||||||
U.S. GOVERNMENT AGENCIES – 19.4% (5) | ||||||||
Fannie Mae – 17.2% | ||||||||
Pool #255498, | 423 | 474 | ||||||
Pool #256883, | 46 | 52 | ||||||
Pool #535714, | 46 | 53 | ||||||
Pool #545003, | 2 | 3 | ||||||
Pool #545437, | 97 | 113 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 34 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 19.4% (5) – continued | ||||||||
Fannie Mae – 17.2% – continued | ||||||||
Pool #545556, | $60 | $70 | ||||||
Pool #555189, | 433 | 516 | ||||||
Pool #581806, | 168 | 196 | ||||||
Pool #585617, | – | – | ||||||
Pool #745148, | 278 | 307 | ||||||
Pool #888538, | 676 | 756 | ||||||
Pool #890009, | 2,713 | 3,042 | ||||||
Pool #890384, | 601 | 655 | ||||||
Pool #893082, | 2,397 | 2,585 | ||||||
Pool #919638, | 1,416 | 1,575 | ||||||
Pool #929035, | 839 | 950 | ||||||
Pool #932638, | 8,102 | 9,014 | ||||||
Pool #955782, | 196 | 221 | ||||||
Pool #990702, | 1,944 | 2,200 | ||||||
Pool #AA7583, | 3,440 | 3,747 | ||||||
Pool #AB1470, | 3,611 | 3,906 | ||||||
Pool #AB2693, | 8,077 | 8,744 | ||||||
Pool #AB3114, | 4,829 | 5,370 | ||||||
Pool #AB9522, | 28,203 | 28,866 | ||||||
Pool #AC6767, | 2,622 | 2,855 | ||||||
Pool #AC9581, | 6,099 | 6,838 | ||||||
Pool #AD0915, | 259 | 290 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 19.4% (5) – continued | ||||||||
Fannie Mae – 17.2% – continued | ||||||||
Pool #AD1645, | $8,311 | $9,227 | ||||||
Pool #AD6929, | 4,094 | 4,545 | ||||||
Pool #AH1166, | 8,956 | 9,695 | ||||||
Pool #AH1507, | 8,817 | 9,603 | ||||||
Pool #AH9109, | 583 | 635 | ||||||
Pool #AI4294, | 3,071 | 3,321 | ||||||
Pool #AW2706, | 51,860 | 54,778 | ||||||
Pool TBA, | 46,400 | 45,740 | ||||||
3.50%, 10/14/44 (3) | 24,600 | 25,144 | ||||||
4.50%, 10/14/44 (3) | 6,800 | 7,336 | ||||||
5.00%, 10/14/44 (3) | 4,675 | 5,158 | ||||||
258,580 | ||||||||
Freddie Mac – 0.5% | ||||||||
Pool #1B3575, | 588 | 605 | ||||||
Pool #1G2296, | 1,809 | 1,933 | ||||||
Pool #1J0365, | 1,710 | 1,840 | ||||||
Pool #1J2840, | 1,552 | 1,667 | ||||||
Pool #848076, | 968 | 1,037 | ||||||
7,082 | ||||||||
Freddie Mac Gold – 1.1% | ||||||||
Pool #A65182, | 3,624 | 4,227 | ||||||
Pool #A92650, | 346 | 385 | ||||||
Pool #C00910, | 342 | 386 | ||||||
Pool #C02790, | 2,173 | 2,457 | ||||||
Pool #C02838, | 2,863 | 3,194 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 35 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
FIXED INCOME FUND continued
PRINCIPAL (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 19.4% (5) – continued | ||||||||
Freddie Mac Gold – 1.1% – continued |
| |||||||
Pool #C03517, | $3,898 | $4,209 | ||||||
Pool #G01954, | 1,877 | 2,076 | ||||||
16,934 | ||||||||
Government National Mortgage Association – 0.3% |
| |||||||
Series 2012-2, Class A, | 5,329 | 5,370 | ||||||
Government National Mortgage Association II – 0.3% |
| |||||||
Pool #82581, | 3,895 | 4,093 | ||||||
Total U.S. Government Agencies | ||||||||
(Cost $285,301) | 292,059 | |||||||
U.S. GOVERNMENT OBLIGATIONS – 19.1% | ||||||||
U.S. Treasury Bonds – 3.2% | ||||||||
5.38%, 2/15/31 | 10,330 | 13,673 | ||||||
4.50%, 2/15/36 | 9,250 | 11,416 | ||||||
3.38%, 5/15/44 | 22,172 | 22,893 | ||||||
47,982 | ||||||||
U.S. Treasury Notes – 15.7% | ||||||||
1.25%, 10/31/15 | 8,980 | 9,085 | ||||||
0.50%, 9/30/16 | 59,515 | 59,417 | ||||||
1.00%, 9/15/17 | 65,010 | 64,909 | ||||||
1.75%, 9/30/19 | 45,215 | 45,155 | ||||||
2.13%, 9/30/21 | 32,115 | 31,914 | ||||||
2.38%, 8/15/24 | 26,110 | 25,808 | ||||||
236,288 | ||||||||
U.S. Treasury Strips – 0.2% | ||||||||
2.27%, 2/15/38 (6) | 4,190 | 1,976 | ||||||
Total U.S. Government Obligations | ||||||||
(Cost $284,620) | 286,246 | |||||||
NUMBER OF SHARES | VALUE (000s) | |||||||
INVESTMENT COMPANIES – 7.9% | ||||||||
Northern Institutional Funds - | 118,834,284 | $118,834 | ||||||
Total Investment Companies | ||||||||
(Cost $118,834) | 118,834 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
SHORT-TERM INVESTMENTS – 2.3% | ||||||||
U.S. Treasury Bill, | $20,720 | $20,710 | ||||||
0.12%, 4/2/15 (9) | 13,600 | 13,592 | ||||||
Total Short-Term Investments | ||||||||
(Cost $34,302) | 34,302 | |||||||
Total Investments – 107.2% | ||||||||
(Cost $1,580,031) | 1,610,689 | |||||||
Liabilities less Other Assets – (7.2)% | (107,970 | ) | ||||||
NET ASSETS – 100.0% | $1,502,719 |
(1) | Restricted security that has been deemed illiquid. At September 30, 2014, the value of these restricted illiquid securities amounted to approximately $106,810,000 or 7.1% of net assets. Additional information on each restricted illiquid security is as follows: |
SECURITY | ACQUISITION AND ENFORCEABLE DATE | ACQUISITION COST (000s) | ||||
Actavis Funding SCS, 3.85%, 6/15/24 | 6/10/14 | $1,320 | ||||
AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, 3.75%, 5/15/19 | 5/8/14 | 1,440 | ||||
ARC Properties Operating Partnership L.P./Clark Acquisition LLC, 4.60%, 2/6/24 | 2/4/14 | 2,376 | ||||
Bombardier, Inc., 4.75%, 4/15/19 | 3/31/14 | 1,540 | ||||
Bombardier, Inc., 6.00%, 10/15/22 | 3/31/14 | 2,800 | ||||
California Resources Corp., 5.50%, 9/15/21 | 9/11/14 | 2,000 | ||||
CONSOL Energy, Inc., 5.88%, 4/15/22 | 7/29/14 | 2,235 | ||||
Daimler Finance North America LLC, 1.45%, 8/1/16 | 7/24/13 | 1,933 | ||||
ERAC USA Finance LLC, 3.85%, 11/15/24 | 5/19/14 | 1,512 | ||||
ERAC USA Finance LLC, 7.00%, 10/15/37 | 10/10/07-9/29/11 | 4,726 | ||||
FMG Resources August 2006 Pty. Ltd., 6.88%, 4/1/22 | 1/15/14-1/16/14 | 3,296 | ||||
FMR LLC, 6.45%, 11/15/39 | 1/6/10-11/16/11 | 6,337 | ||||
Gannett Co., Inc., 4.88%, 9/15/21 | 9/3/14 | 2,660 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 36 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
SECURITY | ACQUISITION AND ENFORCEABLE DATE | ACQUISITION COST (000s) | ||||
Heineken N.V., 1.40%, 10/1/17 | 10/2/12 | $1,585 | ||||
Hyundai Capital America, 4.00%, 6/8/17 | 12/1/11 | 1,902 | ||||
INEOS Group Holdings S.A., 6.13%, 8/15/18 | 5/2/13 | 1,075 | ||||
JBS Investments GmbH, 7.25%, 4/3/24 | 3/31/14 | 1,650 | ||||
Jersey Central Power & Light Co., 4.70%, 4/1/24 | 8/14/13-8/26/14 | 2,857 | ||||
Kinder Morgan, Inc., 5.00%, 2/15/21 | 9/15/14 | 3,021 | ||||
KKR Group Finance Co. III LLC, 5.13%, 6/1/44 | 5/21/14 | 1,524 | ||||
KKR Group Finance Co. LLC, 6.38%, 9/29/20 | 4/15/13 | 2,634 | ||||
Liberty Mutual Group, Inc., 5.00%, 6/1/21 | 4/12/13 | 2,645 | ||||
Lloyds Bank PLC, 6.50%, 9/14/20 | 9/7/10 | 4,215 | ||||
Metropolitan Life Global Funding I, 1.30%, 4/10/17 | 4/7/14 | 774 | ||||
Mizuho Bank Ltd., 2.45%, 4/16/19 | 4/9/14 | 1,637 | ||||
Pernod Ricard S.A., 4.45%, 1/15/22 | 10/20/11-11/17/11 | 2,887 | ||||
Pioneer Energy Services Corp., 6.13%, 3/15/22 | 3/4/14 | 1,440 | ||||
PPL WEM Holdings Ltd., 3.90%, 5/1/16 | 4/18/11 | 3,471 | ||||
Qualitytech L.P./QTS Finance Corp., 5.88%, 8/1/22 | 7/17/14 | 1,731 | ||||
QVC, Inc., 4.45%, 2/15/25 | 8/7/14 | 1,273 | ||||
Rentech Nitrogen Partners L.P./Rentech Nitrogen Finance Corp., 6.50%, 4/15/21 | 4/9/13 | 1,630 | ||||
SABMiller PLC, 6.50%, 7/1/16 | 10/28/10-9/29/11 | 2,518 | ||||
Samsung Electronics America, Inc., 1.75%, 4/10/17 | 4/2/12 | 3,253 | ||||
Sanmina Corp., 4.38%, 6/1/19 | 5/20/14 | 600 | ||||
SBA Tower Trust, 2.93%, 12/15/17 | 6/12/14 | 1,919 | ||||
Seagate HDD Cayman, 4.75%, 1/1/25 | 6/11/14 | 2,744 |
SECURITY | ACQUISITION AND ENFORCEABLE DATE | ACQUISITION COST (000s) | ||||
Sprint Corp., 7.13%, 6/15/24 | 12/9/13 | $3,810 | ||||
Suntory Holdings Ltd., 2.55%, 9/29/19 | 9/24/14 | 3,074 | ||||
Univision Communications, Inc., 6.88%, 5/15/19 | 3/14/13-12/13/13 | 3,783 | ||||
Virgin Media Finance PLC, 6.00%, 10/15/24 | 9/23/14 | 1,000 | ||||
Virgin Media Secured Finance PLC, 5.38%, 4/15/21 | 2/7/13 | 3,375 | ||||
WEA Finance LLC/Westfield UK & Europe Finance PLC, 4.75%, 9/17/44 | 9/10/14 | 1,784 | ||||
WR Grace & Co-Conn, 5.63%, 10/1/24 | 9/11/14 | 2,800 |
(2) | 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. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Trustees of Northern Funds. |
(3) | When-Issued Security. |
(4) | Security is payment in-kind bond. |
(5) | The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury. On September 7, 2008, the Federal Housing Finance Agency (“FHFA”) placed Fannie Mae and Freddie Mac in conservatorship. The United States Treasury has put in place a set of financing agreements to ensure that these entities continue to meet their obligations to holders of bonds that they have issued or guaranteed. |
(6) | Zero coupon bond reflects effective yield on the date of purchase. |
(7) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
(8) | At March 31, 2014, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $6,854,000 with net purchases of approximately $111,980,000 during the six months ended September 30, 2014. |
(9) | Security pledged related to the Fund’s investment in futures contracts during the period. As of September 30, 2014, the Fund did not hold any open futures contracts. |
Percentages shown are based on Net Assets.
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 37 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
FIXED INCOME FUND continued | SEPTEMBER 30, 2014 (UNAUDITED) |
At September 30, 2014, the credit quality distribution for the Fund as a percentage of investments including cash was:
QUALITY DISTRIBUTION * | % OF INVESTMENTS | |||
U.S. Treasury | 20.5% | |||
U.S. Agency | 17.6 | |||
AAA | 7.0 | |||
AA | 2.4 | |||
A | 6.5 | |||
BBB | 22.2 | |||
BB | 10.9 | |||
B | 5.3 | |||
CCC | 0.2 | |||
Cash Equivalents | 7.4 | |||
Total | 100.0% |
* Credit quality ratings are based on the conservative average of Moody’s, Standard & Poor’s, and Fitch ratings. If ratings from all three rating agencies disagree, the model assigns the middle rating to the security. If two of the three agree, the model assigns the rating from those two to the security. If none of these three rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuations of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Asset-Backed Securities | $– | $144,912 | (1) | $– | $144,912 | |||||||||||
Corporate Bonds | – | 621,746 | (1) | – | 621,746 | |||||||||||
Foreign Issuer Bonds | – | 112,590 | (1) | – | 112,590 | |||||||||||
U.S. Government Agencies | – | 292,059 | (1) | – | 292,059 | |||||||||||
U.S. Government Obligations | – | 286,246 | (1) | – | 286,246 | |||||||||||
Investment Companies | 118,834 | – | – | 118,834 | ||||||||||||
Short-Term Investments | – | 34,302 | – | 34,302 | ||||||||||||
Total Investments | $118,834 | $1,491,855 | $– | $1,610,689 |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 38 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
HIGH YIELD FIXED INCOME FUND | SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 72.1% | ||||||||
Advertising & Marketing – 1.1% | ||||||||
Alliance Data Systems Corp., | $16,670 | $17,170 | ||||||
5.38%, 8/1/22 (1) | 13,400 | 12,998 | ||||||
Lamar Media Corp., | 28,427 | 28,498 | ||||||
58,666 | ||||||||
Aerospace & Defense – 1.0% | ||||||||
AAR Corp., | 21,216 | 22,807 | ||||||
Kratos Defense & Security Solutions, Inc., | 30,825 | 30,594 | ||||||
53,401 | ||||||||
Auto Parts Manufacturing – 2.5% | ||||||||
Affinia Group, Inc., | 24,933 | 25,619 | ||||||
American Axle & Manufacturing, Inc., 6.63%, 10/15/22 | 21,199 | 22,312 | ||||||
Chassix Holdings, Inc., | 14,375 | 12,794 | ||||||
Chassix, Inc., | 13,509 | 13,340 | ||||||
Meritor, Inc., | 32,000 | 32,320 | ||||||
Titan International, Inc., | 21,080 | 20,658 | ||||||
127,043 | ||||||||
Cable & Satellite – 2.9% | ||||||||
CCO Holdings LLC/CCO Holdings Capital Corp., | 14,360 | 15,078 | ||||||
Cequel Communications Holdings I LLC/Cequel Capital Corp., | 25,225 | 25,950 | ||||||
Harron Communications L.P./Harron Finance Corp., | 26,610 | 29,005 | ||||||
Mediacom Broadband LLC/Mediacom Broadband Corp., | 22,143 | 22,586 | ||||||
Mediacom LLC/Mediacom Capital Corp., | 14,294 | 15,009 | ||||||
Midcontinent Communications & Midcontinent Finance Corp., | 29,700 | 29,997 |
PRINCIPAL (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 72.1% – continued | ||||||||
Cable & Satellite – 2.9% – continued | ||||||||
Wave Holdco LLC/Wave Holdco Corp., | $10,165 | $10,419 | ||||||
148,044 | ||||||||
Casinos & Gaming – 1.8% | ||||||||
Caesars Entertainment Resort Properties LLC/Caesars Entertainment Resort Prope, | 18,150 | 17,878 | ||||||
Caesars Growth Properties Holdings LLC/Caesars Growth Properties Finance, Inc., | 23,400 | 20,475 | ||||||
Mohegan Tribal Gaming Authority, | 24,300 | 24,573 | ||||||
Station Casinos LLC, | 26,335 | 27,454 | ||||||
90,380 | ||||||||
Commercial Finance – 0.3% | ||||||||
Oxford Finance LLC/Oxford Finance Co.-Issuer, Inc., | 15,859 | 16,493 | ||||||
Communications Equipment – 0.6% | ||||||||
CPI International, Inc., | 31,100 | 32,189 | ||||||
Consumer Finance – 1.6% | ||||||||
Navient LLC, | 33,440 | 28,173 | ||||||
Speedy Cash Intermediate Holdings Corp., | 14,005 | 14,145 | ||||||
Speedy Group Holdings Corp., | 13,346 | 13,346 | ||||||
Walter Investment Management Corp., | 26,175 | 25,783 | ||||||
81,447 | ||||||||
Consumer Products – 1.3% | ||||||||
Clearwater Paper Corp., | 27,750 | 27,403 | ||||||
First Quality Finance Co., Inc., | 11,065 | 10,318 | ||||||
Revlon Consumer Products Corp., | 32,340 | 31,693 | ||||||
69,414 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 39 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
HIGH YIELD FIXED INCOME FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 72.1% – continued | ||||||||
Consumer Services – 1.6% | ||||||||
APX Group, Inc., | $30,089 | $27,381 | ||||||
Monitronics International, Inc., | 25,578 | 26,345 | ||||||
Service Corp. International, | 28,536 | 28,822 | ||||||
82,548 | ||||||||
Containers & Packaging – 1.4% | ||||||||
PaperWorks Industries, Inc., | 15,900 | 16,178 | ||||||
Plastipak Holdings, Inc., | 31,374 | 31,845 | ||||||
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu, | 21,791 | 23,044 | ||||||
71,067 | ||||||||
Electrical Equipment Manufacturing – 0.8% |
| |||||||
Artesyn Escrow, Inc., | 21,300 | 21,140 | ||||||
GrafTech International Ltd., | 22,825 | 22,654 | ||||||
43,794 | ||||||||
Entertainment Resources – 0.8% | ||||||||
AMC Entertainment, Inc., | 12,375 | 12,468 | ||||||
Regal Entertainment Group, | 28,886 | 28,958 | ||||||
41,426 | ||||||||
Exploration & Production – 4.8% | ||||||||
American Energy-Permian Basin LLC /AEPB Finance Corp., | 8,925 | 8,177 | ||||||
7.38%, 11/1/21 (1) | 15,725 | 14,388 | ||||||
BreitBurn Energy Partners L.P./BreitBurn Finance Corp., | 29,840 | 31,034 | ||||||
California Resources Corp., | 8,850 | 8,983 | ||||||
6.00%, 11/15/24 (1)(3) | 12,775 | 13,126 | ||||||
Clayton Williams Energy, Inc., | 27,149 | 27,896 | ||||||
Halcon Resources Corp., | 25,025 | 24,650 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 72.1% – continued | ||||||||
Exploration & Production – 4.8% – continued |
| |||||||
Hilcorp Energy I L.P./Hilcorp Finance Co., | $29,786 | $28,669 | ||||||
Linn Energy LLC/Linn Energy Finance Corp., | 25,500 | 24,990 | ||||||
RSP Permian, Inc., | 5,325 | 5,358 | ||||||
Swift Energy Co., | 28,820 | 28,820 | ||||||
WPX Energy, Inc., | 28,034 | 28,903 | ||||||
244,994 | ||||||||
Food & Beverage – 2.2% | ||||||||
Chiquita Brands International, Inc./Chiquita Brands LLC, | 29,974 | 32,372 | ||||||
Cott Beverages, Inc., | 26,402 | 25,544 | ||||||
Land O’ Lakes, Inc., | 28,700 | 30,672 | ||||||
Simmons Foods, Inc., | 25,902 | 25,643 | ||||||
114,231 | ||||||||
Forest & Paper Products Manufacturing – 1.6% |
| |||||||
Neenah Paper, Inc., | 31,406 | 31,681 | ||||||
P.H. Glatfelter Co., | 29,329 | 30,136 | ||||||
Verso Paper Holdings LLC/Verso Paper, Inc., | 20,625 | 20,728 | ||||||
82,545 | ||||||||
Hardware – 0.5% | ||||||||
Sanmina Corp., | 26,692 | 26,158 | ||||||
Health Care Facilities & Services – 0.9% | ||||||||
Envision Healthcare Corp., | 25,086 | 24,710 | ||||||
HealthSouth Corp., | 23,266 | 23,731 | ||||||
48,441 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 40 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 72.1% – continued | ||||||||
Home & Office Products Manufacturing – 0.6% |
| |||||||
American Greetings Corp., | $17,985 | $18,750 | ||||||
Century Intermediate Holding Co. 2, | 11,375 | 11,972 | ||||||
30,722 | ||||||||
Homebuilders – 2.3% | ||||||||
AV Homes, Inc., | 18,050 | 17,870 | ||||||
Beazer Homes USA, Inc., | 15,225 | 15,491 | ||||||
Meritage Homes Corp., | 33,335 | 36,335 | ||||||
Taylor Morrison Communities, Inc./Monarch Communities, Inc., | 26,190 | 25,535 | ||||||
Weyerhaeuser Real Estate Co., | 7,025 | 6,867 | ||||||
5.88%, 6/15/24 (1) | 15,850 | 15,771 | ||||||
117,869 | ||||||||
Industrial Other – 1.4% | ||||||||
AECOM Technology Corp., | 22,254 | 22,337 | ||||||
MasTec, Inc., | 30,375 | 28,401 | ||||||
Park-Ohio Industries, Inc., | 21,170 | 22,652 | ||||||
73,390 | ||||||||
Investment Companies – 1.6% | ||||||||
Fifth Street Finance Corp., | 15,975 | 16,516 | ||||||
Icahn Enterprises L.P./Icahn Enterprises Finance Corp., | 8,850 | 9,093 | ||||||
5.88%, 2/1/22 | 13,700 | 13,700 | ||||||
Nationstar Mortgage LLC/Nationstar Capital Corp., | 17,028 | 18,603 | ||||||
Prospect Capital Corp., | 23,160 | 24,125 | ||||||
82,037 | ||||||||
Life Insurance – 1.2% | ||||||||
American Equity Investment Life Holding Co., | 29,425 | 30,897 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 72.1% – continued | ||||||||
Life Insurance – 1.2% – continued | ||||||||
Fidelity & Guaranty Life Holdings, Inc., | $30,447 | $31,893 | ||||||
62,790 | ||||||||
Machinery Manufacturing & Rental – 1.0% | ||||||||
BlueLine Rental Finance Corp., | 8,125 | 8,348 | ||||||
United Rentals North America, Inc., | 26,135 | 26,462 | ||||||
Vander Intermediate Holding II Corp., | 17,800 | 18,601 | ||||||
53,411 | ||||||||
Media Non-Cable – 1.6% | ||||||||
Harland Clarke Holdings Corp., | 25,840 | 26,357 | ||||||
National CineMedia LLC, | 28,155 | 30,408 | ||||||
Sterling Entertainment Enterprises LLC, | 23,800 | 24,692 | ||||||
81,457 | ||||||||
Metals & Mining – 1.0% | ||||||||
Ryerson, Inc./Joseph T Ryerson & Son, Inc., | 24,942 | 26,314 | ||||||
SunCoke Energy Partners L.P./SunCoke Energy Partners Finance Corp., | 15,660 | 16,443 | ||||||
7.38%, 2/1/20 (1) | 9,083 | 9,537 | ||||||
52,294 | ||||||||
Oil & Gas Services & Equipment – 1.2% | ||||||||
Dresser-Rand Group, Inc., | 25,555 | 27,535 | ||||||
Parker Drilling Co., | 31,350 | 32,761 | ||||||
60,296 | ||||||||
Pharmaceuticals – 0.7% | ||||||||
Endo Finance LLC, | 7,975 | 7,875 | ||||||
JPR Royalty Sub LLC, | 8,000 | 5,311 | ||||||
Par Pharmaceutical Cos., Inc., | 22,415 | 23,368 | ||||||
36,554 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 41 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
HIGH YIELD FIXED INCOME FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 72.1% – continued | ||||||||
Pipeline – 3.6% | ||||||||
Atlas Pipeline Partners L.P./Atlas Pipeline Finance Corp., | $29,950 | $30,624 | ||||||
Crestwood Midstream Partners L.P./Crestwood Midstream Finance Corp., | 28,392 | 28,534 | ||||||
Energy Transfer Equity L.P., | 24,415 | 27,162 | ||||||
Exterran Partners L.P./EXLP Finance Corp., | 18,625 | 18,113 | ||||||
Martin Midstream Partners L.P./Martin Midstream Finance Corp., | 34,610 | 34,523 | ||||||
Rose Rock Midstream L.P./Rose Rock Finance Corp., | 17,735 | 17,558 | ||||||
Sabine Pass Liquefaction LLC, | 27,796 | 29,255 | ||||||
185,769 | ||||||||
Property & Casualty Insurance – 1.1% | ||||||||
A-S Co. - Issuer Subsidiary, Inc./A-S Merger Sub LLC, | 28,900 | 29,911 | ||||||
Hockey Merger Sub 2, Inc., | 14,135 | 14,471 | ||||||
Hub Holdings LLC/Hub Holdings Finance, Inc., | 13,475 | 13,172 | ||||||
57,554 | ||||||||
Publishing & Broadcasting – 3.0% | ||||||||
Gray Television, Inc., | 25,010 | 25,573 | ||||||
Lee Enterprises, Inc., | 30,620 | 31,003 | ||||||
McClatchy (The) Co., | 31,775 | 34,317 | ||||||
Sinclair Television Group, Inc., | 29,075 | 29,729 | ||||||
Townsquare Radio LLC/Townsquare Radio, Inc., | 30,285 | 32,632 | ||||||
153,254 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 72.1% – continued | ||||||||
Railroad – 0.5% | ||||||||
Florida East Coast Holdings Corp., | $6,800 | $6,936 | ||||||
9.75%, 5/1/20 (1) | 19,485 | 19,777 | ||||||
26,713 | ||||||||
Real Estate – 4.3% | ||||||||
Aviv Healthcare Properties L.P./Aviv Healthcare Capital Corp., | 12,125 | 12,519 | ||||||
DuPont Fabros Technology L.P., | 26,645 | 27,111 | ||||||
EPR Properties, | 15,070 | 18,159 | ||||||
Felcor Lodging L.P., | 27,800 | 27,175 | ||||||
Forestar USA Real Estate Group, Inc., | 26,565 | 27,229 | ||||||
Howard Hughes (The) Corp., | 33,625 | 34,718 | ||||||
Iron Mountain, Inc., | 28,205 | 28,910 | ||||||
MPT Operating Partnership L.P./MPT Finance Corp., | 16,125 | 16,488 | ||||||
Qualitytech L.P./QTS Finance Corp., | 28,150 | 27,587 | ||||||
219,896 | ||||||||
Refining & Marketing – 1.1% | ||||||||
CITGO Petroleum Corp., | 32,210 | 33,498 | ||||||
PBF Holding Co. LLC/PBF Finance Corp., | 23,156 | 24,256 | ||||||
57,754 | ||||||||
Restaurants – 1.2% | ||||||||
Landry’s Holdings II, Inc., | 14,177 | 14,602 | ||||||
Landry’s, Inc., | 13,585 | 14,366 | ||||||
NPC International, Inc./NPC Operating Co. A, Inc./NPC Operating Co. B, Inc., | 30,410 | 31,703 | ||||||
60,671 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 42 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 72.1% – continued | ||||||||
Retail – 0.9% | ||||||||
99 Cents Only Stores, | $25,177 | $27,317 | ||||||
Neiman Marcus Group Ltd. LLC, | 19,975 | 20,774 | ||||||
48,091 | ||||||||
Retail – Consumer Discretionary – 2.6% | ||||||||
Group 1 Automotive, Inc., | 28,410 | 27,487 | ||||||
Jo-Ann Stores Holdings, Inc., | 33,735 | 31,374 | ||||||
PC Nextco Holdings LLC/PC Nextco Finance, Inc., | 18,252 | 18,343 | ||||||
Penske Automotive Group, Inc., | 27,935 | 28,354 | ||||||
Sonic Automotive, Inc., | 25,108 | 26,740 | ||||||
132,298 | ||||||||
Retail – Discretionary – 1.2% | ||||||||
CST Brands, Inc., | 29,528 | 28,790 | ||||||
Pantry (The), Inc., | 29,320 | 30,639 | ||||||
59,429 | ||||||||
Retail Staples – 0.7% | ||||||||
Murphy Oil USA, Inc., | 32,850 | 34,246 | ||||||
Semiconductors – 0.4% | ||||||||
Freescale Semiconductor, Inc., | 21,810 | 22,137 | ||||||
Software & Services – 1.1% | ||||||||
Sophia Holding Finance L.P./Sophia Holding Finance, Inc., | 29,016 | 29,306 | ||||||
SunGard Data Systems, Inc., | 25,910 | 25,910 | ||||||
55,216 | ||||||||
Supermarkets & Pharmacies – 1.8% | ||||||||
BI-LO LLC/BI-LO Finance Corp., | 28,445 | 25,956 | ||||||
Ingles Markets, Inc., | 32,237 | 32,398 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 72.1% – continued | ||||||||
Supermarkets & Pharmacies – 1.8% – continued |
| |||||||
Tops Holding II Corp., | $32,310 | $32,310 | ||||||
90,664 | ||||||||
Tobacco – 0.3% | ||||||||
Alliance One International, Inc., | 16,750 | 16,331 | ||||||
Trucking & Leasing – 0.5% | ||||||||
Intrepid Aviation Group Holdings LLC/Intrepid Finance Co., | 26,177 | 26,242 | ||||||
Utilities – 0.5% | ||||||||
AES Corp., | 21,971 | 24,608 | ||||||
Waste & Environment Services & Equipment – 2.1% |
| |||||||
ADS Waste Holdings, Inc., | 30,250 | 31,535 | ||||||
Casella Waste Systems, Inc., | 29,180 | 29,253 | ||||||
Clean Harbors, Inc., | 22,275 | 22,080 | ||||||
Covanta Holding Corp., | 23,468 | 24,759 | ||||||
107,627 | ||||||||
Wireless Telecommunications Services – 1.4% |
| |||||||
Consolidated Communications Finance II Co., | 8,850 | 8,806 | ||||||
Hughes Satellite Systems Corp., | 24,902 | 27,143 | ||||||
Sprint Corp., | 32,425 | 34,370 | ||||||
70,319 | ||||||||
Wireline Telecommunications Services – 3.5% |
| |||||||
EarthLink Holdings Corp., | 8,115 | 8,322 | ||||||
Frontier Communications Corp., | 33,075 | 34,315 | ||||||
GCI, Inc., | 20,106 | 20,709 | ||||||
Level 3 Escrow II, Inc., | 13,425 | 13,224 | ||||||
Level 3 Financing, Inc., | 9,740 | 10,032 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 43 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
HIGH YIELD FIXED INCOME FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 72.1% – continued | ||||||||
Wireline Telecommunications Services – 3.5% – continued |
| |||||||
Qwest Capital Funding, Inc., | $33,685 | $34,443 | ||||||
tw telecom holdings, Inc., | 5,109 | 5,722 | ||||||
West Corp., | 19,675 | 18,150 | ||||||
Windstream Corp., | 21,939 | 23,365 | ||||||
7.50%, 4/1/23 | 14,100 | 14,453 | ||||||
182,735 | ||||||||
Total Corporate Bonds | ||||||||
(Cost $3,703,612) | 3,714,655 | |||||||
FOREIGN ISSUER BONDS – 21.8% | ||||||||
Aerospace & Defense – 0.7% | ||||||||
Bombardier, Inc., | 35,486 | 35,841 | ||||||
Airlines – 0.6% | ||||||||
Air Canada, | 12,450 | 13,664 | ||||||
7.75%, 4/15/21 (1) | 15,290 | 15,596 | ||||||
29,260 | ||||||||
Banking – 0.6% | ||||||||
Credit Suisse Group A.G., | 30,450 | 31,973 | ||||||
Cable & Satellite – 1.7% | ||||||||
Altice S.A., | 21,725 | 22,431 | ||||||
Numericable Group S.A., | 27,545 | 27,752 | ||||||
VTR Finance B.V., | 34,000 | 35,190 | ||||||
85,373 | ||||||||
Casinos & Gaming – 1.0% | ||||||||
MCE Finance Ltd., | 28,205 | 27,077 | ||||||
Wynn Macau Ltd., | 24,550 | 23,691 | ||||||
50,768 | ||||||||
Chemicals – 1.0% | ||||||||
Braskem Finance Ltd., | 27,025 | 28,106 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 21.8% – continued | ||||||||
Chemicals – 1.0% – continued | ||||||||
INEOS Group Holdings S.A., | $24,995 | $24,620 | ||||||
52,726 | ||||||||
Commercial Finance – 1.8% | ||||||||
Aircastle Ltd., | 35,250 | 34,810 | ||||||
AWAS Aviation Capital Ltd., | 26,897 | 27,332 | ||||||
Fly Leasing Ltd., | 26,800 | 27,872 | ||||||
90,014 | ||||||||
Containers & Packaging – 0.6% | ||||||||
Coveris Holdings S.A., | 30,375 | 31,742 | ||||||
Diversified Banks – 1.3% | ||||||||
Credit Agricole S.A., | 30,025 | 30,325 | ||||||
Nordea Bank AB, | 8,850 | 8,695 | ||||||
Royal Bank of Scotland Group PLC, | 24,070 | 25,454 | ||||||
64,474 | ||||||||
Exploration & Production – 1.7% | ||||||||
EnQuest PLC, | 27,894 | 26,308 | ||||||
Jupiter Resources, Inc., | 13,275 | 11,782 | ||||||
Lightstream Resources Ltd., | 24,050 | 23,809 | ||||||
Ultra Petroleum Corp., | 24,100 | 23,015 | ||||||
84,914 | ||||||||
Food & Beverage – 1.2% | ||||||||
JBS Investments GmbH, | 17,825 | 18,939 | ||||||
7.25%, 4/3/24 (1) | 12,575 | 12,826 | ||||||
Marfrig Holding Europe B.V., | 33,200 | 32,304 | ||||||
64,069 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 44 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 21.8% – continued | ||||||||
Hardware – 0.6% | ||||||||
MMI International Ltd., | $28,730 | $29,017 | ||||||
Medical Equipment & Devices Manufacturing – 0.6% |
| |||||||
ConvaTec Finance International S.A., | 32,182 | 32,745 | ||||||
Metals & Mining – 0.6% | ||||||||
Vedanta Resources PLC, | 28,450 | 32,575 | ||||||
Oil & Gas Services & Equipment – 1.0% | ||||||||
Offshore Group Investment Ltd., | 18,305 | 16,978 | ||||||
7.13%, 4/1/23 | 13,375 | 11,787 | ||||||
Seadrill Ltd., | 26,100 | 24,351 | ||||||
53,116 | ||||||||
Paper – 0.5% | ||||||||
Cascades, Inc., | 26,625 | 25,826 | ||||||
Restaurants – 0.4% | ||||||||
Arcos Dorados Holdings, Inc., | 20,774 | 20,618 | ||||||
Transportation & Logistics – 2.1% | ||||||||
Eletson Holdings, | 26,715 | 27,249 | ||||||
Navios Maritime Acquisition Corp./Navios Acquisition Finance US, Inc., | 28,000 | 27,020 | ||||||
Navios South American Logistics, Inc./Navios Logistics Finance US, Inc., | 26,875 | 26,606 | ||||||
Teekay Offshore Partners L.P./Teekay Offshore Finance Corp., | 30,225 | 29,621 | ||||||
110,496 | ||||||||
Wireless Telecommunications Services – 2.4% |
| |||||||
Digicel Group Ltd., | 35,139 | 36,197 | ||||||
Intelsat Luxembourg S.A., | 33,285 | 33,909 | ||||||
Millicom International Cellular S.A., | 4,080 | 4,233 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 21.8% – continued | ||||||||
Wireless Telecommunications Services – 2.4% – continued |
| |||||||
Telemovil Finance Co. Ltd., | $25,088 | $25,746 | ||||||
Wind Acquisition Finance S.A., | 23,000 | 23,115 | ||||||
123,200 | ||||||||
Wireline Telecommunications Services – 1.4% |
| |||||||
B Communications Ltd., | 25,150 | 26,753 | ||||||
Columbus International, Inc., | 27,225 | 28,314 | ||||||
Virgin Media Finance PLC, | 17,250 | 17,272 | ||||||
72,339 | ||||||||
Total Foreign Issuer Bonds | ||||||||
(Cost $1,119,516) | 1,121,086 | |||||||
NUMBER OF SHARES | VALUE (000s) | |||||||
PREFERRED STOCKS – 0.4% | ||||||||
Banks – 0.4% | ||||||||
GMAC Capital Trust I | 822,550 | $21,888 | ||||||
Total Preferred Stocks | ||||||||
(Cost $20,094) | 21,888 | |||||||
NUMBER OF SHARES | VALUE (000s) | |||||||
INVESTMENT COMPANIES – 5.5% | ||||||||
Northern Institutional Funds - Diversified Assets | 284,560,959 | $284,561 | ||||||
Total Investment Companies | ||||||||
(Cost $284,561) | 284,561 | |||||||
Total Investments – 99.8% | ||||||||
(Cost $5,127,783) | 5,142,190 | |||||||
Other Assets less Liabilities – 0.2% | 8,651 | |||||||
NET ASSETS – 100.0% | $5,150,841 |
(1) | 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. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Trustees of Northern Funds. |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 45 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
HIGH YIELD FIXED INCOME FUND continued
(2) | Security is payment in-kind bond. |
(3) | When-Issued Security. |
(4) | Restricted security that has been deemed illiquid. At September 30, 2014, the value of these restricted illiquid securities amounted to approximately $30,003,000 or 0.6% of net assets. Additional information on each restricted illiquid security is as follows: |
SECURITY | ACQUISITION AND | ACQUISITION (000s) | ||||
JPR Royalty Sub LLC, 14.00%, 9/1/20 | 3/10/11 | $8,000 | ||||
Sterling Entertainment Enterprises LLC, 9.75%, 12/15/19 | 12/28/12 | 23,800 |
(5) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
(6) | At March 31, 2014, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $173,296,000 with net purchases of approximately $111,265,000 during the six months ended September 30, 2014. |
Percentages shown are based on Net Assets.
At September 30, 2014, the credit quality distribution for the Fund as a percentage of investments including cash was:
QUALITY DISTRIBUTION* | % OF INVESTMENTS | |||
BBB | 1.9% | |||
BB | 25.4 | |||
B | 44.1 | |||
CCC | 20.3 | |||
Not Rated | 2.7 | |||
Cash Equivalents | 5.6 | |||
Total | 100.0% |
* Credit quality ratings are based on the conservative average of Moody’s, Standard & Poor’s and Fitch ratings. If ratings from all three rating agencies disagree, the model assigns the middle rating to the security. If two of the three agree, the model assigns the rating from those two to the security. If none of these three rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Corporate Bonds | $ – | $3,714,655 | (1) | $– | $3,714,655 | |||||||||||
Foreign Issuer Bonds | – | 1,121,086 | (1) | – | 1,121,086 | |||||||||||
Preferred Stocks | 21,888 | (1) | – | – | 21,888 | |||||||||||
Investment Companies | 284,561 | – | – | 284,561 | ||||||||||||
Total Investments | $306,449 | $4,835,741 | $– | $5,142,190 |
(1) | Classifications as defined in the Schedule of Investments. |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 46 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED)
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1 and Level 2 classifications based on levels assigned to the securities on March 31, 2014.
The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:
BALANCE AS OF 3/31/14 (000s) | ACCRUED DISCOUNTS (PREMIUMS) (000s) | REALIZED GAINS (LOSSES) (000s) | CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) (000s) | PURCHASES (000s) | SALES (000s) | TRANSFERS LEVEL 3 | TRANSFERS OUT OF LEVEL 3 (000s) (1) | BALANCE AS OF 9/30/14 (000s) | CHANGE IN (000s) | |||||||||||||||||||||||||||||||
Corporate Bonds | ||||||||||||||||||||||||||||||||||||||||
Media | $ | 24,692 | $ | – | $ | – | $ | – | $ | – | $ | – | $ | – | $ | (24,692 | ) | $ | – | $ | – |
(1) | The Transfers Out of Level 3, noted above, were due to the Fund receiving an evaluated price using observable inputs based on quoted prices in active markets for similar securities. |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 47 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SHORT BOND FUND
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
ASSET-BACKED SECURITIES – 20.0% | ||||||||
Automobile – 7.2% | ||||||||
CarMax Auto Owner Trust, | $4,565 | $4,555 | ||||||
Harley-Davidson Motorcycle Trust, | 2,135 | 2,131 | ||||||
Honda Auto Receivables Owner Trust, | 3,275 | 3,265 | ||||||
Honda Auto Receivables Owner Trust, | 4,610 | 4,602 | ||||||
Hyundai Auto Receivables Trust, | 4,530 | 4,530 | ||||||
Nissan Auto Receivables Owner Trust, | 940 | 938 | ||||||
Nissan Auto Receivables Owner Trust, | 2,245 | 2,239 | ||||||
Toyota Auto Receivables Owner Trust, | 4,365 | 4,360 | ||||||
Toyota Auto Receivables Owner Trust, | 3,090 | 3,084 | ||||||
USAA Auto Owner Trust, | 1,965 | 1,964 | ||||||
Volkswagen Auto Loan Enhanced Trust, | 930 | 929 | ||||||
Volkswagen Auto Loan Enhanced Trust, | 1,895 | 1,890 | ||||||
World Omni Auto Receivables Trust, | 940 | 941 | ||||||
World Omni Auto Receivables Trust, | 1,495 | 1,491 | ||||||
36,919 | ||||||||
Commercial Mortgage-Backed Securities – 9.9% |
| |||||||
Banc of America Commercial Mortgage Trust, Series 2006-5, Class A4, | 3,710 | 3,941 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
ASSET-BACKED SECURITIES – 20.0% – continued | ||||||||
Commercial Mortgage-Backed Securities – 9.9% – continued |
| |||||||
Bear Stearns Commercial Mortgage Securities Trust, | $1,425 | $1,474 | ||||||
Bear Stearns Commercial Mortgage Securities Trust, | 2,992 | 3,033 | ||||||
Bear Stearns Commercial Mortgage Securities Trust, | 84 | 85 | ||||||
Bear Stearns Commercial Mortgage Securities Trust, | 3,893 | 4,141 | ||||||
Bear Stearns Commercial Mortgage Securities Trust, | 3,528 | 3,778 | ||||||
Bear Stearns Commercial Mortgage Securities Trust, | 175 | 192 | ||||||
Bear Stearns Commercial Mortgage Securities Trust, | 525 | 578 | ||||||
Citigroup Commercial Mortgage Trust, | 3,419 | 3,751 | ||||||
Citigroup/Deutsche Bank Commercial Mortgage Trust, | 2,214 | 2,336 | ||||||
JP Morgan Chase Commercial Mortgage Securities Trust, | 2,507 | 2,655 | ||||||
JP Morgan Chase Commercial Mortgage Securities Trust, | 3,399 | 3,617 | ||||||
LB-UBS Commercial Mortgage Trust, | 1,225 | 1,284 | ||||||
LB-UBS Commercial Mortgage Trust, | 3,341 | 3,555 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 48 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
ASSET-BACKED SECURITIES – 20.0% – continued | ||||||||
Commercial Mortgage-Backed Securities – 9.9% – continued |
| |||||||
LB-UBS Commercial Mortgage Trust, | $4,033 | $4,512 | ||||||
Merrill Lynch Mortgage Trust, | 1,145 | 1,221 | ||||||
Morgan Stanley Capital I Trust, | 1,146 | 1,215 | ||||||
Morgan Stanley Capital I Trust, | 643 | 703 | ||||||
Morgan Stanley Capital I Trust, | 3,070 | 3,372 | ||||||
Morgan Stanley Capital I Trust, | 3,001 | 3,213 | ||||||
Wachovia Bank Commercial Mortgage Trust, Series 2006-C29, Class A4, | 1,976 | 2,109 | ||||||
50,765 | ||||||||
Credit Card – 2.8% | ||||||||
American Express Credit Account Master Trust, | 1,485 | 1,480 | ||||||
Citibank Credit Card Issuance Trust, | 5,005 | 5,000 | ||||||
Citibank Credit Card Issuance Trust, | 4,050 | 4,033 | ||||||
Citibank Credit Card Issuance Trust, | 1,930 | 1,926 | ||||||
Discover Card Execution Note Trust, | 1,845 | 1,841 | ||||||
14,280 | ||||||||
Utilities – 0.1% | ||||||||
CenterPoint Energy Transition Bond Co. IV LLC, | 394 | 395 | ||||||
Total Asset-Backed Securities | ||||||||
(Cost $103,625) | 102,359 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 31.6% | ||||||||
Auto Parts Manufacturing – 0.4% | ||||||||
Dana Holding Corp., | $500 | $530 | ||||||
Goodyear Tire & Rubber (The) Co., | 900 | 964 | ||||||
Johnson Controls, Inc., | 695 | 689 | ||||||
2,183 | ||||||||
Automobiles Manufacturing – 1.4% | ||||||||
American Honda Finance Corp., | 620 | 623 | ||||||
1.20%, 7/14/17 | 775 | 772 | ||||||
Daimler Finance North America LLC, | 675 | 680 | ||||||
Ford Motor Credit Co. LLC, | 680 | 703 | ||||||
4.25%, 2/3/17 | 300 | 318 | ||||||
1.68%, 9/8/17 | 2,340 | 2,330 | ||||||
General Motors Financial Co., Inc., | 1,100 | 1,111 | ||||||
Nissan Motor Acceptance Corp., | 400 | 405 | ||||||
6,942 | ||||||||
Banks – 1.2% | ||||||||
Branch Banking & Trust Co., | 835 | 829 | ||||||
Discover Bank, | 415 | 413 | ||||||
Fifth Third Bank, | 645 | 646 | ||||||
HSBC USA, Inc., | 1,800 | 1,798 | ||||||
JPMorgan Chase Bank N.A., | 1,175 | 1,314 | ||||||
KeyBank N.A., | 525 | 526 | ||||||
PNC Funding Corp., | 380 | 392 | ||||||
5,918 | ||||||||
Biotechnology – 0.9% | ||||||||
Amgen, Inc., | 1,905 | 1,895 | ||||||
Gilead Sciences, Inc., | 615 | 617 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 49 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SHORT BOND FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 31.6% – continued | ||||||||
Biotechnology – 0.9% – continued | ||||||||
3.05%, 12/1/16 | $515 | $536 | ||||||
Roche Holdings, Inc., | 1,310 | 1,305 | ||||||
4,353 | ||||||||
Cable & Satellite – 0.7% | ||||||||
CCO Holdings LLC/CCO Holdings Capital Corp., | 500 | 490 | ||||||
Comcast Corp., | 1,060 | 1,133 | ||||||
6.30%, 11/15/17 | 660 | 754 | ||||||
DIRECTV Holdings LLC/DIRECTV Financing Co., Inc., | 1,145 | 1,170 | ||||||
3,547 | ||||||||
Chemicals – 0.7% | ||||||||
Airgas, Inc., | 815 | 840 | ||||||
Ashland, Inc., | 1,000 | 1,000 | ||||||
Dow Chemical (The) Co., | 1,050 | 1,072 | ||||||
Eastman Chemical Co., | 325 | 332 | ||||||
Rentech Nitrogen Partners L.P./Rentech Nitrogen Finance Corp., | 290 | 288 | ||||||
3,532 | ||||||||
Coal Operations – 0.1% | ||||||||
CONSOL Energy, Inc., | 700 | 690 | ||||||
Commercial Finance – 1.3% | ||||||||
Air Lease Corp., | 680 | 734 | ||||||
CIT Group, Inc., | 505 | 496 | ||||||
General Electric Capital Corp., | 1,490 | 1,562 | ||||||
5.40%, 2/15/17 | 1,450 | 1,588 | ||||||
1.25%, 5/15/17 | 1,250 | 1,249 | ||||||
International Lease Finance Corp., | 1,000 | 990 | ||||||
6,619 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 31.6% – continued | ||||||||
Communications Equipment – 0.5% | ||||||||
Apple, Inc., | $760 | $757 | ||||||
Cisco Systems, Inc., | 535 | 535 | ||||||
3.15%, 3/14/17 | 780 | 818 | ||||||
Juniper Networks, Inc., | 500 | 513 | ||||||
2,623 | ||||||||
Consumer Finance – 0.6% | ||||||||
Ally Financial, Inc., | 695 | 681 | ||||||
3.25%, 9/29/17 | 440 | 434 | ||||||
American Express Credit Corp., | 485 | 501 | ||||||
Capital One Financial Corp., | 630 | 632 | ||||||
Synchrony Financial, | 715 | 716 | ||||||
2,964 | ||||||||
Consumer Products – 0.2% | ||||||||
Avon Products, Inc., | 1,000 | 1,010 | ||||||
Consumer Services – 0.5% | ||||||||
APX Group, Inc., | 625 | 605 | ||||||
Service Corp. International, | 550 | 556 | ||||||
United Rentals North America, Inc., | 500 | 521 | ||||||
7.63%, 4/15/22 | 495 | 538 | ||||||
6.13%, 6/15/23 | 395 | 406 | ||||||
2,626 | ||||||||
Containers & Packaging – 0.6% | ||||||||
Ball Corp., | 500 | 518 | ||||||
Graphic Packaging International, Inc., | 500 | 499 | ||||||
Plastipak Holdings, Inc., | 650 | 660 | ||||||
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu, | 750 | 763 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 50 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 31.6% – continued | ||||||||
Containers & Packaging – 0.6% – continued |
| |||||||
8.25%, 2/15/21 | $500 | $529 | ||||||
2,969 | ||||||||
Department Stores – 0.2% | ||||||||
Macy’s Retail Holdings, Inc., | 940 | 1,034 | ||||||
Diversified Banks – 2.6% | ||||||||
Bank of America Corp., | 1,070 | 1,099 | ||||||
3.63%, 3/17/16 | 500 | 518 | ||||||
1.05%, 3/22/16 | 1,245 | 1,254 | ||||||
3.88%, 3/22/17 | 590 | 621 | ||||||
5.13%, 6/17/19 | 1,580 | 1,528 | ||||||
Citigroup, Inc., | 1,110 | 1,118 | ||||||
1.70%, 7/25/16 | 1,155 | 1,167 | ||||||
1.35%, 3/10/17 | 1,100 | 1,097 | ||||||
6.00%, 8/15/17 | 545 | 610 | ||||||
JPMorgan Chase & Co., | 910 | 914 | ||||||
3.15%, 7/5/16 | 865 | 895 | ||||||
7.90%, 4/30/18 | 370 | 400 | ||||||
Wells Fargo & Co., | 1,450 | 1,441 | ||||||
7.98%, 3/15/18 | 370 | 405 | ||||||
13,067 | ||||||||
Electrical Equipment Manufacturing – 0.4% |
| |||||||
Amphenol Corp., | 1,110 | 1,109 | ||||||
General Electric Co., | 550 | 552 | ||||||
Roper Industries, Inc., | 565 | 567 | ||||||
2,228 | ||||||||
Entertainment Content – 0.6% | ||||||||
CBS Corp., | 935 | 947 | ||||||
Midcontinent Communications & Midcontinent Finance Corp., | 525 | 530 | ||||||
Time Warner, Inc., | 800 | 816 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 31.6% – continued | ||||||||
Entertainment Content – 0.6% – continued |
| |||||||
Viacom, Inc., | $575 | $591 | ||||||
2,884 | ||||||||
Exploration & Production – 1.9% | ||||||||
California Resources Corp., | 750 | 761 | ||||||
Continental Resources, Inc., | 970 | 1,023 | ||||||
Denbury Resources, Inc., | 997 | 1,037 | ||||||
5.50%, 5/1/22 | 675 | 668 | ||||||
Devon Energy Corp., | 630 | 631 | ||||||
Linn Energy LLC/Linn Energy Finance Corp., | 675 | 662 | ||||||
6.25%, 11/1/19 | 1,000 | 976 | ||||||
Marathon Oil Corp., | 690 | 690 | ||||||
Murphy Oil Corp., | 560 | 569 | ||||||
Newfield Exploration Co., | 850 | 886 | ||||||
QEP Resources, Inc., | 470 | 510 | ||||||
Range Resources Corp., | 900 | 947 | ||||||
Rosetta Resources, Inc., | 500 | 488 | ||||||
9,848 | ||||||||
Financial Services – 2.8% | ||||||||
BlackRock, Inc., | 775 | 780 | ||||||
Charles Schwab (The) Corp., | 555 | 557 | ||||||
Goldman Sachs Group (The), Inc., 3.63%, 2/7/16 | 3,160 | 3,266 | ||||||
5.63%, 1/15/17 | 1,355 | 1,471 | ||||||
2.90%, 7/19/18 | 1,045 | 1,070 | ||||||
Icahn Enterprises L.P./Icahn Enterprises Finance Corp., | 335 | 332 | ||||||
4.88%, 3/15/19 | 335 | 330 | ||||||
6.00%, 8/1/20 | 300 | 308 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 51 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SHORT BOND FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 31.6% – continued | ||||||||
Financial Services – 2.8% – continued | ||||||||
Icahn Enterprises L.P./lcahn Enterprises Finance Corp., | $680 | $680 | ||||||
KKR Group Finance Co. LLC, | 385 | 450 | ||||||
Morgan Stanley, | 1,000 | 1,014 | ||||||
1.75%, 2/25/16 | 1,815 | 1,834 | ||||||
4.75%, 3/22/17 | 575 | 618 | ||||||
Prospect Capital Corp., | 750 | 781 | ||||||
TD Ameritrade Holding Corp., | 700 | 704 | ||||||
14,195 | ||||||||
Food & Beverage – 1.2% | ||||||||
Anheuser-Busch InBev Finance, Inc., 0.80%, 1/15/16 | 1,170 | 1,173 | ||||||
1.13%, 1/27/17 | 730 | 730 | ||||||
ConAgra Foods, Inc., | 800 | 804 | ||||||
1.30%, 1/25/16 | 490 | 492 | ||||||
General Mills, Inc., | 625 | 627 | ||||||
Kellogg Co., | 570 | 572 | ||||||
SABMiller Holdings, Inc., | 455 | 457 | ||||||
Smithfield Foods, Inc., | 675 | 677 | ||||||
Wm Wrigley Jr Co., | 815 | 819 | ||||||
6,351 | ||||||||
Hardware – 0.2% | ||||||||
NetApp, Inc., | 225 | 226 | ||||||
Sanmina Corp., | 1,000 | 980 | ||||||
1,206 | ||||||||
Health Care Facilities & Services – 1.1% |
| |||||||
AmerisourceBergen Corp., | 1,355 | 1,346 | ||||||
Cardinal Health, Inc., | 410 | 414 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 31.6% – continued | ||||||||
Health Care Facilities & Services – 1.1% – continued |
| |||||||
Express Scripts Holding Co., | $665 | $669 | ||||||
3.13%, 5/15/16 | 500 | 518 | ||||||
HCA, Inc., | 875 | 956 | ||||||
McKesson Corp., | 355 | 355 | ||||||
5.70%, 3/1/17 | 190 | 209 | ||||||
1.29%, 3/10/17 | 950 | 947 | ||||||
5,414 | ||||||||
Home Improvement – 0.1% | ||||||||
Whirlpool Corp., | 680 | 678 | ||||||
Homebuilders – 0.4% | ||||||||
Lennar Corp., | 1,925 | 1,906 | ||||||
4.50%, 6/15/19 | 330 | 327 | ||||||
2,233 | ||||||||
Industrial Other – 0.2% | ||||||||
SBA Communications Corp., | 1,000 | 1,015 | ||||||
Life Insurance – 0.6% | ||||||||
Lincoln National Corp., | 300 | 307 | ||||||
MetLife, Inc., | 785 | 861 | ||||||
Metropolitan Life Global Funding I, 1.30%, 4/10/17 (1)(2) | 415 | 414 | ||||||
Principal Financial Group, Inc., | 500 | 500 | ||||||
Prudential Financial, Inc., | 145 | 150 | ||||||
Voya Financial, Inc., | 680 | 684 | ||||||
2,916 | ||||||||
Machinery Manufacturing – 0.2% | ||||||||
Eaton Corp., | 750 | 752 | ||||||
Managed Care – 0.3% | ||||||||
Cigna Corp., | 580 | 600 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 52 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 31.6% – continued | ||||||||
Managed Care – 0.3% – continued | ||||||||
UnitedHealth Group, Inc., | $410 | $411 | ||||||
WellPoint, Inc., | 575 | 578 | ||||||
1,589 | ||||||||
Manufactured Goods – 0.1% | ||||||||
Gates Global LLC/Gates Global Co., | 750 | 705 | ||||||
Medical Equipment & Devices Manufacturing – 0.6% |
| |||||||
Baxter International, Inc., | 515 | 578 | ||||||
Thermo Fisher Scientific, Inc., | 560 | 578 | ||||||
1.30%, 2/1/17 | 1,215 | 1,211 | ||||||
Zimmer Holdings, Inc., | 625 | 626 | ||||||
2,993 | ||||||||
Metals & Mining – 0.3% | ||||||||
Freeport-McMoRan Copper & Gold, Inc., | 480 | 481 | ||||||
Glencore Funding LLC, | 1,065 | 1,073 | ||||||
Steel Dynamics, Inc., | 160 | 169 | ||||||
1,723 | ||||||||
Oil & Gas Services & Equipment – 0.4% |
| |||||||
Atwood Oceanics, Inc., | 250 | 256 | ||||||
Cameron International Corp., | 1,530 | 1,529 | ||||||
Pioneer Energy Services Corp., | 400 | 396 | ||||||
2,181 | ||||||||
Pharmaceuticals – 0.4% | ||||||||
AbbVie, Inc., | 1,035 | 1,039 | ||||||
Mylan, Inc., | 400 | 404 | ||||||
Zoetis, Inc., | 830 | 832 | ||||||
2,275 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 31.6% – continued | ||||||||
Pipeline – 0.4% | ||||||||
Enterprise Products Operating LLC, | $350 | $357 | ||||||
Regency Energy Partners L.P./Regency Energy Finance Corp., | 760 | 790 | ||||||
Tesoro Logistics L.P./Tesoro Logistics Finance Corp., | 392 | 406 | ||||||
Williams Partners L.P., | 670 | 678 | ||||||
2,231 | ||||||||
Power Generation – 0.2% | ||||||||
Dominion Gas Holdings LLC, | 465 | 464 | ||||||
Exelon Generation Co. LLC, | 480 | 540 | ||||||
1,004 | ||||||||
Property & Casualty Insurance – 0.0% | ||||||||
American International Group, Inc., | 145 | 147 | ||||||
Publishing & Broadcasting – 1.3% | ||||||||
21st Century Fox America, Inc., | 1,105 | 1,116 | ||||||
7.25%, 5/18/18 | 460 | 543 | ||||||
Gannett Co., Inc., | 1,000 | 968 | ||||||
NBCUniversal Enterprise, Inc., | 1,300 | 1,303 | ||||||
NBCUniversal Media LLC, | 1,060 | 1,080 | ||||||
Starz LLC/Starz Finance Corp., | 500 | 505 | ||||||
Univision Communications, Inc., | 1,000 | 1,042 | ||||||
6,557 | ||||||||
Real Estate – 1.2% | ||||||||
AvalonBay Communities, Inc., | 800 | 873 | ||||||
DuPont Fabros Technology L.P., | �� | 465 | 473 | |||||
Health Care REIT, Inc., | 1,215 | 1,254 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 53 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SHORT BOND FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 31.6% – continued | ||||||||
Real Estate – 1.2% – continued | ||||||||
Host Hotels & Resorts L.P., | $350 | $371 | ||||||
Kimco Realty Corp., | 445 | 491 | ||||||
Ventas Realty L.P., | 515 | 519 | ||||||
1.25%, 4/17/17 | 1,395 | 1,388 | ||||||
WEA Finance LLC/Westfield UK & Europe Finance PLC, | 530 | 531 | ||||||
5,900 | ||||||||
Refining & Marketing – 0.3% | ||||||||
Phillips 66, | 390 | 405 | ||||||
Tesoro Corp., | 450 | 461 | ||||||
Western Refining, Inc., | 550 | 550 | ||||||
1,416 | ||||||||
Restaurants – 0.1% | ||||||||
Starbucks Corp., | 625 | 625 | ||||||
Retail – Consumer Discretionary – 0.5% |
| |||||||
Amazon.com, Inc., | 600 | 601 | ||||||
Hertz (The) Corp., | 600 | 621 | ||||||
5.88%, 10/15/20 | 250 | 254 | ||||||
Home Depot (The), Inc., | 1,035 | 1,103 | ||||||
2,579 | ||||||||
Semiconductors – 0.1% | ||||||||
Samsung Electronics America, Inc., 1.75%, 4/10/17 (1)(2) | 530 | 532 | ||||||
Software & Services – 0.7% | ||||||||
International Business Machines Corp., | 565 | 633 | ||||||
Oracle Corp., | 545 | 578 | ||||||
0.43%, 7/7/17 | 725 | 726 | ||||||
Symantec Corp., | 1,065 | 1,084 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 31.6% – continued | ||||||||
Software & Services – 0.7% – continued |
| |||||||
Xerox Corp., | $580 | $588 | ||||||
3,609 | ||||||||
Supermarkets & Pharmacies – 0.1% | ||||||||
CVS Caremark Corp., | 421 | 468 | ||||||
Tobacco – 0.6% | ||||||||
Lorillard Tobacco Co., | 1,370 | 1,423 | ||||||
Philip Morris International, Inc., | 900 | 926 | ||||||
Reynolds American, Inc., | 800 | 802 | ||||||
3,151 | ||||||||
Transportation & Logistics – 0.3% | ||||||||
PACCAR Financial Corp., | 1,050 | 1,045 | ||||||
Ryder System, Inc., | 585 | 591 | ||||||
1,636 | ||||||||
Utilities – 0.6% | ||||||||
CenterPoint Energy, Inc., | 260 | 300 | ||||||
Duke Energy Corp., | 590 | 592 | ||||||
IPALCO Enterprises, Inc., | 1,040 | 1,096 | ||||||
Southern (The) Co., | 1,240 | 1,234 | ||||||
3,222 | ||||||||
Waste & Environment Services & Equipment – 0.1% |
| |||||||
Clean Harbors, Inc., | 725 | 725 | ||||||
Wireless Telecommunications Services – 0.9% |
| |||||||
AT&T, Inc., | 660 | 665 | ||||||
Qualitytech L.P./QTS Finance Corp., 5.88%, 8/1/22 (1)(2) | 570 | 559 | ||||||
SBA Tower Trust, | 605 | 613 | ||||||
Sprint Communications, Inc., | 1,000 | 1,042 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 54 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 31.6% – continued | ||||||||
Wireless Telecommunications Services – 0.9% – continued |
| |||||||
Verizon Communications, Inc., | $535 | $532 | ||||||
3.65%, 9/14/18 | 980 | 1,033 | ||||||
4,444 | ||||||||
Wireline Telecommunications Services – 0.5% |
| |||||||
Frontier Communications Corp., | 650 | 721 | ||||||
6.25%, 9/15/21 | 1,500 | 1,485 | ||||||
tw telecom holdings, Inc., | 480 | 538 | ||||||
2,744 | ||||||||
Total Corporate Bonds | ||||||||
(Cost $162,517) | 162,253 | |||||||
FOREIGN ISSUER BONDS – 9.6% | ||||||||
Aerospace & Defense – 0.4% | ||||||||
Bombardier, Inc., | 1,000 | 1,015 | ||||||
4.75%, 4/15/19 (1)(2) | 1,100 | 1,097 | ||||||
2,112 | ||||||||
Automobiles Manufacturing – 0.2% | ||||||||
Jaguar Land Rover Automotive PLC, | 1,000 | 1,001 | ||||||
Banks – 1.9% | ||||||||
Abbey National Treasury Services PLC, 1.38%, 3/13/17 | 840 | 840 | ||||||
ANZ New Zealand Int’l Ltd., | 255 | 256 | ||||||
1.40%, 4/27/17 (1)(2) | 805 | 803 | ||||||
Bank of Tokyo-Mitsubishi UFJ (The) Ltd., 1.20%, 3/10/17 (1)(2) | 835 | 831 | ||||||
Commonwealth Bank of Australia, | 2,370 | 2,360 | ||||||
Credit Suisse, | 1,325 | 1,317 | ||||||
Deutsche Bank A.G., | 1,100 | 1,100 | ||||||
Mizuho Bank Ltd., | 550 | 549 | ||||||
Sumitomo Mitsui Banking Corp., | 505 | 505 | ||||||
Svenska Handelsbanken AB, | 660 | 664 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 9.6% – continued | ||||||||
Banks – 1.9% – continued | ||||||||
Westpac Banking Corp., | $755 | $756 | ||||||
9,981 | ||||||||
Chemicals – 0.4% | ||||||||
Ineos Finance PLC, | 490 | 522 | ||||||
INEOS Group Holdings S.A., | 750 | 748 | ||||||
5.88%, 2/15/19 (1) | 870 | 857 | ||||||
2,127 | ||||||||
Commercial Finance – 0.3% | ||||||||
AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, | 1,090 | 1,064 | ||||||
3.75%, 5/15/19 (1)(2) | 490 | 475 | ||||||
1,539 | ||||||||
Diversified Banks – 1.2% | ||||||||
Bank of Nova Scotia, | 1,460 | 1,458 | ||||||
HSBC Holdings PLC, | 705 | 700 | ||||||
Nordea Bank AB, | 1,855 | 1,823 | ||||||
Royal Bank of Canada, | 330 | 330 | ||||||
Royal Bank of Scotland Group PLC, | 1,000 | 1,000 | ||||||
Standard Chartered PLC, | 945 | 942 | ||||||
6,253 | ||||||||
Exploration & Production – 0.5% | ||||||||
Canadian Natural Resources Ltd., | 375 | 414 | ||||||
CNOOC Finance 2013 Ltd., | 1,125 | 1,126 | ||||||
Ultra Petroleum Corp., | 820 | 824 | ||||||
2,364 | ||||||||
Food & Beverage – 0.7% | ||||||||
Heineken N.V., | 765 | 766 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 55 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SHORT BOND FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 9.6% – continued | ||||||||
Food & Beverage – 0.7% – continued | ||||||||
Pernod Ricard S.A., | $1,100 | $1,134 | ||||||
SABMiller PLC, | 320 | 350 | ||||||
Suntory Holdings Ltd., | 1,495 | 1,495 | ||||||
3,745 | ||||||||
Government Agencies – 0.4% | ||||||||
Korea Land & Housing Corp., | 1,905 | 1,909 | ||||||
Hardware – 0.1% | ||||||||
Seagate HDD Cayman, | 364 | 386 | ||||||
Health Care Facilities & Services – 0.1% | ||||||||
Catamaran Corp., | 500 | 481 | ||||||
Integrated Oils – 1.1% | ||||||||
BP Capital Markets PLC, | 415 | 415 | ||||||
2.25%, 11/1/16 | 675 | 692 | ||||||
Petrobras Global Finance B.V., | 2,065 | 2,090 | ||||||
Petrobras International Finance Co., | 1,085 | 1,104 | ||||||
Shell International Finance B.V., | 490 | 490 | ||||||
Total Capital International S.A., | 810 | 814 | ||||||
5,605 | ||||||||
Internet Media – 0.1% | ||||||||
Baidu, Inc., | 415 | 427 | ||||||
Machinery Manufacturing – 0.2% | ||||||||
Pentair Finance S.A., | 180 | 181 | ||||||
Tyco Electronics Group S.A., | 660 | 751 | ||||||
932 | ||||||||
Medical Equipment & Devices Manufacturing – 0.1% |
| |||||||
Covidien International Finance S.A., 1.35%, 5/29/15 | 355 | 357 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 9.6% – continued | ||||||||
Metals & Mining – 0.3% | ||||||||
FMG Resources August 2006 Pty Ltd., | $680 | $692 | ||||||
Xstrata Finance Canada Ltd., | 615 | 622 | ||||||
1,314 | ||||||||
Oil & Gas Services & Equipment – 0.1% | ||||||||
Noble Holding International Ltd., | 485 | 494 | ||||||
Pharmaceuticals – 0.4% | ||||||||
Perrigo Co. PLC, | 815 | 816 | ||||||
Sanofi, | 600 | 618 | ||||||
Teva Pharmaceutical Finance II B.V./Teva Pharmaceutical Finance III LLC, | 750 | 763 | ||||||
2,197 | ||||||||
Pipeline – 0.1% | ||||||||
TransCanada PipeLines Ltd., | 330 | 330 | ||||||
Railroad – 0.0% | ||||||||
Canadian National Railway Co., | 265 | 268 | ||||||
Transportation & Logistics – 0.2% | ||||||||
Korea Expressway Corp., | 1,190 | 1,187 | ||||||
Wireless Telecommunications Services – 0.5% |
| |||||||
America Movil S.A.B. de C.V., | 985 | 999 | ||||||
Intelsat Jackson Holdings S.A., | 1,740 | 1,840 | ||||||
2,839 | ||||||||
Wireline Telecommunications Services – 0.3% |
| |||||||
British Telecommunications PLC, 1.63%, 6/28/16 | 1,080 | 1,090 | ||||||
Virgin Media Secured Finance PLC, 5.38%, 4/15/21 (1)(2) | 475 | 478 | ||||||
1,568 | ||||||||
Total Foreign Issuer Bonds | ||||||||
(Cost $49,507) | 49,416 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 56 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 5.2% (4) | ||||||||
Fannie Mae – 1.2% | ||||||||
Pool #555649, | $40 | $46 | ||||||
Pool #893082, | 333 | 359 | ||||||
Pool #AB3114, | 1,100 | 1,224 | ||||||
Pool #AD0915, | 122 | 137 | ||||||
Pool #AD7061, | 221 | 249 | ||||||
Pool #AI3471, | 403 | 446 | ||||||
Pool #AK0501, | 1,077 | 1,113 | ||||||
Pool #AO0315, | 1,369 | 1,415 | ||||||
Pool #AO4482, | 1,072 | 1,107 | ||||||
6,096 | ||||||||
Freddie Mac – 0.1% | ||||||||
Pool #1B3617, | 264 | 284 | ||||||
Pool #848076, | 175 | 188 | ||||||
472 | ||||||||
Freddie Mac Gold – 0.2% | ||||||||
Pool #A92650, | 502 | 559 | ||||||
Pool #G13387, | 232 | 248 | ||||||
807 | ||||||||
Government National Mortgage Association – 3.3% |
| |||||||
Series 2011-41, Class PA, | 2,460 | 2,574 | ||||||
Series 2011-49, Class A, | 883 | 892 | ||||||
Series 2012-123, Class A, | 2,881 | 2,646 | ||||||
Series 2012-2, Class A, | 991 | 998 | ||||||
Series 2012-22, Class AB, | 282 | 282 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 5.2% (4) – continued | ||||||||
Government National Mortgage Association – 3.3% – continued |
| |||||||
Series 2013-12, Class KA, | $404 | $392 | ||||||
Series 2013-142, Class AD, | 1,474 | 1,445 | ||||||
Series 2013-146, Class AK, | 1,543 | 1,541 | ||||||
Series 2013-156, Class AG, | 1,539 | 1,534 | ||||||
Series 2013-17, Class AF, | 1,268 | 1,239 | ||||||
Series 2013-176, Class AD, | 1,389 | 1,388 | ||||||
Series 2013-45, Class A, | 1,687 | 1,660 | ||||||
Series 2013-92, Class AB, | 594 | 588 | ||||||
17,179 | ||||||||
Government National Mortgage Association II – 0.4% |
| |||||||
Pool #82581, | 749 | 787 | ||||||
Pool #83021, | 1,043 | 1,090 | ||||||
1,877 | ||||||||
Total U.S. Government Agencies | ||||||||
(Cost $26,716) | 26,431 | |||||||
U.S. GOVERNMENT OBLIGATIONS – 28.2% | ||||||||
U.S. Treasury Inflation Indexed Bonds – 1.2% |
| |||||||
1.88%, 7/15/15 | 3,325 | 4,163 | ||||||
0.13%, 4/15/16 | 1,930 | 2,107 | ||||||
6,270 | ||||||||
U.S. Treasury Notes – 27.0% |
| |||||||
0.88%, 9/15/16 | 14,530 | 14,609 | ||||||
0.50%, 9/30/16 | 69,300 | 69,186 | ||||||
0.63%, 10/15/16 | 15,865 | 15,859 | ||||||
0.63%, 2/15/17 | 9,785 | 9,743 | ||||||
0.75%, 3/15/17 | 10,335 | 10,316 | ||||||
1.00%, 9/15/17 | 18,165 | 18,137 | ||||||
1.75%, 9/30/19 | 350 | 349 | ||||||
138,199 | ||||||||
Total U.S. Government Obligations | ||||||||
(Cost $144,550) | 144,469 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 57 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SHORT BOND FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
INVESTMENT COMPANIES – 4.0% | ||||||||
Northern Institutional Funds - Diversified Assets Portfolio, | 20,371,810 | $20,372 | ||||||
Total Investment Companies | ||||||||
(Cost $20,372) | 20,372 | |||||||
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
SHORT-TERM INVESTMENTS – 0.6% | ||||||||
U.S. Treasury Bill, | $3,300 | $3,298 | ||||||
Total Short-Term Investments | ||||||||
(Cost $3,298) | 3,298 | |||||||
Total Investments – 99.2% | ||||||||
(Cost $510,585) | 508,598 | |||||||
Other Assets less Liabilities – 0.8% | 4,075 | |||||||
NET ASSETS – 100.0% | $512,673 |
(1) | 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. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Trustees of Northern Funds. |
(2) | Restricted security that has been deemed illiquid. At September 30, 2014, the value of these restricted illiquid securities amounted to approximately $36,335,000 or 7.1% of net assets. Additional information on each restricted illiquid security is as follows: |
SECURITY | ACQUISITION AND ENFORCEABLE DATE | ACQUISITION (000s) | ||||
AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, 2.75%, 5/15/17 | 5/8/14 | $1,090 | ||||
AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, 3.75%, 5/15/19 | 5/8/14 | 490 | ||||
ANZ New Zealand Int’l Ltd., 1.13%, 3/24/16 | 3/20/13 | 255 | ||||
ANZ New Zealand Int’l Ltd., 1.40%, 4/27/17 | 2/20/14 | 805 | ||||
Bank of Tokyo-Mitsubishi UFJ (The) Ltd., 1.20%, 3/10/17 | 3/4/14 | 834 | ||||
Bombardier, Inc., 4.25%, 1/15/16 | 1/9/13 | 1,000 | ||||
Bombardier, Inc., 4.75%, 4/15/19 | 3/31/14 | 1,100 |
SECURITY | ACQUISITION AND ENFORCEABLE DATE | ACQUISITION (000s) | ||||
California Resources Corp., 5.50%, 9/15/21 | 9/11/14 | $750 | ||||
Commonwealth Bank of Australia, 1.40%, 9/8/17 | 9/3/14 | 2,368 | ||||
CONSOL Energy, Inc., 5.88%, 4/15/22 | 7/29/14 | 719 | ||||
Daimler Finance North America LLC, 1.45%, 8/1/16 | 7/24/13-4/3/14 | 678 | ||||
FMG Resources August 2006 Pty Ltd., 6.88%, 4/1/22 | 1/15/14-1/16/14 | 747 | ||||
Gannett Co., Inc., 4.88%, 9/15/21 | 9/3/14 | 985 | ||||
Glencore Funding LLC, 1.59%, 1/15/19 | 5/22/13 | 1,065 | ||||
INEOS Group Holdings S.A., 6.13%, 8/15/18 | 5/2/13 | 750 | ||||
Jaguar Land Rover Automotive PLC, 4.13%, 12/15/18 | 12/10/13 | 1,000 | ||||
KKR Group Finance Co. LLC, 6.38%, 9/29/20 | 4/15/13 | 462 | ||||
Korea Expressway Corp., 1.63%, 4/28/17 | 4/22/14 | 1,187 | ||||
Korea Land & Housing Corp., 1.88%, 8/2/17 | 4/28/14 | 1,898 | ||||
Metropolitan Life Global Funding I, 1.30%, 4/10/17 | 4/7/14 | 414 | ||||
Mizuho Bank Ltd., 2.45%, 4/16/19 | 4/9/14 | 549 | ||||
NBCUniversal Enterprise, Inc., 0.77%, 4/15/16 | 3/20/13 | 1,301 | ||||
Nissan Motor Acceptance Corp., 4.50%, 1/30/15 | 1/20/10 | 398 | ||||
Nordea Bank AB, 5.50%, 9/29/49 | 9/16/14 | 1,855 | ||||
Pernod Ricard S.A., 2.95%, 1/15/17 | 1/10/12-4/12/13 | 1,151 | ||||
Perrigo Co. PLC, 1.30%, 11/8/16 | 11/5/13 | 814 | ||||
Pioneer Energy Services Corp., 6.13%, 3/15/22 | 3/4/14 | 400 | ||||
Qualitytech L.P./QTS Finance Corp., 5.88%, 8/1/22 | 7/17/14 | 566 | ||||
Rentech Nitrogen Partners L.P./Rentech Nitrogen Finance Corp., 6.50%, 4/15/21 | 4/9/13 | 290 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 58 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
SECURITY | ACQUISITION AND ENFORCEABLE DATE | ACQUISITION (000s) | ||||
Roche Holdings, Inc., 2.25%, 9/30/19 | 9/22/14 | $1,308 | ||||
SABMiller PLC, 6.50%, 7/1/16 | 12/20/12 | 378 | ||||
Samsung Electronics America, Inc., 1.75%, 4/10/17 | 4/2/12-12/20/12 | 531 | ||||
Sanmina Corp., 4.38%, 6/1/19 | 5/20/14 | 1,000 | ||||
SBA Tower Trust, 2.93%, 12/15/17 | 6/12/14 | 623 | ||||
Smithfield Foods, Inc., 5.25%, 8/1/18 | 7/19/13 | 675 | ||||
Standard Chartered PLC, 1.50%, 9/8/17 | 9/3/14 | 944 | ||||
Suntory Holdings Ltd., 1.65%, 9/29/17 | 9/24/14 | 1,494 | ||||
Ultra Petroleum Corp., 5.75%, 12/15/18 | 6/13/12 | 820 | ||||
Univision Communications, Inc., 6.88%, 5/15/19 | 3/14/13-12/13/13 | 1,084 | ||||
Virgin Media Secured Finance PLC, 5.38%, 4/15/21 | 2/7/13 | 475 | ||||
WEA Finance LLC/Westfield UK & Europe Finance PLC, 1.75%, 9/15/17 | 9/10/14 | 530 | ||||
Wm Wrigley Jr Co., 1.40%, 10/21/16 | 10/16/13 | 814 |
(3) | When-Issued Security. |
(4) | The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury. On September 7, 2008, the Federal Housing Finance Agency (“FHFA”) placed Fannie Mae and Freddie Mac in conservatorship. The United States Treasury has put in place a set of financing agreements to ensure that these entities continue to meet their obligations to holders of bonds that they have issued or guaranteed. |
(5) | At March 31, 2014, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $4,055,000 with net purchases of approximately $16,317,000 during the six months ended September 30, 2014. |
(6) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
(7) | Security pledged as collateral to cover margin requirements for open futures contracts. |
Percentages shown are based on Net Assets.
At September 30, 2014, the Fund had open futures contracts as follows:
TYPE | NUMBER OF CONTRACTS | NOTIONAL AMOUNT (000s) | CONTRACT POSITION | CONTRACT EXP. | UNREALIZED GAINS (LOSSES) (000s) | |||||||||||||||
Two Year U.S. Treasury Note | 163 | $35,672 | Long | 12/14 | $(8) | |||||||||||||||
Five Year U.S. Treasury Note | (260) | 30,747 | Short | 12/14 | 73 | |||||||||||||||
Ten Year U.S. Treasury Note | (53) | 6,606 | Short | 12/14 | 40 | |||||||||||||||
Total | $105 |
At September 30, 2014, the credit quality distribution for the Fund as a percentage of investments including cash was:
QUALITY DISTRIBUTION* | % OF INVESTMENTS | |||
U.S. Treasury | 32.8% | |||
U.S. Agency | 1.5 | |||
AAA | 19.3 | |||
AA | 4.3 | |||
A | 12.7 | |||
BBB | 14.6 | |||
BB | 6.9 | |||
B | 3.7 | |||
CCC | 0.2 | |||
Cash Equivalents | 4.0 | |||
Total | 100.0% |
*Credit quality ratings are based on the conservative average of Moody’s, Standard & Poor’s and Fitch ratings. If ratings from all three rating agencies disagree, the model assigns the middle rating to the security. If two of the three agree, the model assigns the rating from those two to the security. If none of these three rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 59 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SHORT BOND FUND continued | SEPTEMBER 30, 2014 (UNAUDITED) |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Asset-Backed Securities | $– | $102,359 | (1) | $– | $102,359 | |||||||||||
Corporate Bonds | – | 162,253 | (1) | – | 162,253 | |||||||||||
Foreign Issuer Bonds | – | 49,416 | (1) | – | 49,416 | |||||||||||
U.S. Government Agencies | – | 26,431 | (1) | – | 26,431 | |||||||||||
U.S. Government Obligations | – | 144,469 | (1) | – | 144,469 | |||||||||||
Investment Companies | 20,372 | – | – | 20,372 | ||||||||||||
Short-Term Investments | – | 3,298 | – | 3,298 | ||||||||||||
Total Investments | $20,372 | $488,226 | $– | $508,598 | ||||||||||||
OTHER FINANCIAL INSTRUMENTS |
| |||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $113 | $– | $– | $113 | ||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | (8 | ) | – | – | (8 | ) | ||||||||||
Total Other Financial Instruments | $105 | $– | $– | $105 |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 60 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SHORT-INTERMEDIATE U.S. GOVERNMENT FUND | SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 19.0% (1) | ||||||||
Fannie Mae – 0.5% | ||||||||
Pool #555649, | $78 | $89 | ||||||
Pool #893082, | 888 | 957 | ||||||
1,046 | ||||||||
Freddie Mac – 2.4% | ||||||||
Pool #1J0365, | 675 | 726 | ||||||
Pool #1J2840, | 1,359 | 1,460 | ||||||
Pool #1Q0323, | 2,299 | 2,410 | ||||||
Pool #410092, | 13 | 13 | ||||||
4,609 | ||||||||
Government National Mortgage Association – 14.8% |
| |||||||
Series 2011-49, Class A, | 2,101 | 2,123 | ||||||
Series 2012-123, Class A, | 2,824 | 2,593 | ||||||
Series 2013-12, Class KA, | 1,800 | 1,745 | ||||||
Series 2013-142, Class AD, | 2,952 | 2,895 | ||||||
Series 2013-146, Class AK, | 2,531 | 2,528 | ||||||
Series 2013-156, Class AG, | 2,524 | 2,516 | ||||||
Series 2013-17, Class AF, | 2,616 | 2,557 | ||||||
Series 2013-176, Class AD, | 2,258 | 2,255 | ||||||
Series 2013-40, Class AB, | 2,253 | 2,236 | ||||||
Series 2013-45, Class A, | 2,575 | 2,534 | ||||||
Series 2013-92, Class AB, | 4,856 | 4,807 | ||||||
28,789 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 19.0% (1) – continued | ||||||||
Government National Mortgage Association II – 1.3% |
| |||||||
Pool #82581, | $2,497 | $2,624 | ||||||
Total U.S. Government Agencies | ||||||||
(Cost $37,399) | 37,068 | |||||||
U.S. GOVERNMENT OBLIGATIONS – 70.8% | ||||||||
U.S. Treasury Notes – 70.8% | ||||||||
1.25%, 10/31/15 | 20,120 | 20,354 | ||||||
0.50%, 9/30/16 | 27,050 | 27,006 | ||||||
0.63%, 2/15/17 | 8,735 | 8,697 | ||||||
0.63%, 8/31/17 | 28,610 | 28,232 | ||||||
1.00%, 9/15/17 | 22,020 | 21,986 | ||||||
1.38%, 6/30/18 | 6,170 | 6,152 | ||||||
1.50%, 2/28/19 | 5,940 | 5,898 | ||||||
1.00%, 9/30/19 | 6,250 | 6,010 | ||||||
1.75%, 9/30/19 | 13,570 | 13,552 | ||||||
137,887 | ||||||||
Total U.S. Government Obligations | ||||||||
(Cost $138,085) | 137,887 | |||||||
NUMBER OF SHARES | VALUE (000s) | |||||||
INVESTMENT COMPANIES – 0.2% | ||||||||
Northern Institutional Funds - U.S. Government Portfolio, | 381,474 | $381 | ||||||
Total Investment Companies | ||||||||
(Cost $381) | 381 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 61 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SHORT-INTERMEDIATE U.S. GOVERNMENT FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
SHORT-TERM INVESTMENTS – 9.7% | ||||||||
U.S. Treasury Bills, | $15,000 | $14,993 | ||||||
0.12%, 4/2/15 (4) | 4,000 | 3,998 | ||||||
Total Short-Term Investments | ||||||||
(Cost $18,991) | 18,991 | |||||||
Total Investments – 99.7% | ||||||||
(Cost $194,856) | 194,327 | |||||||
Other Assets less Liabilities – 0.3% |
| 515 | ||||||
NET ASSETS – 100.0% | $194,842 |
(1) | The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury. On September 7, 2008, the Federal Housing Finance Agency (“FHFA”) placed Fannie Mae and Freddie Mac in conservatorship. The United States Treasury has put in place a set of financing agreements to ensure that these entities continue to meet their obligations to holders of bonds that they have issued or guaranteed. |
(2) | At March 31, 2014, the value of the Fund’s investment in the U.S. Government Portfolio of the Northern Institutional Funds was approximately $7,142,000 with net sales of approximately $6,761,000 during the six months ended September 30, 2014. |
(3) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
(4) | Security pledged as collateral to cover margin requirements for open futures contracts. |
Percentages shown are based on Net Assets.
At September 30, 2014, the Fund had open futures contracts as follows:
TYPE | NUMBER OF CONTRACTS | NOTIONAL AMOUNT (000s) | CONTRACT POSITION | CONTRACT EXP. | UNREALIZED GAINS (LOSSES) (000s) | |||||||||||||||
2-Year U.S. Treasury Note | 101 | $22,103 | Long | 12/14 | $(5) | |||||||||||||||
5-Year U.S. Treasury Note | 15 | 1,774 | Long | 12/14 | (5) | |||||||||||||||
10-Year U.S. Treasury Note | (22) | 2,742 | Short | 12/14 | 17 | |||||||||||||||
Total | $7 |
At September 30, 2014, the credit quality distribution for the Fund as a percentage of investments including cash was:
QUALITY DISTRIBUTION* | % OF INVESTMENTS | |||
U.S. Treasury | 96.9% | |||
U.S. Agency | 2.9 | |||
Cash Equivalents | 0.2 | |||
Total | 100.0% |
* Credit quality ratings are based on the conservative average of Moody’s, Standard & Poor’s, and Fitch ratings. If ratings from all three rating agencies disagree, the model assigns the middle rating to the security. If two of the three agree, the model assigns the rating from those two to the security. If none of these three rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). U.S. government securities consist of obligations issued or guaranteed by the U.S. Treasury. Agency securities consist of obligations issued or guaranteed by U.S. government agencies and sponsored enterprises. The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuations of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
U.S. Government Agencies | $– | $37,068 | (1) | $– | $37,068 | |||||||||||
U.S. Government Obligations | – | 137,887 | (1) | – | 137,887 | |||||||||||
Investment Companies | 381 | – | – | 381 | ||||||||||||
Short-Term Investments | – | 18,991 | – | 18,991 | ||||||||||||
Total Investments | $381 | $193,946 | $– | $194,327 | ||||||||||||
OTHER FINANCIAL INSTRUMENTS |
| |||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $17 | $– | $– | $17 | ||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | (10 | ) | – | – | (10 | ) | ||||||||||
Total Other Financial Instruments | $7 | $– | $– | $7 |
(1) | Classifications as defined in the Schedule of Investments. |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 62 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 63 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
ASSET-BACKED SECURITIES – 1.3% | ||||||||
Credit Card – 1.3% | ||||||||
Chase Issuance Trust, Series 2013-A8, Class A8, | $20,600 | $20,575 | ||||||
Citibank Credit Card Issuance Trust, Series 2013-A6, Class A6, | 20,000 | 20,134 | ||||||
40,709 | ||||||||
Total Asset-Backed Securities | ||||||||
(Cost $40,596) | 40,709 | |||||||
CORPORATE BONDS – 14.8% | ||||||||
Automobiles Manufacturing – 1.9% | ||||||||
Daimler Finance North America LLC, | 3,000 | 3,016 | ||||||
Ford Motor Credit Co. LLC, | 4,000 | 3,982 | ||||||
1.06%, 3/12/19 | 24,750 | 24,847 | ||||||
Hyundai Capital America, | 6,000 | 6,041 | ||||||
1.45%, 2/6/17 (1) | 3,000 | 2,998 | ||||||
Nissan Motor Acceptance Corp., | 20,000 | 20,027 | ||||||
60,911 | ||||||||
Banks – 1.8% | ||||||||
Bank of America N.A., | 11,000 | 10,971 | ||||||
BB&T Corp., | 5,000 | 5,051 | ||||||
Capital One N.A., | 1,000 | 1,003 | ||||||
1.50%, 9/5/17 | 8,300 | 8,264 | ||||||
HSBC USA, Inc., | 2,000 | 2,015 | ||||||
1.12%, 9/24/18 | 8,000 | 8,157 | ||||||
Manufacturers & Traders Trust Co., | 14,000 | 13,975 | ||||||
SunTrust Bank, | 1,831 | 1,831 | ||||||
US Bancorp, | 5,000 | 5,165 | ||||||
56,432 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 14.8% – continued | ||||||||
Chemicals – 0.3% | ||||||||
Monsanto Co., | $10,000 | $9,932 | ||||||
Commercial Finance – 0.5% | ||||||||
GATX Corp., | 7,000 | 6,949 | ||||||
General Electric Capital Corp., | 10,000 | 10,051 | ||||||
17,000 | ||||||||
Consumer Finance – 1.2% | ||||||||
American Express Credit Corp., | 8,000 | 8,058 | ||||||
0.78%, 3/18/19 | 16,500 | 16,572 | ||||||
Capital One Financial Corp., | 4,100 | 4,133 | ||||||
0.88%, 11/6/15 | 9,500 | 9,544 | ||||||
38,307 | ||||||||
Diversified Banks – 3.3% | ||||||||
Bank of America Corp., | 7,000 | 7,030 | ||||||
1.30%, 3/22/18 | 2,000 | 2,037 | ||||||
1.27%, 1/15/19 | 5,000 | 5,071 | ||||||
1.11%, 4/1/19 | 10,000 | 10,053 | ||||||
Citigroup, Inc., | 2,221 | 2,225 | ||||||
1.30%, 11/15/16 | 6,100 | 6,101 | ||||||
1.00%, 4/8/19 | 18,000 | 18,072 | ||||||
JPMorgan Chase & Co., | 15,500 | 15,582 | ||||||
1.13%, 2/26/16 | 20,000 | 20,082 | ||||||
Wells Fargo & Co., | 6,000 | 6,021 | ||||||
1.16%, 6/26/15 | 10,500 | 10,567 | ||||||
102,841 | ||||||||
Electrical Equipment Manufacturing – 0.1% |
| |||||||
Amphenol Corp., | 3,250 | 3,246 | ||||||
Exploration & Production – 0.3% | ||||||||
Devon Energy Corp., | 10,000 | 10,007 | ||||||
Financial Services – 1.6% | ||||||||
Goldman Sachs Group (The), Inc., | 2,800 | 2,803 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 64 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 14.8% – continued | ||||||||
Financial Services – 1.6% – continued |
| |||||||
1.60%, 11/23/15 | $10,000 | $10,081 | ||||||
1.33%, 11/15/18 | 9,000 | 9,156 | ||||||
Morgan Stanley, | 14,245 | 14,397 | ||||||
1.51%, 4/25/18 | 4,000 | 4,113 | ||||||
1.08%, 1/24/19 | 8,000 | 8,091 | ||||||
48,641 | ||||||||
Food & Beverage – 0.3% |
| |||||||
ConAgra Foods, Inc., | 3,600 | 3,615 | ||||||
Kellogg Co., | 2,000 | 2,009 | ||||||
Kraft Foods Group, Inc., | 2,000 | 2,015 | ||||||
SABMiller Holdings, Inc., | 1,165 | 1,169 | ||||||
8,808 | ||||||||
Hardware – 0.0% |
| |||||||
Hewlett-Packard Co., | 1,000 | 1,004 | ||||||
Health Care Facilities & Services – 0.2% |
| |||||||
Express Scripts Holding Co., | 5,000 | 4,960 | ||||||
Machinery Manufacturing – 0.1% |
| |||||||
Eaton Corp., | 3,000 | 3,009 | ||||||
Metals & Mining – 0.1% |
| |||||||
Glencore Funding LLC, | 3,000 | 3,020 | ||||||
Oil & Gas Services & Equipment – 0.8% |
| |||||||
Cameron International Corp., | 3,000 | 2,998 | ||||||
Halliburton Co., | 20,500 | 20,593 | ||||||
23,591 | ||||||||
Pharmaceuticals – 0.6% |
| |||||||
AbbVie, Inc., | 17,000 | 17,064 | ||||||
Mylan, Inc., | 3,000 | 3,000 | ||||||
20,064 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 14.8% – continued | ||||||||
Pipeline – 0.1% |
| |||||||
Enterprise Products Operating LLC, | $3,300 | $3,316 | ||||||
Railroad – 0.0% |
| |||||||
CSX Corp., | 1,314 | 1,351 | ||||||
Real Estate – 0.5% |
| |||||||
ARC Properties Operating Partnership L.P./Clark Acquisition LLC, | 10,000 | 9,995 | ||||||
WEA Finance LLC/Westfield UK & Europe Finance PLC, | 5,000 | 5,007 | ||||||
15,002 | ||||||||
Retail – Consumer Discretionary – 0.2% |
| |||||||
AutoZone, Inc., | 5,000 | 4,999 | ||||||
Utilities – 0.3% |
| |||||||
Dominion Resources, Inc., | 9,000 | 8,993 | ||||||
Wireless Telecommunications Services – 0.6% |
| |||||||
Verizon Communications, Inc., | 5,660 | 5,809 | ||||||
1.98%, 9/14/18 | 11,623 | 12,244 | ||||||
18,053 | ||||||||
Total Corporate Bonds | ||||||||
(Cost $461,185) | 463,487 |
FOREIGN ISSUER BONDS – 14.0% | ||||||||
Automobiles Manufacturing – 0.1% |
| |||||||
Hyundai Capital Services, Inc., | 4,000 | 4,015 | ||||||
Banks – 7.8% |
| |||||||
Abbey National Treasury Services PLC, | 18,000 | 17,996 | ||||||
1.65%, 9/29/17 | 25,000 | 24,954 | ||||||
ABN AMRO Bank N.V., | 13,000 | 13,085 | ||||||
1.04%, 10/28/16 (1) | 10,000 | 10,090 | ||||||
Australia & New Zealand Banking Group Ltd., | 10,000 | 10,044 | ||||||
Bank of Tokyo-Mitsubishi UFJ (The) Ltd., | 20,000 | 20,040 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 65 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 14.0% – continued | ||||||||
Banks – 7.8% – continued | ||||||||
BPCE S.A., | $10,000 | $10,154 | ||||||
1.63%, 2/10/17 | 3,000 | 3,012 | ||||||
Commonwealth Bank of Australia, | 3,000 | 3,022 | ||||||
Credit Agricole S.A., | 19,500 | 19,720 | ||||||
ING Bank N.V., | 8,500 | 8,627 | ||||||
1.18%, 3/7/16 (1)(2) | 20,000 | 20,195 | ||||||
Macquarie Bank Ltd., | 13,000 | 13,215 | ||||||
1.65%, 3/24/17 (1) | 5,000 | 5,000 | ||||||
National Australia Bank Ltd., | 10,000 | 10,102 | ||||||
Oversea-Chinese Banking Corp. Ltd., | 4,000 | 4,018 | ||||||
Sumitomo Mitsui Banking Corp., | 10,000 | 10,003 | ||||||
UBS A.G., | 22,500 | 22,618 | ||||||
Westpac Banking Corp., | 17,000 | 17,118 | ||||||
243,013 | ||||||||
Diversified Banks – 2.6% | ||||||||
Bank of Nova Scotia (The), | 9,000 | 9,040 | ||||||
BNP Paribas S.A., | 2,613 | 2,628 | ||||||
1.25%, 12/12/16 | 25,000 | 25,050 | ||||||
Credit Agricole S.A., | 10,000 | 10,081 | ||||||
Royal Bank of Canada, | 10,000 | 10,026 | ||||||
Societe Generale S.A., | 24,000 | 24,034 | ||||||
80,859 | ||||||||
Exploration & Production – 0.3% | ||||||||
Sinopec Group Overseas Development 2014 Ltd., | 10,000 | 10,009 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 14.0% – continued | ||||||||
Food & Beverage – 0.5% | ||||||||
Suntory Holdings Ltd., | $15,000 | $15,003 | ||||||
Government Development Banks – 0.3% | ||||||||
Korea Development Bank (The), | 4,000 | 3,993 | ||||||
3.25%, 3/9/16 | 3,800 | 3,914 | ||||||
7,907 | ||||||||
Integrated Oils – 0.9% |
| |||||||
BP Capital Markets PLC, | 5,000 | 5,032 | ||||||
Petrobras Global Finance B.V., | 18,000 | 17,982 | ||||||
3.25%, 3/17/17 | 4,350 | 4,402 | ||||||
Petrobras International Finance Co., | 2,000 | 2,012 | ||||||
29,428 | ||||||||
Machinery Manufacturing – 0.1% |
| |||||||
Pentair Finance S.A., | 4,000 | 4,023 | ||||||
Medical Equipment & Devices Manufacturing – 0.1% |
| |||||||
Covidien International Finance S.A., | 2,700 | 2,712 | ||||||
Metals & Mining – 0.4% | ||||||||
Rio Tinto Finance USA PLC, | 5,500 | 5,520 | ||||||
Xstrata Finance Canada Ltd., | 3,000 | 3,007 | ||||||
2.05%, 10/23/15 (1) | 4,000 | 4,044 | ||||||
12,571 | ||||||||
Pharmaceuticals – 0.7% | ||||||||
Actavis Funding SCS, | 10,000 | 9,813 | ||||||
Takeda Pharmaceutical Co. Ltd., | 13,000 | 13,040 | ||||||
22,853 | ||||||||
Tobacco – 0.1% | ||||||||
BAT International Finance PLC, | 3,000 | 3,014 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 66 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 14.0% – continued | ||||||||
Travel & Lodging – 0.1% | ||||||||
Carnival Corp., | $2,000 | $2,006 | ||||||
Total Foreign Issuer Bonds | ||||||||
(Cost $435,440) | 437,413 | |||||||
U.S. GOVERNMENT OBLIGATIONS – 5.4% | ||||||||
U.S. Treasury Notes – 5.4% | ||||||||
0.50%, 9/30/16 | 80,000 | 79,869 | ||||||
1.00%, 9/15/17 | 90,000 | 89,859 | ||||||
169,728 | ||||||||
Total U.S. Government Obligations | ||||||||
(Cost $169,695) | 169,728 | |||||||
MUNICIPAL BONDS – 60.3% | ||||||||
Alabama – 0.1% | ||||||||
Alabama State G.O. Unlimited Refunding Bonds, Series A, | 3,000 | 3,258 | ||||||
Alaska – 0.0% | ||||||||
Alaska State Housing Finance Corp. Revenue Bonds, Series A, State Capital Project (G.O. of Corp. Insured), | 1,000 | 1,056 | ||||||
Arizona – 0.2% | ||||||||
Arizona School Facilities Board Refunding COPS, Series A-2, | 1,000 | 1,035 | ||||||
Maricopa County High School District No. 210 Phoenix G.O. Limited Refunding Bonds, | 1,850 | 1,937 | ||||||
Navajo County Pollution Control Corp. Revenue Refunding Bonds, | 2,000 | 2,000 | ||||||
4,972 | ||||||||
Arkansas – 0.1% | ||||||||
Arkansas State Federal Highway Grant Anticipation G.O. Unlimited Bonds, 5.00%, 4/1/15 | 2,600 | 2,664 | ||||||
North Little Rock School District No. 1 Construction G.O. Limited Bonds, Series B (State Aid Withholding), | 1,785 | 1,890 | ||||||
4,554 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 60.3% – continued | ||||||||
California – 5.3% | ||||||||
Bay Area Toll Bridge Authority Variable Revenue Bonds, Series A, | $25,000 | $25,091 | ||||||
Beverly Hills Public Financing Authority Lease Revenue Refunding Bonds, Series A, Project of | 2,985 | 3,043 | ||||||
California State Department of Water Supply Resources Revenue Bonds, Series M, | 5,650 | 5,811 | ||||||
California State G.O. Unlimited Refunding Bonds, | 5,000 | 5,082 | ||||||
California State G.O. Unlimited Refunding Bonds, Series B, | 5,635 | 6,140 | ||||||
California State G.O. Unlimited Refunding Bonds, | 1,000 | 1,086 | ||||||
California State Index Floating Rate G.O. Unlimited Bonds, Series D, | 5,000 | 5,049 | ||||||
California State Infrastructure & Economic Development Bank Variable Revenue Refunding Bonds, Series A1, J Paul Getty Trust, | 7,305 | 7,305 | ||||||
California State Infrastructure & Economic Development Bank Various Revenue Refunding Bonds, Series A2, The J Paul Getty Trust, | 13,800 | 13,800 | ||||||
California State Municipal Finance Authority Multi Family Housing Revenue Bonds, Series A, Meadowbrook Housing Partners L.P. (Collateralized by FHLMC Securities), | 8,800 | 8,804 | ||||||
California State Various Purpose G.O. Unlimited Bonds, | 3,000 | 3,134 | ||||||
5.00%, 9/1/16 | 7,435 | 8,102 | ||||||
California State Various Purpose G.O. Unlimited Refunding Bonds, | 10,500 | 11,030 | ||||||
5.00%, 4/1/17 | 4,000 | 4,446 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 67 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 60.3% – continued | ||||||||
California – 5.3% – continued | ||||||||
California Statewide Communities Development Authority Student Housing Revenue Bonds, UCI East Apartments Irvine LLC, Prerefunded, | $4,000 | $4,137 | ||||||
Contra Costa Transportation Authority Sales Tax Revenue Refunding Bonds, | 10,600 | 10,622 | ||||||
Los Angeles Solid Waste Resource Revenue Bonds, Series A, | 700 | 745 | ||||||
Los Angeles Solid Waste Resource Revenue Refunding Bonds, Series B, | 10,000 | 10,637 | ||||||
Los Angeles Wastewater System Revenue Refunding Bonds, Series A (NATL-RE Insured), Prerefunded, | 5,500 | 5,679 | ||||||
Metropolitan Water District of Southern California Revenue Refunding Bonds, Series C, | 3,000 | 3,116 | ||||||
Sacramento Municipal Utility District Electricity Revenue Bonds, Series U (AGM Insured), 3.38%, 8/15/15 | 5,000 | 5,142 | ||||||
San Francisco City & County Public Utilities Commission Revenue Refunding Bonds, Series A, | 3,000 | 3,086 | ||||||
4.00%, 10/1/15 | 2,000 | 2,077 | ||||||
San Francisco City & County Road Repaving & Street Safety G.O. Unlimited Bonds, Series C, | 2,000 | 2,069 | ||||||
University of California General Revenue Bonds, Series AF, | 10,000 | 10,306 | ||||||
165,539 | ||||||||
Colorado – 0.6% | ||||||||
Colorado State Board of Governors University Enterprise System Revenue Refunding Bonds, Series A (State Higher Education Intercept Program), | 2,250 | 2,335 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 60.3% – continued | ||||||||
Colorado – 0.6% – continued | ||||||||
Denver City & County G.O. Unlimited Refunding Bonds, Series A, Better Denver, | $15,000 | $16,278 | ||||||
18,613 | ||||||||
Connecticut – 1.7% | ||||||||
Connecticut State G.O. Unlimited Bonds, Series A, GAAP Conversion, | 2,640 | 2,830 | ||||||
Connecticut State G.O. Unlimited Bonds, Series A, Sifma Index, | 1,000 | 1,001 | ||||||
0.45%, 3/1/18 | 1,000 | 998 | ||||||
Connecticut State G.O. Unlimited Bonds, Series D, Sifma Index, | 1,500 | 1,524 | ||||||
Connecticut State G.O. Unlimited Refunding Bonds, | 4,000 | 4,090 | ||||||
Connecticut State G.O. Unlimited Refunding Bonds, Series C, | 19,500 | 20,693 | ||||||
Connecticut State Health & Educational Facilities Authority Revenue Bonds, Series A, Yale University, | 13,000 | 13,031 | ||||||
Connecticut State SIFMA Index G.O. Unlimited Bonds, Series | 1,500 | 1,495 | ||||||
Connecticut State Special Tax Obligation Transportation Revenue Refunding Bonds, Series B, | 2,760 | 2,783 | ||||||
Connecticut State Variable G.O. Unlimited Bonds, Series D, | 4,000 | 4,005 | ||||||
University of Connecticut Revenue Bonds, Series A, | 2,000 | 2,067 | ||||||
54,517 | ||||||||
Delaware – 0.1% | ||||||||
University of Delaware Variable Revenue Bonds, Series C, | 2,000 | 2,006 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 68 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 60.3% – continued | ||||||||
District of Columbia – 0.6% | ||||||||
District of Columbia Income Tax Secured Revenue Refunding Bonds, Series E, | $16,775 | $16,839 | ||||||
Metropolitan Washington D.C. Airports Authority System Revenue Refunding Bonds, Series A (AMT) (AMBAC Insured), | 3,500 | 3,500 | ||||||
20,339 | ||||||||
Florida – 3.8% | ||||||||
Citizens Property Insurance Corp. Adjustable Personal & Commercial Lines Revenue Bonds, Series | 23,500 | 23,641 | ||||||
Citizens Property Insurance Corp. High Risk Revenue Bonds, Series A1, Senior Secured, | 19,400 | 20,023 | ||||||
5.00%, 6/1/16 | 4,500 | 4,832 | ||||||
Citizens Property Insurance Corp. High Risk Senior Secured Revenue Bonds, Series A-1, | 7,330 | 7,990 | ||||||
5.50%, 6/1/17 | 2,600 | 2,924 | ||||||
Florida State Board of Education G.O. Unlimited Refunding Bonds, Series B (State Gtd.), | 2,000 | 2,025 | ||||||
Florida State Board of Governors University System Improvement Revenue Refunding Bonds, Series A, | 1,000 | 1,037 | ||||||
Florida State Board of Public Education G.O. Unlimited Refunding Bonds, Series C, Capital Outlay, | 4,880 | 5,039 | ||||||
Florida State Housing Finance Corp. Revenue Bonds, Series C, Garden Vista Apartments, | 4,000 | 3,999 | ||||||
Florida State Hurricane Catastrophe Fund Finance Corp. Revenue Bonds, Series A, Escrowed To Maturity, | 3,285 | 3,404 | ||||||
5.00%, 7/1/16 | 1,450 | 1,567 | ||||||
Florida State Turnpike Authority Revenue Bonds, Series B, | 7,500 | 8,103 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 60.3% – continued | ||||||||
Florida – 3.8% – continued | ||||||||
Florida State Turnpike Authority Revenue Refunding Bonds, Series A, Department of Transportation, | $5,000 | $5,402 | ||||||
Florida State Turnpike Authority Revenue Refunding Bonds, Series C, Department of Transportation, | 4,430 | 4,786 | ||||||
Hillsborough County Aviation Authority, Tampa International Airport Revenue Refunding Bonds, Subseries A (AMT), | 2,000 | 2,076 | ||||||
Jacksonville Special Revenue Refunding Bonds, Series C, | 1,000 | 1,048 | ||||||
Jea Electric System Revenue Bonds, Subseries B, | 1,000 | 1,000 | ||||||
5.00%, 10/1/15 | 900 | 944 | ||||||
Jea St. Johns River Power Park System Revenue Refunding Bonds, Issue Two Series 25, | 13,500 | 13,501 | ||||||
Lakeland Energy System Variable Revenue Refunding Bonds, | 1,000 | 1,005 | ||||||
Okeechobee County Solid Waste Disposal Management Landfill Variable Revenue Bonds, Series A, | 1,250 | 1,288 | ||||||
Pasco County School District Sales TRB, | 1,000 | 1,028 | ||||||
3.00%, 10/1/16 | 1,250 | 1,311 | ||||||
117,973 | ||||||||
Georgia – 2.8% | ||||||||
Albany Sales Tax G.O. Unlimited Bonds, | 1,300 | 1,316 | ||||||
Atlanta Airport Revenue Refunding Bonds, Series C (AMT), | 2,000 | 2,095 | ||||||
5.00%, 1/1/17 | 2,500 | 2,749 | ||||||
Atlanta Water & Wastewater Revenue Refunding Bonds, Series B, | 3,000 | 3,156 | ||||||
Burke County Development Authority Revenue Bonds, Georgia Power Co. Plant Vogle Project, | 1,000 | 1,004 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 69 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 60.3% – continued | ||||||||
Georgia – 2.8% – continued | ||||||||
Columbia County School District G.O. Unlimited Bonds (State Aid Withholding), | $1,800 | $1,927 | ||||||
DeKalb County Housing Authority Revenue Bonds, Oak Forest Apartments Project, | 6,240 | 6,240 | ||||||
Floyd County Development Authority Revenue Bonds, Power Company Plant Hammond, | 8,400 | 8,428 | ||||||
Georgia State G.O. Unlimited Bonds, Series B, | 4,000 | 4,001 | ||||||
Georgia State G.O. Unlimited Bonds, Series C-1, | 13,000 | 14,203 | ||||||
Georgia State G.O. Unlimited Bonds, Series H, | 6,000 | 6,598 | ||||||
Gwinnett County School District Sales Tax G.O. Unlimited Bonds, Series A, | 6,500 | 6,501 | ||||||
Henry County School District G.O. Unlimited Bonds (State Aid Withholding), | 1,000 | 1,003 | ||||||
Metropolitan Atlanta Rapid Transit Authority Sales Tax Variable Revenue Bonds, Series A, | 20,500 | 20,499 | ||||||
Metropolitan Atlanta Rapid Transit Authority Sales Variable TRB, Series B, Second Indenture, | 6,000 | 6,000 | ||||||
Municipal Electric Authority of Georgia Revenue Bonds, Series A, Combined Cycle Project, | 1,000 | 1,003 | ||||||
Private Colleges & Universities Authority Revenue Bonds, Series A, Emory University, | 1,390 | 1,443 | ||||||
88,166 | ||||||||
Hawaii – 0.2% | ||||||||
Hawaii State G.O. Unlimited Refunding Bonds, Series EK, | 1,000 | 1,086 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 60.3% – continued | ||||||||
Hawaii – 0.2% – continued | ||||||||
Hawaii State Housing Finance & Development Corp. Multi Family Revenue Bonds, Series A, Halekauwila Place, | $6,000 | $6,002 | ||||||
7,088 | ||||||||
Illinois – 0.3% | ||||||||
Chicago O’Hare International Airport Revenue Refunding Bonds, Series B (AMT), Passenger Facility Charge, | 1,250 | 1,265 | ||||||
Evanston G.O. Unlimited Refunding Bonds, Series B, | 1,920 | 1,959 | ||||||
Illinois State Unemployment Insurance Fund Building Receipts Revenue Bonds, Series A, | 4,700 | 5,071 | ||||||
8,295 | ||||||||
Indiana – 1.0% | ||||||||
Indiana State Health Facility Financing Authority Revenue Bonds, | 19,000 | 18,993 | ||||||
Indiana State Health Facility Financing Authority Revenue Bonds, Series A6, Ascension Health Sub Credit, | 7,500 | 7,502 | ||||||
Indiana State Health Facility Financing Authority Revenue Bonds, Subseries A-3, Ascension Health Credit Group, | 5,000 | 5,444 | ||||||
31,939 | ||||||||
Iowa – 0.1% | ||||||||
Des Moines Waterworks Revenue Refunding Bonds, Series B, | 1,000 | 1,005 | ||||||
Johnston G.O. Unlimited Refunding Bonds, Series A, | 1,225 | 1,256 | ||||||
2,261 | ||||||||
Kansas – 0.2% | ||||||||
Kansas State Department of Transportation Highway Adjustable Revenue Refunding Bonds, Series B-4, Libor Index, | 4,000 | 4,002 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 70 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 60.3% – continued | ||||||||
Kansas – 0.2% – continued | ||||||||
Kansas State Department of Transportation Highway Adjustable Revenue Refunding Bonds, Series B-5, Libor Index, | $3,500 | $3,501 | ||||||
7,503 | ||||||||
Kentucky – 0.1% | ||||||||
Danville City Water & Sewer Revenue Bonds, BANS, | 2,000 | 2,041 | ||||||
Kentucky State Asset Liability Commission General Receipts Revenue Bonds, Series A, University Project Notes (AMBAC Insured), | 2,215 | 2,321 | ||||||
4,362 | ||||||||
Louisiana – 1.3% | ||||||||
Louisiana State G.O. Unlimited Refunding Bonds, Series C, | 1,000 | 1,039 | ||||||
Louisiana State Gas & Fuels Tax Revenue Refunding Bonds, Series A, 2nd Lien, Libor Index, | 19,000 | 18,983 | ||||||
Louisiana State Gas & Fuels Tax Revenue Refunding Bonds, Series B2, Second Lien, | 20,000 | 20,080 | ||||||
40,102 | ||||||||
Maryland – 4.2% | ||||||||
Anne Arundel County Consolidated General Improvements G.O. Limited Bonds, | 3,215 | 3,441 | ||||||
Baltimore County Consolidated Public Improvement G.O. Unlimited Bonds, | 5,500 | 6,077 | ||||||
5.00%, 8/1/17 | 5,425 | 6,097 | ||||||
Baltimore County Consolidated Public Improvement G.O. Unlimited Bonds, Series A, | 13,150 | 14,414 | ||||||
Maryland State & Local Facilities Loan G.O. Unlimited Bonds, First Series A, | 1,000 | 1,013 | ||||||
Maryland State & Local Facilities Loan G.O. Unlimited Bonds, First Series B, | 4,150 | 4,435 | ||||||
5.00%, 3/15/17 | 6,000 | 6,658 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 60.3% – continued | ||||||||
Maryland – 4.2% – continued | ||||||||
Maryland State & Local Facilities Loan of 2013 G.O. Limited Bonds, First Series, | $4,000 | $4,268 | ||||||
Maryland State Department of Transportation Consolidated Revenue Bonds, | 4,855 | 5,104 | ||||||
5.50%, 6/1/17 | 6,200 | 7,012 | ||||||
Maryland State Health & Higher Educational Facilities Authority Revenue Bonds, Series C, (The) Johns Hopkins Health System, | 5,000 | 5,025 | ||||||
Maryland State Health & Higher Educational Facilities Authority Revenue Bonds, Series D, (The) Johns Hopkins Health System, | 5,000 | 5,025 | ||||||
Maryland State Health & Higher Educational Facilities Authority Variable Revenue Bonds, Series A, Johns Hopkins Health System, | 15,100 | 15,102 | ||||||
Maryland State Health & Higher Educational Facilities Authority Variable Revenue Bonds, Series B, Johns Hopkins Health System, | 10,700 | 10,694 | ||||||
Maryland State Housing & Community Development Administration Department Variable Revenue Bonds, Series B, | 1,100 | 1,105 | ||||||
Montgomery County Consolidated Public Improvement G.O. Unlimited Refunding Bonds, Series A, | 4,000 | 4,326 | ||||||
Montgomery County G.O. Unlimited Bonds, Series A, | 12,000 | 13,153 | ||||||
Prince George’s County Consolidated Public Improvement G.O. Limited Refunding Bonds, Series B, | 8,000 | 8,798 | ||||||
University System of Maryland Auxilary Facility & Tuition Revenue Bonds, Series A, | 4,570 | 4,894 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 71 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 60.3% – continued | ||||||||
Maryland – 4.2% – continued | ||||||||
University System of Maryland Auxilary Facility & Tuition Revenue Refunding Bonds, Series B, | $3,500 | $3,693 | ||||||
130,334 | ||||||||
Massachusetts – 3.2% | ||||||||
Cambridge Municipal Purpose Loan G.O. Limited Bonds, | 3,175 | 3,198 | ||||||
Massachusetts Development Finance Agency Revenue Bonds, Series P, TUFTS University, | 4,740 | 4,912 | ||||||
Massachusetts Health & Educational Facilities Authority Revenue Bonds, Series A, University of Massachusetts, | 7,500 | 7,510 | ||||||
Massachusetts Housing Development Finance Agency Revenue Bonds, Colonial Estates, | 9,900 | 9,929 | ||||||
Massachusetts Housing Finance Agency Revenue Bonds, Series E, | 4,500 | 4,514 | ||||||
Massachusetts State Development Finance Agency Variable Revenue Bonds, Series U-1, Boston University, | 8,000 | 8,000 | ||||||
Massachusetts State Development Finance Agency Variable Revenue Bonds, Series U-6E, Boston University, | 5,100 | 5,110 | ||||||
Massachusetts State Development Finance Agency Variable Revenue Bonds, Series M, | 24,370 | 24,370 | ||||||
Massachusetts State Federal Highway Revenue Bonds, Accelerated GANS, Series A, | 1,000 | 1,063 | ||||||
Massachusetts State G.O. Limited Bonds, Series A, | 6,000 | 6,599 | ||||||
Massachusetts State G.O. Limited Refunding Bonds, Series C, | 9,000 | 9,438 | ||||||
Massachusetts State Housing Finance Agency Revenue Bonds, Series A, Construction Loan Notes, | 1,000 | 1,000 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 60.3% – continued | ||||||||
Massachusetts – 3.2% – continued | ||||||||
Massachusetts State Housing Finance Agency Revenue Bonds, Series C, Construction Loan Notes, | $5,000 | $5,017 | ||||||
Massachusetts State Housing Finance Agency Revenue Notes, Series F, Construction Loan Notes (G.O. of Agency Insured), | 2,600 | 2,601 | ||||||
Nantucket G.O. Limited Refunding Bonds, | 1,035 | 1,054 | ||||||
University of Massachusetts Building Authority Revenue Refunding Bonds, Senior Series 2 (AMBAC Insured), | 5,000 | 5,207 | ||||||
99,522 | ||||||||
Michigan – 0.7% | ||||||||
Michigan State Finance Authority Revenue Refunding Bonds, Clean Water Subordinate State Revolving Fund, | 1,650 | 1,730 | ||||||
Michigan State Finance Authority Revenue Refunding Bonds, Drinking Water Subordinate State Revolving Fund, | 2,275 | 2,385 | ||||||
Michigan State G.O. Unlimited Refunding Bonds, | 1,075 | 1,142 | ||||||
Michigan State Strategic Fund Exempt Facilities Adjustable Revenue Bonds (AMT), Waste Management, Inc. Project, | 2,500 | 2,497 | ||||||
Saline Area Schools Variable G.O. Unlimited Refunding Bonds (Q-SBLF Insured), | 12,200 | 12,191 | ||||||
Warren Downtown Development G.O. Limited Tax Refunding Bonds, | 1,000 | 1,028 | ||||||
20,973 | ||||||||
Minnesota – 3.8% | ||||||||
Chaska Independent School District No. 112 G.O. Unlimited Refunding Bonds, Series A (School District Credit Program Insured), | 1,595 | 1,605 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 72 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 60.3% – continued | ||||||||
Minnesota – 3.8% – continued | ||||||||
Metropolitan Council Minneapolis- Saintpaul Metropolitan Area G.O. Unlimited Bonds, Series C, Transit Notes, | $10,205 | $10,894 | ||||||
Metropolitan Council Minneapolis- Saintpaul Metropolitan Area G.O. Unlimited GANS, Series A, | 38,700 | 38,984 | ||||||
Minnesota State Appropriation General Fund Revenue Bonds, Series A, | 1,500 | 1,566 | ||||||
4.00%, 6/1/16 | 2,000 | 2,121 | ||||||
Minnesota State G.O. Unlimited Bonds, Prerefunded, | 7,000 | 7,666 | ||||||
Minnesota State G.O. Unlimited Bonds, Series A, | 13,670 | 14,835 | ||||||
Minnesota State Public Facilities Authority Water PCR Refunding Bonds, Series B, | 22,000 | 24,380 | ||||||
Minnesota State Trunk Highway G.O. Unlimited Bonds, Series B, | 10,000 | 10,852 | ||||||
Moorhead Independent School Building District No. 152 G.O. Unlimited Refunding Bonds, Series A (School District Credit Program Insured), | 2,500 | 2,676 | ||||||
Pipestone County Medical Center Revenue BANS, | 1,100 | 1,098 | ||||||
University of Minnesota Revenue Bonds, Series B, | 1,600 | 1,727 | ||||||
118,404 | ||||||||
Mississippi – 0.1% | ||||||||
Mississippi State Business Finance Corp. Solid Waste Disposal Revenue Bonds, Waste Management, Inc. Project, | 2,250 | 2,250 | ||||||
Municipal States Pooled Securities – 1.0% |
| |||||||
BB&T Municipal Trust Variable Revenue Bonds, Series C (Rabobank Nederland LOC), | 5,298 | 5,298 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 60.3% – continued | ||||||||
Municipal States Pooled Securities – 1.0% – continued |
| |||||||
Nuveen Dividend Advantage Municipal Fund 3 Tax-Exempt Preferreds (AMT), Important Institutional Municipal Fund, | $25,000 | $25,008 | ||||||
30,306 | ||||||||
Nevada – 1.2% | ||||||||
Clark County Airport System Revenue Bonds, Series C1 (AMT), Junior Sub Lien, | 7,750 | 7,880 | ||||||
Clark County Airport System Revenue Refunding Bonds, Series A-1 (AMT), Subordinate Lien, | 2,250 | 2,331 | ||||||
5.00%, 7/1/16 | 3,000 | 3,237 | ||||||
5.00%, 7/1/17 | 4,500 | 5,021 | ||||||
Clark County School District G.O. Limited Refunding Bonds, Series A (AMBAC Insured), | 7,200 | 7,641 | ||||||
Nevada Special Revenue Bonds, Unemployment Compensation Fund, | 6,500 | 7,006 | ||||||
Washoe County School Building District G.O. Limited Refunding Bonds, Series A (NATL-RE Insured), Prerefunded, | 5,355 | 5,530 | ||||||
38,646 | ||||||||
NewJersey – 1.5% | ||||||||
Monmouth County Improvement Authority Revenue Refunding Bonds, Government Pooled Loan (County & Municipal Government Gtd.), | 1,000 | 1,007 | ||||||
New Jersey Building Authority Revenue Refunding Bonds, Series A, | 6,000 | 6,430 | ||||||
New Jersey State EDA Revenue Bonds, Series O, School Facilities Construction, Prerefunded, | 11,240 | 11,481 | ||||||
New Jersey State EDA School Facilities Construction Revenue Notes, Series G, Sifma Index, | 3,000 | 3,000 | ||||||
New Jersey State EDA Solid Waste Facilities Revenue Bonds, Series A (AMT), Disposal Waste Management, | 1,800 | 1,800 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 73 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 60.3% – continued | ||||||||
New Jersey – 1.5% – continued | ||||||||
New Jersey State Housing & Mortgage Finance Agency Conduit Revenue Bonds, Series E, Broadway Townhouses Project, | $2,000 | $2,000 | ||||||
New Jersey State Housing & Mortgage Finance Agency Revenue Bonds, Series 4 (AMT), | 2,860 | 2,861 | ||||||
New Jersey State Transit Corp. Revenue Bonds, Series A, GANS, | 5,000 | 5,416 | ||||||
New Jersey State Transportation Program Trust Fund Authority Revenue Bonds, Series AA (State Appropriation Insured), | 6,000 | 6,153 | ||||||
New Jersey State Transportation System Trust Fund Authority Revenue Bonds, Series A, | 1,550 | 1,616 | ||||||
5.00%, 12/15/15 | 1,435 | 1,514 | ||||||
New Jersey State Turnpike Authority Revenue Bonds, Series D, | 3,200 | 3,213 | ||||||
46,491 | ||||||||
New Mexico – 0.7% | ||||||||
Albuquerque Bernalillo County Water Utility Authority Joint Water & Sewer Revenue Refunding Bonds, Series A, Senior Lien, | 1,200 | 1,343 | ||||||
Albuquerque Bernalillo County Water Utility Authority Joint Water & Sewer Revenue Refunding Bonds, Series B, Subordinate Lien, | 1,110 | 1,160 | ||||||
5.00%, 7/1/17 | 1,200 | 1,341 | ||||||
Las Cruces State Shared Gross Receipts TRB, | 2,165 | 2,353 | ||||||
New Mexico State Municipal Energy Acquisition Authority Gas Supply Variable Revenue Bonds, Subseries B, | 15,000 | 15,101 | ||||||
21,298 | ||||||||
New York – 7.2% | ||||||||
Brookhaven G.O. Limited Bonds, Series A, | 6,565 | 6,957 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 60.3% – continued | ||||||||
New York – 7.2% – continued | ||||||||
Metropolitan Transportation Authority Dedicated Tax Fund Revenue Bonds, Subseries B-2, | $2,000 | $2,005 | ||||||
Metropolitan Transportation Authority Dedicated Tax Fund Revenue Refunding Bonds, Series A, | 1,500 | 1,507 | ||||||
Metropolitan Transportation Authority Revenue Bonds, Series B, | 1,250 | 1,255 | ||||||
Metropolitan Transportation Authority Revenue Bonds, Series B-1, | 3,210 | 3,230 | ||||||
Metropolitan Transportation Authority Revenue Refunding Bonds, Series F, | 24,000 | 24,147 | ||||||
Metropolitan Transportation Authority Revenue Refunding Bonds, Subseries G-4, | 7,000 | 7,078 | ||||||
Metropolitan Transportation Authority Variable Revenue Refunding Bonds, Subseries D2 (AGM Insured), | 9,200 | 9,225 | ||||||
Metropolitan Transportation Various Authority Dedicated Tax Fund Revenue Refunding Bonds, Series 2008A-2A, | 5,000 | 5,000 | ||||||
New York City G.O. Unlimited Bonds, Series E, | 1,220 | 1,323 | ||||||
New York City G.O. Unlimited Bonds, Series B, | 2,000 | 2,048 | ||||||
New York City G.O. Unlimited Bonds, Series H, | 2,500 | 2,539 | ||||||
New York City G.O. Unlimited Refunding Bonds, Series B, | 7,000 | 7,464 | ||||||
New York City Housing Development Corp. MF Housing Revenue Bonds, Series E-1-A, | 2,000 | 2,001 | ||||||
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries B1, | 5,000 | 5,262 | ||||||
5.00%, 11/1/16 | 3,000 | 3,289 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 74 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 60.3% – continued | ||||||||
New York – 7.2% – continued | ||||||||
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries E, | $14,865 | $14,928 | ||||||
New York City Transitional Finance Authority Future TRB, Subseries D, Fiscal 2013, | 5,000 | 5,481 | ||||||
New York Fiscal 2008 G.O. Unlimited | 3,000 | 3,121 | ||||||
New York G.O. Unlimited Bonds, | 7,000 | 7,283 | ||||||
New York G.O. Unlimited Bonds, | 4,875 | 5,203 | ||||||
New York State Dormitory Authority Personal Income Tax General Purpose Revenue Bonds, Series A, | 2,400 | 2,653 | ||||||
New York State Dormitory Authority Personal Income TRB, Series B, | 6,000 | 6,134 | ||||||
New York State Dormitory Authority Personal Income TRB, Series C, Group A, | 23,500 | 24,758 | ||||||
New York State Dormitory Authority Personal Income TRB, Series D, | 8,000 | 8,631 | ||||||
New York State Dormitory Authority Supported Debt Revenue Bonds, Series A, State University Dormitory Facilities, | 1,700 | 1,749 | ||||||
New York State G.O. Unlimited Bonds, Series A, | 10,000 | 10,677 | ||||||
New York State Thruway Authority General Revenue Bonds, Second Series B (NATL Insured), | 10,095 | 10,583 | ||||||
New York State Urban Development Corp. Personal Income TRB, | 1,000 | 1,109 | ||||||
Nuveen AMT-Free Municipal Income Fund Tax-Exempt Preferreds, Important Shares Institutional Municipal Fund, | 15,000 | 15,005 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 60.3% – continued | ||||||||
New York – 7.2% – continued | ||||||||
Port Authority of New York & New Jersey Consolidated Revenue Bonds, Series 169 (AMT) (G.O. of Authority Insured), | $10,000 | $10,020 | ||||||
Suffolk County Water Authority Revenue BANS, Series A, | 11,500 | 12,053 | ||||||
Triborough Bridge & Tunnel Authority Variable Revenue Refunding Bonds, General Subseries B-4, | 3,000 | 3,008 | ||||||
226,726 | ||||||||
North Carolina – 1.2% | ||||||||
Charlotte COPS, Series A, | 3,000 | 3,025 | ||||||
Charlotte G.O. Unlimited Refunding Bonds, Series B, | 2,225 | 2,307 | ||||||
Mecklenburg County COPS, Series A, | 10,000 | 9,964 | ||||||
Mecklenburg County Public Improvement G.O. Unlimited Bonds, Series A, | 3,500 | 3,500 | ||||||
North Carolina State G.O. Unlimited Refunding Bonds, Series C, | 4,000 | 4,079 | ||||||
North Carolina State G.O. Unlimited Refunding Bonds, Series D, | 2,575 | 2,625 | ||||||
North Carolina State G.O. Unlimited Refunding Bonds, Series E, | 2,000 | 2,149 | ||||||
North Carolina State University at Raleigh General Revenue Refunding Bonds, | 1,500 | 1,500 | ||||||
Wake County Public Improvement G.O. Unlimited Bonds, | 5,670 | 6,390 | ||||||
Winston Salem Limited Obligation Revenue Bonds, Series A (County Gtd.), | 1,500 | 1,524 | ||||||
37,063 | ||||||||
Ohio – 2.5% | ||||||||
Columbus City G.O. Unlimited Bonds, Series A, | 17,000 | 17,184 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 75 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 60.3% – continued | ||||||||
Ohio – 2.5% – continued | ||||||||
Columbus City G.O. Unlimited Refunding Bonds, Series 2012-3, | $8,485 | $8,771 | ||||||
Columbus City G.O. Unlimited Refunding Bonds, Series A, | 12,915 | 13,752 | ||||||
Columbus Various Purpose G.O. Unlimited Bonds, Series A, | 12,000 | 12,780 | ||||||
Franklin County Various Purpose G.O. Limited Tax Bonds, | 1,500 | 1,549 | ||||||
Lancaster Port Authority Gas Variable Revenue Refunding Bonds, | 16,000 | 16,064 | ||||||
Ohio State Higher Educational Facility Commission Revenue Bonds, | 2,000 | 1,999 | ||||||
Ohio State Housing Finance Agency Revenue Notes, Maple Park Place Apartments Project, | 2,600 | 2,602 | ||||||
Ohio State Lease Appropriation Revenue Bonds, Series A, Mental Health, | 1,750 | 1,812 | ||||||
Ohio State Water Development Authority Solid Waste Disposal Variable Revenue Bonds, Waste Management Project, | 1,500 | 1,546 | ||||||
Ohio State Water Quality Development Authority PCR Bonds, Series F, Prerefunded, | 1,000 | 1,032 | ||||||
79,091 | ||||||||
Oklahoma – 0.0% | ||||||||
Oklahoma County Independent School District No. 12 Edmond Combined Purpose G.O. Unlimited Bonds, | 700 | 707 | ||||||
Oregon – 0.3% | ||||||||
Gilliam County Solid Waste Management Disposal Variable Revenue Bonds, Series A (AMT), | 5,000 | 5,178 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 60.3% – continued | ||||||||
Oregon – 0.3% – continued | ||||||||
Port of Portland International Airport Revenue Refunding Bonds, Series B (AMT), | $1,550 | $1,606 | ||||||
Portland G.O. Limited TRB, Milwaukie, | 1,350 | 1,397 | ||||||
Portland Public Safety Projects & Emerging G.O. Unlimited Refunding Bonds, Series A, | 1,750 | 1,889 | ||||||
10,070 | ||||||||
Pennsylvania – 1.7% | ||||||||
Pennsylvania State Economic Development Financing Authority Revenue Bonds, Series A, UPMC, | 1,430 | 1,544 | ||||||
Pennsylvania State Economic Development Financing Authority Solid Waste Disposal Revenue Bonds, Waste Management Project, | 3,000 | 3,049 | ||||||
Pennsylvania State Economic Development Financing Authority Unemployment Compensation Revenue Bonds, Series A, | 4,000 | 4,147 | ||||||
Pennsylvania State G.O. Unlimited Bonds, Second Series, | 1,890 | 1,913 | ||||||
5.00%, 10/15/16 | 4,000 | 4,374 | ||||||
Pennsylvania State Housing Finance Agency SFM Revenue Bonds, Series 114A (AMT), | 625 | 626 | ||||||
Pennsylvania State Turnpike Commission Variable Revenue Refunding Bonds, Series B-1, | 13,000 | 13,000 | ||||||
0.63%, 12/1/18 | 12,000 | 12,041 | ||||||
Pennsylvania Turnpike Commission Variable Revenue Bonds, Series B, | 6,000 | 6,000 | ||||||
Philadelphia G.O. Unlimited Bonds, Series A, | 2,070 | 2,148 | ||||||
5.00%, 7/15/16 | 1,000 | 1,080 | ||||||
Philadelphia Water & Wastewater Revenue Refunding Bonds, | 1,500 | 1,618 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 76 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 60.3% – continued | ||||||||
Pennsylvania – 1.7% – continued |
| |||||||
State Public School Building Authority Lease Revenue Bonds, School District of Philadelphia Project (State Intercept Program), | $1,000 | $1,024 | ||||||
52,564 | ||||||||
South Carolina – 0.6% | ||||||||
Lexington & Richland School District No. 5 G.O. Unlimited Bonds, | 3,555 | 3,613 | ||||||
South Carolina State Highway G.O. Unlimited Refunding Bonds, Series A, | 14,000 | 14,858 | ||||||
18,471 | ||||||||
Tennessee – 0.2% | ||||||||
Knoxville G.O. Unlimited Bonds, | 3,245 | 3,318 | ||||||
Memphis Electric System Revenue Refunding Bonds, | 4,325 | 4,753 | ||||||
8,071 | ||||||||
Texas – 7.8% | ||||||||
Austin Public Property Finance Contractual G.O. Limited Bonds, | 1,845 | 1,876 | ||||||
Beckville Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), | 980 | 1,037 | ||||||
Calhoun County Independent School Building District G.O. Unlimited Refunding Bonds (PSF-Gtd.), | 5,315 | 5,509 | ||||||
Dallas County G.O. Limited Tax Notes, | 4,000 | 4,139 | ||||||
Dallas G.O. Limited Refunding Bonds, Series C, Prerefunded, Escrowed to Maturity, | 10 | 10 | ||||||
Dallas G.O. Limited Refunding Bonds, Series C, Unrefunded Balance, | 2,875 | 2,917 | ||||||
Dallas Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), | 3,000 | 3,203 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 60.3% – continued | ||||||||
Texas – 7.8% – continued |
| |||||||
DeSoto Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), | $1,035 | $1,085 | ||||||
Fort Bend Independent School District G.O. Unlimited Refunding Bonds, | 1,000 | 1,012 | ||||||
Grand Parkway Transportation Corp. System Toll Revenue BANS, Series A, | 21,000 | 22,146 | ||||||
Harris County G.O. Limited Refunding Bonds, Series A, | 4,500 | 4,500 | ||||||
Houston Higher Education Finance Corp. Variable Revenue Refunding Bonds, Series B, Rice University, | 38,500 | 38,644 | ||||||
Houston Independent School District Variable G.O. Limited Tax Refunding Bonds (PSF-Gtd.), | 16,100 | 16,181 | ||||||
Houston Independent Schoolhouse District G.O. Limited Tax Bonds, Series B (PSF-Gtd.), | 5,500 | 5,519 | ||||||
Houston Utility System Combined Revenue Refunding Bonds, | 1,500 | 1,645 | ||||||
Lubbock G.O. Limited Refunding Bonds (NATL-RE Insured), | 4,470 | 4,534 | ||||||
North Texas State Municipal Water District Upper Efork Waste Water Intercept Revenue Refunding & Improvement Bonds, | 2,000 | 2,038 | ||||||
North Texas Tollway Authority Variable Revenue Refunding Bonds, | 6,000 | 6,000 | ||||||
Plano Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), | 5,000 | 5,091 | ||||||
5.00%, 2/15/15 | 2,190 | 2,230 | ||||||
Sam Rayburn Municipal Power Agency Revenue Refunding Bonds, | 1,000 | 1,000 | ||||||
San Antonio Electric & Gas System Variable Revenue Refunding Bonds, Series B, Junior Lien, | 1,700 | 1,730 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 77 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 60.3% – continued | ||||||||
Texas – 7.8% – continued |
| |||||||
San Antonio General Improvement G.O. Limited Refunding Bonds, | $2,600 | $2,764 | ||||||
San Antonio General Improvement G.O. Limited Bonds, | 2,000 | 2,026 | ||||||
San Antonio Water System Variable Revenue Refunding Bonds, Junior Lien, | 7,500 | 7,551 | ||||||
San Antonio Water System Variable Revenue Refunding Bonds, Series B, Junior Lien, | 21,500 | 21,626 | ||||||
Texas State Highway Improvement G.O. Unlimited Bonds, Series B, | 1,500 | 1,607 | ||||||
Texas State PFA G.O. Unlimited Refunding Bonds, Series A, | 14,000 | 14,751 | ||||||
Texas State PFA Revenue Refunding Bonds, Series A, Assessment Unemployment Compensation, | 7,000 | 7,710 | ||||||
Texas State Transportation Commission Highway Fund Floating Revenue Bonds, Series B, First Tier, | 43,000 | 43,113 | ||||||
University of Texas Financing System Revenue Bonds, Series B, Prerefunded, | 9,130 | 9,927 | ||||||
243,121 | ||||||||
Utah – 0.4% | ||||||||
Davis County School District G.O. Unlimited Refunding Bonds, Series C (School Board Guaranty Program), | 6,965 | 7,143 | ||||||
Intermountain Power Agency Power Supply Revenue Refunding Bonds, Subseries A, | 4,000 | 4,087 | ||||||
11,230 | ||||||||
Virginia – 1.3% | ||||||||
Loudoun County Public Improvement G.O. Unlimited Bonds, Series A (State Aid Withholding), | 2,000 | 2,017 | ||||||
Norfolk Capital Improvement G.O. Unlimited Bonds, Series C, | 1,405 | 1,504 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 60.3% – continued | ||||||||
Virginia – 1.3% – continued |
| |||||||
Tobacco Settlement Financing Corp. Asset-Backed Revenue Bonds, Prerefunded, | $2,550 | $2,643 | ||||||
Virginia State College Building Authority Educational Facilities Revenue Bonds, Series 2, Public Higher Educational Financing Authority (State Intercept Program), | 3,105 | 3,243 | ||||||
Virginia State College Building Authority Educational Facilities Revenue Bonds, Series A, 21st Century College & Equipment, | 7,000 | 7,115 | ||||||
Virginia State College Building Authority Educational Facilities Revenue Refunding Bonds, Series A, 21st Century College (State Intercept Program), | 4,725 | 5,216 | ||||||
Virginia State College Building Authority Educational Facilities Revenue Refunding Bonds, Series B, Public Higher Educational Financing Program (State Intercept Program), | 1,000 | 1,044 | ||||||
Virginia State Housing Development Authority Commonwealth Mortgage Revenue Bonds, Subseries A-2 (AMT) (G.O. of Authority Insured), | 4,000 | 4,011 | ||||||
4.40%, 4/1/16 | 3,200 | 3,259 | ||||||
Virginia State Public School Authority Revenue Bonds, | 8,035 | 8,246 | ||||||
Virginia State Public School Authority Special Obligation Prince William Revenue Bonds (State Aid Withholding), | 3,285 | 3,412 | ||||||
41,710 | ||||||||
Washington – 1.8% | ||||||||
Central Puget Sound Regional Transportation Authority Revenue Refunding Bonds, Series P-1, | 1,500 | 1,657 | ||||||
Pierce County School District No. 10 Tacoma G.O. Unlimited BANS, | 20,000 | 20,062 | ||||||
Tacoma Electric System Revenue Refunding Bonds, Series A, | 1,750 | 1,853 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 78 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 60.3% – continued | ||||||||
Washington – 1.8% – continued |
| |||||||
Washington State G.O. Unlimited Bonds, Series E, | $5,320 | $5,407 | ||||||
5.00%, 2/1/16 | 5,000 | 5,316 | ||||||
Washington State G.O. Unlimited Refunding Bonds, Series R-2013A, | 5,000 | 5,409 | ||||||
Washington State Local Agency Personal Property COPS, Series A, 5.00%, 7/1/16 | 3,765 | 4,068 | ||||||
Washington State Motor Fuel Tax G.O. Unlimited Bonds, Series E, | 4,500 | 4,968 | ||||||
Washington State Motor Vehicle Fuel Tax G.O. Unlimited Bonds, Series B (AGM Insured), Prerefunded, | 5,010 | 5,193 | ||||||
Washington State Motor Vehicle Fuel Tax G.O. Unlimited Refunding Bonds, | 2,500 | 2,592 | ||||||
56,525 | ||||||||
West Virginia – 0.1% | ||||||||
Marshall County Board of Education Public School G.O. Unlimited Bonds (NATL-RE Insured), | 1,000 | 1,025 | ||||||
West Virginia State Housing Finance Development Fund Revenue Bonds, Series A (AMT), | 1,290 | 1,287 | ||||||
2,312 | ||||||||
Wisconsin – 0.3% | ||||||||
Madison G.O. Unlimited Promissory Notes, Series A, | 4,300 | 4,301 | ||||||
Northeast Wisconsin Technical College District G.O. Unlimited Promissory Notes, Series B, | 1,100 | 1,110 | ||||||
Wisconsin State Health & Educational Facilities Authority Variable Revenue Bonds, Series B-1, Aurora Health Care Services, | 2,700 | 2,718 | ||||||
8,129 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 60.3% – continued | ||||||||
Wyoming – 0.0% |
| |||||||
Wyoming State Community Development Authority Housing Revenue Bonds, Series 1 (AMT), | $670 | $684 | ||||||
Total Municipal Bonds | ||||||||
(Cost $1,883,525) | 1,887,241 |
NUMBER OF SHARES | VALUE (000s) | |||||||
INVESTMENT COMPANIES – 0.6% | ||||||||
Northern Institutional Funds - Tax-Exempt Portfolio, | 18,479,696 | $18,480 | ||||||
Total Investment Companies | ||||||||
(Cost $18,480) | 18,480 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
SHORT-TERM INVESTMENTS – 3.6% | ||||||||
California State Floating G.O. Unlimited Refunding Bonds, Series A, | $2,500 | $2,506 | ||||||
California State Infrastructure & Economic Development Bank Variable Revenue Refunding Bonds, Series B2, J Paul Getty Trust, | 10,800 | 10,801 | ||||||
California State Pollution Control Financing Authority Solid Waste Disposal Refunding VRDB, Series A (AMT), Republic Services, | 8,000 | 8,000 | ||||||
California State Pollution Control Financing Authority Solid Waste Disposal VRDB, Series A (AMT), Waste Management Project, | 1,500 | 1,500 | ||||||
California State School Cash Reserve Program Authority Revenue Notes, Series O, | 3,000 | 3,013 | ||||||
Charles City & County IDA Solid Waste Disposal Facility Adjustable VRDB (AMT), Waste Management, Inc. Project, | 750 | 756 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 79 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
SHORT-TERM INVESTMENTS – 3.6% – continued | ||||||||
Citizens Property Insurance Corp. High Risk Account Senior Secured Revenue Refunding Bonds, Series A (NATL-RE Insured), | $2,220 | $2,265 | ||||||
Connecticut State Development Authority PCR VRDB, | 14,615 | 14,695 | ||||||
Connecticut State Health & Educational Facilities Authority VRDB, | 6,810 | 6,932 | ||||||
Houston Independent School District House G.O. Limited Tax VRDB, Series B (PSF-Gtd.), | 10,000 | 10,082 | ||||||
Houston Independent School District Variable G.O. Limited VRDB, | 8,000 | 8,032 | ||||||
Houston Utility System Revenue Refunding Bond, Series A, Sifma Index, | 2,000 | 2,002 | ||||||
Illinois Sports Facilities Authority, | 2,970 | 3,021 | ||||||
Indiana State Finance Authority Economic Development VRDB (AMT), Republic Services, Inc. Project, | 4,000 | 4,000 | ||||||
Kentucky State Economic Development Finance Authority Solid Waste Disposal Refunding VRDB, Series B, Republic Services, Inc. Project, | 5,500 | 5,500 | ||||||
Louisa IDA PCR VRDB, Series C, Virginia Electric & Power Co. Project, | 2,000 | 2,002 | ||||||
Lowell Limited Obligation Industrial Various Revenue Bonds (AMT), Litehouse, Inc. Project (Fifth Third Bank LOC), | 955 | 955 | ||||||
Metropolitan Transportation Authority Dedicated Tax Fund Floating Revenue Refunding Bonds, Subseries B-3A, | 3,600 | 3,599 | ||||||
Michigan State Hospital Finance Authority VRDB, Ascension Health Care Group, | 3,815 | 3,825 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
SHORT-TERM INVESTMENTS – 3.6% – continued | ||||||||
Mississippi State Business Finance Corp. Solid Waste Disposal VRDB, Waste Management, Inc. Project, | $4,700 | $4,707 | ||||||
New York City Trust for Cultural Resources Revenue Bonds, Julliard School, | 3,500 | 3,551 | ||||||
Pennsylvania State Economic Development Financing Authority Solid Waste Disposal VRDB, Series A, Waste Management Project, | 1,500 | 1,531 | ||||||
Washington County Wastewater Solid Waste Disposal Facilities Variable Refunding VRDB (AMT), Cargill, Inc. Projects, | 5,830 | 5,869 | ||||||
Yavapai County IDA Solid Waste Disposal VRDB, Series A (AMT), Waste Management, Inc. Project, | 1,250 | 1,250 | ||||||
Total Short-Term Investments | ||||||||
(Cost $110,220) | 110,394 | |||||||
Total Investments – 100.0% | ||||||||
(Cost $3,119,141) | 3,127,452 | |||||||
Other Assets less Liabilities – 0.0% | 1,196 | |||||||
NET ASSETS – 100.0% | $3,128,648 |
(1) | 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. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Trustees of Northern Funds. |
(2) | Restricted security that has been deemed illiquid. At September 30, 2014, the value of these restricted illiquid securities amounted to approximately $160,525,000 or 5.1% of net assets. Additional information on each restricted illiquid security is as follows: |
SECURITY | ACQUISITION AND ENFORCEABLE DATE | ACQUISITION (000s) | ||||
ABN AMRO Bank N.V., 1.38%, 1/22/16 | 1/17/13 | $12,997 | ||||
Bank of Tokyo-Mitsubishi UFJ (The) Ltd., 1.00%, 2/26/16 | 2/19/13 | 19,987 | ||||
Credit Agricole S.A., 1.39%, 4/15/16 | 4/10/13 | 19,500 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 80 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
SECURITY | ACQUISITION AND ENFORCEABLE DATE | ACQUISITION (000s) | ||||
Daimler Finance North America LLC, 2.30%, 1/9/15 | 1/5/12 | $2,996 | ||||
Glencore Funding LLC, 1.70%, 5/27/16 | 5/22/13 | 2,999 | ||||
ING Bank N.V., 1.18%, 3/7/16 | 2/28/13 | 20,000 | ||||
Macquarie Bank Ltd., 2.00%, 8/15/16 | 8/7/13 | 12,995 | ||||
Nissan Motor Acceptance Corp., 1.00%, 3/15/16 | 3/11/13 | 19,968 | ||||
Nuveen AMT-Free Municipal Income Fund Tax-Exempt Preferreds, Important Shares Institutional Municipal Fund, 0.65%, 10/1/17 | 3/27/14 | 15,000 | ||||
Nuveen Dividend Advantage Municipal Fund 3 Tax-Exempt Preferreds (AMT), Important Institutional Municipal Fund, 0.78%, 10/1/17 | 3/27/14 | 25,000 | ||||
Oversea-Chinese Banking Corp. Ltd., 1.63%, 3/13/15 | 3/6/12 | 3,992 | ||||
SABMiller Holdings, Inc., 1.85%, 1/15/15 | 1/11/12 | 1,165 | ||||
Xstrata Finance Canada Ltd., 2.85%, 11/10/14 | 11/3/11 | 2,997 |
(3) | When-Issued Security. |
(4) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
(5) | At March 31, 2014, the value of the Fund’s investment in the Tax-Exempt Portfolio of the Northern Institutional Funds was approximately $83,141,000 with net sales of approximately $64,661,000 during the six months ended September 30, 2014. |
Percentages shown are based on Net Assets.
At September 30, 2014, the credit quality distribution for the Fund as a percentage of investments including cash was:
QUALITY DISTRIBUTION* | % OF INVESTMENTS | |||
U.S. Treasury | 5.4% | |||
AAA | 20.2 | |||
AA | 33.3 | |||
A | 31.3 | |||
BBB | 7.6 | |||
A2 (Short Term) | 0.1 | |||
Not rated | 1.5 | |||
Cash Equivalents | 0.6 | |||
Total | 100.0% |
* Credit quality ratings are based on the available Moody’s, Standard & Poor’s, and/or Fitch ratings. When ratings from all three agencies are available, the median rating is used. When ratings are available from two of the agencies, the lower rating is used. If none of these three rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). The Standard & Poor’s short-term municipal rating of SP1 reflects a strong capacity to pay principal and interest (an issue determined to possess a very strong capacity to pay debt service is given a plus (+) designation). The Moody’s short-term municipal rating of MIG1 denotes superior credit quality (excellent protection is afforded by established cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for refinancing). The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuations of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Asset-Backed Securities | $– | $40,709 | (1) | $– | $40,709 | |||||||||||
Corporate Bonds | – | 463,487 | (1) | – | 463,487 | |||||||||||
Foreign Issuer Bonds | – | 437,413 | (1) | – | 437,413 | |||||||||||
U.S. Government Obligations | – | 169,728 | (1) | – | 169,728 | |||||||||||
Municipal Bonds | – | 1,887,241 | (1) | – | 1,887,241 | |||||||||||
Investment Companies | 18,480 | – | – | 18,480 | ||||||||||||
Short-Term Investments | – | 110,394 | – | 110,394 | ||||||||||||
Total Investments | $18,480 | $3,108,972 | $– | $3,127,452 |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 81 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
ULTRA-SHORT FIXED INCOME FUND
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
ASSET-BACKED SECURITIES – 8.9% | ||||||||
Auto Floor Plan – 0.5% | ||||||||
Ford Credit Floorplan Master Owner Trust, Series 2013-3, Class A1, | $2,400 | $2,405 | ||||||
Ford Credit Floorplan Master Owner Trust, Series 2013-5, Class A2, | 3,000 | 3,008 | ||||||
Ford Credit Floorplan Master Owner Trust, Series 2014-1, Class A1, | 2,000 | 1,993 | ||||||
GE Dealer Floorplan Master Note Trust, Series 2012-4, Class A, | 2,000 | 2,003 | ||||||
9,409 | ||||||||
Automobile – 2.5% | ||||||||
Ally Auto Receivables Trust of Lease, Series 2014-SN1, Class A2A, | 2,430 | 2,429 | ||||||
Ally Auto Receivables Trust, Series 2013-1, Class A2, | 13 | 13 | ||||||
Ally Auto Receivables Trust, Series 2013-2, Class A2A, | 1,967 | 1,968 | ||||||
AmeriCredit Automobile Receivables, Series 2014-3, Class A2B, | 4,000 | 4,000 | ||||||
ARI Fleet Lease Trust, Series 2013-A, Class A2, | 1,652 | 1,653 | ||||||
ARI Fleet Lease Trust, Series 2014-A, Class A2, | 5,000 | 5,003 | ||||||
CarMax Auto Owner Trust, | 101 | 102 | ||||||
CarMax Auto Owner Trust, | 2,202 | 2,203 | ||||||
CarMax Auto Owner Trust, | 5,000 | 5,000 | ||||||
Enterprise Fleet Financing LLC, | 1,901 | 1,902 | ||||||
Enterprise Fleet Financing LLC, | 2,582 | 2,590 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
ASSET-BACKED SECURITIES – 8.9% – continued | ||||||||
Automobile – 2.5% – continued | ||||||||
Ford Credit Auto Lease Trust, | $762 | $763 | ||||||
Hyundai Auto Lease Securitization Trust, Series 2013-A, Class A2, | 25 | 25 | ||||||
Hyundai Auto Lease Securitization Trust, Series 2013-B, Class A2, | 5,071 | 5,079 | ||||||
Hyundai Auto Lease Securitization Trust, Series 2014-A, Class A2, | 1,000 | 1,000 | ||||||
Hyundai Auto Lease Securitization Trust, Series 2014-B, Class A2, | 2,000 | 2,001 | ||||||
Hyundai Auto Receivables Trust, Series 2013-A, Class A2, | 155 | 155 | ||||||
M&T Bank Auto Receivables Trust, Series 2013-1A, Class A2, | 1,038 | 1,038 | ||||||
Mercedes-Benz Auto Lease Trust, Series 2013-A, Class A2, | 288 | 288 | ||||||
Mercedes-Benz Auto Lease Trust, Series 2013-B, Class A3, | 3,000 | 3,002 | ||||||
Santander Drive Auto Receivables Trust, Series 2014-3, Class A2A, | 1,800 | 1,800 | ||||||
42,014 | ||||||||
Credit Card – 4.8% | ||||||||
American Express Credit Account Master Trust, Series 2012-5, Class A, | 4,400 | 4,402 | ||||||
American Express Credit Account Master Trust, Series 2013-1, Class A, | 3,000 | 3,009 | ||||||
Capital One Multi-Asset Execution Trust, Series 2013-A3, Class A3, | 3,500 | 3,490 | ||||||
Chase Issuance Trust, Series 2012-A3, Class A3, | 2,000 | 2,005 | ||||||
Chase Issuance Trust, Series 2012-A5, Class A5, | 2,000 | 2,002 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 82 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
ASSET-BACKED SECURITIES – 8.9% – continued | ||||||||
Credit Card – 4.8% – continued | ||||||||
Chase Issuance Trust, Series 2012-A8, Class A8, | $5,000 | $4,999 | ||||||
Chase Issuance Trust, Series 2013-A6, Class A6, | 5,000 | 5,021 | ||||||
Chase Issuance Trust, Series 2013-A8, Class A8, | 2,000 | 1,998 | ||||||
Chase Issuance Trust, Series 2014-A1, Class A1, | 2,000 | 1,998 | ||||||
Citibank Credit Card Issuance Trust, Series 2013-A3, Class A3, | 5,000 | 5,016 | ||||||
Citibank Credit Card Issuance Trust, Series 2013-A6, Class A6, | 10,000 | 10,067 | ||||||
Citibank Credit Card Issuance Trust, Series 2014-A2, Class A2, | 5,000 | 4,979 | ||||||
Citibank Credit Card Issuance Trust, Series 2014-A4, Class A4, | 5,000 | 4,989 | ||||||
Discover Card Execution Note Trust, Series 2014-A1, Class A, | 5,000 | 5,009 | ||||||
Discover Card Execution Note Trust, Series 2014-A3, Class A3, | 3,000 | 2,994 | ||||||
Dryrock Issuance Trust, Series 2012-1, Class A, | 4,500 | 4,499 | ||||||
First National Master Note Trust, Series 2013-2, Class A, | 2,500 | 2,507 | ||||||
GE Capital Credit Card Master Note Trust, Series 2012-4, Class A, | 2,000 | 2,000 | ||||||
Golden Credit Card Trust, | 3,000 | 3,006 | ||||||
Golden Credit Card Trust, | 4,000 | 4,001 | ||||||
Master Credit Card Trust II, Series 2013-3A, Class A, | 3,000 | 3,006 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
ASSET-BACKED SECURITIES – 8.9% – continued | ||||||||
Credit Card – 4.8% – continued | ||||||||
World Financial Network Credit Card Master Trust, Series 2013-B, Class A, | $1,000 | $999 | ||||||
81,996 | ||||||||
Other – 1.1% | ||||||||
GE Dealer Floorplan Master Note Trust, Series 2013-1, Class A, | 4,500 | 4,513 | ||||||
GE Dealer Floorplan Master Note Trust, Series 2014-1, Class A, | 5,000 | 5,002 | ||||||
GE Equipment Midticket LLC, Series 2012-1, Class A3, | 1,496 | 1,497 | ||||||
GE Equipment Small Ticket LLC, Series 2013-1A, Class A2, | 1,275 | 1,277 | ||||||
GE Equipment Small Ticket LLC, Series 2014-1, Class A2, | 4,000 | 4,004 | ||||||
GE Equipment Transportation LLC, Series 2013-1, Class A2, | 334 | 334 | ||||||
John Deere Owner Trust, | 152 | 152 | ||||||
Volvo Financial Equipment LLC, Series 2013-1A, Class A2, | 827 | 827 | ||||||
Volvo Financial Equipment LLC, Series 2014-1A, Class A2, | 1,500 | 1,500 | ||||||
19,106 | ||||||||
Total Asset-Backed Securities | ||||||||
(Cost $152,365) | 152,525 | |||||||
CORPORATE BONDS – 49.3% | ||||||||
Automobiles Manufacturing – 4.9% | ||||||||
American Honda Finance Corp., | 2,000 | 2,008 | ||||||
1.00%, 8/11/15 (1)(2) | 6,000 | 6,032 | ||||||
0.61%, 5/26/16 (1)(2) | 2,400 | 2,411 | ||||||
1.13%, 10/7/16 | 6,000 | 6,021 | ||||||
Daimler Finance North America LLC, | 735 | 736 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 83 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
ULTRA-SHORT FIXED INCOME FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 49.3% – continued | ||||||||
Automobiles Manufacturing – 4.9% – continued |
| |||||||
1.65%, 4/10/15 (1)(2) | $1,795 | $1,806 | ||||||
1.30%, 7/31/15 (1)(2) | 3,465 | 3,486 | ||||||
1.25%, 1/11/16 (1)(2) | 1,250 | 1,258 | ||||||
1.10%, 8/1/18 (1)(2) | 5,000 | 5,083 | ||||||
Ford Motor Credit Co. LLC, | 2,000 | 1,991 | ||||||
1.06%, 3/12/19 | 15,000 | 15,059 | ||||||
Harley-Davidson Financial Services, Inc., | 3,000 | 3,015 | ||||||
Harley-Davidson Funding Corp., | 2,786 | 2,816 | ||||||
Hyundai Capital America, | 2,000 | 2,014 | ||||||
1.88%, 8/9/16 (1)(2) | 5,000 | 5,062 | ||||||
Nissan Motor Acceptance Corp., | 1,000 | 1,001 | ||||||
0.78%, 3/3/17 (1) | 10,000 | 10,034 | ||||||
Toyota Motor Credit Corp., | 4,000 | 4,014 | ||||||
0.80%, 5/17/16 | 6,250 | 6,265 | ||||||
Volkswagen Group of America Finance LLC, | 4,000 | 4,004 | ||||||
84,116 | ||||||||
Banks – 3.3% | ||||||||
Bank of America N.A., | 4,700 | 4,688 | ||||||
1.25%, 2/14/17 | 3,000 | 2,991 | ||||||
BB&T Corp., | 2,000 | 2,035 | ||||||
Capital One N.A., | 2,000 | 2,005 | ||||||
1.50%, 9/5/17 | 4,100 | 4,082 | ||||||
Fifth Third Bank, | 5,000 | 5,013 | ||||||
HSBC USA, Inc., | 5,000 | 5,038 | ||||||
1.12%, 9/24/18 | 3,000 | 3,059 | ||||||
Manufacturers & Traders Trust Co., | 10,000 | 9,982 | ||||||
SunTrust Bank, | 5,000 | 4,999 | ||||||
US Bancorp, | 7,100 | 7,335 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 49.3% – continued | ||||||||
Banks – 3.3% – continued | ||||||||
US Bank N.A., | $6,000 | $5,992 | ||||||
57,219 | ||||||||
Biotechnology – 0.7% | ||||||||
Amgen, Inc., | 3,500 | 3,506 | ||||||
0.83%, 5/22/19 | 1,965 | 1,976 | ||||||
Gilead Sciences, Inc., | 7,000 | 7,025 | ||||||
12,507 | ||||||||
Cable & Satellite – 1.1% | ||||||||
Comcast Corp., | 1,645 | 1,673 | ||||||
DIRECTV Holdings LLC/DIRECTV Financing Co., Inc., | 5,000 | 5,145 | ||||||
3.50%, 3/1/16 | 7,000 | 7,244 | ||||||
2.40%, 3/15/17 | 4,000 | 4,090 | ||||||
18,152 | ||||||||
Chemicals – 0.3% | ||||||||
Monsanto Co., | 5,000 | 4,966 | ||||||
Commercial Finance – 1.3% | ||||||||
GATX Corp., | 6,000 | 5,956 | ||||||
General Electric Capital Corp., | 2,000 | 2,010 | ||||||
0.83%, 1/8/16 | 1,250 | 1,257 | ||||||
1.00%, 1/8/16 | 1,700 | 1,707 | ||||||
0.88%, 7/12/16 | 5,000 | 5,043 | ||||||
0.95%, 4/2/18 | 3,991 | 4,037 | ||||||
0.74%, 1/14/19 | 3,100 | 3,121 | ||||||
23,131 | ||||||||
Communications Equipment – 3.7% | ||||||||
Apple, Inc., | 16,000 | 15,946 | ||||||
0.54%, 5/6/19 | 16,000 | 16,014 | ||||||
Cisco Systems, Inc., | 16,400 | 16,389 | ||||||
0.73%, 3/1/19 | 15,000 | 15,111 | ||||||
63,460 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 84 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 49.3% – continued | ||||||||
Consumer Finance – 0.8% |
| |||||||
American Express Credit Corp., | $1,412 | $1,425 | ||||||
Capital One Bank USA N.A., | 3,500 | 3,481 | ||||||
Capital One Financial Corp., | ||||||||
2.15%, 3/23/15 | 2,072 | 2,089 | ||||||
1.00%, 11/6/15 | 3,000 | 3,008 | ||||||
Synchrony Financial, | 3,500 | 3,505 | ||||||
13,508 | ||||||||
Consumer Products – 0.5% | ||||||||
Unilever Capital Corp., | 8,500 | 8,508 | ||||||
Diversified Banks – 2.7% | ||||||||
Bank of America Corp., | ||||||||
1.25%, 1/11/16 | 3,000 | 3,013 | ||||||
1.30%, 3/22/18 | 6,000 | 6,111 | ||||||
1.27%, 1/15/19 | 3,000 | 3,043 | ||||||
1.11%, 4/1/19 | 5,000 | 5,026 | ||||||
Citigroup, Inc., | ||||||||
5.50%, 10/15/14 | 445 | 446 | ||||||
1.03%, 4/1/16 | 5,000 | 5,036 | ||||||
1.00%, 4/8/19 | 5,000 | 5,020 | ||||||
JPMorgan Chase & Co., | ||||||||
0.89%, 10/15/15 | 3,500 | 3,519 | ||||||
0.85%, 2/26/16 | 4,250 | 4,275 | ||||||
1.13%, 2/26/16 | 3,000 | 3,012 | ||||||
0.75%, 2/15/17 | 2,000 | 2,009 | ||||||
0.87%, 1/28/19 | 4,000 | 4,029 | ||||||
Wells Fargo & Co., | 2,000 | 1,999 | ||||||
46,538 | ||||||||
Electrical Equipment Manufacturing – 0.5% |
| |||||||
Amphenol Corp., | 5,000 | 4,994 | ||||||
General Electric Co., | 4,000 | 4,017 | ||||||
9,011 | ||||||||
Entertainment Content – 0.6% |
| |||||||
Viacom, Inc., | 3,000 | 3,010 | ||||||
Walt Disney (The) Co., | 6,400 | 6,396 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 49.3% – continued | ||||||||
Entertainment Content – 0.6% – continued |
| |||||||
1.13%, 2/15/17 | $1,017 | $1,018 | ||||||
10,424 | ||||||||
Exploration & Production – 0.8% |
| |||||||
Devon Energy Corp., | 12,500 | 12,509 | ||||||
Marathon Oil Corp., | 1,500 | 1,501 | ||||||
14,010 | ||||||||
Financial Services – 1.7% |
| |||||||
Charles Schwab (The) Corp., | 4,000 | 4,013 | ||||||
Goldman Sachs Group (The), Inc., | ||||||||
5.13%, 1/15/15 | 2,000 | 2,027 | ||||||
1.33%, 11/15/18 | 7,000 | 7,121 | ||||||
Morgan Stanley, | ||||||||
1.48%, 2/25/16 | 5,000 | 5,068 | ||||||
1.51%, 4/25/18 | 1,000 | 1,028 | ||||||
1.08%, 1/24/19 | 4,000 | 4,046 | ||||||
0.97%, 7/23/19 | 5,000 | 5,007 | ||||||
28,310 | ||||||||
Food & Beverage – 2.6% |
| |||||||
Anheuser-Busch Cos. LLC, | 1,000 | 1,013 | ||||||
Anheuser-Busch InBev Worldwide, Inc., | 5,640 | 5,657 | ||||||
ConAgra Foods, Inc., | 2,000 | 2,008 | ||||||
General Mills, Inc., | 1,000 | 1,001 | ||||||
Kellogg Co., | 2,000 | 2,009 | ||||||
Kraft Foods Group, Inc., | 2,000 | 2,015 | ||||||
PepsiCo, Inc., | ||||||||
0.75%, 3/5/15 | 8,000 | 8,014 | ||||||
0.95%, 2/22/17 | 2,000 | 1,992 | ||||||
SABMiller Holdings, Inc., | ||||||||
1.85%, 1/15/15 (1)(2) | 2,000 | 2,008 | ||||||
2.45%, 1/15/17 (1)(2) | 2,600 | 2,656 | ||||||
0.93%, 8/1/18 (1) | 8,625 | 8,690 | ||||||
WM Wrigley Jr Co., | 7,000 | 7,035 | ||||||
44,098 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 85 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
ULTRA-SHORT FIXED INCOME FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 49.3% – continued | ||||||||
Health Care Facilities & Services – 0.9% |
| |||||||
Express Scripts Holding Co., | ||||||||
2.10%, 2/12/15 | $3,000 | $3,017 | ||||||
1.25%, 6/2/17 | 5,250 | 5,209 | ||||||
McKesson Corp., | 7,600 | 7,609 | ||||||
15,835 | ||||||||
Home Improvement – 0.1% |
| |||||||
Whirlpool Corp., | 1,000 | 997 | ||||||
Integrated Oils – 0.1% |
| |||||||
Chevron Corp., | 1,000 | 1,004 | ||||||
Life Insurance – 0.5% |
| |||||||
New York Life Global Funding, | 9,305 | 9,337 | ||||||
Machinery Manufacturing – 3.1% |
| |||||||
Caterpillar Financial Services Corp., | ||||||||
1.05%, 3/26/15 | 2,000 | 2,007 | ||||||
1.10%, 5/29/15 | 2,000 | 2,011 | ||||||
0.70%, 11/6/15 | 11,645 | 11,665 | ||||||
1.00%, 3/3/17 | 2,365 | 2,357 | ||||||
1.25%, 8/18/17 | 4,300 | 4,287 | ||||||
Caterpillar, Inc., | 2,030 | 2,038 | ||||||
Eaton Corp., | 4,000 | 4,013 | ||||||
Illinois Tool Works, Inc., | 2,000 | 1,992 | ||||||
John Deere Capital Corp., | 2,000 | 2,006 | ||||||
0.95%, 6/29/15 | 7,522 | 7,552 | ||||||
0.70%, 9/4/15 | 8,000 | 8,026 | ||||||
1.13%, 6/12/17 | 5,000 | 4,974 | ||||||
52,928 | ||||||||
Managed Care – 0.2% |
| |||||||
UnitedHealth Group, Inc., | 2,000 | 2,006 | ||||||
WellPoint, Inc., | 2,000 | 2,012 | ||||||
4,018 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 49.3% – continued | ||||||||
Mass Merchants – 0.7% |
| |||||||
Costco Wholesale Corp., | $11,645 | $11,665 | ||||||
Medical Equipment & Devices Manufacturing – 1.0% |
| |||||||
Baxter International, Inc., | 5,000 | 5,016 | ||||||
Stryker Corp., | 6,895 | 7,036 | ||||||
Thermo Fisher Scientific, Inc., | 4,725 | 4,877 | ||||||
16,929 | ||||||||
Metals & Mining – 0.5% | ||||||||
Freeport-McMoRan, Inc., | 2,500 | 2,507 | ||||||
Glencore Funding LLC, | 6,000 | 6,041 | ||||||
8,548 | ||||||||
Oil & Gas Services & Equipment – 1.6% |
| |||||||
Cameron International Corp., | ||||||||
1.15%, 12/15/16 | 3,000 | 2,998 | ||||||
1.40%, 6/15/17 | 3,300 | 3,297 | ||||||
Halliburton Co., | 20,250 | 20,342 | ||||||
26,637 | ||||||||
Pharmaceuticals – 3.2% |
| |||||||
AbbVie, Inc., | 13,690 | 13,742 | ||||||
GlaxoSmithKline Capital, Inc., | 9,500 | 9,506 | ||||||
Johnson & Johnson, | 1,500 | 1,498 | ||||||
Merck & Co., Inc., | ||||||||
2.25%, 1/15/16 | 3,393 | 3,468 | ||||||
0.59%, 5/18/18 | 12,782 | 12,851 | ||||||
Mylan, Inc., | ||||||||
1.80%, 6/24/16 | 3,000 | 3,035 | ||||||
1.35%, 11/29/16 | 3,000 | 3,000 | ||||||
Pfizer, Inc., | 5,000 | 4,988 | ||||||
Zoetis, Inc., | 3,000 | 3,006 | ||||||
55,094 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 86 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 49.3% – continued | ||||||||
Pipeline – 0.5% | ||||||||
Enterprise Products Operating LLC, | $5,000 | $5,101 | ||||||
1.25%, 8/13/15 | 3,000 | 3,014 | ||||||
8,115 | ||||||||
Property & Casualty Insurance – 1.3% |
| |||||||
Berkshire Hathaway Finance Corp., | 2,362 | 2,417 | ||||||
0.95%, 8/15/16 | 11,100 | 11,140 | ||||||
1.60%, 5/15/17 | 1,005 | 1,016 | ||||||
Berkshire Hathaway, Inc., | 4,500 | 4,516 | ||||||
2.20%, 8/15/16 | 2,500 | 2,572 | ||||||
21,661 | ||||||||
Publishing & Broadcasting – 0.2% |
| |||||||
NBCUniversal Enterprise, Inc., | 3,000 | 3,030 | ||||||
Real Estate – 2.2% |
| |||||||
ARC Properties Operating Partnership L.P./Clark Acquisition LLC, | 5,000 | 4,997 | ||||||
Kimco Realty Corp., | 11,000 | 12,148 | ||||||
Simon Property Group L.P., | 6,737 | 6,968 | ||||||
Ventas Realty L.P., | 2,000 | 2,014 | ||||||
1.25%, 4/17/17 | 4,000 | 3,981 | ||||||
Ventas Realty L.P./Ventas Capital Corp., | 3,000 | 3,080 | ||||||
WEA Finance LLC/Westfield UK & Europe Finance PLC, | 5,000 | 5,007 | ||||||
38,195 | ||||||||
Refining & Marketing – 0.2% |
| |||||||
Phillips 66, | 4,000 | 4,025 | ||||||
Restaurants – 0.4% |
| |||||||
McDonald’s Corp., | 4,400 | 4,413 | ||||||
Starbucks Corp., | 2,000 | 2,000 | ||||||
6,413 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 49.3% – continued | ||||||||
Retail – Consumer Discretionary – 2.0% | ||||||||
Amazon.com, Inc., | $10,311 | $10,327 | ||||||
AutoZone, Inc., | 5,050 | 5,049 | ||||||
eBay, Inc., | 4,250 | 4,263 | ||||||
Home Depot (The), Inc., | 4,000 | 4,266 | ||||||
Lowe’s Cos., Inc., | 10,000 | 10,014 | ||||||
33,919 | ||||||||
Software & Services – 0.3% |
| |||||||
International Business Machines Corp., | 5,000 | 5,015 | ||||||
Supermarkets & Pharmacies – 0.3% |
| |||||||
CVS Health Corp., | 3,000 | 3,004 | ||||||
Kroger (The) Co., | 2,000 | 2,000 | ||||||
5,004 | ||||||||
Tobacco – 0.4% |
| |||||||
Reynolds American, Inc., | 6,900 | 6,921 | ||||||
Transportation & Logistics – 0.5% |
| |||||||
PACCAR Financial Corp., | 3,000 | 2,985 | ||||||
0.83%, 12/6/18 | 5,500 | 5,554 | ||||||
8,539 | ||||||||
Utilities – 2.2% |
| |||||||
Alabama Power Co., | 2,900 | 2,899 | ||||||
Dominion Resources, Inc., | 5,000 | 4,996 | ||||||
Duke Energy Carolinas LLC, | 5,015 | 5,253 | ||||||
Duke Energy Indiana, Inc., | 2,000 | 2,008 | ||||||
Georgia Power Co., | 3,720 | 3,726 | ||||||
0.63%, 11/15/15 | 1,900 | 1,901 | ||||||
NextEra Energy Capital Holdings, Inc., | 2,000 | 2,008 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 87 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
ULTRA-SHORT FIXED INCOME FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 49.3% – continued |
| |||||||
Utilities – 2.2% – continued | ||||||||
Southern Co.(The), | $9,500 | $9,454 | ||||||
Xcel Energy, Inc., | 5,000 | 4,993 | ||||||
37,238 | ||||||||
Wireless Telecommunications Services – 1.4% |
| |||||||
AT&T, Inc., | 5,000 | 5,006 | ||||||
0.62%, 2/12/16 | 5,700 | 5,713 | ||||||
Verizon Communications, Inc., | 1,000 | 1,001 | ||||||
1.76%, 9/15/16 | 2,000 | 2,050 | ||||||
2.50%, 9/15/16 | 1,203 | 1,235 | ||||||
1.98%, 9/14/18 | 9,198 | 9,689 | ||||||
24,694 | ||||||||
Total Corporate Bonds | ||||||||
(Cost $841,661) | 843,719 | |||||||
COVERED BONDS – 0.1% | ||||||||
Banks – 0.1% | ||||||||
Canadian Imperial Bank of Commerce, 1.50%, 12/12/14 (1)(2) | 2,000 | 2,004 | ||||||
Total Covered Bonds | ||||||||
(Cost $2,003) | �� | 2,004 | ||||||
FOREIGN ISSUER BONDS – 33.6% | ||||||||
Automobiles Manufacturing – 0.9% | ||||||||
Hyundai Capital Services, Inc., | 3,000 | 3,011 | ||||||
Volkswagen International Finance N.V., 1.13%, 11/18/16 (1) | 11,600 | 11,612 | ||||||
14,623 | ||||||||
Banks – 12.7% | ||||||||
Abbey National Treasury Services PLC, | 5,000 | 4,999 | ||||||
ABN AMRO Bank N.V., | 4,500 | 4,530 | ||||||
1.04%, 10/28/16 (1) | 5,000 | 5,045 | ||||||
Australia & New Zealand Banking Group Ltd., | 3,000 | 3,013 | ||||||
1.25%, 1/10/17 | 11,500 | 11,512 | ||||||
0.79%, 5/15/18 | 3,500 | 3,524 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 33.6% – continued |
| |||||||
Banks – 12.7% – continued | ||||||||
Bank of Tokyo-Mitsubishi UFJ (The) Ltd., | $5,000 | $5,032 | ||||||
1.20%, 3/10/17 (1) | 4,000 | 3,982 | ||||||
Banque Federative du Credit Mutuel S.A., | 5,000 | 5,049 | ||||||
1.08%, 1/20/17 (1) | 2,500 | 2,519 | ||||||
Barclays Bank PLC, | 3,000 | 3,052 | ||||||
0.81%, 2/17/17 | 2,200 | 2,209 | ||||||
BPCE S.A., | 9,000 | 9,139 | ||||||
1.63%, 2/10/17 | 1,700 | 1,707 | ||||||
Canadian Imperial Bank of Commerce, | 1,000 | 1,006 | ||||||
1.35%, 7/18/16 | 3,000 | 3,030 | ||||||
Commonwealth Bank of Australia, | 3,000 | 3,022 | ||||||
1.25%, 9/18/15 | 6,000 | 6,047 | ||||||
1.13%, 3/13/17 | 5,500 | 5,477 | ||||||
Cooperatieve Centrale Raiffeisen- Boerenleenbank B.A., | 6,000 | 6,031 | ||||||
Credit Agricole S.A., | 8,000 | 8,090 | ||||||
1.03%, 4/15/19 (1) | 10,000 | 10,081 | ||||||
Deutsche Bank A.G., | 1,000 | 1,015 | ||||||
HSBC Bank PLC, | 1,500 | 1,534 | ||||||
0.87%, 5/15/18 (1)(2) | 3,000 | 3,026 | ||||||
ING Bank N.V., | 11,000 | 11,107 | ||||||
Macquarie Bank Ltd., | 6,500 | 6,607 | ||||||
1.65%, 3/24/17 (1) | 5,000 | 5,000 | ||||||
National Australia Bank Ltd., | 8,000 | 8,076 | ||||||
0.78%, 7/25/16 | 500 | 503 | ||||||
1.30%, 7/25/16 | 4,000 | 4,031 | ||||||
1.25%, 3/17/17 (1) | 5,000 | 4,996 | ||||||
1.30%, 6/30/17 (1) | 10,000 | 9,959 | ||||||
Shinhan Bank, | 3,000 | 3,008 | ||||||
Sumitomo Mitsui Banking Corp., | 5,000 | 5,004 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 88 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 33.6% – continued | ||||||||
Banks – 12.7% – continued | ||||||||
0.55%, 7/11/17 | $2,600 | $2,601 | ||||||
Suncorp-Metway Ltd., | 5,000 | 5,007 | ||||||
Svenska Handelsbanken AB, | 2,200 | 2,209 | ||||||
UBS A.G., | 8,500 | 8,545 | ||||||
Westpac Banking Corp., | 2,000 | 2,012 | ||||||
1.13%, 9/25/15 | 3,000 | 3,021 | ||||||
0.95%, 1/12/16 | 5,500 | 5,520 | ||||||
1.05%, 11/25/16 | 4,000 | 4,005 | ||||||
1.20%, 5/19/17 | 8,000 | 7,974 | ||||||
0.98%, 7/30/18 | 5,000 | 5,060 | ||||||
217,916 | ||||||||
Diversified Banks – 3.3% | ||||||||
Bank of Montreal, | 5,000 | 5,044 | ||||||
Bank of Nova Scotia (The), | 1,000 | 1,006 | ||||||
1.38%, 7/15/16 | 3,500 | 3,532 | ||||||
1.10%, 12/13/16 | 3,000 | 3,005 | ||||||
1.30%, 7/21/17 | 6,000 | 5,970 | ||||||
BNP Paribas S.A., | 8,500 | 8,549 | ||||||
1.25%, 12/12/16 | 10,000 | 10,020 | ||||||
Credit Agricole S.A., | 2,000 | 2,016 | ||||||
Royal Bank of Canada, | 2,500 | 2,502 | ||||||
0.76%, 3/15/19 | 7,000 | 7,064 | ||||||
Societe Generale S.A., | 8,000 | 8,011 | ||||||
56,719 | ||||||||
Exploration & Production – 2.6% | ||||||||
Canadian Natural Resources Ltd., | 7,000 | 7,004 | ||||||
0.61%, 3/30/16 | 3,000 | 3,007 | ||||||
CNOOC Finance 2013 Ltd., | 6,000 | 6,005 | ||||||
CNPC General Capital Ltd., | 1,000 | 1,000 | ||||||
1.13%, 5/14/17 (1) | 2,500 | 2,506 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 33.6% – continued | ||||||||
Exploration & Production – 2.6% – continued |
| |||||||
Petroleos Mexicanos, | $5,000 | $5,225 | ||||||
Sinopec Group Overseas Development 2014 Ltd., | 20,000 | 20,017 | ||||||
44,764 | ||||||||
Financial Services – 0.4% | ||||||||
Hana Bank, | 5,000 | 5,001 | ||||||
Sumitomo Mitsui Trust Bank Ltd., | 2,000 | 2,013 | ||||||
7,014 | ||||||||
Food & Beverage – 1.2% | ||||||||
Heineken N.V., | 5,000 | 5,007 | ||||||
Suntory Holdings Ltd., | 15,000 | 15,003 | ||||||
20,010 | ||||||||
Government Agencies – 0.6% | ||||||||
Japan Bank for International Cooperation, | 3,000 | 3,083 | ||||||
Nederlandse Waterschapsbank N.V., | 3,000 | 3,009 | ||||||
Oesterreichische Kontrollbank A.G., | 2,000 | 2,012 | ||||||
Svensk Exportkredit AB, | 1,500 | 1,500 | ||||||
9,604 | ||||||||
Government Development Banks – 1.2% | ||||||||
Export-Import Bank of Korea, | 8,000 | 8,033 | ||||||
1.08%, 9/17/16 | 4,000 | 4,026 | ||||||
Korea Development Bank (The), | 9,000 | 8,985 | ||||||
21,044 | ||||||||
Government Regional – 0.3% | ||||||||
Province of Ontario Canada, | 5,000 | 5,024 | ||||||
Integrated Oils – 4.5% | ||||||||
BP Capital Markets PLC, | 5,000 | 5,012 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 89 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
ULTRA-SHORT FIXED INCOME FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 33.6% – continued |
| |||||||
Integrated Oils – 4.5% – continued | ||||||||
0.70%, 11/6/15 | $12,660 | $12,670 | ||||||
0.66%, 11/7/16 | 1,000 | 1,001 | ||||||
0.87%, 9/26/18 | 5,000 | 5,032 | ||||||
CNOOC Nexen Finance 2014 ULC, | 1,000 | 1,000 | ||||||
Petrobras Global Finance B.V., | 10,000 | 9,990 | ||||||
3.25%, 3/17/17 | 5,000 | 5,060 | ||||||
Shell International Finance B.V., | 5,000 | 5,103 | ||||||
0.63%, 12/4/15 | 5,000 | 5,003 | ||||||
0.90%, 11/15/16 | 4,000 | 4,005 | ||||||
Sinopec Capital 2013 Ltd., | 2,800 | 2,793 | ||||||
Statoil ASA, | 6,000 | 6,000 | ||||||
0.69%, 11/8/18 | 6,000 | 6,041 | ||||||
Total Capital International S.A., | 3,000 | 3,014 | ||||||
1.00%, 1/10/17 | 1,200 | 1,195 | ||||||
0.80%, 8/10/18 | 2,500 | 2,524 | ||||||
Total Capital S.A., | 2,000 | 2,053 | ||||||
77,496 | ||||||||
Internet Media – 0.2% | ||||||||
Tencent Holdings Ltd., | 3,000 | 3,001 | ||||||
Machinery Manufacturing – 0.2% | ||||||||
Pentair Finance S.A., | 2,000 | 2,011 | ||||||
Tyco Electronics Group S.A., | 1,500 | 1,506 | ||||||
3,517 | ||||||||
Medical Equipment & Devices Manufacturing – 0.3% |
| |||||||
Covidien International Finance S.A., | 2,000 | 2,009 | ||||||
2.80%, 6/15/15 | 3,333 | 3,387 | ||||||
5,396 | ||||||||
Metals & Mining – 0.6% | ||||||||
Anglo American Capital PLC, | 3,000 | 3,017 | ||||||
BHP Billiton Finance USA Ltd., | 3,200 | 3,203 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 33.6% – continued |
| |||||||
Metals & Mining – 0.6% – continued | ||||||||
1.00%, 2/24/15 | $1,000 | $1,003 | ||||||
Rio Tinto Finance USA PLC, | 1,000 | 1,009 | ||||||
Xstrata Finance Canada Ltd., | 2,000 | 2,005 | ||||||
10,237 | ||||||||
Oil & Gas Services & Equipment – 0.2% | ||||||||
Ensco PLC, | 3,500 | 3,605 | ||||||
Pharmaceuticals – 2.1% | ||||||||
Actavis Funding SCS, | 9,000 | 8,832 | ||||||
GlaxoSmithKline Capital PLC, | 13,455 | 13,494 | ||||||
1.50%, 5/8/17 | 3,640 | 3,665 | ||||||
Sanofi, | 4,877 | 5,022 | ||||||
Takeda Pharmaceutical Co. Ltd., | 4,750 | 4,765 | ||||||
35,778 | ||||||||
Pipeline – 0.4% | ||||||||
TransCanada PipeLines Ltd., | 5,000 | 5,010 | ||||||
0.75%, 1/15/16 | 1,600 | 1,599 | ||||||
6,609 | ||||||||
Power Generation – 0.3% | ||||||||
Electricite de France, | 6,000 | 6,009 | ||||||
Supermarkets & Pharmacies – 0.2% | ||||||||
Tesco PLC, | 4,000 | 4,010 | ||||||
Supranationals – 0.4% | ||||||||
Asian Development Bank, | 4,700 | 4,687 | ||||||
Corp Andina de Fomento, | 3,000 | 3,017 | ||||||
7,704 | ||||||||
Tobacco – 0.1% | ||||||||
BAT International Finance PLC, | 1,000 | 1,005 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 90 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 33.6% – continued | ||||||||
Transportation & Logistics – 0.3% | ||||||||
Korea Expressway Corp., | $5,000 | $4,987 | ||||||
Travel & Lodging – 0.2% | ||||||||
Carnival Corp., | 2,700 | 2,709 | ||||||
Wireless Telecommunications Services – 0.4% |
| |||||||
KT Corp., | 3,000 | 2,996 | ||||||
Vodafone Group PLC, | 3,400 | 3,410 | ||||||
6,406 | ||||||||
Total Foreign Issuer Bonds | ||||||||
(Cost $573,220) | 575,187 | |||||||
U.S. GOVERNMENT AGENCIES – 1 .3% (3) | ||||||||
Federal Farm Credit Bank – 0.1% | ||||||||
1.05%, 3/28/16 | 1,225 | 1,236 | ||||||
Federal Home Loan Bank – 0.6% | ||||||||
0.90%, 3/10/17 | 8,000 | 7,986 | ||||||
0.95%, 3/27/17 | 2,000 | 1,998 | ||||||
9,984 | ||||||||
Freddie Mac – 0.6% | ||||||||
0.65%, 7/29/16 | 2,000 | 1,994 | ||||||
1.13%, 5/19/17 | 6,000 | 6,003 | ||||||
1.02%, 6/30/17 | 3,000 | 2,989 | ||||||
10,986 | ||||||||
Total U.S. Government Agencies | ||||||||
(Cost $22,233) | 22,206 | |||||||
U.S. GOVERNMENT OBLIGATIONS – 3.2% | ||||||||
U.S. Treasury Notes – 3.2% | ||||||||
0.50%, 7/31/16 | 7,000 | 7,001 | ||||||
0.50%, 8/31/16 | 5,500 | 5,494 | ||||||
0.50%, 9/30/16 | 17,000 | 16,972 | ||||||
0.88%, 6/15/17 | 15,000 | 14,965 | ||||||
0.88%, 8/15/17 | 10,000 | 9,952 | ||||||
54,384 | ||||||||
Total U.S. Government Obligations | ||||||||
(Cost $54,429) | 54,384 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 1.8% | ||||||||
Florida – 0.1% | ||||||||
Florida State Hurricane Catastrophe Fund Finance Corp. Revenue Bonds, | $2,000 | $2,017 | ||||||
Georgia – 0.1% | ||||||||
Georgia State Taxable G.O. Unlimited Bonds, | 2,000 | 2,004 | ||||||
Idaho – 0.6% | ||||||||
Idaho Housing & Finance Association, 0.56%, 11/6/14 (4) | 10,320 | 10,319 | ||||||
Illinois – 0.4% | ||||||||
Regional Transportation Authority Il TRB, Series A1, Working Cash Notes, | 7,150 | 7,140 | ||||||
Maine – 0.2% | ||||||||
Maine State Municipal Bond Bank Liquor Operation TRB, | 2,200 | 2,208 | ||||||
New Jersey – 0.1% | ||||||||
Hudson County Improvement Authority Taxable Revenue Pooled Notes, Series S2 (County Gtd.), | 1,950 | 1,953 | ||||||
New York – 0.3% | ||||||||
New York City Taxable G.O. Unlimited Bonds, Subseries D2, | 4,650 | 4,667 | ||||||
Total Municipal Bonds | ||||||||
(Cost $30,281) | 30,308 | |||||||
NUMBER OF SHARES | VALUE (000s) | |||||||
INVESTMENT COMPANIES – 2.4% | ||||||||
Northern Institutional Funds - Diversified Assets Portfolio, | 41,817,798 | $41,818 | ||||||
Total Investment Companies | ||||||||
(Cost $41,818) | 41,818 | |||||||
Total Investments – 100.6% | ||||||||
(Cost $1,718,010) | 1,722,151 | |||||||
Liabilities less Other Assets – (0.6)% | (9,829 | ) | ||||||
NET ASSETS – 100.0% | $1,712,322 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 91 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
ULTRA-SHORT FIXED INCOME FUND continued
(1) | 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. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Trustees of Northern Funds. |
(2) | Restricted security that has been deemed illiquid. At September 30, 2014, the value of these restricted illiquid securities amounted to approximately $122,086,000 or 7.1% of net assets. Additional information on each restricted illiquid security is as follows: |
SECURITY | ACQUISITION AND ENFORCEABLE DATE | ACQUISITION (000s) | ||||
ABN AMRO Bank N.V., 1.38%, 1/22/16 | 1/17/13 | $4,499 | ||||
American Honda Finance Corp., 1.45%, 2/27/15 | 2/21/12 | 1,999 | ||||
American Honda Finance Corp., 1.00%, 8/11/15 | 9/4/12-11/27/12 | 6,006 | ||||
American Honda Finance Corp., 0.61%, 5/26/16 | 5/28/13-11/13/13 | 2,404 | ||||
ARI Fleet Lease Trust, Series 2013-A, Class A2, 0.70%, 12/15/15 | 3/26/13 | 1,652 | ||||
Canadian Imperial Bank of Commerce, 1.50%, 12/12/14 | 2/23/12 | 2,036 | ||||
CNPC General Capital Ltd., 1.45%, 4/16/16 | 4/10/13 | 999 | ||||
Credit Agricole S.A., 1.39%, 4/15/16 | 4/10/13 | 8,000 | ||||
Daimler Finance North America LLC, 0.83%, 1/9/15 | 5/16/13 | 738 | ||||
Daimler Finance North America LLC, 1.65%, 4/10/15 | 10/12/12 | 1,820 | ||||
Daimler Finance North America LLC, 1.30%, 7/31/15 | 1/3/14 | 3,501 | ||||
Daimler Finance North America LLC, 1.25%, 1/11/16 | 1/7/13 | 1,248 | ||||
Daimler Finance North America LLC, 1.10%, 8/1/18 | 7/24/13 | 5,000 | ||||
Enterprise Fleet Financing LLC, Series 2013-2, Class A2, 1.06%, 3/20/19 | 8/7/13 | 2,581 | ||||
GE Equipment Small Ticket LLC, Series 2013-1A, Class A2, 0.73%, 1/25/16 | 7/24/13 | 1,275 | ||||
Glencore Funding LLC, 1.70%, 5/27/16 | 5/22/13 | 5,998 |
SECURITY | ACQUISITION AND ENFORCEABLE DATE | ACQUISITION (000s) | ||||
Harley-Davidson Financial Services, Inc., 1.15%, 9/15/15 | 9/18/12 | $2,996 | ||||
Harley-Davidson Funding Corp., 5.75%, 12/15/14 | 1/26/12 | 3,030 | ||||
Heineken N.V., 0.80%, 10/1/15 | 10/2/12-11/5/12 | 4,999 | ||||
HSBC Bank PLC, 3.50%, 6/28/15 | 9/6/12 | 1,585 | ||||
HSBC Bank PLC, 0.87%, 5/15/18 | 8/22/13 | 3,000 | ||||
Hyundai Auto Lease Securitization Trust, Series 2013-B, Class A2, 0.75%, 3/15/16 | 8/7/13 | 5,071 | ||||
Hyundai Capital America, 1.88%, 8/9/16 | 8/6/13 | 4,997 | ||||
ING Bank N.V., 1.18%, 3/7/16 | 2/28/13 | 11,000 | ||||
Macquarie Bank Ltd., 2.00%, 8/15/16 | 8/7/13-9/11/13 | 6,491 | ||||
Master Credit Card Trust II, Series 2013-3A, Class A, 0.58%, 1/22/18 | 7/25/13 | 3,000 | ||||
New York Life Global Funding, 0.75%, 7/24/15 | 10/12/12-3/7/13 | 9,335 | ||||
Nissan Motor Acceptance Corp., 1.00%, 3/15/16 | 3/11/13 | 998 | ||||
SABMiller Holdings, Inc., 1.85%, 1/15/15 | 1/11/12 | 2,000 | ||||
SABMiller Holdings, Inc., 2.45%, 1/15/17 | 7/10/14 | 2,682 | ||||
Sinopec Capital 2013 Ltd., 1.25%, 4/24/16 | 5/14/13 | 2,800 | ||||
Tesco PLC, 2.00%, 12/5/14 | 11/28/11 | 3,996 | ||||
Westpac Banking Corp., 1.03%, 7/17/15 | 7/10/12 | 2,000 | ||||
Xstrata Finance Canada Ltd., 2.85%, 11/10/14 | 11/3/11 | 1,998 |
(3) | The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury. On September 7, 2008, the Federal Housing Finance Agency (“FHFA”) placed Fannie Mae and Freddie Mac in conservatorship. The United States Treasury has put in place a set of financing agreements to ensure that these entities continue to meet their obligations to holders of bonds that they have issued or guaranteed. |
(4) | Zero coupon bond reflects effective yield on the date of purchase. |
(5) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 92 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
(6) | At March 31, 2014, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $28,527,000 with net purchases of approximately $13,291,000 during the six months ended September 30, 2014. |
Percentages shown are based on Net Assets.
