FIRST AMERICAN INVESTMENT FUNDS, INC.
FIRST AMERICAN FUNDS, INC.
1997 ANNUAL REPORT
THE POWER OF DISCIPLINED INVESTING
[3 PHOTOS]
<PAGE>
TABLE OF CONTENTS
September 30, 1997
Message To Shareholders ...............................................Page 1
Economic and Investment Review ........................................Page 2
Portfolio Performance Discussion ......................................Page 5
New Funds ........................................................Page 5
Money Market Funds ...............................................Page 5
Treasury Obligations
Government Obligations
Prime Obligations
Tax Free Income Funds ............................................Page 6
Colorado Intermediate Tax Free Fund
Minnesota Insured Intermediate Tax Free Fund
Intermediate Tax Free Fund
Fixed Income Funds ...............................................Page 7
Limited Term Income Fund
Intermediate Term Income Fund
Intermediate Government Bond Fund
Fixed Income Fund
Diversified Funds ................................................Page 9
Asset Allocation Fund
Balanced Fund
Growth and Income Funds ..........................................Page 11
Real Estate Securities Fund
Equity Income Fund
Equity Index Fund
Stock Fund
Diversified Growth Fund
Growth Funds .....................................................Page 16
Special Equity Fund
Regional Equity Fund
Emerging Growth Fund
International Fund
Health Sciences Fund
Technology Fund
First American Funds Footnotes ...................................Page 22
Independent Auditors' Report ..........................................Page 23
Statements of Net Assets ..............................................Page 25
Statements of Operations ..............................................Page 111
Statements of Changes .................................................Page 117
Financial Highlights ..................................................Page 122
Notes to Financial Statement ..........................................Page 129
Notice to Shareholders ................................................Page 139
<PAGE>
MESSAGE TO SHAREHOLDERS
September 30, 1997
Dear Shareholder:
On behalf of the Board of Directors of First American Funds and First
American Investment Funds I am pleased to report to you that the past year was
another year of solid investment performance and tremendous asset growth. As of
September 30, 1997, total assets had surpassed $16.8 billion, up from $9.8
billion one year ago.
The past year produced exciting and, at times, breathtaking rides in the
stock and bond markets. The market fluctuations of the past year reinforce two
vital investment principles: investors should take a long-term approach to
investing; and a balanced portfolio of stock, fixed income and money market
funds tailored to your risk tolerance and investment objectives can help to
reduce the volatility.
In August, three new First American Funds were introduced. The OREGON
INTERMEDIATE TAX FREE and CALIFORNIA INTERMEDIATE TAX FREE FUNDS extend the tax
free fund offerings to five funds. The introduction of the MICRO CAP VALUE FUND
expanded our equity offerings to 14 funds. In November, we will introduce the
SMALL CAP VALUE, INTERNATIONAL INDEX and TAX FREE OBLIGATIONS FUNDS.
In this report you will learn about the year's economic and investment
environment and how it affected Fund results. I would urge you to read the
report closely.
The Board of Directors thanks you for your continued support and confidence
in First American Funds. We are confident that the Funds' tradition of
conservative management, competitive results and innovative products will
continue to serve you well.
Sincerely,
/s/ Virginia L. Stringer
Virginia L. Stringer
Chairman
First American Investment Funds, Inc.
First American Funds, Inc.
<PAGE>
ECONOMIC AND INVESTMENT REVIEW
September 30, 1997
The close of the First American Funds' fiscal year marked a very successful
period for investors. For the fiscal year ended September 30, 1997, the S&P 500
Composite Index produced a 40.43% total return. The Index produced 29.89% and
20.75% average annual returns for the trailing three- and five-year periods,
respectively. International equity ownership provided more modest total returns
of 12.19% for the fiscal year and 8.84% and 12.34% annualized for the three- and
five-year periods as measured by the Morgan Stanley MSCI EAFE Index. Returns
from the fixed income markets, measured by the Lehman Government/Corporate Bond
Index, were 9.59% for the fiscal year and 9.41% and 6.95% for the three- and
five-year periods. The yield on 30- year Treasury bonds fell from 7.82% at the
end of September 1994 and 7.40% in September 1992 to 6.40% at the close of the
fiscal year.
THE STOCK MARKET
Line graph depicting the yields of 30 year S&P 500 Index and NASDAQ Composite.
[PLOT POINTS GRAPH]
S&P 500 NASDAQ Composite
Jan-85 172 261
Jan 86 208 329
Jan-87 265 384
Jan-88 250 339
Jan-89 285 389
Jan-90 340 439
Jan-91 325 377
Jan-92 416 616
Jan-93 435 691
Jan-94 473 788
Jan-95 465 758
Jan-90 340 439
Jan-96 614 1025
Jan-97 766 1345
Sep-97 927 1596
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TREASURY YIELDS
Line graph depicting the yields of 30 year Treasury Bond and three month
Treasury Bills.
[PLOT POINTS GRAPH]
30 year 3 month 30 year 3 month
bonds bills bonds bills
11.52 8.06 90 8.24 6.74
Jan-85 11.45 7.76 Jan-91 8.27 6.22
Feb-85 11.47 8.26 Feb-91 8.03 5.94
Mar-85 11.81 8.52 Mar-91 8.29 5.91
Apr-85 11.47 7.95 Apr-91 8.21 5.65
May-85 11.05 7.48 May-91 8.27 5.46
Jun-85 10.45 6.95 Jun-91 8.47 5.57
Jul-85 10.5 7.08 Jul-91 8.45 5.58
Aug-85 10.56 7.13 Aug-91 8.14 5.33
Sep-85 10.61 7.1 Sep-91 7.95 5.22
Oct-85 10.5 7.16 Oct-91 7.93 4.99
Nov-85 10.06 7.24 Nov-91 7.92 4.56
85 9.54 7.1 91 7.7 4.07
Jan-86 9.4 7.07 Jan-92 7.58 3.8
Feb-86 8.93 7.06 Feb-92 7.85 3.84
Mar-86 7.96 6.56 Mar-92 7.97 4.04
Apr-86 7.39 6.06 Apr-92 7.96 3.75
May-86 7.52 6.15 May-92 7.89 3.63
Jun-86 7.57 6.21 Jun-92 7.84 3.66
Jul-86 7.27 5.83 Jul-92 7.6 3.21
Aug-86 7.33 5.53 Aug-92 7.39 3.13
Sep-86 7.62 5.21 Sep-92 7.34 2.91
Oct-86 7.7 5.18 Oct-92 7.53 2.86
Nov-86 7.52 5.35 Nov-92 7.61 3.13
86 7.37 5.53 92 7.44 3.22
Jan-87 7.39 5.43 Jan-93 7.34 3
Feb-87 7.54 5.59 Feb-93 7.09 2.93
Mar-87 7.55 5.59 Mar-93 6.82 2.95
Apr-87 8.25 5.64 Apr-93 6.85 2.87
May-87 8.78 5.66 May-93 6.92 2.96
Jun-87 8.57 5.67 Jun-93 6.81 3.07
Jul-87 8.64 5.69 Jul-93 6.63 3.04
Aug-87 8.97 6.04 Aug-93 6.32 3.02
Sep-87 9.59 6.4 Sep-93 6 2.95
Oct-87 9.61 6.13 Oct-93 5.94 3.02
Nov-87 8.95 5.69 Nov-93 6.21 3.1
87 9.12 5.77 93 6.25 3.06
Jan-88 8.83 5.81 Jan-94 6.29 2.98
Feb-88 8.43 5.66 Feb-94 6.49 3.25
Mar-88 8.63 5.7 Mar-94 6.91 3.5
Apr-88 8.95 5.91 Apr-94 7.27 3.68
May-88 9.23 6.26 May-94 7.41 4.14
Jun-88 9 6.46 Jun-94 7.4 4.14
Jul-88 9.14 6.73 Jul-94 7.58 4.33
Aug-88 9.32 7.06 Aug-94 7.49 4.48
Sep-88 9.06 7.24 Sep-94 7.71 4.62
Oct-88 8.89 7.35 Oct-94 7.94 4.95
Nov-88 9.02 7.76 Nov-94 8.08 5.29
88 9.01 8.07 94 7.87 5.6
Jan-89 8.93 8.26 Jan-95 7.85 5.71
Feb-89 9.01 8.53 Feb-95 7.61 5.77
Mar-89 9.17 8.82 Mar-95 7.45 5.73
Apr-89 9.03 8.65 Apr-95 7.35 5.82
May-89 8.83 8.43 May-95 6.95 5.67
Jun-89 8.27 8.15 Jun-95 6.57 5.63
Jul-89 8.08 7.88 Jul-95 6.72 5.42
Aug-89 8.12 7.9 Aug-95 6.86 5.55
Sep-89 8.15 7.75 Sep-95 6.55 5.28
Oct-89 8 7.64 Oct-95 6.37 5.28
Nov-89 7.9 7.69 Nov-95 6.26 5.36
89 7.9 7.63 95 6.06 5.14
Jan-90 8.26 7.64 Jan-96 6.05 5
Feb-90 8.5 7.74 Feb-96 6.24 4.83
Mar-90 8.56 7.9 Mar-96 6.6 4.96
Apr-90 8.76 7.77 Apr-96 6.79 4.95
May-90 8.73 7.74 May-96 6.93 5.02
Jun-90 8.46 7.73 Jun-96 7.06 5.09
Jul-90 8.5 7.62 Jul-96 7.03 5.15
Aug-90 8.86 7.45 Aug-96 6.84 5.05
Sep-90 9.03 7.36 Sep-96 7.03 5.09
Oct-90 8.86 7.17 Oct-96 6.81 4.99
Nov-90 8.54 7.06 Nov-96 6.49 5.16
96 6.327 5.03
Jan-97 6.83 5.03
Feb-97 6.69 5.01
Mar-97 6.93 5.27
Apr-97 7.088 5.281
May-97 6.75 5.27
Jun-97 6.70 5.25
Jul-97 6.25 5.20
Aug-97 6.80 5.10
Sep-97 7.08 5.01
One need not look far to discover the confluence of favorable factors that
has supported the positive investment environment. Healthy domestic economic
growth, combined with declining inflation expectations, and an aging
population's heightened focus on investing for financial security have produced
an ideal setting for the stock and bond markets. Confident consumers have
benefited from a high level of job availability, higher real incomes, and growth
in their net worth as the securities markets advanced. Aggressive capital
spending strengthened the United States' international competitive position,
while the promise of a balanced federal budget built the confidence of our
overseas creditors.
Moderation in everything is often mentioned as a prescription for long life
for investors - so too for market advances. Clearly, economic growth at a
moderate pace that does not encourage inflation has been the source of today's
accommodative monetary policy. Knowing the importance of monetary policy to the
stock and bond markets, what is the maximum non-inflationary rate of growth for
the domestic economy? A number of well supported opinions are heard, but it
would seem that growth closer to 3.0% real Gross Domestic Product (GDP) than
2.0% is possible. As the largest participant in the global economy, the United
States has benefited greatly from excess global productive capacity, competitive
pricing, and a strong dollar that has increased domestic purchasing power.
Substantial rationalization of business structures, heavy investment in
productivity enhancing technology, and restrained wage demands in favor of job
security are contributing to a potential for greater economic growth without
touching off inflation.
<PAGE>
ECONOMIC AND INVESTMENT REVIEW
September 30, 1997
REAL GDP-SEASONALLY ADJUSTED ANNUAL RATE
Graph depicting Real GDP using quarter/quarter % change and year/year %
change.
[PLOT POINTS GRAPH]
Quarter/Quarter Year/Year Quarter/Quarter Year/Year
% Change % Change % Change % Change
1988 2.4 4 1994 3 3.1
4.1 4 4.7 3.8
2.4 3.7 1.8 3.7
5.1 3.5 3.6 3.3
1989 4 3.9 1995 0.9 2.7
3 3.6 0.3 1.6
2.2 3.6 3 2
0.4 2.4 2.2 1.6
1990 3.9 2.4 1996 1.8 1.8
1.2 1.9 6 3.2
-1.9 0.9 1 2.7
-4 -0.2 4.3 3.3
1991 -2.1 -1.7 1997E 4.9 4
1.8 -1.6 3.3 3.4
1 -0.8 3.3 3.9
1 0.4 3 3.6
1992 4.7 2.1 1998E 2.8 3.1
2.5 2.3 2.7 3
3 2.8 2.6 2.8
4.3 3.6 2.6 2.7
1993 0.1 2.5
2 2.3
2.1 2.1
5.3 2.4
The current expansion, now over six years old, has certainly not progressed
in a straight line, but it has possessed the capacity to correct imbalances with
a series of small inventory adjustments and interest rate fluctuations,
resulting from cautious shifts in monetary policy or changes in bond market
psychology. No condition is present that points to an end to the economic
expansion, although its sheer age suggests a slower pace of growth. Terminal
scenarios circulating today range from inflationary boom to deflationary bust,
but we expect a period of moderate growth, averaging slightly less than 3.0%
real GDP in coming quarters.
Although inflation should be contained below 3.0%, our concern rests with a
visible shortage of skilled workers that threatens to drive labor costs beyond
that which can be offset by efficiencies. Signs of employment cost pressure
could promote tighter monetary policy and an eventual slowing of economic
growth. Monetary restraint would be a strong negative for the securities
markets. Knowing that equity ownership has expanded greatly as a portion of
household net worth in the past decade, we are concerned that a correction of
today's fully priced stock market could adversely influence consumption,
corporate profits, and capital investment, in turn.
CONSUMER PRICES
Graph depicting Consumer Prices using quarter/quarter % change and year/year %
change.
[PLOT POINTS GRAPH]
Quarter/Quarter Year/Year Quarter/Quarter Year/Year
% Change % Change % Change % Change
1988 4.665308 3.946981 1993 2.918486 3.122765
4.963709 4.109589 1.862147 2.815235
4.555087 4.302628 3.260476 2.743902
4.618315 4.700487 2.023855 2.514552
1989 6.503806 5.157268 1994 2.383030 2.380952
3.273053 4.731243 3.754603 2.853198
4.015241 4.595792 2.529234 2.670623
7.061599 5.201204 2.785411 2.861685
1990 4.121541 4.607922 1995 3.127208 3.048092
7.084450 5.560011 2.120068 2.639821
6.961204 6.299629 2.463589 2.623388
3.021696 5.282332 3.333780 2.759991
1991 2.393909 4.842865 1996 3.394325 2.826468
3.081669 3.849076 2.668529 2.964255
3.357734 2.963147 3.343406 3.184575
2.736221 2.891745 2.372276 2.943704
1992 3.110340 3.071253 1997 3.552955 2.983166
3.086342 3.072421 3.012972 3.069433
3.547542 3.119710 3.242644 3.044300
2.939935 3.170790
The current bond market can best be described as trapped between the fear of
excess growth with the risk of higher inflation and a sense that the expansion
could progress at a pace that permits continued moderate inflation and possibly
lower bond yields. With a forecast of moderate economic growth and some wariness
regarding the continuation of very low price inflation, our bond portfolio
policy is essentially neutral. Signs of an acceleration in inflation would cause
us to shorten portfolio duration quickly.
THE BOND MARKET BALANCE
(Graphic: Scale weighted to the negatives)
NEGATIVES POSITIVES
RESILIENCE OF ECONOMY MODERATE ECONOMIC GROWTH
LABOR COST PRESSURE LOW REPORTED INFLATION
POSSIBLE REDUCED FOREIGN CAPITAL FLOWS STABLE TO RISING DOLLAR
FED TIGHTENING DIMINISHED FEDERAL DEFICIT
The strong, globally competitive position of the U.S. economy, the opening of
new business opportunities in emerging market-based economies, and the
beneficial balance of demand and capacity at low price levels suggest that the
secular advance in equities is not over. The potential for correction exists,
however. The valuation of the general market is at a very high level, apparently
incorporating assumptions about lower interest rates or profit growth that we
find exceedingly optimistic. Believing that
<PAGE>
ECONOMIC AND INVESTMENT REVIEW
September 30, 1997
interest rates are confined to a fairly narrow range and expecting far more
difficult profit comparisons in coming quarters, we have placed additional
emphasis on valuation in our disciplined approach to stock selection. In our
portfolio strategy we have balanced exposure to opportunity with a keen
appreciation of the volatility of the current market.
THE STOCK MARKET BALANCE
(Graphic: Scale weighted toward the negatives)
NEGATIVES POSITIVES
DIFFICULT PROFIT COMPARISONS AHEAD SUSTAINED ECONOMIC EXPANSION
MARKET FAIRLY VALUED LOW INFLATION
RISK OF HIGHER INTEREST RATES DEMOGRAPHICALLY BASED DEMAND
We are pleased to fulfill your unique investment needs through the distinct
investment disciplines represented by the First American Funds. Our twin focus
on competitive investment return and control of risk will help you achieve your
long term investment goals. We appreciate your confidence and look forward to
serving you in the coming year.
Sincerely,
/s/ John M. Murphy, Jr.
John M. Murphy, Jr.
Chief Investment Officer
First Asset Management
<PAGE>
PORTFOLIO PERFORMANCE DISCUSSION
September 30, 1997
[ILLUSTRATION]
NEW FUNDS
In August we introduced three new funds to the First American Funds family.
THE OREGON INTERMEDIATE TAX FREE and CALIFORNIA INTERMEDIATE TAX FREE FUNDS are
our newest additions to the First American line-up of intermediate tax free
funds. THE MICRO CAP VALUE FUND adds a new component to our value funds line-up.
Both the OREGON and CALIFORNIA INTERMEDIATE TAX FREE FUNDS have an objective
of providing current income that is free from federal and appropriate state
income taxes to the extent consistent with preservation of capital. Intermediate
municipal bonds provide an excellent source for generating tax-free income with
lower volatility than long-term municipal bonds.
The MICRO CAP VALUE FUND has an objective of capital appreciation. The Fund
will invest the majority of its assets in companies with market capitalizations
below $500 million. With the addition of this Fund, First American Funds now
offer value equity management across micro, small, mid and large capitalization
funds.
MONEY MARKET FUNDS
INVESTMENT OBJECTIVES: TO PROVIDE MAXIMUM CURRENT INCOME WHILE PRESERVING
CAPITAL AND MAINTAINING LIQUIDITY.
First American Funds offers three money market funds: Treasury Obligations,
Government Obligations and Prime Obligations. The aggregate net assets of these
Funds have grown from $6.3 billion one year ago to $9 billion.
The TREASURY OBLIGATIONS FUND invests in U.S. Treasury obligations and
repurchase agreements related to such securities. As of fiscal year-end, the
Fund has outperformed its average peer for 11 consecutive quarters.* Fund assets
grew from $1.9 billion to $3.7 billion during the year. For the fiscal year
ended September 30, 1997, the Institutional Class C shares seven day effective
yield was 5.32% and the average weighted maturity was 37 days. This Fund is
rated Triple-A by both Moody's and Standard & Poor's.
The GOVERNMENT OBLIGATIONS FUND invests in short-term debt obligations issued
or backed by the U.S. Government or its agencies and repurchase agreements
related to such securities. As of fiscal year-end, the Fund has performed in the
top quartile of its universe for 19 consecutive quarters.* Fund assets grew from
$1 billion to $1.3 billion during the year. For the fiscal year ended September
30, 1997, the Institutional Class C seven day effective yield was 5.34% and the
average weighted maturity was 42 days.
The PRIME OBLIGATIONS FUND invests in short-term debt obligations issued or
backed by the U.S. Government or its agencies, and corporate obligations
including high grade commercial paper, corporate debt, loan participation
interests and repurchase agreements. As of fiscal year-end, the Fund has
performed in the top quartile of its universe for 19 consecutive quarters.* Fund
assets grew from $3.4 billion to $3.9 billion during the year. For the fiscal
year ended September 30, 1997, the Institutional Class C seven day effective
yield was 5.48% and the average weighted maturity was 40 days.
* ON A GROSS YIELD BASIS AS REPORTED BY IBC
<PAGE>
PORTFOLIO PERFORMANCE DISCUSSION
September 30, 1997
[ILLUSTRATION]
TAX FREE INCOME FUNDS
The First American Tax Free Funds are designed to provide a balance of high
levels of tax-exempt income, relative price stability and long-term total return
potential. We attempt to accomplish these goals by maintaining intermediate-term
average maturities, which capture much of the yield of long-term bonds with less
volatility, and by investing in a diversified mix of investment grade
securities.
Our Tax Free Funds were somewhat defensively positioned during the past year
with average maturities short of our benchmark. This strategy reflected our view
that the U.S. economy would remain stronger in 1997 than was widely expected,
and that was the case. The surprise was the benign behavior of inflation in
spite of healthy employment levels that would normally be expected to translate
into rising wages and, eventually, into higher prices for goods and services. So
far that pattern has not developed, in part because of global competition and
the effects of a rising dollar, and in part because of high levels of domestic
productivity. The bond market has responded positively to this environment, and
interest rates could drift even lower if prices continue to be restrained. On
the other hand, market reaction would be very adverse if there were any signs of
resurgent inflation.
For the fiscal year ended September 30, 1997, the COLORADO INTERMEDIATE TAX
FREE FUND produced a total return of 7.11%, the MINNESOTA INSURED INTERMEDIATE
TAX FREE FUND a total return of 6.72% and the INTERMEDIATE TAX FREE FUND a total
return of 6.84%. The Lehman 7 Year G.O. Bond Index produced a return of 8.08%
during the same period. The First American Tax Free Funds have produced very
good risk-adjusted returns, and each Fund has an overall and three-year
four-star rating from Morningstar for the period ended September 30, 1997.
As is customarily the case, the credit quality of the Tax Free Funds remains
quite high. We avoid securities such as leveraged derivatives or other exotic
instruments that could adversely affect Fund returns.
VALUE OF A $10,000 INVESTMENT
[PLOT POINTS GRAPH]
First American Colorado First American Colorado
Intermediate Tax Free Intermediate Tax Free Lehman Brothers
Fund (Class A adjusted) Fund (Class C) 7-Year G.O. Index
4/94 9700 10000 10000
9/94 9814 10128 10104
9/95 10655 10986 11185
9/96 11123 11468 11684
9/97 11914 12283 12628
PAST PERFORMANCE OF THE FUND IS NOT INDICATIVE OF FUTURE PERFORMANCE.
Class A Class A Class C Lehman
Adjusted G.O.
1 year 7.11% 3.92% 7.11% 8.08%
3 years 6.68% 5.61% 6.64% 7.72%
Inception 6.81% 5.88% 6.81% N/A
The inception date of the Class A and Class C shares is 4/4/94.
The performance reflected in the graph begins on 4/30/94.
The performance reflected in the table begins on the inception date of Class A
shares.
<PAGE>
PORTFOLIO PERFORMANCE DISCUSSION
September 30, 1997
VALUE OF A $10,000 INVESTMENT
[PLOT POINTS GRAPH]
First American Minnesota
insured Intermediate First American Minnesota
Tax Free Fund insured Intermediate Lehman Brothers
(Class A adjusted) Tax Free Fund (Class C) 7-Year G.O. Index
2/94 9700 10000 10000
9/94 9557 9863 9919
9/95 10365 10685 10980
9/96 10863 11198 11470
9/97 11593 11917 12396
PAST PERFORMANCE OF THE FUND IS NOT INDICATIVE OF FUTURE PERFORMANCE.
Class Class A Class C Lehman
A Adjusted G.O.
1 year 6.72% 3.49% 6.42% 8.08%
3 years 6.65% 5.56% 6.51% 7.72%
Inception 5.02% 4.14% 4.94% N/A
The inception date of the Class A and Class C shares is 2/25/94
The performance reflected in the graph begins on 2/28/94.
The performance reflected in the table begins on the inception date of Class A
shares.
VALUE OF A $10,000 INVESTMENT
[PLOT POINTS GRAPH]
First American Intermediate
Tax Free Fund First American Intermediate Lehman Brothers
(Class A adjusted) Tax Free Fund (Class C) 7-Year G.O. Index
12/87 9700 10000 10000
9/88 10165 10479 10550
9/89 10660 10989 11253
9/90 11222 11569 12029
9/91 12246 12625 13463
9/92 13129 13535 14745
9/93 14266 14707 16377
9/94 14087 14523 16223
9/95 15376 15852 17959
9/96 16061 16541 18760
9/97 17159 17658 20276
PAST PERFORMANCE OF THE FUND IS NOT INDICATIVE OF FUTURE PERFORMANCE.
Class A Class A Class C Lehman
Adjusted G.O.
1 year 6.84% 3.63% 6.75% 8.08%
3 years 6.80% 5.71% 6.73% 7.72%
5 years 5.50% 4.85% 5.46%* 6.58%
Inception 6.09% 5.75% 6.07%* N/A
The inception date of the Class A shares is 12/22/87 and the inception date of
the Class C shares is 2/4/95.
The performance reflected in the graph begins on 12/31/87.
The performance reflected in the table begins on the inception date of Class A
shares.
*The performance presented links the performance of Class C shares which were
created on Feb. 4, 1994 with the performance of Class A shares which were the
only class of shares issued by the Fund from inception on Dec. 22, 1987. The
annualized since inception return of Class C shares from the date they were
created is 4.65%.
FIXED INCOME FUNDS
First American Fixed Income Funds are designed to produce a high quality
stream of income with varying degrees of price volatility to match investor
needs and risk preferences. The LIMITED TERM INCOME FUND holds securities with
maturities of three years or less, and restricts the average portfolio maturity
to two years or less. The Fund holds some government securities, but emphasizes
high quality asset-backed, mortgage-backed and corporate securities for extra
income. The INTERMEDIATE TERM INCOME FUND invests in the same mix of securities,
but its average maturity is limited to seven years or less. The INTERMEDIATE
GOVERNMENT BOND FUND also restricts its average maturity to seven years or less,
and in addition invests only in U.S. Treasury or government agency securities
exempt from state income taxes. THE FIRST AMERICAN FIXED INCOME FUND invests in
securities from one to 30 years, and is designed to replicate the bond market as
a whole. The Fund invests in a mix of government, investment grade corporate and
mortgage-backed securities.
Our Funds have been somewhat defensively positioned since early in the year,
and that had a dampening effect on returns during the second and third quarters
when interest rates declined and bond prices rose. This strategy reflected our
view that the U.S. economy would remain stronger in 1997 than was widely
expected, and that was the case. The surprise was the benign behavior of
inflation in spite of a healthy economy and tight labor market conditions. At
this stage of the business cycle sustained high employment levels would normally
be expected to translate into rising wages and, eventually into higher prices
for goods and services. So far that pattern has not developed, in part because
of global competition and the effects of a rising dollar, and in part because of
high levels of domestic productivity. The bond market has responded positively
to this environment, and interest rates could drift even lower if prices
continue to be restrained. On the other hand, market reaction would be very
adverse if there were any signs of resurgent inflation.
<PAGE>
PORTFOLIO PERFORMANCE DISCUSSION
September 30, 1997
[ILLUSTRATION]
Yield spreads continue to be very narrow, and there is not a great deal of
yield advantage to be gained from lower quality securities.
The LIMITED TERM INCOME FUND currently consists of a mix of Treasuries,
mortgage-and asset-backed securities, and investment grade corporate notes, with
the emphasis on non-government instruments. Although yields are narrower than
they have been for a number of years, some advantage to Treasuries remains in
good instruments. The Fund's strategy continues to be to capture that
incremental return, rather than make major bets on the direction of short-term
interest rates.
The FIXED INCOME and INTERMEDIATE TERM INCOME FUNDS have added several very
high quality, well-structured mortgage securities in the short-to-middle portion
of the yield curve in order to add some incremental yield to the portfolios
without taking excessive risk. Even if spreads widen in general, the spreads on
these issues should widen less than on lower quality or longer maturity issues.
The overall credit quality of all the First American Fixed Income Funds
remains quite high and, in keeping with our philosophy of constraining portfolio
risk, none of the Funds own any leveraged derivatives or other high risk
investments that could adversely affect the Funds' returns during less favorable
market conditions.
For the fiscal year ended September 30, 1997, the LIMITED TERM INCOME FUND
had a return of 6.09%, compared to a return of 6.21% for the Merrill Lynch 1
year Treasury Bill Index. The INTERMEDIATE TERM INCOME FUND had a return of
7.19%, compared with the Lehman Intermediate Government/ Corporate Bond Index
return of 8.20%. The INTERMEDIATE GOVERNMENT BOND FUND had a return of 7.06%,
compared with the Lehman Intermediate Government Bond Index return of 7.83%. The
FIXED INCOME FUND had a return of 8.26%, compared with the Lehman Government/
Corporate Bond Index return of 9.59%.
VALUE OF A $10,000 INVESTMENT
[PLOT POINTS GRAPH]
First American
Limited Term First American
Income Fund Limited Term Merrill Lynch
(Class A adjusted) Income Fund (Class C) 1-Year Treasury Index
12/92 9800 10000 10000
9/93 10137 10344 10293
9/94 10361 10573 10552
9/95 11042 11267 11265
9/96 11697 11935 11906
9/97 12409 12662 12646
PAST PERFORMANCE OF THE FUND IS NOT INDICATIVE OF FUTURE PERFORMANCE.
Class A Class A Class C Merrill
Adjusted Lynch
1 year 6.09% 3.99% 6.09% 6.21%
3 years 6.20% 5.49% 6.20% 6.22%
Inception 5.08% 4.65% 5.08%* N/A
The inception date of the Class A shares is 12/14/92 and the inception date of
the Class C shares is 2/4/94.
The performance reflected in the graph begins on 12/31/92.
The performance reflected in the table begins on the inception date of Class A
shares.
*The performance presented links the performance of Class C shares which were
created on Feb. 4, 1994 with the performance of Class A shares which were the
only class of shares issued by the Fund from inception on Dec. 14, 1992. The
annualized since inception return of Class C shares from the date they were
created is 5.42%.
<PAGE>
PORTFOLIO PERFORMANCE DISCUSSION
September 30, 1997
VALUE OF A $10,000 INVESTMENT
[PLOT POINTS GRAPH]
First American
Intermediate Term First American Lehman Intermediate
Income Fund Intermediate Term Term Government/Corporate
(Class A adjusted) Income Fund (Class C) Bond Index
[Graph 2 - No Data]
PAST PERFORMANCE OF THE FUND IS NOT INDICATIVE OF FUTURE PERFORMANCE.
Lehman
Class A Class A Class C Intermediate
Adjusted Gov./Corp.
1 year 7.19% 3.14% 6.98% 8.20%
3 years 7.76% 6.40% 7.69% 8.17%
Inception 6.09% 5.24% 6.04%* N/A
The inception date of the Class A shares is 12/14/92 and the inception date of
the Class C shares is 2/4/94.
The performance reflected in the graph begins on 12/31/92.
The performance reflected in the table begins on the inception date of Class A
shares.
*The performance presented links the performance of Class C shares which were
created on Feb. 4, 1994 with the performance of Class A shares which were the
only class of shares issued by the Fund from inception on Dec. 14, 1992. The
annualized since inception return of Class C shares from the date they were
created is 5.84%.
VALUE OF A $10,000 INVESTMENT
[PLOT POINTS GRAPH]
First American
Intermediate Government First American Lehman Intermediate
Bond Fund Intermediate Government Term Government
(Class A adjusted) Bond Fund (Class C) Bond Index
12/87 9700 10000 10000
9/88 10114 10426 10575
9/89 10903 11241 11594
9/90 11780 12144 12588
9/91 12990 13392 14298
9/92 14141 14578 16078
9/93 14846 15306 17308
9/94 14679 15116 17048
9/95 16120 16600 18859
9/96 16902 17387 19821
9/97 18095 18616 21373
PAST PERFORMANCE OF THE FUND IS NOT INDICATIVE OF FUTURE PERFORMANCE.
Lehman
Class A Class A Class C Intermediate
Adjusted Gov.
1 year 7.06% 3.89% 7.07% 7.83%
3 years 7.22% 6.13% 7.19% 7.83%
5 years 5.06% 4.43% 5.04%* 5.86%
Inception 6.67% 6.33% 6.65%* N/A
The inception date of the Class A shares is 12/22/87 and the inception date of
the Class C shares is 2/4/94.
The performance reflected in the graph begins on 12/31/87.
The performance reflected in the table begins on the inception date of Class A
shares.
*The performance presented links the performance of Class C shares which were
created on Feb. 4, 1994 with the performance of Class A shares which were the
only class of shares issued by the Fund from inception on Dec. 22, 1987. The
annualized since inception return of Class C shares from the date they were
created is 5.38%.
VALUE OF A $10,000 INVESTMENT
[PLOT POINTS GRAPH]
First American Fixed First American Lehman
Income Fund Fixed Income Fund Government/Corporate
(Class A adjusted) (Class C) Bond Index
12/87 9625 10000 10000
9/88 10085 10478 10656
9/89 11162 11597 11861
9/90 11921 12386 12662
9/91 13548 14076 14672
9/92 15215 15808 16613
9/93 16615 17262 18516
9/94 16131 16760 17750
9/95 18193 18915 20297
9/96 19037 19842 21212
9/97 20609 21536 23247
PAST PERFORMANCE OF THE FUND IS NOT INDICATIVE OF FUTURE PERFORMANCE.
Class A Class A Class B Class B Class C Lehman
Adjusted Adjusted Gov./Corp.
1 year 8.26% 4.19% 7.40% 2.40% 8.54% 9.59%
3 years 8.51% 7.15% 7.65% 6.48% 8.72% 9.41%
5 years 6.26% 5.45% N/A N/A 6.38%* 6.95%
Inception 8.18% 7.76% 7.02% 6.19% 8.25%* N/A
The inception date of the Class A shares is 12/22/87 and the inception date of
the Class C shares is 2/4/94.
The performance reflected in the graph begins on 12/31/87.
The performance reflected in the table begins on the inception date of Class A
shares.
*The performance presented links the performance of Class C shares which were
created on Feb. 4, 1994 with the performance of Class A shares which were the
only class of shares issued by the Fund from inception on Dec. 22, 1987. The
annualized since inception return of Class C shares from the date they were
created is 6.15%.
DIVERSIFIED FUNDS
ASSET ALLOCATION FUND
INVESTMENT OBJECTIVE: TO PROVIDE MAXIMUM TOTAL RETURN OVER THE LONG TERM.
For the fiscal year ended September 30, 1997, the Fund produced a total
return of 19.39%, compared with the S&P 500 Composite Index return of 40.43% and
the Lehman Government/Corporate Index return of 9.59%.
These results are consistent with the Fund's objective of providing a
long-term total return higher than the bond market, and with lower volatility
than the equity market. We use a proprietary quantitative model to allocate the
investments in this Fund among three asset classes: common stocks included in
the S&P 500 Composite Index, direct obligations of the U.S. Treasury and
short-term cash instruments.
Based on the performance history of these asset classes,
<PAGE>
PORTFOLIO PERFORMANCE DISCUSSION
September 30, 1997
the model forecasts future performance trends. We then vary investments in the
Fund to be more heavily weighted in the asset classes showing the most favorable
return outlook.
We began the year with the greatest allocation in equities. The Fund held 48%
equities, 23% bonds and 29% cash. Throughout the fiscal year, the equity
allocation in the Fund varied from 31% to 50%. The bond allocation ranged from
17% to 31%. The cash allocation fluctuated from 29% to 51%. At year-end, the
Fund held 35% equities, 21% bonds and 44% cash.
In September, we notified Asset Allocation Fund shareholders that, pending
shareholder approval at the Oct. 31, 1997 shareholder meeting, this Fund will be
merged with the First American Balanced Fund. We are doing this for several
reasons. The investment objective for both Funds is similar, and by merging
these two Funds we will create efficiencies in fund management and economies of
scale for the combined funds. Additionally, the investment returns for the
Balanced Fund have exceeded the returns of the Asset Allocation Fund since
inception in 1992.
VALUE OF A $10,000 INVESTMENT
[PLOT POINTS GRAPH]
Lehman
First American First American Government/
Asset Allocation Asset Allocation Standard & Poor's Corporate
Fund (Class A adjusted) Fund (Class C) 500 Composite Index Bond Index
12/92 9550 10000 10000 10000
9/93 10266 10750 10755 11138
9/94 10452 10940 11152 10677
9/95 12491 13101 14464 12209
9/96 14001 14722 17403 12760
9/97 16716 17620 24439 13983
PAST PERFORMANCE OF THE FUND IS NOT INDICATIVE OF FUTURE PERFORMANCE.
Class A Class A Class B Class B Class C Lehman S&P
Adjusted Adjusted Gov./Corp. 500
1 year 19.39% 14.04% 18.55% 13.55% 19.69% 9.59% 40.43%
3 years 16.94% 15.16% 16.07% 15.07% 17.22% 9.41% 29.89%
Inception 12.50% 11.42% 15.44% 14.73% 12.66%* N/A N/A
The inception date of the Class A shares is 12/14/92, the inception date of the
Class B shares is 8/15/94, and the inception date of the Class C shares is
2/4/94.
The performance reflected in the graph begins on 12/31/92.
The performance reflected in the table begins on the inception date of Class A
shares.
*The performance presented links the performance of Class C shares which were
created on Feb. 4, 1994 with the performance of Class A shares which were the
only class of shares issued by the Fund from inception on Dec. 14, 1992. The
annualized since inception return of Class C shares from the date they were
created is 13.66%.
BALANCED FUND
INVESTMENT OBJECTIVE: TO PROVIDE MAXIMUM TOTAL RETURN.
For the fiscal year ended September 30, 1997, the Balanced Fund produced a
total return of 25.80% as compared to a Balanced Composite Index of 28.09% and
24.03% for the Lipper Balanced Fund Average. On a three-year basis, the Balanced
Fund has produced a total return of 20.59% as compared to the Balanced Composite
Index of 21.69% and the return of 18.53% for the Lipper Balanced Funds Average.
The Balanced Fund has maintained an excellent risk/return profile and, as of
September 30, 1997, had an overall and three-year four-star Morningstar rating
and a 5 (out of 5) category rating. Category ratings are based upon comparisons
to similar funds. The Fund has a balanced mix of equity and fixed income
securities with a long-term target of 60% equity securities and 40% fixed income
securities. We believe this mix will allow the Fund to provide the necessary
diversification in face of the sometimes turbulent financial markets. With the
stock market at record highs, we believe that more than ever before it is
important to maintain an investment portfolio that is diversified between stocks
and bonds. This strategy has proved to be successful because the Fund is in the
upper 30% of balanced funds for the three-year period ended September 30, 1997,
as reported by Lipper Analytical Services.
The equity portion of the Balanced Fund is managed identically to the First
American Stock Fund. The bond portion of the Balanced Fund is managed
identically to the First American Fixed Income Fund. Please refer to the
commentary on these Funds for complete discussion of the strategies employed.
<PAGE>
PORTFOLIO PERFORMANCE DISCUSSION
September 30, 1997
VALUE OF A $10,000 INVESTMENT
[PLOT POINTS GRAPH]
Standard &
First American First American Balanced Poor's Lehman
Balanced Fund Balanced Fund Composite 500 Composite Government/
(Class A adjusted) (Class C) Index** Index Corporate Index
12/92 9550 10000 10000 10000 10000
9/93 10484 10978 10911 10755 11138
9/94 10802 11316 10971 11152 10677
9/95 13024 13680 13556 14464 12209
9/96 15057 15854 15454 17403 12760
9/97 18941 20003 19795 24439 13983
PAST PERFORMANCE OF THE FUND IS NOT INDICATIVE OF FUTURE PERFORMANCE.
Class A Class A Class B Class B Class C Balanced
Adjusted Adjusted Composite
1 year 25.80% 20.13% 24.93% 19.93% 26.17% 28.09%
3 years 20.59% 18.74% 19.69% 18.75% 20.91% 21.70%
Inception 15.49% 14.39% 18.62% 17.95% 15.70%* N/A
The inception date of the Class A shares is 12/14/92, the inception date of the
Class B shares is 8/15/94, and the inception date of the Class C shares is
2/4/94.
The performance reflected in the graph begins on 12/31/92.
The performance reflected in the table begins on the inception date of Class A
shares.
* The performance presented links the performance of Class C shares which were
created on Feb. 4, 1994 with the performance of Class A shares which were the
only class of shares issued by the Fund from inception on Dec. 14, 1992. The
annualized since inception return of Class C shares from the date they were
created is 16.67%.
**Benchmark is comprised of two unmanaged benchmarks, weighted 60% Standard &
Poor's 500 Composite Index and 40% Lehman Government/Corporate Bond Index.
Previously the Fund used both the Standard & Poor's 500 Corporate Index and
the Lehman Government/Corporate Bond Index. Going forward, the Fund will also
use a blended index as a comparison because it is better suited to the Fund's
objective.
GROWTH AND INCOME FUNDS
REAL ESTATE SECURITIES FUND
INVESTMENT OBJECTIVE: TO PROVIDE ABOVE AVERAGE CURRENT INCOME AND LONG-TERM
CAPITAL APPRECIATION.
For the fiscal year ended September 30, 1997, the Fund produced a total
return of 36.77%, compared with 40.88%for the Morgan Stanley REIT Index.
This Fund invests in income-producing equity securities of companies mainly
engaged in the real estate industry. We invest the majority of the Fund's total
assets in equity Real Estate Investment Trusts (REITs). During the year, market
conditions improved significantly for most segments of the U.S. commercial real
estate sector, and we believe the fundamentals remain positive. The trend toward
securitization of U.S. commercial real estate continues, with the total market
capitalization of equity REITs approximately doubling from a year ago to over
$115 billion. Consolidation of the sector appears to be accelerating with
several mergers between publicly traded real estate companies completed or
announced during the year.
In many areas of the country, the real estate supply and demand environment
has tightened so that new development is increasingly attractive. Development
activity, however, continues to be disciplined by better market information
availability, increased scrutiny from the public equity market and the Wall
Street investment community and continued, relatively strict lending criteria
among the traditional sources of capital.
The apartment sector has been the furthest along in its recovery, while the
office sector's recovery has accelerated significantly over the past 12 months,
with declining vacancy rates and increasing rents. The Southern California
market, particularly the Los Angeles metro area and the New York City greater
metropolitan area, appear to be the laggards in the recovery but are also
improving.
The Fund benefited during the year from its overweighted position in the
full-service hotel sector because room occupancy rates and daily rental rates
continued to improve. Starwood Lodging and Patriot American, two of the Fund's
larger holdings, provided particularly strong gains. Office and Industrial
companies Cali Realty, Bedford Properties and Crescent Real Estate were also
standout performers. Equity Residential, one of the Fund's apartment holdings,
was among the strongest performers. The company's management has continued its
aggressive acquisition strategy. It has completed one major acquisition of
another public company, Wellsford Residential, and it has announced a proposed
merger with Evans Withycombe, which is another of the Fund's holdings.
The Fund remains well diversified, with significant holdings in the retail,
healthcare and self-storage sectors, in order to capture the better than average
current yields provided. However, total returns produced in these sectors
generally lagged the other real estate sectors for the period.
<PAGE>
PORTFOLIO PERFORMANCE DISCUSSION
September 30, 1997
[ILLUSTRATION]
Excel Realty and JDN Realty, two of the Fund's retail holdings, were exceptional
performers relative to the rest of the sector.
The Fund strategy also continues to emphasize the geographic areas and
segments of the market with strong long-term fundamentals and companies with
superior management, business plans and execution.
VALUE OF A $10,000 INVESTMENT
[PLOT POINTS GRAPH]
First American
Real Estate First American
Securities Fund Real Estate
(Class A adjusted) Securities Fund (Class C) Morgan Stanley REIT Index
6/95 9550 10000 10000
9/95 10046 10519 10411
9/96 11871 12469 12313
9/97 16236 17091 17347
PAST PERFORMANCE OF THE FUND IS NOT INDICATIVE OF FUTURE PERFORMANCE.
Class A Class A Class B Class B Class C MS
Adjusted Adjusted REIT
1 year 36.77% 30.65% 35.77% 30.77% 37.07% 40.88%
Inception 27.09% 24.19% 26.00% 24.00% 26.87% N/A
The inception date of the Class A shares is 9/29/95, the inception date of
Class B shares is 9/29/95 and the inception date of the Class C shares is
6/30/95.
The performance reflected in the graph begins on 6/30/95.
The performance reflected in the table begins on the inception date of Class A
shares.
EQUITY INCOME FUND
INVESTMENT OBJECTIVE: TO PROVIDE LONG-TERM GROWTH OF CAPITAL AND INCOME.
For the fiscal year ended September 30, 1997, the Fund produced a total
return of 31.16%, compared with 31.18% for the Equity Income Composite Index.
Historically, yield-oriented stocks underperform the broad market during strong
markets and outperform the broad market during weak markets. The conservative
investment strategy we have employed for this Fund has resulted in excellent
risk-adjusted returns for Fund shareholders. As of September 30, 1997, the Fund
had an overall and three-year four-star rating from Morningstar and a category
rating of 5 (out of 5). Category ratings are based upon comparisons to similar
funds.
The continued strength of the U.S. economy and corporate profits have
resulted in several of the Fund's holdings performing well. The solid
performance of Ford Motor reflected its strong product line and
better-than-expected profits. Other economically sensitive holdings that
performed well included DuPont, General Electric and Great Northern Iron Ore.
The generally favorable interest rate environment continued to provide a
supportive backdrop for the interest-rate sensitive financial sector. Several of
the Fund's financial holdings were strong performers during the year. Bank of
New York, IPC Holdings and American Express were among the best performers in
the Fund. American Express has made measurable progress in re-energizing some of
its core divisions--including its credit card business, which is experiencing a
turnaround in market share.
<PAGE>
PORTFOLIO PERFORMANCE DISCUSSION
September 30, 1997
The Real Estate Investment Trust sector continues to offer some of the
highest current yields available in the equity market. The economic fundamentals
of United States commercial real estate markets continue to improve with
generally rising occupancy rates and rents. The Fund continues to maintain
significant holdings in the sector. Crescent Real Estate, a diversified real
estate company, was one of the Fund's top performers for the period.
VALUE OF A $10,000 INVESTMENT
[PLOT POINTS GRAPH]
<TABLE>
<CAPTION>
First American
Equity Income First American Equity Income Standard & Poor's Lehman
Fund (Class A Equity Income Composite 500 Composite Government/
adjusted) Fund (Class C) Index** Index Corporate Index
<S> <C> <C> <C> <C> <C>
4/94 9550 10000 10000 10000 10000
9/94 9889 10355 10319 10532 9926
9/95 11675 12244 12830 13660 11350
9/96 13590 14300 14727 16436 11862
9/97 17825 18797 19091 23081 13000
</TABLE>
PAST PERFORMANCE OF THE FUND IS NOT INDICATIVE OF FUTURE PERFORMANCE.
Class A Class A Class B Class B Class C Composite
Adjusted Adjusted Index
1 year 31.16% 25.22% 30.06% 25.06% 31.45% 31.18%
3 years 21.70% 19.83% 20.77% 19.85% 21.99% 23.79%
Inception 19.17% 17.63% 20.07% 19.42% 19.41%* N/A
The inception date of the Class A shares is 3/25/94, the inception date of the
Class B shares is 8/15/94 and the inception date of the Class C shares is
8/2/94.
The performance reflected in the graph begins on 3/31/94.
The performance reflected in the table begins on the inception date of Class A
shares.
* The performance presented links the performance of Class C shares which were
created on Aug. 2, 1994 with the performance of Class A shares which were the
only class of shares issued by the Fund from inception on Mar. 25, 1994. The
annualized since inception return of Class C shares from the date they were
created is 20.92%.
Performance is presented for the period beginning 3/31/94, the date U.S. Bank
National Association, formerly First Bank National Association, became the
Adviser of the Equity Income Fund. The inception date of the Fund was
12/18/92. The per share income and capital changes for this Fund since
12/18/92 can be found in the financial highlights and the prospectus. The
average annual total return figures for one, five and ten year periods (or
from inception) are available upon request.
** Benchmark is comprised of two unmanaged benchmarks, weighted 70% Standard &
Poor's 500 Composite Index and 30% Lehman Government/Corporate Bond Index.
Previously the Fund used both the Standard and Poor's 500 Composite Index and
the Lehman Government/Corporate Bond Index. Going forward, the Fund will also
use a blended index as a comparison because it is better suited to the Fund's
objective.
EQUITY INDEX FUND
INVESTMENT OBJECTIVE: INVESTMENT RESULTS THAT CORRESPOND TO THE STANDARD &
POOR'S 500 COMPOSITE STOCK INDEX.
VALUE OF A $10,000 INVESTMENT
[PLOT POINTS GRAPH]
First American Equity First American Equity
Index Fund Index Fund Standard & Poor's
(Class A adjusted) (Class C) 500 Composite Index
12/92 9550 10000 10000
9/93 10267 10751 10755
9/94 10601 11100 11152
9/95 13644 14338 14464
9/96 16363 17203 17403
9/97 22821 24058 24439
PAST PERFORMANCE OF THE FUND IS NOT INDICATIVE OF FUTURE PERFORMANCE.
Class A Class A Class B Class B Class C S&P
Adjusted Adjusted 500
1 year 39.47% 33.19% 38.45% 33.45% 39.85% 40.43%
3 years 29.12% 27.17% 28.17% 27.36% 29.41% 29.89%
Inception 20.04% 18.90% 27.10% 26.52% 20.22%* N/A
The inception date of the Class A shares is 12/14/92, the inception date of the
Class B shares is 8/15/94, and the inception date of the Class C shares is
2/4/94.
The performance reflected in the graph begins on 12/31/92.
The performance reflected in the table begins on the inception date of Class A
shares.
*The performance presented links the performance of Class C shares which were
created on Feb. 4, 1994 with the performance of Class A shares which were the
only class of shares issued by the Fund from inception on Dec. 14, 1992. The
annualized since inception return of Class C shares from the date they were
created is 23.65%.
<PAGE>
PORTFOLIO PERFORMANCE DISCUSSION
September 30, 1997
STOCK FUND
INVESTMENT OBJECTIVE: TO PROVIDE LONG-TERM GROWTH OF CAPITAL WITH A SECONDARY
GOAL OF CURRENT INCOME.
For the fiscal year ended September 30, 1997, the Fund produced a total
return of 38.82%, compared with the S&P 500 Composite Index return of 40.43%.
The Fund's five-year annualized return is 22.01%, compared with the S&P 500
Composite Index return of 20.75%.
The Stock Fund is a value oriented Fund that seeks to achieve a favorable
balance between appreciation potential and risk. The Fund invests in large
capitalization stocks with market values in excess of $500 million that are
fundamentally sound and at attractive valuations.
We seek to limit risk by holding 50 to 60 securities. Risk is further reduced
by a disciplined investment process that identifies companies with sound
fundamentals and attractive valuations that also possess a catalyst for change,
such as restructuring or new management. Individual security positions are
generally built slowly over time and carefully managed in order to avoid
excessive concentrations in any individual sector or industry. We employ a
management team composed of seven professionals averaging 21 years of
experience. The team provides a peer review process that ensures the consistent
application of purchase and sale disciplines. The disciplined value based
investment approach has resulted in excellent risk adjusted returns. As of
September 30, 1997, the Fund had an overall and three-year five-star rating from
Morningstar and a 5 (out of 5) category rating. Category ratings are based upon
comparisons to similar funds. On a five year basis the Fund's returns are in the
top 5% of Growth and Income Fund returns, as measured by Lipper Analytical
Services.
In general, individual security selection has been key to the Fund's
long-term performance. For example, the Fund has owned W. R. Grace for almost
two years, anticipating the benefits of corporate restructuring. The company
recently announced a significant merger, and the stock rose sharply. Another
Fund holding, Elf Acquitaine, a large international oil company, is in the midst
of major restructuring. The restructuring should lower costs and enhance
long-term hydrocarbon production. The stock also represents an excellent
opportunity to benefit from favorable energy market conditions.
During the past year, the Fund also benefited from favorable economic
conditions and the "unlocking" of shareholder value--the result of corporate
restructuring, a catalyst associated with nearly one-half of the individual
securities owned in the Fund.
VALUE OF A $10,000 INVESTMENT
[PLOT POINTS GRAPH]
First American
Stock Fund First American Standard & Poor's
(Class A adjusted) Stock Fund (Class C) 500 Composite Index
12/87 9550 10000 10000
9/88 10021 10494 11309
9/89 12508 13097 15034
9/90 11576 12121 13647
9/91 14545 15231 17891
9/92 15688 16428 19875
9/93 18170 19027 22447
9/94 19689 20617 23275
9/95 24663 25875 30187
9/96 30557 32167 36321
9/97 42420 44754 51006
PAST PERFORMANCE OF THE FUND IS NOT INDICATIVE OF FUTURE PERFORMANCE.
Class A Class A Class B Class B Class C S&P
Adjusted Adjusted 500
1 year 38.82% 32.60% 37.71% 32.71% 39.13% 40.43%
3 years 29.15% 27.18% 28.16% 27.34% 29.48% 29.89%
5 years 22.01% 20.89% N/A N/A 22.20% 20.75%
Inception 16.57% 16.02% 26.71% 26.13% 16.66%* N/A
The inception date of the Class A shares is 12/22/87, the inception date of the
Class B shares is 8/15/94, and the inception date of the Class C shares is
2/4/94.
The performance reflected in the graph begins on 12/31/87.
The performance reflected in the table begins on the inception date of Class A
shares.
*The performance presented links the performance of Class C shares which were
created on Feb. 4, 1994 with the performance of Class A shares which were the
only class of shares issued by the Fund from inception on Dec. 22, 1987. The
annualized since inception return of Class C shares from the date they were
created is 24.21%.
DIVERSIFIED GROWTH FUND
INVESTMENT OBJECTIVE: TO PROVIDE LONG-TERM GROWTH OF CAPITAL WITH A SECONDARY
GOAL OF CURRENT INCOME.
For the fiscal year ended September 30, 1997, the Fund's total return was
32.69%, compared to 40.43% for the S&P 500. In an absolute sense, the
performance has been very
<PAGE>
PORTFOLIO PERFORMANCE DISCUSSION
September 30, 1997
strong--at levels too high to sustain over the long term--but results have not
met our target relative to the market indices. That being said, the Fund
maintains an attractive risk/return profile and had an overall and three-year
four-star rating from Morningstar as of September 30, 1997.
Following its strategy, the Fund maintains broad diversification among the
major market sectors. Issues are generally quite fully valued, which is not
surprising considering the length of time the overall market has been rising
without a significant correction. However, we continue to see attractive
investment opportunities. The Fund is modestly overweighted in technology,
health care and financial issues. We remain underweighted in the economically
cyclical sectors, such as industrial commodities and durable goods.
Individual issues that aided performance in the past year included Nokia,
Signet Banking, Microsoft, Schlumberger and Medtronic. Nokia is one of the two
largest producers of wireless phone handsets. Developed economies have seen
continued demand for wireless phones. Nokia's sales rose more than 40% in recent
quarters, resulting in earnings doubling.
First Union acquired Signet Banking, a leading regional bank in the
Southeast, because of its strong market franchise. The stock made much of its
move when First Union agreed to acquire the company. The Fund expects to retain
its position in First Union because of its strong prospects as the sixth largest
bank in the country.
Microsoft continues to be the largest and most profitable company in the
desktop computing marketplace, driven largely by the strength of its operating
system software. Net profit margins have risen to about one-third of sales.
Sales have slowed in recent quarters, however, as the company is between major
product cycles such as Window 95 and Windows NT, both of which had a major
impact in the past two years.
Schlumberger is a leader in oil field services, an industry that has
experienced a resurgence in profitability following many years of low
profitability. Natural gas supplies in the United States have finally shrunk to
relatively modest levels, and energy companies are stepping up their exploration
and development spending to develop new supplies.
One of our biggest disappointments has been the performance of Columbia/HCA
Healthcare. The company operates the largest chain of privately owned hospitals
in the country, but has been a poor performer since the government announced
that it was investigating the company for fraud. The company has replaced its
top management, but the stock price has fallen to less than what it was a year
ago. The current valuation is very low, but considerable uncertainty remains.
Going forward, the stock appears undervalued relative to even our very reduced
expectations.
VALUE OF A $10,000 INVESTMENT
[PLOT POINTS GRAPH]
First American First American
Diversified Growth Fund Diversified Growth Fund Standard & Poor's
(Class A adjusted) (Class C) 500 Composite Index
4/94 9550 10000 10000
9/94 9814 10288 10532
9/95 12877 13536 13660
9/96 15115 15916 16436
9/97 20057 21128 23081
PAST PERFORMANCE OF THE FUND IS NOT INDICATIVE OF FUTURE PERFORMANCE.
Class A Class A Class B Class B Class C S&P
Adjusted Adjusted 500
1 year 32.69% 26.74% 31.42% 26.42% 32.75% 40.43%
3 years 26.90% 24.96% 25.85% 25.00% 27.11% 29.89%
Inception 22.67% 21.07% 25.78% 25.19% 22.88%* N/A
The inception date of the Class A shares is 3/25/94, the inception date of the
Class B shares is 8/15/94, and the inception date of the Class C shares is
8/2/94.
The performance reflected in the graph begins on 3/31/94.
The performance reflected in the table begins on the inception date of Class A
shares.
*The performance presented links the performance of Class C shares which were
created on Aug. 2, 1994 with the performance of Class A shares which were the
only class of shares issued by the Fund from inception on Mar. 25, 1994. The
annualized since inception return of Class C shares from the date they were
created is 26.49%.
Performance is presented for the period beginning 3/25/94, the date U.S. Bank
National Association, formerly First Bank National Association, became the
Adviser of the Diversified Growth Fund. The inception date of the Fund was
12/18/92. The per share income and capital changes for this Fund since 12/18/92
can be found in the financial highlights and the prospectus. The average annual
total return figures for one, five and ten year periods (or from inception) are
available upon request.
<PAGE>
PORTFOLIO PERFORMANCE DISCUSSION
September 30, 1997
GROWTH FUNDS
SPECIAL EQUITY FUND
INVESTMENT OBJECTIVE: TO PROVIDE CAPITAL APPRECIATION
For the fiscal year ended September 30, 1997, the Fund produced a total
return of 39.93%, compared with the Standard & Poor's 400 Mid-Cap Index of
39.09%.
The Special Equity Fund is a value oriented Fund that invests primarily in
companies with market capitalizations of $1 billion to $5 billion. These are
referred to as "mid-capitalization" stocks. The stocks are generally more
volatile than large capitalization stocks but less volatile than small
capitalization stocks with capitalizations of less than $1 billion.
We invest in fundamentally sound companies with temporary, not terminal,
problems at attractive valuations. The Fund seeks to limit portfolio risk by
holding 50 to 60 securities. Individual security positions are generally built,
and subsequently reduced, slowly over time. In addition, risk is reduced by not
excessively concentrating investments in sectors of the market.
Individual security selection was the main driver to performance over the
last year. A couple of examples of the implementation of our investment approach
are Canandaigua Wine and Brinker International.
Canandaigua Wine, a leading producer of moderately priced wine, experienced
an earnings shortfall due to a poor grape crop. The fundamental business
remained strong, but the market dropped the stock price to a very attractive
valuation. The stock was purchased in the low $20s and is now near $50 because
the current new grape crop was normal.
Brinker International, operator of the Chili's restaurant chain, a leader in
casual dining, experienced a slowdown in earnings due to wage pressures and
tough weather. Their leadership position remained strong, yet the market dropped
the stock price to attraction valuations. The stock was purchased in the $12
range. It is currently over $17, and as the weather improved, the company has
also adjusted to the current cost structure.
As of September 30, 1997, the Fund had an overall four-star rating from
Morningstar. The Fund's one-year performance is in the top 15% of its peer
group, as measured by Lipper Analytical Services.
VALUE OF A $10,000 INVESTMENT
[PLOT POINTS GRAPH]
First American First American
Special Equity Fund Special Equity Standard & Poor's Standard & Poor's
(Class A adjusted) Fund (Class C) 500 Composite Index 400 Mid-Cap Index
12/87 9550 10000 10000 10000
9/88 11223 11752 11309 11772
9/89 13275 13901 15034 16159
9/90 11942 12505 13647 13828
9/91 14829 15527 17891 20784
9/92 17071 17875 19875 23378
9/93 20299 21255 22447 28986
9/94 24101 25237 23275 29442
9/95 27145 28477 30187 37032
9/96 33993 35770 36321 42216
9/97 47567 50167 51006 58718
PAST PERFORMANCE OF THE FUND IS NOT INDICATIVE OF FUTURE PERFORMANCE.
Class A Class A Class B Class B Class C S&P S&P
Adjusted Adjusted 500 400
1 year 39.93% 33.64% 38.81% 33.81% 40.25% 40.43% 39.09%
3 years 25.44% 23.52% 24.44% 23.57% 25.74% 29.89% 25.87%
5 years 22.75% 21.63% N/A N/A 22.94% 20.75% 20.23%
Inception 17.94% 17.39% 25.37% 24.78% 18.03%* N/A N/A
The inception date of the Class A shares is 12/22/87, the inception date of the
Class B shares is 8/15/94, and the inception date of the Class C shares is
2/4/94.
The performance reflected in the graph begins on 12/31/87.
The performance reflected in the table begins on the inception date of Class A
shares.
*The performance presented links the performance of Class C shares which were
created on Feb. 4, 1994 with the performance of Class A shares which were the
only class of shares issued by the Fund from inception on Dec. 22, 1987. The
annualized since inception return of Class C shares from the date they were
created is 23.05%.
Previously, the Fund used the S&P 500 Index as a benchmark. Going forward, the
Fund will use the S&P 400 Mid-Cap Index as a comparison because it is better
suited to the Fund's objective.
<PAGE>
PORTFOLIO PERFORMANCE DISCUSSION
September 30, 1997
REGIONAL EQUITY FUND
INVESTMENT OBJECTIVE: TO PROVIDE CAPITAL APPRECIATION.
For the fiscal year ended September 30, 1997, the Fund produced a total
return of 36.13%, compared to the Frank Russell 2000 Index return of 33.19%. For
the three-year period ended September 30, 1997, the Fund produced an average
annual return of 28.72%, compared to the return of the Frank Russell 2000 Index
of 22.96%.
The Fund invests mainly in the securities of small capitalization companies
in the upper Midwest. Investment decisions are made using a bottom-up approach,
focusing on stocks that are fundamentally sound, attractively valued and/or
inefficiently priced as a result of low recognition and awareness by the
investment community. Our proximity to these companies offers obvious benefits
in uncovering, analyzing and monitoring unrecognized opportunities.
Strong performers for the year included: Transcript, a Nebraska-based
wireless communications technology company; Ballantyne of Omaha, which is
involved in the design, manufacture and distribution of motion picture
equipment; Community First Bancshares, located in North Dakota; and Merrill
Corp., a Minnesota-based printing and marketing communications company. The
stocks of these companies more than doubled during the past year.
Over the past several years, performance of small capitalization stocks
lagged the performance of large capitalization issues. The last quarter of the
fiscal year, however, has provided results that indicate there may be a change
in that trend. Looking forward, we hope the market for small capitalization
stocks will remain strong for the coming year and that the apparent rotation
from large capitalization stocks to small capitalization stocks will continue.
VALUE OF A $10,000 INVESTMENT
[PLOT POINTS GRAPH]
First American First American
Regional Equity Fund Regional Equity Fund Frank Russell
(Class A adjusted) (Class C) 2000 Stock Index
12/92 9550 10000 10000
9/93 11142 11667 11585
9/94 11896 12457 11894
9/95 16793 17614 14673
9/96 18636 19599 16602
9/97 25369 26750 22112
PAST PERFORMANCE OF THE FUND IS NOT INDICATIVE OF FUTURE PERFORMANCE.
Class A Class A Class B Class B Class C Russell
Adjusted Adjusted 2000
1 year 36.13% 30.04% 35.18% 30.18% 36.49% 33.19%
3 years 28.72% 26.76% 27.74% 26.91% 29.02% 22.96%
Inception 23.36% 22.18% 27.57% 27.00% 23.56%* N/A
The inception date of the Class A shares is 12/14/92, the inception date of the
Class B shares is 8/15/94, and the inception date of the Class C shares is
2/4/94.
The performance reflected in the graph begins on 12/31/92.
The performance reflected in the table begins on the inception date of Class A
shares.
*The performance presented links the performance of Class C shares which were
created on Feb. 4, 1994 with the performance of Class A shares which were the
only class of shares issued by the Fund from inception on Dec. 14, 1992. The
annualized since inception return of Class C shares from the date they were
created is 23.77%.
EMERGING GROWTH FUND
INVESTMENT OBJECTIVE: TO PROVIDE GROWTH OF CAPITAL.
For the fiscal year ended September 30, 1997, the Fund's total return was
24.73%, compared with the Frank Russell 2000 Index return of 33.19%. The Fund
experienced a particularly rocky last quarter of 1996 when many of our
technology issues suffered serious declines. Most of the Fund's relative
underperformance can be attributed to that quarter.
Performance of small capitalization companies lagged that of larger
companies, as was true a year ago, but the trend appears to have reversed in the
last two months of the fiscal year. When relative prices and expected growth
rates are considered, the larger capitalization issues appear to be more fully
valued than smaller capitalization stocks as a group.
<PAGE>
PORTFOLIO PERFORMANCE DISCUSSION
September 30, 1997
The Fund has increased consumer issues while reducing technology issues in
recent months. Technology is still slightly overweighted compared to the market
indices, but many of the issues in the sector we own have risen in value. When
the holdings appear to be fully valued, we have been selling them. At the same
time, consumer cyclicals continue to be relatively cheap, leading us to increase
holdings with the greatest potential returns.
Strong performers this year included Advanced Energy, Closure Medical, Remec,
Keane, and Petroleum Geo-Services. Advanced Energy was one of our losers in
1996, but rebounded to nearly five times last year's price. The company
manufactures power conversion and control systems used in semi-conductor
production equipment. The market for this equipment, though highly cyclical, has
grown with high demand. The company is a leader in its field and was
significantly undervalued a year ago. We reduced our position at recent price
levels that more adequately reflected the value of the company.
Remec manufactures commercial wireless telecommunications equipment and
defense electronics products. Growth in the wireless products has been very
rapid as the licensees are now building their franchises in the United States.
Petroleum Geo-Services is an operator of marine seismic vessels. It has
developed leading expertise in 3-D seismic data acquisition used by energy
companies to assess the potential for oil or gas. The market has been strong
since energy companies have been scrambling to increase their energy reserves.
