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N O R T H E R N M O N E Y M A R K E T F U N D S

A N N UA L R E P O R T

M A RC H 31, 2 018

The U.S. bond market experiencedheadwinds in the 12-month period endedMarch 31, 2018 (the “Period”), but theBloomberg Barclays U.S. Aggregate BondIndex—a measure of performance fordomestic, investment-gradebonds—nonetheless posted a modestgain of 1.20% during the period endedMarch 31, 2018.

Bond market conditions were fairlystable for the majority of the Period, withU.S. Treasury yields trading in a tightrange through the middle of December.Although the U.S. Federal Reserve was inthe midst of an interest rate tighteningcycle, investors generally remainedconfident that a combination of moderategrowth and muted inflation would allowthe U.S. Federal Reserve to maintain agradual approach to raising interest rates.This backdrop began to change late in2017, however, when the passage of asweeping tax reform package in theUnited States prompted the markets tobegin factoring in faster than expectedgrowth. The wage component of theJanuary 2018 employment report showedan unexpected increase, sparking fearsthat core inflation may finally be set torise above the U.S. Federal Reserve’s 2%target level. As a result, the yield on the10-year Treasury note—which sat justabove 2.40% at the end of November2017—climbed as high as 2.94% inmid-February 2018. Yields subsequentlymoved lower in March 2018, but theearlier spike was sufficient to depress the

returns of interest rate-sensitive assets,including U.S. Treasuries, corporatebonds and municipal issues for the full12-month period ended March 31, 2018.

High-yield bonds performedsomewhat better than investment-gradeissues, reflecting their higher sensitivity toeconomic growth and below-averagecorrelation with the direction of interestrates. While rising interest rates caneventually take a toll on high yield bonds,tightening typically needs to occur over alonger period before there is ameaningfully negative effect on marketrate issuers’ ability to service their debt.The substantial decline in yield spreadsthat has taken place over the past twoyears has made high yield bonds moreexpensive, potentially dampening theirupside potential.

The direction of the U.S. FederalReserve policy remained a key wild cardfor the U.S. market as the Period drew toa close. Specifically, investors remainedfocused on determining how manyinterest rate hikes may be on tap for theremainder of 2018. The presence of a newChairman of the Board of Governors ofthe Federal Reserve System, JeromePowell, has added some uncertainty. Mr.Powell gave his first public address to theHouse Financial Services Committee inFebruary. His comments were optimistic,noting that “some of the headwinds theU.S. economy faced in previous yearshave turned into tailwinds.” Investorslargely viewed this as a sign of continuity

between Powell and his predecessor,Janet Yellen. Still, several factors are atwork in determining the extent to whichthe U.S. Federal Reserve will raiseinterest rates. On one hand, benigninflation, the possibility of a trade warand increased market volatility couldrestrain the U.S. Federal Reserve fromraising interest rates. Conversely, webelieve the U.S. Federal Reserve wouldrequire very healthy economicconditions—highlighted by fastergrowth, rising inflation and agreeableinvestor sentiment—to tighten moreaggressively.

While rising wages are indeedsomething to watch, we do not believethat this trend is signaling an upwardmarch in inflation. Generally, as long ashigher wages are paired withproductivity gains, corporate profitmargins can expand and the marketscan remain upbeat. We believe thiswould open the door for theU.S. Federal Reserve to continue raisinginterest rates gradually rather thantightening its policy more quickly inorder to combat accelerating inflation.We therefore believe that bonds canperform reasonably well during thecoming months as long as the economyremains in the “sweet spot” of slow,steady growth with moderate inflation.

Bob BrowneChief Investment OfficerNorthern Trust

A M E S SAG E F RO M

BO B B ROW N E

C H I E F I N V E S T M E N T O F F I C E R

M O N E Y M A R K E T F U N D S

T A B L E O F C O N T E N T S

2 PORTFOLIO MANAGEMENT COMMENTARY

6 STATEMENTS OF ASSETS AND LIABILITIES

7 STATEMENTS OF OPERATIONS

8 STATEMENTS OF CHANGES IN NET ASSETS

9 FINANCIAL HIGHLIGHTS

SCHEDULES OF INVESTMENTS

13 MONEY MARKET FUND

Ticker Symbol: NORXX

17 MUNICIPAL MONEY MARKET FUND

Ticker Symbol: NOMXX

28 U.S. GOVERNMENT MONEY MARKET FUND

Ticker Symbol: NOGXX

32 U.S. GOVERNMENT SELECT MONEY MARKET FUND

Ticker Symbol: NOSXX

36 NOTES TO THE FINANCIAL STATEMENTS

43 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

44 TAX AND DISTRIBUTION INFORMATION

45 FUND EXPENSES

46 TRUSTEES AND OFFICERS

50 INVESTMENT CONSIDERATIONS

52 FOR MORE INFORMATION

This report has been prepared for the generalinformation of Northern Funds shareholders. Itis not authorized for distribution toprospective investors unless accompanied orpreceded by a current Northern Fundssummary prospectus or prospectus, whichcontains more complete information about afund’s investment objectives, risks, fees andexpenses. Investors are reminded to read asummary prospectus or prospectus carefullybefore investing or sending money.

This report contains certain forward-lookingstatements about factors that may affect theperformance of the funds in the future. Thesestatements are based on Northern Funds’management predictions and expectationsconcerning certain future events, such asperformance of the economy as a whole and ofspecific industry sectors, changes in the levels ofinterest rates, the impact of developing worldevents, and other factors. Managementbelieves these forward-looking statements to bereasonable, although they are inherentlyuncertain and difficult to predict. Actual eventsmay cause adjustments in Northern Funds’management strategies from those currentlyexpected to be employed.

You could lose money by investing in theMoney Market Funds. Although each of theMoney Market Funds seeks to preserve thevalue of your investment at $1.00 per share,it cannot guarantee it will do so.

The Money Market Fund and the MunicipalMoney Market Fund may impose a fee uponthe sale of your shares or may temporarilysuspend your ability to sell shares if the Fund’sliquidity falls below required minimumsbecause of market conditions or other factors.

An investment in a Fund is not a deposit of abank and is not insured or guaranteed by theFederal Deposit Insurance Corporation(“FDIC”), any other government agency, orThe Northern Trust Company, its affiliates,subsidiaries or any other bank. The Funds’sponsor has no legal obligation to providefinancial support to the Funds, and you shouldnot expect that the sponsor will providefinancial support to the Funds at any time.

Northern Funds are distributed by Northern FundsDistributors, LLC, Three Canal Plaza, Suite 100,Portland, Maine 04101, not affiliated withNorthern Trust.

NOT FDIC INSURED

May lose value / No bank guarantee

NORTHERN FUNDS ANNUAL REPORT 1 MONEY MARKET FUNDS


M O N E Y M A R K E T F U N D (UNAUDITED)

PORTFOLIO MANAGEMENT COMMENTARYThe U.S. Federal Reserve implemented three incremental increases in its benchmark overnight lending rate over the 12 month periodended March 31, 2018, leaving the Federal funds target rate range at 1.50%-1.75% as of March 31, 2018. Despite an improving labormarket and passable economic growth, inflation remained below the U.S. Federal Reserve’s 2% target throughout the period. Never-theless, the U.S. Federal Reserve began its balance sheet normalization process in October of 2017, under which it will gradually reduceits bond portfolio, a process which is expected to put some upward pressure on interest rates. According to the U.S. Federal Reserve,after 12 months the planned tapering will have instituted the equivalent of a 25-basis-point rate hike. The longer-term outlook andfuture leadership of the U.S. Federal Reserve was uncertain for a period as there were multiple vacancies on the U.S. board. PresidentTrump chose not to renew Chair Yellen’s term and instead appointed Jerome Powell to lead the U.S. Federal Reserve. Mr. Powell’s firstmeeting as Chair was in March 2018, and it is anticipated that he will pursue a similar monetary policy path to Yellen’s.

The short end of the yield curve was orderly for most of the period. However, credit spreads widened aggressively late in the period inanticipation of both corporations repatriating cash in the wake of U.S. tax reform and a dramatic increase in U.S. Treasury issuance in2018. The market was prepared for higher rates in the short end given expectations for a March 2018 Federal funds hike, but ratesincreased much more than anticipated. Credit spreads were expected to begin tightening in April as investors have more cash to investand Treasury issuance begins to subside.

For its most recent fiscal year ended March 31, 2018, the Northern Money Market Fund posted a 1.10% return, compared with the0.85% return of its benchmark, iMoneyNet MFR AverageTM/First Tier Retail. As of March 31, 2018, the Fund’s 7-day current yield was1.60%. We continue to position the Fund conservatively, with a neutral duration strategy. Liquidity and principal preservation remainour primary objectives.

PORTFOLIO MANAGERS

JENNIFER GRECAWith Northern Trust since 2000

PETER YIWith Northern Trust since 2000

I N V E S T M E N T P E R F O R M A N C E

AVERAGE ANNUAL RETURNS for periods ended March 31, 2018

TOTAL RETURNFUND INCEPTION

(04/11/94) ONE YEAR FIVE YEAR TEN YEAR 7-DAY YIELD

MONEY MARKET FUND 1.10% 0.32% 0.28%1.60%IMONEYNET MFR AVERAGETM/

FIRST TIER RETAIL 0.85 0.24 0.33

Fund performance quoted represents past performance and does not guarantee future results.Investment return will fluctuate so that shares, when redeemed, may be worth more or less than theiroriginal cost. Current performance may be lower or higher than that shown here. 7-Day Yield refers toincome generated over the 7-day period ended March 31, 2018. Past performance may reflectvoluntary and contractual expense reimbursements. In their absence, performance would be reduced.Performance data current to the most recent month-end is available at northerntrust.com/funds.

The table does not reflect the deduction of taxes that a shareholder would pay on Funddistributions or the redemption of Fund shares.

M A T U R I T Y A N A L Y S I S

At March 31, 2018, the maturity analysis for the Money Market Fund as a percentage of investments was:

MATURITY %We compare our Funds to the iMoneyNet Money Fund

Report Averages, which are composites of professionally

managed money market investments with similar

investment objectives.

Fund portfolio composition is subject to change.

Information about Investment Considerations can be

found on page 50.

OVERNIGHT (ONE BUSINESS DAY) 22.7%2 - 15 DAYS 35.716 - 30 DAYS 10.531 - 60 DAYS 12.061 - 97 DAYS 16.598 - 180 DAYS 0.6181 - 270 DAYS 2.0

You could lose money by investing inthe Fund. Although the Fund seeks topreserve the value of your investmentat $1.00 per share, it cannotguarantee it will do so. The Fund mayimpose a fee upon sale of your sharesor may temporarily suspend yourability to sell shares if the Fund’sliquidity falls below requiredminimums because of marketconditions or other factors.

An investment in the Fund is not adeposit of a bank and is not insured orguaranteed by the Federal DepositInsurance Corporation (“FDIC”), anyother government agency, or TheNorthern Trust Company, its affiliates,subsidiaries or any other bank. TheFund’s sponsor has no legal obligationto provide financial support to theFund and you should not expect thatthe sponsor will provide financialsupport to the Fund at any time.

MONEY MARKET FUNDS 2 NORTHERN FUNDS ANNUAL REPORT


M U N I C I P A L M O N E Y M A R K E T F U N D (UNAUDITED)

PORTFOLIO MANAGEMENT COMMENTARY

For the 12-month period ended March 31, 2018, the Municipal Money Market Fund offered investors tax-exempt returns, a stable netasset value and liquidity. Major themes affecting the short duration municipal markets during the period included higher money mar-ket yields and U.S. tax reform legislation.

The U.S. Federal Reserve implemented three 25-basis-point increases in its benchmark overnight lending rate over the period, leavingthe target range for the federal funds rate at 1.50%-1.75% as of March 31, 2018. The U.S. Federal Reserve’s aggregate 75-basis-pointincrease in policy rates pushed short duration municipal yields higher as well. Short duration municipal yields were also affected byuncertainty created by the proposed U.S. federal tax changes. The potential elimination of several types of municipal issuanceprompted some municipal issuers to bring forward offerings of bonds originally scheduled for early 2018. This caused a dramaticincrease in municipal issuance during the last quarter of 2017, pushing municipal yields higher.

For the 12-month period, the Fund provided a total return of 0.79%, compared to 0.50% for its benchmark, the iMoneyNet MFRAverageTM/Tax-Free Retail. Throughout the period, the Fund was positioned to weather a rising rate environment. The managerinvested new cash balances primarily in municipal variable rate demand notes, or VRDNs. The interest rate of VRDNs is adjusted dailyor weekly to reflect current market interest rates. These issues offer liquidity and a strong credit profile, and can be tendered at par. Inthe run-up to U.S. federal tax reform, investors saw tax-free VRDN yields set at levels that exceeded 30-day LIBOR. Our holdings ofmunicipal VRDNs exceeded 90% of Fund assets throughout the period. The Fund’s weighted average maturity was maintained between10 and 15 days during the period, essentially a neutral stance relative to the iMoneyNet Municipal Retail benchmark.

PORTFOLIO MANAGER

KURT STOEBERWith Northern Trust since 2000





MUNICIPAL MONEY MARKET FUND 0.79% 0.27% 0.28%1.16%IMONEYNET MFR AVERAGETM/

TAX-FREE RETAIL 0.50 0.16 0.23

Fund performance quoted represents past performance and does not guarantee future results. Investmentreturn will fluctuate so that shares, when redeemed, may be worth more or less than their original cost.Current performance may be lower or higher than that shown here. 7-Day Yield refers to income generatedover the 7-day period ended March 31, 2018. Performance reflects voluntary and contractual expensereimbursements in effect. In their absence, performance would be reduced. Performance data current to themost recent month-end is available at northernfunds.com.



At March 31, 2018, the maturity analysis for the Municipal Money Market Fund as a percentage ofinvestments was:

MATURITY % We compare our Funds to the iMoneyNet Money Fund




Income from the Fund may be subject to federalalternative minimum tax (AMT) and state and local taxes.


Information about Investment Considerations can befound on page 50.

OVERNIGHT (ONE BUSINESS DAY) 36.7%2 - 15 DAYS 59.431 - 60 DAYS 1.161 - 97 DAYS 0.798 - 180 DAYS 2.0181 - 270 DAYS 0.1

You could lose money by investing inthe Fund. Although the Fund seeks topreserve the value of your investmentat $1.00 per share, it cannotguarantee it will do so. The Fund mayimpose a fee upon sale of your sharesor may temporarily suspend yourability to sell shares if the Fund’sliquidity falls below requiredminimums because of marketconditions or other factors.

An investment in the Fund is not adeposit of a bank and is not insured orguaranteed by the Federal DepositInsurance Corporation (“FDIC”), anyother government agency, or TheNorthern Trust Company, its affiliates,subsidiaries or any other bank. TheFund’s sponsor has no legal obligationto provide financial support to the Fund,and you should not expect that thesponsor will provide financial support tothe Fund at any time.



U . S . G O V E R N M E N T M O N E Y M A R K E T F U N D (UNAUDITED)


Higher-risk asset classes finished the 12-month period ended March 31, 2018 with gains, although volatility returned to global marketsin the first quarter of 2018 when U.S. stocks briefly dipped into correction territory. Bond yields also moved higher, particularly forshort-term issues, and the yield curve flattened meaningfully. The Federal Open Market Committee (“FOMC”) raised the target rangefor the federal funds rate by a quarter point three times during the period, in June 2017, December 2017 and March 2018. The FOMC,at its September 2017 meeting, also announced that it would begin to reduce the size of its balance sheet. Economic data released dur-ing the second half of 2017 generally surprised to the upside and painted a picture of a strong labor market in the United States.

Money market rates moved higher during the period as the FOMC has prepared the markets well in advance of each rate hike. TheU.S. Federal Reserve’s decision to begin reducing the size of its balance sheet had little immediate effect on the money markets, but itmay have more of an influence as monetary policy continues to normalize. In addition, the government increased U.S. Treasury billissuance late in the period — an important trend that we will continue to monitor closely through the remainder of 2018. Accordingly,we selectively rotated into longer-term securities to take advantage of steepness in the money market yield curve while maintaining astrong liquidity profile to accommodate any unexpected outflows.

The U.S. Government Money Market Fund posted a total return of 0.78% for the 12-month period ended March 31, 2018, comparedwith the 0.48% return of its benchmark, the iMoneyNet MFR AverageTM/Govt & Agencies Retail. As of March 31, 2018 the Fund’s 7-day current yield was 1.33%.

PORTFOLIO MANAGERS

DANIEL LAROCCOWith Northern Trust since 2008






U.S. GOVERNMENTMONEY MARKET FUND 0.78% 0.19% 0.21%

1.33%IMONEYNET MFR AVERAGETM/GOVT & AGENCIES RETAIL 0.48 0.11 0.21

Fund performance quoted represents past performance and does not guarantee future results.Investment return will fluctuate so that shares, when redeemed, may be worth more or less than theiroriginal cost. Current performance may be lower or higher than that shown here. 7-Day Yield refers toincome generated over the 7-day period ended March 31, 2018. Past performance may reflectvoluntary and contractual expense reimbursements. In their absence, performance would be reduced.Performance data current to the most recent month-end is available at northernfunds.com.

The table does not reflect the deduction of taxes that a shareholder would pay on Fund dis-tributions or the redemption of Fund shares.


At March 31, 2018, the maturity analysis for the U.S. Government Money Market Fund as a percentage ofinvestments was:

MATURITY % We compare the Fund to the iMoneyNet Money Fund






found on page 50.

OVERNIGHT (ONE BUSINESS DAY) 35.2%

2 - 15 DAYS 17.2

16 - 30 DAYS 17.7

31 - 60 DAYS 6.7

61 - 97 DAYS 12.7

98 - 180 DAYS 5.2

181 - 270 DAYS 4.9

271 - 366 DAYS 0.4

You could lose money by investing inthe Fund. Although the Fund seeks topreserve the value of your investment at$1.00 per share, it cannot guarantee itwill do so. An investment in the Fund isnot a deposit of a bank and is notinsured or guaranteed by the FederalDeposit Insurance Corporation(“FDIC”), any other governmentagency, or The Northern TrustCompany, its affiliates, subsidiaries orany other bank. The Fund’s sponsor hasno legal obligation to provide financialsupport to the Fund, and you should notexpect that the sponsor will providefinancial support to the Fund at any time.



U . S . G O V E R N M E N T S E L E C T M O N E Y M A R K E T F U N D (UNAUDITED)


Higher-risk asset classes finished the 12-month period ended March 31, 2018 with gains, although volatility returned to global marketsin the first quarter of 2018 when U.S. stocks briefly dipped into correction territory. Bond yields also moved higher, particularly forshort-term issues, and the yield curve flattened meaningfully. The Federal Open Market Committee (“FOMC”) raised the target rangefor the federal funds rate by a quarter point three times during the period, in June 2017, December 2017 and March 2018. The FOMC,at its September 2017 meeting, also announced that it would begin to reduce the size of its balance sheet. Economic data released dur-ing the second half of 2017 generally surprised to the upside and painted a picture of a strong labor market in the United States.

Money market rates moved higher during the period as the FOMC has prepared the markets well in advance of each rate hike. The U.S.Federal Reserve’s decision to begin reducing the size of its balance sheet had little immediate effect on the money markets, but it mayhave more of an influence as monetary policy continues to normalize. In addition, the government increased U.S. Treasury bill issuancelate in the period — an important trend that we will continue to monitor closely through the remainder of 2018. Accordingly, weselectively rotated into longer-term securities to take advantage of steepness in the money market yield curve while maintaining astrong liquidity profile to accommodate any unexpected outflows.