At September 30, 2014, the credit quality distribution for the Fund as a percentage of investments including cash was:
QUALITY DISTRIBUTION* | % OF INVESTMENTS | |||
U.S. Treasury | 3.2% | |||
U.S. Agency | 1.3 | |||
AAA | 9.7 | |||
AA | 20.6 | |||
A | 41.8 | |||
BBB | 20.3 | |||
A1 (Short Term) | 0.7 | |||
Cash Equivalents | 2.4 | |||
Total | 100.0% |
* Credit quality ratings are based on the available Moody’s, Standard & Poor’s, and/or Fitch ratings. When ratings from all three agencies are available, the median rating is used. When ratings are available from two of the agencies, the lower rating is used. If none of these three rating agencies has assigned a rating the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). U.S. government securities consist of obligations issued or guaranteed by the U.S. Treasury. Agency securities consist of obligations issued or guaranteed by U.S. government agencies and sponsored enterprises. The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Asset-Backed Securities | $– | $152,525 | (1) | $– | $152,525 | |||||||||||
Corporate Bonds | – | 843,719 | (1) | – | 843,719 | |||||||||||
Covered Bonds | – | 2,004 | (1) | – | 2,004 | |||||||||||
Foreign Issuer Bonds | – | 575,187 | (1) | – | 575,187 | |||||||||||
U.S. Government Agencies | – | 22,206 | (1) | – | 22,206 | |||||||||||
U.S. Government Obligations | – | 54,384 | (1) | – | 54,384 | |||||||||||
Municipal Bonds | – | 30,308 | (1) | – | 30,308 | |||||||||||
Investment Companies | 41,818 | – | – | 41,818 | ||||||||||||
Total Investments | $41,818 | $1,680,333 | $– | $1,722,151 |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 93 | FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
U.S. GOVERNMENT FUND
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 24.0% (1) | ||||||||
Fannie Mae – 3.7% |
| |||||||
2.63%, 9/6/24 | $750 | $738 | ||||||
Pool #555649, | 80 | 91 | ||||||
Pool #893082, | 275 | 296 | ||||||
1,125 | ||||||||
Freddie Mac – 3.5% | ||||||||
Pool #1J0365, | 381 | 410 | ||||||
Pool #1J2840, | 575 | 618 | ||||||
Pool #410092, | 37 | 37 | ||||||
1,065 | ||||||||
Government National Mortgage Association – 15.7% |
| |||||||
Series 2011-49, Class A, | 310 | 313 | ||||||
Series 2012-123, Class A, | 495 | 454 | ||||||
Series 2013-12, Class KA, | 316 | 307 | ||||||
Series 2013-142, Class AD, | 486 | 477 | ||||||
Series 2013-146, Class AK, | 418 | 417 | ||||||
Series 2013-156, Class AG, | 417 | 415 | ||||||
Series 2013-17, Class AF, | 460 | 450 | ||||||
Series 2013-176, Class AD, | 358 | 358 | ||||||
Series 2013-40, Class AB, | 392 | 389 | ||||||
Series 2013-45, Class A, | 449 | 442 | ||||||
Series 2013-92, Class AB, | 764 | 757 | ||||||
4,779 | ||||||||
Government National Mortgage Association I – 0.0% |
| |||||||
Pool #268360, | 7 | 7 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 24.0% (1) – continued | ||||||||
Government National Mortgage Association I – 0.0% – continued |
| |||||||
Pool #270288, | $13 | $13 | ||||||
20 | ||||||||
Government National Mortgage Association II – 1.1% |
| |||||||
Pool #82581, | 328 | 345 | ||||||
Total U.S. Government Agencies | ||||||||
(Cost $7,359) | 7,334 |
U.S. GOVERNMENT OBLIGATIONS – 60.5% | ||||||||
U.S. Treasury Notes – 60.5% | ||||||||
1.25%, 10/31/15 | 935 | 946 | ||||||
0.63%, 2/15/17 | 1,055 | 1,051 | ||||||
0.63%, 8/31/17 | 3,450 | 3,404 | ||||||
1.00%, 9/15/17 | 2,080 | 2,077 | ||||||
1.38%, 6/30/18 | 670 | 668 | ||||||
1.50%, 2/28/19 | 2,945 | 2,924 | ||||||
1.00%, 9/30/19 | 460 | 442 | ||||||
1.75%, 9/30/19 | 1,519 | 1,517 | ||||||
2.00%, 2/28/21 | 3,030 | 3,004 | ||||||
2.13%, 9/30/21 | 1,670 | 1,660 | ||||||
2.38%, 8/15/24 | 755 | 746 | ||||||
18,439 | ||||||||
Total U.S. Government Obligations | ||||||||
(Cost $18,486) | 18,439 |
NUMBER OF SHARES | VALUE (000s) | |||||||
INVESTMENT COMPANIES – 1.2% | ||||||||
Northern Institutional Funds - U.S. Government Portfolio, | 353,456 | $353 | ||||||
Total Investment Companies | ||||||||
(Cost $353) | 353 |
See Notes to the Financial Statements.
FIXED INCOME FUNDS | 94 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
SHORT-TERM INVESTMENTS –13.1% | ||||||||
U.S. Treasury Bill, | $3,000 | $2,999 | ||||||
0.12%, 4/2/15 (4) | 1,000 | 999 | ||||||
Total Short-Term Investments | ||||||||
(Cost $3,998) | 3,998 | |||||||
Total Investments – 98.8% | ||||||||
(Cost $30,196) | 30,124 | |||||||
Other Assets less Liabilities – 1.2% | 373 | |||||||
NET ASSETS – 100.0% | $30,497 |
(1) | The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury. On September 7, 2008, the Federal Housing Finance Agency (“FHFA”) placed Fannie Mae and Freddie Mac in conservatorship. The United States Treasury has put in place a set of financing agreements to ensure that these entities continue to meet their obligations to holders of bonds that they have issued or guaranteed. |
(2) | At March 31, 2014, the value of the Fund’s investment in the U.S. Government Portfolio of the Northern Institutional Funds was approximately $158,000 with net purchases of approximately $195,000 during the six months ended September 30, 2014. |
(3) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
(4) | Security pledged as collateral to cover margin requirements for open futures contracts. |
Percentages shown are based on Net Assets.
At September 30, 2014, the Fund had open futures contracts as follows:
TYPE | NUMBER OF CONTRACTS | NOTIONAL AMOUNT (000s) | CONTRACT POSITION | CONTRACT EXP. | UNREALIZED LOSS (000s) | |||||||||||||||
2-Year U.S. Treasury Note | 16 | $3,502 | Long | 12/14 | $(1) | |||||||||||||||
5-Year U.S. Treasury Note | 3 | 355 | Long | 12/14 | (1) | |||||||||||||||
Total | $(2) |
At September 30, 2014, the credit quality distribution for the Fund as a percentage of investments including cash was:
QUALITY DISTRIBUTION* | % OF INVESTMENTS | |||
U.S. Treasury | 91.5% | |||
U.S. Agency | 7.3 | |||
Cash Equivalents | 1.2 | |||
Total | 100.0% |
* Credit quality ratings are based on the conservative average of Moody’s, Standard & Poor’s, and Fitch ratings. If ratings from all three rating agencies disagree, the model assigns the middle rating to the security. If two of the three agree, the model assigns the rating from those two to the security. If none of these three rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). U.S. government securities consist of obligations issued or guaranteed by the U.S. Treasury. Agency securities consist of obligations issued or guaranteed by U.S. government agencies and sponsored enterprises. The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuations of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
U.S. Government Agencies | $– | $7,334 | (1) | $– | $7,334 | |||||||||||
U.S. Government Obligations | – | 18,439 | (1) | – | 18,439 | |||||||||||
Investment Companies | 353 | – | – | 353 | ||||||||||||
Short-Term Investments | – | 3,998 | – | 3,998 | ||||||||||||
Total Investments | $353 | $29,771 | $– | $30,124 | ||||||||||||
OTHER FINANCIAL INSTRUMENTS |
| |||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (2) | $– | $– | $ | (2) |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
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EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULES OF INVESTMENTS | ||||||
AGM | Assured Guaranty Municipal Corporation | IDA | Industrial Development Authority | |||
AMBAC | American Municipal Bond Assurance Corporation | LOC | Line of Credit | |||
AMT | Alternative Minimum Tax | NATL-RE | National Public Finance Guarantee Corporation | |||
BANS | Bond Anticipation Notes | PCR | Pollution Control Revenue | |||
COPS | Certificates of Participation | PSF | Permanent School Fund | |||
EDA | Economic Development Authority | Q-SBLF | Qualified School Board Loan Fund | |||
FHLMC | Federal Home Loan Mortgage Corporation | SCSDE | South Carolina State Department of Education | |||
GANS | Grant Anticipation Notes | SFM | Single Family Mortgage | |||
G.O. | General Obligation | TRB | Tax Revenue Bonds | |||
GTD | Guaranteed | VRDB | Variable Rate Demand Bonds |
The interest rates represent either the stated coupon rate, annualized yield on date of purchase for discount notes, the current reset rate for floating rate securities, the 7-day yield for money market funds or, for interest-only or principal-only securities, the current effective yield.
Maturity dates represent the stated date on the security or the puttable date for floating and variable rate securities.
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1. ORGANIZATION
Northern Funds (the “Trust”) is a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust offers 48 funds as of September 30, 2014, each with its own investment objective (e.g., long-term capital appreciation, total return or income consistent with preservation of capital). The Core Bond, Fixed Income, High Yield Fixed Income, Short Bond, Short-Intermediate U.S. Government, Tax-Advantaged Ultra-Short Fixed Income, Ultra-Short Fixed Income and U.S. Government Funds (each a “Fund” and collectively, the “Funds”) are separate investment portfolios of the Trust, all of which are diversified portfolios of the Trust. Each of the Funds is presented herein.
Northern Trust Investments, Inc. (“NTI”), a subsidiary of The Northern Trust Company (“Northern Trust”), serves as the investment adviser for each of the Funds. Northern Trust serves as the custodian and transfer agent for the Trust. NTI serves as the Trust’s administrator. Northern Funds Distributors, LLC is the Trust’s distributor.
2. SIGNIFICANT ACCOUNTING POLICIES
The Trust, which is an investment company within the scope of Financial Accounting Standards Board (“FASB”) Accounting Standards Update 2013-08, follows accounting and reporting guidance under FASB Accounting Standards Codification Topic 946, “Financial Services-Investment Companies”.
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“U.S.”) or “U.S. GAAP.” The preparation of financial statements in conformity with U.S. 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 may differ from those estimates.
The net asset value (“NAV”) of each Fund is determined daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), generally 3:00 P.M. Central Time, on each day the NYSE is open for trading.
A) VALUATION OF SECURITIES AND DERIVATIVE CONTRACTS Securities are valued at their fair value. Equity securities traded on U.S. securities exchanges or in the NASDAQ National Market System are principally valued at the regular trading session closing price (generally, 3:00 P.M. Central Time) on the exchange or market in which such securities are principally traded. If any such security is not traded on a valuation date, it is valued at the most recent quoted bid price. Over-the-counter securities not reported in the NASDAQ National Market System are also generally valued at the most recent quoted bid price. Fixed income securities, however, may be valued on the basis of evaluated prices provided by independent pricing services when such prices are believed to reflect the fair value of such securities or broker provided prices. Such prices may be determined by taking into account other similar securities’ prices, yields, maturities, call features, ratings, prepayment speeds, credit risks, cash flows, institutional size trading in similar groups of securities and developments related to specific securities.
The values of securities of foreign issuers are generally based upon market quotations which, depending upon local convention or regulation, may be the last sale price, the last bid price or the mean between the last bid and asked price as of, in each case, the close of the appropriate exchange or other designated time. Foreign fixed income securities, however, may, like domestic fixed income securities, be valued based on evaluated prices provided by independent pricing services when such prices are believed to reflect the fair value of such securities.
Shares of open-end investment companies are valued at their NAV. Spot and forward foreign currency exchange contracts are generally valued using an independent pricing service. Exchange-traded financial futures and options are valued at the settlement price as established by the exchange on which they are traded. Over-the-counter options are valued at broker-provided prices, as are swaps, caps, collars and floors. The foregoing prices may be obtained from one or more independent pricing services or, as needed or applicable, independent broker-dealers. Short-term investments with a maturity of 60 days or less are valued at their amortized cost, which NTI, as authorized by the Board of Trustees (the “Board”), has determined approximates fair value.
Any securities for which market quotations are not readily available or are believed to be incorrect are valued at fair value as determined in good faith by NTI under the supervision of the Board. The Trust, in its discretion, may make adjustments to the prices of securities held by a Fund if an event occurs after the publication of fair values normally used by a Fund but before the time as of which the Fund calculates its NAV, depending on the nature and significance of the event, consistent with applicable regulatory guidance and U.S. GAAP. This may occur particularly with respect to certain foreign securities held by a Fund, in which case the Trust may use adjustment factors obtained from an independent evaluation service that are intended to reflect more accurately the fair value of those securities as of the time the Fund’s NAV is calculated.
Northern Trust’s Pricing Unit (the “NT Pricing Unit”) is responsible for supplying a value for each portfolio security used in the
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NAV computations. Securities or other assets for which market quotations are not readily available or for which market quotations do not represent the value at the time of pricing are fair valued in accordance with policies and procedures established by, and subject to oversight of, the Funds’ Board. NTI has established a pricing and valuation committee (the “Asset Management PVC”) whose membership includes representatives of NTI, as well as independent control personnel from Northern Trust’s Legal and Fund Administration and NTI’s Compliance and Risk Management groups. The Asset Management PVC is responsible for the fair valuation of portfolio securities and the monitoring of the fair valuation process, subject to the Board’s oversight.
The Asset Management PVC is responsible for making the determination of the fair value of a security. In making its determination, the Asset Management PVC considers factors that it deems appropriate to the determination of the fair value of the security. Such factors include, but are not limited to, the type of security; the current financial position of the issuer; the cost of the investment; information as to any transactions or offers with respect to a security; market value of a similar freely-traded security; and news events. NTI will continue to monitor markets and the issuer’s circumstances that affect a security’s valuation to determine the continued appropriateness of a security’s fair valuation. The Asset Management PVC will review if the markets and issuer’s circumstances relevant to the valuation of a fair valued security change materially.
For each Level 3 security, if any, that has been fair valued pursuant to the policies adopted by the Board, the fair value price is compared against the last available and next available market quotations. The results of such back testing and fair valued securities are reported quarterly to the Valuation Committee of the Board.
The use of fair valuation involves the risk that the values used by the Funds to price their investments may be higher or lower than the values used by other unaffiliated investment companies and investors to price the same investments.
B) FUTURES CONTRACTS Certain Funds invest in long or short futures contracts for hedging purposes, to increase total return (i.e., for speculative purposes) or to maintain liquidity. When used as a hedge, a Fund may sell a futures contract in order to offset a decrease in the fair value of its portfolio securities that might otherwise result from a market decline. A Fund may do so either to hedge the value of its portfolio securities as a whole, or to protect against declines occurring prior to sales of securities in the value of the securities to be sold. Conversely, a Fund may purchase a futures contract as a hedge in anticipation of purchases of securities. In addition, a Fund may utilize futures contracts in anticipation of changes in the composition of its portfolio holdings. 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 generally required to make a margin deposit with the custodian of a specified amount of liquid assets. Futures are marked to market each day with the change in value reflected in the unrealized gains or losses. Risk may arise as a result of the potential inability of the counterparties to meet the terms of their contracts. Credit risk is mitigated to the extent that the exchange on which a particular futures contract is traded assumes the risk of a counterparty defaulting on its obligations under the contract. The Statements of Operations include any realized gains or losses on closed futures contracts in Net realized gains (losses) on futures contracts and any unrealized gains or losses on open futures contracts in Net change in unrealized appreciation (depreciation) on futures contracts. Further information on the impact of these positions on the Funds’ financial statements can be found in Note 9.
At September 30, 2014, the Short Bond Fund and Short-Intermediate U.S. Government Fund had both entered into exchange-traded long and short futures contracts; and the U.S. Government Fund had entered into exchange-traded long futures contracts. The aggregate market value of assets pledged to cover margin requirements for open positions was approximately $3,298,000, $3,998,000 and $999,000, respectively. Further information on the impact of these positions, if any, on the Funds’ financial statements can be found in Note 9.
C) FOREIGN CURRENCY TRANSLATION Values of investments denominated in foreign currencies are converted into U.S. dollars using the spot rates on the NYSE at generally 3:00 P.M. Central time. The cost of purchases and proceeds from sales of investments, interest and dividend income are translated into U.S. dollars using the spot market rates on the NYSE at generally 3:00 P.M. Central time. The gains or losses, if any, on investments resulting from changes in foreign exchange rates are included in the Statements of Operations in Net realized gains (losses) on investments and Net change in unrealized appreciation (depreciation) on investments. The gains or losses, if any, on translation of other assets and liabilities denominated in foreign currencies are included in Net realized gains (losses) on foreign currency transactions and Net change in unrealized appreciation (depreciation) on foreign currency translations in the Statements of Operations.
D) 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
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currency denominated securities will decline in value due to changes in foreign currency exchange rates. All forward foreign currency exchange contracts are “marked-to-market” daily at the applicable exchange rates. Any resulting unrealized gains or losses are recorded in Net change in unrealized appreciation (depreciation) on foreign currency translations in the Statements of Operations. A Fund records realized gains or losses at the time the forward foreign currency exchange contract is offset by entering into a closing transaction with the same counterparty or is extinguished by delivery of the currency. Realized gains or losses, if any, are included in Net realized gains (losses) on foreign currency transactions in the Statements of Operations.
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. A Fund bears the market risk from changes in foreign currency exchange rates and the credit risk if the counterparty to the contract fails to perform. No forward foreign currency exchange contracts were held by the Funds during the six months ended September 30, 2014.
E) WHEN-ISSUED/DELAYED DELIVERY SECURITIES Certain Funds purchase securities with delivery or payment to occur at a later date beyond the normal settlement period. At the time a Fund enters into the commitment to purchase a security, the transaction is recorded and the value of the commitment is reflected in the NAV. The value of the commitment may vary with market fluctuations. No interest accrues to a Fund until settlement takes place. At the time a Fund enters into this type of transaction, it is required to segregate collateral of cash or liquid assets having a fair value at least equal to the amount of the commitment. The Funds identify securities as segregated with a value that meets or exceeds the value of the commitments. When-issued securities at September 30, 2014, if any, are noted in each Fund’s Schedule of Investments and in aggregate as Payable for when-issued securities, in each Fund’s Statement of Assets and Liabilities.
On February 14, 2014, certain Funds entered into Master Securities Forward Transaction Agreements (“MSFTA”) with certain counterparties, pursuant to which the Funds have agreed to pledge cash and/or securities as collateral to certain counterparties to secure the repayment of the Funds’ obligations to those counterparties under the MSFTA. No collateral has been pledged for the Funds as of September 30, 2014.
F) MORTGAGE DOLLAR ROLLS Certain Funds enter into mortgage “dollar rolls” in which a Fund sells securities for delivery in the future (generally within 30 days) and simultaneously contracts with the same counterparty to repurchase other mortgage securities on a specified future date. During the roll period, a Fund loses the right to receive principal and interest paid on the securities sold. However, a Fund would benefit to the extent of any difference between the price received for the securities sold and the lower forward price for the future purchase.
For financial reporting and tax purposes, the Funds treat mortgage dollar rolls as two separate transactions; one involving the purchase of a security and a separate transaction involving a sale.
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. Interest income is recognized on an accrual basis and includes amortization of premiums and accretion of discounts using the effective yield method. The interest rates reflected in the Schedules of Investments represent the stated coupon rate, annualized yield on date of purchase for discount notes, the current reset rate for floating rate securities, the 7-day yield for money market funds or, for interest-only or principal-only securities, the current effective yield. Cost of investments includes amortization of premiums and accretion of discounts, if any. Dividend income is recognized on the ex-dividend date. The Funds’ income may be subject to certain state and local taxes.
H) EXPENSES Each Fund is charged for those expenses that are directly attributable to that Fund. Expenses incurred which do not specifically relate to an individual Fund are allocated among all Funds in the Trust in proportion to each Fund’s relative net assets.
I) REDEMPTION FEES The High Yield Fixed Income Fund charges a 2 percent redemption fee on the redemption of shares (including by exchange) held for 30 days or less. Prior to October 1, 2013, the Tax-Advantaged Ultra-Short Fixed Income and Ultra-Short Fixed Income Funds charged a 1 percent redemption fee on the redemption of shares (including by exchange) held for 90 days or less. For the purpose of applying the fee, the Fund uses a first-in, first-out (“FIFO”) method so that shares held longest are treated as being redeemed first and shares held shortest are treated as being redeemed last. The redemption fee is paid to the Fund and is intended to offset the trading, market impact and other costs associated with short-term money movements in and out of the Fund. The redemption fee may be collected by deduction from the redemption proceeds or, if assessed after the redemption transaction, through a separate billing. The redemption fee does not apply to certain types of redemptions as described in the Fund’s prospectus.
Redemption fees for the six months ended September 30, 2014, were approximately $53,000 for the High Yield Fixed Income Fund. Redemption fees for the fiscal year ended March 31, 2014,
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were approximately $244,000, $43,000, and $4,000 for the High Yield Fixed Income, Tax-Advantaged Ultra-Short Fixed Income and Ultra-Short Fixed Income Funds, respectively. This amount is included in “Payments for Shares Redeemed” in Note 8 — Capital Share Transactions. The impact from redemption fees paid to each Fund was less than $0.001 per share.
J) DISTRIBUTIONS TO SHAREHOLDERS Distributions of dividends from net investment income, if any, are declared and paid as follows:
DECLARATION FREQUENCY | PAYMENT FREQUENCY | |||||||
Core Bond | Daily | Monthly | ||||||
Fixed Income | Daily | Monthly | ||||||
High Yield Fixed Income | Daily | Monthly | ||||||
Short Bond | Daily | Monthly | ||||||
Short-Intermediate U.S. Government | Daily | Monthly | ||||||
Tax-Advantaged Ultra-Short Fixed Income | Daily | Monthly | ||||||
Ultra-Short Fixed Income | Daily | Monthly | ||||||
U.S. Government | Daily | Monthly |
Distributions of net realized capital gains, if any, are declared and paid at least annually. Distributions to shareholders are recorded on the ex-dividend date.
Income dividends and capital gains distributions are determined in accordance with federal income tax regulations. Such amounts may differ from income and capital gains recorded in accordance with U.S. GAAP. Accordingly, the Funds may periodically make reclassifications among certain of their capital accounts to reflect differences between financial reporting and federal income tax basis distributions. The reclassifications are reported in order to reflect the tax treatment for certain permanent differences that exist between income tax regulations and U.S. GAAP. These reclassifications relate to net operating losses, Section 988 currency gains and losses, and paydowns. These reclassifications have no impact on the net assets or the net asset values per share of the Funds. At March 31, 2014, the following reclassifications were recorded:
Amounts in thousands | UNDISTRIBUTED NET INVESTMENT INCOME | ACCUMULATED UNDISTRIBUTED NET REALIZED GAINS (LOSSES) | CAPITAL STOCK | |||||||||
Core Bond | $113 | $(113 | ) | $ — | ||||||||
Fixed Income | 2,360 | (2,374 | ) | 14 | ||||||||
Short Bond | 213 | (189 | ) | (24 | ) | |||||||
Short-Intermediate U.S. Government | $293 | $(293 | ) | $ — | ||||||||
U.S. Government | 37 | (37 | ) | — |
K) FEDERAL INCOME TAXES No provision for federal income taxes has been made since each Fund’s policy is to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute, each year, substantially all of its taxable income and capital gains to its shareholders.
For the period subsequent to October 31, 2013 through the fiscal year ended March 31, 2014, the following Funds incurred net capital losses and/or net currency losses for which each Fund intends to treat as having been incurred in the following fiscal year (in thousands):
Core Bond | $30 | |||
Fixed Income | 2,515 | |||
Short-Intermediate U.S. Government | 28 | |||
U.S. Government | 71 |
The Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated the eight-year limit on the use of capital loss carryforwards that arise in taxable years beginning after its enactment date of December 22, 2010. The changes became effective for the Funds for the fiscal year ended March 31, 2012 and for the predecessor funds of the Core Bond Fund and the Short Bond Fund, the fiscal year ended November 30, 2012. Consequently, capital losses incurred by the Funds in taxable years beginning with the taxable year ended March 31, 2012 or November 30, 2012, as applicable, can be carried forward for an unlimited period. However, capital losses incurred by the Funds in taxable years beginning before the taxable year ended March 31, 2012 or November 30, 2012, as applicable, with an expiration date may not be used to offset capital gains until all net capital losses incurred in taxable years beginning with the taxable year ended March 31, 2012 or November 30, 2012, as applicable, without an expiration date have been utilized. As a result, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The Funds’ ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
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At March 31, 2014, the capital loss carryforwards for U.S. Federal income tax purposes and their respective years of expiration are as follows (in thousands):
Fund | MARCH 31, 2015 | MARCH 31, 2016 | ||||||
Short Bond | $308 | $932 |
The Fund in the above table may offset future capital gains with these capital loss carryforwards.
Capital losses incurred that will be carried forward indefinitely under the provisions of the Act are as follows:
Post-enactment losses
Amounts in thousands | SHORT-TERM CAPITAL LOSS CARRYFORWARD | LONG-TERM CAPITAL LOSS CARRYFORWARD | ||||||
Core Bond | $626 | $ — | ||||||
Fixed Income | 20,004 | — | ||||||
Short Bond | 321 | — | ||||||
Short-Intermediate U.S. Government | 3,009 | 420 | ||||||
U.S. Government | 1,008 | 92 |
At March 31, 2014, the tax components of undistributed net investment income, undistributed realized gains and unrealized gains (losses) were as follows:
Amounts in thousands | UNDISTRIBUTED | |||||||||||||||
TAX-EXEMPT INCOME | ORDINARY INCOME* | LONG-TERM CAPITAL GAINS | UNREALIZED GAINS (LOSSES) | |||||||||||||
Core Bond | $ — | $48 | $ — | $1,107 | ||||||||||||
Fixed Income | — | 68 | — | 31,985 | ||||||||||||
High Yield Fixed Income | — | 13,607 | 39,398 | 188,566 | ||||||||||||
Short Bond | — | — | — | 98 | ||||||||||||
Short-Intermediate U.S. Government | — | 27 | — | (922 | ) | |||||||||||
Tax-Advantaged Ultra-Short Fixed Income | 39 | 389 | 125 | 8,229 | ||||||||||||
Ultra-Short Fixed Income | — | 399 | 176 | 5,039 | ||||||||||||
U.S. Government | — | 99 | — | (173 | ) |
* | Ordinary income includes taxable market discount income and short-term capital gains, if any. |
The tax character of distributions paid during the fiscal year ended March 31, 2014, was as follows:
DISTRIBUTIONS FROM | ||||||||||||
Amounts in thousands | TAX-EXEMPT INCOME | ORDINARY INCOME* | LONG-TERM CAPITAL GAINS | |||||||||
Core Bond | $ — | $2,109 | $107 | |||||||||
Fixed Income | — | 52,794 | 8,113 | |||||||||
High Yield Fixed Income | — | 350,869 | 97,882 | |||||||||
Short Bond | — | 5,157 | — | |||||||||
Short-Intermediate U.S. Government | — | 1,064 | — | |||||||||
Tax-Advantaged Ultra-Short Fixed Income | 6,841 | 7,715 | 542 | |||||||||
Ultra-Short Fixed Income | — | 9,584 | 470 | |||||||||
U.S. Government | — | 304 | — |
* | Ordinary income includes taxable market discount income and short-term capital gains, if any. |
The tax character of distributions paid during the fiscal year and period ended March 31, 2013, was as follows:
DISTRIBUTIONS FROM | ||||||||||||
Amounts in thousands | TAX-EXEMPT INCOME | ORDINARY INCOME* | LONG-TERM CAPITAL GAINS | |||||||||
Core Bond | $ — | $2,184 | $749 | |||||||||
Fixed Income | — | 79,197 | 7,036 | |||||||||
High Yield Fixed Income | — | 405,683 | — | |||||||||
Short Bond | — | 798 | — | |||||||||
Short-Intermediate U.S. Government | — | 8,408 | 898 | |||||||||
Tax-Advantaged Ultra-Short Fixed Income | 6,803 | 5,708 | — | |||||||||
Ultra-Short Fixed Income | — | 6,667 | 766 | |||||||||
U.S. Government | — | 2,073 | 31 |
* | Ordinary income includes taxable market discount income and short-term capital gains, if any. |
As of March 31, 2014, no Fund had uncertain tax positions that would require financial statement recognition or disclosure. The Funds’ federal tax returns filed for the fiscal years ended March 31, 2011 through March 31, 2013, or November 30, 2011 through November 30, 2012, as applicable, remain subject to examination by the Internal Revenue Service. Interest or penalties incurred, if any, on future unknown, uncertain tax positions taken by the Funds will be recorded as Interest expense on the Statements of Operations.
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3. SERVICE PLAN
The Trust has adopted a Service Plan pursuant to which the Trust may enter into agreements with Northern Trust, its affiliates or other institutions (“Service Organizations”) under which the Service Organizations agree to provide certain administrative support services and, in some cases, personal and account maintenance services for their customers, who are beneficial owners of shares of the Funds. As compensation for services provided pursuant to the Service Plan, the Service Organizations receive a fee at an annual rate of up to 0.25 percent of the average daily net assets of the Funds beneficially owned by their customers. There were no shareholder servicing fees paid to Northern Trust or its affiliates during the six months ended September 30, 2014.
These expenses are included in the Statements of Operations under Shareholder servicing fees for the six months ended September 30, 2014.
4. BANK BORROWINGS
The Trust entered into a $150,000,000 senior unsecured revolving credit facility on November 25, 2013, which is administered by JPMorgan Chase Bank, N.A., for liquidity and other purposes (the “Credit Facility”). The interest rate charged under the Credit Facility is equal to the sum of (i) the Federal Funds Rate plus (ii) if the one-month London Interbank Offered Rate (“LIBOR”) on the date of borrowing exceeds such Federal Funds Rate, the amount by which it so exceeds, plus (iii) 1.00 percent. In addition, there is an annual commitment fee of 0.07 percent on the unused portion of the credit line under the Credit Facility, payable quarterly in arrears, which is included in Other expenses on the Statements of Operations.
At a meeting held on November 20, 2014, the Board approved an agreement that terminated, replaced and restated the Credit Facility (as so terminated, replaced and restated, the “New Credit Facility”). The New Credit Facility is in the amount of $250,000,000. The interest rate charged under the New Credit Facility is the same as it was for the Credit Facility. In addition, there is an annual commitment fee of 0.08 percent on the unused portion of the credit line under the New Credit Facility, payable quarterly in arrears. The New Credit Facility is anticipated to go into effect on November 24, 2014 and will expire on November 23, 2015, unless renewed.
At September 30, 2014, the Funds did not have any outstanding loans.
When utilized, the average dollar amount of the High Yield Fixed Income Fund’s borrowings were $98,400,000, and the weighted average interest rates on these borrowings were 1.16 percent for the six months ended September 30, 2014. No other Funds incurred any interest expenses during the six months ended September 30, 2014.
5. MANAGEMENT AND OTHER AGREEMENTS
Shareholders of each Fund have approved a new management agreement, effective June 30, 2014, between the Fund and NTI (the “Management Agreement”), to provide the Fund with investment advisory and administration services under a single agreement and fee structure. As compensation for advisory and administration services and the assumption of related expenses, NTI is entitled to a management fee, computed daily and payable monthly, at annual rates set forth in the first table below (expressed as a percentage of each Fund’s respective average daily net assets). Prior to June 30, 2014, as compensation for advisory services and the assumption of related expenses, NTI was entitled to an advisory fee, computed daily and payable monthly, at annual rates set forth in the second table below (expressed as a percentage of each Fund’s respective average daily net assets.) Prior to June 30, 2014, NTI, as administrator, was also entitled to an administration fee from the Funds at the annual rate of 0.15% of the average daily net assets of each Fund.
NTI has contractually agreed to reimburse a portion of the operating expenses of each Fund (other than acquired fund fees and expenses, the Fund’s proportionate share of the increase in compensation paid to each disinterested Trustee, expenses related to third-party consultants engaged by the Board of Trustees of the Trust, membership dues paid to the Investment Company Institute and Mutual Fund Directors Forum, and extraordinary expenses and interest) as shown on the accompanying Statements of Operations, to adhere to the expense limitations set forth below. The amount of the reimbursement is included in Less expenses reimbursed by investment adviser as a reduction to Total Expenses in the Statements of Operations.
As of September 30, 2014, the annual management fees and contractual expense limitations for the Funds were based on the following annual rates as set forth in the table below.
CONTRACTUAL ANNUAL MANAGEMENT FEES | CONTRACTUAL EXPENSE LIMITATIONS | |||||||||||||||
FIRST $1.5 BILLION | NEXT $1 BILLION | OVER $2.5 BILLION | ||||||||||||||
Core Bond | 0.38% | 0.369% | 0.358% | 0.40% | ||||||||||||
Fixed Income | 0.43% | 0.417% | 0.404% | 0.45% | ||||||||||||
High Yield Fixed Income | 0.79% | 0.766% | 0.743% | 0.80% | ||||||||||||
Short Bond | 0.38% | 0.369% | 0.358% | 0.40% | ||||||||||||
Short-Intermediate U.S. Government | 0.38% | 0.369% | 0.358% | 0.40% | ||||||||||||
Tax-Advantaged Ultra-Short Fixed Income | 0.23% | 0.223% | 0.216% | 0.25% |
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CONTRACTUAL ANNUAL MANAGEMENT FEES | CONTRACTUAL EXPENSE LIMITATIONS | |||||||||||||||
FIRST $1.5 BILLION | NEXT $1 BILLION | OVER $2.5 BILLION | ||||||||||||||
Ultra-Short Fixed Income | 0.23% | 0.223% | 0.216% | 0.25% | ||||||||||||
U.S. Government | 0.38% | 0.369% | 0.358% | 0.40% |
Prior to June 30, 2014, the annual advisory fees for the Funds were based on the following annual rates as set forth in the table below. There was no change to the contractual expense limitations described above.
CONTRACTUAL ANNUAL ADVISORY FEES | ||||||||||||
FIRST $1.5 BILLION | NEXT $1 BILLION | OVER $2.5 BILLION | ||||||||||
Core Bond | 0.40% | 0.38% | 0.36% | |||||||||
Fixed Income | 0.40% | 0.38% | 0.36% | |||||||||
High Yield Fixed Income | 0.70% | 0.66% | 0.63% | |||||||||
Short Bond | 0.40% | 0.38% | 0.36% | |||||||||
Short-Intermediate U.S. Government | 0.40% | 0.38% | 0.36% | |||||||||
Tax-Advantaged Ultra-Short Fixed Income | 0.15% | 0.141% | 0.135% | |||||||||
Ultra-Short Fixed Income | 0.15% | 0.141% | 0.135% | |||||||||
U.S. Government | 0.70% | 0.66% | 0.63% |
The contractual reimbursement arrangements described above are expected to continue until at least July 31, 2015. The contractual reimbursement arrangements will continue automatically for periods of one year (each such one year period, a “Renewal Year”). The arrangements may be terminated, as to any succeeding Renewal Year, by NTI or a Fund upon 60 days’ written notice prior to the end of the current Renewal Year. The Board may terminate the contractual arrangements at any time with respect to a Fund if it determines that it is in the best interest of the Fund and its shareholders.
Effective June 30, 2014, as compensation for services rendered as transfer agent, including the assumption by Northern Trust of the expenses related thereto, Northern Trust receives a fee, computed daily and payable monthly, at an annual rate of 0.015 percent of the average daily net assets of the Funds. Prior to June 30, 2014, Northern Trust received transfer agent fees at an annual rate of 0.10 percent of the average daily net assets, accrued daily and payable monthly. The transfer agent fees are reflected in the Funds’ Statements of Operations.
NTI has a sub-administration agreement with Northern Trust, pursuant to which Northern Trust performs certain administrative services for the Funds. NTI pays Northern Trust for its sub-administration services out of NTI’s management fees. Prior to June 30, 2014, these sub-administration services were paid out of NTI’s administration fees.
For compensation as custodian, Northern Trust receives an amount based on a pre-determined schedule of charges approved by the Board. The Funds have entered into an expense off-set arrangement with the custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Funds’ custodian expenses. Custodian credits, if any, are reflected as Less custodian credits in the Funds’ Statements of Operations.
Northern Funds Distributors, LLC, the distributor for the Funds, received no compensation from the Funds under its distribution agreement. However, it received compensation from NTI for its services as distributor pursuant to a separate letter agreement between it and NTI.
Certain officers of the Trust are also officers of Northern Trust and NTI. All officers serve without compensation from the Funds. The Trust provided a deferred compensation plan for its Trustees who are not officers of Northern Trust or NTI. Prior to August 22, 2013, under the deferred compensation plan, Trustees may have elected to defer all or a portion of their compensation. Effective August 22, 2013, the Trustees may no longer defer their compensation. Any amounts deferred and invested under the plan shall remain invested pursuant to the terms of the plan. Each Trustee’s account shall be deemed to be invested in shares of the Diversified Assets Portfolio of Northern Institutional Funds and/or the Global Tactical Asset Allocation Fund of the Trust and/or at the discretion of the Trust, another money market fund selected by the Trust that complies with the provisions of Rule 2a-7 under the 1940 Act or one or more short-term fixed income instruments selected by the Trust that are “eligible securities” as defined by that rule. The net investment income, gains and losses achieved by such deemed investment shall be credited to the Trustee’s account as provided in the plan.
6. RELATED PARTY TRANSACTIONS
The Funds currently invest uninvested cash in the Diversified Assets Portfolio, the U.S. Government Portfolio or the Tax Exempt Portfolio (the “Portfolios”) of Northern Institutional Funds, an investment company which is advised by NTI, pursuant to the terms of an exemptive order issued by the SEC. The Core Bond, Fixed Income, High Yield Fixed Income, Short Bond and Ultra-Short Fixed Income Funds currently invest uninvested cash in the Diversified Assets Portfolio; the Short-Intermediate U.S. Government and U.S. Government Funds currently invest uninvested cash in the U.S. Government Portfolio; and the Tax-Advantaged Ultra-Short Fixed Income Fund currently invests uninvested cash in the Tax Exempt Portfolio. Accordingly, each
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FIXED INCOME FUNDS
NOTES TO THE FINANCIAL STATEMENTS continued
Fund bears indirectly a proportionate share of the applicable Portfolio’s operating expenses. These operating expenses include the management, transfer agency and custody fees that the Portfolios pay to NTI and/or its affiliates. Currently, the aggregate annual rate of management, transfer agency and custody fees payable to NTI and/or its affiliates on any assets invested in the Diversified Assets Portfolio, U.S. Government Portfolio or the Tax Exempt Portfolio is 0.35 percent of average daily net assets. However, pursuant to the exemptive order, NTI will reimburse each Fund for advisory fees otherwise payable by the Fund on any assets invested in an affiliated money market fund. This reimbursement is included in Less expenses reimbursed by investment adviser as a reduction to Total Expenses in the Statements of Operations. This reimbursement’s impact on each Fund’s net expense and net investment income ratios is included in each Fund’s Financial Highlights. The exemptive order requires the Funds’ Board to determine before a vote on the Management Agreement that the advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds are not for duplicative services.
7. INVESTMENT TRANSACTIONS
For the six months ended September 30, 2014, the aggregate costs of purchases and proceeds from sales of securities (excluding short-term investments) for the Funds were as follows:
PURCHASES | SALES | |||||||||||||||
Amounts in thousands | U.S. GOVERNMENT | OTHER | U.S. GOVERNMENT | OTHER | ||||||||||||
Core Bond | $546,556 | $50,996 | $489,479 | $24,936 | ||||||||||||
Fixed Income | 3,631,782 | 185,636 | 3,495,227 | 290,298 | ||||||||||||
High Yield Fixed Income | — | 2,032,413 | — | 2,534,997 | ||||||||||||
Short Bond | 383,725 | 121,881 | 385,731 | 66,640 | ||||||||||||
Short-Intermediate U.S. Government | 591,060 | — | 623,654 | — | ||||||||||||
Tax-Advantaged Ultra-Short Fixed Income | 179,683 | 636,287 | 9,989 | 465,692 | ||||||||||||
Ultra-Short Fixed Income | $142,348 | $458,948 | $146,889 | $437,076 | ||||||||||||
U.S. Government | 80,738 | — | 88,145 | — |
The difference between book basis and tax basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains on certain foreign currency contracts, the deferral of post-October currency and capital losses for tax purposes, and the timing of income recognition on investments in real estate investment trusts and passive foreign investment companies.
At September 30, 2014, for federal income 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:
Amounts in thousands | UNREALIZED APPRECIATION | UNREALIZED DEPRECIATION | NET APPRECIATION (DEPRECIATION) | COST BASIS OF SECURITIES | ||||||||||||
Core Bond | $2,048 | $(612 | ) | $1,436 | $195,940 | |||||||||||
Fixed Income | 37,369 | (8,272 | ) | 29,097 | 1,581,592 | |||||||||||
High Yield Fixed Income | 80,156 | (68,376 | ) | 11,780 | 5,130,410 | |||||||||||
Short Bond | 1,020 | (3,021 | ) | (2,001 | ) | 510,599 | ||||||||||
Short-Intermediate U.S. Government | 134 | (907 | ) | (773 | ) | 195,100 | ||||||||||
Tax-Advantaged Ultra-Short Fixed Income | 9,021 | (710 | ) | 8,311 | 3,119,141 | |||||||||||
Ultra-Short Fixed Income | 5,206 | (1,068 | ) | 4,138 | 1,718,013 | |||||||||||
U.S. Government | 63 | (185 | ) | (122 | ) | 30,246 |
8. CAPITAL SHARE TRANSACTIONS
Transactions in capital shares for the six months ended September 30, 2014 were as follows:
Amounts in thousands | SHARES SOLD | PROCEEDS FROM SHARES SOLD | SHARES FROM REINVESTED DIVIDENDS | REINVESTMENT OF DIVIDENDS | SHARES REDEEMED | PAYMENTS FOR SHARES REDEEMED | NET INCREASE (DECREASE) IN SHARES | NET INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
Core Bond | 7,824 | $81,185 | 44 | $455 | (773 | ) | $(8,029 | ) | 7,095 | $73,611 | ||||||||||||||||||||||
Fixed Income | 12,003 | 124,327 | 330 | 3,423 | (11,937 | ) | (123,577 | ) | 396 | 4,173 | ||||||||||||||||||||||
High Yield Fixed Income | 69,387 | 527,497 | 2,812 | 21,461 | (129,482 | ) | (982,745 | ) | (57,283 | ) | (433,787 | ) |
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FIXED INCOME FUNDS
SEPTEMBER 30, 2014 (UNAUDITED) |
Amounts in thousands | SHARES SOLD | PROCEEDS FROM SHARES SOLD | SHARES FROM REINVESTED DIVIDENDS | REINVESTMENT OF DIVIDENDS | SHARES REDEEMED | PAYMENTS FOR SHARES REDEEMED | NET INCREASE (DECREASE) IN SHARES | NET INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
Short Bond | 9,141 | $ 174,775 | 55 | $ | 1,052 | (5,363 | ) | $ | (102,574 | ) | 3,833 | $ 73,253 | ||||||||||||||||||||
Short-Intermediate U.S. Government | 1,032 | 10,119 | 22 | 217 | (3,440 | ) | (33,711 | ) | (2,386 | ) | (23,375 | ) | ||||||||||||||||||||
Tax-Advantaged Ultra-Short Fixed Income | 107,791 | 1,095,364 | 109 | 1,104 | (78,411 | ) | (796,812 | ) | 29,489 | 299,656 | ||||||||||||||||||||||
Ultra-Short Fixed Income | 57,992 | 593,418 | 216 | 2,213 | (57,076 | ) | (584,051 | ) | 1,132 | 11,580 | ||||||||||||||||||||||
U.S. Government | 202 | 1,942 | 6 | 54 | (609 | ) | (5,831 | ) | (401 | ) | (3,835 | ) |
Transactions in capital shares for the fiscal year ended March 31, 2014 were as follows:
Amounts in thousands | SHARES SOLD | PROCEEDS FROM SHARES SOLD | SHARES FROM REINVESTED DIVIDENDS | REINVESTMENT OF DIVIDENDS | SHARES REDEEMED | PAYMENTS FOR SHARES REDEEMED | NET INCREASE (DECREASE) IN SHARES | NET INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
Core Bond | 6,490 | $66,972 | 146 | $1,496 | (3,854 | ) | $(39,635 | ) | 2,782 | $28,833 | ||||||||||||||||||||||
Fixed Income | 31,041 | 317,664 | 1,442 | 14,662 | (53,577 | ) | (547,139 | ) | (21,094 | ) | (214,813 | ) | ||||||||||||||||||||
High Yield Fixed Income | 188,641 | 1,429,036 | 17,466 | 131,215 | (223,433 | ) | (1,694,016 | ) | (17,326 | ) | (133,765 | ) | ||||||||||||||||||||
Short Bond | 18,920 | 361,790 | 112 | 2,144 | (12,019 | ) | (229,621 | ) | 7,013 | 134,313 | ||||||||||||||||||||||
Short-Intermediate U.S. Government | 4,657 | 45,708 | 39 | 388 | (9,349 | ) | (91,918 | ) | (4,653 | ) | (45,822 | ) | ||||||||||||||||||||
Tax-Advantaged Ultra-Short Fixed Income | 198,406 | 2,014,220 | 289 | 2,938 | (141,158 | ) | (1,432,890 | ) | 57,537 | 584,268 | ||||||||||||||||||||||
Ultra-Short Fixed Income | 123,978 | 1,266,443 | 359 | 3,672 | (65,725 | ) | (671,414 | ) | 58,612 | 598,701 | ||||||||||||||||||||||
U.S. Government | 221 | 2,134 | 12 | 112 | (1,700 | ) | (16,361 | ) | (1,467 | ) | (14,115 | ) |
9. DERIVATIVE INSTRUMENTS
None of the derivatives held in the Funds have been designated as hedging instruments. Information concerning the types of derivatives in which the Funds invest, the objectives for using them and their related risks can be found in Note 2.
Below are the types of derivatives by primary risk exposure as presented in the Statement of Assets and Liabilities as of September 30, 2014:
Amounts in thousands | ASSETS | LIABILITIES | ||||||||||||
FUND NAME | DERIVATIVE TYPE | STATEMENTS OF ASSETS AND LIABILITIES LOCATION | VALUE | STATEMENTS OF ASSETS AND LIABILITIES LOCATION | VALUE | |||||||||
Short Bond | Interest rate contracts | Net Assets — Unrealized appreciation | $ | 113 | * | Net unrealized depreciation | $(8)* | |||||||
Short-Intermediate U.S. Government | Interest rate contracts | Net Assets — Unrealized appreciation | 17 | * | Net unrealized depreciation | (10)* | ||||||||
U.S. Government | Interest rate contracts | Net Assets — Unrealized appreciation | — | Net unrealized depreciation | (2)* |
* | Includes cumulative appreciation/depreciation on futures contracts as reported in the Schedule of Investments footnotes. Only the current day’s variation margin is reported in the Statements of Assets and Liabilities. |
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NOTES TO THE FINANCIAL STATEMENTS continued | SEPTEMBER 30, 2014 (UNAUDITED) |
The following tables set forth by primary risk exposure the Funds’ realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the six months ended September 30, 2014:
Amounts in thousands | AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVE CONTRACTS | ||||||||
FUND NAME | DERIVATIVE TYPE | STATEMENTS OF OPERATIONS LOCATION | VALUE | ||||||
Core Bond | Interest rate contracts | Net realized gains (losses) on futures contracts | $105 | ||||||
Fixed Income | Interest rate contracts | Net realized gains (losses) on futures contracts | (769 | ) | |||||
Short Bond | Interest rate contracts | Net realized gains (losses) on futures contracts | (329 | ) | |||||
Short-Intermediate U.S. Government | Interest rate contracts | Net realized gains (losses) on futures contracts | (237 | ) | |||||
U.S. Government | Interest rate contracts | Net realized gains (losses) on futures contracts | (15 | ) | |||||
Amounts in thousands | CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVE CONTRACTS | ||||||||
FUND NAME | DERIVATIVE TYPE | STATEMENTS OF OPERATIONS LOCATION | VALUE | ||||||
Core Bond | Interest rate contracts | Net change in unrealized appreciation (depreciation) | $17 | ||||||
Fixed Income | Interest rate contracts | Net change in unrealized appreciation (depreciation) | 38 | ||||||
Short Bond | Interest rate contracts | Net change in unrealized appreciation (depreciation) | (139 | ) | |||||
Short-Intermediate U.S. Government | Interest rate contracts | Net change in unrealized appreciation (depreciation) | (8 | ) | |||||
U.S. Government | Interest rate contracts | Net change in unrealized appreciation (depreciation) | (2 | ) |
Volume of derivative activity for the six months ended September 30, 2014*:
FUTURES INTEREST RATE CONTRACTS | ||||||||
NUMBER OF TRADES | AVERAGE NOTIONAL AMOUNT** | |||||||
Core Bond | 8 | $1,787 | ||||||
Fixed Income | 8 | 23,265 | ||||||
Short Bond | 8 | 24,842 | ||||||
Short-Intermediate U.S. Government | 21 | 6,791 | ||||||
U.S. Government | 15 | 1,139 |
* | Activity during the period is measured by number of trades during the period and average notional amount for futures interest rate contracts. |
** | Amounts in thousands. |
10. INDEMNIFICATIONS AND WARRANTIES
In the ordinary course of their business, the Funds may enter into contracts or agreements that contain indemnifications or warranties. Future events could occur that lead to the execution of these provisions against the Funds. The maximum exposure to the Funds under these provisions is unknown, as this would involve future claims that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and believe the risk of loss to be remote.
11. SUBSEQUENT EVENTS
Management has evaluated subsequent events for the Funds through the date the financial statements were issued, and has concluded that there are no recognized or non-recognized subsequent events relevant for financial statement disclosure.
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FIXED INCOME FUNDS
SEPTEMBER 30, 2014 (UNAUDITED) |
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, if any, including redemption fees on certain exchanges and redemptions in the High Yield Fixed Income Fund; and (2) ongoing costs, including advisory fees and other fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, April 1, 2014 through September 30, 2014.
ACTUAL EXPENSES
The first line of the tables below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid 4/1/14 - 9/30/14” to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the tables below provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5 percent per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5 percent hypothetical example with the 5 percent hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads), redemption fees, or exchange fees or other costs such as advisory fees related to affiliated money market funds investments, but shareholders of other funds may incur such costs. For example, the information does not reflect redemption fees (as described on page 99), if any, in the High Yield Fixed Income Fund. If these fees were included, your costs would have been higher. The information also does not reflect reimbursements on advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds (as described on page 103), which may result in different expense ratios in the Financial Highlights. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
CORE BOND
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/14 | ENDING ACCOUNT VALUE 9/30/14 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.41 | % | $ | 1,000.00 | $ | 1,022.80 | $ | 2.08 | ||||||||
Hypothetical** | 0.41 | % | $ | 1,000.00 | $ | 1,023.01 | $ | 2.08 |
FIXED INCOME
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/14 | ENDING ACCOUNT VALUE 9/30/14 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.45 | % | $ | 1,000.00 | $ | 1,022.40 | $ | 2.28 | ||||||||
Hypothetical** | 0.45 | % | $ | 1,000.00 | $ | 1,022.81 | $ | 2.28 |
HIGH YIELD FIXED INCOME
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/14 | ENDING ACCOUNT VALUE 9/30/14 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.80 | % | $ | 1,000.00 | $ | 1,004.80 | $ | 4.02 | ||||||||
Hypothetical** | 0.80 | % | $ | 1,000.00 | $ | 1,021.06 | $ | 4.05 |
SHORT BOND
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/14 | ENDING ACCOUNT VALUE 9/30/14 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.40 | % | $ | 1,000.00 | $ | 1,001.90 | $ | 2.01 | ||||||||
Hypothetical** | 0.40 | % | $ | 1,000.00 | $ | 1,023.06 | $ | 2.03 |
SHORT-INTERMEDIATE U.S. GOVERNMENT
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/14 | ENDING ACCOUNT VALUE 9/30/14 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.40 | % | $ | 1,000.00 | $ | 1,005.80 | $ | 2.01 | ||||||||
Hypothetical** | 0.40 | % | $ | 1,000.00 | $ | 1,023.06 | $ | 2.03 |
* | Expenses are calculated using the Funds’ annualized expense ratios, which represent ongoing expenses as a percentage of net assets for the six months ended September 30, 2014. Expenses are calculated by multiplying the annualized expense ratio by the average account value over the period; then multiplying the result by the number of days in the most recent fiscal half year (183); and then dividing that result by the number of days in the current fiscal year (365). |
** | Hypothetical expenses are based on the Funds’ actual annualized expense ratios and an assumed rate of return of 5 percent per year before expenses. |
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FIXED INCOME FUNDS
FUND EXPENSES continued | SEPTEMBER 30, 2014 (UNAUDITED) |
TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/14 | ENDING ACCOUNT VALUE 9/30/14 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.25 | % | $ | 1,000.00 | $ | 1,002.70 | $ | 1.26 | ||||||||
Hypothetical** | 0.25 | % | $ | 1,000.00 | $ | 1,023.82 | $ | 1.27 |
ULTRA-SHORT FIXED INCOME
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/14 | ENDING ACCOUNT VALUE 9/30/14 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.25 | % | $ | 1,000.00 | $ | 1,003.70 | $ | 1.26 | ||||||||
Hypothetical** | 0.25 | % | $ | 1,000.00 | $ | 1,023.82 | $ | 1.27 |
U.S. GOVERNMENT
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/14 | ENDING ACCOUNT VALUE 9/30/14 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.43 | % | $ | 1,000.00 | $ | 1,010.50 | $ | 2.17 | ||||||||
Hypothetical** | 0.43 | % | $ | 1,000.00 | $ | 1,022.91 | $ | 2.18 |
* | Expenses are calculated using the Funds' annualized expense ratios, which represent ongoing expenses as a percentage of net assets for the six months ended September 30, 2014. Expenses are calculated by multiplying the annualized expense ratio by the average account value over the period; then multiplying the result by the number of days in the most recent fiscal half year (183); and then dividing that result by the number of days in the current fiscal year (365). |
** | Hypothetical expenses are based on the Funds’ actual annualized expense ratios and an assumed rate of return of 5 percent per year before expenses. |
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PORTFOLIO HOLDINGS
Northern Funds files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s Web site at sec.gov. You may also review and obtain copies at the SEC’s Public Reference Room in Washington, D.C. Information about the Public Reference Room may be obtained by calling 800-SEC-0330.
PROXY VOTING
Northern Funds’ Proxy Voting Policies and Procedures and each Fund’s portfolio securities voting record for the 12-month period ended June 30 are available upon request and without charge by visiting Northern Funds’ Web site at northernfunds.com or the SEC’s Web site at sec.gov or by calling the Northern Funds Center at 800-595-9111.
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2 | ||||
3 | ||||
4 | ||||
5 | ||||
7 | ||||
7 | ||||
72 | ||||
75 | ||||
76 | ||||
84 | ||||
88 |
The 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.
This report contains 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 forward-looking 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.
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
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FIXED INCOME INDEX FUNDS
STATEMENTS OF ASSETS AND LIABILITIES | SEPTEMBER 30, 2014 (UNAUDITED) |
Amounts in thousands, except per share data | BOND INDEX FUND | U.S. TREASURY INDEX FUND | ||||||
ASSETS: | ||||||||
Investments, at cost | $2,256,416 | (1) | $87,569 | (2) | ||||
Investments, at value | $2,327,076 | (3) | $88,367 | (4) | ||||
Interest income receivable | 12,819 | 343 | ||||||
Dividend income receivable | 1 | – | ||||||
Receivable for securities sold | 4,703 | 1,625 | ||||||
Receivable for fund shares sold | 1,633 | 699 | ||||||
Receivable from affiliated administrator | 8 | 2 | ||||||
Prepaid and other assets | 17 | 9 | ||||||
Total Assets | 2,346,257 | 91,045 | ||||||
LIABILITIES: | ||||||||
Payable for securities purchased | 19,157 | 248 | ||||||
Payable for when-issued securities | 72,198 | – | ||||||
Payable for variation margin on futures contracts | – | 1 | ||||||
Payable for fund shares redeemed | 1,770 | – | ||||||
Distributions payable to shareholders | 990 | 28 | ||||||
Payable to affiliates: | ||||||||
Management fees (Note 5) | 48 | 3 | ||||||
Custody and accounting fees | 7 | 2 | ||||||
Shareholder servicing fees | 9 | – | ||||||
Transfer agent fees | 6 | – | ||||||
Trustee fees | 15 | 6 | ||||||
Accrued other liabilities | 40 | 16 | ||||||
Total Liabilities | 94,240 | 304 | ||||||
Net Assets | $2,252,017 | $90,741 | ||||||
ANALYSIS OF NET ASSETS: | ||||||||
Capital stock | $2,180,811 | $89,766 | ||||||
Accumulated undistributed net investment loss | (1,854 | ) | (12 | ) | ||||
Accumulated undistributed net realized gain | 2,400 | 198 | ||||||
Net unrealized appreciation | 70,660 | 789 | ||||||
Net Assets | $2,252,017 | $90,741 | ||||||
Shares Outstanding ($.0001 par value, unlimited authorization) | 211,865 | 4,194 | ||||||
Net Asset Value, Redemption and Offering Price Per Share | $10.63 | $21.63 |
(1) | Amounts include cost from the Diversified Assets Portfolio of the Northern Institutional Funds of $89,523. |
(2) | Amounts include cost from the U.S. Government Portfolio of the Northern Institutional Funds of $516. |
(3) | Amounts include value from the Diversified Assets Portfolio of the Northern Institutional Funds of $89,523. |
(4) | Amounts include value from the U.S. Government Portfolio of the Northern Institutional Funds of $516. |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 2 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
FIXED INCOME INDEX FUNDS
STATEMENTS OF OPERATIONS | SIX MONTHS ENDED SEPTEMBER 30, 2014 | (UNAUDITED) |
Amounts in thousands | BOND INDEX FUND | U.S. TREASURY INDEX FUND | ||||||
INVESTMENT INCOME: | ||||||||
Interest income | $30,164 | $830 | ||||||
Dividend income | 4 | (1) | – | (2) | ||||
Total Investment Income | 30,168 | 830 | ||||||
EXPENSES: | ||||||||
Management fees (Note 5) | 741 | 37 | ||||||
Investment advisory fees (Note 5) | 831 | 85 | ||||||
Administration fees (Note 5) | 831 | 42 | ||||||
Custody fees | 127 | 12 | ||||||
Accounting fees | 60 | 8 | ||||||
Transfer agent fees | 640 | 33 | ||||||
Blue sky fees | 21 | 10 | ||||||
SEC fees | 6 | 2 | ||||||
Printing fees | 18 | 7 | ||||||
Professional fees | 28 | 17 | ||||||
Shareholder servicing fees | 59 | – | ||||||
Trustee fees | 26 | 9 | ||||||
Other | 15 | 5 | ||||||
Total Expenses | 3,403 | 267 | ||||||
Less expenses reimbursed by investment adviser | (1,714 | ) | (177 | ) | ||||
Net Expenses | 1,689 | 90 | ||||||
Net Investment Income | 28,479 | 740 | ||||||
NET REALIZED AND UNREALIZED GAINS (LOSSES): | ||||||||
Net realized gains on: | ||||||||
Investments | 6,630 | 325 | ||||||
Futures contracts | – | 17 | ||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||
Investments | 14,384 | 726 | ||||||
Futures contracts | – | 15 | ||||||
Net Gains | 21,014 | 1,083 | ||||||
Net Increase in Net Assets Resulting from Operations | $49,493 | $1,823 |
(1) | Amounts include dividend income from the Diversified Assets Portfolio of the Northern Institutional Funds of $4. |
(2) | Amounts include dividend income from the U.S. Government Portfolio of the Northern Institutional Funds which rounds to less than $1. |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 3 | FIXED INCOME INDEX FUNDS |
Table of Contents
FIXED INCOME INDEX FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
BOND INDEX FUND | U.S. TREASURY INDEX FUND | |||||||||||||||
Amounts in thousands | SIX MONTHS SEPT. 30, | FISCAL YEAR ENDED | SIX MONTHS SEPT. 30, | FISCAL YEAR ENDED MARCH 31, 2014 | ||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $28,479 | $59,093 | $740 | $1,509 | ||||||||||||
Net realized gains | 6,630 | 5,668 | 342 | 230 | ||||||||||||
Net change in unrealized appreciation (depreciation) | 14,384 | (79,503 | ) | 741 | (3,662 | ) | ||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 49,493 | (14,742 | ) | 1,823 | (1,923 | ) | ||||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Net decrease in net assets resulting from share transactions | (15,691 | ) | (305,747 | ) | (24,595 | ) | (13,168 | ) | ||||||||
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions | (15,691 | ) | (305,747 | ) | (24,595 | ) | (13,168 | ) | ||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (30,327 | ) | (65,201 | ) | (749 | ) | (1,509 | ) | ||||||||
From net realized gains | – | (1,946 | ) | – | (1,298 | ) | ||||||||||
Total Distributions to Shareholders | (30,327 | ) | (67,147 | ) | (749 | ) | (2,807 | ) | ||||||||
Total Increase (Decrease) in Net Assets | 3,475 | (387,636 | ) | (23,521 | ) | (17,898 | ) | |||||||||
NET ASSETS: | ||||||||||||||||
Beginning of period | 2,248,542 | 2,636,178 | 114,262 | 132,160 | ||||||||||||
End of period | $2,252,017 | $2,248,542 | $90,741 | $114,262 | ||||||||||||
Accumulated Undistributed Net Investment Loss | $(1,854 | ) | $(6 | ) | $(12 | ) | $(3 | ) |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 4 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
FIXED INCOME INDEX FUNDS
FINANCIAL HIGHLIGHTS
BOND INDEX FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS SEPT. 30, | FISCAL YEAR ENDED | FISCAL YEAR ENDED | FISCAL YEAR ENDED | FISCAL YEAR ENDED | FISCAL YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $10.54 | $10.87 | $10.86 | $10.46 | $10.39 | $10.14 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.13 | 0.25 | 0.27 | 0.31 | 0.34 | 0.36 | ||||||||||||||||||
Net realized and unrealized gains (losses) | 0.10 | (0.29 | ) | 0.12 | 0.48 | 0.15 | 0.28 | |||||||||||||||||
Total from Investment Operations | 0.23 | (0.04 | ) | 0.39 | 0.79 | 0.49 | 0.64 | |||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income | (0.14 | ) | (0.28 | ) | (0.29 | ) | (0.32 | ) | (0.35 | ) | (0.37 | ) | ||||||||||||
From net realized gains | – | (0.01 | ) | (0.09 | ) | (0.07 | ) | (0.07 | ) | (0.02 | ) | |||||||||||||
Total Distributions Paid | (0.14 | ) | (0.29 | ) | (0.38 | ) | (0.39 | ) | (0.42 | ) | (0.39 | ) | ||||||||||||
Net Asset Value, End of Period | $10.63 | $10.54 | $10.87 | $10.86 | $10.46 | $10.39 | ||||||||||||||||||
Total Return(1) | 2.23 | % | (0.31 | )% | 3.62 | % | 7.65 | % | 4.73 | % | 6.33 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $2,252,017 | $2,248,542 | $2,636,178 | $2,490,348 | $1,960,060 | $1,822,915 | ||||||||||||||||||
Ratio to average net assets of:(2) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 0.15 | %(3) | 0.15 | %(3) | 0.14 | %(3) | 0.21 | %(3) | 0.23 | %(3) | 0.25 | % | ||||||||||||
Expenses, before reimbursements and credits | 0.30 | % | 0.44 | % | 0.44 | % | 0.44 | % | 0.44 | % | 0.43 | % | ||||||||||||
Net investment income, net of reimbursements and credits | 2.53 | %(3) | 2.43 | %(3) | 2.45 | %(3) | 2.86 | %(3) | 3.14 | %(3) | 3.50 | % | ||||||||||||
Net investment income, before reimbursements and credits | 2.38 | % | 2.14 | % | 2.15 | % | 2.63 | % | 2.93 | % | 3.32 | % | ||||||||||||
Portfolio Turnover Rate | 33.75 | % | 88.79 | % | 100.20 | % | 129.27 | % | 121.58 | % | 123.18 | % |
(1) | 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. Total return is not annualized for periods less than one year. |
(2) | Annualized for periods less than one year. |
(3) | 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 $11,000, $101,000, $296,000, $169,000 and $479,000, which represents less than 0.005, 0.005, 0.01, 0.01 and 0.02 percent of average net assets for the six months ended September 30, 2014 and the fiscal years ended March 31, 2014, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 5 | FIXED INCOME INDEX FUNDS |
Table of Contents
FIXED INCOME INDEX FUNDS
FINANCIAL HIGHLIGHTS continued
U.S. TREASURY INDEX FUND | SHARES/CLASS A SHARES | |||||||||||||||||||||||||||
Selected per share data | SIX MONTHS SEPT. 30, | FISCAL YEAR ENDED MARCH 31, 2014 | FOUR MONTHS ENDED MARCH 31, 2013 | FISCAL YEAR ENDED NOV. 30, 2012 | FISCAL YEAR ENDED NOV. 30, 2011 | FISCAL YEAR ENDED NOV. 30, 2010(1) | FISCAL YEAR ENDED NOV. 30, 2009(1) | |||||||||||||||||||||
Net Asset Value, Beginning of Period | $21.43 | $22.25 | $23.29 | $23.38 | $22.84 | $22.92 | $23.15 | |||||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||||||
Net investment income | 0.14 | 0.26 | 0.09 | 0.33 | 0.49 | 0.59 | 0.72 | |||||||||||||||||||||
Net realized and unrealized gains (losses) | 0.20 | (0.59 | ) | (0.24 | ) | 0.39 | 0.95 | 0.44 | (0.18 | ) | ||||||||||||||||||
Total from Investment Operations | 0.34 | (0.33 | ) | (0.15 | ) | 0.72 | 1.44 | 1.03 | 0.54 | |||||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||||||
From net investment income | (0.14 | ) | (0.26 | ) | (0.09 | ) | (0.34 | ) | (0.49 | ) | (0.59 | ) | (0.76 | ) | ||||||||||||||
From net realized gains | – | (0.23 | ) | (0.80 | ) | (0.47 | ) | (0.41 | ) | (0.52 | ) | (0.01 | ) | |||||||||||||||
Total Distributions Paid | (0.14 | ) | (0.49 | ) | (0.89 | ) | (0.81 | ) | (0.90 | ) | (1.11 | ) | (0.77 | ) | ||||||||||||||
Net Asset Value, End of Period | $21.63 | $21.43 | $22.25 | $23.29 | $23.38 | $22.84 | $22.92 | |||||||||||||||||||||
Total Return(2) | 1.65 | % | (1.44 | )% | (0.70 | )% | 3.17 | % | 6.60 | % | 4.74 | % | 2.39 | % | ||||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||||||
Net assets, in thousands, end of period | $90,741 | $114,262 | $132,160 | $139,579 | $136,803 | $141,733 | $135,324 | |||||||||||||||||||||
Ratio to average net assets of:(3) | ||||||||||||||||||||||||||||
Expenses, net of waivers, reimbursements and credits | 0.16 | % | 0.15 | %(4) | 0.15 | %(4) | 0.26 | %(4) | 0.26 | %(4) | 0.26 | % | 0.26 | % | ||||||||||||||
Expenses, before waivers, reimbursements and credits | 0.47 | % | 0.68 | % | 0.68 | % | 0.52 | % | 0.48 | % | 0.48 | % | 0.47 | % | ||||||||||||||
Net investment income, net of waivers, reimbursements and credits | 1.30 | % | 1.20 | %(4) | 1.20 | %(4) | 1.43 | %(4) | 2.17 | %(4) | 2.60 | % | 3.13 | % | ||||||||||||||
Net investment income, before waivers, reimbursements and credits | 0.99 | % | 0.67 | % | 0.67 | % | 1.17 | % | 1.95 | % | 2.38 | % | 2.92 | % | ||||||||||||||
Portfolio Turnover Rate | 20.98 | % | 69.65 | % | 21.88 | % | 74.49 | % | 64.52 | % | 47.05 | % | 44.72 | % |
(1) | Net investment income for the year ended was calculated using the average shares outstanding method. |
(2) | 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. Total return is not annualized for periods less than one year. |
(3) | Annualized for periods less than one year. |
(4) | 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 less than $1,000, $1,000, $1,000 and less than $1,000, which represents less than 0.005 percent of average net assets for the fiscal year ended March 31, 2014, four months ended March 31, 2013 and fiscal years ended November 30, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 6 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND | SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
ASSET-BACKED SECURITIES – 2.1% | ||||||||
Auto Floor Plan – 0.0% | ||||||||
Ford Credit Floorplan Master Owner Trust, Series 2014-1, Class A1, | $300 | $299 | ||||||
Ford Credit Floorplan Master Owner Trust, Series 2014-4, Class A1, | 100 | 100 | ||||||
399 | ||||||||
Automobile – 0.3% | ||||||||
Ally Auto Receivables Trust, Series 2013-2, Class A3, | 100 | 100 | ||||||
Ally Auto Receivables Trust, Series 2013-2, Class A4, | 50 | 50 | ||||||
Ally Auto Receivables Trust, Series 2014-2, Class A3, | 250 | 250 | ||||||
AmeriCredit Automobile Receivables Trust, Series 2013-2, Class B, | 25 | 25 | ||||||
AmeriCredit Automobile Receivables Trust, Series 2013-2, Class C, | 25 | 25 | ||||||
AmeriCredit Automobile Receivables Trust, Series 2013-2, Class D, | 25 | 25 | ||||||
AmeriCredit Automobile Receivables Trust, Series 2014-3, Class A3, | 100 | 100 | ||||||
AmeriCredit Automobile Receivables Trust, Series 2014-3, Class B, | 100 | 100 | ||||||
AmeriCredit Automobile Receivables Trust, Series 2014-3, Class C, | 100 | 100 | ||||||
AmeriCredit Automobile Receivables Trust, Series 2014-3, Class D, | 50 | 50 | ||||||
Capital Auto Receivables Asset Trust, Series 2013-3, Class A3, | 200 | 201 | ||||||
Capital Auto Receivables Asset Trust, Series 2013-4, Class B, | 50 | 50 | ||||||
Capital Auto Receivables Asset Trust, Series 2013-4, Class C, | 50 | 50 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
ASSET-BACKED SECURITIES – 2.1% – continued | ||||||||
Automobile – 0.3% – continued | ||||||||
Capital Auto Receivables Asset Trust, Series 2013-4, Class D, | $50 | $50 | ||||||
CarMax Auto Owner Trust, Series 2013-3, Class A4, | 200 | 201 | ||||||
CarMax Auto Owner Trust, Series 2014-1, Class A3, | 100 | 100 | ||||||
CarMax Auto Owner Trust, Series 2014-3, Class A3, | 200 | 199 | ||||||
Fifth Third Auto Trust, Series 2013-1, Class A4, | 200 | 202 | ||||||
Fifth Third Auto Trust, Series 2014-1, Class A3, | 200 | 200 | ||||||
Fifth Third Auto Trust, Series 2014-2, Class A3, | 200 | 200 | ||||||
Ford Credit Auto Owner Trust, Series 2013-B, Class A4, | 100 | 100 | ||||||
Ford Credit Auto Owner Trust, Series 2013-B, Class B, | 100 | 100 | ||||||
Honda Auto Receivables Owner Trust, Series 2014-1, Class A3, | 200 | 199 | ||||||
Honda Auto Receivables Owner Trust, Series 2014-3, Class A3, | 500 | 500 | ||||||
Honda Auto Receivables Owner Trust, Series 2014-3, Class A4, | 200 | 198 | ||||||
Hyundai Auto Receivables Trust, Series 2013-B, Class A4, | 75 | 75 | ||||||
Hyundai Auto Receivables Trust, Series 2013-B, Class C, | 65 | 65 | ||||||
Hyundai Auto Receivables Trust, Series 2013-C, Class A3, | 100 | 100 | ||||||
Nissan Auto Receivables Owner Trust, Series 2013-A, Class A4, | 100 | 100 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 7 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
ASSET-BACKED SECURITIES – 2.1% – continued | ||||||||
Automobile – 0.3% – continued | ||||||||
Nissan Auto Receivables Owner Trust, Series 2013-B, Class A3, | $200 | $201 | ||||||
Nissan Auto Receivables Owner Trust, Series 2013-B, Class A4, | 100 | 100 | ||||||
Nissan Auto Receivables Owner Trust, Series 2013-C, Class A4, | 200 | 199 | ||||||
Santander Drive Auto Receivables Trust, Series 2014-2, Class B, | 100 | 100 | ||||||
Santander Drive Auto Receivables Trust, Series 2014-2, Class C, | 100 | 100 | ||||||
Santander Drive Auto Receivables Trust, Series 2014-2, Class D, | 75 | 75 | ||||||
Santander Drive Auto Receivables Trust, Series 2014-3, Class B, | 150 | 149 | ||||||
Santander Drive Auto Receivables Trust, Series 2014-3, Class C, | 100 | 99 | ||||||
Santander Drive Auto Receivables Trust, Series 2014-3, Class D, | 50 | 50 | ||||||
Santander Drive Auto Receivables Trust, Series 2014-4, Class A3, | 100 | 100 | ||||||
Santander Drive Auto Receivables Trust, Series 2014-4, Class B, | 100 | 100 | ||||||
Santander Drive Auto Receivables Trust, Series 2014-4, Class C, | 50 | 50 | ||||||
Santander Drive Auto Receivables Trust, Series 2014-4, Class D, | 50 | 50 | ||||||
World Omni Auto Receivables Trust, Series 2014-A, Class A3, | 200 | 199 | ||||||
World Omni Auto Receivables Trust, Series 2014-A, Class A4, | 100 | 99 | ||||||
5,386 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
ASSET-BACKED SECURITIES – 2.1% – continued | ||||||||
Commercial Mortgage-Backed Securities – 1.5% |
| |||||||
Banc of America Commercial Mortgage Trust, Series 2006-2, Class A4, | $200 | $211 | ||||||
Banc of America Commercial Mortgage Trust, Series 2006-4, Class AM, | 400 | 431 | ||||||
Banc of America Commercial Mortgage Trust, Series 2006-5, Class A4, | 250 | 266 | ||||||
Banc of America Commercial Mortgage Trust, Series 2007-1, Class A4, | 435 | 466 | ||||||
Banc of America Commercial Mortgage Trust, Series 2008-1, Class A4, | 500 | 558 | ||||||
Bear Stearns Commercial Mortgage Securities Trust, Series 2006-PW13, Class A4, | 631 | 670 | ||||||
Bear Stearns Commercial Mortgage Securities Trust, Series 2006-PW14, Class A4, | 500 | 536 | ||||||
Bear Stearns Commercial Mortgage Securities Trust, Series 2006-T24, Class A4, | 240 | 257 | ||||||
Bear Stearns Commercial Mortgage Securities Trust, Series 2007-PW16, Class A4, | 500 | 549 | ||||||
Bear Stearns Commercial Mortgage Securities Trust, Series 2007-PW18, Class A4, | 250 | 275 | ||||||
Bear Stearns Commercial Mortgage Securities Trust, Series 2007-T26, Class A4, | 500 | 541 | ||||||
Bear Stearns Commercial Mortgage Securities Trust, Series 2007-T28, Class A4, | 1,050 | 1,156 | ||||||
Bear Stearns Commercial Mortgage Securities Trust, Series 2007-T28, Class AM, | 250 | 276 | ||||||
CD Commercial Mortgage Trust, Series 2006-CD3, Class A5, | 447 | 472 |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 8 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
ASSET-BACKED SECURITIES – 2.1% – continued | ||||||||
Commercial Mortgage-Backed Securities – 1.5% – continued |
| |||||||
CD Commercial Mortgage Trust, Series 2007-CD5, Class A4, | $465 | $511 | ||||||
CFCRE Commercial Mortgage Trust, Series 2011-C2, Class A2, | 200 | 206 | ||||||
Citigroup Commercial Mortgage Trust, Series 2006-C4, Class A3, | 561 | 593 | ||||||
Citigroup Commercial Mortgage Trust, Series 2006-C5, Class A4, | 1,000 | 1,072 | ||||||
Citigroup Commercial Mortgage Trust, Series 2012-GC8, Class A4, | 400 | 398 | ||||||
Citigroup Commercial Mortgage Trust, Series 2013-GC11, Class A2, | 100 | 100 | ||||||
Citigroup Commercial Mortgage Trust, Series 2013-GC15, Class A4, | 100 | 108 | ||||||
Citigroup Commercial Mortgage Trust, Series 2013-GC15, Class AS, | 100 | 108 | ||||||
COBALT CMBS Commercial Mortgage Trust, Series 2006-C1, Class A4, | 226 | 241 | ||||||
Commercial Mortgage Loan Trust, Series 2008-LS1, Class A4B, | 122 | 132 | ||||||
Commercial Mortgage Pass Through Certificates, Series 2012-CR3, Class A3, | 175 | 171 | ||||||
Commercial Mortgage Trust, Series 2006-C8, Class A4, | 400 | 426 | ||||||
Commercial Mortgage Trust, Series 2007-GG11, Class A4, | 400 | 438 | ||||||
Commercial Mortgage Trust, Series 2007-GG9, Class A4, | 400 | 431 | ||||||
Commercial Mortgage Trust, Series 2012-CR2, Class A4, | 100 | 100 | ||||||
Commercial Mortgage Trust, Series 2012-CR4, Class A3, | 150 | 147 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
ASSET-BACKED SECURITIES – 2.1% – continued | ||||||||
Commercial Mortgage-Backed Securities – 1.5% – continued |
| |||||||
Commercial Mortgage Trust, Series 2012-CR5, Class A4, | $100 | $97 | ||||||
Commercial Mortgage Trust, Series 2012-LC4, Class A4, | 100 | 102 | ||||||
Commercial Mortgage Trust, Series 2013-CR10, Class A4, | 100 | 107 | ||||||
Commercial Mortgage Trust, Series 2013-CR9, Class A4, | 200 | 215 | ||||||
Commercial Mortgage Trust, Series 2013-LC6, Class A4, | 150 | 147 | ||||||
Commercial Mortgage Trust, Series 2014-CR18, Class A5, | 500 | 515 | ||||||
Commercial Mortgage Trust, Series 2014-CR19, Class A5, | 300 | 306 | ||||||
Commercial Mortgage Trust, Series 2014-UBS5, Class A4, | 300 | 309 | ||||||
Credit Suisse Commercial Mortgage Trust, Series 2006-C4, Class A3, | 433 | 461 | ||||||
DB-UBS Mortgage Trust, Series 2011-LC3A, Class A2, | 175 | 182 | ||||||
GE Capital Commercial Mortgage Trust Corp., Series 2007-C1, Class A4, | 300 | 322 | ||||||
GS Mortgage Securities Corp. II, Series 2012-GCJ9, Class A3, | 175 | 170 | ||||||
GS Mortgage Securities Corp. II, Series 2013-GC10, Class A5, | 100 | 98 | ||||||
GS Mortgage Securities Trust, | 300 | 311 | ||||||
GS Mortgage Securities Trust, Series 2007-GG10, Class A4, | 476 | 520 | ||||||
GS Mortgage Securities Trust, Series 2011-GC5, Class A2, | 125 | 129 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 9 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
ASSET-BACKED SECURITIES – 2.1% – continued | ||||||||
Commercial Mortgage-Backed Securities – 1.5% – continued |
| |||||||
GS Mortgage Securities Trust, Series 2011-GC5, Class A4, | $150 | $157 | ||||||
GS Mortgage Securities Trust, Series 2012-GC6, Class A3, | 200 | 205 | ||||||
GS Mortgage Securities Trust, Series 2013-GC13, Class A5, | 200 | 213 | ||||||
GS Mortgage Securities Trust, Series 2013-GC14, Class A5, | 150 | 160 | ||||||
GS Mortgage Securities Trust, Series 2013-GCJ12, Class A4, | 100 | 99 | ||||||
GS Mortgage Securities Trust, Series 2014-GC18, Class A4, | 500 | 525 | ||||||
GS Mortgage Securities Trust, Series 2014-GC20, Class A5, | 100 | 105 | ||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2006-LDP7, Class A4, | 400 | 424 | ||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2006-LDP9, Class A3, | 493 | 529 | ||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2007-CB18, Class A4, | 483 | 521 | ||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2007-CB19, Class A4, | 700 | 761 | ||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2007-LD11, Class A4, | 378 | 409 | ||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2007-LD12, Class A4, | 215 | 234 | ||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2011-C5, Class A3, | 200 | 215 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
ASSET-BACKED SECURITIES – 2.1% – continued | ||||||||
Commercial Mortgage-Backed Securities – 1.5% – continued |
| |||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2012-C6, Class A3, | $200 | $206 | ||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2012-CBX, Class A4, | 125 | 129 | ||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2013-C10, Class A5, | 150 | 149 | ||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2013-C10, Class AS, | 50 | 49 | ||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2013-C13, Class A4, | 100 | 105 | ||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2014-C19, Class A4, | 200 | 209 | ||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2014-C20, Class A5, | 500 | 515 | ||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2014-C22, Class A4, | 500 | 513 | ||||||
LB-UBS Commercial Mortgage Trust, Series 2006-C3, Class AM, | 185 | 196 | ||||||
LB-UBS Commercial Mortgage Trust, Series 2007-C2, Class A3, | 409 | 443 | ||||||
LB-UBS Commercial Mortgage Trust, Series 2008-C1, Class A2, | 500 | 559 | ||||||
Merrill Lynch Mortgage Trust, Series 2007-C1, Class A4, | 650 | 713 | ||||||
ML-CFC Commercial Mortgage Trust, Series 2007-6, Class A4, | 150 | 163 | ||||||
ML-CFC Commercial Mortgage Trust, Series 2007-8, Class A3, | 500 | 548 |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 10 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
ASSET-BACKED SECURITIES – 2.1% – continued | ||||||||
Commercial Mortgage-Backed Securities – 1.5% – continued |
| |||||||
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2012-C6, Class A4, | $200 | $195 | ||||||
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C11, Class A4, | 300 | 320 | ||||||
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C7, Class A4, | 175 | 171 | ||||||
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C9, Class A4, | 200 | 197 | ||||||
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C14, Class A2, 2.92%, 2/15/47 | 200 | 205 | ||||||
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C14, Class A3, | 100 | 104 | ||||||
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C14, Class A5, | 200 | 210 | ||||||
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C17, Class A5, | 400 | 409 | ||||||
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C18, Class A2, | 500 | 515 | ||||||
Morgan Stanley Capital I Trust, Series 2007-IQ15, Class A4, | 292 | 321 | ||||||
Morgan Stanley Capital I Trust, Series 2007-T25, Class A3, | 296 | 319 | ||||||
Morgan Stanley Capital I Trust, Series 2007-T27, Class A4, | 400 | 439 | ||||||
Morgan Stanley Capital I Trust, Series 2008-T29, Class A4, | 230 | 259 | ||||||
Morgan Stanley Capital I Trust, Series 2006-HQ10, Class A4, | 89 | 95 | ||||||
Morgan Stanley Capital I Trust, Series 2006-IQ12, Class A4, | 482 | 516 | ||||||
Morgan Stanley Capital I Trust, Series 2006-T23, Class A4, | 500 | 533 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
ASSET-BACKED SECURITIES – 2.1% – continued | ||||||||
Commercial Mortgage-Backed Securities – 1.5% – continued |
| |||||||
Morgan Stanley Capital I Trust, Series 2011-C3, Class A2, | $372 | $385 | ||||||
Morgan Stanley Capital I Trust, Series 2012-C4, Class A4, | 150 | 151 | ||||||
UBS Commercial Mortgage Trust, Series 2012-C1, Class A3, | 175 | 178 | ||||||
UBS-Barclays Commercial Mortgage Trust, Series 2012-C3, Class A4, | 125 | 124 | ||||||
UBS-Barclays Commercial Mortgage Trust, Series 2012-C4, Class A5, | 100 | 97 | ||||||
UBS-Barclays Commercial Mortgage Trust, Series 2013-C5, Class A4, | 100 | 99 | ||||||
UBS-Barclays Commercial Mortgage Trust, Series 2013-C6, Class A4, | 100 | 100 | ||||||
UBS-Citigroup Commercial Mortgage Trust, Series 2011-C1, Class A3, | 150 | 155 | ||||||
Wachovia Bank Commercial Mortgage Trust, Series 2006-C23, Class AM, | 500 | 526 | ||||||
Wachovia Bank Commercial Mortgage Trust, Series 2006-C24, Class AM, | 125 | 132 | ||||||
Wachovia Bank Commercial Mortgage Trust, Series 2006-C28, Class A4, | 467 | 500 | ||||||
Wachovia Bank Commercial Mortgage Trust, Series 2006-C29, Class A4, | 197 | 210 | ||||||
Wachovia Bank Commercial Mortgage Trust, Series 2007-C31, Class A4, | 250 | 267 | ||||||
Wachovia Bank Commercial Mortgage Trust, Series 2007-C32, Class A3, | 200 | 216 | ||||||
Wells Fargo Commercial Mortgage Trust, Series 2012-LC5, Class A3, | 150 | 148 | ||||||
WF-RBS Commercial Mortgage Trust, Series 2012-C10, Class A3, | 100 | 98 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 11 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
ASSET-BACKED SECURITIES – 2.1% – continued | ||||||||
Commercial Mortgage-Backed Securities – 1.5% – continued |
| |||||||
WF-RBS Commercial Mortgage Trust, Series 2012-C6, Class A4, 3.44%, 4/15/45 | $175 | $180 | ||||||
WF-RBS Commercial Mortgage Trust, Series 2013-C12, Class A4, 3.20%, 3/15/48 | 100 | 100 | ||||||
WF-RBS Commercial Mortgage Trust, Series 2013-C12, Class AS, 3.56%, 3/15/48 | 50 | 50 | ||||||
WF-RBS Commercial Mortgage Trust, Series 2013-C14, Class A5, 3.34%, 6/15/46 | 150 | 151 | ||||||
WF-RBS Commercial Mortgage Trust, Series 2013-C16, Class A2, 3.22%, 9/15/46 | 100 | 104 | ||||||
WF-RBS Commercial Mortgage Trust, Series 2013-C16, Class A5, 4.42%, 9/15/46 | 250 | 270 | ||||||
WF-RBS Commercial Mortgage Trust, Series 2014-C22, Class A5, 3.75%, 9/15/57 | 500 | 512 | ||||||
WF-RBS Commercial Mortgage Trust, Series 2014-LC14, Class A5, 4.05%, 3/15/47 | 100 | 105 | ||||||
34,557 | ||||||||
Credit Card – 0.3% | ||||||||
American Express Credit Account Master Trust, Series 2014-2, Class A, 1.26%, 1/15/20 | 220 | 219 | ||||||
BA Credit Card Trust, Series 2007-A1, Class A1, 5.17%, 6/15/19 | 185 | 202 | ||||||
Capital One Multi-Asset Execution Trust, Series 2013-A1, Class A1, 0.63%, 11/15/18 | 100 | 100 | ||||||
Capital One Multi-Asset Execution Trust, Series 2013-A3, Class A3, 0.96%, 9/16/19 | 150 | 150 | ||||||
Chase Issuance Trust, Series 2012-A4, Class A4, 1.58%, 8/16/21 | 250 | 242 | ||||||
Chase Issuance Trust, Series 2012-A7, Class A7, 2.16%, 9/16/24 | 150 | 142 | ||||||
Chase Issuance Trust, Series 2013-A1, Class A1, 1.30%, 2/18/20 | 100 | 99 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
ASSET-BACKED SECURITIES – 2.1% – continued | ||||||||
Credit Card – 0.3% – continued | ||||||||
Chase Issuance Trust, Series 2014-A1, Class A1, 1.15%, 1/15/19 | $300 | $300 | ||||||
Citibank Credit Card Issuance Trust, Series 2006-A3, Class A3, 5.30%, 3/15/18 | 200 | 213 | ||||||
Citibank Credit Card Issuance Trust, Series 2007-A3, Class A3, 6.15%, 6/15/39 | 100 | 127 | ||||||
Citibank Credit Card Issuance Trust, Series 2013-A3, Class A3, 1.11%, 7/23/18 | 300 | 301 | ||||||
Citibank Credit Card Issuance Trust, Series 2013-A6, Class A6, 1.32%, 9/7/18 | 250 | 252 | ||||||
Citibank Credit Card Issuance Trust, Series 2014-A1, Class A1, 2.88%, 1/23/23 | 300 | 305 | ||||||
Citibank Credit Card Issuance Trust, Series 2014-A4, Class A4, 1.23%, 4/24/19 | 200 | 199 | ||||||
Citibank Credit Card Issuance Trust, Series 2014-A5, Class A5, 2.68%, 6/7/23 | 150 | 150 | ||||||
Citibank Credit Card Issuance Trust, Series 2014-A6, Class A6, 2.15%, 7/15/21 | 250 | 249 | ||||||
Discover Card Execution Note Trust, Series 2007-A1, Class A1, 5.65%, 3/16/20 | 300 | 335 | ||||||
Discover Card Execution Note Trust, Series 2012-A6, Class A6, 1.67%, 1/18/22 | 350 | 341 | ||||||
Discover Card Execution Note Trust, Series 2013-A5, Class A5, 1.04%, 4/15/19 | 300 | 300 | ||||||
Discover Card Execution Note Trust, Series 2014-A3, Class A3, 1.22%, 10/15/19 | 235 | 234 | ||||||
Discover Card Execution Note Trust, Series 2014-A4, Class A4, 2.12%, 12/15/21 | 500 | 498 | ||||||
Synchrony Credit Card Master Note Trust, Series 2012-6, Class A, 1.36%, 8/17/20 | 150 | 148 | ||||||
Synchrony Credit Card Master Note Trust, Series 2012-7, Class A, 1.76%, 9/15/22 | 100 | 97 |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 12 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
ASSET-BACKED SECURITIES – 2.1% – continued | ||||||||
Credit Card – 0.3% – continued | ||||||||
Synchrony Credit Card Master Note Trust, Series 2013-1, Class A, | $200 | $196 | ||||||
World Financial Network Credit Card Master Trust, Series 2013-B, Class A, | 200 | 200 | ||||||
5,599 | ||||||||
Utilities – 0.0% | ||||||||
AEP Texas Central Transition Funding lll LLC, | 100 | 99 | ||||||
CenterPoint Energy Restoration Bond Co. LLC, | 200 | 209 | ||||||
CenterPoint Energy Restoration Bond Co. LLC, | 100 | 108 | ||||||
Entergy Texas Restoration Funding LLC, | 100 | 109 | ||||||
525 | ||||||||
Total Asset-Backed Securities | ||||||||
(Cost $45,250) | 46,466 | |||||||
CORPORATE BONDS – 19.1% | ||||||||
Advertising & Marketing – 0.1% | ||||||||
Interpublic Group of (The) Cos., Inc., | 135 | 136 | ||||||
Omnicom Group, Inc., | 300 | 350 | ||||||
3.63%, 5/1/22 | 496 | 503 | ||||||
989 | ||||||||
Aerospace & Defense – 0.4% | ||||||||
Boeing (The) Co., | 400 | 424 | ||||||
0.95%, 5/15/18 | 200 | 195 | ||||||
6.13%, 2/15/33 | 135 | 173 | ||||||
6.63%, 2/15/38 | 100 | 137 | ||||||
5.88%, 2/15/40 | 75 | 95 | ||||||
Boeing Capital Corp., | 275 | 282 | ||||||
General Dynamics Corp., | 150 | 154 | ||||||
1.00%, 11/15/17 | 100 | 99 | ||||||
3.88%, 7/15/21 | 250 | 267 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Aerospace & Defense – 0.4% – continued | ||||||||
3.60%, 11/15/42 | $155 | $140 | ||||||
L-3 Communications Corp., | 150 | 158 | ||||||
5.20%, 10/15/19 | 250 | 276 | ||||||
4.95%, 2/15/21 | 40 | 43 | ||||||
Lockheed Martin Corp., | 100 | 111 | ||||||
2.13%, 9/15/16 | 65 | 66 | ||||||
4.25%, 11/15/19 | 500 | 545 | ||||||
4.07%, 12/15/42 | 418 | 397 | ||||||
Northrop Grumman Corp., | 125 | 124 | ||||||
5.05%, 8/1/19 | 170 | 189 | ||||||
5.05%, 11/15/40 | 250 | 271 | ||||||
4.75%, 6/1/43 | 250 | 257 | ||||||
Precision Castparts Corp., | 210 | 207 | ||||||
3.90%, 1/15/43 | 100 | 96 | ||||||
Raytheon Co., | 510 | 559 | ||||||
2.50%, 12/15/22 | 150 | 144 | ||||||
4.70%, 12/15/41 | 100 | 107 | ||||||
Textron, Inc., | 125 | 139 | ||||||
United Technologies Corp., | 500 | 507 | ||||||
5.38%, 12/15/17 | 390 | 437 | ||||||
4.50%, 4/15/20 | 450 | 497 | ||||||
7.50%, 9/15/29 | 100 | 142 | ||||||
6.05%, 6/1/36 | 100 | 126 | ||||||
6.13%, 7/15/38 | 175 | 222 | ||||||
4.50%, 6/1/42 | 700 | 732 | ||||||
8,318 | ||||||||
Airlines – 0.0% | ||||||||
Continental Airlines Pass Through Trust, | 300 | 352 | ||||||
Southwest Airlines Co. Pass Through Trust, | 367 | 422 | ||||||
774 | ||||||||
Apparel & Textile Products – 0.0% | ||||||||
NIKE, Inc., | 75 | 70 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 13 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Apparel & Textile Products – 0.0% – continued |
| |||||||
VF Corp., | $150 | $158 | ||||||
6.00%, 10/15/33 | 100 | 121 | ||||||
6.45%, 11/1/37 | 30 | 39 | ||||||
388 | ||||||||
Auto Parts Manufacturing – 0.0% | ||||||||
Delphi Corp., | 100 | 102 | ||||||
Johnson Controls, Inc., | 75 | 78 | ||||||
5.00%, 3/30/20 | 155 | 171 | ||||||
5.70%, 3/1/41 | 250 | 285 | ||||||
4.63%, 7/2/44 | 65 | 64 | ||||||
700 | ||||||||
Automobiles Manufacturing – 0.4% | ||||||||
American Honda Finance Corp., | 75 | 75 | ||||||
2.25%, 8/15/19 | 250 | 249 | ||||||
Daimler Finance North America LLC, | 175 | 264 | ||||||
Ford Motor Co., | 350 | 462 | ||||||
4.75%, 1/15/43 | 500 | 500 | ||||||
Ford Motor Credit Co. LLC, | 500 | 509 | ||||||
4.21%, 4/15/16 | 1,000 | 1,046 | ||||||
4.25%, 2/3/17 | 1,000 | 1,060 | ||||||
3.00%, 6/12/17 | 640 | 661 | ||||||
2.88%, 10/1/18 | 200 | 204 | ||||||
5.88%, 8/2/21 | 500 | 575 | ||||||
4.25%, 9/20/22 | 300 | 316 | ||||||
Toyota Motor Credit Corp., | 300 | 309 | ||||||
2.00%, 9/15/16 | 165 | 169 | ||||||
2.05%, 1/12/17 | 750 | 767 | ||||||
1.75%, 5/22/17 | 150 | 152 | ||||||
1.25%, 10/5/17 | 250 | 248 | ||||||
1.38%, 1/10/18 | 500 | 496 | ||||||
2.00%, 10/24/18 | 400 | 401 | ||||||
2.10%, 1/17/19 | 100 | 100 | ||||||
2.13%, 7/18/19 | 100 | 100 | ||||||
4.50%, 6/17/20 | 300 | 331 | ||||||
8,994 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Banks – 0.7% | ||||||||
American Express Centurion Bank, | $75 | $75 | ||||||
Bank of America N.A., | 250 | 301 | ||||||
Bank One Corp., | 54 | 70 | ||||||
BB&T Corp., | 600 | 631 | ||||||
3.95%, 4/29/16 | 250 | 263 | ||||||
2.15%, 3/22/17 | 250 | 254 | ||||||
1.60%, 8/15/17 | 50 | 50 | ||||||
1.45%, 1/12/18 | 80 | 79 | ||||||
2.05%, 6/19/18 | 100 | 100 | ||||||
2.25%, 2/1/19 | 100 | 100 | ||||||
Branch Banking & Trust Co., | 650 | 646 | ||||||
3.80%, 10/30/26 | 250 | 249 | ||||||
Capital One N.A., | 250 | 246 | ||||||
2.40%, 9/5/19 | 250 | 247 | ||||||
Discover Bank, | 250 | 247 | ||||||
Fifth Third Bancorp, | 75 | 82 | ||||||
3.50%, 3/15/22 | 200 | 204 | ||||||
4.30%, 1/16/24 | 220 | 226 | ||||||
8.25%, 3/1/38 | 275 | 404 | ||||||
Fifth Third Bank, | 250 | 250 | ||||||
2.88%, 10/1/21 | 250 | 246 | ||||||
HSBC Bank USA N.A., | 300 | 332 | ||||||
7.00%, 1/15/39 | 350 | 477 | ||||||
HSBC USA, Inc., | 180 | 179 | ||||||
2.63%, 9/24/18 | 80 | 82 | ||||||
JPMorgan Chase Bank N.A., | 200 | 216 | ||||||
6.00%, 10/1/17 | 650 | 727 | ||||||
KeyBank N.A., | 100 | 106 | ||||||
KeyCorp, | 250 | 250 | ||||||
5.10%, 3/24/21 | 25 | 28 |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 14 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Banks – 0.7% – continued | ||||||||
Manufacturers & Traders Trust Co., | $250 | $250 | ||||||
6.63%, 12/4/17 | 250 | 286 | ||||||
MUFG Americas Holdings Corp., | 150 | 153 | ||||||
MUFG Union Bank N.A., | 250 | 254 | ||||||
PNC Bank N.A., | 100 | 109 | ||||||
2.70%, 11/1/22 | 250 | 238 | ||||||
2.95%, 1/30/23 | 250 | 243 | ||||||
3.80%, 7/25/23 | 250 | 257 | ||||||
PNC Financial Services Group (The), Inc., | 100 | 97 | ||||||
PNC Funding Corp., | 60 | 62 | ||||||
6.70%, 6/10/19 | 600 | 714 | ||||||
4.38%, 8/11/20 | 500 | 545 | ||||||
3.30%, 3/8/22 | 150 | 151 | ||||||
Santander Holdings USA, Inc., | 30 | 32 | ||||||
SunTrust Bank, | 125 | 144 | ||||||
2.75%, 5/1/23 | 350 | 334 | ||||||
SunTrust Banks, Inc., | 100 | 104 | ||||||
2.35%, 11/1/18 | 25 | 25 | ||||||
2.50%, 5/1/19 | 200 | 201 | ||||||
US Bancorp, | 75 | 77 | ||||||
1.95%, 11/15/18 | 200 | 200 | ||||||
4.13%, 5/24/21 | 200 | 216 | ||||||
3.00%, 3/15/22 | 115 | 115 | ||||||
2.95%, 7/15/22 | 200 | 194 | ||||||
US Bank N.A., | 350 | 350 | ||||||
Wachovia Corp., | 550 | 599 | ||||||
5.75%, 6/15/17 | 350 | 390 | ||||||
5.75%, 2/1/18 | 600 | 676 | ||||||
Wells Fargo Bank N.A., | 250 | 307 | ||||||
6.60%, 1/15/38 | 300 | 401 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Banks – 0.7% – continued | ||||||||
Wells Fargo Capital X, | $100 | $103 | ||||||
15,194 | ||||||||
Biotechnology – 0.2% | ||||||||
Amgen, Inc., | 100 | 102 | ||||||
2.50%, 11/15/16 | 250 | 257 | ||||||
1.25%, 5/22/17 | 70 | 70 | ||||||
5.85%, 6/1/17 | 305 | 340 | ||||||
2.20%, 5/22/19 | 250 | 247 | ||||||
4.10%, 6/15/21 | 165 | 176 | ||||||
3.88%, 11/15/21 | 250 | 263 | ||||||
6.38%, 6/1/37 | 100 | 122 | ||||||
6.40%, 2/1/39 | 100 | 122 | ||||||
5.75%, 3/15/40 | 750 | 858 | ||||||
5.15%, 11/15/41 | 250 | 264 | ||||||
5.65%, 6/15/42 | 100 | 114 | ||||||
5.38%, 5/15/43 | 200 | 218 | ||||||
Celgene Corp., | 35 | 35 | ||||||
2.25%, 5/15/19 | 165 | 164 | ||||||
5.25%, 8/15/43 | 85 | 92 | ||||||
Gilead Sciences, Inc., | 100 | 104 | ||||||
2.05%, 4/1/19 | 100 | 99 | ||||||
4.50%, 4/1/21 | 200 | 219 | ||||||
5.65%, 12/1/41 | 330 | 387 | ||||||
4,253 | ||||||||
Cable & Satellite – 0.4% | ||||||||
Comcast Corp., | 250 | 267 | ||||||
3.13%, 7/15/22 | 430 | 433 | ||||||
3.38%, 2/15/25 | 65 | 64 | ||||||
7.05%, 3/15/33 | 140 | 188 | ||||||
5.65%, 6/15/35 | 50 | 59 | ||||||
6.45%, 3/15/37 | 520 | 665 | ||||||
6.95%, 8/15/37 | 450 | 603 | ||||||
6.40%, 5/15/38 | 600 | 765 | ||||||
6.40%, 3/1/40 | 175 | 225 | ||||||
4.65%, 7/15/42 | 40 | 41 | ||||||
DIRECTV Holdings LLC/DIRECTV Financing Co., Inc., | 55 | 55 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 15 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Cable & Satellite – 0.4% – continued | ||||||||
4.60%, 2/15/21 | $555 | $603 | ||||||
4.45%, 4/1/24 | 1,020 | 1,062 | ||||||
6.00%, 8/15/40 | 520 | 584 | ||||||
Time Warner Cable, Inc., | 450 | 523 | ||||||
8.75%, 2/14/19 | 300 | 378 | ||||||
5.00%, 2/1/20 | 1,690 | 1,878 | ||||||
6.55%, 5/1/37 | 200 | 252 | ||||||
7.30%, 7/1/38 | 455 | 619 | ||||||
6.75%, 6/15/39 | 130 | 167 | ||||||
9,431 | ||||||||
Chemicals – 0.4% | ||||||||
Air Products & Chemicals, Inc., | 145 | 148 | ||||||
1.20%, 10/15/17 | 250 | 249 | ||||||
2.75%, 2/3/23 | 250 | 241 | ||||||
Airgas, Inc., | 250 | 247 | ||||||
2.90%, 11/15/22 | 150 | 145 | ||||||
3.65%, 7/15/24 | 70 | 70 | ||||||
Cabot Corp., | 250 | 267 | ||||||
2.55%, 1/15/18 | 300 | 304 | ||||||
CF Industries, Inc., | 300 | 347 | ||||||
3.45%, 6/1/23 | 110 | 108 | ||||||
5.15%, 3/15/34 | 235 | 248 | ||||||
Dow Chemical (The) Co., | 29 | 33 | ||||||
4.25%, 11/15/20 | 250 | 266 | ||||||
4.13%, 11/15/21 | 200 | 210 | ||||||
3.00%, 11/15/22 | 100 | 96 | ||||||
7.38%, 11/1/29 | 100 | 132 | ||||||
4.25%, 10/1/34 | 150 | 144 | ||||||
9.40%, 5/15/39 | 300 | 476 | ||||||
5.25%, 11/15/41 | 400 | 415 | ||||||
E.I. du Pont de Nemours & Co., | 400 | 438 | ||||||
4.63%, 1/15/20 | 615 | 678 | ||||||
2.80%, 2/15/23 | 200 | 194 | ||||||
6.50%, 1/15/28 | 100 | 125 | ||||||
Eastman Chemical Co., | 560 | 571 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Chemicals – 0.4% – continued | ||||||||
4.80%, 9/1/42 | $200 | $198 | ||||||
4.65%, 10/15/44 | 100 | 95 | ||||||
Lubrizol Corp., | 50 | 65 | ||||||
Monsanto Co., | 50 | 52 | ||||||
5.13%, 4/15/18 | 240 | 267 | ||||||
2.20%, 7/15/22 | 65 | 61 | ||||||
5.50%, 8/15/25 | 50 | 59 | ||||||
4.20%, 7/15/34 | 55 | 55 | ||||||
5.88%, 4/15/38 | 256 | 312 | ||||||
Mosaic (The) Co., | 30 | 33 | ||||||
4.88%, 11/15/41 | 100 | 100 | ||||||
PPG Industries, Inc., | 50 | 51 | ||||||
6.65%, 3/15/18 | 220 | 254 | ||||||
2.70%, 8/15/22 | 60 | 58 | ||||||
7.70%, 3/15/38 | 200 | 287 | ||||||
Praxair, Inc., | 85 | 84 | ||||||
1.25%, 11/7/18 | 150 | 146 | ||||||
4.50%, 8/15/19 | 400 | 440 | ||||||
4.05%, 3/15/21 | 100 | 108 | ||||||
2.45%, 2/15/22 | 250 | 243 | ||||||
2.20%, 8/15/22 | 150 | 142 | ||||||
3.55%, 11/7/42 | 125 | 113 | ||||||
Rohm & Haas Co., | 72 | 81 | ||||||
Sherwin-Williams(The)Co., | 100 | 100 | ||||||
Westlake Chemical Corp., | 65 | 65 | ||||||
9,621 | ||||||||
Commercial Finance – 0.7% | ||||||||
Air Lease Corp., | 65 | 66 | ||||||
4.25%, 9/15/24 | 350 | 344 | ||||||
GATX Corp., | 35 | 35 | ||||||
5.20%, 3/15/44 | 35 | 37 | ||||||
General Electric Capital Corp., | 100 | 105 |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 16 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Commercial Finance – 0.7% – continued | ||||||||
2.95%, 5/9/16 | $200 | $207 | ||||||
2.90%, 1/9/17 | 750 | 779 | ||||||
2.30%, 4/27/17 | 250 | 257 | ||||||
5.63%, 9/15/17 | 1,175 | 1,313 | ||||||
1.60%, 11/20/17 | 135 | 135 | ||||||
1.63%, 4/2/18 | 250 | 250 | ||||||
5.63%, 5/1/18 | 2,575 | 2,911 | ||||||
2.10%, 12/11/19 | 125 | 124 | ||||||
4.38%, 9/16/20 | 115 | 126 | ||||||
4.63%, 1/7/21 | 1,400 | 1,543 | ||||||
3.15%, 9/7/22 | 750 | 747 | ||||||
3.10%, 1/9/23 | 500 | 495 | ||||||
3.45%, 5/15/24 | 350 | 351 | ||||||
6.75%, 3/15/32 | 150 | 198 | ||||||
6.15%, 8/7/37 | 150 | 185 | ||||||
5.88%, 1/14/38 | 800 | 965 | ||||||
6.88%, 1/10/39 | 550 | 740 | ||||||
6.38%, 11/15/67 | 250 | 271 | ||||||
National Rural Utilities Cooperative Finance Corp., | 250 | 254 | ||||||
5.45%, 4/10/17 | 300 | 331 | ||||||
2.15%, 2/1/19 | 165 | 166 | ||||||
3.05%, 2/15/22 | 35 | 35 | ||||||
8.00%, 3/1/32 | 50 | 72 | ||||||
Private Export Funding Corp., | 2,000 | 1,952 | ||||||
14,994 | ||||||||
Communications Equipment – 0.2% | ||||||||
Apple, Inc., | 360 | 359 | ||||||
1.00%, 5/3/18 | 575 | 561 | ||||||
2.85%, 5/6/21 | 125 | 125 | ||||||
2.40%, 5/3/23 | 500 | 473 | ||||||
3.85%, 5/4/43 | 230 | 213 | ||||||
CC Holdings GS V LLC/Crown Castle GS III Corp., | 100 | 101 | ||||||
Cisco Systems, Inc., | 850 | 905 | ||||||
1.10%, 3/3/17 | 400 | 400 | ||||||
3.15%, 3/14/17 | 100 | 105 | ||||||
4.45%, 1/15/20 | 225 | 247 | ||||||
2.90%, 3/4/21 | 50 | 50 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Communications Equipment – 0.2% – continued |
| |||||||
5.90%, 2/15/39 | $690 | $832 | ||||||
Harris Corp., | 50 | 57 | ||||||
Juniper Networks, Inc., | 100 | 107 | ||||||
5.95%, 3/15/41 | 100 | 109 | ||||||
Motorola Solutions, Inc., | 325 | 322 | ||||||
3.50%, 3/1/23 | 100 | 97 | ||||||
5,063 | ||||||||
Construction Materials Manufacturing – 0.0% |
| |||||||
CRH America, Inc., | 100 | 110 | ||||||
Martin Marietta Materials, Inc., | 100 | 114 | ||||||
Owens Corning, | 190 | 193 | ||||||
417 | ||||||||
Consumer Finance – 0.4% | ||||||||
American Express Co., | 800 | 901 | ||||||
7.00%, 3/19/18 | 300 | 349 | ||||||
2.65%, 12/2/22 | 632 | 609 | ||||||
American Express Credit Corp., | 145 | 146 | ||||||
2.80%, 9/19/16 | 1,250 | 1,291 | ||||||
2.38%, 3/24/17 | 250 | 256 | ||||||
1.13%, 6/5/17 | 400 | 397 | ||||||
Capital One Bank USA N.A., | 300 | 297 | ||||||
2.30%, 6/5/19 | 300 | 298 | ||||||
Capital One Financial Corp., | 100 | 100 | ||||||
3.15%, 7/15/16 | 195 | 202 | ||||||
Fidelity National Information Services, Inc., | 40 | 40 | ||||||
5.00%, 3/15/22 | 200 | 211 | ||||||
Fiserv, Inc., 3.13%, 10/1/15 | 250 | 256 | ||||||
3.13%, 6/15/16 | 170 | 176 | ||||||
4.63%, 10/1/20 | 250 | 270 | ||||||
3.50%, 10/1/22 | 50 | 50 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 17 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Consumer Finance – 0.4% – continued | ||||||||
HSBC Finance Corp., | $650 | $688 | ||||||
6.68%, 1/15/21 | 500 | 586 | ||||||
Total System Services, Inc., | 200 | 199 | ||||||
Western Union (The) Co., | 355 | 387 | ||||||
6.20%, 11/17/36 | 50 | 51 | ||||||
6.20%, 6/21/40 | 70 | 72 | ||||||
7,832 | ||||||||
Consumer Products – 0.2% | ||||||||
Clorox (The) Co., | 25 | 28 | ||||||
3.05%, 9/15/22 | 250 | 246 | ||||||
Colgate-Palmolive Co., | 250 | 244 | ||||||
2.30%, 5/3/22 | 165 | 159 | ||||||
1.95%, 2/1/23 | 250 | 232 | ||||||
Estee Lauder (The) Cos., Inc., | 50 | 48 | ||||||
6.00%, 5/15/37 | 100 | 121 | ||||||
Kimberly-Clark Corp., | 50 | 57 | ||||||
6.25%, 7/15/18 | 150 | 174 | ||||||
2.40%, 3/1/22 | 50 | 49 | ||||||
6.63%, 8/1/37 | 350 | 474 | ||||||
3.70%, 6/1/43 | 100 | 93 | ||||||
Procter & Gamble (The) Co., | 1,208 | 1,271 | ||||||
1.45%, 8/15/16 | 50 | 51 | ||||||
4.70%, 2/15/19 | 200 | 223 | ||||||
2.30%, 2/6/22 | 215 | 210 | ||||||
3.10%, 8/15/23 | 250 | 253 | ||||||
5.80%, 8/15/34 | 100 | 126 | ||||||
5.55%, 3/5/37 | 50 | 61 | ||||||
Unilever Capital Corp., | 250 | 275 | ||||||
5.90%, 11/15/32 | 125 | 165 | ||||||
4,560 | ||||||||
Consumer Services – 0.0% | ||||||||
Ecolab, Inc., | 175 | 182 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Consumer Services – 0.0% – continued | ||||||||
1.45%, 12/8/17 | $100 | $99 | ||||||
4.35%, 12/8/21 | 250 | 271 | ||||||
5.50%, 12/8/41 | 105 | 120 | ||||||
672 | ||||||||
Containers & Packaging – 0.1% | ||||||||
3M Co., | 150 | 149 | ||||||
5.70%, 3/15/37 | 350 | 441 | ||||||
International Paper Co., | 325 | 388 | ||||||
7.50%, 8/15/21 | 350 | 435 | ||||||
4.75%, 2/15/22 | 125 | 135 | ||||||
3.65%, 6/15/24 | 250 | 243 | ||||||
7.30%, 11/15/39 | 45 | 58 | ||||||
6.00%, 11/15/41 | 250 | 284 | ||||||
Packaging Corp. of America, | 100 | 106 | ||||||
3.65%, 9/15/24 | 250 | 245 | ||||||
Rock-Tenn Co., | 150 | 152 | ||||||
Sonoco Products Co., | 25 | 26 | ||||||
5.75%, 11/1/40 | 150 | 173 | ||||||
Westvaco Corp., | 100 | 129 | ||||||
2,964 | ||||||||
Department Stores – 0.1% | ||||||||
Kohl’s Corp., | 85 | 88 | ||||||
3.25%, 2/1/23 | 100 | 97 | ||||||
4.75%, 12/15/23 | 250 | 265 | ||||||
6.00%, 1/15/33 | 100 | 110 | ||||||
6.88%, 12/15/37 | 150 | 184 | ||||||
Macy’s Retail Holdings, Inc., | 213 | 234 | ||||||
3.88%, 1/15/22 | 30 | 31 | ||||||
2.88%, 2/15/23 | 150 | 143 | ||||||
6.90%, 4/1/29 | 305 | 385 | ||||||
6.90%, 1/15/32 | 250 | 320 | ||||||
5.13%, 1/15/42 | 40 | 42 | ||||||
Nordstrom, Inc., | 325 | 371 |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 18 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Department Stores – 0.1% – continued | ||||||||
4.00%, 10/15/21 | $150 | $160 | ||||||
7.00%, 1/15/38 | 50 | 67 | ||||||
2,497 | ||||||||
Design, Manufacturing & Distribution – 0.0% |
| |||||||
Arrow Electronics, Inc., | 85 | 87 | ||||||
Diversified Banks – 1.6% | ||||||||
Bank of America Corp., | 165 | 166 | ||||||
3.63%, 3/17/16 | 185 | 192 | ||||||
6.05%, 5/16/16 | 600 | 644 | ||||||
6.50%, 8/1/16 | 1,000 | 1,091 | ||||||
5.75%, 8/15/16 | 100 | 108 | ||||||
5.63%, 10/14/16 | 200 | 217 | ||||||
3.88%, 3/22/17 | 150 | 158 | ||||||
6.40%, 8/28/17 | 200 | 225 | ||||||
6.00%, 9/1/17 | 250 | 279 | ||||||
5.75%, 12/1/17 | 865 | 962 | ||||||
2.00%, 1/11/18 | 1,155 | 1,150 | ||||||
6.88%, 4/25/18 | 505 | 582 | ||||||
5.65%, 5/1/18 | 450 | 501 | ||||||
6.88%, 11/15/18 | 275 | 321 | ||||||
2.60%, 1/15/19 | 300 | 299 | ||||||
2.65%, 4/1/19 | 350 | 349 | ||||||
7.63%, 6/1/19 | 540 | 652 | ||||||
5.63%, 7/1/20 | 1,440 | 1,626 | ||||||
5.00%, 5/13/21 | 400 | 439 | ||||||
5.70%, 1/24/22 | 1,000 | 1,146 | ||||||
4.10%, 7/24/23 | 100 | 102 | ||||||
4.00%, 4/1/24 | 165 | 167 | ||||||
6.11%, 1/29/37 | 150 | 172 | ||||||
7.75%, 5/14/38 | 275 | 372 | ||||||
5.88%, 2/7/42 | 250 | 300 | ||||||
5.00%, 1/21/44 | 100 | 106 | ||||||
4.88%, 4/1/44 | 95 | 99 | ||||||
Citigroup, Inc., | 800 | 844 | ||||||
1.25%, 1/15/16 | 250 | 251 | ||||||
1.30%, 4/1/16 | 150 | 150 | ||||||
3.95%, 6/15/16 | 1,000 | 1,050 | ||||||
4.45%, 1/10/17 | 250 | 266 | ||||||
5.50%, 2/15/17 | 225 | 244 | ||||||
6.00%, 8/15/17 | 100 | 112 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Diversified Banks – 1.6% – continued | ||||||||
6.13%, 11/21/17 | $1,075 | $1,213 | ||||||
1.75%, 5/1/18 | 150 | 148 | ||||||
6.13%, 5/15/18 | 350 | 396 | ||||||
2.55%, 4/8/19 | 65 | 65 | ||||||
2.50%, 7/29/19 | 250 | 248 | ||||||
5.38%, 8/9/20 | 500 | 566 | ||||||
4.50%, 1/14/22 | 735 | 788 | ||||||
4.05%, 7/30/22 | 90 | 91 | ||||||
3.38%, 3/1/23 | 150 | 148 | ||||||
3.50%, 5/15/23 | 190 | 182 | ||||||
3.88%, 10/25/23 | 200 | 203 | ||||||
4.00%, 8/5/24 | 150 | 147 | ||||||
6.63%, 6/15/32 | 100 | 121 | ||||||
6.00%, 10/31/33 | 350 | 392 | ||||||
6.13%, 8/25/36 | 125 | 143 | ||||||
8.13%, 7/15/39 | 1,180 | 1,749 | ||||||
5.88%, 1/30/42 | 30 | 36 | ||||||
5.30%, 5/6/44 | 50 | 52 | ||||||
JPMorgan Chase & Co., | 1,050 | 1,095 | ||||||
1.10%, 10/15/15 | 250 | 251 | ||||||
3.15%, 7/5/16 | 935 | 968 | ||||||
1.35%, 2/15/17 | 150 | 150 | ||||||
6.13%, 6/27/17 | 100 | 111 | ||||||
2.00%, 8/15/17 | 125 | 126 | ||||||
6.00%, 1/15/18 | 1,610 | 1,812 | ||||||
1.80%, 1/25/18 | 1,000 | 998 | ||||||
1.63%, 5/15/18 | 200 | 197 | ||||||
2.35%, 1/28/19 | 250 | 249 | ||||||
6.30%, 4/23/19 | 500 | 580 | ||||||
4.95%, 3/25/20 | 375 | 414 | ||||||
4.40%, 7/22/20 | 300 | 323 | ||||||
4.63%, 5/10/21 | 250 | 272 | ||||||
4.35%, 8/15/21 | 615 | 657 | ||||||
3.25%, 9/23/22 | 210 | 207 | ||||||
3.63%, 5/13/24 | 250 | 248 | ||||||
3.88%, 9/10/24 | 250 | 245 | ||||||
6.40%, 5/15/38 | 554 | 697 | ||||||
5.60%, 7/15/41 | 405 | 464 | ||||||
5.40%, 1/6/42 | 100 | 114 | ||||||
5.63%, 8/16/43 | 150 | 166 | ||||||
Wells Fargo & Co., | 475 | 512 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 19 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS –19.1% – continued | ||||||||
Diversified Banks – 1.6% – continued |
| |||||||
2.63%, 12/15/16 | $250 | $259 | ||||||
2.10%, 5/8/17 | 250 | 255 | ||||||
5.63%, 12/11/17 | 445 | 498 | ||||||
2.15%, 1/15/19 | 135 | 135 | ||||||
3.00%, 1/22/21 | 100 | 101 | ||||||
4.60%, 4/1/21 | 500 | 548 | ||||||
3.50%, 3/8/22 | 1,000 | 1,022 | ||||||
3.45%, 2/13/23 | 125 | 123 | ||||||
4.13%, 8/15/23 | 200 | 207 | ||||||
5.38%, 2/7/35 | 425 | 489 | ||||||
36,523 | ||||||||
Educational Services – 0.1% |
| |||||||
Board of Trustees of The Leland Stanford Junior University (The), | 200 | 224 | ||||||
California Institute of Technology, | 110 | 112 | ||||||
George Washington University (The), | 50 | 50 | ||||||
Johns Hopkins University, | 100 | 100 | ||||||
Massachusetts Institute of Technology, | 190 | 244 | ||||||
4.68%, 7/1/14(2) | 15 | 16 | ||||||
Northwestern University, | 50 | 56 | ||||||
Princeton University, | 100 | 113 | ||||||
Trustees of Dartmouth College, | 170 | 189 | ||||||
University of Pennsylvania, | 100 | 101 | ||||||
Vanderbilt University (The), | 100 | 113 | ||||||
1,318 | ||||||||
Electrical Equipment Manufacturing – 0.2% |
| |||||||
ABB Finance USA, Inc., | 90 | 91 | ||||||
Amphenol Corp., | 100 | 100 | ||||||
Dover Corp., | 60 | 66 | ||||||
Emerson Electric Co., | 100 | 111 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Electrical Equipment Manufacturing – 0.2% – continued |
| |||||||
5.25%, 10/15/18 | $325 | $365 | ||||||
2.63%, 2/15/23 | 85 | 82 | ||||||
6.00%, 8/15/32 | 25 | 31 | ||||||
6.13%, 4/15/39 | 50 | 64 | ||||||
General Electric Co., | 210 | 211 | ||||||
5.25%, 12/6/17 | 750 | 832 | ||||||
2.70%, 10/9/22 | 1,080 | 1,051 | ||||||
4.50%, 3/11/44 | 650 | 674 | ||||||
Honeywell International, Inc., | 200 | 220 | ||||||
5.30%, 3/1/18 | 290 | 325 | ||||||
5.70%, 3/15/37 | 125 | 153 | ||||||
Rockwell Automation, Inc., | 150 | 192 | ||||||
Roper Industries, Inc., | 160 | 161 | ||||||
2.05%, 10/1/18 | 120 | 119 | ||||||
4,848 | ||||||||
Entertainment Content – 0.4% |
| |||||||
CBS Corp., | 25 | 27 | ||||||
2.30%, 8/15/19 | 200 | 197 | ||||||
5.75%, 4/15/20 | 250 | 286 | ||||||
4.30%, 2/15/21 | 500 | 533 | ||||||
3.38%, 3/1/22 | 100 | 100 | ||||||
Scripps Networks Interactive, Inc., | 100 | 103 | ||||||
Time Warner Entertainment Co. L.P., | 75 | 100 | ||||||
8.38%, 7/15/33 | 215 | 318 | ||||||
Time Warner, Inc., | 400 | 439 | ||||||
2.10%, 6/1/19 | 75 | 74 | ||||||
4.88%, 3/15/20 | 160 | 176 | ||||||
4.75%, 3/29/21 | 350 | 381 | ||||||
3.40%, 6/15/22 | 50 | 50 | ||||||
6.50%, 11/15/36 | 850 | 1,023 | ||||||
6.20%, 3/15/40 | 55 | 65 | ||||||
6.10%, 7/15/40 | 200 | 232 | ||||||
5.38%, 10/15/41 | 500 | 531 | ||||||
Viacom, Inc., | 65 | 67 |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 20 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Entertainment Content – 0.4% – continued |
| |||||||
6.13%, 10/5/17 | $125 | $141 | ||||||
2.50%, 9/1/18 | 45 | 46 | ||||||
2.20%, 4/1/19 | 80 | 80 | ||||||
5.63%, 9/15/19 | 310 | 353 | ||||||
6.88%, 4/30/36 | 600 | 752 | ||||||
4.50%, 2/27/42 | 300 | 283 | ||||||
Walt Disney (The) Co., | 150 | 152 | ||||||
1.13%, 2/15/17 | 250 | 250 | ||||||
1.10%, 12/1/17 | 25 | 25 | ||||||
5.50%, 3/15/19 | 400 | 457 | ||||||
3.75%, 6/1/21 | 510 | 544 | ||||||
2.55%, 2/15/22 | 75 | 73 | ||||||
3.70%, 12/1/42 | 130 | 121 | ||||||
4.13%, 6/1/44 | 100 | 100 | ||||||
8,079 | ||||||||
Exploration & Production – 0.5% | ||||||||
Anadarko Petroleum Corp., | 500 | 597 | ||||||
6.20%, 3/15/40 | 15 | 18 | ||||||
Apache Corp., | 250 | 274 | ||||||
3.63%, 2/1/21 | 200 | 208 | ||||||
6.00%, 1/15/37 | 620 | 731 | ||||||
5.10%, 9/1/40 | 250 | 265 | ||||||
ConocoPhillips, | 100 | 117 | ||||||
5.75%, 2/1/19 | 885 | 1,010 | ||||||
5.90%, 10/15/32 | 250 | 316 | ||||||
5.90%, 5/15/38 | 100 | 124 | ||||||
Continental Resources, Inc., | 200 | 211 | ||||||
Devon Energy Corp., | 80 | 82 | ||||||
6.30%, 1/15/19 | 600 | 694 | ||||||
4.00%, 7/15/21 | 200 | 211 | ||||||
3.25%, 5/15/22 | 235 | 233 | ||||||
7.95%, 4/15/32 | 100 | 141 | ||||||
Devon Financing Corp. LLC, | 410 | 573 | ||||||
EOG Resources, Inc., | 215 | 247 | ||||||
4.10%, 2/1/21 | 500 | 540 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Exploration & Production – 0.5% – continued |
| |||||||
EQT Corp., | $325 | $355 | ||||||
Hess Corp., | 620 | 842 | ||||||
7.13%, 3/15/33 | 75 | 100 | ||||||
Kerr-McGee Corp., | 140 | 194 | ||||||
Marathon Oil Corp., | 485 | 546 | ||||||
6.80%, 3/15/32 | 175 | 219 | ||||||
Murphy Oil Corp., | 100 | 101 | ||||||
7.05%, 5/1/29 | 300 | 362 | ||||||
Noble Energy, Inc., | 250 | 265 | ||||||
Occidental Petroleum Corp., | 250 | 253 | ||||||
1.50%, 2/15/18 | 50 | 50 | ||||||
4.10%, 2/1/21 | 750 | 809 | ||||||
3.13%, 2/15/22 | 100 | 101 | ||||||
Pioneer Natural Resources Co., | 150 | 167 | ||||||
6.88%, 5/1/18 | 100 | 115 | ||||||
3.95%, 7/15/22 | 85 | 86 | ||||||
7.20%, 1/15/28 | 100 | 128 | ||||||
Southwestern Energy Co., | 100 | 103 | ||||||
Tosco Corp., | 165 | 241 | ||||||
11,629 | ||||||||
Financial Services – 1.1% | ||||||||
Bank of New York Mellon (The) Corp., | 150 | 154 | ||||||
5.50%, 12/1/17 | 100 | 112 | ||||||
1.30%, 1/25/18 | 500 | 494 | ||||||
1.35%, 3/6/18 | 150 | 148 | ||||||
2.20%, 5/15/19 | 65 | 65 | ||||||
5.45%, 5/15/19 | 75 | 85 | ||||||
3.55%, 9/23/21 | 955 | 992 | ||||||
Bear Stearns (The) Cos. LLC, | 850 | 892 | ||||||
5.55%, 1/22/17 | 50 | 55 | ||||||
6.40%, 10/2/17 | 150 | 170 | ||||||
7.25%, 2/1/18 | 535 | 622 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 21 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Financial Services – 1.1% – continued | ||||||||
BlackRock, Inc., | $130 | $147 | ||||||
4.25%, 5/24/21 | 150 | 163 | ||||||
3.38%, 6/1/22 | 250 | 256 | ||||||
Charles Schwab (The) Corp., | 90 | 90 | ||||||
2.20%, 7/25/18 | 35 | 35 | ||||||
4.45%, 7/22/20 | 250 | 275 | ||||||
CME Group, Inc., | 125 | 143 | ||||||
Goldman Sachs Group (The), Inc., | 220 | 227 | ||||||
5.75%, 10/1/16 | 250 | 271 | ||||||
5.63%, 1/15/17 | 300 | 326 | ||||||
6.25%, 9/1/17 | 1,300 | 1,460 | ||||||
5.95%, 1/18/18 | 1,435 | 1,607 | ||||||
6.15%, 4/1/18 | 815 | 919 | ||||||
2.63%, 1/31/19 | 180 | 180 | ||||||
5.38%, 3/15/20 | 1,295 | 1,442 | ||||||
5.25%, 7/27/21 | 540 | 599 | ||||||
5.75%, 1/24/22 | 750 | 853 | ||||||
3.63%, 1/22/23 | 1,000 | 993 | ||||||
4.00%, 3/3/24 | 250 | 252 | ||||||
5.95%, 1/15/27 | 150 | 171 | ||||||
6.75%, 10/1/37 | 1,165 | 1,391 | ||||||
6.25%, 2/1/41 | 300 | 363 | ||||||
4.80%, 7/8/44 | 100 | 101 | ||||||
Icahn Enterprises L.P./Icahn Enterprises Finance Corp., | 315 | 315 | ||||||
Jefferies Group LLC, | 50 | 62 | ||||||
5.13%, 1/20/23 | 315 | 335 | ||||||
Legg Mason, Inc., | 65 | 65 | ||||||
Mack-Cali Realty L.P., | 200 | 201 | ||||||
Morgan Stanley, | 200 | 209 | ||||||
1.75%, 2/25/16 | 135 | 136 | ||||||
3.80%, 4/29/16 | 150 | 156 | ||||||
5.45%, 1/9/17 | 325 | 353 | ||||||
6.25%, 8/28/17 | 350 | 393 | ||||||
5.95%, 12/28/17 | 175 | 196 | ||||||
6.63%, 4/1/18 | 1,435 | 1,643 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Financial Services – 1.1% – continued | ||||||||
2.50%, 1/24/19 | $750 | $750 | ||||||
7.30%, 5/13/19 | 645 | 769 | ||||||
5.63%, 9/23/19 | 475 | 535 | ||||||
5.50%, 7/28/21 | 565 | 636 | ||||||
4.88%, 11/1/22 | 450 | 475 | ||||||
3.75%, 2/25/23 | 700 | 699 | ||||||
4.10%, 5/22/23 | 300 | 299 | ||||||
3.88%, 4/29/24 | 410 | 410 | ||||||
6.25%, 8/9/26 | 100 | 120 | ||||||
6.38%, 7/24/42 | 300 | 375 | ||||||
State Street Corp., | 225 | 218 | ||||||
3.70%, 11/20/23 | 50 | 52 | ||||||
25,455 | ||||||||
Food & Beverage – 0.8% | ||||||||
Anheuser-Busch Cos. LLC, | 375 | 418 | ||||||
5.95%, 1/15/33 | 100 | 121 | ||||||
5.75%, 4/1/36 | 100 | 118 | ||||||
6.45%, 9/1/37 | 50 | 65 | ||||||
Anheuser-Busch InBev Finance, Inc., | 360 | 354 | ||||||
2.15%, 2/1/19 | 500 | 497 | ||||||
4.00%, 1/17/43 | 150 | 138 | ||||||
4.63%, 2/1/44 | 250 | 253 | ||||||
Anheuser-Busch InBev Worldwide, Inc., | 75 | 77 | ||||||
1.38%, 7/15/17 | 500 | 499 | ||||||
5.38%, 1/15/20 | 450 | 508 | ||||||
2.50%, 7/15/22 | 60 | 57 | ||||||
8.20%, 1/15/39 | 750 | 1,137 | ||||||
3.75%, 7/15/42 | 65 | 58 | ||||||
Archer-Daniels-Midland Co., | 175 | 196 | ||||||
4.48%, 3/1/21 | 150 | 165 | ||||||
5.38%, 9/15/35 | 175 | 205 | ||||||
5.77%, 3/1/41 | 130 | 159 | ||||||
4.02%, 4/16/43 | 56 | 53 | ||||||
Beam Suntory, Inc., | 86 | 91 | ||||||
1.88%, 5/15/17 | 65 | 65 | ||||||
1.75%, 6/15/18 | 250 | 246 | ||||||
Bottling Group LLC, | 675 | 723 |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 22 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Food & Beverage – 0.8% – continued | ||||||||
Brown-Forman Corp., | $65 | $63 | ||||||
3.75%, 1/15/43 | 50 | 47 | ||||||
Campbell Soup Co., | 205 | 193 | ||||||
3.80%, 8/2/42 | 40 | 35 | ||||||
Coca-Cola(The)Co., | 65 | 66 | ||||||
1.65%, 3/14/18 | 125 | 125 | ||||||
1.15%, 4/1/18 | 250 | 246 | ||||||
3.15%, 11/15/20 | 1,115 | 1,162 | ||||||
3.30%, 9/1/21 | 250 | 259 | ||||||
3.20%, 11/1/23 | 100 | 100 | ||||||
ConAgra Foods, Inc., | 130 | 131 | ||||||
7.00%, 4/15/19 | 300 | 356 | ||||||
3.25%, 9/15/22 | 55 | 53 | ||||||
3.20%, 1/25/23 | 150 | 144 | ||||||
7.00%, 10/1/28 | 100 | 126 | ||||||
4.65%, 1/25/43 | 142 | 137 | ||||||
Dr. Pepper Snapple Group, Inc., | 135 | 139 | ||||||
2.60%, 1/15/19 | 80 | 81 | ||||||
2.00%, 1/15/20 | 90 | 88 | ||||||
General Mills, Inc., | 25 | 25 | ||||||
3.15%, 12/15/21 | 500 | 508 | ||||||
3.65%, 2/15/24 | 75 | 76 | ||||||
5.40%, 6/15/40 | 70 | 79 | ||||||
Hershey (The) Co., | 250 | 253 | ||||||
Ingredion, Inc., | 155 | 156 | ||||||
Kellogg Co., | 55 | 56 | ||||||
1.75%, 5/17/17 | 75 | 76 | ||||||
3.25%, 5/21/18 | 130 | 135 | ||||||
2.75%, 3/1/23 | 350 | 337 | ||||||
7.45%, 4/1/31 | 300 | 394 | ||||||
Kraft Foods Group, Inc., | 1,130 | 1,144 | ||||||
5.00%, 6/4/42 | 205 | 214 | ||||||
Mead Johnson Nutrition Co., | 250 | 276 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Food & Beverage – 0.8% – continued | ||||||||
5.90%, 11/1/39 | $50 | $59 | ||||||
Molson Coors Brewing Co., | 60 | 61 | ||||||
5.00%, 5/1/42 | 100 | 101 | ||||||
Mondelez International, Inc., | 500 | 522 | ||||||
2.25%, 2/1/19 | 250 | 248 | ||||||
6.50%, 11/1/31 | 150 | 190 | ||||||
7.00%, 8/11/37 | 100 | 129 | ||||||
6.88%, 2/1/38 | 100 | 130 | ||||||
6.88%, 1/26/39 | 100 | 131 | ||||||
6.50%, 2/9/40 | 500 | 627 | ||||||
PepsiCo, Inc., | 150 | 150 | ||||||
2.50%, 5/10/16 | 200 | 206 | ||||||
5.00%, 6/1/18 | 650 | 723 | ||||||
2.25%, 1/7/19 | 500 | 505 | ||||||
4.50%, 1/15/20 | 300 | 332 | ||||||
2.75%, 3/5/22 | 385 | 378 | ||||||
4.88%, 11/1/40 | 265 | 286 | ||||||
4.00%, 3/5/42 | 50 | 47 | ||||||
3.60%, 8/13/42 | 50 | 44 | ||||||
Tyson Foods, Inc., | 40 | 40 | ||||||
4.50%, 6/15/22 | 300 | 318 | ||||||
4.88%, 8/15/34 | 100 | 103 | ||||||
18,813 | ||||||||
Forest & Paper Products Manufacturing – 0.0% |
| |||||||
Domtar Corp., | 100 | 109 | ||||||
Georgia-Pacific LLC, | 500 | 688 | ||||||
797 | ||||||||
Hardware – 0.1% | ||||||||
Corning, Inc., | 250 | 272 | ||||||
5.75%, 8/15/40 | 170 | 203 | ||||||
EMC Corp., | 375 | 373 | ||||||
3.38%, 6/1/23 | 300 | 294 | ||||||
Hewlett-Packard Co., | 250 | 257 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 23 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Hardware – 0.1% – continued | ||||||||
4.38%, 9/15/21 | $540 | $577 | ||||||
4.65%, 12/9/21 | 225 | 244 | ||||||
6.00%, 9/15/41 | 275 | 313 | ||||||
NetApp, Inc., | 150 | 146 | ||||||
Pitney Bowes, Inc., | 150 | 152 | ||||||
2,831 | ||||||||
Health Care Facilities & Services – 0.2% | ||||||||
AmerisourceBergen Corp., | 175 | 174 | ||||||
Cardinal Health, Inc., | 100 | 109 | ||||||
1.90%, 6/15/17 | 65 | 66 | ||||||
1.70%, 3/15/18 | 25 | 25 | ||||||
3.20%, 6/15/22 | 150 | 149 | ||||||
4.60%, 3/15/43 | 35 | 36 | ||||||
Catholic Health Initiatives, | 85 | 85 | ||||||
Express Scripts Holding Co., | 100 | 104 | ||||||
2.65%, 2/15/17 | 725 | 745 | ||||||
7.25%, 6/15/19 | 440 | 531 | ||||||
4.75%, 11/15/21 | 500 | 546 | ||||||
6.13%, 11/15/41 | 100 | 124 | ||||||
Laboratory Corp. of America Holdings, | 135 | 136 | ||||||
McKesson Corp., | 275 | 302 | ||||||
1.40%, 3/15/18 | 80 | 78 | ||||||
2.70%, 12/15/22 | 120 | 115 | ||||||
3.80%, 3/15/24 | 160 | 161 | ||||||
6.00%, 3/1/41 | 250 | 295 | ||||||
4.88%, 3/15/44 | 105 | 108 | ||||||
Medco Health Solutions, Inc., | 300 | 349 | ||||||
Memorial Sloan-Kettering Cancer Center, | 100 | 97 | ||||||
Quest Diagnostics, Inc., | 250 | 262 | ||||||
6.40%, 7/1/17 | 100 | 113 | ||||||
4.75%, 1/30/20 | 340 | 367 | ||||||
5.75%, 1/30/40 | 185 | 202 | ||||||
5,279 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Home & Office Products Manufacturing – 0.0% |
| |||||||
Newell Rubbermaid, Inc., | $200 | $214 | ||||||
Home Improvement – 0.0% | ||||||||
Stanley Black & Decker, Inc., | 265 | 272 | ||||||
2.90%, 11/1/22 | 65 | 64 | ||||||
Whirlpool Corp., | 100 | 110 | ||||||
4.70%, 6/1/22 | 100 | 108 | ||||||
3.70%, 3/1/23 | 100 | 100 | ||||||
654 | ||||||||
Integrated Oils – 0.1% | ||||||||
Chevron Corp., | 120 | 120 | ||||||
1.72%, 6/24/18 | 200 | 200 | ||||||
4.95%, 3/3/19 | 300 | 335 | ||||||
3.19%, 6/24/23 | 625 | 629 | ||||||
ConocoPhillips Co., | 250 | 247 | ||||||
2.40%, 12/15/22 | 265 | 254 | ||||||
ConocoPhillips Holding Co., | 365 | 487 | ||||||
2,272 | ||||||||
Internet Media – 0.0% | ||||||||
Google, Inc., | 250 | 266 | ||||||
Leisure Products Manufacturing – 0.0% | ||||||||
Hasbro, Inc., | 35 | 35 | ||||||
6.35%, 3/15/40 | 250 | 299 | ||||||
Mattel, Inc., | 85 | 87 | ||||||
1.70%, 3/15/18 | 35 | 35 | ||||||
2.35%, 5/6/19 | 150 | 149 | ||||||
6.20%, 10/1/40 | 50 | 59 | ||||||
664 | ||||||||
Life Insurance – 0.4% | ||||||||
Aflac, Inc., | 500 | 633 | ||||||
6.90%, 12/17/39 | 80 | 106 | ||||||
6.45%, 8/15/40 | 55 | 69 |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 24 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Life Insurance – 0.4% – continued | ||||||||
Ameriprise Financial, Inc., | $75 | $91 | ||||||
5.30%, 3/15/20 | 95 | 108 | ||||||
4.00%, 10/15/23 | 250 | 261 | ||||||
Genworth Holdings, Inc., | 600 | 707 | ||||||
7.63%, 9/24/21 | 45 | 55 | ||||||
Lincoln National Corp., | 165 | 174 | ||||||
4.00%, 9/1/23 | 100 | 103 | ||||||
6.15%, 4/7/36 | 150 | 184 | ||||||
6.30%, 10/9/37 | 100 | 126 | ||||||
7.00%, 5/17/66 | 500 | 513 | ||||||
MetLife, Inc., | 165 | 182 | ||||||
3.05%, 12/15/22 | 200 | 197 | ||||||
4.37%, 9/15/23 | 150 | 160 | ||||||
6.38%, 6/15/34 | 150 | 192 | ||||||
5.70%, 6/15/35 | 700 | 838 | ||||||
6.40%, 12/15/36 | 150 | 167 | ||||||
Primerica, Inc., | 100 | 108 | ||||||
Principal Financial Group, Inc., | 65 | 65 | ||||||
6.05%, 10/15/36 | 60 | 74 | ||||||
4.63%, 9/15/42 | 40 | 41 | ||||||
Protective Life Corp., | 300 | 367 | ||||||
8.45%, 10/15/39 | 425 | 637 | ||||||
Prudential Financial, Inc., | 420 | 424 | ||||||
2.35%, 8/15/19 | 200 | 198 | ||||||
5.38%, 6/21/20 | 175 | 198 | ||||||
3.50%, 5/15/24 | 150 | 148 | ||||||
5.75%, 7/15/33 | 50 | 58 | ||||||
6.63%, 12/1/37 | 200 | 251 | ||||||
8.88%, 6/15/38 | 50 | 60 | ||||||
5.63%, 6/15/43 | 200 | 208 | ||||||
Reinsurance Group of America, Inc., | 500 | 585 | ||||||
Torchmark Corp., | 420 | 431 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Life Insurance – 0.4% – continued | ||||||||
Voya Financial, Inc., | $50 | $51 | ||||||
8,770 | ||||||||
Machinery Manufacturing – 0.3% | ||||||||
Caterpillar Financial Services Corp., | 150 | 154 | ||||||
2.05%, 8/1/16 | 150 | 153 | ||||||
1.75%, 3/24/17 | 100 | 101 | ||||||
5.85%, 9/1/17 | 592 | 666 | ||||||
1.30%, 3/1/18 | 40 | 40 | ||||||
5.45%, 4/15/18 | 300 | 337 | ||||||
Caterpillar, Inc., | 50 | 55 | ||||||
3.90%, 5/27/21 | 500 | 535 | ||||||
2.60%, 6/26/22 | 150 | 147 | ||||||
5.20%, 5/27/41 | 450 | 511 | ||||||
3.80%, 8/15/42 | 102 | 95 | ||||||
4.30%, 5/15/44 | 150 | 152 | ||||||
Deere & Co., | 125 | 121 | ||||||
8.10%, 5/15/30 | 100 | 147 | ||||||
Eaton Corp., | 215 | 214 | ||||||
2.75%, 11/2/22 | 1,000 | 964 | ||||||
IDEX Corp., | 200 | 205 | ||||||
Illinois Tool Works, Inc., | 130 | 129 | ||||||
3.38%, 9/15/21 | 250 | 260 | ||||||
3.90%, 9/1/42 | 200 | 191 | ||||||
John Deere Capital Corp., | 25 | 25 | ||||||
2.25%, 6/7/16 | 250 | 256 | ||||||
1.85%, 9/15/16 | 200 | 204 | ||||||
2.00%, 1/13/17 | 115 | 117 | ||||||
1.40%, 3/15/17 | 250 | 252 | ||||||
1.20%, 10/10/17 | 250 | 249 | ||||||
1.30%, 3/12/18 | 250 | 246 | ||||||
5.75%, 9/10/18 | 200 | 228 | ||||||
1.70%, 1/15/20 | 150 | 145 | ||||||
3.15%, 10/15/21 | 250 | 256 | ||||||
2.80%, 1/27/23 | 150 | 147 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 25 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Machinery Manufacturing – 0.3% – continued |
| |||||||
Kennametal, Inc., | $100 | $100 | ||||||
7,402 | ||||||||
Managed Care – 0.3% | ||||||||
Aetna, Inc., | 50 | 50 | ||||||
1.50%, 11/15/17 | 100 | 100 | ||||||
4.13%, 6/1/21 | 250 | 267 | ||||||
2.75%, 11/15/22 | 400 | 382 | ||||||
6.75%, 12/15/37 | 150 | 198 | ||||||
4.50%, 5/15/42 | 100 | 98 | ||||||
4.75%, 3/15/44 | 50 | 51 | ||||||
Cigna Corp., | 45 | 54 | ||||||
5.38%, 2/15/42 | 60 | 66 | ||||||
Humana, Inc., | 100 | 100 | ||||||
3.15%, 12/1/22 | 85 | 83 | ||||||
8.15%, 6/15/38 | 280 | 405 | ||||||
UnitedHealth Group, Inc., | 125 | 127 | ||||||
1.40%, 10/15/17 | 85 | 85 | ||||||
1.63%, 3/15/19 | 210 | 206 | ||||||
4.70%, 2/15/21 | 300 | 335 | ||||||
2.88%, 3/15/22 | 800 | 796 | ||||||
5.80%, 3/15/36 | 250 | 306 | ||||||
6.63%, 11/15/37 | 430 | 564 | ||||||
6.88%, 2/15/38 | 100 | 137 | ||||||
5.70%, 10/15/40 | 135 | 163 | ||||||
WellPoint, Inc., | 200 | 205 | ||||||
5.88%, 6/15/17 | 350 | 389 | ||||||
1.88%, 1/15/18 | 205 | 205 | ||||||
2.30%, 7/15/18 | 165 | 165 | ||||||
3.70%, 8/15/21 | 320 | 330 | ||||||
3.30%, 1/15/23 | 430 | 425 | ||||||
5.95%, 12/15/34 | 50 | 59 | ||||||
6,351 | ||||||||
Mass Merchants – 0.3% | ||||||||
Costco Wholesale Corp., | 250 | 276 | ||||||
1.13%, 12/15/17 | 400 | 396 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Mass Merchants – 0.3% – continued | ||||||||
Target Corp., | $575 | $635 | ||||||
3.88%, 7/15/20 | 195 | 209 | ||||||
2.90%, 1/15/22 | 515 | 510 | ||||||
6.50%, 10/15/37 | 125 | 161 | ||||||
7.00%, 1/15/38 | 325 | 434 | ||||||
Wal-Mart Stores, Inc., | 350 | 345 | ||||||
3.63%, 7/8/20 | 200 | 213 | ||||||
4.25%, 4/15/21 | 600 | 660 | ||||||
3.30%, 4/22/24 | 125 | 126 | ||||||
5.88%, 4/5/27 | 250 | 311 | ||||||
5.25%, 9/1/35 | 175 | 202 | ||||||
6.50%, 8/15/37 | 250 | 332 | ||||||
6.20%, 4/15/38 | 275 | 351 | ||||||
5.63%, 4/1/40 | 155 | 188 | ||||||
4.88%, 7/8/40 | 90 | 98 | ||||||
5.00%, 10/25/40 | 350 | 396 | ||||||
5.63%, 4/15/41 | 775 | 939 | ||||||
4.00%, 4/11/43 | 170 | 165 | ||||||
4.75%, 10/2/43 | 100 | 108 | ||||||
4.30%, 4/22/44 | 250 | 252 | ||||||
7,307 | ||||||||
Medical Equipment & Devices Manufacturing – 0.3% |
| |||||||
Agilent Technologies, Inc., | 225 | 219 | ||||||
3.88%, 7/15/23 | 250 | 250 | ||||||
Baxter International, Inc., | 110 | 110 | ||||||
1.85%, 1/15/17 | 100 | 101 | ||||||
5.38%, 6/1/18 | 225 | 252 | ||||||
2.40%, 8/15/22 | 200 | 189 | ||||||
6.25%, 12/1/37 | 30 | 38 | ||||||
3.65%, 8/15/42 | 30 | 27 | ||||||
4.50%, 6/15/43 | 125 | 129 | ||||||
Becton Dickinson and Co., | 250 | 254 | ||||||
3.25%, 11/12/20 | 430 | 445 | ||||||
3.13%, 11/8/21 | 150 | 154 | ||||||
6.00%, 5/15/39 | 290 | 363 | ||||||
Boston Scientific Corp., | 80 | 81 | ||||||
7.38%, 1/15/40 | 100 | 138 |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 26 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Medical Equipment & Devices Manufacturing – 0.3% – continued |
| |||||||
CareFusion Corp., | $125 | $144 | ||||||
3.30%, 3/1/23 | 130 | 127 | ||||||
CR Bard, Inc., | 160 | 158 | ||||||
Danaher Corp., | 200 | 225 | ||||||
3.90%, 6/23/21 | 250 | 269 | ||||||
Life Technologies Corp., | 250 | 258 | ||||||
6.00%, 3/1/20 | 500 | 577 | ||||||
Medtronic, Inc., | 500 | 539 | ||||||
3.13%, 3/15/22 | 150 | 149 | ||||||
2.75%, 4/1/23 | 80 | 77 | ||||||
6.50%, 3/15/39 | 100 | 131 | ||||||
5.55%, 3/15/40 | 200 | 237 | ||||||
4.50%, 3/15/42 | 100 | 102 | ||||||
St. Jude Medical, Inc., | 150 | 153 | ||||||
3.25%, 4/15/23 | 140 | 139 | ||||||
4.75%, 4/15/43 | 150 | 153 | ||||||
Stryker Corp., | 125 | 128 | ||||||
4.10%, 4/1/43 | 50 | 48 | ||||||
Thermo Fisher Scientific, Inc., | 100 | 102 | ||||||
1.85%, 1/15/18 | 115 | 115 | ||||||
3.60%, 8/15/21 | 250 | 257 | ||||||
4.15%, 2/1/24 | 100 | 104 | ||||||
Zimmer Holdings, Inc., | 250 | 254 | ||||||
5.75%, 11/30/39 | 100 | 117 | ||||||
7,313 | ||||||||
Metals & Mining – 0.2% | ||||||||
Allegheny Technologies, Inc., | 125 | 135 | ||||||
Barrick North America Finance LLC, | 175 | 204 | ||||||
4.40%, 5/30/21 | 500 | 506 | ||||||
7.50%, 9/15/38 | 100 | 118 | ||||||
Freeport-McMoRan Copper & Gold, Inc., | 245 | 246 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Metals & Mining – 0.2% – continued |
| |||||||
3.55%, 3/1/22 | $250 | $244 | ||||||
5.45%, 3/15/43 | 645 | 658 | ||||||
Newmont Mining Corp., | 585 | 542 | ||||||
5.88%, 4/1/35 | 100 | 98 | ||||||
4.88%, 3/15/42 | 150 | 126 | ||||||
Nucor Corp., | 200 | 227 | ||||||
4.00%, 8/1/23 | 250 | 256 | ||||||
6.40%, 12/1/37 | 150 | 180 | ||||||
5.20%, 8/1/43 | 125 | 131 | ||||||
Southern Copper Corp., | 300 | 358 | ||||||
6.75%, 4/16/40 | 90 | 100 | ||||||
4,129 | ||||||||
Oil & Gas Services & Equipment – 0.2% | ||||||||
Baker Hughes, Inc., | 100 | 102 | ||||||
5.13%, 9/15/40 | 210 | 234 | ||||||
Cameron International Corp., | 125 | 134 | ||||||
Halliburton Co., | 350 | 402 | ||||||
3.25%, 11/15/21 | 595 | 610 | ||||||
6.70%, 9/15/38 | 50 | 66 | ||||||
7.45%, 9/15/39 | 840 | 1,189 | ||||||
Nabors Industries, Inc., | 35 | 36 | ||||||
5.00%, 9/15/20 | 250 | 274 | ||||||
4.63%, 9/15/21 | 300 | 322 | ||||||
5.10%, 9/15/23 | 130 | 141 | ||||||
Pride International, Inc., | 1,000 | 1,179 | ||||||
Rowan Cos., Inc., | 200 | 216 | ||||||
5.40%, 12/1/42 | 75 | 70 | ||||||
5.85%, 1/15/44 | 135 | 133 | ||||||
Weatherford International LLC, | 100 | 112 | ||||||
5,220 | ||||||||
Pharmaceuticals – 0.7% | ||||||||
AbbVie, Inc., | 250 | 251 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 27 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Pharmaceuticals – 0.7% – continued |
| |||||||
1.75%, 11/6/17 | $265 | $264 | ||||||
2.90%, 11/6/22 | 500 | 478 | ||||||
4.40%, 11/6/42 | 415 | 390 | ||||||
Actavis, Inc., | 20 | 20 | ||||||
3.25%, 10/1/22 | 500 | 482 | ||||||
4.63%, 10/1/42 | 60 | 55 | ||||||
Allergan, Inc., | 100 | 97 | ||||||
Bristol-Myers Squibb Co., | 600 | 557 | ||||||
5.88%, 11/15/36 | 23 | 28 | ||||||
6.13%, 5/1/38 | 5 | 6 | ||||||
Eli Lilly & Co., | 525 | 576 | ||||||
1.95%, 3/15/19 | 35 | 35 | ||||||
5.55%, 3/15/37 | 250 | 299 | ||||||
GlaxoSmithKline Capital, Inc., | 300 | 300 | ||||||
5.65%, 5/15/18 | 800 | 906 | ||||||
5.38%, 4/15/34 | 150 | 175 | ||||||
6.38%, 5/15/38 | 530 | 682 | ||||||
4.20%, 3/18/43 | 20 | 19 | ||||||
Johnson & Johnson, | 350 | 393 | ||||||
3.55%, 5/15/21 | 250 | 269 | ||||||
6.95%, 9/1/29 | 100 | 140 | ||||||
4.38%, 12/5/33 | 250 | 273 | ||||||
5.95%, 8/15/37 | 100 | 129 | ||||||
4.85%, 5/15/41 | 400 | 460 | ||||||
Merck & Co., Inc., | 350 | 397 | ||||||
2.80%, 5/18/23 | 300 | 292 | ||||||
3.60%, 9/15/42 | 25 | 23 | ||||||
4.15%, 5/18/43 | 60 | 59 | ||||||
Merck Sharp & Dohme Corp., | 725 | 817 | ||||||
5.75%, 11/15/36 | 50 | 62 | ||||||
5.85%, 6/30/39 | 575 | 718 | ||||||
Mylan, Inc., | 95 | 96 | ||||||
1.35%, 11/29/16 | 55 | 55 | ||||||
5.40%, 11/29/43 | 85 | 90 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Pharmaceuticals – 0.7% – continued |
| |||||||
Novartis Capital Corp., | $185 | $205 | ||||||
2.40%, 9/21/22 | 40 | 39 | ||||||
3.40%, 5/6/24 | 250 | 254 | ||||||
4.40%, 5/6/44 | 250 | 260 | ||||||
Pfizer, Inc., | 1,000 | 1,169 | ||||||
3.40%, 5/15/24 | 150 | 150 | ||||||
7.20%, 3/15/39 | 700 | 988 | ||||||
Pharmacia Corp., | 125 | 162 | ||||||
Teva Pharmaceutical Finance Co. LLC, | 45 | 54 | ||||||
Wyeth LLC, | 425 | 453 | ||||||
5.95%, 4/1/37 | 225 | 276 | ||||||
Zoetis, Inc., | 40 | 40 | ||||||
3.25%, 2/1/23 | 500 | 489 | ||||||
4.70%, 2/1/43 | 40 | 40 | ||||||
14,472 | ||||||||
Pipeline – 0.7% | ||||||||
DCP Midstream Operating L.P., | 50 | 51 | ||||||
3.88%, 3/15/23 | 50 | 50 | ||||||
5.60%, 4/1/44 | 75 | 82 | ||||||
El Paso Natural Gas Co. LLC, | 350 | 386 | ||||||
8.38%, 6/15/32 | 100 | 132 | ||||||
El Paso Pipeline Partners Operating Co. LLC, | 155 | 137 | ||||||
Enable Midstream Partners L.P., | 200 | 199 | ||||||
Enbridge Energy Partners L.P., | 95 | 106 | ||||||
4.20%, 9/15/21 | 250 | 264 | ||||||
7.50%, 4/15/38 | 50 | 66 | ||||||
Energy Transfer Partners L.P., | 350 | 386 | ||||||
9.00%, 4/15/19 | 187 | 234 | ||||||
4.15%, 10/1/20 | 150 | 156 | ||||||
6.63%, 10/15/36 | 100 | 116 | ||||||
7.50%, 7/1/38 | 200 | 255 |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 28 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Pipeline – 0.7% – continued |
| |||||||
6.50%, 2/1/42 | $650 | $740 | ||||||
5.15%, 2/1/43 | 150 | 145 | ||||||
Enterprise Products Operating LLC, | 200 | 206 | ||||||
6.30%, 9/15/17 | 335 | 380 | ||||||
5.25%, 1/31/20 | 300 | 338 | ||||||
4.05%, 2/15/22 | 1,000 | 1,056 | ||||||
3.90%, 2/15/24 | 50 | 51 | ||||||
6.88%, 3/1/33 | 50 | 65 | ||||||
7.55%, 4/15/38 | 200 | 273 | ||||||
4.85%, 8/15/42 | 315 | 323 | ||||||
4.45%, 2/15/43 | 40 | 39 | ||||||
5.10%, 2/15/45 | 50 | 53 | ||||||
Kinder Morgan Energy Partners L.P., | 495 | 554 | ||||||
6.85%, 2/15/20 | 70 | 82 | ||||||
4.15%, 3/1/22 | 175 | 177 | ||||||
3.50%, 9/1/23 | 25 | 24 | ||||||
7.40%, 3/15/31 | 400 | 484 | ||||||
7.30%, 8/15/33 | 100 | 119 | ||||||
6.95%, 1/15/38 | 150 | 175 | ||||||
6.55%, 9/15/40 | 100 | 115 | ||||||
6.38%, 3/1/41 | 135 | 152 | ||||||
5.63%, 9/1/41 | 100 | 103 | ||||||
5.00%, 3/1/43 | 335 | 310 | ||||||
Magellan Midstream Partners L.P., | 200 | 216 | ||||||
5.15%, 10/15/43 | 50 | 54 | ||||||
ONEOK Partners L.P., | 135 | 139 | ||||||
6.15%, 10/1/16 | 200 | 219 | ||||||
2.00%, 10/1/17 | 75 | 75 | ||||||
3.20%, 9/15/18 | 85 | 88 | ||||||
8.63%, 3/1/19 | 350 | 436 | ||||||
6.20%, 9/15/43 | 100 | 115 | ||||||
Panhandle Eastern Pipe Line Co. L.P., | 100 | 113 | ||||||
Plains All American Pipeline L.P./PAA Finance Corp., | 200 | 221 | ||||||
6.50%, 5/1/18 | 300 | 346 | ||||||
5.00%, 2/1/21 | 290 | 322 | ||||||
3.85%, 10/15/23 | 250 | 254 | ||||||
5.15%, 6/1/42 | 150 | 160 | ||||||
4.30%, 1/31/43 | 100 | 95 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Pipeline – 0.7% – continued |
| |||||||
Southern Union Co., | $25 | $32 | ||||||
Spectra Energy Capital LLC, | 350 | 396 | ||||||
3.30%, 3/15/23 | 200 | 191 | ||||||
7.50%, 9/15/38 | 50 | 64 | ||||||
Spectra Energy Partners L.P., | 55 | 57 | ||||||
5.95%, 9/25/43 | 100 | 117 | ||||||
Sunoco Logistics Partners Operations L.P., | 165 | 175 | ||||||
4.25%, 4/1/24 | 35 | 35 | ||||||
5.30%, 4/1/44 | 100 | 102 | ||||||
Transcontinental Gas Pipe Line Co. LLC, | 130 | 142 | ||||||
Williams (The) Cos., Inc., | 200 | 232 | ||||||
8.75%, 3/15/32 | 192 | 244 | ||||||
Williams Partners L.P., | 310 | 321 | ||||||
3.35%, 8/15/22 | 460 | 450 | ||||||
6.30%, 4/15/40 | 130 | 153 | ||||||
5.80%, 11/15/43 | 200 | 221 | ||||||
Williams Partners L.P./Williams Partners Finance Corp., | 100 | 113 | ||||||
14,482 | ||||||||
Power Generation – 0.1% | ||||||||
Consumers Energy Co., | 62 | 67 | ||||||
6.13%, 3/15/19 | 200 | 233 | ||||||
2.85%, 5/15/22 | 545 | 543 | ||||||
Delmarva Power & Light Co., | 200 | 194 | ||||||
Exelon Generation Co. LLC, | 225 | 249 | ||||||
4.25%, 6/15/22 | 250 | 258 | ||||||
System Energy Resources, Inc., | 160 | 164 | ||||||
Wisconsin Public Service Corp., | 100 | 112 | ||||||
1,820 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 29 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Property & Casualty Insurance – 0.5% | ||||||||
ACE INA Holdings, Inc., | $300 | $339 | ||||||
5.90%, 6/15/19 | 355 | 410 | ||||||
6.70%, 5/15/36 | 50 | 67 | ||||||
4.15%, 3/13/43 | 100 | 98 | ||||||
Alleghany Corp., | 55 | 60 | ||||||
Allstate (The) Corp., | 50 | 59 | ||||||
6.13%, 5/15/37 | 100 | 107 | ||||||
5.20%, 1/15/42 | 225 | 259 | ||||||
6.50%, 5/15/57 | 225 | 247 | ||||||
American International Group, Inc., | 625 | 689 | ||||||
5.85%, 1/16/18 | 280 | 315 | ||||||
8.25%, 8/15/18 | 150 | 183 | ||||||
6.40%, 12/15/20 | 300 | 357 | ||||||
4.88%, 6/1/22 | 700 | 770 | ||||||
4.13%, 2/15/24 | 165 | 171 | ||||||
6.25%, 5/1/36 | 350 | 438 | ||||||
8.18%, 5/15/58 | 440 | 593 | ||||||
Assurant, Inc., | 50 | 50 | ||||||
Berkshire Hathaway Finance Corp., | 65 | 64 | ||||||
5.40%, 5/15/18 | 300 | 337 | ||||||
5.75%, 1/15/40 | 255 | 308 | ||||||
4.40%, 5/15/42 | 100 | 101 | ||||||
4.30%, 5/15/43 | 125 | 124 | ||||||
Berkshire Hathaway, Inc., | 40 | 40 | ||||||
1.90%, 1/31/17 | 125 | 127 | ||||||
4.50%, 2/11/43 | 300 | 305 | ||||||
Chubb (The) Corp., | 325 | 367 | ||||||
6.00%, 5/11/37 | 50 | 63 | ||||||
6.50%, 5/15/38 | 85 | 115 | ||||||
CNA Financial Corp., | 250 | 300 | ||||||
Hartford Financial Services Group (The), Inc., | 250 | 282 | ||||||
5.13%, 4/15/22 | 145 | 162 | ||||||
5.95%, 10/15/36 | 285 | 344 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Property & Casualty Insurance – 0.5% – continued |
| |||||||
Infinity Property & Casualty Corp., | $115 | $121 | ||||||
Loews Corp., | 250 | 235 | ||||||
4.13%, 5/15/43 | 75 | 71 | ||||||
Marsh & McLennan Cos., Inc., | 103 | 108 | ||||||
3.50%, 3/10/25 | 125 | 123 | ||||||
Progressive (The) Corp., | 330 | 348 | ||||||
Transatlantic Holdings, Inc., | 70 | 97 | ||||||
Travelers (The) Cos., Inc., | 150 | 158 | ||||||
5.80%, 5/15/18 | 375 | 426 | ||||||
6.25%, 6/15/37 | 375 | 481 | ||||||
5.35%, 11/1/40 | 25 | 29 | ||||||
4.60%, 8/1/43 | 75 | 79 | ||||||
10,527 | ||||||||
Publishing & Broadcasting – 0.3% | ||||||||
21st Century Fox America, Inc., | 30 | 36 | ||||||
4.50%, 2/15/21 | 535 | 581 | ||||||
3.00%, 9/15/22 | 460 | 447 | ||||||
6.40%, 12/15/35 | 55 | 68 | ||||||
6.15%, 3/1/37 | 70 | 83 | ||||||
6.65%, 11/15/37 | 550 | 690 | ||||||
7.85%, 3/1/39 | 100 | 141 | ||||||
6.90%, 8/15/39 | 310 | 398 | ||||||
Discovery Communications LLC, | 250 | 287 | ||||||
4.38%, 6/15/21 | 800 | 859 | ||||||
3.25%, 4/1/23 | 60 | 58 | ||||||
6.35%, 6/1/40 | 125 | 150 | ||||||
4.95%, 5/15/42 | 85 | 85 | ||||||
Historic TW, Inc., | 250 | 292 | ||||||
NBCUniversal Media LLC, | 965 | 995 | ||||||
4.38%, 4/1/21 | 650 | 708 | ||||||
2.88%, 1/15/23 | 470 | 461 | ||||||
6.40%, 4/30/40 | 115 | 148 | ||||||
4.45%, 1/15/43 | 60 | 60 | ||||||
6,547 |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 30 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Railroad – 0.3% | ||||||||
Burlington Northern Santa Fe LLC, | $100 | $113 | ||||||
4.10%, 6/1/21 | 20 | 21 | ||||||
3.45%, 9/15/21 | 50 | 51 | ||||||
3.05%, 9/1/22 | 525 | 518 | ||||||
3.75%, 4/1/24 | 355 | 362 | ||||||
3.40%, 9/1/24 | 100 | 99 | ||||||
6.20%, 8/15/36 | 325 | 408 | ||||||
6.15%, 5/1/37 | 140 | 174 | ||||||
4.95%, 9/15/41 | 250 | 269 | ||||||
4.40%, 3/15/42 | 280 | 276 | ||||||
CSX Corp., | 100 | 108 | ||||||
3.70%, 11/1/23 | 50 | 51 | ||||||
6.00%, 10/1/36 | 100 | 122 | ||||||
6.15%, 5/1/37 | 190 | 236 | ||||||
6.22%, 4/30/40 | 350 | 438 | ||||||
5.50%, 4/15/41 | 50 | 58 | ||||||
4.10%, 3/15/44 | 15 | 14 | ||||||
Norfolk Southern Corp., | 320 | 370 | ||||||
3.25%, 12/1/21 | 250 | 255 | ||||||
3.00%, 4/1/22 | 450 | 448 | ||||||
7.25%, 2/15/31 | 500 | 679 | ||||||
3.95%, 10/1/42 | 150 | 142 | ||||||
Union Pacific Corp., | 100 | 97 | ||||||
3.65%, 2/15/24 | 524 | 542 | ||||||
4.75%, 9/15/41 | 100 | 108 | ||||||
4.30%, 6/15/42 | 200 | 203 | ||||||
6,162 | ||||||||
Real Estate – 0.6% | ||||||||
Alexandria Real Estate Equities, Inc., | 100 | 105 | ||||||
American Tower Corp., | 400 | 455 | ||||||
4.50%, 1/15/18 | 130 | 139 | ||||||
4.70%, 3/15/22 | 375 | 393 | ||||||
AvalonBay Communities, Inc., | 150 | 175 | ||||||
3.63%, 10/1/20 | 75 | 78 | ||||||
2.95%, 9/15/22 | 50 | 49 | ||||||
BEX Portfolio LLC, | 200 | 223 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Real Estate – 0.6% – continued | ||||||||
BioMed Realty L.P., | $100 | $104 | ||||||
Boston Properties L.P., | 500 | 576 | ||||||
3.85%, 2/1/23 | 150 | 153 | ||||||
3.13%, 9/1/23 | 135 | 130 | ||||||
Brandywine Operating Partnership L.P., | 150 | 163 | ||||||
Camden Property Trust, | 150 | 144 | ||||||
Corporate Office Properties L.P., | 90 | 86 | ||||||
DDR Corp., | 150 | 151 | ||||||
4.63%, 7/15/22 | 100 | 106 | ||||||
Digital Realty Trust L.P., | 250 | 240 | ||||||
Duke Realty L.P., | 500 | 549 | ||||||
4.38%, 6/15/22 | 100 | 104 | ||||||
EPR Properties, | 50 | 60 | ||||||
5.75%, 8/15/22 | 100 | 109 | ||||||
Equity Commonwealth, | 75 | 82 | ||||||
Equity One, Inc., | 100 | 99 | ||||||
ERP Operating L.P., | 335 | 370 | ||||||
4.63%, 12/15/21 | 185 | 202 | ||||||
Essex Portfolio L.P., | 50 | 48 | ||||||
3.88%, 5/1/24 | 200 | 200 | ||||||
Federal Realty Investment Trust, | 25 | 24 | ||||||
HCP, Inc., | 150 | 166 | ||||||
2.63%, 2/1/20 | 155 | 153 | ||||||
5.38%, 2/1/21 | 745 | 831 | ||||||
3.15%, 8/1/22 | 100 | 97 | ||||||
3.88%, 8/15/24 | 100 | 98 | ||||||
Health Care REIT, Inc., | 500 | 519 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 31 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Real Estate – 0.6% – continued |
| |||||||
2.25%, 3/15/18 | $25 | $25 | ||||||
4.13%, 4/1/19 | 75 | 80 | ||||||
5.13%, 3/15/43 | 150 | 157 | ||||||
Healthcare Realty Trust, Inc., | 200 | 223 | ||||||
Highwoods Realty L.P., | 100 | 98 | ||||||
Hospitality Properties Trust, | 500 | 542 | ||||||
6.70%, 1/15/18 | 75 | 84 | ||||||
5.00%, 8/15/22 | 300 | 316 | ||||||
Kilroy Realty L.P., | 200 | 200 | ||||||
Kimco Realty Corp., | 240 | 239 | ||||||
Liberty Property L.P., | 50 | 57 | ||||||
4.13%, 6/15/22 | 250 | 259 | ||||||
4.40%, 2/15/24 | 80 | 84 | ||||||
Mid-America Apartments L.P., | 100 | 99 | ||||||
National Retail Properties, Inc., | 100 | 102 | ||||||
3.30%, 4/15/23 | 100 | 97 | ||||||
Piedmont Operating Partnership L.P., | 100 | 102 | ||||||
Prologis L.P., | 85 | 91 | ||||||
