FIRST AMERICAN FUNDS, INC.
FIRST AMERICAN INVESTMENT FUNDS, INC.
SEMI-ANNUAL REPORT
March 31, 1996
[LOGO] FIRST AMERICAN FUNDS
The power of disciplined investing
TABLE OF CONTENTS
MESSAGE FROM YOUR CHAIRMAN 1
ECONOMIC AND INVESTMENT REVIEW 2
STATEMENTS OF NET ASSETS 4
STATEMENTS OF ASSETS AND LIABILITIES 57
STATEMENTS OF OPERATIONS 59
STATEMENTS OF CHANGES IN NET ASSETS 65
FINANCIAL HIGHLIGHTS 70
NOTES TO FINANCIAL STATEMENTS 75
MESSAGE FROM YOUR CHAIRMAN MARCH 31, 1996
Dear Shareholders:
On behalf of the Board of Directors of the First American family of funds I
am pleased to report that the past six months have been a period of solid
growth and investment performance. Net assets under management continued to
grow and surpassed $7.9 billion as of March 31, 1996. The investment results
of First Asset Management, our Investment Advisor, have remained solid as the
majority of our funds with at least one year of performance history have
posted returns that exceed their category average. I would urge you to read
the Economic and Investment Review provided by First Asset Management in this
report.
Within the past six months, seven or more of our funds have reached their
three-year anniversary. All told, 13 of our 23 funds now have at least three
years of investment history and by mid-year 1997, 21 of our 23 funds should
be in this position.
The First American Health Sciences Fund was launched on January 31, 1996. The
Health Sciences Fund pursues an objective of long-term growth of capital
through investments in equity securities of companies principally engaged in
the development, production, or distribution of products or services
connected with health care or medicine. Market analysts expect the health
care industry's long-term prospects to remain strong as the continued growth
in the number of Americans age 65 and over will continue to fuel health care
spending. For more information concerning the Health Sciences Fund, including
a prospectus with charges and expenses, please visit your financial advisor
or call our Investor Services Department at 1-800-637-2548. Please read the
prospectus carefully before investing. The Health Sciences Fund continues the
history of product innovation and investment expertise you have come to
expect from our fund family.
Finally, the Board of Directors thanks you for your continued support and
confidence.
Sincerely,
/s/ Joseph D. Strauss
Joseph D. Strauss
Chairman
First American Funds
First American Investment Funds
ECONOMIC AND INVESTMENT REVIEW MARCH 31, 1996
Dear Fellow Shareholders:
Economic expansions seldom progress in an orderly, straight-line fashion. The
first half of the First American Funds' fiscal year clearly bore out this
observation. During the fall and winter months, economic growth felt the
impact of consumer caution, in large part a function of job insecurity and
growing debt burdens. Ongoing efforts to reduce inventory levels at all
stages of economic activity and the continuing drag of reduced federal
government spending further curtailed economic growth. Strikes at Boeing and
General Motors, budget-induced federal government shutdowns, and brutal
winter weather also contributed to slower growth and distorted economic
statistics into unusual patterns that sponsored active discussion of the
probability of a recession in the immediate future. Slow economic growth and
low inflation were reflected in falling bond yields and further monetary
policy ease by the Federal Reserve. Long treasury bond yields declined below
6.00% in early January from 6.50% at the beginning of the First American
Funds' fiscal year.
In February, the economy began to display signs that the long running
expansion was still intact and interest rates began to rise. Healthy job
creation during the first quarter and a strong bounce back in retail sales
activity were among the clearest indicators that economic activity would
remain vital. Rising agricultural commodity and energy prices added to the
discomfort of bond investors, although the dollar's strength supported the
prospect of a low inflation environment. Today, long treasury bond yields
have risen above 7.00%. Predictably, economists have turned to discussions of
excessive economic growth, the threat of inflation, and tighter monetary
policy.
TREASURY YIELDS
[LINE GRAPH]
Line graph depicting the yields of the 30 year Treasury Bonds and 3 month
Treasury Bills
Graph Plot Points:
Treasury
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 10.50 7.08
Aug-85 10.56 7.13
Sep-85 10.61 7.10
Oct-85 10.50 7.16
Nov-85 10.06 7.24
Dec-85 9.54 7.10
Jan-86 9.40 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 7.70 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 6.40
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 5.70
Apr-88 8.95 5.91
May-88 9.23 6.26
Jun-88 9.00 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 7.90
Sep-89 8.15 7.75
Oct-89 8.00 7.64
Nov-89 7.90 7.69
Dec-89 7.90 7.63
Jan-90 8.26 7.64
Feb-90 8.50 7.74
Mar-90 8.56 7.90
Apr-90 8.76 7.77
May-90 8.73 7.74
Jun-90 8.46 7.73
Jul-90 8.50 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 7.70 4.07
Jan-92 7.58 3.80
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 7.60 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 3.00
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 6.00 2.95
Oct-93 5.94 3.02
Nov-93 6.21 3.10
Dec-93 6.25 3.06
Jan-94 6.29 2.98
Feb-94 6.49 3.25
Mar-94 6.91 3.50
Apr-94 7.27 3.68
May-94 7.41 4.14
Jun-94 7.40 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 5.60
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 5.40
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 5.00
Feb-96 6.24 4.83
Mar-96 6.60 4.96
Apr-96 6.79 4.95
Source: Federal Reserve Board/Haver Analytics
Interestingly enough, through January, the stock market seemed singularly
unimpressed by the gloomy economic outlook. The S&P 500 rose almost 9.0%
during the first four months of the Funds' fiscal year and by the end of
January stood at 636. Falling interest rates, positive earnings comparisons,
and an extraordinary flow of new mutual fund subscriptions combined to drive
the stock market ahead. Rising interest rates over the past two months have
served only to stall, but not reverse, the market's advance.
S&P 500 STOCK INDEX
[LINE GRAPH]
Line graph depicting the composite value of the S&P 500 Stock Index
Graph plot points:
S&P 500
index
Dec-84 164.48
Jan-85 171.61
Feb-85 180.88
Mar-85 179.42
Apr-85 180.62
May-85 184.90
Jun-85 188.89
Jul-85 192.54
Aug-85 188.31
Sep-85 184.06
Oct-85 186.18
Nov-85 197.45
Dec-85 207.26
Jan-86 208.08
Feb-86 219.37
Mar-86 232.33
Apr-86 237.97
May-86 238.46
Jun-86 245.30
Jul-86 240.18
Aug-86 245.00
Sep-86 238.27
Oct-86 237.49
Nov-86 245.09
Dec-86 248.61
Jan-87 264.51
Feb-87 280.93
Mar-87 292.47
Apr-87 289.32
May-87 289.12
Jun-87 301.38
Jul-87 310.09
Aug-87 329.36
Sep-87 318.66
Oct-87 280.16
Nov-87 245.01
Dec-87 240.96
Jan-88 250.48
Feb-88 258.13
Mar-88 265.74
Apr-88 262.61
May-88 256.12
Jun-88 270.68
Jul-88 269.05
Aug-88 263.73
Sep-88 267.97
Oct-88 277.40
Nov-88 271.02
Dec-88 276.51
Jan-89 285.41
Feb-89 294.01
Mar-89 292.71
Apr-89 302.25
May-89 313.93
Jun-89 323.73
Jul-89 331.92
Aug-89 346.61
Sep-89 347.33
Oct-89 347.40
Nov-89 340.22
Dec-89 348.57
Jan-90 339.97
Feb-90 330.45
Mar-90 338.47
Apr-90 338.18
May-90 350.25
Jun-90 360.39
Jul-90 360.03
Aug-90 330.61
Sep-90 315.41
Oct-90 307.12
Nov-90 315.29
Dec-90 328.75
Jan-91 325.49
Feb-91 362.26
Mar-91 372.28
Apr-91 379.68
May-91 377.99
Jun-91 378.29
Jul-91 380.23
Aug-91 389.40
Sep-91 387.20
Oct-91 386.88
Nov-91 385.92
Dec-91 388.51
Jan-92 416.08
Feb-92 412.56
Mar-92 407.36
Apr-92 407.41
May-92 414.81
Jun-92 408.27
Jul-92 415.05
Aug-92 417.93
Sep-92 418.48
Oct-92 412.50
Nov-92 422.84
Dec-92 435.64
Jan-93 435.23
Feb-93 441.70
Mar-93 450.16
Apr-93 443.08
May-93 445.25
Jun-93 448.06
Jul-93 447.29
Aug-93 454.13
Sep-93 459.24
Oct-93 463.90
Nov-93 462.89
Dec-93 465.95
Jan-94 472.99
Feb-94 471.58
Mar-94 463.81
Apr-94 447.23
May-94 450.90
Jun-94 454.83
Jul-94 451.40
Aug-94 464.24
Sep-94 466.96
Oct-94 463.81
Nov-94 461.01
Dec-94 455.19
Jan-95 465.25
Feb-95 481.92
Mar-95 493.15
Apr-95 507.91
May-95 523.81
Jun-95 539.35
Jul-95 557.37
Aug-95 559.11
Sep-95 578.77
Oct-95 582.92
Nov-95 595.53
Dec-95 614.57
Jan-96 614.42
Feb-96 649.54
Mar-96 647.07
Apr-96 646.09
Source: Haver Analytics
Looking ahead, the investment position of the First American Funds reflects a
forecast of moderate economic growth and a bit higher inflation as the year
progresses. The economy should grow at a trend rate of 2.2% in 1996 as higher
interest rates temper economic activity in the second half after a consumer
and capital goods based surge in the first two quarters. Longer term, we
foresee sustained economic growth and moderate inflation. Continued growth in
employment and personal income, an improving trade balance, and limited
inflation, wage inflation in particular, are critical factors supporting this
expectation.
REAL GROSS DOMESTIC PRODUCT
[BAR CHART]
Bar chart depicting the Real Gross Domestic Product on a seasonally adjusted
annual rate
Graph plot points:
Real GDP
q/q y/y
Dec-86 2.2 2.4
Mar-87 2.5 1.8
Jun-87 4.0 2.7
Sep-87 3.6 3.1
Dec-87 6.0 4.0
Mar-88 2.4 4.0
Jun-88 4.1 4.0
Sep-88 2.4 3.7
Dec-88 5.1 3.5
Mar-89 4.0 3.9
Jun-89 3.0 3.6
Sep-89 2.2 3.6
Dec-89 0.4 2.4
Mar-90 4.1 2.4
Jun-90 1.3 2.0
Sep-90 -1.9 1.0
Dec-90 -4.1 -0.2
Mar-91 -2.2 -1.7
Jun-91 1.7 -1.6
Sep-91 1.0 -0.9
Dec-91 1.0 0.4
Mar-92 4.7 2.1
Jun-92 2.5 2.3
Sep-92 3.0 2.8
Dec-92 4.3 3.7
Mar-93 0.0 2.5
Jun-93 1.7 2.2
Sep-93 2.3 2.1
Dec-93 4.7 2.2
Mar-94 2.5 2.8
Jun-94 4.8 3.6
Sep-94 3.6 3.9
Dec-94 3.2 3.5
Mar-95 0.6 3.0
Jun-95 0.5 1.9
Sep-95 3.6 1.9
Dec-95 0.5 1.3
Mar-96 2.8 1.8
Jun-96 3.0 2.5
Sep-96 2.3 2.2
Dec-96 2.3 2.6
Source: Dept. of Commerce/Haver Analytics
CONSUMER PRICES
[BAR CHART]
Bar chart depicting the quarterly change of the Consumer Price Index on a
seasonally adjusted annual rate
Graph plot points;
CPI
q/q y/y
Dec-86 2.8 1.3
Mar-87 5.3 2.1
Jun-87 4.6 3.8
Sep-87 4.3 4.3
Dec-87 3.8 4.5
Mar-88 3.0 3.9
Jun-88 4.7 3.9
Sep-88 5.0 4.1
Dec-88 4.6 4.3
Mar-89 4.6 4.7
Jun-89 6.5 5.2
Sep-89 3.3 4.7
Dec-89 4.0 4.6
Mar-90 7.1 5.2
Jun-90 4.1 4.6
Sep-90 7.1 5.6
Dec-90 7.0 6.3
Mar-91 3.0 5.3
Jun-91 2.4 4.8
Sep-91 3.1 3.8
Dec-91 3.4 3.0
Mar-92 2.6 2.9
Jun-92 3.3 3.1
Sep-92 3.0 3.1
Dec-92 3.5 3.1
Mar-93 2.9 3.2
Jun-93 2.9 3.1
Sep-93 1.9 2.8
Dec-93 3.2 2.7
Mar-94 2.0 2.5
Jun-94 2.6 2.4
Sep-94 3.8 2.9
Dec-94 2.3 2.6
Mar-95 2.9 2.9
Jun-95 3.4 3.1
Sep-95 2.0 2.6
Dec-95 2.4 2.7
Mar-96 3.2 2.8
Jun-96 3.4 2.8
Sep-96 3.1 3.0
Dec-96 3.6 3.3
Source: Bureau of Labor Statistics/Haver Analytics
An appraisal of these various factors lead us to believe that the trend of
interest rates is gradually upward and the First American bond portfolios are
defensively positioned.
THE BOND MARKET BALANCE
[GRAPHIC]
Scale weighted towards the negatives
Negatives Positives
Resilience of economy Slow economic growth
Harbingers of inflation Low inflation
Budget impasse Deficit reductuion attempts
Japanese banks Stable to rising dollar
We believe that stocks remain in a long term advance and that good investment
opportunities can be found by use of the investment disciplines employed by
the First American Funds. However, the extraordinary advance in stock prices,
more difficult profit comparisons, and generally rising interest rates give
us reason to be moderately cautious in addressing the market's appreciation
potential during the next quarter or two.
THE STOCK MARKET BALANCE
[GRAPHIC]
Scale weighted towards the negatives
Negatives Positives
Slowing economic growth Sustained economic expansion
Difficult profit comparisons High level of profitability
Bottoming interest rates Low inflation
High valuation Liquidity
Speculative tone Investor enthusiasm
Thanks to the confidence of our shareholders, the First American Funds family
has continued to grow rapidly this year by offering a wide choice of
investment alternatives in equity, fixed income, and money market portfolios.
Our well defined investment disciplines assure that, utilized singly or in
combination, the Funds will satisfy the unique investment needs of each of
our clients. It has been a privilege to serve our shareholders.
Sincerely,
/s/ John M. Murphy, Jr.
John M. Murphy, Jr.
Chief Investment Officer,
First Asset Management
STATEMENTS OF NET ASSETS ---- MARCH 31, 1996 (Unaudited)
PRIME OBLIGATIONS FUND
Description Par (000) Value (000)
<TABLE>
<CAPTION>
<S> <C> <C>
COMMERCIAL PAPER--43.9%
AES Shady Point (LOC: Bank of Tokyo)
5.348%, 04/03/96 $ 7,900 $ 7,898
Asset Securitization
5.229%, 04/02/96 (B) 33,000 32,995
Banco Nacional de Mexico S.A.
(LOC: Barclays Bank)
5.394%, 04/03/96 5,000 4,999
Beta Finance
5.369%, 06/14/96 21,500 21,266
Bridge Oil International
(LOC: Westpac Banking)
5.302%, 04/11/96 4,500 4,493
Cemex S.A. (LOC: Credit Suisse)
5.166%, 05/23/96 10,000 9,926
Cofco Capital (LOC: Credit Suisse)
5.205%, 05/30/96 18,400 18,245
Credit Card Securitization
5.215%, 04/16/96 (B) 9,150 9,130
5.205%, 04/23/96 (B) 16,022 15,972
Crown Leasing USA
(LOC: Bank of Tokyo)
5.570%, 04/12/96 (B) 12,400 12,379
CS First Boston
5.230%, 05/10/96 15,000 14,916
DIC Americas (LOC: Mitsubishi Bank)
5.525%, 04/12/96 20,000 19,966
5.525%, 04/17/96 10,000 9,976
Distribution Funding
5.426%, 04/08/96 (B) 20,000 19,979
5.331%, 04/09/96 (B) 46,334 46,279
5.243%, 04/10/96 (B) 20,000 19,974
5.313%, 04/12/96 (B) 8,073 8,060
5.286%, 04/15/96 (B) 25,000 24,949
Enterprise Funding
5.298%, 04/04/96 (B) 17,094 17,087
5.233%, 04/19/96 (B) 13,415 13,380
5.392%, 04/23/96 (B) 13,656 13,612
5.212%, 04/25/96 (B) 26,254 26,164
5.477%, 04/29/96 (B) 15,000 14,936
5.217%, 05/01/96 (B) 18,354 18,275
5.207%, 05/15/96 (B) 10,355 10,290
5.399%, 09/10/96 (B) 12,022 11,737
First Deposit Master Trust
5.229%, 04/12/96 (B) 24,967 24,927
5.381%, 06/06/96 (B) 15,000 14,854
5.397%, 06/25/96 (B) 10,120 9,993
Fleet Funding
5.252%, 04/18/96 (B) 33,192 33,110
Grupo Financiero Bancomer SA Grand Cayman BRH
(LOC: Bank of Montreal)
5.594%, 07/11/96 15,000 14,772
5.454%, 08/08/96 24,000 23,546
5.482%, 08/08/96 10,000 9,810
5.609%, 08/08/96 15,000 14,710
5.193%, 07/11/96 5,000 4,929
Hahn Issuing II (LOC: Citibank)
5.427%, 04/24/96 (B) $16,455 $16,398
Hartz 667 (LOC: Mitsubishi Bank)
5.425%, 04/08/96 10,558 10,547
Hosokawa Micron International
(LOC: Mitsubishi Bank)
5.528%, 04/16/96 25,000 24,943
5.677%, 04/25/96 2,000 1,993
International Securitization
(Guarantor: FNB Chicago)
5.252%, 04/30/96 (B) 20,000 19,916
5.552%, 05/29/96 (B) 10,000 9,911
5.513%, 04/11/96 (B) 15,000 14,977
5.393%, 04/16/96 (B) 20,944 20,897
5.395%, 04/19/96 (B) 21,130 21,073
5.400%, 05/22/96 (B) 6,756 6,705
5.405%, 05/28/96 (B) 23,186 22,990
5.449%, 09/16/96 (B) 5,142 5,015
Merrill Lynch
5.788%, 07/26/96 30,000 29,464
5.486%, 11/05/96 11,500 11,131
Pemex Capital (LOC: Swiss Bank)
5.203%, 04/04/96 15,000 14,994
Petroleo Brasiliero SA (LOC: Barclays Bank)
5.388%, 08/12/96 25,000 24,513
Pooled Accounts Receivable Capital
5.281%, 04/15/96 (B) 15,089 15,058
5.393%, 04/18/96 (B) 9,591 9,567
5.375%, 05/14/96 (B) 15,362 15,264
5.365%, 05/14/96 (B) 25,000 24,841
Premium Funding
5.244%, 04/12/96 (B) 8,105 8,092
5.523%, 04/22/96 (B) 7,028 7,005
5.253%, 04/23/96 (B) 5,052 5,036
5.243%, 04/23/96 (B) 14,124 14,079
5.389%, 05/06/96 (B) 12,588 12,523
5.251%, 05/07/96 (B) 4,042 4,021
5.436%, 06/05/96 (B) 10,000 9,903
5.457%, 06/05/96 (B) 25,000 24,756
Receivables Capital
5.271%, 04/03/96 (B) 12,521 12,517
5.450%, 04/12/96 (B) 3,381 3,375
5.287%, 04/22/96 (B) 13,019 12,979
5.424%, 04/24/96 (B) 20,000 19,931
5.198%, 04/26/96 (B) 10,000 9,964
5.412%, 04/26/96 (B) 25,000 24,907
5.229%, 05/03/96 (B) 10,761 10,711
5.465%, 05/09/96 (B) 20,000 19,885
Towson Town Center
(LOC: Mitsubishi Bank)
5.352%, 04/04/96 15,000 14,993
5.375%, 04/10/96 4,000 3,995
U.S. Prime Property (LOC: Westpac Bank)
5.397%, 05/24/96 25,000 24,803
TOTAL COMMERCIAL PAPER
(Cost $1,141,206) 1,141,206
CORPORATE OBLIGATIONS--24.7%
Anchor National Life Insurance Investment
5.500%, 04/01/96 (A) $75,000 $75,000
Bear Stearns
5.550%, 03/11/97 25,000 25,000
5.362%, 04/03/96 (A) 50,000 50,000
5.425%, 04/18/96 (A) 25,000 25,000
Beta Finance
5.870%, 08/19/96 20,000 20,024
5.460%, 06/07/96 (A) 60,000 60,000
Ford Motor Credit
8.625%, 04/15/96 20,000 20,020
9.100%, 07/05/96 10,000 10,080
5.625%, 03/03/97 3,000 3,010
General Electric Capital
5.500%, 04/05/96 (A) 25,000 25,000
Goldman Sachs Group
5.750%, 04/08/96 25,000 25,000
5.875%, 06/04/96 20,000 20,000
International Lease Finance
6.800%, 09/30/96 3,000 3,014
6.375%, 11/01/96 4,000 4,012
Merrill Lynch
6.050%, 08/19/96 35,000 35,000
5.580%, 03/14/97 25,000 25,000
Morgan Stanley
7.790%, 02/03/97 6,000 6,117
Securitized Triple A Receivables Trust
5.898%, 04/20/96 (A) (B) 12,500 12,503
Structured Enhanced Return Trust
1994 A-5
5.362%, 04/25/96 (A) (B) 47,000 46,992
Structured Enhanced Return Trust
1995 A-17
5.425%, 04/15/96 (A) (B) 50,000 49,991
Structured Enhanced Return Trust
1995 A-18
5.425%, 04/18/96 (A) (B) 25,000 24,999
Sun Life Insurance of America
5.750%, 04/02/96 (A) 75,000 75,000
TOTAL CORPORATE OBLIGATIONS
(Cost $640,762) 640,762
LOAN PARTICIPATION CERTIFICATES--10.4%
Barclays Bank (Cargill)
5.410%, 04/01/96 20,000 20,000
5.400%, 04/03/96 20,000 20,000
Barclays Bank (Georgia Power)
5.270%, 04/04/96 25,000 25,000
5.420%, 06/28/96 24,000 24,000
Barclays Bank (National Rural Utilities)
5.260%, 04/19/96 15,500 15,500
5.260%, 04/19/96 20,000 20,000
5.390%, 04/22/96 12,000 12,000
CoreStates Bank (Weyerhauser Mortgage)
5.370%, 04/15/96 43,780 43,780
Toronto Dominion Bank (Georgia Power)
5.260%, 05/01/96 $30,000 $ 30,000
5.260%, 05/01/96 12,000 12,000
Toronto Dominion Bank (National
Rural Utilities)
5.240%, 04/05/96 25,000 25,000
5.230%, 04/11/96 22,000 22,000
TOTAL LOAN PARTICIPATION CERTIFICATES
(Cost $269,280) 269,280
U.S. GOVERNMENT AGENCY OBLIGATIONS--8.4%
Export-Import Bank
5.466%, 05/15/96 (A) (B) 70,455 70,443
Export-Import Bank/KA Leasing
5.426%, 05/15/96 (A) (B) 36,162 36,163
FHLB
5.700%, 04/14/96 (A) 25,000 25,011
5.830%, 05/01/96 (A) 25,000 25,026
SLMA
5.470%, 05/20/96 (A) 11,150 11,142
5.470%, 04/22/96 (A) 10,000 9,996
5.380%, 06/07/96 (A) 38,400 38,100
U.S. AID
5.570%, 09/18/96 (A) 1,250 1,248
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $217,129) 217,129
CERTIFICATES OF DEPOSIT--4.6%
Bank of America National Trust & Savings
San Francisco, CA
4.900%, 02/12/97 20,000 19,886
FCC National Bank of Wilmington
5.500%, 03/14/97 50,000 49,982
Mercantile Safe Deposit & Trust
5.300%, 04/08/96 (A) (B) 25,000 25,000
5.300%, 04/08/96 (A) (B) 25,000 25,000
TOTAL CERTIFICATES OF DEPOSIT
(Cost $119,868) 119,868
ASSET-BACKED SECURITIES--4.3%
CARCO Auto Loan Master Trust 1993-2 A1
5.495%, 04/15/96(A) 106,500 106,500
Money Market Auto Loan Trust
5.595%, 04/15/96 (A) 5,150 5,151
TOTAL ASSET-BACKED SECURITIES
(Cost $111,651) 111,651
MASTER NOTES--0.3%
Associates Corporation of North America
5.233%, 04/01/96 (C) 5,271 5,271
Goldman Sachs
5.460%, 04/01/96 (C) 3,795 3,795
TOTAL MASTER NOTES
(Cost $9,066) 9,066
REPURCHASE AGREEMENT--3.5%
Salomon Brothers 5.430%, dated
03/29/96, matures 04/01/96, repurchase price
$91,809,830 (collateralized by various FHLMC
and FNMA, Bonds, total par value $123,695,935,
4.50%-7.307%, 6/15/99-2/15/24:
total market value $102,292,501) $91,768 $ 91,768
TOTAL REPURCHASE AGREEMENT
(Cost $91,768) 91,768
TOTAL INVESTMENTS--100.1%
(Cost $2,600,730) 2,600,730
OTHER ASSETS AND LIABILITIES--(0.1)%
OTHER ASSETS AND LIABILITIES, NET (2,610)
NET ASSETS:
Portfolio shares--Institutional Class ($.01 par
value--20 billion authorized based on
2,430,936,773 outstanding shares 2,430,937
Portfolio shares--Retail Class A ($.01 par
value--20 billion authorized) based on
147,281,041 outstanding shares 147,281
Portfolio shares--Retail Class B ($.01 par value--20
billion authorized) based on 459,314 outstanding shares 460
Portfolio shares--Corporate Trust Class ($.01 par value--20
billion authorized) based on 19,440,077 outstanding shares 19,440
Accumulated net realized gain on investments 2
TOTAL NET ASSETS--100.0% $2,598,120
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, OFFERING PRICE, AND REDEMPTION PRICE PER
SHARE--RETAIL CLASS B (1) $ 1.00
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER
SHARE--CORPORATE TRUST CLASS $ 1.00
</TABLE>
(1) 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 March 31, 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) Variable Rate Security with Demand Features-- the rate reported on the
Statement of Net Assets is the rate in effect at March 31, 1996. The
date shown is the longer of the reset or demand date.
AID--Agency for International Development
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)
<TABLE>
<CAPTION>
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS--50.4%
Export-Import Bank
5.406%, 04/15/96 (A) (B) $25,000 $25,000
5.426%, 05/15/96 (A) (B) 18,199 18,199
5.466%, 05/15/96 (A) (B) 30,000 29,995
FFCB
5.540%, 04/24/96 (A) 20,000 20,030
4.950%, 03/03/97 10,000 9,969
FHLB
5.540%, 05/16/96 (A) 13,000 12,963
5.762%, 06/04/96 (A) 20,000 19,975
5.750%, 06/30/96 (A) 25,000 25,062
6.125%, 08/05/96 5,505 5,521
5.420%, 01/02/97 10,000 10,000
5.035%, 03/06/97 21,340 21,286
FHLMC
5.670%, 04/14/96 (A) 15,000 15,002
FNMA
5.210%, 05/03/96 30,000 29,863
5.825%, 05/13/96 10,000 9,935
5.772%, 05/13/96 20,000 19,871
8.150%, 08/12/96 17,860 18,044
5.680%, 10/07/96 25,000 24,994
5.310%, 11/20/96 (A) 50,000 49,984
SLMA
5.470%, 04/22/96 (A) 15,000 15,000
5.310%, 05/10/96 (A) 20,000 20,000
5.380%, 06/07/96 (A) 14,000 13,976
5.310%, 06/28/96 (A) 10,000 10,000
U.S. AID
5.570%, 04/15/96 (A) 8,000 8,017
5.570%, 04/15/96 (A) 13,000 13,000
5.620%, 04/15/96 (A) 1,000 1,000
5.570%, 05/15/96 (A) 11,000 11,000
5.368%, 05/15/96 (A) 10,000 9,987
5.358%, 05/15/96 (A) 15,000 15,000
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $482,673) 482,673
OTHER U.S. GOVERNMENT OBLIGATIONS--6.3%
Downey Savings & Loan
(LOC: FHLB of San Francisco)
5.682%, 04/12/96 10,000 9,983
5.733%, 05/28/96 15,000 14,870
5.736%, 07/12/96 15,000 14,766
Fidelity Federal Bank Discount Los Angeles,
California (LOC: FHLB of San Francisco)
5.226%, 04/09/96 10,000 9,989
5.288%, 09/20/96 11,000 10,729
TOTAL OTHER U.S. GOVERNMENT OBLIGATIONS
(Cost $60,337) 60,337
U.S. TREASURY OBLIGATION--2.6%
U.S. Treasury Note
7.500%, 01/31/97 25,000 25,411
TOTAL U.S. TREASURY OBLIGATION
(Cost $25,411) 25,411
REPURCHASE AGREEMENTS--40.7%
Bear Stearns 5.350%, dated 03/29/96, matures
04/01/96, repurchase price $150,066,875
(collateralized by various
U.S. Treasury STRIPS, total par value
$272,130,000, 11/15/98--11/15/18:
total market value $154,066,000) $150,000 $150,000
Daiwa Securities 5.500%, dated 03/29/96,
matures 04/03/96, repurchase price $40,080,556
(collateralized by U.S. Treasury Bonds, total
par value $44,065,000, 6.25%-7.875%,
02/15/21-08/15/23: total market value
$41,128,290) 40,000 40,000
First Union Capital 5.420%, dated 03/29/96,
matures 04/02/96, repurchase price $40,018,067
(collateralized by U.S. Treasury Note, total
par value $39,420,000, 7.25%, 11/30/96: total
market value $40,924,530) 40,000 40,000
Lehman Brothers 5.490%, dated 03/29/96,
matures 04/02/96, repurchase price $45,027,450
(collateralized by U.S. Treasury Note and U.S.
Treasury Bond total par value $34,555,000,
6.50%-10.375%, 04/30/99-11/15/12: total market
value $45,928,018) 45,000 45,000
Prudential 5.470%, dated 03/29/96, matures
04/01/96, repurchase price $29,748,052
(collateralized by various FNMA obligations,
total par value $35,894,479, 5.50%-7.20%,
02/01/01-07/25/25:
total market value $30,329,188) 29,735 29,735
Salomon Brothers 5.430%, dated 03/29/96,
matures 04/01/96, repurchase price $85,777,025
(collateralized by various FNMA obligations,
total par value $120,115,723, 5.25%-8.00%,
10/25/07-09/15/24:
total market value $91,368,786) 85,738 85,738
TOTAL REPURCHASE AGREEMENTS
(Cost $390,473) 390,473
TOTAL INVESTMENTS--100.0%
(Cost $958,894) 958,894
OTHER ASSETS AND LIABILITIES--0.0%
Other Assets and Liabilities, Net 266
NET ASSETS:
Portfolio shares--Institutional Class ($.01 par value--20
billion authorized) based on 721,722,922 outstanding shares $721,723
Portfolio shares--Corporate Trust Class ($.01 par value--20
billion authorized) based on 237,433,349 outstanding shares 237,433
Accumulated net realized gain on investments 4
TOTAL NET ASSETS:--100.0% $959,160
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
</TABLE>
(A) Variable Rate Security--the rate reported on the Statement of Net
Assets is the rate in effect as of March 31, 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--Separate 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)
<TABLE>
<CAPTION>
<S> <C> <C>
U.S. TREASURY OBLIGATIONS--22.0%
U.S. Treasury Bills
5.170%, 04/25/96 $ 25,000 $ 24,914
5.520%, 07/25/96 25,000 24,559
5.045%, 01/09/97 25,000 24,008
5.115%, 02/06/97 25,000 23,895
U.S. Treasury Notes
5.875%, 05/31/96 50,000 50,007
8.000%, 10/15/96 50,000 50,681
7.500%, 01/31/97 65,000 66,134
U.S. Treasury STRIPS
0.000%, 05/15/96 25,000 24,839
0.000%, 11/15/96 25,000 24,231
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $313,268) 313,268
REPURCHASE AGREEMENTS--78.1%
Bear Stearns 5.350%, dated 03/29/96, matures
04/01/96, repurchase price $250,111,458
(collateralized by various U.S. Treasury
Strips, total par value $409,660,000, rates,
11/15/97-05/15/16: total market value
$256,870,000) 250,000 250,000
BT Securities 5.400%, dated 03/29/96, matures
04/04/96, repurchase price $60,054,000
(collateralized by
U.S. Treasury Note, total par value
$60,565,000, 5.875%, 07/31/97:
total market value $61,284,001) 60,000 60,000
Daiwa Securities 5.500%, dated 03/29/96,
matures 04/03/96, repurchase price $60,045,833
(collateralized by various U.S. Treasury
Bonds, total par value $65,655,000,
6.25%-7.875% 02/15/21--08/15/23:
total market value $61,195,017) 60,000 60,000
First Boston 5.450%, dated 03/29/96, matures
04/03/96, repurchase price $60,045,417
(collateralized by various U.S. Treasury
Bonds, total par value $44,413,000,
7.125%-7.50%, 11/15/16--02/15/23:
U.S. Treasury Note, total par value
$15,000,000, 6.00%, 08/31/97: total market
value $61,217,633) 60,000 60,000
First Union 5.480%, dated 03/29/96, matures
04/01/96, repurchase price $195,089,050
(collateralized by various U.S. Treasury
Notes, total par value $189,902,000,
7.25%-8.00%, 10/15/96--11/15/96:
total market value $199,198,945) 195,000 195,000
Goldman Sachs 5.400%, dated 03/29/96, matures
04/04/96, repurchase price $60,054,000
(collateralized by U.S. Treasury Bond, total
par value $55,815,000, 7.50%, 11/15/16:
total market value $61,166,781) 60,000 60,000
Lehman Brothers 5.490%, dated 03/29/96,
matures 04/02/96, repurchase price $60,036,600
(collateralized by
U.S. Treasury Bond, total par value
$48,770,000, 8.875%, 02/15/19:
U.S. Treasury Note, total par value $890,000,
6.50%, 04/30/99: total market value
$61,227,880) $ 60,000 $ 60,000
Nomura Securities 5.310%, dated 03/29/96,
matures 04/03/96, repurchase price $60,044,250
(collateralized by various U.S. Treasury
Bonds, total par value $51,120,000,
8.00%-11.625%, 11/15/02--11/15/21:
total market value $61,427,614) 60,000 60,000
Prudential Securities 5.350%, dated 03/29/96,
04/01/96, repurchase price $59,970,564
(collateralized by various U.S. Treasury
Notes, total par value $59,973,000,
4.75%-7.25%, 05/31/96--02/15/97:
total market value $61,143,071) 59,944 59,944
UBS Securities 5.360%, dated 03/29/96,
04/01/96, repurchase price $251,139,452
(collateralized by various U.S. Treasury
Notes, total par value $245,910,000,
4.75%-9.00%, 02/15/98--01/15/99: total market
value $256,055,485) 251,027 251,027
TOTAL REPURCHASE AGREEMENTS
(Cost $1,115,971) 1,115,971
TOTAL INVESTMENTS--100.1%
(Cost $1,429,239) 1,429,239
OTHER ASSETS AND LIABILITIES--(0.1)%
Other Assets and Liabilities, Net (2,137)
NET ASSETS:
Portfolio shares--Institutional Class ($.01 par value--20
billion authorized) based on 198,757,044 outstanding shares 198,757
Portfolio shares--Corporate Trust Class ($.01 par value--20
billion authorized) based on 1,228,313,673 outstanding
shares 1,228,314
Accumulated net realized gain on investments 31
TOTAL NET ASSETS--100.0% $1,427,102
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
</TABLE>
STRIPS--Separate Trading of Registered Interest and Principal of
Securities
The accompanying notes are an integral part of the financial statements.