As a result, Petroleum Geo-Services has been able to sell proprietary seismic
data at rising prices, significantly increasing earnings.
As we compare the long-term prospects of companies against their current
prices, we are finding that more companies are overvalued today than a year ago.
The markets, however, continue to react strongly to very near term impacts,
allowing us to continue to find attractively priced companies with strong growth
potential. We think returns will be favorable again in the coming year, as we
continue to find undervalued companies with growth potential.
VALUE OF A $10,000 INVESTMENT
[PLOT POINTS GRAPH]
First American First American
Emerging Growth Fund Emerging Growth Fund Frank Russell
(Class A adjusted) (Class C) 2000 Stock Index
4/94 9550 10000 10000
9/94 10000 10453 10217
9/95 12883 13501 12603
9/96 14584 15309 14260
9/97 18191 19165 18993
PAST PERFORMANCE OF THE FUND IS NOT INDICATIVE OF FUTURE PERFORMANCE.
Class A Class A Class B Class B Class C Russell
Adjusted Adjusted 2000
1 year 24.73% 19.09% 24.01% 19.01% 25.19% 33.19%
3 years 22.07% 20.21% 21.22% 20.31% 22.39% 22.96%
Inception 20.66% 19.08% 22.80% 22.17% 20.86% N/A
The inception date of the Class A shares and Class C shares is 4/4/94, and the
inception date of the Class B shares is 8/15/94.
The performance reflected in the graph begins on 4/30/92.
The performance reflected in the table begins on the inception date of Class A
shares.
INTERNATIONAL FUND
INVESTMENT OBJECTIVE: TO PROVIDE LONG-TERM GROWTH OF CAPITAL.
For the fiscal year ended September 30, 1997, the Fund produced a total
return of 30.03%, compared with 12.19% for the MSCI EAFE Index.
The driving theme behind performance for the year has been our focus on large
capitalization, foreign multinational corporations with global franchises. The
strength of the U.S. dollar has been instrumental in the appreciation of these
stocks. As foreign currencies weaken versus the dollar, foreign companies with
global scope are able to benefit from an enhanced competitive position relative
to their U.S. peers. This results in improved sales and rising profits when
translated back into their local currencies. Two companies that fit this theme
are Nokia (Finland) and L.M. Ericsson (Sweden). These firms supply telephone
infrastructure equipment and cellular handsets globally. They are benefiting
from the boom in cellular telephone worldwide.
<PAGE>
PORTFOLIO PERFORMANCE DISCUSSION
September 30, 1997
Other themes represented in the Fund include major pharmaceutical companies,
such as Novartis (Switzerland) and Smithkline Beecham (U.K.) These companies
benefit from a major new drug cycle and significant exposure to the United
States, the world's largest drug market. Additionally, the Fund is invested in
international oil firms such as Royal Dutch (The Netherlands) and Elf Acquitaine
(France), both dollar-earners that are undergoing dramatic restructuring and
cost-cutting efforts. And, finally, the Fund owns companies benefiting from the
trend toward corporate outsourcing. Two such companies are SAP (Germany) and Cap
Gemini (France), both of which provided positive impact to the portfolio.
The strengthening of the dollar also provided another benefit to relative
returns to the portfolio. While a strong dollar means that foreign returns are
eroded when translated back to American investors, we have been able to mitigate
some of that erosion through currency hedging. Currency hedging added about 7%
to returns for the fiscal year.
Another significant factor in the portfolio's strong performance for the year
was the investment in Japan. While the Japanese index declined 16.3% in dollar
terms for the fiscal year ended September 30, 1997, the half weighting to the
benchmark index was a positive. However, the real key was our stock selection,
which provided absolute returns of 22.7%. Once again, our top-down approach,
which focuses on stock selection based on relative momentum, directed us to own
the export-oriented blue chip Japanese stocks which benefit from the strong
dollar. Stocks such as Sony, Bridgestone, Canon, Tokyo Electron and Takeda
Chemical dramatically outperformed the Japanese market and aided performance.
We are confident that even in a market correction these same stocks should
perform relatively well. The considerable number of companies in the Fund that
are in the midst of restructuring programs should continue to see the benefits
of cost cutting and improved margins, regardless of economic activity. Our
holdings in oils, foods and pharmaceuticals also provide a defensive base for
any significant downturn.
As long as the outlook for the dollar remains strong, we do not anticipate
significant changes to the portfolio. However, should events occur that alter
this outlook, investors should expect that we would move away from the current
dollar beneficiaries to whatever new leadership should emerge.
VALUE OF A $10,000 INVESTMENT
[PLOT POINTS GRAPH]
First American First American
International Equity Fund International Equity Fund Morgan Stanley
(Class A adjusted) (Class C) MSCI EAFE Index
4/94 9550 10000 10000
9/94 9587 10049 10094
9/95 9653 10128 10679
9/96 9831 10341 11600
9/97 12783 13483 13014
PAST PERFORMANCE OF THE FUND IS NOT INDICATIVE OF FUTURE PERFORMANCE.
Class A Class A Class B Class B Class C MS
Adjusted Adjusted EAFE
1 year 30.03% 24.23% 29.13% 24.13% 30.38% 12.19%
3 years 10.06% 8.39% 9.23% 8.10% 10.29% 8.84%
Inception 9.32% 7.89% 8.77% 7.97% 9.46% N/A
The inception date of the Class A shares is 4/7/94, the inception date of the
Class B shares is 8/15/94, and the inception date of the Class C shares is
4/4/94.
The performance reflected in the graph begins on 4/30/94.
The performance reflected in the table begins on the inception date of Class A
shares.
HEALTH SCIENCES FUND
INVESTMENT OBJECTIVE: TO PROVIDE LONG-TERM GROWTH OF CAPITAL.
For the fiscal year ended September 30, 1997, the Fund produced a total
return of 23.60%, compared with 33.19% for the Frank Russell 2000 Index and
26.00% for the Lipper Health/ Biotechnology Funds Average.
Health care issues have performed well in the past 12 months on an absolute
basis, although the sector has trailed the broader market averages in total
return. The strongest performers in health care were large capitalization
pharmaceutical companies, which were up 48% from one year ago. The small
capitalization biotechnology issues were not strong performers, but we
anticipate that they will
<PAGE>
PORTFOLIO PERFORMANCE DISCUSSION
September 30, 1997
perform at better levels in the near future. The Fund invests mainly in small
capitalization issues. Currently, one-fifth of the holdings are early-stage
companies with promising products that have not yet reached the market.
Good performers in the Fund during the past year include Closure Medical,
Sepracor, Chirex, Imnet Systems, Medtronic, Elan and Qiagen.
Closure Medical has developed medical adhesives already approved in Europe
and soon to be approved in the United States. These products may potentially
replace traditional sutures for a significant market share in hospital emergency
rooms. Johnson & Johnson will market the product.
Qiagen makes biotechnology products. Demand is growing as the major
pharmaceutical companies invest more money in bio-tech research. In addition,
the company has expanded from the European market into the U.S. market as
laboratories replace older, inefficient systems with its products.
Medtronic, a leader in the medical device industry, was recently sold when it
became overvalued relative to the market, even after adjusting for a positive
new-product outlook.
One holding that underperformed our expectations this year was Iddex
Laboratories. Iddex is a leading producer of diagnostic test kits used by
veterinary labs. It experienced a dramatic and unexpected slowdown in its rate
of growth (from about 40% per year to a decline in the most recent quarter). We
believe much of the decline was due to inventory build up because of moderating
growth. We have held the position expecting better performance as demand grows
for the company's product.
There are fewer bargains in health care issues now compared with last year
because of the strong valuations in the sector. However, we continue to see
opportunity and growth in the health care arena. A high level of new-product
research and development will lead to new and exciting products. At the same
time, consumers are getting older and their health care needs are increasing. In
addition, the strength of the global economy will increase health care spending
as the world uses its new found wealth to meet health care needs.
VALUE OF A $10,000 INVESTMENT
[PLOT POINTS GRAPH]
First American First American Lipper Health
Health Sciences Fund Health Sciences Frank Russell and Biotechnology
(Class A adjusted) Fund (Class C) 2000 Stock Index Funds Average
1/96 9554 10000 10000 10000
9/96 9428 9879 11087 10588
9/97 11653 12239 14767 13340
PAST PERFORMANCE OF THE FUND IS NOT INDICATIVE OF FUTURE PERFORMANCE.
Lipper
Health
Class A Class A Class B Class B Class C Russell Biotech-
Adjusted Adjusted 2000 nology
1 year 23.60% 18.09% 22.69% 17.69% 23.89% 33.19% 26.00%
Inception 12.66% 9.60% 11.79% 8.98% 12.90% N/A N/A
The inception date of the Class A, Class B, and Class C shares is 1/31/96.
The performance reflected in the graph begins on 1/31/96.
The performance reflected in the table begins on the inception date of Class A
shares.
TECHNOLOGY FUND
INVESTMENT OBJECTIVE: TO PROVIDE LONG-TERM GROWTH OF CAPITAL.
For the year ended September 30, 1997, this Fund produced a total return of
17.71%, compared to the Frank Russell 2000 Stock Index return of 33.19% and
35.69% for the Lipper Science and Technology Funds Average. The three-year
return for this Fund of 32.39% is significantly above the Frank Russell 2000
Stock Index return of 22.96% and is slightly below the 33.29% return of the
Lipper Science & Technology Funds Average.
Performance of the Fund for the past year lagged our benchmarks as a result
of our concentration in small capitalization issues, networking stocks and our
underweighting in
<PAGE>
PORTFOLIO PERFORMANCE DISCUSSION
September 30, 1997
semiconductors and semiconductor capital equipment stocks, which have performed
extremely well in recent months.
Potential investments for the Fund must exhibit three things: innovation, an
available market and a competitive advantage. This process resulted in the
selection of many strong performers during the past year, including CKS Group
and VDI Media. CKS Group is an advertising agency that specializes in new media
such as Internet advertising campaigns. VDI Media, using new technology, takes
in digital images from movie studios via fiber optic links and reproduces the
images digitally.
We are encouraged by the recent rebound in small capitalization and
technology issues. Looking ahead, we think that continued price declines in
technology products will stimulate demand for products. However, short-term
volatility as we have seen in the past will occur in this sector from time to
time.
VALUE OF A $10,000 INVESTMENT
[PLOT POINTS GRAPH]
First American First American Frank Russell Lipper
Technology Fund Technology Fund 2000 Stock Index Science & Technology
(Class A adjusted) (Class C) Funds Average
4/94 9550 10000 10000 10000
9/94 11051 11584 10217 10863
9/95 18370 19255 12603 17470
9/96 21786 22885 14260 18931
9/97 25645 26993 18993 25687
PAST PERFORMANCE OF THE FUND IS NOT INDICATIVE OF FUTURE PERFORMANCE.
Lipper
Class A Class A Class B Class B Class C Russell Science &
Adjusted Adjusted 2000 Technology
1 year 17.71% 12.39% 16.82% 11.82% 17.95% 33.19% 35.69%
3 years 32.39% 30.36% 31.29% 30.51% 32.57% 22.96% 33.23%
Inception 31.44% 29.72% 35.19% 34.68% 31.60% N/A N/A
The inception date of the Class A and Class C shares is 4/4/94, and the
inception date of the Class B shares is 8/15/94.
The performance reflected in the graph begins on 4/30/94.
The performance reflected in the table begins on the inception date of Class A
shares.
<PAGE>
PORTFOLIO PERFORMANCE DISCUSSION
September 30, 1997
FIRST AMERICAN FUNDS
FOOTNOTES
A few notes and definitions are needed for a complete understanding of the
performance figures.
The performance data quoted represents past performance. The principal value
of an investment will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost. Money Market investments are
neither insured nor guaranteed by the U.S. Government. There can be no assurance
that the Money Market Funds will be able to maintain a stable Net Asset Value of
$1.00 per share. Total return measures performance, assuming that all dividends
and capital gains distributions were reinvested.
Total return, both with and without a sales charge, has been presented. All
total returns are quoted for the Class A shares before sales charges. For
shareholders who have not bought or sold shares during the period quoted, the
non-adjusted figures are probably more meaningful to you than the adjusted
figures. The adjusted figures for Class A shares include the effect of paying
the maximum initial sales charge of either 3.00% for all tax free funds, 2.00%
for the Limited Term Income Fund, 3.00% for the Intermediate Government Bond
Fund, 3.75% for the Intermediate Term Income and Fixed Income Funds, and 4.5%
for all equity funds.The adjusted figures for Class B shares include the effect
of paying the 5% contingent deferred sales charge (CDSC), which declines from 5%
in the first year to 0% at the beginning of the seventh year.
The First American International Fund invests primarily in foreign
securities, which can involve special risks due to foreign economic and
political developments. The Emerging Growth, Regional Equity and Micro Cap Value
Funds generally invest in small-cap stocks, which can be riskier than the
overall stock market.
Line graphs have been included so an investor can compare a fund's historical
performance to that of an appropriate broad-based index. The index does not
reflect the deduction of expenses associated with mutual funds, such as
investment management, fund accounting, legal, registration, SEC and transfer
agent expenses.The fund's performance reflects the deduction of fees for these
value-added services.
Lipper averages are calculated by Lipper Analytical Services, Inc., a
nationally recognized mutual fund performance evaluation firm. They are
performance averages of those funds that are tracked by Lipper, with the
investment objective noted. Lipper rankings are based on total returns, not
adjusted for sales charges.
Morningstar proprietary ratings reflect historical risk-adjusted performance
as of 9/30/97. The ratings are subject to change every month. Past performance
is no guarantee of future results. Morningstar ratings are calculated from the
funds' 3-, 5-, and 10-year average annual returns (if available) in excess of
90-day Treasury bill returns with appropriate fee adjustments, and a risk factor
that reflects fund performance below 90-day T-bill returns. Domestic Equity
funds were ranked among 2,143 and 1,187 funds for the 3- and 5-year periods,
respectively. Municipal funds were ranked among 1,374 and 668 funds for the 3-
and 5-year periods, respectively. Taxable bond funds were ranked among 1,309 and
713 funds for the 3- and 5-year periods, respectively. Ten percent of the funds
in a rating universe receive five stars, 22.5% receive four stars, 35% receive
three stars, and 22.5% receive two stars.
<PAGE>
INDEPENDENT AUDITORS' REPORT
September 30, 1997
The Board of Directors and Shareholders
First American Investment Funds, Inc.
First American Funds, Inc.:
We have audited the accompanying statements of net assets as of September 30,
1997, and the related statements of operations, the statements of changes in net
assets and the financial highlights for each of the twenty-three funds
constituting First American Investment Funds, Inc., and for each of the three
funds constituting First American Funds, Inc. for each of the periods presented.
These financial statements and the financial highlights are the responsibility
of the funds' management. Our responsibility is to express an opinion on these
financial statements and the financial highlights based on our audits. The
financial highlights of Equity Income Fund and Diversified Growth Fund for the
periods presented ended November 30, 1993, were audited by other auditors whose
reports dated January 20, 1994, expressed unqualified opinions on this
information.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and the financial
highlights are free of material misstatement. An audit also includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements. Investment securities held in custody are confirmed to us
by the custodian. As to securities purchased and sold but not received or
delivered and securities on loan, we request confirmations from brokers and
where replies are not received, we carry out other appropriate auditing
procedures. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and the financial highlights
referred to above present fairly, in all material respects, the financial
position of each of the twenty-three funds constituting First American
Investment Funds, Inc., and each of the three funds constituting First American
Funds, Inc. as of September 30, 1997, and the results of their operations,
changes in their net assets and the financial highlights for each of the periods
presented, in conformity with generally accepted accounting principles.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
November 7, 1997
Independent Auditors' Report
<PAGE>
(This page has been left blank intentionally.)
<PAGE>
STATEMENTS OF NET ASSETS
September 30, 1997
PRIME OBLIGATIONS FUND
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
COMMERCIAL PAPER--49.6%
BROKERAGE--1.3%
Bear Stearns
5.530%, 10/17/97 $ 25,000 $ 24,939
Credit Suisse First Boston
5.971%, 10/20/97 (B) 25,000 24,923
----------
49,862
----------
CAPTIVE FINANCE--1.1%
Bell Atlantic Financial Services
5.576%, 10/09/97 35,000 34,957
Ford Motor Credit
5.618%, 10/01/97 4,000 4,000
5.581%, 10/14/97 4,000 3,992
----------
42,949
----------
COMMERCIAL FUNDING CORPORATIONS--19.5%
Distribution Funding
5.573%, 10/02/97 (B) 5,000 4,999
5.603%, 10/02/97 (B) 5,340 5,339
5.585%, 10/07/97 (B) 34,660 34,628
5.591%, 10/14/97 (B) 33,500 33,433
5.585%, 11/03/97 (B) 15,000 14,924
Equipment Funding
5.583%, 10/03/97 25,275 25,267
5.557%, 10/07/97 30,000 29,972
5.635%, 11/05/97 9,992 9,938
Equipment Intermediation Partnership
5.534%, 10/02/97 (B) 47,025 47,018
5.565%, 10/07/97 (B) 30,000 29,972
5.635%, 11/05/97 (B) 46,438 46,185
Fleet Funding
5.568%, 10/21/97 (B) 25,000 24,923
Pooled Accounts Receivable Capital
5.552%, 10/01/97 (B) 25,000 25,000
5.558%, 10/06/97 (B) 25,129 25,110
5.570%, 10/17/97 (B) 25,137 25,075
5.576%, 10/23/97 (B) 20,000 19,932
5.607%, 10/27/97 (B) 26,370 26,264
5.586%, 11/10/97 (B) 20,166 20,042
5.622%, 11/25/97 (B) 27,764 27,528
Premium Funding E
5.581%, 10/02/97 (B) 20,000 19,997
5.614%, 10/06/97 (B) 35,487 35,460
5.585%, 10/08/97 (B) 15,000 14,984
5.578%, 10/20/97 (B) 28,911 28,826
5.592%, 10/24/97 (B) 29,946 29,839
5.608%, 10/27/97 (B) 28,714 28,598
5.626%, 10/29/97 (B) 20,000 19,913
PRIME OBLIGATIONS FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Receivables Capital
5.578%, 10/01/97 (B) $ 25,031 $ 25,031
5.567%, 10/10/97 (B) 30,000 29,958
5.581%, 10/10/97 (B) 23,112 23,080
5.576%, 10/16/97 (B) 15,386 15,350
5.557%, 10/20/97 (B) 25,000 24,927
----------
771,512
----------
DIVERSIFIED FINANCE--1.1%
American Express Credit
5.589%, 10/14/97 4,000 3,992
Commercial Credit
5.607%, 11/07/97 40,000 39,772
----------
43,764
----------
DOMESTIC BANKS--10.7%
Hahn Issuing II (LOC: Citibank)
5.558%, 10/07/97 20,721 20,702
5.582%, 10/20/97 26,000 25,924
International Securitization
(Guarantor: FNB Chicago)
5.584%, 10/21/97 (B) 40,000 39,877
5.599%, 10/27/97 (B) 45,000 44,820
5.590%, 11/07/97 (B) 10,071 10,014
5.595%, 11/13/97 (B) 16,405 16,296
5.707%, 02/26/98 (B) 13,304 12,999
5.708%, 02/27/98 (B) 27,228 26,600
Kzh-Ing-1 (LOC: Chase Manhattan)
5.623%, 10/24/97 (B) 15,131 15,077
5.640%, 10/28/97 (B) 9,131 9,093
5.580%, 11/26/97 (B) 9,120 9,041
5.657%, 12/01/97 (B) 9,092 9,006
Kzh Crescent (LOC: Chase Manhattan)
5.635%, 11/28/97 (B) 8,812 8,733
5.759%, 02/27/98 (B) 4,531 4,426
5.637%, 11/28/97 (B) 9,105 9,023
5.731%, 01/30/98 (B) 4,242 4,163
5.760%, 03/03/98 (B) 7,732 7,548
Kzh Holding III (LOC: Chase Manhattan)
5.650%, 10/10/97 (B) 7,610 7,599
5.625%, 10/15/97 (B) 10,635 10,612
5.604%, 10/21/97 (B) 5,037 5,021
5.637%, 12/01/97 (B) 7,589 7,518
5.580%, 12/03/97 (B) 9,917 9,820
5.654%, 12/19/97 (B) 30,000 29,633
5.679%, 12/29/97 (B) 6,052 5,969
5.759%, 02/27/98 (B) 9,108 8,897
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
PRIME OBLIGATIONS FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Kzh Soleil (LOC: Chase Manhattan)
5.606%, 10/08/97 (B) $ 27,035 $ 27,006
5.605%, 10/09/97 (B) 16,324 16,304
5.580%, 11/26/97 (B) 5,061 5,017
5.658%, 12/08/97 (B) 9,582 9,481
5.758%, 02/17/98 (B) 5,117 5,006
----------
421,225
----------
FOREIGN BANKS--7.5%
Banco Real S A (LOC: Barclays Bank)
5.902%, 10/01/97 25,000 25,000
Biltmore Capital (LOC: Bank of Tokyo-Mitsubishi)
5.607%, 10/09/97 5,000 4,994
Casio Phonemate (LOC: Bank of Tokyo-Mitsubishi)
5.640%, 10/17/97 14,000 13,965
China International Marine Containers Group
(LOC: Societe Generale)
5.583%, 10/08/97 20,000 19,979
Cosco Cayman Limited (LOC: Credit Suisse)
5.586%, 11/03/97 20,000 19,898
Hartz 667 (LOC: Bank of Tokyo-Mitsubishi)
5.607%, 10/06/97 15,640 15,628
5.606%, 10/08/97 34,670 34,632
5.626%, 10/22/97 41,260 41,125
Koc Funding (LOC: Credit Suisse)
5.994%, 02/13/98 10,000 9,784
6.064%, 02/13/98 10,000 9,783
Mitsubishi Motors Credit America
(LOC: Bank of Tokyo-Mitsubishi)
5.617%, 10/01/97 15,000 15,000
Pemex Capital (LOC: Credit Suisse)
5.856%, 10/22/97 15,000 14,950
Towson Town Center
(LOC: Bank of Tokyo-Mitsubishi)
5.631%, 10/09/97 12,685 12,669
5.646%, 10/15/97 20,000 19,956
5.621%, 10/17/97 8,500 8,479
5.629%, 10/21/97 20,000 19,938
US Prime Property (LOC: Westpac Banking)
5.690%, 02/17/98 12,400 12,135
----------
297,915
----------
FOREIGN FUNDING CORPORATIONS--2.1%
Sigma Finance
5.620%, 10/06/97 (B) 24,000 23,982
5.622%, 10/09/97 (B) 12,975 12,959
5.597%, 10/27/97 (B) 28,000 27,888
5.712%, 02/02/98 (B) 20,000 19,616
----------
84,445
----------
PRIME OBLIGATIONS FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
RETAIL FUNDING CORPORATIONS--6.3%
Enterprise Funding
5.575%, 10/03/97 (B) $ 45,979 $ 45,965
5.569%, 10/14/97 (B) 10,000 9,980
5.713%, 02/19/98 (B) 10,000 9,783
5.961%, 02/27/98 (B) 13,768 13,442
First Deposit Master Trust
5.550%, 10/03/97 (B) 17,982 17,976
5.563%, 10/08/97 (B) 24,000 23,974
5.555%, 10/16/97 (B) 30,000 29,931
5.567%, 10/17/97 (B) 34,700 34,615
5.586%, 10/23/97 (B) 20,000 19,932
5.588%, 11/06/97 (B) 35,000 34,806
5.630%, 11/13/97 (B) 8,338 8,283
----------
248,687
----------
TOTAL COMMERCIAL PAPER
(Cost $1,960,359) 1,960,359
----------
CORPORATE OBLIGATIONS--30.2%
BROKERAGE--10.1%
Bankers Trust
5.840%, 10/01/97 (A) (B) 105,000 105,000
Bear Stearns
5.740%, 10/01/97 (A) 100,000 100,000
Morgan Stanley
5.706%, 10/15/97 (A) 75,000 75,000
Structured Enhanced Return Trust 1995
(Guarantor: Merrill Lynch)
5.742%, 12/18/97 (B) 35,000 35,000
WFP Tower B Finance Short Term Steers Trust
(Guarantor: Merrill Lynch)
5.716%, 10/08/97 (A) 84,343 84,341
----------
399,341
----------
CAPTIVE FINANCE--1.3%
Ford Motor Credit
7.125%, 12/01/97 9,760 9,776
8.000%, 12/01/97 10,315 10,351
9.375%, 12/15/97 10,920 10,992
6.250%, 02/26/98 4,000 4,000
9.250%, 06/15/98 14,415 14,733
----------
49,852
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
PRIME OBLIGATIONS FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
DIVERSIFIED FINANCE--2.3%
American General Finance
8.250%, 01/15/98 $ 11,500 $ 11,582
Associates of North America
7.250%, 05/15/98 3,660 3,690
5.250%, 09/01/98 5,000 4,973
6.500%, 09/09/98 18,650 18,750
Beneficial
8.220%, 06/15/98 11,865 12,054
General Electric Capital
5.050%, 02/09/98 4,000 3,983
Household Finance
7.550%, 03/16/98 12,450 12,527
International Lease Finance
5.870%, 02/13/98 10,850 10,848
5.625%, 03/01/98 6,450 6,434
8.350%, 10/01/98 6,469 6,622
----------
91,463
----------
DOMESTIC BANKS--3.0%
Credit Suisse First Boston
6.148%, 06/02/98 (B) 8,000 8,015
SMM Trust 1996-D
(Guarantor: Morgan Guaranty)
5.706%, 10/28/97 (A) (B) 110,000 110,000
----------
118,015
----------
FINANCIAL SERVICES--0.1%
Goldman Sachs
6.100%, 04/15/98 3,000 3,004
----------
FOREIGN FUNDING CORPORATIONS--6.4%
Beta Finance
5.870%, 01/30/98 (B) 30,000 30,016
Salts III Cayman Island Series 1997-1
(Guarantor: Bankers Trust)
6.064%, 12/18/97 (B) 100,000 100,000
5.943%, 01/23/98 (B) 80,000 80,000
Sigma Finance
5.870%, 01/20/98 (B) 15,000 14,986
5.915%, 03/05/98 (B) 27,000 26,995
----------
251,997
----------
PRIME OBLIGATIONS FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
INSURANCE--7.0%
Anchor National Life Insurance Investment
5.670%, 10/01/97 (A) (C) $ 75,000 $ 75,000
Commonwealth Life Insurance
5.806%, 10/01/97 (A) (C) 125,000 125,000
Sun Life Insurance of America
6.000%, 10/01/97 (A) (C) 75,000 75,000
----------
275,000
----------
TOTAL CORPORATE OBLIGATIONS
(Cost $1,188,672) 1,188,672
----------
CERTIFICATES OF DEPOSIT--7.9%
Bankers Trust
6.000%, 09/10/98 35,000 34,981
FCC National Bank of Wilmington
5.725%, 01/07/98 50,000 49,990
Mercantile Safe Deposit & Trust
5.716%, 10/01/97 (A) 20,000 20,000
5.706%, 10/06/97 (A) 20,000 20,000
Mercantile Safe Deposit & Trust
5.160%, 03/02/98 5,640 5,624
Societe Generale Institutional
6.585%, 10/01/97 (A) 100,000 99,939
Societe Generale Institutional
5.770%, 01/09/98 25,000 24,971
5.800%, 01/13/98 25,000 24,999
6.340%, 04/16/98 20,000 19,996
6.105%, 05/26/98 10,000 10,005
----------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $310,505) 310,505
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS--4.2%
Export-Import Bank
5.779%, 10/15/97 (A) (B) 70,455 70,445
Export-Import Bank/KA Leasing
5.739%, 10/15/97 (A) (B) 36,163 36,163
SLMA
5.410%, 10/07/97 (A) 21,150 21,148
5.320%, 10/07/97 (A) 38,400 38,191
U.S. AID
5.890%, 10/07/97 (A) 1,250 1,248
----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $167,195) 167,195
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
PRIME OBLIGATIONS FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
LOAN PARTICIPATION CERTIFICATES--3.3%
Barclays Bank (Morgan Stanley)
5.570%, 10/15/97 $ 50,000 $ 50,000
5.560%, 10/16/97 50,000 50,000
Toronto Dominion Bank
(National Rural Utilities)
5.570%, 10/03/07 30,000 30,000
----------
TOTAL LOAN PARTICIPATION CERTIFICATES
(Cost $130,000) 130,000
----------
ASSET-BACKED SECURITY--2.8%
CARCO Auto Loan Master Trust 1993-2 A1
5.575%, 10/15/97 (A) 111,500 111,500
----------
TOTAL ASSET-BACKED SECURITY
(Cost $111,500) 111,500
----------
REPURCHASE AGREEMENT--2.0%
Nomura Securities
6.100%, dated 09/30/97, matures 10/01/97,
repurchase price $80,320,608
(collateralized by U.S. Treasury Instruments:
total market value $81,914,140) 80,307 80,307
----------
TOTAL REPURCHASE AGREEMENT
(Cost $80,307) 80,307
----------
TOTAL INVESTMENTS--100.0%
(Cost $3,948,538) 3,948,538
----------
OTHER ASSETS AND LIABILITIES, NET--0.0% 678
----------
NET ASSETS:
Portfolio Shares--Institutional Class
($.01 par value--20 billion authorized) based
on 3,615,864,191 outstanding shares 3,615,864
Portfolio Shares--Retail Class A
($.01 par value--20 billion authorized) based
on 218,262,281 outstanding shares 218,262
Portfolio Shares--Retail Class B
($.01 par value--20 billion authorized) based
on 2,020,273 outstanding shares 2,020
Portfolio Shares--Corporate Trust Class
($.01 par value--20 billion authorized) based
on 113,070,148 outstanding shares 113,070
----------
TOTAL NET ASSETS--100.0% $3,949,216
----------
PRIME OBLIGATIONS FUND (CONCLUDED)
DESCRIPTION VALUE
- --------------------------------------------------------------------------------
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
----------
(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 September 30, 1997. The date shown is the next
reset date.
(B) Security sold within the terms of a private placement memorandum, exempt
from registration under section 4(2) or 144A of the Securities Act of 1933,
as amended, and may be sold only to dealers in that program or other
"accredited investors." These securities have been determined to be liquid
under guidelines established by the Board of Directors.
(C)Private Placement Securities considered illiquid investments.
AID--Agency for International Development
LOC--Letter of Credit
SLMA--Student Loan Marketing Association
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
GOVERNMENT OBLIGATIONS FUND
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--51.1%
Export-Import Bank
5.779%, 10/15/97 (A) (B) $ 30,000 $ 29,996
5.739%, 10/15/97 (A) (B) 18,198 18,199
5.750%, 10/15/97 (A) (B) 25,000 25,000
FFCB
5.790%, 10/01/97 (A) 20,000 20,019
5.450%, 03/03/98 22,000 21,954
5.900%, 06/02/98 20,000 20,013
5.750%, 07/01/98 7,000 7,000
FHLB
5.760%, 10/01/97 5,000 5,000
5.790%, 10/01/97 (A) 13,000 12,982
6.000%, 10/01/97 (A) 25,000 25,021
5.505%, 10/02/97 45,600 45,593
5.589%, 12/04/97 (A) 20,000 19,995
5.490%, 01/02/98 10,000 9,995
5.650%, 01/07/98 4,000 4,000
5.960%, 06/09/98 3,000 3,002
5.760%, 07/08/98 8,440 8,440
5.755%, 09/30/98 14,750 14,750
FHLMC
5.443%, 10/20/97 (A) 50,000 49,982
FNMA
5.460%, 10/01/97 (A) 50,000 49,996
5.680%, 10/07/97 22,380 22,380
9.550%, 11/10/97 3,700 3,716
5.420%, 12/16/97 10,000 9,998
5.480%, 01/02/98 16,350 16,332
6.080%, 05/06/98 15,000 15,009
5.630%, 08/14/98 15,000 14,976
SLMA
5.250%, 10/07/97 (A) 30,000 30,000
5.320%, 10/07/97 (A) 14,000 13,983
5.410%, 10/07/97 (A) 15,000 15,000
5.615%, 10/29/97 30,000 30,000
5.850%, 06/10/98 10,000 10,005
5.600%, 08/11/98 15,000 14,977
5.820%, 09/16/98 14,400 14,408
U.S. AID
5.510%, 10/07/97 (A) 28,000 28,005
5.560%, 10/07/97 (A) 850 850
5.764%, 10/07/97 (A) 15,000 15,000
5.774%, 10/07/97 (A) 10,000 9,988
----------
GOVERNMENT OBLIGATIONS FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $655,564) $ 655,564
----------
OTHER U.S. GOVERNMENT OBLIGATIONS--9.9%
Downey Savings & Loan
(LOC: FHLB of San Francisco)
5.686%, 10/24/97 $ 20,000 19,929
5.465%, 11/18/97 25,000 24,825
5.680%, 12/05/97 10,000 9,902
5.680%, 03/27/98 9,000 8,758
Secondary Market Services
(LOC: SLMA of San Francisco)
5.526%, 10/06/97 23,066 23,048
5.497%, 10/20/97 20,871 20,811
5.524%, 10/22/97 20,000 19,936
----------
TOTAL OTHER U.S. GOVERNMENT OBLIGATIONS
(Cost $127,209) 127,209
----------
REPURCHASE AGREEMENTS--38.9%
Lehman Brothers
6.000%, dated 09/30/97, matures 10/01/97,
repurchase price $119,552,922
(collateralized by U.S. Treasury Instruments:
total market value $121,923,780) 119,533 119,533
Nomura Securities
6.100%, dated 09/30/97, matures 10/01/97,
repurchase price $260,044,056 (collateralized
by U.S. Treasury Instruments: total market
value $265,200,538) 260,000 260,000
Prudential Securities
6.080%, dated 09/30/97, matures 10/01/97,
repurchase price $120,020,267 (collateralized
by U.S. Treasury and Government Agency
Instruments: total market
value $122,401,199) 120,000 120,000
----------
TOTAL REPURCHASE AGREEMENTS
(Cost $499,533) 499,533
----------
TOTAL INVESTMENTS--99.9%
(Cost $1,282,306) 1,282,306
----------
OTHER ASSETS AND LIABILITIES, NET--0.1% (C) 1,089
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
GOVERNMENT OBLIGATIONS FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- -------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares--Institutional Class
($.01 par value--20 billion authorized) based
on 946,221,708 outstanding shares $ 946,222
Portfolio Shares--Corporate Trust Class
($.01 par value--20 billion authorized) based
on 337,210,778 outstanding shares 337,210
Accumulated net realized loss on investments (37)
----------
TOTAL NET ASSETS--100.0% $1,283,395
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--INSTITUTIONAL CLASS $ 1.00
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--CORPORATE TRUST CLASS $ 1.00
----------
(A) Variable Rate Security--the rate reported on the Statement of Net Assets is
the rate in effect as of September 30, 1997. 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) Other assets and liabilities representing greater than five percent of total
net assets include the following:
Cash collateral received for securities on loan $ 144,884
Payable upon return of securities on loan $(144,884)
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
TREASURY OBLIGATIONS FUND
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS--19.1%
U.S. Treasury Bills
5.530%, 12/11/97 $ 25,000 $ 24,741
5.650%, 01/08/98 50,000 49,258
5.525%, 02/05/98 50,000 49,074
5.910%, 03/05/98 50,000 48,794
5.945%, 04/02/98 50,000 48,571
5.880%, 04/30/98 25,000 24,187
5.590%, 05/28/98 25,000 24,118
5.570%, 08/20/98 25,000 23,817
U.S. Treasury Notes
5.625%, 10/31/97 45,000 45,004
5.750%, 10/31/97 25,000 25,003
7.875%, 01/15/98 50,000 50,320
7.875%, 04/15/98 50,000 50,517
5.875%, 04/30/98 25,000 24,990
6.125%, 05/15/98 50,000 50,058
8.250%, 07/15/98 50,000 50,948
5.250%, 07/31/98 50,000 49,832
6.125%, 08/31/98 75,000 75,294
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $714,526) 714,526
----------
REPURCHASE AGREEMENTS--81.1%
Bear Stearns
6.050%, dated 09/30/97, matures 10/01/97,
repurchase price $450,075,625
(collateralized by U.S. Treasury STRIPS:
total market value $458,982,000) 450,000 450,000
BT Securities
5.460%, dated 09/25/97, matures 10/01/97,
repurchase price $180,163,800 (collateralized
by U.S. Treasury Instruments: total market
value $183,583,000) 180,000 180,000
Donaldson, Lufkin & Jenrette
6.070%, dated 09/30/97, matures 10/01/97,
repurchase price $590,099,481
(collateralized by U.S. Treasury Instruments:
total market value $601,800,608) 590,000 590,000
First Boston
6.050%, dated 09/30/97, matures 10/01/97,
repurchase price $180,030,250 (collateralized
by U.S. Treasury Bonds: total market
value $184,053,485) 180,000 180,000
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
TREASURY OBLIGATIONS FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
First Union
5.470%, dated 09/25/97, matures 10/01/97,
repurchase price $180,164,100 (collateralized
by U.S. Treasury Instruments: total market
value $183,658,000) $ 180,000 $ 180,000
Goldman Sachs
5.460%, dated 09/26/97, matures 10/01/97,
repurchase price $180,136,500 (collateralized
by U.S. Treasury Instruments: total market
value $183,789,000) 180,000 180,000
Lehman Brothers
6.000%, dated 09/30/97, matures 10/01/97,
repurchase price $179,678,942
(collateralized by U.S. Treasury Instruments:
total market value $183,242,982) 179,649 179,649
Nomura Securities
6.100%, dated 09/30/97, matures 10/01/97,
repurchase price $240,040,667 (collateralized
by U.S. Treasury Instruments: total market
value $244,800,798) 240,000 240,000
Prudential Securities
6.080%, dated 09/30/97, matures 10/01/97,
repurchase price $180,030,400 (collateralized
by U.S. Treasury Note: total market
value $183,600,671) 180,000 180,000
Smith Barney
6.100%, dated 09/30/97, matures 10/01/97,
repurchase price $100,016,944 (collateralized
by U.S. Treasury Instruments: total market
value $102,000,203) 100,000 100,000
Societe Generale
6.100%, dated 09/30/97, matures 10/01/97,
repurchase price $180,030,500 (collateralized
by U.S. Treasury Instruments: total market
value $183,604,000) 180,000 180,000
UBS Securities
6.050%, dated 09/30/97, matures 10/01/97,
repurchase price $400,067,222 (collateralized
by U.S. Treasury Notes: total market
value $408,002,428) 400,000 400,000
----------
TOTAL REPURCHASE AGREEMENTS
(Cost $3,039,649) 3,039,649
----------
TOTAL INVESTMENTS--100.2%
(Cost $3,754,175) 3,754,175
----------
OTHER ASSETS AND LIABILITIES, NET--(0.2%) (9,163)
----------
TREASURY OBLIGATIONS FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares--Institutional Class
($.01 par value--20 billion authorized) based
on 897,798,054 outstanding shares $ 897,799
Portfolio Shares--Corporate Trust Class
($.01 par value--20 billion authorized) based
on 2,847,200,292 outstanding shares 2,847,200
Accumulated net realized gain on investments 13
----------
TOTAL NET ASSETS--100.0% $3,745,012
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--INSTITUTIONAL CLASS $ 1.00
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--CORPORATE TRUST CLASS $ 1.00
----------
STRIPS--Separately Trading of Registered Interest and Principal
of Securities
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
LIMITED TERM INCOME FUND
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
ASSET-BACKED SECURITIES--50.8%
ADJUSTABLE RATE MORTGAGES--2.6%
Merrill Lynch Mortgage Investors 1993-C A4
6.625%, 10/15/97 (A) $ 4,850 $ 4,909
----------
AUTO COMPANY SUBSIDIARIES - AUTO--1.4%
Premier Auto Trust 1993-4 B
4.950%, 02/02/99 410 410
Premier Auto Trust 1994-2 B
6.500%, 05/02/00 1,015 1,020
Premier Auto Trust 1994-3 B
6.800%, 12/02/99 1,270 1,287
----------
2,717
----------
BANKS - AUTO--4.2%
NAFCO Auto Trust
7.000%, 12/31/01 2,070 2,085
NAFCO Auto Trust 1996-1 A
6.330%, 12/21/02 416 417
New South Auto Trust 1994-B A
8.475%, 01/15/01 853 868
Southern Pacific Thrift & Loan Association
1996-C1 A1
5.975%, 04/25/28 (B) 1,211 1,211
Western Financial Grantor Trust 1994-3 B
6.650%, 12/01/99 568 572
Western Financial Grantor Trust 1994-4 A1
7.100%, 01/01/00 2,831 2,853
----------
8,006
----------
BANKS - BOATS & RV'S--2.1%
CFC Grantor Trust TR14
7.150%, 11/15/06 (B) 2,392 2,400
Chemical Financial Acceptance 1991-A A
6.450%, 12/15/97 1,685 1,686
----------
4,086
----------
BANKS - CREDIT CARD RECEIVABLES--10.7%
Banc One Credit Card Master Trust 1994-B
7.550%, 12/15/99 5,250 5,262
First USA Credit Card Master Trust 1996-1 B
5.946%, 10/15/97 (A) 1,500 1,502
Household Credit Card Master Trust 1995-1 B
6.006%, 10/15/97 (A) 6,375 6,391
MBNA Master Credit Card Trust 1994-B A*
5.480%, 01/15/02 7,300 7,291
----------
20,446
----------
LIMITED TERM INCOME FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
CONSUMER FINANCE - AUTO--13.0%
AFG Receivables Trust 1995-A A
6.150%, 09/15/00 $ 1,713 $ 1,718
Auto Bond Receivables Trust 1993-1 A
6.125%, 11/15/98 397 374
Budget Fleet Finance 1994-A (A) (B)
6.179%, 10/25/97 6,400 6,384
Fasco Auto Trust Series 1996-1 A
6.650%, 11/15/01 4,739 4,784
General Motors Acceptance 97-A
6.500%, 04/15/02 5,252 5,334
Premier Auto Trust Series 1994-4 A5
6.650%, 11/02/98 1,806 1,815
The Money Store Auto Grantor Trust 1997-2 A1
6.170%, 03/20/01 4,503 4,514
----------
24,923
----------
CONSUMER FINANCE - FIRST MORTGAGE RELATED--2.5%
Prudential Home Mortgage Securities 1992-36 A7
6.500%, 11/25/99 2,186 2,186
Prudential Home Mortgage Securities 1992-A D2-1
7.450%, 04/28/22 (B) 944 939
Prudential Home Mortgage Securities 1992-A3
7.000%, 04/25/99 644 644
Saxon Mortgage Securities 1994-4A 1A2
5.250%, 04/25/24 1,067 1,062
----------
4,831
----------
CONSUMER FINANCE - SECOND MORTGAGE RELATED--4.7%
Amresco Residential Securities 1996-5 A2
6.275%, 04/25/18 5,000 5,022
HFC Home Equity Loan Trust 1992-2 B
6.850%, 11/20/12 793 794
Household Finance 1993-1 A3
4.750%, 05/20/08 329 330
Household Finance Home Equity 1993-2 A3
4.650%, 12/20/08 2,817 2,806
IMC Home Equity Loan Trust 1996-2 A1
6.610%, 08/25/10 100 100
----------
9,052
----------
EQUIPMENT LEASES--4.9%
Icon Receivables 1997-A A-1
6.435%, 06/01/05 (B) 6,000 6,018
JLC Lease Receivables Trust 1994-1
5.895%, 10/22/97 (A) 3,359 3,359
----------
9,377
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
LIMITED TERM INCOME FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MEDICAL LEASES--0.8%
Amerisource Receivables Master Trust
1995-1 A
6.006%, 10/15/97 (A) (B) $ 1,500 $ 1,502
----------
MORTGAGE BANKERS & LOANS - SECOND MORTGAGE RELATED--2.3%
BCI Home Equity Loan 1994-1 B
6.288%, 10/29/97 (A) 2,085 2,104
Beneficial Home Equity Loan Trust Series
1996-1 B1
5.875%, 10/28/97 (A) 221 221
The Money Store Home Equity Loan Trust
1992-D1 A1
6.500%, 01/15/04 802 809
The Money Store Home Equity Loan Trust
1993-B A1
5.400%, 08/15/05 1,268 1,268
----------
4,402
----------
VACATION HOME MORTGAGES--1.6%
Patten 1995-1A
7.188%, 02/01/98 (A) (B) 1,911 1,908
RCI Vacation Ownership Mortgage Trust
1991-B
7.500%, 08/25/98 (A) (B) 1,137 1,138
----------
3,046
----------
TOTAL ASSET-BACKED SECURITIES
(Cost $96,989) 97,297
----------
OTHER MORTGAGE-BACKED OBLIGATIONS--6.0%
General Electric Capital Mortgage 1994-29 A1
8.300%, 11/25/24 1,621 1,616
Lehman Home Equity Loan Trust Series 1995-7 A2
6.490%, 03/25/12 2,946 2,976
Mortgage Obligation Structured Trust 1993-1 A1
6.350%, 10/25/18 40 40
Norwest Asset 1996-9 A3
6.500%, 01/25/27 2,602 2,600
Southern Pacific Secured Assets 1996-2 A2
6.720%, 10/25/97 (A) 2,211 2,236
UCFC Home Equity Loan 1995-B1 A2
6.600%, 07/10/09 2,006 2,015
----------
TOTAL OTHER MORTGAGE-BACKED OBLIGATIONS
(Cost $11,419) 11,483
----------
LIMITED TERM INCOME FUND (CONTINUED)
DESCRIPTION PAR (000)/SHARES VALUE (000)
- --------------------------------------------------------------------------------
CORPORATE OBLIGATIONS--4.0%
Salomon
7.000%, 05/15/99 $ 7,500 $ 7,603
----------
TOTAL CORPORATE OBLIGATIONS
(Cost $7,595) 7,603
----------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED OBLIGATIONS--7.2%
FHLMC 1229-G
6.800%, 07/15/05 313 314
FHLMC 1339-PG
7.000%, 08/15/17 3,447 3,461
FNMA 1992-152 J
7.000%, 05/25/06 7,500 7,535
GNMA 1995-7 D
7.500%, 04/16/10 2,483 2,497
----------
TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-BACKED OBLIGATIONS
(Cost $13,817) 13,807
----------
U.S. TREASURY OBLIGATIONS--28.4%
U.S. Treasury Bonds
6.125%, 05/15/98 $ 2,750 2,760
U.S. Treasury Notes
5.875%, 08/15/98 12,300 12,322
7.125%, 10/15/98 5,000 5,072
5.750%, 12/31/98 1,500 1,501
6.250%, 05/31/99 15,500 15,608
6.750%, 04/30/00 16,700 17,042
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $54,298) 54,305
----------
RELATED PARTY MONEY MARKET FUND--2.6%
First American Prime Obligations Fund (C) 5,026,470 5,027
----------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $5,027) 5,027
----------
TOTAL INVESTMENTS--99.0%
(Cost $189,145) 189,522
----------
OTHER ASSETS AND LIABILITIES, NET--1.0% (D) 1,998
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
LIMITED TERM INCOME FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares--Institutional Class
($.0001 par value--2 billion authorized) based
on 18,555,702 outstanding shares $ 187,427
Portfolio Shares--Retail Class A
($.0001 par value--2 billion authorized) based
on 719,548 outstanding shares 7,774
Accumulated net realized loss on investments (4,058)
Net unrealized appreciation of investments 377
----------
TOTAL NET ASSETS--100.0% $ 191,520
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--INSTITUTIONAL CLASS $ 9.94
----------
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE--RETAIL CLASS A $ 9.94
MAXIMUM SALES CHARGE OF 2.00% (1) 0.20
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 10.14
----------
(1) The offer price is calculated by dividing the net asset value by 1 minus the
maximum sales charge of 2.00%
(A) Variable Rate Security--the rate reported on the Statement of Net Assets is
the rate in effect as of September 30, 1997. The date shown is the next
reset 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.
(C) This money market fund is advised by U.S. Bank National Association who also
serves as Adviser for this Fund. See the Notes to the Financial Statements
for additional information.
(D) Other assets and liabilities representing greater than five percent of total
net assets include the following:
Cash collateral received for securities on loan $ 64,448
Payable upon return of securities on loan $(64,448)
FFCB--Federal Farm Credit Bank
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
GNMA--Government National Mortgage Association
INTERMEDIATE TERM INCOME FUND
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS--74.3%
U.S. Treasury Notes
5.125%, 04/30/98 $ 8,035 $ 8,019
6.250%, 03/31/99 24,175 24,346
6.250%, 05/31/99 33,860 34,095
6.750%, 04/30/00 42,200 43,064
6.375%, 03/31/01 44,355 44,901
6.250%, 02/15/03 35,900 36,248
7.250%, 08/15/04 22,775 24,224
6.875%, 05/15/06 26,550 27,749
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $241,716) 242,646
----------
CORPORATE OBLIGATIONS--7.6%
Bear Stearns
6.500%, 06/15/00 2,800 2,817
6.560%, 06/20/00 3,000 3,022
Cigna
7.400%, 01/15/03 3,075 3,163
Comdisco
5.780%, 01/19/99 6,450 6,418
Lehman Brothers
8.375%, 02/15/99 6,050 6,231
Metropolitan Life Insurance
6.300%, 11/01/03 (B) 3,155 3,096
----------
TOTAL CORPORATE OBLIGATIONS
(Cost $24,582) 24,747
----------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED OBLIGATIONS--7.6%
FHLMC
5.500%, 01/15/01 1,982 1,955
7.000%, 05/15/03 1,234 1,257
6.000%, 11/15/08 4,925 4,744
8.000%, 10/15/20 2,630 2,702
FNMA
7.000%, 06/25/02 2,425 2,449
7.000%, 06/25/03 2,683 2,729
6.500%, 01/18/04 2,000 1,998
6.500%, 11/25/07 1,000 1,006
6.500%, 05/18/20 2,750 2,747
GNMA
7.500%, 04/20/03 3,236 3,331
----------
TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-BACKED OBLIGATIONS
(Cost $24,844) 24,918
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
INTERMEDIATE TERM INCOME FUND (CONTINUED)
DESCRIPTION PAR (000)/SHARES VALUE (000)
- --------------------------------------------------------------------------------
OTHER MORTGAGE-BACKED OBLIGATIONS--3.3%
American Southwest Financial Securities
7.400%, 11/17/04 $ 8,320 $ 8,619
Drexel Burnham Lambert Trust S-2
9.000%, 08/01/18 54 55
Prudential Home Mortgage Securities 1994-28
6.751%, 10/01/97 (A) 2,214 2,236
----------
TOTAL OTHER MORTGAGE-BACKED OBLIGATIONS
(Cost $10,783) 10,910
----------
U.S.GOVERNMENT AGENCY OBLIGATIONS--2.8%
FHLB
7.280%, 05/18/99 2,000 2,042
FHLMC Callable 06/16/00 @ 100
6.970%, 06/16/05 1,000 1,007
FHLMC Callable 12/05/05 @ 100
6.660%, 12/05/05 1,000 991
FNMA
7.740%, 02/03/98 1,000 1,007
8.450%, 07/12/99 1,000 1,042
7.350%, 03/28/05 1,000 1,061
FNMA Callable 02/23/98 @ 100
7.890%, 02/23/00 2,000 2,019
----------
TOTAL U.S.GOVERNMENT AGENCY OBLIGATIONS
(Cost $9,082) 9,169
----------
ASSET-BACKED SECURITIES--0.6%
Fleet Finance Home Equity 1990-1
8.900%, 01/16/06 2 2
Zale Funding Series 94-1, Cl B (B)
7.500%, 05/15/03 2,000 2,017
----------
TOTAL ASSET-BACKED SECURITIES
(Cost $1,969) 2,019
----------
RELATED PARTY MONEY MARKET FUND--2.6%
First American Prime Obligations Fund (C) 8,344,093 8,344
----------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $8,344) 8,344
----------
TOTAL INVESTMENTS--98.8%
(Cost $321,320) 322,753
----------
OTHER ASSETS AND LIABILITIES, NET--1.2% (D) 3,981
----------
INTERMEDIATE TERM INCOME FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares--Institutional Class
($.0001 par value--2 billion authorized) based
on 32,474,228 outstanding shares $ 322,602
Portfolio Shares--Retail Class A
($.0001 par value--2 billion authorized) based
on 248,466 outstanding shares 2,521
Distribution in excess of net investment income (1)
Accumulated net realized gain on investments 179
Net unrealized appreciation of investments 1,433
----------
TOTAL NET ASSETS--100.0% $ 326,734
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--INSTITUTIONAL CLASS $ 9.98
----------
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE--
RETAIL CLASS A $ 10.00
MAXIMUM SALES CHARGE OF 3.75% (1) 0.39
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 10.39
----------
(1) The offer price is calculated by dividing the net asset value by 1 minus the
maximum sales charge of 3.75%.
(A) Variable Rate Security--the rate reported on the Statement of Net Assets is
the rate in effect as of September 30, 1997. The date shown is the next
reset 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.
(C) This money market fund is advised by U.S. Bank National Association who also
serves as Adviser for this Fund. See the Notes to the Financial Statements
for additional information.
(D) Other assets and liabilities representing greater than five percent of total
net assets include the following:
Cash collateral received for securities on loan $ 147,932
Payable upon return of securities on loan $(147,932)
FHLB--Federal Home Loan Bank
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
GNMA--Government National Mortgage Association
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
INTERMEDIATE GOVERNMENT BOND FUND
DESCRIPTION PAR (000)/SHARES VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS--92.4%
U.S. Treasury Notes
7.875%, 01/15/98 $ 1,250 $ 1,259
7.875%, 04/15/98 13,000 13,163
5.250%, 07/31/98 2,000 1,995
5.125%, 11/30/98 6,000 5,961
6.375%, 01/15/99 8,500 8,567
6.750%, 05/31/99 18,500 18,770
6.875%, 07/31/99 4,750 4,835
7.125%, 09/30/99 16,000 16,388
7.750%, 11/30/99 3,000 3,113
6.875%, 03/31/00 3,500 3,580
6.250%, 08/31/00 21,750 21,950
7.875%, 08/15/01 16,000 17,016
7.500%, 11/15/01 5,750 6,059
7.500%, 05/15/02 1,000 1,059
6.500%, 05/31/02 9,000 9,167
7.250%, 05/15/04 12,500 13,271
7.875%, 11/15/04 13,000 14,291
6.500%, 08/15/05 4,500 4,594
7.000%, 07/15/06 6,000 6,325
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $167,597) 171,363
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS--6.1%
FHLB
7.870%, 12/15/97 3,000 3,013
7.280%, 05/18/99 2,000 2,042
6.975%, 07/26/99 1,000 1,018
7.360%, 05/04/01 1,070 1,079
7.440%, 08/10/01 1,000 1,043
TVA
6.000%, 11/01/00 3,000 2,989
----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $11,084) 11,184
----------
RELATED PARTY MONEY MARKET FUND--0.0%
First American Government
Obligations Fund (A) 57,369 57
----------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $57) 57
----------
TOTAL INVESTMENTS--98.5%
(Cost $178,738) 182,604
----------
OTHER ASSETS AND LIABILITIES, NET--1.5% (B) 2,811
----------
INTERMEDIATE GOVERNMENT BOND FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares--Institutional Class
($.0001 par value--2 billion authorized) based
on 19,626,325 outstanding shares $ 178,211
Portfolio Shares--Retail Class A
($.0001 par value--2 billion authorized) based
on 380,039 outstanding shares 3,561
Accumulated net realized loss on investments (223)
Net unrealized appreciation of investments 3,866
----------
TOTAL NET ASSETS--100.0% $ 185,415
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--INSTITUTIONAL CLASS $ 9.27
----------
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE--RETAIL CLASS A $ 9.28
MAXIMUM SALES CHARGE OF 3.00% (1) 0.29
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 9.57
----------
(1) The offer price is calculated by dividing the net asset value by 1 minus the
maximum sales charge of 3.00%.
(A) This money market fund is advised by U.S. Bank National Association who also
serves as Adviser for this Fund. See the Notes to the Financial Statements
for additional information.
(B) Other assets and liabilities representing greater than five percent of total
net assets include the following:
Cash collateral received for securities on loan $ 95,661
Payable upon return of securities on loan $(95,661)
FHLB--Federal Home Loan Bank
TVA--Tennessee Valley Authority
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
FIXED INCOME FUND
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS--67.6%
U.S. Treasury Bond
7.125%, 02/15/23 $ 132,905 $ 143,240
U.S. Treasury Notes
5.125%, 04/30/98 38,310 38,235
6.250%, 05/31/99 112,045 112,824
6.750%, 04/30/00 52,845 53,927
6.375%, 03/31/01 62,340 63,107
6.250%, 02/15/03 37,365 37,727
7.250%, 08/15/04 17,900 19,039
6.875%, 05/15/06 24,080 25,168
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $487,603) 493,267
----------
OTHER MORTGAGE-BACKED OBLIGATIONS--9.6%
Collateralized Mortgage Corporation 88-13 C
8.000%, 09/20/19 75 78
Countrywide Mortgage-Backed Securities
1994-GA3
6.500%, 04/25/24 2,380 2,370
Drexel Burnham Lambert Trust S-2
9.000%, 08/01/18 473 483
General Electric Capital Mortgage 1994-11 A1
6.500%, 03/25/24 4,629 4,646
General Electric Capital Mortgage 1994-17 A6
7.000%, 05/25/24 7,000 7,024
General Electric Capital Mortgage 1994-17 A7
7.000%, 05/25/24 5,179 5,127
General Electric Capital Mortgage 1994-29 A1
8.300%, 11/25/24 1,783 1,778
GMAC Commercial Mortgage Securities 1997-C1
6.918%, 09/15/07 25,115 25,409
J.P. Morgan Commercial Mortgage Finance
1995-C1
7.623%, 10/01/97 (A) 10,329 10,807
Merrill Lynch Mortgage Investors 1993-A4
6.625%, 10/15/97 (A) 6,000 6,073
Prudential Home Mortgage Securities 1994-28
6.751%, 10/01/97 (A) 5,815 5,873
Residential Funding 1992-36 A2 P11
5.700%, 11/25/07 323 322
----------
TOTAL OTHER MORTGAGE-BACKED OBLIGATIONS
(Cost $68,319) 69,990
----------
CORPORATE OBLIGATIONS--10.9%
Bank America National Trust & Savings Association
8.375%, 05/01/07 133 134
Bear Stearns
6.560%, 06/20/00 23,835 24,014
FIXED INCOME FUND (CONTINUED)
DESCRIPTION PAR (000)/SHARES VALUE (000)
- --------------------------------------------------------------------------------
Cigna
7.400%, 01/15/03 $ 10,475 $ 10,776
GMAC
7.350%, 01/27/98 11,000 11,059
Metropolitan Life Insurance
6.300%, 11/01/03 (B) 11,990 11,765
Santander Financial Issuances
7.250%, 05/30/06 20,915 21,490
----------
TOTAL CORPORATE OBLIGATIONS
(Cost $78,116) 79,238
----------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED OBLIGATIONS--5.4%
FHLMC
6.750%, 12/15/05 5,046 5,013
7.000%, 04/17/06 13,337 13,599
6.000%, 11/15/08 1,275 1,228
6.500%, 12/15/23 5,439 5,325
6.500%, 01/15/24 7,337 6,842
7.000%, 02/15/24 7,133 7,164
----------
TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-BACKED OBLIGATIONS
(Cost $37,336) 39,171
----------
ASSET-BACKED SECURITIES--1.5%
CoreStates Home Equity Trust 1994-2 A2
7.000%, 10/15/09 6,500 6,553
Zale Funding 1994-1
7.500%, 05/15/03 (B) 4,100 4,135
----------
TOTAL ASSET-BACKED SECURITIES
(Cost $10,345) 10,688
----------
TAXABLE MUNICIPAL BONDS--0.5%
Minneapolis, Minnesota, Single Family
Mortgages, Callable 10/01/05 @ 100 (RB)
6.920%, 04/01/09 3,865 3,870
----------
TOTAL TAXABLE MUNICIPAL BONDS
(Cost $3,865) 3,870
----------
RELATED PARTY MONEY MARKET FUND--3.1%
First American Prime
Obligations Fund (C) 23,023,834 23,024
----------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $23,024) 23,024
----------
TOTAL INVESTMENTS--98.6%
(Cost $708,608) 719,248
----------
OTHER ASSETS AND LIABILITIES, NET--1.4% (D) 10,259
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
FIXED INCOME FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares--Institutional Class
($.0001 par value--2 billion authorized) based
on 64,393,856 outstanding shares $ 695,012
Portfolio Shares--Retail Class A
($.0001 par value--2 billion authorized) based
on 778,307 outstanding shares 8,617
Portfolio Shares--Retail Class B
($.0001 par value--2 billion authorized) based
on 1,398,464 outstanding shares 15,242
Undistributed net investment income 12
Accumulated net realized loss on investments (16)
Net unrealized appreciation of investments 10,640
----------
TOTAL NET ASSETS--100.0% $ 729,507
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--INSTITUTIONAL CLASS $ 10.96
----------
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE--
RETAIL CLASS A $ 10.97
MAXIMUM SALES CHARGE OF 3.75% (1) 0.43
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 11.40
----------
NET ASSET VALUE AND OFFERING PRICE PER SHARE--
RETAIL CLASS B (2) $ 10.91
----------
(1) The offer price is calculated by dividing the net asset value by 1 minus the
maximum sales charge of 3.75%. The date shown is the next reset date.
(2) Retail Class B has a contingent deferred sales charge. For a description of
possible redemption charge, see the notes to the financial statements.
(A) Variable Rate Security--the rate reported on the Statement of Net Assets is
the rate in effect as of September 30, 1997.
(B) Security sold within the terms of a private placement memorandum, exempt
from registration under section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or other
"accredited investors." These securities have been determined to be liquid
under guidelines established by the Board of Directors.
(C) This money market fund is advised by U.S. Bank National Association who also
serves as Adviser for this Fund. See the Notes to the Financial Statements
for additional information.
