MULTI-MANAGER FUNDS

ANNUAL REPORT MARCH 31, 2021 Dear Shareholder:

Global equities delivered very strong corporate earnings and ongoing Fed hospitalizations beginning to decline, returns during the 12-month period accommodation provided a firm the vaccine rollout underway, additional ended March 31, 2021. At the start of the foundation for investor risk appetite. fiscal stimulus apparently on the way period,stockswerejustdaysbeyondthe The approval of the first COVID-19 later in the year, and broadening market lows established in the coronavirus- vaccine not only boosted the equity leadership, the investment backdrop driven downturn that occurred in the first market as a whole, but also led to an remained supportive for stocks at quarter of 2020. The early stages of the important change in market leadership. period end. market’s recovery derived mainly from From the March 2020 low through early In closing, we would like to the swift and aggressive monetary and November 2020, gains for the leading U.S. recognize the planning and dedication fiscal stimulus provided by global and global indices had been driven largely of those who have helped Northern governments and central banks. The bygrowthstocks,aswellasbyasmall Trust Asset Management navigate the U.S. Federal Reserve (the “Fed”) cut number of mega-cap technology unprecedented challenges of the past 12 short-term rates to near zero, and companies. With so much uncertainty months. Our commitment to our clients Congress passed a $2 trillion stimulus surrounding the path of the virus and the remainsunwaveringasthebusiness package. Investors, seeing a path to when trajectory of global growth, investors environment continues to evolve in the the economic effects of COVID-19 could gravitated to the relative safety of months ahead. dissipate, began to bargain hunt in a companies that they believed could market that was well off its prior peak. maintain steady earnings in any economic Sincerely, The ensuing rally gained momentum environment. Once the vaccines were through the summer of 2020, propelling approved, investors began to look around Darek Wojnar, CFA major large-cap equity indices above their for improved relative performance from Head of Funds and Managed Accounts pre-pandemic highs by late August 2020. economically-sensitive segments that had Group, Stock prices paused in early autumn previously lagged, including value stocks Northern Trust Asset Management* due in part to a resurgence in COVID-19 and smaller companies. Theviewsinthisletterwereasof cases and uncertainty surrounding the In combination, these developments March 31, 2021 and may not necessarily U.S. election. However, markets resumed helped major equity indices to deliver reflect the same views on the date this their advance in November 2020 remarkable 12-month returns. For letter is first published or any time following the eventual conclusion of the example, the large-cap Russell 1000 Index thereafter. These views are intended to U.S. election and announcements that and the small-cap Russell 2000 Index help shareholders in understanding the two coronavirus vaccines had been posted dramatically strong one-year Funds’ investment methodology and do approved by U.S. regulatory agencies. returns of 60.59% and 94.85%, not constitute investment advice. Investors were further encouraged by the respectively, as of March 31, 2021. Based passage of a new round of U.S. fiscal on the MSCI EAFE Index and the MSCI This report is submitted for the stimulus in early 2021, as well as by Emerging Markets Index, developed- and general information of the shareholders of expectations that a significant emerging-market international stocks, the Funds. It is not authorized for infrastructure package might also emerge though they lagged U.S. indices, distribution to prospective investors unless from Congress. The rally continued nonetheless delivered robust gains of preceded or accompanied by an effective through the end of the 12-month period 44.57% and 58.39%, respectively. It is prospectus, which includes information ended March 31, 2021, as the prospect of highly unlikely that these returns can be regarding the Funds’ risks, objectives, fees improving economic growth, rising replicated in the next 12-month period. and expenses, experience of its Still, with COVID-19 cases and management, and other information.

*Northern Trust Asset Management is the branding name of the asset management business of Northern Trust Corporation, a financial holding company and publicly traded company. MULTI-MANAGER FUNDS

TABLE OF CONTENTS

2 PORTFOLIO MANAGEMENT COMMENTARY

10 STATEMENTS OF ASSETS AND LIABILITIES

12 STATEMENTS OF OPERATIONS

14 STATEMENTS OF CHANGES IN NET ASSETS

16 FINANCIAL HIGHLIGHTS

23 SCHEDULES OF INVESTMENTS

EQUITY FUNDS

23 ACTIVE M EMERGING MARKETS EQUITY FUND Ticker Symbol: NMMEX

28 ACTIVE M INTERNATIONAL EQUITY FUND Ticker Symbol: NMIEX

36 MULTI-MANAGER GLOBAL LISTED INFRASTRUCTURE FUND Ticker Symbol: NMFIX This report has been prepared for the general 40 MULTI-MANAGER GLOBAL REAL ESTATE information of Northern Funds shareholders. It FUND is not authorized for distribution to prospective Ticker Symbol: NMMGX investors unless accompanied or preceded by a current Northern Funds summary prospectus 43 NORTHERN ENGAGE360TM FUND or prospectus, which contains more complete Ticker Symbol: NENGX information about a fund’s investment FIXED INCOME FUNDS objectives, risks, fees and expenses. Investors are reminded to read a summary prospectus 51 MULTI-MANAGER EMERGING MARKETS DEBT or prospectus carefully before investing or OPPORTUNITY FUND sending money. Ticker Symbol: NMEDX 64 MULTI-MANAGER HIGH YIELD OPPORTUNITY This report contains certain forward-looking FUND statements about factors that may affect the Ticker Symbol: NMHYX performance of the Funds in the future. These statements are based on Northern Funds’ 95 NOTES TO THE FINANCIAL STATEMENTS management predictions and expectations 111 REPORT OF INDEPENDENT REGISTERED PUBLIC concerning certain future events, such as ACCOUNTING FIRM performance of the economy as a whole and of specific industry sectors, changes in the 112 TAX INFORMATION levels of interest rates, the impact of developing world events, and other factors. 113 LIQUIDITY RISK MANAGEMENT PROGRAM Management believes these forward-looking 114 FUND EXPENSES statements to be reasonable, although they are inherently uncertain and difficult to 116 TRUSTEES AND OFFICERS predict. Actual events may cause adjustments in Northern Funds’ management strategies 120 INVESTMENT CONSIDERATIONS from those currently expected to be employed. 124 FOR MORE INFORMATION

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

NOT FDIC INSURED May lose value / No bank guarantee

NORTHERN FUNDS ANNUAL REPORT 1 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS

ACTIVE M EMERGING MARKETS EQUITY FUND (UNAUDITED)

PORTFOLIO MANAGEMENT COMMENTARY Uncertainty due to the COVID-19 pandemic brought about a period of heightened volatility across emerging markets during the Fund’s most recent fiscal year. For the 12-month reporting period ended March 31, 2021, the Active M Emerging Markets Equity Fund returned 62.55%, outperforming the 58.39% return of the MSCI Emerging Markets® Index. Emerging market performance was supported by semiconductor stocks within South Korea and Taiwan. Information outsourcing stocks in India also performed well, contributing to that market’s rise of 76.61% for the period. Although China recovered from pandemic lockdowns more quickly than most markets, Chinese stocks were held back by U.S. sanctions announced in the fourth quarter of 2020, and returned 43.61%. South Africa posted a notable return of 80.49%, benefiting from the approval of COVID-19 vaccines. Rising COVID-19 infections resulted in the Brazilian market lagging the broader benchmark, with a return of 46.48%. Market participation broadened in the fourth quarter of 2020 as optimism over vaccine rollouts led to outperformance by value stocks. For the full 12-month period, however, the MSCI Emerging Markets Growth Index return of 63.78% outperformed the MSCI Emerging Markets Value Index return of 52.53%. From a country perspective, an underweight to China added meaningfully to Fund performance during the period. Stock selection in China also was positive. Exposure to information technology stocks within Taiwan supported returns and an overweight to this market also contributed. Brazil was another market where the Fund’s holdings outperformed. On the downside, stock selection was weak in South Korea and South Africa, while the Fund’s exposure to Egypt also detracted from results. Growth-oriented sub adviser Axiom benefited from the growth style’s outperformance of value for the period, as well as from strong stock selection in Brazil, China and Taiwan. Top-down-focused Ashmore Investment Management Limited benefited from an underweight to China and overweights to both Taiwan and South Korea. Lastly, Westwood Global Investments overcame a value style headwind with strong stock selection in Brazil and Taiwan, along with an overweight to South Korea. INVESTMENT PERFORMANCE

AVERAGE ANNUAL RETURNS for periods ended March 31, 2021

SINCE INCEPTION TOTAL RETURN ONE YEAR FIVE YEAR TEN YEAR 11/19/08 ACTIVE M EMERGING MARKETS EQUITY FUND 62.55% 11.51% 3.74% 11.33% MSCI EMERGING MARKETS® INDEX 58.39 12.07 3.65 10.91 Fund Performance reflects contractual expense reimbursements in effect. In their absence, performance would be reduced. Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at northerntrust.com/funds. The gross and net expense ratios are 1.25% and 1.10%, respectively, as of the most recent prospectus dated July 31, 2020. The net expense ratio includes contractual expense reimbursements by the adviser through at least July 31, 2021. Please read the current prospectus for more complete information on fees and expenses. These ratios may differ from those presented in the Financial Highlights.

GROWTH OF A $10,000 INVESTMENT The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the $37,695 $35,980 redemption of Fund shares. $40,000 $35,000 Unlike the Index, the Fund’s total returns are reduced by operating expenses, such $30,000 as transaction costs and management $25,000 fees. A direct investment in an Index is $20,000 not possible. $15,000 $10,000 $5,000 11/19/08 3/31/21

ACTIVE M EMERGING MARKETS EQUITY FUND MSCI EMERGING MARKETS® INDEX

TheMSCIEmergingMarkets® Index is a free-float adjusted market capitalization index designed to measure the equity market performance in the global emerging markets. Information about Investment Considerations can be found on The MSCI Emerging Markets Growth Index captures large and mid cap securities exhibiting overall growth style pages 120 and 121. characteristics across 27 Emerging Markets (EM) countries. The MSCI Emerging Markets Value Index captures large and mid cap securities exhibiting overall value style characteristics across 27 Emerging Markets (EM) countries.

MULTI-MANAGER FUNDS 2 NORTHERN FUNDS ANNUAL REPORT MULTI-MANAGER FUNDS

ACTIVE M INTERNATIONAL EQUITY FUND (UNAUDITED)

PORTFOLIO MANAGEMENT COMMENTARY Global markets began to recover during the second quarter of 2020, after the COVID-19 pandemic led to a sharp decline in the first quarter of 2020. The MSCI World® ex USA IM Index posted its best quarterly performance in 10 years, gaining 16.21% in the second quarter of 2020. This helped to propel the Index’s 48.47% return for the 12-month period ended March 31, 2021. The Active M International Equity Fund performed well on both an absolute and relative basis during this period, with a return of 59.61%. More cyclical areas of the markets such as materials, consumer discretionary, information technology, industrials and financials fared better for the reporting period, as economic recovery seemed likely after vaccines became available. Defensive sectors such as consumer staples and health care struggled relative to the index. Following a strong start by growth stocks, value stocks outperformed for the reporting period, while small-cap stocks outperformed large caps. Stock selection led the Fund’s outperformance, driven in part by an overweight to higher-risk securities. The Fund’s industry allocations, including an underweight to pharmaceuticals, which lagged the index, and an overweight to the better performing semiconductors & semiconductor equipment, contributed positively. Sector allocation, specifically an underweight to energy as well as non-benchmark exposure to emerging markets, also contributed to Fund’s performance. Conversely, an overweight to larger-cap stocks detracted from Fund performance. Value sub-advisers Causeway Capital Management and Wellington Management Company performed well due to their exposures to deeper value, more economic sensitive stocks. WCM Investment Management’s quality growth portfolio and the Fund’s smaller-cap sub-adviser, Victory Capital Management, struggled during the latter part of the period but managed to post positive results for the full 12 months. In September 2020, Polen Capital Management’s international growth strategy was added to the Fund. Polen employs a concentrated portfolio seeking high quality large-cap growth companies that seek to provide sustainable, above-average earnings growth. INVESTMENT PERFORMANCE

AVERAGE ANNUAL RETURNS for periods ended March 31, 2021

SINCE INCEPTION TOTAL RETURN ONE YEAR FIVE YEAR TEN YEAR 06/22/06 ACTIVE M INTERNATIONAL EQUITY FUND 59.61% 9.98% 4.82% 4.06% MSCI WORLD® EX USA IM INDEX 48.47 9.16 5.47 4.38 Fund Performance reflects contractual expense reimbursements in effect. In their absence, performance would be reduced. Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at northerntrust.com/funds. The gross and net expense ratios are 0.91% and 0.85%, respectively, as of the most recent prospectus dated July 31, 2020. The net expense ratio includes contractual expense reimbursements by the adviser through at least July 31, 2021. Please read the current prospectus for more complete information on fees and expenses. These ratios may differ from those presented in the Financial Highlights.

GROWTH OF A $10,000 INVESTMENT The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the $17,995 $18,847 redemption of Fund shares. $20,000 $18,000 Unlike the Index, the Fund’s total returns $16,000 are reduced by operating expenses, such $14,000 as transaction costs and management $12,000 fees. A direct investment in an Index is $10,000 not possible. $8,000 $6,000 $4,000 6/22/06 3/31/21

ACTIVE M INTERNATIONAL EQUITY FUND MSCI WORLD® EX USA IM INDEX

MSCI World® ex USA IM Index is a free float-adjusted, market capitalization weighted index that is designed to measure the equity market performance of developed markets. It captures large, mid and small cap representation Information about Investment across 22 developed markets, excluding the United States, and covers approximately 99% of the free float-adjusted Considerations can be found on market capitalization in each country. It is not possible to invest directly in an index. pages 120 and 121.

NORTHERN FUNDS ANNUAL REPORT 3 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS

MULTI-MANAGER GLOBAL LISTED INFRASTRUCTURE FUND (UNAUDITED)

PORTFOLIO MANAGEMENT COMMENTARY For the 12-month reporting period ended March 31, 2021, the global listed infrastructure market as measured by the S&P Global Infrastructure® Index posted a strong return of 35.99%, while underperforming the broader global equity market as gauged by the 54.60% return of the MSCI ACWI Index. The top-performing sub-industries within the S&P Global Infrastructure®Index were cyclicals such as marine ports, airports and oil & gas pipelines that declined sharply when the pandemic began and then benefited from a strong rebound on positive COVID-19 vaccine news. Utilities, including water, gas and electric lagged during the period. All major regions posted positive returns for the 12 months, led by the U.K. and Pacific ex-Japan, while North America underperformed. The Multi-Manager Global Listed Infrastructure Fund’s return of 25.81% underperformed the 35.99% return of the S&P Global Infrastructure® Index for the period, with an underweight to the airport sector the largest detractor to Fund performance. An overweight in water utilities and stock selection in diversified utilities also weighed on relative Fund performance, partially offset by a strong contribution from non-benchmark exposure to railways. Strong stock selection in electric utilities also contributed positively to Fund performance. Sub-adviser Lazard Asset Management underperformed the Fund’s benchmark over the 12-month period, due to an underweight in airports and an overweight in water utilities. Sub-adviser Maple-Brown Abbott Limited underperformed due to an underweight in airports and an overweight in utilities. First Sentier underperformed due to an underweight in airports, an overweight to towers and weak stock selection within utilities. INVESTMENT PERFORMANCE

AVERAGE ANNUAL RETURNS for periods ended March 31, 2021

SINCE INCEPTION TOTAL RETURN ONE YEAR THREE YEAR FIVE YEAR 09/18/12 MULTI-MANAGER GLOBAL LISTED INFRASTRUCTURE FUND 25.81% 5.25% 7.03% 7.54% S&P GLOBAL INFRASTRUCTURE® INDEX (NET DIVIDEND RETURN) 35.99 4.74 5.79 5.91 Fund Performance reflects contractual expense reimbursements in effect. In their absence, performance would be reduced. Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at northerntrust.com/funds. The gross and net expense ratios are 0.98% and 0.98%, respectively, as of the most recent prospectus dated July 31, 2020. The net expense ratio includes contractual expense reimbursements by the adviser through at least July 31, 2021. Please read the current prospectus for more complete information on fees and expenses. These ratios may differ from those presented in the Financial Highlights.

GROWTH OF A $10,000 INVESTMENT The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the $18,592 $16,323 redemption of Fund shares. $20,000 Unlike the Index, the Fund’s total returns $18,000 are reduced by operating expenses, such $16,000 as transaction costs and management $14,000 fees. A direct investment in an Index is not possible. $12,000

$10,000

$8,000 9/18/12 3/31/21

MULTI-MANAGER GLOBAL LISTED INFRASTRUCTURE FUND S&P GLOBAL INFRASTRUCTURE® INDEX (NET DIVIDEND RETURN)

The S&P Global Infrastructure® Index provides liquid and tradable exposure to 75 companies from around the world that represent the listed infrastructure universe. The Index has balanced weights across three distinct Information about Investment infrastructure clusters: Utilities, Transportation and Energy. Considerations can be found on pages 120 and 121.

MULTI-MANAGER FUNDS 4 NORTHERN FUNDS ANNUAL REPORT MULTI-MANAGER FUNDS

MULTI-MANAGER GLOBAL REAL ESTATE FUND (UNAUDITED)

PORTFOLIO MANAGEMENT COMMENTARY For the 12-month reporting period ended March 31, 2021, global real estate securities as measured by the FTSE® EPRA®/NAREIT® Developed Index returned 34.65% as the sector snapped back from the pressures of the COVID-19 pandemic and ensuing restrictions. The Multi-Manager Global Real Estate Fund returned 33.59% for the reporting period, modestly underperforming the benchmark . During the period, the United States, Australia and Canada outperformed in a reversal of the volatile first quarter of 2020, as investors sought a combination of longer-term growth and safety. Hong Kong and Japan underperformed, reversing their outperformance during the emergence of COVID-19 in early 2020. In sector terms, lodging and retail real estate rebounded from pandemic-driven selloffs to outperform during the period. Data centers disappointed during the period, giving back some of the gains experienced in the immediate wake of COVID-19 as “work from home” emerged as a theme. Additionally, office buildings lagged as uncertainty about employees returning to on-site work weighed on the sector. Stock selection in the United States and holdings outside of the benchmark were the primary detractors from Fund performance. The Fund’s performance was negatively impacted by an underweight to retail. Stock selection in Japan and an allocation to Australia were positive contributors. Sub-adviser Massachusetts Financial Services Company outperformed the Fund’s benchmark and added value through allocation and stock selection in Japan, Australia and Mexico, allocation and stock selection in the office sector, and non-benchmark exposures. In early September 2020, Janus Capital Management replaced Brookfield Public Securities Group as a sub-adviser to the Fund. Janus has historically managed a portfolio that is different than the benchmark and seeks to take meaningful active positions in its highest conviction ideas. INVESTMENT PERFORMANCE

AVERAGE ANNUAL RETURNS for periods ended March 31, 2021

SINCE INCEPTION TOTAL RETURN ONE YEAR FIVE YEAR TEN YEAR 11/19/08

MULTI-MANAGER GLOBAL REAL ESTATE FUND 33.59% 5.56% 5.91% 11.21% FTSE® EPRA®/NAREIT® DEVELOPED® INDEX 34.65 3.86 5.73 11.13 Fund Performance reflects contractual expense reimbursements in effect. In their absence, performance would be reduced. Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at northerntrust.com/funds. The gross and net expense ratios are 1.09% and 0.94%, respectively, as of the most recent prospectus dated July 31, 2020. The net expense ratio includes contractual expense reimbursements by the adviser through at least July 31, 2021. Please read the current prospectus for more complete information on fees and expenses. These ratios may differ from those presented in the Financial Highlights.

GROWTH OF A $10,000 INVESTMENT The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the $37,209 $36,877 redemption of Fund shares. $40,000 $35,000 Unlike the Index, the Fund’s total returns $30,000 are reduced by operating expenses, such $25,000 as transaction costs and management fees. A direct investment in an Index is $20,000 not possible. $15,000 $10,000 $5,000 11/19/08 3/31/21

MULTI-MANAGER GLOBAL REAL ESTATE FUND FTSE® EPRA®/NAREIT® DEVELOPED® INDEX

FTSE® EPRA®/NAREIT® Developed® Index is designed to track the performance of listed real estate companies and Information about Investment REITs worldwide. By making the index constituents free-float adjusted, liquidity, size and revenue screened, the Considerations can be found on series is suitable for use as the basis for investment products, such as derivatives and exchange traded funds (ETFs). pages 120 and 121. It is not possible to invest in an index.

NORTHERN FUNDS ANNUAL REPORT 5 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS

NORTHERN ENGAGE360TM FUND (UNAUDITED)

PORTFOLIO MANAGEMENT COMMENTARY Global equities as measured by the MSCI ACWI Index, returned 54.60% over the 12-month reporting period ended March 31, 2021. The U.S. market, as measured by the Russell 3000® Index, returned 62.53%, while the international developed market as measured by the MSCI EAFE® Index and emerging markets as measured by the MSCI Emerging Markets Index returned 44.57% and 58.39%, respectively. From a style perspective, growth outperformed value over the period, with the MSCI ACWI® Growth Index returning 58.95% versus the MSCI ACWI® Value Index returning 48.82%. The Northern Engage360TM Fund returned 56.79% for the reporting period ended March 31, 2021, outperforming the return of the MSCI ACWI Index. The Fund’s stock selection and smaller-cap bias led to positive relative return over the period. Sub-advisers ARK Investment Management, Aristotle Capital Management and EARNEST Partners U.S. contributed positively to the Fund’s relative return, while international sub-advisers Ariel Investments and Strategic Global Advisors and U.S. large cap sub-adviser Mar Vista International Partners detracted from the Fund’s relative performance. ARK was the largest contributor to Fund returns, with performance driven by positive stock selection within health care and consumer discretionary. Aristotle’s favorable performance was due to positive stock selection in financials and information technology, while EARNEST benefited from an underweight to utilities and an overweight to information technology. Ariel’s negative relative return was driven by stock selection in information technology and materials, while Strategic Global’s negative contribution derived broadly from stock selection across sectors. During its most recent fiscal year, the Fund removed U.S. small and mid capitalization sub-adviser Segall Bryant and Hamill. Proceeds from the transaction were allocated between the Fund’s two U.S. large-cap sub-advisers, Mar Vista and Aristotle. INVESTMENT PERFORMANCE

AVERAGE ANNUAL RETURNS for periods ended March 31, 2021

SINCE INCEPTION TOTAL RETURN ONE YEAR THREE YEAR 11/20/17 NORTHERN ENGAGE360TM FUND 56.79% 11.52% 10.82% MSCI ACWI INDEX 54.60 12.07 11.48 Fund Performance reflects contractual expense reimbursements in effect. In their absence, performance would be reduced. Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at northerntrust.com/funds. The gross and net expense ratios are 0.78% and 0.70%, respectively, as of the most recent prospectus dated July 31, 2020. The net expense ratio includes contractual expense reimbursements by the adviser through at least July 31, 2021. Please read the current prospectus for more complete information on fees and expenses. These ratios may differ from those presented in the Financial Highlights.

GROWTH OF A $10,000 INVESTMENT The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the $14,119 $14,405 redemption of Fund shares. $15,000 $14,000 Unlike the Index, the Fund’s total returns $13,000 are reduced by operating expenses, such as transaction costs and management $12,000 fees. A direct investment in an Index is $11,000 not possible. $10,000 $9,000 $8,000 11/20/17 3/31/21

NORTHERN ENGAGE360™ FUND MSCI ACWI INDEX

The MSCI All Country World Index (“MSCI ACWI”) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI ACWI Information about Investment Considerations can be found on consists of 49 country indices comprising 23 developed and 26 emerging market country indices. As of May 31, pages 120 and 121. 2020, the developed market country indices included are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States. As of May 31, 2020, the emerging market country indices included are: Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Pakistan, Peru, the Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey, and the United Arab Emirates.

MULTI-MANAGER FUNDS 6 NORTHERN FUNDS ANNUAL REPORT MULTI-MANAGER FUNDS

MULTI-MANAGER EMERGING MARKETS DEBT OPPORTUNITY FUND (UNAUDITED)

PORTFOLIO MANAGEMENT COMMENTARY The Multi-Manager Emerging Markets Debt Opportunity Fund is constructed to provide exposure to a blend of local and external currency emerging market debt, as well as to opportunistically invest in emerging market corporate and frontier market bonds. For the 12-month reporting period ended March 31, 2021, external debt (i.e., debt denominated in U.S. dollars or euros) posted a 16.00% return as measured by the JP Morgan Emerging Markets Bond (EMBI) Global Diversified Index, while emerging market local bonds posted a 13.03% return as measured by the JP Morgan GBI-EM Global Diversified Index. The Fund is benchmarked to a blended index that is equally divided between the JP Morgan Emerging Markets Bond (EMBI) Global Diversified Index and the JP Morgan GBI-EM Global Diversified Index. The Multi-Manager Emerging Markets Debt Opportunity Fund returned 17.77% for the reporting period ended March 31, 2021, compared with the blended benchmark return of 14.54%. Positive relative Fund performance was driven by both sub-advisers during the period. Asset allocation was additive to Fund performance for both sub-advisers, as was Ashmore Investment Management’s positioning with respect to corporate issues. Most of the outperformance for the reporting period was driven by the external debt country selection of both sub-advisers. For sub-adviser Ashmore, Egypt and Ecuador were the top contributors to Fund performance on a country level, driven by local currency exposure in Egypt and by external debt positioning in Ecuador. Brazil, Ashmore’s largest overweight, was additive to Fund performance overall, as local currency detraction was outweighed by positive security selection. South Africa and Lebanon were relative detractors to Fund performance for the reporting period. For sub-adviser Global Evolution USA, Angola, Zambia and Argentina positioning led positive contributions to Fund performance, driven by hard currency allocation as well as security selection, while positioning in Nigeria and Mexico detracted. INVESTMENT PERFORMANCE

AVERAGE ANNUAL RETURNS for periods ended March 31, 2021

SINCE INCEPTION TOTAL RETURN ONE YEAR THREE YEAR FIVE YEAR 12/03/13 MULTI-MANAGER EMERGING MARKETS DEBT OPPORTUNITY FUND 17.77% -0.37% 2.82% 1.16% JP MORGAN EMBI GLOBAL DIVERSIFIED INDEX 16.00 4.04 5.05 5.46 JP MORGAN GBI-EM GLOBAL DIVERSIFIED INDEX 13.03 -0.79 3.08 0.51 50% JP MORGAN EMBI GLOBAL DIVERSIFIED AND 50% JP MORGAN GBI-EM GLOBAL DIVERSIFIED INDEX 14.54 1.66 4.12 3.03 Fund Performance reflects contractual expense reimbursements in effect. In their absence, performance would be reduced. Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. The one year total return will differ from the total return in the Financial Highlights. The Financial Highlights’ total return has been adjusted to reflect performance in conformity with U.S. GAAP principles. Performance data current to the most recent month-end is available at northerntrust.com/funds. The gross and net expense ratios are 1.01% and 0.94%, respectively, as of the most recent prospectus dated July 31, 2020. The net expense ratio includes contractual expense reimbursements by the adviser through at least July 31, 2021. Please read the current prospectus for more complete information on fees and expenses. These ratios may differ from those presented in the Financial Highlights.

GROWTH OF A $10,000 INVESTMENT The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the $10,882 $14,764 $10,383 $12,441 redemption of Fund shares. $16,000 $15,000 Unlike the Index, the Fund’s total returns $14,000 are reduced by operating expenses, such $13,000 as transaction costs and management $12,000 fees. A direct investment in an Index is $11,000 not possible. $10,000 $9,000 $8,000 $7,000 12/3/13 3/31/21

MULTI-MANAGER EMERGING MARKETS DEBT OPPORTUNITY FUND JP MORGAN EMBI GLOBAL DIVERSIFIED INDEX JP MORGAN GBI-EM GLOBAL DIVERSIFIED INDEX 50% JP MORGAN EMBI GLOBAL DIVERSIFIED AND 50% JP MORGAN GBI-EM GLOBAL DIVERSIFIED INDEX

JP Morgan Emerging Markets Bond Index Global Diversified (EMBI Global Diversified) is a uniquely weighted USD-denominated emerging markets sovereign bond index. The EMBI Global Diversified has the same instrument Information about Investment composition as the market-capitalization weighted EMBI Global, which includes USD-denominated fixed and Considerations can be found on floating rate instruments issued by sovereign and quasi-sovereign entities. The EMBI Global Diversified limits the pages 120 and 121. weights of the index countries by only including a specified portion of those countries’ eligible current face amounts of debt outstanding. JP Morgan Government Bond-Emerging Market Index Global Diversified (GBI-EM Global Diversified) tracks the performance of local currency debt issued by emerging market governments. The index incorporates a constrained market-capitalization methodology in which individual issuer exposures are capped at 10% (with the excess distributed to smaller issuers), for greater diversification among issuing governments.

NORTHERN FUNDS ANNUAL REPORT 7 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND (UNAUDITED)

PORTFOLIO MANAGEMENT COMMENTARY For the 12-month reporting period ended March 31, 2021, the high yield market returned 23.22% as measured by the ICE BofA U.S. High Yield Constrained Index. For the period, lower quality securities led the high yield market’s performance with issues rated CCC and below returning 40.2%, followed by B-rated securities returning 22.4% and BB-rated securities returning 20.3%. From a sector perspective, energy (60.9%) and gaming (30.2%) outperformed the index, while technology (14.6%), media (12.2%) and telecommuni- cations (10.2%) lagged. For the 12-month reporting period ended March 31, 2021, the Multi-Manager High Yield Opportunity Fund returned 26.25% versus 23.22% for its benchmark index, the ICE BofA U.S. High Yield Constrained Index. The Fund’s overweight to lower-rated securities, driven by sub-adviser DDJ Capital Management and to a lesser extent Nomura Corporate Research and Asset Management, contributed to the Fund’s outperformance for the period. DDJ’s smaller issuer size and exposure to bank loans along with Nomura’s overweights to energy and gaming also contributed to Fund performance. Sub-adviser Neuberger Berman Investment Advisers’ high quality bias and security selection within lower-rated issuers helped to drive relative Fund performance, as did Nomura’s overall security selection and DDJ’s duration positioning. INVESTMENT PERFORMANCE

AVERAGE ANNUAL RETURNS for periods ended March 31, 2021

SINCE INCEPTION TOTAL RETURN ONE YEAR FIVE YEAR TEN YEAR 09/23/09

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND 26.25% 7.45% 5.54% 6.58% ICE BofA U.S. HIGH YIELD CONSTRAINED INDEX 23.22 7.92 6.30 7.67 Fund Performance reflects contractual expense reimbursements in effect. In their absence, performance would be reduced. Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at northerntrust.com/funds. The gross and net expense ratios are 0.93% and 0.86%, respectively, as of the most recent prospectus dated July 31, 2020. The net expense ratio includes contractual expense reimbursements by the adviser through at least July 31, 2021. Please read the current prospectus for more complete information on fees and expenses. These ratios may differ from those presented in the Financial Highlights.

GROWTH OF A $10,000 INVESTMENT The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the $20,832 $23,419 redemption of Fund shares. $24,000 $22,000 Unlike the Index, the Fund’s total returns $20,000 are reduced by operating expenses, such $18,000 as transaction costs and management $16,000 fees. A direct investment in an Index is $14,000 not possible. $12,000 $10,000 $8,000 9/23/09 3/31/21

Multi-Manager High Yield Opportunity Fund ICE BofA U.S. HIGH YIELD CONSTRAINED INDEX

ICE BofA U.S. High Yield Constrained Index contains all securities in the BofA Merrill Lynch U.S. High Yield Master Information about Investment II Index, but caps issuer exposure based on their current amount outstanding, provided the total allocation to an Considerations can be found on individual issuer does not exceed 2%. The Index tracks the performance of US dollar denominated below pages 120 and 121. investment grade corporate debt publicly issued in the US domestic market. It is not possible to invest directly in an index.

MULTI-MANAGER FUNDS 8 NORTHERN FUNDS ANNUAL REPORT MULTI-MANAGER FUNDS

THIS PAGE INTENTIONALLY LEFT BLANK

NORTHERN FUNDS ANNUAL REPORT 9 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS

STATEMENTS OF ASSETS AND LIABILITIES

ACTIVE M MULTI-MANAGER EMERGING ACTIVE M GLOBAL LISTED MARKETS INTERNATIONAL INFRASTRUCTURE Amounts in thousands, except per share data EQUITY FUND EQUITY FUND FUND ASSETS: Investments, at value $424,636 $660,673 $1,116,466 Investments in affiliates, at value 16,145 18,115 42,041 Foreign currencies, at value (cost $852, $1,276, $2,949, $1, $1,630 and $609, respectively) 854 1,252 2,950 Due from broker (Note 2) —— — Interest income receivable —— — Dividend income receivable 1,536 1,736 863 Receivable for foreign tax reclaims 40 1,717 1,047 Receivable for securities sold 1,135 1,185 7,674 Receivable for variation margin on futures contracts 60 1 59 Receivable for fund shares sold 289 57 451 Receivable from investment adviser —— — Receivable for variation margin on centrally cleared interest rate swap agreements —— — Unrealized appreciation on bilateral interest rate swap agreements —— — Unrealized appreciation on forward foreign currency exchange contracts —— — Prepaid and other assets 305 15 5 Total Assets 445,000 684,751 1,171,556 LIABILITIES: Unrealized depreciation on forward foreign currency exchange contracts —— — Payable for securities purchased 4,988 1,379 3,364 Unfunded loan commitments (Note 2) —— — Payable for when-issued securities —— — Payable for variation margin on futures contracts —4642 Payable for fund shares redeemed 45 20 278 Duetobroker(Note2) —— — Payable to affiliates: Management fees 98 108 200 Custody fees 10 18 17 Shareholder servicing fees 62 5 Transfer agent fees 14 22 37 Accrued Trustee fees 22 2 Deferred foreign capital gains tax payable 928 — — Accrued other liabilities 100 26 17 Total Liabilities 6,191 1,623 3,962 Net Assets $438,809 $683,128 $1,167,594 ANALYSIS OF NET ASSETS: Capital stock $287,710 $507,952 $1,047,512 Distributable earnings (loss) 151,099 175,176 120,082 Net Assets $438,809 $683,128 $1,167,594 Shares Outstanding ($.0001 par value, unlimited authorization) 19,795 53,312 90,377 Net Asset Value, Redemption and Offering Price Per Share $22.17 $12.81 $12.92 Investments, at cost $321,807 $493,978 $1,000,329 Investments in affiliates, at cost 16,145 18,115 42,041

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 10 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

MULTI-MANAGER MULTI-MANAGER NORTHERN EMERGING MARKETS MULTI-MANAGER GLOBAL REAL ESTATE ENGAGE360TM DEBT OPPORTUNITY HIGH YIELD FUND FUND FUND OPPORTUNITY FUND

$175,872 $379,988 $136,991 $166,785 3,903 17,898 5,681 8,003

1 1,588 598 — — — 966 — — — 2,009 2,724 695 825 — — 28 291 49 — 894 91 328 986 —40— — 351 — — 17 3107 5

—— 19—

—— 14—

— 221 162 — 13 5 4 4 181,760 400,957 146,828 178,524

— 90 600 — 409 261 423 853 —— — 13 — — 590 2,955 —18— — 91 — — 30 —— 94—

31 52 24 28 88 5 2 —— — 2 6135 6 2— 1 2 —— — — 21 16 22 16 568 458 1,764 3,907 $181,192 $400,499 $145,064 $174,617

$162,517 $304,286 $162,320 $225,236 18,675 96,213 (17,256) (50,619) $181,192 $400,499 $145,064 $174,617

15,942 29,359 16,274 18,559 $11.37 $13.64 $8.91 $9.41 $149,392 $290,620 $145,004 $167,416 3,903 17,898 5,681 8,003

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 11 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS

STATEMENTS OF OPERATIONS

ACTIVE M MULTI-MANAGER EMERGING ACTIVE M GLOBAL LISTED MARKETS INTERNATIONAL INFRASTRUCTURE Amounts in thousands EQUITY FUND EQUITY FUND FUND INVESTMENT INCOME: Dividend income $6,641(1) $10,161(1) $27,759(1) Non-cash dividend income 454 — 1,752 Dividend income from investments in affiliates 59 25 Interest income (Note 6) 62 608 10 Total Investment Income 7,162 10,778 29,546 EXPENSES: Management fees 4,237 4,965 9,650 Custody fees 259 192 164 Transfer agent fees 151 233 414 Registration fees 25 22 24 Printing fees 20 26 17 Professional fees 39 63 39 Shareholder servicing fees 99 17 58 Trustee fees 6136 Interest expense 2— — Tax expense —— — Other 72 52 17 Total Expenses 4,910 5,583 10,389 Less expenses reimbursed by investment adviser (581) (444) (41) Less expenses reimbursed by affiliate (Note 6) —— — Net Expenses 4,329 5,139 10,348 Net Investment Income 2,833 5,639 19,198 NET REALIZED AND UNREALIZED GAINS (LOSSES): Net realized gains (losses) on: Investments (Note 6) 82,624(2) 29,716 (5,140) Interest rate swap agreements —— — Futures contracts 3,932 5,717 10,767 Foreign currency transactions (366) (53) 133 Forward foreign currency exchange contracts —— — Net changes in unrealized appreciation (depreciation) on: Investments 92,822(3) 234,232 213,973 Interest rate swap agreements —— — Futures contracts (219) (228) 38 Foreign currency translations 22 64 91 Forward foreign currency exchange contracts —— — Net Gains 178,815 269,448 219,862 NetIncreaseinNetAssetsResultingfromOperations $181,648 $275,087 $239,060

(1) Net of $1,024, $1,181, $1,418, $152, $395 and $114, respectively, in foreign withholding taxes. (2) Net of foreign capital gains tax paid of $382 and $19, respectively. (3) Net change in unrealized deferred foreign capital gains tax of $928.

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 12 NORTHERN FUNDS ANNUAL REPORT FOR THE FISCAL YEAR ENDED MARCH 31, 2021

MULTI-MANAGER MULTI-MANAGER NORTHERN EMERGING MARKETS MULTI-MANAGER GLOBAL REAL ESTATE ENGAGE360TM DEBT OPPORTUNITY HIGH YIELD FUND FUND FUND OPPORTUNITY FUND

$4,062(1) $5,943(1) $— $— ——— — 454 5 — 2 8,878(1) 13,362 4,066 5,950 8,882 13,367

1,364 2,261 1,399 1,555 61 77 72 40 59 128 63 72 20 22 20 21 20 23 15 16 39 39 39 49 3—— 6 676 6 ——— 1 ——56— 22 20 22 14 1,594 2,577 1,692 1,780 (182) (250) (92) (174) — — (56) — 1,412 2,327 1,544 1,606 2,654 3,623 7,338 11,761

575 10,954 (6,096)(2) (13,782) ——45— —2,874— — 29 197 (236) — — 360 827 —

38,502 122,838 23,589 46,172 — — (113) — — (182) — — (4) (47) 131 — — 605 54 — 39,102 137,599 18,201 32,390 $41,756 $141,222 $25,539 $44,151

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 13 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS

STATEMENTS OF CHANGES IN NET ASSETS

ACTIVE M MULTI-MANAGER EMERGING ACTIVE M GLOBAL LISTED MARKETS INTERNATIONAL INFRASTRUCTURE EQUITY FUND EQUITY FUND FUND Amounts in thousands 2021 2020 2021 2020 2021 2020 OPERATIONS: Net investment income (Note 6) $2,833 $11,616 $5,639 $15,891 $19,198 $26,218 Net realized gains (losses) (Note 6) 86,190 26,739 35,380 (17,600) 5,760 24,223 Net change in unrealized appreciation (depreciation) 92,625 (125,644) 234,068 (122,609) 214,102 (168,736) Net Increase (Decrease) in Net Assets Resulting from Operations 181,648 (87,289) 275,087 (124,318) 239,060 (118,295) CAPITAL SHARE TRANSACTIONS: Net increase (decrease) in net assets resulting from capital share transactions (50,970) (345,304) (144,908) (183,049) 54,342 31,394 Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions (50,970) (345,304) (144,908) (183,049) 54,342 31,394 DISTRIBUTIONS PAID: Distributable earnings (30,239) (45,400) (5,234) (50,146) (22,028) (26,473) Total Distributions Paid (30,239) (45,400) (5,234) (50,146) (22,028) (26,473) Total Increase (Decrease) in Net Assets 100,439 (477,993) 124,945 (357,513) 271,374 (113,374) NET ASSETS: Beginning of year 338,370 816,363 558,183 915,696 896,220 1,009,594 End of year $438,809 $338,370 $683,128 $558,183 $1,167,594 $896,220

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 14 NORTHERN FUNDS ANNUAL REPORT FOR THE FISCAL YEARS ENDED MARCH 31,

MULTI-MANAGER MULTI-MANAGER NORTHERN EMERGING MARKETS MULTI-MANAGER GLOBAL REAL ESTATE ENGAGE360TM DEBT OPPORTUNITY HIGH YIELD FUND FUND FUND OPPORTUNITY FUND 2021 2020 2021 2020 2021 2020 2021 2020

$2,654 $2,317 $3,623 $4,385 $7,338 $8,946 $11,761 $20,760 604 (2,014) 14,385 (2,267) (5,460) (4,648) (13,782) (3,729) 38,498 (19,895) 123,214 (34,518) 23,661 (24,361) 46,172 (39,748)

41,756 (19,592) 141,222 (32,400) 25,539 (20,063) 44,151 (22,717)

43,914 23,582 17,046 52,553 (11,786) (17,119) (71,396) (108,057)

43,914 23,582 17,046 52,553 (11,786) (17,119) (71,396) (108,057)

(3,046) (4,336) (3,438) (4,322) (1,403) (4,297) (12,426) (20,934) (3,046) (4,336) (3,438) (4,322) (1,403) (4,297) (12,426) (20,934) 82,624 (346) 154,830 15,831 12,350 (41,479) (39,671) (151,708)

98,568 98,914 245,669 229,838 132,714 174,193 214,288 365,996 $181,192 $98,568 $400,499 $245,669 $145,064 $132,714 $174,617 $214,288

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 15 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS

FINANCIAL HIGHLIGHTS

ACTIVE M EMERGING MARKETS EQUITY FUND Selected per share data 2021 2020 2019 2018 2017 Net Asset Value, Beginning of Year $14.61 $19.49 $22.55 $18.05 $15.36 INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net investment income 0.15(1) 0.59 0.42 0.28 0.20 Net realized and unrealized gains (losses) 8.93(2) (3.84) (3.30) 4.22 2.79 Total from Investment Operations 9.08 (3.25) (2.88) 4.50 2.99 LESS DISTRIBUTIONS PAID: From net investment income(3) (0.20) (0.88) (0.18) — (0.30) From net realized gains (1.32) (0.75) — — — Total Distributions Paid (1.52) (1.63) (0.18) — (0.30) Net Asset Value, End of Year $22.17 $14.61 $19.49 $22.55 $18.05

Total Return(4) 62.55%(1) (18.77)% (12.71)% 24.93% 19.75% SUPPLEMENTAL DATA AND RATIOS: Net assets, in thousands, end of year $438,809 $338,370 $816,363 $1,268,985 $962,121 Ratio to average net assets of: Expenses, net of reimbursements and credits(5) 1.10% 1.10% 1.10% 1.10% 1.15%(6) Expenses, before reimbursements and credits 1.25% 1.26% 1.21% 1.21% 1.28%(6) Net investment income, net of reimbursements and credits(5) 0.72% 1.85% 1.61% 1.34% 1.13%(6) Net investment income, before reimbursements and credits 0.57% 1.69% 1.50% 1.23% 1.00%(6) Portfolio Turnover Rate 134.29% 81.32% 80.98% 36.14% 59.52%

(1) The Northern Trust Company reimbursed the Fund approximately $41,000. The reimbursements represent less than $0.01 per share. Without these reimbursements, the total return would have been 62.53%. See Note 6. (2) The Fund received reimbursements from Northern Trust Investments, Inc. of approximately $3,000. The reimbursements represents less than $0.01 per share and had no effect on the Fund’s total return. See Note 6. (3) Distributions to shareholders from net investment income include amounts related to foreign currency transactions, which are treated as ordinary income for federal income tax purposes. (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 net asset value at the end of the year. (5) The net expenses and net investment income ratios include additional reimbursements of management fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $10,000, $17,000, $42,000 and $46,000, which represent less than 0.01 percent of average net assets for the fiscal years ended March 31, 2021, 2020, 2019 and 2018, respectively, and approximately $ 36,000, which represents less than 0.005 percent of average net assets for the fiscal year ended March 31, 2017. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses would have been increased by a corresponding amount. (6) Effective June 15, 2016, the investment adviser reduced the management fee paid by the Fund and agreed to increase the expense reimbursement it provides the Fund by contractually limiting the Fund’s total expenses (other than certain excepted expenses noted in the Notes to the Financial Statements) to 1.10%. Prior to June 15, 2016, the expense limitation had been 1.35%.

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 16 NORTHERN FUNDS ANNUAL REPORT FOR THE FISCAL YEARS ENDED MARCH 31,

ACTIVE M INTERNATIONAL EQUITY FUND Selected per share data 2021 2020 2019 2018 2017 Net Asset Value, Beginning of Year $8.09 $10.38 $11.70 $9.95 $9.35 INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net investment income 0.13(1) 0.21 0.22 0.17 0.16 Net realized and unrealized gains (losses) 4.69(2) (1.85) (0.91) 1.74 0.60 Total from Investment Operations 4.82 (1.64) (0.69) 1.91 0.76 LESS DISTRIBUTIONS PAID: From net investment income(3) (0.10) (0.26) (0.29) (0.16) (0.16) From net realized gains — (0.39) (0.34) — — Total Distributions Paid (0.10) (0.65) (0.63) (0.16) (0.16) Net Asset Value, End of Year $12.81 $8.09 $10.38 $11.70 $9.95

Total Return(4) 59.61%(1) (17.49)% (5.32)% 19.17% 8.27% SUPPLEMENTAL DATA AND RATIOS: Net assets, in thousands, end of year $683,128 $558,183 $915,696 $1,390,844 $1,156,348 Ratio to average net assets of: Expenses, net of reimbursements and credits(5) 0.85% 0.85% 0.84% 0.84% 0.92%(6) Expenses, before reimbursements and credits 0.92% 0.93% 0.94% 0.93% 1.01%(6) Net investment income, net of reimbursements and credits(5) 0.93% 1.86% 1.75% 1.49% 1.41%(6) Net investment income, before reimbursements and credits 0.86% 1.78% 1.65% 1.40% 1.32%(6) Portfolio Turnover Rate 51.34% 39.52% 35.11% 65.70% 115.17%

(1) The Northern Trust Company reimbursed the Fund approximately $26,000. The reimbursements represent less than $0.01 per share. Without these reimbursements, the total return would have been 59.59%. See Note 6. (2) The Fund received reimbursements from Northern Trust Investments, Inc. of approximately $6,000. The reimbursements represents less than $0.01 per share and had no effect on the Fund’s total return. See Note 6. (3) Distributions to shareholders from net investment income include amounts related to foreign currency transactions, which are treated as ordinary income for federal income tax purposes. (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 net asset value at the end of the year. (5) The net expenses and net investment income ratios include additional reimbursements of management fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $17,000, $45,000, $66,000, $77,000 and $71,000 which represent less than 0.01 percent of average net assets for the fiscal years ended March 31, 2021, 2020, 2019, 2018 and 2017, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses would have been increased by a corresponding amount. (6) Effective June 15, 2016, the investment adviser reduced the management fee paid by the Fund and agreed to increase the expense reimbursement it provides the Fund by contractually limiting the Fund’s total expenses (other than certain excepted expenses noted in the Notes to the Financial Statements) to 0.84%. Prior to June 15, 2016, the expense limitation had been 1.20%.

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 17 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS

FINANCIAL HIGHLIGHTS continued

MULTI-MANAGER GLOBAL LISTED INFRASTRUCTURE FUND Selected per share data 2021 2020 2019 2018 2017 Net Asset Value, Beginning of Year $10.48 $12.09 $12.83 $12.97 $11.76 INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net investment income 0.21 0.31 0.36 0.38 0.28 Net realized and unrealized gains (losses) 2.47(1) (1.61) 0.08 0.51 1.22 Total from Investment Operations 2.68 (1.30) 0.44 0.89 1.50 LESS DISTRIBUTIONS PAID: From net investment income(2) (0.20) (0.31) (0.43) (0.44) (0.29) From net realized gains (0.04) — (0.75) (0.59) — Total Distributions Paid (0.24) (0.31) (1.18) (1.03) (0.29) Net Asset Value, End of Year $12.92 $10.48 $12.09 $12.83 $12.97

Total Return(3) 25.81% (11.09)% 4.24% 6.62% 12.96% SUPPLEMENTAL DATA AND RATIOS: Net assets, in thousands, end of year $1,167,594 $896,220 $1,009,594 $1,205,762 $1,248,307 Ratio to average net assets of: Expenses, net of reimbursements and credits(4) 0.96% 0.98% 1.00% 1.00% 1.00% Expenses, before reimbursements and credits 0.96% 0.98% 1.02% 1.02% 1.02% Net investment income, net of reimbursements and credits(4) 1.78% 2.45% 2.81% 2.59% 2.24% Net investment income, before reimbursements and credits 1.78% 2.45% 2.79% 2.57% 2.22% Portfolio Turnover Rate 60.11% 80.41% 38.64% 44.40% 81.27%

(1) The Fund received reimbursements from Northern Trust Investments, Inc. of approximately $5,000. The reimbursements represents less than $0.01 per share and had no effect on the Fund’s total return. See Note 6. (2) Distributions to shareholders from net investment income include amounts related to foreign currency transactions, which are treated as ordinary income for federal income tax purposes. (3) Assumes investment at net asset value at the beginning of the year, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the year. (4) The net expenses and net investment income ratios include additional reimbursements of management fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $41,000, $77,000, $66,000, $97,000 and $52,000, which represent less than 0.01 percent of average net assets for the fiscal years ended March 31, 2021, 2020, 2019, 2018 and 2017, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses would have been increased by a corresponding amount.

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 18 NORTHERN FUNDS ANNUAL REPORT FOR THE FISCAL YEARS ENDED MARCH 31,

MULTI-MANAGER GLOBAL REAL ESTATE FUND Selected per share data 2021 2020 2019 2018 2017 Net Asset Value, Beginning of Year $8.67 $11.12 $10.38 $10.63 $11.91 INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net investment income 0.21 0.29 0.31 0.07 0.30 Net realized and unrealized gains (losses) 2.68(1) (2.28) 1.01 0.35 (0.04) Total from Investment Operations 2.89 (1.99) 1.32 0.42 0.26 LESS DISTRIBUTIONS PAID: From net investment income(2) (0.19) (0.46) (0.46) (0.57) (0.48) From net realized gains — — (0.12) (0.10) (1.06) Total Distributions Paid (0.19) (0.46) (0.58) (0.67) (1.54) Net Asset Value, End of Year $11.37 $8.67 $11.12 $10.38 $10.63

Total Return(3) 33.59%(4) (18.86)% 13.28% 3.93% 2.72% SUPPLEMENTAL DATA AND RATIOS: Net assets, in thousands, end of year $181,192 $98,568 $98,914 $76,973 $218,174 Ratio to average net assets of: Expenses, net of reimbursements and credits(5) 0.92% 0.94% 0.94% 0.92% 0.96%(6) Expenses, before reimbursements and credits 1.04% 1.10% 1.20% 1.09% 1.10%(6) Net investment income, net of reimbursements and credits(5) 1.73% 2.18% 2.47% 2.97% 1.79%(6) Net investment income, before reimbursements and credits 1.61% 2.02% 2.21% 2.80% 1.65%(6) Portfolio Turnover Rate 81.36% 62.47% 66.43% 144.67% 167.04%

(1) The Fund received reimbursements from Northern Trust Investments, Inc. of approximately $1,000. The reimbursements represents less than $0.01 per share and had no effect on the Fund’s total return. See Note 6. (2) Distributions to shareholders from net investment income include amounts related to foreign currency transactions, which are treated as ordinary income for federal income tax purposes. (3) Assumes investment at net asset value at the beginning of the year, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the year. (4) During the fiscal year ended March 31, 2021, the Fund received monies related to certain nonrecurring litigation proceeds. If these monies were not received, the total return would have been 33.09%. (5) The net expenses and net investment income ratios include additional reimbursements of management fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $6,000, $5,000, $3,000, $8,000 and $16,000, which represent less than 0.01 percent of average net assets for the fiscal years ended March 31, 2021, 2020, 2019, 2018 and 2017, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses would have been increased by a corresponding amount. (6) Effective June 15, 2016, the investment adviser reduced the management fee paid by the Fund and agreed to increase the expense reimbursement it provides the Fund by contractually limiting the Fund’s total expenses (other than certain excepted expenses noted in the Notes to the Financial Statements) to 0.91%. Prior to June 15, 2016, the expense limitation had been 1.10%.

