FIRST AMERICAN FUNDS, INC.
FIRST AMERICAN INVESTMENT FUNDS, INC.
ANNUAL REPORT
September 30, 1996
[LOGO] FIRST AMERICAN FUNDS
The power of disciplined investing
TABLE OF CONTENTS
MESSAGE FROM YOUR CHAIRMAN 1
ECONOMIC AND INVESTMENT REVIEW 2
PORTFOLIO PERFORMANCE DISCUSSION 4
INDEPENDENT AUDITORS' REPORT 18
STATEMENTS OF NET ASSETS 19
STATEMENT OF ASSETS AND LIABILITIES 74
STATEMENTS OF OPERATIONS 75
STATEMENTS OF CHANGES IN NET ASSETS 81
FINANCIAL HIGHLIGHTS 86
NOTES TO FINANCIAL STATEMENTS 92
NOTICE TO SHAREHOLDERS 99
MESSAGE FROM YOUR CHAIRMAN September 30, 1996
Dear Shareholder:
On behalf of the Board of Directors of the First American Funds, I am again
pleased to report another year of solid growth for the First American Fund
family, which by the end of the current fiscal year had surpassed $9.8 billion
in assets under management. This growth was spread across the complex; in
particular, the growth in our money market funds was impressive as assets under
management in these funds increased by nearly $1.5 billion.
I am also pleased to report that the performance of the First American Funds has
been as impressive as the growth of the Funds. The disciplined investment
approach of First Asset Management, a division of First Bank National
Association, advisor to the Funds, has resulted in outstanding returns for our
shareholders. For the fiscal year ended September 30, 1996, 14 of our 19 stock
and bond funds which have been in operation for at least one year posted returns
in excess of the appropriate Lipper average (as measured by Class A returns at
net asset value).
At the end of the calendar year, long-time directors Irving Fish and Wells
Eastman will be leaving the Board of Directors. Irving has been a director since
1984 and Wells since 1990. I would like to acknowledge their contribution to the
Funds and their shareholders.
We urge you to read the following report closely. In it you will find an
Economic and Investment Review from First Asset Management, which recaps events
in the market for the past 12 months and provides an outlook for the year ahead.
In addition, you will find a detailed discussion of the performance of the First
American Funds during the 12 months ended September 30, 1996.
Finally, the Board of Directors thanks you for your continued confidence in the
First American Funds. We look forward to providing you with investment
management to meet your needs now and in the years ahead. As always, if you have
any questions or require any assistance, please don't hesitate to call us at
1-800-637-2548.
Sincerely,
/s/ Joseph D. Strauss
JOSEPH D. STRAUSS
Chairman
First American Funds
First American Investment Funds
ECONOMIC AND INVESTMENT REVIEW September 30, 1996
Dear Fellow Shareholders:
Sometimes wishes come true, but often not in the manner that we might expect.
Last October, at the beginning of the First American Funds' fiscal year, First
Asset Management projected sustained economic growth at a moderate pace. We
foresaw emerging inflation pressure and disagreed with the consensus that called
for even lower interest rates, reflecting an economy that was falling into a
sustained period of very slow growth in reaction to the prior year's tightening
of monetary policy.
Frustrating general expectations, interest rates rose and the economy did not
collapse. In fact, it has, on average, displayed the moderate pace we had
expected, but the quarter to quarter progression of growth has been far more
divergent than we had thought possible, prompting a year long debate regarding
appropriate monetary policy.
A tough winter, weak Christmas sales, work stoppages, and aggressive inventory
reductions throttled economic growth during the first half of the Funds' fiscal
year. As the snow melted, so did consumers' restraint. They directed stronger
income, early tax refunds, and ample credit to a surge of spending in the spring
and early months of the summer. Strong capital spending and a sharp acceleration
in housing-related outlays added to vigorous economic growth in the June
quarter.
We descended the other side of this economic roller coaster in the last
months of the Funds' fiscal year with consumer spending slowing markedly as
consumers' credit lines became fully extended. Housing activity has begun to
slow with the burden of higher mortgage rates. Consumers are not the only
ones contributing to this economic deceleration, however. Capital spending
has slowed from a double-digit pace and the widely expected improvement in our
trade balance has succumbed to slow economic recoveries in the established
industrial powers and slower growth in the booming emerging industrial
economies.
Inflation has been well contained, in large measure due to an extremely
competitive product-pricing environment and an anxious workforce more concerned
with job security than with higher wages. Thus, we have been pleasantly
surprised by inflation and believe that the rapid expansion in global capacity
for virtually all goods and services has led to domestic inflation that will
average less that 3.0% in 1996. Unfortunately for those that expected
significantly lower interest rates, the news is not all good. Inflation has not
faded away altogether. A rather tight supply of skilled labor and higher energy
prices suggest that inflation's cloud has not totally dissipated.
Anticipating higher interest rates, First Asset Management adjusted its bond
portfolios to a moderately defensive position in late 1995. This proved
fortunate as the combination of sustained economic growth and a more candid
appraisal of the difficulty lawmakers face in balancing the Federal budget
deflated the bond market's optimism, evidenced by the excellent returns of 1995.
By May, rates had risen to nearly 7.0%, a more sober reflection of the policy
and inflation outlook. At that time First Asset Management adjusted its bond
portfolios to a neutral stance where they remain today.
TREASURY YIELDS
Line graph depicting the yields of 30 year Treasury Bond and three months
Treasury Bills.
30 year 3mo bill
Dec-84 11.52 8.06
Jan-85 11.45 7.76
Feb-85 11.47 8.26
Mar-85 11.81 8.52
Apr-85 11.47 7.95
May-85 11.05 7.48
Jun-85 10.45 6.95
Jul-85 10.5 7.08
Aug-85 10.56 7.13
Sep-85 10.61 7.1
Oct-85 10.5 7.16
Nov-85 10.06 7.24
Dec-85 9.54 7.1
Jan-86 9.4 7.07
Feb-86 8.93 7.06
Mar-86 7.96 6.56
Apr-86 7.39 6.06
May-86 7.52 6.15
Jun-86 7.57 6.21
Jul-86 7.27 5.83
Aug-86 7.33 5.53
Sep-86 7.62 5.21
Oct-86 7.7 5.18
Nov-86 7.52 5.35
Dec-86 7.37 5.53
Jan-87 7.39 5.43
Feb-87 7.54 5.59
Mar-87 7.55 5.59
Apr-87 8.25 5.64
May-87 8.78 5.66
Jun-87 8.57 5.67
Jul-87 8.64 5.69
Aug-87 8.97 6.04
Sep-87 9.59 6.4
Oct-87 9.61 6.13
Nov-87 8.95 5.69
Dec-87 9.12 5.77
Jan-88 8.83 5.81
Feb-88 8.43 5.66
Mar-88 8.63 5.7
Apr-88 8.95 5.91
May-88 9.23 6.26
Jun-88 9 6.46
Jul-88 9.14 6.73
Aug-88 9.32 7.06
Sep-88 9.06 7.24
Oct-88 8.89 7.35
Nov-88 9.02 7.76
Dec-88 9.01 8.07
Jan-89 8.93 8.26
Feb-89 9.01 8.53
Mar-89 9.17 8.82
Apr-89 9.03 8.65
May-89 8.83 8.43
Jun-89 8.27 8.15
Jul-89 8.08 7.88
Aug-89 8.12 7.9
Sep-89 8.15 7.75
Oct-89 8 7.64
Nov-89 7.9 7.69
Dec-89 7.9 7.63
Jan-90 8.26 7.64
Feb-90 8.5 7.74
Mar-90 8.56 7.9
Apr-90 8.76 7.77
May-90 8.73 7.74
Jun-90 8.46 7.73
Jul-90 8.5 7.62
Aug-90 8.86 7.45
Sep-90 9.03 7.36
Oct-90 8.86 7.17
Nov-90 8.54 7.06
Dec-90 8.24 6.74
Jan-91 8.27 6.22
Feb-91 8.03 5.94
Mar-91 8.29 5.91
Apr-91 8.21 5.65
May-91 8.27 5.46
Jun-91 8.47 5.57
Jul-91 8.45 5.58
Aug-91 8.14 5.33
Sep-91 7.95 5.22
Oct-91 7.93 4.99
Nov-91 7.92 4.56
Dec-91 7.7 4.07
Jan-92 7.58 3.8
Feb-92 7.85 3.84
Mar-92 7.97 4.04
Apr-92 7.96 3.75
May-92 7.89 3.63
Jun-92 7.84 3.66
Jul-92 7.6 3.21
Aug-92 7.39 3.13
Sep-92 7.34 2.91
Oct-92 7.53 2.86
Nov-92 7.61 3.13
Dec-92 7.44 3.22
Jan-93 7.34 3
Feb-93 7.09 2.93
Mar-93 6.82 2.95
Apr-93 6.85 2.87
May-93 6.92 2.96
Jun-93 6.81 3.07
Jul-93 6.63 3.04
Aug-93 6.32 3.02
Sep-93 6 2.95
Oct-93 5.94 3.02
Nov-93 6.21 3.1
Dec-93 6.25 3.06
Jan-94 6.29 2.98
Feb-94 6.49 3.25
Mar-94 6.91 3.5
Apr-94 7.27 3.68
May-94 7.41 4.14
Jun-94 7.4 4.14
Jul-94 7.58 4.33
Aug-94 7.49 4.48
Sep-94 7.71 4.62
Oct-94 7.94 4.95
Nov-94 8.08 5.29
Dec-94 7.87 5.6
Jan-95 7.85 5.71
Feb-95 7.61 5.77
Mar-95 7.45 5.73
Apr-95 7.36 5.65
May-95 6.95 5.67
Jun-95 6.57 5.47
Jul-95 6.72 5.42
Aug-95 6.86 5.4
Sep-95 6.55 5.28
Oct-95 6.37 5.28
Nov-95 6.26 5.36
Dec-95 6.06 5.14
Jan-96 6.05 5
Feb-96 6.24 4.83
Mar-96 6.6 4.96
Apr-96 6.79 4.95
May-96 6.93 5.02
Jun-96 7.06 5.09
Jul-96 7.03 5.15
Aug-96 6.84 5.05
Sep-96 7.03 5.09
Source: Federal Reserve Board/Haver Analytics
Few unique superlatives can be found to describe the performance of the stock
market during the Funds' fiscal year. Driven by successive quarters of
surprisingly favorable earnings comparisons, an accommodative monetary policy,
and sustained enthusiasm of individual investors for equities, the S&P 500 has
produced a 20.3% total return over the past 12 months. We will be the first to
admit that we underestimated the power of the forces fueling the stock market,
but we would also point out that our equity selection disciplines enabled our
growth group and our value group to build portfolios that have generally
exceeded their related benchmarks.
ECONOMIC AND INVESTMENT REVIEW September 30, 1996
THE STOCK MARKET
Line graph depicting the Stock Market value of the S&P 500 and NASDAQ Composite
index index
Dec-84 164.48 241.91
Jan-85 171.61 260.8
Feb-85 180.88 285.52
Mar-85 179.42 280.8
Apr-85 180.62 280.89
May-85 184.9 287.46
Jun-85 188.89 290.44
Jul-85 192.54 302.04
Aug-85 188.31 298.25
Sep-85 184.06 287.93
Oct-85 186.18 285.36
Nov-85 197.45 304.35
Dec-85 207.26 320.23
Jan-86 208.08 328.52
Feb-86 219.37 348.79
Mar-86 232.33 368.23
Apr-86 237.97 382.54
May-86 238.46 388.49
Jun-86 245.3 398.6
Jul-86 240.18 385.89
Aug-86 245 375.62
Sep-86 238.27 358.29
Oct-86 237.49 355.03
Nov-86 245.09 358.08
Dec-86 248.61 354.92
Jan-87 264.51 384.23
Feb-87 280.93 411.71
Mar-87 292.47 432.2
Apr-87 289.32 422.77
May-87 289.12 416.63
Jun-87 301.38 423.7
Jul-87 310.09 429.01
Aug-87 329.36 448.38
Sep-87 318.66 442.8
Oct-87 280.16 385.05
Nov-87 245.01 318.75
Dec-87 240.96 314.54
Jan-88 250.48 339.28
Feb-88 258.13 353.58
Mar-88 265.74 375.54
Apr-88 262.61 377.24
May-88 256.12 371.88
Jun-88 270.68 385.98
Jul-88 269.05 391.4
Aug-88 263.73 379.61
Sep-88 267.97 382.16
Oct-88 277.4 385.01
Nov-88 271.02 372.89
Dec-88 276.51 375.78
Jan-89 285.41 389.32
Feb-89 294.01 404.08
Mar-89 292.71 404
Apr-89 302.25 417.13
May-89 313.93 435.99
Jun-89 323.73 447.58
Jul-89 331.92 446.7
Aug-89 346.61 461.83
Sep-89 347.33 469.28
Oct-89 347.4 469.68
Nov-89 340.22 454.7
Dec-89 348.57 449.01
Jan-90 339.97 439.35
Feb-90 330.45 424.52
Mar-90 338.47 436.09
Apr-90 338.18 428.99
May-90 350.25 442.6
Jun-90 360.39 462.31
Jul-90 360.03 455.82
Aug-90 330.61 396.32
Sep-90 315.41 368.57
Oct-90 307.12 338.01
Nov-90 315.29 347.69
Dec-90 328.75 370.21
Jan-91 325.49 376.67
Feb-91 362.26 442.59
Mar-91 372.28 469.1
Apr-91 379.68 496.32
May-91 377.99 490.93
Jun-91 378.29 490.37
Jul-91 380.23 489.37
Aug-91 389.4 513.25
Sep-91 387.2 520.56
Oct-91 386.88 528.92
Nov-91 385.92 536.58
Dec-91 388.51 544.1
Jan-92 416.08 615.73
Feb-92 412.56 632.05
Mar-92 407.36 619.6
Apr-92 407.41 582.79
May-92 414.81 581.47
Jun-92 408.27 566.66
Jul-92 415.05 568.72
Aug-92 417.93 569
Sep-92 418.48 580.68
Oct-92 412.5 585.01
Nov-92 422.84 630.86
Dec-92 435.64 661.28
Jan-93 435.23 691.13
Feb-93 441.7 681.72
Mar-93 450.16 684.49
Apr-93 443.08 665.33
May-93 445.25 686.45
Jun-93 448.06 695.38
Jul-93 447.29 703.4
Aug-93 454.13 725.15
Sep-93 459.24 745.94
Oct-93 463.9 771.31
Nov-93 462.89 764.04
Dec-93 465.95 762.94
Jan-94 472.99 787.77
Feb-94 471.58 787.81
Mar-94 463.81 785.93
Apr-94 447.23 732.3
May-94 450.9 727.76
Jun-94 454.83 723.21
Jul-94 451.4 713.49
Aug-94 464.24 738.87
Sep-94 466.96 763.94
Oct-94 463.81 762.46
Nov-94 461.01 760.42
Dec-94 455.19 734.99
Jan-95 465.25 758.01
Feb-95 481.92 784.24
Mar-95 493.15 807.16
Apr-95 507.91 825.34
May-95 523.81 859.76
Jun-95 539.35 906.04
Jul-95 557.37 979.36
Aug-95 559.11 1009.59
Sep-95 578.77 1051
Oct-95 582.92 1022.14
Nov-95 595.53 1046.64
Dec-95 614.57 1047.04
Jan-96 614.42 1024.95
Feb-96 649.54 1094.02
Mar-96 647.07 1092.65
Apr-96 646.09 1135.63
May-96 661.23 1220.54
Jun-96 668.5 1205.08
Jul-96 644.07 1105.61
Aug-96 662.68 1134.25
Sep-96 674.88 1186.44
Source: Haver Analytics
Although each of the First American Funds embodies a unique investment style,
all are guided by our current economic forecast of sustained economic expansion
at a moderate pace. In this environment, inflation should be contained at less
than 3.5%. The recent decision of the Federal Reserve to hold the Federal funds
rate at 5.25% suggests that policy makers share a similar outlook. Specifically,
we have projected economic growth averaging about 2.0% in coming quarters.
Consumers need to reduce their aggregate debt burden and we believe that little
pent-up demand remains. This is not to say that the Christmas selling season
will be as soft as it was last year, but it may be "just O.K." With the possible
exception of outlays for high technology that seem to have a life of their own,
capital spending should slow. The United States has made great strides as a
global competitor but, for now, only modest improvement can be anticipated in
our trade position.
REAL GROSS DOMESTIC PRODUCT
Seasonally Adjusted Annual Rate
Bar chart depicting the Real Gross Domestic Product on a seasonally adjusted
annual rate
q/q y/y
Dec-86 2.156336 2.372706
Mar-87 2.512936 1.756505
Jun-87 4.044544 2.691239
Sep-87 3.55008 3.063155
Dec-87 6.019028 4.023883
Mar-88 2.351127 3.98281
Jun-88 4.129617 4.004059
Sep-88 2.404245 3.715143
Dec-88 5.147091 3.501235
Mar-89 3.956072 3.904615
Jun-89 3.009055 3.623945
Sep-89 2.185056 3.568451
Dec-89 0.447662 2.391315
Mar-90 4.0719 2.419825
Jun-90 1.325988 1.998877
Sep-90 -1.8783 0.969406
Dec-90 -4.11384 -0.19695
Mar-91 -2.15956 -1.72568
Jun-91 1.744126 -1.62445
Sep-91 1.004735 -0.90965
Dec-91 0.995599 0.384805
Mar-92 4.727397 2.106516
Jun-92 2.543624 2.306515
Sep-92 3.040074 2.818058
Dec-92 4.310166 3.651465
Mar-93 -0.01896 2.456561
Jun-93 1.698719 2.244859
Sep-93 2.33056 2.068393
Dec-93 4.680634 2.158899
Mar-94 2.542491 2.807018
Jun-94 4.813485 3.585312
Sep-94 3.571904 3.898035
Dec-94 3.157428 3.518
Mar-95 0.617148 3.028626
Jun-95 0.466374 1.943326
Sep-95 3.558002 1.939905
Dec-95 0.485493 1.273295
Mar-96 1.996878 1.690792
Jun-96 4.676045 2.667759
Sep-96 2.30619 2.296204
Dec-96 1.917853 2.718008
Mar-97 2.083565 2.739827
Jun-97 2.246942 2.138525
Sep-97 2.234391 2.1206
Dec-97 1.7632 2.081838
Source: Dept. of Commerce/Haver Analytics
As in past reports, our outlook for the bond market reflects a weighing of
various factors that we believe are important in forecasting the behavior of
interest rates. We continue to find an offsetting balance of forces driving
interest rates and thus have maintained a neutral position in our Funds' bond
portfolios.
THE BOND MARKET BALANCE
[GRAPHIC: Scale evenly weighted}
NEGATIVES POSITIVES
Resilience of economy Moderate economic growth
Inflation concerns Low reported inflation
Budget impasse Stable to rising dollar
Japenese banks Bearish sentiment
There are a number of factors that could trigger a stock market correction, but
the central issue affecting equity values may well be the durability of
corporate profit growth in a slowly expanding economy. That risk, combined with
other factors, leads us to moderate caution with regard to the near-term outlook
for stocks. Although the longer-term prospects for the domestic economy and the
stock market are quite favorable, our equity Funds have employed various
defensive measures ranging from moderate cash reserves to even greater emphasis
on the selection disciplines that guide the Funds' management.
THE STOCK MARKET BALANCE
[GRAPHIC: Scale weighted towards the negatives]
NEGATIVES POSITIVES
Difficult profit comparisons Substained economic expansion
Risk of higher interest rates Low inflation
Full valuation Liquidity
Complacency Investor enthusiasm
By offering a wide choice of investment alternatives, the First American Funds
family has served the unique investment needs of our clients. The Funds have
grown rapidly thanks to your confidence in the successful implementation of
their investment disciplines. We greatly appreciate the opportunity to serve
you, our shareholders.
Sincerely,
/s/ John M. Murphy, Jr.
John M. Murphy, Jr.
Chief Investment Officer
First Asset Management
PORTFOLIO PERFORMANCE DISCUSSION September 30, 1996
FIRST AMERICAN FUNDS
The following review of each fund is intended to help you understand the
performance of your investment in the First American Funds.
The charts represent the growth of a $10,000 investment in each fund since its
inception. The ending balance on September 30, 1996, shows how your account
would have grown had you invested $10,000 when the fund was introduced including
reinvestment of all distributions.
All performance data quoted in the discussions that follow (with the exception
of the money market funds) represent total returns for Class A shares at net
asset value.
Terms and Definitions:
Class A shares -- are generally subject to an initial sales charge.
Class B shares -- may be subject to a sales charge upon redemption.
Class C shares -- are not subject to an initial sales or redemption charge and
are reserved for large institutional investors.
NET ASSET VALUE (NAV) is the value of all your fund's assets, minus any
liabilities, divided by the number of shares outstanding, not including any
initial or contingent deferred sales charge.
PUBLIC OFFERING PRICE (POP) is the price of a mutual fund share plus the maximum
sales charge levied at the time of purchase. POP performance figures shown
assume the maximum sales charge for Class A shares.
CONTINGENT DEFERRED SALES CHARGE (CDSC) is a charge applied at the time of the
redemption of Class B shares and assumes redemption at the end of the period.
Your fund's CDSC declines from a 5% maximum during the first year to 1% during
the sixth year. After the eighth year, the Class B shares convert to Class A
shares.
MONEY MARKET FUNDS
The previous 12 months represented a period of modestly accommodative monetary
policy. The Federal Reserve lowered short-term interest rates twice during the
year, each time by 25 basis points, building on its first move back in July,
1995. The Fed has been in a balancing act between its anti-inflation commitment
and its concern about the prospects for economic growth.
More recently, the Fed has implicitly reiterated its forecast of slower grow and
low inflation by holding short-term interest rates constant in the face of
significant pressure to increase them. The Fed's anti-inflation commitment has
not relaxed; accelerating economic activity, rising inflation, or weakness in
the dollar could prompt higher short interest rates.
Given the uncertainty surrounding the economic environment and the potential for
the Fed to raise short- term interest rates, the First American Money Market
Funds have maintained average maturities slightly shorter than the industry
average. The primary focus continues to be the maintenance of high-quality
assets and excellent liquidity in each portfolio. As noted in the past, the
Funds have never invested in any of the derivative securities that created
problems for other money funds.
PRIME OBLIGATIONS FUND
At fiscal-year end, the institutional class had a seven-day yield of 5.15% and
an average portfolio maturity of 39 days. During the previous twelve months, the
average maturity ranged from a low of 27 days to a high of 54 days.
GOVERNMENT OBLIGATIONS FUND
At fiscal-year end, the institutional class had a seven-day yield of 5.04% and
an average portfolio maturity of 38 days. During the previous twelve months, the
average maturity ranged from a low of 18 days to a high of 51 days.
TREASURY OBLIGATIONS FUND
At fiscal-year end, the institutional class had a seven-day yield of 4.95% and
an average portfolio maturity of 35 days. During the previous twelve months, the
average maturity ranged from a low of 15 days to a high of 46 days.
LIMITED TERM INCOME FUND
The duration on the Limited Term Fund has been fairly constrained in 1996
because of our view that interest rates would rise this year rather than fall as
was widely expected. The consequence of this strategy is that the Fund's return
has remained competitive with those of money funds and well above those of
longer-term portfolios. For the fiscal year, the Fund generated a total return
of 5.93% as compared to the return of 5.69% for the Merrill Lynch 1-3 year
Treasury Index.
The duration on the Fund is managed primarily through the re-investment process,
rather than through aggressive purchases and sales of the Fund's securities.
This is because it is not part of the Fund's philosophy and strategy to attempt
to achieve significant gains through interest-rate forecasting or aggressive
duration management.
Yield spreads on nongovernment securities are narrower than they have been for a
number of years. Nonetheless, the Fund continues to hold a mix of asset-backed,
mortgage securities and corporate notes with short average lives for their
moderate yield advantage to Treasuries or money market instruments.
As is customary, the credit quality of the Fund remains quite high and, in
keeping with the low risk philosophy of the Fund there are no holdings of
leveraged derivatives or other unusually volatile securities.
VALUE OF A $10,000 INVESTMENT
* First American Limited-Term Income Fund(Class A NAV)
* Merrill Lynch 1-Year Treasury Index
* First American Limited-Term Income Fund(Class A POP)
[PLOT POINTS GRAPH]
12/31/92 10000 10000 9800
09/30/93 10344 10293 10137
09/30/94 10573 10552 10361
09/30/95 11267 11265 11042
09/30/96 11935 11906 11697
Past performance of the Fund is not indicative of future performance. A $10,000
investment in the Fund's Class C shares on 12/31/92 would have been valued at
$11,935 on 9/30/96.
One Three Annualized
Year Year Inception
Return Return To Date
------ ------ ----------
CLASS A NAV 5.93% 4.89% 4.82%
CLASS A POP 3.83% 4.17% 4.27%
CLASS C 5.93% 4.89% 4.82%*
- --------------------------
The inception date of the Class A shares is 12/14/92 and the inception date of
the Class C shares is 2/4/94.
*The performance presented links the performance of Class C shares which were
created on Feb. 4, 1994 with the performance of Class A shares which were the
only class of shares issued by the Fund from inception on Dec. 14, 1992. The
annualized since inception return of Class C shares from the date they were
created is 5.16%.
INTERMEDIATE TERM INCOME FUND
Intermediate term portfolios have generally outperformed longer-term bond funds
this year because of the sharp rise in interest rates from January through early
May. The durations on all of our bond portfolios were shortened in late December
of last year in anticipation of a rise in rates this year, even though at the
time the widely held view was that the economy would slow sharply and that
interest rates would drop. The shortened duration through early May and a
neutral position since has resulted in a return for the Fund which is
discernibly above the intermediate index benchmark. For the fiscal year, the
Fund produced a total return of 5.63% as compared to the return of 5.13% for the
Lehman Intermediate Government/Corporate Index.
The Fund continues to hold a mix of corporate, mortgage and asset-backed
securities, but is somewhat overweighted in Treasuries because of the unusually
narrow yield spreads on nongovernment issues. A slight widening of yield spreads
would offset all of the initial yield advantage that such issues currently have,
and any further widening would cause them to underperform governments.
The average credit quality of the Fund remains very high, and we continue to
avoid leveraged derivatives or other unusually volatile securities that might
put the Fund's return at risk in an adverse market environment.
VALUE OF A $10,000 INVESTMENT
* Lehman Intermediate-Term Government/Corporate Bond Index
* First American Intermediate-Term Income Fund(Class A NAV)
* First American Intermediate-Term Income Fund(Class A POP)
[PLOT POINTS GRAPH]
12/31/92 10000 10000 9625
09/30/93 10860 10673 10273
09/30/94 10680 10562 10165
09/30/95 11883 11672 11234
09/30/96 12493 12329 11867
Past performance of the Fund is not indicative of future performance. A $10,000
investment in the Fund's Class C shares on 12/31/92 would have been valued at
$12,364 on 9/30/96.
One Three Annualized
Year Year Inception
Return Return To Date
------ ------ ----------
CLASS A NAV 5.63% 4.93% 5.80%
CLASS A POP 1.65% 3.59% 4.74%
CLASS C 5.63% 4.93% 5.80%*
The inception date of the Class A shares is 12/14/92 and the inception date of
the Class C shares is 2/4/94.
*The performance presented links the performance of Class C shares which were
created on Feb. 4, 1994 with the performance of Class A shares which were the
only class of shares issued by the Fund from inception on Dec. 14, 1992. The
annualized since inception return of Class C shares from the date they were
created is 5.41%.
INTERMEDIATE GOVERNMENT BOND FUND
We became increasingly apprehensive over the bond market's prospects as 1995
drew to a close. In early 1996, we shortened the Fund's average maturity to its
minimum permissible three years. Several defensive high-coupon callable agencies
were substituted for Treasuries. Very short maturity agency discount notes were
also accumulated. The Fund only uses debt of those Agencies whose interest is
exempt from state income taxes in order to keep income from the Fund
predominantly exempt from state taxes. The defensive positioning proved well-
timed as the bond market began a sizable multiple-month sell-off in February. In
May we sold the discount notes and bought longer Treasuries in order to lengthen
the Fund back to a neutral position. The market has essentially chopped in a
range since then, proving the moves to be well-timed in hindsight. The Fund's
overall allocation to the non-callable agency sector was allowed to drift lower
over the course of the year as yield spreads versus comparable maturity Treasury
issues narrowed slightly.
Looking forward, our most likely scenario is that the market may continue to
consolidate its sell-off over the near term. We are currently maintaining the
average maturity of the Fund fairly close to its benchmark, but it is
conceivable that we may once again move the Fund to a more defensive posture if
conditions warrant. For the year ended September 30, 1996, the Fund posted a
total return of 4.85% compared to a return of 5.10% for the slightly broader
Lehman Intermediate Government Index. The Fund's effective average maturity was
3.55 years at the fiscal-year end.
VALUE OF A $10,000 INVESTMENT
* Lehman Intermediate-Term Government Bond Index
* First American Intermediate Government Bond Fund(Class A NAV)
* First American Intermediate Government Bond Fund(Class A POP)
[PLOT POINTS GRAPH]
12/31/87 10000 10000 9700
Sep-88 10575 10426 10114
Sep-89 11594 11241 10903
Sep-90 12588 12144 11780
Sep-91 14298 13392 12990
Sep-92 16078 14578 14141
Sep-93 17308 15306 14846
Sep-94 17048 15133 14679
Sep-95 18859 16619 16120
Sep-96 19821 17425 16902
Past performance of the Fund is not indicative of future performance. A $10,000
investment in the Fund's Class C shares at inception on 12/31/87 would have been
valued at $17,387 on 9/30/96.
One Annualized Annualized
Year Five Year Inception
Return Return To Date
------ ---------- ----------
CLASS A NAV 4.85% 5.41% 6.62%
CLASS A POP 1.68% 4.77% 6.25%
CLASS C 4.74% 5.39%* 6.61%*
The inception date of the Class A shares is 12/22/87 and the inception date of
the Class C shares is 2/4/94.
*The performance presented links the performance of Class C shares which were
created on Feb. 4, 1994 with the performance of Class A shares which were the
only class of shares issued by the Fund from inception on Dec. 22, 1987. The
annualized since inception return of Class C shares from the date they were
created is 4.76%.
FIXED INCOME FUND
The major surprises in the bond market in 1996 have been the strong pace of
economic activity and the sharp rise in interest rates, in spite of widespread
sentiment early in the year that the economy would weaken discernibly and that
interest rates would fall as a result.
Our view, on the contrary, has been that economic activity would remain
basically healthy throughout the year, and our market-analytic work suggested
that interest rates would rise this year rather than fall. Consequently, our
bond portfolio durations were shortened in late December at around 5.95% on long
Treasuries to 75% of the benchmark duration. In early May, durations were
lengthened to a neutral position in anticipation of a correction of the
sell-off. The result of that strategy is a sizable incremental return above that
of the bond market index over the past year as the Fund generated a total return
of 4.64% as compared to the total return of the Lehman Government/Corporate
Index of 4.51%.
Yield spreads on nongovernment securities are narrower than at any time in the
past six years both absolutely and as a percent of current yields and have been
relatively unattractive to us over the past year. Consequently, the Fund
continues to hold a mix of corporate bonds, mortgages and asset-backed
securities, but also has a somewhat higher weighting in Treasury securities than
would be the case if the yield advantage of other instruments were higher.
As is customarily the case, the average credit quality of the Fund remains quite
high and, in keeping with our philosophy of constraining risk in the portfolio,
the Fund does not own any leveraged derivatives or other high-risk instruments
that could undermine the Fund's return in adverse market conditions.
VALUE OF A $10,000 INVESTMENT
* Lehman Government/Corporate Bond Index
* First American Fixed Income Fund(Class A NAV)
* First American Fixed Income Fund(Class A POP)
[GRAPH PLOT POINTS]
12/31/87 10000 10000 9625
Sep-88 10656 10478 10085
Sep-89 11861 11597 11162
Sep-90 12662 12386 11921
Sep-91 14672 14076 13548
Sep-92 16613 15808 15215
Sep-93 18516 17262 16615
Sep-94 17750 16760 16131
Sep-95 20297 18902 18193
Sep-96 21212 19779 19037
Past performance of the Fund is not indicative of future performance. A $10,000
investment in the Fund's Class B shares on 8/31/94 would have been valued at
$11,034 on 9/30/96 assuming the maximum redemption charge occurs. A $10,000
investment in the Fund's Class C shares of 12/31/87 would have been valued at
$19,842.
One Annualized Annualized
Year Five Year Inception
Return Return To Date
------ ---------- ----------
CLASS A NAV 4.64% 7.05% 8.17%
CLASS A POP 0.70% 6.24% 7.70%
CLASS B NAV 3.93% N/A 6.85%
CLASS B CDSC -0.98% N/A 5.08%
CLASS C 4.90% 7.11% 8.21%
The inception date of the Class A shares is 12/22/87 and the inception date of
the Class C shares is 2/4/94.
*The performance presented links the performance of Class C shares which were
created on Feb. 4, 1994 with the performance of Class A shares which were the
only class of shares issued by the Fund from inception on Dec. 22, 1987. The
annualized since inception return of Class C shares from the date they were
created is 5.26%
FIRST AMERICAN TAX FREE FUNDS
The municipal bond market derives its value chiefly from the competing returns
available on Treasuries. Independent of this strong correlation, however, other
factors come into play such as: net new bond supply (after retirements);
profitability of casualty insurance companies (sometime major municipal bond
buyers); signal events in the municipal arena (such as, the Orange County, CA
bankruptcy); and Federal tax policy. Of these five factors, two were chiefly
operative in the Funds' fiscal 1996 year. Taxable interest rates rose across the
curve, with representative 10-year Treasury yields increasing from 6.10% to
6.60% year over year. Second, diminishing concern over the likelihood of the
"flat tax" proposals of 1995 becoming reality led municipal yields to increase
less, from 4.90% to just 5.00%. As a result, while prices were down for both
bond classes, municipals fell less.
INTERMEDIATE TAX FREE FUND
For the fiscal year ended September 30, 1996, the Fund produced a total return
of 4.45%, the product of sound tax-free interest income return and a slight fall
in unit value. In so doing, it just about equaled the return of the Lehman
7-year G.O. Index of 4.46%. During the fourth quarter of calendar 1995, the
portfolio was positioned as to average maturity much like its 7-year index. At
year end, however, the average maturity was shortened to less than 5.5 years
reflecting our concern that interest rates would rise and bond prices fall. This
protective move worked to the Fund's benefit. More normal average maturity
levels were sought as the bond market bottomed during the summer, and these
continued at fiscal-year end. Activity during the year included investing new
monies (Fund assets rose from approximately $46 to $69 million year-over-year)
as well as consummating trades to swap from bonds in overvalued market sectors
to areas suggesting a better likelihood of out performance.
VALUE OF A $10,000 INVESTMENT
* Lehman 7-Year G.O. Index
* First American Intermediate Tax-Free Fund(Class A NAV)
* First American Intermediate Tax-Free Fund(Class A POP)
[GRAPH PLOT POINTS]
12/31/87 10000 10000 9700
Sep-88 10550 10479 10164
Sep-89 11253 10989 10659
Sep-90 12029 11569 11222
Sep-91 13463 12625 12245
Sep-92 14745 13535 13128
Sep-93 16377 14707 14265
Sep-94 16223 14523 14087
Sep-95 17959 15852 15376
Sep-96 18760 16557 16060
Past performance of the Fund is not indicative of future performance. A $10,000
investment in the Fund's Class C shares on 12/31/87 would have been valued at
$16,541 on 9/30/96.
One Annualized Annualized
Year Five Year Inception
Return Return To Date
------ ---------- -----------
CLASS A NAV 4.45% 5.58% 6.00%
CLASS A POP 1.33% 4.93% 5.63%
CLASS C 4.35% 5.56%* 5.99%*
The inception date of the Class A shares is 12/22/87 and the inception date of
the Class C shares is 2/4/95.
*The performance presented links the performance of Class C shares which were
created on Feb. 4, 1994 with the performance of Class A shares which were the
only class of shares issued by the Fund from incpetion on Dec. 22, 1987. The
annualized since inception return of Class C shares from the date they were
creatd is 3.87%.
MINNESOTA INSURED INTERMEDIATE
TAX FREE FUND
For the fiscal year ended September 30, 1996, the Fund produced a total return
of 4.80%. In so doing, it exceeded the return of the Lehman 7-year G.O. Index of
4.46%. The Fund's maturity management activities paralleled those of the
Intermediate Term Tax-Free Fund and are noted on page 7. The Fund experienced
strong growth during the year, rising by over 50% to approximately $97 million
thus providing opportunity for the introduction of new bond holdings in the
portfolio. It is worth noting that municipal bond issuance continues to grow as
a percentage of total bond issuance.
VALUE OF A $10,000 INVESTMENT
* Lehman 7-Year G.O. Index
* First American Minnesota Insured Intermediate Tax-Free Fund(Class A NAV)
* First American Minnesota Insured Intermediate Tax-Free Fund(Class A POP)
[GRAPH PLOT POINTS]
2/28/94 10000 10000 9700
Sep-94 9919 9852 9557
Sep-95 10980 10686 10365
Sep-96 11470 11199 10863
Past performance of the Fund is not indicative of future performance. A $10,000
investment in the Fund's Class C shares at inception on 2/28/94 would have been
valued at $11,198 on 9/30/96.
One Annualized
Year Inception
Return To Date
------ ----------
CLASS A NAV 4.80% 4.38%
CLASS A POP 1.63% 3.16%
CLASS C 4.80% 4.38%
The inception date of the Class A and Class C shares is 2/25/94.
COLORADO INTERMEDIATE TAX FREE FUND
For the fiscal year ended September 30, 1996, the Fund produced a total return
of 4.39% compared to 4.46% for the Lehman 7-year G.O. Index. The Fund's maturity
management activities paralleled those of the Intermediate Tax Free Fund and are
noted on page 7.
Issuance increased 20% in the Colorado market in 1996, from a relatively weak
1995 calendar. Because of the above average growth in the economy, credit
quality has generally improved in the state. The national trend of increased
numbers of insured deals (rated AAA) was reflected in Colorado as well. The
stock market has been tough competition for bond funds during the past year.
Many bond funds have not grown or have actually shrunk in size. The Fund
maintained its size at approximately $50 million over this period.
VALUE OF A $10,000 INVESTMENT
* Lehman 7-Year G.O. Index
* First American Colorado Insured Intermediate Tax-Free Fund(Class A NAV)
* First American Colorado Insured Intermediate Tax-Free Fund(Class A POP)
[GRAPH PLOT POINTS]
4/30/94 10000 10000 9700
Sep-94 10104 10118 9814
Sep-95 11185 10985 10655
Sep-96 11684 11468 11123
Past performance of the Fund is not indicative of future performance. A $10,000
investment in the Fund's Class C shares on 4/30/94 would have been valued at
$11,468 on 9/30/96.
One Annualized
Year Inception
Return To Date
------ ----------
ClASS A NAV 4.39% 6.69%
CLASS A POP 1.21% 5.39%
CLASS C 4.39% 6.69%
The inception date of the Class A and Class C shares is 4/4/94.
ASSET ALLOCATION FUND
The Fund uses an objective, disciplined approach in determining asset allocation
following the recommended asset weightings produced by a proprietary
quantitative model. For the fiscal year ending September 30, 1996, the Fund
produced a total return of 12.09% compared to total returns of 20.32% and 4.51%
for the S&P 500 and Lehman Government/Corporate indices respectively. It also
compares favorably to the return of 12.33% for the Lipper Flexible Portfolio
fund average. Results were in line with the Fund's objective of providing a
long-term total return higher than that of the bond market, but with lower
volatility than that of the equity market.
The quantitative model maintained the greatest weight in equities consistently
during the fiscal year, as the model's calculated equity risk premium continued
to be attractive, but the weighting fluctuated during the year from a high of
63% to a low of 45%. The weighting in bonds also fluctuated during the year from
a low of 5% to a high of 24%, responding to the volatility in the bond market
during the time period. The cash weighting remained fairly stable during the
year at around 30%.
At the start of the year, the Fund held 58% equities, 9% bonds and 33% cash. The
Fund closed the year with 48% equities, 23% bonds and 29% cash. The model's
current recommended allocation, with the high level of cash, is predicting
modest returns in the near future for stocks and a little less than coupon
returns for bonds. The high level of cash also suggests a greater degree of
uncertainty with respect to the projected stock and bond market returns.
VALUE OF A $10,000 INVESTMENT
* Standard & Poor's 500 Composite Index
* First American Asset Allocation Fund(Class A NAV)
* First American Asset Allocation Fund(Class A POP)
* Lehman Government/Corporate Bond Index
[GRAPH PLOT POINTS]
12/31/92 10000 10000 9550 10000
Sep-93 10758 10750 10266 11138
Sep-94 11154 10945 10452 10677
Sep-95 14470 13080 12491 12209
Sep-96 17410 14661 14001 12760
Past performance of the Fund is not indicative of future performance. A $10,000
investment in the Fund's Class B shares on 8/31/94 would have been valued at
$12,520 on 9/30/96 assuming the maximum redemption charge occurs. A $10,000
investment in the Fund's Class C shares on 12/31/92 would have been valued at
$14,722 on 9/30/96.
One Three Annualized
Year Year Inception
Return Return To Date
------ ------ ----------
CLASS A NAV 12.09% 10.90% 10.75%
CLASS A POP 7.07% 9.20% 9.41%
CLASS B NAV 11.29% N/A 14.01%
CLASS B CDSC 6.29% N/A 12.37%
CLASS C 12.37% 11.06% 10.87%*
The inception date of the Class A shares is 12/14/92, the inception date of
Class B shares is 8/15/94, and the inception date of the Class C shares is
2/4/94.
*The performance presented links the performance of Class C shares which were
created on Feb. 4, 1994 with the performance of Class A shares which were the
only class of shares issued by the Fund from inception on Dec. 14, 1992. The
annualized since inception return of Class C shares from the date they were
created is 11.46%
BALANCED FUND
The Fund generated a total return of 15.61% for the fiscal year as compared with
4.51% for the Lehman Government/Corporate Bond Index and 20.32% for the S&P 500.
The Fund return compares very favorably to the Lipper Balanced Fund average of
12.46% for the same period.
The Fund's results were particularly attractive considering the slightly
conservative allocation of about 52% stocks, 40% bonds and 8% cash. The current
mix continues to reflect the belief that the valuation of both the stock and
fixed income markets are becoming very full.
Equities and fixed income instruments utilized in this Fund mirror those found
in the Stock and Fixed Income Funds. For further discussion of the performance
of these Funds, please review the Fixed Income Fund commentary on page 6 and the
Stock Fund commentary on page 12.
VALUE OF A $10,000 INVESTMENT
* Standard & Poor's 500 Composite Index
* First American Balanced Fund(Class A NAV)
* First American Balanced Fund(Class A POP)
* Lehman Government/Corporate Bond Index
[GRAPH PLOT POINTS]
12/31/92 10000 10000 9550 10000
Sep-93 10758 10978 10484 11138
Sep-94 11154 11311 10802 10677
Sep-95 14470 13637 13024 12209
Sep-96 17410 15766 15057 12760
Past performance of the Fund is not indicative of future performance. A $10,000
investment in the Fund's Class B shares on 8/31/94 would have been valued at
$12,989 on 9/30/96 assuming the maximum redemption charge occurs. A $10,000
investment in the Fund's Class C shares on 12/31/92 would have been valued at
$15,854 on 9/30/96.
One Three Annualized
Year Year Inception
Return Return To Date
------ ------ ----------
CLASS A NAV 15.61% 12.82% 12.91%
CLASS A POP 10.42% 11.09% 11.55%
CLASS B NAV 14.78% N/A 15.76%
CLASS B CDSC 9.78% N/A 14.15%
CLASS C 15.89% 13.04% 13.08%*
The inception date of the Class A shares is 12/14/92, the inception date of
Class B shares is 8/15/94, and the inception date of the Class C shares is
2/4/94.
*The performance presented links the performance of Class C shares which were
created on Feb. 4, 1994 with the performance of Class A shares which were the
only class of shares issued by the Fund from inception on Dec. 14, 1992. The
annualized since inception return of Class C shares from the date they were
created is 13.28%
REAL ESTATE SECURITIES FUND
The Fund's objective is to provide above average current income and long-term
capital appreciation by investing primarily in the equity securities of real
estate companies. For the fiscal year just ended, the Fund generated a total
return of 18.17% compared with 17.37% for the Lipper Real Estate Funds average.
The Fund provided an average gross dividend yield of approximately 6.5% for the
period.
Although Real Estate Investment Trusts (REITs) failed to keep pace with the
total return produced by the broader S&P 500 equity index for the period,
relative performance for the sector against the broader market improved during
the second half of the year. We believe the fundamentals for most segments of
the U.S. commercial real estate market remain very positive. The trend toward
securitization of U.S. commercial real estate continues, and new development is
still rare in most segments. Any new development appears to be increasingly
disciplined by still relatively tight lending criteria among the traditional
sources of capital to the market as well as by the increased scrutiny provided
by the public equity markets.
During the period, the Fund benefited from its overweighted position in the
office and industrial segment as well as an overweighted position in the hotel
segment added later in the year. The Fund's underweighting in retail companies
also aided performance. Strong performers included office and industrial
companies; Cali Realty, Spieker Properties and Weeks Corp. as well as
residential companies; Equity Residential Properties and Post Properties and
hotel holdings Patriot American Hospitality and Felcor Suite Hotels.
The Fund's strategy continues to emphasize the segments of the market with
strong long-term fundamentals. Geographically, the Fund emphasizes companies in
markets with above-average job and population growth prospects, always within
the context of healthy current and projected supply/demand balances. The Fund
also emphasizes companies with superior managements and high-quality properties
in advantageous locations.
VALUE OF A $10,000 INVESTMENT
* First American Real Estate Securities Fund(Class A NAV)
* Lipper Real Estate Funds Average
* First American Real Estate Securities Fund(Class A POP)
[GRAPH PLOT POINTS]
6/30/95 10000 10000 9550
Sep-95 10519 10518 10046
Sep-96 12431 12345 11871
Past performance of the Fund is not indicative of future performance. A $10,000
investment in the Fund's Class B shares on 9/29/95 would have been valued at
$11,400 on 9/29/96 assuming the maximum redemption charge occurs. A $10,000
investment in the Fund's Class C shares on 6/30/95 would have been valued at
$12,469 on 9/30/96.
One Annualized
Year Inception
Return To Date
------ ----------
CLASS A NAV 18.17% 18.12%
CLASS A POP 12.84% 12.80%
CLASS B NAV 17.00% 16.95%
CLASS B CDSC 12.00% 11.97%
CLASS C 18.53% 19.27%
The inception date of the Class A shares is 9/29/95, the inception date of Class
B shares is 9/29/95 and the inception date of the Class C shares is 6/30/95.
EQUITY INCOME FUND
The Fund generated a total return of 16.41% for the fiscal year, compared with
total return of 20.32% and 4.51% for the S&P 500 and Lehman Government/
Corporate indices respectively. Fund performance lagged that of the S&P 500, as
yield-oriented stocks failed to keep pace with the performance of the index. It
is generally anticipated that yield-oriented stocks will underperform the S&P
500 during strong markets and outperform during weak markets. The Fund's
investment strategy continues to emphasize equities with above average dividends
in order to meet its twofold investment objective of providing an above-average
current yield as well as long-term growth of capital and income. The Fund's
dividend income per share increased approximately 3% compared to the level a
year ago.
The Fund earned above-average returns on several of its largest holdings,
including General Electric, Newell, Mobil, and Johnson & Johnson, a
pharmaceutical company. The Fund also benefited from its other pharmaceutical
holdings, Pfizer and Abbott Laboratories. Drug company stock performance
continued to rebound during the period on strengthening pricing power, promising
new drug pipelines and receding regulatory fears. The banking industry also
exhibited strong performance during the period as industry consolidation and
cost cutting continued to win applause from investors. The Fund's holdings of
National City Corp. and Bank of New York were stand-out performers.
The Fund continues to hold an above average weighting in Real Estate Investment
Trusts (REITs), which offer some of the highest current yields available in the
equity market. The Fund's investment strategy continues to favor this sector
over the electric and telephone utility industries which also traditionally pay
above-average dividends. We believe that economic fundamentals within selected
commercial real estate markets are superior to those of the utility markets,
where competition continues to intensify, raising investment risk. Although the
REIT sector as a whole lagged the broader market performance for the fiscal
year, the Fund's holdings significantly outperformed the sector average.
Crescent Real Estate Equities, National Golf Properties and Weeks Corp. provided
very strong performance for the Fund.
VALUE OF A $10,000 INVESTMENT
* Standard & Poor's 500 Composite Index
* First American Equity Income Fund(Class A NAV)
* First American Equity Income Fund(Class A POP)
* Lehman Government/Corporate Bond Index
[GRAPH PLOT POINTS]
3/31/94 10000 10000 9550 10000
Sep-94 10532 10355 9889 9926
Sep-95 13663 12225 11675 11350
Sep-96 16439 14231 13591 11862
Past performance of the Fund is not indicative of future performance. A $10,000
investment in the Fund's Class B shares on 8/31/94 would have been valued at
$12,981 on 9/30/96 assuming the maximum redemption charge occurs. A $10,000
investment in the Fund's Class C shares on 3/31/94 would have been valued at
$14,300 on 9/30/96.
One Annualized
Year Inception
Return To Date
------ ----------
CLASS A NAV 16.41% 14.72%
CLASS A POP 11.17% 12.66%
CLASS B NAV 15.66% 15.64%
CLASS B CDSC 10.66% 14.03%
CLASS C 16.79% 14.94%*
The inception date of the Class A shares is 3/25/94, the inception date of
Class B shares is 8/15/94, and the inception date of the Class C shares is
8/4/94.