(D) Other assets and liabilities representing greater than five percent of total
net assets include the following:
Cash collateral received for securities on loan $ 335,556
Payable upon return of securities on loan $(335,556)
FHLMC--Federal Home Loan Mortgage Corporation
GMAC--General Motors Acceptance Corporation
RB--Revenue Bond
CALIFORNIA INTERMEDIATE TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS--97.8%
CALIFORNIA--96.1%
Anaheim Electric (RB)
4.800%, 10/01/02 $ 500 $ 511
Antioch Development Agency (RB) (FGIC)
6.000%, 09/01/00 100 105
Bakersfield, Convention Center Project (COP)
(MLO) (MBIA)
5.500%, 04/01/10 250 262
Burbank, Public Service Department (RB) (AMBAC)
6.100%, 06/01/01 200 213
California Educational Facilities Authority,
Occidental College, Callable 10/01/07
@ 102 (RB) (MBIA)
5.300%, 10/01/10 500 517
California Educational Facilities Authority,
Pooled College & University Projects, Series A (RB)
4.850%, 12/01/01 500 509
California Health Facilities Authority, John C
Fremont Hospital District (RB) (CMI)
6.000%, 06/01/04 400 424
California Health Facilities Finance
Authority (RB) (FSA)
5.500%, 08/15/06 500 536
California Housing Finance Agency,
Callable 08/01/04 @ 102 (RB)
6.550%, 02/01/05 150 160
California Housing Finance Agency, Home
Mortgages, Series A (RB) (MBIA)
5.000%, 08/01/03 195 200
California Housing Finance Agency,
Series E (RB) (MBIA)
5.850%, 08/01/04 150 157
California Industry, Callable 07/01/02
@ 100.25 (GO) (FGIC)
5.800%, 07/01/04 100 106
California Inland Empire Solid Waste Finance
Authority, Landfill Improvements Project,
Series B (RB) (AMT) (MLO) (FSA)
5.750%, 02/01/04 500 532
California Mid Peninsula Regional Open Space
District, Callable 09/01/99 @ 102 (PN)
7.400%, 09/01/04 385 414
California Resource Efficiency Finance Authority,
First Resource Efficiency Project (RB) (AMBAC)
5.200%, 07/01/02 500 521
California State (GO) (AMBAC)
6.300%, 11/01/02 300 329
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
CALIFORNIA INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
California State Department of Water, Center
Valley Project, Callable 12/01/05 @ 101 (RB)
5.000%, 12/01/12 $ 500 $ 493
California State Department of Water, Series P,
Callable 06/01/06 @ 101 (RB)
5.300%, 12/01/07 750 798
California State Health Facilities Financing Authority,
Catholic Healthcare West, Series A (RB) (MBIA)
5.000%, 07/01/03 500 516
California State Public Works (RB)
5.900%, 10/01/01 100 106
5.000%, 06/01/03 150 155
California State Public Works, Department of
Corrections, Series A (RB) (MLO) (AMBAC)
4.700%, 12/01/00 500 510
6.000%, 01/01/06 545 600
California State Public Works, Various University
Projects, Series A (RB) (MLO) (AMBAC)
5.400%, 12/01/00 250 260
California State, Housing and Homeless (GO) (AMT)
5.750%, 10/01/01 300 316
California Statewide Communities Development
Authority, Health Facilities, Series A,
Callable 08/01/03 @ 102 (COP) (CMI)
5.200%, 08/01/04 200 206
Contra Costa Water District, Series G (RB) (MBIA)
5.400%, 10/01/03 500 529
Escondido Civic Center Project, Escrowed to
Maturity (RB) (AMBAC)
5.800%, 09/01/04 100 109
Fontana, School District (GO) (MBIA)
5.550%, 07/01/04 500 534
Inglewood, Public Financing Authority
(RB) (AMBAC)
5.900%, 05/01/01 100 106
La Canada, Unified School District (GO) (FGIC)
5.100%, 08/01/03 400 417
Los Angeles County, Public Works Finance
Authority, Callable 03/01/03 @ 102 (RB)
4.800%, 03/01/04 400 405
Los Angeles County, Public Works Finance
Authority, Regional Park & Open Space District,
Series A (RB)
5.500%, 10/01/02 500 527
5.625%, 10/01/03 500 534
Los Angeles County, Transportation Commission,
Series B (RB) (FGIC)
5.875%, 07/01/02 250 267
6.000%, 07/01/04 250 274
CALIFORNIA INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Los Angeles, Department of Water & Power,
Callable 04/15/02 @ 102 (RB)
6.100%, 04/15/03 $ 250 $ 271
Los Angeles, Earthquake Rehabilitation, Series C,
Callable 01/01/00 @ 100 (RB) (AMT) (FNMA)
4.850%, 07/01/02 1,000 1,005
Los Angeles, Harbor Department,
Series B (RB) (AMT)
6.000%, 08/01/00 500 523
Los Angeles, Sanitation Equipment,
Series A (RB) (MLO) (FSA)
6.000%, 02/01/07 500 552
Los Angeles, School District,
Callable 07/01/08 @ 102 (GO) (FGIC)
4.900%, 07/01/09 300 302
Los Angeles, Series A, Callable 09/01/04
@ 102 (GO) (MBIA)
5.800%, 09/01/07 250 272
Martinez County, School District,
Callable 08/01/00 @ 102 (GO)
5.750%, 08/01/05 150 157
Montebello, Community Redevelopment
Agency (RB) (FSA)
4.750%, 09/01/07 270 269
Mt. Diablo, Unified School District, Community
Facilities District, Callable 08/01/02
@ 102 (RB) (AMBAC)
5.800%, 08/01/03 100 107
Northern California Ore Transmission
Project (RB) (MBIA)
6.000%, 05/01/02 100 107
Oakland-Alameda County, Coliseum Authority,
Series A (RB) (LOC: Canadian Imperial Bank) (MLO)
4.400%, 02/01/00 170 170
Oceanside, Water Systems (COP) (AMBAC)
5.100%, 08/01/02 500 519
Orange County, Juvenile Justice Center Facility
(COP) (MLO) (AMBAC)
5.750%, 06/01/01 100 105
Orange County, Transportation Authority,
Callable 02/15/02 @ 102 (RB)
5.700%, 02/15/03 900 954
Oxnard, School District (GO) (MBIA)
5.000%, 08/01/05 600 622
Paradise, Unified School District, Measure M Project,
Series A, Callable 09/01/05 @ 102
(COP) (MLO) (AMBAC)
5.250%, 09/01/07 300 315
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
CALIFORNIA INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Pomona, Unified School District,
Series A (GO) (MBIA)
5.450%, 02/01/06 $ 250 $ 267
5.500%, 08/01/06 250 269
Rancho Mirage Joint Powers Finance Authority,
Eisenhower Medical Center, Series A,
Callable 07/01/07 @ 102 (COP) (MBIA)
5.125%, 07/01/08 500 515
Rancho, Water District Finance Authority,
Mandatory Put @ 100 (RB) (LOC:
Toronto Dominion Bank)
4.700%, 09/15/01 (A) 250 252
Redding, Joint Powers Finance Authority,
Waste Water Project, Callable
12/01/02 @ 102 (RB) (FGIC)
5.600%, 12/01/03 100 107
Redondo Beach, Redevelopment Agency,
Residential Mortgages, FNMA Mortgage
Backed Securities Project, Series A,
Callable 12/01/97 @ 100 (RB) (FNMA)
5.150%, 06/01/03 150 152
Rio Linda, School District, Callable
08/01/08 @ 100 (GO) (FSA)
5.000%, 08/01/09 500 508
Roseville, High School District,
Callable 08/01/00 @ 102 (GO)
5.750%, 08/01/02 100 105
Sacramento County, Multifamily Housing,
Parcwood Apartments, Mandatory
Put @ 100 (RB) (CGLI)
4.800%, 09/01/02 (C) 1,000 1,009
Sacramento, Housing Authority, Fairways I
Apartments (RB) (FNMA)
5.875%, 02/01/08 90 91
San Diego County, Water Authority,
Series A (COP) (FGIC)
5.200%, 05/01/01 500 518
San Francisco, City & County Airport Commission,
Second Series (RB) (AMT) (FGIC)
5.400%, 05/01/06 500 523
San Francisco, City & County Library Facilities
Project, Series D, Callable 06/15/00 @ 102 (GO)
5.700%, 06/15/01 250 262
5.800%, 06/15/02 250 264
San Francisco, City & County Public Improvements,
Series B, Callable 12/15/00 @ 100 (GO)
6.700%, 12/15/07 200 213
CALIFORNIA INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
San Francisco, City & County Public Utilities
Commission, Series A, Pre-refunded
@ 102 (RB)
6.500%, 11/01/01 (B) $ 500 $ 554
San Francisco, Fire Department Facility Project,
Series C (GO) (FGIC)
7.000%, 06/15/03 300 341
San Francisco, Public Safety Project, Series C,
Callable 06/15/00 @ 102 (GO)
6.000%, 06/15/03 100 106
San Joaquin Hills, Transportation Corridor
Agency (RB) (MBIA) (C)
0.000%, 01/15/05 705 504
San Jose, Finance Authority, Convention Center
Project, Series C (RB) (MLO)
5.750%, 09/01/01 250 262
San Jose, Redevelopment Agency (RB) (MBIA)
4.600%, 08/01/01 500 509
Santa Ana, Community Redevelopment Agency,
Series A, Pre-refunded @ 102 (GO)
6.500%, 12/15/00 (A) 885 950
Santa Rosa, Wastewater, Series B (RB) (FGIC)
5.400%, 09/01/00 250 259
South County, Regional Waste Water Authority
(RB) (AMBAC)
5.600%, 08/01/02 100 106
Southern California Metropolitan Waterworks,
Series B (RB) (MBIA)
4.875%, 07/01/10 500 498
5.000%, 07/01/14 500 491
Stockton-East Water District, Callable 04/01/00
@ 102 (COP) (AMBAC)
5.550%, 04/01/01 100 103
Sulphur Springs, Unified School District,
Series B (GO)
5.400%, 03/01/02 500 519
Tulare County, Financing Project, Series A
(COP) (MLO) (MBIA)
5.600%, 11/15/02 100 106
Turlock, Irrigation District, Series A,
Callable 07/01/02 @ 102 (RB) (MBIA)
6.000%, 01/01/04 100 109
University of California, Various Capital Projects,
Series B, Callable 09/01/01 @ 102 (COP)
(MLO) (MBIA)
5.350%, 09/01/02 (D) 300 315
Walnut Valley School District (GO) (MBIA)
6.650%, 02/01/05 365 416
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
CALIFORNIA INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000)/SHARES VALUE (000)
- --------------------------------------------------------------------------------
Walnut Valley School District, Series A (GO) (MBIA)
6.800%, 02/01/07 $ 250 $ 292
6.850%, 08/01/07 250 295
West Covina, Civic Center Project (COP)
(MLO) (FSA)
5.250%, 09/01/07 250 263
West Covina, Redevelopment Agency, Community
Facilities District, Fashion Plaza (RB)
5.125%, 09/01/05 300 311
William S. Hart Joint School Financing Authority,
Callable 09/01/05 @ 102 (RB) (FSA)
6.100%, 09/01/06 200 224
----------
31,996
----------
PUERTO RICO--1.7%
Commonwealth of Puerto Rico (GO) (MBIA)
6.250%, 07/01/08 500 571
----------
TOTAL MUNICIPAL BONDS
(Cost $31,338) 32,567
----------
MONEY MARKET FUND--4.0%
Provident California Tax Free
Money Market 1,328,722 1,329
----------
TOTAL MONEY MARKET FUND
(Cost $1,329) 1,329
----------
TOTAL INVESTMENTS--101.8%
(Cost $32,667) 33,896
----------
OTHER ASSETS AND LIABILITIES, NET--(1.8%) (608)
----------
CALIFORNIA INTERMEDIATE TAX FREE FUND (CONCLUDED)
DESCRIPTION VALUE
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares--Institutional Class
($.0001 par value--2 billion authorized) based
on 3,317,702 outstanding shares $ 32,053
Portfolio Shares--Retail Class A
($.0001 par value--2 billion authorized) based
on 105 outstanding shares 1
Accumulated net realized gain on investments 5
Net unrealized appreciation of investments 1,229
----------
TOTAL NET ASSETS--100.0% $ 33,288
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--INSTITUTIONAL CLASS $ 10.03
----------
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE--RETAIL CLASS A $ 10.04
MAXIMUM SALES CHARGE OF 3.00% (1) 0.31
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 10.35
----------
(1) The offer price is calculated by dividing the net asset value by 1 minus the
maximum sales charge of 3.00%.
(A) Mandatory Put Security--the mandatory put date is shown as the maturity date
on the Statement of Net Assets.
(B) Pre-refunded Security--the pre-refunded date is shown as the maturity date
on the Statement of Net Assets.
(C) At September 30, 1997 the cost of securities purchased on a when-issued
basis was $705,000 for San Juan Joaquin Hills Transportation.
(D) Security sold within the terms of a private placement memorandum. This
security has been determined to be illiquid under guidelines established by
the Board of Directors.
AMBAC--American Municipal Bond Assurance Company
AMT--Alternative Minimum Tax
CGLI--Connecticut General Life Insurance
CMI--California Mortgage Insurance Program
COP--Certificates of Participation
FGIC--Financial Guaranty Insurance Corporation
FNMA--Federal National Mortgage Association
FSA--Financial Security Assurance
GO--General Obligation
LOC--Letter of Credit
MBIA--Municipal Bond Insurance Association
MLO--Municipal Lease Obligation
PN--Promissory Notes
RB--Revenue Bond
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
COLORADO INTERMEDIATE TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS--95.0%
COLORADO--95.0%
Adams & Arapahoe Counties, Joint School
District #28-J, Callable 12/01/06 @ 102
(GO) (FGIC)
5.750%, 12/01/07 $ 1,000 $ 1,090
Adams County, School District #12,
Callable 12/15/03 @ 100 (GO) (FGIC)
6.200%, 12/15/08 455 494
Adams County, School District #50 (GO)
5.125%, 12/01/00 1,000 1,026
Adams County, School District #50,
Callable 12/01/06 @ 100 (GO)
5.250%, 12/01/10 750 772
Arapahoe County, Cherry Creek School
District #5, Callable 12/15/00 @ 101 (GO)
6.800%, 12/15/01 1,000 1,086
Arapahoe County, Cherry Creek School District #5,
Callable 12/15/03 @ 100 (GO) (STAID)
5.250%, 12/15/04 500 520
Arapahoe County, Littleton School District #6,
Callable 12/01/06 @ 102 (GO) (STAID)
5.125%, 12/01/09 1,000 1,029
5.250%, 12/01/10 1,000 1,030
Aurora, Callable 12/01/04 @ 101 (COP) (MLO)
6.000%, 12/01/06 1,000 1,052
Aurora, Community College
Project (RB) (MLO) (CLE)
5.750%, 10/15/04 500 534
Boulder County, Sales & Use Tax (RB) (FGIC)
5.750%, 12/15/05 1,000 1,085
Boulder Valley, School District #R-2,
Callable 10/15/01 @ 100 (GO)
5.900%, 10/15/02 500 527
Boulder Valley, School District #R-2,
Callable 10/15/01 @ 100 (GO)
5.900%, 10/15/03 500 526
Boulder Valley, School District,
Callable 12/01/04 @ 101 (GO) (STAID)
5.950%, 12/01/07 1,000 1,076
Boulder, Larimer, & Weld Counties,
Vrain Valley School District,
Pre-refunded @ 101 (GO)
7.200%, 12/15/99 (B) 500 537
Boulder, Larimer, & Weld Counties,
Vrain Valley School District,
Callable 12/15/04 @ 100 (GO) (MBIA)
5.800%, 12/15/07 500 533
COLORADO INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Boulder, Urban Renewal 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 95 102
Broomfield, Callable 11/01/97 @ 101 (GO)
7.600%, 11/01/03 1,000 1,012
Centennial Water & Sanitation,
Series A (GO) (SWB)
4.750%, 12/01/97 500 501
Colorado Springs, Memorial Hospital,
Callable 12/15/05 @ 102 (RB) (MBIA)
6.000%, 12/15/15 500 530
Colorado Springs, Series A,
Callable 11/15/01 @ 102 (RB)
6.625%, 11/15/04 1,000 1,094
6.500%, 11/15/15 1,495 1,613
Colorado State Board of Agriculture,
Fort Lewis College (RB) (FGIC)
6.000%, 10/01/02 250 269
Colorado State Housing Finance Authority,
Multi Family Housing, Series A (RB) (FHA)
5.125%, 10/01/03 570 576
Colorado State Housing Finance Authority,
Single Family Mortgages, Series B-1 (RB) (AMT)
5.875%, 06/01/11 815 859
Colorado State Student Obligations
Board Authority (RB)
4.800%, 12/01/99 500 507
Colorado State Student Obligations
Board Authority, Series C (RB)
4.400%, 03/01/00 600 599
Colorado State Water Resource & Power
Development Authority (RB) (AMBAC)
5.500%, 09/01/04 1,000 1,064
Colorado State Water Resource & Power
Development Authority, Callable 09/01/02
@ 101 (RB) (FSA)
5.900%, 09/01/03 250 269
Colorado State Water Resource & Power
Development Authority, Clean Water Project,
Callable 09/01/02 @ 102 (RB)
5.800%, 09/01/06 1,000 1,074
Denver, City & County Airport, Series D
(RB) (MORG) (AMT)
4.250%, 11/15/25 (A) 500 500
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
COLORADO INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Denver, City & County Water, Callable
09/01/01 @ 100 (RB)
5.250%, 09/01/07 $ 500 $ 509
Douglas & Elbert Counties, School District #1,
Callable 12/15/04 @ 101 (GO) (MBIA) (STAID)
6.400%, 12/15/11 1,000 1,125
Eagle, Garfield, & Routt Counties, School
District #50-J, Callable 12/01/04 @ 102
(GO) (FGIC) (STAID)
6.125%, 12/01/09 1,290 1,406
El Paso County, School District #2
Harrison (GO)
7.050%, 12/01/04 1,000 1,146
El Paso County, School District #20
(COP) (MLO)
6.100%, 12/01/99 250 258
El Paso County, School District #20,
Series A (GO)
6.100%, 12/15/05 500 545
Fort Collins, Callable 12/01/02 @ 101 (GO)
6.400%, 12/01/09 575 617
Fort Collins, Wastewater, Callable
12/01/05 @ 100 (RB) (FGIC)
5.250%, 12/01/07 1,000 1,042
Garfield, Pitkin, & Eagle Counties,
School District #1 (GO) (MBIA)
6.000%, 12/15/04 1,000 1,095
Jefferson County, Industrial Development
Authority (RB)
6.625%, 09/01/01 250 270
Jefferson County, Metropolitan Y.M.C.A.,
Callable 08/01/04 @ 100 (RB)
7.500%, 08/01/08 1,000 1,093
Jefferson County, School District #R-1,
Callable 12/15/02 @ 101 (GO) (AMBAC) (STAID)
5.900%, 12/15/04 1,045 1,130
La Plata County, School District #9 Durango,
Callable 11/01/02 @ 101 (GO) (FGIC)
(STAID) 6.200%, 11/01/05 1,000 1,083
Larimer County, School District #R-1 Poudre (GO)
5.400%, 12/15/04 750 771
Larimer County, School District #R-1 Poudre,
Callable 12/15/02 @ 101 (GO) (MBIA)
6.150%, 12/15/16 1,000 1,055
Larimer, Weld, & Boulder Counties,
School District #R-2 Thompson,
Callable 12/15/04 @ 100 (GO)
5.900%, 12/15/06 1,000 1,063
COLORADO INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Louisville, Callable 06/01/98 @ 101 (GO) (FGIC)
7.200%, 12/01/04 $ 465 $ 478
Metex Metropolitan District, Series A (GO) (MBIA)
5.000%, 12/01/03 500 516
Metro Wastewater Reclamation District,
Series B (RB) (MBIA)
6.750%, 04/01/01 615 666
Moffat County, Pollution Control (RB) (AMBAC)
5.500%, 11/01/05 1,000 1,066
Platte River Power Authority, Series BB (RB)
5.500%, 06/01/02 500 528
Pueblo (GO) (MBIA)
6.000%, 05/01/00 500 523
Pueblo County, Single Family Mortgages,
Callable 11/01/04 @ 102 (RB) (FNMA/GNMA)
6.400%, 11/01/13 965 987
Pueblo, Urban Renewal Authority,
Callable 12/01/03 @ 101 (RB) (AMBAC)
5.800%, 12/01/09 840 895
Regional Transit District (RB)
5.750%, 11/01/01 1,500 1,584
South Suburban Park & Recreation
District (GO) (MBIA)
0.000%, 12/15/01 1,000 835
Stonegate Village Metropolitan District,
Callable 12/01/02 @ 100 (GO)
6.300%, 12/01/04 500 544
Summit County, School District #R-1,
Pre-refunded @ 100 (GO) (FGIC)
6.450%, 12/01/04 (B) 1,250 1,405
Thornton (GO) (FGIC)
5.600%, 12/01/02 1,000 1,061
Thornton, Callable 12/01/02 @ 101 (GO) (FGIC)
5.650%, 12/01/03 1,000 1,066
University of Colorado,
Callable 06/01/99 @ 101 (RB)
6.800%, 06/01/02 300 315
University of North Colorado, Facility Revenue
System, Callable 06/01/07 @ 100 (RB) (MBIA)
5.600%, 06/01/24 1,000 1,016
Weld County, School District #6,
Callable 12/01/07 @ 101 (GO)
5.000%, 12/01/08 1,000 1,016
Westminster, Sales & Use Tax,
Callable 12/01/07 @ 101 (RB) (FGIC)
5.250%, 12/01/11 500 509
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
COLORADO INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000)/SHARES VALUE (000)
- --------------------------------------------------------------------------------
Westminster, Sales & Use Tax,
Series B (RB) (FGIC)
6.250%, 12/01/05 $ 500 $ 559
Westminster, Water & Wastewater Utility
Enterprise, Callable 10/01/04 @ 100
(RB) (AMBAC)
5.800%, 12/01/05 1,000 1,079
----------
TOTAL MUNICIPAL BONDS
(Cost $52,941) 55,637
----------
MONEY MARKET FUND--3.3%
Federated Tax Free Money Market 1,938,056 1,938
----------
TOTAL MONEY MARKET FUND
(Cost $1,938) 1,938
----------
TOTAL INVESTMENTS--98.3%
(Cost $54,879) 57,575
----------
OTHER ASSETS AND LIABILITIES, NET--1.7% 990
----------
NET ASSETS:
Portfolio Shares--Institutional Class
($.0001 par value--2 billion authorized)
based on 5,126,395 outstanding shares 51,672
Portfolio Shares--Retail Class A
($.0001 par value-- billion authorized)
based on 394,652 outstanding shares 4,107
Accumulated net realized gain on investments 90
Net unrealized appreciation of investments 2,696
----------
TOTAL NET ASSETS--100.0% $ 58,565
----------
NET ASSET VALUE, OFFERING PRICE, AND
REDEMPTION PRICE PER SHARE--
INSTITUTIONAL CLASS $ 10.61
----------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE--RETAIL CLASS A $ 10.61
MAXIMUM SALES CHARGE OF 3.00% (1) 0.33
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 10.94
----------
COLORADO INTERMEDIATE TAX FREE FUND (CONCLUDED)
DESCRIPTION
- --------------------------------------------------------------------------------
(1) The offer price is calculated by dividing the net asset value by 1 minus the
maximum sales charge of 3.00%.
(A) Variable Rate Security--the rate reported on the Statement of Net Assets is
the rate in effect as of September 30, 1997. The date shown is the next
reset date.
(B) Pre-refunded Security--the pre-refunded date is shown as the maturity date
on the Statement of Net Assets.
AMBAC--American Municipal Bond Assurance Company
AMT--Alternative Minimum Tax
CLE--College Construction Loan Insurance Association
COP--Certificates of Participation
FGIC--Financial Guaranty Insurance Corporation
FHA--Federal Housing Authority
FNMA--Federal National Mortgage Association
FSA--Financial Security Assurance
GNMA--Government National Mortgage Association
GO--General Obligation
MBIA--Municipal Bond Insurance Association
MLO--Municipal Lease Obligation
MORG--Morgan Company
RB--Revenue Bond
STAID--State Aid Withholding
SWB--Swiss Bank
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
MINNESOTA INSURED INTERMEDIATE TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS--98.1%
MINNESOTA--97.9%
Anoka County, Capital Improvements,
Series C (GO)
5.550%, 02/01/05 $ 2,000 $ 2,075
Anoka County, Northern States Power,
Callable 12/01/99 @ 102 (GO)
6.850%, 12/01/01 1,000 1,074
Anoka County, Solid Waste Disposal
Project (GO) (CFC)
6.200%, 12/01/00 1,000 1,061
Anoka-Hennepin, School District #11,
Callable 02/01/03 @ 100 (GO) (FGIC)
4.875%, 02/01/07 3,300 3,333
Anoka-Hennepin, School District #11,
Series C (GO) (FGIC)
4.600%, 02/01/01 5,000 5,056
Bass Brook, Minnesota Power & Light,
Pollution Control (RB)
6.875%, 12/01/02 2,000 2,110
Becker, Pollution Control, Callable
04/01/99 @ 102 (RB)
6.800%, 04/01/07 3,900 4,120
Becker, Tax Increment, Series D,
Callable 08/01/04 @ 100 (GO) (AMT) (MBIA)
6.000%, 08/01/07 3,955 4,276
Bloomington, Mall of America Project,
Series A (GO) (FSA)
5.000%, 02/01/01 1,090 1,113
5.000%, 02/01/02 1,585 1,623
Bloomington, Mall of America Project,
Series A, Callable 02/01/04 @ 100 (RB)(FSA)
5.450%, 02/01/09 3,850 4,057
Bloomington, Port Authority, Callable
03/01/00 @ 100 (GO)
6.000%, 03/01/03 1,800 1,865
Chaska, First Mortgages, Multifamily
Housing, Callable 10/01/97 @ 102 (RB)
7.750%, 10/01/08 900 918
Coon Rapids, Multifamily Housing,
Woodland North Apartments, Callable
12/01/03 @ 100 (RB) (FHA)
5.625%, 12/01/09 460 469
Coon Rapids, Single Family Mortgages,
Callable 09/01/04 @ 102 (RB)
5.900%, 09/01/06 1,135 1,199
MINNESOTA INSURED INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Dakota County, Housing & Redevelopment
Authority, Callable 04/01/05 @ 102 (RB)
(AMT) (FNMA/GNMA)
6.000%, 10/01/14 $ 1,375 $ 1,384
Dakota County, Housing & Redevelopment
Authority, Single Family Mortgages,
Callable 04/01/04 @ 102 (RB) (AMT) (FNMA)
6.250%, 10/01/04 1,045 1,097
Dakota County, Housing & Redevelopment
Authority, Single Family Mortgages,
Callable 09/01/98 @ 103 (RB) (FHA/GNMA/VA)
7.250%, 03/01/06 540 545
Dakota County, Housing & Redevelopment
Authority (RB) (MLO)
4.800%, 02/01/01 1,045 1,058
4.950%, 02/01/02 1,000 1,019
Dakota County, Housing & Redevelopment
Authority, Callable 10/01/07 @ 101.5
(RB) (GNMA)
5.125%, 10/01/20 1,368 1,382
Dakota, Washington, & Stearns Counties, Housing
& Redevelopment Authority, Single Family
Mortgages, Callable 03/01/04 @ 102
(RB) (AMT) (FNMA)
6.500%, 09/01/10 775 822
Dakota, Washington, & Stearns Counties,
Housing & Redevelopment Authority, Single
Family Mortgages, Callable 03/01/04 @
102 (RB) (AMT) (FNMA)
6.000%, 09/01/04 510 537
Duluth, Economic Development Authority,
Health Care Facility, Callable 11/01/02
@ 102 (RB) (AMBAC)
6.100%, 11/01/04 650 709
Duluth, Economic Development Authority,
Health Care Facility, Escrowed to Maturity
(RB) (AMBAC)
6.100%, 11/01/04 250 274
Fridley, School District #14, Callable
02/01/05 @ 100 (GO) (FSA)
5.350%, 02/01/26 5,000 5,000
Hopkins, Independent School District #270,
Series A, Callable 02/01/03 @ 100 (GO) (MBIA)
4.800%, 02/01/05 2,000 2,012
Mankato County, Independent School
District #77, Series A, Callable 02/01/04
@ 100 (GO) (FSA)
5.100%, 02/01/07 1,000 1,021
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
MINNESOTA INSURED INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Minneapolis & St. Paul, Housing Finance Board,
Callable 11/01/04 @ 102 (RB) (AMT)
(FNMA/GNMA)
6.800%, 11/01/08 $ 1,275 $ 1,410
Minneapolis & St. Paul, Housing Finance Board,
Single Family Mortgages, Series A, Callable
06/01/99 @ 102 (RB)(AMT)(FHA/GNMA/VA)
7.875%, 12/01/12 340 346
Minneapolis & St. Paul, Housing & Redevelopment
Authority, Health One Obligated Group,
Callable 08/15/00 @ 102 (RB) (MBIA)
7.300%, 08/15/01 1,000 1,097
Minneapolis & St. Paul, Housing & Redevelopment
Authority, Health One Obligated Group, Series C,
Pre-refunded @ 102 (RB)
8.000%, 08/15/00 (B) 1,000 1,122
Minneapolis & St. Paul, Housing & Redevelopment
Authority, Healthspan, Series A, Callable 11/15/03
@ 102 (RB) (AMBAC)
5.000%, 11/15/07 2,000 2,020
5.000%, 11/15/13 2,000 1,954
Minneapolis & St. Paul, Housing Finance Board,
Single Family Mortgages, Phase VI, Series A,
Callable 08/01/98 @ 102 (RB)
7.700%, 08/01/00 160 166
Minneapolis & St. Paul, Metropolitan Airports
Commission, Series 10, Callable 01/01/03
@ 100 (RB)
5.000%, 01/01/05 1,000 1,014
Minneapolis & St. Paul, Metropolitan Airports
Commission, Series 7, Callable 01/01/99
@ 102 (RB) (AMT)
7.800%, 01/01/11 2,900 3,067
Minneapolis & St. Paul, Metropolitan Airports
Commission, Series 8 (RB) (AMT)
5.750%, 01/01/00 1,335 1,378
Minneapolis & St. Paul, Metropolitan Airports
Commission, Series 8, Callable
01/01/02 @ 100 (RB) (AMT)
6.100%, 01/01/03 1,500 1,592
6.350%, 01/01/04 2,500 2,669
Minneapolis, Abbott Northwestern,
Pre-refunded @ 102 (RB)
6.950%, 12/01/99 (B) 1,000 1,079
MINNESOTA INSURED INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Minneapolis, Callable 10/01/05 @ 100 (RB)
0.000%, 10/01/12 $ 2,950 $ 1,029
Minneapolis, Community Development Agency
(RB) (MBIA)
7.000%, 03/01/01 2,500 2,722
Minneapolis, Community Development Agency,
Recreational Facility Improvements (RB) (MBIA)
0.000%, 03/01/02 5,000 4,125
Minneapolis, Health Care Facilities Authority,
Fairview Hospital & Healthcare, Callable
11/15/03 @ 102 (RB) (MBIA)
5.100%, 11/15/05 1,000 1,026
Minneapolis, Health Care Facilities Authority,
Fairview Hospital & Healthcare,
Series A (RB) (MBIA)
4.800%, 11/15/02 1,000 1,014
Minneapolis, Hennepin Avenue, Series C,
Pre-refunded @ 100 (GO)
6.250%, 03/01/02 (B) 1,000 1,079
6.350%, 03/01/02 (B) 1,200 1,299
Minneapolis, Public Improvements,
Escrowed to Maturity (GO)
5.300%, 11/01/99 1,500 1,543
Minneapolis, Sales Tax,
Callable 04/01/02 @ 102 (RB)
6.150%, 10/01/05 2,400 2,601
Minneapolis, School District #1 (GO) (SDCP)
5.000%, 02/01/04 3,375 3,468
Minneapolis, School District #1
(RB) (MLO) (AMBAC)
5.300%, 02/01/02 1,000 1,031
Minneapolis, School District #1,
Callable 02/01/98 @ 100 (GO)
6.200%, 02/01/01 1,000 1,006
Minneapolis, School District #1, Series A,
Callable 02/01/06 @ 100 (COP) (MBIA) (MLO)
5.900%, 02/01/11 2,150 2,260
Minneapolis, School District #1, Series B,
Callable 02/01/03 @ 100 (COP) (MLO) (AMBAC)
5.400%, 02/01/04 2,000 2,070
Minneapolis, School District #1, Series B,
Callable 02/01/03 @ 100 (COP) (MLO)
(AMBAC)
5.500%, 02/01/05 2,000 2,075
Minneapolis, Series B,
Callable 09/01/05 @ 100 (GO)
5.050%, 03/01/06 6,000 6,210
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
MINNESOTA INSURED INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Minneapolis, Tax Increment,
Pre-refunded @ 100 (GO)
6.300%, 04/01/00 (B) $ 1,000 $ 1,054
Minnesota Agricultural & Economic Development
Board, Fairview Hospital Project (RB) (MBIA)
5.400%, 11/15/08 1,000 1,041
5.750%, 11/15/26 2,000 2,057
Minnesota Agricultural & Economic Development
Board, Fairview Hospital Project, Series A,
Callable 11/15/07 @ 102 (RB) (MBIA)
5.500%, 11/15/17 1,500 1,522
Minnesota Higher Education Facilities Authority,
University of St. Thomas, Series 3-C,
Pre-refunded @ 101 (RB)
7.125%, 09/01/00 (B) 2,095 2,289
Minnesota Public Facilities Authority, Water
Pollution Control, Series A,
Pre-refunded @ 102 (RB)
6.850%, 03/01/00 (B) 1,000 1,082
6.900%, 03/01/00 (B) 500 542
Minnesota Public Facilities Authority, Water
Pollution Control, Series B (RB)
6.050%, 03/01/00 1,000 1,044
Minnesota Public Facilities Authority, Water
Pollution Control, Series B,
Callable 03/01/01 @ 102 (RB)
6.250%, 03/01/02 500 539
6.350%, 03/01/03 500 540
Minnesota Public Facilities Authority, Water
Pollution Control, Series B,
Pre-refunded @ 102 (RB)
6.700%, 03/01/01 (B) 4,350 4,774
Minnesota State (GO)
5.000%, 04/01/03 1,000 1,037
Minnesota State, Callable 08/01/07 @ 100 (GO)
4.850%, 08/01/12 5,420 5,339
Minnesota State Housing Finance Agency,
Rental Housing, Series D (RB) (MBIA)
4.650%, 02/01/00 1,830 1,844
5.150%, 08/01/04 905 930
Minnesota State Housing Finance Agency,
Rental Housing, Series D, Callable
02/01/05 @ 102 (RB) (MBIA)
5.450%, 08/01/07 2,735 2,831
Minnesota State Housing Finance Agency,
Single Family Mortgages, Series C (RB) (FHA)
7.500%, 01/01/98 330 332
MINNESOTA INSURED INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Minnesota State Housing Finance Agency,
Single Family Mortgages, Series C,
Callable 01/01/01 @ 102 (RB) (FHA/VA)
6.600%, 07/01/02 $ 735 $ 778
Minnesota State Housing Finance Agency,
Single Family Mortgages, Series D (RB) (AMBAC)
4.500%, 07/01/01 2,000 2,018
Minnesota State Housing Finance Agency,
Single Family Mortgages, Series D,
Callable 01/01/04 @ 102 (RB) (AMBAC)
4.800%, 07/01/04 3,400 3,447
Minnesota State Housing Finance Agency,
Rental Housing, Series D (RB) (MBIA)
5.050%, 08/01/03 910 932
Minnesota State Housing Finance Agency, Single
Family Mortgages, Series C (RB) (FHA)
7.700%, 01/01/99 355 367
Minnesota State, Pre-refunded @ 100 (GO)
6.800%, 08/01/98 (B) 2,790 2,861
5.750%, 08/01/02 (B) 5,000 5,319
Minnesota State, Series A (RB) (AMBAC)
5.000%, 06/30/00 5,000 5,106
Minnesota State, Tax-Exempt Mortgage
Trust, Series C (RB) (MLO) (NN)
4.362%, 09/01/10 (A) 146 148
Northern Minnesota Municipal Power Agency,
Series A (RB) (AMBAC)
5.500%, 01/01/03 2,500 2,619
Northern Minnesota Municipal Power Agency,
Series A, Callable 01/01/03 @ 102 (RB) (AMBAC)
5.600%, 01/01/04 1,900 2,009
Northern Minnesota Municipal Power Agency,
Series A, Callable 01/01/05 @ 100 (RB) (AMBAC)
5.900%, 01/01/07 1,800 1,928
Northern Minnesota Municipal Power Agency,
Series A, Callable 01/01/99 @ 102 (RB) (AMBAC)
7.250%, 01/01/00 1,700 1,796
Northern Minnesota Municipal Power Agency,
Series A, Callable 01/01/99 @ 102 (RB) (MBIA)
7.300%, 01/01/01 3,835 4,051
Olmsted County, Housing & Redevelopment
Authority, Pre-refunded @ 100 (RB) (MLO)
7.000%, 02/01/01 3,025 3,290
Olmsted County, Resource Recovery, Series A,
Callable 02/01/02 @ 100 (RB)
5.800%, 02/01/04 1,850 1,949
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
MINNESOTA INSURED INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Osseo, Independent School District #279,
Callable 02/01/03 @ 100 (GO) (FGIC)
5.400%, 02/01/05 $ 2,525 $ 2,613
Osseo, Independent School District, Series A,
Callable 02/01/00 @ 100 (GO)
5.500%, 02/01/01 1,300 1,334
Pipestone, Industrial Development,
Cargill Project (RB)
5.000%, 09/01/00 1,890 1,933
Plymouth, Health Facilities, Callable
06/01/04 @ 102 (RB) (CGIC)
6.200%, 06/01/11 1,360 1,471
Ramsey & Washington Counties, Resource
Recovery, Northern State Power, Series A,
Callable 12/01/97 @ 103 (RB)
6.200%, 12/01/00 1,000 1,033
Red Wing, Independent School District #256,
Series A, Callable 02/01/03 @ 100 (GO)
5.250%, 02/01/05 1,010 1,039
Richfield, Independent School
District #280 (GO) (FGIC)
4.531%, 02/01/98 (A) 8,330 8,340
Robbinsdale, North Memorial Medical Center,
Series A (RB) (AMBAC)
5.100%, 05/15/03 1,000 1,036
Robbinsdale, North Memorial Medical Center,
Series A, Callable 05/15/03 @ 102 (RB) (AMBAC)
5.150%, 05/15/04 1,000 1,039
Robbinsdale, North Memorial Medical Center,
Series B (RB) (AMBAC)
5.000%, 05/15/02 1,250 1,286
5.100%, 05/15/03 1,000 1,036
Rochester, Independent School District #535,
Series A, Callable 02/01/00 @ 100 (GO)
5.600%, 02/01/03 1,500 1,543
Rochester, St. Mary's Hospital,
Escrowed to Maturity (RB)
5.750%, 10/01/07 3,000 3,169
Rosemount, Independent School District,
Series A, Callable 06/01/04 @ 100 (GO)
5.625%, 06/01/07 1,400 1,474
Savage, Public Improvements (GO) (FGIC)
5.200%, 02/01/05 1,000 1,041
Savage, Public Improvements,
Callable 02/01/06 @ 100 (GO) (FGIC)
5.350%, 02/01/07 1,000 1,045
5.500%, 02/01/08 1,000 1,051
MINNESOTA INSURED INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
South St. Paul, Housing & Redevelopment
Authority, Single Family Mortgages,
Callable 09/01/05 @ 100 (RB) (FNMA)
5.100%, 09/01/07 $ 1,135 $ 1,155
4.500%, 09/01/11 525 518
Southern Minnesota Municipal Power
Agency (RB) (MBIA)
0.000%, 01/01/20 3,500 1,050
Southern Minnesota Municipal Power Agency,
Callable 01/01/03 @ 102 (RB) (FGIC)
5.000%, 01/01/06 2,500 2,547
Southern Minnesota Municipal Power Agency,
Power Supply Systems, Series A (RB) (FGIC)
5.300%, 01/01/01 1,275 1,312
Southern Minnesota Municipal Power Agency,
Power Supply Systems, Series B,
Escrowed To Maturity (RB)
5.300%, 01/01/01 1,000 1,034
Southern Minnesota Municipal Power Agency,
Series A (RB) (MBIA)
0.000%, 01/01/21 5,000 1,429
Southern Minnesota Municipal Power Agency,
Series A, Escrowed to Maturity,
Callable 01/01/03 @ 102 (RB)
5.600%, 01/01/04 895 951
Southern Minnesota Municipal Power Agency,
Series B (RB) (MBIA)
4.850%, 01/01/07 1,875 1,882
Southern Minnesota Municipal Power Agency,
Power Supply Systems, Series A,
Escrowed To Maturity (RB)
5.300%, 01/01/01 725 749
St. Cloud, Hospital Facility, St. Cloud Hospital,
Series B, Pre-refunded @ 102 (GO) (AMBAC)
7.000%, 07/01/01 (B) 3,000 3,332
St. Cloud, Law Enforcement Center,
Callable 02/01/01 @ 100 (RB) (MLO)
5.750%, 02/01/02 1,000 1,035
St. Cloud, Water & Sewer, Series A (RB)
6.000%, 08/01/02 1,000 1,065
St. Louis Park, Health Care Facilities,
Callable 07/01/03 @ 102 (RB) (AMBAC)
4.600%, 07/01/05 (A) 6,000 5,985
St. Louis Park, Health Care Facilities,
Methodist Hospital, Series C,
Pre-refunded @ 102 (RB) (AMBAC)
7.150%, 07/01/00 (B) 1,240 1,361
7.250%, 07/01/00 (B) 3,500 3,844
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
MINNESOTA INSURED INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
St. Louis Park, Health Care Facilities, Methodist
Hospital, Series C, Pre-refunded @ 102
(RB) (AMBAC)
7.200%, 07/01/00 (B) $ 1,250 $ 1,373
St. Louis Park, Health Care Facilities, Minnesota
Health System, Series A, Escrowed to Maturity
(RB) (AMBAC)
4.300%, 07/01/00 2,000 2,003
St. Louis Park, Housing & Redevelopment
Authority, Single Family Mortgages,
Callable 04/20/03 @ 100 (RB) (GNMA)
6.500%, 10/20/03 416 439
St. Louis Park, Independent School
District #283, Callable 02/01/01 @ 100 (RB)
5.900%, 02/01/04 1,000 1,043
St. Paul, Housing & Redevelopment Authority,
Callable 03/01/05 @ 102 (RB) (FNMA)
6.125%, 03/01/17 1,210 1,236
St. Paul, Housing & Redevelopment Authority,
Civic Center Project (RB)
4.700%, 11/01/02 1,420 1,445
St. Paul, Housing & Redevelopment Authority,
Downtown & Seventh Place Project (RB) (AMBAC)
4.850%, 09/01/01 2,000 2,035
St. Paul, Housing & Redevelopment Authority,
Downtown & Seventh Place Project,
Callable 09/01/03 @ 101 (RB) (AMBAC)
5.200%, 09/01/04 4,000 4,140
St. Paul, Housing & Redevelopment Authority,
Downtown & Seventh Place Project,
Callable 09/01/04 @ 100 (RB) (AMBAC)
5.350%, 09/01/07 1,000 1,035
St. Paul, Housing & Redevelopment Authority,
Series A, Pre-refunded @ 102 (RB)
6.450%, 08/01/00 (B) 1,000 1,079
St. Paul, Housing & Redevelopment Authority,
St. Paul Heart & Lung Center, Mandatory
Put @ 100 (RB)
4.700%, 12/01/00 (C) 3,075 3,113
St. Paul, Independent School District #625,
Callable 01/01/00 @ 100 (COP) (MLO)
6.800%, 01/01/02 750 788
6.850%, 01/01/03 750 795
St. Paul, Independent School District #625,
Callable 02/01/04 @ 100 (GO)
5.800%, 02/01/07 1,000 1,063
MINNESOTA INSURED INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
St. Paul, Independent School District #625,
Series C (COP) (MLO)
5.850%, 02/01/07 $ 1,000 $ 1,054
St. Paul, Independent School District #625,
Series C (COP) (MLO) (FSA)
6.125%, 02/01/01 1,100 1,163
St. Paul, Independent School District #625,
Series C (RB) (FSA)
6.125%, 02/01/00 1,025 1,072
St. Paul, Port Authority Energy Package,
Tax Increment (RB) (FSA)
5.000%, 02/01/08 2,100 2,145
St. Paul, Port Authority Industrial Development,
Escrowed To Maturity (RB)
8.250%, 11/01/99 320 335
St. Paul, Science Museum, Escrowed
to Maturity (COP)
7.500%, 12/15/01 380 400
St. Paul, Series A, Callable 02/01/01 @ 100 (GO)
5.250%, 02/01/03 1,500 1,534
St. Paul, Sewer Revenue, Callable
06/01/03 @ 100 (RB) (AMBAC)
5.350%, 12/01/04 3,000 3,109
5.450%, 12/01/05 5,000 5,188
Stearns County, Housing & Redevelopment
Authority, Callable 02/01/99 @ 102
(RB) (MLO) (AMBAC)
6.750%, 02/01/04 1,665 1,748
Stillwater, Independent School District #834,
Callable 02/01/02 @ 100 (GO) (FGIC)
5.200%, 02/01/03 2,500 2,584
Vadnais Heights, Single Family Mortgages (RB)
5.500%, 11/01/04 1,005 1,038
6.000%, 11/01/09 580 609
5.600%, 05/01/10 160 164
Washington County, Housing & Redevelopment
Authority, Jail Facility (RB) (MLO)
6.400%, 02/01/00 1,000 1,050
5.000%, 02/01/03 2,755 2,841
Washington County, Housing & Redevelopment
Authority, Jail Facility, Callable 02/01/03
@ 100 (RB) (MBIA) (MLO)
5.400%, 02/01/08 1,580 1,621
Washington County, Housing & Redevelopment
Authority, Jail Facility, Escrowed To
Maturity (RB) (MLO)
6.500%, 02/01/01 1,000 1,071
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
MINNESOTA INSURED INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000)/SHARES VALUE (000)
- --------------------------------------------------------------------------------
Washington County, Housing & Redevelopment
Authority, Jail Facility, Pre-refunded @ 100
(RB) (MLO)
6.800%, 02/01/02 (B) $ 1,500 $ 1,648
Washington County, Raymie Johnson
Apartments, Series C (GO) (FGIC)
6.000%, 01/01/10 1,340 1,420
West St. Paul, Independent School
District #197 (GO) (MBIA)
0.000%, 02/01/99 930 881
0.000%, 02/01/05 2,000 1,423
Western Minnesota Municipal Power Agency,
Callable 01/01/03 @ 100 (RB) (AMBAC)
6.500%, 01/01/04 1,980 2,129
Western Minnesota Municipal Power Agency,
Series A, Callable 01/01/06 @ 102 (RB) (AMBAC)
5.500%, 01/01/13 2,000 2,079
Western Minnesota Municipal Power Agency,
Series B (RB) (AMBAC)
6.000%, 01/01/03 1,500 1,616
Willmar, Independent School
District #347 (GO) (SDCP)
4.950%, 02/01/06 1,000 1,010
Willmar, Independent School District #347,
Series C, Callable 02/01/02 @ 100 (GO) (AMBAC)
6.150%, 02/01/09 1,000 1,074
Willmar, Independent School District #347,
Callable 02/01/06 @ 100 (GO) (SDCP)
5.150%, 02/01/09 1,610 1,626
----------
298,047
----------
Puerto Rico--0.1%
Puerto Rico, Housing Finance Agency,
Single Family Mortgages, Portfolio 1,
Series B (RB) (GNMA)
6.800%, 10/15/99 280 294
----------
Virgin Islands--0.1%
Virgin Islands, Callable 10/01/03 @ 100
(RB) (GOVI)
7.750%, 10/01/06 390 429
----------
TOTAL MUNICIPAL BONDS
(Cost $288,160) 298,770
----------
Money Market Fund--0.8%
Federated Minnesota Municipal
Cash Trust 2,450,156 2,450
----------
TOTAL MONEY MARKET FUND
(Cost $2,450) 2,450
----------
MINNESOTA INSURED INTERMEDIATE TAX FREE FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--98.9%
(Cost $290,610) $ 301,220
----------
OTHER ASSETS AND LIABILITIES, NET--1.1% 3,355
----------
NET ASSETS:
Portfolio Shares--Institutional Class
($.0001 par value--2 billion authorized)
based on 29,528,389 outstanding shares 285,722
Portfolio Shares--Retail Class A
($.0001 par value--2 billion authorized)
based on 738,624 outstanding shares 7,287
Accumulated net realized gain on investments 956
Net unrealized appreciation of investments 10,610
----------
TOTAL NET ASSETS--100.0% $ 304,575
----------
NET ASSET VALUE, OFFERING PRICE, AND
REDEMPTION PRICE PER SHARE--
INSTITUTIONAL CLASS $ 10.06
----------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE--RETAIL CLASS A $ 10.09
MAXIMUM SALES CHARGE OF 3.00% (1) 0.31
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 10.40
----------
(1) The offer price is calculated by dividing the net asset value by 1 minus the
maximum sales charge of 3.00%.
(A) Variable Rate Security--the rate reported on the Statement of Net Assets is
the rate in effect as of September 30, 1997. The date shown is the next reset
date.
(B) Pre-refunded Security--the pre-refunded date is shown as the maturity date
on the Statement of Net Assets.
(C) Mandatory Put Security--the mandatory put date is shown as the maturity date
on the Statement of Net Assets.
AMBAC--American Municipal Bond Assurance Company
AMT--Alternative Minimum Tax
CFC--National Rural Utilities Cooperative Financing Corporation
CGIC--Capital Guaranty Insurance Company
COP--Certificate of Participation
FGIC--Federal Guaranty Insurance Corporation
FHA--Federal Housing Authority
FNMA--Federal National Mortgage Association
FSA--Financial Security Assurance
GNMA--Government National Mortgage Association
GO--General Obligation
GOVI--General Obligation of U.S. Virgin Islands
MBIA--Municipal Bond Insurance Association
MLO--Municipal Lease Obligation
NN--Northwestern National
RB--Revenue Bond
SDCP--School District Credit Program
VA--Veterans Administration
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
OREGON INTERMEDIATE TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS--98.9%
OREGON--98.1%
Albany, Linn, & Benton Counties (GO) (MBIA)
6.200%, 11/01/97 $ 345 $ 346
Albany, Linn, & Benton Counties, Callable 11/01/97
@ 100 (GO) (MBIA)
6.300%, 11/01/98 420 421
Albany, Sewer Revenue, Pre-refunded @ 100
(RB) (MBIA)
6.850%, 02/01/99 (A) 195 202
6.900%, 02/01/99 (A) 160 166
Baker County, Pollution Control Revenue (RB) (SBA)
5.850%, 07/01/01 300 307
5.950%, 07/01/02 315 323
6.050%, 07/01/03 335 343
Baker County, Pollution Control Revenue,
Callable 01/01/98 @ 102 (RB)
5.750%, 07/01/00 285 292
Bear Creek Valley, Sanitation Authority,
Callable 10/01/97 @ 100 (GO)
7.000%, 10/01/98 330 335
7.200%, 10/01/00 215 218
Beaverton (GO)
5.750%, 04/01/01 860 903
Beaverton, Limited Tax, Series B,
Callable 04/01/02 @ 100 (GO)
5.000%, 04/01/03 900 922
Beaverton, Pre-refunded @ 100 (GO)
6.500%, 06/01/98 (A) 305 311
Beaverton, Water Revenue, Callable 06/01/04
@ 101 (RB) (FSA)
6.125%, 06/01/14 1,000 1,076
Chemeketa, Community College,
Callable 06/01/06 @ 100 (GO) (FGIC)
5.650%, 06/01/09 1,000 1,071
Clackamas & Washington Counties, School
District #3, Callable 08/01/02 @ 100 (GO)
5.600%, 08/01/03 1,000 1,051
Clackamas & Washington Counties, School
District #3, Callable 10/01/02 @ 101 (GO)
5.650%, 10/01/05 235 249
Clackamas County, Health Facility Authority,
Series A, Callable 03/01/02 @ 102 (RB) (MBIA)
5.900%, 03/01/03 885 951
Clackamas County, Hospital Revenue, Sisters
Providence, Series A, Callable 04/01/02 @ 102 (RB)
6.200%, 10/01/02 680 739
OREGON INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Clackamas County, School District #12,
Callable 06/01/03 @ 101 (GO)
4.650%, 06/01/04 $ 750 $ 755
4.650%, 06/01/05 1,025 1,030
Clackamas County, School District #7 (GO)
6.600%, 06/15/99 500 522
5.200%, 06/15/04 600 628
Clackamas County, School District #7,
Pre-refunded @ 100 (GO)
6.900%, 06/15/00 (A) 605 650
Clackamas County, Service District #1,
Callable 10/01/97 @ 100 (GO)
6.600%, 10/01/99 370 374
Clackamas County, Service District #1, Sewer
Revenue, Callable 10/01/06 @ 100 (RB)
6.200%, 10/01/09 700 771
Columbia River, Peoples Utility District,
Callable 06/01/06 @ 100 (GO) (AMBAC)
4.375%, 06/01/07 1,245 1,191
Deschutes & Jefferson Counties, School
District #2 Redmond, Callable 06/01/03
@ 100 (GO) (MBIA)
5.400%, 06/01/05 1,000 1,046
Deschutes County, Callable 12/01/06
@ 100 (GO) (MBIA)
5.250%, 12/01/09 1,000 1,036
Douglas County, Hospital Facility Authority,
Catholic Health Series B, (RB) (MBIA)
5.500%, 11/15/04 505 538
Emerald Peoples Utility District (RB) (FGIC)
7.200%, 11/01/02 1,235 1,403
Emerald Peoples Utility District, Escrowed To
Maturity (RB) (AMBAC)
6.800%, 11/01/97 550 551
Emerald Peoples Utility District, Pre-refunded
@ 100 (RB) (AMBAC)
6.800%, 11/01/97 (A) 250 251
Emerald Peoples Utility District, Series B,
Escrowed To Maturity (RB) (AMBAC)
7.000%, 11/01/99 630 669
Eugene, Callable 12/01/97 @ 100.5 (COP)
(MLO) (MBIA)
6.400%, 06/01/98 400 404
Eugene, Electric Utility Revenue, Callable
10/31/97 @ 100 (RB)
6.650%, 09/01/00 1,200 1,215
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
OREGON INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Eugene, Public Improvements, Series P, Callable
10/01/00 @ 100 (GO)
5.600%, 10/01/04 $ 165 $ 169
Eugene, Public Safety Facilities, Callable 06/01/06
@ 100 (GO) (FGIC)
5.700%, 06/01/16 1,295 1,342
Eugene, Water Revenue Utility, Series 1986,
Pre-refunded @ 101.5 (RB)
6.100%, 12/01/97 (A) 175 179
6.200%, 12/01/97 (A) 295 302
Grants Pass, Callable 06/01/98 @ 100
(GO) (AMBAC)
5.850%, 06/01/00 1,000 1,011
Gresham, Sewer Revenue (RB)
4.950%, 06/01/02 615 635
Gresham, Sewer Revenue, Callable 06/01/02
@ 102 (RB)
5.250%, 06/01/05 500 522
Jackson County, School District # 549C (GO) (FSA)
6.000%, 06/01/05 1,125 1,235
Josephine County, School District #7 (GO) (FGIC)
5.750%, 06/01/06 1,525 1,660
Lake Oswego, Pre-refunded @ 100 (GO)
6.300%, 02/01/99 (A) 270 278
Lane County Community College (GO)
5.000%, 06/01/01 1,000 1,031
5.200%, 06/01/02 2,300 2,401
Lane County, Metropolitan Waste
Water Service (GO)
5.100%, 09/01/00 660 677
Lane County, School District #4J (COP) (MLO)
6.650%, 10/01/97 345 345
Lane County, School District #4J, Series A (GO)
4.900%, 07/01/02 1,000 1,025
Lincoln City, Callable 01/01/98 @ 100
(GO) (AMBAC)
5.750%, 07/01/01 500 500
Lincoln City, School District (GO) (FGIC)
5.500%, 06/15/04 2,095 2,244
Lincoln City, Series A, Callable 02/01/98 @
100 (GO) (AMBAC)
5.000%, 02/01/03 305 312
Lincoln County, School District (GO) (FGIC)
6.000%, 06/15/06 1,055 1,176
Marion & Polk Counties, School District #24-J,
Callable 10/01/03 @ 101 (GO)
4.500%, 10/01/05 1,500 1,500
OREGON INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Marion & Polk Counties, School District #24-J,
Pre-refunded @ 100 (GO)
5.600%, 10/01/02 (A) $ 785 $ 833
5.700%, 10/01/02 (A) 660 704
5.800%, 10/01/02 (A) 815 872
Marion County, Office Building Facility (COP) (MLO)
10.000%, 05/01/05 400 406
Marion County, School District #7-J, Callable
06/01/04 @ 101 (GO) (FSA)
5.600%, 06/01/06 860 919
Marion County, Solid Waste & Electric Revenue,
Ogden Martin System Project (RB) (AMBAC)
5.000%, 10/01/99 2,000 2,040
5.100%, 10/01/02 1,000 1,039
5.500%, 10/01/06 1,400 1,501
Medford, Hospital Facilities Authority (RB) (MBIA)
6.300%, 12/01/99 400 419
Medford, Hospital Facilities Authority, Callable
12/01/00 @ 102 (RB) (MBIA)
6.600%, 12/01/03 300 325
Metropolitan Service District, Pre-refunded
@ 100 (GO)
7.650%, 12/01/97 (A) 1,000 1,006
Metropolitan Open Spaces Program,
Series A (GO)
5.250%, 09/01/01 2,495 2,592
Metropolitan Open Spaces Program, Series A,
Callable 09/01/03 @ 102 (GO)
5.000%, 09/01/04 1,275 1,308
Metropolitan Open Spaces Program, Series C,
Callable 09/01/03 @ 102 (GO)
5.250%, 09/01/13 1,000 1,011
Metropolitan Service District, Oregon Convention
Center, Callable 01/01/00 @ 102 (GO)
6.000%, 07/01/02 1,300 1,370
Metropolitan Service District, Oregon Convention
Center, Pre-refunded @ 100 (GO)
7.000%, 12/01/97 (A) 325 327
Metropolitan Service District, Oregon Convention
Center, Series A, Callable 01/01/00 @ 102 (GO)
5.750%, 07/01/00 1,100 1,145
6.250%, 01/01/13 500 524
Metropolitan Service District, Oregon
Waste Disposal (RB)
6.850%, 07/01/99 540 568
Metropolitan Service District, Oregon Waste
Disposal, Continuously Callable (RB)
6.950%, 01/01/00 935 999
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
OREGON INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Metropolitan, Washington Park Zoo, Series A (GO)
5.000%, 01/15/02 $ 1,040 $ 1,070
5.000%, 01/15/03 1,095 1,129
Metropolitan, Washington Park Zoo, Series A (GO)
6.000%, 01/15/05 1,215 1,324
Metropolitan, Washington Park Zoo, Series A,
Callable 01/15/07 @ 100 (GO)
5.250%, 01/15/10 1,000 1,021
Morrow County (GO) (MBIA)
5.500%, 06/01/04 795 845
5.500%, 06/01/05 835 888
Multnomah County, Health Facilities Lease,
Series A, Callable 07/01/03 @ 101 (COP) (MLO)
5.100%, 07/01/04 925 959
Multnomah County, Juvenile Justice Project,
Series A, Callable 08/01/02 @ 101 (COP) (MLO)
5.700%, 08/01/03 675 719
Multnomah County, School District #1,
Callable 12/15/97 @ 100 (GO)
6.300%, 12/15/99 1,025 1,030
6.500%, 12/15/00 1,470 1,478
Multnomah County, School District #1-J (GO)
4.500%, 06/01/01 1,000 1,012
4.250%, 06/01/03 1,500 1,498
Multnomah County, School District #1-J,
Callable 12/15/97 @ 100 (GO)
6.700%, 12/15/02 500 503
6.750%, 12/15/03 1,165 1,171
Multnomah County, School District #1-J,
Series A, Callable 10/29/97 @ 100 (COP) (MLO)
6.500%, 12/15/97 400 402
Multnomah County, School District #1-J, Series A,
Callable 10/31/97 @ 100 (COP) (MLO)
6.500%, 12/15/98 1,225 1,232
Multnomah County, School District #1-J, Series B,
Callable 10/31/97 @ 100 (COP) (MLO)
6.500%, 12/15/97 400 402
6.600%, 12/15/98 1,000 1,006
Multnomah County, School District #3,
Callable 12/01/05 @ 100 (GO) (FGIC)
5.600%, 12/01/07 780 832
Multnomah County, School District #4 (GO)
5.500%, 01/01/02 910 959
Multnomah County, School District #4,
Callable 01/01/02 @ 100 (GO)
5.800%, 01/01/04 1,400 1,480
Multnomah County, School District #40 (GO)
5.250%, 06/01/04 1,000 1,041
OREGON INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Multnomah County, School District #7
(GO) (AMBAC)
5.875%, 06/01/02 $ 1,000 $ 1,075
5.500%, 06/01/06 1,000 1,074
Northern Wasco County, Hydroelectric Utility,
McNary Dam Fishway Project, Callable
12/01/03 @ 102 (RB)
4.750%, 12/01/06 470 472
Oregon State (GO)
6.000%, 08/01/02 2,100 2,252
6.000%, 02/01/03 1,000 1,074
Oregon State, Pollution Control, Series C,
Callable 06/01/03 @ 100 (GO)
5.625%, 06/01/13 1,045 1,055
Oregon State, Administrative Services,
Callable 11/01/05 @ 101 (COP) (MLO) (MBIA)
5.000%, 11/01/06 1,350 1,396
Oregon State, Alternative Energy, Private Act,
Callable 07/01/04 @ 100 (GO)
5.300%, 07/01/05 900 941
Oregon State, Board of Higher Education,
Equipment Finance (COP) (BIG)
6.700%, 10/01/97 1,190 1,190
Oregon State, Board of Higher Education,
Series B, Callable 10/15/02 @ 100 (GO)
6.250%, 10/15/12 1,375 1,473
Oregon State, Department of Administrative
Services, Series A (COP) (MLO) (MBIA)
5.375%, 11/01/02 3,000 3,154
Oregon State, Department of Administrative
Services, Series C (COP) (MLO) (MBIA)
4.800%, 05/01/02 1,145 1,171
Oregon State, Department of Administrative
Services, Series C, Callable 05/01/06 @ 101
(COP) (MLO) (MBIA)
5.750%, 05/01/07 1,635 1,780
Oregon State, Department of General Services,
Series E (COP) (MLO) (AMBAC)
6.800%, 09/01/99 1,050 1,105
Oregon State, Department of General Services,
Series F (COP) (MLO) (AMBAC)
6.800%, 09/01/99 1,000 1,053
Oregon State, Department of Transportation,
Regional Light Rail Fund, Callable 06/01/04
@ 102 (RB) (MBIA)
6.000%, 06/01/05 2,000 2,203
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
OREGON INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Oregon State, Economic Development
Department (RB)
4.650%, 01/01/02 $ 355 $ 355
Oregon State, Economic Development Department,
Callable 01/01/02 @ 102 (RB)
4.850%, 01/01/04 555 556
Oregon State, Economic Development Department,
Series A, Callable 01/01/06 @ 102 (RB) (MBIA)
5.000%, 01/01/11 500 503
Oregon State, Equipment Finance Program,
Series I (COP) (MLO) (MBIA)
5.050%, 11/01/99 735 752
Oregon State, Fair & Exposition Center,
Callable 10/01/01 @ 103 (RB)
5.400%, 10/01/06 1,010 1,066
Oregon State, Health Housing Educational &
Cultural Facilities (RB) (MBIA)
5.250%, 10/01/02 550 575
Oregon State, Health Housing Educational &
Cultural Facilities, Lewis & Clark College (RB) (MBIA)
5.300%, 10/01/03 630 662
Oregon State, Health Housing Educational &
Cultural Facilities, George Fox University,
Series A, Callable 03/01/07 @ 102 (RB)
5.400%, 03/01/09 395 408
5.450%, 03/01/10 415 427
Oregon State, Health Housing, Reed College,
Series A, Callable 07/01/06 @ 102 (RB)
5.375%, 07/01/15 2,000 2,000
Oregon State, Housing & Community Services
(COP) (MLO) (FHA)
5.900%, 07/01/99 615 630
Oregon State, Housing & Community Services,
Callable 07/01/03 @ 102 (RB)
5.750%, 07/01/12 1,500 1,558
Oregon State, Housing & Community Services,
Series A, Continuously Callable (RB)
6.400%, 07/01/18 1,325 1,400
Oregon State, Housing & Community Services,
Single Family Mortgages, Callable 07/01/01
@ 102 (GO)
6.400%, 07/01/05 605 638
Oregon State, Housing & Community Services,
Single Family Mortgages, Series A,
Callable 07/01/03 @ 102 (RB)
4.900%, 07/01/05 1,075 1,086
OREGON INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Oregon State, Housing & Community Services,
Single Family Mortgages, Series A,
Callable 07/01/06 @ 102 (RB)
6.000%, 07/01/16 $ 1,200 $ 1,260
Oregon State, Housing & Community Services,
Single Family Mortgages, Series B,
Callable 07/01/03 @ 102 (RB)
5.100%, 07/01/07 480 493
Oregon State, Pollution Control, Callable
11/01/07 @ 100 (GO)
4.875%, 11/01/11 455 449
Oregon State, Veterans Welfare (GO)
7.800%, 01/01/99 350 366
Polk, Marion & Benton Counties, School
District #13-J (GO) (FGIC)
5.500%, 12/01/03 955 1,023
Polk, Marion & Benton Counties, School
District #13-J, Callable 12/01/04 @ 101 (GO) (FGIC)
5.500%, 12/01/05 570 611
Port Astoria, Pre-refunded @ 100 (GO) (MBIA)
6.000%, 02/01/99 (A) 370 380
Port Morrow, Pollution Control, Pre-refunded
@ 100 (RB)
6.375%, 04/01/02 (A) 1,050 1,142
Port Portland, International Airport,
Series 7A (RB) (MBIA)
6.125%, 07/01/00 800 844
6.200%, 07/01/01 500 536
6.500%, 07/01/04 500 541
Port Portland, International Airport, Series 9A,
Callable 07/01/01 @ 102 (RB) (FGIC)
5.400%, 07/01/04 1,775 1,866
Port Portland, Series A (GO)
4.200%, 03/01/02 1,000 994
4.500%, 03/01/06 1,000 988
Port Portland, Unlimited Tax, Series A (GO)
4.300%, 03/01/03 1,005 999
Port Umpqua, Pollution Control, International
Paper Project, Series A, Callable 10/31/97
@ 102 (RB)
6.600%, 03/15/05 1,000 1,023
Portland, Community College District, Series A,
Callable 07/01/02 @ 100 (GO)
6.000%, 07/01/12 1,500 1,573
Portland, Housing Authority, Riverwood Project,
Callable 01/01/06 @ 100 (RB)
6.000%, 01/01/11 1,170 1,245
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
OREGON INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Portland, Parking Revenue, Callable
10/01/00 @ 100 (RB)
6.300%, 10/01/06 $ 435 $ 456
6.350%, 10/01/07 465 487
Portland, Pre-refunded @ 102 (GO)
6.600%, 10/01/98 (A) 565 592
Portland, Series A (COP) (MLO)
6.950%, 04/01/99 500 521
Portland, Series A, Pre-refunded @ 100
(COP) (MLO)
7.200%, 04/01/99 (A) 1,725 1,807
Portland, Series C, Callable 12/01/97 @ 100 (GO)
5.500%, 12/01/00 250 250
Portland, Sewer Systems Revenue,
Callable 06/01/07 @ 100 (RB) (FGIC)
5.000%, 06/01/09 2,250 2,284
Portland, Sewer Systems Revenue,
Pre-refunded @ 101 (RB)
6.150%, 06/01/04 (A) 1,000 1,106
Portland, Sewer Systems Revenue,
Series A (RB) (MBIA)
5.125%, 06/01/01 1,290 1,335
Portland, Sewer Systems Revenue,
Series A (RB)
5.550%, 06/01/04 1,085 1,147
Portland, Sewer Systems Revenue, Series B,
Callable 04/01/02 @ 102 (RB)
5.500%, 04/01/04 600 638
Salem (GO)
6.750%, 11/01/98 600 619
Salem, Education Facilities, Willamette University (RB)
5.500%, 04/01/04 500 526
Salem, Education Facilities, Willamette University,
Callable 04/01/04 @ 101 (RB)
5.700%, 04/01/05 500 534
Salem, Series A, Callable 01/01/01 @ 101 (GO)
5.600%, 01/01/03 1,410 1,461
Salem, Water & Sewer Revenue (RB) (MBIA)
6.000%, 06/01/06 1,135 1,258
Tri-County Metropolitan, Transit Improvements,
Callable 07/01/02 @ 101 (GO)
5.700%, 07/01/04 1,450 1,550
Tri-County Metropolitan, Transportation District,
Series A, Callable 07/01/02 @ 101 (GO)
5.600%, 07/01/03 2,000 2,100
5.800%, 07/01/05 1,310 1,402
OREGON INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Tri-County Metropolitan, Transportation District,
Series A, Callable 08/01/02 @ 101 (RB)
5.450%, 08/01/04 $ 1,000 $ 1,055
Tri-County Service District (GO)
5.000%, 09/01/02 1,570 1,619
Tualatin Valley Water District, Wolf Creek,
Series A, Callable 12/01/03 @ 100 (GO)
4.700%, 12/01/04 1,140 1,167
Washington & Clackamas Counties, School
District #23-J (GO) (FGIC)
5.750%, 06/01/06 1,055 1,151
Washington & Clackamas Counties, School
District #23-J, Pre-refunded @ 100 (GO)
6.625%, 01/01/00 (A) 435 459
Washington County (GO)
5.850%, 12/01/01 685 729
Washington County, Criminal Justice Facilities,
Callable 12/01/04 @ 100 (GO)
5.625%, 12/01/05 850 912
6.000%, 12/01/13 1,000 1,058
Washington County, School District #15,
Callable 06/01/04 @ 101 (GO) (FGIC)
5.800%, 06/01/06 575 623
Washington County, School District #3 (GO) (MBIA)
5.750%, 11/01/04 800 870
Washington County, School District #48-J (GO)
6.700%, 06/01/98 320 326
5.900%, 09/01/01 1,065 1,130
Washington County, School District #48-J,
Series B, Callable 06/01/00 @ 100 (GO)
5.700%, 06/01/02 780 809
Washington County, School District #48-J,
Series C, Pre-refunded @ 100 (GO)
5.300%, 09/01/99 (A) 830 851
Washington County, School District #88-J,
Callable 06/01/05 @ 100 (GO) (FSA)
5.700%, 06/01/06 1,000 1,080
Washington County, Unified Sewerage
Agency (RB) (AMBAC)
5.500%, 10/01/02 1,000 1,059
Washington County, Unified Sewerage Agency,
Callable 10/01/06 @ 101 (RB) (FGIC)
5.200%, 10/01/09 1,300 1,350
Washington County, Unified Sewerage Agency,
Pre-refunded @ 100 (RB) (AMBAC)
6.800%, 11/01/99 (A) 300 317
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
OREGON INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000)/SHARES VALUE (000)
- --------------------------------------------------------------------------------
Washington County, Unified Sewerage Agency,
Series 1 (RB) (AMBAC)
5.700%, 10/01/04 $ 1,250 $ 1,347
Washington County, Unified Sewerage Agency,
Series 1, Callable 10/01/04 @ 100 (RB) (AMBAC)
5.800%, 10/01/05 2,000 2,170
Wilsonville, Callable 01/01/98 @ 100 (GO)
6.900%, 01/01/99 175 176
7.000%, 01/01/00 190 191
7.100%, 01/01/01 200 201
7.200%, 01/01/02 215 216
7.300%, 01/01/03 235 236
Wolf Creek, Highway Water District,
Pre-refunded @ 100 (GO)
6.750%, 12/01/98 (A) 410 424
Yamhill County, School District #29-J,
Callable 06/01/04 @ 101 (GO) (FSA)
5.600%, 06/01/06 630 672
Yamhill County, School District #29-J,
Pre-refunded @ 100 (GO)
6.500%, 02/01/99 (A) 465 480
Yamhill County, School District #40 (GO) (FGIC)
6.000%, 06/01/08 600 667
----------
178,548
----------
PUERTO RICO--0.8%
Commonwealth of Puerto Rico (GO) (MBIA)
6.250%, 07/01/08 1,250 1,428
----------
TOTAL MUNICIPAL BONDS
(Cost $173,905) 179,976
----------
MONEY MARKET FUND--0.0%
Federated Tax Free Money Market 1,561 2
----------
TOTAL MONEY MARKET FUND
(Cost $2) 2
----------
TOTAL INVESTMENTS--98.9%
(Cost $173,907) 179,978
----------
OTHER ASSETS AND LIABILITIES, NET--1.1% 2,091
----------
OREGON INTERMEDIATE TAX FREE FUND (CONCLUDED)
DESCRIPTION VALUE
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares--Institutional Class
($.0001 par value--2 billion authorized) based on
18,120,305 outstanding shares $ 175,815
Accumulated net realized gain on investments 183
Net unrealized appreciation of investments 6,071
----------
TOTAL NET ASSETS--100.0% $ 182,069
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--INSTITUTIONAL CLASS $ 10.05
----------
(A) Pre-refunded Security--the pre-refunded date is shown as the maturity date
on the Statement of Net Assets.