The U.S. Government Select Money Market Fund posted a total return of 0.78% for the 12-month period ended March 31, 2018,compared with the 0.48% return of its benchmark, the iMoneyNet MFR AverageTM/Govt & Agencies Retail. As of March 31, 2018 theFund’s 7-day current yield was 1.33%.

PORTFOLIO MANAGERS

DANIEL LAROCCOWith Northern Trust since 2008






U.S. GOVERNMENT SELECTMONEY MARKET FUND 0.78% 0.19% 0.20%

1.33%IMONEYNET MFR AVERAGETM/GOVT & AGENCIES RETAIL 0.48 0.11 0.21

Fund performance quoted represents past performance and does not guarantee future results. Investmentreturn will fluctuate so that shares, when redeemed, may be worth more or less than their original cost.Current performance may be lower or higher than that shown here. 7-Day Yield refers to incomegenerated over the 7-day period ended March 31, 2018. Past performance may reflect voluntary andcontractual expense reimbursements. In their absence, performance would be reduced. Performance datacurrent to the most recent month-end is available at northernfunds.com.



At March 31, 2018, the maturity analysis for the U.S. Government Select Money Market Fund as apercentage of investments was:

MATURITY % We compare the Fund to the iMoneyNet Money Fund






found on page 50.

OVERNIGHT (ONE BUSINESS DAY) 42.7%

2 - 15 DAYS 4.7

16 - 30 DAYS 21.1

31 - 60 DAYS 10.9

61 - 97 DAYS 10.5

98 - 180 DAYS 4.8

181 - 270 DAYS 4.9

271 - 366 DAYS 0.4

You could lose money by investing inthe Fund. Although the Fund seeks topreserve the value of your investmentat $1.00 per share, it cannotguarantee it will do so. An investmentin the Fund is not a deposit of a bankand is not insured or guaranteed bythe Federal Deposit InsuranceCorporation (“FDIC”), any othergovernment agency, or The NorthernTrust Company, its affiliates,subsidiaries or any other bank. TheFund’s sponsor has no legal obligationto provide financial support to theFund, and you should not expect thatthe sponsor will provide financialsupport to the Fund at any time.


Amounts in thousands, except per share dataMONEY

MARKET FUND

MUNICIPALMONEY

MARKET FUND

U.S. GOVERNMENTMONEY

MARKET FUND

U.S. GOVERNMENTSELECT MONEYMARKET FUND

ASSETS:

Investments, at amortized cost, which approximates fair value $349,041 $876,074 $9,497,795 $2,495,566

Repurchase agreements, at cost, which approximates fair value 6,516 — 6,707,134 1,330,000

Cash — 109 32,958 —

Due from custodian 200 700 — —

Interest income receivable 289 1,459 12,585 2,666

Receivable for securities sold — 215 — —

Receivable for fund shares sold 3 — 137 3,684

Receivable from affiliates for expense reimbursements — 1 48 12

Prepaid and other assets 9 6 28 4

Total Assets 356,058 878,564 16,250,685 3,831,932LIABILITIES:

Cash overdraft 257 — — 4,599

Due to custodian — 300 — —

Payable for securities purchased 19,235 495 157,199 45,037

Payable for fund shares redeemed — 57 79,944 —

Distributions payable to shareholders 413 701 16,305 3,887

Payable to affiliates:

Management fees 35 67 1,013 240

Custody fees 5 4 45 13

Transfer agent fees 1 3 46 11

Trustee fees 2 — 18 18

Accrued other liabilities 91 41 196 80

Total Liabilities 20,039 1,668 254,766 53,885Net Assets $336,019 $876,896 $15,995,919 $3,778,047ANALYSIS OF NET ASSETS:

Capital stock $336,064 $876,960 $15,995,879 $3,778,050

Accumulated undistributed net investment income (loss) (45) 1 (9) (13)

Accumulated undistributed net realized gain (loss) — (65) 49 10

Net Assets $336,019 $876,896 $15,995,919 $3,778,047Shares Outstanding ($.0001 par value, unlimited

authorization) 336,022 876,895 15,995,912 3,778,088Net Asset Value, Redemption and Offering Price Per Share $1.00 $1.00 $1.00 $1.00


S TAT E M E N T S O F A S S E T S A N D L I A B I L I T I E S MARCH 31, 2018

See Notes to the Financial Statements.


Amounts in thousandsMONEY

MARKET FUND

MUNICIPALMONEY

MARKET FUND


MARKET FUND


INVESTMENT INCOME:

Interest income $2,811 $5,144 $175,531 $39,605

Income from affiliates (Note 6) — — 120 —

Total Investment Income 2,811 5,144 175,651 39,605EXPENSES:

Management fees 674 1,651 51,464 11,404

Custody fees 57 69 1,672 402

Transfer agent fees 30 75 2,339 518

Registration fees 27 21 34 39

Printing fees — — 244 83

Professional fees 38 38 200 84

Trustee fees 10 10 142 48

Other 38 35 155 61

Total Expenses 874 1,899 56,250 12,639

Less expenses voluntarily reimbursed by investment adviser (131) (657) — —

Less expenses contractually reimbursed by investment adviser (140) (117) (1,408) (466)

Less custodian credits (3) (19) (36) (2)

Net Expenses 600 1,106 54,806 12,171Net Investment Income 2,211 4,038 120,845 27,434NET REALIZED GAINS:

Net realized gains (losses) on:

Investments — — 49 9

Net Gains — — 49 9Net Increase in Net Assets Resulting from Operations $2,211 $4,038 $120,894 $27,443


S TAT E M E N T S O F O P E R AT I O N S FOR THE FISCAL YEAR ENDED MARCH 31, 2018



MONEYMARKET FUND

MUNICIPALMONEY

MARKET FUND


MARKET FUND


Amounts in thousands 2018 2017 2018 2017 2018 2017 2018 2017

OPERATIONS:

Net investment income $2,211 $7,032 $4,038 $2,759 $120,845 $15,398 $27,434 $5,258

Net realized gains (losses) — 978 — (65) 49 38 9 40

Net increase from payment by affiliate (Note 6) — 136 — 91 — — — —

Net Increase in Net Assets Resulting from Operations 2,211 8,146 4,038 2,785 120,894 15,436 27,443 5,298CAPITAL SHARE TRANSACTIONS:(1)

Net increase (decrease) in net assets resulting from capital sharetransactions 171,522 (7,397,266) 673,039 (5,456,159) (486,033) 13,122,151 497,010 (606,916)

Net Increase (Decrease) in Net Assets Resulting from CapitalShare Transactions 171,522 (7,397,266) 673,039 (5,456,159) (486,033) 13,122,151 497,010 (606,916)

DISTRIBUTIONS PAID:

From net investment income (2,320) (7,945) (4,037) (3,024) (120,883) (15,407) (27,473) (5,265)

From net realized gains — (71) — (622) — — — —

Total Distributions Paid (2,320) (8,016) (4,037) (3,646) (120,883) (15,407) (27,473) (5,265)Total Increase (Decrease) in Net Assets 171,413 (7,397,136) 673,040 (5,457,020) (486,022) 13,122,180 496,980 (606,883)NET ASSETS:

Beginning of year 164,606 7,561,742 203,856 5,660,876 16,481,941 3,359,761 3,281,067 3,887,950

End of year $336,019 $164,606 $876,896 $203,856 $15,995,919 $16,481,941 $3,778,047 $3,281,067Accumulated Undistributed Net Investment Income (Loss) $(45) $(46) $1 $— $(9) $(9) $(13) $(14)

(1) The number of shares approximates the dollar amount of transactions.


S TAT E M E N T S O F C H A N G E S I N N E T A S S E T S FOR THE FISCAL YEARS ENDED MARCH 31,



M O N E Y M A R K E T F U N D

Selected per share data 2018 2017 2016 2015 2014

Net Asset Value, Beginning of Year $1.00 $1.00 $1.00 $1.00 $1.00INCOME (LOSS) FROM INVESTMENT OPERATIONS:

Net investment income 0.01 —(1) —(1) —(1) —(1)

Net realized and unrealized gains (losses)(2) — — — — —

Net increase from payment by affiliate (Note 6) — —(3) —(4) — —

Total from Investment Operations 0.01 — — — —

LESS DISTRIBUTIONS PAID:

From net investment income (0.01) —(5) —(5) —(5) —(5)

From net realized gains — —(6) —(6) — —

Total Distributions Paid (0.01) — — — —

Net Asset Value, End of Year $1.00 $1.00 $1.00 $1.00 $1.00

Total Return(7) 1.10% 0.42% 0.05% 0.01% 0.01%SUPPLEMENTAL DATA AND RATIOS:

Net assets, in thousands, end of year $336,019 $164,606 $7,561,742 $8,844,593 $7,979,006

Ratio to average net assets of:

Expenses, net of reimbursements and credits(8) 0.29% 0.34% 0.26% 0.17% 0.18%

Expenses, before reimbursements and credits 0.43% 0.37% 0.36% 0.39% 0.48%

Net investment income, net of reimbursements and credits(8) 1.09% 0.22% 0.05% 0.01% 0.01%

Net investment income (loss), before reimbursements andcredits 0.95% 0.19% (0.05)% (0.21)% (0.29)%

(1) Per share amounts from net investment income were 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) The Fund received a cash contribution from Northern Trust Corporation, the parent company of NTI, of approximately $136,000. The voluntary cash contribution

represents less than $0.01 per share and had no effect on the Fund’s total return.(4) The Fund received a cash contribution from Northern Trust Corporation, the parent company of NTI, of approximately $8,190,000. The voluntary cash

contribution represents less than $0.01 per share and had no effect on the Fund’s total return.(5) Per share amounts from distributions paid from net investment income were less than $0.01 per share.(6) Per share amount from distributions paid from net realized gains was less than $0.01 per share.(7) Assumes investment at net asset value at the beginning of the year, reinvestment of all dividends and distributions, and a complete redemption of the investment at

net asset value at the end of the year.(8) The impact on Net Assets due to any custody credits is less than 0.005%.


F I N A N C I A L H I G H L I G H T S FOR THE FISCAL YEARS ENDED MARCH 31,



M U N I C I PA L M O N E Y M A R K E T F U N D




Net realized and unrealized gains (losses) — 0.01 —(2) —(2) —(2)

Net increase from payment by affiliate (Note 6) — —(3) — — —

Total from Investment Operations 0.01 0.01 — — —


From net investment income (0.01) (0.01) —(4) —(4) —(4)

From net realized gains — —(5) —(5) —(5) —

Total Distributions Paid (0.01) (0.01) — — —



Net assets, in thousands, end of year $876,896 $203,856 $5,660,876 $6,273,372 $6,427,560






(1) Per share amounts from net investment income were 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) The Fund received a cash contribution from Northern Trust Corporation, the parent company of NTI, of approximately $91,000. The voluntary cash contribution

represents less than $0.01 per share and had no effect on the Fund’s total return.(4) Per share amounts from distributions paid from net investment income were less than $0.01 per share.(5) Per share amount from distributions paid from net realized gains was less than $0.01 per share.(6) Assumes investment at net asset value at the beginning of the year, reinvestment of all dividends and distributions, and a complete redemption of the investment at



F I N A N C I A L H I G H L I G H T S c o n t i n u e d



U . S . G OV E R N M E N T M O N E Y M A R K E T F U N D











Net assets, in thousands, end of year $15,995,919 $16,481,941 $3,359,761 $1,763,668 $1,383,478






(1) Per share amounts from net investment income were 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 amounts from distributions paid from net investment income were less than $0.01 per share.(4) Assumes investment at net asset value at the beginning of the year, reinvestment of all dividends and distributions, and a complete redemption of the investment at


FOR THE FISCAL YEARS ENDED MARCH 31,



U . S . G OV E R N M E N T S E L E C T M O N E Y M A R K E T F U N D











Net assets, in thousands, end of year $3,778,047 $3,281,067 $3,887,950 $3,359,681 $3,727,033






(1) Per share amounts from net investment income were 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 amounts from distributions paid from net investment income were less than $0.01 per share.(4) Assumes investment at net asset value at the beginning of the year, reinvestment of all dividends and distributions, and a complete redemption of the investment at



F I N A N C I A L H I G H L I G H T S c o n t i n u e d FOR THE FISCAL YEARS ENDED MARCH 31,



PRINCIPALAMOUNT

(000S)VALUE(000S)

A B S C O M M E RC I A L PA P E R – 10 .1 %

ABS Other – 10.1%

Alpine Securitization LLC,

2.28%, 6/12/18(1) $3,000 $2,987

Bedford Row Funding Corp.,

(Floating, ICE LIBOR USD 3M +0.16%) 2.45%, 6/27/18(1) (2) 3,000 3,000

Bennington Stark Capital Co. LLC,

1.88%, 5/4/18 1,000 998

Collateralized Commercial Paper Co.LLC,

(Floating, ICE LIBOR USD 1M +0.20%) 2.01%, 4/18/18(3) 4,000 4,000

Concord Minutemen Capital Co. LLC,Class A,

1.88%, 5/10/18 2,000 1,996

Crown Point Capital Co. LLC,

2.28%, 6/14/18 4,000 3,981

Kells Funding LLC,

1.72%, 4/9/18(1) 4,000 3,998

Lexington Parker Capital Co. LLC,

2.03%, 4/23/18(1) 2,000 1,998

LMA Americas LLC,

1.83%, 5/9/18 2,000 1,996

Matchpoint Finance PLC,

2.18%, 6/4/18(1) 3,000 2,989

Ridgefield Funding Co. LLC,

1.81%, 4/3/18 3,900 3,900

2.36%, 6/20/18 2,000 1,990

33,833

Total ABS Commercial Paper

(Cost $33,833) 33,833

C E R T I F I C AT E S O F D E P O S I T – 2 8 . 6 %

Banking – 28.6%

Australia and New Zealand BankingGroup,


Bank of Montreal, Chicago Branch,




PRINCIPALAMOUNT

(000S)VALUE(000S)

C E R T I F I C AT E S O F D E P O S I T - 2 8 . 6 % c o n t i n u e d

Banking – 28.6% continued

2.10%, 6/1/18 $3,000 $3,000

Bank of Tokyo-Mitsubishi UFJ Ltd.,

1.74%, 4/16/18 4,000 4,000

BNP Paribas S.A., New York Branch,


Canadian Imperial Bank of Commerce,



Citibank N.A., New York Branch,

1.72%, 4/11/18 2,000 2,000


2.10%, 6/5/18 3,000 3,000

Cooperatieve Rabobank U.A., LondonBranch,


Cooperatieve Rabobank U.A., NewYork Branch,



Credit Suisse A.G., New York Branch,


Natixis S.A., New York Branch,

2.15%, 6/5/18 2,500 2,500

2.30%, 6/15/18 3,000 3,000

Oversea-Chinese Banking Corp. Ltd.,


2.00%, 5/22/18 2,500 2,500

Royal Bank of Canada, New YorkBranch,




Shizuoka Bank Ltd., New York Branch,

2.14%, 5/24/18 2,000 2,000

S C H E D U L E O F I N V E S T M E N T S

M O N E Y M A R K E T F U N D MARCH 31, 2018



PRINCIPALAMOUNT

(000S)VALUE(000S)

C E R T I F I C AT E S O F D E P O S I T - 2 8 . 6 % c o n t i n u e d


2.10%, 5/25/18 $3,000 $3,000

Societe Generale, New York Branch,

2.00%, 5/31/18 3,000 3,000

Sumitomo Mitsui Banking Corp., NewYork Branch,

2.05%, 5/23/18 4,000 4,000

Sumitomo Mitsui Trust Bank Ltd.,

1.80%, 4/13/18 2,000 2,000

Svenska Handelsbanken AB, New YorkBranch,


Toronto Dominion Bank, New YorkBranch,

1.75%, 10/26/18 2,000 2,000

Wells Fargo Bank N.A. Floating RateNotes,



Wells Fargo Bank West N.A. FloatingRate Notes,


Wells Fargo Bank West N.A.,


Westpac Banking Corp., New YorkBranch,



96,000

Total Certificates Of Deposit

(Cost $96,000) 96,000

C O M M E RC I A L PA P E R – 21. 6 %

Banking – 18.0%

ABN AMRO Funding USA LLC,

1.74%, 4/5/18(1) 4,000 3,999

Bank of Nova Scotia,

2.18%, 6/8/18(1) 2,000 1,992

PRINCIPALAMOUNT

(000S)VALUE(000S)

C O M M E RC I A L PA P E R - 21. 6 % c o n t i n u e d


Bank of Nova Scotia, New YorkBranch,

(Floating, ICE LIBOR USD 3M +0.12%) 2.30%, 6/19/18(3) $3,000 $3,000

Commonwealth Bank of Australia,

1.67%, 4/9/18(1) 2,000 1,999



Commonwealth Bank of Australia, NewYork Branch,


DBS Bank Ltd.,

1.72%, 4/10/18(1) 3,000 2,999

2.07%, 5/29/18(1) 3,000 2,990

2.06%, 6/5/18(1) 3,000 2,989

HSBC Bank PLC,


ING US Funding LLC,



National Australia Bank Ltd.