*The performance presented links the performance of Class C shares which
were created on Aug. 2, 1994 with the performance of Class A shares which were
the only class of shares issued by the Fund from inception on Mar. 25, 1994. The
annualized since inception return of Class C shares from the date they were
created is 16.34%.
Performance is presented for the period begining 3/25/94, the date First Bank
National Association became the Adviser of the Equity Income Fund. The inception
date of the Fund was 12/18/92. The per share income and capital charges for this
fund since 12/18/92 can be found in the financial highlights and the prospectus.
The average annual total return figures for one, five and ten year periods
(or from inception) are available upon request.
EQUITY INDEX FUND
VALUE OF A $10,000 INVESTMENT
* Standard & Poor's 500 Composite Index
* First American Equity Index Fund(Class A NAV)
* First American Equity Index Fund(Class A POP)
[GRAPH PLOT POINTS]
12/31/92 10000 10000 9550
Sep-93 10758 10751 10267
Sep-94 11154 11100 10601
Sep-95 14470 14308 13664
Sep-96 17410 17134 16363
Past performance of the Fund is not indicative of future performance. A $10,000
investment in the Fund's Class B shares on 8/31/94 would have been valued at
$14,425 on 9/30/96 assuming the maximum redemption charge occurs. A $10,000
investment in the Fund's Class C shares on 12/31/92 would have been valued at
$17,203 on 9/30/96.
One Three Annualized
Year Year Inception
Return Return To Date
------ ------ ----------
CLASS A NAV 19.75% 16.81% 15.39%
CLASS A POP 14.35% 15.03% 14.00%
CLASS B NAV 18.95% N/A 22.08%
CLASS B CDSC 13.95 N/A 20.57
CLASS C 19.98 16.97% 15.52
The inception date of the Class A shares is 12/14/92, the inception date of
Class B shares is 8/15/94, and the inception date of the Class C shares is
2/4/94.
*The performance presented links the performance of Class C shares which
were created on Feb. 4, 1994 with the performance of Class A shares which were
the only class of shares issued by the Fund from inception on Dec. 14, 1992. The
annualized since inception return of Class C shares from the date they were
created is 18.04%.
STOCK FUND
The Fund enjoyed strong investment performance over the past fiscal year
generating a total return of 23.90% which compares favorably with the S&P 500
which produced a total return of 20.32%. Longer-term performance comparisons
with the S&P 500 are also positive.
A significant contributor to these results was the correct identification of
corporate restructuring as an important market theme or catalyst. Our value
management group applied disciplined selection criteria that led to over half of
the portfolio's holdings reflecting some form of internal change, driven by
focused, shareholder-oriented management. A large portfolio position in the
financial sector and a deliberate underweighting of utilities also enhanced
investment performance. The application of the value-based selection discipline
led to a number of successful holdings during the past year. IBM, General
Electric, Monsanto, Chase Manhattan Corp., Compaq Computer Corp., American Home
Products, and Household International possessed unrecognized potential at time
of purchase and have developed into significant drivers of the Fund's
performance. The Fund's selection disciplines also helped the management group
avoid vulnerable stocks, driven to relatively high valuations by excessively
optimistic earnings expectations.
We believe that by focusing on stocks where investor expectations are modest and
valuation is correspondingly low, our shareholders' investment is subjected to
reduced risk while appreciation potential is enhanced. Our search for the
combination of low expectations, the potential for fundamental improvement and
an element of change that will capture the market's attention and position of
the Fund for continuing success.
VALUE OF A $10,000 INVESTMENT
* Standard & Poor's 500 Composite Index
* First American Stock Fund(Class A NAV)
* First American Stock Fund(Class A POP)
[GRAPH PLOT POINTS]
12/31/87 10000 10000 9550
Sep-88 11312 10494 10021
Sep-89 15044 13097 12508
Sep-90 13654 12121 11576
Sep-91 17911 15231 14545
Sep-92 19891 16428 15688
Sep-93 22476 19027 18170
Sep-94 23303 20617 19689
Sep-95 30232 25825 24663
Sep-96 36375 31997 30577
Past performance of the Fund is not indicative of future performance. A $10,000
investment in the Fund's Class B shares on 8/31/94 would have been valued at
$14,413 on 9/30/96 assuming the maximum redemption charge occurs. A $10,000
investment in the Fund's Class C shares on 12/31/87 would have been valued at
$32,167 on 9/30/96.
One Annualized Annualized
Year Five Year Inception
Return Return To Date
------ ---------- ----------
CLASS A NAV 23.90% 16.01% 14.27%
CLASS A POP 18.33% 14.95% 13.67%
CLASS B NAV 23.08% N/A 21.85%
CLASS B CDSC 18.08% N/A 20.33%
CLASS C 24.32% 16.13% 14.34%*
The inception date of the Class A shares is 12/22/87, the inception date of the
Class B shares is 8/15/94, and the inception date of the Class C shares is
2/4/94.
*The performance presented links the performance of Class C shares which were
created on Feb. 4, 1994 with the performance of Class A shares which were the
only class of shares issued by the Fund from inception on Dec. 22, 1987. The
annualized since inception return of Class C shares from the date they were
created is 19.01%
DIVERSIFIED GROWTH FUND
The Fund produced a total return of 17.38% during the past fiscal year, compared
to a total return for the S&P 500 of 20.32%. The performance for the full
twelve- month period was dampened because of weak results in the fourth quarter
of 1995, when many of the technology issues declined from their summer peaks.
After further weakness in mid-1996, the technology stocks rebounded very
strongly in the last quarter of the fiscal year.
Individual issues that aided performance in the past year included cisco, Intel,
Oracle, among the technology companies and Corning Inc., General Electric and
Dupont among other holdings. Telecommunication Inc. and United Healthcare
performed poorly partially offsetting the above gains. The technology companies
continued to achieve very strong sales and earning gains, generally surpassing
even the relatively strong expectations held by most investors. The gains were
driven by continued heavy spending on office equipment and networking products
by businesses. We believe the long-term prospects for the technology sector are
strong and remain overweighted in the technology sector.
A relatively strong overall economic environment contributed to the profit gains
shown by many of the Fund's holdings, aiding overall absolute performance which
pushed the Fund value to a new high.
We expect lesser profit gains in coming quarters, which should increase the
range of returns seen for individual companies, depending upon their own mix of
business and ability to meet investor expectations. The "blue chips" have been
winners during the past year, but their valuations are high and future gains
will be harder to achieve.
VALUE OF A $10,000 INVESTMENT
* Standard & Poor's 500 Composite Index
* First American Diversified Growth Fund(Class A NAV)
* First American Diversified Growth Fund(Class A POP)
[GRAPH PLOT POINTS]
3/31/94 10000 10000 9550
Sep-94 10532 10276 9814
Sep-95 13663 13484 12877
Sep-96 16439 15827 15115
Past performance of the Fund is not indicative of future performance. A $10,000
investment in the Fund's Class B shares on 8/31/94 would have been valued at
$14,529 on 9/30/96 assuming the maximum redemption charge occurs. A $10,000
investment in the Fund's Class C shares on 3/31/94 would have been valued at
$15,916 on 9/30/96.
One Annualized
Year Inception
Return To Date
------ ----------
CLASS A NAV 17.38% 18.90%
CLASS A POP 12.13% 16.74%
CLASS B NAV 16.41% 23.21%
CLASS B CDSC 11.41% 21.71%
CLASS C 17.58% 19.16%*
The inception date of the Class A shares is 3/25/94, the inception date of the
Class B shares is 8/15/94, and the inception date of the Class C shares is
8/2/94.
*The performance presented links the performance of Class C shares which were
created on Aug. 2, 1994 with the performance of Class A shares which were the
only class of shares issued by the Fund from inception on Mar. 25, 1994. The
annualized since inception return of Class C shares from the date they were
created is 23.69%
Performance is presented for the period beginning 3/25/94, the date First Bank
National Association became the Adviser of the Diversified Growth Fund. The
inception date of the Fund was 12/18/92. The per share income and capital
changes for this Fund since 12/18/92 can be found in the financial highlights
and the prospectus. The average annual total return figures for one, five and
ten year periods (or from inception) are available upon request.
SPECIAL EQUITY FUND
For the fiscal year ending September 30, 1996, the Special Equity Fund generated
a total return of 25.23% compared to the 20.32% return of the S&P 500. During
the past year, the Fund was transitioned to a new manager. The Fund's discipline
of investing in undervalued securities and industries has not changed; however,
cash weighting and industry concentrations have been reduced. In addition, the
Fund has moved toward a mid-cap orientation. All of these changes had a positive
impact on the Fund.
During the fiscal year, the Fund benefited from the personal computer
manufacturers group which was purchased when valuations were low. The Fund now
holds several names in the semiconductor equiment area as current prices do not
reflect the very positive long-term outlook for this industry. In addition, the
Fund holds numerous solid companies which we feel are undervalued due to
temporary problems such as Department 56, Value Health, Canandiaqua Wine,
and Browning Ferris.
VALUE OF A $10,000 INVESTMENT
* Standard & Poor's 500 Composite Index
* First American Special Equity Fund(Class A NAV)
* First American Special Equity Fund(Class A POP)
[GRAPH PLOT POINTS]
12/31/87 10000 10000 9550
Sep-88 11312 11752 11223
Sep-89 15044 13901 13275
Sep-90 13654 12505 11942
Sep-91 17911 15527 14829
Sep-92 19891 17875 17071
Sep-93 22476 21255 20299
Sep-94 23303 25237 24101
Sep-95 30232 28424 27145
Sep-96 36375 35595 33994
Past performance of the Fund is not indicative of future performance. A $10,000
investment in the Fund's Class B shares on 8/31/94 would have been valued at
$13,662 on 9/30/96 assuming the maximum redemption charge occurs. A $10,000
investment in the Fund's Class C shares on 12/31/87 would have been valued at
$35,770 on 9/30/96.
One Annualized Annualized
Year Five Year Inception
Return Return To Date
------ ---------- -----------
CLASS A NAV 25.23% 18.06% 15.66%
CLASS A POP 19.61% 16.98% 15.06%
CLASS B NAV 24.35% N/A 19.51%
CLASS B CDSC 19.35% N/A 17.96%
CLASS C 25.61% 18.19% 15.73%*
The inception date of the Class A shares is 12/22/87, the inception date of the
Class B shares is 8/15/94, and the inception date of the Class C shares is
2/4/94.
*The performance presented links the performance of Class C shares which were
created on Feb. 4, 1994 with the performance of Class A shares which were the
only class of shares issued by the Fund from inception on Dec. 22, 1987. The
annualized since inception return of Class C shares from the date they were
created is 17.13%
REGIONAL EQUITY FUND
In contrast to the previous year, performance of the Fund, while still up in
double digits, was not as strong against its benchmark. For the fiscal year
ending September 30, 1996, the Fund produced a total return of 10.97% compared
to a return of 13.15% for the Frank Russell 2000 Stock Index.
The Fund exceeded the benchmark through the first eight months of the year but
performance lagged during mid-summer. This was mainly attributable to the fact
that several of the larger holdings in the Fund including Digi and Aetrium as
well as several of the smaller health care companies, declined significantly due
to lowered expectations and a very weak market for smaller capitalization
stocks. Nonetheless, the Fund continues to own positions in these companies as
the longer-term outlook is still attractive.
Offsetting some of the weaker issues were very strong performances by a number
of issues including Dynamic Healthcare (which increased over fourfold during the
year) as well as appreciation exceeding 50% in Control Data, Regis, TSI Inc.,
and Tower Automotive. New positions were also established in Ballantyne, Dura
Automotive, MMI Companies, and Summit Medical late in the fiscal year. The
Fund's largest sector holdings are in the technology and consumer cyclical
areas.
The Fund continues to invest primarily in equity securities of small companies
headquartered in the Upper Midwest. Investment decisions are made using a
disciplined bottom-up approach focusing on companies whose stocks are
undervalued due to low name recognition among investors and which have
experienced shareholder-oriented management, and company-specific fundamentals
that grow shareholder value.
VALUE OF A $10,000 INVESTMENT
* First American Regional Equity Fund(Class A NAV)
* First American Regional Equity Fund(Class A POP)
* Frank Russell 2000 Stock Index
[GRAPH PLOT POINTS]
12/31/92 10000 9550 10000
Sep-93 10758 11142 11585
Sep-94 11154 11896 11894
Sep-95 14470 16794 14673
Sep-96 19514 18636 16602
Past performance of the Fund is not indicative of future performance. A $10,000
investment in the Fund's Class B shares on 8/31/94 would have been valued at
$14,971 on 9/30/96 assuming the maximum redemption charge occurs. A $10,000
investment in the Fund's Class C shares on 12/31/92 would have been valued at
$19,599 on 9/30/96.
One Three Annualized
Year Year Inception
Return Return To Date
------ ------ ----------
CLASS A NAV 10.97% 18.70% 20.20%
CLASS A POP 5.96% 16.91% 18.75%
CLASS B NAV 10.14% N/A 24.15%
CLASS B CDSC 5.14% N/A 22.66%
CLASS C 11.27% 18.90% 20.35%*
The inception date of the Class A shares is 12/14/92, the inception date of the
Class B shares is 8/15/94, and the inception date of the Class C shares is
2/4/94.
*The performance presented links the performance of Class C shares which were
created on Feb. 4, 1994 with the performance of Class A shares which were the
only class of shares issued by the Fund from inception on Dec. 14, 1992. The
annualized since inception return of Class C shares from the date they were
created is 19.29%
EMERGING GROWTH FUND
The Fund produced a total return of 13.21% during the fiscal year ending
September 30, 1996, compared to a return of 13.15% for the Frank Russell 2000
Stock Index. Small-capitalization companies continued to trail the performance
of the large capitalization companies as investors continued to favor the larger
and broader companies which are perceived to be safer and more predictable. We
think the relative trends are also partly due to the widely varied results
turned in by the small capitalization issues, many of which had relatively short
histories as public companies and perhaps overly optimistic expectations on the
part of investors. With the economy continuing to grow at a somewhat sluggish
pace, we continue to expect to see a fair proportion of the small-capitalization
issues underperform expectations, but at least the current valuations levels
have adjusted downward to leave some room for disappointments.
Leading performers for the Fund during the past year included Etec Systems,
Learning Tree International, Career Horizons, and BTG Inc. Weak performers
included Aetrium, Advanced Energy, and Fusion Systems. In general, the capital
equipment suppliers to the electronics producers suffered poor performance as
sales and profitability fell far below expectations. All three of the above-
named laggards fell in that group. Meanwhile, the market strongly favored
training firms such as Learning Tree and temp help providers such as Career
Horizons.
The small-capitalization stocks still have many instances of extreme valuations,
but we believe that more issues with strong prospects are available at
reasonable prices than was the case earlier in the year. We continue to be
actively investing in issues with strong longer-term growth prospects and
favorable profit prospects. New positions taken during the last quarter of the
fiscal year include Getty Communications, owner of rights to a portfolio of
millions of photographic images, and Siebel Systems, a company which sells
comprehensive sales force automation software which enhances the productivity of
company sales personnel.
VALUE OF A $10,000 INVESTMENT
* First American Emerging Growth Fund(Class A NAV)
* First American Emerging Growth Fund(Class A POP)
* Frank Russell 2000 Stock Index
[GRAPH PLOT POINTS]
4/30/94 10000 9550 10000
Sep-94 10472 10000 10217
Sep-95 13490 12883 12605
Sep-96 15272 14584 14260
Past performance of the Fund is not indicative of future performance. A $10,000
investment in the Fund's Class B shares on 8/31/94 would have been valued at
$14,171 on 9/30/96 assuming the maximum redemption charge occurs. A $10,000
investment in the Fund's Class C shares on 4/30/94 would have been valued at
$15,309 on 9/30/96.
One Annualized
Year Inception
Return To Date
------ ----------
CLASS A NAV 13.21% 19.06%
CLASS A POP 8.13% 16.88%
CLASS B NAV 12.32% 22.23%
CLASS B CDSC 7.32% 20.72%
CLASS C 13.39% 19.17%
The inception date of the Class A and Class C shares is 4/4/94, and the
inception date of the Class B shares is 8/15/94.
INTERNATIONAL FUND
Performance for the First American International Fund for the fiscal year ending
September 30, 1996 was 1.84% This compares to the Morgan Stanley EAFE Index
(Europe, Australia, Far East) performance of 8.6% in the same time period. The
best-performing markets were Spain, Ireland and Hong Kong up 24.1%, 24.0% and
23.1% respectively. Europe as a whole was up 14.3% while Japan was up a meager
0.4%. Underperformance was due to our overweighting in Japanese equities given
our belief that the economy would snap back more quickly than has been the case.
We have since reduced our positions in Japan in favor of Europe where the
prospects for a term, both economic and profit-wise, are more evident.
Our strategy remains bullish for foreign equities. There was concern earlier in
the year that worldwide growth and therefore inflation would accelerate. This
was evidenced by 50-100 basis point rises in long-term interest rates in Europe,
Japan, and the United States. The interest-rate environment, however, seems to
be stabilizing as worldwide growth appears to be slow, steady, and moderate.
This is a positive environment for equities.
Europe, and in particular Germany, while still suffering from sluggish growth
appears to be moving in the direction of restructuring an improved
organizational efficiency. This, coupled with easy central bank credit, presages
continued good equity performance. Our focus is on companies that are able to
grow earnings in a slow environment as well as firms that have franchises in
non-European markets -- this includes pharmaceuticals, retailers, media and
telecommunications.
Japan continues to struggle with the effects of a deep and prolonged recession
and the need for its companies to become more efficient. To this end, the
government has eased credit and encouraged the yen's decline versus the dollar.
While the jury continues to be out, the combination of an accommodative monetary
policy and a weaker yen should bode well for corporate revenue and profit
growth. The stock market should benefit.
We remain positive on the emerging markets as a secular growth story. Southeast
Asia continues to be the fastest- growing area of the world while the Latin
American economies are returning to growth rates seen before the Mexican peso
devaluation. P/E ratios are low and stocks are now cheap after a two-year bear
phase.
VALUE OF A $10,000 INVESTMENT
* Morgan Stanley EAFE Index
* First American International Income Fund(Class A NAV)
* First American International Income Fund(Class A POP)
[GRAPH PLOT POINTS]
4/30/94 10000 10000 9550
Sep-94 10094 10039 9587
Sep-95 10679 10108 9653
Sep-96 11600 10294 9831
Past performance of the Fund is not indicative of future performance. A $10,000
investment in the Fund's Class B shares on 8/31/94 would have been valued at
$9,418 on 9/30/96 assuming the maximum redemption charge occurs. A $10,000
investment in the Fund's Class C shares on 4/30/94 would have been valued at
$10,341 on 9/30/96.
One Annualized
Year Inception
Return To Date
------ ----------
CLASS A NAV 1.84% 1.95%
CLASS A POP -2.70% 0.07%
CLASS B NAV 1.02% 0.34%
CLASS B CDSC -3.95% -1.54%
CLASS C 2.11% 2.04%
The inception date of the Class A shares is 4/7/94, the inception date of the
Class B shares is 8/15/94, and the inception date of the Class C shares is
4/4/94.
HEALTH SCIENCES FUND
The Fund's total return was -1.32% since inception on February 1, 1996, compared
to the S&P 500 return of 9.8% in the same time period. The Lipper
Health/Biotechnology average return was 5.97% since February 1, 1996. The Fund
showed strength late in the last quarter as the smaller cap health care issues,
which make up much of the Fund's holdings, finally began to recover following a
summer of underperformance. Many of those issues reached relatively high
valuations early in the year and did not fall to more reasonable levels until
the summer market decline had nearly completed its move.
Individual issues that aided performance in the past quarter were Novoste
Corporation, Sano Corporation and Stryker Corporation. Underperforming issues
included Transitions Systems, Healthsource Inc., and Patterson Dental. In
common, the stronger performers had all fallen sharply in price in the two
months prior to the beginning of the quarter, and much of the gain in the
quarter was recovery in valuation which was justified by company prospects. The
weaker performers were largely driven downward by disappointing results.
Healthsource showed weaker profit margins, but still strong gains in membership,
which particularly and unpleasantly surprised the market. Patterson Dental (a
distributor of dental supplies) surprised with a sales slowdown. In addition,
many of the earlier-stage companies experienced declines in valuation which were
not made up as the quarter progressed.
Overall, we see many companies which are more favorably valued than was true six
months ago, giving the health sector significantly better valuation
characteristics currently. The Fund has recently added to its holdings of
medical information systems suppliers, given the recent decline in their
valuations. Demand for improved information products is very strong and we
expect expenditure levels to grow rapidly in the future as medical organizations
see the productivity gains that are possible.
Overall, there have been generally favorable pricing and usage patterns in the
health care field and, despite some concerns that Congress will take action to
solve Medicare problems in the coming year, we are encouraged about investment
prospects.
VALUE OF A $10,000 INVESTMENT
* Lipper Health & Biotechnology Funds Average
* First American Health Sciences Fund(Class A NAV)
* First American Health Sciences Fund(Class A POP)
[GRAPH PLOT POINTS]
1/30/96 10000 10000 9550
Sep-96 10558 9868 9424
Past performance of the Fund is not indicative of future performance. A $10,000
investment in the Fund's Class B shares on 1/31/96 would have been valued at
$9,313 on 9/30/96 assuming the maximum redemption charge occurs. A $10,000
investment in the Fund's Class C shares on 1/31/96 would have been valued at
$9,879 on 9/30/96.
One Three Cumulative
Month Month Inception
Return Return To Date
------ ------ ----------
CLASS A NAV 9.56% 4.89% -1.32%
CLASS A POP 4.67% 0.20% -5.75%
CLASS B NAV 9.36% 4.70% -1.86%
CLASS B CDSC 4.36% -0.30% -6.77%
CLASS C 9.54% 4.89% -1.20%
The inception date of the Class A, Class B, and Class C shares is 1/31/96
TECHNOLOGY FUND
The Fund produced a total return of 18.60% in fiscal year 1996 as compared to
7.67% for the Lipper Science and Technology Funds average. The Fund did well in
networking, telecommunications equipment, personal computer, and enterprise
software stocks. More important to returns was the low weighting in
semiconductor stocks, which experienced large corrections after five years of
almost uninterrupted run-ups. The Fund benefited significantly from
investments in Stratacom, Tellabs, Peoplesoft, Intel, Dell, Western Digital
and Parametric Technology.
We think our underweighting in semiconductors is about over and have begun to
move back into the group. Our PC weighting has been reduced as an offset. We
have become more selective in our enterprise software holdings and more
aggressive in telecommunications equipment. The telecommunications equipment
sector, barring a legal ruling overturning FCC deregulation rules in the
telephone industry, should continue to do well and we will increasingly look to
that sector in the future.
The technology sector continues to show strong sales growth with profitability
dependent on supply conditions within each sector. The group has had a very
strong five- year run so we are becoming more cautious about valuations and
profitability. Stock selection will be the key going forward, with higher
turnover and unconventional holdings. Our current largest holdings are Intel,
cisco, Oracle, Nokia, Tellabs and Peoplesoft; however, we are running with lower
concentrations in individual stocks and more small-capitalization names.
VALUE OF A $10,000 INVESTMENT
* First American Technology Fund(Class A NAV)
* First American Technology Fund(Class A POP)
* Lipper Science & Technology Funds Average
[GRAPH PLOT POINTS]
4/30/94 10000 9550 10000
Sep-94 11572 11051 10870
Sep-95 19235 18370 16985
Sep-96 22813 21786 18288
Past performance of the Fund is not indicative of future performance. A $10,000
investment in the Fund's Class B shares on 8/31/94 would have been valued at
$19,976 on 9/30/96 assuming the maximum redemption charge occurs. A $10,000
investment in the Fund's Class C shares on 4/30/94 would have been valued at
$22,885 on 9/30/96.
One Annualized
Year Inception
Return To Date
------ ----------
CLASS A NAV 18.60% 37.40%
CLASS A POP 13.26% 34.88%
CLASS B NAV 17.75% 44.80%
CLASS B CDSC 12.75% 43.56%
CLASS C 18.85% 37.51%
The inception date of the Class A and Class C shares is 4/4/94, and the
inception date of the Class B shares is 8/15/94.
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders
First American Funds, Inc.
First American Investment Funds, Inc.:
We have audited the accompanying statements of net assets (Statement of Assets
and Liabilities including the Schedule of Investments for Balanced Fund) as of
September 30, 1996, and the related statements of operations, the statements of
changes in net assets and the financial highlights for each of the three funds
constituting First American Funds, Inc. and each of the twenty funds
constituting First American Investment Funds, Inc. for each of the periods
presented. These financial statements and the financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and the financial highlights based on our
audits. The financial highlights of Equity Income Fund and Diversified Growth
Fund for the periods presented ended November 30, 1993 were audited by other
auditors whose reports dated January 20, 1994 expressed unqualified opinions on
this information.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and the financial
highlights are free of material misstatement. An audit also includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements. Investment securities held in custody are confirmed to us
by the custodian. As to securities purchased and sold but not received or
delivered, we request confirmations from brokers and where replies are not
received, we carry out other appropriate auditing procedures. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and the financial highlights referred
to above present fairly, in all material respects, the financial position of
each of the three funds constituting First American Funds, Inc. and each of the
twenty funds constituting First American Investment Funds, Inc. as of September
30, 1996, and the results of their operations, changes in their net assets and
the financial highlights for the periods presented, in conformity with generally
accepted accounting principles.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
November 8, 1996
STATEMENTS OF NET ASSETS ---- SEPTEMBER 30, 1996
PRIME OBLIGATIONS FUND
Description Par (000) Value (000)
COMMERCIAL PAPER -- 54.6%
Asset Securitization
5.437%, 10/21/96 (B) $6,000 $5,982
5.494%, 10/21/96 (B) 5,400 5,384
5.522%, 10/23/96 (B) 25,000 24,917
5.809%, 03/17/97 (B) 15,500 15,094
Banco Bradesco S A Grand Cayman
(LOC: Barclays Bank)
5.551%, 10/22/96 25,000 24,921
5.560%, 10/29/96 30,000 29,873
Banco de Credito Nacional S A
(LOC: Barclays Bank)
5.713%, 05/02/97 6,000 5,805
Banco Nacional de Mexico S A
(LOC: Barclays Bank)
5.414%, 10/17/96 30,000 29,928
5.586%, 11/05/96 10,000 9,947
5.616%, 11/25/96 10,000 9,916
5.631%, 11/25/96 15,000 14,874
Banco Real S A (LOC: Barclays Bank)
5.466%, 10/03/96 5,000 4,999
5.452%, 10/04/96 15,000 14,993
Bankers Trust NY
5.729%, 02/12/97 4,000 3,917
Beta Finance
5.378%, 11/14/96 (B) 17,000 16,890
5.393%, 11/18/96 (B) 25,000 24,823
5.393%, 11/18/96 (B) 25,000 24,823
5.683%, 12/30/96 (B) 6,000 5,917
BT Securities
5.366%, 10/11/96 30,000 29,956
Cemex S A (LOC: Credit Suisse)
5.494%, 11/14/96 20,000 19,867
Cofco Capital (LOC: Credit Suisse)
5.370%, 10/11/96 20,000 19,970
5.393%, 11/08/96 30,000 29,832
Credit Card Securitization
5.364%, 10/15/96 25,000 24,948
5.395%, 10/15/96 26,000 25,946
5.368%, 10/16/96 8,838 8,818
Crown Leasing USA
(LOC: Bank of Tokyo--Mitsubishi)
5.472%, 10/17/96 (B) 6,798 6,782
5.424%, 10/24/96 (B) 8,020 7,992
CS First Boston
5.366%, 10/10/96 20,000 19,973
5.525%, 10/16/96 10,000 9,977
5.360%, 10/18/96 30,000 29,925
5.525%, 10/24/96 15,000 14,948
Enterprise Funding
5.348%, 10/03/96 (B) 17,000 16,995
5.354%, 10/10/96 (B) 19,174 19,148
5.364%, 10/10/96 (B) 20,000 19,973
5.370%, 10/17/96 (B) 25,171 25,111
5.465%, 11/04/96 (B) 9,969 9,918
5.489%, 11/14/96 (B) 8,558 8,502
5.403%, 11/18/96 (B) 10,000 9,929
5.509%, 11/20/96 (B) 5,008 4,970
5.631%, 11/26/96 (B) 10,000 9,914
Equipment Funding
5.348%, 10/02/96 25,132 25,128
5.440%, 10/04/96 31,094 31,080
5.407%, 10/07/96 21,224 21,205
5.378%, 11/01/96 15,000 14,931
Equipment Intermediation Partnership
5.352%, 10/07/96 (B) 41,309 41,272
Finance One Funding (LOC: Credit Suisse)
5.930%, 03/21/97 (B) 8,000 7,784
5.932%, 03/21/97 (B) 12,400 12,065
First Deposit Master Trust
5.368%, 10/22/96 (B) 24,500 24,424
5.552%, 10/22/96 (B) 5,040 5,024
5.451%, 11/07/96 (B) 20,613 20,498
Grupo Financiero Bancomer S A Grand
Cayman BRH (LOC: Bank of Montreal)
5.400%, 10/22/96 50,000 49,844
Hartz 667
(LOC: Bank of Tokyo--Mitsubishi)
5.411%, 10/09/96 5,410 5,404
5.455%, 10/09/96 25,000 24,970
5.435%, 10/16/96 5,665 5,652
Hosokawa Micron International
(LOC: Bank of Tokyo--Mitsubishi)
5.435%, 10/16/96 14,500 14,467
International Lease Finance
5.505%, 10/02/96 15,000 14,998
5.475%, 10/18/96 7,731 7,711
5.563%, 11/04/96 28,000 27,855
International Securitization
(Guarantor: FNB Chicago)
5.404%, 11/12/96 (B) 40,000 39,751
5.500%, 01/03/97 (B) 8,433 8,314
5.564%, 01/15/97 (B) 11,967 11,774
5.582%, 02/12/97 (B) 11,734 11,497
5.731%, 02/18/97 (B) 16,048 15,699
5.701%, 02/27/97 (B) 12,316 12,033
5.739%, 02/27/97 (B) 15,376 15,020
5.677%, 03/24/97 (B) 14,412 14,027
Jefferson Smurfit Financial
5.519%, 10/16/96 7,500 7,483
5.513%, 10/22/96 5,775 5,757
5.380%, 11/05/96 11,100 11,043
5.392%, 11/19/96 6,800 6,751
5.412%, 11/26/96 6,300 6,248
5.535%, 12/02/96 12,500 12,382
5.538%, 12/06/96 12,500 12,375
5.705%, 03/11/97 6,200 6,046
Konica Finance USA
(LOC: Mitsubishi Bank)
5.445%, 10/10/96 (B) 23,100 23,069
Merrill Lynch
5.751%, 10/01/96 35,000 35,000
5.486%, 11/05/96 11,500 11,441
5.491%, 11/06/96 25,000 24,864
Pemex Capital (LOC: Swiss Bank)
5.507%, 10/01/96 14,000 14,000
5.552%, 10/10/96 5,000 4,993
Pooled Accounts Receivable Capital
5.426%, 10/11/96 (B) 15,080 15,057
5.445%, 10/21/96 (B) 20,189 20,128
5.456%, 10/21/96 (B) 30,000 29,910
5.476%, 10/21/96 (B) 25,000 24,924
5.432%, 11/14/96 (B) 22,200 22,054
Premium Funding
5.424%, 10/15/96 (B) 14,945 14,914
5.426%, 10/15/96 (B) 15,000 14,969
5.433%, 10/21/96 (B) 24,982 24,907
5.429%, 10/22/96 (B) 25,100 25,021
5.453%, 10/22/96 (B) 15,000 14,953
5.444%, 10/29/96 (B) 39,881 39,713
5.439%, 11/04/96 (B) 11,081 11,024
5.472%, 11/12/96 (B) 9,087 9,030
5.488%, 11/19/96 (B) 5,056 5,019
Receivables Capital
5.392%, 10/01/96 (B) 23,183 23,183
5.393%, 10/02/96 (B) 22,118 22,115
5.398%, 10/09/96 (B) 25,296 25,266
5.418%, 10/16/96 (B) 25,000 24,944
5.424%, 10/18/96 (B) 25,000 24,936
Sigma Finance
5.540%, 12/02/96 (B) 29,167 28,892
5.555%, 12/03/96 (B) 20,000 19,808
5.637%, 01/03/97 (B) 7,500 7,392
5.640%, 01/06/97 (B) 5,000 4,925
5.663%, 01/27/97 (B) 16,000 15,709
5.742%, 03/14/97 (B) 6,000 5,847
5.754%, 03/27/97 (B) 6,500 6,322
Towson Town Center
(LOC: Bank of Tokyo--Mitsubishi)
5.468%, 10/10/96 5,344 5,337
5.448%, 10/15/96 9,292 9,272
5.449%, 10/17/96 10,000 9,976
US Prime Property (LOC: Westpac Bank)
5.514%, 10/23/96 12,000 11,960
5.570%, 11/20/96 22,600 22,430
5.611%, 12/10/96 9,500 9,399
Westpac Capital
5.570%, 11/20/96 6,326 6,278
TOTAL COMMERCIAL PAPER
(Cost $1,865,890) 1,865,890
CORPORATE OBLIGATIONS--22.2%
American General Finance
7.570%, 10/15/96 13,800 13,810
7.150%, 05/15/97 9,000 9,055
Anchor National Life Insurance
Investment
5.500%, 10/01/96 (A) (C) 75,000 75,000
Associates of North America
7.620%, 04/29/97 5,000 5,048
BankAmerica
7.500%, 03/15/97 18,000 18,125
6.000%, 07/15/97 12,410 12,425
Bear Stearns
5.523%, 10/07/96 (A) 50,000 50,000
5.550%, 03/11/97 25,000 25,000
Beta Finance
5.460%, 10/01/96 (A) (B) 65,000 65,000
5.812%, 05/16/97 (B) 20,000 20,000
Commercial Credit Group
7.375%, 11/15/96 25,000 25,052
8.125%, 03/01/97 4,690 4,736
Ford Motor Credit
5.625%, 03/03/97 18,000 17,993
7.750%, 04/29/97 8,000 8,084
9.350%, 06/10/97 5,160 5,280
General Electric Capital
6.970%, 10/28/96 23,000 23,020
7.640%, 01/23/97 9,900 9,957
Household Finance
6.760%, 04/25/97 7,000 7,026
International Lease Finance
6.375%, 11/01/96 4,000 4,002
5.420%, 06/02/97 9,000 8,960
5.840%, 06/09/97 6,600 6,590
5.900%, 07/03/97 15,000 14,992
6.500%, 07/15/97 6,000 6,029
Merrill Lynch
5.580%, 03/14/97 25,000 25,000
Morgan Stanley
5.574%, 10/15/96 (A) 75,000 75,000
7.790%, 02/03/97 6,000 6,048
Structured Enhanced Return
Trust 1995 A-18
5.488%, 10/18/96 (A) (B) 35,000 35,000
Structured Products Asset Return
5.538%, 10/03/96 (A) (B) 100,000 100,000
Sun Life Insurance of America
5.750%, 10/01/96 (A) (C) 75,000 75,000
U.S. Leasing International
(Guarantee: Ford Motor Co.)
6.000%, 02/11/97 7,000 7,002
TOTAL CORPORATE OBLIGATIONS
(Cost $758,234) 758,234
U.S. GOVERNMENT AGENCY OBLIGATIONS--6.4%
Export-Import Bank
5.685%, 10/15/96 (A) (B) 70,455 70,444
Export-Import Bank/KA Leasing
5.645%, 10/15/96 (A) (B) 36,163 36,163
FHLB
5.830%, 10/01/96 (A) 25,000 25,010
5.700%, 10/03/96 (A) 25,000 25,004
SLMA
5.670%, 10/01/96 (A) 11,150 11,145
5.670%, 10/01/96 (A) 10,000 9,997
5.580%, 10/01/96 (A) 38,400 38,130
U.S. AID
5.920%, 10/01/96 (A) 1,250 1,248
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $217,141) 217,141
LOAN PARTICIPATION CERTIFICATES--5.6%
Barclays Bank (Cargill)
5.390%, 10/11/96 10,000 10,000
5.400%, 10/25/96 40,000 40,000
5.380%, 10/30/96 25,000 25,000
5.370%, 10/31/96 25,000 25,000
Barclays Bank (ITT Hartford)
5.360%, 10/24/96 17,500 17,500
Barclays Bank (National Rural Utilities)
5.350%, 10/04/96 25,000 25,000
CoreStates Bank (Weyerhauser Mortgage)
5.500%, 10/15/96 9,952 9,952
Toronto Dominion Bank (ITT Hartford)
5.370%, 10/01/96 17,500 17,500
Toronto Dominion Bank
(National Rural Utilities)
5.370%, 10/16/96 20,000 20,000
TOTAL LOAN PARTICIPATION CERTIFICATES
(Cost $189,952) 189,952
CERTIFICATES OF DEPOSIT--3.5%
Bank of America National Trust &
Savings, San Francisco, CA
4.900%, 02/12/97 20,000 19,952
FCC National Bank of Wilmington
5.500%, 03/14/97 50,000 49,991
Mercantile Safe Deposit & Trust
5.523%, 10/07/96 (A) (B) 25,000 25,000
5.523%, 10/07/96 (A) (B) 25,000 25,000
TOTAL CERTIFICATES OF DEPOSIT
(Cost $119,943) 119,943
ASSET-BACKED SECURITIES--3.3%
CARCO Auto Loan Master
Trust 1993-2 A1
5.559%, 10/15/96 (A) 111,500 111,500
TOTAL ASSET-BACKED SECURITIES
(Cost $111,500) 111,500
MASTER NOTES--1.5%
Goldman Sachs
5.470%, 10/01/96 (A) 50,000 50,000
TOTAL MASTER NOTES
(Cost $50,000) 50,000
REPURCHASE AGREEMENTS--2.9%
Prudential 5.72%, dated 09/30/96,
matures 10/01/96, repurchase price
$36,076,683 (collateralized by various
FNMA and FFCB Bonds, ranging in par
value from $8,970,000-$19,681,655,
0.00%-6.09%, 12/05/96-11/01/22: total
market value $36,795,955) 36,071 36,071
Salomon Brothers 5.76%, dated 09/30/96,
matures 10/01/96, repurchase price
$64,080,500 (collateralized by various
FHLMC and FNMA Bonds, ranging in par
value from $219,621-$7,619,999,
5.00%-10.00%, 07/01/98-09/01/26: total
market value $66,627,531) 64,070 64,070
TOTAL REPURCHASE AGREEMENTS
(Cost $100,141) 100,141
TOTAL INVESTMENTS--100.0%
(Cost $3,412,801) 3,412,801
NET OTHER ASSETS AND LIABILITIES, NET--0.0% (466)
NET ASSETS:
Portfolio shares--Institutional
Class ($.01 par value--20 billion
authorized) based on 3,166,203,533
outstanding shares $3,166,203
Portfolio shares--Retail Class A ($.01
par value--20 billion authorized) based
on 135,146,504 outstanding shares 135,147
Portfolio shares--Retail Class B ($.01
par value--20 billion authorized) based
on 1,763,346 outstanding shares 1,764
Portfolio shares--Corporate Trust Class
($.01 par value--20 billion authorized)
based on 109,212,779 outstanding shares 109,212
Undistributed net investment income 9
TOTAL NET ASSETS--100.0% $3,412,335
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER
SHARE--INSTITUTIONAL CLASS $ 1.00
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER
SHARE--RETAIL CLASS A $ 1.00
NET ASSET VALUE AND OFFERING PRICE PER SHARE--RETAIL CLASS
B (1) $ 1.00
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER
SHARE--CORPORATE TRUST CLASS $ 1.00
(1) Class B has a contingent deferred sales charge. For a description of
possible redemption charge, see the notes to the financial statements.
(A) Variable Rate Security-the rate reported on the Statement of Net Assets
is the rate in effect as of September 30, 1996. The date shown is the
next reset date.
(B) Security sold within terms of a private placement memorandum, exempt
from registration under Section 4(2) or 144A of the Securities Act of
1933, as amended, and may be sold only to dealers in that program or
other "accredited investors." These securities have been determined to
be liquid under guidelines established by the Board of Directors.
(C) Private Placement Securities considered illiquid investments.
AID--Agency for International Development
FFCB--Federal Farm Credit Bank
FHLB--Federal Home Loan Bank
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
LOC--Letter of Credit
SLMA--Student Loan Marketing Association
The accompanying notes are an integral part of the financial statements.
GOVERNMENT OBLIGATIONS FUND
Description Par (000) Value (000)
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- 50.5%
Export-Import Bank
5.645%, 10/15/96 (A) (B) $18,199 $18,199
5.685%, 10/15/96 (A) (B) 30,000 29,995
5.625%, 10/15/96 (A) (B) 25,000 25,000
FFCB
5.540%, 10/01/96 (A) 20,000 20,026
8.450%, 01/10/97 4,000 4,030
7.500%, 02/03/97 20,000 20,125
4.950%, 03/03/97 10,000 9,986
FHLB
5.540%, 10/01/96 (A) 13,000 12,970
5.750%, 10/03/96 (A) 25,000 25,048
5.433%, 12/04/96 (A) 20,000 19,982
5.420%, 01/02/97 10,000 10,000
5.035%, 03/06/97 21,340 21,315
6.880%, 04/07/97 8,015 8,058
5.680%, 05/09/97 15,000 15,006
5.555%, 05/22/97 10,000 9,988
6.630%, 05/23/97 10,000 10,063
FHLMC
5.670%, 10/03/96 (A) 15,000 15,001
7.880%, 12/20/96 4,655 4,678
5.360%, 03/28/97 15,000 14,969
FNMA
5.230%, 10/01/96 (A) 35,000 34,986
5.280%, 10/01/96 (A) 50,000 49,996
5.680%, 10/07/96 25,000 25,000
7.600%, 01/10/97 9,200 9,249
SLMA
5.670%, 10/01/96 (A) 15,000 15,000
5.510%, 10/01/96 (A) 10,000 10,000
5.510%, 10/01/96 (A) 20,000 20,000
5.580%, 10/01/96 (A) 14,000 13,978
U.S. AID
5.770%, 10/01/96 (A) 6,000 6,010
5.770%, 10/01/96 (A) 13,000 13,000
5.770%, 10/01/96 (A) 11,000 11,000
5.850%, 10/01/96 (A) 950 950
5.774%, 10/01/96 (A) 10,000 9,988
5.764%, 10/01/96 (A) 15,000 15,000
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $528,596) 528,596
OTHER U.S. GOVERNMENT OBLIGATIONS--10.0%
Downey Savings & Loan
(LOC: FHLB of San Francisco)
5.672%, 01/09/97 20,000 19,693
5.667%, 01/15/97 10,000 9,839
5.637%, 01/15/97 10,000 9,840
5.444%, 02/21/97 25,000 24,474
Fidelity Federal Bank, Los Angeles,
CA (LOC: FHLB of San Francisco)
5.440%, 10/01/96 14,943 14,943
5.362%, 10/25/96 15,000 14,948
5.377%, 11/18/96 11,000 10,922
TOTAL OTHER U.S. GOVERNMENT OBLIGATIONS
(Cost $104,659) 104,659
U.S. TREASURY OBLIGATIONS--3.8%
U.S. Treasury Notes
7.500%, 01/31/97 25,000 25,164
6.875%, 02/28/97 15,000 15,076
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $40,240) 40,240
REPURCHASE AGREEMENTS--35.5%
Bear Stearns 5.720%, dated 09/30/96,
matures 10/01/96, repurchase price
$150,023,833 (collateralized by various
U.S. Treasury STRIPS, ranging in par
value from $6,200,000-$50,000,000,
02/15/00-02/15/19: total market value
$153,072,000) 150,000 150,000
Daiwa Securities 5.750%, dated 09/30/96,
matures 10/01/96, repurchase price
$80,012,778 (collateralized by various
U.S. Treasury Notes, ranging in par
value from $36,000-$50,000,000,
5.125%-8.250%, 12/31/96-06/30/98: U.S.
Treasury Bond, par value $224,000,
13.875%, 05/15/11: total market value
$81,601,533) 80,000 80,000
Prudential, 5.720%, dated 09/30/96,
matures 10/01/96, repurchase price
$31,088,384 (collateralized by various
FNMA obligations, ranging in par value
from $6,965,000-$32,060,440 $39,025,440,
0.00%-7.252%, 12/30/96-04/01/24; total
market value $31,70 8,394) 31,083 31,083
Salomon Brothers, 5.760%, dated
09/30/96, matures 10/01/96, repurchase
price $110,613,047 (collateralized by
various FHLMC and FNMA obligations
ranging in par value from
$43,554-$24,614,622, 5.500%-10.00%,
05/01/97-09/01/26: total market value
$11 5,637,871) 110,595 110,595
TOTAL REPURCHASE AGREEMENTS
(Cost $371,678) 371,678
TOTAL INVESTMENTS--99.8%
(Cost $1,045,173) 1,045,173
OTHER ASSETS AND LIABILITIES, NET--0.2% 1,803
NET ASSETS:
Portfolio shares--Institutional Class
($.01 par value--20 billion authorized)
based on 777,589,636 outstanding shares 777,590
Portfolio shares--Corporate Trust Class
($.01 par value--20 billion authorized)
based on 269,382,152 outstanding shares 269,382
Undistributed net investment income 35
Accumulated net realized loss on investments (31)
TOTAL NET ASSETS--100.0% $1,046,976
NET ASSET VALUE, OFFERING PRICE, AND
REDEMPTION PRICE PER SHARE--INSTITUTIONAL CLASS $ 1.00
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER
SHARE--CORPORATE TRUST CLASS $ 1.00
(A) Variable Rate Security--the rate reported on the Statement of Net
Assets is the rate in effect as of September 30, 1996. The date shown
is the next reset date.
(B) Security sold within terms of a private placement memorandum, exempt
from registration under Section 4(2) or 144A of the Securities Act of
1933, as amended, and may be sold only to dealers in that program or
other "accredited investors." These securities have been determined to
be liquid under guidelines established by the Board of Directors.
AID--Agency for International Development
FFCB--Federal Farm Credit Bank
FHLB--Federal Home Loan Bank
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
LOC--Letter of Credit
SLMA--Student Loan Marketing Association
STRIPS--Seperately Trading of Registered Interest and Principal of
Securities
The accompanying notes are an integral part of the financial statements.
TREASURY OBLIGATIONS FUND
Description Par (000) Value (000)
U.S. TREASURY OBLIGATIONS -- 21.3%
U.S. Treasury Bills
5.269%, 01/09/97 $25,000 $24,650
5.637%, 02/06/97 25,000 24,545
5.499%, 03/06/97 25,000 24,428
5.505%, 04/03/97 25,000 24,331
5.690%, 05/01/97 25,000 24,198
5.785%, 05/29/97 25,000 24,082
U.S. Treasury Notes
8.000%, 10/15/96 50,000 50,048
7.500%, 01/31/97 65,000 65,454
6.750%, 02/28/97 25,000 25,109
6.875%, 03/31/97 25,000 25,156
6.500%, 04/30/97 50,000 50,212
8.500%, 05/15/97 25,000 25,441
5.875%, 07/31/97 25,000 25,037
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $412,691) 412,691
REPURCHASE AGREEMENTS--78.9%
BA Securities 5.260%, dated 09/27/96,
matures 10/04/96, repurchase price
$85,086,936 (collateralized by various
U.S. Treasury Notes, ranging in par value
from $4,940,000-$50,000,000,
5.625%-11.875%, 06/30/97-11/15/03:
total market value $86,807,669 85,000 85,000
Bear Stearns 5.720%, dated 09/30/96,
matures 10/01/96, repurchase price
$350,055,611 (collateralized by various
U.S. Treasury STRIPS, ranging in par
value from $3,840,000-$50,000,000,
02/15/97-02/15/13: total market value
$364,114,003) 350,000 350,000
BT Securities, 5.650%, dated 09/30/96,
matures 10/01/96, repurchase price
$85,013,340 (collateralized by U.S.
Treasury Note, total par value
$82,340,000, 8.250%, 07/15/98: total
market value $86,707,600) 85,000 85,000
BT Securities, 5.750%, dated 09/30/96,
matures 10/01/96, repurchase price
$300,047,917 (collateralized by various
U.S. Treasury STRIPS, ranging in par
value from $1,875,000-$50,000,000,
05/15/97-08/15/20: total market value
$313,446,000) 300,000 300,000
Daiwa Securities 5.750%, dated 09/30/96,
matures 10/01/96, repurchase price
$170,027,153 (collateralized by various
U.S. Treasury Notes, ranging in par value
from $44,370,000-$129,903,000,
4.750%-5.750%, 09/30/97-08/31/98:
total market value $173,400,790) 170,000 170,000
First Boston, 5.230%, dated 09/26/96,
matures 10/03/96, repurchase price
$85,086,440 (collateralized by
U.S. Treasury Bond, total par value
$85,485,000, 7.125%, 02/15/23:
total market value $87,101,201) 85,000 85,000
First Union Capital 5.220%, dated
09/26/96, matures 10/03/96, repurchase
price $85,086,275 (collateralized by
various U.S. Treasury Notes, ranging in
par value from $4,180,000-$50,000,000,
5.250%-7.250%, 11/30/96-02/15/98:
total market value $86,751,181) 85,000 85,000
Goldman Sachs, 5.280%, dated 09/25/96,
matures 10/02/96, repurchase price
$80,082,133 (collateralized by U.S.