AMBAC--American Municipal Bond Assurance Company
BIG--Bond Investors Guaranty Insurance Company
COP--Certificate of Participation
FGIC--Financial Guaranty Insurance Corporation
FHA--Federal Housing Authority
FSA--Financial Security Assurance
GO--General Obligation
MBIA--Municipal Bond Insurance Association
MLO--Municipal Lease Obligation
RB--Revenue Bond
SBA--Small Business Administration
<PAGE>
INTERMEDIATE TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS--96.6%
ALABAMA--1.1%
Alabama State, Docks Department Revenue
Authority (RB) (MBIA)
5.250%, 10/01/10 (C) $ 3,000 $ 3,011
Jefferson County, Series A (RB) (FGIC)
5.375%, 02/01/06 1,500 1,579
----------
4,590
----------
ALASKA--3.6%
Alaska State Housing Finance Authority, Series C
(GO) (SWB)
3.685%, 10/01/97 (A) 1,500 1,500
Alaska State Housing Finance Authority (GO)
5.900%, 12/01/04 700 738
Alaska State Housing Finance Authority
(GO) (MBIA)
4.950%, 12/01/02 1,000 1,024
5.350%, 06/01/06 1,000 1,037
Alaska State Housing Finance Authority,
Callable 06/01/04 @ 102 (GO)
5.400%, 12/01/23 3,000 2,936
Alaska State Housing Finance Authority,
Callable 12/01/05 @ 102 (GO) (MBIA)
5.400%, 12/01/08 2,000 2,067
Alaska State Industrial Development Authority,
Callable 04/01/03 @ 102 (GO)
5.950%, 04/01/06 995 1,061
Anchorage (GO) (FGIC)
6.000%, 10/01/06 2,250 2,475
Anchorage, Electric Utility (RB) (MBIA)
5.500%, 12/01/02 700 736
Anchorage, Electric Utility,
Callable 06/01/99 @ 102 (RB) (MBIA)
7.125%, 06/01/06 1,000 1,064
Anchorage, Port & Terminal Facilities (RB) (MBIA)
6.000%, 02/01/01 990 1,042
----------
15,680
----------
ARIZONA--4.0%
Arizona State, Educational Loan Marketing
(GO) (MBIA)
6.850%, 09/01/99 500 523
Arizona State, Transportation Board Highway,
Pre-refunded @ 101 (RB)
6.900%, 07/01/00 (B) 300 325
Maricopa County, School District (GO) (FSA)
5.250%, 07/01/04 4,000 4,180
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Maricopa County, School District #41,
Pre-refunded @ 101 (GO) (FGIC)
6.800%, 07/01/99 (B) $ 1,000 $ 1,057
7.000%, 07/01/99 (B) 1,000 1,060
Maricopa County, Unified School
District #69 (MBIA)
5.300%, 07/01/11 1,000 1,037
Maricopa County, School District #11,
Series A, Callable 07/01/07 @ 101 (GO) (AMBAC)
5.000%, 07/01/10 3,000 3,037
Phoenix, Callable 07/01/07 @ 102 (GO)
5.000%, 07/01/09 1,300 1,321
Pima County (GO)
6.000%, 07/01/02 800 856
Tempe, Unified School District #213,
Series C (GO) (MBIA)
4.000%, 07/01/12 2,060 1,817
University of Arizona, Pre-refunded @ 102 (RB)
6.900%, 06/01/00 (B) 2,000 2,180
----------
17,393
----------
ARKANSAS--0.1%
Arkansas State College, Series B (GO)
6.100%, 06/01/99 500 516
----------
CALIFORNIA--3.9%
Azusa, Redevelopment Agency, Single Family
Mortgages, Escrowed To Maturity, Series A
(RB) (FNMA)
6.400%, 10/01/02 1,000 1,085
Bakersfield, Convention Center Expansion,
Callable 04/01/07 @ 101 (COP) (MLO) (MBIA)
5.400%, 04/01/09 1,000 1,047
California State, Educational Facilities Authority,
Series N, Callable 12/01/07 @ 101 (RB)
5.350%, 06/01/27 3,000 3,007
California State, Health Facilities Authority,
Callable 10/01/98 @ 102 (RB) (CMI)
7.250%, 10/01/99 500 525
California State, Public Improvements
(GO) (AMBAC)
8.000%, 05/01/03 4,000 4,720
Orange County, Transportation Authority,
Callable 02/15/02 @ 102 (RB)
5.700%, 02/15/03 200 212
Orange County, Transportation Authority,
Callable 02/15/02 @ 102 (RB)
5.750%, 02/15/04 1,000 1,064
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Rio Linda, Unified School District,
Callable 08/01/08 @ 100 (GO) (FSA)
5.200%, 08/01/11 $ 1,000 $ 1,020
San Jose, Apartment Revenue,
Callable 03/01/03 @ 102 (RB) (MBIA)
6.100%, 03/01/06 1,000 1,095
Tri-city Hospital District, Series B (RB) (MBIA)
5.750%, 02/15/03 2,870 3,057
----------
16,832
----------
COLORADO--3.0%
Arapahoe County, Greenwood Metropolitan District,
Callable 12/01/02 @ 100 (RB) (FSA)
7.300%, 12/01/06 2,000 2,260
Arapahoe County, Greenwood Metropolitan District,
Callable 12/01/02 @ 100 (RB) (MBIA)
7.250%, 12/01/06 1,500 1,691
Arvada, Sales & Use Tax, Callable 12/01/02 @ 100
(RB) (FGIC)
5.900%, 12/01/05 1,000 1,059
Boulder, Larimer, & Weld Counties,
Vrain Valley School District #R-1,
Callable 12/15/04 @ 100 (GO) (MBIA)
5.600%, 12/15/05 1,000 1,062
Boulder, Sales & Use Tax,
Callable 08/15/01 @ 100 (RB)
7.200%, 08/15/13 500 529
Colorado Springs, Series A (RB)
6.350%, 11/15/01 1,000 1,076
Colorado State, Housing Finance Authority,
Single Family Mortgages,
Callable 08/01/99 @ 102 (RB) (FHA/VA)
7.400%, 08/01/09 570 593
Colorado State, Housing Finance Authority,
Series A-2, Callable 05/01/06 @ 105 (RB)
7.150%, 11/01/14 1,495 1,683
Golden, Water Utility Improvements,
Callable 05/08/97 @ 101 (RB)
6.800%, 11/15/97 50 50
Greeley, Sales & Use Tax, Callable
02/01/98 @ 100 (RB) (MBIA)
6.000%, 08/01/99 400 403
Jefferson County, Callable 12/01/04 @ 100
(COP) (MLO) (MBIA)
6.650%, 12/01/08 500 556
Summit County, School District #1 (GO) (FGIC)
0.000%, 12/01/03 1,325 1,004
University of Colorado,
Callable 05/05/97 @ 100 (RB)
7.625%, 06/01/06 25 25
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Westminster, Water & Waste Water Utility
Improvements, Callable 12/01/04 @ 100
(RB) (AMBAC)
6.000%, 12/01/09 $ 1,000 $ 1,079
----------
13,070
----------
DELAWARE--1.2%
Delaware State, Callable 04/01/01 @ 102 (GO)
6.350%, 04/01/03 1,000 1,081
6.250%, 04/01/02 1,000 1,080
Delaware State, Transportation System Authority,
Callable 07/01/98 @ 101.5 (RB)
7.500%, 07/01/02 1,000 1,038
New Castle County, Callable 10/01/03 @ 102 (GO)
5.300%, 10/01/05 2,000 2,090
----------
5,289
----------
DISTRICT OF COLUMBIA--0.8%
District of Columbia, Series A,
Callable 06/01/00 @ 102 (GO) (MBIA)
6.300%, 06/01/01 500 529
District of Columbia, University Project, Series A,
Callable 04/01/99 @ 102 (RB)
7.375%, 04/01/08 2,525 2,683
----------
3,212
----------
FLORIDA--1.6%
Dade County, Series I (GO) (AMBAC)
6.900%, 07/01/04 5,125 5,849
Jacksonville, Electric Authority,
Callable 10/01/97 @ 101.5 (RB)
7.400%, 10/01/01 1,000 1,028
----------
6,877
----------
GEORGIA--0.1%
De Kalb County, Single Family Mortgages,
Callable 08/01/03 @ 100 (RB) (AMT) (GNMA)
7.400%, 02/01/14 405 430
----------
HAWAII--2.0%
Hawaii County, Public Improvements,
Pre-refunded @ 101 (RB) (FGIC)
7.100%, 06/01/00 (B) 1,000 1,087
Hawaii State (GO) (FGIC)
6.000%, 03/01/05 3,000 3,270
Hawaii State, Public Improvements,
Pre-refunded @ 100 (GO)
6.900%, 06/01/00 (B) 1,000 1,074
Hawaii State, Series B (GO)
5.750%, 03/01/00 1,000 1,035
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Hawaii State, Series C (GO)
5.125%, 02/01/09 $ 1,000 $ 1,021
Honolulu, Hawaii City & County Public
Improvements, Pre-refunded @ 101 (GO)
6.950%, 06/01/00 (B) 1,000 1,084
----------
8,571
----------
IDAHO--0.7%
Ada & Canyon Counties, Joint School District #2,
Callable 07/30/07 @ 100 (GO)
5.500%, 07/30/10 1,000 1,052
5.500%, 07/30/11 1,000 1,049
Nampa, Idaho Urban Renewal Tax Increment,
Series B (RB) (AMBAC)
4.400%, 08/01/04 1,000 996
----------
3,097
----------
ILLINOIS--5.9%
Chicago, Illinois Water Revenue (RB) (FGIC)
0.000%, 11/01/08 5,150 2,981
0.000%, 11/01/09 6,450 3,507
0.000%, 11/01/10 3,980 2,035
Chicago, Single Family Mortgages, Series A,
Callable 03/01/06 @ 103 (RB) (AMT)
(GNMA/FNMA/FHLMC)
5.250%, 03/01/13 1,045 1,059
Cook County (RB) (MBIA)
7.250%, 11/01/07 2,000 2,390
De Kalb, Single Family Mortgages,
Series A (RB) (AMT) (GNMA)
7.000%, 12/01/01 540 549
Du Page County, Illinois Forest Preservation (RB)
6.000%, 11/01/04 1,000 1,084
Du Page County, Illinois Forest Preservation,
Callable 11/01/97 @ 102 (RB)
7.400%, 11/01/98 1,900 1,943
Illinois State (GO)
5.000%, 06/01/03 1,000 1,027
Illinois State, Health Facilities Authority,
Callable 11/13/97 @ 101 (RB) (MBIA)
7.400%, 08/15/98 100 102
Illinois State, Health Facilities Authority, Escrowed
To Maturity (RB) (MBIA)
7.400%, 08/15/98 102 105
Illinois State, Sales Tax, Series S (RB)
5.000%, 06/15/09 2,500 2,519
5.100%, 06/15/10 2,000 2,025
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Illinois State, Suburban Municipal Water Agency,
(RB) (MBIA)
5.050%, 05/01/09 (C) $ 4,000 $ 4,050
----------
25,376
----------
INDIANA--0.6%
Indiana State, Educational Loan Authority
(RB) (AMBAC)
6.750%, 12/01/97 500 502
Indiana State, Housing Finance Authority,
Callable 01/01/98 @ 102.5 (RB) (FPI)
7.800%, 01/01/99 415 424
Indiana State, Housing Finance Authority,
Callable 07/01/05 @ 102 (RB)
6.150%, 07/01/17 1,510 1,580
----------
2,506
----------
IOWA--0.2%
Davenport, Home Ownership Mortgages,
Series 1994 (RB)
4.000%, 03/01/03 30 30
Des Moines, Series C,
Callable 06/01/99 @ 100 (GO)
6.900%, 06/01/00 500 523
Iowa State, Finance Authority, Single
Family Mortgages, Series F (RB) (AMBAC)
5.350%, 07/01/99 400 409
----------
962
----------
KANSAS--0.6%
Kansas State, Development Finance Authority
(RB) (MBIA)
5.000%, 11/15/01 2,270 2,332
----------
LOUISIANA--0.6%
Jefferson County (GO) (FGIC)
6.150%, 09/01/05 2,500 2,750
----------
MAINE--0.3%
Maine State, Housing Authority, Series A,
Callable 02/01/04 @ 102 (RB)
5.650%, 11/15/20 1,000 1,017
Maine State, Municipal Bond Bank, Series A,
Pre-refunded @ 101 (RB)
7.125%, 11/01/98 (B) 400 417
----------
1,434
----------
MARYLAND--2.0%
Maryland State & Local Facilities Project (GO)
5.100%, 03/15/02 1,000 1,034
5.000%, 10/15/04 2,500 2,587
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Maryland State & Local Facilities Project, Series Z,
Callable 06/01/06 @ 100 (GO)
5.400%, 06/01/07 $ 1,000 $ 1,055
Montgomery County,
Callable 04/01/06 @ 102 (GO)
5.125%, 04/01/08 3,000 3,116
Washington Suburban Sanitation District,
Pre-refunded @ 102 (RB)
6.900%, 06/01/00 (B) 1,000 1,090
----------
8,882
----------
MASSACHUSETTS--1.3%
Massachusetts State, Health & Educational
Facilities Authority, Series A (RB) (MBIA)
5.100%, 07/01/10 3,000 3,000
Massachusetts State, Housing Finance Agency (RB)
5.350%, 12/01/02 500 519
Massachusetts State, Housing Finance Agency,
Series A (RB)
6.300%, 10/01/13 1,000 1,052
Massachusetts State, Water Pollution Control
Project (RB)
5.000%, 02/01/02 1,000 1,026
----------
5,597
----------
MICHIGAN--2.5%
Detroit, Water Supply Systems Project,
Series A (RB) (MBIA)
5.000%, 07/01/06 1,000 1,027
Jackson County, Hospital Finance Authority,
Series A (RB) (AMBAC)
5.000%, 06/01/09 1,000 1,009
Michigan State, Building Authority,
Callable 10/01/06 @ 102 (RB) (AMBAC)
5.050%, 10/01/09 585 592
Michigan State, Housing Development Authority,
Callable 07/15/04 @ 102 (RB) (FNMA)
5.125%, 07/15/08 1,980 2,002
Oakland University, Callable 05/15/07 @ 100
(RB) (MBIA)
5.600%, 05/15/10 1,000 1,049
Troy, School District (GO)
4.650%, 05/01/06 3,300 3,271
Walled Lake, Consolidated School District,
School Improvements Project,
Callable 05/01/07 @ 100 (GO) (MBIA)
5.300%, 05/01/08 2,000 2,072
----------
11,022
----------
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MINNESOTA--3.1%
Bloomington, Mall of America Project, Series A,
Callable 02/01/04 @ 100 (RB)
(FSA) 5.450%, 02/01/09 $ 1,000 $ 1,054
Dakota County, Housing & Redevelopment
Authority (RB) (MLO)
4.650%, 02/01/00 1,000 1,009
Minneapolis & Saint Paul, Housing &
Redevelopment Authority, Health Care Systems
Project (RB) (AMBAC)
4.250%, 11/15/99 1,100 1,100
Minneapolis & St Paul Minnesota, Housing &
Redevelopment Authority, Callable 08/15/00 @ 102
(RB) (MBIA)
7.400%, 08/15/05 600 658
Minneapolis, Childrens Medical Center,
Series C, Pre-refunded @ 102 (RB)
7.000%, 12/01/20 (B) 1,000 1,112
Minneapolis, Hennepin Avenue Project,
Series C (GO)
6.200%, 03/01/02 800 861
Minnesota Sate, Public Facilities Authority,
Series A (RB)
6.250%, 03/01/00 1,000 1,049
Minnesota State, Higher Education Supplemental
Student Loan, (RB)
4.150%, 10/02/97 (A) 715 715
Minnesota State, Municipal Power Agency, Series A,
Callable 01/01/03 @ 102 (RB) (AMBAC)
5.700%, 01/01/05 2,500 2,669
St Paul, Minnesota Housing & Redevelopment
Authority, District Heating, Series A (RB)
4.100%, 10/01/97 (A) 600 600
Stillwater, Independent School District #834,
Callable 02/01/99 @ 100 (GO) (FGIC)
6.750%, 02/01/09 2,700 2,788
----------
13,615
----------
MISSISSIPPI--0.5%
Mississippi State, Capital Improvements,
Series B (GO)
6.000%, 08/01/01 2,000 2,122
----------
MISSOURI--0.7%
Kansas City, School District (RB) (MLO) (FGIC)
6.300%, 02/01/00 1,000 1,049
Kansas City, School District,
Callable 02/01/01 @ 102 (RB) (MLO) (FGIC)
6.400%, 02/01/02 2,000 2,165
----------
3,214
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
NEBRASKA--8.4%
Buffalo County, Hospital Authority #1,
Escrowed To Maturity (RB)
6.375%, 11/01/03 $ 155 $ 160
Douglas County, Hospital Authority #1 (RB) (AMBAC)
4.600%, 09/01/04 1,255 1,258
4.800%, 09/01/08 1,500 1,500
4.900%, 09/01/09 1,500 1,500
Douglas County, Hospital Authority #2,
Pre-refunded @ 102 (RB)
7.250%, 11/01/21 (B) 5,000 5,637
Douglas County, School District #17 Millard,
Series A, Callable 05/15/99 @ 101 (GO) (MBIA)
5.050%, 05/15/01 750 765
Douglas County, School District #17 Millard,
Series B, Callable 05/15/99 @ 101
(GO) (MBIA) 5.000%, 05/15/00 500 511
Fremont, Electrical Systems Project, Escrowed
To Maturity (RB)
5.500%, 01/01/98 300 301
Grand Island, Electrical Systems Project,
Callable 09/01/99 @ 101 (RB)
6.050%, 09/01/01 1,000 1,045
Lincoln, Electrical Systems Project, Series A,
Callable 09/01/03 @ 102 (RB)
4.800%, 09/01/04 3,000 3,049
Lincoln, Power Supply Facilities, Series A (RB)
5.000%, 09/01/00 500 512
Lincoln, Waterworks Project (RB)
4.900%, 08/15/03 1,000 1,036
Municipal Energy Agency of Nebraska,
Series A (RB) (AMBAC)
5.450%, 04/01/02 750 785
Municipal Energy Agency of Nebraska, Series A,
Callable 04/01/02 @ 102 (RB) (AMBAC)
5.600%, 04/01/03 750 793
Nebraska State, Educational Finance Authority,
Creighton University Project,
Callable 01/01/06 @ 101 (RB) (AMBAC)
5.600%, 01/01/07 2,500 2,675
Nebraska State, Investment Finance Authority,
Health Systems Project (RB) (MBIA)
6.750%, 03/01/01 2,000 2,155
Nebraska State, Public Power District,
Callable 01/01/03 @ 102 (RB) (MBIA)
4.900%, 01/01/04 1,500 1,532
Nebraska State, Public Power District,
Nuclear Facility Project, Callable 01/01/03 @ 102
(RB) (MBIA)
5.200%, 07/01/00 1,000 1,025
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Nebraska State, Public Power District,
Series A (RB) (MBIA)
6.000%, 01/01/04 $ 1,385 $ 1,496
Nebraska State, Public Power District,
Series A (RB)
5.500%, 01/01/01 500 519
Omaha (GO)
4.700%, 05/01/99 1,000 1,011
4.700%, 05/01/03 1,000 1,017
Omaha, Callable 09/01/01 @ 102 (GO)
5.900%, 09/01/02 500 536
Omaha, Northwest Library Facilities,
Callable 08/15/07 @ 102 (RB)
5.250%, 08/15/12 2,475 2,524
Omaha, Public Power District,
Series B (RB)
5.000%, 02/01/03 1,000 1,029
Omaha, Public Power District, Series A,
Escrowed To Maturity (RB)
6.500%, 02/01/98 200 202
Omaha, Sewer Systems (RB)
5.200%, 01/15/02 1,000 1,035
Ravenna, Industrial Development (RB)
5.000%, 09/01/00 810 827
----------
36,435
----------
NEVADA--1.1%
Clark County, School District, Building & Renovation,
Series B, Callable 06/15/07 @ 101 (GO) (FGIC)
5.750%, 06/15/08 1,000 1,077
Nevada State, Housing Division, Single Family
Program, Series R (RB) (FHA/VA)
4.600%, 04/01/98 610 613
Nevada State, Municipal Bond Bank,
Escrowed To Maturity (RB)
6.100%, 07/01/02 1,000 1,074
Nevada State, Series B, Callable 05/01/01 @ 101 (GO)
6.000%, 05/01/02 900 956
Washoe County, School District,
Callable 08/01/02 @ 101 (GO) (MBIA)
5.700%, 08/01/03 1,000 1,065
----------
4,785
----------
NEW JERSEY--1.7%
New Jersey State (GO)
5.000%, 07/15/01 3,000 3,086
5.300%, 02/15/02 1,000 1,041
5.900%, 08/01/02 1,000 1,071
New Jersey State, Housing & Mortgage Finance
Agency, Callable 10/01/05 @ 100 (RB) (MBIA)
3.750%, 10/01/09 275 275
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
New Jersey State, Transportation Trust Fund
Authority, Series B (RB) (MBIA)
5.000%, 06/15/04 $ 1,000 $ 1,027
New Jersey State, Turnpike Authority, Series A,
Callable 01/01/01 @ 102 (RB) (AMBAC)
6.750%, 01/01/08 1,000 1,077
----------
7,577
----------
NEW MEXICO--0.7%
Farmington, Utility Systems,
Escrowed to Maturity (RB)
10.000%, 01/01/02 540 605
New Mexico State, Callable 09/01/00 @ 100 (GO)
5.250%, 09/01/04 1,000 1,020
New Mexico State, Mortgage Finance Authority
(RB) (GNMA/FNMA)
5.650%, 07/01/08 1,305 1,405
----------
3,030
----------
NEW YORK--2.6%
Hempstead Town, Industrial Development Agency,
Callable 12/01/06 @ 102 (RB)
5.000%, 12/01/08 2,000 2,022
Middletown, School District (GO) (FGIC)
5.000%, 11/01/05 3,000 3,101
Nassau County, General Improvements,
Series V (GO) (AMBAC)
5.150%, 03/01/04 2,000 2,080
New York State, Dorm Authority-Manhattan College,
Callable 07/01/02 @ 102 (RB)
6.100%, 07/01/04 1,000 1,070
New York State, Environmental Facilities,
Pollution Control Project,
Callable 11/15/04 @ 102 (RB)
6.400%, 05/15/06 1,250 1,411
New York, Municipal Assistance Corporation,
Series I (RB)
6.250%, 07/01/05 1,500 1,667
----------
11,351
----------
NORTH CAROLINA--1.0%
Mecklenburg County, Series B,
Callable 03/01/06 @ 101.5 (GO)
4.800%, 03/01/09 2,000 2,013
New Hanover County, North Carolina Gang Nail
Systems (RB)
4.100%, 10/01/97 (A) 2,500 2,500
----------
4,513
----------
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
NORTH DAKOTA--0.9%
Bismarck, Infrastructure Project (COP) (MLO)
8.000%, 10/01/97 $ 300 $ 300
Bismarck, Infrastructure Project,
Callable 10/01/97 @ 100 (COP) (MLO)
8.500%, 10/01/01 50 50
Grand Forks, United Hospital Obligated Group
(RB) (MBIA)
6.000%, 12/01/00 1,000 1,051
North Dakota State, 1986 Real Estate, Series A,
Callable 11/28/97 @ 101 (GO)
7.000%, 09/01/98 85 87
North Dakota State, Building Authority,
Pre-refunded @ 100 (RB) (MLO) (AMBAC)
7.400%, 06/01/00 (B) 1,000 1,083
North Dakota State, Housing Finance Agency,
Single Family Mortgages, Callable 01/01/04 @ 100
(RB) (FHA/FMHA)
6.100%, 07/01/16 70 71
North Dakota State, Industrial Commission,
Lignite Program, Series A (RB)
5.750%, 11/15/05 1,000 1,063
North Dakota State, Student Loans (RB)
6.100%, 07/01/01 25 27
North Dakota State, Student Loans,
Callable 07/01/98 @ 103 (RB) (AMBAC)
6.900%, 07/01/01 25 26
Oliver County, Square Butte Electric Cooperative
Project, Callable 11/13/97 @ 100 (RB)
7.000%, 12/31/10 50 50
----------
3,808
----------
OHIO--2.9%
Lorain County, Hospital Revenue,
Callable 09/01/07 @ 102 (RB) (MBIA)
5.375%, 09/01/09 1,000 1,043
Ohio State, Building Authority, Adult
Correctional Facilities Project (RB) (MLO) (MBIA)
5.500%, 10/01/04 1,000 1,061
Ohio State, Building Authority, Juvenile
Correctional Facilities Project (RB) (AMBAC)
5.900%, 10/01/03 1,000 1,079
Ohio State, Infrastructure Improvement (RB)
5.500%, 08/01/07 1,400 1,503
Ohio State, Public Facilities Higher Education,
Series II-B (RB)
4.500%, 11/01/03 3,500 3,509
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Ohio State, Water Development Authority
(RB) (AMBAC)
5.250%, 06/01/06 $ 2,000 $ 2,095
Ohio State, Water Development Authority
(RB) (MBIA)
6.000%, 12/01/00 2,000 2,110
----------
12,400
----------
OKLAHOMA--1.6%
Oklahoma City, Metropolitan Utility Authority,
Callable 09/01/05 @ 102 (RB)
5.600%, 09/01/06 1,000 1,073
Oklahoma County, Housing Finance Authority,
Pre-refunded @ 56.9 (RB)
0.000%, 03/01/06 (B) 3,690 1,421
Oklahoma State, Housing Finance Authority
(RB) (FNMA)
5.500%, 11/01/25 3,000 3,090
Tulsa, Callable 02/01/05 @ 100 (GO)
6.500%, 02/01/15 1,140 1,251
----------
6,835
----------
OREGON--1.4%
Lane County, School District #19 Springfield,
Callable 10/15/04 @ 101 (GO) (MBIA)
5.900%, 10/15/06 1,000 1,089
Polk Marion & Benton Counties,
School District #13J (GO) (FGIC)
5.500%, 12/01/04 1,015 1,089
Portland, Community College District, Series A,
Callable 07/01/02 @ 100 (GO)
6.000%, 07/01/12 500 524
Washington County, Criminal Justice Facilities,
Callable 12/01/04 @ 100 (RB)
5.625%, 12/01/05 900 965
Yamhill County, School District #40 (GO) (FGIC)
5.375%, 06/01/04 1,000 1,058
5.375%, 06/01/05 1,350 1,426
----------
6,151
----------
PENNSYLVANIA--4.1%
Delaware River Port Authority, PA & NJ Bridges,
(RB) (AMBAC)
7.375%, 01/01/07 2,000 2,115
Erie County, Prison Authority, Pre-refunded @ 100
(RB) (MLO) (MBIA)
6.600%, 11/01/01 (B) 1,000 1,089
6.700%, 11/01/01 (B) 1,000 1,093
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Governor Mifflin School District, School
Improvements Project, Pre-refunded @ 100
(GO) (AMBAC)
6.500%, 02/01/02 (B) $ 2,000 $ 2,170
Northumberland County, Commonwealth Lease,
Callable 10/15/01 @ 100 (RB) (MLO) (MBIA)
6.600%, 10/15/02 1,000 1,088
Pennsylvania State (GO) (AMBAC)
5.125%, 09/15/03 5,000 5,181
Pennsylvania State, Callable 03/15/07 @ 101.5
(GO) (AMBAC)
5.125%, 09/15/09 1,500 1,536
Pennsylvania State, Housing Finance Authority,
Series 37A (RB)
5.450%, 10/01/17 2,100 2,121
Quakertown (GO)
3.900%, 10/07/97 (A) 1,300 1,300
----------
17,693
----------
PUERTO RICO--0.3%
Electric Power Authority, Series Aa (RB) (MBIA)
6.000%, 07/01/06 1,000 1,098
Housing Finance Authority, Single Family
Mortgages (RB) (GNMA)
5.800%, 10/15/00 85 88
Housing Finance Authority, Single Family Mortgages
(RB) (AMT) (GNMA)
6.000%, 02/01/02 110 115
----------
1,301
----------
RHODE ISLAND--1.5%
Rhode Island State, Consolidated Capital
Development, Series B, Pre-refunded
@ 102 (GO)
6.125%, 05/15/00 (B) 5,200 5,545
Rhode Island State, Depositors Protection,
Series A (GO) (FSA)
6.250%, 08/01/03 1,000 1,091
----------
6,636
----------
SOUTH CAROLINA--0.6%
Piedmont, Electrical Power Agency,
Series A (RB) (FGIC)
6.250%, 01/01/04 2,350 2,538
----------
SOUTH DAKOTA--0.1%
Sioux Falls (COP) (MLO)
6.450%, 08/01/01 500 540
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
TENNESSEE--0.0%
Montgomery County, Building Authority,
Callable 12/15/98 @ 100 (RB)
7.500%, 12/15/00 $ 35 $ 35
----------
TEXAS--3.3%
Austin, Electric, Waterworks & Sewer,
Pre-refunded @ 100 (RB)
6.600%, 04/01/98 (B) 15 15
6.600%, 10/01/98 (B) 25 26
6.600%, 04/01/99 (B) 10 10
6.600%, 10/01/99 (B) 365 383
Austin, Utility Systems Revenue,
Callable 11/15/98 @ 102 (RB) (FGIC)
7.250%, 11/15/03 1,000 1,056
Dallas County, Callable 02/15/01 @ 100 (GO)
6.400%, 08/15/03 750 798
Dallas, Callable 02/15/98 @ 101 (GO)
6.875%, 02/15/99 500 511
Denton & Collin Counties (GO)
6.500%, 02/15/03 3,000 3,308
Galveston County, Special Tax Revenue
(RB) (MBIA)
6.400%, 02/01/05 315 350
Galveston County, Special Tax Revenue,
(RB) (MBIA)
6.400%, 02/01/05 185 197
Garland, School District (GO)
8.000%, 02/15/01 1,000 1,115
Grapevine, Grapevine-Colleyville School District
(GO) (PSFG)
5.250%, 08/15/03 2,000 2,093
Houston, Housing Finance (RB)
8.000%, 06/01/14 2,000 2,220
Liberty & Johnson Counties, Correctional Facilities,
Callable 09/15/01 @ 100 (RB) (MBIA)
6.850%, 09/15/04 1,000 1,083
Lubbock, Independent School District,
Pre-refunded @ 100 (GO) (PSFG)
6.375%, 08/15/00 (B) 725 769
Texas State, Callable 12/01/97 @ 100 (GO)
7.000%, 12/01/01 500 502
----------
14,436
----------
UTAH--2.1%
Intermountain Power Authority (RB) (FSA)
5.250%, 07/01/03 1,000 1,039
Intermountain Power Authority,
Callable 07/01/98 @ 102 (RB)
7.625%, 07/01/08 500 522
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Nebo, School District, Callable 04/01/01 @ 100
(GO) (FGIC)
5.500%, 04/01/04 $ 500 $ 516
Salt Lake County, Municipal Building Authority,
Series A (RB) (MLO)
6.000%, 10/01/03 525 565
Salt Lake County, Municipal Building Authority,
Series A1 (RB) (MLO)
6.000%, 10/01/01 475 504
Utah State, Housing Finance Agency,
Single Family Mortgages, Series E1
(RB) (FHA/VA)
6.050%, 01/01/98 80 80
Utah State, Housing Finance Agency,
Single Family Mortgages, Series F1
(RB) (FHA/VA/FMHA)
4.900%, 01/01/99 210 212
Utah State, Housing Finance Agency, Series R
(RB) (FHA/VA)
5.950%, 07/01/08 2,365 2,471
Utah State, Housing Finance Agency, Single
Family Mortgages (RB) (AMBAC)
6.300%, 01/01/18 1,465 1,555
Utah State, Housing Finance Agency, Single Family
Mortgages (RB) (FHA/VA)
6.350%, 01/01/02 195 205
5.650%, 07/01/06 880 930
Utah State, Housing Finance Agency, Single Family
Mortgages, Series E1 (RB) (FHA/VA)
6.050%, 07/01/98 90 92
Utah State, Intermountain Power Agency,
Callable 07/01/98 @ 102 (RB)
7.300%, 07/01/00 500 521
----------
9,212
----------
VIRGINIA--2.4%
Brunswick County, Industrial Development
Authority, Callable 07/01/06 @ 102
(RB) (MLO) (MBIA)
5.550%, 07/01/08 1,500 1,601
Chesapeake, Callable 05/01/04 @ 102
(GO) (STAID)
5.000%, 05/01/13 1,000 998
Fairfax County, Public Improvements, Series A,
Callable 06/01/05 @ 102 (GO)
5.000%, 06/01/06 2,000 2,065
Fairfax County, Series A,
Pre-refunded @ 100.5 (GO)
6.000%, 04/01/98 (B) 500 508
Peninsula Regional Jail Authority (RB) (MBIA)
5.300%, 10/01/09 1,000 1,034
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Riverside Regional Jail Authority,
Callable 07/01/05 @ 102 (RB) (MBIA)
5.700%, 07/01/08 $ 2,000 $ 2,155
Virginia State, Housing Development Authority
Series H (RB)
6.200%, 07/01/04 1,000 1,075
Virginia State, Housing Development Authority,
Series D (RB)
6.100%, 01/01/14 1,110 1,181
----------
10,617
----------
WASHINGTON--16.2%
Clark County, Pre-refunded @ 100 (GO)
6.850%, 12/01/98 (B) 495 511
Clark County, Public Utility District #1,
Callable 01/01/01 @ 102 (RB) (FGIC)
6.100%, 01/01/02 750 802
Clark County, School District #37 (GO)
6.600%, 12/01/98 450 464
Clark County, School District #37,
Callable 12/01/02 @ 100 (GO)
6.100%, 12/01/04 1,000 1,071
Franklin County, Public Utility,
Callable 03/01/99 @ 100 (RB) (AMBAC)
7.000%, 09/01/00 400 415
Grant County, Public Utility District #2 (RB)
5.750%, 01/01/02 670 706
Grays Harbor County, Public Utility District #1,
Callable 01/01/99 @ 100 (RB) (AMBAC)
7.000%, 01/01/01 465 481
Island County, School District #206,
Callable 12/01/04 @ 100 (GO) (AMBAC)
5.750%, 12/01/06 700 750
King County, Public Hospital District (RB)
5.400%, 06/01/00 500 514
King County, Public Hospital District,
Callable 12/01/02 @ 100 (RB)
5.800%, 12/01/03 910 965
King County, School District #403,
Callable 12/01/02 @ 101 (GO)
6.050%, 12/01/03 875 948
King County, School District #408 (GO)
6.200%, 12/01/02 515 555
King County, School District #412 (GO)
6.200%, 12/01/97 445 447
King County, School District #414 (GO)
5.850%, 12/01/02 1,365 1,462
King County, School District #415 (GO)
5.750%, 12/01/01 950 1,002
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
King County, School District #415,
Callable 06/01/04 @ 100 (GO) (AMBAC)
6.450%, 06/01/06 $ 920 $ 1,024
King County, Series A, Pre-refunded @ 100
(GO)
6.900%, 12/01/00 (B) 500 540
King County, Series B,
Callable 12/01/07 @ 102 (GO)
5.850%, 12/01/13 3,000 3,191
King County, Series-B,
Callable 01/01/04 @ 100 (GO)
4.500%, 01/01/09 1,825 1,766
Kitsap County, School District #401,
Callable 12/01/02 @ 101 (GO)
6.625%, 12/01/08 750 809
Kitsap County, School District #402,
Callable 12/01/97 @ 100 (GO)
7.400%, 12/01/99 185 186
Pierce County, School District #3, Series B (GO)
5.900%, 12/01/00 1,450 1,524
Pierce County, School District #320 (GO)
6.000%, 12/01/06 1,000 1,093
Pierce County, School District #401, Series A (GO)
5.950%, 12/01/01 640 681
Pierce County, School District #403,
Callable 12/01/01 @ 100 (GO)
6.200%, 12/01/02 1,285 1,373
Pierce County, School District #403,
Callable 12/01/02 @ 100 (GO)
6.350%, 12/01/04 500 541
Pierce County, Sewer Improvements (RB)
5.000%, 02/01/02 500 501
Port Everett, Airport & Marina Project (RB) (MBIA)
4.700%, 04/01/03 1,140 1,159
Port Everett, Series B (RB) (MBIA)
4.800%, 04/01/04 1,545 1,560
Port Tacoma, Series A (GO)
6.300%, 06/01/01 790 845
Seattle, Metropolitan Municipality,
Callable 11/13/97 @ 102 (GO)
6.750%, 01/01/99 500 511
Seattle, Metropolitan Municipality,
Callable 01/01/98 @ 101.5 (GO)
6.300%, 01/01/04 790 805
Seattle, Municipal Water Revenue,
Pre-refunded @ 102 (RB)
7.550%, 12/01/97 (B) 260 267
Seattle, Solid Waste, Callable 05/01/99 @ 102 (GO)
7.000%, 05/01/00 500 531
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Snohomish County, Housing Authority,
Callable 04/01/06 @ 100 (RB)
6.300%, 04/01/16 $ 1,035 $ 1,079
Snohomish County, Public Utilities District #1,
Callable 11/01/97 @ 100 (GO)
5.850%, 11/01/17 1,000 1,001
Snohomish County, Public Utilities District #1,
Series A (GO)
6.800%, 01/01/05 2,000 2,148
Snohomish County, Public Utilities District #1,
Series B (GO)
6.700%, 01/01/03 1,000 1,080
Snohomish County, School District #2,
Callable 12/01/03 @ 102 (GO) (MBIA)
6.000%, 12/01/06 1,800 1,955
Snohomish County, School District #2, Series A,
Callable 06/01/01 @ 100 (GO)
6.700%, 06/01/02 1,200 1,290
Snohomish County, School District #6 (GO)
6.250%, 12/01/01 900 965
Snohomish County, School District #6,
Pre-refunded @ 100 (GO)
6.800%, 06/01/01 (B) 900 977
Snohomish County, Solid Waste,
Callable 12/01/01 @ 102 (GO) (MBIA)
6.800%, 12/01/03 650 721
South Columbia Basin (GO)
5.800%, 12/01/01 500 526
Spokane County, School District (GO) (FSA)
4.500%, 12/01/04 875 878
Spokane County, School District #81 (GO)
5.900%, 12/01/02 1,000 1,070
Spokane County, Sewer Revenue,
Callable 06/01/02 @ 100 (RB)
6.150%, 06/01/05 1,470 1,566
Spokane County, Solid Waste Management,
Callable 12/01/02 @ 102 (RB) (AMBAC)
6.400%, 12/01/03 800 883
Spokane, Callable 01/01/98 @ 100 (GO)
6.700%, 01/01/99 500 503
Tacoma, Electrical Systems Revenue,
Callable 01/01/02 @ 102 (RB) (AMBAC)
6.000%, 01/01/06 1,400 1,498
Tacoma, Metropolitan Park District (RB)
5.250%, 02/01/98 590 593
Tacoma, Series A, Callable 07/01/02 @ 100 (GO)
5.900%, 07/01/03 600 638
Tacoma, Series A, Callable 12/01/02 @ 101 (GO)
6.125%, 12/01/05 815 878
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Tacoma, Utility Revenue, Pre-refunded @ 101
(RB) (AMBAC)
6.800%, 12/01/99 (B) $ 465 $ 496
Tacoma, Utility Revenue, Pre-refunded @ 101
(RB) (MBIA)
6.200%, 12/01/01 (B) 575 623
Thurston County, School District #111,
Callable 12/01/02 @ 100 (GO)
6.700%, 12/01/03 1,000 1,106
Washington State (GO)
7.100%, 06/01/98 250 255
Washington State, Conservation & Renewable
Energy System (RB)
5.650%, 10/01/03 700 748
Washington State, Health Care Facility Authority
(RB) (FGIC)
7.500%, 08/15/00 600 630
Washington State, Hearthstone Project,
Callable 01/01/05 @ 102 (RB)
6.000%, 01/01/10 810 866
Washington State, Liquor Board,
(COP) (MLO) (AMBAC)
3.750%, 10/01/97 45 45
Washington State, Public Power Supply Systems,
Nuclear Project #2, Callable 01/01/01 @ 102 (RB)
7.500%, 07/01/03 3,000 3,334
Washington State, Public Power Supply Systems,
Nuclear Project #2, Callable 07/01/01 @ 102 (RB)
6.500%, 07/01/03 4,750 5,177
Washington State, Public Power Supply System,
Nuclear Project #2, Series A (RB) (AMBAC)
5.700%, 07/01/11 1,000 1,044
Washington State, Public Power Supply System,
Nuclear Project #3, Series B (RB)
5.250%, 07/01/03 1,090 1,127
Washington State, Series 93A (GO)
5.300%, 10/01/01 1,000 1,039
Washington State, Series A,
Callable 04/01/01 @ 102 (COP) (MLO)
6.800%, 04/01/05 705 765
Washington State, Series R-89B (GO)
7.000%, 09/01/98 375 385
Washington State, Series R-92B (GO)
6.200%, 09/01/01 1,000 1,071
Washington State, Series R-96B (GO)
5.500%, 07/01/03 1,000 1,059
Washington State, Single Family Mortgage
Revenue (RB) (GNMA/FNMA)
6.700%, 07/01/02 290 304
----------
70,323
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000)/SHARES VALUE (000)
- --------------------------------------------------------------------------------
WISCONSIN--3.0%
Franklin (GO) (PN) (FSA)
4.800%, 09/01/03 $ 750 $ 765
Franklin, Public Improvements (GO) (PN) (FSA)
4.900%, 09/01/04 850 870
Milwaukee County, Callable 09/01/02 @ 100 (GO)
5.550%, 09/01/03 1,700 1,774
Milwaukee County, Series A,
Callable 09/01/02 @ 100 (GO)
5.875%, 09/01/07 500 524
Mount Pleasant, Callable 10/01/00 @ 100 (GO)
6.300%, 10/01/03 735 774
Racine, School District, Callable 04/01/99 @ 100
(GO) (AMBAC)
6.500%, 04/01/01 250 258
Waukesha County, (GO) (PN)
4.600%, 12/01/03 2,000 2,030
Wisconsin State (GO)
6.000%, 05/01/02 1,000 1,069
Wisconsin State, Callable 05/01/06 @ 100 (GO)
4.800%, 05/01/10 2,000 1,928
Wisconsin State, Housing & Economic Authority,
Series A (GO)
5.000%, 11/01/01 1,585 1,611
Wisconsin State, Series D,
Callable 05/01/00 @ 101 (GO)
6.000%, 05/01/01 500 528
Wisconsin State, Series G,
Callable 05/01/99 @ 101 (GO)
6.400%, 05/01/00 1,000 1,045
----------
13,176
----------
WYOMING--0.3%
Sweetwater, Pacific Power & Light,
Pre-refunded @ 100 (RB)
6.500%, 12/01/01 (B) 700 760
Wyoming State, Community Development
Authority, Single Family Mortgages (RB) (FHA/VA)
6.200%, 06/01/99 500 514
----------
1,274
----------
TOTAL MUNICIPAL BONDS
(Cost $406,409) 420,035
----------
MONEY MARKET FUND--3.2%
Federated Tax Free Money Market 13,822,810 13,823
----------
TOTAL MONEY MARKET FUND
(Cost $13,823) 13,823
----------
INTERMEDIATE TAX FREE FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--99.8%
(Cost $420,232) $ 433,858
----------
OTHER ASSETS AND LIABILITIES, NET--0.2% 990
----------
NET ASSETS:
Portfolio Shares--Institutional Class
($.0001 par value--2 billion authorized) based
on 39,838,786 outstanding shares 414,870
Portfolio Shares--Retail Class A
($.0001 par value--2 billion authorized) based
on 355,190 outstanding shares 3,799
Undistributed net investment income 11
Accumulated net realized gain on investments 2,542
Net unrealized appreciation of investments 13,626
----------
TOTAL NET ASSETS--100.0% $ 434,848
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--INSTITUTIONAL CLASS $ 10.82
----------
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE--
RETAIL CLASS A $ 10.84
MAXIMUM SALES CHARGE OF 3.00% (1) 0.34
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 11.18
----------
(1) The offer price is calculated by dividing the net asset value by 1 minus the
maximum sales charge of 3.00%.
(A) Variable Rate Security--the rate reported on the Statement of Net Assets is
the rate in effect as of September 30, 1997. The date shown is the next
reset date.
(B) Pre-refunded Security--the pre-refunded date is shown as the maturity date
on the Statement of Net Assets.
(C) At September 30, 1997, the cost of securities purchased on a when issue
basis was $2,960,000 for Alabama State Docks Department and $4,050,000 for
Illinois State Suburban Municipal Water Agency.
AMBAC--American Municipal Bond Assurance Company
AMT--Alternative Minimum Tax
CMI--California Municipal Insurers
COP--Certificate of Participation
FGIC--Financial Guaranty Insurance Corporation
FHA--Federal Housing Authority
FNMA--Federal National Mortgage Association
FMHA--Farmers Home Administration
FPI--Foremost Pool Insurance
FSA--Financial Security Assurance
GNMA--Government National Mortgage Association
GO--General Obligation
MBIA--Municipal Bond Insurance Association
MLO--Municipal Lease Obligation
PN--Promissory Notes
PSFG--Permanent School Fund Guaranteed
RB--Revenue Bond
STAID--State Aid Withholding
SWB--Swiss Bank
VA--Veterans Administration
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
STATEMENTS OF NET ASSETS
September 30, 1997
ASSET ALLOCATION FUND
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS--35.3%
AEROSPACE & DEFENSE--0.2%
Lockheed Martin 1,104 $ 118
Raytheon 1,300 77
----------
195
----------
AGRICULTURE--0.0%
Pioneer Hi-Bred International 500 45
----------
AIR TRANSPORTATION--0.2%
AMR* 500 55
Delta Air Lines 400 38
Federal Express* 600 48
Southwest Airlines 800 26
U.S. Air Group* 400 17
----------
184
----------
AIRCRAFT--0.6%
Allied Signal 3,200 136
Boeing 5,552 302
General Dynamics 300 26
Northrop 400 49
Textron 900 58
United Technologies 1,300 105
----------
676
----------
APPAREL/TEXTILES--0.1%
Fruit of the Loom, Cl A* 400 11
Liz Claiborne 400 22
Russell 200 6
Springs Industries, Cl A 100 5
V.F 400 37
----------
81
----------
AUTOMOTIVE--0.8%
Chrysler 3,800 140
Dana 600 30
Eaton 400 37
Echlin 300 11
Fleetwood Enterprises 200 7
Ford Motor 6,600 299
General Motors 4,100 274
Navistar International* 400 11
Paccar 400 22
TRW 700 38
----------
869
----------
BANKS--3.1%
Banc One 3,177 177
Bank of New York 2,200 106
ASSET ALLOCATION FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
BankAmerica 4,000 $ 293
BankBoston 800 71
Bankers Trust New York 500 61
Barnett Banks 1,100 78
Chase Manhattan 2,408 284
Citicorp 2,600 348
Comerica 600 47
CoreStates Financial 1,200 79
Fifth Third Bancorp 900 59
First Chicago NBD 1,753 132
First Union 3,240 162
Fleet Financial Group 1,494 98
Golden West Financial 300 27
H.F. Ahmanson 600 34
Huntington Bancshares 900 32
J.P. Morgan 1,000 114
KeyCorp 1,200 76
MBNA 1,900 77
Mellon Bank 1,400 77
National City 1,200 74
NationsBank 4,056 251
Norwest 2,100 129
PNC Bank 1,800 88
Republic New York 300 34
State Street 900 55
Suntrust Banks 1,200 82
U.S. Bancorp 1,328 128
Wachovia 900 65
Washington Mutual 1,410 98
Wells Fargo 499 137
----------
3,573
----------
BEAUTY PRODUCTS--0.6%
Alberto-Culver, Cl B 300 9
Avon Products 700 43
Colgate-Palmolive 1,700 118
Ecolab 400 19
International Flavors & Fragrances 600 29
Procter & Gamble 7,600 525
----------
743
----------
BROADCASTING, NEWSPAPERS & ADVERTISING--0.2%
Clear Channel Communications* 500 32
Comcast, Cl A 2,000 51
Interpublic Group 650 33
Tele-Communications, Cl A* 2,354 48
Telecom-Tci Ventures Group A* 236 5
Viacom, Cl B* 1,993 63
----------
232
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
ASSET ALLOCATION FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
BUILDING & CONSTRUCTION--0.1%
Centex 200 $ 12
Fluor 500 27
Foster Wheeler 200 9
Halliburton 1,400 73
Kaufman & Broad Home 200 4
Owens Corning 300 11
Pulte 100 4
----------
140
----------
CHEMICALS--0.8%
Air Products & Chemicals 600 50
Dow Chemical 1,300 118
E.I. du Pont de Nemours 6,300 388
Eastman Chemical 400 25
FMC* 200 18
Great Lakes Chemical 300 15
Hercules 600 30
Monsanto 3,300 129
Morton International 800 28
Nalco Chemical 400 16
Praxair 900 46
Rohm & Haas 300 29
Solutia* 660 13
Union Carbide 700 34
W.R. Grace 400 29
----------
968
----------
COMMUNICATIONS EQUIPMENT--0.5%
Andrew* 475 12
DSC Communications* 700 19
General Signal 300 13
Harris 400 18
ITT Industries 700 23
Motorola 3,300 237
Northern Telecom 1,500 156
Scientific-Atlanta 400 9
Tellabs* 1,000 52
----------
539
----------
COMPUTERS & SERVICES--1.7%
Apple Computer* 700 15
Bay Networks* 1,100 42
Cabletron Systems* 900 29
Ceridian* 400 15
Compaq Computer* 4,465 334
Data General* 300 8
Dell Computer* 1,900 184
Digital Equipment* 900 39
ASSET ALLOCATION FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
EMC* 1,400 $ 82
Hewlett Packard 5,700 397
IBM 5,600 593
Pitney Bowes 800 67
Seagate Technology* 1,400 51
Silicon Graphics* 988 26
Tandy 600 20
Unisys* 1,000 15
----------
1,917
----------
CONSUMER PRODUCTS--0.0%
Stride Rite 300 4
----------
CONTAINERS & PACKAGING--0.1%
Ball 200 7
Crown, Cork & Seal 700 32
Newell 900 36
Owens-Illinois* 800 27
----------
102
----------
DRUGS--3.0%
Abbott Laboratories 4,300 275
Allergan 400 14
Alza, Cl A* 500 15
American Home Products 3,600 263
Amgen* 1,500 72
Bristol-Myers Squibb 5,600 463
Eli Lilly 3,144 379
Johnson & Johnson 7,400 426
Merck 6,700 670
Pfizer 7,200 432
Pharmacia & Upjohn 2,825 103
Schering Plough 4,100 211
Warner Lambert 1,500 202
----------
3,525
----------
ELECTRICAL SERVICES--0.9%
American Electric Power 1,100 50
Baltimore Gas & Electric 800 22
Carolina Power & Light 800 29
Central & South West 1,200 27
Cinergy 911 30
Consolidated Edison New York 1,300 44
Dominion Resources of Virginia 1,000 38
DTE Energy 800 24
Duke Power 2,044 101
Edison International 2,300 58
Entergy 1,300 34
FPL Group 1,000 51
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
ASSET ALLOCATION FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
GPU 700 $ 25
Houston Industries 1,509 33
Niagara Mohawk Power* 800 8
Northern States Power 400 20
Ohio Edison 900 21
Pacificorp 1,700 38
PECO Energy 1,200 28
PG&E 2,500 58
PP&L Resources 900 20
Public Service Enterprise Group 1,300 33
Raychem 200 17
Southern 3,800 86
Texas Utilities 1,390 50
Thomas & Betts 300 16
Unicom 1,200 28
Union Electric 600 23
----------
1,012
----------
ENTERTAINMENT--0.3%
Harrah's Entertainment* 550 12
King World Productions 200 9
Mirage Resorts* 1,000 30
Walt Disney 3,800 306
----------
357
----------
ENVIRONMENTAL SERVICES--0.1%
Browning Ferris Industries 1,200 46
Laidlaw 1,800 27
Waste Management 2,506 88
----------
161
----------
FINANCIAL SERVICES--1.1%
American Express 2,600 213
Beneficial 300 23
Charles Schwab 1,500 54
Countrywide Credit Industries 600 22
FHLMC 3,900 137
FNMA 5,900 277
Green Tree Financial 800 38
H & R Block 600 23
Household International 600 68
Merrill Lynch 1,900 141
Morgan Stanley, Dean Witter, Discover 3,242 175
Providian Financial* 500 20
Salomon 600 45
Transamerica 385 38
----------
1,274
----------
ASSET ALLOCATION FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO--2.8%
Adolph Coors, Cl B 200 $ 8
Anheuser Busch 2,800 126
Archer Daniels Midland 3,173 76
Brown Forman, Cl B 400 20
Campbell Soup 2,600 127
Coca Cola 13,900 847
ConAgra 1,300 86
CPC International 800 74
Fortune Brands 1,000 34
General Mills 900 62
H.J. Heinz 2,050 95
Hershey Foods 800 45
Kellogg 2,300 97
PepsiCo 8,600 349
Philip Morris 13,600 565
Quaker Oats 800 40
Ralston-Ralston Purina Group 600 53
Sara Lee 2,700 139
Seagram 2,100 74
Unilever 900 191
UST 1,000 31
Whitman 600 16
William Wrigley Jr 600 45
----------
3,200
----------
GAS/NATURAL GAS--0.2%
Coastal 600 37
Columbia Gas Systems 300 21
Consolidated Natural Gas 500 29
Eastern Enterprises 100 4
Enron 1,700 65
Nicor 300 11
Oneok 200 7
Pacific Enterprises 500 17
Peoples Energy 200 8
Sonat 500 25
Williams 900 42
----------
266
----------
GLASS PRODUCTS--0.1%
Corning 1,300 61
----------
HOME APPLIANCES--0.2%
Maytag 500 17
National Service Industries 300 13
PPG Industries 1,000 63
Sherwin Williams 1,000 29
Snap-On Tools 300 14
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
ASSET ALLOCATION FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Stanley Works 500 $ 22
Whirlpool 400 27
----------
185
----------
HOTELS & LODGING--0.1%
HFS* 900 67
Hilton Hotels 1,400 47
----------
114
----------
HOUSEHOLD FURNITURE & FIXTURES--0.0%
Masco 900 41
----------
HOUSEHOLD PRODUCTS--0.3%
Clorox 600 44
Gillette 3,100 268
----------
312
----------
INSURANCE--1.7%
Aetna 881 72
Allstate 2,490 200
American General 1,376 71
American International Group 3,937 406
Aon 950 50
Chubb 1,000 71
Cigna 400 75
Conseco 1,000 49
Equifax 800 25
General Re 500 99
Hartford Financial Services Group 700 60
Jefferson-Pilot 350 28
Lincoln National 600 42
Loew's 600 68
Marsh & McLennan 900 69
MBIA 200 25
MGIC Investment 700 40
Progressive 400 43
Safeco 700 37
St. Paul 500 41
Sunamerica 1,050 41
Torchmark 800 31
Travelers 3,535 241
United Healthcare 1,000 50
Unum 800 37
USF&G 600 14
----------
1,985
----------
JEWELRY, PRECIOUS METALS--0.0%
Jostens 200 5
----------
ASSET ALLOCATION FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
LEISURE--0.0%
Brunswick 600 $ 21
----------
LUMBER & WOOD PRODUCTS--0.0%
Louisiana-Pacific 600 15
----------
MACHINERY--1.9%
Aeroquip-Vickers 200 10
Applied Materials* 1,000 95
Baker Hughes 900 39
Black & Decker 500 19
Briggs & Stratton 100 5
Case Equipment 400 27
Caterpillar 2,100 113
Cincinnati Milacron 200 5
Crane 250 10
Cummins Engine 200 16
Deere 1,400 75
Dover 600 41
Dresser Industries 1,000 43
Emerson Electric 2,500 144
General Electric 18,300 1,246
Harnischfeger Industries 300 13
Ingersoll Rand 900 39
McDermott International 300 11
Nacco Industries, Cl A 5 1
Pall 700 15
Parker Hannifin 600 27
Tenneco 1,000 48
Timken 300 12
Tyco International 1,500 123
----------
2,177
----------
MEASURING DEVICES--0.1%
Honeywell 700 47
Johnson Controls 500 25
Millipore 200 10
Perkin Elmer 200 15
Tektronix 200 13
Thermo Electron* 800 32
----------
142
----------
MEDICAL PRODUCTS & SERVICES--0.6%
Bausch & Lomb 300 12
Baxter International 1,600 84
Becton Dickinson 700 34
Beverly Enterprises* 600 10
Biomet 600 14
Boston Scientific* 1,100 61
C.R. Bard 300 10
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
ASSET ALLOCATION FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Columbia/HCA Healthcare 3,705 $ 107
Guidant 800 45
Healthsouth Rehabilitation* 1,900 51
Humana* 900 21
Mallinckrodt 400 14
Manor Care 400 13
Medtronic 2,600 122
St. Jude Medical 550 19
Tenet Healthcare* 1,700 50
United States Surgical 400 12
----------
679
----------
METALS & MINING--0.0%
Cyprus AMAX Minerals 550 13
Freeport-McMoran Copper & Gold, Cl B 1,100 32
----------
45
----------
MISCELLANEOUS BUSINESS SERVICES--1.8%
3Com* 1,900 97
Adobe Systems 400 20
Autodesk 300 14
Automatic Data Processing 1,600 80
Cisco Systems* 3,700 270
Computer Associates International 2,075 149
Computer Sciences* 400 28
CUC International* 2,250 70
First Data 2,500 94
Microsoft* 6,700 886
Novell* 1,900 17
Oracle* 5,525 201
Parametric Technology* 700 31
Safety-Kleen 300 7
Shared Medical Systems 100 5
Sun Microsystems* 2,100 98
----------
2,067
----------
MISCELLANEOUS CONSUMER SERVICES--0.0%
Service International 1,300 42
----------
MULTI-INDUSTRY--0.2%
ITT* 700 47
Minnesota Mining & Manufacturing 2,300 213
----------
260
----------
OFFICE PRODUCTS & SUPPLIES--0.0%
Ikon Office Solutions 700 18
----------
OIL-DOMESTIC--0.4%
Ashland Oil 400 22
Atlantic Richfield 1,800 154
ASSET ALLOCATION FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Kerr-McGee 300 $ 21
Louisiana Land & Exploration 200 16
Pennzoil 300 24
Phillips Petroleum 1,500 77
Sun 392 17
Unocal 1,400 61
USX-Marathon Group 1,600 60
----------
452
----------
OIL-INTERNATIONAL--1.9%
Amerada Hess 500 31
Amoco 2,800 270
Chevron 3,700 308
Exxon 13,900 890
Mobil 4,400 326
Schlumberger 2,800 236
Texaco 3,000 184
----------
2,245
----------
PAPER & PAPER PRODUCTS--0.5%
Avery Dennison 600 24
Bemis 300 13
Boise Cascade 300 13
Champion International 500 30
Fort James 1,100 50
Georgia Pacific 500 52
International Paper 1,700 94
Kimberly Clark 3,132 153
Mead 300 22
Potlatch 200 10
Stone Container 600 9
Temple Inland 300 19
Union Camp 400 25
Westvaco 600 22
Weyerhaeuser 1,100 65
Willamette Industries 600 23
----------
624
----------
PETROLEUM & FUEL PRODUCTS--0.2%
Anadarko Petroleum 300 22
Apache 500 21
Burlington Resources 700 36
Helmerich & Payne 100 8
Occidental Petroleum 1,800 47
Oryx Energy* 600 15
Rowan* 500 18
Union Pacific Resources Group 1,386 36
Western Atlas* 300 26
----------
229
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
ASSET ALLOCATION FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
PETROLEUM REFINING--0.6%
Royal Dutch Petroleum 12,000 $ 666
----------
PHOTOGRAPHIC EQUIPMENT & SUPPLIES--0.2%
Eastman Kodak 1,800 117
Polaroid 300 15
Xerox 1,800 152
----------
284
----------
PRECIOUS METALS--0.1%
Barrick Gold 2,100 52
Battle Mountain Gold 1,300 9
Echo Bay Mines 800 5
Homestake Mining 800 12
Newmont Mining 909 41
Placer Dome Group 1,300 25
----------
144
----------
PRINTING & PUBLISHING--0.4%
American Greetings, Cl A 400 15
Deluxe 500 17
Dow Jones 500 23
Gannett 800 86
John H. Harland 200 5
Knight-Ridder 500 27
McGraw-Hill 600 41
Meredith 300 10
Moore 500 10
New York Times, Cl A 500 26
R.R. Donnelley & Sons 800 29
Time Warner 3,100 168
Times Mirror, Cl A 500 27
Tribune 700 37
----------
521
----------
PROFESSIONAL SERVICES--0.1%
Cognizant 900 37
Dun & Bradstreet 1,000 28
EG&G 300 6
----------
71
----------
RAILROADS--0.3%
Burlington Northern Santa Fe 843 81
CSX 1,200 70
Norfolk Southern 700 72
Union Pacific 1,400 88
----------
311
----------
ASSET ALLOCATION FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
REPAIR SERVICES--0.0%
Ryder System 400 $ 14
----------
RETAIL--1.9%
Albertson's 1,400 49
American Stores 1,500 37
Autozone* 800 24
Charming Shoppes* 600 4
Circuit City Stores 500 20
Costco* 1,200 45
CVS 900 51
Darden Restaurants 900 10
Dayton Hudson 1,200 72
Dillards Incorporated, Cl A 600 26
Federated Department Stores* 1,200 52
Gap 1,500 75
Giant Food, Cl A 300 10
Great Atlantic & Pacific Tea 200 6
Harcourt General 400 20
Hasbro 700 20
Home Depot 4,099 214
J.C. Penney 1,400 82
Kmart* 2,700 38
Kroger* 1,400 42
Limited 1,546 38
Longs Drug Stores 200 5
Lowe's 1,000 39
Marriott 700 50
Mattel 1,668 55
May Department Stores 1,300 71
McDonald's 3,900 186
Mercantile Stores 200 13
Nordstrom 400 26
Pep Boys-Manny, Moe & Jack 300 8
Rite Aid 700 39
Sears Roebuck 2,200 125
TJX 900 28
Toys `R' Us* 1,600 57
Wal-Mart Stores 12,700 465
Walgreen 2,800 72
Wendy's International 700 15
Winn Dixie Stores 800 28
Woolworth* 800 18
----------
2,235
----------
RUBBER & PLASTIC--0.3%
Armstrong World Industries 200 13
B.F. Goodrich 300 14
Cooper Tire & Rubber 400 11
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
ASSET ALLOCATION FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Goodyear Tire & Rubber 900 $ 62
Illinois Tool Works 1,400 70
Nike, Cl B 1,600 85
Reebok International* 300 15
Rubbermaid 800 20
Tupperware 300 8
----------
298
----------
SEMI-CONDUCTORS/INSTRUMENTS--1.1%
Advanced Micro Devices* 800 26
AMP 1,200 64
Intel 9,200 849
LSI Logic* 800 26
Micron Technology 1,200 42
National Semiconductor* 800 33
Rockwell International 1,200 76
Texas Instruments 1,100 149
----------
1,265
----------
SPECIALTY MACHINERY--0.1%
Cooper Industries 678 37
Westinghouse Electric 3,600 97
----------
134
----------
STEEL & STEEL WORKS--0.3%
Alcan Aluminum 1,300 45
Allegheny Teledyne 954 27
Aluminum Company of America 1,000 82
Armco* 600 4
Asarco 200 6
Bethlehem Steel* 600 6
Engelhard 800 17
Inco 900 23
Inland Steel Industries 300 7
Nucor 500 26
Phelps Dodge 300 23
Reynolds Metals 400 28
USX-U.S. Steel Group 500 17
Worthington Industries 500 10
----------
321
----------
TELEPHONES & TELECOMMUNICATION--2.4%
Airtouch Communications* 2,800 99
Alltel 1,000 35
Ameritech 3,100 206
AT&T 9,100 403
Bell Atlantic 4,289 345
BellSouth 5,500 254
Frontier 900 21
ASSET ALLOCATION FUND (CONTINUED)
DESCRIPTION SHARES/PAR(000) VALUE (000)
- --------------------------------------------------------------------------------
GTE 5,300 $ 240
Lucent Technologies 3,563 290
MCI Communications 3,800 112
Nextlevel Systems* 800 13
SBC Communications 5,067 311
Sprint 2,400 120
U.S. West 2,700 104
U.S. West Media Group* 3,400 76
Worldcom* 5,000 177
----------
2,806
----------
TRUCKING--0.0%
Caliber System 200 11
----------
WHOLESALE--0.1%
Cardinal Health 600 43
Fleming 200 4
Genuine Parts 1,050 32
Sigma Aldrich 600 20
SUPERVALU 300 12
Sysco 1,000 37
W.W. Grainger 300 27
----------
175
----------
TOTAL COMMON STOCKS
(Cost $29,299) 41,038
----------
COMMERCIAL PAPER--22.3%
Distribution Funding
5.604%, 11/17/97 $ 9,000 8,933
International Securitization (LOC: FNB Chicago)
5.560%, 10/17/97 9,000 8,976
Pooled Accounts Receivable Capital
5.552%, 10/01/97 8,000 7,999
----------
TOTAL COMMERCIAL PAPER
(Cost $25,913) 25,908
----------
U.S. TREASURY OBLIGATIONS--21.4%
U.S. Treasury Notes
5.875%, 11/15/05 5,187 5,090
6.500%, 10/15/06 19,369 19,781
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $24,136) 24,871
----------
RELATED PARTY MONEY MARKET FUNDS--8.8%
First American Government Obligations
Money Market (A) 5,116,131 5,116
First American Prime Obligations
Money Market (A) 5,126,760 5,127
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
ASSET ALLOCATION FUND (CONCLUDED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
TOTAL RELATED PARTY MONEY MARKET FUNDS
(Cost $10,243) $ 10,243
----------
REPURCHASE AGREEMENT--11.5%
Merrill Lynch
5.627%, dated 09/30/97, matures 10/01/97,
repurchase price $13,351,087 (collateralized
by U.S. Treasury Notes: total market
value $13,615,651) $ 13,349 13,349
----------
TOTAL REPURCHASE AGREEMENT
(Cost $13,349) 13,349
----------
TOTAL INVESTMENTS--99.3%
(Cost $102,940) 115,409
----------
OTHER ASSETS AND LIABILITIES, NET--0.7% (B) 739
----------
NET ASSETS:
Portfolio Shares--Institutional Class
($.0001 par value--2 billion authorized)
based on 8,326,478 outstanding shares 77,905
Portfolio Shares--Retail Class A
($.0001 par value--2 billion authorized)
based on 181,081 outstanding shares 2,037
Portfolio Shares--Retail Class B
($.0001 par value--2 billion authorized)
based on 381,132 outstanding shares 4,540
Undistributed net investment income 92
Accumulated net realized gain on investments 19,105
Net unrealized appreciation of investments 12,469
----------
TOTAL NET ASSETS--100.0% $ 116,148
----------
NET ASSET VALUE, OFFERING PRICE, AND
REDEMPTION PRICE PER SHARE--
INSTITUTIONAL CLASS $ 13.07
----------
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE--RETAIL CLASS A $ 13.08
MAXIMUM SALES CHARGE OF 4.50% (1) 0.62
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 13.70
----------
NET ASSET VALUE AND OFFERING PRICE
PER SHARE--RETAIL CLASS B (2) $ 13.01
----------
* Non-income producing security
(1) The offer price is calculated by dividing the net asset value by 1 minus the
maximum sales charge of 4.50%.