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 19 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS

FINANCIAL HIGHLIGHTS continued

NORTHERN ENGAGE360TM FUND Selected per share data 2021 2020 2019 2018(1) Net Asset Value, Beginning of Period $8.78 $10.03 $10.17 $10.00 INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net investment income 0.12 0.15 0.09 0.05 Net realized and unrealized gains (losses) 4.86(2) (1.24) (0.14) 0.13 Total from Investment Operations 4.98 (1.09) (0.05) 0.18 LESS DISTRIBUTIONS PAID: From net investment income (0.12) (0.16) (0.09) (0.01) From net realized gains ———(3) — Total Distributions Paid (0.12) (0.16) (0.09) (0.01) Net Asset Value, End of Period $13.64 $8.78 $10.03 $10.17

Total Return(4) 56.79% (11.22)% (0.36)% 1.80% SUPPLEMENTAL DATA AND RATIOS: Net assets, in thousands, end of period $400,499 $245,669 $229,838 $98,123 Ratio to average net assets of:(5) Expenses, net of reimbursements and credits(6) 0.70% 0.70% 0.70% 0.70% Expenses, before reimbursements and credits 0.77% 0.80% 0.88% 1.08% Net investment income, net of reimbursements and credits(6) 1.08% 1.57% 1.60% 1.54%(7) Net investment income, before reimbursements and credits 1.01% 1.47% 1.42% 1.16%(7) Portfolio Turnover Rate 41.71% 32.99% 48.63% 7.21%

(1) Commenced investment operations on November 20, 2017. (2) The Fund received reimbursements from Northern Trust Investments, Inc. of approximately $1,000. The reimbursements represents less than $0.01 per share and had no effect on the Fund’s total return. See Note 6. (3) Per share amounts from distributions paid from net realized gains were less than $0.01 per share. (4) Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. The total return is not annualized for periods less than one year. (5) Annualized for periods less than one year. (6) The net expenses and net investment income ratios include additional reimbursements of management fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $9,000, $16,000, $11,000 and $2,000, which represent less than 0.01 percent of average net assets for the fiscal years ended March 31, 2021, 2020 and 2019 and for the period from November 20, 2017 (commencement of operations) to March 31, 2018, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses would havebeen increased by a corresponding amount. (7) As the Fund commenced investment operations on November 20, 2017, annualized net investment income may not be reflective of actual amounts the Fund might obtain in a full year of operation.

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 20 NORTHERN FUNDS ANNUAL REPORT FOR THE FISCAL YEARS AND PERIOD ENDED MARCH 31,

MULTI-MANAGER EMERGING MARKETS DEBT OPPORTUNITY FUND Selected per share data 2021 2020 2019 2018 2017 Net Asset Value, Beginning of Year $7.62 $9.05 $9.68 $9.32 $8.89 INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net investment income 0.44(1) 0.52 0.51 0.55 0.53 Net realized and unrealized gains (losses) 0.93(2) (1.70) (0.85) 0.30 0.03 Total from Investment Operations 1.37 (1.18) (0.34) 0.85 0.56 LESS DISTRIBUTIONS PAID: From net investment income(3) (0.08) (0.25) (0.29) (0.49) (0.13) Return of capital —————(4) Total Distributions Paid (0.08) (0.25) (0.29) (0.49) (0.13) Net Asset Value, End of Year $8.91 $7.62 $9.05 $9.68 $9.32

Total Return(5) 17.93% (13.20)% (3.39)% 9.30% 6.32% SUPPLEMENTAL DATA AND RATIOS: Net assets, in thousands, end of year $145,064 $132,714 $174,193 $189,630 $98,397 Ratio to average net assets of: Expenses, net of reimbursements and credits(6) 0.97% 0.94% 0.95% 0.94% 0.95% Expenses, before reimbursements and credits 1.03% 1.02% 1.05% 1.05% 1.14% Net investment income, net of reimbursements and credits(6) 4.45% 5.44% 5.67% 5.36% 5.48% Net investment income, before reimbursements and credits 4.39% 5.36% 5.57% 5.25% 5.29% Portfolio Turnover Rate 71.26% 73.25% 82.84% 99.56% 210.59%

(1) The Northern Trust Company reimbursed the Fund approximately $56,000. The reimbursement represents less than $0.01 per share and had no effect on the Fund’s total return. See Note 6. (2) The Northern Trust Company reimbursed the Fund approximately $58,000. The reimbursement represents less than $0.01 per share and had no effect on the Fund’s total return. See Note 6. (3) Distributions to shareholders from net investment income include amounts related to foreign currency transactions, which are treated as ordinary income for federal income tax purposes. (4) Per share amounts from distributions paid from return of capital were less than $0.01 per share. (5) 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. (6) The net expenses and net investment income ratios include additional reimbursements of management or advisory fees, as applicable, incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $6,000, $9,000, $11,000, $13,000 and $8,000, which represent less than 0.01 percent of average net assets for the fiscal years ended March 31, 2021, 2020, 2019, 2018 and 2017, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses would have been increased by a corresponding amount.

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 21 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS

FINANCIAL HIGHLIGHTS continued FOR THE FISCAL YEARS ENDED MARCH 31,

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND Selected per share data 2021 2020 2019 2018 2017 Net Asset Value, Beginning of Year $7.97 $9.56 $9.81 $10.01 $9.01 INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net investment income 0.58 0.63 0.60 0.63 0.63 Net realized and unrealized gains (losses) 1.46 (1.59) (0.25) (0.20) 0.91 Total from Investment Operations 2.04 (0.96) 0.35 0.43 1.54 LESS DISTRIBUTIONS PAID: From net investment income(1) (0.60) (0.63) (0.60) (0.63) (0.54) From net realized gains ————— Total Distributions Paid (0.60) (0.63) (0.60) (0.63) (0.54) Net Asset Value, End of Year $9.41 $7.97 $9.56 $9.81 $10.01

Total Return(2) 26.25% (10.79)% 3.75% 4.37% 17.41% SUPPLEMENTAL DATA AND RATIOS: Net assets, in thousands, end of year $174,617 $214,288 $365,996 $265,410 $322,859 Ratio to average net assets of: Expenses, net of reimbursements and credits(3) 0.85% 0.86% 0.86% 0.86% 0.87%(4) Expenses, before reimbursements and credits 0.95% 0.95% 0.98% 0.99% 0.99%(4) Net investment income, net of reimbursements and credits(3) 6.27% 6.57% 6.23% 6.26% 6.51%(4) Net investment income, before reimbursements and credits 6.17% 6.48% 6.11% 6.13% 6.39%(4) Portfolio Turnover Rate 91.41% 63.55% 80.62% 66.18% 92.50%

(1) Distributions to shareholders from net investment income include amounts related to foreign currency transactions, which are treated as ordinary income for federal income tax purposes. (2) Assumes investment at net asset value at the beginning of the year, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the year. (3) The net expenses and net investment income ratios include additional reimbursements of management fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $7,000, $18,000, $31,000, $18,000 and $25,000 which represent less than 0.01 percent of average net assets for the fiscal years ended March 31, 2021, 2020, 2019, 2018 and 2017, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses would have been increased by a corresponding amount. (4) Effective June 15, 2016, the investment adviser reduced the management fee paid by the Fund and agreed to increase the expense reimbursement it provides the Fund by contractually limiting the Fund’s total expenses (other than certain excepted expenses noted in the Notes to the Financial Statements) to 0.85%. Prior to June 15, 2016, the expense limitation had been 0.90%.

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 22 NORTHERN FUNDS ANNUAL REPORT SCHEDULE OF INVESTMENTS

ACTIVE M EMERGING MARKETS EQUITY FUND MARCH 31, 2021

NUMBER VALUE NUMBER VALUE OF SHARES (000S) OF SHARES (000S) COMMON STOCKS – 93.0% (1) COMMON STOCKS – 93.0% (1) continued Argentina – 0.0% China – 20.3% continued MercadoLibre, Inc.* 56 $82 Dongfeng Motor Group Co. Ltd., 3,780,924 $3,529 Australia–0.1% Class H Ganfeng Lithium Co. Ltd., Class H 76,000 937 Fortescue Metals Group Ltd. 14,927 228 Industrial & Commercial Bank of China Brazil – 4.4% Ltd., Class H 4,139,000 2,976 Ambev S.A. ADR 1,714,782 4,698 JD.com, Inc., Class A* 83,600 3,520 Hapvida Participacoes e Investimentos Jiangsu Hengli Hydraulic Co. Ltd., S.A. 192,900 509 Class A 102,700 1,406 Localiza Rent a Car S.A.* 11,000 117 Kweichow Moutai Co. Ltd., Class A 2,400 738 Locaweb Servicos de Internet S.A.* 50,900 207 Li Ning Co. Ltd. 326,000 2,130 Notre Dame Intermedica Participacoes LONGi Green Energy Technology Co. S.A. 18,000 265 Ltd., Class A 45,100 613 Petroleo Brasileiro S.A. ADR 109,682 930 Meituan, Class B* 30,100 1,160 StoneCo Ltd., Class A* 3,418 209 Midea Group Co. Ltd., Class A 87,700 1,101 Suzano S.A.* 562,853 6,881 NetEase, Inc. 92,600 1,914 Vale S.A. ADR 242,553 4,216 Ping An Insurance Group Co. of China WEG S.A. 104,000 1,384 Ltd., Class H 282,500 3,374 19,416 Shenzhen Inovance Technology Co. Chile – 0.1% Ltd., Class A 154,000 2,013 Banco Santander Chile ADR 15,760 391 Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A 15,100 923 China – 20.3% Silergy Corp. 11,400 934 Airtac International Group 110,000 3,907 TAL Education Group ADR* 16,606 894 Alibaba Group Holding Ltd.* 149,100 4,219 Tencent Holdings Ltd. 115,700 9,121 Alibaba Group Holding Ltd. ADR* 36,472 8,269 Trip.com Group Ltd. ADR* 41,870 1,659 Anhui Conch Cement Co. Ltd., Class H 387,500 2,523 Want Want China Holdings Ltd. 3,788,969 2,845 ANTA Sports Products Ltd. 105,000 1,718 Wuliangye Yibin Co. Ltd., Class A 44,100 1,809 Baidu, Inc. ADR* 18,946 4,122 Wuxi Biologics Cayman, Inc.* 79,000 996 BYD Co. Ltd., Class H 24,500 525 Zoomlion Heavy Industry Science and Centre Testing International Group Co. Technology Co. Ltd., Class H 398,800 572 Ltd., Class A 229,400 999 89,188 China Construction Bank Corp., Class H 1,120,000 942 Egypt – 0.8% China International Capital Corp. Ltd., Commercial International Bank Egypt Class H* 2,067,600 5,036 S.A.E. 914,385 3,361 China Life Insurance Co. Ltd., Class H 708,000 1,466 France – 0.5% China Longyuan Power Group Corp. LVMH Moet Hennessy Louis Vuitton S.E. 2,074 1,382 Ltd., Class H 458,000 626 Sartorius Stedim Biotech 1,324 545 China Merchants Bank Co. Ltd., Teleperformance 441 161 Class H 252,500 1,932 2,088 China Vanke Co. Ltd., Class H 405,500 1,590 CITIC Securities Co. Ltd., Class H 924,500 2,126 Hong Kong – 2.5% 459,600 5,591 Contemporary Amperex Technology AIA Group Ltd. Co. Ltd., Class A 50,880 2,515 Alibaba Health Information Technology 46,000 131 Country Garden Services Holdings Co. Ltd.* Ltd. 148,000 1,509 China Resources Cement Holdings Ltd. 1,320,000 1,485 Galaxy Entertainment Group Ltd.* 205,000 1,854

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 23 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

ACTIVE M EMERGING MARKETS EQUITY FUND continued

NUMBER VALUE NUMBER VALUE OF SHARES (000S) OF SHARES (000S) COMMON STOCKS – 93.0% (1) continued COMMON STOCKS – 93.0% (1) continued Hong Kong – 2.5% continued Mexico – 5.4% continued Hong Kong Exchanges & Clearing Ltd. 11,800 $698 Grupo Financiero Banorte S.A.B. de Techtronic Industries Co. Ltd. 62,500 1,075 C.V., Series O* 198,800 $1,121 Grupo Mexico S.A.B. de C.V., Series B 1,160,297 6,116 10,834 Telesites S.A.B. de C.V.* 2,554 3 Hungary – 0.2% Wal-Mart de Mexico S.A.B. de C.V. 2,656,700 8,390 OTP Bank Nyrt.* 14,699 628 Richter Gedeon Nyrt. 7,350 217 23,613 Netherlands – 0.4% 845 ASML Holding N.V. 1,871 1,141 India – 11.1% Prosus N.V.* 6,601 736 Asian Paints Ltd. 42,497 1,477 Escorts Ltd. 116,281 2,051 1,877 HDFC Bank Ltd.* 116,344 2,368 Peru – 0.9% HDFC Bank Ltd. ADR* 13,981 1,086 Cia de Minas Buenaventura S.A.A. 119,824 1,202 Hero MotoCorp Ltd. 124,543 4,969 ADR* 18,621 2,543 Housing Development Finance Corp. Credicorp Ltd. Ltd. 218,111 7,480 Southern Copper Corp. 5,338 362 ICICI Bank Ltd. ADR* 248,265 3,980 4,107 Infosys Ltd. ADR 245,771 4,601 Philippines – 0.1% Mahindra & Mahindra Ltd. 16,916 184 SM Investments Corp. 19,569 387 198,425 548 Motherson Sumi Systems Ltd. Poland – 0.2% 173,012 4,755 Reliance Industries Ltd. Dino Polska S.A.* 3,079 203 307,647 13,391 Tata Consultancy Services Ltd. KGHM Polska Miedz S.A.* 12,545 604 Tata Motors Ltd. ADR* 16,410 341 807 UltraTech Cement Ltd. 16,780 1,549 Russia – 1.8% 48,780 LUKOIL PJSC ADR 41,124 3,327 Indonesia – 2.2% Sberbank of Russia PJSC ADR 224,706 3,463 9,188,908 3,353 Astra International Tbk PT X5 Retail Group N.V. GDR (Registered) 4,194 135 1,044,800 2,239 Bank Central Asia Tbk PT Yandex N.V., Class A (NASDAQ Bank Mandiri Persero Tbk PT 1,096,500 465 Exchange)* 12,700 814 Bank Rakyat Indonesia Persero Tbk PT* 9,531,700 2,893 7,739 Vale Indonesia Tbk PT* 1,671,300 506 Singapore – 0.4% 9,456 DBS Group Holdings Ltd. 34,900 753 Japan – 0.1% Sea Ltd. ADR* 3,565 796 TokyoElectronLtd. 1,350 578 1,549 Mexico–5.4% SouthAfrica–5.8% 3,269,688 1,896 Alfa S.A.B. de C.V., Class A Anglo American Platinum Ltd. 16,348 2,396 America Movil S.A.B. de C.V., Class L AngloGold Ashanti Ltd. 29,275 640 ADR 268,426 3,645 Aspen Pharmacare Holdings Ltd.* 156,815 1,533 Cemex S.A.B. de C.V., Series CPO* 1,664,000 1,170 Bid Corp. Ltd.* 139,260 2,699 Controladora Nemak S.A.B. de C.V.* 2,758,088 345 Bidvest Group (The) Ltd. 392,475 4,529 Grupo Aeroportuario del Sureste S.A.B. Clicks Group Ltd. 14,791 241 de C.V., Series B* 21,120 375 FirstRand Ltd. 133,454 466 Grupo Bimbo S.A.B. de C.V., Series A 262,747 552 Naspers Ltd., Class N 36,559 8,767

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 24 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

NUMBER VALUE NUMBER VALUE OF SHARES (000S) OF SHARES (000S) COMMON STOCKS – 93.0% (1) continued COMMON STOCKS – 93.0% (1) continued South Africa – 5.8% continued Thailand – 1.4% Standard Bank Group Ltd. 273,751 $2,324 Airports of Thailand PCL NVDR 217,300 $481 Truworths International Ltd. 583,529 1,891 CP ALL PCL (Registered) 1,165,100 2,582 25,486 Kasikornbank PCL NVDR 425,400 1,979 South Korea – 19.2% PTT Exploration & Production PCL NVDR 329,400 1,201 Amorepacific Corp. 22,411 5,130 Hana Financial Group, Inc. 25,713 970 6,243 Hyundai Mobis Co. Ltd. 11,462 2,976 Turkey–0.5% Hyundai Motor Co. 74,191 14,392 Turkcell Iletisim Hizmetleri A.S. 1,258,194 2,280 Kakao Corp. 4,034 1,782 United Arab Emirates – 0.6% Kia Motors Corp. 38,002 2,797 Emaar Properties PJSC* 2,866,590 2,767 LG Chem Ltd. 5,163 3,691 United States – 1.8% LG Household & Health Care Ltd. 704 979 Citigroup, Inc. 9,090 661 NAVER Corp. 5,418 1,812 Copa Holdings S.A., Class A* 28,964 2,340 NHN KCP Corp.* 993 44 Estee Lauder (The) Cos., Inc., Class A 3,300 960 NICE Information Service Co. Ltd. 24,771 556 NIKE, Inc., Class B 6,080 808 Orion Corp. 33,349 3,873 NVIDIA Corp. 745 398 POSCO 27,682 7,933 Tenaris S.A. ADR 123,931 2,812 Samsung Biologics Co. Ltd.* 683 453 7,979 Samsung Electronics Co. Ltd. 331,697 23,959 Uruguay – 0.2% Shinhan Financial Group Co. Ltd. 149,687 4,963 Globant S.A.* 4,328 898 SK Hynix, Inc. 68,817 8,104 Total Common Stocks 84,414 (Cost $307,797) 408,067 Sweden – 0.2% Atlas Copco AB, Class A 6,464 394 PREFERRED STOCKS – 2.1% (1) 16,615 376 Epiroc AB, Class A Brazil – 1.0% 770 Banco Bradesco S.A. ADR* 47,400 223 Taiwan – 11.8% Itau Unibanco Holding S.A. ADR, (2) Accton Technology Corp. 29,000 281 0.65% 712,078 3,532 (2) Delta Electronics, Inc. 175,000 1,783 Petroleo Brasileiro S.A., 3.28% 189,000 812 Globalwafers Co. Ltd. 67,598 1,797 4,567 Hon Hai Precision Industry Co. Ltd. 2,166,796 9,504 South Korea – 1.1% MediaTek, Inc. 231,000 7,939 Samsung Electronics Co. Ltd., 1.86%(2) 74,210 4,801 Nien Made Enterprise Co. Ltd. 69,000 964 Total Preferred Stocks Realtek Semiconductor Corp. 123,000 2,152 (Cost $6,996) 9,368 Taiwan Semiconductor Manufacturing Co. Ltd. 396,000 8,234 PRINCIPAL AMOUNT VALUE Taiwan Semiconductor Manufacturing (000S) (000S) Co. Ltd. ADR 142,000 16,796 FOREIGN ISSUER BONDS – 0.1% 168,000 300 United Microelectronics Corp. United Kingdom – 0.1% 63,300 577 United Microelectronics Corp. ADR HSBC Bank PLC, Vanguard International Semiconductor 0.00%, 9/12/22 (3) $18 $480 Corp. 413,000 1,577 Total Foreign Issuer Bonds 51,904 (Cost $462) 480

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 25 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

ACTIVE M EMERGING MARKETS EQUITY FUND continued

NUMBER VALUE OF WARRANTS (000S) MSCI – Morgan Stanley Capital International WARRANTS – 0.1% JP Morgan Structured Products, Exp. N.V. – Naamloze Vennootschap (Dutch: Limited Liability Company) 10/18/21, Strike $0.00* 47,840 $196 NVDR – Non-Voting Depositary Receipt Total Warrants (Cost $197) 196 PCL – Public Company Limited

NUMBER VALUE PJSC – Public Joint-Stock Company OF SHARES (000S) INVESTMENT COMPANIES – 4.7% PLC – Public Limited Company iShares Core S&P 500 ETF 11,400 $4,535 S&P – Standard & Poor’s Northern Institutional Funds - U.S. Government Portfolio (Shares), S.A. – Société Anonyme (French: Public Limited Company) 0.00%(4) (5) 16,144,670 16,145 Total Investment Companies S.A.B. de C.V. – Sociedad Anónima Bursátil de Capital Variable (Mexico: Public (Cost $20,510) 20,680 Company)

PRINCIPAL S.E. – Societas Europaea (German: Public Company) AMOUNT VALUE (000S) (000S) Percentages shown are based on Net Assets. SHORT-TERM INVESTMENTS – 0.4% At March 31, 2021, the Fund had open futures contracts as follows: U.S. Treasury Bill, 0.06%, 7/15/21(6) (7) $1,990 $1,990 VALUE AND Total Short-Term Investments UNREALIZED NOTIONAL APPRECIATION (Cost $1,990) 1,990 NUMBER OF AMOUNT CONTRACT CONTRACT (DEPRECIATION) TYPE CONTRACTS (000S) POSITION EXP. (000S)(1)

Total Investments – 100.4% MSCI Emerging (Cost $337,952) 440,781 Markets Index Liabilities less Other Assets – (0.4%) (1,972) (United States Net Assets – 100.0% $438,809 Dollar) 142 $9,390 Long 6/21 $(28)

(1) Adjustment factors obtained from an independent evaluation service were (1) Includes cumulative appreciation/depreciation on futures contracts. Only the used to determine the value of certain foreign securities. current day’s variation margin is reported within the Statements of Assets and (2) Current yield is disclosed. Dividends are calculated based on a percentage Liabilities. of the issuer’s net income. (3) Zero coupon bond. (4) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds. (5) 7-day current yield as of March 31, 2021 is disclosed. (6) Discount rate at the time of purchase. (7) Security pledged as collateral to cover margin requirements for open futures contracts. * Non-Income Producing Security

EXPLANATION OF ABBREVIATIONS AND ACRONYMS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

AB – Aktiebolag (Sweden: Corporation)

ADR – American Depositary Receipt

CPO – Certificado de Participación Ordinario

ETF – Exchange-Traded Fund

GDR – Global Depositary Receipt

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 26 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

At March 31, 2021, the industry sectors for the Fund were: The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuations of the %OFNET INDUSTRY SECTOR ASSETS Fund’s investments by the above fair value hierarchy as of March 31, 2021: Communication Services 6.0% LEVEL 1 LEVEL 2 LEVEL 3 TOTAL Consumer Discretionary 17.1 INVESTMENTS (000S) (000S) (000S) (000S) Consumer Staples 8.2 Common Stocks: Energy 3.1 Argentina $82$— $—$82 Brazil 19,416 — — 19,416 Financials 17.6 Chile 391 — — 391 Health Care 1.3 China 14,944 74,244 — 89,188 6.6 Industrials Egypt 3,361 — — 3,361 Information Technology 25.3 India 10,008 38,772 — 48,780 Materials 10.0 Mexico 23,613 — — 23,613 Real Estate 1.0 Peru 4,107 — — 4,107 Russia 814 6,925 — 7,739 Short-Term Investments 4.1 Singapore 796 753 — 1,549 Utilities 0.1 Taiwan 17,373 34,531 — 51,904 100.4 Total Investments United States 7,979 — — 7,979 Liabilities less Other Assets (0.4) Uruguay 898 — — 898 Net Assets 100.0% All Other Countries(1) — 149,060 — 149,060 Total Common Stocks 103,782 304,285 — 408,067 At March 31, 2021, the Fund’s investments were denominated in the following Preferred Stocks: currencies: Brazil 4,567 — — 4,567 South Korea — 4,801 — 4,801 %OFNET CONCENTRATION BY CURRENCY ASSETS Total Preferred Stocks 4,567 4,801 — 9,368 Foreign Issuer Bonds — 480 — 480 United States Dollar 24.0% Warrants — 196 — 196 Korean Won 20.3 Investment Companies 20,680 — — 20,680 Hong Kong Dollar 15.5 Short-Term Investments — 1,990 — 1,990 Taiwan Dollar 9.0 Total Investments $129,029 $311,752 $— $440,781 Indian Rupee 8.8 OTHER FINANCIAL INSTRUMENTS South African Rand 5.8 Liabilities All other currencies less than 5% 17.0 Futures Contracts $ (28) $ — $— $ (28) Total Investments 100.4 (1) Classifications as defined in the Schedule of Investments. Liabilities less Other Assets (0.4) Net Assets 100.0%

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

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date. Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices). The Fund adjusted the price of certain foreign equity securities held in its portfolio on March 31, 2021 using adjustment factors designed to reflect more accurately the fair value of the securities. See Note 2 for a discussion of this procedure. The fair valuation of these securities resulted in their categorization as Level 2 investments. Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 27 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

ACTIVE M INTERNATIONAL EQUITY FUND

NUMBER VALUE NUMBER VALUE OF SHARES (000S) OF SHARES (000S) COMMON STOCKS – 95.8% (1) COMMON STOCKS – 95.8% (1) continued Argentina – 1.0% Canada – 5.3% continued MercadoLibre, Inc.* 4,486 $6,604 Canadian Western Bank 19,312 $492 YPF S.A. ADR* 62,635 257 Cogeco Communications, Inc. 4,753 446 6,861 Descartes Systems Group (The), Inc.* 5,266 321 50,200 306 Australia – 2.6% Dundee Precious Metals, Inc. 38,269 771 Ansell Ltd. 18,018 538 Endeavour Mining Corp. 20,721 527 Bank of Queensland Ltd. 55,029 362 Finning International, Inc. 48,614 315 Bapcor Ltd. 64,752 369 Fortuna Silver Mines, Inc.* Beach Energy Ltd. 583,023 758 Kinross Gold Corp. (New York Exchange) 127,096 848 Charter Hall Group 74,214 727 Lululemon Athletica, Inc.* 17,626 5,406 CSL Ltd. 48,681 9,810 Northland Power, Inc. 20,216 733 CSR Ltd. 80,507 355 Parex Resources, Inc.* 44,104 786 Elders Ltd. 54,177 513 Shopify, Inc., Class A* 5,609 6,206 JB Hi-Fi Ltd. 12,756 503 Stella-Jones, Inc. 10,471 425 Mineral Resources Ltd. 39,903 1,157 TFI International, Inc. 13,260 994 OZ Minerals Ltd. 53,910 934 Tourmaline Oil Corp. 21,345 406 Pendal Group Ltd. 66,327 329 Tricon Residential, Inc. 54,528 558 Seven Group Holdings Ltd. 26,574 457 West Fraser Timber Co. Ltd. 4,650 335 Shopping Centres Australasia Property Group 183,454 350 36,253 Silver Lake Resources Ltd.* 353,675 406 China–4.3% Technology One Ltd. 52,234 373 Alibaba Group Holding Ltd. ADR* 17,890 4,056 17,941 Baidu, Inc. ADR* 2,095 456 Austria–0.1% Beijing Capital International Airport Co. Ltd., Class H 910,000 710 Erste Group Bank A.G.* 29,461 1,000 Dongfeng Motor Group Co. Ltd., Belgium – 0.3% Class H 1,647,387 1,538 Ageas S.A./N.V. 29,326 1,772 Futu Holdings Ltd. ADR* 1,156 184 Brazil – 0.6% New Oriental Education & Technology Cia de Saneamento Basico do Estado Group, Inc. ADR* 204,499 2,863 de Sao Paulo* 75,089 547 Shenzhou International Group Holdings Magazine Luiza S.A. 946,300 3,376 Ltd. 214,200 4,452 3,923 Tencent Holdings Ltd. 130,414 10,281 Wuxi Biologics Cayman, Inc.* 381,809 4,816 Canada – 5.3% Air Canada* 139,100 2,894 29,356 Aphria, Inc.* 22,729 418 Denmark – 1.5% ARC Resources Ltd. 60,614 372 AP Moller - Maersk A/S, Class B 683 1,589 ATS Automation Tooling Systems, Inc.* 19,636 414 Drilling Co. of 1972 (The) A/S* 2,359 94 Ballard Power Systems, Inc.* 9,955 243 DSV Panalpina A/S 38,191 7,489 Barrick Gold Corp. 72,385 1,436 Netcompany Group A/S 3,269 311 Boardwalk Real Estate Investment Trust 12,382 358 Pandora A/S* 4,765 511 BRP, Inc. 7,358 638 Royal Unibrew A/S 4,270 447 Cameco Corp. (New York Exchange) 41,003 681 10,441 Canadian Pacific Railway Ltd. (New Finland – 0.6% York Exchange) 23,527 8,924 Kemira OYJ 19,631 302

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 28 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

NUMBER VALUE NUMBER VALUE OF SHARES (000S) OF SHARES (000S) COMMON STOCKS – 95.8% (1) continued COMMON STOCKS – 95.8% (1) continued Finland – 0.6% continued France – 10.4% continued Metso Outotec OYJ 56,136 $626 Valeo S.A. 21,645 $736 Nokia OYJ* 427,292 1,708 Vinci S.A. 15,581 1,597 TietoEVRY OYJ 13,927 431 70,943 21,456 782 Valmet OYJ Germany – 5.4% 15,723 165 Wartsila OYJ Abp adidas A.G.* 7,600 2,372 4,014 alstria office REIT-A.G. 31,342 507 France – 10.4% Aurubis A.G. 4,913 407 Airbus S.E.* 25,501 2,888 BASF S.E. 49,352 4,099 Alstom S.A.* 6,723 335 Bayer A.G. (Registered) 22,961 1,453 Arkema S.A. 2,732 331 Bechtle A.G. 3,183 597 Atos S.E.* 4,167 325 Brenntag S.E. 6,631 566 AXA S.A. 203,300 5,451 Carl Zeiss Meditec A.G. (Bearer) 2,909 438 BNP Paribas S.A.* 64,697 3,931 CECONOMY A.G.* 98,619 571 Carrefour S.A. 23,199 420 Covestro A.G.(2) 7,522 506 Cie de Saint-Gobain* 57,981 3,422 Daimler A.G. (Registered) 32,583 2,903 Danone S.A. 31,022 2,129 Deutsche Pfandbriefbank A.G.* 41,851 487 Dassault Aviation S.A.* 520 579 DWS Group GmbH & Co. KGaA 10,336 447 Dassault Systemes S.E. 5,807 1,242 Encavis A.G. 2,200 42 Eiffage S.A.* 8,266 828 Freenet A.G. 23,748 569 Elis S.A.* 23,669 387 Fresenius S.E. & Co. KGaA 42,951 1,913 Engie S.A.* 154,592 2,195 Gerresheimer A.G. 5,100 507 Faurecia S.E. (Euronext Paris HelloFresh S.E.* 5,416 404 Exchange)* 15,207 810 Infineon Technologies A.G. 33,895 1,437 Kering S.A. 1,499 1,035 METRO A.G. 31,881 337 Klepierre S.A. 30,514 711 ProSiebenSat.1 Media S.E.* 29,288 599 Korian S.A.* 10,484 364 Rheinmetall A.G. 6,182 626 (2) La Francaise des Jeux S.A.E.M 7,048 320 RWE A.G. 61,083 2,393 LVMH Moet Hennessy Louis Vuitton S.E. 15,920 10,609 SAP S.E. 46,061 5,641 Nexans S.A.* 7,280 645 Siemens A.G. (Registered) 22,870 3,756 Nexity S.A. 7,484 369 Siemens Healthineers A.G.(2) 42,100 2,279 Orange S.A. 141,397 1,741 TAG Immobilien A.G.* 24,803 708 Pernod Ricard S.A. 32,840 6,165 United Internet A.G. (Registered) 8,137 326 Publicis Groupe S.A. 12,570 767 36,890 Renault S.A.* 27,760 1,199 Hong Kong – 1.5% Rexel S.A.* 91,150 1,807 AIA Group Ltd. 635,711 7,734 RTL Group S.A.* 17,672 1,036 China High Precision Automation 9,589 454 Rubis S.C.A. Group Ltd.(3) * 982,000 — 42,152 4,166 Sanofi CK Asset Holdings Ltd. 242,292 1,473 22,594 770 SCOR S.E.* Hysan Development Co. Ltd. 150,000 587 2,069 365 SEB S.A. Towngas China Co. Ltd.* 492,000 246 69,037 1,804 Societe Generale S.A.* United Laboratories International SOITEC* 3,111 636 Holdings (The) Ltd. 404,000 298 Sopra Steria Group* 2,871 480 10,338 TOTAL S.E. 169,498 7,894

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 29 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

ACTIVE M INTERNATIONAL EQUITY FUND continued

NUMBER VALUE NUMBER VALUE OF SHARES (000S) OF SHARES (000S) COMMON STOCKS – 95.8% (1) continued COMMON STOCKS – 95.8% (1) continued India–1.3% Japan – 12.3% continued HDFC Bank Ltd. ADR* 113,331 $8,805 Capcom Co. Ltd. 20,800 $678 Indonesia – 0.1% Chiyoda Corp.* 57,951 250 Bank Mandiri Persero Tbk PT 2,005,636 851 Citizen Watch Co. Ltd. 137,903 473 9,600 423 Ireland–5.2% Daihen Corp. 89,360 1,546 Accenture PLC, Class A 39,880 11,017 Dai-ichi Life Holdings, Inc. 45,921 901 AerCap Holdings N.V.* 8,130 477 DeNA Co. Ltd. 14,700 586 AIB Group PLC* 6,042 16 Denka Co. Ltd. 21,800 425 AIB Group PLC (London Exchange)* 413,651 1,078 Eiken Chemical Co. Ltd. 9,833 661 Bank of Ireland Group PLC* 105,382 523 Eisai Co. Ltd. 13,500 3,213 Bank of Ireland Group PLC (London FANUC Corp. Exchange)* 271,817 1,348 Freee K.K.* 2,900 248 Dalata Hotel Group PLC* 75,266 373 Fuji Corp. 24,100 620 Experian PLC 232,818 8,020 Fuji Media Holdings, Inc. 30,958 380 ICON PLC* 36,049 7,079 Fuji Soft, Inc. 6,600 343 Medtronic PLC 24,700 2,918 Fujitsu Ltd. 4,539 659 Ryanair Holdings PLC ADR* 17,698 2,035 FULLCAST Holdings Co. Ltd. 16,000 289 UDG Healthcare PLC 60,263 652 Gree, Inc. 124,400 630 H.U. Group Holdings, Inc. 14,600 491 35,536 Hino Motors Ltd. 171,900 1,474 Isle of Man – 0.1% Honda Motor Co. Ltd. 120,336 3,622 Entain PLC* 18,544 388 Inpex Corp. 193,491 1,320 Israel – 0.1% Internet Initiative Japan, Inc. 25,400 599 Inmode Ltd.* 9,225 668 Invincible Investment Corp. 873 330 Italy – 3.5% Isuzu Motors Ltd. 173,917 1,877 ACEA S.p.A. 24,331 533 Izumi Co. Ltd. 8,500 334 Assicurazioni Generali S.p.A. 97,912 1,965 Japan Airlines Co. Ltd.* 72,450 1,625 Banca Mediolanum S.p.A.* 48,916 463 JGC Holdings Corp. 105,672 1,304 BPER Banca* 275,732 610 Kamigumi Co. Ltd. 34,370 654 Buzzi Unicem S.p.A. 20,687 540 Kanamoto Co. Ltd. 12,400 323 Enel S.p.A. 321,831 3,216 Kaneka Corp. 8,900 366 Eni S.p.A. 211,818 2,613 Kenedix Office Investment Corp. 59 420 Ferrari N.V. 28,413 5,949 Keyence Corp. 12,320 5,623 Interpump Group S.p.A. 7,330 369 Kintetsu World Express, Inc. 19,200 499 Reply S.p.A. 4,723 597 Komeri Co. Ltd. 11,600 323 Saipem S.p.A. 254,907 695 Kumagai Gumi Co. Ltd. 13,300 361 UniCredit S.p.A.* 591,124 6,277 Mitsubishi Estate Co. Ltd. 98,273 1,723 23,827 Mitsubishi Heavy Industries Ltd. 22,877 715 Japan – 12.3% Mitsubishi Motors Corp.* 137,720 394 Anritsu Corp. 19,900 437 Mitsubishi UFJ Financial Group, Inc. 522,622 2,789 ASKUL Corp. 11,600 444 Morinaga Milk Industry Co. Ltd. 7,900 416 BayCurrent Consulting, Inc. 4,000 918 Murata Manufacturing Co. Ltd. 39,500 3,185 Bell System24 Holdings, Inc. 16,600 284 NEC Networks & System Integration Benesse Holdings, Inc. 5,505 116 Corp. 29,500 522 Canon, Inc. 30,627 694 Nichirei Corp. 11,100 286

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 30 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

NUMBER VALUE NUMBER VALUE OF SHARES (000S) OF SHARES (000S) COMMON STOCKS – 95.8% (1) continued COMMON STOCKS – 95.8% (1) continued Japan – 12.3% continued Malaysia – 0.1% Nikkiso Co. Ltd. 27,600 $281 CIMB Group Holdings Bhd. 622,116 $652 Nikon Corp. 92,866 872 Mexico–0.4% Nippon Accommodations Fund, Inc. 79 464 America Movil S.A.B. de C.V., Class L Nippon Electric Glass Co. Ltd. 21,000 489 ADR 89,064 1,210 Nippon Television Holdings, Inc. 57,513 758 Grupo Financiero Banorte S.A.B. de Nissan Motor Co. Ltd.* 239,079 1,338 C.V., Series O* 140,718 793 Nomura Holdings, Inc. 214,802 1,135 Wal-Mart de Mexico S.A.B. de C.V. 327,700 1,035 North Pacific Bank Ltd. 127,200 369 3,038 Open House Co. Ltd. 16,100 689 Netherlands – 5.2% Penta-Ocean Construction Co. Ltd. 66,500 524 ABN AMRO Bank N.V. - C.V.A.* 125,209 1,519 Rengo Co. Ltd. 62,900 547 Adyen N.V.(2) * 2,093 4,692 Resona Holdings, Inc. 452,564 1,897 Akzo Nobel N.V. 23,255 2,599 Resorttrust, Inc. 21,100 353 ArcelorMittal S.A.* 28,589 829 Sankyu, Inc. 7,300 320 Argenx S.E.* 1,470 404 Sanwa Holdings Corp. 32,800 431 ASM International N.V. 4,860 1,422 Sawai Group Holdings Co. Ltd. 9,100 436 ASML Holding N.V. (Registered) 15,365 9,486 Shimamura Co. Ltd. 15,150 1,749 ASR Nederland N.V. 15,258 683 Shinko Electric Industries Co. Ltd. 32,500 1,020 Euronext N.V. 6,420 647 Ship Healthcare Holdings, Inc. 18,000 507 ING Groep N.V. 517,125 6,346 Sompo Holdings, Inc. 21,300 815 Intertrust N.V.* 16,930 281 Starts Corp., Inc. 14,100 371 PostNL N.V.* 151,559 737 Sumitomo Forestry Co. Ltd. 20,800 450 Royal Dutch Shell PLC, Class B 236,390 4,348 Sumitomo Heavy Industries Ltd. 27,910 780 SBM Offshore N.V. 22,534 413 Sumitomo Mitsui Financial Group, Inc. 124,195 4,516 Signify N.V.* 16,039 827 Sumitomo Mitsui Trust Holdings, Inc. 49,330 1,717 VEON Ltd. ADR* 308,654 546 Sushiro Global Holdings Ltd. 12,700 563 35,779 T&D Holdings, Inc. 182,255 2,366 Norway – 0.4% Taiyo Yuden Co. Ltd. 11,300 537 Norsk Hydro ASA 410,683 2,632 Takeda Pharmaceutical Co. Ltd. 171,966 6,214 Sparebanken Vest 30,057 275 Takeuchi Manufacturing Co. Ltd. 16,800 473 2,907 THK Co. Ltd. 35,099 1,214 Tokyo Seimitsu Co. Ltd. 7,100 325 Russia – 0.4% Tokyotokeiba Co. Ltd. 6,800 344 Gazprom PJSC ADR 200,193 1,195 Toppan Printing Co. Ltd. 33,490 566 LUKOIL PJSC ADR 5,309 429 Toyo Tire Corp. 34,700 616 Sberbank of Russia PJSC ADR 51,610 795 Valor Holdings Co. Ltd. 16,200 365 2,419 Zenkoku Hosho Co. Ltd. 11,600 534 Singapore – 0.1% Zeon Corp. 22,300 358 AEM Holdings Ltd. 118,400 366 84,096 Frasers Logistics & Commercial Trust 427,600 461 Jordan–0.1% 827 Hikma Pharmaceuticals PLC 11,535 362 South Africa – 0.4% Macau – 0.2% Gold Fields Ltd. ADR 80,992 768 Sands China Ltd.* 291,600 1,462 Impala Platinum Holdings Ltd. 17,465 324

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 31 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

ACTIVE M INTERNATIONAL EQUITY FUND continued

NUMBER VALUE NUMBER VALUE OF SHARES (000S) OF SHARES (000S) COMMON STOCKS – 95.8% (1) continued COMMON STOCKS – 95.8% (1) continued South Africa – 0.4% continued Sweden – 1.9% continued MTN Group 120,703 $709 G5 Entertainment AB 2,591 $147 Old Mutual Ltd. 900,501 771 Getinge AB, Class B 20,458 568 2,572 Kindred Group PLC SDR* 48,796 858 30,131 364 South Korea – 3.1% Peab AB, Class B* 27,844 528 AfreecaTV Co. Ltd. 5,611 391 Wihlborgs Fastigheter AB Coway Co. Ltd. 5,009 290 12,752 Douzone Bizon Co. Ltd. 5,899 515 Switzerland – 8.4% Hankook Tire & Technology Co. Ltd. 23,303 1,015 ABB Ltd. (Registered) 56,380 1,715 Hite Jinro Co. Ltd. 10,306 337 Adecco Group A.G. (Registered) 53,883 3,629 KB Financial Group, Inc. 50,970 2,526 Alcon, Inc.* 81,560 5,710 KT Corp. ADR 146,880 1,827 Bucher Industries A.G. (Registered) 1,238 631 Maeil Dairies Co. Ltd. 4,473 286 Cie Financiere Richemont S.A., Class A Neowiz* 19,718 410 (Registered) 22,774 2,187 Osstem Implant Co. Ltd. 10,091 760 Coca-Cola HBC A.G. - CDI* 10,163 323 Partron Co. Ltd. 36,930 351 Credit Suisse Group A.G. (Registered) 113,378 1,197 PHARMA RESEARCH PRODUCTS Co. Forbo Holding A.G. (Registered) 195 353 Ltd. 4,617 271 Julius Baer Group Ltd. 23,880 1,526 Samsung Electronics Co. Ltd. 71,743 5,182 LafargeHolcim Ltd. (Registered)* 49,716 2,922 Samsung Engineering Co. Ltd.* 27,267 339 Logitech International S.A. (Registered) 12,006 1,258 SFA Engineering Corp. 9,881 355 Lonza Group A.G. (Registered) 8,778 4,906 Shinhan Financial Group Co. Ltd. 57,811 1,917 Nestle S.A. (Registered) 54,518 6,076 SK Hynix, Inc. 26,766 3,152 Novartis A.G. (Registered) 51,235 4,377 Soulbrain Co. Ltd. 3,794 976 PSP Swiss Property A.G. (Registered) 5,152 628 20,900 Roche Holding A.G. (Genusschein) 9,652 3,120 21,947 6,269 Spain – 3.4% Sika A.G. (Registered) 4,880 549 Acciona S.A. 3,041 510 Sulzer A.G. (Registered) 1,128 554 Aena S.M.E. S.A.* 13,094 2,124 Swiss Life Holding A.G. (Registered) 1,034 459 Amadeus IT Group S.A.* 140,021 9,912 Tecan Group A.G. (Registered) 11,665 1,679 Applus Services S.A.* 37,407 387 Temenos A.G. (Registered) 228,808 3,543 Banco Bilbao Vizcaya Argentaria S.A. 372,339 1,939 UBS Group A.G. (Registered) 7,045 537 Bankinter S.A. 77,821 540 Vontobel Holding A.G. (Registered) 7,551 502 CaixaBank S.A. 1,529,464 4,735 Wizz Air Holdings PLC* 661 248 Cia de Distribucion Integral Logista Zur Rose Group A.G.* Holdings S.A. 21,242 421 Zurich Insurance Group A.G. 6,632 2,828 Industria de Diseno Textil S.A. 47,800 1,576 57,726 Laboratorios Farmaceuticos Rovi S.A. 7,233 390 Taiwan – 2.2% Merlin Properties Socimi S.A. 46,370 474 Catcher Technology Co. Ltd. 158,598 1,178 Viscofan S.A. 4,836 334 Hon Hai Precision Industry Co. Ltd. 358,340 1,572 23,342 Shin Kong Financial Holding Co. Ltd. 1,836,448 588 Sweden – 1.9% Taiwan Semiconductor Manufacturing 99,692 11,792 Atlas Copco AB, Class A 97,099 5,912 Co. Ltd. ADR Dometic Group AB* 34,385 499 15,130 Evolution Gaming Group AB 26,316 3,876

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 32 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

NUMBER VALUE NUMBER VALUE OF SHARES (000S) OF SHARES (000S) COMMON STOCKS – 95.8% (1) continued COMMON STOCKS – 95.8% (1) continued Thailand – 0.3% United Kingdom – 9.1% continued Kasikornbank PCL NVDR 409,417 $1,905 RELX PLC 28,290 $711 Turkey – 0.2% Rolls-Royce Holdings PLC* 3,391,742 4,927 Turk Telekomunikasyon A.S. 589,311 486 RoyalMailPLC* 62,816 437 Turkcell Iletisim Hizmetleri A.S. 313,977 569 Safestore Holdings PLC 54,236 595 Sage Group (The) PLC 263,267 2,225 1,055 Serco Group PLC* 215,695 409 United Kingdom – 9.1% Smith & Nephew PLC 68,332 1,290 888 Holdings PLC 19,844 108 Spirent Communications PLC 98,830 325 AngloAmericanPLC 58,301 2,284 Standard Chartered PLC 290,432 1,998 Atlantica Sustainable Infrastructure PLC 10,587 388 Stock Spirits Group PLC 99,600 385 B&M European Value Retail S.A. 98,488 717 Synthomer PLC 69,945 448 Babcock International Group PLC* 202,445 638 Tate & Lyle PLC 46,653 493 BAE Systems PLC 276,682 1,926 Travis Perkins PLC* 25,587 544 Barclays PLC 803,830 2,061 Ultra Electronics Holdings PLC 12,868 360 BP PLC 1,441,810 5,850 Unilever PLC (London Exchange) 64,487 3,599 British American Tobacco PLC 66,178 2,531 UNITE Group (The) PLC* 29,266 431 British Land (The) Co. PLC 117,831 819 Vistry Group PLC 34,312 517 BT Group PLC* 686,880 1,466 WPP PLC 194,198 2,465 Bunzl PLC 50,840 1,628 Cairn Energy PLC 177,200 416 62,144 Centrica PLC* 946,508 707 United States – 3.7% Close Brothers Group PLC 19,920 426 Aon PLC, Class A 31,658 7,285 Compass Group PLC* 32,857 662 Mettler-Toledo International, Inc.* 4,459 5,153 Computacenter PLC 22,238 727 Nexteer Automotive Group Ltd. 250,000 308 Cranswick PLC 7,141 358 Ovintiv, Inc. 38,010 907 Electrocomponents PLC 31,413 430 Reliance Worldwide Corp. Ltd. 112,103 383 Future PLC 23,981 633 ResMed, Inc. 33,535 6,507 Gamesys Group PLC 18,580 495 STERIS PLC 24,711 4,707 Genus PLC 5,203 349 25,250 IG Group Holdings PLC 36,090 448 Total Common Stocks IMI PLC 33,687 620 (Cost $488,348) 654,125 Intermediate Capital Group PLC 17,745 451 International Consolidated Airlines PREFERRED STOCKS – 0.2% (1) 624,995 1,710 Group S.A.* Germany – 0.2% J Sainsbury PLC 700,465 2,342 Volkswagen A.G., 2.02%(4) 5,521 1,543 421,910 1,852 Kingfisher PLC* Total Preferred Stocks 78,914 751 Land Securities Group PLC (Cost $797) 1,543 LondonMetric Property PLC 152,326 448 Marks & Spencer Group PLC* 357,604 744 NUMBER VALUE OF WARRANTS (000S) Micro Focus International PLC 59,448 453 WARRANTS – 0.0% OSB Group PLC* 83,108 488 Cie Financiere Richemont S.A., Exp. Pets at Home Group PLC 68,652 391 11/22/23, Strike $67.00* 58,234 $22 Prudential PLC 108,446 2,299 Total Warrants Redrow PLC 71,053 615 (Cost $—) 22 RELX PLC 30,063 754

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 33 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

ACTIVE M INTERNATIONAL EQUITY FUND continued

NUMBER VALUE ETF – Exchange-Traded Fund OF SHARES (000S) INVESTMENT COMPANIES – 2.7% FTSE – Financial Times Stock Exchange Northern Institutional Funds - U.S. Government Portfolio (Shares), MSCI – Morgan Stanley Capital International 0.00%(5) (6) 18,114,751 $18,115 N.V. – Naamloze Vennootschap (Dutch: Limited Liability Company) Vanguard FTSE Developed Markets ETF 10,645 523 Total Investment Companies NVDR – Non-Voting Depositary Receipt (Cost $18,489) 18,638 PCL – Public Company Limited PRINCIPAL AMOUNT VALUE PJSC – Public Joint-Stock Company (000S) (000S) SHORT-TERM INVESTMENTS – 0.7% PLC – Public Limited Company U.S. Treasury Bill, REIT – Real Estate Investment Trust 0.06%, 7/15/21(7) (8) $4,460 $4,460 Total Short-Term Investments S.A. – Société Anonyme (French: Public Limited Company) (Cost $4,459) 4,460 S.A.B. de C.V. – Sociedad Anónima Bursátil de Capital Variable (Mexico: Public Company) Total Investments – 99.4% (Cost $512,093) 678,788 S.E. – Societas Europaea (German: Public Company) Other Assets less Liabilities – 0.6% 4,340 Percentages shown are based on Net Assets. Net Assets – 100.0% $683,128 At March 31, 2021, the Fund had open futures contracts as follows: (1) Adjustment factors obtained from an independent evaluation service were used to determine the value of certain foreign securities. VALUE AND (2) Securities exempt from registration under Rule 144A of the Securities Act of UNREALIZED 1933. These securities may be resold in transactions exempt from registration, NOTIONAL APPRECIATION normally to qualified institutional buyers. The value of these securities is NUMBER OF AMOUNT CONTRACT CONTRACT (DEPRECIATION) TYPE CONTRACTS (000S) POSITION EXP. (000S)(1) determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Board of MSCI EAFE Trustees of Northern Funds. Index (3) Level 3 asset that is worthless, bankrupt or has been delisted. (United States (4) Current yield is disclosed. Dividends are calculated based on a percentage Dollar) 92 $10,083 Long 6/21 $(12) of the issuer’s net income. (5) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the (1) Includes cumulative appreciation/depreciation on futures contracts. Only the investment adviser to the Fund and the investment adviser to Northern current day’s variation margin is reported within the Statements of Assets and Institutional Funds. Liabilities. (6) 7-day current yield as of March 31, 2021 is disclosed. (7) Discount rate at the time of purchase. (8) A portion of this security has been pledged as collateral to cover margin requirements for open futures contracts. * Non-Income Producing Security