Treasury Bond, total par value
$61,570,000, 9.875%, 11/15/15:
total market value $82,542,281) 80,000 80,000
Lehman Brothers, 5.240%, dated 09/27/96,
matures 10/01/96, repurchase price
$85,049,489 (collateralized by
U.S. Treasury Bond, total par value
$94,475,000, 6.250%, 08/15/23: total
market value $86,577,480) 85,000 85,000
Nomura Securities, 5.270%, dated
09/25/96, matures 10/02/96, repurchase
price $85,087,101 (collateralized by
various U.S. Treasury Notes, ranging in
par value from $3,525,000-$50,000,000,
5.625%-8.125%, 08/15/97-08/15/19:
total market value $88,013,230) 85,000 85,000
Prudential Securities, 5.350%, dated
09/30/96, matures 10/01/96, repurchase
price $28,617,252 (collateralized by
U.S. Treasury Note, total par value
$27,354,000, 7.750%, 11/30/99: total
market value $29,185,797) 28,613 28,613
UBS Securities, 5.360%, dated 09/30/96,
matures 10/01/96, repurchase price
$85,406,714 (collateralized by various
U.S. Treasury Notes, ranging in par
value from $15,000-$79,700,000, 6.375%-9.125%,
04/15/99-06/30/99:
total market value $87,103,259) 85,394 85,394
TOTAL REPURCHASE AGREEMENTS
(Cost $1,524,007) 1,524,007
TOTAL INVESTMENTS--100.2%
(Cost $1,936,698) $1,936,698
OTHER ASSETS AND LIABILITIES, NET--(0.2%) (3,176)
NET ASSETS:
Portfolio shares--Institutional Class ($.01
par value--20 billion authorized) based on
317,391,723 outstanding shares $ 317,392
Portfolio shares--Corporate Trust Class ($.01
par value--20 billion authorized) based on
1,616,105,019 outstanding shares 1,616,105
Undistributed net investment income 31
Accumulated net realized loss on investments (6)
TOTAL NET ASSETS--100.0% $1,933,522
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE
PER SHARE--INSTITUTIONAL CLASS $ 1.00
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE
PER SHARE--CORPORATE TRUST CLASS $ 1.00
STRIPS-- Separately Trading of Registered Interest and Principal of Securities
xxx
The accompanying notes are an integral part of the financial statements.
LIMITED TERM INCOME FUND
Description Par (000) Value (000)
ASSET-BACKED SECURITIES--76.3%
ADJUSTABLE RATE MORTGAGES--4.0%
Merrill Lynch Mortgage Investors
1993-C A4
6.438%, 03/15/18 (A) $4,000 $4,000
4,000
AUTO COMPANY SUBSIDIARIES--AUTO--5.3%
Premier Auto Trust 1993-4 B
4.950%, 02/02/99 896 891
Premier Auto Trust 1994-2 B
6.500%, 05/02/00 2,146 2,153
Premier Auto Trust 1994-3 B
6.800%, 12/02/99 2,310 2,324
5,368
BANKS--AUTO--4.7%
Boulevard Auto Trust 1993-1 A
4.550%, 10/15/98 212 211
New South Auto Trust 1994-B A
8.475%, 01/15/01 1,733 1,762
Western Financial Grantor Trust 1993-2 A2
4.700%, 10/01/98 1,081 1,065
Western Financial Grantor Trust 1994-3 B
6.650%, 12/01/99 1,194 1,201
Zions Auto Trust 1993-1 B
5.650%, 06/15/99 492 492
4,731
BANKS--BOATS & RV--5.9%
CFC Grantor Trust TR14
7.150%, 11/15/06 (B) 3,519 3,532
Chemical Financial Acceptance 1991-A A
6.450%, 12/15/97 2,533 2,530
6,062
BANKS--CREDIT CARD RECEIVABLES--13.9%
Banc One Credit Card Master Trust 1994-B
7.550%, 12/15/99 4,250 4,326
Household Credit Card Master
Trust 1995-1 B
5.854%, 12/15/02 (A) 4,200 4,211
MBNA Master Credit Card
Trust 1994-B A
5.770%, 01/15/02 (A) 5,500 5,498
14,035
BUSINESS CREDIT--BUSINESS--1.7%
Leasing Solution Receivables 1994-1 A
5.575%, 03/15/99 146 145
Leasing Solution Receivables 1994-2 A
8.075%, 12/15/99 866 874
Orix Credit Alliance Owner Trust 1993-A A2
4.300%, 08/17/98 398 395
Orix Credit Alliance Owner
Trust 1993-C B
4.600%, 08/17/98 266 263
1,677
CONSUMER FINANCE--AUTO--8.0%
AFG Receivables Trust 1995-A A
6.150%, 09/15/00 3,344 3,333
Auto Bond Receivables Trust 1993-1 A
6.125%, 11/15/98 789 751
Budget Fleet Finance 1994-A A
6.023%, 04/25/00 (A) (B) 4,075 4,080
8,164
CONSUMER FINANCE--FIRST MORTGAGE RELATED--5.1%
Prudential Home Mortgage
Securities 1992-A D2-1
7.450%, 04/28/22 (B) 2,899 2,897
Saxon Mortgage Securities 1994-4A 1A2
5.250%, 04/25/24 2,259 2,222
5,119
CONSUMER FINANCE--SECOND MORTGAGE RELATED--5.6%
HFC Home Equity Loan Trust 1992-2 B
6.850%, 11/20/12 1,184 1,157
Household Finance 1993-1 A3
4.750%, 05/20/08 1,231 1,221
Household Finance 1991-3 A3
6.100%, 11/20/06 481 482
IMC Home Equity Loan Trust 1996-2 A1
6.610%, 08/25/10 2,819 2,813
5,673
EQUIPMENT LEASES--3.6%
JLC Lease Receivables Trust 1994-1 A
5.770%, 12/22/99 (A) 3,375 3,375
World Omni Leasing 1993-1 B
5.000%, 05/17/99 237 237
3,612
MORTGAGE BANKERS & LOANS--SECOND
MORTGAGE RELATED--10.4%
BCI Home Equity Loan 1994-1 B
6.040%, 03/29/44 (A) 1,823 1,829
Greentree Financial 1995 A-A1
7.000%, 04/15/20 369 370
The Money Store Home Equity Loan
Trust 1992-D1 A1
6.500%, 01/15/04 1,792 1,795
The Money Store Home Equity Loan
Trust 1993-B A1
5.400%, 08/15/05 1,978 1,913
The Money Store Home Equity Loan
Trust 1994-C1 A1
6.775%, 09/15/07 323 323
The Money Store Trust Series
1994-D1 A2
8.000%, 09/15/07 4,339 4,377
10,607
RETAIL MALL MORTGAGES--4.0%
Potomac Mills Finance 1C
6.681%, 10/20/04 (A) (B) 4,000 4,008
VACATION HOME MORTGAGES--4.1%
Patten 1995-1A
7.375%, 08/01/11 (A) (B) 2,642 2,647
RCI Vacation Ownership Mortgage
Trust 1991-B
7.500%, 08/25/98 (B) 1,468 1,468
4,110
Total Asset-backed Securities
(Cost $77,154) 77,166
OTHER MORTGAGE-BACKED OBLIGATIONS--6.5%
Capstead Securities IV 1992-3 B
8.000%, 06/25/22 1,876 1,878
General Electric Capital Mortgage
1994-29 A1
8.300%, 11/25/24 3,882 3,841
General Electric Capital Mortgage
1995-1 A1
8.350%, 02/25/25 114 114
Mortgage Obligation Structured
Trust 1993-1 A1
6.350%, 10/25/18 656 660
RTC 1992-11 A1A
7.000%, 10/25/24 23 23
Total Other Mortgage-backed Obligations
(Cost $6,498) 6,551
TAXABLE MUNICIPAL BONDS--2.0%
Colorado Health Facilities Authority (RB)
6.000%, 07/01/25 (A) 2,000 2,000
TOTAL TAXABLE MUNICIPAL BONDS 2,000
(Cost $2,000)
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED
OBLIGATIONS--1.5%
FHLMC 1229-G
6.800%, 07/15/05 766 765
FHLMC 1606-B
4.750%, 01/15/01 105 105
FNMA 1989-65 G
8.650%, 08/25/18 690 686
TOTAL U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED OBLIGATIONS
(Cost $1,560) 1,561
Description Shares/Par (000) Value (000)
RELATED PARTY MONEY MARKET FUNDS--9.5%
First American Government
Obligations Fund (C) 4,845,086 $4,845
First American Prime
Obligations Fund (C) 4,819 4,819,399
TOTAL RELATED PARTY MONEY MARKET FUNDS
(Cost $9,664) 9,664
REPURCHASE AGREEMENT--4.2%
Merrill Lynch 5.627%, dated
09/30/96, matures 10/01/96,
repurchase price $4,235,147
(collateralized by U.S. Treasury
STRIPS, total par value
$19,945,000, 02/15/18:
market value $4,319,289) $4,234 4,234
TOTAL REPURCHASE AGREEMENT
(Cost $4,234) 4,234
TOTAL INVESTMENTS--100.0%
(Cost $101,111) 101,176
OTHER ASSETS AND LIABILITIES, NET--0.0% 39
NET ASSETS:
Portfolio shares--Institutional Class ($.0001
par value--2 billion authorized) based on
9,447,417 outstanding shares 96,965
Portfolio shares--Retail Class A ($.0001
par value--2 billion authorized) based on 769,840
outstanding shares 8,273
Distributions in excess of net investment income (1)
Accumulated net realized loss on investments (4,087)
Net unrealized appreciation of investments 65
TOTAL NET ASSETS--100.0% $ 101,215
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--INSTITUTIONAL CLASS $ 9.91
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE--RETAIL CLASS A $ 9.91
MAXIMUM SALES CHARGE OF 2.00% (1) 0.20
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 10.11
(1) The offer price is calculated by dividing the net asset value by 1
minus the maximum sales charge of 2.00%.
(A) Variable Rate Security--the rate reported on the Statement of Net
Assets is the rate in effect as of September 30, 1996.
(B) Security sold within the terms of a private placement memorandum,
exempt from registration under section 144A of the Securities Act of
1933, as amended, and may be sold only to dealers in that program or
other "accredited investors." These securities have been determined to
be liquid under guidelines established by the Board of Directors.
(C) These money market funds are advised by First Bank National Association
who also serve as Adviser for the Fund. See also the Notes to the
Financial Statements.
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
RB--Revenue Bond
RTC--Resolution Trust Corporation
STRIPS--Separately Trading of Registered Interest and Principal of
Securities
The accompanying notes are an integral part of the financial statements.
INTERMEDIATE TERM INCOME FUND
Description Par (000) Value (000)
TOTAL U.S. TREASURY OBLIGATIONS--73.0%
U.S. TREASURY NOTES
4.750%, 02/15/97 $ 1,500 $1,496
6.000%, 05/31/98 19,665 19,644
6.750%, 05/31/99 19,075 19,299
6.250%, 08/31/00 10,275 10,215
5.625%, 11/30/00 4,650 4,513
6.250%, 02/15/03 9,000 8,850
6.500%, 08/15/05 9,685 9,556
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $73,671) 73,573
CORPORATE OBLIGATIONS--11.1%
Bear Stearns
6.500%, 06/15/00 2,800 2,754
Cigna
7.400%, 01/15/03 3,075 3,087
GMAC
7.650%, 01/16/98 2,385 2,424
Metropolitan Life Insurance
6.300%, 11/01/03 (A) 3,155 2,985
TOTAL CORPORATE OBLIGATIONS
(Cost $11,447) 11,250
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED
OBLIGATIONS--5.9%
FHLMC
6.000%, 11/15/08 3,500 3,255
8.000%, 10/15/20 2,630 2,691
FNMA
14.750%, 03/01/12 1 1
TOTAL U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED OBLIGATIONS
(Cost $6,095) 5,947
OTHER MORTGAGE-BACKED OBLIGATIONS--4.5%
Drexel Burnham Lambert Trust S2
9.000%, 08/01/18 68 70
Kidder Peabody Mortgage Assets Trust 6F
7.950%, 07/20/18 97 97
MDC Mortgage Funding P3
8.200%, 11/20/17 8 8
Prudential Home Mortgage
Securities 1992-A3
7.000%, 04/25/99 1,065 1,065
Prudential Home Mortgage
Securities 1994-28
6.765%, 09/25/01 2,247 2,210
RTC 1991-M6 B2
7.000%, 06/25/21 1,151 1,133
TOTAL OTHER MORTGAGE-BACKED OBLIGATIONS
(Cost $4,554) 4,583
Description Par (000)/Shares Value (000)
ASSET-BACKED SECURITIES--3.3%
Fleet Finance Home Equity 1990-1
8.900%, 01/16/06 45 46
Household Finance Home
Equity 1993-2 A3
4.650%, 12/20/08 1,326 1,302
Zale Funding Series 94-1, Cl B
7.500%, 05/15/03 2,000 1,997
TOTAL ASSET-BACKED SECURITIES
(Cost $3,321) 3,345
RELATED PARTY MONEY MARKET FUND--0.9%
First American Prime
Obligations Fund (B) 859,258 859
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $859) 859
TOTAL INVESTMENTS--98.7%
(Cost $99,947) 99,557
OTHER ASSETS AND LIABILITIES, NET--1.3% 1,358
NET ASSETS:
Portfolio shares--Institutional Class ($.0001
par value--2 billion authorized) based on
9,942,822 outstanding shares 98,484
Portfolio shares--Retail Class A ($.0001
par value--2 billion authorized) based on 222,917
outstanding shares 2,271
Distributions in excess of net investment income (1)
Accumulated net realized gain on investments 551
Net unrealized depreciation of investments (390)
TOTAL NET ASSETS--100.0% $100,915
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER
SHARE--INSTITUTIONAL CLASS $ 9.93
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE--RETAIL CLASS A $ 9.93
MAXIMUM SALES CHARGE OF 3.75% (1) 0.39
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 10.32
(1) The offer price is calculated by dividing the net asset value by 1
minus the maximum sales charge of 3.75%.
(A) Security sold within the terms of a private placement memorandum,
exempt from registration under section 144A of the Securities Act of
1933, as amended, and may be sold only to dealers in that program or
other "accredited investors." These securities have been determined to
be liquid under guidelines established by the Board of Directors.
(B) This money market fund is advised by First Bank National Association
who also serve as the Adviser for this Fund. See also the Notes to the
Financial Statements.
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
GMAC--General Motors Acceptance Corporation
RTC--Resolution Trust Corporation
The accompanying notes are an integral part of the financial statements.
INTERMEDIATE GOVERNMENT BOND FUND
Description Par (000)/Shares Value (000)
U.S. TREASURY OBLIGATIONS--86.5%
U.S. Treasury Notes
6.500%, 08/15/97 $ 5,200 $ 5,229
7.375%, 11/15/97 10,000 10,156
7.875%, 04/15/98 13,000 13,349
5.125%, 11/30/98 6,300 6,170
6.750%, 05/31/99 15,890 16,076
6.875%, 07/31/99 3,000 3,044
7.125%, 09/30/99 16,000 16,355
6.875%, 03/31/00 2,000 2,031
6.250%, 05/31/00 1,500 1,492
6.250%, 08/31/00 14,000 13,918
7.875%, 08/15/01 5,500 5,817
7.500%, 11/15/01 5,750 5,998
7.500%, 05/15/02 1,000 1,047
7.250%, 05/15/04 9,500 9,835
7.875%, 11/15/04 9,500 10,208
6.500%, 08/15/05 3,500 3,453
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $122,404) 124,178
U.S. GOVERNMENT AGENCY OBLIGATIONS--10.9%
FHLB Callable 05/04/98 @ 100
7.360%, 05/04/01 1,070 1,079
FHLB Callable 05/05/97 @ 100
6.890%, 05/05/99 1,500 1,504
FHLB Callable 09/08/97 @ 100
7.120%, 09/08/99 2,000 2,010
FHLB
7.750%, 02/26/97 3,000 3,026
7.870%, 12/15/97 3,000 3,066
6.975%, 07/26/99 1,000 1,015
7.440%, 08/10/01 1,000 1,032
TVA
6.000%, 11/01/00 3,000 2,932
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $15,639) 15,664
RELATED PARTY MONEY MARKET FUND--0.8%
First American Government
Obligations Fund (A) 1,119,583 1,120
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $1,120) 1,120
TOTAL INVESTMENTS--98.2%
(Cost $139,163) 140,962
OTHER ASSETS AND LIABILITIES, NET--1.8% 2,588
Description Value (000)
NET ASSETS:
Portfolio Shares--Institutional Class ($.0001 par value--2
billion authorized) based on 15,273,099 outstanding shares $138,427
Portfolio Shares--Retail Class A ($.0001 par value--2
billion authorized) based on 361,319 outstanding shares 3,391
Accumulated net realized loss on investments (67)
Net unrealized appreciation of investments 1,799
TOTAL NET ASSETS--100.0% $143,550
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER
SHARE--INSTITUTIONAL CLASS $ 9.18
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE--RETAIL
CLASS A $ 9.19
MAXIMUM SALES CHARGE OF 3.00% (1) 0.28
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 9.47
(1) The offer price is calculated by dividing the net asset value by 1
minus the maximum sales charge of 3.00%
(A) ThIs money market fund is advised by First Bank National Association
who also serve as the Adviser for this Fund. See also the Notes to the
Financial Statements.
FHLB--Federal Home Loan Bank
TVA--Tennessee Valley Authority
The accompanying notes are an integral part of the financial statements.
FIXED INCOME FUND
Description Par (000) Value (000)
U.S. TREASURY OBLIGATIONS--54.8%
U.S. Treasury Bond
7.125%, 02/15/23 $ 72,505 $ 73,010
U.S. Treasury Notes
6.000%, 05/31/98 54,120 54,063
6.750%, 05/31/99 37,130 37,565
6.250%, 08/31/00 29,210 29,038
5.625%, 11/30/00 8,175 7,935
6.250%, 02/15/03 11,240 11,053
6.500%, 08/15/05 14,590 14,396
U.S. Treasury STRIPS
0.000%, 02/15/99 1,055 913
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $229,825) 227,973
CORPORATE OBLIGATIONS--14.5%
Bear Stearns
9.125%, 04/15/98 1,000 1,040
8.750%, 03/15/04 1,000 1,078
Cigna
7.400%, 01/15/03 10,475 10,514
General Foods
6.000%, 06/15/01 1,440 1,382
GMAC
7.350%, 01/27/98 11,000 11,138
6.150%, 05/11/98 2,025 2,017
Metropolitan Life Insurance
6.300%, 11/01/03 (B) 11,990 11,346
NationsBank
7.750%, 08/15/04 1,000 1,032
Santander Financial Issuances
7.250%, 05/30/06 15,915 15,756
Torchmark
9.625%, 05/01/98 250 261
7.875%, 05/15/23 5,000 4,856
TOTAL CORPORATE OBLIGATIONS
(Cost $60,879) 60,420
OTHER MORTGAGE-BACKED OBLIGATIONS--13.1%
Collateralized Mortgage Corporation 88-13 C
8.000%, 09/20/19 96 97
Countrywide Mortgage-Backed
Securities 1994-GA3
6.500%, 04/25/24 2,380 2,311
Drexel Burnham Lambert Trust S-2
9.000%, 08/01/18 598 610
General Electric Capital Mortgage
1994-11 A1
6.500%, 03/25/24 5,074 5,047
General Electric Capital Mortgage
1994-17 A6
7.000%, 05/25/24 7,000 6,749
General Electric Capital Mortgage
1994-17 A7
7.000%, 05/25/24 5,179 4,930
General Electric Capital Mortgage
1994-29 A1
8.300%, 11/25/24 4,225 4,271
Goldman Sachs Trust 1 A
6.065%, 05/01/17 (A) 6,215 6,204
J.P. Morgan Commercial Mortgage
Finance 1995-C1 B
7.619%, 07/25/10 (A) 10,329 10,229
Merrill Lynch Mortgage Investors
1993-A4
6.438%, 03/15/18 (A) 6,000 6,000
Prudential Home Mortgage Securities
1994-28
6.765%, 09/25/01 (A) 5,901 5,804
Prudential Home Mortgage Securities
1994-6 A3
7.000%, 04/25/99 456 457
Residential Funding 1992-36 A2 P11
5.700%, 11/25/07 680 672
RTC 1991-M6 B2
7.000%, 06/25/21 (B) 909 895
TOTAL OTHER MORTGAGE-BACKED OBLIGATIONS
(Cost $53,759) 54,276
U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED OBLIGATIONS--8.0%
FHLMC
7.000%, 04/17/06 14,447 14,511
6.000%, 11/15/08 1,275 1,186
6.500%, 12/15/23 5,439 4,875
6.500%, 01/15/24 6,877 5,643
7.000%, 02/15/24 7,133 6,837
TOTAL U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED OBLIGATIONS
(Cost $33,153) 33,052
ASSET-BACKED SECURITIES--2.5%
CoreStates Home Equity Trust 1994-2 A2
7.000%, 10/15/09 6,500 6,471
Zale Funding 1994-1B
7.500%, 05/15/03 (B) 4,100 4,093
TOTAL ASSET-BACKED SECURITIES
(Cost $10,253) 10,564
TAXABLE MUNICIPAL BONDS--1.9%
Minneapolis, Minnesota, Single Family
Mortgage, Callable 10/01/05 @ 100 (RB)
6.920%, 04/01/09 7,160 6,856
San Diego County, California, Pension
Obligation, Series A (RB) (AMBAC)
6.560%, 08/15/06 1,000 959
TOTAL TAXABLE MUNICIPAL BONDS
(Cost $8,130) 7,815
Description Shares Value (000)
RELATED PARTY MONEY MARKET FUND--3.8%
First American Prime
Obligations Fund (C) 15,838,153 $ 15,838
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $15,838) 15,838
TOTAL INVESTMENTS--98.6%
(Cost $411,837) 409,938
OTHER ASSETS AND LIABILITIES, NET--1.4% 5,697
NET ASSETS:
Portfolio Shares--Institutional Class ($.0001 par
value--2 billion authorized) based on 36,360,388
outstanding shares 389,804
Portfolio Shares--Retail Class A ($.0001 par
value--2 billion authorized) based on 773,634
outstanding shares 8,556
Portfolio Shares--Retail Class B ($.0001 par
value--2 billion authorized) based on 1,501,772
outstanding shares 16,353
Undistributed net investment income 31
Accumulated net realized gain on investments 2,790
Net unrealized depreciation of investments (1,899)
TOTAL NET ASSETS--100.0% 415,635
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--INSTITUTIONAL CLASS $ 10.76
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE--RETAIL CLASS A 10.77
MAXIMUM SALES CHARGE OF 3.75% (1) 0.42
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 11.19
NET ASSET VALUE AND OFFERING PRICE PER
SHARE--RETAIL CLASS B (2) $ 10.72
(1) The offer price is calculated by dividing the net asset value by 1
minus the maximum sales charge of 3.75%
(2) Retail Class B has a contingent deferred sales charge. For a
description of possible redemption charge, see the notes to the
financial statements
(A) Variable Rate Security--the rate reported on the Statement of Net
Assets is the rate in effect as of September 30, 1996.
(B) Security sold within the terms of a private placement memorandum,
exempt from registration under section 144A of the Securities Act of
1933, as amended, and may be sold only to dealers in that program or
other "accredited investors". These securities have been determined to
be liquid under guidelines established by the Board of Directors.
(C) This money market fund is advised by First Bank National Association
who also serve as the Adviser for the Fund. See also the Notes to the
Financial Statements.
AMBAC--American Municipal Bond Assurance Company
FHLMC--Federal Home Loan Mortgage Corporation
GMAC--General Motors Acceptance Corporation
RB--Revenue Bond
RTC--Resolution Trust Corporation
STRIPS--Separately Trading of Registered Interest and Principal
of Securities
The accompanying notes are an integral part of the financial statements.
INTERMEDIATE TAX FREE FUND
Description Par (000) Value (000)
MUNICIPAL BONDS--97.0%
ARIZONA--3.1%
Maricopa County, School District #41,
Pre-refunded @ 101 (GO)
6.800%, 07/01/99 (B) $1,000 $1,073
Salt River, Salt River Agricultural Project,
Series B (RB)
5.050%, 01/01/06 1,100 1,096
2,169
CALIFORNIA--12.8%
Azusa Redevelopment Agency, Single
Family Mortages, Escrowed To Maturity,
Series A (RB) (FNMA)
6.400%, 10/01/02 1,000 1,074
California State Health Facilities
Authority,
Callable 10/01/98 @ 102 (RB) (CMI)
7.250%, 10/01/99 500 529
Contra Costa, Water District,
Callable 10/01/04 @ 102 (RB) (MBIA)
5.800%, 10/01/07 1,000 1,040
Orange County, Transportation Authority,
Callable 02/15/02 @ 102 (RB)
5.700%, 02/15/03 200 207
San Diego, District #1 Park Facilities,
Callable 01/01/04 @ 101 (GO)
5.625%, 01/01/06 1,000 1,031
Suisun City, Redevelopment Agency
Tax Allocation, Pre-refunded @ 102 (RB)
7.250%, 04/01/00 (B) 990 1,095
Tri-City California Hospital District,
Series B (RB) (MBIA)
5.750%, 02/15/03 (D) 2,870 2,974
University of California, Series C,
Callable 09/01/03 @ 102 (RB) (AMBAC)
4.750%, 09/01/15 1,000 878
8,828
COLORADO--10.4%
Arvada, Sales & Use Tax,
Callable 12/01/02 @ 100 (RB) (FGIC)
5.900%, 12/01/05 1,000 1,028
Colorado Springs, Crossover Refunding,
Series A (RB)
6.350%, 11/15/01 1,000 1,070
Colorado State Health Facilities Authority,
Vail Valley Medical Center, Series A (RB)
5.300%, 01/15/00 500 500
5.450%, 01/15/01 500 500
Colorado State Housing Finance Authority,
Single Family Mortgages,
Callable 08/01/99 @ 102 (RB) (FHA/VA)
7.400%, 08/01/09 665 686
Northglenn, Water & Sewer (GO) (FSA)
5.250%, 12/01/02 (D) 2,500 2,566
Summit County, School
District #1 (GO) (FGIC)
0.000%, 12/01/03 1,325 924
7,274
FLORIDA--1.5%
Reedy Creek, Utility, Callable
10/01/97 @ 102 (RB) (AMT) (MBIA)
8.900%, 10/01/03 1,000 1,063
GEORGIA--2.0%
Fulton County Development
Authority, Callable 01/01/06
@ 102 (RB) (CLE) (MBIA)
5.125%, 01/01/10 1,500 1,423
IDAHO--1.4%
Boise City, Refunding Notes,
Callable 02/01/01 @ 106 (RB)
4.500%, 02/01/04 1,000 960
ILLINOIS--3.2%
Illinois State Development Finance
Authority,
Lockport Township High
School (RB) (FGIC)
0.000%, 01/01/01 1,500 1,209
Kane County, School District #131,
Aurora East Side (GO) (FSA)
5.300%, 01/01/03 1,000 1,020
2,229
INDIANA--0.6%
Indiana State Housing Finance Authority,
Callable 01/01/98 @ 102.5 (RB) (FPI)
7.800%, 01/01/99 415 426
Perry Township, Multi-School Building,
Escrowed To Maturity (RB) (STAID)
7.000%, 07/01/97 15 15
441
IOWA--0.1%
Davenport, Home Ownership Mortgages,
Series 1994 (RB)
4.000%, 03/01/03 45 44
KENTUCKY--4.3%
Ashland Oil Project (RB) (SWB)
3.700%, 04/01/09 (A) 3,000 3,000
MARYLAND--1.5%
Maryland State and Local Facilities, Series Z,
Callable 06/01/04 @ 100 (GO)
5.400%, 06/01/07 1,000 1,021
MICHIGAN--0.7%
Michigan State Building Authority, Series I
(RB) (AMBAC)
5.000%, 10/01/03 500 501
MINNESOTA--10.0%
Bloomington, Mall of America, Series A,
Callable 02/01/04 @ 100 (RB) (FSA)
5.450%, 02/01/09 1,000 1,018
Minneapolis, Childrens Medical Center,
Series C, Pre-refunded @ 102 (RB)
7.000%, 06/01/01 (B) 1,000 1,116
Minneapolis, Hennepin Avenue,
Series C, Escrowed to Maturity (GO)
6.200%, 03/01/02 800 858
Minnesota State, Series A (RB) (AMBAC)
5.000%, 06/30/00 2,000 2,020
Southern Minnesota Municipal Power Agency,
Callable 01/01/03 @ 102 (RB) (FGIC)
5.000%, 01/01/06 500 488
Wayzata, School District, Series B,
Callable 02/01/03 @ 100 (GO) (FGIC)
4.900%, 02/01/07 1,500 1,440
6,940
MISSISSIPPI--1.3%
Delta Correctional Facilities Authority
(RB) (MLO) (FGIC) (FSA)
4.950%, 07/01/01 925 928
MISSOURI--1.5%
Kansas City, School District (RB)
(MLO) (FGIC)
6.300%, 02/01/00 1,000 1,053
NEBRASKA--6.6%
Nebraska State Educational Finance
Authority,
Creighton University Project,
Callable 01/01/06 @ 101 (RB) (AMBAC)
5.600%, 01/01/07 2,500 2,553
Nebraska State Public Power District,
Nuclear
Facility Project (RB)
5.200%, 07/01/00 1,000 1,016
Nebraska State Public Power District,
Callable 01/01/03 @ 102 (RB) (MBIA)
4.900%, 01/01/04 1,000 994
4,563
NEW JERSEY--5.8%
Essex County, Public Improvements
(GO) (AMBAC)
4.875%, 11/15/03 1,000 998
New Jersey State (GO)
5.000%, 07/15/01 3,000 3,049
4,047
NEW MEXICO--1.0%
Farmington, Utility Systems,
Escrowed to Maturity (RB)
10.000%, 01/01/02 615 696
NEW YORK--2.0%
New York State Environmental Facilities,
Pollution
Control,Callable 11/15/04 @ 102 (RB)
6.400%, 05/15/06 1,250 1,380
NORTH DAKOTA--1.5%
Bismarck, Hospital Authority
(RB) (AMBAC)
6.250%, 05/01/99 1,000 1,038
OHIO--1.5%
Ohio State Building Authority, Juvenile
Correctional Facilities Projects
(RB) (AMBAC)
5.900%, 10/01/03 1,000 1,068
OKLAHOMA--0.4%
Oklahoma County, Housing Finance
Authority, Pre-refunded @ 56.9 (RB)
0.000%, 03/01/06 (B) 790 275
OREGON--0.7%
Deschutes & Jefferson Counties,
School District (GO) (MBIA)
5.000%, 06/01/02 500 507
PENNSYLVANIA--1.6%
Northumberland County, Commonwealth
Lease, Pre-refunded @ 100
(RB) (MLO) (MBIA)
6.600%, 10/15/01 (B) 1,000 1,086
PUERTO RICO--0.3%
Housing Finance Authority, Single
Family Mortgages (RB) (GNMA)
5.800%, 10/15/00 125 128
6.000%, 02/01/02 (AMT) 110 113
241
RHODE ISLAND--1.8%
Rhode Island State, Consolidated Capital
Development, Series B, Pre-refunded
@ 102 (GO)
6.125%, 05/15/00 (B) 1,200 1,278
SOUTH DAKOTA--0.8%
Sioux Falls (GO) (MLO)
6.450%, 08/01/01 500 538
TEXAS--2.6%
Texas State Turnpike Authority, President
George Bush Turnpike, Callable
01/01/06 @ 102 (RB) (FGIC)
5.000%, 01/01/25 2,000 1,807
UTAH--0.8%
Intermountain Power Authority,
Callable 07/01/98 @ 102 (RB)
7.625%, 07/01/08 500 532
VIRGINIA--6.9%
Brunswick County, Industrial
Development Authority, Callable
07/01/06 @ 102 (RB) (MBIA) (MLO)
5.550%, 07/01/08 750 757
Peninsula Regional Jail Authority
(RB) (MBIA)
5.300%, 10/01/09 1,000 975
Riverside, Regional Jail Authority,
Callable 07/01/05 @ 102 (RB) (MBIA)
5.700%, 07/01/08 2,000 2,055
Virginia Beach, Callable 11/01/04
@ 102 (GO) (STAID)
5.500%, 11/01/05 1,000 1,037
4,824
WASHINGTON--2.4%
Washington State Public Power Supply
Systems,
Nuclear Project #2, Callable
01/01/01 @ 102 (RB)
7.500%, 07/01/03 1,500 1,656
WASHINGTON D.C.--0.3%
District of Columbia, Callable 06/01/98
@ 101.5 (GO) (MBIA)
6.750%, 06/01/01 200 209
WISCONSIN--5.6%
Franklin, Public Improvements
(GO) (PN) (FSA)
4.900%, 09/01/04 850 844
Milwaukee County,
09/01/02 @ 100 (GO)
5.550%, 09/01/03 1,000 1,025
Milwaukee County, Pre-refunded
@ 100 (GO) (AMT)
7.300%, 10/01/96 (B) 1,000 1,000
Oak Creek, Water Works System, (RB)
5.600%, 12/01/96 25 25
Wisconsin State Health & Educational
Facilities Authority, Medical College of
Wisconsin (RB)
4.800%, 12/01/99 1,000 1,002
3,896
Description Shares Value (000)
TOTAL MUNICIPAL BONDS
(Cost $66,830) $67,515
MONEY MARKET FUND--3.5%
Federated Tax Free Money Market 2,439,911 2,440
TOTAL MONEY MARKET FUND
(Cost $2,440) 2,440
TOTAL INVESTMENTS--100.5%
(Cost $69,270) 69,955
OTHER ASSETS AND LIABILITIES, NET--(0.5%) (343)
NET ASSETS:
Portfolio shares--Institutional Class
($.0001 par value--2 billion authorized)
based on 6,289,564 outstanding shares 65,930
Portfolio shares--Retail Class A ($.0001 par
value--2 billion authorized) based on
245,627 outstanding shares 2,628
Undistributed net investment income 17
Accumulated net realized gain on investments 352
Net unrealized appreciation of investments 685
TOTAL NET ASSETS--100.0% $69,612
NET ASSET VALUE, OFFERING PRICE, AND
REDEMPTION PRICE PER SHARE--INSTITUTIONAL
CLASS $ 10.65
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE--RETAIL CLASS A $ 10.66
MAXIMUM SALES CHARGE OF 3.00% (1) 0.33
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 10.99
(1) The offer price is calculated by dividing the net asset value by 1
minus the maximum sales charge of 3.00%.
(A) Variable Rate Security--the rate reported on the Statement of Net
Assets is the rate in effect as of September 30, 1996.
(B) Pre-refunded Security--the pre-refunded date is shown as the maturity
date on the Statement of Net Assets.
(C) Mandatory Put Security--the mandatory put date is shown as the maturity
date on the Statement of Net Assets.
(D) At September 30, 1996, the cost of securities purchased on a
when-issued basis was $2,961,000 for Tri City California Hospital
District and $2,573,000 for Northglenn Water & Sewer.
AMBAC--American Municipal Bond Assurance Company
AMT--Alternative Minimum Tax
CLE--Connie Lee
CMI--California Municipal Insurers
FGIC--Federal Guaranty Insurance Corporation
FHA--Federal Housing Authority
FNMA--Federal National Mortgage Association
FPI--Foremost Pool Insurance
FSA--Financial Security Assurance
GNMA--Government National Mortgage Association
GO--General Obligation
MBIA--Municipal Bond Insurance Association
MLO--Municipal Lease Obligation
PN--Promissory Notes
RB--Revenue Bond
STAID--State Aid Withholding
SWB--Swiss Bank
VA--Veterans Administration
The accompanying notes are an integral part of the financial statements.
MINNESOTA INSURED INTERMEDIATE TAX FREE FUND
Description Par (000) Value (000)
MUNICIPAL BONDS--94.8%
MINNESOTA--94.8%
Anoka County, Capital Improvement,
Series C (GO)
5.550%, 02/01/05 $2,000 $2,040
Anoka-Hennepin, School District #11,
Callable 02/01/03 @ 100 (GO) (FGIC)
4.875%, 02/01/07 1,800 1,726
Becker, Pollution Control, Callable
04/01/99 @ 102 (RB)
6.800%, 04/01/07 3,900 4,158
Becker, Tax Increment, Series D,
Callable 08/01/04 @ 100 (GO)
(AMT) (MBIA)
6.000%, 08/01/07 2,500 2,619
Bloomington, Mall of America Project,
Series A, Callable 02/01/04 @
100 (RB) (FSA)
5.450%, 02/01/09 2,850 2,900
Coon Rapids, Multi-Family Housing,
Woodland North Apartments,
Callable 12/01/03 @ 100 (RB) (FHA)
5.625%, 12/01/09 480 474
Coon Rapids, Single Family Mortgages,
Callable 09/01/04 @ 102 (RB)
5.900%, 09/01/06 355 362
Dakota County, Callable 02/01/98 @ 100
7.250%, 02/01/04 1,000 1,034
Dakota County, Housing & Redevelopment
Authority, Callable 04/01/05 @ 102 (RB)
(AMT) (FNMA/GNMA)
6.000%, 10/01/14 1,375 1,354
Dakota County, Housing & Redevelopment
Authority, Single Family Mortgages,
Callable 09/01/98 @ 103 (RB)
(FHA/GNMA/VA)
7.250%, 03/01/06 625 626
Dakota, Washington, & Stearns Counties,
Single Family Mortgages, Callable
03/01/04 @ 102 (RB) (AMT) (FNMA)
6.000%, 09/01/04 650 665
Duluth, Economic Development Authority,
Health Care Facility, Escrowed to Maturity
(RB) (AMBAC)
6.100%, 11/01/04 250 272
Duluth, Economic Development Authority,
Health Care Facility, Unrefunded Balance,
Callable 11/01/02 @ 102 (RB) (AMBAC)
6.100%, 11/01/04 650 699
Fridley, School District #14,Callable
02/01/05 @ 100 (GO) (FSA)
5.350%, 02/01/26 2,000 1,890
Minneapolis & St. Paul, Housing &
Redevelopment Authority, Health Care,
Callable 08/15/00 @ 102 (RB) (MBIA)
7.300%, 08/15/01 1,000 1,104
Minneapolis & St. Paul, Housing &
Redevelopment Authority, Health Care,
Series A (RB) (AMBAC)
4.600%, 11/15/02 500 489
Minneapolis & St. Paul, Housing &
Redevelopment Authority, Health Care
System, Health One Obligated Group,
Series C, Pre-refunded @ 102 (RB)
8.000%, 08/15/00 (B) 1,000 1,138
Minneapolis & St. Paul, Housing Finance
Board, Callable 11/01/04 @ 102
(RB) (AMT) (FNMA/GNMA)
6.800%, 11/01/08 1,500 1,618
Minneapolis & St. Paul, Housing Finance
Board, Single Family Mortgages,
Series A, Callable 06/01/99 @ 102
(RB) (AMT) (FHA/GNMA/VA)
7.875%, 12/01/12 30 30
Minneapolis & St. Paul, Metropolitan Airport,
Callable 01/01/99 @ 102 (RB) (AMT)
7.800%, 01/01/11 2,900 3,092
Minneapolis, Community Development
Agency (RB) (MBIA)
7.000%, 03/01/01 2,500 2,728
Minneapolis, Health Care Facilities,
Callable 11/15/03 @ 102 (RB) (MBIA)
5.100%, 11/15/05 1,000 988
Minneapolis, Mortgage Revenue,
Callable 10/01/05 @ 100 (RB)
0.000%, 10/01/12 2,950 962
Minneapolis, Public Improvement,
Escrowed to Maturity (GO)
5.300%, 11/01/99 1,500 1,551
Minneapolis, Refunding Bond, Series B,
Callable 09/01/05 @ 100 (GO)
5.050%, 03/01/06 3,000 2,970
Minneapolis, School District #1 (RB)
(MLO) (AMBAC)
5.300%, 02/01/02 1,000 1,011
Minnesota State Housing & Redevelopment
Authority, Single Family Mortgages,
Callable 04/01/04 @ 102 (RB)
(AMT) (FNMA)
6.250%, 10/01/04 1,065 1,088
Minnesota State Housing Finance Agency,
Rental Housing, Series D (RB) (MBIA)
5.150%, 08/01/04 1,000 996
Minnesota State Housing Finance Agency,
Rental Housing, Series D, Callable
02/01/05 @ 102 (RB) (MBIA)
5.450%, 08/01/07 2,000 1,993
Minnesota State Housing Finance
Agency, Single Family Mortgages,
Series D, Callable 01/01/04 @ 102
(RB) (AMBAC)
4.800%, 07/01/04 800 786
Minnesota State, Pre-refunded @
100 (GO)
6.800%, 08/01/98 (B) 2,790 2,923
Northern Minnesota Municipal
Power Agency, Series A,
Callable 01/01/03 @ 102
(RB) (AMBAC)
5.700%, 01/01/05 2,500 2,591
Northern Minnesota Municipal
Power Agency, Series A,
Callable 01/01/99 @ 102
(RB) (AMBAC)
7.250%, 01/01/00 700 751
Olmsted County, Housing &
Redevelopment Authority, Pre-refunded
@ 100 (RB)
7.000%, 02/01/01 (B) 1,025 1,120
Osseo, Independent School District,
Callable 02/01/03 @ 100 (GO) (FGIC)
5.400%, 02/01/05 500 503
Pipestone, Industrial Development,
Cargill Project (RB)
5.000%, 09/01/00 1,890 1,909
Plymouth Health Facilities, Callable
06/01/04 @ 102 (RB) (CGIC)
6.200%, 06/01/11 1,360 1,411
Ramsey & Washington Counties, Resource
Recovery, Northern State Power, Series A,
Callable 12/1/97 @ 103 (RB)
6.200%, 12/01/00 1,000 1,047
Robbinsdale, North Memorial Medical
Center, Series B (RB) (AMBAC)
5.100%, 05/15/03 1,000 1,011
Rochester, St. Mary's Hospital, Escrowed
to Maturity (RB)
5.750%, 10/01/07 3,000 3,086
Savage, Public Improvement (GO) (FGIC)
5.200%, 02/01/05 1,000 1,002
Savage, Public Improvement, Callable
02/01/06 @ 100 (GO) (FGIC)
5.500%, 02/01/08 1,000 1,010
5.350%, 02/01/07 1,000 1,004
Southern Minnesota Municipal Power
Agency (RB) (MBIA)
0.000%, 01/01/20 2,000 512
Southern Minnesota Municipal Power
Agency, Series A (RB) (MBIA)
0.000%, 01/01/21 2,500 603
Southern Minnesota Municipal Power
Agency, Series B (RB) (MBIA)
4.850%, 01/01/07 1,875 1,786
Southern Minnesota Municipal
Power Agency, Callable 01/01/03
@ 102 (RB) (FGIC)
5.000%, 01/01/06 500 488
Southern Minnesota Municipal Power Agency,
Refunded Balance, Series A, Escrowed
to Maturity, Callable 01/01/03 @ 102 (RB)
5.600%, 01/01/04 895 945
St. Louis Park, Hospital Revenue Facilities,
Methodist Hospital, Series C, Pre-refunded
@ 102 (RB) (AMBAC)
7.250%, 07/01/00 (B) 1,500 1,665
St. Louis Park, Hospital Revenue
Facilities, Methodist Hospital, Series C,
Pre-refunded @ 102 (RB) (AMBAC)
7.150%, 07/01/00 (B) 1,240 1,373
St. Paul, Callable 06/01/03 @ 100
(RB) (AMBAC)
5.350%, 12/01/04 800 804
St. Paul, Housing & Redevelopment
Authority, Callable 03/01/05 @ 102
(RB) (FNMA)
6.125%, 03/01/17 485 487
St. Paul, Housing & Redevelopment
Authority, St. Paul Heart & Lung Center,
Mandatory Put @ 100 (RB)
4.700%, 12/01/00 (C) 500 497
St. Paul, Housing and Redevelopment
Authority, Downtown & Seventh Place
Project (RB) (AMBAC)
4.850%, 09/01/01 2,000 2,000
St. Paul, School District #625,
Series C (RB) (FSA)
6.125%, 02/01/00 1,025 1,076
St. Paul, Series A, Callable 02/01/01
@ 100 (GO)
5.250%, 02/01/03 1,500 1,519
Stearns County, Housing &
Redevelopment Authority,
Callable 02/01/99 @ 102 (RB)
(MLO) (AMBAC)
6.750%, 02/01/04 1,665 1,763
Stillwater, Independent School District,
Callable 02/01/02 @ 100 (GO) (FGIC)
5.200%, 02/01/03 2,500 2,544
Tax-Exempt Mortgage Trust,
Series C (RB) (MLO (NN)
0.000%, 09/01/10 (A) 235 232
Vadnais Heights, Single Family
Mortgages (RB)
5.500%, 11/01/04 1,005 1,008
6.000%, 11/01/09 580 582
5.600%, 05/01/10 1,000 1,001
Description Par (000) Shares Value (000)
Washington County, Housing &
Redevelopment Authority, Jail Facility (RB)
6.400%, 02/01/00 1,000 1,060
Washington County, Housing &
Redevelopment Authority, Jail Facility,
Callable 02/01/03 @ 100 (RB) (MBIA)
5.400%, 02/01/08 1,580 1,568
Washington County, Housing &
Redevelopment Authority, Pre-refunded
@ 100 (RB)
6.800%, 02/01/02 (B) 1,500 1,646
Washington County, Raymie Johnson
Apartments, Series C (GO) (FGIC)
6.000%, 01/01/10 1,340 1,375
Wayzata, Independent School District,
Series B, Callable 02/01/03 @ 100
(GO) (FGIC)
4.900%, 02/01/07 2,000 1,920
Willmar, Independent School District,
Callable 02/01/02 @ 100 (GO) (AMBAC)
6.150%, 02/01/09 1,000 1,034
TOTAL MUNICIPAL BONDS
(Cost $90,271) 92,219
MONEY MARKET FUND--2.0%
Federated Minnesota Municipal
Cash Trust 1,947,899 1,948
TOTAL MONEY MARKET FUND
(Cost $1,948) 1,948
TOTAL INVESTMENTS--96.8%
(Cost $92,219) 94,167
3,143
OTHER ASSETS AND LIABILITIES, NET--3.2%
NET ASSETS:
Portfolio Shares--Institutional Class
($.0001 par value--2 billion authorized)
based on 9,427,149 outstanding shares $ 91,155
Portfolio Shares--Retail Class A
($.0001 par value--2 billion authorized)
based on 395,308 outstanding shares 3,879
Undistributed net investment income 4
Accumulated net realized gain on investments 324
Net unrealized appreciation of investments 1,948
TOTAL NET ASSETS--100.0% $ 97,310
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER
SHARE--INSTITUTIONAL CLASS $ 9.91
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE--RETAIL
CLASS A $ 9.91
MAXIMUM SALES CHARGE OF 3.00% (1) 0.31
OFFERING PRICE PER SHARE--RETAIL CLASS A $10.22
(1) The offer price is calculated by dividing the net asset value by 1
minus the maximum sales charge of 3.00
(A) Variable Rate Security--the rate reported on the Statement of Net
Assets is the rate in effect as of September 30, 1996.
(B) Pre-refunded Security--the pre-refunded date is shown as the maturity
date on the Statement of Net Assets.
(C) Mandatory Put Security--the mandatory put date is shown as the maturity
date on the Statement of Net Assets.
AMBAC--American Municipal Bond Assurance Company
AMT--Alternative Minimum Tax
CGIC--Capital Guaranty Insurance Company
FGIC--Federal Guaranty Insurance Corporation
FHA--Federal Housing Authority
FNMA--Federal National Mortgage Association
FSA--Financial Security Assurance
GNMA--Government National Mortgage Association
GO--General Obligation
MBIA--Municipal Bond Insurance Association
MLO--Municipal Lease Obligation
NN--Northwestern National
RB--Revenue Bond
VA--Veterans Administration
The accompanying notes are an integral part of the financial statements.