National Australia Bank Ltd.,


Oversea-Chinese Banking Corp. Ltd.,




Skandinaviska Enskilda Banken AB,

2.28%, 6/21/18(1) 3,000 2,985


M O N E Y M A R K E T F U N D c o n t i n u e d



PRINCIPALAMOUNT

(000S)VALUE(000S)

C O M M E RC I A L PA P E R - 21. 6 % c o n t i n u e d


Toronto Dominion Bank, New YorkBranch,

(Floating, ICE LIBOR USD 1M +0.15%) 1.84%, 4/6/18(1) (3) $3,000 $3,000



United Overseas Bank Ltd.,

2.28%, 7/6/18(1) 2,500 2,484

Westpac Banking Corp.,


60,537

Brokerage – 1.2%

JPMorgan Securities LLC, Nrw YorkBranch,


Foreign Local Government – 0.9%

NRW.BANK,

1.87%, 4/25/18(1) 3,000 2,996

Healthcare – 1.5%

Baylor Scott & White Holdings,

2.18%, 5/23/18 5,000 4,985

Total Commercial Paper

(Cost $72,518) 72,518

E U RO D O L L A R T I M E D E P O S I T S – 27. 5 %

Banking – 24.4%

Australia and New Zealand BankingGroup,

1.73%, 4/3/18 10,000 10,000

BNP Paribas S.A., Paris Branch,

1.72%, 4/2/18 8,000 8,000

Credit Agricole S.A., London Branch,

1.67%, 4/2/18 14,000 14,000

1.73%, 4/2/18 5,040 5,040

ING Bank N.V., Amsterdam Branch,

1.70%, 4/2/18 5,040 5,040

KBC Bank N.V., New York Branch,

1.69%, 4/2/18 15,000 15,000

Natixis S.A., New York Branch,

1.68%, 4/2/18 9,000 9,000

PRINCIPALAMOUNT

(000S)VALUE(000S)

E U RO D O L L A R T I M E D E P O S I T S - 27. 5 % c o n t i n u e d


Swedbank AB, New York Branch,

1.68%, 4/2/18 $16,000 $16,000

82,080

Foreign Local Government – 3.1%

Zuercher Kantonalbank, Zurich Branch,

1.75%, 4/2/18 5,155 5,155

1.90%, 4/2/18 5,155 5,155

10,310

Total Eurodollar Time Deposits

(Cost $92,390) 92,390

M U N I C I PA L I N V E S T M E N T S – 16 .1 %

California – 2.7%

California State Taxable CommercialNotes, Series B-1

2.10%, 5/15/18 6,000 6,000

HW Hellman Building L.P. Bonds,

1.77%, 4/9/18(4) (5) 3,000 3,000

9,000

Delaware – 1.6%

Capital Source 16 LLC,

1.95%, 4/9/18(4) (5) 5,500 5,500

Illinois – 1.4%

Lexington Financial Services LLC,

1.97%, 4/9/18(4) (5) 4,800 4,800

New Jersey – 1.5%

North Hudson Sewerage AuthorityGross Revenue Lease Certificates,Senior Lien Taxable VariableRevenue Bonds, Series 2012 C (TDBank N.A. LOC)

1.85%, 4/9/18(4) (5) 5,000 5,000

New York – 6.5%

J P Morgan Chase Putters / DriversVariable Revenue Bonds, SeriesT0009

1.90%, 4/2/18(1) (4) (5) 10,000 10,000

Long Island Power Authority ElectricSystem Taxable Commercial PaperNotes, Series Gr-4A

2.10%, 12/19/18 5,000 5,000

MARCH 31, 2018



PRINCIPALAMOUNT

(000S)VALUE(000S)

M U N I C I PA L I N V E S T M E N T S - 16 .1 % c o n t i n u e d

New York – 6.5% continued

New York State Housing FinanceAgency Taxable Revenue Bonds,Maestro West Chelsea HousingProject (Wells Fargo Bank N.A. LOC)

1.85%, 4/9/18(4) (5) $2,000 $2,000

New York State Housing FinanceAgency Taxable Variable RevenueBonds, 606 West 57St HousingProject (Wells Fargo Bank N.A. LOC)

1.95%, 4/9/18(4) (5) 5,000 5,000

22,000

Washington – 2.4%

ASC Admiral Way LLC,

1.77%, 4/9/18(4) (5) 8,000 8,000

Total Municipal Investments

(Cost $54,300) 54,300

Investments, at Amortized Cost

( $349,041) 349,041

R E P U RC H A S E AG R E E M E N T S – 1. 9 % ( 6 )

Repurchase Agreements – 1.9%

Citigroup Global Markets, Inc., dated03/29/18, repurchase price $6,517

1.80%, 4/2/18 6,516 6,516

Total Repurchase Agreements

(Cost $6,516) 6,516

Total Investments – 105.8%

(Cost $355,557)(7) 355,557

Liabilities less Other Assets – (5.8%) (19,538)

NET ASSETS – 100.0% $336,019

(1) Securities exempt from registration under Rule 144A of the Securities Act of1933. These securities may be resold in transactions exempt from registration,normally to qualified institutional buyers. The value of these securities isdetermined in accordance with procedures established by the Board ofTrustees of Northern Funds.

(2) Variable rate security. Rate as of March 31, 2018 is disclosed.(3) Variable rate security. Rate as of March 31, 2018 is disclosed. Maturity date

represents the next interest reset date. The security’s legal final maturity dateis longer than the reset date. Securities with longer maturity dates have agreater sensitivity to changes in liquidity, interest rate risk and/or credit risk.

(4) Rate is determined by a remarketing agent which, in its judgment, on thebasis of prevailing financial markets, will be the lowest interest rate necessaryto enable the remarketing agent to sell the bonds at a price equal to 100%of the principal amount.

(5) Variable rate security. Rate as of March 31, 2018 is disclosed. Maturity daterepresents the date when principal payments may be due, taking into accountany call options exercised and any permissible maturity shortening features.

(6) The nature and terms of the collateral received for the repurchase agreementsare as follows:

NAME

FAIRVALUE(000S)

COUPONRATES

MATURITYDATES

U.S. Treasury Notes $6,646 2.38% 8/15/24

(7) The cost for federal income tax purposes was approximately $355,557,000.

Percentages shown are based on Net Assets. The classifications shown on theSchedule of Investments and in the tables herein are unaudited.

Various inputs are used in determining the value of the Fund’s investments. Theseinputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securitieson the measurement date.Level 2 - Other observable inputs (e.g., quoted prices in active markets for similarsecurities, securities valuations based on commonly quoted benchmark interestrates 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 anindication of the risk associated with investing in those securities and otherfinancial instruments, if any. The following table summarizes the valuations of theFund’s investments, which are carried at amortized cost, or at cost for repurchaseagreements, which approximates fair value, by the above fair value hierarchy asof March 31, 2018:

LEVEL 1(000S)

LEVEL 2(000S)

LEVEL 3(000S)

TOTAL(000S)

Investments held byMoney Market Fund(1) $— $355,557 $— $355,557

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end ofeach reporting period.

At March 31, 2018, there were no transfers between Level 1, Level 2 or Level 3classifications based on levels assigned to the securities on March 31, 2017.

EXPLANATION OF ABBREVIATIONS AND ACRONYMS USED THROUGHOUTTHE SCHEDULE OF INVESTMETNS:

1M - 1 Month

3M - 3 Month

ABS - Asset-Backed Securities

ICE LIBOR - Intercontinental Exchange London Interbank Offered Rate

LOC - Letter of Credit

USD - United States Dollars


M O N E Y M A R K E T F U N D c o n t i n u e d MARCH 31, 2018



PRINCIPALAMOUNT

(000S)VALUE(000S)

M U N I C I PA L I N V E S T M E N T S – 9 9 . 9 %

Alabama – 0.6%

Mobile County IDA Pollution ControlRevenue Refunding Bonds,ExxonMobil Project

1.70%, 4/2/18(1) (2) $3,000 $3,000

Tuscaloosa County IDA GulfOpportunity Zone Variable RevenueBonds, Series A, Hunt RefiningProject (JPMorgan Chase Bank N.A.LOC)

1.60%, 4/9/18(1) (2) 2,500 2,500

5,500

Alaska – 1.1%

Alaska State Housing Finance Corp.Home Mortgage Variable RevenueBonds, Series B

1.59%, 4/9/18(1) (2) 3,900 3,900

Valdez Marine Terminal RevenueRefunding Bonds, Series A, ExxonPipeline Projects

1.70%, 4/2/18(1) (2) 2,000 2,000

Valdez Marine Terminal RevenueRefunding Bonds, Series B, ExxonPipeline Company Project

1.70%, 4/2/18(1) (2) 3,800 3,800

9,700

California – 3.6%

California State Health FacilitiesFinancing Authority VariableRevenue Bonds, Series C, KaiserPermanente

1.58%, 4/9/18(1) (2) 5,000 5,000

California State Pollution ControlFinancing Authority PCR RevenueRefunding Bonds, Pacific Gas &Electric (Mizuho Bank Ltd. LOC)

1.65%, 4/2/18(1) (2) 5,200 5,200

California Statewide CommunitiesDevelopment Authority MFHVariable Revenue Bonds, Series WW(AMT), David Avenue Apartments

1.69%, 4/9/18(1) (2) 700 700

Daly City Housing DevelopmentFinance Agency Multifamily VariableRevenue Refunding Bonds, Series A,Serramonte Del Ray

1.66%, 4/9/18(1) (2) 3,200 3,200

PRINCIPALAMOUNT

(000S)VALUE(000S)

M U N I C I PA L I N V E S T M E N T S - 9 9 . 9 % c o n t i n u e d

California – 3.6% continued

Oceanside MFH Variable RevenueBonds, Shadow Way (FHLMC LOC)

1.60%, 4/9/18(1) (2) $7,575 $7,575

Riverside City Variable RevenueRefunding COPS (Bank of AmericaN.A. LOC)

1.53%, 4/9/18(1) (2) 9,700 9,700

31,375

Colorado – 2.2%

Colorado City Springs Co. UtilitiesVariable Revenue Bonds, Series C

1.62%, 4/9/18(1) (2) 7,800 7,800

Colorado State Educational & CulturalFacilities Authority AdjustableRevenue Refunding Bonds, CapitalChristian Schools (Five Star BankLOC)

1.58%, 4/9/18(1) (2) 8,695 8,695

Colorado State Housing & FinanceAuthority SFM Revenue Bonds,Series 1-A3

1.62%, 4/9/18(1) (2) 2,705 2,705

19,200

Connecticut – 0.6%

Connecticut State Housing FinanceAuthority Housing Finance ProgramVariable Revenue Refunding Bonds,Subseries F-3

1.61%, 4/9/18(1) (2) 5,000 5,000

Delaware – 0.0%

Delaware Economic DevelopmentAuthority Variable Revenue Bonds,YMCA Delaware Project (PNC BankLOC)

1.62%, 4/9/18(1) (2) 200 200

Florida – 9.9%

Broward County School District G.O.Limited TANS

2.00%, 6/15/18 2,000 2,004

Florida Municipal Power AgencyVariable Revenue Bonds, AllRequirements Supply (Bank ofAmerica N.A. LOC)

1.75%, 4/2/18(1) (2) 100 100


M U N I C I PA L M O N E Y M A R K E T F U N D MARCH 31, 2018



PRINCIPALAMOUNT

(000S)VALUE(000S)


Florida – 9.9% continued

Florida State HFA Adjustable RevenueBonds (FNMA Insured)

1.65%, 4/9/18(1) (2) $3,700 $3,700

Florida State Housing Finance Corp.Multifamily Mortgage VariableRevenue Bonds, Series K-1, AutumnPlace Apartments (Suntrust BankLOC)

1.61%, 4/9/18(1) (2) 5,955 5,955

Highlands County Health FacilitiesAuthority Variable Revenue Bonds,Series A, Hospital Adventist HealthSystem

1.60%, 4/9/18(1) (2) 23,100 23,100

Highlands County Health FacilitiesAuthority Variable RevenueRefunding Bonds, Adventist HealthSystem

1.60%, 4/9/18(1) (2) 15,925 15,925

JEA Electric System Variable RevenueBonds, Subseries D

1.69%, 4/2/18(1) (2) 3,305 3,305

Jea Variable Rate Electric SystemVariable Revenue Bonds, SeriesThree C-1

1.65%, 4/9/18(1) (2) 5,300 5,300

Jea Variable Rate Electric SystemVariable Revenue Bonds, SeriesThree-A

1.60%, 4/9/18(1) (2) 3,500 3,500

Miami Dade County SpecialObligation Revenue Bonds, Series B,Juvenile Courthouse (AMBACInsured) (TD Bank N.A. LOC)

1.58%, 4/9/18(1) (2) 4,000 4,000

Miami-Dade County Seaport VariableRevenue Bonds Series A (Bank ofTokyo-Mitsubishi UFJ LOC)

1.63%, 4/9/18(1) (2) 15,000 15,000

Orange County Health FacilitiesAuthority Variable Revenue Bonds,Series C-2, Nemours Foundation (TDBank N.A. LOC)

1.59%, 4/9/18(1) (2) 1,800 1,800

PRINCIPALAMOUNT

(000S)VALUE(000S)


Florida – 9.9% continued

Orange County Housing FinanceAuthority MFH Adjustable RevenueBonds, Series B (AMT), LakesidePointe Apartments (FNMA LOC)

1.70%, 4/9/18(1) (2) $1,900 $1,900

Sunshine State Governmental FinancingCommission Variable RevenueBonds, Series A, Miami DadeCounty Program (MUFG Union BankN.A. LOC)

1.61%, 4/9/18(1) (2) 1,000 1,000

86,589

Georgia – 1.5%

Glynn-Brunswick Memorial HospitalAuthority Anticipation CertificatesVariable Revenue Bonds, SoutheastGeorgia Health System Project, (TDBank N.A. LOC)

1.60%, 4/9/18(1) (2) 200 200

Gwinnett County DevelopmentAuthority Variable Revenue Bonds,Goodwill North, Inc. Project (BranchBanking & Trust Co. LOC)

1.48%, 4/9/18(1) (2) 1,220 1,220

Monroe County Development AuthorityPCR Variable Revenue Bonds, SeriesB, Oglethorpe Power Corp.(JPMorgan Chase Bank N.A. LOC)

1.65%, 4/9/18(1) (2) 7,000 7,000

Municipal Electric Authority of GeorgiaAdjustable General RevenueRefunding Bonds, Subseries C (TDBank N.A. LOC)

1.58%, 4/9/18(1) (2) 4,810 4,810

13,230

Illinois – 15.5%

Illinois State Development FinanceAuthority Variable Revenue Bonds,North Park University Project(U.S. Bank N.A. LOC)

1.59%, 4/9/18(1) (2) 3,700 3,700

Illinois State Development FinanceAuthority Variable Revenue Bonds,Series B, Evanston Northwestern

1.70%, 4/2/18(1) (2) 5,100 5,100


M U N I C I PA L M O N E Y M A R K E T F U N D c o n t i n u e d



PRINCIPALAMOUNT

(000S)VALUE(000S)


Illinois – 15.5% continued

Illinois State Development FinanceAuthority Variable Revenue Bonds,Wheaton Academy Project (BMOHarris Bank N.A. LOC)

1.65%, 4/9/18(1) (2) $5,700 $5,700

Illinois State Educational FacilitiesAuthority Student Housing AdjustableRevenue Bonds, IIT State,Unrefunded Balance (BMO HarrisBank N.A. LOC)

1.65%, 4/9/18(1) (2) 3,150 3,150

Illinois State Finance AuthorityAdjustable Revenue Bonds, SubseriesB, Northwestern University

1.59%, 4/9/18(1) (2) 2,200 2,200

Illinois State Finance Authority VariableRevenue Bonds, Community ActionPartnership (Citibank N.A. LOC)

1.65%, 4/9/18(1) (2) 2,470 2,470

Illinois State Finance Authority VariableRevenue Bonds, North ParkUniversity Project (U.S. Bank N.A.LOC)

1.59%, 4/9/18(1) (2) 7,300 7,300

Illinois State Finance Authority VariableRevenue Bonds, NorthwesternMemorial Hospital University(U.S. Bank N.A. LOC)

1.68%, 4/2/18(1) (2) 7,200 7,200

Illinois State Finance Authority VariableRevenue Bonds, Series B, Universityof Chicago Media Center (WellsFargo Bank N.A. LOC)

1.70%, 4/2/18(1) (2) 4,800 4,800

Illinois State Finance Authority VariableRevenue Bonds, Series D-1,University Of Chicago Medical(PNC Bank LOC)

1.65%, 4/2/18(1) (2) 6,000 6,000

Illinois State Finance Authority VariableRevenue Bonds, University ofChicago Medical Center (SumitomoMitsui Banking LOC)

1.65%, 4/9/18(1) (2) 12,200 12,200

PRINCIPALAMOUNT

(000S)VALUE(000S)


Illinois – 15.5% continued

Illinois State Finance Authority VariableRevenue Bonds, University ofChicago Medical Center, Series D-2(PNC Bank LOC)

1.65%, 4/2/18(1) (2) $5,800 $5,800

Illinois State Finance Authority VariableRevenue Refunding Bonds, HospitalSisters Services (Bank of MontrealLOC)

1.62%, 4/9/18(1) (2) 5,000 5,000

Illinois State Health Facilities AuthorityVariable Revenue Refunding Bonds,Evanston Hospital Corp.

1.63%, 4/9/18(1) (2) 16,000 16,000

Illinois State Toll Highway AuthorityVariable Revenue Bonds, SeriesA-2A, Senior Priority (Bank ofTokyo-Mitsubishi UFJ LOC)

1.64%, 4/9/18(1) (2) 5,360 5,360

Illinois State Toll Highway AuthorityVariable Revenue Bonds, SeriesA-2D, Senior Priority (Bank ofAmerica N.A. LOC)

1.63%, 4/9/18(1) (2) 18,350 18,350

Quad Cities Regional EDA AdjustableRevenue Bonds, Augustana College(Harris N.A. LOC)

1.62%, 4/9/18(1) (2) 3,700 3,700

RBC Municipal Products, Inc. TrustRevenue Notes, Series 2017-E-100(AGM Insured)

1.61%, 4/9/18(1) (2) (3) 14,900 14,900

Southwestern Illinois DevelopmentAuthority Variable Revenue Bonds,Arizona Co., Inc. Project (FHLB LOC)

1.68%, 4/9/18(1) (2) 1,000 1,000

Tender Option Bond TrustReceipts/Certificates Various StatesFloaters Revenue Bonds, Series2018-XF253

1.61%, 4/9/18(1) (2) (3) 6,400 6,400

136,330

MARCH 31, 2018



PRINCIPALAMOUNT

(000S)VALUE(000S)


Indiana – 1.7%

Indiana State Finance AuthorityEnvironmental Variable RevenueRefunding Bonds, Series A-4, DukeEnergy Indiana Project (SumitomoMitsui Banking LOC)

1.70%, 4/2/18(1) (2) $7,800 $7,800

Indiana State Finance Authority HealthSystem Variable Revenue RefundingBonds, Series I, Sisters of St. FrancisHealth Services, Inc. (Barclays BankPLC LOC)

1.72%, 4/2/18(1) (2) 6,885 6,885

14,685

Iowa – 4.5%

Hills City Health Facilities VariableRevenue Bonds, Mercy HospitalProject (U.S. Bank N.A. LOC)

1.75%, 4/2/18(1) (2) 9,910 9,910

Iowa State Finance AuthorityCommunity Variable Revenue Bonds,Wesley Retirement Services (Bank ofAmerica N.A. LOC)

1.59%, 4/9/18(1) (2) 6,300 6,300

1.59%, 4/9/18(1) (2) 3,345 3,345

Iowa State Finance AuthorityEducational Facilities VariableRevenue Bonds, Holy Family CatholicSchools (U.S. Bank N.A. LOC)

1.70%, 4/2/18(1) (2) 2,000 2,000

Iowa State Higher Education LoanAuthority Private College FacilitiesVariable Refunding Revenue Bonds,Loras College Project (Bank ofAmerica N.A. LOC)

1.70%, 4/2/18(1) (2) 3,860 3,860

Iowa State Higher Education LoanAuthority Private College FacilitiesVariable Revenue Bonds (Bank ofAmerica N.A. LOC)

1.70%, 4/2/18(1) (2) 2,500 2,500

Iowa State Higher Education LoanAuthority Private College FacilitiesVariable Revenue Bonds, LorasCollege Project (Bank of AmericaN.A. LOC)

1.70%, 4/2/18(1) (2) 6,050 6,050

PRINCIPALAMOUNT

(000S)VALUE(000S)


Iowa – 4.5% continued

Iowa State Higher Education LoanAuthority Variable Revenue Bonds,Private College Facilities Des Moines(BMO Harris Bank N.A. LOC)

1.71%, 4/2/18(1) (2) $1,660 $1,660

Tender Option Bond TrustReceipts/Certificates Various StatesFloaters Revenue Bonds, Series2017-ZM0582

1.61%, 4/9/18(1) (2) (3) 3,750 3,750

39,375

Kentucky – 0.1%

Lexington-Fayette Urban CountyGovernment Variable RevenueRefunding Bonds, Eastland Parkway(Traditional Bank, Inc. LOC)

1.83%, 4/9/18(1) (2) 1,215 1,215

Louisiana – 3.6%

East Baton Rouge Parish IDB RevenueBonds, Series B, ExxonMobil Project

1.69%, 4/2/18(1) (2) 10,000 10,000

Louisiana State HFA Variable RevenueBonds, Canterbury HouseApartments (FNMA LOC)

1.60%, 4/9/18(1) (2) 15,470 15,470

Louisiana State Public FacilitiesAuthority Multifamily VariableRevenue Refunding Bonds (FNMAInsured)

1.68%, 4/9/18(1) (2) 6,000 6,000

31,470

Maryland – 0.4%

Maryland State Health & HigherEducational Facilities AuthorityVariable Revenue Bonds, OrdentonChristian School (PNC Bank LOC)

