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Previous: FIRST UNITED BANCSHARES INC /AR/, 10-Q, 1998-05-14 |
Next: CADE INDUSTRIES INC, 10-Q, 1998-05-14 |
FIRST AMERICAN INVESTMENT FUNDS, INC.
FIRST AMERICAN FUNDS, INC. 1998 SEMI-ANNUAL REPORT
THE POWER OF DISCIPLINED INVESTING
<PAGE>
TABLE OF CONTENTS
September 30, 1997
Message To Shareholders ........................................... Page 1
Economic and Investment Review .................................... Page 2
Statements of Net Assets .......................................... Page 5
Statements of Operations .......................................... Page 99
Statements of Changes ............................................. Page 105
Financial Highlights .............................................. Page 111
Notes to Financial Statement ...................................... Page 118
Notice to Shareholders ............................................ Page 128
<PAGE>
1
MESSAGE TO SHAREHOLDERS
March 31, 1998
Dear Fellow Shareholder:
On behalf of the Board of Directors of First American Funds, I am pleased to
report to you that we have experienced solid investment performance and asset
growth in keeping with the ongoing strength of the economy and overall positive
market conditions. As of March 31, 1998, total assets had surpassed $23.8
billion, up from $16.8 billion just six months ago. This growth has not come at
the expense of quality. First American Funds are on track to continue to produce
competitive investment results for our shareholders.
The Fund's Board of Directors recently approved a recommendation to change
the name of five funds. These name changes will not affect the fund's objectives
and will result in fund names which are more reflective of their investment
style. The name changes will be effective on May 29, 1998, and are reflected in
this report. The chart below shows which funds are affected.
CURRENT NAME NEW NAME
Minnesota Insured Intermediate Minnesota Intermediate
Tax Free Fund Tax Free Fund
Stock Fund Large Cap Value Fund
Special Equity Fund Mid Cap Value Fund
Diversified Growth Fund Large Cap Growth Fund
Emerging Growth Fund Small Cap Growth Fund
In November, 1997, we introduced the Tax Free Obligations, Small Cap Value
and International Index Funds. Information on these three funds is included in
this report.
Later this year we will be introducing six new funds to the First American
Funds family. Two tax free bond funds: Tax Free and Minnesota Tax Free will have
longer maturities than the current tax free fund offerings. An additional bond
fund, Adjustable Rate Mortgage Securities will also be introduced. The new First
American Strategic Income Fund will invest in three distinct bond sectors,
domestic investment grade, international bonds, and high yield corporates. Two
new equity funds, a Mid Cap Growth Fund and an Emerging Markets Fund, will also
be offered. If you have questions on these new funds, please contact your
investment advisor.
On the following pages is an economic and investment review which will
provide you with a complete analysis of the stock and bond markets. The final
section of this report highlights the financial statements for each fund.
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 Funds, Inc.
First American Investment Funds, Inc.
<PAGE>
2
ECONOMIC AND INVESTMENT REVIEW
March 31, 1998
STRONG DOMESTIC ECONOMY
One of the major investment themes developing so far this year is the ongoing
strength of the domestic economy and financial markets. Indeed, far from the
slowdown that was widely expected at the end of 1997, business activity
accelerated during the first quarter, while interest rates continued to decline.
This combination, in turn, has improved the earnings outlook and market
valuations for many companies and helped push the major stock market indices to
new records. Although the pace of growth during the first quarter is not likely
to be sustained throughout the year, if the first three months are any guide,
1998 should be another remarkable year for U.S. investors.
As the U.S. economy enters its eighth consecutive year of expansion, these
are truly extraordinary times. Never before has the domestic economy been on
such a sound footing this late in the business cycle. Few, if any, of the
typical imbalances that bring such cycles to an end are currently
present--inventories are at reasonable levels, inflation remains well contained,
household finances and corporate balance sheets are healthy, and there have been
no "supply shocks" or production bottlenecks to disrupt the flow of goods and
services. Although the economic crisis in Asia is a serious concern, and will
likely slow the pace of growth in the U.S. later this year, there is every
reason to believe the domestic economy will continue to grow and that this will
become the longest peacetime expansion on record.
The consumer sector, which accounts for fully two-thirds of the total
economy, continues to benefit from a combination of factors, including a tight
labor market, low inflation and declining interest rates. Consumers are very
optimistic in their outlook and are spending money on everything from cars and
appliances to mutual funds.
[PLOT POINTS GRAPH]
Line graph depicting the U.S. unemployment rate.
U.S. UNEMPLOYMENT RATE
PERCENT
JAN-90 5.40 JAN-94 6.60
FEB-90 5.30 FEB-94 6.60
MAR-90 5.20 MAR-94 6.50
APR-90 5.40 APR-94 6.40
MAY-90 5.40 MAY-94 6.00
JUN-90 5.20 JUN-94 6.10
JUL-90 5.50 JUL-94 6.10
AUG-90 5.70 AUG-94 6.10
SEP-90 5.90 SEP-94 5.90
OCT-90 5.90 OCT-94 5.80
NOV-90 6.20 NOV-94 5.60
DEC-90 6.30 DEC-94 5.40
JAN-91 6.40 JAN-95 5.60
FEB-91 6.60 FEB-95 5.40
MAR-91 6.80 MAR-95 5.40
APR-91 6.70 APR-95 5.70
MAY-91 6.90 MAY-95 5.60
JUN-91 6.90 JUN-95 5.60
JUL-91 6.80 JUL-95 5.70
AUG-91 6.90 AUG-95 5.70
SEP-91 6.90 SEP-95 5.70
OCT-91 7.00 OCT-95 5.60
NOV-91 7.00 NOV-95 5.60
DEC-91 7.30 DEC-95 5.60
JAN-92 7.30 JAN-96 5.70
FEB-92 7.40 FEB-96 5.50
MAR-92 7.40 MAR-96 5.50
APR-92 7.40 APR-96 5.50
MAY-92 7.60 MAY-96 5.50
JUN-92 7.80 JUN-96 5.30
JUL-92 7.70 JUL-96 5.50
AUG-92 7.60 AUG-96 5.20
SEP-92 7.60 SEP-96 5.20
OCT-92 7.30 OCT-96 5.30
NOV-92 7.40 NOV-96 5.40
DEC-92 7.40 DEC-96 5.30
JAN-93 7.30 JAN-97 5.30
FEB-93 7.10 FEB-97 5.30
MAR-93 7.00 MAR-97 5.20
APR-93 7.10 APR-97 5.00
MAY-93 7.10 MAY-97 4.80
JUN-93 7.00 JUN-97 5.00
JUL-93 6.90 JUL-97 4.90
AUG-93 6.80 AUG-97 4.90
SEP-93 6.70 SEP-97 4.90
OCT-93 6.80 OCT-97 4.80
NOV-93 6.60 NOV-97 4.60
DEC-93 6.50 DEC-97 4.70
JAN-98 4.70
FEB-98 4.60
MAR-98 4.70
Capital investment also continues at a rapid pace, as companies look for new
ways to increase efficiency. Strong growth in labor productivity over recent
years has been an important element in sustaining the economic expansion, by
allowing wages to rise without increasing overall production costs and, thereby,
keeping inflation low. The capital spending boom is likely to slow somewhat in
the months ahead, but will continue to be a source of growth for the overall
economy.
<PAGE>
3
ECONOMIC AND INVESTMENT REVIEW
March 31, 1998
INFLATION
Inflation--or really the lack of it--is another key element in the outlook
for the economy and financial markets. The slowdown in inflation over the past
several quarters has been driven primarily by three factors: strong growth in
labor productivity, reflecting the rapid pace of technological change and
capital investment in the U.S.; intense international competition and the
expansion of global trade, which limits "pricing power" for both domestic and
foreign producers; and steep declines in world prices for most industrial and
agricultural commodities.
[PLOT POINTS GRAPH]
Line graph depicting the Consumer Price Index on
a "year ago percentage change" basis.
CONSUMER PRICE INDEX
YEAR-AGE PERCENT CHANGE
JAN-90 5.19 JAN-94 2.52
FEB-90 5.26 FEB-94 2.44
MAR-90 5.15 MAR-94 2.58
APR-90 4.71 APR-94 2.36
MAY-90 4.36 MAY-94 2.29
JUN-90 4.75 JUN-94 2.56
JUL-90 4.82 JUL-94 2.70
AUG-90 5.70 AUG-94 2.97
SEP-90 6.16 SEP-94 2.96
OCT-90 6.37 OCT-94 2.68
NOV-90 6.27 NOV-94 2.74
DEC-90 6.25 DEC-94 2.60
JAN-91 5.64 JAN-95 2.87
FEB-91 5.31 FEB-95 2.86
MAR-91 4.90 MAR-95 2.79
APR-91 4.81 APR-95 3.05
MAY-91 5.03 MAY-95 3.12
JUN-91 4.69 JUN-95 2.97
JUL-91 4.36 JUL-95 2.83
AUG-91 3.80 AUG-95 2.55
SEP-91 3.39 SEP-95 2.54
OCT-91 2.85 OCT-95 2.74
NOV-91 3.06 NOV-95 2.60
DEC-91 2.98 DEC-95 2.60
JAN-92 2.67 JAN-96 2.72
FEB-92 2.82 FEB-96 2.72
MAR-92 3.19 MAR-96 2.91
APR-92 3.18 APR-96 2.90
MAY-92 3.02 MAY-96 2.89
JUN-92 3.01 JUN-96 2.82
JUL-92 3.15 JUL-96 2.95
AUG-92 3.07 AUG-96 2.88
SEP-92 2.99 SEP-96 3.00
OCT-92 3.28 OCT-96 2.99
NOV-92 3.12 NOV-96 3.18
DEC-92 2.96 DEC-96 3.31
JAN-93 3.18 JAN-97 3.04
FEB-93 3.24 FEB-97 3.03
MAR-93 3.02 MAR-97 2.70
APR-93 3.15 APR-97 2.43
MAY-93 3.22 MAY-97 2.23
JUN-93 3.00 JUN-97 2.30
JUL-93 2.84 JUL-97 2.16
AUG-93 2.84 AUG-97 2.22
SEP-93 2.76 SEP-97 2.22
OCT-93 2.75 OCT-97 2.08
NOV-93 2.67 NOV-97 1.89
DEC-93 2.81 DEC-97 1.70
JAN-98 1.57
FEB-98 1.44
MAR-98 1.38
We believe that the overall trend of "disinflation" in consumer prices should
continue in the months ahead, even though the rate of productivity growth may
slow and the decline in world commodity prices may already be leveling off. The
strong U.S. dollar will keep import prices low, and any slowdown in domestic
demand will further limit pricing power for most companies. In fact, the spread
of deflation from the producer to the consumer level may pose a larger threat to
the overall outlook than the possibility of rising prices. To be sure, if the
U.S. economy slows more dramatically than expected, price cuts will be seen for
a wide variety of goods and services, putting even more pressure on profit
margins for many companies.
THE BOND MARKET
The bond market rally continued during the first weeks of 1998, which brought
some long-term interest rates near their historic lows. As the first quarter
progressed, however, bond yields drifted higher and finished the quarter at
roughly the same level as at the end of last year.
Long-term interest rates should continue to decline if, as expected, the pace
of growth weakens and inflation continues to slow in the months ahead. As long
as the Federal Reserve keeps monetary policy on hold, however, short-term
interest rates will remain near their current levels. Under this scenario, it is
possible that the yield curve could invert temporarily in the weeks or months
ahead, with long-term interest rates falling below the level of short-term
rates. If this scenario does unfold, the Fed would likely ease policy fairly
quickly; thus, sending short-term rates lower and allowing the yield curve to
resume its more normal positive slope.
Capital investment also continues at a rapid pace, as companies look for new
ways to increase efficiency. Strong growth in labor productivity over recent
years has been an important element in sustaining the economic expansion, by
allowing wages to rise without increasing overall production costs and, thereby,
keeping inflation low. The capital spending boom is likely to slow somewhat in
the months ahead, but will continue to be a source of growth for the overall
economy.
THE STOCK MARKET
As the current U.S. economic expansion enters its eighth year, the trend in
domestic stock prices remains positive, although occasionally volatile. All
major domestic indices experienced double-digit gains during the first quarter
of 1998, with larger growth companies leading the way. This advance leaves large
segments of the market, including many blue chips, fully valued or overvalued
and therefore vulnerable to correction. A correction could occur in response to
bad news, the most likely source of which is probably weak corporate earnings.
<PAGE>
4
ECONOMIC AND INVESTMENT REVIEW
March 31, 1998
However, because we are unable to forecast the end of the expansion, and
because the environment for equities remains generally favorable, we expect the
long-term positive trend to remain intact. Outside the U.S., European stocks are
making impressive gains this year amid continuing economic recovery and
corporate restructuring. The Asian Pacific markets are mixed, with some enjoying
a rebound and others still reflecting significant investor concern.
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.
Chairman and
Chief Investment Officer
First Asset Management
<PAGE>
5
STATEMENTS OF NET ASSETS
March 31, 1998
(Unaudited)
PRIME OBLIGATIONS FUND
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
COMMERCIAL PAPER--61.5%
BROKERAGE--4.0%
Goldman Sachs Group L P
5.816%, 04/17/98 $ 50,000 $ 49,873
5.599%, 05/27/98 75,000 74,361
0.000%, 08/14/98 20,000 19,579
Merrill Lynch & Company
5.587%, 04/06/98 50,000 49,961
5.590%, 04/06/98 10,000 9,992
Salomon Smith Barney Holdings
5.580%, 04/21/98 50,000 49,846
----------
253,612
----------
CAPTIVE FINANCE--4.4%
Ford Motor Credit
5.556%, 04/08/98 25,000 24,973
5.450%, 04/09/98 100,000 99,879
General Electric Capital
5.539%, 05/12/98 50,000 49,689
5.539%, 05/13/98 50,000 49,681
Providian Master Trust
5.584%, 05/11/98 50,000 49,693
----------
273,915
----------
COMMERCIAL FUNDING CORPORATIONS--17.4%
Asset Securitization Coop
5.581%, 04/24/98 (B) 15,000 14,947
Distribution Funding
5.594%, 04/13/98 (B) 35,000 34,935
5.560%, 04/14/98 (B) 17,500 17,465
5.574%, 04/15/98 (B) 49,840 49,732
5.577%, 04/17/98 (B) 40,160 40,061
Equipment Intermediation Partnership
5.606%, 04/02/98 (B) 24,960 24,956
Fleet Funding
5.562%, 04/01/98 (B) 14,000 14,000
5.595%, 04/22/98 (B) 50,000 49,838
5.586%, 04/29/98 (B) 47,596 47,391
Pooled Accounts Receivable Capital
5.580%, 04/14/98 (B) 27,840 27,784
5.597%, 04/16/98 (B) 50,000 49,884
5.601%, 04/17/98 (B) 50,284 50,160
5.587%, 04/20/98 (B) 37,474 37,364
5.576%, 04/23/98 (B) 30,000 29,898
5.598%, 04/27/98 (B) 65,507 65,244
Premium Funding E
5.552%, 04/02/98 (B) 28,936 28,932
5.594%, 04/06/98 (B) 31,492 31,468
5.580%, 04/13/98 (B) 41,115 41,039
5.593%, 04/17/98 (B) 45,000 44,889
5.606%, 04/20/98 (B) 20,000 19,941
5.606%, 04/24/98 (B) 35,303 35,177
5.605%, 04/29/98 (B) 20,000 19,913
5.603%, 05/01/98 (B) 35,000 34,838
PRIME OBLIGATIONS FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Receivables Capital
5.531%, 04/14/98 (B) $ 44,000 $ 43,913
5.542%, 04/22/98 (B) 60,000 59,808
5.574%, 04/22/98 (B) 25,000 24,919
5.535%, 04/24/98 (B) 35,353 35,229
5.545%, 04/24/98 (B) 34,000 33,881
5.579%, 04/24/98 (B) 35,286 35,161
5.540%, 05/01/98 (B) 45,000 44,792
----------
1,087,559
----------
COMMERCIAL/INDUSTRIAL--0.7%
McGraw Hill
5.520%, 05/05/98 22,500 22,383
5.822%, 05/27/98 20,000 19,823
----------
42,206
----------
DIVERSIFIED FINANCE--2.0%
General Electric Capital
5.450%, 04/08/98 100,000 99,894
5.543%, 05/22/98 25,000 24,806
----------
124,700
----------
DOMESTIC BANK--13.0%
Cibinong International Finance B V
(LOC: Bank America)
5.616%, 04/08/98 15,500 15,483
5.626%, 04/08/98 19,906 19,884
Hahn Issuing II (LOC: Citibank)
5.598%, 04/29/98 23,321 23,220
International Securitization
(Guarantor: FNB Chicago)
5.524%, 04/09/98 (B) 20,000 19,976
5.539%, 04/16/98 (B) 20,000 19,954
5.757%, 04/16/98 (B) 5,146 5,134
5.760%, 04/20/98 (B) 11,848 11,813
5.570%, 04/22/98 (B) 26,800 26,713
5.539%, 04/23/98 (B) 47,380 47,221
5.539%, 04/23/98 (B) 27,000 26,910
5.573%, 04/27/98 (B) 20,125 20,045
5.584%, 05/07/98 (B) 50,000 49,724
5.592%, 07/09/98 (B) 10,000 9,849
5.598%, 07/16/98 (B) 20,350 20,021
Kzh Crescent (LOC: Chase Manhattan)
5.538%, 04/07/98 (B) 5,044 5,039
5.577%, 04/30/98 (B) 15,545 15,476
5.552%, 05/19/98 (B) 10,123 10,049
Kzh Holding III (LOC: Chase Manhattan)
5.646%, 04/03/98 (B) 11,068 11,065
5.538%, 04/07/98 (B) 8,081 8,074
5.506%, 04/14/98 (B) 24,719 24,671
5.629%, 04/14/98 (B) 8,500 8,483
5.626%, 04/15/98 (B) 18,000 17,961
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
6
PRIME OBLIGATIONS FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Kzh Holding III (LOC: Chase Manhattan) (continued)
5.546%, 04/16/98 (B) $ 16,530 $ 16,492
5.551%, 04/16/98 (B) 10,000 9,977
5.553%, 04/16/98 (B) 25,000 24,943
5.627%, 04/17/98 (B) 20,000 19,950
5.577%, 04/30/98 (B) 28,679 28,552
5.635%, 05/06/98 (B) 35,305 35,113
5.795%, 05/07/98 (B) 14,147 14,067
5.623%, 06/12/98 (B) 25,000 24,723
5.587%, 07/22/98 (B) 16,690 16,407
Kzh Soleil (LOC: Chase Manhattan)
5.762%, 04/08/98 (B) 8,006 7,997
5.506%, 04/14/98 (B) 9,119 9,101
5.552%, 04/16/98 (B) 5,769 5,756
5.555%, 04/20/98 (B) 9,269 9,242
5.577%, 04/30/98 (B) 16,672 16,598
5.552%, 05/19/98 (B) 15,184 15,073
5.623%, 05/26/98 (B) 10,123 10,037
Kzh-Ing-1 (LOC: Chase Manhattan)
5.551%, 04/14/98 (B) 6,803 6,790
5.577%, 05/18/98 (B) 12,645 12,554
Kzh-Ing-2 (LOC: Chase Manhattan)
5.627%, 04/09/98 (B) 15,173 15,154
5.506%, 04/14/98 (B) 10,215 10,195
5.552%, 04/16/98 (B) 6,578 6,563
5.577%, 05/18/98 (B) 15,174 15,065
5.620%, 05/22/98 (B) 14,078 13,967
Minmetals Caps & Securities (LOC: Bancamerica)
5.838%, 04/09/98 30,000 29,962
5.533%, 07/23/98 20,000 19,661
5.577%, 07/23/98 5,000 4,915
----------
815,619
----------
DOMESTIC BRANCH OF FOREIGN BANK--0.8%
Alfa Russia Finance B V (LOC: Societe Generale NY)
0.000%, 07/31/98 10,000 9,809
5.670%, 07/31/98 10,000 9,809
Banco del Istmo S A (LOC: Barclays Bank NY)
5.604%, 04/28/98 10,000 9,958
5.602%, 04/29/98 10,000 9,957
5.607%, 04/30/98 10,000 9,955
----------
49,488
----------
FOREIGN BANKS--8.2%
Banca Serfin S A Institucion de Banca Multiple
Grupo (LOC: Barclays Bank)
5.879%, 06/12/98 15,000 14,829
Banco Nacional de Comercio Exterior S N
(LOC: Societe Generale)
5.536%, 05/06/98 42,500 42,274
Banco Real S A (LOC: Barclays Bank)
5.690%, 04/21/98 40,000 39,877
PRIME OBLIGATIONS FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
China Merchants Cayman
(LOC: Credit Suisse)
5.560%, 04/28/98 $ 15,000 $ 14,938
5.557%, 05/14/98 20,000 19,869
Chinatex Caps (LOC: Credit Suisse)
5.588%, 04/14/98 20,200 20,159
5.580%, 05/28/98 16,200 16,059
Cofco Capital (LOC: Credit Suisse)
5.556%, 04/28/98 30,000 29,877
5.569%, 05/22/98 15,000 14,883
5.598%, 05/28/98 20,122 19,946
Cofco Capital (LOC: Credit Suisse)
5.545%, 04/22/98 10,000 9,968
Cofco Capital (LOC: Credit Suisse)
5.617%, 06/24/98 20,000 19,741
Corporacion Andina de Fomento
(LOC: Barclays Bank)
5.591%, 05/05/98 11,000 10,942
5.593%, 05/07/98 20,000 19,889
Cosco Cayman Limited
(LOC: Credit Suisse)
5.600%, 05/06/98 20,000 19,892
Grupo Financiero Bancomer S A Grand
Cayman Branch (LOC: Bank of Montreal)
5.576%, 04/06/98 25,000 24,981
5.589%, 04/21/98 50,000 49,847
Pemex Capital (LOC: Swiss Bank)
5.717%, 05/14/98 23,607 23,449
5.568%, 05/20/98 35,000 34,737
5.823%, 06/11/98 20,000 19,777
Sinochem American (LOC: Credit Suisse)
5.610%, 04/13/98 5,000 4,991
5.613%, 04/13/98 14,325 14,298
5.553%, 04/20/98 20,000 19,942
5.604%, 05/04/98 9,000 8,954
----------
514,119
----------
FOREIGN FUNDING CORPORATIONS--3.6%
Sigma Finance
5.565%, 04/28/98 (B) 50,000 49,794
5.581%, 04/29/98 (B) 50,000 49,784
5.589%, 05/20/98 (B) 45,500 45,157
5.581%, 05/29/98 (B) 50,000 49,555
5.609%, 07/15/98 (B) 30,000 29,523
----------
223,813
----------
RETAIL FUNDING CORPORATIONS--7.4%
Enterprise Funding
5.551%, 04/01/98 (B) 35,116 35,116
5.529%, 04/06/98 (B) 17,000 16,987
5.460%, 04/07/98 (B) 62,272 62,215
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
7
PRIME OBLIGATIONS FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Enterprise Funding (continued)
5.522%, 04/07/98 (B) $ 30,093 $ 30,066
5.580%, 04/09/98 (B) 11,047 11,033
5.534%, 04/13/98 (B) 16,240 16,210
5.585%, 04/15/98 (B) 10,162 10,140
5.544%, 04/16/98 (B) 25,294 25,236
5.621%, 04/27/98 (B) 20,000 19,920
5.553%, 05/26/98 (B) 13,448 13,336
5.582%, 05/29/98 (B) 20,000 19,822
First Deposit Master Trust
5.544%, 04/03/98 (B) 50,000 49,985
5.548%, 04/08/98 (B) 50,000 49,947
5.533%, 04/20/98 (B) 20,900 20,840
5.607%, 06/08/98 (B) 23,000 22,760
5.609%, 06/11/98 (B) 24,388 24,123
Providian Master Trust
5.605%, 05/08/98 (B) 13,000 12,926
5.581%, 05/12/98 (B) 24,500 24,346
----------
465,008
----------
TOTAL COMMERCIAL PAPER
(Cost $3,850,039) 3,850,039
----------
CORPORATE OBLIGATIONS--24.5%
BROKERAGE--9.4%
Bear Stearns
5.730%, 04/01/98 (A) 75,000 75,000
5.740%, 04/15/98 (A) 100,000 100,000
J.P. Morgan & Company
5.750%, 03/10/99 25,000 25,000
Morgan Stanley
5.758%, 04/15/98 (A) 75,000 75,000
Structured Enhanced Return Trust 1997 A-32
(Guarantor: Merrill Lynch)
6.019%, 04/23/98 (A) (B) 107,000 107,000
Structured Products Asset Return
Certificate Tr Series 98-1 (Credit Support:
CS Financial Products)
5.744%, 05/27/98 (B) 125,000 125,000
WFP Tower B Finance Short Term Steers Trust
(Guarantor: Merrill Lynch)
5.718%, 04/08/98 (A) 84,000 83,989