EXPLANATION OF ABBREVIATIONS AND ACRONYMS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

A.G. – Aktiengesellschaft (German: Stock Corporation)

AB – Aktiebolag (Sweden: Corporation)

ADR – American Depositary Receipt

ASA – Aksjeselskap (Norway: Stock Company)

CDI – CREST Depository Interest

EAFE – Europe, Australasia and the Far East

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 34 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

At March 31, 2021, the industry sectors for the Fund were: The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuations of the %OFNET INDUSTRY SECTOR ASSETS Fund’s investments by the above fair value hierarchy as of March 31, 2021: Communication Services 4.5% LEVEL 1 LEVEL 2 LEVEL 3 TOTAL Consumer Discretionary 13.4 INVESTMENTS (000S) (000S) (000S) (000S) Consumer Staples 4.3 Common Stocks: Energy 4.3 Argentina $ 6,861 $ — $— $ 6,861 Brazil 3,923 — — 3,923 Financials 17.2 Canada 36,253 — — 36,253 Health Care 12.6 China 7,559 21,797 — 29,356 15.5 Industrials India 8,805 — — 8,805 Information Technology 15.0 Ireland 23,526 12,010 — 35,536 Materials 5.2 Israel 668 — — 668 Real Estate 2.3 Mexico 3,038 — — 3,038 Netherlands 10,032 25,747 — 35,779 Short-Term Investments 3.3 South Africa 768 1,804 — 2,572 Utilities 1.8 South Korea 1,827 19,073 — 20,900 99.4 Total Investments Taiwan 11,792 3,338 — 15,130 Other Assets less Liabilities 0.6 United Kingdom 388 61,756 — 62,144 Net Assets 100.0% United States 24,559 691 — 25,250 All Other Countries(1) — 367,910 — 367,910 At March 31, 2021, the Fund’s investments were denominated in the following Total Common Stocks 139,999 514,126 — 654,125 currencies: Preferred Stocks — 1,543 — 1,543 Warrants 22 — — 22 %OFNET CONCENTRATION BY CURRENCY ASSETS Investment Companies 18,638 — — 18,638 Short-Term Investments — 4,460 — 4,460 Euro 27.5% Total Investments $158,659 $520,129 $— $678,788 United States Dollar 21.2 OTHER FINANCIAL Japanese Yen 12.3 INSTRUMENTS British Pound 11.2 Liabilities Swiss Franc 8.3 Futures Contracts $ (12) $ — $— $ (12) (1) Classifications as defined in the Schedule of Investments. Hong Kong Dollar 5.0 All other currencies less than 5% 13.9 Total Investments 99.4 Other Assets less Liabilities 0.6 Net Assets 100.0%

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

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date. Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices). The Fund adjusted the price of certain foreign equity securities held in its portfolio on March 31, 2021 using adjustment factors designed to reflect more accurately the fair value of the securities. See Note 2 for a discussion of this procedure. The fair valuation of these securities resulted in their categorization as Level 2 investments. Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 35 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

MULTI-MANAGER GLOBAL LISTED INFRASTRUCTURE FUND

NUMBER VALUE NUMBER VALUE OF SHARES (000S) OF SHARES (000S) COMMON STOCKS – 93.7% (1) COMMON STOCKS – 93.7% (1) continued Australia – 7.4% Italy – 10.2% continued Atlas Arteria Ltd. 2,012,746 $9,112 Infrastrutture Wireless Italiane S.p.A.(2) 1,048,828 $11,704 Aurizon Holdings Ltd. 3,064,766 9,107 Italgas S.p.A. 1,553,782 10,105 Spark Infrastructure Group 8,577,340 14,157 Snam S.p.A. 4,979,307 27,647 Transurban Group 5,354,141 54,302 Terna Rete Elettrica Nazionale S.p.A. 3,043,162 23,017 86,678 118,850 Brazil – 0.8% Japan – 0.9% CCR S.A. 2,736,400 6,262 East Japan Railway Co. 56,500 4,010 CPFL Energia S.A. 638,700 3,469 Tokyo Gas Co. Ltd. 286,300 6,363 9,731 10,373 Canada – 3.7% Mexico – 1.1% Atco Ltd., Class I 98,496 3,270 ALEATICA S.A.B. de C.V. 3,216,989 3,541 Emera, Inc. 278,708 12,404 Grupo Aeroportuario del Sureste S.A.B. Enbridge, Inc. 229,908 8,375 de C.V., Series B* 241,028 4,281 Hydro One Ltd. 302,020 7,034 Promotora y Operadora de Infraestructura S.A.B. de C.V. 679,606 5,187 Pembina Pipeline Corp. 417,200 12,051 13,009 43,134 Netherlands – 1.3% Chile – 0.2% Koninklijke Vopak N.V. 294,246 14,665 Aguas Andinas S.A., Class A 6,286,548 1,945 Portugal – 0.3% China – 0.8% REN - Redes Energeticas Nacionais Jiangsu Expressway Co. Ltd., Class H 7,654,000 9,541 SGPS S.A. 1,283,008 3,583 France – 7.8% Spain – 4.8% Eiffage S.A.* 78,612 7,872 Aena S.M.E. S.A.* 88,361 14,335 Eutelsat Communications S.A. 456,700 5,559 EDP Renovaveis S.A. 144,719 3,092 Getlink S.E.* 1,108,879 17,013 Ferrovial S.A. 1,468,249 38,283 Rubis S.C.A. 194,069 9,196 SES S.A. 660,000 5,242 55,710 Vinci S.A. 445,638 45,669 Switzerland – 1.6% Flughafen Zurich A.G. (Registered)* 115,698 19,014 90,551 United Kingdom – 11.1% Germany–0.7% National Grid PLC 3,980,364 47,471 Fraport A.G. Frankfurt Airport Services Worldwide* 138,844 8,442 Pennon Group PLC 979,697 13,170 Severn Trent PLC 1,057,664 33,629 Hong Kong – 2.8% SSE PLC 469,937 9,429 China Gas Holdings Ltd. 1,178,000 4,826 United Utilities Group PLC 2,062,662 26,331 CK Infrastructure Holdings Ltd. 755,500 4,492 CLP Holdings Ltd. 681,500 6,621 130,030 Guangdong Investment Ltd. 4,770,000 7,771 United States – 38.2% Power Assets Holdings Ltd. 1,497,320 8,845 Alliant Energy Corp. 231,791 12,554 32,555 Ameren Corp. 302,010 24,572 American Electric Power Co., Inc. 187,940 15,919 Italy – 10.2% American Tower Corp. 123,070 29,421 ASTM S.p.A.* 211,616 6,415 Atmos Energy Corp. 99,954 9,880 Atlantia S.p.A.* 1,514,345 28,412 Avista Corp. 61,873 2,954 Hera S.p.A. 3,005,232 11,550

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 36 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

NUMBER VALUE NUMBER VALUE OF SHARES (000S) OF SHARES (000S) COMMON STOCKS – 93.7% (1) continued INVESTMENT COMPANIES – 3.6% United States – 38.2% continued Northern Institutional Funds - CenterPoint Energy, Inc. 534,222 $12,100 U.S. Government Portfolio (Shares), 0.00%(3) (4) 42,041,298 $42,041 Cheniere Energy, Inc.* 169,494 12,205 Total Investment Companies Consolidated Edison, Inc. 140,600 10,517 (Cost $42,041) 42,041 Crown Castle International Corp. 82,861 14,263 CSX Corp. 288,190 27,787 PRINCIPAL AMOUNT VALUE Dominion Energy, Inc. 436,687 33,171 (000S) (000S) Duke Energy Corp. 213,860 20,644 SHORT-TERM INVESTMENTS – 0.3% Edison International 197,754 11,588 U.S. Treasury Bill, Entergy Corp. 105,750 10,519 0.06%, 7/15/21(5) (6) $4,180 $4,180 Essential Utilities, Inc. 133,008 5,952 Total Short-Term Investments Evergy, Inc. 155,030 9,229 (Cost $4,180) 4,180 Eversource Energy 148,517 12,860 Exelon Corp. 73,530 3,216 Total Investments – 99.2% FirstEnergy Corp. 254,545 8,830 (Cost $1,042,370) 1,158,507 Kinder Morgan, Inc. 409,022 6,810 Other Assets less Liabilities – 0.8% 9,087 NextEra Energy, Inc. 249,478 18,863 Net Assets – 100.0% $1,167,594 NiSource, Inc. 1,015,722 24,489 (1) Norfolk Southern Corp. 83,698 22,475 Adjustment factors obtained from an independent evaluation service were used to determine the value of certain foreign securities. Pinnacle West Capital Corp. 94,483 7,686 (2) Securities exempt from registration under Rule 144A of the Securities Act of Portland General Electric Co. 134,241 6,372 1933. These securities may be resold in transactions exempt from registration, Republic Services, Inc. 49,129 4,881 normally to qualified institutional buyers. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not SBA Communications Corp. 64,938 18,024 available, in accordance with procedures established by the Board of Sempra Energy 131,952 17,494 Trustees of Northern Funds. (3) SJW Group 53,780 3,388 Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Southwest Gas Holdings, Inc. 81 Institutional Funds. UGI Corp. 164,406 6,742 (4) 7-day current yield as of March 31, 2021 is disclosed. Williams (The) Cos., Inc. 367,874 8,715 (5) Discount rate at the time of purchase. (6) Xcel Energy, Inc. 183,907 12,232 Security pledged as collateral to cover margin requirements for open futures contracts. 446,353 * Non-Income Producing Security Total Common Stocks EXPLANATION OF ABBREVIATIONS AND ACRONYMS USED THROUGHOUT (Cost $980,737) 1,094,164 THE SCHEDULE OF INVESTMENTS:

MASTER LIMITED PARTNERSHIPS – 1.6% A.G. – Aktiengesellschaft (German: Stock Corporation)

United States – 1.6% EAFE – Europe, Australasia and the Far East Enterprise Products Partners L.P. 392,018 8,632 Magellan Midstream Partners L.P. 218,860 9,490 L.P. – Limited Partnership

18,122 MSCI – Morgan Stanley Capital International Total Master Limited Partnerships N.V. – Naamloze Vennootschap (Dutch: Limited Liability Company) (Cost $15,412) 18,122 PLC – Public Limited Company

S&P – Standard & Poor’s

S.A. – Société Anonyme (French: Public Limited Company)

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 37 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

MULTI-MANAGER GLOBAL LISTED INFRASTRUCTURE FUND continued

S.A.B. de C.V. – Sociedad Anónima Bursátil de Capital Variable (Mexico: Public At March 31, 2021, the Fund’s investments were denominated in the following Company) currencies:

S.E. – Societas Europaea (German: Public Company) %OFNET CONCENTRATION BY CURRENCY ASSETS Percentages shown are based on Net Assets. United States Dollar 43.8% At March 31, 2021, the Fund had open futures contracts as follows: Euro 25.0 British Pound 11.1 VALUE AND UNREALIZED Australian Dollar 7.4 NOTIONAL APPRECIATION NUMBER OF AMOUNT CONTRACT CONTRACT (DEPRECIATION) All other currencies less than 5% 11.9 (1) TYPE CONTRACTS (000S) POSITION EXP. (000S) Total Investments 99.2 E-Mini S&P Other Assets less Liabilities 0.8 500 (United States Net Assets 100.0% Dollar) 60 $11,902 Long 6/21 $106 Various inputs are used in determining the value of the Fund’s investments. These MSCI EAFE inputs are summarized in three levels listed below: Index (United States Level 1 - Unadjusted quoted market prices in active markets for identical securities Dollar) 85 9,316 Long 6/21 (28) on the measurement date. Total $78 Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest (1) Includes cumulative appreciation/depreciation on futures contracts. Only the rates and yield curves, maturities, ratings and/or securities indices). The Fund current day’s variation margin is reported within the Statements of Assets and adjusted the price of certain foreign equity securities held in its portfolio on Liabilities. March 31, 2021 using adjustment factors designed to reflect more accurately the fair value of the securities. See Note 2 for a discussion of this procedure. The fair At March 31, 2021, the industry sectors for the Fund were: valuation of these securities resulted in their categorization as Level 2 investments. Level 3 - Significant unobservable inputs (e.g., information about assumptions, %OFNET including risk, market participants would use in pricing a security). INDUSTRY SECTOR ASSETS The inputs or methodologies used for valuing securities are not necessarily an Communication Services 1.9% indication of the risk associated with investing in those securities and other Energy 6.9 financial instruments, if any. The following table summarizes the valuations of the Industrials 29.7 Fund’s investments by the above fair value hierarchy as of March 31, 2021: Real Estate 5.3 LEVEL 1 LEVEL 2 LEVEL 3 TOTAL Short-Term Investments 3.9 INVESTMENTS (000S) (000S) (000S) (000S) Utilities 51.5 Common Stocks: Total Investments 99.2 Brazil $ 9,731 $ — $— $ 9,731 Canada 43,134 — — 43,134 Other Assets less Liabilities 0.8 Chile 1,945 — — 1,945 Net Assets 100.0% Mexico 13,009 — — 13,009 United States 446,353 — — 446,353 All Other Countries(1) — 579,992 — 579,992 Total Common Stocks 514,172 579,992 — 1,094,164 Master Limited Partnerships(1) 18,122 — — 18,122 Investment Companies 42,041 — — 42,041 Short-Term Investments — 4,180 — 4,180 Total Investments $574,335 $584,172 $— $1,158,507

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 38 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

LEVEL 1 LEVEL 2 LEVEL 3 TOTAL INVESTMENTS (000S) (000S) (000S) (000S) OTHER FINANCIAL INSTRUMENTS Assets Futures Contracts $ 106 $ — $— $ 106 Liabilities Futures Contracts (28) — — (28) Total Other Financial Instruments $78$— $—$ 78 (1) Classifications as defined in the Schedule of Investments.

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 39 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

MULTI-MANAGER GLOBAL REAL ESTATE FUND

NUMBER VALUE NUMBER VALUE OF SHARES (000S) OF SHARES (000S) COMMON STOCKS – 97.1% (1) COMMON STOCKS – 97.1% (1) continued Australia – 3.5% India–0.6% BGP Holdings PLC(2) * 3,277,404 $— Embassy Office Parks REIT 225,400 $1,005 Goodman Group 295,402 4,070 Japan – 6.6% National Storage REIT 1,043,494 1,590 Advance Residence Investment Corp. 576 1,807 NEXTDC Ltd.* 82,723 658 GLP J-Reit 383 630 6,318 Industrial & Infrastructure Fund 482 828 Belgium – 2.4% Investment Corp. 3,484 550 Shurgard Self Storage S.A. 29,369 1,338 Invesco Office J-Reit, Inc. 799 451 VGP N.V. 5,450 872 Japan Hotel REIT Investment Corp. 494 1,391 Warehouses De Pauw - C.V.A. 63,523 2,099 Japan Logistics Fund, Inc. Japan Metropolitan Fund Invest 764 781 4,309 Katitas Co. Ltd. 66,000 1,846 Brazil – 0.2% LaSalle Logiport REIT 303 459 Multiplan Empreendimentos Mitsui Fudosan Co. Ltd. 103,400 2,360 Imobiliarios S.A.* 73,721 321 Nomura Real Estate Master Fund, Inc. 593 892 Canada – 2.1% 11,995 Allied Properties Real Estate Investment Trust 24,119 780 Mexico – 1.1% Boardwalk Real Estate Investment Trust 42,156 1,218 Corp. Inmobiliaria Vesta S.A.B. de C.V. 432,757 906 Granite Real Estate Investment Trust 30,986 1,884 Fibra Uno Administracion S.A. de C.V. 906,093 1,061 3,882 1,967 China – 0.6% Netherlands – 0.3% China Resources Mixc Lifestyle Services CTP B.V.* 35,185 623 Ltd.* 56,000 336 Singapore – 3.4% GDS Holdings Ltd., Class A* 72,448 736 Ascendas India Trust 928,300 1,026 1,072 CapitaLand Ltd. 213,100 597 France – 0.4% Mapletree Commercial Trust 819,500 1,295 Gecina S.A. 5,800 799 Mapletree Industrial Trust 319,200 651 1,743,911 2,508 Germany–5.1% Mapletree Logistics Trust Aroundtown S.A. 115,764 824 6,077 Deutsche Wohnen S.E. 106,488 4,967 Spain – 1.6% Instone Real Estate Group A.G.* 35,200 968 Cellnex Telecom S.A.* 42,069 2,422 LEG Immobilien S.E. 18,952 2,493 Merlin Properties Socimi S.A. 44,000 450 9,252 2,872 Hong Kong – 6.7% Sweden – 0.7% China Resources Land Ltd. 44,000 213 Fastighets AB Balder, Class B* 24,900 1,233 ESR Cayman Ltd.* 553,600 1,820 United Kingdom – 6.7% Link REIT 171,700 1,566 Big Yellow Group PLC 106,294 1,632 New World Development Co. Ltd. 178,000 922 Grainger PLC 492,346 1,811 Shimao Group Holdings Ltd. 321,500 1,012 Helical PLC 110,119 628 Sino Land Co. Ltd. 1,103,683 1,539 HeliosTowersPLC* 859,051 2,002 Sun Hung Kai Properties Ltd. 125,500 1,904 Safestore Holdings PLC 46,750 513 Swire Properties Ltd. 996,000 3,083 Segro PLC 106,000 1,370 12,059 Shaftesbury PLC* 263,082 2,327

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 40 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

NUMBER VALUE NUMBER VALUE OF SHARES (000S) OF SHARES (000S) COMMON STOCKS – 97.1% (1) continued COMMON STOCKS – 97.1% (1) continued United Kingdom – 6.7% continued United States – 55.1% continued UNITE Group (The) PLC* 107,217 $1,577 VEREIT, Inc. 58,511 $2,260 Workspace Group PLC 30,000 331 VICI Properties, Inc. 199,028 5,621 12,191 Washington Real Estate Investment Trust 48,965 1,082 48,327 3,462 United States – 55.1% Welltower, Inc. Alexandria Real Estate Equities, Inc. 28,176 4,629 99,897 American Homes 4 Rent, Class A 87,705 2,924 Total Common Stocks American Tower Corp. 11,574 2,767 (Cost $149,392) 175,872 Americold Realty Trust 43,990 1,692 AvalonBay Communities, Inc. 16,609 3,065 INVESTMENT COMPANIES – 2.1% Boston Properties, Inc. 12,856 1,302 Northern Institutional Funds - U.S. Government Portfolio (Shares), Brixmor Property Group, Inc. 91,786 1,857 0.00%(3) (4) 3,902,911 3,903 CoreSite Realty Corp. 12,870 1,542 Total Investment Companies Corporate Office Properties Trust 1,511 40 (Cost $3,903) 3,903 Douglas Emmett, Inc. 56,513 1,775 Duke Realty Corp. 54,191 2,272 Total Investments – 99.2% Empire State Realty Trust, Inc., Class A 114,760 1,277 (Cost $153,295) 179,775 Encompass Health Corp. 10,076 825 Other Assets less Liabilities – 0.8% 1,417 EPR Properties 11,184 521 Net Assets – 100.0% $181,192 Equinix, Inc. 5,481 3,725 Equity LifeStyle Properties, Inc. 53,692 3,417 (1) Adjustment factors obtained from an independent evaluation service were Essex Property Trust, Inc. 7,989 2,172 used to determine the value of certain foreign securities. (2) Extra Space Storage, Inc. 22,825 3,025 Level 3 asset that is worthless, bankrupt or has been delisted. (3) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the Host Hotels & Resorts, Inc.* 100,731 1,697 investment adviser to the Fund and the investment adviser to Northern Invitation Homes, Inc. 62,826 2,010 Institutional Funds. (4) Medical Properties Trust, Inc. 76,000 1,617 7-day current yield as of March 31, 2021 is disclosed. * Non-Income Producing Security MGM Growth Properties LLC, Class A 49,896 1,628 Mid-America Apartment Communities, EXPLANATION OF ABBREVIATIONS AND ACRONYMS USED THROUGHOUT Inc. 15,395 2,222 THE SCHEDULE OF INVESTMENTS: National Health Investors, Inc. 17,156 1,240 A.G. – Aktiengesellschaft (German: Stock Corporation) National Retail Properties, Inc. 24,963 1,100 Omega Healthcare Investors, Inc. 42,401 1,553 AB – Aktiebolag (Sweden: Corporation) Prologis, Inc. 107,107 11,353 B.V. – Besloten Vennootschap (Dutch: Private Limited Liability Company) QTS Realty Trust, Inc., Class A 21,808 1,353 Rayonier, Inc. 51,868 1,673 LLC – Limited Liability Company Rexford Industrial Realty, Inc. 30,962 1,560 N.V. – Naamloze Vennootschap (Dutch: Limited Liability Company) Sabra Health Care REIT, Inc. 92,433 1,605 SBA Communications Corp. 4,059 1,127 PLC – Public Limited Company Simon Property Group, Inc. 20,379 2,319 REIT – Real Estate Investment Trust Spirit Realty Capital, Inc. 38,524 1,637 STAG Industrial, Inc. 56,780 1,908 S.A. – Société Anonyme (French: Public Limited Company) STORE Capital Corp. 73,784 2,472 S.A.B. de C.V. – Sociedad Anónima Bursátil de Capital Variable (Mexico: Public Sun Communities, Inc. 30,315 4,548 Company) UDR, Inc. 52,549 2,305 Urban Edge Properties 104,019 1,718

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 41 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

MULTI-MANAGER GLOBAL REAL ESTATE FUND continued MARCH 31, 2021

S.E. – Societas Europaea (German: Public Company) March 31, 2021 using adjustment factors designed to reflect more accurately the fair value of the securities. See Note 2 for a discussion of this procedure. The fair Percentages shown are based on Net Assets. valuation of these securities resulted in their categorization as Level 2 investments. Level 3 - Significant unobservable inputs (e.g., information about assumptions, At March 31, 2021, the industry sectors for the Fund were: including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an %OFNET indication of the risk associated with investing in those securities and other INDUSTRY SECTOR ASSETS financial instruments, if any. The following table summarizes the valuations of the Diversified Real Estate Activities 4.2% Fund’s investments by the above fair value hierarchy as of March 31, 2021: Diversified REITs 5.7 Health Care Facilities 0.5 LEVEL 1 LEVEL 2 LEVEL 3 TOTAL INVESTMENTS (000S) (000S) (000S) (000S) Health Care REITs 5.3 Common Stocks: Hotel & Resort REITs 2.0 Brazil $ 321 $ — $— $ 321 Industrial REITs 19.2 Canada 3,882 — — 3,882 Integrated Telecommunication Services 2.4 Mexico 1,967 — — 1,967 Internet Services & Infrastructure 0.8 Netherlands 623 — — 623 United States 99,897 — — 99,897 Office REITs 5.8 All Other Countries(1) — 69,182 — 69,182 Real Estate Development 3.0 Total Common Stocks 106,690 69,182 — 175,872 Real Estate Operating Companies 11.3 Investment Companies 3,903 — — 3,903 Residential REITs 15.1 Total Investments $110,593 $69,182 $— $179,775 Retail REITs 8.0 (1) Classifications as defined in the Schedule of Investments. Short-Term Investments 2.1 Specialized REITs 13.8 Total Investments 99.2 Other Assets less Liabilities 0.8 Net Assets 100.0%

At March 31, 2021, the Fund’s investments were denominated in the following currencies:

%OFNET CONCENTRATION BY CURRENCY ASSETS United States Dollar 57.3% Euro 9.9 Hong Kong Dollar 7.2 British Pound 6.7 Japanese Yen 6.6 All other currencies less than 5% 11.5 Total Investments 99.2 Other Assets less Liabilities 0.8 Net Assets 100.0%

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

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date. Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices). The Fund adjusted the price of certain foreign equity securities held in its portfolio on

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 42 NORTHERN FUNDS ANNUAL REPORT SCHEDULE OF INVESTMENTS

NORTHERN ENGAGE360TM FUND MARCH 31, 2021

NUMBER VALUE NUMBER VALUE OF SHARES (000S) OF SHARES (000S) COMMON STOCKS – 94.6% (1) COMMON STOCKS – 94.6% (1) continued Australia–0.7% China – 3.8% continued Aristocrat Leisure Ltd. 18,875 $494 China Construction Bank Corp., BHP Group Ltd. 18,815 651 Class H 1,079,000 $907 CSL Ltd. 2,225 448 China Shenhua Energy Co. Ltd., 136,500 282 Goodman Group 24,505 338 Class H 171,000 225 Rio Tinto Ltd. 11,663 986 CSC Financial Co. Ltd., Class H Hengan International Group Co. Ltd. 31,500 207 2,917 HUYA, Inc. ADR* 8,938 174 Belgium – 0.2% JD.com, Inc. ADR* 1,650 139 KBC Group N.V.* 4,260 309 KE Holdings, Inc. ADR* 6,742 384 Telenet Group Holding N.V. 10,414 423 Meituan, Class B* 4,300 166 732 NetEase, Inc. ADR 5,157 532 Brazil – 0.8% New China Life Insurance Co. Ltd., BB Seguridade Participacoes S.A. 252,681 1,088 Class H 125,000 485 Qualicorp Consultoria e Corretora de Postal Savings Bank of China Co. Ltd., Seguros S.A. 25,100 136 Class H 235,000 176 Telefonica Brasil S.A. 104,800 827 Sinotruk Hong Kong Ltd. 96,000 288 TIM S.A.* 218,518 493 Tencent Holdings Ltd. 12,800 1,009 Vale S.A. 23,000 398 Tencent Holdings Ltd. ADR 973 78 WEG S.A. 29,000 386 Tencent Music Entertainment Group ADR* 16,440 337 3,328 Tingyi Cayman Islands Holding Corp. 82,000 151 Canada – 2.2% Tsingtao Brewery Co. Ltd., Class H 26,000 231 Alimentation Couche-Tard, Inc., Class B 8,600 277 Vipshop Holdings Ltd. ADR* 11,661 348 Canadian Imperial Bank of Commerce 2,700 264 Weibo Corp. ADR* 2,374 120 CI Financial Corp. 16,100 233 Weichai Power Co. Ltd., Class H 250,000 622 Constellation Software, Inc. 943 1,317 15,321 Element Fleet Management Corp. 17,862 195 IGM Financial, Inc. 35,327 1,077 Denmark – 0.3% Magna International, Inc. 13,700 1,207 AP Moller - Maersk A/S, Class B 96 223 Manulife Financial Corp. 35,800 770 Carlsberg A.S., Class B 1,538 236 National Bank of Canada 4,100 278 Novo Nordisk A/S, Class B 7,416 501 Open Text Corp. 4,700 224 Pandora A/S* 4,000 429 Quebecor, Inc., Class B 15,600 419 1,389 Shopify, Inc., Class A* 663 734 Finland – 0.6% Sun Life Financial, Inc. 16,600 839 Neste OYJ 14,469 767 Toronto-Dominion Bank (The) 12,100 789 Nokia OYJ* 384,893 1,539 8,623 2,306 Chile – 0.2% France – 3.3% Banco Santander Chile ADR 37,713 936 AXA S.A. 16,000 429 China–3.8% BNP Paribas S.A.* 16,075 977 Alibaba Group Holding Ltd. ADR* 5,905 1,339 Cie Generale des Etablissements A-Living Smart City Services Co. Ltd. 61,000 272 Michelin S.C.A. 27,153 4,066 Anhui Conch Cement Co. Ltd., Class H 33,000 215 Cie Generale des Etablissements Michelin S.C.A. ADR 81,900 2,454 Autohome, Inc. ADR 2,290 214 Baidu, Inc. ADR* 29,510 6,420

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 43 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

TM NORTHERN ENGAGE360 FUND continued

NUMBER VALUE NUMBER VALUE OF SHARES (000S) OF SHARES (000S) COMMON STOCKS – 94.6% (1) continued COMMON STOCKS – 94.6% (1) continued France – 3.3% continued India – 0.5% continued Faurecia S.E. (Euronext Paris Infosys Ltd. ADR 53,971 $1,011 Exchange)* 739 $39 Wipro Ltd. ADR 36,620 232 L’Oreal S.A. 1,500 575 2,004 LVMH Moet Hennessy Louis Vuitton S.E. 740 493 Indonesia – 0.1% RTL Group S.A.* 4,833 283 Bank Mandiri Persero Tbk PT 774,800 329 Safran S.A.* 1,646 224 Ireland – 1.3% Sanofi 8,710 861 Allegion PLC 17,400 2,186 Schneider Electric S.E. 6,503 994 ICON PLC* 2,654 521 Thales S.A. 3,383 336 Medtronic PLC 19,600 2,315 TOTAL S.E. 5,071 236 Vivendi S.A. 40,666 1,336 5,022 13,303 Israel – 0.3% Check Point Software Technologies Germany–3.5% Ltd.* 9,772 1,094 Allianz S.E. (Registered) 2,340 596 Italy – 0.9% Brenntag S.E. 8,851 756 Banca Mediolanum S.p.A.* 4,423 42 Daimler A.G. (Registered) 5,000 445 Enel S.p.A. 52,106 521 Deutsche Boerse A.G. 37,403 6,217 Italgas S.p.A. 165,588 1,077 Deutsche Post A.G. (Registered) 13,946 764 Snam S.p.A. 378,610 2,102 Fresenius Medical Care A.G. & Co. KGaA 2,692 198 3,742 LEG Immobilien S.E. 4,205 553 Japan – 7.1% Muenchener Asahi Group Holdings Ltd. 5,100 216 Rueckversicherungs-Gesellschaft Bridgestone Corp. 45,000 1,828 A.G. in Muenchen (Registered) 1,539 474 Daito Trust Construction Co. Ltd. 6,900 803 SAP S.E. 2,047 251 ENEOS Holdings, Inc. 157,000 711 SAP S.E. ADR 10,486 1,287 Fujitsu Ltd. 3,700 537 Siemens A.G. (Registered) 3,020 496 Honda Motor Co. Ltd. 20,000 602 Telefonica Deutschland Holding A.G. 739,028 2,166 Hoya Corp. 1,800 212 14,203 ITOCHU Corp. 44,700 1,453 Greece – 0.0% Japan Tobacco, Inc. 95,200 1,831 Hellenic Telecommunications KDDI Corp. 2,400 74 Organization S.A. 8,520 137 McDonald’s Holdings Co. Japan Ltd. 9,600 442 Hong Kong – 0.5% Mitsubishi Gas Chemical Co., Inc. 11,700 288 BOC Hong Kong Holdings Ltd. 135,000 471 Mitsubishi UFJ Financial Group, Inc. China Resources Cement Holdings Ltd. 206,000 232 ADR 193,300 1,040 CK Asset Holdings Ltd. 18,000 109 Nintendo Co. Ltd. 9,200 5,150 CLP Holdings Ltd. 83,500 811 Nintendo Co. Ltd. ADR 5,950 421 Kunlun Energy Co. Ltd. 264,000 278 Nippon Sanso Holdings Corp. 12,100 230 WH Group Ltd.(2) 274,000 223 Nippon Telegraph & Telephone Corp. 7,600 196 2,124 Nissan Chemical Corp. 8,000 428 Ono Pharmaceutical Co. Ltd. 18,700 490 India–0.5% ORIX Corp. 26,300 445 Dr. Reddy’s Laboratories Ltd. ADR 12,400 761 Renesas Electronics Corp.* 30,000 330 Sankyo Co. Ltd. 4,400 117

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 44 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

NUMBER VALUE NUMBER VALUE OF SHARES (000S) OF SHARES (000S) COMMON STOCKS – 94.6% (1) continued COMMON STOCKS – 94.6% (1) continued Japan – 7.1% continued South Africa – 0.4% continued Secom Co. Ltd. 7,100 $599 Anglo American Platinum Ltd. 3,363 $493 Sony Corp. 12,900 1,358 Sanlam Ltd. 116,074 468 Sony Corp. ADR 30,300 3,212 Vodacom Group Ltd. 22,110 189 Subaru Corp. 115,300 2,308 1,434 5,300 230 Sumitomo Metal Mining Co. Ltd. South Korea – 1.6% 22,300 806 Takeda Pharmaceutical Co. Ltd. Hana Financial Group, Inc. 29,367 1,108 2,600 1,113 Tokyo Electron Ltd. Hyundai Mobis Co. Ltd. 765 199 19,200 368 Tosoh Corp. KB Financial Group, Inc. 16,739 830 9,800 336 Welcia Holdings Co. Ltd. Kia Motors Corp. 4,210 310 9,200 272 ZOZO, Inc. KT&G Corp. 21,790 1,568 28,446 Kumho Petrochemical Co. Ltd. 1,210 285 Mexico – 0.2% LG Household & Health Care Ltd. 90 125 Grupo Financiero Banorte S.A.B. de LG Innotek Co. Ltd. 3,404 621 C.V., Series O* 40,214 227 Orion Corp. 1,360 158 Wal-Mart de Mexico S.A.B. de C.V. 117,608 371 Samsung Electronics Co. Ltd. 9,571 691 598 Shinhan Financial Group Co. Ltd. 17,747 588 Netherlands – 2.3% Woori Financial Group, Inc. 13,415 120 Akzo Nobel N.V. 5,520 617 6,603 ASML Holding N.V. 1,483 905 Spain – 1.0% Koninklijke Ahold Delhaize N.V. 172,683 4,810 Endesa S.A. 122,490 3,244 Royal Dutch Shell PLC, Class B 47,146 867 Tecnicas Reunidas S.A.* 46,217 675 Stellantis N.V. 43,386 767 3,919 Wolters Kluwer N.V. 12,613 1,096 Sweden – 1.0% 9,062 Alfa Laval AB* 7,560 228 New Zealand – 0.1% Atlas Copco AB, Class A 5,954 362 Fisher & Paykel Healthcare Corp. Ltd. 20,420 458 Evolution Gaming Group AB 1,860 274 Peru – 0.2% Husqvarna AB, Class B 11,210 161 Credicorp Ltd. 5,966 815 Lundin Energy AB 11,350 357 Portugal – 0.0% Sandvik AB* 37,371 1,021 Jeronimo Martins SGPS S.A. 9,710 163 Spotify Technology S.A.* 4,585 1,229 Russia – 0.1% Telefonaktiebolaget LM Ericsson, Class B 34,000 450 MMC Norilsk Nickel PJSC ADR 12,156 379 Moscow Exchange MICEX-RTS PJSC 51,540 119 4,082 Switzerland – 4.6% 498 Alcon, Inc.* 28,900 2,028 Singapore – 0.7% Chubb Ltd. 10,200 1,611 DBS Group Holdings Ltd. 56,200 1,212 CRISPR Therapeutics A.G.* 11,040 1,345 Genting Singapore Ltd. 402,300 276 Logitech International S.A. (Registered) 3,805 399 Sea Ltd. ADR* 2,405 537 Nestle S.A. (Registered) 7,922 883 Singapore Exchange Ltd. 88,800 660 Novartis A.G. (Registered) 22,769 1,945 2,685 Novartis A.G. ADR 18,200 1,556 South Africa – 0.4% Partners Group Holding A.G. 232 297 African Rainbow Minerals Ltd. 15,000 284 Roche Holding A.G. (Genusschein) 21,055 6,806

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 45 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

TM NORTHERN ENGAGE360 FUND continued

NUMBER VALUE NUMBER VALUE OF SHARES (000S) OF SHARES (000S) COMMON STOCKS – 94.6% (1) continued COMMON STOCKS – 94.6% (1) continued Switzerland – 4.6% continued United States – 51.2% continued Sonova Holding A.G. (Registered)* 630 $167 Air Lease Corp. 15,055 $738 Swisscom A.G. (Registered) 2,357 1,264 Air Products and Chemicals, Inc. 8,037 2,261 18,301 Akamai Technologies, Inc.* 2,857 291 3,183 465 Taiwan – 1.1% Albemarle Corp. 1,526 3,157 Catcher Technology Co. Ltd. 86,000 639 Alphabet, Inc., Class C* 919 2,843 CTBC Financial Holding Co. Ltd. 342,000 265 Amazon.com, Inc.* 9,069 2,168 Delta Electronics, Inc. 58,000 591 American Tower Corp. 12,247 471 Pou Chen Corp. 229,000 265 Americold Realty Trust 10,114 2,351 Powertech Technology, Inc. 40,000 148 Ameriprise Financial, Inc. 2,905 343 Realtek Semiconductor Corp. 39,000 682 AmerisourceBergen Corp. 10,700 2,662 Taiwan Semiconductor Manufacturing Amgen, Inc. Co. Ltd. 64,000 1,331 Amphenol Corp., Class A 18,394 1,213 Uni-President Enterprises Corp. 121,000 311 ANSYS, Inc.* 12,729 4,322 United Microelectronics Corp. 155,000 277 Apple, Inc. 24,786 3,028 Applied Materials, Inc. 4,805 642 4,509 Arrow Electronics, Inc.* 4,552 504 Turkey – 0.2% Berkshire Hathaway, Inc., Class B* 12,210 3,119 Turk Telekomunikasyon A.S. 425,542 351 Bio-Rad Laboratories, Inc., Class A* 1,059 605 Turkiye Garanti Bankasi A.S.* 201,545 164 Black Knight, Inc.* 5,921 438 Turkiye Is Bankasi A.S., Class C* 167,466 98 Boston Properties, Inc. 4,361 442 613 Cabot Oil & Gas Corp. 96,900 1,820 United Kingdom – 3.6% Capital One Financial Corp. 23,500 2,990 3i Group PLC 70,008 1,114 CBRE Group, Inc., Class A* 9,478 750 Anglo American PLC 4,910 192 CDK Global, Inc. 11,849 641 BAE Systems PLC 30,985 216 Charles Schwab (The) Corp. 31,376 2,045 Direct Line Insurance Group PLC 199,570 862 Cimarex Energy Co. 8,404 499 Evraz PLC 40,170 320 Cincinnati Financial Corp. 21,000 2,165 GlaxoSmithKline PLC 262,512 4,660 CMC Materials, Inc. 2,634 466 JD Sports Fashion PLC* 29,769 338 Coca-Cola (The) Co. 39,400 2,077 Linde PLC 4,472 1,253 Comcast Corp., Class A 27,380 1,482 National Grid PLC 113,822 1,357 Commerce Bancshares, Inc. 19,582 1,500 Next PLC* 5,186 562 Continental Resources, Inc.* 14,173 367 Nomad Foods Ltd.* 9,300 255 Corteva, Inc. 71,000 3,310 RELX PLC 28,142 706 Crown Castle International Corp. 15,572 2,680 Unilever PLC 17,073 953 CSX Corp. 6,805 656 Unilever PLC ADR 23,126 1,291 Cullen/Frost Bankers, Inc. 16,300 1,773 Vodafone Group PLC 231,963 422 Cummins, Inc. 2,014 522 14,501 D.R. Horton, Inc. 9,931 885 United States – 51.2% Danaher Corp. 16,499 3,714 10X Genomics, Inc., Class A* 2,999 543 Darden Restaurants, Inc. 5,404 767 2U, Inc.* 21,137 808 DENTSPLY SIRONA, Inc. 7,457 476 Activision Blizzard, Inc. 6,844 636 Dollar Tree, Inc.* 5,527 633 Adobe, Inc.* 12,550 5,966 Dover Corp. 3,016 414 Agilent Technologies, Inc. 4,839 615 East West Bancorp, Inc. 26,500 1,956

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 46 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

NUMBER VALUE NUMBER VALUE OF SHARES (000S) OF SHARES (000S) COMMON STOCKS – 94.6% (1) continued COMMON STOCKS – 94.6% (1) continued United States – 51.2% continued United States – 51.2% continued Eastman Chemical Co. 3,518 $387 PNC Financial Services Group (The), Ecolab, Inc. 4,243 908 Inc. 14,100 $2,473 Editas Medicine, Inc.* 15,555 653 Procter & Gamble (The) Co. 15,150 2,052 Elanco Animal Health, Inc.* 64,300 1,894 Progressive (The) Corp. 6,343 606 Equity LifeStyle Properties, Inc. 15,100 961 Proto Labs, Inc.* 5,391 656 Exact Sciences Corp.* 5,137 677 Pure Storage, Inc., Class A* 33,052 712 Facebook, Inc., Class A* 5,880 1,732 QUALCOMM, Inc. 20,647 2,738 First Republic Bank 17,586 2,932 Raymond James Financial, Inc. 4,687 574 Fortive Corp. 20,052 1,416 Regeneron Pharmaceuticals, Inc.* 463 219 General Dynamics Corp. 11,916 2,163 Reinsurance Group of America, Inc. 3,032 382 Global Payments, Inc. 3,685 743 RenaissanceRe Holdings Ltd. 2,879 461 Honeywell International, Inc. 10,576 2,296 Republic Services, Inc. 6,931 689 Houlihan Lokey, Inc. 5,762 383 Roku, Inc.* 4,762 1,551 Intellia Therapeutics, Inc.* 29,719 2,385 Roper Technologies, Inc. 2,943 1,187 Intercontinental Exchange, Inc. 8,665 968 RPM International, Inc. 23,400 2,149 Intuit, Inc. 7,517 2,879 salesforce.com, Inc.* 6,427 1,362 Invitae Corp.* 30,426 1,163 SBA Communications Corp. 1,473 409 Iridium Communications, Inc.* 10,450 431 Scotts Miracle-Gro (The) Co. 2,499 612 Johnson & Johnson 13,883 2,282 Sealed Air Corp. 9,693 444 Johnson Controls International PLC 43,200 2,578 Sensata Technologies Holding PLC* 8,969 520 JPMorgan Chase & Co. 17,800 2,710 Seres Therapeutics, Inc.* 18,643 384 KeyCorp 24,711 494 Skyworks Solutions, Inc. 5,006 919 Keysight Technologies, Inc.* 5,189 744 Snap-on, Inc. 2,292 529 Laboratory Corp. of America Square, Inc., Class A* 9,933 2,255 Holdings* 1,672 426 Starbucks Corp. 7,213 788 LendingTree, Inc.* 2,323 495 Stericycle, Inc.* 7,035 475 Lennar Corp., Class A 30,100 3,047 Stifel Financial Corp. 8,644 554 Markel Corp.* 2,041 2,326 Stratasys Ltd.* 28,692 743 Martin Marietta Materials, Inc. 8,200 2,754 Sun Communities, Inc. 6,802 1,021 Masco Corp. 9,303 557 Syneos Health, Inc.* 5,547 421 Mettler-Toledo International, Inc.* 1,265 1,462 Synopsys, Inc.* 3,637 901 Microchip Technology, Inc. 38,272 5,941 Sysco Corp. 5,587 440 Microsoft Corp. 26,817 6,323 Teladoc Health, Inc.* 8,937 1,624 Moody’s Corp. 6,516 1,946 Teleflex, Inc. 5,240 2,177 NIKE, Inc., Class B 12,474 1,658 Tesla, Inc.* 4,652 3,107 O’Reilly Automotive, Inc.* 1,798 912 TJX (The) Cos., Inc. 5,445 360 PACCAR, Inc. 3,500 325 TransDigm Group, Inc.* 1,548 910 Packaging Corp. of America 2,722 366 Twilio, Inc., Class A* 2,648 902 PagerDuty, Inc.* 15,624 629 Twitter, Inc.* 51,456 3,274 Parker-Hannifin Corp. 9,700 3,060 Tyson Foods, Inc., Class A 22,700 1,687 PayPal Holdings, Inc.* 10,586 2,571 U.S. Bancorp 19,931 1,102 PepsiCo, Inc. 8,003 1,132 Unity Software, Inc.* 3,300 331 Philip Morris International, Inc. 50,968 4,523 Visa, Inc., Class A 8,764 1,856 Phillips 66 18,900 1,541 Vontier Corp.* 18,640 564

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 47 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

TM NORTHERN ENGAGE360 FUND continued

NUMBER VALUE * Non-Income Producing Security OF SHARES (000S) COMMON STOCKS – 94.6% (1) continued EXPLANATION OF ABBREVIATIONS AND ACRONYMS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS: United States – 51.2% continued Walgreens Boots Alliance, Inc. 21,500 $1,180 A.G. – Aktiengesellschaft (German: Stock Corporation) WEC Energy Group, Inc. 4,616 432 AB – Aktiebolag (Sweden: Corporation) Woodward, Inc. 4,107 495 Xilinx, Inc. 4,982 617 ADR – American Depositary Receipt Xylem, Inc. 23,800 2,503 EAFE – Europe, Australasia and the Far East Zillow Group, Inc., Class C* 9,252 1,199 Zoom Video Communications, Inc., MSCI – Morgan Stanley Capital International Class A* 1,129 363 204,901 N.V. – Naamloze Vennootschap (Dutch: Limited Liability Company)

Total Common Stocks PJSC – Public Joint-Stock Company (Cost $289,730) 379,098 PLC – Public Limited Company INVESTMENT COMPANIES – 4.5% S&P – Standard & Poor’s Northern Institutional Funds - U.S. Government Portfolio (Shares), S.A. – Société Anonyme (French: Public Limited Company) 0.00%(3) (4) 17,897,651 17,898 Total Investment Companies S.A.B. de C.V. – Sociedad Anónima Bursátil de Capital Variable (Mexico: Public Company) (Cost $17,898) 17,898 S.E. – Societas Europaea (German: Public Company) PRINCIPAL AMOUNT VALUE (000S) (000S) Percentages shown are based on Net Assets. SHORT-TERM INVESTMENTS – 0.2% U.S. Treasury Bills, 0.06%, 7/15/21(5) (6) $890 $890 Total Short-Term Investments (Cost $890) 890

Total Investments – 99.3% (Cost $308,518) 397,886 Other Assets less Liabilities – 0.7% 2,613 Net Assets – 100.0% $400,499

(1) Adjustment factors obtained from an independent evaluation service were used to determine the value of certain foreign securities. (2) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Board of Trustees of Northern Funds. (3) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds. (4) 7-day current yield as of March 31, 2021 is disclosed. (5) Security pledged as collateral to cover margin requirements for open futures contracts. (6) Discount rate at the time of purchase.

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 48 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

At March 31, 2021, the Fund had outstanding forward foreign currency At March 31, 2021, the industry sectors for the Fund were: exchange contracts as follows: %OFNET CONTRACTS AMOUNT IN AMOUNT UNREALIZED INDUSTRY SECTOR ASSETS TO (LOCAL EXCHANGE (LOCAL APPRECIATION DELIVER CURRENCY) FOR CURRENCY) SETTLEMENT (DEPRECIATION) COUNTERPARTY CURRENCY (000S) CURRENCY (000S) DATE (000S) Communication Services 9.5% JPMorgan Chase Euro 345 Australian Dollar 547 4/28/21 $ 11 Consumer Discretionary 10.0 JPMorgan Chase Euro 1,570 British Pound 1,391 4/28/21 75 Consumer Staples 7.0 JPMorgan Chase Euro 701 Canadian Dollar 1,068 4/28/21 28 Energy 2.0 JPMorgan Chase Euro 1,081 Chinese Yuan Renminbi 8,448 4/28/21 16 JPMorgan Chase Euro 150 Israeli Shekel 599 4/28/21 3 Financials 16.6 JPMorgan Chase Euro 30 New Zealand Dollar 50 4/28/21 —* Health Care 12.7 JPMorgan Chase Euro 159 Norwegian Krone 1,653 4/28/21 7 Industrials 9.0 JPMorgan Chase Euro 98 Singapore Dollar 158 4/28/21 3 JPMorgan Chase Japanese Yen 41,715 Chinese Yuan Renminbi 2,588 4/28/21 17 Information Technology 17.2 JPMorgan Chase Japanese Yen 61,261 United States Dollar 586 4/28/21 32 Materials 5.4 JPMorgan Chase United States Dollar 1,786 Canadian Dollar 2,281 4/28/21 29 Real Estate 2.8 Subtotal Appreciation 221 Short-Term Investments 4.7 JPMorgan Chase Euro 672 Australian Dollar 1,033 4/28/21 (4) Utilities 2.4 JPMorgan Chase Euro 928 Swedish Krona 9,398 4/28/21 (12) JPMorgan Chase United States Dollar 2,328 Australian Dollar 3,037 4/28/21 (21) Total Investments 99.3 JPMorgan Chase United States Dollar 1,479 Canadian Dollar 1,857 4/28/21 (2) Other Assets less Liabilities 0.7 JPMorgan Chase United States Dollar 2,020 Chinese Yuan Renminbi 13,108 4/28/21 (27) Net Assets 100.0% JPMorgan Chase United States Dollar 95 Norwegian Krone 809 4/28/21 —* JPMorgan Chase United States Dollar 579 Singapore Dollar 769 4/28/21 (8) At March 31, 2021, the Fund’s investments were denominated in the following JPMorgan Chase United States Dollar 354 Swedish Krona 2,949 4/28/21 (16) currencies: Subtotal Depreciation (90)

Total $ 131 %OFNET CONCENTRATION BY CURRENCY ASSETS * Amount rounds to less than one thousand. United States Dollar 66.0% At March 31, 2021, the Fund had open futures contracts as follows: Euro 11.0 Japanese Yen 5.9 VALUE AND UNREALIZED All other currencies less than 5% 16.4 NOTIONAL APPRECIATION NUMBER OF AMOUNT CONTRACT CONTRACT (DEPRECIATION) Total Investments 99.3 (1) TYPE CONTRACTS (000S) POSITION EXP. (000S) Other Assets less Liabilities 0.7 E-Mini S&P Net Assets 100.0% 500 (United States Various inputs are used in determining the value of the Fund’s investments. These Dollar) 31 $6,149 Long 6/21 $ 82 inputs are summarized in three levels listed below: MSCI EAFE Index Level 1 - Unadjusted quoted market prices in active markets for identical securities (United States on the measurement date. Dollar) 36 3,946 Long 6/21 (14) Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest MSCI rates and yield curves, maturities, ratings and/or securities indices). The Fund Emerging adjusted the price of certain foreign equity securities held in its portfolio on Markets Index March 31, 2021 using adjustment factors designed to reflect more accurately the (United States fair value of the securities. See Note 2 for a discussion of this procedure. The fair Dollar) 21 1,389 Long 6/21 (13) valuation of these securities resulted in their categorization as Level 2 investments. Total $55 Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security). (1) Includes cumulative appreciation/depreciation on futures contracts. Only the current day’s variation margin is reported within the Statements of Assets and The inputs or methodologies used for valuing securities are not necessarily an Liabilities. indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuations of the Fund’s investments by the above fair value hierarchy as of March 31, 2021:

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 49 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

TM NORTHERN ENGAGE360 FUND continued MARCH 31, 2021

LEVEL 1 LEVEL 2 LEVEL 3 TOTAL INVESTMENTS (000S) (000S) (000S) (000S) Common Stocks: Brazil $ 3,328 $ — $— $ 3,328 Canada 8,623 — — 8,623 Chile 936 — — 936 China 10,085 5,236 — 15,321 France 2,454 10,849 — 13,303 Germany 1,287 12,916 — 14,203 India 2,004 — — 2,004 Ireland 5,022 — — 5,022 Israel 1,094 — — 1,094 Japan 4,673 23,773 — 28,446 Mexico 598 — — 598 Peru 815 — — 815 Singapore 537 2,148 — 2,685 Sweden 1,229 2,853 — 4,082 Switzerland 6,540 11,761 — 18,301 United Kingdom 2,799 11,702 — 14,501 United States 204,901 — — 204,901 All Other Countries(1) — 40,935 — 40,935 Total Common Stocks 256,925 122,173 — 379,098 Investment Companies 17,898 — — 17,898 Short-Term Investments — 890 — 890 Total Investments $274,823 $123,063 $— $397,886 OTHER FINANCIAL INSTRUMENTS Assets Forward Foreign Currency Exchange Contracts $ — $ 221 $— $ 221 Futures Contracts 82 — — 82 Liabilities Forward Foreign Currency Exchange Contracts — (90) — (90) Futures Contracts (27) — — (27) Total Other Financial Instruments $ 55 $ 131 $— $ 186 (1) Classifications as defined in the Schedule of Investments.