6.88%, 3/15/20 | 37 | 44 | ||||||
Realty Income Corp., | 250 | 250 | ||||||
3.25%, 10/15/22 | 265 | 259 | ||||||
4.65%, 8/1/23 | 185 | 197 | ||||||
Regency Centers L.P., | 25 | 28 | ||||||
Senior Housing Properties Trust, | 75 | 75 | ||||||
6.75%, 12/15/21 | 125 | 144 | ||||||
Simon Property Group L.P., | 225 | 230 | ||||||
2.75%, 2/1/23 | 100 | 96 | ||||||
UDR, Inc., | 165 | 176 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Real Estate – 0.6% – continued |
| |||||||
Ventas Realty L.P., | $100 | $115 | ||||||
Ventas Realty L.P./Ventas Capital Corp., | 200 | 213 | ||||||
4.75%, 6/1/21 | 50 | 54 | ||||||
4.25%, 3/1/22 | 340 | 354 | ||||||
Vornado Realty L.P., | 160 | 175 | ||||||
Washington Real Estate Investment Trust, | 215 | 233 | ||||||
Weyerhaeuser Co., | 185 | 196 | ||||||
12,875 | ||||||||
Refining & Marketing – 0.1% | ||||||||
Buckeye Partners L.P., | 85 | 95 | ||||||
Marathon Petroleum Corp., | 200 | 207 | ||||||
5.13%, 3/1/21 | 75 | 83 | ||||||
3.63%, 9/15/24 | 250 | 245 | ||||||
6.50%, 3/1/41 | 260 | 309 | ||||||
Phillips 66, | 150 | 156 | ||||||
Valero Energy Corp., | 100 | 129 | ||||||
7.50%, 4/15/32 | 765 | 981 | ||||||
10.50%, 3/15/39 | 325 | 529 | ||||||
2,734 | ||||||||
Restaurants – 0.1% | ||||||||
Darden Restaurants, Inc., | 24 | 22 | ||||||
McDonald’s Corp., | 750 | 846 | ||||||
5.35%, 3/1/18 | 100 | 112 | ||||||
3.63%, 5/20/21 | 100 | 106 | ||||||
6.30%, 10/15/37 | 75 | 96 | ||||||
3.70%, 2/15/42 | 100 | 92 | ||||||
Starbucks Corp., | 200 | 209 | ||||||
Yum! Brands, Inc., | 150 | 161 |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 32 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Restaurants – 0.1% – continued |
| |||||||
3.75%, 11/1/21 | $35 | $36 | ||||||
6.88%, 11/15/37 | 142 | 180 | ||||||
1,860 | ||||||||
Retail – Consumer Discretionary – 0.3% | ||||||||
Amazon.com, Inc., | 315 | 312 | ||||||
AutoZone, Inc., | 250 | 265 | ||||||
3.70%, 4/15/22 | 55 | 56 | ||||||
3.13%, 7/15/23 | 135 | 131 | ||||||
eBay, Inc., | 250 | 253 | ||||||
2.20%, 8/1/19 | 100 | 99 | ||||||
4.00%, 7/15/42 | 235 | 206 | ||||||
Home Depot (The), Inc., | 800 | 853 | ||||||
2.25%, 9/10/18 | 65 | 66 | ||||||
4.40%, 4/1/21 | 250 | 278 | ||||||
2.70%, 4/1/23 | 125 | 121 | ||||||
5.88%, 12/16/36 | 350 | 431 | ||||||
5.95%, 4/1/41 | 250 | 311 | ||||||
4.88%, 2/15/44 | 100 | 109 | ||||||
Lowe’s Cos., Inc., | 325 | 340 | ||||||
1.63%, 4/15/17 | 50 | 50 | ||||||
4.63%, 4/15/20 | 100 | 111 | ||||||
3.12%, 4/15/22 | 500 | 506 | ||||||
3.88%, 9/15/23 | 150 | 157 | ||||||
3.13%, 9/15/24 | 150 | 146 | ||||||
5.80%, 10/15/36 | 100 | 119 | ||||||
5.80%, 4/15/40 | 350 | 422 | ||||||
5.13%, 11/15/41 | 50 | 56 | ||||||
4.65%, 4/15/42 | 50 | 52 | ||||||
QVC, Inc., | 165 | 163 | ||||||
Staples, Inc., | 125 | 127 | ||||||
TJX (The) Cos., Inc., | 150 | 150 | ||||||
2.50%, 5/15/23 | 205 | 196 | ||||||
6,086 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Retail – Consumer Staples – 0.0% | ||||||||
Bunge Ltd. Finance Corp., | $140 | $146 | ||||||
3.20%, 6/15/17 | 250 | 259 | ||||||
8.50%, 6/15/19 | 60 | 74 | ||||||
Sysco Corp., | 95 | 91 | ||||||
6.63%, 3/17/39 | 200 | 268 | ||||||
838 | ||||||||
Semiconductors – 0.1% | ||||||||
Altera Corp., | 35 | 35 | ||||||
2.50%, 11/15/18 | 30 | 30 | ||||||
Applied Materials, Inc., | 100 | 119 | ||||||
Broadcom Corp., | 365 | 347 | ||||||
Intel Corp., | 750 | 748 | ||||||
2.70%, 12/15/22 | 450 | 438 | ||||||
4.00%, 12/15/32 | 150 | 148 | ||||||
4.80%, 10/1/41 | 250 | 261 | ||||||
Maxim Integrated Products, Inc., | 50 | 48 | ||||||
Texas Instruments, Inc., | 300 | 293 | ||||||
2,467 | ||||||||
Software & Services – 0.6% | ||||||||
Autodesk, Inc., | 75 | 75 | ||||||
CA, Inc., | 80 | 81 | ||||||
4.50%, 8/15/23 | 250 | 258 | ||||||
Equifax, Inc., | 365 | 359 | ||||||
International Business Machines Corp., | 250 | 251 | ||||||
5.70%, 9/14/17 | 595 | 667 | ||||||
7.63%, 10/15/18 | 475 | 576 | ||||||
8.38%, 11/1/19 | 700 | 903 | ||||||
1.88%, 8/1/22 | 470 | 432 | ||||||
3.38%, 8/1/23 | 800 | 808 | ||||||
6.50%, 1/15/28 | 100 | 129 | ||||||
5.60%, 11/30/39 | 275 | 329 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 33 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Software & Services – 0.6% – continued |
| |||||||
Intuit, Inc., | $100 | $110 | ||||||
Leidos Holdings, Inc., | 200 | 200 | ||||||
McGraw Hill Financial, Inc., | 75 | 82 | ||||||
Microsoft Corp., | 125 | 123 | ||||||
1.00%, 5/1/18 | 100 | 98 | ||||||
4.20%, 6/1/19 | 250 | 274 | ||||||
3.63%, 12/15/23 | 320 | 334 | ||||||
5.20%, 6/1/39 | 200 | 229 | ||||||
4.50%, 10/1/40 | 700 | 728 | ||||||
5.30%, 2/8/41 | 190 | 221 | ||||||
Moody’s Corp., | 250 | 270 | ||||||
Oracle Corp., | 295 | 335 | ||||||
5.00%, 7/8/19 | 530 | 595 | ||||||
2.25%, 10/8/19 | 500 | 498 | ||||||
2.80%, 7/8/21 | 50 | 50 | ||||||
2.50%, 10/15/22 | 535 | 511 | ||||||
6.50%, 4/15/38 | 550 | 707 | ||||||
6.13%, 7/8/39 | 100 | 124 | ||||||
Symantec Corp., | 410 | 419 | ||||||
4.20%, 9/15/20 | 140 | 145 | ||||||
Xerox Corp., | 500 | 560 | ||||||
6.35%, 5/15/18 | 700 | 800 | ||||||
5.63%, 12/15/19 | 120 | 136 | ||||||
3.80%, 5/15/24 | 130 | 128 | ||||||
6.75%, 12/15/39 | 60 | 74 | ||||||
12,619 | ||||||||
Supermarkets & Pharmacies – 0.1% | ||||||||
CVS Caremark Corp., | 211 | 235 | ||||||
2.25%, 8/12/19 | 95 | 94 | ||||||
4.75%, 5/18/20 | 250 | 279 | ||||||
4.13%, 5/15/21 | 100 | 107 | ||||||
2.75%, 12/1/22 | 350 | 334 | ||||||
Kroger (The) Co., | 80 | 83 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Supermarkets & Pharmacies – 0.1% – continued |
| |||||||
2.20%, 1/15/17 | $190 | $194 | ||||||
6.15%, 1/15/20 | 25 | 29 | ||||||
3.40%, 4/15/22 | 400 | 401 | ||||||
7.50%, 4/1/31 | 200 | 261 | ||||||
6.90%, 4/15/38 | 100 | 128 | ||||||
Safeway, Inc., | 53 | 56 | ||||||
5.00%, 8/15/19 | 235 | 235 | ||||||
3.95%, 8/15/20 | 100 | 100 | ||||||
Walgreen Co., | 525 | 583 | ||||||
3,119 | ||||||||
Tobacco – 0.3% | ||||||||
Altria Group, Inc., | 341 | 439 | ||||||
9.25%, 8/6/19 | 56 | 73 | ||||||
4.75%, 5/5/21 | 725 | 790 | ||||||
2.85%, 8/9/22 | 100 | 96 | ||||||
2.95%, 5/2/23 | 100 | 95 | ||||||
9.95%, 11/10/38 | 49 | 81 | ||||||
10.20%, 2/6/39 | 33 | 56 | ||||||
4.25%, 8/9/42 | 135 | 123 | ||||||
4.50%, 5/2/43 | 250 | 236 | ||||||
5.38%, 1/31/44 | 120 | 128 | ||||||
Lorillard Tobacco Co., | 100 | 101 | ||||||
Philip Morris International, Inc., | 100 | 103 | ||||||
1.63%, 3/20/17 | 500 | 505 | ||||||
5.65%, 5/16/18 | 625 | 707 | ||||||
4.50%, 3/26/20 | 250 | 275 | ||||||
4.13%, 5/17/21 | 250 | 270 | ||||||
2.90%, 11/15/21 | 300 | 300 | ||||||
2.63%, 3/6/23 | 100 | 96 | ||||||
6.38%, 5/16/38 | 280 | 351 | ||||||
3.88%, 8/21/42 | 150 | 136 | ||||||
4.13%, 3/4/43 | 100 | 94 | ||||||
4.88%, 11/15/43 | 100 | 106 | ||||||
Reynolds American, Inc., | 175 | 169 | ||||||
4.75%, 11/1/42 | 205 | 195 | ||||||
6.15%, 9/15/43 | 65 | 74 | ||||||
5,599 |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 34 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Transportation & Logistics – 0.1% |
| |||||||
Cummins, Inc., | $90 | $100 | ||||||
FedEx Corp., | 290 | 357 | ||||||
2.70%, 4/15/23 | 35 | 33 | ||||||
4.00%, 1/15/24 | 100 | 103 | ||||||
3.88%, 8/1/42 | 50 | 45 | ||||||
4.10%, 4/15/43 | 50 | 47 | ||||||
JB Hunt Transport Services, Inc., | 95 | 98 | ||||||
PACCAR Financial Corp., | 130 | 130 | ||||||
0.80%, 2/8/16 | 70 | 70 | ||||||
1.15%, 8/16/16 | 65 | 65 | ||||||
1.60%, 3/15/17 | 90 | 91 | ||||||
2.20%, 9/15/19 | 100 | 100 | ||||||
Ryder System, Inc., | 85 | 88 | ||||||
2.50%, 3/1/17 | 65 | 67 | ||||||
3.50%, 6/1/17 | 45 | 47 | ||||||
2.50%, 3/1/18 | 100 | 102 | ||||||
2.55%, 6/1/19 | 135 | 135 | ||||||
United Parcel Service of America, Inc., | 50 | 65 | ||||||
United Parcel Service, Inc., | 775 | 870 | ||||||
3.13%, 1/15/21 | 155 | 161 | ||||||
6.20%, 1/15/38 | 160 | 208 | ||||||
3.63%, 10/1/42 | 105 | 96 | ||||||
3,078 | ||||||||
Travel & Lodging – 0.1% | ||||||||
Hyatt Hotels Corp., | 105 | 102 | ||||||
Marriott International, Inc., | 250 | 256 | ||||||
3.38%, 10/15/20 | 125 | 128 | ||||||
3.25%, 9/15/22 | 50 | 50 | ||||||
Starwood Hotels & Resorts Worldwide, Inc., | 200 | 232 | ||||||
3.13%, 2/15/23 | 150 | 144 | ||||||
Wyndham Worldwide Corp., | 185 | 190 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Travel & Lodging – 0.1% – continued |
| |||||||
2.50%, 3/1/18 | $20 | $20 | ||||||
4.25%, 3/1/22 | 100 | 101 | ||||||
1,223 | ||||||||
Utilities – 1.8% | ||||||||
AGL Capital Corp., | 150 | 154 | ||||||
5.88%, 3/15/41 | 100 | 123 | ||||||
Alabama Power Co., | 60 | 60 | ||||||
6.13%, 5/15/38 | 50 | 64 | ||||||
5.50%, 3/15/41 | 150 | 181 | ||||||
4.10%, 1/15/42 | 75 | 75 | ||||||
3.85%, 12/1/42 | 60 | 58 | ||||||
Ameren Illinois Co., | 250 | 246 | ||||||
American Electric Power Co., Inc., | 40 | 40 | ||||||
American Water Capital Corp., | 35 | 35 | ||||||
6.59%, 10/15/37 | 125 | 165 | ||||||
4.30%, 12/1/42 | 75 | 74 | ||||||
Appalachian Power Co., | 250 | 276 | ||||||
7.00%, 4/1/38 | 75 | 102 | ||||||
Arizona Public Service Co., | 230 | 239 | ||||||
4.70%, 1/15/44 | 100 | 108 | ||||||
Atmos Energy Corp., | 250 | 249 | ||||||
Baltimore Gas & Electric Co., | 50 | 55 | ||||||
3.50%, 11/15/21 | 275 | 288 | ||||||
Berkshire Hathaway Energy Co., | 600 | 743 | ||||||
6.50%, 9/15/37 | 200 | 259 | ||||||
CenterPoint Energy Houston Electric LLC, | 105 | 100 | ||||||
4.50%, 4/1/44 | 50 | 53 | ||||||
CenterPoint Energy Resources Corp., | 85 | 96 | ||||||
6.63%, 11/1/37 | 50 | 66 | ||||||
5.85%, 1/15/41 | 50 | 61 | ||||||
CenterPoint Energy, Inc., | 40 | 46 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 35 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Utilities – 1.8% – continued |
| |||||||
Cleveland Electric Illuminating (The) Co., | $130 | $141 | ||||||
CMS Energy Corp., | 200 | 234 | ||||||
4.70%, 3/31/43 | 40 | 40 | ||||||
Commonwealth Edison Co., | 125 | 136 | ||||||
1.95%, 9/1/16 | 100 | 102 | ||||||
6.15%, 9/15/17 | 225 | 254 | ||||||
5.80%, 3/15/18 | 300 | 340 | ||||||
6.45%, 1/15/38 | 200 | 271 | ||||||
3.80%, 10/1/42 | 90 | 85 | ||||||
4.60%, 8/15/43 | 100 | 106 | ||||||
Connecticut Light & Power (The) Co., | 420 | 402 | ||||||
4.30%, 4/15/44 | 15 | 15 | ||||||
Consolidated Edison Co. of New York, Inc., | 250 | 276 | ||||||
5.30%, 3/1/35 | 150 | 172 | ||||||
5.85%, 3/15/36 | 100 | 122 | ||||||
6.20%, 6/15/36 | 200 | 253 | ||||||
6.75%, 4/1/38 | 100 | 134 | ||||||
5.50%, 12/1/39 | 85 | 100 | ||||||
5.70%, 6/15/40 | 100 | 121 | ||||||
4.45%, 3/15/44 | 100 | 102 | ||||||
Constellation Energy Group, Inc., | 100 | 133 | ||||||
Dominion Resources, Inc., | 200 | 203 | ||||||
1.40%, 9/15/17 | 150 | 149 | ||||||
6.00%, 11/30/17 | 100 | 113 | ||||||
6.40%, 6/15/18 | 20 | 23 | ||||||
5.25%, 8/1/33 | 250 | 283 | ||||||
5.95%, 6/15/35 | 250 | 302 | ||||||
7.00%, 6/15/38 | 20 | 27 | ||||||
4.90%, 8/1/41 | 35 | 37 | ||||||
4.05%, 9/15/42 | 100 | 93 | ||||||
DTE Electric Co., | 125 | 141 | ||||||
6.63%, 6/1/36 | 200 | 269 | ||||||
5.70%, 10/1/37 | 50 | 62 | ||||||
3.95%, 6/15/42 | 100 | 97 | ||||||
DTE Energy Co., | 50 | 63 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Utilities – 1.8% – continued |
| |||||||
Duke Energy Carolinas LLC, | $100 | $105 | ||||||
1.75%, 12/15/16 | 70 | 71 | ||||||
5.25%, 1/15/18 | 200 | 222 | ||||||
5.10%, 4/15/18 | 65 | 72 | ||||||
3.90%, 6/15/21 | 50 | 54 | ||||||
6.45%, 10/15/32 | 106 | 137 | ||||||
6.10%, 6/1/37 | 150 | 186 | ||||||
6.00%, 1/15/38 | 35 | 45 | ||||||
6.05%, 4/15/38 | 175 | 223 | ||||||
Duke Energy Corp., | 100 | 100 | ||||||
6.25%, 6/15/18 | 100 | 115 | ||||||
3.75%, 4/15/24 | 100 | 102 | ||||||
Duke Energy Florida, Inc., | 100 | 100 | ||||||
5.80%, 9/15/17 | 50 | 56 | ||||||
5.65%, 6/15/18 | 225 | 256 | ||||||
3.10%, 8/15/21 | 25 | 26 | ||||||
6.35%, 9/15/37 | 50 | 67 | ||||||
6.40%, 6/15/38 | 285 | 380 | ||||||
Duke Energy Indiana, Inc., | 250 | 334 | ||||||
4.20%, 3/15/42 | 100 | 101 | ||||||
Duke Energy Ohio, Inc., | 130 | 136 | ||||||
Duke Energy Progress, Inc., | 150 | 170 | ||||||
3.00%, 9/15/21 | 150 | 152 | ||||||
2.80%, 5/15/22 | 100 | 99 | ||||||
4.10%, 3/15/43 | 200 | 199 | ||||||
Entergy Corp., | 125 | 134 | ||||||
Entergy Louisiana LLC, | 100 | 116 | ||||||
5.40%, 11/1/24 | 150 | 175 | ||||||
Entergy Texas, Inc., | 250 | 298 | ||||||
Exelon Corp., | 75 | 84 | ||||||
Florida Power & Light Co., | 225 | 253 | ||||||
5.65%, 2/1/37 | 350 | 429 | ||||||
5.95%, 2/1/38 | 150 | 189 |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 36 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Utilities – 1.8% – continued |
| |||||||
5.69%, 3/1/40 | $400 | $498 | ||||||
4.13%, 2/1/42 | 250 | 251 | ||||||
4.05%, 6/1/42 | 100 | 100 | ||||||
Georgia Power Co., | 65 | 65 | ||||||
4.25%, 12/1/19 | 500 | 549 | ||||||
2.85%, 5/15/22 | 100 | 99 | ||||||
5.40%, 6/1/40 | 250 | 289 | ||||||
4.30%, 3/15/42 | 60 | 60 | ||||||
4.30%, 3/15/43 | 100 | 100 | ||||||
Interstate Power & Light Co., | 50 | 55 | ||||||
Kansas City Power & Light Co., | 500 | 498 | ||||||
5.30%, 10/1/41 | 50 | 56 | ||||||
KeySpan Corp., | 175 | 206 | ||||||
MidAmerican Energy Co., | 500 | 557 | ||||||
3.50%, 10/15/24 | 100 | 102 | ||||||
4.80%, 9/15/43 | 100 | 109 | ||||||
4.40%, 10/15/44 | 150 | 154 | ||||||
Midamerican Funding LLC, | 50 | 65 | ||||||
Mississippi Power Co., | 355 | 349 | ||||||
National Fuel Gas Co., | 150 | 161 | ||||||
3.75%, 3/1/23 | 250 | 248 | ||||||
Nevada Power Co., | 100 | 132 | ||||||
5.45%, 5/15/41 | 35 | 42 | ||||||
NextEra Energy Capital Holdings, Inc., | 25 | 26 | ||||||
NiSource Finance Corp., | 450 | 496 | ||||||
5.45%, 9/15/20 | 200 | 225 | ||||||
4.45%, 12/1/21 | 165 | 177 | ||||||
5.95%, 6/15/41 | 100 | 117 | ||||||
5.25%, 2/15/43 | 100 | 108 | ||||||
4.80%, 2/15/44 | 80 | 81 | ||||||
Northeast Utilities, | 90 | 89 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Utilities – 1.8% – continued |
| |||||||
Northern States Power Co., | $125 | $140 | ||||||
6.25%, 6/1/36 | 100 | 131 | ||||||
5.35%, 11/1/39 | 65 | 77 | ||||||
NSTAR Electric Co., | 100 | 96 | ||||||
Oglethorpe Power Corp., | 150 | 171 | ||||||
4.20%, 12/1/42 | 50 | 48 | ||||||
4.55%, 6/1/44 | 260 | 260 | ||||||
Ohio Power Co., | 100 | 129 | ||||||
Oklahoma Gas & Electric Co., | 65 | 68 | ||||||
Oncor Electric Delivery Co. LLC, | 225 | 264 | ||||||
4.10%, 6/1/22 | 250 | 268 | ||||||
7.25%, 1/15/33 | 200 | 283 | ||||||
7.50%, 9/1/38 | 145 | 212 | ||||||
Pacific Gas & Electric Co., | 660 | 739 | ||||||
4.25%, 5/15/21 | 150 | 163 | ||||||
3.25%, 9/15/21 | 45 | 46 | ||||||
2.45%, 8/15/22 | 100 | 95 | ||||||
6.05%, 3/1/34 | 550 | 678 | ||||||
5.80%, 3/1/37 | 100 | 120 | ||||||
5.40%, 1/15/40 | 160 | 183 | ||||||
3.75%, 8/15/42 | 50 | 46 | ||||||
4.60%, 6/15/43 | 125 | 129 | ||||||
PacifiCorp, | 100 | 101 | ||||||
5.25%, 6/15/35 | 50 | 58 | ||||||
6.10%, 8/1/36 | 200 | 259 | ||||||
6.25%, 10/15/37 | 275 | 357 | ||||||
6.00%, 1/15/39 | 60 | 76 | ||||||
PECO Energy Co., | 25 | 28 | ||||||
4.80%, 10/15/43 | 100 | 112 | ||||||
Pennsylvania Electric Co., | 300 | 336 | ||||||
Potomac Electric Power Co., | 150 | 154 | ||||||
PPL Capital Funding, Inc., | 50 | 53 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 37 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Utilities – 1.8% – continued |
| |||||||
3.50%, 12/1/22 | $35 | $35 | ||||||
5.00%, 3/15/44 | 100 | 108 | ||||||
PPL Electric Utilities Corp., | 250 | 253 | ||||||
2.50%, 9/1/22 | 50 | 49 | ||||||
6.25%, 5/15/39 | 275 | 362 | ||||||
5.20%, 7/15/41 | 35 | 41 | ||||||
4.13%, 6/15/44 | 100 | 101 | ||||||
Progress Energy, Inc., | 160 | 161 | ||||||
7.75%, 3/1/31 | 50 | 70 | ||||||
PSEG Power LLC, | 175 | 184 | ||||||
2.75%, 9/15/16 | 35 | 36 | ||||||
2.45%, 11/15/18 | 35 | 35 | ||||||
Public Service Co. of Colorado, | 1,000 | 1,038 | ||||||
2.25%, 9/15/22 | 100 | 95 | ||||||
2.50%, 3/15/23 | 150 | 144 | ||||||
Public Service Co. of Oklahoma, | 50 | 55 | ||||||
6.63%, 11/15/37 | 125 | 165 | ||||||
Public Service Electric & Gas Co., | 575 | 645 | ||||||
2.30%, 9/15/18 | 165 | 168 | ||||||
5.38%, 11/1/39 | 250 | 300 | ||||||
3.95%, 5/1/42 | 50 | 49 | ||||||
3.65%, 9/1/42 | 30 | 28 | ||||||
Puget Sound Energy, Inc., | 25 | 30 | ||||||
6.27%, 3/15/37 | 75 | 98 | ||||||
5.80%, 3/15/40 | 250 | 311 | ||||||
5.64%, 4/15/41 | 80 | 98 | ||||||
San Diego Gas & Electric Co., | 65 | 66 | ||||||
3.60%, 9/1/23 | 200 | 209 | ||||||
6.13%, 9/15/37 | 50 | 64 | ||||||
4.50%, 8/15/40 | 150 | 159 | ||||||
3.95%, 11/15/41 | 100 | 99 | ||||||
4.30%, 4/1/42 | 150 | 155 | ||||||
SCANA Corp., | 75 | 81 | ||||||
4.13%, 2/1/22 | 135 | 139 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Utilities – 1.8% – continued |
| |||||||
Sempra Energy, | $80 | $82 | ||||||
6.15%, 6/15/18 | 400 | 457 | ||||||
2.88%, 10/1/22 | 60 | 58 | ||||||
6.00%, 10/15/39 | 250 | 311 | ||||||
Sierra Pacific Power Co., | 250 | 270 | ||||||
3.38%, 8/15/23 | 160 | 162 | ||||||
South Carolina Electric & Gas Co., | 116 | 131 | ||||||
6.05%, 1/15/38 | 265 | 336 | ||||||
4.35%, 2/1/42 | 115 | 117 | ||||||
Southern (The) Co., | 200 | 204 | ||||||
2.45%, 9/1/18 | 35 | 36 | ||||||
Southern California Edison Co., | 100 | 113 | ||||||
3.88%, 6/1/21 | 150 | 162 | ||||||
6.65%, 4/1/29 | 300 | 385 | ||||||
6.00%, 1/15/34 | 100 | 126 | ||||||
5.55%, 1/15/37 | 275 | 333 | ||||||
5.95%, 2/1/38 | 100 | 125 | ||||||
6.05%, 3/15/39 | 50 | 64 | ||||||
5.50%, 3/15/40 | 150 | 182 | ||||||
3.90%, 3/15/43 | 150 | 143 | ||||||
Southern California Gas Co., | 150 | 188 | ||||||
3.75%, 9/15/42 | 75 | 71 | ||||||
Southern Power Co., | 60 | 67 | ||||||
Southwestern Electric Power Co., | 400 | 450 | ||||||
3.55%, 2/15/22 | 150 | 154 | ||||||
6.20%, 3/15/40 | 200 | 255 | ||||||
Southwestern Public Service Co., | 100 | 122 | ||||||
Tampa Electric Co., | 220 | 212 | ||||||
4.10%, 6/15/42 | 50 | 49 | ||||||
Union Electric Co., | 400 | 449 | ||||||
3.90%, 9/15/42 | 50 | 48 | ||||||
Virginia Electric and Power Co., | 75 | 74 |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 38 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Utilities – 1.8% – continued |
| |||||||
5.40%, 4/30/18 | $425 | $477 | ||||||
2.95%, 1/15/22 | 95 | 96 | ||||||
6.00%, 1/15/36 | 50 | 63 | ||||||
8.88%, 11/15/38 | 300 | 492 | ||||||
4.65%, 8/15/43 | 150 | 161 | ||||||
4.45%, 2/15/44 | 75 | 78 | ||||||
Westar Energy, Inc., | 215 | 213 | ||||||
4.10%, 4/1/43 | 60 | 60 | ||||||
4.63%, 9/1/43 | 150 | 160 | ||||||
Western Massachusetts Electric Co., | 85 | 89 | ||||||
Wisconsin Electric Power Co., | 150 | 188 | ||||||
Wisconsin Power & Light Co., | 300 | 286 | ||||||
Xcel Energy, Inc., | 100 | 111 | ||||||
6.50%, 7/1/36 | 100 | 131 | ||||||
40,719 | ||||||||
Waste & Environment Services & Equipment – 0.1% |
| |||||||
Republic Services, Inc., | 165 | 175 | ||||||
5.50%, 9/15/19 | 220 | 250 | ||||||
5.00%, 3/1/20 | 400 | 443 | ||||||
5.25%, 11/15/21 | 500 | 567 | ||||||
3.55%, 6/1/22 | 100 | 102 | ||||||
Waste Management, Inc., | 35 | 36 | ||||||
6.10%, 3/15/18 | 250 | 285 | ||||||
2.90%, 9/15/22 | 110 | 108 | ||||||
7.10%, 8/1/26 | 125 | 163 | ||||||
7.75%, 5/15/32 | 170 | 242 | ||||||
6.13%, 11/30/39 | 400 | 495 | ||||||
2,866 | ||||||||
Wireless Telecommunications Services – 0.7% |
| |||||||
Alltel Corp., | 100 | 142 | ||||||
AT&T, Inc., | 210 | 210 | ||||||
2.95%, 5/15/16 | 500 | 516 | ||||||
2.38%, 11/27/18 | 285 | 288 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 19.1% – continued | ||||||||
Wireless Telecommunications Services – 0.7% – continued |
| |||||||
2.63%, 12/1/22 | $1,395 | $1,320 | ||||||
6.15%, 9/15/34 | 125 | 149 | ||||||
6.50%, 9/1/37 | 600 | 729 | ||||||
6.30%, 1/15/38 | 515 | 609 | ||||||
6.40%, 5/15/38 | 99 | 122 | ||||||
6.55%, 2/15/39 | 85 | 107 | ||||||
5.35%, 9/1/40 | 500 | 530 | ||||||
New Cingular Wireless Services, Inc., | 400 | 609 | ||||||
Verizon Communications, Inc., | 100 | 103 | ||||||
6.35%, 4/1/19 | 305 | 355 | ||||||
4.60%, 4/1/21 | 225 | 245 | ||||||
3.50%, 11/1/21 | 90 | 91 | ||||||
5.15%, 9/15/23 | 740 | 819 | ||||||
7.75%, 12/1/30 | 500 | 687 | ||||||
7.75%, 6/15/32 | 140 | 198 | ||||||
6.40%, 9/15/33 | 1,000 | 1,218 | ||||||
5.05%, 3/15/34 | 110 | 117 | ||||||
6.25%, 4/1/37 | 740 | 895 | ||||||
6.40%, 2/15/38 | 1,365 | 1,653 | ||||||
8.95%, 3/1/39 | 650 | 1,024 | ||||||
7.35%, 4/1/39 | 815 | 1,103 | ||||||
6.00%, 4/1/41 | 180 | 210 | ||||||
6.55%, 9/15/43 | 590 | 737 | ||||||
Verizon New York, Inc., | 150 | 185 | ||||||
14,971 | ||||||||
Wireline Telecommunications Services – 0.1% |
| |||||||
Embarq Corp., | 265 | 286 | ||||||
GTE Corp., | 870 | 1,165 | ||||||
6.94%, 4/15/28 | 150 | 183 | ||||||
Qwest Corp., | 125 | 125 | ||||||
1,759 | ||||||||
Total Corporate Bonds | ||||||||
(Cost $404,558) | 430,705 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 39 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 9.0% | ||||||||
Advertising & Marketing – 0.0% |
| |||||||
WPP Finance 2010, | $100 | $101 | ||||||
Banks – 0.8% | ||||||||
Abbey National Treasury Services PLC, | 145 | 152 | ||||||
3.05%, 8/23/18 | 200 | 207 | ||||||
4.00%, 3/13/24 | 250 | 253 | ||||||
Australia & New Zealand Banking Group Ltd., | 250 | 251 | ||||||
Barclays Bank PLC, | 500 | 539 | ||||||
3.75%, 5/15/24 | 165 | 164 | ||||||
BPCE S.A., | 250 | 250 | ||||||
2.50%, 7/15/19 | 500 | 496 | ||||||
4.00%, 4/15/24 | 250 | 252 | ||||||
Canadian Imperial Bank of Commerce, | 315 | 316 | ||||||
1.35%, 7/18/16 | 250 | 253 | ||||||
1.55%, 1/23/18 | 150 | 150 | ||||||
Commonwealth Bank of Australia, | 300 | 299 | ||||||
2.50%, 9/20/18 | 250 | 255 | ||||||
2.25%, 3/13/19 | 250 | 250 | ||||||
Cooperatieve Centrale Raiffeisen- Boerenleenbank B.A., | 125 | 125 | ||||||
4.50%, 1/11/21 | 1,000 | 1,091 | ||||||
3.88%, 2/8/22 | 750 | 790 | ||||||
3.95%, 11/9/22 | 250 | 251 | ||||||
Credit Suisse, | 250 | 280 | ||||||
5.30%, 8/13/19 | 1,000 | 1,124 | ||||||
5.40%, 1/14/20 | 500 | 558 | ||||||
3.63%, 9/9/24 | 250 | 247 | ||||||
Deutsche Bank A.G., | 150 | 155 | ||||||
6.00%, 9/1/17 | 1,225 | 1,371 | ||||||
Lloyds Bank PLC, | 750 | 744 | ||||||
National Australia Bank Ltd., | 250 | 251 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 9.0% – continued | ||||||||
Banks – 0.8% – continued |
| |||||||
1.30%, 7/25/16 | $250 | $252 | ||||||
2.75%, 3/9/17 | 250 | 259 | ||||||
National Bank of Canada, | 250 | 248 | ||||||
Royal Bank of Scotland (The) PLC, | 175 | 183 | ||||||
Sumitomo Mitsui Banking Corp., | 250 | 252 | ||||||
2.50%, 7/19/18 | 250 | 254 | ||||||
2.25%, 7/11/19 | 285 | 283 | ||||||
3.00%, 1/18/23 | 210 | 207 | ||||||
Svenska Handelsbanken AB, | 900 | 896 | ||||||
2.50%, 1/25/19 | 250 | 254 | ||||||
Toronto-Dominion Bank(The), | 150 | 155 | ||||||
2.38%, 10/19/16 | 565 | 581 | ||||||
1.40%, 4/30/18 | 165 | 162 | ||||||
2.63%, 9/10/18 | 200 | 205 | ||||||
UBS A.G., | 450 | 487 | ||||||
5.88%, 12/20/17 | 372 | 419 | ||||||
5.75%, 4/25/18 | 125 | 141 | ||||||
4.88%, 8/4/20 | 400 | 445 | ||||||
Westpac Banking Corp., | 200 | 206 | ||||||
0.95%, 1/12/16 | 500 | 502 | ||||||
2.00%, 8/14/17 | 300 | 304 | ||||||
2.25%, 7/30/18 | 250 | 252 | ||||||
2.25%, 1/17/19 | 250 | 251 | ||||||
4.88%, 11/19/19 | 250 | 279 | ||||||
18,551 | ||||||||
Chemicals – 0.1% | ||||||||
Agrium, Inc., | 200 | 195 | ||||||
7.13%, 5/23/36 | 100 | 130 | ||||||
6.13%, 1/15/41 | 100 | 119 | ||||||
LYB International Finance B.V., | 185 | 192 | ||||||
4.88%, 3/15/44 | 65 | 66 | ||||||
Potash Corp. of Saskatchewan, Inc., | 635 | 754 |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 40 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 9.0% – continued | ||||||||
Chemicals – 0.1% – continued | ||||||||
5.88%, 12/1/36 | $50 | $60 | ||||||
5.63%, 12/1/40 | 250 | 296 | ||||||
1,812 | ||||||||
Communications Equipment – 0.0% | ||||||||
Telefonaktiebolaget LM Ericsson, | 150 | 157 | ||||||
Diversified Banks – 0.6% | ||||||||
Bank of Montreal, | 150 | 151 | ||||||
2.50%, 1/11/17 | 500 | 515 | ||||||
1.40%, 9/11/17 | 250 | 250 | ||||||
1.45%, 4/9/18 | 250 | 247 | ||||||
2.38%, 1/25/19 | 35 | 35 | ||||||
2.55%, 11/6/22 | 300 | 290 | ||||||
Bank of Nova Scotia (The), | 100 | 102 | ||||||
0.75%, 10/9/15 | 250 | 251 | ||||||
0.95%, 3/15/16 | 150 | 151 | ||||||
1.38%, 7/15/16 | 250 | 252 | ||||||
2.55%, 1/12/17 | 500 | 515 | ||||||
1.25%, 4/11/17 | 150 | 150 | ||||||
1.30%, 7/21/17 | 100 | 99 | ||||||
1.38%, 12/18/17 | 250 | 247 | ||||||
2.05%, 6/5/19 | 200 | 198 | ||||||
2.13%, 9/11/19 | 225 | 224 | ||||||
4.38%, 1/13/21 | 250 | 275 | ||||||
BNP Paribas S.A., | 625 | 636 | ||||||
2.45%, 3/17/19 | 110 | 110 | ||||||
5.00%, 1/15/21 | 1,000 | 1,111 | ||||||
3.25%, 3/3/23 | 250 | 246 | ||||||
HSBC Holdings PLC, | 1,100 | 1,238 | ||||||
4.88%, 1/14/22 | 500 | 556 | ||||||
4.00%, 3/30/22 | 500 | 526 | ||||||
6.50%, 9/15/37 | 300 | 369 | ||||||
6.80%, 6/1/38 | 150 | 192 | ||||||
Royal Bank of Canada, | 200 | 201 | ||||||
0.63%, 12/4/15 | 240 | 240 | ||||||
2.63%, 12/15/15 | 180 | 184 | ||||||
0.85%, 3/8/16 | 150 | 150 | ||||||
2.88%, 4/19/16 | 200 | 207 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 9.0% – continued | ||||||||
Diversified Banks – 0.6% – continued | ||||||||
2.30%, 7/20/16 | $250 | $257 | ||||||
1.13%, 7/22/16 | 275 | 276 | ||||||
1.45%, 9/9/16 | 100 | 101 | ||||||
1.25%, 6/16/17 | 100 | 100 | ||||||
1.20%, 9/19/17 | 400 | 398 | ||||||
2.20%, 7/27/18 | 350 | 354 | ||||||
2.00%, 10/1/18 | 320 | 323 | ||||||
2.20%, 9/23/19 | 275 | 274 | ||||||
Royal Bank of Scotland Group PLC, | 200 | 233 | ||||||
Societe Generale S.A., | 250 | 257 | ||||||
2.63%, 10/1/18 | 250 | 253 | ||||||
12,744 | ||||||||
Exploration & Production – 0.5% | ||||||||
Alberta Energy Co. Ltd., | 75 | 98 | ||||||
Anadarko Finance Co., | 35 | 47 | ||||||
Burlington Resources Finance Co., | 200 | 275 | ||||||
Canadian Natural Resources Ltd., | 225 | 249 | ||||||
3.45%, 11/15/21 | 275 | 283 | ||||||
6.25%, 3/15/38 | 150 | 183 | ||||||
6.75%, 2/1/39 | 50 | 65 | ||||||
CNOOC Finance 2013 Ltd., | 250 | 232 | ||||||
Encana Corp., | 510 | 572 | ||||||
3.90%, 11/15/21 | 330 | 341 | ||||||
6.50%, 8/15/34 | 100 | 123 | ||||||
6.63%, 8/15/37 | 330 | 413 | ||||||
Nexen Energy ULC, | 60 | 70 | ||||||
7.88%, 3/15/32 | 75 | 103 | ||||||
6.40%, 5/15/37 | 600 | 731 | ||||||
Petro-Canada, | 50 | 57 | ||||||
5.95%, 5/15/35 | 100 | 119 | ||||||
6.80%, 5/15/38 | 180 | 237 | ||||||
Petroleos Mexicanos, | 190 | 210 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 41 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 9.0% – continued | ||||||||
Exploration & Production – 0.5% – continued |
| |||||||
3.50%, 7/18/18 | $85 | $88 | ||||||
6.00%, 3/5/20 | 550 | 626 | ||||||
5.50%, 1/21/21 | 1,810 | 1,992 | ||||||
4.88%, 1/24/22 | 2,000 | 2,125 | ||||||
3.50%, 1/30/23 | 75 | 72 | ||||||
6.63%, 6/15/35 | 200 | 232 | ||||||
6.50%, 6/2/41 | 190 | 220 | ||||||
Talisman Energy, Inc., | 560 | 679 | ||||||
7.25%, 10/15/27 | 400 | 500 | ||||||
10,942 | ||||||||
Financial Services – 0.0% |
| |||||||
Invesco Finance PLC, | 100 | 104 | ||||||
Food & Beverage – 0.1% |
| |||||||
Diageo Capital PLC, | 150 | 163 | ||||||
1.50%, 5/11/17 | 235 | 236 | ||||||
5.75%, 10/23/17 | 850 | 955 | ||||||
1.13%, 4/29/18 | 275 | 269 | ||||||
3.88%, 4/29/43 | 75 | 70 | ||||||
1,693 | ||||||||
Government Agencies – 0.2% |
| |||||||
Hydro-Quebec, | 75 | 77 | ||||||
1.38%, 6/19/17 | 250 | 251 | ||||||
9.40%, 2/1/21 | 200 | 271 | ||||||
Japan Bank for International Cooperation, | 300 | 309 | ||||||
1.13%, 7/19/17 | 750 | 748 | ||||||
1.75%, 11/13/18 | 500 | 500 | ||||||
1.75%, 5/29/19 | 1,000 | 993 | ||||||
Oesterreichische Kontrollbank A.G., | 100 | 110 | ||||||
1.63%, 3/12/19 | 300 | 298 | ||||||
2.38%, 10/1/21 | 1,000 | 1,001 | ||||||
Svensk Exportkredit AB, | 500 | 548 | ||||||
1.75%, 5/30/17 | 250 | 254 | ||||||
5,360 | ||||||||
Government Development Banks – 0.7% |
| |||||||
Export Development Canada, | 750 | 750 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 9.0% – continued | ||||||||
Government Development Banks – 0.7% – continued |
| |||||||
1.50%, 10/3/18 | $250 | $249 | ||||||
Export-Import Bank of Korea, | 200 | 211 | ||||||
4.00%, 1/29/21 | 1,000 | 1,051 | ||||||
KFW, | 800 | 800 | ||||||
2.00%, 6/1/16 | 500 | 512 | ||||||
4.88%, 1/17/17 | 200 | 218 | ||||||
1.25%, 2/15/17 | 500 | 504 | ||||||
4.38%, 3/15/18 | 375 | 412 | ||||||
1.88%, 4/1/19 | 1,000 | 1,005 | ||||||
4.00%, 1/27/20 | 1,500 | 1,650 | ||||||
2.75%, 9/8/20 | 500 | 517 | ||||||
2.75%, 10/1/20 | 1,000 | 1,033 | ||||||
2.63%, 1/25/22 | 900 | 915 | ||||||
2.00%, 10/4/22 | 250 | 241 | ||||||
2.13%, 1/17/23 | 1,000 | 970 | ||||||
2.47%, 4/18/36(6) | 500 | 244 | ||||||
Korea Development Bank (The), | 200 | 200 | ||||||
3.50%, 8/22/17 | 850 | 891 | ||||||
3.00%, 3/17/19 | 200 | 204 | ||||||
3.00%, 9/14/22 | 215 | 210 | ||||||
Korea Finance Corp., | 300 | 303 | ||||||
Landwirtschaftliche Rentenbank, | 250 | 257 | ||||||
5.13%, 2/1/17 | 900 | 987 | ||||||
1.88%, 9/17/18 | 200 | 202 | ||||||
1.38%, 10/23/19 | 140 | 136 | ||||||
14,672 | ||||||||
Government Local – 0.0% |
| |||||||
Japan Finance Organization for Municipalities, | 500 | 546 | ||||||
Government Regional – 0.5% |
| |||||||
Province of British Columbia, | 185 | 189 | ||||||
2.65%, 9/22/21 | 150 | 152 | ||||||
2.00%, 10/23/22 | 300 | 287 | ||||||
7.25%, 9/1/36 | 175 | 261 | ||||||
Province of Manitoba Canada, | 200 | 218 |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 42 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 9.0% – continued | ||||||||
Government Regional – 0.5% – continued |
| |||||||
1.30%, 4/3/17 | $165 | $166 | ||||||
1.75%, 5/30/19 | 100 | 99 | ||||||
9.25%, 4/1/20 | 150 | 198 | ||||||
2.10%, 9/6/22 | 100 | 96 | ||||||
Province of Nova Scotia Canada, | 350 | 471 | ||||||
Province of Ontario Canada, | 200 | 211 | ||||||
5.45%, 4/27/16 | 350 | 376 | ||||||
2.30%, 5/10/16 | 1,000 | 1,027 | ||||||
4.95%, 11/28/16 | 650 | 706 | ||||||
1.10%, 10/25/17 | 625 | 621 | ||||||
1.20%, 2/14/18 | 250 | 247 | ||||||
1.65%, 9/27/19 | 250 | 245 | ||||||
4.00%, 10/7/19 | 835 | 909 | ||||||
4.40%, 4/14/20 | 500 | 554 | ||||||
2.45%, 6/29/22 | 500 | 489 | ||||||
Province of Quebec Canada, | 250 | 272 | ||||||
4.63%, 5/14/18 | 350 | 387 | ||||||
2.75%, 8/25/21 | 100 | 101 | ||||||
2.63%, 2/13/23 | 875 | 858 | ||||||
7.50%, 7/15/23 | 300 | 399 | ||||||
7.13%, 2/9/24 | 100 | 130 | ||||||
7.50%, 9/15/29 | 375 | 531 | ||||||
Province of Saskatchewan Canada, | 200 | 276 | ||||||
10,476 | ||||||||
Hardware – 0.0% | ||||||||
Seagate HDD Cayman, | 432 | 435 | ||||||
Integrated Oils – 0.9% | ||||||||
BP Capital Markets PLC, | 100 | 103 | ||||||
1.38%, 5/10/18 | 400 | 393 | ||||||
2.24%, 9/26/18 | 360 | 361 | ||||||
4.75%, 3/10/19 | 1,200 | 1,322 | ||||||
4.74%, 3/11/21 | 450 | 496 | ||||||
2.50%, 11/6/22 | 595 | 561 | ||||||
3.99%, 9/26/23 | 120 | 124 | ||||||
3.81%, 2/10/24 | 100 | 101 | ||||||
Cenovus Energy, Inc., | 55 | 54 | ||||||
6.75%, 11/15/39 | 590 | 750 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 9.0% – continued | ||||||||
Integrated Oils – 0.9% – continued | ||||||||
CNOOC Nexen Finance 2014 ULC, | $200 | $200 | ||||||
4.25%, 4/30/24 | 300 | 304 | ||||||
Ecopetrol S.A., | 1,000 | 967 | ||||||
Husky Energy, Inc., | 600 | 674 | ||||||
7.25%, 12/15/19 | 200 | 244 | ||||||
3.95%, 4/15/22 | 100 | 104 | ||||||
Petrobras Global Finance B.V., | 100 | 100 | ||||||
Petrobras International Finance Co S.A., | 980 | 1,124 | ||||||
5.75%, 1/20/20 | 665 | 700 | ||||||
5.38%, 1/27/21 | 3,190 | 3,224 | ||||||
6.88%, 1/20/40 | 565 | 584 | ||||||
Shell International Finance B.V., | 200 | 200 | ||||||
1.13%, 8/21/17 | 65 | 65 | ||||||
4.30%, 9/22/19 | 1,450 | 1,592 | ||||||
6.38%, 12/15/38 | 660 | 865 | ||||||
4.55%, 8/12/43 | 250 | 264 | ||||||
Statoil ASA, | 100 | 102 | ||||||
3.13%, 8/17/17 | 550 | 577 | ||||||
1.15%, 5/15/18 | 200 | 196 | ||||||
5.25%, 4/15/19 | 850 | 957 | ||||||
3.15%, 1/23/22 | 125 | 127 | ||||||
7.75%, 6/15/23 | 100 | 133 | ||||||
7.15%, 1/15/29 | 250 | 340 | ||||||
4.25%, 11/23/41 | 350 | 350 | ||||||
Suncor Energy, Inc., | 480 | 549 | ||||||
7.15%, 2/1/32 | 200 | 273 | ||||||
5.95%, 12/1/34 | 50 | 60 | ||||||
6.50%, 6/15/38 | 285 | 363 | ||||||
Total Capital Canada Ltd., | 500 | 497 | ||||||
Total Capital International S.A., | 100 | 100 | ||||||
1.50%, 2/17/17 | 500 | 504 | ||||||
1.55%, 6/28/17 | 125 | 126 | ||||||
3.70%, 1/15/24 | 125 | 128 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 43 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 9.0% – continued | ||||||||
Integrated Oils – 0.9% – continued | ||||||||
Total Capital S.A., | $200 | $219 | ||||||
21,077 | ||||||||
Internet Media – 0.0% | ||||||||
Baidu, Inc., | 210 | 216 | ||||||
3.50%, 11/28/22 | 200 | 195 | ||||||
411 | ||||||||
Life Insurance – 0.0% | ||||||||
AXA S.A., | 75 | 101 | ||||||
Machinery Manufacturing – 0.0% | ||||||||
Pentair Finance S.A., | 155 | 156 | ||||||
Tyco Electronics Group S.A., | 50 | 57 | ||||||
3.50%, 2/3/22 | 125 | 128 | ||||||
7.13%, 10/1/37 | 50 | 66 | ||||||
Tyco International Finance S.A., | 11 | 11 | ||||||
418 | ||||||||
Medical Equipment & Devices Manufacturing – 0.1% |
| |||||||
Covidien International Finance S.A., | 800 | 904 | ||||||
2.95%, 6/15/23 | 100 | 96 | ||||||
6.55%, 10/15/37 | 25 | 33 | ||||||
Koninklijke Philips N.V., | 250 | 259 | ||||||
6.88%, 3/11/38 | 225 | 301 | ||||||
5.00%, 3/15/42 | 100 | 107 | ||||||
1,700 | ||||||||
Metals & Mining – 0.5% | ||||||||
Barrick Gold Corp., | 1,175 | 1,130 | ||||||
4.10%, 5/1/23 | 295 | 284 | ||||||
BHP Billiton Finance USA Ltd., | 250 | 264 | ||||||
1.88%, 11/21/16 | 100 | 102 | ||||||
1.63%, 2/24/17 | 600 | 606 | ||||||
5.40%, 3/29/17 | 100 | 110 | ||||||
2.05%, 9/30/18 | 200 | 201 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 9.0% – continued | ||||||||
Metals & Mining – 0.5% – continued | ||||||||
6.50%, 4/1/19 | $200 | $236 | ||||||
3.25%, 11/21/21 | 250 | 255 | ||||||
4.13%, 2/24/42 | 600 | 574 | ||||||
Goldcorp, Inc., | 200 | 200 | ||||||
Rio Tinto Alcan, Inc., | 100 | 120 | ||||||
5.75%, 6/1/35 | 100 | 114 | ||||||
Rio Tinto Finance USA Ltd., | 155 | 159 | ||||||
2.25%, 9/20/16 | 150 | 154 | ||||||
6.50%, 7/15/18 | 675 | 781 | ||||||
9.00%, 5/1/19 | 575 | 736 | ||||||
3.75%, 9/20/21 | 500 | 519 | ||||||
Rio Tinto Finance USA PLC, | 180 | 181 | ||||||
2.00%, 3/22/17 | 150 | 152 | ||||||
1.63%, 8/21/17 | 85 | 86 | ||||||
2.88%, 8/21/22 | 175 | 169 | ||||||
4.75%, 3/22/42 | 150 | 153 | ||||||
4.13%, 8/21/42 | 300 | 278 | ||||||
Teck Resources Ltd., | 35 | 37 | ||||||
3.00%, 3/1/19 | 85 | 84 | ||||||
6.00%, 8/15/40 | 195 | 196 | ||||||
6.25%, 7/15/41 | 350 | 356 | ||||||
5.20%, 3/1/42 | 125 | 114 | ||||||
5.40%, 2/1/43 | 130 | 121 | ||||||
Vale Overseas Ltd., | 1,830 | 1,920 | ||||||
4.38%, 1/11/22 | 155 | 156 | ||||||
10,548 | ||||||||
Oil & Gas Services & Equipment – 0.1% |
| |||||||
Noble Holding International Ltd., | 70 | 72 | ||||||
Transocean, Inc., | 995 | 1,058 | ||||||
3.80%, 10/15/22 | 160 | 147 | ||||||
6.80%, 3/15/38 | 200 | 195 | ||||||
Weatherford International Ltd., | 50 | 53 | ||||||
6.00%, 3/15/18 | 725 | 816 | ||||||
6.50%, 8/1/36 | 125 | 144 | ||||||
2,485 |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 44 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 9.0% – continued | ||||||||
Pharmaceuticals – 0.2% | ||||||||
Actavis Funding SCS, | $125 | $121 | ||||||
AstraZeneca PLC, | 325 | 366 | ||||||
1.95%, 9/18/19 | 225 | 222 | ||||||
6.45%, 9/15/37 | 450 | 584 | ||||||
4.00%, 9/18/42 | 250 | 235 | ||||||
GlaxoSmithKline Capital PLC, | 250 | 252 | ||||||
Novartis Securities Investment Ltd., | 850 | 955 | ||||||
Sanofi, | 250 | 257 | ||||||
1.25%, 4/10/18 | 40 | 39 | ||||||
4.00%, 3/29/21 | 500 | 537 | ||||||
Teva Pharmaceutical Finance Co. B.V., | 200 | 205 | ||||||
3.65%, 11/10/21 | 35 | 36 | ||||||
2.95%, 12/18/22 | 350 | 333 | ||||||
Teva Pharmaceutical Finance IV B.V., | 465 | 473 | ||||||
4,615 | ||||||||
Pipeline – 0.1% | ||||||||
Enbridge, Inc., | 150 | 155 | ||||||
4.50%, 6/10/44 | 40 | 39 | ||||||
TransCanada PipeLines Ltd., | 215 | 249 | ||||||
9.88%, 1/1/21 | 175 | 243 | ||||||
4.63%, 3/1/34 | 100 | 103 | ||||||
5.85%, 3/15/36 | 275 | 322 | ||||||
6.20%, 10/15/37 | 30 | 36 | ||||||
7.63%, 1/15/39 | 715 | 1,006 | ||||||
6.35%, 5/15/67 | 100 | 103 | ||||||
2,256 | ||||||||
Property & Casualty Insurance – 0.1% | ||||||||
Allied World Assurance Co. Holdings Ltd., | 100 | 111 | ||||||
Aon PLC, | 450 | 424 | ||||||
Aspen Insurance Holdings Ltd., | 270 | 279 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 9.0% – continued | ||||||||
Property & Casualty Insurance – 0.1% – continued |
| |||||||
Endurance Specialty Holdings Ltd., | $100 | $121 | ||||||
Trinity Acquisition PLC, | 75 | 83 | ||||||
Willis Group Holdings PLC, | 450 | 504 | ||||||
XLIT Ltd., | 200 | 231 | ||||||
6.25%, 5/15/27 | 50 | 59 | ||||||
5.25%, 12/15/43 | 250 | 275 | ||||||
2,087 | ||||||||
Publishing & Broadcasting – 0.0% | ||||||||
Grupo Televisa S.A.B., | 570 | 686 | ||||||
Railroad – 0.1% | ||||||||
Canadian National Railway Co., | 500 | 572 | ||||||
2.85%, 12/15/21 | 85 | 86 | ||||||
6.90%, 7/15/28 | 25 | 33 | ||||||
6.20%, 6/1/36 | 25 | 32 | ||||||
6.38%, 11/15/37 | 50 | 66 | ||||||
3.50%, 11/15/42 | 150 | 136 | ||||||
Canadian Pacific Railway Co., | 50 | 57 | ||||||
5.95%, 5/15/37 | 50 | 63 | ||||||
Kansas City Southern de Mexico S.A.de C.V., | 100 | 96 | ||||||
1,141 | ||||||||
Software & Services – 0.0% | ||||||||
Thomson Reuters Corp., | 200 | 208 | ||||||
5.50%, 8/15/35 | 150 | 163 | ||||||
5.65%, 11/23/43 | 35 | 39 | ||||||
410 | ||||||||
Sovereigns – 1.5% | ||||||||
Brazilian Government International Bond, | 1,250 | 1,366 | ||||||
8.00%, 1/15/18 | 156 | 171 | ||||||
8.88%, 10/14/19 | 1,075 | 1,365 | ||||||
4.88%, 1/22/21 | 1,000 | 1,063 | ||||||
8.88%, 4/15/24 | 600 | 817 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 45 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 9.0% – continued | ||||||||
Sovereigns – 1.5% – continued | ||||||||
10.13%, 5/15/27 | $500 | $775 | ||||||
7.13%, 1/20/37 | 250 | 307 | ||||||
11.00%, 8/17/40 | 835 | 908 | ||||||
5.63%, 1/7/41 | 635 | 656 | ||||||
Canada Government International Bond, | 545 | 544 | ||||||
1.63%, 2/27/19 | 165 | 164 | ||||||
Chile Government International Bond, | 400 | 410 | ||||||
3.63%, 10/30/42 | 200 | 175 | ||||||
Colombia Government International Bond, | 500 | 565 | ||||||
7.38%, 3/18/19 | 250 | 298 | ||||||
4.38%, 7/12/21 | 1,000 | 1,058 | ||||||
7.38%, 9/18/37 | 350 | 467 | ||||||
6.13%, 1/18/41 | 250 | 292 | ||||||
5.63%, 2/26/44 | 200 | 220 | ||||||
Israel Government International Bond, | 225 | 246 | ||||||
5.13%, 3/26/19 | 250 | 282 | ||||||
4.00%, 6/30/22 | 250 | 267 | ||||||
4.50%, 1/30/43 | 200 | 198 | ||||||
Italy Government International Bond, | 1,000 | 1,079 | ||||||
5.38%, 6/12/17 | 1,675 | 1,841 | ||||||
5.38%, 6/15/33 | 175 | 210 | ||||||
Mexico Government International Bond, | 770 | 840 | ||||||
5.95%, 3/19/19 | 500 | 571 | ||||||
5.13%, 1/15/20 | 1,360 | 1,510 | ||||||
4.00%, 10/2/23 | 150 | 155 | ||||||
7.50%, 4/8/33 | 100 | 137 | ||||||
6.75%, 9/27/34 | 750 | 952 | ||||||
6.05%, 1/11/40 | 820 | 968 | ||||||
4.75%, 3/8/44 | 1,000 | 992 | ||||||
Panama Government International Bond, | 75 | 75 | ||||||
6.70%, 1/26/36 | 550 | 675 | ||||||
Peruvian Government International Bond, | 350 | 388 | ||||||
7.35%, 7/21/25 | 250 | 326 | ||||||
6.55%, 3/14/37 | 500 | 630 | ||||||
5.63%, 11/18/50 | 350 | 396 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 9.0% – continued | ||||||||
Sovereigns – 1.5% – continued | ||||||||
Philippine Government International Bond, | $500 | $785 | ||||||
5.50%, 3/30/26 | 200 | 230 | ||||||
6.38%, 10/23/34 | 500 | 630 | ||||||
5.00%, 1/13/37 | 500 | 554 | ||||||
Poland Government International Bond, | 475 | 496 | ||||||
6.38%, 7/15/19 | 400 | 470 | ||||||
5.13%, 4/21/21 | 150 | 167 | ||||||
3.00%, 3/17/23 | 1,000 | 967 | ||||||
4.00%, 1/22/24 | 150 | 154 | ||||||
Republic of Korea, | 125 | 136 | ||||||
7.13%, 4/16/19 | 150 | 181 | ||||||
3.88%, 9/11/23 | 200 | 214 | ||||||
South Africa Government International Bond, | 275 | 312 | ||||||
Turkey Government International Bond, | 250 | 225 | ||||||
5.75%, 3/22/24 | 300 | 319 | ||||||
6.88%, 3/17/36 | 500 | 573 | ||||||
6.00%, 1/14/41 | 1,500 | 1,552 | ||||||
6.63%, 2/17/45 | 270 | 302 | ||||||
Uruguay Government International Bond, | 250 | 332 | ||||||
4.13%, 11/20/45 | 400 | 338 | ||||||
33,296 | ||||||||
Supermarkets & Pharmacies – 0.0% | ||||||||
Delhaize Group S.A., | 35 | 37 | ||||||
5.70%, 10/1/40 | 400 | 424 | ||||||
461 | ||||||||
Supranationals – 1.4% | ||||||||
African Development Bank, | 500 | 514 | ||||||
1.25%, 9/2/16 | 40 | 40 | ||||||
1.13%, 3/15/17 | 500 | 502 | ||||||
0.88%, 3/15/18 | 250 | 245 | ||||||
Asian Development Bank, | 500 | 515 | ||||||
0.50%, 6/20/16 | 200 | 200 | ||||||
5.50%, 6/27/16 | 600 | 650 |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 46 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 9.0% – continued | ||||||||
Supranationals – 1.4% – continued |
| |||||||
1.13%, 3/15/17 | $355 | $356 | ||||||
5.59%, 7/16/18 | 50 | 57 | ||||||
1.75%, 9/11/18 | 150 | 151 | ||||||
1.75%, 3/21/19 | 1,500 | 1,501 | ||||||
1.88%, 4/12/19 | 150 | 151 | ||||||
1.38%, 3/23/20 | 250 | 242 | ||||||
Corp. Andina de Fomento, | 613 | 655 | ||||||
Council Of Europe Development Bank, | 350 | 360 | ||||||
1.25%, 9/22/16 | 150 | 152 | ||||||
1.50%, 6/19/17 | 200 | 202 | ||||||
European Bank for Reconstruction & Development, | 300 | 309 | ||||||
1.38%, 10/20/16 | 150 | 152 | ||||||
1.00%, 2/16/17 | 500 | 501 | ||||||
0.75%, 9/1/17 | 300 | 297 | ||||||
1.00%, 6/15/18 | 150 | 147 | ||||||
1.75%, 6/14/19 | 200 | 199 | ||||||
1.50%, 3/16/20 | 250 | 242 | ||||||
European Investment Bank, | 500 | 506 | ||||||
2.25%, 3/15/16 | 400 | 410 | ||||||
1.13%, 12/15/16 | 1,000 | 1,008 | ||||||
4.88%, 1/17/17 | 800 | 872 | ||||||
1.75%, 3/15/17 | 1,000 | 1,019 | ||||||
0.88%, 4/18/17 | 400 | 399 | ||||||
5.13%, 5/30/17 | 350 | 387 | ||||||
1.63%, 6/15/17 | 250 | 254 | ||||||
1.00%, 8/17/17 | 250 | 249 | ||||||
1.00%, 12/15/17 | 1,000 | 991 | ||||||
1.00%, 3/15/18 | 2,000 | 1,972 | ||||||
1.00%, 6/15/18 | 1,650 | 1,619 | ||||||
1.63%, 12/18/18 | 400 | 399 | ||||||
1.88%, 3/15/19 | 250 | 251 | ||||||
2.50%, 4/15/21 | 1,500 | 1,522 | ||||||
2.13%, 10/15/21 | 200 | 197 | ||||||
3.25%, 1/29/24 | 250 | 262 | ||||||
4.88%, 2/15/36 | 200 | 244 | ||||||
Inter-American Development Bank, | 250 | 251 | ||||||
1.13%, 3/15/17 | 1,000 | 1,009 | ||||||
0.88%, 3/15/18 | 500 | 491 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 9.0% – continued | ||||||||
Supranationals – 1.4% – continued |
| |||||||
1.75%, 8/24/18 | $250 | $252 | ||||||
4.25%, 9/10/18 | 400 | 441 | ||||||
1.13%, 9/12/19 | 200 | 194 | ||||||
3.88%, 9/17/19 | 600 | 659 | ||||||
3.88%, 2/14/20 | 500 | 548 | ||||||
3.00%, 2/21/24 | 150 | 155 | ||||||
3.88%, 10/28/41 | 200 | 205 | ||||||
International Bank for Reconstruction & Development, | 1,000 | 1,023 | ||||||
5.00%, 4/1/16 | 450 | 479 | ||||||
0.50%, 4/15/16 | 450 | 449 | ||||||
0.50%, 5/16/16 | 210 | 209 | ||||||
1.00%, 9/15/16 | 500 | 503 | ||||||
0.88%, 4/17/17 | 1,000 | 1,001 | ||||||
9.25%, 7/15/17 | 100 | 122 | ||||||
2.25%, 6/24/21 | 500 | 497 | ||||||
4.75%, 2/15/35 | 25 | 30 | ||||||
International Finance Corp., | 375 | 374 | ||||||
1.13%, 11/23/16 | 500 | 503 | ||||||
1.00%, 4/24/17 | 890 | 890 | ||||||
0.88%, 6/15/18 | 500 | 489 | ||||||
1.75%, 9/16/19 | 250 | 249 | ||||||
Nordic Investment Bank, | 250 | 250 | ||||||
5.00%, 2/1/17 | 100 | 109 | ||||||
1.88%, 6/14/19 | 200 | 200 | ||||||
32,483 | ||||||||
Travel & Lodging – 0.0% | ||||||||
Carnival Corp., | 55 | 55 | ||||||
Winding Up Agencies – 0.0% | ||||||||
FMS Wertmanagement AoeR, | 300 | 299 | ||||||
Wireless Telecommunications Services – 0.3% |
| |||||||
America Movil S.A.B. de C.V., | 700 | 715 | ||||||
3.13%, 7/16/22 | 295 | 287 | ||||||
6.13%, 11/15/37 | 315 | 368 | ||||||
6.13%, 3/30/40 | 185 | 215 | ||||||
Orange S.A., | 600 | 675 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 47 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 9.0% – continued | ||||||||
Wireless Telecommunications Services – 0.3% – continued |
| |||||||
9.00%, 3/1/31 | $610 | $899 | ||||||
Rogers Communications, Inc., | 700 | 820 | ||||||
3.00%, 3/15/23 | 80 | 76 | ||||||
5.45%, 10/1/43 | 100 | 109 | ||||||
5.00%, 3/15/44 | 75 | 77 | ||||||
Vodafone Group PLC, | 325 | 356 | ||||||
1.63%, 3/20/17 | 250 | 250 | ||||||
1.25%, 9/26/17 | 300 | 296 | ||||||
2.95%, 2/19/23 | 500 | 471 | ||||||
7.88%, 2/15/30 | 200 | 268 | ||||||
6.15%, 2/27/37 | 635 | 729 | ||||||
6,611 | ||||||||
Wireline Telecommunications Services – 0.2% |
| |||||||
British Telecommunications PLC, | 575 | 649 | ||||||
9.63%, 12/15/30 | 100 | 157 | ||||||
Deutsche Telekom International Finance B.V., | 525 | 561 | ||||||
8.75%, 6/15/30 | 400 | 582 | ||||||
Nippon Telegraph & Telephone Corp., | 150 | 150 | ||||||
Telefonica Emisiones S.A.U., | 910 | 1,000 | ||||||
5.46%, 2/16/21 | 370 | 412 | ||||||
4.57%, 4/27/23 | 150 | 157 | ||||||
7.05%, 6/20/36 | 110 | 139 | ||||||
Telefonica Europe B.V., | 85 | 115 | ||||||
Telefonos de Mexico S.A.B. de C.V., | 305 | 345 | ||||||
4,267 | ||||||||
Total Foreign Issuer Bonds | ||||||||
(Cost $196,168) | 203,000 | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) | ||||||||
Fannie Mae – 15.0% | ||||||||
1.63%, 10/26/15 | 1,000 | 1,015 | ||||||
0.38%, 12/21/15 | 2,000 | 2,003 | ||||||
2.25%, 3/15/16 | 2,500 | 2,565 | ||||||
0.50%, 3/30/16 | 2,000 | 2,002 | ||||||
2.38%, 4/11/16 | 3,000 | 3,088 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Fannie Mae – 15.0% – continued |
| |||||||
0.52%, 5/20/16 | $2,000 | $1,998 | ||||||
1.25%, 9/28/16 | 3,700 | 3,744 | ||||||
1.38%, 11/15/16 | 2,000 | 2,030 | ||||||
4.88%, 12/15/16 | 4,200 | 4,581 | ||||||
1.25%, 1/30/17 | 2,000 | 2,018 | ||||||
5.00%, 5/11/17 | 1,000 | 1,104 | ||||||
5.38%, 6/12/17 | 1,000 | 1,116 | ||||||
1.88%, 9/18/18 | 1,000 | 1,010 | ||||||
2.63%, 9/6/24 | 2,000 | 1,967 | ||||||
7.13%, 1/15/30 | 1,500 | 2,192 | ||||||
6.63%, 11/15/30 | 200 | 284 | ||||||
5.63%, 7/15/37 | 1,000 | 1,334 | ||||||
Fannie Mae-Aces, | 195 | 207 | ||||||
Fannie Mae-Aces, | 750 | 762 | ||||||
Fannie Mae-Aces, | 168 | 170 | ||||||
Fannie Mae-Aces, | 200 | 205 | ||||||
Fannie Mae-Aces, | 150 | 144 | ||||||
Fannie Mae-Aces, | 500 | 501 | ||||||
Fannie Mae-Aces, | 545 | 560 | ||||||
Fannie Mae-Aces, | 56 | 56 | ||||||
Fannie Mae-Aces, | 500 | 501 | ||||||
Pool #255376, | 52 | 55 | ||||||
Pool #255695, | 22 | 24 | ||||||
Pool #256792, | 79 | 87 | ||||||
Pool #256925, | 74 | 84 |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 48 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Fannie Mae – 15.0% – continued | ||||||||
Pool #256959, | $333 | $376 | ||||||
Pool #256985, | 95 | 104 | ||||||
Pool #257042, | 598 | 677 | ||||||
Pool #257106, | 10 | 11 | ||||||
Pool #257237, | 94 | 101 | ||||||
Pool #257243, | 335 | 385 | ||||||
Pool #357630, | 46 | 49 | ||||||
Pool #707791, | 333 | 369 | ||||||
Pool #709239, | 275 | 290 | ||||||
Pool #725185, | 63 | 67 | ||||||
Pool #725425, | 118 | 132 | ||||||
Pool #730811, | 227 | 246 | ||||||
Pool #735222, | 71 | 79 | ||||||
Pool #735358, | 304 | 341 | ||||||
Pool #735502, | 41 | 46 | ||||||
Pool #737853, | 554 | 613 | ||||||
Pool #745336, | 1,524 | 1,685 | ||||||
Pool #745418, | 114 | 127 | ||||||
Pool #745754, | 744 | 824 | ||||||
Pool #745826, | 409 | 463 | ||||||
Pool #746272, | 197 | 209 | ||||||
Pool #747383, | 229 | 257 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Fannie Mae – 15.0% – continued |
| |||||||
Pool #753678, | $151 | $163 | ||||||
Pool #755632, | 250 | 276 | ||||||
Pool #766083, | 3 | 3 | ||||||
Pool #772730, | 210 | 231 | ||||||
Pool #773287, | 165 | 177 | ||||||
Pool #790406, | 153 | 175 | ||||||
Pool #793666, | 165 | 186 | ||||||
Pool #796250, | 70 | 78 | ||||||
Pool #800471, | 661 | 740 | ||||||
Pool #807701, | 39 | 41 | ||||||
Pool #811944, | 51 | 54 | ||||||
Pool #817795, | 66 | 74 | ||||||
Pool #821912, | 297 | 316 | ||||||
Pool #822455, | 76 | 81 | ||||||
Pool #826057, | 183 | 204 | ||||||
Pool #826368, | 119 | 127 | ||||||
Pool #826585, | 364 | 402 | ||||||
Pool #828523, | 108 | 119 | ||||||
Pool #831676, | 44 | 51 | ||||||
Pool #832628, | 69 | 74 | ||||||
Pool #833067, | 465 | 520 | ||||||
Pool #833163, | 270 | 299 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 49 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Fannie Mae – 15.0% – continued | ||||||||
Pool #840577, | $44 | $47 | ||||||
Pool #844909, | 13 | 14 | ||||||
Pool #845425, | 385 | 437 | ||||||
Pool #846600, | 314 | 337 | ||||||
Pool #847921, | 196 | 213 | ||||||
Pool #863759, | 32 | 34 | ||||||
Pool #864435, | 89 | 95 | ||||||
Pool #868435, | 341 | 391 | ||||||
Pool #869710, | 186 | 211 | ||||||
Pool #871135, | 103 | 118 | ||||||
Pool #880505, | 24 | 25 | ||||||
Pool #881818, | 285 | 322 | ||||||
Pool #882055, | 91 | 95 | ||||||
Pool #885769, | 43 | 49 | ||||||
Pool #885866, | 147 | 168 | ||||||
Pool #887111, | 51 | 54 | ||||||
Pool #888100, | 436 | 489 | ||||||
Pool #888152, | 109 | 116 | ||||||
Pool #888205, | 111 | 127 | ||||||
Pool #888318, | 68 | 73 | ||||||
Pool #888447, | 59 | 63 | ||||||
Pool #889224, | 550 | 615 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Fannie Mae – 15.0% – continued | ||||||||
Pool #889390, | $84 | $92 | ||||||
Pool #889401, | 274 | 310 | ||||||
Pool #889415, | 1,153 | 1,310 | ||||||
Pool #889579, | 616 | 697 | ||||||
Pool #889630, | 72 | 82 | ||||||
Pool #889886, | 95 | 105 | ||||||
Pool #889970, | 417 | 461 | ||||||
Pool #890234, | 287 | 329 | ||||||
Pool #890329, | 4,820 | 5,167 | ||||||
Pool #890339, | 431 | 456 | ||||||
Pool #892536, | 59 | 67 | ||||||
Pool #892968, | 7 | 8 | ||||||
Pool #893363, | 125 | 139 | ||||||
Pool #893366, | 187 | 207 | ||||||
Pool #894453, | 147 | 160 | ||||||
Pool #898417, | 69 | 78 | ||||||
Pool #899079, | 135 | 149 | ||||||
Pool #902188, | 14 | 15 | ||||||
Pool #902414, | 261 | 291 | ||||||
Pool #905090, | 94 | 100 | ||||||
Pool #905759, | 47 | 51 | ||||||
Pool #906090, | 303 | 339 |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 50 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Fannie Mae – 15.0% – continued | ||||||||
Pool #910147, | $136 | $147 | ||||||
Pool #912414, | 40 | 42 | ||||||
Pool #915499, | 232 | 256 | ||||||
Pool #915870, | 28 | 33 | ||||||
Pool #918515, | 239 | 263 | ||||||
Pool #920457, | 12 | 13 | ||||||
Pool #920988, | 12 | 12 | ||||||
Pool #923123, | 40 | 45 | ||||||
Pool #923166, | 61 | 74 | ||||||
Pool #928261, | 136 | 148 | ||||||
Pool #928584, | 515 | 593 | ||||||
Pool #928909, | 4 | 4 | ||||||
Pool #928915, | 28 | 32 | ||||||
Pool #930606, | 1,214 | 1,282 | ||||||
Pool #931195, | 337 | 360 | ||||||
Pool #931665, | 1,076 | 1,148 | ||||||
Pool #932023, | 225 | 248 | ||||||
Pool #932741, | 786 | 858 | ||||||
Pool #934466, | 203 | 222 | ||||||
Pool #940623, | 101 | 112 | ||||||
Pool #943388, | 376 | 424 | ||||||
Pool #943617, | 318 | 365 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Fannie Mae – 15.0% – continued | ||||||||
Pool #945876, | $39 | $43 | ||||||
Pool #946527, | 64 | 70 | ||||||
Pool #947216, | 127 | 145 | ||||||
Pool #949391, | 20 | 21 | ||||||
Pool #953018, | 225 | 255 | ||||||
Pool #953910, | 172 | 195 | ||||||
Pool #955771, | 209 | 236 | ||||||
Pool #959604, | 26 | 29 | ||||||
Pool #959880, | 98 | 109 | ||||||
Pool #962687, | 350 | 386 | ||||||
Pool #963735, | 154 | 166 | ||||||
Pool #965389, | 154 | 162 | ||||||
Pool #966660, | 4 | 5 | ||||||
Pool #968037, | 248 | 280 | ||||||
Pool #969632, | 73 | 83 | ||||||
Pool #970013, | 224 | 241 | ||||||
Pool #971734, | 42 | 45 | ||||||
Pool #972452, | 449 | 500 | ||||||
Pool #975365, | 92 | 100 | ||||||
Pool #976963, | 3,691 | 4,114 | ||||||
Pool #981704, | 271 | 286 | ||||||
Pool #981823, | 55 | 56 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 51 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Fannie Mae – 15.0% – continued | ||||||||
Pool #981854, | $310 | $345 | ||||||
Pool #984075, | 97 | 104 | ||||||
Pool #986760, | 977 | 1,089 | ||||||
Pool #987114, | 29 | 31 | ||||||
Pool #987115, | 64 | 68 | ||||||
Pool #992472, | 110 | 125 | ||||||
Pool #992491, | 72 | 77 | ||||||
Pool #993055, | 85 | 95 | ||||||
Pool #995018, | 204 | 227 | ||||||
Pool #995203, | 1,165 | 1,289 | ||||||
Pool #995266, | 927 | 1,008 | ||||||
Pool #995737, | 2,138 | 2,365 | ||||||
Pool #995879, | 288 | 326 | ||||||
Pool #AA0451, | 16 | 17 | ||||||
Pool #AA0649, | 696 | 773 | ||||||
Pool #AA2939, | 1,072 | 1,171 | ||||||
Pool #AA4482, | 1,051 | 1,111 | ||||||
Pool #AA4562, | 977 | 1,067 | ||||||
Pool #AA8978, | 243 | 265 | ||||||
Pool #AA9357, | 1,226 | 1,325 | ||||||
Pool #AB1048, | 1,456 | 1,582 | ||||||
Pool #AB2067, | 1,623 | 1,665 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Fannie Mae – 15.0% – continued | ||||||||
Pool #AB2092, | $710 | $751 | ||||||
Pool #AB2272, | 1,227 | 1,341 | ||||||
Pool #AB2693, | 692 | 750 | ||||||
Pool #AB2768, | 1,037 | 1,129 | ||||||
Pool #AB3246, | 649 | 720 | ||||||
Pool #AB4057, | 3,158 | 3,332 | ||||||
Pool #AB4293, | 1,995 | 2,043 | ||||||
Pool #AB5049, | 3,752 | 3,960 | ||||||
Pool #AB6016, | 1,499 | 1,535 | ||||||
Pool #AB6293, | 2,813 | 2,964 | ||||||
Pool #AB7076, | 4,021 | 3,974 | ||||||
Pool #AB7733, | 3,356 | 3,316 | ||||||
Pool #AB8823, | 5,991 | 5,918 | ||||||
Pool #AB9363, | 4,722 | 4,837 | ||||||
Pool #AB9990, | 372 | 378 | ||||||
Pool #AC2947, | 1,428 | 1,603 | ||||||
Pool #AC2969, | 3,751 | 4,177 | ||||||
Pool #AC3263, | 394 | 432 | ||||||
Pool #AC3312, | 2,008 | 2,170 | ||||||
Pool #AC4861, | 764 | 822 | ||||||
Pool #AC5040, | 479 | 511 | ||||||
Pool #AC6118, | 591 | 639 |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 52 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Fannie Mae – 15.0% – continued | ||||||||
Pool #AC6742, | $2,018 | $2,200 | ||||||
Pool #AC8518, | 1,208 | 1,335 | ||||||
Pool #AC9581, | 2,242 | 2,513 | ||||||
Pool #AD0119, | 1,013 | 1,145 | ||||||
Pool #AD0585, | 934 | 1,023 | ||||||
Pool #AD0639, | 265 | 300 | ||||||
Pool #AD0969, | 954 | 1,067 | ||||||
Pool #AD5241, | 822 | 889 | ||||||
Pool #AD5525, | 997 | 1,108 | ||||||
Pool #AD5556, | 370 | 394 | ||||||
Pool #AD7859, | 657 | 727 | ||||||
Pool #AE0289, | 289 | 310 | ||||||
Pool #AE0949, | 2,171 | 2,291 | ||||||
Pool #AE0971, | 287 | 307 | ||||||
Pool #AE0981, | 1,606 | 1,644 | ||||||
Pool #AE1807, | 3,026 | 3,193 | ||||||
Pool #AE3873, | 468 | 506 | ||||||
Pool #AE5436, | 567 | 614 | ||||||
Pool #AE5767, | 291 | 307 | ||||||
Pool #AH0525, | 2,291 | 2,418 | ||||||
Pool #AH1295, | 797 | 841 | ||||||
Pool #AH2488, | 238 | 250 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Fannie Mae – 15.0% – continued | ||||||||
Pool #AH3226, | $335 | $371 | ||||||
Pool #AH4158, | 423 | 446 | ||||||
Pool #AH5573, | 1,674 | 1,771 | ||||||
Pool #AH5614, | 860 | 908 | ||||||
Pool #AH8854, | 568 | 615 | ||||||
Pool #AI1247, | 448 | 478 | ||||||
Pool #AI3470, | 949 | 1,027 | ||||||
Pool #AI4361, | 142 | 149 | ||||||
Pool #AI4380, | 113 | 118 | ||||||
Pool #AI5539, | 180 | 191 | ||||||
Pool #AI5603, | 511 | 553 | ||||||
Pool #AI7743, | 753 | 794 | ||||||
Pool #AI9137, | 2,641 | 2,672 | ||||||
Pool #AI9555, | 1,323 | 1,397 | ||||||
Pool #AI9828, | 242 | 252 | ||||||
Pool #AJ2001, | 171 | 178 | ||||||
Pool #AJ4093, | 238 | 251 | ||||||
Pool #AJ4408, | 326 | 352 | ||||||
Pool #AJ6086, | 581 | 601 | ||||||
Pool #AJ9152, | 2,595 | 2,734 | ||||||
Pool #AJ9218, | 1,505 | 1,588 | ||||||
Pool #AJ9326, | 2,053 | 2,108 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 53 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Fannie Mae – 15.0% – continued | ||||||||
Pool #AJ9355, | $1,353 | $1,399 | ||||||
Pool #AK4524, | 4,192 | 4,538 | ||||||
Pool #AK4813, | 939 | 962 | ||||||
Pool #AK4945, | 1,107 | 1,133 | ||||||
Pool #AK7766, | 1,548 | 1,566 | ||||||
Pool #AK9444, | 621 | 661 | ||||||
Pool #AL0442, | 260 | 291 | ||||||
Pool #AL0766, | 2,381 | 2,519 | ||||||
Pool #AL1449, | 2,378 | 2,510 | ||||||
Pool #AL1849, | 1,048 | 1,200 | ||||||
Pool #AL1939, | 2,449 | 2,511 | ||||||
Pool #AL2243, | 2,836 | 2,992 | ||||||
Pool #AL2303, | 1,051 | 1,118 | ||||||
Pool #AL2326, | 5,323 | 5,763 | ||||||
Pool #AL2397, | 333 | 343 | ||||||
Pool #AL2893, | 5,261 | 5,403 | ||||||
Pool #AL3396, | 1,325 | 1,340 | ||||||
Pool #AL3950, | 172 | 174 | ||||||
Pool #AL4462, | 2,156 | 2,181 | ||||||
Pool #AL4908, | 2,485 | 2,629 | ||||||
Pool #AL5254, | 1,834 | 1,896 | ||||||
Pool #AL5377, | 5,878 | 6,229 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Fannie Mae – 15.0% – continued | ||||||||
Pool #AL5785, | $3,187 | $3,364 | ||||||
Pool #AO0752, | 1,171 | 1,157 | ||||||
Pool #AO0800, | 1,206 | 1,247 | ||||||
Pool #AO2973, | 2,607 | 2,681 | ||||||
Pool #AO4136, | 1,907 | 1,953 | ||||||
Pool #AO7970, | 776 | 785 | ||||||
Pool #AO8031, | 4,598 | 4,709 | ||||||
Pool #AO8629, | 801 | 820 | ||||||
Pool #AP6273, | 1,261 | 1,246 | ||||||
Pool #AQ6784, | 1,723 | 1,765 | ||||||
Pool #AR1706, | 6,374 | 6,448 | ||||||
Pool #AR3054, | 1,676 | 1,732 | ||||||
Pool #AR3792, | 1,207 | 1,193 | ||||||
Pool #AR8151, | 1,939 | 1,916 | ||||||
Pool #AR9582, | 681 | 675 | ||||||
Pool #AS0018, | 4,365 | 4,309 | ||||||
Pool #AS0275, | 468 | 476 | ||||||
Pool #AT0666, | 856 | 878 | ||||||
Pool #AT2720, | 2,035 | 2,016 | ||||||
Pool #AT3164, | 3,262 | 3,224 | ||||||
Pool #AT3180, | 3,826 | 3,781 | ||||||
Pool #AT5026, | 3,646 | 3,601 |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 54 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Fannie Mae – 15.0% – continued | ||||||||
Pool #AU1657, | $985 | $997 | ||||||
Pool #AU1808, | 3,165 | 3,124 | ||||||
Pool #AU3164, | 374 | 380 | ||||||
Pool #AU4336, | 815 | 820 | ||||||
Pool #AU5918, | 2,886 | 2,849 | ||||||
Pool #AU5919, | 2,778 | 2,843 | ||||||
Pool #AV0691, | 4,830 | 5,111 | ||||||
Pool #AV2339, | 962 | 1,018 | ||||||
Pool #AW8595, | 795 | 822 | ||||||
Pool #MA0361, | 446 | 474 | ||||||
Pool #MA0667, | 985 | 1,053 | ||||||
Pool #MA0706, | 1,360 | 1,480 | ||||||
Pool #MA0711, | 550 | 574 | ||||||
Pool #MA0804, | 666 | 712 | ||||||
Pool #MA0976, | 1,234 | 1,288 | ||||||
Pool #MA1107, | 1,505 | 1,571 | ||||||
Pool #MA1138, | 803 | 838 | ||||||
Pool #MA1141, | 391 | 398 | ||||||
Pool #MA1200, | 2,085 | 2,124 | ||||||
Pool #MA1432, | 1,994 | 2,025 | ||||||
Pool #MA1511, | 557 | 547 | ||||||
Pool TBA, 2.00%, | 3,000 | 2,936 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Fannie Mae – 15.0% – continued | ||||||||
2.50%, 10/14/29 (8) | $799 | $803 | ||||||
3.00%, 10/14/29 (8) | 5,596 | 5,764 | ||||||
2.50%, 10/14/44 (8) | 1,900 | 1,799 | ||||||
3.50%, 10/14/44 (8) | 5,827 | 5,956 | ||||||
4.00%, 10/14/44 (8) | 3,500 | 3,688 | ||||||
337,854 | ||||||||
Federal Home Loan Bank – 0.5% | ||||||||
0.50%, 11/20/15 | 5,000 | 5,013 | ||||||
5.13%, 10/19/16 | 5,450 | 5,952 | ||||||
5.50%, 7/15/36 | 500 | 648 | ||||||
11,613 | ||||||||
Freddie Mac – 2.3% | ||||||||
5.25%, 4/18/16 | 500 | 537 | ||||||
2.50%, 5/27/16 | 4,000 | 4,133 | ||||||
2.00%, 8/25/16 | 5,675 | 5,825 | ||||||
5.00%, 2/16/17 | 500 | 548 | ||||||
1.00%, 3/8/17 | 2,500 | 2,507 | ||||||
1.00%, 9/27/17 | 3,000 | 2,983 | ||||||
5.13%, 11/17/17 | 500 | 559 | ||||||
0.75%, 1/12/18 | 2,000 | 1,961 | ||||||
0.88%, 3/7/18 | 1,000 | 983 | ||||||
3.75%, 3/27/19 | 1,000 | 1,083 | ||||||
1.25%, 10/2/19 | 1,000 | 971 | ||||||
2.38%, 1/13/22 | 3,000 | 2,983 | ||||||
6.75%, 3/15/31 | 1,200 | 1,729 | ||||||
FHLMC Multifamily Structured Pass Through Certificates, Series K003, Class A5, | 500 | 562 | ||||||
FHLMC Multifamily Structured Pass Through Certificates, Series K005, Class A1, | 425 | 446 | ||||||
FHLMC Multifamily Structured Pass Through Certificates, Series K007, Class A2, | 245 | 268 | ||||||
FHLMC Multifamily Structured Pass Through Certificates, Series K008, Class A1, | 164 | 169 | ||||||
FHLMC Multifamily Structured Pass Through Certificates, Series K008, Class A2, | 263 | 278 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 55 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Freddie Mac – 2.3% – continued | ||||||||
FHLMC Multifamily Structured Pass Through Certificates, Series K013, Class A2, | $340 | $368 | ||||||
FHLMC Multifamily Structured Pass Through Certificates, Series K014, Class A2, | 500 | 538 | ||||||
FHLMC Multifamily Structured Pass Through Certificates, Series K017, Class A2, | 250 | 253 | ||||||
FHLMC Multifamily Structured Pass Through Certificates, Series K018, Class A2, | 500 | 504 | ||||||
FHLMC Multifamily Structured Pass Through Certificates, Series K019, Class A1, | 436 | 429 | ||||||
FHLMC Multifamily Structured Pass Through Certificates, Series K020, Class A2, | 250 | 244 | ||||||
FHLMC Multifamily Structured Pass Through Certificates, Series K023, Class A2, | 500 | 484 | ||||||
FHLMC Multifamily Structured Pass Through Certificates, Series K024, Class A2, | 500 | 493 | ||||||
FHLMC Multifamily Structured Pass Through Certificates, Series K025, Class A1, | 481 | 475 | ||||||
FHLMC Multifamily Structured Pass Through Certificates, Series K029, Class A2, | 500 | 517 | ||||||
FHLMC Multifamily Structured Pass Through Certificates, Series K031, Class A2, | 377 | 389 | ||||||
FHLMC Multifamily Structured Pass Through Certificates, Series K033, Class A2, | 500 | 506 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Freddie Mac – 2.3% – continued | ||||||||
FHLMC Multifamily Structured Pass Through Certificates, Series K502, Class A2, | $280 | $281 | ||||||
FHLMC Multifamily Structured Pass Through Certificates, Series K701, Class A2, | 200 | 213 | ||||||
FHLMC Multifamily Structured Pass Through Certificates, Series K702, Class A2, | 125 | 131 | ||||||
FHLMC Multifamily Structured Pass Through Certificates, Series K703, Class A1, | 27 | 28 | ||||||
FHLMC Multifamily Structured Pass Through Certificates, Series K703, Class A2, | 150 | 155 | ||||||
FHLMC Multifamily Structured Pass Through Certificates, Series K705, Class A2, | 100 | 102 | ||||||
FHLMC Multifamily Structured Pass Through Certificates, Series K708, Class A2, | 400 | 403 | ||||||
FHLMC Multifamily Structured Pass Through Certificates, Series K710, Class A2, | 300 | 298 | ||||||
FHLMC Multifamily Structured Pass Through Certificates, Series K712, Class A2, | 100 | 98 | ||||||
FHLMC Multifamily Structured Pass Through Certificates, Series K716, Class A2, | 250 | 258 | ||||||
Pool #1B2934, | 288 | 303 | ||||||
Pool #1B7328, | 44 | 47 | ||||||
Pool #1B7359, | 24 | 24 | ||||||
Pool #1G0911, | 186 | 200 | ||||||
Pool #1G1763, | 24 | 26 |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 56 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Freddie Mac – 2.3% – continued | ||||||||
Pool #1G2620, | $8 | $8 | ||||||
Pool #1G3611, | 24 | 25 | ||||||
Pool #1H2569, | 396 | 424 | ||||||
Pool #1H2605, | 110 | 117 | ||||||
Pool #1J0365, | 108 | 116 | ||||||
Pool #1L1480, | 64 | 66 | ||||||
Pool #1N0243, | 15 | 16 | ||||||
Pool #2B1466, | 178 | 178 | ||||||
Pool #847755, | 56 | 59 | ||||||
Pool #848626, | 167 | 176 | ||||||
Pool #848639, | 206 | 216 | ||||||
Pool TBA, | 1,900 | 1,859 | ||||||
2.50%, 10/14/29 (8) | 1,057 | 1,063 | ||||||
3.00%, 10/14/29 (8) | 689 | 708 | ||||||
3.00%, 10/14/44 (8) | 2,068 | 2,042 | ||||||
3.50%, 10/14/44 (8) | 6,737 | 6,876 | ||||||
50,241 | ||||||||
Freddie Mac Gold – 7.3% | ||||||||
Pool #A16753, | 99 | 111 | ||||||
Pool #A17665, | 150 | 165 | ||||||
Pool #A27950, | 587 | 657 | ||||||
Pool #A31136, | 284 | 318 | ||||||
Pool #A39306, | 528 | 588 | ||||||
Pool #A46224, | 67 | 74 | ||||||
Pool #A48104, | 118 | 131 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Freddie Mac Gold – 7.3% – continued | ||||||||
Pool #A51296, | $82 | $94 | ||||||
Pool #A54897, | 100 | 114 | ||||||
Pool #A56110, | 265 | 294 | ||||||
Pool #A57604, | 477 | 525 | ||||||
Pool #A58718, | 37 | 41 | ||||||
Pool #A59081, | 450 | 501 | ||||||
Pool #A60942, | 172 | 191 | ||||||
Pool #A61560, | 787 | 883 | ||||||
Pool #A61573, | 1,303 | 1,446 | ||||||
Pool #A61597, | 84 | 94 | ||||||
Pool #A64474, | 44 | 49 | ||||||
Pool #A67116, | 32 | 37 | ||||||
Pool #A68761, | 142 | 157 | ||||||
Pool #A69169, | 198 | 213 | ||||||
Pool #A69303, | 71 | 80 | ||||||
Pool #A73778, | 205 | 225 | ||||||
Pool #A74134, | 59 | 67 | ||||||
Pool #A78507, | 925 | 1,026 | ||||||
Pool #A81606, | 56 | 63 | ||||||
Pool #A81856, | 21 | 23 | ||||||
Pool #A83008, | 913 | 1,018 | ||||||
Pool #A84432, | 149 | 161 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 57 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Freddie Mac Gold – 7.3% – continued | ||||||||
Pool #A88476, | $3,066 | $3,339 | ||||||
Pool #A88566, | 1,587 | 1,764 | ||||||
Pool #A89346, | 1,933 | 2,086 | ||||||
Pool #A90749, | 1,379 | 1,502 | ||||||
Pool #A91541, | 475 | 528 | ||||||
Pool #A91626, | 886 | 967 | ||||||
Pool #A91942, | 667 | 726 | ||||||
Pool #A94672, | 1,002 | 1,087 | ||||||
Pool #A96296, | 1,020 | 1,078 | ||||||
Pool #A96310, | 703 | 742 | ||||||
Pool #A96995, | 1,843 | 1,943 | ||||||
Pool #A97443, | 830 | 897 | ||||||
Pool #B10630, | 198 | 208 | ||||||
Pool #B17658, | 7 | 7 | ||||||
Pool #B18502, | 16 | 17 | ||||||
Pool #B18931, | 21 | 22 | ||||||
Pool #C03457, | 623 | 672 | ||||||
Pool #C03812, | 1,119 | 1,155 | ||||||
Pool #C03821, | 2,645 | 2,703 | ||||||
Pool #C04268, | 3,985 | 3,940 | ||||||
Pool #C09004, | 758 | 774 | ||||||
Pool #C09042, | 1,005 | 1,027 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Freddie Mac Gold – 7.3% – continued | ||||||||
Pool #C91009, | $33 | $36 | ||||||
Pool #C91247, | 247 | 274 | ||||||
Pool #C91354, | 969 | 1,034 | ||||||
Pool #C91370, | 576 | 627 | ||||||
Pool #C91388, | 536 | 558 | ||||||
Pool #C91402, | 862 | 920 | ||||||
Pool #C91408, | 555 | 578 | ||||||
Pool #C91485, | 801 | 834 | ||||||
Pool #D97197, | 10 | 11 | ||||||
Pool #D97564, | 195 | 215 | ||||||
Pool #D98301, | 134 | 145 | ||||||
Pool #E03033, | 1,233 | 1,270 | ||||||
Pool #E04044, | 1,928 | 2,025 | ||||||
Pool #E04072, | 513 | 519 | ||||||
Pool #E99030, | 210 | 221 | ||||||
Pool #G01907, | 81 | 87 | ||||||
Pool #G01974, | 779 | 861 | ||||||
Pool #G02064, | 354 | 391 | ||||||
Pool #G02069, | 61 | 68 | ||||||
Pool #G02386, | 637 | 721 | ||||||
Pool #G02391, | 19 | 21 | ||||||
Pool #G02540, | 139 | 155 |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 58 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Freddie Mac Gold – 7.3% – continued | ||||||||
Pool #G02649, | $26 | $29 | ||||||
Pool #G02702, | 71 | 80 | ||||||
Pool #G02789, | 2,033 | 2,295 | ||||||
Pool #G02911, | 44 | 50 | ||||||
Pool #G02973, | 77 | 87 | ||||||
Pool #G03121, | 296 | 327 | ||||||
Pool #G03134, | 122 | 136 | ||||||
Pool #G03176, | 112 | 123 | ||||||
Pool #G03218, | 75 | 84 | ||||||
Pool #G03351, | 162 | 184 | ||||||
Pool #G03513, | 190 | 215 | ||||||
Pool #G03600, | 78 | 87 | ||||||
Pool #G03737, | 1,268 | 1,433 | ||||||
Pool #G03992, | 185 | 208 | ||||||
Pool #G04287, | 340 | 375 | ||||||
Pool #G04459, | 286 | 318 | ||||||
Pool #G04611, | 537 | 605 | ||||||
Pool #G04650, | 430 | 486 | ||||||
Pool #G04817, | 194 | 213 | ||||||
Pool #G05082, | 434 | 480 | ||||||
Pool #G05167, | 507 | 547 | ||||||
Pool #G05457, | 2,486 | 2,706 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Freddie Mac Gold – 7.3% – continued | ||||||||
Pool #G05725, | $849 | $928 | ||||||
Pool #G05733, | 761 | 845 | ||||||
Pool #G05870, | 1,005 | 1,094 | ||||||
Pool #G05876, | 2,513 | 2,752 | ||||||
Pool #G05971, | 2,575 | 2,878 | ||||||
Pool #G06020, | 2,256 | 2,513 | ||||||
Pool #G06767, | 1,573 | 1,740 | ||||||
Pool #G06947, | 594 | 669 | ||||||
Pool #G07030, | 4,214 | 4,462 | ||||||
Pool #G07098, | 1,537 | 1,571 | ||||||
Pool #G07152, | 3,597 | 3,792 | ||||||
Pool #G07171, | 1,833 | 1,935 | ||||||
Pool #G07445, | 941 | 890 | ||||||
Pool #G07787, | 5,818 | 6,150 | ||||||
Pool #G08189, | 39 | 46 | ||||||
Pool #G08192, | 134 | 150 | ||||||
Pool #G08341, | 2,492 | 2,743 | ||||||
Pool #G08477, | 1,398 | 1,429 | ||||||
Pool #G08537, | 3,556 | 3,516 | ||||||
Pool #G08554, | 1,988 | 2,032 | ||||||
Pool #G11776, | 44 | 47 | ||||||
Pool #G12571, | 144 | 153 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 59 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Freddie Mac Gold – 7.3% – continued | ||||||||
Pool #G12673, | $108 | $116 | ||||||
Pool #G12837, | 152 | 163 | ||||||
Pool #G12868, | 205 | 222 | ||||||
Pool #G12869, | 178 | 191 | ||||||
Pool #G13136, | 215 | 232 | ||||||
Pool #G13151, | 200 | 219 | ||||||
Pool #G13201, | 119 | 129 | ||||||
Pool #G13433, | 159 | 175 | ||||||
Pool #G14168, | 293 | 320 | ||||||
Pool #G14239, | 3,524 | 3,759 | ||||||
Pool #G14554, | 456 | 487 | ||||||
Pool #G14891, | 787 | 812 | ||||||
Pool #G15089, | 1,319 | 1,332 | ||||||
Pool #G15134, | 506 | 522 | ||||||
Pool #G18220, | 22 | 24 | ||||||
Pool #G18438, | 689 | 696 | ||||||
Pool #G18442, | 1,343 | 1,410 | ||||||
Pool #G30327, | 34 | 37 | ||||||
Pool #J00991, | 63 | 67 | ||||||
Pool #J02541, | 43 | 45 | ||||||
Pool #J03041, | 66 | 71 | ||||||
Pool #J03736, | 72 | 79 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Freddie Mac Gold – 7.3% – continued | ||||||||
Pool #J05307, | $19 | $21 | ||||||
Pool #J06175, | 29 | 30 | ||||||
Pool #J06465, | 20 | 22 | ||||||
Pool #J06476, | 49 | 53 | ||||||
Pool #J08098, | 46 | 49 | ||||||
Pool #J08202, | 58 | 62 | ||||||
Pool #J08454, | 111 | 120 | ||||||
Pool #J08913, | 51 | 55 | ||||||
Pool #J09148, | 65 | 69 | ||||||
Pool #J09305, | 163 | 172 | ||||||
Pool #J09463, | 118 | 125 | ||||||
Pool #J11136, | 118 | 125 | ||||||
Pool #J12098, | 803 | 847 | ||||||
Pool #J14808, | 1,329 | 1,399 | ||||||
Pool #J17055, | 684 | 704 | ||||||
Pool #J17232, | 672 | 692 | ||||||
Pool #J17932, | 1,143 | 1,178 | ||||||
Pool #J20834, | 1,205 | 1,217 | ||||||
Pool #J21601, | 4,586 | 4,641 | ||||||
Pool #J22069, | 277 | 280 | ||||||
Pool #J22986, | 2,354 | 2,382 | ||||||
Pool #K90071, | 1,844 | 1,880 |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 60 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Freddie Mac Gold – 7.3% – continued | ||||||||
Pool #K90641, | $281 | $293 | ||||||
Pool #K90791, | 732 | 745 | ||||||
Pool #Q02211, | 956 | 1,039 | ||||||
Pool #Q02605, | 2,660 | 2,876 | ||||||
Pool #Q03085, | 562 | 593 | ||||||
Pool #Q04649, | 563 | 575 | ||||||
Pool #Q08894, | 1,272 | 1,304 | ||||||
Pool #Q09009, | 3,306 | 3,490 | ||||||
Pool #Q10389, | 2,146 | 2,204 | ||||||
Pool #Q10438, | 2,072 | 2,118 | ||||||
Pool #Q14324, | 2,022 | 1,999 | ||||||
Pool #Q14676, | 1,335 | 1,320 | ||||||
Pool #Q15843, | 651 | 643 | ||||||
Pool #Q18339, | 604 | 599 | ||||||
Pool #Q19697, | 1,420 | 1,404 | ||||||
Pool #Q19909, | 1,223 | 1,209 | ||||||
Pool #Q20550, | 1,899 | 1,878 | ||||||
Pool #Q21320, | 1,025 | 1,047 | ||||||
Pool #Q24954, | 1,460 | 1,544 | ||||||
Pool #Q27353, | 4,273 | 4,510 | ||||||
Pool #V80003, | 2,700 | 2,687 | ||||||
Pool #V80004, | 756 | 751 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Freddie Mac Gold – 7.3% – continued | ||||||||
Pool #V80058, | $1,225 | $1,217 | ||||||
164,780 | ||||||||
Government National Mortgage Association – 1.3% |
| |||||||
Pool TBA, | 3,825 | 3,849 | ||||||
3.00%, 10/14/44 (8) | 3,000 | 3,020 | ||||||
3.50%, 10/14/44 (8) | 10,000 | 10,333 | ||||||
3.50%, 10/14/44 (8) | 3,500 | 3,617 | ||||||
4.00%, 10/14/44 (8) | 814 | 863 | ||||||
4.50%, 10/14/44 (8) | 6,900 | 7,483 | ||||||
29,165 | ||||||||
Government National Mortgage Association I – 1.9% |
| |||||||
Pool #510835, | 71 | 80 | ||||||
Pool #597889, | 235 | 263 | ||||||
Pool #614169, | 114 | 126 | ||||||
Pool #616879, | 933 | 970 | ||||||
Pool #617739, | 34 | 39 | ||||||
Pool #634431, | 39 | 45 | ||||||
Pool #641416, | 241 | 270 | ||||||
Pool #646341, | 85 | 98 | ||||||
Pool #648538, | 216 | 238 | ||||||
Pool #651753, | 39 | 44 | ||||||
Pool #658560, | 161 | 184 | ||||||
Pool #670114, | 58 | 66 | ||||||
Pool #675211, | 53 | 60 | ||||||
Pool #675484, | 214 | 238 | ||||||
Pool #676360, | 34 | 40 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 61 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Government National Mortgage Association I – 1.9% – continued |
| |||||||
Pool #682899, | $507 | $572 | ||||||
Pool #687824, | 288 | 320 | ||||||
Pool #687900, | 244 | 269 | ||||||
Pool #687901, | 242 | 266 | ||||||
Pool #688461, | 321 | 362 | ||||||
Pool #692309, | 140 | 158 | ||||||
Pool #697645, | 116 | 129 | ||||||
Pool #698236, | 872 | 963 | ||||||
Pool #698336, | 1,069 | 1,161 | ||||||
Pool #699277, | 80 | 90 | ||||||
Pool #700918, | 421 | 468 | ||||||
Pool #700972, | 115 | 128 | ||||||
Pool #701196, | 126 | 142 | ||||||
Pool #703677, | 341 | 379 | ||||||
Pool #704185, | 110 | 122 | ||||||
Pool #717175, | 1,083 | 1,189 | ||||||
Pool #719262, | 411 | 456 | ||||||
Pool #720202, | 711 | 781 | ||||||
Pool #723231, | 542 | 576 | ||||||
Pool #723339, | 422 | 468 | ||||||
Pool #726085, | 376 | 400 | ||||||
Pool #728629, | 1,558 | 1,709 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Government National Mortgage Association I – 1.9% – continued |
| |||||||
Pool #733663, | $3,013 | $3,279 | ||||||
Pool #737286, | 1,147 | 1,259 | ||||||
Pool #737416, | 303 | 321 | ||||||
Pool #738134, | 523 | 554 | ||||||
Pool #738247, | 626 | 680 | ||||||
Pool #745215, | 311 | 330 | ||||||
Pool #747643, | 2,416 | 2,628 | ||||||
Pool #760874, | 417 | 441 | ||||||
Pool #768800, | 338 | 367 | ||||||
Pool #773939, | 1,259 | 1,350 | ||||||
Pool #778957, | 1,187 | 1,237 | ||||||
Pool #781939, | 507 | 587 | ||||||
Pool #782131, | 142 | 158 | ||||||
Pool #782150, | 160 | 178 | ||||||
Pool #782259, | 271 | 299 | ||||||
Pool #782272, | 313 | 348 | ||||||
Pool #782498, | 161 | 182 | ||||||
Pool #782565, | 3,268 | 3,614 | ||||||
Pool #782584, | 299 | 330 | ||||||
Pool #782675, | 245 | 269 | ||||||
Pool #782696, | 761 | 848 | ||||||
Pool #782831, | 106 | 119 |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 62 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Government National Mortgage Association I – 1.9% – continued |
| |||||||
Pool #783176, | $1,567 | $1,667 | ||||||
Pool #783467, | 5,221 | 5,549 | ||||||
Pool #AA6089, | 725 | 735 | ||||||
Pool #AB2891, | 544 | 548 | ||||||
Pool #AD8781, | 636 | 644 | ||||||
Pool #AD9016, | 898 | 906 | ||||||
43,296 | ||||||||
Government National Mortgage Association II – 4.4% |
| |||||||
Pool #3570, | 106 | 123 | ||||||
Pool #3665, | 319 | 363 | ||||||
Pool #3852, | 56 | 63 | ||||||
Pool #3879, | 182 | 205 | ||||||
Pool #3910, | 96 | 109 | ||||||
Pool #3994, | 69 | 77 | ||||||
Pool #4018, | 207 | 234 | ||||||
Pool #4026, | 97 | 107 | ||||||
Pool #4027, | 56 | 63 | ||||||
Pool #4040, | 42 | 48 | ||||||
Pool #4098, | 286 | 323 | ||||||
Pool #4116, | 96 | 108 | ||||||
Pool #4170, | 228 | 257 | ||||||
Pool #4194, | 572 | 642 | ||||||
Pool #4243, | 158 | 174 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Government National Mortgage Association II – 4.4% – continued |
| |||||||
Pool #4244, | $155 | $175 | ||||||
Pool #4245, | 92 | 104 | ||||||
Pool #4269, | 109 | 123 | ||||||
Pool #4290, | 108 | 121 | ||||||
Pool #4344, | 187 | 211 | ||||||
Pool #4345, | 124 | 140 | ||||||
Pool #4425, | 311 | 352 | ||||||
Pool #4559, | 819 | 911 | ||||||
Pool #4561, | 391 | 447 | ||||||
Pool #4617, | 225 | 245 | ||||||
Pool #4619, | 744 | 846 | ||||||
Pool #4713, | 691 | 754 | ||||||
Pool #4747, | 606 | 674 | ||||||
Pool #4881, | 2,096 | 2,172 | ||||||
Pool #4882, | 5,098 | 5,426 | ||||||
Pool #4923, | 505 | 551 | ||||||
Pool #5050, | 467 | 497 | ||||||
Pool #5081, | 902 | 959 | ||||||
Pool #5082, | 945 | 1,029 | ||||||
Pool #5083, | 3,720 | 4,132 | ||||||
Pool #5114, | 3,570 | 3,794 | ||||||
Pool #5141, | 517 | 574 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 63 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Government National Mortgage Association II – 4.4% – continued |
| |||||||
Pool #5175, | $484 | $526 | ||||||
Pool #5176, | 2,426 | 2,696 | ||||||
Pool #5202, | 1,210 | 1,253 | ||||||
Pool #5203, | 822 | 873 | ||||||
Pool #5232, | 683 | 707 | ||||||
Pool #5264, | 64 | 73 | ||||||
Pool #5280, | 900 | 956 | ||||||
Pool #5304, | 846 | 876 | ||||||
Pool #5317, | 436 | 488 | ||||||
Pool #5326, | 1,199 | 1,251 | ||||||
Pool #5331, | 1,381 | 1,430 | ||||||
Pool #654804, | 191 | 214 | ||||||
Pool #737602, | 706 | 756 | ||||||
Pool #752757, | 1,036 | 1,139 | ||||||
Pool #755677, | 668 | 714 | ||||||
Pool #766711, | 2,639 | 2,872 | ||||||
Pool #782433, | 338 | 386 | ||||||
Pool #82579, | 417 | 440 | ||||||
Pool #82737, | 502 | 524 | ||||||
Pool #82960, | 205 | 214 | ||||||
Pool #AA5970, | 2,353 | 2,376 | ||||||
Pool #AA6054, | 3,237 | 3,273 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Government National Mortgage Association II – 4.4% – continued |
| |||||||
Pool #AA6149, | $2,310 | $2,332 | ||||||
Pool #AA6160, | 955 | 990 | ||||||
Pool #AA6243, | 375 | 389 | ||||||
Pool #AB9443, | 1,625 | 1,686 | ||||||
Pool #AD1755, | 1,429 | 1,483 | ||||||
Pool #AD8825, | 910 | 944 | ||||||
Pool #AF5097, | 2,845 | 3,049 | ||||||
Pool #MA0022, | 1,396 | 1,446 | ||||||
Pool #MA0088, | 3,115 | 3,226 | ||||||
Pool #MA0220, | 1,590 | 1,646 | ||||||
Pool #MA0318, | 2,879 | 2,981 | ||||||
Pool #MA0321, | 948 | 1,050 | ||||||
Pool #MA0391, | 5,404 | 5,452 | ||||||
Pool #MA0392, | 1,200 | 1,243 | ||||||
Pool #MA0933, | 2,257 | 2,277 | ||||||
Pool #MA0934, | 880 | 911 | ||||||
Pool #MA1011, | 2,176 | 2,195 | ||||||
Pool #MA1064, | 1,331 | 1,356 | ||||||
Pool #MA1089, | 2,316 | 2,335 | ||||||
Pool #MA1242, | 615 | 631 | ||||||
Pool #MA1285, | 1,136 | 1,177 | ||||||
Pool #MA1839, | 960 | 1,019 |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 64 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 32.8% (7) – continued | ||||||||
Government National Mortgage Association II – 4.4% – continued |
| |||||||
Pool #MA1851, | $290 | $296 | ||||||
Pool #MA1920, | 1,081 | 1,148 | ||||||
Pool #MA2224, | 5,488 | 5,829 | ||||||
98,261 | ||||||||
Tennessee Valley Authority – 0.1% | ||||||||
5.50%, 7/18/17 | 600 | 672 | ||||||
5.25%, 9/15/39 | 1,650 | 2,004 | ||||||
2,676 | ||||||||
Total U.S. Government Agencies | ||||||||
(Cost $726,279) | 737,886 | |||||||
U.S. GOVERNMENT OBLIGATIONS – 35.3% | ||||||||
U.S. Treasury Bonds – 6.4% | ||||||||
8.75%, 8/15/20 | 450 | 620 | ||||||
8.00%, 11/15/21 | 1,125 | 1,557 | ||||||
7.13%, 2/15/23 | 2,000 | 2,729 | ||||||
6.25%, 8/15/23 | 11,550 | 15,116 | ||||||
7.63%, 2/15/25 | 165 | 242 | ||||||
6.00%, 2/15/26 | 11,750 | 15,683 | ||||||
6.13%, 11/15/27 | 9,000 | 12,367 | ||||||
6.25%, 5/15/30 | 6,000 | 8,571 | ||||||
5.38%, 2/15/31 | 4,000 | 5,294 | ||||||
4.50%, 2/15/36 | 475 | 586 | ||||||
4.75%, 2/15/37 | 6,240 | 7,972 | ||||||
5.00%, 5/15/37 | 2,235 | 2,949 | ||||||
4.38%, 2/15/38 | 3,890 | 4,722 | ||||||
4.50%, 5/15/38 | 1,700 | 2,102 | ||||||
3.50%, 2/15/39 | 6,000 | 6,383 | ||||||
4.25%, 5/15/39 | 9,250 | 11,065 | ||||||
4.50%, 8/15/39 | 8,000 | 9,929 | ||||||
4.38%, 11/15/39 | 7,000 | 8,541 | ||||||
4.63%, 2/15/40 | 5,250 | 6,649 | ||||||
4.38%, 5/15/40 | 1,000 | 1,223 | ||||||
3.88%, 8/15/40 | 5,000 | 5,660 | ||||||
3.75%, 8/15/41 | 4,000 | 4,441 | ||||||
3.13%, 2/15/42 | 2,000 | 1,980 | ||||||
2.75%, 8/15/42 | 2,500 | 2,291 | ||||||
3.38%, 5/15/44 | 5,000 | 5,162 | ||||||
143,834 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT OBLIGATIONS – 35.3% – continued | ||||||||
U.S. Treasury Notes – 28.9% | ||||||||
0.25%, 7/15/15 | $10,000 | $10,013 | ||||||
1.75%, 7/31/15 | 10,000 | 10,137 | ||||||
0.38%, 11/15/15 | 50,000 | 50,102 | ||||||
4.50%, 11/15/15 | 2,000 | 2,096 | ||||||
0.25%, 12/15/15 | 25,000 | 25,009 | ||||||
2.13%, 12/31/15 | 5,000 | 5,117 | ||||||
2.13%, 2/29/16 | 5,000 | 5,128 | ||||||
0.38%, 3/15/16 | 25,000 | 25,012 | ||||||
5.13%, 5/15/16 | 3,000 | 3,228 | ||||||
3.25%, 6/30/16 | 10,000 | 10,480 | ||||||
0.63%, 7/15/16 | 10,000 | 10,023 | ||||||
1.50%, 7/31/16 | 5,000 | 5,089 | ||||||
1.00%, 8/31/16 | 10,000 | 10,081 | ||||||
1.00%, 9/30/16 | 25,000 | 25,187 | ||||||
1.00%, 10/31/16 | 5,000 | 5,036 | ||||||
4.63%, 11/15/16 | 2,600 | 2,816 | ||||||
0.88%, 11/30/16 | 30,000 | 30,110 | ||||||
0.88%, 1/31/17 | 20,000 | 20,037 | ||||||
4.63%, 2/15/17 | 500 | 545 | ||||||
1.00%, 3/31/17 | 12,000 | 12,037 | ||||||
3.13%, 4/30/17 | 7,000 | 7,395 | ||||||
4.50%, 5/15/17 | 1,850 | 2,021 | ||||||
0.63%, 5/31/17 | 15,000 | 14,870 | ||||||
0.88%, 6/15/17 | 15,000 | 14,965 | ||||||
0.88%, 7/15/17 | 10,000 | 9,966 | ||||||
4.75%, 8/15/17 | 2,400 | 2,651 | ||||||
0.63%, 8/31/17 | 5,000 | 4,934 | ||||||
0.63%, 9/30/17 | 7,000 | 6,897 | ||||||
4.25%, 11/15/17 | 2,950 | 3,229 | ||||||
0.75%, 12/31/17 | 10,000 | 9,841 | ||||||
0.88%, 1/31/18 | 10,000 | 9,868 | ||||||
3.50%, 2/15/18 | 6,250 | 6,704 | ||||||
0.75%, 2/28/18 | 5,000 | 4,905 | ||||||
3.88%, 5/15/18 | 3,300 | 3,592 | ||||||
1.38%, 6/30/18 | 2,600 | 2,592 | ||||||
1.38%, 7/31/18 | 10,000 | 9,959 | ||||||
4.00%, 8/15/18 | 10,290 | 11,274 | ||||||
1.50%, 8/31/18 | 6,500 | 6,497 | ||||||
3.75%, 11/15/18 | 2,300 | 2,501 | ||||||
1.50%, 12/31/18 | 10,000 | 9,950 | ||||||
2.75%, 2/15/19 | 18,000 | 18,838 | ||||||
1.38%, 2/28/19 | 4,000 | 3,949 | ||||||
1.50%, 2/28/19 | 5,000 | 4,964 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 65 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT OBLIGATIONS – 35.3% – continued | ||||||||
U.S. Treasury Notes – 28.9% – continued | ||||||||
1.63%, 4/30/19 | $10,000 | $9,962 | ||||||
1.63%, 6/30/19 | 10,000 | 9,947 | ||||||
0.88%, 7/31/19 | 2,000 | 1,916 | ||||||
1.63%, 7/31/19 | 10,000 | 9,937 | ||||||
3.63%, 8/15/19 | 18,000 | 19,565 | ||||||
3.38%, 11/15/19 | 16,000 | 17,226 | ||||||
3.63%, 2/15/20 | 5,000 | 5,450 | ||||||
1.13%, 4/30/20 | 4,000 | 3,826 | ||||||
3.50%, 5/15/20 | 5,000 | 5,419 | ||||||
1.38%, 5/31/20 | 15,000 | 14,527 | ||||||
2.63%, 8/15/20 | 3,000 | 3,101 | ||||||
2.63%, 11/15/20 | 3,000 | 3,094 | ||||||
3.63%, 2/15/21 | 12,000 | 13,091 | ||||||
2.13%, 6/30/21 | 1,740 | 1,732 | ||||||
2.13%, 8/15/21 | 36,000 | 35,820 | ||||||
1.63%, 8/15/22 | 19,000 | 18,041 | ||||||
2.75%, 11/15/23 | 5,000 | 5,125 | ||||||
2.75%, 2/15/24 | 10,000 | 10,235 | ||||||
2.50%, 5/15/24 | 10,000 | 10,006 | ||||||
2.38%, 8/15/24 | 15,000 | 14,827 | ||||||
652,492 | ||||||||
Total U.S. Government Obligations | ||||||||
(Cost $775,187) | 796,326 | |||||||
MUNICIPAL BONDS – 1.0% | ||||||||
Arizona – 0.0% | ||||||||
Phoenix Taxable G.O. Unlimited Bonds, Series A, Build America Bonds, | 100 | 110 | ||||||
Salt River Project Agricultural Improvement & Power District Electric Revenue Bonds, Build America Bonds, | 110 | 123 | ||||||
233 | ||||||||
California – 0.4% | ||||||||
Bay Area Toll Bridge Authority Revenue Bonds, Series F-2, Build America Bonds, | 425 | 570 | ||||||
Bay Area Toll Bridge Authority Revenue Bonds, Series S1, Build America Bonds, | 150 | 215 | ||||||
Bay Area Toll Bridge Authority TRB, | 150 | 213 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 1.0% – continued | ||||||||
California – 0.4% – continued | ||||||||
California State G.O. Unlimited Bonds, Build America Bonds, | $135 | $168 | ||||||
7.30%, 10/1/39 | 920 | 1,284 | ||||||
7.60%, 11/1/40 | 400 | 592 | ||||||
California State Public Works Board Lease Revenue Bonds, Series G-2, Build America Bonds, | 50 | 70 | ||||||
California State Taxable G.O. Unlimited Bonds, Build America Bonds, | 405 | 589 | ||||||
California State Various Purpose Taxable G.O. Unlimited Bonds, | 200 | 235 | ||||||
California State Various Purpose Taxable G.O. Unlimited Bonds, Build America Bonds, | 585 | 854 | ||||||
East Bay Municipal Utility District Water System Revenue Bonds, Build America Bonds, | 300 | 375 | ||||||
Los Angeles Community College District G.O. Unlimited Bonds, Build America Bonds, | 150 | 212 | ||||||
Los Angeles Department of Airports Direct Pay TRB, Build America Bonds, | 250 | 310 | ||||||
Los Angeles Unified School District G.O. Unlimited Bonds, Build America Bonds, | 290 | 387 | ||||||
Los Angeles Unified School District Taxable G.O. Unlimited Bonds, Series KR, Build America Bonds, | 335 | 405 | ||||||
Metropolitan Water District of Southern California TRB, Issuer Subseries A, Build America Bonds, | 100 | 119 | ||||||
San Diego County Water Authority Financing Agency Revenue Bonds, Series B, Build America Bonds, | 100 | 129 | ||||||
San Francisco City & County Public Utilities Commission Water Revenue Bonds, Build America Bonds, | 75 | 106 |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 66 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 1.0% – continued | ||||||||
California – 0.4% – continued | ||||||||
San Francisco City & County Public Utilities Commission Water Revenue Bonds, Series B, Build America Bonds, | $300 | $371 | ||||||
University of California Revenue Bonds, Build America Bonds, | 150 | 185 | ||||||
University of California Revenue Bonds, Build America Bonds, Regents University, | 200 | 220 | ||||||
7,609 | ||||||||
Colorado – 0.0% | ||||||||
Denver City & County G.O. Unlimited Bonds, Build America Bonds, | 250 | 279 | ||||||
Denver City & County School District No. 1 Taxable G.O. Unlimited Bonds, Series C, Build America Bonds | 50 | 59 | ||||||
338 | ||||||||
Connecticut – 0.0% | ||||||||
Connecticut State G.O. Unlimited Bonds, Build America Bonds, | 165 | 194 | ||||||
Connecticut State G.O. Unlimited Bonds, | 300 | 362 | ||||||
556 | ||||||||
District of Columbia – 0.0% | ||||||||
District of Columbia Income Tax Secured Revenue Bonds, | 30 | 36 | ||||||
Florida – 0.0% | ||||||||
Florida State Hurricane Catastrophe Fund Finance Corp. Revenue Bonds, Series A, | 500 | 505 | ||||||
Georgia – 0.0% | ||||||||
Municipal Electric Authority of Georgia Plant Vogtle Units TRB, Build America Bonds, | 70 | 88 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 1.0% – continued | ||||||||
Georgia – 0.0% – continued | ||||||||
6.66%, 4/1/57 | $100 | $123 | ||||||
7.06%, 4/1/57 | 300 | 339 | ||||||
550 | ||||||||
Illinois – 0.1% | ||||||||
Chicago Board of Education G.O. Unlimited Bonds, Qualified School Construction Bonds, | 160 | 164 | ||||||
Chicago Taxable G.O. Unlimited Bonds, Project C1, | 100 | 117 | ||||||
Chicago Transit Authority Sales & Transfer Tax Receipts Pension Funding TRB, Series A, | 300 | 366 | ||||||
Chicago Transit Authority Sales Tax Receipts Revenue Bonds, Series B, Build America Bonds, | 140 | 160 | ||||||
Illinois State Taxable G.O. Unlimited Bonds, Build America Bonds, | 750 | 815 | ||||||
Illinois State Taxable G.O. Unlimited Bonds, | 100 | 101 | ||||||
5.67%, 3/1/18 | 300 | 332 | ||||||
Illinois State Taxable Pension G.O. Unlimited Bonds, | 705 | 684 | ||||||
2,739 | ||||||||
Massachusetts – 0.0% | ||||||||
Massachusetts State G.O. Limited Bonds, Series D, Build America Bonds, | 250 | 270 | ||||||
Massachusetts State School Building Authority Sales TRB, Build America Bonds, | 100 | 120 | ||||||
390 | ||||||||
Mississippi – 0.0% | ||||||||
Mississippi State Taxable G.O. Unlimited Bonds, Series F, Build America Bonds, | 100 | 113 | ||||||
Nevada – 0.0% | ||||||||
Clark County Airport Revenue Bonds, Series B, Build America Bonds, | 355 | 401 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 67 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 1.0% – continued | ||||||||
Nevada – 0.0% – continued | ||||||||
Clark County Airport System TRB, | $200 | $273 | ||||||
674 | ||||||||
New Jersey – 0.1% |
| |||||||
New Jersey State EDA Lease Revenue Bonds, Series A (NATL-RE Insured), | 100 | 128 | ||||||
New Jersey State Transportation Trust Fund Authority Revenue Bonds, Series B, Build America Bonds, | 200 | 258 | ||||||
New Jersey State Transportation Trust Fund Authority TRB, Series C, Build America Bonds, | 300 | 335 | ||||||
New Jersey State Turnpike Authority TRB, Series A, Build America Bonds, | 425 | 590 | ||||||
New Jersey State Turnpike Authority TRB, Series F, Build America Bonds, | 125 | 179 | ||||||
Rutgers State University TRB, Series H, Build America Bonds (G.O. of University Insured), | 145 | 175 | ||||||
1,665 | ||||||||
New York – 0.2% |
| |||||||
Metropolitan Transportation Authority Dedicated Fund TRB, Build America Bonds, | 75 | 111 | ||||||
Metropolitan Transportation Authority TRB, Build America Bonds, | 100 | 134 | ||||||
Metropolitan Transportation Authority TRB, Series E, Build America Bonds, | 60 | 81 | ||||||
New York City G.O. Unlimited Bonds, Build America Bonds, | 100 | 117 | ||||||
New York City G.O. Unlimited Bonds, Series H-1, Build America Bonds, | 85 | 104 | ||||||
New York City Municipal Finance Authority Water & Sewer System Revenue Bonds, Build America Bonds, | 200 | 246 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 1.0% – continued | ||||||||
New York – 0.2% – continued | ||||||||
5.72%, 6/15/42 | $250 | $311 | ||||||
New York City Taxable G.O. Unlimited Bonds, Series F-1, Build America Bonds, | 225 | 268 | ||||||
New York City Transitional Finance Authority TRB, Build America Bonds, Future Tax Secured, | 300 | 364 | ||||||
New York State Dormitory Authority Personal Income TRB, Build America Bonds, | 250 | 300 | ||||||
New York State Dormitory Authority Personal Income TRB, Series F, Build America Bonds, | 75 | 89 | ||||||
New York State Urban Development Corp. TRB, Build America Bonds, | 100 | 119 | ||||||
Port Authority of New York & New Jersey Consolidated 160th TRB | 200 | 241 | ||||||
Port Authority of New York & New Jersey Consolidated 164th TRB | 350 | 421 | ||||||
Port Authority of New York & New Jersey Consolidated 168th Revenue Bonds (G.O. of Authority Insured), | 250 | 271 | ||||||
3,177 | ||||||||
Ohio – 0.1% |
| |||||||
American Municipal Power-Ohio, Inc. Revenue Bonds, Issuer Subseries B, Build America Bonds, | 200 | 249 | ||||||
American Municipal Power-Ohio, Inc. TRB, Series B, Build America Bonds, Combined Hydroelectric Projects, | 300 | 463 | ||||||
North East Regional Sewer District Improvement TRB, Build America Bonds, | 145 | 163 | ||||||
Ohio State University TRB, Series A, | 200 | 211 |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 68 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 1.0% – continued | ||||||||
Ohio – 0.1% – continued | ||||||||
Ohio State University TRB, Series C, Build America Bonds, | $190 | $216 | ||||||
Ohio State Water Quality Development Authority Pollution Control TRB, Series B-2, Loan Fund, | 90 | 99 | ||||||
1,401 | ||||||||
Oregon – 0.0% | ||||||||
Oregon State Department of Transportation Highway User TRB, Series A, Sub Lien, Build America Bonds, | 200 | 245 | ||||||
Pennsylvania – 0.0% | ||||||||
State Public School Building Authority TRB, Series A, Qualified School Construction Bonds, | 200 | 219 | ||||||
Tennessee – 0.0% | ||||||||
Metropolitan Government of Nashville & Davidson County Convention Center Authority Subordinate TRB, Series B, Build America Bonds, | 100 | 128 | ||||||
Texas – 0.1% | ||||||||
Dallas Area Rapid Transit Sales TRB, Build America Bonds, | 180 | 206 | ||||||
Dallas Independent School District Taxable G.O. Unlimited Bonds, Series C, Build America Bonds (PSF Gtd.), | 200 | 236 | ||||||
Houston Taxable G.O. Limited Refunding Pension Obligation Bonds, Series A, | 295 | 359 | ||||||
North Texas Tollway Authority TRB, Series B, Build America Bonds, | 125 | 172 | ||||||
San Antonio Electric & Gas Revenue Bonds, Build America Bonds, | 200 | 255 | ||||||
Texas State Transportation Commission Taxable G.O. Unlimited Bonds, Build America Bonds, | 200 | 248 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 1.0% – continued | ||||||||
Texas – 0.1% – continued | ||||||||
Texas State Transportation Commission TRB, Series B, First Tier, | $300 | $351 | ||||||
University of Texas Revenue Bonds, Series C, Build America Bonds, | 100 | 112 | ||||||
University of Texas Revenue Bonds, Series D, Build America Bonds, | 190 | 222 | ||||||
2,161 | ||||||||
Utah – 0.0% | ||||||||
Utah State G.O. Unlimited Bonds, Series B, Build America Bonds, | 95 | 98 | ||||||
Washington – 0.0% | ||||||||
Central Puget Sound Regional Transportation Authority Sales & Use TRB, Build America Bonds, | 80 | 96 | ||||||
Washington State Convention Center Public Facilities District Revenue Bonds, Build America Bonds, | 100 | 120 | ||||||
Washington State G.O. Unlimited Bonds, Series F, Build America Bonds, | 100 | 117 | ||||||
333 | ||||||||
Total Municipal Bonds | ||||||||
(Cost $19,412) | 23,170 | |||||||
NUMBER OF SHARES | VALUE (000s) | |||||||
OTHER – 0.0% (9) | ||||||||
Escrow Lehman Brothers Holdings Capital Trust VII (10) | 50,000 | $ – | ||||||
Total Other | ||||||||
(Cost $39) | – |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 69 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
BOND INDEX FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
INVESTMENT COMPANIES – 4.0% | ||||||||
Northern Institutional Funds - Diversified Assets Portfolio, | 89,523,260 | $89,523 | ||||||
Total Investment Companies | ||||||||
(Cost $89,523) | 89,523 | |||||||
Total Investments – 103.3% | ||||||||
(Cost $2,256,416) | 2,327,076 | |||||||
Liabilities less Other Assets – (3.3)% | (75,059 | ) | ||||||
NET ASSETS – 100.0% | $2,252,017 |
(1) | Century bond maturing in 2111. |
(2) | Century bond maturing in 2114. |
(3) | Century bond maturing in 2112. |
(4) | 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. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Trustees of Northern Funds. |
(5) | Restricted security that has been deemed illiquid. At September 30, 2014, the value of these restricted illiquid securities amounted to approximately $519,000 or 0.0% of net assets. Additional information on these restricted illiquid securities is as follows: |
SECURITY | ACQUISITION AND DATE | ACQUISITION COST (000s) | ||||
Actavis Funding SCS, 2.45%, 6/15/19 | 6/10/14 | $125 | ||||
Enable Midstream Partners L.P., 3.90%, 5/15/24 | 7/10/14 | 201 | ||||
Nabors Industries, Inc., 2.35%, 9/15/16 | 9/4/13 | 35 | ||||
QVC, Inc., 4.45%, 2/15/25 | 8/7/14 | 165 |
(6) | Zero coupon bond reflects effective yield on the date of purchase. |
(7) | The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury. On September 7, 2008, the Federal Housing Finance Agency (“FHFA”) placed Fannie Mae and Freddie Mac in conservatorship. The United States Treasury has put in place a set of financing agreements to ensure that these entities continue to meet their obligations to holders of bonds that they have issued or guaranteed. |
(8) | When-Issued Security. |
(9) | Security listed as “escrow” is considered to be worthless. |
(10) | Issuer has defaulted on terms of debt obligation. |
(11) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
(12) | At March 31, 2014, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $81,754,000 with net purchases of approximately $7,769,000 during the six months ended September 30, 2014. |
Percentages shown are based on Net Assets.
At September 30, 2014, the quality distribution for the Fund as a percentage of investments including cash was:
QUALITY DISTRIBUTION * | % OF INVESTMENTS | |||
U.S. Agency | 24.5% | |||
U.S. Treasury | 41.6 | |||
AAA | 3.8 | |||
AA | 4.7 | |||
A | 11.0 | |||
BBB | 10.6 | |||
Cash Equivalents | 3.8 | |||
Total | 100.0% |
* Credit quality ratings are based on the conservative average of Moody’s, Standard & Poor’s, and Fitch ratings. If ratings from all three rating agencies disagree, the model assigns the middle rating to the security. If two of the three agree, the model assigns the rating from those two to the security. If none of these three rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 70 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Asset-Backed Securities | $ – | | $46,466 | (1) | $– | $46,466 | ||||||||||
Corporate Bonds | – | 430,705 | (1) | – | 430,705 | |||||||||||
Foreign Issuer Bonds | – | 203,000 | (1) | – | 203,000 | |||||||||||
U.S. Government Agencies | – | 737,886 | (1) | – | 737,886 | |||||||||||
U.S. Government Obligations | – | 796,326 | (1) | – | 796,326 | |||||||||||
Municipal Bonds | – | 23,170 | (1) | – | 23,170 | |||||||||||
Investment Companies | 89,523 | – | – | 89,523 | ||||||||||||
Total Investments | $89,523 | $2,237,553 | $– | $2,327,076 |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 71 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
U.S. TREASURY INDEX FUND
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT OBLIGATIONS – 96.3% | ||||||||
U.S. Treasury Bonds – 12.2% |
| |||||||
6.88%, 8/15/25 | $100 | $141 | ||||||
6.00%, 2/15/26 | 125 | 167 | ||||||
6.50%, 11/15/26 | 75 | 105 | ||||||
6.38%, 8/15/27 | 115 | 161 | ||||||
6.13%, 11/15/27 | 200 | 275 | ||||||
5.50%, 8/15/28 | 150 | 197 | ||||||
5.25%, 11/15/28 | 175 | 225 | ||||||
6.25%, 5/15/30 | 175 | 250 | ||||||
5.38%, 2/15/31 | 200 | 265 | ||||||
4.50%, 2/15/36 | 275 | 339 | ||||||
4.75%, 2/15/37 | 125 | 160 | ||||||
4.38%, 2/15/38 | 150 | 182 | ||||||
4.50%, 5/15/38 | 95 | 118 | ||||||
3.50%, 2/15/39 | 160 | 171 | ||||||
4.25%, 5/15/39 | 200 | 239 | ||||||
4.50%, 8/15/39 | 225 | 279 | ||||||
4.38%, 11/15/39 | 260 | 317 | ||||||
4.63%, 2/15/40 | 175 | 222 | ||||||
4.38%, 5/15/40 | 365 | 446 | ||||||
3.88%, 8/15/40 | 250 | 283 | ||||||
4.25%, 11/15/40 | 325 | 390 | ||||||
4.75%, 2/15/41 | 140 | 181 | ||||||
4.38%, 5/15/41 | 190 | 233 | ||||||
3.75%, 8/15/41 | 320 | 355 | ||||||
3.13%, 11/15/41 | 275 | 273 | ||||||
3.13%, 2/15/42 | 150 | 149 | ||||||
3.00%, 5/15/42 | 295 | 285 | ||||||
2.75%, 8/15/42 | 320 | 293 | ||||||
2.75%, 11/15/42 | 465 | 425 | ||||||
3.13%, 2/15/43 | 505 | 498 | ||||||
2.88%, 5/15/43 | 350 | 328 | ||||||
3.63%, 8/15/43 | 675 | 730 | ||||||
3.75%, 11/15/43 | 700 | 774 | ||||||
3.63%, 2/15/44 | 500 | 540 | ||||||
3.38%, 5/15/44 | 775 | 800 | ||||||
3.13%, 8/15/44 | 300 | 295 | ||||||
11,091 | ||||||||
U.S. Treasury Notes – 84.1% |
| |||||||
0.25%, 10/31/15 | 1,000 | 1,001 | ||||||
0.38%, 11/15/15 | 650 | 651 | ||||||
0.25%, 11/30/15 | 1,000 | 1,001 | ||||||
0.25%, 12/15/15 | 500 | 500 | ||||||
0.25%, 12/31/15 | 750 | 750 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT OBLIGATIONS – 96.3% – continued | ||||||||
U.S. Treasury Notes – 84.1% – continued |
| |||||||
2.13%, 12/31/15 | $750 | $768 | ||||||
0.38%, 1/15/16 | 550 | 551 | ||||||
0.38%, 1/31/16 | 700 | 701 | ||||||
0.38%, 2/15/16 | 750 | 751 | ||||||
0.25%, 2/29/16 | 1,000 | 999 | ||||||
2.13%, 2/29/16 | 500 | 513 | ||||||
0.38%, 3/15/16 | 1,000 | 1,000 | ||||||
0.38%, 3/31/16 | 600 | 600 | ||||||
2.25%, 3/31/16 | 950 | 977 | ||||||
0.25%, 4/15/16 | 800 | 798 | ||||||
0.25%, 5/15/16 | 700 | 698 | ||||||
0.38%, 5/31/16 | 850 | 849 | ||||||
1.75%, 5/31/16 | 300 | 307 | ||||||
0.50%, 6/15/16 | 500 | 500 | ||||||
0.50%, 6/30/16 | 1,000 | 1,001 | ||||||
0.63%, 7/15/16 | 1,000 | 1,002 | ||||||
0.50%, 7/31/16 | 500 | 500 | ||||||
1.50%, 7/31/16 | 650 | 662 | ||||||
0.63%, 8/15/16 | 250 | 250 | ||||||
4.88%, 8/15/16 | 400 | 432 | ||||||
0.50%, 8/31/16 | 500 | 500 | ||||||
1.00%, 8/31/16 | 250 | 252 | ||||||
3.00%, 8/31/16 | 300 | 314 | ||||||
0.88%, 9/15/16 | 500 | 503 | ||||||
1.00%, 9/30/16 | 325 | 327 | ||||||
3.00%, 9/30/16 | 700 | 733 | ||||||
0.63%, 10/15/16 | 750 | 750 | ||||||
1.00%, 10/31/16 | 250 | 252 | ||||||
3.13%, 10/31/16 | 200 | 210 | ||||||
0.63%, 11/15/16 | 500 | 499 | ||||||
0.88%, 11/30/16 | 600 | 602 | ||||||
2.75%, 11/30/16 | 500 | 522 | ||||||
0.63%, 12/15/16 | 500 | 499 | ||||||
0.88%, 12/31/16 | 600 | 602 | ||||||
3.25%, 12/31/16 | 500 | 528 | ||||||
0.75%, 1/15/17 | 700 | 700 | ||||||
0.88%, 1/31/17 | 250 | 250 | ||||||
3.13%, 1/31/17 | 550 | 580 | ||||||
0.63%, 2/15/17 | 500 | 498 | ||||||
0.88%, 2/28/17 | 750 | 751 | ||||||
3.00%, 2/28/17 | 250 | 263 | ||||||
0.75%, 3/15/17 | 400 | 399 | ||||||
3.25%, 3/31/17 | 500 | 529 | ||||||
0.88%, 4/30/17 | 1,000 | 999 |
See Notes to the Financial Statements.
FIXED INCOME INDEX FUNDS | 72 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT OBLIGATIONS – 96.3% – continued | ||||||||
U.S. Treasury Notes – 84.1% – continued |
| |||||||
0.88%, 5/15/17 | $750 | $749 | ||||||
0.63%, 5/31/17 | 750 | 744 | ||||||
2.75%, 5/31/17 | 450 | 471 | ||||||
0.88%, 6/15/17 | 500 | 499 | ||||||
0.75%, 6/30/17 | 500 | 497 | ||||||
2.50%, 6/30/17 | 450 | 468 | ||||||
0.88%, 7/15/17 | 350 | 349 | ||||||
0.50%, 7/31/17 | 250 | 246 | ||||||
2.38%, 7/31/17 | 500 | 519 | ||||||
0.88%, 8/15/17 | 500 | 498 | ||||||
0.63%, 8/31/17 | 750 | 740 | ||||||
1.88%, 8/31/17 | 800 | 819 | ||||||
0.63%, 9/30/17 | 350 | 345 | ||||||
1.88%, 9/30/17 | 500 | 511 | ||||||
0.75%, 10/31/17 | 1,000 | 987 | ||||||
1.88%, 10/31/17 | 500 | 511 | ||||||
0.63%, 11/30/17 | 1,900 | 1,866 | ||||||
0.75%, 12/31/17 | 2,000 | 1,968 | ||||||
0.88%, 1/31/18 | 950 | 937 | ||||||
3.50%, 2/15/18 | 650 | 697 | ||||||
0.75%, 2/28/18 | 500 | 490 | ||||||
0.75%, 3/31/18 | 500 | 490 | ||||||
2.88%, 3/31/18 | 250 | 263 | ||||||
0.63%, 4/30/18 | 250 | 243 | ||||||
2.63%, 4/30/18 | 650 | 678 | ||||||
3.88%, 5/15/18 | 200 | 218 | ||||||
4.00%, 8/15/18 | 500 | 548 | ||||||
1.50%, 8/31/18 | 1,100 | 1,099 | ||||||
1.38%, 9/30/18 | 750 | 745 | ||||||
1.25%, 10/31/18 | 750 | 741 | ||||||
3.75%, 11/15/18 | 300 | 326 | ||||||
1.25%, 11/30/18 | 250 | 247 | ||||||
1.38%, 11/30/18 | 250 | 248 | ||||||
1.50%, 12/31/18 | 750 | 746 | ||||||
1.50%, 1/31/19 | 750 | 745 | ||||||
2.75%, 2/15/19 | 650 | 680 | ||||||
1.38%, 2/28/19 | 1,000 | 987 | ||||||
1.13%, 5/31/19 | 400 | 389 | ||||||
0.88%, 7/31/19 | 500 | 479 | ||||||
1.00%, 8/31/19 | 475 | 457 | ||||||
1.63%, 8/31/19 | 250 | 248 | ||||||
1.00%, 9/30/19 | 125 | 120 | ||||||
1.25%, 10/31/19 | 250 | 243 | ||||||
3.38%, 11/15/19 | 300 | 323 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT OBLIGATIONS – 96.3% – continued | ||||||||
U.S. Treasury Notes – 84.1% – continued |
| |||||||
1.00%, 11/30/19 | $350 | $335 | ||||||
1.13%, 12/31/19 | 450 | 433 | ||||||
1.38%, 1/31/20 | 500 | 487 | ||||||
1.25%, 2/29/20 | 350 | 338 | ||||||
1.13%, 3/31/20 | 250 | 239 | ||||||
1.13%, 4/30/20 | 500 | 478 | ||||||
3.50%, 5/15/20 | 550 | 596 | ||||||
1.38%, 5/31/20 | 500 | 484 | ||||||
1.88%, 6/30/20 | 350 | 348 | ||||||
2.00%, 7/31/20 | 200 | 200 | ||||||
2.63%, 8/15/20 | 400 | 414 | ||||||
2.00%, 9/30/20 | 400 | 399 | ||||||
1.75%, 10/31/20 | 600 | 589 | ||||||
2.63%, 11/15/20 | 625 | 645 | ||||||
2.00%, 11/30/20 | 500 | 497 | ||||||
2.38%, 12/31/20 | 400 | 406 | ||||||
2.13%, 1/31/21 | 450 | 450 | ||||||
3.63%, 2/15/21 | 500 | 545 | ||||||
2.00%, 2/28/21 | 525 | 521 | ||||||
2.25%, 3/31/21 | 250 | 251 | ||||||
2.25%, 4/30/21 | 200 | 201 | ||||||
3.13%, 5/15/21 | 725 | 768 | ||||||
2.00%, 5/31/21 | 200 | 198 | ||||||
2.13%, 6/30/21 | 500 | 498 | ||||||
2.25%, 7/31/21 | 475 | 477 | ||||||
2.13%, 8/15/21 | 500 | 498 | ||||||
2.00%, 8/31/21 | 600 | 592 | ||||||
2.13%, 9/30/21 | 400 | 398 | ||||||
2.00%, 11/15/21 | 525 | 517 | ||||||
2.00%, 2/15/22 | 675 | 663 | ||||||
1.75%, 5/15/22 | 575 | 553 | ||||||
1.63%, 8/15/22 | 500 | 475 | ||||||
1.63%, 11/15/22 | 400 | 378 | ||||||
2.00%, 2/15/23 | 675 | 655 | ||||||
1.75%, 5/15/23 | 525 | 498 | ||||||
2.50%, 8/15/23 | 850 | 855 | ||||||
2.75%, 11/15/23 | 750 | 769 | ||||||
2.75%, 2/15/24 | 900 | 921 | ||||||
2.50%, 5/15/24 | 1,000 | 1,001 | ||||||
2.38%, 8/15/24 | 700 | 692 | ||||||
76,260 | ||||||||
Total U.S. Government Obligations | ||||||||
(Cost $86,553) | 87,351 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 73 | FIXED INCOME INDEX FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
U.S. TREASURY INDEX FUND continued | SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
INVESTMENT COMPANIES – 0.6% | ||||||||
Northern Institutional Funds - U.S. Government Portfolio, | 516,471 | $516 | ||||||
Total Investment Companies | ||||||||
(Cost $516) | 516 | |||||||
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
SHORT-TERM INVESTMENTS – 0.5% | ||||||||
U.S. Treasury Bill, | $500 | $500 | ||||||
Total Short-Term Investments | ||||||||
(Cost $500) | 500 | |||||||
Total Investments – 97.4% | ||||||||
(Cost $87,569) | 88,367 | |||||||
Other Assets less Liabilities – 2.6% | 2,374 | |||||||
NET ASSETS – 100.0% | $90,741 |
(1) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
(2) | At March 31, 2014, the value of the Fund’s investment in the U.S. Government Portfolio of the Northern Institutional Funds was approximately $2,205,000 with net sales of approximately $1,689,000 during the six months ended September 30, 2014. |
(3) | Security pledged as collateral to cover margin requirements for open futures contracts. |
Percentages shown are based on Net Assets.
At September 30, 2014, the Fund had open futures contracts as follows:
TYPE | NUMBER OF CONTRACTS | NOTIONAL AMOUNT (000s) | CONTRACT POSITION | CONTRACT EXP. | UNREALIZED GAINS (LOSSES) (000s) | |||||||||||||||
5-Year U.S. Treasury Note | 30 | $3,548 | Long | 12/14 | $(9) |
At September 30, 2014, the quality distribution for the Fund as a percentage of investments including cash was:
QUALITY DISTRIBUTION* | % OF INVESTMENTS | |||
U.S. Treasury | 99.4% | |||
Cash Equivalents | 0.6 | |||
Total | 100.0% |
*Credit quality ratings are based on the conservative average of Moody’s, Standard & Poor’s and Fitch ratings. If ratings from all three rating agencies disagree, the model assigns the middle rating to the security. If two of the three agree, the model assigns the rating from those two to the security. If none of these three rating agencies has assigned a rating, the Portfolio will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
U.S. Government Obligations | $ – | $87,351 | (1) | $ – | $87,351 | |||||||||||
Investment Companies | 516 | – | – | 516 | ||||||||||||
Short-Term Investments | – | 500 | – | 500 | ||||||||||||
Total Investments | $516 | $87,851 | $ – | $88,367 | ||||||||||||
OTHER FINANCIAL INSTRUMENTS |
| |||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (9) | $ – | $ – | $ | (9) |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
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EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULES OF INVESTMENTS | ||||||
CMBS | Commercial Mortgage-Backed Securities | |||||
EDA | Economic Development Authority | |||||
G.O. | General Obligation | |||||
NATL-RE | National Public Finance Guarantee Corporation | |||||
PSF | Permanent School Fund | |||||
TRB | Tax Revenue Bonds |
The interest rates represent either the stated coupon rate, annualized yield on date of purchase for discount notes, the current reset rate for floating rate securities, the 7-day yield for money market funds or, for interest-only or principal-only securities, the current effective yield.
Maturity dates represent the stated date on the security or the puttable date for floating and variable rate securities.
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1. ORGANIZATION
Northern Funds (the “Trust”) is a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust offers 48 funds as of September 30, 2014, each with its own investment objective (e.g., long-term capital appreciation, total return or income consistent with preservation of capital). The Bond Index and U.S. Treasury Index Funds (each a “Fund” and collectively, the “Funds”) are separate investment portfolios of the Trust, both of which are diversified portfolios of the Trust. Each of the Funds is presented herein.
Northern Trust Investments, Inc. (“NTI”), a subsidiary of The Northern Trust Company (“Northern Trust”), serves as the investment adviser for each of the Funds. Northern Trust serves as the custodian and transfer agent for the Trust. NTI serves as the Trust’s administrator. Northern Funds Distributors, LLC is the Trust’s distributor.
2. SIGNIFICANT ACCOUNTING POLICIES
The Trust, which is an investment company within the scope of Financial Accounting Standards Board (“FASB”) Accounting Standards Update 2013-08, follows accounting and reporting guidance under FASB Accounting Standards Codification Topic 946, “Financial Services-Investment Companies”.
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“U.S.”) or “U.S. GAAP.” The preparation of financial statements in conformity with U.S. 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 may differ from those estimates.
The net asset value (“NAV”) of each Fund is determined daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), generally 3:00 P.M. Central Time on each day the NYSE is open for trading.
A) VALUATION OF SECURITIES AND DERIVATIVE CONTRACTS Securities are valued at their fair value. Equity securities traded on U.S. securities exchanges or in the NASDAQ National Market System are principally valued at the regular trading session closing price (generally, 3:00 P.M. Central Time) on the exchange or market in which such securities are principally traded. If any such security is not traded on a valuation date, it is valued at the most recent quoted bid price. Over-the-counter securities not reported in the NASDAQ National Market System are also generally valued at the most recent quoted bid price. Fixed income securities, however, may be valued on the basis of evaluated prices provided
by independent pricing services when such prices are believed to reflect the fair value of such securities or broker provided prices. Such prices may be determined by taking into account other similar securities’ prices, yields, maturities, call features, ratings, prepayment speeds, credit risks, cash flows, institutional size trading in similar groups of securities and developments related to specific securities.
The values of securities of foreign issuers are generally based upon market quotations which, depending upon local convention or regulation, may be the last sale price, the last bid price or the mean between the last bid and asked price as of, in each case, the close of the appropriate exchange or other designated time. Foreign fixed income securities, however, may, like domestic fixed income securities, be valued based on evaluated prices provided by independent pricing services when such prices are believed to reflect the fair value of such securities.
Shares of open-end investment companies are valued at their NAV. Short-term investments with a maturity of 60 days or less are valued at their amortized cost, which NTI, as authorized by the Board of Trustees (the “Board”), has determined approximates fair value.
Any securities for which market quotations are not readily available or are believed to be incorrect are valued at fair value as determined in good faith by NTI under the supervision of the Board. The Trust, in its discretion, may make adjustments to the prices of securities held by a Fund if an event occurs after the publication of fair values normally used by a Fund but before the time as of which the Fund calculates its NAV, depending on the nature and significance of the event, consistent with applicable regulatory guidance and U.S. GAAP. This may occur particularly with respect to certain foreign securities held by a Fund, in which case the Trust may use adjustment factors obtained from an independent evaluation service that are intended to reflect more accurately the fair value of those securities as of the time the Fund’s NAV is calculated.
Northern Trust’s Pricing Unit (the “NT Pricing Unit”) is responsible for supplying a value for each portfolio security used in the NAV computations. Securities or other assets for which market quotations are not readily available or for which market quotations do not represent the value at the time of pricing are fair valued in accordance with policies and procedures established by, and subject to oversight of, the Funds’ Board. NTI has established a pricing and valuation committee (the “Asset Management PVC”) whose membership includes representatives of NTI, as well as independent control personnel from Northern Trust’s
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Legal and Fund Administration and NTI’s Compliance and Risk Management groups. The Asset Management PVC is responsible for the fair valuation of portfolio securities and the monitoring of the fair valuation process, subject to the Board’s oversight.
The Asset Management PVC is responsible for making the determination of the fair value of a security. In making its determination, the Asset Management PVC considers factors that it deems appropriate to the determination of the fair value of the security. Such factors include, but are not limited to, the type of security; the current financial position of the issuer; the cost of the investment; information as to any transactions or offers with respect to a security; market value of a similar freely-traded security; and news events. NTI will continue to monitor markets and the issuer’s circumstances that affect a security’s valuation to determine the continued appropriateness of a security’s fair valuation. The Asset Management PVC will review if the markets and issuer’s circumstances relevant to the valuation of a fair valued security change materially.
For each Level 3 security, if any, that has been fair valued pursuant to the policies adopted by the Board, the fair value price is compared against the last available and next available market quotations. The results of such back testing and fair valued securities are reported quarterly to the Valuation Committee of the Board.
The use of fair valuation involves the risk that the values used by the Funds to price their investments may be higher or lower than the values used by other unaffiliated investment companies and investors to price the same investments.
B) FUTURES CONTRACTS Certain Funds invest in long or short futures contracts for hedging purposes, to increase total return (i.e., for speculative purposes) or to maintain liquidity. When used as a hedge, a Fund will sell a futures contract in order to offset a decrease in the fair value of its portfolio securities that might otherwise result from a market decline. A Fund will do so either to hedge the value of its portfolio securities as a whole, or to protect against declines occurring prior to sales of securities in the value of the securities to be sold. Conversely, a Fund will purchase a futures contract as a hedge in anticipation of purchases of securities. In addition, a Fund will utilize futures contracts in anticipation of changes in the composition of its portfolio holdings. 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 generally required to make a margin deposit with the custodian of a specified amount of liquid assets. Futures are marked to market each day with the change in value reflected in the unrealized gains or losses. Risk may arise as a result of the potential inability of the counterparties to meet the terms of their contracts. Credit risk is mitigated to the extent that the exchange on which a particular futures contract is traded assumes the risk of a counterparty defaulting on its obligations under the contract. The Statements of Operations include any realized gains or losses, on closed futures contracts, in Net realized gains (losses) on futures contracts, and any unrealized gains or losses on open futures contracts in Net change in unrealized appreciation (depreciation) on futures contracts.
At September 30, 2014, the U.S. Treasury Index Fund had entered into exchange-traded long futures contracts. The aggregate fair value of securities pledged to cover margin requirements for open positions was approximately $500,000. Further information on the impact of these positions on the Funds’ financial statements can be found in Note 9.
C) WHEN-ISSUED/DELAYED DELIVERY SECURITIES Certain Funds purchase securities with delivery or payment to occur at a later date beyond the normal settlement period. At the time a Fund enters into the commitment to purchase a security, the transaction is recorded and the value of the commitment is reflected in the NAV. The value of the commitment may vary with market fluctuations. No interest accrues to a Fund until settlement takes place. At the time a Fund enters into this type of transaction, it is required to segregate collateral of cash or liquid assets having a fair value at least equal to the amount of the commitment. The Funds identify securities as segregated with a value that meets or exceeds the value of the commitments. When-issued securities at September 30, 2014, if any, are noted in each Fund’s Schedule of Investments and in aggregate as Payable for when-issued securities, in each Fund’s Statement of Assets and Liabilities.
On February 14, 2014, the Bond Index Fund entered into Master Securities Forward Transaction Agreements (“MSFTA”) with certain counterparties, pursuant to which the Fund has agreed to pledge cash and/or securities as collateral to certain counterparties to secure the repayment of the Fund’s obligations to those counterparties under the MSFTA. No collateral has been pledged for the Fund as of September 30, 2014.
D) MORTGAGE DOLLAR ROLLS Certain Funds enter into mortgage “dollar rolls” in which a Fund sells securities for delivery in the future (generally within 30 days) and simultaneously contracts with the same counterparty to repurchase other mortgage securities on a specified future date. During the roll period, a Fund loses the right to receive principal and interest paid on the securities sold. However, a Fund would benefit to the extent of any difference between the price received for the securities sold and the lower forward price for the future purchase.
For financial reporting and tax purposes, the Funds treat mortgage dollar rolls as two separate transactions; one involving the purchase of a security and a separate transaction involving a sale.
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E) INVESTMENT TRANSACTIONS AND INCOME Investment transactions are recorded as of the trade date. The Funds determine the gain or loss realized from investment transactions by using an identified cost basis method. Interest income is recognized on an accrual basis and includes amortization of premiums and accretion of discounts using the effective yield method. The interest rates reflected in the Schedules of Investments represent either the stated coupon rate, annualized yield on date of purchase for discount notes, the current reset rate for floating rate securities, the 7-day yield for money market funds or, for interest-only or principal-only securities, the current effective yield. Cost of investments includes amortization of premiums and accretion of discounts, if any. Dividend income is recognized on the ex-dividend date. The Funds’ income may be subject to certain state and local taxes.
F) EXPENSES Each Fund is charged for those expenses that are directly attributable to that Fund. Expenses incurred which do not specifically relate to an individual Fund are allocated among all Funds in the Trust in proportion to each Fund’s relative net assets.
G) DISTRIBUTIONS TO SHAREHOLDERS Distributions of dividends from net investment income, if any, are declared and paid as follows:
DECLARATION FREQUENCY | PAYMENT FREQUENCY | |||||||
Bond Index | Daily | Monthly | ||||||
U.S. Treasury Index | Daily | Monthly |
Distributions of net realized capital gains, if any, are declared and paid at least annually. Distributions to shareholders are recorded on the ex-dividend date.
Income dividends and capital gains distributions are determined in accordance with federal income tax regulations. Such amounts may differ from income and capital gains recorded in accordance with U.S. GAAP. Accordingly, the Funds may periodically make reclassifications among certain of their capital accounts to reflect differences between financial reporting and federal income tax basis distributions. The reclassifications are reported in order to reflect the tax treatment for certain permanent differences that exist between income tax regulations and U.S. GAAP. These reclassifications relate to paydowns. These reclassifications have no impact on the net assets or the net asset values per share of the Funds. At March 31, 2014, the following reclassifications were recorded:
Amounts in thousands | UNDISTRIBUTED NET INVESTMENT INCOME | ACCUMULATED UNDISTRIBUTED NET REALIZED GAINS (LOSSES) | ||||||
Bond Index | $6,103 | $(6,103) |
H) FEDERAL INCOME TAXES No provision for federal income taxes has been made since each Fund’s policy is to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute, each year, substantially all of its taxable income and capital gains to its shareholders.
For the period subsequent to October 31, 2013 through the fiscal year ended March 31, 2014, the following Funds incurred net capital losses and/or net currency losses for which the Funds intend to treat as having been incurred in the following fiscal year:
Amounts in thousands | ||||
Bond Index | $315 | |||
U.S. Treasury Index | 168 |
The Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated the eight-year limit on the use of capital loss carryforwards that arise in taxable years beginning after its enactment date of December 22, 2010. The changes became effective for the Bond Index Fund for the fiscal year ended March 31, 2012, and for the U.S. Treasury Index Fund, for the fiscal year ended November 30, 2012. Consequently, capital losses incurred by the Funds in taxable years beginning with the taxable year ended March 31, 2012 or November 30, 2012, as applicable, can be carried forward for an unlimited period. However, capital losses incurred by the Funds in taxable years beginning before the taxable year ended March 31, 2012 or November 30, 2012, as applicable, with an expiration date may not be used to offset capital gains until all net capital losses incurred in taxable years beginning with the taxable year ended March 31, 2012 or November 30, 2012, as applicable, without an expiration date have been utilized. As a result, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The Funds’ ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
Capital losses incurred that will be carried forward indefinitely under the provisions of the Act are as follows:
Amounts in thousands | SHORT-TERM CAPITAL LOSS CARRYFORWARD | LONG-TERM CAPITAL LOSS CARRYFORWARD | ||||||
Bond Index | $3,808 | * | $ — | * |
* | Amounts include acquired capital loss carryovers which may be limited under current tax laws. |
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At March 31, 2014, the tax components of undistributed net investment income, undistributed realized gains and unrealized gains (losses) were as follows:
UNDISTRIBUTED | ||||||||||||
Amounts in thousands | ORDINARY INCOME* | LONG-TERM CAPITAL GAINS | UNREALIZED GAIN (LOSSES) | |||||||||
Bond Index | $1,165 | $ — | $56,169 | |||||||||
U.S. Treasury Index | 29 | 79 | (7 | ) |
* | Ordinary income includes taxable market discount income and short-term capital gains, if any. |
The tax character of distributions paid during the fiscal year ended March 31, 2014, was as follows:
DISTRIBUTIONS FROM | ||||||||||||
Amounts in thousands | TAX-EXEMPT INCOME | ORDINARY INCOME* | LONG-TERM CAPITAL GAINS | |||||||||
Bond Index | $ — | $65,153 | $1,946 | |||||||||
U.S. Treasury Index | — | 1,515 | 1,289 |
* | Ordinary income includes taxable market discount income and short-term capital gains, if any. |
The tax character of distributions paid during the fiscal year ended March 31, 2013, for the Bond Index Fund was as follows:
DISTRIBUTIONS FROM | ||||||||||||
Amounts in thousands | TAX-EXEMPT INCOME | ORDINARY INCOME* | LONG-TERM CAPITAL GAINS | |||||||||
Bond Index | $ — | $75,771 | $12,285 |
* | Ordinary income includes taxable market discount income and short-term capital gains, if any. |
The tax character of distributions paid during the four months ended March 31, 2013 for the U.S. Treasury Index Fund was as follows:
DISTRIBUTIONS FROM | ||||||||||||
Amounts in thousands | TAX-EXEMPT INCOME | ORDINARY INCOME* | LONG-TERM CAPITAL GAINS | |||||||||
U.S. Treasury Index | $ — | $987 | $4,277 |
* | Ordinary income includes taxable market discount income and short-term capital gains, if any. |
As of March 31, 2014, neither Fund had uncertain tax positions that would require financial statement recognition or disclosure. The Funds’ federal tax returns filed for the fiscal years ended March 31, 2011 through March 31, 2013 or November 30, 2011 through November 30, 2012 as applicable, remain subject to examination by the Internal Revenue Service. Interest or penalties incurred, if any, on future unknown, uncertain tax positions taken by the Funds will be recorded as Interest expense on the Statements of Operations.
3. SERVICE PLAN
The Trust has adopted a Service Plan pursuant to which the Trust may enter into agreements with Northern Trust, its affiliates or other institutions (“Service Organizations”) under which the Service Organizations agree to provide certain administrative support services and, in some cases, personal and account maintenance services for their customers, who are beneficial owners of shares of the Funds. As compensation for services provided pursuant to the Service Plan, the Service Organizations receive a fee at an annual rate of up to 0.25 percent of the average daily net assets of the Funds beneficially owned by their customers. There were no shareholder servicing fees paid to Northern Trust or its affiliates during the six months ended September 30, 2014.
These expenses are included in the Statements of Operations under Shareholder servicing fees for the six months ended September 30, 2014.
4. BANK BORROWINGS
The Trust entered into a $150,000,000 senior unsecured revolving credit facility on November 25, 2013, which is administered by JPMorgan Chase Bank, N.A., for liquidity and other purposes (the “Credit Facility”). The interest rate charged under the Credit Facility is equal to the sum of (i) the Federal Funds Rate plus (ii) if the one-month London Interbank Offered Rate (“LIBOR”) on the date of borrowing exceeds such Federal Funds Rate, the amount by which it so exceeds, plus (iii) 1.00 percent. In addition, there is an annual commitment fee of 0.07 percent on the unused portion of the credit line under the Credit Facility, payable quarterly in arrears, which is included in Other expenses on the Statements of Operations.
At a meeting held on November 20, 2014, the Board approved an agreement that terminated, replaced and restated the Credit Facility (as so terminated, replaced and restated, the “New Credit Facility”). The New Credit Facility is in the amount of $250,000,000. The interest rate charged under the New Credit Facility is the same as it was for the Credit Facility. In addition, there is an annual commitment fee of 0.08 percent on the unused portion of the credit line under the New Credit Facility, payable quarterly in arrears. The New Credit Facility is anticipated to go into effect on November 24, 2014 and will expire on November 23, 2015, unless renewed.
At September 30, 2014, the Funds did not have any outstanding borrowings. The Funds did not have any borrowings or incur any interest expense for the six months ended September 30, 2014.
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5. MANAGEMENT AND OTHER AGREEMENTS
Shareholders of each Fund have approved a new management agreement, effective June 30, 2014, between the Fund and NTI (the “Management Agreement”), to provide the Fund with investment advisory and administration services under a single agreement and fee structure. As compensation for advisory and administration services and the assumption of related expenses, NTI is entitled to a management fee, computed daily and payable monthly, at annual rates set forth in the first table below (expressed as a percentage of each Fund’s respective average daily net assets). Prior to June 30, 2014, as compensation for advisory services and the assumption of related expenses, NTI was entitled to an advisory fee, computed daily and payable monthly, at annual rates set forth in the second table below (expressed as a percentage of each Fund’s respective average daily net assets.) Prior to June 30, 2014, NTI, as administrator, was also entitled to an administration fee from the Funds at the annual rate of 0.15% of the average daily net assets of each Fund.
NTI has contractually agreed to reimburse a portion of the operating expenses of each Fund (other than acquired fund fees and expenses, the Fund’s proportionate share of the increase in compensation paid to each disinterested Trustee, expenses related to third-party consultants engaged by the Board of Trustees of the Trust, membership dues paid to the Investment Company Institute and Mutual Fund Directors Forum, and extraordinary expenses and interest) as shown on the accompanying Statements of Operations, to adhere to the expense limitations set forth below. The amount of the reimbursement is included in Less expenses reimbursed by the investment advisor as a reduction to Total Expenses in the Statements of Operations.
At September 30, 2014, the annual management fees and contractual expense limitations for the Funds were based on the following annual rates as set forth in the table below.
CONTRACTUAL | ||||||||
Fund | ANNUAL MANAGEMENT FEES | EXPENSE LIMITATIONS | ||||||
Bond Index | 0.13% | 0.15% | ||||||
U.S. Treasury Index | 0.13% | 0.15% |
Prior to June 30, 2014, the advisory fees for the Funds were based on the following annual rates as set forth in the table below. There was no change to the contractual expense limitations described above.
Fund | CONTRACTUAL ANNUAL ADVISORY FEES | |||
Bond Index | 0.15% | |||
U.S. Treasury Index | 0.30% |
The contractual reimbursement arrangement is expected to continue until at least July 31, 2015. The contractual reimbursement arrangement will continue automatically for periods of one year (each such one year period, a “Renewal Year”). The arrangement may be terminated, as to any succeeding Renewal Year, by NTI or a Fund upon 60 days’ written notice prior to the end of the current Renewal Year. The Board may terminate the contractual arrangement at any time with respect to a Fund if it determines that it is in the best interest of the Fund and its shareholders.
Effective June 30, 2014, as compensation for services rendered as transfer agent, including the assumption by Northern Trust of the expenses related thereto, Northern Trust receives a fee, computed daily and payable monthly, at an annual rate of 0.015 percent of the average daily net assets of the Funds. Prior to June 30, 2014, Northern Trust received transfer agent fees at an annual rate of 0.10 percent of the average daily net assets, accrued daily and payable monthly. The transfer agent fees are reflected in the Funds’ Statements of Operations.
NTI has a sub-administration agreement with Northern Trust, pursuant to which Northern Trust performs certain administrative services for the Funds. NTI pays Northern Trust for its sub-administration services out of NTI’s management fees. Prior to June 30, 2014, these sub-administration services were paid out of NTI’s administration fees.
For compensation as custodian, Northern Trust receives an amount based on a pre-determined schedule of charges approved by the Board. The Funds have entered into an expense off-set arrangement with the custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Funds’ custodian expenses. Custodian credits, if any, are reflected as Less custodian credits in the Funds’ Statements of Operations.
Northern Funds Distributors, LLC, the distributor for the Funds, received no compensation from the Funds under its distribution agreement. However, it received compensation from NTI for its services as distributor pursuant to a separate letter agreement between it and NTI.
Certain officers of the Trust are also officers of Northern Trust and NTI. All officers serve without compensation from the Funds. The Trust provided a deferred compensation plan for its Trustees who are not officers of Northern Trust or NTI. Prior to August 22, 2013, under the deferred compensation plan, Trustees may have elected to defer all or a portion of their compensation. Effective August 22, 2013, the Trustees may no longer defer their compensation. Any amounts deferred and invested under the plan shall remain invested pursuant to the terms of the plan. Each Trustee’s account shall be deemed to be invested in shares of the Diversified Assets Portfolio of Northern Institutional
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Funds and/or the Global Tactical Asset Allocation Fund of the Trust and/or at the discretion of the Trust, another money market fund selected by the Trust that complies with the provisions of Rule 2a-7 under the 1940 Act or one or more short-term fixed-income instruments selected by the Trust that are “eligible securities” as defined by that rule. The net investment income, gains and losses achieved by such deemed investment shall be credited to the Trustee’s account as provided in the plan.
6. RELATED PARTY TRANSACTIONS
The Bond Index and U.S. Treasury Index Funds currently invest uninvested cash in the Diversified Assets Portfolio or the U.S. Government Portfolio (the “Portfolios”) of Northern Institutional Funds, respectively, an investment company which is advised by NTI, pursuant to the terms of an exemptive order issued by the SEC. Accordingly, each Fund bears indirectly a proportionate share of the applicable Portfolio’s operating expenses. These operating expenses include the management, transfer agency and custody fees that the Portfolios pay to NTI and/or its affiliates. Currently, the aggregate annual rate of management, transfer agency and custody fees payable to NTI and/or its affiliates on any assets invested in the Diversified Assets Portfolio, or the U.S. Government Portfolio is 0.35 percent of average daily net assets. However, pursuant to the exemptive order, NTI will reimburse each Fund for advisory fees otherwise payable by the Fund on any assets invested in an affiliated money market fund. This reimbursement is included in Less expenses reimbursed by the investment adviser as a reduction to Total Expenses in the Statements of Operations. This reimbursement’s impact on each Fund’s net expense and net investment income ratios is included in each Fund’s Financial Highlights. The exemptive order requires the Funds’ Board to determine before a vote on the Management Agreement that the advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds are not for duplicative services.
7. INVESTMENT TRANSACTIONS
For the six months ended September 30, 2014, the aggregate costs of purchases and proceeds from sales of securities (excluding short-term investments) for the Funds were as follows:
PURCHASES | SALES | |||||||||||||||
Amounts in thousands | U.S. GOVERNMENT | OTHER | U.S. GOVERNMENT | OTHER | ||||||||||||
Bond Index | $ | 691,690 | $ | 58,496 | $ | 702,484 | $ | 62,840 | ||||||||
U.S. Treasury Index | 22,561 | — | 47,410 | — |
The difference between book basis and tax basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains on certain foreign currency contracts, the deferral of post-October currency and capital losses for tax purposes, and the timing of income recognition on investments in real estate investment trusts and passive foreign investment companies.
At September 30, 2014, for federal income 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:
Amounts in thousands | UNREALIZED APPRECIATION | UNREALIZED DEPRECIATION | NET APPRECIATION (DEPRECIATION) | COST BASIS OF SECURITIES | ||||||||||||
Bond Index | $ | 83,366 | $ | (12,812 | ) | $ | 70,554 | $ | 2,256,522 | |||||||
U.S. Treasury Index | 1,272 | (518 | ) | 754 | 87,613 |
8. CAPITAL SHARE TRANSACTIONS
Transactions in capital shares for the six months ended September 30, 2014 were as follows:
Amounts in thousands | SHARES SOLD | PROCEEDS FROM SHARES SOLD | SHARES FROM REINVESTED DIVIDENDS | REINVESTMENT OF DIVIDENDS | SHARES REDEEMED | PAYMENTS FOR SHARES REDEEMED | NET INCREASE (DECREASE) IN SHARES | NET INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
Bond Index | 20,079 | $ | 213,719 | 615 | $ | 6,545 | (22,167 | ) | $ | (235,955 | ) | (1,473 | ) | $ | (15,691 | ) | ||||||||||||||||
U.S. Treasury Index | 887 | 19,166 | 34 | 740 | (2,058 | ) | (44,501 | ) | (1,137 | ) | (24,595 | ) |
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NOTES TO THE FINANCIAL STATEMENTS continued
Transactions in capital shares for the fiscal year or period ended March 31, 2014 were as follows:
Amounts in thousands | SHARES SOLD | PROCEEDS FROM SHARES SOLD | SHARES FROM REINVESTED DIVIDENDS | REINVESTMENT OF DIVIDENDS | SHARES REDEEMED | PAYMENTS FOR SHARES REDEEMED | NET INCREASE (DECREASE) IN SHARES | NET INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
Bond Index | 63,677 | $ | 673,905 | 1,363 | $ | 14,371 | (94,180 | ) | $ | (994,023 | ) | (29,140 | ) | $ | (305,747 | ) | ||||||||||||||||
U.S. Treasury Index | 2,087 | 45,496 | 117 | 2,506 | (2,814 | ) | (61,170 | ) | (610 | ) | (13,168 | ) |
9. DERIVATIVE INSTRUMENTS
None of the derivatives held in the Funds have been designated as hedging instruments. Information concerning the types of derivatives in which the Funds invest, the objectives for using them and their related risks can be found in Note 2.
Below are the types of derivatives by primary risk exposure as presented in the Statements of Assets and Liabilities as of September 30, 2014:
Amounts in thousands | ASSETS | LIABILITIES | ||||||||||||
FUND NAME | DERIVATIVE TYPE | STATEMENTS OF ASSETS AND LIABILITIES LOCATION | VALUE | STATEMENTS OF ASSETS AND LIABILITIES LOCATION | VALUE | |||||||||
U.S. Treasury Index | Interest rate contracts | Net Assets — Unrealized appreciation | $ | — | * | Net Assets — Unrealized depreciation | $ | (9 | )* |
* | Includes cumulative appreciation/depreciation on futures contracts as reported in the Schedule of Investments footnotes. Only the current day’s variation margin is reported within the Statements of Assets and Liabilities. |
The following tables set forth by primary risk exposure the Funds’ realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the six months ended September 30, 2014:
Amounts in thousands | AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVE CONTRACTS | |||||||
FUND NAME | DERIVATIVE TYPE | STATEMENTS OF OPERATIONS LOCATION | VALUE | |||||
U.S. Treasury Index | Interest rate contracts | Net realized gains (losses) on futures contracts | $ | 17 |
Amounts in thousands | CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVE CONTRACTS | |||||||
FUND NAME | DERIVATIVE TYPE | STATEMENTS OF OPERATIONS LOCATION | VALUE | |||||
U.S. Treasury Index | Interest rate contracts | Net change in unrealized appreciation (depreciation) on futures contracts | $ | 15 |
Volume of derivative activity for the six months ended September 30, 2014*:
FUTURES CONTRACTS | ||||||||
NUMBER OF TRADES | AVERAGE NOTIONAL AMOUNT** | |||||||
U.S. Treasury Index | 2 | $3,632 |
* | Activity during the period is measured by number of trades during the period and average notional amount for futures and interest rate contracts. |
** | Amounts in thousands. |
FIXED INCOME INDEX FUNDS | 82 | NORTHERN FUNDS SEMIANNUAL REPORT |
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FIXED INCOME INDEX FUNDS
SEPTEMBER 30, 2014 (UNAUDITED) |
10. INDEMNIFICATIONS AND WARRANTIES
In the ordinary course of their business, the Funds may enter into contracts or agreements that contain indemnifications or warranties. Future events could occur that lead to the execution of these provisions against the Funds. The maximum exposure to the Funds under these provisions is unknown, as this would involve future claims that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and believe the risk of loss to be remote.
11. SUBSEQUENT EVENTS
Management has evaluated subsequent events for the Funds through the date the financial statements were issued, and has concluded that there are no recognized or non-recognized subsequent events relevant for financial statement disclosure.
NORTHERN FUNDS SEMIANNUAL REPORT | 83 | FIXED INCOME INDEX FUNDS |
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FIXED INCOME INDEX FUNDS
SEPTEMBER 30, 2014 (UNAUDITED) |
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, if any, and (2) ongoing costs, including advisory fees and other fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, April 1, 2014 through September 30, 2014.
ACTUAL EXPENSES
The first line of the tables below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid 4/1/14 - 9/30/14” to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the tables below provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5 percent per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5 percent hypothetical example with the 5 percent hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads), redemption fees, or exchange fees or other costs such as advisory fees related to affiliated money market funds investments, but shareholders of other funds may incur such costs. If these fees were included, your costs would have been higher. The information also does not reflect reimbursements on advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds (as described on page 81), which may result in different expense ratios in the Financial Highlights. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
BOND INDEX
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/2014 | ENDING ACCOUNT VALUE 9/30/2014 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.15 | % | $ | 1,000.00 | $ | 1,022.30 | $ | 0.76 | ||||||||
Hypothetical** | 0.15 | % | $ | 1,000.00 | $ | 1,024.32 | $ | 0.76 |
U.S. TREASURY INDEX
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/2014 | ENDING ACCOUNT VALUE 9/30/2014 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.16 | % | $ | 1,000.00 | $ | 1,016.50 | $ | 0.81 | ||||||||
Hypothetical** | 0.16 | % | $ | 1,000.00 | $ | 1,024.27 | $ | 0.81 |
* | Expenses are calculated using the Funds' annualized expense ratios, which represent ongoing expenses as a percentage of net assets for the six months ended September 30, 2014. Expenses are calculated by multiplying the annualized expense ratio by the average account value over the period; then multiplying the result by the number of days in the most recent fiscal half year (183); and then dividing that result by the number of days in the current fiscal year (365). |
** | Hypothetical expenses are based on the Funds' actual annualized expense ratios and an assumed rate of return of 5 percent per year before expenses. |
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FIXED INCOME INDEX FUNDS
PORTFOLIO HOLDINGS
Northern Funds files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s Web site at sec.gov. You may also review and obtain copies at the SEC’s Public Reference Room in Washington, D.C. Information about the Public Reference Room may be obtained by calling 800-SEC-0330.
PROXY VOTING
Northern Funds’ Proxy Voting Policies and Procedures and each Fund’s portfolio securities voting record for the 12-month period ended June 30 are available upon request and without charge by visiting Northern Funds’ Web site at northernfunds.com or the SEC’s Web site at sec.gov or by calling the Northern Funds Center at 800-595-9111.
FIXED INCOME INDEX FUNDS | 88 | NORTHERN FUNDS SEMIANNUAL REPORT |
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TAX-EXEMPT FIXED INCOME FUNDS
2 | ||||
4 | ||||
6 | ||||
8 | ||||
15 | ||||
15 | ||||
19 | ||||
25 | ||||
28 | ||||
33 | ||||
49 | ||||
72 | ||||
80 | ||||
81 | ||||
89 | ||||
92 |
The 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.
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 forward-looking 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.