LIMITED TERM INCOME FUND
Description Par (000) Value (000)
<TABLE>
<CAPTION>
<S> <C> <C>
ASSET-BACKED SECURITIES--72.1%
ADJUSTABLE RATE MORTGAGES--3.6%
Merrill Lynch Mortgage Investors
1993-C A4
6.313%, 03/15/18 (A) $4,000 $4,000
AUTO COMPANY SUBSIDIARIES--AUTO--6.5%
Premier Auto Trust 1992-5 B
4.900%, 03/15/98 635 632
Premier Auto Trust 1993-4 B
4.950%, 02/02/99 671 664
Premier Auto Trust 1994-2 B
6.500%, 06/02/00 2,682 2,693
Premier Auto Trust 1994-3 B
6.800%, 12/02/99 3,111 3,139
7,128
BANKS--AUTO--6.5%
Boulevard Auto Trust 1993-1 A
4.550%, 03/15/98 455 453
New South Auto Trust 1994-B A
8.475%, 01/15/02 2,391 2,449
Western Financial Grantor Trust 1993-2 A2
4.700%, 10/01/98 1,642 1,621
Western Financial Grantor Trust 1994-3 B
6.650%, 12/01/99 1,631 1,644
Zions Auto Trust 1993-1 B
5.650%, 06/15/99 901 900
7,067
BANKS--BOATS & RV'S--5.3%
CFC Grantor Trust TR14
7.150%, 11/15/06 (C) 4,391 4,425
Chemical Financial Acceptance 1991-A A
6.450%, 12/15/97 1,362 1,358
5,783
BANKS--CREDIT CARD RECEIVABLES--12.6%
First USA Credit Card Master Trust
1995-1 A
5.452%, 10/15/01 (A) 4,100 4,101
Household Credit Card Master Trust
1995-1 B
5.663%, 12/15/02 (A) 4,200 4,200
MBNA Master Credit Card Trust
1994-B A
5.470%, 01/15/02 (A) 5,500 5,514
13,815
BUSINESS CREDIT--AUTO--1.1%
Olympic Automobile Receivables Trust
1993-C B
4.600%, 02/15/00 1,256 1,242
BUSINESS CREDIT--BUSINESS--2.8%
Leasing Solution Receivables 1994-1 A
5.575%, 03/15/99 $ 333 $ 332
Leasing Solution Receivables 1994-2 A
8.075%, 12/15/99 1,346 1,363
Orix Credit Alliance Owner Trust 1993-A A2
4.300%, 08/17/98 832 830
Orix Credit Alliance Owner Trust 1993-C B
4.600%, 08/17/98 554 554
3,079
CONSUMER FINANCE--AUTO--1.0%
Auto Bond Receivables Trust 1993-1 A
6.125%, 11/15/98 1,120 1,114
CONSUMER FINANCE--FIRST MORTGAGE RELATED--5.9%
Saxon Mortgage Securities 1994-4A 1A2
5.250%, 04/25/24 2,895 2,857
Prudential Home Mortgage Securities 1992-A
D2-1
7.450%, 04/28/22 3,667 3,663
6,520
CONSUMER FINANCE--SECOND MORTGAGE RELATED--3.0%
HFC Home Equity Loan Trust 1992-2 B
6.850%, 11/20/12 1,410 1,391
Household Finance 1991-3 A3
6.100%, 11/20/06 1,033 1,025
Remodelers Home Improvement
1994-1 A
7.800%, 11/20/99 (C) 827 829
3,245
EQUIPMENT LEASES--3.9%
JLC Lease Receivables Trust 1994-1 A
6.200%, 12/22/99 (A) 3,767 3,767
World Omni Leasing 1993-1 B
5.000%, 05/17/99 500 500
4,267
MORTGAGE BANKERS & LOANS--SECOND
MORTGAGE RELATED--11.8%
BCI Home Equity Loan 1994-1 B
6.225%, 03/29/44 (A) 2,048 2,055
Greentree Financial 1995 A-A1
7.000%, 04/15/20 1,173 1,181
The Money Store Home Equity Loan Trust 1992-D1 A1
6.500%, 01/15/04 2,415 2,427
The Money Store Home Equity Loan Trust
1993-B A1
5.400%, 08/15/05 2,523 2,453
The Money Store Home Equity Loan Trust 1994-C1 A1
6.775%, 09/15/07 784 785
The Money Store Trust Series 1994-D1 A2
8.000%, 11/15/07 $4,000 $ 4,079
12,980
RETAIL MALL MORTGAGES--3.6%
Potomac Mills Finance 1C
6.513%, 10/20/04 (A) (C) 4,000 4,000
VACATION HOME MORTGAGES--4.5%
Patten 1995-1A
6.906%, 08/01/11 (A)(C) 3,193 3,189
RCI Vacation Ownership Mortgage Trust 1991-B
7.500%, 08/25/98 (C) 1,726 1,726
4,915
TOTAL ASSET-BACKED SECURITIES
(Cost $83,186) 79,155
OTHER MORTGAGE-BACKED OBLIGATIONS--15.0%
Bear Stearns Secured Investors Trust 1991-2 E
7.500%, 12/20/98 1,500 1,514
Bristol Oaks, L.P. 1994-1 B
6.275%, 07/10/99 (A) 4,250 4,176
Capstead Securities IV 1992-3 B
8.000%, 06/25/22 2,265 2,276
FNMA 1989-65 G
8.650%, 08/25/18 1,594 1,617
General Electric Capital Mortgage 1994-29 A1
8.300%, 11/25/24 4,098 4,141
General Electric Capital Mortgage 1995-1 A1
8.350%, 02/25/25 1,160 1,162
Mortgage Obligation Structured Trust 1993-1 A1
6.350%, 10/25/18 1,047 1,038
RTC 1992-11 A1A
7.000%, 10/25/24 494 493
TOTAL OTHER MORTGAGE-BACKED OBLIGATIONS
(Cost $12,215) 16,417
TAXABLE MUNICIPAL BOND--1.8%
Colorado Health Facilities Authority (RB)
5.850%, 07/01/25 (A) 2,000 2,000
TOTAL TAXABLE MUNICIPAL BOND
(Cost $2,000) 2,000
CORPORATE OBLIGATIONS--1.7%
FOOD, BEVERAGE & TOBACCO--0.8%
Philip Morris
8.875%, 07/01/96 $ 900 $ 907
RETAIL--0.9%
Dayton Hudson
4.820%, 04/01/96 1,000 1,000
TOTAL CORPORATE OBLIGATIONS
(Cost $1,907) 1,907
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED
OBLIGATIONS--1.5%
FHLMC 1606-B
4.750%, 01/15/01 682 679
FHLMC 1229-G
6.800%, 07/15/05 977 982
TOTAL U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED OBLIGATIONS
(Cost $1,663) 1,661
MASTER NOTE--1.4%
Goldman Sachs
5.460%, 04/01/96 (B) 1,500 1,500
TOTAL MASTER NOTE
(Cost $1,500) 1,500
REPURCHASE AGREEMENTS--18.1%
Merrill Lynch 5.450%, dated 03/29/96, matures
04/01/96, repurchase price $10,251,468
(collateralized by various U.S. Treasury
Bills, total par value $260,321,
01/09/97-03/06/97: U.S. Treasury Bonds, total
par value $7,561,107, 7.625%-14%, 05/15/05-
08/15/13: total market value $10,451,751) 10,247 10,247
J.P. Morgan 5.345%, dated 03/29/96, matures
04/01/96, repurchase price $9,660,143
(collateralized by various U.S. Treasury
STRIPS, total par value $38,311,388,
11/15/96-05/15/22: total market value
$9,848,959) 9,655 9,656
TOTAL REPURCHASE AGREEMENTS
(Cost $19,903) 19,903
TOTAL INVESTMENTS--111.6%
(Cost $122,374) 122,543
OTHER ASSETS AND LIABILITIES--(11.6)%
Other Assets and Liabilities, Net (12,714)
NET ASSETS:
Portfolio shares--Institutional Class
($.0001 par value--2 billion
authorized) based on 10,226,911.899
outstanding shares $104,697
Portfolio shares--Retail Class A
($.0001 par value--2 billion
authorized) based on 846,941.458
outstanding shares 9,041
Undistributed net investment income 1
Accumulated net realized loss on investments (4,079)
Net unrealized appreciation of investments 169
TOTAL NET ASSETS:--100.0% $109,829
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE
PER SHARE--INSTITUTIONAL CLASS $ 9.92
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE--RETAIL CLASS A $ 9.92
MAXIMUM SALES CHARGE OF 2.00%(1) 0.20
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 10.12
</TABLE>
(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 March 31, 1996.
(B) Variable Rate Security with Demand Features--the rate reported on the
Statement of Net Assets is the rate in effect as of March 31, 1996. The
date shown is the longer of the reset or demand date.
(C) 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.
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
RB--Revenue Bond
RTC--Resolution Trust Corporation
STRIPS--Separate 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)
<TABLE>
<CAPTION>
<S> <C>
U.S. TREASURY OBLIGATIONS--50.8%
U.S. Treasury Notes
6.000%, 08/31/97 $18,890 $18,965
5.125%, 11/30/98 14,765 14,478
6.250%, 08/31/00 5,270 5,292
5.625%, 11/30/00 4,650 4,555
6.250%, 02/15/03 5,920 5,903
7.250%, 08/15/04 2,425 2,558
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $52,304) 51,751
CORPORATE OBLIGATIONS--11.5%
Bear Stearns
6.500%, 06/15/00 2,800 2,779
Cigna
7.400%, 01/15/03 3,075 3,117
Farmers Group
8.250%, 07/15/96 320 322
GMAC
7.650%, 01/16/98 2,385 2,442
Metropolitan Life Insurance
6.300%, 11/01/03 (B) 3,155 3,017
TOTAL CORPORATE OBLIGATIONS
(Cost $11,789) 11,677
OTHER MORTGAGE-BACKED OBLIGATIONS--8.3%
Drexel Burnham Lambert Trust S2
9.000%, 08/01/18 80 85
General Electric Capital Mortgage
6.000%, 04/25/09 2,925 2,826
Kidder Peabody Mortgage Assets Trust 6F
7.950%, 07/20/18 337 339
MDC Mortgage Funding P3
8.200%, 11/20/17 15 15
Morgan Stanley Mortgage Trust W5
9.050%, 05/01/18 148 157
Prudential Home Mortgage Securities 1992-A3
7.000%, 04/25/99 1,601 1,594
Prudential Home Mortgage Securities 1994-28
6.768%, 09/25/01 2,261 2,235
RTC 1991-M6 B2
7.000%, 06/25/21 (B) 1,282 1,269
TOTAL OTHER MORTGAGE-BACKED OBLIGATIONS
(Cost $8,368) 8,520
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED OBLIGATIONS--5.9%
FHLMC
6.000%, 11/15/08 3,500 3,314
8.000%, 10/15/20 2,630 2,694
FNMA
14.750%, 03/01/12 1 1
TOTAL U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED OBLIGATIONS
(Cost $6,094) 6,009
ASSET-BACKED SECURITIES--5.6%
BW Home Equity Trust 1990-1 1
9.250%, 09/15/05 $ 22 $ 23
Chemical Financial Acceptance 1991-A 1
6.450%, 12/15/97 497 496
Fleet Finance Home Equity 1990-1
8.900%, 01/16/06 65 67
Household Finance Home Equity 1993-2 A3
4.650%, 12/20/08 1,698 1,654
Olympic Auto Receivables Trust 1993-D
4.750%, 07/15/00 1,179 1,166
Olympic Auto Receivables Trust 1994-A
5.700%, 01/15/01 285 285
Zale Funding Series 94-1, Cl B
7.500%, 05/15/03 2,000 2,017
TOTAL ASSET-BACKED SECURITIES
(Cost $5,690) 5,708
MASTER NOTE--1.4%
Goldman Sachs
5.460%, 04/01/96 (A) 1,435 1,435
TOTAL MASTER NOTE
(Cost $1,435) 1,435
REPURCHASE AGREEMENT--6.7%
Merrill Lynch 5.450%, dated 03/29/96, matures
04/01/96, repurchase price $6,784,410
(collateralized by various U.S. Treasury
Bills, total par value $172,280,
01/09/97-03/06/97: U.S. Treasury Bonds, total
par value $5,003,932, 7.625%-14.000%,
05/15/05-08/15/13: total market value
$6,916,957) 6,781 6,781
TOTAL REPURCHASE AGREEMENT
(Cost $6,781) 6,781
TOTAL INVESTMENTS--90.2%
(Cost $92,461) $91,881
</TABLE>
(A) Variable Rate Security with Demand Features--the rate reported on the
Statement of Net Assets is the rate in effect as of March 31, 1996. the
date shown is the longer of the reset or demand date.
(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.
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
GMAC--General Motors Acceptance Corporation
RTC--Resolution Trust Company
STRIPS--Separate Trading of Registered Interest and Principal of
Securities
The accompanying notes are an integral part of the financial statements.
FIXED INCOME FUND
Description Par (000) Value (000)
<TABLE>
<CAPTION>
<S> <C> <C>
U.S. TREASURY OBLIGATIONS--39.7%
U.S. TREASURY BOND
7.125%, 02/15/23 $48,505 $ 49,976
U.S. Treasury Notes
6.000%, 08/31/97 37,595 37,744
5.125%, 11/30/98 20,475 20,077
6.250%, 08/31/00 36,085 36,239
5.625%, 11/30/00 8,175 8,007
6.250%, 02/15/03 2,240 2,233
U.S. Treasury STRIPS
0.000%, 02/15/99 1,055 893
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $156,583) 155,169
OTHER MORTGAGE-BACKED OBLIGATIONS--15.7%
Bristol Oaks 1994-1 B
6.275%, 07/10/99 (A) 2,000 1,965
Collateralized Mortgage Corporation 88-13 C
8.000%, 09/20/19 111 114
Countrywide Mortgage-Backed Securities
1994-GA3
6.500%, 04/25/24 2,380 2,301
Drexel Burnham Lambert Trust S-2
9.000%, 08/01/18 703 741
General Electric Capital Mortgage 1994-12 A4
6.000%, 04/25/09 3,125 3,019
General Electric Capital Mortgage 1994-11 A1
6.500%, 03/25/24 3,860 3,849
General Electric Capital Mortgage 1994-17 A6
7.000%, 05/25/24 7,000 6,789
General Electric Capital Mortgage 1994-17 A7
7.000%, 05/25/24 5,179 4,824
General Electric Capital Mortgage 1994-29 A1
8.300%, 11/25/24 5,548 5,606
Goldman Sachs Trust 1 A
5.888%, 05/01/17 (A) 7,133 7,131
J.P. Morgan Commercial Mortgage Finance
1995-C1 B
7.618%, 07/25/10 (A) 10,329 10,485
Merrill Lynch Mortgage Investors 1993-A4
6.313%, 03/15/18 (A) 6,000 6,000
Prudential Home Mortgage Securities 1994-6 A3
7.000%, 04/25/99 686 683
Prudential Home Mortgage Securities 1994-28
6.768%, 09/25/01 (A) 5,939 5,871
Residential Funding 1992-36 A2 P11
5.700%, 11/25/07 909 898
RTC 1991-M6 B2
7.000%, 06/25/21 (B) $ 1,012 $ 1,002
TOTAL OTHER MORTGAGE-BACKED OBLIGATIONS
(Cost $60,394) 61,278
CORPORATE OBLIGATIONS--14.9%
Bear Stearns
9.125%, 04/15/98 1,000 1,051
8.750%, 03/15/04 1,000 1,106
Cigna
7.400%, 01/15/03 10,250 10,391
Farmers Group
8.250%, 07/15/96 1,755 1,768
General Foods
6.000%, 06/15/01 1,440 1,411
GMAC
7.350%, 01/27/98 11,000 11,220
6.150%, 05/11/98 2,025 2,022
Metropolitan Life Insurance
6.300%, 11/01/03 (C) 10,990 10,509
Morgan Stanley Group
7.320%, 01/15/97 250 254
NationsBank
7.750%, 08/15/04 1,000 1,045
Santander Financial Issuances
6.800%, 07/15/05 12,545 12,294
Torchmark
9.625%, 05/01/98 250 265
7.875%, 05/15/23 5,000 4,938
TOTAL CORPORATE OBLIGATIONS
(Cost $58,420) 58,274
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED OBLIGATIONS--4.7%
FHLMC
6.000%, 11/15/08 1,275 1,207
6.500%, 12/15/23 5,439 4,918
6.500%, 01/15/24 6,657 5,461
7.000%, 02/15/24 7,133 6,854
TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-BACKED
OBLIGATIONS
(Cost $18,426) 18,440
ASSET-BACKED SECURITIES--2.9%
BW Home Equity Trust 1990-1 1
9.250%, 09/15/05 71 73
CoreStates Home Equity Trust 1994-2 A2
7.000%, 10/15/09 6,500 6,511
Morgan Stanley Mortgage Trust
9.050%, 05/01/18 35 37
Olympic Auto Receivables Trust 1994-A
5.700%, 01/15/01 367 366
Zale Funding 1994-1B
7.500%, 05/15/03 (C) 4,100 4,135
TOTAL ASSET-BACKED SECURITIES
(Cost $10,676) 11,122
TAXABLE MUNICIPAL BONDS--2.3
Minneapolis, Minnesota, Single Family
Mortgage, Callable 10/01/05 @ 100 (RB)
6.920%, 04/01/09 $ 8,415 $ 8,131
San Diego County, California, Pension
Obligation, Series A (RB) (AMBAC)
6.560%, 08/15/06 1,000 969
TOTAL TAXABLE MUNICIPAL BONDS
(Cost $9,384) 9,100
MASTER NOTE--0.8%
Goldman Sachs
5.460%, 04/01/96 (B) 2,960 2,960
TOTAL MASTER NOTE
(Cost $2,960) 2,960
REPURCHASE AGREEMENTS--12.2%
Merrill Lynch 5.450%, dated 03/29/96, matures
04/01/96, repurchase price $24,012,315
(collateralized by various U.S. Treasury
Bills, total par value $609,757,
01/09/97-03/06/97: U.S. Treasury Bonds, total
par value $17,710,603, 7.625%-14.000%,
05/15/05- 08/15/13: total market value
$24,481,443 24,001 24,001
J.P. Morgan 5.345%, dated 03/29/96, matures
04/01/96, repurchase price
$23,743,241(collateralized by various U.S.
Treasury STRIPS, total par value $94,163,877,
11/15/96-05/15/22: total market value
$24,207,323) 23,732 23,733
TOTAL REPURCHASE AGREEMENTS
(Cost $47,734) 47,734
TOTAL INVESTMENTS--93.2%
(Cost $364,577) $364,077
</TABLE>
(A) Variable Rate Security--the rate reported on the Statement of Net
Assets is the rate in effect as of March 31, 1996.
(B) Variable Rate Security with Demand Features--the rate reported on the
Statement of Net Assets is the rate in effect as of March 31, 1996. The
date shown is the longer of the reset date or demand date.
(C) 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.
AMBAC--American Municipal Bond Assurance Corporation
FHLMC--Federal Home Loan Mortgage Corporation
GMAC--General Motors Acceptance Corporation
RB--Revenue Bond
RTC--Resolution Trust Corporation
STRIPS--Separate Trading of Registered Interest and Principal of
Securities
The accompanying notes are an integral part of the financial statements.
INTERMEDIATE GOVERNMENT BOND FUND
Description Par (000) Value (000)
<TABLE>
<CAPTION>
<S> <C> <C>
U.S. TREASURY OBLIGATIONS--76.9%
U.S. Treasury Notes
6.125%, 07/31/96 $ 3,000 $ 3,008
6.250%, 08/31/96 3,000 3,010
6.875%, 10/31/96 3,500 3,530
6.500%, 08/15/97 6,000 6,064
7.375%, 11/15/97 11,500 11,782
7.875%, 04/15/98 6,000 6,236
5.125%, 11/30/98 11,800 11,571
6.750%, 05/31/99 9,500 9,701
6.875%, 07/31/99 3,000 3,077
7.125%, 09/30/99 9,000 9,301
6.875%, 03/31/00 2,000 2,056
6.250%, 05/31/00 1,000 1,005
7.875%, 08/15/01 2,000 2,153
7.500%, 11/15/01 5,750 6,102
7.500%, 05/15/02 1,000 1,065
7.250%, 05/15/04 9,100 9,589
7.875%, 11/15/04 3,000 3,287
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $90,072) 92,537
U.S. GOVERNMENT AGENCY OBLIGATIONS--17.6%
FFCB
5.350%, 04/02/96 3,435 3,433
7.870%, 12/15/97 3,000 3,108
FHLB
4.360%, 4/25/96 1,000 999
6.975%, 07/26/99 1,000 1,027
7.440%, 08/10/01 1,000 1,053
7.750%, 02/26/97 3,000 3,055
FHLB Callable 05/05/97 @ 100
6.890%, 05/05/99 1,500 1,510
FHLB Callable 09/08/97 @ 100
7.120%, 09/08/99 2,000 2,026
FHLB Callable 05/04/98 @ 100
7.360%, 05/04/01 1,070 1,082
SLMA
5.830%, 05/01/96 (A) 1,000 1,000
TVA
6.000%, 11/01/00 3,000 2,970
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $21,124) 21,263
REPURCHASE AGREEMENT--1.3%
Merrill Lynch 5.450%, dated 03/29/96, matures
04/01/96, repurchase price $1,541,930
(collateralized by various U.S. Treasury
Bills, total par value $39,155,
01/09/97-03/06/97: U.S. Treasury Bonds, total
par value $1,137,271, 7.625%-
14.000%, 05/15/05-08/15/13:
total market value $1,572,055) $1,541 $ 1,541
TOTAL REPURCHASE AGREEMENT
(Cost $1,541) 1,541
TOTAL INVESTMENTS--95.8%
(Cost $112,737) 115,341
OTHER ASSETS AND LIABILITIES--4.2%
Other Assets and Liabilities, Net 5,068
NET ASSETS:
Portfolio shares--Institutional Class ($.0001
par value--2 billion authorized) based on
12,676,835 outstanding shares 114,645
Portfolio shares--Retail Class A ($.0001 par
value--2 billion authorized) based on 337,353
outstanding shares 3,172
Distribution in excess of net investment income (4)
Accumulated net realized loss on investments (8)
Net unrealized appreciation of investments 2,604
TOTAL NET ASSETS:--100.0% $120,409
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER
SHARE--INSTITUTIONAL CLASS $ 9.25
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE--RETAIL
CLASS A $ 9.26
MAXIMUM SALES CHARGE OF 3.00%(1) 0.29
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 9.55
</TABLE>
(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 March 31, 1996.
FFCB--Federal Farm Credit Bank
FHLB--Federal Home Loan Bank
SLMA--Student Loan Marketing Association
TVA--Tennessee Valley Authority
The accompanying notes are an integral part of the financial statements.
INTERMEDIATE TAX FREE FUND
Description Par (000)/Shares (000) Value (000)
<TABLE>
<CAPTION>
<S> <C> <C>
MUNICIPAL BONDS--95.9%
ARIZONA--3.7%
Maricopa County, School District #41,
Pre-refunded @ 101 (GO)
6.800%, 07/01/99 (B) $1,000 $1,085
Salt River, Salt River Agricultural Project,
Series B (RB)
5.050%, 01/01/06 1,100 1,100
2,185
CALIFORNIA--10.9%
Contra Costa, Water District, Callable
10/01/04 @ 102 (RB) (MBIA)
5.800%, 10/01/07 1,000 1,044
Orange County, Refunding Recovery,
Series A (RB) (MBIA)
5.000%, 06/01/01 500 507
Orange County, Transportation Authority,
Callable 02/15/02 @ 102 (RB)
5.700%, 02/15/03 200 207
San Bernadino County, Medical Center,
Series A (MLO) (MBIA)
4.800%, 08/01/00 2,000 2,010
San Diego, District #1 Park Facilities,
Callable 01/01/04 @ 101 (RB)
5.625%, 01/01/06 1,000 1,041
State Health Facilities Authority, Callable
10/01/98 @ 102 (RB) (CMI)
7.250%, 10/01/99 500 533
Suisun City, Redevelopment Agency Tax
Allocation, Pre-refunded @ 102 (RB)
7.250%, 04/01/00 (B) 990 1,105
6,447
COLORADO--8.1%
Arvada, Sales & Use Tax, Callable
12/01/02 @ 100 (RB) (FGIC)
5.900%, 12/01/05 1,000 1,036
Colorado Springs, Crossover Refunding, Series
A (RB)
6.350%, 11/15/01 1,000 1,084
State Health Facilities Authority, Vail Valley
Medical Center, Series A (RB)
5.300%, 01/15/00 500 500
State Health Facilities Authority, Vail Valley
Medical Center, Series A (RB)
5.450%, 01/15/01 500 500
State Housing Finance Authority, Single Family
Mortgages, Callable 08/01/99
@ 102 (RB) (FHA/VA)
7.400%, 08/01/09 745 767
Summit County, School District #1
(GO) (FGIC)
0.000%, 12/01/03 1,325 906
4,793
FLORIDA--1.9%
North Brevard County, Health, Hospital, &
Nursing Home Improvements, Jess
Parish Memorial Hospital (RB) (AMBAC)
6.800%, 09/01/96 $ 15 $ 15
Reedy Creek, Utility, Callable 10/01/97 @ 102
(RB) (MBIA)
8.900%, 10/01/03 1,000 1,084
1,099
IDAHO--1.6%
Boise City, Refunding Notes,
Callable 02/01/01 @ 106 (RB)
4.500%, 02/01/04 1,000 975
ILLINOIS--4.2%
Peoria, Moline, & Freeport, Single Family
Mortgages, Series 1995-A, Callable
10/01/05 @ 103 (RB) (AMT)
5.600%, 10/01/10 1,270 1,278
State Development Finance Authority, Lockport
Township High School
(RB) (FGIC)
0.000%, 01/01/01 1,500 1,187
2,465
INDIANA--0.8%
Perry Township, Multi-School Building,
Escrowed To Maturity (RB) (STAID)
7.000%, 07/01/97 15 15
State Housing Finance Authority, Callable
01/01/98 @ 102.5 (RB) (FPI)
7.800%, 01/01/99 415 428
443
IOWA--0.1%
Davenport, Home Ownership Mortgages,
Series 1994 (RB)
4.000%, 03/01/03 65 64
MICHIGAN--5.4%
Kalamazoo, City School District (FGIC)
4.900%, 05/01/04 (D) 1,000 1,000
Royal Oak, Hospital Finance Authority,
Callable 01/01/98 @ 102 (RB)
7.750%, 01/01/03 1,000 1,071
St. Joseph, Hospital Finance Authority,
(RB) (AMBAC)
4.750%, 01/01/02 1,100 1,092
3,163
MINNESOTA--16.2%
Anoka County, Solid Waste Disposal
(RB) (AMT) (CFC)
6.000%, 12/01/98 $1,000 $1,039
Bloomington, Mall of America, Series A,
Callable 02/01/04 @ 100 (RB)
5.450%, 02/01/09 1,000 1,027
Burnsville Apartment Projects, Series A,
Mandatory Put @ 100, Callable 06/01/96 @ 100.5
(RB)
5.000%, 12/01/98 (C) 2,000 2,003
Minneapolis, Childrens Medical Center,
Series C, Pre-refunded @ 102 (RB)
7.000%, 06/01/01 (B) 1,000 1,125
Minneapolis, Hennepin Avenue,
Series C (GO)
6.200%, 03/01/02 800 865
Minnetonka, Cliffs-Ridgedale, Multi-Family Mortgages (RB)
(FNMA)
3.309%, 09/15/25 (A) 1,000 1,000
Southern Municipal Power Agency, Callable
01/01/03 @ 102 (RB) (FGIC)
5.000%, 01/01/06 500 496
Southern Municipal Power Agency (MBIA)
0.000%, 01/01/21 2,500 569
Wayzata, School District, Series B, Callable
02/01/03 @ 100 (RB) (FGIC)
4.900%, 02/01/07 1,500 1,457
9,581
MISSISSIPPI--1.6%
Delta Correctional Facilities Authority
(RB) (MLO) (FGIC)
4.950%, 07/01/01 925 933
MISSOURI--1.8%
Kansas City, School District (RB)
(MLO) (FGIC)
6.300%, 02/01/00 1,000 1,064
NEW JERSEY--3.4%
Essex County, Public Improvements
(GO) (AMBAC)
4.875%, 11/15/03 1,000 997
State Transportation System, Series A
(RB) (AMBAC)
5.200%, 12/15/00 1,000 1,028
2,025
NEW MEXICO--1.2%
Farmington, Utility Systems,
Escrowed to Maturity (RB)
10.000%, 01/01/02 615 710
NEW YORK--2.4%
State Environmental Facilities, Pollution
Control, Callable 11/15/04 @ 102 (RB)
6.400%, 05/15/06 $1,250 $1,400
NORTH DAKOTA--3.3%
Bismarck, Hospital Authority (RB) (AMBAC)
6.250%, 05/01/99 1,000 1,047
Fargo, Water Utilities, Callable 01/01/00 @
100 (RB)
5.900%, 01/01/02 500 521
State Industrial Commission, Lignite
Program, Series A (RB)
5.750%, 11/15/05 400 410
1,978
OHIO--1.8%
West Clermont, Local School District,
Callable 12/01/05 @ 100 (GO) (AMBAC)
5.650%, 12/01/08 1,030 1,063
OKLAHOMA--0.5%
Oklahoma County, Housing Finance
Authority, Pre-refunded @ 100 (RB)
0.000%, 03/01/06 (B) 790 268
OREGON--2.2%
Deschutes & Jefferson Counties, School
District (GO) (MBIA)
5.000%, 06/01/02 500 509
Multnomah County, School District (GO)
5.100%, 06/01/03 500 507
State (GO)
7.000%, 07/01/01 250 280
1,296
PENNSYLVANIA--1.9%
Northumberland County, Commonwealth
Lease, Callable 10/15/01 @ 100 (RB)
(MLO) (MBIA)
6.600%, 10/15/02 1,000 1,094
PUERTO RICO--2.2%
Commonwealth (GO) (MBIA)
5.500%, 07/01/01 1,000 1,049
Housing Finance Authority, Single Family
Mortgages (RB) (GNMA)
5.800%, 10/15/00 145 148
Housing Finance Authority, Single Family
Mortgages (RB) (GNMA)
6.000%, 02/01/02 110 113
1,310
SOUTH DAKOTA--0.9%
Sioux Falls (GO) (MLO)
6.450%, 08/01/01 500 546
TENNESSEE--0.9%
Nashville & Davidson Counties, Metropolitan Government,
Callable 12/01/01 @ 100 (GO)
6.200%, 12/01/09 $ 500 $ 526
UTAH--0.9%
Intermountain Power Authority, Callable
07/01/98 @ 102 (RB)
7.625%, 07/01/08 500 537
VIRGINIA--9.5%
Peninsula Regional Jail Authority (RB) (MBIA)
5.300%, 10/01/09 1,000 985
Riverside, Regional Jail Authority, Callable
07/01/05 @ 102 (RB) (MBIA)
5.700%, 07/01/08 2,000 2,065
State, Series A, Callable 07/01/03
@ 102 (GO)
5.000%, 07/01/05 1,500 1,526
Virginia Beach, Callable 11/01/04
@ 102 (GO) (STAID)
5.500%, 11/01/05 1,000 1,036
5,612
WASHINGTON--2.8%
State Public Power Supply Systems, Nuclear
Project #2, Callable 01/01/01 @ 102 (RB)
7.500%, 07/01/03 1,500 1,672
WASHINGTON, D.C.--0.4%
District of Columbia, Callable 06/01/98
@ 101.5 (GO) (MBIA)
6.750%, 06/01/01 200 211
WISCONSIN--5.3%
Milwaukee County, Callable 10/01/96
@ 100 (GO)
7.300%, 10/01/01 1,000 1,015
Milwaukee County, Callable 09/01/02
@ 100 (GO)
5.550%, 09/01/03 1,000 1,034
Oak Creek, Water Works System, Callable
06/01/96 @ 100 (RB)
5.600%, 12/01/96 25 25
State, Pre-refunded @ 100 (GO)
6.900%, 05/01/98 (B) 1,000 1,054
3,128
TOTAL MUNICIPAL BONDS
(Cost $55,753) 56,588
CASH EQUIVALENT--3.6%
Federated Tax Free Money Market 2,149 2,149
TOTAL CASH EQUIVALENT
(Cost $2,149) 2,149
TOTAL INVESTMENTS--99.5%
(Cost $57,902) $58,737
OTHER ASSETS AND LIABILITIES--0.5%
Other Assets and Liabilities, Net 273
NET ASSETS:
Portfolio shares--Institutional Class ($.0001
par value--20 billion authorized) based on
5,376,852 outstanding shares 56,231
Portfolio shares--Retail Class A ($.0001 par
value--20 billion authorized) based on 155,766
outstanding shares 1,670
Distribution in excess of net investment income (4)
Accumulated net realized gain on investments 278
Net unrealized appreciation of investments 835
TOTAL NET ASSETS:--100.0% $59,010
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER
SHARE--INSTITUTIONAL CLASS $ 10.67
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE--RETAIL
CLASS A $ 10.67
MAXIMUM SALES CHARGE OF 3.00%(1) 0.33
OFFERING PRICE PER SHARE--RETAIL CLASS A $11.00
</TABLE>
(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 March 31, 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) When Issued Security (Total Cost $1,000,000)
AMBAC--American Municipal Bond Assurance Company
AMT--Alternative Minimum Tax
CFC--National Rural Utilities Co-op Finance Corporation
CMI--California Municipal Insurers
FGIC--Financial Guaranty Insurance Corporation
FHA--Federal Housing Administration
FNMA--Federal National Mortgage Association
FPI--Foremost Pool Insurance
GNMA--Government National Mortgage Association
GO--General Obligation
MBIA--Municipal Bond Insurance Association
MLO--Municipal Lease Obligation
RB--Revenue Bond
STAID--State Aid Withholding
VA--Veterans Administration
The accompanying notes are an integral part of the financial statements.