----------
590,989
----------
CAPTIVE FINANCE--0.5%
Ford Motor Credit
9.250%, 06/15/98 14,415 14,508
5.625%, 12/15/98 14,525 14,530
8.000%, 01/15/99 3,000 3,053
----------
32,091
----------
PRIME OBLIGATIONS FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
DIVERSIFIED FINANCE--0.8%
Associates of North America
7.250%, 05/15/98 $ 3,660 $ 3,666
5.250%, 09/01/98 5,000 4,988
6.500%, 09/09/98 18,650 18,697
Beneficial Corp
8.220%, 06/15/98 11,865 11,920
International Lease Finance
8.350%, 10/01/98 6,469 6,546
5.990%, 01/15/99 6,675 6,695
----------
52,512
----------
DOMESTIC BANKS--1.5%
Credit Suisse First Boston
5.468%, 04/02/98 (B) 25,000 24,994
6.148%, 06/02/98 (B) 8,000 8,004
Dpm Trust Series 1 (Credit Support:
Morgan Guaranty)
5.635%, 07/15/98 (B) 59,000 58,953
----------
91,951
----------
FINANCIAL SERVICES--0.1%
Goldman Sachs
6.100%, 04/15/98 3,000 3,000
----------
FOREIGN FUNDING CORPORATIONS--5.0%
Salts III Cayman Island Ser. 97-10
(Guarantor: Bankers Trust)
6.100%, 06/12/98 (B) 40,000 40,000
Salts III Cayman Island
(Guarantor: Bankers Trust)
6.037%, 06/18/98 (B) 100,000 100,000
5.725%, 07/23/98 (B) 100,000 100,000
Sigma Finance
5.870%, 07/30/98 (B) 21,000 20,990
5.760%, 03/31/99 (B) 50,000 50,000
----------
310,990
----------
INSURANCE--7.2%
Anchor National Life Insurance Investment
5.670%, 04/01/98 (A) (C) 75,000 75,000
Commonwealth Life Insurance
5.873%, 04/01/98 (A) (C) 225,000 225,000
Sun Life Insurance of America
6.000%, 04/01/98 (A) (C) 75,000 75,000
5.730%, 04/01/98 (A) (C) 75,000 75,000
----------
450,000
----------
TOTAL CORPORATE OBLIGATIONS
(Cost $1,531,533) 1,531,533
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
8
PRIME OBLIGATIONS FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT--5.0%
Bankers Trust NY
6.000%, 09/10/98 $ 35,000 $ 34,991
5.700%, 03/05/99 25,000 24,989
Deutsche Bank NY
5.700%, 03/30/99 25,000 24,983
Mercantile Safe Deposit & Trust
5.667%, 04/01/98 (A) 20,000 20,000
Societe Generale NY
6.210%, 04/01/98 (A) 100,000 99,970
6.340%, 04/16/98 20,000 20,000
6.105%, 05/26/98 10,000 10,001
5.580%, 01/22/99 15,000 14,995
5.580%, 02/10/99 40,000 39,991
5.680%, 03/22/99 25,000 24,988
----------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $314,908) 314,908
----------
LOAN PARTICIPATION CERTIFICATES--4.7%
Barclays Bank PLC
5.550%, 04/21/98 50,000 50,000
5.550%, 04/23/98 50,000 50,000
Toronto Dominion Bank
5.540%, 04/15/98 50,000 50,000
5.590%, 04/15/98 20,000 20,000
5.590%, 04/16/98 20,000 20,000
5.540%, 04/17/98 50,000 50,000
5.590%, 05/05/98 25,000 25,000
5.580%, 05/07/98 30,000 30,000
----------
TOTAL LOAN PARTICIPATION CERTIFICATES
(Cost $295,000) 295,000
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS--2.3%
Export-Import Bank
5.748%, 04/15/98 (A) (B) 70,455 70,446
Export-Import Bank/KA Leasing
5.708%, 04/15/98 (A) (B) 36,162 36,163
SLMA
5.448%, 04/07/98 (A) 38,400 38,222
U.S. AID
5.682%, 04/01/98 (A) 1,250 1,248
----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $146,079) 146,079
----------
TIME DEPOSIT--1.4%
Mercantile Bank St. Louis
5.875%, 04/01/98 87,000 87,000
----------
TOTAL TIME DEPOSIT
(Cost $87,000) 87,000
----------
PRIME OBLIGATIONS FUND (CONCLUDED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT--0.7%
Donaldson Lufkin & Jenrette
5.900%, dated 03/31/98, matures
04/01/98, repurchase price $46,694,651
(collateralized by U.S. Treasury Instruments:
total market value $47,620,814) $ 46,687 $ 46,687
----------
TOTAL REPURCHASE AGREEMENT
(Cost $46,687) 46,687
----------
TOTAL INVESTMENTS--100.1%
(Cost $6,271,246) 6,271,246
----------
OTHER ASSETS AND LIABILITIES, NET--(0.1%) (7,842)
----------
NET ASSETS:
Portfolio Shares -- Class Y
($.01 par value -- 20 billion authorized)
based on 4,916,963,736 outstanding shares 4,916,963
Portfolio Shares -- Retail Class A
($.01 par value -- 20 billion authorized)
based on 888,107,172 outstanding shares 888,110
Portfolio Shares -- Retail Class B
($.01 par value -- 20 billion authorized)
based on 1,913,167 outstanding shares 1,913
Portfolio Shares -- Class D
($.01 par value -- 20 billion authorized)
based on 456,252,149 outstanding shares 456,252
Undistributed net investment income 171
Accumulated net realized loss on investments (5)
----------
TOTAL NET ASSETS--100.0% $6,263,404
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--CLASS Y $ 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--CLASS D $ 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 March 31, 1998. 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 the 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>
9
GOVERNMENT OBLIGATIONS FUND
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--50.9%
Export-Import Bank
5.688%, 04/15/98 (A) (B) $ 25,000 $ 25,000
5.708%, 04/15/98 (A) (B) 18,198 18,199
5.748%, 04/15/98 (A) (B) 30,000 29,996
FFCB
5.620%, 04/01/98 33,000 33,000
5.790%, 04/01/98 (A) 20,000 20,016
5.900%, 06/02/98 20,000 20,003
5.750%, 07/01/98 7,000 7,000
5.700%, 11/03/98 15,000 14,997
FHLB
5.500%, 03/26/99 15,000 14,982
6.000%, 04/01/98 (A) 25,000 25,007
5.790%, 04/01/98 (A) 13,000 12,989
5.960%, 06/09/98 3,000 3,001
5.760%, 07/08/98 8,440 8,440
5.755%, 09/30/98 14,750 14,750
5.625%, 10/08/98 5,000 5,003
5.792%, 10/23/98 3,000 3,005
FHLMC
5.450%, 04/03/98 75,000 74,977
5.509%, 04/07/98 31,000 30,972
5.530%, 04/15/98 50,000 49,892
5.505%, 03/12/99 25,000 24,978
FNMA
5.718%, 04/07/98 (A) 50,000 49,991
6.080%, 05/06/98 15,000 15,002
5.630%, 08/14/98 15,000 14,990
5.710%, 09/09/98 10,000 10,003
5.870%, 09/25/98 10,000 10,013
5.330%, 02/12/99 15,000 14,981
4.940%, 02/23/99 10,000 9,943
SLMA
5.378%, 04/07/98 (A) 20,000 20,000
5.378%, 04/07/98 (A) 10,000 10,000
5.400%, 04/07/98 (A) 25,000 24,943
5.448%, 04/07/98 (A) 14,000 13,986
5.850%, 06/10/98 10,000 10,001
6.250%, 06/30/98 10,000 10,016
5.600%, 08/11/98 15,000 14,990
5.790%, 09/16/98 15,000 15,001
5.820%, 09/16/98 14,400 14,404
5.740%, 11/16/98 25,000 25,031
5.720%, 11/20/98 15,000 14,995
5.400%, 02/10/99 25,000 24,980
U.S. AID
5.568%, 04/07/98 (A) 13,000 13,000
5.568%, 04/07/98 (A) 4,000 4,003
5.568%, 04/07/98 (A) 11,000 11,000
5.618%, 04/07/98 (A) 800 800
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $788,280) 788,280
----------
GOVERNMENT OBLIGATIONS FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
OTHER U.S. GOVERNMENT OBLIGATIONS--10.0%
Downey Savings & Loan (LOC: FHLB
of San Francisco)
5.560%, 07/06/98 $ 20,000 $ 19,711
Secondary Market Services (LOC: SLMA
of San Francisco)
5.524%, 04/08/98 50,000 49,947
5.509%, 04/09/98 17,903 17,881
5.503%, 04/14/98 17,522 17,487
5.505%, 04/17/98 25,150 25,089
5.512%, 04/20/98 25,000 24,928
----------
TOTAL OTHER U.S. GOVERNMENT OBLIGATIONS
(Cost $155,043) 155,043
----------
REPURCHASE AGREEMENTS--39.1%
C S First Boston
5.950%, dated 03/31/98, matures
04/01/98, repurchase price $70,011,569
(collateralized by U.S. Treasury Note:
total market value $71,590,631) 70,000 70,000
Donaldson Lufkin & Jenrette 5.950%, dated 03/31/98,
matures 04/01/98, repurchase price $256,567,398
(collateralized by U.S. Treasury Instruments:
total market value $261,656,167) 256,525 256,525
Prudential Securities
5.950%, dated 03/31/98, matures
04/01/98, repurchase price $70,011,569
(collateralized by U.S. Treasury Instruments:
total market value $71,400,573) 70,000 70,000
Salomon Smith Barney
5.940%, dated 03/31/98, matures
04/01/98, repurchase price $70,011,550
(collateralized by U.S. Treasury Notes:
total market value $71,455,632) 70,000 70,000
Societe Generale
5.950%, dated 03/31/98, matures
04/01/98, repurchase price $70,011,569
(collateralized by U.S. Treasury Instruments:
total market value $71,452,000) 70,000 70,000
UBS Securities
5.960%, dated 03/31/98, matures
04/01/98, repurchase price $70,011,589
(collateralized by U.S. Treasury Bills:
total market value $71,401,825) 70,000 70,000
----------
TOTAL REPURCHASE AGREEMENTS
(Cost $606,525) 606,525
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
10
GOVERNMENT OBLIGATIONS FUND (CONCLUDED)
DESCRIPTION Value (000)
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--100.0%
(Cost $1,549,848) $ 1,549,848
-----------
OTHER ASSETS AND LIABILITIES, NET--0.0% (C) (562)
-----------
NET ASSETS:
Portfolio Shares -- Class Y
($.01 par value -- 20 billion authorized)
based on 1,121,875,334 outstanding shares 1,121,876
Portfolio Shares -- Class D
($.01 par value -- 20 billion authorized)
based on 427,807,233 outstanding shares 427,806
Accumulated net realized loss on investments (396)
-----------
TOTAL NET ASSETS--100.0% $ 1,549,286
-----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--CLASS Y $ 1.00
-----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--CLASS D $ 1.00
-----------
(A) Variable Rate Security--the rate reported on the Statement of Net Assets is
the rate in effect as of March 31, 1998. 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 be the Board of Directors.
(C) Other assets and liabilities representing greater than five percent of
total net assets include the following (000):
Cash collateral received for securities on loan $ 375,979
Payable upon return of securities on loan $(375,979)
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--22.4%
U.S. Treasury Bills
5.940%, 04/02/98 $ 50,000 $ 49,992
5.880%, 04/30/98 25,000 24,888
5.590%, 05/28/98 25,000 24,790
5.570%, 08/20/98 25,000 24,483
5.530%, 11/12/98 50,000 48,353
5.520%, 12/10/98 50,000 48,159
U.S. Treasury Notes
7.875%, 04/15/98 50,000 50,037
5.875%, 04/30/98 25,000 24,999
6.125%, 05/15/98 50,000 50,011
8.250%, 07/15/98 50,000 50,347
5.250%, 07/31/98 50,000 49,933
6.125%, 08/31/98 75,000 75,134
4.750%, 09/30/98 50,000 49,803
7.125%, 10/15/98 50,000 50,388
5.875%, 10/31/98 25,000 25,030
5.125%, 11/30/98 50,000 49,918
5.625%, 11/30/98 100,000 99,989
5.750%, 12/31/98 50,000 50,057
6.375%, 01/15/99 75,000 75,541
6.250%, 03/31/99 125,000 125,847
7.000%, 04/15/99 50,000 50,701
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $1,098,400) 1,098,400
----------
REPURCHASE AGREEMENTS--77.8%
Bear Stearns
5.950%, dated 03/31/98, matures 04/01/98,
repurchase price $450,074,375
(collateralized by U.S. Treasury STRIPS:
total market value $459,014,000) 450,000 450,000
CS First Boston 5.950%, dated 03/31/98,
matures 04/01/98, repurchase price
$220,036,361 (collateralized by U.S. Treasury Notes:
total market value $226,593,838) 220,000 220,000
Donaldson Lufkin & Jenrette 5.950%, dated 03/31/98,
matures 04/01/98, repurchase price $237,041,171
(collateralized by U.S. Treasury Instruments:
total market value $241,742,597) 237,002 237,002
First Union Capital
5.900%, dated 03/31/98, matures
04/01/98, repurchase price $220,036,056
(collateralized by U.S. Treasury Instruments:
total market value $224,698,697) 220,000 220,000
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
11
TREASURY OBLIGATIONS FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Goldman Sachs
5.550%, dated 03/27/98, matures
04/01/98, repurchase price $200,154,1667
(collateralized by U.S. Treasury Bonds:
total market value $203,946,000) $ 200,000 $ 200,000
Merrill Lynch
5.625%, dated 03/30/98, matures
04/01/98, repurchase price $200,062,500
(collateralized by U.S. Treasury Instruments:
total market value $204,229,000) 200,000 200,000
Nomura Securities
5.930%, dated 03/31/98, matures
04/01/98, repurchase price $400,065,889
(collateralized by U.S. Treasury Instruments:
total market value $408,000,593) 400,000 400,000
Prudential Securities
5.950%, dated 03/31/98, matures
04/01/98, repurchase price $220,036,361
(collateralized by U.S. Treasury Instruments:
total market value $224,400,016) 220,000 220,000
Salomon Smith Barney
5.940%, dated 03/31/98, matures
04/01/98, repurchase price $930,153,450
(collateralized by U.S. Treasury Instruments:
total market value $949,053,133) 930,000 930,000
Societe Generale
5.850%, dated 03/31/98, matures
04/01/98, repurchase price $130,021,125
(collateralized by U.S. Treasury Instruments:
total market value $132,604,000) 130,000 130,000
Societe Generale
5.950, dated 03/31/98, matures 04/01/98,
repurchase price $400,066,111
(collateralized by U.S. Treasury Instruments:
total market value $408,052,000) 400,000 400,000
UBS Securities
5.960%, dated 03/31/98, matures
04/01/98, repurchase price $220,036,422
(collateralized by U.S. Treasury Instruments:
total market value $224,401,574) 220,000 220,000
----------
TOTAL REPURCHASE AGREEMENTS
(Cost $3,827,002) 3,827,002
----------
TOTAL INVESTMENTS--100.2%
(Cost $4,925,402) 4,925,402
----------
OTHER ASSETS AND LIABILITIES, NET--(0.2%) (7,770)
----------
TREASURY OBLIGATIONS FUND (CONCLUDED)
DESCRIPTION Value (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares -- Class Y
($.01 par value -- 20 billion authorized)
based on 1,465,154,707 outstanding shares $ 1,465,155
Portfolio Shares -- Retail Class A
($.01 par value -- 20 billion authorized)
based on 80,345,392 outstanding shares 80,346
Portfolio Shares -- Class D
($.01 par value -- 20 billion authorized)
based on 3,372,096,712 outstanding shares 3,372,096
Undistributed net investment income 7
Accumulated net realized gain on investments 28
-----------
TOTAL NET ASSETS--100.0% $ 4,917,632
-----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--CLASS Y $ 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--CLASS D $ 1.00
-----------
STRIPS--Separately Trading of Registered Interest and Principal of Securities
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
12
TAX FREE OBLIGATIONS FUND
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS--100.4%
ALABAMA--5.9%
Birmingham, Baptist Medical Center, Living
County Project, Series A (RB)
(LOC: Banco Santander)
3.800%, 04/07/98 (A) $ 9,100 $ 9,100
Jefferson County, Sewer Revenue, Series 7
(RB) (FGIC)
3.800%, 04/07/98 (A) 3,000 3,000
----------
12,100
----------
ARIZONA--1.3%
Maricopa County, School District #4, Mesa
University, Capital Appreciation (GO) (FGIC)
0.000%, 07/01/98 2,675 2,650
----------
ARKANSAS--0.5%
Jonesboro, Sales & Use Tax (RB) (FSA)
3.800%, 05/15/98 1,000 1,000
----------
CALIFORNIA--1.5%
California State, School Cash Reserve
Program,Tax Anticipation Notes
(RB) (AMBAC)
4.750%, 07/02/98 3,000 3,009
----------
COLORADO--1.9%
Colorado Springs, Utilities Revenue,
Series 19 (RB)
3.800%, 04/07/98 (A) 2,600 2,600
Platte River Authority (RB) (MBIA)
3.650%, 06/01/98 1,200 1,199
----------
3,799
----------
DISTRICT OF COLUMBIA--0.5%
District of Columbia, Series B,
Pre-refunded @ 101.5 (GO) (MBIA)
6.750%, 06/01/98 (B) 1,000 1,020
----------
FLORIDA--3.2%
Florida State, Housing Finance Agency,
Multifamily Revenue (LOC: Nationsbank) (RB)
3.750%, 04/07/98 (A) (B) 1,500 1,500
Sunshine State (TECP) (AMBAC)
3.450%, 05/13/98 4,000 4,000
West Orange (LOC: Rabobank) (TECP)
3.400%, 04/09/98 1,100 1,100
----------
6,600
----------
TAX FREE OBLIGATIONS FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
GEORGIA--1.5%
Georgia State, Series D,
Pre-refunded @ 102 (GO)
7.450%, 06/01/98 (B) $ 1,100 $ 1,128
Whitfield County, Residential Care Facility
Authority, Royal Oaks Senior Living
Community Project (LOC: First Union
National Bank) (RB)
3.700%, 04/07/98 (A) 2,000 2,000
----------
3,128
----------
IDAHO--0.5%
Idaho State, Tax Anticipation Notes (GO)
4.625%, 06/30/98 1,000 1,002
----------
ILLINOIS--2.5%
Illinois State, Development Finance Authority
Revenue (LOC: Harris Trust) (RB)
3.750%, 04/07/98 (A) 2,000 2,000
Illinois State, Metropolitan Pier & Exposition
Authority (RB) (AMBAC)
3.800%, 04/07/98 (A) 3,000 3,000
----------
5,000
----------
KANSAS--3.2%
Burlington (LOC: Toronto
Dominion Bank) (TECP)
3.500%, 05/08/98 2,000 2,000
Shawnee County, Series 1,
Callable 05/01/98 @ 100 (GO)
4.000%, 02/01/99 2,628 2,629
Shawnee, Industrial Development Revenue,
Shawnee Village Association (LOC: Texas
Commerce Bank N.A.) (RB)
3.450%, 04/07/98 (A) 1,900 1,900
----------
6,529
----------
MARYLAND--2.2%
Baltimore, Port Facilities (LOC:
Wachovia) (RB)
3.250%, 04/07/98 (A) 1,000 1,000
Fredrick County, Retirement Community
Revenue, Buckinghams Choice, Series E
(LOC: LaSalle National Bank) (RB)
3.700%, 04/07/98 (A) 1,500 1,500
Maryland State, Washington Suburban
Sanitation District, Water Supply (RB)
5.750%, 06/01/98 1,900 1,906
----------
4,406
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
13
TAX FREE OBLIGATIONS FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
MICHIGAN--8.8%
Hannahville, Indian Community Finance &
Building Authority, Building Program,
Series A (LOC: First of America) (RB)
3.750%, 04/07/98 (A) $ 4,000 $ 4,000
Michigan State, Hospital Financial Authority
(LOC: First of America) (RB)
3.750%, 04/07/98 (A) 4,900 4,900
Michigan State, Hospital Financial Authority,
Series A (LOC: First of America) (RB)
3.750%, 04/07/98 (A) 1,800 1,800
Regents of University of Michigan (TECP)
3.200%, 04/09/98 4,300 4,300
3.450%, 04/09/98 3,000 3,000
----------
18,000
----------
MINNESOTA--2.4%
Eden Prairie, Multifamily Housing
(LOC: Barclays Bank) (RB)
3.750%, 04/07/98 (A) 1,900 1,900
Western Minnesota, Municipal Power
Agency (RB)
4.250%, 01/01/99 3,000 3,000
----------
4,900
----------
MISSISSIPPI--1.5%
Mississippi State, Mississippi College Project
(LOC: Nationsbank) (RB)
3.700%, 04/07/98 (A) 3,000 3,000
----------
MISSOURI--5.7%
Missouri State Health & Educational Revenue,
Drury College, Series B (RB)
4.250%, 04/07/99 3,120 3,137
Missouri State (LOC: UBS) (TECP)
3.250%, 04/03/98 3,000 3,000
St. Charles County, Sun River Village
Apartments (LOC: Bank of America) (RB)
3.750%, 04/07/98 (A) 5,400 5,400
----------
11,537
----------
NEVADA--2.0%
Nevada (GO)
3.800%, 04/07/98 (A) 4,000 4,000
----------
NEW HAMPSHIRE--2.2%
New Hampshire State Higher Educational &
Health Authority, Alice Peck Day Lifecare
Project (LOC: Corestates) (RB)
3.650%, 04/07/98 (A) 4,500 4,500
----------
TAX FREE OBLIGATIONS FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
NORTH CAROLINA--1.7%
New Hanover County, Gang Nail Systems
Project (LOC: Harris Trust) (RB)
3.750%, 04/07/98 (A) $ 3,500 $ 3,500
----------
OKLAHOMA--5.0%
Garfield County, Pollution Control Revenue,
Oklahoma Gas & Electric (RB)
3.700%, 04/07/98 (A) 2,300 2,300
Tulsa, Industrial Authority Revenue (RB) (MBIA)
3.800%, 04/07/98 (A) 7,970 7,970
----------
10,270
----------
PENNSYLVANIA--1.7%
Delaware County, Catholic Health East,
Series A (RB)
4.500%, 11/15/98 2,275 2,285
Pennsylvania State (COP)
4.800%, 06/01/98 1,285 1,287
----------
3,572
----------
SOUTH CAROLINA--4.3%
South Carolina, Public Service Authority
Revenue (RB) (FGIC)
3.800%, 04/07/98 (A) 2,000 2,000
York County (TECP) (DP)
3.150%, 04/07/98 2,000 2,000
3.500%, 04/07/98 2,000 2,000
3.550%, 04/07/98 2,700 2,700
----------
8,700
----------
SOUTH DAKOTA--3.8%
Yankton, Industrial Development Revenue,
Alumax Project (LOC: Bank of America) (RB)
3.750%, 04/07/98 (A) 7,700 7,700
----------
TENNESSEE--7.9%
Hamilton County (GO)
5.000%, 07/01/98 1,000 1,003
Hamilton County, Industrial Development
Board, Tennessee Aquarium
(LOC: Nationsbank) (RB)
3.700%, 04/07/98 (A) 4,000 4,000
Montgomery County, Public Building
Authority Pooled Financing Revenue,
Montgomery County Loan
(LOC: Nationsbank) (RB)
3.700%, 04/07/98 (A) 3,085 3,085
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
14
TAX FREE OBLIGATIONS FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Nashville & Davidson Counties, Metro
Government Industrial Development
(LOC: Barclays Bank) (RB)
3.750%, 04/07/98 (A) $ 7,035 $ 7,035
Nashville & Davidson Counties, Metro
Government Ymca Projects (LOC:
Nationsbank of Georgia) (RB)
3.700%, 04/07/98 (A) 1,000 1,000
----------
16,123
----------
TEXAS--14.8%
Austin, LOC: Morgan Guaranty (TECP)
3.500%, 05/13/98 4,000 4,000
Harris County, Hospital (RB) (FSA)
3.800%, 04/07/98 (A) 2,775 2,775
Houston, Water & Sewer Revenue
(RB) (FGIC)
3.800%, 04/07/98 (A) 7,000 7,000
Hunt County, Industrial Development
Authority, Trico Industries Project
(LOC: ABN Amro) (RB)
3.500%, 04/07/98 (A) 1,030 1,030
San Antonio, Electric & Gas (RB) (MBIA)
3.800%, 04/07/98 (A) 7,455 7,455
Texas A&M University (TECP)
3.150%, 04/03/98 5,000 5,000
Texas State (TECP)
3.400%, 06/08/98 3,000 3,000
----------
30,260
----------
UTAH--0.9%
Salt Lake County, Housing Authority
Multifamily Revenue, Santa Fe Apartments
Project (LOC: Dresdner) (RB)
3.750%, 04/07/98 (A) 1,900 1,900
----------
VERMONT--0.8%
Vermont State, Student Loan Revenue
(LOC: Natwest) (RB)
3.400%, 04/07/98 (A) 1,565 1,565
----------
TAX FREE OBLIGATIONS FUND (CONTINUED)
DESCRIPTION Par (000)/Shares Value (000)
- --------------------------------------------------------------------------------