COLORADO INTERMEDIATE TAX FREE FUND
Description Par (000) Value (000)
MUNICIPAL BONDS--95.4%
COLORADO--95.4%
Adams County, School District #12,
Callable 12/15/03 @ 100 (GO) (FGIC)
6.200%, 12/15/08 $ 455 $ 479
Adams County, School District #12,
Pre-refunded @ 101 (GO)
7.650%, 12/15/96 (B) 900 916
Adams County, School District #50 (GO)
5.125%, 12/01/00 1,000 1,015
Arapahoe County, Cherry Creek School District
#5, Callable 12/15/00 @ 101 (GO)
6.800%, 12/15/01 1,000 1,093
Arapahoe County, Cherry Creek School District
#5, Callable 12/15/03 @ 100 (GO) (STAID)
5.250%, 12/15/04 500 506
Arapahoe County, Littleton School District #6,
Callable 12/01/06 @ 102, (GO) (STAID)
5.250%, 12/01/10 1,000 973
Aurora, Callable 12/01/04 @ 101
(COP) (MLO)
6.000%, 12/01/06 1,000 1,024
Aurora, Community College Project (RB) (MLO)
(CLE)
5.750%, 10/15/04 500 518
Boulder County, Sales & Use Tax
(RB) (FGIC)
5.750%, 12/15/05 1,000 1,028
Boulder Valley, School District #R-2, Callable
10/15/01 @ 100 (GO)
5.900%, 10/15/02 500 523
5.900%, 10/15/03 500 521
Boulder Valley, School District, Callable
12/01/04 @ 101 (GO) (STAID)
5.950%, 12/01/07 1,000 1,045
Boulder, Callable 10/01/01 @ 101 (GO)
5.700%, 10/01/04 250 259
Boulder, Larimer, & Weld Counties,
Vrain Valley School District,
Pre-refunded @ 101 (GO)
7.200%, 12/15/99 (B) 500 544
Boulder, Urban Renewal Tax Allocation (RB)
(MBIA)
5.700%, 03/01/00 1,250 1,284
Brighton, Callable 12/01/01 @ 101
(GO) (MBIA)
6.350%, 12/01/05 500 533
Broomfield, Callable 05/01/97 @ 101 (GO)
7.600%, 11/01/03 1,000 1,012
Centennial Water & Sanitation, Series A,
Callable 06/01/97 @ 101.5 (GO) (SWB)
4.750%, 12/01/97 500 503
Colorado Springs, Memorial Hospital,
Callable 12/15/05 @ 102 (RB) (MBIA)
6.000%, 12/15/15 500 513
Colorado Springs, Series A, Callable 11/15/01
@ 102 (RB)
6.625%, 11/15/04 1,000 1,086
6.500%, 11/15/15 995 1,077
Colorado State Board of Agriculture, Fort
Lewis College (RB) (FGIC)
6.000%, 10/01/02 250 263
Colorado State Housing Finance Authority,
Multi-Family Housing,
Series A (RB) (FHA)
5.125%, 10/01/03 635 624
Colorado State Housing Finance Authority,
Single Family Mortgages, Series B-1 (RB) (AMT)
5.875%, 06/01/11 890 900
Colorado State Student Obligations Board
Authority (RB)
4.800%, 12/01/99 500 504
Colorado State Student Obligations Board
Authority, Series C (RB)
4.400%, 03/01/00 500 496
Colorado State Water Resource & Power
Development Authority, Callable 09/01/02 @ 101
(RB) (FSA)
5.900%, 09/01/03 250 265
Colorado State Water Resource & Power
Development Authority, Clean Water Project,
Callable 09/01/02 @ 102 (RB)
5.800%, 09/01/06 1,000 1,051
Denver, City & County Airport, Series C,
Mandatory Put @ 100 (RB) (ST)
6.000%, 04/01/97 (C) 1,650 1,662
Denver, City & County Airport, Series D (RB)
(MORG) (AMT)
3.950%, 11/15/25 (A) 500 500
Denver, City & County School District #1,
Series A (GO)
5.200%, 12/01/03 250 253
Douglas & Elbert Counties, School District #1,
Callable 12/15/04 @ 101 (GO) (MBIA) (STAID)
6.400%, 12/15/11 1,000 1,067
Eagle, Garfield, & Routt Counties, School
District #50 J, Callable 12/01/04 @ 102
(GO) (FGIC) (STAID)
6.125%, 12/01/09 1,290 1,351
El Paso County, School District #2
Harrison (GO)
7.050%, 12/01/04 1,000 1,114
El Paso County, School District #20
(COP) (MLO)
6.100%, 12/01/99 250 259
El Paso County, School District #20,
Series A (GO)
6.100%, 12/15/05 500 530
Fort Collins, Callable 12/01/02 @
101 (GO)
5.550%, 12/01/03 500 519
6.400%, 12/01/09 575 604
Fort Collins, Wastewater, Callable 12/01/05 @
100 (RB) (FGIC)
5.250%, 12/01/07 1,000 1,004
Garfield, Pitkin, & Eagle Counties, School
District #1 (GO) (MBIA)
6.000%, 12/15/04 1,000 1,070
Jefferson County, Industrial Development
Authority (RB)
6.625%, 09/01/01 250 269
Jefferson County, Metropolitan Y.M.C.A.,
Callable 08/01/04 @ 100 (RB)
7.500%, 08/01/08 1,000 1,015
Jefferson County, School District #R 1,
Callable 12/15/02 @ 101 (GO)
(AMBAC) (STAID)
5.900%, 12/15/04 1,000 1,056
La Plata County, School District #9 & Durango,
Callable 11/01/02 @ 101 (GO) (FGIC) (STAID)
6.200%, 11/01/05 1,000 1,079
Larimer County, School District #R-1 Poudre,
Callable 12/15/02 @ 101 (GO) (MBIA)
6.150%, 12/15/16 1,000 1,031
Larimer County, School District #R-1
Poudre (GO)
5.400%, 12/15/04 750 750
Larimer, Weld, & Boulder Counties, School
District #R-2 Thompson, Callable 12/15/04 @
100 (GO)
5.900%, 12/15/06 1,000 1,035
Louisville, Callable 06/01/98 @ 101
(GO) (FGIC)
7.200%, 12/01/04 465 487
Moffat County, Pollution Control (RB)
(AMBAC)
5.500%, 11/01/05 1,000 1,026
Northglenn, Callable 11/01/96 @ 101
(GO) (MBIA)
7.125%, 11/01/06 500 506
Platte River Power Authority, Series BB (RB)
5.500%, 06/01/02 500 516
Pueblo (GO) (MBIA)
6.000%, 05/01/00 500 524
Pueblo County, Single Family Mortgages,
Callable 11/01/04 @ 102 (RB)
(FNMA/GNMA)
6.400%, 11/01/13 1,100 1,107
Pueblo, Urban Renewal Authority,
Callable 12/01/03 @ 101 (RB) (AMBAC)
5.800%, 12/01/09 840 848
Regional Transit District (RB)
5.750%, 11/01/01 1,500 1,569
South Suburban Park & Recreation District (GO)
(MBIA)
0.000%, 12/15/01 1,000 774
Stonegate Village Metropolitan District,
Callable 12/01/02 @ 100 (GO)
6.300%, 12/01/04 500 533
Summit County, School District #R-1,
Pre-refunded @ 100 (GO) (FGIC)
6.450%, 12/01/04 (B) 1,250 1,380
Thornton (GO) (FGIC)
5.600%, 12/01/02 1,000 1,046
Thornton, Callable 12/01/02 @ 101
(GO) (FGIC)
5.650%, 12/01/03 1,000 1,050
University of Colorado, Callable 06/01/99 @
101 (RB)
6.800%, 06/01/02 300 317
Westminster, Water & Wastewater Utility
Enterprise, Callable 10/01/04 @ 100 (RB)
(AMBAC)
5.800%, 12/01/05 1,000 1,035
TOTAL MUNICIPAL BONDS
(Cost $47,938) 49,441
MONEY MARKET FUND--2.8%
Federated Tax Free Money Market 1,436,451 1,436
TOTAL MONEY MARKET FUND
(Cost $1,436) 1,436
TOTAL INVESTMENTS--98.2%
(Cost $49,374) 50,877
OTHER ASSETS AND LIABILITIES, NET--1.8% 911
Description Value (000)
NET ASSETS:
Portfolio Shares--Institutional Class
($.0001 par value--2 billion authorized)
based on 4,696,789 outstanding shares $47,160
Portfolio Shares--Retail Class A
($.0001 par value--2 billion authorized)
based on 274,680 outstanding shares 2,845
Undistributed net investment income 4
Accumulated net realized gain on investments 276
Net unrealized appreciation of investments 1,503
TOTAL NET ASSETS--100.0% $51,788
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER
SHARE--INSTITUTIONAL CLASS $ 10.42
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE--RETAIL
CLASS A $10.42
Maximum sales charge of 3.00% (1) 0.32
OFFERING PRICE PER SHARE--RETAIL CLASS A $10.74
(1) The offer price is calculated by dividing the net asset value by 1
minus the maximum sales charge of 3.00%
(A) Variable Rate Security--the rate reported on the Statement of Net
Assets is the rate in effect as of September 30, 1996.
(B) Pre-refunded Security--the pre-refunded date is shown as the maturity
date on the Statement of Net Assets.
(C) Mandatory Put Security--the mandatory put date is shown as the maturity
date on the Statement of Net Assets.
AMBAC--American Municipal Bond Assurance Company
AMT--Alternative Minimum Tax
CLE--Connie Lee
COP--Certificates of Participation
FGIC--Federal Guaranty Insurance Corporation
FHA--Federal Housing Authority
FNMA--Federal National Mortgage Association
FSA--Financial Security Assurance
GNMA--Government National Mortgage Association
GO--General Obligation
MBIA--Municipal Bond Insurance Association
MLO--Municipal Lease Obligation
MORG--Morgan Company
RB--Revenue Bond
ST--Sumitomo Trust
STAID--State Aid Withholding
SWB--Swiss Bank
The accompanying notes are an integral part of the financial statements.
STATEMENTS OF NET ASSETS/SCHEDULE OF INVESTMENTS ---- SEPTEMBER 30, 1996
ASSET ALLOCATION FUND
Description Shares Value (000)
COMMON STOCKS--47.3%
AEROSPACE & DEFENSE--0.4%
Lockheed Martin 1,052 $ 95
Raytheon 1,300 72
Rockwell International 1,200 68
235
AGRICULTURE--0.0%
Pioneer Hi-Bred International 400 24
AIR TRANSPORTATION--0.2%
AMR* 500 40
Delta Air Lines 500 36
Federal Express* 300 24
Southwest Airlines 800 18
U.S. Air Group* 300 5
123
AIRCRAFT--0.8%
Allied Signal 1,500 99
Boeing 1,800 170
General Dynamics 300 21
McDonnell Douglas 1,200 63
Northrop 300 24
Textron 400 34
United Technologies 600 72
483
APPAREL/TEXTILES--0.1%
Fruit of the Loom* 400 12
Liz Claiborne 400 15
Reebok 400 14
Russell 200 6
Springs Industries, Cl A 100 4
V.F 300 18
69
AUTOMOTIVE--1.0%
Chrysler 4,000 115
Dana 500 15
Eaton 400 24
Echlin 300 9
Fleetwood Enterprises 200 6
Ford Motor 6,300 197
General Motors 4,100 197
Navistar International* 400 3
Paccar 200 11
TRW 300 28
605
BANKS--3.8%
Banc One 2,437 100
Bank of Boston 900 52
Bank of New York 2,100 62
BankAmerica 2,000 164
Bankers Trust New York 400 31
Barnett Banks 1,000 34
Boatmen's Bancshares 800 45
Chase Manhattan 2,348 188
Citicorp 2,600 236
Comerica 600 31
CoreStates Financial 1,200 52
Fifth Third Bancorp 500 29
First Bank System 700 47
First Chicago NBD 1,705 77
First Union 1,475 98
Fleet Financial Group 1,413 63
Golden West Financial 300 18
Great Western Financial 700 19
H.F. Ahmanson 600 17
J.P. Morgan 1,000 89
KeyCorp 1,200 53
MBNA 1,150 40
Mellon Bank 700 41
National City 1,200 51
NationsBank 1,600 139
Norwest 2,000 82
PNC Bank 1,800 60
Republic New York 300 21
Suntrust Banks 1,200 49
U.S. Bancorp 900 36
Wachovia 900 45
Wells Fargo 533 139
2,208
BEAUTY PRODUCTS--0.9%
Alberto-Culver, Cl B 100 4
Avon Products 700 35
Colgate-Palmolive 800 70
Ecolab 300 10
International Flavors & Fragrances 600 26
Proctor & Gamble 3,700 361
506
BROADCASTING, NEWSPAPERS &
ADVERTISING--0.3%
Comcast, Cl A 1,300 20
Interpublic Group 400 19
Tele-Communications, Cl A* 3,500 52
Viacom, Cl B* 1,960 70
161
BUILDING & CONSTRUCTION--0.1%
Centex 100 3
Fluor 400 25
Foster Wheeler 200 9
Halliburton 600 31
Kaufman & Broad Home 200 3
Owens Corning 300 11
Pulte 100 3
85
CHEMICALS--1.3%
Air Products & Chemicals 600 35
Dow Chemical 1,300 104
E.I. du Pont de Nemours 3,000 265
Eastman Chemical 400 23
FMC* 200 14
Great Lakes Chemical 300 17
Hercules 600 33
Monsanto 3,200 117
Morton International 800 32
Nalco Chemical 400 15
Praxair 800 34
Rohm & Haas 300 20
Union Carbide 700 32
W.R. Grace* 500 26
767
COMMUNICATIONS EQUIPMENT--0.6%
Andrew* 300 15
DSC Communications* 600 15
General Instrument* 700 17
General Signal 300 13
Harris 200 13
ITT Industries 600 14
Motorola 3,200 165
Northern Telecom 1,400 81
Scientific-Atlanta 400 6
Tellabs* 500 35
374
COMPUTERS & SERVICES--1.8%
Amdahl* 600 6
Apple Computer* 700 16
Bay Networks* 1,000 27
Cabletron Systems* 400 27
Ceridian* 400 20
Compaq Computer* 1,400 90
Data General* 200 3
Dell Computer* 500 39
Digital Equipment* 800 29
EMC* 1,200 27
Hewlett Packard 5,500 268
IBM 2,900 361
Intergraph* 200 2
Pitney Bowes 800 42
Seagate Technology* 600 34
Silicon Graphics* 922 20
Tandem Computers* 600 6
Tandy 300 12
Unisys* 900 6
1,035
CONSUMER PRODUCTS--0.0%
Stride Rite 300 3
CONTAINERS & PACKAGING--0.1%
Ball 200 5
Crown, Cork & Seal 700 32
Newell 800 24
61
DRUGS--4.1%
Abbott Laboratories 4,200 207
Allergan 300 11
Alza, Cl A* 400 11
American Home Products 3,400 217
Amgen* 1,400 88
Bristol-Myers Squibb 2,700 260
Eli Lilly 2,958 191
Johnson & Johnson 7,200 369
Mallinckrodt Group 400 17
Merck 6,600 464
Pfizer 3,400 269
Pharmacia & Upjohn 2,750 113
Schering Plough 2,000 123
Warner Lambert 1,400 92
2,432
ELECTRICAL SERVICES--1.5%
American Electric Power 1,000 41
Baltimore Gas & Electric 800 21
Carolina Power & Light 800 28
Central & South West 1,100 29
Cinergy 800 25
Consolidated Edison New York 1,300 36
Dominion Resources of Virginia 900 34
DTE Energy 800 22
Duke Power 1,100 51
Edison International 2,400 43
Entergy 1,200 32
FPL Group 1,000 43
GPU 600 18
Houston Industries 1,400 31
Niagara Mohawk Power 800 6
Northern States Power 400 19
Ohio Edison 800 15
Pacific Gas & Electric 2,200 48
Pacificorp 1,600 33
PECO Energy 1,200 28
PP&L Resources 800 17
Public Service Enterprise Group 1,300 35
Raychem 200 15
Southern 3,600 81
Texas Utilities 1,200 48
Thomas & Betts 200 8
Unicom 1,100 28
Union Electric 500 18
853
ENTERTAINMENT--0.5%
Bally Entertainment* 300 9
Harrah's Entertainment* 550 10
King World Productions* 200 7
Walt Disney 3,700 234
260
ENVIRONMENTAL SERVICES--0.2%
Browning Ferris Industries 1,100 27
Laidlaw, Cl B 1,700 19
WMX Technologies 2,700 89
135
FINANCIAL SERVICES--1.3%
American Express 2,600 120
Beneficial 300 17
Dean Witter Discover 846 47
FHLMC 1,000 98
FNMA 5,900 206
Green Tree Financial 700 27
H & R Block 500 15
Household International 500 41
ITT Hartford Group 600 35
Merrill Lynch 900 59
Morgan Stanley Group 800 40
Salomon 600 27
Transamerica 328 23
755
FOOD, BEVERAGE & TOBACCO--4.1%
Adolph Coors, Cl B 200 4
American Brands 900 38
Anheuser Busch 2,600 98
Archer Daniels Midland 3,141 60
Brown Forman, Cl B 400 16
Campbell Soup 1,300 101
Coca Cola 13,400 682
ConAgra 1,300 64
CPC International 800 60
General Mills 800 48
H.J. Heinz 1,950 66
Hershey Foods 800 40
Kellogg 1,100 76
PepsiCo 8,400 237
Philip Morris 4,500 404
Quaker Oats 700 26
Ralston-Ralston Purina Group 600 41
Sara Lee 2,600 93
Seagram 2,000 75
Unilever 800 126
UST 1,100 33
Whitman 600 14
William Wrigley Jr 600 36
2,438
GAS/NATURAL GAS--0.4%
Coastal 600 25
Columbia Gas Systems 300 17
Consolidated Natural Gas 500 27
Eastern Enterprises 100 4
Enron 1,300 53
Nicor 300 10
Noram Energy 700 10
Oneok 100 3
Pacific Enterprises 400 12
Panenergy 800 28
Peoples Energy 200 7
Sonat 500 22
Williams 600 31
249
GLASS PRODUCTS--0.1%
Corning 1,200 47
HOME APPLIANCES--0.2%
Maytag 600 12
National Service Industries 300 10
PPG Industries 1,000 54
Sherwin Williams 400 19
Snap-On Tools 300 10
Stanley Works 500 14
Whirlpool 400 20
139
HOTELS & LODGING--0.2%
HFS* 700 47
Hilton Hotels 1,200 34
Marriot International 700 39
120
HOUSEHOLD FURNITURE &
FIXTURES--0.1%
Masco 900 27
HOUSEHOLD PRODUCTS--0.3%
Clorox 300 29
Gillette 2,400 173
202
INSURANCE--1.9%
Aetna 779 55
Alexander & Alexander Services 200 3
Allstate 2,417 119
American General 1,100 42
American International Group 2,525 254
Aon 600 33
Chubb 900 41
Cigna 400 48
General Re 400 57
Jefferson-Pilot 350 18
Lincoln National 500 22
Loew's 600 46
Marsh & McLennan 400 39
MGIC Investment 400 27
Providian 500 21
Safeco 700 24
St. Paul 400 22
Torchmark 400 18
Travelers 2,602 128
U.S. Life 200 6
United Healthcare 1,000 42
Unum 400 26
USF&G 600 11
1,102
JEWELRY, PRECIOUS METALS--0.0%
Jostens 200 4
LEISURE--0.0%
Brunswick 500 12
LUMBER & WOOD PRODUCTS--0.0%
Louisiana-Pacific 600 14
MACHINERY--2.4%
Applied Materials* 1,000 28
Baker Hughes 800 24
Black & Decker 500 21
Briggs & Stratton 200 9
Case 400 19
Caterpillar 1,000 75
Cincinnati Milacron 200 4
Crane 200 9
Cummins Engine 200 8
Deere 1,400 59
Dover 600 29
Dresser Industries 1,000 30
Emerson Electric 1,200 108
General Electric 8,900 810
Giddings & Lewis 200 2
Harnischfeger Industries 200 8
Ingersoll Rand 600 28
McDermott International 300 7
Nacco Industries, Cl A 100 5
Outboard Marine 100 2
Pall 600 17
Parker Hannifin 350 15
Tenneco 900 45
Timken 200 8
Trinova 200 6
Tyco International 800 34
1,410
MEASURING DEVICES--0.2%
Honeywell 700 44
Johnson Controls 200 15
Millipore 200 8
Perkin Elmer 200 12
Tektronix 200 8
87
MEDICAL PRODUCTS & SERVICES--0.9%
Bausch & Lomb 300 11
Baxter International 1,500 70
Becton Dickinson 600 27
Beverly Enterprises* 500 5
Biomet* 600 10
Boston Scientific* 900 52
C.R. Bard 300 9
Columbia/HCA Healthcare 2,437 139
Community Psychiatric Centers* 200 2
Fresenius Medical Care, ADR* 524 12
Humana* 900 18
Manor Care 300 12
Medtronic 1,200 77
St. Jude Medical 450 18
Tenet Healthcare* 1,100 24
United States Surgical 300 13
499
METALS & MINING--0.1%
Cyprus AMAX Minerals 450 10
Freeport-McMoran Copper & Gold, Cl B 1,000 31
41
MISCELLANEOUS BUSINESS
SERVICES--2.2%
3Com* 900 54
Autodesk 200 5
Automatic Data Processing 1,500 65
Cisco Systems* 3,500 217
Computer Associates International 1,950 117
Computer Sciences* 500 38
CUC International* 1,350 54
First Data 1,200 98
Microsoft* 3,200 422
Novell* 2,000 22
Oracle* 3,500 149
Safety-Kleen 300 5
Shared Medical Systems 100 6
Sun Microsystems* 1,000 62
1,314
MISCELLANEOUS CONSUMER SERVICES--0.1%
Service International 1,200 36
MULTI-INDUSTRY--0.3%
ITT* 600 26
Minnesota Mining & Manufacturing 2,300 161
187
OIL--DOMESTIC--0.5%
Ashland Oil 300 12
Atlantic Richfield 900 115
Kerr-McGee 300 18
Louisiana Land & Exploration 200 11
Pennzoil 200 11
Phillips Petroleum 1,400 60
Sun 391 9
Unocal 1,300 47
USX-Marathon Group 1,500 32
315
OIL--INTERNATIONAL--3.3%
Amerada Hess 500 26
Amoco 2,700 190
Chevron 3,500 219
Exxon 6,700 558
Mobil 2,100 243
Royal Dutch Petroleum 2,900 453
Schlumberger 1,300 110
Texaco 1,400 129
1,928
PAPER & PAPER PRODUCTS--0.8%
Avery Dennison 300 17
Bemis 300 10
Boise Cascade 300 10
Champion International 500 23
Georgia Pacific 500 40
International Paper 1,600 68
James River 400 11
Kimberly Clark 1,502 132
Mead 300 18
Potlatch 200 8
Stone Container 500 8
Temple Inland 300 16
Union Camp 400 20
Westvaco 500 15
Weyerhaeuser 1,100 51
Willamette Industries 300 20
467
PETROLEUM & FUEL PRODUCTS--0.2%
Burlington Resources 700 31
Enserch 400 8
Helmerich & Payne 100 4
Occidental Petroleum 1,700 40
Oryx Energy* 600 11
Rowan* 400 7
Santa Fe Energy Resources* 500 7
Western Atlas* 300 19
127
PHOTOGRAPHIC EQUIPMENT & SUPPLIES--0.4%
Eastman Kodak 1,800 141
Polaroid 200 9
Xerox 1,700 91
241
PRECIOUS METALS--0.2%
Barrick Gold 1,900 48
Battle Mountain Gold 1,300 10
Echo Bay Mines 700 6
Homestake Mining 800 12
Newmont Mining 473 22
Placer Dome Group 1,300 31
Santa Fe Pacific Gold 700 9
138
PRINTING & PUBLISHING--0.6%
American Greetings, Cl A 400 11
Deluxe 400 15
Dow Jones 500 18
Gannett 700 49
John H. Harland 200 6
Knight-Ridder 600 22
McGraw-Hill 500 21
Meredith 100 5
Moore 500 9
New York Times, Cl A 500 17
R.R. Donnelley & Sons 800 26
Time Warner 2,100 81
Times Mirror, Cl A 600 27
Tribune 300 23
330
PROFESSIONAL SERVICES--0.1%
Dun & Bradstreet 900 54
EG&G 300 5
59
RAILROADS--0.5%
Burlington Northern Santa Fe 779 66
Consolidated Rail 400 29
CSX 1,100 56
Norfolk Southern 700 64
Union Pacific 1,100 81
296
REPAIR SERVICES--0.0%
Ryder System 400 12
RETAIL--2.7%
Albertson's 1,300 55
American Stores 800 32
Charming Shoppes* 500 3
Circuit City Stores 500 18
Darden Restaurants 800 7
Dayton Hudson 1,200 40
Dillard Department Stores, Cl A 600 19
Federated Department Stores* 1,100 37
Gap 1,500 43
Giant Food, Cl A 300 10
Great Atlantic & Pacific Tea 200 5
Harcourt General 400 22
Hasbro 500 19
Home Depot 2,633 150
J.C. Penney 1,200 65
Kmart* 2,600 27
Kroger* 700 31
Limited 1,460 28
Longs Drug Stores 100 4
Lowe's 1,000 41
Luby's Cafeterias 100 2
Mattel 1,518 39
May Department Stores 1,300 63
McDonald's 3,800 180
Melville 600 26
Mercantile Stores 200 11
Nordstrom 400 15
Pep Boys-Manny, Moe & Jack 300 11
Price/Costco* 1,000 20
Rite Aid 400 14
Ryan's Family Steak Houses* 300 2
Sears Roebuck 2,100 94
Shoney's* 200 2
TJX 400 14
Toys "R" Us* 1,500 44
Wal-Mart Stores 12,300 324
Walgreen 1,300 48
Wendy's International 700 15
Winn Dixie Stores 800 28
Woolworth* 700 14
1,622
RUBBER & PLASTIC--0.4%
Armstrong World Industries 200 12
B.F. Goodrich 300 14
Cooper Tire & Rubber 400 9
Goodyear Tire & Rubber 800 37
Illinois Tool Works 600 43
Nike, Cl B 800 97
Rubbermaid 800 20
Tupperware 300 15
247
SEMI-CONDUCTORS/INSTRUMENTS--1.0%
Advanced Micro Devices* 700 10
AMP 1,200 46
Intel 4,400 420
LSI Logic* 700 16
Micron Technology 1,100 34
National Semiconductor* 700 14
Texas Instruments 1,000 55
595
SPECIALTY MACHINERY--0.1%
Cooper Industries 603 26
Westinghouse Electric 2,200 41
67
STEEL & STEEL WORKS--0.4%
Alcan Aluminium 1,200 36
Allegheny Teledyne* 977 22
Aluminum Company of America 900 53
Armco* 600 3
Asarco 200 5
Bethlehem Steel* 600 6
Engelhard 800 18
Inco 900 28
Inland Steel Industries 300 5
Nucor 500 25
Phelps Dodge 300 19
Reynolds Metals 300 15
USX-U.S. Steel Group 400 11
Worthington Industries 500 10
256
TELEPHONES & TELECOMMUNICATION--3.3%
Airtouch Communications* 2,700 75
Alltel 1,000 28
Ameritech 3,000 158
AT&T 8,600 449
Bell Atlantic 2,400 144
BellSouth 5,400 200
GTE 5,300 204
MCI Communications 3,700 95
NYNEX 2,400 104
Pacific Telesis Group 2,300 77
SBC Communications 3,300 159
Sprint 2,400 93
U.S. West 2,600 77
U.S. West Media Group* 2,600 44
Worldcom* 2,100 45
1,952
Description Shares/Par (000) Value (000)
TRUCKING--0.0%
Caliber System 200 3
Consolidated Freightways 200 5
Yellow* 100 1
9
WHOLESALE--0.3%
Alco Standard 700 35
Fleming 200 3
Genuine Parts 600 26
Sigma Aldrich 300 17
SUPERVALU 400 11
Sysco 1,000 34
W.W. Grainger 300 21
147
TOTAL COMMON STOCKS
(Cost $22,521) 27,910
U.S. TREASURY OBLIGATIONS--22.7%
U.S. Treasury Notes
6.500%, 05/15/05 6,838 6,753
6.500%, 08/15/05 2,715 2,679
5.875%, 11/15/05 4,151 3,920
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $13,442) 13,352
RELATED PARTY MONEY MARKET
FUNDS--9.4%
First American Government
Obligations Fund (A) 2,738,342 2,738
First American Prime
Obligations Fund (A) 2,786,622 2,787
TOTAL RELATED PARTY MONEY MARKET FUNDS
(Cost $5,525) 5,525
REPURCHASE AGREEMENT--19.9%
Merrill Lynch 5.627%, dated 09/30/96,
matures 10/01/96, repurchase price
$11,742,480 (collateralized by U.S.
Treasury STRIPS, total par value
$53,300,000, 08/15/17: total market
value $11,975,977) $ 11,741 11,741
TOTAL REPURCHASE AGREEMENT
(Cost $11,741) 11,741
TOTAL INVESTMENTS--99.3%
(Cost $53,229) 58,528
OTHER ASSETS AND LIABILITIES, NET--0.7% 394
Description Value (000)
NET ASSETS:
Portfolio shares--Institutional Class ($.0001
par value--2 billion authorized) based on
4,438,357 outstanding shares $45,390
Portfolio shares--Retail Class A ($.0001
par value--2 billion authorized) based on
149,106 outstanding shares 1,645
Portfolio shares--Retail Class B ($.0001
par value--2 billion authorized) based on
187,059 outstanding shares 2,173
Undistributed net investment income 113
Accumulated net realized gain on investments 4,302
Net unrealized appreciation of investments 5,299
TOTAL NET ASSETS--100.0% $58,922
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--INSTITUTIONAL CLASS $ 12.34
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE--RETAIL CLASS A $ 12.35
Maximum sales charge of 4.50% (1) 0.58
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 12.93
NET ASSET VALUE AND OFFERING PRICE
PER SHARE--RETAIL CLASS B (2) $ 12.29
* Non-income producing security
(1) The offer price is calculated by dividing the net asset value by 1
minus the maximum sales charge of 4.50%
(2) Retail Class B has a contingent deferred sales charge. For a
description of possible redemption charge, see the notes to the
financial statements.
(A) These money market funds are advised by First Bank National Association
who also serve as Adviser for this Fund. See also the Notes to the
Financial Statements.
CI--Class
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
STRIPS--Separately Trading of Registered Interest and Principal of
Securities
The accompanying notes are an integral part of the financial statements.
BALANCED FUND
Description Shares Value (000)
COMMON STOCKS--54.0%
AUTOMOTIVE--0.8%
General Motors 58,700 2,818
BANKS--3.5%
Bank of Boston 65,800 3,808
Chase Manhattan 64,100 5,136
Citicorp 42,800 3,879
12,823
CHEMICALS--3.9%
Hercules 49,800 2,727
Monsanto 125,400 4,577
Olin 40,300 3,385
W.R. Grace* 75,400 3,921
14,610
COMMUNICATIONS EQUIPMENT--1.5%
Nokia, ADR 121,300 5,367
COMPUTERS & SERVICES--2.8%
Compaq Computer* 72,000 4,617
IBM 46,000 5,727
10,344
CONTAINERS & PACKAGING--1.6%
Ball 122,400 2,999
Bemis 93,400 3,164
6,163
DRUGS--2.1%
American Home Products 78,200 4,985
Bristol-Myers Squibb 28,100 2,708
7,693
FINANCIAL SERVICES--1.2%
Household International 54,400 4,474
FOOD, BEVERAGE & TOBACCO--3.7%
ConAgra 97,600 4,807
Dole Food 87,700 3,683
Sara Lee 150,300 5,373
13,863
INSURANCE--4.5%
Aetna 49,300 3,469
AMBAC 50,200 2,799
Cigna 39,300 4,711
General Re 15,200 2,155
TIG Holdings 113,900 3,417
16,551
LEISURE--1.4%
Brunswick 214,600 5,150
MACHINERY--2.3%
Case Equipment 84,000 4,095
General Electric 47,600 4,332
8,427
MEDICAL PRODUCTS & SERVICES--0.5%
Fresenius Medical Care, ADR* 79,101 1,839
MULTI-INDUSTRY--2.8%
Corning 125,900 4,910
Minnesota Mining & Manufacturing 28,900 2,019
National Service Industries 61,400 2,149
U.S. Industries* 48,000 1,260
10,338
OIL--DOMESTIC--1.0%
Unocal 101,300 3,647
OIL--INTERNATIONAL--4.4%
Amerada Hess 53,000 2,802
Exxon 34,000 2,831
Mobil 31,500 3,646
Royal Dutch Petroleum 24,100 3,763
Texaco 34,000 3,128
16,170
PAPER & PAPER PRODUCTS--0.7%
James River 95,500 2,638
PHOTOGRAPHIC EQUIPMENT & SUPPLIES--1.4%
Eastman Kodak 65,400 5,134
PRINTING & PUBLISHING--1.4%
Knight-Ridder 142,200 5,261
RAILROADS--2.7%
Burlington Northern Santa Fe 38,900 3,282
Canadian Pacific 151,700 3,508
Consolidated Rail 42,600 3,083
9,873
REAL ESTATE INVESTMENT TRUSTS--2.3%
Duke Realty Investments 54,300 1,772
Equity Residential Properties Trust 77,000 2,753
Simon Debartolo Group 165,200 4,233
8,758
RETAIL--0.9%
Sears Roebuck 71,300 3,191
RUBBER & PLASTIC--1.3%
Tupperware 99,500 4,876
SEMI-CONDUCTORS/INSTRUMENTS--2.2%
SGS-Thomson Microelectronics* 92,000 4,358
Texas Instruments 67,800 3,737
8,095
SPECIALTY CONSTRUCTION--0.7%
Masco 92,200 2,766
SPECIALTY MACHINERY--0.7%
York International 54,400 2,632
TELEPHONES & TELECOMMUNICATION--0.7%
Century Telephone Enterprises 73,500 2,527
WHOLESALE--1.0%
W.W. Grainger 50,300 3,534
TOTAL COMMON STOCKS
(Cost $159,938) 199,562
U.S. TREASURY OBLIGATIONS--30.2%
U.S. Treasury Bond
7.125%, 02/15/23 27,510 27,702
U.S. Treasury Notes
4.750%, 02/15/97 6,915 6,897
6.000%, 05/31/98 20,290 20,269
6.750%, 05/31/99 18,300 18,514
6.250%, 08/31/00 13,495 13,415
5.625%, 11/30/00 6,200 6,018
6.250%, 02/15/03 10,390 10,217
6.500%, 08/15/05 8,570 8,456
U.S. Treasury STRIPS
0.000%, 02/15/99 265 229
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $112,396) 111,717
CORPORATE OBLIGATIONS--4.0%
Bear Stearns
9.125%, 04/15/98 770 801
8.750%, 03/15/04 1,150 1,239
Cigna
7.400%, 01/15/03 2,825 2,836
General Foods
6.000%, 06/15/01 860 826
GMAC
7.650%, 01/16/98 2,375 2,414
Santander Financial Issuances
7.250%, 05/30/06 5,075 5,024
Torchmark
7.875%, 05/15/23 1,700 1,651
TOTAL CORPORATE OBLIGATIONS
(Cost $14,900) 14,791
OTHER MORTGAGE-BACKED OBLIGATIONS--1.4%
Drexel Burnham Lambert Trust
CMO Trust S 2
9.000%, 08/01/18 356 363
General Electric Capital Mortgage
1994-11 A1
6.500%, 03/25/24 1,421 1,413
General Electric Capital Mortgage
1994-17 A6
7.000%, 05/25/24 2,675 2,579
Residential Funding 1992-36 A2
5.700%, 11/25/07 405 400
RTC 1991-M6 (A)
7.000%, 06/25/21 460 453
TOTAL OTHER MORTGAGE-BACKED OBLIGATIONS
(Cost $5,033) 5,208
U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED OBLIGATIONS--1.4%
FHLMC
6.000%, 11/15/08 2,700 2,511
FNMA
5.450%, 10/25/18 2,700 2,603
TOTAL U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED OBLIGATIONS
(Cost $5,305) 5,114
ASSET-BACKED SECURITY--0.3%
Household Finance 1993-2 A3
4.650%, 12/20/08 988 969
TOTAL ASSET-BACKED SECURITY
(Cost $986) 969
RELATED PARTY MONEY MARKET FUNDS--6.7%
First American Government
Obligations Fund (B) 8,476,163 8,476
First American Prime
Obligations Fund (B) 16,194,084 16,194
TOTAL RELATED PARTY MONEY MARKET FUNDS
(Cost $24,670) 24,670
TOTAL INVESTMENTS--98.0%
(Cost $323,228) 362,031
* Non-income producing security
(A) Security sold within terms of a private placement memorandum, exempt
from registration under Section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or other
"accredited investors". These securities have been determined to be
liquid under the guidelines established by the Board of Directors.
(B) These money market funds are advised by First Bank National Association
who also serve as Adviser for this Fund. See also the Notes to the
Financial Statements.
ADR--American Depository Receipt
AMBAC--American Municipal Bond Assurance Company
CMO--Collateralized Mortgage Obligation
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
GMAC--General Motors Acceptance Corporation
RTC--Resolution Trust Corporation
STRIPS--Separately Trading of Registered Interest and Principal of
Securities
The accompanying notes are an integral part of the financial statements.
REAL ESTATE SECURITIES FUND
Description Shares Value (000)
COMMON STOCKS--97.2%
REAL ESTATE INVESTMENT TRUSTS--97.2%
HEALTHCARE FACILITIES--9.7%
Health & Retirement Property Trust 30,000 $ 532
Health Care Property Investors 8,000 261
National Health Investors 13,900 464
Nationwide Health Properties 24,300 535
1,792
HOTELS--14.6%
Colonial Properties Trust 22,900 601
Felcor Suite Hotels 17,500 564
Hospitality Properties Trust 19,600 524
Patriot American Hospitality 16,700 562
RFS Hotel Investors 27,000 425
2,676
OFFICE/INDUSTRIAL--28.9%
Cali Realty 24,800 673
Duke Realty Investments 18,100 591
Liberty Property Trust 27,000 587
Security Capital Industrial Trust 23,833 435
Shurgard Storage Centers 20,400 528
Sovran Self Storage 16,900 444
Spieker Properties 18,100 532
Storage Trust 26,300 572
Storage USA 15,200 505
Weeks 15,900 453
5,320
RESIDENTIAL--25.4%
Bay Apartment Communities 18,000 513
Chateau Properties 13,000 322
Equity Residential Properties Trust 16,400 586
Evans Withycombe Residential 26,300 575
Post Properties 15,200 557
ROC Communities 21,900 534
Summit Properties 28,000 553
Sun Communities 19,800 564
Wellsford Real Estate 20,900 460
4,664
RETAIL--18.6%
CBL & Associates Properties 22,800 524
Developers Diversified Realty 6,100 196
Excel Realty Trust 16,900 365
Federal Realty Investment Trust 16,800 395
JDN Realty 8,200 201
Macerich 25,300 566
Mid-America Realty Investments 38,900 345
Simon Debartolo Group 32,100 823
3,415
TOTAL COMMON STOCKS
(Cost $16,166) 17,867
RELATED PARTY MONEY MARKET FUND--2.2%
First American Prime
Obligations Fund (A) 403,972 404
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $404) 404
TOTAL INVESTMENTS--99.4%
(Cost $16,570) 18,271
OTHER ASSETS AND LIABILITIES, NET--0.6% 113
NET ASSETS:
Portfolio shares--Institutional Class
($.0001 par value--2 billion authorized)
based on 1,552,482 outstanding shares 16,188
Portfolio shares--Retail Class A
($.0001 par value--2 billion authorized)
based on 19,607 outstanding shares 207
Portfolio shares--Retail Class B
($.0001 par value--2 billion authorized)
based on 22,956 outstanding shares 239
Distributions in excess of net investment
income (13)
Accumulated net realized gain on investments 62
Net unrealized appreciation of investments 1,701
TOTAL NET ASSETS--100.0% $18,384
NET ASSET VALUE, OFFERING PRICE, AND
REDEMPTION PRICE PER SHARE--INSTITUTIONAL CLASS $ 11.53
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE--RETAIL CLASS A $ 11.52
Maximum sales charge of 4.50% (1) 0.54
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 12.06
NET ASSET VALUE AND OFFERING PRICE
PER SHARE--RETAIL CLASS B (2) $ 11.46
(1) The offer price is calculated by dividing the net asset value by 1
minus the maximum sales charge of 4.50%
(2) Retail Class B has a contingent deferred sales charge. For a
description of possible redemption charge, see the notes to the
financial statements.
(A) This money market fund is advised by First Bank National Association
who also serve as Adviser for the Fund. See also the Notes to the
Financial Statements.
The accompanying notes are an integral part of the financial statements.
EQUITY INCOME FUND
Description Shares Value (000)
COMMON STOCKS--70.7%
Banks--5.2%
Bank of New York 48,000 $1,410
National City 54,000 2,275
3,685
CHEMICALS--2.1%
E.I. du Pont de Nemours 16,900 1,491
DRUGS--6.3%
Abbott Laboratories 37,200 1,832
Johnson & Johnson 33,000 1,691
Pfizer 12,000 950
4,473
ELECTRICAL SERVICES--5.8%
Cinergy 44,500 1,374
FPL Group 30,100 1,302
Texas Utilities 35,600 1,411
4,087
FINANCIAL SERVICES--1.1%
American Express 16,500 763
FOOD, BEVERAGE & TOBACCO--5.7%
PepsiCo 34,000 961
Philip Morris 20,400 1,831
Sara Lee 36,000 1,287
4,079
GAS/NATURAL GAS--0.6%
Enron 11,000 448
HOUSEHOLD PRODUCTS--2.2%
Newell 52,700 1,581
INSURANCE--2.2%
IPC Holdings 41,000 810
Providian 17,600 757
1,567
MACHINERY--6.8%
General Electric 40,100 3,649
Tenneco 23,300 1,168
4,817
MINING--2.1%
Great Northern Iron Ore Properties 30,100 1,482
MISCELLANEOUS BUSINESS SERVICES--1.5%
Electronic Data Systems 16,893 1,037
Description Shares/Par (000) Value (000)
OIL--INTERNATIONAL--9.1%
Amoco 34,500 2,432
Exxon 19,100 1,590
Mobil 21,300 2,465
6,487
RAILROADS--1.9%
Union Pacific 18,000 1,319
REAL ESTATE INVESTMENT TRUSTS--12.6%
Crescent Real Estate Equity 29,600 1,217
Healthcare Realty Trust 61,100 1,443
Manufactured Home Communities 60,700 1,168
National Golf Properties 73,700 2,054
Simon Debartolo Group 62,000 1,589
Weeks 50,700 1,445
8,916
RETAIL--4.1%
Intimate Brands 43,500 794
J.C. Penney 39,300 2,127
2,921
TELEPHONES & TELECOMMUNICATION--1.4%
AT&T 19,100 998
TOTAL COMMON STOCKS
(Cost $39,425) 50,151
PREFERRED CONVERTIBLE STOCKS--7.4%
AUTOMOTIVE--2.8%
Ford Motor, Series A, $4.20 19,500 1,987
BROADCASTING, NEWSPAPERS & ADVERTISING--1.4%
TCI Pacific Communications 10,700 1,003
FINANCIAL SERVICES--1.5%
Advanta, Cl B 25,000 1,044
INSURANCE--1.7%
Aetna 10,000 729
FHP International, Cl A 15,000 467
1,196
TOTAL PREFERRED CONVERTIBLE STOCKS
(Cost $5,020) 5,230
CONVERTIBLE BONDS--10.5%
Conner Peripherals, 41.6660 Shares
6.500%, 03/01/02 1,775 2,032
General Instrument, 42.1052 Shares
5.000%, 06/15/00 600 674
Hometown Buffet, 73.2600 Shares
7.000%, 12/01/02 1,900 2,142
Integrated Health Services, 31.1284 Shares
6.000%, 01/01/03 700 690
Price, 44.3754 Shares
6.750%, 03/01/01 1,075 1,140
Description Par (000)/Shares Value (000)
Tenet Healthcare, 25.9403 Shares
6.000%, 12/01/05 750 802
TOTAL CONVERTIBLE BONDS
(Cost $6,957) 7,480
RELATED PARTY MONEY MARKET FUNDS--9.3%
First American Government Obligations
Fund (A) 3,189,272 3,189
First American Prime Obligations
Fund (A) 3,393,408 3,393
TOTAL RELATED PARTY MONEY MARKET FUNDS
(Cost $6,582) 6,582
REPURCHASE AGREEMENT--1.7%
Merrill Lynch 5.627%, dated 09/30/96,
matures 10/01/96, repurchase price
$1,226,006 (collateralized by U.S.
Treasury STRIPS, total par value
$5,565,000, 08/15/17: total market value
$1,250,400) $ 1,226 1,226
TOTAL REPURCHASE AGREEMENT
(Cost $1,226) 1,226
TOTAL INVESTMENTS--99.6%
(Cost $59,210) 70,669
OTHER ASSETS AND LIABILITIES, NET--0.4% 272
NET ASSETS:
Portfolio shares--Institutional Class ($.0001 par value--2
billion authorized) based on 5,102,222 outstanding shares 51,919
Portfolio shares--Retail Class A ($.0001 par value--2
billion authorized) based on 204,120 outstanding shares 2,204
Portfolio shares--Retail Class B ($.0001 par value--2
billion authorized) based on 299,068 outstanding shares 3,426
Undistributed net investment income 103
Accumulated net realized gain on investments 1,830
Net unrealized appreciation of investments 11,459
TOTAL NET ASSETS--100.0% $70,941
NET ASSET VALUE, OFFERING PRICE, AND
REDEMPTION PRICE PER SHARE--INSTITUTIONAL CLASS $ 12.66
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE--RETAIL CLASS A $ 12.65
Maximum sales charge of 4.50% (1) 0.60
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 13.25
NET ASSET VALUE AND OFFERING
PRICE PER SHARE--RETAIL CLASS B (2) $ 12.61
(1) The offer price is calculated by dividing the net asset value by 1
minus the maximum sales charge of 4.50%
(2) Retail Class B has a contingent deferred sales charge. For a
description of possible redemption charge, see the notes to the
financial statements.
(A) These money market funds are advised by First Bank National Association
who also serve as Adviser for this Fund. See also the Notes to the
Financial Statements.
Cl--Class
STRIPS--Separately Trading of Registered Interest and Principal of
Securities
The accompanying notes are an integral part of the financial statements.