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 SEMIANNUAL REPORT | 1 | TAX-EXEMPT FIXED INCOME FUNDS |
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TAX-EXEMPT FIXED INCOME FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
Amounts in thousands, except per share data | ARIZONA TAX-EXEMPT | CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND | ||||||
ASSETS: | ||||||||
Investments, at cost | $88,243 | (1) | $402,600 | (2) | ||||
Investments, at value | $94,508 | (3) | $424,181 | (4) | ||||
Dividend income receivable | – | – | ||||||
Interest income receivable | 786 | 3,665 | ||||||
Receivable for securities sold | – | – | ||||||
Receivable for fund shares sold | – | 1,824 | ||||||
Receivable from investment adviser | 2 | 2 | ||||||
Prepaid and other assets | 5 | 6 | ||||||
Total Assets | 95,301 | 429,678 | ||||||
LIABILITIES: | ||||||||
Payable for securities purchased | – | 2,985 | ||||||
Payable for when-issued securities | 6,809 | 28,040 | ||||||
Payable for fund shares redeemed | 36 | 673 | ||||||
Distributions to shareholders | 45 | 164 | ||||||
Payable to affiliates: | ||||||||
Management fees (Note 5) | 7 | 28 | ||||||
Custody and accounting fees | 2 | 3 | ||||||
Shareholder servicing fees | 2 | 2 | ||||||
Transfer agent fees | – | 1 | ||||||
Trustee fees | 6 | 6 | ||||||
Accrued other liabilities | 21 | 21 | ||||||
Total Liabilities | 6,928 | 31,923 | ||||||
Net Assets | $88,373 | $397,755 | ||||||
ANALYSIS OF NET ASSETS: | ||||||||
Capital stock | $81,992 | $377,743 | ||||||
Accumulated undistributed net investment income (loss) | (10 | ) | (4 | ) | ||||
Accumulated undistributed net realized gain (loss) | 126 | (1,565 | ) | |||||
Net unrealized appreciation | 6,265 | 21,581 | ||||||
Net Assets | $88,373 | $397,755 | ||||||
Shares Outstanding ($.0001 par value, unlimited authorization) | 8,115 | 36,742 | ||||||
Net Asset Value, Redemption and Offering Price Per Share | $10.89 | $10.83 |
(1) | Amounts include cost from the Tax-Exempt Portfolio of the Northern Institutional Funds of $9,081, $8,630, $268,723, $130,010 and $31,073, respectively. |
(2) | Amounts include cost from the California Municipal Money Market Fund of the Northern Funds of $47,734 and $11,957, respectively. |
(3) | Amounts include value from the Tax-Exempt Portfolio of the Northern Institutional Funds of $9,081, $8,630, $268,723, $130,010 and $31,073, respectively. |
(4) | Amounts include value from the California Municipal Money Market Fund of the Northern Funds of $47,734 and $11,957, respectively. |
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 2 | NORTHERN FUNDS SEMIANNUAL REPORT |
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SEPTEMBER 30, 2014 (UNAUDITED) |
CALIFORNIA TAX-EXEMPT FUND | HIGH YIELD MUNICIPAL FUND | INTERMEDIATE TAX-EXEMPT FUND | SHORT- INTERMEDIATE TAX-EXEMPT FUND | TAX-EXEMPT FUND | ||||||||||||||
$123,932 | (2) | $233,982 | (1) | $2,449,685 | (1) | $1,379,072 | (1) | $738,678 | (1) | |||||||||
$137,568 | (4) | $258,959 | (3) | $2,524,726 | (3) | $1,405,642 | (3) | $788,512 | (3) | |||||||||
– | – | 2 | 1 | 1 | ||||||||||||||
1,067 | 4,019 | 24,284 | 15,081 | 8,539 | ||||||||||||||
2,239 | – | 14,955 | – | 17,872 | ||||||||||||||
59 | 679 | 706 | 3,408 | 1,294 | ||||||||||||||
3 | 2 | 18 | 4 | 5 | ||||||||||||||
6 | 4 | 11 | 13 | 3 | ||||||||||||||
140,942 | 263,663 | 2,564,702 | 1,424,149 | 816,226 | ||||||||||||||
– | – | 41,923 | 11,767 | 10,631 | ||||||||||||||
12,565 | – | 33,104 | 3,199 | 27,409 | ||||||||||||||
– | 248 | 1,116 | 411 | 1,368 | ||||||||||||||
71 | 186 | 685 | 284 | 367 | ||||||||||||||
9 | 33 | 173 | 99 | 55 | ||||||||||||||
2 | 2 | 6 | 3 | 3 | ||||||||||||||
9 | 4 | 132 | 14 | 17 | ||||||||||||||
– | 1 | 6 | 3 | 2 | ||||||||||||||
6 | 6 | 21 | 10 | 12 | ||||||||||||||
21 | 23 | 58 | 37 | 26 | ||||||||||||||
12,683 | 503 | 77,224 | 15,827 | 39,890 | ||||||||||||||
$128,259 | $263,160 | $2,487,478 | $1,408,322 | $776,336 | ||||||||||||||
$116,087 | $274,007 | $2,409,923 | $1,382,617 | $744,359 | ||||||||||||||
(2 | ) | – | (201 | ) | (289 | ) | (256 | ) | ||||||||||
(1,462 | ) | (35,824 | ) | 2,715 | (576 | ) | (17,601 | ) | ||||||||||
13,636 | 24,977 | 75,041 | 26,570 | 49,834 | ||||||||||||||
$128,259 | $263,160 | $2,487,478 | $1,408,322 | $776,336 | ||||||||||||||
10,963 | 29,874 | 233,666 | 134,296 | 72,352 | ||||||||||||||
$11.70 | $8.81 | $10.65 | $10.49 | $10.73 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 3 | TAX-EXEMPT FIXED INCOME FUNDS |
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TAX-EXEMPT FIXED INCOME FUNDS
STATEMENTS OF OPERATIONS
Amounts in thousands | ARIZONA TAX-EXEMPT FUND | CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND | ||||||
INVESTMENT INCOME: | ||||||||
Interest income | $1,615 | $5,978 | ||||||
Dividend income | – | 2 | (1) | |||||
Total Investment Income | 1,615 | 5,980 | ||||||
EXPENSES: | ||||||||
Management fees (Note 5) | 93 | 426 | ||||||
Investment advisory fees (Note 5) | 110 | 499 | ||||||
Administration fees (Note 5) | 30 | 136 | ||||||
Custody fees | 11 | 26 | ||||||
Accounting fees | 7 | 14 | ||||||
Transfer agent fees | 23 | 106 | ||||||
Registration fees | 8 | 7 | ||||||
Printing fees | 9 | 9 | ||||||
Audit fees | 9 | 9 | ||||||
Legal fees | 8 | 8 | ||||||
Shareholder servicing fees | 10 | 14 | ||||||
Trustee fees | 9 | 9 | ||||||
Other | 5 | 5 | ||||||
Total Expenses | 332 | 1,268 | ||||||
Less expenses reimbursed by investment adviser | (140 | ) | (409 | ) | ||||
Net Expenses | 192 | 859 | ||||||
Net Investment Income | 1,423 | 5,121 | ||||||
NET REALIZED AND UNREALIZED GAINS (LOSSES): | ||||||||
Net realized gains on: | ||||||||
Investments | 590 | 3,798 | ||||||
Net change in unrealized appreciation on: | ||||||||
Investments | 1,146 | 5,210 | ||||||
Net Gains | 1,736 | 9,008 | ||||||
Net Increase in Net Assets Resulting from Operations | $3,159 | $14,129 |
(1) | Amounts include dividend income from the California Municipal Money Market Fund of the Northern Funds of $2 and $1, respectively. |
(2) | Amounts include dividend income from the Tax-Exempt Portfolio of the Northern Institutional Funds of $1, $15, $5 and $2, respectively. |
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 4 | NORTHERN FUNDS SEMIANNUAL REPORT |
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SIX MONTHS ENDED SEPTEMBER 30, 2014 (UNAUDITED) |
CALIFORNIA TAX-EXEMPT FUND | HIGH YIELD MUNICIPAL FUND | INTERMEDIATE TAX-EXEMPT FUND | SHORT- INTERMEDIATE TAX-EXEMPT FUND | TAX-EXEMPT FUND | ||||||||||||||
$2,383 | $6,656 | $29,713 | $12,357 | $15,408 | ||||||||||||||
1 | (1) | 1 | (2) | 15 | (2) | 5 | (2) | 2 | (2) | |||||||||
2,384 | 6,657 | 29,728 | 12,362 | 15,410 | ||||||||||||||
140 | 499 | 2,657 | 1,487 | 836 | ||||||||||||||
167 | 398 | 3,190 | 1,640 | 1,026 | ||||||||||||||
46 | 92 | 888 | 492 | 280 | ||||||||||||||
13 | 19 | 132 | 75 | 47 | ||||||||||||||
8 | 11 | 64 | 38 | 23 | ||||||||||||||
35 | 71 | 686 | 380 | 216 | ||||||||||||||
6 | 12 | 19 | 17 | 14 | ||||||||||||||
9 | 9 | 26 | 17 | 12 | ||||||||||||||
9 | 9 | 14 | 12 | 9 | ||||||||||||||
8 | 8 | 14 | 11 | 8 | ||||||||||||||
48 | 19 | 424 | 33 | 65 | ||||||||||||||
9 | 9 | 30 | 18 | 12 | ||||||||||||||
6 | 5 | 14 | 10 | 7 | ||||||||||||||
504 | 1,161 | 8,158 | 4,230 | 2,555 | ||||||||||||||
(216 | ) | (147 | ) | (2,668 | ) | (1,188 | ) | (834 | ) | |||||||||
288 | 1,014 | 5,490 | 3,042 | 1,721 | ||||||||||||||
2,096 | 5,643 | 24,238 | 9,320 | 13,689 | ||||||||||||||
1,271 | 44 | 19,559 | 530 | 10,440 | ||||||||||||||
3,502 | 9,157 | 26,753 | 2,326 | 10,358 | ||||||||||||||
4,773 | 9,201 | 46,312 | 2,856 | 20,798 | ||||||||||||||
$6,869 | $14,844 | $70,550 | $12,176 | $34,487 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 5 | TAX-EXEMPT FIXED INCOME FUNDS |
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TAX-EXEMPT FIXED INCOME FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
ARIZONA TAX-EXEMPT FUND | CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND | |||||||||||||||
Amounts in thousands | SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | ||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $1,423 | $3,317 | $5,121 | $11,134 | ||||||||||||
Net realized gains (losses) | 590 | (453 | ) | 3,798 | (5,341 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) | 1,146 | (4,058 | ) | 5,210 | (5,920 | ) | ||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 3,159 | (1,194 | ) | 14,129 | (127 | ) | ||||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | 7,723 | (37,095 | ) | 29,596 | (40,886 | ) | ||||||||||
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions | 7,723 | (37,095 | ) | 29,596 | (40,886 | ) | ||||||||||
DISTRIBUTIONS PAID: | ||||||||||||||||
From net investment income | (1,423 | ) | (3,317 | ) | (5,121 | ) | (11,134 | ) | ||||||||
From net realized gains | – | (319 | ) | – | (524 | ) | ||||||||||
Total Distributions Paid | (1,423 | ) | (3,636 | ) | (5,121 | ) | (11,658 | ) | ||||||||
Total Increase (Decrease) in Net Assets | 9,459 | (41,925 | ) | 38,604 | (52,671 | ) | ||||||||||
NET ASSETS: | ||||||||||||||||
Beginning of period | 78,914 | 120,839 | 359,151 | 411,822 | ||||||||||||
End of period | $88,373 | $78,914 | $397,755 | $359,151 | ||||||||||||
Accumulated Undistributed Net Investment Loss | $(10 | ) | $(10 | ) | $(4 | ) | $(4 | ) |
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 6 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2014 (UNAUDITED) |
OR THE FISCAL YEAR ENDED MARCH 31, 2014
CALIFORNIA TAX-EXEMPT FUND | HIGH YIELD MUNICIPAL FUND | INTERMEDIATE TAX-EXEMPT FUND | SHORT- INTERMEDIATE TAX-EXEMPT FUND | TAX-EXEMPT FUND | ||||||||||||||||||||||||||||||||||
SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | |||||||||||||||||||||||||||||
$2,096 | $4,793 | $5,643 | $12,880 | $24,238 | $55,611 | $9,320 | $17,834 | $13,689 | $34,282 | |||||||||||||||||||||||||||||
1,271 | (2,733 | ) | 44 | 2,669 | 19,559 | (16,777 | ) | 530 | (1,106 | ) | 10,440 | (27,976 | ) | |||||||||||||||||||||||||
3,502 | (2,693 | ) | 9,157 | (22,378 | ) | 26,753 | (38,856 | ) | 2,326 | (12,652 | ) | 10,358 | (20,047 | ) | ||||||||||||||||||||||||
6,869 | (633 | ) | 14,844 | (6,829 | ) | 70,550 | (22 | ) | 12,176 | 4,076 | 34,487 | (13,741 | ) | |||||||||||||||||||||||||
3,847 | (36,796 | ) | 13,231 | (66,884 | ) | 71,657 | (101,843 | ) | 76,392 | 164,794 | 8,758 | (368,329 | ) | |||||||||||||||||||||||||
3,847 | (36,796 | ) | 13,231 | (66,884 | ) | 71,657 | (101,843 | ) | 76,392 | 164,794 | 8,758 | (368,329 | ) | |||||||||||||||||||||||||
(2,097 | ) | (4,793 | ) | (5,643 | ) | (12,880 | ) | (24,238 | ) | (55,611 | ) | (9,320 | ) | (17,834 | ) | (13,689 | ) | (34,282 | ) | |||||||||||||||||||
– | (2,251 | ) | – | – | – | (10,357 | ) | – | (285 | ) | – | (11,466 | ) | |||||||||||||||||||||||||
(2,097 | ) | (7,044 | ) | (5,643 | ) | (12,880 | ) | (24,238 | ) | (65,968 | ) | (9,320 | ) | (18,119 | ) | (13,689 | ) | (45,748 | ) | |||||||||||||||||||
8,619 | (44,473 | ) | 22,432 | (86,593 | ) | 117,969 | (167,833 | ) | 79,248 | 150,751 | 29,556 | (427,818 | ) | |||||||||||||||||||||||||
119,640 | 164,113 | 240,728 | 327,321 | 2,369,509 | 2,537,342 | 1,329,074 | 1,178,323 | 746,780 | 1,174,598 | |||||||||||||||||||||||||||||
$128,259 | $119,640 | $263,160 | $240,728 | $2,487,478 | $2,369,509 | $1,408,322 | $1,329,074 | $776,336 | $746,780 | |||||||||||||||||||||||||||||
$(2 | ) | $(1 | ) | $– | $– | $(201 | ) | $(201 | ) | $(289 | ) | $(289 | ) | $(256 | ) | $(256 | ) |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 7 | TAX-EXEMPT FIXED INCOME FUNDS |
Table of Contents
TAX-EXEMPT FIXED INCOME FUNDS
FINANCIAL HIGHLIGHTS
ARIZONA TAX-EXEMPT FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS SEPT. 30, | YEAR ENDED MARCH 31, 2014 | YEAR ENDED MARCH 31, 2013 | YEAR ENDED MARCH 31, 2012 | YEAR ENDED MARCH 31, 2011 | YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $10.66 | $11.03 | $10.91 | $10.08 | $10.34 | $9.92 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.19 | 0.36 | 0.35 | 0.36 | 0.36 | 0.38 | ||||||||||||||||||
Net realized and unrealized gains (losses) | 0.23 | (0.33 | ) | 0.26 | 0.87 | (0.23 | ) | 0.42 | ||||||||||||||||
Total from Investment Operations | 0.42 | 0.03 | 0.61 | 1.23 | 0.13 | 0.80 | ||||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income | (0.19 | ) | (0.36 | ) | (0.35 | ) | (0.36 | ) | (0.36 | ) | (0.38 | ) | ||||||||||||
From net realized gains | – | (0.04 | ) | (0.14 | ) | (0.04 | ) | (0.03 | ) | – | ||||||||||||||
Total Distributions Paid | (0.19 | ) | (0.40 | ) | (0.49 | ) | (0.40 | ) | (0.39 | ) | (0.38 | ) | ||||||||||||
Net Asset Value, End of Period | $10.89 | $10.66 | $11.03 | $10.91 | $10.08 | $10.34 | ||||||||||||||||||
Total Return(1) | 3.92 | % | 0.41 | % | 5.63 | % | 12.30 | % | 1.23 | % | 8.11 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $88,373 | $78,914 | $120,839 | $116,616 | $101,318 | $102,059 | ||||||||||||||||||
Ratio to average net assets of:(2) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 0.46 | %(3) | 0.45 | %(3) | 0.45 | %(3) | 0.67 | %(3) | 0.74 | %(3) | 0.75 | % | ||||||||||||
Expenses, before reimbursements and credits | 0.80 | % | 0.96 | % | 0.93 | % | 0.94 | % | 0.94 | % | 0.93 | % | ||||||||||||
Net investment income, net of reimbursements and credits | 3.41 | %(3) | 3.38 | %(3) | 3.16 | %(3) | 3.34 | %(3) | 3.49 | %(3) | 3.66 | % | ||||||||||||
Net investment income, before reimbursements and credits | 3.07 | % | 2.87 | % | 2.68 | % | 3.07 | % | 3.29 | % | 3.48 | % | ||||||||||||
Portfolio Turnover Rate | 33.98 | % | 30.69 | % | 34.54 | % | 50.48 | % | 48.37 | % | 31.71 | % |
(1) | 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. Total return is not annualized for periods less than one year. |
(2) | Annualized for periods less than one year. |
(3) | 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 less than $1,000, which represents less than 0.005 percent of average net assets for the six months ended September 30, 2014, less than $1,000 and approximately $2,000, $2,000 and $7,000, which represent 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, 2014, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 8 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS ENDED SEPT. 30, 2014 | YEAR ENDED MARCH 31, 2014 | YEAR ENDED MARCH 31, 2013 | YEAR ENDED MARCH 31, 2012 | YEAR ENDED MARCH 31, 2011 | YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $10.57 | $10.84 | $10.74 | $10.04 | $10.15 | $9.79 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.15 | 0.30 | 0.32 | 0.34 | 0.32 | 0.32 | ||||||||||||||||||
Net realized and unrealized gains (losses) | 0.26 | (0.25 | ) | 0.23 | 0.70 | (0.07 | ) | 0.36 | ||||||||||||||||
Total from Investment Operations | 0.41 | 0.05 | 0.55 | 1.04 | 0.25 | 0.68 | ||||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income | (0.15 | ) | (0.30 | ) | (0.33 | ) | (0.34 | ) | (0.32 | ) | (0.32 | ) | ||||||||||||
From net realized gains | – | (0.02 | ) | (0.12 | ) | – | (0.04 | ) | – | |||||||||||||||
Total Distributions Paid | (0.15 | ) | (0.32 | ) | (0.45 | ) | (0.34 | ) | (0.36 | ) | (0.32 | ) | ||||||||||||
Net Asset Value, End of Period | $10.83 | $10.57 | $10.84 | $10.74 | $10.04 | $10.15 | ||||||||||||||||||
Total Return(1) | 3.85 | % | 0.54 | % | 5.17 | % | 10.56 | % | 2.36 | % | 7.01 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $397,755 | $359,151 | $411,822 | $345,391 | $290,815 | $265,784 | ||||||||||||||||||
Ratio to average net assets of:(2) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 0.45 | %(3) | 0.45 | %(3) | 0.45 | %(3) | 0.67 | %(3) | 0.74 | %(3)(4) | 0.75 | % | ||||||||||||
Expenses, before reimbursements and credits | 0.67 | % | 0.86 | % | 0.86 | % | 0.85 | % | 0.86 | % | 0.86 | % | ||||||||||||
Net investment income, net of reimbursements and credits | 2.70 | %(3) | 2.90 | %(3) | 2.92 | %(3) | 3.20 | %(3) | 3.11 | %(3) | 3.17 | % | ||||||||||||
Net investment income, before reimbursements and credits | 2.48 | % | 2.49 | % | 2.51 | % | 3.02 | % | 2.99 | % | 3.06 | % | ||||||||||||
Portfolio Turnover Rate | 53.66 | % | 98.76 | % | 55.59 | % | 53.21 | % | 54.12 | % | 33.12 | % |
(1) | 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. Total return is not annualized for periods less than one year. |
(2) | Annualized for periods less than one year. |
(3) | 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 less than $1,000, which represents less than 0.005 percent of average net assets for the six months ended September 30, 2014, and approximately $3,000, $6,000, $3,000 and $16,000, which represent 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, 2014, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
(4) | The net expense ratio includes custodian credits of approximately $1,000, which represents less than 0.01 percent of average net assets for the fiscal year ended March 31, 2011. Absent the custodian credit arrangement, expense reimbursement would have been increased by a corresponding amount. |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 9 | TAX-EXEMPT FIXED INCOME FUNDS |
Table of Contents
TAX-EXEMPT FIXED INCOME FUNDS
FINANCIAL HIGHLIGHTS continued
CALIFORNIA TAX-EXEMPT FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS SEPT. 30, | YEAR ENDED MARCH 31, 2014 | YEAR ENDED MARCH 31, 2013 | YEAR ENDED MARCH 31, 2012 | YEAR ENDED MARCH 31, 2011 | YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $11.26 | $11.78 | $11.57 | $10.35 | $10.80 | $10.19 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.19 | 0.40 | 0.35 | 0.37 | 0.43 | 0.43 | ||||||||||||||||||
Net realized and unrealized gains (losses) | 0.44 | (0.31 | ) | 0.53 | 1.31 | (0.27 | ) | 0.61 | ||||||||||||||||
Total from Investment Operations | 0.63 | 0.09 | 0.88 | 1.68 | 0.16 | 1.04 | ||||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income | (0.19 | ) | (0.40 | ) | (0.35 | ) | (0.37 | ) | (0.43 | ) | (0.43 | ) | ||||||||||||
From net realized gains | – | (0.21 | ) | (0.32 | ) | (0.09 | ) | (0.18 | ) | – | (1) | |||||||||||||
Total Distributions Paid | (0.19 | ) | (0.61 | ) | (0.67 | ) | (0.46 | ) | (0.61 | ) | (0.43 | ) | ||||||||||||
Net Asset Value, End of Period | $11.70 | $11.26 | $11.78 | $11.57 | $10.35 | $10.80 | ||||||||||||||||||
Total Return(2) | 5.65 | % | 0.97 | % | 7.73 | % | 16.38 | % | 1.44 | % | 10.38 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $128,259 | $119,640 | $164,113 | $149,252 | $114,389 | $156,222 | ||||||||||||||||||
Ratio to average net assets of:(3) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 0.46 | %(4) | 0.45 | %(4) | 0.45 | %(4) | 0.66 | %(4) | 0.74 | %(4)(5) | 0.75 | % | ||||||||||||
Expenses, before reimbursements and credits | 0.80 | % | 0.99 | % | 0.97 | % | 0.99 | % | 0.97 | % | 0.93 | % | ||||||||||||
Net investment income, net of reimbursements and credits | 3.33 | %(4) | 3.55 | %(4) | 2.93 | %(4) | 3.25 | %(4) | 3.94 | %(4) | 4.06 | % | ||||||||||||
Net investment income, before reimbursements and credits | 2.99 | % | 3.01 | % | 2.41 | % | 2.92 | % | 3.71 | % | 3.88 | % | ||||||||||||
Portfolio Turnover Rate | 106.69 | % | 150.19 | % | 145.22 | % | 201.67 | % | 144.16 | % | 91.62 | % |
(1) | Per share amounts from distributions from net realized gains were less than $0.01 per share. |
(2) | 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. Total return is not annualized for periods less than one year. |
(3) | Annualized for periods less than one year. |
(4) | 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 less than $1,000, which represents less than 0.005 percent of average net assets for the six months ended September 30, 2014, and approximately $1,000, $6,000, $3,000 and $8,000, which represent 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, 2014, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
(5) | The net expense ratio includes custodian credits of approximately $1,000, which represents less than 0.01 percent of average net assets for the fiscal year ended March 31, 2011. Absent the custodian credit arrangement, expense reimbursement would have been increased by a corresponding amount. |
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 10 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
HIGH YIELD MUNICIPAL FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS SEPT. 30, | YEAR ENDED MARCH 31, 2014 | YEAR ENDED MARCH 31, 2013 | YEAR ENDED MARCH 31, 2012 | YEAR ENDED MARCH 31, 2011 | YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $8.49 | $9.04 | $8.66 | $7.77 | $8.10 | $7.23 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.20 | 0.40 | 0.40 | 0.37 | 0.35 | 0.34 | ||||||||||||||||||
Net realized and unrealized gains (losses) | 0.32 | (0.55 | ) | 0.38 | 0.89 | (0.33 | ) | 0.87 | ||||||||||||||||
Total from Investment Operations | 0.52 | (0.15 | ) | 0.78 | 1.26 | 0.02 | 1.21 | |||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income | (0.20 | ) | (0.40 | ) | (0.40 | ) | (0.37 | ) | (0.35 | ) | (0.34 | ) | ||||||||||||
Total Distributions Paid | (0.20 | ) | (0.40 | ) | (0.40 | ) | (0.37 | ) | (0.35 | ) | (0.34 | ) | ||||||||||||
Net Asset Value, End of Period | $8.81 | $8.49 | $9.04 | $8.66 | $7.77 | $8.10 | ||||||||||||||||||
Total Return(1) | 6.11 | % | (1.51 | )% | 9.10 | % | 16.57 | % | 0.10 | % | 16.90 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $263,160 | $240,728 | $327,321 | $398,856 | $826,418 | $799,779 | ||||||||||||||||||
Ratio to average net assets of:(2) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 0.80 | %(3) | 0.80 | %(3) | 0.80 | %(3) | 0.84 | %(3) | 0.84 | %(3) | 0.85 | % | ||||||||||||
Expenses, before reimbursements and credits | 0.92 | % | 0.98 | % | 0.97 | % | 0.94 | % | 0.94 | % | 0.95 | % | ||||||||||||
Net investment income, net of reimbursements and credits | 4.48 | %(3) | 4.73 | %(3) | 4.42 | %(3) | 4.50 | %(3) | 4.25 | %(3) | 4.24 | % | ||||||||||||
Net investment income, before reimbursements and credits | 4.36 | % | 4.55 | % | 4.25 | % | 4.40 | % | 4.15 | % | 4.14 | % | ||||||||||||
Portfolio Turnover Rate | 3.86 | % | 10.66 | % | 6.29 | % | 9.19 | % | 25.00 | % | 12.45 | % |
(1) | 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. Total return is not annualized for periods less than one year. |
(2) | Annualized for periods less than one year. |
(3) | 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 less than $1,000, which represents less than 0.005 percent of average net assets for the six months ended September 30, 2014, and approximately $1,000, $2,000, $18,000 and $102,000, which represents 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, 2014, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 11 | TAX-EXEMPT FIXED INCOME FUNDS |
Table of Contents
TAX-EXEMPT FIXED INCOME FUNDS
FINANCIAL HIGHLIGHTS continued
INTERMEDIATE TAX-EXEMPT FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS ENDED SEPT. 30, 2014 (UNAUDITED) | YEAR ENDED MARCH 31, 2014 | YEAR ENDED MARCH 31, 2013 | YEAR ENDED MARCH 31, 2012 | YEAR ENDED MARCH 31, 2011 | YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $10.44 | $10.70 | $10.69 | $9.95 | $10.30 | $10.01 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.11 | 0.23 | 0.23 | 0.25 | 0.28 | 0.31 | ||||||||||||||||||
Net realized and unrealized gains (losses) | 0.21 | (0.21 | ) | 0.23 | 0.76 | (0.18 | ) | 0.37 | ||||||||||||||||
Total from Investment Operations | 0.32 | 0.02 | 0.46 | 1.01 | 0.10 | 0.68 | ||||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income | (0.11 | ) | (0.23 | ) | (0.23 | ) | (0.25 | ) | (0.28 | ) | (0.31 | ) | ||||||||||||
From net realized gains | – | (0.05 | ) | (0.22 | ) | (0.02 | ) | (0.17 | ) | (0.08 | ) | |||||||||||||
Total Distributions Paid | (0.11 | ) | (0.28 | ) | (0.45 | ) | (0.27 | ) | (0.45 | ) | (0.39 | ) | ||||||||||||
Net Asset Value, End of Period | $10.65 | $10.44 | $10.70 | $10.69 | $9.95 | $10.30 | ||||||||||||||||||
Total Return(1) | 3.03 | % | 0.26 | % | 4.33 | % | 10.26 | % | 0.98 | % | 6.94 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $2,487,478 | $2,369,509 | $2,537,342 | $2,294,633 | $1,691,614 | $1,646,105 | ||||||||||||||||||
Ratio to average net assets of:(2) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 0.45 | %(3) | 0.44 | %(3) | 0.43 | %(3) | 0.64 | %(3) | 0.72 | %(3) | 0.75 | % | ||||||||||||
Expenses, before reimbursements and credits | 0.67 | % | 0.85 | % | 0.86 | % | 0.85 | % | 0.86 | % | 0.86 | % | ||||||||||||
Net investment income, net of reimbursements and credits | 1.99 | %(3) | 2.27 | %(3) | 2.10 | %(3) | 2.40 | %(3) | 2.70 | %(3) | 2.98 | % | ||||||||||||
Net investment income, before reimbursements and credits | 1.77 | % | 1.86 | % | 1.67 | % | 2.19 | % | 2.56 | % | 2.87 | % | ||||||||||||
Portfolio Turnover Rate | 57.10 | % | 107.28 | % | 109.82 | % | 135.53 | % | 105.88 | % | 111.53 | % |
(1) | 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. Total return is not annualized for periods less than one year. |
(2) | Annualized for periods less than one year. |
(3) | 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 $6,000, which represents less than 0.005 percent of average net assets for the six months ended September 30, 2014, and approximately $38,000, $170,000, $242,000 and $522,000, which represent less than 0.005, 0.01, 0.01 and 0.03 percent of average net assets for the fiscal years ended March 31, 2014, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 12 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SHORT-INTERMEDIATE TAX-EXEMPT FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS ENDED SEPT. 30, 2014 (UNAUDITED) | YEAR ENDED MARCH 31, 2014 | YEAR ENDED MARCH 31, 2013 | YEAR ENDED MARCH 31, 2012 | YEAR ENDED MARCH 31, 2011 | YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $10.46 | $10.58 | $10.65 | $10.48 | $10.49 | $10.33 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.07 | 0.15 | 0.17 | 0.16 | 0.14 | 0.18 | ||||||||||||||||||
Net realized and unrealized gains (losses) | 0.03 | (0.12 | ) | (0.03 | ) | 0.17 | (0.01 | ) | 0.16 | |||||||||||||||
Total from Investment Operations | 0.10 | 0.03 | 0.14 | 0.33 | 0.13 | 0.34 | ||||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income | (0.07 | ) | (0.15 | ) | (0.19 | ) | (0.16 | ) | (0.14 | ) | (0.18 | ) | ||||||||||||
From net realized gains | – | – | (1) | (0.02 | ) | – | – | (1) | – | (1) | ||||||||||||||
Total Distributions Paid | (0.07 | ) | (0.15 | ) | (0.21 | ) | (0.16 | ) | (0.14 | ) | (0.18 | ) | ||||||||||||
Net Asset Value, End of Period | $10.49 | $10.46 | $10.58 | $10.65 | $10.48 | $10.49 | ||||||||||||||||||
Total Return(2) | 0.98 | % | 0.33 | % | 1.27 | % | 3.18 | % | 1.21 | % | 3.29 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $1,408,322 | $1,329,074 | $1,178,323 | $1,112,988 | $1,413,570 | $1,319,330 | ||||||||||||||||||
Ratio to average net assets of:(3) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 0.45 | %(4) | 0.45 | %(4) | 0.45 | %(4) | 0.64 | %(4) | 0.66 | %(4) | 0.70 | % | ||||||||||||
Expenses, before reimbursements and credits | 0.63 | % | 0.79 | % | 0.79 | % | 0.79 | % | 0.79 | % | 0.79 | % | ||||||||||||
Net investment income, net of reimbursements and credits | 1.38 | %(4) | 1.45 | %(4) | 1.58 | %(4) | 1.50 | %(4) | 1.28 | %(4) | 1.63 | % | ||||||||||||
Net investment income, before reimbursements and credits | 1.20 | % | 1.11 | % | 1.24 | % | 1.35 | % | 1.15 | % | 1.54 | % | ||||||||||||
Portfolio Turnover Rate | 12.61 | % | 20.44 | % | 16.14 | % | 16.47 | % | 17.72 | % | 10.07 | % |
(1) | Per share amount from distributions paid from net realized gains was less than $0.01 per share. |
(2) | 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. Total return is not annualized for periods less than one year. |
(3) | Annualized for periods less than one year. |
(4) | 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 0.005 percent of average net assets for the six months ended September 30, 2014, and approximately $13,000, $28,000, $117,000 and $547,000, which represent less than 0.005, less than 0.005, 0.01 and 0.04 percent of average net assets for the fiscal years ended March 2014, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 13 | TAX-EXEMPT FIXED INCOME FUNDS |
Table of Contents
TAX-EXEMPT FIXED INCOME FUNDS
FINANCIAL HIGHLIGHTS continued
TAX-EXEMPT FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS SEPT. 30, | YEAR ENDED MARCH 31, 2014 | YEAR ENDED MARCH 31, 2013 | YEAR ENDED MARCH 31, 2012 | YEAR ENDED MARCH 31, 2011 | YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $10.44 | $10.95 | $10.92 | $9.95 | $10.55 | $10.03 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.19 | 0.38 | 0.32 | 0.36 | 0.39 | 0.40 | ||||||||||||||||||
Net realized and unrealized gains (losses) | 0.29 | (0.37 | ) | 0.31 | 0.97 | (0.41 | ) | 0.53 | ||||||||||||||||
Total from Investment Operations | 0.48 | 0.01 | 0.63 | 1.33 | (0.02 | ) | 0.93 | |||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income | (0.19 | ) | (0.38 | ) | (0.32 | ) | (0.36 | ) | (0.39 | ) | (0.40 | ) | ||||||||||||
From net realized gains | – | (0.14 | ) | (0.28 | ) | – | (0.19 | ) | (0.01 | ) | ||||||||||||||
Total Distributions Paid | (0.19 | ) | (0.52 | ) | (0.60 | ) | (0.36 | ) | (0.58 | ) | (0.41 | ) | ||||||||||||
Net Asset Value, End of Period | $10.73 | $10.44 | $10.95 | $10.92 | $9.95 | $10.55 | ||||||||||||||||||
Total Return(1) | 4.64 | % | 0.30 | % | 5.85 | % | 13.55 | % | (0.26 | )% | 9.38 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $776,336 | $746,780 | $1,174,598 | $1,154,365 | $932,820 | $1,069,787 | ||||||||||||||||||
Ratio to average net assets of:(2) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 0.45 | %(3) | 0.45 | %(3) | 0.45 | %(3) | 0.66 | %(3) | 0.74 | %(3) | 0.75 | % | ||||||||||||
Expenses, before reimbursements and credits | 0.67 | % | 0.86 | % | 0.85 | % | 0.85 | % | 0.86 | % | 0.85 | % | ||||||||||||
Net investment income, net of reimbursements and credits | 3.59 | %(3) | 3.62 | %(3) | 2.85 | %(3) | 3.40 | %(3) | 3.70 | %(3) | 3.83 | % | ||||||||||||
Net investment income, before reimbursements and credits |
| 3.37 | % | 3.21 | % | 2.45 | % | 3.21 | % | 3.58 | % | 3.73 | % | |||||||||||
Portfolio Turnover Rate | 88.30 | % | 129.73 | % | 167.86 | % | 174.06 | % | 116.83 | % | 122.57 | % |
(1) | 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. Total return is not annualized for periods less than one year. |
(2) | Annualized for periods less than one year. |
(3) | 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 0.005 percent of average net assets for the six months ended September 30, 2014, and approximately $13,000, $63,000, $67,000 and $115,000, which represent less than 0.005, 0.01, 0.01 and 0.01 percent of average net assets for the fiscal years ended March 31, 2014, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 14 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
ARIZONA TAX-EXEMPT FUND | SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 96.6% | ||||||||
Arizona – 96.6% | ||||||||
Arizona Board of Regents University System Revenue Bonds, Series A, | $500 | $576 | ||||||
Arizona Board of Regents University System Revenue Refunding Bonds, | 500 | 597 | ||||||
Arizona State School Facilities Board COPS, | 2,000 | 2,293 | ||||||
Arizona State Transportation Board Highway Revenue Bonds, Series B, | 1,000 | 1,131 | ||||||
Arizona State University System Revenue Refunding Bonds (AMBAC Insured), | 1,450 | 1,498 | ||||||
Bullhead City Municipal Property Corp. Excise TRB (NATL-RE Insured), Prerefunded, | 1,000 | 1,037 | ||||||
Coconino & Yavapai Counties Joint Unified School District No. 9 G.O. Unlimited Bonds, Series B, School Improvement Project of 2007 (Assured Guaranty Insured), | 1,345 | 1,532 | ||||||
Gilbert Public Facilities Municipal Property Corp. Revenue Bonds, | 1,000 | 1,158 | ||||||
Glendale Water & Sewer Revenue Bonds, Sub Lien (AGM Insured), | 2,000 | 2,232 | ||||||
Goodyear Public Improvement Corp. Municipal Facilities Revenue Bonds, | 1,000 | 1,148 | ||||||
Goodyear Public Improvement Corp. Municipal Facilities Revenue Bonds, Series A (NATL-RE Insured), | 1,000 | 1,107 | ||||||
Goodyear Water & Sewer Revenue Bonds, Sub Lien Obligations (AGM Insured), | 1,000 | 1,109 | ||||||
Greater Development Authority Infrastructure Revenue Bonds, Series 2, Santa Cruz County Jail, | 2,000 | 2,119 | ||||||
5.25%, 8/1/31 | 1,005 | 1,077 | ||||||
Marana Municipal Property Corp. Facilities Revenue Bonds, Series A, 5.25%, 7/1/23 | 1,970 | 2,237 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 96.6% – continued | ||||||||
Arizona – 96.6% – continued | ||||||||
Maricopa County Elementary School District No. 1 Phoenix G.O. Unlimited Bonds, Series B, School Improvement Project of 2006, | $1,190 | $1,315 | ||||||
Maricopa County Elementary School District No. 28 Kyrene G.O. Unlimited Bonds, Series B, School Improvement Project of 2010, | 940 | 1,063 | ||||||
1.00%, 7/1/29 | 485 | 558 | ||||||
1.00%, 7/1/30 | 375 | 432 | ||||||
Maricopa County Elementary School District No. 8 Osborn G.O. Unlimited Bonds, Series B, School Improvement Project of 2006, | 80 | 83 | ||||||
Maricopa County High School District No. 210 Phoenix G.O. Unlimited Bonds, Series C, School Improvement, | 1,725 | 1,887 | ||||||
Maricopa County High School District No. 210 Phoenix G.O. Unlimited Refunding Bonds (AGM Insured), | 225 | 262 | ||||||
Maricopa County Unified School District No. 60 Higley G.O. Unlimited Bonds, Series C, School Improvement Project of 2006, | 1,000 | 1,118 | ||||||
Maricopa County Unified School District No. 69 Paradise Valley G.O. Unlimited Bonds, Series D, School Improvement Project of 2011, | 1,700 | 1,932 | ||||||
Maricopa County Unified School District No. 80 Chandler G.O. Unlimited Bonds, School Improvement, | 175 | 198 | ||||||
Maricopa County Unified School District No. 80 Chandler G.O. Unlimited Bonds, Series A-1, School Improvement Project of 2010, | 1,040 | 1,154 | ||||||
Maricopa County Unified School District No. 80 Chandler G.O. Unlimited Bonds, Series C, School Improvement Project 2010, | 750 | 842 | ||||||
4.00%, 7/1/27 | 425 | 469 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 15 | TAX-EXEMPT FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
ARIZONA TAX-EXEMPT FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 96.6% – continued | ||||||||
Arizona – 96.6% – continued | ||||||||
Maricopa County Unified School District No. 89 Dysart G.O. Unlimited Bonds, Series B, School Improvement Project of 2006 (AMBAC Insured), | $500 | $541 | ||||||
Mesa Street & Highway Revenue Refunding Bonds (AGM Insured), | 1,000 | 1,204 | ||||||
Mesa Utility System Revenue Refunding Bonds, | 1,000 | 988 | ||||||
3.00%, 7/1/28 (1) | 4,000 | 3,906 | ||||||
3.25%, 7/1/29 (1) | 2,000 | 1,966 | ||||||
Mohave County Unified School District No. 20 Kingman G.O. Unlimited Bonds, Series C, School Improvement Project of 2006 (Assured Guaranty Insured), | 1,000 | 1,176 | ||||||
5.00%, 7/1/23 | 1,000 | 1,150 | ||||||
Northern University Research Projects COPS (AMBAC Insured), | 400 | 407 | ||||||
Phoenix Civic Improvement Corp. Airport Revenue Bonds, Series B (AMT), Senior Lien, | 1,000 | 1,084 | ||||||
Phoenix Civic Improvement Corp. Wastewater System Revenue Refunding Bonds, Senior Lien, | 1,690 | 1,967 | ||||||
5.50%, 7/1/21 | 1,080 | 1,255 | ||||||
Phoenix Civic Improvement Corp. Water System Revenue Bonds, Series A, Junior Lien, | 530 | 593 | ||||||
Pima County Sewer Revenue Bonds, Series B, | 1,000 | 1,148 | ||||||
Pima County Sewer System Revenue Bonds (AGM Insured), | 1,350 | 1,550 | ||||||
Pima County Sewer System Revenue Bonds, | 1,000 | 1,187 | ||||||
Pima County Street & Highway Revenue Bonds, | 1,970 | 2,142 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 96.6% – continued | ||||||||
Arizona – 96.6% – continued | ||||||||
Pima County Unified School District No. 10 Amphitheater G.O. Unlimited Bonds, Series D, School Improvement Project of 2007, 5.00%, 7/1/24 | $1,005 | $1,174 | ||||||
Pinal County Unified School District No. 43 Apache Junction G.O. Unlimited Refunding Bonds (AGM Insured), | 1,000 | 1,199 | ||||||
Prescott Valley Municipal Property Corp. Facilities Revenue Refunding Bonds, | 1,835 | 2,063 | ||||||
Rio Nuevo Multi-Purpose Facilities District Excise TRB, Sub Lien (Assured Guaranty Insured), | 1,000 | 1,082 | ||||||
Salt River Project Agricultural Improvement & Power District Electric Revenue Bonds, Series A, | 1,000 | 1,043 | ||||||
5.00%, 1/1/39 | 1,225 | 1,376 | ||||||
Scottsdale Municipal Property Corp. Excise Tax Revenue Refunding Bonds, | 2,675 | 3,273 | ||||||
Student & Academic Services LLC Northern Arizona Capital Facilities Lease Revenue Bonds (BAM Insured), | 250 | 294 | ||||||
5.00%, 6/1/25 | 300 | 353 | ||||||
5.00%, 6/1/26 | 200 | 233 | ||||||
5.00%, 6/1/29 | 635 | 727 | ||||||
5.00%, 6/1/32 | 925 | 1,041 | ||||||
Tucson Airport Authority, Inc. Revenue Bonds (AMT), Sub Lien (NATL-RE Insured), | 1,135 | 1,223 | ||||||
Tucson COPS (Assured Guaranty Insured), | 1,000 | 1,092 | ||||||
5.00%, 7/1/29 | 1,000 | 1,080 | ||||||
Tucson G.O. Unlimited Bonds, Series A, | 1,000 | 1,113 | ||||||
Tucson G.O. Unlimited Bonds, Series B, | 1,000 | 1,225 | ||||||
Tucson Water System Revenue Bonds, | 1,825 | 2,119 | ||||||
Tucson Water System Revenue Bonds, Series 2005-B (AGM Insured), | 1,590 | 1,757 |
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 16 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED)
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 96.6% – continued | ||||||||
Arizona – 96.6% – continued | ||||||||
Western Maricopa Education Center District No. 402 G.O. Unlimited Bonds, Series B, School Improvement | $1,000 | $998 | ||||||
4.50%, 7/1/33 | 3,000 | 3,309 | ||||||
Yuma County Library District G.O. Unlimited Bonds (XLCA Insured), | 1,000 | 1,103 | ||||||
5.00%, 7/1/28 | 1,945 | 2,122 | ||||||
85,427 | ||||||||
Total Municipal Bonds | ||||||||
(Cost $79,162) | 85,427 | |||||||
NUMBER OF SHARES | VALUE (000s) | |||||||
INVESTMENT COMPANIES – 10.3% | ||||||||
Northern Institutional Funds - Tax-Exempt Portfolio, 0.01% (2)(3) | 9,081,243 | $9,081 | ||||||
Total Investment Companies | ||||||||
(Cost $9,081) | 9,081 | |||||||
Total Investments – 106.9% | ||||||||
(Cost $88,243) | 94,508 | |||||||
Liabilities less Other Assets – (6.9)% | (6,135 | ) | ||||||
NET ASSETS – 100.0% | $88,373 |
(1) | When-Issued Security. |
(2) | At March 31, 2014, the value of the Fund’s investment in the Tax-Exempt Portfolio of the Northern Institutional Funds was approximately $2,191,000 with net purchases of approximately $6,890,000 during the six months ended September 30, 2014. |
(3) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
Percentages shown are based on Net Assets.
At September 30, 2014, the credit quality distribution for the Fund as a percentage of investments including cash was:
QUALITY DISTRIBUTION* | % OF INVESTMENTS | |||
AAA | 3.4% | |||
AA | 70.1 | |||
A | 16.9 | |||
Cash and Equivalents | 9.6 | |||
Total | 100.0% |
* Credit quality ratings are based on converting the available Moody’s, Standard & Poor’s, and/or Fitch ratings to a common numerical basis and averaging that result. If none of these three rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). The Standard & Poor’s short-term municipal rating of SP1 reflects a strong capacity to pay principal and interest (an issue determined to possess a very strong capacity to pay debt service is given a plus (+) designation). The Moody’s short-term municipal rating of MIG1 denotes superior credit quality (excellent protection is afforded by established cash flows, highly reliable liquidity support or demonstrated broad-based access to the market for refinancing). The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.
At September 30, 2014, the industry sectors for the Fund were:
INDUSTRY SECTOR | % OF INVESTMENTS | |||
Facilities | 5.6% | |||
Financials | 9.6 | |||
General | 20.9 | |||
General Obligation | 5.9 | |||
School District | 19.1 | |||
Utilities | 11.3 | |||
Water | 11.7 | |||
All other sectors less than 5% | 15.9 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 17 | TAX-EXEMPT FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
ARIZONA TAX-EXEMPT FUND continued | SEPTEMBER 30, 2014 (UNAUDITED) |
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Municipal Bonds | $– | $85,427 | (1) | $– | $85,427 | |||||||||||
Investment Companies | 9,081 | – | – | 9,081 | ||||||||||||
Total Investments | $9,081 | $85,427 | $– | $94,508 |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 18 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND | SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 94.6% | ||||||||
California – 94.6% | ||||||||
Alameda County Joint Powers Authority Lease Revenue Bonds, Series A, Multiple Capital Projects, | $850 | $951 | ||||||
Anaheim Public Financing Authority Electric System District Facilities Revenue Bonds (NATL-RE Insured), | 3,500 | 3,659 | ||||||
Bay Area Toll Bridge Authority Variable Revenue Bonds, Series B, | 3,000 | 3,034 | ||||||
Bay Area Toll Bridge Authority Variable Revenue Bonds, Series C, | 2,000 | 2,039 | ||||||
Cabrillo Community College District G.O. Unlimited Bonds, Series A (NATL-RE Insured), Partially Prerefunded, | 535 | 537 | ||||||
California State Department of Water Resources Center Valley Project Revenue Bonds, Series AR, | 1,795 | 1,906 | ||||||
California State Department of Water Resources Supply Revenue Bonds, Series L, | 5,000 | 5,897 | ||||||
California State Economic Recovery G.O. Unlimited Refunding Bonds, Series A, | 5,000 | 5,916 | ||||||
California State G.O. Unlimited Refunding Bonds, Series B, | 3,375 | 4,100 | ||||||
California State G.O. Unlimited Bonds, | 8,500 | 9,678 | ||||||
California State G.O. Unlimited Bonds, Series 2007, Unrefunded Balance (FGIC Insured), Partially Prerefunded, | 2,220 | 2,239 | ||||||
California State G.O. Unlimited Bonds, Unrefunded Balance (NATL Insured), | 85 | 85 | ||||||
California State Infrastructure & Economic Development Bank Revenue Bonds, Series A, Scripps Research Institute, | 1,000 | 1,004 | ||||||
California State Public Works Board Lease Revenue Bonds, Series D, Department of Justice, | 1,000 | 1,004 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 94.6% – continued | ||||||||
California – 94.6% – continued | ||||||||
California State Public Works Board Lease Revenue Bonds, Series D, Judicial Council Projects, | $1,000 | $1,154 | ||||||
California State Public Works Board Lease Revenue Bonds, | 2,500 | 3,080 | ||||||
California State Public Works Board Lease Revenue Refunding Bonds, Series A, Trustees California State University, | 3,545 | 3,545 | ||||||
California State Public Works Board Lease Revenue Refunding Bonds, Series H, Department of Corrections & Rehabilitation, | 2,000 | 2,063 | ||||||
California State Public Works Board Lease Revenue Refunding Bonds, Series J, Department of Corrections & Rehabilitation (AMBAC Insured), | 1,300 | 1,376 | ||||||
California State Sutter Health Facilities Financing Authority Revenue Bonds, Series A, | 3,000 | 3,212 | ||||||
California State University Systemwide Revenue Bonds, Series A, | 6,000 | 7,296 | ||||||
California State University Systemwide Revenue Bonds, Series C (NATL-RE Insured), Prerefunded, | 865 | 910 | ||||||
California State University Systemwide Revenue Bonds, Series C (NATL-RE Insured), Unrefunded Balance, | 310 | 324 | ||||||
California State Various Purpose G.O. Unlimited Bonds, | 2,980 | 3,446 | ||||||
5.50%, 4/1/19 | 1,000 | 1,190 | ||||||
5.00%, 9/1/19 | 4,720 | 5,566 | ||||||
5.00%, 10/1/19 | 2,990 | 3,532 | ||||||
3.00%, Mandatory Put 12/1/19 (1) | 5,000 | 5,346 | ||||||
5.00%, 9/1/20 | 1,690 | 2,022 | ||||||
5.00%, 10/1/20 | 6,000 | 7,190 | ||||||
5.00%, 10/1/20 (1) | 5,000 | 5,991 | ||||||
5.50%, 4/1/21 | 2,000 | 2,389 | ||||||
4.75%, 6/1/22 | 2,500 | 2,519 | ||||||
5.00%, 10/1/22 | 500 | 605 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 19 | TAX-EXEMPT FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 94.6% – continued | ||||||||
California – 94.6% – continued | ||||||||
5.00%, 10/1/23 (1) | $500 | $608 | ||||||
5.00%, 12/1/23 | 5,000 | 6,084 | ||||||
5.25%, 3/1/30 | 1,500 | 1,723 | ||||||
5.00%, 8/1/35 | 3,225 | 3,329 | ||||||
5.00%, 11/1/43 | 2,620 | 2,937 | ||||||
California State Various Purpose G.O. Unlimited Refunding Bonds, | 1,500 | 1,789 | ||||||
5.00%, 10/1/26 (1) | 5,000 | 6,033 | ||||||
Carlsbad Unified School District G.O. Unlimited CABS, | 1,250 | 1,156 | ||||||
Centinela Valley Union High School District G.O. Unlimited Bonds, Series B, Election of 2008, | 1,000 | 1,234 | ||||||
Chaffey Community College District G.O. Unlimited Refunding Bonds, Series A, | 1,800 | 2,199 | ||||||
5.00%, 6/1/26 (1) | 2,615 | 3,155 | ||||||
Chula Vista Industrial Development Revenue Refunding Bonds, Series A, San Diego Gas & Electric, | 5,000 | 5,035 | ||||||
Contra Costa Community College District G.O. Unlimited Refunding Bonds, | 1,250 | 1,523 | ||||||
Desert Community College District G.O. Unlimited Bonds, Series C (AGM Insured), | 4,250 | 4,652 | ||||||
East Bay Municipal Utility District Water System Revenue Refunding Bonds, Series B, | 1,745 | 2,135 | ||||||
5.00%, 6/1/24 | 1,075 | 1,344 | ||||||
Eastern Municipal District Water & Sewer COPS, Series H, | 2,000 | 2,242 | ||||||
El Camino Community College District G.O. Unlimited CABS, Series C, Election of 2002, | 1,085 | 1,022 | ||||||
3.03%, 8/1/23 (2) | 9,940 | 7,910 | ||||||
El Dorado Irrigation District COPS, Series A (Assured Guaranty Insured), | 1,915 | 2,116 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 94.6% – continued | ||||||||
California – 94.6% – continued | ||||||||
Foothill Eastern Transportation Corridor Agency Toll Road Revenue CABS, Series A, Senior Lien, Escrowed to Maturity, | $2,150 | $2,016 | ||||||
Fremont Union High School District Santa Clara County G.O. Unlimited Bonds, Series A, Election of 2008, | 1,500 | 1,709 | ||||||
Long Beach Unified School District G.O. Unlimited Bonds, Series A, Election of 2008, | 1,075 | 1,268 | ||||||
Los Altos School District G.O. Unlimited Refunding Bonds (AMBAC Insured), Unrefunded Balance, | 1,160 | 1,257 | ||||||
Los Angeles Community College District G.O. Unlimited Refunding Bonds, | 1,890 | 2,303 | ||||||
Los Angeles Department of International Airports Revenue Bonds, Senior Series D, | 3,500 | 3,949 | ||||||
Los Angeles Department of International Airports Revenue Bonds, Series D, | 1,395 | 1,654 | ||||||
5.25%, 5/15/29 | 5,000 | 5,853 | ||||||
Los Angeles Department of Water & Power System Revenue Bonds, Subseries A-1, | 2,825 | 3,192 | ||||||
Los Angeles Department of Water & Power System Revenue Bonds, Subseries A-1 (AMBAC Insured), | 2,490 | 2,736 | ||||||
Los Angeles Harbor Department Revenue Refunding Bonds, Series A (AMT), | 1,500 | 1,744 | ||||||
5.00%, 8/1/21 | 2,800 | 3,326 | ||||||
5.00%, 8/1/22 | 2,975 | 3,545 | ||||||
5.00%, 8/1/23 | 5,990 | 7,169 | ||||||
5.00%, 8/1/24 | 1,475 | 1,770 | ||||||
Los Angeles Harbor Department Revenue Refunding Bonds, Series B, | 2,015 | 2,399 | ||||||
Los Angeles Municipal Improvement Corp. Real Property Lease Revenue Bonds, Series A, | 780 | 900 |
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 20 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 94.6% – continued | ||||||||
California – 94.6% – continued | ||||||||
Los Angeles Municipal Improvement Corp. Real Property Lease Revenue Refunding Bonds, Series B, | $655 | $756 | ||||||
Los Angeles Unified School District G.O. Unlimited Refunding Bonds, Series B, | 4,000 | 4,859 | ||||||
5.00%, 7/1/23 | 7,500 | 9,164 | ||||||
Los Angeles Unified School District G.O. Unlimited Refunding Bonds, Series C, | 5,000 | 6,109 | ||||||
5.00%, 7/1/24 | 4,000 | 4,931 | ||||||
Los Angeles Wastewater System Revenue Refunding Bonds, Series A (NATL Insured), | 1,185 | 1,514 | ||||||
Los Angeles Wastewater System Revenue Refunding Bonds, Subseries C, | 1,935 | 2,358 | ||||||
Marin County COPS, | 1,595 | 1,688 | ||||||
4.00%, 8/1/23 | 1,140 | 1,245 | ||||||
Menlo Park City School District Crossover G.O. Unlimited Refunding Bonds, Series 2018, | 1,000 | 1,038 | ||||||
Midpeninsula Regional Open Space District Revenue Bonds, | 2,000 | 2,305 | ||||||
Modesto Irrigation District Electric Revenue Refunding Bonds, Series A, | 1,230 | 1,390 | ||||||
Modesto Irrigation District Financing Authority Revenue Refunding Bonds, Series G, Domestic Water Project (AGM Insured), | 1,000 | 1,180 | ||||||
5.00%, 9/1/22 | 1,445 | 1,714 | ||||||
Modesto Wastewater Revenue Refunding Bonds, Series A (AGM Insured), | 1,000 | 1,054 | ||||||
Mojave Water Agency COPS, Series A, | 665 | 759 | ||||||
Northern California Power Agency Revenue Bonds, Series A, | 1,500 | 1,729 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 94.6% – continued | ||||||||
California – 94.6% – continued | ||||||||
Orange County Transportation Authority Toll Road Revenue Refunding Bonds, Senior Lien, 91 Express Lanes, | $1,000 | $1,183 | ||||||
Pasadena Unified School District G.O. Unlimited Refunding Bonds (AGM Insured), Prerefunded, | 2,500 | 2,682 | ||||||
5.00%, 11/1/15 | 2,275 | 2,440 | ||||||
Pomona Valley Educational School District Joint Powers Authority Lease Revenue Refunding Bonds (BAM Insured), | 1,000 | 1,159 | ||||||
5.00%, 8/1/21 | 1,010 | 1,172 | ||||||
Poway Unified School District No. 07-1 Improvement G.O. Unlimited Bonds, Series A, Election of 2008, | 3,280 | 2,925 | ||||||
Redlands Unified School District G.O. Unlimited Bonds, Election of 2008 (AGM Insured), | 150 | 170 | ||||||
5.00%, 7/1/29 | 1,000 | 1,134 | ||||||
Riverside County Asset Leasing Corp. Revenue Bonds, Series A, Pub Defender & Probation Building, | 800 | 960 | ||||||
Riverside Public Financing Authority Local Measure A Sales Tax Revenue COPS, Riverside Payment Rehabilitation (AGM Insured), | 615 | 725 | ||||||
Sacramento County Airport System Senior Revenue Bonds, | 1,500 | 1,705 | ||||||
Sacramento Municipal Utility District Revenue Bonds, Series U (AGM Insured), | 1,000 | 1,155 | ||||||
5.00%, 8/15/25 | 2,000 | 2,282 | ||||||
Sacramento Municipal Utility District Revenue Refunding Bonds, Series X, | 1,950 | 2,340 | ||||||
San Bernardino City Unified School District G.O. Unlimited Refunding Bonds (AGM Insured), | 885 | 1,059 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 21 | TAX-EXEMPT FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 94.6% – continued | ||||||||
California – 94.6% – continued | ||||||||
San Diego Public Facilities Financing Authority Lease Revenue Refunding Bonds, Series A, Master Refunding Project, | $1,150 | $1,273 | ||||||
4.25%, 3/1/20 | 1,130 | 1,268 | ||||||
San Diego Public Facilities Financing Authority Sewer Revenue Bonds, Senior Series A, | 1,495 | 1,665 | ||||||
San Diego Public Facilities Financing Authority Sewer Revenue Refunding Bonds, Senior Series B, | 5,000 | 5,925 | ||||||
San Diego Regional Building Authority Revenue Bonds, Series A, County Operations Center & Annex, | 3,615 | 4,020 | ||||||
San Diego Unified School District G.O. Unlimited Refunding Bonds, Series E-2, Election of 1998 (AGM Insured), | 1,500 | 1,943 | ||||||
San Dieguito Union High School District G.O. Unlimited Bonds, Series A-2, Election of 2012, | 1,000 | 1,036 | ||||||
San Francisco Bay Area Toll Authority Bridge Revenue Bonds, Series F-1, | 2,000 | 2,268 | ||||||
San Francisco Bay Area Toll Bridge Authority Revenue Bonds, | 1,000 | 1,184 | ||||||
San Francisco City & County Airports Commission Revenue Refunding Bonds, Second Series C (AGM Insured), | 1,875 | 2,090 | ||||||
San Francisco City & County G.O. Unlimited Refunding Bonds, Series R1, | 3,000 | 3,603 | ||||||
San Francisco City & County International Airports Commission Revenue Refunding Bonds, Second Series A (AMT), | 1,095 | 1,269 | ||||||
San Francisco City & County Public Utilities Commission Water Revenue Bonds, | 2,000 | 2,054 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 94.6% – continued | ||||||||
California – 94.6% – continued | ||||||||
San Francisco City & County Public Utilities Commission Water Revenue Bonds, Subseries A, WSIP, | $2,000 | $2,410 | ||||||
San Francisco City & County Unified School District Property G.O. Unlimited Bonds, Series E, Election of 2006, | 2,615 | 3,124 | ||||||
San Joaquin County Transportation Authority Measure K Limited TRB, Series A, | 2,000 | 2,426 | ||||||
San Jose Airport Revenue Refunding Bonds, Series A (AMT), | 2,865 | 3,337 | ||||||
5.00%, 3/1/22 (1) | 1,300 | 1,521 | ||||||
San Jose Unified School District Santa Clara County G.O. Unlimited Refunding Bonds, | 1,000 | 1,187 | ||||||
San Juan Unified School District G.O. Unlimited Bonds, Series B, Election 2012, | 3,285 | 3,504 | ||||||
3.00%, 8/1/24 | 2,835 | 3,011 | ||||||
3.00%, 8/1/25 | 3,895 | 4,029 | ||||||
San Mateo County Transit District Tax Revenue Refunding Bonds, Series A (NATL-RE Insured), | 3,785 | 3,883 | ||||||
San Mateo Sewer Revenue Bonds, Series A, | 1,140 | 1,417 | ||||||
San Mateo Union High School District G.O. Unlimited Capital Appreciation BANS, Escrowed to Maturity, | 1,000 | 999 | ||||||
San Ramon Valley Unified School District G.O. Unlimited Refunding Bonds, | 1,000 | 1,149 | ||||||
Santa Ana Unified School District G.O. Unlimited Bonds, Series A, Election of 2008, | 2,000 | 2,294 | ||||||
Santa Clara Unified School District G.O. Unlimited Bonds, Election of 2010, | 2,000 | 2,155 |
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 22 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 94.6% – continued | ||||||||
California – 94.6% – continued | ||||||||
Santa Clara Unified School District G.O. Unlimited Bonds, Series A, Election of 2004, | $1,500 | $1,682 | ||||||
5.00%, 7/1/30 | 4,040 | 4,507 | ||||||
5.00%, 7/1/34 | 1,000 | 1,104 | ||||||
Santa Clara Valley Water District Refunding & Improvement COPS, Series A, | 1,500 | 1,723 | ||||||
Santa Rosa Wastewater Revenue Bonds, Series A (AGM Insured), | 1,255 | 1,378 | ||||||
Sequoia Union High School District G.O. Unlimited Bonds, Series C-1, Election of 2008, | 2,000 | 2,412 | ||||||
South Orange County Public Financing Authority Special Tax Refunding Bonds, Series A, Foothill Area (NATL Insured), | 2,500 | 2,510 | ||||||
Southern California Public Power Authority Revenue Bonds, Milford Wind Corridor Project 1, | 1,240 | 1,464 | ||||||
Southern California Public Power Authority Revenue Bonds, Windy Point/Windy Flats Project 1, | 2,500 | 2,915 | ||||||
Stockton Unified School District G.O. Unlimited Refunding Bonds, Series A (BAM Insured), | 325 | 382 | ||||||
5.00%, 8/1/27 | 425 | 493 | ||||||
Turlock Irrigation District First Priority Subordinated Revenue Refunding Bonds, | 450 | 534 | ||||||
5.00%, 1/1/28 | 625 | 735 | ||||||
5.00%, 1/1/31 | 875 | 1,015 | ||||||
Val Verde Unified School District G.O. Unlimited Bonds, Series A, Election of 2008, | 2,125 | 2,413 | ||||||
Ventura County Community College District G.O. Unlimited Bonds, Series C, Election of 2002, | 1,000 | 1,156 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 94.6% – continued | ||||||||
California – 94.6% – continued | ||||||||
Ventura County Community College District G.O. Unlimited CABS, Series C, Election of 2002, | $1,615 | $1,561 | ||||||
4.28%, 8/1/18 (2) | 1,635 | 1,547 | ||||||
Ventura County Public Financing Authority Lease Revenue Bonds, Series B, | 1,060 | 1,272 | ||||||
West Valley-Mission Community College District G.O. Unlimited CABS, Series B, | 1,115 | 1,107 | ||||||
Western Riverside County Trust & Wastewater Finance Authority Revenue Bonds, Western Municipal Water District Improvement Project (Assured Guaranty Insured), | 1,645 | 1,788 | ||||||
376,447 | ||||||||
Total Municipal Bonds | ||||||||
(Cost $354,866) | 376,447 |
NUMBER OF SHARES | VALUE (000s) | |||||||
INVESTMENT COMPANIES –12.0% | ||||||||
Northern Funds - California Municipal Money Market Fund, 0.01% (3)(4) | 47,733,508 | $47,734 | ||||||
Total Investment Companies | ||||||||
(Cost $47,734) | 47,734 | |||||||
Total Investments – 106.6% | ||||||||
(Cost $402,600) | 424,181 | |||||||
Liabilities less Other Assets – (6.6)% | (26,426 | ) | ||||||
NET ASSETS – 100.0% | $397,755 |
(1) | When-Issued Security. |
(2) | Zero coupon bond reflects effective yield on the date of purchase. |
(3) | Investment in affiliated Fund. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the California Municipal Money Market Fund. |
(4) | At March 31, 2014, the value of the Fund’s investment in the California Municipal Money Market Fund of the Northern Funds was approximately $16,474,000 with net purchases of $31,260,000 during the six months ended September 30, 2014. |
Percentages shown are based on Net Assets.
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 23 | TAX-EXEMPT FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND continued | SEPTEMBER 30, 2014 (UNAUDITED) |
At September 30, 2014, the credit quality distribution for the Fund as a percentage of investments was:
QUALITY DISTRIBUTION* | % OF INVESTMENTS | |||
AAA | 0.5% | |||
AA | 60.7 | |||
A | 27.3 | |||
A1+ | 0.2 | |||
Cash and Equivalents | 11 | |||
Total | 100.0% |
* Credit quality ratings are based on converting the available Moody’s, Standard & Poor’s, and/or Fitch ratings to a common numerical basis and averaging that result. If none of these three rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). The Standard & Poor’s short-term municipal rating of SP1 reflects a strong capacity to pay principal and interest (an issue determined to possess a very strong capacity to pay debt service is given a plus (+) designation). The Moody’s short-term municipal rating of MIG1 denotes superior credit quality (excellent protection is afforded by established cash flows, highly reliable liquidity support or demonstrated broad-based access to the market for refinancing). The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.
At September 30, 2014, the industry sectors for the Fund were:
INDUSTRY SECTOR | % OF INVESTMENTS | |||
Airport | 5.0% | |||
Financials | 11.3 | |||
General Obligation | 25.0 | |||
Higher Education | 5.3 | |||
Power | 5.6 | |||
School District | 19.0 | |||
Transportation | 7.5 | |||
Water | 6.6 | |||
All other sectors less than 5% | 14.7 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Municipal Bonds | $– | $376,447 | (1) | $– | $376,447 | |||||||||||
Investment Companies | 47,734 | – | – | 47,734 | ||||||||||||
Total Investments | $47,734 | $376,447 | $– | $424,181 |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 24 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
CALIFORNIA TAX-EXEMPT FUND | SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 98.0% | ||||||||
California – 98.0% | ||||||||
Alhambra Unified School District Elementary Schools Improvement G.O. Unlimited Bonds, Series A, Election of 2008 (Assured Guaranty Insured), | $1,000 | $1,150 | ||||||
Anaheim Public Financing Authority Electric System District Facilities Revenue Bonds (NATL-RE Insured), | 1,500 | 1,568 | ||||||
Bay Area Toll Bridge Authority Variable Revenue Bonds, Series C, | 3,000 | 3,059 | ||||||
Brentwood Infrastructure Financing Authority Water Revenue Bonds, | 3,595 | 4,065 | ||||||
Cabrillo Community College District G.O. Unlimited Bonds, Series A (NATL-RE Insured), Partially Prerefunded, | 540 | 542 | ||||||
California State G.O. Unlimited Refunding Bonds, | 5,000 | 5,983 | ||||||
California State Infrastructure & Economic Development Bank Revenue Bonds, Series A, Scripps Research Institute, | 250 | 251 | ||||||
California State Public Works Board Lease Revenue Bonds, Series A, Department of General Services-Buildings 8 & 9, | 1,400 | 1,679 | ||||||
California State Public Works Board Lease Revenue Refunding Bonds, Series B, Various Community College Project (AMBAC Insured), | 920 | 924 | ||||||
California State Various Purpose G.O. Unlimited Bonds, | 5,000 | 5,991 | ||||||
5.00%, 10/1/20 (1) | 5,000 | 5,991 | ||||||
5.25%, 3/1/30 | 3,500 | 4,021 | ||||||
5.00%, 8/1/35 | 1,000 | 1,032 | ||||||
5.50%, 3/1/40 | 2,865 | 3,284 | ||||||
5.00%, 10/1/44 (1) | 650 | 733 | ||||||
California State Various Purpose G.O. Unlimited Refunding Bonds, | 5,000 | 5,916 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 98.0% – continued | ||||||||
California – 98.0% – continued | ||||||||
Centinela Valley Union High School District G.O. Unlimited Bonds, Series B, Election of 2008, | $570 | $693 | ||||||
6.00%, 8/1/36 | 1,000 | 1,220 | ||||||
Chabot-Las Positas Community College District G.O. Unlimited Bonds, Series B, Election of 2004 (AMBAC Insured), | 850 | 914 | ||||||
Corona-Norco Unified School District G.O. Unlimited Bonds, Series C, Election of 2006 (AGM Insured), | 500 | 585 | ||||||
Desert Community College District G.O. Unlimited Bonds, Series C (AGM Insured), | 705 | 772 | ||||||
Fremont Union High School District Santa Clara County G.O. Unlimited Bonds, Series A, Election of 2008, | 3,500 | 3,987 | ||||||
Los Angeles County Regional Financing Authority Insured Revenue Bonds, Series A, Montecedro, Inc. Project (California Mortgage Insured), | 1,000 | 1,088 | ||||||
Los Angeles Department of International Airports Revenue Bonds, Senior Series D, | 1,500 | 1,692 | ||||||
Los Angeles Department of Water & Power System Revenue Bonds, Subseries A-1 (AMBAC Insured), | 1,000 | 1,099 | ||||||
Los Angeles Harbor Department Revenue Bonds, Escrowed to Maturity, | 20 | 23 | ||||||
Los Angeles Harbor Department Revenue Refunding Bonds, Series A (AMT), | 1,655 | 1,971 | ||||||
5.00%, 8/1/26 | 1,230 | 1,461 | ||||||
5.00%, 8/1/27 | 1,000 | 1,184 | ||||||
Los Angeles Municipal Improvement Corp. Real Property Lease Revenue Refunding Bonds, Series B, | 790 | 906 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 25 | TAX-EXEMPT FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
CALIFORNIA TAX-EXEMPT FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 98.0% – continued | ||||||||
California – 98.0% – continued | ||||||||
Los Angeles Unified School District G.O. Unlimited Refunding Bonds, Series B, | $1,670 | $2,029 | ||||||
Los Angeles Unified School District G.O. Unlimited Refunding Bonds, Series C, | 1,720 | 2,102 | ||||||
5.00%, 7/1/24 | 1,000 | 1,233 | ||||||
Marin County COPS, | 1,575 | 1,646 | ||||||
Menlo Park City School District G.O. Unlimited 2018 Crossover Refunding Bonds, | 2,000 | 2,075 | ||||||
Midpeninsula Regional Open Space District Revenue Bonds, | 600 | 691 | ||||||
5.50%, 9/1/41 | 2,500 | 2,936 | ||||||
Modesto Irrigation District Capital Improvements COPS, Series A, | 1,500 | 1,735 | ||||||
6.00%, 10/1/39 | 2,000 | 2,315 | ||||||
Newport Mesa Unified School District G.O. Unlimited CABS, Election of 2005, | 10,000 | 4,831 | ||||||
Palomar Pomerado Health G.O. Unlimited Convertible CABS, Series A, Election of 2004 (Assured Guaranty Insured), | 5,000 | 4,686 | ||||||
Rio Hondo Community College District G.O. Unlimited Bonds, Series B, Election of 2009, | 1,605 | 1,877 | ||||||
Sacramento Municipal Utility District Revenue Bonds, Series A, | 55 | 63 | ||||||
San Diego County Water Authority COPS, Series 2008 A (AGM Insured), | 2,000 | 2,228 | ||||||
San Diego Public Facilities Financing Authority Sewer Revenue Bonds, Senior Series A, | 1,500 | 1,731 | ||||||
San Dieguito Union High School District G.O. Unlimited Bonds, Series A-2, Election of 2012, | 950 | 984 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 98.0% – continued | ||||||||
California – 98.0% – continued | ||||||||
San Francisco Bay Area Toll Bridge Authority Revenue Bonds, Series F-1, | $3,650 | $4,139 | ||||||
San Francisco Bay Area Toll Bridge Authority Revenue Bonds, Series F-1, Prerefunded, | 1,500 | 1,775 | ||||||
San Francisco City & County Airports Commision International Airport Revenue Bonds, Series A (AMT), | 2,000 | 2,212 | ||||||
San Joaquin County Transportation Authority Measure K Limited TRB, Series A, | 2,075 | 2,404 | ||||||
San Mateo County Transit District Tax Revenue Refunding Bonds, Series A (NATL-RE Insured), | 1,000 | 1,026 | ||||||
Santa Clara Electric Revenue Refunding Bonds, Series A, | 1,195 | 1,449 | ||||||
Santa Rosa Wastewater Revenue Refunding Bonds, Series A (NATL Insured), | 20 | 22 | ||||||
Sequoia Union High School District G.O. Unlimited Bonds, Series C-1, Election of 2008, | 2,025 | 2,442 | ||||||
Southern California State Public Power Authority Revenue Bonds, Series B, Southern Transmission Project, | 2,520 | 2,982 | ||||||
Torrance Hospital Revenue Bonds, Series A, Torrance Memorial Medical Center, | 500 | 502 | ||||||
Val Verde Unified School District G.O. Unlimited Bonds, Series A, Election of 2008, | 2,500 | 2,839 | ||||||
Ventura County Community College District G.O. Unlimited Bonds, | 4,065 | 4,699 |
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 26 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 98.0% – continued | ||||||||
California – 98.0% – continued | ||||||||
Western Riverside County Trust & Wastewater Finance Authority Revenue Bonds, Western Municipal Water District Improvement Project (Assured Guaranty Insured), | $2,000 | $2,174 | ||||||
125,611 | ||||||||
Total Municipal Bonds | ||||||||
(Cost $111,975) | 125,611 | |||||||
NUMBER OF SHARES | VALUE (000s) | |||||||
INVESTMENT COMPANIES – 9.3% | ||||||||
Northern Funds – California Municipal Money Market Fund, 0.01% (3) (4) | 11,956,770 | $11,957 | ||||||
Total Investment Companies | ||||||||
(Cost $11,957) | 11,957 | |||||||
Total Investments – 107.3% | ||||||||
(Cost $123,932) | 137,568 | |||||||
Liabilities less Other Assets – (7.3)% | (9,309 | ) | ||||||
NET ASSETS – 100.0% | $128,259 |
(1) | When-Issued Security. |
(2) | Zero coupon bond reflects effective yield on the date of purchase. (3) At March 31, 2014, the value of the Fund’s investment in the California Municipal Money Market Fund of the Northern Funds was approximately $10,143,000 with net purchases of approximately $1,814,000 during the six months ended September 30, 2014. |
(4) | Investment in affiliated Fund. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the California Municipal Money Market Fund. |
Percentages shown are based on Net Assets.
At September 30, 2014, the credit quality distribution for the Fund as a percentage of investments including cash was:
QUALITY DISTRIBUTION* | % OF INVESTMENTS | |||
AA | 50.5% | |||
A | 40.8 | |||
Cash and Equivalents | 8.7 | |||
Total | 100.0% |
* Credit quality ratings are based on converting the available Moody’s, Standard & Poor’s, and/or Fitch ratings to a common numerical basis and averaging that result. If none of these three rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). The Standard & Poor’s short-term municipal rating of SP1 reflects a strong capacity to pay principal and interest (an issue determined to possess a very strong capacity to pay debt service is given a plus (+) designation). The Moody’s short-term municipal rating of MIG1 denotes superior credit quality (excellent protection is afforded by established cash flows, highly reliable liquidity support or demonstrated broad-based access to the market for refinancing). The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.
At September 30, 2014, the industry sectors for the Fund were:
INDUSTRY SECTOR | % OF INVESTMENTS | |||
General Obligation | 33.8% | |||
School District | 19.0 | |||
Transportation | 9.9 | |||
General | 8.9 | |||
Financials | 8.7 | |||
All other sectors less than 5% | 19.7 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Municipal Bonds | $– | $125,611 | (1) | $– | $125,611 | |||||||||||
Investment Companies | 11,957 | – | – | 11,957 | ||||||||||||
Total Investments | $11,957 | $125,611 | $– | $137,568 |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 27 | TAX-EXEMPT FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
HIGH YIELD MUNICIPAL FUND
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 95.1% | ||||||||
Alabama – 2.2% |
| |||||||
Alabama State Port Authority Docks Facilities Revenue Bonds, | $5,000 | $5,717 | ||||||
Arizona – 2.8% |
| |||||||
Maricopa County Pollution Control Corp. Variable Revenue Refunding Bonds, Series A, Public Service Co. of New Mexico, Palo Verde Project, | 4,000 | 4,422 | ||||||
Pima County IDA Revenue Bonds, Tucson Electric Power Co., | 3,000 | 3,026 | ||||||
7,448 | ||||||||
California – 9.3% |
| |||||||
California State Municipal Finance Authority COPS Revenue Bonds, Community Hospitals of Central California, | 4,000 | 4,262 | ||||||
California State Municipal Finance Authority Revenue Bonds, Series A, University of La Verne, | 2,000 | 2,337 | ||||||
6.25%, 6/1/40 | 1,000 | 1,147 | ||||||
California Statewide Communities Development Authority Revenue Bonds, California Baptist University, | 2,000 | 2,386 | ||||||
California Statewide Communities Development Authority Revenue Bonds, Series A, California Baptist University, | 2,000 | 2,021 | ||||||
Golden State Tobacco Securitization Corp. Tobacco Settlement Asset Backed Revenue Bonds, Senior Series A-1, | 2,000 | 1,465 | ||||||
5.75%, 6/1/47 | 2,000 | 1,590 | ||||||
San Francisco City & County Airports Commission Revenue Bonds, Series E, | 5,000 | 5,921 | ||||||
Tobacco Securitization Authority of Southern California Tobacco Settlement Revenue Bonds, Senior Series A1, | 4,000 | 3,233 | ||||||
24,362 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 95.1% – continued | ||||||||
Colorado – 3.7% |
| |||||||
Denver City & County Airport System Revenue Bonds, Series A, | $4,000 | $4,454 | ||||||
Prairie Center Metropolitan District No. 3 Limited Property Tax Supported G.O. Limited Bonds, Series A, | 2,000 | 2,067 | ||||||
Regional Transportation District Private Activity Revenue Bonds, Denver Transportation Partners, | 3,000 | 3,343 | ||||||
9,864 | ||||||||
Connecticut – 1.1% |
| |||||||
Connecticut State Health & Educational Facilities Authority Revenue Bonds, Series G, Sacred Heart University, | 1,250 | 1,389 | ||||||
5.38%, 7/1/31 | 1,250 | 1,395 | ||||||
2,784 | ||||||||
Delaware – 0.9% |
| |||||||
Delaware State EDA Gas Facilities Revenue Refunding Bonds, Delmarva Power, | 2,000 | 2,246 | ||||||
District of Columbia – 3.1% |
| |||||||
District of Columbia Revenue Bonds, Cesar Chavez Charter Schools, | 5,265 | 6,154 | ||||||
Metropolitan Washington Airports Authority Dulles Toll Road Revenue Refunding Bonds, Series A, Dulles Metrorail and Capital Project, | 2,000 | 2,098 | ||||||
8,252 | ||||||||
Florida – 4.1% |
| |||||||
Broward County Airport Exempt Facility Revenue Bonds (AMT), Learjet, Inc. Project, | 5,430 | 5,509 | ||||||
Capital Trust Agency Air Cargo Revenue Refunding Bonds, Series A, Aero Miami FX, | 3,655 | 4,032 | ||||||
Jacksonville Economic Development Commission Health Care Facilities Revenue Refunding Bonds, Series A, Proton Therapy Institute, | 1,170 | 1,261 |
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 28 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 95.1% – continued | ||||||||
Florida – 4.1% – continued | ||||||||
Sterling Hill Community Development District Capital Improvement Special Assessment Revenue Bonds, Series B, | $155 | $ – | ||||||
10,802 | ||||||||
Georgia – 2.3% | ||||||||
Atlanta Water & Wastewater Revenue Bonds, Series A, | 5,000 | 5,920 | ||||||
Illinois – 4.8% | ||||||||
Illinois State Finance Authority Revenue Bonds, Series A, Provena Health, | 3,500 | 4,390 | ||||||
Illinois State Finance Authority Revenue Bonds, Series A, Three Crowns Park Plaza, | 2,500 | 2,514 | ||||||
Illinois State Finance Authority Revenue Bonds, Silver Cross & Medical Centers, | 1,000 | 1,150 | ||||||
7.00%, 8/15/44 | 1,000 | 1,150 | ||||||
Railsplitter Tobacco Settlement Authority Revenue Bonds, | 1,000 | 1,169 | ||||||
6.00%, 6/1/28 | 2,000 | 2,331 | ||||||
12,704 | ||||||||
Indiana – 5.4% | ||||||||
Indiana State Finance Authority Educational Facilities Revenue Bonds, Marian University Project, | 3,000 | 3,414 | ||||||
6.38%, 9/15/41 | 2,000 | 2,202 | ||||||
Indiana State Finance Authority Environmental Variable Revenue Bonds, Series B, Duke Energy Project, | 2,000 | 2,231 | ||||||
Indiana State Municipal Power Agency Revenue Bonds, Series B, | 2,000 | 2,262 | ||||||
North Manchester Economic Development Revenue Refunding Bonds, Series A, Peabody Retirement Community Project, | 389 | 176 | ||||||
North Manchester Economic Development Revenue Refunding Bonds, Subseries B, Peabody Retirement Community Project, | 335 | 7 |
PRINCIPAL AMOUNT (000s) | VALUE (000S) | |||||||
MUNICIPAL BONDS – 95.1% – continued | ||||||||
Indiana – 5.4% – continued | ||||||||
Vigo County Hospital Authority Revenue Bonds, Union Hospital, Inc., | $1,000 | $1,009 | ||||||
8.00%, 9/1/41 | 2,500 | 2,889 | ||||||
14,190 | ||||||||
Kentucky – 1.1% | ||||||||
Kentucky Public Transportation Infrastructure Authority First Tier Toll Revenue Bonds, Series A, Downtown Crossing Project, | 2,500 | 2,826 | ||||||
Louisiana – 5.7% | ||||||||
Louisiana State Gas & Fuels TRB, Series B, Second Lien, | 5,000 | 5,570 | ||||||
Louisiana State Local Government Environmental Facilities & Community Development Authority Revenue Bonds, Series A, Westlake Chemical Corp., | 2,000 | 2,353 | ||||||
Louisiana State Local Government Environmental Facilities & Community Development Authority Revenue Bonds, Series A, Woman’s Hospital Foundation, | 3,000 | 3,431 | ||||||
Louisiana State Local Government Environmental Facilities & Community Development Authority Revenue Bonds, Series A-1, Westlake Chemical Corp., | 2,000 | 2,336 | ||||||
Louisiana State Public Facilities Authority Revenue Bonds, Belle Chasse Educational Foundation Project, | 1,250 | 1,404 | ||||||
15,094 | ||||||||
Maine – 1.7% | ||||||||
Maine State Health & Higher Educational Facilities Authority Revenue Bonds, Maine General Medical Center, | 2,000 | 2,352 | ||||||
6.75%, 7/1/41 | 2,000 | 2,198 | ||||||
4,550 | ||||||||
Maryland – 3.3% | ||||||||
Anne Arundel County Special Obligation Tax Allocation Bonds, National Business Park-North Project, | 4,335 | 4,629 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 29 | TAX-EXEMPT FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
HIGH YIELD MUNICIPAL FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 95.1% – continued | ||||||||
Maryland – 3.3% – continued | ||||||||
Maryland State Health & Higher Educational Facilities Authority Revenue Bonds, Series A, Adventist Healthcare, | $1,500 | $1,747 | ||||||
6.13%, 1/1/36 | 2,000 | 2,275 | ||||||
8,651 | ||||||||
Massachusetts –2.4% | ||||||||
Massachusetts State Bay Transportation Authority Sales TRB, Senior Series A, | 5,000 | 6,215 | ||||||
Michigan – 1.8% | ||||||||
Michigan State Finance Authority Revenue Refunding Bonds, Series D-4, Local Government Loan Program, Detroit Water & Sewerage Department, | 2,000 | 2,162 | ||||||
Royal Oak Hospital Finance Authority Revenue Bonds, William Beaumont Hospital, Prerefunded, | 2,000 | 2,566 | ||||||
4,728 | ||||||||
Minnesota – 2.3% | ||||||||
Rochester Health Care & Housing Revenue Refunding Bonds, Series A, Samaritan Bethany, | 3,000 | 3,339 | ||||||
Western Minnesota Municipal Power Agency Revenue Bonds, Series A, | 2,500 | 2,823 | ||||||
6,162 | ||||||||
Mississippi – 1.1% | ||||||||
Warren County Gulf Opportunity Zone Revenue Bonds, Series A, International Paper Co., | 2,530 | 2,894 | ||||||
Missouri – 2.9% | ||||||||
Grundy County IDA Health Facilities Revenue Bonds, Wright Memorial Hospital, | 2,530 | 2,751 | ||||||
6.75%, 9/1/34 | 1,750 | 1,910 | ||||||
St. Louis County IDA Senior Living Facilities Revenue Bonds, Series A, St. Andrews Resources for Seniors, | 3,005 | 3,066 | ||||||
7,727 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 95.1% – continued | ||||||||
New Jersey – 4.4% | ||||||||
New Jersey State Economic Development Authority Special Facility Revenue Bonds, Series B (AMT), Continental Airlines, Inc. Project, | $2,000 | $2,168 | ||||||
New Jersey State EDA Private Activity Revenue Bonds (AMT), The Goethals Project, | 2,500 | 2,735 | ||||||
New Jersey State EDA Revenue Bonds, MSU Student Housing Project - Provident Group, | 3,000 | 3,289 | ||||||
New Jersey State Health Care Facilities Financing Authority Revenue Bonds, St. Joseph’s Healthcare System, | 3,000 | 3,267 | ||||||
11,459 | ||||||||
NewYork – 0.0% | ||||||||
New York State Liberty Development Corp. Revenue Bonds, Series A, National Sports Museum Project, | 2,200 | – | ||||||
North Carolina – 3.0% | ||||||||
North Carolina State Capital Facilities Finance Agency Revenue Bonds, Series B, Duke University Project, | 5,000 | 5,690 | ||||||
North Carolina State Medical Care Commission Health Care Facilities First Mortgage Revenue Bonds, Series A, Deerfield Community, | 2,000 | 2,196 | ||||||
7,886 | ||||||||
Ohio – 7.7% | ||||||||
Lucas County Health Care Facilities Revenue Refunding & Improvement Bonds, Series A, Lutheran Homes, | 5,000 | 5,538 | ||||||
Ohio State Fresh Water Development Authority Revenue Bonds, Series A, | 5,690 | 6,895 | ||||||
Ohio State Turnpike Commission Revenue Bonds, Series A1, Junior Lien, Infrastructure Project, | 2,500 | 2,732 |
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 30 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 95.1% – continued | ||||||||
Ohio – 7.7% – continued | ||||||||
Toledo-Lucas County Port Authority Revenue Refunding Bonds, CSX Transportation, Inc. Project, | $4,000 | $5,016 | ||||||
20,181 | ||||||||
Pennsylvania – 4.0% | ||||||||
Allegheny County Redevelopment Authority Tax Allocation Bonds, Pittsburgh Mills Project, | 2,000 | 2,031 | ||||||
Butler County Hospital Authority Revenue Bonds, Butler Health System Project, | 3,000 | 3,577 | ||||||
Pennsylvania State Higher Educational Facilities Authority Revenue Bonds, Edinboro University Foundation, | 2,500 | 2,723 | ||||||
Pennsylvania State Higher Educational Facilities Authority Revenue Bonds, Shippensburg University, | 2,000 | 2,250 | ||||||
10,581 | ||||||||
Rhode Island – 1.1% | ||||||||
Tobacco Settlement Financing Corp. Asset Backed Revenue Bonds, Series A, | 3,000 | 3,000 | ||||||
Texas – 11.2% | ||||||||
Arlington Higher Education Finance Corp. Revenue Bonds, Series A, Lifeschool Dallas, (PSF-Gtd.), | 2,000 | 2,254 | ||||||
Dallas County Flood Control District G.O. Unlimited Refunding Bonds, | 1,000 | 1,002 | ||||||
HFDC of Central Texas, Inc. Retirement Facilitates Revenue Bonds, Series A, Legacy at Willow Bend, | 3,000 | 3,050 | ||||||
San Antonio Electric & Gas Revenue Bonds, Junior Lien, | 2,500 | 2,780 | ||||||
Texas State PFA Charter School Finance Corp. Education Revenue Bonds, Series A, Cosmos Foundation, Inc., | 3,500 | 3,977 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 95.1% – continued | ||||||||
Texas – 11.2% – continued | ||||||||
Texas State Private Activity Bond Surface Transportation Corp. Revenue Bonds, Senior Lien, LBJ Infrastructure, | $3,000 | $3,595 | ||||||
Texas State Private Activity Bond Surface Transportation Corp. Revenue Bonds, Senior Lien, NTE Mobility, | 2,500 | 2,945 | ||||||
Travis County Health Facilities Development Corp. Revenue Bonds, Westminster Manor Project, | 1,000 | 1,159 | ||||||
7.13%, 11/1/40 | 2,000 | 2,311 | ||||||
University of Texas Permanent University Fund Revenue Refunding Bonds, Series B, | 5,000 | 6,429 | ||||||
29,502 | ||||||||
Washington – 1.7% | ||||||||
Washington State Health Care Facilities Authority Revenue Bonds, Central Washington Health Services, | 4,000 | 4,584 | ||||||
Total Municipal Bonds | ||||||||
(Cost $225,352) | 250,329 | |||||||
NUMBER OF SHARES | VALUE (000s) | |||||||
INVESTMENT COMPANIES – 3.3% | ||||||||
Northern Institutional Funds - Tax-Exempt Portfolio, 0.01% (5)(6) | 8,630,300 | $8,630 | ||||||
Total Investment Companies | ||||||||
(Cost $8,630) | 8,630 | |||||||
Total Investments – 98.4% | ||||||||
(Cost $233,982) | 258,959 | |||||||
Other Assets less Liabilities – 1.6% | 4,201 | |||||||
NET ASSETS – 100.0% | $263,160 |
(1) | Level 3 asset that is worthless, bankrupt or has been delisted. |
(2) | Issuer has defaulted on terms of debt obligation. |
(3) | Restricted security that has been deemed illiquid. At September 30, 2014, the value of this restricted illiquid security amounted to approximately $1,009,000 or 0.4% of net assets. Additional information on the restricted illiquid security is as follows: |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 31 | TAX-EXEMPT FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
HIGH YIELD MUNICIPAL FUND continued | SEPTEMBER 30, 2014 (UNAUDITED) |
SECURITY | ACQUISITION AND ENFORCEABLE DATE | ACQUISITION (000s) | ||||
Vigo County Hospital Authority Revenue Bonds, Union Hospital, Inc., 5.70%, 9/1/37 | 7/25/08 | $861 |
(4) | 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. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Trustees of Northern Funds. |
(5) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
(6) | At March 31, 2014, the value of the Fund’s investment in the Tax-Exempt Portfolio of the Northern Institutional Funds was approximately $5,570,000 with net purchase of approximately $3,060,000 during the six months ended September 30, 2014. |
Percentages shown are based on Net Assets.
At September 30, 2014, the credit quality distribution for the Fund as a percentage of investments including cash was:
QUALITY DISTRIBUTION* | % OF INVESTMENTS | |||
AAA | 6.0% | |||
AA | 9.9 | |||
A | 10.4 | |||
BBB | 44.1 | |||
BB | 12.1 | |||
B | 2.0 | |||
Not rated | 12.2 | |||
Cash and Equivalents | 3.3 | |||
Total | 100.0% |
* Credit quality ratings are based on converting the available Moody’s, Standard & Poor’s, and/or Fitch ratings to a common numerical basis and averaging that result. If none of these three rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). The Standard & Poor’s short-term municipal rating of SP1 reflects a strong capacity to pay principal and interest (an issue determined to possess a very strong capacity to pay debt service is given a plus (+) designation). The Moody’s short-term municipal rating of MIG1 denotes superior credit quality (excellent protection is afforded by established cash flows, highly reliable liquidity support or demonstrated broad-based access to the market for refinancing). The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.
At September 30, 2014, the industry sectors for the Fund were:
INDUSTRY SECTOR | % OF INVESTMENTS | |||
Airport | 6.9% | |||
Development | 14.0 | |||
Education | 6.4 | |||
General | 8.0 | |||
Higher Education | 12.2 | |||
Medical | 16.2 | |||
Nursing Homes | 6.9 | |||
Transportation | 8.2 | |||
Water | 5.8 | |||
All other sectors less than 5% | 15.4 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Municipal Bonds | $– | $250,329 | (1) | $– | $250,329 | |||||||||||
Investment Companies | 8,630 | – | – | 8,630 | ||||||||||||
Total Investments | $8,630 | $250,329 | $– | $258,959 |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 32 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
INTERMEDIATE TAX-EXEMPT FUND | SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 86.9% | ||||||||
Alabama – 0.5% | ||||||||
Alabama State Public School & College Authority Revenue Refunding Bonds, Series B, | $5,000 | $6,134 | ||||||
University of Alabama General Revenue Refunding Bonds, Series A, | 5,875 | 7,090 | ||||||
13,224 | ||||||||
Alaska – 0.1% | ||||||||
Anchorage Water Revenue Refunding Bonds (NATL-RE Insured), | 1,700 | 1,844 | ||||||
Arizona – 3.9% | ||||||||
Arizona State School Facilities Board COPS, | 10,000 | 11,462 | ||||||
Arizona State Transportation Board Excise TRB, Maricopa County Regional Area, | 5,000 | 5,183 | ||||||
5.25%, 7/1/20 | 10,000 | 11,754 | ||||||
Arizona State Water Infrastructure Finance Authority Revenue Refunding Bonds, Series A, | 6,750 | 8,217 | ||||||
Chandler Excise TRB, | 5,000 | 6,021 | ||||||
Maricopa County Unified School District No. 48 Scottsdale G.O. Unlimited Refunding Bonds, | 5,000 | 6,041 | ||||||
Maricopa County Unified School District No. 97 Deer Valley G.O. Unlimited Bonds, Series C, School Improvement Project of 2008, | 4,150 | 4,877 | ||||||
Mesa Utility System Revenue Refunding Bonds, | 5,000 | 4,916 | ||||||
Phoenix Civic Airport Improvement Corp. Revenue Refunding Bonds (AMT), | 1,500 | 1,754 | ||||||
Phoenix Civic Improvement Corp. Airport Revenue Bonds, Series A, Junior Lien, | 3,000 | 3,488 | ||||||
Phoenix Civic Plaza Improvement Corp. Excise TRB, Subseries A (BHAC-CR FGIC Insured), | 5,000 | 5,138 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 86.9% – continued | ||||||||
Arizona – 3.9% – continued | ||||||||
Phoenix G.O. Unlimited Refunding Bonds, | $5,000 | $5,713 | ||||||
Salt River Project Agriculture Improvement and Power District Electric Revenue Refunding Bonds, Series A, | 10,000 | 12,116 | ||||||
Scottsdale G.O. Limited Refunding Bonds, | 3,000 | 3,659 | ||||||
Scottsdale Preservation Authority Excise Tax Revenue Refunding Bonds, | 5,990 | 6,933 | ||||||
97,272 | ||||||||
Arkansas – 0.3% | ||||||||
Arkansas State Federal Highway Grant Anticipation G.O. Unlimited Bonds, | 6,120 | 6,355 | ||||||
California – 7.0% | ||||||||
Bay Area Toll Bridge Authority Variable Revenue Bonds, Series B, | 5,000 | 5,057 | ||||||
Bay Area Toll Bridge Authority Variable Revenue Bonds, Series C, | 10,000 | 10,196 | ||||||
Cabrillo Community College District Capital Appreciation G.O. Unlimited Bonds, Series B, Election of 2004 (NATL-RE Insured), | 11,755 | 3,574 | ||||||
Cabrillo Community College District G.O. Unlimited Bonds, Series A (NATL-RE Insured), Partially Prerefunded, | 1,815 | 1,822 | ||||||
California State G.O. Unlimited Bonds, Series 2007, Unrefunded Balance (AMBAC Insured), | 75 | 75 | ||||||
California State G.O. Unlimited Refunding Bonds, | 1,000 | 1,197 | ||||||
5.25%, 9/1/25 | 5,000 | 5,995 | ||||||
6.25%, 11/1/34 | 5,000 | 6,131 | ||||||
California State Health Facilities Financing Authority Revenue Bonds, Series A, St. Joseph Health System, | 5,000 | 5,790 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 33 | TAX-EXEMPT FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
INTERMEDIATE TAX-EXEMPT FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 86.9% – continued | ||||||||
California – 7.0% – continued | ||||||||
California State Various G.O. Unlimited Bonds, Series 2007, Unrefunded Balance, | $80 | $80 | ||||||
California State Various Purpose G.O. Unlimited Bonds, Green Bonds, | 3,500 | 4,169 | ||||||
California State Various Purpose G.O. Unlimited Refunding Bonds, | 10,000 | 12,110 | ||||||
5.00%, 10/1/33 (1) | 4,930 | 5,707 | ||||||
Carlsbad Unified School District G.O. Unlimited Convertible CABS, Series C, Election of 2006, | 11,850 | 8,295 | ||||||
Chabot-Las Positas Community College District G.O. Unlimited CABS, Series C (AGM-CR AMBAC Insured), | 1,420 | 409 | ||||||
2.83%, 8/1/40 (2) | 10,000 | 2,735 | ||||||
2.77%, 8/1/41 (2) | 6,775 | 1,762 | ||||||
Contra Costa Community College District G.O. Unlimited Bonds, Series A, Election of 2014, | 2,750 | 2,831 | ||||||
Cupertino Union School District Crossover G.O. Unlimited Refunding Bonds, Series A, | 435 | 525 | ||||||
Desert Community College District Capital Appreciation G.O. Unlimited Bonds, Series C, Election of 2004 (AGM Insured), | 12,000 | 2,181 | ||||||
East Bay Municipal Utility District Water System Revenue Refunding Bonds, Series B, | 10,000 | 12,601 | ||||||
Long Beach Harbor Revenue Refunding Bonds, Series A (AMT) (NATL-RE Insured), | 1,000 | 1,029 | ||||||
Los Angeles Department of Airports Revenue Bonds, Series A, | 5,000 | 5,948 | ||||||
Los Angeles Department of Water & Power System Revenue Bonds, Subseries A-1 (AMBAC Insured), | 3,000 | 3,297 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 86.9% – continued | ||||||||
California – 7.0% – continued | ||||||||
Los Angeles G.O. Unlimited Refunding Bonds, Series B, | $55 | $66 | ||||||
Los Angeles Harbor Department Revenue Bonds, Series C, | 2,500 | 2,861 | ||||||
Los Angeles Harbor Department Revenue Refunding Bonds, Series A (AMT), | 2,000 | 2,232 | ||||||
Metropolitan Water District of Southern California State Revenue Bonds, Series A, | 5,000 | 5,547 | ||||||
Mount San Antonio Community College District G.O. Unlimited Convertible CABS, Series A, Election of 2008, | 2,500 | 1,565 | ||||||
Orange County Sanitation District COPS, Series A, | 2,250 | 2,252 | ||||||
San Francisco Bay Area Toll Bridge Authority Revenue Bonds, | 7,390 | 8,747 | ||||||
San Francisco City & County Airports Commision International Airport Revenue Bonds, Series A (AMT), | 5,000 | 5,503 | ||||||
San Francisco City & County Airports Commission Revenue Bonds, Series E, | 2,500 | 2,879 | ||||||
Southern California State Public Power Authority Revenue Bonds, Series B, Southern Transmission Project, | 5,000 | 5,917 | ||||||
University of California General Revenue Bonds, Series AF, | 5,000 | 5,657 | ||||||
University of California General Revenue Bonds, Series AI, | 14,000 | 15,863 | ||||||
University of California General Revenue Bonds, Series Q, | 2,500 | 2,805 | ||||||
University of California General Revenue Bonds, Series U, | 5,000 | 5,956 |
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 34 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED)
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 86.9% – continued | ||||||||
California – 7.0% – continued | ||||||||
University of California Limited Project General Revenue Bonds, Series D (NATL Insured), | $1,860 | $1,995 | ||||||
173,361 | ||||||||
Colorado – 0.8% | ||||||||
Denver City & County Airport System Revenue Bonds, Subseries B, | 1,500 | 1,757 | ||||||
5.25%, 11/15/29 | 1,740 | 2,028 | ||||||
Denver City & County Excise Tax Revenue Refunding Bonds, Series A (Assured Guaranty Insured), | 6,550 | 7,889 | ||||||
Denver City & County School District No. 1 G.O. Unlimited Refunding Bonds, Series A (NATL Insured State Aid Withholding), | 5,000 | 6,245 | ||||||
Metro Wastewater Reclamation District Sewer Revenue Bonds, Series A, | 2,500 | 3,012 | ||||||
20,931 | ||||||||
Connecticut – 2.4% | ||||||||
Connecticut State G.O. Unlimited Bonds, Series A, | 6,500 | 7,934 | ||||||
Connecticut State G.O. Unlimited Bonds, Series B, | 2,000 | 2,348 | ||||||
5.00%, 4/15/23 | 5,500 | 6,533 | ||||||
Connecticut State G.O. Unlimited Bonds, Series C, | 5,090 | 6,132 | ||||||
Connecticut State G.O. Unlimited Refunding Bonds, Series C, | 5,000 | 6,061 | ||||||
5.00%, 12/15/23 | 3,415 | 4,167 | ||||||
Connecticut State G.O. Unlimited TRB, Series A, | 10,000 | 9,994 | ||||||
Connecticut State G.O. Unlimited Bonds, Series D, | 5,000 | 5,923 | ||||||
Connecticut State GAAP Conversion G.O. Unlimited Bonds, Series A, | 6,000 | 7,177 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 86.9% – continued | ||||||||
Connecticut – 2.4% – continued | ||||||||
Connecticut State Special Tax Obligation Transportation Infrastructure Revenue Refunding Bonds, Series B, | $2,725 | $2,871 | ||||||
59,140 | ||||||||
Delaware – 0.9% | ||||||||
Delaware State G.O. Unlimited Bonds, | 5,530 | 6,600 | ||||||
Delaware State Transportation Authority System Senior Revenue Bonds, | 3,195 | 3,313 | ||||||
5.00%, 7/1/21 | 10,000 | 12,093 | ||||||
22,006 | ||||||||
District of Columbia – 1.1% | ||||||||
District of Columbia Water & Sewer Authority Public Utility Revenue Bonds, Series A, | 1,000 | 1,138 | ||||||
6.00%, 10/1/35 | 5,000 | 5,828 | ||||||
5.50%, 10/1/39 | 10,500 | 11,888 | ||||||
Metropolitan Washington Airports Authority System Revenue Bonds, Series C (AMT), | 3,000 | 3,525 | ||||||
5.00%, 10/1/26 | 1,500 | 1,709 | ||||||
Metropolitan Washington Airports Authority System Revenue Refunding Bonds, Series A (AMT), | 3,000 | 3,435 | ||||||
27,523 | ||||||||
Florida – 4.4% | ||||||||
Broward County Airport System Revenue Bonds, Series C, | 6,185 | 7,128 | ||||||
Broward County Port Facilities Revenue Refunding Bonds, Series A (AGM Insured), | 1,000 | 1,134 | ||||||
5.00%, 9/1/25 | 1,000 | 1,126 | ||||||
Broward County Port Facilities Revenue Refunding Bonds, Series B (AMT), | 2,500 | 2,826 | ||||||
Florida State Board of Governors University Dormitory Revenue Refunding Bonds, Series A, | 2,945 | 3,561 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 35 | TAX-EXEMPT FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
INTERMEDIATE TAX-EXEMPT FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 86.9% – continued | ||||||||
Florida – 4.4% – continued | ||||||||
Florida State Board of Public Education G.O. Unlimited Bonds, Series A, Capital Outlay, | $11,135 | $12,788 | ||||||
Florida State Department of Transportation Right of Way G.O. Unlimited Bonds, | 12,475 | 13,873 | ||||||
Florida State Housing Finance Corp. Revenue Bonds, Series B, Housing Ridge Club Apartments, | 1,000 | 1,001 | ||||||
Florida State Hurricane Catastrophe Fund Finance Corp. Revenue Bonds, Series A, Escrowed To Maturity, | 1,000 | 1,036 | ||||||
Florida State Ports Financing Commission Revenue Refunding Bonds, Series B (AMT), State Transportation Trust Fund, | 3,395 | 3,901 | ||||||
Florida State Turnpike Authority Revenue Bonds, Series B, | 3,000 | 3,618 | ||||||
Greater Orlando Aviation Authority Airport Facilities Revenue Refunding Bonds, Series A (AMT) (AGM Insured), | 400 | 437 | ||||||
Hillsborough County Aviation Authority Revenue Refunding Bonds, Series A (AMT), Tampa International Airport (NATL-RE Insured), | 4,245 | 4,543 | ||||||
JEA Electric System Revenue Bonds, Subseries D, | 1,000 | 1,047 | ||||||
Miami-Dade County Transit System Sales Surtax Revenue Bonds, | 3,320 | 3,658 | ||||||
Miami-Dade County Water & Sewer System Revenue Refunding Bonds, Series B (AGM Insured), | 3,000 | 3,591 | ||||||
5.25%, 10/1/22 | 2,500 | 3,032 | ||||||
Orlando Contract Tourist Development Tax Payments Revenue Bonds, Series A, | 4,500 | 5,030 | ||||||
Palm Beach County Public Improvement Revenue Refunding Bonds, Series A, | 6,170 | 6,861 | ||||||
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 86.9% – continued | ||||||||
Florida – 4.4% – continued | ||||||||
Palm Beach County School District Board COPS, Series B, | $3,235 | $3,967 | ||||||
Reedy Creek Improvement District G.O. Limited Bonds, Series A, | 5,000 | 5,803 | ||||||
5.25%, 6/1/30 | 5,000 | 5,779 | ||||||
South Miami Health Facilities Authority Revenue Bonds, Baptist Health South Florida Group, | 9,630 | 10,164 | ||||||
Sunrise Utility System Revenue Refunding Bonds, Series A (AMBAC Insured), | 3,920 | 4,028 | ||||||
109,932 | ||||||||
Georgia – 2.1% | ||||||||
Athens-Clarke County Unified Government Water & Sewerage Revenue Bonds, | 10,000 | 11,455 | ||||||
Burke County Development Authority Revenue Bonds, Georgia Power Co. Plant Vogle Project, | 1,150 | 1,163 | ||||||
Georgia State G.O. Unlimited Bonds, Series G, | 13,205 | 13,701 | ||||||
Georgia State G.O. Unlimited Refunding Bonds, Series E-2, | 5,000 | 5,200 | ||||||
5.00%, 9/1/21 | 5,000 | 6,073 | ||||||
Georgia State G.O. Unlimited Refunding Bonds, Series I, | 5,000 | 5,993 | ||||||
5.00%, 7/1/21 | 1,100 | 1,333 | ||||||
Georgia State G.O. Unlimited Refunding Bonds, Series J-2, | 5,870 | 6,854 | ||||||
51,772 | ||||||||
Hawaii – 0.6% | ||||||||
Hawaii State Airports System Revenue Bonds, Series A, | 1,000 | 1,152 | ||||||
Hawaii State G.O. Unlimited Refunding Bonds, Series EF, | 5,500 | 6,656 |
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 36 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED)
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 86.9% – continued | ||||||||
Hawaii – 0.6% – continued | ||||||||
Hawaii State G.O. Unlimited Refunding Bonds, Series EL, | $3,530 | $4,306 | ||||||
Honolulu City & County Wastewater System Revenue Bonds, Senior Series A, First Bond Resolution (NATL-RE Insured), | 3,000 | 3,170 | ||||||
15,284 | ||||||||
Illinois – 3.2% | ||||||||
Chicago Midway Airport Revenue Refunding Bonds, Second Lien Series B, | 2,500 | 2,794 | ||||||
Chicago Midway Airport Revenue Refunding Bonds, Series A (AMT), Second Lien, | 3,500 | 3,998 | ||||||
5.50%, 1/1/30 | 2,025 | 2,304 | ||||||
Chicago O’Hare International Airport Revenue Refunding Bonds, Series B (AMT), Passenger Facilities Charge, | 2,500 | 2,811 | ||||||
Cook County Sales TRB, | 2,485 | 2,810 | ||||||
Illinois State Build Sales TRB, | 5,000 | 5,830 | ||||||
Illinois State Educational Facilities Authority Adjustable Medium Term Revenue Bonds, Field Museum, | 4,250 | 4,415 | ||||||
Illinois State Finance Authority Revenue Bonds, Series A, Art Institute Chicago, | 2,500 | 2,731 | ||||||
Illinois State Finance Authority Revenue Bonds, Series A-2, Advocate Health Care, | 500 | 583 | ||||||
Illinois State Municipal Electric Agency Power Supply Revenue Bonds (NATL Insured), | 2,000 | 2,095 | ||||||
Illinois State Municipal Electric Agency Power Supply Revenue Bonds, Series A (NATL-RE-IBC FGIC Insured), | 1,830 | 1,997 | ||||||
Illinois State Tax Supported Sports Facilities Authority Revenue Refunding Bonds (AGM Insured), | 5,500 | 6,166 | ||||||
5.25%, 6/15/31 | 5,000 | 5,584 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 86.9% – continued | ||||||||
Illinois – 3.2% – continued | ||||||||
Illinois State Toll Highway Authority Senior Priority Revenue Bonds, Series A (AGM Insured), Prerefunded, | $5,000 | $5,181 | ||||||
Illinois State Unemployment Insurance Fund Building Receipts Revenue Bonds, Series B, | 2,540 | 2,624 | ||||||
Lake County Community Consolidated School District No. 46 Grayslake G.O. Unlimited Bonds (AGM Insured), Prerefunded, | 805 | 848 | ||||||
Lake County Community Consolidated School District No. 46 Grayslake G.O. Unlimited Bonds, Unrefunded Balance (AGM Insured), | 195 | 205 | ||||||
Metropolitan Pier & Exposition Authority Dedicated State Tax Revenue Refunding Bonds, Series A, McCormick Place Expansion (NATL Insured), | 2,000 | 2,353 | ||||||
Metropolitan Pier & Exposition Authority Dedicated State Tax Revenue Refunding Bonds, Series B, McCormick Place Project (AGM Insured), | 3,000 | 3,148 | ||||||
Sangamon County School District No. 186 Springfield G.O. Limited Refunding Bonds, Series B (BAM Insured), | 5,965 | 6,855 | ||||||
Will Grundy Etc. Counties Community College District No. 525 G.O. Unlimited Refunding Bonds, Series B, Alternative Revenue Source, | 2,500 | 2,815 | ||||||
Winnebago County Public Safety Sales Tax G.O. Unlimited Refunding Bonds, Series A, | 2,700 | 3,203 | ||||||
5.00%, 12/30/24 | 6,040 | 7,071 | ||||||
78,421 | ||||||||
Indiana – 1.9% | ||||||||
Indiana Finance Authority Wastewater Utility Revenue Bonds, Series A, First Lien, CWA Authority, | 5,750 | 6,615 | ||||||
5.25%, 10/1/38 | 2,980 | 3,382 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 37 | TAX-EXEMPT FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
INTERMEDIATE TAX-EXEMPT FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 86.9% – continued | ||||||||
Indiana – 1.9% – continued | ||||||||
Indiana State Educational Facilities Finance Authority Revenue Bonds, Valparaiso University Project, | $2,500 | $2,770 | ||||||
Indiana State Municipal Power Agency Revenue Bonds, Series A, Power Supply System (AMBAC Insured), | 13,060 | 13,752 | ||||||
Indianapolis Local Public Improvement Bond Bank Revenue Bonds, Series A, | 5,000 | 5,761 | ||||||
Merrillville Multi School Building Corp. First Mortgage Revenue Bonds (State Aid Withholding), | 1,000 | 1,119 | ||||||
Porter County Jail Building Corp. First Mortgage Revenue Refunding Bonds (AGM Insured), | 1,500 | 1,722 | ||||||
5.50%, 1/10/24 | 1,135 | 1,318 | ||||||
Whiting Enivornmental Facilities Variable Revenue Bonds, BP Products North America, | 11,500 | 11,496 | ||||||
47,935 | ||||||||
Kansas – 0.6% | ||||||||
Johnson County Unified School District No. 512 Shawnee Mission G.O. Unlimited Refunding Bonds, Series A, | 4,145 | 4,262 | ||||||
Kansas State Development Finance Authority Revenue Refunding Bonds, Series D-2, Kansas State University Housing Projects, | 3,110 | 3,690 | ||||||
Saline County Unified School District No. 305 Salina G.O. Unlimited Refunding & Improvement Bonds, | 5,230 | 6,340 | ||||||
14,292 | ||||||||
Maryland – 5.8% | ||||||||
Baltimore County Consolidated Public Improvement G.O. Unlimited Refunding Bonds, | 9,895 | 10,297 | ||||||
Baltimore County Metropolitan District G.O. Unlimited Refunding Bonds, Series B, | 5,000 | 5,203 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 86.9% – continued | ||||||||
Maryland – 5.8% – continued | ||||||||
Baltimore Water Project Revenue Refunding Bonds, Series B, | $2,000 | $2,266 | ||||||
Baltimore Water Project Revenue Refunding Bonds, Series D, | 5,425 | 6,579 | ||||||
Maryland State & Local Facilities G.O. Unlimited Bonds, Second Series B, | 3,475 | 3,630 | ||||||
Maryland State & Local Facilities Loan G.O. Unlimited Bonds, First Series, | 1,500 | 1,531 | ||||||
Maryland State & Local Facilities Loan G.O. Unlimited Bonds, Second Series B, | 2,500 | 2,952 | ||||||
Maryland State & Local Facilities Loan G.O. Unlimited Bonds, Series 2013-1, Prerefunded, | 10,000 | 12,085 | ||||||
Maryland State Department of Transportation Consolidated Revenue Bonds, | 8,630 | 10,231 | ||||||
Maryland State G.O. Unlimited Bonds, First Series B, | 5,000 | 5,643 | ||||||
Maryland State G.O. Unlimited Bonds, Second Series B, | 17,480 | 21,137 | ||||||
4.00%, 8/1/27 | 8,000 | 8,834 | ||||||
3.00%, 8/1/28 | 10,060 | 10,208 | ||||||
Maryland State G.O. Unlimited Bonds, Series B, Prerefunded, | 10,985 | 12,970 | ||||||
Maryland State G.O. Unlimited Refunding Bonds, First Series B, | 5,000 | 5,899 | ||||||
Maryland State G.O. Unlimited Refunding Bonds, Series 2-C, | 10,000 | 12,233 | ||||||
Montgomery County Consolidated Public Improvement G.O. Unlimited Bonds, Series A, | 5,750 | 6,878 | ||||||
Washington Suburban Sanitary District Consolidated Public Improvement G.O. Unlimited Bonds, | 5,000 | 6,055 | ||||||
144,631 |
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 38 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED)
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 86.9% – continued | ||||||||
Massachusetts – 7.2% | ||||||||
Massachusetts Bay Transportation Assessment Authority Revenue Bonds, Series A, | $500 | $572 | ||||||
Massachusetts State Bay Transportation Authority Sales Tax Revenue Refunding Bonds, Senior Series A-1, | 5,000 | 6,307 | ||||||
Massachusetts State Consolidated Loan G.O. Limited Bonds, Series D, | 10,000 | 11,987 | ||||||
Massachusetts State Development Finance Agency Revenue Bonds, Series B-1, Harvard University, | 10,000 | 11,791 | ||||||
Massachusetts State G.O. Limited Bonds, Series A, | 5,000 | 5,769 | ||||||
Massachusetts State G.O. Limited Refunding Bonds, Series B, | 3,505 | 4,239 | ||||||
5.25%, 8/1/21 | 2,500 | 3,059 | ||||||
Massachusetts State G.O. Limited Refunding Bonds, Series B (AMBAC-TCRS-BNY Insured), | 5,000 | 6,426 | ||||||
Massachusetts State G.O. Limited Refunding Bonds, Series B (AGM Insured), | 3,850 | 4,850 | ||||||
Massachusetts State G.O. Limited Refunding Bonds, Series B (AGM Insured), | 4,185 | 5,228 | ||||||
5.25%, 9/1/25 | 500 | 631 | ||||||
Massachusetts State G.O. Limited Refunding Bonds, Series C, | 15,000 | 18,566 | ||||||
Massachusetts State G.O. Limited Refunding Bonds, Series D, | 5,000 | 5,268 | ||||||
Massachusetts State Health & Educational Facilities Authority Partners Healthcare Revenue Bonds, Series J1, | 5,000 | 5,750 | ||||||
Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series A, Harvard University, | 5,000 | 5,846 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 86.9% – continued | ||||||||
Massachusetts – 7.2% – continued | ||||||||
Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series M, TUFTS University, | $1,250 | $1,566 | ||||||
Massachusetts State Health & Educational Facilities Authority Various Revenue Bonds, Series Y, Harvard University Issue, | 10,000 | 10,000 | ||||||
Massachusetts State School Building Authority Sales TRB, Series A (AGM Insured), Prerefunded, | 10,000 | 10,423 | ||||||
5.00%, 8/15/15 | 1,290 | 1,345 | ||||||
Massachusetts State School Building Authority Sales TRB, Series A (NATL-RE Insured), Prerefunded, 5.00%, 8/15/27 | 9,255 | 9,647 | ||||||
Massachusetts State School Building Authority Sales TRB, Series A (AMBAC Insured), | 5,000 | 5,479 | ||||||
Massachusetts State School Building Authority Sales TRB, Series A-2012-2 (AGM Insured), Prerefunded, | 14,660 | 15,280 | ||||||
Massachusetts State Special Obligation Consolidated Loan Revenue Bonds, Series A (AGM Insured), | 500 | 582 | ||||||
5.50%, 6/1/21 | 500 | 615 | ||||||
Massachusetts State Water Pollution Abatement Trust Revenue Refunding Bonds, | 10,775 | 13,510 | ||||||
Massachusetts State Water Resources Authority General Revenue Bonds, Series J (AGM G.O. of Authority Insured), Escrowed To Maturity, | 1,500 | 1,564 | ||||||
Massachusetts State Water Resources Authority General Revenue Bonds, Series J (AGM G.O. of Authority Insured), | 3,300 | 4,137 | ||||||
Massachusetts State Water Resources Authority General Revenue Refunding Bonds, Series B (G.O. of Authority Insured), | 5,000 | 5,863 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 39 | TAX-EXEMPT FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
INTERMEDIATE TAX-EXEMPT FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 86.9% – continued | ||||||||
Massachusetts – 7.2% – continued | ||||||||
Massachusetts State Water Resources Authority Revenue Bonds, Series A (G.O. of Authority Insured), Escrowed to Maturity, | $1,400 | $1,590 | ||||||
177,890 | ||||||||
Michigan – 1.7% | ||||||||
Caledonia Community Schools G.O. Unlimited Refunding Bonds (NATL-RE Q-SBLF Insured), | 1,140 | 1,171 | ||||||
Michigan State Building Authority Facilities Program Revenue Refunding Bonds, Series II-A, | 10,000 | 11,291 | ||||||
Michigan State Environmental Program G.O. Unlimited Refunding Bonds, | 5,000 | 5,895 | ||||||
3.00%, 11/1/20 | 2,500 | 2,695 | ||||||
Michigan State Finance Authority Subordinate Revenue Refunding Bonds, State Revolving Fund, | 3,035 | 3,663 | ||||||
5.00%, 10/1/25 | 3,970 | 4,758 | ||||||
Michigan State Municipal Bond Authority Revenue Bonds, Clean Water Fund, Prerefunded, | 4,440 | 4,441 | ||||||
Michigan State Municipal Bond Authority Revenue Bonds, Clean Water Fund, Unrefunded Balance, | 345 | 346 | ||||||
Michigan State Trunk Line Revenue Refunding Bonds, | 2,500 | 3,010 | ||||||
Royal Oak Hospital Finance Authority Revenue Refunding Bonds, Series D, William Beaumont Hospital, | 5,000 | 5,475 | ||||||
42,745 | ||||||||
Minnesota – 1.7% | ||||||||
Metropolitan Council Minneapolis- Saintpaul Metropolitan Area G.O. Unlimited Bonds, Series C, Transit Notes, | 2,000 | 2,041 | ||||||
Metropolitan Council Minneapolis- Saintpaul Metropolitan Area G.O. Unlimited GANS, Series A, | 4,000 | 4,065 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 86.9% – continued | ||||||||
Minnesota – 1.7% – continued | ||||||||
1.00%, 3/1/16 | $7,000 | $7,051 | ||||||
Minneapolis-Saint Paul Metropolitan Airports Commission Revenue Refunding Bonds, Subseries A, | 1,600 | 1,865 | ||||||
Minneapolis-St. Paul Metropolitan Airports Commission Revenue Refunding Bonds, Senior Series B (AMT), | 2,500 | 2,846 | ||||||
Minnesota State G.O. Unlimited Bonds, Series A, Escrowed to Maturity, | 75 | 90 | ||||||
Minnesota State G.O. Unlimited Bonds, Series A, Unrefunded Balance, | 4,925 | 5,917 | ||||||
Minnesota State Trunk Highway G.O. Unlimited Bonds, Series B, | 5,500 | 6,764 | ||||||
Minnesota State Various Purpose G.O. Unlimited Bonds, Series A, | 5,000 | 6,016 | ||||||
Minnesota State Various Purpose G.O. Unlimited Bonds, Series A, Unrefunded Balance, | 5,300 | 6,404 | ||||||
Minnesota State Various Purpose G.O. Unlimited Bonds, Series A, Prerefunded, | 245 | 299 | ||||||
43,358 | ||||||||
Mississippi – 0.7% | ||||||||
Mississippi State G.O. Unlimited Bonds, Series F, | 5,090 | 6,301 | ||||||
Mississippi State G.O. Unlimited Refunding Bonds, Series F, | 8,705 | 10,495 | ||||||
Mississippi State Home Corp. SFM Revenue Bonds, Series C-2 (AMT) (GNMA/FNMA/FHLMC Insured), | 15 | 16 | ||||||
16,812 | ||||||||
Missouri – 1.6% | ||||||||
Curators of the University of Missouri System Facilities Revenue Refunding Bonds, Series A, | 1,700 | 2,108 |
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 40 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 86.9% – continued | ||||||||
Missouri – 1.6% – continued | ||||||||
Missouri State Environmental Improvement & Energy Resources Authority Water Pollution Revenue Refunding Bonds, Series A, State Revolving Funds, | $5,060 | $5,951 | ||||||
Missouri State Environmental Improvement & Energy Resources Authority Water Pollution Revenue Refunding Bonds, State Revolving Funds Program, | 3,620 | 4,460 | ||||||
Missouri State Health & Educational Facilities Authority Revenue Bonds, Series A, SSM Health Care, | 2,000 | 2,367 | ||||||
Missouri State Highway & Transit Commission Road Revenue Refunding Bonds, Series A, First Lien, | 10,000 | 12,181 | ||||||
Missouri State Highways & Transit Commission Road Revenue Refunding Bonds, Series A, First Lien, | 10,000 | 12,454 | ||||||
39,521 | ||||||||
Nebraska – 0.3% | ||||||||
Lincoln Electric System Revenue Bonds, Prerefunded, | 5,500 | 5,744 | ||||||
Nebraska State Public Power District General Revenue Bonds, Series B, | 1,000 | 1,200 | ||||||
6,944 | ||||||||
Nevada – 0.6% | ||||||||
Clark County G.O. Limited Tax Bank Bonds, | 2,500 | 2,761 | ||||||
Nevada State Capital Improvement & Cultural Affairs G.O. Limited Bonds, Series C, | 8,000 | 9,059 | ||||||
Washoe County Highway Motor Vehicle Fuel TRB, | 3,400 | 3,783 | ||||||
15,603 | ||||||||
New Hampshire – 0.5% | ||||||||
New Hampshire State Health & Education Facilities Authority Revenue Bonds, Dartmouth College, Health University System, | 5,000 | 5,742 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 86.9% – continued | ||||||||
New Hampshire – 0.5% – continued | ||||||||
New Hampshire State Municipal Bond Bank Revenue Refunding Bonds, Series A, | $2,800 | $3,334 | ||||||
5.00%, 8/15/21 | 2,970 | 3,569 | ||||||
12,645 | ||||||||
New Jersey – 1.4% | ||||||||
New Jersey State Economic Development Authority Revenue Refunding Bonds, Series PP, School Facilities Construction Project, | 2,000 | 2,243 | ||||||
5.00%, 6/15/19 | 5,000 | 5,666 | ||||||
5.00%, 6/15/26 | 2,500 | 2,837 | ||||||
New Jersey State Economic Development Authority Revenue Refunding Bonds, Series PP, School Facilities Construction Project (AGM-CR Insured), | 10,000 | 11,644 | ||||||
New Jersey State Transportation Program Trust Fund Authority Revenue Bonds, Series AA, | 5,000 | 5,629 | ||||||
New Jersey State Transportation Program Trust Fund Authority Revenue Bonds, Series AA, (State Appropriation Insured), | 1,300 | 1,491 | ||||||
New Jersey State Transportation System Trust Fund Authority Revenue Bonds, Series A, | 5,000 | 5,824 | ||||||
35,334 | ||||||||
New Mexico – 0.1% | ||||||||
New Mexico State Finance Authority Revenue Bonds, Series C, | 2,770 | 3,300 | ||||||
New York – 14.5% | ||||||||
Long Island Power Authority Revenue Bonds, Series A, | 5,000 | 5,889 | ||||||
Metropolitan Transportation Authority Dedicated Tax Fund Revenue Bonds, Series B, | 5,000 | 5,672 | ||||||
Metropolitan Transportation Authority Revenue Bonds, Series G, | 5,000 | 5,727 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 41 | TAX-EXEMPT FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
INTERMEDIATE TAX-EXEMPT FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 86.9% – continued | ||||||||
New York – 14.5% – continued | ||||||||
Metropolitan Transportation Authority Revenue Refunding Bonds, Series D, | $5,000 | $5,607 | ||||||
5.00%, 11/15/24 | 5,000 | 5,599 | ||||||
New York City G.O. Unlimited Bonds, Series E, Prerefunded, | 4,680 | 4,699 | ||||||
New York City G.O. Unlimited Bonds, Series E, Unrefunded Balance, | 5,320 | 5,342 | ||||||
New York City G.O. Unlimited Bonds, Subseries C-1, Fiscal 2008, | 5,000 | 5,615 | ||||||
New York City G.O. Unlimited Refunding Bonds, Series J, | 10,000 | 11,982 | ||||||
New York City Municipal Finance Authority Water & Sewer System Fiscal Revenue Bonds, Series BB, Second General Resolution, | 8,340 | 9,169 | ||||||
New York City Municipal Finance Authority Water & Sewer System Revenue Bonds, Series AA, General Resolution, | 10,000 | 10,096 | ||||||
New York City Municipal Finance Authority Water & Sewer System Revenue Bonds, Series CC, Second General Resolution, | 5,000 | 5,040 | ||||||
New York City Municipal Finance Authority Water & Sewer System Revenue Bonds, Series GG-1, Second General Resolution, | 5,000 | 5,603 | ||||||
New York City Transitional Finance Authority Building Aid Revenue Bonds, Subseries S-1A (State Aid Withholding), | 10,000 | 11,537 | ||||||
New York City Transitional Finance Authority Building Aid Revenue Refunding Bonds, Subseries S-1A, | 4,000 | 4,013 | ||||||
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries A-1, | 5,000 | 6,052 | ||||||
5.00%, 5/1/38 | 2,500 | 2,821 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 86.9% – continued | ||||||||
New York – 14.5% – continued | ||||||||
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries B, | $5,000 | $5,914 | ||||||
5.00%, 2/1/22 | 2,000 | 2,374 | ||||||
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries B1, | 10,000 | 12,233 | ||||||
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries E-1, | 10,380 | 12,513 | ||||||
New York City Transitional Finance Authority Future Tax Secured Revenue Refunding Bonds, Series B, | 1,000 | 1,193 | ||||||
New York City Transitional Finance Authority Future Tax Secured Subordinated Revenue Bonds, Series C, Prerefunded, | 13,230 | 13,997 | ||||||
New York G.O. Unlimited Bonds, Series D, | 5,000 | 5,976 | ||||||
New York G.O. Unlimited Refunding Bonds, Series B, Fiscal 2015, | 4,300 | 5,187 | ||||||
New York State Dormitory Authority Non State Supported Debt Revenue Bonds, Series B, School Districts Financing Program (Assured Guaranty Insured State Aid Withholding), | 5,000 | 5,739 | ||||||
New York State Dormitory Authority Personal Income Tax Education Revenue Refunding Bonds, Series B (AMBAC Insured), | 3,000 | 3,862 | ||||||
New York State Dormitory Authority Sales TRB, Series A, | 10,000 | 11,853 | ||||||
5.00%, 3/15/29 | 10,000 | 11,688 | ||||||
New York State Dormitory Education Authority Personal Income Tax Revenue Refunding Bonds, Series B (AMBAC Insured), | 10,040 | 12,953 | ||||||
New York State Dormitory Education Authority Personal Income TRB, Series B, | 16,000 | 18,699 |
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 42 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 86.9% – continued | ||||||||
New York – 14.5% – continued | ||||||||
New York State Environmental Facilities Corp. Clean & Drinking Water Revenue Bonds, Municipal Water Project Revolving Funds, | $5,000 | $5,681 | ||||||
New York State Environmental Facilities Corp. Clean & Drinking Water Revenue Bonds, Series C, Municipal Water Finance Revolving Funds, | 5,000 | 5,167 | ||||||
New York State Environmental Facilities Corp. Personal Income TRB, Series A, | 10,000 | 11,469 | ||||||
New York State Environmental Facilities Corp. Revenue Bonds, Series 2010, Master State Revolving Funds, | 2,000 | 2,445 | ||||||
New York State Local Government Assistance Corp. Revenue Refunding Bonds, Series E (AGM-CR G.O. of Corp. Insured), | 7,505 | 9,009 | ||||||
New York State Local Government Assistance Corp. Revenue Refunding Bonds, Series C (NATL-RE-IBC G.O. of Corp. Insured), | 4,425 | 4,800 | ||||||
New York State Thruway Transportation Authority Personal Income TRB, Series A, | 5,000 | 5,646 | ||||||
New York State Urban Development Corp. Personal Income TRB, Series D, | 10,000 | 12,052 | ||||||
New York State Urban Development Corp. Service Contract Revenue Refunding Bonds, Series D, | 1,850 | 2,119 | ||||||
Port Authority of New York & New Jersey Consolidated-One Hundred Eighty-Third Revenue Bonds, | 10,000 | 10,275 | ||||||
Port Authority of New York & New Jersey Consolidated-One Hundred Eighty-Third Revenue Bonds (AMT), | 1,130 | 1,328 | ||||||
Port Authority of New York & New Jersey Revenue Bonds, Series 179, | 15,000 | 15,073 | ||||||
5.00%, 12/1/26 | 11,355 | 13,662 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 86.9% – continued | ||||||||
New York – 14.5% – continued | ||||||||
Sales Tax Asset Receivable Corp. Revenue Bonds, Series A (AMBAC Insured), | $3,995 | $4,003 | ||||||
Sales Tax Asset Receivable Corp. Revenue Bonds, Series A (NATL-RE Insured), | 5,100 | 5,111 | ||||||
5.00%, 10/15/24 | 2,000 | 2,004 | ||||||
Triborough Bridge & Tunnel Authority General Revenue BANS, Series A, | 15,000 | 15,457 | ||||||
359,945 | ||||||||
North Carolina – 3.2% | ||||||||
Charlotte COPS, Series B, | 8,000 | 8,319 | ||||||
Charlotte G.O. Unlimited Refunding Bonds, Series B, | 3,500 | 4,221 | ||||||
Mecklenburg County G.O. Unlimited Refunding Bonds, Series A, | 5,495 | 6,630 | ||||||
North Carolina State Eastern Municipal Power Agency System Revenue Refunding Bonds, Series A, Prerefunded, | 3,465 | 4,098 | ||||||
North Carolina State G.O. Unlimited Refunding Bonds, Series A, | 28,305 | 29,230 | ||||||
North Carolina State G.O. Unlimited Refunding Bonds, Series B, | 1,500 | 1,549 | ||||||
5.00%, 6/1/23 | 10,000 | 12,325 | ||||||
North Carolina State G.O. Unlimited Refunding Bonds, Series E, | 5,000 | 5,976 | ||||||
North Carolina State Municipal Power Agency No. 1 Catawba Electric Revenue Refunding Bonds, Series A, | 2,000 | 2,234 | ||||||
North Carolina State Public Improvement G.O. Unlimited Bonds, Series A, | 5,000 | 6,023 | ||||||
80,605 | ||||||||
Ohio – 1.4% | ||||||||
Columbus G.O. Unlimited Refunding Bonds, Series 1, | 3,000 | 3,669 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 43 | TAX-EXEMPT FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
INTERMEDIATE TAX-EXEMPT FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 86.9% – continued | ||||||||
Ohio – 1.4% – continued | ||||||||
Ohio State Common Schools G.O. Unlimited Bonds, Series B, | $5,000 | $6,055 | ||||||
Ohio State Higher Education G.O. Unlimited Refunding Bonds, Series A, | 5,000 | 6,064 | ||||||
Ohio State Higher Education G.O. Unlimited Refunding Bonds, Series B, | 2,500 | 3,032 | ||||||
5.00%, 8/1/23 | 10,000 | 12,226 | ||||||
Ohio State Water Development Authority PCR Refunding Bonds, Series B, Loan Fund, Prerefunded, | 1,000 | 1,032 | ||||||
University of Cincinnati General Receipts Revenue Bonds, Series G (NATL-RE Insured), | 2,075 | 2,292 | ||||||
34,370 | ||||||||
Oregon – 1.3% | ||||||||
Oregon State Board of Education G.O. Unlimited Bonds, Series A, | 4,480 | 5,181 | ||||||
Oregon State Department of Transportation Highway User Tax Revenue Refunding Bonds, Series A, | 6,485 | 7,958 | ||||||
Oregon State Department of Transportation Highway User Tax Revenue Refunding Bonds, Series C, Senior Lien, | 10,000 | 11,268 | ||||||
Portland Community College District G.O. Unlimited Bonds, | 2,560 | 3,082 | ||||||
Tri-County Metropolitan Transportation District Payroll Tax & Grant Receipt Revenue Bonds, | 5,000 | 5,551 | ||||||
33,040 | ||||||||
Pennsylvania – 1.4% | ||||||||
Pennsylvania State Economic Development Financing Authority Revenue Bonds, Series A, UPMC, | 4,000 | 4,499 | ||||||
Pennsylvania State G.O. Unlimited Refunding Bonds, First Series, | 10,000 | 11,998 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 86.9% – continued | ||||||||
Pennsylvania – 1.4% – continued | ||||||||
5.00%, 7/1/22 | $5,000 | $5,999 | ||||||
5.00%, 7/1/22 | 5,000 | 5,999 | ||||||
Pennsylvania State Turnpike Commission Oil Franchise Tax Revenue Refunding Bonds, Series A (AMBAC Insured), | 5,075 | 5,538 | ||||||
34,033 | ||||||||
Rhode Island – 0.5% | ||||||||
Rhode Island State & Providence Plantations G.O. Unlimited Bonds, Series A, Consolidated Capital Development Loan, | 5,000 | 5,986 | ||||||
Rhode Island State & Providence Plantations G.O. Unlimited Bonds, Series B, Consolidated Capital Development Loan, | 2,630 | 3,034 | ||||||
Rhode Island State & Providence Plantations G.O. Unlimited Refunding Bonds, Series A, Consolidated Capital Development Loan, | 1,000 | 1,195 | ||||||
Rhode Island State Clean Water Finance Agency PCR Refunding Bonds, Subseries A, | 2,880 | 3,403 | ||||||
13,618 | ||||||||
South Carolina – 1.3% | ||||||||
Charleston County Capital Improvement Transportation Sales Tax G.O. Unlimited Bonds (State Aid Withholding), | 2,500 | 3,013 | ||||||
Piedmont Municipal Power Agency Electric Revenue Bonds, Series 2004, Unrefunded Balance (BHAC-CR MBIA Insured), | 4,960 | 6,046 | ||||||
South Carolina State Public Service Authority Revenue Bonds, Series A, Santee Cooper Project, | 12,000 | 13,683 | ||||||
South Carolina State Transportation Infrastructure Bank Revenue Refunding Bonds, Series A (BHAC-CR AMBAC Insured), | 10,000 | 10,459 | ||||||
33,201 |
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 44 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 86.9% – continued | ||||||||
Tennessee – 1.4% | ||||||||
Metropolitan Government of Nashville & Davidson County G.O. Unlimited Refunding & Improvement Bonds, Series A, | $10,275 | $12,150 | ||||||
Tennessee State G.O. Unlimited Refunding Bonds, Series A, | 11,825 | 14,331 | ||||||
Tennessee State G.O. Unlimited Refunding Bonds, Series B, | 5,000 | 6,178 | ||||||
Tennessee State Housing Development Agency Revenue Bonds, Series 1A (AMT), Home Ownership Program (G.O. of Agency Insured), | 455 | 482 | ||||||
4.05%, 7/1/20 | 460 | 495 | ||||||
4.13%, 7/1/21 | 1,600 | 1,709 | ||||||
35,345 | ||||||||
Texas – 6.3% | ||||||||
Brownsville Independent School District G.O. Unlimited Refunding Bonds, Series A (PSF-Gtd.), | 100 | 121 | ||||||
Cypress-Fairbanks Independent School District G.O. Unlimited Bonds, Series B-1 (PSF-Gtd.), | 8,450 | 9,051 | ||||||
Garland Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), | 10,000 | 11,823 | ||||||
Houston Combined Utility System Revenue Refunding Bonds, Series D, First Lien, | 2,500 | 2,868 | ||||||
Houston Higher Education Finance Corp. Revenue Bonds, Series B, Rice University Project, | 2,500 | 2,680 | ||||||
Houston Independent Schoolhouse District G.O. Limited Bonds (PSF-Gtd.), | 10,000 | 10,947 | ||||||
Houston Public Improvement G.O. Limited Refunding Bonds, Series D (AGM Insured), Prerefunded, | 1,590 | 1,697 | ||||||
Houston Public Improvement G.O. Limited Refunding Bonds, Series D, Unrefunded Balance (AGM Insured), | 10 | 11 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 86.9% – continued | ||||||||
Texas – 6.3% – continued | ||||||||
Humble Independent School Building District G.O. Unlimited Bonds | $10,000 | $10,848 | ||||||
Lower Colorado River Authority Revenue Refunding & Improvement Bonds, Series A, Prerefunded, | 35 | 42 | ||||||
Lower Colorado River Authority Revenue Refunding & Improvement Bonds, Series A, Unrefunded Balance, | 9,965 | 10,285 | ||||||
Lower Colorado River Authority Revenue Refunding Bonds, Prerefunded, | 5 | 6 | ||||||
Lower Colorado River Authority Revenue Refunding Bonds, Series 2012, Prerefunded, | 80 | 95 | ||||||
Lower Colorado River Authority Revenue Refunding Bonds, Series 2012-1, Prerefunded, | 5 | 6 | ||||||
Lower Colorado River Authority Revenue Refunding Bonds, Series 2014, Prerefunded, | 5 | 6 | ||||||
Lower Colorado River Authority Revenue Refunding Bonds, Series 2014, Unrefunded Balance, | 1,905 | 2,114 | ||||||
Northside Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), | 5,000 | 6,028 | ||||||
Prosper Independent School District G.O. Unlimited Bonds (PSF-Gtd.), Prerefunded, | 3,910 | 4,080 | ||||||
San Antonio Electric & Gas System Revenue Bonds, Series A, Prerefunded, | 12,655 | 13,455 | ||||||
Texas State A&M University Financing System Revenue Bonds, Series D, | 5,000 | 6,058 | ||||||
Texas State G.O. Unlimited TRANS, | 45,000 | 45,562 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 45 | TAX-EXEMPT FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
INTERMEDIATE TAX-EXEMPT FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 86.9% – continued | ||||||||
Texas – 6.3% – continued | ||||||||
Texas State PFA Revenue Refunding Bonds, Series B, Assessment Unemployment Compensation, | $5,000 | $5,309 | ||||||
University of Texas Financing System Revenue Bonds, Series A, | 5,375 | 6,638 | ||||||
University of Texas Permanent University Fund Revenue Refunding Bonds, Series B, | 5,000 | 6,168 | ||||||
155,898 | ||||||||
Utah – 0.4% | ||||||||
North Davis County Sewer Distric Revenue Bonds, | 2,265 | 2,749 | ||||||
Utah State G.O. Unlimited Bonds, | 5,000 | 6,046 | ||||||
8,795 | ||||||||
Vermont – 0.1% | ||||||||
Vermont State G.O. Unlimited Bonds, Series B, | 1,425 | 1,738 | ||||||
Virginia – 1.0% | ||||||||
Loudoun County Public Improvement G.O. Unlimited Bonds, Series A (State Aid Withholding), | 1,360 | 1,641 | ||||||
Richmond G.O. Unlimited Bonds, Series A (State Aid Withholding), | 5,000 | 6,065 | ||||||
Virginia State College Building Authority Educational Facilities Revenue Bonds, Series A, | 5,000 | 6,062 | ||||||
Virginia State G.O. Unlimited Bonds, Series A, | 1,000 | 1,177 | ||||||
Virginia State Public Building Authority Facilities Revenue Refunding Bonds, Series C, | 5,520 | 6,734 | ||||||
Virginia State Public Facilities Building Authority Revenue Refunding Bonds, Series B-3, | 1,520 | 1,726 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 86.9% – continued | ||||||||
Virginia – 1.0% – continued | ||||||||
Virginia State Resources Authority Clean Water Revenue Refunding Bonds, Subordinate Lien, State Revolving Fund, | $1,000 | $1,261 | ||||||
24,666 | ||||||||
Washington – 2.5% | ||||||||
Grant County Public Utility District No. 2 Electric Revenue Refunding Bonds, Series I, Escrowed To Maturity, | 4,035 | 4,171 | ||||||
King County School District No. 405 Bellevue G.O. Unlimited Bonds (AGM Insured), Prerefunded, | 5,000 | 5,235 | ||||||
North Thurston Public Schools G.O. Unlimited Refunding Bonds (School Board Guaranty Program), | 3,630 | 4,445 | ||||||
Port of Seattle Revenue Refunding Bonds, Series C (AMT), Intermediate Lien, | 1,000 | 1,133 | ||||||
University of Washington General Revenue Bonds, | 2,285 | 2,747 | ||||||
Washington State G.O. Unlimited Bonds, Series A (AGM Insured), Prerefunded, | 7,700 | 7,982 | ||||||
Washington State G.O. Unlimited Refunding Bonds, Series R-2013A, | 5,000 | 6,046 | ||||||
Washington State Health Care Facilities Authority Revenue Bonds, Series A, Providence Health & Services, | 4,000 | 4,360 | ||||||
Washington State Motor Vehicle Fuel Tax G.O. Unlimited Bonds, Series E (AMBAC Insured), Prerefunded, | 13,665 | 14,469 | ||||||
Washington State Motor Vehicle Fuel Tax G.O. Unlimited Refunding Bonds, Series B, | 10,000 | 12,298 | ||||||
62,886 |
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 46 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 86.9% – continued | ||||||||
Wisconsin – 0.2% | ||||||||
Wisconsin State G.O. Unlimited Refunding Bonds, Series 3, | $5,000 | $6,067 | ||||||
Total Municipal Bonds | ||||||||
(Cost $2,087,234) | 2,162,282 | |||||||
NUMBER OF SHARES | VALUE (000s) | |||||||
INVESTMENT COMPANIES – 10.8% | ||||||||
Northern Institutional Funds - Tax-Exempt Portfolio, 0.01% (3)(4) | 268,723,158 | $268,723 | ||||||
Total Investment Companies | ||||||||
(Cost $268,723) | 268,723 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
SHORT-TERM INVESTMENTS – 3.8% | ||||||||
California State RANS, 1.50%, 6/22/15 | $45,000 | $45,447 | ||||||
Connecticut State G.O. Unlimited Bonds, Series D, 2.00%, 6/15/15 | 10,000 | 10,133 | ||||||
Houston Independent School District G.O. Limited VRDB, Series A (PSF-Gtd.), 1.00%, Mandatory Put 6/1/15 | 10,000 | 10,040 | ||||||
Massachusetts State G.O. Limited RANS, Series B, 1.50%, 5/28/15 | 7,140 | 7,205 | ||||||
Milwaukee Cash Flow G.O. Unlimited Promissory Notes, Series R, | 15,000 | 15,030 | ||||||
Polk County G.O. Unlimited Refunding Bonds, Series C, 2.00%, 6/1/15 | 2,335 | 2,363 | ||||||
Tennessee State G.O. Unlimited Bonds,Series A, | 3,425 | 3,503 | ||||||
Total Short-Term Investments | ||||||||
(Cost $93,728) | 93,721 | |||||||
Total Investments – 101.5% | ||||||||
(Cost $2,449,685) | 2,524,726 | |||||||
Liabilities less Other Assets – (1.5)% |
| (37,248 | ) | |||||
NET ASSETS – 100.0% | $2,487,478 |
(1) | When-Issued Security. |
(2) | Zero coupon bond reflects effective yield on the date of purchase. |
(3) | At March 31, 2014, the value of the Fund’s investment in the Tax-Exempt Portfolio of the Northern Institutional Funds was approximately $304,888,000 with net sales of approximately $36,165,000 during the six months ended September 30, 2014. |
(4) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
Percentages shown are based on Net Assets.
At September 30, 2014, the credit quality distribution for the Fund as a percentage of investments including cash was:
QUALITY DISTRIBUTION* | % OF INVESTMENTS | |||
AAA | 22.6% | |||
AA | 50.0 | |||
A | 11.6 | |||
SP1+/MIG1 | 4.5 | |||
Not Rated | 0.7 | |||
Cash and Equivalents | 10.6 | |||
Total | 100.0% |
*Credit quality ratings are based on converting the available Moody’s, Standard & Poor’s, and/or Fitch ratings to a common numerical basis and averaging that result. If none of these three rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). The Standard & Poor’s short-term municipal rating of SP1 reflects a strong capacity to pay principal and interest (an issue determined to possess a very strong capacity to pay debt service is given a plus (+) designation). The Moody’s short-term municipal rating of MIG1 denotes superior credit quality (excellent protection is afforded by established cash flows, highly reliable liquidity support or demonstrated broad-based access to the market for refinancing). The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 47 | TAX-EXEMPT FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
INTERMEDIATE TAX-EXEMPT FUND continued | SEPTEMBER 30, 2014 (UNAUDITED) |
At September 30, 2014, the industry sectors for the Fund were:
INDUSTRY SECTOR | % OF INVESTMENTS | |||
Financials | 10.6% | |||
General | 16.2 | |||
General Obligation | 33.5 | |||
Transportation | 8.7 | |||
Water | 7.2 | |||
All other sectors less than 5% | 23.8 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Municipal Bonds | $– | $2,162,282 | (1) | $– | $2,162,282 | |||||||||||
Investment Companies | 268,723 | – | – | 268,723 | ||||||||||||
Short-Term Investments | – | 93,721 | – | 93,721 | ||||||||||||
Total Investments | $268,723 | $2,256,003 | $– | $2,524,726 |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 48 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SHORT – INRERMEDIATE TAX – EXEMPT FUND continued | SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% | ||||||||
Alabama – 0.0% | ||||||||
Alabama State Capital Improvement G.O. Unlimited Bonds, Series B, 4.00%, 8/1/15 | $150 | $155 | ||||||
Arizona – 3.3% | ||||||||
Arizona Board of Regents State University System Revenue Refunding Bonds, Series A, 4.00%, 7/1/15 | 565 | 581 | ||||||
Arizona State Department of Administration Refunding COPS, Series B, | 400 | 414 | ||||||
Arizona State Transportation Board Excise TRB, Maricopa County Regional Area Road, | 5,000 | 5,183 | ||||||
Arizona State Transportation Board Highway Revenue Bonds, 5.00%, 7/1/15 | 150 | 156 | ||||||
Arizona State Water Quality Infrastructure Finance Authority Revenue Bonds, Series A, 4.00%, 10/1/14 | 755 | 755 | ||||||
Maricopa County Community College District G.O. Unlimited Bonds, Series C, | 1,000 | 1,029 | ||||||
4.00%, 7/1/16 | 1,000 | 1,064 | ||||||
Maricopa County Community College District G.O. Unlimited Refunding Bonds, | 5,000 | 5,070 | ||||||
Maricopa County Unified School District No. 11 Peoria G.O. Unlimited Bonds, School Improvement Project, 5.00%, 7/1/16 | 4,250 | 4,584 | ||||||
Maricopa County Unified School District No. 4 Mesa G.O. Limited Refunding Bonds, | 2,000 | 2,256 | ||||||
Maricopa County Unified School District No. 60 Higley G.O. Unlimited Bonds, Series A, School Improvement Project of 2013, | 2,675 | 2,729 | ||||||
Peoria G.O. Unlimited Bonds, Series A, Projects of 2000 & 2005, 3.00%, 7/1/15 | 200 | 204 | ||||||
Phoenix Civic Improvement Corp. Transportation Excise TRB, 4.00%, 7/1/16 | 3,500 | 3,721 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
Arizona – 3.3% – continued | ||||||||
Phoenix Civic Improvement Corp. Water System Revenue Bonds, Junior Lien (NATL-RE Insured), | $8,500 | $8,807 | ||||||
Phoenix G.O. Unlimited Bonds, Series B, Prerefunded, | 5,000 | 5,182 | ||||||
Pima County Street & Highway Revenue Bonds (NATL-RE Insured), Prerefunded, | 300 | 309 | ||||||
Pima County Unified School District No. 10 Amphitheater G.O. Unlimited Bonds, Series D, School Improvement Projectof 2007, | 425 | 436 | ||||||
Pinal County Obligations Revenue Refunding Bonds, | 1,820 | 1,860 | ||||||
Regional Public Transportation Authority Excise TRB, Series A, Maricopa County Public Transportation, | 400 | 415 | ||||||
Scottsdale G.O. Unlimited Bonds, Series 2008A, Project of 2000, 3.50%, 7/1/15 | 100 | 103 | ||||||
Tempe Union High School District No. 213 G.O. Unlimited Bonds, School Improvement Project of 2008, | 300 | 307 | ||||||
Tucson Water System Revenue Bonds, 5.00%, 7/1/16 | 1,275 | 1,379 | ||||||
46,544 | ||||||||
California – 5.6% | ||||||||
Bay Area Toll Bridge Authority Variable Revenue Bonds, Series B, 1.50%, Mandatory Put 4/2/18 | 1,000 | 1,012 | ||||||
California State Department of Water Resources Supply Revenue Bonds, Series L, | 10,000 | 10,285 | ||||||
California State G.O. Unlimited Refunding Bonds, | 545 | 547 | ||||||
California State Health Facilities Financing Authority Revenue Bonds, Series C, Providence Health & Services, Escrowedto Maturity, | 500 | 500 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 49 | TAX-EXEMPT FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SHORT-INTERMEDIATE TAX-EXEMPT FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
California – 5.6% – continued | ||||||||
California State University Systemwide Revenue Bonds, Series A, | $120 | $120 | ||||||
5.00%, 11/1/14 | 350 | 352 | ||||||
California State Various Purpose G.O. Unlimited Bonds, | 250 | 252 | ||||||
5.00%, 10/1/18 | 10,000 | 11,587 | ||||||
California State Various Purpose G.O. Unlimited Refunding Bonds, 5.00%, 11/1/20 | 8,000 | 9,599 | ||||||
5.00%, 12/1/21 | 5,000 | 6,055 | ||||||
Fairfield-Suisun Unified School District G.O. Unlimited Refunding Bonds, | 2,065 | 2,260 | ||||||
Los Angeles Department of Water & Power System Revenue Bonds, Series A, | 5,000 | 5,918 | ||||||
Los Angeles Unified School District G.O. Unlimited Bonds, Series C, Election of 2002 (AGM Insured), | 200 | 206 | ||||||
Los Angeles Unified School District G.O. Unlimited Bonds, Series I, | 5,000 | 5,184 | ||||||
Los Angeles Unified School District G.O. Unlimited Bonds, Series KY, | 200 | 207 | ||||||
Los Angeles Unified School District G.O. Unlimited Refunding Bonds, Series B, | 10,000 | 12,083 | ||||||
San Francisco Bay Area Toll Bridge Authority Variable Revenue Bonds, Series C3, | 6,725 | 6,837 | ||||||
San Francisco City & County Road Repaving & Street Safety G.O. Unlimited Bonds, Series C, | 1,385 | 1,599 | ||||||
San Juan Unified School District G.O. Unlimited Bonds, | 1,125 | 1,350 | ||||||
San Juan Unified School District G.O. Unlimited Bonds, Series B, Electionof 2012, | 2,215 | 2,394 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
California – 5.6% – continued | ||||||||
University of California Revenue Bonds, Series O, | $195 | $201 | ||||||
78,548 | ||||||||
Colorado – 0.8% | ||||||||
Colorado State Board for Community Colleges & Occupational Education Systemwide Revenue Refunding Bonds, Series A (State Higher Education Intercept Program), | 200 | 200 | ||||||
Colorado State Refunding COPS, Series A, UCDHSC Fitzsimons Academic Projects, | 1,875 | 2,119 | ||||||
Denver City & County Excise Tax Revenue Refunding Bonds (AGM Insured), | 100 | 101 | ||||||
Denver City & County Excise Tax Revenue Refunding Bonds, Series A (Assured Guaranty Insured), | 5,000 | 6,069 | ||||||
Denver City & County School District No. 1 G.O. Unlimited Refunding Bonds (State Aid Withholding), | 350 | 352 | ||||||
Douglas County School District No. RE-1 Douglas & Elbert Counties Improvement G.O. Unlimited Bonds, Series B (AGM Insured State Aid Withholding), Prerefunded, | 100 | 101 | ||||||
Larimer Weld & Boulder County School District No. R-2J Thompson G.O. Unlimited Refunding Bonds (AGM Insured), | 250 | 265 | ||||||
Platte River Power Authority Revenue Bonds, Series GG (AGM Insured), | 250 | 258 | ||||||
Regional Transportation District Transit Vehicles COPS, Series A, (AMBAC Insured), | 1,590 | 1,741 | ||||||
11,206 | ||||||||
Connecticut – 1.4% | ||||||||
Connecticut State G.O. Unlimited Bonds, Series A (AGM Insured), | 100 | 104 | ||||||
5.00%, 12/15/15 | 250 | 264 |
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 50 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
Connecticut – 1.4% – continued | ||||||||
Connecticut State G.O. Unlimited Bonds, Series C, | $500 | $502 | ||||||
4.10%, 11/1/15 | 100 | 104 | ||||||
Connecticut State G.O. Unlimited Refunding Bonds, Series B, | 5,520 | 6,137 | ||||||
Connecticut State GAAP Conversion G.O. Unlimited Bonds, Series A, | 8,000 | 9,570 | ||||||
Connecticut State Special Tax Obligation Transportation Infrastructure Revenue Refunding Bonds, Series 1, Second Lien, | 2,500 | 2,758 | ||||||
Connecticut State Special Tax Obligation Transportation Infrastructure Revenue Refunding Bonds, Series B, | 100 | 101 | ||||||
Norwalk G.O. Unlimited Refunding Bonds, Series B, | 50 | 51 | ||||||
19,591 | ||||||||
Delaware – 1.3% | ||||||||
Delaware State G.O. Unlimited Bonds, Series 2009C, | 15,000 | 15,727 | ||||||
University of Delaware Revenue Refunding Bonds, Series B, | 1,250 | 1,254 | ||||||
5.00%, 11/1/15 | 1,000 | 1,052 | ||||||
18,033 | ||||||||
Florida – 5.6% | ||||||||
Broward County G.O. Unlimited Refunding Bonds, Series A, | 2,525 | 2,675 | ||||||
Citizens Property Insurance Corp. High Risk Revenue Bonds, Series A1, Senior Secured, | 11,265 | 11,627 | ||||||
Citizens Property Insurance Corp. High Risk Senior Secured Revenue Bonds, Series A-1, | 210 | 215 | ||||||
Clay County Infrastructure Sales Surtax Revenue Bonds (Assured Guaranty Insured), | 4,600 | 5,130 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
Florida – 5.6% – continued | ||||||||
Florida State Board of Public Education Capital Outlay G.O. Unlimited Refunding Bonds, Series A, | $5,430 | $5,607 | ||||||
Florida State Board of Public Education Capital Outlay G.O. Unlimited Refunding Bonds, Series C, | 10,100 | 11,281 | ||||||
Florida State Department of Transportation G.O. Unlimited Refunding Bonds, Series B, Right of Way, | 500 | 517 | ||||||
Florida State Hurricane Catastrophe Fund Finance Corp. Revenue Bonds, Series A, Escrowed to Maturity, | 10,000 | 10,361 | ||||||
Florida State Municipal Power Agency All Requirements Revenue Bonds, Series A, | 4,000 | 4,350 | ||||||
Gainesville Utilities System Revenue Bonds, Series A (AGM Insured), Prerefunded, | 200 | 210 | ||||||
Jacksonville Special Revenue Bonds, Series B-1A, | 390 | 390 | ||||||
Jacksonville Special Revenue Refunding Bonds, Series D, | 155 | 162 | ||||||
JEA Electric System Revenue Bonds, Series Three A, | 940 | 1,062 | ||||||
JEA Electric System Revenue Bonds, Series Three D-1, | 250 | 260 | ||||||
JEA Electric System Revenue Bonds, Subseries A, | 250 | 262 | ||||||
JEA Electric System Revenue Bonds, Subseries B, | 235 | 246 | ||||||
JEA Water & Sewer System Revenue Bonds, Series B, Escrowed to Maturity, | 165 | 173 | ||||||
JEA Water & Sewer System Revenue Bonds, Series C, | 150 | 155 | ||||||
Lee County School Board COPS, Series A (AGM Insured), | 250 | 267 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 51 | TAX-EXEMPT FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SHORT-INTERMEDIATE TAX-EXEMPT FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
Florida – 5.6% – continued | ||||||||
Miami-Dade County G.O. Unlimited Bonds, Series B, Building Better Communities Program, | $5,000 | $5,182 | ||||||
Palm Beach County Public Improvement Revenue Bonds, | 200 | 205 | ||||||
Palm Beach County School Board Refunding COPS, Series E (AMBAC Insured), | 5,000 | 5,219 | ||||||
Reedy Creek Improvement District Utilities Revenue Refunding Bonds, Series 2 (AMBAC Insured), | 5,730 | 5,997 | ||||||
Sarasota County Infrastructure Sales Surtax Revenue Bonds, Series A, | 1,500 | 1,638 | ||||||
Sarasota County Infrastructure Sales Surtax Revenue Bonds, Series B, | 2,535 | 2,535 | ||||||
Sarasota County Infrastructure Sales Surtax Revenue Refunding Bonds, | 1,000 | 1,200 | ||||||
Tallahassee Blueprint 2000 Intergovernmental Agency Sales TRB (NATL-RE Insured), | 500 | 500 | ||||||
Volusia County Gas TRB (AGM Insured), Prerefunded, | 850 | 850 | ||||||
78,276 | ||||||||
Georgia – 2.8% | ||||||||
Cherokee County School System G.O. Unlimited Bonds, Series A (State Aid Withholding), | 2,160 | 2,573 | ||||||
Cherokee County School System G.O. Unlimited Refunding Bonds, Series B (State Aid Withholding), | 1,000 | 1,191 | ||||||
5.00%, 8/1/21 | 3,285 | 3,953 | ||||||
Clayton County Water Authority & Sewage Revenue Refunding Bonds, | 500 | 528 | ||||||
DeKalb County Water & Sewer Revenue Refunding Bonds, 2nd Resolution, | 1,250 | 1,479 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
Georgia – 2.8% – continued | ||||||||
DeKalb County Water & Sewerage Revenue Bonds, Series A, | $100 | $103 | ||||||
DeKalb Water & Sewerage Revenue Bonds, Series A, | 835 | 867 | ||||||
Fulton County Facilities Corp. COPS, Public Purpose Project, | 2,250 | 2,360 | ||||||
5.00%, 11/1/16 | 2,280 | 2,478 | ||||||
5.00%, 11/1/18 | 2,505 | 2,867 | ||||||
Georgia State G.O. Unlimited Bonds, Series F, | 5,000 | 5,021 | ||||||
Georgia State Road & Tollway Authority Federal Highway Grant Anticipation Revenue Bonds, Series A, | 5,000 | 5,716 | ||||||
Henry County School District G.O. Unlimited Bonds (State Aid Withholding), | 100 | 103 | ||||||
Henry County School District G.O. Unlimited Refunding Bonds (State Aid Withholding), | 5,270 | 6,197 | ||||||
Metropolitan Atlanta Rapid Transit Authority Sales Tax Revenue Refunding Bonds, Series A, Third Indenture (NATL Insured), | 4,000 | 4,144 | ||||||
39,580 | ||||||||
Hawaii – 1.0% | ||||||||
Hawaii State G.O. Unlimited Bonds, Series EH, | 3,810 | 4,494 | ||||||
Hawaii State G.O. Unlimited Refunding Bonds, Series CY (AGM Insured), | 125 | 127 | ||||||
Hawaii State G.O. Unlimited Refunding Bonds, Series EF, | 5,000 | 6,051 | ||||||
Hawaii State G.O. Unlimited Refunding Bonds, Series EJ, | 100 | 102 | ||||||
Honolulu City & County G.O. Unlimited Bonds, Series A (NATL-RE Insured), Prerefunded, | 300 | 311 |
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 52 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
Hawaii – 1.0% – continued | ||||||||
Honolulu City & County G.O. Unlimited Bonds, Series B (AGM Insured), | $240 | $249 | ||||||
Honolulu City & County G.O. Unlimited Bonds, Series C (NATL-RE Insured), Prerefunded, | 175 | 181 | ||||||
Honolulu City & County G.O. Unlimited Bonds, Series F, | 2,000 | 2,089 | ||||||
13,604 | ||||||||
Idaho – 0.1% | ||||||||
Twin Falls County School District No. 411 G.O. Unlimited Refunding Bonds, Series C (Idaho Salestax Guaranty Insured), | 1,945 | 2,189 | ||||||
Illinois – 3.7% | ||||||||
Chicago Metropolitan Water Reclamation District of Greater Chicago Capital Improvement G.O. Limited Tax Bonds, | 100 | 106 | ||||||
Chicago Metropolitan Water Reclamation District of Greater Chicago G.O. Unlimited Refunding Bonds, Series A, | 500 | 522 | ||||||
Cook County Community College District No. 504 G.O. Unlimited Bonds, Alternative Revenue Source, | 1,150 | 1,373 | ||||||
Cook County Community High School District No. 228 Bremen G.O. Limited Bonds, Series B, | 1,500 | 1,677 | ||||||
Cook County Forest Preservation District G.O. Unlimited Bonds (AGM-CR AMBAC Insured), Prerefunded, | 250 | 252 | ||||||
Cook County School District No. 144 Prairie Hills G.O. Limited Bonds, Series A (AGM Insured), Prerefunded, | 500 | 603 | ||||||
DuPage County Community High School District No. 108 G.O. Unlimited Refunding Bonds, | 1,000 | 1,111 | ||||||
Grundy & Will Counties Community Unit School District No. 1 G.O. Unlimited Bonds, | 1,120 | 1,197 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
Illinois – 3.7% – continued | ||||||||
Illinois State Build Sales TRB, | $3,500 | $3,771 | ||||||
Illinois State Development Finance Authority Variable Revenue Bonds, St. Vincents De Paul, | 2,000 | 2,027 | ||||||
Illinois State Finance Authority Revenue Bonds, Clean Water Initiative, | 5,440 | 6,348 | ||||||
Illinois State Finance Authority Revenue Bonds, Series A, Art Institute Chicago, | 4,000 | 4,080 | ||||||
Illinois State Finance Authority Revenue Bonds, Series A-1, Advocate Health Care, | 1,295 | 1,508 | ||||||
Illinois State Toll Highway Authority Revenue Refunding Bonds, Series A, | 3,500 | 4,136 | ||||||
Illinois State Toll Highway Authority Senior Priority Revenue Bonds, Series A (AGM Insured), Prerefunded, | 400 | 415 | ||||||
Illinois State Toll Highway Authority Senior Revenue Refunding Bonds, Series B, | 3,000 | 3,404 | ||||||
5.00%, 12/1/18 | 1,000 | 1,161 | ||||||
Illinois State Unemployment Insurance Fund Building Receipts Revenue Bonds, Series A, | 750 | 776 | ||||||
Illinois State Unemployment Insurance Fund Building Receipts Revenue Bonds, Series B, | 3,500 | 3,615 | ||||||
Kane County II Community Unit School District No. 101 Batavia G.O. Unlimited Refunding Bonds, | 2,250 | 2,625 | ||||||
Lake & McHenry Counties Community Unit School District No. 118 G.O. Unlimited Bonds, Series A (AGM Insured), Prerefunded, | 560 | 567 | ||||||
Sangamon County School District No. 186 Springfield G.O. Limited Refunding Bonds, Series B (BAM Insured), | 1,330 | 1,467 | ||||||
5.00%, 2/1/21 | 6,260 | 7,197 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 53 | TAX-EXEMPT FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SHORT-INTERMEDIATE TAX-EXEMPT FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
Illinois – 3.7% – continued | ||||||||
Schaumburg G.O. Unlimited Bonds, Series B (NATL Insured), Prerefunded, | $750 | $756 | ||||||
5.25%, 12/1/14 | 225 | 227 | ||||||
Tinley Park G.O. Unlimited Bonds, | 405 | 407 | ||||||
4.00%, 12/1/15 | 425 | 442 | ||||||
4.00%, 12/1/17 | 470 | 513 | ||||||
Winnebago County Public Safety Sales Tax G.O. Unlimited Bonds, Series A (NATL-RE Insured), Prerefunded, | 300 | 311 | ||||||
52,594 | ||||||||
Indiana – 1.1% | ||||||||
Indiana Finance Authority Water Utility Revenue Bonds, Second Lien, Citizens Energy Group, | 1,750 | 1,769 | ||||||
Indiana Finance CWA Authority Wastewater Utility Revenue Bonds, Series A, First Lien, | 1,380 | 1,380 | ||||||
Indiana State Finance Authority Highway Revenue Refunding Bonds, Series A, | 100 | 101 | ||||||
South Bend Community School Corp. Revenue Refunding Bonds, First Mortgage, 2002 School Building (NATL Insured State Aid Withholding), | 125 | 129 | ||||||
Whiting Environmental Facilities Variable Revenue Bonds, BP Products North America, | 11,500 | 11,496 | ||||||
14,875 | ||||||||
Kansas – 0.3% | ||||||||
Butler County Improvement Unified School District No. 490 G.O. Unlimited Bonds, Series B (AGM Insured), Prerefunded, | 395 | 413 | ||||||
Kansas State Department of Transportation Highway Revenue Refunding Bonds, Series A, | 1,000 | 1,044 | ||||||
Kansas State Development Finance Authority Revenue Bonds, Series K, Department of Commerce Impact Program, | 250 | 252 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
Kansas – 0.3% – continued | ||||||||
Olathe G.O. Unlimited Bonds, Series 210, | $185 | $185 | ||||||
Wichita G.O. Unlimited Refunding Bonds, Series C, | 2,230 | 2,580 | ||||||
4,474 | ||||||||
Kentucky – 0.8% | ||||||||
Kentucky State Property & Buildings Commission Revenue Bonds, Series A, Project No. 95, | 5,805 | 6,040 | ||||||
Kentucky State Turnpike Authority Economic Development Road Revenue Bonds, Series A, Revitalization Projects, | 4,500 | 5,170 | ||||||
11,210 | ||||||||
Louisiana – 0.0% | ||||||||
Lafayette Utilities Revenue Bonds (NATL-RE Insured), | 250 | 251 | ||||||
Maryland – 5.1% | ||||||||
Anne Arundel County Consolidated General Improvement G.O. Limited Bonds, | 380 | 388 | ||||||
5.00%, 3/1/15 | 250 | 255 | ||||||
5.00%, 4/1/18 | 2,915 | 3,332 | ||||||
Anne Arundel County Consolidated Improvements G.O. Limited Bonds, | 150 | 154 | ||||||
Baltimore Consolidated Public Improvement G.O. Unlimited Bonds, Series A, | 250 | 250 | ||||||
Baltimore Consolidated Public Improvement G.O. Unlimited Refunding Bonds, Series C (NATL Insured), | 200 | 211 | ||||||
Baltimore County Consolidated Public Improvement G.O. Unlimited Bonds, | 5,000 | 5,905 | ||||||
Baltimore County Consolidated Public Improvement G.O. Unlimited Bonds, Series A, | 500 | 526 | ||||||
Baltimore County Public Improvement G.O. Unlimited Bonds, | 5,000 | 5,842 |
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 54 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
Maryland – 5.1% – continued | ||||||||
Baltimore Wastewater Projects Revenue Bonds, Series C, | $1,330 | $1,596 | ||||||
Baltimore Water Project Revenue Bonds, Series A, | 1,000 | 1,189 | ||||||
Charles County Consolidated Public Improvement G.O. Unlimited Bonds, | 1,470 | 1,651 | ||||||
5.00%, 10/1/20 | 1,935 | 2,328 | ||||||
5.00%, 10/1/21 | 2,035 | 2,472 | ||||||
Charles County G.O. Unlimited Refunding Bonds, Prerefunded, | 165 | 168 | ||||||
Frederick County G.O. Unlimited Refunding Bonds, Series C, Escrowedto Maturity, | 50 | 52 | ||||||
Frederick County G.O. Unlimited Refunding Bonds, Series C, Unrefunded Balance, | 6,325 | 6,607 | ||||||
Frederick County Public Facilities G.O. Unlimited Refunding Bonds, Escrowed to Maturity, | 235 | 269 | ||||||
Frederick County Public Facilities G.O. Unlimited Refunding Bonds, Unrefunded Balance, | 4,985 | 5,681 | ||||||
Howard County Consolidated Public Improvement G.O. Unlimited Refunding Bonds, Series A, | 3,735 | 4,361 | ||||||
Howard County G.O. Unlimited Refunding Bonds, Series A, Consolidated Public Improvement Project, | 150 | 156 | ||||||
Maryland State & Local Facilities Loan Capital Improvement G.O. Unlimited Bonds, Series A, Prerefunded, | 150 | 158 | ||||||
Maryland State & Local Facilities Loan G.O. Unlimited Bonds, First Series, Prerefunded, | 150 | 166 | ||||||
Maryland State & Local Facilities Loan G.O. Unlimited Bonds, Second Series B, | 15,000 | 16,278 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
Maryland – 5.1% – continued | ||||||||
Maryland State & Local Facilities Loan G.O. Unlimited Refunding Bonds, First Series C, | $5,000 | $6,001 | ||||||
Maryland State & Local Facilities Loan G.O. Unlimited Refunding Bonds, Second Series, | 3,000 | 3,508 | ||||||
Maryland State Department of Transportation Consolidated Revenue Bonds, Second Issue, | 200 | 207 | ||||||
Maryland State Department of Transportation Consolidated Revenue Bonds, | 100 | 102 | ||||||
Maryland State G.O. Unlimited Refunding Bonds, Series 2-C, | 1,350 | 1,638 | ||||||
Montgomery County Consolidated Public Improvement G.O. Unlimited Refunding Bonds, Series A, | 150 | 158 | ||||||
Montgomery County Public Improvement G.O. Unlimited Bonds, Series A, | 100 | 104 | ||||||
71,713 | ||||||||
Massachusetts – 1.4% | ||||||||
Boston G.O. Unlimited Bonds, Series A, | 180 | 184 | ||||||
Massachusetts State Consolidated Loan G.O. Limited Bonds, Series A, | 310 | 336 | ||||||
5.00%, 4/1/19 | 3,500 | 4,094 | ||||||
Massachusetts State Consolidated Loan G.O. Limited Bonds, Series C, | 200 | 209 | ||||||
5.00%, 12/1/15 | 200 | 211 | ||||||
Massachusetts State Consolidated Loan G.O. Limited Bonds, Series C (NATL G.O. of Commonwealth Insured), | 525 | 528 | ||||||
Massachusetts State Consolidated Loan G.O. Limited Bonds, Series C, Prerefunded, | 1,300 | 1,358 | ||||||
5.00%, 9/1/15 | 100 | 105 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 55 | TAX-EXEMPT FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SHORT-INTERMEDIATE TAX-EXEMPT FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
Massachusetts – 1.4% – continued | ||||||||
Massachusetts State Department of Transportation Metropolitan Highway System Revenue Bonds, Senior Series B, | $3,500 | $3,543 | ||||||
Massachusetts State G.O. Limited Bonds, Series B, Consolidated Loan, | 300 | 308 | ||||||
Massachusetts State G.O. Limited Refunding Bonds, Series B, | 4,200 | 4,843 | ||||||
5.00%, 8/1/19 | 1,000 | 1,178 | ||||||
Massachusetts State G.O. Unlimited Refunding Bonds, Series B, | 250 | 261 | ||||||
Massachusetts State School Building Authority Sales TRB, Senior Series B, | 1,000 | 1,050 | ||||||
Massachusetts State School Building Authority Sales TRB, Series A (AGM Insured), Prerefunded, | 395 | 412 | ||||||
Massachusetts State Water Pollution Abatement Trust Revenue Refunding Bonds, Pool Program, | 540 | 586 | ||||||
19,206 | ||||||||
Michigan – 1.2% | ||||||||
Eaton Rapids Public Schools G.O. Unlimited Refunding Bonds (Q-SBLF Insured), | 800 | 936 | ||||||
Kentwood Public Schools G.O. Unlimited Refunding Bonds, | 2,340 | 2,576 | ||||||
Michigan State Building Authority Facilities Program Revenue Refunding Bonds, Series I-A, | 1,100 | 1,231 | ||||||
Michigan State Building Authority Revenue Refunding Bonds, Series I, Facilities Program, | 150 | 158 | ||||||
Michigan State Finance Authority Clean Water Revolving Fund Revenue Refunding Bonds, | 2,805 | 3,353 | ||||||
Michigan State Finance Authority Revenue Refunding Bonds, State Revolving Fund, | 2,755 | 3,249 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
Michigan – 1.2% – continued | ||||||||
Michigan State Finance Authority Unemployment Obligation Assessment Revenue Refunding Bonds, Series B, | $1,850 | $1,994 | ||||||
Michigan State Hospital Finance Authority Revenue Bonds, Chelsea Community Hospital Obligated, Prerefunded, | 300 | 309 | ||||||
Michigan State Municipal Bond Authority Clean Water Revolving Fund Revenue Bonds, | 1,635 | 1,928 | ||||||
Western Michigan University General Revenue Refunding Bonds, | 500 | 515 | ||||||
5.00%, 11/15/19 | 850 | 989 | ||||||
17,238 | ||||||||
Minnesota – 2.7% | ||||||||
Buffalo Independent School District No. 877 G.O. Unlimited Refunding Bonds, Series A (School District Credit Program Insured), | 825 | 871 | ||||||
Edina Independent School Building District No. 273 G.O. Unlimited Refunding Bonds, Series B (School District Credit Program Insured), | 4,310 | 4,891 | ||||||
Metropolitan Council Minneapolis- Saintpaul Metropolitan Area G.O. Unlimited Refunding Bonds, Series C, Transit Capital, | 240 | 244 | ||||||
Minnesota State Trunk Highway G.O. Unlimited Bonds, Series B, | 2,030 | 2,463 | ||||||
Minnesota State Various Purpose G.O. Unlimited Refunding Bonds, Series D, | 500 | 520 | ||||||
Minnesota State Various Purpose G.O. Unlimited Refunding Bonds, Series F, | 10,000 | 10,323 | ||||||
5.00%, 10/1/19 | 10,075 | 11,926 | ||||||
Rochester Independent School Building District No. 535 G.O. Unlimited Refunding Bonds, Series A (School District Credit Program), | 120 | 128 |
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 56 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED)
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
Minnesota – 2.7% – continued | ||||||||
Rochester Wastewater G.O. Unlimited Refunding Bonds, Series A, | $1,810 | $2,115 | ||||||
St. Paul Metropolitan Area Council Minneapolis Wastewater G.O. Unlimited Refunding Bonds, Series E, | 3,350 | 4,075 | ||||||
37,556 | ||||||||
Missouri – 0.0% | ||||||||
Belton School District No. 124 G.O. Unlimited Bonds, Series B (State Aid Direct Deposit Program), | 100 | 102 | ||||||
Kansas City Water Revenue Refunding & Improvement Bonds, Series A, | 100 | 101 | ||||||
St. Louis Board of Education G.O. Unlimited Refunding Bonds (NATL-RE Insured State Aid Direct Deposit Program), | 455 | 466 | ||||||
669 | ||||||||
Nebraska – 0.0% | ||||||||
Lancaster County Public School District No. 1 G.O. Limited Bonds, | 150 | 152 | ||||||
Lincoln Electric System Revenue Refunding Bonds, | 100 | 103 | ||||||
255 | ||||||||
Nevada – 1.1% | ||||||||
Clark County School District Building G.O. Limited Bonds, Series B (AMBAC Insured), | 2,000 | 2,069 | ||||||
Clark County School District G.O. Limited Bonds, Series C (AGM Insured), | 255 | 270 | ||||||
5.00%, 6/15/18 | 2,000 | 2,113 | ||||||
Clark County School District G.O. Limited Bonds, Series C (AGM Insured), Prerefunded, | 3,825 | 4,047 | ||||||
5.00%, 12/15/15 | 1,000 | 1,058 | ||||||
5.00%, 12/15/15 | 300 | 317 | ||||||
Clark County School District G.O. Limited Tax Bonds, Series B, | 110 | 114 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
Nevada – 1.1% – continued | ||||||||
Clark County Transportation G.O. Limited Refunding Bonds, Series A (AMBAC Insured), Prerefunded, | $3,000 | $3,025 | ||||||
Las Vegas Valley Water District G.O. Limited Tax Refunding Bonds, Series D, | 750 | 774 | ||||||
Nevada State University System G.O. Limited Refunding Bonds, Series G (NATL-RE Insured), | 250 | 260 | ||||||
Washoe County School District G.O. Limited Tax Refunding Bonds, Series A, | 1,825 | 2,050 | ||||||
16,097 | ||||||||
New Hampshire – 0.1% | ||||||||
Portsmouth Capital Improvement Loan G.O. Unlimited Bonds, | 1,590 | 1,921 | ||||||
New Jersey – 4.8% | ||||||||
Elizabeth G.O. Unlimited Bonds, | 1,620 | 1,669 | ||||||
Gloucester County G.O. Unlimited Bonds, | 100 | 102 | ||||||
Monmouth County G.O. Unlimited Bonds, | 3,515 | 3,955 | ||||||
Monmouth County Improvement Authority Lease Revenue Bonds, Capital Equipment Pooled Project, | 150 | 156 | ||||||
New Jersey Environmental Infrastructure Trust Revenue Bonds, | 2,280 | 2,737 | ||||||
New Jersey Environmental Infrastructure Trust Revenue Bonds, Series A, Unrefunded Balance, | 120 | 125 | ||||||
New Jersey State Economic Development Authority Revenue Refunding Bonds, Series GG, School Facilities (State Appropriation Insured), Escrowed to Maturity, | 5,000 | 5,223 | ||||||
New Jersey State Economic Development Authority Revenue Refunding Bonds, Series PP, School Facilities Construction Project, | 15,000 | 16,998 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 57 | TAX-EXEMPT FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SHORT-INTERMEDIATE TAX-EXEMPT FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
New Jersey – 4.8% – continued | ||||||||
New Jersey State EDA School Facilities Construction Revenue Bonds, Series O, Prerefunded, | $375 | $383 | ||||||
New Jersey State EDA School Facilities Construction Revenue Refunding Bonds, Series EE, | 10,600 | 11,942 | ||||||
New Jersey State G.O. Unlimited Refunding Bonds, | 3,200 | 3,326 | ||||||
New Jersey State Transportation System Trust Fund Authority Revenue Bonds, Series B, Transportation System (NATL-RE Insured), | 315 | 318 | ||||||
New Jersey State Transportation System Trust Fund Authority Revenue Bonds, Series C (AGM Insured), Escrowed to Maturity, | 225 | 228 | ||||||
New Jersey State Transportation System Trust Fund Authority Revenue Bonds, Series C (NATL-RE FGIC Insured), Prerefunded, | 4,710 | 4,881 | ||||||
New Jersey State Transportation System Trust Fund Authority Revenue Bonds, Series D (AMBAC Insured), Prerefunded, | 4,000 | 4,138 | ||||||
New Jersey State Transportation Trust Fund Authority Revenue Bonds, Series B, | 2,250 | 2,550 | ||||||
Ocean County G.O. Unlimited Refunding Bonds (NATL-RE Insured), | 100 | 105 | ||||||
Union County G.O. Unlimited Bonds, | 4,315 | 4,655 | ||||||
Union County G.O. Unlimited Bonds, Series B, | 2,987 | 3,210 | ||||||
Union County Vocational Technology School G.O. Unlimited Bonds (School Board Resource Fund Insured), | 460 | 494 | ||||||
67,195 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
New Mexico – 1.9% | ||||||||
Albuquerque Bernalillo County Water Utility Authority Joint Water & Sewer Revenue Refunding Bonds, Series B, | $1,675 | $2,017 | ||||||
Albuquerque G.O. Unlimited Bonds, Series A, | 1,590 | 1,624 | ||||||
Albuquerque General Purpose G.O. Unlimited Bonds, Series A, | 5,050 | 5,518 | ||||||
New Mexico State Finance Authority Revenue Bonds, Series A, Senior Lien, Public Project Revolving Fund, | 100 | 103 | ||||||
New Mexico State Finance Authority Transportation Revenue Refunding Bonds, Series A-2, Subordinate Lien, | 400 | 423 | ||||||
New Mexico State Severance Tax Revenue Refunding Bonds, Series D, | 10,000 | 11,194 | ||||||
New Mexico State University Improvement Refunding Revenue Bonds, Series B, | 2,615 | 2,984 | ||||||
New Mexico State University Revenue Refunding & Improvement Bonds, Series B, | 2,710 | 3,160 | ||||||
27,023 | ||||||||
New York – 5.4% | ||||||||
Long Beach City School District G.O. Unlimited Bonds (State Aid Withholding), | 4,015 | 4,299 | ||||||
Metropolitan Transportation Authority Revenue Bonds, Series A, | 1,000 | 1,159 | ||||||
Metropolitan Transportation Authority Revenue Bonds, Series B-1, | 135 | 142 | ||||||
Metropolitan Transportation Authority Revenue Bonds, Series G, | 2,235 | 2,530 | ||||||
Metropolitan Transportation Authority Revenue Refunding Bonds, Series A (AMBAC Insured), | 450 | 453 |
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 58 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED)
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
New York – 5.4% – continued | ||||||||
Metropolitan Transportation Authority Revenue Refunding Bonds, Series F, | $150 | $150 | ||||||
Monroe County Industrial Development Agency School Facilities Revenue Bonds, Rochester Schools Modernization (State Aid Withholding), | 705 | 784 | ||||||
5.00%, 5/1/18 | 1,000 | 1,143 | ||||||
New York City G.O. Unlimited Bonds, Series G, | 350 | 364 | ||||||
5.00%, 8/1/19 | 5,000 | 5,851 | ||||||
New York City G.O. Unlimited Bonds, Subseries G-1, | 1,475 | 1,750 | ||||||
New York City G.O. Unlimited Bonds, Series H-1, | 5,000 | 5,337 | ||||||
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Series A, Prerefunded, Escrowed to Maturity, | 3,935 | 4,139 | ||||||
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Series A, Unrefunded Balance, | 1,065 | 1,121 | ||||||
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries B-3, | 225 | 226 | ||||||
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries C-1, | 210 | 211 | ||||||
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries E, | 490 | 516 | ||||||
New York City Transitional Finance Authority Future Tax Secured Revenue Refunding Bonds, Subseries B, | 780 | 821 | ||||||
New York City Transitional Finance Authority Future TRB, Series A, Unrefunded Balance, | 95 | 95 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
New York – 5.4% – continued | ||||||||
New York City Transitional Finance Authority Future TRB, Series A, Prerefunded, Escrowedto Maturity, | $75 | $75 | ||||||
New York City Transitional Finance Authority Recovery Revenue Bonds, Subseries 3B-1, | 190 | 191 | ||||||
New York City Transitional Finance Authority Subordinated Future Tax Secured Revenue Bonds, Series B, Escrowed to Maturity, | 2,470 | 2,598 | ||||||
New York City Transitional Finance Authority Subordinated Future Tax Secured Revenue Bonds, Series B, Unrefunded Balance, | 6,130 | 6,452 | ||||||
New York Fiscal 2008 G.O. Unlimited Bonds, Series A-1, | 170 | 177 | ||||||
New York G.O. Unlimited Bonds, Series C, | 390 | 413 | ||||||
New York State Dormitory Authority Non State Supported Debt Revenue Bonds, Series A, School Districts Financing Program (AGM Insured State Aid Withholding), | 355 | 370 | ||||||
New York State Dormitory Authority Non State Supported Debt Revenue Bonds, Series C, School Districts Financing Program (Assured Guaranty Insured State Aid Withholding), 5.00%, 10/1/16 | 1,905 | 2,079 | ||||||
5.00%, 10/1/17 | 2,880 | 3,250 | ||||||
New York State Dormitory Authority Personal Income Tax Education Revenue Bonds, Series D, | 130 | 133 | ||||||
New York State Dormitory Authority Personal Income Tax General Purpose Revenue Bonds, Series A, | 4,650 | 5,550 | ||||||
New York State Dormitory Authority Supported Debt Mental Health Services Facilities Revenue Bonds (State Appropriation Insured), Unrefunded Balance, | 300 | 313 |
See Notes to the Financial Statements.