(2) Retail Class B has a contingent deferred sales charge. For a description of
possible redemption charge, see the notes to the financial statements.
(A) These money market funds are advised by U.S. Bank National Association who
also serves as Adviser for this Fund. See the Notes to the Financial
Statements for additional information.
(B) Other assets and liabilities representing greater than five percent of total
net assets include the following:
Cash collateral received for securities on loan $ 26,398
Payable upon return of securities on loan $(26,398)
Cl--Class
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
MBIA--Municipal Bond Insurance Association
BALANCED FUND
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
COMMON STOCKS--52.1%
AEROSPACE & DEFENSE--0.8%
Raytheon 69,900 $ 4,133
----------
APPAREL/TEXTILES--0.8%
Fruit of the Loom, Cl A* 139,800 3,932
----------
AUTOMOTIVE--1.2%
General Motors 87,000 5,824
----------
BANKS--4.2%
BankBoston 76,400 6,757
Chase Manhattan 60,500 7,139
Citicorp 51,100 6,844
----------
20,740
----------
CHEMICALS--2.5%
PPG Industries 103,400 6,482
W.R. Grace 78,900 5,809
----------
12,291
----------
COMMUNICATIONS EQUIPMENT--1.5%
Nokia, ADR 80,300 7,533
----------
COMPUTERS & SERVICES--4.7%
3Com* 138,300 7,088
IKON Office Solutions 220,000 5,624
IBM 66,700 7,066
Seagate Technology* 98,600 3,562
----------
23,340
----------
COMPUTER COMMUNICATION EQUIPMENT--0.6%
General Motors, Cl H 42,100 2,784
----------
COMPUTER SOFTWARE--0.8%
Computer Associates International 52,000 3,734
----------
CONTAINERS & PACKAGING--1.7%
Ball 117,100 4,076
Bemis 96,100 4,300
----------
8,376
----------
DRUGS--3.4%
American Home Products 92,100 6,723
Bristol-Myers Squibb 53,500 4,427
Pharmacia & Upjohn 151,400 5,526
----------
16,676
----------
FINANCIAL SERVICES--1.4%
American Express 35,600 2,915
Household International 34,500 3,905
----------
6,820
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
BALANCED FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO--3.7%
ConAgra 104,600 $ 6,904
Dole Food 89,500 4,044
Sara Lee 142,800 7,354
----------
18,302
----------
HOUSEHOLD PRODUCTS--0.3%
Tupperware 57,700 1,623
----------
INSURANCE--4.1%
Aetna 54,700 4,455
AMBAC 93,200 3,792
Cigna 24,200 4,507
General Re 18,300 3,632
TIG Holdings 114,800 3,996
----------
20,382
----------
LEISURE--1.3%
Brunswick 179,600 6,331
----------
MACHINERY--1.2%
Case Equipment 93,000 6,196
----------
MULTI-INDUSTRY--0.6%
Minnesota Mining & Manufacturing 30,800 2,849
----------
OIL-INTERNATIONAL--4.5%
Elf Aquitaine, ADR 87,100 5,808
Exxon 82,200 5,266
Mobil 64,100 4,743
Texaco 106,200 6,525
----------
22,342
----------
PETROLEUM REFINING--1.2%
Royal Dutch Petroleum 104,500 5,800
----------
RAILROADS--1.8%
Burlington Northern Santa Fe 56,100 5,421
Canadian Pacific 113,800 3,364
----------
8,785
----------
REAL ESTATE INVESTMENT TRUSTS--2.7%
Duke Realty Investments 128,000 2,920
Equity Residential Properties Trust 83,900 4,578
Simon Debartolo Group 180,600 5,960
----------
13,458
----------
RETAIL--2.2%
Sears Roebuck 75,300 4,287
Toys `R' Us* 185,800 6,596
----------
10,883
----------
BALANCED FUND (CONTINUED)
DESCRIPTION SHARES/PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
SPECIALTY CONSTRUCTION--1.2%
Masco 131,400 $ 6,020
----------
TELEPHONES & TELECOMMUNICATION--2.8%
Bell Atlantic 78,489 6,313
Century Telephone Enterprises 78,900 3,472
Deutsche Telekom, ADR 219,400 4,182
----------
13,967
----------
WHOLESALE--0.9%
W.W. Grainger 50,100 4,459
----------
TOTAL COMMON STOCKS
(Cost $176,928) 257,580
----------
U.S. TREASURY OBLIGATIONS--28.3%
U.S. Treasury Bond
7.125%, 02/15/23 $ 38,460 41,451
U.S. Treasury Notes
5.250%, 12/31/97 100 100
5.125%, 04/30/98 20,090 20,051
6.250%, 05/31/99 18,015 18,140
6.750%, 04/30/00 12,495 12,751
6.375%, 03/31/01 23,670 23,961
6.250%, 02/15/03 10,740 10,844
7.250%, 08/15/04 4,625 4,919
6.875%, 05/15/06 7,095 7,416
U.S. Treasury STRIPS
0.000%, 02/15/99 265 245
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $137,778) 139,878
----------
CORPORATE OBLIGATIONS--4.9%
Bear Stearns
6.560%, 06/20/00 6,780 6,831
Cigna
7.400%, 01/15/03 2,825 2,906
Comdisco
5.780%, 01/19/99 6,850 6,816
General Foods
6.000%, 06/15/01 860 846
Santander Financial Issuances
7.250%, 05/30/06 6,835 7,023
----------
TOTAL CORPORATE OBLIGATIONS
(Cost $24,049) 24,422
----------
OTHER MORTGAGE-BACKED OBLIGATIONS--5.4%
Drexel Burnham Lambert Trust CMO Trust S 2
9.000%, 08/01/18 282 287
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
BALANCED FUND (CONTINUED)
DESCRIPTION PAR (000)/SHARES VALUE (000)
- --------------------------------------------------------------------------------
General Electric Capital Mortgage 1994-11 A1
6.500%, 03/25/24 $ 1,023 $ 1,027
General Electric Capital Mortgage 1994-17 A6
7.000%, 05/25/24 2,675 2,684
GMAC Commercial Mortgage Securities 1997-C1
6.898%, 09/15/07 6,700 6,745
NAFCO Auto Trust
7.000%, 12/31/01 1,491 1,501
Merrill Lynch Mortgage Investors 1995-C3
7.088%, 12/26/25 7,400 7,553
Prudential Home Loan Mortgage 1992-36 A8
6.500%, 11/25/99 6,425 6,424
Residential Funding 1992-36 A2
5.700%, 11/25/07 193 192
----------
TOTAL OTHER MORTGAGE-BACKED OBLIGATIONS
(Cost $26,140) 26,413
----------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED
OBLIGATIONS--1.1%
FHLMC
6.000%, 11/15/08 2,700 2,601
FNMA
5.450%, 10/25/18 2,700 2,657
----------
TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-BACKED
OBLIGATIONS
(Cost $5,321) 5,258
----------
RELATED PARTY MONEY MARKET FUNDS--8.9%
First American Government
Obligations Fund (A) 22,155,987 22,156
First American Prime
Obligations Fund (A) 22,000,946 22,001
----------
TOTAL RELATED PARTY MONEY MARKET FUNDS
(Cost $44,157) 44,157
----------
TOTAL INVESTMENTS--100.7%
(Cost $414,373) 497,708
----------
OTHER ASSETS AND LIABILITIES, NET--(0.7%) (B) (3,605)
----------
BALANCED FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- -------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares--Institutional Class
($.0001 par value--2 billion authorized)
based on 27,092,341 outstanding shares $ 311,047
Portfolio Shares--Retail Class A
($.0001 par value--2 billion authorized)
based on 2,096,489 outstanding shares 24,273
Portfolio Shares--Retail Class B
($.0001 par value--2 billion authorized)
based on 2,845,117 outstanding shares 37,752
Undistributed net investment income 296
Accumulated net realized gain on investments 37,400
Net unrealized appreciation of investments 83,335
----------
TOTAL NET ASSETS--100.0% $ 494,103
----------
NET ASSET VALUE, OFFERING PRICE, AND
REDEMPTION PRICE PER SHARE--
INSTITUTIONAL CLASS $ 15.43
----------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE--RETAIL CLASS A $ 15.41
MAXIMUM SALES CHARGE OF 4.50% (1) 0.73
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 16.14
----------
NET ASSET VALUE AND OFFERING PRICE
PER SHARE--RETAIL CLASS B (2) $ 15.36
----------
* Non-income producing security
(1) The offer price is calculated by dividing the net asset value by 1 minus the
maximum sales charge of 4.50%.
(2) Retail Class B has a contingent deferred sales charge. For a description of
possible redemption charge, see the notes to the financial statements.
(A) These money market funds are advised by U.S. Bank National Association who
also serves as Adviser for this Fund. See the Notes to the Financial Statements
for additional information.
(B) Other assets and liabilities representing greater than five percent of total
net assets include the following:
Cash collateral received for securities on loan $ 130,242
Payable upon return of securities on loan $(130,242)
ADR--American Depository Receipt
AMBAC--American Municipal Bond Assurance Company
Cl--Class
CMO--Collateralized Mortgage Obligation
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
GMAC--General Motors Acceptance Corporation
STRIPS--Separately Trading of Registered Interest and Principal of Securities
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
REAL ESTATE SECURITES FUND
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS--93.2%
REAL ESTATE INVESTMENT TRUSTS--93.2%
HEALTHCARE FACILITIES--6.0%
Health & Retirement Property Trust 31,500 $ 595
Health Care Property Investors 20,000 775
Health Care REIT 24,000 660
National Health Investors 19,000 739
----------
2,769
----------
HOTELS--12.6%
Colonial Properties Trust 30,000 896
Felcor Suite Hotels 22,000 903
Hospitality Properties Trust 27,000 955
Patriot American Hospitality 35,000 1,116
RFS Hotel Investors 37,000 721
Starwood Lodging 21,000 1,206
----------
5,797
----------
HOUSING CONSTRUCTION--0.4%
Security Capital Group, Cl B* 5,000 172
----------
OFFICE/INDUSTRIAL--35.4%
Alexandria Real Estate Equities 30,000 857
Arden Realty Group 26,000 816
Bedford Property Investors 20,000 440
Boston Properties* 21,000 689
Cali Realty 22,000 916
CarrAmerica Realty 31,000 992
Crescent Operating* 2,500 50
Crescent Real Estate Equities 25,000 1,003
Duke Realty Investments 42,000 958
Highwoods Properties 20,000 707
Liberty Property Trust 34,600 932
Prentiss Properties Trust 27,000 780
Public Storage 26,000 770
Security Capital Industrial Trust 31,647 738
Shurgard Storage Centers 25,200 737
SL Green Realty* 25,000 647
Sovran Self Storage 25,000 787
Spieker Properties 22,000 892
Storage Trust 27,600 721
Storage USA 21,000 853
Weeks 30,000 983
----------
16,268
----------
REAL ESTATE--1.0%
CCA Prison Realty Trust 12,000 453
----------
RECREATION--0.7%
Golf Trust of America 12,000 324
----------
REAL ESTATE SECURITES FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
RESIDENTIAL--19.4%
Apartment Investment & Management 29,000 $ 1,048
Bay Apartment Communities 10,000 399
Chateau Communities 29,176 861
Equity Residential Properties Trust 30,250 1,651
Evans Withycombe Residential 29,800 805
Home Properties of New York 24,000 624
Merry Land & Investment 37,000 816
Mid-America Apartment Communities 20,000 594
Post Properties 7,100 282
Summit Properties 44,000 963
Sun Communities 24,000 861
----------
8,904
----------
RETAIL--17.7%
Bradley Real Estate 32,000 672
CBL & Associates Properties 30,900 801
Developers Diversified Realty 20,000 800
Excel Realty Trust 27,100 850
Federal Realty Investment Trust 30,000 756
JDN Realty 13,000 434
Kimco Realty 21,500 748
Macerich 25,000 722
Mid-America Realty Investments 38,900 413
Simon Debartolo Group 42,000 1,386
Taubman Centers 36,000 461
Wellsford Real Properties* 6,100 98
----------
8,141
----------
TOTAL COMMON STOCKS
(Cost $33,637) 42,828
----------
PREFERRED STOCKS--0.6%
Walden Residential Properties 10,000 256
----------
TOTAL PREFERRED STOCKS
(Cost $238) 256
----------
WARRANTS--0.0%
Walden Residential Properties* 10,000 14
----------
TOTAL WARRANTS
(Cost $12) 14
----------
RELATED PARTY MONEY MARKET FUNDS--5.5%
First American Government
Obligations Fund (A) 751,255 751
First American Prime Obligations
Fund (A) 1,750,334 1,750
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
REAL ESTATE SECURITES FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
TOTAL RELATED PARTY MONEY MARKET FUNDS
(Cost $2,501) $ 2,501
----------
TOTAL INVESTMENTS--99.3%
(Cost $36,388) 45,599
----------
OTHER ASSETS AND LIABILITIES, NET--0.7% (B) 325
----------
NET ASSETS:
Portfolio Shares--Institutional Class
($.0001 par value--2 billion authorized) based
on 2,701,235 outstanding shares 31,631
Portfolio Shares--Retail Class A
($.0001 par value--2 billion authorized)
based on 140,570 outstanding shares 1,809
Portfolio Shares--Retail Class B
($.0001 par value--2 billion authorized)
based on 223,313 outstanding shares 2,875
Accumulated net realized gain on investments 398
Net unrealized appreciation of investments 9,211
----------
TOTAL NET ASSETS--100.0% $ 45,924
----------
NET ASSET VALUE, OFFERING PRICE, AND
REDEMPTION PRICE PER SHARE--
INSTITUTIONAL CLASS $ 14.99
----------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE--RETAIL CLASS A $ 14.97
MAXIMUM SALES CHARGE OF 4.50% (1) 0.71
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 15.68
----------
NET ASSET VALUE AND OFFERING PRICE
PER SHARE--RETAIL CLASS B (2) $ 14.86
----------
* Non-income producing security.
(1) The offer price is calculated by dividing the net asset value by 1 minus the
maximum sales charge of 4.50%.
(2) Retail Class B has a contingent deferred sales charge. For a description of
possible redemption charge, see the notes to the financial statements.
(A) These money market funds are advised by U.S. Bank National Association who
also serves as Adviser for this Fund. See the Notes to the Financial Statements
for additional information.
(B) Other assets and liabilities representing greater than five percent of total
net assets include the following:
Cash collateral received for securities on loan $ 4,027
Payable upon return of securities on loan $(4,027)
EQUITY INCOME FUND
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS--77.9%
AUTOMOTIVE--1.1%
Ford Motor 93,400 $ 4,226
----------
BANKS--9.3%
Bank of New York 120,000 5,760
Barnett Banks 65,200 4,613
BB&T 35,000 1,870
CoreStates Financial 45,200 2,992
First Union 76,000 3,805
Mellon Bank 85,000 4,654
National City 155,800 9,591
Summit Bancorp 52,500 2,333
----------
35,618
----------
BEAUTY PRODUCTS--0.9%
Colgate-Palmolive 50,000 3,484
----------
CHEMICALS--2.1%
Dexter 45,800 1,835
E.I. du Pont de Nemours 98,600 6,070
----------
7,905
----------
DRUGS--7.2%
Abbott Laboratories 76,400 4,885
American Home Products 54,000 3,942
Bristol-Myers Squibb 50,000 4,137
Johnson & Johnson 75,800 4,368
Pfizer 47,400 2,847
Pharmacia & Upjohn 88,000 3,212
Schering Plough 86,000 4,429
----------
27,820
----------
ELECTRICAL SERVICES--4.4%
Cinergy 141,300 4,725
FPL Group 64,300 3,295
Houston Industries 71,200 1,549
Minnesota Power & Light 35,900 1,299
Texas Utilities 161,900 5,828
----------
16,696
----------
FINANCIAL SERVICES--3.1%
American Express 88,300 7,230
Beneficial 36,000 2,743
FNMA 45,000 2,115
----------
12,088
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
EQUITY INCOME FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO--5.2%
ConAgra 50,886 $ 3,358
PepsiCo 101,000 4,097
Philip Morris 180,000 7,481
RJR Nabisco 34,300 1,179
Sara Lee 77,700 4,002
----------
20,117
----------
GAS/NATURAL GAS--0.6%
Enron 56,700 2,183
----------
HOUSEHOLD PRODUCTS--1.4%
Newell 130,000 5,200
----------
INSURANCE--1.9%
IPC Holdings 131,300 3,873
Mid Ocean 55,000 3,486
----------
7,359
----------
MACHINERY--2.3%
Emerson Electric 75,000 4,322
General Electric 68,000 4,628
----------
8,950
----------
MARINE TRANSPORTATION--1.7%
Knightsbridge Tankers Limited 225,000 6,370
----------
MINING--1.0%
Great Northern Iron Ore Properties 57,700 3,668
----------
MISCELLANEOUS TRANSPORTATION--0.8%
Fleetwood Enterprises 87,000 2,920
----------
OIL-DOMESTIC--1.6%
Ashland Oil 75,000 4,078
Atlantic Richfield 24,000 2,051
----------
6,129
----------
OIL-INTERNATIONAL--7.1%
Amoco 101,500 9,782
Exxon 118,000 7,559
Mobil 132,600 9,812
----------
27,153
----------
PAPER & PAPER PRODUCTS--0.9%
Weyerhaeuser 60,000 3,562
----------
PETROLEUM & FUEL PRODUCTS--0.4%
Occidental Petroleum 59,000 1,530
----------
EQUITY INCOME FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
PETROLEUM REFINING--2.9%
Lyondell Petrochemical 292,168 $ 7,651
Royal Dutch Petroleum 64,000 3,552
----------
11,203
----------
PHOTOGRAPHIC EQUIPMENT & SUPPLIES--0.5%
Eastman Kodak 30,000 1,948
----------
PRINTING & PUBLISHING--1.5%
American Greetings, Cl A 82,000 3,024
Moore 142,000 2,698
----------
5,722
----------
RAILROADS--2.0%
Burlington Northern Santa Fe 29,000 2,802
Union Pacific 80,000 5,010
----------
7,812
----------
REAL ESTATE INVESTMENT TRUSTS--9.3%
Crescent Real Estate Equity 137,600 5,521
Healthcare Realty Trust 178,400 5,073
Manufactured Home Communities 176,100 4,579
Meditrust 50,000 2,075
National Golf Properties 230,000 7,533
Simon Debartolo Group 184,000 6,072
Weeks 144,400 4,729
----------
35,582
----------
RETAIL--4.5%
Intimate Brands 410,000 9,558
J.C. Penney 110,300 6,425
May Department Stores 24,800 1,352
----------
17,335
----------
TELEPHONES & TELECOMMUNICATION--4.2%
AT&T 193,000 8,552
Deutsche Telecom, ADR 275,000 5,242
Sprint 50,000 2,500
----------
16,294
----------
TOTAL COMMON STOCKS
(Cost $181,762) 298,874
----------
PREFERRED CONVERTIBLE STOCKS--10.8%
AUTOMOTIVE--2.1%
Ford Motor, Series A, $4.20 55,300 8,205
----------
BROADCASTING, NEWSPAPERS & ADVERTISING--1.1%
TCI Pacific Communications 32,000 4,020
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
EQUITY INCOME FUND (CONTINUED)
DESCRIPTION SHARES/PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
ELECTRICAL SERVICES--1.0%
Houston Industries 70,000 $ 3,640
----------
FINANCIAL SERVICES--2.4%
Advanta, Cl B 123,000 3,813
FirstPlus Financial Group* 100,000 5,475
----------
9,288
----------
INSURANCE--0.9%
Aetna 45,000 3,502
----------
TELEPHONES & TELECOMMUNICATION--2.3%
Airtouch Communications 211,500 9,050
----------
COMPUTERS & SERVICES--1.0%
IKON Office Products 58,800 3,793
----------
TOTAL PREFERRED CONVERTIBLE STOCKS
(Cost $36,186) 41,498
----------
CONVERTIBLE BONDS--3.5%
3Com, 14.4665 Shares
10.250%, 11/01/01 (B) $ 3,430 5,201
Hometown Buffet, 73.2600 Shares
7.000%, 12/01/02 4,000 4,175
Saks Holdings, 24.0601 Shares
5.500%, 09/15/06 2,400 2,040
Tenet Healthcare, 25.9403 Shares
6.000%, 12/01/05 1,670 2,010
----------
TOTAL CONVERTIBLE BONDS
(Cost $12,904) 13,426
----------
RELATED PARTY MONEY MARKET FUNDS--7.5%
First American Government
Obligations Fund (A) 12,727,790 12,728
First American Prime
Obligations Fund (A) 16,215,805 16,216
----------
TOTAL RELATED PARTY MONEY MARKET FUNDS
(Cost $28,944) 28,944
----------
TOTAL INVESTMENTS--99.7%
(Cost $259,796) 382,742
----------
OTHER ASSETS AND LIABILITIES, NET--0.3% (C) 1,072
----------
EQUITY INCOME FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares--Institutional Class
($.0001 par value--2 billion authorized) based
on 23,562,347 outstanding shares $ 228,575
Portfolio Shares--Retail Class A
($.0001 par value--2 billion authorized) based
on 463,864 outstanding shares 5,856
Portfolio Shares--Retail Class B
($.0001 par value--2 billion authorized) based
on 423,601 outstanding shares 5,141
Undistributed net investment income 311
Accumulated net realized gain on investments 20,985
Net unrealized appreciation of investments 122,946
----------
TOTAL NET ASSETS--100.0% $ 383,814
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--INSTITUTIONAL CLASS $ 15.70
----------
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE--RETAIL CLASS A $ 15.69
MAXIMUM SALES CHARGE OF 4.50% (1) 0.74
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 16.43
----------
NET ASSET VALUE AND OFFERING PRICE PER
SHARE--RETAIL CLASS B (2) $ 15.62
----------
* Non-income producing security.
(1) The offer price is calculated by dividing the net asset value by 1 minus the
maximum sales charge of 4.50%.
(2) Retail Class B has a contingent deferred sales charge. For a description of
possible redemption charge, see the notes to the financial statements.
(A) These money market funds are advised by U.S. Bank National Association who
also serves as Adviser for this Fund. See the Notes to the Financial Statements
for additional information.
(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."This
security has been determined to be liquid under guidelines established by the
Board of Directors.
(C) Other assets and liabilities representing greater than five percent of total
net assets include the following:
Cash collateral received for securities on loan $ 57,385
Payable upon return of securities on loan $(57,385)
ADR--American Depository Receipt
Cl--Class
FNMA--Federal National Mortgage Association
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
EQUITY INDEX FUND
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS--96.9%
AEROSPACE & DEFENSE--0.5%
Lockheed Martin 15,227 $ 1,624
Raytheon 18,600 1,100
----------
2,724
----------
AGRICULTURE--0.1%
Pioneer Hi-Bred International 6,500 591
----------
AIR TRANSPORTATION--0.5%
AMR* 7,200 797
Delta Air Lines 5,800 546
Federal Express* 9,000 720
Southwest Airlines 11,500 367
U.S. Air Group* 6,200 257
----------
2,687
----------
AIRCRAFT--1.6%
Allied Signal 44,600 1,895
Boeing 78,366 4,266
General Dynamics 4,900 427
Northrop 5,300 643
Textron 13,000 845
United Technologies 18,700 1,515
----------
9,591
----------
APPAREL/TEXTILES--0.2%
Fruit of the Loom, Cl A* 6,000 169
Liz Claiborne 5,600 308
Reebok International* 4,400 214
Russell 2,900 85
Springs Industries, Cl A 1,600 84
V.F 5,000 463
----------
1,323
----------
AUTOMOTIVE--2.1%
Chrysler 54,200 1,995
Dana 8,100 400
Eaton 6,100 563
Echlin 4,900 172
Fleetwood Enterprises 2,800 94
Ford Motor 93,800 4,244
General Motors 57,500 3,849
Navistar International* 5,800 160
Paccar 6,090 341
TRW 9,900 543
----------
12,361
----------
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
BANKS--8.5%
Banc One 45,313 $ 2,529
Bank of New York 30,500 1,464
BankAmerica 55,900 4,098
BankBoston 11,600 1,026
Bankers Trust New York 7,700 943
Barnett Banks 15,700 1,111
Chase Manhattan 33,996 4,012
Citicorp 36,500 4,889
Comerica 8,300 655
CoreStates Financial 16,300 1,079
Fifth Third Bancorp 12,500 817
First Chicago NBD 24,664 1,856
First Union 45,100 2,258
Fleet Financial Group 20,700 1,357
Golden West Financial 4,500 404
H.F. Ahmanson 7,900 449
Huntington Bancshares 12,600 454
J.P. Morgan 14,500 1,648
KeyCorp 17,600 1,120
MBNA 26,350 1,067
Mellon Bank 20,400 1,117
National City 17,400 1,071
NationsBank 57,524 3,559
Norwest 29,500 1,807
PNC Bank 25,400 1,240
Republic New York 4,300 489
State Street 12,800 780
Suntrust Banks 17,400 1,182
U.S. Bancorp 19,282 1,861
Wachovia 12,700 914
Washington Mutual 19,760 1,378
Wells Fargo 7,000 1,925
----------
50,559
----------
BEAUTY PRODUCTS--1.8%
Alberto-Culver, Cl B 4,400 134
Avon Products 10,400 645
Colgate-Palmolive 23,300 1,624
Ecolab 5,100 248
International Flavors & Fragrances 8,600 421
Procter & Gamble 106,800 7,376
----------
10,448
----------
BROADCASTING, NEWSPAPERS & ADVERTISING--0.5%
Clear Channel Communications* 7,000 454
Comcast, Cl A 27,600 711
Interpublic Group 9,700 498
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Tele-Communications, Cl A* 33,336 $ 683
Viacom, Cl B* 27,845 881
----------
3,227
----------
BUILDING & CONSTRUCTION--0.3%
Centex 2,300 134
Fluor 6,600 354
Foster Wheeler 3,200 141
Halliburton 19,900 1,035
Kaufman & Broad Home 3,100 67
Owens Corning 4,200 153
Pulte 1,700 65
----------
1,949
----------
CHEMICALS--2.3%
Air Products & Chemicals 8,600 713
B.F. Goodrich 4,300 195
Dow Chemical 18,400 1,669
E.I. du Pont de Nemours 89,000 5,479
Eastman Chemical 6,175 383
FMC* 2,900 257
Great Lakes Chemical 4,700 232
Hercules 7,900 393
Monsanto 46,600 1,817
Morton International 11,000 390
Nalco Chemical 5,300 212
Praxair 12,400 635
Rohm & Haas 4,900 470
Solutia* 9,180 184
Union Carbide 9,900 482
W.R. Grace 5,700 420
----------
13,931
----------
COMMUNICATIONS EQUIPMENT--1.2%
Andrew* 7,200 189
DSC Communications* 9,300 251
Harris 6,200 284
ITT Industries 9,300 309
Motorola 46,900 3,371
Northern Telecom 20,500 2,131
Scientific-Atlanta 6,100 138
Tellabs* 14,200 731
----------
7,404
----------
COMPUTERS & SERVICES--4.4%
Apple Computer* 10,000 217
Bay Networks* 15,700 606
Cabletron Systems* 12,300 394
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Ceridian* 6,300 $ 233
Compaq Computer* 57,975 4,334
Data General* 3,700 98
Dell Computer* 26,400 2,557
Digital Equipment* 12,000 520
EMC* 19,400 1,132
Hewlett Packard 80,100 5,572
IBM 78,300 8,295
Pitney Bowes 11,500 957
Seagate Technology* 19,300 697
Silicon Graphics* 13,908 365
Tandy 8,560 288
Unisys* 13,800 211
----------
26,476
----------
CONSUMER PRODUCTS--0.0%
Stride Rite 3,900 53
Tupperware 4,900 138
----------
191
----------
CONTAINERS & PACKAGING--0.2%
Ball 2,400 84
Crown Cork & Seal 10,100 466
Newell 12,500 500
Owens-Illinois* 10,900 370
----------
1,420
----------
DRUGS--8.3%
Abbott Laboratories 61,000 3,900
Allergan 5,200 188
Alza, Cl A* 6,700 194
American Home Products 50,800 3,708
Amgen* 20,900 1,002
Bristol-Myers Squibb 78,800 6,521
Eli Lilly 43,788 5,274
Johnson & Johnson 105,000 6,051
Merck 95,200 9,514
Pfizer 101,800 6,114
Pharmacia & Upjohn 40,025 1,461
Schering Plough 57,700 2,972
Warner Lambert 21,400 2,888
----------
49,787
----------
ELECTRICAL SERVICES--2.3%
American Electric Power 14,900 678
Baltimore Gas & Electric 11,600 322
Carolina Power & Light 11,900 428
Central & South West 16,700 371
Cinergy 12,473 417
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Consolidated Edison New York 18,500 $ 629
Dominion Resources of Virginia 14,500 549
DTE Energy 11,400 347
Duke Power 28,306 1,399
Edison International 32,300 816
Entergy 18,700 487
FPL Group 14,400 738
GPU 9,500 341
Houston Industries 21,843 475
Niagara Mohawk Power* 11,400 109
Northern States Power 5,400 269
Ohio Edison 12,000 281
Pacificorp 23,300 521
PECO Energy 17,500 410
PG&E 34,600 802
PP&L Resources 12,900 282
Public Service Enterprise Group 18,300 471
Southern 53,700 1,212
Texas Utilities 18,937 682
Unicom 17,100 400
Union Electric Power 8,100 311
----------
13,747
----------
ENTERTAINMENT--0.8%
Harrah's Entertainment* 8,100 182
King World Productions 2,900 125
Mirage Resorts* 13,900 419
Walt Disney 53,200 4,289
----------
5,015
----------
ENVIRONMENTAL SERVICES--0.3%
Browning Ferris Industries 16,800 639
Waste Management 35,753 1,249
----------
1,888
----------
FINANCIAL SERVICES--3.2%
American Express 37,300 3,054
Beneficial 4,200 320
Charles Schwab 20,700 740
Countrywide Credit Industries 8,200 299
Equifax 11,900 374
FHLMC 54,800 1,932
FNMA 83,700 3,934
Green Tree Financial 10,700 503
H & R Block 8,200 317
Household International 8,400 951
ITT* 9,200 623
Merrill Lynch 26,100 1,936
Morgan Stanley, Dean Witter, Discover 45,147 2,441
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Providian Financial* 7,400 $ 294
Salomon Brothers 8,500 639
Transamerica 5,223 520
----------
18,877
----------
FOOD, BEVERAGE & TOBACCO--7.6%
Adolph Coors, Cl B 2,900 110
Anheuser Busch 39,100 1,764
Archer Daniels Midland 44,181 1,058
Brown Forman, Cl B 5,400 268
Campbell Soup 36,700 1,798
Coca Cola 195,500 11,913
ConAgra 18,800 1,241
CPC International 11,300 1,047
Fortune Brands 13,600 458
General Mills 12,700 876
H.J. Heinz 28,950 1,337
Hershey Foods 11,300 638
Kellogg 32,800 1,382
PepsiCo 120,800 4,900
Philip Morris 191,500 7,959
Quaker Oats 10,800 544
Ralston-Ralston Purina Group 8,400 743
Sara Lee 37,900 1,952
Seagram 29,200 1,029
Unilever 12,600 2,679
UST 14,500 443
Whitman 8,000 218
William Wrigley Jr 9,200 693
----------
45,050
----------
GAS/NATURAL GAS--0.6%
Coastal 8,300 508
Columbia Gas Systems 4,400 308
Consolidated Natural Gas 7,500 436
Eastern Enterprises 1,600 60
Enron 24,100 928
Nicor 3,900 146
Oneok 2,200 72
Pacific Enterprises 6,600 224
Peoples Energy 2,800 106
Sonat 6,800 346
Williams 12,450 583
----------
3,717
----------
GLASS PRODUCTS--0.1%
Corning 18,100 855
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
HOME APPLIANCES--0.5%
Maytag 7,700 $ 263
National Service Industries 3,600 158
PPG Industries 14,200 890
Raychem 3,400 287
Sherwin Williams 13,600 400
Snap-On Tools 4,850 223
Thomas & Betts 4,300 235
Whirlpool 5,900 391
----------
2,847
----------
HOTELS & LODGING--0.4%
HFS* 12,500 930
Hilton Hotels 19,700 664
Marriott Hotels 10,000 711
----------
2,305
----------
HOUSEHOLD FURNITURE & FIXTURES--0.1%
Masco 12,700 582
----------
HOUSEHOLD PRODUCTS--0.8%
Clorox 8,100 600
Gillette 43,900 3,789
Stanley Works 7,000 301
----------
4,690
----------
INSURANCE--4.6%
Aetna 11,890 968
Allstate 34,750 2,793
American General 19,067 989
American International Group 55,537 5,731
Aon 13,100 693
Chubb 13,800 981
Cigna 5,800 1,080
Conseco 14,400 703
General Re 6,400 1,270
Hartford Financial Services Group 9,300 800
Jefferson-Pilot 5,575 440
Lincoln National 8,100 564
Loew's 9,100 1,028
Marsh & McLennan 13,100 1,004
MBIA 3,400 426
MGIC Investment 9,300 533
Progressive 5,600 600
Safeco 10,000 530
St. Paul 6,600 538
Sunamerica 15,400 603
Torchmark 11,000 432
Travelers 50,582 3,452
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
United Healthcare 14,700 $ 735
Unum 11,000 502
USF&G 8,700 200
----------
27,595
----------
LEISURE--0.1%
Brunswick 7,800 275
Jostens 3,100 84
----------
359
----------
LUMBER & WOOD PRODUCTS--0.0%
Louisiana Pacific 8,600 215
----------
MACHINERY--5.2%
Aeroquip-Vickers 2,200 108
Applied Materials* 14,300 1,362
Baker Hughes 13,000 569
Black & Decker 7,400 276
Briggs & Stratton 2,000 99
Case Equipment 5,900 393
Caterpillar 29,800 1,607
Cincinnati Milacron 3,100 83
Crane 3,600 148
Cummins Engine 3,000 234
Deere 20,100 1,080
Dover 8,800 597
Dresser Industries 13,900 598
Emerson Electric 35,100 2,023
General Electric 258,600 17,601
General Signal 4,000 173
Harnischfeger Industries 3,900 167
Ingersoll Rand 12,700 547
McDermott International 4,300 157
Nacco Industries, Cl A 630 74
Pall 10,000 216
Parker Hannifin 8,775 395
Tenneco 13,500 646
Timken 4,900 196
Tyco International 21,000 1,723
----------
31,072
----------
MEASURING DEVICES--0.4%
Honeywell 10,000 672
Johnson Controls 6,600 327
Millipore 3,400 167
Perkin Elmer 3,500 256
Tektronix 2,600 175
Thermo Electron* 11,800 472
----------
2,069
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
MEDICAL PRODUCTS & SERVICES--1.6%
Bausch & Lomb 4,400 $ 178
Baxter International 21,900 1,144
Becton Dickinson 9,600 460
Beverly Enterprises* 8,700 151
Biomet 8,800 211
Boston Scientific* 15,400 850
C.R. Bard 4,500 153
Columbia/HCA Healthcare 52,605 1,512
Guidant 11,600 650
Healthsouth Rehabilitation* 27,000 721
Humana* 12,800 305
Mallinckrodt 5,800 209
Manor Care 5,000 166
Medtronic 37,600 1,767
St. Jude Medical 7,250 254
Tenet Healthcare* 23,800 693
United States Surgical 5,800 169
----------
9,593
----------
METALS & MINING--0.1%
Cyprus AMAX Minerals 7,350 176
Freeport-McMoran Copper & Gold, Cl B 15,800 455
----------
631
----------
MISCELLANEOUS BUSINESS SERVICES--4.9%
3Com* 26,200 1,343
Adobe Systems 5,600 282
Autodesk 3,800 172
Automatic Data Processing 23,100 1,155
Cisco Systems* 52,300 3,821
Computer Associates International 28,625 2,056
Computer Sciences* 6,000 424
CUC International* 32,175 997
First Data 35,400 1,330
Microsoft* 94,500 12,504
Novell* 27,300 245
Oracle Systems* 77,287 2,816
Parametric Technology* 10,100 446
Safety Kleen 4,600 110
Shared Medical Systems 2,000 106
Sun Microsystems* 29,100 1,362
----------
29,169
----------
MISCELLANEOUS CONSUMER SERVICES--0.1%
Service International 18,900 608
----------
OFFICE PRODUCTS & SUPPLIES--0.1%
Ikon Office Solutions 10,400 266
----------
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
OIL-DOMESTIC--1.0%
Ashland Oil 5,900 $ 321
Atlantic Richfield 25,400 2,170
Kerr-McGee 3,800 261
Louisiana Land & Exploration 2,700 211
Pennzoil 3,700 295
Phillips Petroleum 20,800 1,074
Sun 5,774 253
Unocal 19,700 852
USX-Marathon Group 22,700 844
----------
6,281
----------
OIL-INTERNATIONAL--4.7%
Amerada Hess 7,300 450
Amoco 39,000 3,759
Chevron 51,500 4,284
Exxon 195,800 12,543
Mobil 62,000 4,588
Texaco 41,600 2,556
----------
28,180
----------
PAPER & PAPER PRODUCTS--2.0%
Avery Dennison 8,200 328
Bemis 4,200 188
Boise Cascade 3,800 160
Champion International 7,500 457
Fort James 14,900 683
Georgia Pacific 7,200 751
International Paper 23,700 1,305
Kimberly Clark 44,100 2,158
Mead 4,100 296
Minnesota Mining & Manufacturing 32,800 3,034
Potlatch 2,300 116
Stone Container 7,800 121
Temple Inland 4,400 282
Union Camp 5,500 339
Westvaco 8,000 288
Weyerhaeuser 15,600 926
Willamette Industries 8,800 337
----------
11,769
----------
PETROLEUM & FUEL PRODUCTS--1.1%
Anadarko Petroleum 4,700 338
Apache 7,100 304
Burlington Resources 9,800 503
Helmerich & Payne 2,000 160
Occidental Petroleum 26,000 674
Oryx Energy* 8,300 211
Rowan* 6,800 242
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Schlumberger 38,900 $ 3,275
Union Pacific Resources Group 20,043 525
Western Atlas* 4,200 370
----------
6,602
----------
PETROLEUM REFINING--1.6%
Royal Dutch Petroleum 169,100 9,385
----------
PHOTOGRAPHIC EQUIPMENT & SUPPLIES--0.7%
Eastman Kodak 25,900 1,682
Polaroid 3,500 179
Xerox 25,500 2,147
----------
4,008
----------
PRECIOUS METALS--0.3%
Barrick Gold 29,400 728
Battle Mountain Gold 18,100 130
Echo Bay Mines 11,000 63
Homestake Mining 11,600 178
Newmont Mining 12,302 553
Placer Dome Group 18,900 361
----------
2,013
----------
PRINTING & PUBLISHING--1.2%
American Greetings, Cl A 5,900 218
Deluxe 6,500 218
Dow Jones 7,500 351
Gannett 11,200 1,209
John H. Harland 2,400 55
Knight-Ridder 7,200 393
McGraw-Hill 7,900 535
Meredith 4,200 139
Moore 6,900 131
New York Times, Cl A 7,500 394
R.R. Donnelley & Sons 11,500 410
Time Warner 44,100 2,390
Times Mirror, Cl A 7,500 412
Tribune 9,700 517
----------
7,372
----------
PROFESSIONAL SERVICES--0.2%
Cognizant 13,200 538
Dun & Bradstreet 13,500 383
EG&G 3,600 74
----------
995
----------
RAILROADS--0.7%
Burlington Northern Santa Fe 12,108 1,170
CSX 17,200 1,006
Norfolk Southern 9,900 1,022
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Union Pacific 19,500 $ 1,221
----------
4,419
----------
REPAIR SERVICES--0.0%
Ryder System 6,000 216
----------
RETAIL--5.2%
Albertson's 19,800 691
American Stores 21,500 524
Autozone* 11,900 357
Charming Shoppes* 8,300 51
Circuit City Stores 7,700 310
Costco* 16,600 625
CVS 13,200 751
Darden Restaurants 12,100 140
Dayton Hudson 17,100 1,025
Dillards Incorporated, Cl A 9,000 394
Federated Department Stores* 16,400 707
Gap 21,600 1,081
Giant Food, Cl A 4,700 153
Great Atlantic & Pacific Tea 3,000 95
Harcourt General 5,600 278
Hasbro 10,050 283
Home Depot 57,399 2,992
J.C. Penney 19,500 1,136
Kmart* 38,200 535
Kroger* 20,000 604
Limited 21,392 523
Longs Drug Stores 3,100 83
Lowe's 13,600 529
Mattel 22,981 761
May Department Stores 18,700 1,019
McDonald's 54,400 2,591
Mercantile Stores 2,900 183
Nordstrom 6,300 402
Pep Boys-Manny, Moe & Jack 4,800 131
Rite Aid 9,700 538
Sears Roebuck 30,900 1,759
TJX 12,300 376
Toys `R' Us* 22,500 799
Wal-Mart Stores 178,600 6,541
Walgreen 38,800 994
Wendy's International 10,400 221
Winn Dixie Stores 11,700 415
Woolworth* 10,600 235
----------
30,832
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
RUBBER & PLASTIC--0.6%
Armstrong World Industries 3,200 $ 215
Cooper Tire & Rubber 6,200 165
Goodyear Tire & Rubber 12,300 846
Illinois Tool Works 19,600 980
Nike, Cl B 22,800 1,208
Rubbermaid 11,800 302
----------
3,716
----------
SEMI-CONDUCTORS/INSTRUMENTS--3.0%
Advanced Micro Devices* 11,100 361
AMP 17,352 929
Intel 129,100 11,918
LSI Logic* 11,200 360
Micron Technology* 16,600 576
National Semiconductor* 11,100 455
Rockwell International 16,800 1,057
Texas Instruments 15,100 2,040
----------
17,696
----------
SPECIALTY MACHINERY--0.3%
Cooper Industries 9,328 504
Westinghouse Electric 50,100 1,356
----------
1,860
----------
STEEL & STEEL WORKS--0.8%
Alcan Aluminium 17,900 622
Allegheny Teledyne 13,822 396
Aluminum Company of America 13,700 1,123
Armco* 8,400 50
Asarco 3,400 109
Bethlehem Steel* 8,800 91
Engelhard 11,412 246
Inco 13,100 328
Inland Steel Industries 3,900 85
Nucor 6,900 364
Phelps Dodge 4,900 380
Reynolds Metals 5,800 411
USX-U.S. Steel Group 6,700 233
Worthington Industries 7,650 155
----------
4,593
----------
TELEPHONES & TELECOMMUNICATION--6.7%
Airtouch Communications* 39,700 1,407
Alltel 14,700 507
Ameritech 43,300 2,879
AT&T 128,100 5,676
Bell Atlantic 61,165 4,920
BellSouth 78,300 3,621
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION SHARES/PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Frontier 12,900 $ 297
GTE 75,300 3,417
Lucent Technologies 50,475 4,107
MCI Communications 54,200 1,592
Nextlevel Systems* 11,600 194
SBC Communications 71,916 4,414
Sprint 33,900 1,695
U.S. West 37,800 1,455
U.S. West Media Group* 47,800 1,067
WorldCom* 70,400 2,490
----------
39,738
----------
TRANSPORTATION--0.1%
Laidlaw 25,900 387
----------
TRUCKING--0.0%
Caliber System 3,100 168
----------
WHOLESALE--0.4%
Cardinal Health 8,600 611
Fleming 3,000 55
Genuine Parts 14,175 437
Sigma Aldrich 7,900 260
SUPERVALU 4,700 184
Sysco 13,800 510
W.W. Grainger 4,100 365
----------
2,422
----------
TOTAL COMMON STOCKS
(Cost $367,028) 578,471
----------
TREASURY BILL--0.2%
U.S. Treasury Bill
0.000%, 12/11/97 (A) 1,000 990
----------
TOTAL TREASURY BILL
(Cost $990) 990
----------
RELATED PARTY MONEY MARKET FUND--2.7%
First American Prime
Obligations Fund (B) 16,247,849 16,248
----------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $16,248) 16,248
----------
TOTAL INVESTMENTS--99.8%
(Cost $384,266) 595,709
----------
OTHER ASSETS AND LIABILITIES, NET--0.2% (C) 1,259
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
EQUITY INDEX FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares--Institutional Class
($.0001 par value--2 billion authorized) based
on 26,863,917 outstanding shares $ 336,165
Portfolio Shares--Retail Class A
($.0001 par value--2 billion authorized) based
on 769,703 outstanding shares 12,031
Portfolio Shares--Retail Class B
($.0001 par value--2 billion authorized) based
on 1,148,323 outstanding shares 18,946
Undistributed net investment income 185
Accumulated net realized gain on investments 18,246
Net unrealized appreciation of investments and
open futures contracts 211,395
----------
TOTAL NET ASSETS--100.0% $ 596,968
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--INSTITUTIONAL CLASS $ 20.74
----------
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE--RETAIL CLASS A $ 20.76
MAXIMUM SALES CHARGE OF 4.50% (1) 0.98
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 21.74
----------
NET ASSET VALUE AND OFFERING PRICE PER
SHARE--RETAIL CLASS B (2) $ 20.67
----------
* 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) Security has been deposited as initial margin on open futures contracts.
(B) This money market fund is advised by U.S. Bank National Association who also
serves as Adviser for this Fund. See the Notes to the Financial Statements for
additional information.
(C) Other assets and liabilities representing greater than five percent of total
net assets include the following:
Cash collateral received for securities on loan $ 207,420
Payable upon return of securities on loan $(207,420)
Cl--Class
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
MBIA--Municipal Bond Insurance Association
STOCK FUND
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS--88.7%
AEROSPACE & DEFENSE--1.4%
Raytheon 291,000 $ 17,205
----------
APPAREL/TEXTILES--1.3%
Fruit of the Loom, Cl A* 554,900 15,607
----------
AUTOMOTIVE--2.0%
General Motors 364,100 24,372
----------
BANKS--7.2%
BankBoston 319,000 28,212
Chase Manhattan 252,700 29,819
Citicorp 213,600 28,609
----------
86,640
----------
CHEMICALS--4.2%
PPG Industries 415,900 26,072
W.R. Grace 328,400 24,178
----------
50,250
----------
COMMUNICATIONS EQUIPMENT--2.4%
Nokia, ADR 311,200 29,194
----------
COMPUTER COMMUNICATIONS EQUIPMENT--3.3%
General Motors, Cl H 176,400 11,664
3Com* 556,550 28,523
----------
40,187
----------
COMPUTERS & SERVICES--3.7%
IBM 279,500 29,609
Seagate Technology* 397,200 14,349
----------
43,958
----------
COMPUTER SOFTWARE--1.3%
Computer Associates International 217,400 15,612
----------
CONTAINERS & PACKAGING--2.9%
Ball 489,200 17,030
Bemis 399,900 17,895
----------
34,925
----------
DRUGS--5.6%
American Home Products 361,500 26,389
Bristol-Myers Squibb 223,200 18,470
Pharmacia & Upjohn 611,800 22,331
----------
67,190
----------
FINANCIAL SERVICES--2.4%
American Express 148,700 12,175
Household International 144,300 16,333
----------
28,508
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
STOCK FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO--6.3%
ConAgra 420,400 $ 27,746
Dole Food 374,100 16,905
Sara Lee 597,000 30,745
----------
75,396
----------
HOUSEHOLD PRODUCTS--0.5%
Tupperware 224,100 6,303
----------
INSURANCE--7.1%
Aetna 228,600 18,617
AMBAC 389,200 15,836
Cigna 100,900 18,793
General Re 76,600 15,205
TIG Holdings 480,200 16,717
----------
85,168
----------
LEISURE--2.2%
Brunswick 748,100 26,370
----------
MACHINERY--2.2%
Case Equipment 388,200 25,864
----------
MULTI-INDUSTRY--1.0%
Minnesota Mining & Manufacturing 128,000 11,840
----------
OFFICE PRODUCTS & SUPPLIES--1.9%
IKON Office Solutions 883,500 22,584
----------
OIL-INTERNATIONAL--7.8%
Elf Aquitaine, ADR 362,700 24,188
Exxon 343,800 22,025
Mobil 268,400 19,862
Texaco 444,000 27,278
----------
93,353
----------
PETROLEUM REFINING--2.0%
Royal Dutch Petroleum 436,200 24,209
----------
RAILROADS--3.1%
Burlington Northern Santa Fe 234,500 22,659
Canadian Pacific 475,200 14,048
----------
36,707
----------
REAL ESTATE INVESTMENT TRUSTS--4.7%
Duke Realty Investments 534,100 12,184
Equity Residential Properties Trust 349,500 19,070
Simon Debartolo Group 754,872 24,911
----------
56,165
----------
STOCK FUND (CONTINUED)
DESCRIPTION SHARES/PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
RETAIL--3.8%
Sears Roebuck 313,700 $ 17,861
Toys `R' Us* 776,500 27,566
----------
45,427
----------
SPECIALTY CONSTRUCTION--2.0%
Masco 524,100 24,010
----------
TELEPHONES & TELECOMMUNICATION--4.9%
Bell Atlantic 327,510 26,344
Century Telephone Enterprises 330,400 14,538
Deutsche Telekom, ADR 914,600 17,435
----------
58,317
----------
WHOLESALE--1.5%
W.W. Grainger 208,400 18,548
----------
TOTAL COMMON STOCKS
(Cost $782,427) 1,063,909
----------
RELATED PARTY MONEY MARKET FUNDS--9.4%
First American Government
Obligations Fund (A) 55,732,766 55,733
First American Prime
Obligations Fund (A) 56,315,398 56,315
----------
TOTAL RELATED PARTY MONEY MARKET FUNDS
(Cost $112,048) 112,048
----------
REPURCHASE AGREEMENT--2.1%
Merrill Lynch
5.627%, dated 09/30/97, matures 10/01/97,
repurchase price $25,557,994 (collateralized
by U.S. Treasury Notes: total market
value $26,070,162) $ 25,554 25,554
----------
TOTAL REPURCHASE AGREEMENT
(Cost $25,555) 25,554
----------
TOTAL INVESTMENTS--100.2%
(Cost $920,030) 1,201,511
----------
OTHER ASSETS AND LIABILITIES, NET--(0.2%) (B) (2,449)
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
STOCK FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares--Institutional Class
($.0001 par value--2 billion authorized) based
on 38,093,463 outstanding shares $ 682,907
Portfolio Shares--Retail Class A
($.0001 par value--2 billion authorized) based
on 1,753,223 outstanding shares 36,602
Portfolio Shares--Retail Class B
($.0001 par value--2 billion authorized) based
on 1,870,800 outstanding shares 40,752
Undistributed net investment income 245
Accumulated net realized gain on investments 157,075
Net unrealized appreciation of investments 281,481
----------
TOTAL NET ASSETS--100.0% $1,199,062
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--INSTITUTIONAL CLASS $ 28.75
----------
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE--RETAIL CLASS A $ 28.74
MAXIMUM SALES CHARGE OF 4.50% (1) 1.35
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 30.09
----------
NET ASSET VALUE AND OFFERING PRICE PER
SHARE--RETAIL CLASS B (2) $ 28.55
----------
* Non-income producing security
(1) The offer price is calculated by dividing the net asset value by 1 minus the
maximum sales charge of 4.50%.
(2) Retail Class B has a contingent deferred sales charge. For a description of
possible redemption charge, see the notes to the financial statements.
(A) These money market funds are advised by U.S. Bank National Association who
also serves as Adviser for this Fund. See the Notes to the Financial Statements
for additional information.
(B) Other assets and liabilities representing greater than five percent of total
net assets include the following:
Cash collateral received for securities on loan $ 271,318
Payable upon return of securities on loan $(271,318)
ADR--American Depository Receipt
AMBAC--American Municipal Bond Assurance Company
Cl--Class
DIVERSIFIED GROWTH FUND
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS--91.7%
ADVERTISING--2.2%
Cox Communications* 247,000 $ 6,808
Tele-Communications, Cl A* 403,988 8,282
----------
15,090
----------
AIR TRANSPORTATION--0.2%
Southwest Airlines 37,250 1,190
----------
AIRCRAFT--1.3%
Boeing 173,750 9,458
----------
AUTOMOTIVE--2.1%
Ford Motor 328,000 14,842
----------
BANKS--10.0%
Bank of New York 143,000 6,864
BankAmerica 200,000 14,662
Citicorp 81,200 10,876
First American Bank 132,850 7,132
Mellon Bank 145,800 7,983
Signet Banking 276,000 14,973
Washington Mutual 108,000 7,533
----------
70,023
----------
CHEMICALS--2.2%
E.I. du Pont de Nemours 254,000 15,637
----------
COMMUNICATIONS EQUIPMENT--4.3%
ADC Telecommunications* 32,000 1,040
Ascend Communications* 226,100 7,320
Nokia, ADR 230,000 21,577
----------
29,937
----------
COMPUTERS & SERVICES--4.2%
3Com* 35,250 1,807
Cisco Systems* 275,500 20,129
EMC* 22,800 1,331
Seagate Technology* 182,000 6,575
----------
29,842
----------
DRUGS--7.3%
Abbott Laboratories 224,000 14,322
Bristol-Myers Squibb 7,100 588
Eli Lilly 9,300 1,120
Johnson & Johnson 242,150 13,954
Merck 8,900 889
Pfizer 303,650 18,238
Schering Plough 18,200 937
Watson Pharmaceuticals* 19,000 1,135
----------
51,183
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
DIVERSIFIED GROWTH FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
ELECTRICAL SERVICES--1.2%
Texas Utilities 229,000 $ 8,244
----------
ENERGY & POWER--1.0%
Thermo Electron* 181,000 7,240
----------
FINANCIAL SERVICES--5.4%
American Express 163,400 13,378
FNMA 374,700 17,611
Morgan Stanley, Dean Witter, Discover 132,550 7,166
----------
38,155
----------
FOOD, BEVERAGE & TOBACCO--4.9%
PepsiCo 276,000 11,195
Philip Morris 312,000 12,967
Sara Lee 194,000 9,991
----------
34,153
----------
GAS/NATURAL GAS--1.5%
Enron 270,000 10,395
----------
GLASS PRODUCTS--1.1%
Corning 160,000 7,560
----------
HOUSEHOLD PRODUCTS--1.8%
Newell 310,000 12,400
----------
INSURANCE--0.9%
United Healthcare 128,000 6,400
----------
MACHINERY--3.1%
Case Equipment 164,000 10,926
Dresser Industries 26,200 1,127
General Electric 147,000 10,005
----------
22,058
----------
MEDICAL PRODUCTS & SERVICES--5.3%
Biochem Pharmaceuticals* 580,000 18,270
Columbia/HCA Healthcare 312,000 8,970
Medtronic 220,000 10,340
----------
37,580
----------
MISCELLANEOUS BUSINESS SERVICES--5.3%
First Data 134,000 5,033
Microsoft* 81,800 10,823
Oracle* 443,774 16,170
Sungard Data Systems* 227,700 5,522
----------
37,548
----------
MISCELLANEOUS CONSUMER SERVICES--1.1%
Accustaff* 240,000 7,560
----------
DIVERSIFIED GROWTH FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
OIL-INTERNATIONAL--6.1%
Amoco 126,000 $ 12,143
Exxon 210,340 13,475
Mobil 234,400 17,346
----------
42,964
----------
PAPER & PAPER PRODUCTS--2.2%
Kimberly Clark 150,000 7,341
Weyerhaeuser 138,500 8,223
----------
15,564
----------
PETROLEUM & FUEL PRODUCTS--1.8%
Diamond Offshore Drilling 22,500 1,242
Reading & Bates* 40,700 1,692
Schlumberger 113,200 9,530
----------
12,464
----------
RAILROADS--1.2%
Union Pacific 139,000 8,705
----------
REAL ESTATE INVESTMENT TRUSTS--2.9%
National Golf Properties 159,000 5,207
Simon Debartolo Group 451,260 14,892
----------
20,099
----------
RETAIL--4.4%
Autozone* 352,000 10,560
Intimate Brands 487,000 11,353
McDonald's 190,000 9,049
----------
30,962
----------
SEMI-CONDUCTORS/INSTRUMENTS--2.8%
Intel 213,000 19,663
----------
SERVICES-PREPACKAGED SOFTWARE--1.1%
Peoplesoft* 126,000 7,528
----------
TELEPHONES & TELECOMMUNICATION--2.7%
Airtouch Communications* 234,600 8,314
L.M. Ericsson Telephone, ADR 227,200 10,891
----------
19,205
----------
WHOLESALE--0.1%
Motorola 9,100 654
----------
TOTAL COMMON STOCKS
(Cost $362,810) 644,303
----------
PREFERRED STOCKS--1.8%
Airtouch Communications 284,800 12,657
----------
TOTAL PREFERRED STOCKS
(Cost $11,640) 12,657
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
DIVERSIFIED GROWTH FUND (CONCLUDED)
DESCRIPTION PAR (000)/SHARES VALUE (000)
- --------------------------------------------------------------------------------
CONVERTIBLE BONDS--3.1%
3Com, 14.4665 Shares
10.250%, 11/01/01 $ 7,500 $ 11,372
Danka Business, 34.3348 Shares
6.750%, 04/01/02 6,600 10,494
----------
TOTAL CONVERTIBLE BONDS
(Cost $18,324) 21,866
----------
RELATED PARTY MONEY MARKET FUND--3.2%
First American Prime
Obligations Fund (A) 22,446,987 22,447
----------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $22,447) 22,447
----------
TOTAL INVESTMENTS--99.8%
(Cost $415,221) 701,273
----------
OTHER ASSETS AND LIABILITIES, NET--0.2% (B) 1,382
----------
NET ASSETS:
Portfolio Shares--Institutional Class
($.0001 par value--2 billion authorized) based
on 38,611,657 outstanding shares 346,636
Portfolio Shares--Retail Class A
($.0001 par value--2 billion authorized) based
on 681,691 outstanding shares 8,738
Portfolio Shares--Retail Class B
($.0001 par value--2 billion authorized) based
on 543,043 outstanding shares 6,943
Undistributed net investment income 109
Accumulated net realized gain on investments 54,177
Net unrealized appreciation of investments 286,052
----------
TOTAL NET ASSETS--100.0% $ 702,655
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--INSTITUTIONAL CLASS $ 17.64
----------
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE--RETAIL CLASS A $ 17.63
MAXIMUM SALES CHARGE OF 4.50% (1) 0.83
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 18.46
----------
NET ASSET VALUE AND OFFERING PRICE PER
SHARE--RETAIL CLASS B (2) $ 17.47
----------
* Non-income producing security
(1) The offer price is calculated by dividing the net asset value by 1 minus the
maximum sales charge of 4.50%.
(2) Retail Class B has a contingent deferred sales charge. For a description of
possible redemption charge, see the notes to the financial statements.
(A) This money market fund is advised by U.S. Bank National Association who also
serves as Adviser for this Fund. See the Notes to the Financial Statements for
additional information.