COLORADO INTERMEDIATE TAX FREE FUND
Description Par (000)/Shares (000) Value (000)
<TABLE>
<CAPTION>
<S> <C> <C>
MUNICIPAL BONDS--98.4%
COLORADO--98.4%
Adams County, School District #12, Callable 12/15/03 @ 100
(GO) (FGIC)
6.200%, 12/15/08 $ 455 $ 481
Adams County, School District #12, Callable
12/15/96 @ 101 (GO)
7.650%, 12/15/03 975 1,011
Adams County, School District #50 (GO)
5.125%, 12/01/00 1,000 1,022
Arapahoe County, Cherry Creek School
District #5, Callable 12/15/00 @ 101 (GO)
6.800%, 12/15/01 1,000 1,104
Auraria, Higher Education Center, Callable
04/01/03 @ 101 (RB) (FSA)
5.000%, 04/01/05 500 491
Aurora, Callable 12/01/04 @ 101
(COP) (MLO)
6.000%, 12/01/06 1,000 1,031
Aurora, Community College Project (RB)
(MLO) (CLE)
5.750%, 10/15/04 500 519
Boulder County, Sales & Use Tax (RB) (FGIC)
5.750%, 12/15/05 1,000 1,038
Boulder Valley, School District #Re 2,
Callable 10/15/01 @ 100 (GO)
5.900%, 10/15/02 500 529
5.900%, 10/15/03 500 525
Boulder Valley, School District #Re 2,
Callable 12/01/04 @ 101, 12/01/06
@ 100 (GO) (STAID)
5.950%, 12/01/07 1,000 1,055
Boulder, Callable 10/01/01 @ 101 (GO)
5.700%, 10/01/04 250 262
Boulder, Larimer, & Weld Counties, Vrain
Valley School District #Re 1JT, Callable
12/15/02 @ 101 (GO) (MBIA)
6.000%, 12/15/10 1,000 1,037
Boulder, Larimer, & Weld Counties, Vrain
Valley School District, Pre-refunded
@ 101 (GO)
7.200%, 12/15/99 (B) 500 550
Boulder, Urban Renwal Tax Allocation
(RB) (MBIA)
5.700%, 03/01/00 1,250 1,295
Brighton, Callable 12/01/01 @ 101 (GO) (MBIA)
6.350%, 12/01/05 500 535
Broomfield, Callable 11/01/96 @ 101 (GO)
7.600%, 11/01/03 1,000 1,026
Centennial Water & Sanitation, Series A,
Callable 12/01/96 @ 101 (GO) (SWB)
4.750%, 12/01/97 500 504
Colorado Springs, Series A, Callable 11/15/01
@ 102 (RB)
6.625%, 11/15/04 1,000 1,104
6.500%, 11/15/15 995 1,073
Denver, City & County Airport, Series C,
Mandatory Put @ 100 (RB) (ST)
6.000%, 04/01/97 (C) $1,650 $1,677
Denver, City & County Airport, Series D
(RB) (MORG)
3.600%, 11/15/25 (A) 500 500
Denver, City & County School District #1,
Series A (GO)
5.200%, 12/01/03 250 254
Douglas & Elbert Counties, School District #1, Callable
12/15/04 @ 101 (GO) (MBIA)
6.400%, 12/15/11 1,000 1,060
Eagle, Garfield, & Routt Counties, School
District #50 J, Callable 12/01/04
@ 102 (GO) (FGIC)
6.125%, 12/01/09 1,290 1,354
El Paso County, School District #2 Harrison
(GO)
7.050%, 12/01/04 1,000 1,129
El Paso County, School District #20
(COP) (MLO)
6.100%, 12/01/99 250 262
Fort Collins, Callable 12/01/02 @ 101 (GO)
6.400%, 12/01/09 575 608
5.550%, 12/01/03 500 524
Garfield, Pitkin, & Eagle Counties, School
District #1 (GO) (MBIA)
6.000%, 12/15/04 1,000 1,076
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 1,019
Jefferson County, School District #R 1,
Callable 12/15/02 @ 101 (GO) (AMBAC)
5.900%, 12/15/04 1,000 1,062
La Plata County, School District #9 &
Durango, Callable 11/01/02
@ 101 (GO) (FGIC)
6.200%, 11/01/05 1,000 1,067
Larimer County, School District #R 1
Poudre (GO)
5.400%, 12/15/04 750 756
Larimer, Weld, & Boulder Counties,
School District #R 2J Thompson,
Callable 12/15/04 @ 100 (GO)
5.900%, 12/15/06 1,000 1,045
Louisville, Callable 06/01/98 @ 101
(GO) (FGIC)
7.200%, 12/01/04 465 492
Morgan City, Pollution Control, Series A,
Callable 6/01/03 @ 101, 6/01/04
@ 100 (RB) (MBIA)
5.500%, 06/01/12 500 485
Northglenn, Callable 11/01/96
@ 101 (GO) (MBIA)
6.400%, 11/01/98 $ 500 $ 511
7.125%, 11/01/06 500 511
Platte River Power Authority, Series BB
5.500%, 06/01/02 500 523
Poudre Valley, Hospital District, Pre-refunded
@ 101 (RB)
6.700%, 11/15/98 (B) 500 534
Pueblo County, Single Family Mortgages,
Callable 11/01/04 @ 102 (RB)
(FNMA/GNMA)
6.400%, 11/01/13 1,100 1,107
Pueblo (GO) (MBIA)
6.000%, 05/01/00 500 529
Pueblo, Urban Renewal Authority, Callable
12/01/03 @ 101 (RB) (AMBAC)
5.800%, 12/01/09 840 856
Regional Transit District (RB)
5.750%, 11/01/01 2,000 2,108
South Suburban Park & Recreation District
(GO) (MBIA)
0.000%, 12/15/01 1,000 760
State Board of Agriculture, Fort Lewis
College (RB) (FGIC)
6.000%, 10/01/02 250 266
State Housing Finance Authority, Multi-Family Housing,
Series A (RB) (FHA)
5.125%, 10/01/03 635 620
State Housing Finance Authority, Single Family
Mortgages, Series B-1 (RB) (AMT)
5.875%, 06/01/11 950 954
State Student Obligations Board Authority,
Series A (RB)
6.250%, 06/01/96 240 240
State Student Obligations Board Authority,
Series C (RB)
4.400%, 03/01/00 500 494
State Student Obligations Board Authority (RB)
4.800%, 12/01/99 500 504
State Water Resource & Power Development
Authority, Callable 09/01/02 @ 101 (RB) (FSA)
5.900%, 09/01/03 $ 250 $ 264
State Water Resource & Power Development
Authority, Clean Water Project,
Callable 09/01/02 @ 102 (RB)
5.800%, 09/01/06 1,000 1,059
Stonegate Village Metropolitan District,
Callable 12/01/02 @ 100 (GO)
6.300%, 12/01/04 500 533
Summit County, School District #Re 1,
Callable 12/01/04 @ 101 (GO) (FGIC)
6.450%, 12/01/08 1,250 1,386
Thornton (GO) (FGIC)
5.600%, 12/01/02 1,000 1,053
Thornton, Callable 12/01/02
@ 101 (GO) (FGIC)
5.650%, 12/01/03 1,000 1,056
University of Colorado, Callable 06/01/99 @
101 (RB)
6.800%, 06/01/02 300 320
University of Colorado, Hospital Authority
(RB) (AMBAC)
5.250%, 11/15/99 1,000 1,026
Ute Water Conservancy District, Callable
06/15/97 @ 100 (RB) (AMBAC)
7.700%, 06/15/02 1,000 1,034
Westminster, Water & Wastewater Utility
Enterprise, Callable 10/01/04
@ 100 (RB) (AMBAC)
5.800%, 12/01/05 1,000 1,045
TOTAL MUNICIPAL OBLIGATIONS
(Cost $48,276) 50,124
CASH EQUIVALENT--0.0%
Federated Tax Free Money Market 16 16
TOTAL CASH EQUIVALENT
(Cost $16) 16
TOTAL INVESTMENTS--98.4%
(Cost $48,292) 50,140
OTHER ASSETS AND LIABILITIES--1.6%
Other Assets and Liabilities, Net $ 803
NET ASSETS:
Portfolio shares--Institutional Class ($.0001
par value--2 billion authorized) based on
4,620,103 outstanding shares 46,357
Portfolio shares--Retail Class A ($.0001 par
value--2 billion authorized) based on 253,164
outstanding shares 2,623
Undistributed net investment income 7
Accumulated net realized gain on investments 108
Net unrealized appreciation of investments 1,848
TOTAL NET ASSETS:--100.0% $50,943
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER
SHARE--INSTITUTIONAL CLASS $ 10.45
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE--RETAIL
CLASS A $ 10.45
MAXIMUM SALES CHARGE OF 3.00%(1) 0.32
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 10.77
</TABLE>
(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 March 31, 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 Corporation
AMT--Alternative Minimum Tax
CLE--Connie Lee
COP--Certificates of Participation
FGIC--Financial Guaranty Insurance Corporation
FHA--Federal Housing Administration
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 Guaranty
RB--Revenue Bond
ST--Sumitomo Trust
STAID--State Aid Withholding
SWB--Swiss Bank
The accompanying notes are an integral part of the financial statements.
MINNESOTA INSURED INTERMEDIATE TAX FREE FUND
Description Par (000) Value (000)
<TABLE>
<CAPTION>
<S> <C> <C>
MUNICIPAL OBLIGATIONS--94.5%
MINNESOTA--94.5%
Anoka County, Capital Improvement,
Series C (GO)
5.550%, 02/01/05 $2,000 $2,050
Anoka-Hennepin, School District #11,
Callable 02/01/03 @100 (GO) (FGIC)
4.875%, 02/01/07 1,800 1,753
Becker, Pollution Control, Callable 04/01/99 @
102 (RB)
6.800%, 04/01/07 3,900 4,173
Becker, Tax Increment, Series D, Callable
08/01/04 @ 100 (GO) (AMT) (MBIA)
6.000%, 08/01/07 2,500 2,625
Bloomington, Mall of America Project,
Series A, Callable 02/01/04
@ 100 (RB) (FSA)
5.450%, 02/01/09 2,850 2,928
Coon Rapids, Multi-Family Housing,
Woodland North Apartments, Callable
12/01/03 @ 100 (RB) (FHA)
5.625%, 12/01/09 490 480
Coon Rapids, Single Family Mortgages,
Callable 09/01/04 @ 102 (RB)
5.900%, 09/01/06 395 400
Dakota County, Housing & Redevelopment
Authority, Callable 04/01/05 @ 102 (RB)
(AMT) (FNMA/GNMA)
6.000%, 10/01/14 1,375 1,353
Dakota County, Housing & Redevelopment
Authority, Single Family Mortgages,
Callable 09/01/98 @ 103 (RB)
(FHA/GNMA/VA)
7.250%, 03/01/06 725 725
Dakota, Washington, & Stearns Counties,
Single Family Mortgages, Callable
03/01/04 @ 102 (RB) (AMT) (FNMA)
6.000%, 09/01/04 650 662
Duluth, Economic Development Authority,
Health Care Facility, Pre-refunded
@ 102 (RB) (AMBAC)
6.100%, 11/01/01 (B) 250 273
Duluth, Economic Development Authority,
Health Care Facility, Unrefunded Balance,
Callable 11/01/02 @ 102 (RB) (AMBAC)
6.100%, 11/01/01 650 704
Minneapolis & St. Paul, Housing &
Redevelopment Authority, Health Care,
Callable 08/15/00 @ 102 (RB) (MBIA)
7.300%, 08/15/01 1,000 1,116
Minneapolis & St. Paul, Housing &
Redevelopment Authority, Health Care,
Series A (RB) (AMBAC)
4.600%, 11/15/02 500 491
Minneapolis & St. Paul, Housing Finance
Board, (RB) (AMT) (FNMA/GNMA)
6.800%, 11/01/08 1,500 1,612
Minneapolis & St. Paul, Housing Finance
Board, Single Family Mortgages, Series A
(RB) (AMT) (FHA/GNMA/VA)
7.875%, 12/01/12 $ 35 $ 35
Minneapolis & St. Paul, Metropolitan Airport,
Callable 01/01/99 @ 102 (RB) (AMT)
7.800%, 01/01/11 2,900 3,125
Minneapolis, Mortgage Revenue,
Callable 10/01/05 @ 100 (RB)
0.000%, 10/01/12 2,950 929
Minneapolis, Community Development
Agency (RB) (MBIA)
7.000%, 03/01/01 2,500 2,769
Minneapolis, Convention Center,
Pre-refunded @ 102 (RB) (AMBAC)
7.400%, 04/01/96 (B) 500 510
Minneapolis, Health Care Facilities,
Callable 11/15/03 @ 102 (RB) (MBIA)
5.100%, 11/15/05 1,000 996
Minneapolis, School District #1 (RB)
(MLO) (AMBAC)
5.300%, 02/01/02 1,000 1,019
Minnesota State Housing & Redevelopment
Authority, Single Family Mortgages,
Callable 04/01/04 @ 102 (RB)
(AMT) (FNMA)
6.250%, 10/01/04 1,065 1,082
Minnesota State Housing Finance Agency,
Rental Housing, Series D (RB) (MBIA)
5.150%, 08/01/04 1,000 1,004
Minnesota State Housing Finance Agency,
Single Family Mortgages, Series D,
Callable 01/01/04 @ 102 (RB) (AMBAC)
4.800%, 07/01/04 800 787
Minnesota State, Pre-refunded
@ 100 (GO)
6.800%, 08/01/98 (B) 2,790 2,954
Minnesota Tax-Exempt Mortgage Trust,
Series A (RB) (MLO) (NN)
5.173%, 08/01/96 (A) 101 102
Minnesota Tax-Exempt Mortgage Trust,
Series C (RB) (MLO) (NN)
6.775%, 09/01/10 (A) 795 784
Minnetonka, Multifamily Housing, Cliffs
Ridgedale (RB) (FNMA)
3.309%, 09/15/25 (A) 1,000 1,000
Northern Municipal Power Agency,
Minnesota Electric, Series A, Callable
01/01/03 @ 102 (RB) (AMBAC)
5.700%, 01/01/05 2,500 2,616
Northern Municipal Power Agency,
Minnesota Electric, Series A, Callable
01/01/99 @ 102 (RB) (AMBAC)
7.250%, 01/01/00 700 760
Olmsted County, Housing & Redevelopment
Authority, Pre-refunded @ 100 (RB)
7.000%, 02/01/01 (B) $1,025 $1,130
Olmsted County, Pre-refunded @ 100 (GO)
6.550%, 02/01/97 (B) 1,000 1,023
6.650%, 02/01/97 (B) 1,000 1,024
Osseo, Independent School District (GO)
5.700%, 02/01/03 2,000 2,050
Osseo, Independent School District, Callable
02/01/03 @ 100 (GO) (FGIC)
5.400%, 02/01/05 500 507
Plymouth Health Facilities, Callable 06/01/04
@ 102 (RB) (CGIC)
6.200%, 06/01/11 1,360 1,416
Robbinsdale, North Memorial Medical Center,
Series B (RB) (AMBAC)
5.100%, 05/15/03 1,000 1,019
Rochester, St. Mary's Hospital, Escrowed to
Maturity (RB)
5.750%, 10/01/07 3,000 3,154
Rosemount, Independent School District,
Series B (GO) (FGIC)
5.600%, 02/01/98 1,000 1,021
Southern Municipal Power Agency, Refunded
Balance, Series A, Callable 01/01/03
@ 102 (RB)
5.600%, 01/01/04 895 952
Southern Municipal Power Agency,
Series A (RB) (MBIA)
0.000%, 01/01/21 2,500 569
Southern Municipal Power Agency,
Series B (RB) (MBIA)
4.850%, 01/01/07 1,875 1,807
St. Louis Park, Hospital Revenue Facilities,
Methodist Hospital, Series C, Callable
07/01/00 @ 102 (AMBAC)
7.250%, 07/01/15 1,500 1,682
St. Louis Park, Hospital Revenue Facilities,
Methodist Hospital, Series C, Pre-refunded
@ 102 (RB) (AMBAC)
7.150%, 07/01/00 (B) 1,240 1,386
St. Paul, Callable 06/01/03 @ 100
(RB) (AMBAC)
5.350%, 12/01/04 800 810
St. Paul, Housing & Redevelopment Authority,
Callable 09/01/05 @ 102 (RB) (FNMA)
6.125%, 03/01/17 500 502
St. Paul, Housing & Redevelopment Authority,
St. Paul Heart & Lung Center Mandatory
Put @ 100 (RB)
4.700%, 12/01/00 (C) 500 496
St. Paul, Independent School District (RB)
6.125%, 02/01/00 1,025 1,085
Stearns County, Housing & Redevelopment
Authority, Callable 02/01/99 @ 102 (RB)
(MLO) (AMBAC)
6.750%, 02/01/04 $1,665 $ 1,779
Stillwater, Independent School District,
Callable 02/01/02 @ 100 (RB) (FGIC)
5.200%, 02/01/03 2,500 2,553
Washington County, Housing & Redevelopment
Authority, Jail Facility (RB)
6.400%, 02/01/00 1,000 1,070
Washington County, Housing & Redevelopment
Authority, Pre-refunded @ 100 (RB)
6.800%, 02/01/02 (B) 1,500 1,659
Washington County, Raymie Johnson
Apartments, Series C (GO) (FGIC)
6.000%, 01/01/10 1,340 1,382
Wayzata, Independent School District,
Series B, Callable 02/01/03 @ 100
(GO) (AMBAC)
4.900%, 02/01/07 2,000 1,942
Willmar, Independent School District,
Callable 02/01/02 @ 100 (GO) (AMBAC)
6.150%, 02/01/09 1,000 1,036
TOTAL MUNICIPAL OBLIGATIONS
(Cost $72,798) 74,871
CASH EQUIVALENT--2.4%
Federated Minnesota Municipal Cash Trust 1,876 1,876
TOTAL CASH EQUIVALENT
(Cost $1,876) 1,876
TOTAL INVESTMENTS--96.9%
(Cost $74,674) 76,747
OTHER ASSETS AND LIABILITIES--3.1%
Other Assets and Liabilities, Net 2,496
NET ASSETS:
Portfolio shares--Institutional Class ($.0001
par value--2 billion authorized) based on
7,626,389 outstanding shares $73,441
Portfolio shares--Retail Class A ($.0001 par
value--2 billion authorized) based on 360,984
outstanding shares 3,539
Distribution in excess of net investment income (4)
Accumulated net realized gain on investments 194
Net unrealized appreciation of investments 2,073
TOTAL NET ASSETS:--100.0% $79,243
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER
SHARE-- INSTITUTIONAL CLASS $ 9.92
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE--RETAIL
CLASS A $ 9.92
MAXIMUM SALES CHARGE OF 3.00% (1) 0.31
OFFERING PRICE PER SHARE--RETAIL CLASS A $10.23
</TABLE>
(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 March 31, 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 Corporation
AMT--Alternative Minimum Tax
CGIC--Capital Guaranty Insurance Company
FGIC--Financial Guaranty Insurance Corporation
FHA--Federal Housing Administration
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.
ASSET ALLOCATION FUND
Description Shares/Par (000) Value (000)
<TABLE>
<CAPTION>
<S> <C> <C>
COMMON STOCKS--59.4%
AEROSPACE & DEFENSE--0.6%
Lockheed Martin 1,352 $103
Loral 1,200 59
Raytheon 1,700 87
Rockwell International 1,500 88
337
AGRICULTURE--0.1%
Pioneer Hi-Bred International 600 32
AIR TRANSPORTATION--0.2%
AMR* 500 45
Delta Air Lines 300 23
Federal Express* 400 28
Southwest Airlines 1,000 30
U.S. Air Group* 400 7
133
AIRCRAFT--1.0%
Allied Signal 1,800 106
Boeing 2,200 191
General Dynamics 400 23
McDonnell Douglas 700 64
Northrop 300 19
Teledyne 300 8
Textron 600 48
United Technologies 900 101
560
APPAREL/TEXTILES--0.2%
Fruit of the Loom* 500 13
Liz Claiborne 500 17
Reebok International 500 14
Russell 200 5
Springs Industries, Cl A 100 5
V.F. 400 22
76
AUTOMOTIVE--1.5%
Chrysler 2,600 162
Dana 700 23
Eaton 600 36
Echlin 400 15
Fleetwood Enterprises 300 7
Ford Motor 7,200 248
General Motors 4,900 261
Navistar International* 500 5
Paccar 300 15
TRW 400 36
808
BANKS--4.5%
Banc One 2,937 105
Bank of Boston 700 35
Bank of New York 1,400 $ 72
BankAmerica 2,400 186
Bankers Trust New York 500 35
Barnett Banks 700 44
Boatmen's Bancshares 800 31
Chase Manhattan 1,200 88
Chemical Banking 1,700 120
Citicorp 3,000 240
Comerica 800 33
CoreStates Financial 1,000 42
First Bank System 800 48
First Chicago 2,205 92
First Interstate Bancorp 500 87
First Union 2,575 156
Fleet Financial Group 1,713 69
Golden West Financial 400 21
Great Western Financial 1,000 24
H.F. Ahmanson 800 19
J.P. Morgan 1,200 100
KeyCorp 1,600 62
MBNA 1,550 46
Mellon Bank 1,000 55
National City 1,000 35
NationsBank 1,900 152
Norwest 2,400 88
PNC Bank 2,300 71
Republic New York 400 24
Suntrust Banks 800 56
U.S. Bancorp 1,000 34
Wachovia 1,100 49
Wells Fargo 300 78
2,397
BEAUTY PRODUCTS--1.0%
Alberto-Culver, Cl B 100 4
Avon Products 400 34
Colgate-Palmolive 1,000 78
Ecolab 400 12
International Flavors & Fragrances 800 38
Procter & Gamble 4,500 381
547
BROADCASTING, NEWSPAPERS & ADVERTISING--0.4%
Comcast, Cl A 1,500 27
Interpublic Group 600 28
Tele-Communications, Cl A* 4,400 82
Viacom, Cl B* 2,314 98
235
BUILDING & CONSTRUCTION--0.2%
Centex 100 3
Fluor 500 34
Foster Wheeler 200 9
Halliburton 800 46
Kaufman & Broad Home 200 $ 3
Owens Corning* 300 12
Pulte 100 3
110
CHEMICALS--1.9%
Air Products & Chemicals 800 44
Dow Chemical 1,700 148
E.I. du Pont de Nemours 3,600 299
Eastman Chemical 600 41
FMC* 200 15
Great Lakes Chemical 500 34
Hercules 800 50
Monsanto 700 107
Morton International 1,000 38
Nalco Chemical 400 12
PPG Industries 1,200 59
Praxair 900 36
Rohm & Haas 400 27
Union Carbide 900 45
W.R. Grace 600 47
1,002
COMMUNICATIONS EQUIPMENT--0.8%
Andrew* 300 11
DSC Communications* 800 22
General Signal 300 11
Harris 300 19
ITT Industries 800 20
Motorola 4,000 212
Northern Telecom 1,600 76
Scientific-Atlanta 500 9
Tellabs* 600 29
409
COMPUTERS & SERVICES--2.0%
Amdahl 800 7
Apple Computer 900 22
Bay Networks* 1,300 40
Cabletron Systems* 500 33
Ceridian* 500 22
Compaq Computer* 1,800 70
Cray Research* 100 3
Data General* 200 3
Digital Equipment* 900 50
Hewlett Packard 3,300 310
IBM 3,700 411
Intergraph* 300 5
Pitney Bowes 1,100 54
Silicon Graphics* 1,100 27
Tandem Computers* 800 7
Tandy 400 19
Unisys* 1,100 7
1,090
CONSUMER PRODUCTS--0.0%
Brown Group 100 $ 1
Stride Rite 300 3
4
CONTAINERS & PACKAGING--0.1%
Ball 200 6
Bemis 300 9
Crown Cork & Seal 600 29
Newell 1,100 29
73
DRUGS--4.9%
Abbott Laboratories 5,200 212
Allergan 400 15
Alza, Cl A* 600 18
American Home Products 2,000 217
Amgen* 1,800 105
Bristol-Myers Squibb 3,300 283
Eli Lilly 3,058 199
Johnson & Johnson 4,200 387
Mallinckrodt Group 600 23
Merck 8,100 504
Pfizer 4,100 275
Pharmacia & Upjohn* 4,250 169
Schering Plough 2,500 145
Warner Lambert 900 93
2,645
ELECTRICAL SERVICES--2.1%
American Electric Power 1,300 54
Baltimore Gas & Electric 1,000 28
Carolina Power & Light 1,100 41
Central & South West 1,400 40
Cinergy 1,100 33
Consolidated Edison New York 1,500 48
Dominion Resources of Virginia 1,100 44
DTE Energy 1,000 34
Duke Power 1,400 71
Edison International 3,000 51
Entergy 1,500 42
FPL Group 1,200 54
General Public Utilities 800 26
Houston Industries 1,800 39
Niagara Mohawk Power 900 6
Northern States Power 500 24
Ohio Edison 1,100 25
Pacific Gas & Electric 2,900 66
Pacificorp 1,900 40
PECO Energy 1,400 37
PP&L Resources 1,100 27
Public Service Enterprise Group 1,600 44
Raychem 300 19
Southern 4,500 107
Texas Utilities 1,400 $ 58
Thomas & Betts 100 8
Unicom 1,500 40
Union Electric 700 29
1,135
ENTERTAINMENT--0.6%
Bally Entertainment* 300 5
Harrah's Entertainment* 750 22
King World Productions* 200 8
Walt Disney 4,500 287
322
ENVIRONMENTAL SERVICES--0.3%
Browning Ferris Industries 1,400 44
Laidlaw, Cl B 2,000 21
WMX Technologies 3,300 105
170
FINANCIAL SERVICES--1.6%
American Express 3,300 163
Beneficial 400 23
Dean Witter Discover 1,146 66
FHLMC 1,100 94
FNMA 7,200 229
H & R Block 700 25
Household International 600 40
ITT Hartford Group 800 39
Merrill Lynch 1,200 73
Morgan Stanley Group 1,100 57
Salomon 800 30
Transamerica 528 40
879
FOOD, BEVERAGE & TOBACCO--5.2%
Adolph Coors, Cl B 200 4
American Brands 1,300 55
Anheuser Busch 1,600 108
Archer Daniels Midland 3,592 66
Brown Forman, Cl B 500 20
Campbell Soup 1,700 103
Coca Cola 8,400 694
ConAgra 1,600 65
CPC International 1,000 69
General Mills 1,000 58
H.J. Heinz 2,350 78
Hershey Foods 500 37
Kellogg 1,400 106
PepsiCo 5,200 329
Philip Morris 5,500 483
Quaker Oats 900 30
Ralston-Ralston Purina Group 800 54
Sara Lee 3,300 108
Seagram 2,400 78
Unilever, ADR 1,100 $ 149
UST 1,200 38
Whitman 700 17
William Wrigley Jr. 800 47
2,796
GAS/NATURAL GAS--0.5%
Coastal 700 28
Columbia Gas Systems 300 14
Consolidated Natural Gas 700 30
Eastern Enterprises 100 4
Enron 1,700 63
Nicor 300 8
Noram Energy 800 7
Oneok 100 2
Pacific Enterprises 600 16
Panhandle Eastern 900 28
Peoples Energy 200 6
Sonat 600 22
Williams 700 35
263
HOME APPLIANCES--0.2%
Maytag 700 14
Sherwin Williams 600 27
Snap-On Tools 200 9
Stanley Works 300 16
Whirlpool 500 28
94
HOTELS & LODGING--0.1%
Hilton Hotels 300 28
HOUSEHOLD FURNITURE & FIXTURES--0.1%
Masco 1,100 32
HOUSEHOLD PRODUCTS--0.3%
Clorox 300 26
Gillette 2,900 150
Premark International 400 21
197
INSURANCE--2.4%
Aetna Life & Casualty 800 60
Alexander & Alexander Services 300 6
Allstate 2,917 123
American General 1,400 48
American International Group 3,125 293
Chubb 600 56
Cigna 500 57
General Re 500 73
Jefferson-Pilot 450 24
Lincoln National 700 36
Loew's 800 61
Marsh & McLennan 500 $ 46
Providian 700 31
Safeco 900 30
St. Paul 600 33
Torchmark 500 23
Travelers 2,035 134
United Healthcare 1,200 74
Unum 500 30
USF&G 700 11
U.S. Healthcare 1,100 50
U.S. Life 200 6
1,305
JEWELRY, PRECIOUS METALS--0.0%
Jostens 200 4
LEISURE--0.0%
Brunswick 600 14
LUMBER & WOOD PRODUCTS--0.0%
Louisiana-Pacific 800 20
MACHINERY--3.0%
Applied Materials* 1,200 42
Baker Hughes 1,000 29
Black & Decker 600 23
Briggs & Stratton 200 9
Case 500 25
Caterpillar 1,400 95
Cincinnati Milacron 200 5
Crane 200 8
Cummins Engine 200 8
Deere 1,800 75
Dover 800 36
Dresser Industries 1,300 40
Emerson Electric 1,400 113
General Electric 11,000 857
Giddings & Lewis 200 4
Harnischfeger Industries 300 12
Ingersoll Rand 800 33
Nacco Industries, Cl A 100 6
Outboard Marine 100 2
McDermott International 300 6
Pall 800 20
Parker Hannifin 450 17
Tenneco 1,200 67
Timken 200 9
Trinova 200 6
Tyco International 1,100 39
Varity* 200 9
1,595
MEASURING DEVICES--0.2%
Honeywell 900 $ 50
Johnson Controls 300 22
Millipore 300 11
Perkin Elmer 200 11
Tektronix 200 7
101
MEDICAL PRODUCTS & SERVICES--1.1%
C.R. Bard 300 11
Bausch & Lomb 400 15
Baxter International 1,900 86
Becton Dickinson 400 33
Beverly Enterprises* 600 6
Biomet* 800 11
Boston Scientific* 1,200 55
Columbia/HCA Healthcare 3,037 175
Community Psychiatric Centers* 200 2
Humana* 1,100 28
Manor Care 400 16
Medtronic 1,600 95
St. Jude Medical 450 17
Tenet Healthcare* 1,400 29
United States Surgical 300 10
589
METALS & MINING--0.1%
Cyprus AMAX Minerals 650 18
Freeport-McMoran Copper & Gold, Cl B 1,400 44
62
MISCELLANEOUS BUSINESS SERVICES--2.2%
3Com 1,000 40
Autodesk 300 11
Automatic Data Processing 1,700 67
Cisco Systems* 3,600 167
Computer Associates International 1,500 107
Computer Sciences* 400 28
CUC International* 1,250 37
First Data 1,500 106
Microsoft* 3,900 402
Novell* 2,500 33
Ogden 300 6
Oracle* 2,800 132
Safety-Kleen 400 6
Shared Medical Systems 100 6
Sun Microsystems* 1,300 57
1,205
MISCELLANEOUS CONSUMER SERVICES--0.1%
Service International 800 39
MULTI-INDUSTRY--0.6%
Corning 1,600 $ 56
Dial 700 20
ITT* 800 48
Minnesota Mining & Manufacturing 2,700 175
National Service Industries 300 11
310
OIL--DOMESTIC--0.7%
Ashland Oil 400 15
Atlantic Richfield 1,100 131
Kerr-McGee 400 25
Louisiana Land & Exploration 200 9
Pennzoil 300 12
Phillips Petroleum 1,800 71
Sun 491 14
Unocal 1,700 57
USX-Marathon Group 2,000 39
373
OIL--INTERNATIONAL--4.2%
Amerada Hess 700 39
Amoco 3,200 231
Chevron 4,300 241
Exxon 8,200 669
Mobil 2,600 301
Royal Dutch Petroleum, ADR 3,500 494
Schlumberger 1,700 135
Texaco 1,700 146
2,256
PAPER & PAPER PRODUCTS--1.0%
Avery Dennison 400 22
Boise Cascade 300 13
Champion International 700 32
Earthgrains 64 2
Georgia Pacific 600 42
International Paper 1,600 63
James River 500 13
Kimberly Clark 1,802 134
Mead 400 22
Potlatch 200 8
Stone Container 600 8
Temple Inland 400 19
Union Camp 500 25
Westvaco 700 21
Weyerhaeuser 1,400 65
Willamette Industries 400 24
513
PETROLEUM & FUEL PRODUCTS--0.3%
Burlington Resources 900 33
Enserch 400 7
Helmerich & Payne 100 3
Occidental Petroleum 2,200 $ 59
Oryx Energy* 700 10
Rowan* 500 6
Santa Fe Energy Resources* 600 6
Western Atlas* 400 24
148
PHOTOGRAPHIC EQUIPMENT & SUPPLIES--0.5%
Eastman Kodak 2,200 156
Polaroid 300 14
Xerox 800 100
270
PRECIOUS METALS--0.4%
Barrick Gold 2,400 73
Echo Bay Mines 800 11
Homestake Mining 1,000 19
Newmont Mining 673 38
Placer Dome Group 1,500 43
Santa Fe Pacific Gold* 900 14
198
PRINTING & PUBLISHING--0.8%
American Greetings, Cl A 500 14
Deluxe 600 19
Dow Jones 700 27
Gannett 1,000 67
John H. Harland 200 4
Knight-Ridder 300 20
McGraw-Hill 300 26
Meredith 100 4
Moore 700 14
New York Times, Cl A 600 17
R.R. Donnelley & Sons 1,100 38
Time Warner 2,500 102
Times Mirror, Cl A 800 32
Tribune 400 26
410
PROFESSIONAL SERVICES--0.1%
Dun & Bradstreet 1,200 73
EG&G 300 7
80
RAILROADS--0.6%
Burlington Northern Santa Fe 979 80
Consolidated Rail 500 36
CSX 1,300 59
Norfolk Southern 800 68
Union Pacific 1,400 96
339
REPAIR SERVICES--0.0%
Ryder System 500 $ 14
RETAIL--3.5%
Albertson's 1,700 63
American Stores 1,000 33
Charming Shoppes 700 4
Circuit City 600 18
Darden Restaurants* 1,000 14
Dayton Hudson 500 42
Dillard Department Stores 800 28
Federated Department Stores* 1,400 45
Gap 900 50
Giant Food 400 13
Great Atlantic & Pacific Tea 200 6
Harcourt General 500 23
Hasbro 600 22
Home Depot 3,133 150
J.C. Penney 1,400 70
Kmart* 3,100 29
Kroger* 900 36
Limited 1,360 26
Longs Drug Stores 100 5
Lowe's 1,100 39
Luby's Cafeterias 100 2
Marriott 900 43
Mattel 1,718 47
May Department Stores 1,700 82
McDonald's 4,500 216
Melville 700 25
Mercantile Stores 200 12
Nordstrom 600 29
Pep Boys -- Manny, Moe & Jack 400 13
Price/Costco* 1,200 23
Rite Aid 600 19
Ryan's Family Steak Houses* 400 4
Sears Roebuck 2,500 122
Shoney's* 300 3
TJX 500 13
Toys "R" Us* 1,900 51
Wal-Mart Stores 15,100 349
Walgreen 1,700 55
Wendy's International 800 15
Winn Dixie Stores 900 30
Woolworth* 900 14
1,883
RUBBER & PLASTIC--0.5%
Armstrong World Industries 300 19
B.F. Goodrich 100 8
Cooper Tire & Rubber 500 13
Goodyear Tire & Rubber 1,100 56
Illinois Tool Works 800 52
Nike, Cl B 900 73
Rubbermaid 1,100 31
252
SEMI-CONDUCTORS/INSTRUMENTS--1.0%
Advanced Micro Devices* 900 $ 16
AMP 1,500 62
Intel 5,400 307
LSI Logic* 900 24
Micron Technology 1,300 41
National Semiconductor* 900 12
Texas Instruments 1,300 66
528
SPECIALTY MACHINERY--0.2%
Cooper Industries 803 31
Westinghouse Electric 2,700 52
83
STEEL & STEEL WORKS--0.6%
Alcan Aluminum 1,500 48
Aluminum Company of America 1,200 75
Armco* 700 4
Asarco 200 7
Bethlehem Steel* 700 9
Engelhard 1,000 23
Inco 800 25
Inland Steel Industries 300 7
Nucor 600 36
Phelps Dodge 500 34
Reynolds Metals 400 24
USX-U.S. Steel Group 600 21
Worthington Industries 600 12
325
TELEPHONES & TELECOMMUNICATION--4.6%
Airtouch Communications* 3,200 100
Alltel 1,300 40
Ameritech 3,600 196
AT&T 10,500 643
Bell Atlantic 2,800 173
BellSouth 6,500 241
GTE 6,500 285
MCI Communications 4,400 133
NYNEX 2,800 140
Pacific Telesis Group 2,900 80
SBC Communications 4,000 210
Sprint 2,400 91
U.S. West 3,200 104
U.S. West Media Group* 3,200 66
2,502
TRUCKING--0.0%
Caliber System 200 9
Consolidated Freightways 300 8
Yellow 100 1
18
WHOLESALE--0.3%
Alco Standard 800 $ 42
Fleming 200 3
Genuine Parts 900 41
Handleman 200 1
Sigma Aldrich 300 17
Supervalu 500 15
Sysco 1,200 39
W.W. Grainger 400 27
185
TOTAL COMMON STOCKS
(Cost $24,956) 31,995
U.S. TREASURY OBLIGATION--10.7%
U.S. Treasury Note
6.500%, 05/15/05 $5,740 5,771
TOTAL U.S. TREASURY OBLIGATION
(Cost $5,915) 5,771
MASTER NOTES--7.5%
Associates Corporation of North America
5.233%, 04/01/96 (A) 2,025 2,025
Goldman Sachs
5.460%, 04/01/96 (A) 2,040 2,040
TOTAL MASTER NOTES
(Cost $4,065) 4,065
REPURCHASE AGREEMENTS--21.7%
J.P. Morgan 5.345%, dated 03/29/96,
matures 04/01/96, repurchase price
$4,667,759 (collateralized by various
U.S. Treasury STRIPS, total par
value $18,511,977, 11/15/96-05/15/22: total
market value $4,758,995) 4,665 4,665
Merrill Lynch 5.450%, dated 03/29/96, matures
04/01/96, repurchase price
$7,057,943(collateralized by various
U.S. Treasury Bills, total par value $179,226,
01/09/97-03/06/97: various U.S. Treasury
Bonds, total par value $5,205,680,
7.625%-14.000%, 05/15/05-08/15/13: total
market value $7,195,834) 7,055 7,055
TOTAL REPURCHASE AGREEMENTS
(Cost $11,720) 11,720
TOTAL INVESTMENTS--99.3%
(Cost $46,656) 53,551
OTHER ASSETS AND LIABILITIES--0.7%
OTHER ASSETS AND LIABILITIES, NET 353
NET ASSETS:
Portfolio shares--Institutional Class ($.0001 par value--2
billion authorized) based on
4,259,267 outstanding shares $43,232
Portfolio shares--Retail Class A ($.0001 par value--2
billion authorized) based on
117,888 outstanding shares 1,264
Portfolio shares--Retail Class B ($.0001 par value--2
billion authorized) based on
125,542 outstanding shares 1,436
Undistributed net investment income 31
Accumulated net realized gain on investments 1,046
Net unrealized appreciation of investments 6,895
TOTAL NET ASSETS:--100.0% $53,904
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER
SHARE--INSTITUTIONAL CLASS $ 11.97
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE--RETAIL
CLASS A $ 11.98
MAXIMUM SALES CHARGE OF 4.50%(1) 0.56
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 12.54
NET ASSET VALUE AND OFFERING PRICE PER SHARE--RETAIL CLASS
B (2) $ 11.93
</TABLE>
* Non-income producing security
(1) The offer price is calculated by dividing the net asset value by1 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) Variable Rate Security with Demand Features--the rate reported on the
Statement of Net Assets is the rate in effect as of March 31, 1996. The
date shown is the longer of the reset or demand date.