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Table of Contents
SCHEDULE OF INVESTMENTS
SHORT-INTERMEDIATE TAX-EXEMPT FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
New York – 5.4% – continued | ||||||||
New York State Dormitory Authority Supported Debt Revenue Bonds, Series A, City University Consolidated 5th General, | $175 | $180 | ||||||
New York State Dormitory Authority Supported Debt Revenue Bonds, Series A, City University System Consolidated 5th General (NATL Insured), | 200 | 207 | ||||||
New York State Dormitory Economic Development & Housing Authority Personal Income TRB, Series A, | 100 | 101 | ||||||
New York State Dormitory Education Authority Personal Income TRB, Series A, | 1,265 | 1,351 | ||||||
New York State Economic Development & Housing Finance Agency Personal Income TRB, Series A, | 100 | 102 | ||||||
New York State Environmental Facilities Corp. Clean Municipal Water & Drinking Revenue Bonds, Series B, Revolving Funds, | 250 | 259 | ||||||
New York State Environmental Facilities Corp. Clean Water & Drinking Revenue Bonds, Series A, | 150 | 155 | ||||||
New York State Environmental Facilities Corp. Personal Income TRB, Series A, | 350 | 353 | ||||||
4.00%, 12/15/14 | 100 | 101 | ||||||
New York State Local Government Assistance Corp. Revenue Refunding Bonds, Series A, Senior Lien (G.O. of Corp. Insured), | 200 | 205 | ||||||
New York State Thruway Authority Local Highway & Bridge Revenue Bonds, | 4,500 | 4,609 | ||||||
New York State Thruway Transportation Authority Personal Income TRB, Series A, | 100 | 102 | ||||||
New York State University Dormitory Facilities Authority Supported Debt Revenue Bonds, Series A, | 145 | 149 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
New York – 5.4% – continued | ||||||||
New York State Urban Development Corp. Personal Income TRB, Series A1, | $500 | $523 | ||||||
New York State Urban Development Corp. Personal Income TRB, Series D, | 2,850 | 3,376 | ||||||
New York State Urban Development Corp. Personal Income TRB, Series E, | 4,750 | 5,676 | ||||||
New York State Urban Development Corp. Revenue Refunding Bonds, Series D, | 3,000 | 3,178 | ||||||
Tobacco Settlement Financing Corp. Revenue Asset Backed Bonds, Series B, | 2,500 | 2,578 | ||||||
75,897 | ||||||||
North Carolina – 2.4% | ||||||||
Cary Public Improvement G.O. Unlimited Refunding Bonds, Series B, | 250 | 256 | ||||||
Mecklenburg County G.O. Unlimited Refunding Bonds, Series C, | 3,000 | 3,099 | ||||||
5.00%, 3/1/16 | 10,000 | 10,670 | ||||||
New Hanover County Community College G.O. Unlimited Bonds, Series A, | 2,500 | 2,794 | ||||||
North Carolina State G.O. Unlimited Refunding Bonds, Series C, | 10,000 | 11,387 | ||||||
University of North Carolina System Pool Revenue Bonds, Series A (Assured Guaranty Insured), | 500 | 500 | ||||||
Wake County School G.O. Unlimited Bonds, Series A, | 5,100 | 5,813 | ||||||
34,519 | ||||||||
North Dakota – 0.0% | ||||||||
North Dakota State PFA Revenue Bonds, Series A, State Revolving Fund Program, | 200 | 200 | ||||||
Ohio – 3.5% | ||||||||
Cincinnati Various Purpose G.O. Unlimited Refunding Bonds, Series C, | 150 | 151 |
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 60 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED)
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
Ohio – 3.5% – continued | ||||||||
Columbus G.O. Unlimited Refunding Bonds, Series 1, | $5,000 | $5,895 | ||||||
Columbus Various Purpose G.O. Unlimited Bonds, Series A, | 2,000 | 2,364 | ||||||
Gallia County Local School Improvement District G.O. Unlimited Refunding Bonds (School District Credit Program Insured), | 750 | 890 | ||||||
Hamilton County Sewer System Revenue Refunding Bonds, Series A, | 1,150 | 1,304 | ||||||
Miami University Revenue Refunding Bonds, | 540 | 559 | ||||||
Ohio State Building Authority Facilities Revenue Bonds, Series A, Juvenile Correction Building, | 200 | 200 | ||||||
Ohio State Building Authority Revenue Bonds, Series C, | 100 | 100 | ||||||
5.00%, 10/1/15 | 200 | 210 | ||||||
Ohio State Common Schools G.O. Unlimited Bonds, Series B, | 5,000 | 5,875 | ||||||
Ohio State Common Schools G.O. Unlimited Refunding Bonds, Series A, | 6,000 | 6,277 | ||||||
Ohio State Department of Administrative Knowledge System Services COPS, Series A, | 11,950 | 12,480 | ||||||
Ohio State Fresh Water Development Authority Revenue Bonds, Series A, | 2,000 | 2,356 | ||||||
Ohio State G.O. Unlimited Bonds, Series D, | 100 | 105 | ||||||
Ohio State Higher Educational Facility Commission Revenue Bonds, University Dayton Project (AMBAC Insured), Prerefunded, | 600 | 605 | ||||||
Ohio State Major New Infrastructure Project Revenue Bonds, Series 2006-1 (NATL-RE Insured), | 150 | 155 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
Ohio – 3.5% – continued | ||||||||
Ohio State Major New Street Infrastructure Project Revenue Bonds, Series 3, | $130 | $131 | ||||||
Ohio State Parks & Recreation Capital Facilities Revenue Bonds, | 100 | 101 | ||||||
Ohio State University Revenue Bonds, Series A, Prerefunded, Escrowed to Maturity, | 280 | 282 | ||||||
Ohio State University Revenue Bonds, Series A, Unrefunded Balance, | 4,720 | 4,759 | ||||||
Ohio State Water Quality Development Authority PCR Refunding Bonds, | 2,250 | 2,269 | ||||||
University of Akron Receipts Revenue Bonds, Series A (AGM Insured), | 2,500 | 2,530 | ||||||
49,598 | ||||||||
Oklahoma – 0.3% | ||||||||
Edmond Public Works Authority Sales Tax & Utility System Revenue Refunding Bonds, | 1,850 | 1,890 | ||||||
Oklahoma City Water & Sewer Utilities Trust Revenue Refunding Bonds, Series B, | 200 | 205 | ||||||
Oklahoma State Municipal Power Authority Revenue Bonds, Series A, | 1,575 | 1,594 | ||||||
Tulsa County Independent School District No. 1 Tulsa Combined Purpose G.O. Unlimited Bonds, | 100 | 101 | ||||||
3,790 | ||||||||
Oregon – 2.0% | ||||||||
Clackamas County G.O. Limited Bonds (NATL-RE Insured), | 230 | 236 | ||||||
Deschutes County Administrative School District No. 1 G.O. Unlimited Bonds (NATL Insured), | 100 | 103 |
See Notes to the Financial Statements.
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Table of Contents
SCHEDULE OF INVESTMENTS
SHORT-INTERMEDIATE TAX-EXEMPT FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
Oregon – 2.0% – continued |
| |||||||
Oregon State Board Higher Education G.O. Unlimited Bonds, Series A, | $2,380 | $2,672 | ||||||
Oregon State Department of Administrative Services COPS, Series A (AGM Insured), Prerefunded, | 500 | 514 | ||||||
Oregon State Department of Administrative Services COPS, Series C, | 2,895 | 2,907 | ||||||
Oregon State Department of Administrative Services Lottery Revenue Refunding Bonds, Series C, | 2,000 | 2,423 | ||||||
Oregon State Department of Administrative Services Refunding COPS, Series D, | 5,670 | 5,694 | ||||||
Oregon State Department of Transportation Highway User TRB, Series A, Senior Lien, | 150 | 158 | ||||||
Oregon State G.O. Unlimited Bonds, Series E, Oregon Univ System Project, | 100 | 103 | ||||||
Oregon State G.O. Unlimited Bonds, Series L, | 1,740 | 2,097 | ||||||
5.00%, 11/1/21 | 905 | 1,098 | ||||||
Oregon State University System G.O. Unlimited Refunding Bonds, Series A, | 2,020 | 2,425 | ||||||
Tri-County Metropolitan Transportation District Payroll Tax & Grant Receipt Revenue Bonds, | 5,000 | 5,280 | ||||||
Washington County Clean Water Services Sewer Revenue Bonds, Series A, Senior Lien, | 2,435 | 2,527 | ||||||
Washington County School District No. 48J Beaverton G.O. Unlimited Refunding Bonds (School Board Guaranty Program), | 250 | 255 | ||||||
Yamhill County School District No. 29J Newberg G.O. Unlimited Bonds, Series A (School Board Guaranty Program), | 250 | 255 | ||||||
28,747 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
Pennsylvania – 1.9% |
| |||||||
Allegheny County G.O. Unlimited Refunding Bonds, Series C-73, | $1,000 | $1,181 | ||||||
Central Bucks School District G.O. Unlimited Bonds (AGM Insured State Aid Withholding), | 100 | 103 | ||||||
Hempfield School District Lancaster County G.O. Unlimited Bonds, Series A (State Aid Withholding), | 300 | 321 | ||||||
Pennsylvania State G.O. Unlimited Bonds, First Series, | 150 | 153 | ||||||
5.00%, 5/15/15 | 150 | 155 | ||||||
Pennsylvania State G.O. Unlimited Bonds, Second Series, | 3,575 | 3,754 | ||||||
Pennsylvania State G.O. Unlimited Refunding Bonds, Second Series, | 15,000 | 15,547 | ||||||
Pennsylvania State Higher Educational Facilities Authority Revenue Bonds, Series A, University of Pennsylvania, | 5,000 | 5,632 | ||||||
Philadelphia Water & Wastewater Revenue Bonds, Series A, | 500 | 538 | ||||||
27,384 | ||||||||
Rhode Island – 0.0% | ||||||||
Rhode Island State Clean Water Finance Agency PCR Refunding Bonds, Subseries A, | 150 | 150 | ||||||
South Carolina – 1.5% | ||||||||
Charleston Educational Excellence Finance Corp. Revenue Bonds, Charleston County School District, Prerefunded, | 150 | 159 | ||||||
Horry County School District G.O. Unlimited Refunding Bonds (SCSDE Insured), | 5,705 | 6,504 | ||||||
Lancaster Educational Assistance Program, Inc. Installment Purchase Revenue Bonds, School District Lancaster County Project, Prerefunded, | 645 | 651 |
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 62 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
South Carolina – 1.5% – continued | ||||||||
Lexington County School District No. 1 G.O. Unlimited Refunding Bonds, Series A (SCSDE Insured), | $2,120 | $2,475 | ||||||
South Carolina State Capital Improvements G.O. Unlimited Bonds, | 10,000 | 10,205 | ||||||
South Carolina State Economic Development G.O. Unlimited Bonds, Series A (State Aid Withholding), | 300 | 314 | ||||||
South Carolina State University Infrastructure G.O. Unlimited Bonds, Series B (State Aid Withholding), | 200 | 201 | ||||||
20,509 | ||||||||
Tennessee – 1.5% | ||||||||
Knoxville Wastewater System Revenue Bonds, | 125 | 129 | ||||||
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board Revenue Bonds, Series B, Vanderbilt University (G.O. of University Insured), | 5,000 | 5,255 | ||||||
Shelby County G.O. Unlimited Refunding Bonds, Series A, Prerefunded, Escrowed to Maturity, | 995 | 1,019 | ||||||
Shelby County G.O. Unlimited Refunding Bonds, Series A, Unrefunded Balance, | 4,005 | 4,103 | ||||||
Tennessee State G.O. Unlimited Bonds, Series A, | 5,000 | 5,143 | ||||||
Tennessee State G.O. Unlimited Refunding Bonds, Series A, | 1,145 | 1,374 | ||||||
Tennessee State School Bond Authority Revenue Refunding Bonds (State Intercept Program), Higher Educational Facilities Second Program, | 2,125 | 2,573 | ||||||
Williamson County District School G.O. Unlimited Bonds, Series A, | 1,000 | 1,191 | ||||||
20,787 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
Texas – 7.7% | ||||||||
Alamo Community College District Combined Fee Revenue Refunding Bonds (AMBAC Insured), Escrowedto Maturity, | $100 | $100 | ||||||
Alief Independent School District G.O. Unlimited Refunding Bonds, Series A (PSF-Gtd.), | 120 | 124 | ||||||
Alvin Independent Schoolhouse District G.O. Unlimited Bonds, Series B, (PSF-Gtd.), | 5,000 | 5,297 | ||||||
Alvin Independent Schoolhouse District G.O. Unlimited Refunding Bonds (PSF-Gtd.), Prerefunded, | 150 | 153 | ||||||
Angleton Independent School Building District G.O. Unlimited Bonds (PSF-Gtd.), | 300 | 319 | ||||||
Arlington Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), | 150 | 160 | ||||||
Austin Electric Utility System Revenue Refunding Bonds (AGM Insured), | 150 | 151 | ||||||
Austin Public Property Finance Contractual G.O. Limited Bonds, | 165 | 172 | ||||||
Brownsville Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), Prerefunded, | 200 | 209 | ||||||
Bryan Independent School District G.O. Unlimited Bonds, Series B (PSF-Gtd.), | 200 | 204 | ||||||
Collin County Road G.O. Unlimited Bonds, | 100 | 102 | ||||||
Colony G.O. Limited Bonds, Certificates of Obligation (AMBAC Insured), Prerefunded, | 250 | 261 | ||||||
Comal Independent School District G.O. Unlimited Refunding Bonds, Series A (PSF-Gtd.), | 200 | 210 |
See Notes to the Financial Statements.
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Table of Contents
SCHEDULE OF INVESTMENTS
SHORT-INTERMEDIATE TAX-EXEMPT FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
Texas – 7.7% – continued | ||||||||
Cypress-Fairbanks Independent School District G.O. Unlimited Bonds, Series 2005-2 (PSF-Gtd.), | $7,140 | $7,577 | ||||||
Cypress-Fairbanks Independent School District G.O. Unlimited Bonds, Series B-2 (PSF-Gtd.), | 1,750 | 1,850 | ||||||
Cypress-Fairbanks Independent School District G.O. Unlimited Refunding Bonds, Series A (PSF-Gtd.), | 100 | 106 | ||||||
Cypress-Fairbanks Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), | 7,000 | 7,449 | ||||||
Dallas Area Rapid Transit Sales Tax Revenue Refunding Bonds, Senior Lien (AMBAC Insured), | 700 | 706 | ||||||
Dallas G.O. Limited Bonds, | 245 | 261 | ||||||
Dallas Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), | 150 | 158 | ||||||
Dallas Independent School District G.O. Unlimited Refunding Bonds, Series B (PSF-Gtd.), | 10,000 | 11,171 | ||||||
Dallas Waterworks & Sewer System Revenue Refunding Bonds, | 275 | 288 | ||||||
5.00%, 10/1/15 | 250 | 262 | ||||||
Denton County Permanent Improvement G.O. Limited Refunding Bonds (NATL-RE Insured), Prerefunded, | 200 | 207 | ||||||
Eagle Mountain & Saginaw Independent School Building District G.O. Unlimited Bonds (PSF-Gtd.), | 2,500 | 2,564 | ||||||
El Paso County Hospital District G.O. Limited Certificates (AMBAC Insured), Prerefunded, | 1,000 | 1,042 | ||||||
Fort Worth Water & Sewer Revenue Refunding Bonds, | 1,120 | 1,238 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
Texas – 7.7% – continued | ||||||||
Frisco G.O. Limited Refunding & Improvement Bonds (NATL-RE Insured), | $100 | $102 | ||||||
Frisco Independent School District G.O. Unlimited Bonds (PSF-Gtd.), | 210 | 219 | ||||||
Frisco Refunding & Improvement G.O. Limited Bonds (NATL-RE Insured), Prerefunded, | 135 | 138 | ||||||
Garland G.O. Limited Refunding Bonds, | 150 | 153 | ||||||
Garland G.O. Limited Refunding Bonds, Series A, | 300 | 319 | ||||||
Goose Creek Consolidated Independent School District Schoolhouse G.O. Unlimited Bonds (PSF-Gtd.), | 500 | 532 | ||||||
Harris County Flood Control District G.O. Limited Refunding Contract Bonds, Series A, | 410 | 430 | ||||||
Harris County Permanent Improvement G.O. Limited Refunding Bonds, Series B, | 100 | 104 | ||||||
5.00%, 10/1/15 | 600 | 629 | ||||||
Harris County Permanent Improvement G.O. Limited Refunding Bonds, Series C, Unrefunded Balance, | 105 | 110 | ||||||
Harris County Toll Road G.O. Unlimited Refunding Bonds, Series A, Subordinate Lien, | 100 | 103 | ||||||
Houston Community College System Student Fee Revenue Bonds, Senior Lien, | 125 | 128 | ||||||
Houston G.O. Limited Bonds, Series D (AMBAC Insured), Prerefunded, | 300 | 306 | ||||||
Houston Independent School Building District G.O. Limited Bonds, Series A (PSF-Gtd.), Prerefunded, | 250 | 255 | ||||||
Houston Public Improvement G.O. Limited Bonds, Series E (AMBAC Insured), Prerefunded, | 3,000 | 3,061 |
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 64 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
Texas – 7.7% – continued | ||||||||
Houston Public Improvement G.O. Limited Refunding Bonds, Series A, | $5,000 | $5,534 | ||||||
5.00%, 3/1/21 | 4,045 | 4,842 | ||||||
Houston Utility System Combined Revenue Refunding Bonds, Series A, First Lien (Assured Guaranty Insured), | 500 | 519 | ||||||
Houston Utility System Combined Revenue Refunding Bonds, Series D, First Lien, | 10,345 | 10,901 | ||||||
Humble Independent School Building District G.O. Unlimited Bonds (PSF-Gtd.), | 100 | 102 | ||||||
Judson Independent School Building District G.O. Unlimited Refunding Bonds (PSF-Gtd.), | 120 | 127 | ||||||
Klein Independent School District G.O. Unlimited Bonds (PSF-Gtd.), | 295 | 308 | ||||||
Klein Independent Schoolhouse District G.O. Unlimited Bonds (PSF-Gtd.), | 275 | 289 | ||||||
La Joya Independent School District G.O. Unlimited Bonds (PSF-Gtd.), Prerefunded, | 250 | 266 | ||||||
Lancaster Independent School District G.O. Unlimited Bonds (PSF-Gtd.), Prerefunded, | 290 | 295 | ||||||
Laredo Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), | 150 | 156 | ||||||
Lower Colorado River Authority Revenue Refunding Bonds, Prerefunded, | 475 | 491 | ||||||
Lower Colorado River Authority Revenue Refunding Bonds, Prerefunded, Escrowed to Maturity, | 5 | 5 | ||||||
Lower Colorado River Authority Revenue Refunding Bonds, Series 2012, Prerefunded, | 270 | 279 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
Texas – 7.7% – continued | ||||||||
Lower Colorado River Authority Revenue Refunding Bonds, Series 2012, Prerefunded, Escrowed to Maturity, | $65 | $67 | ||||||
Lower Colorado River Authority Revenue Refunding Bonds, Series 2012-2, Prerefunded, Escrowed to Maturity, | 1,250 | 1,288 | ||||||
Lower Colorado River Authority Revenue Refunding Bonds, Series 2014, Escrowed to Maturity, | 10 | 10 | ||||||
Lower Colorado River Authority Revenue Refunding Bonds, Series 2014, Unrefunded Balance, | 250 | 258 | ||||||
Lubbock Certificates Obligation Waterworks G.O. Limited Bonds, Series A, | 220 | 223 | ||||||
Northeast Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), | 150 | 156 | ||||||
Northside Independent School District Building G.O. Unlimited Bonds (PSF-Gtd.), | 2,400 | 2,401 | ||||||
Northside Independent School District Building G.O. Unlimited Refunding Bonds (PSF-Gtd.), | 650 | 731 | ||||||
Northside Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), | 150 | 160 | ||||||
Plano Independent School District Building G.O. Unlimited Bonds, Series A, | 230 | 234 | ||||||
Richardson G.O. Limited Refunding Bonds, | 1,000 | 1,105 | ||||||
Round Rock Independent School Building District G.O. Unlimited Bonds, Series A, | 100 | 103 | ||||||
Schertz-Cibolo-Universal City Independent School Building District G.O. Unlimited Bonds (PSF-Gtd.), | 900 | 914 | ||||||
Southlake G.O. Limited Refunding Bonds, | 100 | 101 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 65 | TAX-EXEMPT FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
SHORT-INTERMEDIATE TAX-EXEMPT FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
Texas – 7.7% – continued | ||||||||
Spring Independent Schoolhouse District G.O. Unlimited Refunding Bonds, Series 2008A (PSF-Gtd.), | $310 | $323 | ||||||
Tarrant County G.O. Limited Tax Bonds, | 250 | 260 | ||||||
Texas State PFA G.O. Unlimited Bonds, | 215 | 225 | ||||||
Texas State PFA G.O. Unlimited Refunding Bonds, Series A, | 7,000 | 7,340 | ||||||
5.00%, 10/1/18 | 3,620 | 4,198 | ||||||
Texas State PFA G.O. Unlimited Refunding Bonds, | 200 | 210 | ||||||
5.00%, 10/1/15 | 150 | 157 | ||||||
Texas State PFA Unemployment Compensation Revenue Bonds, Series A, Prerefunded, | 250 | 265 | ||||||
Texas State Transportation Commission Highway Fund Revenue Refunding Bonds, 1st Tier, | 250 | 268 | ||||||
Texas State Transportation Commission Highway Fund Revenue Refunding Bonds, Series A, 1st Tier, | 5,000 | 5,952 | ||||||
Texas State Transportation Commission Revenue Bonds, First Tier, | 505 | 517 | ||||||
Tomball Independent School Building District Variable G.O. Unlimited Bonds, Series B-3 (PSF-Gtd.), | 7,250 | 7,446 | ||||||
University of Texas Financing System Revenue Bonds, Series D, | 100 | 104 | ||||||
Weatherford Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), | 150 | 152 | ||||||
Williamson County Road G.O. Unlimited Bonds (AMBAC Insured), | 150 | 153 | ||||||
Ysleta Independent School District G.O. Unlimited Bonds (PSF-Gtd.), | 150 | 156 | ||||||
108,521 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
Utah – 1.6% | ||||||||
Davis County School District G.O. Unlimited Refunding Bonds, Series C (School Board Guaranty Program), | $7,540 | $8,656 | ||||||
Jordan Valley Water Conservancy District Revenue Refunding Bonds, Series A, | 300 | 344 | ||||||
5.00%, 10/1/28 | 200 | 230 | ||||||
Salt Lake City Sales & Excise TRB, Series A, | 250 | 253 | ||||||
Salt Lake County Sales TRB, Prerefunded, | 2,140 | 2,227 | ||||||
Utah State G.O. Unlimited Bonds, Series A, | 10,160 | 10,533 | ||||||
22,243 | ||||||||
Virginia – 7.8% | ||||||||
Arlington County G.O. Unlimited Bonds, Series A (State Aid Withholding), | 1,755 | 2,003 | ||||||
5.00%, 2/15/19 | 3,305 | 3,865 | ||||||
Arlington County G.O. Unlimited Refunding Bonds, Series D, | 3,235 | 3,340 | ||||||
Chesapeake G.O. Unlimited Bonds, Series A (State Aid Withholding), | 1,605 | 1,695 | ||||||
Fairfax County Economic Development Authority Lease Revenue Refunding Bonds, Joint Public Uses Complex Project, | 6,620 | 7,837 | ||||||
5.00%, 5/15/21 | 6,945 | 8,304 | ||||||
Fairfax County Public Improvement G.O. Unlimited Refunding Bonds, Series C (State Aid Withholding), | 10,235 | 10,731 | ||||||
Loudoun County G.O. Unlimited Bonds, Series B, | 500 | 515 | ||||||
5.00%, 11/1/17 | 10,000 | 11,325 | ||||||
Loudoun County Public Improvement G.O. Unlimited Refunding Bonds, Series A (State Aid Withholding), | 3,010 | 3,324 |
See Notes to the Financial Statements.
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Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED)
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
Virginia – 7.8% – continued | ||||||||
Lynchburg Public Improvement G.O. Unlimited Refunding Bonds (State Aid Withholding), | $2,990 | $3,431 | ||||||
Norfolk G.O. Unlimited Refunding Bonds, Series C (State Aid Withholding), | 4,100 | 4,962 | ||||||
Portsmouth Public Improvement G.O. Unlimited Bonds, Series A (State Aid Withholding), | 345 | 361 | ||||||
Virginia State College Building Authority Educational Facilities Revenue Refunding Bonds, Series C, 21st Century College (State Intercept Program), | 100 | 101 | ||||||
Virginia State Commonwealth Transportation Board Revenue Bonds, Capital Projects, | 3,465 | 3,975 | ||||||
Virginia State Commonwealth Transportation Board Revenue Bonds, Capital Projects (State Appropriation Insured), | 2,725 | 3,038 | ||||||
Virginia State Commonwealth Transportation Board Revenue Bonds, Capital Projects, | 8,170 | 9,701 | ||||||
Virginia State G.O. Unlimited Bonds, Series A, Prerefunded, | 250 | 257 | ||||||
Virginia State Public Building Authority Facilities Revenue Bonds, Series A, | 4,005 | 4,847 | ||||||
Virginia State Public Building Authority Facilities Revenue Refunding Bonds, Series D, | 115 | 119 | ||||||
5.00%, 8/1/15 | 150 | 156 | ||||||
Virginia State Public School Authority Revenue Bonds, Series B-1, School Financing 1997 (State Aid Withholding), | 1,000 | 1,085 | ||||||
Virginia State Public School Financing Authority Revenue Refunding Bonds, Series C (State Aid Withholding), | 10,000 | 11,769 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
Virginia – 7.8% – continued | ||||||||
Virginia State Resources Authority Clean Water Revenue Refunding Bonds, Revolving Fund, | $3,500 | $4,208 | ||||||
Virginia State Resources Authority Infrastructure Non Ace Revenue Bonds, Senior Series A, Pooled Financing, | 4,025 | 4,236 | ||||||
Virginia State Resources Authority Infrastructure Revenue Bonds, Series A, Pooled Financing, | 1,930 | 2,314 | ||||||
Virginia State Resources Authority Sub-Clean Water State Revolving Fund Revenue Bonds, Prerefunded, | 1,750 | 1,980 | ||||||
109,479 | ||||||||
Washington – 4.7% | ||||||||
Energy Northwest Electric Revenue Refunding Bonds, Columbia Generating Station, | 260 | 270 | ||||||
Energy Northwest Electric Revenue Refunding Bonds, Series A, Project No. 3, | 5,100 | 5,286 | ||||||
Energy Northwest Electric Revenue Refunding Bonds, Series A, Columbia Generating Station, | 5,000 | 5,749 | ||||||
Energy Northwest Electric Revenue Refunding Bonds, Series A, Project No. 1, | 350 | 363 | ||||||
5.00%, 7/1/15 | 200 | 207 | ||||||
Energy Northwest Electric Revenue Refunding Bonds, Series C, Project No. 1, | 100 | 104 | ||||||
Energy Northwest Washington Electric Revenue Refunding Bonds, Series A, Project No. 3, | 10,000 | 11,498 | ||||||
King & Snohomish Counties School District No. 417 Northshore G.O. Unlimited Refunding Bonds (School Board Guaranty Program), | 2,500 | 2,802 | ||||||
5.00%, 12/1/20 | 2,000 | 2,391 |
See Notes to the Financial Statements.
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Table of Contents
SCHEDULE OF INVESTMENTS
SHORT-INTERMEDIATE TAX-EXEMPT FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
Washington – 4.7% – continued | ||||||||
King County Rural Library District G.O. Unlimited Bonds, | $100 | $103 | ||||||
Lewis County Public Utility District No. 1 Cowlitz Falls Hydroelectric Project Revenue Refunding Bonds, | 600 | 675 | ||||||
Skagit County Consolidated School District No. 320 Mount Vernon G.O. Unlimited Refunding Bonds (AGM Insured School Board Guaranty Program), | 100 | 106 | ||||||
Snohomish County G.O. Limited Tax Refunding Bonds, Series A, | 200 | 209 | ||||||
Snohomish County Public Utility District No. 1 Electric Revenue Refunding Bonds (AGM Insured), | 3,000 | 3,165 | ||||||
Snohomish County School District No. 15 Edmonds G.O. Unlimited Bonds (School Board Guaranty Program), | 750 | 905 | ||||||
Snohomish County School District No. 16 Arlington G.O. Unlimited Refunding Bonds (NATL Insured School Board Guaranty Program), Prerefunded, | 250 | 252 | ||||||
Thurston County School District #33 Tumwater G.O. Unlimited Refunding Bonds (School Board Guaranty Program), | 100 | 105 | ||||||
Washington Federal Highway Grant Anticipation Revenue Bonds, Series C, Senior 520 Corridor Program, | 4,750 | 5,473 | ||||||
Washington State G.O. Unlimited Refunding Bonds, Series R-2011-A, | 5,200 | 5,907 | ||||||
Washington State Various Purpose G.O. Unlimited Bonds, Series A, | 2,000 | 2,081 | ||||||
Washington State Various Purpose G.O. Unlimited Bonds, Series D, | 9,795 | 11,711 | ||||||
Washington State Various Purpose G.O. Unlimited Bonds, Series F, | 250 | 258 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 88.1% – continued | ||||||||
Washington – 4.7% – continued | ||||||||
Washington State Various Purpose G.O. Unlimited Refunding Bonds, | $3,000 | $3,605 | ||||||
Whatcom County School District No. 501 Bellingham G.O. Unlimited Refunding Bonds (School Board Guaranty Program), | 2,170 | 2,583 | ||||||
65,808 | ||||||||
Wisconsin – 1.7% | ||||||||
Central Brown County Water Authority System Revenue Bonds (AMBAC Insured), Prerefunded, | 250 | 264 | ||||||
Central Brown County Water Authority System Revenue Refunding Bonds, Series A, | 200 | 237 | ||||||
Milwaukee County Metropolitan System Sewerage District G.O. Unlimited Refunding Bonds, Series A, | 100 | 105 | ||||||
Milwaukee G.O. Unlimited Bonds, Series N 1, Promissory Notes (AMBAC Insured), | 145 | 148 | ||||||
Milwaukee G.O. Unlimited Bonds, Series N1, Promissory Notes, | 4,300 | 4,577 | ||||||
Milwaukee G.O. Unlimited Promissory & Corporate Notes, | 1,175 | 1,395 | ||||||
Wisconsin State G.O. Unlimited Bonds, Series D, | 4,625 | 4,757 | ||||||
Wisconsin State G.O. Unlimited Refunding Bonds, Series 1, | 5,000 | 5,859 | ||||||
5.00%, 5/1/20 | 5,000 | 5,948 | ||||||
Wisconsin State Transportation Revenue Bonds, Series A (NATL Insured), Prerefunded, | 250 | 258 | ||||||
23,548 | ||||||||
Total Municipal Bonds | ||||||||
(Cost $1,214,618) | 1,241,183 |
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 68 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED)
NUMBER OF SHARES | VALUE (000s) | |||||||
INVESTMENT COMPANIES – 9.2% | ||||||||
AIM Tax-Free Cash Reserve Portfolio | 96,061 | $96 | ||||||
Northern Institutional Funds - Tax-Exempt Portfolio, 0.01% (2)(3) | 130,009,991 | 130,010 | ||||||
Total Investment Companies | ||||||||
(Cost $130,106) | 130,106 | |||||||
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
SHORT-TERM INVESTMENTS – 2.5% | ||||||||
Bartow County School District G.O. Unlimited Bonds, Series A (State Aid Withholding), | $450 | $450 | ||||||
Baton Rouge Public Improvement Sales Tax Revenue Refunding Bonds, Series A-2 (AGM Insured), | 105 | 109 | ||||||
Beaumont G.O. Limited Refunding Bonds, | 100 | 101 | ||||||
Bernalillo County Gross Receipts Tax Revenue Refunding Bonds (AMBAC Insured), | 200 | 200 | ||||||
Citizens Property Insurance Corp. High Risk Account Senior Secured Revenue Refunding Bonds, Series A (NATL-RE Insured), | 565 | 576 | ||||||
Cleveland Water Revenue Bonds, Series W, | 100 | 101 | ||||||
Cook County Community High School District No. 219 Niles Township G.O. Unlimited Bonds (NATL Insured), Unrefunded Balance, | 800 | 811 | ||||||
Cypress-Fairbanks Independent School District G.O. Unlimited VRDB, Series B-3 (PSF-Gtd.), | 3,000 | 3,043 | ||||||
Dallas G.O. Limited Refunding Bonds, Series C, Unrefunded Balance, | 275 | 279 | ||||||
Dallas Waterworks & SewerSystem Revenue Refunding Bonds, | 100 | 100 | ||||||
Dane County G.O. Unlimited Bonds, Series A, Promissory Notes, | 825 | 829 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
SHORT-TERM INVESTMENTS – 2.5% – continued | ||||||||
DeKalb County Special Recreation Tax District G.O. Unlimited Bonds, | $2,000 | $2,017 | ||||||
Edcouch Elsa Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), | 365 | 372 | ||||||
Elysian Fields Independent School District G.O. Unlimited Bonds (PSF-Gtd.), | 135 | 137 | ||||||
Forsyth County Limited Obligation Revenue Bonds, | 200 | 204 | ||||||
Fort Zumwalt School District G.O. Unlimited Refunding Bonds, Series A (State Aid Direct Deposit Program), | 200 | 204 | ||||||
Harris County Permanent Improvement G.O. Limited Refunding Bonds, | 150 | 150 | ||||||
Honolulu City & County G.O. Unlimited Bonds, Series C, Escrowed to Maturity, | 125 | 131 | ||||||
Houston Independent School District G.O. Limited VRDB, Series A (PSF-Gtd.), | 10,000 | 10,040 | ||||||
Indiana State Finance Authority Revenue Refunding Bonds, Series A, State Revolving Fund, | 150 | 152 | ||||||
Lake County Community High School District No. 115 Lake Forest G.O. Unlimited Bonds, | 250 | 251 | ||||||
Lone Star College System G.O. Limited Tax Refunding Bonds, Series B, | 100 | 102 | ||||||
Maple Grove G.O. Unlimited Refunding Bonds, Series D, | 150 | 152 | ||||||
Massachusetts State G.O. Unlimited Refunding Bonds, Series A, | 100 | 104 | ||||||
Milwaukee County G.O. Unlimited Refunding Bonds, Series A (NATL-RE Insured), | 100 | 100 | ||||||
Montgomery County G.O. Unlimited Bonds, Certificates of Obligation, (AGM Insured), Escrowed to Maturity, | 60 | 61 |
See Notes to the Financial Statements.
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Table of Contents
SCHEDULE OF INVESTMENTS
SHORT-INTERMEDIATE TAX-EXEMPT FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
SHORT-TERM INVESTMENTS – 2.5% – continued | ||||||||
Montgomery County G.O. Unlimited Bonds, Certificates of Obligation, (AGM Insured), Unrefunded Balance, | $40 | $41 | ||||||
Nacogdoches Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), | 395 | 401 | ||||||
New Mexico State Finance Authority Revenue Bonds, Series A, Senior Lien, Public Project Revolving Fund, | 115 | 117 | ||||||
New York State Dormitory Authority Revenue Bonds, Series A, State University Educational Facilities, 5.25%, 5/15/15 | 255 | 263 | ||||||
New York State Thruway Authority Highway & Bridge Trust Fund Revenue Bonds, Series B, Second General Resolution, | 285 | 292 | ||||||
Ohio State Higher Education G.O. Unlimited Bonds, Series A, | 250 | 256 | ||||||
Putnam County School G.O. Unlimited Bonds (NATL-RE Insured), | 200 | 204 | ||||||
Salt River Project Agricultural Improvement & Power District Electric Revenue Bonds, Series A, | 150 | 152 | ||||||
San Antonio Municipal Drain Utility System Revenue Bonds (NATL-RE Insured), | 125 | 127 | ||||||
Schertz-Cibolo-Universal City Independent School Building District G.O. Unlimited Bonds, Series A (PSF-Gtd.), | 380 | 386 | ||||||
Tacoma Electric System Revenue Refunding Bonds, Series A, | 150 | 151 | ||||||
Texas State A&M University Financing System Revenue Bonds, Series B, | 200 | 206 | ||||||
Texas State G.O. Unlimited TRANS, | 10,000 | 10,125 | ||||||
Valley View Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), | 225 | 228 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
SHORT-TERM INVESTMENTS – 2.5% – continued | ||||||||
Wichita Tax Increment Financing G.O. Unlimited Bonds, Series 962, | $620 | $628 | ||||||
Total Short-Term Investments | ||||||||
(Cost $34,348) | 34,353 | |||||||
Total Investments – 99.8% | ||||||||
(Cost $1,379,072) | 1,405,642 | |||||||
Other Assets less Liabilities – 0.2% | 2,680 | |||||||
NET ASSETS – 100.0% | $1,408,322 |
(1) | When-Issued Security. |
(2) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
(3) | At March 31, 2014, the value of the Fund’s investment in the Tax-Exempt Portfolio of the Northern Institutional Funds was approximately $89,477,000 with net purchases of approximately $40,533,000 during the six months ended September 30, 2014. |
Percentages shown are based on Net Assets.
At September 30, 2014, the credit quality distribution for the Fund as a percentage of investments including cash was:
QUALITY DISTRIBUTION* | % OF INVESTMENTS | |||
AAA | 35.5% | |||
AA | 51.2 | |||
A | 12.1 | |||
A1+ | 0.7 | |||
Not Rated | 0.5 | |||
Total | 100.0% |
* Credit quality ratings are based on converting the available Moody’s, Standard & Poor’s, and/or Fitch ratings to a common numerical basis and averaging that result. If none of these three rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). The Standard & Poor’s short-term municipal rating of SP1 reflects a strong capacity to pay principal and interest (an issue determined to possess a very strong capacity to pay debt service is given a plus (+) designation). The Moody’s short-term municipal rating of MIG1 denotes superior credit quality (excellent protection is afforded by established cash flows, highly reliable liquidity support or demonstrated broad-based access to the market for refinancing). The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 70 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
At September 30, 2014, the industry sectors for the Fund were:
INDUSTRY SECTOR | % OF INVESTMENTS | |||
General Obligations | 36.6% | |||
General | 16.1 | |||
School District | 15.4 | |||
Financials | 9.3 | |||
All other sectors less than 5% | 22.6 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The Inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Municipal Bonds | $– | $1,241,183 | (1) | $– | $1,241,183 | |||||||||||
Investment Companies | 130,106 | – | – | 130,106 | ||||||||||||
Short-Term Investments | – | 34,353 | – | 34,353 | ||||||||||||
Total Investments | $130,106 | $1,275,536 | $– | $1,405,642 |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 71 | TAX-EXEMPT FIXED INCOME FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
TAX-EXEMPT FUND
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 92.7% | ||||||||
Alabama – 0.1% | ||||||||
Birmingham Convertible G.O. Unlimited CABS, Series A, | $1,000 | $1,017 | ||||||
Alaska – 0.4% | ||||||||
Alaska State General Housing Finance Corp. Revenue Bonds, Series B (NATL-RE G.O. of Corp. Insured), | 3,000 | 3,086 | ||||||
Arizona – 2.8% | ||||||||
Arizona State Transportation Board Highway Revenue Bonds, Series B, | 5,000 | 5,682 | ||||||
Mesa Utility System Revenue Refunding Bonds, | 4,000 | 3,906 | ||||||
3.25%, 7/1/29 (2) | 5,000 | 4,916 | ||||||
Phoenix Civic Plaza Improvement Corp. Excise TRB, Subseries A (BHAC-CR FGIC Insured), | 5,000 | 5,138 | ||||||
Student & Academic Services LLC Northern Arizona Capital Facilities Lease Revenue Bonds (BAM Insured), | 2,000 | 2,206 | ||||||
21,848 | ||||||||
California – 13.1% | ||||||||
Brentwood Infrastructure Financing Authority Water Revenue Bonds, | 1,500 | 1,696 | ||||||
California State Educational Facilities Authority Revenue Bonds, Series A, University of Southern California, | 2,000 | 2,282 | ||||||
California State Educational Facilities Authority Revenue Bonds, University of Southern California, | 5,000 | 5,193 | ||||||
California State G.O. Unlimited Refunding Bonds, | 2,830 | 3,470 | ||||||
California State Various G.O. Unlimited Bonds, Series 2007, Unrefunded Balance, | 75 | 75 | ||||||
California State Various Purpose G.O. Unlimited Bonds, Prerefunded, | 5,000 | 5,120 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 92.7% – continued | ||||||||
California – 13.1% – continued | ||||||||
California State Various Purpose G.O. Unlimited Refunding Bonds, | $4,775 | $5,528 | ||||||
Carlsbad Unified School District Convertible Election G.O. Unlimited CABS, Series B, | 2,500 | 2,246 | ||||||
Chabot-Las Positas Community College District G.O. Unlimited CABS, | 10,000 | 2,735 | ||||||
2.77%, 8/1/41 (1) | 10,000 | 2,600 | ||||||
Chabot-Las Positas Community College District G.O. Unlimited CABS, | 11,800 | 2,485 | ||||||
Desert Community College District G.O. Unlimited Bonds, Series C (AGM Insured), | 1,500 | 1,642 | ||||||
Desert Community College District G.O. Unlimited CABS, Series C, Election of 2004 (AGM Insured), | 12,000 | 2,181 | ||||||
Long Beach Community College District Convertible G.O. Unlimited CABS, Series B, Election of 2008, | 5,000 | 2,116 | ||||||
Long Beach Harbor Revenue Refunding Bonds, Series A (AMT) (NATL-RE Insured), | 1,000 | 1,029 | ||||||
Los Angeles Department of Water & Power System Revenue Bonds, Subseries A-1 (AMBAC Insured), | 3,000 | 3,297 | ||||||
Los Angeles Harbor Department Revenue Bonds, Series C, | 2,500 | 2,861 | ||||||
Los Angeles Harbor Department Revenue Refunding Bonds, Series A (AMT), | 1,500 | 1,674 | ||||||
Los Angeles Unified School District G.O. Unlimited Bonds, Series F, | 1,000 | 1,135 | ||||||
Metropolitan Water District of Southern California State Revenue Bonds, Series A, | 6,105 | 6,773 |
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 72 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 92.7% – continued | ||||||||
California – 13.1% – continued | ||||||||
Modesto Irrigation District Capital Improvements COPS, Series A, | $7,020 | $8,122 | ||||||
Mount San Antonio Community College District Convertible G.O. Unlimited CABS, Series A, Election of 2008, | 2,500 | 1,565 | ||||||
Sacramento County Airport System Senior Revenue Bonds, | 1,280 | 1,455 | ||||||
San Francisco Bay Area Toll Authority Bridge Revenue Bonds, Series F-1, | 5,000 | 5,670 | ||||||
San Francisco City & County Airports Commision International Airport Revenue Bonds, Series A (AMT), | 5,000 | 5,504 | ||||||
San Francisco City & County Airports Commision International Airport Revenue Bonds, Series B, | 3,000 | 3,369 | ||||||
San Francisco City & County Airports Commission Revenue Bonds, Series E, | 5,000 | 5,758 | ||||||
Sequoia Union High School District G.O. Unlimited Bonds, Series C-1, Election of 2008, | 1,100 | 1,326 | ||||||
Solano County Community College District G.O. Unlimited Bonds, Series A, Election of 2012, | 3,200 | 2,196 | ||||||
University of California General Revenue Bonds, Series Q, | 2,500 | 2,805 | ||||||
Ventura County Community College District G.O. Unlimited Bonds, Series C, Election of 2002, | 7,000 | 8,091 | ||||||
101,999 | ||||||||
Colorado – 1.2% | ||||||||
Denver City & County Airport System Revenue Bonds, Series A, | 3,000 | 3,430 | ||||||
5.25%, 11/15/36 | 5,000 | 5,567 | ||||||
8,997 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 92.7% – continued | ||||||||
Connecticut – 0.5% | ||||||||
Connecticut State G.O. Unlimited TRB, Series A, | $3,450 | $3,454 | ||||||
Connecticut State Higher Education Supplement Loan Authority Revenue Refunding Bonds, Series A (AMT), Senior Family Education Loan Program (NATL-RE Insured), | 575 | 603 | ||||||
4,057 | ||||||||
Delaware – 0.0% | ||||||||
Delaware State Housing Authority Senior SFM Revenue Bonds, Series A (AMT) (AGM Insured), | 5 | 5 | ||||||
District of Columbia – 3.1% | ||||||||
District of Columbia University Revenue Bonds, Series D, Georgetown University (BHAC-CR Insured), | 1,010 | 1,148 | ||||||
District of Columbia Water & Sewer Authority Public Utility Revenue Bonds, Series A, | 20,000 | 22,643 | ||||||
23,791 | ||||||||
Florida – 7.0% | ||||||||
Broward County Airport System Revenue Bonds, Series C, | 5,000 | 5,556 | ||||||
Broward County Port Facilities Revenue Refunding Bonds, Series A (AGM Insured), | 1,235 | 1,400 | ||||||
5.00%, 9/1/25 | 1,000 | 1,126 | ||||||
Broward County Port Facilities Revenue Refunding Bonds, Series B (AMT), | 2,500 | 2,826 | ||||||
Florida State Department of Transportation Right of Way G.O. Unlimited Bonds, | 10,000 | 11,121 | ||||||
Florida State Municipal Power Agency All Requirements Revenue Bonds, Series A, | 3,000 | 3,573 | ||||||
Miami-Dade County Aviation International Airport Revenue Bonds, Series A, | 2,500 | 2,930 |
See Notes to the Financial Statements.
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SCHEDULE OF INVESTMENTS
TAX-EXEMPT FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 92.7% – continued | ||||||||
Florida – 7.0% – continued | ||||||||
Miami-Dade County Aviation Revenue Refunding Bonds (AMT), | $2,000 | $2,290 | ||||||
Miami-Dade County Transit System Sales Surtax Revenue Bonds, | 6,000 | 6,610 | ||||||
Orlando Contract Tourist Development Tax Payments Revenue Bonds, Series A, | 2,500 | 2,794 | ||||||
Orlando Utilities Commission Revenue Refunding Bonds, Subseries D, Escrowed to Maturity, | 4,825 | 5,273 | ||||||
South Miami Health Facilities Authority Revenue Bonds, Baptist Health South Florida Group, | 5,000 | 5,278 | ||||||
Sunrise Utility System Revenue Refunding Bonds, Series A (AMBAC Insured), | 3,245 | 3,335 | ||||||
54,112 | ||||||||
Georgia – 1.8% | ||||||||
Athens-Clarke County Unified Government Water & Sewerage Revenue Bonds, | 7,500 | 8,591 | ||||||
Georgia State G.O. Unlimited Refunding Bonds, Series E-2, | 2,500 | 2,600 | ||||||
Georgia State Municipal Electric Authority Revenue Bonds, Series B, Non-Callable Certificates (FGIC-TCRS Insured), | 2,300 | 2,393 | ||||||
13,584 | ||||||||
Hawaii – 3.7% | ||||||||
Hawaii State Airports System Revenue Bonds, Series A, | 4,000 | 4,606 | ||||||
Honolulu City & County G.O. Unlimited Bonds, Series D, | 1,000 | 1,153 | ||||||
Honolulu City & County Wastewater System Revenue Bonds, Senior Series A (NATL Insured), | 15,000 | 15,429 | ||||||
Honolulu City & County Wastewater System Revenue Bonds, Senior Series A, First Bond Resolution (NATL-RE Insured), | 2,000 | 2,113 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 92.7% – continued | ||||||||
Hawaii – 3.7% – continued | ||||||||
University of Hawaii Revenue Bonds, Series A, | $5,000 | $5,730 | ||||||
29,031 | ||||||||
Idaho – 0.6% | ||||||||
Idaho State Health Facilities Authority Revenue Bonds, Series A, Saint Lukes Health System Project, | 2,500 | 2,512 | ||||||
5.00%, 3/1/39 | 2,000 | 2,190 | ||||||
4,702 | ||||||||
Illinois – 8.7% | ||||||||
Chicago Midway Airport Revenue Refunding Bonds, Series B, Second Lien, | 2,500 | 2,794 | ||||||
Chicago O’Hare International Airport Revenue Refunding Bonds, Series A, Passenger Facilities Charge, | 2,000 | 2,331 | ||||||
Chicago O’Hare International Airport Revenue Refunding Bonds, Series B (AMT), Passenger Facilities Charge, | 2,500 | 2,812 | ||||||
Chicago Waterworks Revenue Bonds, Second Lien Project, | 1,000 | 996 | ||||||
5.00%, 11/1/39 | 350 | 388 | ||||||
Cook County Community College District No. 504 Triton Alternative Revenue Source G.O. Unlimited Bonds, | 5,000 | 5,617 | ||||||
Illinois State Finance Authority Revenue Bonds, Series A, Art Institute Chicago, | 4,850 | 5,491 | ||||||
5.25%, 3/1/40 | 2,500 | 2,731 | ||||||
Illinois State Finance Authority Revenue Bonds, Series A, Depaul University, | 5,000 | 5,870 | ||||||
Illinois State Municipal Electric Agency Power Supply Revenue Bonds, Series A (NATL Insured), | 5,000 | 5,457 | ||||||
Illinois State Tax Supported Sports Facilities Authority Revenue Refunding Bonds (AGM Insured), | 5,500 | 6,123 |
See Notes to the Financial Statements.
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SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 92.7% – continued | ||||||||
Illinois – 8.7% – continued | ||||||||
Illinois State Toll Highway Authority Revenue Refunding Bonds, Series B, | $10,500 | $11,662 | ||||||
Illinois State Toll Highway Authority Revenue Refunding Bonds, Series B (BHAC-CR Insured), | 5,000 | 5,573 | ||||||
Regional Transportation Authority Revenue Bonds, Series A (AGM G.O. of Authority Insured), | 3,400 | 4,357 | ||||||
Springfield Water Revenue Bonds, | 2,300 | 2,585 | ||||||
Will Grundy Etc. Counties Community College District No. 525 Alternative Revenue Source G.O. Unlimited Refunding Bonds, Series B, | 2,500 | 2,815 | ||||||
67,602 | ||||||||
Indiana – 2.2% | ||||||||
Indiana Finance Authority Wastewater Utility Revenue Bonds, Series A, First Lien, CWA Authority, | 2,650 | 3,007 | ||||||
Indiana Finance Authority Water Utility Revenue Bonds, Series A, First Lien, Citizens Energy Group, | 5,000 | 5,482 | ||||||
Indiana State Educational Facilities Finance Authority Revenue Bonds, Valparaiso University Project, | 2,500 | 2,770 | ||||||
Indiana State Office Building Commission Revenue Bonds, Series B (NATL-RE Insured), Escrowed to Maturity, | 2,010 | 2,111 | ||||||
Indianapolis Gas Utility Revenue Refunding Bonds, Series B (NATL Insured), | 3,280 | 3,545 | ||||||
16,915 | ||||||||
Louisiana – 0.7% | ||||||||
East Baton Rouge Parish Sewer Commission Revenue Bonds, Series A, | 5,000 | 5,629 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 92.7% – continued | ||||||||
Maryland – 2.6% | ||||||||
Baltimore County Metropolitan District G.O. Unlimited Refunding Bonds, Series B, | $2,120 | $2,206 | ||||||
Baltimore Water Project Revenue Refunding Bonds, Series B, | 2,000 | 2,266 | ||||||
Maryland State G.O. Unlimited Bonds, Second Series B, | 3,315 | 3,363 | ||||||
Maryland State G.O. Unlimited Refunding Bonds, Series 2-C, | 10,000 | 12,233 | ||||||
20,068 | ||||||||
Massachusetts – 4.5% | ||||||||
Massachusetts State Bay Transportation Authority Sales TRB, Senior Series B, | 1,900 | 2,409 | ||||||
Massachusetts State G.O. Limited Refunding Bonds, Series B (AMBAC-TCRS-BNY Insured), | 5,875 | 7,551 | ||||||
Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series N, Massachusetts Institute of Technology (G.O. of University Insured), Prerefunded, | 5,000 | 5,603 | ||||||
Massachusetts State School Building Authority Sales TRB, Series A (AGM Insured), Prerefunded, | 645 | 672 | ||||||
Massachusetts State School Building Authority Sales TRB, | 3,000 | 3,127 | ||||||
Massachusetts State Water Pollution Abatement Trust Revenue Bonds, Series 14, State Revolving Fund, Prerefunded, | 10,000 | 11,797 | ||||||
Massachusetts State Water Pollution Abatement Trust Revenue Bonds, Subseries A, MWRA Program, | 3,000 | 3,669 | ||||||
34,828 |
See Notes to the Financial Statements.
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Table of Contents
SCHEDULE OF INVESTMENTS
TAX-EXEMPT FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 92.7% – continued | ||||||||
Michigan – 1.1% | ||||||||
Michigan State Building Authority Facilities Program Revenue Refunding Bonds, Series I-A, | $2,565 | $2,907 | ||||||
Michigan State Building Authority Facilities Program Revenue Refunding Bonds, Series II-A, | 5,000 | 5,612 | ||||||
8,519 | ||||||||
Minnesota – 0.7% | ||||||||
Farmington Independent School District No. 192 G.O. Unlimited Bonds, Series B, School Building Project (AGM School District Credit Program Insured), | 5,000 | 5,076 | ||||||
Mississippi – 0.0% | ||||||||
Mississippi State Home Corp. SFM Revenue Bonds, Series C-2 (AMT) (GNMA/FNMA/FHLMC Insured), | 15 | 15 | ||||||
Missouri – 0.2% | ||||||||
Missouri State Health & Educational Facilities Authority Revenue Refunding Bonds, Series A, SSM Health Care, | 1,000 | 1,191 | ||||||
Montana – 0.1% | ||||||||
Montana State Board of Regents Higher Education Facilities Improvement Revenue Bonds, Montana State University, | 525 | 616 | ||||||
Nebraska – 1.2% | ||||||||
Omaha Public Power District Revenue Bonds, Series B, | 5,355 | 6,135 | ||||||
Omaha Public Power District System Revenue Bonds, Series A, | 2,500 | 2,804 | ||||||
8,939 | ||||||||
Nevada – 0.8% | ||||||||
Clark County Airport System Revenue Bonds, Series C, Sub Lien (AGM Insured), | 1,670 | 1,881 | ||||||
Clark County G.O. Limited Tax Bank Bonds, | 2,500 | 2,761 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 92.7% – continued | ||||||||
Nevada – 0.8% – continued | ||||||||
Washoe County Highway Revenue Bonds, Fuel Tax, | $1,750 | $1,919 | ||||||
6,561 | ||||||||
New Hampshire – 1.6% | ||||||||
New Hampshire State Health & Education Facilities Authority Revenue Bonds, Dartmouth College, Health University System, | 11,000 | 12,631 | ||||||
New Jersey – 1.8% | ||||||||
New Jersey State Economic Development Authority Revenue Refunding Bonds, Series PP, School Facilities Construction Project (AGM-CR Insured), | 5,000 | 5,822 | ||||||
New Jersey State Economic Development Authority Revenue Refunding Bonds, Series PP, School Facilities Construction Project, | 2,500 | 2,837 | ||||||
New Jersey State Turnpike Authority Growth & Income Securities Revenue Bonds, Series B (AMBAC Insured), | 5,000 | 5,189 | ||||||
13,848 | ||||||||
New Mexico – 0.3% | ||||||||
New Mexico State SFM Finance Authority Revenue Bonds, Series I-C-2 (Collateralized by GNMA/ FNMA/FHLMC Securities), | 2,070 | 2,210 | ||||||
New York – 16.6% | ||||||||
Long Island Power Authority General Revenue Bonds, Series A, | 5,000 | 5,881 | ||||||
Metropolitan Transportation Authority Dedicated Tax Fund Revenue Bonds, Series A, | 10,000 | 11,427 | ||||||
Metropolitan Transportation Authority Dedicated Tax Fund Revenue Bonds, Series B, | 5,000 | 5,671 | ||||||
Metropolitan Transportation Authority Revenue Bonds, Series G, | 5,000 | 5,727 |
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 76 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED)
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 92.7% – continued | ||||||||
New York – 16.6% – continued | ||||||||
New York City Municipal Finance Authority Water & Sewer System Fiscal Revenue Bonds, Series BB, Second General Resolution, | $2,500 | $2,748 | ||||||
New York City Municipal Finance Authority Water & Sewer System Revenue Bonds, Series A, Fiscal 2009, | 10,000 | 11,502 | ||||||
New York City Municipal Finance Authority Water&SewerSystem Revenue Bonds, Series CC, Second General Resolution, | 13,000 | 13,104 | ||||||
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries A-1, | 2,500 | 2,821 | ||||||
New York State Dormitory Authority Non State Supported Debt Revenue Bonds, Series B, School Districts Financing Program (Assured Guaranty Insured State Aid Withholding), | 5,000 | 5,739 | ||||||
New York State Dormitory Authority Non State Supported Debt Revenue Bonds, Series C, School Districts Financing Program (State Aid Withholding), | 1,000 | 1,109 | ||||||
New York State Dormitory Education Authority Personal Income Tax Revenue Refunding Bonds, Series B (AMBAC Insured), | 5,000 | 6,450 | ||||||
New York State Dormitory Education Authority Personal Income Tax Revenue Refunding Bonds, Series B (AMBAC Insured), | 2,025 | 2,607 | ||||||
New York State Dormitory Education Authority Personal Income TRB, Series B, | 11,980 | 14,001 | ||||||
New York State Environmental Facilities Corp. Clean & Drinking Water Revenue Bonds, Series B, Municipal Water Revolving Funds, | 10,000 | 11,194 | ||||||
New York State Environmental Facilities Corp. Clean & Drinking Water Revenue Bonds, Series B, Revolving Funds Pooled Financing Program, | 5,000 | 6,508 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 92.7% – continued | ||||||||
New York – 16.6% – continued | ||||||||
New York State Thruway Authority Revenue Bonds, Series J, | $50 | $59 | ||||||
New York State Thruway Transportation Authority Personal Income TRB, Series A, | 5,000 | 5,646 | ||||||
Port Authority of New York & New Jersey Consolidated-One Hundred Eighty-Third Revenue Bonds, | 1,500 | 1,541 | ||||||
Sales Tax Asset Receivable Corp. Revenue Bonds, Series A (NATL-RE Insured), | 5,000 | 5,011 | ||||||
5.00%, 10/15/24 | 10,000 | 10,020 | ||||||
128,766 | ||||||||
North Carolina – 2.3% | ||||||||
Charlotte COPS, Series B, | 2,000 | 2,080 | ||||||
North Carolina State Eastern Municipal Power Agency System Revenue Bonds, Series A, Escrowed to Maturity, | 2,655 | 3,151 | ||||||
North Carolina State Eastern Municipal Power Agency System Revenue Refunding Bonds, Series B (NATL-RE-IBC Insured), | 6,015 | 7,471 | ||||||
North Carolina State G.O. Unlimited Refunding Bonds, Series A, | 5,000 | 5,163 | ||||||
17,865 | ||||||||
Ohio – 0.3% | ||||||||
Fairfield City School Improvement District G.O. Unlimited Bonds (School District Credit Program), | 2,340 | 2,630 | ||||||
Oklahoma – 0.4% | ||||||||
Stillwater Utilities Authority Revenue Bonds, Series A, | 3,000 | 3,434 | ||||||
Pennsylvania – 0.3% | ||||||||
Pennsylvania State Economic Development Financing Authority Revenue Bonds, Series A, UPMC, | 2,220 | 2,497 |
See Notes to the Financial Statements.
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SCHEDULE OF INVESTMENTS
TAX-EXEMPT FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 92.7% – continued | ||||||||
South Carolina – 2.8% | ||||||||
Piedmont Municipal Power Agency Electric Revenue Bonds, Series 2004, Unrefunded Balance (BHAC-CR MBIA Insured), | $5,940 | $7,241 | ||||||
South Carolina State Public Service Authority Revenue Bonds, Series A, Santee Cooper Project, | 13,000 | 14,823 | ||||||
22,064 | ||||||||
Texas – 6.3% | ||||||||
Cypress-Fairbanks Independent School District G.O. Unlimited Bonds, Series B-1 (PSF-Gtd.), | 5,000 | 5,356 | ||||||
Dallas Independent School District Building G.O. Unlimited Bonds (PSF-Gtd.), Prerefunded, | 5,000 | 5,928 | ||||||
El Paso G.O. Limited Bonds, Certificates of Obligation, | 5,000 | 5,069 | ||||||
Frisco Independent School District Building G.O. Unlimited Bonds, Series A (PSF-Gtd.), | 5,000 | 5,841 | ||||||
Grand Prairie Independent School District G.O. Unlimited Refunding CABS, | 12,505 | 5,592 | ||||||
Houston Combined Utility System Revenue Refunding Bonds, Series D, First Lien, | 2,500 | 2,868 | ||||||
Houston Higher Education Finance Corp. Revenue Bonds, Series B, Rice University Project, | 2,500 | 2,680 | ||||||
Lower Colorado River Authority Revenue Refunding & Improvement Bonds, Series A, Prerefunded, | 10 | 12 | ||||||
Lower Colorado River Authority Revenue Refunding & Improvement Bonds, Series A, Unrefunded Balance, | 9,990 | 11,518 | ||||||
San Antonio Electric & Gas System Revenue Bonds, Series A, Prerefunded, | 3,725 | 3,960 | ||||||
48,824 |
PRINCIPAL (000s) | VALUE (000s) | |||||||
MUNICIPAL BONDS – 92.7% – continued | ||||||||
Vermont – 0.7% | ||||||||
University of Vermont & State Agricultural College Revenue Refunding Bonds, | $5,000 | $5,129 | ||||||
Washington – 2.1% | ||||||||
Washington State G.O. Unlimited Bonds, Series B & AT-7, | 4,025 | 4,410 | ||||||
Washington State G.O. Unlimited Bonds, Series D (AMBAC Insured), Prerefunded, | 10,925 | 11,568 | ||||||
15,978 | ||||||||
West Virginia – 0.1% | ||||||||
West Virginia University Projects Revenue Bonds, Series A, | 1,000 | 1,124 | ||||||
Total Municipal Bonds | ||||||||
(Cost $669,349) | 719,188 | |||||||
NUMBER OF SHARES | VALUE (000s) | |||||||
INVESTMENT COMPANIES – 4.0% | ||||||||
Northern Institutional Funds - Tax-Exempt Portfolio, 0.01% (3)(4) | 31,072,560 | $31,073 | ||||||
Total Investment Companies | ||||||||
(Cost $31,073) | 31,073 | |||||||
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
SHORT-TERM INVESTMENTS – 4.9% | ||||||||
California State RANS, | $20,000 | $20,199 | ||||||
Houston Independent School District G.O. Limited VRDB, Series A (PSF-Gtd.), | 8,000 | 8,032 | ||||||
Milwaukee Cash Flow G.O. Unlimited Promissory Notes, Series R, | 10,000 | 10,020 | ||||||
Total Short-Term Investments | ||||||||
(Cost $38,256) | 38,251 | |||||||
Total Investments – 101.6% | ||||||||
(Cost $738,678) | 788,512 | |||||||
Liabilities less Other Assets – (1.6)% | (12,176 | ) | ||||||
NET ASSETS—100.0% | $776,336 |
See Notes to the Financial Statements.
TAX-EXEMPT FIXED INCOME FUNDS | 78 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
(1) | Zero coupon bond reflects effective yield on the date of purchase. |
(2) | When-Issued Security. |
(3) | At March 31, 2014, the value of the Fund’s investment in the Tax-Exempt Portfolio of the Northern Institutional Funds was approximately $24,297,000 with net purchases of approximately $6,776,000 during the six months ended September 30, 2014. |
(4) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
Percentages shown are based on Net Assets.
At September 30, 2014, the credit quality distribution for the Fund as a percentage of investments including cash was:
QUALITY DISTRIBUTION* | % OF INVESTMENTS | |||
AAA | 13.5% | |||
AA | 52.0 | |||
A | 26.8 | |||
A1+ | 3.8 | |||
Cash and Equivalents | 3.9 | |||
Not Rated | 0.0 | (1) | ||
Total | 100.0% |
(1) | Amount rounds to less than 0.1%. |
* Credit quality ratings are based on converting the available Moody’s, Standard & Poor’s, and/or Fitch ratings to a common numerical basis and averaging that result. If none of these three rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). The Standard & Poor’s short-term municipal rating of SP1 reflects a strong capacity to pay principal and interest (an issue determined to possess a very strong capacity to pay debt service is given a plus (+) designation). The Moody’s short-term municipal rating of MIG1 denotes superior credit quality (excellent protection is afforded by established cash flows, highly reliable liquidity support or demonstrated broad-based access to the market for refinancing). The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.
At September 30, 2014, the industry sectors for the Fund were:
INDUSTRY SECTOR | % OF INVESTMENTS | |||
Airport | 6.0% | |||
General | 15.8 | |||
General Obligation | 16.2 | |||
Higher Education | 7.5 | |||
Power | 8.3 | |||
School District | 5.5 | |||
Transportation | 8.9 | |||
Utilities | 5.3 | |||
Water | 17.2 | |||
All other sectors less than 5% | 9.3 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Municipal Bonds | $ – | $719,188 | (1) | $ – | $719,188 | |||||||||||
Investment Companies | 31,073 | – | – | 31,073 | ||||||||||||
Short-Term Investments | – | 38,251 | – | 38,251 | ||||||||||||
Total Investments | $31,073 | $757,439 | $ – | $788,512 |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 79 | TAX-EXEMPT FIXED INCOME FUNDS |
Table of Contents
TAX-EXEMPT FIXED INCOME FUNDS
SEPTEMBER 30, 2014 (UNAUDITED) |
EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULES OF INVESTMENTS | ||||||
AGM | Assured Guaranty Municipal Corporation | IBC | Insured Bond Certificates | |||
AMBAC | American Municipal Bond Assurance Corporation | IDA | Individual Development Accounts | |||
AMT | Alternative Minimum Tax | NATL | National Public Finance Guarantee Corporation | |||
BAM | Build America Mutual | NATL RE | NATL Reinsurance | |||
BANS | Bond Anticipation Notes | MBIA | Municipal Bond Insurance Association | |||
BHAC | Berkshire Hathaway Assurance Corporation | MWRA | Massachusetts Water Resources Authority | |||
CABS | Capital Appreciation Bonds | PCR | Pollution Control Revenue | |||
COPS | Certificates of Participation | PFA | Public Finance Authority | |||
CR | Custody Receipt | PSF | Permanent School Fund | |||
EDA | Economic Development Agency | Q-SBLF | Qualified School Bond Loan Fund | |||
FGIC | Financial Guaranty Insurance Corporation | RANS | Revenue Anticipation Notes | |||
FHLMC | Federal Home Loan Mortgage Corporation | SCSDE | South Carolina School District Enhancement | |||
FNMA | Federal National Mortgage Association | SFM | Single Family Mortgage | |||
GANS | Grant Anticipation Notes | TCRS | Transferable Custodial Receipts | |||
GNMA | Government National Mortgage Association | TRANS | Tax Revenue Anticipation Notes | |||
G.O. | General Obligation | TRB | Tax Revenue Bonds | |||
Gtd. | Guaranteed | XLCA | XL Capital Assurance | |||
HFDC | Health Facilities Development Corp. |
The interest rates reflected in the Schedules of Investments represent either the stated coupon rate, annualized yield on date of purchase for discount notes, the current reset rate for floating rate securities, the 7-day yield for money market funds or, for interest-only or principal-only securities, the current effective yield.
Maturity dates represent the stated date on the security or the puttable date for floating and variable 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 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.
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1. ORGANIZATION
Northern Funds (the “Trust”) is a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust offers 48 funds as of September 30, 2014, each with its own investment objective (e.g., long-term capital appreciation, total return or income consistent with preservation of capital). The Arizona Tax-Exempt, California Intermediate Tax-Exempt, California Tax-Exempt, High Yield Municipal, Intermediate Tax-Exempt, Short-Intermediate Tax-Exempt, and Tax-Exempt Funds (each, a “Fund” and collectively, the “Funds”) are separate investment portfolios of the Trust, all of which are diversified portfolios except for the Arizona Tax-Exempt, California Intermediate Tax-Exempt and California Tax-Exempt 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 is presented herein.
Northern Trust Investments, Inc. (“NTI”), a subsidiary of The Northern Trust Company (“Northern Trust”), serves as the investment adviser for each of the Funds. Northern Trust serves as the custodian and transfer agent for the Trust. NTI serves as the Trust’s administrator. Northern Funds Distributors, LLC is the Trust’s distributor.
2. SIGNIFICANT ACCOUNTING POLICIES
The Trust, which is an investment company within the scope of Financial Accounting Standards Board (“FASB”) Accounting Standards Update 2013-08, follows accounting and reporting guidance under FASB Accounting Standards Codification Topic 946, “Financial Services-Investment Companies”.
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“U.S.”), or “U.S. GAAP”. The preparation of financial statements in conformity with U.S. 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 may differ from those estimates.
The net asset value (“NAV”) of each Fund is determined daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), generally 3:00 P.M. Central Time, on each day the NYSE is open for trading.
A) VALUATION OF SECURITIES Securities are valued at their fair value. Equity securities traded on U.S. securities exchanges or in the NASDAQ National Market System are principally valued at the regular trading session closing price (generally, 3:00 P.M. Central Time) on the exchange or market in which such securities are principally traded. If any such security is not traded on a valuation date, it is valued at the most recent quoted bid price. Over-the-counter securities not reported in the NASDAQ National Market System are also generally valued at the most recent quoted bid price. Fixed income securities, however, may be valued on the basis of evaluated prices provided by independent pricing services when such prices are believed to reflect the fair value of such securities or broker-provided prices. Such prices may be determined by taking into account other similar securities’ prices, yields, maturities, call features, ratings, institutional size trading in similar groups of securities and developments related to specific securities.
The values of securities of foreign issuers are generally based upon market quotations which, depending upon local convention or regulation, may be the last sale price, the last bid price or the mean between the last bid and asked price as of, in each case, the close of the appropriate exchange or other designated time. Foreign fixed income securities, however, may, like domestic fixed income securities, be valued based on evaluated prices provided by independent pricing services when such prices are believed to reflect the fair value of such securities.
Shares of open-end investment companies are valued at their NAV. Short-term investments with a maturity of 60 days or less are valued at their amortized cost, which NTI, as authorized by the Board of Trustees (the “Board”), has determined approximates fair value.
Any securities for which market quotations are not readily available or are believed to be incorrect are valued at fair value as determined in good faith by NTI under the supervision of the Board. The Trust, in its discretion, may make adjustments to the prices of securities held by a Fund if an event occurs after the publication of fair values normally used by a Fund but before the time as of which the Fund calculates its NAV, depending on the nature and significance of the event, consistent with applicable regulatory guidance and U.S. GAAP.
Northern Trust’s Pricing Unit (the “NT Pricing Unit”) is responsible for supplying a value for each portfolio security used in the NAV computations. Securities or other assets for which market quotations are not readily available or for which market quotations do not represent the value at the time of pricing are fair valued in accordance with policies and procedures established by, and subject to oversight of, the Funds’ Board. NTI has established a pricing and valuation committee (the “Asset Management PVC”) whose membership includes representatives of NTI, as well as independent control personnel from Northern Trust’s
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Legal and Fund Administration and NTI’s Compliance and Risk Management groups. The Asset Management PVC is responsible for the fair valuation of portfolio securities and the monitoring of the fair valuation process, subject to the Board’s oversight.
The Asset Management PVC is responsible for making the determination of the fair value of a security. In making its determination, the Asset Management PVC considers factors that it deems appropriate to the determination of the fair value of the security. Such factors include, but are not limited to, the type of security; the current financial position of the issuer; the cost of the investment; information as to any transactions or offers with respect to a security; market value of a similar freely-traded security; and news events. NTI will continue to monitor markets and the issuer’s circumstances that affect a security’s valuation to determine the continued appropriateness of a security’s fair valuation. The Asset Management PVC will review if the markets and issuer’s circumstances relevant to the valuation of a fair valued security change materially.
For each Level 3 security, if any, that has been fair valued pursuant to the policies adopted by the Board, the fair value price is compared against the last available and next available market quotations. The results of such back testing and fair valued securities are reported quarterly to the Valuation Committee of the Board.
The use of fair valuation involves the risk that the values used by the Funds to price their investments may be higher or lower than the values used by other unaffiliated investment companies and investors to price the same investments.
B) CREDIT ENHANCEMENTS Certain investments owned by the Funds are covered by insurance issued by private insurers, are backed by an escrow or trust containing U.S. Government securities or U.S. Government agency securities, or are otherwise supported by letters of credit, standby purchase agreements or other liquidity facilities. Such enhancements may ensure the timely payment of the security’s principal and interest or may shorten the security’s maturity. However, such enhancements do not guarantee the fair value of the securities or the value of a Fund’s shares. Additionally, there is no guarantee that an insurer will meet its obligations. For example, the insurers’ exposure to securities involving sub-prime mortgages may cause a municipal bond insurer’s rating to be downgraded or may cause the bond insurer to become insolvent, which may affect the prices and liquidity of municipal obligations insured by the insurer.
C) WHEN-ISSUED/DELAYED DELIVERY SECURITIES Certain Funds purchase securities with delivery or payment to occur at a later date beyond the normal settlement period. At the time a Fund enters into the commitment to purchase a security, the transaction is recorded and the value of the commitment is reflected in the NAV. The value of the commitment may vary with market fluctuations. No interest accrues to a Fund until settlement takes place. At the time a Fund enters into this type of transaction, it is required to segregate collateral of cash or other liquid assets having a fair value at least equal to the amount of the commitment. When-issued securities at September 30, 2014, if any, are noted in each Fund’s Schedule of Investments and in aggregate as Payable for when-issued securities, in each Fund’s Statement of Assets and Liabilities.
D) INVESTMENT TRANSACTIONS AND INCOME Investment transactions are recorded as of the trade date. The Funds determine the gain or loss realized from investment transactions by using an identified cost basis method. Interest income is recognized on an accrual basis and includes amortization of premiums and accretion of discounts using the effective yield method. The interest rates reflected in the Schedules of Investments represent either the stated coupon rate, annualized yield on date of purchase for discount notes, the current reset rate for floating rate securities, the 7-day yield for money market funds or, for interest-only or principal-only securities, the current effective yield. Certain Funds received dividend income from investments in investment companies during the six months ended September 30, 2014. Cost of investments includes amortization of premiums and accretion of discounts, if any. Dividend income is recognized on the ex-dividend date. The Funds’ income may be subject to certain state and local taxes and, depending on an individual shareholder’s tax status, the federal alternative minimum tax.
E) EXPENSES Each Fund is charged for those expenses that are directly attributable to that Fund. Expenses incurred which do not specifically relate to an individual Fund are allocated among all Funds in the Trust in proportion to each Fund’s relative net assets.
F) DISTRIBUTIONS TO SHAREHOLDERS Distributions of dividends from net investment income are declared and paid as follows:
DECLARATION FREQUENCY | PAYMENT FREQUENCY | |||||||
Arizona Tax-Exempt | Daily | Monthly | ||||||
California Intermediate Tax-Exempt | Daily | Monthly | ||||||
California Tax-Exempt | Daily | Monthly | ||||||
High Yield Municipal | Daily | Monthly | ||||||
Intermediate Tax-Exempt | Daily | Monthly | ||||||
Short-Intermediate Tax-Exempt | Daily | Monthly | ||||||
Tax-Exempt | Daily | Monthly |
Distributions of net realized capital gains, if any, are declared and paid 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
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regulations may differ from financial statement amounts determined in accordance with U.S. GAAP due to differences in the treatment and recognition of investment income and realized gains and losses. These differences are primarily related to the deferral of certain realized losses and capital loss carryforwards. Inherent differences in the recognition of income and capital gains for federal income tax purposes, which are permanent, may result in periodic reclassifications in the Funds’ capital accounts. These reclassifications have no impact on the net assets or the net asset value per share of the Funds.
At March 31, 2014, the following reclassifications were recorded:
Amounts in thousands | UNDISTRIBUTED NET INVESTMENT INCOME | ACCUMULATED UNDISTRIBUTED NET REALIZED LOSSES | CAPITAL STOCK | |||||||||
Short-Intermediate | $ — | $285 | $(285) | |||||||||
Tax-Exempt | 4 | (4 | ) | — |
G) FEDERAL INCOME TAXES No provision for federal income taxes has been made since each Fund’s policy is to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute, each year, substantially all of its taxable income and capital gains to its shareholders.
For the period subsequent to October 31, 2013 through the fiscal year ended March 31, 2014, the following Funds incurred net capital losses and/or net currency losses, which each Fund intends to treat as having been incurred in the following fiscal year (in thousands):
California Intermediate Tax-Exempt | $5 | |||
California Tax-Exempt | 173 | |||
High Yield Municipal | 324 | |||
Short-Intermediate Tax-Exempt | 148 | |||
Tax-Exempt | 1,910 |
The Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated the eight-year limit on the use of capital loss carryforwards that arise in taxable years beginning after its enactment date of December 22, 2010. The changes became effective for the Funds for the fiscal year ended March 31, 2012. Consequently, capital losses incurred by the Funds in taxable years beginning with the taxable year ended March 31, 2012 can be carried forward for an unlimited period. However, capital losses incurred by the Funds in taxable years beginning before the taxable year ended March 31, 2012 with an expiration date may not be used to offset capital gains until all net capital losses incurred in taxable years beginning with the taxable year ended March 31, 2012 without an expiration date have been utilized. As a result, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The Funds’ ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
At March 31, 2014, the capital loss carryforwards for U.S. federal income tax purposes and their respective years of expiration were as follows:
Amount in thousands | MARCH 31, 2018 | MARCH 31, 2019 | ||||||
High Yield Municipal | $23,276 | $12,268 |
The Fund in the above table may offset future capital gains with these capital loss carryforwards.
Capital losses incurred that will be carried forward indefinitely under the provisions of the Act are as follows (in thousands):
Fund | SHORT-TERM CAPITAL LOSS CARRYFORWARD | LONG-TERM CAPITAL LOSS CARRYFORWARD | ||||||
Arizona Tax Exempt | $454 | $ — | ||||||
California Intermediate Tax-Exempt | 5,337 | — | ||||||
California Tax-Exempt | 2,560 | — | ||||||
Intermediate Tax-Exempt | 16,549 | — | ||||||
Short-Intermediate Tax-Exempt | 704 | 254 | ||||||
Tax-Exempt | 25,181 | 932 |
At March 31, 2014, the tax components of undistributed net investment income, undistributed realized gains and unrealized gains (losses) were as follows:
UNDISTRIBUTED | ||||||||||||||||
Amounts in thousands | TAX-EXEMPT INCOME | ORDINARY INCOME* | LONG-TERM CAPITAL GAINS | UNREALIZED GAINS/ (LOSSES) | ||||||||||||
Arizona Tax-Exempt | $49 | $ — | $ — | $5,108 | ||||||||||||
California Intermediate Tax-Exempt | 196 | 1 | — | 16,349 | ||||||||||||
California Tax-Exempt | 87 | — | — | 10,134 | ||||||||||||
High Yield Municipal | 216 | 3 | — | 15,820 |
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UNDISTRIBUTED | ||||||||||||||||
Amounts in thousands | TAX-EXEMPT INCOME | ORDINARY INCOME* | LONG-TERM CAPITAL GAINS | UNREALIZED GAINS/ (LOSSES) | ||||||||||||
Intermediate Tax-Exempt | $841 | $— | $— | $47,993 | ||||||||||||
Short-Intermediate Tax-Exempt | 73 | — | — | 24,244 | ||||||||||||
Tax-Exempt | 318 | — | — | 39,458 |
* | Ordinary income includes taxable market discount income and short-term capital gains, if any. |
The tax character of distributions paid during the fiscal year ended March 31, 2014 was as follows:
DISTRIBUTIONS FROM | ||||||||||||
Amounts in thousands | TAX-EXEMPT INCOME | ORDINARY INCOME* | LONG-TERM CAPITAL GAINS | |||||||||
Arizona Tax-Exempt | $3,320 | $198 | $127 | |||||||||
California Intermediate | 11,066 | 364 | 230 | |||||||||
California Tax-Exempt | 4,764 | 1,943 | 333 | |||||||||
High Yield Municipal | 12,616 | 289 | — | |||||||||
Intermediate Tax-Exempt | 55,372 | 6,851 | 3,515 | |||||||||
Short-Intermediate Tax-Exempt | 17,761 | — | 285 | |||||||||
Tax-Exempt | 34,222 | 9,012 | 2,483 |
* | Ordinary income includes taxable market discount income and short-term capital gains, if any. |
The tax character of distributions paid during the fiscal year ended March 31, 2013, was as follows:
DISTRIBUTIONS FROM | ||||||||||||
Amounts in thousands | TAX-EXEMPT INCOME | ORDINARY INCOME* | LONG-TERM CAPITAL GAINS | |||||||||
Arizona Tax-Exempt | $3,723 | $609 | $840 | |||||||||
California Intermediate | 10,579 | 3,016 | 1,528 | |||||||||
California Tax-Exempt | 4,696 | 4,055 | 361 | |||||||||
High Yield Municipal | 16,260 | 236 | — | |||||||||
Intermediate Tax-Exempt | 50,051 | 31,266 | 17,945 | |||||||||
Short-Intermediate Tax-Exempt | 16,659 | 317 | 3,682 | |||||||||
Tax-Exempt | 34,113 | 21,218 | 9,235 |
* | Ordinary income includes taxable market discount income and short-term capital gains, if any. |
As of March 31, 2014, no Fund had uncertain tax positions that would require financial statement recognition or disclosure. The Funds’ federal tax returns filed for the fiscal years ended March 31, 2011 through March 31, 2013 remain subject to examination by the Internal Revenue Service. Interest or penalties incurred, if any, on future unknown, uncertain tax positions taken by the Funds will be recorded as Interest expense on the Statements of Operations.
3. SERVICE PLAN
The Trust has adopted a Service Plan pursuant to which the Trust may enter into agreements with Northern Trust, its affiliates or other institutions (“Service Organizations”) under which the Service Organizations agree to provide certain administrative support services and, in some cases, personal and account maintenance services for their customers, who are beneficial owners of shares of the Funds. As compensation for services provided pursuant to the Service Plan, the Service Organizations receive a fee at an annual rate of up to 0.25 percent of the average daily net assets of the Funds beneficially owned by their customers. There were no shareholder servicing fees paid to Northern Trust or its affiliates during the six months ended September 30, 2014.
These expenses are included in the Statements of Operations under Shareholder servicing fees for the six months ended September 30, 2014.
4. BANK BORROWINGS
The Trust entered into a $150,000,000 senior unsecured revolving credit facility on November 25, 2013, which is administered by JPMorgan Chase Bank, N.A., for liquidity and other purposes (the “Credit Facility”). The interest rate charged under the Credit Facility is equal to the sum of (i) the Federal Funds Rate plus (ii) if the one-month London Interbank Offered Rate (“LIBOR”) on the date of borrowing exceeds such Federal Funds Rate, the amount by which it so exceeds, plus (iii) 1.00 percent. In addition, there is an annual commitment fee of 0.07 percent on the unused portion of the credit line under the Credit Facility, payable quarterly in arrears, which is included in Other expenses on the Statements of Operations.
At a meeting held on November 20, 2014, the Board approved an agreement that terminated, replaced and restated the Credit Facility (as so terminated, replaced and restated, the “New Credit Facility”). The New Credit Facility is in the amount of $250,000,000. The interest rate charged under the New Credit Facility is the same as it was for the Credit Facility. In addition, there is an annual commitment fee of 0.08 percent on the unused portion of the credit line under the New Credit Facility, payable quarterly in arrears. The New Credit Facility is anticipated to go into effect on November 24, 2014 and will expire on November 23, 2015, unless renewed.
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At September 30, 2014, the Funds did not have any outstanding borrowings.
The Funds did not have any borrowings or incur any interest expense during the six months ended September 30, 2014.
5. MANAGEMENT AND OTHER AGREEMENTS
Shareholders of each Fund have approved a new management agreement, effective June 30, 2014, between the Funds and NTI (the “Management Agreement”), to provide the Funds with investment advisory and administration services under a single agreement and fee structure. As compensation for advisory and administration services and the assumption of related expenses, NTI is entitled to a management fee, computed daily and payable monthly, at the annual rates set forth in the first table below (expressed as a percentage of each Fund’s respective average daily net assets). Prior to June 30, 2014, as compensation for advisory services and the assumption of related expenses, NTI was entitled to an advisory fee, computed daily and payable monthly, at the annual rates set forth in the second table below (expressed as a percentage of each Fund’s respective average daily net assets.) Prior to June 30, 2014, NTI, as administrator, was also entitled to an administration fee from the Funds at the annual rate of 0.15% of the average daily net assets of each Fund.
NTI has contractually agreed to reimburse a portion of the operating expenses of each Fund (other than acquired fund fees and expenses, the Fund’s proportionate share of the increase in compensation paid to each disinterested Trustee, expenses related to third-party consultants engaged by the Board of Trustees of the Trust, membership dues paid to the Investment Company Institute and Mutual Fund Directors Forum, and extraordinary expenses and interest) as shown on the accompanying Statements of Operations, to adhere to the expense limitations set forth below. The amount of the reimbursement is included in Less expenses reimbursed by investment adviser as a reduction to Total Expenses in the Statements of Operations.
At September 30, 2014, the annual management fees and contractual expense limitations for the Funds were based on the following annual rates as set forth in the table below.
CONTRACTUAL ANNUAL MANAGEMENT FEES | ||||||||||||||||
Fund | FIRST $1.5 BILLION | NEXT $1 BILLION | OVER $2.5 BILLION | CONTRACTUAL EXPENSE LIMITATIONS | ||||||||||||
Arizona Tax-Exempt | 0.43% | 0.417% | 0.404% | 0.45% | ||||||||||||
California Intermediate Tax-Exempt | 0.43% | 0.417% | 0.404% | 0.45% | ||||||||||||
California Tax-Exempt | 0.43% | 0.417% | 0.404% | 0.45% | ||||||||||||
High Yield Municipal | 0.77% | 0.747% | 0.725% | 0.80% | ||||||||||||
Intermediate Tax-Exempt | 0.43% | 0.417% | 0.404% | 0.45% | ||||||||||||
Short-Intermediate Tax-Exempt | 0.43% | 0.417% | 0.404% | 0.45% | ||||||||||||
Tax-Exempt | 0.43% | 0.417% | 0.404% | 0.45% |
Prior to June 30, 2014, the annual advisory fees for the Funds were based on the following annual rates as set forth in the table below. There was no change to the contractual expense limitations described above.
CONTRACTUAL ANNUAL ADVISORY FEES | ||||||||||||
Fund | FIRST $1.5 BILLION | NEXT $1 BILLION | OVER $2.5 BILLION | |||||||||
Arizona Tax-Exempt | 0.55 | % | 0.52 | % | 0.50 | % | ||||||
California Intermediate Tax-Exempt | 0.55 | % | 0.52 | % | 0.50 | % | ||||||
California Tax-Exempt | 0.55 | % | 0.52 | % | 0.50 | % | ||||||
High Yield Municipal | 0.65 | % | 0.61 | % | 0.59 | % | ||||||
Intermediate Tax-Exempt | 0.55 | % | 0.52 | % | 0.50 | % | ||||||
Short-Intermediate Tax-Exempt | 0.50 | % | 0.47 | % | 0.45 | % | ||||||
Tax-Exempt | 0.55 | % | 0.52 | % | 0.50 | % |
The contractual reimbursement arrangements described above are expected to continue until at least July 31, 2015. The contractual reimbursement arrangement will continue automatically for periods of one year (each such one year period, a “Renewal Year”). The arrangement may be terminated, as to any succeeding Renewal Year, by NTI or a Fund upon 60 days’ written notice prior to the end of the current Renewal Year. The Board may terminate the contractual arrangement at any time with respect to a Fund if it determines that it is in the best interest of the Fund and its shareholders.
Effective June 30, 2014, as compensation for services rendered as transfer agent, including the assumption by Northern Trust of the expenses related thereto, Northern Trust receives a fee, computed daily and payable monthly, at an annual rate of 0.015 percent of the average daily net assets outstanding for each of the Funds. Prior to June 30, 2014, Northern Trust received transfer agent fees at an annual rate of 0.10 percent of the average daily net assets, accrued daily and payable monthly. Transfer agent fees are reflected as Transfer agent fees in the Funds’ Statements of Operations.
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NTI has a sub-administration agreement with Northern Trust, pursuant to which Northern Trust performs certain administrative services for the Funds. NTI pays Northern Trust for its sub-administration services out of NTI’s management fees. Prior to June 30, 2014, these sub-administration services were paid out of NTI’s administration fees.
For compensation as custodian, Northern Trust receives an amount based on a pre-determined schedule of charges approved by the Board. The Funds have entered into an expense off-set arrangement with the custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Funds’ custodian expenses. Custodian credits, if any, are reflected as Less custodian credits in the Funds’ Statements of Operations.
Northern Funds Distributors, LLC, the distributor for the Funds, received no compensation from the Funds under its distribution agreement. However, it received compensation from NTI for its services as distributor pursuant to a separate letter agreement between it and NTI.
Certain officers of the Trust are also officers of Northern Trust and NTI. All officers serve without compensation from the Funds. The Trust provided a deferred compensation plan for its Trustees who are not officers of Northern Trust or NTI. Prior to August 22, 2013, under the deferred compensation plan, Trustees may have elected to defer all or a portion of their compensation. Effective August 22, 2013, the Trustees may no longer defer their compensation. Any amounts deferred and invested under the plan shall remain invested pursuant to the terms of the plan. Each Trustee’s account shall be deemed to be invested in shares of the Diversified Assets Portfolio of Northern Institutional Funds and/or the Global Tactical Asset Allocation Fund of the Trust and/or, at the discretion of the Trust, another money market fund selected by the Trust that complies with the provisions of Rule 2a-7 under the 1940 Act or one or more short-term fixed-income instruments selected by the Trust that are “eligible securities” as defined by that rule. The net investment income, gains and losses achieved by such deemed investment shall be credited to the Trustee’s account as provided in the plan.
6. RELATED PARTY TRANSACTIONS
Pursuant to an exemptive order issued by the Securities and Exchange Commission (“SEC”), each Fund invests its uninvested cash in a money market fund advised by NTI or its affiliates. Accordingly, each Fund will bear indirectly a proportionate share of that money market fund’s operating expenses. These operating expenses include the management, transfer agency and custody fees that the money market fund pays to NTI and/or its affiliates. The uninvested cash of the Arizona Tax-Exempt, High Yield Municipal, Intermediate Tax-Exempt, Short-Intermediate Tax-Exempt and Tax-Exempt Funds is invested in the Tax-Exempt Portfolio of Northern Institutional Funds and the uninvested cash of the California Intermediate Tax-Exempt and California Tax-Exempt Funds is invested in the Northern California Municipal Money Market Fund. The aggregate annual rate of management, transfer agency and custody fees payable to NTI and/or its affiliates on any assets invested in the Tax-Exempt Portfolio and Northern California Municipal Money Market Fund is 0.35 percent of average daily net assets. However, pursuant to the exemptive order, NTI will reimburse each Fund for advisory fees otherwise payable by the Fund on any assets invested in the Tax-Exempt Portfolio or Northern California Municipal Money Market Fund. This reimbursement is included in Less expenses reimbursed by investment adviser as a reduction to Total Expenses on the Statements of Operations. This reimbursement’s impact on each Fund’s net expenses and net investment income ratios is included in each Fund’s Financial Highlights. The exemptive order requires the Funds’ Board to determine before a vote on the Management Agreement that the advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds are not for duplicative services.
7. INVESTMENT TRANSACTIONS
For the six months ended September 30, 2014, the aggregate costs of purchases and proceeds from sales of securities (excluding short-term investments) for the Funds were as follows:
PURCHASES | SALES | |||||||||||||||
Amounts in thousands | U.S. GOVERNMENT | OTHER | U.S. GOVERNMENT | OTHER | ||||||||||||
Arizona Tax-Exempt | $ | — | $40,193 | $ | — | $28,586 | ||||||||||
California Intermediate Tax-Exempt | — | 228,975 | — | 208,693 | ||||||||||||
California Tax-Exempt | — | 152,276 | — | 136,884 | ||||||||||||
High Yield Municipal | — | 19,074 | — | 9,586 | ||||||||||||
Intermediate Tax-Exempt | — | 1,397,761 | — | 1,270,833 | ||||||||||||
Short-Intermediate Tax-Exempt | — | 199,465 | — | 162,613 | ||||||||||||
Tax-Exempt | — | 636,765 | — | 659,359 |
The difference between book basis and tax basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
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At September 30, 2014, for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation, net unrealized appreciation (depreciation) on investments and the cost basis of securities were as follows:
Amounts in thousands | UNREALIZED APPRECIATION | UNREALIZED DEPRECIATION | NET APPRECIATION (DEPRECIATION) | COST BASIS OF SECURITIES | ||||||||||||
Arizona Tax-Exempt | $ | 6,255 | $ | (2 | ) | $ | 6,253 | $ | 88,255 | |||||||
California Intermediate Tax-Exempt | 21,776 | (195 | ) | 21,581 | 402,600 | |||||||||||
California Tax-Exempt | 13,659 | (23 | ) | 13,636 | 123,932 | |||||||||||
High Yield Municipal | 27,769 | (2,792 | ) | 24,977 | 233,982 | |||||||||||
Intermediate Tax-Exempt | 77,082 | (2,131 | ) | 74,951 | 2,449,775 | |||||||||||
Short-Intermediate Tax-Exempt | 27,207 | (637 | ) | 26,570 | 1,379,072 | |||||||||||
Tax-Exempt | 50,182 | (348 | ) | 49,834 | 738,678 |
8. CAPITAL SHARE TRANSACTIONS
Transactions in capital shares for the six months ended September 30, 2014, were as follows:
Amounts in thousands | SHARES SOLD | PROCEEDS FROM SHARES SOLD | SHARES FROM REINVESTED DIVIDENDS | REINVESTMENT OF DIVIDENDS | SHARES REDEEMED | PAYMENTS FOR SHARES REDEEMED | NET INCREASE IN SHARES | NET INCREASE IN NET ASSETS | ||||||||||||||||||||||||
Arizona Tax-Exempt | 1,528 | $16,530 | 26 | $286 | (841 | ) | $(9,093 | ) | 713 | $7,723 | ||||||||||||||||||||||
California Intermediate Tax-Exempt | 6,289 | 67,629 | 53 | 571 | (3,593 | ) | (38,604 | ) | 2,749 | 29,596 | ||||||||||||||||||||||
California Tax-Exempt | 1,722 | 19,811 | 88 | 1,016 | (1,474 | ) | (16,980 | ) | 336 | 3,847 | ||||||||||||||||||||||
High Yield Municipal | 4,366 | 37,979 | 84 | 730 | (2,929 | ) | (25,478 | ) | 1,521 | 13,231 | ||||||||||||||||||||||
Intermediate Tax-Exempt | 23,024 | 243,506 | 404 | 4,277 | (16,662 | ) | (176,126 | ) | 6,766 | 71,657 | ||||||||||||||||||||||
Short-Intermediate Tax-Exempt | 21,730 | 228,025 | 72 | 751 | (14,525 | ) | (152,384 | ) | 7,277 | 76,392 | ||||||||||||||||||||||
Tax-Exempt | 7,320 | 77,865 | 225 | 2,393 | (6,732 | ) | (71,500 | ) | 813 | 8,758 |
Transactions in capital shares for the fiscal year ended March 31, 2014, were as follows:
Amounts in thousands | SHARES SOLD | PROCEEDS FROM SHARES SOLD | SHARES FROM REINVESTED DIVIDENDS | REINVESTMENT OF DIVIDENDS | SHARES REDEEMED | PAYMENTS FOR SHARES REDEEMED | NET INCREASE (DECREASE) IN SHARES | NET INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
Arizona Tax-Exempt | 2,151 | $22,797 | 85 | $899 | (5,788 | ) | $(60,791) | (3,552 | ) | $(37,095 | ) | |||||||||||||||||||||
California Intermediate Tax-Exempt | 13,241 | 138,415 | 126 | 1,310 | (17,369 | ) | (180,611 | ) | (4,002 | ) | (40,886 | ) | ||||||||||||||||||||
California Tax-Exempt | 2,439 | 27,525 | 332 | 3,668 | (6,077 | ) | (67,989 | ) | (3,306 | ) | (36,796 | ) | ||||||||||||||||||||
High Yield Municipal | 5,641 | 48,367 | 171 | 1,454 | (13,682 | ) | (116,705 | ) | (7,870 | ) | (66,884 | ) | ||||||||||||||||||||
Intermediate Tax-Exempt | 73,823 | 766,628 | 1,816 | 18,717 | (85,810 | ) | (887,188 | ) | (10,171 | ) | (101,843 | ) | ||||||||||||||||||||
Short-Intermediate Tax-Exempt | 61,188 | 641,883 | 147 | 1,548 | (45,643 | ) | (478,637 | ) | 15,692 | 164,794 | ||||||||||||||||||||||
Tax-Exempt | 13,362 | 139,558 | 1,501 | 15,344 | (50,552 | ) | (523,231 | ) | (35,689 | ) | (368,329 | ) |
NORTHERN FUNDS SEMIANNUAL REPORT | 87 | TAX-EXEMPT FIXED INCOME FUNDS |
Table of Contents
TAX-EXEMPT FIXED INCOME FUNDS
NOTES TO THE FINANCIAL STATEMENTS continued | SEPTEMBER 30, 2014 (UNAUDITED) |
9. INDEMNIFICATIONS AND WARRANTIES
In the ordinary course of their business, the Funds may enter into contracts or agreements that contain indemnifications or warranties. Future events could occur that lead to the execution of these provisions against the Funds. The maximum exposure to the Funds under these provisions is unknown, as this would involve future claims that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and believe the risk of loss to be remote.
10. SUBSEQUENT EVENTS
Management has evaluated subsequent events for the Funds through the date the financial statements were issued, and has concluded that there are no recognized or non-recognized subsequent events relevant for financial statement disclosure.
TAX-EXEMPT FIXED INCOME FUNDS | 88 | NORTHERN FUNDS SEMIANNUAL REPORT |
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TAX-EXEMPT FIXED INCOME FUNDS
SEPTEMBER 30, 2014 (UNAUDITED) |
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, if any; and (2) ongoing costs, including advisory fees and other fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, April 1, 2014 through September 30, 2014.
ACTUAL EXPENSES
The first line of the tables below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid 4/1/14 - 9/30/14” to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the tables below provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5 percent per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5 percent hypothetical example with the 5 percent hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads), redemption fees, or exchange fees or other costs such as advisory fees related to affiliated money market funds investments, but shareholders of other funds may incur such costs. If these fees were included, your costs would have been higher. The information does not reflect reimbursements on advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds (as described on page 86), which may result in different expense ratios in the Financial Highlights. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
ARIZONA TAX-EXEMPT
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/14 | ENDING ACCOUNT VALUE 9/30/14 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.46 | % | $ | 1,000.00 | $ | 1,039.20 | $ | 2.35 | ||||||||
Hypothetical** | 0.46 | % | $ | 1,000.00 | $ | 1,022.76 | $ | 2.33 |
CALIFORNIA INTERMEDIATE TAX-EXEMPT
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/14 | ENDING ACCOUNT VALUE 9/30/14 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.45 | % | $ | 1,000.00 | $ | 1,038.50 | $ | 2.30 | ||||||||
Hypothetical** | 0.45 | % | $ | 1,000.00 | $ | 1,022.81 | $ | 2.28 |
CALIFORNIA TAX-EXEMPT
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/14 | ENDING ACCOUNT VALUE 9/30/14 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.46 | % | $ | 1,000.00 | $ | 1,056.50 | $ | 2.37 | ||||||||
Hypothetical** | 0.46 | % | $ | 1,000.00 | $ | 1,022.76 | $ | 2.33 |
HIGH YIELD MUNICIPAL
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/14 | ENDING ACCOUNT VALUE 9/30/14 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.80 | % | $ | 1,000.00 | $ | 1,061.10 | $ | 4.13 | ||||||||
Hypothetical** | 0.80 | % | $ | 1,000.00 | $ | 1,021.06 | $ | 4.05 |
INTERMEDIATE TAX-EXEMPT
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/14 | ENDING ACCOUNT VALUE 9/30/14 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.45 | % | $ | 1,000.00 | $ | 1,030.30 | $ | 2.29 | ||||||||
Hypothetical** | 0.45 | % | $ | 1,000.00 | $ | 1,022.81 | $ | 2.28 |
* | Expenses are calculated using the Funds’ annualized expense ratios, which represent ongoing expenses as a percentage of net assets for the six months ended September 30, 2014. Expenses are calculated by multiplying the annualized expense ratio by the average account value over the period; then multiplying the result by the number of days in the most recent fiscal half year (183); and then dividing that result by the number of days in the current fiscal year (365). |
** | Hypothetical expenses are based on the Funds’ actual annualized expense ratios and an assumed rate of return of 5 percent per year before expenses. |
NORTHERN FUNDS SEMIANNUAL REPORT | 89 | TAX-EXEMPT FIXED INCOME FUNDS |
Table of Contents
TAX-EXEMPT FIXED INCOME FUNDS
FUND EXPENSES continued | SEPTEMBER 30, 2014 (UNAUDITED) |
SHORT-INTERMEDIATE TAX-EXEMPT
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/14 | ENDING ACCOUNT VALUE 9/30/14 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.45 | % | $ | 1,000.00 | $ | 1,009.80 | $ | 2.27 | ||||||||
Hypothetical** | 0.45 | % | $ | 1,000.00 | $ | 1,022.81 | $ | 2.28 |
TAX-EXEMPT
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/14 | ENDING ACCOUNT VALUE 9/30/14 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.45 | % | $ | 1,000.00 | $ | 1,046.40 | $ | 2.31 | ||||||||
Hypothetical** | 0.45 | % | $ | 1,000.00 | $ | 1,022.81 | $ | 2.28 |
* | Expenses are calculated using the Funds’ annualized expense ratios, which represent ongoing expenses as a percentage of net assets for the six months ended September 30, 2014. Expenses are calculated by multiplying the annualized expense ratio by the average account value over the period; then multiplying the result by the number of days in the most recent fiscal half year (183); and then dividing that result by the number of days in the current fiscal year (365). |
** | Hypothetical expenses are based on the Funds’ actual annualized expense ratios and an assumed rate of return of 5 percent per year before expenses. |
TAX-EXEMPT FIXED INCOME FUNDS | 90 | NORTHERN FUNDS SEMIANNUAL REPORT |
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TAX-EXEMPT FIXED INCOME FUNDS
THIS PAGE INTENTIONALLY LEFT BLANK
NORTHERN FUNDS SEMIANNUAL REPORT | 91 | TAX-EXEMPT FIXED INCOME FUNDS |
Table of Contents
TAX-EXEMPT FIXED INCOME FUNDS
PORTFOLIO HOLDINGS
Northern Funds files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s Web site at sec.gov. You may also review and obtain copies at the SEC’s Public Reference Room in Washington, D.C. Information about the Public Reference Room may be obtained by calling 800-SEC-0330.
PROXY VOTING
Northern Funds’ Proxy Voting Policies and Procedures and each Fund’s portfolio securities voting record for the 12-month period ended June 30 are available upon request and without charge by visiting Northern Funds’ Web site at northernfunds.com or the SEC’s Web site at sec.gov or by calling the Northern Funds Center at 800-595-9111.
TAX-EXEMPT FIXED INCOME FUNDS | 92 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
MONEY MARKET FUNDS
TABLE OF CONTENTS
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5 | ||||
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15 | ||||
22 | ||||
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47 | ||||
50 | ||||
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60 |
The 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.
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 forward-looking 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.
Investments in the Funds are not insured or guaranteed by the FDIC or any other governmental agency. Although each Fund seeks to maintain a value of $1.00 per share, it is possible to lose money by investing.
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 SEMIANNUAL REPORT | 1 | MONEY MARKET FUNDS |
Table of Contents
MONEY MARKET FUNDS
STATEMENTS OF ASSETS AND LIABILITIES | SEPTEMBER 30, 2014 (UNAUDITED) |
Amounts in thousands, except per share data | CALIFORNIA MUNICIPAL MONEY MARKET FUND | MONEY MARKET FUND | MUNICIPAL MONEY MARKET FUND | U.S. GOVERNMENT MONEY MARKET FUND | U.S. GOVERNMENT SELECT MONEY MARKET FUND | |||||||||||||||
ASSETS: | ||||||||||||||||||||
Investments, at amortized cost | $423,007 | $6,921,847 | $5,641,279 | $999,582 | $2,776,148 | |||||||||||||||
Repurchase agreements, at cost which approximates fair value | – | 732,404 | – | 465,712 | 672,572 | |||||||||||||||
Cash | 4,746 | 35,004 | 12 | 25,000 | 1 | |||||||||||||||
Interest income receivable | 119 | 3,518 | 2,236 | 61 | 174 | |||||||||||||||
Receivable for securities sold | 75 | 8,278 | 17,075 | – | – | |||||||||||||||
Receivable for fund shares sold | 1 | – | – | 79,585 | 2 | |||||||||||||||
Receivable from affiliates for expense reimbursements | 24 | 256 | 284 | 69 | 160 | |||||||||||||||
Prepaid and other assets | 6 | 37 | 21 | 7 | 21 | |||||||||||||||
Total Assets | 427,978 | 7,701,344 | 5,660,907 | 1,570,016 | 3,449,078 | |||||||||||||||
LIABILITIES: | ||||||||||||||||||||
Payable for securities purchased | – | 154,000 | 24,802 | 39,188 | 64,993 | |||||||||||||||
Payable for fund shares redeemed | – | 43,216 | 482 | 113 | – | |||||||||||||||
Distributions to shareholders | 4 | 63 | 47 | 12 | 28 | |||||||||||||||
Payable to affiliates: | ||||||||||||||||||||
Management fees (Note 5) | 24 | 413 | 308 | 78 | 185 | |||||||||||||||
Custody and accounting fees | 2 | 13 | 12 | 7 | 11 | |||||||||||||||
Transfer agent fees | 1 | 19 | 14 | 4 | 8 | |||||||||||||||
Trustee fees | 12 | 125 | 86 | 15 | 26 | |||||||||||||||
Accrued other liabilities | 19 | 154 | 88 | 32 | 56 | |||||||||||||||
Total Liabilities | 62 | 198,003 | 25,839 | 39,449 | 65,307 | |||||||||||||||
Net Assets | $427,916 | $7,503,341 | $5,635,068 | $1,530,567 | $3,383,771 | |||||||||||||||
ANALYSIS OF NET ASSETS: | ||||||||||||||||||||
Capital stock | $427,936 | $7,511,910 | $5,634,609 | $1,530,570 | $3,383,774 | |||||||||||||||
Accumulated undistributed net investment income (loss) | (11 | ) | (35 | ) | 151 | (6 | ) | (4 | ) | |||||||||||
Accumulated undistributed net realized gain (loss) | (9 | ) | (8,534 | ) | 308 | 3 | 1 | |||||||||||||
Net Assets | $427,916 | $7,503,341 | $5,635,068 | $1,530,567 | $3,383,771 | |||||||||||||||
Shares Outstanding ($.0001 par value, unlimited authorization) | 427,969 | 7,512,004 | 5,634,634 | 1,530,603 | 3,383,812 | |||||||||||||||
Net Asset Value, Redemption and Offering Price Per Share | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
See Notes to the Financial Statements.
MONEY MARKET FUNDS | 2 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
MONEY MARKET FUNDS
STATEMENTS OF OPERATIONS | SIX MONTHS ENDED SEPTEMBER 30, 2014 (UNAUDITED) |
Amounts in thousands | CALIFORNIA MUNICIPAL MONEY MARKET FUND | MONEY MARKET FUND | MUNICIPAL MONEY MARKET FUND | U.S. GOVERNMENT MONEY MARKET FUND | U.S. GOVERNMENT SELECT MONEY MARKET FUND | |||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||
Interest income | $151 | $6,589 | $2,730 | $682 | $1,647 | |||||||||||||||
Total Investment Income | 151 | 6,589 | 2,730 | 682 | 1,647 | |||||||||||||||
EXPENSES: | ||||||||||||||||||||
Management fees (Note 5) | 375 | 6,511 | 4,958 | 1,224 | 2,846 | |||||||||||||||
Investment advisory fees (Note 5) | 264 | 4,784 | 3,674 | 868 | 2,205 | |||||||||||||||
Administration fees (Note 5) | 106 | 1,913 | 1,469 | 347 | 882 | |||||||||||||||
Custody fees | 28 | 411 | 309 | 89 | 194 | |||||||||||||||
Accounting fees | 16 | 196 | 152 | 40 | 93 | |||||||||||||||
Transfer agent fees | 123 | 2,209 | 1,695 | 403 | 1,011 | |||||||||||||||
Registration fees | 6 | 34 | 25 | 16 | 20 | |||||||||||||||
Printing fees | 7 | 63 | 39 | 13 | 24 | |||||||||||||||
Professional fees | 17 | 67 | 45 | 23 | 34 | |||||||||||||||
Trustee fees | 9 | 106 | 74 | 17 | 35 | |||||||||||||||
Other | 5 | 44 | 29 | 10 | 19 | |||||||||||||||
Total Expenses | 956 | 16,338 | 12,469 | 3,050 | 7,363 | |||||||||||||||
Less expenses voluntarily reimbursed by investment adviser | (645 | ) | (7,466 | ) | (8,016 | ) | (1,913 | ) | (4,652 | ) | ||||||||||
Less expenses contractually reimbursed by investment adviser | (181 | ) | (2,669 | ) | (2,015 | ) | (526 | ) | (1,238 | ) | ||||||||||
Less custodian credits | (1 | ) | (2 | ) | (3 | ) | (1 | ) | – | |||||||||||
Net Expenses | 129 | 6,201 | 2,435 | 610 | 1,473 | |||||||||||||||
Net Investment Income | 22 | 388 | 295 | 72 | 174 | |||||||||||||||
NET REALIZED GAINS (LOSSES): | ||||||||||||||||||||
Net realized gains on: | ||||||||||||||||||||
Investments | – | 32 | 308 | 3 | 1 | |||||||||||||||
Net Gains | – | 32 | 308 | 3 | 1 | |||||||||||||||
Net Increase in Net Assets Resulting from Operations | $22 | $420 | $603 | $75 | $175 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 3 | MONEY MARKET FUNDS |
Table of Contents
MONEY MARKET FUNDS
STATEMENTS OF CHANGES IN NET ASSETS | FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2014 (UNAUDITED) |
OR THE FISCAL YEAR ENDED MARCH 31, 2014
CALIFORNIA MONEY MARKET FUND | MONEY MARKET FUND | MUNICIPAL MONEY MARKET FUND | U.S. GOVERNMENT MONEY MARKET FUND | U.S. GOVERNMENT SELECT MONEY MARKET FUND | ||||||||||||||||||||||||||||||||||||
Amounts in thousands | SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | ||||||||||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||||||||||||||||||
Net investment income | $22 | $40 | $388 | $798 | $295 | $609 | $72 | $107 | $174 | $315 | ||||||||||||||||||||||||||||||
Net realized gains on: Investments | – | – | 32 | 92 | 308 | 546 | 3 | 14 | 1 | 22 | ||||||||||||||||||||||||||||||
Net Increase in Net Assets Resulting from Operations | 22 | 40 | 420 | 890 | 603 | 1,155 | 75 | 121 | 175 | 337 | ||||||||||||||||||||||||||||||
CAPITAL | ||||||||||||||||||||||||||||||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | (25,926 | ) | 83,887 | (475,702 | ) | (597,840 | ) | (792,801 | ) | (229,742 | ) | 147,086 | 54,103 | (343,263 | ) | 189,420 | ||||||||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions | (25,926 | ) | 83,887 | (475,702 | ) | (597,840 | ) | (792,801 | ) | (229,742 | ) | 147,086 | 54,103 | (343,263 | ) | 189,420 | ||||||||||||||||||||||||
DISTRIBUTIONS PAID: | ||||||||||||||||||||||||||||||||||||||||
From net investment income | (22 | ) | (40 | ) | (383 | ) | (796 | ) | (294 | ) | (1,158 | ) | (72 | ) | (138 | ) | (174 | ) | (355 | ) | ||||||||||||||||||||
Total Distributions Paid | (22 | ) | (40 | ) | (383 | ) | (796 | ) | (294 | ) | (1,158 | ) | (72 | ) | (138 | ) | (174 | ) | (355 | ) | ||||||||||||||||||||
Total Increase (Decrease) in Net Assets | (25,926 | ) | 83,887 | (475,665 | ) | (597,746 | ) | (792,492 | ) | (229,745 | ) | 147,089 | 54,086 | (343,262 | ) | 189,402 | ||||||||||||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||||||||||||||||||
Beginning of period | 453,842 | 369,955 | 7,979,006 | 8,576,752 | 6,427,560 | 6,657,305 | 1,383,478 | 1,329,392 | 3,727,033 | 3,537,631 | ||||||||||||||||||||||||||||||
End of period | $427,916 | $453,842 | $7,503,341 | $7,979,006 | $5,635,068 | $6,427,560 | $1,530,567 | $1,383,478 | $3,383,771 | $3,727,033 | ||||||||||||||||||||||||||||||
Accumulated Undistributed Net Investment Income (Loss) | $(11 | ) | $(11 | ) | $(35 | ) | $(40 | ) | $151 | $150 | $(6 | ) | $(6 | ) | $(4 | ) | $(4 | ) |
(1) | The number of shares approximates the dollar amount of transactions. |
See Notes to the Financial Statements.
MONEY MARKET FUNDS | 4 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS
CALIFORNIA MUNICIPAL MONEY MARKET FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS ENDED SEPT. 30, 2014 (UNAUDITED) | YEAR ENDED MARCH 31, 2014 | YEAR ENDED MARCH 31, 2013 | YEAR ENDED MARCH 31, 2012 | YEAR ENDED MARCH 31, 2011 | YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income (loss) | – | (1) | – | (1) | – | (1) | – | (1) | – | (1) | – | (1) | ||||||||||||
Net realized and unrealized gains (losses) | – | (2) | – | (2) | – | (2) | – | (2) | – | (2) | – | (2) | ||||||||||||
Total from Investment Operations | – | – | – | – | – | – | ||||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income | – | (3) | – | (3) | – | (3) | – | (3) | – | (3) | – | (3) | ||||||||||||
Total Distributions Paid | – | – | – | – | – | – | ||||||||||||||||||
Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Total Return(4) | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.03 | % | 0.03 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $427,916 | $453,842 | $369,955 | $426,698 | $469,628 | $971,027 | ||||||||||||||||||
Ratio to average net assets of:(5) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits(6) | 0.06 | % | 0.08 | % | 0.16 | % | 0.16 | % | 0.27 | % | 0.34 | %(7) | ||||||||||||
Expenses, before reimbursements and credits(6) | 0.44 | % | 0.50 | % | 0.51 | % | 0.49 | % | 0.57 | % | 0.72 | % | ||||||||||||
Net investment income (loss), net of reimbursements and credits(6) | 0.01 | % | 0.01 | % | 0.00 | % | 0.01 | % | 0.00 | % | (0.01 | )% | ||||||||||||
Net investment loss, before reimbursements and credits(6) | (0.37 | )% | (0.41 | )% | (0.35 | )% | (0.32 | )% | (0.30 | )% | (0.39 | )% |
(1) | Per share amount from net investment income (loss) was less than $0.01 per share. |
(2) | Per share amounts from net realized and unrealized gains (losses) were less than $0.01 per share. |
(3) | Per share amount from distributions paid from net investment income was less than $0.01 per share. |
(4) | 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. Total return is not annualized for periods less than one year. |
(5) | Annualized for periods less than one year. |
(6) | The impact on Net Assets due to any custody credits is less than 0.001%. |
(7) | The net expense ratio includes the fee for participation in the U.S. Department of the Treasury’s Temporary Guaranty Program (the “Participation Fee”) of approximately $306,000 which represents 0.03% of average net assets for the fiscal year ended March 31, 2010. Absent the Participation Fee, the net expenses would have been decreased by a corresponding amount. |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 5 | MONEY MARKET FUNDS |
Table of Contents
MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS continued
MONEY MARKET FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS ENDED SEPT. 30, 2014 (UNAUDITED) | YEAR ENDED MARCH 31, 2014 | YEAR ENDED MARCH 31, 2013 | YEAR ENDED MARCH 31, 2012 | YEAR ENDED MARCH 31, 2011 | YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | – | (1) | – | (1) | – | (1) | – | (1) | – | (1) | – | (1) | ||||||||||||
Net realized and unrealized gains (losses) | – | (2) | – | (2) | – | (2) | – | (2) | – | (2) | – | (2) | ||||||||||||
Total from Investment Operations | – | – | – | – | – | – | ||||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income | – | (3) | – | (3) | – | (3) | – | (3) | – | (3) | – | (3) | ||||||||||||
Total Distributions Paid | – | – | – | – | – | – | ||||||||||||||||||
Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Total Return(4) | 0.01 | % | 0.01 | % | 0.01 | % | 0.02 | % | 0.03 | % | 0.05 | %(5) | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $7,503,341 | $7,979,006 | $8,576,752 | $7,276,346 | $7,419,896 | $7,682,040 | ||||||||||||||||||
Ratio to average net assets of:(6) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits(7) | 0.16 | % | 0.18 | % | 0.24 | % | 0.18 | % | 0.30 | % | 0.47 | %(8) | ||||||||||||
Expenses, before reimbursements and credits(7) | 0.42 | % | 0.48 | % | �� | 0.48 | % | 0.48 | % | 0.55 | % | 0.70 | % | |||||||||||
Net investment income, net of reimbursements and credits(7) | 0.01 | % | 0.01 | % | 0.01 | % | 0.02 | % | 0.02 | % | 0.05 | % | ||||||||||||
Net investment loss, before reimbursements and credits(7) | (0.25 | )% | (0.29 | )% | (0.23 | )% | (0.28 | )% | (0.23 | )% | (0.18 | )% |
(1) | Per share amount from net investment income was less than $0.01 per share. |
(2) | Per share amounts from net realized and unrealized gains (losses) were less than $0.01 per share. |
(3) | Per share amount from distributions paid from net investment income was less than $0.01 per share. |
(4) | 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. Total return is not annualized for periods less than one year. |
(5) | Without the value of the Capital Support Agreement, the total return would have been 0.23% for the fiscal year ended March 31, 2010. |
(6) | Annualized for periods less than one year. |
(7) | The impact on Net Assets due to any custody credits is less than 0.001%. |
(8) | The net expense ratio includes the fee for participation in the U.S. Department of the Treasury’s Temporary Guaranty Program (the “Participation Fee”) of approximately $1,976,000 which represents 0.02% of average net assets for the fiscal year ended March 31, 2010. Absent the Participation Fee, the net expenses would have been decreased by a corresponding amount. |
See Notes to the Financial Statements.
MONEY MARKET FUNDS | 6 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
MUNICIPAL MONEY MARKET FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS ENDED SEPT. 30, 2014 (UNAUDITED) | YEAR ENDED | YEAR ENDED | YEAR ENDED | YEAR ENDED | YEAR ENDED | ||||||||||||||||||
Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | – | (1) | – | (1) | – | (1) | – | (1) | – | (1) | – | (1) | ||||||||||||
Net realized and unrealized gains (losses) | – | (2) | – | (2) | – | (2) | – | (2) | – | (2) | – | (2) | ||||||||||||
Total from Investment Operations | – | – | – | – | – | – | ||||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income | – | (3) | – | (3) | – | (3) | – | (3) | – | (3) | – | (3) | ||||||||||||
Total Distributions Paid | – | – | – | – | – | – | ||||||||||||||||||
Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Total Return(4) | 0.01 | % | 0.02 | % | 0.01 | % | 0.01 | % | 0.02 | % | 0.08 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $5,635,068 | $6,427,560 | $6,657,305 | $7,015,764 | $6,688,741 | $6,404,996 | ||||||||||||||||||
Ratio to average net assets of:(5) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits(6) | 0.08 | % | 0.10 | % | 0.17 | % | 0.16 | % | 0.29 | % | 0.45 | %(7) | ||||||||||||
Expenses, before reimbursements and credits(6) | 0.42 | % | 0.48 | % | 0.48 | % | 0.48 | % | 0.54 | % | 0.70 | % | ||||||||||||
Net investment income, net of reimbursements and credits(6) | 0.01 | % | 0.01 | % | 0.01 | % | 0.02 | % | 0.03 | % | 0.09 | % | ||||||||||||
Net investment loss, before reimbursements and credits(6) | (0.33 | )% | (0.37 | )% | (0.30 | )% | (0.30 | )% | (0.22 | )% | (0.16 | )% |
(1) | Per share amount from net investment income was less than $0.01 per share. |
(2) | Per share amounts from net realized and unrealized gains (losses) were less than $0.01 per share. |
(3) | Per share amount from distributions paid from net investment income was less than $0.01 per share. |
(4) | 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. Total return is not annualized for periods less than one year. |
(5) | Annualized for periods less than one year. |
(6) | The impact on Net Assets due to any custody credits is less than 0.001%. |
(7) | The net expense ratio includes the fee for participation in the U.S. Department of the Treasury’s Temporary Guaranty Program (the “Participation Fee”) of approximately $1,450,000 which represents 0.02% of average net assets for the fiscal year ended March 31, 2010. Absent the Participation Fee, the net expenses would have been decreased by a corresponding amount. |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 7 | MONEY MARKET FUNDS |
Table of Contents
MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS continued
U.S. GOVERNMENT MONEY MARKET FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS ENDED SEPT. 30, 2014 (UNAUDITED) | YEAR ENDED | YEAR ENDED | YEAR ENDED | YEAR ENDED | YEAR ENDED | ||||||||||||||||||
Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | – | (1) | – | (1) | – | (1) | – | (1) | – | (1) | – | (1) | ||||||||||||
Net realized and unrealized gains (losses) | – | (2) | – | (2) | – | (2) | – | (2) | – | (2) | – | (2) | ||||||||||||
Total from Investment Operations | – | – | – | – | – | – | ||||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income | – | (3) | – | (3) | – | (3) | – | (3) | – | (3) | – | (3) | ||||||||||||
Total Distributions Paid | – | – | – | – | – | – | ||||||||||||||||||
Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Total Return(4) | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.02 | % | 0.01 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $1,530,567 | $1,383,478 | $1,329,392 | $1,351,140 | $1,626,601 | $1,445,539 | ||||||||||||||||||
Ratio to average net assets of:(5) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits(6) | 0.08 | % | 0.10 | % | 0.17 | % | 0.12 | % | 0.23 | % | 0.32 | %(7) | ||||||||||||
Expenses, before reimbursements and credits(6) | 0.42 | % | 0.48 | % | 0.48 | % | 0.49 | % | 0.54 | % | 0.71 | % | ||||||||||||
Net investment income, net of reimbursements and credits(6) | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | ||||||||||||
Net investment loss, before reimbursements and credits(6) | (0.33 | )% | (0.37 | )% | (0.30 | )% | (0.36 | )% | (0.30 | )% | (0.38 | )% |
(1) | Per share amount from net investment income was less than $0.01 per share. |
(2) | Per share amounts from net realized and unrealized gains (losses) were less than $0.01 per share. |
(3) | Per share amount from distributions paid from net investment income was less than $0.01 per share. |
(4) | 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. Total return is not annualized for periods less than one year. |
(5) | Annualized for periods less than one year. |
(6) | The impact on Net Assets due to any custody credits is less than 0.001%. |
(7) | The net expense ratio includes the fee for participation in the U.S. Department of the Treasury’s Temporary Guaranty Program (the “Participation Fee”) of approximately $325,000 which represents 0.02% of average net assets for the fiscal year ended March 31, 2010. Absent the Participation Fee, the net expenses would have been decreased by a corresponding amount. |
See Notes to the Financial Statements.
MONEY MARKET FUNDS | 8 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
U.S. GOVERNMENT SELECT MONEY MARKET FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS ENDED SEPT. 30, 2014 (UNAUDITED) | YEAR ENDED | YEAR ENDED | YEAR ENDED | YEAR ENDED | YEAR ENDED | ||||||||||||||||||
Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | — | (1) | — | (1) | — | (1) | — | (1) | — | (1) | — | (1) | ||||||||||||
Net realized and unrealized gains (losses) | — | (2) | — | (2) | — | (2) | — | (2) | — | (2) | — | (2) | ||||||||||||
Total from Investment Operations | — | — | — | — | — | — | ||||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income | — | (3) | — | (3) | — | (3) | — | (3) | — | (3) | — | (3) | ||||||||||||
Total Distributions Paid | — | — | — | — | — | — | ||||||||||||||||||
Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Total Return(4) | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $3,383,771 | $3,727,033 | $3,537,631 | $3,436,678 | $3,122,906 | $3,411,618 | ||||||||||||||||||
Ratio to average net assets of:(5) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits(6) | 0.08 | % | 0.10 | % | 0.15 | % | 0.09 | % | 0.20 | % | 0.31 | %(7) | ||||||||||||
Expenses, before reimbursements and credits(6) | 0.42 | % | 0.48 | % | 0.48 | % | 0.48 | % | 0.55 | % | 0.69 | % | ||||||||||||
Net investment income, net of reimbursements and credits(6) | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | ||||||||||||
Net investment loss, before reimbursements and credits(6) | (0.33 | )% | (0.37 | )% | (0.32 | )% | (0.38 | )% | (0.34 | )% | (0.37 | )% |
(1) | Per share amount from net investment income was less than $0.01 per share. |
(2) | Per share amounts from net realized and unrealized gains (losses) were less than $0.01 per share. |
(3) | Per share amount from distributions paid from net investment income was less than $0.01 per share. |
(4) | 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. Total return is not annualized for periods less than one year. |
(5) | Annualized for periods less than one year. |
(6) | The impact on Net Assets due to any custody credits is less than 0.001%. |
(7) | The net expense ratio includes the fee for participation in the U.S. Department of the Treasury’s Temporary Guaranty Program (the “Participation Fee”) of approximately $539,000 which represents 0.01% of average net assets for the fiscal year ended March 31, 2010. Absent the Participation Fee, the net expenses would have been decreased by a corresponding amount. |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 9 | MONEY MARKET FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
CALIFORNIA MUNICIPAL MONEY MARKET FUND
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 98.9% | ||||||||
California – 98.9% | ||||||||
Alameda County IDA Revenue VRDB, Convergent Laser Tech, (Wells Fargo Bank N.A. LOC), | $4,135 | $4,135 | ||||||
Alameda Public Financing Authority VRDB, Series A, Alameda Point Improvement Project, (MUFG Union Bank N.A. LOC), | 1,700 | 1,700 | ||||||
California Educational Facilities Authority Adjustable Revenue Refunding Bonds, Stanford University, Series L, | 300 | 300 | ||||||
California Educational Facilities Authority Adjustable Revenue Refunding Bonds, Stanford University, Series L-3, | 200 | 200 | ||||||
California Educational Facilities Authority Adjustable Revenue Refunding Bonds, Stanford University, Series L-4, | 2,390 | 2,390 | ||||||
California Health Facilities Financing Authority Revenue VRDB, Adventist Health System, West, Series B, (U.S. Bank N.A. LOC), | 9,150 | 9,150 | ||||||
California Health Facilities Financing Authority Revenue VRDB, Catholic Healthcare, Series H, (Wells Fargo Bank N.A. LOC), | 5,900 | 5,900 | ||||||
California Housing Finance Agency Revenue VRDB, Series B, Home Mortgage, | 9,100 | 9,100 | ||||||
California Infrastructure & Economic Development Bank Refunding Revenue VRDB, Series C, Pacific Gas & Electric, (Sumitomo Mitsui Banking Corp. LOC), | 5,350 | 5,350 | ||||||
California Infrastructure & Economic Development Bank Revenue Refunding VRDB, Pacific Gas Electric, Series B, (Mizuho Bank Ltd. LOC), | 27,375 | 27,375 | ||||||
California Infrastructure & Economic Development Bank Revenue VRDB, Pinewood School Project, (Comerica Bank LOC), | 8,900 | 8,900 |
PRINCIPAL (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 98.9% – continued | ||||||||
California – 98.9% – continued | ||||||||
California Infrastructure & Economic Development Bank Revenue VRDB, Southern California Public Radio Project, (JPMorgan Chase Bank N.A. LOC), | $2,100 | $2,100 | ||||||
California Municipal Finance Authority Revenue VRDB, Westmont College, Series A, (Comerica Bank LOC), | 5,460 | 5,460 | ||||||
California Pollution Control Financing Authority Adjustable Revenue Refunding Bonds, PCR Daily Paper, Pacific Gas & Electric, Series C, (JPMorgan Chase Bank N.A. LOC), | 6,000 | 6,000 | ||||||
California Pollution Control Financing Authority Revenue Refunding Bonds, Pacific Gas & Electric, Series F, (JPMorgan Chase Bank N.A. LOC), | 3,100 | 3,100 | ||||||
California Pollution Control Financing Authority Revenue VRDB, Big Bear Disposal, Inc. Project, Solid Waste, (MUFG Union Bank N.A. LOC), | 2,210 | 2,210 | ||||||
California Pollution Control Financing Authority Solid Waste Disposal Revenue VRDB, Mission Trail Waste, (Comerica Bank LOC), | 2,440 | 2,440 | ||||||
California State Educational Facilities Authority Adjustable Revenue Refunding Bonds, Series L-2, Stanford University, | 150 | 150 | ||||||
California State Educational Facilities Authority Adjustable Revenue Refunding Bonds, Series L-5, Stanford University, | 100 | 100 | ||||||
California State Educational Facilities Authority Adjustable Revenue Refunding Bonds, Series L-6, Stanford University, | 300 | 300 | ||||||
California State School Cash Reserve Program Authority Revenue Notes, Series E, | 2,000 | 2,028 | ||||||
California State University Municipal Interest Bearing CP, | 11,031 | 11,031 |
See Notes to the Financial Statements.
MONEY MARKET FUNDS | 10 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 98.9% – continued | ||||||||
California – 98.9% – continued | ||||||||
California Statewide Communities Development Authority Multifamily Housing Revenue VRDB, Broadway Studios Apartments, (FHLB of San Francisco LOC), | $14,800 | $14,800 | ||||||
California Statewide Communities Development Authority Multifamily Housing Revenue VRDB, Encanto Homes Apartments, (FHLB of San Francisco LOC), | 10,400 | 10,400 | ||||||
California Statewide Communities Development Authority Multifamily Housing Revenue VRDB, Pine View Apartments, Series A, (Citibank N.A. LOC), | 1,200 | 1,200 | ||||||
California Statewide Communities Development Authority Multifamily Housing Revenue VRDB, South Shore Apartments, Series M, (FHLB of San Francisco LOC), | 10,290 | 10,290 | ||||||
California Statewide Communities Development Authority Multifamily Revenue VRDB, Varenna Assisted Living, (FHLB of San Francisco LOC), | 7,785 | 7,785 | ||||||
California Statewide Communities Development Authority Revenue VRDB, Development at Robert Louis Stevenson, (U.S. Bank N.A. LOC), | 6,700 | 6,700 | ||||||
Castaic Lake Water Agency California Revenue COPS VRDB, 1994 Refunding Project, (Wells Fargo Bank N.A. LOC), | 4,000 | 4,000 | ||||||
City & County of San Francisco California Multifamily Housing Revenue Refunding VRDB, Post Street Towers, Series A, (FHLMC LOC), | 8,100 | 8,100 | ||||||
City of Carlsbad California Multifamily Housing Revenue Refunding VRDB, Santa Fe Ranch Apartments Project, (FHLMC LOC), | 6,420 | 6,420 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 98.9% – continued | ||||||||
California – 98.9% – continued | ||||||||
City of Fresno California Multifamily Housing Revenue Refunding VRDB, Heron Pointe Apartments, Series A, (FNMA LOC), | $6,065 | $6,065 | ||||||
City of Livermore California COPS VRDB, Capital Projects, (U.S. Bank N.A. LOC), | 1,485 | 1,485 | ||||||
City of Los Angeles G.O. Unlimited TRANS, | 2,500 | 2,525 | ||||||
City of Manhattan Beach California COPS Refunding VRDB, (MUFG Union Bank N.A. LOC), | 2,115 | 2,115 | ||||||
City of Oceanside California Multifamily Housing Revenue VRDB, Shadow Way, Non AMT, (FHLMC LOC), | 1,500 | 1,500 | ||||||
City of Salinas California Economic Development Revenue VRDB, Monterey County Public Building, Series A, (Bank of New York Mellon LOC), | 100 | 100 | ||||||
Corona California Multifamily Housing Revenue Refunding VRDB, Country Hills Project, (FHLMC LOC), | 4,600 | 4,600 | ||||||
County of Los Angeles G.O. Unlimited TRANS, | 4,450 | 4,496 | ||||||
County of Riverside Teeter Obligation Revenue Notes, Series D, | 2,000 | 2,002 | ||||||
County of San Bernardino G.O. Unlimited TRANS, Series A, | 5,000 | 5,070 | ||||||
Golden Empire Schools Financing Authority Lease Revenue Floating Revenue Bonds, Variable Notes, Kern High School District, | 4,630 | 4,630 | ||||||
Golden State Tobacco Securitization Corp. Tobacco Settlement Adjustable Revenue Bonds, Eagle-20130013, Class A, (Berkshire Hathaway, Inc. Insured), | 9,900 | 9,900 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 11 | MONEY MARKET FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
CALIFORNIA MUNICIPAL MONEY MARKET FUND continued
PRINCIPAL (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 98.9% – continued | ||||||||
California – 98.9% – continued | ||||||||
Irvine Ranch Water District VRDB, Series B, Improvement Consolidated, (Bank of America N.A. LOC), | $16,265 | $16,265 | ||||||
Irvine Ranch Water District VRDB, Special Assessment, Districts Numbers 140-240-105-250, (Bank of New York Mellon LOC), | 6,700 | 6,700 | ||||||
Kern Community College District Variable Refunding COPS, | 4,500 | 4,500 | ||||||
Los Angeles California Multifamily Revenue Refunding VRDB, Mountainback, (FHLMC LOC), | 8,240 | 8,240 | ||||||
Los Angeles Department of Water & Power Revenue VRDB, | 5,000 | 5,000 | ||||||
Los Angeles Department of Water & Power Waterworks Revenue VRDB, Subseries B-2, | 11,000 | 11,000 | ||||||
Metropolitan Water District of Southern California Revenue Refunding VRDB, Series D, | 7,500 | 7,500 | ||||||
Nuveen California Dividend Advantage Municipal Fund 3 VRDP, | 7,000 | 7,000 | ||||||
Nuveen California Dividend Advantage Municipal Fund Tax-Exempt Preferred Floating VRDP, Series 5, | 5,000 | 5,000 | ||||||
Orange County California Apartment Development Adjustable Revenue Refunding Bonds, Larkspur Canyon Apartments, Series A, (FNMA LOC), | 7,435 | 7,435 | ||||||
Riverside County California COPS VRDB, Aces-Riverside County Public Facilities, Series B, (State Street Bank & Trust Co. LOC), | 850 | 850 | ||||||
Riverside County California COPS VRDB, Aces-Riverside County Public Facilities, Series C, (State Street Bank & Trust Co. LOC), | 500 | 500 |
PRINCIPAL (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 98.9% – continued | ||||||||
California – 98.9% – continued | ||||||||
Riverside County Multifamily Housing Authority Revenue Refunding VRDB, Series C, Tyler Springs Apartments, (FNMA LOC), | $7,800 | $7,800 | ||||||
Sacramento County Multifamily Housing Authority Revenue Refunding VRDB, Ashford, Series D, (FNMA LOC), | 5,580 | 5,580 | ||||||
Sacramento County Multifamily Housing Authority Revenue Refunding VRDB, Seasons at Winter, Series C-2, (FHLMC LOC), | 7,100 | 7,100 | ||||||
Sacramento Municipal Utility District Revenue Refunding VRDB, Series J, (Bank of America N.A. LOC), | 10,000 | 10,000 | ||||||
San Bernardino County California Multifamily Revenue Refunding VRDB, Housing Mortgage Mountain View, (FNMA LOC), | 7,260 | 7,260 | ||||||
San Francisco City & County Airports Community International Airport Revenue Refunding VRDB, Second Series 37C, (MUFG Union Bank N.A. LOC), | 4,895 | 4,895 | ||||||
Southern California Public Power Authority Revenue VRDB, Natural Gas Project, | 5,065 | 5,065 | ||||||
State of California Adjustable G.O. Unlimited Bonds, Series A-1, Kindergarten, (Citibank N.A. LOC), | 11,940 | 11,940 | ||||||
State of California Adjustable G.O. Unlimited Bonds, Series B-1, Kindergarten, (Citibank N.A. LOC), | 8,950 | 8,950 | ||||||
State of California G.O. Unlimited VRDB, Series B, Subseries B-3, (Barclays Bank PLC LOC), | 7,000 | 7,000 |
See Notes to the Financial Statements.
MONEY MARKET FUNDS | 12 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 98.9% – continued | ||||||||
California – 98.9% – continued | ||||||||
State of California Municipal Interest Bearing CP, (Wells Fargo Bank N.A. LOC), | $15,000 | $15,000 | ||||||
State of California Revenue Anticipation Notes, | 4,500 | 4,545 | ||||||
Sunnyvale COPS Refunding VRDB, Government Center Site, Series A, (MUFG Union Bank N.A. LOC), | 2,305 | 2,305 | ||||||
Tahoe Forest Hospital District California Revenue VRDB, Health Facility, (U.S. Bank N.A. LOC), | 2,450 | 2,450 | ||||||
West Hills Community College District COPS VRDB, (MUFG Union Bank N.A. LOC), | 13,025 | 13,025 | ||||||
Western Municipal Water District Facilities Authority Revenue Refunding Bonds, Series A, (MUFG Union Bank N.A. LOC), | 6,500 | 6,500 | ||||||
423,007 | ||||||||
Total Municipal Investments | ||||||||
(Cost $423,007) | 423,007 | |||||||
Total Investments – 98.9% | ||||||||
(Cost $423,007) (3) | 423,007 | |||||||
Other Assets less Liabilities –1.1% | 4,909 | |||||||
NET ASSETS – 100.0% | $427,916 |
(1) | Maturity date represents the next interest reset date. The security’s legal final maturity date is longer than the reset date. Securities with longer maturity dates have a greater sensitivity to changes in liquidity and/or credit risk. |
(2) | 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. The value of these securities is determined in accordance with procedures established by the Trustees of Northern Funds. |
(3) | The cost for federal income tax purposes was $423,007. |
Percentages shown are based on Net Assets.
At September 30, 2014, the industry sectors for the Fund were:
INDUSTRY SECTOR | % OF TOTAL INVESTMENTS | |||
Air, Transportation, Water Services and Solid Waste Management | 18.1% | |||
Educational Services | 14.7 | |||
Electric Services, Power and Utility | 6.5 | |||
Executive, Legislative & General Government | 6.6 | |||
Miscellaneous Revenues | 8.7 | |||
Urban and Community Development, Housing Programs and Social Services | 29.2 | |||
All other sectors less than 5% | 16.2 | |||
Total | 100.0% |
At September 30, 2014, the maturity analysis for the Fund as a percentage of investments was:
MATURITY ANALYSIS | % | |||
Overnight | 45.3% | |||
2 – 15 Days | 46.5 | |||
61 – 97 Days | 3.7 | |||
181 – 270 Days | 1.7 | |||
271 – 366 Days | 2.8 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 13 | MONEY MARKET FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
CALIFORNIA MUNICIPAL MONEY MARKET FUND continued | SEPTEMBER 30, 2014 (UNAUDITED) |
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments, which are carried at amortized cost, which approximates fair value, by the above fair value hierarchy as of September 30, 2014:
LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | |||||||||||||
Investments held by California Municipal Money Market Fund | $ – | $423,007 | (1)(2) | $ – | $423,007 |
(1) | Classifications as defined in the Schedule of Investments. |
(2) | Investments held by the Fund are valued at amortized cost and therefore are classified as Level 2. NTI categorizes an investment in the Fund as Level 1, due to quoted market prices being available in active markets. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
MONEY MARKET FUNDS | 14 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
MONEY MARKET FUND | SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
ABS COMMERCIAL PAPER – 3.5% | ||||||||
ABS Other – 3.5% | ||||||||
Alpine Securitization Corp., | $39,000 | $38,995 | ||||||
Bedford Row Funding Corp., | 24,000 | 23,996 | ||||||
Collateralized Commercial Paper Co. LLC, | 31,515 | 31,489 | ||||||
Collateralized Commercial Paper II Co., | 31,215 | 31,188 | ||||||
Crown Point Capital Co. LLC, | 20,000 | 20,000 | ||||||
Kells Funding LLC, | 11,545 | 11,545 | ||||||
Lexington Parker Capial Co. LLC, | 40,000 | 40,000 | ||||||
Victory Receivables Corp., | 19,115 | 19,114 | ||||||
0.16%, 10/20/14 (1) | 20,000 | 19,998 | ||||||
0.16%, 10/21/14 | 11,000 | 10,999 | ||||||
0.16%, 10/23/14 (1) | 14,000 | 13,999 | ||||||
261,323 | ||||||||
Total ABS Commercial Paper | ||||||||
(Cost $261,323) | 261,323 | |||||||
ASSET-BACKED SECURITIES – 1.2% | ||||||||
ABS Other – 0.6% | ||||||||
CNH Equipment Trust, | 16,547 | 16,547 | ||||||
GE Equipment Transportation LLC, Series 2014-1, Class A1, | 11,379 | 11,379 | ||||||
John Deere Owner Trust, | 17,926 | 17,925 | ||||||
45,851 | ||||||||
Car Loan – 0.6% | ||||||||
Fifth Third Auto Trust, | 1,463 | 1,463 | ||||||
Ford Credit Auto Owner Trust, | 6,215 | 6,215 | ||||||
Honda Auto Receivables Owner Trust, | 5,572 | 5,572 |
PRINCIPAL (000s) | VALUE (000s) | |||||||
ASSET-BACKED SECURITIES – 1.2% – continued | ||||||||
Car Loan – 0.6% – continued | ||||||||
Mercedes - Benz Auto Receivables Trust, Series 2014-1, Class A1, | $31,349 | $31,349 | ||||||
44,599 | ||||||||
Total Asset-Backed Securities | ||||||||
(Cost $90,450) | 90,450 | |||||||
CERTIFICATES OF DEPOSIT – 39.3% | ||||||||
Banking – 39.3% | ||||||||
Bank of America N.A., | 45,000 | 45,000 | ||||||
0.26%, 4/1/15 | 20,000 | 20,000 | ||||||
Bank of America N.A., New York Branch, | 23,000 | 23,000 | ||||||
0.26%, 3/16/15 | 40,000 | 40,000 | ||||||
Bank of Montreal, Chicago Branch, | 32,000 | 32,000 | ||||||
0.18%, 11/13/14 | 56,000 | 56,000 | ||||||
0.20%, 12/9/14 | 32,240 | 32,240 | ||||||
Bank of Nova Scotia, Houston, | 40,000 | 40,000 | ||||||
0.26%, 10/1/14, FRCD (2) | 40,000 | 40,000 | ||||||
0.23%, 10/8/14, FRCD (2) | 20,000 | 20,000 | ||||||
0.24%, 10/8/14, FRCD (2) | 45,000 | 45,000 | ||||||
0.22%, 11/13/14 | 33,380 | 33,380 | ||||||
0.25%, 2/17/15 | 74,515 | 74,515 | ||||||
Bank of Tokyo-Mitsubishi UFJ Ltd., | 185,000 | 185,000 | ||||||
0.20%, 11/12/14 | 24,000 | 24,000 | ||||||
0.24%, 11/17/14 | 64,840 | 64,840 | ||||||
0.25%, 1/13/15 | 28,000 | 28,000 | ||||||
0.25%, 1/14/15 | 20,000 | 20,000 | ||||||
0.25%, 1/29/15 | 17,000 | 17,000 | ||||||
BMO Harris Bank N.A., | 15,415 | 15,415 | ||||||
Branch Banking and Trust Co., | 80,000 | 80,000 | ||||||
0.16%, 12/29/14 | 36,000 | 36,000 | ||||||
Canadian Imperial Bank of Commerce, | 20,000 | 20,000 | ||||||
Citibank N.A., | 67,000 | 67,000 | ||||||
Citibank N.A., New York Branch, | 40,000 | 40,000 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 15 | MONEY MARKET FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MONEY MARKET FUND continued
PRINCIPAL (000s) | VALUE (000s) | |||||||
CERTIFICATES OF DEPOSIT – 39.3% – continued | ||||||||
Banking – 39.3% – continued | ||||||||
Commonwealth Bank of Australia, London, | $22,595 | $22,595 | ||||||
0.24%, 11/7/14, FRCD (2) | 50,000 | 50,000 | ||||||
0.22%, 12/22/14 | 40,000 | 40,000 | ||||||
0.22%, 1/12/15 | 25,000 | 25,000 | ||||||
0.36%, 9/15/15 | 32,000 | 32,000 | ||||||
Cooperatieve Centrale | 28,000 | 28,002 | ||||||
Credit Suisse, New York, | 77,400 | 77,400 | ||||||
DNB Nor Bank ASA, New York Branch, | 55,000 | 55,000 | ||||||
0.17%, 11/5/14 | 30,985 | 30,985 | ||||||
0.17%, 11/12/14 | 39,000 | 39,000 | ||||||
HSBC Bank PLC, London Branch, | 24,000 | 24,000 | ||||||
JPMorgan Chase Bank N.A., | 53,000 | 53,000 | ||||||
Mitsubishi UFJ Trust & Banking Corp., | 15,445 | 15,445 | ||||||
0.24%, 11/6/14 | 32,335 | 32,335 | ||||||
0.24%, 11/26/14 | 55,340 | 55,340 | ||||||
0.23%, 12/15/14 | 15,660 | 15,660 | ||||||
Mizuho Bank Ltd., New York Branch, | 15,000 | 15,000 | ||||||
0.21%, 10/3/14 | 13,000 | 13,000 | ||||||
0.21%, 12/22/14 | 45,000 | 45,000 | ||||||
National Australia Bank Ltd., London, | 40,000 | 40,000 | ||||||
Nordea Bank Finland PLC, New York, | 22,170 | 22,170 | ||||||
Norinchukin Bank, New York Branch, | 34,060 | 34,060 | ||||||
Oversea-Chinese Banking Corp. Ltd., | 35,000 | 35,000 | ||||||
Oversea-Chinese Banking Corp., | 26,920 | 26,910 | ||||||
Rabobank Nederland, New York Branch, | 30,000 | 30,000 | ||||||
0.21%, 12/3/14 | 60,000 | 60,000 | ||||||
0.21%, 12/5/14 | 60,000 | 60,000 | ||||||
Rabobank Nederland, New York, | 24,815 | 24,815 |
PRINCIPAL (000s) | VALUE (000s) | |||||||
CERTIFICATES OF DEPOSIT – 39.3% – continued | ||||||||
Banking – 39.3% – continued | ||||||||
Royal Bank of Canada, New York, | $42,000 | $42,000 | ||||||
0.23%, 10/15/14, FRCD (2) | 20,000 | 20,000 | ||||||
Skandinaviska Enskilda Banken AB, | 58,000 | 58,000 | ||||||
Skandinaviska Enskilda Banken AB, New York, | 58,560 | 58,560 | ||||||
Sumitomo Mitsui Banking Corp., | 46,000 | 46,000 | ||||||
Sumitomo Mitsui Trust Bank Ltd. | 31,000 | 31,000 | ||||||
0.23%, 11/28/14 | 52,085 | 52,085 | ||||||
Svenska Handelsbanken AB, | 29,255 | 29,256 | ||||||
Svenska Handelsbanken AB, New York, | 12,015 | 12,015 | ||||||
0.17%, 12/3/14 | 50,000 | 50,000 | ||||||
Toronto Dominion Bank, New York, | 58,000 | 58,000 | ||||||
0.25%, 11/24/14, FRCD (2) | 39,000 | 39,000 | ||||||
Wells Fargo Bank N.A., | 32,745 | 32,745 | ||||||
0.24%, 10/1/14, FRCD (2) | 37,575 | 37,575 | ||||||
0.22%, 10/15/14, FRCD (2) | 37,000 | 37,000 | ||||||
0.22%, 10/20/14, FRCD (2) | 31,000 | 31,003 | ||||||
0.21%, 11/3/14 | 40,000 | 40,000 | ||||||
0.26%, 12/3/14, FRCD (2) | 40,000 | 40,000 | ||||||
0.21%, 2/9/15 | 80,000 | 80,000 | ||||||
Westpac Banking Corp., New York, | 38,000 | 38,000 | ||||||
0.25%, 11/26/14, FRCD (2) | 15,000 | 15,000 | ||||||
2,947,346 | ||||||||
Total Certificates of Deposit | ||||||||
(Cost $2,947,346) | 2,947,346 |
See Notes to the Financial Statements.
MONEY MARKET FUNDS | 16 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
COMMERCIAL PAPER – 9.6% | ||||||||
Automotive – 0.8% | ||||||||
Toyota Motor Credit Corp., | $57,740 | $57,739 | ||||||
Banking – 4.5% | ||||||||
Australia and New Zealand Banking Group, | 60,000 | 60,000 | ||||||
DBS Bank Ltd., | 31,610 | 31,610 | ||||||
0.24%, 3/16/15 (1)(3) | 13,000 | 12,986 | ||||||
DNB Bank ASA, | 25,000 | 24,987 | ||||||
Oversea-Chinese Banking Corp., | 32,475 | 32,460 | ||||||
0.28%, 6/16/15 | 26,000 | 25,948 | ||||||
Sumitomo Mitsui Banking Corp., | 9,900 | 9,900 | ||||||
0.21%, 11/7/14 (1) | 46,000 | 45,990 | ||||||
0.26%, 2/11/15 (1) | 50,000 | 49,953 | ||||||
United Overseas Bank Ltd., | 19,395 | 19,394 | ||||||
Westpac Banking Corp., | 23,000 | 23,004 | ||||||
336,232 | ||||||||
Brokerage – 0.4% | ||||||||
JP Morgan Securities LLC, | 34,000 | 33,968 | ||||||
Diversified Manufacturing – 2.2% | ||||||||
General Electric Co., | 92,000 | 91,999 | ||||||
0.06%, 10/8/14 | 72,000 | 71,999 | ||||||
163,998 | ||||||||
Foreign Agencies – 1.7% | ||||||||
Electricite De France S.A., | 31,995 | 31,985 | ||||||
0.26%, 12/16/14 (1) | 35,245 | 35,226 | ||||||
NRW.BANK, | 65,000 | 65,000 | ||||||
132,211 | ||||||||
Total Commercial Paper | ||||||||
(Cost $724,148) | 724,148 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE NOTES/BONDS – 6.0% | ||||||||
Automotive – 1.1% | ||||||||
American Honda Finance Corp., | $30,800 | $30,800 | ||||||
Toyota Motor Credit Corp., | 56,370 | 56,370 | ||||||
87,170 | ||||||||
Banking – 0.9% | ||||||||
Commonwealth Bank of Australia, | 40,000 | 40,341 | ||||||
National Australia Bank Ltd., | 25,000 | 25,000 | ||||||
65,341 | ||||||||
Consumer Products – 0.6% | ||||||||
Kimberly-Clark Corp., | 44,925 | 45,309 | ||||||
Foreign Agencies – 1.9% | ||||||||
Export Development Canada, | 50,000 | 50,000 | ||||||
0.13%, 10/14/14, FRN (1)(2) | 40,000 | 40,000 | ||||||
KFW, | 50,000 | 49,999 | ||||||
139,999 | ||||||||
Foreign Local Government – 0.2% | ||||||||
Province of Quebec Canada, | 15,880 | 16,329 | ||||||
Retailers – 0.3% | ||||||||
Wal-Mart Stores, | 20,000 | 20,684 | ||||||
Supranational – 0.8% | ||||||||
International Bank for Reconstruction & Development, | 19,000 | 18,993 | ||||||
0.30%, 10/9/15 | 26,000 | 26,000 | ||||||
International Finance Corp., | 18,000 | 18,000 | ||||||
62,993 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 17 | MONEY MARKET FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MONEY MARKET FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE NOTES/BONDS – 6.0% – continued | ||||||||
Technology – 0.2% | ||||||||
International Business Machines Corp., | 7,000 | 7,001 | ||||||
0.55%, 2/6/15 | $9,595 | $9,605 | ||||||
16,606 | ||||||||
Total Corporate Notes/Bonds | ||||||||
(Cost $454,431) | 454,431 | |||||||
EURODOLLAR TIME DEPOSITS – 11.0% | ||||||||
Banking – 11.0% | ||||||||
Australia and New Zealand Banking, | 34,000 | 34,000 | ||||||
0.06%, 10/3/14 | 33,000 | 33,000 | ||||||
DBS Bank Ltd., Singapore Branch, | 71,000 | 71,000 | ||||||
0.18%, 10/14/14 | 68,310 | 68,310 | ||||||
HSBC Holdings PLC, London Branch, | 34,000 | 34,000 | ||||||
HSBC Holdings PLC, Paris Branch, | 322,000 | 322,000 | ||||||
Skandinaviska Enskilda Banken AB, | 208,000 | 208,000 | ||||||
United Overseas Bank Ltd., Singapore | 52,000 | 52,000 | ||||||
822,310 | ||||||||
Total Eurodollar Time Deposits | ||||||||
(Cost $822,310) | 822,310 | |||||||
MEDIUM TERM NOTES – 0.3% | ||||||||
Construction/Machinery – 0.1% | ||||||||
Caterpillar Financial Services Corp., | 10,000 | 10,017 | ||||||
Non Captive Diversified – 0.2% | ||||||||
General Electric Capital Corp., | 5,370 | 5,398 | ||||||
4.88%, 3/4/15 | 8,000 | 8,156 | ||||||
13,554 | ||||||||
Total Medium Term Notes | ||||||||
(Cost $23,571) | 23,571 | |||||||
MUNICIPAL INVESTMENTS – 2.7% | ||||||||
Idaho – 0.1% | ||||||||
Glacier 600 LLC, (U.S. Bank N.A. LOC), | 2,975 | 2,975 |
PRINCIPAL (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 2.7% – continued | ||||||||
Illinois – 0.1% | ||||||||
City of Chicago Illinois Municipal CP, Series 02-D, (Wells Fargo Bank N.A. LOC), | $7,500 | $7,495 | ||||||
Kansas – 0.3% | ||||||||
Kansas State Development Finance Authority Multifamily Housing Revenue VRDB, Series B, Boulevard Apartments, (U.S. Bank N.A. LOC), | 22,590 | 22,590 | ||||||
Maryland – 0.5% | ||||||||
Montgomery County Maryland Economic Development Revenue VRDB, Series 2004, Riderwood Village, Inc. Project, (Manufacturers & Traders Trust Co. LOC), | 35,275 | 35,275 | ||||||
Massachusetts – 0.5% | ||||||||
Massachusetts Department of Transportation Metropolitan Highway System Revenue VRDB, Contract Assistance, Series A7, | 38,370 | 38,370 | ||||||
Michigan – 0.3% | ||||||||
Michigan State Finance Authority School Loan Revolving Fund Adjustable TRB, (JPMorgan Chase Bank N.A. LOC), | 25,000 | 25,000 | ||||||
New York – 0.5% | ||||||||
RBC Municipal Products, Inc. Trust Taxable Floating Revenue Notes, Series E-51, (Royal Bank of Canada LOC), | 17,270 | 17,270 | ||||||
RBC Municipal Products, Inc. Trust Taxable Floating Revenue Notes, Series E-52, (Royal Bank of Canada LOC), | 20,960 | 20,960 | ||||||
38,230 | ||||||||
Texas – 0.1% | ||||||||
University of North Texas Municipal | 8,760 | 8,760 |
See Notes to the Financial Statements.
MONEY MARKET FUNDS | 18 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 2.7% – continued | ||||||||
Vermont – 0.3% | ||||||||
Vermont Economic Development Authority Municipal Interest Bearing CP, (JPMorgan Chase Bank N.A. LOC), | $23,750 | $23,750 | ||||||
Total Municipal Investments | ||||||||
(Cost $202,445) | 202,445 | |||||||
U.S. GOVERNMENT AGENCIES – 14.6% (4) | ||||||||
Federal Farm Credit Bank – 2.0% | ||||||||
FFCB Discount Notes, | 25,000 | 24,997 | ||||||
0.08%, 12/5/14 | 35,000 | 34,995 | ||||||
0.11%, 4/7/15 | 25,000 | 24,986 | ||||||
FFCB FRN, | 42,000 | 41,998 | ||||||
0.17%, 10/1/14 (2) | 6,000 | 6,000 | ||||||
0.11%, 10/14/14 (2) | 16,000 | 15,999 | ||||||
148,975 | ||||||||
Federal Home Loan Bank – 10.9% | ||||||||
FHLB Bonds, | 31,255 | 31,254 | ||||||
0.13%, 1/6/15 | 41,430 | 41,423 | ||||||
0.22%, 7/17/15 | 35,000 | 35,000 | ||||||
0.23%, 8/3/15 | 24,520 | 24,520 | ||||||
0.20%, 8/12/15 | 39,320 | 39,315 | ||||||
0.20%, 10/16/15 | 14,000 | 13,994 | ||||||
FHLB Discount Notes, | 25,600 | 25,600 | ||||||
0.07%, 10/2/14 | 28,000 | 28,000 | ||||||
0.09%, 10/8/14 | 28,000 | 27,999 | ||||||
0.07%, 10/17/14 | 46,000 | 45,998 | ||||||
0.01%, 10/22/14 | 86,000 | 86,000 | ||||||
0.07%, 10/24/14 | 50,000 | 49,998 | ||||||
0.06%, 10/31/14 | 63,485 | 63,482 | ||||||
0.09%, 1/26/15 | 25,000 | 24,993 | ||||||
0.10%, 1/28/15 | 30,000 | 29,990 | ||||||
0.17%, 9/9/15 | 15,000 | 14,976 | ||||||
FHLB FRN, | 40,000 | 40,000 | ||||||
0.11%, 10/7/14 (2) | 50,000 | 49,998 | ||||||
0.14%, 10/11/14 (2) | 43,000 | 42,995 | ||||||
0.10%, 10/20/14 (2) | 102,000 | 101,988 | ||||||
817,523 | ||||||||
Federal Home Loan Mortgage Corporation – 0.9% |
| |||||||
FHLMC Bond, | 10,000 | 10,004 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 14.6% (4) – continued | ||||||||
Federal Home Loan Mortgage Corporation – 0.9% – continued |
| |||||||
FHLMC Discount Notes, | $30,000 | $29,992 | ||||||
0.10%, 2/19/15 | 25,000 | 24,991 | ||||||
64,987 | ||||||||
Federal National Mortgage Association – 0.8% |
| |||||||
FNMA FRN, | 25,000 | 24,996 | ||||||
0.14%, 10/21/14 (2) | 38,000 | 38,012 | ||||||
63,008 | ||||||||
Total U.S. Government Agencies | ||||||||
(Cost $1,094,493) | 1,094,493 | |||||||
U.S. GOVERNMENT OBLIGATIONS – 4.0% | ||||||||
U.S. Treasury Bills – 2.7% | ||||||||
0.15%, 10/16/14 | 35,865 | 35,863 | ||||||
0.00%, 10/23/14 | 79,000 | 79,000 | ||||||
0.13%, 1/8/15 | 50,000 | 49,982 | ||||||
0.13%, 3/5/15 | 34,680 | 34,660 | ||||||
199,505 | ||||||||
U.S. Treasury Floating Rate Notes – 1.3% |
| |||||||
0.08%, 10/1/14 (2) | 76,583 | 76,586 | ||||||
0.09%, 10/1/14 (2) | 25,239 | 25,239 | ||||||
101,825 | ||||||||
Total U.S. Government Obligations | ||||||||
(Cost $301,330) | 301,330 | |||||||
Investments, at Amortized Cost | ||||||||
($6,921,847) | 6,921,847 | |||||||
REPURCHASE AGREEMENTS – 9.8% | ||||||||
Joint Repurchase Agreements – 0.9% (5) |
| |||||||
Bank of America Securities LLC, dated 9/30/14, repurchase price $22,303 | 22,303 | 22,303 | ||||||
Morgan Stanley & Co., Inc., dated 9/30/14, repurchase price $22,303 | 22,303 | 22,303 | ||||||
Societe Generale, New York Branch, dated 9/30/14, repurchase price $22,302 | 22,302 | 22,302 | ||||||
66,908 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 19 | MONEY MARKET FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MONEY MARKET FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
REPURCHASE AGREEMENTS – 9.8% – continued | ||||||||
Repurchase Agreements – 8.9% (6) | ||||||||
Citigroup Global Markets, Inc., dated 9/30/14, repurchase price $37,496 | $37,496 | $37,496 | ||||||
Federal Reserve Bank of New York, dated 9/30/14, repurchase price $393,000 | 393,000 | 393,000 | ||||||
JPMorgan Securities LLC, dated 9/30/14, repurchase price $100,039 | 100,000 | 100,000 | ||||||
Scotia Capital USA, Inc., dated 9/30/14, repurchase price $90,000 | 90,000 | 90,000 | ||||||
SG Americas Securities LLC, dated 9/30/14, repurchase price $45,000 | 45,000 | 45,000 | ||||||
665,496 | ||||||||
Total Repurchase Agreements | ||||||||
(Cost $732,404) | 732,404 | |||||||
Total Investments – 102.0% | ||||||||
(Cost $7,654,251) (7) | 7,654,251 | |||||||
Liabilities less Other Assets – (2.0)% | (150,910 | ) | ||||||
NET ASSETS – 100.0% | $7,503,341 |
(1) | 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. The value of these securities is determined in accordance with procedures established by the Trustees of Northern Funds. |
(2) | Maturity date represents the next interest reset date. The security’s legal final maturity date is longer than the reset date. Securities with longer maturity dates have a greater sensitivity to changes in liquidity and/or credit risk. |
(3) | Restricted security has been deemed illiquid. At September 30, 2014, the value of these restricted illiquid securities amounted to approximately $85,184,000 or 1.1% of net assets. Additional information on each restricted illiquid security is as follows: |
SECURITY | ACQUISITION AND ENFORCEABLE DATE | ACQUISITION (000s) | ||||||
DBS Bank Ltd., | 9/23/14 | $12,985 | ||||||
JP Morgan Securities LLC, | 9/17/14 | 33,965 | ||||||
RBC Municipal Products, Inc. Trust Taxable Floating Revenue Notes, | 9/11/14 | 17,270 |
SECURITY | ACQUISITION AND ENFORCEABLE DATE | ACQUISITION (000s) | ||||||
RBC Municipal Products, Inc. Trust Taxable Floating Revenue Notes, | 9/11/14 | 20,960 |
(4) | The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury. On September 7, 2008, the Federal Housing Finance Agency (“FHFA”) placed FNMA and FHLMC in conservatorship. The United States Treasury has put in place a set of financing agreements to ensure that these entities continue to meet their obligations to holders of bonds that they have issued or guaranteed. |
(5) | The nature and terms of the collateral received for the joint repurchase agreements are as follows: |
NAME | FAIR VALUE (000s) | COUPON RATES | MATURITY DATES | |||||||||
U.S. Treasury Bonds | $5,857 | 3.63% | 4/15/28 | |||||||||
U.S. Treasury Notes | $62,225 | 0.13% – 3.38% | 10/31/14 – 7/15/23 | |||||||||
Total | $68,082 |
(6) | The nature and terms of the collateral received for the repurchase agreements are as follows: |
NAME | FAIR VALUE (000s) | COUPON RATES | MATURITY DATES | |||||||||
Corporate Bonds | $252,315 | 0.00% – 9.82% | 11/21/14 – 12/15/66 | |||||||||
U.S. Treasury Bonds | $5,857 | 3.63% | 4/15/28 | |||||||||
U.S. Treasury Notes | $493,471 | 0.13% – 3.38% | 10/31/14 – 7/15/23 | |||||||||
Total | $751,643 |
(7) | The cost for federal income tax purposes was $7,654,251. |
Percentages shown are based on Net Assets.
At September 30, 2014, the maturity analysis for the Fund as a percentage of investments was:
MATURITY ANALYSIS | % | |||
Overnight | 26.4% | |||
2 – 15 Days | 20.7 | |||
16 – 30 Days | 8.6 | |||
31 – 60 Days | 14.9 | |||
61 – 97 Days | 12.0 | |||
98 – 180 Days | 13.3 | |||
181 – 270 Days | 1.7 | |||
271 – 366 Days | 1.9 | |||
367 – 397 Days | 0.5 | |||
Total | 100.0% |
See Notes to the Financial Statements.
MONEY MARKET FUNDS | 20 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments, which are carried at amortized cost, which approximates fair value, by the above fair value hierarchy as of September 30, 2014:
LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | |||||||||||||
Investments held by Money Market Fund | $ – | $7,654,251 | (1) | $ – | $7,654,251 |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014 there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 21 | MONEY MARKET FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MUNICIPAL MONEY MARKET FUND
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% | ||||||||
Alabama – 2.0% | ||||||||
Chatom Alabama IDB Gulf Opportunity Zone VRDB, Powersouth Energy Cooperative, (Natural Rural Utilities Cooperative Finance Corp. LOC), | $20,000 | $20,000 | ||||||
Dothan Alabama Downtown Redevelopment Authority Revenue VRDB, Northside Mall Project, (Wells Fargo Bank N.A. LOC), | 12,000 | 12,000 | ||||||
Eclipse Funding Trust Revenue Bonds, Series 2006-0109-Solar Eclipse, Mobile, Alabama, (U.S. Bank N.A. LOC), | 8,150 | 8,150 | ||||||
Mobile Industrial Development Board Adjustable PCR Bonds, 1st Series, Alabama Power Barry Plant, | 34,900 | 34,900 | ||||||
Mobile Industrial Development Board Pollution Control VRDB, Alabama Power Co.-Barry Plant, | 20,000 | 20,000 | ||||||
Taylor-Ryan Improvement District No. 2 VRDB, Special Assessment, Improvement, (Wells Fargo Bank N.A. LOC), | 9,700 | 9,700 | ||||||
Washington County Alabama IDA Revenue VRDB, Bay Gas Storage Co. Ltd. Project, (UBS A.G. LOC), | 9,165 | 9,165 | ||||||
113,915 | ||||||||
Alaska – 0.9% | ||||||||
Alaska Housing Finance Corp. Revenue VRDB, State Capital Project, Series C, | 48,255 | 48,255 | ||||||
Arizona – 0.7% | ||||||||
Arizona Board of Regents COPS, Floaters, Series 1918, (Wells Fargo & Co. Gtd.), | 25 | 25 | ||||||
Phoenix Arizona IDA Multifamily Housing Revenue Refunding VRDB, Southwest Village Apartments Project, (FNMA LOC), | 9,200 | 9,200 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
Arizona – 0.7% – continued | ||||||||
Pima County Arizona IDA Multifamily Housing Revenue Refunding VRDB, Eastside Place Apartments Project, (FNMA LOC), | $6,375 | $6,375 | ||||||
Salt River Arizona Project Agricultural Improvement & Power District Electric Revenue Bonds, Eagle 20060014, Class A, | 8,700 | 8,700 | ||||||
Tucson Arizona IDA VRDB, Series 2002-A, Housing Family Housing Resource Projects, (FNMA LOC), | 16,120 | 16,120 | ||||||
40,420 | ||||||||
California – 9.5% | ||||||||
California Health Facilities Financing Authority Revenue VRDB, Catholic Healthcare, Series H, (Wells Fargo Bank N.A. LOC), | 2,000 | 2,000 | ||||||
California Infrastructure & Economic Development Bank Refunding Revenue VRDB, Pacific Gas & Electric, Series C, (Sumitomo Mitsui Banking Corp. LOC), | 6,000 | 6,000 | ||||||
California Infrastructure & Economic Development Bank Revenue Refunding VRDB, Pacific Gas Electric, Series B, (Mizuho Bank Ltd. LOC), | 5,000 | 5,000 | ||||||
California Infrastructure & Economic Development Bank Revenue VRDB, Pinewood School Project, (Comerica Bank LOC), | 3,030 | 3,030 | ||||||
California State G.O. Unlimited, Floating, Series C-4, (U.S. Bank N.A. LOC), | 11,540 | 11,540 | ||||||
California State School Cash Reserve Program Authority Revenue Notes, Series D, | 7,355 | 7,459 |
See Notes to the Financial Statements.
MONEY MARKET FUNDS | 22 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED)
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
California – 9.5% – continued | ||||||||
California State School Cash Reserve Program Authority Revenue Notes, Series E, | $23,145 | $23,469 | ||||||
California State School Cash Reserve Program Authority TRANS, Series A, | 10,965 | 11,103 | ||||||
California Statewide Communities Development Authority Adjustable COPS, Covenant Retirement Communities, Inc., (JPMorgan Chase Bank N.A. LOC), | 12,800 | 12,800 | ||||||
California Statewide Communities Development Authority Corp. COPS VRDB, Covenant Retirement Communities, (JPMorgan Chase Bank N.A. LOC), | 10,800 | 10,800 | ||||||
California Statewide Communities Development Authority Gas Supply Revenue VRDB, | 47,600 | 47,600 | ||||||
California Statewide Communities Development Authority Multifamily Housing Revenue VRDB, Encanto Homes Apartments, (FHLB of San Francisco LOC), | 6,900 | 6,900 | ||||||
California Statewide Communities Development Authority Multifamily Housing Revenue VRDB, Pine View Apartments, Series A, (Citibank N.A. LOC), | 4,400 | 4,400 | ||||||
California Statewide Communities Development Authority Multifamily Revenue VRDB, Varenna Assisted Living, Series F, (FHLB of San Francisco LOC), | 3,600 | 3,600 | ||||||
California Statewide Communities Development Authority Revenue VRDB, Community Hospital of Monterey, (Wells Fargo Bank N.A. LOC), | 15,000 | 15,000 | ||||||
California Statewide Communities Development Authority Revenue VRDB, Series 2005, University of San Diego, (Wells Fargo Bank N.A. LOC), | 14,800 | 14,800 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
California – 9.5% – continued | ||||||||
City & County of San Francisco California Multifamily Housing Revenue Refunding VRDB, Post Street Towers, Series A, (FHLMC LOC), | $7,500 | $7,500 | ||||||
City of Carlsbad California Multifamily Housing Revenue Refunding VRDB, Santa Fe Ranch Apartments Project, (FHLMC LOC), | 9,500 | 9,500 | ||||||
City of Fresno California Multifamily Housing Revenue Refunding VRDB, Heron Pointe Apartments, Series A, (FNMA LOC), | 10,105 | 10,105 | ||||||
City of Livermore California COPS VRDB, Capital Projects, (U.S. Bank N.A. LOC), | 2,005 | 2,005 | ||||||
City of Los Angeles G.O. Unlimited TRANS, | 53,000 | 53,538 | ||||||
City of Salinas California Economic Development Revenue VRDB, Monterey County Public Building, Series A, (Bank of New York Mellon LOC), | 4,940 | 4,940 | ||||||
County of Los Angeles G.O. Unlimited TRANS, | 20,000 | 20,205 | ||||||
County of Riverside Teeter Obligation Revenue Notes, Series D, | 5,000 | 5,003 | ||||||
Daly City Housing Development Finance Agency Multifamily Revenue Refunding VRDB, Serramonte Del Ray, Series A, (FNMA LOC), | 13,300 | 13,300 | ||||||
Golden Empire Schools Financing Authority Lease Revenue Floating Revenue Bonds, Variable Notes, Kern High School District, | 12,120 | 12,120 | ||||||
Irvine Unified School District Special Tax Adjustable Bonds, Community Facilities District 09, (Bank of America N.A. LOC), | 5,418 | 5,418 | ||||||
Los Angeles Department of Water & Power Revenue VRDB, | 13,900 | 13,900 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 23 | MONEY MARKET FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MUNICIPAL MONEY MARKET FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
California – 9.5% – continued | ||||||||
Los Angeles, California Department of Water & Power Revenue VRDB, Power Systems, Series A-8, | $50,000 | $50,000 | ||||||
Metropolitan Water District of Southern California Revenue Refunding VRDB, Series D, | 4,000 | 4,000 | ||||||
Mission Viejo Community Development Financing Authority Revenue VRDB, Mall Improvement Project, Series A, (MUFG Union Bank N.A. LOC), | 10,200 | 10,200 | ||||||
Orange County California Apartment Development Adjustable Revenue Refunding Bonds, Larkspur Canyon Apartments, Series A, (FNMA LOC), | 200 | 200 | ||||||
Orange County Housing Authority Apartment Development Revenue Refunding VRDB, Oasis Martinique, Class I, (FNMA LOC), | 21,100 | 21,100 | ||||||
Riverside County California COPS VRDB, Aces-Riverside County Public Facilities, Series B, (State Street Bank & Trust Co. LOC), | 7,700 | 7,700 | ||||||
San Francisco City & County Airports Community International Airport Revenue Refunding VRDB, Second Series 37C, (MUFG Union Bank N.A. LOC), | 9,000 | 9,000 | ||||||
San Francisco City & County Finance Corp. Adjustable Revenue Refunding Bonds, Series 2008-1, Moscone Center, (Bank of America N.A. LOC), | 20,435 | 20,435 | ||||||
State of California G.O. Unlimited VRDB, Series B, Subseries B-2, (Bank of Tokyo-Mitsubishi UFJ Ltd. LOC), | 19,050 | 19,050 | ||||||
State of California G.O., Series A-3, (Bank of Montreal LOC), | 32,600 | 32,600 | ||||||
State of California Revenue Anticipation Notes, | 7,500 | 7,575 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
California – 9.5% – continued | ||||||||
West Hills Community College District COPS VRDB, (MUFG Union Bank N.A. LOC), | $7,500 | $7,500 | ||||||
Western Municipal Water District Facilities Authority Revenue Refunding Bonds, Series A, (MUFG Union Bank N.A. LOC), | 3,500 | 3,500 | ||||||
535,895 | ||||||||
Colorado – 2.1% | ||||||||
Arapahoe County Colorado Multifamily Revenue Refunding VRDB, Series 2001, Rent Housing Hunters Run, (FHLMC LOC), | 9,830 | 9,830 | ||||||
Castle Pines North Finance Corp. Colorado COPS VRDB, Series F, (Wells Fargo Bank N.A. LOC), | 2,460 | 2,460 | ||||||
City of Colorado Springs Utilities System Revenue VRDB, System Improvement, Series A, | 9,185 | 9,185 | ||||||
Colorado Educational & Cultural Facilities Authority Adjustable Revenue Bonds, Presentation School, (MUFG Union Bank N.A. LOC), | 6,940 | 6,940 | ||||||
Colorado Educational & Cultural Facilities Authority Revenue Refunding VRDB, Nampa Christian Schools, (U.S. Bank N.A. LOC), | 4,305 | 4,305 | ||||||
Colorado Health Facilities Authority Adjustable Revenue Bonds, Frasier Meadows Manor Project, (JPMorgan Chase Bank N.A. LOC), | 9,390 | 9,390 | ||||||
Colorado Health Facilities Authority Revenue VRDB, Fraiser Meadows Community Project, (JPMorgan Chase Bank N.A. LOC), | 6,000 | 6,000 | ||||||
Colorado Housing & Finance Authority Revenue VRDB, SFM, Series 1-A3, | 9,155 | 9,155 |
See Notes to the Financial Statements.
MONEY MARKET FUNDS | 24 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
Colorado – 2.1% – continued | ||||||||
Colorado State Educational & Cultural Facilities Authority Adjustable Revenue Refunding Bonds, Capital Christian Schools, (FHLB of San Francisco LOC), | $9,450 | $9,450 | ||||||
Colorado State General Fund TRANS, Series A, | 50,000 | 50,326 | ||||||
Pueblo County Development VRDB, El Pueblo Boys & Girls Project, (U.S. Bank N.A. LOC), | 1,400 | 1,400 | ||||||
118,441 | ||||||||
Connecticut – 0.1% | ||||||||
Connecticut State Health & Educational Facilities Authority Revenue VRDB, Lawrence & Memorial Hospital, Series H, (TD Bank N.A. LOC), | 6,000 | 6,000 | ||||||
District of Columbia – 0.4% | ||||||||
District of Columbia Revenue VRDB, D.C. Preparatory Academy, (Manufacturers & Traders Trust Co. LOC), | 4,520 | 4,520 | ||||||
District of Columbia Revenue VRDB, Henry J. Kaiser Foundation, | 10,100 | 10,100 | ||||||
District of Columbia Water & Sewer Authority Public Utility VRDB, Subseries B-2, Subordinate Lien, | 10,000 | 10,000 | ||||||
24,620 | ||||||||
Florida – 5.4% | ||||||||
Capital Trust Agency Florida Housing Revenue VRDB, Series 2008-A, Atlantic Housing Foundation, (FNMA LOC), | 12,200 | 12,200 | ||||||
Collier County Florida Health Facilities Authority Revenue VRDB, The Moorings, Inc. Project, (JPMorgan Chase Bank N.A. LOC), | 18,500 | 18,500 | ||||||
0.05%, 10/8/14 | 16,610 | 16,610 | ||||||
0.05%, 10/8/14 | 8,510 | 8,510 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
Florida – 5.4% – continued | ||||||||
Eclipse Funding Trust, Florida, Revenue Bonds, Series 2006-0043, Solar Eclipse Certificates, (U.S. Bank N.A. LOC), | $5,000 | $5,000 | ||||||
Escambia County Florida Health Facilities Authority Revenue Refunding VRDB, Azalea Trace, Inc., Series A, (TD Bank N.A. LOC), | 1,250 | 1,250 | ||||||
Escambia County Florida Health Facilities Authority Revenue Refunding VRDB, Azalea Trace, Inc., Series B, (TD Bank N.A. LOC), | 13,500 | 13,500 | ||||||
Florida Housing Finance Agency Revenue VRDB, (FNMA LOC), | 8,500 | 8,500 | ||||||
Highlands County Health Facilities Authority Revenue Refunding VRDB, Hospital Adventist, Series 1-5, | 30,125 | 30,125 | ||||||
Highlands County Health Facilities Authority Revenue VRDB, Hospital Adventist Health System, Series A, | 32,770 | 32,770 | ||||||
JEA Variable Rate Demand Obligation, | 18,600 | 18,600 | ||||||
Miami-Dade County Florida Educational Facilities Authority Revenue Bonds, (Wells Fargo Bank N.A. LOC), | 15,035 | 15,035 | ||||||
Orange County Florida Health Facilities Authority Revenue VRDB, Hospital Orlando Regional, (Branch Banking & Trust Co. LOC), | 33,500 | 33,500 | ||||||
Orange County Florida Housing Financial Authority Multifamily Housing Revenue Refunding Bonds, Post Lake Apartments Project, (FNMA LOC), | 28,000 | 28,000 | ||||||
Orange County Florida Multifamily Housing Finance Authority Revenue Refunding VRDB, Heather Glen, Series E, (FNMA LOC), | 10,000 | 10,000 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 25 | MONEY MARKET FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MUNICIPAL MONEY MARKET FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
Florida – 5.4% – continued |
| |||||||
Orlando-Orange County Expressway Authority Revenue Refunding VRDB, Subseries B-1, (Bank of Montreal LOC), | $26,500 | $26,500 | ||||||
State of Florida Board of Public Education G.O. Eagle-720050054-Class A, | 7,000 | 7,000 | ||||||
Sunshine State Governmental Financing Commission Revenue VRDB, Miami Dade County Program, Series B, (Bank of New York Mellon LOC), | 15,970 | 15,970 | ||||||
301,570 | ||||||||
Georgia – 2.4% |
| |||||||
DeKalb County Georgia Multifamily Housing Authority Revenue VRDB, Highland Place Apartments Project, (FHLMC LOC), | 4,200 | 4,200 | ||||||
Eclipse Funding Trust Solar Eclipse Atlanta Revenue Bonds, Series 2006-0024, (U.S. Bank N.A. LOC), | 23,780 | 23,780 | ||||||
Gainesville & Hall County Development Authority Revenue VRDB, Senior Living Facility, Lanier Village, Series B, (TD Bank N.A. LOC), | 11,600 | 11,600 | ||||||
Hinesville Housing Authority Multifamily Housing Adjustable Revenue Bonds, Harbor Square Apartments Project, (U.S. Treasury Escrowed), | 16,000 | 16,000 | ||||||
Main Street National Gas, Inc. Georgia Gas Project Revenue VRDB, | 54,700 | 54,700 | ||||||
Marietta Georgia Housing Authority Multifamily Revenue Refunding VRDB, Housing Wood Glen, (FHLMC LOC), | 6,000 | 6,000 | ||||||
Monroe County Development Authority PCR VRDB, Oglethorpe Power Corp., (Bank of Montreal LOC), | 10,600 | 10,600 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
Georgia – 2.4% – continued |
| |||||||
Roswell Multifamily Housing Authority Revenue Refunding VRDB, Azalea Park Apartments, (FNMA LOC), | $5,400 | $5,400 | ||||||
132,280 | ||||||||
Idaho – 0.5% |
| |||||||
Idaho Housing & Finance Association Non-profit Facilities Revenue VRDB, Series 2008, College of Idaho Project, (U.S. Bank N.A. LOC), | 8,500 | 8,500 | ||||||
State of Idaho G.O. Unlimited TANS, | 20,000 | 20,281 | ||||||
28,781 | ||||||||
Illinois – 5.3% |
| |||||||
BB&T Municipal Trust G.O. Revenue VRDB, (Branch Banking & Trust Co. LOC), | 16,400 | 16,400 | ||||||
City of Chicago G.O. Unlimited VRDB, Series 21-B-5, Neighborhoods Alive, (Bank of New York Mellon LOC), | 12,020 | 12,020 | ||||||
City of Chicago Illinois G.O. Refunding VRDB, Project Series D-1, (Bank of Montreal LOC), | 16,500 | 16,500 | ||||||
City of Chicago Illinois Municipal CP, Series 02-D, (JPMorgan Chase Bank N.A. LOC), | 24,965 | 24,965 | ||||||
City of Chicago Illinois, G.O. VRDB, Neighborhoods Alive 21, Series B-4, (Bank of New York Mellon LOC), | 21,710 | 21,710 | ||||||
Illinois Development Finance Authority IDR VRDB, Institution Gas Technology Project, | 800 | 800 | ||||||
Illinois Development Finance Authority Revenue VRDB, Evanston Northwestern, Series B, | 17,325 | 17,325 | ||||||
Illinois Development Finance Authority Revenue VRDB, Mount Carmel High School Project, (JPMorgan Chase Bank N.A. LOC), | 13,800 | 13,800 |
See Notes to the Financial Statements.
MONEY MARKET FUNDS | 26 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
Illinois – 5.3% – continued |
| |||||||
Illinois Development Finance Authority Revenue VRDB, North Shore Senior Center Project, (JPMorgan Chase Bank N.A. LOC), | $7,000 | $7,000 | ||||||
Illinois Development Finance Authority Revenue VRDB, Wheaton Academy Project, (BMO Harris Bank N.A. LOC), | 9,000 | 9,000 | ||||||
Illinois Development Financial Authority Revenue VRDB, Series 2003, Jewish Council Youth Services, (BMO Harris Bank N.A. LOC), | 2,245 | 2,245 | ||||||
Illinois Educational Facilities Authority Revenue VRDB, Aurora University, (BMO Harris Bank N.A. LOC), | 13,200 | 13,200 | ||||||
Illinois Educational Facilities Authority Revenue VRDB, Series B, University of Chicago, | 10,000 | 10,000 | ||||||
Illinois Educational Facilities Authority Revenue VRDB, The Adler Planetarium, (PNC Bank N.A. LOC), | 6,000 | 6,000 | ||||||
Illinois Finance Authority Adjustable Revenue Bonds, Joan W & Irving B Dance Project, (PNC Bank N.A. LOC), | 6,000 | 6,000 | ||||||
Illinois Finance Authority Revenue Bonds, Northwestern University, Subseries B, | 9,400 | 9,400 | ||||||
Illinois Finance Authority Revenue Refunding VRDB, Presbyterian Home, (JPMorgan Chase Bank N.A. LOC), | 9,120 | 9,120 | ||||||
Illinois Finance Authority Revenue VRDB, All Saints Catholic, Series A, (BMO Harris Bank N.A. LOC), 0.05%, 10/8/14 | 7,600 | 7,600 | ||||||
Illinois Finance Authority Revenue VRDB, Community Action Partnership, (Citibank N.A. LOC), | 4,880 | 4,880 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
Illinois – 5.3% – continued |
| |||||||
Illinois Finance Authority Revenue VRDB, Nazareth Academy Project, (PNC Bank N.A. LOC), | $9,500 | $9,500 | ||||||
Illinois Multifamily Housing Development Authority Revenue VRDB, Alden Gardens Bloomingdale, (BMO Harris Bank N.A. LOC), | 6,560 | 6,560 | ||||||
Illinois State Development Finance Authority Adjustable Revenue Bonds, Series A, Presbyterian Home, (JPMorgan Chase Bank N.A. LOC), | 10,800 | 10,800 | ||||||
Illinois State Finance Authority Revenue VRDB, Subseries C3B, Advocate Health, | 3,000 | 3,000 | ||||||
Illinois State Toll Highway Authority Toll Highway Revenue VRDB, | 6,800 | 6,800 | ||||||
Lisle Illinois Multifamily Housing Revenue Bonds, Ashley of Lisle Project, (FHLMC LOC), | 26,525 | 26,525 | ||||||
Quad Cities Regional EDA Illinois Revenue Bonds, Augustana College, (BMO Harris Bank N.A. LOC), | 14,100 | 14,100 | ||||||
University of Illinois Revenue Refunding VRDB, UIC South Campus Development, (JPMorgan Chase Bank N.A. LOC), | 8,200 | 8,200 | ||||||
University of Illinois Revenue VRDB, Series 2008, Auxiliary Facilities Systems, | 7,370 | 7,370 | ||||||
300,820 | ||||||||
Indiana – 1.7% | ||||||||
County of Posey Economic Development Adjustable Revenue Refunding Bonds, Series A, Midwest Fertilizer Corp., (U.S. Treasury Escrowed), | 37,000 | 37,000 | ||||||
County of Tippecanoe Indiana Revenue VRDB, Faith Property, Inc. Project, (JPMorgan Chase Bank N.A. LOC), 0.05%, 10/8/14 | 4,860 | 4,860 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 27 | MONEY MARKET FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MUNICIPAL MONEY MARKET FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
Indiana – 1.7% – continued | ||||||||
Eclipse Funding Trust Revenue Bonds, (U.S. Bank N.A. LOC), | $9,400 | $9,400 | ||||||
Indiana Development Finance Authority Revenue Bonds, Archer-Daniels-Midland Co., | 8,000 | 8,000 | ||||||
Indiana Finance Authority Environmental Revenue Refunding VRDB, Series A3, Duke Energy Industry Project, (Mizuho Bank Ltd. LOC), | 15,425 | 15,425 | ||||||
Lawrenceburg PCR Refunding VRDB, Series I, Michigan Power Co. Project, (Bank of Nova Scotia LOC), | 18,750 | 18,750 | ||||||
93,435 | ||||||||
Iowa – 0.8% | ||||||||
Iowa Finance Authority College Facilities Revenue VRDB, Drake University Project, (Wells Fargo Bank N.A. LOC), | 940 | 940 | ||||||
Iowa Finance Authority Economic Development Revenue VRDB, Series 2002, Iowa West Foundation Project, (U.S. Bank N.A. LOC), | 2,645 | 2,645 | ||||||
Iowa Finance Authority Health Facilities Revenue VRDB, Great River Medical Center Project, (JPMorgan Chase Bank N.A. LOC), | 6,400 | 6,400 | ||||||
Iowa Higher Education Loan Authority College Facilities Revenue VRDB, Loras College Project, | 12,050 | 12,050 | ||||||
Iowa Higher Education Loan Authority Revenue Refunding VRDB, Private College Facilities, Loras, (Bank of America N.A. LOC), | 9,865 | 9,865 | ||||||
Iowa Higher Education Loan Authority Revenue VRDB, Private College, (Bank of America N.A. LOC), | 2,500 | 2,500 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
Iowa – 0.8% – continued | ||||||||
Iowa Higher Education Loan Authority Revenue VRDB, Private College Des Moines, (BMO Harris Bank N.A. LOC), | $4,900 | $4,900 | ||||||
Urbandale Iowa IDR VRDB, Aurora Bus Park, (FHLB of Des Moines LOC), | 8,100 | 8,100 | ||||||
47,400 | ||||||||
Kentucky – 0.7% | ||||||||
City of Fort Mitchell Kentucky League of Cities Funding Trust Lease Program Revenue VRDB, Series A, (U.S. Bank N.A. LOC), | 8,900 | 8,900 | ||||||
City of Hazard Healthcare Revenue BANS, Appalachian Regional Healthcare, | 15,000 | 15,013 | ||||||
City of Pikeville Kentucky Hospital Revenue Refunding & Improvement BANS, Pikeville Medical Center, | 10,000 | 10,029 | ||||||
Morehead Kentucky League of Cities Revenue VRDB, Series A, Funding Trust Lease Program, (U.S. Bank N.A. LOC), | 6,672 | 6,672 | ||||||
40,614 | ||||||||
Louisiana – 0.9% | ||||||||
Louisiana Public Facilities Authority Revenue VRDB, Coca-Cola Bottling Co. Project, (U.S. Bank N.A. LOC), | 24,000 | 24,000 | ||||||
Louisiana State Public Facilities Authority VRDB, Dynamic Fuels LLC Project, (Bank of America N.A. LOC), | 26,250 | 26,250 | ||||||
50,250 |
See Notes to the Financial Statements.