WASHINGTON--6.2%
Port Seattle, Alaska Airlines Project,
(RB) (LOC: Bank of New York)
3.500%, 04/07/98 (A) $ 5,000 $ 5,000
Washington State, Public Power Supply
Systems, Nuclear Project #3 (RB)
3.800%, 04/07/98 (A) 6,590 6,590
Washington State, Series A (GO)
6.500%, 07/01/98 1,000 1,007
----------
12,597
----------
WISCONSIN--6.0%
Milwaukee, Series A (RAN)
5.000%, 02/25/99 5,000 5,064
Milwaukee, Series J (GO)
4.000%, 12/01/98 1,825 1,826
Waupon, School District (GO)
4.350%, 12/01/98 3,750 3,758
Wisconsin State (GO)
4.700%, 11/01/98 750 754
Wisconsin State,
Pre-refunded @ 100 (GO)
7.100%, 05/01/98 (B) 745 747
----------
12,149
----------
TOTAL MUNICIPAL BONDS
(Cost $204,516) 204,516
----------
MONEY MARKET FUNDS--4.4%
Federated Tax Free Money Market 2,985,590 2,986
SEI Institutional Tax Free Portfolio 6,000,000 6,000
----------
TOTAL MONEY MARKET FUNDS
(Cost $8,986) 8,986
----------
TOTAL INVESTMENTS--104.8%
(Cost $213,502) 213,502
----------
OTHER ASSETS AND LIABILITIES, NET--(4.8%) (9,703)
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
15
TAX FREE OBLIGATIONS FUND (CONCLUDED)
DESCRIPTION Value (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares -- Class Y
($.0001 par value -- 2 billion authorized)
based on 1,57,783,451 outstanding shares $ 157,782
Portfolio Shares -- Retail Class A
($.0001 par value -- 2 billion authorized)
based on 41,762,841 outstanding shares 41,761
Portfolio Shares -- Class D
($.01 par value -- 20 billion authorized)
based on 4,256,198 outstanding shares 4,256
Undistributed net investment income 1
Accumulated net realized loss on investments (1)
---------
TOTAL NET ASSETS--100.0% $ 203,799
---------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--CLASS Y $ 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--CLASS D $ 1.00
---------
(A) Variable Rate Security--the rate reported on the Statement of Net Assets is
the rate in effect as of March 31, 1998. The date shown is the 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
COP--Certificate of Participation
DP--Duke Power
FGIC--Financial Guaranty Insurance Corporation
FSA--Financial Security Assurance
GO--General Obligation
LOC--Letter of Credit
MBIA--Municipal Bond Insurance Association
RAN--Revenue Anticipation Note
RB--Revenue Bond
TECP--Tax Exempt Commercial Paper
LIMITED TERM INCOME FUND
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
ASSET-BACKED SECURITIES--45.0%
AUTO COMPANY SUBSIDIARIES - AUTO--2.8%
General Motors Acceptance 97-A
6.500%, 04/15/02 $ 3,918 $ 3,946
Premier Auto Trust 1993-4 B
4.950%, 02/02/99 232 232
Premier Auto Trust 1994-3 B
6.800%, 12/02/99 748 754
Premier Auto Trust 1994-4 A5
6.650%, 11/02/98 544 545
----------
5,477
----------
BANKS - AUTO--2.8%
NAFCO Auto Trust
7.000%, 12/31/01 1,380 1,385
NAFCO Auto Trust 1996-1 A
6.330%, 12/21/02 332 334
New South Auto Trust 1994-B A
8.475%, 01/15/01 571 579
Southern Pacific Thrift & Loan
Association 1996-C1 A1
5.975%, 04/25/98 (B) 934 935
Western Financial Grantor Trust 1994-3 B
6.650%, 12/01/99 354 356
Western Financial Grantor Trust 1994-4 A1
7.100%, 01/01/00 1,847 1,856
----------
5,445
----------
BANKS - BOATS & RV'S--1.0%
CFC Grantor Trust TR14
7.150%, 11/15/06 (B) 1,976 1,979
----------
BANKS - CREDIT CARD RECEIVABLES--10.2%
Fingerhut Master Trust, Series 1996-1, Cl A
6.450%, 02/20/02 3,730 3,779
First USA Credit Card Master Trust 1996-1
6.271%, 04/15/98 (A) (B) 1,500 1,502
Household Credit Card Master Trust 1995-1
6.038%, 04/15/98 (A) (B) 6,375 6,391
MBNA Master Credit Card Trust 1994-B
5.663%, 01/15/02 (A) 8,250 8,240
----------
19,912
----------
CONSUMER FINANCE - AUTO--9.4%
Auto Bond Receivables Trust 1993-1
6.125%, 11/15/98 (A) 244 242
Budget Fleet Finance 1994-A
6.148%, 04/25/98 (A) (B) 6,400 6,400
Fasco Auto Trust Series 1996-1
6.650%, 11/15/01 3,688 3,716
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
16
LIMITED TERM INCOME FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
MMCA Automobile Trust 1997-1 A3
6.080%, 05/15/01 4,480 4,491
The Money Store Auto Grantor
Trust 1997-2, Cl A
6.170%, 03/20/01 3,375 3,383
----------
18,232
----------
CONSUMER FINANCE - FIRST MORTGAGE RELATED--0.9%
Prudential Home Mortgage
Securities 1992-36 A7
6.500%, 11/25/99 1,323 1,321
Saxon Mortgage Securities 1994-4A 1A2
5.250%, 04/25/24 473 471
----------
1,792
----------
CONSUMER FINANCE - SECOND MORTGAGE RELATED--6.0%
Green Tree Home Improvement
Loan Trust, 1996-F
6.900%, 01/15/28 4,000 4,087
HFC Home Equity Loan Trust 1992-2 B
6.850%, 11/20/12 630 633
Household Finance 1993-1 A3
4.750%, 05/20/08 53 54
Household Finance Home Equity 1993-2 A3
4.650%, 12/20/08 1,643 1,637
Lehman Home Equity Loan
Trust Series 1995-7 A2
6.490%, 03/25/12 2,118 2,140
Wilshire Mortgage Loan Trust
6.750%, 06/25/15 3,000 3,024
----------
11,575
----------
EQUIPMENT LEASES--5.7%
Amerisource Receivables Master
Trust 1995-1, Cl A
6.038%, 03/15/00 (A) (B) 1,500 1,500
Icon Receivables 1997-A1
6.435%, 06/01/05 (B) 6,721 6,755
JLC Lease Receivables Trust 1994-1
5.895%, 04/22/98 (A) 2,940 2,940
----------
11,195
----------
MORTGAGE BANKERS & LOANS - SECOND MORTGAGE RELATED--4.8%
Amresco Residential Securities 1996-5 A2
6.275%, 04/25/18 5,000 5,036
BCI Home Equity Loan 1994-1
6.413%, 04/29/98 (A) 1,905 1,922
LIMITED TERM INCOME FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
The Money Store Home Equity Loan
Trust 1992-D1 A1
6.500%, 01/15/04 $ 393 $ 397
The Money Store Home Equity Loan
Trust 1993-B A1
5.400%, 08/15/05 900 900
UCFC Home Equity Loan 1995-B1, Cl A2
6.600%, 07/10/09 1,151 1,154
----------
9,409
----------
VACATION HOME MORTGAGES--1.4%
Patten 1995-1A
7.250%, 08/01/98 (A) (B) 1,607 1,608
RCI Vacation Ownership Mortgage
Trust 1991-B
7.500%, 08/25/98 (B) 1,089 1,090
----------
2,698
----------
TOTAL ASSET-BACKED SECURITIES
(Cost $87,394) 87,714
----------
U.S. TREASURY OBLIGATIONS--23.7%
U.S. Treasury Notes
6.125%, 05/15/98 2,750 2,752
5.875%, 08/15/98 12,300 12,318
7.125%, 10/15/98 5,000 5,044
5.625%, 02/28/01 26,200 26,174
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $46,456) 46,288
----------
CORPORATE OBLIGATIONS--21.5%
Associates of North America
5.850%, 01/15/01 7,500 7,462
Bear Stearns, Series B
6.238%, 10/03/00 7,500 7,519
Comdisco
5.760%, 01/19/99 7,000 6,977
Commercial Credit
5.550%, 02/15/01 4,500 4,433
Ford Motor Credit
7.450%, 04/13/00 7,500 7,706
Salomon Smith Barney
5.980%, 03/26/01 7,750 7,711
----------
TOTAL CORPORATE OBLIGATIONS
(Cost $41,993) 41,808
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
17
LIMITED TERM INCOME FUND (CONTINUED)
DESCRIPTION Par (000)/Shares Value (000)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED OBLIGATIONS--4.6%
FHLMC 1229-G
6.800%, 07/15/05 $ 51 $ 52
FHLMC 1339-PG
7.000%, 08/15/17 1,829 1,829
FNMA 1992-152 J
7.000%, 05/25/06 6,061 6,087
GNMA 1995-7 D
7.500%, 04/16/10 1,008 1,008
----------
TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-BACKED OBLIGATIONS
(Cost $8,978) 8,976
----------
OTHER MORTGAGE-BACKED OBLIGATIONS--2.9%
Merrill Lynch Mortgage Investors 1993-C A4
6.688%, 04/15/98 (A) 4,850 4,900
Southern Pacific Secured Assets 1996-2 A2
6.720%, 10/25/16 745 754
----------
TOTAL OTHER MORTGAGE-BACKED OBLIGATIONS
(Cost $5,602) 5,654
----------
RELATED PARTY MONEY MARKET FUND--1.7%
First American Prime
Obligations Fund (C) 3,316,263 3,316
----------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $3,316) 3,316
----------
TOTAL INVESTMENTS--99.4%
(Cost $193,739) 193,756
----------
OTHER ASSETS AND LIABILITIES, NET--0.6% 1,144
----------
LIMITED TERM INCOME FUND (CONCLUDED)
DESCRIPTION Value (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares -- Class Y
($.0001 par value -- 2 billion authorized)
based on 19,119,305 outstanding shares $ 193,090
Portfolio Shares -- Retail Class A
($.0001 par value -- 2 billion authorized)
based on 496,270 outstanding shares 5,547
Undistributed net investment income 80
Accumulated net realized loss on investments (3,834)
Net unrealized appreciation of investments 17
---------
TOTAL NET ASSETS--100.0% $ 194,900
---------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--CLASS Y $ 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 March 31, 1998. 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 serve as adviser for this Fund. See also the notes to the financial
statements.
(D) Other assets and liabilities representing greater than five percent of
total net assets include the following (000):
Cash collateral received for securities on loan $ 47,489
Payable upon return of securities on loan $(47,489)
Cl--Class
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>
18
INTERMEDIATE TERM INCOME FUND
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS--58.0%
U.S. Treasury Notes
5.625%, 11/30/99 $ 29,545 $ 29,549
6.500%, 05/31/01 37,065 37,952
6.250%, 10/31/01 65,370 66,538
6.250%, 02/15/03 25,150 25,745
6.500%, 08/15/05 30,625 31,986
6.875%, 05/15/06 62,550 67,020
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $259,231) 258,790
----------
CORPORATE OBLIGATIONS--21.3%
Anz Banking Group
7.550%, 09/15/06 1,000 1,076
Bear Stearns, Series B
6.238%, 10/03/00 13,000 13,033
Chrysler Financial
5.850%, 05/15/00 19,035 18,964
Cigna
7.400%, 01/15/03 3,075 3,198
Cit Group Holdings
6.200%, 10/20/00 12,725 12,757
Comdisco
5.750%, 01/19/99 5,300 5,284
5.780%, 01/19/99 1,150 1,147
Ford Motor Credit
6.250%, 11/08/00 13,200 13,233
Lehman Brothers Holdings
6.000%, 03/23/00 6,050 6,035
Metropolitan Life Insurance
6.300%, 11/01/03 (B) 15,145 15,069
Nippon Telegraph & Telephone
9.500%, 07/27/98 1,000 1,011
Occidental Petroleum
6.410%, 11/30/00 1,000 1,008
Private Export Funding
5.750%, 04/30/98 1,000 1,000
Safeco
7.875%, 04/01/05 1,000 1,076
Union Oil of California
8.750%, 08/15/01 1,000 1,078
----------
TOTAL CORPORATE OBLIGATIONS
(Cost $94,673) 94,969
----------
INTERMEDIATE TERM INCOME FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
OTHER MORTGAGE-BACKED OBLIGATIONS--11.4%
American Southwest Financial Securities
7.400%, 11/17/04 $ 8,595 $ 8,934
Asset Securitization 1996-MD6
6.880%, 11/13/26 18,400 18,956
Drexel Burnham Lambert Trust S-2
9.000%, 08/01/18 48 48
Equicredit Home Equity Loan Trust
7.350%, 06/15/14 1,500 1,525
Merrill Lynch Mortgage Investors 1995-C3
7.088%, 12/26/25 18,725 19,301
Prudential Home Mortgage Securities 1994-28
6.755%, 04/01/98 (A) 2,197 2,239
----------
TOTAL OTHER MORTGAGE-BACKED OBLIGATIONS
(Cost $50,566) 51,003
----------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED
OBLIGATIONS--5.4%
FHLMC 1659
5.500%, 01/15/01 1,632 1,618
FHLMC 1902
7.000%, 05/15/03 2,780 2,821
FHLMC 1606-H
6.000%, 11/15/08 4,925 4,905
FNMA
8.450%, 07/12/99 1,000 1,033
7.350%, 03/28/05 1,000 1,078
FNMA G92-40
7.000%, 06/25/02 4,407 4,430
FNMA 1996-57
7.000%, 06/25/03 2,484 2,516
FNMA 1996-72
6.500%, 01/18/04 4,000 4,060
FNMA 1993-55
6.500%, 11/25/07 1,000 1,014
FNMA 303357
7.000%, 06/01/10 519 528
FNMA 1500
14.750%, 03/01/12 0* --
----------
TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-BACKED OBLIGATIONS
(Cost $23,724) 24,003
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
19
INTERMEDIATE TERM INCOME FUND (CONTINUED)
DESCRIPTION Par (000)/Shares Value (000)
- --------------------------------------------------------------------------------
U.S.GOVERNMENT AGENCY OBLIGATIONS--0.9%
FHLB
7.280%, 05/18/99 $ 2,000 $ 2,033
5.985%, 11/26/02 2,175 2,187
----------
TOTAL U.S.GOVERNMENT AGENCY OBLIGATIONS
(Cost $4,177) 4,220
----------
ASSET-BACKED SECURITIES--0.9%
Standard Credit Card Master Trust 1991-6A
7.875%, 01/07/00 2,013 2,036
Zale Funding Series 94-1, Cl B
7.500%, 05/15/03 (B) 2,000 2,022
----------
TOTAL ASSET-BACKED SECURITIES
(Cost $4,005) 4,058
----------
RELATED PARTY MONEY MARKET FUND--0.5%
First American Prime Obligations Fund (C) 2,390,204 2,390
----------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $2,390) 2,390
----------
TOTAL INVESTMENTS--98.4%
(Cost $438,766) 439,433
----------
OTHER ASSETS AND LIABILITIES, NET--1.6% (C) 7,122
----------
INTERMEDIATE TERM INCOME FUND (CONCLUDED)
DESCRIPTION Value (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares -- Class Y
($.0001 par value -- 2 billion authorized)
based on 44,055,051 outstanding shares $ 436,666
Portfolio Shares -- Retail Class A
($.0001 par value -- 2 billion authorized)
based on 430,077 outstanding shares 4,343
Undistributed net investment income 8
Accumulated net realized gain on investments 4,871
Net unrealized appreciation of investments 667
---------
TOTAL NET ASSETS--100.0% $ 446,555
---------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--CLASS Y $ 10.04
---------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE--RETAIL CLASS A $ 10.06
MAXIMUM SALES CHARGE OF 3.75% (1) 0.39
---------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 10.45
---------
*Par value $323 & Market Value $324
(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 March 31, 1998. 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 also the notes to the financial
statements.
(D) Other assets and liabilities representing greater than five percent of
total net assets include the following (000):
Cash collateral received for securities on loan $ 222,787
Payable upon return of securities on loan $(222,787)
Cl--Class
FHLB--Federal Home Loan Bank
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
20
INTERMEDIATE GOVERNMENT BOND FUND
DESCRIPTION Par (000)/Shares Value (000)
- -------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS--82.7%
U.S. Treasury Notes
5.125%, 11/30/98 $ 2,500 $ 2,494
6.375%, 01/15/99 7,500 7,548
6.750%, 05/31/99 18,500 18,739
6.875%, 07/31/99 4,750 4,826
7.125%, 09/30/99 16,000 16,343
7.750%, 11/30/99 3,000 3,100
6.875%, 03/31/00 3,500 3,583
6.250%, 08/31/00 24,750 25,057
7.875%, 08/15/01 19,500 20,789
7.500%, 11/15/01 7,000 7,409
7.500%, 05/15/02 1,000 1,065
6.500%, 05/31/02 23,000 23,665
7.250%, 05/15/04 12,500 13,487
7.875%, 11/15/04 13,000 14,517
6.500%, 08/15/05 7,500 7,833
7.000%, 07/15/06 12,000 12,968
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $178,778) 183,423
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS--15.5%
FFCB
6.100%, 11/04/04 6,350 6,431
FHLB
7.280%, 05/18/99 2,000 2,033
6.975%, 07/26/99 1,000 1,015
5.970%, 12/11/00 3,000 3,012
7.360%, 05/04/01 1,070 1,071
7.440%, 08/10/01 1,000 1,048
5.995%, 11/21/01 7,000 7,034
6.030%, 11/26/02 3,750 3,780
6.050%, 12/03/02 2,500 2,521
5.930%, 03/07/03 1,000 1,003
6.030%, 12/23/04 2,500 2,517
TVA
6.000%, 11/01/00 3,000 2,996
----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $34,374) 34,461
----------
RELATED PARTY MONEY MARKET FUND--0.7%
First American Government
Obligations Fund (A) 1,449,757 1,450
----------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $1,450) 1,450
----------
TOTAL INVESTMENTS--98.9%
(Cost $214,602) 219,334
----------
OTHER ASSETS AND LIABILITIES, NET--1.1% 2,432
----------
INTERMEDIATE GOVERNMENT BOND FUND (CONCLUDED)
DESCRIPTION Value (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares -- Class Y
($.0001 par value -- 2 billion authorized)
based on 23,354,336 outstanding shares $ 213,039
Portfolio Shares -- Retail Class A
($.0001 par value -- 2 billion authorized)
based on 446,432 outstanding shares 4,183
Distributions in excess of net investment income (18)
Accumulated net realized loss on investments (170)
Net unrealized appreciation of investments 4,732
---------
TOTAL NET ASSETS--100.0% $ 221,766
---------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--CLASS Y $ 9.32
---------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE--RETAIL CLASS A $ 9.33
MAXIMUM SALES CHARGE OF 3.00% (1) 0.29
---------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 9.62
---------
(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 serve as adviser for this Fund. See also the notes to the financial
statements.
FFCB--Federal Farm Credit Bank
FHLB--Federal Home Loan Bank
TVA--Tennessee Valley Authority
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
21
FIXED INCOME FUND
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS--65.4%
U.S. Treasury Bonds
7.125%, 02/15/23 $ 159,185 $ 181,603
6.875%, 08/15/25 99,410 110,815
U.S. Treasury Notes
7.500%, 10/31/99 14,850 15,266
5.625%, 11/30/99 48,950 48,956
6.500%, 05/31/01 78,995 80,886
6.250%, 10/31/01 91,515 93,149
6.250%, 02/15/03 56,745 58,088
6.500%, 08/15/05 82,270 85,925
6.875%, 05/15/06 78,530 84,142
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $746,695) 758,830
----------
CORPORATE OBLIGATIONS--18.0%
Bank America National Trust &
Savings Association
8.375%, 05/01/07 120 121
Bear Stearns
6.560%, 06/20/00 23,835 24,103
Chrysler Financial
5.850%, 05/15/00 45,945 45,773
Cigna
7.400%, 01/15/03 10,726 11,155
Cit Group Holdings
6.200%, 10/20/00 29,100 29,173
Conrail
6.760%, 05/25/15 938 963
Enron
7.125%, 05/15/07 1,000 1,037
Lehman Brothers Holdings
6.000%, 03/23/00 25,200 25,137
Money Store
7.300%, 12/01/02 26,550 27,413
Nabisco
6.300%, 08/26/99 15,900 16,002
Safeco
7.875%, 04/01/05 1,000 1,076
Santander Financial Issuances
7.250%, 05/30/06 25,890 26,926
----------
TOTAL CORPORATE OBLIGATIONS
(Cost $207,547) 208,879
----------
OTHER MORTGAGE-BACKED OBLIGATIONS--10.1%
Asset Securitization 1996-MD6
6.880%, 11/13/26 38,210 39,364
Collateralized Mortgage Corporation 88-13 C
8.000%, 09/20/19 69 71
FIXED INCOME FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Countrywide Mortgage-Backed
Securities 1994-GA3
6.500%, 04/25/24 $ 2,380 $ 2,358
Drexel Burnham Lambert Trust S-2
9.000%, 08/01/18 420 421
General Electric Capital Mortgage 1994-11 A1
6.500%, 03/25/24 3,758 3,754
General Electric Capital Mortgage 1994-17 A6
7.000%, 05/25/24 7,000 7,032
General Electric Capital Mortgage 1994-17 A7
7.000%, 05/25/24 5,179 5,149
GMAC Commercial Mortgage Securities 1997-C1
6.918%, 09/15/07 34,535 35,424
J.P. Morgan Commercial Mortgage Finance 1995-C1
5.568%, 04/01/98 (A) 10,329 11,109
Merrill Lynch Mortgage Investors 1993-A4
6.688%, 03/15/18 (A) 6,000 6,062
Prudential Home Mortgage Securities 1994-28
6.755%, 04/01/98 (A) 5,770 5,882
Residential Funding 1992-36 A2
5.700%, 11/25/07 65 65
----------
TOTAL OTHER MORTGAGE-BACKED OBLIGATIONS
(Cost $114,454) 116,691
----------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED OBLIGATIONS--3.7%
FHLMC 1643-PK
6.500%, 12/15/23 5,439 5,446
FHLMC 1665-KZ
6.500%, 01/15/24 7,578 7,255
FHLMC 1723-PJ
7.000%, 02/15/24 7,133 7,405
FHLMC 1726-C
6.750%, 12/15/05 5,046 5,132
FHLMC 51-VA
7.000%, 04/17/06 12,752 13,043
FNMA 1993-139
6.750%, 12/25/21 3,958 4,021
----------
TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-BACKED OBLIGATIONS
(Cost $39,736) 42,302
----------
ASSET-BACKED SECURITY--0.4%
Zale Funding 1994-1 Cl B
7.500%, 05/15/03 (B) 4,100 4,145
----------
TOTAL ASSET-BACKED SECURITY
(Cost $4,048) 4,145
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
22
FIXED INCOME FUND (CONCLUDED)
DESCRIPTION Par (000)/Shares Value (000)
- --------------------------------------------------------------------------------
TAXABLE MUNICIPAL BOND--0.2%
Minneapolis, Minnesota, Single Family Mortgages,
Callable 10/01/05 @ 100 (RB)
6.920%, 04/01/09 $ 2,675 $ 2,676
----------
TOTAL TAXABLE MUNICIPAL BOND
(Cost $2,675) 2,676
---------
RELATED PARTY MONEY MARKET FUND--1.0%
First American Prime Obligations Fund (C) 11,500,140 11,500
----------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $11,500) 11,500
---------
TOTAL INVESTMENTS--98.8%
(Cost $1,126,655) 1,145,023
---------
OTHER ASSETS AND LIABILITIES, NET--1.2% (D) 14,418
---------
NET ASSETS:
Portfolio Shares -- Class Y
($.0001 par value -- 2 billion authorized)
based on 101,783,524 outstanding shares 1,102,813
Portfolio Shares -- Retail Class A
($.0001 par value -- 2 billion authorized)
based on 1,028,016 outstanding shares 11,387
Portfolio Shares -- Retail Class B
($.0001 par value -- 2 billion authorized)
based on 1,452,144 outstanding shares 15,833
Distributions in excess of net investment income (268)
Accumulated net realized gain on investments 11,308
Net unrealized appreciation of investments 18,368
---------
TOTAL NET ASSETS--100.0% $1,159,441
---------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--CLASS Y $ 11.12
---------
NET ASSET VALUE AND REDEMPTION
RICE PER SHARE--RETAIL CLASS A $ 11.12
MAXIMUM SALES CHARGE OF 3.75% (1) 0.43
---------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 11.55
---------
NET ASSET VALUE AND OFFERING
PRICE PER SHARE--RETAIL CLASS B (2) $ 11.07
---------
(1) The offer price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 3.75%.