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 50 NORTHERN FUNDS ANNUAL REPORT SCHEDULE OF INVESTMENTS

MULTI-MANAGER EMERGING MARKETS DEBT OPPORTUNITY FUND MARCH 31, 2021

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S)(1) (000S) (000S)(1) (000S) CONVERTIBLE BONDS – 0.1% FOREIGN ISSUER BONDS – 92.7% continued Bermuda–0.1% Argentina – 1.9% continued Digicel Group 0.5 Ltd., (Step to 9.00% on 1/1/23), 4.00%, (5) (7) 7.00%, 4/21/21 (2) (3) (4) $78 $57 2/12/26 $269 $220 Total Convertible Bonds (Step to 9.00% on 1/1/23), 2.50%, (5) (7) 429 243 (Cost $16) 57 6/30/29 2,722 CORPORATE BONDS – 1.7% Azerbaijan – 1.1% United States – 1.7% Republic of Azerbaijan International Bond, (4) CEDC Finance Corp. International, Inc., 4.75%, 3/18/24 400 434 (4) 10.00%, 12/31/22 (5) 85 63 3.50%, 9/1/32 612 606 Citigroup Global Markets Holdings, Inc., Southern Gas Corridor CJSC, (4) 14.31%, 10/17/23 (EGP)(6) 12,500 789 6.88%, 3/24/26 200 237 JPMorgan Chase Bank N.A., State Oil Co. of the Azerbaijan Republic, (4) 2.68%, 5/21/30 (CNY)(4) 9,000 1,312 6.95%, 3/18/30 200 248 7.50%, 8/17/32 (IDR)(5) 4,849,000 343 1,525 2,507 Bahrain – 0.5% Total Corporate Bonds Bahrain Government International Bond, (Cost $2,529) 2,507 5.45%, 9/16/32 (4) 450 436 Oil and Gas Holding (The) Co. BSCC, FOREIGN ISSUER BONDS – 92.7% 8.38%, 11/7/28 (4) 200 232 Angola–1.1% 668 Angolan Government International Bond, Belarus – 0.1% (4) 9.50%, 11/12/25 200 210 Republic of Belarus Ministry of Finance, (4) 8.25%, 5/9/28 400 385 5.88%, 2/24/26 (4) 200 192 (4) 1,065 1,007 9.38%, 5/8/48 Bermuda – 0.5% 1,602 Digicel Group 0.5 Ltd., Argentina – 1.9% 10.00%, 4/1/24 (3) 354 344 Argentine Republic Government 8.00%, 4/1/25 (3) (4) 258 213 International Bond, Digicel Holdings Bermuda Ltd./Digicel 1.00%, 7/9/29 329 118 International Finance Ltd., (Step to 0.50% on 7/9/21), 0.13%, 8.75%, 5/25/24 (4) 31 32 (7) 7/9/30 1,539 515 8.00%, 12/31/26 (4) 65 62 (Step to 1.13% on 7/9/21), 0.13%, 651 7/9/35 (7) 3,348 999 Brazil – 6.9% (Step to 2.00% on 7/9/21), 0.13%, 1/9/38 (7) 530 194 Banco do Brasil S.A., (Step to 2.50% on 7/9/21), 0.13%, (Variable, U.S. Treasury Yield Curve 7/9/41 (7) 495 171 Rate CMT 10Y + 4.40%), 6.25%, 4/15/24 (2) (4) (8) 200 197 Pampa Energia S.A., (Variable, U.S. Treasury Yield Curve 7.38%, 7/21/23 (4) 105 97 Rate CMT 10Y + 6.36%), 9.00%, Provincia de Buenos Aires, 6/18/24 (2) (4) (8) 200 218 6.50%, 2/15/23 (4) 450 165 Brazil Letras do Tesouro Nacional, YPF S.A., 0.00%, 4/1/22 (BRL)(9) 5,834 986 0.00%, 1/1/24 (BRL)(9) 6,370 921

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 51 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

MULTI-MANAGER EMERGING MARKETS DEBT OPPORTUNITY FUND continued

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S)(1) (000S) (000S)(1) (000S) FOREIGN ISSUER BONDS – 92.7% continued FOREIGN ISSUER BONDS – 92.7% continued Brazil – 6.9% continued Chile – 1.5% continued Brazil Notas do Tesouro Nacional, Serie F, 4.38%, 2/5/49 (4) $220 $243 10.00%, 1/1/23 (BRL) $5,200 $973 Empresa Nacional del Petroleo, 10.00%, 1/1/25 (BRL) 5,858 1,098 4.50%, 9/14/47 (4) 200 200 10.00%, 1/1/27 (BRL) 3,628 678 2,134 5,654 1,051 10.00%, 1/1/29 (BRL) China–4.1% 406 75 10.00%, 1/1/31 (BRL) CFLD Cayman Investment Ltd., Brazilian Government International Bond, 9.00%, 7/31/21 (4) 225 85 38 50 8.25%, 1/20/34 6.90%, 1/13/23 (4) 300 111 103 126 7.13%, 1/20/37 China Evergrande Group, 850 805 5.00%, 1/27/45 11.50%, 1/22/23 (4) 200 187 200 203 5.63%, 2/21/47 7.50%, 6/28/23 (4) 370 319 CSN Islands XII Corp., 10.50%, 4/11/24 (4) 450 402 (2) (4) 225 226 7.00%, 6/23/21 8.75%, 6/28/25 (4) 400 318 Oi S.A., China Government Bond, (3) (4) 1,615 1,704 10.00%,(100% Cash), 7/27/25 2.88%, 11/5/23 (CNY) 2,900 443 Samarco Mineracao S.A., 3.02%, 10/22/25 (CNY) 5,810 887 4.13%, 11/1/22 (4) (10) 200 156 3.27%, 11/19/30 (CNH) 6,500 997 5.75%, 10/24/23 (4) (10) 400 338 3.81%, 9/14/50 (CNH) 1,400 217 5.38%, 9/26/24 (4) (10) 300 254 Kaisa Group Holdings Ltd., 10,059 8.50%, 6/30/22 (4) 415 423 Canada – 0.6% 11.50%, 1/30/23 (4) 200 208 First Quantum Minerals Ltd., 10.88%, 7/23/23 (4) 200 208 7.50%, 4/1/25 (4) 290 299 9.38%, 6/30/24 (4) 465 448 6.88%, 3/1/26 (4) 290 300 Scenery Journey Ltd., 6.88%, 10/15/27 (4) 200 215 11.50%, 10/24/22 (4) 320 294 (4) 814 12.00%, 10/24/23 200 176 Sinopec Group Overseas Development Cayman Islands – 0.3% 2012 Ltd., Fantasia Holdings Group Co. Ltd., 4.88%, 5/17/42 (4) 200 238 12.25%, 10/18/22 (4) 200 202 10.88%, 1/9/23 (4) 200 200 5,961 Colombia – 3.4% 402 Colombia Government International Bond, Chile – 1.5% 8.13%, 5/21/24 103 123 Bonos de la Tesoreria de la Republica, 3.88%, 4/25/27 200 214 1.90%, 9/1/30 (CLP) 123 4.50%, 3/15/29 300 327 2.00%, 3/1/35 (CLP) 170 7.38%, 9/18/37 100 132 Bonos de la Tesoreria de la Republica en 165 195 pesos, 6.13%, 1/18/41 200 227 4.50%, 3/1/26 (CLP) 330,000 509 5.63%, 2/26/44 450 478 5.00%, 3/1/35 (CLP) 245,000 372 5.00%, 6/15/45 Corp. Nacional del Cobre de Chile, Colombian TES, 2,076,300 663 5.63%, 10/18/43 (4) 200 257 10.00%, 7/24/24 (COP) 2,283,700 648 4.88%, 11/4/44 (4) 200 235 6.25%, 11/26/25 (COP) 250,400 67 4.50%, 8/1/47 (4) 200 225 5.75%, 11/3/27 (COP)

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 52 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S)(1) (000S) (000S)(1) (000S) FOREIGN ISSUER BONDS – 92.7% continued FOREIGN ISSUER BONDS – 92.7% continued Colombia – 3.4% continued Ecuador – 1.8% continued 6.00%, 4/28/28 (COP) $6,366,100 $1,701 (Step to 1.00% on 7/31/21), 0.50%, (5) (7) Empresas Publicas de Medellin ESP, 7/31/35 $2,976 $1,377 8.38%, 11/8/27 (COP)(4) 693,000 193 (Step to 0.50% on 7/31/21), 0.50%, 7/31/40 (5) (7) 878 385 4,968 2,613 Costa Rica – 0.6% Costa Rica Government International Bond, Egypt – 2.6% 6.44%, 11/21/29 (4) 480 466 Egypt Government Bond, 704 45 5.63%, 4/30/43 (4) 400 348 14.05%, 7/21/22 (EGP) 14.14%, 10/20/22 (EGP) 431 28 814 14.31%, 10/13/23 (EGP) 620 40 Croatia – 0.2% Egypt Government International Bond, Croatia Government International Bond, 7.50%, 1/31/27 (4) 200 218 6.00%, 1/26/24 (4) 200 229 6.59%, 2/21/28 (4) 300 309 Czech Republic – 1.2% 7.60%, 3/1/29 (4) 200 213 Czech Republic Government Bond, 5.88%, 2/16/31 (5) 200 187 (4) 0.45%, 10/25/23 (CZK) 20,000 887 7.05%, 1/15/32 (4) 229 227 (4) 2.40%, 9/17/25 (CZK) 7,100 332 7.63%, 5/29/32 (4) 200 205 (4) 0.95%, 5/15/30 (CZK) 6,500 270 8.50%, 1/31/47 (4) 600 599 1.20%, 3/13/31 (CZK) 3,100 130 7.90%, 2/21/48 (4) 700 661 2.00%, 10/13/33 (CZK) 3,250 145 8.88%, 5/29/50 (4) 400 410 (4) 4.20%, 12/4/36 (CZK) 390 22 Egypt Treasury Bills, 1,786 11.93%, 5/18/21 (EGP)(11) 3,500 220 Dominican Republic – 2.4% 11.88%, 6/1/21 (EGP)(11) 2,400 150 Dominican Republic International Bond, 11.79%, 8/10/21 (EGP)(11) 4,600 280 5.50%, 1/27/25 (4) 550 604 3,792 (4) 6.88%, 1/29/26 230 267 El Salvador – 0.7% (4) 4.88%, 9/23/32 530 541 El Salvador Government International Bond, (5) 5.30%, 1/21/41 150 147 6.38%, 1/18/27 (4) 73 72 (4) 7.45%, 4/30/44 190 224 8.63%, 2/28/29 (4) 413 440 (4) 6.85%, 1/27/45 800 884 8.25%, 4/10/32 79 82 (4) 6.50%, 2/15/48 200 211 7.65%, 6/15/35 (4) 39 38 (4) 6.40%, 6/5/49 200 209 7.63%, 2/1/41 (4) 150 144 (4) 5.88%, 1/30/60 370 354 7.12%, 1/20/50 (4) 150 134 3,441 9.50%, 7/15/52 (4) 150 159 Ecuador – 1.8% 1,069 Ecuador Government International Bond, Gabon – 0.1% (Step to 5.00% on 7/31/21), 0.50%, Gabon Government International Bond, 7/31/30 (5) (7) 1,316 782 6.63%, 2/6/31 (4) 200 194 0.00%, 7/31/30 (5) (9) 168 69 Ghana – 0.8% Ghana Government International Bond, 10.75%, 10/14/30 (4) 400 500 8.63%, 4/7/34 (5) 200 197

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 53 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

MULTI-MANAGER EMERGING MARKETS DEBT OPPORTUNITY FUND continued

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S)(1) (000S) (000S)(1) (000S) FOREIGN ISSUER BONDS – 92.7% continued FOREIGN ISSUER BONDS – 92.7% continued Ghana – 0.8% continued Indonesia – 8.1% continued 7.88%, 2/11/35 (4) $200 $187 8.38%, 9/15/26 (IDR) $9,222,000 $703 8.95%, 3/26/51 (4) 215 204 7.00%, 5/15/27 (IDR) 5,276,000 378 1,088 6.13%, 5/15/28 (IDR) 1,732,000 116 7,246,000 568 Guatemala – 0.6% 9.00%, 3/15/29 (IDR) 2,589,000 195 Guatemala Government Bond, 8.25%, 5/15/29 (IDR) 2,813,000 243 5.38%, 4/24/32 (4) 575 651 10.50%, 8/15/30 (IDR) 4,673,000 326 6.13%, 6/1/50 (4) 200 232 7.00%, 9/15/30 (IDR) 6.50%, 2/15/31 (IDR) 7,800,000 527 883 7.75%, 4/15/31 (IDR) 1,177,000 86 Honduras – 0.4% 8.75%, 5/15/31 (IDR) 11,474,000 896 Honduras Government International Bond, 9.50%, 7/15/31 (IDR) 13,412,000 1,088 6.25%, 1/19/27 (4) 300 328 8.38%, 3/15/34 (IDR) 2,949,000 223 5.63%, 6/24/30 (4) 300 313 7.50%, 6/15/35 (IDR) 974,000 69 641 8.25%, 5/15/36 (IDR) 16,589,000 1,229 Hungary – 1.8% 7.50%, 5/15/38 (IDR) 1,561,000 108 Hungary Government Bond, 8.38%, 4/15/39 (IDR) 1,310,000 97 1.50%, 8/24/22 (HUF) 130,000 425 Perusahaan Penerbit SBSN Indonesia III, 1.50%, 8/23/23 (HUF) 118,500 388 4.55%, 3/29/26 (4) 200 225 2.50%, 10/24/24 (HUF) 115,000 386 4.40%, 3/1/28 (4) 250 280 3.00%, 10/27/27 (HUF) 160,000 547 Perusahaan Perseroan Persero PT 3.00%, 8/21/30 (HUF) 114,090 387 Perusahaan Listrik Negara, Hungary Government International Bond, 5.50%, 11/22/21 (4) 200 206 5.75%, 11/22/23 238 269 11,787 5.38%, 3/25/24 156 177 Ivory Coast – 0.7% 2,579 Ivory Coast Government International Bond, India–0.2% 5.88%, 10/17/31 (EUR)(4) 119 148 Export-Import Bank of India, 4.88%, 1/30/32 (EUR)(5) 102 117 4.00%, 1/14/23 (4) 200 210 5.75%, 12/31/32 (4) 95 96 (4) Indonesia – 8.1% 6.13%, 6/15/33 540 553 (4) Indonesia Asahan Aluminium Persero PT, 6.88%, 10/17/40 (EUR) 125 154 5.71%, 11/15/23 (4) 200 220 1,068 6.76%, 11/15/48 (4) 200 249 Kazakhstan – 0.5% Indonesia Government International Bond, Development Bank of Kazakhstan JSC, 4.75%, 2/11/29 500 574 4.13%, 12/10/22 (4) 200 208 8.50%, 10/12/35 (4) 100 156 Kazakhstan Government International Bond, 6.63%, 2/17/37 (4) 550 731 6.50%, 7/21/45 (4) 200 284 7.75%, 1/17/38 (4) 200 294 KazMunayGas National Co. JSC, 5.25%, 1/17/42 (4) 600 717 5.38%, 4/24/30 (4) 200 238 (4) 5.13%, 1/15/45 550 651 730 5.95%, 1/8/46 (4) 200 263 Kenya–0.4% 5.25%, 1/8/47 (4) 200 242 Kenya Government International Bond, Indonesia Treasury Bond, 6.88%, 6/24/24 (4) 550 606 6.50%, 6/15/25 (IDR) 1,793,000 127

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 54 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S)(1) (000S) (000S)(1) (000S) FOREIGN ISSUER BONDS – 92.7% continued FOREIGN ISSUER BONDS – 92.7% continued Lebanon – 0.3% Mexico – 7.8% continued Lebanon Government International Bond, 10.00%, 11/20/36 (MXN) $9,100 $557 6.38%, 3/9/20 (4) (10) $267 $32 8.50%, 11/18/38 (MXN) 16,680 898 5.80%, 4/14/20 (10) 188 23 7.75%, 11/13/42 (MXN) 5,000 247 6.15%, 6/19/20 (10) 326 39 Mexico Government International Bond, 8.25%, 4/12/21 (4) (10) 593 71 2.66%, 5/24/31 453 427 6.10%, 10/4/22 (4) (10) 795 96 4.75%, 4/27/32 1,300 1,447 6.00%, 1/27/23 (4) (10) 231 28 6.05%, 1/11/40 60 72 6.60%, 11/27/26 (4) (10) 97 12 4.75%, 3/8/44 54 57 6.85%, 3/23/27 (4) (10) 212 26 5.55%, 1/21/45 114 131 7.00%, 3/23/32 (4) (10) 143 17 3.77%, 5/24/61 425 374 7.05%, 11/2/35 (4) (10) 11 1 3.75%, 4/19/71 400 347 7.25%, 3/23/37 (4) (10) 349 43 5.75%, 10/12/10 (12) 424 469 388 Petroleos Mexicanos, (4) 3,090 142 Malaysia–2.9% 7.19%, 9/12/24 (MXN) 6.75%, 9/21/47 476 408 Malaysia Government Bond, 6.35%, 2/12/48 160 133 3.80%, 9/30/22 (MYR) 5,321 1,317 7.69%, 1/23/50 371 346 3.90%, 11/30/26 (MYR) 2,050 521 6.95%, 1/28/60 438 378 3.73%, 6/15/28 (MYR) 2,400 602 3.89%, 8/15/29 (MYR) 720 181 11,308 2.63%, 4/15/31 (MYR) 3,065 699 Mongolia–0.3% 3.83%, 7/5/34 (MYR) 1,599 383 Development Bank of Mongolia LLC, 4.92%, 7/6/48 (MYR) 203 52 7.25%, 10/23/23 (4) 200 217 Petronas Capital Ltd., Mongolia Government International Bond, 4.55%, 4/21/50 (4) 200 237 5.63%, 5/1/23 (4) 200 209 4.80%, 4/21/60 (4) 200 252 Mongolian Mining Corp., (2) (3) 4,244 2.34%, 10/1/21 60 29 Mexico – 7.8% 455 Banco Mercantil del Norte S.A., Morocco – 0.2% (Variable, U.S. Treasury Yield Curve Morocco Government International Bond, Rate CMT 10Y + 7.76%), 8.38%, 4.25%, 12/11/22 (4) 210 220 10/14/30 (2) (4) (8) 220 256 Mozambique – 0.3% Braskem Idesa S.A.P.I., Mozambique International Bond, 7.45%, 11/15/29 (4) 230 228 (Step to 9.00% on 9/15/23), 5.00%, Comision Federal de Electricidad, 9/15/31 (4) (7) 500 413 8.18%, 12/23/27 (MXN) 2,060 96 Netherlands – 0.3% Mexican Bonos, Metinvest B.V., 8.00%, 12/7/23 (MXN) 14,000 731 7.65%, 10/1/27 (4) 200 216 10.00%, 12/5/24 (MXN) 12,900 722 7.75%, 10/17/29 (4) 200 213 5.75%, 3/5/26 (MXN) 8,970 436 429 7.50%, 6/3/27 (MXN) 23,420 1,221 8.50%, 5/31/29 (MXN) 12,234 672 Nigeria–0.4% 7.75%, 5/29/31 (MXN) 6,960 363 Nigeria Government International Bond, 7.75%, 11/23/34 (MXN) 2,910 150

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 55 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

MULTI-MANAGER EMERGING MARKETS DEBT OPPORTUNITY FUND continued

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S)(1) (000S) (000S)(1) (000S) FOREIGN ISSUER BONDS – 92.7% continued FOREIGN ISSUER BONDS – 92.7% continued Nigeria–0.4% continued Peru – 1.4% continued 7.70%, 2/23/38 (4) $400 $394 6.15%, 8/12/32 (PEN) $1,800 $521 7.63%, 11/28/47 (4) 200 194 5.40%, 8/12/34 (PEN) 565 147 588 5.35%, 8/12/40 (PEN) 1,076 261 Oman – 1.0% Peruvian Government International Bond, 118 146 Oman Government International Bond, 7.35%, 7/21/25 (4) 300 93 5.63%, 1/17/28 (4) 200 207 6.95%, 8/12/31 (PEN) 190 295 6.25%, 1/25/31 (4) 200 210 8.75%, 11/21/33 (4) 83 24 6.50%, 3/8/47 (4) 400 377 6.90%, 8/12/37 (PEN) 119 157 6.75%, 1/17/48 (4) 711 681 5.63%, 11/18/50 2.78%, 12/1/60 181 149 1,475 3.23%, 7/28/21 (14) 75 60 Pakistan – 1.1% Petroleos del Peru S.A., Pakistan Government International Bond, 5.63%, 6/19/47 (5) 200 210 8.25%, 4/15/24 (4) 200 220 2,063 6.88%, 12/5/27 (4) 281 294 4/8/31 (4) (13) 340 347 Philippines – 0.6% 4/8/31 (5) (13) 250 255 Philippine Government International Bond, 78 107 Third Pakistan International Sukuk (The) Co. 10.63%, 3/16/25 Ltd., 9.50%, 2/2/30 242 376 5.50%, 10/13/21 (4) 300 304 7.75%, 1/14/31 200 290 5.63%, 12/5/22 (4) 200 206 6.38%, 10/23/34 100 137 1,626 910 Panama–1.0% Poland–1.6% Panama Government International Bond, Republic of Poland Government Bond, 8.88%, 9/30/27 449 618 2.50%, 1/25/23 (PLN) 2,700 714 9.38%, 4/1/29 73 107 2.50%, 7/25/26 (PLN) 1,550 425 3.16%, 1/23/30 294 306 2.50%, 7/25/27 (PLN) 2,250 619 6.70%, 1/26/36 138 185 2.75%, 4/25/28 (PLN) 217 60 4.30%, 4/29/53 200 214 2.75%, 10/25/29 (PLN) 1,838 515 1,430 2,333 PapuaNewGuinea–0.1% Qatar – 2.3% Papua New Guinea Government Qatar Government International Bond, International Bond, 3.25%, 6/2/26 (4) 200 218 8.38%, 10/4/28 (4) 200 205 4.50%, 4/23/28 (4) 268 313 (4) Paraguay – 0.9% 4.00%, 3/14/29 450 512 (4) Paraguay Government International Bond, 3.75%, 4/16/30 596 667 (4) 5.00%, 4/15/26 (4) 200 226 5.10%, 4/23/48 625 792 (4) 4.95%, 4/28/31 (4) 399 451 4.82%, 3/14/49 622 764 5.60%, 3/13/48 (4) 400 454 3,266 (4) 5.40%, 3/30/50 200 225 Romania–2.0% 1,356 Romania Government Bond, Peru–1.4% 4.25%, 6/28/23 (RON) 850 211 Peru Government Bond, 5.80%, 7/26/27 (RON) 3,040 854

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 56 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S)(1) (000S) (000S)(1) (000S) FOREIGN ISSUER BONDS – 92.7% continued FOREIGN ISSUER BONDS – 92.7% continued Romania – 2.0% continued South Africa – 4.4% continued 4.15%, 10/24/30 (RON) $1,230 $317 10.50%, 12/21/26 (ZAR) $1,369 $105 Romanian Government International Bond, 8.00%, 1/31/30 (ZAR) 2,174 134 6.75%, 2/7/22 (4) 120 126 7.00%, 2/28/31 (ZAR) 2,855 158 4.38%, 8/22/23 (4) 186 202 8.25%, 3/31/32 (ZAR) 30,081 1,763 3.62%, 5/26/30 (EUR)(4) 67 90 8.88%, 2/28/35 (ZAR) 6,562 378 3.00%, 2/14/31 (4) 40 40 6.25%, 3/31/36 (ZAR) 3,865 173 6.13%, 1/22/44 (4) 24 31 8.50%, 1/31/37 (ZAR) 18,263 988 5.13%, 6/15/48 (4) 300 340 6.50%, 2/28/41 (ZAR) 1,752 74 3.38%, 1/28/50 (EUR)(4) 121 149 8.75%, 1/31/44 (ZAR) 1,848 98 4.00%, 2/14/51 (4) 528 513 8.75%, 2/28/48 (ZAR) 27,147 1,444 2,873 Republic of South Africa Government International Bond, Russia – 4.7% 4.30%, 10/12/28 540 531 Russian Federal Bond - OFZ, 5.00%, 10/12/46 200 172 7.00%, 8/16/23 (RUB) 85,800 1,164 5.65%, 9/27/47 200 184 7.75%, 9/16/26 (RUB) 27,969 389 5.75%, 9/30/49 200 184 7.95%, 10/7/26 (RUB) 30,571 428 8.15%, 2/3/27 (RUB) 58,765 833 6,386 7.05%, 1/19/28 (RUB) 15,962 214 Sri Lanka – 0.4% 6.90%, 5/23/29 (RUB) 37,529 496 Sri Lanka Government International Bond, (4) 7.65%, 4/10/30 (RUB) 30,948 429 6.75%, 4/18/28 471 286 (4) 8.50%, 9/17/31 (RUB) 30,427 448 7.85%, 3/14/29 200 121 (4) 7.70%, 3/23/33 (RUB) 24,731 345 7.55%, 3/28/30 200 122 7.25%, 5/10/34 (RUB) 5,593 75 529 7.70%, 3/16/39 (RUB) 11,000 155 Supranational – 0.3% Russian Federal Inflation Linked Bond, International Finance Corp., (6) 2.50%, 7/17/30 (RUB) 16,350 218 5.85%, 11/25/22 (INR) 30,000 413 Russian Foreign Bond - Eurobond, Thailand – 2.4% 4.25%, 6/23/27 (4) 400 439 Thailand Government Bond, 4.38%, 3/21/29 (4) 200 219 2.40%, 12/17/23 (THB) 34,400 1,155 5.10%, 3/28/35 (4) 600 693 2.88%, 12/17/28 (THB) 2,733 95 5.25%, 6/23/47 (4) 200 238 3.78%, 6/25/32 (THB) 17,458 655 6,783 3.40%, 6/17/36 (THB) 10,024 357 Saudi Arabia – 0.8% 3.30%, 6/17/38 (THB) 30,606 1,075 Saudi Government International Bond, 2.00%, 6/17/42 (THB) 2,650 75 4.38%, 4/16/29 (4) 300 343 2.88%, 6/17/46 (THB) 1,156 37 5.00%, 4/17/49 (4) 200 237 3.60%, 6/17/67 (THB) 1,084 39 (4) 5.25%, 1/16/50 200 246 3,488 3.75%, 1/21/55 (4) 200 196 Turkey–2.0% 3.45%, 2/2/61 (5) 200 184 Turkey Government Bond, 1,206 9.20%, 9/22/21 (TRY) 2,000 233 South Africa – 4.4% 12.60%, 10/1/25 (TRY) 1,470 147 Republic of South Africa Government Bond, 10.60%, 2/11/26 (TRY) 838 76

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 57 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

MULTI-MANAGER EMERGING MARKETS DEBT OPPORTUNITY FUND continued

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S)(1) (000S) (000S)(1) (000S) FOREIGN ISSUER BONDS – 92.7% continued FOREIGN ISSUER BONDS – 92.7% continued Turkey – 2.0% continued United Kingdom – 0.8% continued 11.00%, 2/24/27 (TRY) $2,139 $190 Vedanta Resources Finance II PLC, 11.70%, 11/13/30 (TRY) 1,520 130 13.88%, 1/21/24 (4) $200 $215 Turkey Government International Bond, 8.95%, 3/11/25 (5) 200 191 3.25%, 3/23/23 200 192 Vedanta Resources Ltd., 5.75%, 3/22/24 200 198 6.38%, 7/30/22 (4) 210 199 4.75%, 1/26/26 226 210 1,196 300 271 5.13%, 2/17/28 Uruguay – 1.2% 300 266 5.25%, 3/13/30 Uruguay Government International Bond, 205 185 5.88%, 6/26/31 8.50%, 3/15/28 (UYU)(4) 3,171 75 545 416 4.88%, 4/16/43 4.38%, 12/15/28 (UYU) 601 34 535 433 5.75%, 5/11/47 7.88%, 1/15/33 141 212 2,947 7.63%, 3/21/36 109 166 Ukraine – 3.0% 3.88%, 7/2/40 (UYU) 23,091 631 Ukraine Government Bond, 4.13%, 11/20/45 104 115 17.25%, 1/5/22 (UAH) 274 10 5.10%, 6/18/50 116 143 17.00%, 5/11/22 (UAH) 442 17 4.98%, 4/20/55 315 385 15.84%, 2/26/25 (UAH) 1,835 73 Uruguay Monetary Regulation Bill, Ukraine Government International Bond, 6.66%, 10/15/21 (UYU)(11) 545 12 16.00%, 8/11/21 (UAH)(5) 460 17 6.59%, 12/3/21 (UYU)(11) 366 8 7.75%, 9/1/21 (4) 100 102 6.76%, 3/2/22 (UYU)(11) 1,019 22 (4) 7.75%, 9/1/23 100 108 1,803 (4) 15,200 607 15.84%, 2/26/25 (UAH) Uzbekistan – 0.8% 7.75%, 9/1/25 (4) 165 180 Republic of Uzbekistan Bond, 7.75%, 9/1/26 (4) 330 359 14.50%, 11/25/23 (UZS)(4) 4,230,000 407 (4) 970 1,132 9.75%, 11/1/28 4.75%, 2/20/24 (4) 511 540 (4) 1,248 1,259 7.38%, 9/25/32 5.38%, 2/20/29 (4) 200 219 7.25%, 3/15/33 (4) 412 411 1,166 4,275 Venezuela – 0.4% United Arab Emirates – 1.1% Petroleos de Venezuela S.A., Abu Dhabi Government International Bond, 8.50%, 10/27/20 (4) (10) (15) 1,480 370 (4) 750 815 3.13%, 10/11/27 9.00%, 11/17/21 (4)(10)(15) 172 8 (4) 400 382 3.13%, 9/30/49 12.75%, 2/17/22 (4) (10) (15) 92 4 (4) 200 218 3.88%, 4/16/50 5.38%, 4/12/27 (4) (10) (15) 77 3 Emirate of Dubai Government International 9.75%, 5/17/35 (4) (10) (15) 222 10 Bonds, Venezuela Government International Bond, 5.25%, 1/30/43 (4) 200 217 7.75%, 10/13/19 (4) (10) (15) 72 7 1,632 12.75%, 8/23/22 (4) (10) (15) 151 16 United Kingdom – 0.8% 9.00%, 5/7/23 (4)(10)(15) 62 6 DTEK Finance PLC, 8.25%, 10/13/24 (4)(10)(15) 141 14 10.75%,(100% Cash), 12/31/24 11.75%, 10/21/26 (4) (10) (15) 632 64 (3) (4) (10) 162 134 9.25%, 9/15/27 (10) 186 19 Standard Chartered Bank, 19.25%, 1/20/27 (GHS)(4) (6) 2,600 457

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 58 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

PRINCIPAL (10) Issuer has defaulted on terms of debt obligation. Income is not being AMOUNT VALUE accrued. (000S)(1) (000S) (11) Discount rate at the time of purchase. FOREIGN ISSUER BONDS – 92.7% continued (12) Century bond maturing in 2110. (13) Venezuela – 0.4% continued When-Issued Security. Coupon rate is not in effect at March 31, 2021. (14) Century bond maturing in 2121. 9.25%, 5/7/28 (4)(10)(15) $102 $11 (15) Restricted security that has been deemed illiquid. At March 31, 2021, the (4)(10)(15) 11.95%, 8/5/31 1,045 107 value of these restricted illiquid securities amounted to approximately 639 $620,000 or 0.4% of net assets. Additional information on these restricted illiquid securities is as follows: Vietnam – 0.2% Vietnam Government International Bond, ACQUISITION AND 4.80%, 11/19/24 (4) 200 224 ENFORCEABLE COST Zambia – 0.6% SECURITY DATE (000S) Zambia Government International Bond, Petroleos de Venezuela S.A., 8.50%, 10/27/20 4/4/17-11/14/18 $1,199 5.38%, 9/20/22 (4) 1,250 703 8.97%, 7/30/27 (4) (10) 400 227 Petroleos de Venezuela S.A., 9.00%, 11 / 17 / 21 1/19/16-6/14/17 100 930 Petroleos de Venezuela S.A., 12.75%, Total Foreign Issuer Bonds 2/17/22 3/10/16-6/14/17 51 (Cost $142,459) 134,427 Petroleos de Venezuela S.A., 5.38%, 4/12/27 7/19/16-6/14/17 30 NUMBER VALUE OF SHARES (000S) Petroleos de Venezuela S.A., 9.75%, INVESTMENT COMPANIES – 3.9% 5/17/35 6/20/16-6/14/17 105 Northern Institutional Funds - Venezuela Government International U.S. Government Portfolio (Shares), Bond, 7.75%, 10/13/19 6/14/17-8/11/17 43 0.00%(16) (17) 5,681,033 $5,681 Venezuela Government International Total Investment Companies Bond, 12.75%, 8/23/22 4/29/16-7/27/18 49 (Cost $5,681) 5,681 Venezuela Government International Bond, 9.00%, 5/7/23 6/14/17-8/11/17 29

Total Investments – 98.4% Venezuela Government International Bond, 8.25%, 10/13/24 6/14/17-8/11/17 63 (Cost $150,685) 142,672 Venezuela Government International Other Assets less Liabilities – 1.6% 2,392 Bond, 11.75%, 10/21/26 3/3/17-11/13/17 333 Net Assets – 100.0% $145,064 Venezuela Government International Bond, 9.25%, 5/7/28 8/11/17-5/15/18 31 (1) Principal amount is in USD unless otherwise indicated. (2) Perpetual bond. Maturity date represents next call date. Venezuela Government International (3) Security is a payment in-kind bond (PIK), distributions received in-kind unless Bond, 11.95%, 8/5/31 3/3/17-7/27/18 480 otherwise noted in the description. (4) Security exempt from registration pursuant to Regulation S under the (16) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the Securities Act of 1933. Regulation S applies to securities offerings that are investment adviser to the Fund and the investment adviser to Northern made outside of the United States and do not involve direct selling efforts in Institutional Funds. the United States and as such may have restrictions on resale. (17) 7-day current yield as of March 31, 2021 is disclosed. (5) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from EXPLANATION OF ABBREVIATIONS AND ACRONYMS USED THROUGHOUT registration, normally to qualified institutional buyers. The value of these THE SCHEDULE OF INVESTMENTS: securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by 10Y – 10 Year the Board of Trustees of Northern Funds. (6) Level 3 asset. B.V. – Besloten Vennootschap (Dutch: Private Limited Liability Company) (7) Step coupon bond. Rate as of March 31, 2021 is disclosed. (8) Variable rate security. Security issued at a fixed coupon rate, which converts CETIP – Central of Custody and Financial Settlement of Securities to a variable rate at a future date. Rate shown is the rate in effect as of March 31, 2021. CFETS – China Foreign Exchange Trade System (9) Zero coupon bond. CMT – Constant Maturity

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 59 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

MULTI-MANAGER EMERGING MARKETS DEBT OPPORTUNITY FUND continued

LLC – Limited Liability Company At March 31, 2021, the Fund had outstanding forward foreign currency exchange contracts as follows: PLC – Public Limited Company CONTRACTS AMOUNT IN AMOUNT UNREALIZED TO (LOCAL EXCHANGE (LOCAL APPRECIATION S.A. – Société Anonyme (French: Public Limited Company) DELIVER CURRENCY) FOR CURRENCY) SETTLEMENT (DEPRECIATION) COUNTERPARTY CURRENCY (000S) CURRENCY (000S) DATE (000S) SBSN – Surat Berharga Syariah Negara Barclays United States Dollar 212 Brazilian Real 1,207 5/4/21 $ 2 BNP Chinese Offshore Yuan 1,429 United States Dollar 217 6/16/21 1 USD – United States Dollar BNP Colombian Peso 896,678 United States Dollar 250 4/30/21 5 BNP Czech Koruna 9,762 United States Dollar 443 4/30/21 5 BRL - Brazilian Real BNP Indonesian Rupiah 360,800 United States Dollar 25 4/30/21 —* BNP Polish Zloty 710 United States Dollar 183 4/30/21 3 CLP - Chilean Peso BNP Thai Baht 4,466 United States Dollar 145 4/30/21 2 BNP United States Dollar 142 Brazilian Real 814 4/5/21 2 CNH - Chinese Offshore Yuan BNP United States Dollar 61 Colombian Peso 224,745 4/30/21 —* CNY - Chinese Yuan Renminbi BNP United States Dollar 202 Indonesian Rupiah 2,949,400 4/16/21 —* BNP United States Dollar 282 Korean Won 320,475 5/12/21 2 COP - Colombian Peso BNP United States Dollar 10 Korean Won 10,922 6/16/21 —* Citibank Colombian Peso 343,847 United States Dollar 97 4/30/21 3 CZK - Czech Koruna Citibank Czech Koruna 612 United States Dollar 28 4/30/21 1 Citibank Hungarian Forint 9,610 United States Dollar 32 4/30/21 1 EGP - Egyptian Pound Citibank Indonesian Rupiah 2,949,400 United States Dollar 208 4/16/21 6 Citibank Romanian Leu 126 United States Dollar 30 4/29/21 —* EUR - Euro Citibank Romanian Leu 534 United States Dollar 130 5/28/21 3 Citibank Turkish Lira 461 United States Dollar 60 4/30/21 5 GHS - Ghanaian Cedi Citibank United States Dollar 273 Korean Won 309,552 6/16/21 2 HUF - Hungarian Forint Citibank United States Dollar 399 South African Rand 5,949 4/30/21 2 JPMorgan Chase Chilean Peso 328,476 United States Dollar 465 4/30/21 9 IDR - Indonesian Rupiah JPMorgan Chase Euro 767 United States Dollar 915 4/14/21 16 JPMorgan Chase Indonesian Rupiah 15,137,449 United States Dollar 1,054 4/30/21 19 INR - Indian Rupee JPMorgan Chase Russian Ruble 70,198 United States Dollar 937 4/30/21 12 JPMorgan Chase United States Dollar 299 Brazilian Real 1,690 4/5/21 1 MXN - Mexican Peso Merrill Lynch Czech Koruna 3,610 United States Dollar 163 5/28/21 —* Merrill Lynch Mexican Peso 2,885 United States Dollar 142 4/30/21 —* MYR - Malaysian Ringgit Merrill Lynch Peruvian Nuevo Sol 1,862 United States Dollar 510 4/30/21 13 PEN - Peruvian Nuevo Sol Merrill Lynch Romanian Leu 106 United States Dollar 26 4/29/21 1 Merrill Lynch United States Dollar 190 Mexican Peso 3,930 4/30/21 2 PLN - Polish Zloty Morgan Stanley Indonesian Rupiah 1,457,100 United States Dollar 100 4/30/21 —* Morgan Stanley South African Rand 1,683 United States Dollar 114 4/30/21 —* RON - Romanian Leu Morgan Stanley Turkish Lira 451 United States Dollar 61 4/30/21 8 Morgan Stanley United States Dollar 325 Chilean Peso 236,763 4/30/21 4 RUB - Russian Ruble Morgan Stanley United States Dollar 155 Peruvian Nuevo Sol 582 4/30/21 1 Morgan Stanley United States Dollar 171 Russian Ruble 13,068 4/30/21 1 THB - Thai Baht Morgan Stanley United States Dollar 486 South African Rand 7,294 4/30/21 7 Santander United States Dollar 927 Chilean Peso 670,939 4/30/21 4 TRY-TurkishLira Standard Chartered Bank Chinese Offshore Yuan 4,128 United States Dollar 630 6/16/21 5 UAH - Ukraine Hryvnia Standard Chartered Bank Czech Koruna 5,932 United States Dollar 270 4/30/21 3 Standard Chartered Bank Hungarian Forint 101,776 United States Dollar 331 4/30/21 2 UYU - Uruguayan Peso Standard Chartered Bank Indonesian Rupiah 378,800 United States Dollar 27 5/11/21 1 Standard Chartered Bank Malaysian Ringgit 999 United States Dollar 247 5/28/21 6 UZS - Uzbekistan Som Standard Chartered Bank Peruvian Nuevo Sol 103 United States Dollar 28 4/30/21 1 Standard Chartered Bank United States Dollar 128 South African Rand 1,905 4/30/21 1 ZAR - South African Rand Subtotal Appreciation 162 Percentages shown are based on Net Assets. Barclays Brazilian Real 1,207 United States Dollar 213 4/5/21 (2) Barclays Egyptian Pound 638 United States Dollar 39 6/28/21 (1) Barclays United States Dollar 190 Brazilian Real 1,030 4/5/21 (7)

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 60 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

CONTRACTS AMOUNT IN AMOUNT UNREALIZED CONTRACTS AMOUNT IN AMOUNT UNREALIZED TO (LOCAL EXCHANGE (LOCAL APPRECIATION TO (LOCAL EXCHANGE (LOCAL APPRECIATION DELIVER CURRENCY) FOR CURRENCY) SETTLEMENT (DEPRECIATION) DELIVER CURRENCY) FOR CURRENCY) SETTLEMENT (DEPRECIATION) COUNTERPARTY CURRENCY (000S) CURRENCY (000S) DATE (000S) COUNTERPARTY CURRENCY (000S) CURRENCY (000S) DATE (000S) Barclays United States Dollar 481 Hungarian Forint 142,159 5/28/21 $ (21) JPMorgan Chase United States Dollar 60 Philippine Peso 2,909 5/28/21 $ —* Barclays United States Dollar 430 Korean Won 481,770 4/12/21 (4) JPMorgan Chase United States Dollar 320 Polish Zloty 1,193 4/30/21 (18) Barclays United States Dollar 752 Russian Ruble 56,071 4/30/21 (12) JPMorgan Chase United States Dollar 104 Thai Baht 3,126 4/30/21 (4) Barclays United States Dollar 206 Turkish Lira 1,499 4/30/21 (28) Merrill Lynch Egyptian Pound 2,909 United States Dollar 179 6/29/21 (1) BNP Chinese Offshore Yuan 926 United States Dollar 140 6/16/21 —* Merrill Lynch Mexican Peso 16,303 United States Dollar 775 4/30/21 (21) BNP Indonesian Rupiah 2,949,400 United States Dollar 201 4/30/21 —* Merrill Lynch Thai Baht 1,563 United States Dollar 50 4/30/21 —* BNP Korean Won 320,475 United States Dollar 282 6/16/21 (2) Merrill Lynch United States Dollar 88 Indonesian Rupiah 1,280,000 4/30/21 (1) BNP Mexican Peso 9,078 United States Dollar 440 4/30/21 (3) Merrill Lynch United States Dollar 1,285 Russian Ruble 95,930 5/28/21 (25) Chinese Offshore Merrill Lynch United States Dollar 113 Turkish Lira 870 4/30/21 (10) BNP United States Dollar 3,114 Yuan 20,288 6/16/21 (42) Morgan Stanley Chilean Peso 36,025 United States Dollar 50 4/30/21 —* BNP United States Dollar 1,352 Czech Koruna 28,980 4/30/21 (49) Morgan Stanley United States Dollar 130 Polish Zloty 500 4/30/21 (3) BNP United States Dollar 286 Czech Koruna 6,346 6/30/21 (1) Morgan Stanley United States Dollar 1,088 Polish Zloty 4,258 6/30/21 (10) BNP United States Dollar 215 Euro 183 4/14/21 —* Santander Chilean Peso 27,731 United States Dollar 38 4/30/21 (1) BNP United States Dollar 404 Korean Won 454,657 4/30/21 (1) Santander Colombian Peso 224,165 United States Dollar 60 4/30/21 (1) BNP United States Dollar 91 Mexican Peso 1,847 4/30/21 (1) Standard Chartered Bank Brazilian Real 4,341 United States Dollar 755 4/5/21 (16) BNP United States Dollar 951 Polish Zloty 3,519 5/28/21 (60) Standard Chartered Bank Hungarian Forint 12,366 United States Dollar 40 4/30/21 —* BNP United States Dollar 362 Romanian Leu 1,461 5/28/21 (15) Standard Chartered Bank Korean Won 320,523 United States Dollar 281 4/12/21 (3) BNP United States Dollar 491 Thai Baht 14,790 5/28/21 (18) Standard Chartered Bank Korean Won 306,352 United States Dollar 269 4/30/21 (3) Citibank Korean Won 161,247 United States Dollar 142 4/12/21 (1) Standard Chartered Bank Korean Won 320,475 United States Dollar 281 5/12/21 (3) Citibank Korean Won 148,305 United States Dollar 131 4/30/21 (1) Standard Chartered Bank Mexican Peso 28,842 United States Dollar 1,390 4/30/21 (16) Citibank Russian Ruble 3,738 United States Dollar 49 4/30/21 —* Standard Chartered Bank Polish Zloty 317 United States Dollar 80 4/30/21 —* Citibank United States Dollar 30 Hungarian Forint 8,943 4/30/21 (1) Standard Chartered Bank South African Rand 5,770 United States Dollar 385 4/30/21 (5) Citibank United States Dollar 111 Indonesian Rupiah 1,594,298 4/30/21 (2) Standard Chartered Bank United States Dollar 710 Brazilian Real 3,928 4/5/21 (12) Citibank United States Dollar 2,352 Mexican Peso 47,425 4/30/21 (39) Standard Chartered Bank United States Dollar 362 Colombian Peso 1,281,320 4/30/21 (12) Citibank United States Dollar 479 Peruvian Nuevo Sol 1,741 4/30/21 (14) Standard Chartered Bank United States Dollar 40 Czech Koruna 869 4/30/21 (1) Citibank United States Dollar 126 Romanian Leu 517 4/29/21 (4) Standard Chartered Bank United States Dollar 813 Hungarian Forint 241,704 4/30/21 (31) JPMorgan Chase Brazilian Real 1,914 United States Dollar 340 4/5/21 — Standard Chartered Bank United States Dollar 56 Indonesian Rupiah 809,480 4/30/21 (1) JPMorgan Chase Brazilian Real 231 United States Dollar 40 5/4/21 (1) Standard Chartered Bank United States Dollar 24 Peruvian Nuevo Sol 88 4/30/21 —* JPMorgan Chase Chilean Peso 14,712 United States Dollar 20 4/30/21 —* Standard Chartered Bank United States Dollar 59 Russian Ruble 4,387 4/30/21 (1) JPMorgan Chase Mexican Peso 9,809 United States Dollar 475 4/30/21 (4) Standard Chartered Bank United States Dollar 492 Thai Baht 15,256 4/30/21 (4) JPMorgan Chase South African Rand 19,109 United States Dollar 1,252 4/30/21 (37) Subtotal Depreciation (600) JPMorgan Chase United States Dollar 453 Colombian Peso 1,617,654 4/30/21 (11) Total $(438) JPMorgan Chase United States Dollar 296 Czech Koruna 6,317 5/28/21 (12) JPMorgan Chase United States Dollar 323 Mexican Peso 6,566 4/30/21 (3) * Amount rounds to less than one thousand.

As of March 31, 2021, the Fund had the following bilateral interest rate swap agreements outstanding:

PREMIUMS UNREALIZED PAY RATE RECEIVE RATE/ PAID/ APPRECIATION INDEX/ RECEIVE RATE NOTIONAL NOTIONAL EXPIRATION VALUE (RECEIVED) (DEPRECIATION) COUNTERPARTY PAY RATE INDEX AMOUNT CURRENCY DATE (000S) (000S) (000S) BNP Kuala Lumpur Interbank Offered Rate 3 Month(1) 3.94%(1) 2,500,000 MYR 4/20/22 $14 $— $14 Total $14 (1) Payment frequency is quarterly.

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 61 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

MULTI-MANAGER EMERGING MARKETS DEBT OPPORTUNITY FUND continued

As of March 31, 2021, the Fund had the following centrally cleared interest rate swap agreements outstanding:

UNREALIZED PREMIUMS PAID/ APPRECIATION PAY RATE INDEX/ RECEIVE RATE/ NOTIONAL NOTIONAL EXPIRATION VALUE (RECEIVED) (DEPRECIATION) PAY RATE RECEIVERATEINDEX AMOUNT CURRENCY DATE (000S) (000S) (000S)(1) Brazil CETIP InterBank Deposit Rate(2) 6.68%(2) 7,216,791 BRL 1/2/25 $(34) $— $(34) CFETS China Fixing Repo Rates 7 Day(3) 2.65%(3) 4,500,000 CNY 12/16/25 (4) — (4) Brazil CETIP InterBank Deposit Rate(2) 5.92%(2) 3,020,269 BRL 1/2/25 (17) — (17) Brazil CETIP InterBank Deposit Rate(2) 6.22%(2) 2,346,520 BRL 1/2/25 (19) — (19) CFETS China Fixing Repo Rates 7 Day(3) 2.66%(3) 1,260,000 CNY 12/17/25 (1) — (1) Subtotal Depreciation (75)

Total $(75) (1) Includes cumulative appreciation/depreciation on centrally cleared swap agreements. Only the current day’s variation margin, if any, is reported within the Statements of Assets and Liabilities. (2) Payment Frequency is at maturity. (3) Payment frequency is quarterly.

At March 31, 2021, the industry sectors for the Fund were: At March 31, 2021, the Fund’s investments were denominated in the following currencies: %OFNET INDUSTRY SECTOR ASSETS %OFNET Basic Materials 3.1% CONCENTRATION BY CURRENCY ASSETS 57.2% Communications 1.7 United States Dollar 5.0 Energy 3.1 Indonesian Rupiah 36.2 Financial 5.3 All other currencies less than 5% 98.4 Government 80.9 Total Investments 1.6 Short-Term Investments 3.9 Other Assets less Liabilities 100.0% Utilities 0.4 Net Assets Total Investments 98.4 Other Assets less Liabilities 1.6 Net Assets 100.0%

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 62 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

Various inputs are used in determining the value of the Fund’s investments. These LEVEL 1 LEVEL 2 LEVEL 3 TOTAL inputs are summarized in three levels listed below: INVESTMENTS (000S) (000S) (000S) (000S) Level 1 - Unadjusted quoted market prices in active markets for identical securities OTHER FINANCIAL on the measurement date. INSTRUMENTS Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar Assets securities, securities valuations based on commonly quoted benchmark interest Forward Foreign Currency rates and yield curves, maturities, ratings and/or securities indices). Exchange Contracts $— $ 162 $— $ 162 Level 3 - Significant unobservable inputs (e.g., information about assumptions, Bilateral Interest Rate including risk, market participants would use in pricing a security). Swap Agreements —14—14 The inputs or methodologies used for valuing securities are not necessarily an Liabilities indication of the risk associated with investing in those securities and other Forward Foreign Currency financial instruments, if any. The following table summarizes the valuations of the Exchange Contracts — (600) — (600) Fund’s investments by the above fair value hierarchy as of March 31, 2021: Centrally Cleared Interest Rate Swap Agreements — (75) — (75) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL Total Other Financial INVESTMENTS (000S) (000S) (000S) (000S) Instruments $— $ (499)$— $ (499) Convertible Bonds $— $ 57 $— $ 57 (1) Classifications as defined in the Schedule of Investments. Corporate Bonds — 1,718 789 2,507 Foreign Issuer Bonds: Russia — 6,565 218 6,783 United Kingdom — 739 457 1,196 All Other Countries(1) — 126,448 — 126,448 Total Foreign Issuer Bonds — 133,752 675 134,427 Investment Companies 5,681 — — 5,681 Total Investments $5,681 $135,527 $1,464 $142,672

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) CHANGE IN FROM BALANCE ACCRUED REALIZED UNREALIZED TRANSFERS TRANSFERS BALANCE INVESTMENTS AS OF DISCOUNTS GAIN APPRECIATION INTO OUT OF AS OF STILL HELD 3/31/20 (PREMIUMS) (LOSS) (DEPRECIATION) PURCHASES SALES LEVEL 3 LEVEL 3 3/31/21 AT 3/31/21 (000S) (000S) (000S) (000S) (000S) (000S) (000S) (000S) (000S) (000S) Corporate Bonds $— $(1) $(3) $(15) $1,126 $(318) $— $— $789 $(15) Foreign Issuer Bonds Russia — 5 — (10) 223 — — — 218 (10) United Kingdom — — — 8 449 — — — 457 8 Total $— $4 $(3) $(17) $1,798 $(318) $— $— $1,464 $(17)

The Fund valued the securities included in the Balance as of 3/31/21 above using prices provided by a third party provider.