EQUITY INDEX FUND
Description Shares Value (000)
COMMON STOCKS--98.4%
AEROSPACE & DEFENSE--0.8%
Lockheed Martin 13,727 $1,237
Raytheon 16,200 901
Rockwell International 15,000 846
2,984
AGRICULTURE--0.1%
Pioneer Hi-Bred International 5,700 345
AIR TRANSPORTATION--0.4%
AMR* 6,300 502
Delta Air Lines 5,400 389
Federal Express* 3,900 309
Southwest Airlines 10,000 229
U.S. Air Group* 4,400 73
1,502
AIRCRAFT--1.8%
Allied Signal 19,400 1,278
Boeing 23,900 2,259
General Dynamics 4,200 289
McDonnell Douglas 14,800 777
Northrop 4,000 321
Textron 5,600 476
United Technologies 8,400 1,009
6,409
APPAREL/TEXTILES--0.2%
Fruit of the Loom* 5,300 164
Liz Claiborne 5,000 186
Reebok International 3,700 129
Russell 2,600 84
Springs Industries, Cl A 1,300 58
V.F 4,400 265
886
AUTOMOTIVE--2.2%
Chrysler 50,000 1,431
Dana 7,000 212
Eaton 5,300 320
Echlin 4,100 129
Fleetwood Enterprises 2,300 71
Ford Motor 81,200 2,538
General Motors 51,900 2,491
Navistar International* 5,200 44
Paccar 2,595 142
TRW 4,300 400
7,778
BANKS--7.7%
Banc One 29,813 1,222
Bank of Boston 10,300 596
Bank of New York 26,500 778
BankAmerica 24,700 2,028
Bankers Trust New York 5,500 432
Barnett Banks 13,300 449
Boatmen's Bancshares 10,800 603
Chase Manhattan 29,996 2,403
Citicorp 33,000 2,991
Comerica 7,900 407
CoreStates Financial Group 15,300 662
Fifth Third Bancorp 7,300 424
First Bank System 9,700 649
First Chicago NBD 21,764 985
First Union 18,800 1,255
Fleet Financial Group 18,000 801
Golden West Financial 3,900 228
Great Western Financial 9,400 249
H.F. Ahmanson 7,400 207
J.P. Morgan 12,800 1,138
KeyCorp 15,800 695
MBNA 15,300 532
Mellon Bank 8,950 530
National City 15,200 640
NationsBank 20,000 1,738
Norwest 25,500 1,042
PNC Bank 23,400 781
Republic New York 3,700 256
Suntrust Banks 15,300 627
U.S. Bancorp 10,600 419
Wachovia 11,500 569
Wells Fargo 6,400 1,664
28,000
BEAUTY PRODUCTS--1.8%
Alberto-Culver, Cl B 1,800 78
Avon Products 9,200 457
Colgate-Palmolive 10,100 877
Ecolab 4,400 149
International Flavors & Fragrances 7,600 332
Procter & Gamble 47,100 4,592
6,485
BROADCASTING, NEWSPAPERS & ADVERTISING--0.6%
Comcast, Cl A 16,000 246
Interpublic Group 5,600 265
Tele-Communications, Cl A* 44,800 669
Viacom, Cl B* 24,445 868
2,048
BUILDING & CONSTRUCTION--0.3%
Centex 1,900 62
Fluor 5,800 357
Foster Wheeler 2,700 118
Halliburton 7,900 408
Kaufman & Broad Home 2,600 34
Owens Corning 3,400 125
Pulte 1,600 41
1,145
CHEMICALS--2.8%
Air Products & Chemicals 7,700 449
B.F. Goodrich 3,700 167
Dow Chemical 16,900 1,356
E.I. du Pont de Nemours 38,500 3,398
Eastman Chemical 5,275 308
FMC* 2,500 170
Great Lakes Chemical 4,300 245
Hercules 7,200 394
Monsanto 40,300 1,471
Morton International 9,700 386
Nalco Chemical 4,600 167
Praxair 10,700 460
Rohm & Haas 4,400 288
Union Carbide 8,800 402
W.R. Grace* 6,800 354
10,015
COMMUNICATIONS EQUIPMENT--1.3%
Andrew* 4,000 200
DSC Communications* 8,000 200
General Instrument* 9,400 233
Harris 2,600 169
ITT Industries 8,100 195
Motorola 40,700 2,101
Northern Telecom 17,800 1,028
Scientific-Atlanta 5,300 84
Tellabs* 6,100 431
4,641
COMPUTERS & SERVICES--3.6%
Amdahl* 8,300 78
Apple Computer* 8,600 191
Bay Networks* 12,900 352
Cabletron Systems* 5,200 356
Ceridian* 4,700 235
Compaq Computer* 18,500 1,186
Data General* 2,600 36
Dell Computer* 6,200 482
Digital Equipment* 10,700 383
EMC* 15,900 360
Hewlett Packard 70,200 3,422
IBM 36,200 4,507
Intergraph* 3,100 34
Pitney Bowes 10,300 542
Seagate Technology* 7,300 408
Silicon Graphics* 11,808 261
Tandem Computers* 8,100 87
Tandy 3,980 161
Unisys* 11,900 73
13,154
CONSUMER PRODUCTS--0.0%
Stride Rite 3,300 30
CONTAINERS & PACKAGING--0.2%
Ball 2,000 49
Crown Cork & Seal 8,800 406
Newell 10,900 327
782
DRUGS--8.6%
Abbott Laboratories 53,600 2,640
Allergan 4,500 172
Alza, Cl A* 5,800 156
American Home Products 43,700 2,786
Amgen* 18,200 1,149
Bristol-Myers Squibb 34,400 3,315
Eli Lilly 37,588 2,424
Johnson & Johnson 91,500 4,689
Mallinckrodt Group 5,100 212
Merck 83,500 5,876
Pfizer 44,100 3,489
Pharmacia & Upjohn 34,925 1,441
Schering Plough 25,400 1,562
Warner Lambert 18,600 1,228
31,139
ELECTRICAL SERVICES--3.0%
American Electric Power 12,900 524
Baltimore Gas & Electric 10,100 264
Carolina Power & Light 10,400 359
Central & South West 14,400 374
Cinergy 10,873 336
Consolidated Edison New York 16,100 447
Dominion Resources of Virginia 12,200 461
DTE Energy 10,000 280
Duke Power 13,900 648
Edison International 30,100 538
Entergy 15,700 424
FPL Group 12,600 545
GPU 8,300 255
Houston Industries 18,100 400
Niagara Mohawk Power* 9,900 79
Northern States Power 4,700 219
Ohio Edison 10,500 203
Pacific Gas & Electric 28,500 620
Pacificorp 20,200 417
PECO Energy 15,300 363
PP&L Resources 11,100 243
Public Service Enterprise Group 16,800 449
Southern 46,200 1,045
Texas Utilities 15,400 610
Unicom 14,800 372
Union Electric Power 7,000 258
10,733
ENTERTAINMENT--0.9%
Bally Entertainment* 3,500 99
Harrah's Entertainment* 7,100 132
King World Productions* 2,500 92
Walt Disney 46,600 2,953
3,276
ENVIRONMENTAL SERVICES--0.5%
Browning Ferris Industries 14,600 365
Laidlaw, Cl B 21,500 237
WMX Technologies 33,700 1,108
1,710
FINANCIAL SERVICES--2.7%
American Express 32,600 1,508
Beneficial 3,700 213
Dean Witter Discover 11,286 621
FHLMC 12,300 1,204
FNMA 74,900 2,612
Green Tree Financial 9,400 369
Household International 6,700 551
ITT Hartford Group 8,100 478
ITT* 8,100 353
Merrill Lynch 11,600 761
Morgan Stanley Group 10,400 517
Salomon Brothers 7,200 329
Transamerica 4,523 316
9,832
FOOD, BEVERAGE & TOBACCO--8.6%
Adolph Coors, Cl B 2,500 55
American Brands 11,700 494
Anheuser Busch 34,000 1,279
Archer Daniels Midland 37,511 722
Brown Forman, Cl B 4,600 180
Campbell Soup 17,100 1,334
Coca Cola 171,100 8,705
ConAgra 16,700 822
CPC International 10,000 749
General Mills 10,900 658
H.J. Heinz 25,350 856
Hershey Foods 10,600 533
Kellogg 14,600 1,006
PepsiCo 107,500 3,037
Philip Morris 56,200 5,044
Quaker Oats 9,300 341
Ralston-Ralston Purina Group 7,300 500
Sara Lee 33,300 1,190
Seagram 25,700 961
Unilever 11,000 1,734
UST 12,900 382
Whitman 7,200 167
William Wrigley Jr 8,000 482
31,231
GAS/NATURAL GAS--0.9%
Coastal 7,300 301
Columbia Gas Systems 3,800 213
Consolidated Natural Gas 6,500 349
Eastern Enterprises 1,300 49
Enron 17,400 709
Enserch 4,700 98
Nicor 3,300 111
Noram Energy 9,400 140
Oneok 1,800 49
Pacific Enterprises 5,900 178
PanEnergy 10,400 361
Peoples Energy 2,300 78
Sonat 5,900 261
Williams 7,200 367
3,264
GLASS PRODUCTS--0.2%
Corning 15,800 616
HOME APPLIANCES--0.5%
Maytag 6,900 135
National Service Industries 3,200 112
PPG Industries 12,800 696
Raychem 3,100 232
Sherwin Williams 5,900 274
Snap-On Tools 4,050 130
Thomas & Betts 2,800 115
Whirlpool 5,100 258
1,952
HOTELS & LODGING--0.4%
HFS* 8,500 568
Hilton Hotels 13,600 386
Marriott International 8,800 485
1,439
HOUSEHOLD FURNITURE & FIXTURES--0.1%
Masco 11,000 330
HOUSEHOLD PRODUCTS--0.8%
Clorox 3,400 326
Gillette 30,600 2,207
Stanley Works 6,100 172
2,705
INSURANCE--3.9%
Aetna 10,390 731
Alexander & Alexander Services 3,100 52
Allstate 30,550 1,505
American General 14,100 532
American International Group 32,225 3,247
Aon 7,400 401
Chubb 12,000 552
Cigna 5,200 623
General Re 5,400 765
Jefferson-Pilot 4,875 252
Lincoln National 7,200 316
Lowe's 7,800 604
Marsh & McLennan 5,000 486
MGIC Investment 3,900 263
Providian 6,400 275
Safeco 8,700 304
St. Paul 5,800 322
Torchmark 4,950 227
Travelers 32,987 1,620
United Healthcare 12,600 524
Unum 5,100 327
USF&G 8,100 150
USLife 2,300 69
14,147
JEWELRY, PRECIOUS METALS--0.0%
Jostens 2,600 54
LEISURE--0.0%
Brunswick 6,800 163
LUMBER & WOOD PRODUCTS--0.0%
Louisiana Pacific 7,500 171
MACHINERY--5.0%
Applied Materials* 12,300 340
Baker Hughes 9,900 301
Black & Decker 6,000 249
Briggs & Stratton 1,900 84
Case Equipment 5,000 244
Caterpillar 13,300 1,002
Cincinnati Milacron 2,600 49
Crane 2,000 89
Cummins Engine 2,600 102
Deere 17,700 743
Dover 7,800 372
Dresser Industries 12,300 366
Emerson Electric 15,400 1,388
General Electric 113,300 10,310
General Signal 3,300 145
Giddings & Lewis 2,300 27
Harnischfeger Industries 3,100 117
Ingersoll Rand 7,500 356
McDermott International 3,800 83
Nacco Industries, Cl A 600 29
Outboard Marine 1,300 20
Pall 7,900 223
Parker Hannifin 5,150 216
Tenneco 11,700 586
Timken 2,100 82
Trinova 1,900 60
Tyco International 10,500 453
18,036
MEASURING DEVICES--0.3%
Honeywell 8,700 549
Johnson Controls 2,700 202
Millipore 2,900 115
Perkin Elmer 3,000 174
Tektronix 2,200 90
1,130
MEDICAL PRODUCTS & SERVICES--1.8%
Bausch & Lomb 3,900 143
Baxter International 18,700 874
Becton Dickinson 8,400 372
Beverly Enterprises* 6,800 74
Biomet* 8,000 131
Boston Scientific* 12,200 701
C.R. Bard 3,800 118
Columbia/HCA Healthcare 30,737 1,748
Community Psychiatric* 2,900 27
Fresenius Medical Care, ADR* 7,133 166
Humana* 11,200 227
Manor Care 4,300 165
Medtronic 16,500 1,058
St. Jude Medical 5,550 224
Tenet Healthcare* 14,900 332
United States Surgical 4,300 183
6,543
METALS & MINING--0.2%
Cyprus AMAX Minerals 6,450 139
Freeport-McMoran Copper & Gold, Cl B 13,400 419
558
MISCELLANEOUS BUSINESS SERVICES--4.6%
3Com* 11,600 697
Autodesk 3,000 78
Automatic Data Processing 19,900 868
Cisco Systems* 44,400 2,756
Computer Associates International 25,025 1,495
Computer Sciences* 5,200 400
CUC International* 16,950 676
First Data 15,400 1,257
Microsoft* 41,100 5,420
Novell* 24,100 265
Oracle Systems* 44,925 1,912
Safety Kleen 4,000 66
Shared Medical Systems 1,500 85
Sun Microsystems* 12,700 789
16,764
MISCELLANEOUS CONSUMER SERVICES--0.2%
H & R Block 7,100 211
Service International 16,200 490
701
OIL--DOMESTIC--1.1%
Ashland Oil 4,400 175
Atlantic Richfield 11,100 1,415
Kerr-McGee 3,300 201
Louisiana Land & Exploration 2,200 116
Pennzoil 3,100 164
Phillips Petroleum 18,100 774
Sun 5,074 117
Unocal 17,100 616
USX-Marathon Group 19,700 426
4,004
OIL--INTERNATIONAL--6.4%
Amerada Hess 6,400 338
Amoco 34,100 2,404
Chevron 44,800 2,806
Exxon 85,200 7,093
Mobil 27,000 3,125
Royal Dutch Petroleum 36,800 5,745
Texaco 18,200 1,674
23,185
PAPER & PAPER PRODUCTS--2.2%
Avery Dennison 3,500 194
Bemis 3,500 119
Boise Cascade 3,200 109
Champion International 6,600 303
Georgia Pacific 6,300 498
International Paper 20,600 875
James River 5,900 163
Kimberly Clark 19,350 1,705
Mead 3,500 205
Minnesota Mining & Manufacturing 28,800 2,012
Potlatch 1,900 74
Stone Container 6,800 106
Temple Inland 3,700 195
Union Camp 4,600 225
Westvaco 7,000 207
Weyerhaeuser 13,600 627
Willamette Industries 3,800 249
7,866
PETROLEUM & FUEL PRODUCTS--0.8%
Burlington Resources 8,600 382
Helmerich & Payne 1,600 70
Occidental Petroleum 22,200 519
Oryx Energy* 7,200 128
Rowan* 5,900 110
Santa Fe Energy Resources* 6,200 88
Schlumberger 16,800 1,420
Western Atlas* 3,700 230
2,947
PHOTOGRAPHIC EQUIPMENT & SUPPLIES--0.9%
Eastman Kodak 23,100 1,813
Polaroid 3,000 132
Xerox 22,300 1,196
3,141
PRECIOUS METALS--0.5%
Barrick Gold 24,500 616
Battle Mountain Gold 15,400 119
Echo Bay Mines 9,600 85
Homestake Mining 10,100 148
Newmont Mining 6,843 323
Placer Dome Group 16,500 390
Santa Fe Pacific Gold 9,040 113
1,794
PRINTING & PUBLISHING--1.2%
American Greetings, Cl A 5,200 149
Deluxe 5,700 215
Dow Jones 6,700 248
Gannett 9,700 683
John H. Harland 2,000 60
Knight-Ridder 6,500 240
McGraw-Hill 6,800 290
Meredith 1,800 89
Moore 6,900 127
New York Times, Cl A 6,700 226
R.R. Donnelley & Sons 10,500 339
Time Warner 26,900 1,039
Times Mirror, Cl A 7,100 316
Tribune 4,100 320
4,341
PROFESSIONAL SERVICES--0.2%
Dun & Bradstreet 11,700 698
EG&G 3,100 55
753
RAILROADS--1.1%
Burlington Northern Santa Fe 10,508 887
Conrail 5,600 405
CSX 14,500 732
Norfolk Southern 8,700 795
Union Pacific 16,700 1,223
4,042
REPAIR SERVICES--0.0%
Ryder System 5,600 166
RETAIL--5.7%
Albertson's 17,300 729
American Stores 9,900 396
Charming Shoppes* 7,100 43
Circuit City Stores 6,700 242
Darden Restaurants 10,800 93
Dayton Hudson 14,900 492
Dillard Department Stores, Cl A 7,800 252
Federated Department Stores* 14,300 479
Gap 19,700 569
Giant Food, Cl A 4,100 139
Great Atlantic & Pacific Tea 2,500 65
Harcourt General 5,000 276
Hasbro 5,900 219
Home Depot 32,933 1,873
J.C. Penney 15,500 839
Kmart* 33,400 342
Kroger* 8,600 385
Limited 18,592 356
Longs Drug Stores 1,300 57
Lowe's 11,800 482
Luby's Cafeterias 1,600 38
Mattel 18,781 486
May Department Stores 17,200 836
McDonald's 48,000 2,274
Melville 7,300 322
Mercantile Stores 2,400 130
Nordstrom 5,600 213
Pep Boys-Manny, Moe & Jack 4,300 153
Price/Costco* 13,500 277
Rite Aid 5,800 210
Ryan's Family Steak Houses* 3,500 27
Sears Roebuck 26,900 1,204
Shoney's* 3,300 30
TJX 5,000 179
Toys "R" Us* 18,800 548
Wal-Mart Stores 157,400 4,151
Walgreen 16,900 625
Wendy's International 8,900 191
Winn Dixie Stores 10,400 363
Woolworth* 9,200 190
20,775
RUBBER & PLASTIC--0.8%
Armstrong World Industries 2,400 150
Cooper Tire & Rubber 5,800 125
Goodyear Tire & Rubber 10,700 494
Illinois Tool Works 8,400 606
Nike, Cl B 9,900 1,203
Rubbermaid 10,300 252
Tupperware 4,300 211
3,041
SEMI-CONDUCTORS/INSTRUMENTS--2.1%
Advanced Micro Devices* 9,300 137
AMP 15,052 583
Intel 56,500 5,392
LSI Logic* 8,900 207
Micron Technology 14,300 436
National Semiconductor* 9,500 191
Texas Instruments 13,000 717
7,663
SPECIALTY MACHINERY--0.2%
Cooper Industries 7,428 321
Westinghouse Electric 28,900 538
859
STEEL & STEEL WORKS--0.9%
Alcan Aluminium 15,500 465
Allegheny Teledyne* 11,922 270
Aluminum Company of America 12,000 708
Armco* 7,300 33
Asarco 2,800 75
Bethlehem Steel* 7,600 76
Engelhard 9,912 228
Inco 11,600 357
Inland Steel Industries 3,200 57
Nucor 6,000 304
Phelps Dodge 4,400 282
Reynolds Metals 4,400 225
USX-U.S. Steel Group 5,800 165
Worthington Industries 6,250 125
3,370
TELEPHONES & TELECOMMUNICATION--6.8%
Airtouch Communications* 34,300 948
Alltel 13,000 362
Ameritech 37,700 1,984
AT&T 110,700 5,784
Bell Atlantic 30,100 1,802
BellSouth 68,200 2,523
GTE 66,400 2,556
MCI Communications 47,200 1,209
NYNEX 30,100 1,309
Pacific Telesis Group 29,400 989
SBC Communications 41,800 2,012
Sprint 29,600 1,151
U.S. West 32,800 976
U.S. West Media Group* 32,500 548
WorldCom* 26,700 571
24,724
TRUCKING--0.0%
Caliber System 2,600 42
Consolidated Freightways 2,900 71
Yellow* 1,900 25
138
WHOLESALE--0.5%
Alco Standard 9,000 449
Fleming 2,500 43
Genuine Parts 8,350 365
Sigma Aldrich 3,300 188
SUPERVALU 4,500 124
Sysco 12,500 420
W.W. Grainger 3,400 239
1,828
TOTAL COMMON STOCKS
(Cost $275,056) 357,335
RELATED PARTY MONEY MARKET FUND--0.1%
First American Prime
Obligations Fund (A) 222,477 222
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $222) 222
TOTAL INVESTMENTS--98.5%
(Cost $275,278) 357,557
OTHER ASSETS AND LIABILITIES, NET--1.5% 5,455
NET ASSETS:
Portfolio shares--Institutional Class ($.0001
par value--2 billion authorized) based on
22,523,322 outstanding shares 258,564
Portfolio shares--Retail Class A ($.0001
par value--2 billion authorized) based on
401,729 outstanding shares 5,252
Portfolio shares--Retail Class B ($.0001
par value--2 billion authorized) based on
534,890 outstanding shares 7,533
Undistributed net investment income 195
Accumulated net realized gain on investments 9,189
Net unrealized appreciation of investments 82,279
TOTAL NET ASSETS--100.0% $363,012
NET ASSET VALUE, OFFERING PRICE, AND
REDEMPTION PRICE PER SHARE--INSTITUTIONAL CLASS $15.47
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE--RETAIL CLASS A $15.49
Maximum sales charge of 4.50% (1) 0.73
OFFERING PRICE PER SHARE--RETAIL CLASS A $16.22
NET ASSET VALUE AND OFFERING PRICE
PER SHARE--RETAIL CLASS B (2) $15.43
* Non-income producing security
(1) The offer price is calculated by dividing the net asset value by 1
minus the maximum sales charge of 4.50%
(2) Retail Class B has a contingent deferred sales charge. For a
description of possible redemption charge, see the notes to the
financial statements.
(A) This money market fund is advised by First Bank National Association
who also serve as Adviser for this Fund. See also the Notes to the
Financial Statements.
ADR--American Depository Receipt
Cl--Class
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
The accompanying notes are an integral part of the financial statements.
STOCK FUND
Description Shares Value (000)
COMMON STOCKS--90.0%
AUTOMOTIVE--1.3%
General Motors 136,600 $ 6,557
BANKS--5.8%
Bank of Boston 154,660 8,951
Chase Manhattan 149,900 12,011
Citicorp 99,800 9,044
30,006
CHEMICALS--6.7%
Hercules 119,300 6,532
Monsanto 291,300 10,632
Olin 92,800 7,795
W.R. Grace* 183,500 9,542
34,501
COMMUNICATIONS EQUIPMENT--2.4%
Nokia, ADR 275,900 12,209
COMPUTERS & SERVICES--4.6%
Compaq Computer* 165,000 10,581
IBM 107,500 13,384
23,965
CONTAINERS & PACKAGING--2.8%
Ball 280,500 6,872
Bemis 220,000 7,453
14,325
DRUGS--3.5%
American Home Products 180,200 11,488
Bristol-Myers Squibb 67,100 6,467
17,955
FINANCIAL SERVICES--2.0%
Household International 125,800 10,347
FOOD, BEVERAGE & TOBACCO--6.3%
ConAgra 234,300 11,539
Dole Food 207,500 8,715
Sara Lee 347,400 12,420
32,674
INSURANCE--7.4%
Aetna 111,300 7,833
AMBAC 114,900 6,406
Cigna 91,700 10,993
General Re 35,900 5,089
TIG Holdings 270,600 8,118
38,439
LEISURE--2.2%
Brunswick 484,500 11,628
MACHINERY--4.9%
Case Equipment 199,600 9,731
General Electric 107,500 9,782
York International 125,900 6,090
25,603
MEDICAL PRODUCTS & SERVICES--0.9%
Fresenius Medical Care, ADR* 192,508 4,476
MULTI-INDUSTRY--4.6%
Corning 290,900 11,345
Minnesota Mining & Manufacturing 63,400 4,430
National Service Industries 139,800 4,893
U.S. Industries* 117,600 3,087
23,755
OIL--DOMESTIC--1.7%
Unocal 239,900 8,636
OIL--INTERNATIONAL--7.3%
Amerada Hess 121,900 6,445
Exxon 80,700 6,718
Mobil 73,200 8,473
Royal Dutch Petroleum 56,300 8,790
Texaco 80,500 7,406
37,832
PAPER & PAPER PRODUCTS--1.2%
James River 232,900 6,434
PHOTOGRAPHIC EQUIPMENT & SUPPLIES--2.3%
Eastman Kodak 153,700 12,065
PRINTING & PUBLISHING--2.5%
Knight-Ridder 343,400 12,706
RAILROADS--4.4%
Burlington Northern Santa Fe 87,700 7,400
Canadian Pacific 356,300 8,239
Consolidated Rail 99,100 7,172
22,811
REAL ESTATE INVESTMENT TRUSTS--4.0%
Duke Realty Investments 128,400 4,189
Equity Residential Properties Trust 192,200 6,871
Simon Debartolo Group 379,724 9,730
20,790
RETAIL--1.4%
Sears Roebuck 161,900 7,245
RUBBER & PLASTIC--2.2%
Tupperware 234,500 11,490
SEMI-CONDUCTORS/INSTRUMENTS--3.7%
SGS-Thomson Microelectronics* 215,400 10,205
Texas Instruments 158,100 8,715
18,920
SPECIALTY CONSTRUCTION--1.2%
Masco 211,400 6,342
TELEPHONES & TELECOMMUNICATION--1.1%
Century Telephone Enterprises 170,200 5,851
WHOLESALE--1.6%
W.W. Grainger 115,800 8,135
TOTAL COMMON STOCKS
(Cost $366,128) 465,697
RELATED PARTY MONEY MARKET FUNDS--9.4%
First American Government
Obligations Fund (A) 24,109,427 24,110
First American Prime
Obligations Fund (A) 24,579,175 24,579
TOTAL RELATED PARTY MONEY MARKET FUNDS
(Cost $48,689) 48,689
REPURCHASE AGREEMENT--1.9%
Merrill Lynch 5.627%, dated 09/30/96,
matures 10/01/96, repurchase price
$9,929,476 (collateralized by various
U.S. Treasury STRIPS, total par value
$46,864,000, 02/15/18-05/15/18: total
market value $11,127,269) $ 9,928 9,928
TOTAL REPURCHASE AGREEMENT
(Cost $9,928) 9,928
TOTAL INVESTMENTS--101.3%
(Cost $424,745) 524,314
OTHER ASSETS AND LIABILITIES, NET--(1.3%) (6,827)
NET ASSETS:
Portfolio shares--Institutional Class ($.0001
par value--2 billion authorized) based on
20,852,024 outstanding shares $348,596
Portfolio shares--Retail Class A ($.0001
par value--2 billion authorized) based on
1,016,687 outstanding shares 17,618
Portfolio shares--Retail Class B ($.0001
par value--2 billion authorized) based on
1,036,466 outstanding shares 20,342
Undistributed net investment income 1,113
Accumulated net realized gain on investments 30,249
Net unrealized appreciation of investments 99,569
TOTAL NET ASSETS--100.0% $517,487
NET ASSET VALUE, OFFERING PRICE, AND
REDEMPTION PRICE PER SHARE--INSTITUTIONAL CLASS $ 22.60
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE--RETAIL CLASS A $ 22.59
Maximum sales charge of 4.50% (1) 1.06
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 23.65
NET ASSET VALUE AND OFFERING PRICE
PER SHARE--RETAIL CLASS B (2) $ 22.50
* Non-income producing security
(1) The offer price is calculated by dividing the net asset value by 1
minus the maximum sales charge of 4.50%
(2) Retail Class B has a contingent deferred sales charge. For a
description of possible redemption charge, see the notes to the
financial statements.
(A) This money market fund is advised by First Bank National Association
who also serve as Adviser for this Fund. See also the Notes to the
Financial Statements.
ADR--American Depository Receipt
AMBAC--American Municipal Bond Assurance Company
Cl--Class
STRIPS--Separately Trading of Registered Interest and Principal of
Securities
The accompanying notes are an integral part of the financial statements.
DIVERSIFIED GROWTH FUND
Description Shares Value (000)
COMMON STOCKS--93.8%
AUTOMOTIVE--2.0%
Ford Motor 149,000 $ 4,656
BANKS--6.0%
Bank of New York 42,000 1,234
BankAmerica 25,000 2,053
Citicorp 52,000 4,713
Signet Banking 121,000 3,237
Washington Mutual 81,200 3,025
14,262
BROADCASTING, NEWSPAPERS &
ADVERTISING--2.7%
Cox Communications* 112,000 2,058
Tele-Communications, Cl A* 292,000 4,362
6,420
CHEMICALS--2.2%
E.I. du Pont de Nemours 58,000 5,119
COMMUNICATIONS EQUIPMENT--2.6%
General Instrument* 41,578 1,029
Nokia, ADR 114,000 5,045
6,074
COMPUTERS & SERVICES--5.8%
Cisco Systems* 182,000 11,295
Seagate Technology* 42,000 2,347
13,642
DRUGS--7.2%
Abbott Laboratories 113,000 5,565
Johnson & Johnson 121,000 6,201
Pfizer 68,000 5,381
17,147
ELECTRICAL SERVICES--1.7%
Texas Utilities 104,000 4,121
ENERGY & POWER--1.4%
Thermo Electron* 81,000 3,281
FINANCIAL SERVICES--4.3%
American Express 75,000 3,469
FNMA 195,000 6,801
10,270
FOOD, BEVERAGE & TOBACCO--4.1%
PepsiCo 110,000 3,108
Philip Morris 40,500 3,635
Sara Lee 80,000 2,860
9,603
GAS/NATURAL GAS--0.8%
Enron 48,000 1,956
GLASS PRODUCTS--1.8%
Corning 108,000 4,212
HOUSEHOLD PRODUCTS--1.0%
Newell 80,000 2,400
INSURANCE -- 1.0%
United Healthcare 58,000 2,414
MACHINERY--6.3%
Case Equipment 41,000 1,999
General Electric 100,000 9,100
Tenneco 76,000 3,809
14,908
MEASURING DEVICES--0.6%
MTS Systems 71,000 1,402
MEDICAL PRODUCTS & SERVICES--4.5%
Columbia/HCA Healthcare 94,000 5,346
Medtronic 83,000 5,322
10,668
MISCELLANEOUS BUSINESS SERVICES--8.9%
Electronic Data Systems 39,000 2,394
First Data 30,000 2,449
Informix* 76,000 2,118
Microsoft* 38,000 5,011
Oracle* 193,500 8,236
Synopsys* 23,000 1,061
21,269
OIL--INTERNATIONAL--6.2%
Amoco 57,000 4,018
Exxon 45,000 3,746
Mobil 51,000 5,903
Union Texas Petroleum 53,000 1,146
14,813
PAPER & PAPER PRODUCTS--1.2%
Weyerhaeuser 63,000 2,906
PRINTING & PUBLISHING--1.7%
News, ADR 191,000 3,987
RAILROADS--1.4%
Union Pacific 44,762 3,279
REAL ESTATE INVESTMENT TRUSTS--3.1%
National Golf Properties 72,000 2,007
Simon Debartolo Group 204,960 5,252
7,259
RETAIL--6.9%
Autozone* 125,000 3,625
Intimate Brands 217,000 3,960
McDonald's 137,000 6,490
Saks Holdings* 63,000 2,205
16,280
SEMI-CONDUCTORS/INSTRUMENTS--1.9%
Intel 48,000 4,581
SERVICES-PREPACKAGED SOFTWARE--0.5%
Peoplesoft* 14,000 1,165
SPECIALTY MACHINERY--2.1%
York International 104,000 5,031
TELEPHONES & TELECOMMUNICATION--3.4%
Airtouch Communications* 61,000 1,685
L.M. Ericsson Telephone, ADR 101,000 2,563
Vodafone, ADR 111,000 3,788
8,036
TRUCKING--0.5%
Fritz* 82,000 1,189
TOTAL COMMON STOCKS
(Cost $176,559) 222,350
CONVERTIBLE BOND--0.4%
General Instrument, 42.1052 shares
5.000%, 06/15/00 950 1,066
TOTAL CONVERTIBLE BOND
(Cost $1,175) 1,066
RELATED PARTY MONEY MARKET FUNDS--5.3%
First American Government
Obligations Fund (A) 1,792,939 1,793
First American Prime
Obligations Fund (A) 10,662,812 10,663
TOTAL RELATED PARTY MONEY MARKET FUNDS
(Cost $12,456) 12,456
TOTAL INVESTMENTS--99.5%
(Cost $190,190) 235,872
OTHER ASSETS AND LIABILITIES, NET--0.5% 1,121
NET ASSETS:
Portfolio shares--Institutional Class ($.0001
par value--2 billion authorized) based on
16,533,178 outstanding shares 178,747
Portfolio shares--Retail Class A ($.0001
par value--2 billion authorized) based on 390,121
outstanding shares 4,442
Portfolio shares--Retail Class B ($.0001
par value--2 billion authorized) based on 425,494
outstanding shares 5,164
Undistributed net investment income 187
Accumulated net realized gain on investments 2,771
Net unrealized appreciation of investments 45,682
TOTAL NET ASSETS--100.0% $236,993
NET ASSET VALUE, OFFERING PRICE, AND
REDEMPTION PRICE PER SHARE--INSTITUTIONAL CLASS $ 13.66
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE--RETAIL CLASS A $ 13.63
Maximum sales charge of 4.50% (1) 0.64
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 14.27
NET ASSET VALUE AND OFFERING PRICE
PER SHARE--RETAIL CLASS B (2) $ 13.57
* Non-income producing security
(1) The offer price is calculated by dividing the net asset value by 1
minus the maximum sales charge of 4.50%
(2) Retail Class B has a contingent deferred sales charge. For a
description of possible redemption charge, see the notes to the
financial statements.
(A) These money market funds are advised by First Bank National Association
who also serve as Adviser for this Fund. See also the Notes to the
Financial Statements.
ADR--American Depository Receipt
Cl--Class
FNMA--Federal National Mortgage Association
The accompanying notes are an integral part of the financial statements.
SPECIAL EQUITY FUND
Description Shares Value (000)
COMMON STOCKS--91.5%
BANKS--6.2%
First Chicago 214,900 $ 9,724
Great Western Financial 282,100 7,476
17,200
CHEMICALS--6.2%
Borden 454,400 4,090
H.B. Fuller 158,100 6,067
W.R.Grace* 134,900 7,015
17,172
COMMUNICATIONS EQUIPMENT--6.2%
General Instrument* 267,400 6,618
Nokia, ADR 239,200 10,585
17,203
COMPUTERS & SERVICES--4.0%
Read-Rite* 424,400 6,684
Western Digital* 115,500 4,634
11,318
ENTERTAINMENT--1.5%
Grand Casinos* 288,600 4,257
ENVIRONMENTAL SERVICES--2.2%
Browning Ferris Industries 242,900 6,073
FINANCIAL SERVICES--1.6%
RAC Financial Group* 100,300 4,576
FOOD, BEVERAGE & TOBACCO--12.6%
Canandaigua Wine, Cl A* 281,300 5,837
Dean Foods 148,100 4,184
Dole Food 119,900 5,036
International Multifoods 314,300 5,107
Ralcorp Holdings* 283,800 5,889
Sara Lee 257,200 9,195
35,248
INSURANCE--6.1%
Aetna 93,400 6,573
IPC Holdings 210,400 4,155
Value Health* 329,300 6,174
16,902
MACHINERY--0.7%
Kulicke & Soffa Industries* 163,800 1,863
MARINE TRANSPORTATION--1.0%
Stolt-Nielsen 169,800 2,653
MEDICAL PRODUCTS & SERVICES--3.1%
Fresenius Medical Care, ADR* 141,522 3,290
Integrated Health Services 210,600 5,318
8,608
METALS & MINING--1.4%
Potash of Saskatchewan 53,600 3,920
OIL--DOMESTIC--2.7%
USX-Marathon Group 205,800 4,450
Valero Energy 135,000 2,953
7,403
OIL--SERVICES--1.6%
Horsham 277,500 4,509
PAPER & PAPER PRODUCTS--2.6%
Fort Howard* 292,000 7,118
PRINTING & PUBLISHING--2.3%
American Greetings, Cl A 224,400 6,423
REAL ESTATE INVESTMENT TRUSTS--3.8%
Glimcher Realty Trust 222,100 4,359
Simon DeBartolo Group 247,600 6,345
10,704
RETAIL--13.0%
Best Buy* 287,900 6,550
Brinker International* 184,900 3,143
Darden Restaurants 613,000 5,287
Department 56* 347,500 8,644
Micro Warehouse* 210,600 5,423
Price/Costco* 212,100 4,348
Sunglass Hut International* 184,900 2,947
36,342
RUBBER & PLASTIC--1.7%
Premark International 247,500 4,672
SEMI-CONDUCTORS/INSTRUMENTS--7.1%
KLA Instruments* 251,700 5,663
LSI Logic* 278,100 6,466
Novellus Systems* 182,800 7,792
19,921
SPECIALTY MACHINERY--2.4%
American Standard* 192,400 6,590
STEEL & STEEL WORKS--1.2%
Century Aluminum 234,800 3,463
TRUCKING--0.3%
Caliber System 50,000 806
TOTAL COMMON STOCKS
(Cost $233,908) 254,944
RELATED PARTY MONEY MARKET FUNDS--5.2%
First American Government
Obligations Fund (A) 1,924,629 1,925
First American Prime
Obligations Fund (A) 12,686,906 12,687
TOTAL RELATED PARTY MONEY MARKET FUNDS
(Cost $14,612) 14,612
TOTAL INVESTMENTS--96.7%
(Cost $248,520) 269,556
OTHER ASSETS AND LIABILITIES, NET--3.3% 9,106
NET ASSETS:
Portfolio shares--Institutional Class ($.0001
par value--2 billion authorized) based on
12,132,670 outstanding shares 190,314
Portfolio shares--Retail Class A ($.0001
par value--2 billion authorized) based on 881,099
outstanding shares 14,351
Portfolio shares--Retail Class B ($.0001 par
value--2 billion authorized) based on
632,703 outstanding shares 11,118
Undistributed net investment income 148
Accumulated net realized gain on investments 41,695
Net unrealized appreciation of investments 21,036
TOTAL NET ASSETS--100.0% $278,662
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--INSTITUTIONAL CLASS $ 20.43
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE--RETAIL CLASS A $ 20.41
Maximum sales charge of 4.50% (1) 0.96
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 21.37
NET ASSET VALUE AND OFFERING PRICE
PER SHARE--RETAIL CLASS B (2) $ 20.31
* Non-income producing security
(1) The offer price is calculated by dividing the net asset value by 1
minus the maximum sales charge of 4.50
(2) Retail Class B has a contingent deferred sales charge. For a
description of possible redemption charge, see the notes to the
financial statements.
(A) These money market funds are advised by First Bank National Association
who also serve as Adviser for this Fund. See also the Notes to the
Financial Statements.
ADR--American Depository Receipt
Cl--Class
The accompanying notes are an integral part of the financial statements.
REGIONAL EQUITY FUND
Description Shares Value (000)
INVESTMENTS IN SECURITIES OF
NAFFILIATED ISSUERS--76.1%
COMMON STOCKS--72.8%
AUTOMOTIVE--5.0%
Deflecta-shield* 212,300 $ 1,592
Dura Automotive Systems* 130,100 2,423
Tower Automotive* 458,500 11,749
15,764
BANKS--5.6%
Community First Bankshares 333,600 7,840
TCF Financial 252,100 9,485
17,325
BATTERIES & BATTERY SYSTEMS--0.7%
Bolder Technologies* 144,600 2,079
BROADCASTING, NEWSPAPERS & ADVERTISING--1.0%
Lodgenet Entertainment* 254,700 3,120
CHEMICALS--2.3%
Petrolite 109,100 3,655
W.H. Brady 135,200 3,397
7,052
COMMUNICATIONS EQUIPMENT--5.5%
Ascend Communications* 54,116 3,578
Communications Systems 450,000 5,850
Digital Systems* 424,500 7,588
17,016
COMPUTERS & SERVICES--7.4%
Control Data Systems* 471,200 10,897
Digi International* 318,300 4,536
Premis* 107,800 593
Valmont Industries 202,800 6,921
22,947
DRUGS--2.9%
Lifecore Biomedical* 469,100 9,089
FOOD, BEVERAGE & TOBACCO--2.1%
International Multifoods 212,300 3,450
Michael Foods 309,000 3,206
6,656
INSURANCE--2.2%
Amerin* 178,000 4,005
MMI 98,000 2,952
6,957
MACHINERY--12.5%
Alliant Techsystems* 57,700 2,993
Applied Power 163,200 5,202
BMC Industries 155,500 4,451
Check Technology* 150,600 1,487
Donaldson 246,200 6,801
Idex 141,600 4,708
Pentair 219,100 5,806
SPX 255,000 7,618
39,066
MEDICAL PRODUCTS & SERVICES--4.0%
Angeion* 466,100 2,971
ATS Medical* 158,300 1,167
Dynamic Healthcare Techologies* 297,200 1,746
Empi* 251,900 3,527
Orphan Medical* 247,100 2,718
Urologix* 21,100 324
12,453
METALS & MINING--1.0%
Varlen 144,240 3,218
MISCELLANEOUS BUSINESS SERVICES--3.9%
National Computer Systems 462,500 9,481
Summit Medical Systems* 201,900 2,827
12,308
MISCELLANEOUS CONSUMER SERVICES--3.4%
Regis 402,700 10,470
MULTI-INDUSTRY--1.4%
U.S. Industries* 171,000 4,489
PRINTING & PUBLISHING--1.7%
IPI* 174,700 699
Merrill 216,500 4,655
5,354
RETAIL--7.5%
Buffets* 450,000 4,725
Department 56* 322,700 8,027
Fingerhut 523,600 6,938
Vicorp Restaurants* 254,700 3,693
23,383
WHOLESALE--2.7%
A.M. Castle 159,450 3,209
Ballantyne of Omaha* 225,000 3,094
Hawkins Chemical 294,200 2,280
8,583
TOTAL COMMON STOCKS
(Cost $181,415) 227,329
WARRANT--0.0%
ATS Medical* 158,300 79
TOTAL WARRANT
(Cost $59) 79
REPURCHASE AGREEMENT--2.8%
Merrill Lynch 5.627%, dated 09/30/96,
matures 10/01/96, repurchase price
$8,603,664 (collateralized by U.S.
Treasury STRIPS, total par value $40,520,000,
02/15/18: total market value $8,775,011) $8,602 8,602
TOTAL REPURCHASE AGREEMENT
(Cost $8,602) 8,602
CONVERTIBLE BOND--0.5%
Hector Communications
8.500%, 02/15/02 1,384 1,439
TOTAL CONVERTIBLE BOND
(Cost $1,384) 1,439
TOTAL INVESTMENTS IN SECURITIES OF
UNAFFILIATED ISSUERS
(Cost $187,535) $237,499
RELATED PARTY MONEY MARKET FUNDS--9.1%
First American Government
Obligations Fund (B) 14,336,578 14,337
First American Prime
Obligations Fund (B) 14,093,318 14,093
TOTAL RELATED PARTY
MONEY MARKET FUNDS
(Cost $28,430) 28,430
INVESTMENTS IN COMMON STOCK OF AFFILIATES--11.1%
Aequitron Medical* (A) 453,900 4,199
Aetrium* (A) 700,400 7,354
Alternate Postal Delivery* (A) 241,500 845
Appliance Recycling Centers
of America* (A) 265,400 597
Audio King* (A) 280,200 490
Marketlink* (A) 411,800 721
Norstan* (A) 547,600 9,446
Rehabilicare* (A) 424,500 1,274
Sport-Haley* (A) 278,700 3,484
TSI (A) 730,200 6,207
TOTAL INVESTMENTS IN COMMON
STOCK OF AFFILIATES
(Cost $27,421) $ 34,617
TOTAL INVESTMENTS--96.3%
(Cost $247,252) 300,496
OTHER ASSETS AND LIABILITIES, NET--3.7% 11,638
NET ASSETS:
Portfolio shares--Institutional Class ($.0001
par value--2 billion authorized) based on
14,596,599 outstanding shares $203,094
Portfolio shares--Retail Class A ($.0001
par value--2 billion authorized) based on
1,429,605 outstanding shares 19,649
Portfolio shares--Retail Class B ($.0001
par value--2 billion authorized) based on
1,583,535 outstanding shares 26,024
Undistributed net investment income 1,177
Accumulated net realized gain on investments 8,946
Net unrealized appreciation of investments 53,244
TOTAL NET ASSETS--100.0% $312,134
NET ASSET VALUE, OFFERING PRICE, AND
REDEMPTION PRICE PER SHARE--INSTITUTIONAL CLASS $ 17.75
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE--RETAIL CLASS A $ 17.71
Maximum sales charge of 4.50% (1) 0.83
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 18.54
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE--RETAIL CLASS B (2) $ 17.47
* Non-income producing security
(1) The offer price is calculated by dividing the net asset value by 1
minus the maximum sales charge of 4.50%
(2) Retail Class B has a contingent deferred sales charge. For a
description of possible redemption charge, see the notes to the
financial statements.
(A) Investments are representing five percent or more of the outstanding
voting securities of the issuer, and is or was an affiliate, as defined
in the Investment Company Act of 1940 at or during the annual period
ended September 30, 1996. The activity for these securities is listed
below.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SHARES SHARES REALIZED
DESCRIPTION AT 9/30/95 AT 9/30/96 DIFFERENCE DIVIDENDS GAINS (LOSSES)
Aequitron
Medical 360,000 453,900 93,900 $ -- $ 362,369
Aetrium 680,000 700,400 20,400 -- 587,088
Alternate
Postal
Delivery 241,900 241,500 (400) -- (75,250)
Appliance
Recycling
Centers 34,300 265,400 231,100 -- (205,759)
Audio King 265,000 280,200 15,200 -- (49,800)
Ballantyne of
Omaha -- 225,000+ 225,000 -- 50,000
Canterbury Park
Holdings 177,500 -- (177,500) -- (355,000)
Communications
Systems 440,000 450,000+ 10,000 137,607 (52,775)
Deflecta-Shield 250,000 212,300+ (37,700) -- (314,501)
Digital Systems -- 424,500+ 424,500 -- 399,812
Dynamic
Healthcare
Technologies 350,000 297,200+ (52,800) -- 211,200
Lifecore
Biomedical 350,000 469,100+ 119,100 -- 1,038,400
Marketlink 485,000 411,800 (73,200) -- (118,950)
Navarre 260,000 -- (260,000) -- 137,869
Norstan 240,000 547,600 307,600 -- 864,425
Orphan Medical 275,000 247,100+ (27,900) -- 257,913
Rehabilicare 471,000 424,500 (46,900) -- 64,638
Rimage 235,000 -- (235,000) -- (558,567)
Sport Haley -- 278,700 278,700 -- 121,588
TSI 430,000 730,200 300,200 64,500 778,800
5,545,100 6,659,400 1,114,400 201,567 3,143,500
</TABLE>
+ At September 30, 1996 these securities were not considered common stock
of affiliates
(B) These money market funds are advised by First Bank National Association
who also serve as Adviser for the Fund. See also the Notes to the
Financial Statements.
STRIPS--Separately Trading of Registered Interest and Principal of
Securities.
The accompanying notes are an integral part of the financial statements.
EMERGING GROWTH FUND
Description Shares Value (000)
COMMON STOCKS--90.5%
AEROSPACE & DEFENSE--2.1%
Remec* 30,000 $ 424
Tracor* 57,000 1,176
1,600
AUTOMOTIVE--2.3%
Deflecta-Shield* 73,000 548
Tower Automotive* 48,000 1,230
1,778
BANKS--0.1%
Bank United, Cl A* 1,800 45
BATTERIES & BATTERY SYSTEMS--1.0%
Bolder Technologies* 54,000 776
BICYCLES & BICYCLE PARTS--1.2%
Cannondale* 38,000 884
ROADCASTING, NEWSPAPERS & ADVERTISING--3.1%
Bell Cablemedia, ADR* 28,000 469
Getty Communications, ADR* 63,000 914
National Wireless Holdings* 30,000 480
Pricellular, Cl A* 36,250 521
2,384
CHEMICALS--1.9%
Applied Extrusion Technologies* 39,000 356
Cambrex 33,000 1,118
1,474
COMMUNICATIONS EQUIPMENT--7.4%
Affinity Technology* 8,500 101
Ascend Communications* 16,991 1,124
Checkpoint Systems* 54,000 1,431
Communications Systems 53,000 689
CTC Communications* 60,000 675
Harmonic Lite* 38,000 746
PictureTel* 24,000 846
5,612
COMPUTERS & SERVICES--3.6%
HMT Technology* 57,000 1,240
Imnet Systems* 32,000 624
Mackie Designs* 39,000 317
Mylex* 36,000 567
2,748
DRUGS--2.7%
Idexx Laboratories* 45,000 2,036
ENERGY & POWER--1.5%
Calenergy* 36,000 1,148
FINANCIAL SERVICES--7.1%
Advanta, Cl A 12,000 552
Advanta, Cl B 19,000 812
BISYS Group* 27,000 1,107
First USA 16,500 914
Fiserv* 28,000 1,071
Investors Financial Services 2,500 64
National Processing* 23,000 449
SPS Transaction Services* 26,000 413
5,382
FOOD, BEVERAGE & TOBACCO%--0.1%
Pyramid Breweries* 15,200 101
HOME APPLIANCES--1.1%
Molten Metal Technology* 25,000 800
HOUSEHOLD PRODUCTS--0.8%
Coleman* 42,000 619
INSURANCE--4.2%
Amerin* 27,000 607
Meadowbrook Insurance Group 9,000 252
United Payors & United Providers* 62,000 775
Vesta Insurance Group 40,500 1,554
3,188
MACHINERY--3.3%
Electric Fuel* 98,000 576
Shaw Group* 55,000 1,911
2,487
MEASURING DEVICES--1.0%
Quickturn Design Systems* 42,000 572
Thermo Sentron* 13,100 151
723
MEDICAL PRODUCTS & SERVICES--10.6%
American Medical Response* 15,000 540
ATS Medical* 82,000 605
Conceptus* 36,200 498
Healthsource* 40,500 597
Qiagen* 56,000 1,652
Quorum Health Group* 45,000 1,114
Spine-Tech* 33,000 924
Target Therapeutics* 22,000 940
Vencor* 36,000 1,161
8,031
METALS & MINING--0.3%
Republic Engineered Steels* 46,000 207
METALWORKING, MACHINERY, & EQUIPMENT--2.2%
Greenfield Industries 42,000 $1,008
Wolverine Tube* 15,000 645
1,653
MISCELLANEOUS BUSINESS SERVICES--4.6%
Affymetrix* 2,200 38
Arbor Software* 8,000 342
CCC Information Services Group* 14,000 294
Dynamic Healthcare Techologies* 91,000 535
Harbinger* 12,000 300
Keane* 25,000 1,200
Planning Sciences International,
ADR* 29,100 429
Staffmark* 24,000 336
3,474
MISCELLANEOUS CONSUMER SERVICES--1.5%
Career Horizons* 29,000 1,127
OIL-DOMESTIC--3.8%
Belden & Blake* 39,000 907
Cairn Energy USA* 105,000 1,037
Petroleum Geo Services, ADR* 33,000 899
2,843
RETAIL--4.3%
BAB Holdings* 121,350 849
Buffets* 86,580 909
Cooker Restaurant 41,000 487
Eagle Hardware & Garden* 30,000 810
New York Bagel* 24,000 216
3,271
SEMI-CONDUCTORS/INSTRUMENTS--2.9%
Advanced Energy Industries* 83,000 446
Aetrium* 35,500 373
Etec Systems* 30,800 1,047
Fusion Systems* 18,000 324
2,190
SERVICES-PREPACKAGED SOFTWARE--7.6%
BTG* 111,000 1,609
Geoworks* 32,500 845
Hyperion Software* 30,000 461
National Instruments* 27,000 715
Onewave* 30,500 461
Platinum Technology* 31,000 391
Siebel Systems* 30,000 1,249
5,731
SERVICES-SECURITY--1.3%
ITI Technologies* 27,000 952
TELEPHONES & TELECOMMUNICATION--3.7%
A+ Network* 18,969 145
American Paging* 32,000 184
Broadband Technologies* 27,000 553
Brooks Fiber Properties* 18,800 540
International Cabletel* 42,000 1,076
Lightbridge* 9,700 113
Metro One Telecommunications* 12,000 162
2,773
TRUCKING--2.1%
Fritz* 32,000 464
Landstar System* 43,000 1,150
1,614
WHOLESALE--1.1%
Neuromedical Systems* 36,000 670
Telcom Semiconductor* 36,000 171
841
TOTAL COMMON STOCKS
(Cost $57,742) 68,492
PREFERRED CONVERTIBLE STOCK--0.3%
MISCELLANEOUS BUSINESS SERVICES--0.3%
Network Imaging 14,000 203
TOTAL PREFERRED CONVERTIBLE STOCK
(Cost $227) 203
WARRANT--0.0%
ATS Medical* 43,000 21
TOTAL WARRANT
(Cost $12) 21
RELATED PARTY MONEY MARKET FUNDS--9.4%
First American Government
Obligations Fund (A) 3,490,520 3,491
First American Prime
Obligations Fund (A) 3,610,70 3,611
TOTAL RELATED PARTY MONEY MARKET FUNDS
(Cost $7,102) 7,102
REPURCHASE AGREEMENT--0.9%
Merrill Lynch 5.627%, dated 09/30/96, matures
10/01/96, repurchase price $669,697
(collateralized by U.S. Treasury STRIPS,
total par value $3,040,000, 08/15/17: total
market value $683,058) 670 670
TOTAL REPURCHASE AGREEMENT
(Cost $670) 670
TOTAL INVESTMENTS--101.1%
(Cost $65,753) 76,488
OTHER ASSETS AND LIABILITIES, NET--(1.1%) $ (797)
NET ASSETS:
Portfolio shares--Institutional Class
($.0001 par value--2 billion authorized)
based on 4,937,888 outstanding shares $59,732
Portfolio shares--Retail Class A
($.0001 par value--2 billion authorized)
based on 126,417 outstanding shares 1,563
Portfolio shares--Retail Class B ($.0001
par value--2 billion authorized) based on
55,002 outstanding shares 721
Accumulated net investment loss (3)
Accumulated net realized gain on investments 2,943
Net unrealized appreciation of investments 10,735
TOTAL NET ASSETS--100.0% $75,691
NET ASSET VALUE, OFFERING PRICE, AND
REDEMPTION PRICE PER SHARE--INSTITUTIONAL
CLASS $ 14.79
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE--RETAIL CLASS A $ 14.77
Maximum sales charge of 4.50% (1) 0.70
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 15.47
NET ASSET VALUE AND OFFERING PRICE PER
SHARE--RETAIL CLASS B (2) $ 14.53
* Non-income producing security
(1) The offer price is calculated by dividing the net asset value by 1
minus the maximum sales charge of 4.50%
(2) Retail Class B has a contingent deferred sales charge. For a
description of possible redemption charge, see the notes to the
financial statements.