(2) Retail Class B has a contingent deferred sales charge. For a description of
possible redemption charges, see the notes to the financial statements.
(A) Variable Rate Security--the rate reported on the Statement of Net Assets is
the rate in effect as of March 31, 1998.
(B) Security sold within the terms of a private 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 serve as adviser for this Fund. See also the notes to the financial
statements.
(D) Other assets and liabilities representing greater than five percent of
total net assets include the following (000):
Cash collateral received $ 566,266
Payable upon securities Loaned $(566,266)
Cl--Class
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
GMAC--General Motors Acceptance Corporation
RB--Revenue Bond
CALIFORNIA INTERMEDIATE TAX FREE FUND
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS--97.9%
CALIFORNIA--96.3%
Alisal California Unified School District,
Capital Appreciation, Series C (GO) (FGIC)
0.000%, 08/01/08 $ 5,860 $ 534
Anaheim Electric (RB)
4.800%, 10/01/02 500 514
Bakersfield, Convention Center Project
(COP) (MLO) (MBIA)
5.500%, 04/01/10 250 266
Burbank, Public Service Department (RB) (AMBAC)
6.100%, 06/01/01 200 212
California Educational Facilities Authority,
Occidental College, Callable 10/01/07 @ 102
(RB) (MBIA)
5.300%, 10/01/10 500 526
California Educational Facilities Authority,
Pooled College & University Projects, Series A (RB)
4.850%, 12/01/01 500 512
California Health Facilities Authority, John C Fremont
Hospital District (RB) (CMI)
6.000%, 06/01/04 400 425
California Health Facilities Authority,
Sutter Health Finance (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%, 08/01/03 190 197
California Housing Finance Agency, Series E
(RB) (MBIA)
5.850%, 08/01/04 150 158
California Resource Efficiency Finance Authority,
First Resource Efficiency Project (RB) (AMBAC)
5.200%, 07/01/02 500 521
California State (GO) (AMBAC)
6.300%, 11/01/02 300 328
California State Department of Water, Center
Valley Project, Callable 12/01/05 @ 101 (RB)
5.000%, 12/01/12 500 503
California State Department of Water, Series P,
Callable 06/01/06 @ 101 (RB)
5.300%, 12/01/07 750 796
California State Public Works, Department of
Corrections, Series A (RB) (MLO) (AMBAC)
6.000%, 01/01/06 545 602
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
CALIFORNIA INTERMEDIATE TAX FREE FUND (CONTINUED)
23
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
California State Public Works, Various
University Projects (RB)
5.900%, 10/01/01 $ 100 $ 106
5.000%, 06/01/03 150 156
California State Public Works, Various University
Projects, Series A (RB) (MLO) (AMBAC)
5.400%, 12/01/00 250 259
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%, 08/01/04 200 208
Contra Costa Water District, Series G (RB) (MBIA)
5.400%, 10/01/03 500 530
Contra Costa Water District, Water Recovery,
Callable 10/01/07 @ 100 (RB)
5.000%, 10/01/15 340 333
Escondido Civic Center Project, Escrowed to
Maturity (RB) (AMBAC)
5.800%, 09/01/04 100 109
Fontana, School District (GO) (MBIA)
5.550%, 07/01/04 500 538
Fresno, Unified School District (GO) (MBIA)
6.050%, 08/01/11 500 562
Industry, Callable 07/01/02 @ 100.25 (GO) (FGIC)
5.800%, 07/01/04 100 107
Inglewood, Public Financing Authority
(RB) (AMBAC)
5.900%, 05/01/01 100 106
Inland Empire Solid Waste Authority, Landfill
Improvements Project, Series B (RB)
(AMT) (MLO) (FSA)
5.750%, 02/01/04 500 535
La Canada, Unified School District (GO) (FGIC)
5.100%, 08/01/03 400 420
Los Angeles County, Public Works Finance
Authority, Callable 03/01/03 @ 102 (RB)
4.800%, 03/01/04 400 411
Los Angeles County, Public Works Finance
Authority, Regional Park & Open
Space District, Series A (RB)
5.500%, 10/01/02 500 528
Los Angeles County, Public Works Finance
Authority, Regional Park & Open Space
District, Series A (RB)
5.625%, 10/01/03 500 534
CALIFORNIA INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Los Angeles County, Public Works Finance
Authority, Regional Park & Open Space
District, Series A, Callable 10/01/07 @ 101 (RB)
5.000%, 10/01/19 $ 265 $ 257
os Angeles County, Transportation
Commission, Series B (RB) (FGIC)
5.875%, 07/01/02 250 267
Los Angeles County, Transportation
Commission, Series B (RB) (FGIC)
6.000%, 07/01/04 250 275
Los Angeles, Department of Water & Power,
Callable 04/15/02 @ 102 (RB)
6.100%, 04/15/03 250 272
Los Angeles, Earthquake Rehabilitation, Series C,
Callable 01/01/00 @ 100
(RB) (AMT) (FNMA)
4.850%, 07/01/02 1,000 1,011
Los Angeles, Harbor Department (RB) (AMT)
6.000%, 08/01/00 500 522
Los Angeles, Sanitation Equipment, Series A
(RB) (MLO) (FSA)
6.000%, 02/01/07 500 556
Los Angeles, School District,
Callable 07/01/08 @ 102 (GO) (FGIC)
4.900%, 07/01/09 300 309
Los Angeles, Series A, Callable 09/01/04 @ 102
(GO) (MBIA)
5.800%, 09/01/07 250 273
Martinez County, School District,
Callable 08/01/00 @ 102 (GO)
5.750%, 08/01/05 150 157
Marysville, Hospital Revenue, Freedmont-Rideout,
Series A, Callable 01/01/09 @ 102 (AMBAC)
5.000%, 01/01/10 500 511
Modesto, Water Utility System Refinancing
Project (RB) (FGIC)
5.000%, 10/01/05 740 770
Montebello, Community Redevelopment
Agency (RB) (FSA)
4.750%, 09/01/07 270 272
Mt. Diablo, Unified School District, Community
Facilities District, Callable 08/01/02 @ 102
(RB) (AMBAC)
5.800%, 08/01/03 100 107
Northern California Transmission Agency,
Cal-Ore Project (RB) (MBIA)
6.000%, 05/01/02 100 107
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
24
CALIFORNIA INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Oakland-Alameda County, Coliseum
Authority, Series A (RB) (LOC: Canadian
Imperial Bank) (MLO)
4.400%, 02/01/00 $ 115 $ 116
Oceanside, Water System (COP) (AMBAC)
5.100%, 08/01/02 500 520
Orange County, Juvenile Justice Center
Facility (COP) (MLO) (AMBAC)
5.750%, 06/01/01 100 105
Orange County, Public Finance Authority-
Waste Management Revenue
(RB) (AMBAC) (AMT)
4.700%, 12/01/05 500 501
Orange County, Transportation Authority,
Callable 02/15/02 @ 102 (RB)
5.700%, 02/15/03 900 959
Oxnard, School District (GO) (MBIA)
5.000%, 08/01/05 600 627
Paradise, Unified School District, Measure M
Project, Series A, Callable 09/01/05 @ 102
(COP) (MLO) (AMBAC)
5.250%, 09/01/07 300 318
Pomona, Unified School District,
Series A (GO) (MBIA)
5.450%, 02/01/06 250 269
Pomona, Unified School District,
Series A (GO) (MBIA)
5.500%, 08/01/06 250 271
Rancho Mirage Joint Powers Finance
Authority, Eisenhower Medical Center,
Series A, Callable 07/01/07 @ 102 (COP) (MBIA)
5.125%, 07/01/08 500 521
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 Mortgage, Series A (RB) (FNMA)
5.150%, 06/01/03 130 132
Rio Linda, School District,
Callable 08/01/08 @ 100 (GO) (FSA)
5.000%, 08/01/09 500 518
Roseville, High School District,
Callable 08/01/00 @ 102 (GO)
5.750%, 08/01/02 100 105
CALIFORNIA INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Sacramento County, Multifamily Housing,
Parcwood Apartments, Mandatory
Put @ 100 (RB) (CGLI)
4.800%, 03/01/06 (C) $ 1,000 $ 1,019
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 Diego County, Water Authority,
Callable 05/01/08 @ 101 (COP)
5.000%, 05/01/13 505 506
San Diego County, Water Authority, Series A (COP)
5.250%, 05/01/06 500 529
San Francisco, City & County Airport
Commission, Second Series (RB) (AMT) (FGIC)
5.400%, 05/01/06 500 526
San Francisco, City & County Library
Facilities Project, Series D,
Callable 06/15/00 @ 102 (GO)
5.700%, 06/15/01 250 262
San Francisco, City & County Library
Facilities Project, Series D,
Pre-refunded @ 102 (GO)
5.800%, 06/15/00 (A) 250 264
San Francisco, City & County Public
Improvements, Series B,
Pre-refunded @ 100 (GO)
6.700%, 12/15/00 (A) 200 214
San Francisco, Fire Department Facility
Project, Series C (GO) (FGIC)
7.000%, 06/15/03 300 340
San Joaquin Hills, Transportation Corridor
Agency, Capital Appreciation
(RB) (MBIA)
0.000%, 01/15/05 (B) 705 521
San Jose, Finance Authority, Convention
Center Project, Series C (RB) (MLO)
5.750%, 09/01/01 250 262
Santa Ana, Community Redevelopment
Agency, Series A, Pre-refunded @ 102 (GO)
6.500%, 12/15/00 (A) 860 920
Santa Rosa, Wastewater, Series B (RB) (FGIC)
5.400%, 09/01/00 250 258
South County, Regional Waste Water
Authority (RB) (AMBAC)
5.600%, 08/01/02 100 106
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
25
CALIFORNIA INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000)/Shares Value (000)
- --------------------------------------------------------------------------------
South Pasadena, Unified School District,
Capital Appreciation (GO) (FGIC)
0.000%, 11/01/12 $ 740 $ 359
Southern California Metropolitan Waterworks,
Series B (RB) (MBIA)
4.875%, 07/01/10 500 506
Southern California Metropolitan Waterworks,
Series B (RB) (MBIA)
5.000%, 07/01/14 500 494
Stockton-East Water District,
Callable 04/01/00 @ 102 (COP) (AMBAC)
5.550%, 04/01/01 100 102
Sulphur Springs, Unified School District,
Series B (GO)
5.400%, 03/01/02 500 522
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 (B) 300 315
Walnut Valley School District,
Series A (GO) (MBIA)
6.800%, 02/01/07 250 293
6.850%, 08/01/07 250 296
West Covina, Civic Center Project (COP) (MLO) (FSA)
5.250%, 09/01/07 250 265
West Covina, Redevelopment Agency,
Community Facilities District (RB)
5.125%, 09/01/05 300 313
William S. Hart Joint School Financing
Authority, Callable 09/01/05 @ 102 (RB) (FSA)
6.100%, 09/01/06 200 224
----------
33,523
----------
PUERTO RICO--1.6%
Commonwealth of Puerto Rico (GO) (MBIA)
6.250%, 07/01/08 500 569
----------
TOTAL MUNICIPAL BONDS
(Cost $32,757) 34,092
----------
MONEY MARKET FUND--2.4%
Provident California Tax Free Money Market 822,350 822
----------
CALIFORNIA INTERMEDIATE TAX FREE FUND (CONCLUDED)
DESCRIPTION Value (000)
- --------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost $822) $ 822
---------
TOTAL INVESTMENTS--100.3%
(Cost $33,579) 34,914
---------
OTHER ASSETS AND LIABILITIES, NET--(0.3%) (95)
---------
NET ASSETS:
Portfolio Shares --Class Y
($.0001 par value -- 2 billion authorized)
based on 3,452,521 outstanding shares 33,419
Portfolio Shares -- Retail Class A
($.0001 par value -- 2 billion authorized)
based on 107 outstanding shares 1
Undistributed net investment income 8
Accumulated net realized gain on investments 56
Net unrealized appreciation of investments 1,335
---------
TOTAL NET ASSETS--100.0% $ 34,819
---------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--CLASS Y $ 10.08
---------
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) Pre-refunded Security--the pre-refunded date is shown as the maturity date
on the Statement of Net Assets.
(B) 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.
(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
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
RB--Revenue Bond
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
26
COLORADO INTERMEDIATE TAX FREE FUND
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS--97.4%
COLORADO--97.4%
Adams & Arapahoe Counties, Joint School District
#28-J,Callable 12/01/06 @ 102 (GO) (FGIC)
5.750%, 12/01/07 $ 1,000 $ 1,102
Adams County, School District #12,
Callable 12/15/03 @ 100 (GO) (FGIC)
6.200%, 12/15/08 455 495
Adams County, School District #50 (GO)
5.125%, 12/01/00 1,000 1,027
Adams County, School District #50,
Callable 12/01/06 @ 100 (GO)
5.250%, 12/01/10 750 783
Arapahoe County, Cherry Creek School
District #5, Callable 12/15/00 @ 101 (GO)
6.800%, 12/15/01 1,000 1,077
Arapahoe County, Cherry Creek School District #5,
Callable 12/15/03 @ 100 (GO) (STAID)
5.250%, 12/15/04 500 525
Arapahoe County, Littleton School District #6,
Callable 12/01/06 @ 102 (GO) (STAID)
5.250%, 12/01/10 1,000 1,050
Arapahoe County, Littleton School District #6,
Callable 12/01/06 @ 102 (GO) (STAID)
5.125%, 12/01/09 1,000 1,047
Aurora, Callable 12/01/04 @ 101 (COP) (MLO)
6.000%, 12/01/06 1,000 1,065
Aurora, Community College
Project (RB) (MLO) (CLE)
5.750%, 10/15/04 500 542
Boulder County, Sales & Use Tax (RB) (FGIC)
5.750%, 12/15/05 1,000 1,090
Boulder Valley, School District #2,
Callable 12/01/07 @ 101 (GO) (FGIC)
5.000%, 12/01/12 1,000 1,010
Boulder Valley, School District #R-2,
Callable 10/15/01 @ 100 (GO)
5.900%, 10/15/02 500 528
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 1,102
COLORADO INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Boulder, Larimer, & Weld Counties,
Vrain Valley School District,
Pre-refunded @ 101 (GO)
7.200%, 12/15/99 (B) $ 500 $ 531
Boulder, Larimer, & Weld Counties,
Vrain Valley School District,
Callable 12/15/04 @ 100 (GO) (MBIA)
5.800%, 12/15/07 500 532
Boulder, Larimer, & Weld Counties, School
Improvements, Callable 12/15/2007 @ 101
(GO) (FGIC)
5.000%, 12/15/22 1,000 976
Boulder, Urban Renewal Tax Allocation (RB) (MBIA)
5.700%, 03/01/00 1,250 1,289
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 1,013
Colorado State Health Facility Authority,
Sisters of Charity (RB) (MBIA)
5.500%, 12/01/07 1,000 1,073
Colorado Springs, Memorial Hospital,
Callable 12/15/05 @ 102 (RB) (MBIA)
6.000%, 12/15/15 500 543
Colorado Springs, Series A,
Callable 11/15/01 @ 102 (RB)
6.625%, 11/15/04 1,000 1,094
Colorado Springs, Series A,
Callable 11/15/01 @ 102 (RB)
6.500%, 11/15/15 1,495 1,624
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%, 10/01/03 500 509
Colorado State Housing Finance Authority,
Single Family Mortgages, Series B-1 (RB) (AMT)
5.875%, 06/01/11 760 810
Colorado State Student Obligations
Board Authority, Series C (RB)
4.400%, 03/01/00 600 602
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
27
COLORADO INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Colorado State Water Resource & Power
Development Authority (RB) (AMBAC)
5.500%, 09/01/04 $ 1,000 $ 1,069
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 1,081
Denver, City & County Airport, Series D
(RB) (MORG) (AMT)
3.850%, 04/01/98 (A) 500 500
Denver, City & County Water,
Callable 09/01/01 @ 100 (RB)
5.250%, 09/01/07 500 513
Douglas & Elbert Counties, School District #1,
Callable 12/15/04 @ 101 (GO) (MBIA) (STAID)
6.400%, 12/15/11 1,000 1,131
Eagle, Garfield, & Routt Counties, School
District #50-J, Callable 12/01/04 @ 102
(GO) (FGIC) (STAID)
6.125%, 12/01/09 1,290 1,421
El Paso County, School District #2 (GO)
7.050%, 12/01/04 1,000 1,155
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%, 12/15/05 500 553
Fort Collins, Callable 12/01/02 @ 101 (GO)
6.400%, 12/01/09 575 618
Garfield, Pitkin, & Eagle Counties,
School District #1 (GO) (MBIA)
6.000%, 12/15/04 1,000 1,105
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 1,100
Jefferson County, School District #R-1,
Callable 12/15/02 @ 101 (GO) (AMBAC) (STAID)
5.900%, 12/15/04 1,045 1,131
COLORADO INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
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%, 12/15/04 750 781
Larimer County, School District #R-1 Poudre,
Callable 12/15/02 @ 101 (GO) (MBIA)
6.150%, 12/15/16 1,000 1,061
Larimer, Weld, & Boulder Counties,
School District #R-2 Thompson,
Callable 12/15/04 @ 100 (GO)
5.900%, 12/15/06 1,000 1,081
Louisville, Callable 06/01/98 @ 101 (GO) (FGIC)
7.200%, 12/01/04 465 472
Metex Metropolitan District, Series A (GO) (MBIA)
5.000%, 12/01/03 500 521
Metro Wastewater Reclamation District,
Series B (RB) (MBIA)
6.750%, 04/01/01 615 660
Moffat County, Pollution Control (RB) (AMBAC)
5.500%, 11/01/05 1,000 1,073
Mountain Village Metropolitan District,
Callable 12/01/07 @ 101 (GO) (MBIA)
5.200%, 12/01/17 1,000 1,005
Platte River Power Authority, Series BB (RB)
5.500%, 06/01/02 500 529
Pueblo (GO) (MBIA)
6.000%, 05/01/00 500 521
Pueblo County, Single Family Mortgages,
Callable 11/01/04 @ 102 (RB) (FNMA/GNMA)
6.400%, 11/01/13 915 939
Pueblo, Urban Renewal Authority,
Callable 12/01/03 @ 101 (RB) (AMBAC)
5.800%, 12/01/09 840 898
Regional Transit District (RB)
5.750%, 11/01/01 1,500 1,581
South Suburban Park & Recreation District,
Capital Appreciation (GO) (MBIA)
0.000%, 12/15/01 1,000 859
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 1,413
Thornton (GO) (FGIC)
5.600%, 12/01/02 1,000 1,066
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
28
COLORADO INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000)/Shares Value (000)
- --------------------------------------------------------------------------------
Thornton, Callable 12/01/02 @ 101 (GO) (FGIC)
5.650%, 12/01/03 $ 1,000 $ 1,071
University of Colorado,
Callable 06/01/99 @ 101 (RB)
6.800%, 06/01/02 300 312
University of North Colorado, Facility Revenue
System, Callable 06/01/07 @ 100 (RB) (MBIA)
5.600%, 06/01/24 1,000 1,045
Weld County, School District #6,
Callable 12/01/07 @ 101 (GO)
5.000%, 12/01/08 1,000 1,038
Westminster, Sales & Use Tax,
Callable 12/01/07 @ 101 (RB) (FGIC)
5.250%, 12/01/11 500 518
Westminster, Sales & Use Tax,
Series B (RB) (FGIC)
6.250%, 12/01/05 500 561
Westminster, Water & Wastewater Utility
Enterprise, Callable 10/01/04 @ 100
(RB) (AMBAC)
5.800%, 12/01/05 1,000 1,081
----------
TOTAL MUNICIPAL BONDS
(Cost $54,782) 57,823
----------
MONEY MARKET FUND--0.9%
Federated Tax Free Money Market 564,292 564
----------
TOTAL MONEY MARKET FUND
(Cost $564) 564
----------
TOTAL INVESTMENTS--98.3%
(Cost $55,346) 58,387
----------
OTHER ASSETS AND LIABILITIES, NET--1.7% 980
----------
COLORADO INTERMEDIATE TAX FREE FUND (CONCLUDED)
DESCRIPTION Value (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares -- Class Y
($.0001 par value -- 2 billion authorized)
based on 5,202,175 outstanding shares $ 52,502
Portfolio Shares -- Retail Class A
($.0001 par value -- 2 billion authorized)
based on 364,490 outstanding shares 3,781
Accumulated net realized gain on investments 43
Net unrealized appreciation of investments 3,041
---------
TOTAL NET ASSETS--100.0% $ 59,367
---------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--CLASS Y $ 10.66
---------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE--RETAIL CLASS A $ 10.67
MAXIMUM SALES CHARGE OF 3.00% (1) 0.33
---------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 11.00
---------
(1) The offer price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 3.00%.