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 63 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S) (000S) (000S) (000S) CONVERTIBLE BONDS – 0.3% CORPORATE BONDS - 76.1% continued Cable & Satellite – 0.3% Airlines – 0.9% continued DISH Network Corp., 3.80%, 4/19/23 $50 $51 3.38%, 8/15/26 $546 $525 7.38%, 1/15/26 295 346 Wireless Telecommunications Services – 0.0% 3.75%, 10/28/29 25 25 Digicel Group 0.5 Ltd., United Airlines Holdings, Inc., 7.00%, 4/22/21(1) (2) (3) 8 5 4.25%, 10/1/22 125 127 Total Convertible Bonds 5.00%, 2/1/24 90 91 (Cost $460) 530 4.88%, 1/15/25 90 92 United Airlines Pass Through Trust, CORPORATE BONDS – 76.1% Series 2020-1, Class A, 5.88%, 10/15/27 24 27 Advertising & Marketing – 0.3% United Airlines Pass Through Trust, Outfront Media Capital LLC/Outfront Series 2020-1, Class B, Media Capital Corp., 4.88%, 1/15/26 160 166 5.00%, 8/15/27 (1) 355 359 4.25%, 1/15/29 (1) 25 24 1,517 4.63%, 3/15/30 (1) 105 101 Apparel & Textile Products – 0.0% Crocs, Inc., 484 4.25%, 3/15/29(1) 80 78 Aerospace & Defense – 2.0% Auto Parts Manufacturing – 1.0% Howmet Aerospace, Inc., Adient U.S. LLC, 5.90%, 2/1/27 25 28 9.00%, 4/15/25 (1) 75 83 5.95%, 2/1/37 100 121 American Axle & Manufacturing, Inc., Spirit AeroSystems, Inc., 6.88%, 7/1/28 125 131 5.50%, 1/15/25 (1) 25 27 7.50%, 4/15/25 (1) 230 247 Cooper-Standard Automotive, Inc., (1) 75 63 4.60%, 6/15/28 25 25 5.63%, 11/15/26 Dealer Tire LLC/DT Issuer LLC, TransDigm, Inc., 8.00%, 2/1/28 (1) 170 180 6.25%, 3/15/26 (1) 425 451 6.38%, 6/15/26 1,285 1,328 Goodyear Tire & Rubber (The) Co., 335 376 7.50%, 3/15/27 340 362 9.50%, 5/31/25 85 88 5.50%, 11/15/27 605 626 5.00%, 5/31/26 175 175 4.63%, 1/15/29 (1) 130 128 5.25%, 4/30/31 Triumph Group, Inc., Real Hero Merger Sub 2, Inc., (1) 490 506 8.88%, 6/1/24 (1) 25 28 6.25%, 2/1/29 6.25%, 9/15/24 (1) 25 25 Tenneco, Inc., 75 71 7.75%, 8/15/25 50 50 5.00%, 7/15/26 7.88%, 1/15/29 (1) 75 84 3,446 5.13%, 4/15/29 (1) 50 49 Airlines – 0.9% 1,806 American Airlines Group, Inc., Automobiles Manufacturing – 2.8% 5.00%, 6/1/22 (1) 225 221 3.75%, 3/1/25 (1) 260 222 Ford Motor Co., 200 223 American Airlines, Inc., 8.50%, 4/21/23 575 696 11.80%, 7/15/25 (1) 100 124 9.00%, 4/22/25 1,340 1,870 Delta Air Lines, Inc., 9.63%, 4/22/30 550 694 3.63%, 3/15/22 25 25 7.45%, 7/16/31

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 64 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S) (000S) (000S) (000S) CORPORATE BONDS - 76.1% continued CORPORATE BONDS - 76.1% continued Automobiles Manufacturing – 2.8% continued Casinos & Gaming – 2.3% 4.75%, 1/15/43 $240 $242 Affinity Gaming, 5.29%, 12/8/46 155 163 6.88%, 12/15/27 (1) $25 $26 Ford Motor Credit Co. LLC, Bally’s Corp., 5.13%, 6/16/25 315 340 6.75%, 6/1/27 (1) 25 27 5.11%, 5/3/29 605 648 Boyd Gaming Corp., Tesla, Inc., 8.63%, 6/1/25 (1) 25 28 5.30%, 8/15/25 (1) 75 78 6.38%, 4/1/26 275 284 4,954 Caesars Entertainment, Inc., (1) 175 186 Cable & Satellite – 2.4% 6.25%, 7/1/25 8.13%, 7/1/27 (1) 365 403 Cable One, Inc., Caesars Resort Collection LLC/CRC 4.00%, 11/15/30 (1) 25 25 Finco, Inc., CCO Holdings LLC/CCO Holdings (1) 25 26 Capital Corp., 5.75%, 7/1/25 5.25%, 10/15/25 (1) 320 323 5.75%, 2/15/26 (1) 87 90 4.75%, 3/1/30 (1) 155 161 Churchill Downs, Inc., (1) 300 314 4.50%, 8/15/30 (1) 130 132 5.50%, 4/1/27 (1) 25 26 4.25%, 2/1/31 (1) 150 150 4.75%, 1/15/28 4.50%, 5/1/32 (1) 150 152 Downstream Development Authority of the Quapaw Tribe of Oklahoma, CSC Holdings LLC, 10.50%, 2/15/23 (1) 75 78 7.50%, 4/1/28 (1) 520 573 Full House Resorts, Inc., 5.75%, 1/15/30 (1) 655 690 8.25%, 2/15/28 (1) 50 53 4.63%, 12/1/30 (1) 200 197 Golden Entertainment, Inc., DISH DBS Corp., 7.63%, 4/15/26 (1) 125 133 5.88%, 11/15/24 25 26 Inn of the Mountain Gods Resort & 7.38%, 7/1/28 230 241 Casino, GCI LLC, 9.25%, 11/30/23 (3) 59 58 4.75%, 10/15/28 (1) 25 26 Jacobs Entertainment, Inc., Midcontinent 7.88%, 2/1/24 (1) 75 78 Communications/Midcontinent MGM Resorts International, Finance Corp., 6.00%, 3/15/23 75 80 5.38%, 8/15/27 (1) 50 52 83 89 Radiate Holdco LLC/Radiate Finance, 5.50%, 4/15/27 Inc., Mohegan Gaming & Entertainment, (1) 6.50%, 9/15/28 (1) 310 327 7.88%, 10/15/24 100 104 (1) Sirius XM Radio, Inc., 8.00%, 2/1/26 100 101 4.63%, 7/15/24 (1) 50 52 Scientific Games International, Inc., (1) 5.38%, 7/15/26 (1) 560 578 5.00%, 10/15/25 105 109 (1) 5.00%, 8/1/27 (1) 165 173 8.25%, 3/15/26 120 129 (1) 5.50%, 7/1/29 (1) 428 463 7.00%, 5/15/28 400 427 (1) 4.13%, 7/1/30 (1) 77 77 7.25%, 11/15/29 50 54 Wynn Las Vegas LLC/Wynn Las Vegas 4,185 Capital Corp., 5.50%, 3/1/25 (1) 666 704 5.25%, 5/15/27 (1) 200 209

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 65 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S) (000S) (000S) (000S) CORPORATE BONDS - 76.1% continued CORPORATE BONDS - 76.1% continued Casinos & Gaming – 2.3% continued Commercial Finance – 0.3% Wynn Resorts Finance LLC/Wynn AerCap Global Aviation Trust, Resorts Capital Corp., (Variable, ICE LIBOR USD 3M + 5.13%, 10/1/29 (1) $25 $26 4.30%), 6.50%, 6/15/45 (1) (7) $294 $307 4,075 DAE Funding LLC, (1) 75 77 Chemicals – 0.9% 5.00%, 8/1/24 Fortress Transportation and Avient Corp., Infrastructure Investors LLC, 5.75%, 5/15/25 (1) 50 53 6.50%, 10/1/25 (1) 50 52 Cornerstone Chemical Co., 9.75%, 8/1/27 (1) 50 57 6.75%, 8/15/24 (1) 50 47 Oxford Finance LLC/Oxford Finance HB Fuller Co., Co-Issuer II, Inc., 4.25%, 10/15/28 130 132 6.38%, 12/15/22 (1) 50 51 Hexion, Inc., 544 7.88%, 7/15/27 (1) 170 183 Illuminate Buyer LLC/Illuminate Communications Equipment – 0.9% Holdings IV, Inc., CommScope Technologies LLC, (1) 9.00%, 7/1/28 (1) 90 101 6.00%, 6/15/25 242 247 (1) Innophos Holdings, Inc., 5.00%, 3/15/27 105 104 9.38%, 2/15/28 (1) 50 54 CommScope, Inc., (1) Iris Holdings, Inc., 8.25%, 3/1/27 265 283 (1) 8.75%, 2/15/26 (1) (3) 25 25 7.13%, 7/1/28 235 250 Kraton Polymers LLC/Kraton Polymers Viasat, Inc., Capital Corp., 5.63%, 9/15/25 (1) 570 579 4.25%, 12/15/25 (1) 25 25 6.50%, 7/15/28 (1) 150 158 Minerals Technologies, Inc., 1,621 (1) 25 26 5.00%, 7/1/28 Construction Materials Manufacturing – 0.2% Olin Corp., Advanced Drainage Systems, Inc., 9.50%, 6/1/25 (1) 50 62 5.00%, 9/30/27 (1) 25 26 100 108 5.63%, 8/1/29 Northwest Hardwoods, Inc., TPC Group, Inc., 7.50%, 8/1/21 (1) (4) (5) 25 7 (1) 150 136 10.50%, 8/1/24 NWH Escrow Corp., Tronox, Inc., 7.50%, 8/1/21 (1) (4) (5) 25 7 (1) 205 205 4.63%, 3/15/29 SRM Escrow Issuer LLC, Univar Solutions U.S.A., Inc., 6.00%, 11/1/28 (1) 75 79 (1) 275 286 5.13%, 12/1/27 Standard Industries, Inc., WR Grace & Co.-Conn, 5.00%, 2/15/27 (1) 25 26 (1) 50 52 4.88%, 6/15/27 Summit Materials LLC/Summit Materials 1,495 Finance Corp., (1) Coal Operations – 0.0% 5.25%, 1/15/29 100 105 Murray Energy Corp., U.S. Concrete, Inc., 12.00%, 4/15/24(1) (4) (5) (6) 486 — 6.38%, 6/1/24 48 49 5.13%, 3/1/29 (1) 25 26 325

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 66 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S) (000S) (000S) (000S) CORPORATE BONDS - 76.1% continued CORPORATE BONDS - 76.1% continued Consumer Finance – 0.9% Consumer Products – 0.4% continued Cardtronics, Inc./Cardtronics U.S.A., Edgewell Personal Care Co., Inc., 5.50%, 6/1/28 (1) $75 $79 (1) 5.50%, 5/1/25 $25 $26 4.13%, 4/1/29 (1) 50 50 FirstCash, Inc., Energizer Holdings, Inc., (1) 4.63%, 9/1/28 50 51 4.75%, 6/15/28 (1) 90 93 Freedom Mortgage Corp., 4.38%, 3/31/29 (1) 90 90 (1) 7.63%, 5/1/26 50 52 Kronos Acquisition Holdings, Inc./KIK Genworth Mortgage Holdings, Inc., Custom Products, Inc., 6.50%, 8/15/25 (1) 50 54 5.00%, 12/31/26 (1) 25 25 Ladder Capital Finance 7.00%, 12/31/27 (1) 25 24 Holdings LLLP/Ladder Capital Spectrum Brands, Inc., Finance Corp., 5.75%, 7/15/25 22 5.25%, 3/15/22 (1) 25 25 5.50%, 7/15/30 (1) 210 225 (1) 50 49 4.25%, 2/1/27 3.88%, 3/15/31 (1) 25 24 MGIC Investment Corp., 637 5.25%, 8/15/28 50 52 Consumer Services – 1.6% Nationstar Mortgage Holdings, Inc., Allied Universal Holdco LLC/Allied 6.00%, 1/15/27 (1) 25 26 Universal Finance Corp., 5.50%, 8/15/28 (1) 75 75 6.63%, 7/15/26 (1) 125 133 5.13%, 12/15/30 (1) 25 25 9.75%, 7/15/27 (1) 100 110 Navient Corp., AMN Healthcare, Inc., 5.50%, 1/25/23 25 26 4.00%, 4/15/29 (1) 50 50 6.13%, 3/25/24 125 132 APX Group, Inc., 6.75%, 6/25/25 200 217 7.63%, 9/1/23 105 108 6.75%, 6/15/26 50 54 6.75%, 2/15/27 (1) 217 233 5.00%, 3/15/27 25 25 Aramark Services, Inc., OneMain Finance Corp., 6.38%, 5/1/25 (1) 355 376 8.88%, 6/1/25 65 72 5.00%, 2/1/28 (1) 495 514 7.13%, 3/15/26 375 433 ASGN, Inc., 6.63%, 1/15/28 75 85 4.63%, 5/15/28 (1) 300 310 PennyMac Financial Services, Inc., Brink’s (The) Co., 4.25%, 2/15/29 (1) 50 48 5.50%, 7/15/25 (1) 25 26 PHH Mortgage Corp., Korn Ferry, 7.88%, 3/15/26 (1) 25 26 4.63%, 12/15/27 (1) 200 204 Provident Funding Associates L.P./PFG Legends Hospitality Holding Co. Finance Corp., LLC/Legends Hospitality Co-Issuer, (1) 50 50 6.38%, 6/15/25 Inc., United Wholesale Mortgage LLC, 5.00%, 2/1/26 (1) 25 25 5.50%, 4/15/29 (1) 50 50 Prime Security Services 1,653 Borrower LLC/Prime Finance, Inc., (1) Consumer Products – 0.4% 5.25%, 4/15/24 25 27 (1) Central Garden & Pet Co., 5.75%, 4/15/26 305 329 (1) 4.13%, 10/15/30 25 25 6.25%, 1/15/28 375 390

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 67 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S) (000S) (000S) (000S) CORPORATE BONDS - 76.1% continued CORPORATE BONDS - 76.1% continued Consumer Services – 1.6% continued Diversified Banks – 0.3% Rent-A-Center, Inc., Bank of America Corp., 6.38%, 2/15/29 $25 $26 (Variable, ICE LIBOR USD 3M + 3.71%), 6.25%, 9/5/24 (2) (7) $50 $55 2,861 (Variable, ICE LIBOR USD 3M + Containers & Packaging – 2.5% 2.93%), 5.88%, 3/15/28 (2) (7) 50 55 Graham Packaging Co., Inc., Citigroup, Inc., 7.13%, 8/15/28 (1) 190 202 (Variable, ICE LIBOR USD 3M + Greif, Inc., 4.07%), 5.95%, 1/30/23 (2) (7) 50 53 (1) 6.50%, 3/1/27 50 53 (Variable, U.S. SOFR + 3.23%), LABL Escrow Issuer LLC, 4.70%, 1/30/25 (2) (7) 125 126 6.75%, 7/15/26 (1) 280 300 JPMorgan Chase & Co., Mauser Packaging Solutions Holding (Variable, ICE LIBOR USD 3M + Co., 3.30%), 6.00%, 8/1/23 (2) (7) 125 131 7.25%, 4/15/25 (1) 370 370 (Variable, U.S. SOFR + 3.13%), Owens-Brockway Glass Container, Inc., 4.60%, 2/1/25 (2) (7) 25 25 6.63%, 5/13/27 (1) 25 27 445 Plastipak Holdings, Inc., Educational Services – 0.1% (1) 6.25%, 10/15/25 1,110 1,142 Adtalem Global Education, Inc., Reynolds Group Issuer, Inc./Reynolds 5.50%, 3/1/28 (1) 100 99 Group Issuer LLC/Reynolds Group Graham Holdings Co., Issuer (Luxembourg), 5.75%, 6/1/26 (1) 25 26 4.00%, 10/15/27 (1) 175 171 Sealed Air Corp., 125 4.00%, 12/1/27 (1) 25 26 Electrical Equipment Manufacturing – 0.2% Silgan Holdings, Inc., BWX Technologies, Inc., (1) (8) 4.13%, 2/1/28 25 26 4/15/29 25 25 Trident TPI Holdings, Inc., Vertical U.S. Newco, Inc., (1) 9.25%, 8/1/24 (1) 920 975 5.25%, 7/15/27 280 293 6.63%, 11/1/25 (1) 1,035 1,053 WESCO Distribution, Inc., (1) TriMas Corp., 7.13%, 6/15/25 50 55 (1) 4.13%, 4/15/29 (1) 50 50 7.25%, 6/15/28 25 28 4,395 401 Department Stores – 0.0% Entertainment Content – 0.7% Macy’s Retail Holdings LLC, Allen Media LLC/Allen Media Co-Issuer, Inc., 5.88%, 4/1/29(1) 50 51 10.50%, 2/15/28 (1) 25 26 Design, Manufacturing & Distribution – 0.0% AMC Networks, Inc., Brightstar Escrow Corp., 4.25%, 2/15/29 50 49 9.75%, 10/15/25(1) 25 27 Diamond Sports Group LLC/Diamond Distributors - Consumer Discretionary – 0.4% Sports Finance Co., IAA, Inc., 5.38%, 8/15/26 (1) 150 108 (1) 5.50%, 6/15/27 50 52 6.63%, 8/15/27 (1) 75 39 KAR Auction Services, Inc., Lions Gate Capital Holdings LLC, (1) 5.13%, 6/1/25 580 587 6.38%, 2/1/24 (1) 75 77 639 5.88%, 11/1/24 (1) 125 129

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 68 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S) (000S) (000S) (000S) CORPORATE BONDS - 76.1% continued CORPORATE BONDS - 76.1% continued Entertainment Content – 0.7% continued Entertainment Resources – 2.6% continued 4/15/29 (1) (8) $710 $710 Six Flags Entertainment Corp., Univision Communications, Inc., 5.50%, 4/15/27 (1) $155 $161 5.13%, 2/15/25 (1) 50 50 Six Flags Theme Parks, Inc., 9.50%, 5/1/25 (1) 50 55 7.00%, 7/1/25 (1) 95 103 6.63%, 6/1/27 (1) 25 27 Sterling Entertainment Group LLC, (9) 1,270 10.25%, 1/15/25 1,110 1,095 Entertainment Resources – 2.6% 4,568 AMC Entertainment Holdings, Inc., Exploration & Production – 4.6% 10.50%, 4/24/26 (1) 15 16 Aethon United BR L.P./Aethon United 12.00%, 6/15/26 (1) (3) 84 68 Finance Corp., (1) Boyne U.S.A., Inc., 8.25%, 2/15/26 50 52 7.25%, 5/1/25 50 52 Antero Resources Corp., Carlson Travel, Inc., 5.63%, 6/1/23 25 25 (1) 6.75%, 12/15/25 (1) 340 311 7.63%, 2/1/29 25 27 11.50%, 12/15/26 (1) (3) 936 711 Apache Corp., Cedar Fair L.P./Canada’s Wonderland 4.25%, 1/15/30 50 49 Co./Magnum Management Corp., 5.10%, 9/1/40 150 147 5.38%, 6/1/24 25 25 5.35%, 7/1/49 25 24 Cedar Fair L.P./Canada’s Wonderland Ascent Resources Utica Co./Magnum Management Holdings LLC/ARU Finance Corp., Corp./Millennium Op, 7.00%, 11/1/26 (1) 190 190 5.38%, 4/15/27 35 36 9.00%, 11/1/27 (1) 168 213 (1) 6.50%, 10/1/28 195 210 8.25%, 12/31/28 (1) 55 57 Cedar Fair L.P./Canada’s Wonderland Callon Petroleum Co., Co./Magnum Management 6.25%, 4/15/23 50 44 Corp./Millennium Operations LLC, 6.13%, 10/1/24 125 106 5.50%, 5/1/25 (1) 65 68 Centennial Resource Production LLC, Cinemark U.S.A., Inc., 5.38%, 1/15/26 (1) 100 88 4.88%, 6/1/23 100 99 Chaparral Energy, Inc., 5.88%, 3/15/26 (1) 105 107 9.00%, (100% Cash), 2/14/25 (1) (3) (4) (9) Constellation Merger Sub, Inc., 17 16 (1) 45 42 8.50%, 9/15/25 CNX Resources Corp., Life Time, Inc., 7.25%, 3/14/27 (1) 100 107 (1) 200 206 5.75%, 1/15/26 6.00%, 1/15/29 (1) 50 52 (1) 330 340 8.00%, 4/15/26 Comstock Resources, Inc., Live Nation Entertainment, Inc., 7.50%, 5/15/25 (1) 18 19 (1) 75 76 4.88%, 11/1/24 9.75%, 8/15/26 182 198 5.63%, 3/15/26 (1) 75 78 6.75%, 3/1/29 (1) 211 216 (1) 135 150 6.50%, 5/15/27 Continental Resources, Inc., (1) 245 247 4.75%, 10/15/27 4.50%, 4/15/23 66 (1) 25 25 3.75%, 1/15/28 5.75%, 1/15/31 (1) 50 56 SeaWorld Parks & Entertainment, Inc., CrownRock L.P./CrownRock Finance, (1) 9.50%, 8/1/25 315 342 Inc., 5.63%, 10/15/25 (1) 75 76

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 69 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S) (000S) (000S) (000S) CORPORATE BONDS - 76.1% continued CORPORATE BONDS - 76.1% continued Exploration & Production – 4.6% continued Exploration & Production – 4.6% continued Double Eagle III Midco 1 LLC/Double Occidental Petroleum Corp., Eagle Finance Corp., 3.50%, 6/15/25 $50 $49 (1) 7.75%, 12/15/25 $195 $208 8.00%, 7/15/25 25 29 Endeavor Energy Resources L.P./EER 5.88%, 9/1/25 50 53 Finance, Inc., 5.50%, 12/1/25 50 53 5.75%, 1/30/28 (1) 50 53 5.55%, 3/15/26 125 133 Energy Ventures Gom LLC/EnVen 3.40%, 4/15/26 195 187 Finance Corp., 3.20%, 8/15/26 25 24 11.00%, 2/15/23 (1) 580 567 8.50%, 7/15/27 50 59 EQT Corp., 6.38%, 9/1/28 75 82 7.63%, 2/1/25 25 29 8.88%, 7/15/30 450 567 3.90%, 10/1/27 75 77 6.13%, 1/1/31 25 28 5.00%, 1/15/29 210 225 7.50%, 5/1/31 155 180 8.50%, 2/1/30 25 32 7.88%, 9/15/31 90 106 Gulfport Energy Corp., 6.45%, 9/15/36 585 646 6.00%, 10/15/24 (5) 100 89 6.20%, 3/15/40 75 77 6.38%, 1/15/26 (5) 50 45 6.60%, 3/15/46 200 212 Hilcorp Energy I L.P./Hilcorp Finance Ovintiv, Inc., Co., 8.13%, 9/15/30 25 32 6.25%, 11/1/28 (1) 95 98 PDC Energy, Inc., 5.75%, 2/1/29 (1) 82 83 5.75%, 5/15/26 145 150 6.00%, 2/1/31 (1) 140 142 Range Resources Corp., Indigo Natural Resources LLC, 4.88%, 5/15/25 130 129 5.38%, 2/1/29 (1) 25 25 9.25%, 2/1/26 220 239 Laredo Petroleum, Inc., 8.25%, 1/15/29 (1) 105 112 9.50%, 1/15/25 75 72 SM Energy Co., Magnolia Oil & Gas Operating LLC/Magnolia Oil & Gas 5.63%, 6/1/25 85 79 Finance Corp., 6.63%, 1/15/27 75 69 6.00%, 8/1/26 (1) 75 78 Southwestern Energy Co., Matador Resources Co., 6.45%, 1/23/25 100 107 5.88%, 9/15/26 310 302 Talos Production, Inc., Moss Creek Resources Holdings, Inc., 12.00%, 1/15/26 (1) 50 49 7.50%, 1/15/26 (1) 25 20 Vine Energy Holdings LLC, 10.50%, 5/15/27 (1) 25 22 6.75%, 4/15/29 (1) (4) 235 235 Murphy Oil Corp., Vine Oil & Gas L.P./Vine Oil & Gas 6.88%, 8/15/24 25 26 Finance Corp., (1) 5.75%, 8/15/25 50 50 8.75%, 4/15/23 50 53 (1) 6.38%, 7/15/28 75 75 9.75%, 4/15/23 50 54 7.05%, 5/1/29 25 25 WPX Energy, Inc., 6.38%, 12/1/42 50 45 5.88%, 6/15/28 15 17 Northern Oil and Gas, Inc., 8,041 8.13%, 3/1/28 (1) 75 75

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 70 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S) (000S) (000S) (000S) CORPORATE BONDS - 76.1% continued CORPORATE BONDS - 76.1% continued Financial Services – 1.3% Food & Beverage – 1.1% continued AG Issuer LLC, Simmons Foods, Inc./Simmons 6.25%, 3/1/28 (1) $75 $79 Prepared Foods, Inc./Simmons Pet Compass Group Diversified Food, Inc./Simmons Feed, (1) Holdings LLC, 4.63%, 3/1/29 $265 $267 5.25%, 4/15/29 (1) 50 52 Triton Water Holdings, Inc., (1) Goldman Sachs Group (The), Inc., 6.25%, 4/1/29 50 51 (Variable, U.S. Treasury Yield Curve 1,880 Rate CMT 5Y + 3.22%), 4.95%, Forest & Paper Products Manufacturing – 0.0% 2/10/25 (2) (7) 50 53 Mercer International, Inc., Hunt Cos., Inc., 5.13%, 2/1/29(1) 25 26 6.25%, 2/15/26 (1) 75 77 Hardware – 0.4% Icahn Enterprises L.P./Icahn Enterprises Finance Corp., Dell International LLC/EMC Corp., (1) 6.75%, 2/1/24 50 51 7.13%, 6/15/24 75 77 4.75%, 9/15/24 175 182 Dell, Inc., 6.25%, 5/15/26 100 105 5.40%, 9/10/40 16 18 5.25%, 5/15/27 125 129 Diebold Nixdorf, Inc., 4.38%, 2/1/29 (1) 25 24 8.50%, 4/15/24 75 77 (1) LPL Holdings, Inc., 9.38%, 7/15/25 25 28 4.63%, 11/15/27 (1) 110 114 Everi Payments, Inc., (1) 4.00%, 3/15/29 (1) 105 106 7.50%, 12/15/25 40 42 NFP Corp., NCR Corp., (1) 7.00%, 5/15/25 (1) 25 27 5.75%, 9/1/27 100 106 (1) 6.88%, 8/15/28 (1) 1,195 1,241 5.00%, 10/1/28 50 50 4/15/29 (1) (8) 100 101 2,240 6.13%, 9/1/29 (1) 100 106 Food & Beverage – 1.1% TTM Technologies, Inc., Darling Ingredients, Inc., 4.00%, 3/1/29 (1) 50 49 5.25%, 4/15/27 (1) 50 52 Xerox Holdings Corp., Kraft Heinz Foods Co., 5.00%, 8/15/25 (1) 50 52 6.88%, 1/26/39 50 69 5.50%, 8/15/28 (1) 50 52 7.13%, 8/1/39 (1) 25 35 758 5.00%, 6/4/42 25 28 5.20%, 7/15/45 50 58 Health Care Facilities & Services – 6.4% 4.88%, 10/1/49 150 168 Acadia Healthcare Co., Inc., (1) Nathan’s Famous, Inc., 5.50%, 7/1/28 205 216 (1) 6.63%, 11/1/25 (1) 50 51 5.00%, 4/15/29 95 99 Pilgrim’s Pride Corp., Air Methods Corp., (1) 5.75%, 3/15/25 (1) 100 102 8.00%, 5/15/25 75 71 4/15/31 (1) (8) 170 169 Charles River Laboratories International, Inc., Post Holdings, Inc., 3.75%, 3/15/29 (1) 25 25 5.75%, 3/1/27 (1) 275 289 4.00%, 3/15/31 (1) 25 25 5.63%, 1/15/28 (1) 130 137 CHS/Community Health Systems, Inc., 4.63%, 4/15/30 (1) 200 201 8.13%, 6/30/24 (1) 264 276 4.50%, 9/15/31 (1) 205 203

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 71 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S) (000S) (000S) (000S) CORPORATE BONDS - 76.1% continued CORPORATE BONDS - 76.1% continued Health Care Facilities & Services – 6.4% continued Health Care Facilities & Services – 6.4% continued 6.63%, 2/15/25 (1) $160 $169 Tenet Healthcare Corp., 8.00%, 3/15/26 (1) 100 108 6.75%, 6/15/23 $170 $184 5.63%, 3/15/27 (1) 115 121 4.63%, 7/15/24 50 51 8.00%, 12/15/27 (1) 256 281 4.63%, 9/1/24 (1) 50 51 6.88%, 4/1/28 (1) 53 48 4.88%, 1/1/26 (1) 25 26 6.00%, 1/15/29 (1) 95 100 5.13%, 11/1/27 (1) 1,100 1,150 6.88%, 4/15/29 (1) 180 188 4.63%, 6/15/28 (1) 105 108 4.75%, 2/15/31 (1) 190 186 6.13%, 10/1/28 (1) 1,130 1,177 DaVita, Inc., 6.88%, 11/15/31 25 28 4.63%, 6/1/30 (1) 415 422 U.S. Acute Care Solutions LLC, 3.75%, 2/15/31 (1) 25 24 6.38%, 3/1/26 (1) 75 78 Encompass Health Corp., Vizient, Inc., 4.75%, 2/1/30 50 51 6.25%, 5/15/27 (1) 170 180 Envision Healthcare Corp., 11,163 (1) 2,390 1,769 8.75%, 10/15/26 Home & Office Products Manufacturing – 0.2% HCA, Inc., Newell Brands, Inc., 7.69%, 6/15/25 200 241 4.70%, 4/1/26 100 111 5.38%, 9/1/26 135 152 5.88%, 4/1/36 50 61 3.50%, 9/1/30 125 126 6.00%, 4/1/46 50 62 Jaguar Holding Co. II/PPD Scotts Miracle-Gro (The) Co., Development L.P., 4.00%, 4/1/31 (1) 50 49 5.00%, 6/15/28 (1) 865 901 Tempur Sealy International, Inc., Legacy LifePoint Health LLC, 4.00%, 4/15/29 (1) 50 50 6.75%, 4/15/25 (1) 50 53 333 LifePoint Health, Inc., 5.38%, 1/15/29 (1) 25 25 Home Improvement – 0.6% ModivCare, Inc., Apex Tool Group LLC/BC Mountain Finance, Inc., 5.88%, 11/15/25 (1) 25 26 9.00%, 2/15/23 (1) 335 335 Owens & Minor, Inc., Cornerstone Building Brands, Inc., 4.50%, 3/31/29 (1) 50 50 6.13%, 1/15/29 (1) 380 405 Prime Healthcare Services, Inc., CP Atlas Buyer, Inc., 7.25%, 11/1/25 (1) 50 53 7.00%, 12/1/28 (1) 25 26 RP Escrow Issuer LLC, Griffon Corp., 5.25%, 12/15/25 (1) 25 26 5.75%, 3/1/28 100 107 Select Medical Corp., JELD-WEN, Inc., 6.25%, 8/15/26 (1) 50 53 6.25%, 5/15/25 (1) 50 53 Surgery Center Holdings, Inc., Patrick Industries, Inc., 6.75%, 7/1/25 (1) 980 1,002 7.50%, 10/15/27 (1) 50 55 10.00%, 4/15/27 (1) 450 496 PGT Innovations, Inc., Syneos Health, Inc., 6.75%, 8/1/26 (1) 50 53 3.63%, 1/15/29 (1) 25 24 Werner FinCo L.P./Werner FinCo, Inc., Team Health Holdings, Inc., 8.75%, 7/15/25 (1) 75 78 6.38%, 2/1/25 (1) 820 723 1,112

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 72 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S) (000S) (000S) (000S) CORPORATE BONDS - 76.1% continued CORPORATE BONDS - 76.1% continued Homebuilders – 1.0% Industrial Other – 0.5% continued Adams Homes, Inc., Alta Equipment Group, Inc., 7.50%, 2/15/25 (1) $50 $52 4/15/26 (1) (8) $25 $25 Ashton Woods U.S.A. LLC/Ashton Arcosa, Inc., Woods Finance Co., 4.38%, 4/15/29 25 25 (1) 6.63%, 1/15/28 50 53 Brand Industrial Services, Inc., Beazer Homes U.S.A., Inc., 8.50%, 7/15/25 (1) 75 76 6.75%, 3/15/25 75 77 frontdoor, Inc., 7.25%, 10/15/29 50 55 6.75%, 8/15/26 (1) 105 112 Century Communities, Inc., H&E Equipment Services, Inc., 5.88%, 7/15/25 125 130 3.88%, 12/15/28 (1) 25 24 Forestar Group, Inc., Installed Building Products, Inc., (1) 8.00%, 4/15/24 50 52 5.75%, 2/1/28 (1) 75 78 (1) 5.00%, 3/1/28 75 78 NESCO Holdings II, Inc., KB Home, 4/15/29 (1) (8) 50 51 7.63%, 5/15/23 25 27 New Enterprise Stone & Lime Co., Inc., 6.88%, 6/15/27 25 29 6.25%, 3/15/26 (1) 25 26 Meritage Homes Corp., 9.75%, 7/15/28 (1) 50 56 6.00%, 6/1/25 75 84 Pike Corp., (8) 4/15/29 25 25 5.50%, 9/1/28 (1) 25 25 Picasso Finance Sub, Inc., PowerTeam Services LLC, (1) 6.13%, 6/15/25 21 22 9.03%, 12/4/25 (1) 25 28 Shea Homes L.P./Shea Homes Funding Resideo Funding, Inc., Corp., 6.13%, 11/1/26 (1) 32 34 (1) 175 178 4.75%, 2/15/28 VM Consolidated, Inc., 4.75%, 4/1/29 (1) 25 25 5.50%, 4/15/29 (1) 240 246 STL Holding Co. LLC, Wolverine Escrow LLC, 7.50%, 2/15/26 (1) 50 52 9.00%, 11/15/26 (1) 45 45 Taylor Morrison Communities, Inc., 963 5.88%, 6/15/27 (1) 70 77 Internet Media – 0.8% 5.75%, 1/15/28 (1) 170 187 Arches Buyer, Inc., 5.13%, 8/1/30 (1) 55 59 4.25%, 6/1/28 (1) 25 25 Tri Pointe Homes, Inc., Cars.com, Inc., 5.25%, 6/1/27 165 177 6.38%, 11/1/28 (1) 125 130 5.70%, 6/15/28 140 155 Endure Digital, Inc., Weekley Homes LLC/Weekley Finance (1) Corp., 6.00%, 2/15/29 285 278 4.88%, 9/15/28 (1) 50 51 Go Daddy Operating Co. LLC/GD Finance Co., Inc., Williams Scotsman International, Inc., 5.25%, 12/1/27 (1) 200 209 4.63%, 8/15/28 (1) 50 51 3.50%, 3/1/29 (1) 250 246 1,696 Match Group Holdings II LLC, Industrial Other – 0.5% 5.00%, 12/15/27 (1) 50 52 Ahern Rentals, Inc., 4.63%, 6/1/28 (1) 50 51 (1) 125 112 7.38%, 5/15/23 5.63%, 2/15/29 (1) 105 113

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 73 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S) (000S) (000S) (000S) CORPORATE BONDS - 76.1% continued CORPORATE BONDS - 76.1% continued Internet Media – 0.8% continued Machinery Manufacturing – 0.9% continued Netflix, Inc., SPX FLOW, Inc., 6.38%, 5/15/29 $50 $62 5.88%, 8/15/26 (1) $50 $52 5.38%, 11/15/29 (1) 25 30 Terex Corp., Uber Technologies, Inc., 5/15/29 (1) (8) 250 259 7.50%, 5/15/25 (1) 50 54 Titan International, Inc., 8.00%, 11/1/26 (1) 25 27 6.50%, 11/30/23 75 75 (1) 7.50%, 9/15/27 25 28 1,571 6.25%, 1/15/28 (1) 50 54 Managed Care – 3.8% 1,359 Centene Corp., Iron & Steel – 1.5% 4.25%, 12/15/27 75 79 Algoma Steel Parent S.C.A., 3.38%, 2/15/30 195 197 0.00%, 11/30/47 (4)(10)(11)(12) 49 — 3.00%, 10/15/30 75 75 Specialty Steel Supply, Inc., Molina Healthcare, Inc., 11.00%, 11/15/22 (1) (4) (9) 2,670 2,631 3.88%, 11/15/30 (1) 120 123 2,631 One Call Corp., (1) (3) (4) (9) 6,166 6,166 Leisure Products Manufacturing – 0.1% 8.75%, 7/1/24 Mattel, Inc., 6,640 6.75%, 12/31/25 (1) 15 16 Manufactured Goods – 1.1% 3.38%, 4/1/26 (1) 25 26 EnPro Industries, Inc., 3.75%, 4/1/29 (1) 25 25 5.75%, 10/15/26 50 53 Winnebago Industries, Inc., FXI Holdings, Inc., 6.25%, 7/15/28 (1) 75 80 7.88%, 11/1/24 (1) 50 51 (1) 147 12.30%, 11/15/26 123 141 Hillman Group (The), Inc., Life Insurance – 0.1% 6.38%, 7/15/22 (1) 25 25 Genworth Holdings, Inc., Material Sciences Corp., 4.90%, 8/15/23 125 123 9.75%, 1/9/24 (9) 1,532 1,509 Machinery Manufacturing – 0.9% Park-Ohio Industries, Inc., Amsted Industries, Inc., 6.63%, 4/15/27 75 76 5.63%, 7/1/27 (1) 50 53 GrafTech Finance, Inc., 1,855 4.63%, 12/15/28 (1) 25 25 Mass Merchants – 0.0% Granite U.S. Holdings Corp., 99 Escrow Issuer, Inc., (1) 11.00%, 10/1/27 (1) 100 113 7.50%, 1/15/26 25 24 Hillenbrand, Inc., Medical Equipment & Devices Manufacturing – 0.2% 3.75%, 3/1/31 50 49 Ortho-Clinical Diagnostics, JPW Industries Holding Corp., Inc./Ortho-Clinical Diagnostics S.A., (1) 9.00%, 10/1/24 (1) 860 864 7.38%, 6/1/25 112 120 (1) Manitowoc (The) Co., Inc., 7.25%, 2/1/28 198 217 9.00%, 4/1/26 (1) 50 54 337 MTS Systems Corp., Metals & Mining – 2.7% (1) 5.75%, 8/15/27 25 27 Allegheny Technologies, Inc., 7.88%, 8/15/23 110 119

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 74 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S) (000S) (000S) (000S) CORPORATE BONDS - 76.1% continued CORPORATE BONDS - 76.1% continued Metals & Mining – 2.7% continued Oil & Gas Services & Equipment – 0.6% continued 5.88%, 12/1/27 $320 $331 Basic Energy Services, Inc., Arconic Corp., 10.80%, 10/15/23 (1) $25 $5 6.00%, 5/15/25 (1) 25 27 Bristow Group, Inc., Big River Steel LLC/BRS Finance Corp., 6.88%, 3/1/28 (1) 75 75 6.63%, 1/31/29 (1) 760 828 ChampionX Corp., Carpenter Technology Corp., 6.38%, 5/1/26 50 52 6.38%, 7/15/28 75 81 Diamond Offshore Drilling, Inc., Century Aluminum Co., 3.45%, 11/1/23 (5) 25 4 12.00%, 7/1/25 (1) 830 892 7.88%, 8/15/25 (5) 50 9 Cleveland-Cliffs, Inc., 5.70%, 10/15/39 (5) 25 4 9.88%, 10/17/25 (1) 34 40 Exterran Energy Solutions L.P./EES 6.75%, 3/15/26 (1) 450 489 Finance Corp., 5.88%, 6/1/27 75 78 8.13%, 5/1/25 50 46 4.63%, 3/1/29 (1) 75 75 Global Marine, Inc., 4.88%, 3/1/31 (1) 50 49 7.00%, 6/1/28 25 13 Coeur Mining, Inc., Nabors Industries, Inc., 5.13%, 2/15/29 (1) 25 24 5.75%, 2/1/25 100 74 Compass Minerals International, Inc., Nine Energy Service, Inc., (1) 6.75%, 12/1/27 (1) 25 27 8.75%, 11/1/23 75 23 Freeport-McMoRan, Inc., SESI LLC, (1) (4) (5) 5.00%, 9/1/27 50 53 7.13%, 12/15/21 75 26 4.13%, 3/1/28 75 79 Solaris Midstream Holdings LLC, (1) (8) 4.38%, 8/1/28 25 27 4/1/26 180 184 4.25%, 3/1/30 185 197 U.S.A. Compression Partners L.P./U.S.A. Compression Finance 4.63%, 8/1/30 50 54 Corp., 5.40%, 11/14/34 120 143 6.88%, 4/1/26 140 144 5.45%, 3/15/43 90 108 6.88%, 9/1/27 135 139 Joseph T Ryerson & Son, Inc., 8.50%, 8/1/28 (1) 576 645 1,093 Kaiser Aluminum Corp., Pharmaceuticals – 0.2% 6.50%, 5/1/25 (1) 100 106 Bausch Health Americas, Inc., (1) Novelis Corp., 8.50%, 1/31/27 125 139 5.88%, 9/30/26 (1) 75 79 P&L Development LLC/PLD Finance Tms International Holding Corp., Corp., (1) 50 53 7.25%, 8/15/25 (1) 75 76 7.75%, 11/15/25 United States Steel Corp., Par Pharmaceutical, Inc., (1) 111 118 6.88%, 3/1/29 100 102 7.50%, 4/1/27 Prestige Brands, Inc., 4,729 5.13%, 1/15/28 (1) 25 26 Oil & Gas Services & Equipment – 0.6% 3.75%, 4/1/31 (1) 25 24 Archrock Partners L.P./Archrock Partners Finance Corp., 360 6.25%, 4/1/28 (1) 290 295

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 75 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S) (000S) (000S) (000S) CORPORATE BONDS - 76.1% continued CORPORATE BONDS - 76.1% continued Pipeline – 4.9% Pipeline – 4.9% continued Antero Midstream Partners L.P./Antero EQM Midstream Partners L.P., Midstream Finance Corp., 4.75%, 7/15/23 $26 $27 5.38%, 9/15/24 $640 $647 4.00%, 8/1/24 25 25 (1) 7.88%, 5/15/26 310 333 6.00%, 7/1/25 (1) 140 151 (1) 5.75%, 3/1/27 180 180 4.13%, 12/1/26 140 139 (1) 5.75%, 1/15/28 15 15 6.50%, 7/1/27 (1) 145 158 Blue Racer Midstream LLC/Blue Racer 5.50%, 7/15/28 275 289 Finance Corp., 4.50%, 1/15/29 (1) 105 102 (1) 100 108 7.63%, 12/15/25 4.75%, 1/15/31 (1) 80 78 Buckeye Partners L.P., Genesis Energy L.P./Genesis Energy 3.95%, 12/1/26 70 69 Finance Corp., (1) 4.50%, 3/1/28 150 150 6.50%, 10/1/25 125 123 5.85%, 11/15/43 155 151 6.25%, 5/15/26 200 191 Cheniere Energy Partners L.P., 8.00%, 1/15/27 75 76 4.50%, 10/1/29 270 281 7.75%, 2/1/28 50 50 (1) 4.00%, 3/1/31 100 102 Global Partners L.P./GLP Finance Cheniere Energy, Inc., Corp., 4.63%, 10/15/28 (1) 140 146 7.00%, 8/1/27 95 100 CNX Midstream Partners L.P./CNX 6.88%, 1/15/29 70 75 Midstream Finance Corp., Harvest Midstream I L.P., (1) 6.50%, 3/15/26 100 102 7.50%, 9/1/28 (1) 800 860 Crestwood Midstream Partners Hess Midstream Operations L.P., L.P./Crestwood Midstream Finance 5.63%, 2/15/26 (1) 75 77 Corp., 5.13%, 6/15/28 (1) 75 76 6.00%, 2/1/29 (1) 75 74 Holly Energy Partners L.P./Holly Energy DCP Midstream Operating L.P., Finance Corp., 25 27 5.38%, 7/15/25 5.00%, 2/1/28 (1) 25 25 125 133 5.13%, 5/15/29 New Fortress Energy, Inc., (Variable, ICE LIBOR USD 3M + 9/30/26 (1) (8) 450 453 3.85%), 5.85%, 5/21/43 (1) (7) 215 191 NGL Energy Operating LLC/NGL 195 195 5.60%, 4/1/44 Energy Finance Corp., Delek Logistics Partners L.P./Delek 7.50%, 2/1/26 (1) 100 103 Logistics Finance Corp., NuStar Logistics L.P., 6.75%, 5/15/25 25 25 6.00%, 6/1/26 25 27 Energy Transfer Operating L.P., PBF Logistics L.P./PBF Logistics Finance (Variable, ICE LIBOR USD 3M + Corp., 4.03%), 6.25%, 2/15/23 (2) (7) 75 61 6.88%, 5/15/23 100 100 EnLink Midstream LLC, Plains All American Pipeline L.P., 5.63%, 1/15/28 (1) 25 24 (Variable, ICE LIBOR USD 3M + 5.38%, 6/1/29 50 47 4.11%), 6.13%, 11/15/22 (2) (7) 150 122 EnLink Midstream Partners L.P., Rockies Express Pipeline LLC, 25 25 4.40%, 4/1/24 3.60%, 5/15/25 (1) 50 50 75 62 5.60%, 4/1/44 4.95%, 7/15/29 (1) 25 26 25 19 5.05%, 4/1/45 6.88%, 4/15/40 (1) 25 27 5.45%, 6/1/47 75 60

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 76 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S) (000S) (000S) (000S) CORPORATE BONDS - 76.1% continued CORPORATE BONDS - 76.1% continued Pipeline – 4.9% continued Power Generation – 1.1% continued Summit Midstream NRG Energy, Inc., Holdings LLC/Summit Midstream 7.25%, 5/15/26 $50 $52 Finance Corp., 6.63%, 1/15/27 50 52 $87 $84 5.50%, 8/15/22 3.63%, 2/15/31 (1) 280 273 138 112 5.75%, 4/15/25 TerraForm Power Operating LLC, Summit Midstream Partners L.P., 5.00%, 1/31/28 (1) 25 27 (Variable, ICE LIBOR USD 3M + 4.75%, 1/15/30 (1) 50 52 7.43%), 9.50%, 12/15/22 Vistra Operations Co. LLC, (2) (5) (7) 125 77 5.00%, 7/31/27 (1) 75 77 Tallgrass Energy Partners L.P./Tallgrass Energy Finance Corp., 1,993 5.50%, 9/15/24 (1) 51 52 Property & Casualty Insurance – 2.6% 7.50%, 10/1/25 (1) 125 135 Acrisure LLC/Acrisure Finance, Inc., 6.00%, 3/1/27 (1) 85 86 7.00%, 11/15/25 (1) 100 103 5.50%, 1/15/28 (1) 80 78 10.10%, 8/1/26 (1) 50 58 6.00%, 12/31/30 (1) 150 148 Alliant Holdings Targa Resources Partners L.P./Targa Intermediate LLC/Alliant Holdings Resources Partners Finance Corp., Co-Issuer, 5.88%, 4/15/26 50 52 6.75%, 10/15/27 (1) 315 338 5.00%, 1/15/28 100 104 AssuredPartners, Inc., 5.50%, 3/1/30 50 52 7.00%, 8/15/25 (1) 1,730 1,784 4.88%, 2/1/31 (1) 75 76 5.63%, 1/15/29 (1) 175 178 4.00%, 1/15/32 (1) 50 47 GTCR AP Finance, Inc., TransMontaigne Partners L.P./TLP 8.00%, 5/15/27 (1) 385 413 Finance Corp., HUB International Ltd., 6.13%, 2/15/26 25 25 7.00%, 5/1/26 (1) 1,420 1,475 Western Midstream Operating L.P., NMI Holdings, Inc., 4.00%, 7/1/22 25 26 7.38%, 6/1/25 (1) 25 29 3.95%, 6/1/25 25 26 Radian Group, Inc., 4.75%, 8/15/28 25 26 4.50%, 10/1/24 50 52 5.30%, 2/1/30 270 293 4.88%, 3/15/27 100 105 5.45%, 4/1/44 75 77 4,535 5.30%, 3/1/48 150 151 Publishing & Broadcasting – 0.9% 6.50%, 2/1/50 55 Clear Channel Outdoor Holdings, Inc., 8,489 7.75%, 4/15/28 (1) 235 233 Power Generation – 1.1% Clear Channel Worldwide Holdings, Calpine Corp., Inc., 4.50%, 2/15/28 (1) 205 207 9.25%, 2/15/24 22 23 5.13%, 3/15/28 205 206 5.13%, 8/15/27 (1) 75 75 4.63%, 2/1/29 (1) 513 500 Entercom Media Corp., 5.00%, 2/1/31 (1) 429 418 6.75%, 3/31/29 (1) 25 26 Clearway Energy Operating LLC, Gray Television, Inc., 5.00%, 9/15/26 100 103 5.88%, 7/15/26 (1) 25 26 4.75%, 3/15/28 (1) 25 26 4.75%, 10/15/30 (1) 75 74