ADR--American Depository Receipt
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
STRIPS--Separate Trading of Registered Interest and Principal of
Securities
The accompanying notes are an integral part of the financial statements.
BALANCED FUND
Description Shares/Par (000) Value (000)
<TABLE>
<CAPTION>
<S> <C> <C>
COMMON STOCKS--51.6%
AUTOMOTIVE--0.9%
General Motors 45,400 $ 2,418
BANKS--2.8%
BayBanks 16,900 1,817
Chemical Banking 49,600 3,497
Citicorp 26,500 2,120
7,434
CHEMICALS--5.1%
Hercules 38,600 2,393
Monsanto 28,100 4,313
Olin 31,200 2,714
W.R. Grace 49,300 3,858
13,278
COMMUNICATIONS EQUIPMENT--1.3%
Nokia, ADR 98,200 3,363
COMPUTERS & SERVICES--3.1%
Compaq Computer* 43,900 1,696
Cray Research* 88,500 2,577
IBM 35,600 3,956
8,229
CONTAINERS & PACKAGING--1.8%
Ball 74,500 2,310
Bemis 76,200 2,391
4,701
DRUGS--2.0%
American Home Products 30,300 3,284
Bristol-Myers Squibb 21,800 1,866
TOTAL DRUGS 5,150
FINANCIAL SERVICES--1.1%
Household International 42,200 2,838
FOOD, BEVERAGE & TOBACCO--3.2%
ConAgra 75,600 3,071
Dole Food 67,900 2,614
Sara Lee 80,600 2,630
8,315
HOUSEHOLD PRODUCTS--0.5%
Premark International 23,700 1,271
INSURANCE--3.6%
AMBAC 38,900 1,872
Cigna 25,200 2,879
General Re 11,800 1,720
TIG Holdings 88,200 2,867
9,338
LEISURE--1.1%
Brunswick 131,400 $ 3,022
MACHINERY--2.6%
Case Equipment 65,000 3,307
General Electric 43,300 3,372
6,679
MULTI-INDUSTRY--2.6%
Corning 97,500 3,413
Minnesota Mining & Manufacturing 22,300 1,447
National Service Industries 3,900 141
U.S. Industries* 83,500 1,733
6,734
OIL--DOMESTIC--1.0%
Unocal 78,400 2,617
OIL--INTERNATIONAL--4.6%
Amerada Hess 41,000 2,255
Exxon 26,300 2,147
Mobil 24,400 2,827
Royal Dutch Petroleum, ADR 18,700 2,641
Texaco 26,300 2,262
12,132
PAPER & PAPER PRODUCTS--0.8%
James River 76,000 1,957
PHOTOGRAPHIC EQUIPMENT & SUPPLIES--1.4%
Eastman Kodak 50,700 3,600
PRINTING & PUBLISHING--2.0%
Knight-Ridder 55,000 3,747
Times Mirror, Cl A 40,700 1,602
5,349
RAILROADS--2.9%
Canadian Pacific 117,400 2,348
Consolidated Rail 33,000 2,363
CSX 62,000 2,829
7,540
REAL ESTATE INVESTMENT TRUSTS--2.3%
DeBartolo Realty 87,800 1,317
Duke Realty Investments 42,100 1,268
Equity Residential Properties Trust 59,600 1,863
Simon Property Group 68,000 1,564
6,012
RETAIL--1.0%
Sears Roebuck 55,200 2,691
SEMI-CONDUCTORS/INSTRUMENTS--2.2%
AMP 58,800 $ 2,433
SGS-Thomson Microelectronics* 40,100 1,454
Texas Instruments 37,100 1,887
5,774
SPECIALTY MACHINERY--0.5%
York International 29,400 1,441
TELEPHONES & TELECOMMUNICATION--0.7%
Century Telephone Enterprises 56,800 1,803
WHOLESALE--0.5%
W.W. Grainger 19,000 1,275
TOTAL COMMON STOCKS
(Cost $107,521) 134,961
U.S. TREASURY OBLIGATIONS--29.7%
U.S. Treasury Bond
7.125%, 02/15/23 $17,225 17,747
U.S. Treasury Notes
5.500%, 04/30/96 17,850 17,852
6.000%, 08/31/97 13,190 13,242
5.125%, 11/30/98 9,100 8,923
6.250%, 08/31/00 8,495 8,531
5.625%, 11/30/00 6,200 6,073
6.250%, 02/15/03 1,840 1,835
7.250%, 08/15/04 2,775 2,928
U.S. Treasury STRIPS
0.000%, 02/15/99 265 224
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $78,045) 77,355
CORPORATE OBLIGATIONS--5.5%
Bear Stearns
9.125%, 04/15/98 770 809
8.750%, 03/15/04 1,150 1,272
Cigna
7.400%, 01/15/03 2,825 2,864
Farmers Group
8.250%, 07/15/96 1,045 1,053
General Foods
6.000%, 06/15/01 860 843
General Motors Acceptance
7.650%, 01/16/98 2,375 2,431
Santander Financial Issuances
6.800%, 07/15/05 3,450 3,381
Torchmark
7.875%, 05/15/23 1,700 1,679
TOTAL CORPORATE OBLIGATIONS
(Cost $14,380) 14,332
OTHER MORTGAGE-BACKED OBLIGATIONS--2.2%
Drexel Burnham Lambert Trust CMO Trust S 2
9.000%, 08/01/18 418 441
GE Capital Mortgage Services 1994-11 A1
6.500%, 03/25/24 $ 1,621 $ 1,616
GE Capital Mortgage Services 1994-17 A6
7.000%, 05/25/24 2,675 2,595
Residential Funding 1992-36 A2
5.700%, 11/25/07 541 535
RTC 1991-M6 (B)
7.000%, 06/25/21 512 507
TOTAL OTHER MORTGAGE-BACKED OBLIGATIONS
(Cost $5,472) 5,694
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED OBLIGATIONS--2.0%
FHLMC
6.000%, 11/15/08 2,700 2,557
FNMA
5.450%, 10/25/18 2,700 2,587
TOTAL U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED OBLIGATIONS
(Cost $5,297) 5,144
ASSET-BACKED SECURITIES--0.5%
BW Home Equity Trust Pool 1990-1 A
9.250%, 09/15/05 40 41
Household Finance 1993-2 A3
4.650%, 12/20/08 1,264 1,231
TOTAL ASSET-BACKED SECURITIES
(Cost $1,302) 1,272
MASTER NOTE--1.2%
Goldman Sachs (A)
5.460%, 4/01/96 3,050 3,050
TOTAL MASTER NOTE
(Cost $3,050) 3,050
REPURCHASE AGREEMENTS--7.8%
J.P. Morgan 5.345%, dated 03/29/96, matures
04/01/96, repurchase price $9,883,186
(collateralized by various U.S. Treasury
STRIPS, total par value $39,195,960,
11/15/96-05/15/22: total market value
$10,076,362) 9,879 9,879
Merrill Lynch 5.450%, dated 03/29/96, matures
04/01/96, repurchase price $10,547,516
(collateralized by various U.S. Treasury
Bills, total par value $267,838,
01/09/97-03/06/97: various U.S. Treasury
Bonds, total par value $7,779,461,
7.625%-14.000%, 05/15/05-08/15/13: total
market value $10,753,583) 10,543 10,543
TOTAL REPURCHASE AGREEMENTS
(Cost $20,422) 20,422
TOTAL INVESTMENTS--100.5%
(Cost $235,489) 262,230
OTHER ASSETS AND LIABILITIES--(0.5%)
Other Assets and Liabilities, Net $ (1,410)
NET ASSETS:
Portfolio shares--Institutional Class ($.0001 par
value--2 billion authorized) based on
18,771,164 outstanding shares 202,474
Portfolio shares--Retail Class A ($.0001 par value--2
billion authorized) based on
1,395,731 outstanding shares 14,771
Portfolio shares--Retail Class B ($.0001 par value--2
billion authorized) based on
608,589 outstanding shares 7,292
Undistributed net investment income 240
Accumulated net realized gain on investments 9,302
Net unrealized appreciation of investments 26,741
TOTAL NET ASSETS:--100.0% $260,820
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER
SHARE--INSTITUTIONAL CLASS $ 12.56
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE--RETAIL
CLASS A $ 12.55
MAXIMUM SALES CHARGE OF 4.50%(1) 0.59
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 13.14
NET ASSET VALUE AND OFFERING PRICE PER SHARE--RETAIL CLASS
B (2) $ 12.51
</TABLE>
* 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) Variable Rate Security with Demand Features--the rate reported on the
Statement of Net Assets is the rate in effect as of March 31, 1996. The
date shown is the longer of the reset date or the demand date.
(B) 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.
ADR--American Depository Receipt
AMBAC--American Municipal Bond Assurance Corporation
CMO--Collateralized Mortgage Obligation
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
RTC--Resolution Trust Corporation
STRIPS--Separate 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)
<TABLE>
<CAPTION>
<S> <C> <C>
COMMON STOCKS--97.4%
REAL ESTATE INVESTMENT TRUSTS--97.4%
HEALTHCARE FACILITIES--10.4%
Health & Retirement Property Trust 20,400 $ 352
Health Care Property Investors 6,300 198
National Health Investors 11,500 374
Nationwide Health Properties 16,200 340
1,264
HOTELS--8.8%
Felcor Suite Hotels 11,000 341
Hospitality Properties Trust 14,600 390
Patriot American Hospitality 13,000 343
1,074
OFFICE/INDUSTRIAL--33.6%
Cali Realty 17,200 385
Duke Realty Investments 12,900 389
Highwoods Properties 13,000 362
Liberty Property Trust 17,600 363
Security Capital Industrial Trust 20,400 357
Shurgard Storage Centers 13,200 347
Sovran Self Storage 13,900 377
Spieker Properties 15,500 393
Storage Trust 17,100 380
Storage USA 11,400 392
Weeks 13,700 343
4,088
RESIDENTIAL--25.2%
Bay Apartment Communities 15,200 367
Chateau Properties 13,300 303
Equity Residential Properties Trust 11,600 362
Evans Withycombe Residential 15,700 365
Post Properties 9,000 293
ROC Communities 14,400 338
Summit Properties 16,200 324
Sun Communities 14,200 387
Wellsford Real Estate 15,600 341
3,080
RETAIL--19.4%
CBL & Associates Properties 14,200 300
DeBartolo Realty 22,300 335
Developers Diversified Realty 6,100 179
Excel Realty Trust 11,800 229
Federal Realty Investment Trust 7,500 167
JDN Realty 8,200 182
Macerich 16,300 320
Mid-America Realty Investments 33,900 284
Simon Property Group 15,800 363
2,359
TOTAL COMMON STOCKS
(Cost $11,235) 11,865
REPURCHASE AGREEMENT--0.7%
Merrill Lynch 5.450%, dated 03/29/96, matures
04/01/96, repurchase price
$85,391(collateralized by various U.S.
Treasury Bills, total par value $2,168,
01/09/97-03/06/97: various U.S. Treasury
Bonds, total par value $62,981,
7.625%-14.000%, 05/15/05-08/15/13: total
market value $87,059 $ 85 $ 85
TOTAL REPURCHASE AGREEMENT
(Cost $85) 85
TOTAL INVESTMENTS--98.1%
(Cost $11,320) 11,950
OTHER ASSETS AND LIABILITIES, NET--1.9%
OTHER ASSETS AND LIABILITIES, NET 229
NET ASSETS:
Portfolio shares--Institutional Class ($.0001 par value--2
billion authorized) based on 1,089,884 outstanding shares 11,249
Portfolio shares--Retail Class A ($.0001 par value--2
billion authorized) based on 20,665 outstanding shares 221
Portfolio shares--Retail Class B ($.0001 par value--2
billion authorized) based on 16,715 outstanding shares 173
Distributions in excess of net investment income (85)
Accumulated net realized loss on investments (9)
Net unrealized appreciation of investments 630
TOTAL NET ASSETS:--100.0% $12,179
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER
SHARE--INSTITUTIONAL CLASS $ 10.81
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE--RETAIL
CLASS A $ 10.80
MAXIMUM SALES CHARGE OF 4.50%(1) 0.51
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 11.31
NET ASSET VALUE AND OFFERING PRICE PER SHARE--RETAIL CLASS
B (2) $ 10.75
</TABLE>
(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.
The accompanying notes are an integral part of the financial statements.
SCHEDULE OF INVESTMENTS--MARCH 31, 1996 (Unaudited)
EQUITY INDEX FUND
Description Par (000) Value (000)
<TABLE>
<CAPTION>
<S> <C> <C>
COMMON STOCKS--88.8%
AEROSPACE & DEFENSE--0.9%
Lockheed Martin 11,127 $ 844
Loral 9,600 470
Raytheon 13,400 687
Rockwell International 12,000 707
2,708
AGRICULTURE--0.1%
Pioneer Hi-Bred International 4,600 242
AIR TRANSPORTATION--0.4%
AMR* 4,200 376
Delta Air Lines 2,800 215
Federal Express* 3,100 217
Southwest Airlines 7,900 234
U.S. Air Group* 3,400 62
1,104
AIRCRAFT--1.6%
Allied Signal 15,700 928
Boeing 19,000 1,646
General Dynamics 3,500 205
McDonnell Douglas 6,200 568
Northrop 2,700 172
Teledyne 3,000 84
Textron 4,700 376
United Technologies 6,800 763
4,742
APPAREL/TEXTILES--0.3%
Fruit of the Loom* 4,200 109
Liz Claiborne 4,100 140
Reebok International 4,200 116
Russell 2,100 56
Springs Industries 1,100 51
V.F. 3,500 193
665
AUTOMOTIVE--2.2%
Chrysler 21,200 1,320
Dana 5,600 187
Eaton 4,300 259
Echlin 3,300 120
Fleetwood Enterprises 2,500 62
Ford Motor 59,500 2,045
General Motors 41,400 2,204
Navistar International* 4,200 44
Paccar 2,095 102
TRW 3,600 321
6,664
BANKS--6.6%
Banc One 25,213 898
Bank of Boston 6,200 308
Bank of New York 11,100 572
BankAmerica 20,500 $ 1,589
Bankers Trust New York 4,300 305
Barnett Banks 5,400 336
Boatmen's Bancshares 8,700 341
Chase Manhattan 9,900 728
Chemical Banking 13,900 980
Citicorp 26,800 2,144
Comerica 6,300 263
CoreStates Financial 7,700 326
First Bank System 8,100 483
First Chicago 17,764 737
First Interstate Bancorp 4,200 729
First Union 15,600 944
Fleet Financial Group 14,700 595
Golden West Financial 3,200 172
Great Western Financial 7,500 181
H.F. Ahmanson 6,500 158
J.P. Morgan 10,400 863
KeyCorp 13,100 506
MBNA 12,300 364
Mellon Bank 7,350 405
National City 8,100 284
NationsBank 16,400 1,314
Norwest 19,600 720
PNC Bank 19,000 584
Republic New York 3,100 184
Suntrust Banks 6,300 441
U.S. Bancorp 8,400 286
Wachovia 9,400 421
Wells Fargo 2,700 705
19,866
BEAUTY PRODUCTS--1.6%
Alberto-Culver, Cl B 1,500 58
Avon Products 3,800 326
Colgate-Palmolive 8,100 631
Dial 5,200 146
Ecolab 3,500 105
International Flavors & Fragrances 6,100 292
Procter & Gamble 38,000 3,220
4,778
BROADCASTING, NEWSPAPERS & ADVERTISING--0.6%
Comcast, Cl A 13,300 235
Interpublic Group 4,300 203
Tele-Communications, Cl A* 36,200 672
Viacom, Cl B* 19,990 842
1,952
BUILDING & CONSTRUCTION--0.4%
Centex 1,500 47
Fluor 4,600 314
Foster Wheeler 2,200 98
Halliburton 6,300 358
Kaufman & Broad Home 1,700 $ 27
Owens Corning* 2,800 112
Pulte 1,400 38
994
CHEMICALS--2.9%
Air Products & Chemicals 6,200 339
B.F. Goodrich 1,400 111
Dow Chemical 14,500 1,260
Eastman Chemical 4,475 309
E.I. duPont de Nemours 30,800 2,556
FMC* 2,000 150
Great Lakes Chemical 3,600 243
Hercules 6,200 384
Monsanto 6,400 982
Morton International 8,200 315
Nalco Chemical 3,800 117
PPG Industries 10,900 533
Praxair 7,700 307
Rohm & Haas 3,700 246
Union Carbide 7,600 377
W.R. Grace 5,400 423
8,652
COMMUNICATIONS EQUIPMENT--1.1%
Andrew* 3,100 119
DSC Communications* 6,300 170
Harris 2,100 130
ITT Industries* 12,400 316
Motorola 32,700 1,733
Northern Telecom 14,100 673
Scientific-Atlanta 4,200 75
Tellabs* 4,900 237
3,453
COMPUTERS & SERVICES--3.0%
Amdahl 6,600 56
Apple Computer 6,700 165
Bay Networks* 10,100 311
Cabletron Systems* 4,000 265
Ceridian* 3,700 159
Compaq Computer* 14,700 568
Cray Research* 1,400 41
Data General* 2,000 29
Digital Equipment* 8,300 457
Hewlett Packard 28,400 2,670
IBM 31,500 3,500
Intergraph* 2,500 40
Pitney Bowes 8,400 412
Silicon Graphics* 8,900 222
Tandem Computers* 6,400 57
Tandy 3,480 161
Unisys* 9,400 56
9,169
CONSUMER PRODUCTS--0.0%
Stride Rite 2,700 $ 25
CONTAINERS & PACKAGING--0.2%
Ball 1,600 50
Bemis 2,900 91
Crown Cork & Seal* 6,900 336
Newell 8,800 235
712
DRUGS--7.4%
Abbott Laboratories 43,800 1,785
Allergan 3,600 133
Alza, Cl A* 4,500 138
American Home Products 17,400 1,886
Amgen* 14,800 860
Bristol-Myers Squibb 28,100 2,406
Eli Lilly 31,788 2,066
Johnson & Johnson 35,900 3,312
Mallinckrodt Group 4,200 158
Merck 68,500 4,264
Pfizer 35,200 2,358
Pharmacia & Upjohn 27,925 1,114
Schering Plough 20,400 1,186
Warner Lambert 7,500 774
22,440
ELECTRICAL SERVICES--3.0%
American Electric Power 10,300 430
Baltimore Gas & Electric 8,100 224
Carolina Power & Light 8,500 317
Central & South West 11,400 325
Cinergy 8,673 260
Consolidated Edison New York 13,000 414
Dominion Resources of Virginia 9,600 380
DTE Energy 8,000 269
Duke Power 11,400 576
Edison International 24,700 423
Entergy 12,600 353
FPL Group 10,300 466
General Public Utilities 6,600 218
Houston Industries 14,500 314
Niagara Mohawk Power 7,900 52
Northern States Power 3,700 180
Ohio Edison 8,400 190
Pacific Gas & Electric 23,500 532
Pacificorp 15,700 328
PECO Energy 12,300 327
PP&L Resources 8,800 214
Public Service Enterprise Group 13,600 374
Southern 36,900 881
Texas Utilities 12,500 517
Unicom 11,900 321
Union Electric Power 5,600 230
9,115
ENTERTAINMENT--0.8%
Bally Entertainment* 2,600 $ 45
King World Productions* 2,000 83
Walt Disney 36,300 2,318
2,446
ENVIRONMENTAL SERVICES--0.5%
Browning Ferris Industries 11,800 372
Laidlaw, Cl B 16,300 173
WMX Technologies 26,900 854
1,399
FINANCIAL SERVICES--2.5%
American Express 26,900 1,328
Beneficial 2,900 167
Dean Witter Discover 9,386 537
FHLMC 10,000 853
FNMA 60,500 1,928
Household International 5,400 363
ITT* 6,800 408
ITT Hartford Group* 6,900 338
Merrill Lynch 9,800 595
Morgan Stanley Group 8,600 445
Salomon Brothers 5,900 221
Transamerica 3,823 286
7,469
FOOD, BEVERAGE & TOBACCO--7.7%
Adolph Coors, Cl B 2,000 36
American Brands 10,100 428
Anheuser Busch 14,100 950
Archer Daniels Midland 29,392 540
Brown Forman, Cl B 3,800 152
Campbell Soup 13,800 840
CPC International 8,100 562
Coca Cola 69,500 5,742
ConAgra 13,200 536
General Mills 8,800 514
H.J. Heinz 20,450 677
Hershey Foods 4,300 320
Kellogg 12,100 917
PepsiCo 43,700 2,764
Philip Morris 46,600 4,089
Quaker Oats 7,400 247
Ralston-Ralston Purina Group 5,900 395
Sara Lee 26,800 874
Seagram 20,700 670
Unilever, ADR 8,900 1,208
UST 10,700 341
Whitman 5,800 141
William Wrigley Jr. 6,400 375
23,318
GAS/NATURAL GAS--0.7%
Coastal 5,800 $ 229
Columbia Gas System 2,800 128
Consolidated Natural Gas 5,100 222
Eastern Enterprises 1,100 39
Enron 13,900 513
Enserch 3,800 62
Nicor 2,700 72
Noram Energy 6,800 63
Oneok 1,500 36
Pacific Enterprises 4,600 119
Panhandle Eastern 8,300 258
Peoples Energy 1,900 62
Sonat 4,700 169
Williams 5,600 282
2,254
HOME APPLIANCES--0.3%
Maytag 6,000 121
Raychem 2,400 155
Sherwin Williams 4,700 209
Snap-On Tools 2,200 103
Thomas & Betts 1,100 82
Whirlpool 4,100 227
897
HOTELS & LODGING--0.2%
Harrah's Entertainment 5,600 164
Hilton Hotels 2,700 254
418
HOUSEHOLD FURNITURE & FIXTURES--0.1%
Masco 8,900 258
HOUSEHOLD PRODUCTS--0.6%
Brown Group 900 12
Clorox 2,900 250
Gillette 24,600 1,273
Premark International 3,300 177
Stanley Works 2,500 138
1,850
INSURANCE--3.6%
Aetna Life & Casualty 6,300 476
Alexander & Alexander Services 2,400 45
Allstate 24,850 1,047
American General 11,300 390
American International Group 26,325 2,465
Chubb 4,800 451
Cigna 4,200 480
General Re 4,600 670
Jefferson-Pilot 3,875 209
Lincoln National 5,800 294
Loews 6,500 $ 492
Marsh & McLennan 4,100 381
Providian 5,300 236
Safeco 7,000 234
St. Paul 4,700 261
Torchmark 3,950 178
Travelers 17,725 1,170
United Healthcare 9,700 596
Unum 4,000 238
USF&G 6,200 96
USLife 1,900 56
U.S. Healthcare 8,500 390
10,855
LEISURE--0.0%
Jostens 2,100 47
LUMBER & WOOD PRODUCTS--0.0%
Louisiana-Pacific 5,900 144
MACHINERY--4.5%
Applied Materials* 9,900 345
Baker Hughes 7,800 228
Black & Decker 4,700 178
Briggs & Stratton 1,600 69
Brunswick 5,300 122
Case Equipment 4,000 204
Caterpillar 11,000 748
Cincinnati Milacron 1,800 47
Crane 1,600 65
Cummins Engine 2,200 89
Deere 14,500 605
Dover 6,300 288
Dresser Industries 10,100 308
Emerson Electric 12,500 1,009
General Electric 92,500 7,203
General Signal 2,600 94
Giddings & Lewis 1,900 36
Harnischfeger Industries 2,600 101
Ingersoll Rand 6,000 245
McDermott International 3,000 58
Nacco Industries, Cl A 500 28
Outboard Marine 1,100 21
Pall 6,300 161
Parker Hannifin 4,050 152
Tenneco 9,900 553
Timken 1,700 78
Trinova 1,600 51
Tyco Laboratories 8,500 304
Varity* 2,200 95
13,485
MEASURING DEVICES--0.3%
Honeywell 7,000 387
Johnson Controls 2,200 164
Perkin Elmer 2,300 $ 124
Millipore 2,500 96
Tektronix 1,800 59
830
MEDICAL PRODUCTS & SERVICES--1.6%
Bausch & Lomb 3,100 115
Baxter International 15,300 692
Becton Dickinson 3,600 295
Beverly Enterprises* 5,400 59
Biomet* 6,300 88
Boston Scientific* 9,600 442
Columbia/HCA Healthcare 24,637 1,423
Community Psychiatric* 2,300 19
C.R. Bard 3,200 114
Humana 8,900 224
Manor Care 3,400 133
Medtronic 12,800 763
St. Jude Medical* 3,850 144
Tenet Healthcare* 11,000 231
United States Surgical 3,100 101
4,843
METALS & MINING--0.2%
Cyprus AMAX Minerals 5,050 143
Freeport-McMoran Copper & Gold, Cl B* 11,200 354
497
MISCELLANEOUS BUSINESS SERVICES--3.4%
3Com 9,100 363
Autodesk 2,600 98
Automatic Data Processing 16,000 630
Cisco Systems* 30,300 1,405
Computer Associates International 13,450 963
Computer Sciences* 3,100 218
CUC International* 9,850 288
First Data 12,400 874
Microsoft* 32,800 3,383
Novell* 20,500 274
Oracle Systems* 24,050 1,133
Safety Kleen 3,200 46
Shared Medical Systems 1,300 78
Sun Microsystems* 10,500 459
10,212
MISCELLANEOUS CONSUMER SERVICES--0.2%
H & R Block 5,800 210
Service International 6,300 307
517
MULTI-INDUSTRY--0.2%
Corning 12,700 445
National Service Industries 2,600 94
539
OIL--DOMESTIC--1.0%
Ashland Oil 3,500 $ 134
Atlantic Richfield 8,900 1,059
Kerr-McGee 2,800 178
Louisiana Land & Exploration 1,800 84
Pennzoil 2,500 99
Phillips Petroleum 14,500 573
Sun 4,174 121
Unocal 13,700 457
USX Marathon Group 15,900 306
3,011
OIL--INTERNATIONAL--5.9%
Amerada Hess 5,100 281
Amoco 27,500 1,987
Chevron 36,200 2,032
Exxon 68,800 5,616
Mobil 21,900 2,538
Royal Dutch Petroleum, ADR 29,700 4,195
Texaco 14,700 1,264
17,913
PAPER & PAPER PRODUCTS--1.9%
Avery Dennison 2,900 157
Boise Cascade 2,600 109
Champion International 5,300 240
Earthgrains 564 17
Georgia Pacific 5,100 354
International Paper 14,100 555
James River 4,500 116
Kimberly Clark 15,450 1,151
Mead 2,900 157
Minnesota Mining & Manufacturing 23,300 1,512
Potlatch 1,600 68
Stone Container 5,300 74
Temple Inland 3,100 145
Union Camp 3,800 189
Westvaco 5,600 164
Weyerhaeuser 11,300 521
Willamette Industries 3,000 181
5,710
PETROLEUM & FUEL PRODUCTS--0.7%
Burlington Resources 7,000 260
Helmerich & Payne 1,400 47
Occidental Petroleum 17,600 471
Oryx Energy* 5,800 80
Rowan* 4,600 59
Santa Fe Energy Resources* 4,900 51
Schlumberger 13,400 1,060
Western Atlas* 2,900 174
2,202
PHOTOGRAPHIC EQUIPMENT & SUPPLIES--0.7%
Eastman Kodak 19,000 1,349
Polaroid 2,500 113
Xerox 6,000 753
2,215
PRECIOUS METALS--0.5%
Barrick Gold 19,600 $ 595
Echo Bay Mines 6,900 93
Homestake Mining 7,600 147
Newmont Mining 5,243 297
Placer Dome 13,200 381
Santa Fe Pacific Gold* 7,240 116
1,629
PRINTING & PUBLISHING--1.1%
American Greetings, Cl A 4,100 113
Deluxe 4,500 141
Dow Jones 5,300 204
Gannett 7,800 525
John H. Harland 1,600 35
Knight-Ridder 2,700 184
McGraw Hill 2,700 234
Meredith 1,500 62
Moore 5,500 107
New York Times, Cl A 5,300 154
R.R. Donnelley & Sons 8,500 293
Time Warner 21,400 875
Times Mirror, Cl A 6,200 244
Tribune 3,500 231
3,402
PROFESSIONAL SERVICES--0.2%
Dun & Bradstreet 9,400 570
EG&G 2,700 60
Ogden 2,700 53
683
RAILROADS--1.0%
Burlington Northern Santa Fe 7,908 649
Conrail 4,300 308
CSX 11,700 534
Norfolk Southern 7,200 612
Union Pacific 11,400 782
2,885
REPAIR SERVICES--0.0%
Ryder System 4,400 120
RETAIL--5.2%
Albertson's 14,000 520
American Stores 8,100 267
Charming Shoppes 5,700 29
Circuit City Stores 5,300 158
Darden Restaurants* 8,700 117
Dayton Hudson 4,000 340
Dillard Department Stores, Cl A 6,200 215
Federated Department Stores* 11,200 361
Gap 8,000 443
Giant Food, Cl A 3,200 106
Great Atlantic & Pacific Tea 2,100 $ 65
Harcourt General 4,000 182
Hasbro 4,800 178
Home Depot 26,433 1,265
J.C. Penney 12,500 622
Kmart 25,400 238
Kroger* 6,800 275
Limited 9,192 175
Longs Drug Stores 1,100 52
Lowe's 8,900 318
Luby's Cafeterias 1,200 28
Marriott International 6,900 328
Mattel 15,281 414
May Department Stores 13,800 666
McDonald's 38,500 1,848
Melville 5,800 208
Mercantile Stores 2,000 123
Nordstrom 4,500 218
Pep Boys-Manny Moe & Jack 3,400 114
Price/Costco* 10,800 203
Rite Aid 4,600 142
Ryan's Family Steak Houses* 2,900 26
Sears Roebuck 21,600 1,053
Shoney's* 2,200 20
TJX 4,000 101
Toys "R" Us* 15,100 408
Wal-Mart Stores 127,200 2,942
Walgreen 13,600 444
Wendy's International 6,500 118
Winn Dixie Stores 8,300 279
Woolworth 7,400 116
15,725
RUBBER & PLASTIC--0.7%
Armstrong World Industries 2,000 124
Cooper Tire & Rubber 4,600 118
Goodyear Tire & Rubber 8,500 434
Illinois Tool Works 6,500 420
Nike, Cl B 7,900 642
Rubbermaid 8,700 247
1,985
SEMI-CONDUCTORS/INSTRUMENTS--1.5%
Advanced Micro Devices* 7,200 124
AMP 12,052 499
Intel 45,600 2,594
LSI Logic 7,100 190
Micron Technology 11,400 358
National Semiconductor* 7,500 104
Texas Instruments 10,500 534
4,403
SPECIALTY MACHINERY--0.2%
Cooper Industries 5,928 $ 231
Westinghouse Electric 23,000 443
674
STEEL & STEEL WORKS--0.9%
Alcan Aluminium 12,500 403
Aluminum Company of America 9,800 614
Armco* 5,800 31
Asarco 2,400 84
Bethlehem Steel* 6,200 81
Engelhard 7,912 185
Inco 6,600 209
Inland Steel Industries 2,700 67
Nucor 4,800 284
Phelps Dodge 3,800 261
Reynolds Metals 3,500 207
USX-U.S. Steel Group 4,500 156
Worthington Industries 5,050 100
2,682
TELEPHONES & TELECOMMUNICATION--7.0%
Airtouch Communications* 27,400 853
Alltel 10,500 326
Ameritech 30,700 1,673
AT&T 88,200 5,402
Bell Atlantic 24,300 1,501
BellSouth 55,000 2,035
GTE 53,700 2,356
MCI Communications 37,600 1,137
NYNEX 23,700 1,182
Pacific Telesis Group 23,700 655
SBC Communications 33,800 1,779
Sprint 19,300 733
U.S. West 26,100 845
U.S. West Media Group* 26,100 538
21,015
TRUCKING--0.1%
Caliber System 2,100 90
Consolidated Freightways 2,400 61
Yellow 1,500 19
170
WHOLESALE--0.5%
Alco Standard 6,200 323
Fleming 2,000 28
Genuine Parts 6,750 304
Handleman 1,800 9
Sigma Aldrich 2,700 155
Supervalu 3,700 114
Sysco 10,100 332
W.W. Grainger 2,800 188
1,453
TOTAL COMMON STOCKS
(Cost $204,902) 267,436
U.S. TREASURY OBLIGATION--0.2%
U.S. Treasury Bill (A)
5.066%, 06/20/96 $ 700 $ 692
TOTAL U.S. TREASURY OBLIGATION
(Cost $692) 692
REPURCHASE AGREEMENTS--5.3%
J.P. Morgan 5.345%, dated 03/29/96, matures
04/01/96, repurchase price $5,389,302
(collateralized by various U.S. Treasury
STRIPS, total par value $21,373,561,
11/15/96-05/15/22: total market value
$5,494,641) 5,387 5,387
Merrill Lynch 5.450%, dated 03/29/96, matures
04/01/96, repurchase price $10,420,886
(collateralized by various U.S. Treasury
Bills, total par value $264,623,
01/09/97-03/06/97: U.S. Treasury Bonds, total
par value $7,686,063, 7.625%- 14.000%,
05/15/05-08/15/13: total market value
$10,624,478) 10,416 10,416
TOTAL REPURCHASE AGREEMENTS
(Cost $15,803) 15,803
TOTAL INVESTMENTS--94.3%
(Cost $221,397) $283,931
</TABLE>
* Non-income producing security
(A) Security has been deposited as initial margin on open futures contract.
ADR--American Depository Receipt
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
STRIPS--Separate Trading of Registered Interest and Principal of
Securities
The accompanying notes are an integral part of the financial statements.