MONEY MARKET FUNDS | 28 | NORTHERN FUNDS SEMIANNUAL REPORT |
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SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
Maine – 0.3% | ||||||||
Maine Health & Higher Educational Facilities Authority Revenue VRDB, Bowdoin College, (JPMorgan Chase Bank N.A. LOC), | $14,600 | $14,600 | ||||||
Maryland – 2.6% | ||||||||
Anne Arundel County Maryland Revenue VRDB, Key School Facility, Series A, (Manufacturers & Traders Trust Co. LOC), | 8,125 | 8,125 | ||||||
Baltimore County Maryland Revenue VRDB, Maryvale Prep School Facility, Series A, (Manufacturers & Traders Trust Co. LOC), | 3,605 | 3,605 | ||||||
Baltimore County Maryland Revenue VRDB, Notre Dame Preparatory School, (Manufacturers & Traders Trust Co. LOC), | 3,675 | 3,675 | ||||||
Eclipse Funding Trust Revenue Bonds, 2006-0154, Solar Eclipse, Maryland, (U.S. Bank N.A. LOC), | 27,735 | 27,735 | ||||||
Maryland Health & Higher Educational Facilities Authority Revenue Bonds, Pooled Loan Program, Series B, (JPMorgan Chase Bank N.A. LOC), | 20,100 | 20,100 | ||||||
Maryland Health & Higher Educational Facilities Authority Revenue VRDB, Adventist Healthcare, Series A, (MUFG Union Bank N.A. LOC), | 33,500 | 33,500 | ||||||
Maryland Housing and Community Development Administration Revenue VRDB, Residential, Series F, (PNC Bank N.A. LOC), | 11,850 | 11,850 | ||||||
Maryland State Community Development Administration Department Housing & Community Development Revenue VRDB, Series A, Multifamily Housing Development, (FHLMC LOC), | 16,950 | 16,950 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
Maryland – 2.6% – continued | ||||||||
Maryland State Economic Development Corp. Revenue VRDB, Opportunity Builders Facility, (Manufacturers & Traders Trust Co. LOC), | $5,325 | $5,325 | ||||||
Washington Suburban Sanitary Commission G.O. Unlimited VRDB, BANS, Series B-2, | 8,800 | 8,800 | ||||||
Washington Suburban Sanitary District Commission Variable G.O. Unlimited BANS, Series A, | 7,900 | 7,900 | ||||||
Washington Suburban Sanitary District Commission Variable G.O. Unlimited BANS, Series B, | 1,000 | 1,000 | ||||||
148,565 | ||||||||
Massachusetts – 2.6% | ||||||||
BB&T Municipal Trust Revenue Bonds, (Branch Banking & Trust Co. LOC), | 16,230 | 16,230 | ||||||
Commonwealth of Massachusetts G.O. Limited Revenue Anticipatory Notes, Series A, | 50,000 | 50,394 | ||||||
Commonwealth of Massachusetts G.O. Limited Revenue Anticipatory Notes, Series B, | 25,000 | 25,228 | ||||||
Massachusetts Development Finance Agency Revenue VRDB, Series A, Masonic Nursing Home, (Manufacturers & Traders Trust Co. LOC), | 9,160 | 9,160 | ||||||
Massachusetts State Development Finance Agency Revenue VRDB, Credit-Wilber School Apartments, Series A, (FHLB of Atlanta LOC), | 5,090 | 5,090 | ||||||
Massachusetts State Port Authority Revenue IAM Commercial Paper Notes, Series 2012 A (TD Bank N.A. LOC), | 10,000 | 10,000 | ||||||
0.10%, 1/15/15 | 6,600 | 6,600 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 29 | MONEY MARKET FUNDS |
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MUNICIPAL MONEY MARKET FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
Massachusetts – 2.6% – continued | ||||||||
Massachusetts State Water Resources Authority General Revenue VRDB, Series F, | $20,000 | $20,000 | ||||||
Massachusetts Water Resources Authority Municipal Interest Bearing CP, (State Street Bank & Trust Co. LOC), | 1,900 | 1,900 | ||||||
144,602 | ||||||||
Michigan – 1.4% | ||||||||
Michigan Finance Higher Education Facilities Authority Limited Obligation Revenue VRDB, University, (JPMorgan Chase Bank N.A. LOC), | 8,490 | 8,490 | ||||||
Michigan State Strategic Fund Limited Obligation Revenue Refunding VRDB, Series 2008, Consumers Energy Co., (JPMorgan Chase Bank N.A. LOC), | 10,200 | 10,200 | ||||||
Michigan State Strategic Fund Limited Obligation VRDB, CS Facilities LLC Project, (MUFG Union Bank N.A. LOC), | 10,000 | 10,000 | ||||||
Michigan State Strategic Fund Ltd. Obligation Revenue Bonds, Lansing St. Vincent Home Project, (Comerica Bank LOC), | 4,710 | 4,710 | ||||||
Michigan State University Revenue VRDB, | 1,000 | 1,000 | ||||||
Michigan State University Revenue VRDB, General Series A, | 37,000 | 37,000 | ||||||
Michigan Strategic Fund Limited Obligation Revenue VRDB, Tubelite, Inc. Project, (Comerica Bank LOC), | 10,000 | 10,000 | ||||||
81,400 | ||||||||
Minnesota – 2.3% | ||||||||
City of Edina Minnesota Multifamily Housing Revenue Refunding VRDB, Vernon Terrace Apartments Project, (FHLMC LOC), | 5,705 | 5,705 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
Minnesota – 2.3% – continued | ||||||||
City of Edina Multifamily Housing Revenue Refunding VRDB, Edina Park Plaza, (FHLMC LOC), | $10,000 | $10,000 | ||||||
City of Minnetonka Multifamily Housing Revenue Refunding VRDB, Minnetonka Hills Apartments, (FNMA LOC), | 3,865 | 3,865 | ||||||
Clipper Caraval Tax-Exempt Certificate Trust, Clipper Tax-Exempt Revenue Bonds, Series 2009-59, Minnesota, | 25,900 | 25,900 | ||||||
Fridley Minnesota Senior Housing Refunding VRDB, Banfill Crossing, Series A, (FNMA LOC), | 7,780 | 7,780 | ||||||
Minneapolis Minnesota Student Residence Revenue VRDB, Riverton Community Housing Project, (FHLB of Des Moines LOC), | 6,145 | 6,145 | ||||||
Minnesota Agricultural & Economic Development Board Revenue VRDB, Evangelical Lutheran Project, (U.S. Bank N.A. LOC), | 13,050 | 13,050 | ||||||
Minnesota Higher Education Facilities Authority Revenue VRDB, Concordia University St. Paul, Series 6Q, (U.S. Bank N.A. LOC), | 4,200 | 4,200 | ||||||
Minnesota Rural Water Finance Authority, Inc. Public Projects Construction Revenue Notes, | 4,500 | 4,508 | ||||||
RBC Municipal Products, Inc. Trust Revenue VRDB, Series E-19, (Royal Bank of Canada LOC), | 30,000 | 30,000 | ||||||
St. Paul Minnesota Housing & Redevelopment Authority Revenue Bonds, Science Museum of Minnesota, Series A, (U.S. Bank N.A. LOC), | 15,700 | 15,700 | ||||||
126,853 |
See Notes to the Financial Statements.
MONEY MARKET FUNDS | 30 | NORTHERN FUNDS SEMIANNUAL REPORT |
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SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
Mississippi – 1.4% | ||||||||
Mississippi Business Finance Corp. Commission Gulf Opportunity Zone Revenue VRDB, Multi-Modal, Peco Foods, Inc. Project, (BMO Harris Bank N.A. LOC), | $6,650 | $6,650 | ||||||
Mississippi Business Finance Corp. Mississippi Business Finance Commission Gulf Opportunity Zone Revenue VRDB, Chevron USA, Series B, (Chevron Corp. Gtd.), | 13,000 | 13,000 | ||||||
Mississippi Business Finance Corp., Mississippi Business Finance Commission Gulf Opportunity Zone Revenue VRDB, Chevron USA, Inc. Project, Series A, (Chevron Corp. Gtd.), | 20,500 | 20,500 | ||||||
Mississippi Business Finance Corp., Mississippi Business Finance Commission Gulf Opportunity Zone Revenue VRDB, Chevron USA, Series F, (Chevron Corp. Gtd.), | 15,955 | 15,955 | ||||||
Mississippi State Business Finance Corp. Commission Gulf Opportunity Zone Adjustable Revenue Bonds, Series G, Chevron USA, Inc. Project, (Chevron Corp. Gtd.), | 8,350 | 8,350 | ||||||
Mississippi State Business Finance Corp. Commission Gulf Opportunity Zone Revenue VRDB, Series A, Chevron USA, Inc., (Chevron Corp. Gtd.), | 15,500 | 15,500 | ||||||
79,955 | ||||||||
Missouri – 2.8% | ||||||||
Kansas City Missouri IDA Multifamily Housing Revenue Refunding VRDB, Woodlands Partners Project, (FNMA LOC), | 4,045 | 4,045 | ||||||
Missouri Development Finance Board Revenue VRDB, Missouri Association Municipal Utilities Lease, (U.S. Bank N.A. LOC), | 8,375 | 8,375 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
Missouri – 2.8% – continued | ||||||||
Missouri State Health & Educational Facilities Authority Revenue VRDB, Pooled Hospital Freeman Health Systems, Series C, (U.S. Bank N.A. LOC), | $5,525 | $5,525 | ||||||
Missouri State Health & Educational Facilities Authority Revenue VRDB, Saint Louis Priory School Project, (U.S. Bank N.A. LOC), | 900 | 900 | ||||||
Missouri State Health & Educational Facilities Authority Revenue VRDB, Drury University, (PNC Bank N.A. LOC), | 11,935 | 11,935 | ||||||
Missouri State Health & Educational Facilities Authority Variable Rate Demand Obligation, | 15,000 | 15,000 | ||||||
Platte County Missouri IDA Multifamily Revenue Refunding Bonds, Wexford Place Project, (FHLMC LOC), | 6,530 | 6,530 | ||||||
RBC Municipal Products, Inc. Trust Adjustable Revenue Bonds, Floater, Series E-47, (Royal Bank of Canada LOC), | 49,995 | 49,995 | ||||||
RBC Municipal Products, Inc. Trust Revenue Bonds, Floater Certificates, Series E-40, Related to Missouri, (Royal Bank of Canada LOC), | 18,000 | 18,000 | ||||||
St. Charles County Missouri IDA Revenue Refunding VRDB, Casalon Apartments Project, (FNMA Escrowed), | 6,170 | 6,170 | ||||||
St. Charles County Missouri IDA Revenue Refunding VRDB, Country Club Apartments Project, (FNMA LOC), | 21,000 | 21,000 |
See Notes to the Financial Statements.
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SCHEDULE OF INVESTMENTS
MUNICIPAL MONEY MARKET FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
Missouri – 2.8% – continued | ||||||||
St. Charles County Missouri IDA Revenue Refunding VRDB, Remington Apartments Project, (FNMA Escrowed), | $12,700 | $12,700 | ||||||
160,175 | ||||||||
Nebraska – 2.0% | ||||||||
Central Plains Energy Project Nebraska Gas Project VRDB, Project No. 2, | 24,100 | 24,100 | ||||||
Central Plains Gas Energy Project Revenue Bonds, Series 91TP, (Branch Banking & Trust Co. LOC), | 8,325 | 8,325 | ||||||
Douglas County Hospital Authority No. 2 Revenue Refunding VRDB, Health Facilities Children’s, Series A, (U.S. Bank N.A. LOC), | 13,420 | 13,420 | ||||||
Lancaster County Hospital Authority No. 1 Revenue Refunding VRDB, Series B-2, Bryanlgh Medical Center, (U.S. Bank N.A. LOC), | 31,880 | 31,880 | ||||||
Omaha Nebraska Public Power District Separate Electric Revenue Bonds, Omaha Power, Eagle-720053008-Class A, (Columbia Insurance Co. Insured), | 27,760 | 27,760 | ||||||
Saline County Hospital Authority No. 1 Revenue Refunding VRDB, Series C, Bryanlgh Medical Center, (U.S. Bank N.A. LOC), | 7,945 | 7,945 | ||||||
113,430 | ||||||||
Nevada – 0.2% | ||||||||
Carson City Hospital Revenue VRDB, | 3,300 | 3,300 | ||||||
Carson City Nevada Hospital Revenue VRDB, Series 2003-B, Carson Tahoe Regional Medical Center, (U.S. Bank N.A. LOC), | 8,000 | 8,000 | ||||||
11,300 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
New Hampshire – 0.9% | ||||||||
New Hampshire Business Finance Authority Revenue VRDB, Littleton Regional Hospital, (TD Bank N.A. LOC), | $6,700 | $6,700 | ||||||
New Hampshire Health & Education Facilities Authority Revenue VRDB, Easter Seals New Hampshire, Series A, (FHLB of Boston LOC), | 9,875 | 9,875 | ||||||
New Hampshire Health & Education Facilities Authority Revenue VRDB, Phillips Exeter Academy, | 25,000 | 25,000 | ||||||
New Hampshire Higher Educational and Health Facilities Authority Revenue Bonds, Hunt Community Issue, (TD Bank N.A. LOC), | 6,685 | 6,685 | ||||||
New Hampshire State Health & Education Facilities Authority Revenue VRDB, St. Anselm College, (FHLB of Boston LOC), | 575 | 575 | ||||||
48,835 | ||||||||
New Jersey – 3.4% | ||||||||
BB&T Municipal Trust Adjustable Revenue Bonds, Floaters, Series 2019, (Branch Banking & Trust Co. LOC), | 21,640 | 21,640 | ||||||
BB&T Municipal Trust Revenue Bonds, | 325 | 325 | ||||||
County of Hudson G.O. Unlimited BANS, 2.00%, 12/5/14 | 15,000 | 15,045 | ||||||
Hudson County Improvement Authority Gtd. Pooled Revenue Notes, Series T-1, (Hudson County, New Jersey Insured), | 7,000 | 7,031 | ||||||
Hudson County Improvement Authority Guaranteed Pooled Revenue Notes, | 5,000 | 5,006 |
See Notes to the Financial Statements.
MONEY MARKET FUNDS | 32 | NORTHERN FUNDS SEMIANNUAL REPORT |
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SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
New Jersey – 3.4% – continued | ||||||||
JPMorgan Chase Putters/Drivers Trust Various States Adjustable Revenue Bonds, Series 4459, (JPMorgan Chase Bank N.A. LOC), | $100,000 | $100,000 | ||||||
JPMorgan Chase Putters/Drivers Trust Various States Adjustable Revenue Bonds, Series 4464 , (JPMorgan Chase Bank N.A. LOC), | 35,000 | 35,000 | ||||||
Nuveen New Jersey Dividend Advantage Municipal Fund VRDP, | 10,000 | 10,000 | ||||||
194,047 | ||||||||
New Mexico – 0.3% | ||||||||
New Mexico State Hospital Equipment Loan Council Revenue VRDB, Presbyterian Healthcare, Series B, | 15,900 | 15,900 | ||||||
New York – 11.9% | ||||||||
BB&T Municipal Trust Revenue VRDB, (Branch Banking & Trust Co. LOC), | 12,295 | 12,295 | ||||||
City of New York G.O. Unlimited VRDB, Subseries D-3, | 20,640 | 20,640 | ||||||
City of New York G.O. Unlimited VRDB, Subseries H-4, (Bank of New York Mellon LOC), | 6,500 | 6,500 | ||||||
Metropolitan Transportation Authority New York Dedicated Tax Fund Refunding VRDB, Series A-1, (Royal Bank of Canada LOC), | 10,000 | 10,000 | ||||||
Metropolitan Transportation Authority New York Revenue VRDB, Subseries E-2, (JPMorgan Chase Bank N.A. LOC), | 10,000 | 10,000 | ||||||
Monroe County New York Industrial Development Agency Revenue VRDB, Margaret Woodbury Strong, (Manufacturers & Traders Trust Co. LOC), | 27,750 | 27,750 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
New York – 11.9% – continued | ||||||||
Monroe County New York Industrial Development Corp. Revenue VRDB, St. Ann’s Nursing Home, (HSBC Bank USA N.A. LOC), | $4,645 | $4,645 | ||||||
New York City Municipal Finance Authority Water & Sewer System Adjustable Revenue Bonds, Series CC-1, Second Generation Resolution, | 330 | 330 | ||||||
New York City Municipal Finance Authority Water & Sewer System VRDB, Second Generation Resolution, | 18,500 | 18,500 | ||||||
New York City Municipal Water Finance Authority Water & Sewer System Adjustable Revenue Bonds, 2nd General Resolution, | 11,500 | 11,500 | ||||||
New York City Municipal Water Finance Authority Water & Sewer System Revenue Bonds, Series A, 2nd Resolution, | 20,130 | 20,130 | ||||||
New York City Municipal Water Finance Authority Water & Sewer System Revenue Bonds, Subseries A-1, | 24,015 | 24,015 | ||||||
New York City New York IDA Civic Facilities Revenue VRDB, Sephardic Community Youth Center, (Manufacturers & Traders Trust Co. LOC), | 2,380 | 2,380 | ||||||
New York City Transitional Finance Authority Future Tax Secured Adjustable Revenue Subordinate Bonds, Series D3 | 31,900 | 31,900 | ||||||
New York City Water & Sewer System Municipal Finance Authority Adjustable Revenue Bonds, Second Generation Resolution, Series AA-3 | 12,200 | 12,200 | ||||||
New York City Water Finance Authority & Sewer System VRDB, Second General Resolution, | 21,400 | 21,400 | ||||||
New York City Water Finance Authority & Sewer System VRDB, Subseries B-3, | 1,200 | 1,200 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 33 | MONEY MARKET FUNDS |
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SCHEDULE OF INVESTMENTS
MUNICIPAL MONEY MARKET FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
New York – 11.9% – continued | ||||||||
New York Liberty Development Corp. Revenue Refunding VRDB, Series A1, World Trade Center Project, (U.S. Treasury Escrowed), | $20,030 | $20,030 | ||||||
New York Liberty Development Corp. Revenue Refunding VRDB, | 137,000 | 137,000 | ||||||
New York Mortgage Agency Homeowner Revenue VRDB, Series 159, | 30,000 | 30,000 | ||||||
New York State Dormitory Authority Revenue Non-State Supported Debt VRDB, Samaritan Medical Center, Series B, (HSBC Bank USA N.A. LOC), | 8,625 | 8,625 | ||||||
New York State Dormitory Authority Revenues Non State Supported Debt Revenue VRDB, FFT Senior Communities, Inc., (HSBC Bank USA N.A. LOC), | 2,800 | 2,800 | ||||||
New York State Energy Research & Development Authority Revenue Bonds, Subseries A-4, (Bank of Nova Scotia LOC), | 15,000 | 15,000 | ||||||
New York State Housing Finance Agency Revenue VRDB, 100 Maiden Lane, Series A, | 16,800 | 16,800 | ||||||
New York State Housing Finance Agency Revenue VRDB, 175 West 60th Street, Series A-2, (Manufacturers & Traders Trust Co. LOC), | 10,000 | 10,000 | ||||||
New York State Housing Finance Agency Revenue VRDB, Affordable Housing, Clinton Park Phase II, Series E-31, (Wells Fargo Bank N.A. LOC), | 15,000 | 15,000 |
PRINCIPAL (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
New York – 11.9% – continued | ||||||||
New York State Housing Finance Agency Revenue VRDB, Housing West 29th Street, Series A, (Wells Fargo Bank N.A. LOC), | $31,520 | $31,520 | ||||||
New York State Housing Finance Agency Revenue VRDB, Maestro W Chelsea Housing, (Wells Fargo Bank N.A. LOC), | 17,000 | 17,000 | ||||||
New York State Housing Finance Agency Revenue VRDB, Related 205 E 92N, (Wells Fargo Bank N.A. LOC), | 10,000 | 10,000 | ||||||
New York State Housing Finance Agency Revenue VRDB, Series A, Riverside Center, (Bank of America N.A. LOC), | 24,700 | 24,700 | ||||||
New York State Housing Finance Agency Revenue VRDB, West 30th Street Housing, Series A-2, (Wells Fargo Bank N.A. LOC), | 16,700 | 16,700 | ||||||
New York State Housing Finance Agency Revenue VRDB, West Chelsea, Series A, (Wells Fargo Bank N.A. LOC), | 29,000 | 29,000 | ||||||
New York State Housing Finance Agency VRDB, 855 6th Avenue, Series A, (Wells Fargo Bank N.A. LOC), | 10,000 | 10,000 | ||||||
Onondaga County New York Industrial Development Agency Civic Facilities Revenue VRDB, Syracuse Research Corp. Project, (Manufacturers & Traders Trust Co. LOC), | 6,265 | 6,265 | ||||||
Town of Niagara New York Area Development Corp. Revenue VRDB, Niagara Falls Memorial, (HSBC Bank USA N.A. LOC), | 7,120 | 7,120 | ||||||
Town of North Hempstead G.O. Limited Bonds Anticipatory Notes, Series C, | 24,740 | 24,802 | ||||||
667,747 |
See Notes to the Financial Statements.
MONEY MARKET FUNDS | 34 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
North Carolina – 3.0% | ||||||||
BB&T Municipal Trust Floaters, | $4,395 | $4,395 | ||||||
City of Raleigh North Carolina COPS VRDB, Series B, Downtown, | 36,300 | 36,300 | ||||||
Forsyth County North Carolina Industrial Facilities & Pollution Control Financing Authority Revenue VRDB, Recreation Facilities-YMCA Winston, (Branch Banking & Trust Co. LOC), | 1,310 | 1,310 | ||||||
Guilford County North Carolina G.O. VRDB, Series A, | 18,055 | 18,055 | ||||||
Series B, | 4,100 | 4,100 | ||||||
North Carolina Capital Facilities Finance Agency Revenue Bonds, Eagle-20060012 Class A, | 12,000 | 12,000 | ||||||
North Carolina Capital Facilities Finance Agency Revenue VRDB, YMCA of Greater Charlotte Project, Series A, (Branch Banking & Trust Co. LOC), | 4,435 | 4,435 | ||||||
North Carolina Capital Facilities Financial Agency Educational Facilities Revenue VRDB, Rocky Mountain Preparatory School, Series H, (Branch Banking & Trust Co. LOC), | 5,200 | 5,200 | ||||||
North Carolina Capital Recreational Facilities Finance Agency Revenue VRDB, YMCA Greater Charlotte Project, Series B, (Branch Banking & Trust Co. LOC), | 11,610 | 11,610 | ||||||
North Carolina Medical Care Commission Health Care Facilities Revenue VRDB, Series B, Wakemed, (Wells Fargo Bank N.A. LOC), | 9,400 | 9,400 | ||||||
North Carolina State Medical Care Commission Hospital Revenue VRDB, Moses Cone Health System, Series B, | 15,000 | 15,000 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
North Carolina – 3.0% – continued | ||||||||
Raleigh Durham North Carolina Airport Authority Revenue Refunding VRDB, Series C, (Royal Bank of Canada LOC), | $12,710 | $12,710 | ||||||
University of North Carolina at Chapel Hill Revenue Bonds, Eagle 720053014, Class A, | 5,800 | 5,800 | ||||||
Winston-Salem North Carolina Water & Sewer System Revenue VRDB, Series B, | 28,300 | 28,300 | ||||||
168,615 | ||||||||
North Dakota – 0.1% | ||||||||
North Dakota State Rural Water Finance Corp. Public Projects Construction Revenue Notes, Series B3, | 4,500 | 4,519 | ||||||
Ohio – 1.4% | ||||||||
Akron Bath Copley Ohio Joint Township Hospital District Revenue VRDB, Hospital Facilities-Summa Health Systems, Series B, (JPMorgan Chase Bank N.A. LOC), | 12,355 | 12,355 | ||||||
Cleveland Ohio Airport System Revenue VRDB, Series D, (Bank of America N.A. LOC), | 9,300 | 9,300 | ||||||
Cleveland-Cuyahoga County Ohio Port Authority Revenue VRDB, Euclid Avenue Housing Corp. Project, (U.S. Bank N.A. LOC), | 8,515 | 8,515 | ||||||
Cleveland-Cuyahoga County Port Authority Cultural Facilities Revenue VRDB, Playhouse Square Foundation Project, (U.S. Bank N.A. LOC), | 9,175 | 9,175 | ||||||
Cleveland-Cuyahoga County Port Authority Cultural Facilities Revenue VRDB, Series C, Museum of Art Project, | 4,900 | 4,900 | ||||||
County of Franklin Ohio Health Care Facilities Revenue VRDB, Ohio Presbyterian, Series A, (PNC Bank N.A. LOC), | 2,450 | 2,450 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 35 | MONEY MARKET FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MUNICIPAL MONEY MARKET FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
Ohio – 1.4% – continued | ||||||||
Franklin County Ohio Health Care Facilities Revenue VRDB, Friendship Village Dublin, Series B, (PNC Bank N.A. LOC), | $8,960 | $8,960 | ||||||
Montgomery County Ohio Economic Development Revenue VRDB, The Dayton Art Institute, (U.S. Bank N.A. LOC), | 4,800 | 4,800 | ||||||
Nuveen Ohio Quality Income Municipal Fund VRDP, | 16,000 | 16,000 | ||||||
State of Ohio G.O., Common Schools, | 4,600 | 4,600 | ||||||
81,055 | ||||||||
Oregon – 0.4% | ||||||||
Oregon Health & Science University Revenue VRDB, Series B-2, (MUFG Union Bank N.A. LOC), | 6,000 | 6,000 | ||||||
Oregon State Health Housing Educational & Cultural Facilities Authority Revenue VRDB, The Evangelical Lutheran, Series A, (U.S. Bank N.A. LOC), | 1,600 | 1,600 | ||||||
Oregon State Health, Housing, Educational & Cultural Facilities Authority Revenue Bonds, Assumption Village Project, Series A, (MUFG Union Bank N.A. LOC), | 2,890 | 2,890 | ||||||
State of Oregon G.O. Limited TANS, Series A, | 10,000 | 10,132 | ||||||
20,622 | ||||||||
Pennsylvania – 4.0% | ||||||||
Allegheny County IDA Revenue VRDB, Education Center Watson, (PNC Bank N.A. LOC), | 4,300 | 4,300 | ||||||
BB&T Municipal Trust Revenue Bonds, (Branch Banking & Trust Co. LOC), | 29,580 | 29,580 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
Pennsylvania – 4.0% – continued | ||||||||
Butler County IDA Pennsylvania Revenue Refunding VRDB, Concordia Lutheran, Series A, (JPMorgan Chase Bank N.A. LOC), | $14,395 | $14,395 | ||||||
Butler County Pennsylvania Industrial Development Authority Revenue VRDB, Concordia Lutheran, Series A, (JPMorgan Chase Bank N.A. LOC), | 9,235 | 9,235 | ||||||
City of Philadelphia Gas Works Revenue Refunding Bonds, 8th, Series E, (PNC Bank N.A. LOC), | 40,200 | 40,200 | ||||||
Geisinger Health System Authority VRDB, Series B, | 9,800 | 9,800 | ||||||
Haverford Township Pennsylvania G.O., School District, (TD Bank N.A. LOC), | 7,700 | 7,700 | ||||||
Horizon Hospital System Authority Pennsylvania Health & Housing Facilities Revenue VRDB, Senior, St. Paul Homes Project, (Manufacturers & Traders Trust Co. LOC), | 7,070 | 7,070 | ||||||
Lancaster Pennsylvania IDA Revenue VRDB, Mennonite Home Project, (Manufacturers & Traders Trust Co. LOC), | 6,600 | 6,600 | ||||||
Lower Merion School District G.O. Limited VRDB, Capital Project, Series A, (State Street Bank & Trust Co. LOC), | 10,915 | 10,915 | ||||||
Lower Merion School District VRDB, Series A-1, Capital Project, (U.S. Bank N.A. LOC), | 9,900 | 9,900 | ||||||
Montgomery County IDA Revenue VRDB, Acts Retirement Life Community, (TD Bank N.A. LOC), | 2,100 | 2,100 |
See Notes to the Financial Statements.
MONEY MARKET FUNDS | 36 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
Pennsylvania – 4.0% – continued | ||||||||
Pennsylvania Housing Financial Agency Multifamily Revenue VRDB, Series 2008, Special Limited Obligation, Foxwood, (FHLMC LOC), | $3,200 | $3,200 | ||||||
Pennsylvania State Turnpike Commission Registration Fee VRDB, Series B, (Assured Guaranty Municipal Corp. Insured), | 7,500 | 7,500 | ||||||
Philadelphia School District G.O. Refunding VRDB, Series C, (TD Bank N.A. LOC), | 12,685 | 12,685 | ||||||
RBC Municipal Products, Inc. Trust Floater Certificates G.O., (Royal Bank of Canada LOC), | 5,600 | 5,600 | ||||||
RBC Municipal Products, Inc. Trust Floater Certificates Revenue Bonds, Series B, (Royal Bank of Canada LOC), | 6,000 | 6,000 | ||||||
School District Of Philadelphia G.O. Unlimited Refunding VRDB, Series G, (PNC Bank N.A. LOC), | 15,000 | 15,000 | ||||||
Southcentral Pennsylvania General Authority Revenue VRDB, Hanover Lutheran Village Project, (Manufacturers & Traders Trust Co. LOC), | 7,570 | 7,570 | ||||||
University of Pittsburgh of The Commonwealth System of Higher Education Asset Revenue Notes, | 10,000 | 10,151 | ||||||
West Cornwall Pennsylvania Township Municipal Authority Revenue VRDB, | 3,760 | 3,760 | ||||||
223,261 |
PRINCIPAL (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
Puerto Rico – 1.5% | ||||||||
RBC Municipal Products, Inc. Trust Floater Certificates, Series E-46, (Royal Bank of Canada LOC), | $85,690 | $85,690 | ||||||
Rhode Island – 0.5% | ||||||||
Rhode Island Health & Educational Building Corp. Higher Education Facility Revenue Refunding VRDB, Roger Williams University, Series A, (U.S. Bank N.A. LOC), | 14,925 | 14,925 | ||||||
Rhode Island Health & Educational Building Corp. Higher Educational Facilities Revenue Refunding VRDB, Bryant University, Series C-15, (TD Bank N.A. LOC), | 11,815 | 11,815 | ||||||
26,740 | ||||||||
South Carolina – 0.8% | ||||||||
City of Columbia South Carolina Waterworks & Sewer System Revenue VRDB, (U.S. Bank N.A. LOC), | 10,000 | 10,000 | ||||||
Eclipse Funding Trust, G.O., Series 2006-0152, Solar Eclipse, Spartan, (U.S. Bank N.A. LOC), | 10,320 | 10,320 | ||||||
South Carolina Jobs EDA Hospital Revenue VRDB, Oconee Memorial Hospital, Inc., Series B, (Wachovia Bank N.A. LOC), | 8,400 | 8,400 | ||||||
South Carolina State Housing Finance & Development Authority Multifamily Revenue VRDB, Rental Franklin Square, (FHLMC LOC), | 9,800 | 9,800 | ||||||
South Carolina State Housing Financial & Development Authority Multifamily Revenue VRDB, Rental Housing Brookside Apartments, Series D, (FHLMC LOC), | 4,700 | 4,700 | ||||||
43,220 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 37 | MONEY MARKET FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MUNICIPAL MONEY MARKET FUND continued
PRINCIPAL (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
South Dakota – 0.3% | ||||||||
South Dakota Health & Educational Facilities Authority Revenue VRDB, Regional Health, | $3,300 | $3,300 | ||||||
South Dakota Health & Educational Facilities Authority Revenue VRDB, Sioux Valley Hospitals & Health, Series C, (U.S. Bank N.A. LOC), | 13,745 | 13,745 | ||||||
17,045 | ||||||||
Tennessee – 0.9% | ||||||||
Blount County Tennessee Public Building Authority Revenue VRDB, Series E-5-B, Local Government Public Improvement, (Branch Banking & Trust Co. LOC), | 4,685 | 4,685 | ||||||
Metropolitan Government Nashville & Davidson County Tennessee Health & Educational Facilities Board Revenue Refunding VRDB, Multifamily, Timberlake Project, (FNMA LOC), | 1,150 | 1,150 | ||||||
Metropolitan Government Nashville & Davidson County Tennessee IDB Revenue VRDB, Multifamily Housing, Arbor Knoll, Series A, (FNMA LOC), | 13,400 | 13,400 | ||||||
Sevier County Tennessee Public Building Authority VRDB, Local Government Public Improvement, (Branch Banking & Trust Co. LOC), | 7,745 | 7,745 | ||||||
Shelby County Tennessee Health Educational & Housing Facilities Board Multifamily Housing Revenue VRDB, Gateway Projects, | 5,575 | 5,575 | ||||||
Tennessee State Energy Acquisition Corp. Gas Revenue Floaters, (Branch Banking & Trust Co. LOC), | 20,530 | 20,530 | ||||||
53,085 |
PRINCIPAL (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
Texas – 12.4% | ||||||||
Austin Texas Water & Wastewater System Revenue Refunding VRDB, | $10,200 | $10,200 | ||||||
BB&T Municipal Trust Revenue VRDB, Series 2022, Floaters, (Branch Banking & Trust Co. LOC), | 1,695 | 1,695 | ||||||
BB&T Municipal Trust Various States Revenue Bonds, Floaters, Series 2043, (Branch Banking & Trust Co. LOC), | 1,285 | 1,285 | ||||||
Bexar County Health Care Facilities Development Corp. Adjustable Revenue Bonds, Series A, El Centro Del Barrio Project , (JPMorgan Chase Bank N.A. LOC), | 10,000 | 10,000 | ||||||
Capital Area Housing Finance Corp. Texas Revenue VRDB, Encino Pointe Apartments, (FHLMC LOC), | 15,380 | 15,380 | ||||||
Carroll Texas Independent School District G.O. Bonds, School Building, (Texas Permanent School Fund Program Guaranty Insured), | 8,000 | 8,000 | ||||||
City of Houston Revenue TRANS, | 35,000 | 35,233 | ||||||
5.00%, 6/30/15 | 12,500 | 12,956 | ||||||
Clipper Caraval Tax-Exempt Certificate Trust, Clipper Tax-Exempt 23, Revenue Bonds, | 20,000 | 20,000 | ||||||
Crawford Texas Education Facilities Corp. Revenue Bonds, Prince of Peace Christian, (Wells Fargo Bank N.A. LOC), | 4,600 | 4,600 | ||||||
Crawford Texas Education Facilities Corp. Revenue Bonds, Prince of Peace Christian School, (Wachovia Bank N.A. LOC), | 3,355 | 3,355 | ||||||
Eclipse Funding Trust, Texas, G.O., Series 2007-0080, Solar Eclipse, (U.S. Bank N.A. LOC), | 10,295 | 10,295 |
See Notes to the Financial Statements.
MONEY MARKET FUNDS | 38 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
Texas – 12.4% – continued | ||||||||
Eclipse Funding Trust, Waco Texas, Revenue Bonds, Series 2007-0040, Solar Eclipse, (U.S. Bank N.A. LOC), | $21,125 | $21,125 | ||||||
Harris County Cultural Education Facilities Finance Corp. Revenue VRDB, Memorial Hermann Health Systems, | 5,000 | 5,000 | ||||||
Harris County Cultural Education Facilities Finance Corp. Revenue VRDB, Methodist Hospital, | 10,625 | 10,625 | ||||||
Harris County Texas Hospital District Revenue Refunding VRDB, Senior Lien, (JPMorgan Chase Bank N.A. LOC), | 18,730 | 18,730 | ||||||
Mesquite Independent School District G.O. VRDB, School Building, Series A, (Texas Permanent School Fund Program Guaranty Insured), | 845 | 845 | ||||||
Northwest Texas Independent School District G.O. VRDB, (Texas Permanent School Fund Program Guaranty Insured), | 2,760 | 2,760 | ||||||
Nueces County Health Facilities Development Corp. Revenue VRDB, Series A, Driscoll Children’s Foundation, (JPMorgan Chase Bank N.A. LOC), | 9,800 | 9,800 | ||||||
Port Arthur Navigation District Industrial Development Corp. Exempt Facilities Revenue VRDB, Total Petrochemicals, Series A, (Total S.A. Gtd.), | 55,665 | 55,665 | ||||||
Port of Arthur Navigation District Industrial Development Corp. Exempt Facilities Revenue VRDB, Total Petrochemicals, (Total S.A. Gtd.), | 10,000 | 10,000 | ||||||
Port of Arthur Texas Navigation District Industrial Development Corp. Exempt Facilities Revenue VRDB, Total Petrochemicals, Series B, (Total S.A. Gtd.), | 5,000 | 5,000 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
Texas – 12.4% – continued | ||||||||
Port of Port Arthur Navigation District Exempt Facilities Revenue VRDB, Total Petrochemicals Project, (Total S.A. Gtd.), | $20,000 | $20,000 | ||||||
Port of Port Arthur Texas Navigation District Exempt Facilities Revenue VRDB, Total Petrochemicals USA, (Total S.A. Gtd.), | 12,900 | 12,900 | ||||||
RBC Municipal Products, Inc. Trust Revenue VRDB, Floaters, (Royal Bank of Canada LOC), | 10,000 | 10,000 | ||||||
RBC Municipal Products, Inc. Trust Revenue VRDB, Series E-18, (Royal Bank of Canada LOC), | 50,000 | 50,000 | ||||||
San Antonio Texas Multifamily Housing Trust Financial Corp. Revenue VRDB, | 20,935 | 20,935 | ||||||
State of Texas G.O. VRDB, Series A, | 7,835 | 7,835 | ||||||
State of Texas G.O. VRDB, Veterans, | 13,800 | 13,800 | ||||||
State of Texas G.O. VRDB, Veterans, | 25,000 | 25,000 | ||||||
State Of Texas, G.O. Unlimited VRDB, Veterans, Series A, | 50,000 | 50,000 | ||||||
Strategic Housing Finance Corp. Travis County Multi Family Housing Revenue Adjustable Revenue Bonds, Silver Springs Apartments Project, (U.S. Treasury Escrowed), | 20,000 | 20,000 | ||||||
Tarrant County Cultural Education Facilities Finance Corp. Revenue Refunding VRDB, Christus Health, Series C-4, (Bank of Montreal LOC), | 5,340 | 5,340 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 39 | MONEY MARKET FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MUNICIPAL MONEY MARKET FUND continued
PRINCIPAL (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
Texas – 12.4% – continued | ||||||||
Tarrant County Multifamily Housing Financial Corp. Revenue VRDB, Series 2003, Housing Gateway Apartments, (FNMA LOC), | $7,650 | $7,650 | ||||||
Tarrant County Texas Cultural Educational Finance Corp. Retirement Facilities Revenue VRDB, Northwest Edgemere Project, (Bank of America N.A. LOC), | 17,670 | 17,670 | ||||||
Texas Department Multifamily Housing & Community Affairs Revenue VRDB, Woodmont Apartments, (FHLMC LOC), | 14,665 | 14,665 | ||||||
Texas State G.O. Unlimited TRANS, | 130,000 | 131,624 | ||||||
Texas State G.O. Unlimited VRDB, | 20,000 | 20,000 | ||||||
699,968 | ||||||||
Utah – 1.1% | ||||||||
Salt Lake County G.O. Limited TRANS, | 40,000 | 40,089 | ||||||
Utah Housing Corp. Multifamily Revenue VRDB, Florentine Villas, Series A, (FHLMC LOC), | 18,880 | 18,880 | ||||||
58,969 | ||||||||
Virginia – 1.2% | ||||||||
Alexandria IDA Revenue Refunding VRDB, Goodwin House, (Wells Fargo Bank N.A. LOC), | 6,800 | 6,800 | ||||||
Hampton Virginia Redevelopment & Housing Authority Multifamily Housing Revenue Refunding VRDB, Hampton Center Apartments Project, (FHLMC LOC), | 13,310 | 13,310 | ||||||
Lynchburg IDA Revenue Refunding VRDB, Hospital Centra Health, Series E, (FHLB of Atlanta LOC), | 5,700 | 5,700 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
Virginia – 1.2% – continued | ||||||||
Lynchburg Virginia IDA Revenue Refunding VRDB, Hospital Centra Health, Series D, (FHLB of Atlanta LOC), | $6,700 | $6,700 | ||||||
Nuveen Virginia Premium Income Municipal Fund VRDP, | 25,000 | 25,000 | ||||||
Stafford County & Staunton Industrial Development Authority Variable Rate Demand Obligation, (Bank of America N.A. LOC), | 10,000 | 10,000 | ||||||
67,510 | ||||||||
Washington – 1.2% | ||||||||
Clipper Caraval Tax-Exempt Certificate Trust, Clipper Tax-Exempt, Revenue Bonds, Series 2009-65, Washington, | 14,740 | 14,740 | ||||||
Everett Public Facilities District Revenue VRDB, (Bank of New York Mellon LOC), | 16,415 | 16,415 | ||||||
Washington Health Care Facilities Authority Revenue VRDB, Catholic Health, | 20,200 | 20,200 | ||||||
Washington Higher Education Facilities Authority Revenue VRDB, Whitman College Project, | 14,085 | 14,085 | ||||||
Washington State Housing Finance Commission Revenue Refunding VRDB, Antioch University Project, (MUFG Union Bank N.A. LOC), | 4,540 | 4,540 | ||||||
69,980 | ||||||||
West Virginia – 0.4% | ||||||||
Cabell County West Virginia County Commission Revenue VRDB, Huntington YMCA Project, (JPMorgan Chase Bank N.A. LOC), | 2,450 | 2,450 | ||||||
West Virginia Hospital Finance Authority Revenue Refunding & Improvement VRDB, Cabell Hospital, Series A, (Branch Banking & Trust Co. LOC), | 21,325 | 21,325 | ||||||
23,775 |
See Notes to the Financial Statements.
MONEY MARKET FUNDS | 40 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
Wisconsin – 4.4% | ||||||||
Clipper Caraval Tax-Exempt Certificate Trust, Clipper Tax, Revenue Bonds, Series 2009-36, Wisconsin, | $25,000 | $25,000 | ||||||
Clipper Caraval Tax-Exempt Certificate Trust, Clipper Tax-Exempt 24, Revenue Bonds, Series 2009-53, Wisconsin, | 21,745 | 21,745 | ||||||
Milwaukee Redevelopment Authority Lease Revenue VRDB, University of Wisconsin-Kenilworth Project, (U.S. Bank N.A. LOC), | 32,380 | 32,380 | ||||||
PMA Levy & Aid Anticipation Revenue Notes Program, Series A, | 7,250 | 7,255 | ||||||
Wisconsin Health & Educational Facilities Authority Revenue Refunding VRDB, Medical College Wisconsin, Series B, (U.S. Bank N.A. LOC), | 17,500 | 17,500 | ||||||
Wisconsin Health & Educational Facilities Authority Revenue Refunding VRDB, Oakwood Village, (BMO Harris Bank N.A. LOC), | 7,610 | 7,610 | ||||||
Wisconsin Health & Educational Facilities Authority Revenue Refunding VRDB, Series D, Hospital Sisters Health System Services, (Bank of Montreal LOC), | 28,750 | 28,750 | ||||||
Wisconsin Health & Educational Facilities Authority Revenue VRDB, Marshfield, Series B, (JPMorgan Chase Bank N.A. LOC), | 30,000 | 30,000 | ||||||
Wisconsin Health & Educational Facilities Authority Revenue VRDB, St. Norbert College, Inc., (JPMorgan Chase Bank N.A. LOC), | 16,700 | 16,700 | ||||||
Wisconsin School Districts Temporary Borrowing Program Cash Flow Administration Program Revenue Note Participation, Series A, | 660 | 660 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
Wisconsin – 4.4% – continued | ||||||||
Wisconsin State Health & Educational Facilities Authority Adjustable Revenue Bonds, Series A, Prohealth Care, Inc., (U.S. Bank N.A. LOC), | $6,400 | $6,400 | ||||||
Wisconsin State Health & Educational Facilities Authority Revenue Refunding VRDB, Lawrence University, (JPMorgan Chase Bank N.A. LOC), | 1,785 | 1,785 | ||||||
Wisconsin State Health & Educational Facilities Authority Revenue VRDB, Aurora Healthcare, Series C, (Bank of Montreal LOC), | 5,400 | 5,400 | ||||||
Wisconsin State Health & Educational Facilities Authority Revenue VRDB, Series 2003, Mequon Jewish Project, (JPMorgan Chase Bank N.A. LOC), | 5,025 | 5,025 | ||||||
Wisconsin State Health & Educational Facilities Authority Revenue VRDB, Series 2008-B, Meriter Retirement Services, (U.S. Bank N.A. LOC), | 13,285 | 13,285 | ||||||
Wisconsin State Health & Educational Facilities Authority Revenue VRDB, Watertown Memorial Hospital, Inc. Project, (JPMorgan Chase Bank N.A. LOC), | 15,000 | 15,000 | ||||||
Wisconsin State Health & Educational Facilities Authority Revenue VRDB, Series B, Aurora Healthcare, (Bank of Montreal LOC), | 10,775 | 10,775 | ||||||
Wisconsin State Rural Water Construction Loan Program Revenue Anticipatory Notes, | 4,045 | 4,045 | ||||||
249,315 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 41 | MONEY MARKET FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MUNICIPAL MONEY MARKET FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
MUNICIPAL INVESTMENTS – 100.1% – continued | ||||||||
Wyoming – 0.4% | ||||||||
County of Uinta Wyoming PCR Refunding VRDB, Chevron USA, Inc. Project, | $25,000 | $25,000 | ||||||
Municipal States Pooled Securities – 0.6% |
| |||||||
BB&T Municipal Trust Floaters, Series 1036, (Branch Banking & Trust Co. LOC), | 3,335 | 3,335 | ||||||
BB&T Municipal Trust Various States Adjustable Floaters, Series 5000, (Cooperatieve Centrale Raiffeisen- Boerenleenbank Bank LOC), | 3,955 | 3,955 | ||||||
BB&T Municipal Trust Various States Revenue Bonds, Floaters, Series 1007, (Branch Banking & Trust Co. LOC), | 2,295 | 2,295 | ||||||
BB&T Municipal Trust Various States VRDB, Series 1039, (Branch Banking & Trust Co. LOC), | 4,655 | 4,655 | ||||||
BB&T Municipal Trust Various States, Series 1035, (Branch Banking & Trust Co. LOC), | 7,750 | 7,750 | ||||||
Series 5002, (Cooperatieve Centrale Raiffeisen- Boerenleenbank Bank LOC), | 10,815 | 10,815 | ||||||
32,805 | ||||||||
Total Municipal Investments | ||||||||
(Cost $5,641,279) | 5,641,279 | |||||||
Total Investments – 100.1% | ||||||||
(Cost $5,641,279) (4) | 5,641,279 | |||||||
Liabilities less Other Assets – (0.1)% | (6,211 | ) | ||||||
NET ASSETS – 100.0% | $5,635,068 |
(1) | 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. The value of these securities is determined in accordance with procedures established by the Trustees of Northern Funds. |
(2) | Restricted security that has been deemed illiquid. At September 30, 2014, the value of this restricted illiquid security amounted to approximately $25,000. Additional information on this restricted illiquid security is as follows: |
SECURITY | ACQUISITION AND ENFORCEABLE DATE | ACQUISITION COST (000s) | ||||
Arizona Board of Regents COPS, Floaters, Series 1918, 0.06%, 10/8/14 | 6/19/13 | $25 |
(3) | Maturity date represents the next interest reset date. The security’s legal final maturity date is longer than the reset date. Securities with longer maturity dates have a greater sensitivity to changes in liquidity and/or credit risk. (4) The cost for federal income tax purposes was $5,641,279. |
Percentages shown are based on Net Assets.
At September 30, 2014, the industry sectors for the Fund were:
INDUSTRY SECTOR | % OF TOTAL INVESTMENTS | |||
Air, Transportation, Water Services and Solid Waste Management | 17.9% | |||
Educational Services | 11.0 | |||
Electric Services, Power and Combined Utilities | 6.1 | |||
Executive, Legislative & General Government | 18.6 | |||
General Medical and Surgical Hospitals, Specialty Hospitals, Nursing and Personal Care | 17.9 | |||
Miscellaneous Revenues | 7.5 | |||
Urban and Community Development, Housing Programs and Social Services | 13.9 | |||
All other sectors less than 5% | 7.1 | |||
Total | 100.0% |
At September 30, 2014, the maturity analysis for the Fund as a percentage of investments was:
MATURITY ANALYSIS | % | |||
Overnight | 34.8% | |||
2 – 15 Days | 49.2 | |||
16 – 30 Days | 0.1 | |||
31 – 60 Days | 1.0 | |||
61– 97 Days | 4.2 | |||
98 – 180 Days | 1.0 | |||
181 – 270 Days | 3.9 | |||
271 – 366 Days | 5.4 | |||
367 – 397 Days | 0.4 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
See Notes to the Financial Statements.
MONEY MARKET FUNDS | 42 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments, which are carried at amortized cost, which approximates fair value, by the above fair value hierarchy as of September 30, 2014:
LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | |||||||||||||
Investments held by Municipal Money Market Fund | $– | $5,641,279 | (1) | $– | $5,641,279 |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 43 | MONEY MARKET FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
U.S. GOVERNMENT MONEY MARKET FUND
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 64.1% (1) | ||||||||
Federal Farm Credit Bank – 11.5% | ||||||||
FFCB Discount Notes, | $2,000 | $2,000 | ||||||
0.15%, 10/9/14 | 4,000 | 4,000 | ||||||
0.11%, 11/10/14 | 6,000 | 5,999 | ||||||
0.12%, 11/10/14 | 2,000 | 2,000 | ||||||
0.14%, 11/17/14 | 3,000 | 2,999 | ||||||
0.13%, 12/8/14 | 2,000 | 2,000 | ||||||
0.10%, 2/10/15 | 3,000 | 2,999 | ||||||
0.10%, 2/19/15 | 5,000 | 4,998 | ||||||
0.11%, 3/11/15 | 4,000 | 3,998 | ||||||
0.11%, 4/16/15 | 2,000 | 1,999 | ||||||
0.13%, 5/6/15 | 1,000 | 999 | ||||||
0.12%, 5/28/15 | 20,000 | 19,984 | ||||||
FFCB FRN, | 5,000 | 5,000 | ||||||
0.22%, 10/1/14 (2) | 15,000 | 15,009 | ||||||
0.23%, 10/1/14 (2) | 2,000 | 2,001 | ||||||
0.11%, 10/3/14 (2) | 12,000 | 11,999 | ||||||
0.10%, 10/4/14 (2) | 6,000 | 6,000 | ||||||
0.27%, 10/4/14 (2) | 3,000 | 3,003 | ||||||
0.12%, 10/6/14 (2) | 6,000 | 5,999 | ||||||
0.13%, 10/8/14 (2) | 4,500 | 4,500 | ||||||
0.18%, 10/13/14 (2) | 2,500 | 2,500 | ||||||
0.10%, 10/16/14 (2) | 3,000 | 3,000 | ||||||
0.10%, 10/18/14 (2) | 4,500 | 4,499 | ||||||
0.13%, 10/18/14 (2) | 8,500 | 8,499 | ||||||
0.13%, 10/20/14 | 2,000 | 2,000 | ||||||
0.11%, 10/21/14 (2) | 3,000 | 3,000 | ||||||
0.18%, 10/22/14 (2) | 2,000 | 2,001 | ||||||
0.12%, 10/23/14 (2) | 3,000 | 3,000 | ||||||
0.29%, 10/23/14 (2) | 2,000 | 2,002 | ||||||
0.20%, 10/24/14 (2) | 3,000 | 3,002 | ||||||
0.10%, 10/26/14 (2) | 6,000 | 6,000 | ||||||
0.13%, 10/26/14 (2) | 3,000 | 3,000 | ||||||
0.10%, 10/27/14 (2) | 19,000 | 19,000 | ||||||
0.13%, 10/28/14 (2) | 7,000 | 7,000 | ||||||
175,989 | ||||||||
Federal Home Loan Bank – 29.5% |
| |||||||
FHLB Bonds, | 4,000 | 4,000 | ||||||
0.09%, 1/13/15 | 15,000 | 14,999 | ||||||
0.09%, 2/2/15 | 4,000 | 3,999 | ||||||
0.09%, 2/19/15 | 2,000 | 2,000 | ||||||
0.09%, 3/5/15 | 10,000 | 9,999 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 64.1% (1) – continued | ||||||||
Federal Home Loan Bank – 29.5% – continued |
| |||||||
0.10%, 3/6/15 | $5,000 | $5,000 | ||||||
0.10%, 3/9/15 | 24,000 | 23,997 | ||||||
0.09%, 3/23/15 | 26,000 | 25,997 | ||||||
0.11%, 4/2/15 | 4,000 | 3,999 | ||||||
0.11%, 4/9/15 | 10,000 | 9,999 | ||||||
0.12%, 4/10/15 | 12,000 | 11,999 | ||||||
0.12%, 4/14/15 | 3,000 | 3,000 | ||||||
0.12%, 4/15/15 | 14,000 | 13,998 | ||||||
0.12%, 5/1/15 | 8,000 | 8,001 | ||||||
0.13%, 5/12/15 | 10,000 | 9,999 | ||||||
0.22%, 7/17/15 | 6,000 | 6,000 | ||||||
0.23%, 8/3/15 | 9,205 | 9,205 | ||||||
0.27%, 10/9/15 | 4,000 | 4,000 | ||||||
FHLB Discount Notes, | 6,000 | 6,000 | ||||||
0.06%, 10/3/14 | 2,000 | 2,000 | ||||||
0.09%, 10/17/14 | 10,000 | 10,000 | ||||||
0.08%, 10/22/14 | 14,000 | 13,999 | ||||||
0.16%, 10/27/14 | 3,000 | 3,000 | ||||||
0.07%, 10/29/14 | 109,000 | 108,994 | ||||||
0.16%, 10/29/14 | 3,000 | 3,000 | ||||||
0.06%, 10/31/14 | 8,000 | 7,999 | ||||||
0.09%, 10/31/14 | 33,000 | 32,998 | ||||||
0.10%, 1/7/15 | 3,000 | 2,999 | ||||||
FHLB FRN, | 20,000 | 19,997 | ||||||
0.14%, 10/11/14 (2) | 9,000 | 8,999 | ||||||
0.10%, 10/14/14 (2) | 7,000 | 7,000 | ||||||
0.11%, 10/16/14 (2) | 1,000 | 1,000 | ||||||
0.11%, 10/18/14 (2) | 3,000 | 3,000 | ||||||
0.10%, 10/19/14 (2) | 15,000 | 15,000 | ||||||
0.10%, 10/20/14 (2) | 13,000 | 12,999 | ||||||
0.12%, 10/21/14 (2) | 8,000 | 7,999 | ||||||
0.15%, 10/23/14 (2) | 3,000 | 3,000 | ||||||
0.13%, 11/23/14 (2) | 12,000 | 12,000 | ||||||
452,174 | ||||||||
Federal Home Loan Mortgage Corporation – 7.3% |
| |||||||
FHLMC Discount Notes, | 31,000 | 30,995 | ||||||
0.10%, 3/10/15 | 9,000 | 8,996 | ||||||
FHLMC FRN, | 9,000 | 9,000 | ||||||
0.13%, 10/16/14 (2) | 37,000 | 37,003 | ||||||
0.11%, 10/18/14 (2) | 7,000 | 6,999 |
See Notes to the Financial Statements.
MONEY MARKET FUNDS | 44 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 64.1% (1) – continued | ||||||||
Federal Home Loan Mortgage Corporation – 7.3% – continued |
| |||||||
0.14%, 10/26/14 (2) | $18,000 | $18,005 | ||||||
110,998 | ||||||||
Federal National Mortgage Association – 15.8% |
| |||||||
FNMA Bond, | 13,560 | 13,576 | ||||||
FNMA Discount Notes, | 39,193 | 39,187 | ||||||
0.09%, 10/1/14 | 38,000 | 38,000 | ||||||
0.09%, 12/1/14 | 27,000 | 26,996 | ||||||
0.09%, 1/2/15 | 33,000 | 32,992 | ||||||
0.03%, 1/22/15 | 18,000 | 17,998 | ||||||
0.04%, 2/2/15 | 10,000 | 9,997 | ||||||
0.11%, 2/2/15 | 18,000 | 17,995 | ||||||
FNMA FRN, | 8,000 | 7,999 | ||||||
0.16%, 10/20/14 (2) | 3,000 | 3,000 | ||||||
0.14%, 10/21/14 (2) | 15,000 | 15,005 | ||||||
0.12%, 10/27/14 (2) | 18,500 | 18,500 | ||||||
241,245 | ||||||||
Total U.S. Government Agencies | ||||||||
(Cost $980,406) | 980,406 | |||||||
U.S. GOVERNMENT OBLIGATIONS – 1.2% | ||||||||
U.S. Treasury Bills – 0.6% | ||||||||
0.06%, 1/2/15 | 9,000 | 8,998 | ||||||
U.S. Treasury Floating Rate Notes – 0.6% |
| |||||||
0.06%, 10/1/14 (2) | 7,180 | 7,178 | ||||||
0.09%, 10/1/14 (2) | 3,000 | 3,000 | ||||||
10,178 | ||||||||
Total U.S. Government Obligations | ||||||||
(Cost $19,176) | 19,176 | |||||||
Investments, at Amortized Cost | ||||||||
($999,582) | 999,582 | |||||||
REPURCHASE AGREEMENTS – 30.4% | ||||||||
Joint Repurchase Agreements – 3.3% (3) | ||||||||
Bank of America Securities LLC, dated 9/30/14, repurchase price $16,666 | 16,666 | 16,666 | ||||||
Morgan Stanley & Co., Inc., dated 9/30/14, repurchase price $16,667 | 16,667 | 16,667 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
REPURCHASE AGREEMENTS – 30.4% – continued | ||||||||
Joint Repurchase Agreements – 3.3% (3) – continued |
| |||||||
Societe Generale, New York Branch, dated 9/30/14, repurchase price $16,667 | $16,667 | $16,667 | ||||||
50,000 | ||||||||
Repurchase Agreements – 27.1% (4) | ||||||||
Bank of America N.A., dated 9/30/14, repurchase price $250,000 | 250,000 | 250,000 | ||||||
Barclays Capital, Inc., dated 9/30/14, repurchase price $50,003 | 50,000 | 50,000 | ||||||
Citigroup Global Markets, Inc., dated 9/30/14, repurchase price $115,712 | 115,712 | 115,712 | ||||||
415,712 | ||||||||
Total Repurchase Agreements | ||||||||
(Cost $465,712) | 465,712 | |||||||
Total Investments – 95.7% | ||||||||
(Cost $1,465,294) (5) | 1,465,294 | |||||||
Other Assets less Liabilities – 4.3% | 65,273 | |||||||
NET ASSETS – 100.0% | $1,530,567 |
(1) | The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury. On September 7, 2008, the Federal Housing Finance Agency (“FHFA”) placed FNMA and FHLMC in conservatorship. The United States Treasury has put in place a set of financing agreements to ensure that these entities continue to meet their obligations to holders of bonds that they have issued or guaranteed. |
(2) | Maturity date represents the next interest reset date. The security’s legal final maturity date is longer than the reset date. Securities with longer maturity dates have a greater sensitivity to changes in liquidity and/or credit risk. |
(3) | The nature and terms of the collateral received for the joint repurchase agreements are as follows: |
NAME | FAIR VALUE (000s) | COUPON RATES | MATURITY DATES | |||||||||
U.S. Treasury Bonds | $4,377 | 3.63% | 4/15/28 | |||||||||
U.S. Treasury Notes | $46,500 | 0.13% – 3.38% | 10/31/14 – 7/15/23 | |||||||||
Total | $50,877 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 45 | MONEY MARKET FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
U.S. GOVERNMENT MONEY MARKET FUND continued | SEPTEMBER 30, 2014 (UNAUDITED) |
(4) | The nature and terms of the collateral received for the repurchase agreements are as follows: |
NAME | FAIR VALUE | COUPON RATES | MATURITY DATES | |||||||||
FHLMC | $37,441 | 3.5% | 5/1/42 | |||||||||
FNMA | $220,059 | 3.50% – 4.00% | 5/1/42 – 10/1/43 | |||||||||
GNMA | $76,389 | 4.00% | 4/20/44 | |||||||||
U.S. Treasury Bonds | $47,171 | 2.42% – 3.63% | 4/15/28 – 5/15/29 | |||||||||
U.S. Treasury Notes | $97,500 | 0.13% – 3.38% | 10/31/14 – 07/15/23 | |||||||||
Total | $478,560 |
(5) | The cost for federal income tax purposes was $1,465,294. |
Percentages shown are based on Net Assets.
At September 30, 2014, the maturity analysis for the Fund as a percentage of investments was:
MATURITY ANALYSIS | % | |||
Overnight | 33.1% | |||
2 – 15 Days | 10.3 | |||
16 – 30 Days | 23.7 | |||
31 – 60 Days | 6.8 | |||
61 – 97 Days | 7.5 | |||
98 – 180 Days | 11.6 | |||
181 – 270 Days | 5.7 | |||
271 – 366 Days | 1.0 | |||
367 – 397 Days | 0.3 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments, which are carried at amortized cost, which approximates fair value, by the above fair value hierarchy as of September 30, 2014:
LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | |||||||||||||
Investments held by U.S. Government Money Market Fund | $– | $1,465,294 | (1) | $– | $1,465,294 |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
MONEY MARKET FUNDS | 46 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
U.S. GOVERNMENT SELECT MONEY MARKET FUND | SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 80.3% (1) | ||||||||
Federal Farm Credit Bank – 24.0% | ||||||||
FFCB Discount Notes, | $13,524 | $13,524 | ||||||
0.13%, 10/3/14 | 3,000 | 3,000 | ||||||
0.15%, 10/7/14 | 4,000 | 4,000 | ||||||
0.15%, 10/9/14 | 9,000 | 9,000 | ||||||
0.10%, 10/21/14 | 8,000 | 8,000 | ||||||
0.10%, 10/23/14 | 36,000 | 35,998 | ||||||
0.11%, 11/6/14 | 25,000 | 24,997 | ||||||
0.11%, 11/10/14 | 15,000 | 14,998 | ||||||
0.12%, 11/10/14 | 6,000 | 5,999 | ||||||
0.14%, 11/14/14 | 4,000 | 3,999 | ||||||
0.14%, 11/17/14 | 7,000 | 6,999 | ||||||
0.12%, 12/5/14 | 30,000 | 29,993 | ||||||
0.13%, 12/8/14 | 6,000 | 5,999 | ||||||
0.09%, 12/15/14 | 13,000 | 12,998 | ||||||
0.07%, 1/27/15 | 8,000 | 7,998 | ||||||
0.10%, 2/10/15 | 7,000 | 6,997 | ||||||
0.10%, 2/19/15 | 12,000 | 11,995 | ||||||
0.11%, 2/25/15 | 9,000 | 8,996 | ||||||
0.11%, 3/11/15 | 9,000 | 8,996 | ||||||
0.11%, 3/13/15 | 23,000 | 22,989 | ||||||
0.12%, 4/17/15 | 5,000 | 4,997 | ||||||
0.13%, 5/6/15 | 3,000 | 2,998 | ||||||
0.12%, 5/20/15 | 10,000 | 9,992 | ||||||
0.12%, 5/22/15 | 10,000 | 9,992 | ||||||
FFCB FRN, | 11,500 | 11,500 | ||||||
0.14%, 10/1/14 (2) | 15,000 | 15,000 | ||||||
0.17%, 10/1/14 (2) | 16,000 | 15,999 | ||||||
0.22%, 10/1/14 (2) | 24,000 | 24,015 | ||||||
0.23%, 10/1/14 (2) | 4,000 | 4,003 | ||||||
0.25%, 10/1/14 (2) | 10,000 | 10,003 | ||||||
0.11%, 10/3/14 (2) | 20,000 | 19,999 | ||||||
0.10%, 10/4/14 (2) | 16,000 | 16,000 | ||||||
0.27%, 10/4/14 (2) | 7,000 | 7,006 | ||||||
0.12%, 10/6/14 (2) | 15,000 | 14,998 | ||||||
0.13%, 10/6/14 (2) | 5,000 | 4,999 | ||||||
0.19%, 10/6/14 (2) | 15,000 | 15,004 | ||||||
0.13%, 10/8/14 (2) | 11,500 | 11,500 | ||||||
0.12%, 10/9/14 | 8,500 | 8,500 | ||||||
0.12%, 10/11/14 (2) | 29,000 | 28,998 | ||||||
0.18%, 10/13/14 (2) | 6,000 | 6,001 | ||||||
0.10%, 10/15/14 (2) | 42,000 | 41,998 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 80.3% (1) – continued | ||||||||
Federal Farm Credit Bank – 24.0% – continued |
| |||||||
0.10%, 10/16/14 (2) | $9,000 | $8,999 | ||||||
0.10%, 10/18/14 (2) | 12,000 | 11,999 | ||||||
0.13%, 10/18/14 (2) | 19,500 | 19,498 | ||||||
0.15%, 10/19/14 (2) | 16,000 | 16,006 | ||||||
0.10%, 10/20/14 (2) | 7,500 | 7,500 | ||||||
0.12%, 10/20/14 (2) | 23,000 | 22,996 | ||||||
0.13%, 10/20/14 | 5,000 | 5,000 | ||||||
0.18%, 10/20/14 (2) | 20,200 | 20,205 | ||||||
0.11%, 10/21/14 (2) | 38,000 | 37,995 | ||||||
0.18%, 10/22/14 (2) | 4,000 | 4,002 | ||||||
0.29%, 10/23/14 (2) | 5,000 | 5,004 | ||||||
0.20%, 10/24/14 (2) | 3,000 | 3,003 | ||||||
0.12%, 10/25/14 (2) | 8,500 | 8,499 | ||||||
0.13%, 10/26/14 (2) | 8,000 | 8,000 | ||||||
0.10%, 10/27/14 (2) | 19,000 | 18,999 | ||||||
0.16%, 10/27/14 (2) | 14,500 | 14,501 | ||||||
0.09%, 10/28/14 (2) | 23,000 | 22,998 | ||||||
0.13%, 10/28/14 (2) | 17,000 | 16,999 | ||||||
0.14%, 10/28/14 (2) | 29,500 | 29,502 | ||||||
812,682 | ||||||||
Federal Home Loan Bank – 56.3% |
| |||||||
FHLB Bonds, | 7,000 | 7,000 | ||||||
0.11%, 1/9/15 | 16,000 | 16,002 | ||||||
0.09%, 1/13/15 | 16,400 | 16,399 | ||||||
0.10%, 1/14/15 | 38,000 | 38,005 | ||||||
0.10%, 1/15/15 | 40,000 | 40,005 | ||||||
0.09%, 1/16/15 | 16,000 | 16,002 | ||||||
0.09%, 2/2/15 | 10,000 | 9,999 | ||||||
0.22%, 2/2/15 | 19,000 | 19,010 | ||||||
0.09%, 2/19/15 | 4,000 | 4,000 | ||||||
0.09%, 3/5/15 | 23,000 | 22,998 | ||||||
0.10%, 3/6/15 | 12,000 | 12,001 | ||||||
0.10%, 3/9/15 | 57,000 | 56,992 | ||||||
0.11%, 4/2/15 | 10,000 | 9,999 | ||||||
0.11%, 4/9/15 | 25,000 | 24,996 | ||||||
0.12%, 4/10/15 | 10,000 | 9,999 | ||||||
0.12%, 4/14/15 | 8,000 | 7,999 | ||||||
0.12%, 5/1/15 | 20,000 | 20,002 | ||||||
0.13%, 5/12/15 | 12,000 | 11,999 | ||||||
0.22%, 7/17/15 | 16,000 | 16,000 | ||||||
0.23%, 8/3/15 | 21,865 | 21,865 | ||||||
0.19%, 9/10/15 | 10,000 | 9,999 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 47 | MONEY MARKET FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
U.S. GOVERNMENT SELECT MONEY MARKET FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 80.3% (1) – continued | ||||||||
Federal Home Loan Bank – 56.3% – continued |
| |||||||
0.20%, 9/25/15 | $3,000 | $3,000 | ||||||
0.25%, 10/2/15 | 10,000 | 10,000 | ||||||
0.27%, 10/9/15 | 8,000 | 8,000 | ||||||
FHLB Discount Notes, | 43,000 | 43,000 | ||||||
0.08%, 10/3/14 | 49,000 | 49,000 | ||||||
0.09%, 10/8/14 | 43,000 | 42,999 | ||||||
0.07%, 10/22/14 | 125,000 | 124,995 | ||||||
0.10%, 10/22/14 | 25,000 | 24,999 | ||||||
0.01%, 10/24/14 | 42,000 | 41,999 | ||||||
0.07%, 10/24/14 | 20,000 | 19,999 | ||||||
0.16%, 10/24/14 | 7,000 | 7,000 | ||||||
0.16%, 10/27/14 | 7,000 | 6,999 | ||||||
0.07%, 10/29/14 | 262,950 | 262,936 | ||||||
0.16%, 10/29/14 | 9,000 | 8,999 | ||||||
0.06%, 10/31/14 | 19,000 | 18,999 | ||||||
0.09%, 10/31/14 | 12,000 | 11,999 | ||||||
0.06%, 11/12/14 | 35,000 | 34,998 | ||||||
0.06%, 11/19/14 | 25,820 | 25,818 | ||||||
0.02%, 11/21/14 | 75,000 | 74,997 | ||||||
0.06%, 12/3/14 | 65,000 | 64,993 | ||||||
0.07%, 12/10/14 | 205,000 | 204,972 | ||||||
0.03%, 12/24/14 | 17,050 | 17,049 | ||||||
0.09%, 1/5/15 | 8,000 | 7,998 | ||||||
0.10%, 1/7/15 | 8,000 | 7,998 | ||||||
0.10%, 1/14/15 | 100,000 | 99,971 | ||||||
0.06%, 3/27/15 | 15,000 | 14,996 | ||||||
FHLB FRN, | 25,000 | 25,000 | ||||||
0.12%, 10/10/14 (2) | 52,000 | 51,993 | ||||||
0.14%, 10/11/14 (2) | 22,000 | 21,997 | ||||||
0.11%, 10/13/14 (2) | 17,000 | 17,000 | ||||||
0.10%, 10/14/14 (2) | 16,000 | 16,000 | ||||||
0.11%, 10/16/14 (2) | 3,000 | 3,000 | ||||||
0.11%, 10/18/14 (2) | 8,000 | 8,000 | ||||||
0.10%, 10/19/14 (2) | 17,500 | 17,500 | ||||||
0.10%, 10/20/14 (2) | 20,000 | 19,997 | ||||||
0.12%, 10/21/14 (2) | 21,000 | 20,997 | ||||||
0.15%, 10/23/14 (2) | 7,000 | 7,000 | ||||||
0.12%, 10/24/14 (2) | 20,500 | 20,500 | ||||||
0.10%, 10/28/14 (2) | 17,000 | 17,000 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
U.S. GOVERNMENT AGENCIES – 80.3% (1) – continued | ||||||||
Federal Home Loan Bank – 56.3% – continued |
| |||||||
0.13%, 11/23/14 (2) | $29,000 | $29,000 | ||||||
1,904,968 | ||||||||
Total U.S. Government Agencies | ||||||||
(Cost $2,717,650) | 2,717,650 | |||||||
U.S. GOVERNMENT OBLIGATIONS – 1.7% | ||||||||
U.S. Treasury Bill – 0.6% | ||||||||
0.06%, 1/2/15 | 21,000 | 20,996 | ||||||
U.S. Treasury Floating Rate Notes – 1.1% |
| |||||||
0.06%, 10/1/14 (2) | 25,510 | 25,502 | ||||||
0.08%, 10/1/14 (2) | 4,000 | 4,000 | ||||||
0.09%, 10/1/14 (2) | 8,000 | 8,000 | ||||||
37,502 | ||||||||
Total U.S. Government Obligations | ||||||||
(Cost $58,498) | 58,498 | |||||||
Investments, at Amortized Cost | ||||||||
($2,776,148) | 2,776,148 | |||||||
REPURCHASE AGREEMENTS – 19.9% | ||||||||
Repurchase Agreements – 19.9% (3) | ||||||||
Bank of America N.A., dated 9/30/14, repurchase price $350,000 | 350,000 | 350,000 | ||||||
Citigroup Global Markets, Inc., dated 9/30/14, repurchase price $100,000 | 100,000 | 100,000 | ||||||
Credit Suisse Securities, dated 9/30/14, repurchase price $22,572 | 22,572 | 22,572 | ||||||
Mizuho Securities USA, Inc., dated 9/30/14, repurchase price $200,000 | 200,000 | 200,000 | ||||||
672,572 | ||||||||
Total Repurchase Agreements | ||||||||
(Cost $672,572) | 672,572 | |||||||
Total Investments – 101.9% | ||||||||
(Cost $3,448,720) (4) | 3,448,720 | |||||||
Liabilities less Other Assets – (1.9)% | (64,949 | ) | ||||||
NET ASSETS – 100.0% | $3,383,771 |
(1) | The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury. |
See Notes to the Financial Statements.
MONEY MARKET FUNDS | 48 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
(2) | Maturity date represents the next interest reset date. The security’s legal final maturity date is longer than the reset date. Securities with longer maturity dates have a greater sensitivity to changes in liquidity and/or credit risk. |
(3) | The nature and terms of the collateral received for the repurchase agreements are as follows: |
NAME | FAIR VALUE (000s) | COUPON RATES | MATURITY DATES | |||||||||
FHLB | $99,857 | 0.00% – 5.13% | 10/17/14 – 6/12/20 | |||||||||
FHLMC | $168,291 | 0.00% – 7.50% | 11/12/14 – 9/1/44 | |||||||||
FNMA | $294,811 | 0.00% – 6.63% | 11/12/14 – 6/1/44 | |||||||||
GNMA | $24,647 | 3.50% – 4.50% | 4/20/41 – 4/20/44 | |||||||||
TVA | $283 | 0.00% – 6.24% | 1/15/37 – 7/15/45 | |||||||||
U.S. Treasury Bills | $100 | 0.01% | 12/11/14 | |||||||||
U.S. Treasury Bonds | $103,000 | 1.54% – 2.42% | 11/15/18 – 2/15/32 | |||||||||
Total | $690,989 |
(4) | The cost for federal income tax purposes was $3,448,720. |
Percentages shown are based on Net Assets.
At September 30, 2014, the maturity analysis for the Fund as a percentage of investments was:
MATURITY ANALYSIS | % | |||
Overnight | 23.3% | |||
2 – 15 Days | 13.5 | |||
16 – 30 Days | 27.2 | |||
31 – 60 Days | 7.3 | |||
61 – 97 Days | 10.6 | |||
98 – 180 Days | 12.8 | |||
181 – 270 Days | 3.3 | |||
271 – 366 Days | 1.5 | |||
367 – 397 Days | 0.5 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments, which are carried at amortized cost, which approximates fair value, by the above fair value hierarchy as of September 30, 2014:
LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | |||||||||||||
Investments held by U.S. Government Select Money Market Fund | $– | $3,448,720 | (1) | $– | $3,448,720 |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
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EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULES OF INVESTMENTS | ||||||
BANS | Bond Anticipation Notes | IDA | Industrial Development Authority | |||
COPS | Certificates of Participation | IDB | Industrial Development Board | |||
CP | Commercial Paper | IDR | Industrial Development Revenue | |||
EDA | Economic Development Authority | LOC | Letter of Credit | |||
FFCB | Federal Farm Credit Bank | PCR | Pollution Control Revenue | |||
FHLB | Federal Home Loan Bank | PSF | Permanent School Fund | |||
FHLMC | Federal Home Loan Mortgage Corporation | SFM | Single Family Mortgage | |||
FNMA | Federal National Mortgage Association | TRANS | Tax and Revenue Anticipation Notes | |||
FRCD | Floating Rate Certificates of Deposit | VRDB | Variable Rate Demand Bonds | |||
FRN | Floating Rate Notes | VRDP | Variable Rate Demand Preferred | |||
GNMA | Government National Mortgage Association | |||||
G.O. | General Obligation | |||||
Gtd. | Guaranteed |
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 date represents the next interest reset date for floating rate securities. For all other securities, the date shown represents the date when principal payments must be paid, taking into account any call options exercised by the issuer and any permissible maturity shortening features other than interest rate resets.
Interest rates are reset daily and interest is payable monthly with respect to all joint repurchase agreements.
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MONEY MARKET FUNDS
NOTES TO THE FINANCIAL STATEMENTS
1. ORGANIZATION
Northern Funds (the “Trust”) is a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust offers 48 funds as of September 30, 2014, each with its own investment objective (e.g., long-term capital appreciation, total return or income consistent with preservation of capital). The California Municipal Money Market, Money Market, Municipal Money Market, U.S. Government Money Market, and U.S. Government Select Money Market Funds (each a “Fund” and collectively, the “Funds”) are separate investment portfolios of the Trust, each of which is a diversified portfolio except for the California Municipal Money Market Fund, which is a non-diversified portfolio of the Trust. Non-diversified portfolios may invest a relatively high percentage of their net assets in obligations of a limited number of issuers. Each of the Funds is presented herein.
Northern Trust Investments, Inc. (“NTI”), a subsidiary of The Northern Trust Company (“Northern Trust”), serves as the investment adviser for each of the Funds. Northern Trust serves as the custodian and transfer agent for the Trust. NTI serves as the Trust’s administrator. Northern Funds Distributors, LLC is the Trust’s distributor.
2. SIGNIFICANT ACCOUNTING POLICIES
The Trust, which is an investment company within the scope of Financial Accounting Standards Board (“FASB”) Accounting Standards Update 2013-08, follows accounting and reporting guidance under FASB Accounting Standards Codification Topic 946, “Financial Services-Investment Companies”.
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“U.S.”), or “U.S. GAAP.” The preparation of financial statements in conformity with U.S. 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 may differ from those estimates.
The net asset value (“NAV”) is calculated on each Business Day as of 1:00 p.m. Central Time for the Funds.
A) VALUATION OF SECURITIES The investments held by the Funds are valued at amortized cost, which NTI, as authorized by the Board of Trustees (the “Board”), has determined approximates fair value. Under this method, investments purchased at a discount or premium are valued by accreting or amortizing the difference between the original purchase price and maturity value of the issue over the period to effective maturity.
If NTI has determined that amortized cost does not approximate fair value, such securities are fair valued in accordance with policies and procedures established by, and subject to oversight of, the Funds’ Board. NTI has established a pricing and valuation committee (the “Asset Management PVC”) whose membership includes representatives of NTI, as well as independent control personnel from Northern Trust’s Legal and Fund Administration and NTI’s Compliance and Risk Management groups. The Asset Management PVC is responsible for the fair valuation of portfolio securities and the monitoring of the fair valuation process, subject to the Board’s oversight.
The Asset Management PVC is responsible for making the determination of the fair value of a security. In making its determination, the Asset Management PVC considers factors that it deems appropriate to the determination of the fair value of the security. Such factors include, but are not limited to, the type of security; the current financial position of the issuer; the cost of the investment; information as to any transactions or offers with respect to a security; market value of a similar freely-traded security; and news events. NTI will continue to monitor markets and the issuer’s circumstances that affect a security’s valuation to determine the continued appropriateness of a security’s fair valuation. The Asset Management PVC will review if the markets and issuer’s circumstances relevant to the valuation of a fair valued security change materially.
For each Level 3 security, if any, that has been fair valued pursuant to the policies adopted by the Board, the fair value price is compared against the last available and next available market quotations. The results of such back testing and fair valued securities are reported quarterly to the Valuation Committee of the Board.
B) CREDIT ENHANCEMENTS Certain investments owned by the Funds (primarily the California Municipal Money Market Fund and Municipal Money Market Fund) are covered by insurance issued by private insurers, are backed by an escrow or trust containing U.S. Government securities or U.S. Government agency securities, or are otherwise supported by letters of credit, standby purchase agreements or other liquidity facilities. Such enhancements may ensure the timely payment of the security’s principal and interest or may shorten the security’s maturity. However, such enhancements do not guarantee the market value of the securities or the value of a Fund’s shares. Additionally, there is no guarantee that an insurer will meet its obligations. For example, the insurers’ exposure to securities involving sub-prime mortgages may cause a municipal bond insurer’s rating to be downgraded or may cause the bond insurer to become insolvent,
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NOTES TO THE FINANCIAL STATEMENTS continued
which may affect the prices and liquidity of municipal obligations insured by the insurer.
C) REPURCHASE AGREEMENTS The Funds may enter into repurchase agreements under the terms of a master repurchase agreement by which the Funds purchase securities for cash from a seller and agree to resell those securities to the same seller at a specific price within a specified time or with an indefinite life and liquidity feature which allows the Funds to resell the securities quarterly. The interest rate on such repurchase agreements resets daily. During the term of a repurchase agreement, the fair value of the underlying collateral, including accrued interest, is required to equal or exceed the fair value of the repurchase agreement. The underlying collateral for tri-party repurchase agreements is held in accounts for Northern Trust, as agent of the Funds, at the Bank of New York or JPMorgan Chase which, in turn, holds securities through the book-entry system at the Federal Reserve Bank of New York. The underlying collateral for other repurchase agreements is held in a customer-only account for Northern Trust, as custodian for the Funds, at the Federal Reserve Bank of Chicago. The Funds are subject to credit risk on repurchase agreements to the extent that the counterparty fails to perform under the agreement and the value of the collateral received falls below the agreed repurchase price.
Pursuant to exemptive relief granted by the Securities and Exchange Commission (“SEC”), each Fund and other Funds of the Trust may enter into joint repurchase agreements with non-affiliated counterparties through a master repurchase agreement with Northern Trust. NTI administers and manages these joint repurchase agreements in accordance with and as part of its duties under its investment advisory agreements with the Funds and does not collect any additional fees from the Funds for such services. The Money Market Fund and U.S. Government Money Market Fund have entered into such joint repurchase agreements at September 30, 2014, as reflected in their accompanying Schedules of Investments.
The Funds may enter into transactions subject to enforceable netting agreements or other similar arrangements (“netting agreements”). Generally, netting agreements allow the Funds to offset any exposure to a specific counterparty with any collateral received or delivered to that counterparty based on the terms of the agreements. Generally, the Funds manage their cash collateral and securities collateral on a counterparty basis. As of September 30, 2014, the Funds have not invested in any portfolio securities other than the repurchase agreements described below, with gross exposures on the Statement of Assets and Liabilities, that could be netted subject to netting agreements.
The following tables present the repurchase agreements, which are subject to netting agreements, as well as the collateral delivered related to those repurchase agreements.
Amounts in thousands | GROSS AMOUNTS NOT OFFSET IN THE STATEMENTS OF ASSETS AND LIABILITIES | |||||||||||||
FUND NAME | COUNTERPARTY | GROSS AMOUNTS OF ASSETS PRESENTED IN STATEMENTS OF ASSETS AND LIABILITIES | FINANCIAL INSTRUMENTS | NET AMOUNT | ||||||||||
Money Market | Bank of America | $ | 22,303 | $ | (22,303 | ) | $ | — | ||||||
Morgan Stanley & Co. | 22,303 | (22,303 | ) | — | ||||||||||
Societe Generale | 22,302 | (22,302 | ) | — | ||||||||||
Citigroup | 37,496 | (37,496 | ) | — | ||||||||||
Federal Reserve | 393,000 | (393,000 | ) | — | ||||||||||
JPMorgan | 100,000 | (100,000 | ) | — | ||||||||||
Scotia Capital | 90,000 | (90,000 | ) | — | ||||||||||
SG Americas | 45,000 | (45,000 | ) | — | ||||||||||
Total | $ | 732,404 | $ | (732,404 | ) | $ | — | |||||||
U.S. Government Money Market | Bank of America | $ | 266,666 | $ | (266,666 | ) | $ | — | ||||||
Morgan Stanley & Co. | 16,667 | (16,667 | ) | — | ||||||||||
Societe Generale | 16,667 | (16,667 | ) | — | ||||||||||
Barclays | 50,000 | (50,000 | ) | — | ||||||||||
Citigroup | 115,712 | (115,712 | ) | — | ||||||||||
Total | $ | 465,712 | $ | (465,712 | ) | $ | — |
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SEPTEMBER 30, 2014 (UNAUDITED) |
Amounts in thousands | GROSS AMOUNTS NOT OFFSET IN THE STATEMENTS OF ASSETS AND LIABILITIES | |||||||||||||
FUND NAME | COUNTERPARTY | GROSS AMOUNTS OF ASSETS PRESENTED IN STATEMENTS OF ASSETS AND LIABILITIES | FINANCIAL INSTRUMENTS | NET AMOUNT | ||||||||||
U.S. Government Select Money Market | Bank of America | $ | 350,000 | $ | (350,000 | ) | $ | — | ||||||
Citigroup | 100,000 | (100,000 | ) | — | ||||||||||
Credit Suisse | 22,572 | (22,572 | ) | — | ||||||||||
Mizuho | 200,000 | (200,000 | ) | — | ||||||||||
Total | $ | 672,572 | $ | (672,572 | ) | $ | — |
D) INVESTMENT TRANSACTIONS AND INCOME Investment transactions are recorded as of the trade date. The Funds determine the gain or loss realized from investment transactions by using an identified cost basis method. Interest income, if any, is recognized on an accrual basis and includes amortization of premiums and accretion of discounts using the effective yield method. Certain Funds may receive dividend income from investment companies. Dividend income is recognized on the ex-dividend date. The California Municipal Money Market Fund’s and Municipal Money Market Fund’s income may be subject to certain state and local taxes and, depending on an individual shareholder’s tax status, the federal alternative minimum tax.
E) EXPENSES Each Fund is charged for those expenses that are directly attributable to that Fund. Expenses incurred which do not specifically relate to an individual Fund are allocated among all the Funds in the Trust in proportion to each Fund’s relative net assets.
F) DISTRIBUTIONS TO SHAREHOLDERS Distribution of dividends from net investment income are declared daily and paid monthly. Distributions of net realized capital gains, if any, are declared and paid 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 U.S. GAAP due to differences in the treatment and recognition of investment income and realized gains and losses. These differences are primarily related to the capital loss carryforwards. Inherent differences in the recognition of income and capital gains for federal income tax purposes, which are permanent, may result in periodic reclassifications in the Funds’ capital accounts. These reclassifications may relate to net operating losses and expired capital loss carryforwards. These reclassifications have no impact on the net assets or the NAVs of the Funds.
At March 31, 2014, the following reclassifications were recorded:
Amounts in thousands | UNDISTRIBUTED NET INVESTMENT INCOME | ACCUMULATED UNDISTRIBUTED NET REALIZED LOSSES | ||||||
Municipal Money Market | $ | 546 | $ | (546 | ) | |||
U.S. Government Money Market | 14 | (14 | ) | |||||
U.S. Government Select Money Market | 22 | (22 | ) |
G) FEDERAL INCOME TAXES No provision for federal income taxes has been made since each Fund’s policy is to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute, each year, substantially all of its taxable income and tax-exempt income to its shareholders.
The Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated the eight-year limit on the use of capital loss carryforwards that arise in taxable years beginning after its enactment date of December 22, 2010. The changes became effective for the Funds for the fiscal year ended March 31, 2012. Consequently, capital losses incurred by the Funds in taxable years beginning with the taxable year ended March 31, 2012 can be carried forward for an unlimited period. However, capital losses incurred by the Funds in taxable years beginning before the taxable year ended March 31, 2012 with an expiration date may not be used to offset capital gains until all net capital losses incurred in taxable years beginning with the taxable year ended March 31, 2012 without an expiration date have been utilized. As a result, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The Funds’ ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
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MONEY MARKET FUNDS
NOTES TO THE FINANCIAL STATEMENTS continued
At March 31, 2014, the capital loss carryforward for U.S. federal income tax purposes and the respective year of expiration was as follows:
Amount in thousands | MARCH 31, 2018 | |
Money Market | $8,566 |
The Fund in the above table may offset future capital gains with this capital loss carryforward.
Capital losses incurred that will be carried forward indefinitely under the provisions of the Act are as follows:
POST-ENACTMENT LOSSES
Amount in thousands | SHORT-TERM CAPITAL LOSS CARRYFORWARD | LONG-TERM CAPITAL LOSS CARRYFORWARD | ||
California Municipal Money Market | $9 | $ — |
The Fund in the above table may offset future capital gains with these capital loss carryforwards.
At March 31, 2014, the tax components of undistributed net investment income and realized gains, including amounts declared but not yet paid for federal income tax purposes, were as follows:
UNDISTRIBUTED | ||||||||
Amounts in thousands | TAX-EXEMPT INCOME | ORDINARY INCOME* | ||||||
California Municipal Money Market Fund | $2 | $ — | ||||||
Money Market Fund | — | 108 | ||||||
Municipal Money Market Fund | 107 | 150 | ||||||
U.S. Government Money Market Fund | — | 15 | ||||||
U.S. Government Select Money Market Fund | — | 43 |
* | Ordinary income includes taxable market discount income and short-term capital gains, if any. |
The tax character of distributions paid during the fiscal year ended March 31, 2014, was as follows:
DISTRIBUTION FROM | ||||||||
Amounts in thousands | TAX-EXEMPT INCOME | ORDINARY INCOME* | ||||||
California Municipal Money Market Fund | $40 | $ — | ||||||
Money Market Fund | — | 801 | ||||||
Municipal Money Market Fund | 611 | 550 | ||||||
U.S. Government Money Market Fund | — | 138 | ||||||
U.S. Government Select Money Market Fund | — | 354 |
* | Ordinary income includes taxable market discount income and short-term capital gains, if any. |
The tax character of distributions paid during the fiscal year ended March 31, 2013, was as follows:
DISTRIBUTIONS FROM | ||||||||
Amounts in thousands | TAX-EXEMPT INCOME | ORDINARY INCOME* | ||||||
California Municipal Money Market | $40 | $ — | ||||||
Money Market | — | 783 | ||||||
Municipal Money Market | 783 | 41 | ||||||
U.S. Government Money Market | — | 152 | ||||||
U.S. Government Select Money Market | — | 379 |
* | Ordinary income includes taxable market discount income and short-term capital gains, if any. |
As of March 31, 2014, no Fund had uncertain tax positions that would require financial statement recognition or disclosure. The Funds’ federal tax returns filed for the fiscal years ended March 31, 2011 through March 31, 2013 remain subject to examination by the Internal Revenue Service. Interest or penalties incurred, if any, on future unknown, uncertain tax positions taken by the Funds will be recorded as Interest expense on the Statements of Operations.
3. SERVICE PLAN
The Trust has adopted a Service Plan pursuant to which the Trust may enter into agreements with Northern Trust, its affiliates or other institutions (“Service Organizations”) under which the Service Organizations agree to provide certain administrative support services and, in some cases, personal and account maintenance services for their customers, who are beneficial owners of shares of the Funds. As compensation for services provided pursuant to the Service Plan, the Service Organizations receive a fee at an annual rate of up to 0.25 percent of the average daily net assets of the Funds beneficially owned by their customers. There were no shareholder servicing fees paid to Northern Trust or its affiliates during the six months ended September 30, 2014.
These expenses are included in the Statements of Operations under Shareholder servicing fees for the six months ended September 30, 2014.
4. BANK BORROWINGS
The Trust entered into a $150,000,000 senior unsecured revolving credit facility on November 25, 2013, which is administered by JPMorgan Chase Bank, N.A., for liquidity and other purposes (the “Credit Facility”). The interest rate charged under the Credit Facility is equal to the sum of (i) the Federal Funds Rate plus (ii) if the one month London Interbank Offered Rate (“LIBOR”) on the date of borrowing exceeds such Federal Funds Rate, the
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amount by which it so exceeds, plus (iii) 1.00 percent. In addition, there is an annual commitment fee of 0.07 percent on the unused portion of the credit line under the Credit Facility, payable quarterly in arrears, which is included in Other expenses on the Statements of Operations.
At a meeting held on November 20, 2014, the Board approved an agreement that terminated, replaced and restated the Credit Facility (as so terminated, replaced and restated, the “New Credit Facility”). The New Credit Facility is in the amount of $250,000,000. The interest rate charged under the New Credit Facility is the same as it was for the Credit Facility. In addition, there is an annual commitment fee of 0.08 percent on the unused portion of the credit line under the New Credit Facility, payable quarterly in arrears. The New Credit Facility is anticipated to go into effect on November 24, 2014 and will expire on November 23, 2015, unless renewed.
At September 30, 2014, the Funds did not have any outstanding borrowings.
The Funds did not have any borrowings or incur any interest expense for the six months ended September 30, 2014.
5. MANAGEMENT AND OTHER AGREEMENTS
Shareholders of each Fund have approved a new management agreement, effective June 30, 2014, between the Fund and NTI (the “Management Agreement”), to provide the Fund with investment advisory and administration services under a single agreement and fee structure. As compensation for advisory and administration services and the assumption of related expenses, NTI is entitled to a management fee, computed daily and payable monthly, at annual rates set forth in the first table below (expressed as a percentage of each Fund’s respective average daily net assets). Prior to June 30, 2014, as compensation for advisory services and the assumption of related expenses, NTI was entitled to an advisory fee, computed daily and payable monthly, at annual rates set forth in the second table below (expressed as a percentage of each Fund’s respective average daily net assets.) Prior to June 30, 2014, NTI, as administrator, was also entitled to an administration fee from the Funds at the annual rate of 0.10% of the average daily net assets of each Fund.
NTI has contractually agreed to reimburse a portion of the operating expenses of each Fund (other than acquired fund fees and expenses, the Fund’s proportionate share of the increase in compensation paid to each disinterested Trustee, expenses related to third-party consultants engaged by the Board of Trustees of the Trust, membership dues paid to the Investment Company Institute and Mutual Fund Directors Forum, and extraordinary expenses and interest) as shown on the accompanying Statements of Operations, to adhere to the expense limitations set forth below. The amount of the reimbursement is included in Less expenses reimbursed by investment adviser as a reduction to Total Expenses in the Statements of Operations.
At September 30, 2014, the annual management fees and contractual expense limitations for the Funds were based on the following annual rates as set forth in the table below.
CONTRACTUAL | ||||||||
ANNUAL MANAGEMENT FEE | EXPENSE LIMITATIONS | |||||||
California Municipal Money Market | 0.33 | % | 0.35 | % | ||||
Money Market | 0.33 | % | 0.35 | % | ||||
Municipal Money Market | 0.33 | % | 0.35 | % | ||||
U.S. Government Money Market | 0.33 | % | 0.35 | % | ||||
U.S. Government Select Money Market | 0.33 | % | 0.35 | % |
Prior to June 30, 2014, the annual advisory fees for the Funds were based on the following annual rates as set forth in the table below. There was no change to the contractual expense limitations described above.
CONTRACTUAL ANNUAL ADVISORY FEE | ||||
California Municipal Money Market | 0.25 | % | ||
Money Market | 0.25 | % | ||
Municipal Money Market | 0.25 | % | ||
U.S. Government Money Market | 0.25 | % | ||
U.S. Government Select Money Market | 0.25 | % |
The contractual reimbursement arrangements described above are expected to continue until at least July 31, 2015. The contractual reimbursement arrangements will continue automatically for periods of one year (each such one year period, a “Renewal Year”). The arrangement may be terminated, as to any succeeding Renewal Year, by NTI or a Fund upon 60 days’ written notice prior to the end of the current Renewal Year. The Board may terminate the contractual arrangements at any time with respect to a Fund if it determines that it is in the best interest of the Fund and its shareholders.
In addition, in order to avoid a negative yield, NTI may reimburse additional expenses or waive advisory fees of a Fund, as necessary. Any such expense reimbursement or waiver would be voluntary and could be implemented, increased or decreased or discontinued at any time. There is no guarantee that a Fund will be able to avoid a negative yield. During the six months ended September 30, 2014, NTI voluntarily reimbursed fees to
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NOTES TO THE FINANCIAL STATEMENTS continued
avoid a negative yield for the California Municipal Money Market Fund, Money Market Fund, Municipal Money Market Fund, U.S. Government Money Market Fund and U.S. Government Select Money Market Fund. The amounts voluntarily reimbursed by NTI are included in Less expenses voluntarily reimbursed by investment adviser in the Statements of Operations and the amounts outstanding at September 30, 2014, are included as part of Receivable from affiliates for expense reimbursements in the Statements of Assets and Liabilities. Any such reimbursement or waiver is paid monthly to the Funds by NTI.
Effective June 30, 2014, as compensation for services rendered as transfer agent, including the assumption by Northern Trust of the expenses related thereto, Northern Trust receives a fee, computed daily and payable monthly, at an annual rate of 0.015 percent of the average daily net assets outstanding for each of the Funds. Prior to June 30, 2014, Northern Trust received transfer agent fees at an annual rate of 0.10 percent of the average daily net assets was accrued daily and payable monthly. The transfer agent fees are reflected in the Funds’ Statements of Operations.
NTI has a sub-administration agreement with Northern Trust, pursuant to which Northern Trust performs certain administrative services for the Funds. NTI pays Northern Trust for its sub-administration services out of NTI’s management fees. Prior to June 30, 2014, these sub-administration services were paid out of NTI’s administration fees.
For compensation as custodian, Northern Trust receives an amount based on a pre-determined schedule of charges approved by the Board of Trustees. The Funds have entered into an expense off-set arrangement with the custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Funds’ custodian expenses. Custodian credits are reflected as Less custodian credits in the Funds’ Statements of Operations.
Northern Funds Distributors, LLC, the distributor for the Funds, received no compensation from the Funds under its distribution agreement. However, it received compensation from NTI for its services as distributor pursuant to a separate letter agreement between it and NTI.
Certain officers of the Trust are also officers of Northern Trust and NTI. All officers serve without compensation from the Funds. The Trust provided a deferred compensation plan for its Trustees who are not officers of Northern Trust or NTI. Prior to August 22, 2013, under the deferred compensation plan, Trustees may have elected to defer all or a portion of their compensation. Effective August 22, 2013, the Trustees may no longer defer their compensation. Any amounts deferred and invested under the plan shall remain invested pursuant to the terms of the plan. Each Trustee’s account shall be deemed to be invested in shares of the Diversified Assets Portfolio of Northern Institutional Funds and/or the Global Tactical Asset Allocation Fund of the Trust and/or at the discretion of the Trust, a money market fund selected by the Trust that complies with the provisions of Rule 2a-7 under the 1940 Act or one or more short-term fixed income instruments selected by the Trust that are “eligible securities” as defined by that rule. The net investment income, gains and losses achieved by such deemed investment shall be credited to the Trustee’s account as provided in the plan.
6. CAPITAL SHARE TRANSACTIONS
Transactions in capital shares for the six months ended September 30, 2014, were as follows:
Amounts in thousands* | PROCEEDS FROM SHARES SOLD | REINVESTMENT OF DIVIDENDS | PAYMENTS FOR SHARES REDEEMED | NET INCREASE (DECREASE) IN NET ASSETS | ||||||||||||
California Municipal Money Market | $1,011,420 | $6 | $(1,037,352) | $(25,926 | ) | |||||||||||
Money Market | 11,738,400 | 147 | (12,214,249 | ) | (475,702 | ) | ||||||||||
Municipal Money Market | 10,833,261 | 52 | (11,626,114 | ) | (792,801 | ) | ||||||||||
U.S. Government Money Market | 3,007,734 | 22 | (2,860,670 | ) | 147,086 | |||||||||||
U.S. Government Select Money Market | 5,400,292 | 41 | (5,743,596 | ) | (343,263 | ) |
* | The number of shares sold, reinvested and redeemed approximates the dollar amount of transactions. |
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Transactions in capital shares for the fiscal year ended March 31, 2014, were as follows:
Amounts in thousands* | PROCEEDS FROM SHARES SOLD | REINVESTMENT OF DIVIDENDS | PAYMENTS FOR SHARES REDEEMED | NET INCREASE (DECREASE) IN NET ASSETS | ||||||||||||
California Municipal Money Market | $1,844,469 | $12 | $(1,760,594 | ) | $83,887 | |||||||||||
Money Market | 25,091,806 | 307 | (25,689,953 | ) | (597,840 | ) | ||||||||||
Municipal Money Market | 23,540,016 | 201 | (23,769,959 | ) | (229,742 | ) | ||||||||||
U.S. Government Money Market | 6,519,992 | 42 | (6,465,931 | ) | 54,103 | |||||||||||
U.S. Government Select Money Market | 12,865,165 | 83 | (12,675,828 | ) | 189,420 |
* | The number of shares sold, reinvested and redeemed approximates the dollar amount of transactions. |
7. CAPITAL SUPPORT AGREEMENT
Effective February 21, 2008, and subsequently amended on July 15, 2008, September 29, 2008 and February 24, 2009, Northern Trust Corporation (the “Corporation”) entered into a Capital Support Agreement (“CSA”) with the Trust on behalf of the Money Market Fund (the “Fund”).
Although it was not obligated to do so, the Corporation entered into the CSA in order to provide stability to the Fund and investors in the Fund. The Corporation did not receive any consideration from the Fund. Under the CSA, the Corporation committed to provide capital to the Fund in the event that the Fund realized a loss on the Whistlejacket Capital LLC security (the “Security”), in an amount sufficient for the Fund to
maintain its NAV per share at no less than the minimum permissible NAV, which is $0.9990. The Fund was required to promptly sell the Security upon the earlier of (i) any change in the Corporation’s short term credit ratings such that the Corporation’s obligations no longer qualified as First Tier Securities under Rule 2a-7, or (ii) on the business day immediately prior to November 6, 2009. In addition, the Board had the right, at its option, to cause the Fund to sell the Security at any time if it determined that the maximum amount under the CSA, reduced by any capital contributions previously made under the CSA to the Fund, was insufficient to maintain the minimum permissible NAV of $0.9990.
On June 25, 2009, the Fund sold the remaining position in the Security held in the Fund, realizing a loss on the sale. Pursuant to the CSA, the Corporation made an actual capital contribution payment to the Fund representing the amount necessary to prevent the loss from causing the market-based NAV of the Fund to fall below $0.999, meeting its contractual obligation under the CSA. On June 25, 2009, upon the sale of the Security, the CSA terminated.
8. INDEMNIFICATIONS AND WARRANTIES
In the ordinary course of their business, the Funds may enter into contracts or agreements that contain indemnifications or warranties. Future events could occur that lead to the execution of these provisions against the Funds. The maximum exposure to the Funds under these provisions is unknown, as this would involve future claims that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and believe the risk of loss to be remote.
9. OTHER MATTERS
Money Market Funds Reform – On July 23, 2014, the SEC voted to amend the rules under the 1940 Act which currently govern the operations of the Funds. A significant change resulting from these amendments is a requirement that institutional prime money market funds, including institutional municipal money market funds, transact fund shares based on a market-based NAV (i.e., these funds will be required to float their NAVs). Government and retail money market funds (as defined in the amendments) may continue to transact fund shares at a NAV calculated using the amortized cost valuation method. Among additional disclosure, reporting and other requirements, the amendments also will permit a money market fund, or, in certain circumstances, require a money market fund (other than a government money market fund) to impose liquidity fees on redemptions, and permit a money market fund to limit (or gate) redemptions for up to 10 business days in any 90-day period. The amendments have staggered compliance dates. Compliance with a majority of these amendments will be required on October 14, 2016, two years after the effective date of the amendments. The degree to which a money market fund will be impacted by the rule amendments will depend upon the type of fund and type of investors (retail or institutional). At this time, management is evaluating the implications of these amendments and their impact on the Funds’ operations, financial statements and accompanying notes.
NORTHERN FUNDS SEMIANNUAL REPORT | 57 | MONEY MARKET FUNDS |
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MONEY MARKET FUNDS
NOTES TO THE FINANCIAL STATEMENTS continued | SEPTEMBER 30, 2014 (UNAUDITED) |
10. SUBSEQUENT EVENTS
Management has evaluated subsequent events for the Funds through the date the financial statements were issued, and has concluded that there are no recognized or non-recognized subsequent events relevant for financial statement disclosure.
MONEY MARKET FUNDS | 58 | NORTHERN FUNDS SEMIANNUAL REPORT |
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MONEY MARKET FUNDS
SEPTEMBER 30, 2014 (UNAUDITED) |
As a shareholder of the Funds, you incur ongoing costs, including advisory fees and other fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, April 1, 2014 through September 30, 2014.
ACTUAL EXPENSES
The first line of the tables below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid 4/1/14 - 9/30/14” to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the tables below provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5 percent per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5 percent hypothetical example with the 5 percent hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not incur any transaction costs, such as sales charges (loads), redemption fees, or exchange fees, but shareholders of other funds may incur such costs. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
CALIFORNIA MUNICIPAL MONEY MARKET
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/14 | ENDING ACCOUNT VALUE 9/30/14 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.06 | % | $ | 1,000.00 | $ | 1,000.10 | $ | 0.30 | ||||||||
Hypothetical** | 0.06 | % | $ | 1,000.00 | $ | 1,024.77 | $ | 0.30 |
MONEY MARKET
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/14 | ENDING ACCOUNT VALUE 9/30/14 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.16 | % | $ | 1,000.00 | $ | 1,000.10 | $ | 0.80 | ||||||||
Hypothetical** | 0.16 | % | $ | 1,000.00 | $ | 1,024.27 | $ | 0.81 |
MUNICIPAL MONEY MARKET
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/14 | ENDING ACCOUNT VALUE 9/30/14 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.08 | % | $ | 1,000.00 | $ | 1,000.10 | $ | 0.40 | ||||||||
Hypothetical** | 0.08 | % | $ | 1,000.00 | $ | 1,024.67 | $ | 0.41 |
U.S. GOVERNMENT MONEY MARKET
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/14 | ENDING ACCOUNT VALUE 9/30/14 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.08 | % | $ | 1,000.00 | $ | 1,000.10 | $ | 0.40 | ||||||||
Hypothetical** | 0.08 | % | $ | 1,000.00 | $ | 1,024.67 | $ | 0.41 |
U.S. GOVERNMENT SELECT MONEY MARKET
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/14 | ENDING ACCOUNT VALUE 9/30/14 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.08 | % | $ | 1,000.00 | $ | 1,000.10 | $ | 0.40 | ||||||||
Hypothetical** | 0.08 | % | $ | 1,000.00 | $ | 1,024.67 | $ | 0.41 |
* | Expenses are calculated using the Funds’ annualized expense ratios, which represent ongoing expenses as a percentage of net assets for the six months ended September 30, 2014. Expenses are calculated by multiplying the annualized expense ratio by the average account value over the period; then multiplying the result by the number of days in the most recent fiscal half year (183); and then dividing that result by the number of days in the current fiscal year (365). |
** | Hypothetical expenses are based on the Funds’ actual annualized expense ratios and an assumed rate of return of 5 percent per year before expenses. |
NORTHERN FUNDS SEMIANNUAL REPORT | 59 | MONEY MARKET FUNDS |
Table of Contents
MONEY MARKET FUNDS
PORTFOLIO HOLDINGS
Northern Funds files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s Web site at sec.gov. You may also review and obtain copies at the SEC’s Public Reference Room in Washington, D.C. Information about the Public Reference Room may be obtained by calling 800-SEC-0330.
PROXY VOTING
Northern Funds’ Proxy Voting Policies and Procedures and each Fund’s portfolio securities voting record for the 12-month period ended June 30 are available upon request and without charge by visiting Northern Funds’ Web site at northernfunds.com or the SEC’s Web site at sec.gov or by calling the Northern Funds Center at 800-595-9111.
MONEY MARKET FUNDS | 60 | NORTHERN FUNDS SEMIANNUAL REPORT |
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MULTI-MANAGER FUNDS
2 | ||||
4 | ||||
6 | ||||
8 | ||||
17 | ||||
17 | ||||
25 | ||||
28 | ||||
32 | ||||
40 | ||||
44 | ||||
49 | ||||
54 | ||||
64 | ||||
84 | ||||
98 | ||||
100 | ||||
104 |
The 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.
The recent volatility in the stock market has produced short-term returns that are not typical and may not continue in the future. Because of ongoing market volatility, Northern Funds’ performance may be subject to substantial short-term changes.
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 forward-looking 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.
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 SEMIANNUAL REPORT | 1 | MULTI-MANAGER FUNDS |
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MULTI-MANAGER FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
Amounts in thousands, except per share data | MULTI-MANAGER EMERGING MARKETS EQUITY FUND | MULTI-MANAGER GLOBAL LISTED INFRASTRUCTURE FUND | MULTI-MANAGER GLOBAL REAL ESTATE FUND | |||||||||
ASSETS: | ||||||||||||
Investments, at cost (1) | $1,688,456 | $1,317,330 | $763,287 | |||||||||
Investments, at value (2) | $1,935,497 | $1,420,058 | $848,871 | |||||||||
Foreign currencies, at value (cost $7,582, $46, $1,629, $1,011, respectively) | 7,541 | – | 47 | |||||||||
Dividend income receivable | 1,383 | 3,181 | 2,321 | |||||||||
Interest income receivable | – | – | – | |||||||||
Receivable for foreign tax reclaimable | 460 | 768 | 960 | |||||||||
Receivable for securities sold | 1,131 | 2,725 | 4,345 | |||||||||
Receivable for variation margin on futures contracts | – | – | – | |||||||||
Receivable for fund shares sold | 387 | 1,649 | 85 | |||||||||
Receivable from investment adviser | 21 | 2 | 11 | |||||||||
Unrealized gain on forward foreign currency exchange contracts | – | – | – | |||||||||
Prepaid and other assets | 31 | 9 | 3 | |||||||||
Total Assets | 1,946,451 | 1,428,392 | 856,643 | |||||||||
LIABILITIES: | ||||||||||||
Cash overdraft | – | – | – | |||||||||
Unrealized loss on forward foreign currency exchange contracts | – | – | – | |||||||||
Payable for securities purchased | 4,157 | – | 3,157 | |||||||||
Payable for when-issued securities | – | – | – | |||||||||
Payable for variation margin on futures contracts | – | 7 | – | |||||||||
Payable for fund shares redeemed | 631 | 196 | 611 | |||||||||
Payable to affiliates: | ||||||||||||
Management fees (Note 5) | 416 | 209 | 148 | |||||||||
Custody and accounting fees | 33 | 24 | 16 | |||||||||
Shareholder servicing fees | 6 | – | 7 | |||||||||
Transfer agent fees | 5 | 4 | 2 | |||||||||
Trustee fees | 12 | 4 | 4 | |||||||||
Accrued other liabilities | 52 | 19 | 41 | |||||||||
Total Liabilities | 5,312 | 463 | 3,986 | |||||||||
Net Assets | $1,941,139 | $1,427,929 | $852,657 | |||||||||
ANALYSIS OF NET ASSETS: | ||||||||||||
Capital stock | $1,726,504 | $1,275,173 | $689,914 | |||||||||
Accumulated undistributed net investment income (loss) | 10,649 | 5,078 | 3,040 | |||||||||
Accumulated undistributed net realized gain (loss) | (42,967 | ) | 45,144 | 74,186 | ||||||||
Net unrealized appreciation (depreciation) | 246,953 | 102,534 | 85,517 | |||||||||
Net Assets | $1,941,139 | $1,427,929 | $852,657 | |||||||||
Shares Outstanding ($.0001 par value, unlimited authorization) | 100,382 | 108,538 | 50,585 | |||||||||
Net Asset Value, Redemption and Offering Price Per Share | $19.34 | $13.16 | $16.86 |
(1) | Amounts include cost from the Diversified Assets Portfolio of the Northern Institutional Funds of $45,983, $18,326, $38,286, $67,415, $22,221, $27,529, $12,142, $11,843 and $43,268, respectively. |
(2) | Amounts include value from the Diversified Assets Portfolio of the Northern Institutional Funds of $45,983, $18,326, $38,286, $67,415, $22,221, $27,529, $12,142, $11,843 and $43,268, respectively. |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 2 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SEPTEMBER 30, 2014 (UNAUDITED) |
MULTI-MANAGER INTERNATIONAL EQUITY FUND | MULTI-MANAGER LARGE CAP FUND | MULTI-MANAGER MID CAP FUND | MULTI-MANAGER SMALL CAP FUND | MULTI-MANAGER EMERGING MARKETS DEBT OPPORTUNITY FUND | MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND | |||||||||||||||||
$2,224,457 | $433,749 | $684,411 | $272,464 | $131,639 | $612,618 | |||||||||||||||||
$2,527,953 | $603,912 | $872,446 | $332,278 | $128,124 | $614,220 | |||||||||||||||||
1,622 | – | – | – | 996 | – | |||||||||||||||||
4,929 | 668 | 896 | 192 | – | 21 | |||||||||||||||||
– | – | – | – | 1,839 | 9,295 | |||||||||||||||||
5,681 | – | – | – | 25 | – | |||||||||||||||||
35,483 | 4,684 | 1,903 | 375 | 8,921 | 1,727 | |||||||||||||||||
59 | – | – | – | – | 25 | |||||||||||||||||
155 | 9 | 68 | 9 | 346 | 2,166 | |||||||||||||||||
19 | 3 | 6 | 3 | 6 | 11 | |||||||||||||||||
– | – | – | – | – | 118 | |||||||||||||||||
23 | 10 | 13 | 14 | 4 | 14 | |||||||||||||||||
2,575,924 | 609,286 | 875,332 | 332,871 | 140,261 | 627,597 | |||||||||||||||||
– | – | – | – | 59 | – | |||||||||||||||||
– | – | – | – | – | 57 | |||||||||||||||||
18,695 | 1,506 | 1,292 | 2,395 | 7,515 | 3,978 | |||||||||||||||||
– | – | – | – | – | 5,391 | |||||||||||||||||
– | 3 | 74 | 43 | – | – | |||||||||||||||||
2,721 | 3,277 | 790 | 379 | 300 | 592 | |||||||||||||||||
479 | 88 | 142 | 60 | 18 | 85 | |||||||||||||||||
42 | 10 | 12 | 14 | 4 | 12 | |||||||||||||||||
6 | 1 | 26 | 1 | – | 16 | |||||||||||||||||
6 | 2 | 2 | 1 | – | 1 | |||||||||||||||||
13 | 4 | 8 | 4 | 4 | 4 | |||||||||||||||||
69 | 24 | 33 | 28 | 26 | 24 | |||||||||||||||||
22,031 | 4,915 | 2,379 | 2,925 | 7,926 | 10,160 | |||||||||||||||||
$2,553,893 | $604,371 | $872,953 | $329,946 | $132,335 | $617,437 | |||||||||||||||||
$2,398,690 | $355,356 | $557,191 | $215,497 | $134,439 | $604,382 | |||||||||||||||||
39,110 | 206 | 2,325 | (592 | ) | 136 | (377 | ) | |||||||||||||||
(187,046 | ) | 78,679 | 125,676 | 55,328 | 1,333 | 11,710 | ||||||||||||||||
303,139 | 170,130 | 187,761 | 59,713 | (3,573 | ) | 1,722 | ||||||||||||||||
$2,553,893 | $604,371 | $872,953 | $329,946 | $132,335 | $617,437 | |||||||||||||||||
237,796 | 58,292 | 62,672 | 29,984 | 13,322 | 58,892 | |||||||||||||||||
$10.74 | $10.37 | $13.93 | $11.00 | $9.93 | $10.48 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 3 | MULTI-MANAGER FUNDS |
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MULTI-MANAGER FUNDS
STATEMENTS OF OPERATIONS
Amounts in thousands | MULTI- | MULTI- MANAGER | ||||||
INVESTMENT INCOME: | ||||||||
Dividend income | $30,749 | (1)(2) | $24,117 | (1)(2) | ||||
Interest income | – | – | ||||||
Total Investment Income | 30,749 | 24,117 | ||||||
EXPENSES: | ||||||||
Management fees (Note 5) | 6,793 | 3,245 | ||||||
Investment advisory fees (Note 5) | 5,867 | 2,460 | ||||||
Administration fees (Note 5) | 757 | 467 | ||||||
Custody fees | 950 | 625 | ||||||
Accounting fees | 55 | 36 | ||||||
Transfer agent fees | 584 | 366 | ||||||
Registration fees | 17 | 15 | ||||||
Printing fees | 23 | 8 | ||||||
Professional fees | 28 | 17 | ||||||
Shareholder servicing fees | 64 | 1 | ||||||
Trustee fees | 28 | 10 | ||||||
Interest expense | – | – | ||||||
Other | 34 | 5 | ||||||
Total Expenses | 15,200 | 7,255 | ||||||
Less expenses reimbursed by investment adviser | (1,204 | ) | (502 | ) | ||||
Net Expenses | 13,996 | 6,753 | ||||||
Net Investment Income (Loss) | 16,753 | 17,364 | ||||||
NET REALIZED AND UNREALIZED GAINS (LOSSES): | ||||||||
Net realized gains (losses) on: | ||||||||
Investments | 11,308 | 28,362 | ||||||
Futures contracts | – | 287 | ||||||
Foreign currency transactions | (438 | ) | (99 | ) | ||||
Net change in unrealized appreciation (depreciation) on: | ||||||||
Investments | 14,290 | (3,545 | ) | |||||
Futures contracts | – | (189 | ) | |||||
Foreign currency translations | (59 | ) | (88 | ) | ||||
Net Gains (Losses) | 25,101 | 24,728 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $41,854 | $42,092 |
(1) | Amounts include dividend income from the Diversified Assets Portfolio of the Northern Institutional Funds of $2, $2, $2, $4, $1, $1, $1 and $2, respectively. |
(2) | Net of $3,761, $1,958, $762, $5,062, $57, $3, $2, $30 and $6 respectively in non-reclaimable foreign withholding taxes. |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 4 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SIX MONTHS ENDED SEPTEMBER 30, 2014 (UNAUDITED) |
MULTI- MANAGER GLOBAL REAL ESTATE FUND | MULTI- MANAGER INTERNATIONAL EQUITY FUND | MULTI- MANAGER LARGE CAP FUND | MULTI- MANAGER MID CAP FUND | MULTI- MANAGER SMALL CAP FUND | MULTI- MANAGER EMERGING MARKETS DEBT OPPORTUNITY FUND | MULTI- MANAGER HIGH YIELD OPPORTUNITY FUND | ||||||||||||||||||||
$15,249 | (1)(2) | $47,522 | (1)(2) | $5,392 | (1)(2) | $6,182 | (1)(2) | $1,793 | (1)(2) | $– | $250 | (1) | ||||||||||||||
– | 1 | – | – | – | 3,424 | (2) | 20,210 | (2) | ||||||||||||||||||
15,249 | 47,523 | 5,392 | 6,182 | 1,793 | 3,424 | 20,460 | ||||||||||||||||||||
2,449 | 7,981 | 1,405 | 2,294 | 978 | 277 | 1,420 | ||||||||||||||||||||
2,478 | 7,425 | 1,412 | 2,077 | 1,013 | 209 | 1,442 | ||||||||||||||||||||
338 | 1,069 | 235 | 346 | 138 | 42 | 270 | ||||||||||||||||||||
430 | 1,301 | 54 | 93 | 55 | 72 | 330 | ||||||||||||||||||||
27 | 76 | 20 | 28 | 14 | 8 | 23 | ||||||||||||||||||||
260 | 820 | 181 | 266 | 106 | 33 | 205 | ||||||||||||||||||||
13 | 18 | 13 | 14 | 13 | 13 | 20 | ||||||||||||||||||||
12 | 24 | 10 | 10 | 9 | 7 | 10 | ||||||||||||||||||||
17 | 28 | 17 | 17 | 17 | 17 | 17 | ||||||||||||||||||||
24 | 27 | 8 | 88 | 4 | – | 36 | ||||||||||||||||||||
10 | 28 | 10 | 10 | 10 | 10 | 10 | ||||||||||||||||||||
– | – | – | – | – | – | 3 | ||||||||||||||||||||
10 | 36 | 6 | 6 | 5 | 4 | 6 | ||||||||||||||||||||
6,068 | 18,833 | 3,371 | 5,249 | 2,362 | 692 | 3,792 | ||||||||||||||||||||
(1,019 | ) | (1,695 | ) | (519 | ) | (597 | ) | (349 | ) | (125 | ) | (661 | ) | |||||||||||||
5,049 | 17,138 | 2,852 | 4,652 | 2,013 | 567 | 3,131 | ||||||||||||||||||||
10,200 | 30,385 | 2,540 | 1,530 | (220 | ) | 2,857 | 17,329 | |||||||||||||||||||
79,282 | 77,451 | 35,419 | 48,877 | 26,315 | 1,590 | 10,892 | ||||||||||||||||||||
– | 380 | 345 | 629 | (232 | ) | – | (523 | ) | ||||||||||||||||||
115 | (291 | ) | – | – | – | (27 | ) | 65 | ||||||||||||||||||
(78,953 | ) | (143,707 | ) | (7,373 | ) | (51,245 | ) | (42,091 | ) | (5,032 | ) | (24,661 | ) | |||||||||||||
– | (570 | ) | (67 | ) | (404 | ) | (89 | ) | – | 110 | ||||||||||||||||
(88 | ) | (516 | ) | – | – | – | (108 | ) | 55 | |||||||||||||||||
356 | (67,253 | ) | 28,324 | (2,143 | ) | (16,097 | ) | (3,577 | ) | (14,062 | ) | |||||||||||||||
$10,556 | $(36,868 | ) | $30,864 | $(613 | ) | $(16,317 | ) | $(720 | ) | $3,267 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 5 | MULTI-MANAGER FUNDS |
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MULTI-MANAGER FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
MULTI-MANAGER EMERGING MARKETS EQUITY FUND | MULTI-MANAGER FUND | MULTI-MANAGER FUND | MULTI-MANAGER INTERNATIONAL EQUITY FUND | |||||||||||||||||||||||||||||
Amounts in thousands | SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | ||||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | $16,753 | $21,852 | $17,364 | $12,009 | $10,200 | $14,735 | $30,385 | $33,475 | ||||||||||||||||||||||||
Net realized gains (losses) | 10,870 | 13,550 | 28,550 | 23,155 | 79,397 | 74,016 | 77,540 | 80,380 | ||||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) | 14,231 | (11,068 | ) | (3,822 | ) | 89,001 | (79,041 | ) | (83,871 | ) | (144,793 | ) | 170,375 | |||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 41,854 | 24,334 | 42,092 | 124,165 | 10,556 | 4,880 | (36,868 | ) | 284,230 | |||||||||||||||||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||||||||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | (107,367 | ) | (257,476 | ) | 270,279 | 709,435 | (48,742 | ) | (133,360 | ) | (262,777 | ) | 396,064 | |||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions | (107,367 | ) | (257,476 | ) | 270,279 | 709,435 | (48,742 | ) | (133,360 | ) | (262,777 | ) | 396,064 | |||||||||||||||||||
DISTRIBUTIONS PAID: | ||||||||||||||||||||||||||||||||
From net investment income | – | (24,600 | ) | (13,620 | ) | (9,767 | ) | (6,241 | ) | (24,850 | ) | – | (32,100 | ) | ||||||||||||||||||
From net realized gains | – | – | – | (10,389 | ) | – | (92,459 | ) | – | – | ||||||||||||||||||||||
Total Distributions Paid | – | (24,600 | ) | (13,620 | ) | (20,156 | ) | (6,241 | ) | (117,309 | ) | – | (32,100 | ) | ||||||||||||||||||
Total Increase (Decrease) in Net Assets | (65,513 | ) | (257,742 | ) | 298,751 | 813,444 | (44,427 | ) | (245,789 | ) | (299,645 | ) | 648,194 | |||||||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||||||||||
Beginning of period | 2,006,652 | 2,264,394 | 1,129,178 | 315,734 | 897,084 | 1,142,873 | 2,853,538 | 2,205,344 | ||||||||||||||||||||||||
End of period | $1,941,139 | $2,006,652 | $1,427,929 | $1,129,178 | $852,657 | $897,084 | $2,553,893 | $2,853,538 | ||||||||||||||||||||||||
Accumulated Undistributed Net Investment Income (Loss) | $10,649 | $(6,104 | ) | $5,078 | $1,334 | $3,040 | $(919 | ) | $39,110 | $8,725 |
(1) | Commenced investment operations on December 3, 2013. |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 6 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2014 (UNAUDITED) OR THE FISCAL YEAR ENDED MARCH 31, 2014 |
MULTI-MANAGER LARGE CAP FUND | MULTI-MANAGER MID CAP FUND | MULTI-MANAGER SMALL CAP FUND | MULTI-MANAGER EMERGING MARKETS DEBT OPPORTUNITY FUND(1) | MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND | ||||||||||||||||||||||||||||||||||
SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | SEPT. 30, 2014 | MARCH 31, 2014 | |||||||||||||||||||||||||||||
$2,540 | $5,650 | $1,530 | $3,420 | $(220 | ) | $(1,493 | ) | $2,857 | $1,105 | $17,329 | $37,192 | |||||||||||||||||||||||||||
35,764 | 119,234 | 49,506 | 148,945 | 26,083 | 81,571 | 1,563 | (348 | ) | 10,434 | 16,645 | ||||||||||||||||||||||||||||
(7,440 | ) | 26,019 | (51,649 | ) | 37,434 | (42,180 | ) | 14,743 | (5,140 | ) | 1,567 | (24,496 | ) | (12,535 | ) | |||||||||||||||||||||||
30,864 | 150,903 | (613 | ) | 189,799 | (16,317 | ) | 94,821 | (720 | ) | 2,324 | 3,267 | 41,302 | ||||||||||||||||||||||||||
(74,805 | ) | (249,800 | ) | (78,444 | ) | (30,015 | ) | (43,525 | ) | (89,465 | ) | 33,877 | 100,564 | (96,496 | ) | (19,838 | ) | |||||||||||||||||||||
(74,805 | ) | (249,800 | ) | (78,444 | ) | (30,015 | ) | (43,525 | ) | (89,465 | ) | 33,877 | 100,564 | (96,496 | ) | (19,838 | ) | |||||||||||||||||||||
(2,552 | ) | (5,527 | ) | – | (4,000 | ) | – | – | (2,996 | ) | (714 | ) | (17,784 | ) | (38,400 | ) | ||||||||||||||||||||||
– | (86,105 | ) | – | (144,295 | ) | – | (61,571 | ) | – | – | – | (23,682 | ) | |||||||||||||||||||||||||
(2,552 | ) | (91,632 | ) | – | (148,295 | ) | – | (61,571 | ) | (2,996 | ) | (714 | ) | (17,784 | ) | (62,082 | ) | |||||||||||||||||||||
(46,493 | ) | (190,529 | ) | (79,057 | ) | 11,489 | (59,842 | ) | (56,215 | ) | 30,161 | 102,174 | (111,013 | ) | (40,618 | ) | ||||||||||||||||||||||
650,864 | 841,393 | 952,010 | 940,521 | 389,788 | 446,003 | 102,174 | – | 728,450 | 769,068 | |||||||||||||||||||||||||||||
$604,371 | $650,864 | $872,953 | $952,010 | $329,946 | $389,788 | $132,335 | $102,174 | $617,437 | $728,450 | |||||||||||||||||||||||||||||
$206 | $218 | $2,325 | $795 | $(592 | ) | $(372 | ) | $136 | $275 | $(377 | ) | $78 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 7 | MULTI-MANAGER FUNDS |
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MULTI-MANAGER FUNDS
FINANCIAL HIGHLIGHTS
MULTI-MANAGER EMERGING MARKETS EQUITY FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS ENDED SEPT. 30, 2014 (UNAUDITED) | YEAR ENDED MARCH 31, 2014 | YEAR ENDED MARCH 31, 2013 | YEAR ENDED MARCH 31, 2012 | YEAR ENDED MARCH 31, 2011 | YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $18.98 | $18.92 | $18.67 | $23.13 | $20.85 | $12.03 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.16 | 0.18 | 0.15 | 0.22 | 0.10 | 0.05 | ||||||||||||||||||
Net realized and unrealized gains (losses) | 0.20 | 0.09 | 0.33 | (2.07 | ) | 4.20 | 9.49 | |||||||||||||||||
Total from Investment Operations | 0.36 | 0.27 | 0.48 | (1.85 | ) | 4.30 | 9.54 | |||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income(1) | – | (0.21 | ) | (0.23 | ) | (0.21 | ) | (0.16 | ) | (0.09 | ) | |||||||||||||
From net realized gains | – | – | – | (2.40 | ) | (1.86 | ) | (0.63 | ) | |||||||||||||||
Total Distributions Paid | – | (0.21 | ) | (0.23 | ) | (2.61 | ) | (2.02 | ) | (0.72 | ) | |||||||||||||
Net Asset Value, End of Period | $19.34 | $18.98 | $18.92 | $18.67 | $23.13 | $20.85 | ||||||||||||||||||
Total Return(2) | 1.90 | % | 1.45 | % | 2.56 | % | (5.86 | )% | 20.88 | % | 79.65 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $1,941,139 | $2,006,652 | $2,264,394 | $1,818,621 | $2,470,359 | $1,896,421 | ||||||||||||||||||
Ratio to average net assets of:(3) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 1.35 | %(4) | 1.33 | %(4) | 1.35 | %(4)(5) | 1.44 | %(4) | 1.45 | %(4) | 1.48 | % | ||||||||||||
Expenses, before reimbursements and credits | 1.47 | % | 1.53 | % | 1.53 | % | 1.52 | % | 1.52 | % | 1.55 | % | ||||||||||||
Net investment income, net of reimbursements and credits | 1.62 | %(4) | 1.00 | %(4) | 0.87 | %(4)(5) | 1.01 | %(4) | 0.42 | %(4) | 0.25 | % | ||||||||||||
Net investment income, before reimbursements and credits | 1.50 | % | 0.80 | % | 0.69 | % | 0.93 | % | 0.35 | % | 0.18 | % | ||||||||||||
Portfolio Turnover Rate | 17.58 | % | 54.90 | % | 35.44 | % | 46.58 | % | 76.35 | % | 115.05 | % |
(1) | Distributions to shareholders from net investment income include amounts relating to foreign currency transactions which are treated as ordinary income for federal income tax purposes. |
(2) | 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. Total return is not annualized for periods less than one year. |
(3) | Annualized for periods less than one year. |
(4) | 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 $7,000, $44,000, $81,000, $48,000 and $149,000, which represent less than 0.005, less than 0.005, less than 0.005, less than 0.005 and 0.01 percent of average net assets for the six months ended September 30, 2014 and fiscal years ended March 31, 2014, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
(5) | Effective January 1, 2013, the investment advisers agreed to increase the expense reimbursements they provide to the Fund by contractually limiting the Fund’s total expenses to 1.35%. Prior to January 1, 2013, the expense limitation had been 1.40%. |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 8 | NORTHERN FUNDS SEMIANNUAL REPORT |
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MULTI-MANAGER GLOBAL LISTED INFRASTRUCTURE FUND | ||||||||||||
Selected per share data | SIX MONTHS ENDED SEPT. 30, 2014 (UNAUDITED) | YEAR ENDED MARCH 31, 2014 | PERIOD ENDED MARCH 31, 2013(1) | |||||||||
Net Asset Value, Beginning of Period | $12.81 | $10.86 | $10.00 | |||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||
Net investment income | 0.16 | 0.23 | 0.11 | |||||||||
Net realized and unrealized gains | 0.32 | 2.12 | 0.85 | |||||||||
Total from Investment Operations | 0.48 | 2.35 | 0.96 | |||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||
From net investment income(2) | (0.13 | ) | (0.21 | ) | (0.10 | ) | ||||||
From net realized gains | – | (0.19 | ) | – | ||||||||
Total Distributions Paid | (0.13 | ) | (0.40 | ) | (0.10 | ) | ||||||
Net Asset Value, End of Period | $13.16 | $12.81 | $10.86 | |||||||||
Total Return(3) | 3.75 | % | 22.15 | % | 9.67 | % | ||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||
Net assets, in thousands, end of period | $1,427,929 | $1,129,178 | $315,734 | |||||||||
Ratio to average net assets of:(4) | ||||||||||||
Expenses, net of reimbursements and credits | 1.00 | %(5) | 1.00 | %(5) | 0.99 | %(5) | ||||||
Expenses, before reimbursements and credits | 1.07 | % | 1.18 | % | 1.27 | % | ||||||
Net investment income, net of reimbursements and credits | 2.57 | %(5) | 2.10 | %(5) | 1.99 | %(5)(6) | ||||||
Net investment income, before reimbursements and credits | 2.50 | % | 1.92 | % | 1.71 | %(6) | ||||||
Portfolio Turnover Rate | 16.18 | % | 52.90 | % | 50.68 | % |
(1) | Commenced investment operations on September 18, 2012. |
(2) | Distributions to shareholders from net investment income include amounts relating to foreign currency transactions which are treated as ordinary income for federal income tax purposes. |
(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. Total return is not annualized for periods less than one year. |
(4) | Annualized for periods less than one year. |
(5) | 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 $6,000, $15,000 and $10,000, which represent less than 0.005, less than 0.005 and 0.01 percent of average net assets for the six months ended September 30, 2014, the fiscal year ended March 31, 2014 and the period from September 18, 2012 (commencement of operations) to March 31, 2013, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
(6) | As the Fund commenced investment operations on September 18, 2012, annualized net investment income ratios may not be reflective of amounts that an investor should expect on an annual basis prospectively. |
See Notes to the Financial Statements.
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MULTI-MANAGER FUNDS
FINANCIAL HIGHLIGHTS continued
MULTI-MANAGER GLOBAL REAL ESTATE FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS ENDED SEPT. 30, 2014 (UNAUDITED) | YEAR ENDED MARCH 31, 2014 | YEAR ENDED MARCH 31, 2013 | YEAR ENDED MARCH 31, 2012 | YEAR ENDED MARCH 31, 2011 | YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $16.81 | $19.02 | $17.29 | $18.20 | $17.08 | $9.87 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.20 | 0.23 | 0.23 | 0.21 | 0.17 | 0.23 | ||||||||||||||||||
Net realized and unrealized gains (losses) | (0.03 | ) | (0.17 | ) | 2.73 | 0.09 | 2.56 | 7.66 | ||||||||||||||||
Total from Investment Operations | 0.17 | 0.06 | 2.96 | 0.30 | 2.73 | 7.89 | ||||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income(1) | (0.12 | ) | (0.44 | ) | (0.39 | ) | (0.26 | ) | (0.23 | ) | (0.22 | ) | ||||||||||||
From net realized gains | – | (1.83 | ) | (0.84 | ) | (0.95 | ) | (1.38 | ) | (0.46 | ) | |||||||||||||
Total Distributions Paid | (0.12 | ) | (2.27 | ) | (1.23 | ) | (1.21 | ) | (1.61 | ) | (0.68 | ) | ||||||||||||
Net Asset Value, End of Period | $16.86 | $16.81 | $19.02 | $17.29 | $18.20 | $17.08 | ||||||||||||||||||
Total Return(2) | 1.01 | % | 0.96 | % | 17.62 | % | 2.66 | % | 16.59 | % | 80.53 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $852,657 | $897,084 | $1,142,873 | $764,154 | $820,472 | $633,800 | ||||||||||||||||||
Ratio to average net assets of:(3) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 1.10 | %(4) | 1.10 | %(4) | 1.16 | %(4)(5) | 1.27 | %(4) | 1.29 | %(4) | 1.30 | % | ||||||||||||
Expenses, before reimbursements and credits | 1.32 | % | 1.48 | % | 1.46 | % | 1.47 | % | 1.47 | % | 1.48 | % | ||||||||||||
Net investment income, net of reimbursements and credits | 2.22 | %(4) | 1.47 | %(4) | 1.24 | %(4)(5) | 1.20 | %(4) | 0.95 | %(4) | 1.53 | % | ||||||||||||
Net investment income, before reimbursements and credits | 2.00 | % | 1.09 | % | 0.94 | % | 1.00 | % | 0.77 | % | 1.35 | % | ||||||||||||
Portfolio Turnover Rate | 100.30 | % | 48.54 | % | 63.98 | % | 64.16 | % | 54.79 | % | 71.54 | % |
(1) | Distributions to shareholders from net investment income include amounts relating to foreign currency transactions which are treated as ordinary income for federal income tax purposes. |
(2) | 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. Total return is not annualized for periods less than one year. |
(3) | Annualized for periods less than one year. |
(4) | 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 $4,000, $22,000, $49,000, $22,000 and $77,000, which represent less than 0.005, less than 0.005, less than 0.005, less than 0.005 and 0.01 percent of average net assets for the six months ended September 30, 2014 and fiscal years ended March 31, 2014, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
(5) | Effective January 1, 2013, the investment advisers agreed to increase the expense reimbursements they provide to the Fund by contractually limiting the Fund’s total expenses to 1.10%. Prior to January 1, 2013, the expense limitation had been 1.20%. |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 10 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
MULTI-MANAGER INTERNATIONAL EQUITY FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS 2014 | YEAR ENDED MARCH 31, 2014 | YEAR ENDED MARCH 31, 2013 | YEAR ENDED MARCH 31, 2012 | YEAR ENDED MARCH 31, 2011 | YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $10.92 | $9.88 | $9.25 | $10.17 | $9.19 | $6.28 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.13 | 0.12 | 0.16 | 0.16 | 0.07 | 0.03 | ||||||||||||||||||
Net realized and unrealized gains (losses) | (0.31 | ) | 1.04 | 0.65 | (0.92 | ) | 0.98 | 2.93 | ||||||||||||||||
Total from Investment Operations | (0.18 | ) | 1.16 | 0.81 | (0.76 | ) | 1.05 | 2.96 | ||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income(1) | – | (0.12 | ) | (0.18 | ) | (0.16 | ) | (0.07 | ) | (0.05 | ) | |||||||||||||
From net realized gains | – | – | – | – | – | – | ||||||||||||||||||
Total Distributions Paid | – | (0.12 | ) | (0.18 | ) | (0.16 | ) | (0.07 | ) | (0.05 | ) | |||||||||||||
Net Asset Value, End of Period | $10.74 | $10.92 | $9.88 | $9.25 | $10.17 | $9.19 | ||||||||||||||||||
Total Return(2) | (1.65 | )% | 11.70 | % | 8.92 | % | (7.24 | )% | 11.49 | % | 47.16 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $2,553,893 | $2,853,538 | $2,205,344 | $2,242,204 | $3,451,805 | $2,902,773 | ||||||||||||||||||
Ratio to average net assets of:(3) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 1.20 | %(4) | 1.29 | %(4)(5) | 1.31 | %(4) | 1.37 | %(4) | 1.38 | %(4) | 1.41 | % | ||||||||||||
Expenses, before reimbursements and credits | 1.32 | % | 1.41 | % | 1.43 | % | 1.40 | % | 1.41 | % | 1.42 | % | ||||||||||||
Net investment income, net of reimbursements and credits | 2.13 | %(4) | 1.31 | %(4)(5) | 1.59 | %(4) | 1.44 | %(4) | 0.74 | %(4) | 0.71 | % | ||||||||||||
Net investment income, before reimbursements and credits | 2.01 | % | 1.19 | % | 1.47 | % | 1.41 | % | 0.71 | % | 0.70 | % | ||||||||||||
Portfolio Turnover Rate | 17.54 | % | 39.36 | % | 53.03 | % | 70.80 | % | 123.93 | % | 59.84 | % |
(1) | Distributions to shareholders from net investment income include amounts relating to foreign currency transactions which are treated as ordinary income for federal income tax purposes. |
(2) | 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. Total return is not annualized for periods less than one year. |
(3) | Annualized for periods less than one year. |
(4) | 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 $13,000, $66,000, $114,000, $92,000 and $374,000, which represent less than 0.005, less than 0.005, 0.01, less than 0.005 and 0.01 percent of average net assets for the six months ended September 30, 2014 and for the fiscal years ended March 31, 2014, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
(5) | Effective January 1, 2014, the investment adviser agreed to increase the expense reimbursements it provides to the Fund by contractually limiting the Fund’s total expenses to 1.20%. Prior to January 1, 2014, the expense limitation had been 1.35%. |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 11 | MULTI-MANAGER FUNDS |
Table of Contents
MULTI-MANAGER FUNDS
FINANCIAL HIGHLIGHTS continued
MULTI-MANAGER LARGE CAP FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS SEPT. 30, | YEAR ENDED MARCH 31, 2014 | YEAR ENDED MARCH 31, 2013 | YEAR ENDED MARCH 31, 2012 | YEAR ENDED MARCH 31, 2011 | YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $9.92 | $9.32 | $9.85 | $9.56 | $8.19 | $5.68 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.04 | 0.08 | 0.08 | 0.05 | 0.04 | 0.06 | ||||||||||||||||||
Net realized and unrealized gains | 0.45 | 1.96 | 0.68 | 0.56 | 1.38 | 2.50 | ||||||||||||||||||
Total from Investment Operations | 0.49 | 2.04 | 0.76 | 0.61 | 1.42 | 2.56 | ||||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income | (0.04 | ) | (0.08 | ) | (0.09 | ) | (0.05 | ) | (0.05 | ) | (0.05 | ) | ||||||||||||
From net realized gains | – | (1.36 | ) | (1.20 | ) | (0.27 | ) | – | – | |||||||||||||||
Total Distributions Paid | (0.04 | ) | (1.44 | ) | (1.29 | ) | (0.32 | ) | (0.05 | ) | (0.05 | ) | ||||||||||||
Net Asset Value, End of Period | $10.37 | $9.92 | $9.32 | $9.85 | $9.56 | $8.19 | ||||||||||||||||||
Total Return(1) | 4.96 | % | 22.41 | % | 8.77 | % | 6.96 | % | 17.36 | % | 45.25 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $604,371 | $650,864 | $841,393 | $1,125,715 | $1,048,810 | $710,622 | ||||||||||||||||||
Ratio to average net assets of:(2) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 0.90 | %(3) | 1.05 | %(3)(4) | 1.10 | %(3) | 1.16 | %(3) | 1.19 | %(3) | 1.20 | % | ||||||||||||
Expenses, before reimbursements and credits | 1.07 | % | 1.20 | % | 1.19 | % | 1.19 | % | 1.20 | % | 1.20 | % | ||||||||||||
Net investment income, net of reimbursements and credits | 0.80 | %(3) | 0.77 | %(3)(4) | 0.85 | %(3) | 0.59 | %(3) | 0.52 | %(3) | 0.81 | % | ||||||||||||
Net investment income, before reimbursements and credits | 0.63 | % | 0.62 | % | 0.76 | % | 0.56 | % | 0.51 | % | 0.81 | % | ||||||||||||
Portfolio Turnover Rate | 8.87 | % | 43.20 | % | 57.95 | % | 39.43 | % | 69.02 | % | 48.85 | % |
(1) | 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. Total return is not annualized for periods less than one year. |
(2) | Annualized for periods less than one year. |
(3) | 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 $2,000, $15,000, $36,000, $43,000 and $99,000, which represents less than 0.005, less than 0.005, less than 0.005, less than 0.005 and 0.01 percent of average net assets for the six months ended September 30, 2014 and the fiscal years ended March 31, 2014, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased by a corresponding amount. |
(4) | Effective January 1, 2014, the investment adviser agreed to increase the expense reimbursements it provides to the Fund by contractually limiting the Fund’s total expenses to 0.90%. Prior to January 1, 2014, the expense limitation had been 1.10%. |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 12 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
MULTI-MANAGER MID CAP FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS SEPT. 30, | YEAR ENDED MARCH 31, 2014 | YEAR ENDED MARCH 31, 2013 | YEAR ENDED MARCH 31, 2012 | YEAR ENDED MARCH 31, 2011 | YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $13.96 | $13.44 | $12.40 | $12.59 | $10.14 | $6.26 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.03 | 0.05 | 0.10 | 0.03 | – | (1) | 0.02 | |||||||||||||||||
Net realized and unrealized gains (losses) | (0.06 | ) | 2.78 | 1.55 | 0.14 | 2.46 | 3.88 | |||||||||||||||||
Total from Investment Operations | (0.03 | ) | 2.83 | 1.65 | 0.17 | 2.46 | 3.90 | |||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income | – | (0.06 | ) | (0.10 | ) | (0.01 | ) | (0.01 | ) | (0.02 | ) | |||||||||||||
From net realized gains | – | (2.25 | ) | (0.51 | ) | (0.35 | ) | – | – | |||||||||||||||
Total Distributions Paid | – | (2.31 | ) | (0.61 | ) | (0.36 | ) | (0.01 | ) | (0.02 | ) | |||||||||||||
Net Asset Value, End of Period | $13.93 | $13.96 | $13.44 | $12.40 | $12.59 | $10.14 | ||||||||||||||||||
Total Return(2) | (0.22 | )% | 21.79 | % | 13.90 | % | 1.93 | % | 24.28 | % | 62.34 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $872,953 | $952,010 | $940,521 | $1,059,880 | $1,138,398 | $587,664 | ||||||||||||||||||
Ratio to average net assets of:(3) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 1.00 | %(4) | 1.00 | %(4) | 1.07 | %(4)(5) | 1.17 | %(4) | 1.19 | %(4) | 1.20 | % | ||||||||||||
Expenses, before reimbursements and credits | 1.13 | % | 1.21 | % | 1.21 | % | 1.20 | % | 1.20 | % | 1.20 | % | ||||||||||||
Net investment income (loss), net of reimbursements and credits | 0.33 | %(4) | 0.35 | %(4) | 0.73 | %(4)(5) | 0.25 | %(4) | (0.01 | )%(4) | 0.22 | % | ||||||||||||
Net investment income (loss), before reimbursements and credits | 0.20 | % | 0.14 | % | 0.59 | % | 0.22 | % | (0.02 | )% | 0.22 | % | ||||||||||||
Portfolio Turnover Rate | 27.54 | % | 72.72 | % | 67.67 | % | 54.53 | % | 62.29 | % | 103.02 | % |
(1) | Per share amount from net investment loss was less than $0.01 per share. |
(2) | 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. Total return is not annualized for periods less than one year. |
(3) | Annualized for periods less than one year. |
(4) | The net expenses and net investment income (loss) 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 $3,000, $20,000, $32,000, $25,000 and $68,000, which represent less than 0.005, less than 0.005, less than 0.005, less than 0.005 and 0.01 percent of average net assets for the six months ended September 30, 2014 and for the fiscal years ended March 31, 2014, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses and net investment loss increased by a corresponding amount. |
(5) | Effective January 1, 2013, the investment advisers agreed to increase the expense reimbursements they provide to the Fund by contractually limiting the Fund’s total expenses to 1.00%. Prior to January 1, 2013, the expense limitation had been 1.10%. |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 13 | MULTI-MANAGER FUNDS |
Table of Contents
MULTI-MANAGER FUNDS
FINANCIAL HIGHLIGHTS continued
MULTI-MANAGER SMALL CAP FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS SEPT. 30, | YEAR ENDED MARCH 31, 2014 | YEAR ENDED MARCH 31, 2013 | YEAR ENDED MARCH 31, 2012 | YEAR ENDED MARCH 31, 2011 | YEAR ENDED MARCH 31, 2010 | ||||||||||||||||||
Net Asset Value, Beginning of Period | $11.53 | $10.89 | $9.82 | $11.12 | $8.85 | $5.53 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income (loss) | (0.01 | ) | (0.05 | ) | 0.01 | – | (1) | (0.05 | ) | (0.03 | ) | |||||||||||||
Net realized and unrealized gains (losses) | (0.52 | ) | 2.71 | 1.33 | (0.33 | ) | 2.32 | 3.35 | ||||||||||||||||
Total from Investment Operations | (0.53 | ) | 2.66 | 1.34 | (0.33 | ) | 2.27 | 3.32 | ||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income | – | – | (0.08 | ) | – | – | – | |||||||||||||||||
From net realized gains | – | (2.02 | ) | (0.19 | ) | (0.97 | ) | – | – | |||||||||||||||
Total Distributions Paid | – | (2.02 | ) | (0.27 | ) | (0.97 | ) | – | – | |||||||||||||||
Net Asset Value, End of Period | $11.00 | $11.53 | $10.89 | $9.82 | $11.12 | $8.85 | ||||||||||||||||||
Total Return(2) | (4.60 | )% | 25.17 | % | 14.01 | % | (1.53 | )% | 25.79 | % | 59.86 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $329,946 | $389,788 | $446,003 | $485,975 | $591,747 | $442,610 | ||||||||||||||||||
Ratio to average net assets of:(3) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 1.10 | %(4) | 1.25 | %(4)(5) | 1.30 | %(4) | 1.37 | %(4) | 1.39 | %(4) | 1.40 | % | ||||||||||||
Expenses, before reimbursements and credits | 1.29 | % | 1.43 | % | 1.41 | % | 1.41 | % | 1.41 | % | 1.41 | % | ||||||||||||
Net investment income (loss), net of reimbursements and credits | (0.12 | )%(4) | (0.36 | )%(4)(5) | 0.14 | %(4) | (0.05 | )%(4) | (0.47 | )%(4) | (0.44 | )% | ||||||||||||
Net investment income (loss), before reimbursements and credits | (0.31 | )% | (0.54 | )% | 0.03 | % | (0.09 | )% | (0.49 | )% | (0.45 | )% | ||||||||||||
Portfolio Turnover Rate | 19.00 | % | 41.64 | % | 59.67 | % | 56.47 | % | 192.09 | % | 187.71 | % |
(1) | Per share amount from net investment loss was less than $0.01 per share. |
(2) | 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. Total return is not annualized for periods less than one year. |
(3) | Annualized for periods less than one year. |
(4) | The net expenses and net investment income (loss) 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 $2,000, $14,000, $24,000, $27,000 and $58,000, which represent less than 0.005, less than 0.005, 0.005, 0.005 and 0.01 percent of average net assets for the six months ended September 30, 2014 and the fiscal years ended March 31, 2014, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses and net investment loss increased by a corresponding amount. |
(5) | Effective January 1, 2014, the investment adviser agreed to increase the expense reimbursements it provides to the Fund by contractually limiting the Fund’s total expenses to 1.10%. Prior to January 1, 2014, the expense limitation had been 1.30%. |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 14 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
MULTI-MANAGER EMERGING MARKETS DEBT OPPORTUNITY FUND | ||||||||
Selected per share data | SIX MONTHS SEPT. 30, | PERIOD ENDED MARCH 31, 2014(1) | ||||||
Net Asset Value, Beginning of Period | $10.17 | $10.00 | ||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||
Net investment income | 0.23 | 0.12 | ||||||
Net realized and unrealized gains (losses) | (0.22 | ) | 0.13 | |||||
Total from Investment Operations | 0.01 | 0.25 | ||||||
LESS DISTRIBUTIONS PAID: | ||||||||
From net investment income(2) | (0.25 | ) | (0.08 | ) | ||||
Total Distributions Paid | (0.25 | ) | (0.08 | ) | ||||
Net Asset Value, End of Period | $9.93 | $10.17 | ||||||
Total Return(3) | 0.07 | % | 2.54 | % | ||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||
Net assets, in thousands, end of period | $132,335 | $102,174 | ||||||
Ratio to average net assets of:(4) | ||||||||
Expenses, net of reimbursements and credits | 0.94 | %(5) | 0.92 | %(5) | ||||
Expenses, before reimbursements and credits | 1.14 | % | 1.42 | % | ||||
Net investment income, net of reimbursements and credits | 4.72 | %(5) | 4.43 | %(5)(6) | ||||
Net investment income, before reimbursements and credits | 4.52 | % | 3.93 | %(6) | ||||
Portfolio Turnover Rate | 115.57 | % | 38.02 | % |
(1) | Commenced investment operations on December 3, 2013. |
(2) | Distributions to shareholders from net investment income include amounts relating to foreign currency transactions which are treated as ordinary income for federal income tax purposes. |
(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. Total return is not annualized for periods less than one year. |
(4) | Annualized for periods less than one year. |
(5) | 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 and $3,000, which represents less than 0.005 and 0.01 percent of average net assets for the six months ended September 30, 2014 and the period from December 3, 2013 (commencement of operations) to March 31, 2014, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
(6) | As the Fund commenced investment operations on December 3, 2013, annualized net investment income may not be reflective of amounts that an investor should expect on an annual basis prospectively. |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 15 | MULTI-MANAGER FUNDS |
Table of Contents
MULTI-MANAGER FUNDS
FINANCIAL HIGHLIGHTS continued
MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND | ||||||||||||||||||||||||
Selected per share data | SIX MONTHS SEPT. 30, | YEAR ENDED MARCH 31, 2014 | YEAR ENDED MARCH 31, 2013 | YEAR ENDED MARCH 31, 2012 | YEAR ENDED MARCH 31, 2011 | PERIOD ENDED MARCH 31, 2010(1) | ||||||||||||||||||
Net Asset Value, Beginning of Period | $10.72 | $11.00 | $10.44 | $10.98 | $10.41 | $10.00 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income | 0.27 | 0.56 | 0.65 | 0.68 | 0.68 | 0.29 | ||||||||||||||||||
Net realized and unrealized gains (losses) | (0.23 | ) | 0.10 | 0.65 | (0.29 | ) | 0.68 | 0.40 | ||||||||||||||||
Total from Investment Operations | 0.04 | 0.66 | 1.30 | 0.39 | 1.36 | 0.69 | ||||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||
From net investment income(2) | (0.28 | ) | (0.58 | ) | (0.65 | ) | (0.71 | ) | (0.68 | ) | (0.27 | ) | ||||||||||||
From net realized gains | – | (0.36 | ) | (0.09 | ) | (0.22 | )�� | (0.11 | ) | (0.01 | ) | |||||||||||||
Total Distributions Paid | (0.28 | ) | (0.94 | ) | (0.74 | ) | (0.93 | ) | (0.79 | ) | (0.28 | ) | ||||||||||||
Net Asset Value, End of Period | $10.48 | $10.72 | $11.00 | $10.44 | $10.98 | $10.41 | ||||||||||||||||||
Total Return(3) | 0.31 | % | 6.31 | % | 12.90 | % | 4.05 | % | 13.58 | % | 6.96 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||
Net assets, in thousands, end of period | $617,437 | $728,450 | $769,068 | $645,730 | $649,149 | $419,861 | ||||||||||||||||||
Ratio to average net assets of:(4) | ||||||||||||||||||||||||
Expenses, net of reimbursements and credits | 0.90 | %(5) | 0.90 | %(5) | 0.97 | %(5)(6) | 1.07 | %(5) | 1.08 | %(5) | 1.10 | % | ||||||||||||
Expenses, before reimbursements and credits | 1.09 | % | 1.19 | % | 1.18 | % | 1.17 | % | 1.18 | % | 1.21 | % | ||||||||||||
Net investment income, net of reimbursements and credits | 4.99 | %(5) | 5.21 | %(5) | 6.09 | %(5)(6) | 6.53 | %(5) | 6.46 | %(5) | 6.04 | %(7) | ||||||||||||
Net investment income, before reimbursements and credits | 4.80 | % | 4.92 | % | 5.88 | % | 6.43 | % | 6.36 | % | 5.93 | %(7) | ||||||||||||
Portfolio Turnover Rate | 24.79 | % | 68.10 | % | 96.04 | % | 80.61 | % | 43.11 | % | 20.46 | % |
(1) | Commenced investment operations on September 23, 2009. |
(2) | Distributions to shareholders from net investment income include amounts relating to foreign currency transactions which are treated as ordinary income for federal income tax purposes. |
(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. Total return is not annualized for periods less than one year. |
(4) | Annualized for periods less than one year. |
(5) | 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 $4,000, $28,000, $59,000, $27,000 and $88,000, which represent less than 0.005, less than 0.005, 0.01, less than 0.005 and 0.02 percent of average net assets for the six months ended September 30, 2014 and fiscal years ended March 31, 2014, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
(6) | Effective January 1, 2013, the investment advisers agreed to increase the expense reimbursements they provide to the Fund by contractually limiting the Fund’s total expenses to 0.90%. Prior to January 1, 2013, the expense limitation had been 1.00%. |
(7) | As the Fund commenced investment operations on September 23, 2009, annualized net investment income ratios may not be reflective of amounts that an investor should expect on an annual basis prospectively. |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 16 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER EMERGING MARKETS EQUITY FUND | SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.4% | ||||||||
Brazil – 6.5% | ||||||||
AMBEV S.A. ADR | 157,220 | $1,030 | ||||||
B2W Cia Digital * | 418,320 | 5,575 | ||||||
Banco do Brasil S.A. | 193,759 | 2,015 | ||||||
Banco Santander Brasil S.A. | 685,700 | 4,449 | ||||||
BB Seguridade Participacoes S.A. | 955,400 | 12,603 | ||||||
BRF S.A. ADR * | 224,300 | 5,336 | ||||||
CETIP S.A. - Mercados Organizados | 426,300 | 5,294 | ||||||
Cosan Ltd., Class A | 385,300 | 4,146 | ||||||
Cyrela Brazil Realty S.A. Empreendimentos e Participacoes | 347,000 | 1,751 | ||||||
EDP - Energias do Brasil S.A. | 130,900 | 531 | ||||||
Embraer S.A. ADR | 157,800 | 6,189 | ||||||
Fibria Celulose S.A. * | 1,653,600 | 18,152 | ||||||
JBS S.A. | 1,694,500 | 6,383 | ||||||
Klabin S.A. | 227,700 | 1,103 | ||||||
Kroton Educacional S.A. | 1,065,700 | 6,696 | ||||||
Light S.A. | 78,100 | 670 | ||||||
Localiza Rent a Car S.A. | 210,800 | 3,030 | ||||||
Mahle-Metal Leve S.A. Industria e Comercio | 23,500 | 208 | ||||||
Odontoprev S.A. | 1,162,300 | 4,207 | ||||||
Petroleo Brasileiro S.A. * | 103,186 | 733 | ||||||
Petroleo Brasileiro S.A. ADR * | 2,426,350 | 34,430 | ||||||
Porto Seguro S.A. | 42,600 | 496 | ||||||
Sao Martinho S.A. | 33,137 | 534 | ||||||
Sul America S.A. | 170,413 | 1,051 | ||||||
Vale S.A. | 55,703 | 613 | ||||||
127,225 | ||||||||
China – 10.9% | ||||||||
Agricultural Bank of China Ltd., Class H | 2,532,000 | 1,119 | ||||||
Alibaba Group Holding Ltd. ADR * | 14,170 | 1,259 | ||||||
ANTA Sports Products Ltd. | 1,059,000 | 2,158 | ||||||
Baidu, Inc. ADR * | 26,500 | 5,783 | ||||||
Bank of China Ltd., Class H | 7,328,106 | 3,288 | ||||||
Baoxin Auto Group Ltd. | 2,817,500 | 2,106 | ||||||
Central China Real Estate Ltd. | 1,530,883 | 360 | ||||||
China BlueChemical Ltd., Class H | 1,142,000 | 496 | ||||||
China Cinda Asset Management Co. Ltd., Class H * | 12,448,900 | 5,471 | ||||||
China Coal Energy Co. Ltd., Class H | 2,106,000 | 1,232 | ||||||
China Construction Bank Corp., Class H | 37,569,247 | 26,354 | ||||||
China Dongxiang Group Co. Ltd. | 9,998,000 | 1,882 | ||||||
China Life Insurance Co. Ltd., Class H | 2,826,000 | 7,845 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.4% – continued | ||||||||
China – 10.9% – continued | ||||||||
China Pacific Insurance Group Co. Ltd., Class H | 1,978,600 | $6,940 | ||||||
China Petroleum & Chemical Corp., Class H | 3,421,271 | 2,994 | ||||||
China Shenhua Energy Co. Ltd., Class H | 1,444,500 | 4,032 | ||||||
China Shineway Pharmaceutical Group Ltd. | 2,187,750 | 3,709 | ||||||
China Shipping Container Lines Co. Ltd., Class H * | 16,632,000 | 4,463 | ||||||
Chongqing Rural Commercial Bank, Class H | 1,715,446 | 776 | ||||||
CNOOC Ltd. | 3,164,342 | 5,446 | ||||||
CSR Corp. Ltd., Class H | 8,230,000 | 7,217 | ||||||
Datang International Power Generation Co. Ltd., Class H | 2,426,000 | 1,263 | ||||||
Dongfeng Motor Group Co. Ltd., Class H | 2,418,000 | 3,978 | ||||||
Evergrande Real Estate Group Ltd. | 693,000 | 260 | ||||||
GOME Electrical Appliances Holding Ltd. | 2,942,000 | 478 | ||||||
Guangzhou Automobile Group Co. Ltd., Class H | 17,977,421 | 17,319 | ||||||
Guangzhou R&F Properties Co. Ltd., Class H | 1,011,200 | 1,024 | ||||||
Hengan International Group Co. Ltd. | 450,500 | 4,432 | ||||||
Huadian Fuxin Energy Corp. Ltd., Class H | 4,300,000 | 2,521 | ||||||
Huaneng Power International, Inc., Class H | 1,802,000 | 1,963 | ||||||
Industrial & Commercial Bank of China Ltd., Class H | 16,953,937 | 10,580 | ||||||
JD.com, Inc. ADR * | 179,637 | 4,638 | ||||||
Jiangsu Expressway Co. Ltd., Class H | 850,000 | 897 | ||||||
KWG Property Holding Ltd. | 624,000 | 439 | ||||||
Lenovo Group Ltd. | 6,472,000 | 9,644 | ||||||
Luye Pharma Group Ltd. * | 3,911,952 | 5,004 | ||||||
PetroChina Co. Ltd., Class H | 7,402,024 | 9,494 | ||||||
Ping An Insurance Group Co. of China Ltd., Class H | 48,500 | 365 | ||||||
Shanghai Electric Group Co. Ltd., Class H | 2,434,000 | 1,295 | ||||||
Sinotrans Ltd., Class H | 1,770,000 | 1,284 | ||||||
SOHO China Ltd. | 1,268,442 | 916 | ||||||
Tencent Holdings Ltd. | 1,395,000 | 20,766 | ||||||
Tianhe Chemicals Group Ltd. (1)(2)* | 21,626,000 | 6,434 | ||||||
Trina Solar Ltd. ADR * | 495,800 | 5,984 | ||||||
Tsingtao Brewery Co. Ltd., Class H | 614,000 | 4,363 | ||||||
Zhejiang Expressway Co. Ltd., Class H | 868,000 | 882 | ||||||
211,153 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 17 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER EMERGING MARKETS EQUITY FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.4% – continued | ||||||||
Colombia – 0.0% | ||||||||
Grupo Argos S.A. | 18,134 | $203 | ||||||
Czech Republic – 1.0% | ||||||||
CEZ A.S. | 114,480 | 3,477 | ||||||
Komercni banka A.S. | 66,000 | 15,716 | ||||||
19,193 | ||||||||
Egypt – 1.4% | ||||||||
Commercial International Bank Egypt S.A.E. | 3,834,685 | 27,286 | ||||||
Greece – 0.4% | ||||||||
OPAP S.A. | 237,608 | 3,109 | ||||||
Piraeus Bank S.A. * | 2,325,349 | 3,929 | ||||||
7,038 | ||||||||
Hong Kong – 7.7% | ||||||||
AIA Group Ltd. | 1,498,000 | 7,731 | ||||||
ASM Pacific Technology Ltd. | 431,600 | 4,275 | ||||||
Beijing Enterprises Holdings Ltd. | 659,500 | 5,654 | ||||||
Brilliance China Automotive Holdings Ltd. | 1,952,000 | 3,411 | ||||||
Chaoda Modern Agriculture Holdings Ltd. (3)* | 5,742,000 | – | ||||||
China Agri-Industries Holdings Ltd. | 6,703,000 | 2,541 | ||||||
China Lumena New Materials Corp. | 5,884,000 | 947 | ||||||
China Mobile Ltd. | 4,633,585 | 54,391 | ||||||
China Overseas Land & Investment Ltd. | 1,656,000 | 4,242 | ||||||
China Power International Development Ltd. | 17,643,350 | 8,190 | ||||||
China Unicom Hong Kong Ltd. | 5,842,000 | 8,790 | ||||||
Dah Chong Hong Holdings Ltd. | 3,161,000 | 1,829 | ||||||
Far East Horizon Ltd. | 313,000 | 280 | ||||||
Galaxy Entertainment Group Ltd. | 1,055,000 | 6,101 | ||||||
GCL-Poly Energy Holdings Ltd. * | 26,673,000 | 9,798 | ||||||
Haier Electronics Group Co. Ltd. | 3,684,000 | 9,632 | ||||||
Kingboard Laminates Holdings Ltd. | 4,430,000 | 1,872 | ||||||
Nine Dragons Paper Holdings Ltd. | 2,713,000 | 1,956 | ||||||
Pacific Basin Shipping Ltd. | 10,186,600 | 5,493 | ||||||
Sands China Ltd. | 222,800 | 1,158 | ||||||
Shanghai Industrial Holdings Ltd. | 143,000 | 423 | ||||||
Stella International Holdings Ltd. | 1,285,000 | 3,331 | ||||||
Texwinca Holdings Ltd. | 4,091,000 | 3,510 | ||||||
WH Group Ltd. (1)(2)* | 4,076,000 | 3,349 | ||||||
148,904 | ||||||||
Hungary – 0.4% | ||||||||
Magyar Telekom Telecommunications | 1,907,349 | 2,807 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.4% – continued | ||||||||
Hungary – 0.4% – continued | ||||||||
OTP Bank PLC | 245,150 | $4,162 | ||||||
Richter Gedeon Nyrt. | 52,217 | 817 | ||||||
7,786 | ||||||||
India – 8.0% | ||||||||
Andhra Bank | 208,397 | 219 | ||||||
Bank of Baroda | 90,574 | 1,319 | ||||||
Bank of India | 247,566 | 925 | ||||||
Bharti Airtel Ltd. | 926,391 | 6,078 | ||||||
Cairn India Ltd. | 175,956 | 888 | ||||||
HCL Technologies Ltd. | 83,088 | 2,305 | ||||||
HDFC Bank Ltd. | 236,739 | 3,334 | ||||||
HDFC Bank Ltd. ADR | 92,900 | 4,327 | ||||||
Hindalco Industries Ltd. | 2,186,602 | 5,530 | ||||||
Housing Development Finance Corp. | 37,556 | 640 | ||||||
ICICI Bank Ltd. | 245,411 | 5,681 | ||||||
ICICI Bank Ltd. ADR | 134,629 | 6,610 | ||||||
Indiabulls Housing Finance Ltd. | 213,966 | 1,396 | ||||||
Infosys Ltd. ADR | 15,861 | 959 | ||||||
ITC Ltd. | 1,245,744 | 7,469 | ||||||
Oil India Ltd. | 44,069 | 434 | ||||||
Power Finance Corp. Ltd. | 355,684 | 1,346 | ||||||
Punjab National Bank | 67,125 | 961 | ||||||
Reliance Industries Ltd. | 587,868 | 8,974 | ||||||
Rural Electrification Corp. Ltd. | 348,637 | 1,406 | ||||||
Sesa Sterlite Ltd. | 257,563 | 1,132 | ||||||
Tata Consultancy Services Ltd. | 843,745 | 37,411 | ||||||
Tata Motors Ltd. | 302,403 | 2,463 | ||||||
Tata Motors Ltd. ADR | 209,800 | 9,170 | ||||||
Tata Steel Ltd. | 223,807 | 1,658 | ||||||
UCO Bank | 241,832 | 311 | ||||||
Ultratech Cement Ltd. | 98,349 | 4,190 | ||||||
UPL Ltd. | 339,578 | 1,866 | ||||||
Vijaya Bank | 293,709 | 228 | ||||||
Wipro Ltd. | 3,119,325 | 30,143 | ||||||
Zee Entertainment Enterprises Ltd. | 1,129,316 | 5,726 | ||||||
155,099 | ||||||||
Indonesia – 1.5% | ||||||||
Adaro Energy Tbk PT | 7,733,200 | 746 | ||||||
Bank Rakyat Indonesia Persero Tbk PT | 14,654,400 | 12,452 | ||||||
Indocement Tunggal Prakarsa Tbk PT | 294,200 | 521 | ||||||
Indofood CBP Sukses Makmur Tbk PT | 6,797,800 | 6,309 | ||||||
Indofood Sukses Makmur Tbk PT | 6,553,400 | 3,755 | ||||||
Matahari Department Store Tbk PT | 1,847,700 | 2,461 |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 18 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.4% – continued | ||||||||
Indonesia – 1.5% – continued | ||||||||
Telekomunikasi Indonesia Persero Tbk PT | 11,084,515 | $2,655 | ||||||
United Tractors Tbk PT | 699,800 | 1,143 | ||||||
30,042 | ||||||||
Malaysia – 0.4% | ||||||||
British American Tobacco Malaysia Bhd. | 34,992 | 752 | ||||||
DiGi.Com Bhd. | 97,598 | 174 | ||||||
Genting Malaysia Bhd. | 3,546,800 | 4,519 | ||||||
Hong Leong Financial Group Bhd. | 84,140 | 451 | ||||||
Lafarge Malaysia Bhd. | 122,348 | 384 | ||||||
Telekom Malaysia Bhd. | 162,687 | 327 | ||||||
UMW Holdings Bhd. | 205,200 | 767 | ||||||
7,374 | ||||||||
Mexico – 6.7% | ||||||||
America Movil S.A.B. de C.V. ADR, Series L | 1,191,314 | 30,021 | ||||||
America Movil S.A.B. de C.V., Series L | 1,517,891 | 1,913 | ||||||
Cemex S.A.B. de C.V. ADR (Participation Certificate) * | 1,500,284 | 19,564 | ||||||
Coca-Cola Femsa S.A.B. de C.V. ADR | 6,866 | 691 | ||||||
Compartamos S.A.B. de C.V. | 383,900 | 822 | ||||||
Controladora Comercial Mexicana S.A.B.de C.V., Series UBC | 203,900 | 764 | ||||||
Fomento Economico Mexicano S.A.B. de C.V. ADR | 5,026 | 463 | ||||||
Gruma S.A.B. de C.V., Series B * | 155,949 | 1,670 | ||||||
Grupo Bimbo S.A.B. de C.V., Series A | 3,026,000 | 8,773 | ||||||
Grupo Financiero Banorte S.A.B. de C.V., Series O | 2,020,850 | 12,942 | ||||||
Grupo Mexico S.A.B. de C.V., Series B | 1,816,300 | 6,103 | ||||||
Grupo Televisa S.A.B. ADR | 1,339,933 | 45,397 | ||||||
Industrias Bachoco S.A.B. de C.V. ADR | 7,711 | 461 | ||||||
129,584 | ||||||||
Peru – 0.4% | ||||||||
Credicorp Ltd. | 47,000 | 7,209 | ||||||
Philippines – 1.0% | ||||||||
Alliance Global Group, Inc. | 795,500 | 460 | ||||||
Metropolitan Bank & Trust Co. | 3,513,249 | 6,787 | ||||||
SM Investments Corp. | 248,791 | 4,450 | ||||||
Universal Robina Corp. | 1,772,010 | 7,389 | ||||||
19,086 | ||||||||
Poland – 0.9% | ||||||||
Asseco Poland S.A. | 15,076 | 212 | ||||||
Cyfrowy Polsat S.A. | 646,114 | 5,396 | ||||||
Energa S.A. | 115,439 | 837 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.4% – continued | ||||||||
Poland – 0.9% – continued | ||||||||
KGHM Polska Miedz S.A. | 52,744 | $2,015 | ||||||
PGE S.A. | 172,851 | 1,093 | ||||||
Powszechna Kasa Oszczednosci Bank Polski S.A. | 581,071 | 6,940 | ||||||
Tauron Polska Energia S.A. | 649,897 | 1,052 | ||||||
17,545 | ||||||||
Qatar – 0.3% | ||||||||
Barwa Real Estate Co. | 133,161 | 1,464 | ||||||
Commercial Bank of Qatar (The) QSC | 6,524 | 126 | ||||||
Doha Bank QSC * | 14,186 | 225 | ||||||
Industries Qatar QSC | 67,260 | 3,436 | ||||||
MasrafAlRayan | 20,303 | 310 | ||||||
Qatar Islamic Bank SAQ | 5,629 | 175 | ||||||
Qatar National Bank SAQ | 4,505 | 250 | ||||||
5,986 | ||||||||
Russia – 4.0% | ||||||||
Gazprom OAO ADR | 1,265,410 | 8,865 | ||||||
Lukoil OAO ADR | 452,086 | 22,972 | ||||||
Magnit OJSC | 16,539 | 4,145 | ||||||
Magnit OJSC GDR (Registered) | 107,258 | 6,188 | ||||||
Mail.ru Group Ltd. GDR (Registered) * | 113,816 | 3,196 | ||||||
MegaFon OAO GDR (Registered) | 14,506 | 368 | ||||||
MMC Norilsk Nickel OJSC ADR | 336,510 | 6,249 | ||||||
Mobile Telesystems OJSC ADR | 255,212 | 3,813 | ||||||
OTCPharm * | 27,410 | 9 | ||||||
Pharmstandard OJSC GDR (Registered) * | 27,410 | 346 | ||||||
PhosAgro OAO GDR (Registered) | 537,839 | 6,043 | ||||||
Rosneft OAO GDR (Registered) | 785,500 | 4,572 | ||||||
Sberbank of Russia | 2,388,110 | 4,537 | ||||||
Sberbank of Russia ADR | 115,550 | 909 | ||||||
Severstal OAO GDR (Registered) | 160,666 | 1,603 | ||||||
Sistema JSFC GDR (Registered) | 15,781 | 109 | ||||||
Surgutneftegas OAO ADR | 75,325 | 501 | ||||||
Tatneft OAO ADR | 8,529 | 301 | ||||||
Yandex N.V., Class A * | 142,900 | 3,972 | ||||||
78,698 | ||||||||
Singapore – 0.2% | ||||||||
China Yuchai International Ltd. | 29,162 | 541 | ||||||
ComfortDelGro Corp. Ltd. | 901,000 | 1,692 | ||||||
DBS Group Holdings Ltd. | 50,000 | 721 | ||||||
Keppel REIT | 347,000 | 324 | ||||||
Mapletree Commercial Trust | 220,000 | 243 | ||||||
Mapletree Industrial Trust | 293,000 | 326 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 19 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER EMERGING MARKETS EQUITY FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.4% – continued | ||||||||
Singapore – 0.2% – continued | ||||||||
Mapletree Logistics Trust | 318,000 | $288 | ||||||
4,135 | ||||||||
South Africa – 7.0% | ||||||||
AngloGold Ashanti Ltd. ADR * | 258,700 | 3,104 | ||||||
Aspen Pharmacare Holdings Ltd. | 216,536 | 6,434 | ||||||
Aveng Ltd. * | 935,936 | 1,843 | ||||||
Barloworld Ltd. | 1,789,680 | 14,645 | ||||||
Bidvest Group Ltd. | 77,691 | 1,963 | ||||||
Coronation Fund Managers Ltd. | 72,114 | 617 | ||||||
Discovery Ltd. | 870,285 | 7,569 | ||||||
Emira Property Fund | 137,106 | 191 | ||||||
FirstRand Ltd. | 636,252 | 2,418 | ||||||
Investec Ltd. | 100,166 | 841 | ||||||
Liberty Holdings Ltd. | 88,529 | 966 | ||||||
Massmart Holdings Ltd. | 429,568 | 4,673 | ||||||
Mediclinic International Ltd. | 572,514 | 4,658 | ||||||
Mondi Ltd. | 41,084 | 674 | ||||||
MTN Group Ltd. | 478,137 | 10,077 | ||||||
Naspers Ltd., Class N | 175,719 | 19,326 | ||||||
Nedbank Group Ltd. | 83,789 | 1,621 | ||||||
Netcare Ltd. | 530,764 | 1,484 | ||||||
Redefine Properties Ltd. | 600,486 | 517 | ||||||
Reunert Ltd. | 700,975 | 3,695 | ||||||
RMB Holdings Ltd. | 293,397 | 1,469 | ||||||
Sasol Ltd. | 136,809 | 7,423 | ||||||
Standard Bank Group Ltd. | 1,242,810 | 14,349 | ||||||
Steinhoff International Holdings Ltd. | 443,674 | 2,124 | ||||||
Tongaat Hulett Ltd. | 36,251 | 501 | ||||||
Truworths International Ltd. | 3,149,730 | 18,935 | ||||||
Woolworths Holdings Ltd. | 653,469 | 4,049 | ||||||
136,166 | ||||||||
South Korea – 12.8% | ||||||||
ASIA Holdings Co. Ltd. | 1,319 | 214 | ||||||
BS Financial Group, Inc. | 340,870 | 5,458 | ||||||
Bukwang Pharmaceutical Co. Ltd. | 38,894 | 735 | ||||||
CJ O Shopping Co. Ltd. | 8,089 | 2,457 | ||||||
Coway Co. Ltd. | 19,556 | 1,557 | ||||||
Daekyo Co. Ltd. | 59,630 | 414 | ||||||
Daishin Securities Co. Ltd. | 13,267 | 141 | ||||||
Dongbu Insurance Co. Ltd. | 51,860 | 2,916 | ||||||
GS Home Shopping, Inc. | 3,351 | 808 | ||||||
Halla Visteon Climate Control Corp. | 19,367 | 939 | ||||||
Hana Financial Group, Inc. | 118,040 | 4,268 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.4% – continued | ||||||||
South Korea – 12.8% – continued | ||||||||
Hankook Tire Co. Ltd. | 382,931 | $18,673 | ||||||
Hyundai Mipo Dockyard | 46,400 | 5,441 | ||||||
Hyundai Motor Co. | 179,379 | 32,350 | ||||||
Industrial Bank of Korea | 132,698 | 1,981 | ||||||
KB Financial Group, Inc. | 90,230 | 3,287 | ||||||
Kia Motors Corp. | 28,496 | 1,448 | ||||||
Korea District Heating Corp. | 3,169 | 196 | ||||||
Korea Zinc Co. Ltd. | 2,158 | 794 | ||||||
KT Corp. | 20,729 | 674 | ||||||
KT&G Corp. | 20,552 | 1,839 | ||||||
LG Chem Ltd. | 42,528 | 10,283 | ||||||
LG Display Co. Ltd. * | 70,618 | 2,238 | ||||||
LG Electronics, Inc. | 67,843 | 4,217 | ||||||
NAVER Corp. | 1,016 | 771 | ||||||
Paradise Co. Ltd. | 88,967 | 2,914 | ||||||
POSCO | 15,837 | 4,854 | ||||||
Samsung Electronics Co. Ltd. | 77,850 | 87,152 | ||||||
Samsung Engineering Co. Ltd. * | 57,050 | 3,246 | ||||||
Shinhan Financial Group Co. Ltd. | 705,027 | 32,200 | ||||||
SK Hynix, Inc. * | 244,646 | 10,828 | ||||||
SK Networks Co. Ltd. * | 102,589 | 1,029 | ||||||
SK Telecom Co. Ltd. | 4,821 | 1,324 | ||||||
Woori Finance Holdings Co. Ltd. | 17,076 | 212 | ||||||
247,858 | ||||||||
Switzerland – 0.2% | ||||||||
Dufry A.G. (Registered) * | 30,216 | 4,608 | ||||||
Taiwan – 10.1% | ||||||||
Advanced Semiconductor Engineering, Inc. | 1,560,584 | 1,822 | ||||||
Asustek Computer, Inc. | 174,000 | 1,656 | ||||||
Compal Electronics, Inc. | 4,445,000 | 3,323 | ||||||
Delta Electronics, Inc. | 1,058,000 | 6,682 | ||||||
Epistar Corp. | 2,143,000 | 4,006 | ||||||
Farglory Land Development Co. Ltd. | 329,870 | 389 | ||||||
Hermes Microvision, Inc. | 96,000 | 4,017 | ||||||
Hiwin Technologies Corp. | 275,900 | 2,461 | ||||||
Hon Hai Precision Industry Co. Ltd. | 11,625,120 | 36,605 | ||||||
Inventec Corp. | 1,526,000 | 994 | ||||||
Kinsus Interconnect Technology Corp. | 229,000 | 848 | ||||||
Largan Precision Co. Ltd. | 68,000 | 4,853 | ||||||
Lite-On Technology Corp. | 659,798 | 950 | ||||||
MediaTek, Inc. | 882,000 | 13,068 | ||||||
Mega Financial Holding Co. Ltd. | 6,244,000 | 5,115 | ||||||
Pegatron Corp. | 607,000 | 1,114 |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 20 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.4% – continued | ||||||||
Taiwan – 10.1% – continued | ||||||||
Pou Chen Corp. | 1,286,147 | $1,428 | ||||||
Powertech Technology, Inc. * | 755,000 | 1,364 | ||||||
President Chain Store Corp. | 443,313 | 3,175 | ||||||
Quanta Computer, Inc. | 451,000 | 1,144 | ||||||
Radiant Opto-Electronics Corp. | 197,527 | 783 | ||||||
Realtek Semiconductor Corp. | 597,280 | 2,124 | ||||||
Simplo Technology Co. Ltd. | 50,000 | 242 | ||||||
Taishin Financial Holding Co. Ltd. | 4,134,222 | 1,934 | ||||||
Taiwan Cement Corp. | 863,000 | 1,284 | ||||||
Taiwan Semiconductor Manufacturing | 12,101,542 | 48,173 | ||||||
Taiwan Semiconductor Manufacturing | 1,464,700 | 29,558 | ||||||
Teco Electric and Machinery Co. Ltd. | 1,270,497 | 1,303 | ||||||
Transcend Information, Inc. | 67,000 | 222 | ||||||
United Microelectronics Corp. | 2,628,000 | 1,089 | ||||||
Vanguard International Semiconductor Corp. | 887,000 | 1,297 | ||||||
Yageo Corp. | 11,983,300 | 8,686 | ||||||
Yuanta Financial Holding Co. Ltd. | 9,019,300 | 4,441 | ||||||
196,150 | ||||||||
Thailand – 1.4% | ||||||||
Airports of Thailand PCL NVDR | 725,400 | 5,333 | ||||||
Bangkok Bank PCL NVDR | 595,100 | 3,742 | ||||||
Bangkok Expressway PCL NVDR | 311,700 | 365 | ||||||
Delta Electronics Thailand PCL NVDR | 220,400 | 420 | ||||||
Kasikornbank PCL NVDR | 1,160,700 | 8,380 | ||||||
Kiatnakin Bank PCL (Registered) | 624,900 | 814 | ||||||
Krung Thai Bank PCL (Registered) | 2,872,492 | 2,100 | ||||||
PTT PCL NVDR | 390,800 | 4,331 | ||||||
Thanachart Capital PCL NVDR | 1,026,700 | 1,177 | ||||||
26,662 | ||||||||
Turkey – 2.4% | ||||||||
Akbank T.A.S. | 538,575 | 1,753 | ||||||
Arcelik A.S. | 799,676 | 4,262 | ||||||
Coca-Cola Icecek A.S. | 191,962 | 4,140 | ||||||
Emlak Konut Gayrimenkul Yatirim Ortakligi A.S. | 1,053,547 | 1,098 | ||||||
Enka Insaat ve Sanayi A.S. | 373,854 | 853 | ||||||
Eregli Demir ve Celik Fabrikalari T.A.S. | 952,462 | 1,768 | ||||||
TAV Havalimanlari Holding A.S. | 562,786 | 4,520 | ||||||
Tofas Turk Otomobil Fabrikasi A.S. | 106,408 | 597 | ||||||
Tupras Turkiye Petrol Rafinerileri A.S. | 765,922 | 15,394 | ||||||
Turk Hava Yollari AO * | 375,352 | 1,065 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.4% – continued | ||||||||
Turkey – 2.4% – continued | ||||||||
Turkiye Garanti Bankasi A.S. | 686,892 | $2,410 | ||||||
Turkiye Halk Bankasi A.S. | 790,325 | 4,748 | ||||||
Turkiye Is Bankasi, Class C | 312,318 | 693 | ||||||
Turkiye Sise ve Cam Fabrikalari A.S. | 950,483 | 1,208 | ||||||
Ulker Biskuvi Sanayi A.S. | 405,100 | 2,688 | ||||||
47,197 | ||||||||
United Arab Emirates – 2.3% | ||||||||
Abu Dhabi Commercial Bank PJSC | 546,282 | 1,259 | ||||||
Aldar Properties PJSC | 108,030 | 115 | ||||||
Dubai Financial Market | 126,188 | 115 | ||||||
Dubai Islamic Bank PJSC | 513,389 | 1,154 | ||||||
Emaar Properties PJSC | 12,163,477 | 38,117 | ||||||
First Gulf Bank PJSC | 76,366 | 389 | ||||||
National Bank of Abu Dhabi PJSC | 36,656 | 144 | ||||||
Union National Bank PJSC | 2,093,542 | 3,796 | ||||||
45,089 | ||||||||
United Kingdom – 0.9% | ||||||||
Anglo American PLC | 762,518 | 16,984 | ||||||
O’Key Group S.A. GDR (Registered) | 41,654 | 304 | ||||||
17,288 | ||||||||
United States – 1.6% | ||||||||
Cognizant Technology Solutions Corp., Class A * | 151,700 | 6,792 | ||||||
Flextronics International Ltd. * | 192,900 | 1,991 | ||||||
Tenaris S.A. ADR | 472,744 | 21,533 | ||||||
30,316 | ||||||||
Total Common Stocks (4) | ||||||||
(Cost $1,485,310) | 1,754,880 | |||||||
PREFERRED STOCKS – 5.7% | ||||||||
Brazil – 5.7% | ||||||||
Banco Bradesco S.A. ADR | 83,322 | 1,187 | ||||||
Bradespar S.A. | 76,250 | 558 | ||||||
Cia Brasileira de Distribuicao ADR | 127,400 | 5,556 | ||||||
Cia Energetica de Sao Paulo, Class B | 152,800 | 1,655 | ||||||
Cia Paranaense de Energia ADR, Class B | 48,372 | 661 | ||||||
Itau Unibanco Holding S.A. | 121,988 | 1,701 | ||||||
Itau Unibanco Holding S.A. ADR | 2,748,633 | 38,151 | ||||||
Itausa - Investimentos Itau S.A. | 178,450 | 679 | ||||||
Lojas Americanas S.A. | 1,777,604 | 10,080 | ||||||
Metalurgica Gerdau S.A. | 119,200 | 693 | ||||||
Petroleo Brasileiro S.A. * | 886,156 | 6,589 | ||||||
Petroleo Brasileiro S.A. ADR * | 410,040 | 6,106 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 21 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER EMERGING MARKETS EQUITY FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
PREFERRED STOCKS – 5.7% – continued | ||||||||
Brazil – 5.7% – continued | ||||||||
Randon Participacoes S.A. | 1,223,062 | $3,218 | ||||||
Telefonica Brasil S.A. ADR | 256,300 | 5,044 | ||||||
Usinas Siderurgicas de Minas Gerais S.A., Class A * | 1,111,575 | 2,875 | ||||||
Vale S.A. | 1,643,313 | 15,965 | ||||||
Vale S.A. ADR | 934,200 | 9,071 | ||||||
109,789 | ||||||||
South Korea – 0.0% | ||||||||
Samsung Electronics Co. Ltd. | 1,213 | 1,031 | ||||||
Total Preferred Stocks (4) | ||||||||
(Cost $138,705) | 110,820 | |||||||
NUMBER OF WARRANTS | VALUE (000s) | |||||||
WARRANTS – 1.2% | ||||||||
India – 0.6% | ||||||||
ITC Ltd., Exp. 5/2/18 * | 1,037,793 | $6,221 | ||||||
Maruti Suzuki India Ltd., Exp. 2/9/15 * | 121,323 | 6,017 | ||||||
12,238 | ||||||||
Pakistan – 0.2% | ||||||||
United Bank Ltd., Exp. 6/17/19, | 1,829,317 | 3,370 | ||||||
Taiwan – 0.4% | ||||||||
CTBC Financial Holding Co. Ltd. | 12,206,483 | 8,206 | ||||||
Total Warrants (4) | ||||||||
(Cost $18,458) | 23,814 |
NUMBER OF SHARES | VALUE (000s) | |||||||
INVESTMENT COMPANIES – 2.4% | ||||||||
Northern Institutional Funds - Diversified Assets Portfolio, 0.01% (5)(6) | 45,982,699 | $45,983 | ||||||
Total Investment Companies | ||||||||
(Cost $45,983) | 45,983 | |||||||
Total Investments – 99.7% | ||||||||
(Cost $1,688,456) | 1,935,497 | |||||||
Other Assets less Liabilities – 0.3% |
| 5,642 | ||||||
NET ASSETS – 100.0% | $1,941,139 |
(1) | 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. The value of these securities is determined by valuations supplied by a pricing service or brokers, or if not available in accordance with procedures established by the Trustees of Northern Multi-Manager Funds. |
(2) | Restricted security that has been deemed illiquid. At September 30, 2014, the value of these restricted illiquid securities amounted to approximately $21,359,000 or 1.1% of net assets. Additional information on each restricted illiquid security is as follows: |
SECURITY | ACQUISITION AND ENFORCEABLE DATE | ACQUISITION (000s) | ||||||
CTBC Financial Holding Co. Ltd., Exp. 3/9/16, Strike $0.01 | 3/9/11-8/1/14 | $7,453 | ||||||
Tianhe Chemicals Group Ltd. | 6/13/14 | 5,072 | ||||||
United Bank Ltd., Exp. 6/17/19, Strike $0.01 | 6/16/14-8/13/14 | 3,069 | ||||||
WH Group Ltd. | 7/30/14-8/5/14 | 3,400 |
(3) | Level 3 asset that is worthless, bankrupt or has been delisted. |
(4) | In accordance with the Fund’s prospectus, adjustment factors were provided by an independent evaluation service to determine the value of certain foreign securities. |
(5) | At March 31, 2014, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $42,697,000 with net purchases of approximately $3,286,000 during the six months ended September 30, 2014. |
(6) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
* | Non-Income Producing Security |
Percentages shown are based on Net Assets.