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 77 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S) (000S) (000S) (000S) CORPORATE BONDS - 76.1% continued CORPORATE BONDS - 76.1% continued Publishing & Broadcasting – 0.9% continued Real Estate – 4.1% continued iHeartCommunications, Inc., 4.63%, 10/1/27 (1) $260 $275 6.38%, 5/1/26 $27 $28 FelCor Lodging L.P., 5.25%, 8/15/27 (1) 50 51 6.00%, 6/1/25 100 103 4.75%, 1/15/28 (1) 25 25 Five Point Operating Co. L.P./Five Point Lamar Media Corp., Capital Corp., (1) 4.00%, 2/15/30 75 75 7.88%, 11/15/25 50 52 Nexstar Broadcasting, Inc., GEO Group (The), Inc., 4.75%, 11/1/28 (1) 75 76 6.00%, 4/15/26 25 18 Salem Media Group, Inc., Greystar Real Estate Partners LLC, (1) 6.75%, 6/1/24 (1) 25 25 5.75%, 12/1/25 50 51 Scripps Escrow II, Inc., HAT Holdings I LLC/HAT Holdings II LLC, 3.88%, 1/15/29 (1) 25 25 (1) 75 77 5.38%, 1/15/31 (1) 405 403 5.25%, 7/15/24 (1) 25 24 Scripps Escrow, Inc., 3.75%, 9/15/30 Howard Hughes (The) Corp., 5.88%, 7/15/27 (1) 25 26 (1) 50 53 Sinclair Television Group, Inc., 5.38%, 8/1/28 4.13%, 2/1/29 (1) 50 49 5.13%, 2/15/27 (1) 50 49 5.50%, 3/1/30 (1) 25 24 Iron Mountain, Inc., (1) 250 256 4.13%, 12/1/30 (1) 50 48 4.88%, 9/15/27 (1) 180 187 Spanish Broadcasting System, Inc., 5.25%, 3/15/28 5.00%, 7/15/28 (1) 135 138 9.75%, 3/1/26 (1) 25 25 (1) 355 359 TEGNA, Inc., 4.88%, 9/15/29 5.25%, 7/15/30 (1) 295 304 4.63%, 3/15/28 75 76 4.50%, 2/15/31 (1) 25 25 5.00%, 9/15/29 75 78 5.63%, 7/15/32 (1) 240 251 Townsquare Media, Inc., Newmark Group, Inc., 6.88%, 2/1/26 (1) 25 27 6.13%, 11/15/23 75 82 1,518 Park Intermediate Holdings LLC/PK Railroad–0.1% Domestic Property LLC/PK Finance Watco Cos. LLC/Watco Finance Corp., Co-Issuer, 6.50%, 6/15/27(1) 165 174 7.50%, 6/1/25 (1) 170 186 Real Estate – 4.1% 5.88%, 10/1/28 (1) 140 148 Cushman & Wakefield U.S. Borrower Realogy Group LLC/Realogy Co-Issuer LLC, Corp., 6.75%, 5/15/28 (1) 25 27 4.88%, 6/1/23 (1) 95 98 Diversified Healthcare Trust, 7.63%, 6/15/25 (1) 250 273 9.75%, 6/15/25 75 85 9.38%, 4/1/27 (1) 450 498 4.38%, 3/1/31 75 73 5.75%, 1/15/29 (1) 529 522 EPR Properties, RHP Hotel Properties L.P./RHP Finance 4.50%, 6/1/27 110 113 Corp., 4.95%, 4/15/28 60 62 4.75%, 10/15/27 275 281 (1) 3.75%, 8/15/29 80 76 4.50%, 2/15/29 25 25 ESH Hospitality, Inc., Service Properties Trust, 5.25%, 5/1/25 (1) 450 459 5.00%, 8/15/22 25 25

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 78 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S) (000S) (000S) (000S) CORPORATE BONDS - 76.1% continued CORPORATE BONDS - 76.1% continued Real Estate – 4.1% continued Restaurants – 0.2% continued 4.35%, 10/1/24 $25 $25 8.75%, 10/1/25 (1) $50 $53 7.50%, 9/15/25 25 28 IRB Holding Corp., 5.25%, 2/15/26 50 50 7.00%, 6/15/25 (1) 25 27 4.95%, 2/15/27 25 25 6.75%, 2/15/26 (1) 50 52 4.95%, 10/1/29 175 167 Sizzling Platter LLC/Sizzling Platter Uniti Group L.P./Uniti Fiber Holdings, Finance Corp., Inc./CSL Capital LLC, 8.50%, 11/28/25 (1) 75 74 (1) 7.13%, 12/15/24 180 185 357 7.88%, 2/15/25 (1) 585 633 Retail - Consumer Discretionary – 2.9% Uniti Group L.P./Uniti Group Finance, Abercrombie & Fitch Management Co., Inc./CSL Capital LLC, 8.75%, 7/15/25 (1) 25 28 6.00%, 4/15/23 (1) 220 224 Asbury Automotive Group, Inc., 6.50%, 2/15/29 (1) 400 398 4.50%, 3/1/28 38 39 VICI Properties L.P./VICI Note Co., Inc., 4.75%, 3/1/30 25 26 4.25%, 12/1/26 (1) 50 51 Avis Budget Car Rental LLC/Avis 3.75%, 2/15/27 (1) 25 25 Budget Finance, Inc., XHR L.P., 5.25%, 3/15/25 (1) 85 86 (1) 50 53 6.38%, 8/15/25 4.75%, 4/1/28 (1) 115 117 7,119 5.38%, 3/1/29 (1) 175 181 Refining & Marketing – 0.3% BCPE Ulysses Intermediate, Inc., Calumet Specialty Products Partners 7.75%, 4/1/27 (1) (3) 25 26 L.P./Calumet Finance Corp., Beacon Roofing Supply, Inc., (1) 11.00%, 4/15/25 40 42 4.88%, 11/1/25 (1) 465 475 Citgo Holding, Inc., 4.50%, 11/15/26 (1) 25 26 (1) 9.25%, 8/1/24 125 124 Builders FirstSource, Inc., CITGO Petroleum Corp., 6.75%, 6/1/27 (1) 101 108 (1) 7.00%, 6/15/25 25 26 5.00%, 3/1/30 (1) 25 26 (1) 6.38%, 6/15/26 75 76 Burlington Coat Factory Warehouse Murphy Oil U.S.A., Inc., Corp., 4.75%, 9/15/29 50 52 6.25%, 4/15/25 (1) 25 26 PBF Holding Co. LLC/PBF Finance Carvana Co., Corp., 5.50%, 4/15/27 (1) 145 146 (1) 9.25%, 5/15/25 25 25 Foundation Building Materials, Inc., 6.00%, 2/15/28 50 37 6.00%, 3/1/29 (1) 25 25 Sunoco L.P./Sunoco Finance Corp., Gap (The), Inc., 6.00%, 4/15/27 75 79 8.63%, 5/15/25 (1) 75 84 461 Hertz (The) Corp., (1) (5) Renewable Energy – 0.1% 5.50%, 10/15/24 125 124 (1) (4) (5) EnerSys, 6.00%, 1/15/28 50 50 4.38%, 12/15/27(1) 95 97 KenGarffAutomotiveLLC, (1) 25 25 Restaurants – 0.2% 4.88%, 9/15/28 L Brands, Inc., Golden Nugget, Inc., 6.88%, 7/1/25 (1) 25 28 6.75%, 10/15/24 (1) 150 151 9.38%, 7/1/25 (1) 25 31

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 79 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S) (000S) (000S) (000S) CORPORATE BONDS - 76.1% continued CORPORATE BONDS - 76.1% continued Retail - Consumer Discretionary – 2.9% continued Retail - Consumer Staples – 0.5% 5.25%, 2/1/28 $80 $86 C&S Group Enterprises LLC, 7.50%, 6/15/29 50 57 5.00%, 12/15/28 (1) $25 $24 6.63%, 10/1/30 (1) 215 244 Performance Food Group, Inc., 6.88%, 11/1/35 25 30 6.88%, 5/1/25 (1) 60 64 6.75%, 7/1/36 100 118 5.50%, 10/15/27 (1) 405 423 LBM Acquisition LLC, U.S. Foods, Inc., 6.25%, 1/15/29 (1) 25 26 6.25%, 4/15/25 (1) 175 188 Lithia Motors, Inc., 4.75%, 2/15/29 (1) 220 220 4.63%, 12/15/27 (1) 25 26 United Natural Foods, Inc., 4.38%, 1/15/31 (1) 25 26 6.75%, 10/15/28 (1) 25 27 LSF9 Atlantis Holdings LLC/Victra 946 Finance Corp., Semiconductors – 0.2% 7.75%, 2/15/26 (1) 50 51 Amkor Technology, Inc., Michaels Stores, Inc., 6.63%, 9/15/27 (1) 50 54 8.00%, 7/15/27 (1) 25 28 Entegris, Inc., 4.75%, 10/1/27 (1) 50 54 4.63%, 2/10/26 (1) 25 26 Midas Intermediate Holdco ON Semiconductor Corp., II LLC/Midas Intermediate Holdco II (1) Finance, Inc., 3.88%, 9/1/28 180 185 7.88%, 10/1/22 (1) 115 113 Synaptics, Inc., (1) Park River Holdings, Inc., 4.00%, 6/15/29 50 50 5.63%, 2/1/29 (1) 25 24 315 Party City Holdings, Inc., Software & Services – 2.7% 8.75%, 2/15/26 (1) 50 51 Ascend Learning LLC, PetSmart, Inc./PetSmart Finance Corp., 6.88%, 8/1/25 (1) 50 51 4.75%, 2/15/28 (1) 90 92 Banff Merger Sub, Inc., 7.75%, 2/15/29 (1) 100 109 9.75%, 9/1/26 (1) 125 133 QVC, Inc., Boxer Parent Co., Inc., 4.75%, 2/15/27 50 52 7.13%, 10/2/25 (1) 25 27 Sonic Automotive, Inc., 9.13%, 3/1/26 (1) 25 27 6.13%, 3/15/27 75 78 BY Crown Parent LLC, Specialty Building Products 7.38%, 10/15/24 (1) 50 51 Holdings LLC/SBP Finance Corp., Castle U.S. Holding Corp., (1) 6.38%, 9/30/26 640 661 9.50%, 2/15/28 (1) 100 102 SRS Distribution, Inc., Crowdstrike Holdings, Inc., (1) 8.25%, 7/1/26 290 305 3.00%, 2/15/29 25 24 Staples, Inc., Dun & Bradstreet (The) Corp., (1) 7.50%, 4/15/26 315 332 10.30%, 2/15/27 (1) 75 84 (1) 10.80%, 4/15/27 100 99 Exela Intermediate LLC/Exela Finance, White Cap Buyer LLC, Inc., 6.88%, 10/15/28 (1) 745 791 10.00%, 7/15/23 (1) 125 45 5,130 J2 Global, Inc., 4.63%, 10/15/30 (1) 395 400

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 80 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S) (000S) (000S) (000S) CORPORATE BONDS - 76.1% continued CORPORATE BONDS - 76.1% continued Software & Services – 2.7% continued Software & Services – 2.7% continued LogMeIn, Inc, ZoomInfo Technologies LLC/ZoomInfo 5.50%, 9/1/27 (1) $75 $78 Finance Corp., (1) MPH Acquisition Holdings LLC, 3.88%, 2/1/29 $55 $54 5.75%, 11/1/28 (1) 370 363 4,703 Nielsen Finance LLC/Nielsen Finance Supermarkets & Pharmacies – 0.2% Co., Albertsons Cos., Inc./Safeway, (1) 5.63%, 10/1/28 320 336 Inc./New Albertsons 5.88%, 10/1/30 (1) 475 513 L.P./Albertsons LLC, Open Text Holdings, Inc., 5.75%, 3/15/25 55 4.13%, 2/15/30 (1) 75 76 4.63%, 1/15/27 (1) 50 52 Playtika Holding Corp., 3.50%, 3/15/29 (1) 25 24 4.25%, 3/15/29 (1) 271 267 Rite Aid Corp., Presidio Holdings, Inc., 7.50%, 7/1/25 (1) 34 35 8.25%, 2/1/28 (1) 390 424 8.00%, 11/15/26 (1) 52 54 Rackspace Technology Global, Inc., SEG Holding LLC/SEG Finance Corp., 5.38%, 12/1/28 (1) 175 178 5.63%, 10/15/28 (1) 100 105 Rocket Software, Inc., 275 (1) 25 25 6.50%, 2/15/29 Tobacco – 0.1% Sabre GLBL, Inc., Turning Point Brands, Inc., 9.25%, 4/15/25 (1) 50 60 5.63%, 2/15/26 (1) 25 26 Science Applications International Vector Group Ltd., Corp., 10.50%, 11/1/26 (1) 25 27 4.88%, 4/1/28 (1) 50 52 5.75%, 2/1/29 (1) 75 77 Shift4 Payments LLC/Shift4 Payments Finance Sub, Inc., 130 4.63%, 11/1/26 (1) 25 26 Transportation & Logistics – 0.2% Solera LLC/Solera Finance, Inc., Cargo Aircraft Management, Inc., 10.50%, 3/1/24 (1) 275 284 4.75%, 2/1/28 (1) 25 26 SS&C Technologies, Inc., Navistar International Corp., 5.50%, 9/30/27 (1) 355 378 9.50%, 5/1/25 (1) 75 82 Tempo Acquisition LLC/Tempo 6.63%, 11/1/25 (1) 50 52 Acquisition Finance Corp., Wabash National Corp., 6.75%, 6/1/25 (1) 327 334 5.50%, 10/1/25 (1) 50 51 Twilio, Inc., Western Global Airlines LLC, 3.88%, 3/15/31 25 26 10.40%, 8/15/25 (1) 50 56 Vericast Corp., XPO Logistics, Inc., 8.38%, 8/15/22 (1) 75 76 6.13%, 9/1/23 (1) 25 26 Veritas U.S., Inc./Veritas Bermuda Ltd., 6.25%, 5/1/25 (1) 25 27 (1) 7.50%, 9/1/25 175 182 320 Verscend Escrow Corp., Travel & Lodging – 0.4% 9.75%, 8/15/26 (1) 25 27 Arrow Bidco LLC, 9.50%, 3/15/24 (1) 25 25 Hilton Domestic Operating Co., Inc., 5.75%, 5/1/28 (1) 50 54

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 81 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S) (000S) (000S) (000S) CORPORATE BONDS - 76.1% continued CORPORATE BONDS - 76.1% continued Travel & Lodging – 0.4% continued Wireless Telecommunications Services – 0.8% 3.63%, 2/15/32 (1) $75 $73 Hughes Satellite Systems Corp., Marriott Ownership Resorts, Inc., 6.63%, 8/1/26 $100 $111 4.75%, 1/15/28 25 25 Sprint Capital Corp., Travel + Leisure Co., 6.88%, 11/15/28 130 164 6.63%, 7/31/26 (1) 75 85 8.75%, 3/15/32 265 392 4.63%, 3/1/30 (1) 25 26 Sprint Communications, Inc., Wyndham Hotels & Resorts, Inc., 9.25%, 4/15/22 25 27 5.38%, 4/15/26 (1) 105 107 Sprint Corp., 4.38%, 8/15/28 (1) 220 223 7.88%, 9/15/23 25 29 618 7.13%, 6/15/24 50 57 255 312 Utilities – 0.5% 7.63%, 3/1/26 AmeriGas Partners L.P./AmeriGas T-Mobile U.S.A., Inc., Finance Corp., 6.00%, 4/15/24 75 75 5.50%, 5/20/25 75 82 2.63%, 4/15/26 50 51 5.75%, 5/20/27 25 27 2.63%, 2/15/29 110 107 Ferrellgas Escrow LLC/FG Operating 2.88%, 2/15/31 90 87 Finance Escrow Corp., 1,412 5.38%, 4/1/26 (1) 75 75 Wireline Telecommunications Services – 1.3% 5.88%, 4/1/29 (1) 75 74 Consolidated Communications, Inc., Ferrellgas L.P./Ferrellgas Finance Corp., 5.00%, 10/1/28 (1) 25 25 50 50 6.50%, 5/1/21 6.50%, 10/1/28 (1) 25 27 25 25 6.75%, 6/15/23 Embarq Corp., Ferrellgas Partners L.P./Ferrellgas 8.00%, 6/1/36 125 144 Partners Finance Corp., Frontier Communications Corp., 8.63%, 6/15/20 (5) 50 37 10.50%, 9/15/22 (5) 170 116 FirstEnergy Corp., 5.88%, 10/15/27 (1) 185 196 5.35%, 7/15/47 250 281 5.00%, 5/1/28 (1) 145 148 NextEra Energy Operating Partners L.P., 6.75%, 5/1/29 (1) 95 100 3.88%, 10/15/26 (1) 50 52 GTT Communications, Inc., Talen Energy Supply LLC, 7.88%, 12/31/24 (1) (4) 1,650 272 10.50%, 1/15/26 (1) 120 107 HC2 Holdings, Inc., 7.25%, 5/15/27 (1) 40 41 8.50%, 2/1/26 (1) 25 25 6.63%, 1/15/28 (1) 50 50 Level 3 Financing, Inc., 7.63%, 6/1/28 (1) 35 35 5.38%, 5/1/25 25 25 936 4.63%, 9/15/27 (1) 260 268 Waste & Environment Services & Equipment – 0.2% 4.25%, 7/1/28 (1) 50 51 Covanta Holding Corp., 3.75%, 7/15/29 (1) 115 113 5.00%, 9/1/30 50 51 Lumen Technologies, Inc., Harsco Corp., 5.80%, 3/15/22 100 103 (1) 5.75%, 7/31/27 260 266 6.75%, 12/1/23 25 28 317 7.50%, 4/1/24 25 28 4.50%, 1/15/29 (1) 235 229

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 82 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S) (000S) (000S) (000S) CORPORATE BONDS - 76.1% continued FOREIGN ISSUER BONDS - 12.5% continued Wireline Telecommunications Services – 1.3% continued Casinos & Gaming – 0.2% continued QualityTech L.P./QTS Finance Corp., International Game Technology PLC, 3.88%, 10/1/28 (1) $100 $99 4.13%, 4/15/26 (1) $200 $206 Windstream Escrow LLC/Windstream 301 Escrow Finance Corp., Chemicals – 0.7% 7.75%, 8/15/28 (1) 50 51 Methanex Corp., Zayo Group Holdings, Inc., 5.13%, 10/15/27 25 25 4.00%, 3/1/27 (1) 50 49 Nouryon Holding B.V., 6.13%, 3/1/28 (1) 205 211 8.00%, 10/1/26 (1) 305 324 2,308 NOVA Chemicals Corp., Total Corporate Bonds 4.88%, 6/1/24 (1) 80 84 (Cost $129,133) 132,836 5.00%, 5/1/25 (1) 25 26 5.25%, 6/1/27 (1) 318 334 FOREIGN ISSUER BONDS – 12.5% Trinseo Materials Operating Airlines – 0.5% S.C.A./Trinseo Materials Finance, Air Canada, Inc., (1) 7.75%, 4/15/21 (1) 50 50 5.38%, 9/1/25 285 293 (1) American Airlines, Inc./AAdvantage 5.13%, 4/1/29 50 51 Loyalty IP Ltd., Tronox Finance PLC, 5.50%, 4/20/26 (1) 375 391 5.75%, 10/1/25 (1) 85 89 (1) 5.75%, 4/20/29 310 330 1,226 Delta Air Lines, Inc./SkyMiles IP Ltd., Commercial Finance – 0.3% 4.50%, 10/20/25 (1) 25 27 Global Aircraft Leasing Co. Ltd., Hawaiian Brand Intellectual Property 6.50%, 9/15/24 (1) (3) 531 509 Ltd./HawaiianMiles Loyalty Ltd., VistaJet Malta Finance PLC/XO (1) 50 53 5.75%, 1/20/26 Management Holding, Inc., Spirit Loyalty Cayman Ltd./Spirit IP 10.50%, 6/1/24 (1) 50 54 Cayman Ltd., 563 8.00%, 9/20/25 (1) 50 57 Consumer Finance – 0.0% 908 Fairstone Financial, Inc., Auto Parts Manufacturing – 0.1% 7.88%, 7/15/24(1) 50 52 Clarios Global L.P., Consumer Services – 0.3% 6.75%, 5/15/25 (1) 50 53 Garda World Security Corp., Clarios Global L.P./Clarios (1) U.S. Finance Co., 8.75%, 5/15/25 390 408 (1) 8.50%, 5/15/27 (1) 75 81 4.63%, 2/15/27 50 50 9.50%, 11/1/27 (1) 20 22 134 480 Cable & Satellite – 0.1% Virgin Media Vendor Financing Notes Containers & Packaging – 1.0% IV DAC, Ardagh Metal Packaging Finance 5.00%, 7/15/28(1) 200 204 U.S.A. LLC/Ardagh Metal Packaging Finance PLC, Casinos & Gaming – 0.2% 3.25%, 9/1/28 (1) 500 494 Gateway Casinos & Entertainment Ltd., Cascades, Inc./Cascades U.S.A., Inc., 8.25%, 3/1/24 (1) 100 95 5.38%, 1/15/28 (1) 50 53

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 83 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S) (000S) (000S) (000S) FOREIGN ISSUER BONDS - 12.5% continued FOREIGN ISSUER BONDS - 12.5% continued Containers & Packaging – 1.0% continued Hardware – 0.0% Intelligent Packaging Holdco Issuer L.P., Seagate HDD Cayman, 9.00%, 1/15/26 (1) (3) $25 $25 3.13%, 7/15/29 (1) $25 $24 Intelligent Packaging Ltd. Finco, 3.38%, 7/15/31 (1) 25 24 Inc./Intelligent Packaging Ltd. 48 Co-Issuer LLC, Home Improvement – 0.0% 6.00%, 9/15/28 (1) 885 914 Masonite International Corp., Trivium Packaging Finance B.V., 5.75%, 9/15/26(1) 25 26 8.50%, 8/15/27 (1) 205 222 Homebuilders – 0.1% 1,708 Brookfield Residential Properties, Entertainment Resources – 0.1% Inc./Brookfield Residential Motion Bondco DAC, U.S. Corp., (1) 6.63%, 11/15/27 240 245 6.38%, 5/15/25 (1) 25 26 Exploration & Production – 0.4% 4.88%, 2/15/30 (1) 50 50 Energean Israel Finance Ltd., Empire Communities Corp., 5.38%, 3/30/28 25 25 7.00%, 12/15/25 (1) 25 26 5.88%, 3/30/31 25 25 Mattamy Group Corp., Leviathan Bond Ltd., 4.63%, 3/1/30 (1) 75 74 (1) (13) 6.13%, 6/30/25 25 27 176 6.50%, 6/30/27 (1) (13) 25 27 Integrated Oils – 0.1% MEG Energy Corp., Cenovus Energy, Inc., 7.13%, 2/1/27 (1) 75 79 3.00%, 8/15/22 50 51 5.88%, 2/1/29 (1) 25 25 5.25%, 6/15/37 25 27 OGX Austria GmbH, 5.40%, 6/15/47 50 56 8.50%, 6/1/18 (1) (4) (5) (10) 2,420 — 134 8.38%, 4/1/22 (1)(4)(5)(10) 1,800 — Machinery Manufacturing – 0.7% Seven Generations Energy Ltd., ATS Automation Tooling Systems, Inc., 6.88%, 6/30/23 (1) 18 18 4.13%, 12/15/28 (1) 25 25 5.38%, 9/30/25 (1) 25 26 Husky III Holding Ltd., Teine Energy Ltd., 13.00%, (100% Cash), 2/15/25 4/15/29 (1) (8) 400 403 (1) (3) 50 54 655 Titan Acquisition Ltd./Titan Food & Beverage – 0.2% Co-Borrower LLC, Cooke Omega Investments, Inc./Alpha 7.75%, 4/15/26 (1) 1,020 1,061 VesselCo Holdings, Inc., 1,140 8.50%, 12/15/22 (1) 75 77 Metals & Mining – 1.9% Herbalife Nutrition Ltd./HLF Financing, ArcelorMittal S.A., Inc., 4.55%, 3/11/26 50 55 7.88%, 9/1/25 (1) 75 82 7.25%, 10/15/39 80 109 JBS U.S.A. LUX S.A./JBS U.S.A. Food Co./JBS U.S.A. Finance, Inc., 7.00%, 3/1/41 85 116 5.50%, 1/15/30 (1) 125 138 Baffinland Iron Mines Corp./Baffinland Iron Mines L.P., 297 8.75%, 7/15/26 (1) 1,695 1,793

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 84 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S) (000S) (000S) (000S) FOREIGN ISSUER BONDS - 12.5% continued FOREIGN ISSUER BONDS - 12.5% continued Metals & Mining – 1.9% continued Pharmaceuticals – 0.9% Constellium S.E., Bausch Health Cos., Inc., 5.63%, 6/15/28 (1) $285 $301 6.13%, 4/15/25 (1) $540 $554 First Quantum Minerals Ltd., 9.00%, 12/15/25 (1) 200 217 6.50%, 3/1/24 (1) 200 203 7.00%, 1/15/28 (1) 25 27 6.88%, 3/1/26 (1) 200 207 5.00%, 1/30/28 (1) 75 76 FMG Resources Pty. Ltd., Series 2006, 5.00%, 2/15/29 (1) 75 74 4.38%, 4/1/31 (1) 100 102 7.25%, 5/30/29 (1) 50 56 Hudbay Minerals, Inc., Endo Dac/Endo Finance LLC/Endo 4.50%, 4/1/26 (1) 125 130 Finco, Inc., (1) 6.13%, 4/1/29 (1) 180 192 9.50%, 7/31/27 97 105 (1) IAMGOLD Corp., 6.00%, 6/30/28 116 94 5.75%, 10/15/28 (1) 25 25 Endo Luxembourg Finance Co. I Mountain Province Diamonds, Inc., S.a.r.l./Endo U.S., Inc., (1) 50 51 8.00%, 12/15/22 (1) 25 23 6.13%, 4/1/29 Mallinckrodt International Finance Northwest Acquisitions ULC/Dominion S.A./Mallinckrodt CB LLC, Finco, Inc., 5.75%, 8/1/22 (1) (5) 200 136 7.13%, 11/1/22 (1) (4) (5) (6) 1,905 — 10.00%, 4/15/25 (1) (4) (5) 75 83 Taseko Mines Ltd., Teva Pharmaceutical Finance 7.00%, 2/15/26 (1) 50 51 Netherlands III B.V., 3,307 4.10%, 10/1/46 75 66 Oil & Gas Services & Equipment – 0.5% 1,539 Ensign Drilling, Inc., Railroad – 0.2% 9.25%, 4/15/24 (1) 75 61 Bombardier, Inc., Nabors Industries Ltd., 6.00%, 10/15/22 (1) 25 25 7.25%, 1/15/26 (1) 25 21 6.13%, 1/15/23 (1) 150 156 7.50%, 1/15/28 (1) 50 41 7.50%, 12/1/24 (1) 50 50 Precision Drilling Corp., 7.88%, 4/15/27 (1) 75 74 5.25%, 11/15/24 25 23 7.13%, 1/15/26 (1) 75 73 305 Shelf Drilling Holdings Ltd., Refining & Marketing – 0.1% 8.88%, 11/15/24 (1) 25 25 Parkland Corp., (1) 8.25%, 2/15/25 (1) 50 36 6.00%, 4/1/26 25 26 (1) TechnipFMC PLC, 5.88%, 7/15/27 50 53 (1) (8) 6.50%, 2/1/26 (1) 165 172 10/1/29 100 101 Transocean Guardian Ltd., 180 (1) 5.88%, 1/15/24 54 47 Restaurants – 0.2% Transocean Sentry Ltd., 1011778 B.C. ULC/New Red Finance, 5.38%, 5/15/23 (1) 48 45 Inc., Transocean, Inc., 4.00%, 10/15/30(1) 395 381 (1) 7.25%, 11/1/25 440 282 Software & Services – 0.2% (1) 11.50%, 1/30/27 114 98 Camelot Finance S.A., (1) 8.00%, 2/1/27 25 15 4.50%, 11/1/26 (1) 75 78 939

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 85 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S) (000S) (000S) (000S) FOREIGN ISSUER BONDS - 12.5% continued FOREIGN ISSUER BONDS - 12.5% continued Software & Services – 0.2% continued Waste & Environment Services & Equipment – 0.0% Nielsen Co. Luxembourg (The) S.a.r.l., GFL Environmental, Inc., 5.00%, 2/1/25 (1) $110 $113 4.00%, 8/1/28(1) $25 $24 Open Text Corp., Wireless Telecommunications Services – 0.9% (1) 5.88%, 6/1/26 150 155 Altice France S.A., (1) 3.88%, 2/15/28 50 50 8.13%, 2/1/27 (1) 200 219 396 5.50%, 1/15/28 (1) 200 205 Travel & Lodging – 2.2% Connect Finco S.a.r.l./Connect Carnival Corp., U.S. Finco LLC, (1) 700 745 11.50%, 4/1/23 (1) 60 69 6.75%, 10/1/26 10.50%, 2/1/26 (1) 320 377 Digicel Group 0.5 Ltd., (3) 130 127 7.63%, 3/1/26 (1) 325 349 10.00%, 4/1/24 (1) (3) 46 38 5.75%, 3/1/27 (1) 660 679 8.00%, 4/1/25 9.88%, 8/1/27 (1) 195 230 Intelsat Jackson Holdings S.A., (1) (5) 75 47 6.65%, 1/15/28 50 53 8.50%, 10/15/24 (1) (5) 50 31 NCL Corp. Ltd., 9.75%, 7/15/25 Intelsat Luxembourg S.A., 12.30%, 5/15/24 (1) 25 30 (5) 50 2 3.63%, 12/15/24 (1) 170 160 8.13%, 6/1/23 10.30%, 2/1/26 (1) 50 59 Telesat Canada/Telesat LLC, (1) 50 50 5.88%, 3/15/26 (1) 270 274 4.88%, 6/1/27 (1) 25 25 NCL Finance Ltd., 6.50%, 10/15/27 Vodafone Group PLC, 6.13%, 3/15/28 (1) 70 71 Royal Caribbean Cruises Ltd., (Variable, USD Swap 5Y + 4.87%), 7.00%, 4/4/79 (7) 75 91 5.25%, 11/15/22 255 263 10.90%, 6/1/23 (1) 125 144 1,580 9.13%, 6/15/23 (1) 25 28 Wireline Telecommunications Services – 0.6% 11.50%, 6/1/25 (1) 320 373 Altice France Holding S.A., (1) 7.50%, 10/15/27 25 28 10.50%, 5/15/27 200 225 (1) 3.70%, 3/15/28 50 46 6.00%, 2/15/28 665 655 5.50%, 4/1/28 (1) 250 251 Telecom Italia Capital S.A., Viking Cruises Ltd., 6.38%, 11/15/33 25 30 6.25%, 5/15/25 (1) 75 74 6.00%, 9/30/34 75 85 13.00%, 5/15/25 (1) 50 59 7.20%, 7/18/36 25 32 5.88%, 9/15/27 (1) 50 49 Telecom Italia S.p.A., (1) 7.00%, 2/15/29 (1) 25 26 5.30%, 5/30/24 25 27 Viking Ocean Cruises Ship VII Ltd., 1,054 5.63%, 2/15/29 (1) 25 25 Total Foreign Issuer Bonds VOC Escrow Ltd., (Cost $26,607) 21,819 5.00%, 2/15/28 (1) 50 49 3,766 Utilities – 0.0% Superior Plus L.P./Superior General Partner, Inc., 4.50%, 3/15/29(1) 50 51

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 86 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S) (000S) (000S) (000S) TERM LOANS – 4.2% (14) TERM LOANS - 4.2% (14) continued Casinos & Gaming – 0.1% Containers & Packaging – 0.1% continued Boyd Gaming Corp., Refinancing Term Flex Acquisition Company, Inc., 2021 B Loan, Specified Refinancing Term Loan, (Floating, ICE LIBOR USD 1W + (Floating, ICE LIBOR USD 1M + 2.25%), 2.33%, 9/15/23 $33 $33 3.50%, 0.50% Floor), 4.00%, Golden Nugget Online Gaming, Inc., 3/2/28 $84 $83 2020 Initial Term Loan, 192 (Floating, ICE LIBOR USD 3M + Distributors - Consumer Discretionary – 0.2% 12.00%, 1.00% Floor), 13.00%, American Tire Distributors, Inc., Initial 10/4/23 25 29 Term Loan, Golden Nugget, Inc., Initial B Term (Floating, ICE LIBOR USD 3M + Loan, 6.00%, 1.00% Floor), 7.00%, (Floating, ICE LIBOR USD 2M + 9/1/23 (4) (11) 197 194 2.50%, 0.75% Floor), 3.25%, (Floating, ICE LIBOR USD 3M + 10/4/23 68 67 7.50%, 1.00% Floor), 8.50%, 129 9/2/24 (4) (11) 13 13 Chemicals – 0.1% (Floating, ICE LIBOR USD 1M + Consolidated Communications, Inc., 7.50%, 1.00% Floor), 8.50%, (4) (11) Term Loan B, 9/2/24 116 113 10/2/27 (15) 50 50 320 Consolidated Energy Finance S.A., Entertainment Content – 0.0% Initial Term Loan, Allen Media LLC, Initial Term Loan, (Floating, ICE LIBOR USD 1M + (Floating, ICE LIBOR USD 3M + 2.50%), 2.61%, 5/7/25 73 71 5.50%), 5.70%, 2/10/27 49 49 Solenis Holdings LLC, Initial Dollar Term Diamond Sports Group LLC, Term Loan, Loan, (Floating, ICE LIBOR USD 1M + (Floating, ICE LIBOR USD 3M + 3.25%), 3.36%, 8/24/26 49 33 4.00%), 4.19%, 6/26/25 22 82 Solenis Holdings LLC, Initial Term Loan, (Floating, ICE LIBOR USD 3M + Entertainment Resources – 0.0% 8.50%), 8.69%, 6/26/26 105 105 UFC Holdings LLC, Term B-3 Loan, 228 (Floating, ICE LIBOR USD 3M + 3.00%, 0.75% Floor), 3.75%, Consumer Products – 0.1% 4/29/26 72 72 Sunshine Luxembourg VII SARL, Facility Exploration & Production – 0.1% B1, Ascent Resources Utica Holdings LLC / (Floating, ICE LIBOR USD 3M + Aru Finance Corp., Term Loan, 4.25%, 1.00% Floor), 5.25%, 10/1/26 107 107 (Floating, ICE LIBOR USD 3M + 9.00%, 1.00% Floor), 10.00%, Containers & Packaging – 0.1% 11/1/25 213 235 BWay Holding Co., Initial Term Loan, Health Care Facilities & Services – 0.4% (Floating, ICE LIBOR USD 3M + ADMI Corp., Amendment No. 4 3.25%), 3.44%, 4/3/24 111 109 Refinancing Term Loan, (Floating, ICE LIBOR USD 1M + 3.25%, 0.50% Floor), 3.75%, 12/23/27 75 74

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 87 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S) (000S) (000S) (000S) TERM LOANS - 4.2% (14) continued TERM LOANS - 4.2% (14) continued Health Care Facilities & Services – 0.4% continued Machinery Manufacturing – 0.1% Milano Acquisition Corp., Term B Loan, Welbilt, Inc., Term B Loan, 10/1/27 (15) $120 $119 (Floating, ICE LIBOR USD 1M + (Floating, ICE LIBOR USD 3M + 2.50%), 2.61%, 10/23/25 $125 $119 4.00%, 0.75% Floor), 4.75%, Metals & Mining – 0.4% 10/1/27 224 224 RA Acquisition Purchaser LLC, Notes, National Mentor Holdings, Inc., (Floating, ICE LIBOR USD 3M + Delayed Draw Term Loan, 10.00%, 1.00% Floor), 11.00%, (15) (16) 3/2/28 13 13 5/31/23(4) (9) (11) 671 644 National Mentor Holdings, Inc., Initial Oil & Gas Services & Equipment – 0.0% Term C Loan, ChampionX Holding, Inc., Term Loan, (Floating, ICE LIBOR USD 3M + (Floating, ICE LIBOR USD 3M + 3.75%, 0.75% Floor), 4.50%, 5.00%, 1.00% Floor), 6.00%, 3/2/28 44 6/3/27 72 73 National Mentor Holdings, Inc., Initial Term Loan, Oil, Gas & Coal – 0.0% (Floating, ICE LIBOR USD 1M + Parker Drilling Co., Initial Loan, 3.75%, 0.75% Floor), 4.50%, (Floating, ICE LIBOR USD 3M + 3/2/28 65 64 11.00% Cash, 2.00% PIK), (3) (Floating, ICE LIBOR USD 3M + 11.00%, 3/26/24 16 15 3.75%, 0.75% Floor), 4.50%, Power Generation – 0.1% 3/2/28 58 58 Granite Generation LLC, Term Loan, Team Health Holdings, Inc., Initial Term (Floating, ICE LIBOR USD 1M + Loan, 3.75%, 1.00% Floor), 4.75%, (Floating, ICE LIBOR USD 1M + 11/9/26 96 95 2.75%, 1.00% Floor), 3.75%, (Floating, ICE LIBOR USD 3M + 2/6/24 224 208 3.75%, 1.00% Floor), 4.75%, 764 11/9/26 18 18 Home Improvement – 0.1% 113 Redstone Holdco 2 L.P., Initial Term Property & Casualty Insurance – 0.7% Loan, Asurion LLC, New B-3 Term Loan, (Floating, ICE LIBOR USD 3M + (Floating, ICE LIBOR USD 1M + 5.00%, 1.00% Floor), 6.00%, 5.25%), 5.36%, 1/31/28 950 967 9/1/27 100 100 Asurion LLC, New B-8 Term Loan, InternetMedia–0.8% 12/23/26 (15) 80 79 Auction.com LLC, Term Loan, (Floating, ICE LIBOR USD 1M + (Floating, ICE LIBOR USD 1M + 3.25%), 3.36%, 12/23/26 20 20 8.00%, 1.00% Floor), 9.00%, Hub International Ltd., B-3 Incremental (9) 9/29/25 1,360 1,319 Term Loan, Endurance International Group (Floating, ICE LIBOR USD 3M + Holdings, Inc., Initial Term Loan, 3.25%, 0.75% Floor), 4.00%, (Floating, ICE LIBOR USD 3M + 4/25/25 98 98 3.50%, 0.75% Floor), 4.25%, 1,164 2/10/28 25 25 1,344

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 88 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

PRINCIPAL PRINCIPAL AMOUNT VALUE AMOUNT VALUE (000S) (000S) (000S) (000S) TERM LOANS - 4.2% (14) continued TERM LOANS - 4.2% (14) continued Publishing & Broadcasting – 0.1% Travel & Lodging – 0.1% Cengage Learning, Inc., 2016 Carnival Corp., Initial Advance, Refinancing Term Loan, (Floating, ICE LIBOR USD 1M + (Floating, ICE LIBOR USD 3M + 7.50%, 1.00% Floor), 8.50%, 4.25%, 1.00% Floor), 5.25%, 6/30/25 $104 $107 $123 $121 6/7/23 Wireless Telecommunications Services – 0.0% Clear Channel Outdoor Holdings, Inc., Altice France S.A., Incremental Term Term B Loan, Loan, (Floating, ICE LIBOR USD 3M + (Floating, ICE LIBOR USD 3M + 3.50%), 3.71%, 8/21/26 24 24 4.00%), 4.20%, 8/14/26 47 47 GTT Communications B.V., Initial Term Wireline Telecommunications Services – 0.1% Loan, Frontier Communications Corp., Initial (Floating, ICE PIK Interest USD 1M + Term Loan, 2.50%, 1.00% Floor), 2.50%, 12/28/21 92 93 (Floating, ICE LIBOR USD 1M + 4.75%, 1.00% Floor), 5.75%, 238 10/8/21 50 50 Restaurants – 0.0% GTT Communications B.V., Delayed 1011778 B.C. Unlimited Liability Co., Draw Term Loan, Term B-4 Loan, (Floating, ICE LIBOR USD 1M + (Floating, ICE LIBOR USD 1M + 5.00%, 1.00% Floor), 8.50%, 1.75%), 1.86%, 11/19/26 33 32 12/28/21 160 162 Retail - Consumer Discretionary – 0.3% 212 Great Outdoors Group LLC, Term B-1 Total Term Loans Loan, (Cost $7,308) 7,333 (Floating, ICE LIBOR USD 3M + 4.25%, 0.75% Floor), 5.00%, NUMBER VALUE OF SHARES (000S) 3/6/28 458 458 COMMON STOCKS – 2.4% Staples, Inc., 2019 Refinancing New Term B-1 Loan, Chemicals – 0.1% (9)(11)* (Floating, ICE LIBOR USD 3M + Utex Industries, Inc. 2,200 $124 5.00%), 5.21%, 4/16/26 74 71 Distributors – 0.4% 529 ATD New Holdings, Inc.(4)(11)* 22,076 739 Software & Services – 0.3% Energy Equipment & Services – 0.1% athenahealth, Inc., Term B-1 Loan, FTS International, Inc., Class A* 2,775 69 (Floating, ICE LIBOR USD 3M + Noble Finance Co.* 2,782 38 4.25%), 4.45%, 2/11/26 169 170 Parker Drilling Co.* 917 6 Ivanti Software, Inc., Initial Term Loan, 113 (Floating, ICE LIBOR USD 3M + IT Services – 0.7% 4.75%, 1.00% Floor), 5.75%, (4) (9) (11) * 12/1/27 240 241 Skillsoft Corp., Class A 5,898 1,160 Verscend Holding Corp., Term B Loan, Metals & Mining – 1.1% (Floating, ICE LIBOR USD 1M + Algoma Steel Parent GP S.A.(4)(10)(11) 4.50%), 4.61%, 8/27/25 57 56 * 4,899 — (4) (9) (11) * 467 Algoma Steel Parent S.C.A. 4,899 63 Real Alloy Parent, Inc.(9) * 48 1,948 2,011

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 89 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

NUMBER VALUE NUMBER VALUE OF SHARES (000S) OF SHARES (000S) COMMON STOCKS - 2.4% continued INVESTMENT COMPANIES – 4.6% Oil, Gas & Consumable Fuels – 0.0% Northern Institutional Funds - Bruin Blocker LLC* 9,827 $5 U.S. Government Portfolio (Shares), 0.00%(17) (18) 8,003,351 $8,003 California Resources Corp.* 29 1 Total Investment Companies Chaparral Energy, Inc.* 1,057 7 (Cost $8,003) 8,003 Cloud Peak Energy, Inc.(10) * 20 — Denbury, Inc.* 327 16 Total Investments – 100.1% 29 (Cost $175,419) 174,788 Total Common Stocks Liabilities less Other Assets – (0.1%) (171) (Cost $3,716) 4,176 NET ASSETS – 100.0% $174,617

PREFERRED STOCKS – 0.0% (1) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, Oil, Gas & Consumable Fuels – 0.0% normally to qualified institutional buyers. The value of these securities is Global Partners L.P./MA* 1,600 41 determined by valuations supplied by a pricing service or brokers, or, if not Total Preferred Stocks available, in accordance with procedures established by the Board of Trustees of Northern Funds. (Cost $40) 41 (2) Perpetual bond. Maturity date represents next call date. (3) Security is a payment in-kind bond (PIK), distributions received in-kind unless OTHER–0.0% otherwise noted in the description. (4) Escrow Appvion, Inc.(4)(10)(11)* 225,000 — Restricted security that has been deemed illiquid. At March 31, 2021, the value of these restricted illiquid securities amounted to approximately (10) * Escrow Cloud Peak Energy, Inc. 250,000 — $12,432,000 or 7.1% of net assets. Additional information on these Escrow GenOn Energy, Inc.(10) (11) * 25,000 — restricted illiquid securities is as follows: Escrow Hercules Offshore, Inc.(10) (11) * 3,570 — (1) (4) (9) * ACQUISITION Escrow High Ridge 1,100,000 13 AND Escrow Washington Mutual Bank(9) (11) ENFORCEABLE COST SECURITY DATE (000S) * 250,000 3 Total Other Algoma Steel Parent GP S.A. 3/31/20 $47 (Cost $134) 16 Algoma Steel Parent S.C.A. 3/31/20 47 Algoma Steel Parent S.C.A., NUMBER VALUE 0.00%, 11/30/47 3/31/20 176 OF WARRANTS (000S) WARRANTS – 0.0% American Tire Distributors, Inc., Initial Term Loan, Appvion, Inc. Class A, Exp. 6/13/23, 7.00%, 9/1/23 12/21/18 197 Strike $0.00(10) * 219 $— American Tire Distributors, Inc., Initial Appvion, Inc. Class B, Exp. 6/13/23, Term Loan, (10) * Strike $0.00 219 — 8.50%, 9/2/24 12/21/18 13 California Resources Corp., Exp. American Tire Distributors, Inc., Initial (6) * 10/27/24, Strike $36.00 66 — Term Loan, Denbury, Inc., Exp. 9/18/25, Strike 8.50%, 9/2/24 12/21/18 114 $32.59* 1,236 26 ATD New Holdings, Inc. 1/9/19 470 iHeartMedia, Inc., Exp. 5/1/39, Strike Chaparral Energy, Inc., $0.00* 419 8 9.00%, 2/14/25 12/10/20 17 Utex Industries, Inc., Exp. 12/31/49, Escrow Appvion, Inc. 8/24/18 — Strike $0.00(10) (11) * 5,500 — Escrow High Ridge 12/18/20 — Total Warrants GTT Communications, Inc., (Cost $18) 34 7.88%, 12/31/24 12/19/18-2/6/20 1,501 Hertz (The) Corp., 6.00%, 1/15/28 3/26/20-4/7/20 26

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 90 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

(17) ACQUISITION Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the AND investment adviser to the Fund and the investment adviser to Northern ENFORCEABLE COST Institutional Funds. SECURITY DATE (000S) (18) 7-day current yield as of March 31, 2021 is disclosed. Mallinckrodt International Finance * Non-Income Producing Security S.A./Mallinckrodt CB LLC, EXPLANATION OF ABBREVIATIONS AND ACRONYMS USED THROUGHOUT 10.00%, 4/15/25 10/15/20-10/16/20 $82 THE SCHEDULE OF INVESTMENTS: Murray Energy Corp., 12.00%, 4/15/24 7/3/18-4/18/19 397 1M - 1 Month Northwest Acquisitions ULC/Dominion Finco, Inc., 1W - 1 Week 7.13%, 11/1/22 10/6/17-11/18/19 1,733 2M - 2 Month Northwest Hardwoods, Inc., 7.50%, 8/1/21 7/31/18 24 3M - 3 Month NWH Escrow Corp., 7.50%, 8/1/21 11/16/16 24 5Y - 5 Year OGX Austria GmbH, B.V. - Besloten Vennootschap (Dutch: Private Limited Liability Company) 8.38%, 4/1/22 5/30/12-4/18/13 1,497 OGX Austria GmbH, CMT - Constant Maturity 8.50%, 6/1/18 5/26/11-4/17/13 2,265 One Call Corp., ICE - Intercontinental Exchange 8.75%, 7/1/24 2/19/19-1/1/21 5,562 L.P. - Limited Partnership RA Acquisition Purchaser LLC, Notes, 11.00%, 5/31/23 5/31/18-6/30/20 671 LIBOR - London Interbank Offered Rate SESI LLC, 7.13%, 12/15/21 9/19/17-9/18/18 75 LLC - Limited Liability Company Skillsoft Corp., Class A 8/27/20 778 PIK - Payment In-Kind Specialty Steel Supply, Inc., 11.00%, 11/15/22 11/16/17 2,670 PLC - Public Limited Company Vine Energy Holdings LLC, 6.75%, 4/15/29 3/31/21 235 S.A. - Société Anonyme (French: Public Limited Company)

S.E. - Societas Europaea (German: Public Company) (5) Issuer has defaulted on terms of debt obligation. Income is not being accrued. SOFR - Secured Overnight Financing Rate (6) Value rounds to less than one thousand. (7) Variable rate security. Security issued at a fixed coupon rate, which converts USD - United States Dollar to a variable rate at a future date. Rate shown is the rate in effect as of March 31, 2021. Percentages shown are based on Net Assets. (8) When-Issued Security. Coupon rate is not in effect at March 31, 2021. (9) Level 3 asset. At March 31, 2021, the Fund’s investments were denominated in the following (10) Level 3 asset that is worthless, bankrupt or has been delisted. currencies: (11) Restricted security. (12) Variable rate is calculated based on the issuer’s annual income subject to %OFNET certain fees. CONCENTRATION BY CURRENCY ASSETS (13) Security exempt from registration pursuant to Regulation S under the Securities Act of 1933. Regulation S applies to securities offerings that are United States Dollar 100.1% made outside of the United States and do not involve direct selling efforts in Total Investments 100.1 the United States and as such may have restrictions on resale. (14) Variable rate security. Rate as of March 31, 2021 is disclosed. Liabilities less Other Assets (0.1) (15) Position is unsettled. Contract rate was not determined at March 31, 2021 Net Assets 100.0% and does not take effect until settlement date. (16) Unfunded loan commitment. An unfunded loan commitment is a contractual Various inputs are used in determining the value of the Fund’s investments. These obligation for future funding at the option of the Borrower. The Fund receives inputs are summarized in three levels listed below: a stated coupon rate until the borrower draws on the loan commitment, at which time the rate will become the stated rate in the loan agreement. See Level 1 - Unadjusted quoted market prices in active markets for identical securities Note 2. on the measurement date. Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 91 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices). Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuations of the Fund’s investments by the above fair value hierarchy as of March 31, 2021:

LEVEL 1 LEVEL 2 LEVEL 3 TOTAL INVESTMENTS (000S) (000S) (000S) (000S) Convertible Bonds(1) $ — $ 530 $ — $ 530 Corporate Bonds: Entertainment Resources — 3,473 1,095 4,568 Exploration & Production — 8,025 16 8,041 Iron & Steel — — 2,631 2,631 Managed Care — 474 6,166 6,640 Manufactured Goods — 346 1,509 1,855 All Other Industries(1) — 109,101 — 109,101 Total Corporate Bonds — 121,419 11,417 132,836 Foreign Issuer Bonds(1) — 21,819 — 21,819 Term Loans: Internet Media — 25 1,319 1,344 Metals & Mining — — 644 644 All Other Industries(1) — 5,345 — 5,345 Total Term Loans — 5,370 1,963 7,333 Common Stocks: Distributors — 739 — 739 Energy Equipment & Services 75 38 — 113 Oil, Gas & Consumable Fuels 17 12 — 29 All Other Industries(1) — — 3,295 3,295 Total Common Stocks 92 789 3,295 4,176 Preferred Stocks 41 — — 41 Other — — 16 16 Warrants 26 8 — 34 Investment Companies 8,003 — — 8,003 Total Investments $8,162 $149,935 $16,691 $174,788 (1) Classifications as defined in the Schedule of Investments.

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) CHANGE IN FROM BALANCE ACCRUED REALIZED UNREALIZED TRANSFERS TRANSFERS BALANCE INVESTMENTS AS OF DISCOUNTS GAIN APPRECIATION INTO OUT OF AS OF STILL HELD 3/31/20 (PREMIUMS) (LOSS) (DEPRECIATION) PURCHASES SALES LEVEL 3 LEVEL 3 3/31/21 AT 3/31/21 (000S) (000S) (000S) (000S) (000S) (000S) (000S) (000S) (000S) (000S) Corporate Bonds Consumer Products $— $(6) $(1,050) $1,074 $— $(18) $— $— $— $—

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 92 NORTHERN FUNDS ANNUAL REPORT MARCH 31, 2021

CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) CHANGE IN FROM BALANCE ACCRUED REALIZED UNREALIZED TRANSFERS TRANSFERS BALANCE INVESTMENTS AS OF DISCOUNTS GAIN APPRECIATION INTO OUT OF AS OF STILL HELD 3/31/20 (PREMIUMS) (LOSS) (DEPRECIATION) PURCHASES SALES LEVEL 3 LEVEL 3 3/31/21 AT 3/31/21 (000S) (000S) (000S) (000S) (000S) (000S) (000S) (000S) (000S) (000S) Entertainment Resources $975 $3 $— $117 $— $— $— $— $1,095 $118 Exploration & Production — — — (1) 17 — — — 16 (1) Iron & Steel 2,376 — — 255 — — — — 2,631 206 Managed Care — — — — — — 6,166 — 6,166 525 Manufactured Goods 1,448 25 1 14 47 (26) — — 1,509 14 Metals & Mining — (89) (1,165) 1,254 — — — — — — Term Loans Internet Media 1,253 3 — 63 — — — — 1,319 63 Metals & Mining 565 — — 57 22 — — — 644 57 Common Stocks Chemicals — — — 16 108 — — — 124 16 Distributors 435 — — 305 — — — (740) — — IT Services — — — 382 778 — — — 1,160 381 Metals & Mining 1,577 — — 370 — — 64 — 2,011 408 Other 3 — — 13 — — — — 16 13

Total $8,632 $(64) $(2,214) $3,919 $972 $(44) $6,230 $(740) $16,691 $1,800

Securities valued at $66 included in the Balance as of 3/31/21 above were valued using evaluated prices provided by a third party provider. Securities valued at $16,625 included in the Balance as of 3/31/21 above were valued using prices provided by the Fund’s investment adviser’s pricing and valuation committee. Transfers out of Level 3, noted above, were due to the Fund receiving an evaluated price from a vendor. Valuation using evaluated prices by a third party provider and by the Fund’s investment adviser’s pricing and valuation committee were also responsible for securities that were transferred into level 3, as noted above.