1.58%, 4/9/18(1) (2) 3,535 3,535

Massachusetts – 0.5%

Massachusetts State G.O. LimitedRANS, Series C

2.00%, 6/25/18 4,000 4,009





PRINCIPALAMOUNT

(000S)VALUE(000S)


Michigan – 0.5%

Michigan State Strategic Fund LimitedObligations Variable RevenueRefunding Bonds, Consumers EnergyCo. (JPMorgan Chase Bank N.A.LOC)

1.61%, 4/9/18(1) (2) $4,500 $4,500

Minnesota – 3.8%

Hennepin County Variable G.O.Unlimited Bonds, Series B

1.57%, 4/9/18(1) (2) 7,500 7,500

Minnesota State Higher EducationFacilities Authority Revenue VariableBonds, Series 6Q, ConcordiaUniversity, St. Paul (U.S. Bank N.A.LOC)

1.69%, 4/2/18(1) (2) 5,335 5,335

Minnetonka City MFH VariableRevenue Bonds, Tonka Creek Project(Bridgewater Bank LOC)

1.66%, 4/9/18(1) (2) 3,515 3,515

Minnetonka City MFH VariableRevenue Refunding Bonds,Minnetonka Hills Apartments (FNMALOC)

1.67%, 4/9/18(1) (2) 300 300

Oak Park Heights MFH VariableRevenue Refunding Bonds, BoutwellsLanding

1.60%, 4/9/18(1) (2) 10,900 10,900

Owatonna Housing Variable RevenueRefunding Bonds, Series A, SecondCentury Project (Bridgewater BankLOC)

1.69%, 4/9/18(1) (2) 2,135 2,135

St. Louis Park MFH Variable RevenueBonds, Series B, Shoreham Project(Bridgewater Bank LOC)

1.66%, 4/9/18(1) (2) 3,700 3,700

33,385

Mississippi – 3.4%

Mississippi State Business FinanceCommission Gulf Opportunity ZoneRevenue Bonds, Series A, ChevronUSA, Inc. Project

1.70%, 4/2/18(1) (2) 3,000 3,000

1.70%, 4/2/18(1) (2) 3,595 3,595

PRINCIPALAMOUNT

(000S)VALUE(000S)


Mississippi – 3.4% continued

Mississippi State Business FinanceCommission Gulf Opportunity ZoneRevenue Bonds, Series C, ChevronUSA, Inc. Project

1.70%, 4/2/18(1) (2) $400 $400

Mississippi State Business FinanceCommission Gulf Opportunity ZoneRevenue Bonds, Series G, ChevronUSA, Inc. Project

1.70%, 4/2/18(1) (2) 8,600 8,600

Mississippi State Business FinanceCommission Gulf Opportunity ZoneRevenue Bonds, Series L, ChevronUSA, Inc. Project

1.70%, 4/2/18(1) (2) 100 100

Mississippi State Business FinanceCommission Gulf Opportunity ZoneVariable Revenue Bonds, Series B,Chevron USA, Inc. Project

1.70%, 4/2/18(1) (2) 1,000 1,000

1.70%, 4/2/18(1) (2) 2,500 2,500

Mississippi State Business FinanceCommission Gulf Opportunity ZoneVariable Revenue Bonds, Series C,Chevron USA, Inc. Project

1.70%, 4/2/18(1) (2) 290 290

Mississippi State Business FinanceCommission Gulf Opportunity ZoneVariable Revenue Bonds, Series E,Chevron USA, Inc. Project

1.70%, 4/2/18(1) (2) 3,300 3,300

Mississippi State Business FinanceCommission Gulf Opportunity ZoneVariable Revenue Bonds, Series F,Chevron USA, Inc. Project

1.70%, 4/2/18(1) (2) 2,500 2,500

Mississippi State Business FinanceCommission Gulf Opportunity ZoneVariable Revenue Bonds, Series H,Chevron USA, Inc. Project

1.70%, 4/2/18(1) (2) 4,875 4,875

30,160

MARCH 31, 2018



PRINCIPALAMOUNT

(000S)VALUE(000S)


Missouri – 2.1%

Bridgeton Industrial DevelopmentAuthority Variable Revenue Bonds,Stolze Printing Project (CarrolltonBank LOC)

1.70%, 4/9/18(1) (2) $1,900 $1,900

Missouri State Health & EducationalFacilities Authority Variable RevenueBonds, Bethesda Health Group, Inc.(Bank of America N.A. LOC)

1.72%, 4/2/18(1) (2) 1,000 1,000

Platte County Missouri IDA MFHAdjustable Revenue RefundingBonds, Wexford Place Project

1.68%, 4/9/18(1) (2) 5,335 5,335

Saint Joseph IDA Health FacilitiesVariable Revenue Bonds, HeartlandRegional Medical Center (U.S. BankN.A. LOC)

1.69%, 4/2/18(1) (2) 8,500 8,500

St. Louis Missouri City IDA VariableRevenue Bonds, Mid-AmericaTransplant Services (BMO HarrisBank N.A. LOC)

1.69%, 4/2/18(1) (2) 1,955 1,955

18,690

Nevada – 0.2%

Clark County Airport Variable RevenueBonds, Sub Lien, Series D-2B (RoyalBank of Canada LOC)

1.60%, 4/9/18(1) (2) 1,300 1,300

New Jersey – 2.3%

Hudson County Improvement AuthorityRevenue Notes, Series C-1 (CountyGtd.)

2.25%, 10/18/18 1,000 1,006

RBC Municipal Products, Inc. TrustRevenue Bonds, Series E-102, FloaterCertificates (Royal Bank of CanadaLOC)

1.61%, 4/9/18(1) (2) (3) 4,000 4,000

RBC Municipal Products, Inc. TrustRevenue Notes, Series 2018-E117(Royal Bank of Canada LOC)

1.76%, 4/2/18(1) (2) 15,000 15,000

20,006

PRINCIPALAMOUNT

(000S)VALUE(000S)


New York – 15.0%

Metropolitan Transportation AuthorityRevenue Bonds, Subseries E-1(U.S. Bank N.A. LOC)

1.70%, 4/2/18(1) (2) $5,000 $5,000

Metropolitan Transportation AuthorityVariable Revenue Bonds, SubseriesE-2 (Bank of America N.A. LOC)

1.59%, 4/9/18(1) (2) 2,000 2,000

New York City Adjustable G.O.Unlimited Bonds, Series I, SubseriesI-8

1.72%, 4/2/18(1) (2) 8,900 8,900

New York City Adjustable G.O.Unlimited Bonds, Subseries G-6(Mizuho Bank Ltd. LOC)

1.77%, 4/2/18(1) (2) 8,000 8,000

New York City Adjustable G.O.Unlimited, Subseries A-5 (Bank ofMontreal LOC)

1.60%, 4/9/18(1) (2) 5,650 5,650

New York City Municipal WaterFinance Authority Water & SewerSystem Adjustable Revenue Bonds,Series DD-3B, Second Generation

1.70%, 4/2/18(1) (2) 10,000 10,000

New York City Municipal WaterFinance Authority Water & SewerSystem Adjustable Revenue Bonds,Series F, Subseries F-2 (Citibank N.A.LOC)

1.70%, 4/2/18(1) (2) 10,000 10,000

New York City Municipal WaterFinance Authority Water & SewerSystem Adjustable Revenue Bonds,Subseries B

1.70%, 4/2/18(1) (2) 4,000 4,000

New York City Municipal WaterFinance Authority Water & SewerSystem Second General ResolutionAdjustable Revenue Bonds

1.73%, 4/2/18(1) (2) 4,000 4,000

New York City Municipal WaterFinance Authority Water & SewerSystem Second General SolutionAdjustable Revenue Bonds, Series BB

1.75%, 4/2/18(1) (2) 10,000 10,001





PRINCIPALAMOUNT

(000S)VALUE(000S)



New York City Transitional FinanceAuthority Adjustable Future TaxSecured Revenue Bonds

1.65%, 4/2/18(1) (2) $5,000 $5,000

1.75%, 4/2/18(1) (2) 1,000 1,000

New York City Transitional FinanceAuthority Future Tax SecuredAdjustable Revenue Bonds, SeriesA-3

1.73%, 4/2/18(1) (2) 1,800 1,800

New York City Transitional FinanceAuthority Future Tax SecuredVariable Revenue Bonds RevenueRefunding Bonds

1.70%, 4/2/18(1) (2) 3,850 3,850

New York City Variable G.O. UnlimitedBonds, Subseries A-2 (Mizuho BankLtd. LOC)

1.75%, 4/2/18(1) (4) 5,600 5,600

New York City Variable G.O. UnlimitedBonds, Subseries A-3 (Mizuho BankLtd. LOC)

1.75%, 4/2/18(1) (2) 1,400 1,400

New York City Variable G.O. UnlimitedBonds, Subseries L-5

1.70%, 4/2/18(1) (2) 3,600 3,600

New York City Water Finance AuthorityWater & Sewer System SecondGeneration Adjustable RevenueBonds (M&T BANK LOC)

1.70%, 4/2/18(1) (2) 6,200 6,200

New York G.O. Unlimited Bonds,Subseries I-4, (TD Bank N.A. LOC)

1.70%, 4/2/18(1) (2) 600 600

New York Housing Development Corp.Multifamily Mortgage VariableRevenue Bonds, 245 East 124ThStreet, Non AMT (FHLMC LOC)

1.62%, 4/9/18(1) (2) 4,600 4,600

New York Mortgage Agency HomeOwner Mortgage Variable RevenueBonds, Non Ace Series 207

1.58%, 4/9/18(1) (2) 10,000 10,000

PRINCIPALAMOUNT

(000S)VALUE(000S)



New York State HFA Variable RevenueBonds, Series A, Maestro WestChelsea Housing (Wells Fargo BankN.A. LOC)

1.61%, 4/9/18(1) (2) $4,100 $4,100

New York State HFA Variable RevenueBonds, Series S, 19 India Street(JPMorgan Chase Bank N.A. LOC)

1.61%, 4/9/18(1) (2) 2,120 2,120

New York State Housing FinanceAgency 25 Washington StreetHousing Variable Revenue Bonds(M&T Bank N.A. LOC)

1.63%, 4/9/18(1) (2) 785 785

New York State Housing FinanceAgency 33 Bond Street HousingVariable Revenue Bonds(Manufacturers & Traders LOC)

1.60%, 4/9/18(1) (2) 800 800

New York State Housing FinanceAgency Variable Revenue Bonds,316 Eleventh Avenue Housing, SeriesA (FNMA LOC)

1.65%, 4/9/18(1) (2) 1,100 1,100

New York State Housing FinanceAgency Variable Revenue Bonds,625 West 57Th Street HousingProject (Bank of New York MellonLOC)

1.58%, 4/9/18(1) (2) 10,000 10,000

New York Variable G.O. UnlimitedBonds, Subseries L-4 (U.S. Bank N.A.LOC)

1.70%, 4/2/18(1) (2) 1,485 1,485

131,591

Ohio – 1.5%

Allen County Hospital FacilitiesAdjustable Revenue Bonds, Series C,Catholic Healthcare (Union BankN.A. LOC)

1.65%, 4/2/18(1) (2) 2,900 2,900

Hamilton County Hospital FacilitiesVariable Revenue Refunding Bonds,Cincinnati Children’s Hospital

(Floating, SIFMA Municipal SwapIndex Yield + 0.00%) 1.09%,4/9/18(2) 8,000 8,000

MARCH 31, 2018



PRINCIPALAMOUNT

(000S)VALUE(000S)


Ohio – 1.5% continued

Ohio State Adjustable G.O. UnlimitedBonds, Series B, Common Schools

1.58%, 4/9/18(1) (2) $100 $100

Ohio State Higher Educational FacilitiesCommission Hospital Revenue Bonds,Cleveland Clinic Health System

1.71%, 4/2/18(1) (2) 2,500 2,500

13,500

Oregon – 0.0%

Oregon State Facilities AuthorityVariable Revenue Bonds, Series A,Quatama Crossing Housing (FNMALOC)

1.68%, 4/9/18(1) (2) 300 300

Pennsylvania – 4.0%

Lancaster County Hospital AuthorityVariable Revenue Bonds, Series D,Masonic Homes Project (JPMorganChase Bank N.A. LOC)

1.71%, 4/2/18(1) (2) 3,400 3,400

Montgomery County G.O. UnlimitedBonds, Series A

1.69%, 4/2/18(1) (2) 12,300 12,300

Pennsylvania State EconomicDevelopment Financing AuthorityExempt Facilities Variable RevenueBonds, PSEG Power (TD Bank N.A.LOC)

1.58%, 4/9/18(1) (2) 3,000 3,000

RBC Municipal Products, Inc. TrustRevenue Bonds, Series E-101, FloaterCertificates (Royal Bank of CanadaLOC)

1.61%, 4/9/18(1) (2) 5,000 5,000

RBC Municipal Products, Inc. TrustRevenue Bonds, Series E-111 (RoyalBank of Canada LOC)

1.74%, 4/2/18(1) (2) 7,000 7,000

West Cornwall Township MunicipalAuthority Senior Living FacilityVariable Revenue Bonds, LebanonValley Bretheren Home Project (PNCBank LOC)

1.58%, 4/9/18(1) (2) 4,400 4,400

35,100

PRINCIPALAMOUNT

(000S)VALUE(000S)


Rhode Island – 0.0%

Rhode Island Health & EducationalBuilding Corp. Variable RevenueRefunding Bonds, Bryant University(TD Bank N.A. LOC)

1.59%, 4/9/18(1) (2) $200 $200

South Carolina – 1.5%

Greenville Hospital System BoardHospital Facilities Variable RevenueRefunding, Series B (U.S. Bank N.A.LOC)

1.57%, 4/9/18(1) (2) 3,500 3,500

South Carolina Public Service AuthorityRevenue Notes Commercial Paper,Series D

1.35%, 5/21/18 10,000 10,000

13,500

South Dakota – 0.3%

South Dakota Housing DevelopmentAuthority MFH Variable RevenueBonds, Country MeadowsApartments Project

1.61%, 4/9/18(1) (2) 2,500 2,500

Tennessee – 1.9%

Blount County Public Building AuthorityVariable Revenue Bonds, LocalGovernment Public Improvement,Series C-3-A (County Gtd.)

1.59%, 4/9/18(1) (2) 5,700 5,700

Blount County Public Building AuthorityVariable Revenue Bonds, SeriesE-7-A, Local Government PublicImprovement (County Gtd.) (BranchBanking & Trust Co. LOC)

1.59%, 4/9/18(1) (2) 2,275 2,275

Knox County Health & EducationalFacilities Board Variable RevenueBonds, Johnson Bible College Project(Home Federal Bank of TennesseeLOC)

1.61%, 4/9/18(1) (2) 2,000 2,000

Sevier County Public Building AuthorityVariable Revenue Bonds, Series6-A1, Local Government PublicImprovement (County Gtd.)

1.59%, 4/9/18(1) (2) 2,800 2,800





PRINCIPALAMOUNT

(000S)VALUE(000S)


Tennessee – 1.9% continued

Sevier County Public Building AuthorityVariable Revenue Bonds, Series B-1,Local Government PublicImprovement (Branch Banking &Trust LOC)

1.59%, 4/9/18(1) (2) $3,695 $3,695

16,470

Texas – 11.0%

Bexar Health Facilities DevelopmentCorp. Health Care Revenue Bonds,Series A, Centro Del Barrio(JPMorgan Chase Bank N.A. LOC)

1.64%, 4/9/18(1) (2) 11,780 11,780

Bexar Housing Finance Corp. VariableRevenue Refunding Bonds, PalisadesPark Apartments Project

1.66%, 4/9/18(1) (2) 3,380 3,380

Brazos Harbor Industrial DevelopmentCorp. Variable Revenue RefundingBonds, BASF Corp. Project

1.67%, 4/9/18(1) (2) 2,400 2,400

Harris County Cultural EducationFacilities Finance Corp. VariableRevenue Bonds, Subseries C-1,Methodist Hospital System

1.72%, 4/2/18(1) (4) 5,400 5,400

Harris County Health FacilitiesDevelopment Corp. VariableRevenue Refunding Bonds, SeriesA-2, Methodist Hospital System

1.72%, 4/2/18(1) (2) 4,900 4,900

Lower Neches Valley AuthorityIndustrial Development Corp.Variable Revenue Refunding Bonds,Series A, ExxonMobil Project

1.70%, 4/2/18(1) (2) 1,000 1,000

Mesquite Independent School DistrictVariable G.O. Unlimited Bonds,Series A, School Building Project(PSF-Gtd.)

1.60%, 4/9/18(1) (2) 1,750 1,750

Northwest Independent School DistrictVariable G.O. Unlimited Bonds(PSF-Gtd.)

1.60%, 4/9/18(1) (2) 500 500

PRINCIPALAMOUNT

(000S)VALUE(000S)


Texas – 11.0% continued

Port Arthur Navigation District IndustrialDevelopment Corp. Exempt FacilitiesVariable Revenue Bonds, Series A,Total Petrochemicals

1.66%, 4/9/18(1) (2) $5,000 $5,000

Port Arthur Navigation District IndustrialDevelopment Corp. Exempt FacilitiesVariable Revenue Bonds, TotalPetrochemicals

1.66%, 4/9/18(1) (2) 12,500 12,500

1.66%, 4/9/18(1) (2) 1,600 1,600

San Antonio MFH Finance Corp.Variable Revenue Bonds, Artisan SanPedro Apartments (FHLMC LOC)

1.61%, 4/9/18(1) (2) 13,000 13,000

Texas State Department of Housing &Community Affairs MFH VariableRevenue Bonds, Costa MariposaApartments

1.61%, 4/9/18(1) (2) 8,000 8,000

Texas State TRANS

4.00%, 8/30/18 17,450 17,669

Texas State Variable G.O. UnlimitedBonds

1.63%, 4/9/18(1) (2) 8,000 8,000

96,879

Utah – 2.7%

Murray City Hospital Variable RevenueBonds, Series C, IHC HealthServices, Inc.

1.72%, 4/2/18(1) (2) 10,500 10,500

Murray City Utah Hospital VariableRevenue Bonds, Health Services Inc.,Series B

1.61%, 4/9/18(1) (2) 3,000 3,000

Utah State Housing Corp. MFHVariable Revenue Bonds, FlorentineVillas-A (FHLMC LOC)

1.61%, 4/9/18(1) (2) 9,880 9,880

23,380

MARCH 31, 2018



PRINCIPALAMOUNT

(000S)VALUE(000S)


Virginia – 0.8%

Lynchburg Economic DevelopmentAuthority Hospital Variable RevenueRefunding Bonds, Centra HealthObligated (Branch Banking & TrustLOC)

1.68%, 4/2/18(1) (2) $3,500 $3,500

Virginia Small Business FinancingAuthority Variable RevenueRefunding Bonds, Virginia UniversityReal Estate (Bank of America N.A.LOC)

1.71%, 4/2/18(1) (2) 3,305 3,305

6,805

Washington – 0.8%

Washington State Higher EducationFacilities Authority Variable RevenueBonds, Whitman College Project

1.58%, 4/9/18(1) (2) 3,060 3,060

Washington State Housing FinanceCommission Variable RevenueBonds, Draw Down Redmond RidgeApartments (FHLB LOC)

1.63%, 4/9/18(1) (2) 3,500 3,500

Washington State Housing FinanceCommission Variable RevenueRefunding Bonds, Olympic HeightsApartments Project (FNMA LOC)

1.60%, 4/9/18(1) (2) 100 100

6,660

Wisconsin – 0.1%

Sun Prairie Development VariableRevenue Bonds, YMCA Dane CountyProject (U.S. Bank N.A. LOC)

1.58%, 4/9/18(1) (2) 485 485

Wyoming – 1.7%

Lincoln County PCR Variable RevenueRefunding Bonds, ExxonMobilProject (Non-AMT)

1.69%, 4/2/18(1) (2) 15,000 15,000

PRINCIPALAMOUNT

(000S)VALUE(000S)


Municipal States Pooled Securities – 0.5%

Tender Option Bond TrustReceipts/Certificates Various StatesFloaters Revenue Bonds, Series2017-XM0492

1.61%, 4/9/18(1) (2) (3) $4,250,000 $4,250

Total Municipal Investments

(Cost $876,074) 876,074


(Cost $876,074)(5) 876,074

Other Assets less Liabilities – 0.1% 822

NET ASSETS – 100.0% $876,896

(1) Rate is determined by a remarketing agent which, in its judgment, on thebasis of prevailing financial markets, will be the lowest interest rate necessaryto enable the remarketing agent to sell the bonds at a price equal to 100%of the principal amount.

