Small Cap Index Fund

Small Cap Index

Northern Funds Center by E-mail

Chad M. Rakvin

With Northern Trust since 2004
Began Career in 1996

Brent Reeder

With Northern Trust since 1993
Began Career in 1993

View all holdings as of
July 31, 2010

View all holdings as of
June 30, 2010

View all holdings as of
May 31, 2010

View all holdings as of
April 30, 2010

View all holdings as of
March 31, 2010

View all holdings as of
February 28, 2010

Fact Sheet

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For those aggressive investors seeking competitive long-term investment returns through a broadly diversified portfolio, this Fund may be a good choice for you. The Small Cap Index Fund seeks to offer investment results, before expenses, approximating the aggregate price and dividend performance of the securities included in the Russell 2000 Index. Our experienced investment team does not use traditional methods of investment management of the Fund, rather the team will buy and sell securities in response to changes in the Russell 2000 Index.

Fund Objective: Seeks to Replicate Index

Ticker Symbol	Share Price Change Daily as of 09/03/10	YTD Total Return Daily as of 09/03/10
NSIDX	$ 0.12	3.35%

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Updated Daily as of September 3, 2010
Symbol	NSIDX	YTD Total Return	3.35%
CUSIP	665162723	Inception Date	9/3/1999
Share Price	$ 7.09	Updated Monthly as of July 31, 2010
Share Price Change	$ 0.12	Total Net Assets	$286,397,270

Total Returns for Month Ended July 31, 2010
	Small Cap Index Fund	Russell 2000 Index	Morningstar Small Blend Category Average
Month	6.86%	6.87%	6.59%
3-Month	–9.01%	–8.89%	-8.55%
Year to Date	4.52%	4.79%	4.16%
1 Year	18.20%	18.43%	18.90%
3-Year Avg. Annual	–4.60%	–4.32%	-5.13%
5-Year Avg. Annual	0.15%	0.47%	0.28%
10-Year Avg. Annual	3.59%	4.03%	5.83%
Avg. Annual Since Inception	4.58%	Pending%	N/A

Total Returns for Quarter Ended June 30, 2010
	Small Cap Index Fund	Russell 2000 Index	Morningstar Small Blend Category Average
Month	–7.83%	–7.75%	-7.25%
3-Month	–10.05%	–9.92%	-9.62%
Year to Date	–2.19%	–1.95%	-2.24%
1 Year	21.10%	21.48%	21.97%
3-Year Avg. Annual	–8.86%	–8.60%	-9.04%
5-Year Avg. Annual	0.05%	0.37%	0.16%
10-Year Avg. Annual	2.59%	3.00%	5.08%
Avg. Annual Since Inception	3.98%	4.68%	N/A

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 Advisor has agreed to reimburse certain expenses of the Fund. The contractual reimbursement arrangement is expected to continue until at least July 31, 2011. After this date, the contractual arrangements may be terminated if it is determined to be in the best interest of the Fund and its shareholders. In the absence of fee waivers, yield, total return, growth since inception and dividends would have been reduced. Total return is based on net change in NAV assuming reinvestment of distributions.

Disclosure

	Gross Expense Ratio	Net Expense Ratio*
Small Cap Index (NSIDX)	0.54%	0.35%
*Includes contractual expense reimbursements that, if not extended, will end on July 31, 2011.

	2009	2008	2007	2006	2005
Small Cap Index	27.22%	-34.05%	-1.91%	17.84%	4.21%
Russell 2000 Index	27.16%	-33.79%	-1.56%	18.37%	4.55%
Morningstar Category Avg. Small Blend	31.80%	-36.56%	-1.10%	15.03%	6.75%
Performance quoted represents past performance and does not guarantee future results.

as of July 31, 2010

Read the most recent Fund Commentary (as of June 30, 2010)

Number of Holdings	1990
Portfolio Turnover	21.34% (as of 3/31/10)
Dividend Schedule	Annually
Dividend Income Last Quarter	N/A
Capital Gain Income Last Quarter	N/A
Weighted Average Market Cap ($Mil)	$1,003
Benchmark	Russell 2000 Index
Morningstar Category	Small Blend

Trailing 12-Month Price to Earnings Ratio
Fund	14.11
Benchmark	14.07

Price to Book Ratio
Fund	1.51
Benchmark	1.51

Historical 5-Year Earnings Growth
Fund	7.40
Benchmark	7.10

Asset Allocation
Stocks	97.7%
Cash	2.3%
TOTAL	100%

Top 10 Holdings		Fund
Salix Pharmaceuticals Ltd		0.2%
Riverbed Technology Inc		0.2%
Tibco Software Inc		0.2%
Highwoods Properties Inc		0.2%
Jack Henry & Associates Inc		0.2%
Nordson Corp		0.2%
FirstMerit Corp		0.2%
Parametric Technology Corp		0.2%
Rock-Tenn Co		0.2%
BioMed Realty Trust Inc		0.2%
% of Portfolio		2.0%

Sector Weightings	Fund	Benchmark
Financials	21.6%	21.5%
Information Technology	17.8%	17.9%
Industrials	15.7%	15.7%
Consumer Discretionary	14.0%	14.0%
Health Care	13.1%	13.1%
Energy	5.4%	5.4%
Materials	5.0%	5.0%
Consumer Staples	3.2%	3.2%
Utilities	3.2%	3.2%
Telecommunication Services	1.0%	1.0%
% of Portfolio	100.0%	100.0%

All data is as of date indicated and subject to change.

as of June 30, 2010

	Small Cap Index Fund	Russell 2000 Index
Beta	1.00	1.00
Up Market Capture	99.41	100.00
Down Market Capture	100.17	100.00
Information Ratio	–0.96	0.00
*Above risk characteristics are based on a 3-year time period

Equity Risk: Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.

Small Cap Risk: Small capitalization funds typically carry additional risks since smaller companies generally have a higher risk of failure. Their stocks are subject to a greater degree of volatility, trade in lower volume and may be less liquid.

Index Fund Risk: The performance of the Fund is expected to be lower than that of the Index because of Fund fees and expenses. It is important to remember that there are risks associated with index investing, including the potential risk of market decline, as well as the risks associated with investing in specific companies.

Russell 2000® Index is an unmanaged index which measures the performance of the 2,000 smallest companies in the Russell 3000 Index. It is not possible to invest directly in an index.