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 22 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
At September 30, 2014, the industry sectors for the Fund were:
INDUSTRY SECTOR | % OF LONG-TERM INVESTMENTS | |||
Consumer Discretionary | 15.5% | |||
Consumer Staples | 5.6 | |||
Energy | 9.1 | |||
Financials | 24.3 | |||
Health Care | 1.5 | |||
Industrials | 5.3 | |||
Information Technology | 22.4 | |||
Materials | 8.2 | |||
Telecommunication Services | 6.8 | |||
Utilities | 1.3 | |||
Total | 100.0% |
At September 30, 2014, the Fund’s investments were denominated in the following currencies:
CONCENTRATION BY CURRENCY | % OF LONG-TERM INVESTMENTS | |||
United States Dollar | 22.5% | |||
Hong Kong Dollar | 18.1 | |||
Korean Won | 13.2 | |||
Taiwan Dollar | 8.8 | |||
South African Rand | 7.9 | |||
Indian Rupee | 7.1 | |||
Brazilian Real | 6.4 | |||
All other currencies less than 5% | 16.0 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices). The Fund adjusted the price of certain foreign equity securities held in its portfolio on September 30, 2014 using adjustment factors designed to reflect more accurately the fair value of the securities. The fair valuation of these securities resulted in their categorization as Level 2 investments.
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Common Stocks | ||||||||||||||||
Brazil | $127,225 | $– | $– | $127,225 | ||||||||||||
China | 17,665 | 193,488 | – | 211,153 | ||||||||||||
Colombia | 203 | – | – | 203 | ||||||||||||
Hong Kong | 3,349 | 144,608 | 947 | 148,904 | ||||||||||||
India | 21,068 | 134,031 | – | 155,099 | ||||||||||||
Mexico | 129,584 | – | – | 129,584 | ||||||||||||
Peru | 7,209 | – | – | 7,209 | ||||||||||||
Russia | 7,784 | 70,904 | 10 | 78,698 | ||||||||||||
Singapore | 541 | 3,594 | – | 4,135 | ||||||||||||
South Africa | 3,104 | 133,062 | – | 136,166 | ||||||||||||
Switzerland | 4,608 | – | – | 4,608 | ||||||||||||
Taiwan | 29,558 | 166,592 | – | 196,150 | ||||||||||||
United States | 30,316 | – | – | 30,316 | ||||||||||||
All other countries | – | 525,430 | (1) | – | 525,430 | |||||||||||
Preferred Stocks | ||||||||||||||||
Brazil | 109,789 | – | – | 109,789 | ||||||||||||
South Korea | – | 1,031 | – | 1,031 | ||||||||||||
Warrants | – | 23,814 | (1) | – | 23,814 | |||||||||||
Investment Companies | 45,983 | – | – | 45,983 | ||||||||||||
Total Investments | $537,986 | $1,396,554 | $957 | $1,935,497 |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, the Fund had transfers from Level 1 to Level 2 as disclosed below:
Transfers from Level 1 to Level 2 | ||||||
Value (000s) | Reason | |||||
Common Stocks | ||||||
Russia | $8,681 | Valuations at last trade with foreign fair value adjustment | ||||
Warrants | ||||||
India | 12,238 | Valuations based on parity price | ||||
Taiwan | 8,206 | Valuations based on parity price | ||||
Total | $29,125 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 23 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER EMERGING MARKETS EQUITY FUND continued | SEPTEMBER 30, 2014 (UNAUDITED) |
At September 30, 2014, the Fund had transfers from Level 2 to Level 1 as disclosed below:
Transfers from Level 2 to Level 1 | ||||||
Value (000S) | Reason | |||||
Common Stocks | ||||||
Switzerland | $4,608 | Valuations at last trade price |
The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:
BALANCE AS OF 3/31/14 (000s) | REALIZED GAINS (LOSSES) (000s) | CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) (000s) | PURCHASES (000s) | SALES (000s) | TRANSFERS LEVEL 3 | TRANSFERS OUT OF LEVEL 3 (000s) | BALANCE AS OF 9/30/14 (000s) | CHANGE IN UNREALIZED AT 9/30/14 (000s) | ||||||||||||||||||||||||||||
Common Stocks | ||||||||||||||||||||||||||||||||||||
Hong Kong | $ | – | $ | – | $ | – | $ | – | $ | – | $ | 947 | $ | – | $ | 947 | $ | (1 | ) | |||||||||||||||||
United States | – | – | – | – | – | 10 | – | 10 | – | |||||||||||||||||||||||||||
Total | $ | – | $ | – | $ | – | $ | – | $ | – | $ | 957 | $ | – | $ | 957 | $ | (1 | ) |
(1) | Securities valued at $947 were transferred into Level 3 due to the Fund receiving valuations provided by the Asset Management PVC. Securities valued at $10 were transferred into Level 3 due to valuations based on a last trade price in an inactive market. |
FAIR VALUE AT 9/30/14 (000s) | VALUATION TECHNIQUES | UNOBSERVABLE INPUTS | ||||||
Common Stock | $947 | Market Comparable Companies | Price to Earnings Multiple/Liquidity Discount |
The significant unobservable inputs used in the fair value measurement are the price to earnings multiple along with liquidity discounts. Significant increases (decreases) in the price to earnings multiple in isolation would result in a significantly higher (lower) fair value measurement while an increase (decrease) in liquidity discounts in isolation would result in a significantly lower (higher) fair value measurement.
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 24 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER GLOBAL LISTED INFRASTRUCTURE FUND | SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.9% | ||||||||
Australia – 9.7% | ||||||||
AusNet Services | 14,586,708 | $17,387 | ||||||
DUET Group | 13,282,716 | 28,236 | ||||||
Macquarie Atlas Roads Group | 2,343,448 | 5,887 | ||||||
Origin Energy Ltd. | 493,600 | 6,447 | ||||||
Spark Infrastructure Group | 11,038,507 | 17,751 | ||||||
Transurban Group | 9,403,180 | 63,431 | ||||||
139,139 | ||||||||
Austria – 0.2% | ||||||||
Flughafen Wien A.G. | 41,921 | 3,500 | ||||||
Bermuda – 0.6% | ||||||||
Teekay Corp. | 118,600 | 7,870 | ||||||
Brazil – 1.3% | ||||||||
CCR S.A. | 1,685,200 | 11,635 | ||||||
Cia de Saneamento Basico do Estado de Sao Paulo ADR * | 939,700 | 7,621 | ||||||
19,256 | ||||||||
Canada – 5.8% | ||||||||
Enbridge, Inc. | 837,800 | 40,104 | ||||||
Inter Pipeline Ltd. | 347,300 | 11,272 | ||||||
Pembina Pipeline Corp. | 230,200 | 9,697 | ||||||
TransCanada Corp. | 288,700 | 14,869 | ||||||
Veresen, Inc. | 423,700 | 6,443 | ||||||
82,385 | ||||||||
China – 1.5% | ||||||||
COSCO Pacific Ltd. | 6,198,800 | 8,215 | ||||||
ENN Energy Holdings Ltd. | 1,486,400 | 9,728 | ||||||
Zhejiang Expressway Co. Ltd., Class H | 2,787,100 | 2,833 | ||||||
20,776 | ||||||||
France – 12.0% | ||||||||
Aeroports de Paris | 113,728 | 13,594 | ||||||
Eutelsat Communications S.A. | 1,277,658 | 41,197 | ||||||
GDF Suez | 588,300 | 14,714 | ||||||
Groupe Eurotunnel S.A. (Registered) | 853,800 | 10,401 | ||||||
SES S.A. | 1,001,174 | 34,609 | ||||||
Vinci S.A. | 972,213 | 56,291 | ||||||
170,806 | ||||||||
Germany – 1.2% | ||||||||
Fraport A.G. Frankfurt Airport Services Worldwide | 269,200 | 17,691 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.9% – continued | ||||||||
Hong Kong – 2.1% | ||||||||
Beijing Enterprises Holdings Ltd. | 1,671,600 | $14,330 | ||||||
Kunlun Energy Co. Ltd. | 10,959,700 | 15,812 | ||||||
30,142 | ||||||||
Italy – 14.6% | ||||||||
ASTM S.p.A. | 318,898 | 4,268 | ||||||
Atlantia S.p.A. | 3,477,970 | 85,574 | ||||||
Hera S.p.A. | 6,793,362 | 17,948 | ||||||
Snam S.p.A. | 9,801,150 | 54,028 | ||||||
Societa Iniziative Autostradali e Servizi S.p.A. | 1,086,551 | 11,655 | ||||||
Terna Rete Elettrica Nazionale S.p.A. | 6,970,960 | 34,940 | ||||||
208,413 | ||||||||
Japan – 5.5% | ||||||||
Toho Gas Co. Ltd. | 2,540,000 | 14,340 | ||||||
Tokyo Gas Co. Ltd. | 11,426,500 | 64,272 | ||||||
78,612 | ||||||||
Mexico – 0.1% | ||||||||
Infraestructura Energetica Nova S.A.B.de C.V. | 309,900 | 1,893 | ||||||
Netherlands – 0.3% | ||||||||
Koninklijke Vopak N.V. | 71,300 | 3,839 | ||||||
South Korea – 0.3% | ||||||||
Macquarie Korea Infrastructure Fund | 657,970 | 4,515 | ||||||
Spain – 2.4% | ||||||||
Abengoa S.A., Class B | 1,319,700 | 6,896 | ||||||
Ferrovial S.A. | 806,900 | 15,587 | ||||||
Obrascon Huarte Lain S.A. | 343,400 | 11,425 | ||||||
33,908 | ||||||||
Switzerland – 1.9% | ||||||||
Flughafen Zuerich A.G. (Registered) | 42,966 | 26,913 | ||||||
United Kingdom – 3.0% | ||||||||
Pennon Group PLC | 2,614,568 | 33,497 | ||||||
United Utilities Group PLC | 766,300 | 9,991 | ||||||
43,488 | ||||||||
United States – 28.4% | ||||||||
American Tower Corp. | 450,500 | 42,180 | ||||||
American Water Works Co., Inc. | 221,300 | 10,673 | ||||||
California Water Service Group | 423,630 | 9,506 | ||||||
Crown Castle International Corp. | 370,300 | 29,820 | ||||||
CSX Corp. | 1,782,950 | 57,161 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 25 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER GLOBAL LISTED INFRASTRUCTURE FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 90.9% – continued | ||||||||
United States – 28.4% – continued | ||||||||
Genesee & Wyoming, Inc., Class A * | 74,110 | $7,063 | ||||||
Kansas City Southern | 157,200 | 19,053 | ||||||
NiSource, Inc. | 309,200 | 12,671 | ||||||
Norfolk Southern Corp. | 326,850 | 36,477 | ||||||
PG&E Corp. | 1,141,260 | 51,402 | ||||||
SBA Communications Corp., Class A * | 208,700 | 23,145 | ||||||
SemGroup Corp., Class A | 184,000 | 15,322 | ||||||
Sempra Energy | 230,800 | 24,322 | ||||||
SJW Corp. | 104,680 | 2,813 | ||||||
Spectra Energy Corp. | 736,700 | 28,923 | ||||||
Waste Connections, Inc. | 240,100 | 11,650 | ||||||
Williams (The) Cos., Inc. | 412,400 | 22,826 | ||||||
405,007 | ||||||||
Total Common Stocks (1) | ||||||||
(Cost $1,217,306) | 1,298,153 | |||||||
MASTER LIMITED PARTNERSHIPS – 6.9% | ||||||||
United States – 6.9% | ||||||||
Access Midstream Partners L.P. | 232,700 | 14,809 | ||||||
Atlas Pipeline Partners L.P. | 201,400 | 7,343 | ||||||
Crestwood Equity Partners L.P. | 732,000 | 7,737 | ||||||
Energy Transfer Equity L.P. | 249,100 | 15,367 | ||||||
Enterprise Products Partners L.P. | 492,600 | 19,852 | ||||||
EQT Midstream Partners L.P. | 75,900 | 6,801 | ||||||
EV Energy Partners L.P. | 179,745 | 6,376 | ||||||
MarkWest Energy Partners L.P. | 179,100 | 13,759 | ||||||
Plains All American Pipeline L.P. | 124,200 | 7,310 | ||||||
99,354 | ||||||||
Total Master Limited Partnerships (1) | ||||||||
(Cost $76,407) | 99,354 | |||||||
PREFERRED STOCKS – 0.2% | ||||||||
Brazil – 0.2% | ||||||||
Cia Energetica de Minas Gerais S.A. ADR | 402,100 | 2,505 | ||||||
Total Preferred Stocks (1) | ||||||||
(Cost $3,571) | 2,505 |
NUMBER OF SHARES | VALUE (000s) | |||||||
INVESTMENT COMPANIES – 1.3% | ||||||||
Northern Institutional Funds - Diversified Assets Portfolio, 0.01% (2)(3) | 18,325,762 | $18,326 | ||||||
Total Investment Companies | ||||||||
(Cost $18,326) | 18,326 | |||||||
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
SHORT-TERM INVESTMENTS – 0.1% | ||||||||
U.S. Treasury Bill, | $1,720 | $1,720 | ||||||
Total Short-Term Investments | ||||||||
(Cost $1,720) | 1,720 | |||||||
Total Investments – 99.4% | ||||||||
(Cost $1,317,330) | 1,420,058 | |||||||
Other Assets less Liabilities – 0.6% | 7,871 | |||||||
NET ASSETS – 100.0% | $1,427,929 |
(1) | In accordance with the Fund’s prospectus, adjustment factors were provided by an independent evaluation service to determine the value of certain foreign securities. |
(2) | At March 31, 2014, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $52,553,000 with net sales of approximately $34,227,000 during the six months ended September 30, 2014. |
(3) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
(4) | Security pledged as collateral to cover margin requirements for open futures contracts. |
* | Non-Income Producing Security |
Percentages shown are based on Net Assets.
At September 30, 2014, the Fund had open futures contracts as follows:
TYPE | NUMBER OF CONTRACTS | NOTIONAL AMOUNT (000s) | CONTRACT POSITION | CONTRACT EXP. | UNREALIZED GAINS (LOSSES) (000s) | |||||||||||||||
E-mini S&P 500 | 35 | $3,440 | Long | 12/14 | $(32) | |||||||||||||||
Mini MSCI EAFE Index | 29 | 2,668 | Long | 12/14 | (72) | |||||||||||||||
Total | $(104) |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 26 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
At September 30, 2014, the industry sectors for the Fund were:
INDUSTRY SECTOR | % OF LONG-TERM INVESTMENTS | |||
Consumer Discretionary | 5.4% | |||
Energy | 20.2 | |||
Financials | 5.5 | |||
Industrials | 35.8 | |||
Telecommunication Services | 1.7 | |||
Utilities | 31.4 | |||
Total | 100.0% |
At September 30, 2014, the Fund’s investments were denominated in the following currencies:
CONCENTRATION BY CURRENCY | % OF LONG-TERM INVESTMENTS | |||
United States Dollar | 37.3% | |||
Euro | 31.3 | |||
Australian Dollar | 9.9 | |||
Canadian Dollar | 5.9 | |||
Japanese Yen | 5.6 | |||
All other currencies less than 5% | 10.0 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices). The Fund adjusted the price of certain foreign equity securities held in its portfolio on September 30, 2014 using adjustment factors designed to reflect more accurately the fair value of the securities. The fair valuation of these securities resulted in their categorization as Level 2 investments.
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Common Stocks | ||||||||||||||||
Bermuda | $7,870 | $– | $– | $7,870 | ||||||||||||
Brazil | 19,256 | – | – | 19,256 | ||||||||||||
Canada | 82,385 | – | – | 82,385 | ||||||||||||
Mexico | 1,893 | – | – | 1,893 | ||||||||||||
United States | 405,007 | – | – | 405,007 | ||||||||||||
All Other Countries | – | 781,742 | (1) | – | 781,742 | |||||||||||
Master Limited Partnerships | 99,354 | (1) | – | – | 99,354 | |||||||||||
Preferred Stocks | 2,505 | (1) | 2,505 | |||||||||||||
Investment Companies | 18,326 | – | – | 18,326 | ||||||||||||
Short-Term Investments | – | 1,720 | – | 1,720 | ||||||||||||
Total Investments | $636,596 | $783,462 | $– | $1,420,058 | ||||||||||||
OTHER FINANCIAL INSTRUMENTS |
| |||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $(104 | ) | $– | $– | $(104 | ) |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 27 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER GLOBAL REAL ESTATE FUND
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 93.9% | ||||||||
Australia – 6.9% | ||||||||
BGP Holdings PLC (1)* | 3,277,404 | $ – | ||||||
Dexus Property Group | 7,178,954 | 6,982 | ||||||
Federation Centres | 1,171,400 | 2,647 | ||||||
Goodman Group | 908,855 | 4,098 | ||||||
Investa Office Fund | 2,161,848 | 6,326 | ||||||
Mirvac Group | 6,278,110 | 9,459 | ||||||
Scentre Group * | 5,385,038 | 15,421 | ||||||
Stockland | 1,095,048 | 3,781 | ||||||
Westfield Corp. * | 1,615,517 | 10,507 | ||||||
59,221 | ||||||||
Canada – 2.5% | ||||||||
Allied Properties Real Estate Investment Trust | 204,300 | 6,235 | ||||||
Boardwalk Real Estate Investment Trust | 126,600 | 7,789 | ||||||
Canadian Real Estate Investment Trust | 29,900 | 1,295 | ||||||
H&R Real Estate Investment Trust | 307,900 | 6,010 | ||||||
21,329 | ||||||||
Finland – 0.4% | ||||||||
Citycon OYJ | 1,106,562 | 3,689 | ||||||
France – 2.6% | ||||||||
ICADE | 14,224 | 1,199 | ||||||
Klepierre | 227,501 | 9,952 | ||||||
Mercialys S.A. | 56,540 | 1,233 | ||||||
Unibail-Rodamco S.E. | 37,622 | 9,661 | ||||||
22,045 | ||||||||
Germany – 2.2% | ||||||||
alstria office REIT-A.G. * | 343,613 | 4,209 | ||||||
Deutsche Annington Immobilien S.E. | 255,702 | 7,394 | ||||||
GAGFAH S.A. * | 163,940 | 3,045 | ||||||
LEG Immobilien A.G. * | 62,170 | 4,307 | ||||||
18,955 | ||||||||
Hong Kong – 6.2% | ||||||||
Hang Lung Properties Ltd. | 418,900 | 1,190 | ||||||
Hongkong Land Holdings Ltd. | 1,525,570 | 10,354 | ||||||
Hysan Development Co. Ltd. | 1,307,000 | 6,046 | ||||||
Link REIT (The) | 1,078,695 | 6,217 | ||||||
New World Development Co. Ltd. | 2,057,600 | 2,399 | ||||||
Sun Hung Kai Properties Ltd. | 1,672,200 | 23,660 | ||||||
Swire Properties Ltd. | 849,000 | 2,649 | ||||||
52,515 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 93.9% – continued | ||||||||
Italy – 0.3% | ||||||||
Beni Stabili S.p.A. | 4,308,656 | $3,020 | ||||||
Japan – 10.2% | ||||||||
GLP J-REIT | 7,469 | 8,624 | ||||||
Japan Hotel REIT Investment Corp. | 1,303 | 794 | ||||||
Japan Real Estate Investment Corp. | 670 | 3,446 | ||||||
Japan Retail Fund Investment Corp. | 2,089 | 4,206 | ||||||
Kenedix Office Investment Corp. | 1,015 | 5,457 | ||||||
Mitsubishi Estate Co. Ltd. | 784,871 | 17,682 | ||||||
Mitsui Fudosan Co. Ltd. | 902,484 | 27,675 | ||||||
Mori Hills REIT Investment Corp. | 3,110 | 4,323 | ||||||
Nippon Prologis REIT, Inc. | 789 | 1,832 | ||||||
Nomura Real Estate Holdings, Inc. | 92,000 | 1,582 | ||||||
NTT Urban Development Corp. | 123,000 | 1,295 | ||||||
Orix JREIT, Inc. | 1,037 | 1,305 | ||||||
Sumitomo Realty & Development Co. Ltd. | 172,800 | 6,156 | ||||||
Tokyo Tatemono Co. Ltd. | 78,900 | 639 | ||||||
United Urban Investment Corp. | 1,257 | 1,929 | ||||||
86,945 | ||||||||
Mexico – 0.8% | ||||||||
Concentradora Fibra Hotelera Mexicana S.A. de C.V. | 1,503,427 | 2,622 | ||||||
Prologis Property Mexico S.A. de C.V. * | 1,909,600 | 4,015 | ||||||
6,637 | ||||||||
Netherlands – 0.5% | ||||||||
Corio N.V. | 19,640 | 961 | ||||||
Eurocommercial Properties N.V. - CVA | 29,034 | 1,279 | ||||||
Nieuwe Steen Investments N.V. | 353,560 | 1,855 | ||||||
4,095 | ||||||||
Singapore – 2.6% | ||||||||
CapitaCommercial Trust | 4,908,000 | 6,137 | ||||||
CapitaLand Ltd. | 941,500 | 2,359 | ||||||
Global Logistic Properties Ltd. | 1,821,900 | 3,866 | ||||||
Mapletree Commercial Trust | 1,707,000 | 1,887 | ||||||
Suntec Real Estate Investment Trust | 5,483,200 | 7,566 | ||||||
21,815 | ||||||||
Sweden – 0.4% | ||||||||
Castellum AB | 121,489 | 1,842 | ||||||
Fabege AB | 25,000 | 317 | ||||||
Hufvudstaden AB, Class A | 97,082 | 1,206 | ||||||
3,365 |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 28 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 93.9% – continued | ||||||||
Switzerland – 0.2% | ||||||||
PSP Swiss Property A.G. (Registered) * | 19,034 | $1,596 | ||||||
United Kingdom – 6.1% | ||||||||
British Land (The) Co. PLC | 1,594,794 | 18,106 | ||||||
Derwent London PLC | 77,110 | 3,397 | ||||||
Great Portland Estates PLC | 887,439 | 9,189 | ||||||
Hammerson PLC | 410,390 | 3,815 | ||||||
Land Securities Group PLC | 396,677 | 6,658 | ||||||
Safestore Holdings PLC | 298,600 | 1,036 | ||||||
Segro PLC | 1,568,390 | 9,195 | ||||||
UNITE Group (The) PLC | 91,208 | 627 | ||||||
52,023 | ||||||||
United States – 52.0% | ||||||||
American Campus Communities, Inc. | 203,670 | 7,424 | ||||||
American Realty Capital Properties, Inc. | 936,928 | 11,299 | ||||||
American Residential Properties, Inc. * | 170,060 | 3,119 | ||||||
Apartment Investment & Management Co., Class A | 196,102 | 6,240 | ||||||
AvalonBay Communities, Inc. | 111,399 | 15,704 | ||||||
BioMed Realty Trust, Inc. | 127,400 | 2,573 | ||||||
Boston Properties, Inc. | 125,226 | 14,496 | ||||||
Brandywine Realty Trust | 455,972 | 6,416 | ||||||
Brixmor Property Group, Inc. | 71,800 | 1,598 | ||||||
Camden Property Trust | 73,014 | 5,004 | ||||||
CBL & Associates Properties, Inc. | 115,124 | 2,061 | ||||||
Cousins Properties, Inc. | 113,060 | 1,351 | ||||||
CyrusOne, Inc. | 127,514 | 3,065 | ||||||
DCT Industrial Trust, Inc. | 991,257 | 7,444 | ||||||
DDR Corp. | 614,950 | 10,288 | ||||||
DiamondRock Hospitality Co. | 331,360 | 4,202 | ||||||
Douglas Emmett, Inc. | 228,642 | 5,869 | ||||||
Duke Realty Corp. | 569,020 | 9,776 | ||||||
Equity Commonwealth | 151,067 | 3,884 | ||||||
Equity Residential | 307,900 | 18,961 | ||||||
Essex Property Trust, Inc. | 54,543 | 9,750 | ||||||
First Industrial Realty Trust, Inc. | 107,147 | 1,812 | ||||||
General Growth Properties, Inc. | 589,088 | 13,873 | ||||||
Gramercy Property Trust, Inc. | 804,966 | 4,637 | ||||||
Health Care REIT, Inc. | 385,887 | 24,068 | ||||||
Healthcare Realty Trust, Inc. | 190,261 | 4,505 | ||||||
Healthcare Trust of America, Inc., Class A | 427,271 | 4,956 | ||||||
Highwoods Properties, Inc. | 214,479 | 8,343 | ||||||
Hilton Worldwide Holdings, Inc.* | 89,000 | 2,192 | ||||||
Host Hotels & Resorts, Inc. | 934,608 | 19,935 | ||||||
Kilroy Realty Corp. | 166,966 | 9,924 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 93.9% – continued | ||||||||
United States – 52.0% – continued | ||||||||
Kimco Realty Corp. | 283,315 | $6,207 | ||||||
Kite Realty Group Trust | 157,927 | 3,828 | ||||||
Lexington Realty Trust | 179,000 | 1,752 | ||||||
Liberty Property Trust | 66,000 | 2,195 | ||||||
Macerich (The) Co. | 55,521 | 3,544 | ||||||
Pebblebrook Hotel Trust | 158,393 | 5,914 | ||||||
Post Properties, Inc. | 172,413 | 8,852 | ||||||
Prologis, Inc. | 459,628 | 17,328 | ||||||
PS Business Parks, Inc. | 55,121 | 4,197 | ||||||
Public Storage | 71,495 | 11,857 | ||||||
Ramco-Gershenson Properties Trust | 287,063 | 4,665 | ||||||
Regency Centers Corp. | 87,601 | 4,716 | ||||||
RLJ Lodging Trust | 210,616 | 5,996 | ||||||
Simon Property Group, Inc. | 235,306 | 38,689 | ||||||
SL Green Realty Corp. | 98,914 | 10,022 | ||||||
Spirit Realty Capital, Inc. | 813,421 | 8,923 | ||||||
Starwood Hotels & Resorts Worldwide, Inc. | 25,606 | 2,131 | ||||||
Strategic Hotels & Resorts, Inc. * | 581,428 | 6,774 | ||||||
Sun Communities, Inc. | 37,400 | 1,889 | ||||||
Sunstone Hotel Investors, Inc. | 116,800 | 1,614 | ||||||
Tanger Factory Outlet Centers, Inc. | 29,540 | 967 | ||||||
Taubman Centers, Inc. | 120,487 | 8,796 | ||||||
UDR, Inc. | 576,111 | 15,699 | ||||||
Ventas, Inc. | 76,147 | 4,717 | ||||||
Vornado Realty Trust | 111,999 | 11,195 | ||||||
Washington Real Estate Investment Trust | 253,919 | 6,444 | ||||||
443,680 | ||||||||
Total Common Stocks (2) | ||||||||
(Cost $715,095) | 800,930 | |||||||
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CONVERTIBLE BONDS – 0.7% | ||||||||
United States – 0.7% | ||||||||
Forest City Enterprises, Inc., | $5,318 | $5,474 | ||||||
Total Convertible Bonds | ||||||||
(Cost $5,585) | 5,474 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 29 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER GLOBAL REAL ESTATE FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
RIGHTS – 0.0% | ||||||||
Italy – 0.0% | ||||||||
Beni Stabili S.p.A * | 4,308,656 | $90 | ||||||
Total Rights | ||||||||
(Cost $–) | 90 | |||||||
NUMBER OF WARRANTS | VALUE (000s) | |||||||
WARRANTS – 0.0% | ||||||||
Hong Kong – 0.0% | ||||||||
Sun Hung Kai Properties Ltd., | 33,266 | $55 | ||||||
Total Warrants (2) | ||||||||
(Cost $–) | 55 | |||||||
NUMBER OF SHARES | VALUE (000s) | |||||||
INVESTMENT COMPANIES – 5.0% | ||||||||
iShares US Real Estate ETF | 58,321 | $4,036 | ||||||
Northern Institutional Funds - Diversified Assets Portfolio, | 38,285,925 | 38,286 | ||||||
Total Investment Companies | ||||||||
(Cost $42,607) | 42,322 | |||||||
Total Investments – 99.6% | ||||||||
(Cost $763,287) | 848,871 | |||||||
Other Assets less Liabilities – 0.4% |
| 3,786 | ||||||
NET ASSETS – 100.0% | $852,657 |
(1) | Level 3 asset that is worthless, bankrupt or has been delisted. |
(2) | In accordance with the Fund’s prospectus, adjustment factors were provided by an independent evaluation service to determine the value of certain foreign securities. |
(3) | At March 31, 2014, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $27,968,000 with net purchases of approximately $10,318,000 during the six months ended September 30, 2014. |
(4) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
* | Non-Income Producing Security |
Percentages shown are based on Net Assets.
At September 30, 2014, the industry sectors for the Fund were:
INDUSTRY SECTOR | % OF LONG-TERM INVESTMENTS | |||
Diversified Real Estate Activities | 10.3% | |||
Diversified REITs | 14.9 | |||
Health Care REITs | 4.7 | |||
Hotel & Resort REITs | 5.9 | |||
Hotels, Resorts & Cruise Lines | 0.5 | |||
Industrial REITs | 6.7 | |||
Office REITs | 15.3 | |||
Real Estate Operating Companies | 6.6 | |||
Residential REITs | 12.4 | |||
Retail REITs | 20.6 | |||
Specialized REITs | 2.1 | |||
Total | 100.0% |
At September 30, 2014, the Fund’s investments were denominated in the following currencies:
CONCENTRATION BY CURRENCY | % OF LONG-TERM INVESTMENTS | |||
United States Dollar | 57.2% | |||
Japanese Yen | 10.7 | |||
Australian Dollar | 7.3 | |||
Britain Pound | 6.4 | |||
Euro | 6.4 | |||
Hong Kong Dollar | 5.2 | |||
All other currencies less than 5% | 6.8 | |||
Total | 100.0% |
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices). The Fund adjusted the price of certain foreign equity securities held in its portfolio on September 30, 2014 using adjustment factors designed to reflect more accurately the fair value of the securities. The fair valuation of these securities resulted in their categorization as Level 2 investments.
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 30 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Common Stocks | ||||||||||||||||
Canada | $21,329 | $– | $– | $21,329 | ||||||||||||
Mexico | 6,637 | – | – | 6,637 | ||||||||||||
United States | 443,680 | – | – | 443,680 | ||||||||||||
All Other Countries | – | 329,284 | (1) | – | 329,284 | |||||||||||
Convertible Bonds | – | 5,474 | (1) | – | 5,474 | |||||||||||
Rights | 90 | (1) | – | – | 90 | |||||||||||
Warrants | 55 | (1) | – | – | 55 | |||||||||||
Investment Companies | 42,322 | – | – | 42,322 | ||||||||||||
Total Investments | $514,113 | $334,758 | $– | $848,871 |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 31 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER INTERNATIONAL EQUITY FUND
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 93.8% | ||||||||
Australia – 1.6% | ||||||||
Australia & New Zealand Banking Group Ltd. | 601,579 | $16,255 | ||||||
Beach Energy Ltd. | 4,104,797 | 5,069 | ||||||
BHP Billiton Ltd. ADR | 117,316 | 6,907 | ||||||
CSL Ltd. | 70,311 | 4,557 | ||||||
Flight Centre Travel Group Ltd. | 19,703 | 735 | ||||||
REA Group Ltd. | 27,132 | 1,022 | ||||||
Telstra Corp. Ltd. | 1,284,196 | 5,941 | ||||||
40,486 | ||||||||
Austria – 0.9% | ||||||||
Conwert Immobilien Invest S.E. * | 332,597 | 3,780 | ||||||
Erste Group Bank A.G. | 402,516 | 9,175 | ||||||
Schoeller-Bleckmann Oilfield Equipment A.G. | 92,861 | 9,060 | ||||||
22,015 | ||||||||
Belgium – 0.6% | ||||||||
Anheuser-Busch InBev N.V. | 121,260 | 13,451 | ||||||
Telenet Group Holding N.V. * | 16,245 | 933 | ||||||
14,384 | ||||||||
Bermuda – 0.5% | ||||||||
Everest Re Group Ltd. | 74,985 | 12,148 | ||||||
Brazil – 1.7% | ||||||||
AMBEV S.A. ADR | 746,068 | 4,887 | ||||||
Banco do Brasil S.A. | 520,100 | 5,410 | ||||||
BB Seguridade Participacoes S.A. | 325,100 | 4,289 | ||||||
CETIP S.A. - Mercados Organizados | 70,100 | 870 | ||||||
Cia de Saneamento Basico do Estado de Sao Paulo ADR * | 1,171,000 | 9,497 | ||||||
Cielo S.A. | 191,600 | 3,118 | ||||||
Embraer S.A. ADR | 115,630 | 4,535 | ||||||
Kroton Educacional S.A. | 354,800 | 2,229 | ||||||
Vale S.A. ADR | 887,200 | 9,768 | ||||||
44,603 | ||||||||
Canada – 4.3% | ||||||||
Alimentation Couche Tard, Inc., | 131,960 | 4,219 | ||||||
Barrick Gold Corp. | 116,905 | 1,714 | ||||||
Brookfield Asset Management, Inc., Class A | 72,156 | 3,244 | ||||||
Canadian National Railway Co. | 72,408 | 5,138 | ||||||
Canadian Natural Resources Ltd. | 177,177 | 6,883 | ||||||
Canadian Pacific Railway Ltd. | 23,765 | 4,931 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 93.8% – continued | ||||||||
Canada – 4.3% – continued | ||||||||
CI Financial Corp. | 88,741 | $2,676 | ||||||
Dollarama, Inc. | 11,887 | 1,008 | ||||||
Enbridge, Inc. | 132,327 | 6,334 | ||||||
Encana Corp. | 89,649 | 1,904 | ||||||
Kinross Gold Corp. * | 524,020 | 1,741 | ||||||
Magna International, Inc. | 56,500 | 5,362 | ||||||
Manulife Financial Corp. | 609,200 | 11,727 | ||||||
Methanex Corp. | 72,700 | 4,856 | ||||||
Open Text Corp. | 109,761 | 6,083 | ||||||
Peyto Exploration & Development Corp. | 44,962 | 1,419 | ||||||
Potash Corp. of Saskatchewan, Inc. | 14,942 | 517 | ||||||
Potash Corp. of Saskatchewan, Inc. (New York Exchange) | 93,859 | 3,244 | ||||||
Rogers Communications, Inc., Class B | 104,012 | 3,892 | ||||||
Saputo, Inc. | 87,032 | 2,435 | ||||||
Suncor Energy, Inc. | 214,300 | 7,755 | ||||||
Talisman Energy, Inc. | 560,630 | 4,851 | ||||||
Toronto-Dominion Bank (The) | 110,413 | 5,449 | ||||||
Toronto-Dominion Bank (The) (New York Exchange) | 228,800 | 11,300 | ||||||
Yamana Gold, Inc. | 207,610 | 1,246 | ||||||
109,928 | ||||||||
China – 3.8% | ||||||||
Alibaba Group Holding Ltd. ADR * | 10,785 | 958 | ||||||
Anhui Conch Cement Co. Ltd., Class H | 5,318,700 | 16,996 | ||||||
Baidu, Inc. ADR * | 14,761 | 3,221 | ||||||
China Construction Bank Corp., Class H | 15,145,200 | 10,624 | ||||||
China Oilfield Services Ltd., Class H | 4,209,700 | 11,122 | ||||||
China Petroleum & Chemical Corp., Class H | 11,563,100 | 10,118 | ||||||
China Shipping Container Lines Co. Ltd., Class H * | 14,949,000 | 4,011 | ||||||
Dongfeng Motor Group Co. Ltd., | 562,000 | 925 | ||||||
ENN Energy Holdings Ltd. | 300,000 | 1,963 | ||||||
Industrial & Commercial Bank of China Ltd., Class H | 7,499,000 | 4,680 | ||||||
Lenovo Group Ltd. | 2,356,000 | 3,510 | ||||||
Mindray Medical International Ltd. ADR | 229,407 | 6,919 | ||||||
Ping An Insurance Group Co. of China Ltd., Class H | 268,500 | 2,019 | ||||||
Qihoo 360 Technology Co. Ltd. ADR * | 11,033 | 744 | ||||||
Sihuan Pharmaceutical Holdings Group Ltd. | 1,594,000 | 1,195 | ||||||
Tencent Holdings Ltd. | 286,300 | 4,262 |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 32 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 93.8% – continued | ||||||||
China – 3.8% – continued | ||||||||
Vipshop Holdings Ltd. ADR * | 12,268 | $2,319 | ||||||
Weichai Power Co. Ltd., Class H | 2,148,000 | 7,743 | ||||||
WuXi PharmaTech Cayman, Inc. ADR * | 43,278 | 1,516 | ||||||
YY, Inc. ADR * | 14,950 | 1,120 | ||||||
95,965 | ||||||||
Czech Republic – 0.2% | ||||||||
Komercni Banka A.S. | 21,770 | 5,184 | ||||||
Denmark – 1.4% | ||||||||
Carlsberg A/S, Class B | 113,500 | 10,069 | ||||||
Coloplast A/S, Class B | 27,743 | 2,322 | ||||||
GN Store Nord A/S | 76,176 | 1,677 | ||||||
Novo Nordisk A/S, Class B | 435,908 | 20,770 | ||||||
34,838 | ||||||||
Finland – 0.5% | ||||||||
Kone OYJ, Class B | 73,580 | 2,953 | �� | |||||
Sampo OYJ, Class A | 204,278 | 9,894 | ||||||
12,847 | ||||||||
France – 7.7% | ||||||||
Accor S.A. | 96,377 | 4,254 | ||||||
Air Liquide S.A. | 27,642 | 3,361 | ||||||
AXA S.A. | 848,214 | 20,889 | ||||||
BNP Paribas S.A. | 91,326 | 6,039 | ||||||
Bollore S.A. | 1,588 | 900 | ||||||
Cap Gemini S.A. | 80,527 | 5,768 | ||||||
Carrefour S.A. | 102,974 | 3,173 | ||||||
Cie de St-Gobain | 143,993 | 6,559 | ||||||
Danone S.A. | 194,384 | 12,977 | ||||||
Dassault Systemes S.A. | 25,363 | 1,623 | ||||||
Essilor International S.A. | 107,118 | 11,710 | ||||||
Eurofins Scientific S.E. | 5,194 | 1,339 | ||||||
Hermes International | 2,930 | 875 | ||||||
JCDecaux S.A. | 89,181 | 2,814 | ||||||
Legrand S.A. | 114,341 | 5,931 | ||||||
L’Oreal S.A. | 64,234 | 10,173 | ||||||
LVMH Moet Hennessy Louis Vuitton S.A. | 35,910 | 5,821 | ||||||
Orange S.A. | 387,676 | 5,808 | ||||||
Pernod Ricard S.A. | 80,224 | 9,067 | ||||||
Peugeot S.A. * | 109,254 | 1,396 | ||||||
Plastic Omnium S.A. | 33,565 | 800 | ||||||
Publicis Groupe S.A. | 12,936 | 887 | ||||||
Sanofi | 205,270 | 23,158 | ||||||
Schneider Electric S.E. | 170,967 | 13,073 | ||||||
Societe Generale S.A. | 132,990 | 6,760 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 93.8% – continued | ||||||||
France – 7.7% – continued | ||||||||
Sodexo | 63,738 | $6,221 | ||||||
Technip S.A. | 10,682 | 896 | ||||||
Total S.A. | 109,410 | 7,071 | ||||||
Unibail-Rodamco S.E. | 45,390 | 11,656 | ||||||
Valeo S.A. | 26,010 | 2,885 | ||||||
Vinci S.A. | 30,436 | 1,762 | ||||||
Zodiac Aerospace | 29,086 | 928 | ||||||
196,574 | ||||||||
Germany – 5.3% | ||||||||
adidas A.G. | 65,060 | 4,866 | ||||||
Allianz S.E. (Registered) | 67,589 | 10,950 | ||||||
BASF S.E. | 48,448 | 4,444 | ||||||
Bayer A.G. (Registered) | 63,144 | 8,844 | ||||||
Bayerische Motoren Werke A.G. | 39,045 | 4,192 | ||||||
Brenntag A.G. | 34,051 | 1,672 | ||||||
Continental A.G. | 27,966 | 5,317 | ||||||
Daimler A.G. (Registered) | 145,924 | 11,192 | ||||||
Deutsche Annington Immobilien S.E. | 35,198 | 1,018 | ||||||
Deutsche Boerse A.G. | 212,713 | 14,361 | ||||||
Deutsche Wohnen A.G. (Bearer) | 44,614 | 953 | ||||||
E.ON S.E. | 215,340 | 3,942 | ||||||
Fielmann A.G. | 14,712 | 902 | ||||||
Fresenius Medical Care A.G. & Co. KGaA | 46,110 | 3,220 | ||||||
Fresenius S.E. & Co. KGaA | 88,544 | 4,381 | ||||||
GAGFAH S.A. * | 51,303 | 953 | ||||||
Infineon Technologies A.G. | 231,561 | 2,397 | ||||||
Linde A.G. | 50,700 | 9,743 | ||||||
MorphoSys A.G. * | 11,271 | 1,105 | ||||||
ProSiebenSat.1 Media A.G. (Registered) | 72,741 | 2,895 | ||||||
SAP S.E. | 159,685 | 11,515 | ||||||
Siemens A.G. (Registered) | 150,107 | 17,891 | ||||||
Symrise A.G. | 105,085 | 5,586 | ||||||
Volkswagen A.G. | 3,982 | 826 | ||||||
Wirecard A.G. | 52,564 | 1,942 | ||||||
135,107 | ||||||||
Hong Kong – 2.2% | ||||||||
AIA Group Ltd. | 1,421,200 | 7,335 | ||||||
BOC Hong Kong Holdings Ltd. | 3,723,100 | 11,879 | ||||||
Brilliance China Automotive Holdings Ltd. | 536,000 | 937 | ||||||
Cheung Kong Holdings Ltd. | 533,785 | 8,760 | ||||||
China High Precision Automation Group Ltd. * | 982,000 | 10 | ||||||
China Mobile Ltd. | 1,333,573 | 15,654 | ||||||
Hang Lung Properties Ltd. | 516,000 | 1,466 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 33 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER INTERNATIONAL EQUITY FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 93.8% – continued | ||||||||
Hong Kong – 2.2% – continued | ||||||||
Hong Kong Exchanges and Clearing Ltd. | 68,900 | $1,485 | ||||||
Orient Overseas International Ltd. | 1,512,900 | 8,343 | ||||||
Techtronic Industries Co. | 377,500 | 1,087 | ||||||
56,956 | ||||||||
India – 1.6% | ||||||||
HDFC Bank Ltd. ADR | 125,014 | 5,823 | ||||||
ICICI Bank Ltd. ADR | 439,810 | 21,595 | ||||||
Infosys Ltd. ADR | 56,746 | 3,433 | ||||||
Tata Motors Ltd. ADR | 202,105 | 8,834 | ||||||
WNS Holdings Ltd. ADR * | 107,027 | 2,409 | ||||||
42,094 | ||||||||
Indonesia – 0.5% | ||||||||
Astra International Tbk PT | 2,527,700 | 1,463 | ||||||
Bank Rakyat Indonesia Persero Tbk PT | 7,099,100 | 6,032 | ||||||
Indofood Sukses Makmur Tbk PT | 7,141,800 | 4,092 | ||||||
11,587 | ||||||||
Ireland – 2.5% | ||||||||
Covidien PLC | 116,690 | 10,095 | ||||||
CRH PLC | 300,426 | 6,829 | ||||||
Experian PLC | 57,889 | 920 | ||||||
ICON PLC * | 286,323 | 16,386 | ||||||
Shire PLC | 258,615 | 22,352 | ||||||
Smurfit Kappa Group PLC | 272,105 | 5,938 | ||||||
Smurfit Kappa Group PLC | 70,922 | 1,554 | ||||||
64,074 | ||||||||
Israel – 1.3% | ||||||||
Check Point Software Technologies Ltd. * | 56,495 | 3,912 | ||||||
Israel Chemicals Ltd. | 716,800 | 5,155 | ||||||
Teva Pharmaceutical Industries Ltd. ADR | 461,689 | 24,816 | ||||||
33,883 | ||||||||
Italy – 0.7% | ||||||||
Azimut Holding S.p.A. | 49,275 | 1,236 | ||||||
Banca Generali S.p.A. | 60,891 | 1,604 | ||||||
Intesa Sanpaolo S.p.A. | 4,209,299 | 12,732 | ||||||
Pirelli & C. S.p.A. | 239,376 | 3,305 | ||||||
18,877 | ||||||||
Japan – 13.6% | ||||||||
Amada Co. Ltd. | 407,387 | 3,893 | ||||||
Asahi Group Holdings Ltd. | 63,400 | 1,835 | ||||||
Asahi Kasei Corp. | 586,000 | 4,762 | ||||||
Astellas Pharma, Inc. | 470,000 | 7,005 | ||||||
Bank of Yokohama (The) Ltd. | 1,579,221 | 8,693 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 93.8% – continued | ||||||||
Japan – 13.6% – continued | ||||||||
Daikin Industries Ltd. | 100,600 | $6,243 | ||||||
Daito Trust Construction Co. Ltd. | 27,400 | 3,238 | ||||||
Denso Corp. | 297,500 | 13,727 | ||||||
Dentsu, Inc. | 114,000 | 4,345 | ||||||
FANUC Corp. | 94,020 | 16,979 | ||||||
Fuji Heavy Industries Ltd. | 230,400 | 7,627 | ||||||
Hitachi Ltd. | 3,078,826 | 23,432 | ||||||
Hoya Corp. | 129,800 | 4,363 | ||||||
Inpex Corp. | 349,998 | 4,955 | ||||||
Isuzu Motors Ltd. | 933,700 | 13,208 | ||||||
ITOCHU Corp. | 250,400 | 3,062 | ||||||
Japan Display, Inc. * | 437,824 | 2,121 | ||||||
Japan Tobacco, Inc. | 263,203 | 8,567 | ||||||
Kao Corp. | 117,700 | 4,591 | ||||||
Keyence Corp. | 11,400 | 4,959 | ||||||
Komatsu Ltd. | 463,600 | 10,731 | ||||||
Kyowa Hakko Kirin Co. Ltd. | 345,117 | 4,237 | ||||||
LIXIL Group Corp. | 60,400 | 1,291 | ||||||
M3, Inc. | 66,500 | 1,068 | ||||||
Minebea Co. Ltd. | 150,343 | 2,053 | ||||||
Mitsubishi Corp. | 382,954 | 7,849 | ||||||
Mitsubishi Estate Co. Ltd. | 9,000 | 203 | ||||||
Mitsubishi UFJ Financial Group, Inc. | 2,089,015 | 11,825 | ||||||
Mitsui & Co. Ltd. | 696,200 | 10,986 | ||||||
Mizuho Financial Group, Inc. | 5,347,200 | 9,557 | ||||||
MS&AD Insurance Group Holdings, Inc. | 290,816 | 6,352 | ||||||
Murata Manufacturing Co. Ltd. | 50,600 | 5,759 | ||||||
Nidec Corp. | 40,400 | 2,735 | ||||||
Nintendo Co. Ltd. | 31,836 | 3,465 | ||||||
Nippon Paint Holdings Co. Ltd. | 74,000 | 1,667 | ||||||
Nippon Steel & Sumitomo Metal Corp. | 2,382,900 | 6,190 | ||||||
Nitori Holdings Co. Ltd. | 32,600 | 2,020 | ||||||
Nitto Denko Corp. | 102,400 | 5,621 | ||||||
Omron Corp. | 66,000 | 3,001 | ||||||
ORIX Corp. | 465,300 | 6,426 | ||||||
Otsuka Corp. | 22,400 | 891 | ||||||
Ryohin Keikaku Co. Ltd. | 14,300 | 1,705 | ||||||
SCSK Corp. | 35,000 | 941 | ||||||
Secom Co. Ltd. | 218,500 | 13,028 | ||||||
Seiko Epson Corp. | 37,700 | 1,813 | ||||||
SMC Corp. | 63,955 | 17,661 | ||||||
Sompo Japan Nipponkoa Holdings, Inc. | 116,949 | 2,842 | ||||||
Start Today Co. Ltd. | 53,900 | 1,167 | ||||||
Sugi Holdings Co. Ltd. | 47,145 | 1,980 |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 34 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 93.8% – continued | ||||||||
Japan – 13.6% – continued | ||||||||
Sumitomo Mitsui Financial Group, Inc. | 204,500 | $8,345 | ||||||
Sumitomo Mitsui Trust Holdings, Inc. | 1,954,201 | 8,143 | ||||||
Sumitomo Realty & Development Co. Ltd. | 99,000 | 3,527 | ||||||
Suruga Bank Ltd. | 147,000 | 2,932 | ||||||
Suzuki Motor Corp. | 258,715 | 8,585 | ||||||
Sysmex Corp. | 66,700 | 2,682 | ||||||
Tadano Ltd. | 18,000 | 330 | ||||||
Temp Holdings Co. Ltd. | 29,200 | 887 | ||||||
THK Co. Ltd. | 176,879 | 4,408 | ||||||
Tokio Marine Holdings, Inc. | 402,316 | 12,493 | ||||||
Tsuruha Holdings, Inc. | 24,200 | 1,347 | ||||||
346,348 | ||||||||
Malaysia – 0.2% | ||||||||
Genting Bhd. | 1,371,800 | 3,968 | ||||||
Mexico – 0.4% | ||||||||
Arca Continental S.A.B. de C.V. | 134,016 | 920 | ||||||
Cemex S.A.B. de C.V., Series CPO * | 707,400 | 922 | ||||||
Fibra Uno Administracion S.A. de C.V. | 459,500 | 1,512 | ||||||
Grupo Televisa S.A.B. ADR | 227,078 | 7,693 | ||||||
11,047 | ||||||||
Netherlands – 2.7% | ||||||||
Core Laboratories N.V. | 104,919 | 15,355 | ||||||
Heineken N.V. | 224,348 | 16,755 | ||||||
ING Groep N.V. - CVA * | 219,920 | 3,128 | ||||||
NXP Semiconductor N.V. * | 72,008 | 4,928 | ||||||
Royal Dutch Shell PLC, Class A | 737,462 | 28,148 | ||||||
68,314 | ||||||||
New Zealand – 0.0% | ||||||||
Ryman Healthcare Ltd. | 122,843 | 749 | ||||||
Norway – 2.1% | ||||||||
DNB ASA | 729,293 | 13,639 | ||||||
Gjensidige Forsikring ASA | 54,765 | 1,158 | ||||||
Norsk Hydro ASA | 1,263,117 | 7,037 | ||||||
Statoil ASA | 412,500 | 11,223 | ||||||
Statoil ASA ADR | 334,423 | 9,083 | ||||||
Telenor ASA | 467,344 | 10,255 | ||||||
52,395 | ||||||||
Peru – 0.1% | ||||||||
Credicorp Ltd. | 16,173 | 2,481 | ||||||
Russia – 0.7% | ||||||||
Lukoil OAO ADR | 193,500 | 9,849 | ||||||
Mobile Telesystems OJSC ADR | 289,100 | 4,319 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 93.8% – continued | ||||||||
Russia – 0.7% – continued | ||||||||
Sberbank of Russia ADR | 615,210 | $4,841 | ||||||
19,009 | ||||||||
Singapore – 1.7% | ||||||||
Biosensors International Group Ltd. * | 3,850,790 | 2,173 | ||||||
DBS Group Holdings Ltd. | 508,000 | 7,324 | ||||||
Golden Agri-Resources Ltd. | 34,917,242 | 14,077 | ||||||
United Overseas Bank Ltd. | 1,087,002 | 19,047 | ||||||
42,621 | ||||||||
South Africa – 1.0% | ||||||||
Bidvest Group Ltd. | 59,573 | 1,505 | ||||||
MTN Group Ltd. | 315,505 | 6,649 | ||||||
Sasol Ltd. ADR | 311,100 | 16,952 | ||||||
25,106 | ||||||||
South Korea – 1.2% | ||||||||
Coway Co. Ltd. | 13,757 | 1,095 | ||||||
Hyundai Mobis Co. Ltd. | 30,502 | 7,433 | ||||||
Hyundai Motor Co. | 16,530 | 2,981 | ||||||
KB Financial Group, Inc. ADR | 41,510 | 1,503 | ||||||
NAVER Corp. | 2,116 | 1,604 | ||||||
POSCO | 22,290 | 6,832 | ||||||
Samsung Electronics Co. Ltd. | 4,729 | 5,294 | ||||||
Samsung Electronics Co. Ltd. GDR (London Exchange) (1)(2) | 2,189 | 1,223 | ||||||
Samsung Electronics Co. Ltd. GDR (OTC Exchange) (1)(2) | 2,791 | 1,566 | ||||||
SK Hynix, Inc. * | 49,970 | 2,212 | ||||||
31,743 | ||||||||
Spain – 2.3% | ||||||||
Abertis Infraestructuras S.A. | 108,933 | 2,144 | ||||||
Amadeus IT Holding S.A., Class A | 414,028 | 15,422 | ||||||
Banco Bilbao Vizcaya Argentaria S.A. | 1,731,178 | 20,736 | ||||||
Banco Santander S.A. | 873,584 | 8,357 | ||||||
Bankinter S.A. | 371,943 | 3,126 | ||||||
Grifols S.A. | 33,829 | 1,376 | ||||||
Inditex S.A. | 33,443 | 921 | ||||||
Mapfre S.A. | 277,283 | 979 | ||||||
Repsol S.A. | 216,960 | 5,135 | ||||||
58,196 | ||||||||
Sweden – 2.3% | ||||||||
Atlas Copco AB, Class A | 506,674 | 14,483 | ||||||
Getinge AB, Class B | 376,136 | 9,463 | ||||||
Hennes & Mauritz AB, Class B | 51,600 | 2,141 | ||||||
Hexagon AB, Class B | 28,966 | 916 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 35 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER INTERNATIONAL EQUITY FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 93.8% – continued | ||||||||
Sweden – 2.3% – continued | ||||||||
Hexpol AB | 10,274 | $818 | ||||||
Intrum Justitia AB | 31,945 | 898 | ||||||
Investor AB, Class B | 208,591 | 7,338 | ||||||
Sandvik AB | 317,686 | 3,563 | ||||||
Svenska Cellulosa AB S.C.A., Class B | 250,900 | 5,966 | ||||||
Swedbank AB, Class A | 130,173 | 3,261 | ||||||
Telefonaktiebolaget LM Ericsson, | 393,901 | 4,972 | ||||||
Volvo AB, Class B | 526,311 | 5,682 | ||||||
59,501 | ||||||||
Switzerland – 8.6% | ||||||||
ABB Ltd. (Registered) * | 349,267 | 7,815 | ||||||
Actelion Ltd. (Registered) * | 33,027 | 3,872 | ||||||
Adecco S.A. (Registered) * | 30,522 | 2,059 | ||||||
Burckhardt Compression Holding A.G. | 1,624 | 750 | ||||||
Cie Financiere Richemont S.A. (Registered) | 110,200 | 9,031 | ||||||
Clariant A.G. (Registered) * | 154,257 | 2,630 | ||||||
Credit Suisse Group A.G. ADR * | 217,071 | 6,000 | ||||||
Foster Wheeler A.G. | 125,295 | 3,962 | ||||||
Geberit A.G. (Registered) | 7,982 | 2,571 | ||||||
Holcim Ltd. (Registered) * | 104,269 | 7,566 | ||||||
Nestle S.A. (Registered) | 336,240 | 24,663 | ||||||
Novartis A.G. (Registered) | 358,655 | 33,777 | ||||||
Novartis A.G. ADR | 126,314 | 11,890 | ||||||
Partners Group Holding A.G. | 14,394 | 3,791 | ||||||
Roche Holding A.G. (Genusschein) | 155,127 | 45,933 | ||||||
Sika A.G. (Bearer) | 267 | 922 | ||||||
Sonova Holding A.G. (Registered) | 16,291 | 2,600 | ||||||
Straumann Holding A.G. (Registered) | 4,843 | 1,098 | ||||||
Swatch Group (The) A.G. (Bearer) | 13,968 | 6,618 | ||||||
Syngenta A.G. (Registered) | 20,448 | 6,490 | ||||||
Transocean Ltd. | 190,439 | 6,088 | ||||||
UBS A.G. (Registered) * | 722,099 | 12,529 | ||||||
Zurich Insurance Group A.G. * | 56,214 | 16,716 | ||||||
219,371 | ||||||||
Taiwan – 1.0% | ||||||||
Advanced Semiconductor Engineering, Inc. | 9,375,415 | 10,944 | ||||||
Delta Electronics, Inc. | 93,000 | 587 | ||||||
Fubon Financial Holding Co. Ltd. | 1,676,000 | 2,569 | ||||||
Largan Precision Co. Ltd. | 16,000 | 1,142 | ||||||
MediaTek, Inc. | 129,000 | 1,911 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. ADR | 442,489 | 8,929 | ||||||
26,082 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 93.8% – continued | ||||||||
Thailand – 0.1% | ||||||||
Kasikornbank PCL (Registered) | 230,400 | $1,668 | ||||||
Turkey – 0.7% | ||||||||
Akbank T.A.S. | 1,914,240 | 6,230 | ||||||
KOC Holding A.S. ADR | 257,100 | 5,934 | ||||||
Turkiye Garanti Bankasi A.S. | 1,609,816 | 5,648 | ||||||
17,812 | ||||||||
United Arab Emirates – 0.1% | ||||||||
Dragon Oil PLC | 171,910 | 1,662 | ||||||
Emaar Properties PJSC | 559,457 | 1,753 | ||||||
3,415 | ||||||||
United Kingdom – 15.4% | ||||||||
Anglo American PLC | 203,296 | 4,527 | ||||||
ARM Holdings PLC ADR | 397,761 | 17,378 | ||||||
Ashtead Group PLC | 116,921 | 1,963 | ||||||
Babcock International Group PLC | 184,946 | 3,258 | ||||||
BAE Systems PLC | 1,508,744 | 11,529 | ||||||
Barclays PLC | 1,546,475 | 5,697 | ||||||
BG Group PLC | 647,122 | 11,904 | ||||||
BP PLC ADR | 69,624 | 3,060 | ||||||
British Sky Broadcasting Group PLC | 427,144 | 6,075 | ||||||
BT Group PLC | 1,308,324 | 8,014 | ||||||
BTG PLC * | 140,072 | 1,589 | ||||||
Bunzl PLC | 118,814 | 3,087 | ||||||
Capita PLC | 223,470 | 4,201 | ||||||
Centrica PLC | 2,366,800 | 11,769 | ||||||
Compass Group PLC | 219,941 | 3,552 | ||||||
Countrywide PLC | 98,843 | 720 | ||||||
Derwent London PLC | 20,787 | 916 | ||||||
Diageo PLC | 1,109,488 | 32,080 | ||||||
easyJet PLC | 190,740 | 4,373 | ||||||
Ensco PLC, Class A | 97,500 | 4,028 | ||||||
Genel Energy PLC * | 95,408 | 1,290 | ||||||
GlaxoSmithKline PLC | 434,727 | 9,950 | ||||||
Glencore PLC * | 3,833,170 | 21,209 | ||||||
Halma PLC | 159,801 | 1,578 | ||||||
Hikma Pharmaceuticals PLC | 32,727 | 917 | ||||||
Hiscox Ltd. * | 93,848 | 958 | ||||||
HSBC Holdings PLC | 2,171,282 | 22,098 | ||||||
HSBC Holdings PLC (Hong Kong Exchange) | 86,526 | 885 | ||||||
IMI PLC | 95,750 | 1,901 | ||||||
Imperial Tobacco Group PLC | 270,600 | 11,640 | ||||||
InterContinental Hotels Group PLC | 44,295 | 1,708 |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 36 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 93.8% – continued | ||||||||
United Kingdom – 15.4% – continued |
| |||||||
ITV PLC | 1,871,328 | $6,293 | ||||||
Lloyds Banking Group PLC * | 13,106,641 | 16,241 | ||||||
Marks & Spencer Group PLC | 732,800 | 4,787 | ||||||
Next PLC | 34,365 | 3,679 | ||||||
Noble Corp. PLC | 192,340 | 4,274 | ||||||
Pearson PLC | 286,139 | 5,748 | ||||||
Persimmon PLC * | 552,817 | 11,882 | ||||||
Provident Financial PLC | 28,117 | 971 | ||||||
Prudential PLC | 470,932 | 10,460 | ||||||
Reckitt Benckiser Group PLC | 196,802 | 17,034 | ||||||
Rio Tinto PLC | 270,301 | 13,271 | ||||||
Rio Tinto PLC ADR | 169,322 | 8,327 | ||||||
Rolls-Royce Holdings PLC * | 741,382 | 11,492 | ||||||
Sage Group (The) PLC | 913,469 | 5,400 | ||||||
St. James’s Place PLC | 68,053 | 800 | ||||||
Standard Chartered PLC | 353,185 | 6,506 | ||||||
Subsea 7 S.A. | 476,798 | 6,801 | ||||||
Tesco PLC | 1,692,400 | 5,063 | ||||||
Unilever PLC | 340,920 | 14,230 | ||||||
Vodafone Group PLC ADR | 238,331 | 7,839 | ||||||
Whitbread PLC | 62,407 | 4,201 | ||||||
Willis Group Holdings PLC | 245,785 | 10,175 | ||||||
WPP PLC | 251,143 | 5,023 | ||||||
394,351 | ||||||||
United States – 2.3% | ||||||||
Aon PLC | 74,957 | 6,572 | ||||||
Axis Capital Holdings Ltd. | 255,600 | 12,098 | ||||||
Carnival Corp. | 401,124 | 16,113 | ||||||
Freeport-McMoRan, Inc. | 266,023 | 8,686 | ||||||
Genpact Ltd. * | 196,880 | 3,213 | ||||||
Philip Morris International, Inc. | 81,600 | 6,805 | ||||||
RenaissanceRe Holdings Ltd. | 62,100 | 6,209 | ||||||
59,696 | ||||||||
Total Common Stocks (3) | ||||||||
(Cost $2,089,211) | 2,395,423 | |||||||
PREFERRED STOCKS – 2.4% | ||||||||
Brazil – 1.3% |
| |||||||
Banco Bradesco S.A. | 254,050 | 3,633 | ||||||
Banco Bradesco S.A. ADR | 1,038,732 | 14,802 | ||||||
Cia Paranaense de Energia ADR | 669,400 | 9,151 | ||||||
Itau Unibanco Holding S.A. | 160,180 | 2,234 |
NUMBER OF SHARES | VALUE (000s) | |||||||
PREFERRED STOCKS – 2.4% – continued | ||||||||
Brazil – 1.3% – continued |
| |||||||
Itau Unibanco Holding S.A. ADR | 253,485 | $3,518 | ||||||
33,338 | ||||||||
Colombia – 0.2% |
| |||||||
Bancolombia S.A. ADR | 105,221 | 5,968 | ||||||
Germany – 0.9% |
| |||||||
Henkel A.G. & Co. KGaA | 43,388 | 4,333 | ||||||
Volkswagen A.G. | 83,697 | 17,376 | ||||||
21,709 | ||||||||
Total Preferred Stocks (3) | ||||||||
(Cost $64,229) | 61,015 | |||||||
RIGHTS – 0.0% | ||||||||
Spain – 0.0% | ||||||||
Banco Bilbao Vizcaya Argentaria S.A.* | 1,765,499 | 176 | ||||||
Total Rights (3) | ||||||||
(Cost $179) | 176 | |||||||
INVESTMENT COMPANIES – 2.8% | ||||||||
iShares MSCI United Kingdom ETF | 192,168 | 3,724 | ||||||
Northern Institutional Funds – Diversified Assets Portfolio, 0.01% (4)(5) | 67,414,883 | 67,415 | ||||||
Total Investment Companies (3) | ||||||||
(Cost $70,638) | 71,139 | |||||||
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
SHORT-TERM INVESTMENTS – 0.0% | ||||||||
U.S. Treasury Bill, | $200 | $200 | ||||||
Total Short-Term Investments | ||||||||
(Cost $200) | 200 | |||||||
Total Investments – 99.0% | ||||||||
(Cost $2,224,457) | 2,527,953 | |||||||
Other Assets less Liabilities – 1.0% | 25,940 | |||||||
NET ASSETS – 100.0% | $2,553,893 |
(1) | Restricted security that has been deemed illiquid. At September 30, 2014, the value of these restricted illiquid securities amounted to approximately $2,789,000 or 0.11% of net assets. Additional information on each restricted illiquid security is as follows: |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 37 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER INTERNATIONAL EQUITY FUND continued
SECURITY | ACQUISITION AND ENFORCEABLE DATE | ACQUISITION (000s) | ||||||
Samsung Electronics Co. Ltd. GDR (London Exchange) | 8/29/14-9/17/14 | $1,320 | ||||||
Samsung Electronics Co. Ltd. GDR (OTC Exchange) | 8/27/14-9/18/14 | 1,671 |
(2) | 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. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Trustees of Northern Funds. |
(3) | In accordance with the Fund’s prospectus, adjustment factors were provided by an independent evaluation service to determine the value of certain foreign securities. |
(4) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
(5) | At March 31, 2014, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $102,726,000 with net sales of approximately $35,311,000 during the six months ended September 30, 2014. |
(6) | Security pledged as collateral to cover margin requirements for open futures contracts. |
* | Non-Income Producing Security |
Percentages shown are based on Net Assets.
At September 30, 2014, the Fund had open futures contracts as follows:
TYPE | NUMBER OF CONTRACTS | NOTIONAL AMOUNT (000s) | CONTRACT POSITION | CONTRACT EXP. | UNREALIZED GAINS (LOSSES) (000s) | |||||||||||||||
Mini MSCI EAFE Index | 296 | $27,228 | Long | 12/14 | $38 |
At September 30, 2014, the industry sectors for the Fund were:
INDUSTRY SECTOR | % OF LONG-TERM INVESTMENTS | |||
Consumer Discretionary | 10.8% | |||
Consumer Staples | 10.0 | |||
Energy | 8.6 | |||
Financials | 26.3 | |||
Health Care | 12.5 | |||
Industrials | 11.5 | |||
Information Technology | 8.0 | |||
Materials | 8.0 | |||
Telecommunication Services | 2.8 | |||
Utilities | 1.5 | |||
Total | 100.0% |
At September 30, 2014, the Fund’s investments were denominated in the following currencies :
CONCENTRATION BY CURRENCY | % OF LONG-TERM INVESTMENTS | |||
Euro | 21.5% | |||
United States Dollar | 20.9 | |||
British Pound | 14.4 | |||
Japanese Yen | 14.1 | |||
Swiss Franc | 7.8 | |||
Hong Kong Dollar | 5.6 | |||
All other currencies less than 5% | 15.7 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices). The Fund adjusted the price of certain foreign equity securities held in its portfolio on September 30, 2014 using adjustment factors designed to reflect more accurately the fair value of the securities. The fair valuation of these securities resulted in their categorization as Level 2 investments.
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Common Stocks | ||||||||||||||||
Australia | $6,907 | $33,579 | $– | $40,486 | ||||||||||||
Bermuda | 12,148 | – | – | 12,148 | ||||||||||||
Brazil | 44,603 | – | – | 44,603 | ||||||||||||
Canada | 109,928 | – | – | 109,928 | ||||||||||||
China | 16,797 | 79,168 | – | 95,965 | ||||||||||||
Hong Kong | – | 56,946 | 10 | 56,956 | ||||||||||||
India | 42,094 | – | – | 42,094 | ||||||||||||
Ireland | 26,481 | 37,593 | – | 64,074 | ||||||||||||
Israel | 28,727 | 5,156 | – | 33,883 | ||||||||||||
Mexico | 11,047 | – | – | 11,047 | ||||||||||||
Netherlands | 20,283 | 48,031 | – | 68,314 | ||||||||||||
Norway | 9,083 | 43,312 | – | 52,395 | ||||||||||||
Peru | 2,481 | – | – | 2,481 | ||||||||||||
Russia | 19,009 | – | – | 19,009 | ||||||||||||
South Africa | 16,952 | 8,154 | – | 25,106 | ||||||||||||
South Korea | 1,503 | 30,240 | – | 31,743 | ||||||||||||
Switzerland | 27,940 | 191,431 | – | 219,371 | ||||||||||||
Taiwan | 8,929 | 17,153 | – | 26,082 | ||||||||||||
Turkey | 5,934 | 11,878 | – | 17,812 | ||||||||||||
United Kingdom | 55,081 | 339,270 | – | 394,351 | ||||||||||||
United States | 59,696 | – | – | 59,696 | ||||||||||||
All Other Countries | – | 967,879 | (1) | – | 967,879 |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 38 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Preferred Stocks | ||||||||||||||||
Germany | $– | $21,709 | $– | $21,709 | ||||||||||||
All Other Countries | 39,306 | (1) | – | – | 39,306 | |||||||||||
Rights | 176 | (1) | – | – | 176 | |||||||||||
Investment Companies | 71,139 | – | – | 71,139 | ||||||||||||
Short-Term Investments | – | 200 | – | 200 | ||||||||||||
Total Investments | $636,244 | $1,891,699 | $10 | $2,527,953 | ||||||||||||
OTHER FINANCIAL INSTRUMENTS |
| |||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $38 | $– | $– | $38 |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:
BALANCE AS OF 3/31/14 (000s) | REALIZED GAINS (LOSSES) (000s) | CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) (000s) | PURCHASES (000s) | SALES (000s) | TRANSFERS LEVEL 3 | TRANSFERS OUT OF LEVEL 3 (000s) | BALANCE AS OF 9/30/14 (000s) | CHANGE IN UNREALIZED (000s) | ||||||||||||||||||||||||||||
Common Stocks | ||||||||||||||||||||||||||||||||||||
Hong Kong | $ | 10 | $ | – | $ | – | $ | – | $ | – | $ | – | $ | – | $ | 10 | $ | – |
The Fund valued the securities included in the balance as of 9/30/14 above using prices provided by the Asset Management PVC.
FAIR VALUE AT 9/30/14 (000s) | VALUATION TECHNIQUES | UNOBSERVABLE INPUTS | ||||||
Common Stock | $10 | Consensus Pricing | Distressed/ Defaulted Market Discount, Estimated Recovery Value |
The unobservable inputs are reviewed and compared to publicly available information for reasonableness. Values are reviewed based on available restructuring and recovery information. Values are compared to historical averages and general sector trends are taken into account. In general, an increase (decrease) in recovery or reduction (increase) in dilution would, in isolation, result in a significantly higher (lower) fair value measurement.
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 39 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER LARGE CAP FUND
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.1% | ||||||||
Aerospace & Defense – 3.2% |
| |||||||
Boeing (The) Co. | 19,065 | $2,428 | ||||||
Northrop Grumman Corp. | 67,300 | 8,867 | ||||||
Precision Castparts Corp. | 10,005 | 2,370 | ||||||
Raytheon Co. | 53,400 | 5,427 | ||||||
19,092 | ||||||||
Apparel & Textile Products – 3.0% |
| |||||||
Michael Kors Holdings Ltd. * | 99,301 | 7,089 | ||||||
NIKE, Inc., Class B | 103,144 | 9,201 | ||||||
Under Armour, Inc., Class A * | 30,799 | 2,128 | ||||||
18,418 | ||||||||
Automotive – 1.1% |
| |||||||
Johnson Controls, Inc. | 115,200 | 5,069 | ||||||
Tesla Motors, Inc. * | 7,330 | 1,779 | ||||||
6,848 | ||||||||
Banking – 4.0% |
| |||||||
Bank of America Corp. | 367,300 | 6,262 | ||||||
BB&T Corp. | 147,100 | 5,474 | ||||||
Citigroup, Inc. | 105,300 | 5,457 | ||||||
JPMorgan Chase & Co. | 90,700 | 5,464 | ||||||
SunTrust Banks, Inc. | 44,400 | 1,688 | ||||||
24,345 | ||||||||
Biotechnology & Pharmaceuticals – 12.8% |
| |||||||
Actavis PLC * | 9,431 | 2,275 | ||||||
Alexion Pharmaceuticals, Inc. * | 16,438 | 2,726 | ||||||
Allergan, Inc. | 8,004 | 1,426 | ||||||
Biogen Idec, Inc. * | 28,969 | 9,583 | ||||||
Bristol-Myers Squibb Co. | 52,123 | 2,668 | ||||||
Celgene Corp. * | 90,470 | 8,575 | ||||||
Eli Lilly & Co. | 92,300 | 5,986 | ||||||
Gilead Sciences, Inc. * | 84,883 | 9,036 | ||||||
Johnson & Johnson | 50,000 | 5,329 | ||||||
Merck & Co., Inc. | 219,669 | 13,022 | ||||||
Novo Nordisk A/S ADR | 60,993 | 2,904 | ||||||
Pfizer, Inc. | 378,465 | 11,191 | ||||||
Vertex Pharmaceuticals, Inc. * | 22,417 | 2,518 | ||||||
77,239 | ||||||||
Chemicals – 1.6% |
| |||||||
BASF S.E. ADR | 17,100 | 1,566 | ||||||
E.I. du Pont de Nemours & Co. | 74,600 | 5,353 | ||||||
Monsanto Co. | 23,499 | 2,644 | ||||||
9,563 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.1% – continued | ||||||||
Consumer Products – 6.4% |
| |||||||
Archer-Daniels-Midland Co. | 106,000 | $5,417 | ||||||
Coca-Cola (The) Co. | 20,000 | 853 | ||||||
ConAgra Foods, Inc. | 47,400 | 1,566 | ||||||
Estee Lauder (The) Cos., Inc., Class A | 79,283 | 5,924 | ||||||
Herbalife Ltd. | 124,476 | 5,446 | ||||||
Kraft Foods Group, Inc. | 93,900 | 5,296 | ||||||
Mondelez International, Inc., Class A | 203,855 | 6,985 | ||||||
Philip Morris International, Inc. | 70,600 | 5,888 | ||||||
Tyson Foods, Inc., Class A | 42,000 | 1,653 | ||||||
39,028 | ||||||||
Electrical Equipment – 0.2% |
| |||||||
TE Connectivity Ltd. | 24,300 | 1,344 | ||||||
Engineering & Construction Services – 0.9% |
| |||||||
Fluor Corp. | 20,200 | 1,349 | ||||||
KBR, Inc. | 205,300 | 3,866 | ||||||
5,215 | ||||||||
Gaming, Lodging & Restaurants – 1.2% |
| |||||||
Chipotle Mexican Grill, Inc. * | 2,673 | 1,782 | ||||||
Dunkin’ Brands Group, Inc. | 24,046 | 1,078 | ||||||
Las Vegas Sands Corp. | 11,944 | 743 | ||||||
Marriott International, Inc., Class A | 28,565 | 1,996 | ||||||
Starbucks Corp. | 23,640 | 1,784 | ||||||
7,383 | ||||||||
Hardware – 4.7% |
| |||||||
Apple, Inc. | 139,632 | 14,068 | ||||||
Cisco Systems, Inc. | 216,300 | 5,444 | ||||||
EMC Corp. | 203,786 | 5,963 | ||||||
Hewlett-Packard Co. | 85,000 | 3,015 | ||||||
28,490 | ||||||||
Health Care Facilities & Services – 3.7% |
| |||||||
Cardinal Health, Inc. | 70,300 | 5,267 | ||||||
Express Scripts Holding Co. * | 80,860 | 5,711 | ||||||
HCA Holdings, Inc. * | 88,905 | 6,270 | ||||||
Quest Diagnostics, Inc. | 88,800 | 5,388 | ||||||
22,636 | ||||||||
Home & Office Products – 0.4% |
| |||||||
Lennar Corp., Class B | 44,264 | 1,419 | ||||||
Tupperware Brands Corp. | 18,100 | 1,250 | ||||||
2,669 | ||||||||
Institutional Financial Services – 1.5% |
| |||||||
Bank of New York Mellon (The) Corp. | 140,900 | 5,457 |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 40 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.1% – continued | ||||||||
Institutional Financial Services – 1.5% – continued |
| |||||||
Goldman Sachs Group (The), Inc. | 10,146 | $1,862 | ||||||
Morgan Stanley | 53,737 | 1,858 | ||||||
9,177 | ||||||||
Insurance – 4.5% |
| |||||||
Allstate (The) Corp. | 91,200 | 5,597 | ||||||
American International Group, Inc. | 74,400 | 4,019 | ||||||
CNO Financial Group, Inc. | 499,000 | 8,463 | ||||||
Marsh & McLennan Cos., Inc. | 106,300 | 5,564 | ||||||
Voya Financial, Inc. | 57,900 | 2,264 | ||||||
XL Group PLC | 33,800 | 1,121 | ||||||
27,028 | ||||||||
Iron & Steel – 0.4% |
| |||||||
Carpenter Technology Corp. | 59,400 | 2,682 | ||||||
Machinery – 0.1% |
| |||||||
Flowserve Corp. | 9,900 | 698 | ||||||
Media – 6.9% |
| |||||||
Aimia, Inc. | 149,200 | 2,254 | ||||||
Comcast Corp., Class A | 111,258 | 5,983 | ||||||
Discovery Communications, Inc., Class A * | 18,751 | 709 | ||||||
Discovery Communications, Inc., Class C * | 17,764 | 662 | ||||||
Facebook, Inc., Class A * | 66,189 | 5,232 | ||||||
Google, Inc., Class A * | 5,527 | 3,252 | ||||||
Google, Inc., Class C * | 5,636 | 3,254 | ||||||
LinkedIn Corp., Class A * | 12,576 | 2,613 | ||||||
Pandora Media, Inc. * | 17,363 | 420 | ||||||
Priceline Group (The), Inc. * | 2,530 | 2,931 | ||||||
TripAdvisor, Inc. * | 14,738 | 1,347 | ||||||
Twenty-First Century Fox, Inc., Class A | 62,510 | 2,144 | ||||||
Twitter, Inc. * | 38,037 | 1,962 | ||||||
Walt Disney (The) Co. | 96,256 | 8,570 | ||||||
Youku Tudou, Inc. ADR * | 9,276 | 166 | ||||||
41,499 | ||||||||
Medical Equipment & Devices – 1.6% |
| |||||||
Abbott Laboratories | 48,036 | 1,998 | ||||||
Baxter International, Inc. | 73,200 | 5,253 | ||||||
Illumina, Inc. * | 13,371 | 2,192 | ||||||
9,443 | ||||||||
Metals & Mining – 0.3% |
| |||||||
Alcoa, Inc. | 110,700 | 1,781 | ||||||
Oil, Gas & Coal – 8.7% | ||||||||
BP PLC ADR | 66,900 | 2,940 | ||||||
Chesapeake Energy Corp. | 60,700 | 1,396 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.1% – continued | ||||||||
Oil, Gas & Coal – 8.7% – continued |
| |||||||
Chevron Corp. | 41,700 | $4,976 | ||||||
Concho Resources, Inc. * | 15,337 | 1,923 | ||||||
ConocoPhillips | 88,600 | 6,780 | ||||||
Ensco PLC, Class A | 178,600 | 7,378 | ||||||
EOG Resources, Inc. | 18,218 | 1,804 | ||||||
Exxon Mobil Corp. | 33,000 | 3,104 | ||||||
Halliburton Co. | 77,600 | 5,006 | ||||||
Marathon Oil Corp. | 137,600 | 5,172 | ||||||
Occidental Petroleum Corp. | 56,000 | 5,384 | ||||||
Royal Dutch Shell PLC ADR | 41,100 | 3,129 | ||||||
Schlumberger Ltd. | 33,072 | 3,363 | ||||||
52,355 | ||||||||
Real Estate Investment Trusts – 0.3% |
| |||||||
American Tower Corp. | 17,098 | 1,601 | ||||||
Retail – Consumer Staples – 3.8% |
| |||||||
Costco Wholesale Corp. | 70,867 | 8,881 | ||||||
CVS Health Corp. | 146,237 | 11,639 | ||||||
Wal-Mart Stores, Inc. | 34,600 | 2,646 | ||||||
23,166 | ||||||||
Retail – Discretionary – 6.6% |
| |||||||
Alibaba Group Holding Ltd. ADR * | 14,660 | 1,302 | ||||||
Amazon.com, Inc. * | 11,959 | 3,856 | ||||||
eBay, Inc. * | 108,137 | 6,124 | ||||||
Home Depot (The), Inc. | 9,500 | 871 | ||||||
Inditex S.A. ADR | 161,703 | 2,206 | ||||||
Lowe’s Cos., Inc. | 100,900 | 5,340 | ||||||
Netflix, Inc. * | 4,958 | 2,237 | ||||||
Nordstrom, Inc. | 87,971 | 6,014 | ||||||
O’Reilly Automotive, Inc. * | 9,728 | 1,463 | ||||||
Tiffany & Co. | 17,648 | 1,700 | ||||||
TJX (The) Cos., Inc. | 144,053 | 8,524 | ||||||
39,637 | ||||||||
Semiconductors – 3.0% |
| |||||||
ARM Holdings PLC ADR | 29,666 | 1,296 | ||||||
Broadcom Corp., Class A | 132,800 | 5,368 | ||||||
Intel Corp. | 161,700 | 5,630 | ||||||
QUALCOMM, Inc. | 78,420 | 5,864 | ||||||
18,158 | ||||||||
Software – 5.9% |
| |||||||
Adobe Systems, Inc. * | 113,098 | 7,825 | ||||||
CA, Inc. | 242,900 | 6,787 | ||||||
FireEye, Inc. * | 22,176 | 678 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 41 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER LARGE CAP FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.1% – continued | ||||||||
Software – 5.9% – continued |
| |||||||
Microsoft Corp. | 97,800 | $4,534 | ||||||
Oracle Corp. | 173,166 | 6,629 | ||||||
Red Hat, Inc. * | 36,205 | 2,033 | ||||||
salesforce.com, Inc. * | 42,931 | 2,470 | ||||||
Splunk, Inc. * | 23,725 | 1,313 | ||||||
Tableau Software, Inc., Class A * | 6,217 | 452 | ||||||
VMware, Inc., Class A * | 17,423 | 1,635 | ||||||
Workday, Inc., Class A * | 16,114 | 1,329 | ||||||
35,685 | ||||||||
Specialty Finance – 2.2% |
| |||||||
Ally Financial, Inc. * | 89,700 | 2,076 | ||||||
Cash America International, Inc. | 24,200 | 1,060 | ||||||
MasterCard, Inc., Class A | 76,165 | 5,630 | ||||||
Visa, Inc., Class A | 15,150 | 3,232 | ||||||
Western Union (The) Co. | 66,600 | 1,068 | ||||||
13,066 | ||||||||
Technology Services – 0.9% |
| |||||||
Xerox Corp. | 400,300 | 5,296 | ||||||
Telecom – 2.1% |
| |||||||
AT&T, Inc. | 151,100 | 5,325 | ||||||
Verizon Communications, Inc. | 121,578 | 6,077 | ||||||
Vodafone Group PLC ADR | 35,445 | 1,166 | ||||||
12,568 | ||||||||
Transportation & Logistics – 1.0% |
| |||||||
Canadian Pacific Railway Ltd. | 12,086 | 2,508 | ||||||
FedEx Corp. | 7,700 | 1,243 | ||||||
Union Pacific Corp. | 19,179 | 2,079 | ||||||
5,830 | ||||||||
Utilities – 2.2% |
| |||||||
American Electric Power Co., Inc. | 14,400 | 752 | ||||||
Edison International | 94,800 | 5,301 | ||||||
Entergy Corp. | 33,300 | 2,575 | ||||||
Exelon Corp. | 108,800 | 3,709 | ||||||
NextEra Energy, Inc. | 8,100 | 760 | ||||||
13,097 | ||||||||
Waste & Environment Services & Equipment – 0.9% |
| |||||||
Waste Management, Inc. | 119,900 | 5,699 | ||||||
Total Common Stocks | ||||||||
(Cost $410,573) | 580,736 |
NUMBER OF SHARES | VALUE (000s) | |||||||
INVESTMENT COMPANIES – 3.7% | ||||||||
Northern Institutional Funds – Diversified Assets Portfolio, | 22,220,736 | $22,221 | ||||||
Total Investment Companies | ||||||||
(Cost $22,221) | 22,221 | |||||||
| ||||||||
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
SHORT-TERM INVESTMENTS – 0.1% | ||||||||
U.S. Treasury Bill, | $955 | $955 | ||||||
Total Short-Term Investments | ||||||||
(Cost $955) | 955 | |||||||
Total Investments – 99.9% | ||||||||
(Cost $433,749) | 603,912 | |||||||
Other Assets less Liabilities – 0.1% |
| 459 | ||||||
NET ASSETS – 100.0% | $604,371 |
(1) | At March 31, 2014, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $11,790,000 with net purchases of approximately $10,431,000 during the six months ended September 30, 2014. |
(2) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
(3) | Security pledged as collateral to cover margin requirements for open futures contracts. |
* | Non-Income Producing Security |
Percentages shown are based on Net Assets.
At September 30, 2014, the Fund had open futures contracts as follows:
TYPE | NUMBER OF CONTRACTS | NOTIONAL AMOUNT (000S) | CONTRACT POSITION | CONTRACT EXP. | UNREALIZED GAINS (LOSSES) (000S) | |||||||||||||||
E-mini S&P 500 | 112 | $11,007 | Long | 12/14 | $(33) |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 42 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
At September 30, 2014, the industry sectors for the Fund were:
INDUSTRY SECTOR | % OF LONG-TERM INVESTMENTS | |||
Consumer Discretionary | 15.9% | |||
Consumer Staples | 10.7 | |||
Energy | 9.0 | |||
Financials | 11.2 | |||
Health Care | 18.8 | |||
Industrials | 6.3 | |||
Information Technology | 21.2 | |||
Materials | 2.4 | |||
Telecommunication Services | 2.2 | |||
Utilities | 2.3 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Common Stocks | $580,736 | (1) | $ – | $ – | $580,736 | |||||||||||
Investment Companies | 22,221 | – | – | 22,221 | ||||||||||||
Short-Term Investments | – | 955 | – | 955 | ||||||||||||
Total Investments | $602,957 | $955 | $ – | $603,912 | ||||||||||||
| ||||||||||||||||
OTHER FINANCIAL INSTRUMENTS |
| |||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $(33) | $ – | $ – | $(33) |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 43 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER MID CAP FUND
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.7% | ||||||||
Aerospace & Defense – 1.4% |
| |||||||
Alliant Techsystems, Inc. | 9,465 | $1,208 | ||||||
Exelis, Inc. | 79,700 | 1,318 | ||||||
Huntington Ingalls Industries, Inc. | 13,000 | 1,355 | ||||||
L-3 Communications Holdings, Inc. | 23,800 | 2,830 | ||||||
Northrop Grumman Corp. | 18,400 | 2,425 | ||||||
Oshkosh Corp. | 42,200 | 1,863 | ||||||
Raytheon Co. | 14,400 | 1,463 | ||||||
12,462 | ||||||||
Apparel & Textile Products – 1.4% |
| |||||||
Deckers Outdoor Corp. * | 30,775 | 2,991 | ||||||
Hanesbrands, Inc. | 22,900 | 2,460 | ||||||
Under Armour, Inc., Class A * | 97,933 | 6,767 | ||||||
12,218 | ||||||||
Asset Management – 1.3% |
| |||||||
Affiliated Managers Group, Inc. * | 34,420 | 6,897 | ||||||
Invesco Ltd. | 120,450 | 4,755 | ||||||
11,652 | ||||||||
Automotive – 1.5% |
| |||||||
Autoliv, Inc. | 13,100 | 1,204 | ||||||
Cooper Tire & Rubber Co. | 91,000 | 2,612 | ||||||
Goodyear Tire & Rubber (The) Co. | 62,100 | 1,402 | ||||||
Lear Corp. | 16,500 | 1,426 | ||||||
Magna International, Inc. | 31,385 | 2,979 | ||||||
TRW Automotive Holdings Corp. * | 34,800 | 3,523 | ||||||
13,146 | ||||||||
Banking – 4.5% |
| |||||||
Banco Latinoamericano de Comercio | ||||||||
Exterior S.A., Class E | 43,400 | 1,331 | ||||||
East West Bancorp, Inc. | 182,869 | 6,218 | ||||||
Fifth Third Bancorp | 179,500 | 3,594 | ||||||
Huntington Bancshares, Inc. | 321,200 | 3,125 | ||||||
KeyCorp | 488,700 | 6,514 | ||||||
Regions Financial Corp. | 388,200 | 3,897 | ||||||
Signature Bank * | 53,013 | 5,941 | ||||||
SunTrust Banks, Inc. | 52,280 | 1,988 | ||||||
Webster Financial Corp. | 229,950 | 6,701 | ||||||
39,309 | ||||||||
Biotechnology & Pharmaceuticals – 1.2% |
| |||||||
Mallinckrodt PLC * | 18,905 | 1,704 | ||||||
Perrigo Co. PLC | 44,746 | 6,721 | ||||||
United Therapeutics Corp. * | 8,300 | 1,068 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.7% – continued | ||||||||
Biotechnology & Pharmaceuticals – 1.2% – continued |
| |||||||
USANA Health Sciences, Inc. * | 11,500 | $847 | ||||||
10,340 | ||||||||
Chemicals – 2.3% |
| |||||||
Cabot Corp. | 29,200 | 1,483 | ||||||
Celanese Corp., Series A | 52,810 | 3,091 | ||||||
CF Industries Holdings, Inc. | 6,200 | 1,731 | ||||||
Huntsman Corp. | 299,550 | 7,785 | ||||||
Sigma-Aldrich Corp. | 43,425 | 5,906 | ||||||
19,996 | ||||||||
Commercial Services – 0.6% |
| |||||||
Manpowergroup, Inc. | 21,095 | 1,479 | ||||||
RR Donnelley & Sons Co. | 239,850 | 3,948 | ||||||
Vectrus, Inc. * | 4,428 | 86 | ||||||
5,513 | ||||||||
Consumer Products – 4.4% |
| |||||||
Archer-Daniels-Midland Co. | 58,700 | 3,000 | ||||||
Church & Dwight Co., Inc. | 79,536 | 5,580 | ||||||
ConAgra Foods, Inc. | 51,500 | 1,702 | ||||||
Energizer Holdings, Inc. | 10,400 | 1,281 | ||||||
Fresh Del Monte Produce, Inc. | 42,800 | 1,365 | ||||||
Hain Celestial Group (The), Inc. * | 70,042 | 7,169 | ||||||
JM Smucker (The) Co. | 32,106 | 3,178 | ||||||
Molson Coors Brewing Co., Class B | 61,995 | 4,615 | ||||||
Pinnacle Foods, Inc. | 68,300 | 2,230 | ||||||
Tyson Foods, Inc., Class A | 201,025 | 7,914 | ||||||
38,034 | ||||||||
Containers & Packaging – 0.5% |
| |||||||
Graphic Packaging Holding Co. * | 110,850 | 1,378 | ||||||
Owens-Illinois, Inc. * | 38,300 | 998 | ||||||
Rock-Tenn Co., Class A | 38,000 | 1,808 | ||||||
4,184 | ||||||||
Distributors – Discretionary – 1.6% |
| |||||||
Fastenal Co. | 81,906 | 3,678 | ||||||
Ingram Micro, Inc., Class A * | 36,900 | 952 | ||||||
LKQ Corp. * | 278,327 | 7,401 | ||||||
Tech Data Corp. * | 31,200 | 1,836 | ||||||
13,867 | ||||||||
Electrical Equipment – 2.5% |
| |||||||
AMETEK, Inc. | 85,856 | 4,311 | ||||||
Amphenol Corp., Class A | 79,311 | 7,920 | ||||||
Roper Industries, Inc. | 22,986 | 3,362 | ||||||
TE Connectivity Ltd. | 12,700 | 702 |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 44 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.7% – continued | ||||||||
Electrical Equipment – 2.5% – continued |
| |||||||
Trimble Navigation Ltd. * | 181,075 | $5,523 | ||||||
21,818 | ||||||||
Engineering & Construction Services – 0.3% |
| |||||||
AECOM Technology Corp. * | 18,000 | 607 | ||||||
Quanta Services, Inc. * | 28,975 | 1,052 | ||||||
Tutor Perini Corp. * | 46,800 | 1,236 | ||||||
2,895 | ||||||||
Gaming, Lodging & Restaurants – 2.3% |
| |||||||
Brinker International, Inc. | 30,100 | 1,529 | ||||||
Chipotle Mexican Grill, Inc. * | 10,334 | 6,888 | ||||||
MGM Resorts International * | 58,425 | 1,331 | ||||||
Panera Bread Co., Class A * | 26,540 | 4,319 | ||||||
Royal Caribbean Cruises Ltd. | 58,725 | 3,952 | ||||||
Wendy’s (The) Co. | 290,475 | 2,399 | ||||||
20,418 | ||||||||
Hardware – 3.5% |
| |||||||
ARRIS Group, Inc. * | 69,250 | 1,964 | ||||||
Brocade Communications Systems, Inc. | 135,900 | 1,477 | ||||||
CommScope Holding Co., Inc. * | 72,690 | 1,738 | ||||||
Corning, Inc. | 108,700 | 2,102 | ||||||
F5 Networks, Inc. * | 22,390 | 2,659 | ||||||
Harris Corp. | 29,600 | 1,965 | ||||||
Lexmark International, Inc., Class A | 52,200 | 2,219 | ||||||
NetApp, Inc. | 52,150 | 2,240 | ||||||
Pitney Bowes, Inc. | 84,375 | 2,109 | ||||||
Seagate Technology PLC | 43,200 | 2,474 | ||||||
TiVo, Inc. * | 239,000 | 3,058 | ||||||
Western Digital Corp. | 62,670 | 6,099 | ||||||
30,104 | ||||||||
Health Care Facilities & Services – 3.8% |
| |||||||
Aetna, Inc. | 44,945 | 3,640 | ||||||
Catamaran Corp. * | 97,916 | 4,127 | ||||||
Cigna Corp. | 12,800 | 1,161 | ||||||
HCA Holdings, Inc. * | 68,190 | 4,809 | ||||||
Laboratory Corp. of America Holdings * | 20,255 | 2,061 | ||||||
MEDNAX, Inc. * | 43,060 | 2,361 | ||||||
PAREXEL International Corp. * | 96,233 | 6,071 | ||||||
Quintiles Transnational Holdings, Inc. * | 49,390 | 2,755 | ||||||
Select Medical Holdings Corp. | 111,600 | 1,343 | ||||||
Universal Health Services, Inc., Class B | 16,340 | 1,707 | ||||||
WellPoint, Inc. | 24,085 | 2,881 | ||||||
32,916 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.7% – continued | ||||||||
Home & Office Products – 0.8% |
| |||||||
NACCO Industries, Inc., Class A | 7,929 | $394 | ||||||
Stanley Black & Decker, Inc. | 34,395 | 3,054 | ||||||
Whirlpool Corp. | 22,300 | 3,248 | ||||||
6,696 | ||||||||
Institutional Financial Services – 2.1% |
| |||||||
Intercontinental Exchange, Inc. | 30,440 | 5,938 | ||||||
Raymond James Financial, Inc. | 202,711 | 10,861 | ||||||
State Street Corp. | 15,500 | 1,141 | ||||||
17,940 | ||||||||
Insurance – 6.0% |
| |||||||
Aflac, Inc. | 13,700 | 798 | ||||||
Allied World Assurance Co. Holdings A.G. | 72,250 | 2,662 | ||||||
Allstate (The) Corp. | 55,200 | 3,388 | ||||||
American Financial Group, Inc. | 39,700 | 2,298 | ||||||
Ameriprise Financial, Inc. | 16,100 | 1,986 | ||||||
Aspen Insurance Holdings Ltd. | 30,700 | 1,313 | ||||||
Assurant, Inc. | 27,900 | 1,794 | ||||||
Brown & Brown, Inc. | 132,191 | 4,250 | ||||||
Endurance Specialty Holdings Ltd. | 23,200 | 1,280 | ||||||
Everest Re Group Ltd. | 17,500 | 2,835 | ||||||
Hartford Financial Services Group (The), Inc. | 143,025 | 5,328 | ||||||
HCC Insurance Holdings, Inc. | 34,850 | 1,683 | ||||||
Lincoln National Corp. | 127,300 | 6,821 | ||||||
Montpelier Re Holdings Ltd. | 33,200 | 1,032 | ||||||
PartnerRe Ltd. | 10,700 | 1,176 | ||||||
Principal Financial Group, Inc. | 36,300 | 1,905 | ||||||
Unum Group | 100,500 | 3,455 | ||||||
Validus Holdings Ltd. | 32,200 | 1,260 | ||||||
Voya Financial, Inc. | 124,775 | 4,879 | ||||||
XL Group PLC | 59,575 | 1,976 | ||||||
52,119 | ||||||||
Iron & Steel – 0.7% |
| |||||||
Allegheny Technologies, Inc. | 58,765 | 2,180 | ||||||
Reliance Steel & Aluminum Co. | 16,300 | 1,115 | ||||||
United States Steel Corp. | 77,325 | 3,029 | ||||||
6,324 | ||||||||
Leisure Products – 0.8% |
| |||||||
Polaris Industries, Inc. | 48,901 | 7,325 | ||||||
Machinery – 2.3% |
| |||||||
AGCO Corp. | 67,400 | 3,064 | ||||||
Hyster-Yale Materials Handling, Inc. | 15,858 | 1,136 | ||||||
IDEX Corp. | 78,305 | 5,667 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 45 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER MID CAP FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.7% – continued | ||||||||
Machinery – 2.3% – continued |
| |||||||
ITT Corp. | 85,495 | $3,842 | ||||||
Middleby (The) Corp. * | 71,798 | 6,327 | ||||||
20,036 | ||||||||
Manufactured Goods – 0.4% |
| |||||||
Chart Industries, Inc. * | 61,267 | 3,745 | ||||||
Media – 0.9% |
| |||||||
Gannett Co., Inc. | 125,475 | 3,723 | ||||||
Starz, Class A * | 124,175 | 4,108 | ||||||
7,831 | ||||||||
Medical Equipment & Devices – 4.6% |
| |||||||
Align Technology, Inc. * | 97,383 | 5,033 | ||||||
Cooper (The) Cos., Inc. | 30,151 | 4,696 | ||||||
CR Bard, Inc. | 31,002 | 4,424 | ||||||
Hologic, Inc. * | 145,525 | 3,541 | ||||||
IDEXX Laboratories, Inc. * | 26,012 | 3,065 | ||||||
Myriad Genetics, Inc. * | 17,600 | 679 | ||||||
Pall Corp. | 47,597 | 3,984 | ||||||
Sirona Dental Systems, Inc. * | 67,911 | 5,207 | ||||||
Varian Medical Systems, Inc. * | 66,701 | 5,344 | ||||||
Zimmer Holdings, Inc. | 44,425 | 4,467 | ||||||
40,440 | ||||||||
Metals & Mining – 1.1% |
| |||||||
Alcoa, Inc. | 325,350 | 5,235 | ||||||
Stillwater Mining Co. * | 267,750 | 4,024 | ||||||
9,259 | ||||||||
Oil, Gas & Coal – 6.7% |
| |||||||
Atwood Oceanics, Inc. * | 26,300 | 1,149 | ||||||
Chesapeake Energy Corp. | 38,425 | 883 | ||||||
Cimarex Energy Co. | 34,410 | 4,354 | ||||||
Concho Resources, Inc. * | 46,480 | 5,828 | ||||||
Encana Corp. | 168,550 | 3,575 | ||||||
Helmerich & Payne, Inc. | 15,700 | 1,536 | ||||||
Hess Corp. | 28,200 | 2,660 | ||||||
Marathon Petroleum Corp. | 33,400 | 2,828 | ||||||
Murphy Oil Corp. | 59,000 | 3,358 | ||||||
Oceaneering International, Inc. | 70,174 | 4,573 | ||||||
PBF Energy, Inc., Class A | 113,400 | 2,721 | ||||||
Precision Drilling Corp. | 502,775 | 5,425 | ||||||
Range Resources Corp. | 60,062 | 4,073 | ||||||
SM Energy Co. | 37,284 | 2,908 | ||||||
Superior Energy Services, Inc. | 45,927 | 1,510 | ||||||
Tesoro Corp. | 35,500 | 2,165 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.7% – continued | ||||||||
Oil, Gas & Coal – 6.7% – continued |
| |||||||
Valero Energy Corp. | 52,800 | $2,443 | ||||||
Weatherford International PLC * | 112,925 | 2,349 | ||||||
Whiting Petroleum Corp. * | 51,665 | 4,007 | ||||||
58,345 | ||||||||
Passenger Transportation – 0.7% |
| |||||||
Alaska Air Group, Inc. | 13,600 | 592 | ||||||
American Airlines Group, Inc. | 75,285 | 2,671 | ||||||
Delta Air Lines, Inc. | 64,350 | 2,326 | ||||||
SkyWest, Inc. | 68,200 | 531 | ||||||
6,120 | ||||||||
Real Estate – 0.7% |
| |||||||
CBRE Group, Inc., Class A * | 189,300 | 5,630 | ||||||
Real Estate Investment Trusts – 5.8% |
| |||||||
Annaly Capital Management, Inc. | 137,500 | 1,469 | ||||||
Ashford Hospitality Prime, Inc. | 13,005 | 198 | ||||||
Ashford Hospitality Trust, Inc. | 91,900 | 939 | ||||||
AvalonBay Communities, Inc. | 18,470 | 2,604 | ||||||
BioMed Realty Trust, Inc. | 349,200 | 7,054 | ||||||
Brandywine Realty Trust | 265,325 | 3,733 | ||||||
Capstead Mortgage Corp. | 83,900 | 1,027 | ||||||
CBL & Associates Properties, Inc. | 189,225 | 3,387 | ||||||
DuPont Fabros Technology, Inc. | 172,950 | 4,677 | ||||||
Equity Commonwealth | 54,900 | 1,411 | ||||||
Government Properties Income Trust | 65,000 | 1,424 | ||||||
Hospitality Properties Trust | 90,400 | 2,427 | ||||||
Inland Real Estate Corp. | 80,238 | 795 | ||||||
Lexington Realty Trust | 186,700 | 1,828 | ||||||
Liberty Property Trust | 181,700 | 6,043 | ||||||
MFA Financial, Inc. | 169,700 | 1,320 | ||||||
Omega Healthcare Investors, Inc. | 85,500 | 2,923 | ||||||
PennyMac Mortgage Investment Trust | 66,800 | 1,432 | ||||||
Sunstone Hotel Investors, Inc. | 440,925 | 6,094 | ||||||
50,785 | ||||||||
Renewable Energy – 0.5% |
| |||||||
First Solar, Inc. * | 30,250 | 1,991 | ||||||
GT Advanced Technologies, Inc. * | 215,900 | 2,338 | ||||||
4,329 | ||||||||
Retail – Consumer Staples – 0.5% |
| |||||||
Kroger (The) Co. | 51,700 | 2,689 | ||||||
Rite Aid Corp. * | 317,175 | 1,535 | ||||||
4,224 |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 46 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.7% – continued | ||||||||
Retail – Discretionary – 5.5% |
| |||||||
American Eagle Outfitters, Inc. | 221,475 | $3,216 | ||||||
Beacon Roofing Supply, Inc. * | 87,561 | 2,231 | ||||||
Copart, Inc. * | 170,353 | 5,334 | ||||||
Dillard’s, Inc., Class A | 14,500 | 1,580 | ||||||
DSW, Inc., Class A | 132,507 | 3,990 | ||||||
Foot Locker, Inc. | 61,150 | 3,403 | ||||||
GameStop Corp., Class A | 34,700 | 1,430 | ||||||
Kohl’s Corp. | 60,400 | 3,686 | ||||||
Macy’s, Inc. | 122,450 | 7,124 | ||||||
O’Reilly Automotive, Inc. * | 58,877 | 8,853 | ||||||
Tractor Supply Co. | 119,032 | 7,322 | ||||||
48,169 | ||||||||
Semiconductors – 1.7% |
| |||||||
Integrated Device Technology, Inc. * | 88,800 | 1,416 | ||||||
Lam Research Corp. | 21,070 | 1,574 | ||||||
Micron Technology, Inc. * | 58,150 | 1,992 | ||||||
NXP Semiconductor N.V. * | 36,780 | 2,517 | ||||||
ON Semiconductor Corp. * | 329,200 | 2,943 | ||||||
Skyworks Solutions, Inc. | 50,230 | 2,916 | ||||||
Vishay Intertechnology, Inc. | 76,700 | 1,096 | ||||||
14,454 | ||||||||
Software – 5.5% |
| |||||||
ANSYS, Inc. * | 73,528 | 5,564 | ||||||
CA, Inc. | 66,900 | 1,869 | ||||||
Cerner Corp. * | 121,614 | 7,245 | ||||||
Check Point Software Technologies Ltd. * | 30,430 | 2,107 | ||||||
CommVault Systems, Inc. * | 45,866 | 2,312 | ||||||
Electronic Arts, Inc. * | 80,465 | 2,865 | ||||||
Intuit, Inc. | 81,156 | 7,113 | ||||||
Manhattan Associates, Inc. * | 150,827 | 5,041 | ||||||
Red Hat, Inc. * | 104,309 | 5,857 | ||||||
Tyler Technologies, Inc. * | 53,546 | 4,733 | ||||||
Ultimate Software Group (The), Inc. * | 25,761 | 3,645 | ||||||
48,351 | ||||||||
Specialty Finance – 2.6% |
| |||||||
AerCap Holdings N.V. * | 49,625 | 2,030 | ||||||
Aircastle Ltd. | 47,200 | 772 | ||||||
Capital One Financial Corp. | 14,200 | 1,159 | ||||||
CIT Group, Inc. | 66,350 | 3,049 | ||||||
Discover Financial Services | 59,805 | 3,851 | ||||||
Fiserv, Inc. * | 116,654 | 7,540 | ||||||
GATX Corp. | 78,245 | 4,567 | ||||||
22,968 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.7% – continued | ||||||||
Technology Services – 3.6% |
| |||||||
Cognizant Technology Solutions Corp., Class A * | 128,800 | $5,766 | ||||||
Convergys Corp. | 72,300 | 1,288 | ||||||
CoStar Group, Inc. * | 27,401 | 4,262 | ||||||
Engility Holdings, Inc. * | 9,449 | 295 | ||||||
Gartner, Inc. * | 42,312 | 3,109 | ||||||
IHS, Inc., Class A * | 51,010 | 6,386 | ||||||
Science Applications International Corp. | 7,271 | 322 | ||||||
Sykes Enterprises, Inc. * | 69,800 | 1,395 | ||||||
TeleTech Holdings, Inc. * | 39,600 | 973 | ||||||
Verisk Analytics, Inc., Class A * | 73,886 | 4,499 | ||||||
Xerox Corp. | 251,800 | 3,331 | ||||||
31,626 | ||||||||
Telecom – 1.1% |
| |||||||
Level 3 Communications, Inc. * | 202,165 | 9,245 | ||||||
Spok Holdings, Inc. | 41,200 | 536 | ||||||
9,781 | ||||||||
Transportation & Logistics – 1.4% |
| |||||||
Con-way, Inc. | 59,125 | 2,809 | ||||||
Genesee & Wyoming, Inc., Class A * | 60,675 | 5,783 | ||||||
JB Hunt Transport Services, Inc. | 49,468 | 3,663 | ||||||
12,255 | ||||||||
Transportation Equipment – 1.7% |
| |||||||
Allison Transmission Holdings, Inc. | 234,775 | 6,689 | ||||||
Trinity Industries, Inc. | 43,245 | 2,020 | ||||||
Wabtec Corp. | 77,840 | 6,308 | ||||||
15,017 | ||||||||
Utilities – 5.3% |
| |||||||
Ameren Corp. | 254,465 | 9,754 | ||||||
American Electric Power Co., Inc. | 69,700 | 3,639 | ||||||
Atmos Energy Corp. | 141,870 | 6,767 | ||||||
Avista Corp. | 68,900 | 2,103 | ||||||
CMS Energy Corp. | 93,375 | 2,769 | ||||||
DTE Energy Co. | 45,070 | 3,429 | ||||||
Edison International | 65,000 | 3,635 | ||||||
Entergy Corp. | 51,129 | 3,954 | ||||||
NRG Energy, Inc. | 63,800 | 1,945 | ||||||
Portland General Electric Co. | 134,775 | 4,329 | ||||||
Public Service Enterprise Group, Inc. | 104,200 | 3,880 | ||||||
46,204 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 47 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER MID CAP FUND continued | SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.7% – continued | ||||||||
Waste & Environment Service Equipment & Facilities – 0.6% |
| |||||||
Stericycle, Inc. * | 42,185 | $4,917 | ||||||
Total Common Stocks | ||||||||
(Cost $655,727) | 843,762 | |||||||
| ||||||||
INVESTMENT COMPANIES – 3.1% | ||||||||
Northern Institutional Funds – Diversified Assets Portfolio, 0.01% (1)(2) | 27,529,046 | 27,529 | ||||||
Total Investment Companies | ||||||||
(Cost $27,529) | 27,529 | |||||||
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
SHORT-TERM INVESTMENTS – 0.1% | ||||||||
U.S. Treasury Bill, | $1,155 | $1,155 | ||||||
Total Short-Term Investments | ||||||||
(Cost $1,155) | 1,155 | |||||||
| ||||||||
Total Investments – 99.9% | ||||||||
(Cost $684,411) | 872,446 | |||||||
Other Assets less Liabilities – 0.1% |
| 507 | ||||||
NET ASSETS – 100.0% | $872,953 |
(1) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
(2) | At March 31, 2014, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $24,232,000 with net purchases of approximately $3,297,000 during the six months ended September 30, 2014. |
(3) | Security pledged as collateral to cover margin requirements for open futures contracts. |
* | Non-Income Producing Security |
Percentages shown are based on Net Assets.
At September 30, 2014, the Fund had open futures contracts as follows:
TYPE | NUMBER OF CONTRACTS | NOTIONAL AMOUNT (000s) | CONTRACT POSITION | CONTRACT EXP. | UNREALIZED GAINS (LOSSES) (000s) | |||||||||||||||
E-Mini S&P MidCap 400 | 113 | $15,429 | Long | 12/14 | $(274) |
At September 30, 2014, the industry sectors for the Fund were:
INDUSTRY SECTOR | % OF LONG TERM INVESTMENTS | |||
Consumer Discretionary | 13.3% | |||
Consumer Staples | 5.1 | |||
Energy | 6.9 | |||
Financials | 22.0 | |||
Health Care | 10.2 | |||
Industrials | 15.4 | |||
Information Technology | 15.7 | |||
Materials | 4.7 | |||
Telecommunication Services | 1.2 | |||
Utilities | 5.5 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Common Stocks | $843,762 | (1) | $– | $– | $843,762 | |||||||||||
Investment Companies | 27,529 | – | – | 27,529 | ||||||||||||
Short-Term Investments | – | 1,155 | – | 1,155 | ||||||||||||
Total Investments | $871,291 | $1,155 | $– | $872,446 | ||||||||||||
OTHER FINANCIAL INTRUMENTS |
| |||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (274) | $– | $– | $ | (274) |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 48 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER SMALL CAP FUND | SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.5% | ||||||||
Aerospace & Defense – 0.5% |
| |||||||
Embraer S.A. ADR | 7,600 | $298 | ||||||
Teledyne Technologies, Inc. * | 14,453 | 1,359 | ||||||
1,657 | ||||||||
Apparel & Textile Products – 0.6% |
| |||||||
Quiksilver, Inc. * | 82,600 | 142 | ||||||
Tumi Holdings, Inc. * | 86,320 | 1,757 | ||||||
1,899 | ||||||||
Asset Management – 1.2% |
| |||||||
Financial Engines, Inc. | 81,725 | 2,796 | ||||||
Golub Capital BDC, Inc. | 30,500 | 486 | ||||||
Hercules Technology Growth Capital, Inc. | 40,647 | 588 | ||||||
Oppenheimer Holdings, Inc., Class A | 6,700 | 136 | ||||||
4,006 | ||||||||
Automotive – 3.7% |
| |||||||
Actuant Corp., Class A | 17,600 | 537 | ||||||
Dorman Products, Inc. * | 89,079 | 3,569 | ||||||
Gentex Corp. | 48,653 | 1,302 | ||||||
Gentherm, Inc. * | 82,045 | 3,465 | ||||||
Miller Industries, Inc. | 64,792 | 1,095 | ||||||
Motorcar Parts of America, Inc. * | 61,060 | 1,661 | ||||||
Standard Motor Products, Inc. | 13,520 | 466 | ||||||
12,095 | ||||||||
Banking – 5.1% |
| |||||||
Associated Banc-Corp | 35,800 | 624 | ||||||
Bank of the Ozarks, Inc. | 14,460 | 456 | ||||||
Cardinal Financial Corp. | 28,600 | 488 | ||||||
Columbia Banking System, Inc. | 30,810 | 764 | ||||||
Community Bank System, Inc. | 16,650 | 559 | ||||||
First BanCorp * | 62,500 | 297 | ||||||
First Horizon National Corp. | 219,585 | 2,696 | ||||||
First Niagara Financial Group, Inc. | 109,700 | 914 | ||||||
Hancock Holding Co. | 26,120 | 837 | ||||||
Iberiabank Corp. | 13,850 | 866 | ||||||
Investors Bancorp, Inc. | 33,900 | 343 | ||||||
PacWest Bancorp | 35,585 | 1,467 | ||||||
Popular, Inc. * | 10,500 | 309 | ||||||
Susquehanna Bancshares, Inc. | 67,030 | 670 | ||||||
Synovus Financial Corp. | 26,000 | 615 | ||||||
United Community Banks, Inc. | 29,017 | 478 | ||||||
United Financial Bancorp, Inc. | 70,535 | 895 | ||||||
Valley National Bancorp | 70,250 | 681 | ||||||
Webster Financial Corp. | 48,450 | 1,412 | ||||||
Westamerica Bancorporation | 14,172 | 659 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.5% – continued | ||||||||
Banking – 5.1% – continued |
| |||||||
Wintrust Financial Corp. | 15,059 | $673 | ||||||
16,703 | ||||||||
Biotechnology & Pharmaceuticals – 2.1% |
| |||||||
Akorn, Inc. * | 116,580 | 4,228 | ||||||
Ligand Pharmaceuticals, Inc. * | 27,100 | 1,273 | ||||||
Phibro Animal Health Corp., Class A | 6,500 | 146 | ||||||
Taro Pharmaceutical Industries Ltd. * | 9,000 | 1,385 | ||||||
7,032 | ||||||||
Chemicals – 0.7% |
| |||||||
Balchem Corp. | 14,583 | 825 | ||||||
Innophos Holdings, Inc. | 12,010 | 662 | ||||||
Innospec, Inc. | 23,915 | 858 | ||||||
2,345 | ||||||||
Commercial Services – 5.2% |
| |||||||
ABM Industries, Inc. | 16,350 | 420 | ||||||
Advisory Board (The) Co. * | 98,823 | 4,604 | ||||||
Barrett Business Services, Inc. | 37,237 | 1,470 | ||||||
Brink’s (The) Co. | 45,644 | 1,097 | ||||||
CBIZ, Inc. * | 132,861 | 1,046 | ||||||
G&K Services, Inc., Class A | 12,280 | 680 | ||||||
Healthcare Services Group, Inc. | 103,575 | 2,963 | ||||||
Heidrick & Struggles International, Inc. | 12,100 | 249 | ||||||
Hudson Global, Inc. * | 262,655 | 993 | ||||||
KAR Auction Services, Inc. | 54,807 | 1,569 | ||||||
Rollins, Inc. | 67,785 | 1,985 | ||||||
17,076 | ||||||||
Consumer Products – 1.1% |
| |||||||
Dean Foods Co. | 104,740 | 1,388 | ||||||
Helen of Troy Ltd. * | 20,600 | 1,082 | ||||||
IGI Laboratories, Inc. * | 76,400 | 712 | ||||||
Lancaster Colony Corp. | 5,400 | 460 | ||||||
3,642 | ||||||||
Consumer Services – 1.2% |
| |||||||
Grand Canyon Education, Inc. * | 44,872 | 1,829 | ||||||
K12, Inc. * | 37,900 | 605 | ||||||
Rent-A-Center, Inc. | 53,500 | 1,624 | ||||||
4,058 | ||||||||
Containers & Packaging – 0.6% |
| |||||||
Greif, Inc., Class A | 13,090 | 573 | ||||||
Silgan Holdings, Inc. | 31,202 | 1,467 | ||||||
2,040 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 49 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER SMALL CAP FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.5% – continued | ||||||||
Distributors – Consumer Staples – 0.7% |
| |||||||
Calavo Growers, Inc. | 13,520 | $610 | ||||||
United Natural Foods, Inc. * | 27,699 | 1,703 | ||||||
2,313 | ||||||||
Distributors – Discretionary – 1.9% |
| |||||||
LKQ Corp. * | 109,325 | 2,907 | ||||||
MWI Veterinary Supply, Inc. * | 22,100 | 3,280 | ||||||
6,187 | ||||||||
Electrical Equipment – 0.9% |
| |||||||
Belden, Inc. | 4,890 | 313 | ||||||
National Instruments Corp. | 65,454 | 2,024 | ||||||
Watts Water Technologies, Inc., Class A | 11,840 | 690 | ||||||
3,027 | ||||||||
Forest & Paper Products – 0.4% |
| |||||||
Schweitzer-Mauduit International, Inc. | 30,200 | 1,248 | ||||||
Gaming, Lodging & Restaurants – 1.6% |
| |||||||
Buffalo Wild Wings, Inc. * | 15,700 | 2,108 | ||||||
Cheesecake Factory (The), Inc. | 31,625 | 1,439 | ||||||
Del Frisco’s Restaurant Group, Inc. * | 17,400 | 333 | ||||||
Krispy Kreme Doughnuts, Inc. * | 38,000 | 652 | ||||||
Lakes Entertainment, Inc. * | 20,000 | 167 | ||||||
Ruby Tuesday, Inc. * | 79,000 | 465 | ||||||
5,164 | ||||||||
Hardware – 3.5% |
| |||||||
ARRIS Group, Inc. * | 65,100 | 1,846 | ||||||
Aruba Networks, Inc. * | 97,350 | 2,101 | ||||||
CalAmp Corp. * | 61,340 | 1,081 | ||||||
Extreme Networks, Inc. * | 14,100 | 67 | ||||||
InterDigital, Inc. | 30,000 | 1,194 | ||||||
Plantronics, Inc. | 20,820 | 995 | ||||||
QLogic Corp. * | 71,900 | 659 | ||||||
Stratasys Ltd. * | 28,009 | 3,383 | ||||||
Synaptics, Inc. * | 2,900 | 212 | ||||||
11,538 | ||||||||
Health Care Facilities & Services – 5.2% |
| |||||||
Bio-Reference Laboratories, Inc. * | 37,620 | 1,056 | ||||||
Catamaran Corp. * | 50,260 | 2,118 | ||||||
Chemed Corp. | 13,035 | 1,341 | ||||||
Hanger, Inc. * | 61,100 | 1,254 | ||||||
ICON PLC * | 67,970 | 3,890 | ||||||
IPC The Hospitalist Co., Inc. * | 51,890 | 2,324 | ||||||
LifePoint Hospitals, Inc. * | 19,700 | 1,363 | ||||||
MEDNAX, Inc. * | 33,165 | 1,818 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.5% – continued | ||||||||
Health Care Facilities & Services – 5.2% – continued |
| |||||||
WellCare Health Plans, Inc. * | 31,000 | $1,871 | ||||||
17,035 | ||||||||
Home & Office Products – 1.5% |
| |||||||
M/I Homes, Inc. * | 34,900 | 692 | ||||||
Masonite International Corp. * | 65,900 | 3,650 | ||||||
TRI Pointe Homes, Inc. * | 16,000 | 207 | ||||||
William Lyon Homes, Class A * | 16,400 | 362 | ||||||
4,911 | ||||||||
Industrial Services – 0.9% |
| |||||||
Kaman Corp. | 32,834 | 1,290 | ||||||
Ritchie Bros. Auctioneers, Inc. | 82,107 | 1,839 | ||||||
3,129 | ||||||||
Institutional Financial Services – 0.9% |
| |||||||
BGC Partners, Inc., Class A | 66,200 | 492 | ||||||
FXCM, Inc., Class A | 59,640 | 945 | ||||||
Greenhill & Co., Inc. | 30,590 | 1,422 | ||||||
2,859 | ||||||||
Insurance – 3.2% |
| |||||||
Argo Group International Holdings Ltd. | 14,100 | 709 | ||||||
Aspen Insurance Holdings Ltd. | 17,300 | 740 | ||||||
Employers Holdings, Inc. | 8,400 | 162 | ||||||
Endurance Specialty Holdings Ltd. | 20,320 | 1,121 | ||||||
Global Indemnity PLC * | 50,423 | 1,272 | ||||||
Hanover Insurance Group (The), Inc. | 11,750 | 722 | ||||||
Horace Mann Educators Corp. | 87,200 | 2,486 | ||||||
National Western Life Insurance Co., | ||||||||
Class A | 1,300 | 321 | ||||||
Platinum Underwriters Holdings Ltd. | 26,000 | 1,583 | ||||||
Primerica, Inc. | 12,260 | 591 | ||||||
StanCorp Financial Group, Inc. | 7,496 | 474 | ||||||
Symetra Financial Corp. | 20,110 | 469 | ||||||
10,650 | ||||||||
Leisure Products – 0.3% |
| |||||||
Performance Sports Group Ltd. * | 29,200 | 469 | ||||||
Thor Industries, Inc. | 11,020 | 568 | ||||||
1,037 | ||||||||
Machinery – 0.6% |
| |||||||
Curtiss-Wright Corp. | 12,700 | 837 | ||||||
Hyster-Yale Materials Handling, Inc. | 7,700 | 551 | ||||||
Power Solutions International, Inc. * | 9,780 | 675 | ||||||
2,063 |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 50 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.5% – continued | ||||||||
Manufactured Goods – 1.1% |
| |||||||
EnPro Industries, Inc. * | 9,700 | $587 | ||||||
Proto Labs, Inc. * | 42,420 | 2,927 | ||||||
3,514 | ||||||||
Media – 2.2% |
| |||||||
Boingo Wireless, Inc. * | 33,710 | 240 | ||||||
IAC/InterActiveCorp | 16,030 | 1,057 | ||||||
MDC Partners, Inc., Class A | 71,111 | 1,365 | ||||||
RetailMeNot, Inc. * | 89,988 | 1,454 | ||||||
Shutterfly, Inc. * | 64,675 | 3,152 | ||||||
7,268 | ||||||||
Medical Equipment & Devices – 3.5% |
| |||||||
Abaxis, Inc. | 24,035 | 1,219 | ||||||
Cepheid, Inc. * | 57,665 | 2,539 | ||||||
Globus Medical, Inc., Class A * | 39,520 | 777 | ||||||
Invacare Corp. | 66,100 | 781 | ||||||
MiMedx Group, Inc. * | 206,808 | 1,474 | ||||||
Neogen Corp. * | 37,969 | 1,500 | ||||||
Techne Corp. | 14,405 | 1,348 | ||||||
Trinity Biotech PLC ADR | 36,450 | 666 | ||||||
West Pharmaceutical Services, Inc. | 26,810 | 1,200 | ||||||
11,504 | ||||||||
Metals & Mining – 1.6% |
| |||||||
Compass Minerals International, Inc. | 11,783 | 993 | ||||||
Horsehead Holding Corp. * | 41,000 | 678 | ||||||
Kaiser Aluminum Corp. | 34,200 | 2,607 | ||||||
Noranda Aluminum Holding Corp. | 186,900 | 845 | ||||||
US Antimony Corp. * | 240,500 | 305 | ||||||
5,428 | ||||||||
Oil, Gas & Coal – 3.2% |
| |||||||
Bonanza Creek Energy, Inc. * | 18,030 | 1,026 | ||||||
Bristow Group, Inc. | 14,240 | 957 | ||||||
Cairn Energy PLC ADR * | 70,400 | 403 | ||||||
Cobalt International Energy, Inc. * | 24,600 | 334 | ||||||
Comstock Resources, Inc. | 34,660 | 645 | ||||||
Dril-Quip, Inc. * | 37,300 | 3,335 | ||||||
McDermott International, Inc. * | 87,000 | 498 | ||||||
Rowan Cos. PLC, Class A | 12,200 | 309 | ||||||
Triangle Petroleum Corp. * | 68,300 | 752 | ||||||
Western Refining, Inc. | 27,800 | 1,167 | ||||||
World Fuel Services Corp. | 27,330 | 1,091 | ||||||
10,517 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.5% – continued | ||||||||
Real Estate – 0.5% |
| |||||||
Howard Hughes (The) Corp. * | 10,530 | $1,579 | ||||||
Real Estate Investment Trusts – 3.7% |
| |||||||
CBL & Associates Properties, Inc. | 36,750 | 658 | ||||||
DuPont Fabros Technology, Inc. | 26,900 | 727 | ||||||
Education Realty Trust, Inc. | 70,240 | 722 | ||||||
EPR Properties | 13,840 | 701 | ||||||
Geo Group (The), Inc. | 71,900 | 2,748 | ||||||
Granite Real Estate Investment Trust | 27,100 | 936 | ||||||
Hersha Hospitality Trust | 129,000 | 822 | ||||||
Medical Properties Trust, Inc. | 94,600 | 1,160 | ||||||
Post Properties, Inc. | 12,280 | 630 | ||||||
Starwood Property Trust, Inc. | 25,130 | 552 | ||||||
Starwood Waypoint Residential Trust | 8,926 | 232 | ||||||
Two Harbors Investment Corp. | 98,000 | 948 | ||||||
Winthrop Realty Trust | 100,700 | 1,518 | ||||||
12,354 | ||||||||
Recreational Facilities & Services – 0.6% |
| |||||||
AMC Entertainment Holdings, Inc., Class A | 19,000 | 437 | ||||||
Cinemark Holdings, Inc. | 16,000 | 544 | ||||||
Six Flags Entertainment Corp. | 28,962 | 996 | ||||||
1,977 | ||||||||
Retail – Consumer Staples – 2.1% |
| |||||||
Casey’s General Stores, Inc. | 8,540 | 612 | ||||||
Five Below, Inc. * | 75,885 | 3,006 | ||||||
Fresh Market (The), Inc. * | 91,235 | 3,187 | ||||||
6,805 | ||||||||
Retail – Discretionary – 4.2% |
| |||||||
Beacon Roofing Supply, Inc. * | 40,885 | 1,042 | ||||||
Brown Shoe Co., Inc. | 39,240 | 1,065 | ||||||
Cato (The) Corp., Class A | 15,580 | 537 | ||||||
Finish Line (The), Inc., Class A | 29,473 | 738 | ||||||
Lumber Liquidators Holdings, Inc. * | 20,800 | 1,193 | ||||||
Monro Muffler Brake, Inc. | 42,170 | 2,046 | ||||||
PHH Corp. * | 73,700 | 1,648 | ||||||
Rush Enterprises, Inc., Class A * | 35,300 | 1,181 | ||||||
SciQuest, Inc. * | 39,445 | 593 | ||||||
Sonic Automotive, Inc., Class A | 77,200 | 1,892 | ||||||
Stage Stores, Inc. | 41,635 | 712 | ||||||
Tile Shop Holdings, Inc. * | 63,451 | 587 | ||||||
Tilly’s, Inc., Class A * | 96,542 | 726 | ||||||
13,960 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 51 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER SMALL CAP FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.5% – continued | ||||||||
Semiconductors – 3.3% | ||||||||
Atmel Corp. * | 81,600 | $659 | ||||||
Cabot Microelectronics Corp. * | 28,483 | 1,181 | ||||||
Cavium, Inc. * | 38,876 | 1,933 | ||||||
Diodes, Inc. * | 12,900 | 309 | ||||||
Intersil Corp., Class A | 57,798 | 821 | ||||||
M/A-COM Technology Solutions Holdings, Inc. * | 90,035 | 1,967 | ||||||
ON Semiconductor Corp. * | 167,600 | 1,498 | ||||||
Power Integrations, Inc. | 22,090 | 1,191 | ||||||
Semtech Corp. * | 48,845 | 1,326 | ||||||
10,885 | ||||||||
Software – 9.5% | ||||||||
8x8, Inc. * | 261,406 | 1,746 | ||||||
ACI Worldwide, Inc. * | 60,680 | 1,138 | ||||||
Aspen Technology, Inc. * | 89,505 | 3,376 | ||||||
athenahealth, Inc. * | 12,634 | 1,664 | ||||||
ChannelAdvisor Corp. * | 26,416 | 433 | ||||||
Dealertrack Technologies, Inc. * | 134,465 | 5,837 | ||||||
Digi International, Inc. * | 63,090 | 473 | ||||||
Envestnet, Inc. * | 46,178 | 2,078 | ||||||
InnerWorkings, Inc. * | 62,190 | 503 | ||||||
NICE Systems Ltd. ADR | 30,590 | 1,248 | ||||||
Omnicell, Inc. * | 9,150 | 250 | ||||||
PDF Solutions, Inc. * | 31,500 | 397 | ||||||
Pegasystems, Inc. | 52,144 | 997 | ||||||
Progress Software Corp. * | 31,870 | 762 | ||||||
PROS Holdings, Inc. * | 24,924 | 628 | ||||||
Qualys, Inc. * | 47,830 | 1,272 | ||||||
SPS Commerce, Inc. * | 25,618 | 1,362 | ||||||
Tangoe, Inc. * | 78,680 | 1,066 | ||||||
Tyler Technologies, Inc. * | 14,790 | 1,308 | ||||||
Ultimate Software Group (The), Inc. * | 25,730 | 3,641 | ||||||
Verint Systems, Inc. * | 23,351 | 1,299 | ||||||
31,478 | ||||||||
Specialty Finance – 2.6% | ||||||||
Cash America International, Inc. | 15,581 | 682 | ||||||
Cass Information Systems, Inc. | 17,578 | 728 | ||||||
Ellie Mae, Inc.* | 66,635 | 2,172 | ||||||
Nelnet, Inc., Class A | 14,203 | 612 | ||||||
Portfolio Recovery Associates, Inc.* | 31,729 | 1,657 | ||||||
Springleaf Holdings, Inc.* | 16,300 | 521 | ||||||
WageWorks, Inc.* | 49,550 | 2,256 | ||||||
8,628 |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 96.5% – continued | ||||||||
Technology Services – 7.1% | ||||||||
Bottomline Technologies de, Inc. * | 88,510 | $2,442 | ||||||
comScore, Inc. * | 81,672 | 2,974 | ||||||
Comverse, Inc. * | 31,830 | 711 | ||||||
Convergys Corp. | 60,160 | 1,072 | ||||||
CoStar Group, Inc. * | 28,284 | 4,399 | ||||||
Cubic Corp. | 22,282 | 1,043 | ||||||
EPAM Systems, Inc. * | 32,280 | 1,413 | ||||||
MAXIMUS, Inc. | 146,530 | 5,880 | ||||||
Syntel, Inc. * | 41,160 | 3,620 | ||||||
23,554 | ||||||||
Telecom – 0.8% | ||||||||
j2 Global, Inc. | 46,300 | 2,285 | ||||||
Premiere Global Services, Inc. * | 19,500 | 234 | ||||||
2,519 | ||||||||
Transportation & Logistics – 4.2% | ||||||||
Con-way, Inc. | 80,360 | 3,817 | ||||||
Echo Global Logistics, Inc. * | 35,036 | 825 | ||||||
Forward Air Corp. | 15,300 | 686 | ||||||
Matson, Inc. | 82,200 | 2,057 | ||||||
Mobile Mini, Inc. | 41,965 | 1,468 | ||||||
Roadrunner Transportation Systems, Inc. * | 212,286 | 4,838 | ||||||
13,691 | ||||||||
Transportation Equipment – 0.5% | ||||||||
Meritor, Inc. * | 141,100 | 1,531 | ||||||
Utilities – 1.7% | ||||||||
El Paso Electric Co. | 15,910 | 581 | ||||||
Great Plains Energy, Inc. | 74,100 | 1,791 | ||||||
NRG Energy, Inc. | 52,323 | 1,595 | ||||||
Portland General Electric Co. | 29,880 | 960 | ||||||
WGL Holdings, Inc. | 17,150 | 722 | ||||||
5,649 | ||||||||
Waste & Environment Services & Equipment – 0.5% |
| |||||||
Advanced Emissions Solutions, Inc. * | 83,790 | 1,782 | ||||||
Total Common Stocks | ||||||||
(Cost $258,665) | 318,337 |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 52 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
MASTER LIMITED PARTNERSHIPS – 0.3% | ||||||||
Media – 0.3% | ||||||||
LIN Media LLC, Class A * | 54,700 | $1,214 | ||||||
Total Master Limited Partnerships | ||||||||
(Cost $1,072) | 1,214 | |||||||
INVESTMENT COMPANIES – 3.7% | ||||||||
Northern Institutional Funds – Diversified Assets Portfolio, 0.01% (1)(2) | 12,141,699 | 12,142 | ||||||
Total Investment Companies | ||||||||
(Cost $12,142) | 12,142 | |||||||
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
SHORT-TERM INVESTMENTS – 0.2% | ||||||||
U.S. Treasury Bill, 0.04%, 10/2/14 (3) | $585 | $585 | ||||||
Total Short-Term Investments | ||||||||
(Cost $585) | 585 | |||||||
Total Investments – 100.7% | ||||||||
(Cost $272,464) | 332,278 | |||||||
Liabilities less Other Assets – (0.7)% | (2,332 | ) | ||||||
NET ASSETS – 100.0% | $329,946 |
(1) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
(2) | At March 31, 2014, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $17,904,000 with net sales of approximately $5,762,000 during the six months ended September 30, 2014. |
(3) | Security pledged as collateral to cover margin requirements for open futures contracts. |
* | Non-Income Producing Security |
Percentages shown are based on Net Assets.
At September 30, 2014, the Fund had open futures contracts as follows:
TYPE | NUMBER OF CONTRACTS | NOTIONAL AMOUNT (000s) | CONTRACT POSITION | CONTRACT EXP. | UNREALIZED GAINS (LOSSES) (000s) | |||||||||||||||
Russell 2000 Mini Index | 45 | $4,935 | Long | 12/14 | $(101) |
At September 30, 2014, the industry sectors for the Fund were:
INDUSTRY SECTOR | % OF LONG-TERM INVESTMENTS | |||
Consumer Discretionary | 15.5% | |||
Consumer Staples | 2.7 | |||
Energy | 3.3 | |||
Financials | 16.6 | |||
Health Care | 12.8 | |||
Industrials | 17.1 | |||
Information Technology | 25.5 | |||
Materials | 4.0 | |||
Telecommunication Services | 0.7 | |||
Utilities | 1.8 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Common Stocks | $318,337 | (1) | $ – | $ – | $318,337 | |||||||||||
Master Limited Partnerships | 1,214 | (1) | – | – | 1,214 | |||||||||||
Investment Companies | 12,142 | – | – | 12,142 | ||||||||||||
Short-Term Investments | – | 585 | – | 585 | ||||||||||||
Total Investments | $331,693 | $585 | $ – | $332,278 | ||||||||||||
OTHER FINANCIAL INSTRUMENTS |
| |||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (101) | $ – | $ – | $ | (101) |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 53 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER EMERGING MARKETS DEBT OPPORTUNITY FUND
PRINCIPAL (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 1.3% | ||||||||
United States – 1.3% |
| |||||||
JPMorgan Chase Bank N.A. Credit Linked Note (Republic of Indonesia), | $7,000,000 | $530 | ||||||
8.38%, 3/19/24 (1) | 6,662,000 | 543 | ||||||
6.13%, 5/17/28 (1) | 9,550,000 | 635 | ||||||
1,708 | ||||||||
Total Corporate Bonds | ||||||||
(Cost $1,804) | 1,708 | |||||||
FOREIGN ISSUER BONDS – 83.3% | ||||||||
Argentina – 0.4% | ||||||||
Mastellone Hermanos S.A., | 195 | 196 | ||||||
YPF S.A., | 300 | 306 | ||||||
502 | ||||||||
Bahrain – 0.7% | ||||||||
Bahrain Government International Bond, | 900 | 907 | ||||||
Belarus – 0.3% | ||||||||
Republic of Belarus, | 100 | 102 | ||||||
8.95%, 1/26/18 | 300 | 321 | ||||||
423 | ||||||||
Belize – 0.0% | ||||||||
Belize Government International Bond, | 35 | 26 | ||||||
Bermuda – 0.7% | ||||||||
Alliance Oil Co. Ltd., | 200 | 164 | ||||||
GeoPark Latin America Ltd. Agenciaen Chile, | 200 | 213 | ||||||
Kosmos Energy Ltd., | 400 | 404 | ||||||
Pacnet Ltd., | 200 | 212 | ||||||
993 | ||||||||
Bolivia – 0.4% | ||||||||
Bolivian Government International Bond, | 500 | 510 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 83.3% – continued | ||||||||
Brazil – 6.6% |
| |||||||
Banco do Brasil S.A., | $500 | $489 | ||||||
Brazil Letras do Tesouro Nacional, | 3,780 | 1,338 | ||||||
Brazil Notas do Tesouro Nacional, Serie B, | 190 | 192 | ||||||
6.00%, 8/15/50 (5) | 700 | 690 | ||||||
Brazil Notas do Tesouro Nacional, Serie F, | 1,641 | 632 | ||||||
10.00%, 1/1/21 (5) | 5,610 | 2,081 | ||||||
10.00%, 1/1/23 (5) | 3,850 | 1,401 | ||||||
10.00%, 1/1/25 (5) | 520 | 185 | ||||||
Brazilian Government International Bond, | 775 | 698 | ||||||
4.25%, 1/7/25 | 550 | 545 | ||||||
5.00%, 1/27/45 | 546 | 513 | ||||||
8,764 | ||||||||
British Virgin – 0.1% | ||||||||
OAS Finance Ltd., | 200 | 193 | ||||||
Canada – 0.2% | ||||||||
Pacific Rubiales Energy Corp., | 150 | 143 | ||||||
5.63%, 1/19/25 (2)(3) | 200 | 192 | ||||||
335 | ||||||||
Cayman Islands – 1.4% | ||||||||
BCP Singapore VI Cayman Financing Co. Ltd., | 200 | 205 | ||||||
China Hongqiao Group Ltd., | 200 | 206 | ||||||
Comcel Trust, | 200 | 211 | ||||||
Country Garden Holdings Co. Ltd., | 200 | 198 | ||||||
Kaisa Group Holdings Ltd., | 200 | 202 | ||||||
Maoye International Holdings Ltd., | 200 | 203 | ||||||
MCE Finance Ltd., | 200 | 192 |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 54 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 83.3% – continued | ||||||||
Cayman Islands – 1.4% – continued |
| |||||||
MIE Holdings Corp., | $200 | $205 | ||||||
Odebrecht Offshore Drilling Finance Ltd., | 195 | 201 | ||||||
1,823 | ||||||||
Chile – 0.6% | ||||||||
Chile Government International Bond, | 150 | 154 | ||||||
2.25%, 10/30/22 | 300 | 283 | ||||||
3.63%, 10/30/42 | 425 | 373 | ||||||
810 | ||||||||
Colombia – 4.5% | ||||||||
Colombia Government International Bond, 12.00%, 10/22/15 (6) | 1,522,000 | 806 | ||||||
7.75%, 4/14/21 (6) | 464,000 | 250 | ||||||
4.00%, 2/26/24 | 125 | 126 | ||||||
9.85%, 6/28/27 (6) | 1,104,000 | 691 | ||||||
7.38%, 9/18/37 | 425 | 567 | ||||||
6.13%, 1/18/41 | 525 | 614 | ||||||
Colombian TES, | 460,100 | 235 | ||||||
10.00%, 7/24/24 (6) | 4,316,000 | 2,606 | ||||||
5,895 | ||||||||
Congo – 0.4% | ||||||||
Republic of Congo, | 522 | 483 | ||||||
Costa Rica – 0.2% | ||||||||
Costa Rica Government International Bond, | 300 | 301 | ||||||
Croatia – 2.8% | ||||||||
Croatia Government International Bond, | 360 | 399 | ||||||
6.00%, 1/26/24 | 3,080 | 3,299 | ||||||
3,698 | ||||||||
Dominican Republic – 0.8% | ||||||||
Dominican Republic International Bond, | 350 | 376 | ||||||
5.88%, 4/18/24 | 270 | 280 | ||||||
7.45%, 4/30/44 | 325 | 349 | ||||||
1,005 |
PRINCIPAL (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 83.3% – continued | ||||||||
Ecuador – 0.7% |
| |||||||
Ecuador Government International Bond, | $900 | $937 | ||||||
El Salvador – 0.1% |
| |||||||
El Salvador Government International Bond, | 200 | 200 | ||||||
Gabon – 0.4% |
| |||||||
Gabonese Republic, | 300 | 340 | ||||||
6.38%, 12/12/24 (2) | 200 | 213 | ||||||
553 | ||||||||
Georgia – 0.3% |
| |||||||
Bank of Georgia JSC, | 200 | 212 | ||||||
Georgia Government International Bond, | 200 | 224 | ||||||
436 | ||||||||
Ghana – 0.4% |
| |||||||
Republic of Ghana, | 100 | 101 | ||||||
8.13%, 1/18/26 (2) | 400 | 401 | ||||||
502 | ||||||||
Guatemala – 0.1% |
| |||||||
Guatemala Government Bond, | 85 | 112 | ||||||
Honduras – 0.7% |
| |||||||
Honduras Government International Bond, | 600 | 642 | ||||||
Republic of Honduras, | 200 | 228 | ||||||
870 | ||||||||
Hungary – 3.8% |
| |||||||
Hungary Government Bond, | 38,890 | 177 | ||||||
4.00%, 4/25/18 (7) | 33,680 | 141 | ||||||
7.00%, 6/24/22 (7) | 53,750 | 256 | ||||||
6.00%, 11/24/23 (7) | 29,710 | 134 | ||||||
Hungary Government International Bond, | 870 | 889 | ||||||
5.75%, 11/22/23 | 1,488 | 1,618 | ||||||
5.38%, 3/25/24 | 820 | 866 | ||||||
7.63%, 3/29/41 | 616 | 788 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 55 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER EMERGING MARKETS DEBT OPPORTUNITY FUND continued
PRINCIPAL (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 83.3% – continued | ||||||||
Hungary – 3.8% – continued |
| |||||||
Magyar Export-Import Bank Zrt, | $200 | $199 | ||||||
5,068 | ||||||||
Indonesia – 3.9% | ||||||||
Indonesia Government International Bond, | 345 | 461 | ||||||
3.38%, 4/15/23 | 520 | 486 | ||||||
5.88%, 1/15/24 | 225 | 249 | ||||||
7.75%, 1/17/38 | 155 | 197 | ||||||
Indonesia Treasury Bond, | 15,638,000 | 1,267 | ||||||
5.63%, 5/15/23 (1) | 1,370,000 | 94 | ||||||
8.38%, 3/15/24 (1) | 8,586,000 | 702 | ||||||
7.00%, 5/15/27 (1) | 1,100,000 | 80 | ||||||
6.13%, 5/15/28 (1) | 1,140,000 | 75 | ||||||
9.00%, 3/15/29 (1) | 6,170,000 | 516 | ||||||
8.38%, 3/15/34 (1) | 7,394,000 | 575 | ||||||
Pertamina Persero PT, | 200 | 191 | ||||||
6.45%, 5/30/44 | 205 | 207 | ||||||
5,100 | ||||||||
Iraq – 0.8% | ||||||||
Republic of Iraq, | 1,125 | 1,007 | ||||||
Ireland – 0.3% | ||||||||
EDC Finance Ltd., | 200 | 181 | ||||||
Metalloinvest Finance Ltd., | 200 | 183 | ||||||
364 | ||||||||
Ivory Coast – 1.6% | ||||||||
Ivory Coast Government International Bond, | 200 | 192 | ||||||
5.75%, 12/31/32 | 1,950 | 1,867 | ||||||
2,059 | ||||||||
Jamaica – 0.2% | ||||||||
Jamaica Government International Bond, | 200 | 214 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 83.3% – continued | ||||||||
Kazakhstan – 0.2% |
| |||||||
Halyk Savings Bank of Kazakhstan JSC, | $200 | $217 | ||||||
Kenya – 0.8% | ||||||||
Kenya Government International Bond, | 1,000 | 1,054 | ||||||
Latvia – 0.2% | ||||||||
Republic of Latvia, | 225 | 250 | ||||||
Lithuania – 0.6% | ||||||||
Lithuania Government International Bond, | 150 | 174 | ||||||
6.63%, 2/1/22 | 500 | 597 | ||||||
771 | ||||||||
Luxembourg – 1.4% | ||||||||
ALROSA Finance S.A., | 400 | 414 | ||||||
ContourGlobal Power Holdings S.A., | 400 | 396 | ||||||
Gol LuxCo S.A., | 200 | 197 | ||||||
Millicom International Cellular S.A., | 200 | 191 | ||||||
Petrobras International Finance Co. S.A., | 532 | 546 | ||||||
Sberbank of Russia Via SB Capital S.A., | 200 | 176 | ||||||
1,920 | ||||||||
Malaysia – 3.6% | ||||||||
Malaysia Government Bond, | 2,120 | 645 | ||||||
4.26%, 9/15/16 (8) | 2,427 | 753 | ||||||
4.24%, 2/7/18 (8) | 4,431 | 1,377 | ||||||
3.26%, 3/1/18 (8) | 1,945 | 588 | ||||||
5.73%, 7/30/19 (8) | 790 | 262 | ||||||
3.65%, 10/31/19 (8) | 1,040 | 317 | ||||||
4.16%, 7/15/21 (8) | 92 | 28 | ||||||
3.48%, 3/15/23 (8) | 603 | 179 | ||||||
4.18%, 7/15/24 (8) | 605 | 188 | ||||||
4.39%, 4/15/26 (8) | 200 | 62 | ||||||
3.89%, 3/15/27 (8) | 1,248 | 371 |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 56 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 83.3% – continued | ||||||||
Malaysia – 3.6% – continued |
| |||||||
3.84%, 4/15/33 (8) | $225 | $64 | ||||||
4,834 | ||||||||
Mexico – 9.4% | ||||||||
America Movil S.A.B. de C.V., | 2,470 | 186 | ||||||
Cemex S.A.B. de C.V., | 200 | 193 | ||||||
Credito Real S.A.B. de C.V., | 200 | 214 | ||||||
Empresas ICA S.A.B. de C.V., | 200 | 205 | ||||||
Grupo KUO S.A.B. de C.V., | 200 | 205 | ||||||
Mexican Bonos, | 16,390 | 1,303 | ||||||
8.50%, 12/13/18 (9) | 22,037 | 1,854 | ||||||
10.00%, 12/5/24 (9) | 9,260 | 892 | ||||||
7.50%, 6/3/27 (9) | 7,900 | 645 | ||||||
7.75%, 5/29/31 (9) | 900 | 74 | ||||||
10.00%, 11/20/36 (9) | 4,661 | 470 | ||||||
7.75%, 11/13/42 (9) | 6,120 | 500 | ||||||
Mexican Udibonos, | 330 | 139 | ||||||
4.00%, 6/13/19 (9) | 590 | 252 | ||||||
4.00%, 11/15/40 (9) | 610 | 253 | ||||||
Mexico Government International Bond, | 90 | 91 | ||||||
4.00%, 10/2/23 | 576 | 595 | ||||||
6.75%, 9/27/34 | 400 | 508 | ||||||
6.05%, 1/11/40 | 280 | 330 | ||||||
4.75%, 3/8/44 | 1,030 | 1,026 | ||||||
Petroleos Mexicanos, | 125 | 152 | ||||||
5.50%, 1/21/21 | 290 | 319 | ||||||
4.88%, 1/24/22 | 219 | 233 | ||||||
4.88%, 1/18/24 | 1,060 | 1,112 | ||||||
5.50%, 6/27/44 | 534 | 545 | ||||||
Unifin Financiera S.A.P.I. de C.V. SOFOM ENR, | 200 | 195 | ||||||
12,491 | ||||||||
Morocco – 0.8% | ||||||||
Morocco Government International Bond, | 630 | 629 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 83.3% – continued | ||||||||
Morocco – 0.8% – continued |
| |||||||
OCP S.A., | $400 | $417 | ||||||
1,046 | ||||||||
Namibia – 0.2% | ||||||||
Namibia International Bonds, | 200 | 212 | ||||||
Netherlands – 2.9% | ||||||||
EMATUM Via Mozambique EMATUM Finance 2020 B.V., | 1,440 | 1,453 | ||||||
FBN Finance Co. B.V., | 200 | 204 | ||||||
8.00%, 7/23/21 (2)(3) | 200 | 202 | ||||||
Greenko Dutch B.V., | 225 | 221 | ||||||
Nostrum Oil & Gas Finance B.V., | 200 | 201 | ||||||
Petrobras Global Finance B.V., | 564 | 571 | ||||||
4.38%, 5/20/23 | 158 | 148 | ||||||
Republic of Angola Via Northern Lights III B.V., | 800 | 866 | ||||||
3,866 | ||||||||
Nigeria – 0.8% | ||||||||
Diamond Bank PLC, | 200 | 197 | ||||||
Nigeria Government Bond, | 4,630 | 29 | ||||||
16.00%, 6/29/19 (10) | 64,891 | 454 | ||||||
16.39%, 1/27/22 (10) | 55,391 | 404 | ||||||
1,084 | ||||||||
Pakistan – 1.2% | ||||||||
Pakistan Government International Bond, | 100 | 103 | ||||||
8.25%, 4/15/24 (2) | 1,460 | 1,465 | ||||||
1,568 | ||||||||
Panama – 1.6% | ||||||||
Avianca Holdings S.A./Avianca Leasing LLC/Grupo Taca Holdings Ltd., | 200 | 212 | ||||||
Panama Government International Bond, | 260 | 286 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 57 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER EMERGING MARKETS DEBT OPPORTUNITY FUND continued
PRINCIPAL (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 83.3% – continued | ||||||||
Panama – 1.6% – continued |
| |||||||
4.00%, 9/22/24 | $835 | $836 | ||||||
9.38%, 4/1/29 | 175 | 260 | ||||||
6.70%, 1/26/36 | 430 | 528 | ||||||
2,122 | ||||||||
Paraguay – 0.9% |
| |||||||
Republic of Paraguay, | 400 | 405 | ||||||
6.10%, 8/11/44 (2) | 685 | 725 | ||||||
1,130 | ||||||||
Peru – 0.8% |
| |||||||
Peruvian Government International Bond, | 1,026 | 405 | ||||||
7.35%, 7/21/25 | 250 | 327 | ||||||
6.95%, 8/12/31 (11) | 214 | 77 | ||||||
8.75%, 11/21/33 | 125 | 190 | ||||||
999 | ||||||||
Philippines – 0.2% |
| |||||||
Philippine Government International Bond, | 4,000 | 94 | ||||||
7.75%, 1/14/31 | 150 | 209 | ||||||
303 | ||||||||
Poland – 3.9% |
| |||||||
Poland Government Bond, | 1,638 | 528 | ||||||
3.75%, 4/25/18 (13) | 3,595 | 1,143 | ||||||
3.25%, 7/25/19 (13) | 2,000 | 628 | ||||||
5.50%, 10/25/19 (13) | 2,560 | 888 | ||||||
5.75%, 9/23/22 (13) | 2,710 | 985 | ||||||
4.00%, 10/25/23 (13) | 596 | 195 | ||||||
3.25%, 7/25/25 (13) | 241 | 74 | ||||||
Poland Government International Bond, | 125 | 139 | ||||||
3.00%, 3/17/23 | 225 | 218 | ||||||
4.00%, 1/22/24 | 394 | 405 | ||||||
5,203 | ||||||||
Romania – 1.0% |
| |||||||
Romania Government Bond, | 660 | 204 | ||||||
5.75%, 4/29/20 (14) | 160 | 50 | ||||||
5.95%, 6/11/21 (14) | 1,810 | 582 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 83.3% – continued | ||||||||
Romania – 1.0% – continued |
| |||||||
Romanian Government International Bond, | $428 | $440 | ||||||
1,276 | ||||||||
Russia – 3.9% |
| |||||||
Russian Federal Bond – OFZ, | 626 | 15 | ||||||
6.20%, 1/31/18 (15) | 46,725 | 1,084 | ||||||
7.50%, 2/27/19 (15) | 64,629 | 1,534 | ||||||
7.60%, 4/14/21 (15) | 13,000 | 304 | ||||||
7.00%, 1/25/23 (15) | 17,310 | 383 | ||||||
7.00%, 8/16/23 (15) | 44,730 | 984 | ||||||
8.15%, 2/3/27 (15) | 3,860 | 91 | ||||||
Russian Foreign Bond – Eurobond, | 200 | 197 | ||||||
12.75%, 6/24/28 | 205 | 337 | ||||||
5.88%, 9/16/43 | 200 | 204 | ||||||
5,133 | ||||||||
Rwanda – 0.3% |
| |||||||
Rwanda International Government Bond, | 400 | 417 | ||||||
Senegal – 0.6% |
| |||||||
Senegal Government International Bond, | 200 | 234 | ||||||
6.25%, 7/30/24 (2) | 600 | 600 | ||||||
834 | ||||||||
Singapore – 0.6% |
| |||||||
Alam Synergy Pte Ltd., | 200 | 217 | ||||||
Oro Negro Drilling Pte Ltd., | 395 | 394 | ||||||
Ottawa Holdings Pte Ltd., | 200 | 176 | ||||||
787 | ||||||||
Slovakia – 0.2% |
| |||||||
Slovakia Government International Bond, | 275 | 292 | ||||||
Slovenia – 1.1% |
| |||||||
Slovenia Government International Bond, | 470 | 512 | ||||||
5.25%, 2/18/24 | 935 | 1,001 | ||||||
1,513 |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 58 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 83.3% – continued | ||||||||
South Africa – 3.9% |
| |||||||
South Africa Government International Bond, | $190 | $192 | ||||||
5.88%, 9/16/25 | 610 | 672 | ||||||
South Africa Government Bond, | 3,272 | 324 | ||||||
7.25%, 1/15/20 (16) | 6,070 | 526 | ||||||
6.75%, 3/31/21 (16) | 3,805 | 318 | ||||||
10.50%, 12/21/26 (16) | 13,410 | 1,385 | ||||||
7.00%, 2/28/31 (16) | 11,629 | 877 | ||||||
8.25%, 3/31/32 (16) | 9,110 | 759 | ||||||
6.25%, 3/31/36 (16) | 1,595 | 106 | ||||||
5,159 | ||||||||
Sri Lanka – 1.0% |
| |||||||
Sri Lanka Government International Bond, | 200 | 211 | ||||||
6.25%, 7/27/21 | 400 | 420 | ||||||
5.88%, 7/25/22 | 625 | 646 | ||||||
1,277 | ||||||||
Thailand – 1.7% |
| |||||||
Thailand Government Bond, | 10,011 | 312 | ||||||
3.25%, 6/16/17 (17) | 15,393 | 484 | ||||||
3.88%, 6/13/19 (17) | 24,277 | 781 | ||||||
1.20%, 7/14/21 (17) | 12,100 | 390 | ||||||
3.63%, 6/16/23 (17) | 1,138 | 36 | ||||||
3.85%, 12/12/25 (17) | 9,023 | 287 | ||||||
2,290 | ||||||||
Turkey – 1.9% |
| |||||||
Turkey Government Bond, | 350 | 152 | ||||||
9.00%, 1/27/16 (18) | 125 | 55 | ||||||
9.00%, 3/8/17 (18) | 1,835 | 800 | ||||||
6.30%, 2/14/18 18) | 1,000 | 400 | ||||||
9.50%, 1/12/22 (18) | 685 | 298 | ||||||
7.10%, 3/8/23 (18) | 1,201 | 450 | ||||||
Turkey Government International Bond, | 300 | 344 | ||||||
2,499 | ||||||||
Ukraine – 0.4% |
| |||||||
Ukraine Government International Bond, | 100 | 85 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 83.3% – continued | ||||||||
Ukraine – 0.4% – continued |
| |||||||
7.80%, 11/28/22 | $200 | $171 | ||||||
7.50%, 4/17/23 | 400 | 335 | ||||||
591 | ||||||||
United Kingdom – 0.1% |
| |||||||
Genel Energy Finance PLC, | 200 | 198 | ||||||
Venezuela – 3.0% |
| |||||||
Petroleos de Venezuela S.A., | 180 | 154 | ||||||
5.25%, 4/12/17 | 75 | 52 | ||||||
9.00%, 11/17/21 | 809 | 540 | ||||||
6.00%, 5/16/24 | 460 | 236 | ||||||
6.00%, 11/15/26 | 2,157 | 1,122 | ||||||
5.38%, 4/12/27 | 150 | 74 | ||||||
9.75%, 5/17/35 | 625 | 397 | ||||||
5.50%, 4/12/37 | 815 | 396 | ||||||
Venezuela Government International Bond, | 270 | 230 | ||||||
6.00%, 12/9/20 | 215 | 133 | ||||||
12.75%, 8/23/22 | 125 | 104 | ||||||
9.00%, 5/7/23 | 165 | 112 | ||||||
8.25%, 10/13/24 | 31 | 20 | ||||||
7.65%, 4/21/25 | 150 | 92 | ||||||
9.25%, 9/15/27 | 50 | 34 | ||||||
11.95%, 8/5/31 | 110 | 88 | ||||||
9.38%, 1/13/34 | 135 | 90 | ||||||
7.00%, 3/31/38 | 163 | 99 | ||||||
3,973 | ||||||||
Zambia – 0.7% |
| |||||||
Zambia Government International Bond, | 275 | 261 | ||||||
8.50%, 4/14/24 | 550 | 626 | ||||||
887 | ||||||||
Total Foreign Issuer Bonds | ||||||||
(Cost $113,461) | 110,286 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 59 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER EMERGING MARKETS DEBT OPPORTUNITY FUND continued
NUMBER OF SHARES | VALUE (000s) | |||||||
INVESTMENT COMPANIES – 9.0% | ||||||||
Northern Institutional Funds – Diversified Assets Portfolio, 0.01% (19)(20) | 11,842,890 | $11,843 | ||||||
Total Investment Companies | ||||||||
(Cost $11,843) | 11,843 | |||||||
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
SHORT-TERM INVESTMENTS – 3.2% | ||||||||
Brazil Letras do Tesouro Nacional, | $2,050 | $815 | ||||||
Mexican Bonos, | 4,337 | 328 | ||||||
Nigeria Treasury Bill, | 35,000 | 212 | ||||||
10.33%, 1/8/15 (10) | 15,420 | 91 | ||||||
Petroleos de Venezuela S.A., | 175 | 172 | ||||||
Poland Government Bond, | 1,652 | 509 | ||||||
South Africa Government Bond, | 4,502 | 424 | ||||||
Turkey Government Bond, | 3,970 | 1,736 | ||||||
Total Short-Term Investments | ||||||||
(Cost $4,531) | 4,287 | |||||||
Total Investments – 96.8% | ||||||||
(Cost $131,639) | 128,124 | |||||||
Other Assets less Liabilities – 3.2% | 4,211 | |||||||
NET ASSETS – 100.0% | $132,335 |
(1) | Principal amount is denoted in Indonesian Rupiah. |
(2) | 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. The value of these securities is determined by valuations supplied by a pricing service or brokers, or if not available in accordance with procedures established by the Trustees of Northern Funds. |
(3) | Restricted security that has been deemed illiquid. At September 30, 2014, the value of these restricted illiquid securities amounted to approximately $4,933,000 or 3.7% of net assets. Additional information on these restricted illiquid securities is as follows: |
SECURITY | ACQUISITION AND ENFORCEABLE DATE | ACQUISITION (000s) | ||||
Avianca Holdings S.A./Avianca Leasing LLC/Grupo Taca Holdings Ltd., 8.38%, 5/10/20 | 4/1/14 | $209 | ||||
Banco do Brasil S.A., 9.00%, 6/18/24 | 6/11/14 | 300 | ||||
BCP Singapore VI Cayman Financing Co. Ltd., 8.00%, 4/15/21 | 3/24/14 | 205 | ||||
Cemex S.A.B. de C.V., 5.70%, 1/11/25 | 9/4/14 | 200 | ||||
Comcel Trust, 6.88%, 2/6/24 | 2/7/14 | 205 | ||||
ContourGlobal Power Holdings S.A., 7.13%, 6/1/19 | 5/12/14 | 204 | ||||
Credito Real S.A.B. de C.V., 7.50%, 3/13/19 | 3/6/14 | 200 | ||||
Diamond Bank PLC, 8.75%, 5/21/19 | 5/14/14 | 198 | ||||
Empresas ICA S.A.B. de C.V., 8.88%, 5/29/24 | 5/21/14 | 196 | ||||
FBN Finance Co. B.V., 8.00%, 7/23/21 | 8/4/14 | 205 | ||||
Gol LuxCo S.A., 8.88%, 1/24/22 | 9/18/14 | 197 | ||||
Greenko Dutch B.V., 8.00%, 8/1/19 | 7/24/14 | 225 | ||||
Kosmos Energy Ltd., 7.88%, 8/1/21 | 7/25/14-8/20/14 | 405 | ||||
Maoye International Holdings Ltd., 7.75%, 5/19/17 | 5/12/14 | 200 | ||||
Mastellone Hermanos S.A., 12.63%, 7/3/21 | 6/26/14 | 145 | ||||
MIE Holdings Corp., 7.50%, 4/25/19 | 4/15/14 | 198 | ||||
NostrumOil &Gas Finance B.V., 6.38%, 2/14/19 | 2/11/14 | 201 | ||||
OAS Finance Ltd., 8.00%, 7/2/21 | 6/25/14 | 200 | ||||
Odebrecht Offshore Drilling Finance Ltd., 6.63%, 10/1/22 | 3/17/14 | 200 | ||||
Pacific Rubiales Energy Corp., 5.63%, 1/19/25 | 9/15/14 | 198 | ||||
Unifin Financiera S.A.P.I. de C.V. SOFOM ENR, 6.25%, 7/22/19 | 7/15/14 | 199 |
(4) | Zero coupon bond reflects effective yield on the date of purchase. |
(5) | Principal amount is denoted in Brazilian Real. |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 60 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
(6) | Principal amount is denoted in Colombian Peso. |
(7) | Principal amount is denoted in Hungarian Forint. |
(8) | Principal amount is denoted in Malaysian Ringgit. |
(9) | Principal amount is denoted in Mexican Peso. |
(10) | Principal amount is denoted in Nigerian Naira. |
(11) | Principal amount is denoted in Peruvian Nuevo Sol. |
(12) | Principal amount is denoted in Philippine Peso. |
(13) | Principal amount is denoted in Polish Zloty. |
(14) | Principal amount is denoted in Romanian Leu. |
(15) | Principal amount is denoted in Russian Ruble. |
(16) | Principal amount is denoted in South African Rand. |
(17) | Principal amount is denoted in Thai Baht. |
(18) | Principal amount is denoted in Turkish Lira. |
(19) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
(20) | At March 31, 2014, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $11,363,000 with net purchases of approximately $480,000 during the six months ended September 30, 2014. |
Percentages shown are based on Net Assets.
At September 30, 2014, the credit quality distribution for the Fund as a percentage of investments including cash was:
QUALITY DISTRIBUTION* | % OF INVESTMENTS | |||
AA | 0.6% | |||
A | 14.4 | |||
BBB | 35.4 | |||
BB | 20.0 | |||
B | 10.4 | |||
CCC or Below | 6.3 | |||
Non-Rated | 4.9 | |||
Cash Equivalents | 8.0 | |||
Total | 100.0% |
* Credit quality ratings are compiled from two external rating agencies: Moody’s and Standard & Poor’s. The Fund reports the lowest rating of the two in the event there are any differences between them. If neither of these rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). Government securities consist of obligations issued or guaranteed by the U.S. Treasury. The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.
At September 30, 2014, the industry sectors for the Fund were:
INDUSTRY SECTOR | % OF LONG TERM INVESTMENTS | |||
Basic Materials | 1.0% | |||
Communications | 0.8 | |||
Consumer, Cyclical | 0.7 | |||
Consumer, Non-cyclical | 0.2 | |||
Diversified | 0.2 | |||
Energy | 9.0 | |||
Financial | 3.6 | |||
Government | 83.4 | |||
Industrial | 0.9 | |||
Technology | 0.2 | |||
Total | 100.0% |
At September 30, 2014, the Fund’s investments were denominated in the following currencies:
CONCENTRATION BY CURRENCY | % OF LONG-TERM INVESTMENTS | |||
United States Dollar | 55.1% | |||
Brazilian Real | 6.3 | |||
Mexican Peso | 6.0 | |||
All other currencies less than 5% | 32.6 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 61 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER EMERGING MARKETS DEBT OPPORTUNITY FUND continued
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Corporate Bonds | $– | $– | $1,708 | (1) | $1,708 | |||||||||||
Foreign Issuer Bonds | ||||||||||||||||
Argentina | – | 357 | 145 | 502 | ||||||||||||
Brazil | – | 8,572 | 192 | 8,764 | ||||||||||||
British Virgin | – | 193 | 193 | |||||||||||||
Georgia | – | 224 | 212 | 436 | ||||||||||||
Iraq | – | 1,007 | 1,007 | |||||||||||||
Mexico | – | 11,965 | 526 | 12,491 | ||||||||||||
Slovakia | – | – | 292 | 292 | ||||||||||||
Thailand | – | 1,900 | 390 | 2,290 | ||||||||||||
Ukraine | – | 506 | 85 | 591 | ||||||||||||
All Other Countries | – | 83,720 | (1) | – | 83,720 | |||||||||||
Investment Companies | 11,843 | – | – | 11,843 | ||||||||||||
Short-Term Investments | ||||||||||||||||
Nigeria | – | – | 303 | 303 | ||||||||||||
All Other Countries | – | 3,984 | – | 3,984 | ||||||||||||
Total Investments | $11,843 | $111,228 | $5,053 | $128,124 |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1 or Level 2 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 62 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED)
The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:
BALANCE AS OF 3/31/14 (000s) | ACCRUED DISCOUNTS (PREMIUMS) (000s) | REALIZED GAINS LOSSES (000s) | CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) (000s) | PURCHASES (000s) | SALES (000s) | TRANSFERS LEVEL 3 | TRANSFERS OUT OF LEVEL 3 (000s) | BALANCE AS OF 9/30/14 (000s) | CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) FROM INVESTMENTS STILL HELD AT 9/30/14 (000s) | |||||||||||||||||||||||||||||||
Corporate Bonds |
| |||||||||||||||||||||||||||||||||||||||
United States | $ | – | $ | 2 | $ | (4 | ) | $ | (96 | ) | $ | 2,059 | $ | (253 | ) | $ | – | $ | – | $ | 1,708 | $ | (96 | ) | ||||||||||||||||
Foreign Issuer Bonds |
| |||||||||||||||||||||||||||||||||||||||
Argentina | – | – | – | – | 145 | – | – | – | 145 | – | ||||||||||||||||||||||||||||||
Brazil | – | 15 | 22 | (16 | ) | 1,228 | (1,057 | ) | – | – | 192 | (16 | ) | |||||||||||||||||||||||||||
British Virgin Islands | – | – | – | (6 | ) | 199 | – | – | – | 193 | (6 | ) | ||||||||||||||||||||||||||||
Georgia | – | – | – | – | – | – | 212 | – | 212 | 1 | ||||||||||||||||||||||||||||||
Iraq | – | – | – | – | – | – | 1,007 | – | 1,007 | 19 | ||||||||||||||||||||||||||||||
Mexico | – | 1 | – | (2 | ) | 256 | – | 271 | – | 526 | (3 | ) | ||||||||||||||||||||||||||||
Slovakia | – | – | – | (4 | ) | 296 | – | – | – | 292 | (4 | ) | ||||||||||||||||||||||||||||
Thailand | – | – | – | – | – | – | 390 | – | 390 | 2 | ||||||||||||||||||||||||||||||
Ukraine | – | – | – | (9 | ) | 94 | – | – | – | 85 | (9 | ) | ||||||||||||||||||||||||||||
Short-Term Investments |
| |||||||||||||||||||||||||||||||||||||||
Nigeria | – | – | – | (1 | ) | 92 | – | 212 | – | 303 | 2 | |||||||||||||||||||||||||||||
Total | $ | – | $ | 18 | $ | 18 | $ | (134 | ) | $ | 4,369 | $ | (1,310 | ) | $ | 2,092 | $ | – | $ | 5,053 | $ | (110 | ) |
(1) | The Transfers Into Level 3, noted above, were due to the Fund receiving an evaluated price from a third party provider. |
The Fund valued the securities included in the balance as of 9/30/14 above using an evaluated price from a third party vendor.