(2) Variable rate security. Rate as of March 31, 2018 is disclosed. Maturity daterepresents the date when principal payments may be due, taking into accountany call options exercised and any permissible maturity shortening features.

(3) Securities exempt from registration under Rule 144A of the Securities Act of1933. These securities may be resold in transactions exempt from registration,normally to qualified institutional buyers. The value of these securities isdetermined in accordance with procedures established by the Board ofTrustees of Northern Funds.

(4) Variable rate security. Rate as of March 31, 2018 is disclosed. Maturity daterepresents the next interest reset date. The security’s legal final maturity dateis longer than the reset date. Securities with longer maturity dates have agreater sensitivity to changes in liquidity, interest rate risk and/or credit risk.

(5) The cost for federal income tax purposes was approximately $876,074,000.






At March 31, 2018, the industry sectors (unaudited) for the Fund were:

I N D U S T RY S E C TO R % OF TOTAL INVESTMENTS

Hospital 23.4%

Housing 15.6

State 8.4

Transportation 7.1

Industrial 6.4

Water & Sewer 5.9

IDB & PCR 5.9

University 5.7

All other sectors less than 5% 21.6

Total 100.0%




LEVEL 1(000S)

LEVEL 2(000S)

LEVEL 3(000S)

TOTAL(000S)

Investments held by MunicipalMoney Market Fund(1) $— $876,074 $— $876,074




EXPLANATIONS OF ABBREVIATIONS AND ACRONYMS USEDTHROUGHOUT THE SCHEDULE OF INVESTMENTS:

AGM - Assured Guaranty Municipal Corporation

AMBAC - American Municipal Bond Assurance Corporation

AMT - Alternative Minimum Tax

COPS - Certificates of Participation

EDA - Economic Development Authority

FHLB - Federal Home Loan Bank

FHLMC - Federal Home Loan Mortgage Corporation

FNMA - Federal National Mortgage Association

G.O. - General Obligation

Gtd. - Guaranteed

HFA - Housing Finance Authority

IDA - Industrial Development Authority

IDB - Industrial Development Board

LOC - Letter of Credit

MFH - Multifamily Housing

PCR - Pollution Control Revenue

PSF - Permanent School Fund

RANS - Revenue Anticipation Notes

SIFMA - Securities Industry And Financial Markets Association

SFM - Single Family Mortgage

TANS - Tax Anticipation Notes

TRANS - Tax Revenue Anticipation Notes

MARCH 31, 2018



PRINCIPALAMOUNT

(000S)VALUE(000S)

U . S . G OV E R N M E N T AG E N C I E S – 4 2 . 3 % ( 1 )

Federal Farm Credit Bank – 7.5%

FFCB Bonds,

1.23%, 7/27/18 $12,000 $11,999

1.25%, 8/10/18 12,000 11,999

FFCB Discount Notes,

1.26%, 4/12/18(2) 7,000 6,997

1.26%, 4/18/18(2) 4,000 3,998

1.25%, 5/7/18(2) 18,000 17,978

1.27%, 5/9/18(2) 11,000 10,985

1.25%, 6/4/18(2) 23,000 22,950

1.27%, 6/7/18(2) 12,000 11,972

1.26%, 6/19/18(2) 14,000 13,962

1.27%, 6/27/18(2) 1,000 997

1.28%, 6/27/18(2) 60,000 59,817

1.27%, 6/28/18(2) 15,000 14,954

1.27%, 7/12/18(2) 8,000 7,972

1.28%, 7/16/18(2) 8,000 7,970

1.26%, 7/25/18(2) 23,000 22,908

1.60%, 9/24/18(2) 22,000 21,830

1.61%, 10/29/18(2) 17,000 16,842

2.00%, 11/20/18(2) 20,000 19,745

1.83%, 1/4/19(2) 12,000 11,833

FFCB Notes,

(Floating, ICE LIBOR USD 1M -0.07%) 1.59%, 4/1/18(3) 35,000 35,000



(Floating, U.S. Federal Funds -0.01%) 1.67%, 4/2/18(3) 75,000 74,989

(Floating, U.S. Federal Funds +0.02%) 1.70%, 4/2/18(3) 8,000 7,999







PRINCIPALAMOUNT

(000S)VALUE(000S)

U . S . G OV E R N M E N T AG E N C I E S - 4 2 . 3 % ( 1 ) c o n t i n u e d

Federal Farm Credit Bank – 7.5% continued

(Floating, ICE LIBOR USD 1M +0.11%) 1.85%, 4/12/18(3) $9,000 $9,000









1,196,662

Federal Home Loan Bank – 32.1%

FHLB Bonds,

0.88%, 6/29/18 52,000 51,947

0.63%, 8/7/18 40,000 39,907

1.25%, 8/7/18 22,950 22,948

FHLB Discount Notes,

1.60%, 4/13/18(2) 15,000 14,992

1.62%, 4/27/18(2) 65,000 64,925

1.59%, 4/30/18(2) 90,000 89,885

1.56%, 5/11/18(2) 25,000 24,957

1.73%, 5/11/18(2) 85,000 84,836

1.64%, 5/18/18(2) 50,000 49,893

1.66%, 5/18/18(2) 25,000 24,947

1.65%, 5/23/18(2) 101,000 100,759

1.68%, 5/25/18(2) 125,000 124,687

1.26%, 6/1/18(2) 32,000 31,932

1.27%, 6/1/18(2) 6,000 5,987

1.55%, 6/12/18(2) 55,000 54,823

1.72%, 6/13/18(2) 220,000 219,237

1.51%, 6/14/18(2) 415,000 413,720

1.52%, 6/14/18(2) 263,000 262,189

1.64%, 6/15/18(2) 145,000 144,496

1.79%, 6/15/18(2) 150,000 149,441

1.27%, 8/2/18(2) 15,000 14,936

1.27%, 8/3/18(2) 104,000 103,552


U . S . G OV E R N M E N T M O N E Y M A R K E T F U N D



PRINCIPALAMOUNT

(000S)VALUE(000S)


Federal Home Loan Bank – 32.1% continued

FHLB Notes,

(Floating, ICE LIBOR USD 1M -0.15%) 1.52%, 4/1/18(3) $150,000 $150,000























PRINCIPALAMOUNT

(000S)VALUE(000S)








5,131,994

Federal Home Loan Mortgage Corporation – 2.1%

FHLMC Bonds,

1.06%, 6/22/18 160,000 159,916

FHLMC Notes,



342,916

Federal National Mortgage Association – 0.6%

FNMA Bonds,

0.88%, 5/21/18 96,000 95,950

Total U.S. Government Agencies

(Cost $6,767,522) 6,767,522

U . S . G OV E R N M E N T O B L I GAT I O N S – 17.1 %

U.S. Treasury Bills – 4.1%

1.26%, 5/3/18(2) 135,000 134,849

1.47%, 5/10/18(2) 260,000 259,577

1.63%, 6/7/18(2) 85,000 84,737

1.90%, 9/6/18(2) 105,000 104,136

1.89%, 9/27/18(2) 65,000 64,388

647,687

U.S. Treasury Floating Rate Notes – 4.3%

(Floating, U.S. Treasury 3M BillMMY + 0.00%) 1.77%,4/2/18(3) 70,000 69,937


(Floating, U.S. Treasury 3M BillMMY + 0.14%) 1.91%, 4/2/18(3) 150,000 149,986

MARCH 31, 2018



PRINCIPALAMOUNT

(000S)VALUE(000S)

U . S . G OV E R N M E N T O B L I GAT I O N S - 17.1 % c o n t i n u e d

U.S. Treasury Floating Rate Notes – 4.3% continued

(Floating, U.S. Treasury 3M BillMMY + 0.17%) 1.94%, 4/2/18(3) $106,000 $105,993


691,948

U.S. Treasury Notes – 8.7%

1.13%, 6/15/18 183,000 182,935

1.00%, 8/15/18 156,000 155,834

0.75%, 8/31/18 100,000 99,766

1.50%, 8/31/18 212,000 212,091

0.75%, 10/31/18 225,000 223,430

1.25%, 10/31/18 155,000 154,371

1.75%, 10/31/18 65,000 64,932

1.25%, 11/15/18 34,000 33,940

1.25%, 11/30/18 126,000 125,751

1.38%, 11/30/18 88,000 87,846

1.13%, 1/15/19 50,000 49,742

1,390,638

Total U.S. Government Obligations

(Cost $2,730,273) 2,730,273


( $9,497,795) 9,497,795

R E P U RC H A S E AG R E E M E N T S – 41. 9 %

Joint Repurchase Agreements – 0.4%(5) (6)

Bank of America Securities LLC, dated3/30/18, repurchase price $32,710

1.40%, 4/6/18 32,700 32,700

Societe Generale, New York Branch,dated 3/30/18, repurchase price$32,712

1.74%, 4/6/18 32,701 32,701

65,401

Repurchase Agreements – 41.5%(7)

Bank of America N.A., dated3/29/18, repurchase price$450,091

1.81%, 4/2/18 450,000 450,000

Barclays Capital, Inc., dated 3/29/18,repurchase price $150,029

1.75%, 4/2/18 150,000 150,000

PRINCIPALAMOUNT

(000S)VALUE(000S)

R E P U RC H A S E AG R E E M E N T S - 41. 9 % c o n t i n u e d

Repurchase Agreements – 41.5% (7) continued

BNP Paribas S.A., dated 3/22/18,repurchase price $475,726

1.72%, 4/23/18 $475,000 $475,000

BNY Mellon Capital Markets LLC,dated 3/29/18, repurchase price$550,108

1.77%, 4/2/18 550,000 550,000

Citigroup Global Markets, Inc., dated3/29/18, repurchase price$109,359

1.80%, 4/2/18 109,337 109,337

Citigroup Global Markets, Inc., dated3/29/18, repurchase price $7,397

1.78%, 4/2/18 7,396 7,396

Deutsche Bank A.G., dated 3/29/18,repurchase price $435,087

1.80%, 4/2/18 435,000 435,000

Goldman Sachs & Co., dated3/29/18, repurchase price$315,063

1.78%, 4/2/18 315,000 315,000

ING Financial Markets LLC, dated3/29/18, repurchase price$1,000,197

1.77%, 4/2/18 1,000,000 1,000,000

RBC Capital Markets LLC, dated3/29/18, repurchase price$250,086

1.76%, 4/5/18 250,000 250,000

RBS Securities, Inc., dated 3/28/18,repurchase price $1,250,415

1.71%, 4/4/18 1,250,000 1,250,000

RBS Securities, Inc., dated 3/29/18,repurchase price $250,084

1.72%, 4/5/18 250,000 250,000


1.75%, 4/2/18 500,000 500,000


U . S . G OV E R N M E N T M O N E Y M A R K E T F U N D c o n t i n u e d



PRINCIPALAMOUNT

(000S)VALUE(000S)

R E P U RC H A S E AG R E E M E N T S - 41. 9 % c o n t i n u e d

Repurchase Agreements – 41.5% (7) continued


1.76%, 4/2/18 $900,000 $900,000

6,641,733


(Cost $6,707,134) 6,707,134


(Cost $16,204,929)(8) 16,204,929


NET ASSETS – 100.0% $15,995,919

(1) The obligations of certain U.S. government-sponsored entities are neitherissued nor guaranteed by the United States Treasury.

(2) Discount rate at the time of purchase.(3) Variable rate security. Rate as of March 31, 2018 is disclosed. Maturity date


(4) Variable rate security. Rate as of March 31, 2018 is disclosed.(5) Interest rates are reset daily and interest is payable monthly. Rates are

determined based on technical market conditions, which currently are drivenby supply and demand.

(6) The nature and terms of the collateral received for the joint repurchaseagreements are as follows:

NAME

FAIRVALUE(000S)

COUPONRATES

MATURITYDATES

U.S. Treasury Bonds $33,344 3.00% 11/15/45

U.S. Treasury Notes $33,438 0.13% 4/15/19

Total $66,782

(7) The nature and terms of the collateral received for the repurchase agreementsare as follows:

NAME

FAIRVALUE(000S)

COUPONRATES

MATURITYDATES

FHLB $99,320 1.04% — 5.50% 12/14/18 — 8/23/41

FHLMC $468,992 0.88% — 10.00% 5/1/18 — 3/1/48

FNMA $1,192,004 0.88% — 7.00% 5/21/18 — 8/1/56

GNMA $872,278 2.38% — 7.50% 1/15/19 — 3/20/48

U.S. Treasury Bills $388,075 0.00% 4/26/18 — 2/28/19

U.S. Treasury Bonds $847,589 0.00% — 8.88% 5/15/18 — 2/15/48

U.S. Treasury Notes $2,932,093 0.00% — 3.75% 3/31/18 — 11/15/27

Total $6,800,351

(8) The cost for federal income tax purposes was approximately$16,204,929,000.





LEVEL 1(000S)

LEVEL 2(000S)

LEVEL 3(000S)

TOTAL(000S)

Investments held by

U.S. Government Money

Market Fund(1) $— $16,204,929 $— $16,204,929




EXPLANATION OF ABBREVIATIONS AND ACRONYMS USED THROUGHOUTTHE SCHEDULE OF INVESTMENTS:

1M - 1 Month

3M - 3 Month

FFCB - Federal Farm Credit Bank




GNMA - Government National Mortgage Association


MMY - Money Market Yield

USD - United States Dollar

MARCH 31, 2018



PRINCIPALAMOUNT

(000S)VALUE(000S)

U . S . G OV E R N M E N T AG E N C I E S – 4 8 . 8 % ( 1 )

Federal Farm Credit Bank – 13.4%

FFCB Bonds,

1.03%, 5/11/18 $15,000 $14,988

1.23%, 7/27/18 3,000 3,000

1.25%, 8/10/18 11,000 10,999

FFCB Discount Notes,

1.52%, 4/2/18(2) 40,000 39,998

1.26%, 4/12/18(2) 1,000 1,000

1.26%, 4/18/18(2) 1,000 999

1.26%, 4/24/18(2) 3,000 2,998

1.25%, 5/7/18(2) 4,000 3,995

1.27%, 5/9/18(2) 2,000 1,997

1.25%, 5/31/18(2) 8,000 7,984

1.25%, 6/4/18(2) 5,000 4,989

1.67%, 6/5/18(2) 7,000 6,979

1.27%, 6/7/18(2) 3,000 2,993

1.30%, 6/15/18(2) 11,000 10,971

1.26%, 6/19/18(2) 3,000 2,992

1.27%, 6/27/18(2) 4,000 3,988

1.27%, 7/12/18(2) 2,000 1,993

1.28%, 7/16/18(2) 2,000 1,992

1.53%, 7/16/18(2) 10,000 9,955

1.26%, 7/25/18(2) 5,000 4,980

1.78%, 7/30/18(2) 5,000 4,971

1.39%, 8/23/18(2) 11,000 10,940

1.60%, 9/24/18(2) 5,000 4,961

1.50%, 10/1/18(2) 10,000 9,925

1.53%, 10/10/18(2) 10,000 9,919

1.61%, 10/29/18(2) 4,000 3,963

2.00%, 11/20/18(2) 5,000 4,936

1.83%, 1/4/19(2) 3,000 2,958

FFCB Notes,







PRINCIPALAMOUNT

(000S)VALUE(000S)


Federal Farm Credit Bank – 13.4% continued

(Floating, U.S. Federal Funds +0.03%) 1.71%, 4/2/18(3) $15,000 $14,999
















507,354

Federal Home Loan Bank – 35.0%

FHLB Bonds,

1.13%, 4/25/18 14,000 13,993

0.88%, 6/29/18 19,000 18,981

0.63%, 8/7/18 10,000 9,977

FHLB Discount Notes,

1.60%, 4/13/18(2) 5,000 4,997

1.61%, 4/18/18(2) 15,000 14,989

1.59%, 4/27/18(2) 55,000 54,936

1.61%, 4/27/18(2) 25,000 24,971

1.62%, 4/27/18(2) 100,000 99,884

1.59%, 4/30/18(2) 35,000 34,955

1.60%, 5/2/18(2) 35,000 34,952


U . S . G OV E R N M E N T S E L E C T M O N E Y M A R K E T F U N D



PRINCIPALAMOUNT

(000S)VALUE(000S)



1.61%, 5/7/18(2) $65,000 $64,895

1.72%, 5/9/18(2) 30,000 29,945

1.56%, 5/11/18(2) 5,000 4,991

1.64%, 5/18/18(2) 10,000 9,979

1.66%, 5/18/18(2) 5,000 4,989

1.65%, 5/23/18(2) 22,000 21,948

1.68%, 5/25/18(2) 75,000 74,812

1.26%, 6/1/18(2) 7,000 6,985

1.27%, 6/1/18(2) 1,000 998

1.55%, 6/12/18(2) 10,000 9,968

1.26%, 6/13/18(2) 30,000 29,924

1.72%, 6/13/18(2) 50,000 49,827

1.51%, 6/14/18(2) 90,000 89,722

1.52%, 6/14/18(2) 40,000 39,877

1.64%, 6/15/18(2) 30,000 29,896

1.27%, 8/3/18(2) 22,000 21,905

FHLB Notes,















PRINCIPALAMOUNT

(000S)VALUE(000S)















1,323,296

Tennessee Valley Authority – 0.4%

TVA Bonds,

4.50%, 4/1/18 3,000 3,000

1.75%, 10/15/18 11,000 11,013

14,013

Total U.S. Government Agencies

(Cost $1,844,663) 1,844,663

U . S . G OV E R N M E N T O B L I GAT I O N S – 17. 3 %

U.S. Treasury Bills – 5.8%

1.61%, 4/26/18(2) 65,000 64,923

1.26%, 5/3/18(2) 30,000 29,966

1.47%, 5/10/18(2) 60,000 59,903

1.63%, 6/7/18(2) 25,000 24,923

1.90%, 9/6/18(2) 25,000 24,794

1.89%, 9/27/18(2) 15,000 14,859

219,368

MARCH 31, 2018



PRINCIPALAMOUNT

(000S)VALUE(000S)

U . S . G OV E R N M E N T O B L I GAT I O N S - 17. 3 % c o n t i n u e d

U.S. Treasury Floating Rate Notes – 4.6%

(Floating, U.S. Treasury 3M BillMMY + 0.00%) 1.77%,4/2/18(3) $20,000 $19,982






172,001

U.S. Treasury Notes – 6.9%

1.13%, 6/15/18 40,000 39,986

2.25%, 7/31/18 7,000 7,022

1.00%, 8/15/18 31,000 30,967

1.50%, 8/31/18 36,000 36,010

0.75%, 10/31/18 25,000 24,828

1.25%, 10/31/18 15,000 14,941

1.75%, 10/31/18 30,000 29,962

1.25%, 11/15/18 8,000 7,986

1.25%, 11/30/18 33,000 32,935

1.38%, 11/30/18 23,000 22,959

1.13%, 1/15/19 12,000 11,938

259,534

Total U.S. Government Obligations

(Cost $650,903) 650,903


( $2,495,566) 2,495,566

R E P U RC H A S E AG R E E M E N T S – 3 5 . 2 % ( 5 )

Repurchase Agreements – 35.2%

Bank of America N.A., dated3/29/18, repurchase price$290,058

1.81%, 4/2/18 290,000 290,000

Bank of Nova Scotia, dated 3/29/18,repurchase price $650,126

1.75%, 4/2/18 650,000 650,000

PRINCIPALAMOUNT

(000S)VALUE(000S)

R E P U RC H A S E AG R E E M E N T S - 3 5 . 2 % ( 5 ) c o n t i n u e d

Repurchase Agreements – 35.2% continued

Citigroup Global Markets, Inc., dated3/29/18, repurchase price$30,006

1.78%, 4/2/18 $30,000 $30,000

JPMorgan Securities LLC, dated3/29/18, repurchase price$125,025

1.79%, 4/2/18 125,000 125,000

JPMorgan Securities LLC, dated3/29/18, repurchase price$165,032

1.77%, 4/2/18 165,000 165,000

Mizuho Securities USA, Inc., dated3/29/18, repurchase price $70,014

1.81%, 4/2/18 70,000 70,000

1,330,000


(Cost $1,330,000) 1,330,000


(Cost $3,825,566)(6) 3,825,566


NET ASSETS – 100.0% $3,778,047

(1) The obligations of certain U.S. government-sponsored entities are neitherissued nor guaranteed by the United States Treasury.