STATEMENTS OF NET ASSETS--MARCH 31, 1996 (Unaudited)
EQUITY INCOME FUND
Description Shares/Par (000) Value (000)
<TABLE>
<CAPTION>
<S> <C> <C>
COMMON STOCKS--71.7%
BANKS--6.0%
Bank of New York 37,000 $1,905
National City 57,000 2,002
3,907
CHEMICALS--2.1%
E.I. du Pont de Nemours 16,000 1,328
DRUGS--5.7%
Abbott Laboratories 35,000 1,426
Johnson & Johnson 17,000 1,568
Pfizer 11,000 737
3,731
ELECTRICAL SERVICES--4.8%
Cinergy 19,000 570
DTE Energy 40,000 1,345
FPL Group 27,000 1,222
3,137
FINANCIAL SERVICES--1.1%
American Express 15,000 741
FOOD, BEVERAGE & TOBACCO--7.3%
PepsiCo 17,000 1,075
Philip Morris 28,500 2,501
Sara Lee 36,000 1,175
4,751
GAS/NATURAL GAS--0.6%
Enron 11,000 406
HOUSEHOLD PRODUCTS--2.5%
Newell 61,000 1,632
INSURANCE--2.4%
IPC Holdings* 41,000 856
Providian 16,000 714
1,570
MACHINERY--6.9%
General Electric 42,000 3,271
Tenneco 22,000 1,229
4,500
MINING--2.1%
Great Northern Iron Ore Properties 27,400 1,332
MISCELLANEOUS BUSINESS SERVICES--1.5%
General Motors, Cl E 16,893 963
OIL--INTERNATIONAL--9.8%
Amoco 32,600 $2,355
Exxon 19,000 1,551
Mobil 21,000 2,433
6,339
RAILROADS--1.7%
Union Pacific 16,000 1,098
REAL ESTATE INVESTMENT TRUSTS--11.4%
Crescent Real Estate Equity 26,000 874
Healthcare Realty Trust 58,000 1,269
Manufactured Home Communities 57,000 1,012
National Golf Properties 68,000 1,725
Simon Property Group 56,000 1,288
Weeks 48,000 1,200
7,368
RETAIL--4.1%
Intimate Brands 38,000 736
J.C. Penney 38,000 1,891
2,627
TELEPHONES & TELECOMMUNICATION--1.7%
AT&T 18,000 1,102
TOTAL COMMON STOCKS
(Cost $37,766) 46,532
PREFERRED CONVERTIBLE STOCKS--5.1%
AUTOMOTIVE--3.4%
Ford Motor, Series A, $4.20 19,500 2,184
STEEL & STEEL WORKS--1.7%
AK Steel, $2.1525 29,000 1,106
TOTAL PREFERRED CONVERTIBLE STOCKS
(Cost $2,676) 3,290
PREFERRED STOCK--0.7%
INSURANCE--0.7%
FHP International, Cl A 15,000 420
TOTAL PREFERRED STOCK
(Cost $349) 420
CONVERTIBLE BONDS--12.4%
Conner Peripherals, 41.6660 Shares
6.500%, 03/01/02 $ 1,775 2,004
General Instrument, 42.1052 Shares
5.000%, 06/15/00 1,200 1,450
Hometown Buffet, 73.2600 Shares
7.000%, 12/01/02 1,900 2,033
INTEGRATED HEALTH SERVICES, 31.1284 SHARES
6.000%, 01/01/03 $ 700 $ 661
Price, 44.3754 Shares
6.750%, 03/01/01 1,075 1,094
Tenet Healthcare, 25.9403 Shares
6.000%, 12/01/05 750 829
TOTAL CONVERTIBLE BONDS
(Cost $7,768) 8,071
REPURCHASE AGREEMENTS--9.4%
J.P. Morgan 5.345%, dated 03/29/96, matures
04/01/96, repurchase price $2,503,292
(collateralized by various U.S. Treasury
STRIPS, total par value $9,927,864,
11/15/96-05/15/22: total market value
$2,552,221) 2,502 2,502
Merrill Lynch 5.450%, dated 03/29/96, matures
04/01/96, repurchase price $3,617,240
(collateralized by various U.S. Treasury
Bills, total par value $91,854,
01/09/97-03/06/97: U.S. Treasury Bonds, total
par value $2,667,944, 7.625%- 14.000%,
05/15/05-08/15/13: total market value
$3,687,910) 3,616 3,616
TOTAL REPURCHASE AGREEMENTS
(Cost $6,118) 6,118
TOTAL INVESTMENTS--99.3%
(Cost $54,677) 64,431
OTHER ASSETS AND LIABILITIES--0.7%
Other Assets and Liabilities, Net 466
NET ASSETS:
Portfolio shares--Institutional Class ($.0001 par value--2
billion authorized) based on
4,948,285 outstanding shares $50,063
Portfolio shares--Retail Class A ($.0001 par value--2
billion authorized) based on
192,558 outstanding shares 2,057
Portfolio shares--Retail Class B ($.0001 par value--2
billion authorized) based on
205,663 outstanding shares 2,278
Undistributed net investment income 68
Accumulated net realized gain on investments 677
Net unrealized appreciation of investments 9,754
TOTAL NET ASSETS:--100.0% $64,897
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER
SHARE--INSTITUTIONAL CLASS $ 12.14
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE--RETAIL
CLASS A $ 12.13
MAXIMUM SALES CHARGE OF 4.50%(1) 0.57
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 12.70
NET ASSET VALUE AND OFFERING PRICE PER SHARE--RETAIL CLASS
B (2) $ 12.09
</TABLE>
* 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.
STRIPS--Separate Trading of Registered Interest and Principal of
Securities
The accompanying notes are an integral part of the financial statements.
SCHEDULE OF INVESTMENTS--MARCH 31, 1996 (Unaudited)
DIVERSIFIED GROWTH FUND
Description Shares/Par (000) Value (000)
<TABLE>
<CAPTION>
<S> <C> <C>
COMMON STOCKS--87.1%
AUTOMOTIVE--2.4%
Ford Motor 137,000 $ 4,709
BANKS--4.0%
Bank of New York 33,000 1,699
BankAmerica 35,000 2,713
Citicorp 47,000 3,760
8,172
BROADCASTING, NEWSPAPERS &
ADVERTISING--1.1%
Tele-Communications, Cl A* 124,000 2,302
CHEMICALS--2.3%
E.I. duPont de Nemours 56,000 4,648
COMMUNICATIONS EQUIPMENT--1.7%
Nokia, ADR 102,000 3,494
COMPUTERS & SERVICES--4.9%
Cisco Systems* 170,000 7,884
Seagate Technology* 38,000 2,080
9,964
DRUGS--6.5%
Abbott Laboratories 99,000 4,034
Johnson & Johnson 53,500 4,935
Pfizer 64,000 4,288
13,257
ELECTRICAL SERVICES--0.9%
DTE Energy 56,000 1,883
ENERGY & POWER--1.5%
Thermo Electron* 52,000 3,094
FINANCIAL SERVICES--4.3%
American Express 65,000 3,209
FNMA 175,000 5,578
8,787
FOOD, BEVERAGE & TOBACCO--4.7%
PepsiCo 52,000 3,289
Philip Morris 47,000 4,124
Sara Lee 66,000 2,153
9,566
GAS/NATURAL GAS--0.8%
Enron 42,000 1,549
GLASS PRODUCTS--1.6%
Corning 95,000 3,325
HOUSEHOLD PRODUCTS--1.0%
Newell 76,000 $ 2,033
INSURANCE--1.3%
United Healthcare 41,000 2,522
MACHINERY--6.2%
Case Equipment 37,000 1,882
General Electric 89,000 6,931
Tenneco 69,000 3,855
12,668
MEASURING DEVICES--0.6%
MTS Systems 34,000 1,275
MEDICAL PRODUCTS & SERVICES--5.0%
Columbia/HCA Healthcare 90,000 5,197
Medtronic 79,000 4,710
Vencor* 9,000 311
10,218
MISCELLANEOUS BUSINESS SERVICES--7.7%
First Data 28,000 1,974
General Motors, Cl E 34,000 1,938
Informix* 66,000 1,741
Microsoft* 36,000 3,712
Oracle* 119,000 5,608
Synopsys* 21,000 672
15,645
OIL--INTERNATIONAL--6.0%
Amoco 52,000 3,757
Exxon 41,000 3,346
Mobil 34,000 3,940
Union Texas Petroleum 53,000 1,047
12,090
PAPER & PAPER PRODUCTS--1.3%
Weyerhaeuser 56,000 2,583
PRINTING & PUBLISHING--1.9%
News, ADR 167,000 3,841
RAILROADS--1.5%
Southern Pacific Rail* 129,000 3,032
REAL ESTATE INVESTMENT TRUSTS--2.9%
DeBartolo Realty 107,000 1,605
National Golf Properties 63,000 1,599
Simon Property Group 108,000 2,484
5,688
RETAIL--4.8%
Intimate Brands 212,000 $ 4,108
McDonald's 118,000 5,664
9,772
SEMI-CONDUCTORS/INSTRUMENTS--1.2%
Intel 44,000 2,503
SERVICES--PREPACKAGED SOFTWARE--0.2%
Peoplesoft* 8,500 489
SPECIALTY MACHINERY--2.4%
York International 99,000 4,851
STEEL & STEEL WORKS--1.0%
AK Steel Holding 52,000 2,074
TELEPHONES & TELECOMMUNICATION--4.0%
Airtouch Communications* 58,000 1,805
L.M. Ericsson Telephone, ADR 91,000 1,945
Tele Danmark, ADR 22,000 569
Vodafone, ADR 100,000 3,750
8,069
TRUCKING--1.4%
Fritz* 74,000 2,886
TOTAL COMMON STOCKS
(Cost $142,652) 176,989
CONVERTIBLE BOND--0.9%
General Instrument, 42.1052 shares
5.000%, 06/15/00 $ 1,500 1,813
TOTAL CONVERTIBLE BOND
(Cost $1,921) 1,813
REPURCHASE AGREEMENTS--10.5%
J.P. Morgan 5.345%, dated 03/29/96, matures
04/01/96, repurchase price $10,711,323
(collateralized by various U.S. Treasury
STRIPS, total par value $42,480,287,
11/15/96-05/15/22: total market value
$10,920,685) 10,707 10,707
Merrill Lynch 5.450%, dated 03/29/96, matures
04/01/96, repurchase price $10,695,362
(collateralized by various U.S. Treasury
Bills, total par value $271,593,
01/09/97-03/06/97: various U.S. Treasury
Bonds, total par value $7,888,507,
7.625%-14.000%, 05/15/05-08/15/13: total
market value $10,904,317) 10,690 10,690
TOTAL REPURCHASE AGREEMENTS
(Cost $21,397) 21,397
TOTAL INVESTMENTS--98.5%
(Cost $165,970) $200,199
</TABLE>
* Non-income producing security
ADR--American Depository Receipt
FNMA--Federal National Mortgage Association
STRIPS--Separate Trading of Registered Interest and Principal of
Securities
The accompanying notes are an integral part of the financial statements.
STATEMENTS OF NET ASSETS--MARCH 31, 1996 (Unaudited)
STOCK FUND
Description Shares/Par (000) Value (000)
<TABLE>
<CAPTION>
<S> <C> <C>
COMMON STOCKS--87.2%
AEROSPACE & DEFENSE--0.1%
Lockheed Martin 7,000 $ 531
AIR TRANSPORTATION--0.1%
Southwest Airlines 17,500 518
AUTOMOTIVE--1.6%
General Motors 127,800 6,806
BANKS--4.8%
Bank of New York 10,000 515
BayBanks 48,000 5,162
Chemical Banking 140,200 9,886
Citicorp 74,000 5,921
21,484
CHEMICALS--8.5%
Hercules 111,600 6,921
Monsanto 80,400 12,347
PPG Industries 8,500 415
Olin 86,800 7,551
W.R. Grace 134,800 10,547
37,781
COMMUNICATIONS EQUIPMENT--2.2%
Nokia, ADR 279,700 9,582
COMPUTERS & SERVICES--5.2%
Compaq Computer* 125,300 4,839
Cray Research* 240,800 7,013
IBM 100,600 11,185
23,037
CONTAINERS & PACKAGING--3.0%
Ball 207,900 6,447
Bemis 214,600 6,736
13,183
DRUGS--3.5%
American Home Products 84,300 9,136
Baxter International 11,600 525
Bristol-Myers Squibb 62,800 5,378
Merck 8,400 523
15,562
ELECTRICAL SERVICES--0.1%
Rochester Gas & Electric 13,500 292
Southwestern Public Service 11,600 386
678
FINANCIAL SERVICES--1.8%
Household International 117,700 7,917
FOOD, BEVERAGE & TOBACCO--5.4%
ConAgra 219,200 8,907
Dole Food 194,100 7,475
Sara Lee 233,700 7,627
24,009
HOUSEHOLD PRODUCTS--0.8%
Premark International 67,100 $ 3,598
INSURANCE--6.0%
AMBAC 107,500 5,174
Cigna 72,100 8,240
General Re 33,600 4,901
TIG Holdings 253,100 8,230
26,545
LEISURE--1.9%
Brunswick 375,100 8,630
MACHINERY--5.2%
Case Equipment 186,700 9,508
General Electric 124,000 9,658
York International 85,800 4,203
23,369
MEDICAL PRODUCTS & SERVICES--0.1%
Bausch & Lomb 7,300 270
METALS & MINING--0.0%
Santa Fe Pacific Gold* 300 5
Vulcan Materials 3,800 215
220
MISCELLANEOUS BUSINESS SERVICES--0.1%
Rollins 12,050 282
MULTI-INDUSTRY--4.2%
Corning 272,100 9,533
Minnesota Mining & Manufacturing 59,300 3,847
National Service Industries 8,000 290
U.S. Industries* 234,700 4,869
18,539
OIL--DOMESTIC--1.7%
Unocal 224,400 7,486
OIL--INTERNATIONAL--7.8%
Amerada Hess 114,000 6,270
Amoco 7,300 527
Exxon 75,500 6,162
Mobil 68,500 7,936
Royal Dutch Petroleum, ADR 52,700 7,444
Texaco 75,300 6,472
34,811
PAPER & PAPER PRODUCTS--1.3%
James River 217,900 5,612
PHOTOGRAPHIC EQUIPMENT & SUPPLIES--2.3%
Eastman Kodak 143,800 $10,220
PRINTING & PUBLISHING--3.5%
Knight-Ridder 160,600 10,947
Times Mirror, Cl A 113,600 4,473
15,420
RAILROADS--4.7%
Canadian Pacific 333,300 6,667
Consolidated Rail 92,700 6,640
CSX 172,100 7,863
21,170
REAL ESTATE INVESTMENT TRUSTS--3.9%
DeBartolo Realty 237,900 3,569
Duke Realty Investments 120,100 3,619
Equity Residential Properties Trust 179,800 5,619
Simon Property Group 193,400 4,448
17,255
RETAIL--1.7%
Sears Roebuck 151,400 7,380
SEMI-CONDUCTORS/INSTRUMENTS--3.7%
AMP 163,700 6,774
Intel 4,800 273
SGS-Thomson Microelectronics* 118,500 4,298
Texas Instruments 103,300 5,258
16,603
TELEPHONES & TELECOMMUNICATION--1.2%
Century Telephone Enterprises 159,200 5,054
U.S. West 8,800 285
U.S. West Media Group* 8,800 182
5,521
WHOLESALE--0.8%
W.W. Grainger 53,200 3,572
TOTAL COMMON STOCKS
(Cost $316,569) 387,591
MASTER NOTES--3.5%
Associates Corporation of North America
5.233%, 4/1/96 (A) $ 5,717 5,717
Goldman Sachs
5.460%, 4/1/96 (A) 9,744 9,744
TOTAL MASTER NOTES
(Cost $15,461) 15,461
REPURCHASE AGREEMENTS--12.5%
J.P. Morgan 5.345%, dated 03/29/96, matures
04/01/96, repurchase price
$24,242,983(collateralized by various U.S.
Treasury STRIPS, total par value $96,145,815,
11/15/96-05/15/22: total market value
$24,716,833) $ 24,232 $ 24,232
Merrill Lynch 5.450%, dated 03/29/96, matures
04/01/96, repurchase price $31,100,012
(collateralized by various U.S. Treasury
Bills, total par value $789,738,
01/09/97-03/06/97: various U.S. Treasury
Bonds, total par value $22,938,229,
7.625%-14.000%, 05/15/05-08/15/13: total
market value $31,707,613) 31,086 31,086
TOTAL REPURCHASE AGREEMENTS
(Cost $55,318) 55,318
TOTAL INVESTMENTS--103.2%
(Cost $387,348) 458,370
OTHER ASSETS AND LIABILITIES--(3.2%)
Other Assets and Liabilities, Net (14,058)
NET ASSETS:
Portfolio shares--Institutional Class ($.0001 par value--2
billion authorized) based on
19,752,946 outstanding shares 325,265
Portfolio shares--Retail Class A ($.0001 par value--2
billion authorized) based on
873,499 outstanding shares 14,553
Portfolio shares--Retail Class B ($.0001 par value--2
billion authorized) based on
742,593 outstanding shares 14,147
Undistributed net investment income 266
Accumulated net realized gain on investments 19,059
Net unrealized appreciation of investments 71,022
TOTAL NET ASSETS:--100.0% $444,312
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER
SHARE--INSTITUTIONAL CLASS $ 20.80
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE--RETAIL
CLASS A $ 20.80
MAXIMUM SALES CHARGE OF 4.50% (1) 0.98
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 21.78
NET ASSET VALUE AND OFFERING PRICE PER SHARE--RETAIL CLASS
B (2) $ 20.71
</TABLE>
* 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) Variable Rate Security with Demand Features--the rate reported on the
Statement of Net Assets is the rate in effect as of March 31, 1996. The
date shown is the longer of the reset or demand date.
ADR--American Depository Receipt
AMBAC--American Municipal Bond Assurance Corporation
STRIPS--Separate Trading of Registered Interest and Principal of
Securities
The accompanying notes are an integral part of the financial statements.
SPECIAL EQUITY FUND
Description Shares/Par (000) Value (000)
<TABLE>
<CAPTION>
<S> <C> <C>
COMMON STOCKS--89.6%
APPAREL--2.4%
Reebok International 188,600 $ 5,210
AUTOMOTIVE--3.4%
Ford Motor 214,400 7,370
BANKS--3.3%
First Chicago 174,000 7,221
CHEMICALS--6.7%
Borden Chemical 304,600 4,569
W.R.Grace 130,200 10,188
14,757
COMMUNICATIONS EQUIPMENT--4.2%
Aydin* 71,700 1,058
Nokia, ADR 238,600 8,172
9,230
COMPUTERS & SERVICES--9.0%
Compaq Computer* 144,900 5,597
Dell Computer* 202,700 6,790
Gateway 2000* 268,500 7,484
19,871
CONSTRUCTION MATERIALS--0.7%
Lafarge 86,900 1,640
ENVIRONMENTAL SERVICES--3.1%
Browning Ferris Industries 214,400 6,754
FINANCIAL SERVICES--1.6%
RAC Financial Group* 157,300 3,539
FOOD, BEVERAGE & TOBACCO--5.3%
Dean Foods 123,300 3,083
Dole Food 116,000 4,466
International Multifoods 214,400 4,100
11,649
INSURANCE--6.8%
Aetna Life & Casualty 85,800 6,478
IPC Holdings* 181,200 3,783
U.S. Healthcare 101,400 4,652
14,913
MACHINERY--2.6%
Brown & Sharpe Manufacturing* 145,000 1,450
Kulicke & Soffa Industries* 275,600 4,341
5,791
MARINE TRANSPORTATION--2.9%
Overseas Shipholding Group 202,900 3,703
Stolt-Nielsen* 153,300 2,778
6,481
METALS & MINING--5.2%
Freeport-McMoran Copper & Gold 108,700 $ 3,343
LTV* 214,600 2,790
Potash of Saskatchewan 87,000 5,437
11,570
OIL--DOMESTIC--8.5%
Holly 107,200 2,600
Louisiana Land & Exploration 79,700 3,716
USX-Marathon Group 287,100 5,527
Valero Energy 180,400 4,442
Wiser Oil 190,300 2,521
18,806
OIL--SERVICES--1.9%
Horsham 284,400 4,159
PRINTING & PUBLISHING--2.7%
American Greetings, Cl A 214,400 5,923
REAL ESTATE INVESTMENT TRUSTS--3.7%
Carr Realty 85,800 2,059
DeBartolo Realty 214,400 3,216
Glimcher Realty Trust 178,700 3,038
8,313
RETAIL--11.7%
Best Buy* 325,600 5,657
Brinker International* 261,200 4,375
Department 56* 289,900 6,342
Price/Costco* 181,400 3,401
Stop & Shop* 178,700 5,897
25,672
SEMI-CONDUCTORS/INSTRUMENTS--2.6%
LSI Logic* 217,600 5,821
STEEL & STEEL WORKS--1.3%
Century Aluminum* 217,600 2,965
TOTAL COMMON STOCKS
(Cost $186,115) 197,655
MASTER NOTES--6.6%
Associates Corporation of North America
5.233%, 04/01/96 (A) $ 4,923 4,923
Goldman Sachs
5.460%, 04/01/96 (A) 9,534 9,534
TOTAL MASTER NOTES
(Cost $14,457) 14,457
REPURCHASE AGREEMENTS--4.4%
J.P. Morgan 5.345%, dated 03/29/96, matures
04/01/96, repurchase price $4,089,137
(collateralized by various U.S. Treasury
STRIPS, total par value $16,217,203,
11/15/96-05/15/22: total market value
$4,169,062) $4,087 $ 4,087
Merrill Lynch 5.450%, dated 03/29/96, matures
04/01/96, repurchase price $5,743,916
(collateralized by various U.S. Treasury
Bills, total par value $145,858,
01/09/97-03/06/97: various U.S. Treasury
Bonds, total par value $4,236,502,
7.625%-14.000%, 05/15/05-08/15/13: total
market value $5,856,135) 5,741 5,741
TOTAL REPURCHASE AGREEMENTS
(Cost $9,828) 9,828
TOTAL INVESTMENTS--100.6%
(Cost $210,400) 221,940
OTHER ASSETS AND LIABILITIES--(0.6%)
Other Assets and Liabilities, Net (1,346)
NET ASSETS:
Portfolio shares--Institutional Class ($.0001 par value--2
billion authorized) based on
11,289,299 outstanding shares 173,267
Portfolio shares--Retail Class A ($.0001 par value--2
billion authorized) based on
672,704 outstanding shares 10,382
Portfolio shares--Retail Class B ($.0001 par value--2
billion authorized) based on
410,532 outstanding shares 6,906
Undistributed net investment income 177
Accumulated net realized gain on investments 18,322
Net unrealized appreciation of investments 11,540
TOTAL NET ASSETS:--100.0% $220,594
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER
SHARE--INSTITUTIONAL CLASS $ 17.83
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE--RETAIL
CLASS A $ 17.82
MAXIMUM SALES CHARGE OF 4.50% (1) 0.84
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 18.66
NET ASSET VALUE AND OFFERING PRICE PER SHARE--RETAIL CLASS
B (2) $ 17.75
</TABLE>
* 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) Variable Rate Security with Demand Features--the rate reported on the
Statement of Net Assets is the rate in effect as of March 31, 1996. The
date shown is the longer of the reset or demand date.
ADR--American Depository Receipt
STRIPS--Separate Trading of Registered Interest and Principal of
Securities
The accompanying notes are an integral part of the financial statements.
REGIONAL EQUITY FUND
Description Shares/Par (000) Value (000)
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENTS IN SECURITIES
OF UNAFFILIATED ISSUERS--84.4%
COMMON STOCKS--74.2%
APPAREL/TEXTILES--1.3%
Sport-Haley* 318,900 $ 3,707
AUTOMOTIVE--2.4%
Tower Automotive* 446,000 7,192
BANKS--5.4%
Community First Bankshares 323,500 7,198
TCF Financial 237,000 8,591
15,789
BROADCASTING, NEWSPAPERS &
ADVERTISING--1.3%
Lodgenet Entertainment* 300,000 3,900
CHEMICALS--1.2%
W.H. Brady 159,200 3,403
COMMUNICATIONS EQUIPMENT--5.4%
Communications Systems 520,000 8,060
Digital Systems* 500,000 7,656
15,716
COMPUTERS & SERVICES--11.1%
Control Data Systems* 470,000 9,312
Cray Research* 420,000 12,232
Digi International* 300,000 8,250
Netstar* 180,000 2,835
32,629
DRUGS--3.4%
Lifecore Biomedical* 552,500 9,945
ENVIRONMENTAL SERVICES--0.4%
Appliance Recycling Centers of America* 312,600 1,289
FOOD, BEVERAGE & TOBACCO--2.8%
International Multifoods 250,000 4,781
Michael Foods 325,000 3,412
8,193
INSURANCE--1.1%
Amerin* 92,100 2,510
Crop Growers* 90,000 765
3,275
MACHINERY--12.0%
Alliant Techsystems* 60,000 2,902
Applied Power 150,000 4,894
BMC Industries 183,200 3,939
Check Technology* 119,300 1,402
Donaldson 250,000 6,875
Idex* 108,300 $ 4,210
Pentair 170,000 4,292
Valmont Industries 223,800 6,714
35,228
MEDICAL--3.8%
Angeion* 590,000 6,564
ATS Medical* 186,400 1,980
Empi* 150,400 2,764
11,308
METALS & MINING--0.8%
Varlen 100,000 2,300
MISCELLANEOUS BUSINESS SERVICES--3.1%
National Computer Systems 447,500 9,062
MISCELLANEOUS CONSUMER SERVICES--3.7%
Regis 350,000 10,763
MULTI-INDUSTRY--1.9%
U.S. Industries* 270,000 5,603
PRINTING & PUBLISHING--1.3%
IPI* 205,800 823
Merrill 175,200 2,935
3,758
RETAIL--8.8%
Buffets* 442,600 6,307
Department 56* 321,000 7,022
Fingerhut 616,700 7,940
Vicorp Restaurants* 300,000 4,425
25,694
TELEPHONES & TELECOMMUNICATION--0.4%
Marketlink* 485,000 1,152
WHOLESALE--2.6%
A.M. Castle 162,400 4,791
Hawkins Chemical 346,500 2,945
7,736
TOTAL COMMON STOCKS
(Cost $169,027) 217,642
CONVERTIBLE BOND--0.6%
Hector Communications
8.500%, 02/15/02 $ 1,630 1,671
TOTAL CONVERTIBLE BOND
(Cost $1,630) 1,671
WARRANT--0.1%
MEDICAL PRODUCTS & SERVICES--0.1%
ATS Medical* $ 186 $ 233
TOTAL WARRANT
(Cost $59) 233
MASTER NOTES--2.9%
Associates Corporation of North America
5.233%, 04/01/96 (A) 2,304 2,304
Goldman Sachs
5.460%, 04/01/96 (A) 6,168 6,168
TOTAL MASTER NOTES
(Cost $8,472) 8,472
REPURCHASE AGREEMENTS--6.6%
J.P. Morgan 5.345%, dated 03/29/96, matures
04/01/96, repurchase price $3,307,269
(collateralized by various U.S. Treasury
STRIPS, total par value $13,116,377,
11/15/96-05/15/22: total market value
$3,371,913) 3,306 3,306
Merrill Lynch 5.450%, dated 03/29/96, matures
04/01/96, repurchase price $16,127,712
(collateralized by various U.S. Treasury
Bills, total par value $409,539,
01/09/97-03/06/97: various U.S. Treasury
Bonds, total par value $11,895,209,
7.625%-14.000%, 05/15/05-08/15/13: total
market value $16,442,799) 16,120 16,120
TOTAL REPURCHASE AGREEMENTS
(Cost $19,426) 19,426
TOTAL INVESTMENTS IN SECURITIES OF
UNAFFILIATED ISSUERS
(Cost $198,614) 247,444
INVESTMENTS IN COMMON STOCK
OF AFFILIATES--14.2%
Aequitron Medical* (B) 534,600 3,809
Aetrium* (B) 825,000 12,581
Alternate Postal Delivery* (B) 284,500 1,636
Audio King* (B) 330,000 908
Deflecta-Shield* (B) 250,000 1,125
Dynamic Healthcare Techologies* (B) 350,000 831
Norstan* (B) 322,500 8,647
Orphan Medical* (B) 291,000 2,437
Rehabilicare* (B) 500,000 2,187
TSI (B) 430,000 7,633
TOTAL INVESTMENTS IN COMMON
STOCK OF AFFILIATES
(Cost $28,743) 41,794
TOTAL INVESTMENTS--98.6%
(Cost $227,357) $289,238
OTHER ASSETS AND LIABILITIES--1.4%
Other Assets and Liabilities, Net 4,240
NET ASSETS:
Portfolio shares--Institutional Class ($.0001 par value--2
billion authorized) based on
14,746,097 outstanding shares 192,985
Portfolio shares--Retail Class A ($.0001 par value--2
billion authorized) based on
1,256,287 outstanding shares 16,521
Portfolio shares--Retail Class B ($.0001 par value--2
billion authorized) based on
1,084,600 outstanding shares 17,114
Undistributed net investment income 176
Accumulated net realized gain on investments 4,801
Net unrealized appreciation of investments 61,881
TOTAL NET ASSETS:--100.0% $293,478
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER
SHARE--INSTITUTIONAL CLASS $ 17.19
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE--RETAIL
CLASS A $ 17.17
MAXIMUM SALES CHARGE OF 4.50%(1) 0.81
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 17.98
NET ASSET VALUE AND OFFERING PRICE PER SHARE--RETAIL CLASS
B (2) $ 17.00
</TABLE>
* 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) Variable Rate Security--the rate reported on the Statement of Net
Assets is the rate in effect at March 31, 1996. The date shown is the
next reset date.
(B) 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 semi-annual
period ended March 31, 1996. The activity for these securities is
listed below.
<TABLE>
<CAPTION>
SHARES SHARES REALIZED
DESCRIPTION AT 9/30/95 AT 3/31/96 DIFFERENCE DIVIDENDS GAINS/LOSSES
<S> <C> <C> <C> <C> <C>
Aequitron Medical 360,000 534,600 174,600 -- --
Aetrium 680,000 825,000 145,000 -- --
Alternate Postal
Delivery 241,900 284,500 42,600 -- --
Audio King 265,000 330,000 65,000 -- --
Appliance Recycling
Centers 34,300 312,600 278,300 -- --
Canterbury Park
Holdings 177,500 -- (177,500) -- (355,000)
Communications Systems 440,000 520,000 80,000 60,207 --
Deflecta-Shield 250,000 250,000 -- -- --
Digital Systems -- 500,000 500,000 -- --
Dynamic Healthcare
Technologies 350,000 350,000 -- -- --
Lifecore Biomedical 350,000 552,500 202,500 -- --
Marketlink 485,000 485,000 -- -- --
Navarre 260,000 -- (260,000) -- 137,869
Norstan 240,000 322,500 82,500 -- --
Orphan Medical 275,000 291,000 16,000 -- --
Rehabilicare 471,400 500,000 28,600 -- --
Rimage 235,000 -- (235,000) -- (558,567)
Sport Haley -- 318,900 318,900 -- --
TSI 430,000 430,000 -- 30,100 --
</TABLE>
STRIPS--Separate Trading of Registered Interest and Principal of
Securities.
The accompanying notes are an integral part of the financial statements.
EMERGING GROWTH FUND
Description Shares/Par (000) Value (000)
<TABLE>
<CAPTION>
<S> <C> <C>
COMMON STOCKS--92.0%
AEROSPACE & DEFENSE--1.6%
Remec* 28,000 $ 350
Tracor* 36,000 628
978
APPAREL/TEXTILES--0.5%
Cutter & Buck* 31,000 310
AUTOMOTIVE--1.6%
Deflecta-Shield* 73,000 329
Tower Automotive* 42,000 677
1,006
BICYCLES & BICYCLE PARTS--1.0%
Cannondale* 35,000 643
BROADCASTING, NEWSPAPERS &
ADVERTISING--2.1%
Bell Cablemedia, ADR* 26,000 432
National Wireless Holdings* 25,000 388
Pricellular, Cl A* 36,250 485
1,305
CHEMICALS--2.1%
Applied Extrusion Technologies* 37,000 402
Cambrex 19,000 876
1,278
COMMUNICATIONS EQUIPMENT--5.9%
Checkpoint Systems* 49,000 1,219
Communications Systems 48,000 744
Picturetel* 21,000 651
Telebit* 30,000 156
Tellabs* 17,000 822
3,592
COMPUTERS & SERVICES--4.4%
HMT Technology* 56,000 584
Imnet Systems* 30,000 908
Mackie Designs* 33,000 351
Mylex* 6,000 142
Netstar* 46,000 725
2,710
DRUGS--3.3%
Genzyme* 10,000 550
Idexx Laboratories* 35,000 1,470
2,020
ENERGY & POWER--1.4%
California Energy* 32,000 852
FINANCIAL SERVICES--10.2%
Advanta, Cl A 11,000 $ 572
Advanta, Cl B 17,000 808
The Bisys Group* 32,000 1,060
Contifinancial* 4,200 131
Dignity Partners* 63,000 740
First USA 15,000 849
Fiserv* 30,000 840
Investors Financial Services* 2,500 55
SPS Transaction Services* 22,000 679
StorMedia* 23,000 535
6,269
FOOD, BEVERAGE & TOBACCO--0.4%
Hart Brewing* 17,000 247
HOME APPLIANCES--1.3%
Molten Metal Technology* 23,000 771
HOUSEHOLD PRODUCTS--1.4%
Coleman* 19,000 838
INSURANCE--4.4%
Amerin* 24,000 654
Meadowbrook Insurance Group 9,000 288
Partnerre Holdings 19,000 565
Vesta Insurance Group 37,500 1,223
2,730
MACHINERY--2.3%
Electric Fuel* 85,000 552
Shaw Group* 50,000 869
1,421
MEASURING DEVICES--1.3%
Quickturn Design Systems* 36,000 392
Thermo Sentron * 28,000 448
840
MEDICAL PRODUCTS & SERVICES--12.3%
American Medical Response* 15,000 532
ATS Medical* 78,000 829
Conceptus* 6,200 126
HBO 14,500 1,367
Healthsource* 35,500 1,376
Quorum Health Group* 42,000 987
Target Therapeutics* 20,000 1,212
Vencor* 34,000 1,173
7,602
METALS & MINING--0.3%
Republic Engineered Steels* 46,000 201
METALWORKING, MACHINERY, & EQUIPMENT--3.0%
Greenfield Industries 38,000 $1,316
Wolverine Tube* 13,000 528
1,844
MISCELLANEOUS BUSINESS SERVICES--4.4%
Arbor Software* 4,000 173
Harbinger* 12,000 213
Keane* 24,000 717
Landmark Graphics* 32,000 532
Learning Tree International* 36,000 711
Red Brick Systems* 7,800 335
2,681
MISCELLANEOUS CONSUMER SERVICES--1.4%
Career Horizons* 28,000 833
OIL--DOMESTIC--3.2%
Belden & Blake* 32,000 572
Cairn Energy USA* 54,000 614
Petroleum Geo Services, ADR* 31,000 781
1,967
PRINTING & PUBLISHING--0.7%
Thomas Nelson 27,000 405
RETAIL--3.6%
BAB Holdings* 74,900 580
Buffets* 24,000 342
Hometown Buffet* 48,000 582
Orchard Supply Hardware Stores* 31,000 732
2,236
SEMI-CONDUCTORS/INSTRUMENTS--2.3%
Advanced Energy Industries* 74,000 592
Aetrium* 31,000 473
Fusion Systems* 13,900 351
1,416
SERVICES--PREPACKAGED SOFTWARE--5.3%
BTG* 74,000 731
Datalogix International* 47,000 634
Discreet Logic* 25,000 344
Hyperion Software* 30,000 652
National Instruments* 23,000 483
Platinum Technology* 31,000 469
3,313
SERVICES--SECURITY--1.1%
ITI Technologies* 24,000 651
SPECIALTY CONSTRUCTION--0.5%
Insituform Technologies, Cl A* 32,000 336
TELEPHONES & TELECOMMUNICATION--3.8%
A+ Network* 30,000 $ 338
American Paging* 34,000 223
Broadband Technologies* 24,000 612
International Cabletel* 39,000 1,175
2,348
TRUCKING--3.8%
Fritz* 31,000 1,209
Landstar System* 45,000 1,125
2,334
WHOLESALE--1.1%
Neuromedical Systems* 24,000 522
Telcom Semiconductor* 36,000 185
707
TOTAL COMMON STOCKS
(Cost $46,871) 56,684
PREFERRED STOCK--0.4%
MISCELLANEOUS BUSINESS SERVICES--0.4%
Network Imaging 14,000 222
TOTAL PREFERRED STOCK
(Cost $227) 222
WARRANT--0.1%
MEDICAL PRODUCTS & SERVICES--0.1%
ATS Medical* 43,000 54
TOTAL WARRANT
(Cost $12) 54
REPURCHASE AGREEMENTS--8.1%
J.P. Morgan 5.345%, dated 03/29/96, matures
04/01/96, repurchase price
$2,133,751(collateralized by various U.S.