(A) These money market funds are advised by First Bank National Association
who also serve as Adviser for this Fund. See also the Notes to the
Financial Statements.
ADR--American Depository Receipt
Cl--Class
STRIPS--Separately Trading of Registered Interest and Principal of
Securities
The accompanying notes are an integral part of the financial statements.
INTERNATIONAL FUND
Description Shares Value (000)
FOREIGN COMMON STOCKS--91.4%
ARGENTINA--0.2%
Commercial del Plata* 57,000 $ 138
Dycasa Dragados,Cl B 60,000 203
341
BRAZIL--0.9%
Cia Vale Rio Doce, ADR (A) 20,900 410
Telecom Brasileiras, ADR 10,100 793
1,203
CANADA--1.5%
Canadian Natural Resource* 14,300 321
Northern Telecom 7,400 427
Potash of Saskatchewan 4,600 336
Renaissance* 21,700 637
Toronto Dominion Bank 17,500 355
2,076
CHILE--1.3%
Compania de Telefonos Chile, ADR 8,500 821
Enersis, ADR 14,700 474
Quimica y Minera Chile, ADR 8,700 486
1,781
FINLAND--0.2%
AMER Group, Cl A 13,600 307
FRANCE--4.6%
Canal Plus 7,200 1,771
Carrefour Supermarkets 600 337
Castorama Dubois Investisements 3,350 607
L'Oreal 4,920 1,668
Schneider 19,800 932
Total Compaigne, Cl B 14,100 1,110
6,425
GERMANY--5.6%
Adidas 13,200 1,202
Bayer 26,600 971
Bayerisch Moteren Werke 1,600 916
Bayerische Hypotheken 10,800 308
Bayerische Vereinsbank 18,200 631
Deutsche Bank 12,400 583
Hoechst 48,200 1,756
Munchener Ruckversiche 140 317
SGL Carbon 3,700 431
Veba 12,800 670
7,785
HONG KONG--5.3%
Cheung Kong Holdings 183,000 $1,408
Citic Pacific 464,700 2,103
First Pacific 1,041,000 1,575
HSBC Holdings 20,000 371
Sun Hung Kai Properties 146,000 1,553
VTech Holdings 175,200 322
7,332
INDIA--0.8%
East India Hotels, GDR (A) 20,000 393
Larsen & Toubro, New (A) 16,800 245
Ranbaxy Laboratories, GDR (A) 12,000 219
Tata Engineering (A) 16,100 209
1,066
IRELAND--1.1%
Elan, ADR* 52,800 1,577
ISRAEL--0.3%
ECI Telecommunications 21,000 441
ITALY--2.1%
Gucci Group, ADR 22,200 1,610
STET 116,000 314
Telecom Italia Mobile 442,000 982
2,906
JAPAN--30.3%
Advantest 800 33
Alpine Electronics 40,000 699
Bridgestone 89,000 1,603
Daifuku 17,000 233
Daiichi 22,000 572
Daini Denden 114 920
Daiwa Securities 77,000 883
DDI 79 638
Eisai 37,000 703
Honda Motor 40,000 1,004
Ito Yokado 32,000 1,815
Japan Airlines* 130,000 908
Jusco 41,000 1,245
Kao 71,000 884
Keyence 4,100 507
Komatsu 123,000 1,065
Marui 42,000 809
Matsushita Communications 27,000 731
Matsushita Electric 87,000 1,458
Mitsubishi 53,000 674
Mitsubishi Electric 70,000 477
Mitsubishi Estate 123,000 1,686
Mitsubishi Heavy Industries 217,000 1,764
Mitsui Fudosan 51,000 676
Mitsui Marine & Fire Insurance 134,000 965
Nikko Securities 64,000 683
Nippon Steel 101,000 313
Nissan Motors 86,000 693
Nomura Securities 27,000 496
NTT Data Communications 36 1,116
Obayashi 72,000 590
Okuma Machinery Works* 55,000 557
Sankyo 22,000 562
Sanwa Bank 29,000 522
Showa Shell Sekiyo 33,000 334
SMC 3,300 231
Sony 52,000 3,276
Sumitomo Bank 18,000 332
Sumitomo Electric 92,000 1,261
Sumitomo Marine & Fire Insurance 131,000 1,031
Sumitomo Realty & Development 88,000 677
Sumitomo Trust & Banking 22,000 276
Suzuki Motor 102,000 1,243
Takeda Chemical 94,000 1,718
TDK 23,000 1,428
Toyota Motor 64,000 1,634
41,925
LUXEMBOURG--0.2%
Millicom International* 5,600 226
MALAYSIA--1.7%
Arab-Malaysian Merchant Bank* 98,000 712
Malayan Banking 34,000 338
New Straits Times Press 189,000 996
Technology Resources* 103,000 271
2,317
MEXICO--1.6%
Carso Global Telecom, ADR* 25,000 131
Grupo Carso, ADS 25,000 233
Grupo Elektra 33,000 219
Grupo Financiero Banamex, Cl B* 170,000 368
Grupo Financiero Inbursa, Cl B* 96,000 374
Grupo Posadas, Cl A* 825,000 382
Grupo Synkro, ADR* 275,000 53
Invercorporacion, ADR 25,000 7
Kimberly Clark, Cl A 23,200 439
2,206
NETHERLANDS--5.7%%
AMEV 12,650 378
Elsevier 43,700 722
Getronics 26,700 677
Ing Groep 45,600 1,422
Nutricia Vernide Bedrijven 3,400 449
Randstad Holdings 6,900 544
Royal Dutch Petroleum 15,600 2,437
Unilever 2,200 347
Wolters Kluwer, CI C 7,200 905
7,881
NEW ZEALAND--0.2%
Lion Nathan 116,300 289
NORWAY--0.7%
Norsk Hydro 19,400 908
PERU--1.2%
Cementos Norte Pacasmayo, CI T 68,486 109
Cia de Minas Buenaventura, Cl T 36,864 334
Cia Peruana de Telefonos, Cl B 331,559 747
Credicorp 23,519 447
1,637
PHILIPPINES--0.0%
San Miguel, Cl B 18,100 59
PORTUGAL--0.5%
Portugal Telecom, ADR 26,900 693
SINGAPORE--0.3%
City Developments 46,600 397
SOUTH KOREA--0.2%
Korea Mobile Telecom ADR* 20,800 315
Samsung Electric 1/2 Voting, GDR (A) 460 23
338
SPAIN--1.2%
Telefonica de Espana 89,700 1,666
SWEDEN--4.4%
Asea Brown Boveri Group 6,750 713
Astra, Cl B 35,900 1,476
Atlas Copco, Cl B 30,900 634
Autoliv 24,400 1,053
Ericsson Telephone, ADR 73,800 1,873
Securitas, Cl B* 12,300 297
6,046
SWITZERLAND--6.9%
Asea Brown Boveri Group 695 850
Ciba Geigy, registered 1,625 2,078
CS Holdings, registered 6,000 593
Nestle, registered 1,175 1,309
Roche Holdings 244 1,796
Sandoz Pharmaceutical, registered 2,490 2,989
9,615
THAILAND--0.4%
Total Access Communications, ADR 73,000 540
UNITED KINGDOM--12.0%
BPB Industries 63,000 369
British Petroleum 33,200 345
British Sky Broadcasting, ADR 27,100 1,491
Burmah Castrol 19,700 353
Enterprise Oil 129,000 1,100
General Electric 170,000 1,053
Granada Group 29,300 393
International Cabletel* 13,300 341
Land Securities 42,800 467
Logica 31,000 365
Marks & Spencer 128,000 995
Next 122,400 1,086
Reuters Holdings 253,100 2,926
Siebe 98,200 1,549
SmithKline Beecham 70,300 859
Tele-Communications
International, Cl A* 20,700 313
Zeneca Group 102,000 2,536
16,541
TOTAL FOREIGN COMMON STOCKS
(Cost $117,801) 126,524
FOREIGN PREFERRED STOCK--2.0%
GERMANY--2.0%
SAP 16,300 2,733
TOTAL FOREIGN PREFERRED STOCK
(Cost $2,534) 2,733
REPURCHASE AGREEMENT-- 6.2%
Merrill Lynch 5.627%, dated 9/30/96,
matures 10/01/96, repurchase price
$8,521,372 (collateralized by various U.S.
Treasury STRIPS, total par value
$39,763,000, 08/15/17-02/15/18: total
market value $8,691,892) 8,521 8,521
TOTAL REPURCHASE AGREEMENT
(Cost $8,521) 8,521
TOTAL INVESTMENTS--99.6%
(Cost $128,856) 137,778
OTHER ASSETS AND LIABILITIES, NET--0.4% 599
NET ASSETS:
Portfolio shares--Institutional Class ($.0001 par
value--2 billion authorized) based on 13,122,945
outstanding shares $129,793
Portfolio shares--Retail Class A ($.0001 par
value--2 billion authorized) based on
191,084 outstanding shares 1,892
Portfolio shares--Retail Class B ($.0001 par
value--2 billion authorized) based on
115,860 outstanding shares 1,144
Undistributed net investment income 716
Accumulated net realized loss on
investments and foreign currency transactions (4,562)
Net unrealized appreciation of forward foreign
currency contracts, foreign currency and
translation of other assets and liabilities in
foreign currency 472
Net unrealized appreciation of
investments 8,922
TOTAL NET ASSETS--100.0% $138,377
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--INSTITUTIONAL CLASS $ 10.31
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE--RETAIL CLASS A $ 10.28
Maximum sales charge of 4.50% (1) 0.48
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 10.76
NET ASSET VALUE AND OFFERING PRICE
PER SHARE--RETAIL CLASS B (2) $ 10.14
* Non-income producing security
(1) The offer price is calculated by dividing the net asset value by 1
minus the maximum sales charge of 4.50%
(2) Retail Class B has a contingent deferred sales charge. For a
description of a possible redemption charge, see the notes to the
financial statements.
(A) Securities sold within terms of a private placement memorandum, exempt
from registration under Section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or other
"accredited investors". ADR--American Depository Receipt
ADS--American Depository Shares
Cl--Class
GDR--Global Depository Receipt
STRIPS--Separately Trading of Registered Interest and Principal of
Securities
The accompanying notes are an integral part of the financial statements.
HEALTH SCIENCES FUND
Description Shares Value (000)
COMMON STOCKS--93,7%
CHEMICALS--3.5%
Cambrex 13,800 $ 467
DRUGS--8.9%
Chirex 8,400 109
Galagen* 11,800 68
Genzyme-Tissue Repair* 2,400 25
Immulogic Pharmaceutical* 9,300 76
Liposome* 6,000 113
R.P. Scherer* 7,000 341
Schering Plough 500 31
Sepracor* 6,500 92
SmithKline Beecham, ADR 5,500 335
1,190
INSURANCE--5.7%
Pacificare Health Systems, Cl B* 3,200 277
United Healthcare 6,500 271
Value Health* 11,400 214
762
MACHINERY--2.6%
Pall 12,200 345
MEDICAL PRODUCTS & SERVICES--57.6%
Affymetrix* 400 7
Algos Pharmaceuticals* 5,000 70
American Medical Response* 7,900 284
American Oncology Resources* 5,200 58
Arrow International 6,000 207
ATS Medical* 22,400 165
Biochem Pharmaceuticals* 5,800 233
Boston Scientific* 6,700 385
Cambridge Heart* 15,000 165
Columbia/HCA Healthcare 4,200 239
Conceptus* 7,800 107
Elan, ADR* 7,400 221
Genesis Health Ventures* 9,700 273
Health Management Associates, Cl A* 10,000 249
HealthSource* 11,200 165
Idexx Laboratories* 8,200 371
Integrated Health Services 8,100 204
Medtronic 7,100 455
Metra Biosystems* 8,600 52
Neuromedical Systems* 9,000 168
Nitinol Medical Technologies* 11,000 124
Novoste* 3,300 44
Physio-Control International* 16,300 412
Qiagen* 12,500 369
Quorum Health Group* 16,300 403
Sano* 8,500 172
Spine-Tech* 12,200 342
Steris* 8,400 284
Stryker 12,400 373
Target Therapeutics* 6,500 278
Tri-Point Medical* 30,000 244
Urologix* 300 5
Vencor* 10,600 342
Ventana Medical Systems* 13,400 248
7,718
MISCELLANEOUS BUSINESS SERVICES--1.0%
Quality Systems* 7,200 70
Transition Systems* 3,300 69
139
REAL ESTATE INVESTMENT TRUSTS--6.5%
Healthcare Realty Trust 12,100 286
National Health Investors 8,600 287
Nationwide Health Properties 13,400 295
868
SERVICES-PREPACKAGED SOFTWARE--3.0%
Enterprise Systems* 2,800 72
Imnet Systems* 12,500 244
Summit Medical Systems* 6,500 91
407
TESTING LABORATORIES--1.1%
Clintrials Research* 3,600 147
WHOLESALE--3.8%
Cardinal Health 3,000 248
Patterson Dental* 9,700 259
507
TOTAL COMMON STOCKS
(Cost $12,609) 12,550
WARRANT--0.1%
ATS Medical* 16,300 8
TOTAL WARRANT
(Cost $23) 8
RELATED PARTY MONEY MARKET FUND--4.2%
First American Prime
Obligations Fund (A) 564,416 564
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $564) 564
TOTAL INVESTMENTS--98.0%
(Cost $13,196) 13,122
OTHER ASSETS AND LIABILITIES, NET--2.0% 273
NET ASSETS:
Portfolio shares--Institutional Class ($.0001
par value--2 billion authorized) based on
1,264,562 outstanding shares $12,443
Portfolio shares--Retail Class A ($.0001 par
value--2 billion authorized) based on 63,760
outstanding shares 614
Portfolio shares--Retail Class B ($.0001 par
value--2 billion authorized) based on 28,599
outstanding shares 273
Undistributed net investment income 20
Accumulated net realized gain on investments 119
Net unrealized depreciation of investments (74)
TOTAL NET ASSETS--100.0% $13,395
NET ASSET VALUE, OFFERING PRICE, AND
REDEMPTION PRICE PER SHARE--INSTITUTIONAL
CLASS $ 9.87
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE--RETAIL CLASS A $ 9.86
Maximum sales charge of 4.50% (1) 0.46
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 10.32
NET ASSET VALUE AND OFFERING PRICE PER
SHARE--RETAIL CLASS B (2) $ 9.81
* Non-income producing security
(1) The offer price is calculated by dividing the net asset value by 1
minus the maximum sales charge of 4.50%
(2) Retail Class B has a contingent deferred sales charge. For a
description of possible redemption charge, see the notes to the
financial statements.
(A) This money market fund is advised by First Bank National Association
who also serve as Adviser for this Fund. See also the Notes to the
Financial Statements.
ADR--American Depository Receipt
Cl--Class
The accompanying notes are an integral part of the financial statements.
TECHNOLOGY FUND
Description Shares Value (000)
COMMON STOCKS-99.3%
AEROSPACE & DEFENSE--0.5%
Remec* 28,700 $ 405
BROADCASTING, NEWSPAPERS &
ADVERTISING--0.4%
CKS Group* 11,100 262
COMMUNICATIONS EQUIPMENT--15.0%
ADC Telecommunications* 21,500 1,376
Ascend Communications* 22,287 1,474
Broadband Technologies* 33,600 689
Cascade Communications* 5,700 464
Harman International 11,500 561
L.M. Ericsson Telephone, ADR* 16,500 419
Nokia, ADR 49,100 2,173
PictureTel* 21,500 758
Tellabs* 29,900 2,112
Westell Technologies* 19,800 876
Xetel* 48,600 237
11,139
COMPUTERS & SERVICES--11.8%
Cisco Systems* 56,000 3,475
Farallon Communications* 28,500 299
Gateway 2000* 22,300 1,068
HMT Technology* 36,800 800
Intelligroup* 10,500 142
Mackie Designs* 31,700 258
Mylex* 44,900 707
Seagate Technology* 15,400 860
Western Digital* 28,700 1,152
8,761
MEASURING DEVICES--2.0%
Fore Systems* 36,100 1,494
MISCELLANEOUS BUSINESS SERVICES--8.0%
Abacus Direct* 3,200 67
Across Data Systems* 38,400 384
Business Objects, ADR* 65,400 1,259
CCC Information Services Group* 14,100 296
Claremont Technology Group* 13,800 497
Dynamic Healthcare Techologies* 79,000 464
Engineering Animation* 2,400 58
Open Text* 17,000 102
Planning Sciences International Plc* 34,900 515
Prism Solutions* 37,700 353
Versant Object Technology* 43,900 1,043
Xylan* 16,500 895
5,933
RETAIL--1.4%
Multiple Zones* 41,900 1,037
SEMI-CONDUCTORS/INSTRUMENTS--12.2%
Adaptec* 20,300 1,218
Advanced Technology Materials* 27,600 373
Aetrium* 9,700 102
ANADIGICS* 5,607 146
Cymer* 21,000 362
Etec Systems* 34,800 1,183
Intel 29,200 2,787
LSI Logic* 45,000 1,046
Quickturn Design Systems* 63,700 868
SDL* 6,150 126
SGS-Thomson Microelectronics* 17,600 834
9,045
SERVICES-PREPACKAGED SOFTWARE--45.9%
4front Software Intl* 39,000 156
Arbor Software* 10,200 436
Aspect Development* 250 8
Broadvision* 113,600 895
BTG* 89,200 1,293
Checkfree* 29,200 584
Computer Associates International 26,050 1,556
Cylink* 28,400 408
Datalogix International* 85,600 663
Dendrite International* 22,300 675
E*trade Group* 54,000 712
Electronic Arts* 26,400 987
Excite* 10,000 84
Forte Software* 19,600 769
Gensym* 16,900 368
Geoworks* 22,000 572
Harbinger* 38,600 965
HNC Software* 28,600 1,144
Imnet Systems* 25,500 497
Integrated Systems* 1,200 40
Interlinq Software* 24,000 96
Learning Tree International* 28,600 1,058
Macromedia* 41,700 865
Maxis* 32,000 448
McAfee Associates* 908 63
Mechanical Dynamics* 54,800 959
Microsoft* 12,300 1,622
National Instruments* 35,100 930
Onewave* 29,000 439
Oracle* 56,050 2,386
Parametric Technology* 37,500 1,851
Peoplesoft* 26,000 2,164
Pure Atria* 37,400 1,412
Red Brick Systems* 24,500 588
Restrac* 67,900 1,273
S S & C Technologies* 250 2
Sapient* 10,000 445
Shiva* 11,400 654
Siebel Systems* 27,500 1,145
Spectrum Holobyte* 77,200 502
Spyglass* 23,100 436
SQA* 25,000 675
Synopsys* 27,900 1,287
34,112
TELEPHONES & TELECOMMUNICATION--0.2%
Lightbridge* 12,600 146
WHOLESALE--1.9%
Harmonic Lite* 35,300 693
Neuromedical Systems* 12,300 229
Secure Computing* 23,700 264
Silicon Storage Technology* 26,300 260
1,446
TOTAL COMMON STOCKS
(Cost $61,787) 73,780
PREFERRED STOCK--0.1%
SERVICES--PREPACKAGED SOFTWARE--0.1%
Network Imaging 5,800 84
TOTAL PREFERRED STOCK
(Cost $97) 84
RELATED PARTY MONEY MARKET FUND--2.5%
First American Prime Obligations Fund (A) 1,822,351 1,822
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $1,822) 1,822
TOTAL INVESTMENTS--101.9%
(Cost $63,706) 75,686
OTHER ASSETS AND LIABILITIES, NET--(1.9%) (1,404)
NET ASSETS:
Portfolio shares--Institutional Class ($.0001 par value--2
billion authorized) based on 3,349,509 outstanding shares $48,496
Portfolio shares--Retail Class A ($.0001 par value--2
billion authorized) based on 249,274 outstanding shares 3,986
Portfolio shares--Retail Class B ($.0001 par value--2
billion authorized) based on 295,003 outstanding shares 4,221
Accumulated net investment loss (3)
Accumulated net realized gain on investments 5,602
Net unrealized appreciation of investments 11,980
TOTAL NET ASSETS--100.0% $74,282
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER
SHARE--INSTITUTIONAL CLASS $ 19.29
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE--RETAIL
CLASS A $ 19.25
Maximum sales charge of 4.50% (1) 0.91
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 20.16
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE--RETAIL
CLASS B (2) $ 18.85
* Non-income producing security
(1) The offer price is calculated by dividing the net asset value by 1
minus the maximum sales charge of 4.50%
(2) Retail Class B has a contingent deferred sales charge. For a
description of possible redemption charge, see the notes to the
financial statements.
(A) This money market fund is advised by First Bank National Association
who also serve as Adviser for this Fund. See also the Notes to the
Financial Statements.
ADR--American Depository Receipt
STATEMENT OF ASSETS AND LIABILITIES ---- SEPTEMBER 30, 1996
<TABLE>
<CAPTION>
BALANCED
FUND
<S> <C>
ASSETS:
Investment securities, at value (cost $323,228) $362,031
RECEIVABLES:
Accrued income 2,283
Capital shares sold 18,521
Other assets 13
TOTAL ASSETS 382,848
LIABILITIES:
PAYABLES:
Accrued expenses 302
Securities purchased 12,954
Capital shares redeemed 289
Other liabilities 48
TOTAL LIABILITIES 13,593
NET ASSETS:
Portfolio shares--Institutional Class ($.0001 par value--2 billion authorized)
based on 25,297,626 outstanding shares 285,632
Portfolio shares--Retail Class A ($.0001 par value--2 billion authorized)
based on 1,592,380 outstanding shares 17,241
Portfolio shares--Retail Class B ($.0001 par value--2 billion authorized)
based on 1,185,798 outstanding shares 14,556
Undistributed net investment income 366
Accumulated net realized gain on investments 12,657
Net unrealized appreciation of investments 38,803
TOTAL NET ASSETS $369,255
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE--INSTITUTIONAL
CLASS $ 13.15
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE--RETAIL CLASS A $ 13.14
Maximum sales charge of 4.50% (1) .62
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 13.76
NET ASSET VALUE AND OFFERING PRICE PER SHARE--RETAIL CLASS B (2) $ 13.10
</TABLE>
(1) The offer price is calculated by dividing the net asset value by 1 minus
maximum sales charge of 4.50%.
(2) Retail Class B has a contingent deferred sales charge. For a description
of a possible redemption charge, see the notes to the financial statements.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
STATEMENTS OF OPERATIONS (000)
For the period ended September 30, 1996
<TABLE>
<CAPTION>
PRIME GOVERNMENT TREASURY
OBLIGATIONS OBLIGATIONS OBLIGATIONS
FUND FUND FUND
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $159,421 $53,064 $85,352
EXPENSES:
Investment advisory fees 11,294 3,822 6,254
Distribution fees--Retail Class A 317 -- --
Distribution fees--Retail Class B 7 -- --
Distribution fees--Corporate Trust Class 83 370 1,990
Administrator fees 1,945 659 1,076
Custodian fees 847 287 469
Registration fees 399 114 357
Professional fees 261 88 145
Transfer agent fees 119 45 61
Printing 133 45 72
Directors' fees 92 31 51
Amortization of organizational costs -- -- 5
Other 45 24 111
TOTAL EXPENSES 15,542 5,485 10,591
Less: Expenses Waived (2,427) (815) (1,565)
Total Net Expenses 13,115 4,670 9,026
Investment Income--net 146,306 48,394 76,326
Net realized gain (loss) on investments 4 5 (6)
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $146,310 $48,399 $76,320
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
LIMITED INTERMEDIATE INTERMEDIATE FIXED
TERM TERM GOVERNMENT INCOME
INCOME FUND INCOME FUND BOND FUND FUND
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $7,293 $ 6,076 $ 8,060 $24,344
Dividends -- -- -- --
Total investment income 7,293 6,076 8,060 24,344
EXPENSES:
Investment advisory fees 772 693 861 2,620
Administrator fees 136 118 146 445
Transfer agent fees 21 21 22 41
Amortization of organizational costs 5 5 -- --
Custodian fees 10 4 3 6
Directors' fees 4 3 4 12
Registration fees -- 10 20 61
Professional fees 10 9 12 35
Printing 7 6 8 24
Distribution fees--Retail Class A 20 6 8 21
Distribution fees--Retail Class B -- -- -- 134
Other 6 5 6 18
TOTAL EXPENSES 991 880 1,090 3,417
Less: Expenses waived or absorbed (298) (188) (228) (640)
Net expenses before expenses paid indirectly 693 692 862 2,777
Less: Expenses paid indirectly (10) -- -- (2)
Total net expenses 683 692 862 2,775
Investment income--net 6,610 5,384 7,198 21,569
REALIZED AND UNREALIZED GAINS (LOSSES) ON
INVESTMENTS--NET:
Net realized gain (loss) on investments (180) 1,117 87 3,464
Net change in unrealized appreciation (depreciation)
of investments 40 (1,247) (1,542) (8,403)
NET GAIN (LOSS) ON INVESTMENTS (140) (130) (1,455) (4,939)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $6,470 $ 5,254 $ 5,743 $16,630
</TABLE>
[WIDE TABLE CONTINUED FROM ABOVE]
<TABLE>
<CAPTION>
MINNESOTA
INSURED COLORADO REAL
INTERMEDIATE INTERMEDIATE INTERMEDIATE ASSET ESTATE
TAX FREE TAX FREE TAX FREE ALLOCATION BALANCED SECURITIES
FUND FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $2,956 $4,199 $2,791 $1,395 $ 8,025 $ 17
Dividends -- -- -- 648 3,332 679
Total investment income 2,956 4,199 2,791 2,043 11,357 696
EXPENSES:
Investment advisory fees 412 563 363 369 1,936 82
Administrator fees 70 96 62 63 329 50
Transfer agent fees 20 20 19 28 59 27
Amortization of organizational costs -- 9 9 5 5 4
Custodian fees 18 24 15 61 18 4
Directors' fees 2 3 2 2 9 --
Registration fees 10 16 1 7 54 8
Professional fees 5 7 5 5 26 1
Printing 4 5 3 3 18 1
Distribution fees--Retail Class A 4 8 6 3 44 --
Distribution fees--Retail Class B -- -- -- 15 83 2
Other 3 4 3 3 13 1
TOTAL EXPENSES 548 755 488 564 2,594 180
Less: Expenses waived or absorbed (156) (192) (125) (128) (255) (84)
Net expenses before expenses paid indirectly 392 563 363 436 2,339 96
Less: Expenses paid indirectly -- -- -- -- -- --
Total net expenses 392 563 363 436 2,339 96
Investment income--net 2,564 3,636 2,428 1,607 9,018 600
REALIZED AND UNREALIZED GAINS (LOSSES) ON
INVESTMENTS--NET:
Net realized gain (loss) on investments 352 324 290 4,611 13,465 62
Net change in unrealized appreciation (depreciation)
of investments (449) (278) (508) (125) 18,484 1,531
NET GAIN (LOSS) ON INVESTMENTS (97) 46 (218) 4,486 31,949 1,593
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $2,467 $3,682 $2,210 $6,093 $40,967 $2,193
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
</TABLE>
STATEMENTS OF OPERATIONS (000)
For the period ended September 30, 1996
<TABLE>
<CAPTION>
EQUITY EQUITY DIVERSIFIED SPECIAL
INCOME INDEX STOCK GROWTH EQUITY
FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 750 $ 954 $ 2,802 $ 944 $ 1,400
Dividends 1,965 6,273 8,696 3,188 3,639
Less: Foreign taxes withheld -- -- -- -- --
Total investment income 2,715 7,227 11,498 4,132 5,039
EXPENSES:
Investment advisory fees 448 2,034 2,988 1,327 1,584
Administrator fees 76 345 508 225 269
Transfer agent fees 29 36 83 40 62
Amortization of organizational costs 11 5 -- 11 --
Custodian fees 19 62 14 57 20
Directors' fees 2 10 13 6 8
Registration fees 12 48 64 42 10
Professional fees 6 27 40 18 21
Printing 4 19 48 12 15
Distribution fees--Retail Class A 6 11 44 10 33
Distribution fees--Retail Class B 24 44 149 37 80
Other 3 13 21 9 11
TOTAL EXPENSES 640 2,654 3,972 1,794 2,113
Less: Expenses waived or absorbed (131) (1,582) (364) (255) --
Net expenses before expenses paid indirectly 509 1,072 3,608 1,539 2,113
Less: Expenses paid indirectly -- (1) (1) -- (3)
Total net expenses 509 1,071 3,607 1,539 2,110
Investment income (loss)--net 2,206 6,156 7,891 2,593 2,929
REALIZED AND UNREALIZED GAINS (LOSSES)
ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS--NET:
Net realized gain on investments 1,913 6,653 32,493 3,561 43,439
Net realized gain on futures contracts -- 2,952 -- -- --
Net realized gain on forward foreign currency contracts
and foreign currency transactions -- -- -- -- --
Net change in unrealized appreciation (depreciation)
of investments 5,650 35,438 52,330 24,066 6,020
Net change in unrealized appreciation on forward
foreign currency contracts, foreign currency and
translation of other assets and liabilities in
foreign currency -- -- -- -- --
NET GAIN ON INVESTMENTS 7,563 45,043 84,823 27,627 49,459
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $9,769 $51,199 $92,714 $30,220 $52,388
</TABLE>
[WIDE TABLE CONTINUED FROM ABOVE]
<TABLE>
<CAPTION>
REGIONAL EMERGING HEALTH
EQUITY GROWTH INTERNATIONAL SCIENCES TECHNOLOGY
FUND FUND FUND FUND(1) FUND
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $2,073 $297 $ 440 $49 $ 97
Dividends 1,862* 87 1,649 43 52
Less: Foreign taxes withheld -- -- (131) -- --
Total investment income 3,935 384 1,958 92 149
EXPENSES:
Investment advisory fees 2,010 415 1,473 48 345
Administrator fees 341 70 140 33 62
Transfer agent fees 105 28 30 18 37
Amortization of organizational costs 5 9 9 21 9
Custodian fees 15 18 316 2 15
Directors' fees 9 2 4 -- 1
Registration fees 39 12 20 6 15
Professional fees 27 6 11 1 5
Printing 18 4 8 -- 3
Distribution fees--Retail Class A 53 2 3 1 6
Distribution fees--Retail Class B 183 5 6 1 31
Other 13 3 15 -- 6
TOTAL EXPENSES 2,818 574 2,035 131 535
Less: Expenses waived or absorbed (57) (40) -- (68) (54)
Net expenses before expenses paid indirectly 2,761 534 2,035 63 481
Less: Expenses paid indirectly (4) -- -- -- --
Total net expenses 2,757 534 2,035 63 481
Investment income (loss)--net 1,178 (150) (77) 29 (332)
REALIZED AND UNREALIZED GAINS (LOSSES)
ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS--NET:
Net realized gain on investments 22,198* 3,207 1,696 119 6,494
Net realized gain on futures contracts -- -- -- -- --
Net realized gain on forward foreign currency contracts
and foreign currency transactions -- -- 1,198 -- --
Net change in unrealized appreciation (depreciation)
of investments 6,241* 4,797 (747) (74) 5,242
Net change in unrealized appreciation on forward
foreign currency contracts, foreign currency and
translation of other assets and liabilities in
foreign currency -- -- 714 -- --
NET GAIN ON INVESTMENTS 28,439 8,004 2,861 45 11,736
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $29,617 $7,854 $2,784 $ 74 $11,404
* Includes the following amounts due to Investments in Common Stocks of
Affiliates (000): $202 of dividend income, $3,144 of realized gains, and
($7,851) of change in unrealized appreciation of investments.
(1) The Health Sciences Fund commenced operations on January 31, 1996.
The accompanying notes are an integral part of the financial statements.
</TABLE>
(THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY.)
STATEMENTS OF CHANGES IN NET ASSETS (000)
<TABLE>
<CAPTION>
PRIME GOVERNMENT
OBLIGATIONS FUND OBLIGATIONS FUND
10/1/95 10/1/94 10/1/95 10/1/94
TO TO TO TO
9/30/96 9/30/95 9/30/96 9/30/95
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income--net $ 146,306 $ 98,895 $ 48,394 $ 39,231
Net realized gain (loss) on investments 4 3 5 (36)
Net increase in net assets resulting from operations 146,310 98,898 48,399 39,195
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income--net:
Institutional class (137,264) (95,604) (36,142) (31,983)
Retail class A (6,263) (3,049) -- --
Retail class B (30) -- -- --
Corporate Trust class (2,749) (244) (12,252) (7,248)
Net realized gain on investments
Institutional class -- -- -- --
Retail class A -- -- -- --
Retail class B -- -- -- --
Corporate Trust class -- -- -- --
Total distributions (146,306) (98,897) (48,394) (39,231)
CAPITAL SHARE TRANSACTIONS
AT NET ASSET VALUE OF $1.00 PER SHARE:
Institutional class:
Proceeds from sales 15,297,762 11,741,658 6,156,036 4,886,718
Reinvestment of distributions 44,907 33,427 20,243 16,078
Payments for redemptions (15,087,516) (10,171,378) (5,949,974) (4,807,345)
Increase in net assets from Institutional Class
transactions 255,153 1,603,707 226,305 95,451
Retail class A:
Proceeds from sales 315,802 105,193 -- --
Shares issued in connection with acquisition of
Money Fund -- 63,816 -- --
Reinvestment of distributions 6,093 2,635 -- --
Payments for redemptions (282,831) (75,561) -- --
Increase in net assets from Retail Class A
transactions 39,064 96,083 -- --
Retail class B:
Proceeds from sales 2,605 14 -- --
Reinvestment of distributions 25 -- -- --
Payments for redemptions (880) -- -- --
Increase in net assets from Retail Class B
transactions 1,750 14 -- --
Corporate Trust Class:
Proceeds from sales 522,024 35,254 747,717 427,493
Shares issued in connection with acquisition of
CT Government Fund -- -- -- 156,260
Payments for redemptions (422,547) (25,519) (677,196) (384,892)
Increase in net assets from Corporate Trust Class
transactions 99,477 9,735 70,521 198,861
Increase in net assets from capital share
transactions 395,444 1,709,539 296,826 294,312
Total increase in net assets 395,448 1,709,540 296,831 294,276
Net assets at beginning of period 3,016,887 1,307,347 750,145 455,869
Net assets at end of period(1) $ 3,412,335 $ 3,016,887 $ 1,046,976 $ 750,145
[WIDE TABLE CONTINUED FROM ABOVE]
TREASURY
OBLIGATIONS FUND
10/1/95 10/1/94
TO TO
9/30/96 9/30/95
<S> <C> <C>
OPERATIONS:
Investment income--net $ 76,326 $ 48,187
Net realized gain (loss) on investments (6) 31
Net increase in net assets resulting from operations 76,320 48,218
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income--net:
Institutional class (11,845) (1,945)
Retail class A -- --
Retail class B -- --
Corporate Trust class (64,450) (46,242)
Net realized gain on investments
Institutional class (5) --
Retail class A -- --
Retail class B -- --
Corporate Trust class (26) --
Total distributions (76,326) (48,187)
CAPITAL SHARE TRANSACTIONS
AT NET ASSET VALUE OF $1.00 PER SHARE:
Institutional class:
Proceeds from sales 2,598,130 417,680
Reinvestment of distributions 4,174 1,201
Payments for redemptions (2,402,082) (301,711)
Increase in net assets from Institutional Class
transactions 200,222 117,170
Retail class A:
Proceeds from sales -- --
Shares issued in connection with acquisition of
Money Fund -- --
Reinvestment of distributions -- --
Payments for redemptions -- --
Increase in net assets from Retail Class A
transactions -- --
Retail class B:
Proceeds from sales -- --
Reinvestment of distributions -- --
Payments for redemptions -- --
Increase in net assets from Retail Class B
transactions -- --
Corporate Trust Class:
Proceeds from sales 5,207,698 3,746,678
Shares issued in connection with acquisition of
CT Government Fund -- --
Payments for redemptions (4,630,381) (3,453,980)
Increase in net assets from Corporate Trust Class
transactions 577,317 292,698
Increase in net assets from capital share
transactions 777,539 409,868
Total increase in net assets 777,533 409,899
Net assets at beginning of period 1,155,989 746,090
Net assets at end of period(1) $ 1,933,522 $ 1,155,989
(1)Includes undistributed net investment income (000) of $9 and $0 for Prime
Obligations Fund, $35 and $0 for Government Obligations Fund, and $31 and $0
for Treasury Obligations Fund at September 30, 1996 and September 30, 1995,
respectively.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS (000)
INTERMEDIATE INTERMEDIATE
LIMITED TERM TERM INCOME GOVERNMENT
INCOME FUND FUND BOND FUND
10/1/95 10/1/94 10/1/95 10/1/94 10/1/95 10/1/94
to to to to to to
9/30/96 9/30/95 9/30/96 9/30/95 9/30/96 9/30/95
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Investment income--net $ 6,610 $ 6,058 $ 5,384 $ 4,867 $ 7,198 $ 4,955
Net realized gain (loss) on investments (180) (1,327) 1,117 542 87 (76)
Net change in unrealized appreciation (depreciation) of
investments 40 2,575 (1,247) 3,016 (1,542) 3,665
Net increase in net assets resulting from operations 6,470 7,306 5,254 8,425 5,743 8,544
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income--net:
Institutional class (6,192) (5,548) $ (5,260) (4,708) (7,021) (4,819)
Retail class A (461) (544) (126) (158) (187) (127)
Retail class B -- -- -- -- -- --
Net realized gain on investments:
Institutional class -- (20) (107) (23) -- --
Retail class A -- (3) (3) (1) -- --
Retail class B -- -- -- -- -- --
Tax return of capital
Institutional class -- -- -- -- -- --
Retail class A -- -- -- -- -- --
Retail class B -- -- -- -- -- --
Total distributions (6,653) (6,115) (5,496) (4,890) (7,208) (4,946)
CAPITAL SHARE TRANSACTIONS (1):
Institutional class:
Proceeds from sales 33,034 35,097 41,060 32,461 58,921 83,288
Shares issued in connection with acquisition of
Managed Income Fund -- 38,342 -- -- -- --
Reinvestment of distributions 5,073 4,773 3,790 3,568 778 315
Payments for redemptions (55,781) (38,162) (34,282) (19,532) (18,212) (14,740)
Increase (decrease) in net assets from Institutional class
transactions (17,674) 40,050 10,568 16,497 41,487 68,863
Retail class A:
Proceeds from sales 5,050 2,920 441 200 1,463 1,260
Shares issued in connection with acquisition of
Managed Income Fund -- 4,574 -- -- -- --
Reinvestment of distributions 445 482 108 143 126 99
Payments for redemptions (7,839) (7,576) (772) (1,216) (1,089) (545)
Increase (decrease) in net assets from Retail class A
transactions (2,344) 400 (223) (873) 500 814
Retail class B:
Proceeds from sales -- 1 -- -- -- --
Reinvestment of distributions -- -- -- -- -- --
Payments for redemptions -- (2) -- -- -- --
Increase (decrease) in net assets from Retail class B
transactions -- (1) -- -- -- --
Increase (decrease) in net assets from capital share
transactions (20,018) 40,449 10,345 15,624 41,987 69,677
Total increase (decrease) in net assets (20,201) 41,640 10,103 19,159 40,522 73,275
NET ASSETS AT BEGINNING OF PERIOD 121,416 79,776 90,812 71,653 103,028 29,753
NET ASSETS AT END OF PERIOD (2) $101,215 $121,416 $100,915 $ 90,812 $143,550 $103,028
(1)Capital share transactions:
Institutional class:
Shares issued 3,323 3,569 4,116 3,367 6,376 9,271
Shares issued in connection with acquisition of
Managed Income Fund -- 3,917 -- -- -- --
Shares issued in lieu of cash distributions 512 484 380 369 84 34
Shares redeemed (5,619) (3,873) (3,441) (2,012) (1,972) (1,614)
Total Institutional class transactions (1,784) 4,097 1,055 1,724 4,488 7,691
Retail class A:
Shares issued 508 297 44 20 157 137
Shares issued in connection with acquisition of
Managed Income Fund -- 468 -- -- -- --
Shares issued in lieu of cash distributions 45 49 11 15 14 11
Shares redeemed (788) (773) (77) (126) (117) (60)
Total Retail class A transactions (235) 41 (22) (91) 54 88
Retail class B:
Shares issued -- -- -- -- -- --
Shares issued in lieu of cash distributions -- -- -- -- -- --
Shares redeemed -- -- -- -- -- --
Total Retail class B transactions -- -- -- -- -- --
NET INCREASE (DECREASE) FROM SHARE TRANSACTIONS (2,019) 4,138 1,033 1,633 4,542 7,779
[WIDE TABLE CONTINUED FROM ABOVE]
FIXED MINNESOTA INSURED
INCOME INTERMEDIATE INTERMEDIATE
FUND TAX FREE FUND TAX FREE FUND
10/1/95 10/1/94 10/1/95 10/1/94 10/1/95 10/1/94
to to to to to to
9/30/96 9/30/95 9/30/96 9/30/95 9/30/96 9/30/95
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Investment income--net $ 21,569 $ 12,473 $ 2,564 $ 1,389 $ 3,636 $ 2,565
Net realized gain (loss) on investments 3,464 3,351 352 376 324 214
Net change in unrealized appreciation (depreciation) of
investments (8,403) 9,685 (449) 1,232 (278) 2,478
Net increase in net assets resulting from operations 16,630 25,509 2,467 2,997 3,682 5,257
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income--net:
Institutional class (20,552) (11,794) (2,480) (1,344) (3,496) (2,470)
Retail class A (457) (424) (68) (44) (145) (86)
Retail class B (663) (127) -- -- -- --
Net realized gain on investments:
Institutional class (2,859) (440) (326) -- (195) --
Retail class A (75) (22) (9) -- (7) --
Retail class B (104) (1) -- -- -- --
Tax return of capital
Institutional class -- -- -- -- -- --
Retail class A -- -- -- -- -- --
Retail class B -- -- -- -- -- --
Total distributions (24,710) (12,808) (2,883) (1,388) (3,843) (2,556)
CAPITAL SHARE TRANSACTIONS (1):
Institutional class:
Proceeds from sales 172,829 225,170 30,145 49,729 50,720 69,842
Shares issued in connection with acquisition of
Managed Income Fund -- -- -- -- -- --
Reinvestment of distributions 10,932 4,951 208 64 110 82
Payments for redemptions (74,839) (42,680) (8,984) (11,501) (18,988) (31,135)
Increase (decrease) in net assets from Institutional class
transactions 108,922 187,441 21,369 38,292 31,842 38,789
Retail class A:
Proceeds from sales 3,048 2,212 2,209 397 2,183 878
Shares issued in connection with acquisition of
Managed Income Fund -- -- -- -- -- --
Reinvestment of distributions 394 387 59 36 90 71
Payments for redemptions (2,792) (3,165) (617) (622) (556) (307)
Increase (decrease) in net assets from Retail class A
transactions 650 (566) 1,651 (189) 1,717 642
Retail class B:
Proceeds from sales 12,078 7,180 -- -- -- --
Reinvestment of distributions 676 118 -- -- -- --
Payments for redemptions (3,560) (255) -- -- -- --
Increase (decrease) in net assets from Retail class B
transactions 9,194 7,043 -- -- -- --
Increase (decrease) in net assets from capital share
transactions 118,766 193,918 23,020 38,103 33,559 39,431
Total increase (decrease) in net assets 110,686 206,619 22,604 39,712 33,398 42,132
NET ASSETS AT BEGINNING OF PERIOD 304,949 98,330 47,008 7,296 63,912 21,780
NET ASSETS AT END OF PERIOD (2) $415,635 $304,949 $ 69,612 $ 47,008 $ 97,310 $ 63,912
(1)Capital share transactions:
Institutional class:
Shares issued 15,824 21,255 2,816 4,792 5,106 7,280
Shares issued in connection with acquisition of
Managed Income Fund -- -- -- -- -- --
Shares issued in lieu of cash distributions 1,005 467 20 6 11 8
Shares redeemed (6,879) (4,012) (841) (1,103) (1,909) (3,183)
Total Institutional class transactions 9,950 17,710 1,995 3,695 3,208 4,105
Retail class A:
Shares issued 278 205 206 37 218 90
Shares issued in connection with acquisition of
Managed Income Fund -- -- -- -- -- --
Shares issued in lieu of cash distributions 36 37 6 4 9 8
Shares redeemed (255) (301) (58) (59) (56) (31)
Total Retail class A transactions 59 (59) 154 (18) 171 67
Retail class B:
Shares issued 1,103 667 -- -- -- --
Shares issued in lieu of cash distributions 62 11 -- -- -- --
Shares redeemed (329) (23) -- -- -- --
Total Retail class B transactions 836 655 -- -- -- --
NET INCREASE (DECREASE) FROM SHARE TRANSACTIONS 10,845 18,306 2,149 3,677 3,379 4,172
[WIDE TABLE CONTINUED FROM ABOVE]
COLORADO
INTERMEDIATE ASSET
TAX FREE FUND ALLOCATION FUND BALANCED FUND
10/1/95 10/1/94 10/1/95 10/1/94 10/1/95 10/1/95
to to to to to to
9/30/96 9/30/95 9/30/96 9/30/95 9/30/96 9/30/95
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Investment income--net $ 2,428 $ 1,967 $ 1,607 $ 1,504 $ 9,018 $ 6,024
Net realized gain (loss) on investments 290 234 4,611 1,590 13,465 7,484
Net change in unrealized appreciation (depreciation) of
investments (508) 2,043 (125) 4,397 18,484 18,934
Net increase in net assets resulting from operations 2,210 4,244 6,093 7,491 40,967 32,442
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income--net:
Institutional class (2,305) (1,904) (1,528) (1,451) (8,265) (5,355)
Retail class A (121) (63) (40) (24) (520) (458)
Retail class B -- -- (33) (6) (386) (32)
Net realized gain on investments:
Institutional class (236) (2) (1,575) (1,084) (6,878) (1,857)
Retail class A (11) -- (41) (15) (433) (188)
Retail class B -- -- (28) (1) (321) (7)
Tax return of capital
Institutional class -- -- -- -- -- --
Retail class A -- -- -- -- -- --
Retail class B -- -- -- -- -- --
Total distributions (2,673) (1,969) (3,245) (2,581) (16,803) (7,897)
CAPITAL SHARE TRANSACTIONS (1):
Institutional class:
Proceeds from sales 7,303 47,042 15,736 8,308 147,476 76,127
Shares issued in connection with acquisition of
Managed Income Fund -- -- -- -- -- --
Reinvestment of distributions 6 14 3,076 2,516 15,199 7,075
Payments for redemptions (8,015) (6,496) (9,929) (19,615) (43,865) (38,755)
Increase (decrease) in net assets from Institutional class
transactions (706) 40,560 8,883 (8,791) 118,810 44,447
Retail class A:
Proceeds from sales 1,163 1,496 802 298 5,472 1,737
Shares issued in connection with acquisition of
Managed Income Fund -- -- -- -- -- --
Reinvestment of distributions 79 29 79 37 1,023 640
Payments for redemptions (545) (74) (106) (145) (2,371) (2,783)
Increase (decrease) in net assets from Retail class A
transactions 697 1,451 775 190 4,124 (406)
Retail class B:
Proceeds from sales -- -- 1,805 543 12,197 2,775
Reinvestment of distributions -- -- 60 7 337 37
Payments for redemptions -- -- (223) (30) (930) (134)
Increase (decrease) in net assets from Retail class B
transactions -- -- 1,642 520 11,604 2,678
Increase (decrease) in net assets from capital share
transactions (9) 42,011 11,300 (8,081) 134,538 46,719
Total increase (decrease) in net assets (472) 44,286 14,148 (3,171) 158,702 71,264
NET ASSETS AT BEGINNING OF PERIOD 52,260 7,974 44,774 47,945 210,553 139,289
NET ASSETS AT END OF PERIOD (2) $ 51,788 $ 52,260 $ 58,922 $ 44,774 $369,255 $210,553
(1)Capital share transactions:
Institutional class:
Shares issued 696 4,676 1,320 765 11,725 6,800
Shares issued in connection with acquisition of
Managed Income Fund -- -- -- -- -- --
Shares issued in lieu of cash distributions 1 2 260 241 1,231 648
Shares redeemed (764) (631) (828) (1,868) (3,504) (3,493)
Total Institutional class transactions (67) 4,047 752 (862) 9,452 3,955
Retail class A:
Shares issued 111 144 66 28 437 155
Shares issued in connection with acquisition of
Managed Income Fund -- -- -- -- -- --
Shares issued in lieu of cash distributions 8 3 7 3 83 59
Shares redeemed (52) (7) (9) (14) (190) (255)
Total Retail class A transactions 67 140 64 17 330 (41)
Retail class B:
Shares issued -- -- 152 50 975 241
Shares issued in lieu of cash distributions -- -- 5 1 27 3
Shares redeemed -- -- (19) (3) (74) (12)
Total Retail class B transactions -- -- 138 48 928 232
NET INCREASE (DECREASE) FROM SHARE TRANSACTIONS -- 4,187 954 (797) 10,710 4,146
[WIDE TABLE CONTINUED FROM ABOVE]
REAL ESTATE
SECURITIES FUND
10/1/95 6/30/95(3)
to to
9/30/96 9/30/95
<S> <C> <C>
OPERATIONS:
Investment income--net $ 600 $ 69
Net realized gain (loss) on investments 62 --
Net change in unrealized appreciation (depreciation) of
investments 1,531 170
Net increase in net assets resulting from operations 2,193 239
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income--net:
Institutional class (608) (58)
Retail class A (8) --
Retail class B (8) --
Net realized gain on investments:
Institutional class -- --
Retail class A -- --
Retail class B -- --
Tax return of capital
Institutional class (203) --
Retail class A (2) (20)
Retail class B (3) --
Total distributions (832) (78)
CAPITAL SHARE TRANSACTIONS (1):
Institutional class:
Proceeds from sales 11,294 5,595
Shares issued in connection with acquisition of
Managed Income Fund -- --
Reinvestment of distributions -- --
Payments for redemptions (478) --
Increase (decrease) in net assets from Institutional class
transactions 10,816 5,595
Retail class A:
Proceeds from sales 308 1
Shares issued in connection with acquisition of
Managed Income Fund -- --
Reinvestment of distributions 5 --
Payments for redemptions (105) --
Increase (decrease) in net assets from Retail class A
transactions 208 1
Retail class B:
Proceeds from sales 287 1
Reinvestment of distributions 11 --
Payments for redemptions (57) --
Increase (decrease) in net assets from Retail class B
transactions 241 1
Increase (decrease) in net assets from capital share
transactions 11,265 5,597
Total increase (decrease) in net assets 12,626 5,758
NET ASSETS AT BEGINNING OF PERIOD 5,758 --
NET ASSETS AT END OF PERIOD (2) $ 18,384 $ 5,758
(1)Capital share transactions:
Institutional class:
Shares issued 1,041 555
Shares issued in connection with acquisition of
Managed Income Fund -- --
Shares issued in lieu of cash distributions -- --
Shares redeemed (44) --
Total Institutional class transactions 997 555
Retail class A:
Shares issued 29 --
Shares issued in connection with acquisition of
Managed Income Fund -- --
Shares issued in lieu of cash distributions -- --
Shares redeemed (9) --
Total Retail class A transactions 20 --
Retail class B:
Shares issued 27 --
Shares issued in lieu of cash distributions 1 --
Shares redeemed (5) --
Total Retail class B transactions 23 --
NET INCREASE (DECREASE) FROM SHARE TRANSACTIONS 1,040 555
(2)Includes undistributed (distributions in excess of) net investment income
(000) of $(1) and $38 for Limited Term Income Fund, $(1) and $1 for
Intermediate Term Income Fund, $0 and $9 for Intermediate Government Bond
Fund, $31 and $134 for Fixed Income Fund, $17 and $1 for Intermediate Tax
Free Income Fund, $4 and $9 for Minnesota Insured Intermediate Tax Free Fund,
$4 and $2 for Colorado Intermediate Tax Free Income Fund, $113 and $33 for
Asset Allocation Fund, $366 and $203 for Balanced Fund, and $(13) and $11 for
Real Estate Securities Fund, at September 30, 1996 and September 30, 1995,
respectively.