(2) Discount rate at the time of purchase.(3) Variable rate security. Rate as of March 31, 2018 is disclosed. Maturity date


(4) Variable rate security. Rate as of March 31, 2018 is disclosed.(5) The nature and terms of the collateral received for the repurchase agreements

are as follows:

NAME

FAIRVALUE(000S)

COUPONRATES

MATURITYDATES

FHLMC $34,375 4.50% 2/1/48—4/1/48

FNMA $164,336 2.41%—4.50% 1/1/21—3/1/48

GNMA $300,840 3.00%—5.00% 10/20/46—2/20/48

U.S. Treasury Bills $9,112 0.00% 6/14/18—1/31/19

U.S. Treasury Bonds $111,642 0.63%—4.38% 1/15/27—8/15/47

U.S. Treasury Notes $741,148 0.13%—2.25% 3/31/18—1/15/27

Total $1,361,453


U . S . G OV E R N M E N T S E L E C T M O N E Y M A R K E T F U N D c o n t i n u e d



(6) The cost for federal income tax purposes was approximately$3,825,566,000.





LEVEL 1(000S)

LEVEL 2(000S)

LEVEL 3(000S)

TOTAL(000S)

Investments held byU.S. Government SelectMoney Market Fund(1) $— $3,825,566 $— $3,825,566




EXPLANATION OF ABBREVIATIONS AND ACRONYMS USED THROUGHOUTTHE SCHEDULE OF INVESTMENTS:

1M - 1 Month

3M - 3 Month

FFCB - Federal Farm Credit Bank




GNMA - Government National Mortgage Association


MMY - Money Market Yield

TVA - Tennessee Valley Authority

USD - United States Dollars

MARCH 31, 2018



1. O RGA N I Z AT I O N

Northern Funds (the “Trust”) is a Delaware statutory trust and isregistered under the Investment Company Act of 1940, asamended (the “1940 Act”), as an open-end managementinvestment company. The Trust offers 44 funds as of March 31,2018, each with its own investment objective (e.g., long-termcapital appreciation, total return or income consistent withpreservation of capital). The Money Market, Municipal MoneyMarket, U.S. Government Money Market and U.S. GovernmentSelect Money Market Funds (each a “Fund” and collectively, the“Funds”) are separate, diversified investment portfolios of theTrust. Each of the Funds is presented herein.

Northern Trust Investments, Inc. (“NTI”), a subsidiary of TheNorthern Trust Company (“Northern Trust”), serves as theinvestment adviser and administrator for each of the Funds.Northern Trust serves as the custodian, transfer agent andsub-administrator for the Trust. Northern Funds Distributors,LLC is the Trust’s distributor.

The Money Market Fund and Municipal Money Market Fundseek to qualify as retail money market funds in accordance withcriteria established by the U.S. Securities and ExchangeCommission (“SEC”). The U.S. Government Money Market Fundand the U.S. Government Select Money Market Fund seek toqualify as government money market funds in accordance withcriteria established by the SEC.

2 . S I G N I F I C A N T AC C O U N T I N G P O L I C I E S

The Trust, which is an investment company, follows accountingand reporting guidance under Financial Accounting StandardsBoard (“FASB”) Accounting Standards Codification Topic 946,Financial Services-Investment Companies.

The following is a summary of significant accounting policiesconsistently followed by the Funds in the preparation of theirfinancial statements. These policies are in conformity withaccounting principles generally accepted in the United States ofAmerica (“U.S. GAAP”). The preparation of financial statementsin conformity with U.S. GAAP requires management to makeestimates and assumptions that affect the reported amounts ofassets and liabilities and disclosure of contingent assets andliabilities at the date of the financial statements and the reportedamounts of revenues and expenses during the reporting period.Actual results may differ from those estimates.

A) VALUATION OF SECURITIES The investments held by the Fundsare valued at amortized cost, which NTI, as authorized by theTrust’s Board of Trustees (the “Board”), has determinedapproximates fair value. Under this method, investmentspurchased at a discount or premium are valued by accreting oramortizing the difference between the original purchase price andmaturity value of the issue over the period to effective maturity.

If NTI has determined that amortized cost does not approximatefair value, such securities are fair valued in accordance withpolicies and procedures established by, and subject to oversight of,the Funds’ Board. NTI has established a pricing and valuationcommittee (the “Asset Management PVC”) whose membershipincludes representatives of NTI. The Asset Management PVC isresponsible for the fair valuation of portfolio securities and themonitoring of the fair valuation process, subject to the Board’soversight.

In making its determination of fair value of a security, the AssetManagement PVC considers factors that it deems appropriate tothe determination of the fair value of the security. Such factorsinclude, but are not limited to: the type of security; the currentfinancial position of the issuer; the cost of the investment;information as to any transactions or offers with respect to asecurity; market value of a similar freely-traded security; and newsevents. NTI will continue to monitor markets and the issuer’scircumstances that affect a security’s valuation to determine thecontinued appropriateness of a security’s fair valuation. The AssetManagement PVC will review if the markets and issuer’scircumstances relevant to the valuation of a fair valued securitychange materially.

For each Level 3 security, if any, that has been fair valued pursuantto the policies adopted by the Board, the fair value price iscompared against the last available and next available marketquotations.

B) CREDIT ENHANCEMENTS Certain investments owned by theFunds (primarily the Money Market Fund and Municipal MoneyMarket Fund) are covered by insurance issued by private insurers,are backed by an escrow or trust containing U.S. Governmentsecurities or U.S. Government agency securities, or are otherwisesupported by letters of credit, standby purchase agreements orother liquidity facilities. Such enhancements may ensure thetimely payment of the security’s principal and interest or mayshorten the security’s maturity. However, such enhancements donot guarantee the market value of the securities or the value of aFund’s shares. Additionally, there is no guarantee that an insurerwill meet its obligations. For example, an insurer’s exposure tosecurities involving sub-prime mortgages may cause a municipalbond insurer’s rating to be downgraded or may cause the bondinsurer to become insolvent, which may affect the prices andliquidity of municipal obligations insured by the insurer.

C) REPURCHASE AGREEMENTS The Funds may enter intorepurchase agreements under the terms of a master repurchaseagreement by which the Funds purchase securities for cash from aseller and agree to resell those securities to the same seller at aspecific price within a specified time or with an indefinite life andliquidity feature, which allows the Funds to resell the securitiesquarterly. The interest rate on such repurchase agreements resetsdaily. During the term of a repurchase agreement, the fair value ofthe underlying collateral, including accrued interest, is required toequal or exceed the fair value of the repurchase agreement. The


N OT E S TO T H E F I N A N C I A L S TAT E M E N T S


underlying collateral for tri-party repurchase agreements is heldin accounts for Northern Trust, as agent of the Funds, at The Bankof New York Mellon or JPMorgan Chase which, in turn, holdssecurities through the book-entry system at the Federal ReserveBank of New York. The underlying collateral for other repurchaseagreements is held in a customer-only account for Northern Trust,as custodian for the Funds, at the Federal Reserve Bank ofChicago. The Funds are subject to credit risk on repurchaseagreements to the extent that the counterparty fails to performunder the agreement and the value of the collateral received fallsbelow the agreed repurchase price. If the seller defaults and thevalue of the collateral declines or if bankruptcy proceedings arecommenced with respect to the seller of the security, realization ofcollateral by the Funds may be delayed or limited. Certain Fundshave entered into such repurchase agreements at March 31, 2018,as reflected in their accompanying Schedule of Investments.

Pursuant to exemptive relief granted by the SEC, U.S. Gov-ernment Money Market Fund and certain other money marketportfolios advised by NTI and Northern Trust may enter into jointrepurchase agreements with non-affiliated counterparties througha master repurchase agreement. NTI administers and manages

these joint repurchase agreements in accordance with and as partof its duties under its management agreements with the Fundsand does not collect any additional fees from the Funds for suchservices. The U.S. Government Money Market Fund has enteredinto such joint repurchase agreements at March 31, 2018, asreflected in its accompanying Schedule of Investments.

The Funds may enter into transactions subject to enforceablenetting arrangements (“Netting Arrangements”) under arepurchase agreement. Generally, Netting Arrangements allow theFunds to offset any exposure to a specific counterparty with anycollateral received or delivered to that counterparty. In addition,Netting Arrangements provide the right for the non-defaultingparty to liquidate the collateral and calculate the net exposure tothe defaulting party or request additional collateral. Generally, theFunds manage their cash collateral and securities collateral on acounterparty basis. As of March 31, 2018, the Funds have notinvested in any portfolio securities other than the repurchaseagreements described below, with gross exposures on theStatement of Assets and Liabilities, that could be netted subject tonetting agreements.

The following tables present the repurchase agreements, which are subject to Netting Arrangements, as well as the collateral deliveredrelated to those repurchase agreements.

Amounts in thousandsGROSS AMOUNTS NOT OFFSET IN THESTATEMENTS OF ASSETS AND LIABILITIES

COUNTERPARTY

GROSS AMOUNTS OF ASSETSPRESENTED IN STATEMENTS OF

ASSETS AND LIABILITIESFINANCIAL

INSTRUMENTSNET

AMOUNT*

Money Market Fund Citigroup $ 6,516 $ (6,516) $ —

Total $ 6,516 $ (6,516) $ —

U.S. Government Money Market Bank of America $ 482,700 $ (482,700) $ —

Barclays 150,000 (150,000) —

BNP Paribas 475,000 (475,000) —

BNY Mellon 550,000 (550,000) —

Citigroup 116,733 (116,733) —

Deutsche Bank 435,000 (435,000) —

Goldman Sachs 315,000 (315,000) —

ING 1,000,000 (1,000,000) —

RBC Capital 250,000 (250,000) —

RBS Securities 2,900,000 (2,900,000) —

Societe Generale 32,701 (32,701) —

Total $ 6,707,134 $ (6,707,134) $ —


MARCH 31, 2018


Amounts in thousandsGROSS AMOUNTS NOT OFFSET IN THESTATEMENTS OF ASSETS AND LIABILITIES

COUNTERPARTY

GROSS AMOUNTS OF ASSETSPRESENTED IN STATEMENTS OF

ASSETS AND LIABILITIESFINANCIAL

INSTRUMENTSNET

AMOUNT*

U.S. Government Select Money Market Bank of America $ 290,000 $ (290,000) $ —

Bank of Nova Scotia 650,000 (650,000) —

Citigroup 30,000 (30,000) —

JPMorgan 290,000 (290,000) —

Mizuho 70,000 (70,000) —

Total $1,330,000 $(1,330,000) $ —

* Collateral received is reflected up to the fair value of the repurchase agreement. Refer to the Schedules of Investments.

D) INVESTMENT TRANSACTIONS AND INCOME Investmenttransactions are recorded as of the trade date. The Fundsdetermine the gain or loss realized from investment transactionsby using an identified cost basis method. Interest income, if any, isrecognized on an accrual basis and includes amortization ofpremiums and accretion of discounts. Certain Funds may receivedividend income, if any, from investment companies. Dividendincome is recognized on the ex-dividend date. The MunicipalMoney Market Fund’s income may be subject to certain state andlocal taxes and, depending on an individual shareholder’s taxstatus, the federal alternative minimum tax.

E) EXPENSES Each Fund is charged for those expenses that aredirectly attributable to that Fund. Expenses incurred which do notspecifically relate to an individual Fund generally are allocatedamong all Funds in the Trust in proportion to each Fund’s relativenet assets.

F) LIQUIDITY FEES AND REDEMPTION GATES For the MoneyMarket Fund and Municipal Money Market Fund only, each Fundmay impose a liquidity fee of up to 2 percent on redemptionsfrom the Fund or temporarily restrict redemptions from the Fundfor up to 10 business days in any given 90-day period (a“redemption gate”) in the event that the Fund’s weekly liquidassets fall below the following thresholds:

30 percent weekly liquid assets – If a Fund’s weekly liquid assets fallbelow 30 percent of the Fund’s total assets as of the end of abusiness day, and the Board determines it is in the best interests ofthe Fund, the Board may impose a liquidity fee of no more than 2percent of the amount redeemed and/or a redemption gate thattemporarily suspends the right of redemption. Liquidity feesand/or redemption gates may be implemented as early as the samebusiness day that the weekly liquid assets of the Fund fall below 30percent of the total assets.

10 percent weekly liquid assets – If a Fund’s weekly liquid assets fallbelow 10 percent of the Fund’s total assets as of the end of abusiness day, the Fund will impose, at the beginning of the nextbusiness day, a liquidity fee of 1 percent of the amount redeemed,unless the Board determines that imposing such a fee would not

be in the best interests of the Fund or determines that a lower orhigher fee (not to exceed 2 percent) would be in the best interestof the Fund.

If a Fund imposes a redemption gate, the Fund and the Fund’sauthorized intermediaries will not accept redemption orders untilthe Fund has notified shareholders that the redemption gate hasbeen lifted.

Liquidity fees and redemption gates may be terminated at anytime at the discretion of the Board. In addition, liquidity fees andredemption gates will terminate at the beginning of the nextbusiness day once the Fund has invested 30 percent or more of itstotal assets in weekly liquid assets. A Fund may only suspendredemptions for up to 10 business days in any 90-day period.

Liquidity fees would generally be used to assist the Funds to stemredemptions during times of market stress.

A liquidity fee imposed by a Fund will reduce the amount you willreceive upon the redemption of your shares, and will generallydecrease the amount of any capital gain or increase the amount ofany capital loss you will recognize with respect to the redemption.

If a Fund’s weekly liquid assets fall below 10 percent of the Fund’stotal assets, the Fund reserves the right to permanently suspendredemptions and liquidate if the Board determines that it is not inthe best interests of the Fund to continue operating.

Liquidity fees, if any, are included in “Payments for SharesRedeemed” in Note 7—Capital Share Transactions. No liquidityfees or redemption gates were imposed by the Money MarketFund or Municipal Money Market Fund during the fiscal yearended March 31, 2018.

G) DISTRIBUTIONS TO SHAREHOLDERS Distribution of dividendsfrom net investment income are declared daily and paid monthly.Distributions of net realized capital gains, if any, are declared andpaid at least annually. Distributions to shareholders are recordedon the ex-dividend date.


N OT E S TO T H E F I N A N C I A L S TAT E M E N T S c o n t i n u e d


The timing and character of distributions determined inaccordance with federal income tax regulations may differ fromfinancial statement amounts determined in accordance with U.S.GAAP due to differences in the treatment and recognition ofinvestment income and realized gains and losses. These differencesare primarily related to the capital loss carryforwards. Inherentdifferences in the recognition of income and capital gains forfederal income tax purposes, which are permanent, may result inperiodic reclassifications in the Funds’ capital accounts. Thesereclassifications may relate to net operating losses and expiredcapital loss carryforwards. These reclassifications have no impacton the net assets or the net asset value (“NAV”) of the Funds.

At March 31, 2018, the following reclassifications were recorded:

Amounts in thousands

ACCUMULATEDUNDISTRIBUTED

NET INVESTMENTINCOME (LOSS)

ACCUMULATEDUNDISTRIBUTEDNET REALIZEDGAIN (LOSS)

CAPITALSTOCK

Money Market $110 $(110) $ —

Municipal Money Market — 1 (1)

U.S. Government MoneyMarket 38 (38) —

U.S. Government Select MoneyMarket 40 (40) —

H) FEDERAL INCOME TAXES No provision for federal income taxeshas been made since each Fund’s policy is to comply with therequirements of Subchapter M of the Internal Revenue Code of1986, as amended, applicable to regulated investment companiesand to distribute, each year, substantially all of its taxable incomeand tax-exempt income to its shareholders.

The Regulated Investment Company Modernization Act of 2010(the “Act”) allows capital losses to be carried forward for anunlimited period and to retain their character as either short-termor long-term. The Fund’s ability to utilize capital loss carry-forwards in the future may be limited under the Internal RevenueCode and related regulations based on the results of futuretransactions.

Capital losses incurred that will be carried forward indefinitelyunder the provisions of the Act are as follows:

Amounts in thousands

SHORT-TERMCAPITAL LOSS

CARRYFORWARD

LONG-TERMCAPITAL LOSS

CARRYFORWARD

Municipal Money Market $66 $ —

At March 31, 2018, the tax components of undistributed netinvestment income and realized gains, including amountsdeclared but not yet paid for federal income tax purposes, were asfollows:

UNDISTRIBUTED

Amounts in thousandsTAX-EXEMPT

INCOMEORDINARYINCOME*

LONG-TERMCAPITAL GAINS

Money Market $ — $ 366 $ —

Municipal Money Market 702 — —

U.S. Government Money Market — 16,363 —

U.S. Government Select MoneyMarket — 3,902 —

* Ordinary income includes taxable market discount income andshort-term capital gains, if any.

The tax character of distributions paid during the fiscal yearended March 31, 2018, was as follows:

DISTRIBUTIONS FROM




Money Market $ — $ 2,008 $ —

Municipal Money Market 3,461 — —




The tax character of distributions paid during the fiscal yearended March 31, 2017, was as follows:

DISTRIBUTIONS FROM




Money Market $ — $ 9,311 $ 71

Municipal Money Market 2,750 208 622




As of March 31, 2018, no Fund had uncertain tax positions thatwould require financial statement recognition or disclosure. TheFunds’ federal tax returns remain subject to examination by theInternal Revenue Service for three years after they are filed.Interest or penalties incurred, if any, on future unknown,uncertain tax positions taken by the Funds will be recorded asinterest expense and other expenses, respectively, on theStatements of Operations.