(B) Other assets and liabilities representing greater than five percent of total
net assets include the following:
Cash collateral received for securities on loan $ 195,251
Payable upon return of securities on loan $(195,251)
ADR--American Depository Receipt
Cl--Class
FNMA--Federal National Mortgage Association
SPECIAL EQUITY FUND
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS--97.5%
ADVERTISING--1.1%
NextLevel Systems* 380,900 $ 6,380
----------
APPAREL/TEXTILES--4.1%
Fila Holdings, ADR 286,300 8,857
Fruit of the Loom, Cl A* 534,500 15,033
----------
23,890
----------
APPLIANCES--2.3%
American Standard* 324,500 13,021
----------
AUTOMOTIVE--1.5%
Tower Automotive* 190,400 8,568
----------
BANKS--2.1%
Washington Mutual 171,420 11,956
----------
CHEMICALS--7.9%
Airgas* 571,100 9,673
Borden 589,800 5,382
H.B. Fuller 191,100 10,355
Millenium Chemicals 390,600 8,593
W.R. Grace 161,600 11,898
----------
45,901
----------
COMPUTERS & SERVICES--6.5%
Ceridian* 238,000 8,806
IKON Office Solutions 572,500 14,634
Micron Electronics* 810,800 14,189
----------
37,629
----------
ELECTRICAL SERVICES--3.1%
DPL 381,600 9,349
PG&E 381,800 8,853
----------
18,202
----------
ENTERTAINMENT--1.5%
Grand Casinos* 570,500 8,736
----------
ENVIRONMENTAL SERVICES--1.6%
Browning Ferris Industries 248,300 9,451
----------
FINANCIAL SERVICES--4.1%
Advanta, Cl B 401,500 10,941
Firstplus Financial Group* 229,000 12,853
----------
23,794
----------
FOOD, BEVERAGE & TOBACCO--6.1%
Canandaigua Wine, Cl A* 238,900 11,258
Dole Food 286,100 12,928
International Multifoods 376,500 11,177
----------
35,363
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
SPECIAL EQUITY FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
INSURANCE--2.6%
IPC Holdings 238,400 $ 7,033
Nationwide Financial Services 286,300 7,981
----------
15,014
----------
MACHINERY--2.0%
Black & Decker 316,600 11,793
----------
MEDICAL PRODUCTS & SERVICES--3.2%
Integrated Health Services 305,700 10,222
Trigon Healthcare* 324,900 8,062
----------
18,284
----------
METALS & MINING--3.3%
IMC Global 285,900 10,078
Potash of Saskatchewan 114,500 8,988
----------
19,066
----------
MISCELLANEOUS BUSINESS SERVICES--2.3%
Olsten 706,100 13,107
----------
OIL-DOMESTIC--2.2%
USX-Marathon Group 342,900 12,752
----------
PETROLEUM & FUEL PRODUCTS--6.6%
Kerr-McGee 191,100 13,150
Oryx Energy* 476,400 12,118
Santa Fe International 286,100 13,304
----------
38,572
----------
PETROLEUM REFINING--1.8%
Lyondell Petrochemical 400,300 10,483
----------
PRINTING & PUBLISHING--1.9%
American Greetings, Cl A 304,300 11,221
----------
REAL ESTATE INVESTMENT TRUSTS--6.3%
Equity Office Properties Trust 190,900 6,479
Glimcher Realty Trust 381,500 8,751
Simon DeBartolo Group 410,300 13,540
Trizec Hahn 314,800 8,126
----------
36,896
----------
RETAIL--14.2%
Apple South 525,000 10,106
Brinker International* 935,100 16,656
Darden Restaurants 764,600 8,841
Department 56* 381,800 11,048
Lone Star Steakhouse & Saloon* 620,000 12,942
PETsMART* 1,050,100 10,895
Saks Holdings* 572,400 11,949
----------
82,437
----------
SPECIAL EQUITY FUND (CONTINUED)
DESCRIPTION SHARES/CONTRACTS VALUE (000)
- --------------------------------------------------------------------------------
RUBBER & PLASTIC--2.4%
Premark International 315,400 $ 10,093
Tupperware 138,200 3,887
----------
13,980
----------
SEMI-CONDUCTORS/INSTRUMENTS--1.2%
Atmel* 190,900 6,956
----------
SPECIALTY CONSTRUCTION--1.5%
Oakwood Homes 314,900 8,935
----------
STEEL & STEEL WORKS--1.9%
Century Aluminum 290,000 5,111
J & L Specialty Steel 457,200 6,144
----------
11,255
----------
TELEPHONES & TELECOMMUNICATION--2.2%
Century Telephone Enterprises 286,200 12,593
----------
TOTAL COMMON STOCKS
(Cost $451,558) 566,235
----------
OPTIONS--0.9%
Standard & Poors Mid-Cap 400 Index,
October 350 Put 3,000 5,400
----------
TOTAL OPTIONS
(Cost $5,757) 5,400
----------
RELATED PARTY MONEY MARKET FUND--1.3%
First American Prime
Obligations Fund (A) 7,521,459 7,521
----------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $7,521) 7,521
----------
TOTAL INVESTMENTS--99.7%
(Cost $464,836) 579,156
----------
OTHER ASSETS AND LIABILITIES, NET--0.3% 2,008
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
SPECIAL EQUITY FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares--Institutional Class
($.0001 par value--2 billion authorized) based
on 21,036,357 outstanding shares $ 353,595
Portfolio Shares--Retail Class A
($.0001 par value--2 billion authorized) based
on 1,455,137 outstanding shares 26,449
Portfolio Shares--Retail Class B
($.0001 par value--2 billion authorized) based
on 1,529,714 outstanding shares 29,619
Undistributed net investment income 150
Accumulated net realized gain on investments 57,031
Net unrealized appreciation of investments 114,320
----------
TOTAL NET ASSETS--100.0% $ 581,164
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--INSTITUTIONAL CLASS $ 24.21
----------
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE--RETAIL CLASS A $ 24.19
MAXIMUM SALES CHARGE OF 4.50% (1) 1.14
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 25.33
----------
NET ASSET VALUE AND OFFERING PRICE PER
SHARE--RETAIL CLASS B (2) $ 23.96
----------
* Non-income producing security
(1) The offer price is calculated by dividing the net asset value by 1 minus the
maximum sales charge of 4.50%.
(2) Retail Class B has a contingent deferred sales charge. For a description of
possible redemption charge, see the notes to the financial statements.
(A) This money market fund is advised by U.S. Bank National Association who also
serve as Adviser for this Fund. See the Notes to the Financial Statements for
additional information.
ADR--American Depository Receipt
Cl--Class
REGIONAL EQUITY FUND
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS--81.5%
COMMON STOCKS-UNAFFILIATED ISSUERS--78.3%
AUTOMOTIVE--5.2%
Dura Automotive Systems* 163,900 $ 5,163
Deflecta-Shield* 207,900 1,949
Tower Automotive* 340,000 15,300
----------
22,412
----------
BANKS--7.3%
Community First Bankshares 350,200 16,985
TCF Financial 246,900 14,428
----------
31,413
----------
BATTERIES & BATTERY SYSTEMS--0.5%
Bolder Technologies* 141,600 1,982
----------
BROADCASTING, NEWSPAPERS & ADVERTISING--0.9%
Lodgenet Entertainment* 275,000 3,644
----------
CHEMICALS--1.1%
W.H. Brady 149,500 4,672
----------
COMMUNICATIONS EQUIPMENT--3.3%
Communications Systems 440,700 9,145
Transcrypt International* 235,000 5,111
----------
14,256
----------
COMPUTERS & SERVICES--3.2%
Digi International* 331,300 4,721
Valmont Industries 427,200 9,105
----------
13,826
----------
DRUGS--1.9%
Lifecore Biomedical* 459,500 8,271
----------
ENTERTAINMENT--1.0%
Grand Casinos* 290,000 4,441
----------
FOOD, BEVERAGE & TOBACCO--3.3%
International Multifoods 207,900 6,172
Michael Foods 302,600 7,754
----------
13,926
----------
GAS/NATURAL GAS--1.9%
Western Gas Resources 379,800 8,237
----------
INSURANCE--3.7%
Amerin* 350,100 10,065
ARM Financial Group 27,500 655
MMI 187,300 4,940
----------
15,660
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
REGIONAL EQUITY FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
MACHINERY--15.8%
Alliant Techsystems* 81,200 $ 5,232
Applied Power 230,300 14,495
Baker Hughes 121,012 5,294
BMC Industries 187,100 5,952
Check Technology* 147,500 719
Donaldson 241,100 11,573
Idex 218,100 7,497
Pentair 250,000 9,219
SPX 130,000 7,621
----------
67,602
----------
MEDICAL PRODUCTS & SERVICES--3.4%
Angeion* 368,500 1,889
ATS Medical* 193,750 1,138
CNS* 279,000 2,337
Orphan Medical* 242,000 1,755
Dynamic Healthcare Technologies* 291,100 1,583
Empi* 246,700 5,921
----------
14,623
----------
METALS & MINING--3.2%
Titanium Metals* 150,000 5,587
Varlen 204,600 8,082
----------
13,669
----------
MISCELLANEOUS BUSINESS SERVICES--5.6%
ACX Technologies* 164,100 4,369
MAPICS* 256,200 3,331
National Computer Systems 453,000 16,025
Summit Medical Systems* 197,700 457
----------
24,182
----------
MISCELLANEOUS CONSUMER SERVICES--2.4%
Appliance Recycling Centers of America* 44,975 129
Regis 394,400 9,959
----------
10,088
----------
PETROLEUM & FUEL PRODUCTS--0.8%
St. Mary Land & Exploration 77,200 3,503
----------
PRINTING & PUBLISHING--3.0%
Merrill 281,000 12,926
----------
REAL ESTATE--0.2%
LaSalle Partners* 25,000 875
----------
REGIONAL EQUITY FUND (CONTINUED)
DESCRIPTION SHARES/PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
RETAIL--6.0%
Buffets* 440,700 $ 4,765
Department 56* 316,100 9,147
Fingerhut 520,900 11,720
----------
25,632
----------
SEMI-CONDUCTORS/INSTRUMENTS--1.6%
Hutchinson Technology* 198,400 6,659
----------
WHOLESALE--3.0%
A.M. Castle 173,450 4,510
Ballantyne of Omaha* 298,500 5,746
Hawkins Chemical 263,105 2,565
----------
12,821
----------
TOTAL COMMON STOCKS-UNAFFILIATED ISSUERS
(Cost $208,714) 335,320
----------
REPURCHASE AGREEMENT--3.2%
Merrill Lynch
5.627%, dated 09/30/97, matures 10/01/97,
repurchase price $13,910,545 (collateralized
by U.S. Treasury Notes: total market
value $14,189,684) $ 13,908 13,908
----------
TOTAL REPURCHASE AGREEMENT
(Cost $13,908) 13,908
----------
TOTAL INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS
(Cost $222,622) 349,228
----------
RELATED PARTY MONEY MARKET FUNDS--8.5%
First American Government
Obligations Fund (A) 18,090,356 18,090
First American Prime
Obligations Fund (A) 18,101,198 18,101
----------
TOTAL RELATED PARTY MONEY MARKET FUNDS
(Cost $36,191) 36,191
----------
INVESTMENTS IN COMMON STOCK OF AFFILIATES--11.3%
Aetrium* (B) 686,000 17,064
Alternate Postal Delivery* (B) 236,500 473
Mosaix* (B) 604,800 6,464
Norstan* (B) 536,300 11,530
Onelink Communications* (B) 328,900 432
Premis* (B) 152,200 333
Rehabilicare* (B) 259,300 972
Sport-Haley* (B) 298,000 4,470
TSI (B) 715,200 6,705
----------
TOTAL INVESTMENTS IN COMMON STOCK OF AFFILIATES
(Cost $29,713) 48,443
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
REGIONAL EQUITY FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--101.3%
(Cost $288,526) $ 433,862
----------
OTHER ASSETS AND LIABILITIES, NET--(1.3%)(C) (5,495)
----------
NET ASSETS:
Portfolio Shares--Institutional Class
($.0001 par value--2 billion authorized) based on
15,153,019 outstanding shares 214,710
Portfolio Shares--Retail Class A
($.0001 par value--2 billion authorized) based on
1,629,280 outstanding shares 24,116
Portfolio Shares--Retail Class B
($.0001 par value--2 billion authorized) based on
1,746,718 outstanding shares 28,968
Accumulated net realized gain on investments 15,237
Net unrealized appreciation of investments 145,336
----------
TOTAL NET ASSETS--100.0% $ 428,367
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--INSTITUTIONAL CLASS $ 23.16
----------
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE--RETAIL CLASS A $ 23.12
MAXIMUM SALES CHARGE OF 4.50% (1) 1.09
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 24.21
----------
NET ASSET VALUE AND OFFERING PRICE PER
SHARE--RETAIL CLASS B (2) $ 22.72
----------
* Non-income producing security
(1) The offer price is calculated by dividing the net asset value by 1 minus the
maximum sales charge of 4.50%.
(2) Retail Class B has a contingent deferred sales charge. For a description of
possible redemption charge, see the notes to the financial statements.
(A) These money market funds are advised by U.S. Bank National Association who
also serve as Adviser for the Fund. See the Notes to the Financial Statements
for additional information.
(B) Investments represent 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 period ended September 30, 1997.
(C) Other assets and liabilities representing greater than five percent of total
net assets include the following:
Cash collateral received for securities on loan $ 62,639
Payable upon return of securities on loan $(62,639)
The activity for investments in Common Stock of Affiliates is as follows:
Shares at Shares at Realized
Description 09/30/96 09/30/97 Difference Dividends Gains/Losses
- ----------- --------- --------- ---------- --------- ------------
Aequitrion
Medical/
Nellcor 453,900 -- (453,900) $ -- $2,892,542
Aetrium 700,400 686,000 (14,400) -- 73,808
Alternate Postal
Delivery 241,500 236,500 (5,000) -- (12,500)
Appliance
Recycling
Centers 265,400 44,975+ (220,425) -- (497,245)
Audio King 280,200 -- (280,200) -- (419,407)
Dura Automotive
Systems 130,100 163,900+ 33,800 -- 22,983
Onelink
Communications/
Marketlink 411,800 328,900 (82,900) -- (152,266)
Mosaix/
Digital Systems 424,500 604,800 180,300 -- 25,400
Norstan 547,600 536,300 (11,300) -- 94,638
Premis 107,800 152,200 44,400 -- (69,727)
Rehabilicare 424,500 259,300 (165,200) -- 102,744
Sport Haley 278,700 298,000 19,300 -- 26,363
TSI 730,200 715,200 (15,000) 71,895 93,750
--------- --------- ----------- -------- ----------
4,996,600 4,026,075 (970,525) $71,895 $2,181,083
+ At September 30, 1997, these securities were not considered common stock of
affiliates.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
EMERGING GROWTH FUND
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS--93.7%
AEROSPACE & DEFENSE--3.4%
Remec* 67,500 $ 2,464
Tracor* 96,000 2,952
----------
5,416
----------
AIRCRAFT--2.2%
BE Aerospace* 94,000 3,384
----------
APPAREL/TEXTILES--1.3%
Culp 29,000 602
Hirsch International, Cl A* 77,000 1,362
----------
1,964
----------
AUTOMOTIVE--2.1%
Tower Automotive* 78,000 3,510
----------
BANKS--1.4%
Bank United, Cl A 3,000 133
Bay View Capital 77,000 2,108
----------
2,241
----------
BATTERIES & BATTERY SYSTEMS--1.0%
Bolder Technologies* 115,000 1,610
----------
BROADCASTING, NEWSPAPERS & ADVERTISING--2.9%
Getty Communications, ADR* 105,000 1,942
NTL* 69,200 1,825
Pricellular, Cl A* 81,444 809
----------
4,576
----------
BUILDING & CONSTRUCTION--0.4%
Crossman Communities* 30,000 679
----------
CHEMICALS--1.6%
Cambrex 55,500 2,588
----------
COMMUNICATIONS EQUIPMENT--5.8%
Checkpoint Systems* 90,000 1,316
Communications Systems 90,000 1,867
CTC Communications* 100,000 812
Harmonic Lite* 63,000 1,032
Medialink Worldwide* 160,000 2,580
Ultrak* 130,000 1,592
----------
9,199
----------
COMPUTERS & SERVICES--4.5%
Accent Color Sciences* 142,000 790
Apex PC Solutions* 65,000 2,462
HCIA* 20,000 270
HMT Technology* 95,000 1,490
Imnet Systems* 53,200 1,430
EMERGING GROWTH FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Mackie Designs* 65,000 $ 617
----------
7,059
----------
DRUGS--0.8%
Idexx Laboratories* 75,000 1,256
----------
ENERGY & POWER--1.3%
Calenergy* 60,000 1,995
----------
FOOD, BEVERAGE & TOBACCO--1.3%
Consolidated Cigar Holdings* 50,000 2,044
----------
HOME APPLIANCES--0.2%
Molten Metal Technology* 42,000 231
----------
INSURANCE--7.3%
Amerin* 119,000 3,421
ARM Financial Group 12,300 293
Healthcare Recoveries* 80,000 1,800
Meadowbrook Insurance Group 16,300 394
United Payors & United Providers* 100,000 1,725
Vesta Insurance Group 67,000 3,819
----------
11,452
----------
LEASING & RENTING--1.3%
Renters Choice* 90,000 2,045
----------
LEISURE--0.8%
T-HQ* 100,000 1,194
----------
MACHINERY--1.8%
Electric Fuel* 70,500 639
Shaw Group* 99,500 2,183
----------
2,822
----------
MEASURING DEVICES--1.0%
Cyberonics* 100,000 1,612
----------
MEDICAL PRODUCTS & SERVICES--8.8%
ATS Medical* 160,900 945
Cardima* 85,000 494
Closure Medical* 70,000 2,415
Conceptus* 110,300 779
Heska* 154,000 2,194
Medical Alliance* 76,000 304
Nitinol Medical Technologies* 134,000 1,909
Qiagen* 45,000 2,092
Quorum Health Group* 112,500 2,749
----------
13,881
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
EMERGING GROWTH FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
METALWORKING, MACHINERY, & EQUIPMENT--1.7%
Greenfield Industries 70,000 $ 2,012
Wolverine Tube* 20,000 627
----------
2,639
----------
MISCELLANEOUS BUSINESS SERVICES--11.9%
BA Merchant Services* 28,500 527
CCC Information Services Group* 60,000 1,275
Crystal Systems Solutions* 60,000 1,605
Dynamic Healthcare Technologies* 150,000 816
Engineering Animation* 16,000 610
Harbinger* 20,000 728
J.D. Edwards & Company* 10,400 348
Keane* 65,000 2,064
ONTRACK Data International* 75,000 1,744
Pegasystems* 30,000 911
QAD* 25,000 466
QuadraMed* 133,000 2,294
RWD Technologies* 25,000 575
Spatial Technology* 94,200 224
Staffmark* 120,000 4,575
----------
18,762
----------
MISCELLANEOUS MANUFACTURING--0.5%
Special Metals* 40,000 750
----------
OIL-DOMESTIC--3.9%
Cairn Energy USA* 175,000 2,428
Petroleum Geo Services, ADR* 55,000 3,719
----------
6,147
----------
PETROLEUM & FUEL PRODUCTS--2.5%
Global Industries* 75,000 2,991
Hanover Compressor* 41,000 1,005
----------
3,996
----------
PROFESSIONAL SERVICES--0.6%
Firearms Training Systems* 75,000 469
Precision Response* 70,000 543
----------
1,012
----------
REAL ESTATE INVESTMENT TRUSTS--1.5%
Alexandria Real Estate Equities 54,600 1,560
Golf Trust of America 32,000 864
----------
2,424
----------
RETAIL--8.9%
BAB Holdings* 175,000 372
Bombay* 150,000 1,153
Buffets* 146,250 1,581
EMERGING GROWTH FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Cooker Restaurant 130,000 $ 1,357
Eagle Hardware & Garden* 170,000 3,347
St. John Knits 60,000 2,696
The Dress Barn* 80,000 1,920
Tuesday Morning* 70,000 1,649
----------
14,075
----------
SEMI-CONDUCTORS/INSTRUMENTS--2.6%
Advanced Energy Industries* 100,000 2,831
Aetrium* 54,000 1,343
----------
4,174
----------
SERVICES-PREPACKAGED SOFTWARE--4.4%
BTG* 150,000 2,138
Hyperion Software* 53,000 1,653
National Instruments* 44,000 2,041
Platinum Technology* 55,000 1,183
----------
7,015
----------
TELEPHONES & TELECOMMUNICATION--2.2%
Brooks Fiber Properties* 32,000 1,494
Lightbridge* 77,000 1,251
Metro One Telecommunications* 80,000 730
----------
3,475
----------
WATER UTILITIES--0.1%
Waterlink* 10,000 188
----------
WHOLESALE--1.7%
H.T.E.* 85,000 1,286
Neuromedical Systems* 65,000 333
Scheid Vineyards* 100,000 1,113
----------
2,732
----------
TOTAL COMMON STOCKS
(Cost $106,121) 148,147
----------
PREFERRED STOCK--0.1%
Network Imaging 26,000 198
----------
TOTAL PREFERRED STOCK
(Cost $526) 198
----------
RELATED PARTY MONEY MARKET FUNDS--6.9%
First American Government
Obligations Fund (A) 3,968,000 3,968
First American Prime
Obligations Fund (A) 6,925,801 6,926
----------
TOTAL RELATED PARTY MONEY MARKET FUNDS
(Cost $10,894) 10,894
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
EMERGING GROWTH FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
RIGHTS--0.0%
Metrocall 38,011 $ --
----------
TOTAL RIGHTS
(Cost $0) --
----------
TOTAL INVESTMENTS--100.7%
(Cost $117,541) 159,239
----------
OTHER ASSETS AND LIABILITIES, NET--(0.7%) (B) (1,099)
----------
NET ASSETS:
Portfolio Shares--Institutional Class
($.0001 par value--2 billion authorized) based
on 8,596,681 outstanding shares 101,553
Portfolio Shares--Retail Class A
($.0001 par value--2 billion authorized) based
on 300,199 outstanding shares 3,487
Portfolio Shares--Retail Class B
($.0001 par value--2 billion authorized) based
on 73,646 outstanding shares 996
Accumulated net investment loss (4)
Accumulated net realized gain on investments 10,410
Net unrealized appreciation of investments 41,698
----------
TOTAL NET ASSETS--100.0% $ 158,140
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--INSTITUTIONAL CLASS $ 17.64
----------
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE--RETAIL CLASS A $ 17.55
MAXIMUM SALES CHARGE OF 4.50% (1) 0.83
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 18.38
----------
NET ASSET VALUE AND OFFERING PRICE PER
SHARE--RETAIL CLASS B (2) $ 17.15
----------
* Non-income producing security
(1) The offer price is calculated by dividing the net asset value by 1 minus the
maximum sales charge of 4.50%.
(2) Retail Class B has a contingent deferred sales charge. For a description of
possible redemption charge, see the notes to the financial statements.
(A) These money market funds are advised by U.S. Bank National Association who
also serve as Adviser for this Fund. See the Notes to the Financial Statements
for additional information.
(B) Other assets and liabilities representing greater than five percent of total
net assets include the following:
Cash collateral received for securities on loan $ 28,028
Payable upon return of securities on loan $(28,028)
ADR--American Depository Receipt
Cl--Class
MICRO CAP VALUE FUND
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS--94.7%
AIR TRANSPORTATION--0.2%
World Airways* 74,000 $ 592
----------
APPAREL/TEXTILES--1.3%
Hampshire Group Limited* 44,100 766
Quaker Fabric* 68,300 1,545
Tarrant Apparel Group* 61,200 910
----------
3,221
----------
BANKS--5.6%
Astoria Financial 10,000 503
Eagle Financial 35,800 1,432
First Republic Bank* 70,000 1,872
ONBANCorp 60,000 3,435
TR Financial 100,000 3,187
UST 35,400 903
Webster Financial 43,200 2,538
----------
13,870
----------
CHEMICALS--1.7%
Cambrex 38,600 1,800
Consep* 32,300 65
CPAC* 74,900 805
Excel Industries 75,900 1,513
----------
4,183
----------
COMMUNICATIONS EQUIPMENT--1.2%
California Micro Devices* 24,200 188
Comdial* 115,500 1,162
Nimbus CD International* 129,200 1,486
----------
2,836
----------
COMPUTERS & SERVICES--13.6%
Allstar Systems* 45,000 298
American Software, Cl A* 187,200 2,738
BancTec* 80,000 2,130
Bell & Howell* 64,000 2,076
Borland International* 185,000 1,873
Cimatron* 69,700 383
Concurrent Computer* 146,300 334
Consilium* 110,000 481
Dataflex* 155,900 507
Fourth Shift* 135,700 628
General Scanning* 65,000 2,263
Government Technology Services* 49,600 273
GSE Systems* 58,300 226
Kentek Information Systems 15,000 139
Kronos* 37,300 965
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
MICRO CAP VALUE FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Learmonth & Burchett Management
Systems, ADR* 88,400 $ 326
MacNeal-Schwendler* 101,900 1,261
May & Speh* 90,700 1,258
Mentor Graphics* 15,600 189
Micrografx* 100,000 625
National Computer Systems 60,000 2,122
Number Nine Visual Technology* 40,000 170
Olicom A/S* 133,900 3,883
Pioneer-Standard Electronics 95,400 1,640
Plaintree Systems* 27,000 105
Pomeroy Computer Resources* 90,000 3,848
Triple P N.V.* 213,500 454
TRO Learning* 80,700 888
TrueVision* 42,200 153
Wonderware* 50,000 919
Zycad* 318,350 358
----------
33,513
----------
CONTAINERS & PACKAGING--0.5%
BWay* 59,400 1,262
----------
ELECTRICAL SERVICES--4.6%
El Paso Electric* 126,800 761
TNP Enterprises 42,900 1,078
Trigen Energy 62,000 1,387
Tucson Electric Power* 450,000 8,016
----------
11,242
----------
ENVIRONMENTAL SERVICES--0.5%
Envirosource* 210,300 539
Heidemij N.V 77,200 820
----------
1,359
----------
FINANCIAL SERVICES--3.4%
Aames Financial 48,200 780
Medallion Financial 26,100 568
OMEGA Healthcare Investors 90,000 3,240
Pacific Crest Capital* 10,000 168
Point West Capital* 24,500 70
Rockford Industries* 106,700 1,120
WFS Financial* 116,100 2,525
----------
8,471
----------
GAS/NATURAL GAS--0.2%
Midcoast Energy Resources 19,100 393
----------
GLASS PRODUCTS--1.0%
Libbey 70,000 2,498
----------
MICRO CAP VALUE FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
HAZARDOUS WASTE MANAGEMENT--0.5%
Air & Water Technologies* 620,600 $ 1,280
----------
HOUSEHOLD FURNITURE & FIXTURES--0.6%
Stanley Furniture* 58,900 1,576
----------
HOUSEHOLD PRODUCTS--0.8%
Thomas Industries 69,800 2,094
----------
HOUSING CONSTRUCTION--1.1%
Continental Homes Holding 35,000 1,026
Morgan Products Limited* 113,700 760
Simpson Manufacturing* 20,000 838
----------
2,624
----------
INSURANCE--12.5%
ACMAT, Cl A* 52,700 1,014
Amvestors Financial 38,500 833
Chandler Insurance* 81,925 461
Delphi Financial Group, Cl A* 39,902 1,713
Enhance Financial Services Group 70,000 3,833
Farm Family Holdings* 29,400 944
Fremont General 135,322 6,462
John Alden Financial 80,700 2,502
LaSalle Re Holdings 45,300 1,591
Orion Capital 80,000 3,625
Penn Treaty American* 118,550 3,912
Philadelphia Consolidated Holding* 56,100 2,430
SCPIE Holdings 29,900 919
Symons International Group* 20,600 445
Westbridge Capital* 43,300 200
----------
30,884
----------
LEASING & RENTING--0.6%
Leasing Solutions* 24,500 464
Willis Lease Finance* 43,200 999
----------
1,463
----------
LUMBER & WOOD PRODUCTS--0.7%
Synthetic Industries* 61,700 1,789
----------
MACHINERY--10.9%
Bridgeport Machines* 111,500 1,185
Brown & Sharpe Manufacturing, Cl A* 126,800 1,799
Catalytica* 268,800 2,990
Central Sprinkler* 12,600 239
Dayton Superior* 75,500 1,435
Edelbrock* 55,700 1,058
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
MICRO CAP VALUE FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Foster (LB), Cl A* 165,000 $ 897
MagneTek* 184,762 4,134
Moog, Cl A* 190,000 7,576
Park-Ohio Industries* 84,535 1,289
Scotsman Industries 30,800 793
Unit Instruments* 112,620 1,366
Walbro 94,500 2,067
----------
26,828
----------
MARINE TRANSPORTATION--1.3%
Anangel American Shipholdings, ADR* 85,000 999
Nordic American Tanker Shipping* 112,900 2,117
----------
3,116
----------
MEDICAL PRODUCTS & SERVICES--2.4%
Cholestech* 141,500 1,521
Diagnostic Health Services* 121,400 1,836
PolyMedica* 79,000 1,067
Spacelabs Medical* 65,000 1,422
Unison HealthCare* 56,500 152
----------
5,998
----------
MISCELLANEOUS BUSINESS SERVICES--1.6%
Coinmach Laundry* 56,400 1,389
InteliData Technologies* 81,600 245
PMT Services* 94,100 1,459
Sapiens International* 100,000 925
----------
4,018
----------
MISCELLANEOUS CONSUMER SERVICES--0.4%
Regis 41,300 1,043
----------
MISCELLANEOUS MANUFACTURING--3.6%
AFC Cable Systems* 72,600 2,577
Centex Construction Products 23,900 708
FEI* 43,800 909
FiberMark* 42,150 877
Matthews International, Cl A 35,400 1,407
Superior TeleCom* 32,000 1,260
Tredegar Industries 15,000 1,054
----------
8,792
----------
MOTORCYCLES, BICYCLES & PARTS--0.7%
Cannondale* 32,000 720
Huffy 57,800 954
----------
1,674
----------
OFFICE FURNITURE & FIXTURES--0.5%
Shelby Williams Industries 62,800 1,244
----------
MICRO CAP VALUE FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
PETROLEUM & FUEL PRODUCTS--1.3%
Cairn Energy USA* 56,800 $ 788
Forest Oil* 77,620 1,417
Titan Exploration* 85,400 1,025
----------
3,230
----------
PETROLEUM REFINING--0.6%
Abacan Resource* 213,700 668
Hugoton Energy* 61,900 720
----------
1,388
----------
PRINTING & PUBLISHING--1.0%
Devon Group* 61,400 2,517
----------
PROFESSIONAL SERVICES--2.4%
Borg Warner Security* 210,000 4,095
Complete Management* 75,800 1,435
Guy F. Atkinson* 76,100 257
Total Containment* 60,455 151
----------
5,938
----------
REAL ESTATE--2.6%
Chelsea GCA Realty 27,100 1,131
Highwoods Properties 24,200 856
Lexington Corporate Properties 53,000 828
RFS Hotel Investors 33,200 647
Shurgard Storage Centers 65,100 1,904
Walden Residential Properties 34,000 859
Winston Hotels 12,900 173
----------
6,398
----------
RETAIL--5.3%
Acorn Products* 11,500 184
Apple South 114,950 2,213
Bacou USA* 43,000 753
Cross (A.T.), Cl A 54,800 531
Deckers Outdoor* 55,100 430
Drug Emporium* 331,600 1,451
Finish Line, Cl A* 24,100 456
Finlay Enterprises* 55,900 1,076
Friedman's, Cl A* 56,900 960
Genovese Drug Stores, Cl A 60,000 1,103
K-Swiss, Cl A 38,200 649
Marks Bros. Jewelers* 28,400 398
Moovies* 69,500 169
Piercing Pagoda* 39,100 1,241
Sound Advice* 87,300 196
Strouds* 66,900 205
Topps* 180,000 551
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
MICRO CAP VALUE FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Video Update, Cl A* 123,000 $ 454
West Coast Entertainment* 49,300 86
----------
13,106
----------
SEMI-CONDUCTORS/INSTRUMENTS--3.7%
Applied Magnetics* 210,000 6,615
Continental Circuits* 31,700 598
IEC Electronics* 13,300 261
Planar Systems* 91,100 1,031
Praegitzer Industries* 47,200 655
----------
9,160
----------
STEEL & STEEL WORKS--1.9%
Commercial Metals 31,300 1,000
Kentucky Electric Steel* 60,000 420
Northwest Pipe* 100,100 2,703
Republic Engineered Steels* 238,700 477
----------
4,600
----------
TELEPHONES & TELECOMMUNICATION--0.1%
Netrix* 74,300 139
----------
TESTING LABORATORIES--0.4%
Roberts Pharmaceutical* 99,700 1,084
----------
TRANSPORTATION--0.1%
B&H Ocean Carriers Limited* 41,600 161
----------
TRUCKING--2.3%
Budget Group, Cl A* 95,000 3,135
Suiza Foods* 36,800 1,895
Supreme Industries* 66,297 613
----------
5,643
----------
WHOLESALE--1.0%
Bonded Motors* 42,500 367
Performance Food Group* 50,700 1,293
Rykoff-Sexton 33,000 854
----------
2,514
----------
TOTAL COMMON STOCKS
(Cost $147,136) 233,741
----------
WARRANTS--0.3%
CHEMICALS--0.3%
Catalytica* 89,600 610
----------
TOTAL WARRANTS
(Cost $0) 610
----------
MICRO CAP VALUE FUND (CONTINUED)
DESCRIPTION PAR (000)/SHARES VALUE (000)
- --------------------------------------------------------------------------------
CONVERTIBLE BONDS--2.2%
Aames Financial, 53.5619 Shares
5.500%, 03/15/06 $ 200 $ 201
Air & Water Technology, 33.3300 Shares
8.000%, 05/15/15 589 468
Complete Management, 62.5000 Shares
8.000%, 12/15/03 300 358
Complete Management, 71.4286 Shares
8.000%, 08/15/03 590 794
Drug Emporium, 65.1466 Shares
7.750%, 10/01/14 921 822
Leasing Solutions, 28.6533 Shares
6.875%, 10/01/03 250 223
MacNeal-Schwendler, 66.0066 Shares
7.875%, 08/18/04 630 659
MagneTek, 62.5000 Shares
8.000%, 09/15/01 120 168
Maxxim Medical, 55.5555 Shares
6.750%, 03/01/03 155 223
Recognition Equipment, 35.2236 Shares
7.250%, 04/15/11 700 753
Titan, 285.7143 Shares
8.250%, 11/01/03 360 729
----------
TOTAL CONVERTIBLE BONDS
(Cost $4,181) 5,398
----------
RELATED PARTY MONEY MARKET FUND--3.1%
First American Prime
Obligations Fund (A) 7,762,633 7,763
----------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $7,763) 7,763
----------
TOTAL INVESTMENTS--100.3%
(Cost $159,080) 247,512
----------
OTHER ASSETS AND LIABILITIES, NET--(0.3%) (817)
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
MICRO CAP VALUE FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares--Institutional Class
($.0001 par value--2 billion authorized) based
on 22,511,045 outstanding shares $ 146,759
Portfolio Shares--Retail Class A
($.0001 par value--2 billion authorized) based
on 4,026 outstanding shares 41
Portfolio Shares--Retail Class B
($.0001 par value--2 billion authorized) based
on 4,550 outstanding shares 49
Accumulated net realized gain on investments 11,414
Net unrealized appreciation of investments 88,432
----------
TOTAL NET ASSETS--100.0% $ 246,695
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--INSTITUTIONAL CLASS $ 10.95
----------
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE--RETAIL CLASS A $ 10.96
MAXIMUM SALES CHARGE OF 4.50% (1) 0.52
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 11.48
----------
NET ASSET VALUE AND OFFERING PRICE PER SHARE--
RETAIL CLASS B (2) $ 10.95
----------
* Non-income producing security
(1) The offer price is calculated by dividing the net asset value by 1 minus the
maximum sales charge of 4.50%.
(2) Retail Class B has a contingent deferred sales charge. For a description of
possible redemption charge, see the notes to the financial statements.
(A) This money market fund is advised by U.S. Bank National Association who also
serves as Adviser for this Fund. See the Notes to the Financial Statements for
additional information.
ADR--American Depository Receipt
Cl--Class
INTERNATIONAL FUND
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
FOREIGN COMMON STOCKS--87.5%
BRAZIL--0.4%
Telebras ADR 6,300 $ 811
----------
CANADA--2.3%
Canadian Imperial Bank 25,300 729
Canadian National Railway 20,600 1,071
Northern Telecom 21,000 2,187
Royal Bank of Canada 24,100 1,184
----------
5,171
----------
DENMARK--0.2%
Novo Nordisk, Cl B 4,100 458
----------
FINLAND--0.9%
Nokia, ADR 5,800 544
Pohjola Vakuutusosakeyhtio BF 39,400 1,409
----------
1,953
----------
FRANCE--10.2%
Cap Gemini Sogeti 38,600 2,507
Elf Aquitaine 58,000 7,749
L'Oreal 6,160 2,468
Promodes 4,000 1,563
Rhone Poulenc, Cl A 62,000 2,468
Schneider 7,400 467
SGS Thomson Microelectronics* 19,400 1,829
Total Compaigne, Cl B 33,500 3,837
Valeo 6,400 421
----------
23,309
----------
GERMANY--9.8%
Adidas 34,800 4,530
Allianz 9,200 2,226
Bayer 13,300 529
Bayerisch Moteren Werke 900 765
Commerzbank 31,600 1,140
Daimler Benz 22,000 1,818
Deutsche Bank 48,600 3,412
Dresdner Bank 12,500 574
Mannesmann 5,800 2,758
Schering 18,500 1,941
SGL Carbon 3,700 540
Siemens 14,600 985
Volkswagen 1,500 1,041
----------
22,259
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
INTERNATIONAL FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
HONG KONG--2.9%
Cheung Kong Holdings 278,000 $ 3,126
HSBC Holdings 102,800 3,441
----------
6,567
----------
IRELAND--1.4%
Elan, ADR* 64,400 3,224
----------
ISRAEL--0.4%
ECI Telecommunications 26,900 871
----------
ITALY--2.8%
Credito Italiano 522,000 1,410
Parmalat Finanziaria 549,000 942
Pirelli 200,000 586
Telecom Italia 99,000 660
Telecom Italia Mobile 600,000 2,382
Telecom Italia Rinascente 116,000 451
----------
6,431
----------
JAPAN--16.2%
Advantest 12,800 1,263
Bridgestone 40,000 962
Canon 130,000 3,804
Fuji Photo Film 38,000 1,569
Fujitsu 179,000 2,241
Hirose Electric 7,000 516
Matsushita Communications 63,000 2,011
Murata Manufacturing 21,000 909
Nikon 130,000 2,048
Ricoh 62,000 930
Rohm Company 16,000 1,883
Sankyo 126,000 4,366
Sony 57,300 5,415
Takeda Chemical 151,000 4,531
TDK 13,000 1,164
Tokyo Electronics 52,000 3,177
----------
36,789
----------
MEXICO--1.6%
Grupo Elektra 80,000 1,293
Grupo Imsa 15,000 455
Grupo Posadas, Cl A* 825,000 597
Telefonos de Mexico, ADR 26,000 1,345
----------
3,690
----------
NETHERLANDS--13.3%
ABN-Amro Holding 63,200 1,281
Aegon 11,500 922
Ahold 19,900 538
INTERNATIONAL FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
AMEV 14,000 $ 585
ASM Lithography Holdings* 55,700 5,500
Baan, ADR* 65,000 4,615
Getronics 40,000 1,253
Ing Groep 105,000 4,825
Nutricia Vernide Bedrijven 19,000 571
Royal Dutch Petroleum 112,000 6,273
Unilever 9,100 1,944
VNU 41,800 971
Wolters Kluwer 7,500 1,012
----------
30,290
----------
SPAIN--0.8%
Banco Popular 8,000 515
Telefonica de Espana 43,600 1,371
----------
1,886
----------
SWEDEN--6.7%
Asea AB, Cl B 259,600 3,659
Atlas Copco, Cl B 57,100 1,941
Electrolux, Cl B 14,000 1,094
Ericsson Telephone, ADR 170,000 8,149
Securitas, Cl B 16,100 383
----------
15,226
----------
SWITZERLAND--7.8%
Adecco 7,750 3,120
CS Holdings, Registered* 21,500 2,908
Nestle, Registered 1,830 2,552
Novartis, Registered 3,000 4,604
Roche Holdings 320 2,841
Schweiz Ruckversicherung, Registered 1,200 1,801
----------
17,826
----------
UNITED KINGDOM--9.8%
Airtours 24,700 419
British Aerospace 20,400 547
British Petroleum 71,900 1,084
Enterprise Oil 129,000 1,408
Glaxo Wellcome 110,000 2,472
Imperial Chemical 126,000 2,042
Logica 54,000 769
Next 79,400 929
Reckit & Colman 198,200 3,039
SmithKline Beecham 650,000 6,300
Zeneca Group 102,200 3,329
----------
22,338
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
INTERNATIONAL FUND (CONTINUED)
DESCRIPTION SHARES/PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(Cost $161,429) $ 199,099
----------
FOREIGN PREFERRED STOCKS--7.1%
BRAZIL--0.6%
Electrobras, Cl B 2,359,000 1,311
----------
FINLAND--3.1%
Nokia, Cl A 75,000 7,052
----------
GERMANY--3.4%
SAP 29,200 7,828
----------
TOTAL FOREIGN PREFERRED STOCKS
(Cost $11,645) 16,191
----------
REPURCHASE AGREEMENT--7.0%
Merrill Lynch
6.0326%, dated 9/30/97, matures 10/01/97,
repurchase price $16,012,683 (collateralized
by various U.S. Treasury STRIPS: total market
value $16,330,503) $ 16,010 16,010
----------
TOTAL REPURCHASE AGREEMENT
(Cost $16,010) 16,010
----------
TOTAL INVESTMENTS--101.6%
(Cost $189,084) 231,300
----------
OTHER ASSETS AND LIABILITIES, NET--(1.6%) (3,695)
----------
NET ASSETS:
Portfolio shares--Institutional Class
($.0001 par value--2 billion authorized) based
on 16,436,608 outstanding shares 168,370
Portfolio shares--Retail Class A
($.0001 par value--2 billion authorized) based
on 607,164 outstanding shares 6,100
Portfolio shares--Retail Class B
($.0001 par value--2 billion authorized) based
on 168,706 outstanding shares 1,749
Undistributed net investment income 9,906
Accumulated net realized gain on investments
and foreign currency contracts 618
Net unrealized appreciation on investments 42,216
Net unrealized depreciation on forward foreign
currency contracts, foreign currency and translation
of other assets and liabilities in foreign currency (1,354)
----------
TOTAL NET ASSETS--100.0% $ 227,605
----------
INTERNATIONAL FUND (CONCLUDED)
DESCRIPTION VALUE
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--INSTITUTIONAL CLASS $ 13.23
----------
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE--RETAIL CLASS A $ 13.18
MAXIMUM SALES CHARGE OF 4.50% (1) 0.62
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 13.80
----------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--RETAIL CLASS B (2) $ 12.97
----------
* 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.
ADR--American Depository Receipt
Cl--Class
STRIPS--Separately Trading of Registered Interest and Principal of Securities
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
HEALTH SCIENCES FUND
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS--90.0%
CHEMICALS--3.3%
Cambrex 30,000 $ 1,399
----------
COMPUTERS & SERVICES--0.3%
HCIA* 10,000 135
----------
DRUGS--12.4%
Alliance Pharmaceutical* 32,000 382
Chirex* 22,700 579
Columbia Laboratories* 13,800 255
Galagen* 36,300 82
Guilford Pharmaceuticals* 11,000 324
R.P. Scherer* 21,500 1,332
Sepracor* 21,100 694
SmithKline Beecham, ADR 33,000 1,613
----------
5,261
----------
ELECTRICAL TECHNOLOGY--1.2%
Photoelectron* 65,000 504
----------
INSURANCE--4.0%
Pacificare Health Systems, Cl B* 10,200 695
United Healthcare 20,000 1,000
----------
1,695
----------
MEASURING DEVICES--2.0%
Cyberonics* 35,000 564
Somanetics* 80,000 290
----------
854
----------
MEDICAL PRODUCTS & SERVICES--53.8%
Algos Pharmaceuticals* 15,000 420
American Oncology Resources* 34,000 548
Apple Orthodontix, Cl A* 50,000 812
Applied Biometrics* 13,000 97
Arrow International 18,400 609
ATS Medical* 83,475 490
Biochem Pharmaceuticals* 60,000 1,890
Boston Biomedical* 55,000 399
Boston Scientific* 20,622 1,138
Cambridge Heart* 45,000 366
Cardima* 50,000 291
Closure Medical* 50,000 1,725
Columbia/HCA Healthcare 8,000 230
Conceptus* 75,000 530
Elan, ADR* 20,000 1,001
Genesis Health Ventures* 29,200 1,137
HBO & Company 7,966 301
Health Management Associates, Cl A* 32,000 1,012
HEALTH SCIENCES FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Heska* 46,000 $ 655
Idexx Laboratories* 50,200 841
Integrated Health Services 25,000 836
Medical Alliance* 24,000 96
Micro Therapeutics* 55,000 247
Neuromedical Systems* 25,950 133
Nitinol Medical Technologies* 50,000 712
Novoste* 10,000 166
Physiometrix* 50,000 131
Qiagen* 20,000 930
Quorum Health Group* 73,800 1,803
Sano* 26,500 633
Superior Consultants* 15,000 502
Vencor* 20,000 825
Ventana Medical Systems* 41,400 668
Vista Medical Technologies* 50,000 744
----------
22,918
----------
MISCELLANEOUS BUSINESS SERVICES--2.6%
Quadramed* 42,000 725
Quality Systems* 23,000 167
Transition Systems* 11,500 236
----------
1,128
----------
REAL ESTATE INVESTMENT TRUSTS--7.3%
Healthcare Realty Trust 37,300 1,061
National Health Investors 26,600 1,034
Nationwide Health Properties 41,400 996
----------
3,091
----------
SERVICES-PREPACKAGED SOFTWARE--2.4%
Imnet Systems* 38,200 1,027
----------
TESTING LABORATORIES--0.7%
Curative Technologies* 10,000 311
----------
TOTAL COMMON STOCKS
(Cost $29,279) 38,323
----------
RELATED PARTY MONEY MARKET FUNDS--6.4%
First American Government Obligation
Money Market (A) 1,331,203 1,331
First American Prime
Obligations Fund (A) 1,403,122 1,403
----------
TOTAL RELATED PARTY MONEY MARKET FUNDS
(Cost $2,734) 2,734
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
HEALTH SCIENCES FUND (CONCLUDED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT--3.6%
Merrill Lynch
5.627%, dated 09/30/97, matures 10/01/97,
repurchase price $1,532,239 (collateralized
by U.S. Treasury Note: total market
value $1,565,736) $ 1,532 $ 1,532
----------
TOTAL REPURCHASE AGREEMENT
(Cost $1,532) 1,532
----------
TOTAL INVESTMENTS--100.0%
(Cost $33,545) 42,589
----------
OTHER ASSETS AND LIABILITIES, NET--0.0% (B) 19
----------
NET ASSETS:
Portfolio Shares--Institutional Class
($.0001 par value--2 billion authorized) based
on 3,413,801 outstanding shares 27,758
Portfolio Shares--Retail Class A
($.0001 par value--2 billion authorized) based
on 70,458 outstanding shares 677
Portfolio Shares--Retail Class B
($.0001 par value--2 billion authorized) based
on 43,337 outstanding shares 418
Undistributed net investment income 1
Accumulated net realized gain on investments 4,710
Net unrealized appreciation of investments 9,044
----------
TOTAL NET ASSETS--100.0% $ 42,608
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--INSTITUTIONAL CLASS $ 12.08
----------
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE--RETAIL CLASS A $ 12.05
MAXIMUM SALES CHARGE OF 4.50% (1) 0.57
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 12.62
----------
NET ASSET VALUE AND OFFERING PRICE PER
SHARE--RETAIL CLASS B (2) $ 11.90
----------
* Non-income producing security
(1) The offer price is calculated by dividing the net asset value by 1 minus the
maximum sales charge of 4.50%.
(2) Retail Class B has a contingent deferred sales charge. For a description of
possible redemption charge, see the notes to the financial statements.
(A) These money market funds are advised by U.S. Bank National Association who
also serves as Adviser for this Fund. See the Notes to the Financial Statements
for additional information.
(B) Other assets and liabilities representing greater than five percent of total
net assets include the following:
Cash collateral received for securities on loan $ 12,262
Payable upon return of securities on loan $(12,262)
ADR--American Depository Receipt
Cl--Class
TECHNOLOGY FUND
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS--97.5%
ADVERTISING--1.2%
CKS Group* 51,000 $ 1,912
----------
AEROSPACE & DEFENSE--1.2%
Remec* 55,000 2,007
----------
COMMUNICATIONS EQUIPMENT--18.3%
ADC Telecommunications* 70,000 2,275
Ciena* 55,000 2,724
Harmonic Lite* 80,000 1,310
L.M. Ericsson Telephone, ADR 70,000 3,356
Larscom, Cl A* 100,000 1,012
MRV Communications* 50,000 1,825
Nokia, ADR 45,000 4,222
Novatel* 175,000 1,837
Orckit Communications* 100,000 1,812
Pairgain Technologies* 90,000 2,565
Tellabs* 55,000 2,832
Uniphase* 28,000 2,226
Viasat* 90,000 1,867
----------
29,863
----------
COMPUTERS & SERVICES--17.3%
3Com* 125,000 6,406
Apex PC Solutions* 70,000 2,651
Bay Networks* 75,000 2,897
BMC Software* 50,000 3,237
Ciprico* 100,000 1,512
Cisco Systems* 60,000 4,384
Imnet Systems* 38,600 1,037
Iomega* 70,000 1,829
Procom Technology* 80,000 1,260
Quantum* 75,000 2,873
----------
28,086
----------
MEASURING DEVICES--0.7%
Cerprobe* 45,000 1,131
----------
MISCELLANEOUS BUSINESS SERVICES--18.5%
America Online* 35,000 2,640
BA Merchant Services* 30,000 555
Bea Systems* 50,000 894
Cadence Design Systems* 30,000 1,605
Cats Software* 150,000 900
CCC Information Services Group* 70,000 1,488
Claremont Technology Group* 50,000 1,038
Computer Learning Centers* 35,000 1,365
Dynamic Healthcare Technologies* 142,000 772
Engineering Animation* 24,000 915
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
TECHNOLOGY FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Harbinger* 20,000 $ 728
Information Management Resources* 40,000 1,140
Intuit* 50,000 1,600
J.D. Edwards & Company* 10,400 348
Lernout & Hauspie Speech* 10,000 438
Network Solutions* 900 20
Newbridge Networks* 70,000 4,191
Ontrack Data International* 75,500 1,755
Premisys Communications* 75,000 1,908
Rogue Wave Software* 100,000 1,375
Seer Technologies* 200,000 1,350
VDI Media* 60,000 780
Viasoft* 48,000 2,376
----------
30,181
----------
SEMI-CONDUCTORS/INSTRUMENTS--7.4%
Adaptec* 30,000 1,403
Advanced Micro Devices* 40,000 1,303
Advanced Technology Materials* 40,000 1,470
ANADIGICS* 16,510 814
Hutchinson Technology* 40,000 1,343
Intel 40,000 3,693
PMC-Sierra* 60,000 1,530
Qlogic* 10,000 419
----------
11,975
----------
SERVICES-PREPACKAGED SOFTWARE--31.6%
Arbor Software* 35,000 1,621
Broadvision* 120,000 825
Cognos* 47,000 1,116
Crystal Systems Solutions* 65,000 1,739
Dr Solomon's Group Plc, ADR* 50,000 1,269
E*trade Group* 55,000 2,585
Edify* 75,000 1,078
Electronic Arts* 75,400 2,912
HNC Software* 60,000 2,385
I2 Technologies* 20,000 830
Industri-Matematik International* 100,000 2,450
Infinity Financial* 80,000 1,020
Intelligroup* 140,000 3,010
Interlinq Software* 50,000 200
JDA Software Group* 50,000 1,825
TECHNOLOGY FUND (CONTINUED)
DESCRIPTION SHARES/PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Legato Systems* 50,000 $ 1,775
Level 8 Systems* 80,000 1,840
Mechanical Dynamics* 159,500 1,246
Meta Group* 50,000 1,238
Microsoft* 23,000 3,043
National Instruments* 47,000 2,180
Oracle* 80,000 2,915
Parametric Technology* 35,000 1,544
Pegasystems* 55,000 1,671
Peoplesoft* 75,000 4,481
Sapient* 30,000 1,526
Spatial Technology* 44,300 105
Spectrum Holobyte* 100,000 619
Veritas Software* 52,500 2,307
----------
51,355
----------
TELEPHONES & TELECOMMUNICATION--1.3%
Lightbridge* 130,000 2,113
----------
TOTAL COMMON STOCKS
(Cost $115,544) 158,623
----------
CONVERTIBLE BOND--0.4%
Vantive
4.750%, 09/01/02 (B) $ 750 691
----------
TOTAL CONVERTIBLE BOND
(Cost $750) 691
----------
WARRANTS--0.1%
Optisystems Warrants* 100,000 131
----------
TOTAL WARRANTS
(Cost $71) 131
----------
RELATED PARTY MONEY MARKET FUND--2.7%
First American Prime
Obligations Fund (A) 4,326,056 4,326
----------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $4,326) 4,326
----------
TOTAL INVESTMENTS--100.7%
(Cost $120,691) 163,771
----------
OTHER ASSETS AND LIABILITIES, NET--(0.7%) (C) (1,085)
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
TECHNOLOGY FUND (CONCLUDED)
DESCRIPTION VALUE
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares--Institutional Class
($.0001 par value--2 billion authorized) based
on 7,327,467 outstanding shares $ 101,165
Portfolio Shares--Retail Class A
($.0001 par value--2 billion authorized) based
on 275,483 outstanding shares 3,769
Portfolio Shares--Retail Class B
($.0001 par value--2 billion authorized) based
on 432,292 outstanding shares 6,962
Accumulated net investment loss (4)
Accumulated net realized gain on investments 7,714
Net unrealized appreciation of investments 43,080
----------
TOTAL NET ASSETS--100.0% $ 162,686
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--INSTITUTIONAL CLASS $ 20.29
----------
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE--RETAIL CLASS A $ 20.20
MAXIMUM SALES CHARGE OF 4.50% (1) 0.95
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 21.15
----------
NET ASSET VALUE AND OFFERING PRICE PER
SHARE--RETAIL CLASS B (2) $ 19.58
----------
* Non-income producing security
(1) The offer price is calculated by dividing the net asset value by 1 minus the
maximum sales charge of 4.50%.
(2) Retail Class B has a contingent deferred sales charge. For a description of
possible redemption charge, see the notes to the financial statements.
(A) This money market fund is advised by U.S. Bank National Association who also
serves as Adviser for this Fund. See the Notes to the Financial Statements for
additional information.
(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 of other "accredited investors."
This security has been determined to be liquid under guidelines established by
the Board of Directors.
(C) Other assets and liabilities representing greater than five percent of total
net assets include the following:
Cash collateral received for securities on loan $ 57,617
Payable upon return of securities on loan $(57,617)
ADR--American Depository Receipt
Cl--Class
<PAGE>
STATEMENTS OF OPERATIONS (000)
For the period ended September 30, 1997
<TABLE>
<CAPTION>
PRIME GOVERNMENT TREASURY
OBLIGATIONS OBLIGATIONS OBLIGATIONS
FUND FUND FUND
----------- ----------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $210,069 $67,081+ $170,423
-------- -------- --------
EXPENSES:
Investment advisory fees 14,886 4,856 12,433
Waiver of investment advisory fees (2,485) (836) (2,528)
Distribution fees - Retail Class A 432 -- --
Distribution fees - Retail Class B 31 -- --
Distribution fees - Corporate Trust Class 223 485 3,609
Administrator fees 2,376 776 1,976
Custodian fees 1,119 359 932
Registration fees 281 99 666
Professional fees 200 71 161
Transfer agent fees 139 44 82
Printing 116 45 110
Directors' fees 81 26 68
Amortization of organizational costs -- -- 4
Other 48 25 85
-------- -------- --------
NET EXPENSES BEFORE EXPENSES PAID INDIRECTLY 17,447 5,950 17,598
Less: Expenses paid indirectly (11) (1) --
-------- -------- --------
TOTAL NET EXPENSES 17,436 5,949 17,598
======== ======== ========
Investment income - net 192,633 61,132 152,825
-------- -------- --------
NET REALIZED GAIN (LOSS) ON INVESTMENTS -- (6) 19
======== ======== ========
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $192,633 $ 61,126 $152,844
======== ======== ========
</TABLE>
+ Includes income from securities lending program. See the Notes to the
Financial Statements for additional information.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
STATEMENTS OF OPERATIONS (000)
For the period ended September 30, 1997
<TABLE>
<CAPTION>
LIMITED INTERMEDIATE INTERMEDIATE
TERM TERM GOVERNMENT FIXED
INCOME INCOME BOND INCOME
FUND FUND FUND FUND
------- -------- -------- --------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 7,322+ $ 9,738+ $ 11,333+ $ 38,108+
Dividends -- -- -- --
------- -------- -------- --------
TOTAL INVESTMENT INCOME 7,322 9,738 11,333 38,108
======= ======== ======== ========
EXPENSES:
Investment advisory fees 826 1,098 1,205 4,163
Waiver of investment advisory fees (348) (341) (296) (1,045)
LESS:
Administrator fees 134 178 196 677
Transfer agent fees 22 23 23 51
Amortization of organizational costs 4 3 -- --
Custodian fees 27 36 34 120
Directors' fees 3 3 4 13
Registration fees 34 79 19 103
Professional fees 7 9 15 49
Printing 1 6 6 22
Distribution fees - Retail Class A 18 6 9 20
Waiver of distribution fees - Retail Class A (18) (6) (9) --
Distribution fees - Retail Class B -- -- -- 156
Other 4 4 -- 11
------- -------- -------- --------
NET EXPENSES BEFORE EXPENSES PAID INDIRECTLY 714 1,098 1,206 4,340
Less: Expenses paid indirectly (5) -- (1) (1)
------- -------- -------- --------
TOTAL NET EXPENSES 709 1,098 1,205 4,339
======= ======== ======== ========
INVESTMENT INCOME - NET 6,613 8,640 10,128 33,769
======= ======== ======== ========
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS - NET:
Net realized gain (loss) on investments 29 263 (156) 58
Net change in unrealized appreciation (depreciation) of investments 508 2,441 1,507 12,465
------- -------- -------- --------
NET GAIN ON INVESTMENTS 537 2,704 1,351 12,523
======= ======== ======== ========
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 7,150 $ 11,344 $ 11,479 $ 46,292
======= ======== ======== ========
</TABLE>
+ Includes income from securities lending program. See the Notes to the
Financial Statements for additional information.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
(WIDE TABLE CONTINUED)
<TABLE>
<CAPTION>
MINNESOTA
CALIFORNIA COLORADO INSURED OREGON REAL
INTERMEDIATE INTERMEDIATE INTERMEDIATE INTERMEDIATE INTERMEDIATE ASSET ESTATE
TAX FREE TAX FREE TAX FREE TAX FREE TAX FREE ALLOCATION BALANCED SECURITIES
FUND FUND FUND FUND FUND FUND FUND FUND
---- ------ ------- ------ ------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C> <C>
$228 $2,859 $13,689 $1,379 $11,549 $ 3,885+ $12,120+ $ 99+
-- -- -- -- -- 780 3,958 1,565
---- ------ ------- ------ ------- ------- ------- ------
228 2,859 13,689 1,379 11,549 4,665 16,078 1,664
==== ====== ======= ====== ======= ======= ======= ======
32 381 1,853 181 1,593 759 2,969 217
(18) (116) (527) (100) (586) (138) (335) (75)
5 62 301 29 258 123 483 49
1 20 25 1 24 32 96 30
1 6 6 1 -- 3 4 8
1 16 79 7 68 51 87 9
-- 1 6 1 5 2 9 1
10 4 75 58 129 19 31 5
-- 3 19 1 16 9 24 2
-- 2 10 1 8 4 16 1
-- 10 16 -- 8 6 65 3
-- (10) (16) -- (8) -- -- --
-- -- -- -- -- 37 284 17
-- 2 6 -- 5 3 11 1
---- ------ ------- ------ ------- ------- ------- ------
32 381 1,853 180 1,520 910 3,744 268
-- -- -- -- -- -- (1) --
---- ------ ------- ------ ------- ------- ------- ------
32 381 1,853 180 1,520 910 3,743 268
==== ====== ======= ====== ======= ======= ======= ======
196 2,478 11,836 1,199 10,029 3,755 12,335 1,396
==== ====== ======= ====== ======= ======= ======= ======
10 90 956 183 2,619 19,842 41,325 822
103 1,193 1,670 678 1,523 (5,265) 44,532 7,510
---- ------ ------- ------ ------- ------- ------- ------
113 1,283 2,626 861 4,142 14,577 85,857 8,332
==== ====== ======= ====== ======= ======= ======= ======
$309 $3,761 $14,462 $2,060 $14,171 $18,332 $98,192 $9,728
==== ====== ======= ====== ======= ======= ======= ======
</TABLE>
<PAGE>
STATEMENTS OF OPERATIONS (000)
For the period ended September 30, 1997
<TABLE>
<CAPTION>
EQUITY EQUITY DIVERSIFIED SPECIAL
INCOME INDEX STOCK GROWTH EQUITY
FUND FUND FUND FUND FUND
-------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 2,479+ $ 718+ $ 4,743+ $ 1,417+ $ 1,613+
Dividends 5,661 8,491 14,088 6,885 5,784
Less: Foreign taxes withheld -- -- -- -- --
-------- --------- --------- --------- ---------
TOTAL INVESTMENT INCOME 8,140 9,209 18,831 8,302 7,397
======== ========= ========= ========= =========
EXPENSES:
Investment advisory fees 1,472 3,273 6,017 3,691 3,025
Waiver of investment advisory fees (366) (2,451) (758) (484) (22)
LESS:
Administrator fees 239 532 977 599 492
Transfer agent fees 35 56 151 47 116
Amortization of organizational costs 9 4 -- 9 --
Custodian fees 64 116 193 158 91
Directors' fees 4 10 19 11 9
Registration fees 94 39 173 115 89
Professional fees 15 28 70 40 35
Printing 8 17 14 20 16
Pricing fees -- -- -- -- --
Distribution fees - Retail Class A 10 25 83 21 60
Distribution fees - Retail Class B 51 139 368 75 228
Other 4 13 21 13 11
-------- --------- --------- --------- ---------
Net expenses before expenses paid indirectly 1,639 1,801 7,328 4,315 4,150
Less: Expenses paid indirectly (1) -- -- -- --
-------- --------- --------- --------- ---------
TOTAL NET EXPENSES 1,638 1,801 7,328 4,315 4,150
======== ========= ========= ========= =========
Investment income (loss) - net 6,502 7,408 11,503 3,987 3,247
-------- --------- --------- --------- ---------
REALIZED AND UNREALIZED GAINS (LOSSES)
ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS - NET:
Net realized gain on investments 21,119 16,563 166,898 56,183 85,750
Net realized gain on futures contracts -- 2,759 -- -- --
Net realized loss on closing and
expiration of options written -- -- -- -- (25,947)
Net realized gain on forward foreign currenc
contracts and foreign currency transactions -- -- -- -- --
Net change in unrealized appreciation of investments 27,751 129,164 104,252 83,459 83,135
Net change in unrealized depreciation of futures
contracts -- (48) -- -- --
Net change in unrealized depreciation of
purchased options contracts -- -- -- -- (375)
Net change in unrealized depreciation of forward
foreign currency contracts, foreign currency
and translation of other assets and liabilities
in foreign currency -- -- -- -- --
-------- --------- --------- --------- ---------
NET GAIN ON INVESTMENTS 48,870 148,438 271,150 139,642 142,563
======== ========= ========= ========= =========
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 55,372 $ 155,846 $ 282,653 $ 143,629 $ 145,810
======== ========= ========= ========= =========
</TABLE>
* Includes the following amounts due to Investments in Common Stocks of
Affiliates (000): $72 of dividend income, $2,181 of realized gains, and
$10,270 of change in unrealized appreciation of investments.
+ Includes income from securities lending program. See the Notes to the
Financial Statements for additional information.
++ On November 26, 1996 the fund had a redemption in kind with total proceeds
in the amount of $6,712,162. The net realized gains on the transaction of
$1,583,477 may not be realized for tax purposes.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
(WIDE TABLE CONTINUED)
<TABLE>
<CAPTION>
REGIONAL EMERGING MICRO CAP HEALTH
EQUITY GROWTH VALUE INTERNATIONAL SCIENCES TECHNOLOGY
FUND FUND FUND FUND FUND FUND
--------- -------- -------- -------- ------- --------
<S> <C> <C> <C> <C> <C>
$ 2,087+ $ 523+ $ 96 $ 699 $ 91+ $ 286+
2,198* 211 207 2,469 237 323
-- -- -- (210) -- --
--------- -------- -------- -------- ------- --------
4,285 734 303 2,958 328 609
========= ======== ======== ======== ======= ========
2,403 834 241 2,144 239 872
(18) (14) (59) -- (49) (29)
391 135 39 195 49 142
161 32 5 31 30 47
3 6 1 6 15 6
67 36 10 429 10 37
7 3 1 4 -- 3
19 18 65 17 9 26
20 10 2 10 2 10
16 9 4 6 1 4
-- -- -- 15 -- --
69 9 -- 9 2 13
313 9 -- 15 4 58
9 3 1 2 1 3
--------- -------- -------- -------- ------- --------
3,460 1,090 310 2,883 313 1,192
-- -- -- -- -- --
--------- -------- -------- -------- ------- --------
3,460 1,090 310 2,883 313 1,192
========= ======== ======== ======== ======= ========
825 (356) (7) 75 15 (583)
--------- -------- -------- -------- ------- --------
19,934*++ 11,274 11,421 5,280 4,727 9,979
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- 11,283 -- --
92,092* 22,599 10,789 33,294 4,407 15,172
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- (1,826) -- --
--------- -------- -------- -------- ------- --------
112,026 33,873 22,210 48,031 9,134 25,151
========= ======== ======== ======== ======= ========
$112,851 $33,517 $22,203 $48,106 $9,149 $24,568
========= ======== ======== ======== ======= ========
</TABLE>
<PAGE>
(THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY.)