FAIR VALUE AT 3/31/21 VALUATION UNOBSERVABLE RANGE (WEIGHTED (000S) TECHNIQUES INPUTS AVERAGE)

Corporate Bonds $11,430 Market Approach Yield(1) 3.0%-12.1% (7.2%) Market Approach Market Comparables(2) 1.5% Market Approach Estimated Recovery Value(3) Not Applicable Term Loans $1,963 Market Approach Yield(1) 4.2%-7.6% (5.9%) Market Approach Market Comparables(2) 4.1% Common Stocks $3,232 Discounted Cash Flow / Market Approach Discount Rate / EBITDA Multiple(2) 10.6%/5.6x Market Approach Discount Rate(2) 7.3% (1)The significant unobservable inputs that were used in the fair value measurement are: Yield. Significant decreases (increases) in yield would have resulted in a significantly higher (lower) fair value measurement. (2)The significant unobservable inputs that can be used in the fair value measurement are: Discount Rate and EBITDA Multiple. Significant increases (decreases) in the discount rate in isolation would have resulted in a significantly lower (higher) fair value measurement while an increase (decrease) in EBITDA multiple in isolation would have resulted in a significantly higher (lower) fair value measurement.

See Notes to the Financial Statements.

NORTHERN FUNDS ANNUAL REPORT 93 MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued MARCH 31, 2021

(3)The significant unobservable inputs that can be used in the fair value measurement are: Estimated Recovery Value. Significant increases (decreases) in estimated recovery value in isolation would have resulted in a significantly higher (lower) fair value measurement.

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 94 NORTHERN FUNDS ANNUAL REPORT MULTI-MANAGER FUNDS

NOTES TO THE FINANCIAL STATEMENTS MARCH 31, 2021

1. ORGANIZATION on the exchange or market in which such securities are principally traded. If any such security is not traded on a valuation date, it is Northern Funds (the “Trust”) is a Delaware statutory trust and is valued at the most recent quoted bid price. Over-the-counter registered under the Investment Company Act of 1940, as securities not reported in the NASDAQ National Market System amended (the “1940 Act”), as an open-end management are also generally valued at the most recent quoted bid price. Fixed investment company. The Trust offers 42 funds as of March 31, income securities and term loans, however, may be valued on the 2021, each with its own investment objective (e.g., long-term basis of evaluated prices provided by the Funds’ approved capital appreciation, total return or income consistent with independent third-party pricing services when such prices are preservation of capital). The Active M Emerging Markets Equity, believed to reflect the fair value of such securities or broker Active M International Equity, Multi-Manager Global Listed provided prices. Such prices may be determined by taking into Infrastructure, Multi-Manager Global Real Estate, Northern account other similar securities’ prices, yields, maturities, call Engage360TM, Multi-Manager Emerging Markets Debt features, ratings, prepayment speeds, credit risks, cash flows, Opportunity and Multi-Manager High Yield Opportunity Funds institutional size trading in similar groups of securities and (each a “Fund” and collectively, the “Funds”) are separate, developments related to specific securities. diversified investment portfolios of the Trust, except for the Multi-Manager Emerging Markets Debt Opportunity Fund which The values of securities of foreign issuers are generally based upon is a non-diversified portfolio. Non-diversified portfolios may market quotations, which depending upon local convention or invest a relatively high percentage of their net assets in obligations regulation, may be the last sale price, the last bid price or the of a limited number of issuers. Each of the Funds is presented mean between the last bid and asked price as of, in each case, the herein. close of the appropriate exchange or other designated time. Foreign fixed income securities, however, may, like domestic fixed Northern Trust Investments, Inc. (“NTI”), a subsidiary of The income securities, be valued based on evaluated prices provided Northern Trust Company (“Northern Trust”), serves as the by independent pricing services when such prices are believed to investment adviser and administrator for each of the Funds. reflect the fair value of such securities. Northern Trust serves as the custodian, transfer agent and sub-administrator for the Trust. Northern Funds Distributors, Shares of open-end investment companies, other than LLC, not an affiliate of NTI, is the Trust’s distributor. exchange-traded funds, are valued at their NAV. Spot and forward foreign currency exchange contracts are generally valued using an 2. SIGNIFICANT ACCOUNTING POLICIES independent pricing service. Exchange-traded financial futures The Trust, which is an investment company, follows accounting and options are valued at the settlement price as established by the and reporting guidance under Financial Accounting Standards exchange on which they are traded. Over-the-counter options are Board (“FASB”) Accounting Standards Codification Topic 946, valued at broker-provided bid prices, as are swaps, caps, collars Financial Services-Investment Companies. and floors. Centrally cleared swap agreements are generally valued usinganindependentpricingservice.Theforegoingpricesmaybe The following is a summary of significant accounting policies obtained from one or more independent pricing services or, as consistently followed by the Funds in the preparation of their needed or applicable, independent broker-dealers. Short-term financial statements. These policies are in conformity with investmentswithamaturityof60daysorlessarevaluedattheir accounting principles generally accepted in the United States of amortized cost, which NTI, as authorized by the Trust’s Board of America (“U.S. GAAP”). The preparation of financial statements Trustees (the “Board”), has determined approximates fair value. in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of Any securities for which market quotations are not readily assets and liabilities and disclosure of contingent assets and available or are believed to be incorrect are valued at fair value as liabilities at the date of the financial statements and the reported determined in good faith by NTI under the supervision of the amounts of revenues and expenses during the reporting period. Board. The Trust, in its discretion, may make adjustments to the Actual results may differ from those estimates. prices of securities held by a Fund if an event occurs after the publication of fair values normally used by a Fund but before the The net asset value (“NAV”) of each Fund is determined daily as time as of which the Fund calculates its NAV, depending on the of the close of regular trading on the New York Stock Exchange nature and significance of the event, consistent with applicable (“NYSE”), generally 3:00 P.M. Central Time, on each day the regulatory guidance and U.S. GAAP. This may occur particularly NYSE is open for trading. with respect to certain foreign securities held by a Fund, in which case the Trust may use adjustment factors obtained from an A) VALUATION OF SECURITIES AND DERIVATIVES CONTRACTS independent evaluation service that are intended to reflect more Securities are valued at their fair value. Securities traded on accurately the fair value of those securities as of the time the United States (“U.S.”) securities exchanges or in the NASDAQ Fund’s NAV is calculated. National Market System are principally valued at the regular trading session closing price (generally, 3:00 P.M. Central Time)

NORTHERN FUNDS ANNUAL REPORT 95 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued

The use of fair valuation involves the risk that the values used by C) FOREIGN CURRENCY TRANSLATION Values of investments the Funds to price their investments may be higher or lower than denominated in foreign currencies are converted into U.S. dollars the values used by other unaffiliated investment companies and using the spot rates on the NYSE, generally at 3:00 P.M. Central investors to price the same investments. Time. The cost of purchases and proceeds from sales of investments, interest and dividend income are translated into U.S. B) FUTURES CONTRACTS Certain Funds invest in long or short dollars using the spot rates on the NYSE, generally at 3:00 P.M. exchange-traded futures contracts for hedging purposes, in Central Time. The gains or losses, if any, on investments from anticipation of the purchase of securities and for liquidity original purchase date to subsequent sales trade date resulting management purposes. The Multi-Manager Emerging Markets from changes in foreign exchange rates are included in the Debt Opportunity Fund may also use these investments for Statements of Operations in Net realized gains (losses) on non-hedging purposes in order to seek exposure to certain investments and Net change in unrealized appreciation countries or currencies. When used as a hedge, a Fund may sell a (depreciation) on investments. The gains or losses, if any, on futures contract in order to offset a decrease in the fair value of its translation of other assets and liabilities denominated in foreign portfolio securities that might otherwise result from a market currencies and between the trade and settlement dates on decline. A Fund may do so either to hedge the value of its investment transactions are included in Net realized gains (losses) portfolio securities as a whole, or to protect against declines on foreign currency transactions and Net change in unrealized occurring prior to sales of securities in the value of the securities appreciation (depreciation) on foreign currency translations in to be sold. Conversely, a Fund may purchase a futures contract as the Statements of Operations. a hedge in anticipation of purchases of securities. In addition, a Fund may utilize futures contracts in anticipation of changes in D) FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS the composition of its portfolio holdings. A Fund bears the Certain Funds are authorized to enter into forward foreign market risk arising from changes in the value of these financial currency exchange contracts, or forward currency exchange instruments. At the time a Fund enters into a futures contract, it is contracts, for the purchase or sale of a specific foreign currency at generallyrequiredtomakeamargindepositwiththecustodianof a specified exchange rate on a future date. The Multi-Manager a specified amount of liquid assets. Futures are marked-to-market Emerging Markets Debt Opportunity Fund may enter into each day with the change in value reflected in the unrealized gains forward foreign currency contracts for hedging purposes and to or losses. Risk may arise as a result of the potential inability of the seek exposure to certain currencies. Each of the other Funds may counterparties to meet the terms of their contracts. Credit risk is enter into these contracts for hedging purposes, in anticipation of mitigated to the extent that the exchange on which a particular the purchase of securities and for liquidity management purposes, futures contract is traded assumes the risk of a counterparty but not for speculative purposes or to seek to enhance total defaulting on its obligations under the contract. The Statements of return. The Funds may also enter into forward currency exchange Operations include any realized gains or losses on closed futures contracts when seeking to hedge against fluctuations in foreign contracts in Net realized gains (losses) on futures contracts, and currency exchange rates. The objective of a Fund’s foreign any unrealized gains or losses on open futures contracts in Net currency hedging transactions is to reduce the risk that the U.S. change in unrealized appreciation (depreciation) on futures dollar value of a Fund’s foreign currency denominated securities contracts. will decline in value due to changes in foreign currency exchange rates. All forward foreign currency exchange contracts are The contract position and investment strategy utilized during the marked-to-market daily at the applicable exchange rates. Any fiscal year ended March 31, 2021, was as follows: resulting unrealized gains or losses are recorded in Net change in unrealized appreciation (depreciation) on forward foreign CONTRACT INVESTMENT currency exchange contracts in the Statements of Operations. POSITION STRATEGY Gains or losses are recorded for financial statement purposes as Active M Emerging Markets Equity Long Liquidity unrealized until the settlement date. Realized gains or losses, if any, are included in Net realized gains (losses) on forward foreign Active M International Equity Long Liquidity currency exchange contracts in the Statements of Operations. Multi-Manager Global Listed Infrastructure Long Liquidity Northern Engage360TM Long Liquidity Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their At March 31, 2021, the aggregate fair value of securities pledged to contracts and from unanticipated movements in the value of a cover margin requirements for open positions for the Active M foreign currency relative to the U.S. dollar. The contractual Emerging Markets Equity, Active M International Equity, amounts of forward foreign currency exchange contracts do not Multi-Manager Global Listed Infrastructure and Northern TM necessarily represent the amounts potentially subject to risk. A Engage360 Funds was approximately $1,990,000, $4,460,000, Fund bears the market risk from changes in foreign currency $4,180,000 and $890,000, respectively. Further information on the exchange rates and the credit risk if the counterparty to the impact of these positions on the Funds’ financial statements can contract fails to perform. The institutions that deal in forward be found in Note 10. foreign currency contracts are not required to make markets in

MULTI-MANAGER FUNDS 96 NORTHERN FUNDS ANNUAL REPORT MULTI-MANAGER FUNDS

MARCH 31, 2021 the currencies they trade, and these markets can experience The resulting values for credit default agreements serve as an periods of illiquidity. Further information on the impact of these indicator of the current status of the payment/performance risk positions on the Funds’ financial statements can be found and represent the likelihood of an expected liability (or profit) for in Note 10. With respect to forward foreign currency exchange the credit default agreement should the notional amount of the transactions that were outstanding as of March 31, 2021 for the swap agreement be closed/sold as of the period end. When Multi-Manager Emerging Markets Debt Opportunity Fund, compared to the notional amount of the swap, decreasing market approximately $720,000 was pledged by the Fund and is included values for credit default swaps sold and, conversely, increasing in Due from broker on the Statements of Assets and Liabilities. market values for credit default swaps purchased, represent a deterioration of the referenced entity’s credit soundness and a E) CREDIT DEFAULT SWAP AGREEMENTS The Multi-Manager greater likelihood or risk of default or other credit event occurring Emerging Markets Debt Opportunity Fund may invest in credit as defined under the terms of the agreement. default swap agreements for hedging purposes or to gain exposure to certain countries or currencies. The Fund enters into credit When entering into a credit default swap agreement as a buyer of default swap agreements either as a buyer or seller of protection. protection, the Fund may pay an upfront premium to enter into The buyer of protection in a swap agreement is the party that the agreement. When selling protection, the Fund may receive this makes a periodic stream of payments to the counterparty based upfront premium paid from the buyer. During the term of the on the fixed rate of the agreement to the party that is the seller of credit default swap agreement, the discounted value of the protection. In exchange for the fixed rate payments received, the estimated stream of fixed rate payments from buyer to seller yet to seller of protection agrees to provide credit protection to the be made is recorded as unrealized gain or loss on credit default buyer in the form of payment should a credit default event on the swap agreements, with any interest payments already having been referenced obligation occur. In the event of a credit default event, made being recognized as realized gain or loss on credit default as defined under the terms of each particular swap agreement, if swap agreements. This treatment will occur until the credit default the Fund is the seller of protection, the Fund will either a) pay to swap is sold or reaches its expiration. Any upfront payments made the buyer of protection an amount equal to the notional amount or received upon entering into a credit default swap agreement are of the swap agreement and take delivery of the referenced treated as part of the cost and are reflected as part of the obligation or underlying securities comprising the referenced unrealized appreciation (depreciation) on valuation. Upon index or b) pay a net settlement amount in the form of cash or termination of the swap agreement, the amount included in the securities equal to the notional amount of the swap less the cost is reversed and becomes part of the realized gain (loss) on recovery value of the referenced obligation or underlying credit default swap agreements. Unrealized appreciation securities comprising the referenced index. If the Fund is the (depreciation) on credit default swap agreements, if any, is buyer of protection and a credit default event should occur, the included in the Statements of Assets and Liabilities of the Fund will either a) receive from the seller of protection in the Multi-Manager Emerging Markets Debt Opportunity Fund, with swap agreement an amount equal to the notional amount of the corresponding changes in unrealized appreciation (depreciation) swap agreement and deliver the referenced obligation or included in the Statements of Operations. underlying securities comprising the referenced index or b) receive a net settlement amount in the form of cash or securities Counterparty credit risk may arise as a result of the failure of the equal to the notional amount of the swap less the recovery value swap counterparty to comply with the terms of the swap of the referenced obligation or underlying securities comprising agreement. Additionally, risks may arise with respect to the the referenced index. If a credit default event should occur, the underlying issuer of the referenced security. Therefore, the maximum potential amount of future payments the seller of sub-adviser considers the creditworthiness of each underlying protection could be required to make under a credit default swap issuer of the referenced security in addition to the creditwor- agreement would be an amount equal to the notional amount of thiness of the counterparty. In addition, the sub-advisers of the the swap. Multi-Manager Emerging Markets Debt Opportunity Fund may use different counterparties to minimize credit risk and limit the The implied credit spreads are disclosed in the Schedule of exposure to any individual counterparty. As stipulated in each Investments for those agreements for which the Fund is the swap agreement, collateral may be posted between the Fund and protection seller, if any, and serve as an indicator of the current its counterparties to mitigate credit risk. No credit default swap status of the payment/performance risk and represent the agreements were held during the fiscal year ended March 31, 2021. likelihood or risk of default for each swap. The wider the credit spread, the greater the likelihood or risk of default or other credit F) INTEREST RATE SWAP AGREEMENTS The Multi-Manager event occurring for the referenced entity. Events or circumstances Emerging Markets Debt Opportunity Fund may invest in interest that would require the seller to perform under the derivative rate swap agreements for hedging purposes or to gain exposure to agreement are credit events as defined under the terms of that certain countries or currencies. An interest rate swap is an particular swap agreement, such as bankruptcy, cross acceleration, agreement that obligates two parties to exchange a series of cash failure to pay, repudiation and restructuring.

NORTHERN FUNDS ANNUAL REPORT 97 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued flows at specified intervals at agreed upon fixed rates or at rates that were outstanding as of March 31, 2021, the fair value of cash based upon, or calculated by, reference to changes in specified pledged to cover margin requirements for open positions for the prices or interest rates for a specified notional amount. Multi-Manager Emerging Markets Debt Opportunity Fund was approximately $246,000. Such amount is included in Due from Interest payments earned or charged under the terms of the broker on the Statements of Assets and Liabilities. The fair value interest rate swap agreements are recorded as realized gain (loss) of foreign currencies received as collateral for open positions for on interest rate swap agreements. The swap interest receivable or the Multi-Manager Emerging Markets Debt Opportunity Fund payable as of March 31, 2021, if any, is included as unrealized was approximately $94,000. Such amount is included in Due to appreciation (depreciation) on bilateral interest rate swap broker on the Statements of Assets and Liabilities. During the agreements on the Statements of Assets and Liabilities. Unrealized fiscal year ended March 31, 2021, the Multi-Manager Emerging appreciation (depreciation) on bilateral interest rate swap Markets Debt Opportunity Fund entered into bilateral and agreements and variation margin on centrally cleared interest rate centrally cleared interest rate swap agreements to gain country swap agreements, if any, is included in the Statements of Assets exposure. Further information on the impact of these positions and Liabilities of the Multi-Manager Emerging Markets Debt on the Fund’s financial statements can be found in Note 10. Opportunity Fund, with corresponding changes in unrealized appreciation (depreciation) included in the Statements of G) CURRENCY SWAP AGREEMENTS The Multi-Manager Emerging Operations. Markets Debt Opportunity Fund may enter into currency swap agreements to manage its exposure to currency risk. Currency Risks may arise as a result of the failure of the counterparty to the swaps usually involve the delivery of the entire principal amount interest rate swap agreement to comply with the terms of the of one designated currency in exchange for the other designated agreement. The loss incurred by the failure of the counterparty is currency. Therefore, the entire principal value of a currency swap generally limited to the swap interest payment to be received by is subject to the risk that the other party to the swap will default the Fund and/or the termination value at the end of the on its contractual delivery obligations. To the extent that the agreement. Therefore, the sub-adviser considers the amount payable by a Fund under a swap is covered by segregated creditworthiness of each counterparty to a swap agreement in cash or liquid assets, the Funds, NTI and the Funds’ sub-advisers evaluating potential credit risk. The sub-adviser may use different (each, a “Sub-Adviser” and collectively, the “Sub-Advisers”) counterparties to minimize credit risk and limit the exposure to believe that transactions do not constitute senior securities under any individual counterparty. Additionally, risks may arise from the 1940 Act and, accordingly, will not treat them as being subject unanticipated movements in interest rates or in the value of the to a Fund’s borrowing restrictions. underlying counterparties used to minimize credit risk and limit the exposure to any individual counterparty. As stipulated in each A Fund will not enter into a currency swap unless the unsecured interest rate swap agreement, collateral may be posted between the commercial paper, senior debt or the claims-paying ability of the Fund and its counterparties to mitigate credit risk. other party thereto is rated either A or A-1 or better by S&P Global’s Rating Services or Fitch Ratings, or A or Prime-1 or Swap agreements are privately negotiated in the over-the-counter better by Moody’s Investor Services, Inc. or a comparable rating market and may be entered into as a bilateral contract or centrally from another organization that is recognized as a nationally cleared (“centrally cleared swaps”). Bilateral swap agreements are recognized statistical rating organization or, if unrated by such traded between counterparties and, as such, are subject to the risk rating organization, is determined to be of comparable quality by that a party to the agreement will not be able to meet its NTI or the Sub-Advisers. If there is a default by the other party to obligations. In a centrally cleared swap, immediately following such transaction, a Fund will have contractual remedies pursuant execution of the swap agreement, the swap agreement is novated to the agreements related to the transaction. The use of currency to a central counterparty (the “CCP”) and the Fund faces the CCP swaps is a highly specialized activity that involves investment through a broker. Upon entering into a centrally cleared swap, the techniques and risks different from those associated with ordinary Fund is required to deposit initial margin with the broker in the portfolio securities transactions. If NTI or the Sub-Advisers are form of cash or securities in an amount that varies depending on incorrect in their forecasts of currency exchange rates, the the size and risk profile of the particular swap. Subsequent investment performance of a Fund would be less favorable than it payments, known as “variation margin,”are made or received by would have been if this investment technique were not used. the Fund based on the daily change in the value of the centrally cleared swap agreement. For centrally cleared swaps, the Fund’s Interest payments earned or charged under the terms of the counterparty credit risk is reduced as the CCP stands between the currency swap agreements are recorded as realized gain (loss) on Fund and the counterparty. currency swap agreements. The swap interest receivable or payable as of March 31, 2021, if any, is included as unrealized gains and For bilateral interest rate swap transactions that were outstanding losses on currency swap agreements on the Statements of Assets as of March 31, 2021, no collateral had been posted by either the and Liabilities of the Multi-Manager Emerging Markets Debt Multi-Manager Emerging Markets Debt Opportunity Fund or any Opportunity Fund. Unrealized appreciation (depreciation) on counterparty. For centrally cleared interest rate swap transactions currency swap agreements, if any, are included in the Statements

MULTI-MANAGER FUNDS 98 NORTHERN FUNDS ANNUAL REPORT MULTI-MANAGER FUNDS

MARCH 31, 2021

of Assets and Liabilities of the Multi-Manager Emerging Markets K) REDEMPTION FEES TheActiveMEmergingMarketsEquity, Debt Opportunity Fund, with corresponding changes in Active M International Equity, Multi-Manager Global Listed unrealized appreciation (depreciation) included in the Statements Infrastructure, Multi-Manager Global Real Estate, Northern of Operations. No currency swap agreements were held during the Engage360TM, Multi-Manager Emerging Markets Debt fiscal year ended March 31, 2021. Opportunity and Multi-Manager High Yield Opportunity Funds eachchargea2percentredemptionfeeontheredemptionof H) WHEN-ISSUED/DELAYED DELIVERY SECURITIES Certain Funds shares (including by exchange) held for 30 days or less. For the purchase securities with delivery or payment to occur at a later purpose of applying the fee, the Funds use a first-in, first-out date beyond the normal settlement period. At the time the Fund (“FIFO”) method so that shares held longest are treated as being enters into the commitment to purchase a security, the redeemed first and shares held shortest are treated as being transaction is recorded and the value of the commitment is redeemed last. The redemption fee is paid to the Fund from which reflected in the NAV. The value of the commitment may vary with the redemption is made and is intended to offset the trading, market fluctuations. No interest accrues to the Fund until market impact and other costs associated with short-term money settlement takes place. At the time the Fund enters into this type movements in and out of the Funds. The redemption fee may be of transaction, it is required to segregate collateral of cash or other collected by deduction from the redemption proceeds, or, if liquid assets having a fair value at least equal to the amount of the assessed after the redemption transaction, through a separate commitment. The Funds identify securities as segregated with a billing. The Funds are authorized to waive the redemption fee for valuethatmeetsorexceedsthevalueofthecommitment. certain types of redemptions as described in the Funds’ When-issued securities at March 31, 2021, if any, are noted in each prospectus. Fund’s Schedule of Investments and in aggregate as Payable for when-issued securities, in each Fund’s Statement of Assets and Redemption fees were approximately $6,000 for the fiscal year Liabilities. ended March 31, 2021, for the Multi-Manager Emerging Markets Debt Opportunity Fund. Redemption fees were less than $1,000 I) INVESTMENT TRANSACTIONS AND INCOME Investment for the fiscal year ended March 31, 2021, for the Active M transactions are recorded as of the trade date. The Funds Emerging Markets Equity, Active M International Equity, determine the gain or loss realized from investment transactions Multi-Manager Global Listed Infrastructure and Multi-Manager by using an identified cost basis method. Interest income is High Yield Opportunity Funds. There were no redemption fees recognized on an accrual basis and includes amortization of for the fiscal year ended March 31, 2021, for the Multi-Manager premiums and accretion of discounts using the effective yield Global Real Estate and Northern Engage360TM Funds. method. The interest rates reflected in the Schedules of Redemption fees were approximately $2,000 for the fiscal year Investments represent either the stated coupon rate, annualized ended March 31, 2020, for the Multi-Manager Emerging Markets yield on the date of purchase for discount notes, the current reset Debt Opportunity Fund. Redemption fees were less than $1,000 rate for floating rate securities, the 7-day yield for money market for the fiscal year ended March 31, 2020, for the Active M funds or, for interest-only or principal-only securities, the current Emerging Markets Equity, Active M International Equity, effective yield. Cost of investments includes amortization of Multi-Manager Global Listed Infrastructure and Multi-Manager premiums and accretion of discounts, if any. Dividend income, if High Yield Opportunity Funds. There were no redemption fees any, is recognized on the ex-dividend date. Dividends from for the fiscal year ended March 31, 2020, for the Multi-Manager foreign securities are recorded on the ex-dividend date, or as soon Global Real Estate and Northern Engage360TM Funds. These as the information is available. Distributions received from a amounts are included in Payments for Shares Redeemed Fund’s investments in real estate investment trusts (“REITs”) are in Note 8 – Capital Share Transactions. The impact from comprised of return of capital, capital gains and income. The redemption fees paid to each Fund was less than $0.001 per share actual character of the amounts received during the year is not for both fiscal years. known until the fiscal year-end. A Fund records the character of distributions received from the REITs during the year based on L) TERM LOANS The Multi-Manager High Yield Opportunity Fund estimates available. A Fund’s characterization may be may purchase assignments of, and participations in, term loans subsequently revised based on information received from the originated, negotiated and structured by a U.S. or foreign REITs after their tax reporting periods conclude. commercial bank, insurance company, finance company or other financial institution for a lending syndicate of financial J) EXPENSES Each Fund is charged for those expenses that are institutions (the “Lender”). When purchasing an assignment, the directly attributable to that Fund. Expenses incurred which do not Fund succeeds to all the rights and obligations under the loan specifically relate to an individual fund generally are allocated agreement with the same rights and obligations as the assigning among all funds in the Trust in proportion to each Fund’s relative Lender. Assignments may, however, be arranged through private net assets. Expenses are recognized on an accrual basis. negotiations between potential assignees and potential assignors, and the rights and obligations acquired by the purchaser of an assignment may differ from, and be more limited than, those held

NORTHERN FUNDS ANNUAL REPORT 99 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued

by the assigning Lender. The Fund may also enter into lending ACCUMULATED arrangements involving unfunded loan commitments, which are UNDISTRIBUTED UNDISTRIBUTED contractual obligations for future funding. Unfunded loan NET INVESTMENT NET REALIZED CAPITAL commitments may include revolving credit facilities, which may Amounts in thousands INCOME (LOSS) GAINS (LOSSES) STOCK obligate the Funds to supply additional cash to the borrower on Multi-Manager Global Listed demand. Unfunded loan commitments, if any, represent a future Infrastructure $ 82 $13,788 $(13,870) obligation, in full, and are recorded as a liability on the Statements Multi-Manager Global Real of Assets and Liabilities at fair value. Estate 2,298 (1,397) (901) Northern Engage360TM 755 (755) — M) DISTRIBUTIONS TO SHAREHOLDERS Distributions of Multi-Manager Emerging dividends from net investment income, if any, are declared and Markets Debt Opportunity (4,408) 4,408 — paid as follows: Multi-Manager High Yield Opportunity 206 (213) 7 DECLARATION AND PAYMENT FREQUENCY N) FEDERAL INCOME TAXES No provision for federal income taxes has been made since each Fund’s policy is to comply with the Active M Emerging Markets Equity Annually requirements of Subchapter M of the Internal Revenue Code of Active M International Equity Annually 1986, as amended (the “Code”), applicable to regulated Multi-Manager Global Listed Infrastructure Quarterly investment companies and to distribute, each year, substantially Multi-Manager Global Real Estate Quarterly all of its taxable income and capital gains to its shareholders. Northern Engage360TM Annually During the fiscal year ended March 31, 2021, the Northern Multi-Manager Emerging Markets Debt Opportunity Quarterly TM Engage360 Fund utilized approximately $7,803,000 in capital Multi-Manager High Yield Opportunity Monthly loss carryforwards. Distributions of net realized capital gains, if any, are declared and Capital losses incurred that will be carried forward indefinitely are paid at least annually. Distributions to shareholders are recorded as follows: on the ex-dividend date.

Income dividends and capital gains distributions are determined SHORT-TERM LONG-TERM CAPITAL LOSS CAPITAL LOSS in accordance with federal income tax regulations. Such amounts Amounts in thousands CARRYFORWARD CARRYFOWARD may differ from income and capital gains recorded in accordance with U.S. GAAP. Accordingly, the Funds may periodically make Multi-Manager Emerging Markets Debt reclassifications among certain of their capital accounts to reflect Opportunity $ — $ 8,925 differences between financial reporting and federal income tax Multi-Manager High Yield Opportunity 479 49,372 basis distributions. These reclassifications are reported in order to At November 30, 2020, the Multi-Manager Global Real Estate’s reflect the tax treatment for certain permanent differences that last tax year end, the non-expiring short-term and long-term exist between income tax regulations and U.S. GAAP. These capital losses were approximately $5,930,000 and $4,209,000, reclassifications may relate to paydowns, net operating losses, respectively. The Fund may offset future capital gains with these Section 988 currency gains and losses, Passive Foreign Investment capital loss carryforwards. Companies (“PFICs”) gains and losses, recharacterization of dividends received from investments in REITs, recharacterization At March 31, 2021, the tax components of undistributed net of distributions received from investments in master limited investment income, undistributed realized gains and unrealized partnerships (“MLPs”), expired capital loss carryforwards, and gainswereasfollows: gains or losses on in-kind transactions. These reclassifications have no impact on the total net assets or the NAVs per share of the UNDISTRIBUTED Funds. ORDINARY LONG-TERM UNREALIZED Amounts in thousands INCOME* CAPITAL GAINS GAINS (LOSSES) At March 31, 2021, the following reclassifications were recorded: Active M Emerging Markets Equity $23,771 $40,777 $ 86,552 ACCUMULATED UNDISTRIBUTED UNDISTRIBUTED Active M International Equity 12,354 15,600 147,224 NET INVESTMENT NET REALIZED CAPITAL Northern Engage360TM 2,273 5,544 88,396 Amounts in thousands INCOME (LOSS) GAINS (LOSSES) STOCK Multi-Manager Emerging Active M Emerging Markets Markets Debt Opportunity 1,015 — (9,344) Equity $914 $(914) $ — Active M International Equity 2,894 (2,894) —

MULTI-MANAGER FUNDS 100 NORTHERN FUNDS ANNUAL REPORT MULTI-MANAGER FUNDS

MARCH 31, 2021

UNDISTRIBUTED DISTRIBUTIONS FROM ORDINARY LONG-TERM UNREALIZED ORDINARY LONG-TERM RETURN OF Amounts in thousands INCOME* CAPITAL GAINS GAINS (LOSSES) Amounts in thousands INCOME* CAPITAL GAINS CAPITAL

Multi-Manager High Yield Multi-Manager High Yield Opportunity $ 633 $ — $ (1,400) Opportunity $20,934 $ — $—

* Ordinary income includes taxable market discount income and * Ordinary income includes taxable market discount income and short-term capital gains, if any. short-term capital gains, if any.

The tax components of undistributed net ordinary income, net The tax character of distributions paid during the Multi-Manager long-term capital gains and unrealized gains (losses) at Global Listed Infrastructure Fund’s tax years ended November 30, November 30, 2020, the Multi-Manager Global Listed 2020 and November 30, 2019 and Multi-Manager Global Real Infrastructure Fund’s and Multi-Manager Global Real Estate Estate Fund’s tax years ended November 30, 2020 and Fund’s last tax year end, were as follows: November 30, 2019 was designated for the purpose of the dividends paid deductions as follows: UNDISTRIBUTED ORDINARY LONG-TERM UNREALIZED NOVEMBER 30, 2020 AND Amounts in thousands INCOME* CAPITAL GAINS GAINS (LOSSES) NOVEMBER 30, 2019 DISTRIBUTIONS FROM Multi-Manager Global Listed ORDINARY LONG-TERM Infrastructure $1,584 $7,934 $58,814 Amounts in thousands INCOME* CAPITAL GAINS Multi-Manager Global Real Multi-Manager Global Listed Estate 1,431 — 14,101 Infrastructure (2020) $23,341 $ — * Ordinary income includes taxable market discount income and Multi-Manager Global Listed short-term capital gains, if any. Infrastructure (2019) 28,660 65,734 Multi-Manager Global Real Estate (2020) 3,978 — The tax character of distributions paid during the fiscal year 4,038 69 ended March 31, 2021, was as follows: Multi-Manager Global Real Estate (2019) * Ordinary income includes taxable market discount income and DISTRIBUTIONS FROM short-term capital gains, if any. ORDINARY LONG-TERM RETURN OF Amounts in thousands INCOME* CAPITAL GAINS CAPITAL The Multi-Manager Global Listed Infrastructure Fund and the Multi-Manager Global Real Estate Fund have a tax year end of Active M Emerging Markets Equity $ 4,000 $26,239 $— November 30th. Therefore, the tax character of distributions paid Active M International Equity 5,234 — — for the period December 1, 2020 through March 31, 2021 will be Northern Engage360TM 3,438 — — determined at the end of its tax year. Multi-Manager Emerging Markets Debt Opportunity 1,403 — — As of March 31, 2021, no Fund had uncertain tax positions that Multi-Manager High Yield would require financial statement recognition or disclosure. The Opportunity 12,426 — — Funds’ federal tax returns remain subject to examination by the Internal Revenue Service for three years after they are filed. * Ordinary income includes taxable market discount income and Interest or penalties incurred, if any, on future unknown, short-term capital gains, if any. uncertain tax positions taken by the Funds will be recorded as The tax character of distributions paid during the fiscal year Interest expense and Other expenses, respectively, on the ended March 31, 2020, was as follows: Statements of Operations.

O) OTHER RISKS Certain Funds may invest in emerging market DISTRIBUTIONS FROM securities. Additional risks are involved when a Fund invests its ORDINARY LONG-TERM RETURN OF assets in countries with emerging economies or securities markets. Amounts in thousands INCOME* CAPITAL GAINS CAPITAL These countries generally are located in the Asia and Pacific Active M Emerging Markets Equity $24,500 $20,900 $— regions, the Middle East, Eastern Europe, Central America, South Active M International Equity 20,146 30,000 — America and Africa. Political and economic structures in many of Northern Engage360TM 4,322 — — these countries may lack the social, political and economic stability characteristics of more developed countries. In general, Multi-Manager Emerging Markets Debt Opportunity 4,297 — — the securities markets of these countries are less liquid, subject to

NORTHERN FUNDS ANNUAL REPORT 101 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued greater price volatility and have smaller market capitalizations. As At a meeting held on August 19-20, 2020, the Board approved an a result, the risks presented by investments in these countries are agreement to replace the Credit Facility (as replaced, the “New heightened. Credit Facility”). The New Credit Facility is also in the amount of $250,000,000 and is also administered by Citibank, N.A. The The Multi-Manager Global Listed Infrastructure Fund invests in interest rate charged under the New Credit Facility is equal to the MLPs. The benefits derived from the Fund’s investment in MLPs sum of (i) the Federal Funds Rate plus (ii) if the one month is largely dependent on the MLPs being treated as partnerships for LIBOR on the date of borrowing exceeded such Federal Funds federal income tax purposes. If any of the MLPs held by the Fund Rate, the amount by which it so exceeded, plus (iii) 1.25 percent. were treated as corporations for U.S. federal income tax purposes, In addition, there is an annual commitment fee of 0.15 percent on the after-tax return to the Fund with respect to its investments in the unused portion of the credit line under the New Credit such MLPs would be materially reduced, causing a decline in the Facility, payable quarterly in arrears. The New Credit Facility went value of the common stock. The Fund must include its allocable into effect on November 16, 2020 and will expire on share of an MLP’s taxable income in its reportable taxable income, November 15, 2021, unless renewed. whetherornotitreceivesadistributionincashfromtheMLP.In such case, the Fund may have to liquidate securities to make During the fiscal year ended March 31, 2021, the following Funds required distributions to shareholders. had borrowings with the average loan amounts and weighted average interest rates as disclosed below: 3. SERVICE PLAN DOLLAR The Trust has adopted a Service Plan pursuant to which the Trust Amounts in thousands AMOUNT RATE may enter into agreements with Northern Trust, its affiliates or other institutions (together “Service Organizations”) under which Active M Emerging Markets Equity $15,167 1.37% the Service Organizations agree to provide certain administrative Active M International Equity 9,500 1.17 support services and, in some cases, personal and account Multi-Manager High Yield Opportunity 8,100 1.39 maintenance services for their customers, who are beneficial owners of shares of the Funds. As compensation for services No other Fund had any borrowings or incurred any interest provided pursuant to the Service Plan, the Service Organizations expenses during the fiscal year ended March 31, 2021. There were receive a fee at an annual rate of up to 0.15 percent of the average no outstanding loan amounts at March 31, 2021. daily net assets of the Funds beneficially owned by their customers. There were no shareholder servicing fees paid by the 5. MANAGEMENT AND OTHER AGREEMENTS Funds to Northern Trust or its affiliates during the fiscal year As compensation for advisory and administration services and the ended March 31, 2021. assumption of related expenses, NTI is entitled to a management fee, computed daily and payable monthly, at annual rates set forth Service Plan expenses, if any, are included in the Statements of in the table below (expressed as a percentage of each Fund’s Operations under Shareholder servicing fees for the fiscal year respective average daily net assets). ended March 31, 2021. NTI has contractually agreed to reimburse a portion of the 4. BANK BORROWINGS operating expenses (other than certain excepted expenses, i.e., The Trust and Northern Institutional Funds, a registered acquired fund fees and expenses, the compensation paid to each investment company also advised by NTI, jointly entered into a independent Trustee of the Trust, expenses of third-party $250,000,000 senior unsecured revolving credit facility on consultants engaged by the Board, membership dues paid to the November 18, 2019, which expired on November 16, 2020 and Investment Company Institute and Mutual Fund Directors was administered by Citibank, N.A., for liquidity and other Forum, expenses in connection with the negotiation and renewal purposes (the “Credit Facility”). The interest rate charged under of the revolving credit facility, extraordinary expenses and TM the Credit Facility was equal to the sum of (i) the Federal Funds interest) of each Fund except for the Northern Engage360 Rate plus (ii) if the one month London Interbank Offered Rate Fund, for which NTI has contractually agreed to reimburse a (“LIBOR”) on the date of borrowing exceeded such Federal Funds portion of operating expenses (other than acquired fund fees and Rate, the amount by which it so exceeded, plus (iii) 1.00 percent. extraordinary expenses) of the Fund, as shown on the In addition, there was an annual commitment fee of 0.15 percent accompanying Statements of Operations, to the extent the total on the unused portion of the credit line under the Credit Facility, annual fund operating expenses of the Funds exceed the expense payable quarterly in arrears, which is included in Other expenses limitations set forth below. The total annual fund operating on the Statements of Operations. expenses after expense reimbursement for each Fund may be higher than the contractual limitation as a result of certain excepted expenses that are not reimbursed. The amount of the

MULTI-MANAGER FUNDS 102 NORTHERN FUNDS ANNUAL REPORT MULTI-MANAGER FUNDS

MARCH 31, 2021 reimbursementisincludedinLessexpensesreimbursedby As of March 31, 2021, Axiom International Investors LLC, investment adviser as a reduction to Total Expenses in the Ashmore Investment Management Limited and Westwood Global Statements of Operations. Investments, LLC are the Sub-Advisers for the Active M Emerging Markets Equity Fund. At March 31, 2021, the annual management fees and contractual expense limitations for the Funds were based on the following As of March 31, 2021, Causeway Capital Management LLC, Polen annual rates as set forth in the table below. Capital Management, LLC, Victory Capital Management Inc., WCM Investment Management, LLC and Wellington CONTRACTUAL ANNUAL Management Company LLP are the Sub-Advisers for the Active M MANAGEMENT FEES CONTRACTUAL International Equity Fund. FIRST NEXT OVER EXPENSE $1 BILLION $1 BILLION $2 BILLION LIMITATIONS As of March 31, 2021, First Sentier Investors (Australia) IM Ltd., Active M Emerging Lazard Asset Management LLC and Maple-Brown Abbott Limited Markets Equity 1.08% 1.048% 1.017% 1.10% are the Sub-Advisers for the Multi-Manager Global Listed Active M International Infrastructure Fund. Equity 0.82% 0.795% 0.771% 0.84% As of March 31, 2021, Janus Capital Management, LLC and Multi-Manager Global Massachusetts Financial Services Company are the Sub-Advisers Listed Infrastructure 0.90% 0.873% 0.847% 1.00% for the Multi-Manager Global Real Estate Fund. Multi-Manager Global 0.89% 0.863% 0.837% 0.91% Real Estate As of March 31, 2021, Ariel Investments, LLC, Aristotle Capital Northern Management, LLC, ARK Investment Management, LLC, Earnest TM 0.68% 0.660% 0.640% 0.70% Engage360 Partners, LLC, Mar Vista Investment Partners, LLC and Strategic Global Advisors, LLC are the Sub-Advisers for Northern CONTRACTUAL ANNUAL TM MANAGEMENT FEES Engage360 Fund. CONTRACTUAL FIRST NEXT OVER EXPENSE $1.5 BILLION $1 BILLION $2.5 BILLION LIMITATIONS As of March 31, 2021, Ashmore Investment Management Limited and Global Evolution USA, LLC are the Sub-Advisers for the Multi-Manager Multi-Manager Emerging Markets Debt Opportunity Fund. Emerging Markets Debt As of March 31, 2021, DDJ Capital Management, LLC, Neuberger Opportunity 0.85% 0.825% 0.80% 0.93% Berman Investment Advisers LLC and Nomura Corporate Multi-Manager Research and Asset Management Inc. are the Sub-Advisers for High Yield Opportunity 0.83% 0.805% 0.781% 0.85% Multi-Manager High Yield Opportunity Fund.

The contractual reimbursement arrangements described above are NTI is responsible for payment of sub-advisory fees to these expected to continue until at least July 31, 2021. The contractual sub-advisers. reimbursement arrangements will continue automatically In addition, during the fiscal year ended March 31, 2021, NTI thereafter for periods of one year (each such one-year period, a reimbursed certain additional expenses that may be excepted “Renewal Year”). The arrangements may be terminated, as to any expenses. succeeding Renewal Year, by NTI or a Fund upon 60 days’ written notice prior to the end of the current Renewal Year. The Board As compensation for services rendered as transfer agent, including may terminate the contractual arrangements at any time with the assumption by Northern Trust of the expenses related thereto, respect to a Fund if it determines that it is in the best interest of Northern Trust receives a fee, computed daily and payable the Fund and its shareholders. monthly, at an annual rate of 0.0385 percent of the average daily net assets of each Fund. Pursuant to the Management Agreement with the Trust, NTI is responsible for performing and overseeing investment NTI has entered into a sub-administration agreement with management services to the Funds. In addition to selecting the Northern Trust, pursuant to which Northern Trust performs overall investment strategies of the Funds, NTI oversees and certain administrative services for the Funds. NTI pays Northern monitors the selection and performance of Sub-Advisers and Trust for its sub-administration services out of NTI’s management allocates resources among the Sub-Advisers. The Sub-Advisers fees. Northern Trust also performs certain administrative services manage each Fund’s investment portfolio pursuant to for certain Sub-Advisers pursuant to separate agreements with Sub-Advisory Agreements with NTI. such Sub-Advisers. For compensation as custodian, Northern Trust receives an amount based on a pre-determined schedule of charges approved by the Board. The Funds have entered into an

NORTHERN FUNDS ANNUAL REPORT 103 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued expense offset arrangement with the custodian whereby credits The Funds are permitted to purchase and sell securities from or to realized as a result of uninvested cash balances are used to reduce certain affiliated funds or portfolios under specified conditions a portion of the Funds’ custodian expenses, unless such outlined in Rule 17a-7 Procedures adopted by the Board. The uninvested cash balances receive a separate type of return. procedures have been designed to ensure that any purchase or sale of securities by a Fund from or to another fund or portfolio that is Northern Funds Distributors, LLC, the distributor for the Funds, or could be considered an affiliate by virtue of having a common received no compensation from the Funds under its distribution investment adviser (or affiliated investment advisers), common agreement. However, it received compensation from NTI for its trustees and/or common officers complies with Rule 17a-7 of the services as distributor pursuant to a separate letter agreement 1940 Act. Further, as defined under these procedures, each between it and NTI. transaction is effected at the current market price as defined in the Rule 17a-7 Procedures. For the fiscal year ended March 31, 2021, Certain officers of the Trust are also officers of Northern Trust the following Funds engaged in purchases and/or sales of and NTI. All officers serve without compensation from the Funds. securities from an affiliated entity: The Trust provided a deferred compensation plan for its Trustees who are not officers of Northern Trust or NTI. Prior to August 22, Amount in thousands PURCHASES SALES* 2013, under the deferred compensation plan, Trustees may have elected to defer all or a portion of their compensation. Effective Multi-Manager Global Listed Infrastructure $- $(1,875) August 22, 2013, the Trustees may no longer defer their Multi-Manager Global Real Estate - (63) compensation. Any amounts deferred and invested under the plan Multi-Manager Emerging Markets Debt Opportunity -(171) shall remain invested pursuant to the terms of the plan. Each Trustee’s account shall be deemed to be invested in shares of the * During the fiscal year ended March 31, 2021, the realized gains U.S. Government Portfolio of Northern Institutional Funds (losses) associated with these transactions were approximately and/or the Global Tactical Asset Allocation Fund of the Trust $21,000, $13,000 and $(13,000), respectively. and/or at the discretion of the Trust, another money market fund During the fiscal year ended March 31, 2021, the Active M selected by the Trust that complies with the provisions of Emerging Markets Equity and the Active M International Equity Rule 2a-7 under the 1940 Act or one or more short-term fixed Funds received reimbursements from The NorthernTrust income instruments selected by the Trust that are “eligible Company of approximately $41,000 and $26,000, respectively, in securities” as defined by that rule. The net investment income, connection with an error. These reimbursements are included in gains and losses achieved by such deemed investment shall be Net investment income in the Statements of Operations and credited to the Trustee’s account as provided in the plan. Statements of Changes in Net Assets and in Net investment income in the Financial Highlights. These cash contributions 6. RELATED PARTY TRANSACTIONS represents less than $0.01 per share for each of the Funds. Each Fund may invest its uninvested cash in a money market fund advised by NTI or its affiliates. Accordingly, each Fund bears During the fiscal year ended March 31, 2021, the Multi-Manager indirectly a proportionate share of that money market fund’s Emerging Markets Debt Opportunity Fund received operating expenses. These operating expenses include the reimbursements from The Northern Trust Company of management, transfer agent and custody fees that the money approximately $114,000 in connection with errors. These market fund pays to NTI and/or its affiliates. At March 31, 2021, reimbursements are included in Net investment income and Net the uninvested cash of the Funds is invested in the Northern realized gains on investments in the Statements of Operations and Institutional Funds U.S. Government Portfolio (the “Portfolio”). Statements of Changes in Net Assets and in Net investment The total annual portfolio operating expenses after expense income and Net realized and unrealized gain in the Financial reimbursement (other than certain excepted expenses as described Highlights. These cash contributions represent less than $0.01 per in the fees and expenses table of the Portfolio’s prospectus) on any share and had no effect on the Fund’s total return. assets invested in the Portfolio is 0.25%. For the fiscal year ended During the fiscal year ended March 31, 2021, the Active M March 31, 2021, NTI reimbursed each Fund for a portion of the Emerging Markets Equity, Active M International Equity, management fees attributable to and payable by the Funds for Multi-Manager Global Listed Infrastructure, Multi-Manager advisory services on any assets invested in an affiliated money Global Real Estate and Northern Engage360TM Funds received market fund. This reimbursement is included in Less expenses reimbursements from Northern Trust Investments, Inc. of reimbursed by the investment adviser as a reduction to Total approximately $3,000, $6,000, $5,000, $1,000 and $1,000, Expenses in the Statements of Operations. This reimbursement’s respectively, in connection with errors. These reimbursements are impact on each Fund’s net expense and net investment income included in Net realized gains on investments in the Statements of ratios is included in each Fund’s Financial Highlights. Operations and Statements of Changes in Net Assets and in Net

MULTI-MANAGER FUNDS 104 NORTHERN FUNDS ANNUAL REPORT MULTI-MANAGER FUNDS

MARCH 31, 2021 realized and unrealized gain in the Financial Highlights. These At March 31, 2021, for federal income tax purposes, gross cash contributions represent less than $0.01 per share for each of unrealized appreciation, gross unrealized depreciation, net the Funds and had no effect on the Funds’ total return. unrealized appreciation (depreciation) on investments (including the effects of foreign currency translation and derivative 7. INVESTMENT TRANSACTIONS instruments, if any) and the cost basis of investments (including derivative instruments, if any) were as follows: For the fiscal year ended March 31, 2021, the aggregate costs of purchases and proceeds from sales of securities (excluding NET COST short-term investments) for the Funds were as follows: Amounts in UNREALIZED UNREALIZED APPRECIATION BASIS OF thousands APPRECIATION DEPRECIATION (DEPRECIATION) INVESTMENTS PURCHASES SALES Active M Amounts in thousands U.S. GOVERNMENT OTHER U.S. GOVERNMENT OTHER Emerging Markets Active M Emerging Equity $ 93,433 $ (5,906) $ 87,527 $ 353,242 Markets Equity $— $497,548 $— $574,347 Active M Active M International International Equity — 292,361 — 437,289 Equity 163,244 (16,029) 147,215 531,561 Multi-Manager Global Multi-Manager Listed Infrastructure — 656,779 — 605,421 Global Listed Multi-Manager Global Infrastructure 103,122 (11,425) 91,697 1,066,888 Real Estate — 169,820 — 116,938 Multi-Manager Northern Global Real Engage360TM — 142,268 — 130,079 Estate 22,488 (771) 21,717 158,058 Multi-Manager Northern Emerging Markets Engage360TM 94,572 (6,135) 88,437 309,633 — 107,546 — 113,582 Debt Opportunity Multi-Manager Multi-Manager High Emerging Yield Opportunity — 160,639 — 226,663 Markets Debt Opportunity 4,710 (14,019) (9,309) 151,482 The difference between book basis and tax basis net unrealized Multi-Manager appreciation (depreciation) is attributable primarily to the tax High Yield deferral of losses on wash sales, the realization for tax purposes of Opportunity 9,096 (10,496) (1,400) 176,188 unrealized gains on certain foreign currency contracts, the deferral of post-October currency and capital losses for tax purposes, and the timing of income recognition on investments in REITs and PFICs.