MARCH 31, 2018


3 . S E RV I C E P L A N

The Trust has adopted a Service Plan pursuant to which the Trustmay enter into agreements with Northern Trust, its affiliates orother institutions (together “Service Organizations”) under whichthe Service Organizations agree to provide certain administrativesupport services and, in some cases, personal and accountmaintenance services for their customers, who are beneficialowners of shares of the Funds. As compensation for servicesprovided pursuant to the Service Plan, the Service Organizationsreceive a fee at an annual rate of up to 0.15 percent of the averagedaily net assets of the Funds beneficially owned by theircustomers. There were no shareholder servicing fees paid by theFunds to Northern Trust or its affiliates during the fiscal yearended March 31, 2018.

Service Plan expenses are included in the Statements ofOperations under Shareholder servicing fees for the fiscal yearended March 31, 2018.

4 . BA N K B O R ROW I N G S

The Trust and Northern Institutional Funds jointly entered into a$250,000,000 senior unsecured revolving credit facility onNovember 21, 2016, which expired on November 20, 2017 andwas administered by Citibank, N.A., for liquidity and otherpurposes (the “Credit Facility”). The interest rate charged underthe Credit Facility was equal to the sum of (i) the Federal FundsRate plus (ii) if the one month London Interbank Offered Rate(“LIBOR”) on the date of borrowing exceeded such Federal FundsRate, the amount by which it so exceeded, plus (iii) 1.00 percent.In addition, there was an annual commitment fee of 0.15 percenton the unused portion of the credit line under the Credit Facility,payable quarterly in arrears, which is included in Other expenseson the Statements of Operations.

At a meeting held on November 15-16, 2017, the Board approvedan agreement to replace the Credit Facility (as replaced, the “NewCredit Facility”). The New Credit Facility is also in the amount of$250,000,000 and is also administered by Citibank, N.A. Theinterest rate charged under the New Credit Facility is the same asit was for the Credit Facility. In addition, there is an annualcommitment fee of 0.15 percent on the unused portion of thecredit line under the New Credit Facility, payable quarterly inarrears. The New Credit Facility went into effect on November 20,2017 and will expire on November 19, 2018, unless renewed.

The Funds did not have any borrowings or incur any interestexpense for the fiscal year ended March 31, 2018.

5 . M A N AG E M E N T A N D OT H E R AG R E E M E N T S

As compensation for advisory and administration services and theassumption of related expenses, NTI is entitled to a managementfee, computed daily and payable monthly, at annual rates set forthin the table below (expressed as a percentage of each Fund’srespective average daily net assets).

NTI has contractually agreed to reimburse a portion of theoperating expenses of each Fund (other than certain exceptedexpenses, i.e., acquired fund fees and expenses, the compensationpaid to each independent Trustee of the Trust, expenses ofthird-party consultants engaged by the Board, membership duespaid to the Investment Company Institute and Mutual FundDirectors Forum, expenses in connection with the negotiationand renewal of the revolving credit facility, extraordinary expensesand interest) as shown on the accompanying Statements ofOperations, to adhere to the expense limitations set forth below.The total annual fund operating expenses after expensereimbursement for each Fund may be higher than the contractuallimitation as a result of certain excepted expenses that are notreimbursed. The amount of the reimbursement is included in Lessexpenses reimbursed by investment adviser as a reduction to TotalExpenses in the Statements of Operations.

At March 31, 2018, the annual management fees and contractualexpense limitations for the Funds were based on the followingannual rates as set forth in the tables below.

CONTRACTUAL

ANNUALMANAGEMENT FEE

EXPENSELIMITATIONS

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%

The contractual reimbursement arrangements described above areexpected to continue until at least July 31, 2018. The contractualreimbursement arrangements will continue automatically forperiods of one year (each such one-year period, a “Renewal Year”).The arrangement may be terminated, as to any succeedingRenewal Year, by NTI or a Fund upon 60 days’ written notice priorto the end of the current Renewal Year. The Board may terminatethe contractual arrangements at any time with respect to a Fund ifit determines that it is in the best interest of the Fund and itsshareholders.

NTI may reimburse additional expenses or waive all or a portionof the management fees of a Fund from time to time, including toavoid a negative yield. Any such additional expense reim-bursement or waiver would be voluntary and could beimplemented, increased or decreased or discontinued at any time.There is no guarantee that a Fund will be able to avoid a negativeyield. During the fiscal year ended March 31, 2018, NTIvoluntarily reimbursed fees for the Money Market Fund andMunicipal Money Market Fund. The amounts voluntarilyreimbursed by NTI are included in Less expenses voluntarilyreimbursed by investment adviser in the Statements ofOperations, and the amounts outstanding at March 31, 2018 are


N OT E S TO T H E F I N A N C I A L S TAT E M E N T S c o n t i n u e d


included as part of Receivable from affiliates for expensereimbursements in the Statements of Assets and Liabilities. Anysuch reimbursement or waiver is paid monthly to the Funds byNTI.

As compensation for services rendered as transfer agent, includingthe assumption by Northern Trust of the expenses related thereto,Northern Trust receives a fee, computed daily and payablemonthly, at an annual rate of 0.015 percent of the average dailynet assets outstanding for each of the Funds.

NTI has entered into a sub-administration agreement withNorthern Trust, pursuant to which Northern Trust performscertain administrative services for the Funds. NTI pays NorthernTrust for its sub-administration services out of NTI’s managementfees.

For compensation as custodian, Northern Trust receives anamount based on a pre-determined schedule of charges approvedby the Board of Trustees. The Funds have entered into an expenseoffset arrangement with the custodian whereby credits realized asa result of uninvested cash balances are used to reduce a portionof the Funds’ custodian expenses. Custodian credits are reflectedas 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 distributionagreement. However, it received compensation from NTI for itsservices as distributor pursuant to a separate letter agreementbetween it and NTI.

Certain officers of the Trust are also officers of Northern Trustand NTI. All officers serve without compensation from the Funds.The Trust provided a deferred compensation plan for its Trusteeswho are not officers of Northern Trust or NTI. Prior to August 22,2013, under the deferred compensation plan, Trustees may haveelected to defer all or a portion of their compensation. EffectiveAugust 22, 2013, the Trustees may no longer defer theircompensation. Any amounts deferred and invested under the planshall remain invested pursuant to the terms of the plan. EachTrustee’s account shall be deemed to be invested in shares of theU.S. Government Portfolio of Northern Institutional Fundsand/or the Global Tactical Asset Allocation Fund of the Trustand/or at the discretion of the Trust, a money market fundselected by the Trust that complies with the provisions ofRule 2a-7 under the 1940 Act or one or more short-term fixed

income instruments selected by the Trust that are “eligiblesecurities” as defined by that rule. The net investment income,gains and losses achieved by such deemed investment shall becredited to the Trustee’s account as provided in the plan.

6 . R E L AT E D PA R T Y T R A N SAC T I O N S

The Funds are permitted to purchase and sell securities from or tocertain affiliated funds or portfolios under specified conditionsoutlined in Rule 17a-7 Procedures adopted by the Board. Theprocedures have been designed to ensure that any purchase or saleof securities by a Fund from or to another fund or portfolio that isor could be considered an affiliate by virtue of having a commoninvestment adviser (or affiliated investment advisers), commontrustees and/or common officers complies with Rule 17a-7 of the1940 Act. Further, as defined under these procedures, eachtransaction is effected at the current market price as defined in theRule 17a-7 Procedures. For the fiscal year ended March 31, 2018,the following Funds engaged in purchases and/or sales ofsecurities from an affiliated entity:

Amounts in thousands PURCHASES SALES*

Money Market $ 2,000 $ (25,245)

Municipal Money Market 575,260 (422,720)

* During the fiscal year ended March 31, 2018, the realized gain(loss) associated with these transactions was zero.

On December 15, 2016, Northern Trust Corporation made capitalcontributions of approximately $136,000 and $91,000 to theMoney Market Fund and Municipal Money Market Fund,respectively, in order to maintain the Funds’ NAV at a $1.00 pershare. These contributions were shown on the Money MarketFund’s and Municipal Money Market Fund’s Statements ofChanges in Net Assets and Financial Highlights as “Net increasefrom payment by affiliate” in the annual report for the fiscal yearended March 31, 2017.

Northern Trust will return to the Funds the full amount of thereturn that Northern Trust receives on a Fund’s uninvested cashresulting from Northern Trust client custody sweep, the return isbased on the application of the Federal Reserve’s Interest Rate onExcess Reserves. These amounts are shown on the U.S. Gov-ernment Money Market Fund’s Statements of Operations as�Income from affiliates�.

7. C A P I TA L S H A R E T R A N SAC T I O N S

Transactions in capital shares for the fiscal year ended March 31, 2018, were as follows:

Amounts in thousands*

PROCEEDSFROM

SHARES SOLD

REINVESTMENTOF

DIVIDENDS

PAYMENTSFOR SHARESREDEEMED

NETINCREASE

(DECREASE)IN NET ASSETS

Money Market $ 308,385 $ 1,587 $ (138,450) $ 171,522

Municipal Money Market 1,505,900 722 (833,583) 673,039


MARCH 31, 2018



PROCEEDSFROM

SHARES SOLD

REINVESTMENTOF

DIVIDENDS


NETINCREASE


U.S. Government Money Market $61,850,625 $28,540 $(62,365,198) $(486,033)

U.S. Government Select Money Market 16,601,578 7,101 (16,111,669) 497,010

* The number of shares sold, reinvested and redeemed approximates the dollar amount of transactions.

Transactions in capital shares for the fiscal year ended March 31, 2017, were as follows:


PROCEEDSFROM

SHARES SOLD

REINVESTMENTOF

DIVIDENDS


NETINCREASE


Money Market $ 10,838,074 $1,849 $ (18,237,189) $(7,397,266)

Municipal Money Market 9,444,586 310 (14,901,055) (5,456,159)

U.S. Government Money Market 46,902,533 3,293 (33,783,675) 13,122,151

U.S. Government Select Money Market 15,268,187 972 (15,876,075) (606,916)

* The number of shares sold, reinvested and redeemed approximates the dollar amount of transactions.

8 . I N D E M N I F I C AT I O N S A N D WA R R A N T I E S

In the ordinary course of their business, the Funds may enter intocontracts or agreements that contain indemnifications orwarranties. Future events could occur that lead to the execution ofthese provisions against the Funds. The maximum exposure to theFunds under these provisions is unknown, as this would involvefuture claims that have not yet occurred. However, the Funds havenot had prior claims or losses pursuant to these contracts andbelieve the risk of loss to be remote.

9 . N E W A N D A M E N D E D F I N A N C I A LR E P O R T I N G RU L E S A N D F O R M S

On October 13, 2016, the SEC adopted new rules and forms, andamended existing rules and forms. The new and amended rulesand forms are intended to modernize the reporting ofinformation provided by funds and to improve the quality andtype of information that funds provide to the SEC and investors.In part, the new and amended rules and forms amend RegulationS-X and require standardized, enhanced disclosure aboutderivatives in a Fund’s financial statements, as well as otheramendments. The compliance date for the amendments ofRegulation S-X was August 1, 2017 for reporting periods ended onor after that date while the compliance date for the new formtypes and other rule amendments is on or after June 1, 2018.Management is evaluating the new and amended rules and formsthat are effective on or after June 1, 2018 to determine the impactto the Funds.

10 . S U B S E Q U E N T E V E N T S

Management has evaluated subsequent events for the Fundsthrough the date the financial statements were issued, and hasconcluded that there are no recognized or non-recognizedsubsequent events relevant for financial statement disclosure.


N OT E S TO T H E F I N A N C I A L S TAT E M E N T S c o n t i n u e d MARCH 31, 2018



R E P O R T O F I N D E P E N D E N T R E G I S T E R E D P U B L I C A C C O U N T I N G F I R M

To the Shareholders and Board of Trustees of Northern Funds:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statements of assets and liabilities of four separate portfolios of Northern Funds (the “Funds”)comprising the Money Market Fund, Municipal Money Market Fund, U.S. Government Money Market Fund, and U.S. Govern-ment Select Money Market Fund, including the schedules of investments, as of March 31, 2018, the related statements of operationsfor the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financialhighlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements andfinancial highlights present fairly, in all material respects, the financial position of each of the four portfolios constituting theNorthern Funds as of March 31, 2018, and the results of their operations for the year then ended, the changes in their net assets foreach of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, inconformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to expressan opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm regis-tered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent withrespect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities andExchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform theaudit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstate-ment, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of theirinternal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control overfinancial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over finan-cial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financialhighlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures includedexamining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Ouraudits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluatingthe overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securitiesowned as of March 31, 2018, by correspondence with the custodian, transfer agent, and brokers; when replies were not receivedfrom brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ DELOITTE & TOUCHE LLP

Chicago, IllinoisMay 23, 2018

We have served as the auditor of one or more Northern Trust investment companies since 2002.


During the fiscal year ended March 31, 2018, the percentage ofdividends derived from net investment income paid by each of thefollowing Funds as “exempt-interest dividends,” excludable fromgross income for federal income tax purposes were asfollows: Municipal Money Market 99.99%.

The American Jobs Creation Act (Sec. 871(k)) allows a regulatedinvestment company to designate interest related dividends andqualified short-term capital gains that are exempt from U.S.withholding taxes for foreign investors, not considered a U.S.person as Qualified Interest Income (QII), for tax years afterDecember 31, 2004. The following funds designated QII for thefiscal year ended March 31, 2018: the Money Market Fund,U.S. Government Money Market Fund and the U.S. GovernmentSelect Money Market Fund.

The Funds designate the maximum amount required to bedistributed as long-term capital gain under Internal Revenue CodeSection 852(b)(2)(3).

1. D I S T R I B U T I O N C O N S I D E R AT I O N S ( A L LF U N D S )

DISTRIBUTION CALCULATION: Maturity Distribution is measuredon a trade date basis and excludes uninvested cash from themarket value used to compute the percentage calculations.

MATURITY DISTRIBUTION: The data is measured using the lower ofthe stated maturity date or next interest rate reset date.


TA X A N D D I S T R I B U T I O N I N F O R M AT I O N MARCH 31, 2018 (UNAUDITED)


As a shareholder of the Funds, you incur ongoing costs, includingmanagement fees and other fund expenses. This Example isintended to help you understand your ongoing costs (in dollars)of investing in the Funds and to compare these costs with theongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at thebeginning of the period and held for the entire period, October 1,2017 through March 31, 2018.

AC T UA L E X P E N S E S

The first line of the tables below provides information aboutactual account values and actual expenses. You may use theinformation in this line, together with the amount you invested,to estimate the expenses that you paid over the period. Simplydivide your account value by $1,000 (for example, an $8,600account value divided by $1,000 = 8.6), then multiply the result bythe number in the first line under the heading entitled �ExpensesPaid 10/1/2017 - 3/31/2018� to estimate the expenses you paid onyour account during this period.

H Y P OT H E T I C A L E X A M P L E F O R C O M PA R I S O NP U R P O S E S

The second line in the tables below provides information abouthypothetical account values and hypothetical expenses based onthe Funds’ actual expense ratios and an assumed rate of return of5 percent per year before expenses, which is not the Funds’ actualreturn. The hypothetical account values and expenses may not beused to estimate the actual ending account balance or expensesyou paid for the period. You may use this information to comparethe ongoing costs of investing in the Funds and other funds. To doso, compare this 5 percent hypothetical example with the 5percent hypothetical examples that appear in the shareholderreports of the other funds.

Please note that the expenses shown in the table are meant tohighlight your ongoing costs only and do not reflect anytransaction costs, such as sales charges (loads), redemption fees,or exchange fees, but shareholders of other funds may incur suchcosts. Therefore, the hypothetical information is useful incomparing ongoing costs only, and will not help you determinethe relative total costs of owning different funds.

M O N E Y M A R K E T

SHARESEXPENSE

RATIO

BEGINNINGACCOUNT

VALUE10/1/2017

ENDINGACCOUNT

VALUE3/31/2018

EXPENSESPAID*

10/1/2017-3/31/2018

Actual 0.34% $1,000.00 $1,006.40 $1.70

Hypothetical 0.34% $1,000.00 $1,023.24 $1.72

M U N I C I PA L M O N E Y M A R K E T

SHARESEXPENSE

RATIO

BEGINNINGACCOUNT

VALUE10/1/2017

ENDINGACCOUNT

VALUE3/31/2018

EXPENSESPAID*

10/1/2017-3/31/2018

Actual 0.29% $1,000.00 $1,004.20 $1.45

Hypothetical 0.29% $1,000.00 $1,023.49 $1.46

U . S . G OV E R N M E N T M O N E Y M A R K E T

SHARESEXPENSE

RATIO

BEGINNINGACCOUNT

VALUE10/1/2017

ENDINGACCOUNT

VALUE3/31/2018

EXPENSESPAID*

10/1/2017-3/31/2018

Actual 0.35% $1,000.00 $1,004.70 $1.75

Hypothetical 0.35% $1,000.00 $ 1,023.19 $1.77

U . S . G OV E R N M E N T S E L E C T M O N E Y M A R K E T

SHARESEXPENSE

RATIO

BEGINNINGACCOUNT

VALUE10/1/2017

ENDINGACCOUNT

VALUE3/31/2018

EXPENSESPAID*

10/1/2017-3/31/2018

Actual 0.35% $1,000.00 $1,004.80 $1.75

Hypothetical 0.35% $1,000.00 $ 1,023.19 $1.77*Expenses are calculated using the Funds’ annualized expense ratios, which represent ongoing expenses as a percentage of net assets for the six months ended March 31, 2018. 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 (182); and then dividing that result by the number of days in the current fiscal year (365). Expense ratios for the most recent half year may differ from expense ratios based on one-year data in the Financial Highlights.

* Expenses are calculated using the Funds’ annualized expenseratios, which represent ongoing expenses as a percentage of netassets for the six months ended March 31, 2018. Expenses arecalculated by multiplying the annualized expense ratio by theaverage account value of the period; then multiplying the resultby the number of days in the most recent fiscal half year (182);and then dividing that result by the number of days in thecurrent fiscal year (365). Expense ratios for the most recent halfyear may differ from expense ratios based on one-year data inthe Financial Highlights.


F U N D E X P E N S E S MARCH 31, 2018 (UNAUDITED)



T R U S T E E S A N D O F F I C E R S

Set forth below is information about the Trustees and Officers of Northern Funds. Each Trustee has served in that capacity since heor she was originally elected or appointed to the Board of Trustees. Each Trustee oversees a total of 51 portfolios in the NorthernFunds Complex — Northern Funds offers 44 portfolios and Northern Institutional Funds offers 7 portfolios. The Northern Funds’Statement of Additional Information contains additional information about the Trustees and is available upon request and withoutcharge by calling 800-595-9111.

NON-INTERESTED TRUSTEES

NAME, ADDRESS(1), AGE,POSITIONS HELD WITH FUNDSAND LENGTH OF SERVICE ASNORTHERN FUNDS TRUSTEE(2) PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS

OTHER DIRECTORSHIPSHELD BY TRUSTEE(3)

William L. BaxAge: 74Trustee since 2005

• Managing Partner of PricewaterhouseCoopers, LLP, Chicago (an accountingfirm) from 1997 to 2003;

• Director of Ann & Robert H. Lurie Children’s Hospital since 1998.

• Arthur J. Gallagher & Co.(an insurance brokeragecompany)

Mark G. DollAge: 68Trustee since 2013

• Executive Vice President and Chief Investment Officer, Northwestern MutualLife Insurance Company from 2008 to 2012;

• Senior Vice President — Public Markets, Northwestern Mutual LifeInsurance Company from 2002 to 2008;

• President, Northwestern Mutual Series Fund, Mason Street Advisors andMason Street Funds from 2002 to 2008;

• Chairman, Archdiocese of Milwaukee Finance Council from 2005 to 2015;• Member of Investment Committee of Milwaukee Art Museum from 1995 to

2012;• Member of Investment Committee of Greater Milwaukee Foundation from

2003 to 2015;• Member of Investment Committee of Milwaukee Symphony Orchestra from

2006 to 2012;• Member of the State of Wisconsin Investment Board since 2015.