(3)The Real Estate Securities Fund commenced operations on June 30, 1995.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS (000)
EQUITY EQUITY
INCOME FUND INDEX FUND STOCK FUND
10/1/95 10/1/94 10/1/95 10/1/94 10/1/95 10/1/94
to to to to to to
9/30/96 9/30/95 9/30/96 9/30/95 9/30/96 9/30/95
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Investment income (loss)--net $ 2,206 $ 1,701 $ 6,156 $ 4,387 $ 7,891 $ 5,063
Net realized gain (loss) on investments 1,913 435 6,653 1,499 32,493 17,763
Net realized gain on futures contracts -- -- 2,952 1,525 -- --
Net realized gain on forward foreign currency contracts
and foreign currency transactions -- -- -- -- -- --
Net change in unrealized appreciation (depreciation) of
investments 5,650 5,876 35,438 40,664 52,330 35,581
Net change in unrealized appreciation on futures contracts -- -- -- 15 -- --
Net change in unrealized appreciation (depreciation) on
forward foreign currency contracts, foreign currency and
translation of other
assets and liabilities in foreign currency -- -- -- -- -- --
Net increase in net assets resulting from operations 9,769 8,012 51,199 48,090 92,714 58,407
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income--net:
Institutional class (2,083) (1,562) (5,941) (4,282) (6,914) (4,669)
Retail class A (75) (70) (79) (28) (337) (182)
Retail class B (61) (11) (51) (5) (342) (29)
Net realized gain on investments:
Institutional class (50) -- (3,073) (1,427) (17,819) (6,156)
Retail class A (2) -- (35) (7) (868) (307)
Retail class B (2) -- (31) (1) (881) (26)
Total distributions (2,273) (1,643) (9,210) (5,750) (27,161) (11,369)
CAPITAL SHARE TRANSACTIONS (1):
Institutional class
Proceeds from sales 17,718 35,073 145,084 47,941 138,818 155,804
Shares issued in connection with the aquisition
of Limited Volatility Stock Fund -- -- -- -- 17,977 --
Reinvestment of distributions 196 196 8,158 5,459 16,568 7,982
Payments for redemptions (12,403) (6,696) (64,387) (40,076) (75,002) (50,899)
Increase in net assets from Institutional class transactions 5,511 28,573 88,855 13,324 98,361 112,887
Retail class A:
Proceeds from sales 1,475 623 4,351 1,205 9,261 3,938
Reinvestment of distributions 71 67 107 33 1,036 463
Payments for redemptions (1,222) (789) (990) (181) (3,205) (1,552)
Increase (decrease) in net assets from Retail class A
transactions 324 (99) 3,468 1,057 7,092 2,849
Retail class B:
Proceeds from sales 2,585 1,241 6,999 1,092 14,464 6,337
Reinvestment of distributions 59 10 80 5 626 54
Payments for redemptions (388) (82) (648) (24) (1,295) (195)
Increase in net assets from Retail class B transactions 2,256 1,169 6,431 1,073 13,795 6,196
Increase in net assets from capital share transactions 8,091 29,643 98,754 15,454 119,248 121,932
Total increase in net assets 15,587 36,012 140,743 57,794 184,801 168,970
NET ASSETS AT BEGINNING OF PERIOD 55,354 19,342 222,269 164,475 332,686 163,716
NET ASSETS AT END OF PERIOD (2) $ 70,941 $ 55,354 $363,012 $222,269 $517,487 $332,686
(1)Capital share transactions:
Shares issued 1,473 3,492 10,067 4,043 6,743 9,002
Shares issued in connection with the aquisition
of Limited Volatility Stock Fund -- -- -- -- 917 --
Shares issued in lieu of cash distributions 17 19 572 484 842 487
Shares redeemed (1,024) (643) (4,525) (3,454) (3,626) (2,902)
Total Institutional class transactions 466 2,868 6,114 1,073 4,876 6,587
Retail class A:
Shares issued 121 58 302 102 450 218
Shares issued in lieu of cash distributions 6 7 8 3 53 28
Shares redeemed (101) (75) (68) (16) (154) (88)
Total Retail class A transactions 26 (10) 242 89 349 158
Retail class B:
Shares issued 216 117 485 89 705 348
Shares issued in lieu of cash distributions 5 1 6 -- 32 3
Shares redeemed (32) (8) (46) (2) (63) (10)
Total Retail class B transactions 189 110 445 87 674 341
NET INCREASE IN CAPITAL SHARES 681 2,968 6,801 1,249 5,899 7,086
[WIDE TABLE CONTINUED FROM ABOVE]
DIVERSIFIED SPECIAL
GROWTH FUND EQUITY FUND
10/1/95 10/1/94 10/1/95 10/1/94
to to to to
9/30/96 9/30/95 9/30/96 9/30/95
<S> <C> <C> <C> <C>
OPERATIONS:
OPERATIONS:
Investment income (loss)--net $ 2,593 $ 1,384 $ 2,929 $ 4,029
Net realized gain (loss) on investments 3,561 2,291 43,439 15,970
Net realized gain on futures contracts -- -- -- --
Net realized gain on forward foreign currency contracts
and foreign currency transactions -- -- -- --
Net change in unrealized appreciation (depreciation) of
investments 24,066 21,333 6,020 4,572
Net change in unrealized appreciation on futures contracts -- -- -- --
Net change in unrealized appreciation (depreciation) on
forward foreign currency contracts, foreign currency and
translation of other
assets and liabilities in foreign currency -- -- -- --
Net increase in net assets resulting from operations 30,220 25,008 52,388 24,571
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income--net:
Institutional class (2,494) (1,245) (2,697) (3,740)
Retail class A (49) (29) (140) (182)
Retail class B (21) (2) (34) (32)
Net realized gain on investments:
Institutional class -- -- (15,365) (8,609)
Retail class A -- -- (848) (473)
Retail class B -- -- (454) (52)
Total distributions (2,564) (1,276) (19,538) (13,088)
CAPITAL SHARE TRANSACTIONS (1):
Institutional class
Proceeds from sales 101,788 91,647 56,765 72,724
Shares issued in connection with the aquisition
of Limited Volatility Stock Fund -- -- -- --
Reinvestment of distributions 832 411 14,489 10,320
Payments for redemptions (36,094) (14,227) (54,570) (20,701)
Increase in net assets from Institutional class transactions 66,526 77,831 16,684 62,343
Retail class A:
Proceeds from sales 4,071 877 17,664 5,207
Reinvestment of distributions 43 29 965 649
Payments for redemptions (2,088) (622) (14,336) (2,109)
Increase (decrease) in net assets from Retail class A
transactions 2,026 284 4,293 3,747
Retail class B:
Proceeds from sales 4,817 765 6,794 4,195
Reinvestment of distributions 21 2 475 79
Payments for redemptions (436) (18) (676) (114)
Increase in net assets from Retail class B transactions 4,402 749 6,593 4,160
Increase in net assets from capital share transactions 72,954 78,864 27,570 70,250
Total increase in net assets 100,610 102,596 60,420 81,733
NET ASSETS AT BEGINNING OF PERIOD 136,383 33,787 218,242 136,509
NET ASSETS AT END OF PERIOD (2) $236,993 $136,383 $278,662 $218,242
(1)Capital share transactions:
Shares issued 8,009 9,131 3,051 4,412
Shares issued in connection with the aquisition
of Limited Volatility Stock Fund -- -- -- --
Shares issued in lieu of cash distributions 65 41 862 658
Shares redeemed (2,817) (1,398) (3,059) (1,236)
Total Institutional class transactions 5,257 7,774 854 3,834
Retail class A:
Shares issued 320 82 971 305
Shares issued in lieu of cash distributions 3 3 57 41
Shares redeemed (164) (63) (796) (121)
Total Retail class A transactions 159 22 232 225
Retail class B:
Shares issued 388 70 370 252
Shares issued in lieu of cash distributions 1 -- 28 5
Shares redeemed (34) (1) (37) (6)
Total Retail class B transactions 355 69 361 251
NET INCREASE IN CAPITAL SHARES 5,771 7,865 1,447 4,310
[WIDE TABLE CONTINUED FROM ABOVE]
REGIONAL EMERGING INTERNATIONAL
EQUITY FUND GROWTH FUND FUND
10/1/95 10/1/94 10/1/95 10/1/94 10/1/95 10/1/94
to to to to to to
9/30/96 9/30/95 9/30/96 9/30/95 9/30/96 9/30/95
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Investment income (loss)--net $ 1,178 $ 1,068 $ (150) $ 42 $ (77) $ 82
Net realized gain (loss) on investments 22,198 16,157 3,207 1,122 1,696 (5,987)
Net realized gain on futures contracts -- -- -- -- -- --
Net realized gain on forward foreign currency contracts
and foreign currency transactions -- -- -- -- 1,198 1,921
Net change in unrealized appreciation (depreciation) of
investments 6,241 37,100 4,797 5,699 (747) 8,360
Net change in unrealized appreciation on futures contracts -- -- -- -- -- --
Net change in unrealized appreciation (depreciation) on
forward foreign currency contracts, foreign currency and
translation of other
assets and liabilities in foreign currency -- -- -- -- 714 (202)
Net increase in net assets resulting from operations 29,617 54,325 7,854 6,863 2,784 4,174
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income--net:
Institutional class (324) (705) (19) (24) (2,012)(4) --
Retail class A (5) (45) -- -- (17)(4) --
Retail class B (1) (1) -- -- (6)(4) --
Net realized gain on investments:
Institutional class (13,722) (2,571) (1,270) (158) -- --
Retail class A (1,103) (216) (15) (1) -- --
Retail class B (703) (10) (8) -- -- --
Total distributions (15,858) (3,548) (1,312) (183) (2,035) --
CAPITAL SHARE TRANSACTIONS (1):
Institutional class
Proceeds from sales 137,773 60,768 31,596 30,230 49,164 50,343
Shares issued in connection with the aquisition
of Limited Volatility Stock Fund -- -- -- -- -- --
Reinvestment of distributions 12,244 3,115 340 54 1,290 --
Payments for redemptions (91,574) (17,586) (6,880) (2,013) (10,326) (8,022)
Increase in net assets from Institutional class transactions 58,443 46,297 25,056 28,271 40,128 42,321
Retail class A:
Proceeds from sales 13,106 4,213 9,822 275 2,008 463
Reinvestment of distributions 1,083 261 12 1 11 --
Payments for redemptions (4,762) (1,456) (8,599) (31) (960) (87)
Increase (decrease) in net assets from Retail class A
transactions 9,427 3,018 1,235 245 1,059 376
Retail class B:
Proceeds from sales 20,498 6,573 546 249 1,004 294
Reinvestment of distributions 685 9 8 -- 5 --
Payments for redemptions (1,808) (119) (66) (33) (150) (32)
Increase in net assets from Retail class B transactions 19,375 6,463 488 216 859 262
Increase in net assets from capital share transactions 87,245 55,778 26,779 28,732 42,046 42,959
Total increase in net assets 101,004 106,555 33,321 35,412 42,795 47,133
NET ASSETS AT BEGINNING OF PERIOD 211,130 104,575 42,370 6,958 95,582 48,449
NET ASSETS AT END OF PERIOD (2) $312,134 $211,130 $ 75,691 $ 42,370 $138,377 $ 95,582
(1)Capital share transactions:
Shares issued 8,026 4,305 2,283 2,628 4,841 5,347
Shares issued in connection with the aquisition
of Limited Volatility Stock Fund -- -- -- -- -- --
Shares issued in lieu of cash distributions 772 261 26 5 130 --
Shares redeemed (5,208) (1,227) (483) (170) (1,014) (876)
Total Institutional class transactions 3,590 3,339 1,826 2,463 3,957 4,471
Retail class A:
Shares issued 765 289 701 22 199 49
Shares issued in lieu of cash distributions 69 22 1 -- 1 --
Shares redeemed (275) (106) (605) (2) (94) (9)
Total Retail class A transactions 559 205 97 20 106 40
Retail class B:
Shares issued 1,196 441 39 21 100 31
Shares issued in lieu of cash distributions 44 1 1 -- 1 --
Shares redeemed (105) (8) (5) (3) (15) (3)
Total Retail class B transactions 1,135 434 35 18 86 28
NET INCREASE IN CAPITAL SHARES 5,284 3,978 1,958 2,501 4,149 4,539
[WIDE TABLE CONTINUED FROM ABOVE]
SCIENCES TECHNOLOGY
FUND FUND
1/31/96 10/1/95 10/1/94
to to to
9/30/96(3) 9/30/96 9/30/95
<S> <C> <C> <C>
OPERATIONS:
Investment income (loss)--net $ 29 $ (332) $ (67)
Net realized gain (loss) on investments 119 6,494 3,397
Net realized gain on futures contracts -- -- --
Net realized gain on forward foreign currency contracts
and foreign currency transactions -- -- --
Net change in unrealized appreciation (depreciation) of
investments (74) 5,242 6,007
Net change in unrealized appreciation on futures contracts -- -- --
Net change in unrealized appreciation (depreciation) on
forward foreign currency contracts, foreign currency and
translation of other
assets and liabilities in foreign currency -- -- --
Net increase in net assets resulting from operations 74 11,404 9,337
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income--net:
Institutional class (9) -- --
Retail class A -- -- --
Retail class B -- -- --
Net realized gain on investments:
Institutional class -- (3,429) (174)
Retail class A -- (179) (2)
Retail class B -- (249) --
Total distributions (9) (3,857) (176)
CAPITAL SHARE TRANSACTIONS (1):
Institutional class
Proceeds from sales 14,449 34,655 15,964
Shares issued in connection with the aquisition
of Limited Volatility Stock Fund -- -- --
Reinvestment of distributions 2 826 26
Payments for redemptions (2,008) (6,682) (1,921)
Increase in net assets from Institutional class transactions 12,443 28,799 14,069
Retail class A:
Proceeds from sales 618 11,478 1,267
Reinvestment of distributions -- 176 2
Payments for redemptions (4) (8,918) (72)
Increase (decrease) in net assets from Retail class A
transactions 614 2,736 1,197
Retail class B:
Proceeds from sales 287 2,808 1,825
Reinvestment of distributions -- 237 --
Payments for redemptions (14) (612) (39)
Increase in net assets from Retail class B transactions 273 2,433 1,786
Increase in net assets from capital share transactions 13,330 33,968 17,052
Total increase in net assets 13,395 41,515 26,213
NET ASSETS AT BEGINNING OF PERIOD -- 32,767 6,554
NET ASSETS AT END OF PERIOD (2) $ 13,395 $ 74,282 $ 32,767
(1)Capital share transactions:
Shares issued 1,478 2,102 1,158
Shares issued in connection with the aquisition
of Limited Volatility Stock Fund -- -- --
Shares issued in lieu of cash distributions -- 54 2
Shares redeemed (214) (411) (136)
Total Institutional class transactions 1,264 1,745 1,024
Retail class A:
Shares issued 64 667 79
Shares issued in lieu of cash distributions -- 12 --
Shares redeemed -- (510) (4)
Total Retail class A transactions 64 169 75
Retail class B:
Shares issued 30 167 115
Shares issued in lieu of cash distributions -- 16 --
Shares redeemed (1) (37) (2)
Total Retail class B transactions 29 146 113
NET INCREASE IN CAPITAL SHARES 1,357 2,060 1,212
(2)Includes undistributed (distribution in excess of) net investment income
(000) of $103 and $104 for Equity Income Fund, $195 and $110 for Equity Index
Fund, $1,113 and $497 for Stock Fund, $187 and $146 for Diversified Growth
Fund, $148 and $75 for Special Equity Fund, $1,177 and $317 for Regional
Equity Fund, $(3) accumulated net investment loss and $19 for Emerging Growth
Fund, $716 and $1,609 for International Fund, $20 and $0 for Health Sciences
Fund, and accumulated net investment (loss) of $(3) and $0 for Technology
Fund at September 30, 1996 and September 30, 1995, respectively.
(3)The Health Sciences Fund commenced operations on January 31, 1996.
(4)Represents a distribution in excess of net investment income due to the
tax treatment of foreign currency related transactions.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
</TABLE>
FINANCIAL HIGHLIGHTS
For the periods ended September 30, 1996
For a share outstanding throughout the period
<TABLE>
<CAPTION>
RATIO OF
RATIO OF NET EXPENSES TO
NET ASSET DIVIDENDS NET ASSET RATIO OF INVESTMENT AVERAGE
VALUE NET FROM NET VALUE NET ASSETS EXPENSES TO INCOME TO NET ASSETS
BEGINNING INVESTMENT INVESTMENT END OF TOTAL END OF AVERAGE AVERAGE (EXCLUDING
OF PERIOD INCOME INCOME PERIOD RETURN PERIOD (000) NET ASSETS NET ASSETS WAIVERS)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PRIME OBLIGATIONS
INSTITUTIONAL CLASS
1996 $1.00 $0.052 $(0.052) $1.00 5.34% $3,166,213 0.45% 5.20% 0.54%
1995 1.00 0.055 (0.055) 1.00 5.64 2,911,055 0.45 5.53 0.60
1994 1.00 0.035 (0.035) 1.00 3.56 1,307,347 0.45 3.58 0.60
1993 1.00 0.030 (0.030) 1.00 3.02 682,988 0.45 2.97 0.62
1992 1.00 0.039 (0.039) 1.00 4.02 203,765 0.45 3.90 0.59
1991 1.00 0.064 (0.064) 1.00 6.60 193,650 0.45 6.43 0.57
1990(1) 1.00 0.046 (0.046) 1.00 4.73+ 239,231 0.45 7.90 0.55
RETAIL CLASS A
1996 $1.00 $0.050 $(0.050) $1.00 5.08% $ 135,146 0.70% 4.94% 0.79%
1995(3) 1.00 0.038 (0.038) 1.00 3.84+ 96,083 0.70 5.43 0.82%
RETAIL CLASS B
1996 $1.00 $0.042 $(0.042) $1.00 4.29% $ 1,763 1.45% 4.15% 1.54%
1995(4) 1.00 0.032 (0.032) 1.00 3.28+ 14 1.45 4.70 1.57
CORPORATE TRUST CLASS
1996 $1.00 $0.051 $(0.051) $1.00 5.18% $ 109,213 0.60% 4.98% 0.69%
1995(5) 1.00 0.038 (0.038) 1.00 3.86+ 9,735 0.60 5.51 0.72
GOVERNMENT OBLIGATIONS
INSTITUTIONAL CLASS
1996 $1.00 $0.051 $(0.051) $1.00 5.24% $ 777,594 0.45% 5.10% 0.54%
1995 1.00 0.054 (0.054) 1.00 5.55 551,286 0.45 5.44 0.60
1994 1.00 0.034 (0.034) 1.00 3.48 455,869 0.45 3.61 0.61
1993 1.00 0.028 (0.028) 1.00 2.87 237,331 0.45 2.83 0.65
1992 1.00 0.038 (0.038) 1.00 3.85 93,770 0.45 3.71 0.64
1991 1.00 0.060 (0.060) 1.00 6.22 72,824 0.45 5.90 0.68
1990(1) 1.00 0.045 (0.045) 1.00 4.56+ 29,704 0.45 7.60 0.98
CORPORATE TRUST CLASS
1996 $1.00 $0.050 $(0.050) $1.00 5.08% $ 269,382 0.60% 4.96% 0.69%
1995(3) 1.00 0.038 (0.038) 1.00 3.85+ 198,859 0.60 5.45 0.70
TREASURY OBLIGATIONS
INSTITUTIONAL CLASS
1996 $1.00 $0.050 $(0.050) $1.00 5.15% $ 317,392 0.45% 5.00% 0.55%
1995(5) 1.00 0.038 (0.038) 1.00 3.83+ 117,171 0.45 5.50 0.55
CORPORATE TRUST CLASS
1996 $1.00 $0.049 $(0.049) $1.00 5.00% $1,616,130 0.60% 4.86% 0.70%
1995 1.00 0.051 (0.051) 1.00 5.22 1,038,818 0.60 5.13 0.70
1994(2) 1.00 0.031 (0.031) 1.00 3.12+ 746,090 0.58 3.19 0.68
</TABLE>
+Returns are for the period indicated and have not been annualized.
(1) Commenced operations on March 1, 1990. All ratios for the period have been
annualized.
(2) Commenced operations on October 4, 1993. All ratios for the period have been
annualized.
(3) Commenced operations on January 21, 1995. All ratios for the period have
been annualized.
(4) Commenced operations on January 23, 1995. All ratios for the period have
been annualized.
(5) Commenced operations on January 24, 1995. All ratios for the period have
been annualized.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
For the periods ended September 30, 1996
For a share outstanding throughout the period
<TABLE>
<CAPTION>
REALIZED
AND
NET ASSET UNREALIZED DIVIDENDS NET ASSET
VALUE NET GAINS OR FROM NET DISTRIBUTIONS VALUE NET ASSETS
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM END OF TOTAL END OF
OF PERIOD INCOME INVESTMENTS INCOME CAPITAL GAINS PERIOD RETURN (A) PERIOD (000)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
LIMITED TERM INCOME
INSTITUTIONAL CLASS
1996 $ 9.92 $0.58 $(0.01) $(0.58) $ -- $ 9.91 5.93% $ 93,588
1995 9.85 0.56 0.07 (0.56) -- 9.92 6.57 111,439
1994(1) 10.02 0.29 (0.17) (0.29) -- 9.85 1.24+ 70,266
RETAIL CLASS A
1996 $ 9.92 $0.58 $(0.01) $(0.58) $ -- $ 9.91 5.93% $ 7,627
1995 9.85 0.56 0.07 (0.56) -- 9.92 6.57 9,977
1994 10.06 0.44 (0.22) (0.43) -- 9.85 2.21 9,509
1993(2) 10.00 0.29 0.07 (0.30) -- 10.06 3.61+ 121,800
INTERMEDIATE TERM INCOME
INSTITUTIONAL CLASS
1996 $ 9.94 $0.55 $ -- $(0.55) $(0.01) $ 9.93 5.63% $ 98,702
1995 9.55 0.58 0.39 (0.58) -- 9.94 10.51 88,375
1994(1) 10.01 0.31 (0.46) (0.31) -- 9.55 (1.48)+ 68,445
RETAIL CLASS A
1996 $ 9.94 $0.55 $ -- $(0.55) $(0.01) $ 9.93 5.63% $ 2,213
1995 9.55 0.59 0.38 (0.58) -- 9.94 10.51 2,437
1994 10.22 0.46 (0.56) (0.46) (0.11) 9.55 (1.05) 3,208
1993(2) 10.00 0.41 0.29 (0.41) (0.07) 10.22 7.21+ 67,291
INTERMEDIATE GOVERNMENT BOND
INSTITUTIONAL CLASS
1996 $ 9.29 $0.54 $(0.11) $(0.54) $ -- $ 9.18 4.74% $140,230
1995 8.98 0.54 0.31 (0.54) -- 9.29 9.82 100,168
1994(1) 9.41 0.27 (0.43) (0.27) -- 8.98 (1.66)+ 27,776
RETAIL CLASS A
1996 $ 9.29 $0.54 $(0.10) $(0.54) $ -- $ 9.19 4.85% $ 3,320
1995 8.98 0.54 0.31 (0.54) -- 9.29 9.82 2,860
1994 9.52 0.41 (0.51) (0.39) (0.05) 8.98 (1.13) 1,977
1993 10.18 0.44 0.02 (0.44) (0.68) 9.52 4.99 3,716
1992 10.25 0.60 0.28 (0.60) (0.35) 10.18 8.88 589
1991(3) 10.01 0.65 0.24 (0.65) -- 10.25 9.13+ 1,756
1990(4) 10.05 0.75 (0.04) (0.75) -- 10.01 7.41 1,573
1989(4) 9.99 0.74 0.06 (0.74) -- 10.05 8.35 1,501
1988(4)(5) 10.03 0.58 (0.01) (0.61) -- 9.99 6.18+ 375
FIXED INCOME
INSTITUTIONAL CLASS
1996 $10.97 $0.63 $(0.11) $(0.63) $(0.10) $10.76 4.90% $391,211
1995 10.37 0.66 0.62 (0.65) (0.03) 10.97 12.86 289,816
1994(1) 11.11 0.38 (0.74) (0.38) -- 10.37 (3.23)+ 90,187
RETAIL CLASS A
1996 $10.98 $0.61 $(0.11) $(0.61) $(0.10) $10.77 4.64% $ 8,332
1995 10.37 0.66 0.61 (0.63) (0.03) 10.98 12.78 7,853
1994 11.38 0.57 (0.89) (0.57) (0.12) 10.37 (2.92) 8,028
1993 11.13 0.62 0.36 (0.61) (0.12) 11.38 9.20 53,601
1992 10.59 0.66 0.60 (0.66) (0.06) 11.13 12.34 5,645
1991(3) 10.01 0.65 0.58 (0.65) -- 10.59 12.48+ 6,045
1990(4) 10.44 0.74 (0.26) (0.74) (0.17) 10.01 5.14 2,209
1989(4) 10.13 0.74 0.31 (0.74) -- 10.44 10.93 555
1988(4)(5) 10.03 0.62 0.13 (0.65) -- 10.13 8.07+ 240
RETAIL CLASS B
1996 $10.94 $0.52 $(0.11) $(0.53) $(0.10) $10.72 3.93% $ 16,092
1995 10.35 0.58 0.60 (0.56) (0.03) 10.94 11.75 7,280
1994(6) 10.54 0.08 (0.17) (0.10) -- 10.35 (0.88)+ 115
</TABLE>
[WIDE TABLE CONTINUED FROM ABOVE]
RATIO OF RATIO OF
NET EXPENSES TO
RATIO OF INVESTMENT AVERAGE
EXPENSES TO INCOME TO NET ASSETS
AVERAGE AVERAGE (EXCLUDING PORTFOLIO
NET ASSETS NET ASSETS WAIVERS) TURNOVER RATE
LIMITED TERM INCOME
INSTITUTIONAL CLASS
1996 0.60% 5.80% 0.84% 61%
1995 0.60 5.67 0.97 120
1994(1) 0.60 4.40 1.03 48
RETAIL CLASS A
1996 0.60% 5.80% 1.09% 61%
1995 0.60 5.60 1.22 120
1994 0.60 4.17 1.23 48
1993(2) 0.60 3.61 1.27 104
INTERMEDIATE TERM INCOME
INSTITUTIONAL CLASS
1996 0.70% 5.45% 0.88% 161%
1995 0.70 5.94 0.94 69
1994(1) 0.58 4.81 1.07 177
RETAIL CLASS A
1996 0.70% 5.43% 1.13% 161%
1995 0.70 5.97 1.19 69
1994 0.69 2.48 1.24 177
1993(2) 0.70 4.90 1.29 163
INTERMEDIATE GOVERNMENT BOND
INSTITUTIONAL CLASS
1996 0.70% 5.85% 0.85% 29%
1995 0.70 6.13 0.97 17
1994(1) 0.36 5.32 1.45 74
RETAIL CLASS A
1996 0.70% 5.85% 1.10% 29%
1995 0.70 6.10 1.22 17
1994 0.53 4.49 2.14 74
1993 0.71 4.00 4.73 182
1992 0.99 6.03 14.14 101
1991(3) 0.99 6.99 6.76 100
1990(4) 1.08 7.57 5.55 40
1989(4) 1.19 7.49 9.65 72
1988(4)(5) 0.95 6.78 17.20 0
FIXED INCOME
INSTITUTIONAL CLASS
1996 0.70% 5.81% 0.87% 108%
1995 0.70 6.28 0.94 106
1994(1) 0.61 5.53 0.92 142
RETAIL CLASS A
1996 0.95% 5.55% 1.12% 108%
1995 0.86 6.14 1.19 106
1994 0.68 3.83 1.06 142
1993 0.70 5.65 1.14 91
1992 0.99 6.12 2.68 180
1991(3) 0.99 6.85 4.11 176
1990(4) 1.07 7.49 5.46 144
1989(4) 1.22 7.26 22.44 157
1988(4)(5) 0.96 7.18 20.70 93
RETAIL CLASS B
1996 1.70% 4.81% 1.87% 108%
1995 1.70 5.12 1.94 106
1994(6) 1.70 4.89 1.92 142
+Returns are for the period indicated and have not been annualized.
(A) Excluding sales charges.
(1) Institutional Class shares have been offered since February 4, 1994. All
ratios for the period have been annualized.
(2) Commenced operations on December 14, 1992. All ratios for the period have
been annualized.
(3) On September 3, 1991, the Board of Directors of FAIF approved a change in
the FAIF's fiscal year end from October 31 to September 30, effective
September 30, 1991.
All ratios for the period have been annualized.
(4) For the period ended October 31.
(5) Commenced operations on December 22, 1987. All ratios for the period have
been annualized.
(6) Retail Class B shares have been offered since August 15, 1994. All ratios
for the period have been annualized.
For the periods ended September 30, 1996
For a share outstanding throughout the period.
<TABLE>
<CAPTION>
REALIZED
AND
UNREALIZED DIVIDENDS DISTRIBUTIONS NET ASSET
NET ASSET NET GAINS OR FROM NET DISTRIBUTIONS FROM VALUE NET ASSETS
VALUE BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM RETURN END OF TOTAL END OF
OF PERIOD INCOME INVESTMENTS INCOME CAPITAL GAINS OF CAPITAL PERIOD RETURN(A) PERIOD (000)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INTERMEDIATE TAX FREE
INSTITUTIONAL CLASS
1996 $10.72 $0.46 $ 0.00 $(0.46) $(0.07) $ -- $10.65 4.35% $ 66,994
1995 10.28 0.49 0.43 (0.48) -- -- 10.72 9.15 46,025
1994(1) 10.89 0.29 (0.61) (0.29) -- -- 10.28 (2.91)+ 6,168
RETAIL CLASS A
1996 $10.72 $0.46 $ 0.01 $(0.46) $(0.07) $ -- $10.66 4.45% $ 2,618
1995 10.28 0.49 0.43 (0.48) -- -- 10.72 9.15 983
1994 10.92 0.44 (0.57) (0.44) (0.07) -- 10.28 (1.25) 1,128
1993 10.56 0.47 0.42 (0.47) (0.06) -- 10.92 8.66 2,969
1992 10.34 0.53 0.22 (0.53) -- -- 10.56 7.23 725
1991(2) 10.04 0.50 0.31 (0.50) (0.01) -- 10.34 8.15 637
1990(3) 10.08 0.56 (0.04) (0.56) -- -- 10.04 5.31 537
1989(3) 10.19 0.56 (0.11) (0.56) -- -- 10.08 4.57 491
1988(3)(4) 10.03 0.47 0.16 (0.47) -- -- 10.19 6.73+ 425
MINNESOTA INSURED INTERMEDIATE TAX FREE
INSTITUTIONAL CLASS
1996 $ 9.92 $0.45 $ 0.02 $(0.45) $(0.03) $ -- $ 9.91 4.80% $ 93,394
1995 9.59 0.45 0.33 (0.45) -- -- 9.92 8.34 61,693
1994(5) 10.00 0.25 (0.41) (0.25) -- -- 9.59 (1.58)+ 20,272
RETAIL CLASS A
1996 $ 9.92 $0.45 $ 0.02 $(0.45) $(0.03) $ -- $ 9.91 4.80% $ 3,916
1995 9.58 0.46 0.33 (0.45) -- -- 9.92 8.46 2,219
1994(5) 10.00 0.25 (0.42) (0.25) -- -- 9.58 (1.68)+ 1,508
COLORADO INTERMEDIATE TAX FREE
INSTITUTIONAL CLASS
1996 $10.51 $0.49 $(0.04) $(0.49) $(0.05) $ -- $10.42 4.39% $ 48,927
1995 10.16 0.48 0.36 (0.49) -- -- 10.51 8.47 50,071
1994(6) 10.00 0.22 0.16 (0.22) -- -- 10.16 3.76+ 7,281
RETAIL CLASS A
1996 $10.51 $0.49 $(0.04) $(0.49) $(0.05) $ -- $10.42 4.39% $ 2,861
1995 10.15 0.49 0.36 (0.49) -- -- 10.51 8.57 2,189
1994(6) 10.00 0.21 0.16 (0.22) -- -- 10.15 3.66+ 693
ASSET ALLOCATION
INSTITUTIONAL CLASS
1996 $11.72 $0.37 $ 1.03 $(0.37) $(0.41) $ -- $12.34 12.37% $ 54,781
1995 10.38 0.38 1.58 (0.37) (0.25) -- 11.72 19.75 43,210
1994(1) 10.68 0.20 (0.30) (0.20) -- -- 10.38 (0.90)+ 47,227
RETAIL CLASS A
1996 $11.73 $0.34 $ 1.03 $(0.34) $(0.41) $ -- $12.35 12.09% $ 1,841
1995 10.39 0.36 1.58 (0.35) (0.25) -- 11.73 19.51 993
1994 10.60 0.27 (0.08) (0.26) (0.14) -- 10.39 1.81 707
1993(7) 10.00 0.19 0.60 (0.19) -- -- 10.60 8.01+ 56,393
RETAIL CLASS B
1996 $11.68 $0.25 $ 1.02 $(0.25) $(0.41) $ -- $12.29 11.29% $ 2,300
1995 10.37 0.27 1.57 (0.28) (0.25) -- 11.68 18.51 571
1994(8) 10.40 0.05 (0.03) (0.05) -- -- 10.37 0.19 11
BALANCED
INSTITUTIONAL CLASS
1996 $12.13 $0.42 $ 1.43 $(0.42) $(0.41) $ -- $13.15 15.89% $332,786
1995 10.54 0.40 1.73 (0.39) (0.15) -- 12.13 20.89 192,145
1994(1) 10.86 0.25 (0.32) (0.25) -- -- 10.54 (0.64)+ 125,285
RETAIL CLASS A
1996 $12.12 $0.39 $ 1.43 $(0.39) $(0.41) $ -- $13.14 15.61% 20,927
1995 10.54 0.38 1.72 (0.37) (0.15) -- 12.12 20.57 15,288
1994 10.73 0.34 (0.02) (0.34) (0.17) -- 10.54 3.02 13,734
1993(7) 10.00 0.28 0.75 (0.28) (0.02) -- 10.73 10.39+ 111,225
RETAIL CLASS B
1996 $12.09 $0.31 $ 1.42 $(0.31) $(0.41) $ -- $13.10 14.78% $ 15,542
1995 10.53 0.29 1.71 (0.29) (0.15) -- 12.09 19.58 3,120
1994(8) 10.66 0.06 (0.12) (0.07) -- -- 10.53 (0.55)+ 270
REAL ESTATE SECURITIES FUND
INSTITUTIONAL CLASS
1996 $10.37 $0.57 $ 1.29 $(0.53) $ -- $(0.17) $11.53 18.53% $ 17,895
1995(9) 10.00 0.13 0.39 (0.11) -- (0.04) 10.37 5.19+ 5,756
RETAIL CLASS A
1996 $10.38 $0.52 $ 1.30 $(0.51) $ -- $(0.17) $11.52 18.17% $ 226
1995(10) 10.37 -- 0.01 -- -- -- 10.38 0.00 1
RETAIL CLASS B
1996 $10.37 $0.44 $ 1.27 $(0.45) $ -- $(0.17) $11.46 17.00% $ 263
1995(10) 10.37 -- -- -- -- -- 10.37 0.00 1
</TABLE>
[WIDE TABLE CONTINUED FROM ABOVE]
RATIO OF RATIO OF
NET EXPENSES TO
RATIO OF INVESTMENT AVERAGE AVERAGE
EXPENSES TO INCOME TO NET ASSETS PORTFOLIO COMMISSION
AVERAGE AVERAGE (EXCLUDING TURNOVER RATE
NET ASSETS NET ASSETS WAIVERS) RATE (B)
INTERMEDIATE TAX FREE
INSTITUTIONAL CLASS
1996 0.66% 4.35% 0.92% 53% --
1995 0.67 4.73 1.05 68 --
1994(1) 0.45 4.48 2.20 52 --
RETAIL CLASS A
1996 0.66% 4.35% 1.17% 53% --
1995 0.67 4.71 1.30 68 --
1994 0.59 4.13 2.78 52 --
1993 0.71 4.31 5.09 27 --
1992 0.99 4.83 16.09 23 --
1991(2) 0.99 5.35 15.48 15 --
1990(3) 1.08 5.58 13.85 4 --
1989(3) 1.09 5.57 19.55 4 --
1988(3)(4) 0.84 5.87 13.60 0 --
MINNESOTA INSURED INTERMEDIATE TAX FREE
INSTITUTIONAL CLASS
1996 0.70% 4.53% 0.93% 19% --
1995 0.70 4.76 1.00 38 --
1994(5) 0.67 4.57 1.59 22 --
RETAIL CLASS A
1996 0.70% 4.52% 1.18% 19% --
1995 0.70 4.74 1.25 38 --
1994(5) 0.67 4.57 1.84 22 --
COLORADO INTERMEDIATE TAX FREE
INSTITUTIONAL CLASS
1996 0.70% 4.69% 0.93% 20% --
1995 0.70 4.84 1.02 19 --
1994(6) 0.69 4.51 4.71 4 --
RETAIL CLASS A
1996 0.70% 4.69% 1.18% 20% --
1995 0.70 4.83 1.27 19 --
1994(6) 0.69 4.51 4.96 4 --
ASSET ALLOCATION
INSTITUTIONAL CLASS
1996 0.80% 3.08% 1.03% 57% $0.0409
1995 0.79 3.53 1.01 87 --
1994(1) 0.75 2.91 1.12 32 --
RETAIL CLASS A
1996 1.05% 2.84% 1.28% 57% $0.0409
1995 0.99 3.29 1.26 87 --
1994 0.75 2.01 1.29 32 --
1993(7) 0.75 2.40 1.34 31 --
RETAIL CLASS B
1996 1.80% 2.12% 2.03% 57% $0.0409
1995 1.79 2.35 2.01 87 --
1994(8) 1.75 1.94 2.12 32 --
BALANCED
INSTITUTIONAL CLASS
1996 0.80% 3.31% 0.89% 73% $0.0619
1995 0.79 3.61 0.94 77 --
1994(1) 0.75 3.51 1.05 98 --
RETAIL CLASS A
1996 1.05% 3.05% 1.14% 73% $0.0619
1995 0.99 3.41 1.19 77 --
1994 0.77 2.63 1.24 98 --
1993(7) 0.75 3.31 1.29 77 --
RETAIL CLASS B
1996 1.80% 2.32% 1.89% 73% $0.0619
1995 1.79 2.60 1.94 77 --
1994(8) 1.75 2.80 2.05 98 --
REAL ESTATE SECURITIES FUND
INSTITUTIONAL CLASS
1996 0.80% 5.13% 1.51% 8% $0.0704
1995(9) 0.80 6.01 2.34 0 --
RETAIL CLASS A
1996 1.05% 4.36% 1.76% 8% $0.0704
1995(10) 1.05 0.00 2.59 0 --
RETAIL CLASS B
1996 1.80% 4.29% 2.51% 8% $0.0704
1995(10) 1.80 0.00 3.34 0 --
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
For the periods ended September 30,
For a share outstanding throughout the period
<TABLE>
<CAPTION>
REALIZED
AND
NET ASSET UNREALIZED DIVIDENDS NET ASSET
VALUE NET GAINS OR FROM NET DISTRIBUTIONS VALUE NET ASSETS
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM END OF TOTAL END OF
OF PERIOD INCOME INVESTMENTS INCOME CAPITAL GAINS PERIOD RETURN (A) PERIOD (000)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
EQUITY INCOME
INSTITUTIONAL CLASS
1996 $11.24 $0.42 $ 1.43 $(0.42) $(0.01) $12.66 16.79% $ 64,590
1995 9.89 0.41 1.35 (0.41) -- 11.24 18.24 52,126
1994(11) 9.90 0.07 (0.03) (0.05) -- 9.89 0.45+ 17,489
RETAIL CLASS A
1996 $11.24 $0.39 $ 1.42 $(0.39) $(0.01) $12.65 16.41% $ 2,581
1995 9.89 0.41 1.33 (0.39) -- 11.24 18.06 1,995
1994(12) 9.87 0.41 -- (0.39) -- 9.89 4.22+ 1,852
1993(13)(14) 10.00 0.57 (0.14) (0.56) -- 9.87 4.44+ 28,786
RETAIL CLASS B
1996 $11.20 $0.31 $ 1.42 $(0.31) $(0.01) $12.61 15.66% $ 3,770
1995 9.88 0.33 1.32 (0.33) -- 11.20 17.10 1,233
1994(8) 9.87 0.04 0.02 (0.05) -- 9.88 0.57+ 1
EQUITY INDEX
INSTITUTIONAL CLASS
1996 $13.34 $0.31 $ 2.31 $(0.31) $(0.18) $15.47 19.98% $348,539
1995 10.67 0.28 2.75 (0.27) (0.09) 13.34 29.17 218,932
1994(1) 10.85 0.20 (0.18) (0.20) -- 10.67 0.18+ 163,688
RETAIL CLASS A
1996 $13.35 $0.27 $ 2.32 $(0.27) $(0.18) $15.49 19.75% $ 6,221
1995 10.68 0.25 2.76 (0.25) (0.09) 13.35 28.90 2,140
1994 10.60 0.25 0.09 (0.25) (0.01) 10.68 3.25 758
1993(7) 10.00 0.20 0.60 (0.20) -- 10.60 8.02+ 139,957
RETAIL CLASS B
1996 $13.30 $0.17 $ 2.31 $(0.17) $(0.18) $15.43 18.95% $ 8,252
1995 10.66 0.23 2.68 (0.18) (0.09) 13.30 27.87 1,197
1994(8) 10.68 0.01 0.04 (0.07) -- 10.66 0.48+ 29
STOCK
INSTITUTIONAL CLASS
1996 $19.56 $0.42 $ 4.09 $(0.42) $(1.05) $22.60 24.32% $471,206
1995 16.50 0.36 3.64 (0.35) (0.59) 19.56 25.50 312,559
1994(1) 16.47 0.25 0.03 (0.25) -- 16.50 1.70+ 154,949
RETAIL CLASS A
1996 $19.57 $0.36 $ 4.07 $(0.36) $(1.05) $22.59 23.90% $ 22,965
1995 16.51 0.33 3.64 (0.32) (0.59) 19.57 25.26 13,076
1994 16.00 0.31 1.00 (0.30) (0.50) 16.51 8.35 8,421
1993 14.04 0.22 1.99 (0.23) (0.02) 16.00 15.82 134,186
1992 13.62 0.24 0.81 (0.29) (0.34) 14.04 7.88 3,644
1991(2) 10.64 0.28 2.95 (0.22) (0.03) 13.62 30.49+ 2,386
1990(3) 12.09 0.25 (1.17) (0.25) (0.28) 10.64 (8.22) 1,161
1989(3) 10.35 0.25 1.70 (0.20) (0.01) 12.09 20.33 323
1988(3)(4) 10.03 0.27 0.35 (0.30) -- 10.35 6.40+ 206
RETAIL CLASS B
1996 $19.49 $0.22 $ 4.06 $(0.22) $(1.05) $22.50 23.08% $ 23,316
1995 16.49 0.26 3.55 (0.22) (0.59) 19.49 24.20 7,051
1994(8) 16.65 0.03 (0.10) (0.09) -- 16.49 (0.43)+ 346
DIVERSIFIED GROWTH
INSTITUTIONAL CLASS
1996 $11.78 $0.18 $ 1.88 $(0.18) $ -- $13.66 17.58% $225,900
1995 9.10 0.17 2.67 (0.16) -- $11.78 31.57 132,854
1994(11) 8.92 0.03 0.18 (0.03) -- 9.10 2.36+ 31,875
RETAIL CLASS A
1996 $11.75 $0.15 $ 1.88 $(0.15) $ -- $13.63 17.38% $ 5,318
1995 9.09 0.15 2.66 (0.15) -- 11.75 31.21 2,710
1994(12) 9.39 0.10 (0.29) (0.11) -- 9.09 (2.07)+ 1,900
1993(13)(14) 10.00 0.11 (0.63) (0.09) -- 9.39 (5.18)+ 31,084
RETAIL CLASS B
1996 $11.73 $0.08 $ 1.84 $(0.08) $ -- $13.57 16.41% $ 5,775
1995 9.09 0.09 2.65 (0.10) -- $11.73 30.29 819
1994(8) 8.87 0.01 0.23 (0.02) -- 9.09 2.75+ 12
</TABLE>
[WIDE TABLE CONTINUED FROM ABOVE]
<TABLE>
<CAPTION>
RATIO OF RATIO OF
NET EXPENSES TO
RATIO OF INVESTMENT AVERAGE AVERAGE
EXPENSES TO INCOME TO NET ASSETS PORTFOLIO COMMISSION
AVERAGE AVERAGE (EXCLUDING TURNOVER RATE
NET ASSETS NET ASSETS WAIVERS) RATE (B)
<S> <C> <C> <C> <C> <C>
EQUITY INCOME
INSTITUTIONAL CLASS
1996 0.75% 3.50% 0.95% 23% $0.0700
1995 0.75 4.11 1.06 23 --
1994(11) 0.75 5.61 1.14 108 --
RETAIL CLASS A
1996 1.00% 3.25% 1.20% 23% $0.0700
1995 0.92 3.91 1.31 23 --
1994(12) 0.88 4.88 1.39 108 --
1993(13)(14) 0.75 6.09 1.36 68 --
RETAIL CLASS B
1996 1.75% 2.49% 1.95% 23% $0.0700
1995 1.75 3.05 2.06 23 --
1994(8) 1.75 4.39 2.14 108 --
EQUITY INDEX
INSTITUTIONAL CLASS
1996 0.35% 2.14% 0.90% 10% $0.0377
1995 0.35 2.41 0.95 9 --
1994(1) 0.35 2.59 1.03 11 --
RETAIL CLASS A
1996 0.60% 1.87% 1.15% 10% $0.0377
1995 0.57 2.16 1.20 9 --
1994 0.35 2.23 1.23 11 --
1993(7) 0.35 2.52 1.30 1 --
RETAIL CLASS B
1996 1.35% 1.11% 1.90% 10% $0.0377
1995 1.35 1.34 1.95 9 --
1994(8) 1.35 1.68 2.03 11 --
STOCK
INSTITUTIONAL CLASS
1996 0.80% 1.90% 0.88% 40% $0.0653
1995 0.79 2.10 0.94 52 --
1994(1) 0.75 2.28 1.01 65 --
RETAIL CLASS A
1996 1.05% 1.64% 1.13% 40% $0.0653
1995 1.00 1.89 1.19 52 --
1994 0.76 1.51 1.20 65 --
1993 0.75 1.94 1.28 48 --
1992 1.45 1.75 4.46 39 --
1991(2) 1.45 2.47 7.42 76 --
1990(3) 1.45 2.24 9.47 41 --
1989(3) 1.24 2.26 36.39 74 --
1988(3)(4) 1.02 2.67 28.60 80 --
RETAIL CLASS B
1996 1.80% 0.89% 1.88% 40% $0.0653
1995 1.79 1.10 1.94 52 --
1994(8) 1.75 1.58 2.01 65 --
DIVERSIFIED GROWTH
INSTITUTIONAL CLASS
1996 0.79% 1.39% 0.92% 21% $0.0593
1995 0.75 1.69 1.01 28 --
1994(11) 0.75 2.37 1.08 101 --
RETAIL CLASS A
1996 1.04% 1.13% 1.17% 21% $0.0593
1995 0.92 1.52 1.26 28 --
1994(12) 0.90 1.15 1.33 101 --
1993(13)(14) 0.78 1.26 1.25 5 --
RETAIL CLASS B
1996 1.79% 0.36% 1.92% 21% $0.0593
1995 1.75 0.58 2.01 28 --
1994(8) 1.75 1.20 2.08 101 --
</TABLE>
+Returns are for the period indicated and have not been annualized.