8. CAPITAL SHARE TRANSACTIONS Transactions in capital shares for the fiscal year ended March 31, 2021, were as follows:

NET NET PROCEEDS SHARES FROM REINVESTMENTS PAYMENTS INCREASE INCREASE SHARES FROM REINVESTED OF SHARES FOR SHARES (DECREASE) (DECREASE) Amounts in thousands SOLD SHARES SOLD DIVIDENDS DIVIDENDS REDEEMED REDEEMED IN SHARES IN NET ASSETS

Active M Emerging Markets Equity 5,834 $120,232 973 $20,766 (10,179) $(191,968) (3,372) $ (50,970) Active M International Equity 3,960 43,992 32 386 (19,679) (189,286) (15,687) (144,908) Multi-Manager Global Listed Infrastructure 29,534 345,544 878 10,586 (25,522) (301,788) 4,890 54,342 Multi-Manager Global Real Estate 7,697 75,039 107 1,118 (3,234) (32,243) 4,570 43,914 Northern Engage360TM 1,234 15,212 258 3,325 (118) (1,491) 1,374 17,046 Multi-Manager Emerging Markets Debt Opportunity 3,969 34,263 145 1,337 (5,254) (47,386) (1,140) (11,786) Multi-Manager High Yield Opportunity 8,450 72,243 389 3,454 (17,165) (147,093) (8,326) (71,396)

NORTHERN FUNDS ANNUAL REPORT 105 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued

Transactions in capital shares for the fiscal year ended March 31, 2020, were as follows:

NET NET PROCEEDS SHARES FROM REINVESTMENTS PAYMENTS INCREASE INCREASE SHARES FROM REINVESTED OF SHARES FOR SHARES (DECREASE) (DECREASE) Amounts in thousands SOLD SHARES SOLD DIVIDENDS DIVIDENDS REDEEMED REDEEMED IN SHARES IN NET ASSETS

Active M Emerging Markets Equity 2,498 $ 45,618 1,042 $20,404 (22,251) $(411,326) (18,711) $(345,304) Active M International Equity 2,278 23,012 2,096 22,952 (23,554) (229,013) (19,180) (183,049) Multi-Manager Global Listed Infrastructure 21,219 260,169 706 8,607 (19,959) (237,382) 1,966 31,394 Multi-Manager Global Real Estate 3,817 37,902 219 2,487 (1,556) (16,807) 2,480 23,582 Northern Engage360TM 4,871 50,140 392 4,307 (187) (1,894) 5,076 52,553 Multi-Manager Emerging Markets Debt Opportunity 3,922 36,789 489 3,942 (6,254) (57,850) (1,843) (17,119) Multi-Manager High Yield Opportunity 8,944 79,883 464 4,288 (20,816) (192,228) (11,408) (108,057)

9. INVESTMENTS IN AFFILIATES Transactions in affiliated investments for the fiscal year ended March 31, 2021, were as follows:

NET CHANGE NET IN UNREALIZED REALIZED Amounts in thousands VALUE, BEGINNING SALES APPRECIATION GAINS DIVIDEND VALUE, END SHARES, END except shares AFFILIATE OF YEAR PURCHASES PROCEEDS (DEPRECIATION) (LOSSES) INCOME OF YEAR OF YEAR

Northern Institutional Funds - Active M Emerging U.S. Government Markets Equity Portfolio (Shares) $10,656 $415,628 $ 410,139 $ — $ — $ 5 $16,145 16,144,670 Northern Institutional Funds - Active M International U.S. Government Equity Portfolio (Shares) — 320,876 302,761 — — 9 18,115 18,114,751 Northern Institutional Funds - Multi-Manager Global U.S. Government Listed Infrastructure Portfolio (Shares) 30,334 614,618 602,911 — — 25 42,041 42,041,298 Northern Institutional Funds - Multi-Manager Global U.S. Government Real Estate Portfolio (Shares) 8,005 107,475 111,577 — — 4 3,903 3,902,911 Northern Institutional Funds - Northern U.S. Government Engage360TM Portfolio (Shares) 9,878 85,885 77,865 — — 5 17,898 17,897,651 Northern Institutional Multi-Manager Funds - Emerging Markets U.S. Government Debt Opportunity Portfolio (Shares) 5,081 117,183 116,583 — — 4 5,681 5,681,033 Northern Institutional Funds - Multi-Manager High U.S. Government Yield Opportunity Portfolio (Shares) 11,591 322,391 325,979 — — 5 8,003 8,003,351

10. DERIVATIVE INSTRUMENTS Information concerning the types of derivatives in which the Funds invest, the objectives for using them and their related risks can be found in Note 2.

MULTI-MANAGER FUNDS 106 NORTHERN FUNDS ANNUAL REPORT MULTI-MANAGER FUNDS

MARCH 31, 2021

Below are the types of derivatives by primary risk exposure as presented in the Statements of Assets and Liabilities as of March 31, 2021:

ASSETS LIABILITIES STATEMENTS OF STATEMENTS OF Amounts in thousands CONTRACT TYPE ASSETS LOCATION VALUE LIABILITIES LOCATION VALUE

Active M Emerging Markets Equity Equity contracts Net Assets - Net unrealized Net Assets - Net unrealized appreciation $—depreciation $ (28)* Active M International Equity Equity contracts Net Assets - Net unrealized Net Assets - Net unrealized appreciation — depreciation (12)* Multi-Manager Global Listed Equity contracts Net Assets - Net unrealized Net Assets - Net unrealized Infrastructure appreciation 106* depreciation (28)* Northern Engage360TM Equity contracts Net Assets - Net unrealized Net Assets - Net unrealized appreciation 82* depreciation (27)* Foreign exchange contracts Unrealized appreciation on Unrealized depreciation on forward foreign currency exchange forward foreign currency exchange contracts 221 contracts (90) Multi-Manager Emerging Markets Foreign exchange contracts Unrealized appreciation on Unrealized depreciation on Debt Opportunity forward foreign currency exchange forward foreign currency exchange contracts 162 contracts (600) Interest rate contracts Net Assets - Net unrealized Net Assets - Net unrealized appreciation — depreciation 75** Interest rate contracts Unrealized appreciation on Unrealized depreciation on bilateral interest rate swap bilateral interest rate swap agreements 14 agreements —

* Includes cumulative appreciation/depreciation on futures contracts as reported in the Schedules of Investments’ footnotes. Only the current day’s variation margin is reported within the Statements of Assets and Liabilities. ** Includes cumulative appreciation/depreciation on centrally cleared swap agreements as reported in the Schedule of Investments’ footnotes. Only the current day’s variation margin, if any, is reported within the Statements of Assets and Liabilities.

The Funds may enter into transactions subject to enforceable netting agreements or other similar arrangements (“netting agreements”). Generally, netting agreements allow the Funds to offset any exposure to a specific counterparty with any collateral received or delivered to that counterparty based on the terms of the agreements. Generally, the Funds manage their cash collateral and securities collateral on a counterparty basis. In the event of default where the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the defaulting party, realization of collateral by the Funds may be delayed or limited. In addition, the netting agreements provide the right for the non-defaulting party to liquidate the collateral and calculate the net exposure to the defaulting party or request additional collateral.

As of March 31, 2021, gross amounts of assets and liabilities for forward foreign exchange contracts and swap agreements not offset in the Statements of Assets and Liabilities, related collateral and net amounts after taking into account netting agreements, by counterparty, are as follows:

GROSS AMOUNTS NOT OFFSET IN THE STATEMENTS OF ASSETS AND LIABILITIES GROSS AMOUNTS OF ASSETS CASH PRESENTED IN STATEMENTS OF FINANCIAL COLLATERAL NET Amounts in thousands COUNTERPARTY ASSETS AND LIABILITIES INSTRUMENTS RECEIVED AMOUNT

Northern Engage360TM JPMorgan Chase $221 $(90) $ — $131

Multi-Manager Emerging Markets Debt Opportunity Barclays $ 2 $ (2) $ — $ — BNP 34 (34) — — Citibank 23 (23) — — JPMorgan Chase 57 (57) — — Merrill Lynch 16 (16) — — Morgan Stanley 21 (13) — 8 Santander 4 (2) — 2

NORTHERN FUNDS ANNUAL REPORT 107 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued

GROSS AMOUNTS NOT OFFSET IN THE STATEMENTS OF ASSETS AND LIABILITIES GROSS AMOUNTS OF ASSETS CASH PRESENTED IN STATEMENTS OF FINANCIAL COLLATERAL NET Amounts in thousands COUNTERPARTY ASSETS AND LIABILITIES INSTRUMENTS RECEIVED AMOUNT

Standard Chartered Bank $ 19 $ (19) $ — $ —

Total $176 $(166) $ — $ 10

GROSS AMOUNTS NOT OFFSET IN THE STATEMENTS OF ASSETS AND LIABILITIES GROSS AMOUNTS OF LIABILITIES CASH PRESENTED IN STATEMENTS OF FINANCIAL COLLATERAL NET Amounts in thousands COUNTERPARTY ASSETS AND LIABILITIES INSTRUMENTS PLEDGED AMOUNT

Northern Engage360TM JPMorgan Chase $ (90) $ 90 $ — $ —

Multi-Manager Emerging Markets Debt Opportunity Barclays $ (75) $ 2 $ — $ (73) BNP (192) 34 158 — Citibank (62) 23 — (39) JPMorgan Chase (90) 57 33 — Merrill Lynch (58) 16 42 — Morgan Stanley (13) 13 — — Santander (2) 2 — — Standard Chartered Bank (108) 19 — (89)

Total $(600) $166 $233 $(201)

The following tables set forth, by primary risk exposure, the Funds’ realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the fiscal year ended March 31, 2021:

AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVE CONTRACTS Amounts in thousands CONTRACT TYPE STATEMENTS OF OPERATIONS LOCATION VALUE

Active M Emerging Markets Equity Equity contracts Net realized gains (losses) on futures contracts $3,932 Active M International Equity Equity contracts Net realized gains (losses) on futures contracts 5,717 Multi-Manager Global Listed Infrastructure Equity contracts Net realized gains (losses) on futures contracts 10,767 Northern Engage360TM Equity contracts Net realized gains (losses) on futures contracts 2,874 Foreign exchange contracts Net realized gains (losses) on forward foreign currency exchange contracts 360 Multi-Manager Emerging Markets Debt Opportunity Foreign exchange contracts Net realized gains (losses) on forward foreign currency exchange contracts 827 Interest rate contracts Net realized gains (losses) on interest rate swap agreements 45

CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVE CONTRACTS Amounts in thousands CONTRACT TYPE STATEMENTS OF OPERATIONS LOCATION VALUE

Active M Emerging Markets Equity Equity contracts Net change in unrealized appreciation (depreciation) on futures contracts $(219) Active M International Equity Equity contracts Net change in unrealized appreciation (depreciation) on futures contracts (228) Multi-Manager Global Listed Infrastructure Equity contracts Net change in unrealized appreciation (depreciation) on futures contracts 38 Northern Engage360TM Equity contracts Net change in unrealized appreciation (depreciation) on futures contracts (182) Foreign exchange contracts Net change in unrealized appreciation (depreciation) on forward foreign currency exchange contracts 605

MULTI-MANAGER FUNDS 108 NORTHERN FUNDS ANNUAL REPORT MULTI-MANAGER FUNDS

MARCH 31, 2021

CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVE CONTRACTS Amounts in thousands CONTRACT TYPE STATEMENTS OF OPERATIONS LOCATION VALUE

Multi-Manager Emerging Markets Debt Opportunity Foreign exchange contracts Net change in unrealized appreciation (depreciation) on forward foreign currency exchange contracts $54 Interest rate contracts Net change in unrealized appreciation (depreciation) on interest rate swap agreements (113)

Volume of derivative activity for the fiscal year ended March 31, 2021*:

FOREIGN EXCHANGE EQUITY INTEREST RATE CONTRACTS CONTRACTS CONTRACTS NUMBER AVERAGE NUMBER AVERAGE NUMBER AVERAGE OF NOTIONAL OF NOTIONAL OF NOTIONAL TRADES AMOUNT** TRADES AMOUNT** TRADES AMOUNT**

Active M Emerging Markets Equity —$— 99$1,798— $— Active M International Equity — — 68 2,821 — — Multi-Manager Global Listed Infrastructure ——2611,510—— Northern Engage360TM 152 3,131 102 485 — — Multi-Manager Emerging Markets Debt Opportunity 1,018 101,904 — — 12 682

* Activity for the fiscal year is measured by number of trades during the fiscal year and average notional amount for forward foreign currency exchange, futures equity, swap interest rate contracts.

** Amounts in thousands.

11. INDEMNIFICATIONS AND WARRANTIES 13. LIBOR TRANSITION In the ordinary course of their business, the Funds may enter into Certain of the Funds’ investments, payment obligations and contracts or agreements that contain indemnifications or financing terms may be based on floating rates, such as LIBOR, warranties. Future events could occur that lead to the execution of Euro Interbank Offered Rate and other similar types of reference these provisions against the Funds. The maximum exposure to the rates (each, a “Reference Rate”). On July 27, 2017, the Chief Funds under these provisions is unknown, as this would involve Executive of the UK Financial Conduct Authority (“FCA”), which future claims that have not yet occurred. However, the Funds have regulates LIBOR, announced that the FCA will no longer persuade not had prior claims or losses pursuant to these contracts and nor compel banks to submit rates for the calculation of LIBOR believe the risk of loss to be remote. and certain other Reference Rates after 2021. The FCA and ICE Benchmark Administrator have since announced that most 12. NEW ACCOUNTING PRONOUNCEMENTS LIBOR settings will no longer be published after December 31, 2021 and a majority of U.S. dollar LIBOR settings will cease In March 2020, the FASB issued Accounting Standards Update publication after June 30, 2023. The U.S. Federal Reserve, based (ASU) 2020-04, Reference Rate Reform (Topic 848) “Facilitation on the recommendations of the New York Federal Reserve’s of the Effects of Reference Rate Reform on Financial Reporting” Alternative Reference Rate Committee (comprised of major (“ASU 2020-04”), which provides optional temporary financial derivative market participants and their regulators), has begun reporting relief from the effect of certain types of contract publishing SOFR that is intended to replace U.S. dollar LIBOR. modifications due to the planned discontinuation of the LIBOR Proposals for alternative reference rates for other currencies have and other interbank-offered based reference rates as of the end of also been announced or have already begun publication. 2021. The new guidance is effective for certain reference Uncertainty related to the liquidity impact of the change in rates, rate-related contract modifications that occur during the period and how to appropriately adjust these rates at the time of March 12, 2020 through December 31, 2022, and the adoption of transition, poses risks for the Funds. The effect of any changes to, ASU 2020-04 is elective. Management does not believe this update or discontinuation of, LIBOR on the Funds will depend on, has a material impact on the Funds’ financial statements and among other things, (1) existing fallback or termination disclosures. provisions in individual contracts and (2) whether, how, and when industry participants develop and adopt new reference rates and fallbacks for both legacy and new instruments and contracts. The expected discontinuation of LIBOR could have a significant impact on the financial markets in general and may also present

NORTHERN FUNDS ANNUAL REPORT 109 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued MARCH 31, 2021 heightened risk to market participants, including public companies, investment advisers, investment companies, and broker-dealers. The risks associated with this discontinuation and transition will be exacerbated if the work necessary to effect an orderlytransitiontoanalternativereferencerateisnotcompleted in a timely manner. Accordingly, it is difficult to predict the full impact of the transition away from LIBOR on the Funds until new reference rates and fallbacks for both legacy and new instruments and contracts are commercially accepted and market practices become settled.

14. CORONAVIRUS (COVID-19) PANDEMIC An outbreak of respiratory disease caused by a novel coronavirus was first detected in December 2019 and has spread interna- tionally. The outbreak and efforts to contain its spread have resulted in closing borders and quarantines, restricting international and domestic travel, enhanced health screenings, cancelations, disrupted supply chains and customer activity, responses by businesses (including changes to operations and reducing staff), and have produced general concern and uncertainty. The impact of the coronavirus pandemic, and other epidemics and pandemics that may arise in the future could adversely affect national and global economies, individual companies and the market in general in a manner and for a period of time that cannot be foreseen at the present time and may adversely affect the value, volatility and liquidity of dividend and interest paying securities. In the event of a pandemic or an outbreak, there can be no assurance that the Funds and their service providers will be able to maintain normal business operations for an extended period of time or will not lose the services of key personnel on a temporary or long-term basis due to illness or other reasons, and could otherwise disrupt the ability of the Funds’ service providers to perform essential services. Certain economic and market conditions arising out of a pandemic or outbreak could result in a Fund’s inability to achieve its investment objectives, cause the postponement of reconstitution or rebalance dates for benchmark indices, adversely affect the prices and liquidity of the securities and other instruments in which a Fund invests, negatively impact a Fund’s performance, and cause losses on your investment in a Fund. Management is monitoring the development of the pandemic, which was ongoing as of the date of the financial statements, and is evaluating its impact on the financial position and operating results of the Funds.

15. SUBSEQUENT EVENTS Management has evaluated subsequent events for the Funds through the date the financial statements were issued, and has concluded that there are no recognized or non-recognized subsequent events relevant for financial statement disclosure.

MULTI-MANAGER FUNDS 110 NORTHERN FUNDS ANNUAL REPORT MULTI-MANAGER FUNDS

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

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 seven separate portfolios of Northern Funds, comprising the Active M Emerging Markets Equity Fund, Active M International Equity Fund, Multi-Manager Global Listed Infrastructure Fund, Multi-Manager Global Real Estate Fund, Northern Engage360TM Fund, Multi-Manager Emerging Markets Debt Opportunity Fund, and Multi-Manager High Yield Opportunity Fund (collectively, the “Funds”), including the schedules of investments, as of March 31, 2021, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended for Active M Emerging Markets Equity Fund, Active M International Equity Fund, Multi-Manager Global Listed Infrastructure Fund, Multi-Manager Global Real Estate Fund, Multi-Manager Emerging Markets Debt Opportunity Fund and Multi-Manager High Yield Opportunity Fund; the related statement of operations for the year ended March 31, 2021, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the three years in the period then ended and the period from November 20, 2017 (commencement of operations) through March 31, 2018 for Northern Engage360TM Fund; and the related notes.

In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of Active M Emerging Markets Equity Fund, Active M International Equity Fund, Multi-Manager Global Listed Infrastructure Fund, Multi-Manager Global Real Estate Fund, Multi-Manager Emerging Markets Debt Opportunity Fund, and Multi-Manager High Yield Opportunity Fund as of March 31, 2021, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of Northern Engage360TM Fund as of March 31, 2021, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the three years in the period then ended and for the period from November 20, 2017 (commencement of operations) through March 31, 2018, in conformity 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 express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of March 31, 2021, by correspondence with the custodian, agent banks, and brokers; when replies were not received from agent banks or brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ DELOITTE & TOUCHE LLP

Chicago, Illinois May 25, 2021

We have served as the auditor of one or more Northern Trust investment companies since 2002.

NORTHERN FUNDS ANNUAL REPORT 111 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS

TAX INFORMATION MARCH 31, 2021 (UNAUDITED)

CAPITAL GAIN DISTRIBUTION — The following Funds made QUALIFIED DIVIDEND INCOME (QDI) — Under the Jobs and capital gain distributions in December 2020, and hereby Growth Tax Relief Reconciliation Act of 2003 (the “Act”), the designated these long-term capital gain distributions as follows following percentages of ordinary dividends paid during the fiscal (per share): year ended March 31, 2021, are designated as “qualified dividend income,”as defined in the Act, subject to reduced tax rates in LONG-TERM 2020: CAPITAL GAIN

Active M Emerging Markets Equity $1.319739 QDI PERCENTAGE Multi-Manager Global Listed Infrastructure 0.037874 Active M Emerging Markets Equity 100.00% CORPORATE DIVIDENDS-RECEIVED DEDUCTION (DRD) —A Active M International Equity 100.00% percentage of the dividends distributed during the fiscal year Northern Engage360TM 100.00% ended March 31, 2021 for the following Funds qualifies for the dividends-received deduction for corporate shareholders: Under the Act, the following percentages of ordinary dividends paid during the calendar year ended December 31, 2020, are CORPORATE DRD designated as “qualified dividend income,”as defined in the Act, PERCENTAGE subject to reduced tax rates in 2020: Active M Emerging Markets Equity 0.50% Active M International Equity 0.73% QDI PERCENTAGE Northern Engage360TM 54.22% Multi-Manager Global Listed Infrastructure 100.00% A percentage of the dividends distributed during the calendar year Multi-Manager Global Real Estate 22.84% ended December 31, 2020 for the following Funds qualifies for the dividends-received deduction for corporate shareholders:

CORPORATE DRD PERCENTAGE

Multi-Manager Global Listed Infrastructure 43.25% Multi-Manager Global Real Estate 0.02%

FOREIGN TAX CREDIT — The Funds below intend to make an election that will allow shareholders to treat their proportionate share of foreign taxes paid by the Funds as having been paid by them. The amounts per share which represent income from sources within, and taxes paid to, foreign countries are as follows:

TAXES INCOME

Active M Emerging Markets Equity $0.0398 $0.1882 Active M International Equity 0.0096 0.1266 Multi-Manager Global Listed Infrastructure 0.0142 0.5655

LONG-TERM CAPITAL GAIN — The following Fund designated the below amount as long-term capital gains, pursuant to Section 852 of the Internal Revenue Code, for the fiscal year ended March 31, 2021:

LONG-TERM Amounts in thousands CAPITAL GAIN

Active M Emerging Markets Equity $40,777 Active M International Equity 15,600 Northern Engage360TM 5,544

MULTI-MANAGER FUNDS 112 NORTHERN FUNDS ANNUAL REPORT MULTI-MANAGER FUNDS

LIQUIDITY RISK MANAGEMENT PROGRAM MARCH 31, 2021 (UNAUDITED)

Each Fund has adopted and implemented a Liquidity Risk There can be no assurance that the Program will achieve its Management Program (the “Program”) as required by rule 22e-4 objectives under all circumstances in the future. Please refer to under the Investment Company Act of 1940. The Program seeks your Fund’s prospectus for more information regarding the to assess, manage and review each Fund’s Liquidity Risk. Fund’s exposure to liquidity risk and other risks to which it may “Liquidity Risk” is defined as the risk that a Fund could not meet be subject. requests to redeem shares issued by the Fund without significant dilution of remaining investors’ interest in the Fund.

The Board has appointed Northern Trust Investments, Inc. (“NTI”), the investment adviser to the Funds, as the program administrator for the Program. NTI has delegated oversight of the Program to the Northern Trust Asset Management Credit & Liquidity Risk Committee (the “Committee”).

At a meeting held on November 18-19, 2020, the Board received and reviewed the annual written report of the Committee, on behalf of NTI (the “Report”), concerning the operation of the Program for the period from October 1, 2019 to September 30, 2020 (the “Reporting Period”). The Report addressed the operation of the Program and assessed its adequacy and effectiveness of implementation.

The Report summarized the operation of the Program and the information and factors considered by the Committee in reviewing the adequacy and effectiveness of the Program’s implementation with respect to each Fund. Such information and factors included, among other things: (i) the liquidity risk framework used to assess, manage, and periodically review each Fund’s liquidity risk and the results of the assessment; (ii) the methodology and inputs used to classify the liquidity of each Fund’s portfolio investments and the Committee’s assessment that each Fund’s strategy is appropriate for an open-end mutual fund; (iii) that each Fund held primarily highly liquid assets (investments that the Fund anticipates can be converted to cash within 3 business days or less in current market conditions without significantly changing their market value); (iv) that none of the Funds required the establishment of a highly liquid investment minimum and the methodology for that determination; (v) confirmation that none of the Funds had breached the 15% maximum illiquid security threshold (investments that cannot be sold or disposed of in seven days or less in current market conditions without the sale of the investment significantly changing the market value of the investment) and the procedures for monitoring compliance with the limit; and (vi) historical information regarding redemptions and shareholder concentration in each Fund. The Report also summarized the changes made to the Program over the course of the year.

Based on the review, the Report concluded that the Program was being effectively implemented and that the Program was reasonably designed to assess and manage each Fund’s liquidity risk.

NORTHERN FUNDS ANNUAL REPORT 113 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS

FUND EXPENSES

As a shareholder of the Funds, you incur two types of costs: Yield Opportunity Funds. If these fees were included, your costs (1) transaction costs, if any, including redemption fees on certain would have been higher. The information also does not reflect exchanges and redemptions in the Active M Emerging Markets reimbursements of advisory fees incurred in connection with the Equity, Active M International Equity, Multi-Manager Global investment of uninvested cash in affiliated money market funds Listed Infrastructure, Multi-Manager Global Real Estate, Northern (See page 104), which may result in different expense ratios in the Engage360TM, Multi-Manager Emerging Markets Debt Financial Highlights. Therefore, the hypothetical information is Opportunity and Multi-Manager High Yield Opportunity Funds; useful in comparing ongoing costs only, and will not help you and (2) ongoing costs, including management fees and other fund determine the relative total costs of owning different funds. expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to ACTIVE M EMERGING MARKETS EQUITY compare these costs with the ongoing costs of investing in other BEGINNING ENDING EXPENSES mutual funds. ACCOUNT ACCOUNT PAID* EXPENSE VALUE VALUE 10/1/2020- SHARES RATIO 10/1/2020 3/31/2021 3/31/2021 The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, October 1, Actual 1.10% $1,000.00 $1,228.00 $6.11 2020 through March 31, 2021. Hypothetical 1.10% $1,000.00 $1,019.45 $5.54

ACTIVE M INTERNATIONAL EQUITY ACTUAL EXPENSES BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT PAID* The first line of the tables below provides information about EXPENSE VALUE VALUE 10/1/2020- actual account values and actual expenses. You may use the SHARES RATIO 10/1/2020 3/31/2021 3/31/2021 information in this line, together with the amount you invested, Actual 0.85% $1,000.00 $1,236.80 $4.74 to estimate the expenses that you paid over the period. Simply Hypothetical 0.85% $1,000.00 $1,020.69 $4.28 divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by MULTI-MANAGER GLOBAL LISTED INFRASTRUCTURE the number in the first line under the heading entitled Expenses BEGINNING ENDING EXPENSES Paid 10/1/2020 - 3/31/2021 to estimate the expenses you paid on ACCOUNT ACCOUNT PAID* EXPENSE VALUE VALUE 10/1/2020- your account during this period. SHARES RATIO 10/1/2020 3/31/2021 3/31/2021 Actual 0.96% $1,000.00 $1,126.80 $5.09 HYPOTHETICAL EXAMPLE FOR COMPARISON Hypothetical 0.96% $1,000.00 $1,020.14 $4.84 PURPOSES MULTI-MANAGER GLOBAL REAL ESTATE The second line in the tables below provides information about BEGINNING ENDING EXPENSES hypothetical account values and hypothetical expenses based on ACCOUNT ACCOUNT PAID* the Funds’ actual expense ratios and an assumed rate of return of EXPENSE VALUE VALUE 10/1/2020- 5 percent per year before expenses, which is not the Funds’ actual SHARES RATIO 10/1/2020 3/31/2021 3/31/2021 return. The hypothetical account values and expenses may not be Actual 0.93% $1,000.00 $1,154.70 $5.00 used to estimate the actual ending account balance or expenses Hypothetical 0.93% $1,000.00 $1,020.29 $4.68 you paid for the period. You may use this information to compare TM the ongoing costs of investing in the Funds and other funds. To do NORTHERN ENGAGE360 so, compare this 5 percent hypothetical example with the 5 BEGINNING ENDING EXPENSES percent hypothetical examples that appear in the shareholder ACCOUNT ACCOUNT PAID* EXPENSE VALUE VALUE 10/1/2020- reports of the other funds. SHARES RATIO 10/1/2020 3/31/2021 3/31/2021

Please note that the expenses shown in the tables are meant to Actual 0.70% $1,000.00 $1,209.70 $3.86 highlight your ongoing costs only and do not reflect any Hypothetical 0.70% $1,000.00 $1,021.44 $3.53 transaction costs, such as sales charges (loads), redemption fees, * Expenses are calculated using the Funds’ annualized expense or exchange fees or other costs such as advisory fees related to ratios, which represent ongoing expenses as a percentage of net affiliated money market fund investments, but shareholders of assets for the six months ended March 31, 2021. Expenses are other funds may incur such costs. For example, the information equal to the Funds’ annualized expense ratio for the period does not reflect redemption fees (See page 99), if any, in the Active October 1, 2020 through March 31, 2021, multiplied by the M Emerging Markets Equity, Active M International Equity, average account value over the period, multiplied by 182/365 Multi-Manager Global Listed Infrastructure, Multi-Manager (to reflect the one-half year period). Expense ratios for the most TM Global Real Estate, Northern Engage360 , Multi-Manager recent half year may differ from expense ratios based on Emerging Markets Debt Opportunity and Multi-Manager High one-year data in the Financial Highlights.

MULTI-MANAGER FUNDS 114 NORTHERN FUNDS ANNUAL REPORT MULTI-MANAGER FUNDS

MARCH 31, 2021 (UNAUDITED)

MULTI-MANAGER EMERGING MARKETS DEBT OPPORTUNITY

BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT PAID* EXPENSE VALUE VALUE 10/1/2020- SHARES RATIO 10/1/2020 3/31/2021 3/31/2021 Actual 0.94% $1,000.00 $1,023.50 $4.74 Hypothetical 0.94% $1,000.00 $1,020.24 $4.73

MULTI-MANAGER HIGH YIELD OPPORTUNITY

BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT PAID* EXPENSE VALUE VALUE 10/1/2020- SHARES RATIO 10/1/2020 3/31/2021 3/31/2021 Actual 0.86% $1,000.00 $1,093.00 $4.49 Hypothetical 0.86% $1,000.00 $1,020.64 $4.33

* 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, 2021. Expenses are equal to the Funds’ annualized expense ratio for the period October 1, 2020 through March 31, 2021, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expense ratios for the most recent half year may differ from expense ratios based on one-year data in the Financial Highlights.

NORTHERN FUNDS ANNUAL REPORT 115 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS

TRUSTEES AND OFFICERS

Set forth below is information about the Trustees and Officers of Northern Funds. Each Trustee has served in that capacity since he or she was originally elected or appointed to the Board of Trustees. Each Trustee oversees a total of 47 portfolios in the Northern Funds Complex—Northern Funds offers 42 portfolios and Northern Institutional Funds consists of 5 portfolios. The Northern Funds’ Statement of Additional Information contains additional information about the Trustees and is available upon request and without charge by calling 800-595-9111.

NON-INTERESTED TRUSTEES

NAME, AGE, ADDRESS(1), POSITIONS HELD WITH TRUST AND LENGTH OF OTHER DIRECTORSHIPS SERVICE AS TRUSTEE(2) PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS HELD BY TRUSTEE(3)

Therese M. Bobek • Adjunct Lecturer in the Masters of Accountancy Program, University of Iowa • Methode Electronics, Inc. Age: 60 Tippie College of Business since 2018; Trustee since 2019 • Assurance Partner, PricewaterhouseCoopers LLP from 1997 to 2018.

Ingrid LaMae A. de Jongh • Chief Schooling Officer since May 2020 and Head of School Management and •None Age: 55 Technology from July 2016 to May 2020, Success Academy Charter Trustee since 2019 Schools; • Member of the Board of Directors of Bank Leumi USA since 2016; • Partner in Accenture (global management consulting and professional services firm) from 1987 to 2012; • Member of the Board of Directors, Member of Nominating and Governance and Compensating Committees of Carver Bancorp from 2014 to 2018.

Mark G. Doll • Member of the State of Wisconsin Investment Board since 2015; •None Age: 71 • Executive Vice President and Chief Investment Officer, Northwestern Mutual Trustee since 2013 Life Insurance Company from 2008 to 2012; • Senior Vice President—Public Markets, Northwestern Mutual Life Insurance Company from 2002 to 2008; • President, Northwestern Mutual Series Fund, Mason Street Advisors and Mason Street Funds from 2002 to 2008; • Chairman, Archdiocese of Milwaukee Finance Council from 2005 to 2015; • Member of Investment Committee of Greater Milwaukee Foundation from 2003 to 2015.

Thomas A. Kloet • Chair of Boards of The NASDAQ Stock Market LLC, NASDAQ PHLX LLC • Nasdaq, Inc. Age: 62 and NASDAQ BX, Inc. since 2016; Trustee since 2015 and • Executive Director and Chief Executive Officer, TMX Group, Ltd. (financial Chairperson since services company and operator of stock, derivatives exchanges, their clearing January 1, 2020 operations and securities depository) from 2008 to 2014.

David R. Martin • Chief Financial Officer, Neo Tech (an electronics manufacturer) since June 2019; •None Age: 64 • Adjunct professor, University of Texas, McCombs School of Business since 2017; Trustee since 2017 • Vice President, Chief Financial Officer and Treasurer of Dimensional Fund Advisors LP (an investment manager) from 2007 to 2016; • Executive Vice President, Finance and Chief Financial Officer of Janus Capital Group Inc. (an investment manager) from 2005 to 2007; • Senior Vice President, Finance of Charles Schwab & Co., Inc. (an investment banking and securities brokerage firm) from 1999 to 2005.

Cynthia R. Plouché • Assessor, Moraine Township, Illinois from January 2014 to June 2018; • Barings Funds Trust Age: 64 • Trustee of AXA Premier VIP Trust (registered investment company—34 (registered investment Trustee since 2014 portfolios) from 2001 to May 2017; company—8 portfolios); • Senior Portfolio Manager and member of Investment Policy Committee, Barings Global Short Williams Capital Management, LLC from 2006 to 2012; Duration High Yield Fund • Managing Director and Chief Investment Officer of Blaylock-Abacus Asset (closed-end investment Management, Inc. from June 2003 to 2006; company advised by Barings • Founder, Chief Investment Officer and Managing Director of Abacus LLC) Financial Group from 1991 to 2003, (a manager of fixed income portfolios for institutional clients).

MULTI-MANAGER FUNDS 116 NORTHERN FUNDS ANNUAL REPORT MULTI-MANAGER FUNDS

MARCH 31, 2021 (UNAUDITED)

NON-INTERESTED TRUSTEES

NAME, AGE, ADDRESS(1), POSITIONS HELD WITH TRUST AND LENGTH OF OTHER DIRECTORSHIPS SERVICE AS TRUSTEE(2) PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS HELD BY TRUSTEE(3)

Mary Jacobs Skinner, Esq. • Executive Committee member and Chair, Public Policy Committee, Ann & •None Age: 63 Robert H. Lurie Children’s Hospital since 2016; Trustee since 2000 • Director, Pathways Awareness Foundation since 2000; • Harvard Advanced Leadership Fellow—2016; • Retired in 2015 as partner in the law firm of Sidley Austin LLP; • Director, Chicago Area Foundation for Legal Services from 1995 to 2013. INTERESTED TRUSTEE

NAME, AGE, ADDRESS(1), POSITIONS HELD WITH TRUST AND LENGTH OF OTHER DIRECTORSHIPS SERVICE AS TRUSTEE(2) PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS HELD BY TRUSTEE(3)

Darek Wojnar(4) • Director and Executive Vice President, Head of Funds and Managed • FlexShares Trust (registered Age: 55 Accounts Group at Northern Trust Investments, Inc. since 2018; investment company—27 Trustee since 2019 • Head of Exchange Traded Funds at Hartford Funds from 2014 to 2017 (Including portfolios) Managing Director at Lattice Strategies, LLC (2014 to 2016), which was acquired by Hartford Funds in 2016); • Managing Director, Head of US iShares Product at BlackRock from 2005 to 2013 (Including Barclay Global Investors, acquired by BlackRock in 2009); • Managing Member, Wojnar Group LLC, which offers consulting services within the publishing industry, since 2013.

(1) Each Trustee may be contacted by writing to the Trustee, c/o Diana E. McCarthy, Faegre 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 purpose of considering the election or re-election of such Trustee and until the election and qualification of his or her successor, if any, elected at such meeting; (ii) the date a Trustee resigns or retires, or a Trustee is removed by the Board of Trustees or shareholders, in accordance with the Trust’s Agreement and Declaration of Trust; or (iii) in accordance with the current resolutions of the Board of Trustees (which may be changed without shareholder vote) on the earlier of the completion of 15 years of service on the Board and the last day of the calendar year in which he or she attains the age of seventy-five years. For Trustees who joined the Board prior to July 1, 2016, the 15 year service limit is measured from July 1, 2016.

(3) This column includes only directorships of companies required to report to the SEC under the Securities Exchange Act of 1934, as amended (i.e., public companies) or other investment companies registered under the Investment Company Act of 1940, as amended (the 1940 Act).

(4) An “interested person,” as defined by the 1940 Act. Mr. Wojnar is an “interested” Trustee because he is an officer, director, employee, and a shareholder of Northern Trust Corporation and/or its affiliates. OFFICERS OF THE TRUST

NAME, AGE, ADDRESS, POSITIONS HELD WITH TRUST AND LENGTH OF SERVICE(1) PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS

Peter K. Ewing Director of Product Management, ETFs and Mutual Funds, Northern Trust Investments, Inc. since 2017; Director of Age: 62 Northern Trust Investments, Inc. since 2017; Director of ETF Product Management, Northern Trust Investments, Inc. Northern Trust Investments, from 2010 to 2017; Senior Vice President of The Northern Trust Company and Northern Trust Investments, Inc. since Inc. 2010; President of FlexShares Trust since 2017; Vice President of FlexShares Trust from 2011 to 2017. 50 South LaSalle Street Chicago, Illinois 60603 President since 2017

NORTHERN FUNDS ANNUAL REPORT 117 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS

TRUSTEES AND OFFICERS continued

OFFICERS OF THE TRUST

NAME, AGE, ADDRESS, POSITIONS HELD WITH TRUST AND LENGTH OF SERVICE(1) PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS

Kevin P. O’Rourke Senior Vice President of Northern Trust Investments, Inc. since 2014; Vice President of Northern Trust Investments, Age: 49 Inc. from 2009 to 2014. Northern Trust Investments, Inc. 50 South LaSalle Street Chicago, Illinois 60603 Vice President since 2015

Victor Fernandez Senior Vice President of Northern Trust Investments, Inc. since September 2020; Deputy Chief Compliance Officer of Age: 44 Aegon USA Investment Management, LLC from 2017 to September 2020; Director of Aegon USA Investment Northern Trust Investments, Management, LLC from 2015 to 2017; Director of INTECH Investment Management LLC from 2011 to 2015. Inc. 50 South LaSalle Street Chicago, IL 60603 Chief Compliance Officer since September 2020

Darlene Chappell Anti-Money Laundering Compliance Officer for Northern Trust Investments, Inc., Northern Trust Securities, Inc. and Age: 58 Alpha Core Strategies Fund since 2009; Anti-Money Laundering Compliance Officer for 50 South Capital Advisors, Northern Trust Investments, LLC since 2015, FlexShares Trust since 2011 and Belvedere Advisors LLC since September 2019; Anti-Money Inc. Laundering Compliance Officer for Equity Long/Short Opportunities Fund from 2011 to 2019; Vice President and 50 South LaSalle Street Compliance Consultant for The Northern Trust Company since 2006. Chicago, Illinois 60603 Anti-Money Laundering Compliance Officer since 2009

Randal E. Rein Senior Vice President of Northern Trust Investments, Inc. since 2010; Treasurer and Principal Financial Officer of Age: 50 FlexShares Trust since 2011; Treasurer of Alpha Core Strategies Fund from 2008 to 2018; Treasurer of Equity Northern Trust Investments, Long/Short Opportunities Fund from 2011 to 2018. Inc. 50 South LaSalle Street Chicago, Illinois 60603 Treasurer since 2008

Michael J. Pryszcz Senior Vice President of Fund Accounting of The Northern Trust Company since 2010. Age: 53 The Northern Trust Company 50 South LaSalle Street Chicago, Illinois 60603 Assistant Treasurer since 2008

Richard N. Crabill Senior Vice President of Fund Administration of The Northern Trust Company since 2011. Age: 52 The Northern Trust Company 50 South LaSalle Street Chicago, Illinois 60603 Assistant Treasurer since 2008

MULTI-MANAGER FUNDS 118 NORTHERN FUNDS ANNUAL REPORT MULTI-MANAGER FUNDS

MARCH 31, 2021 (UNAUDITED)

OFFICERS OF THE TRUST

NAME, AGE, ADDRESS, POSITIONS HELD WITH TRUST AND LENGTH OF SERVICE(1) PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS

Michael G. Meehan Senior Vice President of Northern Trust Investments, Inc. since 2016; Vice President of Northern Trust Investments, Age: 50 Inc. from 2011 to 2016; Assistant Treasurer of Alpha Core Strategies Fund and Equity Long/Short Opportunities Fund Northern Trust Investments, from 2011 to 2018. Inc. 50 South LaSalle Street Chicago, Illinois 60603 Assistant Treasurer since 2011

John P. Gennovario Vice President of Northern Trust Investments, Inc. since August 2019; Management Consultant, Principal Funds from Age: 60 September 2018 to April 2019; Financial Reporting Manager Consultant, BNY Mellon from December 2016 to June Northern Trust Investments, 2018; Vice President, Fund Accounting Unit Manager, U.S. Bancorp Fund Services and Accounting Manager, State Inc. Street Global Services from January 2016 to August 2016. 50 South LaSalle Street Chicago, Illinois 60603 Vice President since August 2019

Gregory A. Chidsey Senior Vice President of Financial Reporting of The Northern Trust Company since 2010. Age: 51 The Northern Trust Company 50 South LaSalle Street Chicago, Illinois 60603 Assistant Treasurer since 2013

Craig R. Carberry, Esq. Chief Legal Officer and Secretary of Northern Trust Investments, Inc. since May 2000; Chief Compliance Officer of Age: 60 Northern Trust Investments, Inc. from October 2015 to June 2017; Chief Legal Officer and Secretary of Belvedere The Northern Trust Company Advisers LLC since September 2019; Chief Legal Officer and Secretary of 50 South Capital Advisors, LLC since 2015; 50 South LaSalle Street Deputy General Counsel and Senior Vice President at The Northern Trust Company since June 2020; Secretary of Chicago, Illinois 60603 Alpha Core Strategies Fund (formerly NT Alpha Strategies Fund) since 2004; Secretary of Equity Long/Short Chief Legal Officer since Opportunities Fund (formerly NT Equity Long/Short Strategies Fund) from 2011 to 2019; Secretary of Northern August 2019 Institutional Funds and Northern Funds from 2010-2018; Secretary of FlexShares Trust from 2011-2018; Chief Legal Officer and Secretary of Northern Trust Securities, Inc. since October 2020.

Jose J. Del Real, Esq. Assistant General Counsel and Senior Vice President of Northern Trust Company since August 2020; Senior Legal Age: 43 Counsel and Senior Vice President of The Northern Trust Company from 2017 to July 2020; Senior Legal Counsel and The Northern Trust Company Vice President of The Northern Trust Company from 2015 to 2017; Assistant Secretary of Northern Trust Investments, 50 South LaSalle Street Inc. since 2016; Assistant Secretary of Northern Funds and Northern Institutional Funds from 2011 to 2014 and from Chicago, Illinois 60603 2015 to 2018; Assistant Secretary of FlexShares Trust from 2015 to 2018; Secretary of FlexShares Trust since 2018. Secretary since 2018

Angela R. Burke, Esq. Senior Vice President of The Northern Trust Company since 2021; Vice President of The Northern Trust Company Age: 38 from 2016 to 2021. The Northern Trust Company 50 South LaSalle Street Chicago, Illinois 60603 Assistant Secretary since 2018

(1) Each Officer serves until his or her resignation, removal or retirement, or election of his or her successor. Each Officer also holds the same office with Northern Institutional Funds.

NORTHERN FUNDS ANNUAL REPORT 119 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS

INVESTMENT CONSIDERATIONS

ACTIVE M EMERGING MARKETS EQUITY FUND 1,2,4,5,10,11,12 NORTHERN ENGAGE 360TM FUND1,2,4,5,10,11 ACTIVE M INTERNATIONAL EQUITY FUND1,2,4,10,11 MULTI-MANAGER EMERGING MARKETS DEBT OPPORTUNITY FUND1,3,4,5,6,8,13 MULTI-MANAGER GLOBAL LISTED INFRASTRUCTURE MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND3,4,6,13 FUND1,2,4,5,7,8,10,11 MULTI-MANAGER GLOBAL REAL ESTATE FUND2,4,9,10,11

1 Emerging Markets Risk: Markets of emerging market countries are less developed and less liquid, subject to greater price volatility and generally subject to increased economic, political, regulatory and other uncertainties than more developed markets.

2 Equity Market Risk: The value of equity securities owned by the Fund may decline, at times sharply and unpredictably, because of economic changes or other events, including but not limited to local or regional events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions or other events or adverse investor sentiment, that affect individual issuers or large portions of the market.

3 Fixed Income Market Risk: The market values of fixed-income securities owned by the Fund may decline, at times sharply and unpredictably, including in response to expected, real or perceived economic, political or financial events in the U.S. or global markets. Fixed income securities may experience increased volatility, illiquidity or other potentially adverse effects in response to changing market conditions, inflation, changes in interest rates, or lack of liquidity in markets, which may be caused by numerous factors, including but not limited to local or regional events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions or other events or adverse investor sentiment.

4 Foreign Securities Risk: Investing in foreign (non-U.S.) securities may result in the Fund experiencing more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies, due to less liquid markets and adverse economic, political, diplomatic, financial and regulatory factors. Foreign governments may also impose limits on investment and repatriation and impose taxes. Any of these events could cause the value of the Fund’s investments to decline.

5 Frontier Markets Risk: Frontier countries generally have smaller economies or less developed capital markets than traditional emerging markets and, as a result, the risks of investing in emerging market countries are magnified in frontier countries.

6 High-Yield Risk: The Fund’s non-investment grade fixed-income securities, sometimes known as “junk bonds,” will be subject to greater credit risk, price volatility and risk of loss than investment grade securities, which can adversely impact the Fund’s return and net asset value (“NAV”). High yield securities are considered primarily speculative with respect to the issuer’s continuing ability to make principal and interest payments.

7 Infrastructure Company Risk: Infrastructure companies are subject to the risks that: the potential for realized revenue volumes is significantly lower than projected and/or there will be cost overruns; project sponsors will alter their terms making a project no longer economical; macroeconomic factors such as low gross domestic product (“GDP”) growth or high nominal interest rates will raise the average cost of funding; government regulation may affect rates charged to customers; government budgetary constraints will impact projects; special tariffs will be imposed; and changes in tax laws, regulatory policies or accounting standards could be unfavorable. Other risks include environmental damage due to a company’s operations or an accident, changes in market sentiment towards infrastructure and terrorist acts.

8 Non-Diversification Risk: The Fund invests in fewer securities than diversified funds and may be more susceptible to adverse financial, economic or other developments affecting any single issuer, and more susceptible to greater losses because of these developments, than if it were diversified.

9 Real Estate Securities/REIT Risk: Investments in securities of real estate companies will make the Fund more susceptible to risks associated with the ownership of real estate and with the real estate industry in general. Real estate companies may have lower trading volumes and may be subject to more abrupt or erratic price movements than the overall securities markets. Investing in REITs involves certain unique risks in addition to those risks associated with investing in the real estate industry in general.

10 Mid Cap Stock Risk: Stocks of mid-sized companies may be subject to more abrupt or erratic market movements than stocks of larger, more established companies. Mid-sized companies may have limited product lines or financial resources, and may be dependent on a particular niche of the market.

MULTI-MANAGER FUNDS 120 NORTHERN FUNDS ANNUAL REPORT MULTI-MANAGER FUNDS

11 Small Cap Stock Risk: Stocks of smaller companies may be subject to more abrupt or erratic market movements than stocks of larger, more established companies. Small companies may have limited product lines or financial resources, or may be dependent on a small or inexperienced management group, and their securities may trade less frequently and in lower volume than the securities of larger companies, which could lead to higher transaction costs. Generally, the smaller the company size, the greater the risk.

12Technology Securities Risk: Securities of technology companies may be subject to greater price volatility than securities of companies in other sectors. These securities may fall in and out of favor with investors rapidly, which may cause sudden selling and dramatically lower market prices. Technology securities also may be affected adversely by changes in technology, consumer and business purchasing patterns, government regulation and/or obsolete products or services.

13Credit (or Default) Risk: The inability or unwillingness of an issuer or guarantor of a fixed-income security, or a counterparty to a repurchase or other transaction, to meet its principal or interest payments or other financial obligations will adversely affect the value of the Fund’s investments and its returns. The credit quality of a debt security or of the issuer of a debt security held by the Fund could deteriorate rapidly, which may impair the Fund’s liquidity or cause a deterioration in the Fund’s NAV. The Fund could also be delayed or hindered in its enforcement of rights against an issuer, guarantor or counterparty.

NORTHERN FUNDS ANNUAL REPORT 121 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS

THIS PAGE INTENTIONALLY LEFT BLANK

MULTI-MANAGER FUNDS 122 NORTHERN FUNDS ANNUAL REPORT MULTI-MANAGER FUNDS

THIS PAGE INTENTIONALLY LEFT BLANK

NORTHERN FUNDS ANNUAL REPORT 123 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS

FOR MORE INFORMATION

PORTFOLIO HOLDINGS Northern Funds files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s web site at sec.gov.

PROXY VOTING

Northern Funds’ Proxy Voting Policies and Procedures and each Fund’s portfolio securities voting record for the 12-month period ended June 30 are available upon request and without charge by visiting Northern Funds’ web site at northerntrust.com/funds or the SEC’s web site at sec.gov or by calling the Northern Funds Center at 800-595-9111.

MULTI-MANAGER FUNDS 124 NORTHERN FUNDS ANNUAL REPORT PROTECTING YOUR PRIVACY

Protecting your privacy is important at Northern Funds, which is why we wanted you to know: ▪ We do not sell non-public personal information about our investors or former investors to any outside company. ▪ We have policies that limit access to your information to only those people who need it to perform their jobs and provide services to you, and we have physical, electronic and procedural safeguards that comply with federal standards to guard your personal information. ▪ We collect information about you from applications, forms, conversations and your use of our Web site; third parties with your permission; and your transactions with us, our affiliates and our joint marketing partners. ▪ We do not disclose the information we collect about our investors or former investors to anyone, except to companies that perform services for us, affiliates with whom we have joint marketing agreements such as Northern Trust, (1) for our everyday purposes, such as to process transactions, maintain accounts, respond to court orders and legal investigations or report to credit bureaus or (2) as permitted by law. ▪ The information includes account balances and account history. You may limit our use or sharing of information about you with our affiliates and joint marketing partners for marketing purposes by calling 800-595-9111 weekdays from 7:00 a.m. to 5:00 p.m. Central time or by writing to us at Northern Funds, P.O. Box 75986, Chicago, IL 60675-5986. If our information sharing practices change, we will send you a revised notice. You can also visit our Web site, northerntrust.com/funds,for an online version of our current privacy notice.

SHAREHOLDER COMMUNICATIONS In order to help reduce expenses and reduce the amount of mail that you receive, we generally send a single copy of all materials, including prospectuses, financial reports, proxy statements and information statements to all investors who share the same mailing address, even if more than one person in a household holds shares of a fund. If you do not want your mailings combined with those of other members of your household, you may opt-out at any time by contacting the Northern Funds Center either by telephone at 800-595-9111; by mail at Northern Funds, P.O. Box 75986, Chicago, Illinois 60675-5986; or by sending an e-mail to [email protected]. Not part of the Annual Report e

SIGN UP FOR E-DELIVERY To get future shareholder reports online and to eliminate mailings, go to: northerntrust.com/e-delivery

©2021 Northern Funds MMF ANR (5/21)