(A) Variable Rate Security--the rate reported on the Statement of Net Assets is
the rate in effect as of March 31, 1998. 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--Connie Lee
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
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
29
MINNESOTA INTERMEDIATE TAX FREE FUND
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS--98.1%
MINNESOTA--96.3%
Anoka-Hennepin, School District #11,
Callable 02/01/03 @ 100 (GO) (FGIC)
4.875%, 02/01/07 $ 3,300 $ 3,358
Anoka-Hennepin, School District #11,
Series C (GO) (FGIC)
4.600%, 02/01/01 5,000 5,081
Anoka County, Northern States Power,
Callable 12/01/99 @ 102 (GO)
6.850%, 12/01/01 1,000 1,066
Anoka County, Resource Recovery (GO)
5.550%, 02/01/05 2,000 2,077
Bass Brook, Minnesota Power & Light,
Pollution Control (RB)
6.875%, 12/01/02 2,000 2,100
Becker, Tax Increment, Series D,
Callable 08/01/04 @ 100 (GO) (AMT) (MBIA)
6.000%, 08/01/07 3,955 4,286
Bemidji, Independent School District #031,
Callable 04/01/07 @ 100 (GO) (FSA)
5.000%, 04/01/19 3,000 2,966
Bloomington Port Authority,
Callable 03/01/00 @ 100 (GO)
6.000%, 03/01/03 1,800 1,858
Bloomington Port Authority, Mall of America
Project, Series A (RB) (FSA)
5.000%, 02/01/01 1,090 1,116
Bloomington Port Authority, Mall of America
Project, Series A, Callable 02/01/04 @ 100
(RB) (FSA)
5.450%, 02/01/09 3,850 4,081
Bloomington Port Authority, Mall of America
Project, Series A (RB) (FSA)
5.000%, 02/01/02 1,585 1,631
Chaska, Independent School District #112
(GO) (SDCP)
4.800%, 02/01/10 2,220 2,234
Chaska, Independent School District #112,
Series A (GO) (SDCP)
4.600%, 02/01/07 1,835 1,849
Coon Rapids, Multifamily Housing,
Woodland North Apartments,
Callable 12/01/03 @ 100 (RB) (FHA)
5.625%, 12/01/09 445 457
Coon Rapids, Single Family Mortgage,
Callable 09/01/04 @ 102 (RB)
5.900%, 09/01/06 1,040 1,108
MINNESOTA INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Dakota County, Housing & Redevelopment
Authority (RB) (MLO)
4.950%, 02/01/02 $ 1,000 $ 1,025
Dakota County, Housing & Redevelopment
Authority, Callable 04/01/05 @ 102 (RB)
(AMT) (FNMA/GNMA)
6.000%, 10/01/14 1,370 1,385
Dakota County, Housing & Redevelopment
Authority, Callable 10/01/07 @ 101.5
(RB) (GNMA)
5.125%, 10/01/20 1,368 1,390
Dakota County, Housing & Redevelopment
Authority, Single Family Mortgage,
Callable 04/01/04 @ 102
(RB) (AMT) (FNMA)
6.250%, 10/01/04 935 988
Dakota County, Housing & Redevelopment
Authority, Single Family Mortgage,
Callable 09/01/98 @ 103
(RB) (FHA/GNMA/VA)
7.250%, 03/01/06 500 505
Dakota, Washington, & Stearns Counties,
Housing & Redevelopment Authority,
Single Family Mortgage, Callable 03/01/04 @
102 (RB) (AMT) (FNMA)
6.000%, 09/01/04 480 508
Dakota, Washington, & Stearns Counties,
Housing & Redevelopment Authority,
Single Family Mortgage,
Callable 03/01/04 @ 102
(RB) (AMT) (FNMA)
6.500%, 09/01/10 725 775
Duluth, Economic Development Authority,
Health Care Facility, Callable 11/01/02 @ 102
(RB) (AMBAC)
6.100%, 11/01/04 650 714
Duluth, Economic Development Authority,
Health Care Facility, Escrowed to Maturity
(RB) (AMBAC)
6.100%, 11/01/04 250 273
Faribault, Independent School District #656
(GO) (FSA)
4.625%, 06/01/07 1,525 1,544
Faribault, Independent School District #656,
Callable 06/01/08 @ 100 (GO) (FSA)
4.625%, 06/01/09 2,000 1,997
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
30
MINNESOTA INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Fridley, School District #14,
Callable 02/01/05 @ 100 (GO) (FSA)
5.350%, 02/01/26 $ 5,000 $ 5,056
Hopkins, Independent School District #270,
Series A, Callable 02/01/03 @ 100
(GO) (MBIA)
4.800%, 02/01/05 2,000 2,037
Lakeville, Independent School District #194,
Callable 02/01/09 @ 100 (GO)
5.000%, 02/01/16 2,500 2,500
Lakeville, Independent School District #194,
Series A, Callable 02/01/08 @ 100
(GO) (SDCP)
5.125%, 02/01/22 6,000 5,970
Mankato, Independent School District #77,
Series A, Callable 02/01/04 @ 100
(GO) (FSA)
5.100%, 02/01/07 1,000 1,030
Minneapolis & St. Paul, Housing Finance
Board, Callable 11/01/04 @ 102
(RB) (AMT) (FNMA/GNMA)
6.800%, 11/01/08 1,050 1,160
Minneapolis & St. Paul, Housing &
Redevelopment Authority, Health One
Obligated Group, Callable 08/15/00 @ 102
(RB) (MBIA)
7.300%, 08/15/01 1,000 1,090
Minneapolis & St. Paul, Housing &
Redevelopment Authority, Health One
Obligated Group, Series C,
Pre-refunded @ 102 (RB)
8.000%, 08/15/00 (B) 1,000 1,107
Minneapolis & St. Paul, Housing &
Redevelopment Authority, Healthspan,
Series A, Callable 11/15/03 @ 102
(RB) (AMBAC)
5.000%, 11/15/07 2,000 2,037
5.000%, 11/15/13 2,000 1,975
Minneapolis St. Paul, Housing Finance Board,
Single Family Mortgage, Phase VI, Series A,
Callable 08/01/98 @ 102 (RB)
7.700%, 08/01/00 145 149
Minneapolis St. Paul, Housing Finance Board,
Single Family Mortgage, Series A,
Callable 06/01/99 @ 102 (RB) (AMT)
(FHA/GNMA/VA)
7.875%, 12/01/12 315 321
Minneapolis St. Paul, Metropolitan Airports Commission,
Series 10, Callable 01/01/03 @ 100 (RB)
5.000%, 01/01/05 1,000 1,021
MINNESOTA INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Minneapolis St. Paul, Metropolitan Airports
Commission, Series 8,
Callable 01/01/02 @ 100 (RB) (AMT)
6.350%, 01/01/04 $ 2,500 $ 2,669
Minneapolis St. Paul, Metropolitan Airports
Commission, Series 8,
Callable 01/01/02 @ 100 (RB) (AMT)
6.100%, 01/01/03 1,500 1,592
Minneapolis, Community Development
Agency (RB) (MBIA)
7.000%, 03/01/01 2,500 2,706
Minneapolis, Community Development
Agency, Capital Appreciation (RB) (MBIA)
0.000%, 03/01/02 5,000 4,262
Minneapolis, Escrowed to Maturity (GO)
5.300%, 11/01/99 1,500 1,537
Minneapolis, Health Care Facilities Authority,
Fairview Hospital & Healthcare,
Series A (RB) (MBIA)
4.800%, 11/15/02 1,000 1,022
Minneapolis, Health Care Facilities Authority,
Fairview Hospital & Healthcare,
Callable 11/15/03 @ 102 (RB) (MBIA)
5.100%, 11/15/05 1,000 1,041
Minneapolis, Mortgage Revenue, Capital
Appreciation, Callable 10/01/05 @ 100 (RB)
0.000%, 10/01/12 2,950 1,066
Minneapolis, Pre-refunded @ 100 (GO)
6.250%, 03/01/02 (B) 1,000 1,075
6.350%, 03/01/02 (B) 1,200 1,294
Minneapolis, Sales Tax,
Callable 04/01/02 @ 102 (RB)
6.150%, 10/01/05 2,400 2,592
Minneapolis, Series B,
Callable 09/01/05 @ 100 (GO)
5.050%, 03/01/06 6,000 6,277
Minneapolis, Special School District #1
(GO) (SDCP)
5.000%, 02/01/04 3,375 3,497
Minneapolis, Special School District #1,
Series A (COP)
4.375%, 02/01/07 1,400 1,391
Minneapolis, Special School District #1,
Series A, Callable 02/01/06 @ 100
(COP) (MBIA) (MLO)
5.900%, 02/01/11 2,150 2,284
Minneapolis, Special School District #1,
Series B, Callable 02/01/03 @ 100
(COP) (MLO) (AMBAC)
5.400%, 02/01/04 2,000 2,090
5.500%, 02/01/05 2,000 2,090
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
31
MINNESOTA INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Minnesota Agricultural & Economic
Development Board, Fairview Hospital
Project (RB) (MBIA)
5.400%, 11/15/08 $ 1,000 $ 1,056
Minnesota Agricultural & Economic
Development Board, Fairview Hospital
Project, Series A, Callable 11/15/07 @ 102
(RB) (MBIA)
5.500%, 11/15/17 1,500 1,566
Minnesota Agricultural & Economic
Development Board, Fairview Hospital
Project (RB) (MBIA)
5.750%, 11/15/26 2,000 2,115
Minnesota Higher Education Facilities
Authority, University of St. Thomas,
Series 3-C, Pre-refunded @ 101 (RB)
7.125%, 09/01/00 (B) 2,095 2,263
Minnesota Public Facilities Authority,
Water Pollution Control, Series B,
Callable 03/01/01 @ 102 (RB)
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 4,736
Minnesota Public Facilities Authority, Water
Pollution Control (RB)
5.000%, 03/01/06 1,490 1,557
Minnesota Public Facilities Authority, Water
Pollution Control, Callable 03/01/08 @ 100,
Series A (RB)
4.500%, 03/01/10 5,000 4,962
Minnesota State (GO)
5.000%, 04/01/03 1,000 1,041
Minnesota State Housing Finance Agency,
Rental Housing, Series D (RB) (MBIA)
4.650%, 02/01/00 1,790 1,806
5.050%, 08/01/03 890 917
5.150%, 08/01/04 885 916
Minnesota State Housing Finance Agency,
Rental Housing, Series D, Callable
02/01/05 @ 102 (RB) (MBIA)
5.450%, 08/01/07 2,680 2,804
Minnesota State Housing Finance Agency,
Single Family Mortgage, Series C
(RB) (FHA)
7.700%, 01/01/99 315 321
Minnesota State Housing Finance Agency,
Single Family Mortgage, Series C,
Callable 01/01/01 @ 102 (RB) (FHA/VA)
6.600%, 07/01/02 735 777
MINNESOTA INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Minnesota State Housing Finance Agency,
Single Family Mortgage, Series D
(RB) (AMBAC)
4.500%, 07/01/01 $ 2,000 $ 2,025
Minnesota State Housing Finance Agency,
Single Family Mortgage, Series D,
Callable 01/01/04 @ 102 (RB) (AMBAC)
4.800%, 07/01/04 3,400 3,476
Minnesota State,
Callable 08/01/07 @ 100 (GO)
4.800%, 08/01/11 2,710 2,717
4.850%, 08/01/12 5,420 5,400
Minnesota State,
Pre-refunded @ 100 (GO)
5.750%, 08/01/02 (B) 5,000 5,313
Minnesota State, Series A (RB) (AMBAC)
5.000%, 06/30/00 4,000 4,100
Minnesota State, Tax-Exempt Mortgage Trust,
Series C (RB) (MLO) (NN)
4.362%, 09/01/10 57 58
New Prague, School District #721,
Callable 02/01/06 @ 100 (GO) (MBIA)
5.000%, 02/01/16 2,000 1,988
Northern Municipal Power Agency,
Series A (RB) (AMBAC)
5.500%, 01/01/03 2,500 2,638
Northern Municipal Power Agency, Series A,
Callable 01/01/03 @ 102 (RB) (AMBAC)
5.600%, 01/01/04 1,900 2,045
Northern Municipal Power Agency, Series A,
Callable 01/01/05 @ 100 (RB) (AMBAC)
5.900%, 01/01/07 1,800 1,960
Northern Municipal Power Agency, Series A,
Callable 01/01/99 @ 102 (RB) (AMBAC)
7.250%, 01/01/00 1,700 1,776
Northern Municipal Power Agency, Series A,
Callable 01/01/99 @ 102 (RB) (MBIA)
7.300%, 01/01/01 1,835 1,915
Northern Municipal Power Agency, Electric
Systems Revenue (RB) (FSA)
5.500%, 01/01/07 3,000 3,188
Olmsted County, Housing & Redevelopment
Authority, Pre-refunded @ 100
(RB) (MLO)
7.000%, 02/01/01 (B) 1,025 1,103
Olmsted County, Housing & Redevelopment
Authority, Pre-refunded @ 100
(RB) (MLO)
7.000%, 02/01/01 (B) 2,000 2,153
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
32
MINNESOTA INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Olmsted County, Resource Recovery,
Series A, Callable 02/01/02 @ 100 (RB)
5.800%, 02/01/04 $ 1,850 $ 1,949
Osseo, Independent School District #279,
Callable 02/01/03 @ 100 (GO) (FGIC)
5.400%, 02/01/05 2,525 2,626
Osseo, Independent School District, Series A,
Callable 02/01/00 @ 100 (GO)
5.500%, 02/01/01 1,300 1,331
Pipestone, Industrial Development, Cargill
Project (RB)
5.000%, 09/01/00 1,890 1,937
Plymouth, Health Facilities,
Callable 06/01/04 @ 102 (RB) (CGIC)
6.200%, 06/01/11 1,360 1,482
Princeton, Independent School District #477,
Callable 02/01/07 @ 100 (GO) (FSA)
5.125%, 02/01/24 2,000 1,963
Ramsey & Washington Counties, Resource
Recovery, Northern States Power, Series A,
Callable 05/26/98 @ 103 (RB)
6.200%, 12/01/00 1,000 1,034
Red Wing, Independent School District #256,
Series A, Callable 02/01/03 @ 100 (GO)
5.250%, 02/01/05 1,010 1,049
Richfield, Independent School District #280
(GO) (FGIC)
4.550%, 02/01/03 7,180 7,279
Robbinsdale, North Memorial Medical
Center, Series B (RB) (AMBAC)
5.100%, 05/15/03 1,000 1,045
Robbinsdale, North Memorial Medical
Center, Series A (RB) (AMBAC)
5.100%, 05/15/03 1,000 1,045
Robbinsdale, North Memorial Medical Center,
Series B (RB) (AMBAC)
5.000%, 05/15/02 1,250 1,294
Rochester, Independent School District #535,
Series A, Callable 02/01/00 @ 100 (GO)
5.600%, 02/01/03 1,500 1,538
Rochester, St. Mary's Hospital,
Escrowed to Maturity (RB)
5.750%, 10/01/07 2,735 2,913
Rosemount, Independent School District,
Series A, Callable 06/01/04 @ 100 (GO)
5.625%, 06/01/07 1,400 1,482
Savage (GO) (FGIC)
5.200%, 02/01/05 1,000 1,051
Savage, Callable 02/01/06 @ 100 (GO) (FGIC)
5.350%, 02/01/07 1,000 1,055
5.500%, 02/01/08 1,000 1,059
MINNESOTA INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
South St. Paul, Housing & Redevelopment
Authority, Single Family Mortgage,
Callable 09/01/05 @ 100 (RB) (FNMA)
5.100%, 09/01/07 $ 1,090 $ 1,120
South St. Paul, Housing & Redevelopment
Authority, Single Family Mortgage,
Callable 09/01/05 @ 100 (RB) (FNMA)
4.500%, 09/01/11 205 204
Southern Municipal Power Agency,
Callable 01/01/03 @ 102 (RB) (FGIC)
5.000%, 01/01/06 2,500 2,572
Southern Municipal Power Agency, Capital
Appreciation (RB) (MBIA)
0.000%, 01/01/20 3,500 1,142
Southern Municipal Power Agency, Power
Supply System, Series A (RB) (FGIC)
5.300%, 01/01/01 1,275 1,315
Southern Municipal Power Agency,
Power Supply System, Series B,
Escrowed To Maturity (RB)
5.300%, 01/01/01 1,000 1,031
Southern Municipal Power Agency, Series A,
Capital Appreciation (RB) (MBIA)
0.000%, 01/01/21 5,000 1,550
Southern Municipal Power Agency,
Series B (RB) (MBIA)
4.850%, 01/01/07 1,875 1,901
St. Cloud, Hospital Facility, St. Cloud
Hospital, Series B, Pre-refunded @ 102
(GO) (AMBAC)
7.000%, 07/01/01 (B) 2,750 3,032
St. Cloud, Law Enforcement Center,
Callable 02/01/01 @ 100 (RB) (MLO)
5.750%, 02/01/02 1,000 1,038
St. Cloud, Series A (GO)
6.000%, 08/01/02 1,000 1,063
St. Cloud, Series B, Callable 08/01/08 @ 100
(GO) (FGIC)
5.000%, 08/01/09 1,780 1,845
St. Louis Park, Health Care Facilities,
Callable 07/01/03 @ 102 (RB) (AMBAC)
4.600%, 07/01/05 6,000 6,075
St. Louis Park, Health Care Facilities,
Methodist Hospital, Series C,
Pre-refunded @ 102 (RB) (AMBAC)
7.250%, 07/01/00 (B) 1,000 1,086
St. Louis Park, Housing & Redevelopment
Authority, Single Family Mortgage,
Callable 04/20/03 @ 100 (RB) (GNMA)
6.500%, 10/20/03 361 381
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
33
MINNESOTA INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
St. Louis Park, Independent School
District #283, Callable 02/01/01 @ 100 (RB)
5.900%, 02/01/04 $ 1,000 $ 1,045
St. Paul, Callable 02/01/01 @ 100 (GO)
5.250%, 02/01/03 1,500 1,538
St. Paul, Housing & Redevelopment Authority,
Callable 03/01/05 @ 102 (RB) (FNMA)
6.125%, 03/01/17 1,110 1,138
St. Paul, Housing & Redevelopment Authority,
Civic Center Project (RB)
4.700%, 11/01/02 1,420 1,448
St. Paul, Housing & Redevelopment Authority,
Downtown & Seventh Place Project,
Escrowed to Maturity (RB) (AMBAC)
4.850%, 09/01/01 2,000 2,048
St. Paul, Housing & Redevelopment Authority,
Downtown & Seventh Place Project,
Escrowed to Maturity,
Callable 09/01/03 @ 101 (RB) (AMBAC)
5.200%, 09/01/04 4,000 4,125
St. Paul, Housing & Redevelopment Authority,
Downtown & Seventh Place Project,
Escrowed to Maturity,
Callable 09/01/04 @ 100 (RB) (AMBAC)
5.350%, 09/01/07 1,500 1,566
St. Paul, Housing & Redevelopment Authority,
St. Paul Heart & Lung Center,
Mandatory Put @ 100 (RB)
(LOC: Norwest Bank Minnesota)
4.700%, 12/01/00 (C) 3,030 3,075
St. Paul, Housing & Redevelopment Authority,
Tax Increment Revenue (RB) (AMBAC)
6.250%, 08/01/05 1,110 1,242
St. Paul, Housing & Redevelopment Authority,
Tax Increment Revenue,
Callable 08/01/2006 @ 102.5 (RB) (AMBAC)
6.400%, 02/01/07 1,195 1,356
St. Paul, Housing & Redevelopment Authority,
Tax Increment Revenue,
Callable 08/01/06 @ 102.5 (AMBAC)
6.400%, 08/01/07 1,205 1,375
6.500%, 02/01/09 1,315 1,512
St. Paul, Independent School District #625,
Callable 02/01/04 @ 100 (GO)
5.800%, 02/01/07 1,000 1,065
St. Paul, Independent School District #625,
Series C (COP) (MLO)
5.850%, 02/01/07 1,000 1,065
MINNESOTA INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
St. Paul, Port Authority Energy Park,
Tax Increment (RB) (FSA)
5.000%, 02/01/08 $ 2,100 $ 2,179
St. Paul, Port Authority Industrial
Development, Escrowed To Maturity (RB)
8.250%, 11/01/99 220 228
St. Paul, Science Museum, Escrowed to
Maturity (COP)
7.500%, 12/15/01 546 588
St. Paul, Sewer Revenue,
Callable 06/01/03 @ 100 (RB) (AMBAC)
5.450%, 12/01/05 5,000 5,231
St. Paul, Sewer Revenue,
Callable 06/01/03 @ 100 (RB) (AMBAC)
5.350%, 12/01/04 3,000 3,139
Stearns County, Housing & Redevelopment
Authority, Callable 02/01/99 @ 102
(RB) (MLO) (AMBAC)
6.750%, 02/01/04 1,665 1,734
Stillwater, Independent School District #834,
Callable 02/01/02 @ 100 (GO) (FGIC)
5.200%, 02/01/03 2,500 2,597
Vadnais Heights, Single Family
Mortgage (RB)
5.500%, 11/01/04 980 1,019
6.000%, 11/01/09 565 601
Washington County, Housing &
Redevelopment Authority, Jail Facility
(RB) (MLO)
5.000%, 02/01/03 2,755 2,865
Washington County, Housing &
Redevelopment Authority, Jail Facility,
Callable 02/01/03 @ 100
(RB) (MBIA) (MLO)
5.400%, 02/01/08 1,580 1,631
Washington County, Housing &
Redevelopment Authority, Jail Facility,
Escrowed To Maturity (RB) (MLO)
6.500%, 02/01/01 1,000 1,064
Washington County, Housing &
Redevelopment Authority, Jail Facility,
Pre-refunded @ 100 (RB) (MLO)
6.800%, 02/01/02 (B) 1,500 1,639
Washington County, Raymie Johnson
Apartments, Series C (GO) (FGIC)
6.000%, 01/01/10 1,340 1,430
West St. Paul, Independent School
District #197, Capital Appreciation
(GO) (MBIA)
0.000%, 02/01/05 2,000 1,478
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
34
MINNESOTA INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000)/Shares Value (000)
- --------------------------------------------------------------------------------
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,
Callable 01/01/06 @ 102 (RB) (AMBAC)
5.500%, 01/01/11 5,000 5,281
Western Minnesota Municipal Power Agency,
Series A, Callable 01/01/06 @ 102
(RB) (AMBAC)
5.500%, 01/01/13 2,000 2,113
Western Minnesota Municipal Power Agency,
Series B (RB) (AMBAC)
6.000%, 01/01/03 1,500 1,624
Willmar, Independent School
District #347 (GO) (SDCP)
4.950%, 02/01/06 1,000 1,023
Willmar, Independent School District #347,
Callable 02/01/06 @ 100 (GO) (SDCP)
5.150%, 02/01/09 1,610 1,648
Willmar, Independent School District #347,
Series C, Callable 02/01/02 @ 100
(GO) (AMBAC)
6.150%, 02/01/09 1,000 1,070
----------
303,938
----------
PUERTO RICO--1.7%
Puerto Rico Common Wealth Infrastructure
Financing Authority, Callable 01/01/08 @ 101
(RB) (AMBAC)
5.000%, 07/01/28 5,310 5,144
Puerto Rico, Housing Finance Agency, Single
Family Mortgage, Portfolio 1,
Series B (RB) (GNMA)
6.800%, 10/15/99 225 234
----------
5,378
----------
VIRGIN ISLANDS--0.1%
Virgin Islands, Special Tax,
Callable 10/01/03 @ 100 (RB)
7.750%, 10/01/06 360 397
----------
TOTAL MUNICIPAL BONDS
(Cost $298,185) 309,713
---------
MONEY MARKET FUND--1.5%
Federated Minnesota Municipal Cash Trust 4,683,450 4,683
----------
TOTAL MONEY MARKET FUND
(Cost $4,683) 4,683
---------
TOTAL INVESTMENTS--99.6%
(Cost $302,868) 314,396
---------
OTHER ASSETS AND LIABILITIES, NET--0.4% 1,289
---------
MINNESOTA INTERMEDIATE TAX FREE FUND (CONCLUDED)
DESCRIPTION Value (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares -- Class Y
($.0001 par value-- 2 billion authorized)
based on 30,507,290 outstanding shares $ 295,651
Portfolio Shares -- Retail Class A
($.0001 par value -- 2 billion authorized)
based on 777,605 outstanding shares 7,686
Distribution in excess of net
investment income (19)
Accumulated net realized gain on investments 839
Net unrealized appreciation of investments 11,528
---------
TOTAL NET ASSETS--100.0% $ 315,685
---------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--CLASS Y $ 10.09
---------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE--RETAIL CLASS A $ 10.12
MAXIMUM SALES CHARGE OF 3.00% (1) 0.31
---------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 10.43
---------
(1) The offer price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 3.00%.