Treasury STRIPS, total par value $8,462,293,
11/15/96-05/15/22: total market value
$2,175,457) $ 2,133 2,133
Merrill Lynch 5.450%, dated 03/29/96, matures
04/01/96, repurchase price $2,888,708
(collateralized by various U.S. Treasury
Bills, total par value $73,354,
01/09/97-03/06/97: U.S. Treasury Bonds, total
par value $2,130,605, 7.625%- 14.000%,
05/15/05-08/15/13: total market value
$2,945,145) 2,887 2,887
TOTAL REPURCHASE AGREEMENTS
(Cost $5,020) 5,020
TOTAL INVESTMENTS--100.6%
(Cost $52,130) $61,980
OTHER ASSETS AND LIABILITIES--(0.6%)
Other Assets and Liabilities, Net (340)
NET ASSETS:
Portfolio shares--Institutional Class ($.0001 par value--2
billion authorized) based on
4,284,673 outstanding shares 50,364
Portfolio shares--Retail Class A ($.0001 par value--2
billion authorized) based on
46,678 outstanding shares 571
Portfolio shares--Retail Class B ($.0001 par value--2
billion authorized) based on
33,841 outstanding shares 417
Distributions in excess of net investment income (60)
Accumulated net realized gain on investments 498
Net unrealized appreciation of investments 9,850
TOTAL NET ASSETS:--100.0% $61,640
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER
SHARE--INSTITUTIONAL CLASS $ 14.12
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE--RETAIL
CLASS A $ 14.11
MAXIMUM SALES CHARGE OF 4.50%(1) 0.66
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 14.77
NET ASSET VALUE AND OFFERING PRICE PER SHARE--RETAIL CLASS
B (2) $ 13.95
</TABLE>
* 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.
ADR--American Depository Receipt
STRIPS--Separate Trading of Registered Interest and Principal of
Securities.
The accompanying notes are an integral part of the financial statements.
TECHNOLOGY FUND
Description Shares Value (000)
<TABLE>
<CAPTION>
<S> <C> <C>
COMMON STOCKS--97.8%
AEROSPACE & DEFENSE--1.1%
Remec* 43,700 $ 546
COMMUNICATIONS EQUIPMENT--15.1%
ADC Telecommunications* 19,000 655
Broadband Technologies* 45,200 1,153
Harmonic Lite* 21,100 290
L.M. Ericsson Telephone, ADR* 25,200 539
Nokia, ADR 28,300 969
Picturetel* 22,000 682
Stratacom* 36,000 1,319
Telebit* 49,100 255
Tellabs* 32,400 1,567
7,429
COMPUTERS & SERVICES--21.6%
Ciber* 3,800 124
Cisco Systems* 31,700 1,470
Compaq Computer* 5,700 220
Dell Computer* 32,700 1,095
Fore Systems* 23,100 1,651
Gateway 2000* 26,100 728
HMT Technology* 46,000 480
IBM 8,100 900
Imnet Systems* 19,800 599
Mackie Designs* 29,800 317
Mylex* 9,000 214
Netscape Communications* 9,200 382
Netstar Inc* 56,500 890
Seagate Technology* 16,300 892
StorMedia* 27,800 646
10,608
MISCELLANEOUS BUSINESS SERVICES--2.4%
Across Data Systems* 9,300 74
Engineering Animation* 2,400 50
Indus Group* 1,200 23
JDA Software Group* 44,600 530
Neuromedical Systems* 10,000 218
Orcad* 7,800 92
Powercerv* 13,600 203
Segue Software* 500 10
1,200
SEMI-CONDUCTORS/INSTRUMENTS--13.7%
Adaptec* 16,200 782
Advanced Energy Industries* 15,600 125
Advanced Technology Materials* 19,300 198
Aetrium* 6,800 104
Altera* 8,900 497
ANADIGICS* 4,207 87
Intel 22,300 1,268
LSI Logic* 23,500 $ 629
Quickturn Design Systems* 28,700 312
S3* 34,900 417
SDL* 3,300 105
SGS-Thomson Microelectronics* 14,000 508
Silicon Storage Technology* 21,000 242
Solectron* 7,600 334
Telcom Semiconductor* 33,800 173
Texas Instruments 11,900 605
Xetel* 38,100 338
6,724
SERVICES--PREPACKAGED SOFTWARE--43.9%
Adept Technology* 400 6
Arbor Software* 13,100 567
Avant!* 500 12
BTG* 33,300 329
CFI Proservices* 16,300 246
Checkfree* 2,000 35
Computer Associates International 13,500 967
Cooper & Chyan Technology* 900 13
Cylink* 22,100 392
Datalogix International* 41,500 560
Dendrite International* 17,300 378
Discreet Logic* 16,400 225
Forte Software* 5,700 231
Gensym* 26,100 509
HNC Software* 11,200 762
Harbinger* 38,500 683
Hyperion Software* 27,500 598
Informix* 47,400 1,250
Learning Tree International* 29,700 587
Legato Systems* 600 23
Macromedia* 35,100 1,500
Meta Group* 700 20
Meta Software* 20,700 347
Microsoft* 10,100 1,042
National Instruments* 27,200 571
Novadigm* 19,700 298
Oracle* 46,700 2,201
Parametric Technology* 28,800 1,127
Peoplesoft* 25,700 1,478
Platinum Technology* 24,000 363
Pure Software* 28,700 990
Red Brick Systems* 6,000 258
Secure Computing* 18,500 402
Shiva* 10,300 935
Spectrum Holobyte* 60,000 487
SQA* 19,500 531
Synopsys* 22,100 707
21,630
TOTAL COMMON STOCKS
(Cost $45,512) 48,137
PREFERRED STOCK--0.3%
SERVICES--PREPACKAGED SOFTWARE--0.3%
Network Imaging 10,200 $ 162
TOTAL PREFERRED STOCK
(Cost $179) 162
REPURCHASE AGREEMENT--2.4%
Merrill Lynch 5.450%, dated 03/29/96, matures
04/01/96, repurchase price
$1,168,142(collateralized by various U.S.
Treasury Bills, total par value $29,663,
01/09/97-03/06/97: U.S. Treasury Bonds, total
par value $861,579, 7.625%- 14.000%,
05/15/05-08/15/13: total market value
$1,190,964) $ 1,168 1,168
TOTAL REPURCHASE AGREEMENT
(Cost $1,168) 1,168
TOTAL INVESTMENTS--100.5%
(Cost $46,859) 49,467
OTHER ASSETS AND LIABILITIES--(0.5%)
Other Assets and Liabilities, Net (242)
NET ASSETS:
Portfolio shares--Institutional Class ($.0001 par value--2
billion authorized) based on
2,768,790 outstanding shares 38,280
Portfolio shares--Retail Class A ($.0001 par value--2
billion authorized) based on
136,236 outstanding shares 2,141
Portfolio shares--Retail Class B ($.0001 par value--2
billion authorized) based on
184,657 outstanding shares 2,926
Accumulated net investment loss (118)
Accumulated net realized gain on investments 3,388
Net unrealized appreciation of investments 2,608
TOTAL NET ASSETS:--100.0% $49,225
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER
SHARE--INSTITUTIONAL CLASS $ 15.95
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE--RETAIL
CLASS A $15.93
MAXIMUM SALES CHARGE OF 4.50% (1) 0.75
OFFERING PRICE PER SHARE--RETAIL CLASS A $16.68
NET ASSET VALUE AND OFFERING PRICE PER SHARE--RETAIL CLASS
B (2) $15.66
</TABLE>
* 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.
ADR--American Depository Receipt
The accompanying notes are an integral part of the financial statements.
HEALTH SCIENCES FUND
Description Shares/Par (000) Value (000)
<TABLE>
<CAPTION>
<S> <C> <C>
COMMON STOCKS--87.0%
CHEMICALS--2.8%
Cambrex 5,700 $ 263
DRUGS--10.2%
Chirex 5,900 60
Galagen * 7,500 75
Genzyme* 3,400 187
Genzyme-Tissue Repair* 1,500 25
Immulogic Pharmaceutical* 4,200 56
Liposome* 3,000 63
R.P. Scherer* 4,400 193
Schering Plough 3,900 227
Sepracor* 4,400 64
950
INSURANCE--6.9%
Pacificare Health Systems, Cl B* 2,300 196
United Healthcare 4,100 252
Value Health* 6,700 184
632
MACHINERY--2.0%
Pall 7,300 187
MEDICAL PRODUCTS & SERVICES--51.2%
American Medical Response* 5,600 199
American Oncology Resources* 1,700 72
Angeion* 9,200 102
Arrow International 3,800 158
ATS Medical* 13,300 141
Biochem Pharmaceuticals* 1,800 74
Boston Scientific* 4,200 193
Columbia/HCA Healthcare 3,000 173
Conceptus* 1,000 20
Elan, ADR* 2,900 186
Genesis Health Ventures* 3,800 154
HBO 3,100 292
Health Management Associates, Cl A* 5,600 196
HealthSource* 7,500 291
Idexx Laboratories* 5,000 210
Integrated Health Services 5,100 119
Medtronic 4,400 262
Metra Biosystems* 5,500 78
Minntech 8,200 168
Neuromedical Systems* 9,000 196
Physio-Control International* 10,200 204
Quorum Health Group* 9,800 230
Sano* 6,500 94
Spine-Tech* 6,600 152
Steris* 5,200 156
Stryker 3,900 192
Target Therapeutics* 3,900 237
Vencor* 6,500 224
4,773
MISCELLANEOUS BUSINESS SERVICES--1.0%
Quality Systems* 4,200 $ 92
REAL ESTATE INVESTMENT TRUSTS--5.3%
Healthcare Realty Trust* 7,600 166
National Health Investors 5,400 176
Nationwide Health Properties 7,200 151
493
SERVICES--PREPACKAGED SOFTWARE--3.6%
Enterprise Systems* 1,800 50
Imnet Systems* 6,500 197
Summit Medical Systems* 4,600 90
337
WHOLESALE--4.0%
Cardinal Health 2,800 180
Patterson Dental* 6,700 203
383
TOTAL COMMON STOCKS
(Cost $8,217) 8,110
WARRANT--0.2%
MEDICAL PRODUCTS & SERVICES--0.2%
ATS Medical* 14,300 18
TOTAL WARRANT
(Cost $20) 18
REPURCHASE AGREEMENT--11.7%
Merrill Lynch 5.450%, dated 03/29/96, matures
04/01/96, repurchase price $1,093,909
(collateralized by various U.S. Treasury
Bills, total par value $27,778,
01/09/97-03/06/97: U.S. Treasury Bonds, total
par value $806,827, 7.625%- 14.000%,
05/15/05-08/15/13: total market value
$1,115,280) $ 1,093 1,093
TOTAL REPURCHASE AGREEMENT
(Cost $1,093) 1,093
TOTAL INVESTMENTS--98.9%
(Cost $9,330) 9,221
OTHER ASSETS AND LIABILITIES--1.1%
Other Assets and Liabilities, Net $ 100
NET ASSETS:
Portfolio shares--Institutional Class ($.0001 par value--2
billion authorized) based on
912,762 outstanding shares 9,101
Portfolio shares--Retail Class A ($.0001 par value--2
billion authorized) based on
24,444 outstanding shares 244
Portfolio shares--Retail Class B ($.0001 par value--2
billion authorized) based on
8,597 outstanding shares 86
Distributions in excess of net investment income (1)
Net unrealized depreciation of investments (109)
TOTAL NET ASSETS:--100.0% $9,321
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER
SHARE--INSTITUTIONAL CLASS $ 9.86
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE--RETAIL
CLASS A $ 9.85
MAXIMUM SALES CHARGE OF 4.50%(1) 0.46
OFFERING PRICE PER SHARE--RETAIL CLASS A $10.31
NET ASSET VALUE AND OFFERING PRICE PER SHARE--RETAIL CLASS
B (2) $ 9.85
</TABLE>
* 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.
ADR--American Depository Receipt
The accompanying notes are an integral part of the financial statements.
INTERNATIONAL FUND
Description Shares Value (000)
<TABLE>
<CAPTION>
<S> <C> <C>
FOREIGN COMMON STOCKS--92.2%
ARGENTINA--2.8%
Banco DaGalicia, ADR 28,100 $ 674
Banco Frances Rio Plata, ADR 52,380 1,434
Cementera Argentina* 100,000 402
Commercial del Plata* 79,000 213
Dycasa Dragados, Cl B 60,000 237
Irsa, Cl B 116,718 328
Quilmes Industrial 20,000 215
3,503
CANADA--0.3%
BioChem Pharma* 8,900 365
CHILE--1.7%
Andina Embotelladora, ADR 8,900 307
Compania de Telefonos Chile, ADR 4,000 339
Quimica y Minera Chile, ADR 20,000 1,045
Santa Isabel, ADR* 15,700 398
2,089
FRANCE--1.8%
Axa 9,085 558
Business Objects, ADR* 12,300 1,046
Canal Plus 2,900 678
2,282
GERMANY--1.7%
Bayer 2,500 848
Hoechst 3,600 1,278
2,126
HONG KONG--10.1%
Cheung Kong Holdings 370,000 2,607
Citic Pacific 494,700 1,919
First Pacific 1,675,000 2,383
Giordano 270,000 279
HSBC Holdings 155,400 2,331
Hutchison Whampoa 210,000 1,325
Sun Hung Kai Properties 158,000 1,415
VTech Holdings 146,000 267
12,526
INDIA--0.4%
East India Hotels, GDR (A) 7,100 160
Ranbaxy Laboratories, GDR (A) 12,000 264
424
INDONESIA--0.4%
Indonesian Satellite, ADR 13,900 474
IRELAND--1.0%
Elan, ADR* 20,000 1,285
ISRAEL--0.3%
ECI Telecommunications 16,000 358
ITALY--2.5%
Assicurazioni Generali 19,000 $ 425
Fiat 181,000 569
Gucci Group, ADR* 17,200 826
Telecom Italia 650,000 1,182
3,002
JAPAN--27.4%
Advantest 12,870 580
Alpine Electronics 40,000 670
Bridgestone 28,000 469
Canon 36,000 687
Daiichi 11,000 255
Daini Denden 76 579
Daiwa Securities 155,000 2,363
Eisai 16,000 320
Honda Motor 28,000 610
Hoya 12,000 413
Ito Yokado 37,000 2,198
Jusco 21,000 548
Kao 46,000 572
Keyence 2,100 251
KOA 25,000 351
Komatsu 100,000 892
Marui 40,000 872
Matsushita Communications 9,000 214
Mitsubishi Electric 70,000 521
Mitsubishi Estate 42,000 578
Mitsubishi Heavy Industries 142,000 1,227
Mitsui Marine & Fire Insurance 72,000 543
NEC 40,000 464
Nikko Securities* 62,000 789
Nippon Shinpan 72,000 556
Nippon Steel 161,000 554
Nissan Motors 77,000 596
Nomura Securities 81,000 1,781
NTT Data Communications 43 1,311
Omron 40,000 887
Sankyo 8,000 183
Sanwa Bank 29,000 583
SMC 3,300 234
Sony 33,000 1,973
Sumitomo 132,000 1,395
Sumitomo Bank 18,000 364
Sumitomo Electric 23,000 310
Sumitomo Marine & Fire Insurance 107,000 919
Sumitomo Trust & Banking 35,000 481
Takeda Chemical 120,000 1,875
TDK 10,000 515
Tokio Marine & Fire Insurance 42,000 546
Tokyo Electronics 11,000 376
Toyota Motor 45,000 994
Ushio 16,000 175
Yamanouchi Pharmaceutical 19,000 423
33,997
LUXEMBOURG--0.2%
Millicom International* 6,000 $ 260
MALAYSIA--2.5%
Arab-Malaysian Merchant Bank 100,000 1,324
Malayan Banking 53,000 494
New Straits Times Press 183,000 941
Technology Resources 103,000 371
3,130
MEXICO--1.3%
Cifra, ADR* 117,000 156
Grupo Carso, ADS* 25,000 378
Grupo Financiero Banamex, Cl B* 170,000 363
Grupo Financiero Banamex, Cl L* 8,500 17
Grupo Modelo, Cl C 34,000 158
Grupo Posadas, Cl A* 600,000 271
Grupo Synkro, ADR* 250,000 37
Kimberly Clark, Cl A 15,000 286
1,666
NETHERLANDS--5.4%
AMEV 7,500 529
Baan, ADR* 23,200 1,337
Elsevier 40,100 614
Getronics 8,900 646
Heineken 2,200 475
International Nederlanden 18,000 1,308
Madge Networks, ADR* 26,800 1,075
Polygram 5,100 309
Wolters Kluwer 4,200 462
6,755
NEW ZEALAND--0.4%
Telecom New Zealand, ADR 7,000 501
NORWAY--0.4%
Hafslund Nycomed, Cl B 20,300 554
PERU--1.4%
Banco Wiese, ADR 13,848 94
Cementos Norte Pacasmayo 58,746 77
Cia de Minas Buenaventura, Cl T 33,883 255
Cia Peruana de Telefonos, Cl B 481,559 990
Credicorp 20,016 360
1,776
PHILIPPINES--0.5%
San Miguel, Cl B 181,000 610
SINGAPORE--3.1%
City Developments 143,600 1,276
Hong Kong Land 233,000 559
Singapore Press, F 41,000 819
Straits Steamship Land 89,000 300
United Overseas Bank, F 86,640 874
3,828
SOUTH KOREA--1.4%
Korea Mobile Telephone, GDR (A)* 21,800 $ 1,008
Samsung Electric Voting, GDR (A) 18,718 674
Samsung Electric Non-Voting, GDS* 189 11
1,693
SWEDEN--7.0%
Asea, Cl B 6,950 715
Astra, Cl B 67,500 3,105
Autoliv 11,800 602
Ericsson Telephone, ADR 155,000 3,313
Pharmacia Upjohn, ADR 24,200 965
8,700
SWITZERLAND--6.7%
Brown Boveri & Cie 355 432
Ciba Geigy 1,340 1,678
Roche Holdings 320 2,659
Sandoz Pharmaceutical 3,000 3,520
8,289
THAILAND--1.8%
Advanced Info Service, F 60,000 1,110
Bangkok Bank, F 24,000 312
Total Access Communications, ADR* 101,600 863
2,285
UNITED KINGDOM--9.7%
Barclays Bank 41,000 455
British Sky Broadcasting, ADR 29,000 1,164
Glaxo Wellcome 46,700 585
Logica 31,000 257
Next 122,400 948
Reuters 195,000 2,115
Siebe 46,700 623
SmithKline Beecham 160,000 1,609
Takare 82,400 189
Tele-Communications International, Cl A* 119,700 2,559
Zeneca Group 72,200 1,498
12,002
TOTAL FOREIGN COMMON STOCKS
(Cost $101,717) 114,480
FOREIGN PREFERRED STOCKS--2.1%
FINLAND--0.6%
Nokia, Cl A 20,400 705
GERMANY--1.5%
SAP 13,500 1,934
TOTAL FOREIGN PREFERRED STOCKS
(Cost $2,733) 2,639
REPURCHASE AGREEMENT--5.0%
Merrill Lynch 5.45%, dated 3/29/96, matures
04/01/96, repurchase price $6,208,078
(collateralized by various U.S. Treasury
Bills, total par value $157,645,
01/09/97-03/06/97: U.S. Treasury Bonds, total
par value $4,578,851, 8.25%-14.00%,
05/15/05-08/15/18: total market value
$6,329,366) $6,205 $ 6,205
TOTAL REPURCHASE AGREEMENT
(Cost $6,205) 6,205
TOTAL INVESTMENTS--99.3%
(Cost $110,655) 123,324
OTHER ASSETS AND LIABILITIES--0.7%
Other Assets and Liabilities, Net--0.7% 896
NET ASSETS:
Portfolio shares--Institutional Class ($.0001 par value--2
billion authorized) based on
11,829,823 outstanding shares 116,445
Portfolio shares--Retail Class A ($.0001 par value--2
billion authorized) based on
127,905 outstanding shares 1,262
Portfolio shares--Retail Class B ($.0001 par value--2
billion authorized) based on 62,595 outstanding shares 608
Undistributed net investment income 752
Accumulated net realized loss on investments and foreign
currency transactions (7,578)
Net unrealized appreciation of forward foreign currency
contracts, foreign currency and translation of other assets
and liabilities in foreign currency 62
Net unrealized appreciation of investments 12,669
TOTAL NET ASSETS:--100.0% $124,220
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER
SHARE--INSTITUTIONAL CLASS $ 10.33
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE--RETAIL
CLASS A $ 10.32
MAXIMUM SALES CHARGE OF 4.50%(1) 0.49
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 10.81
NET ASSET VALUE AND OFFERING PRICE PER SHARE--RETAIL CLASS
B (2) $ 10.22
</TABLE>
* 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." These securities have been determined to
be liquid under the guidelines established by the Board of Directors.
ADR--American Depository Receipts
ADS--American Depository Shares
F--Foreign Registry Shares
GDR--Global Depository Receipts
GDS--Global Depository Shares
The accompanying notes are an integral part of the financial statements.
STATEMENTS OF ASSETS AND LIABILITIES (000)----MARCH 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
<S> <C> <C>
INTERMEDIATE FIXED
TERM INCOME
INCOME FUND FUND
ASSETS:
Investment securities, at value (cost $92,461
and $364,577, respectively) $ 91,881 $364,077
RECEIVABLES:
Accrued income 973 3,850
Capital shares sold 9,018 23,215
Other assets 27 52
TOTAL ASSETS 101,899 391,194
LIABILITIES:
PAYABLES:
Accrued expenses 63 245
Securities purchased 11 --
Capital shares redeemed -- 136
TOTAL LIABILITIES 74 381
NET ASSETS:
Portfolio Shares--Institutional Class ($.0001
par value--2 billion authorized)
based on 9,980,640 & 33,950,993 outstanding
shares, respectively 98,834 364,035
Portfolio Shares--Retail Class A ($.0001 par
value--2 billion authorized)
based on 229,257 & 757,878 outstanding shares,
respectively 2,335 8,386
Portfolio Shares--Retail Class B ($.0001 par
value--2 billion authorized)
based on 1,361,176 outstanding shares -- 14,847
Undistributed net investment income 18 34
Accumulated net realized gain on investments 1,218 4,011
Net unrealized depreciation of investments (580) (500)
TOTAL NET ASSETS $101,825 $390,813
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE--INSTITUTIONAL CLASS $ 9.97 $ 10.84
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE--RETAIL CLASS A $ 9.97 $ 10.84
MAXIMUM SALES CHARGE OF 3.75% (1) .39 .42
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 10.36 $ 11.26
NET ASSET VALUE AND OFFERING PRICE PER
SHARE--RETAIL CLASS B (2) -- $ 10.79
</TABLE>
(1) The offer price is calculated by dividing the net asset value by 1 minus
maximum sales charge of 3.75%.
(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 ASSETS AND LIABILITIES (000)--MARCH 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
<S> <C> <C>
EQUITY DIVERSIFIED
INDEX GROWTH
FUND FUND
ASSETS:
Investment securities, at value (cost $221,398
and $165,970, respectively) $283,931 $200,199
RECEIVABLES:
Accrued income 546 258
Securities sold -- 1,503
Capital shares sold 19,008 20,232
Other assets 21 24
TOTAL ASSETS 303,506 222,216
LIABILITIES:
PAYABLES:
Accrued expenses 90 134
Securities purchased -- 18,832
Capital shares redeemed 2,100 43
Other liabilities 63 --
TOTAL LIABILITIES 2,253 19,009
NET ASSETS:
Portfolio Shares--Institutional Class ($.0001
par value--2 billion authorized)
based on 20,144,217 & 15,172,483 outstanding
shares, respectively 222,824 160,917
Portfolio Shares--Retail Class A ($.0001 par
value--2 billion authorized)
based on 296,775 & 322,075 outstanding shares,
respectively 3,699 3,552
Portfolio Shares--Retail Class B ($.0001 par
value--2 billion authorized)
based on 282,750 & 312,525 outstanding shares,
respectively 3,824 3,706
Undistributed net investment income 80 19
Accumulated net realized gain on investments 8,203 784
Net unrealized appreciation of investments 62,534 34,229
Net unrealized appreciation of futures
contracts 89 --
TOTAL NET ASSETS $301,253 $203,207
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE--INSTITUTIONAL CLASS $ 14.54 $ 12.86
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE--RETAIL CLASS A $ 14.55 $ 12.83
MAXIMUM SALES CHARGE OF 4.50% (1) .69 .60
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 15.24 $ 13.43
NET ASSET VALUE AND OFFERING PRICE PER
SHARE--RETAIL CLASS B (2) $ 14.50 $ 12.79
</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)
(Unaudited)
For the period ended March 31, 1996
<TABLE>
<CAPTION>
<S> <C> <C> <C>
PRIME GOVERNMENT TREASURY
OBLIGATIONS OBLIGATIONS OBLIGATIONS
FUND FUND FUND
INVESTMENT INCOME:
Interest $73,646 $25,730 $37,286
EXPENSES:
Investment advisory fees 5,103 1,812 2,659
Distribution fees--Retail Class A 145 -- --
Distribution fees--Retail Class B 1 -- --
Distribution fees--Corporate Trust
Class 22 179 854
Administrator fees 893 317 465
Custodian fees 383 136 199
Registration fees 157 51 86
Professional fees 102 36 53
Transfer agent fees 70 27 36
Printing 46 16 24
Directors' fees 32 12 17
Amortization of organizational costs -- -- 2
Other 36 17 38
TOTAL EXPENSES 6,990 2,603 4,433
LESS: EXPENSES WAIVED (1,079) (385) (587)
TOTAL NET EXPENSES 5,911 2,218 3,846
INVESTMENT INCOME--NET 67,735 23,512 33,440
NET REALIZED GAIN (LOSS) ON
INVESTMENTS (3) 5 --
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $67,732 $23,517 $33,440
</TABLE>
The accompanying notes are an integral part of the financial statements.
For the period ended March 31, 1996
<TABLE>
<CAPTION>
<S> <C> <C> <C>
LIMITED INTERMEDIATE FIXED
TERM TERM INCOME
INCOME FUND INCOME FUND FUND
INVESTMENT INCOME:
Interest $3,922 $ 2,833 $10,933
Dividends -- -- --
Total investment income 3,922 2,833 10,933
EXPENSES:
Investment advisory fees 426 328 1,199
Administrator fees 73 56 206
Transfer agent fees 12 11 20
Amortization of organizational costs 3 3 --
Custodian fees 3 2 2
Directors' fees 2 1 4
Registration fees 6 9 20
Professional fees 5 4 14
Printing 4 3 12
Distribution fees--Retail Class A 10 3 10
Distribution fees--Retail Class B -- -- 57
Other 3 2 8
TOTAL EXPENSES 547 422 1,552
LESS: EXPENSES WAIVED OR ABSORBED (181) (94) (286)
TOTAL NET EXPENSES 366 328 1,266
INVESTMENT INCOME--NET 3,556 2,505 9,667
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS--NET:
Net realized gain (loss) on investments (163) 1,784 4,685
Net change in unrealized appreciation (depreciation) of
investments 144 (1,437) (7,004)
NET GAIN (LOSS) ON INVESTMENTS (19) 347 (2,319)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $3,537 $ 2,852 $ 7,348
</TABLE>
(table continued from above)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
MINNESOTA
COLORADO INSURED REAL
INTERMEDIATE INTERMEDIATE INTERMEDIATE INTERMEDIATE ASSET ESTATE
GOVERNMENT TAX FREE TAX FREE TAX FREE ALLOCATION BALANCED SECURITIES
BOND FUND FUND FUND FUND FUND FUND FUND
$3,651 $1,359 $1,414 $1,860 $ 591 $ 3,426 $ 7
-- -- -- -- 336 1,411 273
3,651 1,359 1,414 1,860 927 4,837 280
392 189 185 248 175 837 31
67 32 32 43 30 143 25
11 10 10 10 14 23 9
-- -- 3 4 3 2 1
2 8 8 10 20 8 1
1 1 1 1 1 3 --
10 7 3 8 3 13 3
5 2 2 3 2 10 1
4 2 2 2 2 8 --
4 2 3 4 1 20 --
-- -- -- -- 5 24 1
3 1 1 2 1 6 --
499 254 250 335 257 1,097 72
(107) (75) (65) (87) (51) (96) (36)
392 179 185 248 206 1,001 36
3,259 1,180 1,229 1,612 721 3,836 244
147 265 122 194 1,281 10,034 (9)
(737) (299) (163) (153) 1,471 6,422 460
(590) (34) (41) 41 2,752 16,456 451
$2,669 $1,146 $1,188 $1,653 $3,473 $20,292 $695
</TABLE>
The accompanying notes are an integral part of the financial statements.
For the period ended March 31, 1996
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
EQUITY EQUITY DIVERSIFIED SPECIAL
INDEX INCOME GROWTH STOCK EQUITY
FUND FUND FUND FUND FUND
INVESTMENT INCOME:
Interest $ 637 $ 342 $ 411 $ 1,325 $ 945
Dividends 2,594 944 1,327 3,775 1,825
Less: Foreign taxes withheld -- -- -- -- --
Total investment income 3,231 1,286 1,738 5,100 2,770
EXPENSES:
Investment advisory fees 874 209 551 1,319 744
Administrator fees 150 36 94 226 127
Transfer agent fees 19 15 17 31 28
Amortization of organizational costs 2 5 5 -- --
Custodian fees 13 9 24 13 4
Directors' fees 3 1 2 4 3
Registration fees 12 7 15 22 12
Professional fees 10 2 6 15 8
Printing 8 2 5 12 7
Distribution fees--Retail Class A 4 3 4 20 14
Distribution fees--Retail Class B 12 9 12 52 29
Other 7 2 4 10 6
TOTAL EXPENSES 1,114 300 739 1,724 982
LESS: EXPENSES WAIVED OR ABSORBED (660) (64) (118) (146) --
TOTAL NET EXPENSES 454 236 621 1,578 982
INVESTMENT INCOME (LOSS)--NET 2,777 1,050 1,117 3,522 1,788
REALIZED AND UNREALIZED GAINS (LOSSES)
ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS--NET:
Net realized gain (loss) on investments 5,944 760 1,574 20,490 20,051
Net realized gain on futures contracts 2,603 -- -- -- --
Net realized gain on forward foreign currency contracts
and foreign currency transactions -- -- -- -- --
Net change in unrealized appreciation (depreciation)
of investments 15,708 3,945 12,613 23,783 (3,476)
Net change in unrealized appreciation on futures
contract 74 -- -- -- --
Net change in unrealized appreciation on forward
foreign currency contracts, foreign currency and
translation of
other assets and liabilities in foreign currency -- -- -- -- --
NET GAIN (LOSS) ON INVESTMENTS 24,329 4,705 14,187 44,273 16,575
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $27,106 $5,755 $15,304 $47,795 $18,363
</TABLE>
* Includes the following amounts due to Investments in Common Stocks of
Affiliates (000): $90 of dividend income, ($776) of realized losses, and
($1,996) of change in unrealized depreciation of investments.
(1) The Health Sciences Fund commenced operations on January 31, 1996.
(table continued from above)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
REGIONAL EMERGING HEALTH
EQUITY GROWTH TECHNOLOGY SCIENCES INTERNATIONAL
FUND FUND FUND FUND(1) FUND
$ 945 $ 147 $ 51 $ 12 $ 208
811* 39 16 6 464
-- -- -- -- (47)
1,756 186 67 18 625
845 176 133 8 664
145 30 26 8 64
31 14 14 5 12
2 3 3 3 3
6 7 6 -- 142
3 1 -- -- 1
14 6 4 1 9
10 2 2 -- 4
8 2 1 -- 4
22 1 2 -- 1
58 2 12 -- 2
6 1 1 -- 9
1,150 245 204 25 915
(28) (25) (19) (15) (1)
1,122 220 185 10 914
634 (34) (118) 8 (289)
4,287* 736 3,951 -- (378)
-- -- -- -- --
-- -- -- -- 437
14,878* 3,912 (4,130) (109) 3,000
-- -- -- -- --
-- -- -- -- 304
19,165 4,648 (179) (109) 3,363
$19,799 $4,614 $ (297) $(101) $3,074
</TABLE>
The accompanying notes are an integral part of the financial statements.
(THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY.)
STATEMENTS OF CHANGES IN NET ASSETS (000)
(Unaudited)
<TABLE>
<CAPTION>
PRIME GOVERNMENT
OBLIGATIONS FUND OBLIGATIONS FUND
10/1/95 10/1/94 10/1/95 10/1/94
TO TO TO TO
3/31/96 9/30/95 3/31/96 9/30/95
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income--net $ 67,735 $ 98,895 $ 23,512 $ 39,231
Net realized gain (loss) on investments (3) 3 5 (36)
Net increase in net assets resulting from operations 67,732 98,898 23,517 39,195
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income--net:
Institutional class (64,058) (95,604) (17,429) (31,983)
Retail class A (2,938) (3,049) -- --
Retail class B (5) -- -- --
Corporate Trust class (734) (244) (6,083) (7,248)
Total distributions (67,735) (98,897) (23,512) (39,231)
CAPITAL SHARE TRANSACTIONS
AT NET ASSET VALUE OF $1.00 PER SHARE:
Institutional class:
Proceeds from sales 6,940,673 11,741,658 2,912,995 4,886,718
Reinvestment of distributions 21,709 33,427 9,720 16,078
Payments for redemptions (7,442,495) (10,171,378) (2,752,277) (4,807,345)
Increase (decrease) in net assets from Institutional
Class transactions (480,113) 1,603,707 170,438 95,451
Retail class A:
Proceeds from sales 207,119 105,193 -- --
Shares issued in connection with acquisition of
Money Fund -- 63,816 -- --
Reinvestment of distributions 2,721 2,635 -- --
Payments for redemptions (158,642) (75,561) -- --
Increase in net assets from Retail Class A
transactions 51,198 96,083 -- --
Retail class B:
Proceeds from sales 563 14 -- --
Reinvestment of distributions 4 -- -- --
Payments for redemptions (121) -- -- --
Increase in net assets from Retail Class B
transactions 446 14 -- --
Corporate Trust Class:
Proceeds from sales 171,575 35,254 389,210 427,493
Shares issued in connection with acquisition of
CT Government Fund -- -- -- 156,260
Payments for redemptions (161,870) (25,519) (350,638) (384,892)
Increase in net assets from Corporate Trust Class
transactions 9,705 9,735 38,572 198,861
Increase (Decrease) in net assets from capital share
transactions (418,764) 1,709,539 209,010 294,312
Total increase (decrease) in net assets (418,767) 1,709,540 209,015 294,276
Net assets at beginning of period 3,016,887 1,307,347 750,145 455,869
Net assets at end of period $ 2,598,120 $ 3,016,887 $ 959,160 $ 750,145
</TABLE>
(table continued from above)
<TABLE>
<CAPTION>
TREASURY
OBLIGATIONS FUND
10/1/95 10/1/94
TO TO
3/31/96 9/30/95
<S> <C> <C>
OPERATIONS:
Investment income--net $ 33,440 $ 48,187
Net realized gain (loss) on investments -- 31
Net increase in net assets resulting from operations 33,440 48,218
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income--net:
Institutional class (4,923) (1,945)
Retail class A -- --
Retail class B -- --
Corporate Trust class (28,517) (46,242)
Total distributions (33,440) (48,187)
CAPITAL SHARE TRANSACTIONS
AT NET ASSET VALUE OF $1.00 PER SHARE:
Institutional class:
Proceeds from sales 1,218,200 417,680
Reinvestment of distributions 1,859 1,201
Payments for redemptions (1,138,472) (301,711)
Increase (decrease) in net assets from Institutional
Class transactions 81,587 117,170
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 1,809,728 3,746,678
Shares issued in connection with acquisition of
CT Government Fund -- --
Payments for redemptions (1,620,202) (3,453,980)
Increase in net assets from Corporate Trust Class
transactions 189,526 292,698
Increase (Decrease) in net assets from capital share
transactions 271,113 409,868
Total increase (decrease) in net assets 271,113 409,899
Net assets at beginning of period 1,155,989 746,090
Net assets at end of period $ 1,427,102 $ 1,155,989
</TABLE>
The accompanying notes are an integral part of the financial statements.