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 63 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
ASSET-BACKED SECURITIES – 2.3% | ||||||||
Commercial Mortgage-Backed Securities – 0.5% |
| |||||||
GS Mortgage Securities Trust, Series 2007-GG10, Class AM, | $1,760 | $1,825 | ||||||
Hilton USA Trust, Series 2013-HLT, Class EFX, | 1,020 | 1,036 | ||||||
2,861 | ||||||||
Other – 0.2% | ||||||||
Countrywide Asset-Backed Certificates, Series 2004-13, Class AF5B, | 225 | 221 | ||||||
Sierra Timeshare Receivables Funding LLC, Series 2011-3A, Class C, | 290 | 312 | ||||||
Springleaf Funding Trust, Series 2014-AA, Class C, | 575 | 572 | ||||||
1,105 | ||||||||
Whole Loan – 1.6% | ||||||||
Banc of America Alternative Loan Trust, Series 2003-10, Class 3A1, | 337 | 346 | ||||||
Banc of America Alternative Loan Trust, Series 2003-8, Class 1CB1, | 239 | 246 | ||||||
Banc of America Alternative Loan Trust, Series 2004-9, Class 2CB1, | 1,156 | 1,195 | ||||||
Banc of America Funding Trust, Series 2005-7, Class 3A1, | 263 | 270 | ||||||
Banc of America Mortgage Trust, Series 2005-A, Class 2A1, | 72 | 71 | ||||||
Bear Stearns ARM Trust, Series 2004-9, Class 12A3, | 125 | 124 | ||||||
Citicorp Mortgage Securities Trust, Series 2006-4, Class 1A2, | 142 | 145 | ||||||
Citigroup Mortgage Loan Trust, Inc., Series 2005-2, Class 1A4, | 125 | 123 | ||||||
CitiMortgage Alternative Loan Trust, Series 2006-A3, Class 1A7, | 146 | 131 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
ASSET-BACKED SECURITIES – 2.3% – continued | ||||||||
Whole Loan – 1.6% – continued |
| |||||||
Countrywide Alternative Loan Trust, Series 2004-27CB, Class A1, | $636 | $636 | ||||||
Countrywide Alternative Loan Trust, Series 2005-14, Class 2A1, | 559 | 479 | ||||||
Countrywide Alternative Loan Trust, Series 2006-J4, Class 1A3, | 432 | 296 | ||||||
Countrywide Home Loan Mortgage Pass-Through Trust, Series 2006-20, Class 1A35, | 400 | 375 | ||||||
GMACM Mortgage Loan Trust, Series 2003-J7, Class A7, | 73 | 76 | ||||||
GMACM Mortgage Loan Trust, Series 2005-AR4, Class 3A1, | 512 | 480 | ||||||
GSR Mortgage Loan Trust, Series 2004-14, Class 5A1, | 359 | 358 | ||||||
GSR Mortgage Loan Trust, Series 2005-AR4, Class 4A1, | 184 | 172 | ||||||
GSR Mortgage Loan Trust, Series 2006-8F, Class 4A17, | 255 | 209 | ||||||
IndyMac INDX Mortgage Loan Trust, Series 2005-16IP, Class A1, | 526 | 495 | ||||||
JP Morgan Alternative Loan Trust, Series 2006-A1, Class 5A1, | 162 | 132 | ||||||
JP Morgan Mortgage Trust, Series 2005-S3, Class 1A9, | 440 | 399 | ||||||
MASTR Adjustable Rate Mortgages Trust, Series 2005-2, Class 3A1, | 601 | 537 | ||||||
New York Mortgage Trust, Series 2006-1, Class 2A2, | 202 | 184 | ||||||
RALI Trust, Series 2006-QS6, Class 1A16, | 598 | 483 | ||||||
Residential Asset Securitization Trust, Series 2006-A2, Class A11, | 500 | 409 |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 64 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
ASSET-BACKED SECURITIES – 2.3% – continued | ||||||||
Whole Loan – 1.6% – continued | ||||||||
RFMSI Trust, Series 2006-S1, Class 1A3, | $447 | $460 | ||||||
Structured Adjustable Rate Mortgage Loan Trust, Series 2005-14, Class A1, | 512 | 386 | ||||||
WaMu Mortgage Pass-Through Certificates, Series 2006-AR11, Class 2A, | 455 | 426 | ||||||
WaMu Mortgage Pass-Through Certificates, Series 2006-AR19, Class 2A, | 572 | 549 | ||||||
10,192 | ||||||||
Total Asset-Backed Securities | ||||||||
(Cost $13,150) | 14,158 | |||||||
| ||||||||
CONVERTIBLE BONDS – 3.3% | ||||||||
Apparel & Textile Products – 0.1% |
| |||||||
Iconix Brand Group, Inc., | 790 | 996 | ||||||
Automobiles Manufacturing – 0.1% | ||||||||
Ford Motor Co., | 280 | 480 | ||||||
Biotechnology – 0.2% | ||||||||
Gilead Sciences, Inc., | 220 | 1,027 | ||||||
Coal Operations – 0.1% | ||||||||
Peabody Energy Corp., | 1,085 | 743 | ||||||
Communications Equipment – 0.1% | ||||||||
Ciena Corp., | 240 | 279 | ||||||
JDS Uniphase Corp., | 260 | 260 | ||||||
539 | ||||||||
Exploration & Production – 0.1% | ||||||||
Chesapeake Energy Corp., | 525 | 529 | ||||||
Homebuilders – 0.8% | ||||||||
KB Home, | 570 | 549 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CONVERTIBLE BONDS – 3.3% – continued | ||||||||
Homebuilders – 0.8% – continued | ||||||||
Lennar Corp., | $425 | $752 | ||||||
3.25%, 11/15/21 (1) | 800 | 1,372 | ||||||
Ryland Group (The), Inc., | 675 | 832 | ||||||
Standard Pacific Corp., | 1,105 | 1,244 | ||||||
4,749 | ||||||||
Internet Media – 0.0% | ||||||||
Priceline Group (The), Inc., | 240 | 323 | ||||||
Leisure Products Manufacturing – 0.1% | ||||||||
Jarden Corp., | 430 | 429 | ||||||
Pharmaceuticals – 0.3% | ||||||||
Emergent Biosolutions, Inc., | 738 | 742 | ||||||
Mylan, Inc., | 260 | 888 | ||||||
1,630 | ||||||||
Railroad – 0.3% | ||||||||
Trinity Industries, Inc., | 990 | 1,922 | ||||||
Real Estate – 0.1% | ||||||||
iStar Financial, Inc., | 585 | 738 | ||||||
Retail – Consumer Discretionary – 0.1% | ||||||||
MercadoLibre, Inc., | 535 | 580 | ||||||
Semiconductors – 0.5% | ||||||||
Micron Technology, Inc., | 575 | 2,049 | ||||||
Novellus Systems, Inc., | 160 | 349 | ||||||
Xilinx, Inc., | 325 | 481 | ||||||
2,879 | ||||||||
Software & Services – 0.1% | ||||||||
Palo Alto Networks, Inc., | 550 | 611 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 65 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CONVERTIBLE BONDS – 3.3% – continued | ||||||||
Transportation & Logistics – 0.2% |
| |||||||
Hornbeck Offshore Services, Inc., | $1,200 | $1,175 | ||||||
Macquarie Infrastructure Co. LLC, | 130 | 144 | ||||||
1,319 | ||||||||
Wireline Telecommunications Services – 0.1% |
| |||||||
Axtel S.A.B. de C.V., | 117 | 17 | ||||||
Level 3 Communications, Inc., | 485 | 827 | ||||||
844 | ||||||||
Total Convertible Bonds | ||||||||
(Cost $14,647) | 20,338 | |||||||
CORPORATE BONDS – 69.8% | ||||||||
Aerospace & Defense – 0.9% | ||||||||
Meccanica Holdings USA, Inc., | 1,705 | 1,782 | ||||||
TransDigm, Inc., | 2,180 | 2,115 | ||||||
6.00%, 7/15/22 (1) | 1,000 | 987 | ||||||
6.50%, 7/15/24 (1) | 750 | 747 | ||||||
5,631 | ||||||||
Airlines – 0.1% | ||||||||
Continental Airlines Pass-Through Trust, Series 2007-1, Class B, | 105 | 113 | ||||||
United Airlines Pass-Through Trust, Series 2014-1, Class B, | 335 | 339 | ||||||
452 | ||||||||
Apparel & Textile Products – 0.1% | ||||||||
Nine West Holdings, Inc., | 630 | 439 | ||||||
Auto Parts Manufacturing – 0.1% | ||||||||
Goodyear Tire & Rubber (The) Co., | 295 | 307 | ||||||
Automobiles Manufacturing – 0.4% | ||||||||
Chrysler Group LLC/CG Co-Issuer, Inc., | 590 | 626 | ||||||
8.25%, 6/15/21 | 720 | 785 | ||||||
General Motors Co., | 215 | 252 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 69.8% – continued | ||||||||
Automobiles Manufacturing – 0.4% – continued |
| |||||||
General Motors Financial Co., Inc., | $335 | $337 | ||||||
4.38%, 9/25/21 | 685 | 700 | ||||||
2,700 | ||||||||
Cable & Satellite – 2.5% | ||||||||
CCO Holdings LLC/CCO Holdings Capital Corp., | 1,060 | 1,101 | ||||||
8.13%, 4/30/20 | 205 | 217 | ||||||
5.25%, 9/30/22 | 965 | 944 | ||||||
5.13%, 2/15/23 | 575 | 552 | ||||||
5.75%, 1/15/24 | 20 | 20 | ||||||
Cequel Communications Holdings I LLC/Cequel Capital Corp., | 1,205 | 1,240 | ||||||
5.13%, 12/15/21 (1) | 971 | 928 | ||||||
CSC Holdings LLC, | 435 | 486 | ||||||
DISH DBS Corp., | 1,175 | 1,172 | ||||||
6.75%, 6/1/21 | 655 | 704 | ||||||
RCN Telecom Services LLC/RCN Capital Corp., | 7,580 | 7,732 | ||||||
Wave Holdco LLC/Wave Holdco Corp., | 150 | 154 | ||||||
15,250 | ||||||||
Casinos & Gaming – 2.8% | ||||||||
Caesars Entertainment Operating Co., Inc., | 4,630 | 3,594 | ||||||
GLP Capital L.P./GLP Financing II, Inc., | 290 | 294 | ||||||
4.88%, 11/1/20 | 1,255 | 1,280 | ||||||
5.38%, 11/1/23 | 445 | 454 | ||||||
Graton Economic Development Authority, | 1,820 | 2,079 | ||||||
Isle of Capri Casinos, Inc., | 555 | 590 | ||||||
5.88%, 3/15/21 | 715 | 724 | ||||||
MGM Resorts International, | 1,050 | 1,184 | ||||||
6.75%, 10/1/20 | 1,000 | 1,065 | ||||||
7.75%, 3/15/22 | 250 | 278 |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 66 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 69.8% – continued | ||||||||
Casinos & Gaming – 2.8% – continued |
| |||||||
MTR Gaming Group, Inc., | $1,120 | $1,222 | ||||||
Peninsula Gaming LLC/Peninsula Gaming Corp., | 540 | 564 | ||||||
Pinnacle Entertainment, Inc., | 800 | 832 | ||||||
6.38%, 8/1/21 | 470 | 491 | ||||||
7.75%, 4/1/22 | 795 | 865 | ||||||
Station Casinos LLC, | 1,455 | 1,517 | ||||||
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., | 496 | 526 | ||||||
17,559 | ||||||||
Chemicals – 0.9% | ||||||||
Axalta Coating Systems US Holdings, Inc./Axalta Coating Systems Dutch Holding B, | 415 | 445 | ||||||
Hercules, Inc., | 1,960 | 1,744 | ||||||
Hexion US Finance Corp./Hexion Nova Scotia Finance ULC, | 30 | 29 | ||||||
Huntsman International LLC, | 370 | 390 | ||||||
4.88%, 11/15/20 | 670 | 660 | ||||||
8.63%, 3/15/21 | 545 | 589 | ||||||
PQ Corp., | 1,690 | 1,793 | ||||||
5,650 | ||||||||
Coal Operations – 3.9% | ||||||||
Alpha Natural Resources, Inc., | 795 | 580 | ||||||
6.00%, 6/1/19 | 1,858 | 1,124 | ||||||
6.25%, 6/1/21 | 1,890 | 1,099 | ||||||
Arch Coal, Inc., | 550 | 319 | ||||||
7.25%, 6/15/21 | 305 | 147 | ||||||
CONSOL Energy, Inc., | 2,445 | 2,408 | ||||||
Foresight Energy LLC/Foresight Energy Corp., | 10,250 | 10,788 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 69.8% – continued | ||||||||
Coal Operations – 3.9% – continued |
| |||||||
Peabody Energy Corp., | $1,170 | $1,147 | ||||||
6.25%, 11/15/21 | 7,040 | 6,547 | ||||||
24,159 | ||||||||
Commercial Finance – 1.0% | ||||||||
CIT Group, Inc., | 885 | 949 | ||||||
3.88%, 2/19/19 | 600 | 589 | ||||||
5.38%, 5/15/20 | 415 | 428 | ||||||
5.00%, 8/15/22 | 1,155 | 1,158 | ||||||
International Lease Finance Corp., | 385 | 382 | ||||||
6.25%, 5/15/19 | 905 | 970 | ||||||
8.63%, 1/15/22 | 745 | 909 | ||||||
Jefferies Finance LLC/JFIN Co-Issuer Corp., | 750 | 739 | ||||||
6,124 | ||||||||
Communications Equipment – 1.5% | ||||||||
Alcatel-Lucent USA, Inc., | 50 | 47 | ||||||
6.45%, 3/15/29 | 4,595 | 4,331 | ||||||
CommScope, Inc., | 590 | 578 | ||||||
5.50%, 6/15/24 (1) | 260 | 256 | ||||||
CyrusOne L.P./CyrusOne Finance Corp., | 4,098 | 4,282 | ||||||
9,494 | ||||||||
Construction Materials Manufacturing – 0.2% |
| |||||||
USG Corp., | 695 | 723 | ||||||
5.88%, 11/1/21 (1) | 285 | 291 | ||||||
1,014 | ||||||||
Consumer Finance – 2.9% | ||||||||
Ally Financial, Inc., | 1,270 | 1,479 | ||||||
5.13%, 9/30/24 | 905 | 887 | ||||||
First Data Corp., | 505 | 532 | ||||||
11.25%, 1/15/21 | 594 | 676 | ||||||
12.63%, 1/15/21 | 3,057 | 3,661 | ||||||
10.63%, 6/15/21 | 429 | 488 | ||||||
11.75%, 8/15/21 | 364 | 421 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 67 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 69.8% – continued | ||||||||
Consumer Finance – 2.9% – continued |
| |||||||
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., | $1,850 | $1,831 | ||||||
Navient Corp., | 1,385 | 1,385 | ||||||
Navient LLC, | 390 | 398 | ||||||
5.50%, 1/25/23 | 1,090 | 1,048 | ||||||
6.13%, 3/25/24 | 1,365 | 1,331 | ||||||
Provident Funding Associates L.P./PFG Finance Corp., | 510 | 505 | ||||||
Springleaf Finance Corp., | 60 | 61 | ||||||
7.75%, 10/1/21 | 1,105 | 1,238 | ||||||
8.25%, 10/1/23 | 440 | 495 | ||||||
Stearns Holdings, Inc., | 282 | 289 | ||||||
Walter Investment Management Corp., | 1,280 | 1,261 | ||||||
17,986 | ||||||||
Consumer Products – 2.2% | ||||||||
First Quality Finance Co., Inc., | 2,180 | 2,033 | ||||||
Harbinger Group, Inc., | 946 | 1,007 | ||||||
7.75%, 1/15/22 | 8,414 | 8,351 | ||||||
Spectrum Brands, Inc., | 2,150 | 2,258 | ||||||
13,649 | ||||||||
Consumer Services – 1.4% | ||||||||
Anna Merger Sub, Inc., | 465 | 467 | ||||||
APX Group, Inc., | 230 | 223 | ||||||
8.75%, 12/1/20 | 1,390 | 1,265 | ||||||
8.75%, 12/1/20 (1)(2) | 230 | 209 | ||||||
Ceridian LLC/Comdata, Inc., | 510 | 511 | ||||||
RR Donnelley & Sons Co., | 910 | 1,060 | ||||||
7.63%, 6/15/20 | 1,065 | 1,172 | ||||||
7.88%, 3/15/21 | 790 | 867 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 69.8% – continued | ||||||||
Consumer Services – 1.4% – continued |
| |||||||
7.00%, 2/15/22 | $215 | $227 | ||||||
6.50%, 11/15/23 | 400 | 399 | ||||||
6.00%, 4/1/24 | 370 | 365 | ||||||
Service Corp. International, | 455 | 456 | ||||||
United Rentals North America, Inc., | 505 | 537 | ||||||
8.25%, 2/1/21 | 1,035 | 1,120 | ||||||
8,878 | ||||||||
Containers & Packaging – 1.0% | ||||||||
Berry Plastics Corp., | 1,990 | 2,204 | ||||||
5.50%, 5/15/22 | 273 | 263 | ||||||
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu, | 655 | 696 | ||||||
9.88%, 8/15/19 | 1,425 | 1,533 | ||||||
5.75%, 10/15/20 | 300 | 305 | ||||||
6.88%, 2/15/21 | 505 | 533 | ||||||
8.25%, 2/15/21 | 415 | 439 | ||||||
5,973 | ||||||||
Department Stores – 0.2% | ||||||||
Dillard’s, Inc., | 495 | 542 | ||||||
7.75%, 5/15/27 | 465 | 509 | ||||||
JC Penney Corp., Inc., | 55 | 51 | ||||||
8.13%, 10/1/19 | 205 | 200 | ||||||
1,302 | ||||||||
Distributors – Consumer Discretionary – 0.5% |
| |||||||
LKQ Corp., | 3,060 | 2,953 | ||||||
Electrical Equipment Manufacturing – 0.3% |
| |||||||
WESCO Distribution, Inc., | 1,590 | 1,578 | ||||||
Entertainment Content – 0.3% | ||||||||
AMC Networks, Inc., | 368 | 401 | ||||||
WMG Acquisition Corp., | 1,560 | 1,494 | ||||||
1,895 |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 68 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 69.8% – continued | ||||||||
Entertainment Resources – 1.1% |
| |||||||
24 Hour Holdings III LLC, | $3,805 | $3,520 | ||||||
Cedar Fair L.P./Canada’s Wonderland Co./Magnum Management Corp., | 805 | 793 | ||||||
Mohegan Tribal Gaming Authority, | 540 | 537 | ||||||
9.75%, 9/1/21 | 1,955 | 1,977 | ||||||
6,827 | ||||||||
Exploration & Production – 9.4% | ||||||||
Antero Resources Corp., | 1,045 | 1,016 | ||||||
Antero Resources Finance Corp., | 355 | 353 | ||||||
BreitBurn Energy Partners L.P./BreitBurn Finance Corp., | 490 | 510 | ||||||
7.88%, 4/15/22 | 2,900 | 2,936 | ||||||
California Resources Corp., | 245 | 249 | ||||||
5.50%, 9/15/21 (1)(2)(5) | 1,045 | 1,061 | ||||||
6.00%, 11/15/24 (1)(2)(5) | 1,085 | 1,115 | ||||||
Chesapeake Energy Corp., | 415 | 450 | ||||||
6.63%, 8/15/20 | 420 | 463 | ||||||
4.88%, 4/15/22 | 1,620 | 1,628 | ||||||
Cimarex Energy Co., | 485 | 521 | ||||||
Concho Resources, Inc., | 951 | 989 | ||||||
Denbury Resources, Inc., | 1,290 | 1,193 | ||||||
EP Energy LLC/Everest Acquisition Finance, Inc., | 3,153 | 3,437 | ||||||
EXCO Resources, Inc., | 405 | 387 | ||||||
8.50%, 4/15/22 | 1,765 | 1,677 | ||||||
Halcon Resources Corp., | 480 | 488 | ||||||
Jones Energy Holdings LLC/Jones Energy Finance Corp., | 230 | 230 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 69.8% – continued | ||||||||
Exploration & Production – 9.4% – continued |
| |||||||
Legacy Reserves L.P./Legacy Reserves Finance Corp., | $900 | $936 | ||||||
6.63%, 12/1/21 | 3,120 | 3,058 | ||||||
6.63%, 12/1/21 (1) | 1,850 | 1,813 | ||||||
Linn Energy LLC/Linn Energy Finance Corp., | 1,115 | 1,089 | ||||||
8.63%, 4/15/20 | 980 | 1,013 | ||||||
7.75%, 2/1/21 | 2,231 | 2,248 | ||||||
Linn Energy LLC/Linn Energy Finance Corp., | 1,625 | 1,584 | ||||||
Memorial Production Partners L.P./Memorial Production Finance Corp., | 4,131 | 4,110 | ||||||
Memorial Production Partners L.P./Memorial Production Finance Corp., | 2,360 | 2,254 | ||||||
Newfield Exploration Co., | 2,035 | 2,183 | ||||||
5.63%, 7/1/24 | 1,135 | 1,214 | ||||||
QEP Resources, Inc., | 10 | 10 | ||||||
5.25%, 5/1/23 | 1,075 | 1,043 | ||||||
Range Resources Corp., | 395 | 415 | ||||||
5.00%, 8/15/22 | 713 | 729 | ||||||
Rex Energy Corp., | 640 | 688 | ||||||
6.25%, 8/1/22 (1)(2) | 2,930 | 2,827 | ||||||
Rice Energy, Inc., | 620 | 605 | ||||||
Rosetta Resources, Inc., | 820 | 800 | ||||||
5.88%, 6/1/22 | 2,550 | 2,540 | ||||||
5.88%, 6/1/24 | 555 | 545 | ||||||
RSP Permian, Inc., | 1,500 | 1,509 | ||||||
Sanchez Energy Corp., | 285 | 282 | ||||||
SandRidge Energy, Inc., | 2,223 | 2,167 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 69 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 69.8% – continued | ||||||||
Exploration & Production – 9.4% – continued |
| |||||||
8.13%, 10/15/22 | $260 | $260 | ||||||
7.50%, 2/15/23 | 2,415 | 2,346 | ||||||
Whiting Petroleum Corp., | 615 | 632 | ||||||
WPX Energy, Inc., | 290 | 281 | ||||||
57,884 | ||||||||
Financial Services – 1.0% | ||||||||
Icahn Enterprises L.P./Icahn Enterprises Finance Corp., | 2,600 | 2,561 | ||||||
5.88%, 2/1/22 | 355 | 355 | ||||||
Morgan Stanley, | 1,300 | 1,253 | ||||||
Opal Acquisition, Inc., | 1,120 | 1,157 | ||||||
Rio Oil Finance Trust, Series 2014-1, | 545 | 562 | ||||||
5,888 | ||||||||
Food & Beverage – 0.4% | ||||||||
Constellation Brands, Inc., | 455 | 444 | ||||||
Crestview DS Merger Sub II, Inc., | 690 | 762 | ||||||
Post Holdings, Inc., | 1,030 | 943 | ||||||
TreeHouse Foods, Inc., | 325 | 320 | ||||||
2,469 | ||||||||
Hardware – 0.3% | ||||||||
Zebra Technologies Corp., | 1,850 | 1,850 | ||||||
Health Care Facilities & Services – 7.7% | ||||||||
Acadia Healthcare Co., Inc., | 3,200 | 3,296 | ||||||
5.13%, 7/1/22 | 2,300 | 2,243 | ||||||
Amsurg Corp., | 693 | 700 | ||||||
5.63%, 7/15/22 (1)(2) | 1,155 | 1,143 | ||||||
BioScrip, Inc., | 385 | 394 | ||||||
CHS/Community Health Systems, Inc., | 450 | 462 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 69.8% – continued | ||||||||
Health Care Facilities & Services – 7.7% – continued |
| |||||||
8.00%, 11/15/19 | $455 | $486 | ||||||
5.13%, 8/1/21 (1)(2) | 415 | 414 | ||||||
6.88%, 2/1/22 (1)(2) | 2,705 | 2,813 | ||||||
DaVita HealthCare Partners, Inc., | 4,135 | 4,285 | ||||||
5.13%, 7/15/24 | 1,050 | 1,032 | ||||||
Envision Healthcare Corp., | 3,620 | 3,566 | ||||||
Fresenius Medical Care US Finance II, Inc., | 595 | 626 | ||||||
Fresenius Medical Care US Finance, Inc., | 835 | 916 | ||||||
HCA Holdings, Inc., | 440 | 460 | ||||||
HCA, Inc., | 835 | 912 | ||||||
4.75%, 5/1/23 | 230 | 225 | ||||||
7.50%, 12/15/23 | 260 | 283 | ||||||
5.00%, 3/15/24 | 1,070 | 1,053 | ||||||
8.36%, 4/15/24 | 680 | 782 | ||||||
7.69%, 6/15/25 | 1,310 | 1,441 | ||||||
7.58%, 9/15/25 | 240 | 262 | ||||||
7.05%, 12/1/27 | 70 | 70 | ||||||
7.50%, 11/6/33 | 820 | 861 | ||||||
7.75%, 7/15/36 | 420 | 456 | ||||||
IASIS Healthcare LLC/IASIS Capital Corp., | 935 | 979 | ||||||
Jaguar Holding Co. I, | 1,050 | 1,060 | ||||||
Jaguar Holding Co. II/Jaguar Merger Sub, Inc., | 630 | 676 | ||||||
LifePoint Hospitals, Inc., | 365 | 370 | ||||||
ResCare, Inc., | 1,360 | 1,442 | ||||||
Symbion, Inc., | 500 | 519 | ||||||
Tenet Healthcare Corp., | 870 | 924 | ||||||
5.00%, 3/1/19 (1)(2) | 245 | 242 | ||||||
6.75%, 2/1/20 | 655 | 683 | ||||||
6.00%, 10/1/20 | 3,010 | 3,183 | ||||||
8.13%, 4/1/22 | 1,325 | 1,454 | ||||||
6.88%, 11/15/31 | 2,115 | 2,041 |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 70 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 69.8% – continued | ||||||||
Health Care Facilities & Services – 7.7% – continued |
| |||||||
United Surgical Partners International, Inc., | $3,280 | $3,534 | ||||||
Universal Health Services, Inc., | 445 | 444 | ||||||
4.75%, 8/1/22 (1)(2) | 855 | 854 | ||||||
47,586 | ||||||||
Home Improvement – 1.0% | ||||||||
Atrium Windows & Doors, Inc., | 1,025 | 994 | ||||||
CPG Merger Sub LLC, | 520 | 528 | ||||||
ServiceMaster (The) Co., | 1,537 | 1,626 | ||||||
7.00%, 8/15/20 | 1,407 | 1,463 | ||||||
7.45%, 8/15/27 | 1,535 | 1,550 | ||||||
6,161 | ||||||||
Homebuilders – 1.9% | ||||||||
Beazer Homes USA, Inc., | 865 | 861 | ||||||
D.R. Horton, Inc., | 130 | 125 | ||||||
5.75%, 8/15/23 | 1,340 | 1,390 | ||||||
K Hovnanian Enterprises, Inc., | 1,520 | 1,322 | ||||||
KB Home, | 1,025 | 1,068 | ||||||
7.50%, 9/15/22 | 595 | 637 | ||||||
Lennar Corp., | 1,150 | 1,113 | ||||||
PulteGroup, Inc., | 1,710 | 1,924 | ||||||
Ryland Group (The), Inc., | 375 | 365 | ||||||
Standard Pacific Corp., | 240 | 275 | ||||||
6.25%, 12/15/21 | 515 | 525 | ||||||
Taylor Morrison Communities, Inc./Monarch Communities, Inc., | 965 | 941 | ||||||
Weyerhaeuser Real Estate Co., | 1,070 | 1,046 | ||||||
11,592 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 69.8% – continued | ||||||||
Industrial Other – 0.8% |
| |||||||
AECOM Technology Corp., | $245 | $246 | ||||||
Building Materials Holding Corp., | 470 | 510 | ||||||
Kratos Defense & Security Solutions, Inc., 7.00%, 5/15/19 (1)(2) | 455 | 451 | ||||||
Sabine Pass Liquefaction LLC, | 510 | 537 | ||||||
SBA Telecommunications, Inc., | 2,860 | 2,910 | ||||||
Signode Industrial Group Lux S.A./Signode Industrial Group US, Inc., | 485 | 466 | ||||||
5,120 | ||||||||
Internet Media – 1.1% | ||||||||
Ancestry.com, Inc., | 890 | 890 | ||||||
11.00%, 12/15/20 | 5,010 | 5,711 | ||||||
IAC/InterActiveCorp, | 410 | 414 | ||||||
7,015 | ||||||||
Machinery Manufacturing – 0.6% | ||||||||
Case New Holland, Inc., | 1,000 | 1,111 | ||||||
Cleaver-Brooks, Inc., | 1,190 | 1,288 | ||||||
Manitowoc (The) Co., Inc., | 595 | 640 | ||||||
Terex Corp., | 395 | 414 | ||||||
6.00%, 5/15/21 | 455 | 473 | ||||||
3,926 | ||||||||
Managed Care – 0.2% | ||||||||
MPH Acquisition Holdings LLC, 6.63%, 4/1/22 (1)(2) | 555 | 560 | ||||||
WellCare Health Plans, Inc., | 433 | 441 | ||||||
1,001 | ||||||||
Manufactured Goods – 0.2% | ||||||||
EnPro Industries, Inc., | 1,230 | 1,248 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 71 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 69.8% – continued | ||||||||
Medical Equipment & Devices Manufacturing – 0.5% |
| |||||||
DJO Finance LLC/DJO Finance Corp., | $475 | $498 | ||||||
Physio-Control International, Inc., | 2,532 | 2,709 | ||||||
3,207 | ||||||||
Metals & Mining – 2.6% | ||||||||
Alcoa, Inc., | 405 | 406 | ||||||
5.90%, 2/1/27 | 780 | 817 | ||||||
6.75%, 1/15/28 | 165 | 187 | ||||||
Century Aluminum Co., | 5,000 | 5,325 | ||||||
Ryerson, Inc./Joseph T Ryerson & Son, Inc., | 5,240 | 5,528 | ||||||
Shale-Inland Holdings LLC/Shale-Inland Finance Corp., | 3,070 | 3,177 | ||||||
Steel Dynamics, Inc., | 515 | 544 | ||||||
15,984 | ||||||||
Oil & Gas Services & Equipment – 0.5% | ||||||||
Forum Energy Technologies, Inc., | 2,170 | 2,230 | ||||||
Hercules Offshore, Inc., | 455 | 433 | ||||||
8.75%, 7/15/21 (1) | 495 | 431 | ||||||
Parker Drilling Co., | 40 | 40 | ||||||
Pioneer Energy Services Corp., | 205 | 203 | ||||||
3,337 | ||||||||
Pharmaceuticals – 1.0% | ||||||||
Endo Finance LLC & Endo Finco, Inc., | 515 | 539 | ||||||
7.25%, 1/15/22 (1)(2) | 245 | 258 | ||||||
5.38%, 1/15/23 (1) | 1,715 | 1,638 | ||||||
Valeant Pharmaceuticals International, | 545 | 563 | ||||||
6.38%, 10/15/20 (1) | 2,000 | 2,055 | ||||||
7.25%, 7/15/22 (1) | 740 | 781 | ||||||
5,834 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 69.8% – continued | ||||||||
Pipeline – 1.3% |
| |||||||
Access Midstream Partners L.P./ACMP Finance Corp., | $300 | $317 | ||||||
6.13%, 7/15/22 | 825 | 879 | ||||||
4.88%, 5/15/23 | 345 | 354 | ||||||
4.88%, 3/15/24 | 370 | 378 | ||||||
Energy Transfer Equity L.P., | 655 | 729 | ||||||
5.88%, 1/15/24 | 510 | 516 | ||||||
MarkWest Energy Partners L.P./MarkWest Energy Finance Corp., | 818 | 793 | ||||||
Regency Energy Partners L.P./Regency Energy Finance Corp., | 315 | 331 | ||||||
5.88%, 3/1/22 | 1,115 | 1,160 | ||||||
5.50%, 4/15/23 | 430 | 435 | ||||||
4.50%, 11/1/23 | 1,155 | 1,117 | ||||||
Regency Energy Partners L.P./Regency Energy | ||||||||
5.75%, 9/1/20 | 515 | 536 | ||||||
Rose Rock Midstream L.P./Rose Rock Finance Corp., | 450 | 446 | ||||||
Targa Resources Partners L.P./Targa Resources Partners Finance Corp., | 165 | 158 | ||||||
8,149 | ||||||||
Power Generation – 1.0% | ||||||||
Calpine Corp., | 265 | 280 | ||||||
5.38%, 1/15/23 | 1,095 | 1,060 | ||||||
NRG Energy, Inc., | 1,500 | 1,650 | ||||||
8.25%, 9/1/20 | 1,810 | 1,939 | ||||||
7.88%, 5/15/21 | 185 | 199 | ||||||
6.25%, 7/15/22 (1)(2) | 1,180 | 1,210 | ||||||
6,338 | ||||||||
Property & Casualty Insurance – 0.2% | ||||||||
Hockey Merger Sub 2, Inc., | 1,010 | 1,034 | ||||||
Publishing & Broadcasting – 3.6% | ||||||||
Clear Channel Worldwide Holdings, Inc., | 3,040 | 3,131 |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 72 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 69.8% – continued | ||||||||
Publishing & Broadcasting – 3.6% – continued |
| |||||||
7.63%, 3/15/20 | $1,975 | $2,049 | ||||||
6.50%, 11/15/22 | 2,855 | 2,891 | ||||||
6.50%, 11/15/22 | 1,085 | 1,109 | ||||||
Cumulus Media Holdings, Inc., | 1,350 | 1,384 | ||||||
Gannett Co., Inc., | 1,005 | 1,015 | ||||||
5.13%, 7/15/20 | 590 | 592 | ||||||
4.88%, 9/15/21 (1)(2) | 95 | 92 | ||||||
5.50%, 9/15/24 (1)(2) | 145 | 143 | ||||||
iHeartCommunications, Inc., | 815 | 683 | ||||||
6.88%, 6/15/18 | 308 | 291 | ||||||
9.00%, 12/15/19 | 580 | 584 | ||||||
11.25%, 3/1/21 | 1,167 | 1,243 | ||||||
7.25%, 10/15/27 | 180 | 150 | ||||||
Nielsen Finance LLC/Nielsen Finance Co., | 885 | 865 | ||||||
Sirius XM Holdings, Inc., | 2,060 | 2,086 | ||||||
Sirius XM Radio, Inc., | 4,000 | 4,020 | ||||||
Univision Communications, Inc., | 125 | 130 | ||||||
22,458 | ||||||||
Real Estate – 0.9% | ||||||||
Iron Mountain, Inc., | 299 | 311 | ||||||
5.75%, 8/15/24 | 1,545 | 1,516 | ||||||
iStar Financial, Inc., | 700 | 679 | ||||||
5.00%, 7/1/19 | 595 | 573 | ||||||
MPT Operating Partnership L.P./MPT Finance Corp., | 625 | 639 | ||||||
Prologis L.P., | 495 | 492 | ||||||
Realogy Group LLC, | 460 | 492 | ||||||
Rialto Holdings LLC/Rialto Corp., | 1,052 | 1,073 | ||||||
5,775 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 69.8% – continued | ||||||||
Refining & Marketing – 0.0% |
| |||||||
Calumet Specialty Products Partners L.P./Calumet Finance Corp., | $55 | $56 | ||||||
Retail – Consumer Discretionary – 1.4% |
| |||||||
AmeriGas Finance LLC/AmeriGas Finance Corp., | 1,274 | 1,325 | ||||||
7.00%, 5/20/22 | 1,486 | 1,557 | ||||||
Builders FirstSource, Inc., | 730 | 743 | ||||||
Ferrellgas L.P./Ferrellgas Finance Corp., | 1,140 | 1,111 | ||||||
GameStop Corp., | 340 | 336 | ||||||
Hertz (The) Corp., | 495 | 502 | ||||||
L Brands, Inc., | 164 | 180 | ||||||
5.63%, 2/15/22 | 325 | 339 | ||||||
5.63%, 10/15/23 | 555 | 579 | ||||||
Michaels FinCo Holdings LLC/Michaels FinCo, Inc., | 150 | 153 | ||||||
Party City Holdings, Inc., | 1,225 | 1,323 | ||||||
Suburban Propane Partners L.P./Suburban Energy Finance Corp., | 534 | 566 | ||||||
Toys R Us, Inc., | 150 | 103 | ||||||
8,817 | ||||||||
Retail – Consumer Staples – 0.2% |
| |||||||
KeHE Distributors LLC/KeHE Finance Corp., | 1,145 | 1,214 | ||||||
Semiconductors – 0.4% |
| |||||||
Advanced Micro Devices, Inc., | 250 | 239 | ||||||
Amkor Technology, Inc., | 1,495 | 1,559 | ||||||
Freescale Semiconductor, Inc., | 205 | 218 | ||||||
6.00%, 1/15/22 (1) | 495 | 502 | ||||||
2,518 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 73 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 69.8% – continued | ||||||||
Software & Services – 1.7% |
| |||||||
Activision Blizzard, Inc., | $820 | $853 | ||||||
Audatex North America, Inc., | 315 | 323 | ||||||
Blackboard, Inc., | 786 | 778 | ||||||
BMC Software Finance, Inc., | 550 | 528 | ||||||
Nuance Communications, Inc., | 4,380 | 4,281 | ||||||
Sophia Holding Finance L.P./Sophia Holding Finance, Inc., | 795 | 803 | ||||||
Sophia L.P./Sophia Finance, Inc., | 1,545 | 1,661 | ||||||
SunGard Data Systems, Inc., | 128 | 132 | ||||||
6.63%, 11/1/19 | 900 | 900 | ||||||
10,259 | ||||||||
Supermarkets & Pharmacies – 1.0% |
| |||||||
New Albertsons, Inc., | 165 | 134 | ||||||
7.45%, 8/1/29 | 2,050 | 1,866 | ||||||
Rite Aid Corp., | 525 | 572 | ||||||
6.75%, 6/15/21 | 3,310 | 3,385 | ||||||
5,957 | ||||||||
Travel & Lodging – 0.1% |
| |||||||
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp., | 705 | 726 | ||||||
Utilities – 0.2% |
| |||||||
IPALCO Enterprises, Inc., | 265 | 279 | ||||||
NGL Energy Partners L.P./NGL Energy Finance Corp., | 320 | 314 | ||||||
RJS Power Holdings LLC, | 790 | 782 | ||||||
1,375 | ||||||||
Wireless Telecommunications Services – 2.3% |
| |||||||
Hughes Satellite Systems Corp., | 625 | 664 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 69.8% – continued | ||||||||
Wireless Telecommunications Services – 2.3% – continued |
| |||||||
Sprint Capital Corp., | $4,030 | $3,849 | ||||||
8.75%, 3/15/32 | 1,254 | 1,368 | ||||||
Sprint Communications, Inc., | 245 | 283 | ||||||
7.00%, 8/15/20 | 350 | 365 | ||||||
Sprint Corp., | 199 | 207 | ||||||
7.88%, 9/15/23 (1) | 1,245 | 1,320 | ||||||
7.13%, 6/15/24 (1)(2) | 1,095 | 1,103 | ||||||
Syniverse Holdings, Inc., | 530 | 556 | ||||||
T-Mobile USA, Inc., | 1,570 | 1,609 | ||||||
6.63%, 4/28/21 | 870 | 892 | ||||||
6.13%, 1/15/22 | 320 | 322 | ||||||
6.00%, 3/1/23 | 625 | 624 | ||||||
6.50%, 1/15/24 | 315 | 319 | ||||||
6.38%, 3/1/25 | 760 | 758 | ||||||
14,239 | ||||||||
Wireline Telecommunications Services – 2.0% |
| |||||||
CenturyLink, Inc., | 80 | 83 | ||||||
6.45%, 6/15/21 | 868 | 929 | ||||||
6.75%, 12/1/23 | 320 | 343 | ||||||
Cincinnati Bell Telephone Co. LLC, | 50 | 48 | ||||||
Embarq Corp., | 390 | 422 | ||||||
Frontier Communications Corp., | 485 | 479 | ||||||
9.00%, 8/15/31 | 1,557 | 1,615 | ||||||
7.45%, 7/1/35 | 10 | 9 | ||||||
Level 3 Financing, Inc., | 989 | 1,057 | ||||||
8.13%, 7/1/19 | 530 | 564 | ||||||
8.63%, 7/15/20 | 1,055 | 1,142 | ||||||
6.13%, 1/15/21 (1) | 1,005 | 1,035 | ||||||
Qwest Capital Funding, Inc., | 260 | 289 | ||||||
6.88%, 7/15/28 | 650 | 644 | ||||||
Qwest Corp., | 1,968 | 1,964 |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 74 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
CORPORATE BONDS – 69.8% – continued | ||||||||
Wireline Telecommunications Services – 2.0% – continued |
| |||||||
Windstream Corp., | $370 | $394 | ||||||
7.50%, 6/1/22 | 1,225 | 1,288 | ||||||
12,305 | ||||||||
Total Corporate Bonds | ||||||||
(Cost $428,040) | 431,142 | |||||||
FOREIGN ISSUER BONDS – 11.1% | ||||||||
Airlines – 0.0% | ||||||||
Virgin Australia Trust, Series 2013-1C, | 261 | 272 | ||||||
Banks – 0.2% | ||||||||
Banco Santander Brasil S.A., | 2,400 | 946 | ||||||
HBOS PLC, | 200 | 222 | ||||||
1,168 | ||||||||
Biotechnology – 0.2% | ||||||||
Grifols Worldwide Operations Ltd., | 1,050 | 1,037 | ||||||
Cable & Satellite – 0.6% | ||||||||
Altice S.A., | 110 | 144 | ||||||
7.75%, 5/15/22 (1)(2) | 1,125 | 1,162 | ||||||
Numericable Group S.A., | 225 | 222 | ||||||
5.38%, 5/15/22 (1)(2)(8) | 195 | 255 | ||||||
6.00%, 5/15/22 (1)(2) | 1,475 | 1,486 | ||||||
6.25%, 5/15/24 (1)(2) | 345 | 344 | ||||||
3,613 | ||||||||
Casinos & Gaming – 0.9% | ||||||||
Great Canadian Gaming Corp., | 5,710 | 5,379 | ||||||
Chemicals – 0.1% | ||||||||
Braskem Finance Ltd., | 325 | 338 | ||||||
Perstorp Holding AB, | 510 | 525 | ||||||
863 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 11.1% – continued | ||||||||
Commercial Finance – 0.4% |
| |||||||
AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, | $785 | �� | $762 | |||||
5.00%, 10/1/21 (1)(2) | 900 | 896 | ||||||
Aircastle Ltd., | 1,000 | 987 | ||||||
2,645 | ||||||||
Construction Materials Manufacturing – 0.5% |
| |||||||
Ainsworth Lumber Co. Ltd., | 3,248 | 3,362 | ||||||
Containers & Packaging – 0.2% |
| |||||||
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc., | 200 | 192 | ||||||
Beverage Packaging Holdings Luxembourg II S.A./Beverage Packaging Holdings II Is, | 260 | 258 | ||||||
6.00%, 6/15/17 (1)(2) | 510 | 502 | ||||||
952 | ||||||||
Design, Manufacturing & Distribution – 0.2% |
| |||||||
Flextronics International Ltd., | 224 | 224 | ||||||
5.00%, 2/15/23 | 735 | 733 | ||||||
957 | ||||||||
Diversified Banks – 0.3% |
| |||||||
Royal Bank of Scotland Group PLC, | 290 | 354 | ||||||
6.13%, 12/15/22 | 1,695 | 1,794 | ||||||
2,148 | ||||||||
Exploration & Production – 0.5% |
| |||||||
Baytex Energy Corp., | 105 | 102 | ||||||
5.63%, 6/1/24 (1)(2) | 840 | 806 | ||||||
MEG Energy Corp., | 610 | 615 | ||||||
7.00%, 3/31/24 (1)(2) | 35 | 36 | ||||||
OGX Austria GmbH, | 2,420 | 97 | ||||||
8.38%, 4/1/22 (1)(11) | 1,800 | 60 | ||||||
Pacific Rubiales Energy Corp., | 1,000 | 1,015 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 75 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 11.1% – continued | ||||||||
Exploration & Production – 0.5% – continued |
| |||||||
Ultra Petroleum Corp., | $285 | $287 | ||||||
3,018 | ||||||||
Food & Beverage – 0.1% | ||||||||
BRF S.A., 7.75%, | 1,800 | 647 | ||||||
Cosan Luxembourg S.A., | 600 | 220 | ||||||
867 | ||||||||
Government Development Banks – 0.3% | ||||||||
Export-Import Bank of Korea, | 92,000 | 2,083 | ||||||
Health Care Facilities & Services – 0.0% | ||||||||
Catamaran Corp., | 310 | 298 | ||||||
Home Improvement – 0.2% | ||||||||
Masonite International Corp., | 1,010 | 1,081 | ||||||
Homebuilders – 0.1% | ||||||||
Corp. GEO S.A.B. de C.V., | 1,400 | 128 | ||||||
Urbi Desarrollos Urbanos S.A.B. de C.V., | 315 | 41 | ||||||
9.75%, 2/3/22 (1)(11) | 1,600 | 208 | ||||||
377 | ||||||||
Industrial Other – 0.2% | ||||||||
Odebrecht Finance Ltd., | 900 | 332 | ||||||
4.38%, 4/25/25 (1) | 800 | 752 | ||||||
Transfield Services Ltd., | 385 | 400 | ||||||
1,484 | ||||||||
Integrated Oils – 0.1% | ||||||||
Petrobras Global Finance B.V., | 680 | 712 | ||||||
Machinery Manufacturing – 0.0% | ||||||||
Emeco Pty Ltd., | 200 | 199 | ||||||
Metals & Mining – 1.0% | ||||||||
ArcelorMittal, | 2,671 | 2,788 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 11.1% – continued | ||||||||
Metals & Mining – 1.0% – continued |
| |||||||
7.50%, 10/15/39 | $1,060 | $1,092 | ||||||
7.25%, 3/1/41 | 1,530 | 1,534 | ||||||
First Quantum Minerals Ltd., | 195 | 197 | ||||||
7.25%, 5/15/22 (1)(2) | 300 | 307 | ||||||
5,918 | ||||||||
Oil & Gas Services & Equipment – 0.2% | ||||||||
Paragon Offshore PLC, | 380 | 321 | ||||||
7.25%, 8/15/24 (1)(2) | 950 | 803 | ||||||
1,124 | ||||||||
Pharmaceuticals – 0.0% | ||||||||
Valeant Pharmaceuticals International, Inc., | 155 | 154 | ||||||
Pipeline – 0.0% | ||||||||
Gibson Energy, Inc., | 100 | 106 | ||||||
Restaurants – 0.1% | ||||||||
New Red Finance, Inc., | 320 | 318 | ||||||
Sovereigns – 1.4% | ||||||||
Brazilian Government International Bond, | 2,000 | 803 | ||||||
Mexican Bonos, | 3,400 | 276 | ||||||
4.75%, 6/14/18 (3) | 24,000 | 1,777 | ||||||
8.00%, 12/7/23 (3) | 6,950 | 587 | ||||||
7.75%, 11/13/42 (3) | 40,780 | 3,334 | ||||||
Philippine Government International Bond, | 40,000 | 959 | ||||||
Portugal Government International Bond, | 660 | 684 | ||||||
8,420 | ||||||||
Supranationals – 0.5% | ||||||||
International Bank for Reconstruction & Development, | 516,000 | 872 | ||||||
International Finance Corp., | 995 | 411 | ||||||
7.80%, 6/3/19 (14) | 106,560 | 1,827 | ||||||
3,110 |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 76 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
FOREIGN ISSUER BONDS – 11.1% – continued | ||||||||
Utilities – 0.4% |
| |||||||
Enel S.p.A., | $1,908 | $2,211 | ||||||
Wireless Telecommunications Services – 1.3% |
| |||||||
America Movil S.A.B. de C.V., | 4,000 | 290 | ||||||
8.46%, 12/18/36 (3) | 11,400 | 830 | ||||||
Inmarsat Finance PLC, | 735 | 718 | ||||||
Intelsat Jackson Holdings S.A., | 1,620 | 1,547 | ||||||
Intelsat Luxembourg S.A., | 1,045 | 1,065 | ||||||
8.13%, 6/1/23 | 440 | 459 | ||||||
Telecom Italia S.p.A., | 1,520 | 1,490 | ||||||
Wind Acquisition Finance S.A., | 210 | 265 | ||||||
4.75%, 7/15/20 (1)(2) | 1,265 | 1,216 | ||||||
7,880 | ||||||||
Wireline Telecommunications Services – 1.1% |
| |||||||
Axtel S.A.B. de C.V., | 722 | 715 | ||||||
Bakrie Telecom Pte Ltd., | 1,550 | 141 | ||||||
Oi S.A., | 1,690 | 1,580 | ||||||
Telecom Italia Capital S.A., | 100 | 100 | ||||||
6.00%, 9/30/34 | 615 | 602 | ||||||
Telefonica Emisiones S.A.U., | 975 | 1,235 | ||||||
UPCB Finance III Ltd., | 710 | 742 | ||||||
Virgin Media Finance PLC, | 920 | 921 | ||||||
Virgin Media Secured Finance PLC, | 520 | 524 | ||||||
6,560 | ||||||||
Total Foreign Issuer Bonds | ||||||||
(Cost $77,269) | 68,316 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
TERM LOANS – 4.2% (15) | ||||||||
Advertising & Marketing – 0.0% |
| |||||||
Advantage Sales and Marketing Inc. Term Loan, | $110 | $108 | ||||||
Advantage Sales and Marketing Inc., Delayed Draw Term Loan, | 33 | |||||||
Advantage Sales and Marketing Inc., Initial Term Loan, | 107 | 105 | ||||||
216 | ||||||||
Casinos & Gaming – 0.5% |
| |||||||
Graton Economic Development Authority, Closing Date Term Loan B, | 532 | 546 | ||||||
Scientific Games International Inc. – Term B-2 Loan, | 1,855 | 1,814 | ||||||
Station Casinos LLC, B Term Loan, | 720 | 721 | ||||||
3,081 | ||||||||
Chemicals – 0.1% |
| |||||||
Axalta Coating Systems US Holdings, Inc., | 467 | 457 | ||||||
Coal Operations – 0.0% |
| |||||||
Peabody Energy Corporation, Term Loan, | 1 | 1 | ||||||
Commercial Finance – 0.1% |
| |||||||
International Lease Finance Corp., Loan, | 450 | 444 | ||||||
Consumer Services – 0.2% |
| |||||||
Aramark Corporation – U.S. Term F Loan, | 1,247 | 1,223 | ||||||
Entertainment Resources – 0.2% |
| |||||||
Mohegan Tribal Gaming Authority, Term B Loan, | 1,156 | 1,140 | ||||||
Financial Services – 0.1% |
| |||||||
Nuveen Investments, Inc. – Tranche B First-Lien Term Loan, | 435 | 433 | ||||||
Food & Beverage – 0.9% |
| |||||||
H. J. Heinz Company – Term B-2 Loan, | 1,052 | 1,038 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 77 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
TERM LOANS – 4.2% (15) – continued | ||||||||
Food & Beverage – 0.9% – continued |
| |||||||
Milk Specialties Co., Initial Term Loan, | $4,867 | $4,831 | ||||||
5,869 | ||||||||
Health Care Facilities & Services – 0.2% |
| |||||||
United Surgical Partners International, Inc., New Tranche B Term Loan, | 968 | 965 | ||||||
Home Improvement – 0.0% |
| |||||||
Servicemaster Company, LLC, The – Initial Term Loan, | 310 | 305 | ||||||
Managed Care – 0.1% |
| |||||||
MPH Acquisition Holdings LLC, Initial Term Loan, | 666 | 649 | ||||||
Media Non-Cable – 0.3% |
| |||||||
Van Wagner Communications, LLC, Replacement Term Loan, | 1,930 | 1,926 | ||||||
Oil & Gas Services & Equipment – 0.1% |
| |||||||
Pinnacle Holdco S.a.r.l., Initial Term Loan (Second Lien), | 422 | 420 | ||||||
Publishing & Broadcasting – 0.3% |
| |||||||
Clear Channel Communications, Inc. Tranche D Term Loan, | 271 | 258 | ||||||
Clear Channel Communications, Inc., Tranche B Term Loan, | 493 | 488 | ||||||
Clear Channel Communications, Inc., Tranche E Term Loan, | 723 | 705 | ||||||
Univision Communications, Inc., 2013 Incremental Term Loan, | 441 | 432 | ||||||
1,883 | ||||||||
Real Estate – 0.1% |
| |||||||
Realogy Group LLC (fka Realogy Corporation) Initial Term B Loan 2014, | 543 | 534 | ||||||
Retail – Consumer Discretionary – 0.0% |
| |||||||
Neff Rental LLC, Closing Date Loan, | 85 | 85 |
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
TERM LOANS – 4.2% (15) – continued | ||||||||
Retail Staples – 0.0% |
| |||||||
Albertson’s LLC, Term B-4 Loan, | $332 | $326 | ||||||
Semiconductors – 0.3% |
| |||||||
Avago Technologies Holdings Luxembourg S.A R.L., Term Loan, | 1,476 | 1,462 | ||||||
Freescale Semiconductor, Inc., Tranche B-4 Term Loan, | 56 | 55 | ||||||
4.25%, 2/28/20 | 447 | 439 | ||||||
1,956 | ||||||||
Software & Services – 0.1% |
| |||||||
Ellucian, Inc., Term B-1 Loan, | 355 | 350 | ||||||
Transportation & Logistics – 0.2% |
| |||||||
Navistar, Inc., Tranche B, Term Loan, | 1,269 | 1,275 | ||||||
OSG Bulk Ships, Inc., Initial Term Loan, | 115 | 115 | ||||||
1,390 | ||||||||
Wireless Telecommunications Services – 0.1% |
| |||||||
Intelsat Jackson Holdings S.A., Tranche B-2 Term Loan, | 825 | 811 | ||||||
Wireline Telecommunications Services – 0.3% |
| |||||||
Integra Telecom Holdings, Inc., Term B Loan, | 494 | 490 | ||||||
Level 3 Financing, Inc., Tranche B-III 2019 Term Loan, | 825 | 810 | ||||||
Level 3 Financing, Inc.Tranche B 2020 Term Loan, | 357 | 351 | ||||||
1,651 | ||||||||
Total Term Loans | ||||||||
(Cost $26,294) | 26,115 | |||||||
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 0.3% | ||||||||
Automotive – 0.3% |
| |||||||
General Motors Co. | 48,824 | $1,560 |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 78 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
COMMON STOCKS – 0.3% – continued | ||||||||
Industrial Services – 0.0% |
| |||||||
United Rentals, Inc.* | 2,047 | $227 | ||||||
Total Common Stocks | ||||||||
(Cost $1,655) | 1,787 | |||||||
PREFERRED STOCKS – 0.7% | ||||||||
Consumer Finance – 0.6% |
| |||||||
Ally Financial, Inc., (1)(10) | 3,605 | 3,609 | ||||||
Homebuilders – 0.0% |
| |||||||
Hovnanian Enterprises, Inc.,* | 10,100 | 161 | ||||||
Real Estate – 0.1% |
| |||||||
iStar Financial, Inc., 7.65% | 850 | 20 | ||||||
iStar Financial, Inc., 7.80% | 11,500 | 283 | ||||||
iStar Financial, Inc., 7.88% | 19,875 | 491 | ||||||
794 | ||||||||
Total Preferred Stocks | ||||||||
(Cost $3,905) | 4,564 | |||||||
CONVERTIBLE PREFERRED STOCKS – 0.7% | ||||||||
Diversified Banks – 0.0% |
| |||||||
Bank of America Corp., 7.25% | 196 | 225 | ||||||
Food & Beverage – 0.2% |
| |||||||
Tyson Foods, Inc.* | 18,174 | 915 | ||||||
Metals & Mining – 0.0% |
| |||||||
ArcelorMittal, 6.00% | 9,786 | 208 | ||||||
Real Estate – 0.3% |
| |||||||
Crown Castle International Corp., 4.5% | 9,063 | 953 | ||||||
Weyerhaeuser Co., 6.38% | 13,751 | 743 | ||||||
1,696 | ||||||||
Utilities – 0.2% |
| |||||||
Dominion Resources, Inc., 6.13% | 612 | 35 | ||||||
Dominion Resources, Inc., 6.38% | 11,950 | 596 | ||||||
NextEra Energy, Inc., 5.89% | 5,209 | 312 | ||||||
943 | ||||||||
Total Convertible Preferred Stocks | ||||||||
(Cost $3,845) | 3,987 | |||||||
OTHER – 0.0% (17) | ||||||||
Escrow GCB Dynergy Holdings | 1,810,000 | – | ||||||
Total Other | ||||||||
(Cost $–) | – |
NUMBER OF SHARES | VALUE (000s) | |||||||
INVESTMENT COMPANIES – 7.0% | ||||||||
Northern Institutional Funds – Diversified Assets Portfolio, | 43,268,284 | $43,268 | ||||||
Total Investment Companies | ||||||||
(Cost $43,268) | 43,268 | |||||||
PRINCIPAL AMOUNT (000s) | VALUE (000s) | |||||||
SHORT-TERM INVESTMENTS – 0.1% | ||||||||
U.S. Treasury Bill, | $545 | $545 | ||||||
Total Short-Term Investments | ||||||||
(Cost $545) | 545 | |||||||
Total Investments – 99.5% | ||||||||
(Cost $612,618) | 614,220 | |||||||
Other Assets less Liabilities – 0.5% | 3,217 | |||||||
NET ASSETS – 100.0% | $617,437 |
(1) | 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. The value of these securities is determined by valuations supplied by a pricing service or brokers, or if not available in accordance with procedures established by the Trustees of Northern Multi-Manager Funds. |
(2) | Restricted security that has been deemed illiquid. At September 30, 2014, the value of these restricted illiquid securities amounted to approximately $68,870,000 or 11.2% of net assets. Additional information on each restricted illiquid security is as follows: |
SECURITY | ACQUISITION AND ENFORCEABLE DATE | ACQUISITION (000s) | ||||
Activision Blizzard, Inc., 5.63%, 9/15/21 | 9/12/13-2/20/14 | $834 | ||||
AECOM Technology Corp., 5.88%, 10/15/24 | 9/17/14 | 245 | ||||
AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, 5.00%, 10/1/21 | 9/24/14 | 900 | ||||
Ainsworth Lumber Co. Ltd., 7.50%, 12/15/17 | 11/14/12-11/15/12 | 3,273 | ||||
Altice S.A., 7.25%, 5/15/22 | 4/23/14 | 152 | ||||
Altice S.A., 7.75%, 5/15/22 | 4/23/14-7/7/14 | 1,169 | ||||
Amsurg Corp., 5.63%, 7/15/22 | 7/1/14 | 1,155 |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 79 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued
SECURITY | ACQUISITION AND ENFORCEABLE DATE | ACQUISITION COST (000s) | ||||
Ancestry.com, Inc., 9.63%, 10/15/18 | 8/14/14 | $906 | ||||
Anna Merger Sub, Inc., 7.75%, 10/1/22 | 9/15/14 | 465 | ||||
Antero Resources Corp., 5.13%, 12/1/22 | 4/23/14 | 1,045 | ||||
APX Group, Inc., 8.75%, 12/1/20 | 6/26/14 | 235 | ||||
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc., 6.00%, 6/30/21 | 6/20/14 | 200 | ||||
Atrium Windows & Doors, Inc., 7.75%, 5/1/19 | 4/11/14-9/17/14 | 1,022 | ||||
Axtel S.A.B. de C.V., 8.00%, 1/31/20 | 9/25/09-10/21/11 | 943 | ||||
Bakrie Telecom Pte Ltd., 11.50%, 5/7/15 | 4/30/10-9/13/11 | 1,409 | ||||
Baytex Energy Corp., 5.13%, 6/1/21 | 5/29/14 | 105 | ||||
Baytex Energy Corp., 5.63%, 6/1/24 | 5/29/14-7/8/14 | 845 | ||||
Beverage Packaging Holdings Luxembourg II S.A./Beverage Packaging Holdings II Is, 5.63%, 12/15/16 | 11/12/13 | 260 | ||||
Beverage Packaging Holdings Luxembourg II S.A./Beverage Packaging Holdings II Is, 6.00%, 6/15/17 | 12/4/13 | 513 | ||||
BioScrip, Inc., 8.88%, 2/15/21 | 2/6/14-2/7/14 | 387 | ||||
BMC Software Finance, Inc., 8.13%, 7/15/21 | 1/30/14-2/6/14 | 562 | ||||
Building Materials Holding Corp., 9.00%, 9/15/18 | 7/22/14-9/23/14 | 509 | ||||
California Resources Corp., 5.00%, 1/15/20 | 9/11/14 | 245 | ||||
California Resources Corp., 5.50%, 9/15/21 | 9/11/14 | 1,045 | ||||
California Resources Corp., 6.00%, 11/15/24 | 9/11/14 | 1,085 | ||||
CHS/Community Health Systems, Inc., 5.13%, 8/1/21 | 1/15/14 | 415 | ||||
CHS/Community Health Systems, Inc., 6.88%, 2/1/22 | 1/15/14-8/19/14 | 2,781 | ||||
Corp. GEO S.A.B. de C.V., 8.88%, 3/27/22 | 3/21/12-4/17/13 | 1,164 | ||||
Emeco Pty Ltd., 9.88%, 3/15/19 | 3/7/14 | 197 |
SECURITY | ACQUISITION AND ENFORCEABLE DATE | ACQUISITION COST (000s) | ||||
Emergent Biosolutions, Inc., 2.88%, 1/15/21 | 1/23/14-9/29/14 | $745 | ||||
Endo Finance LLC & Endo Finco, Inc., 7.00%, 7/15/19 | 7/8/11-11/30/11 | 536 | ||||
Endo Finance LLC & Endo Finco, Inc., 7.25%, 1/15/22 | 7/23/14-7/24/14 | 261 | ||||
Enel S.p.A., 8.75%, 9/24/73 | 9/17/13-3/11/14 | 2,050 | ||||
EnPro Industries, Inc., 5.88%, 9/15/22 | 9/11/14 | 1,225 | ||||
First Quantum Minerals Ltd., 7.00%, 2/15/21 | 6/16/14 | 201 | ||||
First Quantum Minerals Ltd., 7.25%, 5/15/22 | 5/8/14 | 300 | ||||
GameStop Corp., 5.50%, 10/1/19 | 9/22/14-9/23/14 | 340 | ||||
Gannett Co., Inc., 4.88%, 9/15/21 | 9/3/14 | 94 | ||||
Gannett Co., Inc., 5.50%, 9/15/24 | 9/3/14 | 144 | ||||
Gibson Energy, Inc., 6.75%, 7/15/21 | 6/9/14 | 108 | ||||
Grifols Worldwide Operations Ltd., 5.25%, 4/1/22 | 5/13/14 | 1,087 | ||||
HBOS PLC, 6.00%, 11/1/33 | 11/10/11 | 130 | ||||
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp., 5.63%, 10/15/21 | 5/14/14-7/30/14 | 747 | ||||
Hockey Merger Sub 2, Inc., 7.88%, 10/1/21 | 5/13/14 | 1,088 | ||||
Jarden Corp., 1.13%, 3/15/34 | 4/8/14-7/22/14 | 421 | ||||
Jefferies Finance LLC/JFIN Co-Issuer Corp., 6.88%, 4/15/22 | 5/13/14-7/11/14 | 760 | ||||
Jones Energy Holdings LLC/Jones Energy Finance Corp., 6.75%, 4/1/22 | 3/27/14 | 230 | ||||
Kratos Defense & Security Solutions, Inc., 7.00%, 5/15/19 | 5/9/14 | 450 | ||||
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., 5.88%, 8/1/21 | 7/29/14 | 1,850 | ||||
Masonite International Corp., 8.25%, 4/15/21 | 1/15/14 | 1,098 |
See Notes to the Financial Statements.
MULTI-MANAGER FUNDS | 80 | NORTHERN FUNDS SEMIANNUAL REPORT |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED)
SECURITY | ACQUISITION AND ENFORCEABLE DATE | ACQUISITION COST (000s) | ||||
MEG Energy Corp., 6.38%, 1/30/23 | 8/7/13-9/10/13 | $609 | ||||
MEG Energy Corp., 7.00%, 3/31/24 | 11/1/13 | 35 | ||||
Memorial Production Partners L.P./Memorial Production Finance Corp., 6.88%, 8/1/22 | 7/14/14 | 2,324 | ||||
MercadoLibre, Inc., 2.25%, 7/1/19 | 6/25/14-7/16/14 | 540 | ||||
MPH Acquisition Holdings LLC, 6.63%, 4/1/22 | 3/18/14 | 555 | ||||
NGL Energy Partners L.P./NGL Energy Finance Corp., 5.13%, 7/15/19 | 6/24/14 | 320 | ||||
Nielsen Finance LLC/Nielsen Finance Co., 5.00%, 4/15/22 | 3/28/14-6/23/14 | 889 | ||||
NRG Energy, Inc., 6.25%, 7/15/22 | 1/10/14 | 1,180 | ||||
Numericable Group S.A., 4.88%, 5/15/19 | 4/23/14 | 225 | ||||
Numericable Group S.A., 5.38%, 5/15/22 | 4/23/14 | 269 | ||||
Numericable Group S.A., 6.00%, 5/15/22 | 4/23/14-4/25/14 | 1,478 | ||||
Numericable Group S.A., 6.25%, 5/15/24 | 4/23/14 | 345 | ||||
Palo Alto Networks, Inc., 0.00%, 7/1/19 | 6/25/14-7/10/14 | 549 | ||||
Paragon Offshore PLC, 6.75%, 7/15/22 | 7/11/14-8/1/14 | 378 | ||||
Paragon Offshore PLC, 7.25%, 8/15/24 | 7/11/14-7/31/14 | 945 | ||||
Parker Drilling Co., 6.75%, 7/15/22 | 1/7/14 | 40 | ||||
Perstorp Holding AB, 11.00%, 8/15/17 | 7/14/14-8/6/14 | 547 | ||||
Pioneer Energy Services Corp., 6.13%, 3/15/22 | 3/10/14-3/11/14 | 206 | ||||
PQ Corp., 8.75%, 5/1/18 | 11/1/12-8/19/14 | 1,702 | ||||
Rex Energy Corp., 6.25%, 8/1/22 | 7/14/14-9/4/14 | 2,923 | ||||
Rice Energy, Inc., 6.25%, 5/1/22 | 5/13/14-9/29/14 | 626 | ||||
RJS Power Holdings LLC, 5.13%, 7/15/19 | 7/2/14 | 790 | ||||
Rose Rock Midstream L.P./Rose Rock Finance Corp., 5.63%, 7/15/22 | 6/27/14 | 450 | ||||
RSP Permian, Inc., 6.63%, 10/1/22 | 9/23/14 | 1,503 |
SECURITY | ACQUISITION AND ENFORCEABLE DATE | ACQUISITION COST (000s) | ||||
Sanchez Energy Corp., 6.13%, 1/15/23 | 6/13/14 | $285 | ||||
Signode Industrial Group Lux S.A./Signode Industrial Group US, Inc., 6.38%, 5/1/22 | 4/7/14 | 485 | ||||
Sophia Holding Finance L.P./Sophia Holding Finance, Inc., 9.63%, 12/1/18 | 11/14/13-1/10/14 | 798 | ||||
Springleaf Funding Trust, Series 2014-AA, Class C, 4.45%, 12/15/22 | 3/19/14 | 575 | ||||
Sprint Corp., 7.13%, 6/15/24 | 12/9/13 | 1,095 | ||||
Telecom Italia S.p.A., 5.30%, 5/30/24 | 6/26/14-8/7/14 | 1,503 | ||||
Tenet Healthcare Corp., 5.00%, 3/1/19 | 3/5/14 | 245 | ||||
Transfield Services Ltd., 8.38%, 5/15/20 | 5/7/14-7/31/14 | 390 | ||||
Ultra Petroleum Corp., 5.75%, 12/15/18 | 12/6/13 | 285 | ||||
Universal Health Services, Inc., 3.75%, 8/1/19 | 7/29/14 | 445 | ||||
Universal Health Services, Inc., 4.75%, 8/1/22 | 7/29/14 | 855 | ||||
UPCB Finance III Ltd., 6.63%, 7/1/20 | 2/8/13 | 756 | ||||
Valeant Pharmaceuticals International, Inc., 5.63%, 12/1/21 | 6/18/14-8/4/14 | 157 | ||||
Virgin Media Finance PLC, 6.00%, 10/15/24 | 9/23/14 | 920 | ||||
Walter Investment Management Corp., 7.88%, 12/15/21 | 12/12/13-5/8/14 | 1,287 | ||||
Wave Holdco LLC/Wave Holdco Corp., 8.25%, 7/15/19 | 6/18/14 | 150 | ||||
Weyerhaeuser Real Estate Co., 4.38%, 6/15/19 | 6/4/14 | 1,058 | ||||
Wind Acquisition Finance S.A., 4.20%, 7/15/20 | 6/24/14 | 286 | ||||
Wind Acquisition Finance S.A., 4.75%, 7/15/20 | 6/24/14 | 1,020 | ||||
WMG Acquisition Corp., 6.75%, 4/15/22 | 3/26/14-3/27/14 | 1,564 |
(3) | Principal amount is denoted in Mexican Peso. |
(4) | Security is payment in-kind bond. |
(5) | When-Issued Security. |
(6) | Principal amount is denoted in Australian Dollar. |
See Notes to the Financial Statements.
NORTHERN FUNDS SEMIANNUAL REPORT | 81 | MULTI-MANAGER FUNDS |
Table of Contents
SCHEDULE OF INVESTMENTS
MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued
(7) | Principal amount is denoted in Brazilian Real. |
(8) | Principal amount is denoted in Euro. |
(9) | Principal amount is denoted in Canadian Dollar. |
(10) | Perpetual maturity security. |
(11) | Issuer has defaulted on terms of debt obligation. |
(12) | Principal amount is denoted in Philippine Peso. |
(13) | Principal amount is denoted in Chilean Peso. |
(14) | Principal amount is denoted in Indian Rupee. |
(15) | Variable rate security. Rate as of September 30, 2014 is disclosed. |
(16) | Position is unsettled. Contract rate was not determined at September 30, 2014 and does not take effect until settlement date. |
(17) | Security listed as “escrow” is considered to be worthless. |
(18) | Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the Northern Institutional Funds. |
(19) | At March 31, 2014, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $29,369,000 with net purchases of approximately $13,899,000 during the six months ended September 30, 2014. |
(20) | A portion of this security has been pledged as collateral to cover margin requirements for open futures contracts. |
* | Non-Income Producing Security |
Percentages shown are based on Net Assets.
At September 30, 2014, the Fund had outstanding forward foreign currency exchange contracts as follows:
COUNTERPARTY | CONTRACTS TO DELIVER CURRENCY | AMOUNT (LOCAL CURRENCY) (000s) | IN EXCHANGE CURRENCY | AMOUNT (LOCAL CURRENCY) (000s) | SETTLEMENT DATE | UNREALIZED (LOSSES) | ||||||||||||||
Barclays | Euro | 1,465 | United States Dollar | 1,968 | 10/31/14 | $118 | ||||||||||||||
Barclays | United States Dollar | 214 | Euro | 160 | 10/31/14 | (12) | ||||||||||||||
Barclays | United States Dollar | 242 | Euro | 180 | 10/31/14 | (14) | ||||||||||||||
Barclays | United States Dollar | 261 | Euro | 195 | 10/31/14 | (15) | ||||||||||||||
Barclays | United States Dollar | 332 | Euro | 250 | 10/31/14 | (16) | ||||||||||||||
Total | $61 |
At September 30, 2014, the Fund had open futures contracts as follows:
TYPE | NUMBER OF CONTRACTS | NOTIONAL AMOUNT (000s) | CONTRACT POSITION | CONTRACT EXP. | UNREALIZED GAINS (LOSSES) (000s) | |||||||||||||||
U.S. Treasury Long Bond | (60) | $8,274 | Short | 12/14 | $71 |
At September 30, 2014, the credit quality distribution for the Fund as a percentage of investments including cash was:
QUALITY DISTRIBUTION* | % OF LONG TERM INVESTMENTS | |||
AAA | 0.5% | |||
AA | 0.1 | |||
A | 1.9 | |||
BBB | 2.0 | |||
BB | 22.6 | |||
B | 40.1 | |||
CCC or Below | 23.2 | |||
Non-Rated | 2.6 | |||
Cash Equivalents | 7.0 | |||
Total | 100.0% |
*Credit quality ratings are compiled from two external rating agencies: Moody’s and Standard & Poor’s. We report the lowest rating of the two in the event there are any differences between them. If neither of these rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). Government securities consist of obligations issued or guaranteed by the U.S. Treasury. The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.
At September 30, 2014, the Fund’s investments were denominated in the following currencies:
CONCENTRATION BY CURRENCY | % OF LONG-TERM INVESTMENTS | |||
United States Dollar | 96.9% | |||
All other currencies less than 5% | 3.1 | |||
Total | 100.0% |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Asset-Backed Securities | $– | $14,158 | (1) | $– | $14,158 | |||||||||||
Convertible Bonds | ||||||||||||||||
Wireline Telecommuni- | – | 827 | 17 | 844 | ||||||||||||
All Other Industries | – | 19,494 | (1) | – | 19,494 |
See Notes to the Financial Statements.
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SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED)
INVESTMENTS | LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | ||||||||||||
Corporate Bonds | ||||||||||||||||
Financial Services | $– | $4,635 | $1,253 | $5,888 | ||||||||||||
All Other Industries | – | 425,254 | (1) | – | 425,254 | |||||||||||
Foreign Issuer Bonds | ||||||||||||||||
Sovereigns | – | 6,658 | 1,762 | 8,420 | ||||||||||||
Supranationals | – | 1,283 | 1,827 | 3,110 | ||||||||||||
All Other Industries | – | 56,786 | (1) | – | 56,786 | |||||||||||
Term Loans | – | 26,115 | (1) | – | 26,115 | |||||||||||
Common Stocks | 1,787 | (1) | – | – | 1,787 | |||||||||||
Preferred Stocks | ||||||||||||||||
Consumer Finance | – | 3,609 | – | 3,609 | ||||||||||||
Homebuilders | 161 | – | – | 161 | ||||||||||||
Real Estate | 511 | 283 | – | 794 | ||||||||||||
Convertible Preferred Stocks | ||||||||||||||||
Metals & Mining | – | 208 | – | 208 | ||||||||||||
All Other Industries | 3,779 | (1) | – | – | 3,779 | |||||||||||
Investment Companies | 43,268 | – | – | 43,268 | ||||||||||||
Short-Term Investments | – | 545 | – | 545 | ||||||||||||
Total Investments | $49,506 | $559,855 | $4,859 | $614,220 |
OTHER FINANCIAL INSTRUMENTS |
| |||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $71 | $– | $– | $71 | ||||||||||||
Forward Foreign Currency Exchange Contracts | – | 118 | – | 118 | ||||||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | – | (57 | ) | – | (57 | ) | ||||||||||
Total Other Financial Instruments | $71 | $61 | $– | $132 |
(1) | Classifications as defined in the Schedule of Investments. |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, the Fund had transfers from Level 1 to Level 2 as disclosed below:
Transfers from Level 1 to Level 2 | ||||||
Value (000s) | Reason | |||||
Preferred Stocks | ||||||
Real Estate | $283 | Valuations at bid price |
The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:
BALANCE AS OF 3/31/14 (000s) | ACCRUED DISCOUNTS (PREMIUMS) (000s) | REALIZED GAINS (LOSSES) (000s) | CHANGE IN UNREALIZED | PURCHASES (000s) | SALES (000S) | TRANSFERS INTO LEVEL 3 (000s) (1) | TRANSFERS OUT OF LEVEL 3 (000s) | BALANCE AS OF 9/30/14 (000s) | CHANGE IN UNREALIZED (000s) | |||||||||||||||||||||||||||||||
Convertible |
| |||||||||||||||||||||||||||||||||||||||
Bonds |
| |||||||||||||||||||||||||||||||||||||||
Wireline Telecom Services | $ | 125 | $ | (2 | ) | $ | 18 | $ | (23 | ) | – | $ | (101 | ) | – | – | $ | 17 | $ | (23 | ) | |||||||||||||||||||
Corporate | ||||||||||||||||||||||||||||||||||||||||
Bonds | ||||||||||||||||||||||||||||||||||||||||
Financial Services | – | – | – | – | – | – | 1,253 | – | 1,253 | (76 | ) | |||||||||||||||||||||||||||||
Foreign Issuer | ||||||||||||||||||||||||||||||||||||||||
Bonds | ||||||||||||||||||||||||||||||||||||||||
Sovereigns | – | – | – | – |
| – |
| | – | | 1,762 | – | 1,762 | (66 | ) | |||||||||||||||||||||||||
Suprana-tionals | – | – | – | – | – | – | 1,827 | – | 1,827 | 39 | ||||||||||||||||||||||||||||||
Total | $ | 125 | $ | (2 | ) | $ | 18 | $ | (23 | ) | $ | – | $ | (101 | ) | $ | 4,842 | $ | – | $ | 4,859 | $ | (126 | ) |
(1) | The Transfers Into Level 3, noted above, were due to the Fund receiving an evaluated price from a third party provider. |
The Fund valued the securities included in the balance as of 9/30/14 above using an evaluated price from a third party provider.
See Notes to the Financial Statements.
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MULTI-MANAGER FUNDS
NOTES TO THE FINANCIAL STATEMENTS
1. ORGANIZATION
Northern Funds (the “Trust”) is a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended, (the “1940 Act”) as an open-end management investment company. The Trust offers 48 funds as of September 30, 2014, each with its own investment objective (e.g., long-term capital appreciation, total return or income consistent with preservation of capital). The Multi-Manager Emerging Markets Equity, Multi-Manager Global Listed Infrastructure, Multi-Manager Global Real Estate, Multi-Manager International Equity, Multi-Manager Large Cap, Multi-Manager Mid Cap, Multi-Manager Small Cap, Multi-Manager Emerging Markets Debt Opportunity and Multi-Manager High Yield Opportunity Funds (each a “Fund” and collectively, the “Funds”) are separate, investment portfolios of the Trust, all of which are diversified portfolios, except for the Multi-Manager Global Listed Infrastructure and Multi-Manager Emerging Markets Debt Opportunity 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 is presented herein.
Northern Trust Investments, Inc. (“NTI”) is a subsidiary of The Northern Trust Company (“Northern Trust”). NTI serves as the investment adviser for each of the Funds. Effective January 1, 2014, the Northern Trust Company of Connecticut (“NTCC”), a subsidiary of Northern Trust Corporation, was reorganized into NTI. Prior to January 1, 2014, NTCC and NTI served jointly as the investment advisers for each of the Funds. Northern Trust serves as the custodian and transfer agent for the Trust. NTI serves as the Trust’s administrator. Northern Funds Distributors, LLC is the Trust’s distributor.
2. SIGNIFICANT ACCOUNTING POLICIES
The Trust, which is an investment company within the scope of Financial Accounting Standards Board (“FASB”) Accounting Standards Update 2013-08, follows accounting and reporting guidance under FASB Accounting Standards Codification Topic 946, “Financial Services-Investment Companies”.
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“U.S.”) or “U.S. GAAP”. The preparation of financial statements in conformity with U.S. 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 may differ from those estimates.
The net asset value (“NAV”) of each Fund is determined daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), generally 3.00 P.M. Central Time, on each day the NYSE is open for trading.
A) VALUATION OF SECURITIES AND DERIVATIVES CONTRACTS Securities are valued at their fair value. Securities traded on U.S. securities exchanges or in the NASDAQ National Market System are principally valued at the regular trading session closing price (generally, 3:00 P.M. Central Time) on the exchange or market in which such securities are principally traded. If any such security is not traded on a valuation date, it is valued at the most recent quoted bid price. Over-the-counter securities not reported in the NASDAQ National Market System are also generally valued at the most recent quoted bid price. Fixed income securities and term loans, however, may be valued on the basis of evaluated prices provided by independent pricing services when such prices are believed to reflect the fair value of such securities or broker-provided prices. Such prices may be determined by taking into account other similar securities’ prices, yields, maturities, call features, ratings, prepayment speeds, credit risks, cash flows, institutional size trading in similar groups of securities and developments related to specific securities.
The values of securities of foreign issuers are generally based upon market quotations which, depending upon local convention or regulation, may be the last sale price, the last bid price or the mean between the last bid and asked price as of, in each case, the close of the appropriate exchange or other designated time. Foreign fixed income securities, however, may, like domestic fixed income securities, be valued based on evaluated prices provided by independent pricing services when such prices are believed to reflect the fair value of such securities.
Shares of open-end investment companies, other than ETFs, are valued at their NAV. Spot and forward foreign currency exchange contracts are generally valued using an independent pricing service. Exchange-traded financial futures and options are valued at the settlement price as established by the exchange on which they are traded. Over-the-counter options are valued at broker-provided bid prices, as are swaps, caps, collars and floors. The foregoing prices may be obtained from one or more independent pricing services or, as needed or applicable, independent broker-dealers. Short-term investments with a maturity of 60 days or less are valued at their amortized cost, which NTI, as authorized by the Board of Trustees (the “Board”), has determined approximates fair value.
Any securities for which market quotations are not readily available or are believed to be incorrect are valued at fair value as determined in good faith by NTI under the supervision of the Board. The Trust, in its discretion, may make adjustments to the prices of securities held by a Fund if an event occurs after the
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MULTI-MANAGER FUNDS
SEPTEMBER 30, 2014 (UNAUDITED) |
publication of fair values normally used by a Fund, but before the time as of which the Fund calculates its NAV, depending on the nature and significance of the event, consistent with applicable regulatory guidance and U.S. GAAP. This may occur particularly with respect to certain foreign securities held by a Fund, in which case the Trust may use adjustment factors obtained from an independent evaluation service that are intended to reflect more accurately the fair value of those securities as of the time the Fund’s NAV is calculated.
Northern Trust’s Pricing Unit (the “NT Pricing Unit”) is responsible for supplying a value for each portfolio security used in the NAV computations. Securities or other assets for which market quotations are not readily available or for which market quotations do not represent the value at the time of pricing are fair valued in accordance with policies and procedures established by, and subject to oversight of the Funds’ Board. NTI has established a pricing and valuation committee (the “Asset Management PVC”) whose membership includes representatives of NTI, as well as independent control personnel from Northern Trust’s Legal and Fund Administration and NTI’s Compliance and Risk Management groups. The Asset Management PVC is responsible for the fair valuation of portfolio securities and the monitoring of the fair valuation process, subject to the Board’s oversight.
The Asset Management PVC is responsible for making the determination of the fair value of the security. In making its determination, the Asset Management PVC considers factors that it deems appropriate to the determination of the fair value of the security. Such factors include, but are not limited to, the type of security; the current financial position of the company; the cost of the investment; information as to any transaction or offers with respect to the security; market value of a similar freely-traded security; and news events. NTI will continue to monitor markets and the issuer’s circumstances that affect the security’s valuation to determine the continued appropriateness of the security’s fair valuation. The Asset Management PVC will review if the markets and issuer’s circumstances relevant to the valuation of the fair valued security change materially.
For each level 3 security, if any, that has been fair valued pursuant to the policies adopted by the Board, the fair value price is compared against the last available and next available market quotations. The results of such back testing and fair valued securities are reported quarterly to the Valuation Committee of the Board.
The use of fair valuation involves the risk that the values used by the Funds to price their investments may be higher or lower than the values used by other unaffiliated investment companies and investors to price the same investments.
B) FUTURES CONTRACTS Certain Funds invest in long or short futures contracts for hedging purposes, to increase total return (i.e., for speculative purposes) or to maintain liquidity. When used as a hedge, a Fund will sell a futures contract in order to offset a decrease in the fair value of its portfolio securities that might otherwise result from a market decline. A Fund will do so either to hedge the value of its portfolio securities as a whole, or to protect against declines occurring prior to sales of securities in the value of the securities to be sold. Conversely, a Fund will purchase a futures contract as a hedge in anticipation of purchases of securities. In addition, a Fund will utilize futures contracts in anticipation of changes in the composition of its portfolio holdings. 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 generally required to make a margin deposit with the custodian of a specified amount of liquid assets. Futures are marked to market each day with the change in value reflected in the unrealized gains or losses. Risk may arise as a result of the potential inability of the counterparties to meet the terms of their contracts. Credit risk is mitigated to the extent that the exchange on which a particular futures contract is traded assumes the risk of a counterparty defaulting on its obligations under the contract. The Statements of Operations include any realized gains or losses, on closed futures contracts, in Net realized gains (losses) on futures contracts and any unrealized gains or losses, on open futures contracts, in Net change in unrealized appreciation (depreciation) on futures contracts.
At September 30, 2014, the Multi-Manager Global Listed Infrastructure, Multi-Manager International Equity, Multi-Manager Large Cap, Multi-Manager Mid Cap and Multi-Manager Small Cap Funds had entered into exchange-traded long futures contracts. The aggregate fair value of securities pledged to cover margin requirements for open positions was approximately $1,720,000, $200,000, $955,000, $1,155,000 and $585,000, respectively. The Multi-Manager High Yield Opportunity Fund had entered into exchange-traded short futures contracts. The aggregate fair value of securities pledged to cover margin requirements for open positions was approximately $145,000. Further information on the impact of these positions on the Funds’ financial statements can be found in Note 9.
C) FOREIGN CURRENCY TRANSLATION Values of investments denominated in foreign currencies are converted into U.S. dollars using the spot rates on the NYSE, generally at 3:00 P.M. Central Time. The cost of purchases and proceeds from sales of investments, interest and dividend income are translated into U.S. dollars using the spot rates on the NYSE, generally at 3:00 P.M. Central Time. The gains or losses, if any, on investments resulting from changes in foreign exchange rates are included in the Statements of Operations in Net realized gains (losses) on investments and Net change in unrealized appreciation (depreciation) on investments. The gains or losses, if any, on translation of other
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MULTI-MANAGER FUNDS
NOTES TO THE FINANCIAL STATEMENTS continued
assets and liabilities denominated in foreign currencies are included in Net realized gains (losses) on foreign currency transactions and Net change in unrealized appreciation (depreciation) on foreign currency translations in the Statements of Operations.
D) 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 exchange contracts are marked-to-market daily at the applicable exchange rates. Any resulting unrealized gains or losses are recorded in Net change in unrealized appreciation (depreciation) on foreign currency translations in the Statements of Operations. A Fund records realized gains or losses at the time the forward foreign currency exchange contract is offset by entering into a closing transaction with the same counterparty or is extinguished by delivery of the currency. Realized gains or losses, if any, are included in Net realized gains (losses) on foreign currency transactions in the Statements of Operations.
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. A Fund bears the market risk from changes in foreign currency exchange rates and the credit risk if the counterparty to the contract fails to perform. Further information on the impact of these positions on the Funds’ financial statements can be found in Note 9.
E) WHEN-ISSUED/DELAYED DELIVERY SECURITIES Certain Funds purchase securities with delivery or payment to occur at a later date beyond the normal settlement period. At the time the Fund enters into the commitment to purchase a security, the transaction is recorded and the value of the commitment is reflected in the NAV. The value of the commitment may vary with market fluctuations. No interest accrues to the Fund until settlement takes place. At the time the Fund enters into this type of transaction, it is required to segregate collateral of cash or other liquid assets having a fair value at least equal to the amount of the commitment. The Funds identify securities as segregated with a value that meets or exceeds the value of the commitment. When-issued securities at September 30, 2014, if any, are noted in each Fund’s Schedule of Investments and in aggregate as Payable for when-issued securities, in each Fund’s Statement of Assets and Liabilities.
F) INVESTMENT TRANSACTIONS AND INCOME Investment transactions are recorded as of the trade date. The Funds determine the gain or loss realized from investment transactions by using an identified cost basis method. Interest income is recognized on an accrual basis and includes amortization of premiums and accretion of discounts using the effective yield method. The interest rates reflected in the Schedules of Investments represent either the stated coupon rate, annualized yield on date of purchase for discount notes, the current reset rate for floating rate securities, the 7-day yield for money market funds or, for interest-only or principal-only securities, the current effective yield. Cost of investments includes amortization of premiums and accretion of discounts, if any. Dividend income is recognized on the ex-dividend date. Dividends from foreign securities are recorded on the ex-dividend date, or as soon as the information is available. Distributions received from a Fund’s investments in real estate investment trusts (“REITs”) are comprised of return of capital, capital gains and income. The actual character of the amounts received during the year is not known until the fiscal year end. A Fund records the character of distributions received from the REITs during the year based on estimates available. A Fund’s characterization may be subsequently revised based on information received from the REITs after their tax reporting periods conclude.
G) EXPENSES Each Fund is charged for those expenses that are directly attributable to that Fund. Expenses incurred which do not specifically relate to an individual Fund are allocated among all Funds in the Trust in proportion to each Fund’s relative net assets.
H) REDEMPTION FEES The Multi-Manager Emerging Markets Equity, Multi-Manager Global Listed Infrastructure, Multi-Manager Global Real Estate, Multi-Manager International Equity, Multi-Manager Emerging Markets Debt Opportunity and Multi-Manager High Yield Opportunity Funds each charge a 2 percent redemption fee on the redemption of shares (including by exchange) held for 30 days or less. For the purpose of applying the fee, the Funds use a first-in, first-out (“FIFO”) method so that shares held longest are treated as being redeemed first and shares held shortest are treated as being redeemed last. The redemption fee is paid to the Funds and is intended to offset the trading, market impact and other costs associated with short-term money movements in and out of the Funds. The redemption fee may be collected by deduction from the redemption proceeds, or, if assessed after the redemption transaction, through a separate billing. The redemption fee does not apply to certain types of redemptions as described in the Funds’ prospectuses.
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MULTI-MANAGER FUNDS
SEPTEMBER 30, 2014 (UNAUDITED) |
Redemption fees were approximately $1,000 for the six months ended September 30, 2014, for the Multi-Manager Emerging Markets Equity Fund. Redemption fees were less than $1,000 for the six months ended September 30, 2014, for the Multi-Manager Global Real Estate, Multi-Manager International Equity and Multi-Manager High Yield Opportunity Funds, respectively. There were no redemption fees for the six months ended September 30, 2014, for the Multi-Manager Global Listed Infrastructure and Multi-Manager Emerging Markets Debt Opportunity Funds. Redemption fees were approximately $1,000, $1,000 and $57,000 for the fiscal year ended March 31, 2014, for the Multi-Manager Emerging Markets Equity, Multi-Manager Global Real Estate and Multi-Manager High Yield Opportunity Funds, respectively. Redemption fees were less than $1,000 for the fiscal year ended March 31, 2014, for the Multi-Manager International Equity Fund. There were no redemption fees for the fiscal year or period ended March 31, 2014, for the Multi-Manager Global Listed Infrastructure and Multi-Manager Emerging Markets Debt Opportunity Funds. These amounts are included in Payments for Shares Redeemed in Note 8 – Capital Share Transactions. The impact from redemption fees paid to each Fund was less than $0.001 per share.
I) DISTRIBUTIONS TO SHAREHOLDERS Distributions of dividends from net investment income, if any, are declared and paid as follows:
DECLARATION AND PAYMENT FREQUENCY | ||||
Multi-Manager Emerging Markets Equity | Annually | |||
Multi-Manager Global Listed Infrastructure | Quarterly | |||
Multi-Manager Global Real Estate | Quarterly | |||
Multi-Manager International Equity | Annually | |||
Multi-Manager Large Cap | Quarterly | |||
Multi-Manager Mid Cap | Annually | |||
Multi-Manager Small Cap | Annually | |||
Multi-Manager Emerging Markets Debt Opportunity | Quarterly | |||
Multi-Manager High Yield Opportunity | Monthly |
Distributions of net realized capital gains, if any, are declared and paid at least annually. Distributions to shareholders are recorded on the ex-dividend date.
Income dividends and capital gains distributions are determined in accordance with federal income tax regulations. Such amounts may differ from income and capital gains recorded in accordance with U.S. GAAP. Accordingly, the Funds may periodically make reclassifications among certain of their capital accounts to reflect differences between financial reporting and federal income tax basis distributions. These reclassifications are reported in order to reflect the tax treatment for certain permanent differences that exist between income tax regulations and U.S. GAAP. These reclassifications may relate to paydowns, net operating losses, Section 988 currency gains and losses, Passive Foreign Investment Companies (“PFICs”) gains and losses, recharacterization of dividends received from investments in REITs, recharacterization of distributions received from investments in Master Limited Partnerships (“MLPs”), expired capital loss carryforwards, and gain or loss on in-kind transactions. These reclassifications have no impact on the total net assets or the NAVs per share of the Funds. At March 31, 2014, the following reclassifications were recorded:
Amounts in thousands | UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) | ACCUMULATED UNDISTRIBUTED NET REALIZED GAINS (LOSSES) | CAPITAL STOCK | |||||||||
Multi-Manager Emerging Markets Equity | $(383 | ) | $383 | $ — | ||||||||
Multi-Manager Global Listed Infrastructure | (1,227 | ) | 1,227 | — | ||||||||
Multi-Manager Global Real Estate | 18,952 | (18,952 | ) | — | ||||||||
Multi-Manager International Equity | 1,529 | (1,529 | ) | — | ||||||||
Multi-Manager Mid Cap | 283 | (4,611 | ) | 4,328 | ||||||||
Multi-Manager Small Cap | 1,355 | (1,355 | ) | — | ||||||||
Multi-Manager Emerging Markets Debt Opportunity | (116 | ) | 118 | (2 | ) | |||||||
Multi-Manager High Yield Opportunity | 773 | (773 | ) | — |
J) FEDERAL INCOME TAXES No provision for federal income taxes has been made since each Fund’s policy is to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute, each year, substantially all of its taxable income and capital gains to its shareholders.
For the period subsequent to October 31, 2013, through the fiscal year ended March 31, 2014, the following Funds incurred net capital losses and/or late year ordinary losses which each Fund intends to treat as having been incurred in the following fiscal year:
Amounts in thousands | ||||
Multi-Manager Emerging Markets Equity | $28,267 | |||
Multi-Manager Small Cap | 371 | |||
Multi-Manager Emerging Markets Debt Opportunity | 128 |
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MULTI-MANAGER FUNDS
NOTES TO THE FINANCIAL STATEMENTS continued
The Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated the eight-year limit on the use of capital loss carryforwards that arise in taxable years beginning after its enactment date of December 22, 2010. The changes became effective for the Funds for the fiscal year ended March 31, 2012, for the Multi-Manager Global Listed Infrastructure Fund, for the period ended March 31, 2013 and for the Multi-Manager Emerging Markets Debt Opportunity Fund, for the period ended March 31, 2014. Consequently, capital losses incurred by the Funds in taxable years beginning with the taxable year ended March 31, 2012 or taxable year or period ended November 30, 2012, as applicable can be carried forward for an unlimited period. However, capital losses incurred by the Funds in taxable years beginning before the taxable year ended March 31, 2012 or taxable year or period ended November 30, 2012, as applicable with an expiration date may not be used to offset capital gains until all net capital losses incurred in taxable years beginning with the taxable year ended March 31, 2012 or taxable year or period ended November 30, 2012, as applicable without an expiration date have been utilized. As a result, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The Funds’ ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
Capital losses incurred that will be carried forward under the provisions of the Act are as follows:
Amounts in thousands | SHORT-TERM CAPITAL LOSS CARRYFORWARD | LONG-TERM CAPITAL LOSS CARRYFORWARD | ||||||
Multi-Manager Emerging Markets Equity | $13,183 | $ — | ||||||
Multi-Manager International Equity | 95,905 | — |
The Funds in the above table may offset future capital gains with these capital loss carryforwards.
At March 31, 2014, the capital loss carryforwards for U.S. federal income tax purposes and their respective years of expiration were as follows:
Amounts in thousands | MARCH 31, 2017 | MARCH 31, 2018 | ||||||
Multi-Manager International Equity | $ — | $143,680 | ||||||
Multi-Manager Mid Cap | 3,952 | * | — |
* | Amount includes acquired capital loss carryovers which may be limited under current tax laws, expiring March 31, 2017. |
The Funds in the above table may offset future capital gains with these capital loss carryforwards.
At March 31, 2014, the tax components of undistributed net investment income, undistributed realized gains and unrealized gains were as follows:
UNDISTRIBUTED | ||||||||||||
Amounts in thousands | ORDINARY INCOME* | LONG-TERM CAPITAL GAINS | UNREALIZED GAINS (LOSSES) | |||||||||
Multi-Manager Emerging Markets Equity | $7,406 | $ — | $206,826 | |||||||||
Multi-Manager International Equity | 15,037 | — | 416,620 | |||||||||
Multi-Manager Large Cap | 5,621 | 43,690 | 171,392 | |||||||||
Multi-Manager Mid Cap | 19,039 | 62,416 | 234,924 | |||||||||
Multi-Manager Small Cap | 7,153 | 23,907 | 100,077 | |||||||||
Multi-Manager Emerging Markets Debt Opportunity | 571 | — | 1,169 | |||||||||
Multi-Manager High Yield Opportunity | 2,375 | 343 | 24,854 |
* | Ordinary income includes taxable market discount income and short-term capital gains, if any. |
The tax components of undistributed net ordinary income, net long-term capital gains and unrealized gains (losses) at November 30, 2013, the Funds’ last tax year end, were as follows:
UNDISTRIBUTED | ||||||||||||
Amounts in thousands | ORDINARY INCOME* | LONG-TERM CAPITAL GAINS | UNREALIZED GAINS (LOSSES) | |||||||||
Multi-Manager Global Listed Infrastructure | $9,310 | $1,434 | $57,210 | |||||||||
Multi-Manager Global Real Estate | 25,172 | 79,263 | 135,607 |
* | Ordinary income includes taxable market discount income and short-term capital gains, if any. |
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The tax character of distributions paid during the fiscal year or period ended March 31, 2014, was as follows:
DISTRIBUTIONS FROM | ||||||||
Amounts in thousands | ORDINARY INCOME* | LONG-TERM CAPITAL GAINS | ||||||
Multi-Manager Emerging Markets Equity | $24,600 | $ — | ||||||
Multi-Manager International Equity | 32,100 | — | ||||||
Multi-Manager Large Cap | 8,351 | 83,281 | ||||||
Multi-Manager Mid Cap | 21,351 | 126,944 | ||||||
Multi-Manager Small Cap | 7,283 | 54,288 | ||||||
Multi-Manager Emerging Markets Debt Opportunity | 714 | — | ||||||
Multi-Manager High Yield Opportunity | 48,323 | 13,759 |
* | Ordinary income includes taxable market discount income and short-term capital gains, if any. |
The tax character of distributions paid during the fiscal year ended March 31, 2013, was as follows:
DISTRIBUTIONS FROM | ||||||||
Amounts in thousands | ORDINARY INCOME* | LONG-TERM CAPITAL GAINS | ||||||
Multi-Manager Emerging Markets Equity | $25,499 | $1 | ||||||
Multi-Manager International Equity | 39,798 | — | ||||||
Multi-Manager Large Cap | 19,916 | 95,703 | ||||||
Multi-Manager Mid Cap | 7,000 | 36,554 | ||||||
Multi-Manager Small Cap | 3,500 | 8,190 | ||||||
Multi-Manager High Yield Opportunity | 46,596 | 6,280 |
* | Ordinary income includes taxable market discount income and short-term capital gains, if any. |
The tax character of distributions paid during the Multi-Manager Global Listed Infrastructure Fund’s tax year ended November 30, 2013 and Multi-Manager Global Real Estate Fund’s tax years ended November 30, 2013 and November 30, 2012 was designated for the purpose of the dividends paid deductions as follows:
NOVEMBER 30, 2013 AND NOVEMBER 30, 2012 DISTRIBUTIONS FROM | ||||||||
Amounts in thousands | ORDINARY INCOME* | LONG-TERM CAPITAL GAINS | ||||||
Multi-Manager Global Listed Infrastructure (2013) | $7,807 | $ — | ||||||
Multi-Manager Global Real Estate (2013) | 30,889 | 41,377 | ||||||
Multi-Manager Global Real Estate (2012) | 11,546 | 42,055 |
* | Ordinary income includes taxable market discount income and short-term capital gains, if any. |
As of March 31, 2014 no Fund had uncertain tax positions that would require financial statement recognition or disclosure. The Funds’ federal tax returns, except for the Multi-Manager Global Listed Infrastructure and Multi-Manager Global Real Estate Funds, filed for the fiscal years ended March 31, 2011 through March 31, 2013 remain subject to examination by the Internal Revenue Service. The Multi-Manager Global Listed Infrastructure Fund’s federal tax return for the tax year ended Novembers 30, 2012 and the Multi-Manager Global Real Estate Fund’s federal tax returns for the tax years ended November 30, 2010 through November 30, 2012 remain subject to examination by the Internal Revenue Service. Interest or penalties incurred, if any, on future unknown, uncertain tax positions taken by the Funds will be recorded as Interest expense on the Statements of Operations.
K) OTHER RISKS Certain Funds may invest in emerging market securities. Additional risks are involved when a Fund invests its assets in countries with emerging economies or securities markets. These countries generally are located in the Asia and Pacific regions, the Middle East, Eastern Europe, Central America, South America and Africa. Political and economic structures in many of these countries may lack the social, political and economic stability characteristics of more developed countries. In general, the securities markets of these countries are less liquid, subject to greater price volatility and have smaller market capitalizations. As a result, the risks presented by investments in these countries are heightened.
The Multi-Manager Global Listed Infrastructure Fund invests in MLPs. The benefits derived from the Fund’s investment in MLPs is largely dependent on the MLPs being treated as partnerships for federal income tax purposes. If any of the MLPs held by the Fund were treated as corporations for U.S. federal income tax purposes, the after-tax return to the Fund with respect to its investments in such MLPs would be materially reduced, causing a decline in the value of the common stock. The Fund must include its allocable share of an MLP’s taxable income in its reportable taxable income, whether or not it receives a distribution in cash from the MLP. In such case, the Fund may have to liquidate securities to make required distributions to shareholders.
3. SERVICE PLAN
The Trust has adopted a Service Plan pursuant to which the Trust may enter into agreements with Northern Trust, its affiliates or other institutions (“Service Organizations”) under which the Service Organizations agree to provide certain administrative support services and, in some cases, personal and account maintenance services for their customers, who are beneficial owners of shares of the Funds. As compensation for services provided pursuant to the Service Plan, the Service Organizations receive a fee at an annual rate of up to 0.25 percent of the average daily net assets of the Funds beneficially owned by their customers. There
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NOTES TO THE FINANCIAL STATEMENTS continued
were no shareholder servicing fees paid to Northern Trust or its affiliates during the six months ended September 30, 2014.
These expenses are included in the Statements of Operations under Shareholder servicing fees for the six months ended September 30, 2014.
4. BANK BORROWINGS
The Trust has entered into a $150,000,000 senior unsecured revolving credit facility on November 25, 2013, which is administered by JPMorgan Chase Bank, N.A., for liquidity and other purposes (the “Credit Facility”). The interest rate charged under the Credit Facility is equal to the sum of (i) the Federal Funds Rate plus (ii) if the one month London Interbank Offered Rate (“LIBOR”) on the date of borrowing exceeds such Federal Funds Rate, the amount by which it so exceeds, plus (iii) 1.00 percent. In addition, there is an annual commitment fee of 0.07 percent on the unused portion of the credit line under the Credit Facility, payable quarterly in arrears, which is included in Other expenses on the Statements of Operations.
At a meeting held on November 20, 2014, the Board approved an agreement that terminated, replaced and restated the Credit Facility (as so terminated, replaced and restated, the “New Credit Facility”). The New Credit Facility is in the amount of $250,000,000. The interest rate charged under the New Credit Facility is the same as it was for the Credit Facility. In addition, there is an annual commitment fee of 0.08 percent on the unused portion of the credit line under the New Credit Facility, payable quarterly in arrears. The New Credit Facility is anticipated to go into effect on November 24, 2014 and will expire on November 23, 2015, unless renewed.
At September 30, 2014, the Funds did not have any outstanding loans.
When utilized, the average dollar amounts of the borrowings and the weighted average interest rates for the six months ended September 30, 2014, on these borrowings were:
Amounts in thousands | DOLLAR AMOUNT | RATE | ||||||
Multi-Manager High Yield Opportunity | $27,600,000 | 1.16 | % |
No other Fund had any borrowings or incurred any interest expense during the six months ended September 30, 2014.
5. MANAGEMENT AND OTHER AGREEMENTS
Shareholders of each Fund have approved a new management agreement, effective June 30, 2014, between the Fund and NTI (the “Management Agreement”), to provide the Fund with investment advisory and administration services under a single agreement and fee structure. As compensation for advisory and administration services and the assumption of related expenses, NTI is entitled to a management fee, computed daily and payable monthly, at the annual rates set forth in the first table below (expressed as a percentage of each Fund’s respective average daily net assets). Prior to June 30, 2014, as compensation for advisory services and the assumption of related expenses, NTI was entitled to an advisory fee, computed daily and payable monthly, at the annual rates set forth in the second table below (expressed as a percentage of each Fund’s respective average daily net assets.) Prior to June 30, 2014, NTI, as administrator, was also entitled to an administration fee from the Funds at the annual rate of 0.15% of the average daily net assets of each Fund.
NTI has contractually agreed to reimburse a portion of the operating expenses of each Fund (other than acquired fund fees and expenses, the Fund’s proportionate share of the increase in compensation paid to each disinterested Trustee, expenses related to third-party consultants engaged by the Board of Trustees of the Trust, membership dues paid to the Investment Company Institute and Mutual Fund Directors Forum, and extraordinary expenses and interest) as shown on the accompanying Statements of Operations, to adhere to the expense limitations set forth below. The amount of the reimbursement is included in Less expenses reimbursed by investment adviser as a reduction to Total Expenses in the Statements of Operations.
At September 30, 2014, the annual management fees and contractual expense limitations for the Funds were based on the following annual rates as set forth in the table below.
CONTRACTUAL ANNUAL MANAGEMENT FEES | ||||||||||||||||
Fund | FIRST $1 BILLION | NEXT $1 BILLION | OVER $2 BILLION | CONTRACTUAL EXPENSE LIMITATIONS | ||||||||||||
Multi-Manager Emerging Markets Equity | 1.30 | % | 1.261 | % | 1.223 | % | 1.35 | % | ||||||||
Multi-Manager Global Listed Infrastructure | 0.90 | % | 0.873 | % | 0.847 | % | 1.00 | % | ||||||||
Multi-Manager Global Real Estate | 1.05 | % | 1.019 | % | 0.988 | % | 1.10 | % | ||||||||
Multi-Manager International Equity | 1.15 | % | 1.116 | % | 1.083 | % | 1.20 | % | ||||||||
Multi-Manager Large Cap | 0.88 | % | 0.854 | % | 0.828 | % | 0.90 | % | ||||||||
Multi-Manager Mid Cap | 0.98 | % | 0.951 | % | 0.922 | % | 1.00 | % | ||||||||
Multi-Manager Small Cap | 1.08 | % | 1.048 | % | 1.017 | % | 1.10 | % |
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CONTRACTUAL ANNUAL MANAGEMENT FEES | ||||||||||||||||
Fund | FIRST $1.5 BILLION | NEXT $1 BILLION | OVER $2.5 BILLION | CONTRACTUAL EXPENSE LIMITATIONS | ||||||||||||
Multi-Manager Emerging Markets Debt Opportunity | 0.85 | % | 0.825 | % | 0.80 | % | 0.93 | % | ||||||||
Multi-Manager High Yield Opportunity | 0.85 | % | 0.825 | % | 0.80 | % | 0.90 | % |
Prior to June 30, 2014, the annual advisory fees for the Funds were based on the following annual rates as set forth in the table below. There was no change to the contractual expense limitations described above.
CONTRACTUAL ANNUAL ADVISORY FEES | ||||||||||||
Fund | FIRST $1 BILLION | NEXT $1 BILLION | OVER $2 BILLION | |||||||||
Multi-Manager Emerging Markets Equity | 1.20 | % | 1.13 | % | 1.08 | % | ||||||
Multi-Manager Global Listed Infrastructure | 0.80 | % | 0.75 | % | 0.72 | % | ||||||
Multi-Manager Global Real Estate | 1.10 | % | 1.03 | % | 0.99 | % | ||||||
Multi-Manager International Equity | 1.10 | % | 1.03 | % | 0.99 | % | ||||||
Multi-Manager Large Cap | 0.90 | % | 0.85 | % | 0.81 | % | ||||||
Multi-Manager Mid Cap | 0.90 | % | 0.85 | % | 0.81 | % | ||||||
Multi-Manager Small Cap | 1.10 | % | 1.03 | % | 0.99 | % | ||||||
Multi-Manager Emerging Markets Debt Opportunity | 0.75 | % | 0.70 | % | 0.67 | % | ||||||
Fund | FIRST $1.5 BILLION | NEXT $1 BILLION | OVER $2.5 BILLION | |||||||||
Multi-Manager High Yield Opportunity | 0.80 | % | 0.75 | % | 0.72 | % |
The contractual reimbursement arrangements described above are expected to continue until at least July 31, 2015. The contractual reimbursement arrangements will continue automatically for periods of one year (each such one year period, a “Renewal Year”). The arrangements may be terminated, as to any succeeding Renewal Year, by NTI or a Fund upon 60 days’ written notice prior to the end of the current Renewal Year. The Board may terminate the contractual arrangements at any time with respect to a Fund if it determines that it is in the best interest of the Fund and its shareholders.
Pursuant to the Management Agreement with the Trust, NTI is responsible for performing and overseeing investment management services to the Funds. In addition to selecting the overall investment strategies of the Funds, NTI oversees and monitors the selection and performance of Sub-Advisers and allocates resources among the Sub-Advisers. The Sub-Advisers manage each Fund’s investment portfolio pursuant to Sub-Advisory Agreements with NTI. NTI manages the cash portion of each Fund as well as the emerging market investments of the Multi-Manager International Equity Fund.
As of September 30, 2014, Axiom International Investors, LLC, Oaktree Capital Management, L.P., PanAgora Asset Management, Inc., Pzena Investment Management LLC, and Westwood Global Investments, LLC are the Sub-Advisers for the Multi-Manager Emerging Markets Equity Fund.
As of September 30, 2014, Brookfield Investment Management, Inc. and Lazard Asset Management, LLC are the Sub-Advisers for the Multi-Manager Global Listed Infrastructure Fund.
As of September 30, 2014, CBRE Clarion Securities LLC and Delaware Investments Fund Advisers are the Sub-Advisers for the Multi-Manager Global Real Estate Fund.
As of September 30, 2014, Altrinsic Global Advisors, LLC, EARNEST Partners, LLC, NFJ Investment Group, LLC, Northern Cross, LLC and William Blair & Company, LLC are the Sub-Advisers for the Multi-Manager International Equity Fund.
As of September 30, 2014, Delaware Investments Fund Advisers, Huber Capital Management, LLC, Jennison Associates, LLC and WestEnd Advisors, LLC are the Sub-Advisers for the Multi-Manager Large Cap Fund.
As of September 30, 2014, Geneva Capital Management Ltd., LSV Asset Management and Systematic Financial Management LP are the Sub-Advisers for the Multi-Manager Mid Cap Fund.
As of September 30, 2014, Cardinal Capital Management LLC, Denver Investment Advisors LLC, Hotchkis and Wiley Capital Management LLC, Riverbridge Partners, LLC and Summit Creek Advisors, LLC are the Sub-Advisers for the Multi-Manager Small Cap Fund.
As of September 30, 2014, Bluebay Asset Management, LLP and Lazard Asset Management, LLC are the Sub-Advisers for the Multi-Manager Emerging Markets Debt Opportunity Fund.
As of September 30, 2014, DDJ Capital Management, LLC, Loomis, Sayles & Company, L.P., and Neuberger Berman Fixed Income, LLC are the Sub-Advisers for Multi-Manager High Yield Opportunity Fund.
NTI is responsible for payment of sub-advisory fees to these sub-advisers.
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Effective June 30, 2014, as compensation for services rendered as transfer agent, including the assumption by Northern Trust of the expenses related thereto, Northern Trust receives a fee, accrued daily and payable monthly, at an annual rate of 0.015 percent of the average daily net assets for each of the Funds. Prior to June 30, 2014, Northern Trust received transfer agent fees at an annual rate of 0.10 percent of the average daily net assets, accrued daily and payable monthly. The transfer agent fees are reflected in the Funds’ Statements of Operations.
NTI has a sub-administration agreement with Northern Trust, pursuant to which Northern Trust performs certain administrative services for the Funds. NTI pays Northern Trust for its sub-administration services out of NTI’s management fees. Prior to June 30, 2014, these sub-administration services were paid out of NTI’s administration fees.
For compensation as custodian, Northern Trust receives an amount based on a pre-determined schedule of charges approved by the Board. The Funds have entered into an expense off-set arrangement with the custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Funds’ custodian expenses. Custodian credits, if any, are reflected as Less custodian credits in the Funds’ Statements of Operations.
Northern Funds Distributors, LLC, the distributor for the Funds, received no compensation from the Funds under its distribution agreement. However, it received compensation from NTI for its services as distributor pursuant to a separate letter agreement between it and NTI.
Certain officers of the Trust are also officers of Northern Trust and NTI. All officers serve without compensation from the Funds. The Trust provided a deferred compensation plan for Multi-Manager Funds’ Trustees who are not officers of Northern Trust or NTI. Prior to August 22, 2013, under the deferred compensation plan, Trustees may have elected to defer all or a portion of their compensation. Effective August 22, 2013, the Trustees may no longer defer their compensation. Any amounts deferred and invested under the plan shall remain invested pursuant to the terms of the plan. Each Trustee’s account shall be deemed to be invested in shares of the Diversified Assets Portfolio of Northern Institutional Funds and/or the Global Tactical Asset Allocation Fund of the Trust and/or at the discretion of the Trust, another money market fund selected by the Trust that complies with the provisions of Rule 2a-7 under the 1940 Act or one or more short-term fixed income instruments selected by the Trust that are “eligible securities” as defined by that rule. The net investment income, gains and losses achieved by such deemed investment shall be credited to the Trustee’s account as provided in the plan.
6. RELATED PARTY TRANSACTIONS
Pursuant to an exemptive order issued by the Securities and Exchange Commission (“SEC”), each Fund invests its uninvested cash in a money market fund advised by NTI or its affiliates. Accordingly, each Fund will bear indirectly a proportionate share of that money market fund’s operating expenses. These operating expenses include the management, transfer agency and custody fees that the money market fund pays to NTI and/or its affiliates. The uninvested cash of each of the Funds currently is invested in the Diversified Assets Portfolio of Northern Institutional Funds. The aggregate annual rate of management, transfer agency and custody fees payable to NTI and/or its affiliates on any assets invested in the Diversified Assets Portfolio is 0.35 percent of average daily net assets. However, pursuant to the exemptive order, NTI will reimburse each Fund for advisory fees otherwise payable by the Fund on any assets invested in the Diversified Assets Portfolio. This reimbursement is included in Less expenses reimbursed by investment adviser as a reduction to Total Expenses on the Statements of Operations. This reimbursement’s impact on each Fund’s net expenses and net investment income ratios is included in each Fund’s Financial Highlights. The exemptive order requires the Funds’ Board to determine before a vote on the Management Agreement that the advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds are not for duplicative services.
7. INVESTMENT TRANSACTIONS
For the six months ended September 30, 2014, the aggregate costs of purchases and proceeds from sales of securities (excluding short-term investments) for the Funds were as follows:
PURCHASES | SALES | |||||||||||||||
Amounts in thousands | U.S. GOVERNMENT | OTHER | U.S. GOVERNMENT | OTHER | ||||||||||||
Multi-Manager Emerging Markets Equity | $ | — | $ | 348,818 | $ | — | $ | 440,134 | ||||||||
Multi-Manager Global Listed Infrastructure | — | 529,493 | — | 209,986 | ||||||||||||
Multi-Manager Global Real Estate | — | 872,176 | — | 926,544 | ||||||||||||
Multi-Manager International Equity | — | 476,237 | — | 690,792 | ||||||||||||
Multi-Manager | — | 53,975 | — | 130,217 | ||||||||||||
Multi-Manager | — | 246,665 | — | 328,616 |
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SEPTEMBER 30, 2014 (UNAUDITED) |
PURCHASES | SALES | |||||||||||||||
Amounts in thousands | U.S. GOVERNMENT | OTHER | U.S. GOVERNMENT | OTHER | ||||||||||||
Multi-Manager Small Cap | $ — | $66,227 | $ — | $101,227 | ||||||||||||
Multi-Manger Emerging Market Debt Opportunity | — | 153,548 | 2,050 | 121,248 | ||||||||||||
Multi-Manager High Yield Opportunity | 6,519 | 155,912 | 6,525 | 261,943 |
The difference between book basis and tax basis net unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains on certain foreign currency contracts, the deferral of post-October currency and capital losses for tax purposes, and the timing of income recognition on investments in REIT’s and PFIC’s.
At September 30, 2014, for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation, net unrealized appreciation on investments (including the effects of foreign currency translation) and the cost basis of securities were as follows:
Amounts in thousands | UNREALIZED APPRECIATION | UNREALIZED DEPRECIATION | NET APPRECIATION (DEPRECIATION) | COST BASIS OF SECURITIES | ||||||||||||
Multi-Manager Emerging Markets Equity | $ | 358,857 | $ | (133,181 | ) | $ | 225,676 | $ | 1,709,821 | |||||||
Multi-Manager Global Listed Infrastructure | 129,756 | (28,408 | ) | 101,348 | 1,318,710 | |||||||||||
Multi-Manager Global Real Estate | 100,441 | (30,423 | ) | 70,018 | 778,853 | |||||||||||
Multi-Manager International Equity | 376,636 | (104,691 | ) | 271,945 | 2,256,008 | |||||||||||
Multi-Manager Large Cap | 176,149 | (11,494 | ) | 164,655 | 439,257 | |||||||||||
Multi-Manager Mid Cap | 202,586 | (18,227 | ) | 184,359 | 688,087 | |||||||||||
Multi-Manager Small Cap | 70,495 | (12,372 | ) | 58,123 | 274,155 | |||||||||||
Multi-Manager Emerging Market Debt Opportunity | 1,002 | (4,750 | ) | (3,748 | ) | 131,872 | ||||||||||
Multi-Manager High Yield Opportunity | 20,639 | (20,364 | ) | 275 | 613,945 |
8. CAPITAL SHARE TRANSACTIONS
Transactions in capital shares for the six months ended September 30, 2014 were as follows:
Amounts in thousands | SHARES SOLD | PROCEEDS FROM SHARES SOLD | SHARES FROM REINVESTED DIVIDENDS | REINVESTMENT OF DIVIDENDS | SHARES REDEEMED | PAYMENTS FOR SHARES REDEEMED | NET INCREASE (DECREASE) IN SHARES | NET INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
Multi-Manager Emerging Markets | 4,689 | $93,631 | — | $ — | (10,014 | ) | $(200,998 | ) | (5,325 | ) | $(107,367 | ) | ||||||||||||||||||||
Multi-Manager Global Listed | 24,253 | 322,060 | 221 | 2,988 | (4,086 | ) | (54,769 | ) | 20,388 | 270,279 | ||||||||||||||||||||||
Multi-Manager Global Real Estate | 2,149 | 38,072 | 30 | 515 | (4,963 | ) | (87,329 | ) | (2,784 | ) | (48,742 | ) | ||||||||||||||||||||
Multi-Manager International Equity | 9,901 | 109,582 | — | — | (33,386 | ) | (372,359 | ) | (23,485 | ) | (262,777 | ) | ||||||||||||||||||||
Multi-Manager Large Cap | 1,465 | 14,996 | 23 | 235 | (8,831 | ) | (90,036 | ) | (7,343 | ) | (74,805 | ) | ||||||||||||||||||||
Multi-Manager Mid Cap | 2,032 | 28,243 | — | — | (7,579 | ) | (106,687 | ) | (5,547 | ) | (78,444 | ) | ||||||||||||||||||||
Multi-Manager Small Cap | 1,081 | 12,189 | — | — | (4,913 | ) | (55,714 | ) | (3,832 | ) | (43,525 | ) | ||||||||||||||||||||
Multi-Manager Emerging Market | 3,548 | 36,724 | 114 | 1,169 | (387 | ) | (4,016 | ) | 3,275 | 33,877 | ||||||||||||||||||||||
Multi-Manager High Yield | 8,834 | 94,756 | 349 | 3,755 | (18,258 | ) | (195,007 | ) | (9,075 | ) | (96,496 | ) |
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NOTES TO THE FINANCIAL STATEMENTS continued
Transactions in capital shares for the fiscal year or period ended March 31, 2014, were as follows:
Amounts in thousands | SHARES SOLD | PROCEEDS FROM SHARES SOLD | SHARES FROM REINVESTED DIVIDENDS | REINVESTMENT OF DIVIDENDS | SHARES REDEEMED | PAYMENTS FOR SHARES REDEEMED | NET INCREASE (DECREASE) IN SHARES | NET INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
Multi-Manager Emerging Markets Equity | 27,524 | $ | 504,720 | 113 | $2,105 | (41,608 | ) | $ | (764,301 | ) | (13,971 | ) | $ | (257,476 | ) | |||||||||||||||||
Multi-Manager Global Listed Infrastructure | 61,185 | 734,888 | 1,033 | 11,974 | (3,129 | ) | (37,427 | ) | 59,089 | 709,435 | ||||||||||||||||||||||
Multi-Manager Global Real Estate | 10,613 | 192,138 | 4,922 | 79,017 | (22,239 | ) | (404,515 | ) | (6,704 | ) | (133,360 | ) | ||||||||||||||||||||
Multi-Manager International Equity | 82,844 | 861,308 | 243 | 2,583 | (45,000 | ) | (467,827 | ) | 38,087 | 396,064 | ||||||||||||||||||||||
Multi-Manager Large Cap | 5,773 | 57,144 | 7,843 | 75,766 | (38,250 | ) | (382,710 | ) | (24,634 | ) | (249,800 | ) | ||||||||||||||||||||
Multi-Manager Mid Cap | 9,747 | 138,858 | 8,989 | 120,364 | (20,505 | ) | (289,237 | ) | (1,769 | ) | (30,015 | ) | ||||||||||||||||||||
Multi-Manager Small Cap | 3,633 | 41,876 | 4,558 | 50,588 | (15,326 | ) | (181,929 | ) | (7,135 | ) | (89,465 | ) | ||||||||||||||||||||
Multi-Manager Emerging Markets Debt Opportunity | 10,300 | 103,086 | 27 | 268 | (280 | ) | (2,790 | ) | 10,047 | 100,564 | ||||||||||||||||||||||
Multi-Manager High Yield Opportunity | 28,630 | 309,517 | 2,508 | 26,556 | (33,054 | ) | (355,911 | ) | (1,916 | ) | (19,838 | ) |
9. DERIVATIVE INSTRUMENTS
None of the derivatives held in the Funds have been designated as hedging instruments. Information concerning the types of derivatives in which the Funds invest, the objectives for using them and their related risks can be found in Note 2.
Below are the types of derivatives by primary risk exposure as presented in the Statements of Assets and Liabilities as of September 30, 2014:
Amounts in thousands | ASSETS | LIABILITIES | ||||||||||||
FUND NAME | DERIVATIVE TYPE | STATEMENT OF ASSETS AND LIABILITIES LOCATION | VALUE | STATEMENT OF ASSETS AND LIABILITIES LOCATION | VALUE | |||||||||
Multi-Manager Global Listed Infrastructure | Equity contracts | Net unrealized appreciation | $ — | Net unrealized depreciation | $ | (104 | )* | |||||||
Multi-Manager International Equity | Equity contracts | Net unrealized appreciation | 38 | * | Net unrealized depreciation | — | ||||||||
Multi-Manager Large Cap | Equity contracts | Net unrealized appreciation | — | Net unrealized depreciation | (33 | )* | ||||||||
Multi-Manager Mid Cap | Equity contracts | Net unrealized appreciation | — | Net unrealized depreciation | (274 | )* | ||||||||
Multi-Manager Small Cap | Equity contracts | Net unrealized appreciation | — | Net unrealized depreciation | (101 | )* | ||||||||
Multi-Manager High Yield Opportunity | Forward foreign exchange contracts | Unrealized gain on forward foreign currency exchange contracts | | 118 | | Unrealized loss on forward foreign currency exchange contracts | (57 | ) | ||||||
Interest rate contracts | Net unrealized appreciation | 71 | * | Net unrealized depreciation | — |
* | Includes cumulative appreciation/depreciation on futures contracts as reported in the Schedule of Investments footnotes. Only the current day’s variation margin is reported within the Statements of Assets and Liabilities. |
The Funds may enter into transactions subject to enforceable netting agreements or other similar arrangements (“netting agreements”). Generally, netting agreements allow the Funds to offset any exposure to a specific counterparty with any collateral received or delivered to that counterparty based on the terms of the agreements. Generally, the Funds manage their cash collateral and securities collateral on a counterparty basis.
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As of September 30, 2014, gross amounts of assets and liabilities for forward foreign exchange contracts not offset in the Statements of Assets and Liabilities, related collateral and net amounts after taking into account master netting arrangements, by counterparty, are as follows:
Amounts in thousands | GROSS AMOUNTS NOT OFFSET IN THE STATEMENTS OF ASSETS AND LIABILITIES | |||||||||||||||||
FUND NAME | COUNTERPARTY | GROSS AMOUNTS OF ASSETS PRESENTED IN STATEMENTS OF ASSETS AND LIABILITIES | FINANCIAL INSTRUMENTS | CASH COLLATERAL RECEIVED | NET AMOUNT | |||||||||||||
Multi-Manager High Yield Opportunity | Barclays | $118 | $(57) | $ | — | $ | 61 | |||||||||||
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Total | $118 | $(57) | $ | — | $ | 61 | ||||||||||||
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Amounts in thousands | GROSS AMOUNTS NOT OFFSET IN THE STATEMENTS OF ASSETS AND LIABILITIES | |||||||||||||||||
FUND NAME | COUNTERPARTY | GROSS AMOUNTS OF LIABILITIES PRESENTED IN STATEMENTS OF ASSETS AND LIABILITIES | FINANCIAL INSTRUMENTS | CASH COLLATERAL PLEDGED | NET AMOUNT | |||||||||||||
Multi-Manager High Yield Opportunity | Barclays | $ | (57) | $57 | $ | — | $ | — | ||||||||||
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| |||||||||||||||||
Total | $ | (57) | $57 | $ | — | $ | — | |||||||||||
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The following tables set forth by primary risk exposure the Funds’ realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the six months ended September 30, 2014:
Amounts in thousands | AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVE CONTRACTS | |||||||
FUND NAME | DERIVATIVE TYPE | STATEMENTS OF OPERATIONS LOCATION | VALUE | |||||
Multi-Manager Global Listed Infrastructure | Equity contracts | Net realized gains (losses) on futures contracts | $287 | |||||
Forward foreign exchange contracts | Net realized gains (losses) on foreign currency transactions | (143 | ) | |||||
Multi-Manager Global Real Estate | Forward foreign exchange contracts | Net realized gains (losses) on foreign currency transactions | (2 | ) | ||||
Multi-Manager International Equity | Equity contracts | Net realized gains (losses) on futures contracts | 380 | |||||
Multi-Manager Large Cap | Equity contracts | Net realized gains (losses) on futures contracts | 345 | |||||
Multi-Manager Mid Cap | Equity contracts | Net realized gains (losses) on futures contracts | 629 | |||||
Multi-Manager Small Cap | Equity contracts | Net realized gains (losses) on futures contracts | (232 | ) | ||||
Multi-Manager Emerging Market Debt Opportunity | Forward foreign exchange contracts | Net realized gains (losses) on foreign currency transactions | 40 | |||||
Multi-Manager High Yield Opportunity | Forward foreign exchange contracts | Net realized gains (losses) on foreign currency transactions | 40 | |||||
Interest rate contracts | Net realized gains (losses) on futures contracts | (523 | ) |
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NOTES TO THE FINANCIAL STATEMENTS continued
Amounts in thousands | CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVE CONTRACTS | |||||||
FUND NAME | DERIVATIVE TYPE | STATEMENTS OF OPERATIONS LOCATION | VALUE | |||||
Multi-Manager Global Listed Infrastructure | Equity contracts | Net change in unrealized appreciation (depreciation) on futures contracts | $ | (189 | ) | |||
Multi-Manager International Equity | Equity contracts | Net change in unrealized appreciation (depreciation) on futures contracts | (570 | ) | ||||
Multi-Manager Large Cap | Equity contracts | Net change in unrealized appreciation (depreciation) on futures contracts | (67 | ) | ||||
Multi-Manager Mid Cap | Equity contracts | Net change in unrealized appreciation (depreciation) on futures contracts | (404 | ) | ||||
Multi-Manager Small Cap | Equity contracts | Net change in unrealized appreciation (depreciation) on futures contracts | (89 | ) | ||||
Multi-Manager Emerging Market Debt Opportunity | Forward foreign exchange contracts | Net change in unrealized appreciation (depreciation) on foreign currency transactions | (34 | ) | ||||
Multi-Manager High Yield Opportunity | Forward foreign exchange contracts | Net change in unrealized appreciation (depreciation) on foreign currency transactions | 72 | |||||
Interest rate contracts | Net change in unrealized appreciation (depreciation) on futures contracts | 110 |
Volume of derivative activity for the six months ended September 30, 2014*:
FORWARD FOREIGN EXCHANGE CONTRACTS | FUTURES CONTRACTS | |||||||||||||||
NUMBER OF TRADES | AVERAGE NOTIONAL AMOUNT** | NUMBER OF TRADES | AVERAGE NOTIONAL AMOUNT** | |||||||||||||
Multi-Manager Global Listed Infrastructure | 327 | $543 | 84 | $385 | ||||||||||||
Multi-Manager Global Real Estate | 28 | 643 | — | — | ||||||||||||
Multi-Manager International Equity | — | — | 44 | 6,269 | ||||||||||||
Multi-Manager Large Cap | — | — | 22 | 4,798 | ||||||||||||
Multi-Manager Mid Cap | — | — | 15 | 7,198 | ||||||||||||
Multi-Manager Small Cap | — | — | 18 | 2,598 | ||||||||||||
Multi-Manager Emerging Market Debt Opportunity | 671 | 173 | — | — | ||||||||||||
Multi-Manager High Yield Opportunity | 13 | 911 | 2 | 8,310 |
* | Activity during the period is measured by number of trades during the period and average notional amount for forward foreign currency exchange and futures equity and interest rate contracts. |
** | Amounts in thousands. |
10. INDEMNIFICATIONS AND WARRANTIES
In the ordinary course of their business, the Funds may enter into contracts or agreements that contain indemnifications or warranties. Future events could occur that lead to the execution of these provisions against the Funds. The maximum exposure to the Funds under these provisions is unknown, as this would involve future claims that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and believe the risk of loss to be remote.
11. LEGAL PROCEEDINGS
In December 2007, the Multi-Manager Mid Cap Fund (the “Fund”), as a shareholder of Lyondell Chemical Company (“Lyondell”), participated in a cash out merger of Lyondell in which it received $48/share of merger consideration. Lyondell later filed for bankruptcy and two entities created by the Lyondell bankruptcy plan of reorganization have initiated lawsuits, based on fraudulent transfer claims, seeking to recover, or clawback, proceeds received by shareholders, including the Fund, in the December 2007 merger.
The first action, Edward S. Weisfelner, as Trustee of the LB Creditor Trust v. Fund 1, et al. (the “Creditor Action”), was initiated on October 22, 2010 and is now pending in the U.S. Bankruptcy court for the Southern District of New York. The Creditor Action asserts causes of action for intentional and constructive fraudulent transfer under state law. On January 14, 2014, the U.S. Bankruptcy Court issued a decision and order dismissing (a) the intentional fraudulent transfer claim as to all defendants
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(without prejudice), (b) the constructive fraudulent claim as to all conduits and non-beneficial owners of Lyondell stock (with prejudice), and (c) the secured lender deficiency claims that had been assigned to the Creditor Trust. The Court, however, rejected the remaining arguments in the motions to dismiss. It is anticipated that the Creditor Trust will file an amended complaint to replead the intentional fraudulent transfer claim and other claims that were not dismissed.
The second action, Edward S. Weisfelner, as trustee of the LB Litigation Trust v. A Holmes & H Holmes TTEE, et al. (the “Litigation Action”), was initiated as a putative defendant class action on December 23, 2010, in the U.S. Bankruptcy Court for the Southern District of New York. The Fund, while not expressly named, is included in the definition of the putative class of defendants. A claim for intentional fraudulent transfer under the U.S. Bankruptcy Code is the only remaining claim in this action. On February 4, 2014, the Court stated that the decision and order issued in the Creditor Action is deemed to apply in the Litigation Action. The Litigation Trust has indicated it also intends to file an amended complaint to cure deficiencies in its intentional fraudulent transfer claim.
Both the Creditor and Litigation Actions attempt to recover the proceeds paid out to the holders of Lyondell shares at the time of the 2007 merger. The value of the proceeds received by the Fund was approximately $2,179,000. The Fund cannot predict the outcome of these proceedings, but an adverse decision could have a material impact on the Fund’s net asset value. The Fund intends to vigorously defend these actions.
In 2007, the Fund was also a shareholder of the Tribune Company (“Tribune”). In December of 2007, as a part of a leveraged buy-out transaction (the “LBO”), Tribune was converted from a public company to a privately-held company. Tribune later filed for bankruptcy.
On December 7, 2010, Northern Funds was named as a defendant and a putative member of the proposed defendant class of shareholders named in an adversary proceeding (the “Committee Action”) brought by The Official Committee of Unsecured Creditors of Tribune Company (the “Committee”) in the U.S. Bankruptcy Court for the District of Delaware, in connection with Tribune’s bankruptcy proceeding. On June 2, 2011, a second suit was initiated by certain creditors of Tribune in the Delaware Superior Court with respect to claims related to the LBO (Niese et al. v. A.G. Edwards, Inc. et al.), in which Northern Funds was named as a defendant. The indenture trustees, on behalf of certain noteholders of Tribune, filed a third suit and named Northern Funds as a defendant on June 2, 2011 in the U.S. District Court for the Northern District of Illinois (Deutsche Bank Trust Co. et al. v. Ohlson Enterprises et al.). Each of these cases has now been consolidated into a Multi-District Litigation proceeding, pending in the Southern District of New York. The cases attempt to “clawback” the proceeds paid out in connection with the LBO.
The defendants have jointly moved to dismiss all of the actions filed by the individual creditors in the Niese and Deutsche Bank cases. The Committee Action was not subject to the motion to dismiss. On September 23, 2013, the District Court dismissed the individual creditors’ actions. The individual creditors filed a notice of appeal of the Court’s decision on September 30, 2013. The appeal is currently pending before the United States Court of Appeals for the Second Circuit.
The value of the proceeds received by the Multi-Manager Mid Cap Fund in the LBO was approximately $813,000. The Fund cannot predict the outcome of these proceedings, but an adverse decision could have a material impact on the Fund’s net asset value. The Fund intends to vigorously defend these actions.
12. SUBSEQUENT EVENTS
Management has evaluated subsequent events for the Funds through the date the financial statements were issued, and has concluded that there are no recognized or non-recognized subsequent events relevant for financial statement disclosure.
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MULTI-MANAGER FUNDS
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, if any, including redemption fees on certain exchanges and redemptions in the Multi-Manager Emerging Markets Equity, Multi-Manager Global Listed Infrastructure, Multi-Manager Global Real Estate, Multi-Manager International Equity, Multi-Manager Emerging Markets Debt Opportunity, and Multi-Manager High Yield Opportunity Funds; and (2) ongoing costs, including advisory fees and other fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, April 1, 2014 through September 30, 2014.
ACTUAL EXPENSES
The first line of the tables below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled 4/1/14 - 9/30/14 to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the tables below provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5 percent per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5 percent hypothetical example with the 5 percent hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads), redemption fees, or exchange fees or other costs such as advisory fees related to affiliated money market funds investments, but shareholders of other funds may incur such costs. For example, the information does not reflect redemption fees (as described on page 86 & 87), if any, in the Multi-Manager Emerging Markets Equity, Multi-Manager Global Listed Infrastructure, Multi-Manager Global Real Estate, Multi-Manager International Equity, Multi-Manager Emerging Markets Debt Opportunity, and Multi-Manager High Yield Opportunity Funds. If these fees were included, your costs would have been higher. The information also does not reflect reimbursements on advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds (as described on page 92), which may result in different expense ratios in the Financial Highlights. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
MULTI-MANAGER EMERGING MARKETS EQUITY
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/2014 | ENDING ACCOUNT VALUE 9/30/2014 | EXPENSES PAID* | |||||||||||||
Actual | 1.35 | % | $ | 1,000.00 | $ | 1,019.00 | $ | 6.83 | ||||||||
Hypothetical** | 1.35 | % | $ | 1,000.00 | $ | 1,018.30 | $ | 6.83 |
MULTI-MANAGER GLOBAL LISTED INFRASTRUCTURE
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/2014 | ENDING ACCOUNT VALUE 9/30/2014 | EXPENSES PAID* | |||||||||||||
Actual | 1.00 | % | $ | 1,000.00 | $ | 1,037.50 | $ | 5.11 | ||||||||
Hypothetical** | 1.00 | % | $ | 1,000.00 | $ | 1,020.05 | $ | 5.06 |
MULTI-MANAGER GLOBAL REAL ESTATE
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/2014 | ENDING ACCOUNT VALUE 9/30/2014 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 1.10 | % | $ | 1,000.00 | $ | 1,010.10 | $ | 5.54 | ||||||||
Hypothetical** | 1.10 | % | $ | 1,000.00 | $ | 1,019.55 | $ | 5.57 |
MULTI-MANAGER INTERNATIONAL EQUITY
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/2014 | ENDING ACCOUNT VALUE 9/30/2014 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 1.20 | % | $ | 1,000.00 | $ | 983.50 | $ | 5.97 | ||||||||
Hypothetical** | 1.20 | % | $ | 1,000.00 | $ | 1,019.05 | $ | 6.07 |
MULTI-MANAGER LARGE CAP
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/2014 | ENDING ACCOUNT VALUE 9/30/2014 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.90 | % | $ | 1,000.00 | $ | 1,049.60 | $ | 4.62 | ||||||||
Hypothetical** | 0.90 | % | $ | 1,000.00 | $ | 1,020.56 | $ | 4.56 |
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MULTI-MANAGER MID CAP
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/2014 | ENDING ACCOUNT VALUE 9/30/2014 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 1.00 | % | $ | 1,000.00 | $ | 997.80 | $ | 5.01 | ||||||||
Hypothetical** | 1.00 | % | $ | 1,000.00 | $ | 1,020.05 | $ | 5.06 |
MULTI-MANAGER SMALL CAP
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/2014 | ENDING ACCOUNT VALUE 9/30/2014 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 1.10 | % | $ | 1,000.00 | $ | 954.00 | $ | 5.39 | ||||||||
Hypothetical** | 1.10 | % | $ | 1,000.00 | $ | 1,019.55 | $ | 5.57 |
MULTI-MANAGER EMERGING MARKETS DEBT OPPORTUNITY
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/2014 | ENDING ACCOUNT VALUE 9/30/2014 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.94 | % | $ | 1,000.00 | $ | 1,000.70 | $ | 4.71 | ||||||||
Hypothetical** | 0.94 | % | $ | 1,000.00 | $ | 1,020.36 | $ | 4.76 |
MULTI-MANAGER HIGH YIELD OPPORTUNITY
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/2014 | ENDING ACCOUNT VALUE 9/30/2014 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.90 | % | $ | 1,000.00 | $ | 1,003.10 | $ | 4.52 | ||||||||
Hypothetical** | 0.90 | % | $ | 1,000.00 | $ | 1,020.56 | $ | 4.56 |
* | Expenses are calculated using the Funds’ annualized expense ratios, which represent ongoing expenses as a percentage of net assets for the six months ended September 30, 2014. Expenses are calculated by multiplying the annualized expense ratio by the average account value of the period; then multiplying the result by the number of days in the most recent fiscal half year (183); and then dividing that result by the number of days in the current fiscal year (365). |
** | Hypothetical expenses are based on the Funds’ actual annualized expense ratios and an assumed rate of return of 5 percent per year before expenses. |
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APPROVAL OF SUB-ADVISORY AGREEMENTS
The Board of Trustees of Northern Multi-Manager Funds (the “Board” or the “Trustees”) oversees and reviews the investment performance and expenses of Northern Multi-Manager Funds at regularly scheduled meetings held during the Funds’ fiscal year. In addition, the Trustees determine annually whether to approve and continue the Sub-advisory agreements among Northern Trust Investments (“NTI”) and the Multi-Manager Funds
The Sub-Advisory Agreements were re-approved with respect to all of the Multi-Manager Funds by the Board, including a majority of the Trustees who are not party to a sub-advisory agreement or “interested persons” (as defined in the Investment Company Act of 1940, as amended) of any party thereto (the “Independent Trustees”) voting separately, at the regularly scheduled meeting of the Board held on May 21, 2014 (the “May 2014 Meeting”).
The Trustees reviewed and discussed information and written materials from Northern and the sub-advisers regarding (i) the nature and quality of the investment advisory services to be provided by the sub-advisers, including the experience and qualifications of the personnel providing such services; (ii) the sub-advisers’ financial conditions, history of operations and ownership structures; (iii) the sub-advisers’ brokerage and soft dollar practices; (iv) the sub-advisers’ investment strategies and styles of investing; (v) the performance history of the sub-advisers with respect to the applicable Fund; (vi) each sub-adviser’s compliance policies and procedures (including their codes of ethics) and the Trust’s CCO’s evaluations of such policies and procedures; (vii) the sub-advisers’ conflicts of interest in managing the Multi-Manager Funds; and (viii) the terms of the existing and proposed sub-advisory agreements. The Trustees also reviewed and discussed Northern’s strategy for allocating assets among the various sub-advisers and the current allocations sub-advisers.
In evaluating the sub-advisory agreements, the Trustees gave weight to various factors but did not identify any single factor as controlling their decision. However, the Trustees relied upon the recommendations and evaluations of Northern with respect to each of the sub-advisers.
Nature, Extent and Quality of Services
The Trustees considered the information and evaluations provided by Northern with respect to each sub-adviser’s operations, qualifications and experience in managing the type of strategies for which the sub-adviser was engaged in connection with a Fund. The Trustees also considered the CCO’s compliance program and the compliance monitoring schedule for each sub-adviser. The Trustees concluded that each sub-adviser had provided, and/or was able to provide, quality services to the Funds.
Fees, Expenses and Performance
With respect to the sub-advisory fees, the Trustees considered that the sub-advisers were each paid by Northern out of its advisory fees and not by the Funds. The Trustees believed, based on Northern’s representations, that each sub-advisory agreement had been negotiated at arms’ length among Northern and each sub-adviser. In addition, the Trustees reviewed and compared each sub-adviser’s fees paid by a Fund and fees paid to the sub-adviser by its other institutional accounts with similar strategies. Finally, the Trustees also considered Northern’s representations that the fees to be paid to the sub-advisers were reasonable in light of the existing and anticipated quality of the services to be performed by them.
While the Trustees considered Northern’s profitability with respect to each Fund, they did not consider the sub-advisers’ projected profitability as they did not consider it to be particularly relevant because Northern paid the sub-advisers out of its advisory fees. The Trustees therefore believed that Northern has an incentive to negotiate the lowest possible sub-advisory fees.
The Trustees considered and evaluated the performance information presented with respect to each sub-adviser and Northern’s evaluation of sub-adviser performance. This information was compared to performance information with respect to each Fund’s applicable benchmark. It was noted that each sub-adviser had a different style, and that these styles would underperform in various markets. The Trustees concluded, based upon the information provided, that the sub-advisers’ performance records were generally satisfactory and where there had been sub-adviser underperformance, Northern had acted quickly to either change sub-advisers or had made other changes to improve Fund performance.
Economies of Scale
The Trustees considered information prepared by Northern that showed that the levels of aggregate sub-advisory fee rates decreased as the Funds’ assets increased. However, the Trustees generally considered economies of scale with respect to the Funds primarily at the advisory level given that Northern pays the sub-advisers out of its advisory fees. It was noted by the Trustees that each sub-adviser had breakpoints incorporated into its sub-advisory fees except for three firms.
Other Benefits
The Trustees considered other benefits derived or to be derived by certain of the sub-advisers as a result of their relationship with the Funds. These benefits included in certain cases research and other benefits in connection with brokerage commissions paid by the Funds and, in some cases, affiliated brokerage commissions received on Fund brokerage transactions. The Trustees also considered the other relationships that certain of the sub-advisers
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had with Northern, including other sub-advisory or custodial relationships.
Based on the Trustees’ deliberations and the recommendations by Northern, the Trustees concluded that the fees to be paid to the sub-advisers on a Fund-by-Fund basis were reasonable in light of the services provided, or to be provided, by each of them and that the sub-advisory agreements should be re-approved.
Geneva and Delaware Investments Sub-Advisory Agreements
At a regularly scheduled meeting held on August 20, 2014, the Trustees, including a majority of the Independent Trustees voting separately, considered and approved a sub-advisory agreement between NTI and Geneva Capital Management (“Geneva”) on behalf of the Multi-Manager Mid Cap Fund and a sub-advisory agreement between NTI and Delaware Investment Management Company (“Delaware Investments”) on behalf of the Multi-Manager Global Real Estate Fund.
The Trustees discussed the proposed approval of the new sub-advisory agreements with Delaware Investments and Geneva (referred to below together as the “sub-advisers”). They first reviewed relevant information from their evaluations of the sub-advisers from the May 2014 Meeting. They then discussed the new information presented by Northern at this meeting about the sub-advisers. The items considered included (i) the nature and quality of the investment advisory services to be provided by the sub-advisers, including the experience and qualifications of the personnel providing such services; (ii) the sub-advisers’ financial conditions, history of operations and ownership structures; (iii) the sub-advisers’ brokerage and soft dollar practices; (iv) the sub-advisers’ investment strategies and styles of investing; (v) the performance history of the sub-advisers with respect to their respective Funds; (vi) each sub-adviser’s compliance policies and procedures (including their codes of ethics) and the Trust’s CCO’s evaluations of such policies and procedures; (vii) the sub-advisers’ conflicts of interest in managing the Multi-Manager Funds; and (viii) the terms of the existing and proposed sub-advisory agreements. The Trustees also discussed Northern’s proprietary method for allocating assets among the various sub-advisers and the current allocations among the sub-advisers.
In evaluating the sub-advisory agreements, the Trustees gave weight to various factors but did not identify any single factor as controlling their decision. However, the Trustees relied upon the recommendations and evaluations of Northern with respect to each of the sub-advisers. With respect to Geneva, the Trustees considered that the event triggering reconsideration of the sub-advisory agreement was a proposed change of control transaction, which would result in the termination of the sub-advisory agreement on the date of the transaction.
Nature, Extent and Quality of Services
The Trustees considered the information and evaluations provided with respect to each sub-adviser’s operations, qualifications and experience in managing the type of strategies for which the sub-adviser was to be engaged in connection with a Fund. The Trustees also considered the CCO’s evaluations of the sub-advisers’ compliance program and the compliance monitoring schedule for each sub-adviser. The Trustees concluded that each sub-adviser had provided, and/or was able to provide, satisfactory services to the Funds.
Fees, Expenses and Performance
With respect to the sub-advisory fees, the Trustees considered that the sub-advisers were each to be paid by Northern out of its advisory fees and not by the Funds. The Trustees also believed, based on Northern’s representations, that each sub-advisory agreement had been negotiated at arms’ length among Northern and each sub-adviser. The Trustees also considered the sub-advisers’ fees in relation to their other similar institutional accounts. Finally, the Trustees also considered Northern’s representations that the fees to be paid to the sub-advisers were reasonable in light of the existing and anticipated quality of the services to be performed by them.
While the Trustees considered Northern’s profitability with respect to each Fund, they did not consider the sub-advisers’ projected profitability as they did not consider it to be particularly relevant because Northern paid the sub-advisers out of its advisory fees. The Trustees therefore believed that Northern has an incentive to negotiate the lowest possible sub-advisory fees. The Trustees considered and evaluated the performance information presented with respect to each sub-adviser and Northern’s evaluation of sub-adviser performance. Because Delaware Investments had not previously managed assets of the Multi-Manager Global Real Estate Fund, the Trustees considered hypothetical performance as provided and calculated by Northern in addition to Delaware Investments’ actual performance record in the strategy for which it was being engaged. The Trustees evaluated Geneva’s historical performance with respect to the Multi-Manager Mid Cap Fund. This information was compared to performance information with respect to each Fund’s and sub-adviser’s applicable benchmark. It was noted that each sub-adviser had a different style than the other sub-advisers to the applicable Fund and that these styles would underperform in various markets. The Trustees concluded, based upon the information provided, that the sub-advisers’ performance records were generally satisfactory.
Economies of Scale
The Trustees considered information prepared by Northern that showed that the levels of aggregate sub-advisory fee rates
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decreased as the Funds’ assets increased. However, the Trustees generally considered economies of scale with respect to the Funds primarily at the advisory level given that Northern pays the sub-advisers out of its advisory fees.
Other Benefits
The Trustees considered other benefits derived or to be derived by the sub-advisers as a result of their relationship with the Funds. These benefits included research and other benefits in connection with brokerage commissions paid by the Funds. The Trustees also considered the other relationships that the sub-advisers had with Northern, including other sub-advisory or custodial relationships.
Based on the Trustees’ deliberations and the recommendations by Northern, the Trustees concluded that the fees to be paid to the sub-advisers on a Fund-by-Fund basis were reasonable in light of the services to be provided by each of them and that the sub-advisory agreements should be approved.
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PORTFOLIO HOLDINGS
Northern Funds files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s Web site at sec.gov. You may also review and obtain copies at the SEC’s Public Reference Room in Washington, D.C. Information about the Public Reference Room may be obtained by calling 800-SEC-0330.
PROXY VOTING
Northern Funds’ Proxy Voting Policies and Procedures and each Fund’s portfolio securities voting record for the 12-month period ended June 30 are available upon request and without charge by visiting Northern Funds’ Web site at northernfunds.com or the SEC’s Web site at sec.gov or by calling the Northern Funds Center at 800-595-9111.
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The report has been prepared for the general information of Northern Global Tactical Asset Allocation Fund shareholders. It is not authorized for distribution to prospective investors unless accompanied or preceded by a current Northern Global Tactical Asset Allocation Fund prospectus, which contains complete information about Northern Global Tactical Asset Allocation Fund’s investment policies, management fees and expenses. Investors are reminded to read the prospectus carefully before investing or sending money.
The recent volatility in the stock market has produced short-term returns that are not typical and may not continue in the future. Because of ongoing market volatility, the Northern Global Tactical Asset Allocation Fund’s performance may be subject to substantial short-term changes.
This report contains certain forward-looking statements about factors that may affect the performance of the Northern Global Tactical Asset Allocation Fund in the future. These statements are based on Northern Global Tactical Asset Allocation Fund management’s 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 forward-looking statements to be reasonable, although they are inherently uncertain and difficult to predict. Actual events may cause adjustments in Northern Global Tactical Asset Allocation Fund management strategies from those currently expected to be employed.
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 SEMIANNUAL REPORT | 1 | GLOBAL TACTICAL ASSET ALLOCATION FUND |
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GLOBAL TACTICAL ASSET ALLOCATION FUND
STATEMENT OF ASSETS AND LIABILITIES | SEPTEMBER 30, 2014 (UNAUDITED) |
Amounts in thousands, except per share data | GLOBAL TACTICAL ASSET ALLOCATION FUND | |||
ASSETS: | ||||
Investments, at cost (1) | $72,428 | |||
Investments, at value (2) | $80,306 | |||
Dividend income receivable | 18 | |||
Receivable for securities sold | 316 | |||
Receivable for fund shares sold | 41 | |||
Receivable from investment adviser | 2 | |||
Prepaid and other assets | 10 | |||
Total Assets | 80,693 | |||
LIABILITIES: | ||||
Cash overdraft | 247 | |||
Payable for fund shares redeemed | 71 | |||
Payable to affiliates: | ||||
Management fees (Note 5) | 3 | |||
Custody and accounting fees | 3 | |||
Shareholder servicing fees | 4 | |||
Trustee fees | 6 | |||
Accrued other liabilities | 24 | |||
Total Liabilities | 358 | |||
Net Assets | $80,335 | |||
ANALYSIS OF NET ASSETS: | ||||
Capital stock | $75,326 | |||
Accumulated undistributed net investment income | 111 | |||
Accumulated undistributed net realized loss | (2,980 | ) | ||
Net unrealized appreciation | 7,878 | |||
Net Assets | $80,335 | |||
Shares Outstanding ($.0001 par value, unlimited shares authorized): | 6,586 | |||
Net Asset Value, Redemption and Offering Price Per Share: | $12.20 |
(1) | Amount includes cost of $72,428 in affiliated funds. |
(2) | Amount includes value of $80,306 in affiliated funds. |
See Notes to the Financial Statements.
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GLOBAL TACTICAL ASSET ALLOCATION FUND
STATEMENT OF OPERATIONS | SIX MONTHS ENDED SEPTEMBER 30, 2014 (UNAUDITED) |
Amounts in thousands | GLOBAL TACTICAL ASSET ALLOCATION FUND | |||
INVESTMENT INCOME: | ||||
Dividend income (1) | $627 | |||
Total Investment Income | 627 | |||
EXPENSES: | ||||
Management fees (Note 5) | 50 | |||
Investment advisory fees (Note 5) | 52 | |||
Administration fees (Note 5) | 31 | |||
Custody fees | 12 | |||
Accounting fees | 7 | |||
Transfer agent fees | 24 | |||
Blue sky fees | 13 | |||
SEC fees | 2 | |||
Printing fees | 17 | |||
Audit fees | 9 | |||
Legal fees | 8 | |||
Shareholder servicing fees | 5 | |||
Trustee fees | 9 | |||
Other | 5 | |||
Total Expenses | 244 | |||
Less waivers of investment advisory fees | (21 | ) | ||
Less expenses reimbursed by investment adviser | (111 | ) | ||
Net Expenses | 112 | |||
Net Investment Income | 515 | |||
NET REALIZED AND UNREALIZED GAINS (LOSSES): | ||||
Net realized gains on investments (2) | 718 | |||
Net change in unrealized depreciation on investments (3) | (710 | ) | ||
Net Gains | 8 | |||
Net Increase in Net Assets Resulting from Operations | $523 |
(1) | Amount includes dividend income from affiliated funds of $627. |
(2) | Amount includes net realized gains from affiliated funds of $718. |
(3) | Amount includes net change in unrealized depreciation from affiliated funds of $710. |
See Notes to the Financial Statements.
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GLOBAL TACTICAL ASSET ALLOCATION FUND
STATEMENTS OF CHANGES IN NET ASSETS | FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2014 (UNAUDITED) |
OR THE FISCAL YEAR ENDED MARCH 31, 2014
GLOBAL TACTICAL ASSET ALLOCATION FUND | ||||||||
Amounts in thousands | SEPT. 30, 2014 | MARCH 31, 2014 | ||||||
OPERATIONS: | ||||||||
Net investment income | $515 | $1,317 | ||||||
Net realized gains | 718 | 310 | ||||||
Net change in unrealized appreciation (depreciation) | (710 | ) | 4,737 | |||||
Net Increase in Net Assets Resulting from Operations | 523 | 6,364 | ||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||
Net increase (decrease) in net assets resulting from capital share transactions | (1,364 | ) | 12,557 | |||||
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions | (1,364 | ) | 12,557 | |||||
DISTRIBUTIONS PAID: | ||||||||
From net investment income | (415 | ) | (1,367 | ) | ||||
Total Distributions Paid | (415 | ) | (1,367 | ) | ||||
Total Increase (Decrease) in Net Assets | (1,256 | ) | 17,554 | |||||
NET ASSETS: | ||||||||
Beginning of period | 81,591 | 64,037 | ||||||
End of period | $80,335 | $81,591 | ||||||
Accumulated Undistributed Net Investment Income | $111 | $11 |
See Notes to the Financial Statements.
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GLOBAL TACTICAL ASSET ALLOCATION FUND
FINANCIAL HIGHLIGHTS
GLOBAL TACTICAL ASSET ALLOCATION FUND * | SHARES/CLASS A SHARES | |||||||||||||||||||||||||||
Selected per share data | SIX MONTHS ENDED SEPT. 30, 2014 (UNAUDITED) | YEAR 2014 | YEAR ENDED MARCH 31, 2013 | FOUR MONTHS ENDED MARCH 31, 2012 | YEAR ENDED NOV. 30, 2011 | YEAR ENDED NOV. 30, 2010(1) | YEAR ENDED NOV. 30, 2009(1) | |||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.20 | $11.40 | $10.61 | $9.97 | $9.80 | $9.33 | $7.81 | |||||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||||||
Net investment income | 0.08 | 0.20 | 0.21 | 0.10 | 0.24 | (2) | 0.23 | 0.41 | ||||||||||||||||||||
Net realized and unrealized gains (losses) | (0.02 | ) | 0.81 | 0.79 | 0.63 | 0.19 | 0.47 | 1.34 | ||||||||||||||||||||
Total from Investment Operations | 0.06 | 1.01 | 1.00 | 0.73 | 0.43 | 0.70 | 1.75 | |||||||||||||||||||||
LESS DISTRIBUTIONS PAID: | ||||||||||||||||||||||||||||
From net investment income | (0.06 | ) | (0.21 | ) | (0.21 | ) | (0.09 | ) | (0.26 | ) | (0.23 | ) | (0.23 | ) | ||||||||||||||
Total Distributions Paid | (0.06 | ) | (0.21 | ) | (0.21 | ) | (0.09 | ) | (0.26 | ) | (0.23 | ) | (0.23 | ) | ||||||||||||||
Net Asset Value, End of Period | $12.20 | $12.20 | $11.40 | $10.61 | $9.97 | $9.80 | $9.33 | |||||||||||||||||||||
Total Return (3) | 0.48 | % | 8.96 | % | 9.60 | % | 7.42 | % | 4.37 | % | 7.66 | % | 22.77 | % | ||||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | ||||||||||||||||||||||||||||
Net assets, in thousands, end of period | $80,335 | $81,591 | $64,037 | $35,194 | $26,373 | $13,518 | $20,708 | |||||||||||||||||||||
Ratio to average net assets of: (4) | ||||||||||||||||||||||||||||
Expenses, net of waivers, reimbursements and credits | 0.26 | %(5)(6) | 0.25 | %(5)(6) | 0.25 | %(5)(6) | 0.26 | %(5)(6) | 0.25 | %(5)(6) | 0.25 | %(6) | 0.24 | %(6) | ||||||||||||||
Expenses, before waivers, reimbursements and credits | 0.57 | %(6) | 0.75 | %(6) | 0.91 | %(6) | 1.01 | %(6) | 1.50 | %(6) | 1.03 | %(6) | 0.99 | %(6) | ||||||||||||||
Net investment income, net of waivers, reimbursements and credits | 1.21 | %(5) | 1.79 | %(5) | 2.02 | %(5) | 3.12 | %(5) | 2.58 | %(2)(5) | 2.49 | % | 4.88 | % | ||||||||||||||
Net investment income, before waivers, reimbursements and credits | 0.90 | % | 1.29 | % | 1.36 | % | 2.37 | % | 1.33 | %(2) | 1.71 | % | 4.13 | % | ||||||||||||||
Portfolio Turnover Rate | 11.79 | % | 23.95 | % | 73.25 | % | 14.46 | % | 76.63 | % | 87.17 | % | 126.86 | % |
(1) | Net investment income for the year ended was calculated using the average shares outstanding method. |
(2) | The net investment income per share and net investment income ratios include a one-time voluntary contribution of approximately $36,000 relating to shareholder servicing fees earned by Northern Trust, which represents 0.22 percent of average net assets and $0.02 of net investment income per share for the fiscal year ended November 30, 2011. |
(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. Total return is not annualized for periods less than one year. |
(4) | Annualized for periods less than one year. |
(5) | 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 less than $1,000, which represents less than 0.005 percent of average net assets for the six months ended September 30, 2014, the fiscal years ended March 31, 2014, March 31, 2013, the four months ended March 31, 2012 and the fiscal year ended November 30, 2011, respectively. Absent the additional reimbursement, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount. |
(6) | Expense ratios reflect only the direct expenses of the Fund and not any expenses associated with the underlying funds. |
* | As of the close of business August 1, 2011, the assets and liabilities of the Global Tactical Asset Allocation Portfolio (the “Predecessor Fund”), an investment portfolio of the Northern Institutional Funds, were transferred to the Fund pursuant to a plan of reorganization approved by the Predecessor Fund’s Board of Trustees on February 17, 2011 (the “Reorganization”). Prior to the Reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund and therefore information for the periods prior to and including August 1, 2011 relates to the Predecessor Fund. |
See Notes to the Financial Statements.
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SCHEDULE OF INVESTMENTS
GLOBAL TACTICAL ASSET ALLOCATION FUND | SEPTEMBER 30, 2014 (UNAUDITED) |
NUMBER OF SHARES | VALUE (000s) | |||||||
FUND ALLOCATION – INVESTMENT COMPANIES – 100.0% | ||||||||
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund (1) | 133,328 | $3,305 | ||||||
FlexShares Morningstar Developed Markets ex-U.S. Factor Tilt | 256,977 | 15,878 | ||||||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund (1) | 88,450 | 4,628 | ||||||
FlexShares Morningstar Global Upstream Natural Resources | 45,251 | 1,557 | ||||||
FlexShares Morningstar U.S. Market Factor Tilt Index Fund (1) | 269,762 | 22,463 | ||||||
FlexShares STOXX Global Broad Infrastructure Index Fund (1) | 54,092 | 2,437 | ||||||
Northern Funds – Bond Index Fund (1) | 1,211,592 | 12,879 | ||||||
Northern Funds – Global Real Estate Index Fund (1) | 248,398 | 2,360 | ||||||
Northern Funds – High Yield Fixed Income Fund (1) | 1,425,991 | 10,595 | ||||||
Northern Funds – Short Bond Fund (1) | 220,915 | 4,204 | ||||||
Total Investment Companies | ||||||||
(Cost $72,428) | 80,306 | |||||||
Total Investments – 100.0% | ||||||||
(Cost $72,428) | 80,306 | |||||||
Other Assets less Liabilities – 0.0% | 29 | |||||||
NET ASSETS – 100.0% | $80,335 |
(1) | Investment in affiliated fund. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to other Northern Funds and FlexShares Trust. |
TIPS – Treasury Inflation Protected Securities
Percentages shown are based on Net Assets.
At September 30, 2014, the asset class weightings for the Fund were:
ASSET CLASS | WEIGHT | INVESTMENT VEHICLE | ||||
U.S. Equity | 28.0% | FlexShares Morningstar U.S. Market Factor Tilt Index | ||||
Non U.S. Equity – Developed | 19.8 | FlexShares Morningstar Developed Markets ex-U.S. Factor Tilt Index | ||||
Non U.S. Equity – Emerging | 5.8 | FlexShares Morningstar Emerging Markets Factor Tilt Index | ||||
Global Real Estate | 2.9 | NF Global Real Estate Index | ||||
U.S. Bonds High Yield | 13.2 | NF High Yield Fixed Income | ||||
U.S. Bonds Intermediate | 16.1 | NF Bond Index | ||||
U.S. Bonds Inflation Protected | 4.1 | FlexShares iBoxx 5-Year Target Duration TIPS Index | ||||
U.S. Bonds Short | 5.2 | NF Short Bond | ||||
Global Infrastructure | 3.0 | FlexShares STOXX Global Broad Infrastructure Index | ||||
Global Natural Resources | 1.9 | FlexShares Morningstar Global Upstream Natural Resources Index | ||||
Total | 100.0% |
NF – Northern Funds
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:
Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).
Level 3 – Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2014:
LEVEL 1 (000s) | LEVEL 2 (000s) | LEVEL 3 (000s) | TOTAL (000s) | |||||||||||||
Investment Companies | $80,306 | $– | $– | $80,306 |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period.
At September 30, 2014, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2014.
See Notes to the Financial Statements.
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GLOBAL TACTICAL ASSET ALLOCATION FUND
SEPTEMBER 30, 2014 (UNAUDITED) |
1. ORGANIZATION
Northern Funds (the “Trust”) is a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust offers 48 funds as of September 30, 2014, each with its own investment objective (e.g., long-term capital appreciation, total return or income consistent with preservation of capital). The Global Tactical Asset Allocation Fund (the “Fund”) is a separate, diversified investment portfolio of the Trust. The Fund seeks to provide long-term capital appreciation and current income by investing primarily in shares of a combination of underlying mutual funds and exchange-traded funds (“ETFs”) to which Northern Trust Investments, Inc. (“NTI”), the Fund’s investment adviser, or an affiliate of NTI acts as investment adviser. The Fund also may invest in other unaffiliated mutual funds and ETFs (together with affiliated underlying funds and ETFs, the “Underlying Funds”) and other securities and investments not issued by mutual funds.
NTI is a subsidiary of The Northern Trust Company (“Northern Trust”). Northern Trust serves as the custodian and transfer agent for the Trust. NTI serves as the Trust’s administrator. Northern Funds Distributors, LLC is the Trust’s distributor.
2. SIGNIFICANT ACCOUNTING POLICIES
The Trust, which is an investment company within the scope of Financial Accounting Standards Board (“FASB”) Accounting Standards Update 2013-08, follows accounting and reporting guidance under FASB Accounting Standards Codification Topic 946, “Financial Services-Investment Companies.”
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“U.S.”), or “U.S. GAAP”. The preparation of financial statements in conformity with U.S. 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 may differ from those estimates.
The net asset value (“NAV”) of the Fund is determined daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), generally 3:00 P.M. Central Time, on each day the NYSE is open for trading.
A) VALUATION OF SECURITIES Securities are valued at their fair value. Securities traded on U.S. securities exchanges or in the NASDAQ National Market System are principally valued at the regular trading session closing price (generally, 3:00 P.M. Central Time) on the exchange or market in which such securities are principally traded. If any such security is not traded on a valuation date, it is valued at the most recent quoted bid price. Over-the-counter securities not reported in the NASDAQ National Market System are also generally valued at the most recent quoted bid price.
The values of securities of foreign issuers are generally based upon market quotations which, depending upon local convention or regulation, may be the last sale price, the last bid price or the mean between the last bid and asked price as of, in each case, the close of the appropriate exchange or other designated time.
Shares of open-end investment companies, other than ETFs, are valued at their NAV. Short-term investments with a maturity of 60 days or less are valued at their amortized cost, which NTI, as authorized by the Fund’s Board of Trustees (the “Board”), has determined approximates fair value.
Any securities for which market quotations are not readily available or are believed to be incorrect are valued at fair value as determined in good faith by NTI under the supervision of the Board. The Trust, in its discretion, may make adjustments to the prices of securities held by the Fund if an event occurs after the publication of fair values normally used by the Fund but before the time as of which the Fund calculates its NAV, depending on the nature and significance of the event, consistent with applicable regulatory guidance and U.S. GAAP. This may occur particularly with respect to certain foreign securities held by the Fund, in which case the Trust may use adjustment factors obtained from an independent evaluation service that are intended to reflect more accurately the fair value of those securities as of the time the Fund’s NAV is calculated.
Northern Trust’s Pricing Unit (the “NT Pricing Unit”) is responsible for supplying a value for each portfolio security used in the NAV computations. Securities or other assets for which market quotations are not readily available or for which market quotations do not represent the value at the time of pricing are fair valued in accordance with policies and procedures established by, and subject to oversight of, the Fund’s Board. NTI has established a pricing and valuation committee (the “Asset Management PVC”) whose membership includes representatives of NTI, as well as independent control personnel from Northern Trust’s Legal and Fund Administration and NTI’s Compliance and Risk Management groups. The Asset Management PVC is responsible for the fair valuation of portfolio securities and the monitoring of the fair valuation process, subject to the Board’s oversight.
The Asset Management PVC is responsible for making the determination of the fair value of a security. In making its determination, the Asset Management PVC considers factors that it
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GLOBAL TACTICAL ASSET ALLOCATION FUND
NOTES TO THE FINANCIAL STATEMENTS continued
deems appropriate to the determination of the fair value of the security. Such factors include, but are not limited to, the type of security; the current financial position of the issuer; the cost of the investment; information as to any transactions or offers with respect to a security; market value of a similar freely-traded security; and news events. NTI will continue to monitor markets and the issuer’s circumstances that affect a security’s valuation to determine the continued appropriateness of a security’s fair valuation. The Asset Management PVC will review if the markets and issuer’s circumstances relevant to the valuation of a fair valued security change materially.
For each Level 3 security, if any, that has been fair valued pursuant to the policies adopted by the Board, the fair value price is compared against the last available and next available market quotations. The results of such back testing and fair valued securities are reported quarterly to the Valuation Committee of the Board.
The use of fair valuation involves the risk that the values used by the Fund to price their investments may be higher or lower than the values used by other unaffiliated investment companies and investors to price the same investments.
B) INVESTMENT TRANSACTIONS AND INCOME Investment transactions are recorded as of the trade date. The Fund determines the gain or loss realized from investment transactions by using an identified cost basis method. Interest income, if any, is recognized on an accrual basis and includes amortization of premiums and accretion of discounts using the effective yield method. The interest rates reflected in the Schedule of Investments represent the 7-day yield for money market funds. Dividend income is recognized on the ex-dividend date. Dividends from foreign securities are recorded on the ex-dividend date, or as soon as the information is available.
C) EXPENSES The Fund is charged for those expenses that are directly attributable to the Fund. Expenses incurred which do not specifically relate to the Fund are allocated among all funds in the Trust in proportion to each fund’s relative net assets. Expenses included in the accompanying financial statements reflect the expenses of the Fund and do not include any expenses associated with the Underlying Funds.
D) DISTRIBUTIONS TO SHAREHOLDERS Distributions of dividends from net investment income, if any, are declared and paid quarterly.
Distributions of net realized capital gains, if any, are declared and paid at least annually. Distributions to shareholders are recorded on the ex-dividend date.
Income dividends and capital gains distributions are determined in accordance with federal income tax regulations. Such amounts may differ from income and capital gains recorded in accordance with U.S. GAAP. Accordingly, the Fund may periodically make reclassifications among certain capital accounts to reflect differences between financial reporting and federal income tax basis distributions. The reclassifications are reported in order to reflect the tax treatment for certain permanent differences that exist between income tax regulations and U.S. GAAP. These reclassifications may relate to net operating losses, expired capital loss carryforwards, and gain or loss on in-kind transactions. These reclassifications have no impact on the total net assets or the net asset values per share of the Fund. At March 31, 2014, the Fund did not have any such reclassifications.
E) FEDERAL INCOME TAXES No provision for federal income taxes has been made since the Fund’s policy is to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute, each year, substantially all of its taxable income and capital gains to its shareholders.
The Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated the eight-year limit on the use of capital loss carryforwards that arise in taxable years beginning after its enactment date of December 22, 2010. The changes became effective for the Fund for the four month period ended March 31, 2012. Consequently, capital losses incurred by the Fund in taxable years beginning with the taxable period ended March 31, 2012 can be carried forward for an unlimited period. However, capital losses incurred by the Fund in taxable years beginning before the taxable period ended March 31, 2012 with an expiration date may not be used to offset capital gains until all net capital losses incurred in taxable years beginning with the taxable period ended March 31, 2012 without an expiration date have been utilized. As a result, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The Fund’s ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
At March 31, 2014, the capital loss carryforward for U.S. federal income tax purposes and its year of expiration was as follows:
Amounts in thousands | MARCH 31, 2017 | |||
Global Tactical Asset Allocation | $3,511 |
The Fund may offset future capital gains with this capital loss carryforward.
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GLOBAL TACTICAL ASSET ALLOCATION FUND
SEPTEMBER 30, 2014 (UNAUDITED) |
At March 31, 2014, the tax components of undistributed net investment income, undistributed realized gains and unrealized gains were as follows:
UNDISTRIBUTED | ||||||||||||
Amounts in thousands | ORDINARY INCOME* | LONG-TERM CAPITAL GAINS | UNREALIZED GAINS | |||||||||
Global Tactical Asset Allocation | $13 | $ — | $8,402 |
* | Ordinary income includes short-term capital gains, if any. |
The tax character of distributions paid during the fiscal year ended March 31, 2014, was as follows:
DISTRIBUTIONS FROM | ||||||||
Amounts in thousands | ORDINARY INCOME* | LONG-TERM CAPITAL GAINS | ||||||
Global Tactical Asset Allocation | $1,367 | $ — |
* | Ordinary income includes short-term capital gains, if any. |
The tax character of distributions paid during the fiscal year ended March 31, 2013, was as follows:
DISTRIBUTIONS FROM | ||||||||
Amounts in thousands | ORDINARY INCOME* | LONG-TERM CAPITAL GAINS | ||||||
Global Tactical Asset Allocation | $953 | $ — |
* | Ordinary income includes short-term capital gains, if any. |
As of March 31, 2014, the Fund had no uncertain tax positions that would require financial statement recognition or disclosure. The Fund’s federal tax returns filed for the fiscal year ended November 30, 2011, the four month period ended March 31, 2012 and the fiscal year ended March 31, 2013 remain subject to examination by the Internal Revenue Service. Interest or penalties incurred, if any, on future unknown, uncertain tax positions taken by the Fund will be recorded as Interest expense on the Statement of Operations.
3. SERVICE PLAN
The Trust has adopted a Service Plan pursuant to which the Trust may enter into agreements with Northern Trust, its affiliates or other institutions (“Service Organizations”) under which the Service Organizations agree to provide certain administrative support services and, in some cases, personal and account maintenance services for their customers, whom are beneficial owners of shares of the Fund. As compensation for services provided pursuant to the Service Plan, the Service Organizations receive a fee at an annual rate of up to 0.25 percent of the average daily net assets of the Fund beneficially owned by their customers. These expenses are included in the Statement of Operations under Shareholder servicing fees for the six months ended September 30, 2014. There were no shareholder servicing fees paid to Northern Trust or its affiliates during the six months ended September 30, 2014.
4. BANK BORROWINGS
The Trust entered into a $150,000,000 senior unsecured revolving credit facility on November 25, 2013, which is administered by JPMorgan Chase Bank, N.A., for liquidity and other purposes (the “Credit Facility”). The interest rate charged under the Credit Facility is equal to the sum of (i) the Federal Funds Rate plus (ii) if the one month London Interbank Offered Rate (“LIBOR”) on the date of borrowing exceeds such Federal Funds Rate, the amount by which it so exceeds, plus (iii) 1.00 percent. In addition, there is an annual commitment fee of 0.07 percent on the unused portion of the credit line under the Credit Facility, payable quarterly in arrears, which is included in Other expenses on the Statement of Operations.
At a meeting held on November 20, 2014, the Board approved an agreement that terminated, replaced and restated the Credit Facility (as so terminated, replaced and restated, the “New Credit Facility”). The New Credit Facility is in the amount of $250,000,000. The interest rate charged under the New Credit Facility is the same as it was for the Credit Facility. In addition, there is an annual commitment fee of 0.08 percent on the unused portion of the credit line under the New Credit Facility, payable quarterly in arrears. The New Credit Facility is anticipated to go into effect on November 24, 2014 and will expire on November 23, 2015, unless renewed.
At September 30, 2014, the Fund did not have any outstanding borrowings.
5. MANAGEMENT AND OTHER AGREEMENTS
Shareholders of the Fund have approved a new management agreement, effective June 30, 2014, between the Fund and NTI (the “Management Agreement”), to provide the Fund with investment advisory and administration services under a single agreement and fee structure. As compensation for advisory and administration services and the assumption of related expenses, NTI is entitled to a management fee, computed daily and payable monthly, at the annual rate set forth in the first table below (expressed as a percentage of the Fund’s average daily net assets). Prior to June 30, 2014, as compensation for advisory services and the assumption of related expenses, NTI was entitled to an advisory fee, computed daily and payable monthly, at the annual rate set forth in the second table below (expressed as a percentage of the Fund’s average daily net assets.) Prior to June 30, 2014, NTI, as administrator, was also entitled to an administration fee from the Funds at the annual rate of 0.15% of the average daily net assets of the Fund.
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NOTES TO THE FINANCIAL STATEMENTS continued
NTI has contractually agreed to reimburse a portion of the operating expenses of the Fund (other than acquired fund fees and expenses, the Fund’s proportionate share of the increase in compensation paid to each disinterested Trustee, expenses related to third-party consultants engaged by the Board of Trustees of the Trust, membership dues paid to the Investment Company Institute and Mutual Fund Directors Forum, and extraordinary expenses and interest) as shown on the accompanying Statement of Operations, to adhere to the expense limitations set forth below. The amount of the reimbursement is included in Less expenses reimbursed by investment adviser as a reduction to Total Expenses in the Statement of Operations.
At September 30, 2014, the annual advisory fees and contractual expense limitations expressed as a percentage of average daily net assets of the Fund were as follows:
CONTRACTUAL | ||||||||
Fund | ANNUAL MANAGEMENT FEES | EXPENSE LIMITATIONS | ||||||
Global Tactical Asset Allocation | 0.23 | % | 0.25 | % |
Prior to June 30, 2014, the annual advisory fee for the Fund was based on the annual rate set forth in the table below. There was no change to the contractual expense limitations described above.
ANNUAL ADVISORY FEE | LESS CONTRACTUAL WAIVER | ADVISORY FEE AFTER WAIVER | ||||||||||
Global Tactical Asset Allocation | 0.25 | % | 0.10 | % | 0.15 | % |
The contractual reimbursement arrangement described in the first table above is expected to continue until at least July 31, 2015. The contractual reimbursement arrangement will continue automatically for periods of one year (each such one year period, a “Renewal Year”). The arrangement may be terminated, as to any succeeding Renewal Year, by NTI or the Fund upon 60 days’ written notice prior to the end of the current Renewal Year. The Board may terminate the contractual arrangement at any time with respect to the Fund if it determines that it is in the best interest of the Fund and its shareholders.
Effective June 30, 2014, as compensation for the services rendered as transfer agent, including the assumption by Northern Trust of the expenses related thereto, Northern Trust receives a fee, computed daily and payable monthly, at an annual rate of 0.015 percent of the average daily net assets outstanding for the Fund. Prior to June 30, 2014, Northern Trust received transfer agent fees at an annual rate of 0.10 percent of the average daily net assets, accrued daily and payable monthly. Transfer agent fees are reflected on the Statement of Operations.
NTI also has a sub-administration agreement with Northern Trust, pursuant to which Northern Trust performs certain administrative services for the Fund. NTI pays Northern Trust for its sub-administration services out of NTI’s management fees. Prior to June 30, 2014, these sub-administration services were paid out of NTI’s administration fees.
For compensation as custodian, Northern Trust receives an amount based on a pre-determined schedule of charges approved by the Board. The Fund has entered into an expense off-set arrangement with the custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Fund’s custodian expenses. Custodian credits, if any, are reflected as Less custodian credits in the Fund’s Statement of Operations.
Northern Funds Distributors, LLC, the distributor for the Fund, received no compensation from the Fund under its distribution agreement. However, it received compensation from NTI for its services as distributor pursuant to a separate letter agreement between it and NTI.
Certain officers of the Trust are also officers of Northern Trust and NTI. All officers serve without compensation from the Fund. The Trust provided a deferred compensation plan for its Trustees who are not officers of Northern Trust or NTI. Prior to August 22, 2013, under the deferred compensation plan, Trustees may have elected to defer all or a portion of their compensation. Effective August 22, 2013, the Trustees may no longer defer their compensation. Any amounts deferred and invested under the plan shall remain invested pursuant to the terms of the plan. Each Trustee’s account shall be deemed to be invested in shares of the Diversified Assets Portfolio of Northern Institutional Funds and/or the Fund and/or, at the discretion of the Trust, another money market fund selected by the Trust that complies with the provisions of Rule 2a-7 under the 1940 Act or one or more short-term fixed-income instruments selected by the Trust that are “eligible securities” as defined by that rule. The net investment income, gains and losses achieved by such deemed investment shall be credited to the Trustee’s account as provided in the plan.
6. INVESTMENT IN NORTHERN INSTITUTIONAL FUNDS-DIVERSIFIED ASSETS PORTFOLIO
Pursuant to an exemptive order issued by the Securities and Exchange Commission (“SEC”), the Fund invests its uninvested cash in a money market fund advised by NTI or its affiliates. Accordingly, the Fund bears indirectly a proportionate share of the money market fund’s operating expenses. These operating expenses include the management, transfer agency and custody fees that the money market fund pays to NTI and/or its affiliates. The Fund currently invests its uninvested cash in the Diversified
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SEPTEMBER 30, 2014 (UNAUDITED) |
Assets Portfolio of Northern Institutional Funds. The aggregate annual rate of management, transfer agency and custody fees payable to NTI and/or its affiliates on any assets invested in the Diversified Assets Portfolio is 0.35 percent of average daily net assets. However, pursuant to the exemptive order, NTI will reimburse the Fund for advisory fees otherwise payable by the Fund on any assets invested in the Diversified Assets Portfolio. This reimbursement is included in Less expenses reimbursed by investment adviser as a reduction to Total Expenses in the Statement of Operations. This reimbursement’s impact on the Fund’s net expense and net investment income ratios is included in the Fund’s Financial Highlights. The exemptive order requires the Fund’s Board to determine before a vote on the Management Agreement that the advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds are not for duplicative services.
7. INVESTMENT TRANSACTIONS
For the six months ended September 30, 2014, the aggregate costs of purchases and proceeds from sales of securities (excluding short-term investments) for the Fund were as follows:
PURCHASES | SALES | |||||||||||||||
Amounts in thousands | U.S. GOVERNMENT | OTHER | U.S. GOVERNMENT | OTHER | ||||||||||||
Global Tactical Asset Allocation | $ — | $9,863 | $ — | $10,606 |
The difference between book basis and tax basis net unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
At September 30, 2014, for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation, net unrealized appreciation on investments (including the effects of foreign currency translation) and the cost basis of securities were as follows:
Amounts in thousands | UNREALIZED APPRECIATION | UNREALIZED DEPRECIATION | NET APPRECIATION | COST BASIS OF SECURITIES | ||||||||||||
Global Tactical Asset Allocation | $8,041 | $ | (385) | $7,656 | $72,650 |
8. CAPITAL SHARE TRANSACTIONS
Transactions in capital shares for the six months ended September 30, 2014, were as follows:
Amounts in thousands | SHARES SOLD | PROCEEDS FROM SHARES SOLD | SHARES FROM REINVESTED DIVIDENDS | REINVESTMENT OF DIVIDENDS | SHARES REDEEMED | PAYMENTS FOR SHARES REDEEMED | NET DECREASE IN SHARES | NET DECREASE IN NET ASSETS | ||||||||||||||||||||||||
Shares | 845 | $ | 10,480 | 26 | $ | 331 | (975 | ) | $ | (12,175 | ) | (104 | ) | $ | (1,364 | ) |
Transactions in capital shares for the fiscal year ended March 31, 2014, were as follows:
Amounts in thousands | SHARES SOLD | PROCEEDS FROM SHARES SOLD | SHARES FROM REINVESTED DIVIDENDS | REINVESTMENT OF DIVIDENDS | SHARES REDEEMED | PAYMENTS FOR SHARES REDEEMED | NET INCREASE IN SHARES | NET INCREASE IN NET ASSETS | ||||||||||||||||||||||||
Shares | 2,270 | $ | 26,574 | 93 | $ | 1,088 | (1,291 | ) | $ | (15,105 | ) | 1,072 | $ | 12,557 |
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GLOBAL TACTICAL ASSET ALLOCATION FUND
NOTES TO THE FINANCIAL STATEMENTS continued | SEPTEMBER 30, 2014 (UNAUDITED) |
9. AFFILIATED PORTFOLIOS
Transactions in affiliated portfolios for the six months ended September 30, 2014, were as follows:
Amounts in thousands | VALUE, BEGINNING OF PERIOD | PURCHASES | SALES PROCEEDS | NET REALIZED GAINS (LOSSES) | DIVIDEND INCOME | VALUE, END OF PERIOD | ||||||||||||||||||
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund | $ | 3,209 | $ | 176 | $ | (52 | ) | $ | (2 | ) | $ | 39 | $ | 3,305 | ||||||||||
FlexShares Morningstar Developed Markets ex-U.S. Factor Tilt Index Fund | 16,348 | 1,251 | (1,261 | ) | 183 | — | 15,878 | |||||||||||||||||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | 4,978 | — | (497 | ) | 47 | — | 4,628 | |||||||||||||||||
FlexShares Morningstar Global Upstream Natural Resources Index Fund | 1,638 | — | (55 | ) | 3 | — | 1,557 | |||||||||||||||||
FlexShares Morningstar U.S. Market Factor Tilt Index Fund | 22,477 | 1,976 | (2,457 | ) | 550 | — | 22,463 | |||||||||||||||||
FlexShares STOXX Global Broad Infrastructure Index Fund | 2,435 | — | (108 | ) | 10 | 49 | 2,437 | |||||||||||||||||
Northern Funds — Bond Index Fund | 8,490 | 5,033 | (691 | ) | (29 | ) | 138 | 12,879 | ||||||||||||||||
Northern Funds — Global Real Estate Index Fund | 2,422 | 30 | (127 | ) | (3 | ) | 37 | 2,360 | ||||||||||||||||
Northern Funds — High Yield Fixed Income Fund | 10,545 | 736 | (425 | ) | (13 | ) | 315 | 10,595 | ||||||||||||||||
Northern Funds — Short Bond Fund | 8,501 | 661 | (4,933 | ) | (30 | ) | 49 | 4,204 | ||||||||||||||||
Northern Institutional Funds — Diversified Assets Portfolio | 536 | 6,659 | (7,195 | ) | — | — | — | |||||||||||||||||
$ | 81,579 | $ | 16,522 | $ | (17,801 | ) | $ | 716 | $ | 627 | $ | 80,306 |
10. INDEMNIFICATIONS AND WARRANTIES
In the ordinary course of its business, the Fund may enter into contracts or agreements that contain indemnifications or warranties. Future events could occur that lead to the execution of these provisions against the Fund. The maximum exposure to the Fund under these provisions is unknown, as this would involve future claims that have not yet occurred. However, the Fund has not had prior claims or losses pursuant to these contracts and believe the risk of loss to be remote.
11. SUBSEQUENT EVENTS
Management has evaluated subsequent events for the Fund through the date the financial statements were issued. There are no recognized or non-recognized subsequent events relevant for financial statement disclosure.
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GLOBAL TACTICAL ASSET ALLOCATION FUND
SEPTEMBER 30, 2014 (UNAUDITED) |
At a reconvened Special Joint Meeting of Shareholders of Northern Funds, including the Northern Multi-Manager Funds, and Northern Institutional Funds held on June 23, 2014, at the office of Northern Trust Investments, Inc. 50 South LaSalle Street, Chicago, Illinois, the following matter was voted upon by the shareholders of Northern Funds (the resulting votes are presented below):
To approve a change to the fundamental investment objectives of the Fund to non-fundamental, which would permit the Trustees of the Trust, instead of shareholders, to approve a change in the objective.
FUND | FOR | AGAINST | ABSTAIN | BROKER NON-VOTE | ||||||||||||
Global Tactical Asset Allocation | 3,316,043 | 261,423 | 198,635 | 1,829,626 |
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GLOBAL TACTICAL ASSET ALLOCATION FUND
FUND EXPENSES | SEPTEMBER 30, 2014 (UNAUDITED) |
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, if any, and (2) ongoing costs, including advisory fees and other fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, April 1, 2014 through September 30, 2014.
ACTUAL EXPENSES
The first line of the tables below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid 4/1/14 - 9/30/14” to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the tables below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratios and an assumed rate of return of 5 percent per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5 percent hypothetical example with the 5 percent hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads), redemption fees, or exchange fees, but shareholders of other funds may incur such costs. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. The information does not reflect reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds which may result in different expense ratios in the Financial Highlights.
GLOBAL TACTICAL ASSET ALLOCATION
EXPENSE RATIO | BEGINNING ACCOUNT VALUE 4/1/14 | ENDING ACCOUNT VALUE 9/30/14 | EXPENSES PAID* 4/1/14 - 9/30/14 | |||||||||||||
Actual | 0.26 | % | $ | 1,000.00 | $ | 1,004.80 | $ | 1.31 | ||||||||
Hypothetical** | 0.26 | % | $ | 1,000.00 | $ | 1,023.76 | $ | 1.32 |
* | Expenses are calculated using the Fund’s annualized expense ratios, which represent ongoing expenses as a percentage of net assets for the six months ended September 30, 2014. Expenses are calculated by multiplying the annualized expense ratio by the average account value of the period; then multiplying the result by the number of days in the most recent fiscal half year (183); and then dividing that result by the number of days in the current fiscal year (365). |
** | Hypothetical expenses are based on the Fund’s actual annualized expense ratios and an assumed rate of return of 5 percent per year before expenses. |
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GLOBAL TACTICAL ASSET ALLOCATION FUND
PORTFOLIO HOLDINGS
Northern Funds files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the SEC’s Web site at sec.gov. You may also review and obtain copies at the SEC’s Public Reference Room in Washington, D.C. Information about the Public Reference Room may be obtained by calling 800-SEC-0330.
PROXY VOTING
Northern Funds’ Proxy Voting Policies and Procedures and the Fund’s portfolio securities voting record for the 12-month period ended June 30 are available upon request and without charge by visiting Northern Funds’ Web site at northernfunds.com or the SEC’s Web site at sec.gov or by calling the Northern Funds Center at 800-595-9111.
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Item 2. Code of Ethics.
Not applicable for this reporting period.
Item 3. Audit Committee Financial Expert.
Not applicable for this reporting period.
Item 4. Principal Accountant Fees and Services.
Not applicable for this reporting period.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) | The registrant has elected to include the schedule of investments in securities of unaffiliated issuers as part of the report to shareholders filed under Item 1 of this report on Form N-CSR. |
(b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
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Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees.
Item 11. Controls and Procedures.
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) are effective, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 as of a date within 90 days of the filing date of this report. |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Exhibits.
(a)(1) | Not applicable for the reporting period. |
(a)(2) | Exhibit 99.CERT: Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
(b) | Exhibit 99.906 CERT: Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Northern Funds
By | /s/ Lloyd A. Wennlund | |
Lloyd A. Wennlund, President | ||
(Principal Executive Officer) | ||
Date: | December 3, 2014 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By | /s/ Lloyd A. Wennlund | |
Lloyd A. Wennlund, President | ||
(Principal Executive Officer) | ||
Date: | December 3, 2014 | |
By | /s/ Randal Rein | |
Randal Rein, Treasurer | ||
(Principal Financial and Accounting Officer) | ||
Date: | December 3, 2014 |
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