(A) Variable Rate Security--the rate reported on the Statement of Net Assets is
the rate in effect as of March 31, 1998. 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
CGIC--Capital Guaranty Insurance Company
COP--Certificate 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
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>
35
OREGON INTERMEDIATE TAX FREE FUND
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS--97.2%
OREGON--96.4%
Albany, Linn, & Benton Counties,
Callable 05/01/98 @ 100 (GO) (MBIA)
6.300%, 11/01/98 $ 420 $ 421
Baker County, Pollution Control Revenue
(RB) (SBA)
5.850%, 07/01/01 300 305
5.950%, 07/01/02 315 320
6.050%, 07/01/03 335 340
Baker County, Pollution Control Revenue,
Callable 07/01/98 @ 102 (RB)
5.750%, 07/01/00 285 289
Bear Creek Valley, Sanitation Authority,
Callable 04/01/98 @ 100 (GO)
7.000%, 10/01/98 330 335
7.200%, 10/01/00 215 217
Beaverton (GO)
5.750%, 04/01/01 860 902
Beaverton, Limited Tax, Series B,
Callable 04/01/02 @ 100 (GO)
5.000%, 04/01/03 900 927
Beaverton, Pre-refunded @ 100 (GO)
6.500%, 06/01/98 (A) 305 306
Beaverton, Water Revenue,
Callable 06/01/04 @ 101 (RB) (FSA)
6.125%, 06/01/14 1,000 1,089
Chemeketa, Community College,
Callable 06/01/06 @ 100 (GO) (FGIC)
5.650%, 06/01/09 1,000 1,070
Clackamas & Washington Counties, School
District #3, Callable 06/01/07 @ 100
(GO) (FGIC)
5.000%, 06/01/15 1,000 1,000
Clackamas & Washington Counties, School
District #3, Pre-refunded @ 100 (GO)
5.600%, 08/01/02 (A) 1,000 1,059
Clackamas & Washington Counties, School
District #3, Callable 10/01/02 @ 101 (GO)
5.650%, 10/01/05 235 251
Clackamas County, Health Facility Authority,
Series A, Callable 03/01/02 @ 102
(RB) (MBIA)
5.900%, 03/01/03 885 948
Clackamas County, Hospital Revenue,
Sisters Providence, Series A,
Callable 04/01/02 @ 102 (RB)
6.200%, 10/01/02 680 740
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 $ 766
Clackamas County, School District #12,
Callable 06/01/03 @ 101 (GO)
4.650%, 06/01/05 1,025 1,043
Clackamas County, School District #7 (GO)
6.600%, 06/15/99 500 517
5.200%, 06/15/04 600 634
Clackamas County, Service District #1,
Callable 04/01/98 @ 100 (GO)
6.600%, 10/01/99 370 371
Clackamas County, Service District #1, Sewer
Revenue, Callable 10/01/06 @ 100 (RB)
6.200%, 10/01/09 700 780
Columbia River, Peoples Utility District,
Callable 06/01/06 @ 100 (GO) (AMBAC)
4.375%, 06/01/07 1,245 1,240
& Jefferson Counties, School
District #2 Redmond, Callable 06/01/03 @ 100
(GO) (MBIA)
5.400%, 06/01/05 1,000 1,050
Deschutes County, Callable 12/01/06 @ 100
(GO) (MBIA)
5.250%, 12/01/09 1,000 1,049
Douglas County, Hospital Facility Authority,
Catholic Health Series B, (RB) (MBIA)
5.500%, 11/15/04 505 539
Emerald Peoples Utility District (RB) (FGIC)
7.200%, 11/01/02 1,235 1,389
Emerald Peoples Utility District, Series B,
Escrowed To Maturity (RB) (AMBAC)
7.000%, 11/01/99 630 661
Eugene (COP) (MLO) (MBIA)
6.400%, 06/01/98 400 403
Eugene, Electric Utility Revenue, Continuously
Callable @ 100 (RB)
6.650%, 09/01/00 1,200 1,216
Eugene, Oregon Electric Utility Revenue,
Callable 08/01/07 @ 100 (RB) (FSA)
5.000%, 08/01/11 1,305 1,325
Eugene, Oregon Electric Utility Revenue,
Callable 08/01/08 @ 100 (RB) (FSA)
4.800%, 08/01/13 1,190 1,163
Eugene, Public Safety Facilities,
Callable 06/01/06 @ 100 (GO) (FGIC)
5.700%, 06/01/16 1,295 1,363
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
36
OREGON INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Grants Pass, Callable 06/01/98 @ 100
(GO) (AMBAC)
5.850%, 06/01/00 $ 1,000 $ 1,003
Gresham, Sewer Revenue (RB)
4.950%, 06/01/02 615 635
Gresham, Sewer Revenue,
Callable 06/01/02 @ 102 (RB)
5.250%, 06/01/05 500 529
Jackson County, School District #549C
(GO) (FSA)
6.000%, 06/01/05 1,125 1,243
Josephine County, School District #7
(GO) (FGIC)
5.750%, 06/01/06 1,525 1,666
Lane County Community College (GO)
5.000%, 06/01/01 1,000 1,034
Lane County, Metropolitan Waste
Water Service (GO)
5.100%, 09/01/00 660 677
Lincoln City, Callable 07/01/98 @ 100
(GO) (AMBAC)
5.750%, 07/01/01 500 502
Lincoln City, School District (GO) (FGIC)
5.500%, 06/15/04 2,095 2,252
Lincoln City, Series A,
Callable 08/01/98 @ 100 (GO) (AMBAC)
5.000%, 02/01/03 305 314
Lincoln County, School District (GO) (FGIC)
6.000%, 06/15/06 1,055 1,176
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) 660 703
5.800%, 10/01/02 (A) 815 871
Marion County, Office Building Facility,
Callable 11/01/98 @ 100.5 (COP) (MLO)
10.000%, 05/01/05 400 404
Marion County, School District #7-J,
Callable 06/01/04 @ 101 (GO) (FSA)
5.600%, 06/01/06 860 922
Marion County, Solid Waste & Electric
Revenue, Ogden Martin System Project
(RB) (AMBAC)
5.100%, 10/01/02 1,000 1,040
5.500%, 10/01/06 1,400 1,512
Medford, Hospital Facilities Authority
(RB) (MBIA)
6.300%, 12/01/99 400 416
OREGON INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Medford, Hospital Facilities Authority,
Callable 12/01/00 @ 102 (RB) (MBIA)
6.600%, 12/01/03 $ 300 $ 323
Metropolitan Open Spaces Program,
Series A, Callable 09/01/03 @ 102 (GO)
5.000%, 09/01/04 1,275 1,328
Metropolitan Open Spaces Program,
Series C, Callable 09/01/03 @ 102 (GO)
5.250%, 09/01/13 1,000 1,029
Metropolitan Service District, Oregon
Convention Center,
Callable 01/01/00 @ 102 (GO)
6.000%, 07/01/02 1,300 1,363
Metropolitan Service District, Oregon
Convention Center, Series A,
Callable 01/01/00 @ 102 (GO)
5.750%, 07/01/00 1,100 1,143
6.250%, 01/01/13 500 526
Metropolitan Service District, Oregon Waste
Disposal, Continuously Callable (RB)
6.950%, 01/01/00 935 982
Metropolitan Service District, Oregon
Waste Disposal (RB)
6.850%, 07/01/99 540 560
Metropolitan, Washington Park Zoo,
Series A (GO)
5.000%, 01/15/02 1,040 1,074
5.000%, 01/15/03 1,095 1,137
6.000%, 01/15/05 1,215 1,338
Metropolitan, Washington Park Zoo,
Series A, Callable 01/15/07 @ 100 (GO)
5.250%, 01/15/10 1,000 1,041
Morrow County (GO) (MBIA)
5.500%, 06/01/04 795 855
5.500%, 06/01/05 835 899
Multnomah County,
Callable 08/01/08 @ 101 (COP)
4.750%, 08/01/11 2,200 2,164
Multnomah County, Health Facilities Lease,
Series A, Callable 07/01/03 @ 101
(COP) (MLO)
5.100%, 07/01/04 925 962
Multnomah County, Juvenile Justice Project,
Series A, Pre-refunded @ 101 (COP) (MLO)
5.700%, 08/01/02 (A) 675 721
Multnomah County, School District #1,
Callable 06/01/98 @ 100 (GO)
6.300%, 12/15/99 1,025 1,030
6.500%, 12/15/00 1,470 1,478
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
37
OREGON INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Multnomah County, School
District #1-J (GO)
4.500%, 06/01/01 $ 1,000 $ 1,017
4.250%, 06/01/03 1,500 1,513
Multnomah County, School District #1-J,
Callable 06/15/97 @ 100 (GO)
6.700%, 06/15/98 500 503
6.750%, 12/15/03 1,165 1,171
Multnomah County, School District #1-J,
Series A, Continuously Callable @ 100 (COP) (MLO)
6.500%, 12/15/98 1,225 1,228
Multnomah County, School District #1-J,
Series B, Continuously
Callable @ 100 (COP) (MLO)
6.600%, 12/15/98 1,000 1,003
Multnomah County, School District #3,
Callable 12/01/05 @ 100 (GO) (FGIC)
5.600%, 12/01/07 780 831
Multnomah County, School District #4 (GO)
5.500%, 01/01/02 910 960
Multnomah County, School District #4,
Callable 01/01/02 @ 100 (GO)
5.800%, 01/01/04 1,400 1,479
Multnomah County, School District #40 (GO)
5.250%, 06/01/04 1,000 1,054
Multnomah County, School District #7
(GO) (AMBAC)
5.875%, 06/01/02 1,000 1,071
Multnomah County, School District #7
(GO) (AMBAC)
5.500%, 06/01/06 1,000 1,075
Multnomah County, University of Portland
Educational Facilities,
Callable 04/01/07 @ 102 (RB) (AMBAC)
5.750%, 04/01/10 2,245 2,447
Northern Wasco County, Hydroelectric Utility,
Mcnary Dam Fishway Project,
Callable 12/01/03 @ 102 (RB)
4.750%, 12/01/06 470 478
Oregon State (GO)
6.000%, 08/01/02 2,100 2,260
6.000%, 02/01/03 1,000 1,079
Oregon State, Administrative Services,
Callable 11/01/05 @ 101
(COP) (MLO) (MBIA)
5.000%, 11/01/06 1,350 1,406
Oregon State, Alternative Energy, Private Act,
Callable 07/01/04 @ 100 (GO)
5.300%, 07/01/05 900 948
OREGON INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Oregon State, Board of Higher Education,
Series B, Callable 10/15/02 @ 100 (GO)
6.250%, 10/15/12 $ 1,375 $ 1,482
Oregon State, Department Administrative
Services, Callable 11/01/07 @ 101
(COP) (AMBAC)
5.000%, 11/01/11 840 850
Oregon State, Department of Administrative
Services, Series C (COP) (MLO) (MBIA)
4.800%, 05/01/02 1,145 1,172
Oregon State, Department of Administrative
Services, Series C, Callable 05/01/06 @ 101
(COP) (MLO) (MBIA)
5.750%, 05/01/07 1,635 1,786
Oregon State, Department of General Services,
Series E (COP) (MLO) (AMBAC)
6.800%, 09/01/99 1,050 1,093
Oregon State, Department of General Services,
Series F (COP) (MLO) (AMBAC)
6.800%, 09/01/99 1,000 1,042
Oregon State, Department of Transportation,
Regional Light Rail Fund,
Callable 06/01/04 @ 102 (RB) (MBIA)
6.000%, 06/01/05 2,000 2,205
Oregon State, Economic Development
Department, Callable 01/01/02 @ 102 (RB)
4.850%, 01/01/04 555 563
Oregon State, Economic Development
Department, Series A,
Callable 01/01/06 @ 102 (RB) (MBIA)
5.000%, 01/01/11 500 508
Oregon State, Equipment Finance Program,
Series I (COP) (MLO) (MBIA)
5.050%, 11/01/99 735 750
Oregon State, Fair & Exposition Center,
Callable 10/01/01 @ 103 (RB)
5.400%, 10/01/06 1,010 1,058
Oregon State, Health Housing Educational &
Cultural Facilities (RB) (MBIA)
5.250%, 10/01/02 550 573
Oregon State, Health Housing Educational &
Cultural Facilities, George Fox University,
Series A, Callable 03/01/07 @ 102 (RB)
5.400%, 03/01/09 395 417
Oregon State, Health Housing Educational &
Cultural Facilities, Lewis & Clark College
(RB) (MBIA)
5.300%, 10/01/03 630 661
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
38
OREGON INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Oregon State, Health Housing Educational &
Cultural Facilities, George Fox University,
Series A, Callable 03/01/07 @ 102 (RB)
5.450%, 03/01/10 $ 415 $ 436
Oregon State, Health Housing, Reed College,
Series A, Callable 07/01/06 @ 102 (RB)
5.375%, 07/01/15 2,000 2,037
Oregon State, Health Sciences, Capital
Appreciation (RB) (MBIA)
0.000%, 07/01/21 9,750 2,974
Oregon State, Housing & Community
Services (COP) (MLO) (FHA)
5.900%, 07/01/99 615 627
Oregon State, Housing & Community
Services, Callable 07/01/03 @ 102 (RB)
5.750%, 07/01/12 1,500 1,545
Oregon State, Housing & Community
Services, Series A,
Callable 07/01/04 @ 102 (RB)
6.400%, 07/01/18 1,280 1,355
Oregon State, Housing & Community
Services, Single Family Mortgages,
Callable 07/01/01 @ 102 (GO)
6.400%, 07/01/05 140 148
Oregon State, Housing & Community
Services, Single Family Mortgages,
Series A, Callable 07/01/03 @ 102 (RB)
4.900%, 07/01/05 1,075 1,096
Oregon State, Housing & Community
Services, Single Family Mortgages,
Series A, Callable 07/01/06 @ 102 (RB)
6.000%, 07/01/16 1,200 1,277
Oregon State, Housing & Community
Services, Single Family Mortgages,
Series B, Callable 07/01/03 @ 102 (RB)
5.100%, 07/01/07 465 482
Oregon State, Pollution Control,
Callable 11/01/07 @ 100 (GO)
4.875%, 11/01/11 455 457
Oregon State, Pollution Control, Series C,
Callable 06/01/03 @ 100 (GO)
5.625%, 06/01/13 970 982
Oregon State, Veterans Welfare (GO)
7.800%, 01/01/99 350 361
Polk, Marion & Benton Counties, School
District #13-J (GO) (FGIC)
5.500%, 12/01/03 955 1,027
Polk, Marion & Benton Counties, School District
#13-J, Callable 12/01/04 @ 101 (GO) (FGIC)
5.500%, 12/01/05 570 615
OREGON INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Port Morrow, Pollution Control,
Pre-refunded @ 100 (RB)
6.375%, 04/01/02 (A) $ 1,050 $ 1,135
Port Portland, International Airport,
Series 7A (RB) (MBIA)
6.125%, 07/01/00 800 838
Port Portland, International Airport,
Series 7A (RB) (MBIA)
6.200%, 07/01/01 500 533
6.500%, 07/01/04 500 538
Port Portland, International Airport,
Series 9A, Callable 07/01/01 @ 102
(RB) (FGIC)
5.400%, 07/01/04 1,775 1,868
Port Portland, Series A (GO)
4.500%, 03/01/06 1,000 1,009
Port Portland, Unlimited Tax, Series A (GO)
4.300%, 03/01/03 1,005 1,009
Portland, Community College District,
Callable 07/01/07 @ 101 (GO) (AMBAC)
5.500%, 07/01/10 2,850 3,039
Portland, Community College District,
Series A, Callable 07/01/02 @ 100 (GO)
6.000%, 07/01/12 1,500 1,607
Portland, Housing Authority, Riverwood
Project, Callable 01/01/06 @ 100 (RB)
6.000%, 01/01/11 1,170 1,255
Portland, Pre-refunded @ 102 (GO)
6.600%, 10/01/98 (A) 565 584
Portland, Series C,
Callable 06/01/98 @ 100 (GO)
5.500%, 12/01/00 250 251
Portland, Sewer Systems Revenue,
Callable 06/01/07 @ 100 (RB) (FGIC)
5.000%, 06/01/09 2,250 2,318
Portland, Sewer Systems Revenue,
Pre-refunded @ 101 (RB)
6.150%, 06/01/04 (A) 1,000 1,110
Portland, Sewer Systems Revenue,
Series A (RB)
5.550%, 06/01/04 1,085 1,161
Portland, Sewer Systems Revenue,
Series B, Callable 04/01/02 @ 102 (RB)
5.500%, 04/01/04 600 638
Portland, Sewer Systems,
Callable 06/01/07 @ 100 (RB) (FGIC)
5.000%, 06/01/15 1,000 991
Portland, Sewer Systems,
Callable 06/01/07 @ 100 (RB) (FGIC)
5.000%, 06/01/08 2,000 2,080
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
39
OREGON INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Salem (GO)
6.750%, 11/01/98 $ 600 $ 611
Salem, Education Facilities, Willamette
University (RB)
5.500%, 04/01/04 500 533
Salem, Education Facilities, Willamette
University, Callable 04/01/04 @ 101 (RB)
5.700%, 04/01/05 500 540
Salem, Water & Sewer
Callable 06/01/06 @ 100 (RB) (MBIA)
5.500%, 06/01/11 1,000 1,054
Salem, Series A,
Callable 01/01/01 @ 101 (GO)
5.600%, 01/01/03 1,410 1,463
Salem, Water & Sewer Revenue
(RB) (MBIA)
6.000%, 06/01/06 1,135 1,261
Tri-County Metropolitan, Transit Improvements,
Callable 07/01/02 @ 101 (GO)
5.700%, 07/01/04 1,450 1,552
Tri-County Metropolitan, Transportation
District, Series A,
Callable 07/01/02 @ 101 (GO)
5.600%, 07/01/03 2,000 2,105
Tri-County Metropolitan, Transportation
District, Series A,
Callable 08/01/02 @ 101 (RB)
5.450%, 08/01/04 1,000 1,059
Tri-County Metropolitan, Transportation
District, Series A,
Callable 07/01/02 @ 101 (GO)
5.800%, 07/01/05 1,310 1,403
Tri-County Service District (GO)
5.000%, 09/01/02 1,570 1,633
Tualatin Valley Water District, Wolf Creek,
Series A, Callable 12/01/03 @ 100 (GO)
4.700%, 12/01/04 1,140 1,181
Umatilla County, School District (GO) (FSA)
4.450%, 12/01/12 1,075 1,033
Washington & Clackamas Counties, School
District #23-J (GO) (FGIC)
5.750%, 06/01/06 1,055 1,157
Washington County (GO)
5.850%, 12/01/01 685 729
Washington County, Criminal Justice Facilities,
Callable 12/01/04 @ 100 (GO)
5.625%, 12/01/05 850 917
OREGON INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Washington County, Criminal Justice
Facilities, Callable 12/01/04 @ 100 (GO)
6.000%, 12/01/13 $ 1,000 $ 1,100
Washington County, School District #15,
Callable 06/01/04 @ 101 (GO) (FGIC)
5.800%, 06/01/06 575 629
Washington County, School District #3
(GO) (MBIA)
5.750%, 11/01/04 800 876
Washington County, School
District #48-J (GO)
6.700%, 06/01/98 320 322
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%, 06/01/02 780 806
Washington County, School District #48-J,
Series C, Pre-refunded @ 100 (GO)
5.300%, 09/01/99 (A) 830 848
Washington County, School District #88-J,
Callable 06/01/05 @ 100 (GO) (FSA)
5.700%, 06/01/06 1,000 1,084
Washington County, School District
Number 1J (GO)
5.000%, 11/01/13 1,375 1,411
5.000%, 11/01/14 1,000 1,020
Washington County, Unified Sewerage
Agency (RB) (FGIC)
5.750%, 10/01/08 1,000 1,106
Washington County, Unified Sewerage
Agency, Callable 10/01/06 @ 101 (RB) (FGIC)
5.200%, 10/01/09 1,300 1,363
Washington County, Unified Sewerage
Agency, Series 1 (RB) (AMBAC)
5.700%, 10/01/04 1,250 1,355
Washington County, Unified Sewerage
Agency, Series 1, Pre-refunded @ 100
(RB) (AMBAC)
5.800%, 10/01/04 (A) 2,000 2,180
Wilsonville, Callable 07/01/98 @ 100 (GO)
6.900%, 01/01/99 175 175
7.000%, 01/01/00 190 190
7.100%, 01/01/01 200 200
7.200%, 01/01/02 215 215
7.300%, 01/01/03 235 236
Wolf Creek, Highway Water District,
Pre-refunded @ 100 (GO)
6.750%, 12/01/98 (A) 410 418
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
40
OREGON INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000)/Shares Value (000)
- --------------------------------------------------------------------------------
Yamhill County, School District #29-J,
Callable 06/01/04 @ 101 (GO) (FSA)
5.600%, 06/01/06 $ 630 $ 673
Yamhill County, School District #29-J,
Pre-refunded @ 100 (GO)
6.500%, 02/01/99 (A) 465 476
Yamhill County, School District #40
(GO) (FGIC)
6.000%, 06/01/08 600 674
----------
173,497
----------
PUERTO RICO--0.8%
Commonwealth of Puerto Rico (GO) (MBIA)
6.250%, 07/01/08 1,250 1,422
----------
TOTAL MUNICIPAL BONDS
(Cost $168,883) 174,919
---------
MONEY MARKET FUND--2.0%
Federated Tax Free Money Market 3,627,911 3,628
----------
TOTAL MONEY MARKET FUND
(Cost $3,628) 3,628
---------
TOTAL INVESTMENTS--99.2%
(Cost $172,511) 178,547
---------
OTHER ASSETS AND LIABILITIES, NET--0.8% 1,390
---------
OREGON INTERMEDIATE TAX FREE FUND (CONCLUDED)
DESCRIPTION Value (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares -- Class Y
($.0001 par value -- 2 billion authorized)
based on 17,893,204 outstanding shares $ 173,536
Undistributed net investment income 10
Accumulated net realized gain on investments 355
Net unrealized appreciation of investments 6,036
---------
TOTAL NET ASSETS--100.0% $ 179,937
---------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--CLASS Y $ 10.06
---------
(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
CGIC--Capital Guaranty Insurance Company
COP--Certificate 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
NN--Northwestern National
RB--Revenue Bond
SBA--Small Business Administration
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
41
INTERMEDIATE TAX FREE FUND
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS--97.9%
ALABAMA--1.0%
Alabama State, Docks Department Revenue
Authority (RB) (MBIA)
5.250%, 10/01/10 (D) $ 3,000 $ 3,064
Jefferson County, Series A (RB) (FGIC)
5.375%, 02/01/06 1,500 1,594
----------
4,658
----------
ALASKA--3.1%
Alaska State Housing Finance Authority
(RB) (MBIA)
4.950%, 12/01/02 1,000 1,029
Alaska State Housing Finance Authority (RB)
5.900%, 12/01/04 700 742
Alaska State Housing Finance Authority
(RB) (MBIA)
5.350%, 06/01/06 1,000 1,047
Alaska State Housing Finance Authority,
Callable 06/01/04 @ 102 (RB)
5.400%, 12/01/23 3,000 3,000
Alaska State Housing Finance Authority,
Callable 12/01/05 @ 102 (RB) (MBIA)
5.400%, 12/01/08 2,000 2,092
Alaska State Industrial Development Authority,
Callable 04/01/03 @ 102 (RB)
5.950%, 04/01/06 955 1,027
Anchorage (GO) (FGIC)
6.000%, 10/01/06 2,250 2,489
Anchorage, Electric Utility (RB) (MBIA)
5.500%, 12/01/02 700 738
Anchorage, Electric Utility,
Callable 06/01/99 @ 102 (RB) (MBIA)
7.125%, 06/01/06 1,000 1,054
Anchorage, Port & Terminal Facilities
(RB) (MBIA)
6.000%, 02/01/01 990 1,038
----------
14,256
----------
ARIZONA--5.4%
Arizona State, Educational Loan Marketing
(RB) (MBIA)
6.850%, 09/01/99 500 519
Arizona State, Transportation Board Highway,
Pre-refunded @ 101 (RB)
6.900%, 07/01/00 (B) 300 321
Maricopa County, School District #11,
Series A, Callable 07/01/07 @ 101
(GO) (AMBAC)
5.000%, 07/01/10 3,000 3,082
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 $ 1,046
Maricopa County, School District #41,
Pre-refunded @ 101 (GO) (FGIC)
7.000%, 07/01/99 (B) 1,000 1,049
Maricopa County, School District #80,
Chandler Project, Series D (GO) (AMBAC)
4.600%, 07/01/05 4,000 4,055
Maricopa County, School District #97,
Deer Valley Project, Series D (GO) (FGIC)
4.900%, 07/01/09 3,000 3,041
Maricopa County, School District (GO) (FSA)
5.250%, 07/01/04 4,000 4,215
Maricopa County, Unified School
District #69 (GO) (MBIA)
5.300%, 07/01/11 1,000 1,059
Phoenix, Callable 07/01/07 @ 102 (GO)
5.000%, 07/01/09 1,300 1,349
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 1,864
University of Arizona,
Pre-refunded @ 102 (RB)
6.900%, 06/01/16 (B) 2,000 2,152
----------
24,608
----------
CALIFORNIA--5.2%
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 1,059
California State, Educational Facilities
Authority, Series N,
Callable 12/01/07 @ 101 (RB)
5.350%, 06/01/27 3,000 3,026
California State, Health Facilities Authority,
Callable 10/01/98 @ 102 (RB) (CMI)
7.250%, 10/01/99 500 518
California State, Public Improvements
(GO) (AMBAC)
8.000%, 05/01/03 4,000 4,700
Fresno, Unified School District,
Callable 02/01/13 @ 103 (GO) (MBIA)
6.150%, 08/01/13 1,000 1,137
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
42