(A) Excluding sales charges.
(B) Beginning in 1996, average commision rate paid per share is disclosed for
all applicable security purchases and sales subject to commissions. The
comparability of this information may be affected by the fact that
commission rates per share vary significantly among foreign countries.
(1) Institutional Class shares have been offered since February 4, 1994. All
ratios for the period have been annualized.
(2) On September 3, 1991, the Board of Directors of FAIF approved a change in
the FAIF's fiscal year end from October 31 to September 30, effective
September 30, 1991.
All ratios for the period have been annualized.
(3) For the period ended October 31.
(4) Commenced operations on December 22, 1987. All ratios for the period have
been annualized.
(5) Commenced operations on February 28, 1993. All ratios for the period have
been annualized.
(6) Commenced operations on April 4, 1993. All ratios for the period have been
annualized.
(7) Commenced operations on December 14, 1992. All ratios for the period have
been annualized.
(8) Retail Class B shares have been offered since August 15, 1994. All ratios
for the period have been annualized.
(9) Commenced operations on June 30, 1996. All ratios for the period have been
annualized.
(10)Commenced operations on September 29, 1995. All ratios for the period have
been annualized.
(11)Institutional Class shares have been offered since August 2, 1994. All
ratios for the period have been annualized.
(12)On April 28, 1994 the Board of Directors of FAMF approved a change in the
FAMF's fiscal year end from November 30 to September 30, effective September
30, 1994.
On April 28, 1994, shareholders of the fund approved a change in the advisor
from Boulevard National Bank to First Bank N.A. All ratios for the period
have been annualized.
(13)For the period ended November 30.
(14)Commenced operations on December 18, 1992. All ratios for the period have
been annualized.
For the period ended September 30, 1996
For a share outstanding throughout the period
<TABLE>
<CAPTION>
REALIZED
AND
NET ASSET NET UNREALIZED DIVIDENDS NET ASSET
VALUE INVESTMENT GAINS OR FROM NET DISTRIBUTIONS VALUE NET ASSETS
BEGINNING INCOME (LOSSES) ON INVESTMENT FROM END OF TOTAL END OF
OF PERIOD (LOSS) INVESTMENTS INCOME CAPITAL GAINS PERIOD RETURN (A) PERIOD (000)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SPECIAL EQUITY
INSTITUTIONAL CLASS
1996 $17.89 $ 0.25 $ 3.95 $(0.24) $(1.42) $20.43 25.61% $247,828
1995 17.30 0.38 1.61 (0.38) (1.02) 17.89 12.84 201,786
1994(1) 16.34 0.22 0.96 (0.22) -- 17.30 7.31+ 128,806
RETAIL CLASS A
1996 $17.89 $ 0.20 $ 3.94 $(0.20) $(1.42) $20.41 25.23% $ 17,987
1995 17.30 0.35 1.60 (0.34) (1.02) 17.89 12.63 11,609
1994 15.81 0.28 2.52 (0.28) (1.03) 17.30 18.70 7,333
1993 13.61 0.23 2.32 (0.25) (0.10) 15.81 18.91 81,899
1992 12.98 0.21 1.61 (0.27) (0.92) 13.61 15.17 3,586
1991(2) 10.33 0.30 2.61 (0.26) -- 12.98 28.38+ 3,423
1990(3) 12.96 0.47 (2.03) (0.46) (0.61) 10.33 (13.24) 2,761
1989(3) 11.55 0.47 1.39 (0.41) (0.04) 12.96 17.41 2,000
1988(3)(4) 10.03 0.34 1.57 (0.39) -- 11.55 19.56+ 578
RETAIL CLASS B
1996 $17.83 $ 0.09 $ 3.91 $(0.10) $(1.42) $20.31 24.35% $ 12,847
1995 17.29 0.29 1.51 (0.24) (1.02) 17.83 11.64 4,847
1994(5) 16.51 0.01 0.85 (0.08) -- 17.29 5.22+ 370
REGIONAL EQUITY
INSTITUTIONAL CLASS
1996 $17.13 $ 0.09 $ 1.70 $(0.06) $(1.11) $17.75 11.27% $259,138
1995 12.52 0.11 4.90 (0.08) (0.32) 17.13 41.40 188,583
1994(1) 12.41 0.07 0.11 (0.07) -- 12.52 1.46+ 96,045
RETAIL CLASS A
1996 $17.12 $ 0.04 $ 1.70 $(0.04) $(1.11) $17.71 10.97% $ 25,325
1995 12.52 0.08 4.90 (0.06) (0.32) 17.12 41.17 14,917
1994 11.96 0.08 0.71 (0.07) (0.16) 12.52 6.76 8,345
1993(6) 10.00 0.05 1.96 (0.05) -- 11.96 20.17+ 58,427
RETAIL CLASS B
1996 $16.99 $(0.04) $ 1.64 $(0.01) $(1.11) $17.47 10.14% $ 27,671
1995 12.50 0.04 4.80 (0.03) (0.32) 16.99 39.98 7,630
1994(5) 12.19 -- 0.33 (0.02) -- 12.50 2.73+ 185
EMERGING GROWTH
INSTITUTIONAL CLASS
1996 $13.41 $(0.03) $ 1.77 $(0.01) $(0.35) $14.79 13.39% $ 73,025
1995 10.56 0.03 2.99 (0.02) (0.15) 13.41 29.16 41,716
1994(7) 10.00 0.01 0.56 (0.01) -- 10.56 5.68+ 6,849
RETAIL CLASS A
1996 $13.40 $(0.06) $ 1.78 $ -- $(0.35) $14.77 13.21% $ 1,867
1995 10.57 0.01 2.99 (0.02) (0.15) 13.40 28.82 386
1994(7) 10.00 0.01 0.57 (0.01) -- 10.57 5.88+ 91
RETAIL CLASS B
1996 $13.29 $(0.12) $ 1.71 $ -- $(0.35) $14.53 12.32% $ 799
1995 10.55 (0.03) 2.92 -- (0.15) 13.29 27.89 268
1994(5) 9.89 (0.01) 0.67 -- -- 10.55 6.67+ 18
INTERNATIONAL
INSTITUTIONAL CLASS
1996 $10.30 $(0.01) $ 0.22 $(0.20)(C) $ -- $10.31 2.11% $135,238
1995 10.22 0.01 0.07 -- -- 10.30 0.78 94,400
1994(7) 10.00 (0.01) 0.23 -- -- 10.22 2.20+ 47,963
RETAIL CLASS A
1996 $10.28 $(0.02) $ 0.20 $(0.18)(C) $ -- $10.28 1.84% $ 1,964
1995 10.21 -- 0.07 -- -- 10.28 0.69 876
1994(8) 9.98 (0.01) 0.24 -- -- 10.21 2.30+ 464
RETAIL CLASS B
1996 $10.20 $(0.07) $ 0.17 $(0.16)(C) $ -- $10.14 1.02% $ 1,175
1995 10.21 (0.03) 0.02 -- -- 10.20 (0.10) 306
1994(5) 10.23 (0.01) (0.01) -- -- 10.21 (0.20)+ 22
HEALTH SCIENCES FUND
INSTITUTIONAL CLASS
1996(9) $10.00 $ 0.03 $(0.15) $(0.01) $ -- $ 9.87 (1.20)%+ $ 12,485
RETAIL CLASS A
1996(9) 10.00 $ 0.01 $(0.14) $(0.01) $ -- $ 9.86 (1.32)%+ $ 629
RETAIL CLASS B
1996(9) 10.00 $(0.02) $(0.16) $(0.01) $ -- $ 9.81 (1.86)%+ $ 281
</TABLE>
[WIDE TABLE CONTINUED FROM ABOVE]
RATIO OF RATIO OF
NET EXPENSES TO
RATIO OF INVESTMENT AVERAGE AVERAGE
EXPENSES TO INCOME/LOSS NET ASSETS PORTFOLIO COMMISSION
AVERAGE TO AVERAGE (EXCLUDING TURNOVER RATE
NET ASSETS NET ASSETS WAIVERS) RATE (B)
SPECIAL EQUITY
INSTITUTIONAL CLASS
1996 0.88% 1.35% 0.88% 143% $0.0673
1995 0.88 2.30 0.95 72 --
1994(1) 0.79 1.93 1.03 116 --
RETAIL CLASS A
1996 1.13% 1.06% 1.13% 143% $0.0673
1995 1.09 2.08 1.20 72 --
1994 0.81 1.88 1.23 116 --
1993 0.81 2.07 1.31 104 --
1992 1.50 1.61 4.18 146 --
1991(2) 1.50 2.60 5.13 116 --
1990(3) 1.50 4.09 4.21 113 --
1989(3) 1.38 4.07 8.68 102 --
1988(3)(4) 1.20 4.02 15.60 51 --
RETAIL CLASS B
1996 1.88% 0.25% 1.88% 143% $0.0673
1995 1.88 1.22 1.95 72 --
1994(5) 1.68 0.47 2.03 116 --
REGIONAL EQUITY
INSTITUTIONAL CLASS
1996 0.88% 0.49% 0.90% 36% $0.0697
1995 0.84 0.78 0.95 42 --
1994(1) 0.80 0.82 1.05 41 --
RETAIL CLASS A
1996 1.13% 0.24% 1.15% 36% $0.0697
1995 1.05 0.58 1.20 42 --
1994 0.82 0.59 1.25 41 --
1993(6) 0.80 0.59 1.30 28 --
RETAIL CLASS B
1996 1.88% (0.52)% 1.90% 36% $0.0697
1995 1.84 (0.25) 1.95 42 --
1994(5) 1.80 (0.41) 2.05 41 --
EMERGING GROWTH
INSTITUTIONAL CLASS
1996 0.89% (0.24)% 0.96% 39% $0.0700
1995 0.84 0.20 1.19 51 --
1994(7) 0.80 0.23 2.59 19 --
RETAIL CLASS A
1996 1.14% (0.52)% 1.21% 39% $0.0700
1995 1.04 0.00 1.44 51 --
1994(7) 0.79 0.23 2.84 19 --
RETAIL CLASS B
1996 1.89% (1.26)% 1.96% 39% $0.0700
1995 1.84 (0.83) 2.19 51 --
1994(5) 1.80 (0.85) 3.59 19 --
INTERNATIONAL
INSTITUTIONAL CLASS
1996 1.72% (0.06)% 1.72% 100% $0.0345
1995 1.74 0.12 1.81 57 --
1994(7) 1.75 (0.19) 2.05 16 --
RETAIL CLASS A
1996 1.97% (0.28)% 1.97% 100% $0.0345
1995 1.93 (0.13) 2.06 57 --
1994(8) 1.75 (0.26) 2.30 16 --
RETAIL CLASS B
1996 2.72% (0.96)% 2.72% 100% $0.0345
1995 2.76 (0.95) 2.81 57 --
1994(5) 2.75 (0.71) 3.05 16 --
HEALTH SCIENCES FUND
INSTITUTIONAL CLASS
1996(9) 0.90% 0.43% 1.87% 19% $0.0700
RETAIL CLASS A
1996(9) 1.15% 0.18% 2.12% 19% $0.0700
RETAIL CLASS B
1996(9) 1.90% (0.61)% 2.87% 19% $0.0700
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
For the period ended September 30, 1996
For a share outstanding throughout the period
<TABLE>
<CAPTION>
REALIZED
AND
NET ASSET NET UNREALIZED DIVIDENDS NET ASSET RATIO OF
VALUE INVESTMENT GAINS OR FROM NET DISTRIBUTIONS VALUE NET ASSETS EXPENSES TO
BEGINNING INCOME (LOSSES) ON INVESTMENT FROM END OF TOTAL END OF AVERAGE
OF PERIOD (LOSS) INVESTMENTS INCOME CAPITAL GAINS PERIOD RETURN (A) PERIOD (000) NET ASSETS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TECHNOLOGY
INSTITUTIONAL CLASS
1996 $18.24 $(0.04) $2.98 $ -- $(1.89) $19.29 18.85% $64,602 0.90%
1995 11.19 (0.03) 7.31 -- (0.23) 18.24 66.22 29,272 0.88
1994(7) 10.00 (0.01) 1.20 -- -- 11.19 11.90+ 6,491 0.80
RETAIL CLASS A
1996 $18.24 $(0.05) $2.95 $ -- $(1.89) $19.25 18.60% $ 4,799 1.15%
1995 11.19 (0.03) 7.31 -- (0.23) 18.24 66.22 1,464 1.13
1994(7) 10.00 (0.01) 1.20 -- -- 11.19 11.90+ 61 0.80
RETAIL CLASS B
1996 $18.02 $(0.14) $2.86 $ -- $(1.89) $18.85 17.75% $4,881 1.90%
1995 11.17 (0.04) 7.12 -- (0.23) 18.02 64.52 2,031 1.88
1994(5) 9.85 (0.02) 1.34 -- -- 11.17 13.40+ 2 1.80
</TABLE>
[WIDE TABLE CONTINUED FROM ABOVE]
RATIO OF RATIO OF
NET EXPENSES TO
INVESTMENT AVERAGE AVERAGE
INCOME/LOSS NET ASSETS PORTFOLIO COMMISSION
TO AVERAGE (EXCLUDING TURNOVER RATE
NET ASSETS WAIVERS) RATE (B)
TECHNOLOGY
INSTITUTIONAL CLASS
1996 (0.60)% 1.01% 119% $0.0700
1995 (0.35) 1.30 74 --
1994(7) (0.21) 3.12 43 --
RETAIL CLASS A
1996 (0.85)% 1.26% 119% $0.0700
1995 (0.61) 1.55 74 --
1994(7) (0.21) 3.37 43 --
RETAIL CLASS B
1996 (1.60)% 2.01% 119% $0.0700
1995 (1.41) 2.30 74 --
1994(5) (1.44) 4.12 43 --
+Returns are for the period indicated and have not been annualized.
(A) Excluding sales charges.
(B) Beginning in 1996, average commission rate paid per share is disclosed for
all applicable security purchases and sales subject to commissions. The
comparability of this information may be affected by the fact that
commission rates per share vary significantly among foreign countries.
(C) Represents a distribution in excess of net investment income due to the tax
treatment of foreign currency related transactions.
(1) Institutional Class shares have been offered since February 4, 1994. All
ratios for the period have been annualized.
(2) On September 3, 1991, the Board of Directors of FAIF approved a change in
the FAIF's fiscal year end from October 31 to September 30, effective
September 30, 1991. All ratios for the period have been annualized.
(3) For the period ended October 31.
(4) Commenced operations on December 22, 1987. All ratios for the period have
been annualized.
(5) Retail Class B shares have been offered since August 15, 1994. All ratios
for the period have been annualized.
(6) Commenced operations on December 14, 1992. All ratios for the period have
been annualized.
(7) Commenced operations on April 4, 1994. All ratios for the period have been
annualized.
(8) Retail Class A shares have been offered since April 7, 1994. All ratios for
the period have been annualized.
(9) Commenced operations on January 31, 1996. All ratios for the period have
been annualized.
NOTES TO FINANCIAL STATEMENTS - SEPTEMBER 30, 1996
1 ORGANIZATION
The First American Prime Obligations Fund, Government Obligations Fund and
Treasury Obligations Fund are funds offered by First American Funds, Inc. (FAF).
The First American Limited Term Income Fund, Intermediate Term Income Fund,
Intermediate Government Bond Fund, Fixed Income Fund, Intermediate Tax Free
Fund, Minnesota Insured Intermediate Tax Free Fund, Colorado Intermediate Tax
Free Fund, Asset Allocation Fund, Balanced Fund, Real Estate Securities Fund,
Equity Income Fund, Equity Index Fund, Stock Fund, Diversified Growth Fund,
Special Equity Fund, Regional Equity Fund, Emerging Growth Fund, International
Fund, Health Sciences Fund, and Technology Fund are funds offered by First
American Investment Funds, Inc. (FAIF). FAF and FAIF (collectively the "Funds")
are registered under the Investment Company Act of 1940, as amended, as open
end, management investment companies. The Funds' articles of incorporation
permit the Board of Directors to create additional funds in the future.
FAF offers Class A, Class B, Class C and Class D shares. Class B shares are only
available pursuant to an exchange for Class B shares of another fund in the
First American family. Class B shares may also be subject to a contingent
deferred sales charge for six years and automatically convert to Class A shares
after eight years. Class C and D shares are offered only to qualifying
institutional investors. Class A and B shares are not offered by the Government
Obligations Fund or Treasury Obligations Fund.
FAIF offers Class A, Class B and Class C shares. Class A shares are sold with a
front-end sales charge. Class B shares may be subject to a contingent deferred
sales charge for six years and automatically convert to Class A shares after
eight years. Class C shares have no sales charge and are offered only to
qualifying institutional investors.
The Funds' prospectus provides a description of each Fund's investment
objectives, policies and strategies. All classes of shares in FAF and FAIF have
identical voting, dividend, liquidation and other rights, and the same terms and
conditions, except that the level of distribution fees charged may differ among
classes.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies followed by the Funds are as follows:
SECURITY VALUATION--Investment securities held by the FAF Funds are stated at
amortized cost which approximates market value. Under the amortized cost method,
any discount or premium is amortized ratably to the maturity of the security and
is included in interest income.
FAIF Fund investments in equity securities which are traded on a national
securities exchange (or reported on the NASDAQ national market system) are
stated at the last quoted sales price if readily available for such equity
securities on each business day; other equity securities traded in the
over-the-counter market and listed equity securities for which no sale was
reported on that date are stated at the last quoted bid price. Debt obligations
exceeding sixty days to maturity which are actively traded are valued by an
independent pricing service at the most recently quoted bid price. When market
quotations are not readily available, securities are valued at fair value as
determined in good faith by procedures established and approved by the Board of
Directors. Debt obligations with sixty days or less remaining until maturity may
be valued at their amortized cost. Foreign securities are valued based upon
quotation from the primary market in which they are traded.
SECURITY TRANSACTIONS AND INVESTMENT INCOME--The Funds record security
transactions on the trade date of the security purchase or sale. Dividend income
is recorded on the ex-dividend date. Interest income, including amortization of
bond premium and discount is recorded on the accrual basis. Security gains and
losses are determined on the basis of identified cost, which is the same basis
used for Federal income tax purposes.
DISTRIBUTIONS TO SHAREHOLDERS--Distributions from net investment income for the
FAF funds are declared on a daily basis and are payable on the first business
day of the following month.
Limited Term Income Fund, Intermediate Term Income Fund, Intermediate Government
Bond Fund, Fixed Income Fund, Intermediate Tax Free Fund, Minnesota Insured
Intermediate Tax Free Fund, Colorado Intermediate Tax Free Fund, Asset
Allocation Fund, Balanced Fund, Equity Income Fund, Equity Index Fund, Stock
Fund, Diversified Growth Fund and Special Equity Fund declare and pay income
dividends monthly. Real Estate Securities Fund, Regional Equity Fund, Emerging
Growth Fund, Health Sciences Fund and Technology Fund declare and pay income
dividends quarterly.
A portion of the quarterly distributions of the Real Estate Securities Fund
may be a return of capital. International Fund declares and pays dividends
annually. Any net realized capital gains on sales of securities for a fund
are distributed to shareholders at least annually.
FEDERAL TAXES--It is each Fund's intention to continue to qualify as a regulated
investment company and distribute all of its taxable income. Accordingly, no
provision for Federal income taxes is required. For Federal income tax purposes,
required distributions related to realized gains from security transactions are
computed as of October 31st.
The amounts of distributions from net investment income and net realized capital
gains are determined in accordance with federal income tax regulations, which
may differ from those amounts determined under generally accepted accounting
principles. These book/tax differences are either temporary or permanent in
nature. These differences are primarily due to wash sales, foreign currency
gains and losses, the "market-to-market" of certain Passive Foreign Investment
Companies (PFICs) for tax purposes, the character of distributions made during
the year from net investment income or net realized gains, and the timing of
distributions where the fiscal year in which the amounts are distributed may
differ from the year that the income or realized gains (losses) were recorded by
the fund. In the Regional Equity Fund, a permanent difference resulted from a
redemption-in-kind in the amount of $53,590,714 of which the resulting realized
gains was recognized for book purposes but not for tax purposes. To the extent
these differences are permanent, adjustments are made to the appropriate
accounts in the period that the difference arises.
On the Statement of Net Assets the following adjustments were made (000):
ACCUMULATED UNDISTRIBUTED
NET REALIZED NET INVESTMENT
GAIN (LOSS) INCOME PAID-IN-CAPITAL
------------ -------------- ---------------
PRIME OBLIGATIONS FUND $ (9) $ 9 $ --
Government Obligations
Fund (35) 35 --
Limited Term Income
Fund 9 4 (13)
Intermediate Government
Bond Fund 1 1 (2)
Asset Allocation Fund (74) 74 --
Balanced Fund (317) 316 1
Equity Income Fund -- 12 (12)
Stock Fund (580) 580 --
Diversified Growth Fund -- 12 (12)
Special Equity Fund (15) 15 --
Regional Equity Fund (13,263) 12 13,251
Emerging Growth Fund -- 147 (147)
International Fund (1,286) 1,219 67
Technology Fund (329) 329 --
FUTURES TRANSACTIONS--In order to gain exposure to or protect against changes in
the market, certain Funds may enter into S&P Stock Index futures contracts and
other stock futures contracts.
Upon entering into a futures contract, the Fund is required to deposit cash or
pledge "U.S." Government securities in an amount equal to five percent of the
purchase price indicated in the futures contract (initial margin). Subsequent
payments, which are dependent on the daily fluctuations in the value of the
underlying security or securities, are made or received by the Fund each day
(daily variation margin) and are recorded as unrealized gains or losses until
the contracts are closed. When the contracts are closed, the Fund records a
realized gain or loss equal to the difference between the proceeds from (or cost
of) the closing transaction and the Fund's basis in the contracts. Risks of
entering into futures contracts, in general, include the possibility that there
will not be a perfect price correlation between the futures contracts and the
underlying securities. Second, it is possible that a lack of liquidity for
futures contracts could exist in the secondary market, resulting in an inability
to close a futures position prior to its maturity date. Third, the purchase of a
futures contract involves the risk that a Fund could lose more than the original
margin deposit required to initiate a futures transaction. Unrealized gains or
losses on outstanding positions in futures contracts held at the close of the
year will be recognized as capital gains or losses for Federal income tax
purposes.
REPURCHASE AGREEMENTS--The Funds may enter into repurchase agreements with
member banks of the Federal Deposit Insurance Corporation or registered broker
dealers whom the Adviser or Sub-Adviser deems creditworthy under guidelines
approved by the Board of Directors, subject to the seller's agreement to
repurchase such securities at a mutually agreed upon date and price. The
repurchase price would generally equal the price paid by the Fund plus interest
negotiated on the basis of current short-term rates.
Securities pledged as collateral for repurchase agreements are held by the
custodian bank until the respective agreements mature. The Portfolios may also
invest in tri-party repurchase agreements. Securities held as collateral
for tri-party repurchase agreements are maintained in a segregated account by
the broker's custodian bank until the maturity of the repurchase agreement.
Provisions of the repurchase agreements ensure that the market value of the
collateral, including accrued interest thereon, is sufficient in the event of
default of the counterparty. If the counterparty defaults and the value of the
collateral declines or if the counterparty enters an insolvency proceeding,
realization of the collateral by the Funds may be delayed or limited.
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS--Delivery and payment for securities
which have been purchased by a Fund on a forward commitment or when-issued basis
can take place up to a month or more after the transaction date. During this
period, such securities are subject to market fluctuations and the portfolio
maintains, in a segregated account with its custodian, assets with a market
value equal to or greater than the amount of its purchase commitments.
FOREIGN CURRENCY TRANSLATION--The books and records of the International Fund
are maintained in U.S. dollars on the following bases:
(I) market value of investment securities, assets and liabilities at the
current rate of exchange; and
(II) purchases and sales of investment securities, income and expenses at the
relevant rates of exchange prevailing on the respective dates of such
transactions.
The International Fund does not isolate that portion of gains and losses on
investments in equity securities which is due to changes in the foreign exchange
rates from that which is due to change in market prices of equity securities.
The International Fund reports certain foreign currency related transactions as
components of realized gains for financial reporting purposes, whereas such
components are treated as ordinary income for Federal income tax purposes.
FORWARD FOREIGN CURRENCY CONTRACTS--The International Fund enters into forward
foreign currency contracts as hedges against either specific transactions or
fund positions. The aggregate principal amount of the contracts are not recorded
as the International Fund intends to settle the contracts prior to delivery. All
commitments are "marked-to-market" daily at the applicable foreign exchange rate
and any resulting unrealized gains or losses are recorded currently. The
International Fund realizes gains or losses at the time the forward contracts
are extinguished. Unrealized gains or losses on outstanding positions in forward
foreign currency contracts held at the close of the year will be recognized as
ordinary income or loss for Federal income tax purposes.
EXPENSES--Expenses that are directly related to one of the Funds are charged
directly to that Fund. Other operating expenses are prorated to the Funds on the
basis of relative net asset value. Class specific expenses, such as the 12b-1
fees, are borne by that class. Income, other expenses and realized and
unrealized gains and losses of a Fund are allocated to the respective class on
the basis of the relative net asset value each day.
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS--The preparation of
financial statements, in conformity with generally accepted accounting
principles, requires management to make estimates and assumptions that affect
the reported amount of net assets and liabilities and disclosure of contingent
assets at the date of the financial statements and the reported results of
operations during the reporting period. Actual results could differ from those
estimates.
3 FEES AND EXPENSES
Pursuant to an investment advisory agreement (the Agreement), First Bank
National Association (the Adviser) manages each Fund's assets and furnishes
related office facilities, equipment, research and personnel. The Agreement
requires each Fund to pay the Adviser a monthly fee based upon average daily net
assets. The fee for each of the FAF Funds is equal to an annual rate of .40% of
the average daily net assets. The fee for each of the FAIF Funds, other than the
International Fund, is equal to an annual rate of .70% of the average daily net
assets. Marvin & Palmer Associates, Inc., serves as Sub-Adviser to the
International Fund pursuant to a Sub-Advisory Agreement with the Adviser. The
fee for the International Fund is equal to an annual rate of 1.25% of average
daily net assets.
FAIF Funds may invest in FAF Funds, subject to certain limitations. The terms of
such transactions are identical to those of non-related entities except that, to
avoid duplicative investment advisory fees, the Adviser remits to each FAIF Fund
an amount equal to the investment advisory fee earned by FAF related to such
investments.
Through a separate contractual agreement, First Trust National Association, an
affiliate of the Adviser, serves as the Funds' custodian. In the Statement of
Operations, expenses paid indirectly represent a reduction of custodian fees for
earnings on cash balances.
SEI Financial Services Company (SFS) and SEI Financial Management Corporation,
(SFM) serve as distributor and administrator of the Funds, respectively. Under
the distribution plan, each of the Funds pay SFS a monthly distribution fee of
.25% of each Fund's average daily net assets of the Retail Class A shares, 1.00%
of the Retail Class B shares and .15% of the Corporate Trust Class D shares,
which may be used by SFS to provide compensation for sales support and
distribution activities. No distribution fees are paid by Institutional Class C
shares. SFM provides administrative services, including certain accounting,
legal and shareholder services, at an annual rate of .07% of each FAF Fund's,
and .12% of each FAIF Fund's, average daily net assets, with a minimum annual
fee of $50,000 per Fund. To the extent that the aggregate net assets of FAF and
FAIF exceed $8 billion, the annual rate of each FAF fund is reduced to .055% and
each FAIF fund is reduced to .105%.
In addition to the investment advisory and management fees, custodian fees,
distribution fees, administrator and transfer agent fees, each fund is
responsible for paying most other operating expenses including organization
costs, fees and expenses of outside directors, registration fees, printing
shareholder reports, legal, auditing, insurance and other miscellaneous
expenses.
During the period ended September 30, 1996, the Adviser and other parties waived
a portion of their contractual fees in order to assist the Funds in maintaining
competitive expense ratios. Expenses were waived as follows (000):
Waiver of
Investment Waiver of
Advisory Distribution
Fees Fees (1)
PRIME OBLIGATIONS FUND $2,427 $ -
Government Obligations
Fund 815 -
Treasury Obligations
Fund 1,565 -
Limited Term Income
Fund 278 20
Intermediate Term
Income Fund 182 6
Intermediate Government
Bond Fund 220 8
Fixed Income Fund 640 -
Intermediate Tax Free
Fund 152 4
Minnesota Insured
Intermediate Tax Free
Fund 184 8
Colorado Intermediate
Tax
Free Fund 119 6
Asset Allocation Fund 128 -
Balanced Fund 255 -
Real Estate Securities
Fund 84 -
Equity Income Fund 131 -
Equity Index Fund 1,582 -
Stock Fund 364 -
Diversified Growth Fund 255 -
Special Equity Fund - -
Regional Equity Fund 57 -
Emerging Growth Fund 40 -
International Fund - -
Health Sciences Fund 68 -
Technology Fund 54 -
(1)Retail Class A
For the period ended September 30, 1996, legal fees and expenses were paid to a
law firm of which the Secretary of the Funds is a partner.
DST Systems, Inc. provides transfer agent services for the Funds.
A Contingent Deferred Sales Charge (CDSC) is imposed on redemptions made in the
Retail Class B. The CDSC varies depending on the number of years from time of
payment for the purchase of Class B shares until the redemption of such shares.
Contingent Deferred Sales Charge
as a Percentage of Dollar
Year Since Purchase Amount Subject To Charge
FIRST 5.00%
Second 5.00%
Third 4.00%
Fourth 3.00%
Fifth 2.00%
Sixth 1.00%
Seventh 0.00%
Eighth 0.00%
For the period ended September 30, 1996, sales charges retained by SFS for
distributing the Funds' shares were approximately $122,800.
4 INVESTMENT SECURITY TRANSACTIONS
During the period ended September 30, 1996, purchases of securities and proceeds
from sales of securities, other than temporary investments in short-term
securities, were as follows (000):
U.S. Government Other Investment
Securities Securities
------------------- --------------------
PURCHASES SALES PURCHASES SALES
LIMITED TERM
INCOME FUND $ 3,116 $ 5,010 $ 40,496 $ 70,711
Intermediate Term
Income Fund 152,014 134,437 3,223 8,240
Intermediate
Government
Bond Fund 33,229 74,456 -- --
Fixed Income Fund 401,686 320,540 55,444 38,359
Intermediate Tax
Free Fund -- -- 48,238 27,958
Minnesota Insured
Intermediate Tax
Free Fund -- -- 45,608 13,902
Colorado
Intermediate Tax
Free Fund -- -- 9,083 10,106
Asset Allocation
Fund 14,794 5,081 12,436 15,001
Balanced Fund 159,782 107,153 120,854 69,442
Real Estate
Securities Fund -- -- 11,712 948
Equity Income Fund -- -- 19,315 13,342
Equity Index Fund -- -- 127,662 26,738
Stock Fund 148,288 248,124
Diversified Growth
Fund -- -- 111,302 35,269
Special Equity
Fund -- -- 332,585 287,984
Regional Equity
Fund -- -- 142,893 89,698
Emerging Growth
Fund -- -- 44,024 21,222
International Fund -- -- 142,196 109,583
Health Sciences
Fund -- -- 14,181 1,668
Technology Fund -- -- 89,801 57,811
At September 30, 1996 the total cost of securities for Federal income tax
purposes, was not materially different from amounts reported for financial
reporting purposes. The aggregate gross unrealized appreciation and depreciation
for securities held by the Funds at September 30, 1996 is as follows (000):
Aggregate Aggregate
Gross Gross
Appreciation Depreciation Net
Limited Term Income Fund $ 270 $ (205) $ 65
Intermediate Term Income
Fund 328 (718) (390)
Intermediate Government
Bond Fund 2,060 (261) 1,799
Fixed Income Fund 2,938 (4,837) (1,899)
Intermediate Tax Free Fund 852 (167) 685
Minnesota Insured
Intermediate Tax Free Fund 2,154 (206) 1,948
Colorado Intermediate
Tax Free Fund 1,566 (63) 1,503
Asset Allocation Fund 6,035 (736) 5,299
Balanced Fund 41,908 (3,105) 38,803
Real Estate Securities Fund 1,759 (58) 1,701
Equity Income Fund 12,169 (710) 11,459
Equity Index Fund 89,994 (7,715) 82,279
Stock Fund 103,022 (3,453) 99,569
Diversified Growth Fund 50,065 (4,383) 45,682
Special Equity Fund 32,629 (11,593) 21,036
Regional Equity Fund 64,658 (11,414) 53,244
Emerging Growth Fund 16,333 (5,598) 10,735
International Fund 12,801 (3,879) 8,922
Health Sciences Fund 1,202 (1,276) (74)
Technology Fund 16,736 (4,756) 11,980
As of September 30, 1996 the following funds have capital loss carryforwards
(000):
Expiration
Amount Date
GOVERNMENT OBLIGATIONS FUND $ 31 2003
Treasury Obligations Fund 6 2005
Limited Term Income Fund* 4,087 2001-2005
Intermediate Government Bond Fund 53 2002-2003
International Fund 4,420 2003-2004
*Includes carryover acquired in connection with Managed Income merger, the
ability to utilize these losses to offset gains may be limited in future years.
The Treasury Obligations Fund and Limited Term Income Fund capital loss
carryforward amounts include $6,000 and $100,000, respectively, of net capital
losses incurred from November 1, 1995 to September 30, 1996. As permitted by tax
regulations, the Funds' intend to elect to defer and treat these losses as
arising in the fiscal year ending September 30, 1997.
5 DEFERRED ORGANIZATIONAL COSTS
Organizational costs have been capitalized by the Funds and are being amortized
over sixty months commencing with operations on a straight-line basis.
6 FORWARD FOREIGN CURRENCY CONTRACTS
The International Fund enters into forward foreign currency exchange contracts
as hedges against portfolio positions. Such contracts, which protect the value
of the Fund's investment securities against a decline in the value of the hedged
currency, do not eliminate fluctuations in the underlying prices of the
securities. They simply establish an exchange rate at a future date. Also,
although such contracts tend to minimize the risk of loss due to a decline in
the value of a hedged currency, at the same time they tend to limit any
potential gain that might be realized should the value of such foreign currency
increase.
<TABLE>
<CAPTION>
The following forward foreign currency contracts were outstanding at September
30, 1996.
International Fund
-----------------------------------------------------------------
Net
In Unrealized
Contracts to Exchange Appreciation/
Settlement Deliver For (Depreciation)
Dates (000) (000) (000)
Foreign Currency
<S> <C> <C> <C> <C> <C>
Sales 10/31/96 CH 8,940 $ 7,255 $ 103
10/31/96 DM 10,920 7,234 67
10/31/96 FF 23,460 4,550 (1)
10/31/96 FI 1,090 239 -
10/31/96 IT 3,100,300 2,026 (6)
10/31/96 JY 2,231,500 20,372 286
10/31/96 NG 10,560 6,239 57
10/31/96 NK 4,430 684 2
10/31/96 SK 28,670 4,289 (39)
10/31/96 SP 158,020 1,234 5
-------- ------
$ 54,122 $ 474
======== ======
</TABLE>
Currency Legend
CH Swiss Frank
DM German Mark
FF French Franc
FI Finnish Mark
IT Italian Lira
JY Japanese Yen
NG Netherlands Guilder
NK Norwegian Kroner
SK Swedish Krona
SP Spanish Peseta
7 CONCENTRATION OF CREDIT RISK
The Intermediate Tax Free Fund, Minnesota Insured Intermediate Tax Free Fund and
Colorado Intermediate Tax Free Fund invest in debt instruments of municipal
issuers. Although these Funds monitor investment concentration, the issuers'
ability to meet their obligations may be affected by economic developments in a
specific state or region.
The Intermediate Tax Free Fund, Minnesota Insured Intermediate Tax Free Fund,
and Colorado Intermediate Tax Free Fund invest in securities which include
revenue bonds, tax and revenue anticipation notes, and general obligation bonds.
At September 30, 1996, the percentage of portfolio investments by each revenue
source was as follows:
Minnesota
Insured
Intermediate Intermediate Colorado
Tax Free Tax Free Intermediate
Fund Fund Tax Free Fund
Revenue Bonds:
Education Bonds 12% 4% 4%
Health Care Bonds 12 12 1
Transportation
Bonds 3 3 7
Utility Bonds 11 9 10
Housing Bonds 4 21 5
Pollution Control
Bonds 6 4 4
Public Facility
Bonds 5 2 2
Industrial Bonds 1 2 1
Other 19 14 11
General
Obligations: 26 26 55
Anticipation
Notes: 1 3 -
---- ---- ----
100% 100% 100%
==== ==== ====
The rating of long-term debt as a percentage of total value of investments at
September 30, 1996 is as follows:
Minnesota
Insured
Intermediate Intermediate Colorado
Tax Free Tax Free Intermediate
Fund Fund Tax Free Fund
Standard &
Poors/Moody's:
Ratings:
AAA/Aaa 64% 77% 48%
AA/Aa 29 8 32
A/A 6 12 17
BBB/Baa 1 - 1
NR - 3 2
---- ---- ----
100% 100% 100%
==== ==== ====
Securities rated by only one agency are shown in that category. Securities rated
by both agencies are shown with their highest rating.
8 FUND MERGERS
On January 26, 1996 Stock Fund acquired all net assets of Limited Volatility
Stock Fund pursuant to a plan of reorganization approved by the FAIF
shareholders on January 22, 1996. The acquisition was accompanied by a tax-free
exchange of 1,445,879 shares of Limited Volatility Stock Fund Institutional
Class for 917,421 shares of Stock Fund Institutional Class outstanding as of the
close of business on January 26, 1996. Limited Volatility Stock Fund net assets
at that date were combined with those of Stock Fund's. The aggregate net assets
of Stock Fund and Limited Volatility Stock Fund before the acquisition were
$372,522,635 and $17,976,532 (including $37,244 of accumulated net realized loss
on investments, $3,597,192 of net unrealized appreciation of investments, and
14,416,584 of paid-in-capital for Institutional Class) respectively, resulting
in combined net assets of $390,499,167 on January 26, 1996.
The following information is included as it impacts the prior year's Statements
of Changes in Net Assets. Five different mutual funds existed as separate series
of FAF: Money Fund, Institutional Money Fund, CT Government Fund, Institutional
Government Fund and CT Treasury Fund. On December 16, 1994, FAF shareholders
approved a plan of reorganization. Effective January 20, 1995, Money Fund was
merged with and into Institutional Money Fund and the combined entity is now the
Prime Obligations Fund. Also effective on such date, CT Government Fund was
merged with and into Institutional Government Fund and the combined entity is
now the Government Obligations Fund. In addition, the name of CT Treasury Fund
was changed to Treasury Obligations Fund. The mergers were accompanied by a
tax-free exchange of 63,816,319 shares of Money Fund for 63,816,319 shares of
Prime Obligations Retail Class A and an exchange of 156,260,107 shares of CT
Government Fund for 156,260,107 shares of Government Obligations Corporate Trust
Class as of the close of business on January 20, 1995. The aggregate net assets
of Prime Obligations Fund and Money Fund before the acquisition were
$1,498,492,068 and $63,816,316, respectively, resulting in combined net assets
of $1,562,308,384 on January 20, 1995, and the aggregate net assets of
Government Obligations Fund and CT Government Fund before the acquisition were
$602,905,803 and $156,260,107, respectively, resulting in combined net assets of
$759,165,910 on January 20, 1995.
On February 3, 1995 Limited Term Income Fund acquired all net assets of First
American Mutual Fund (FAMF) Managed Income Fund pursuant to a plan of
reorganization approved by the FAMF shareholders on December 16, 1994. The
acquisition was accompanied by a tax-free exchange of 4,045,016 shares of
Managed Income Fund Institutional Class for 3,916,789 shares of Limited Term
Income Fund Institutional Class, and 482,125 shares of Managed Income Fund
Retail Class A for 467,560 shares of Limited Term Income Fund Retail Class A
outstanding as of the close of business on February 3, 1995. Managed Income Fund
net assets at the date were combined with those of Limited Term Income Fund. The
aggregate net assets of Limited Term Income Fund and Managed Income Fund before
the acquisition were $77,167,375 and $42,915,945 (including $2,579,628 of
accumulated net realized loss on investments, $1,131,202 of net unrealized
depreciation of investments, and $41,584,512 of paid-in capital for
Institutional Class, and $5,042,263 of paid-in capital for Retail Class A),
respectively, resulting in combined net assets of $120,083,320 on February 3,
1995.
NOTICE TO SHAREHOLDERS UNAUDITED
THE INFORMATION SET FORTH BELOW IS FOR THE FUND'S FISCAL YEAR AS REQUIRED BY
FEDERAL LAW. SHAREHOLDERS, HOWEVER, MUST REPORT DISTRIBUTIONS ON A CALANDAR YEAR
BASIS FOR INCOME TAX PURPOSES WHICH MAY INCLUDE DISTRIBUTIONS FOR PORTIONS OF
TWO FISCAL OF THE FUND. ACCORDINGLY, THE INFORMATION NEEDED BY SHAREHOLDERS FOR
INCOME TAX PURPOSES WILL BE SENT TO THEM IN EARLY 1997. PLEASE CONSULT YOUR TAX
ADVISER FOR PROPER TREATMENT OF THIS INFORMATION.
Dear First American Fund Shareholders:
For the fiscal year ended September 30, 1996, each fund is designated long
term capital gains and exempt income with regard to distributions paid during
the year as follows:
<TABLE>
<CAPTION>
(A) (B) (C)
LONG TERM CAPITAL GAINS ORDINARY INCOME TOTAL DISTRIBUTIONS
FUND DISTRIBUTIONS (TAX BASIS) DISTRIBUTIONS (TAX BASIS) (TAX BASIS)
<S> <C> <C> <C>
Prime Obligations 0% 100% 100%
Government Obligations 0% 100% 100%
Treasury Obligations 0% 100% 100%
Limited Term Income 0% 100% 100%
Intermediate Term Income 2% 98% 100%
Intermediate Government Bond 0% 100% 100%
Fixed Income 0% 100% 100%
Intermediate Tax Free 0% 100% 100%
Minnesota Insured Intermediate
Tax Free 1% 99% 100%
Colorado Intermediate Tax Free 0% 100% 100%
Asset Allocation 49% 51% 100%
Balanced 37% 63% 100%
Equity Income 2% 98% 100%
Equity Index 27% 73% 100%
Stock 56% 44% 100%
Diversified Growth 0% 100% 100%
Special Equity 54% 46% 100%
Regional Equity 45% 55% 100%
Emerging Growth 49% 51% 100%
International 0% 100% 100%
Health Sciences 0% 100% 100%
Technology 21% 79% 100%
</TABLE>
[TABLE CONTINUED FROM ABOVE]
(D) (E)
QUALIFYING TAX EXEMPT
FUND DIVIDENDS (1) INTEREST
PRIME OBLIGATIONS 0% 0%
Government Obligations 0% 0%
Treasury Obligations 0% 0%
Limited Term Income 0% 0%
Intermediate Term Income 0% 0%
Intermediate Government Bond 0% 0%
Fixed Income 0% 0%
Intermediate Tax Free 0% 100%
Minnesota Insured Intermediate
Tax Free 0% 100%
Colorado Intermediate Tax Free 0% 99%
Asset Allocation 31% 0%
Balanced 22% 0%
Equity Income 77% 0%
Equity Index 77% 0%
Stock 37% 0%
Diversified Growth 100% 0%
Special Equity 20% 0%
Regional Equity 6% 0%
Emerging Growth 5% 0%
International 0% 0%
Health Sciences 22% 0%
Technology 0% 0%
*Items (A) and (B) are based on a percentage of the fund's total distributions.
**Items (D) and (E) are based on a percentage of ordinary income distribution of
the portfolio.
(1)Qualifying dividends represent dividends which qualify for the corporate
dividends received deduction.
(2)Real Estate Securities Fund is not shown due to the fact that the
dividends tax year end is December 31st.
FOR TAXPAYERS FILING ON A CALENDAR YEAR BASIS, THIS NOTICE IS FOR INFORMATIONAL
PURPOSES ONLY.
Dear First American International Fund Shareholder:
The following is important information regarding foreign tax credits.
The First American International Fund has made an election under Section 853
of the Internal Revenue Code to pass through the benefit of foreign tax credits
to its shareholders. The information provided below is pertinent to taxpayers
who meet the following criteria:
1) File a U.S. Federal Income Tax Return on the basis of fiscal year ended
September 30, 1996, and
2) Held shares of the Fund on the dividend record date of December 21,
1995.
The amount per share of income from and foreign taxes paid to each country is
listed in the following schedule:
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS RETAIL CLASS A RETAIL CLASS B
GROSS FOREIGN GROSS FOREIGN GROSS FOREIGN
COUNTRY DIVIDEND TAXES PAID DIVIDEND TAXES PAID DIVIDEND TAXES PAID
<S> <C> <C> <C> <C> <C> <C>
ARGENTINA 0.0046 0.0000 0.0042 0.0000 0.0037 0.0000
Australia 0.0037 0.0004 0.0034 0.0004 0.0030 0.0004
Chile 0.0011 0.0001 0.0010 0.0001 0.0009 0.0001
Colombia 0.0003 0.0000 0.0003 0.0000 0.0002 0.0000
Finland 0.0058 0.0006 0.0054 0.0006 0.0048 0.0006
France 0.0033 0.0001 0.0030 0.0001 0.0026 0.0001
Germany 0.0082 0.0004 0.0076 0.0004 0.0067 0.0004
Hong Kong 0.0251 0.0000 0.0230 0.0000 0.0201 0.0000
India 0.0012 0.0001 0.0011 0.0001 0.0010 0.0001
Indonesia 0.0010 0.0001 0.0009 0.0001 0.0008 0.0001
Israel 0.0002 0.0000 0.0002 0.0000 0.0002 0.0000
Italy 0.0037 0.0003 0.0035 0.0003 0.0031 0.0003
Japan 0.0230 0.0023 0.0212 0.0023 0.0188 0.0023
Luxembourg 0.0007 0.0000 0.0006 0.0000 0.0005 0.0000
Malaysia 0.0054 0.0008 0.0051 0.0008 0.0045 0.0008
Mexico 0.0037 0.0000 0.0033 0.0000 0.0029 0.0000
Netherlands 0.0037 0.0004 0.0034 0.0004 0.0030 0.0004
New Zealand 0.0005 0.0000 0.0005 0.0000 0.0004 0.0000
Norway 0.0010 0.0001 0.0010 0.0001 0.0009 0.0001
Peru 0.0019 0.0000 0.0017 0.0000 0.0015 0.0000
Philippines 0.0006 0.0001 0.0006 0.0001 0.0005 0.0001
Singapore 0.0095 0.0012 0.0088 0.0012 0.0079 0.0012
South Korea 0.0037 0.0000 0.0034 0.0000 0.0030 0.0000
Spain 0.0010 0.0000 0.0009 0.0000 0.0008 0.0000
Sweden 0.0077 0.0007 0.0071 0.0007 0.0063 0.0007
Switzerland 0.0041 0.0004 0.0038 0.0004 0.0033 0.0004
Taiwan 0.0083 0.0000 0.0076 0.0000 0.0067 0.0000
Thailand 0.0023 0.0002 0.0021 0.0002 0.0018 0.0002
United Kingdom 0.0293 0.0026 0.0271 0.0026 0.0239 0.0026
United States 0.0447 0.0000 0.0410 0.0000 0.0358 0.0000
------ ------ ------ ------ ------ ------
0.2093 0.0109 0.1928 0.0109 0.1696 0.0109
</TABLE>
Please consult your tax adviser for proper treatment of this information.
FIRST AMERICAN FUNDS, INC.
FIRST AMERICAN INVESTMENT FUNDS, INC.
680 East Swedesford Road
Wayne, Pennsylvania 19087
INVESTMENT ADVISER
FIRST BANK NATIONAL ASSOCIATION
601 Second Avenue South
Minneapolis, Minnesota 55480
CUSTODIAN
FIRST TRUST NATIONAL ASSOCIATION
180 East Fifth Street
St. Paul, Minnesota 55101
ADMINISTRATOR
SEI FINANCIAL MANAGEMENT CORPORATION
680 East Swedesford Road
Wayne, Pennsylvania 19087
TRANSFER AGENT
DST SYSTEMS, INC.
210 West Tenth Street
Seventh Floor Tower
Kansas City, Missouri 64105
DISTRIBUTOR
SEI FINANCIAL SERVICES COMPANY
680 East Swedesford Road
Wayne, Pennsylvania 19087
INDEPENDENT AUDITORS
KPMG PEAT MARWICK LLP
90 South Seventh Street
Minneapolis, Minnesota 55402
COUNSEL
DORSEY & WHITNEY LLP
220 South Sixth Street
Minneapolis, Minnesota 55402
This report and the financial statements contained herein are submitted for the
general information of the shareholders of the corporation. The report is not
authorized for distribution to prospective investors in the corporation unless
preceded or accompanied by an effective prospectus for each of the Funds
included. Shares in the Funds are not deposits or obligations of, or guaranteed
or endorsed by, First Bank National Association or any of its affiliates. Such
shares are also not federally insured by the Federal Deposit Insurance
Corporation, the Federal Reserve Board, or any other agency. Investment in the
shares involve investment risk including loss of principal amount
invested.