<TABLE>
<CAPTION>
INTERMEDIATE FIXED
LIMITED TERM TERM INCOME INCOME
INCOME FUND 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
3/31/96 9/30/95 3/31/96 9/30/95 3/31/96 9/30/95
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Investment income--net $ 3,556 $ 6,058 $ 2,505 $ 4,867 $ 9,667 $ 12,473
Net realized gain (loss) on investments (163) (1,327) 1,784 542 4,685 3,351
Net change in unrealized appreciation (depreciation) of
investments 144 2,575 (1,437) 3,016 (7,004) 9,685
Net increase in net assets resulting from operations 3,537 7,306 2,852 8,425 7,348 25,509
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income--net:
Institutional class (3,352) (5,548) (2,424) (4,708) (9,266) (11,794)
Retail class A (241) (544) (64) (158) (221) (424)
Retail class B -- -- -- -- (280) (127)
Net realized gain on investments:
Institutional class -- (20) (107) (23) (2,859) (440)
Retail class A -- (3) (3) (1) (75) (22)
Retail class B -- -- -- -- (104) (1)
Return of capital
Institutional class -- -- -- -- -- --
Total distributions (3,593) (6,115) (2,598) (4,890) (12,805) (12,808)
CAPITAL SHARE TRANSACTIONS (1):
Institutional class:
Proceeds from sales 19,181 35,097 20,866 32,461 107,374 225,170
Shares issued in connection with acquisition of
Managed Income Fund -- 38,342 -- -- -- --
Reinvestment of distributions 2,797 4,773 1,758 3,568 5,391 4,951
Payments for redemptions (31,932) (38,162) (11,706) (19,532) (29,612) (42,680)
Increase (decrease) in net assets from Institutional class
transactions (9,954) 40,050 10,918 16,497 83,153 187,441
Retail class A:
Proceeds from sales 3,886 2,920 139 200 1,948 2,212
Shares issued in connection with acquisition of
Managed Income Fund -- 4,574 -- -- -- --
Reinvestment of distributions 233 482 57 143 223 387
Payments for redemptions (5,696) (7,576) (355) (1,216) (1,691) (3,165)
Increase (decrease) in net assets from Retail class A
transactions (1,577) 400 (159) (873) 480 (566)
Retail class B:
Proceeds from sales -- 1 -- -- 8,706 7,180
Reinvestment of distributions -- -- -- -- 349 118
Payments for redemptions -- (2) -- -- (1,367) (255)
Increase (decrease) in net assets from Retail class B
transactions -- (1) -- -- 7,688 7,043
Increase (decrease) in net assets from capital share
transactions (11,531) 40,449 10,759 15,624 91,321 193,918
Total increase (decrease) in net assets (11,587) 41,640 11,013 19,159 85,864 206,619
NET ASSETS AT BEGINNING OF PERIOD 121,416 79,776 90,812 71,653 304,949 98,330
NET ASSETS AT END OF PERIOD (2) $109,829 $121,416 $101,825 $ 90,812 $390,813 $304,949
(1)Capital share transactions:
Institutional class:
Proceeds from sales 1,926 3,569 2,078 3,367 9,717 21,255
Shares issued in connection with acquisition of
Managed Income Fund -- 3,917 -- -- -- --
Reinvestment of distributions 282 484 175 369 487 467
Payments for redemptions (3,212) (3,873) (1,160) (2,012) (2,663) (4,012)
Total Institutional class transactions (1,004) 4,097 1,093 1,724 7,541 17,710
Retail class A:
Proceeds from sales 391 297 13 20 175 205
Shares issued in connection with acquisition of
Managed Income Fund -- 468 -- -- -- --
Reinvestment of distributions 24 49 6 15 20 37
Payments for redemptions (573) (773) (35) (126) (152) (301)
Total Retail class A transactions (158) 41 (16) (91) 43 (59)
Retail class B:
Proceeds from sales -- -- -- -- 787 667
Reinvestment of distributions -- -- -- -- 31 11
Payments for redemptions -- -- -- -- (123) (23)
Total Retail class B transactions -- -- -- -- 695 655
NET INCREASE (DECREASE) FROM SHARE TRANSACTIONS (1,162) 4,138 1,077 1,633 8,279 18,306
</TABLE>
(table continued from above)
<TABLE>
<CAPTION>
INTERMEDIATE
GOVERNMENT
BOND FUND
10/1/95 10/1/94
to to
3/31/96 9/30/95
<S> <C> <C>
OPERATIONS:
Investment income--net $ 3,259 $ 4,955
Net realized gain (loss) on investments 147 (76)
Net change in unrealized appreciation (depreciation) of
investments (737) 3,665
Net increase in net assets resulting from operations 2,669 8,544
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income--net:
Institutional class (3,181) (4,819)
Retail class A (91) (127)
Retail class B -- --
Net realized gain on investments:
Institutional class -- --
Retail class A -- --
Retail class B -- --
Return of capital
Institutional class -- --
Total distributions (3,272) (4,946)
CAPITAL SHARE TRANSACTIONS (1):
Institutional class:
Proceeds from sales 22,078 83,288
Shares issued in connection with acquisition of
Managed Income Fund -- --
Reinvestment of distributions 236 315
Payments for redemptions (4,611) (14,740)
Increase (decrease) in net assets from Institutional class
transactions 17,703 68,863
Retail class A:
Proceeds from sales 889 1,260
Shares issued in connection with acquisition of
Managed Income Fund -- --
Reinvestment of distributions 60 99
Payments for redemptions (668) (545)
Increase (decrease) in net assets from Retail class A
transactions 281 814
Retail class B:
Proceeds from sales -- --
Reinvestment of distributions -- --
Payments for redemptions -- --
Increase (decrease) in net assets from Retail class B
transactions -- --
Increase (decrease) in net assets from capital share
transactions 17,984 69,677
Total increase (decrease) in net assets 17,381 73,275
NET ASSETS AT BEGINNING OF PERIOD 103,028 29,753
NET ASSETS AT END OF PERIOD (2) $120,409 $103,028
(1)Capital share transactions:
Institutional class:
Proceeds from sales 2,357 9,271
Shares issued in connection with acquisition of
Managed Income Fund -- --
Reinvestment of distributions 25 34
Payments for redemptions (490) (1,614)
Total Institutional class transactions 1,892 7,691
Retail class A:
Proceeds from sales 94 137
Shares issued in connection with acquisition of
Managed Income Fund -- --
Reinvestment of distributions 6 11
Payments for redemptions (71) (60)
Total Retail class A transactions 29 88
Retail class B:
Proceeds from sales -- --
Reinvestment of distributions -- --
Payments for redemptions -- --
Total Retail class B transactions -- --
NET INCREASE (DECREASE) FROM SHARE TRANSACTIONS 1,921 7,779
</TABLE>
(2) Includes undistributed (distributions in excess of) net investment
income(000) of $1 and $38 for Limited Term Income Fund, $18 and $1 for
Intermediate Term Income Fund, $34 and $134 for Fixed Income Fund, $(4) and
$9 for Intermediate Government Bond Fund, $(4) and $1 for Intermediate Tax
Free Income Fund, $7 and $2 for Colorado Intermediate Tax Free Income Fund,
$(4) and $9 for Minnesota Insured Intermediate Tax Free Fund, $31 and $33
for Asset Allocation Fund, $240 and $203 for Balanced Fund, and $(85) and
$11 for Real Estate Securities Fund, at March 31, 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>
<CAPTION>
COLOARDO MINNESOTA INSURED
INTERMEDIATE INTERMEDIATE INTERMEDIATE ASSET REAL ESTATE
TAX FREE FUND TAX FREE FUND TAX FREE FUND ALLOCATION FUND BALANCED FUND SECURITIES FUND
10/1/95 10/1/94 10/1/95 10/1/94 10/1/95 10/1/94 10/1/95 10/1/94 10/1/95 10/1/95 10/1/95 6/30/95(3)
to to to to to to to to to to to to
3/31/96 9/30/95 3/31/96 9/30/95 3/31/96 9/30/95 3/31/96 9/30/95 3/31/96 9/30/95 3/31/96 9/30/95
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 1,180 $ 1,389 $ 1,229 $ 1,967 $ 1,612 $ 2,565 $ 721 $ 1,504 $ 3,836 $ 6,024 $ 244 $ 69
265 376 122 234 194 214 1,281 1,590 10,034 7,484 (9) --
(299) 1,232 (163) 2,043 (153) 2,478 1,471 4,397 6,422 18,934 460 170
1,146 2,997 1,188 4,244 1,653 5,257 3,473 7,491 20,292 32,442 695 239
(1,153) (1,344) (1,167) (1,904) (1,561) (2,470) (696) (1,451) (3,504) (5,355) (331) (58)
(32) (44) (57) (63) (64) (86) (17) (24) (237) (458) (4) --
-- -- -- -- -- -- (10) (6) (58) (32) (5) --
(313) -- (236) (2) (195) -- (1,575) (1,084) (7,190) (1,857) -- --
(9) -- (11) -- (7) -- (41) (15) (535) (188) -- --
-- -- -- -- -- -- (28) (1) (148) (7) -- --
-- -- -- -- -- -- -- -- -- -- -- (20)
(1,507) (1,388) (1,471) (1,969) (1,827) (2,556) (2,367) (2,581) (11,672) (7,897) (340) (78)
14,993 49,729 2,865 47,042 23,604 69,842 9,316 8,308 48,921 76,127 5,910 5,595
-- -- -- -- -- -- -- -- -- -- -- --
69 64 3 14 55 82 2,256 2,516 10,553 7,075 -- --
(3,392) (11,501) (4,377) (6,496) (9,531) (31,135) (4,847) (19,615) (23,821) (38,755) (236) --
11,670 38,292 (1,509) 40,560 14,128 38,789 6,725 (8,791) 35,653 44,447 5,674 5,595
821 397 705 1,496 1,569 878 377 298 2,136 1,737 219 1
-- -- -- -- -- -- -- -- -- -- -- --
31 36 40 29 47 71 56 37 744 640 2 --
(159) (622) (270) (74) (239) (307) (39) (145) (1,226) (2,783) (1) --
693 (189) 475 1,451 1,377 642 394 190 1,654 (406) 220 1
-- -- -- -- -- -- 958 543 4,532 2,775 208 1
-- -- -- -- -- -- 39 7 200 37 5 --
-- -- -- -- -- -- (92) (30) (392) (134) (41) --
-- -- -- -- -- -- 905 520 4,340 2,678 172 1
12,363 38,103 (1,034) 42,011 15,505 39,431 8,024 (8,081) 41,647 46,719 6,066 5,597
12,002 39,712 (1,317) 44,286 15,331 42,132 9,130 (3,171) 50,267 71,264 6,421 5,758
47,008 7,296 52,260 7,974 63,912 21,780 44,774 47,945 210,553 139,289 5,758 --
$59,010 $ 47,008 $50,943 $52,260 $79,243 $ 63,912 $53,904 $ 44,774 $260,820 $210,553 $12,179 $5,758
1,389 4,792 270 4,676 2,352 7,280 788 765 3,982 6,800 557 555
-- -- -- -- -- -- -- -- -- -- -- --
6 6 -- 2 5 8 192 241 865 648 -- --
(313) (1,103) (414) (631) (950) (3,183) (407) (1,868) (1,922) (3,493) (22) --
1,082 3,695 (144) 4,047 1,407 4,105 573 (862) 2,925 3,955 535 555
76 37 66 144 156 90 31 28 172 155 21 --
-- -- -- -- -- -- -- -- -- -- -- --
3 4 4 3 5 8 5 3 61 59 -- --
(15) (59) (25) (7) (24) (31) (3) (14) (99) (255) -- --
64 (18) 45 140 137 67 33 17 134 (41) 21 --
-- -- -- -- -- -- 81 50 366 241 21 --
-- -- -- -- -- -- 3 1 16 3 -- --
-- -- -- -- -- -- (7) (3) (31) (12) (4) --
-- -- -- -- -- -- 77 48 351 232 17 --
1,146 3,677 (99) 4,187 1,544 4,172 683 (797) 3,410 4,146 573 555
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS (000)
(Unaudited)
<TABLE>
<CAPTION>
EQUITY EQUITY DIVERSIFIED
INDEX FUND INCOME FUND GROWTH 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
3/31/96 9/30/95 3/31/96 9/30/95 3/31/96 9/30/95
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Investment income (loss)--net $ 2,777 $ 4,387 $ 1,050 $ 1,701 $ 1,117 $ 1,384
Net realized gain (loss) on investments 5,944 1,499 760 435 1,574 2,291
Net realized gain on futures contracts 2,603 1,525 -- -- -- --
Net realized gain on forward foreign currency contracts
and foreign currency transactions -- -- -- -- -- --
Net change in unrealized appreciation (depreciation) of
investments 15,708 40,664 3,945 5,876 12,613 21,333
Net change in unrealized appreciation on futures contracts 74 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 (decrease) in net assets resulting from
operations 27,106 48,090 5,755 8,012 15,304 25,008
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income--net:
Institutional class (2,758) (4,282) (1,025) (1,562) (1,211) (1,245)
Retail class A (32) (28) (36) (70) (24) (29)
Retail class B (17) (5) (25) (11) (9) (2)
Net realized gain on investments:
Institutional class (3,004) (1,427) (51) -- -- --
Retail class A (34) (7) (2) -- -- --
Retail class B (29) (1) (1) -- -- --
Return of capital:
Institutional class -- -- -- -- -- --
Total distributions (5,874) (5,750) (1,140) (1,643) (1,244) (1,276)
CAPITAL SHARE TRANSACTIONS (1):
Institutional class:
Proceeds from sales 87,082 47,941 8,509 35,073 57,474 91,647
Shares issued in connection with the aquisition
of Limited Volatility Stock Fund -- -- -- -- -- --
Reinvestment of distributions 5,206 5,459 118 196 346 411
Payments for redemptions (39,173) (40,076) (4,983) (6,696) (9,136) (14,227)
Increase (decrease) in net assets from Institutional class
transactions 53,115 13,324 3,644 28,573 48,684 77,831
Retail class A:
Proceeds from sales 2,540 1,205 414 623 2,708 877
Reinvestment of distributions 63 33 35 67 22 29
Payments for redemptions (688) (181) (273) (789) (1,594) (622)
Increase (decrease) in net assets from Retail class A
transactions 1,915 1,057 176 (99) 1,136 284
Retail class B:
Proceeds from sales 3,113 1,092 1,127 1,241 3,112 765
Reinvestment of distributions 45 5 25 10 9 2
Payments for redemptions (436) (24) (44) (82) (177) (18)
Increase in net assets from Retail class B transactions 2,722 1,073 1,108 1,169 2,944 749
Increase in net assets from capital share transactions 57,752 15,454 4,928 29,643 52,764 78,864
Total increase in net assets 78,984 57,794 9,543 36,012 66,824 102,596
NET ASSETS AT BEGINNING OF PERIOD 222,269 164,475 55,354 19,342 136,383 33,787
NET ASSETS AT END OF PERIOD (2) $301,253 $222,269 $ 64,897 $ 55,354 $203,207 $136,383
(1)Capital share transactions:
Institutional class:
Proceeds from sales 6,168 4,043 727 3,492 4,614 9,131
Shares issued in connection with the aquisition
of Limited Volatility Stock Fund -- -- -- -- -- --
Reinvestment of distributions 374 484 10 19 28 41
Payments for redemptions (2,807) (3,454) (425) (643) (746) (1,398)
Total Institutional class transactions 3,735 1,073 312 2,868 3,896 7,774
Retail class A:
Proceeds from sales 179 102 35 58 215 82
Reinvestment of distributions 5 3 3 7 2 3
Payments for redemptions (47) (16) (23) (75) (126) (63)
Total Retail class A transactions 137 89 15 (10) 91 22
Retail class B:
Proceeds from sales 221 89 97 117 256 70
Reinvestment of distributions 3 -- 2 1 1 --
Payments for redemptions (31) (2) (3) (8) (14) (1)
Total Retail class B transactions 193 87 96 110 243 69
NET INCREASE IN CAPITAL SHARES 4,065 1,249 423 2,968 4,230 7,865
</TABLE>
(table continued from above)
<TABLE>
<CAPTION>
STOCK FUND
10/1/95 10/1/94
to to
3/31/96 9/30/95
<S> <C> <C>
OPERATIONS:
Investment income (loss)--net $ 3,522 $ 5,063
Net realized gain (loss) on investments 20,490 17,763
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 23,783 35,581
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 (decrease) in net assets resulting from
operations 47,795 58,407
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income--net:
Institutional class (3,315) (4,669)
Retail class A (128) (182)
Retail class B (48) (29)
Net realized gain on investments:
Institutional class (18,031) (6,156)
Retail class A (799) (307)
Retail class B (505) (26)
Return of capital:
Institutional class -- --
Total distributions (22,826) (11,369)
CAPITAL SHARE TRANSACTIONS (1):
Institutional class:
Proceeds from sales 71,237 155,804
Shares issued in connection with the aquisition
of Limited Volatility Stock Fund 17,977 --
Reinvestment of distributions 13,875 7,982
Payments for redemptions (28,059) (50,899)
Increase (decrease) in net assets from Institutional class
transactions 75,030 112,887
Retail class A:
Proceeds from sales 4,237 3,938
Reinvestment of distributions 884 463
Payments for redemptions (1,094) (1,552)
Increase (decrease) in net assets from Retail class A
transactions 4,027 2,849
Retail class B:
Proceeds from sales 7,371 6,337
Reinvestment of distributions 541 54
Payments for redemptions (312) (195)
Increase in net assets from Retail class B transactions 7,600 6,196
Increase in net assets from capital share transactions 86,657 121,932
Total increase in net assets 111,626 168,970
NET ASSETS AT BEGINNING OF PERIOD 332,686 163,716
NET ASSETS AT END OF PERIOD (2) $444,312 $332,686
(1)Capital share transactions:
Institutional class:
Proceeds from sales 3,554 9,002
Shares issued in connection with the aquisition
of Limited Volatility Stock Fund 917 --
Reinvestment of distributions 715 487
Payments for redemptions (1,409) (2,902)
Total Institutional class transactions 3,777 6,587
Retail class A:
Proceeds from sales 213 218
Reinvestment of distributions 46 28
Payments for redemptions (54) (88)
Total Retail class A transactions 205 158
Retail class B:
Proceeds from sales 369 348
Reinvestment of distributions 28 3
Payments for redemptions (16) (10)
Total Retail class B transactions 381 341
NET INCREASE IN CAPITAL SHARES 4,363 7,086
</TABLE>
(2) Included undistributed (distribution in excess of) net investment income
(000) of $80 and $110 for Equity Index Fund, $68 and $104 for Equity Income
Fund, $19 and $146 for Diversified Growth Fund, $266 and $235, for Stock
Fund, $177 and $75 for Special Equity Fund, $176 and $317 for Regional
Equity Fund, ($60) and $19 for Emerging Growth Fund, ($1) and $0 for Health
Sciences Fund, $752 and $1,609 for International Fund and accumulated net
investment (loss) of ($118) and ($0) for Technology Fund at March 31, 1996
and September 30, 1995, respectively.
The accompanying notes are an integral part of the financial statements.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
HEALTH
SPECIAL REGIONAL EMERGING TECHNOLOGY SCIENCES INTERNATIONAL
EQUITY FUND EQUITY FUND GROWTH FUND FUND FUND FUND
10/1/95 10/1/94 10/1/95 10/1/94 10/1/95 10/1/94 10/1/95 10/1/94 1/31/96 10/1/95 10/1/94
to to to to to to to to to to to
3/31/96 9/30/95 3/31/96 9/30/95 3/31/96 9/30/95 3/31/96 9/30/95 3/31/96(3) 3/31/96 9/30/95
$ 1,788 $ 4,029 $ 634 $ 1,068 $ (34) $ 42 $ (118) $ (67) $ 8 $ (289) $ 82
20,051 15,970 4,287 16,157 736 1,122 3,951 3,397 -- (378) (5,987)
-- -- -- -- -- -- -- -- -- -- --
-- -- -- -- -- -- -- -- -- 437 1,921
(3,476) 4,572 14,878 37,100 3,912 5,699 (4,130) 6,007 (109) 3,000 8,360
-- -- -- -- -- -- -- -- -- -- --
-- -- -- -- -- -- -- -- -- 304 (202)
18,363 24,571 19,799 54,325 4,614 6,863 (297) 9,337 (101) 3,074 4,174
(1,584) (3,740) (730) (705) (45) (24) -- -- (9) (2,012) --
(79) (182) (41) (45) -- -- -- -- -- (17) --
(23) (32) (4) (1) -- -- -- -- -- (6) --
(15,365) (8,609) (13,266) (2,571) (1,245) (158) (3,429) (174) -- -- --
(848) (473) (1,063) (216) (14) (1) (179) (2) -- -- --
(454) (52) (696) (10) (8) -- (249) -- -- -- --
-- -- -- -- -- -- -- -- -- -- --
(18,353) (13,088) (15,800) (3,548) (1,312) (183) (3,857) (176) (9) (2,035) --
23,154 72,724 64,575 60,768 16,799 30,230 22,164 15,964 9,190 28,890 50,343
-- -- -- -- -- -- -- -- -- -- --
13,552 10,320 12,202 3,115 339 54 825 26 2 1,290 --
(37,069) (20,701) (15,192) (17,586) (1,593) (2,013) (4,406) (1,921) (91) (3,335) (8,022)
(363) 62,343 61,585 46,297 15,545 28,271 18,583 14,069 9,101 26,845 42,321
9,492 5,207 7,164 4,213 286 275 984 1,267 244 507 463
907 649 1,079 261 11 1 176 2 -- -- --
(10,075) (2,109) (1,944) (1,456) (57) (31) (269) (72) -- 11 (87)
(88) --
324 3,747 6,299 3,018 240 245 891 1,197 244 430 376
2,161 4,195 10,419 6,573 191 249 1,323 1,825 91 361 294
464 79 681 9 8 -- 237 -- -- 5 --
(244) (114) (635) (119) (16) (33) (422) (39) (5) (42) (32)
2,381 4,160 10,465 6,463 183 216 1,138 1,786 86 324 262
2,342 70,250 78,349 55,778 15,968 28,732 20,612 17,052 9,431 27,599 42,959
2,352 81,733 82,348 106,555 19,270 35,412 16,458 26,213 9,321 28,638 47,133
218,242 136,509 211,130 104,575 42,370 6,958 32,767 6,554 -- 95,582 48,449
$220,594 $218,242 $293,478 $211,130 $ 61,640 $ 42,370 $ 49,225 $ 32,767 $ 9,321 $124,220 $ 95,582
1,330 4,412 3,884 4,305 1,265 2,628 1,389 1,158 922 2,864 5,347
-- -- -- -- -- -- -- -- -- -- --
812 658 770 261 26 5 54 2 -- 130 --
(2,132) (1,236) (915) (1,227) (118) (170) (279) (136) (9) (330) (876)
10 3,834 3,739 3,339 1,173 2,463 1,164 1,024 913 2,664 4,471
542 305 434 289 21 22 61 79 24 51 49
54 41 68 22 1 -- 11 -- -- 1 --
(572) (121) (117) (106) (4) (2) (16) (4) -- (9) (9)
24 225 385 205 18 20 56 75 24 43 40
125 252 631 441 14 21 82 115 9 36 31
28 5 43 1 1 -- 16 -- -- 1 --
(14) (6) (39) (8) (1) (3) (26) (2) -- (4) (3)
139 251 635 434 14 18 72 113 9 33 28
173 4,310 4,759 3,978 1,205 2,501 1,292 1,212 946 2,740 4,539
</TABLE>
(3) The Health Sciences Fund commenced operations on January 31, 1996.
The accompanying notes are an integral part of the financial statements.
FINANCIAL HIGHLIGHTS
(Unaudited)
For the period ended March 31, 1996 and the periods ended September 30,
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 $0.027 $(0.027) $1.00 2.70%+ $2,430,940 0.45% 5.33% 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 $0.025 $(0.025) $1.00 2.57%+ $ 147,281 0.70% 5.06% 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 $0.022 $(0.022) $1.00 2.19%+ $ 459 1.45% 4.49% 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 $0.026 $(0.026) $1.00 2.62%+ $ 19,440 0.60% 5.06% 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 $0.026 $(0.026) $1.00 2.65%+ $ 721,728 0.45% 5.23% 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 $0.025 $(0.025) $1.00 2.57%+ $ 237,432 0.60% 5.10% 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 $0.026 $(0.026) $1.00 2.62%+ $ 198,758 0.45% 5.16% 0.54%
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 $0.025 $(0.025) $1.00 2.54%+ $1,228,344 0.60% 5.02% 0.69%
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.
* All ratios for the periods have 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 period ended March 31, 1996 and 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
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM END OF TOTAL
OF PERIOD INCOME INVESTMENTS INCOME CAPITAL GAINS PERIOD RETURN (A)
<S> <C> <C> <C> <C> <C> <C> <C>
LIMITED TERM INCOME
INSTITUTIONAL CLASS
1996* $ 9.92 $0.29 $ 0.01 $(0.30) $ -- $ 9.92 3.01%+
1995 9.85 0.56 0.07 (0.56) -- 9.92 6.57%
1994(1) 10.02 0.29 (0.17) (0.29) -- 9.85 1.24%+
RETAIL CLASS A
1996* $ 9.92 $0.30 $ -- $(0.30) $ -- $ 9.92 3.01%+
1995 9.85 0.56 0.07 (0.56) -- 9.92 6.57%
1994 10.06 0.44 (0.22) (0.43) -- 9.85 2.21%
1993(2) 10.00 0.29 0.07 (0.30) -- 10.06 3.61%+
RETAIL CLASS B
1995(3) $ 9.84 $0.13 $(0.08) $(0.14) $ -- $ 9.75 0.52%+
1994(4) 9.86 0.04 0.01 (0.07) -- 9.84 0.51%+
INTERMEDIATE TERM INCOME
INSTITUTIONAL CLASS
1996* $ 9.94 $0.27 $ 0.04 $(0.27) $(0.01) $ 9.97 3.13%+
1995 9.55 0.58 0.39 (0.58) -- 9.94 10.51%
1994(1) 10.01 0.31 (0.46) (0.31) -- 9.55 (1.48)%+
RETAIL CLASS A
1996* $ 9.94 $0.27 $ 0.04 $(0.27) $(0.01) $ 9.97 3.13%+
1995 9.55 0.59 0.38 (0.58) -- 9.94 10.51%
1994 10.22 0.46 (0.56) (0.46) (0.11) 9.55 (1.05)%
1993(2) 10.00 0.41 0.29 (0.41) (0.07) 10.22 7.21%+
FIXED INCOME
INSTITUTIONAL CLASS
1996* $10.97 $0.32 $(0.03) $(0.32) $(0.10) $10.84 2.61%+
1995 10.37 0.66 0.62 (0.65) (0.03) 10.97 12.86%
1994(1) 11.11 0.38 (0.74) (0.38) -- 10.37 (3.23)%+
RETAIL CLASS A
1996* $10.98 $0.30 $(0.04) $(0.30) $(0.10) $10.84 2.39%+
1995 10.37 0.66 0.61 (0.63) (0.03) 10.98 12.78%
1994 11.38 0.57 (0.89) (0.57) (0.12) 10.37 (2.92)%
1993 11.13 0.62 0.36 (0.61) (0.12) 11.38 9.20%
1992 10.59 0.66 0.60 (0.66) (0.06) 11.13 12.34%
1991(5) 10.01 0.65 0.58 (0.65) -- 10.59 12.48%+
1990(6) 10.44 0.74 (0.26) (0.74) (0.17) 10.01 5.14%
1989(6) 10.13 0.74 0.31 (0.74) -- 10.44 10.93%
1988(6)(7) 10.03 0.62 0.13 (0.65) -- 10.13 8.07%+
RETAIL CLASS B
1996* $10.94 $0.26 $(0.04) $(0.27) $(0.10) $10.79 2.06%+
1995 10.35 0.58 0.60 (0.56) (0.03) 10.94 11.75%
1994(4) 10.54 0.08 (0.17) (0.10) -- 10.35 (0.88)%+
INTERMEDIATE GOVERNMENT BOND
INSTITUTIONAL CLASS
1996* $ 9.29 $0.27 $(0.04) $(0.27) $ -- $ 9.25 2.51%+
1995 8.98 0.54 0.31 (0.54) -- 9.29 9.82%
1994(1) 9.41 0.27 (0.43) (0.27) -- 8.98 (1.66)%+
RETAIL CLASS A
1996* $ 9.29 $0.27 $(0.03) $(0.27) $ -- $ 9.26 2.62%+
1995 8.98 0.54 0.31 (0.54) -- 9.29 9.82%
1994 9.52 0.41 (0.51) (0.39) (0.05) 8.98 (1.13)%
1993 10.18 0.44 0.02 (0.44) (0.68) 9.52 4.99%
1992 10.25 0.60 0.28 (0.60) (0.35) 10.18 8.88%
1991(5) 10.01 0.65 0.24 (0.65) -- 10.25 9.13%+
1990(6) 10.05 0.75 (0.04) (0.75) -- 10.01 7.41%
1989(6) 9.99 0.74 0.06 (0.74) -- 10.05 8.35%
1988(6)(7) 10.03 0.58 (0.01) (0.61) -- 9.99 6.18%+
INTERMEDIATE TAX FREE
INSTITUTIONAL CLASS
1996* $10.72 $0.23 $ 0.02 $(0.23) $(0.07) $10.67 2.34%+
1995 10.28 0.49 0.43 (0.48) -- 10.72 9.15%
1994(1) 10.89 0.29 (0.61) (0.29) -- 10.28 (2.91)%+
RETAIL CLASS A
1996* $10.72 $0.21 $ 0.04 $(0.23) $(0.07) $10.67 2.34%+
1995 10.28 0.49 0.43 (0.48) -- 10.72 9.15%
1994 10.92 0.44 (0.57) (0.44) (0.07) 10.28 (1.25)%
1993 10.56 0.47 0.42 (0.47) (0.06) 10.92 8.66%
1992 10.34 0.53 0.22 (0.53) -- 10.56 7.23%
1991(5) 10.04 0.50 0.31 (0.50) (0.01) 10.34 8.15%+
1990(6) 10.08 0.56 (0.04) (0.56) -- 10.04 5.31%
1989(6) 10.19 0.56 (0.11) (0.56) -- 10.08 4.57%
1988(6)(7) 10.03 0.47 0.16 (0.47) -- 10.19 6.73%+
</TABLE>
(table continued from above)
RATIO OF RATIO OF
NET EXPENSES TO
RATIO OF INVESTMENT AVERAGE
NET ASSETS EXPENSES TO INCOME TO NET ASSETS
END OF AVERAGE AVERAGE (EXCLUDING PORTFOLIO
PERIOD (000) NET ASSETS NET ASSETS WAIVERS) TURNOVER RATE
$101,428 0.60% 5.84% 0.88% 27%
111,439 0.60 5.67 0.97 120
70,266 0.60 4.40 1.03 48
$ 8,401 0.60% 5.84% 1.13% 27%
9,977 0.60 5.60 1.22 120
9,509 0.60 4.17 1.23 48
121,800 0.60 3.61 1.27 104
$ -- 1.60% 5.22% 1.97% 120%
1 1.60 3.50 2.03 48
$ 99,538 0.70% 5.35% 0.90% 74%
88,375 0.70 5.94 0.94 69
68,445 0.58 4.81 1.07 177
$ 2,287 0.70% 5.34% 1.15% 74%
2,437 0.70 5.97 1.19 69
3,208 0.69 2.48 1.24 177
67,291 0.70 4.90 1.29 163
$367,903 0.70% 5.69% 0.86% 55%
289,816 0.70 6.28 0.94 106
90,187 0.61 5.53 0.92 142
$ 8,219 0.95% 5.44% 1.11% 55%
7,853 0.86 6.14 1.19 106
8,028 0.68 3.83 1.06 142
53,601 0.70 5.65 1.14 91
5,645 0.99 6.12 2.68 180
6,045 0.99 6.85 4.11 176
2,209 1.07 7.49 5.46 144
555 1.22 7.26 22.44 157
240 0.96 7.18 20.70 93
$ 14,691 1.70% 4.69% 1.86% 55%
7,280 1.70 5.12 1.94 106
115 1.70 4.89 1.92 142
$117,286 0.70% 5.83% 0.88% 14%
100,168 0.70 6.13 0.97 17
27,776 0.36 5.32 1.45 74
$ 3,123 0.70% 5.82% 1.13% 14%
2,860 0.70 6.10 1.22 17
1,977 0.53 4.49 2.14 74
3,716 0.71 4.00 4.73 182
589 0.99 6.03 14.14 101
1,756 0.99 6.99 6.76 100
1,573 1.08 7.57 5.55 40
1,501 1.19 7.49 9.65 72
375 0.95 6.78 17.20 0
$ 57,348 0.66% 4.38% 0.93% 14%
46,025 0.67 4.73 1.05 68
6,168 0.45 4.48 2.20 52
$ 1,662 0.66% 4.38% 1.18% 14%
983 0.67 4.71 1.30 68
1,128 0.59 4.13 2.78 52
2,969 0.71 4.31 5.09 27
725 0.99 4.83 16.09 23
637 0.99 5.35 15.48 15
537 1.08 5.58 13.85 4
491 1.09 5.57 19.55 4
425 0.84 5.87 13.60 0
For the period ended March 31, 1996 and the periods ended September 30,
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
VALUE BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM RETURN END OF TOTAL
OF PERIOD INCOME INVESTMENTS INCOME CAPITAL GAINS OF CAPITAL PERIOD RETURN (A)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
COLORADO INTERMEDIATE TAX FREE
INSTITUTIONAL CLASS
1996* $10.51 $0.25 $(0.01) $(0.25) $(0.05) $ -- $10.45 2.24%+
1995 10.16 0.48 0.36 (0.49) -- -- 10.51 8.47%
1994(8) 10.00 0.22 0.16 (0.22) -- -- 10.16 3.76%+
RETAIL CLASS A
1996* $10.51 $0.25 $(0.01) $(0.25) $(0.05) $ -- $10.45 2.24%+
1995 10.15 0.49 0.36 (0.49) -- -- 10.51 8.57%
1994(8) 10.00 0.21 0.16 (0.22) -- -- 10.15 3.66%+
MINNESOTA INSURED INTERMEDIATE TAX FREE
INSTITUTIONAL CLASS
1996* $ 9.92 $0.23 $ 0.03 $(0.23) $(0.03) $ -- $ 9.92 2.60%+
1995 9.59 0.45 0.33 (0.45) -- -- 9.92 8.34%
1994(9) 10.00 0.25 (0.41) (0.25) -- -- 9.59 (1.58%)+
RETAIL CLASS A
1996* $ 9.92 $0.22 $ 0.04 $(0.23) $(0.03) $ -- $ 9.92 2.60%+
1995 9.58 0.46 0.33 (0.45) -- -- 9.92 8.46%
1994(9) 10.00 0.25 (0.42) (0.25) -- -- 9.58 (1.68)%+
ASSET ALLOCATION
INSTITUTIONAL CLASS
1996* $11.72 $0.17 $ 0.66 $(0.17) $(0.41) $ -- $11.97 7.28%+
1995 10.38 0.38 1.58 (0.37) (0.25) -- 11.72 19.75%
1994(1) 10.68 0.20 (0.30) (0.20) -- -- 10.38 (0.90)%+
RETAIL CLASS A
1996* $11.73 $0.16 $ 0.66 $(0.16) $(0.41) $ -- $11.98 7.15%+
1995 10.39 0.36 1.58 (0.35) (0.25) -- 11.73 19.51%
1994 10.60 0.27 (0.08) (0.26) (0.14) -- 10.39 1.81%
1993(2) 10.00 0.19 0.60 (0.19) -- -- 10.60 8.01%+
RETAIL CLASS B
1996* $11.68 $0.12 $ 0.66 $(0.12) $(0.41) $ -- $11.93 6.84%+
1995 10.37 0.27 1.57 (0.28) (0.25) -- 11.68 18.51%
1994(4) 10.40 0.05 (0.03) (0.05) -- -- 10.37 0.19%
BALANCED
INSTITUTIONAL CLASS
1996* $12.13 $0.21 $ 0.84 $(0.21) $(0.41) $ -- $12.56 8.88%+
1995 10.54 0.40 1.73 (0.39) (0.15) -- 12.13 20.89%
1994(1) 10.86 0.25 (0.32) (0.25) -- -- 10.54 (0.64)%+
RETAIL CLASS A
1996* $12.12 $0.21 $ 0.83 $(0.20) $(0.41) $ -- $12.55 8.75%+
1995 10.54 0.38 1.72 (0.37) (0.15) -- 12.12 20.57%
1994 10.73 0.34 (0.02) (0.34) (0.17) -- 10.54 3.02%
1993(2) 10.00 0.28 0.75 (0.28) (0.02) -- 10.73 10.39%+
RETAIL CLASS B
1996* $12.09 $0.16 $ 0.83 $(0.16) $(0.41) $ -- $12.51 8.33%+
1995 10.53 0.29 1.71 (0.29) (0.15) -- 12.09 19.58%
1994(4) 10.66 0.06 (0.12) (0.07) -- -- 10.53 (0.55)%+
REAL ESTATE SECURITIES FUND
INSTITUTIONAL CLASS
1996* $10.37 $0.28 $ 0.52 $(0.36) $ -- $ -- $10.81 7.76%+
1995(10) 10.00 0.13 0.39 (0.11) -- (0.04) 10.37 5.19%+
RETAIL CLASS A
1996* $10.38 $0.26 $ 0.51 $(0.35) $ -- $ -- $10.80 7.57%+
1995(11) 10.37 -- 0.01 -- -- -- 10.38 0.00%
RETAIL CLASS B
1996* $10.37 $0.20 $0.51 $(0.33) $ -- $ -- $10.75 6.98%+
1995(11) 10.37 -- -- -- -- -- 10.37 0.00%
</TABLE>
(table continued from above)
<TABLE>
<CAPTION>
RATIO OF RATIO OF
NET EXPENSES TO
RATIO OF INVESTMENT AVERAGE AVERAGE
NET ASSETS EXPENSES TO INCOME TO NET ASSETS PORTFOLIO COMMISSION
END OF AVERAGE AVERAGE (EXCLUDING TURNOVER RATE
PERIOD (000) NET ASSETS NET ASSETS WAIVERS) RATE (B)
<S> <C> <C> <C> <C> <C>
$ 48,296 0.70% 4.66% 0.94% 7% --
50,071 0.70 4.84 1.02 19 --
7,281 0.69 4.51 4.71 4 --
$ 2,647 0.70% 4.66% 1.19% 7% --
2,189 0.70 4.83 1.27 19 --
693 0.69 4.51 4.96 4 --
$ 75,662 0.70% 4.55% 0.94% 5% --
61,693 0.70 4.76 1.00 38 --
20,272 0.67 4.57 1.59 22 --
$ 3,581 0.70% 4.55% 1.19% 5% --
2,219 0.70 4.74 1.25 38 --
1,508 0.67 4.57 1.84 22 --
$ 50,995 0.80% 2.92% 1.00% 20% $0.04
43,210 0.79 3.53 1.01 87 --
47,227 0.75 2.91 1.12 32 --
$ 1,412 1.05% 2.65% 1.25% 20% $0.04
993 0.99 3.29 1.26 87 --
707 0.75 2.01 1.29 32 --
56,393 0.75 2.40 1.34 31 --
$ 1,497 1.80% 1.88% 2.00% 20% $0.04
571 1.79 2.35 2.01 87 --
11 1.75 1.94 2.12 32 --
$ 235,694 0.80% 3.25% 0.88% 40% $0.07
192,145 0.79 3.61 0.94 77 --
125,285 0.75 3.51 1.05 98 --
17,510 1.05% 3.00% 1.13% 40% $0.07
15,288 0.99 3.41 1.19 77 --
13,734 0.77 2.63 1.24 98 --
111,225 0.75 3.31 1.29 77 --
$ 7,616 1.80% 2.24% 1.88% 40% $0.07
3,120 1.79 2.60 1.94 77 --
270 1.75 2.80 2.05 98 --
$ 11,776 0.80% 5.47% 1.60% 3% $0.07
5,756 0.80 6.01 2.34 0 --
$ 223 1.05% 4.57% 1.85% 3% $0.07
1 1.05 0.00 2.59 0 --
$ 180 1.80% 5.06% 2.60% 3% $0.07
1 1.80 0.00 3.34 0 --
</TABLE>
+ Returns are for the period indicated and have not been annualized.