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Mountain View, Los Altos School District,
Series B, Callable 05/01/07 @ 102 (GO)
6.500%, 05/01/17 $ 3,000 $ 3,420
Orange County, Transportation Authority,
Callable 02/15/02 @ 102 (RB)
5.750%, 02/15/04 1,000 1,067
Orange County, Transportation Authority,
Callable 02/15/02 @ 102 (RB)
5.700%, 02/15/03 200 213
Rio Linda, Unified School District,
Callable 08/01/08 @ 100 (GO) (FSA)
5.200%, 08/01/11 1,000 1,039
San Joaquin Hills, Transportation
Corridor (RB) (MBIA)
0.000%, 01/15/26 10,000 2,312
San Jose, Airport Revenue,
Callable 03/01/03 @ 102 (RB) (MBIA)
6.100%, 03/01/06 1,000 1,096
Tri-City Hospital District,
Series B (RB) (MBIA)
5.750%, 02/15/03 2,870 3,060
----------
23,732
----------
COLORADO--3.9%
Arapahoe County, Greenwood Metropolitan
District, Callable 12/01/02 @ 100 (RB) (FSA)
7.300%, 12/01/06 2,000 2,252
Arapahoe County, Greenwood Metropolitan
District, Callable 12/01/02 @ 100
(RB) (MBIA)
7.250%, 12/01/06 1,500 1,687
Boulder County, Open Space Capital,
Callable 12/15/07 @ 101 (RB)
5.250%, 12/15/09 3,000 3,184
Boulder, Larimer, & Weld Counties,
Vrain Valley School District #R-1,
Callable 12/15/04 @ 100 (GO) (MBIA)
5.600%, 12/15/05 1,000 1,065
Colorado State, Housing Finance Authority,
Series A-2, Callable 05/01/06 @ 105 (RB)
7.150%, 11/01/14 1,495 1,695
Colorado State, Housing Finance Authority,
Single Family Mortgages,
Callable 08/01/99 @ 102 (RB) (FHA/VA)
7.400%, 08/01/09 505 523
E-470 Public Highway Authority, Series B,
Capital Appreciation (RB) (MBIA)
0.000%, 09/01/13 10,000 4,587
Greeley, Sales & Use Tax,
Callable 02/01/98 @ 100 (RB) (MBIA)
6.000%, 08/01/99 400 403
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Jefferson County, Callable 12/01/04 @ 100
(COP) (MLO) (MBIA)
6.650%, 12/01/08 $ 500 $ 556
Summit County, School District #1,
Capital Appreciation (GO) (FGIC)
0.000%, 12/01/03 1,325 1,043
University of Colorado,
Callable 05/29/98 @ 100 (RB)
7.625%, 06/01/06 25 25
Westminster, Water & Waste Water Utility
Improvements, Callable 12/01/04 @ 100
(RB) (AMBAC)
6.000%, 12/01/09 1,000 1,080
----------
18,100
----------
CONNECTICUT--0.9%
Connecticut State, Special Tax Obligation,
Transportation Revenue, Series A,
Callable 09/01/03 @ 102 (GO)
5.125%, 09/01/05 4,000 4,190
----------
DELAWARE--1.2%
Delaware State (GO)
6.250%, 04/01/02 1,000 1,076
Delaware State,
Callable 04/01/01 @ 102 (GO)
6.350%, 04/01/03 1,000 1,079
Delaware State, Transportation System
Authority, Callable 07/01/98 @ 101.5 (RB)
7.500%, 07/01/02 1,000 1,023
New Castle County,
Callable 10/01/03 @ 102 (GO)
5.300%, 10/01/05 2,000 2,122
----------
5,300
----------
DISTRICT OF COLUMBIA--0.7%
District of Columbia, Series A,
Callable 06/01/00 @ 102 (GO) (MBIA)
6.300%, 06/01/01 500 531
District of Columbia, Georgetown University
Project, Series A,
Callable 04/01/99 @ 102 (RB)
7.375%, 04/01/08 2,525 2,654
----------
3,185
----------
FLORIDA--0.9%
Florida State, General Services Revenue,
Callable 07/01/07 @ 101 (RB) (AMBAC)
5.000%, 07/01/10 3,850 3,922
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
43
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
GEORGIA--0.1%
De Kalb County, Single Family Mortgages,
Callable 08/01/03 @ 100
(RB) (AMT) (GNMA)
7.400%, 02/01/14 $ 270 $ 286
----------
HAWAII--1.6%
Hawaii County, Public Improvements,
Pre-refunded @ 101 (RB) (FGIC)
7.100%, 06/01/00 (B) 1,000 1,074
Hawaii State (GO) (FGIC)
6.000%, 03/01/05 3,000 3,292
Hawaii State, Public Improvements,
Pre-refunded @ 100 (GO)
6.900%, 06/01/00 (B) 1,000 1,060
Hawaii State, Series B (GO)
5.750%, 03/01/00 1,000 1,032
Honolulu, City & County Public
Improvements, Pre-refunded @ 101 (GO)
6.950%, 06/01/00 (B) 1,000 1,071
----------
7,529
----------
IDAHO--1.4%
Ada & Canyon Counties, Joint School
District #2, Callable 07/30/07 @ 100 (GO)
5.500%, 07/30/11 1,000 1,061
Ada & Canyon Counties, Joint School
District #2, Callable 07/30/07 @ 100 (GO)
5.500%, 07/30/10 1,000 1,062
Boise, State University Refunding &
Improvement, Callable 04/01/08 @ 101
(RB) (FSA)
5.000%, 04/01/12 (D) 1,225 1,227
Idaho State, Student Loan Revenue,
Series C (RB)
5.000%, 04/01/01 1,000 1,000
5.000%, 10/01/01 2,000 1,997
----------
6,347
----------
ILLINOIS--6.1%
Chicago, Illinois Water Revenue Capital
Appreciation (RB) (FGIC)
0.000%, 11/01/08 5,150 3,122
0.000%, 11/01/09 6,450 3,676
0.000%, 11/01/10 3,980 2,134
Chicago, Single Family Mortgages, Series A,
Callable 03/01/06 @ 103 (RB) (AMT)(GNMA/FNMA/FHLMC)
5.250%, 03/01/13 965 983
Cook County (RB) (MBIA)
7.250%, 11/01/07 2,000 2,407
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
De Kalb, Single Family Mortgages,
Series A (RB) (AMT) (GNMA)
7.000%, 12/01/01 $ 500 $ 509
Du Page County, Illinois Forest Preservation,
Callable 05/26/98 @ 102 (RB)
7.400%, 11/01/98 1,900 1,943
Illinois Educational Facilities Authority (RB)
4.700%, 03/01/30 4,500 4,494
Illinois State (GO)
5.000%, 06/01/03 1,000 1,032
Illinois State, Health Facilities Authority,
Callable 05/26/98 @ 101 (RB) (MBIA)
7.400%, 08/15/98 96 97
Illinois State, Health Facilities Authority,
Escrowed To Maturity (RB) (MBIA)
7.400%, 08/15/98 102 103
Illinois State, Sales Tax, Series S (RB)
5.000%, 06/15/09 2,500 2,578
5.100%, 06/15/10 2,000 2,067
Metropolitan Pier & Exposition Authority,
Series A (RB) (MBIA)
0.000%, 12/15/22 10,000 2,725
----------
27,870
----------
INDIANA--0.4%
Indiana State, Housing Finance Authority,
Callable 05/26/98 @ 102.5 (RB) (FPI)
7.800%, 01/01/99 415 421
Indiana State, Housing Finance Authority,
Callable 07/01/05 @ 102 (RB)
6.150%, 07/01/17 1,465 1,547
----------
1,968
----------
IOWA--0.2%
Des Moines, Series C,
Callable 06/01/99 @ 100 (GO)
6.900%, 06/01/00 500 517
Iowa State, Finance Authority, Single
Family Mortgages, Series F (RB) (AMBAC)
5.350%, 07/01/99 370 376
----------
893
----------
KANSAS--1.1%
Kansas State, Development Finance Authority
(RB) (MBIA)
5.000%, 11/15/01 2,270 2,335
Sedgwick & Shawnee Counties, Single
Family Mortgage Revenue,
Series A-2 (RB) (GNMA)
5.500%, 06/01/29 2,500 2,800
----------
5,135
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
44
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
LOUISIANA--0.6%
Jefferson County (GO) (FGIC)
6.150%, 09/01/05 $ 2,500 $ 2,719
----------
MAINE--0.3%
Maine State, Housing Authority, Series A,
Callable 02/01/04 @ 102 (RB)
5.650%, 11/15/20 1,000 1,029
Maine State, Municipal Bond Bank, Series A,
Pre-refunded @ 101 (RB)
7.125%, 11/01/98 (B) 400 412
----------
1,441
----------
MARYLAND--1.8%
Maryland State & Local Facilities Project,
Series Z, Callable 06/01/06 @ 100 (GO)
5.400%, 06/01/07 1,000 1,057
Maryland State Health & Higher Educational,
Helix Health Hospital, Series A,
LOC: Nationsbank (RB)
3.650%, 07/01/26 (A) 3,000 3,000
Montgomery County,
Callable 04/01/06 @ 102 (GO)
5.125%, 04/01/08 3,000 3,157
Washington Suburban Sanitation District,
Pre-refunded @ 102 (RB)
6.900%, 06/01/00 (B) 1,000 1,077
----------
8,291
----------
MASSACHUSETTS--1.2%
Massachusetts State, Health & Educational
Facilities Authority, Series A (RB) (MBIA)
5.100%, 07/01/10 3,000 3,052
Massachusetts State, Housing
Finance Agency (RB)
5.350%, 12/01/02 500 521
Massachusetts State, Housing Finance
Agency, Series A (RB)
6.300%, 10/01/13 1,000 1,059
Massachusetts State, Water Pollution
Control Project (RB)
5.000%, 02/01/02 1,000 1,034
----------
5,666
----------
MICHIGAN--2.6%
Jackson County, Hospital Finance Authority,
Series A (RB) (AMBAC)
5.000%, 06/01/09 1,000 1,026
Michigan State, Building Authority,
Callable 10/01/06 @ 102 (RB) (AMBAC)
5.050%, 10/01/09 585 597
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Michigan State, Housing Development
Authority, Callable 07/15/04 @ 102
(RB) (FNMA)
5.125%, 07/15/08 $ 1,980 $ 2,025
Oakland University, Callable 05/15/07 @ 100
(RB) (MBIA)
5.600%, 05/15/10 1,000 1,062
South Lyon, Community Schools,
Callable 05/01/08 @ 100 (GO) (FGIC)
4.750%, 05/01/23 2,000 1,865
Troy, School District (GO)
4.650%, 05/01/06 3,300 3,362
Walled Lake, Consolidated School District,
School Improvements Project,
Callable 05/01/07 @ 100 (GO) (MBIA)
5.300%, 05/01/08 2,000 2,100
----------
12,037
----------
MINNESOTA--3.9%
Bloomington, Mall of America Project,
Series A, Callable 02/01/04 @ 100
(RB) (FSA)
5.450%, 02/01/09 1,000 1,060
Dakota County, Housing & Redevelopment
Authority (RB) (MLO)
4.650%, 02/01/00 1,000 1,010
Lakeville, Independent School District #194,
Series A, Callable 02/01/08 @ 100 (GO)
5.125%, 02/01/22 5,000 4,975
Minneapolis & St. Paul Minnesota, Housing &
Redevelopment Authority,
Callable 08/15/00 @ 102 (RB) (MBIA)
7.400%, 08/15/05 600 653
Minneapolis, Childrens Medical Center,
Series C, Pre-refunded @ 102 (RB)
7.000%, 12/01/20 (B) 1,000 1,102
Minneapolis, Hennepin Avenue Project,
Series C (GO)
6.200%, 03/01/02 800 860
Northern Minnesota Municipal Power Agency,
Series A, Callable 01/01/03 @ 102
(RB) (AMBAC)
5.700%, 01/01/05 2,500 2,700
St. Paul, Housing & Redevelopment Authority,
Callable 08/01/06 @ 102.5 (RB) (AMBAC)
6.450%, 02/01/08 1,240 1,428
6.450%, 08/01/08 1,275 1,468
Stillwater, Independent School District #834,
Callable 02/01/99 @ 100 (GO) (FGIC)
6.750%, 02/01/09 2,700 2,757
----------
18,013
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
45
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
MISSISSIPPI--0.5%
Mississippi State, Capital Improvements,
Series B (GO)
6.000%, 08/01/01 $ 2,000 $ 2,120
----------
MISSOURI--0.7%
Kansas City, School District
(RB) (MLO) (FGIC)
6.300%, 02/01/00 1,000 1,041
Kansas City, School District,
Callable 02/01/01 @ 102
(RB) (MLO) (FGIC)
6.400%, 02/01/02 2,000 2,155
----------
3,196
----------
NEBRASKA--7.4%
Buffalo County, Hospital Authority #1,
Escrowed To Maturity (RB)
6.375%, 11/01/03 140 145
Douglas County, Hospital Authority #1
(RB) (AMBAC)
4.600%, 09/01/04 1,255 1,271
4.800%, 09/01/08 1,500 1,522
4.900%, 09/01/09 1,500 1,521
Douglas County, Hospital Authority #2,
Pre-refunded @ 102 (RB)
7.250%, 11/01/01 (B) 5,000 5,587
Douglas County, School District #17 Millard,
Series A, Callable 05/15/99 @ 101
(GO) (MBIA)
5.050%, 05/15/01 750 766
Douglas County, School District #17 Millard,
Series B, Callable 05/15/99 @ 101
(GO) (MBIA)
5.000%, 05/15/00 500 511
Grand Island, Electrical Systems Project,
Callable 09/01/99 @ 101 (RB)
6.050%, 09/01/01 1,000 1,039
Lincoln, Power Supply Facilities,
Series A (RB)
5.000%, 09/01/00 500 511
Lincoln, Waterworks Project (RB)
4.900%, 08/15/03 1,000 1,039
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%, 04/01/03 750 796
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Nebraska State, Educational Finance
Authority, Creighton University Project,
Callable 01/01/06 @ 101 (RB) (AMBAC)
5.600%, 01/01/07 $ 2,500 $ 2,700
Nebraska State, Industrial Finance Authority,
Catholic Health Initiatives, Series A,
Callable 12/01/07 @ 101 (RB)
5.000%, 12/01/09 3,000 3,060
Nebraska State, Investment Finance Authority,
Health Systems Project (RB) (MBIA)
6.750%, 03/01/01 2,000 2,140
Nebraska State, Public Power District,
Callable 01/01/03 @ 102 (RB) (MBIA)
4.900%, 01/01/04 1,500 1,547
Nebraska State, Public Power District,
Nuclear Facility Project,
Callable 01/01/03 @ 102 (RB) (MBIA)
5.200%, 07/01/00 1,000 1,025
Nebraska State, Public Power District,
Series A (RB)
5.500%, 01/01/01 500 517
Nebraska State, Public Power District,
Series A (RB) (MBIA)
6.000%, 01/01/04 1,385 1,506
Omaha, Callable 09/01/01 @ 102 (GO)
5.900%, 09/01/02 500 537
Omaha, Northwest Library Facilities,
Callable 08/15/07 @ 102 (RB)
5.250%, 08/15/12 2,475 2,562
Omaha, Public Power District, Series B (RB)
5.000%, 02/01/03 1,000 1,035
Omaha, Sewer Systems (RB)
5.200%, 01/15/02 1,000 1,041
Ravenna, Industrial Development (RB)
5.000%, 09/01/00 810 830
----------
33,993
----------
NEVADA--1.0%
Clark County, School District, Building &
Renovation, Series B,
Callable 06/15/07 @ 101 (GO) (FGIC)
5.750%, 06/15/08 1,000 1,086
Nevada State, Housing Division, Single
Family Program, Series R (RB) (FHA/VA)
4.600%, 04/01/98 565 565
Nevada State, Municipal Bond Bank,
Escrowed To Maturity (RB)
6.100%, 07/01/02 1,000 1,071
Nevada State, Series B,
Callable 05/01/01 @ 101 (GO)
6.000%, 05/01/02 900 954
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
46
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Washoe County, School District,
Callable 08/01/02 @ 101 (GO) (MBIA)
5.700%, 08/01/03 $ 1,000 $ 1,066
----------
4,742
----------
NEW JERSEY--2.0%
New Jersey State (GO)
5.000%, 07/15/01 3,000 3,094
5.300%, 02/15/02 1,000 1,043
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%, 10/01/09 110 111
New Jersey State, Transportation Trust Fund
Authority, Series B (RB) (MBIA)
5.000%, 06/15/04 2,830 2,943
New Jersey State, Turnpike Authority,
Series A, Callable 01/01/01 @ 102
(RB) (AMBAC)
6.750%, 01/01/08 1,000 1,074
----------
9,336
----------
NEW MEXICO--0.5%
Farmington, Utility Systems,
Escrowed to Maturity (RB)
10.000%, 01/01/02 450 498
New Mexico State,
Callable 09/01/00 @ 100 (GO)
5.250%, 09/01/04 1,000 1,024
New Mexico State, Mortgage Finance
Authority (RB) (GNMA/FNMA)
5.650%, 07/01/08 620 656
----------
2,178
----------
NEW YORK--2.5%
Hempstead Town, Industrial Development
Agency, Callable 12/01/06 @ 102 (RB)
5.000%, 12/01/08 2,000 2,060
Middletown, School District (GO) (FGIC)
5.000%, 11/01/05 3,000 3,128
Nassau County, General Improvements,
Series V (GO) (AMBAC)
5.150%, 03/01/04 2,000 2,090
New York State, Dorm Authority-Manhattan
College, Callable 07/01/02 @ 102 (RB)
6.100%, 07/01/04 1,000 1,075
New York State, Environmental Facilities,
Pollution Control Project,
Callable 11/15/04 @ 102 (RB)
6.400%, 05/15/06 1,250 1,422
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
New York, Municipal Assistance
Corporation, Series I (RB)
6.250%, 07/01/05 $ 1,500 $ 1,671
----------
11,446
----------
NORTH CAROLINA--0.9%
Wake County, Callable 03/1/08 @ 101 (GO)
4.500%, 03/01/10 4,140 4,068
----------
NORTH DAKOTA--0.7%
Grand Forks, United Hospital Obligated
Group (RB) (MBIA)
6.000%, 12/01/00 1,000 1,048
North Dakota State, Building Authority,
Pre-refunded @ 100 (RB) (MLO) (AMBAC)
7.400%, 06/01/10 (B) 1,000 1,069
North Dakota State, Housing Finance
Agency, Single Family Mortgages,
Callable 01/01/04 @ 100 (RB) (FHA/FMHA)
6.100%, 07/01/16 10 10
North Dakota State, Industrial Commission,
Lignite Program, Series A (RB)
5.750%, 11/15/05 1,000 1,079
North Dakota State, Real Estate, Series A,
Callable 06/08/98 @ 101 (GO)
7.000%, 09/01/98 85 86
North Dakota State, Student Loans (RB)
6.100%, 07/01/01 25 26
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 05/26/98 @ 100 (RB)
7.000%, 12/31/10 50 50
----------
3,394
----------
OHIO--3.1%
Butler County, Transportation Improvement,
Series A (RB) (FSA)
5.500%, 04/01/08 3,000 3,221
Lorain County, Hospital Revenue,
Callable 09/01/07 @ 102 (RB) (MBIA)
5.375%, 09/01/09 1,000 1,050
Mahoning County, Hospital Facilities
Revenue, Series A (RB) (MBIA)
4.800%, 11/15/09 2,145 2,145
Ohio State, Building Authority, Adult
Correctional Facilities Project
(RB) (MLO) (MBIA)
5.500%, 10/01/04 1,000 1,066
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
47
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
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 1,512
Ohio State, Water Development Authority
(RB) (AMBAC)
5.250%, 06/01/06 2,000 2,105
Ohio State, Water Development Authority
(RB) (MBIA)
6.000%, 12/01/00 2,000 2,100
----------
14,278
----------
OKLAHOMA--1.2%
Oklahoma City, Metropolitan Utility Authority,
Callable 09/01/05 @ 102 (RB)
5.600%, 09/01/06 1,000 1,085
Oklahoma County, Housing Finance Authority, Capital
Appreciation, Pre-refunded @ 56.915 (RB)
0.000%, 03/01/06 (B) 3,690 1,476
Oklahoma State, Housing Finance Authority
(RB) (FNMA)
5.500%, 11/01/25 3,000 3,124
----------
5,685
----------
OREGON--2.6%
Lane County, School District #19 Springfield,
Callable 10/15/04 @ 101 (GO) (MBIA)
5.900%, 10/15/06 1,000 1,104
Polk Marion & Benton Counties, School
District #13J (GO) (FGIC)
5.500%, 12/01/04 1,015 1,096
Portland, Community College District,
Series A, Callable 07/01/02 @ 100 (GO)
6.000%, 07/01/12 500 536
Washington County, Criminal Justice Facilities,
Callable 12/01/04 @ 100 (RB)
5.625%, 12/01/05 900 971
Washington County, Unified Sewer Agency
Revenue, Series 1 (RB) (AMBAC)
6.125%, 10/01/12 5,000 5,544
Yamhill County, School District #40
(GO) (FGIC)
5.375%, 06/01/04 1,000 1,068
5.375%, 06/01/05 1,350 1,441
----------
11,760
----------
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
PENNSYLVANIA--3.3%
Delaware River Port Authority, PA & NJ
Bridges (RB) (AMBAC)
7.375%, 01/01/07 $ 2,000 $ 2,086
Erie County, Prison Authority,
Pre-refunded @ 100 (RB) (MLO) (MBIA)
6.700%, 11/01/03 (B) 1,000 1,084
Erie County, Prison Authority,
Pre-refunded @ 100 (RB) (MLO) (MBIA)
6.600%, 11/01/02 (B) 1,000 1,081
Governor Mifflin School District, School
Improvements Project,
Pre-refunded @ 100 (GO) (AMBAC)
6.500%, 02/01/13 (B) 2,000 2,160
Northumberland County, Commonwealth
Lease, Callable 10/15/01 @ 100
(RB) (MLO) (MBIA)
6.600%, 10/15/02 1,000 1,080
Pennsylvania State (GO) (AMBAC)
5.125%, 09/15/03 5,000 5,231
Seneca Valley, School District, Series A,
Callable 07/01/08 @ 100 (GO) (FGIC)
4.650%, 07/01/09 2,500 2,491
----------
15,213
----------
PUERTO RICO--0.3%
Electric Power Authority, Series Aa
(RB) (MBIA)
6.000%, 07/01/06 1,000 1,109
Housing Finance Authority, Single Family
Mortgages (RB) (GNMA)
5.800%, 10/15/00 60 62
Housing Finance Authority, Single Family
Mortgages (RB) (AMT) (GNMA)
6.000%, 02/01/02 110 115
----------
1,286
----------
RHODE ISLAND--1.4%
Rhode Island State, Consolidated Capital
Development, Series B,
Pre-refunded @ 102 (GO)
6.125%, 05/15/04 (B) 5,200 5,512
Rhode Island State, Depositors Protection,
Series A (GO) (FSA)
6.250%, 08/01/03 1,000 1,094
----------
6,606
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
48
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
SOUTH CAROLINA--0.6%
Piedmont, Electrical Power Agency,
Series A (RB) (FGIC)
6.250%, 01/01/04 $ 2,350 $ 2,544
----------
SOUTH DAKOTA--0.1%
Sioux Falls (COP) (MLO)
6.450%, 08/01/01 500 538
----------
TENNESSEE--0.5%
Montgomery County, Building Authority,
Callable 12/15/98 @ 100 (RB)
7.500%, 12/15/00 35 35
Nashville & Davidson Counties, Water &
Sewer Revenue (RB) (MBIA)
6.000%, 01/01/04 2,000 2,175
----------
2,210
----------
TEXAS--5.6%
Austin, Electric, Waterworks & Sewer,
Pre-refunded @ 100 (RB)
6.600%, 10/01/99 (B) 365 379
Dallas County, Callable 02/15/01 @ 100 (GO)
6.400%, 08/15/03 750 793
Dallas, Callable 08/15/98 @ 101 (GO)
6.875%, 02/15/99 500 511
Denton & Collin Counties (GO)
6.500%, 02/15/03 3,000 3,311
Galveston County, Special Tax Revenue,
Escrowed to Maturity (RB) (MBIA)
6.400%, 02/01/05 315 352
Galveston County, Special Tax Revenue
(RB) (MBIA)
6.400%, 02/01/05 185 196
Garland, School District (GO)
8.000%, 02/15/01 1,000 1,103
Houston, Housing Finance (RB)
8.000%, 06/01/14 2,000 2,195
Irving, Independent School District,
Capital Appreciation Series A (GO)
0.000%, 02/15/09 6,190 3,660
Liberty & Johnson Counties, Correctional
Facilities, Callable 09/15/01 @ 100
(RB) (MBIA)
6.850%, 09/15/04 1,000 1,081
Lubbock, Independent School District,
Pre-refunded @ 100 (GO) (PSFG)
6.375%, 08/15/00 (B) 725 763
Richardson, Independent School District (GO)
5.000%, 02/15/03 (D) 5,000 5,175
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Texas State Finance Authority, Series A (RB)
6.500%, 10/01/04 $ 5,000 $ 5,638
Texas State, Pre-refunded @ 100 (GO)
7.000%, 06/01/98 (B) 500 502
----------
25,659
----------
UTAH--1.9%
Intermountain Power Agency (RB) (FSA)
5.250%, 07/01/03 1,000 1,045
Intermountain Power Agency,
Callable 07/01/98 @ 102 (RB)
7.300%, 07/01/00 500 514
7.625%, 07/01/08 500 514
Nebo, School District,
Callable 04/01/01 @ 100 (GO) (FGIC)
5.500%, 04/01/04 500 517
Salt Lake County, Municipal Building
Authority, Series A (RB) (MLO)
6.000%, 10/01/03 525 569
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 F1
(RB) (FHA/VA)
4.900%, 01/01/99 205 207
Utah State, Housing Finance Agency,
Series R (RB) (FHA/VA)
5.950%, 07/01/08 2,285 2,419
Utah State, Housing Finance Agency,
Single Family Mortgages (RB) (AMBAC)
6.300%, 01/01/18 1,385 1,484
Utah State, Housing Finance Agency, Single
Family Mortgages, Series E1 (RB) (FHA/VA)
6.050%, 07/01/98 85 86
Utah State, Housing Finance Agency, Single
Family Mortgages (RB) (FHA/VA)
6.350%, 01/01/02 170 179
5.650%, 07/01/06 800 853
----------
8,891
----------
VIRGINIA--2.3%
Fairfax County, Public Improvements,
Series A, Callable 06/01/05 @ 102 (GO)
5.000%, 06/01/06 2,000 2,085
Fairfax County, Series A,
Pre-refunded @ 100.5 (GO)
6.000%, 04/01/00 (B) 500 503