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (000)
<TABLE>
<CAPTION>
PRIME GOVERNMENT
OBLIGATIONS FUND OBLIGATIONS FUND
----------------------------- ---------------------------
10/1/96 10/1/95 10/1/96 10/1/95
to to to to
9/30/97 9/30/96 9/30/97 9/30/96
------------ ------------ ----------- -----------
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income - net $ 192,633 $ 146,306 $ 61,132 $ 48,394
Net realized gain (loss) on investments -- 4 (6) 5
------------ ------------ ----------- -----------
Net increase in net assets resulting from operations 192,633 146,310 61,126 48,399
------------ ------------ ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Institutional class (176,476) (137,264) (45,205) (36,142)
Retail class A (8,570) (6,263) -- --
Retail class B (131) (30) -- --
Corporate Trust class (7,465) (2,749) (15,962) (12,252)
Net realized gain on investments
Institutional class -- -- -- --
Retail class A -- -- -- --
Retail class B -- -- -- --
Corporate Trust class -- -- -- --
------------ ------------ ----------- -----------
TOTAL DISTRIBUTIONS (192,642) (146,306) (61,167) (48,394)
============ ============ =========== ===========
CAPITAL SHARE TRANSACTIONS
AT NET ASSET VALUE OF $1.00 PER SHARE:
Institutional class:
Proceeds from sales 14,572,560 15,297,762 5,674,757 6,156,036
Share issued in connection
with acquisition of Common Trust Fund Assets 140,497 -- -- --
Reinvestment of distributions 60,409 44,907 24,252 20,243
Payments for redemptions (14,323,805) (15,087,516) (5,530,377) (5,949,974)
------------ ------------ ----------- -----------
Increase in net assets from Institutional Class transactions 449,661 255,153 168,632 226,305
------------ ------------ ----------- -----------
Retail class A:
Proceeds from sales 620,931 315,802 -- --
Reinvestment of distributions 8,075 6,093 -- --
Payments for redemptions (545,891) (282,831) -- --
------------ ------------ ----------- -----------
Increase in net assets from Retail Class A transactions 83,115 39,064 -- --
------------ ------------ ----------- -----------
Retail class B:
Proceeds from sales 7,242 2,605 -- --
Reinvestment of distributions 121 25 -- --
Payments for redemptions (7,107) (880) -- --
------------ ------------ ----------- -----------
Increase in net assets from Retail Class B transactions 256 1,750 -- --
------------ ------------ ----------- -----------
Corporate Trust Class:
Proceeds from sales 714,714 522,024 1,115,568 747,717
Payments for redemptions (710,856) (422,547) (1,047,740) (677,196)
------------ ------------ ----------- -----------
Increase in net assets from Corporate Trust Class transactions 3,858 99,477 67,828 70,521
------------ ------------ ----------- -----------
Increase in net assets from capital share transactions 536,890 395,444 236,460 296,826
------------ ------------ ----------- -----------
Total increase in net assets 536,881 395,448 236,419 296,831
NET ASSETS AT BEGINNING OF PERIOD 3,412,335 3,016,887 1,046,976 750,145
============ ============ =========== ===========
NET ASSETS AT END OF PERIOD (1) $ 3,949,216 $ 3,412,335 $ 1,283,395 $ 1,046,976
============ ============ =========== ===========
</TABLE>
(1) Includes undistributed net investment income (000) of $0 and $9 for Prime
Obligations Fund, $0 and $35 for Government Obligations Fund, and $0 and
$31 for Treasury Obligations Fund at September 30, 1997 and September 30,
1996, respectively.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
(WIDE TABLE CONTINUED)
<TABLE>
<CAPTION>
TREASURY
OBLIGATIONS FUND
---------------------------
10/1/96 10/1/95
to to
9/30/97 9/30/96
----------- -----------
<S> <C> <C>
OPERATIONS:
Investment income - net $ 152,825 $ 76,326
Net realized gain (loss) on investments 19 (6)
----------- -----------
Net increase in net assets resulting from operations 152,844 76,320
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Institutional class (35,311) (11,845)
Retail class A -- --
Retail class B -- --
Corporate Trust class (117,545) (64,450)
Net realized gain on investments
Institutional class -- (5)
Retail class A -- --
Retail class B -- --
Corporate Trust class -- (26)
----------- -----------
TOTAL DISTRIBUTIONS (152,856) (76,326)
=========== ===========
CAPITAL SHARE TRANSACTIONS
AT NET ASSET VALUE OF $1.00 PER SHARE:
Institutional class:
Proceeds from sales 5,288,369 2,598,130
Share issued in connection
with acquisition of Common Trust Fund Assets 6,884 --
Reinvestment of distributions 4,510 4,174
Payments for redemptions (4,719,356) (2,402,082)
----------- -----------
Increase in net assets from Institutional Class transactions 580,407 200,222
----------- -----------
Retail class A:
Proceeds from sales -- --
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 6,989,426 5,207,698
Payments for redemptions (5,758,331) (4,630,381)
----------- -----------
Increase in net assets from Corporate Trust Class transactions 1,231,095 577,317
----------- -----------
Increase in net assets from capital share transactions 1,811,502 777,539
----------- -----------
Total increase in net assets 1,811,490 777,533
NET ASSETS AT BEGINNING OF PERIOD 1,933,522 1,155,989
=========== ===========
NET ASSETS AT END OF PERIOD (1) $ 3,745,012 $ 1,933,522
=========== ===========
</TABLE>
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (000)
<TABLE>
<CAPTION>
LIMITED TERM INTERMEDIATE
INCOME FUND TERM INCOME FUND
----------------------- -----------------------
10/1/96 10/1/95 10/1/96 10/1/95
to to to to
9/30/97 9/30/96 9/30/97 9/30/96
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income - net $ 6,613 $ 6,610 $ 8,640 $ 5,384
Net realized gain (loss) on investments 29 (180) 263 1,117
Net change in unrealized appreciation
(depreciation) of investments 508 40 2,441 (1,247)
--------- --------- --------- ---------
Net increase in net assets resulting from operations 7,150 6,470 11,344 5,254
--------- --------- --------- ---------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Institutional class (6,216) (6,192) (8,507) (5,260)
Retail class A (407) (461) (133) (126)
Retail class B -- -- -- --
Net realized gain on investments:
Institutional class -- -- (620) (107)
Retail class A -- -- (15) (3)
Retail class B -- -- -- --
Tax return of capital
Institutional class -- -- -- --
Retail class A -- -- -- --
Retail class B -- -- -- --
--------- --------- --------- ---------
TOTAL DISTRIBUTIONS (6,623) (6,653) (9,275) (5,496)
========= ========= ========= =========
CAPITAL SHARE TRANSACTIONS (1):
Institutional class:
Proceeds from sales 54,226 33,034 33,377 41,060
Shares issued in connection with acquisition of
Common Trust Fund Assets 71,476 -- 241,021 --
Reinvestment of distributions 4,328 5,073 3,577 3,790
Payments for redemptions (39,753) (55,781) (54,475) (34,282)
--------- --------- --------- ---------
Increase (decrease) in net assets from
Institutional class transactions 90,277 (17,674) 223,500 10,568
--------- --------- --------- ---------
Retail class A:
Proceeds from sales 1,851 5,050 1,309 441
Reinvestment of distributions 391 445 111 108
Payments for redemptions (2,741) (7,839) (1,170) (772)
--------- --------- --------- ---------
Increase (decrease) in net assets from
Retail class A transactions (499) (2,344) 250 (223)
--------- --------- --------- ---------
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 89,778 (20,018) 223,750 10,345
--------- --------- --------- ---------
Total increase (decrease) in net assets 90,305 (20,201) 225,819 10,103
NET ASSETS AT BEGINNING OF PERIOD 101,215 121,416 100,915 90,812
========= ========= ========= =========
NET ASSETS AT END OF PERIOD (2) $ 191,520 $ 101,215 $ 326,734 $ 100,915
========= ========= ========= =========
(1)CAPITAL SHARE TRANSACTIONS:
Institutional class:
Shares issued 5,467 3,323 3,356 4,116
Shares issued in connection with acquisition of
Common Trust Fund Assets 7,212 -- 24,298 --
Shares issued in lieu of cash distributions 437 512 360 380
Shares redeemed (4,008) (5,619) (5,483) (3,441)
--------- --------- --------- ---------
TOTAL INSTITUTIONAL CLASS TRANSACTIONS 9,108 (1,784) 22,531 1,055
========= ========= ========= =========
Retail class A:
Shares issued 186 508 132 44
Shares issued in lieu of cash distributions 40 45 11 11
Shares redeemed (276) (788) (118) (77)
--------- --------- --------- ---------
TOTAL RETAIL CLASS A TRANSACTIONS (50) (235) 25 (22)
========= ========= ========= =========
Retail class B:
Shares issued -- -- -- --
Shares issued in lieu of cash distributions -- -- -- --
Shares redeemed -- -- -- --
--------- --------- --------- ---------
TOTAL RETAIL CLASS B TRANSACTIONS -- -- -- --
========= ========= ========= =========
NET INCREASE (DECREASE) FROM SHARE TRANSACTIONS 9,058 (2,019) 22,556 1,033
========= ========= ========= =========
</TABLE>
<PAGE>
(WIDE TABLE CONTINUED)
<TABLE>
<CAPTION>
CALIFORNIA
INTERMEDIATE
INTERMEDIATE GOVERNMENT TAX FREE
BOND FUND FIXED INCOME FUND FUND
----------------------- ----------------------- --------
10/1/96 10/1/95 10/1/96 10/1/95 8/8/97
to to to to to
9/30/97 9/30/96 9/30/97 9/30/96 9/30/97(3)
--------- --------- --------- --------- --------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Investment income - net $ 10,128 $ 7,198 $ 33,769 $ 21,569 $ 196
Net realized gain (loss) on investments (156) 87 58 3,464 10
Net change in unrealized appreciation
(depreciation) of investments 1,507 (1,542) 12,465 (8,403) 103
--------- --------- --------- --------- --------
Net increase in net assets resulting from operations 11,479 5,743 46,292 16,630 309
--------- --------- --------- --------- --------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Institutional class (9,922) (7,021) (32,617) (20,552) (196)
Retail class A (209) (187) (435) (457) --
Retail class B -- -- (736) (663) --
Net realized gain on investments:
Institutional class -- -- (2,700) (2,859) (5)
Retail class A -- -- (56) (75) --
Retail class B -- -- (108) (104) --
Tax return of capital
Institutional class -- -- -- -- --
Retail class A -- -- -- -- --
Retail class B -- -- -- -- --
--------- --------- --------- --------- --------
TOTAL DISTRIBUTIONS (10,131) (7,208) (36,652) (24,710) (201)
========= ========= ========= ========= ========
CAPITAL SHARE TRANSACTIONS (1):
Institutional class:
Proceeds from sales 45,057 58,921 210,796 172,829 1,910
Shares issued in connection with acquisition of
Common Trust Fund Assets 31,833 -- 217,322 -- 32,213
Reinvestment of distributions 888 778 13,547 10,932 5
Payments for redemptions (37,431) (18,212) (136,383) (74,839) (949)
--------- --------- --------- --------- --------
Increase (decrease) in net assets from
Institutional class transactions 40,347 41,487 305,282 108,922 33,179
--------- --------- --------- --------- --------
Retail class A:
Proceeds from sales 1,571 1,463 4,803 3,048 1
Reinvestment of distributions 138 126 363 394 --
Payments for redemptions (1,539) (1,089) (5,105) (2,792) --
--------- --------- --------- --------- --------
Increase (decrease) in net assets from
Retail class A transactions 170 500 61 650 1
--------- --------- --------- --------- --------
Retail class B:
Proceeds from sales -- -- 2,475 12,078 --
Reinvestment of distributions -- -- 723 676 --
Payments for redemptions -- -- (4,309) (3,560) --
--------- --------- --------- --------- --------
Increase (decrease) in net assets from
Retail class B transactions -- -- (1,111) 9,194 --
--------- --------- --------- --------- --------
Increase (decrease) in net assets from
capital share transactions 40,517 41,987 304,232 118,766 33,180
--------- --------- --------- --------- --------
Total increase (decrease) in net assets 41,865 40,522 313,872 110,686 33,288
NET ASSETS AT BEGINNING OF PERIOD 143,550 103,028 415,635 304,949 0
========= ========= ========= ========= ========
NET ASSETS AT END OF PERIOD (2) $ 185,415 $ 143,550 $ 729,507 $ 415,635 $ 33,288
========= ========= ========= ========= ========
(1)CAPITAL SHARE TRANSACTIONS:
Institutional class:
Shares issued 4,888 6,376 19,428 15,824 191
Shares issued in connection with acquisition of
Common Trust Fund Assets 3,423 -- 19,965 -- 3,221
Shares issued in lieu of cash distributions 96 84 1,251 1,005 1
Shares redeemed (4,054) (1,972) (12,610) (6,879) (95)
--------- --------- --------- --------- --------
TOTAL INSTITUTIONAL CLASS TRANSACTIONS 4,353 4,488 28,034 9,950 3,318
========= ========= ========= ========= ========
Retail class A:
Shares issued 170 157 443 278 --
Shares issued in lieu of cash distributions 15 14 33 36 --
Shares redeemed (166) (117) (472) (255) --
--------- --------- --------- --------- --------
TOTAL RETAIL CLASS A TRANSACTIONS 19 54 4 59 --
========= ========= ========= ========= ========
Retail class B:
Shares issued -- -- 229 1,103 --
Shares issued in lieu of cash distributions -- -- 67 62 --
Shares redeemed -- -- (400) (329) --
--------- --------- --------- --------- --------
TOTAL RETAIL CLASS B TRANSACTIONS -- -- (104) 836 --
========= ========= ========= ========= ========
NET INCREASE (DECREASE) FROM SHARE TRANSACTIONS 4,372 4,542 27,934 10,845 3,318
========= ========= ========= ========= ========
</TABLE>
(2) Includes undistributed (distributions in excess of) net investment income
(000) of $0 and $(1) for Limited Term Income Fund, $(1) and $(1) for
Intermediate Term Income Fund, $0 and $0 for Intermediate Government Bond
Fund, $12 and $31 for Fixed Income Fund, $0 for California Intermediate Tax
Free Fund, $0 and $4 for Colorado Intermediate Tax Free Income Fund, $0 and
$4 for Minnesota Insured Intermediate Tax Free Fund, $0 for Oregon
Intermediate Tax Free Fund, $11 and $17 for Intermediate Tax Free Income
Fund, $92 and $113 for Asset Allocation Fund, $296 and $366 for Balanced
Fund, and $0 and $(13) for Real Estate Securities Fund, at September 30,
1997 and September 30, 1996, respectively.
(3) The California Intermediate Tax Free Fund and Oregon Intermediate Tax Free
Fund commenced operations on August 8, 1997.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
(WIDE TABLE CONTINUED)
<TABLE>
<CAPTION>
COLORADO MINNESOTA INSURED OREGON
INTERMEDIATE INTERMEDIATE INTERMEDIATE INTERMEDIATE
TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND
- --------------------- ---------------------- ------------- ----------------------
10/1/96 10/1/95 10/1/96 10/1/95 8/8/97 10/1/96 10/1/95
to to to to to to to
9/30/97 9/30/96 9/30/97 9/30/96 9/30/97(3) 9/30/97 9/30/96
- -------- -------- --------- -------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
$ 2,478 $ 2,428 $ 11,836 $ 3,636 $ 1,199 $ 10,029 $ 2,564
90 290 956 324 183 2,619 352
1,193 (508) 1,670 (278) 678 1,523 (449)
- -------- -------- --------- -------- --------- --------- --------
3,761 2,210 14,462 3,682 2,060 14,171 2,467
- -------- -------- --------- -------- --------- --------- --------
(2,308) (2,305) (11,553) (3,496) (1,199) (9,897) (2,480)
(174) (121) (287) (145) -- (138) (68)
-- -- -- -- -- -- --
(256) (236) (310) (195) -- (412) (326)
(20) (11) (14) (7) -- (17) (9)
-- -- -- -- -- -- --
-- -- -- -- -- -- --
-- -- -- -- -- -- --
-- -- -- -- -- -- --
- -------- -------- --------- -------- --------- --------- --------
(2,758) (2,673) (12,164) (3,843) (1,199) (10,464) (2,883)
======== ======== ========= ======== ========= ========= ========
11,557 7,303 41,072 50,720 2,652 35,896 30,145
-- -- 201,901 -- 180,293 369,839 --
6 6 241 110 87 607 208
(7,051) (8,015) (41,655) (18,988) (1,824) (45,984) (8,984)
- -------- -------- --------- -------- --------- --------- --------
4,512 (706) 201,559 31,842 181,208 360,358 21,369
- -------- -------- --------- -------- --------- --------- --------
3,124 1,163 4,643 2,183 -- 2,642 2,209
116 79 104 90 -- 78 59
(1,978) (545) (1,339) (556) -- (1,549) (617)
- -------- -------- --------- -------- --------- --------- --------
1,262 697 3,408 1,717 -- 1,171 1,651
- -------- -------- --------- -------- --------- --------- --------
-- -- -- -- -- -- --
-- -- -- -- -- -- --
-- -- -- -- -- -- --
- -------- -------- --------- -------- --------- --------- --------
-- -- -- -- -- -- --
- -------- -------- --------- -------- --------- --------- --------
5,774 (9) 204,967 33,559 181,208 361,529 23,020
- -------- -------- --------- -------- --------- --------- --------
6,777 (472) 207,265 33,398 182,069 365,236 22,604
51,788 52,260 97,310 63,912 -- 69,612 47,008
======== ======== ========= ======== ========= ========= ========
$ 58,565 $ 51,788 $ 304,575 $ 97,310 $ 182,069 $ 434,848 $ 69,612
======== ======== ========= ======== ========= ========= ========
1,102 696 3,981 5,106 264 3,359 2,816
-- -- 20,251 -- 18,029 34,393 --
-- 1 24 11 9 56 20
(673) (764) (4,155) (1,909) (182) (4,259) (841)
- -------- -------- --------- -------- --------- --------- --------
429 (67) 20,101 3,208 18,120 33,549 1,995
======== ======== ========= ======== ========= ========= ========
298 111 467 218 -- 247 206
11 8 10 9 -- 7 6
(189) (52) (133) (56) -- (145) (58)
- -------- -------- --------- -------- --------- --------- --------
120 67 344 171 -- 109 154
======== ======== ========= ======== ========= ========= ========
-- -- -- -- -- -- --
-- -- -- -- -- -- --
-- -- -- -- -- -- --
- -------- -------- --------- -------- --------- --------- --------
-- -- -- -- -- -- --
======== ======== ========= ======== ========= ========= ========
549 -- 20,445 3,379 18,120 33,658 2,149
======== ======== ========= ======== ========= ========= ========
</TABLE>
<PAGE>
(WIDE TABLE CONTINUED)
<TABLE>
<CAPTION>
ASSET REAL ESTATE
ALLOCATION FUND BALANCED FUND SECURITIES FUND
---------------------- ----------------------- ---------------------
10/1/96 10/1/95 10/1/96 10/1/95 10/1/96 10/1/95
to to to to to to
9/30/97 9/30/96 9/30/97 9/30/96 9/30/97 9/30/96
--------- -------- --------- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
$ 3,755 $ 1,607 $ 12,335 $ 9,018 $ 1,396 $ 600
19,842 4,611 41,325 13,465 822 62
(5,265) (125) 44,532 18,484 7,510 1,531
--------- -------- --------- --------- -------- --------
18,332 6,093 98,192 40,967 9,728 2,193
--------- -------- --------- --------- -------- --------
(3,609) (1,528) (11,095) (8,265) (1,132) (608)
(71) (40) (721) (520) (46) (8)
(96) (33) (589) (386) (52) (8)
(4,651) (1,575) (14,766) (6,878) (433) --
(175) (41) (962) (433) (21) --
(213) (28) (854) (321) (32) --
-- -- -- -- (9) (203)
-- -- -- -- -- (2)
-- -- -- -- (1) (3)
--------- -------- --------- --------- -------- --------
(8,815) (3,245) (28,987) (16,803) (1,726) (832)
========= ======== ========= ========= ======== ========
8,528 15,736 94,094 147,476 18,012 11,294
66,843 -- -- -- --
6,427 3,076 25,618 15,199 79 --
(36,848) (9,929) (94,297) (43,865) (2,773) (478)
--------- -------- --------- --------- -------- --------
44,950 8,883 25,415 118,810 15,318 10,816
--------- -------- --------- --------- -------- --------
672 802 10,369 5,472 1,850 308
243 79 1,632 1,023 51 5
(523) (106) (4,969) (2,371) (306) (105)
--------- -------- --------- --------- -------- --------
392 775 7,032 4,124 1,595 208
--------- -------- --------- --------- -------- --------
2,443 1,805 24,636 12,197 2,731 287
301 60 1,396 337 76 11
(377) (223) (2,836) (930) (182) (57)
--------- -------- --------- --------- -------- --------
2,367 1,642 23,196 11,604 2,625 241
--------- -------- --------- --------- -------- --------
47,709 11,300 55,643 134,538 19,538 11,265
--------- -------- --------- --------- -------- --------
57,226 14,148 124,848 158,702 27,540 12,626
58,922 44,774 369,255 210,553 18,384 5,758
========= ======== ========= ========= ======== ========
$ 116,148 $ 58,922 $ 494,103 $ 369,255 $ 45,924 $ 18,384
========= ======== ========= ========= ======== ========
694 1,320 6,716 11,725 1,356 1,041
5,655 -- -- -- -- --
535 260 1,874 1,231 6 --
(2,996) (828) (6,796) (3,504) (213) (44)
--------- -------- --------- --------- -------- --------
3,888 752 1,794 9,452 1,149 997
========= ======== ========= ========= ======== ========
55 66 729 437 140 29
20 7 119 83 4 --
(43) (9) (344) (190) (23) (9)
--------- -------- --------- --------- -------- --------
32 64 504 330 121 20
========= ======== ========= ========= ======== ========
199 152 1,759 975 208 27
25 5 102 27 6 1
(30) (19) (202) (74) (14) (5)
--------- -------- --------- --------- -------- --------
194 138 1,659 928 200 23
========= ======== ========= ========= ======== ========
4,114 954 3,957 10,710 1,470 1,040
========= ======== ========= ========= ======== ========
</TABLE>
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (000)
<TABLE>
<CAPTION>
EQUITY EQUITY
INCOME FUND INDEX FUND
---------------------- -----------------------
10/1/96 10/1/95 10/1/96 10/1/95
to to to to
9/30/97 9/30/96 9/30/97 9/30/96
--------- -------- --------- ---------
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income (loss) - net $ 6,502 $ 2,206 $ 7,408 $ 6,156
Net realized gain on investments 21,119 1,913 16,563 6,653
Net realized gain on futures contracts -- -- 2,759 2,952
Net realized loss on closing and expiration of options written -- -- -- --
Net realized gain on forward foreign currency contracts
and foreign currency transactions -- -- -- --
Net change in unrealized appreciation (depreciation) of investments 27,751 5,650 129,164 35,438
Net change in unrealized depreciation of futures contracts -- -- (48) --
Net change in unrealized depreciation of purchased options contracts -- -- -- --
Net change in unrealized appreciation (depreciation) on forward foreign
currency contracts, foreign currency and translation of other
assets and liabilities in foreign currency -- -- -- --
--------- -------- --------- ---------
Net increase in net assets resulting from operations 55,372 9,769 155,846 51,199
--------- -------- --------- ---------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Institutional class (6,071) (2,083) (7,188) (5,941)
Retail class A (120) (75) (138) (79)
Retail class B (111) (61) (92) (51)
Net realized gain on investments:
Institutional class (1,790) (50) (9,833) (3,073)
Retail class A (68) (2) (187) (35)
Retail class B (106) (2) (245) (31)
--------- -------- --------- ---------
TOTAL DISTRIBUTIONS (8,266) (2,273) (17,683) (9,210)
========= ======== ========= =========
CAPITAL SHARE TRANSACTIONS (1):
Institutional class
Proceeds from sales 25,317 17,718 134,912 145,084
Shares issued in connection with the acquisition
of Common Trust Fund Assets 265,585 -- -- --
Shares issued in connection with the acquisition
of Limited Volatility Stock Fund -- -- -- --
Reinvestment of distributions 358 196 15,628 8,158
Payments for redemptions (30,860) (12,403) (72,939) (64,387)
--------- -------- --------- ---------
Increase in net assets from Institutional class transactions 260,400 5,511 77,601 88,855
--------- -------- --------- ---------
Retail class A:
Proceeds from sales 7,046 1,475 10,915 4,351
Reinvestment of distributions 154 71 299 107
Payments for redemptions (3,548) (1,222) (4,435) (990)
--------- -------- --------- ---------
Increase (decrease) in net assets from Retail class A transactions 3,652 324 6,779 3,468
--------- -------- --------- ---------
Retail class B:
Proceeds from sales 2,145 2,585 12,706 6,999
Reinvestment of distributions 206 59 333 80
Payments for redemptions (636) (388) (1,626) (648)
--------- -------- --------- ---------
Increase in net assets from Retail class B transactions 1,715 2,256 11,413 6,431
--------- -------- --------- ---------
Increase in net assets from capital share transactions 265,767 8,091 95,793 98,754
--------- -------- --------- ---------
Total increase in net assets 312,873 15,587 233,956 140,743
NET ASSETS AT BEGINNING OF PERIOD 70,941 55,354 363,012 222,269
========= ======== ========= =========
NET ASSETS AT END OF PERIOD (2) $ 383,814 $ 70,941 $ 596,968 $ 363,012
========= ======== ========= =========
(1)CAPITAL SHARE TRANSACTIONS:
Shares issued 1,790 1,473 7,433 10,067
Shares issued in connection with the acquisition
of Common Trust Fund Assets 18,802 -- -- --
Shares issued in connection with the acquisition
of Limited Volatility Stock Fund -- -- -- --
Shares issued in lieu of cash distributions 25 17 917 572
Shares redeemed (2,157) (1,024) (4,009) (4,525)
--------- -------- --------- ---------
TOTAL INSTITUTIONAL CLASS TRANSACTIONS 18,460 466 4,341 6,114
========= ======== ========= =========
Retail class A:
Shares issued 497 121 607 302
Shares issued in lieu of cash distributions 11 6 18 8
Shares redeemed (248) (101) (257) (68)
--------- -------- --------- ---------
TOTAL RETAIL CLASS A TRANSACTIONS 260 26 368 242
========= ======== ========= =========
Retail class B:
Shares issued 155 216 687 485
Shares issued in lieu of cash distributions 15 5 20 6
Shares redeemed (45) (32) (93) (46)
--------- -------- --------- ---------
TOTAL RETAIL CLASS B TRANSACTIONS 125 189 614 445
========= ======== ========= =========
NET INCREASE IN CAPITAL SHARES 18,845 681 5,323 6,801
========= ======== ========= =========
</TABLE>
(2) Includes undistributed (distribution in excess of) net investment
income (000) of $311 and $103 for Equity Income Fund, $185 and $195 for
Equity Index Fund, $245 and $1,113 for Stock Fund, $109 and $187 for
Diversified Growth Fund, $150 and $148 for Special Equity Fund, $0 and
$1,177 for Regional Equity Fund, accumulated net investment loss $(4)
and $(3) for Emerging Growth Fund, $0 for MicroCap Value Fund, $9,906
and $716 for International Fund, $1 and $20 for Health Sciences Fund,
and accumulated net investment (loss) of $0 and $(3) for Technology
Fund at September 30, 1997 and September 30, 1996, respectively.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
(WIDE TABLE CONTINUED)
<TABLE>
<CAPTION>
DIVERSIFIED
STOCK FUND GROWTH FUND
----------------------- ----------------------
10/1/96 10/1/95 10/1/96 10/1/95
to to to to
9/30/97 9/30/96 9/30/97 9/30/96
---------- -------- -------- --------
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income (loss) - net $ 11,503 $ 7,891 $ 3,987 $ 2,593
Net realized gain on investments 166,898 32,493 56,183 3,561
Net realized gain on futures contracts -- -- -- --
Net realized loss on closing and expiration of options written -- -- -- --
Net realized gain on forward foreign currency contracts
and foreign currency transactions -- -- -- --
Net change in unrealized appreciation (depreciation) of investments 104,252 52,330 83,459 24,066
Net change in unrealized depreciation of futures contracts -- -- -- --
Net change in unrealized depreciation of purchased options contracts -- -- -- --
Net change in unrealized appreciation (depreciation) on forward foreign
currency contracts, foreign currency and translation of other
assets and liabilities in foreign currency -- -- -- --
---------- -------- -------- --------
Net increase in net assets resulting from operations 282,653 92,714 143,629 30,220
---------- -------- -------- --------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Institutional class (11,699) (6,914) (4,005) (2,494)
Retail class A (419) (337) (57) (49)
Retail class B (253) (342) (12) (21)
Net realized gain on investments:
Institutional class (36,144) (17,819) (4,541) --
Retail class A (1,898) (868) (113) --
Retail class B (2,030) (881) (123) --
---------- -------- -------- --------
TOTAL DISTRIBUTIONS (52,443) (27,161) (8,851) (2,564)
========== ======== ======== ========
CAPITAL SHARE TRANSACTIONS (1):
Institutional class
Proceeds from sales 369,573 138,818 54,925 101,788
Shares issued in connection with the acquisition
of Common Trust Fund Assets 177,039 -- 360,927 --
Shares issued in connection with the acquisition
of Limited Volatility Stock Fund -- 17,977 -- --
Reinvestment of distributions 30,785 16,568 2,499 832
Payments for redemptions (165,426) (75,002) (93,542) (36,094)
---------- -------- -------- --------
Increase in net assets from Institutional class transactions 411,971 98,361 324,809 66,526
---------- -------- -------- --------
Retail class A:
Proceeds from sales 35,133 9,261 17,452 4,071
Reinvestment of distributions 2,180 1,036 139 43
Payments for redemptions (18,329) (3,205) (13,295) (2,088)
---------- -------- -------- --------
Increase (decrease) in net assets from Retail class A transactions 18,984 7,092 4,296 2,026
---------- -------- -------- --------
Retail class B:
Proceeds from sales 22,592 14,464 2,391 4,817
Reinvestment of distributions 2,232 626 130 21
Payments for redemptions (4,414) (1,295) (742) (436)
---------- -------- -------- --------
Increase in net assets from Retail class B transactions 20,410 13,795 1,779 4,402
---------- -------- -------- --------
Increase in net assets from capital share transactions 451,365 119,248 330,884 72,954
---------- -------- -------- --------
Total increase in net assets 681,575 184,801 465,662 100,610
NET ASSETS AT BEGINNING OF PERIOD 517,487 332,686 236,993 136,383
========== ======== ======== ========
NET ASSETS AT END OF PERIOD (2) $1,199,062 $517,487 $702,655 $236,993
========== ======== ======== ========
(1)CAPITAL SHARE TRANSACTIONS:
Shares issued 15,111 6,743 3,578 8,009
Shares issued in connection with the acquisition
of Common Trust Fund Assets 7,432 -- 24,454 --
Shares issued in connection with the acquisition
of Limited Volatility Stock Fund -- 917 -- --
Shares issued in lieu of cash distributions 1,318 842 172 65
Shares redeemed (6,620) (3,626) (6,125) (2,817)
---------- -------- -------- --------
TOTAL INSTITUTIONAL CLASS TRANSACTIONS 17,241 4,876 22,079 5,257
========== ======== ======== ========
Retail class A:
Shares issued 1,344 450 1,125 320
Shares issued in lieu of cash distributions 94 53 10 3
Shares redeemed (702) (154) (843) (164)
---------- -------- -------- --------
TOTAL RETAIL CLASS A TRANSACTIONS 736 349 292 159
========== ======== ======== ========
Retail class B:
Shares issued 916 705 157 388
Shares issued in lieu of cash distributions 97 32 9 1
Shares redeemed (178) (63) (49) (34)
---------- -------- -------- --------
TOTAL RETAIL CLASS B TRANSACTIONS 835 674 117 355
========== ======== ======== ========
NET INCREASE IN CAPITAL SHARES 18,812 5,899 22,488 5,771
========== ======== ======== ========
</TABLE>
<PAGE>
(WIDE TABLE CONTINUED)
<TABLE>
<CAPTION>
SPECIAL REGIONAL EMERGING
EQUITY FUND EQUITY FUND GROWTH FUND
- ----------------------- ----------------------- ----------------------
10/1/96 10/1/95 10/1/96 10/1/95 10/1/96 10/1/95
to to to to to to
9/30/97 9/30/96 9/30/97 9/30/96 9/30/97 9/30/96
- --------- --------- --------- --------- --------- --------
<S> <C> <C> <C> <C> <C>
$ 3,247 $ 2,929 $ 825 $ 1,178 $ (356) $ (150)
85,750 43,439 19,934 22,198 11,274 3,207
-- -- -- -- -- --
(25,947) -- -- -- -- --
-- -- -- -- -- --
83,135 6,020 92,092 6,241 22,599 4,797
-- -- -- -- -- --
(375) -- -- -- -- --
-- -- -- -- -- --
- --------- --------- --------- --------- --------- --------
145,810 52,388 112,851 29,617 33,517 7,854
- --------- --------- --------- --------- --------- --------
(3,102) (2,697) (1,903) (324) -- (19)
(123) (140) (99) (5) -- --
(20) (34) -- (1) -- --
(39,325) (15,365) (9,965) (13,722) (3,321) (1,270)
(2,868) (848) (992) (1,103) (92) (15)
(2,274) (454) (1,103) (703) (39) (8)
- --------- --------- --------- --------- --------- --------
(47,712) (19,538) (14,062) (15,858) (3,452) (1,312)
========= ========= ========= ========= ========= ========
110,674 56,765 82,313 137,773 63,740 31,596
80,933 -- -- -- 46,861 --
-- -- -- -- -- --
35,430 14,489 9,670 12,244 1,052 340
(53,232) (54,570) (81,950) (91,574) (61,470) (6,880)
- --------- --------- --------- --------- --------- --------
173,805 16,684 10,033 58,443 50,183 25,056
- --------- --------- --------- --------- --------- --------
50,140 17,664 15,573 13,106 95,546 9,822
2,873 965 1,069 1,083 80 12
(40,915) (14,336) (12,175) (4,762) (93,700) (8,599)
- --------- --------- --------- --------- --------- --------
12,098 4,293 4,467 9,427 1,926 1,235
- --------- --------- --------- --------- --------- --------
18,981 6,794 7,413 20,498 374 546
2,246 475 1,083 685 40 8
(2,726) (676) (5,552) (1,808) (139) (66)
- --------- --------- --------- --------- --------- --------
18,501 6,593 2,944 19,375 275 488
- --------- --------- --------- --------- --------- --------
204,404 27,570 17,444 87,245 52,384 26,779
- --------- --------- --------- --------- --------- --------
302,502 60,420 116,233 101,004 82,449 33,321
278,662 218,242 312,134 211,130 75,691 42,370
========= ========= ========= ========= ========= ========
$ 581,164 $ 278,662 $ 428,367 $ 312,134 $ 158,140 $ 75,691
========= ========= ========= ========= ========= ========
5,214 3,051 4,368 8,026 4,420 2,283
4,323 -- -- -- 3,471 --
-- -- -- -- -- --
1,921 862 541 772 79 26
(2,555) (3,059) (4,353) (5,208) (4,311) (483)
- --------- --------- --------- --------- --------- --------
8,903 854 556 3,590 3,659 1,826
========= ========= ========= ========= ========= ========
2,393 971 737 765 6,638 701
156 57 60 69 6 1
(1,975) (796) (598) (275) (6,470) (605)
- --------- --------- --------- --------- --------- --------
574 232 199 559 174 97
========= ========= ========= ========= ========= ========
910 370 407 1,196 26 39
123 28 62 44 3 1
(136) (37) (305) (105) (10) (5)
- --------- --------- --------- --------- --------- --------
897 361 164 1,135 19 35
========= ========= ========= ========= ========= ========
10,374 1,447 919 5,284 3,852 1,958
========= ========= ========= ========= ========= ========
</TABLE>
<PAGE>
(WIDE TABLE CONTINUED)
<TABLE>
<CAPTION>
MICRO CAP INTERNATIONAL HEALTH TECHNOLOGY
VALUE FUND FUND SCIENCES FUND FUND
- --------- -------------------------- --------------------- ----------------------
8/9/97 10/1/96 10/1/95 10/1/96 1/31/96 10/1/96 10/1/95
to to to to to to to
9/30/97(3) 9/30/97 9/30/96 9/30/97 9/30/96(4) 9/30/97 9/30/96
- --------- --------- --------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
$ (7) $ 75 $ (77) $ 15 $ 29 $ (583) $ (332)
11,421 5,280 1,696 4,727 119 9,979 6,494
-- -- -- -- -- -- --
-- -- -- -- -- -- --
-- 11,283 1,198 -- -- -- --
10,789 33,294 (747) 4,407 (74) 15,172 5,242
-- -- -- -- -- -- --
-- -- -- -- -- -- --
-- (1,826) 714 -- -- -- --
- --------- --------- --------- -------- -------- --------- --------
22,203 48,106 2,784 9,149 74 24,568 11,404
- --------- --------- --------- -------- -------- --------- --------
-- (2,226)(5) (2,012)(5) (34) (9) -- --
-- (30)(5) (17)(5) -- -- -- --
-- (12)(5) (6)(5) -- -- -- --
-- -- -- (128) -- (6,933) (3,429)
-- -- -- (5) -- (379) (179)
-- -- -- (3) -- (555) (249)
- --------- --------- --------- -------- -------- --------- --------
-- (2,268) (2,035) (170) (9) (7,867) (3,857)
========= ========= ========= ======== ======== ========= ========
3,788 56,808 49,164 2,588 14,449 51,459 34,655
239,118 -- -- 26,179 -- 67,009 --
-- -- -- -- -- -- --
-- 1,223 1,290 38 2 1,962 826
(18,504) (19,454) (10,326) (8,779) (2,008) (51,305) (6,682)
- --------- --------- --------- -------- -------- --------- --------
224,402 38,577 40,128 20,026 12,443 69,125 28,799
- --------- --------- --------- -------- -------- --------- --------
41 87,168 2,008 471 618 82,163 11,478
-- 23 11 6 -- 354 176
-- (82,983) (960) (414) (4) (82,711) (8,918)
- --------- --------- --------- -------- -------- --------- --------
41 4,208 1,059 63 614 (194) 2,736
- --------- --------- --------- -------- -------- --------- --------
49 899 1,004 247 287 3,349 2,808
-- 12 5 3 -- 550 237
-- (306) (150) (105) (14) (1,127) (612)
- --------- --------- --------- -------- -------- --------- --------
49 605 859 145 273 2,772 2,433
- --------- --------- --------- -------- -------- --------- --------
224,492 43,390 42,046 20,234 13,330 71,703 33,968
- --------- --------- --------- -------- -------- --------- --------
246,695 89,228 42,795 29,213 13,395 88,404 41,515
0 138,377 95,582 13,395 -- 74,282 32,767
========= ========= ========= ======== ======== ========= ========
$ 246,695 $ 227,605 $ 138,377 $ 42,608 $ 13,395 $ 162,686 $ 74,282
========= ========= ========= ======== ======== ========= ========
367 4,877 4,841 253 1,478 3,046 2,102
23,912 -- -- 2,753 -- 3,862 --
-- -- -- -- -- -- --
-- 118 130 4 -- 116 54
(1,768) (1,681) (1,014) (860) (214) (3,046) (411)
- --------- --------- --------- -------- -------- --------- --------
22,511 3,314 3,957 2,150 1,264 3,978 1,745
========= ========= ========= ======== ======== ========= ========
4 7,347 199 45 64 4,834 667
-- 2 1 1 -- 21 12
-- (6,933) (94) (40) -- (4,829) (510)
- --------- --------- --------- -------- -------- --------- --------
4 416 106 6 64 26 169
========= ========= ========= ======== ======== ========= ========
5 79 100 24 30 209 167
-- 1 1 -- -- 33 16
-- (27) (15) (10) (1) (69) (37)
- --------- --------- --------- -------- -------- --------- --------
5 53 86 14 29 173 146
========= ========= ========= ======== ======== ========= ========
22,520 3,783 4,149 2,170 1,357 4,177 2,060
========= ========= ========= ======== ======== ========= ========
</TABLE>
(3) The Micro Cap Value Fund commenced operations on August 9, 1997.
(4) The Health Sciences Fund commenced operations on January 31, 1996.
(5) Represents a distribution in excess of net investment income due to the tax
treatment of foreign currency related transactions.
<PAGE>
FINANCIAL HIGHLIGHTS
For the periods ended September 30, 1997
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 FUND
INSTITUTIONAL CLASS
1997 $1.00 $0.052 $(0.052) $1.00 5.32% $3,615,873 0.45% 5.19% 0.52%
1996 1.00 0.052 (0.052) 1.00 5.34 3,166,213 0.45 5.20 0.54
1995 1.00 0.055 (0.055) 1.00 5.64 2,911,055 0.45 5.53 0.60
1994 1.00 0.035 (0.035) 1.00 3.56 1,307,347 0.45 3.58 0.60
1993 1.00 0.030 (0.030) 1.00 3.02 682,988 0.45 2.97 0.62
1992 1.00 0.039 (0.039) 1.00 4.02 203,765 0.45 3.90 0.59
1991 1.00 0.064 (0.064) 1.00 6.60 193,650 0.45 6.43 0.57
1990(1) 1.00 0.046 (0.046) 1.00 4.73+ 239,231 0.45 7.90 0.55
RETAIL CLASS A
1997 $1.00 $0.049 $(0.049) $1.00 5.06% $ 218,261 0.70% 4.95% 0.77%
1996 1.00 0.050 (0.050) 1.00 5.08 135,146 0.70 4.94 0.79
1995(2) 1.00 0.038 (0.038) 1.00 3.84+ 96,083 0.70 5.43 0.82%
RETAIL CLASS B
1997 $1.00 $0.042 $(0.042) $1.00 4.27% $ 2,018 1.45% 4,17% 1.52%
1996 1.00 0.042 (0.042) 1.00 4.29 1,763 1.45 4.15 1.54
1995(3) 1.00 0.032 (0.032) 1.00 3.28+ 14 1.45 4.70 1.57
CORPORATE TRUST CLASS
1997 $1.00 $0.050 $(0.050) $1.00 5.16% $ 113,064 0.60% 5.02% 0.67%
1996 1.00 0.051 (0.051) 1.00 5.18 109,213 0.60 4.98 0.69
1995(4) 1.00 0.038 (0.038) 1.00 3.86+ 9,735 0.60 5.51 0.72
GOVERNMENT OBLIGATIONS FUND
INSTITUTIONAL CLASS
1997 $1.00 $0.051 $(0.051) $1.00 5.20% $ 946,196 0.45% 5.07% 0.52%
1996 1.00 0.051 (0.051) 1.00 5.24 777,594 0.45 5.10 0.54
1995 1.00 0.054 (0.054) 1.00 5.55 551,286 0.45 5.44 0.60
1994 1.00 0.034 (0.034) 1.00 3.48 455,869 0.45 3.61 0.61
1993 1.00 0.028 (0.028) 1.00 2.87 237,331 0.45 2.83 0.65
1992 1.00 0.038 (0.038) 1.00 3.85 93,770 0.45 3.71 0.64
1991 1.00 0.060 (0.060) 1.00 6.22 72,824 0.45 5.90 0.68
1990(1) 1.00 0.045 (0.045) 1.00 4.56+ 29,704 0.45 7.60 0.98
CORPORATE TRUST CLASS
1997 $1.00 $0.049 $(0.049) $1.00 5.04% $ 337,199 0.60% 4.92% 0.67%
1996 1.00 0.050 (0.050) 1.00 5.08 269,382 0.60 4.96 0.69
1995(2) 1.00 0.038 (0.038) 1.00 3.85+ 198,859 0.60 5.45 0.70
TREASURY OBLIGATIONS FUND
INSTITUTIONAL CLASS
1997 $1.00 $0.050 $(0.050) $1.00 5.14% $ 897,797 0.45% 5.03% 0.53%
1996 1.00 0.050 (0.050) 1.00 5.15 317,392 0.45 5.00 0.55
1995(4) 1.00 0.038 (0.038) 1.00 3.83+ 117,171 0.45 5.50 0.55
CORPORATE TRUST CLASS
1997 $1.00 $0.049 $(0.049) $1.00 4.98% $2,847,215 0.60% 4.88% 0.68%
1996 1.00 0.049 (0.049) 1.00 5.00 1,616,130 0.60 4.86 0.70
1995 1.00 0.051 (0.051) 1.00 5.22 1,038,818 0.60 5.13 0.70
1994(5) 1.00 0.031 (0.031) 1.00 3.12+ 746,090 0.58 3.19 0.68
</TABLE>
+ Returns are for the period indicated and have not been annualized.
(1) Commenced operations on March 1, 1990. All ratios for the period have been
annualized.
(2) Commenced operations on January 21, 1995. All ratios for the period have
been annualized.
(3) Commenced operations on January 23, 1995. All ratios for the period have
been annualized.
(4) Commenced operations on January 24, 1995. All ratios for the period have
been annualized.
(5) Commenced operations on October 4, 1993. All ratios for the period have
been annualized.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
Financial Highlights
For the periods ended September 30, 1997
For a share outstanding throughout the period
<TABLE>
<CAPTION>
REALIZED AND
UNREALIZED DIVIDENDS
NET ASSET NET GAINS OR FROM NET DISTRIBUTIONS
VALUE BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM
OF PERIOD INCOME INVESTMENTS INCOME CAPITAL GAINS
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
LIMITED TERM INCOME FUND
INSTITUTIONAL CLASS
1997 $ 9.91 $ 0.56 $ 0.03 $ (0.56) $ --
1996 9.92 0.58 (0.01) (0.58) --
1995 9.85 0.56 0.07 (0.56) --
1994(1) 10.02 0.29 (0.17) (0.29) --
RETAIL CLASS A
1997 $ 9.91 $ 0.56 $ 0.03 $ (0.56) $ --
1996 9.92 0.58 (0.01) (0.58) --
1995 9.85 0.56 0.07 (0.56) --
1994 10.06 0.44 (0.22) (0.43) --
1993(2) 10.00 0.29 0.07 (0.30) --
INTERMEDIATE TERM INCOME FUND
INSTITUTIONAL CLASS
1997 $ 9.93 $ 0.55 $ 0.13 $ (0.56) $ (0.07)
1996 9.94 0.55 -- (0.55) (0.01)
1995 9.55 0.58 0.39 (0.58) --
1994(1) 10.01 0.31 (0.46) (0.31) --
RETAIL CLASS A
1997 $ 9.93 $ 0.55 $ 0.15 $ (0.56) $ (0.07)
1996 9.94 0.55 -- (0.55) (0.01)
1995 9.55 0.59 0.38 (0.58) --
1994 10.22 0.46 (0.56) (0.46) (0.11)
1993(2) 10.00 0.41 0.29 (0.41) (0.07)
INTERMEDIATE GOVERNMENT BOND FUND
INSTITUTIONAL CLASS
1997 $ 9.18 $ 0.54 $ 0.09 $ (0.54) $ --
1996 9.29 0.54 (0.11) (0.54) --
1995 8.98 0.54 0.31 (0.54) --
1994(1) 9.41 0.27 (0.43) (0.27) --
RETAIL CLASS A
1997 $ 9.19 $ 0.54 $ 0.09 $ (0.54) $ --
1996 9.29 0.54 (0.10) (0.54) --
1995 8.98 0.54 0.31 (0.54) --
1994 9.52 0.41 (0.51) (0.39) (0.05)
1993 10.18 0.44 0.02 (0.44) (0.68)
1992 10.25 0.60 0.28 (0.60) (0.35)
1991(3) 10.01 0.65 0.24 (0.65) --
1990(4) 10.05 0.75 (0.04) (0.75) --
1989(4) 9.99 0.74 0.06 (0.74) --
1988(4)(5) 10.03 0.58 (0.01) (0.61) --
FIXED INCOME FUND
INSTITUTIONAL CLASS
1997 $ 10.76 $ 0.62 $ 0.27 $ (0.62) $ (0.07)
1996 10.97 0.63 (0.11) (0.63) (0.10)
1995 10.37 0.66 0.62 (0.65) (0.03)
1994(1) 11.11 0.38 (0.74) (0.38) --
RETAIL CLASS A
1997 $ 10.77 $ 0.59 $ 0.27 $ (0.59) $ (0.07)
1996 10.98 0.61 (0.11) (0.61) (0.10)
1995 10.37 0.66 0.61 (0.63) (0.03)
1994 11.38 0.57 (0.89) (0.57) (0.12)
1993 11.13 0.62 0.36 (0.61) (0.12)
1992 10.59 0.66 0.60 (0.66) (0.06)
1991(3) 10.01 0.65 0.58 (0.65) --
1990(4) 10.44 0.74 (0.26) (0.74) (0.17)
1989(4) 10.13 0.74 0.31 (0.74) --
1988(4)(5) 10.03 0.62 0.13 (0.65) --
RETAIL CLASS B
1997 $ 10.72 $ 0.51 $ 0.26 $ (0.51) $ (0.07)
1996 10.94 0.52 (0.11) (0.53) (0.10)
1995 10.35 0.58 0.60 (0.56) (0.03)
1994(6) 10.54 0.08 (0.17) (0.10) --
</TABLE>
<PAGE>
(WIDE TABLE CONTINUED)
<TABLE>
<CAPTION>
RATIO OF
RATIO OF NET EXPENSES TO
NET ASSET RATIO OF INVESTMENT AVERAGE
VALUE NET ASSETS EXPENSES TO INCOME TO NET ASSETS PORTFOLIO
END OF TOTAL END OF AVERAGE AVERAGE (EXCLUDING TURNOVER
PERIOD RETURN (A) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) RATE
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
LIMITED TERM INCOME FUND
INSTITUTIONAL CLASS
1997 $ 9.94 6.09% $184,368 0.60% 5.60% 0.90% 147%
1996 9.91 5.93 93,588 0.60 5.80 0.84 61
1995 9.92 6.57 111,439 0.60 5.67 0.97 120
1994(1) 9.85 1.24+ 70,266 0.60 4.40 1.03 48
RETAIL CLASS A
1997 $ 9.94 6.09% $ 7,152 0.60% 5.61% 1.15% 147%
1996 9.91 5.93 7,627 0.60 5.80 1.09 61
1995 9.92 6.57 9,977 0.60 5.60 1.22 120
1994 9.85 2.21 9,509 0.60 4.17 1.23 48
1993(2) 10.06 3.61+ 121,800 0.60 3.61 1.27 104
INTERMEDIATE TERM INCOME FUND
INSTITUTIONAL CLASS
1997 $ 9.98 6.98% $324,250 0.70% 5.51% 0.92% 165%
1996 9.93 5.63 98,702 0.70 5.45 0.88 161
1995 9.94 10.51 88,375 0.70 5.94 0.94 69
1994(1) 9.55 (1.48)+ 68,445 0.58 4.81 1.07 177
RETAIL CLASS A
1997 $ 10.00 7.19% $ 2,484 0.70% 5.51% 1.17% 165%
1996 9.93 5.63 2,213 0.70 5.43 1.13 161
1995 9.94 10.51 2,437 0.70 5.97 1.19 69
1994 9.55 (1.05) 3,208 0.69 2.48 1.24 177
1993(2) 10.22 7.21+ 67,291 0.70 4.90 1.29 163
INTERMEDIATE GOVERNMENT BOND FUND
INSTITUTIONAL CLASS
1997 $ 9.27 7.07% $181,889 0.70% 5.88% 0.87% 22%
1996 9.18 4.74 140,230 0.70 5.85 0.85 29
1995 9.29 9.82 100,168 0.70 6.13 0.97 17
1994(1) 8.98 (1.66)+ 27,776 0.36 5.32 1.45 74
RETAIL CLASS A
1997 $ 9.28 7.06% $ 3,525 0.70% 5.88% 1.12% 22%
1996 9.19 4.85 3,320 0.70 5.85 1.10 29
1995 9.29 9.82 2,860 0.70 6.10 1.22 17
1994 8.98 (1.13) 1,977 0.53 4.49 2.14 74
1993 9.52 4.99 3,716 0.71 4.00 4.73 182
1992 10.18 8.88 589 0.99 6.03 14.14 101
1991(3) 10.25 9.13+ 1,756 0.99 6.99 6.76 100
1990(4) 10.01 7.41 1,573 1.08 7.57 5.55 40
1989(4) 10.05 8.35 1,501 1.19 7.49 9.65 72
1988(4)(5) 9.99 6.18+ 375 0.95 6.78 17.20 0
FIXED INCOME FUND
INSTITUTIONAL CLASS
1997 $ 10.96 8.54% $705,719 0.70% 5.71% 0.88% 130%
1996 10.76 4.90 391,211 0.70 5.81 0.87 108
1995 10.97 12.86 289,816 0.70 6.28 0.94 106
1994(1) 10.37 (3.23)+ 90,187 0.61 5.53 0.92 142
RETAIL CLASS A
1997 $ 10.97 8.26% $ 8,535 0.95% 5.44% 1.13% 130%
1996 10.77 4.64 8,332 0.95 5.55 1.12 108
1995 10.98 12.78 7,853 0.86 6.14 1.19 106
1994 10.37 (2.92) 8,028 0.68 3.83 1.06 142
1993 11.38 9.20 53,601 0.70 5.65 1.14 91
1992 11.13 12.34 5,645 0.99 6.12 2.68 180
1991(3) 10.59 12.48+ 6,045 0.99 6.85 4.11 176
1990(4) 10.01 5.14 2,209 1.07 7.49 5.46 144
1989(4) 10.44 10.93 555 1.22 7.26 22.44 157
1988(4)(5) 10.13 8.07+ 240 0.96 7.18 20.70 93
RETAIL CLASS B
1997 $ 10.91 7.40% $ 15,253 1.70% 4.68% 1.88% 130%
1996 10.72 3.93 16,092 1.70 4.81 1.87 108
1995 10.94 11.75 7,280 1.70 5.12 1.94 106
1994(6) 10.35 (0.88)+ 115 1.70 4.89 1.92 142
</TABLE>
+ Returns are for the period indicated and have not been annualized.
(A) Excluding sales charges.
(1) Institutional Class shares have been offered since February 4, 1994. All
ratios for the period have been annualized.
(2) Commenced operations on December 14, 1992. All ratios for the period have
been annualized.
(3) On September 3, 1991, the Board of Directors of FAIF approved a change in
the FAIF's fiscal year end from October 31 to September 30, effective
September 30, 1991. All ratios for the period have been annualized.
(4) For the period ended October 31.
(5) Commenced operations on December 22, 1987. All ratios for the period have
been annualized.
(6) Retail Class B shares have been offered since August 15, 1994. All ratios
for the period have been annualized.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
FINANCIAL HIGHLIGHTS
For the periods ended september 30, 1997
For a share outstanding throughout the period
<TABLE>
<CAPTION>
REALIZED
AND
NET ASSET UNREALIZED DIVIDENDS NET ASSET NET ASSETS
VALUE NET GAINS OR FROM NET DISTRIBUTIONS VALUE TOTAL END OF
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM END OF RETURN PERIOD
OF PERIOD INCOME INVESTMENTS INCOME CAPITAL GAINS PERIOD (A) (000)
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CALIFORNIA INTERMEDIATE TAX FREE FUND
INSTITUTIONAL CLASS
1997(1) $ 10.00 $ 0.06 $ 0.03 $ (0.06) $ -- $ 10.03 0.92% $ 33,287
RETAIL CLASS A
1997(1) $ 10.00 $ 0.06 0.04 $ (0.06) $ -- $ 10.04 1.02% $ 1
COLORADO INTERMEDIATE TAX FREE FUND
INSTITUTIONAL CLASS
1997 $ 10.42 $ 0.48 $ 0.24 $ (0.48) $ (0.05) $ 10.61 7.11% $ 54,378
1996 10.51 0.49 (0.04) (0.49) (0.05) 10.42 4.39 48,927
1995 10.16 0.48 0.36 (0.49) -- 10.51 8.47 50,071
1994(7) 10.00 0.22 0.16 (0.22) -- 10.16 3.76+ 7,281
RETAIL CLASS A
1997 $ 10.42 $ 0.48 $ 0.24 $ (0.48) $ (0.05) $ 10.61 7.11% $ 4,187
1996 10.51 0.49 (0.04) (0.49) (0.05) 10.42 4.39 2,861
1995 10.15 0.49 0.36 (0.49) -- 10.51 8.57 2,189
1994(7) 10.00 0.21 0.16 (0.22) -- 10.15 3.66+ 693
MINNESOTA INSURED INTERMEDIATE TAX FREE FUND
INSTITUTIONAL CLASS
1997 $ 9.91 $ 0.44 $ 0.18 $ (0.44) $ (0.03) 10.06 6.42% $297,122
1996 9.92 0.45 0.02 (0.45) (0.03) 9.91 4.80 93,394
1995 9.59 0.45 0.33 (0.45) -- 9.92 8.34 61,693
1994(6) 10.00 0.25 (0.41) (0.25) -- 9.59 (1.58)+ 20,272
RETAIL CLASS A
1997 $ 9.91 $ 0.44 $ 0.21 $ (0.44) $ (0.44) 10.09 6.72% $ 7,453
1996 9.92 0.45 0.02 (0.45) (0.03) 9.91 4.80 3,916
1995 9.58 0.46 0.33 (0.45) -- 9.92 8.46 2,219
1994(6) 10.00 0.25 (0.42) (0.25) -- 9.58 (1.68)+ 1,508
OREGON INTERMEDIATE TAX FREE FUND
INSTITUTIONAL CLASS
1997(1) $ 10.00 $ 0.07 $ 0.05 $ (0.07) $ -- $ 10.05 1.17% $182,069
INTERMEDIATE TAX FREE FUND
INSTITUTIONAL CLASS
1997 $ 10.65 $ 0.47 $ 0.23 $ (0.47) $ (0.06) $ 10.82 6.75% $431,000
1996 10.72 0.46 0.00 (0.46) (0.07) 10.65 4.35 66,994
1995 10.28 0.49 0.43 (0.48) -- 10.72 9.15 46,025
1994(2) 10.89 0.29 (0.61) (0.29) -- 10.28 (2.91)+ 6,168
RETAIL CLASS A
1997 $ 10.66 $ 0.47 $ 0.24 $ (0.47) $ (0.06) $ 10.84 6.84% $ 3,849
1996 10.72 0.46 0.01 (0.46) (0.07) 10.66 4.45 2,618
1995 10.28 0.49 0.43 (0.48) -- 10.72 9.15 983
1994 10.92 0.44 (0.57) (0.44) (0.07) 10.28 (1.25) 1,128
1993 10.56 0.47 0.42 (0.47) (0.06) 10.92 8.66 2,969
1992 10.34 0.53 0.22 (0.53) -- 10.56 7.23 725
1991(3) 10.04 0.50 0.31 (0.50) (0.01) 10.34 8.15+ 637
1990(4) 10.08 0.56 (0.04) (0.56) -- 10.04 5.31 537
1989(4) 10.19 0.56 (0.11) (0.56) -- 10.08 4.57 491
1988(4)(5) 10.03 0.47 0.16 (0.47) -- 10.19 6.73+ 425
ASSET ALLOCATION FUND
INSTITUTIONAL CLASS
1997 $ 12.34 $ 0.42 $ 1.83 $ (0.43) $ (1.09) $ 13.07 19.69% $108,821
1996 11.72 0.37 1.03 (0.37) (0.41) 12.34 12.37 54,781
1995 10.38 0.38 1.58 (0.37) (0.25) 11.72 19.75 43,210
1994(2) 10.68 0.20 (0.30) (0.20) -- 10.38 (0.90)+ 47,227
RETAIL CLASS A
1997 $ 12.35 $ 0.39 $ 1.83 $ (0.40) $ (1.09) $ 13.08 19.39% $ 2,368
1996 11.73 0.34 1.03 (0.34) (0.41) 12.35 12.09 1,841
1995 10.39 0.36 1.58 (0.35) (0.25) 11.73 19.51 993
1994 10.60 0.27 (0.08) (0.26) (0.14) 10.39 1.81 707
1993(8) 10.00 0.19 0.60 (0.19) -- 10.60 8.01+ 56,393
RETAIL CLASS B
1997 $ 12.29 $ 0.30 $ 1.82 $ (0.31) $ (1.09) $ 13.01 18.55% $ 4,958
1996 11.68 0.25 1.02 (0.25) (0.41) 12.29 11.29 2,300
1995 10.37 0.27 1.57 (0.28) (0.25) 11.68 18.51 571
1994(9) 10.40 0.05 (0.03) (0.05) -- 10.37 0.19+ 11
</TABLE>
[WIDE TABLE CONTINUED FROM ABOVE]
<TABLE>
<CAPTION>
RATIO OF RATIO OF
NET EXPENSES TO
RATIO OF INVESTMENT AVERAGE AVERAGE
EXPENSES TO INCOME TO NET ASSETS PORTFOLIO COMMISSION
AVERAGE AVERAGE (EXCLUDING TURNOVER RATE
NET ASSETS NET ASSETS WAIVERS) RATE (B)
- ----------------------------------------------------------------
<S> <C> <C> <C> <C>
0.69% 4.14% 1.11% 3% $ --
0.69% 4.48 1.36% 3% $ --
0.70% 4.55% 0.91% 11% $ --
0.70 4.69 0.93 20 --
0.70 4.84 1.02 19 --
0.69 4.51 4.71 4 --
0.70% 4.55% 1.16% 11% $ --
0.70 4.69 1.18 20 --
0.70 4.83 1.27 19 --
0.69 4.51 4.96 4 --
0.70% 4.47% 0.90% 20% $ --
0.70 4.53 0.93 19 --
0.70 4.76 1.00 38 --
0.67 4.57 1.59 22 --
0.70% 4.49% 1.15% 20% $ --
0.70 4.52 1.18 19 --
0.70 4.74 1.25 38 --
0.67 4.57 1.84 22 --
0.70% 4.55% 1.09 4% $ --
0.67% 4.40% 0.93% 66% $ --
0.66 4.35 0.92 53 --
0.67 4.73 1.05 68 --
0.45 4.48 2.20 52 --
0.67% 4.41% 1.18% 66% $ --
0.66 4.35 1.17 53 --
0.67 4.71 1.30 68 --
0.59 4.13 2.78 52 --
0.71 4.31 5.09 27 --
0.99 4.83 16.09 23 --
0.99 5.35 15.48 15 --
1.08 5.58 13.85 4 --
1.09 5.57 19.55 4 --
0.84 5.87 13.60 0 --
0.80% 3.50% 0.93% 51% $0.0400
0.80 3.08 1.03 57 0.0409
0.79 3.53 1.01 87 --
0.75 2.91 1.12 32 --
1.05% 3.23% 1.18% 51% $0.0400
1.05 2.84 1.28 57 0.0409
0.99 3.29 1.26 87 --
0.75 2.01 1.29 32 --
0.75 2.40 1.34 31 --
1.80% 2.53% 1.93% 51% $0.0400
1.80 2.12 2.03 57 0.0409
1.79 2.35 2.01 87 --
1.75 1.94 2.12 32 --
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
FINANCIAL HIGHLIGHTS
For the periods ended september 30, 1997
For a share outstanding throughout the period
<TABLE>
<CAPTION>
REALIZED
AND
NET ASSET UNREALIZED DIVIDENDS DISTRIBUTIONS NET ASSET
VALUE NET GAINS OR FROM NET DISTRIBUTIONS FROM VALUE TOTAL
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM RETURN END OF RETURN
OF PERIOD INCOME INVESTMENTS INCOME CAPITAL GAINS OF CAPITAL PERIOD (A)
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
BALANCED FUND
INSTITUTIONAL CLASS
1997 $ 13.15 $ 0.42 $ 2.86 $ (0.42) $ (0.58) $ -- $ 15.43 26.17%
1996 12.13 0.42 1.43 (0.42) (0.41) -- 13.15 15.89
1995 10.54 0.40 1.73 (0.39) (0.15) -- 12.13 20.89
1994(2) 10.86 0.25 (0.32) (0.25) -- -- 10.54 (0.64)+
RETAIL CLASS A
1997 $ 13.14 $ 0.39 $ 2.85 $ (0.39) $ (0.58) $ -- $ 15.41 25.80%
1996 12.12 0.39 1.43 (0.39) (0.41) -- 13.14 15.61
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(8) 10.00 0.28 0.75 (0.28) (0.02) -- 10.73 10.39+
RETAIL CLASS B
1997 $ 13.10 $ 0.29 $ 2.84 $ (0.29) $ (0.58) $ -- $ 15.36 24.93%
1996 12.09 0.31 1.42 (0.31) (0.41) -- 13.10 14.78
1995 10.53 0.29 1.71 (0.29) (0.15) -- 12.09 19.58
1994(9) 10.66 0.06 (0.12) (0.07) -- -- 10.53 (0.55)+
REAL ESTATE SECURITIES FUND
INSTITUTIONAL CLASS
1997 $ 11.53 $ 0.74 $ 3.43 $ (0.67) $ (0.03) $ (0.01) $ 14.99 37.07%
1996 10.37 0.57 1.29 (0.53) -- (0.17) 11.53 18.53
1995(10) 10.00 0.13 0.39 (0.11) -- (0.04) 10.37 5.19+
RETAIL CLASS A
1997 $ 11.52 $ 0.72 $ 3.42 $ (0.65) $ (0.03) $ (0.01) $ 14.97 36.77%
1996 10.38 0.52 1.30 (0.51) -- (0.17) 11.52 18.17
1995(11) 10.37 -- 0.01 -- -- -- 10.38 0.00
RETAIL CLASS B
1997 $ 11.46 $ 0.63 $ 3.38 $ (0.57) $ (0.03) $ (0.01) $ 14.86 35.77%
1996 10.37 0.44 1.27 (0.45) -- (0.17) 11.46 17.00
1995(11) 10.37 -- -- -- -- -- 10.37 0.00
</TABLE>
[WIDE TABLE CONTINUED FROM ABOVE]
<TABLE>
<CAPTION>
RATIO OF RATIO OF
NET EXPENSES TO
NET ASSETS RATIO OF INVESTMENT AVERAGE
END OF EXPENSES TO INCOME TO NET ASSETS PORTFOLIO AVERAGE
PERIOD AVERAGE AVERAGE (EXCLUDING TURNOVER COMMISSION
(000) NET ASSETS NET ASSETS WAIVERS) RATE RATE
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 418,087 0.80% 2.99% 0.88% 84% $ 0.0700
332,786 0.80 3.31 0.89 73 0.0619
192,145 0.79 3.61 0.94 77 --
125,285 0.75 3.51 1.05 98 --
$ 32,309 1.05% 2.74% 1.13% 84% $ 0.0700
20,927 1.05 3.05 1.14 73 0.0619
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 --
$ 43,707 1.80% 1.99% 1.88% 84% $ 0.0700
15,542 1.80 2.32 1.89 73 0.0619
3,120 1.79 2.60 1.94 77 --
270 1.75 2.80 2.05 98
$ 40,501 0.80% 4.57% 1.05% 14% $ 0.0700
17,895 0.80 5.13 1.51 8 0.0704
5,756 0.80 6.01 2.34 0 --
$ 2,105 1.05% 4.46% 1.30% 14% $ 0.0700
226 1.05 4.36 1.76 8 0.0704
1 1.05 0.00 2.59 0 --
$ 3,318 1.80% 3.61% 2.00% 14% $ 0.0700
263 1.80 4.29 2.51 8 0.0704
1 1.80 0.00 3.34 0 --
</TABLE>
* All ratios for the period have been annualized.