* All ratios for the period have been annualized.
(A) Excluding sales charges.
(B) Average commission rate paid per share for security purchases and sales
made during the period.
(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) Closed operations on January 31, 1995. All ratios for the period have been
annualized.
(4) Retail Class B shares have been offered since August 15, 1994. All ratios
for the period have been annualized.
(5) 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.
(6) For the period ended October 31.
(7) Commenced operations on December 22, 1987. All ratios for the period have
been annualized.
(8) Commenced operations on April 4, 1994. All ratios for the period have been
annualized.
(9) Commenced operations on February 19, 1993. All ratios for the period have
been annualized.
(10) Commenced operations on June 30, 1995. All ratios for the period have
been annualized.
(11) Commenced operations on September 29, 1995. All ratios for the period
have been annualized.
For the period ended March 31, 1996 and 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
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM END OF TOTAL
OF PERIOD INCOME INVESTMENTS INCOME CAPITAL GAINS PERIOD RETURN (A)
<S> <C> <C> <C> <C> <C> <C> <C>
EQUITY INDEX
INSTITUTIONAL CLASS
1996* $13.34 $0.15 $ 1.38 $(0.15) $(0.18) $14.54 11.64%+
1995 10.67 0.28 2.75 (0.27) (0.09) 13.34 29.17%
1994(1) 10.85 0.20 (0.18) (0.20) -- 10.67 0.18%+
RETAIL CLASS A
1996* $13.35 $0.14 $ 1.38 $(0.14) $(0.18) $14.55 11.50%+
1995 10.68 0.25 2.76 (0.25) (0.09) 13.35 28.90%
1994 10.60 0.25 0.09 (0.25) (0.01) 10.68 3.25%
1993(2) 10.00 0.20 0.60 (0.20) -- 10.60 8.02%+
RETAIL CLASS B
1996* $13.30 $0.09 $ 1.38 $(0.09) $(0.18) $14.50 11.18%+
1995 10.66 0.23 2.68 (0.18) (0.09) 13.30 27.87%
1994(3) 10.68 0.01 0.04 (0.07) -- 10.66 0.48%+
EQUITY INCOME
INSTITUTIONAL CLASS
1996* $11.24 $0.21 $ 0.91 $(0.21) $(0.01) $12.14 10.12%+
1995 9.89 0.41 1.35 (0.41) -- 11.24 18.24%
1994(4) 9.90 0.07 (0.03) (0.05) -- 9.89 0.45%+
RETAIL CLASS A
1996* $11.24 $0.19 $ 0.91 $(0.20) $(0.01) $12.13 9.90%+
1995 9.89 0.41 1.33 (0.39) -- 11.24 18.06%
1994(5) 9.87 0.41 -- (0.39) -- 9.89 4.22%+
1993(6)(7) 10.00 0.57 (0.14) (0.56) -- 9.87 4.44%+
RETAIL CLASS B
1996* $11.20 $0.16 $ 0.90 $(0.16) $(0.01) $12.09 9.56%+
1995 9.88 0.33 1.32 (0.33) -- 11.20 17.10%
1994(3) 9.87 0.04 0.02 (0.05) -- 9.88 0.57%+
DIVERSIFIED GROWTH
INSTITUTIONAL CLASS
1996* $11.78 $0.09 $ 1.09 $(0.10) $ -- $12.86 10.03%+
1995 9.10 0.17 2.67 (0.16) -- $11.78 31.57%
1994(4) 8.92 0.03 0.18 (0.03) -- 9.10 2.36%+
RETAIL CLASS A
1996* $11.75 $0.07 $ 1.09 $(0.08) $ -- $12.83 9.93%+
1995 9.09 0.15 2.66 (0.15) -- 11.75 31.21%
1994(5) 9.39 0.10 (0.29) (0.11) -- 9.09 (2.07)%+
1993(6)(7) 10.00 0.11 (0.63) (0.09) -- 9.39 (5.18)%+
RETAIL CLASS B
1996* $11.73 $0.04 $ 1.07 $(0.05) $ -- $12.79 9.46%+
1995 9.09 0.09 2.65 (0.10) -- $11.73 30.29%
1994(3) 8.87 0.01 0.23 (0.02) -- 9.09 2.75%+
STOCK
INSTITUTIONAL CLASS
1996* $19.56 $0.22 $ 2.29 $(0.22) $(1.05) $20.80 13.36%+
1995 16.50 0.36 3.64 (0.35) (0.59) 19.56 25.50%
1994(1) 16.47 0.25 0.03 (0.25) -- 16.50 1.70%+
RETAIL CLASS A
1996* $19.57 $0.20 $ 2.28 $(0.20) $(1.05) $20.80 13.16%+
1995 16.51 0.33 3.64 (0.32) (0.59) 19.57 25.26%
1994 16.00 0.31 1.00 (0.30) (0.50) 16.51 8.35%
1993 14.04 0.22 1.99 (0.23) (0.02) 16.00 15.82%
1992 13.62 0.24 0.81 (0.29) (0.34) 14.04 7.88%
1991(8) 10.64 0.28 2.95 (0.22) (0.03) 13.62 30.49%+
1990(9) 12.09 0.25 (1.17) (0.25) (0.28) 10.64 (8.22)%
1989(9) 10.35 0.25 1.70 (0.20) (0.01) 12.09 20.33%
1988(9)(10) 10.03 0.27 0.35 (0.30) -- 10.35 6.40%+
RETAIL CLASS B
1996* $19.49 $0.13 $ 2.26 $(0.12) $(1.05) $20.71 12.78%+
1995 16.49 0.26 3.55 (0.22) (0.59) 19.49 24.20%
1994(3) 16.65 0.03 (0.10) (0.09) -- 16.49 (0.43)%+
SPECIAL EQUITY
INSTITUTIONAL CLASS
1996* $17.89 $0.15 $ 1.35 $(0.14) $(1.42) $17.83 9.06%+
1995 17.30 0.38 1.61 (0.38) (1.02) 17.89 12.84%
1994(1) 16.34 0.22 0.96 (0.22) -- 17.30 7.31%+
RETAIL CLASS A
1996* $17.89 $0.13 $ 1.34 $(0.12) $(1.42) $17.82 8.88%+
1995 17.30 0.35 1.60 (0.34) (1.02) 17.89 12.63%
1994 15.81 0.28 2.52 (0.28) (1.03) 17.30 18.70%
1993 13.61 0.23 2.32 (0.25) (0.10) 15.81 18.91%
1992 12.98 0.21 1.61 (0.27) (0.92) 13.61 15.17%
1991(8) 10.33 0.30 2.61 (0.26) -- 12.98 28.38%+
1990(9) 12.96 0.47 (2.03) (0.46) (0.61) 10.33 (13.24)%
1989(9) 11.55 0.47 1.39 (0.41) (0.04) 12.96 17.41%
1988(9)(10) 10.03 0.34 1.57 (0.39) -- 11.55 19.56%+
RETAIL CLASS B
1996* $17.83 $0.07 $ 1.34 $(0.07) $(1.42) $17.75 8.54%+
1995 17.29 0.29 1.51 (0.24) (1.02) 17.83 11.64%
1994(3) 16.51 0.01 0.85 (0.08) -- 17.29 5.22%+
</TABLE>
(table continued from above)
<TABLE>
<CAPTION>
RATIO OF RATIO OF
NET EXPENSES TO
RATIO OF INVESTMENT AVERAGE
NET ASSETS EXPENSES TO INCOME TO NET ASSETS PORTFOLIO AVERAGE
END OF AVERAGE AVERAGE (EXCLUDING TURNOVER COMMISSION
PERIOD (000) NET ASSETS NET ASSETS WAIVERS) RATE RATE
<C> <C> <C> <C> <C> <C>
$292,836 0.35% 2.24% 0.87% 11% $0.04
218,932 0.35 2.41 0.95 9 --
163,688 0.35 2.59 1.03 11 --
$ 4,318 0.60% 1.97% 1.12% 11% $0.04
2,140 0.57 2.16 1.20 9 --
758 0.35 2.23 1.23 11 --
139,957 0.35 2.52 1.30 1 --
$ 4,099 1.35% 1.22% 1.87% 11% $0.04
1,197 1.35 1.34 1.95 9 --
29 1.35 1.68 2.03 11 --
$ 60,074 0.75% 3.56% 0.96% 13% $0.07
52,126 0.75 4.11 1.06 23 --
17,489 0.75 5.61 1.14 108 --
$ 2,336 1.00% 3.31% 1.21% 13% $0.07
1,995 0.92 3.91 1.31 23 --
1,852 0.88 4.88 1.39 108 --
28,786 0.75 6.09 1.36 68 --
$ 2,487 1.75% 2.59% 1.96% 13% $0.07
1,233 1.75 3.05 2.06 23 --
1 1.75 4.39 2.14 108 --
$195,078 0.77% 1.44% 0.92% 14% $0.06
132,854 0.75 1.69 1.01 28 --
31,875 0.75 2.37 1.08 101 --
$ 4,133 1.02% 1.18% 1.17% 14% $0.06
2,710 0.92 1.52 1.26 28 --
1,900 0.90 1.15 1.33 101 --
31,084 0.78 1.26 1.25 5 --
$ 3,996 1.77% 0.39% 1.92% 14% $0.06
819 1.75 0.58 2.01 28 --
12 1.75 1.20 2.08 101 --
$410,771 0.80% 1.91% 0.88% 83% $0.07
312,559 0.79 2.10 0.94 52 --
154,949 0.75 2.28 1.01 83 --
$ 18,164 1.05% 1.66% 1.13% 83% $0.07
13,076 1.00 1.89 1.19 52 --
8,421 0.76 1.51 1.20 65 --
134,186 0.75 1.94 1.28 48 --
3,644 1.45 1.75 4.46 39 --
2,386 1.45 2.47 7.42 76 --
1,161 1.45 2.24 9.47 41 --
323 1.24 2.26 36.39 74 --
206 1.02 2.67 28.60 80 --
$ 15,377 1.80% 0.91% 1.88% 83% $0.07
7,051 1.79 1.10 1.94 52 --
346 1.75 1.58 2.01 65 --
$201,318 0.89% 1.73% 0.89% 91% $0.07
201,786 0.88 2.30 0.95 72 --
128,806 0.79 1.93 1.03 116 --
$ 11,990 1.14% 1.48% 1.14% 91% $0.07
11,609 1.09 2.08 1.20 72 --
7,333 0.81 1.88 1.23 116 --
81,899 0.81 2.07 1.31 104 --
3,586 1.50 1.61 4.18 146 --
3,423 1.50 2.60 5.13 116 --
2,761 1.50 4.09 4.21 113 --
2,000 1.38 4.07 8.68 102 --
578 1.20 4.02 15.60 51 --
$ 7,286 1.89% 0.71% 1.89% 91% $0.07
4,847 1.88 1.22 1.95 72 --
370 1.68 0.47 2.03 116 --
</TABLE>
For the period ended March 31, 1996 and the periods ended September 30,
For a share outstanding throughout the period
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
REALIZED
AND
NET ASSET UNREALIZED DIVIDENDS DISTRIBUTIONS NET ASSET
VALUE NET GAINS OR FROM NET DISTRIBUTIONS FROM VALUE
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM RETURN END OF TOTAL
OF PERIOD INCOME INVESTMENTS INCOME CAPITAL GAINS OF CAPITAL PERIOD RETURN (A)
REGIONAL EQUITY
INSTITUTIONAL CLASS
1996* $17.13 $ 0.04 $1.18 $(0.05) $(1.11) $ -- $17.19 7.74%+
1995 12.52 0.11 4.90 (0.08) (0.32) -- 17.13 41.40%
1994(1) 12.41 0.07 0.11 (0.07) -- -- 12.52 1.46%+
RETAIL CLASS A
1996* $17.12 $ 0.02 $1.18 $(0.04) $(1.11) $ -- $17.17 7.57%+
1995 12.52 0.08 4.90 (0.06) (0.32) -- 17.12 41.17%
1994 11.96 0.08 0.71 (0.07) (0.16) -- 12.52 6.76%
1993(2) 10.00 0.05 1.96 (0.05) -- -- 11.96 20.17%+
RETAIL CLASS B
1996* $16.99 $(0.01) $1.14 $(0.01) $(1.11) $ -- $17.00 7.16%+
1995 12.50 0.04 4.80 (0.03) (0.32) -- 16.99 39.98%
1994(3) 12.19 -- 0.33 (0.02) -- -- 12.50 2.73%+
EMERGING GROWTH
INSTITUTIONAL CLASS
1996* $13.41 $(0.01) $ 1.08 $(0.01) $(0.35) $-- $14.12 8.25%+
1995 10.56 0.03 2.99 (0.02) (0.15) -- 13.41 29.16%
1994(11) 10.00 0.01 0.56 (0.01) -- -- 10.56 5.68%+
RETAIL CLASS A
1996* $13.40 $(0.02) $ 1.08 $ -- $(0.35) $-- $14.11 8.15%+
1995 10.57 0.01 2.99 (0.02) (0.15) -- 13.40 28.82%
1994(11) 10.00 0.01 0.57 (0.01) -- -- 10.57 5.88%+
RETAIL CLASS B
1996* $13.29 $(0.04) $ 1.05 $ -- $(0.35) $-- $13.95 7.84%+
1995 10.55 (0.03) 2.92 -- (0.15) -- 13.29 27.89%
1994(3) 9.89 (0.01) 0.67 -- -- -- 10.55 6.67%+
TECHNOLOGY
INSTITUTIONAL CLASS
1996* $18.24 $ -- $(0.40) $ -- $(1.89) $-- $15.95 (1.73)%+
1995 11.19 (0.03) 7.31 -- (0.23) -- 18.24 66.22%
1994(11) 10.00 (0.01) 1.20 -- -- -- 11.19 11.90%+
RETAIL CLASS A
1996* $18.24 $(0.01) $(0.41) $ -- $(1.89) $-- $15.93 (1.85)%+
1995 11.19 (0.03) 7.31 -- (0.23) -- 18.24 66.22%
1994(11) 10.00 (0.01) 1.20 -- -- -- 11.19 11.90%+
RETAIL CLASS B
1996* $18.02 $(0.05) $(0.42) $ -- $(1.89) $-- $15.66 (2.17)%+
1995 11.17 (0.04) 7.12 -- (0.23) -- 18.02 64.52%
1994(3) 9.85 (0.02) 1.34 -- -- -- 11.17 13.40%+
HEALTH SCIENCES FUND
INSTITUTIONAL CLASS
1996*(12) $10.00 $ 0.01 $(0.14) $(0.01) $ -- $-- $ 9.86 (1.30)%+
RETAIL CLASS A
1996*(12) 10.00 0.01 (0.15) $(0.01) $ -- $-- $ 9.85 (1.42)%+
RETAIL CLASS B
1996*(12) 10.00 $ -- (0.14) $(0.01) $ -- $-- $ 9.85 (1.46)%+
INTERNATIONAL
INSTITUTIONAL CLASS
1996* $10.30 $ 0.13 $ 0.10 $(0.20) $ -- $-- $10.33 2.30%+
1995 10.22 0.01 0.07 -- -- -- 10.30 0.78%
1994(11) 10.00 (0.01) 0.23 -- -- -- 10.22 2.20%+
RETAIL CLASS A
1996* $10.28 $ 0.13 $ 0.09 $(0.18) $ -- $-- $10.32 2.24%+
1995 10.21 -- 0.07 -- -- -- 10.28 0.69%
1994(13) 9.98 (0.01) 0.24 -- -- -- 10.21 2.30%+
RETAIL CLASS B
1996* $10.20 $ 0.13 $ 0.05 $(0.16) $ -- $-- $10.22 1.82%+
1995 10.21 (0.03) 0.02 -- -- -- 10.20 (0.10)%
1994(3) 10.23 (0.01) (0.01) -- -- -- 10.21 (0.20)%+
</TABLE>
(table continued from above)
RATIO OF RATIO OF
NET EXPENSES TO
RATIO OF INVESTMENT AVERAGE AVERAGE
NET ASSETS EXPENSES TO INCOME TO NET ASSETS PORTFOLIO COMMISSION
END OF AVERAGE AVERAGE (EXCLUDING TURNOVER RATE
PERIOD (000) NET ASSETS NET ASSETS WAIVERS) RATE (B)
$253,461 0.86% 0.56% 0.89% 10% $0.07
188,583 0.84 0.78 0.95 42 --
96,045 0.80 0.82 1.05 41 --
$ 21,574 1.11% 0.31% 1.14% 10% $0.07
14,917 1.05 0.58 1.20 42 --
8,345 0.82 0.59 1.25 41 --
58,427 0.80 0.59 1.30 28 --
$ 18,443 1.86% 0.45% 1.89% 10% $0.07
7,630 1.84 (0.25) 1.95 42 --
185 1.80 (0.41) 2.05 41 --
$ 60,509 0.87% (0.13)% 0.97% 17% $0.07
41,716 0.84 0.20 1.19 51 --
6,849 0.80 0.23 2.59 19 --
$ 659 1.12% (0.38)% 1.22% 17% $0.07
386 1.04 0.00 1.44 51 --
91 0.79 0.23 2.84 19 --
$ 472 1.87% (1.14)% 1.97% 17% $0.07
268 1.84 (0.83) 2.19 51 --
18 1.80 (0.85) 3.59 19 --
$ 44,163 0.90% (0.55)% 1.00% 76% $0.07
29,272 0.88 (0.35) 1.30 74 --
6,491 0.80 (0.21) 3.12 43 --
$ 2,170 1.15% (0.80)% 1.25% 76% $0.07
1,464 1.13 (0.61) 1.55 74 --
61 0.80 (0.21) 3.37 43 --
$ 2,892 1.90% (1.55)% 2.00% 76% $0.07
2,031 1.88 (1.41) 2.30 74 --
2 1.80 (1.44) 4.12 43 --
$ 8,995 0.90% (0.69)% 2.22% 0% $0.07
$ 241 1.15% (0.37)% 2.47% 0% $0.07
$ 85 1.90% (0.45)% 3.22% 0% $0.07
$122,261 1.72% (0.54)% 1.72% 43% $0.04
94,400 1.74 0.12 1.81 57 --
47,963 1.75 (0.19) 2.05 16 --
$ 1,320 1.97% (0.78)% 1.97% 43% $0.04
876 1.93 (0.13) 2.06 57 --
464 1.75 (0.26) 2.30 16 --
$ 639 2.72% (1.44)% 2.72% 43% $0.04
306 2.76 (0.95) 2.81 57 --
22 2.75 (0.71) 3.05 16 --
+ Returns are for the period indicated and have not been annualized.
* All ratios for the period have been annualized.
(A) Excluding sales charges.
(B) Average commission rate paid per share for the security purchases and
sales made during the period.
(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) Retail Class B shares have been offered since August 15, 1994. All ratios
for the period have been annualized.
(4) Institutional Class shares have been offered since August 15, 1994. All
ratios for the period have been annualized.
(5) On April 28, 1994 the Board of Directors approved a change in this Fund's
fiscal year end from November 30 to September 30, effective September 30,
1994.
All ratios for the period have been annualized.
(6) For the period ended November 30.
(7) Commenced operations on December 18, 1992. All ratios for the period have
been annualized.
(8) 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.
(9) For the period ended October 31.
(10) Commenced operations on December 22, 1987. All ratios for the period have
been annualized.
(11) Commenced operations on April 4, 1994. All ratios for the period have
been annualized.
(12) Commenced operations on January 31, 1996. All ratios for the period have
been annualized.
(13) Retail Class A shares have been offered since April 7, 1994. All ratios
for the period have been annualized.
NOTES TO FINANCIAL STATEMENTS----MARCH 31, 1996
(Unaudited)
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, Fixed Income Fund, Intermediate Government Bond Fund, Intermediate Tax
Free Fund, Colorado Intermediate Tax Free Fund, Minnesota Insured
Intermediate Tax Free Fund, Asset Allocation Fund, Balanced Fund, Real Estate
Securities Fund, Equity Index Fund, Equity Income Fund, Diversified Growth
Fund, Stock Fund, Special Equity Fund, Regional Equity Fund, Emerging Growth
Fund, Technology Fund, Health Sciences Fund, and International 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. 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. 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.
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, Fixed Income Fund,
Intermediate Government Bond Fund, Intermediate Tax Free Fund, Colorado
Intermediate Tax Free Fund, Minnesota Insured Intermediate Tax Free Fund,
Asset Allocation Fund, Balanced Fund, Equity Index Fund, Equity Income Fund,
Diversified Growth Fund, Stock Fund and Special Equity Fund declare and pay
income dividends monthly. Regional Equity Fund, Emerging Growth Fund,
Technology Fund, Real Estate Securities Fund and Health Sciences 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.
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 Company 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.
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. The fee for the International Fund is equal to an
annual rate of 1.25% of average daily net assets. Through a separate
contractual agreement, First Trust National Association, an affiliate of the
Adviser, serves as the Funds' custodian. Marvin & Palmer Associates, Inc.,
serves as Sub-Adviser to the International Fund pursuant to a Sub-Advisory
Agreement with the Adviser.
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 March 31, 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):
<TABLE>
<CAPTION>
WAIVER OF
INVESTMENT WAIVER OF
ADVISORY DISTRIBUTION
FEES FEES (1)
<S> <C> <C>
Prime Obligations Fund $1,079 $--
Government Obligations Fund 385 --
Treasury Obligations Fund 587 --
Limited Term Income Fund 171 10
Intermediate Term Income Fund 91 3
Fixed Income Fund 286 --
Intermediate Government
Bond Fund 103 4
Intermediate Tax Free Fund 73 2
Colorado Intermediate Tax
Free Fund 62 3
Minnesota Insured
Intermediate Tax Free Fund 83 4
Asset Allocation Fund 51 --
Balanced Fund 96 --
Real Estate Securities Fund 36 --
Equity Index Fund 660 --
Equity Income Fund 64 --
Diversified Growth Fund 118 --
Stock Fund 146 --
Special Equity Fund -- --
Regional Equity Fund 28 --
Emerging Growth Fund 25 --
Technology Fund 19 --
Health Sciences Fund 15 --
International Fund 1 --
</TABLE>
(1) Retail Class A
For the period ended March 31, 1996, legal fees and expenses were paid to a law
firm of which the Secretary of the Funds is a partner.
DST Systems, Inc. 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 provides redemption of such
shares.
<TABLE>
CONTINGENT DEFERRED SALES CHARGE
YEAR SINCE AS A PERCENTAGE OF DOLLAR
PURCHASE AMOUNT SUBJECT TO CHARGE
<S> <C> <C>
First 5.00%
Second 5.00%
Third 4.00%
Fourth 3.00%
Fifth 2.00%
Sixth 1.00%
Seventh 0.00%
Eighth 0.00%
</TABLE>
For the period ended March 31, 1996, sales charges retained by SFS for
distributing the Funds' shares were approximately $58,000.
4 INVESTMENT SECURITY TRANSACTIONS
During the period ended March 31, 1996, purchases of securities and proceeds
from sales of securities, other than temporary investments in short-term
securities, were as follows (000):
<TABLE>
<CAPTION>
U.S. GOVERNMENT OTHER INVESTMENT
SECURITIES SECURITIES
PURCHASES SALES PURCHASES SALES
<S> <C> <C> <C> <C>
Limited Term
Income Fund $ 3,116 $ 3,312 $ 16,634 $ 34,283
Intermediate Term
Income Fund 56,709 59,681 3,223 1,657
Fixed Income Fund 149,950 157,599 34,715 3,607
Intermediate
Government
Bond Fund 24,283 14,505 -- --
Intermediate Tax
Free Fund -- -- 17,999 6,775
Colorado
Intermediate Tax
Free Fund -- -- 3,524 4,094
Minnesota Insured
Intermediate Tax
Free Fund -- -- 16,452 3,216
Asset Allocation
Fund 4,489 2,412 7,301 3,992
Balanced Fund 53,458 46,580 49,088 35,817
Real Estate
Securities Fund -- -- 6,197 294
Equity Index Fund -- -- 55,301 23,820
Equity Income Fund -- -- 11,075 6,790
Diversified Growth
Fund -- -- 65,631 20,823
Stock Fund -- -- 141,025 94,937
Special Equity
Fund -- -- 182,267 161,932
Regional Equity
Fund -- -- 81,704 21,398
Emerging Growth
Fund -- -- 22,207 7,806
Technology Fund -- -- 46,773 28,433
Health Sciences
Fund -- -- 8,235 --
International Fund -- -- 42,642 64,815
</TABLE>
At March 31, 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 March 31, 1996 is as follows
(000):
<TABLE>
<CAPTION>
AGGREGATE AGGREGATE
GROSS GROSS
APPRECIATION DEPRECIATION NET
<S> <C> <C> <C>
Limited Term Income Fund $ 375 $ (206) $ 169
Intermediate Term Income
Fund 354 (934) (580)
Fixed Income Fund 3,280 (3,780) (500)
Intermediate Government
Bond Fund 2,747 (143) 2,604
Intermediate Tax Free Fund 979 (144) 835
Colorado Intermediate
Tax Free Fund 1,882 (34) 1,848
Minnesota Insured
Intermediate Tax Free Fund 2,261 (188) 2,073
Asset Allocation Fund 7,599 (704) 6,895
Balanced Fund 28,982 (2,241) 26,741
Real Estate Securities Fund 706 (76) 630
Equity Index Fund 67,623 (5,000) 62,623
Equity Income Fund 10,313 (559) 9,754
Diversified Growth Fund 36,177 (1,948) 34,229
Stock Fund 73,419 (2,397) 71,022
Special Equity Fund 19,664 (8,124) 11,540
Regional Equity Fund 68,982 (7,101) 61,881
Emerging Growth Fund 12,596 (2,746) 9,850
Technology Fund 5,804 (3,196) 2,608
Health Sciences Fund 295 (404) (109)
International Fund 15,622 (2,953) 12,669
</TABLE>
5 DEFERRED ORGANIZATIONAL COSTS
Organizational costs have been capitalized by the Funds and are being
amortized over sixty months commencing with operations.
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.
The following forward foreign currency contracts were outstanding at March
31, 1996.
<TABLE>
<CAPTION>
INTERNATIONAL FUND
NET
IN UNREALIZED
CONTRACTS TO EXCHANGE APPRECIATION/
SETTLEMENT DELIVER FOR (DEPRECIATION)
DATES (000) (000) (000)
<S> <C> <C> <C> <C> <C>
Foreign Currency
Sales 5/2/96 CH 9,160 $ 7,701 $(27)
5/2/96 DM 5,730 3,888 (1)
5/2/96 FF 8,800 1,744 (5)
5/2/96 FI 3,240 704 3
5/2/96 JY 3,417,060 32,118 20
5/2/96 NL 10,670 6,475 2
5/2/96 NK 3,480 542 (1)
5/2/96 SK 55,230 8,338 87
5/2/96 UK 6,320 9,624 (8)
$71,134 $ 70
</TABLE>
CURRENCY LEGEND
CH Swiss Franc
DM German Marc
FF French Franc
FI Finnish Mark
JY Japanese Yen
NL Netherlands Guilder
NK Norwegian Krona
SK Swedish Krona
UK British Pounds Sterling
7 FUTURES CONTRACTS
The Equity Index Fund's investment in S&P 500 Index futures contracts is
designed to maintain sufficient liquidity to meet redemption requests and to
increase the level of Fund assets devoted to replicating the composition of
the S&P 500 Index while reducing transaction costs. Risks of entering into
S&P 500 Index futures contracts include the possibility that there may be an
illiquid market and that a change in the value of the contract may not
correlate with changes in the underlying securities. At March 31, 1996, open
long S&P 500 Index futures contracts were as follows:
<TABLE>
<CAPTION>
NUMBER UNREALIZED
OF TRADE SETTLEMENT GAIN/(LOSS)
CONTRACTS PRICE MONTH (000)
<S> <C> <C> <C>
27 $645.30 June 1996 $80
11 649.00 June 1996 12
2 639.80 June 1996 11
10 649.50 June 1996 9
2 647.00 June 1996 4
2 649.05 June 1996 2
10 650.90 June 1996 2
1 648.95 June 1996 2
3 657.35 June 1996 (9)
4 655.80 June 1996 (9)
10 652.25 June 1996 (5)
2 655.60 June 1996 (4)
1 658.30 June 1996 (4)
2 653.20 June 1996 (2)
10 651.30 June 1996 0
$89
</TABLE>
8 CONCENTRATION OF CREDIT RISK
The Intermediate Tax Free Fund, Colorado Intermediate Tax Free Fund, and
Minnesota Insured 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 March 31, 1996, the percentage of portfolio investments by each
revenue source was as follows:
<TABLE>
<CAPTION>
MINNESOTA
INSURED
INTERMEDIATE INTERMEDIATE COLORADO
TAX FREE TAX FREE INTERMEDIATE
FUND FUND TAX FREE FUND
<S> <C> <C> <C>
Revenue Bonds:
Education Bonds 4% 5% 6%
Health Care Bonds 13 15 3
Transportation Bonds 2 4 9
Utility Bonds 13 10 8
Housing Bonds 10 21 5
Pollution Control Bonds 4 5 3
Public Facility Bonds 5 1 2
Industrial Bonds 1 0 1
Other 15 10 8
General Obligations: 31 25 55
Anticipation Notes: 2 4 0
100% 100% 100%
</TABLE>
The rating of long-term debt as a percentage of total value of investments at
March 31, 1996 is as follows:
<TABLE>
<CAPTION>
MINNESOTA
INSURED
INTERMEDIATE INTERMEDIATE COLORADO
TAX FREE TAX FREE INTERMEDIATE
FUND FUND TAX FREE FUND
<S> <C> <C> <C>
Standard & Poors/Moody's:
Ratings:
AAA/Aaa 60% 51% 75%
AA/Aa 27 30 7
A/A 7 16 11
BBB/Baa 2 1 0
NR 4 2 7
100% 100% 100%
</TABLE>
Securities rated by only one agency are shown in that category. Securities
rated by both agencies are shown with their highest rating.
9 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 on investments, and
14,416,584 of paid-in-capital for Institutional Class) respectively, resulting
in combined net assets of $390,498,502 on January 26, 1996.
NOTICE TO SHAREHOLDERS
SHAREHOLDERS VOTING RESULTS
A special meeting of shareholders was called for January 22, 1996, at which
the shareholders of Limited Volatility Stock voted on a proposal to approve
an agreement and plan for reorganization. The plan provided for the
acquisition of all the assets and the assumption of all liabilities of
Limited Volatility Stock Fund by Stock Fund. The results of the voting were
as follows:
FOR 1,292,321
Against 0
Abstained 2,000
There were no other proposals voted on at such meeting.
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 P.L.L.P.
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.
FAIF-1303 5/96