• None

Sandra Polk GuthmanAge: 74Chair since 2015Trustee since 2000

• Chair since 1988 and CEO from 1993 to 2012 of Polk Bros. Foundation (anIllinois not-for-profit corporation);

• Director of National Public Finance Guarantee Corporation (f/k/a MBIAInsurance Corp. of Illinois) (a municipal bond insurance company) from1994 to 2014;

• Trustee of Wellesley College from 2010 to 2016;• Trustee of Rush University Medical Center since 2007.

• None

Thomas A. KloetAge: 59Trustee since 2015

• Executive Director and Chief Executive Officer, TMX Group, Ltd (financialservices company and operator of stock, derivatives exchanges, their clearingoperations and securities depository) from 2008 to 2014;

• Chair of Boards of The NASDAQ Stock Market LLC, NASDAQ PHLX LLCand NASDAQ BX, Inc. since 2016.

• Nasdaq, Inc.

David R. MartinAge: 61Trustee since January 2017

• Vice President, Chief Financial Officer and Treasurer of Dimensional FundAdvisors LP (an investment manager) from 2007 to 2016;

• Executive Vice President, Finance and Chief Financial Officer of JanusCapital Group Inc. (an investment manager) from 2005 to 2007;

• Senior Vice President, Finance of Charles Schwab & Co., Inc. (an investmentbanking and securities brokerage firm) from 1999 to 2005.

• None



MARCH 31, 2018 (UNAUDITED)



Cynthia R. PlouchéAge: 61Trustee since 2014

• Senior Portfolio Manager and member of Investment Policy Committee,Williams Capital Management, LLC from 2006 to 2012;

• Managing Director and Chief Investment Officer of Blaylock-Abacus AssetManagement, Inc. from June 2003 to 2006;

• Founder, Chief Investment Officer and Managing Director of AbacusFinancial Group from May 1991 to 2003, a manager of fixed incomeportfolios for institutional clients;

• Trustee of AXA Premier VIP Trust (registered investment company —34 portfolios) from 2001 to May 2017;

• Assessor, Moraine Township, Illinois since January 2014.

• Barings Fund Trust(registered investmentcompany — 8 portfolios);Barings Global ShortDuration High Yield Fund(closed-end investmentcompany advised by BaringsLLC)

Mary Jacobs Skinner, Esq.(4)

Age: 60Trustee since 1998

• Retired as partner in the law firm of Sidley Austin LLP on November 30,2015;

• Harvard Advanced Leadership Fellow 2016;• Executive Committee Member and Chair, Public Policy Committee, Ann &

Robert H. Lurie Children’s Hospital since 2016;• Director, Pathways Awareness Foundation since 2000;• Director, Chicago Area Foundation for Legal Services from 1995 to 2013.

• None

Casey J. SyllaAge: 74Trustee since 2008

• Board member, University of Wisconsin — Eau Claire Foundation from 2006to 2015;

• Advisor, G.D. Searle Family Trusts from 2010 to 2012 and IndependentTrustee since 2012.

• GATX Corporation(transportation services)

INTERESTED TRUSTEE



Shundrawn A. Thomas(5)

Age: 44Trustee since October2017

• President, Northern Trust Asset Management since October 2017;• President, FlexShares Trust (Registered investment company —

25 portfolios) from 2011 to 2017;• Executive Vice President, Head of Funds and Managed Accounts, Northern

Trust Asset Management from June 2014 to October 2017;• Managing Director and Head of the Exchange-Traded Funds Group,

Northern Trust Global Investments from October 2010 to June 2014.

• FlexShares Trust (Registeredinvestment company —25 portfolios)

(1) Each Trustee may be contacted by writing to the Trustee, c/o Diana E. McCarthy, Drinker Biddle & Reath LLP, One Logan Square,Suite 2000, Philadelphia, PA 19103-6996.

(2) Each Trustee will hold office for an indefinite term until the earliest of: (i) the next meeting of shareholders, if any, called for the purposeof considering the election or re-election of such Trustee and until the election and qualification of his or her successor, if any, elected atsuch meeting; (ii) the date a Trustee resigns or retires, or a Trustee is removed by the Board of Trustees or shareholders, in accordancewith the Trust’s Agreement and Declaration of Trust; or (iii) in accordance with the current resolutions of the Board of Trustees (whichmay be changed without shareholder vote) on the earlier of the completion of 15 years of service on the Board and the last day of thecalendar year in which he or she attains the age of seventy-five years.

(3) This column includes only directorships of companies required to report to the Securities and Exchange Commission under the SecuritiesExchange Act of 1934, as amended (i.e., public companies) or other investment companies registered under the Investment Company Actof 1940, as amended (the “1940 Act”).

(4) Ms. Skinner is deemed to be a non-interested Trustee effective April 1, 2018.

(5) An “interested person,” as defined by the 1940 Act. Mr. Thomas is deemed to be an “interested” Trustee because he is an officer, director,employee, and a shareholder of Northern Trust Corporation and/or its affiliates.



T R U S T E E S A N D O F F I C E R S c o n t i n u e d

OFFICERS OF THE TRUST (1 )

NAME, ADDRESS, AGE,POSITIONS HELD WITH FUNDSAND LENGTH OF SERVICE ASNORTHERN FUNDS OFFICER PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS

Peter K. EwingAge: 5950 South LaSalle StreetChicago, Illinois 60603President since March 2017

• Director of Product Management, ETFs, and Mutual Funds, Northern Trust Investments, Inc. since March2017; Director of ETF Product Management from 2013 to February 2017; Senior Vice President of TheNorthern Trust Company and Northern Trust Investments, Inc. since September 2010; President of FlexSharesTrust since March 2017; Vice President of FlexShares Trust from 2011 to February 2017.

Kevin P. O’RourkeAge: 4650 South LaSalle StreetChicago, Illinois 60603Vice President since 2015

• Senior Vice President of Northern Trust Investments, Inc. since 2014; Vice President of Northern TrustInvestments, Inc. from 2009 to 2014.

Benjamin D. WiesenfeldAge: 4050 South LaSalle StreetChicago, Illinois 60603Chief Compliance Officersince June 2016

• Chief Compliance Officer of FlexShares Trust since July 2016; Chief Compliance Officer and General Counselof Scout Investments, Inc. and Chief Compliance Officer of the Scout Funds from 2009 to 2016; ChiefCompliance Officer of Thornburg Investment Management, Inc. and Thornburg Funds from 2006 to 2009.

Darlene ChappellAge: 5550 South LaSalle StreetChicago, IL 60603Anti-Money LaunderingCompliance Officersince 2009

• Anti-Money Laundering Compliance Officer for Northern Trust Investments, Inc., Northern Trust Securities,Inc. and Alpha Core Strategies Fund since 2009; Anti-Money Laundering Compliance Officer for 50 SouthCapital Advisors, LLC since 2015, Anti-Money Laundering Compliance Officer for Equity Long/ShortOpportunities Fund and FlexShares Trust since 2011; Vice President and Compliance Consultant for TheNorthern Trust Company since 2006; Anti-Money Laundering Compliance Officer for The Northern TrustCompany of Connecticut from 2009 to 2013 and Northern Trust Global Advisors, Inc from 2009 to 2011.

Randal E. ReinAge: 4750 South LaSalle StreetChicago, IL 60603Treasurer since 2008

• Senior Vice President of Northern Trust Investments, Inc. since 2010; Treasurer and Principal Financial Officerof FlexShares Trust since 2011; Treasurer of Alpha Core Strategies Fund since 2008; Treasurer of Equity Long/Short Opportunities Fund since 2011.

Michael J. PryszczAge: 50801 South Canal StreetChicago, IL 60607Assistant Treasurersince 2008

• Senior Vice President of Fund Accounting of The Northern Trust Company since 2010.

Richard N. CrabillAge: 492160 East Elliot RoadTempe, Arizona 85284Assistant Treasurersince 2008

• Senior Vice President of Fund Administration of The Northern Trust Company since 2011; Vice President ofFund Administration of The Northern Trust Company from 2005 to 2011.

Michael G. MeehanAge: 4750 South LaSalle StreetChicago, IL 60603Assistant Treasurersince 2011

• Senior Vice President of Northern Trust Investments, Inc. since 2016; Vice President of Northern TrustInvestments, Inc. from 2011 to 2016; Assistant Treasurer of Alpha Core Strategies Fund and Equity Long/ShortOpportunities Fund since 2011.



MARCH 31, 2018 (UNAUDITED)

NAME, ADDRESS, AGE,POSITIONS HELD WITH FUNDSAND LENGTH OF SERVICE ASNORTHERN FUNDS OFFICER PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS

Gregory A. ChidseyAge: 48801 South Canal StreetChicago, Illinois 60607Assistant Treasurersince 2013

• Senior Vice President of Financial Reporting of The Northern Trust Company since 2010.

Craig R. Carberry, Esq.Age: 5750 South LaSalle StreetChicago, IL 60603Secretary since 2010

• Associate General Counsel and Senior Vice President of The Northern Trust Company since June 2015;Secretary of Northern Trust Investments, Inc. since 2000; Chief Compliance Officer of Northern TrustInvestments, Inc. from October 2015 to June 2017; Assistant General Counsel and U.S. Funds General Counselof The Northern Trust Company from July 2014 to June 2015; Senior Legal Counsel and U.S. Funds GeneralCounsel of The Northern Trust Company from 2000 to 2014; Secretary of 50 South Capital Advisors, LLC since2015; Secretary of Alpha Core Strategies Fund since 2004; Secretary of Equity Long/Short Opportunities Fundand FlexShares Trust since 2011; Secretary of Northern Trust Global Advisors, Inc. from 2007 to 2012; Secretaryof The Northern Trust Company of Connecticut from 2009 to 2013.

Owen T. Meacham, Esq.Age: 4750 South LaSalle StreetChicago, IL 60603Assistant Secretarysince 2008

• Senior Vice President and Regulatory Administration Assistant General Counsel of The Northern TrustCompany since August 2015; Senior Vice President and Regulatory Administration Managing Attorney of TheNorthern Trust Company from 2012 to August 2015; Secretary of Harding, Loevner Funds, Inc. since 2010;Assistant Secretary of Ashmore Funds, Inc. since 2010.

Jose J. Del Real, Esq.Age: 4050 South LaSalle StreetChicago, Illinois 60603Assistant Secretarysince 2015

• Senior Legal Counsel and Senior Vice President of The Northern Trust Company since March 2017; SeniorLegal Counsel and Vice President of The Northern Trust Company from 2015 to February 2017; AssistantSecretary of Northern Trust Investments, Inc. since 2016; Legal Counsel and Vice President of The NorthernTrust Company from 2014 to 2015; Vice President and Regulatory Administration Senior Attorney of TheNorthern Trust Company from 2012 to 2014; Vice President and Regulatory Administration Attorney of TheNorthern Trust Company from 2011 to 2012; Second Vice President and Regulatory Administration Attorneyof The Northern Trust Company from 2010 to 2011; Assistant Secretary of Northern Funds and NorthernInstitutional Funds from 2011 to 2014 and since 2015; Assistant Secretary of FlexShares Trust since 2015.

(1) Each Officer serves until his or her resignation, removal, or retirement, or election of his or her successor. Each Officer also holds thesame office with Northern Institutional Funds.


MONEY MARKET FUND1,2,3,4,6,7 U.S. GOVERNMENT MONEY MARKET FUND1,2,3,6

MUNICIPAL MONEY MARKET FUND1,2,3,4,5,7 U.S. GOVERNMENT SELECT MONEY MARKET FUND1,2,3,6

1 Interest Rate Risk: During periods of rising interest rates, the Fund’s yield (and the market value of its securities) will tend to be lowerthan prevailing market rates; in periods of falling interest rates, the Fund’s yield (and the market value of its securities) will tend to behigher.

2 Money Market Risk: You could lose money by investing in the Fund. An investment in the Fund is not a deposit of any bank and isnot insured or guaranteed by the Federal Deposit Insurance Corporation, any other government agency, or The Northern TrustCompany, its affiliates, subsidiaries or any other bank. The Fund’s sponsor has no legal obligation to provide financial support to theFund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

3 Stable NAV Risk: The Fund may be unable to maintain a NAV per share price of $1.00 at all times. A significant enough marketdisruption or drop in market prices of securities held by the Fund, especially at a time when the Fund needs to sell securities to meetshareholder redemption requests, could cause the value of the Fund’s shares to decrease to a price less than $1.00 per share.

4 Municipal Market Volatility Risk: The municipal market can be significantly affected by adverse tax, legislative, or politicalchanges and the financial condition of the issuers of municipal securities.

5 Tax Risk: Future legislative or administrative changes or court decisions may materially affect the value of municipal instruments orthe ability of the Fund to pay tax-exempt dividends.

6 U.S. Government Securities Risk: There is a risk that the U.S. government will not provide financial support to its agencies,instrumentalities or sponsored enterprises if it is not obligated to do so by law. Certain U.S. government securities purchased by theFund may not be backed by the full faith and credit of the United States. It is possible that the issuers of such securities will not have thefunds to meet their payment obligations in the future.

7 Liquidity Fee and Redemption Gate Risk: The Fund may impose a “liquidity fee” (up to 2 percent) or a “redemption gate” thattemporarily restricts a shareholder’s ability to sell shares for up to 10 business days if the Fund’s liquidity falls below required minimumsbecause of market conditions or other factors.


I N V E S T M E N T C O N S I D E R AT I O N S



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1. P O R T F O L I O H O L D I N G S

Northern Funds files its complete schedule of portfolio holdingswith the U.S. Securities and Exchange Commission (“SEC”) forthe first and third quarters of each fiscal year on Form N-Q. TheFunds’ Forms N-Q are available on the SEC’s web site atwww.sec.gov. You may also review and obtain copies at the SEC’sPublic Reference Room in Washington, D.C. Information aboutthe Public Reference Room may be obtained by calling800-SEC-0330.

2 . P ROX Y VOT I N G

Northern Funds’ Proxy Voting Policies and Procedures and eachFund’s portfolio securities voting record for the 12-month periodended June 30 are available upon request and without charge byvisiting Northern Funds’ web site at northerntrust.com/funds orthe SEC’s web site at www.sec.gov or by calling the NorthernFunds Center at 800-595-9111.


F O R M O R E I N F O R M AT I O N


When building a sound Northern Funds investment strategy,you’ll want to select a mix of equity, fixed income and moneymarket funds that have return potential and an acceptablelevel of risk. Please carefully read the summary prospectus orprospectus and consider the investment objectives, risks,charges and expenses of Northern Funds before investing. Visitnortherntrust.com/funds or call 800-595-9111 to obtain asummary prospectus or prospectus. The summary prospectusand prospectus contain this and other information about thefunds.

P ROT E C T I N G YO U R P R I VAC YProtecting your privacy is important at Northern Funds, whichis why we wanted you to know:

▪ We do not sell non-public personal information about ourinvestors or former investors to any outside company.

▪ We have policies that limit access to your information to onlythose people who need it to perform their jobs and provideservices to you, and we have physical, electronic andprocedural safeguards that comply with federal standards toguard your personal information.

▪ We collect information about you from applications, forms,conversations and your use of our Web site; third partieswith your permission; and your transactions with us, ouraffiliates and our joint marketing partners.

▪ We do not disclose the information we collect about ourinvestors or former investors to anyone, except to companiesthat perform services for us, affiliates with whom we havejoint marketing agreements such as Northern Trust, (1) forour everyday purposes, such as to process transactions,maintain accounts, respond to court orders and legalinvestigations or report to credit bureaus or (2) as permittedby law.

▪ The information includes account balances and accounthistory. You may limit our use or sharing of information aboutyou with our affiliates and joint marketing partners formarketing purposes by calling 800-595-9111 weekdaysfrom 7:00 a.m. to 5:00 p.m. Central time or by writing to usat Northern Funds, P.O. Box 75986, Chicago, IL60675-5986.

If our information sharing practices change, we will send you arevised notice. You can also visit our Web site,northerntrust.com/funds, for an online version of our currentprivacy notice.

S H A R E H O L D E R CO M M U N I C AT I O N SIn order to help reduce expenses and reduce the amount ofmail that you receive, we generally send a single copy of allmaterials, including prospectuses, financial reports, proxystatements and information statements to all investors whoshare the same mailing address, even if more than one personin a household holds shares of a fund.

If you do not want your mailings combined with those of othermembers of your household, you may opt-out at any time bycontacting the Northern Funds Center either by telephone at800-595-9111; by mail at Northern Funds, P.O. Box 75986,Chicago, Illinois 60675-5986; or by sending an e-mail [email protected].

Not part of the Annual Report

N O R T H E R N

FA M I LY O F F U N D SR I S K / R E WA R D P OT E N T I A L

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EQUIT Y FUNDS

INTERNATIONAL EQUITIES & SECTOR FUNDSActive M Emerging Markets EquityEmerging Markets Equity IndexMulti-Manager Global Real EstateGlobal Real Estate IndexMulti-Manager Global Listed InfrastructureInternational EquityActive M International EquityInternational Equity IndexNorthern Engage360TM

Global Sustainability Index

SMALL- & MEDIUM-CAP EQUITY FUNDSSmall Cap ValueSmall Cap CoreSmall Cap IndexMid Cap Index

INCOME & LARGE-CAP EQUITY FUNDSActive M U.S. Equity U.S. Quality ESGLarge Cap ValueLarge Cap CoreStock IndexIncome Equity

ASSET ALLOCATION FUNDGlobal Tactical Asset Allocation

F IXE D INCOME FUNDS

LONGER-TERM & HIGH YIELD BOND FUNDSMulti-Manager Emerging Markets Debt OpportunityMulti-Manager High Yield OpportunityHigh Yield Fixed IncomeHigh Yield MunicipalCalifornia Tax-ExemptArizona Tax-ExemptTax-ExemptU.S. Treasury Index

SHORT & INTERMEDIATE-TERM BOND FUNDSFixed IncomeBond IndexCore BondCalifornia Intermediate Tax-ExemptIntermediate Tax-ExemptShort-Intermediate Tax-ExemptU.S. GovernmentShort BondShort-Intermediate U.S. GovernmentUltra-Short Fixed IncomeTax-Advantaged Ultra-Short Fixed Income

MONE Y M ARKET FUNDS

MONEY MARKET FUNDSMunicipal Money MarketMoney Market U.S. Government Select Money MarketU.S. Government Money Market

You could lose money by investing in the Money Market Funds. Although each of theMoney Market Funds seeks to preserve the value of your investment at $1.00 pershare, it cannot guarantee it will do so. The Funds’ sponsor has no legal obligationto provide financial support to the Funds, and you should not expect that the sponsorwill provide financial support in the Funds at any time.

The Money Market Fund and the Municipal Money Market Fund may impose a fee uponthe sale of your shares or may temporarily suspend your ability to sell shares if the Fund’sliquidity falls below required minimums because of market conditions or other factors.

You could lose money by investing in the Funds. An investment in a Fund involvesinvestment risks, including possible loss of principal. An investment in a Fund is nota deposit of a bank and is not insured or guaranteed by the Federal Deposit InsuranceCorporation (“FDIC”), any other government agency, or The Northern Trust Company,its affiliates, subsidiaries or any other bank.

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