+ Returns are for the period indicated and have not been annualized.
(A) Excluding sales charges.
(B) Beginning in 1996, average commision rate paid per share is disclosed for
all applicable security purchases and sales subject to commissions. The
comparability of this information may be affected by the fact that
commission rates per share vary significantly among foreign countries.
(1) Commenced operations on August 8, 1997. All ratios for the period have been
annualized.
(2) Institutional Class shares have been offered since February 4, 1994. All
ratios for the period have been annualized.
(3) On September 3, 1991, the Board of Directors of FAIF approved a change in
the FAIF's fiscal year end from October 31 to September 30, effective
September 30, 1991. All ratios for the period have been annualized.
(4) For the period ended October 31.
(5) Commenced operations on December 22, 1987. All ratios for the period have
been annualized.
(6) Commenced operations on February 25, 1994. All ratios for the period have
been annualized.
(7) Commenced operations on April 4, 1994. All ratios for the period have been
annualized.
(8) Commenced operations on December 14, 1992. All ratios for the period have
been annualized.
(9) Retail Class B shares have been offered since August 15, 1994. 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
FINANCIAL HIGHLIGHTS
For the periods ended September 30, 1997
For a share outstanding throughout the period
<TABLE>
<CAPTION>
REALIZED
AND
NET ASSET UNREALIZED DIVIDENDS NET ASSET NET ASSETS
VALUE NET GAINS OR FROM NET DISTRIBUTIONS VALUE TOTAL END OF
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM END OF RETURN PERIOD
OF PERIOD INCOME INVESTMENTS INCOME CAPITAL GAINS PERIOD (A) (000)
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
EQUITY INCOME FUND
INSTITUTIONAL CLASS
1997 $ 12.66 $0.43 $ 3.40 $ (0.44) $ (0.35) $ 15.70 31.45% $ 369,919
1996 11.24 0.42 1.43 (0.42) (0.01) 12.66 16.79 64,590
1995 9.89 0.41 1.35 (0.41) -- 11.24 18.24 52,126
1994(1) 9.90 0.07 (0.03) (0.05) -- 9.89 0.45+ 17,489
RETAIL CLASS A
1997 $ 12.65 $0.40 $ 3.40 $ (0.41) $ (0.35) $ 15.69 31.16% $ 7,276
1996 11.24 0.39 1.42 (0.39) (0.01) 12.65 16.41 2,581
1995 9.89 0.41 1.33 (0.39) -- 11.24 18.06 1,995
1994(2) 9.87 0.41 -- (0.39) -- 9.89 4.22+ 1,852
1993(3)(4) 10.00 0.57 (0.14) (0.56) -- 9.87 4.44+ 28,786
RETAIL CLASS B
1997 $ 12.61 $0.29 $ 3.37 $ (0.30) $ (0.35) $ 15.62 30.06% $ 6,619
1996 11.20 0.31 1.42 (0.31) (0.01) 12.61 15.66 3,770
1995 9.88 0.33 1.32 (0.33) -- 11.20 17.10 1,233
1994(5) 9.87 0.04 0.02 (0.05) -- 9.88 0.57+ 1
EQUITY INDEX FUND
INSTITUTIONAL CLASS
1997 $ 15.47 $0.29 $ 5.70 $ (0.29) $ (0.43) $ 20.74 39.85% $ 557,258
1996 13.34 0.31 2.31 (0.31) (0.18) 15.47 19.98 348,539
1995 10.67 0.28 2.75 (0.27) (0.09) 13.34 29.17 218,932
1994(6) 10.85 0.20 (0.18) (0.20) -- 10.67 0.18+ 163,688
RETAIL CLASS A
1997 $ 15.49 $0.12 $ 5.70 $ (0.12) $ (0.43) $ 20.76 39.47% $ 15,977
1996 13.35 0.27 2.32 (0.27) (0.18) 15.49 19.75 6,221
1995 10.68 0.25 2.76 (0.25) (0.09) 13.35 28.90 2,140
1994 10.60 0.25 0.09 (0.25) (0.01) 10.68 3.25 758
1993(7) 10.00 0.20 0.60 (0.20) -- 10.60 8.02+ 139,957
RETAIL CLASS B
1997 $ 15.43 $0.12 $ 5.67 $ (0.12) $ (0.43) $ 20.67 38.45% $ 23,733
1996 13.30 0.17 2.31 (0.17) (0.18) 15.43 18.95 8,252
1995 10.66 0.23 2.68 (0.18) (0.09) 13.30 27.87 1,197
1994(5) 10.68 0.01 0.04 (0.07) -- 10.66 0.48+ 29
STOCK FUND
INSTITUTIONAL CLASS
1997 $ 22.60 $0.39 $ 7.90 $ (0.38) $ (1.76) $ 28.75 39.13% $1,095,262
1996 19.56 0.42 4.09 (0.42) (1.05) 22.60 24.32 471,206
1995 16.50 0.36 3.64 (0.35) (0.59) 19.56 25.50 312,559
1994(6) 16.47 0.25 0.03 (0.25) -- 16.50 1.70+ 154,949
RETAIL CLASS A
1997 $ 22.59 $0.33 $ 7.90 $ (0.32) $ (1.76) $ 28.74 38.82% $ 50,381
1996 19.57 0.36 4.07 (0.36) (1.05) 22.59 23.90 22,965
1995 16.51 0.33 3.64 (0.32) (0.59) 19.57 25.26 13,076
1994 16.00 0.31 1.00 (0.30) (0.50) 16.51 8.35 8,421
1993 14.04 0.22 1.99 (0.23) (0.02) 16.00 15.82 134,186
1992 13.62 0.24 0.81 (0.29) (0.34) 14.04 7.88 3,644
1991(8) 10.64 0.28 2.95 (0.22) (0.03) 13.62 30.49+ 2,386
1990(9) 12.09 0.25 (1.17) (0.25) (0.28) 10.64 (8.22) 1,161
1989(9) 10.35 0.25 1.70 (0.20) (0.01) 12.09 20.33 323
1988(9)(10) 10.03 0.27 0.35 (0.30) -- 10.35 6.40+ 206
RETAIL CLASS B
1997 $ 22.50 $0.18 $ 7.81 $ (0.18) $ (1.76) $ 28.55 37.71% $ 53,420
1996 19.49 0.22 4.06 (0.22) (1.05) 22.50 23.08 23,316
1995 16.49 0.26 3.55 (0.22) (0.59) 19.49 24.20 7,051
1994(5) 16.65 0.03 (0.10) (0.09) -- 16.49 (0.43)+ 346
DIVERSIFIED GROWTH FUND
INSTITUTIONAL CLASS
1997 $ 13.66 $0.12 $ 4.26 $ (0.13) $ (0.27) $ 17.64 32.75% $ 681,151
1996 11.78 0.18 1.88 (0.18) -- 13.66 17.58 225,900
1995 9.10 0.17 2.67 (0.16) -- 11.78 31.57 132,854
1994(1) 8.92 0.03 0.18 (0.03) -- 9.10 2.36+ 31,875
RETAIL CLASS A
1997 $ 13.63 $0.09 $ 4.28 $ (0.10) $ (0.27) $ 17.63 32.69% $ 12,017
1996 11.75 0.15 1.88 (0.15) -- 13.63 17.38 5,318
1995 9.09 0.15 2.66 (0.15) -- 11.75 31.21 2,710
1994(2) 9.39 0.10 (0.29) (0.11) -- 9.09 (2.07)+ 1,900
1993(3)(4) 10.00 0.11 (0.63) (0.09) -- 9.39 (5.18)+ 31,084
RETAIL CLASS B
1997 $ 13.57 $0.01 $ 4.18 $ (0.02) $ (0.27) $ 17.47 31.42% $ 9,487
1996 11.73 0.08 1.84 (0.08) -- 13.57 16.41 5,775
1995 9.09 0.09 2.65 (0.10) -- 11.73 30.29 819
1994(5) 8.87 0.01 0.23 (0.02) -- 9.09 2.75+ 12
</TABLE>
[WIDE TABLE CONTINUED FROM ABOVE]
<TABLE>
<CAPTION>
RATIO OF RATIO OF
NET EXPENSES TO
RATIO OF INVESTMENT AVERAGE AVERAGE
EXPENSES TO INCOME TO NET ASSETS PORTFOLIO COMMISSION
AVERAGE AVERAGE (EXCLUDING TURNOVER RATE
NET ASSETS NET ASSETS WAIVERS) RATE (B)
- ------------------------------------------------------------------
<S> <C> <C> <C> <C>
0.75% 3.12% 0.92% 39% $ 0.0571
0.75 3.50 0.95 23 0.0700
0.75 4.11 1.06 23 --
0.75 5.61 1.14 108 --
1.00% 2.96% 1.17% 39% $ 0.0571
1.00 3.25 1.20 23 0.0700
0.92 3.91 1.31 23 --
0.88 4.88 1.39 108 --
0.75 6.09 1.36 68 --
1.75% 2.19% 1.92% 39% $ 0.0571
1.75 2.49 1.95 23 0.0700
1.75 3.05 2.06 23 --
1.75 4.39 2.14 108 --
0.35% 1.62% 0.88% 8% $ 0.0419
0.35 2.14 0.90 10 0.0377
0.35 2.41 0.95 9 --
0.35 2.59 1.03 11 --
0.60% 1.36% 1.13% 8% $ 0.0419
0.60 1.87 1.15 10 0.0377
0.57 2.16 1.20 9 --
0.35 2.23 1.23 11 --
0.35 2.52 1.30 1 --
1.35% 0.61% 1.88% 8% $ 0.0419
1.35 1.11 1.90 10 0.0377
1.35 1.34 1.95 9 --
1.35 1.68 2.03 11 --
0.80% 1.39% 0.89% 57% $ 0.0640
0.80 1.90 0.88 40 0.0653
0.79 2.10 0.94 52 --
0.75 2.28 1.01 65 --
1.05% 1.14% 1.14% 57% $ 0.0640
1.05 1.64 1.13 40 0.0653
1.00 1.89 1.19 52 --
0.76 1.51 1.20 65 --
0.75 1.94 1.28 48 --
1.45 1.75 4.46 39 --
1.45 2.47 7.42 76 --
1.45 2.24 9.47 41 --
1.24 2.26 36.39 74 --
1.02 2.67 28.60 80 --
1.80% 0.39% 1.89% 57% $ 0.0640
1.80 0.89 1.88 40 0.0653
1.79 1.10 1.94 52 --
1.75 1.58 2.01 65 --
0.80% 0.77% 0.89% 34% $ 0.0633
0.79 1.39 0.92 21 0.0593
0.75 1.69 1.01 28 --
0.75 2.37 1.08 101 --
1.05% 0.57% 1.14% 34% $ 0.0633
1.04 1.13 1.17 21 0.0593
0.92 1.52 1.26 28 --
0.90 1.15 1.33 101 --
0.78 1.26 1.25 5 --
1.80% (0.18%) 1.89% 34% $ 0.0633
1.79 0.36 1.92 21 0.0593
1.75 0.58 2.01 28 --
1.75 1.20 2.08 101 --
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
FINANCIAL HIGHLIGHTS
For the periods ended september 30, 1997
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
OF PERIOD INCOME (LOSS) INVESTMENTS INCOME CAPITAL GAINS PERIOD
---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SPECIAL EQUITY FUND
INSTITUTIONAL CLASS
1997 $ 20.43 $ 0.16 $ 6.98 $ (0.16) $ (3.20) $ 24.21
1996 17.89 0.25 3.95 (0.24) (1.42) 20.43
1995 17.30 0.38 1.61 (0.38) (1.02) 17.89
1994(6) 16.34 0.22 0.96 (0.22) -- 17.30
RETAIL CLASS A
1997 $ 20.41 $ 0.11 $ 6.98 $ (0.11) $ (3.20) $ 24.19
1996 17.89 0.20 3.94 (0.20) (1.42) 20.41
1995 17.30 0.35 1.60 (0.34) (1.02) 17.89
1994 15.81 0.28 2.52 (0.28) (1.03) 17.30
1993 13.61 0.23 2.32 (0.25) (0.10) 15.81
1992 12.98 0.21 1.61 (0.27) (0.92) 13.61
1991(8) 10.33 0.30 2.61 (0.26) -- 12.98
1990(9) 12.96 0.47 (2.03) (0.46) (0.61) 10.33
1989(9) 11.55 0.47 1.39 (0.41) (0.04) 12.96
1988(9)(10) 10.03 0.34 1.57 (0.39) -- 11.55
RETAIL CLASS B
1997 $ 20.31 $ 0.02 $ 6.85 $ (0.02) $ (3.20) $ 23.96
1996 17.83 0.09 3.91 (0.10) (1.42) 20.31
1995 17.29 0.29 1.51 (0.24) (1.02) 17.83
1994(5) 16.51 0.01 0.85 (0.08) -- 17.29
REGIONAL EQUITY FUND
INSTITUTIONAL CLASS
1997 $ 17.75 $ 0.05 $ 6.18 $ (0.13) $ (0.69) $ 23.16
1996 17.13 0.09 1.70 (0.06) (1.11) 17.75
1995 12.52 0.11 4.90 (0.08) (0.32) 17.13
1994(6) 12.41 0.07 0.11 (0.07) -- 12.52
RETAIL CLASS A
1997 $ 17.71 $ 0.03 $ 6.14 $ (0.07) $ (0.69) $ 23.12
1996 17.12 0.04 1.70 (0.04) (1.11) 17.71
1995 12.52 0.08 4.90 (0.06) (0.32) 17.12
1994 11.96 0.08 0.71 (0.07) (0.16) 12.52
1993(7) 10.00 0.05 1.96 (0.05) -- 11.96
RETAIL CLASS B
1997 $ 17.47 $(0.03) $ 5.97 $ -- $ (0.69) $ 22.72
1996 16.99 (0.04) 1.64 (0.01) (1.11) 17.47
1995 12.50 0.04 4.80 (0.03) (0.32) 16.99
1994(5) 12.19 -- 0.33 (0.02) -- 12.50
</TABLE>
[WIDE TABLE CONTINUED FROM ABOVE]
<TABLE>
<CAPTION>
RATIO OF
RATIO OF NET EXPENSES TO
RATIO OF INVESTMENT AVERAGE AVERAGE
NET ASSETS EXPENSES TO INCOME/LOSS NET ASSETS PORTFOLIO COMMISSION
TOTAL END OF AVERAGE TO AVERAGE (EXCLUDING TURNOVER RATE
RETURN (A) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) RATE (B)
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
40.25% $509,308 0.89% 0.82% 0.90% 82% $ 0.0691
25.61 247,828 0.88 1.35 0.88 143 0.0673
12.84 201,786 0.88 2.30 0.95 72 --
7.31+ 128,806 0.79 1.93 1.03 116 --
39.93% $ 35,207 1.14% 0.58% 1.15% 82% $ 0.0691
25.23 17,987 1.13 1.06 1.13 143 0.0673
12.63 11,609 1.09 2.08 1.20 72 --
18.70 7,333 0.81 1.88 1.23 116 --
18.91 81,899 0.81 2.07 1.31 104 --
15.17 3,586 1.50 1.61 4.18 146 --
28.38+ 3,423 1.50 2.60 5.13 116 --
(13.24) 2,761 1.50 4.09 4.21 113 --
17.41 2,000 1.38 4.07 8.68 102 --
19.56+ 578 1.20 4.02 15.60 51 --
38.81% $ 36,649 1.90% (0.18)% 1.90% 82% $ 0.0691
24.35 12,847 1.88 0.25 1.88 143 0.0673
11.64 4,847 1.88 1.22 1.95 72 --
5.22+ 370 1.68 0.47 2.03 116 --
36.49% $351,007 0.90% 0.35% 0.90% 17% $ 0.0699
11.27 259,138 0.88 0.49 0.90 36 0.0697
41.40 188,583 0.84 0.78 0.95 42 --
1.46+ 96,045 0.80 0.82 1.05 41 --
36.13% $ 37,677 1.15% 0.11% 1.15% 17% $ 0.0699
10.97 25,325 1.13 0.24 1.15 36 0.0697
41.17 14,917 1.05 0.58 1.20 42 --
6.76 8,345 0.82 0.59 1.25 41 --
20.17+ 58,427 0.80 0.59 1.30 28 --
35.18% $ 39,683 1.90% (0.65)% 1.90% 17% $ 0.0699
10.14 27,671 1.88 (0.52) 1.90 36 0.0697
39.98 7,630 1.84 (0.25) 1.95 42 --
2.73+ 185 1.80 (0.41) 2.05 41 --
</TABLE>
* All ratios for the period have been annualized.
+ Returns are for the period indicated and have not been annualized.
(A) Excluding sales charges.
(B) Beginning in 1996, average commission rate paid per share is disclosed for
all applicable security purchases and sales subject to commissions. The
comparability of this information may be affected by the fact that
commission rates per share vary significantly among foreign countries.
(1) Institutional class shares have been offered since August 2, 1994. All
ratios for the period have been annualized.
(2) 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. On April 28, 1994, shareholders of the fund approved a change in the
adviser from Boulevard National Bank to U.S. Bank National Association,
formerly First Bank N.A. All ratios for the period have been annualized.
(3) For the Period ended November 30.
(4) Commenced operations on December 18, 1992. All ratios for the period have
been annualized.
(5) Retail Class B shares have been offered since August 15, 1994. All ratios
for the period have been annualized.
(6) Institutional Class shares have been offered since February 4, 1994. All
ratios for the period have been annualized.
(7) Commenced operations on December 14, 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
FINANCIAL HIGHLIGHTS
For the periods ended September 30, 1997
For a share outstanding throughout the period
<TABLE>
<CAPTION>
REALIZED
AND
NET ASSET NET UNREALIZED DIVIDENDS NET ASSET NET ASSETS
VALUE INVESTMENT GAINS OR FROM NET DISTRIBUTIONS VALUE TOTAL END OF
BEGINNING INCOME (LOSSES) ON INVESTMENT FROM END OF RETURN PERIOD
OF PERIOD (LOSS) INVESTMENTS INCOME CAPITAL GAINS PERIOD (A) (000)
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
EMERGING GROWTH FUND
INSTITUTIONAL CLASS
1997 $ 14.79 $ (0.04) $ 3.55 $ -- $ (0.66) $ 17.64 25.19% $151,607
1996 13.41 (0.03) 1.77 (0.01) (0.35) 14.79 13.39 73,025
1995 10.56 0.03 2.99 (0.02) (0.15) 13.41 29.16 41,716
1994(2) 10.00 0.01 0.56 (0.01) -- 10.56 5.68+ 6,849
RETAIL CLASS A
1997 $ 14.77 $ (0.07) $ 3.51 $ -- $ (0.66) $ 17.55 24.73% $ 5,270
1996 13.40 (0.06) 1.78 -- (0.35) 14.77 13.21 1,867
1995 10.57 0.01 2.99 (0.02) (0.15) 13.40 28.82 386
1994(2) 10.00 0.01 0.57 (0.01) -- 10.57 5.88+ 91
RETAIL CLASS B
1997 $ 14.53 $ (0.16) $ 3.44 $ -- $ (0.66) $ 17.15 24.01% $ 1,263
1996 13.29 (0.12) 1.71 -- (0.35) 14.53 12.32 799
1995 10.55 (0.03) 2.92 -- (0.15) 13.29 27.89 268
1994(3) 9.89 (0.01) 0.67 -- -- 10.55 6.67+ 18
MICRO CAP VALUE FUND
INSTITUTIONAL CLASS
1997(1) $ 10.00 $ -- $ 0.95 $ -- $ -- $ 10.95 9.50% $246,601
RETAIL CLASS A
1997(1) $ 10.00 $ -- $ 0.96 $ -- $ -- $ 10.96 9.60% $ 44
RETAIL CLASS B
1997(1) $ 10.00 $ -- $ 0.95 $ -- $ -- $ 10.95 9.50% $ 50
INTERNATIONAL FUND
INSTITUTIONAL CLASS
1997 $ 10.31 $ 0.03 $ 3.06 $ (0.17)(C) $ -- $ 13.23 30.38% $217,414
1996 10.30 (0.01) 0.22 (0.20)(C) -- 10.31 2.11 135,238
1995 10.22 0.01 0.07 -- -- 10.30 0.78 94,400
1994(2) 10.00 (0.01) 0.23 -- -- 10.22 2.20+ 47,963
RETAIL CLASS A
1997 $ 10.28 $ 0.01 $ 3.04 $ (0.15)(C) $ -- $ 13.18 30.03% $ 8,003
1996 10.28 (0.02) 0.20 (0.18)(C) -- 10.28 1.84 1,964
1995 10.21 -- 0.07 -- -- 10.28 0.69 876
1994(4) 9.98 (0.01) 0.24 -- -- 10.21 2.30+ 464
RETAIL CLASS B
1997 $ 10.14 $ (0.08) $ 3.01 $ (0.10)(C) $ -- $ 12.97 29.13% $ 2,188
1996 10.20 (0.07) 0.17 (0.16)(C) -- 10.14 1.02 1,175
1995 10.21 (0.03) 0.02 -- -- 10.20 (0.10) 306
1994(3) 10.23 (0.01) (0.01) -- -- 10.21 (0.20)+ 22
HEALTH SCIENCES FUND
INSTITUTIONAL CLASS
1997 $ 9.87 $ (0.01) $ 2.33 $ (0.01) $ (0.10) $ 12.08 23.89% $ 41,243
1996(5) 10.00 0.03 (0.15) (0.01) -- 9.87 (1.20)+ 12,485
RETAIL CLASS A
1997 $ 9.86 $ (0.01) $ 2.30 $ -- $ (0.10) $ 12.05 23.60% $ 849
1996(5) 10.00 0.01 (0.14) (0.01) -- 9.86 (1.32)+ 629
RETAIL CLASS B
1997 $ 9.81 $ (0.01) $ 2.20 $ -- $ (0.10) $ 11.90 22.69% $ 516
1996(5) 10.00 (0.02) (0.16) (0.01) -- 9.81 (1.86)+ 281
TECHNOLOGY FUND
INSTITUTIONAL CLASS
1997 $ 19.29 $ (0.06) $ 3.12 $ -- $ (2.06) $ 20.29 17.95% $148,659
1996 18.24 (0.04) 2.98 -- (1.89) 19.29 18.85 64,602
1995 11.19 (0.03) 7.31 -- (0.23) 18.24 66.22 29,272
1994(2) 10.00 (0.01) 1.20 -- -- 11.19 11.90+ 6,491
RETAIL CLASS A
1997 $ 19.25 $ (0.11) $ 3.12 $ -- $ (2.06) $ 20.20 17.71% $ 5,564
1996 18.24 (0.05) 2.95 -- (1.89) 19.25 18.60 4,799
1995 11.19 (0.03) 7.31 -- (0.23) 18.24 66.22 1,464
1994(2) 10.00 (0.01) 1.20 -- -- 11.19 11.90+ 61
RETAIL CLASS B
1997 $ 18.85 $ (0.20) $ 2.99 $ -- $ (2.06) $ 19.58 16.82% $ 8,463
1996 18.02 (0.14) 2.86 -- (1.89) 18.85 17.75 4,881
1995 11.17 (0.04) 7.12 -- (0.23) 18.02 64.52 2,031
1994(3) 9.85 (0.02) 1.34 -- -- 11.17 13.40+ 2
</TABLE>
[WIDE TABLE CONTINUED FROM ABOVE]
<TABLE>
<CAPTION>
RATIO OF RATIO OF
NET EXPENSES TO
RATIO OF INVESTMENT AVERAGE AVERAGE
EXPENSES TO INCOME/LOSS NET ASSETS PORTFOLIO COMMISSION
AVERAGE TO AVERAGE (EXCLUDING TURNOVER RATE
NET ASSETS NET ASSETS WAIVERS) RATE (B)
- -----------------------------------------------------------------
<S> <C> <C> <C> <C>
0.90% (0.28)% 0.91% 54% $ 0.0681
0.89 (0.24) 0.96 39 0.0700
0.84 0.20 1.19 51 --
0.80 0.23 2.59 19 --
1.15% (0.51)% 1.16% 54% $ 0.0681
1.14 (0.52) 1.21 39 0.0700
1.04 0.00 1.44 51 --
0.79 0.23 2.84 19 --
1.90% (1.28)% 1.91% 54% $ 0.0681
1.89 (1.26) 1.96 39 0.0700
1.84 (0.83) 2.19 51 --
1.80 (0.85) 3.59 19 --
0.90% (0.02)% 1.07% 0% $ 0.0676
1.15% (0.25)% 1.32% 0% $ 0.0676
1.90% (1.04)% 2.07% 0% $ 0.0676
1.67% 0.06% 1.67% 96% $ 0.0199
1.72 (0.06) 1.72 100 0.0345
1.74 0.12 1.81 57 --
1.75 (0.19) 2.05 16 --
1.92% (0.09)% 1.92% 96% $ 0.0199
1.97 (0.28) 1.97 100 0.0345
1.93 (0.13) 2.06 57 --
1.75 (0.26) 2.30 16 --
2.67% (0.94)% 2.67% 96% $ 0.0199
2.72 (0.96) 2.72 100 0.0345
2.76 (0.95) 2.81 57 --
2.75 (0.71) 3.05 16 --
0.90% 0.06% 1.04% 54% $ 0.0695
0.90 0.43 1.87 19 0.0700
1.15% (0.20)% 1.29% 54% $ 0.0695
1.15 0.18 2.12 19 0.0700
1.90% (0.94)% 2.04% 54% $ 0.0695
1.90 (0.61) 2.87 19 0.0700
0.90% (0.41)% 0.92% 150% $ 0.0675
0.90 (0.60) 1.01 119 0.0700
0.88 (0.35) 1.30 74 --
0.80 (0.21) 3.12 43 --
1.15% (0.59)% 1.17% 150% $ 0.0675
1.15 (0.85) 1.26 119 0.0700
1.13 (0.61) 1.55 74 --
0.80 (0.21) 3.37 43 --
1.90% (1.41)% 1.92% 150% $ 0.0675
1.90 (1.60) 2.01 119 0.0700
1.88 (1.41) 2.30 74 --
1.80 (1.44) 4.12 43 --
</TABLE>
* All ratios for the period have been annualized.
+ Returns are for the period indicated and have not been annualized.
(A) Excluding sales charges.
(B) Beginning in 1996, average commission rate paid per share is disclosed for
all applicable security purchases and sales subject to commissions. The
comparability of this information may be affected by the fact that
commission rates per share vary significantly among foreign countries.
(C) Represents a distribution in excess of net investment income due to the tax
treatment of foreign currency related transactions.
(1) Commenced operations on August 9,1997. All ratios for the period have been
annualized.
(2) Commenced operations on April 4, 1994. 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) Retail Class A shares have been offered since April 7, 1994. All ratios for
the period have been annualized.
(5) Commenced operations on January 31, 1996. All ratios for the period have
been annualized.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
September 30, 1997
1 ORGANIZATION
The First American Prime Obligations Fund, Government Obligations Fund and
Treasury Obligations Fund are funds offered by First American Funds, Inc.
(FAF). The First American Limited Term Income Fund, Intermediate Term Income
Fund, Intermediate Government Bond Fund, Fixed Income Fund, California
Intermediate Tax Free Fund, Colorado Intermediate Tax Free Fund, Intermediate
Tax Free Fund, Minnesota Insured Intermediate Tax Free Fund, Oregon
Intermediate Tax Free Fund, Asset Allocation Fund, Balanced Fund, Real Estate
Securities Fund, Equity Income Fund, Equity Index Fund, Stock Fund, Diversified
Growth Fund, Special Equity Fund, Regional Equity Fund, Emerging Growth Fund,
Micro Cap Value Fund, International Fund, Health Sciences Fund, and Technology
Fund are funds offered by First American Investment Funds, Inc. (FAIF). FAF and
FAIF (collectively the "Funds") are registered under the Investment Company Act
of 1940, as amended, as open end, management investment companies. The Funds'
articles of incorporation permit the Board of Directors to create additional
funds in the future.
FAF offers Class A, Class B, Class C and Class D shares. Class B shares are
only available pursuant to an exchange for Class B shares of another fund in
the First American family. Class B shares may also be subject to a contingent
deferred sales charge for six years and automatically convert to Class A shares
after eight years. Class C and D shares are offered only to qualifying
institutional investors. Class A and B shares are not offered by the Government
Obligations Fund or Treasury Obligations Fund.
FAIF offers Class A, Class B and Class C shares. Class A shares are sold with a
front-end sales charge. Class B shares may be subject to a contingent deferred
sales charge for six years and automatically convert to Class A shares after
eight years. Class C shares have no sales charge and are offered only to
qualifying institutional investors.
The Funds' prospectuses 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 FAF 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.
Security valuations for FAIF Fund investments are furnished by an independent
pricing service that has been approved by the Board of Directors. 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 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 are valued
by an independent pricing service. The pricing service may employ methodologies
that utilize actual market transactions, broker-dealer supplied valuations, or
other electronic data processing techniques. These techniques generally
consider such factors as yields or prices of bonds of comparable quality, type
of issue, coupon, maturity, ratings and general market conditions. When market
quotations are not readily available, securities are valued at fair value as
determined in good faith by procedures established and approved by the Board of
Directors. Debt obligations with sixty days or less remaining until maturity
may be valued at their amortized cost. Foreign securities are valued at the
closing prices on the principal exchange on which they trade. The prices for
foreign securities are reported in local currency and converted to U.S. dollars
using currency exchange rates. Exchange rates are provided daily by recognized
independent pricing agents as of 12:00 p.m. EST each day. In the event that
there is a material change in the exchange rates between 12:00 p.m. EST and the
time the Funds' net asset value is calculated, the net asset value of the Fund
will be calculated using the revised exchange rates.
SECURITY TRANSACTIONS AND INVESTMENT INCOME -- The Funds record security
transactions on the trade date of the security
<PAGE>
NOTES TO FINANCIAL STATEMENTS
September 30, 1997
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
FAF are declared on a daily basis and are payable on the first business day of
the following month.
Limited Term Income Fund, Intermediate Term Income Fund, Intermediate
Government Bond Fund, Fixed Income Fund, California Intermediate Tax Free Fund,
Colorado Intermediate Tax Free Fund, Intermediate Tax Free Fund, Minnesota
Insured Intermediate Tax Free Fund, Oregon Intermediate Tax Free Fund, Asset
Allocation Fund, Balanced Fund, Equity Income Fund, Equity Index Fund, Stock
Fund, Diversified Growth Fund and Special Equity Fund declare and pay income
dividends monthly. Real Estate Securities Fund, Regional Equity Fund, Emerging
Growth Fund, Micro Cap Value Fund, Health Sciences Fund and Technology Fund
declare and pay income dividends quarterly.
A portion of the quarterly distributions of the Real Estate Securities Fund may
be a return of capital. International Fund declares and pays dividends
annually. Any net realized capital gains on sales of securities for a fund are
distributed to shareholders at least annually.
FEDERAL TAXES -- It is each Fund's intention to continue to qualify as a
regulated investment company and distribute all of its taxable income.
Accordingly, no provision for Federal income taxes is required. For Federal
income tax purposes, required distributions related to realized gains from
security transactions are computed as of October 31st.
The amounts of distributions from net investment income and net realized
capital gains are determined in accordance with federal income tax regulations,
which may differ from those amounts determined under generally accepted
accounting principles. These book/tax differences are either temporary or
permanent in nature. These differences are primarily due to wash sales, foreign
currency gains and losses, the "market-to-market" of certain Passive Foreign
Investment Companies (PFICs) for tax purposes, the character of distributions
made during the year from net investment income or net realized gains, and the
timing of distributions where the fiscal year in which the amounts are
distributed may differ from the year that the income or realized gains (losses)
were recorded by the fund. To the extent these differences are permanent,
adjustments are made to the appropriate equity accounts in the period that the
difference arises. In the Regional Equity Fund, a permanent difference resulted
from a redemption-in-kind in the amount of $6,712,162 in 1997. Associated with
the redemption-in-kind were realized gains of $1,583,477 were recognized for
book purposes but not for tax purposes.
On the Statement of Net Assets the following adjustments were made (000):
ACCUMULATED UNDISTRIBUTED
NET REALIZED NET INVESTMENT
GAIN (LOSS) INCOME PAID-IN-CAPITAL
------------ -------------- ---------------
Limited Term Income Fund $ -- $ 11 $ (11)
Intermediate Government Bond -- 3 (3)
Real Estate Securities Fund -- (153) 153
Equity Income -- 8 (8)
Diversified Growth Fund -- 9 (9)
Regional Equity Fund (1,583) -- 1,583
Emerging Growth Fund (355) 355 --
Micro Cap Value Fund (7) 7 --
International Fund (11,383) 11,383 --
Technology Fund -- 582 (582)
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.
REPURCHASE AGREEMENTS -- The Funds may enter into repurchase agreements with
member banks of the Federal Deposit Insurance Corporation or registered broker
dealers whom the Adviser or Sub-Adviser deems creditworthy
<PAGE>
NOTES TO FINANCIAL STATEMENTS
September 30, 1997
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 generally equals the price paid by a 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 funds 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 a fund 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 the portion of gains and losses on
investments in equity securities that 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 are 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.
OPTIONS TRANSACTIONS -- In order to hedge against market risks certain funds
may write covered call options and purchase put options on stock indices.
Options are valued daily based upon the last sales price on the principal
exchange on which the option is traded, and the fund records the unrealized
gain or loss. A fund will realize a gain or loss upon the expiration or closing
of the options contract.
SECURITIES LENDING -- Each fund may lend up to one-third of the value of its
total assets to broker-dealers, banks or other institutional borrowers of
securities in order to earn additional income. The funds' policy is to maintain
collateral in the form of cash, United States' Government securities or other
high grade debt obligations equal to at least 100% of the value of securities
loaned. The collateral is then marked to market daily until the securities are
returned.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
September 30, 1997
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS -- The preparation
of financial statements, in conformity with generally accepted accounting
principles, requires management to make estimates and assumptions that affect
the reported amount of net assets and liabilities and disclosure of contingent
assets at the date of the financial statements and the reported results of
operations during the reporting period. Actual results could differ from those
estimates.
3 FEES AND EXPENSES
Pursuant to an investment advisory agreement (the Agreement), U.S. Bank
National Association (the Adviser) manages each fund's assets and furnishes
related office facilities, equipment, research and personnel. The Agreement
requires each fund to pay the Adviser a monthly fee based upon average daily
net assets. The fee for each of the FAF funds is equal to an annual rate of
.40% of the average daily net assets. The fee for each of the FAIF funds, other
than the International Fund, is equal to an annual rate of .70% of the average
daily net assets. Marvin & Palmer Associates, Inc., serves as Sub-Adviser to
the International Fund pursuant to a Sub-Advisory Agreement with the Adviser.
The fee for the International Fund is equal to an annual rate of 1.25% of
average daily net assets.
FAIF funds may invest in FAF funds, subject to certain limitations. The terms
of such transactions are identical to those of non-related entities except
that, to avoid duplicative investment advisory fees, the Adviser reimburses to
each FAIF fund an amount equal to the investment advisory fee earned by FAF
related to such investments.
Through a separate contractual agreement, First Trust National Association, an
affiliate of the Adviser, serves as the Funds' custodian. In the Statement of
Operations, expenses paid indirectly represent a reduction of custodian fees
for earnings on cash balances.
SEI Investments Distribution Co. (SIDCO.) and SEI Investments Management
Corporation, (SIMC) serve as distributor and administrator of the Funds,
respectively. Under the distribution plan, each of the funds pay SID CO 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 SIDCO to provide
compensation for sales support and distribution activities. No distribution
fees are paid by Institutional Class C shares. SIMC 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 the First American Family of Funds exceed $8
billion, the annual rate of each FAF fund is reduced to .055% and each FAIF
fund is reduced to .105%. Effective July 1, 1997 the funds in operation were no
longer subject to the $50,000 minimum.
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.
For the period ended September 30, 1997, legal fees and expenses were paid to a
law firm of which the Secretary of the Funds is a partner.
DST Systems, Inc. provides transfer agent services for the Funds.
A Contingent Deferred Sales Charge (CDSC) is imposed on redemptions made in the
Retail Class B. The CDSC varies depending on the number of years from time of
payment for the purchase of Class B shares until the redemption of such shares.
CONTINGENT DEFERRED SALES CHARGE
AS A PERCENTAGE OF DOLLAR
YEAR SINCE PURCHASE AMOUNT SUBJECT TO CHARGE
------------------- --------------------------------
First 5.00%
Second 5.00%
Third 4.00%
Fourth 3.00%
Fifth 2.00%
Sixth 1.00%
Seventh 0.00%
Eighth 0.00%
For the period ended September 30, 1997, sales charges retained by SIDCO for
distributing the Funds' shares were approximately $171,000.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
September 30, 1997
4 INVESTMENT SECURITY TRANSACTIONS
During the period ended September 30, 1997, purchases of securities and
proceeds from sales of securities, other than temporary investments in
short-term securities, were as follows (000):
U.S. GOVERNMENT OTHER INVESTMENT
SECURITIES SECURITIES
------------------------ --------------------
PURCHASES SALES PURCHASES SALES
----------- ---------- --------- --------
Limited Term
Income Fund $ 39,121 $ 49,230 $ 83,591 $ 56,905
Intermediate Term
Income Fund 198,246 236,304 24,160 6,068
Intermediate Government
Bond Fund 45,570 34,998 -- --
Fixed Income Fund 669,933 647,270 58,392 31,057
California Intermediate Tax
Free Fund -- -- 2,824 856
Colorado Intermediate Tax
Free Fund -- -- 10,321 5,329
Intermediate Tax
Free Fund -- -- 138,506 139,936
Minnesota Insured
Intermediate Tax
Free Fund -- -- 55,990 48,843
Oregon Intermediate Tax Free
Fund -- -- 8,799 7,600
Asset Allocation Fund 21,759 22,679 11,797 46,097
Balanced Fund 197,026 185,127 132,330 126,988
Real Estate
Securities Fund -- -- 21,088 4,189
Equity Income Fund -- -- 82,020 73,264
Equity Index Fund -- -- 111,983 36,573
Stock Fund -- -- 595,926 436,611
Diversified Growth Fund -- -- 167,536 183,843
Special Equity Fund -- -- 408,488 337,703
Regional Equity Fund -- -- 61,542 53,270
Emerging Growth Fund -- -- 60,782 59,566
Micro Cap Value Fund -- -- 1,153 20,247
International Fund -- -- 199,604 152,144
Health Sciences Fund -- -- 8,351 16,904
Technology Fund -- -- 172,395 176,190
At September 30, 1997 the total cost of securities for Federal income tax
purposes, was not materially different from amounts reported for financial
reporting purposes. The aggregate gross unrealized appreciation and
depreciation for securities held by the funds at September 30, 1997 is as
follows (000):
AGGREGATE AGGREGATE
GROSS GROSS
APPRECIATION DEPRECIATION NET
------------ ------------ -------
Limited Term Income Fund $ 512 $(135) $ 377
Intermediate Term
Income Fund 1,774 (341) 1,433
Intermediate Government
Bond Fund 3,919 (53) 3,866
Fixed Income Fund 11,402 (762) 10,640
California Intermediate Tax Free
Fund 1,239 (10) 1,229
AGGREGATE AGGREGATE
GROSS GROSS
APPRECIATION DEPRECIATION NET
------------ ------------ -------
Colorado Intermediate
Tax Free Fund 2,699 (3) 2,696
Minnesota Insured Intermediate
Tax Free Fund 10,804 (194) 10,610
Oregon Intermediate Tax Free
Fund 6,199 (128) 6,071
Intermediate Tax Free Fund 13,881 (255) 13,626
Asset Allocation Fund 12,760 (291) 12,469
Balanced Fund 85,039 (1,704) 83,335
Real Estate Securities Fund 9,283 (72) 9,211
Equity Income Fund 125,990 (3,044) 122,946
Equity Index Fund 216,435 (5,040) 211,395
Stock Fund 288,108 (6,627) 281,481
Diversified Growth Fund 291,393 (5,341) 286,052
Special Equity Fund 124,258 (9,938) 114,320
Regional Equity Fund 157,638 (12,302) 145,336
Emerging Growth Fund 51,428 (9,730) 41,698
Micro Cap Value Fund 101,163 (12,731) 88,432
International Fund 43,442 (1,226) 42,216
Health Sciences Fund 12,172 (3,128) 9,044
Technology Fund 46,454 (3,374) 43,080
As of September 30, 1997, the following funds have capital loss carryforwards
(000):
EXPIRATION
AMOUNT DATE
------ ----------
Government Obligations Fund $ 37 2003-2005
Limited Term Income Fund* 4,058 2000-2005
Intermediate Government Bond Fund 223 2002-2006
*Includes carryover acquired in connection with Managed Income merger, the
ability to utilize these losses to offset gains may be limited in future years.
The Government Obligations Fund, Intermediate Term Income and Intermediate Term
Government Bond incurred losses in the amount of $6,000, $159,000, and $161,000
from November 1, 1996 to September 30, 1997. As permitted by tax regulations,
the funds' intend to elect to defer and treat these losses as arising in the
fiscal year ending September 30, 1998.
5 DEFERRED ORGANIZATIONAL COSTS
Organizational costs have been capitalized by the Funds and are being amortized
over sixty months commencing with operations on a straight-line basis.
6 FORWARD FOREIGN CURRENCY CONTRACTS
The International Fund enters into forward foreign currency exchange contracts
as hedges against portfolio positions and in connection with portfolio purchases
and sale of securities denominated in a foreign currency. Such contracts, which
protect the value of the
<PAGE>
NOTES TO FINANCIAL STATEMENTS
September 30, 1997
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. 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 September
30, 1997.
IN NET
CONTRACTS TO EXCHANGE UNREALIZED
SETTLEMENT DELIVER FOR DEPRECIATION
DATES (000) (000) (000)
--------- ------------ -------- ------------
Foreign Currency Sales:
10/17/97 CH 7,830 $ 5,282 $(117)
10/17/97 DK 870 126 (4)
10/17/97 DM 15,120 8,333 (237)
10/17/97 FF 42,230 6,969 (163)
10/17/97 FI 13,640 2,515 (68)
10/17/97 IT 3,215,600 1,831 (32)
10/1/97 to 10/17/97 JY 4,395,036 36,350 (169)
10/17/97 NG 18,630 9,164 (212)
10/17/97 SK 35,370 4,513 (149)
10/17/97 SP 85,560 560 (14)
10/17/97 UK 5,700 9,101 (68)
------- -------
$84,744 $(1,233)
======= =======
Foreign Currency Purchases:
10/01/97 DM 1,852 $ 1,057 $ (8)
10/01/97 IT 190,391 110 --
10/17/97 UK 5,700 9,280 (111)
======= =======
10,447 (119)
CURRENCY LEGEND
---------------
CH Swiss Frank JY Japanese Yen
DK Danish Krone NG Netherlands Guilder
DM German Mark NK Norwegian Kroner
FF French Franc SK Swedish Krona
FI Finnish Mark SP Spanish Peseta
IT Italian Lira 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 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. At
September 30, 1997, open long S&P 500 Index futures contracts were as follows:
MARKET VALUE
NUMBER COVERED BY UNREALIZED
OF CONTRACTS SETTLEMENT GAIN/(LOSS)
CONTRACTS (000) MONTH (000)
--------- ------------ ----------- -----------
28 $13,363 December 97 $ (23)
4 1,909 December 97 (18)
2 955 December 97 (4)
1 477 December 97 (3)
------
$ (48)
======
8 OPTIONS TRANSACTIONS
The Special Equity Fund wrote covered call options and bought put options on
stock indices during the period. These transactions, which were undertaken
principally to hedge against market risk, entail certain risks. These risks
include the risk of imperfect correlation between movements of the index
covered by the option and movement in the price of the fund's securities, and
the risk of limited liquidity in the event the fund seeks to close out an
options position before expiration by entering into an offsetting transaction.
These transactions give the holder the right to receive upon exercise of the
option a defined amount of cash if the closing value of the index upon which
the option is based is greater than, in the case of a call, or less than, in
the case of a put, the exercise price of the option. Written options activity
for Special Equity Fund for the period ended September 30, 1997 is as follows:
CALL OPTIONS (000)
-------------------------
NUMBER OF AMOUNT OF
OPTIONS PREMIUMS
----------- -----------
Options outstanding at
September 30, 1996 0 $ 0
Options written 19,600 57,913
Options closed or expired (19,600) (57,913)
-------- ---------
Options outstanding at
September 30, 1997 0 $ 0
======== =========
The fund realized losses of approximately $25,947,000 on written options in
1997.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
September 30, 1997
9 SECURITIES LENDING TRANSACTIONS
In order to generate additional income, certain funds may lend portfolio
securities representing up to one-third of the value of total assets (which
includes collateral received for securities on loan) to broker dealers, banks,
or other institutional borrowers of securities. As with other extensions of
credit, there may be risks of delay in recovery of the securities or even loss
of rights in the collateral should the borrower of the security fail
financially. The market value of the securities on loan at September 30, 1997,
the collateral purchased with cash received and held at September 30, 1997 with
respect to such loans, and income generated during fiscal 1997 from the program
were as follows (000):
INCOME RECEIVED
MARKET VALUE OF FROM SECURITIES
FUND LOANED SECURITIES LENDING
- ---------------------------- ----------------- ---------------
Government Obligations $140,753 $ 17
Limited Term Income 63,158 8
Intermediate Term Income 145,084 35
Intermediate Government Bond 93,296 29
Fixed Income 327,971 118
Asset Allocation 25,570 15
Balanced 127,385 63
Real Estate Securities 4,145 2
Equity Income 55,978 17
Equity Index 200,270 52
Stock 254,548 80
Diversified Growth 188,727 68
Special Equity* -- 43
Regional Equity 61,305 19
Emerging Growth 26,087 41
Health Sciences 11,513 25
Technology 54,678 58
MARKET VALUE OF
COLLATERAL PURCHASED
WITH CASH RECEIVED
----------------------------------------------
OTHER
MONEY FIXED
REPURCHASE MARKET INCOME
FUND AGREEMENTS INSTRUMENT SECURITIES TOTAL
- ---------------------------- ---------- ---------- ---------- --------
Government Obligations $144,884 $ -- $ -- $144,884
Limited Term Income 57,703 609 6,136 64,448
Intermediate Term Income 132,449 1,398 14,085 147,932
Intermediate Government Bond 95,661 95,661
Fixed Income 300,437 3,171 31,948 335,556
Asset Allocation 26,398 26,398
Balanced 116,611 1,231 12,400 130,242
Real Estate Securities 3,606 38 383 4,027
Equity Income 51,379 542 5,464 57,385
Equity Index 185,712 1,960 19,748 207,420
Stock 242,922 2,564 25,832 271,318
Diversified Growth 174,816 1,845 18,590 195,251
Special Equity* -- -- --
Regional Equity 56,083 592 5,964 62,639
Emerging Growth 25,094 265 2,669 28,028
Health Sciences 10,979 116 1,167 12,262
Technology 51,587 544 5,486 57,617
* Special Equity did not have any securities on loan at September 30, 1997.
10 CONCENTRATION OF CREDIT RISK
The Intermediate Tax Free Fund, Minnesota Insured Intermediate Tax Free Fund
and Colorado Intermediate Tax Free Fund invest in debt instruments of municipal
issuers. Although these funds monitor investment concentration, the issuers'
ability to meet their obligations may be affected by economic developments in a
specific state or region.
The California Intermediate Tax Free Fund, Colorado Intermediate Tax Free Fund,
Minnesota Insured Intermediate Tax Free Fund, Oregon Intermediate Tax Free Fund
and Intermediate Tax Free Fund invest in securities which include revenue
bonds, tax and revenue anticipation notes, and general obligation bonds. At
September 30, 1997, the percentage of portfolio investments by each revenue
source was as follows (unaudited):
<TABLE>
<CAPTION>
MINNESOTA
CALIFORNIA COLORADO INSURED OREGON
INTERMEDIATE INTERMEDIATE INTERMEDIATE INTERMEDIATE INTERMEDIATE
TAX FREE TAX FREE TAX FREE TAX FREE TAX FREE
FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Revenue Bonds:
Education 3% 6% 3% 2% 6%
Health Care Bonds 6 1 14 4 5
Transportation Bonds 5 4 3 4 4
Utility Bonds 3 15 15 15 16
Pollution Control
Bonds 17 4 4 2 1
Public Facility Bonds 21 4 21 4 7
Other 10 12 9 3 18
General Obligations: 35 54 31 66 43
---- ---- ---- ---- ----
100% 100% 100% 100% 100%
==== ==== ==== ==== ====
</TABLE>
The rating of long-term debt as a percentage of total value of investments at
September 30, 1997 is as follows (unaudited):
<TABLE>
<CAPTION>
MINNESOTA
CALIFORNIA COLORADO INSURED OREGON
INTERMEDIATE INTERMEDIATE INTERMEDIATE INTERMEDIATE INTERMEDIATE
TAX FREE TAX FREE TAX FREE TAX FREE TAX FREE
FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Standard & Poor's/
Moody's Ratings:
AAA/Aaa 66.42% 52.79% 80.12% 44.36% 60.26%
AA/Aa 23.20 31.65 11.94 38.60 30.09
A/A 10.38 13.60 5.72 15.56 9.10
BBB/Baa 0.00 0.00 0.00 0.00 0.24
NR 0.00 1.96 2.22 1.48 0.31
------- ------- ------- ------- -------
100.00% 100.00% 100.00% 100.00% 100.00%
======= ======= ======= ======= =======
</TABLE>
Securities rated by only one agency are shown in that category. Securities
rated by both agencies are shown with their highest rating.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
September 30, 1997
11 FUND MERGERS
Fiscal 1996 -- On January 26, 1996 Stock Fund acquired all net assets of
Limited Volatility Stock Fund pursuant to a plan of reorganization approved by
the FAIF shareholders on January 22, 1996. The acquisition was accompanied by a
tax-free exchange of 1,445,879 shares of Limited Volatility Stock Fund
Institutional Class for 917,421 shares of Stock Fund Institutional Class
outstanding as of the close of business on January 26, 1996. Limited Volatility
Stock Fund net assets at that date were combined with those of Stock Fund's.
The aggregate net assets of Stock Fund and Limited Volatility Stock Fund before
the acquisition were $372,522,635 and $17,976,532 (including $37,244 of
accumulated net realized loss on investments, $3,597,192 of net unrealized
appreciation of investments, and 14,416,584 of paid-in-capital for
Institutional Class) respectively, resulting in combined net assets of
$390,499,167 on January 26, 1996.
12 COMMON TRUST FUND CONVERSIONS
On December 6, 1996, certain Common Trust Funds of the Adviser and its
affiliates were converted into FAIF. The funds that were involved in the
conversion are as follows:
COMMON TRUST FUND FAIF FUND
------------------------------ ----------------------------
First Common Treasury Intermediate Government
--Agency/Bond Fund Bond Fund
First Common Taxable Bond Fund Fixed Income Fund
First Common Tax-Free
National Bond Fund Intermediate Tax Free Fund
First Common Tax-Free Minnesota Insured
--Minnesota Bond Fund --Intermediate Tax Free Fund
First Bank Milwaukee Personal
Balanced Fund Asset Allocation Fund
First Common Equity-Yield Fund Equity Income Fund
First Common Equity Fund Diversified Growth Fund
First Common Special
Equity Fund Special Equity Fund
First Common Emerging
Growth Fund Emerging Growth Fund
First Common Equity
--Health Care Fund Health Sciences Fund
First Common Equity
--Technology Fund Technology Fund
The assets, which consisted of securities and related receivables, were
converted on a tax-free basis. The number of Institutional Class shares issued
for each fund and the net assets of each fund (including net unrealized
gain/loss) immediately before the conversion were as follows:
NET
UNREALIZED
COMMON TRUST FUND ASSETS GAIN
- ------------------------------ ------------ ------------
First Common Treasury
--Agency/Bond Fund $ 31,832,839 $ 560,293
First Common Taxable Bond Fund 123,756,766 (189,895)
First Common Tax Free National
Bond Fund 105,222,994 3,002,948
First Common Tax Free
--Minnesota Bond Fund 201,900,453 6,992,690
First Bank Milwaukee Personal
Balanced Fund 66,843,196 12,434,569
First Common Equity Yield Fund 70,993,105 22,378,356
First Common Equity Fund 297,403,308 135,858,681
First Common Special
Equity Fund 80,932,553 10,524,327
First Common Emerging
Growth Fund 46,861,111 8,364,231
First Common Equity
--Health Care Fund 26,178,613 4,711,292
First Common Equity
--Technology Fund 67,008,994 15,928,190
FAIF FUNDS NET ASSETS SHARES ISSUED
- ---------------------------- ------------ -------------
Intermediate
Government Bond Fund $143,381,911 3,422,888
Fixed Income Fund 431,289,324 11,333,040
Intermediate Tax Free Fund 70,908,408 9,833,928
Minnesota Insured
Intermediate Tax Free Fund 105,299,568 20,250,804
Asset Allocation Fund 59,749,411 5,655,093
Equity Income Fund 73,036,893 5,520,460
Diversified Growth Fund 248,697,158 20,826,561
Special Equity Fund 301,197,052 4,323,320
Emerging Growth Fund 74,220,124 3,471,194
Health Sciences Fund 12,082,880 2,752,745
Technology Fund 69,931,430 3,862,189
On February 21, 1997 a second common trust conversion took place. Certain
Common Trust Funds of the Adviser and its affiliates were converted into FAIF.
The funds involved in the conversion are as follows:
COMMON TRUST FUND FAIF FUND
- ----------------------------- ------------------
First Tier Intermediate Intermediate Term
Bond Fund Income Fund
First Tier Bond Fund Fixed Income Fund
First Tier Tax-Exempt Intermediate Tax
Income Fund Free Fund
First Tier Equity Income Fund Equity Income Fund
First Tier Common Stock Fund Stock Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS
September 30, 1997
The assets, which consisted of securities and related receivables, were
converted on a tax-free basis. The number of Institutional Class shares issued
for each fund and the net assets of each fund (including net unrealized
gain/loss) immediately before the conversion were as follows:
NET
UNREALIZED
COMMON TRUST FUND ASSETS GAIN
- ----------------------- ------------ -----------
First Tier Intermediate
Bond Fund $ 74,982,089 $ 105,821
First Tier Bond Fund 93,564,720 263,690
First Tier Tax-Exempt
Income Fund 80,284,045 2,176,951
First Tier Equity
Income Fund 76,626,806 26,423,113
First Tier Common
Stock Fund 177,038,746 77,659,640
FAIF FUND NET ASSETS SHARES ISSUED
- ------------------------- ------------ -------------
Intermediate Term Income
Fund $ 87,973,493 7,543,470
Fixed Income Fund 555,157,713 8,631,431
Intermediate Tax
Free Fund 176,465,910 7,428,033
Equity Income Fund 158,422,856 5,580,976
Stock Fund 768,278,353 7,432,357
On August 8, 1997 a third conversion took place. Certain Common Trust Funds of
the Adviser and its affiliates were converted into FAF or FAIF. The funds
involved in the conversion are as follows:
COMMON TRUST FUND ACQUIRING FUND
- ------------------------------------ --------------------------
US Bancorp Daily Intermediate Trust Prime Obligations Fund
US Bancorp Daily Intermediate Trust Treasury Obligations Fund
Treasury
US Bancorp Short Term Limited Term Income Fund
US Bancorp Intermediate Bond Intermediate Term Income
Fund
US Bancorp California Municipal Bond California Municipal Bond
First Tier California Bond California Municipal Bond
US Bancorp Oregon Municipal Oregon Municipal Fund
US Bancorp National Municipal Intermediate Tax Free Fund
US Bancorp Income Equity Equity Income Fund
US Bancorp Large Company Growth Diversified Growth Fund
US Bancorp Small Companies Value Micro Cap Fund
The assets which consisted of securities, and related receivable were converted
on a tax-free basis. The number of shares issued for each fund and the net
assets of each fund (including net unrealized gain/loss) immediately before the
conversion were as follows:
NET
UNREALIZED
COMMON TRUST FUND ASSETS GAIN/(LOSS)
- -------------------------------- ------------ -------------
US Bancorp Daily
Intermediate Trust $140,497,316 $ --
US Bancorp Daily Intermediate
Trust Treasury 6,884,236 --
US Bancorp Short-Term 71,475,884 (196,640)
US Bancorp Intermediate Bond 166,038,761 (723,590)
US Bancorp California 10,891,465 387,008
Municipal Bond
First Tier California Bond 21,321,364 738,717
US Bancorp Oregon Municipal 180,293,091 5,392,729
US Bancorp National Municipal 184,332,386 6,237,844
US Bancorp Income Equity 117,965,140 34,934,500
US Bancorp Large Company
Growth 63,523,615 21,052,510
US Bancorp Small Companies Value 239,117,775 77,642,865
MUTUAL FUNDS NET ASSETS SHARES ISSUED
- ------------------------------ -------------- -------------
Prime Obligations Fund $3,851,371,412 140,497,316
Treasury Obligations Fund 3,574,473,062 6,884,236
Intermediate Term Income
Fund 158,975,985 16,754,668
Limited Term Income Fund 119,048,345 7,212,501
California Municipal Bond Fund -- 3,221,283
Oregon Municipal Fund -- 18,029,309
Intermediate Tax Free Fund 253,893,940 17,131,263
Equity Income Fund 260,221,997 7,700,074
Diversified Growth Fund 639,938,121 3,627,848
Micro Cap Fund -- 23,911,778
The value and number of shares issued in exchange for each Common Trust Fund's
assets and shares outstanding in the tax-free conversions are included in the
capital share transactions of the Institutional Class in the Statement of
Changes in Net Assets for each respective fund.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
September 30, 1997
13 SUBSEQUENT EVENTS
The Board of Directors and Shareholders of the Qualivest Funds have approved,
the reorganization of the following Qualivest Funds into the First American
Family of Funds on November 21, 1997:
QUALIVEST ACQUIRED FUND FAF OR FAIF ACQUIRING FUND
- -------------------------------- ---------------------------
Money Market Fund Prime Obligations Fund
US Treasury Money Market Fund Treasury Obligations Fund
Tax-Free Money Market Fund Tax Free Obligations Fund
(New FAF Fund)
Small Companies Value Fund Small Cap Value Fund
(New FAIF Fund)
Intermediate Bond Fund Intermediate Term
Income Fund
Diversified Bond Fund Fixed Income Fund
Optimized Stock Fund Equity Index Fund
Large Companies Values Fund Stock Fund
International Opportunities Fund International Index Fund
(New FAIF Fund)
Under the proposed Agreement and Plan of Reorganization, the Qualivest Class A
and Class C shares will be exchanged for Retail Class A shares of FAF or FAIF,
and Qualivest Class Q and Class Y shares will be exchanged for Institutional
shares of FAF or FAIF.
On November 21, 1997, the assets of Asset Allocation Fund will be reorganized
into the Balanced Fund. Under the proposed Agreement and Plan of
Reorganization, the Asset Allocation Class A, B, and C shares will be exchanged
for Class A, B, and C shares of Balanced Fund.
The acquisitions will be accounted for by the method of accounting for tax free
mergers of investment companies (sometimes referred to as the pooling without
restatement method).
<PAGE>
NOTICE TO SHAREHOLDERS
September 30, 1997
THE INFORMATION SET FORTH BELOW IS FOR THE FUND'S FISCAL YEAR AS REQUIRED BY
FEDERAL LAWS. SHAREHOLDERS, HOWEVER, MUST REPORT DISTRIBUTIONS ON A CALENDAR
YEAR BASIS FOR INCOME TAX PURPOSES WHICH MAY INCLUDE DISTRIBUTIONS FOR PORTIONS
OF TWO FISCAL YEARS OF THE FUND. ACCORDINGLY, THE INFORMATION NEEDED BY
SHAREHOLDERS FOR INCOME TAX PURPOSES WILL BE SENT TO THEM IN EARLY 1998. PLEASE
CONSULT YOUR TAX ADVISER FOR PROPER TREATMENT OF THIS INFORMATION.
Dear First American Fund Shareholders:
For the fiscal year ended September 30, 1997, each fund is designated long
term capital gains and exempt income with regard to distributions paid during
the year as follows:
<TABLE>
<CAPTION>
(A)
LONG TERM (B) (C)
CAPITAL GAINS ORDINARY INCOME TOTAL (D) (E)
DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS QUALIFYING TAX EXEMPT
FUND (TAX BASIS) (TAX BASIS) (TAX BASIS) DIVIDENDS (1) INTEREST
- --------------------------------------- ------------- --------------- ------------- ------------- ----------
<S> <C> <C> <C> <C> <C>
Prime Obligations 0% 100% 100% 0% 0%
Government Obligations 0% 100% 100% 0% 0%
Treasury Obligations 0% 100% 100% 0% 0%
Limited Term Income 0% 100% 100% 0% 0%
Intermediate Term Income 5% 95% 100% 0% 0%
Intermediate Government Bond 0% 100% 100% 0% 0%
Fixed Income 0% 100% 100% 0% 0%
California Intermediate Tax Free 1% 99% 100% 0% 98%
Colorado Intermediate Tax Free 8% 92% 100% 0% 98%
Minnesota Insured Intermediate Tax Free 2% 98% 100% 0% 100%
Oregon Intermediate Tax Free 0% 100% 100% 0% 100%
Intermediate Tax Free 2% 98% 100% 0% 97%
Asset Allocation 54% 46% 100% 19% 0%
Balanced 32% 68% 100% 18% 0%
Equity Income 20% 80% 100% 63% 0%
Equity Index 48% 52% 100% 89% 0%
Stock 42% 58% 100% 31% 0%
Diversified Growth 54% 46% 100% 00% 0%
Special Equity 18% 82% 100% 9% 0%
Regional Equity 48% 52% 100% 33% 0%
Emerging Growth 88% 12% 100% 4% 0%
Micro Cap Value 0% 100% 100% 0% 0%
International 0% 100% 100% 0% 0%
Health Sciences 0% 100% 100% 23% 0%
Technology 53% 47% 100% 1% 0%
</TABLE>
* Items (A) and (B) are based on a percentage of the fund's total
distributions.
** Items (D) and (E) are based on a percentage of ordinary income distribution
of the portfolio.
(1) Qualifying dividends represent dividends which qualify for the corporate
dividends received deduction.
(2) Real Estate Securities Fund is not shown due to the fact that the tax year
end is December 31st.
<PAGE>
NOTICE TO SHAREHOLDERS
September 30, 1997
For taxpayers filing on a calendar year basis,
this notice is for informational purposes only.
Dear First American International Fund Shareholder:
The following is important information regarding foreign tax credits.
The First American International Fund has made an election under Section
853 of the Internal Revenue Code to pass through the benefit of foreign tax
credits to its shareholders. The information provided below is pertinent to
taxpayers who meet the following criteria:
1) File a U.S. Federal Income Tax Return on the basis of fiscal year
ended September 30, 1997, and
2) Held shares of the Fund on the dividend record date of December 20,
1996.
The amount per share of income from and foreign taxes paid to each country
is listed in the following schedule:
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS RETAIL CLASS A RETAIL CLASS B
---------------------- ---------------------- ----------------------
GROSS FOREIGN GROSS FOREIGN GROSS FOREIGN
COUNTRY DIVIDEND TAXES PAID DIVIDEND TAXES PAID DIVIDEND TAXES PAID
- -------------- -------- ---------- -------- ---------- -------- ----------
<S> <C> <C> <C> <C> <C> <C>
Argentina 0.0016 0.0000 0.0014 0.0000 0.0009 0.0000
Canada 0.0006 0.0001 0.0005 0.0001 0.0004 0.0001
Chile 0.0033 0.0005 0.0029 0.0005 0.0021 0.0005
Finland 0.0004 0.0001 0.0004 0.0001 0.0003 0.0001
France 0.0115 0.0012 0.0103 0.0012 0.0073 0.0012
Germany 0.0065 0.0005 0.0058 0.0005 0.0041 0.0005
Hong Kong 0.0205 0.0000 0.0181 0.0000 0.0121 0.0000
India 0.0007 0.0001 0.0006 0.0001 0.0004 0.0001
Indonesia 0.0002 0.0000 0.0002 0.0000 0.0001 0.0000
Israel 0.0003 0.0000 0.0002 0.0000 0.0002 0.0000
Italy 0.0033 0.0004 0.0030 0.0004 0.0021 0.0004
Japan 0.0226 0.0027 0.0203 0.0027 0.0145 0.0027
Malaysia 0.0026 0.0006 0.0024 0.0006 0.0018 0.0006
Mexico 0.0015 0.0000 0.0013 0.0000 0.0009 0.0000
Netherlands 0.0161 0.0022 0.0145 0.0022 0.0104 0.0022
New Zealand 0.0005 0.0000 0.0004 0.0000 0.0003 0.0000
Norway 0.0014 0.0002 0.0013 0.0002 0.0009 0.0002
Peru 0.0033 0.0000 0.0029 0.0000 0.0020 0.0000
Philippines 0.0002 0.0001 0.0002 0.0001 0.0002 0.0001
Singapore 0.0024 0.0002 0.0021 0.0002 0.0015 0.0002
South Korea 0.0010 0.0000 0.0009 0.0000 0.0006 0.0000
Spain 0.0012 0.0001 0.0011 0.0001 0.0007 0.0001
Sweden 0.0078 0.0008 0.0070 0.0008 0.0049 0.0008
Switzerland 0.0095 0.0012 0.0085 0.0012 0.0061 0.0012
Thailand 0.0015 0.0001 0.0014 0.0001 0.0009 0.0001
United Kingdom 0.0247 0.0026 0.0221 0.0026 0.0156 0.0026
United States 0.0352 0.0000 0.0312 0.0000 0.0208 0.0000
------ ------ ------ ------ ------ ------
0.1804 0.0137 0.1610 0.0137 0.1121 0.0137
</TABLE>
<PAGE>
NOTICE TO SHAREHOLDERS
September 30, 1997
SHAREHOLDERS VOTING RESULTS
A special meeting of shareholders was called for October 31, 1997, at which the
shareholders of Asset Allocation Fund 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 Asset Allocation Fund
by Balanced Fund. The results of the voting were as follows:
For 110,142
Against 665
Abstained 8,708
There were no other proposals voted on at such meeting.