Peninsula Regional Jail Authority
(RB) (MBIA)
5.300%, 10/01/09 1,000 1,049
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
49
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Portsmouth, Callable 08/01/07 @ 101
(GO) (FGIC)
4.700%, 08/01/09 $ 2,655 $ 2,668
Riverside Regional Jail Authority,
Callable 07/01/05 @ 102 (RB) (MBIA)
5.700%, 07/01/08 2,000 2,173
Virginia State, Housing Development
Authority, Series H (RB)
6.200%, 07/01/04 1,000 1,074
Virginia State, Housing Development
Authority, Series D (RB)
6.100%, 01/01/14 1,110 1,192
----------
10,744
----------
WASHINGTON--13.0%
Chelan County, Public Utility District, Capital
Appreciation, (RB) (MBIA)
0.000%, 06/01/29 20,000 3,875
Clark County, Pre-refunded @ 100 (GO)
6.850%, 12/01/02 (B) 495 505
Clark County, Public Utility District #1,
Callable 01/01/01 @ 102 (RB) (FGIC)
6.100%, 01/01/02 750 797
Clark County, School District #37 (GO)
6.600%, 12/01/98 450 459
Clark County, School District #37,
Callable 12/01/02 @ 100 (GO)
6.100%, 12/01/04 1,000 1,075
Franklin County, Public Utility,
Callable 03/01/99 @ 100 (RB) (AMBAC)
7.000%, 09/01/00 400 410
Grant County, Public Utility District #2 (RB)
5.750%, 01/01/02 670 707
Grays Harbor County, Public Utility District #1,
Callable 01/01/99 @ 100 (RB) (AMBAC)
7.000%, 01/01/01 465 476
Island County, School District #206,
Callable 12/01/04 @ 100 (GO) (AMBAC)
5.750%, 12/01/06 700 753
King County, Public Hospital District (RB)
5.400%, 06/01/00 500 513
King County, Public Hospital District,
Callable 12/01/02 @ 100 (RB)
5.800%, 12/01/03 910 967
King County, School District #403,
Callable 12/01/02 @ 101 (GO)
6.050%, 12/01/03 875 952
King County, School District #408 (GO)
6.200%, 12/01/02 515 557
King County, School District #415 (GO)
5.750%, 12/01/01 950 1,003
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 $ 1,026
King County, Series A,
Pre-refunded @ 100 (GO)
6.900%, 12/01/02 (B) 500 534
King County, Series B,
Callable 05/26/98 @ 102 (GO)
5.850%, 12/01/13 3,000 3,251
Kitsap County, School District #401,
Callable 12/01/02 @ 101 (GO)
6.625%, 12/01/08 750 831
Kitsap County, School District #402,
Callable 05/29/98 @ 100 (GO)
7.400%, 12/01/99 115 115
Pierce County, School District #3,
Series B (GO)
5.900%, 12/01/00 1,450 1,521
Pierce County, School District #320 (GO)
6.000%, 12/01/06 1,000 1,105
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%, 12/01/04 500 542
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 1,164
Port Tacoma, Series A (GO)
6.300%, 06/01/01 790 843
Seattle, Metropolitan Municipality,
Callable 07/01/98 @ 101.5 (GO)
6.300%, 01/01/04 790 806
Seattle, Solid Waste,
Callable 05/01/99 @ 102 (GO)
7.000%, 05/01/00 500 526
Snohomish County, Housing Authority,
Callable 04/01/06 @ 100 (RB)
6.300%, 04/01/16 1,035 1,089
Snohomish County, Public Utilities
District #1, Callable 11/01/98 @ 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 2,143
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
50
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Snohomish County, Public Utilities
District #1, Series B (GO)
6.700%, 01/01/03 $ 1,000 $ 1,078
Snohomish County, School District #2,
Callable 12/01/03 @ 102 (GO) (MBIA)
6.000%, 12/01/06 1,800 1,962
Snohomish County, School District #2,
Series A, Callable 06/01/01 @ 100 (GO)
6.700%, 06/01/02 1,200 1,289
Snohomish County, School District #6 (GO)
6.250%, 12/01/01 900 964
Snohomish County, School District #6,
Pre-refunded @ 100 (GO)
6.800%, 12/01/04 (B) 900 969
Snohomish County, Solid Waste,
Callable 12/01/01 @ 102 (GO) (MBIA)
6.800%, 12/01/03 650 714
South Columbia Basin (GO)
5.800%, 12/01/01 500 527
Spokane County, School District #81 (GO)
5.900%, 12/01/02 1,000 1,074
Spokane County, Sewer Revenue,
Callable 06/01/02 @ 100 (RB)
6.150%, 06/01/05 1,470 1,573
Spokane County, Solid Waste Management,
Callable 12/01/02 @ 102 (RB) (AMBAC)
6.400%, 12/01/03 800 884
Spokane, Callable 05/26/98 @ 100 (GO)
6.700%, 01/01/99 500 504
Tacoma, Electrical Systems Revenue,
Callable 01/01/02 @ 102 (RB) (AMBAC)
6.000%, 01/01/06 1,400 1,493
Tacoma, Series A,
Callable 07/01/02 @ 100 (GO)
5.900%, 07/01/03 600 639
Tacoma, Utility Revenue,
Pre-refunded @ 101 (RB) (AMBAC)
6.800%, 12/01/00 (B) 465 491
Tacoma, Utility Revenue,
Pre-refunded @ 101 (RB) (MBIA)
6.200%, 12/01/03 (B) 575 620
Thurston County, School District #111,
Callable 12/01/02 @ 100 (GO)
6.700%, 12/01/03 1,000 1,103
Washington State (GO)
7.100%, 06/01/98 250 251
Washington State, Conservation &
Renewable Energy System (RB)
5.650%, 10/01/03 700 752
Washington State, Health Care Facility
Authority (RB) (FGIC)
7.500%, 08/15/00 600 620
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
Washington State, Hearthstone Project,
Callable 01/01/05 @ 102 (RB)
6.000%, 01/01/10 $ 810 $ 872
Washington State, Public Power Supply
System, Nuclear Project #2, Series A
(RB) (AMBAC)
5.700%, 07/01/11 1,000 1,060
Washington State, Public Power Supply
System, Nuclear Project #3, Series B (RB)
5.250%, 07/01/03 1,090 1,130
Washington State, Public Power Supply
Systems, Nuclear Project #2,
Callable 01/01/01 @ 102 (RB)
7.500%, 07/01/03 3,000 3,308
Washington State, Series 93A (GO)
5.300%, 10/01/01 1,000 1,041
Washington State, Series A,
Callable 04/01/01 @ 102 (COP) (MLO)
6.800%, 04/01/05 705 764
Washington State, Series R-89B (GO)
7.000%, 09/01/98 375 380
Washington State, Series R-92B (GO)
6.200%, 09/01/01 1,000 1,069
Washington State, Single Family Mortgage
Revenue (RB) (GNMA/FNMA)
6.700%, 07/01/02 265 278
----------
59,510
----------
WISCONSIN--1.9%
Milwaukee County,
Callable 09/01/02 @ 100 (GO)
5.550%, 09/01/03 1,700 1,781
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%, 10/01/03 735 772
Racine, School District,
Callable 04/01/99 @ 100 (GO) (AMBAC)
6.500%, 04/01/01 250 256
Wisconsin State,
Callable 05/01/06 @ 100 (GO)
4.800%, 05/01/10 2,000 1,980
Wisconsin State, Housing & Economic
Authority, Series A (GO)
5.000%, 11/01/01 1,585 1,619
Wisconsin State, Series D,
Callable 05/01/00 @ 101 (GO)
6.000%, 05/01/01 500 524
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
51
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION Par (000)/Shares Value (000)
- --------------------------------------------------------------------------------
Wisconsin State, Series G,
Callable 05/01/99 @ 101 (GO)
6.400%, 05/01/00 $ 1,000 $ 1,035
----------
8,491
----------
WYOMING--0.3%
Sweetwater, Pacific Power & Light,
Pre-refunded @ 100 (RB)
6.500%, 12/01/07 (B) 700 755
Wyoming State, Community Development
Authority, Single Family Mortgages
(RB) (FHA/VA)
6.200%, 06/01/99 500 511
----------
1,266
----------
TOTAL MUNICIPAL BONDS
(Cost $435,387) 449,300
----------
MONEY MARKET FUNDS--2.5%
Federated Minnesota Municipal Cash Trust 1,156,135 1,156
Federated Tax Free Money Market 10,118,013 10,118
----------
TOTAL MONEY MARKET FUNDS
(Cost $11,274) 11,274
---------
TOTAL INVESTMENTS--100.4%
(Cost $446,661) 460,574
---------
OTHER ASSETS AND LIABILITIES, NET--(0.4%) (1,611)
---------
NET ASSETS:
Portfolio Shares -- Class Y
($.0001 par value -- 2 billion authorized)
based on 41,769,600 outstanding shares 435,932
Portfolio Shares -- Retail Class A
($.0001 par value -- 2 billion authorized)
based on 666,654 outstanding shares 7,192
Distribution in excess of net investment income (27)
Accumulated net realized gain on investments 1,953
Net unrealized appreciation of investments 13,913
---------
TOTAL NET ASSETS--100.0% $ 458,963
---------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--CLASS Y $ 10.82
---------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE--RETAIL CLASS A $ 10.83
MAXIMUM SALES CHARGE OF 3.00% (1) 0.33
---------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 11.16
---------
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 March 31, 1998. The date shown is the 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.
(D) At March 31, 1998, the cost of securities purchased on a when issued basis.
(Total cost: Alabama State Docks $2,959,830; Boise $1,225,000 & Richardson,
Texas $5,163,400).
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
FHLMC--Federal Home Loan Mortgage Corporation
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
LOC--Letter of Credit
MBIA--Municipal Bond Insurance Association
MLO--Municipal Lease Obligation
PN--Promissory Notes
PSFG--Permanent School Fund Guaranteed
RB--Revenue Bond
VA--Veterans Administration
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
52
BALANCED FUND
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
COMMON STOCKS--54.0%
AEROSPACE & DEFENSE--1.1%
Raytheon Company, Cl A 126,755 $ 7,209
----------
APPAREL/TEXTILES--0.8%
Fruit of the Loom, Cl A* 168,500 5,160
----------
AUTOMOTIVE--0.6%
General Motors 55,700 3,756
----------
BANKS--4.4%
BankBoston 93,300 10,286
Chase Manhattan 76,100 10,264
Citicorp 53,300 7,569
----------
28,119
----------
CHEMICALS--1.5%
PPG Industries 141,100 9,586
----------
COMMUNICATIONS EQUIPMENT--1.0%
Nokia, ADR 59,100 6,379
----------
COMPUTERS & SERVICES--4.3%
3Com* 169,500 6,091
IBM 91,900 9,546
Seagate Technology* 237,400 5,994
Sun Microsystems* 142,900 5,962
----------
27,593
----------
CONTAINERS & PACKAGING--0.9%
Bemis 123,100 5,555
----------
DRUGS--2.9%
American Home Products 73,700 7,029
Bristol-Myers Squibb 31,200 3,255
Pharmacia & Upjohn 187,000 8,181
----------
18,465
----------
EXPLORATION/DRILLING--0.6%
Diamond Offshore Drilling 89,600 4,066
----------
FINANCIAL SERVICES--1.6%
American Express 45,400 4,168
Household International 44,400 6,116
----------
10,284
----------
FOOD, BEVERAGE & TOBACCO--2.7%
ConAgra 189,600 6,091
Dole Food 34,600 1,674
Sara Lee 152,100 9,373
----------
17,138
----------
BALANCED FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
INSURANCE--4.0%
AMBAC 137,900 $ 8,058
Cigna 39,600 8,118
General Re 23,800 5,251
TIG Holdings 147,400 3,878
----------
25,305
----------
LEISURE--1.0%
Brunswick 187,100 6,525
----------
MACHINERY--1.3%
Case Equipment 118,900 8,100
----------
MEDICAL PRODUCTS & SERVICES--3.5%
Aetna 83,500 6,967
Columbia/HCA Healthcare 286,505 9,240
United Healthcare 91,800 5,944
----------
22,151
----------
MISCELLANEOUS BUSINESS SERVICES--1.1%
Computer Associates International 121,400 7,011
----------
MULTI-INDUSTRY--0.6%
Minnesota Mining & Manufacturing 39,600 3,611
----------
OFFICE PRODUCTS--0.9%
IKON Office Solutions 155,300 5,368
----------
OIL-INTERNATIONAL--5.9%
Elf Aquitaine, ADR 132,300 8,566
Exxon 105,700 7,148
Mobil 82,400 6,314
Royal Dutch Petroleum 133,100 7,562
Texaco 135,300 8,152
----------
37,742
----------
PAPER & PAPER PRODUCTS--0.9%
Kimberly-Clark 108,300 5,429
----------
RAILROADS--2.1%
Burlington Northern Santa Fe 72,400 7,530
Union Pacific 109,100 6,130
----------
13,660
----------
REAL ESTATE INVESTMENT TRUSTS--2.8%
Duke Realty Investments 164,800 4,017
Equity Residential Properties Trust 107,300 5,392
Meditrust 18,500 571
Simon Debartolo Group 231,900 7,943
----------
17,923
----------
RETAIL--2.4%
Sears Roebuck 123,600 7,099
Toys `R' Us* 268,400 8,069
----------
15,168
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
53
BALANCED FUND (CONTINUED)
DESCRIPTION Par (000) Value (000)
- --------------------------------------------------------------------------------
SPECIALTY CONSTRUCTION--0.6%
Masco 60,100 $ 3,576
----------
TELEPHONES & TELECOMMUNICATION--3.3%
AT&T 60,200 3,951
Bell Atlantic 100,600 10,311
Deutsche Telekom, ADR 314,500 6,919
----------
21,181
----------
UTILITIES--0.5%
Entergy 56,500 1,681
Southern 55,600 1,539
----------
3,220
----------
WHOLESALE--0.7%
W.W. Grainger 41,200 4,236
----------
TOTAL COMMON STOCKS
(Cost $257,083) 343,516
----------
U.S. TREASURY OBLIGATIONS--27.6%
U.S. Treasury Bonds
7.125%, 02/15/23 $ 46,730 53,311
6.875%, 08/15/25 14,695 16,381
U.S. Treasury Notes
5.625%, 11/30/99 7,720 7,721
6.500%, 05/31/01 13,720 14,048
6.250%, 10/31/01 33,095 33,686
6.250%, 02/15/03 18,365 18,799
6.500%, 08/15/05 11,855 12,382
6.875%, 05/15/06 17,920 19,201
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $171,666) 175,529
----------
CORPORATE OBLIGATIONS--7.0%
Bear Stearns
6.560%, 06/20/00 6,780 6,856
Chrysler Financial
5.850%, 05/15/00 10,185 10,147
Cigna
7.400%, 01/15/03 2,825 2,938
Cit Group Holdings
6.200%, 10/20/00 8,250 8,271
Comdisco
5.780%, 01/19/99 6,850 6,831
Santander Financial Issuances
7.250%, 05/30/06 9,335 9,708
----------
TOTAL CORPORATE OBLIGATIONS
(Cost $44,299) 44,751
----------
BALANCED FUND (CONTINUED)
DESCRIPTION Par (000)/Shares Value (000)
- --------------------------------------------------------------------------------
OTHER MORTGAGE-BACKED OBLIGATIONS--6.0%
Circuit City Credit Card Master Trust
Series 1995-1, Cl A
6.375%, 08/15/05 $ 8,600 $ 8,688
Drexel Burnham Lambert Trust Trust S-2
9.000%, 08/01/18 250 250
General Electric Capital Mortgage 1994-11 A1
6.500%, 03/25/24 830 830
General Electric Capital Mortgage 1994-17 A6
7.000%, 05/25/24 2,675 2,687
GMAC Commercial Mortgage Securities 1997-C1
6.898%, 09/15/07 6,700 6,816
Merrill Lynch Mortgage Investors 1995-C3
7.088%, 12/26/25 12,600 12,988
NAFCO Auto Trust
7.000%, 12/31/01 994 997
Prudential Home Loan Mortgage 1992-36 A8
6.500%, 11/25/99 5,149 5,144
Residential Funding 1992-36 A2
5.700%, 11/25/07 38 39
----------
TOTAL OTHER MORTGAGE-BACKED OBLIGATIONS
(Cost $38,090) 38,439
----------
U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED OBLIGATIONS--0.8%
FHLMC
6.000%, 11/15/08 2,700 2,689
FNMA
5.450%, 10/25/18 2,700 2,667
----------
TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-BACKED OBLIGATIONS
(Cost $5,328) 5,356
----------
RELATED PARTY MONEY MARKET FUND--4.1%
First American Prime Obligations Fund (A) 25,954,991 25,955
----------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $25,955) 25,955
----------
TOTAL INVESTMENTS--99.5%
(Cost $542,421) 633,546
----------
OTHER ASSETS AND LIABILITIES, NET--0.5% (B) 2,904
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
54
BALANCED FUND (CONCLUDED)
DESCRIPTION Value (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares -- Class Y
($.0001 par value -- 2 billion authorized)
based on 35,138,958 outstanding shares $ 414,033
Portfolio Shares -- Retail Class A
($.0001 par value -- 2 billion authorized)
based on 2,966,686 outstanding shares 37,123
Portfolio Shares -- Retail Class B
($.0001 par value -- 2 billion authorized)
based on 4,086,331 outstanding shares 55,988
Undistributed net investment income 423
Accumulated net realized gain on investments 37,758
Net unrealized appreciation of investments 91,125
----------
TOTAL NET ASSETS--100.0% $ 636,450
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--CLASS Y $ 15.10
----------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE--RETAIL CLASS A $ 15.06
MAXIMUM SALES CHARGE OF 4.50% (1) 0.71
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 15.77
----------
NET ASSET VALUE AND OFFERING
PRICE PER SHARE--RETAIL CLASS B (2) $ 15.01
----------
* 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 statement.
(A) This money market fund is advised by U.S. Bank National Association who
also serves as Adviser for this Fund. See also the notes to the financial
statements.
(B) Other assets and liabilities representing greater than five percent of
total net assets include the following (000):
Cash collateral received for securities on loan $ 269,385
Payable upon return of securities on loan $(269,385)
ADR--American Depository Receipt
Cl--Class
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
GMAC--General Motors Acceptance Corporation
REAL ESTATE SECURITIES FUND
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
COMMON STOCKS--93.8%
REAL ESTATE INVESTMENT TRUSTS--93.8%
DIVERSIFIED--10.0%
Colonial Properties Trust 50,700 $ 1,613
Crescent Operating* 2,500 53
Crescent Real Estate Equities 68,000 2,448
Glenborough Realty Trust 33,000 961
Security Capital Group, Cl B* 23,000 707
Vornado Realty Trust 32,000 1,394
----------
7,176
----------
HEALTHCARE FACILITIES--4.5%
Health & Retirement Property Trust 31,500 634
Health Care 35,000 962
Health Care Property Investors 20,000 739
Meditrust 28,241 872
----------
3,207
----------
HOTELS--9.8%
Felcor Suite Hotels 22,000 815
Hospitality Properties Trust 31,400 1,113
Patriot American Hospitality 55,000 1,485
RFS Hotel Investors 46,000 840
Starwood Lodging 51,200 2,736
----------
6,989
----------
OFFICE/INDUSTRIAL--30.0%
Alexandria Real Estate Equities 30,000 951
Amb Property 49,000 1,182
Arden Realty Group 20,000 570
Beacon Capital Partnership* (A) 33,750 675
Bedford Property Investors 29,000 560
Boston Properties 32,000 1,126
Cabot Industrial Trust* 55,000 1,310
Duke Realty Investments 38,000 926
Equity Office Properties Trust 120,000 3,675
Great Lakes Real Estate 36,000 695
Highwoods Properties 17,800 629
Kilroy Realty 20,000 571
Liberty Property Trust 43,600 1,172
Mack Cali Realty 33,000 1,289
Prentiss Properties Trust 24,400 637
Reckson Associates 25,000 659
Security Capital Industrial Trust 48,000 1,230
SL Green Realty 28,000 716
Spieker Properties 29,000 1,196
Tower Realty Investment 25,000 616
Weeks 35,000 1,144
----------
21,529
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
55
REAL ESTATE SECURITIES FUND (CONTINUED)
DESCRIPTION Shares/Par (000) Value (000)
- --------------------------------------------------------------------------------
RESIDENTIAL--14.0%
Apartment Investment & Management 32,000 $ 1,232
Chateau Communities 32,000 952
Equity Residential Properties Trust 45,000 2,261
Gables Residential Trust 35,000 952
Home Properties of New York 32,000 888
Merry Land & Investment 42,000 940
Post Properties 22,100 883
Security Capital Atlantic 40,000 840
Summit Properties 50,000 1,006
Wellsford Real Properties* 6,100 88
----------
10,042
----------
RETAIL--17.1%
Bradley Real Estate 50,000 1,044
CBL & Associates Properties 44,000 1,078
Chelsea GCA Realty 25,000 925
Excel Realty Trust 27,100 965
Federal Realty Investment Trust 50,000 1,228
JDN Realty 13,000 444
Macerich 25,000 744
Mid-America Realty Investments 38,900 404
Mills 42,000 1,100
Pennsylvania 50,000 1,225
Simon Debartolo Group 80,000 2,740
Taubman Centers 26,000 340
----------
12,237
----------
SPECIALTY--8.4%
Capital Automotive* 75,000 1,416
Capital Trust, Cl A* 15,000 146
CCA Prison Realty Trust 18,000 746
Golf Trust of America 19,100 599
Public Storage 54,000 1,667
Storage Trust 27,600 681
Storage USA 21,000 806
----------
6,061
----------
TOTAL COMMON STOCKS
(Cost $59,799) 67,241
----------
CONVERTIBLE BOND--1.5%
Avatar Holding, 31.4465 shares
7.000%, 04/01/05 $ 1,000 1,081
----------
TOTAL CONVERTIBLE BOND
(Cost $1,006) 1,081
----------
PREFERRED STOCKS--1.1%
Glenborough Realty Trust* 20,000 523
Walden Residential Properties 10,000 265
----------
TOTAL PREFERRED STOCKS
(Cost $729) 788
----------
REAL ESTATE SECURITIES FUND (CONCLUDED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
WARRANTS--0.0%
Security Capital, Cl B 1 $ 5
Walden Residential Properties* 10,000 10
----------
TOTAL WARRANTS
(Cost $12) 15
----------
RELATED PARTY MONEY MARKET FUND--2.9%
First American Prime Obligations Fund (B) 2,080,993 2,081
----------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $2,081) 2,081
----------
TOTAL INVESTMENTS--99.3%
(Cost $63,627) 71,206
----------
OTHER ASSETS AND LIABILITIES, NET--0.7% (C) 514
----------
NET ASSETS:
Portfolio Shares -- Class Y
($.0001 par value -- 2 billion authorized)
based on 4,489,869 outstanding shares 57,766
Portfolio Shares -- Retail Class A
($.0001 par value -- 2 billion authorized)
based on 167,729 outstanding shares 2,209
Portfolio Shares -- Retail Class B
($.0001 par value -- 2 billion authorized)
based on 260,512 outstanding shares 3,411
Distribution in excess of net investment income (104)
Accumulated net realized gain on investments 859
Net unrealized appreciation of investments 7,579
----------
TOTAL NET ASSETS--100.0% $ 71,720
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--CLASS Y $ 14.59
----------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE--RETAIL CLASS A $ 14.57
MAXIMUM SALES CHARGE OF 4.50% (1) 0.69
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 15.26
----------
NET ASSET VALUE AND OFFERING
PRICE PER SHARE--RETAIL CLASS B (2) $ 14.45
----------
* 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 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 to dealers in that program or other "accredited
investors".
(B) This money market fund is advised by First Bank National Association who
also serves as Adviser for this Fund. See also the notes to the financial
statements.
(C) Other assets and liabilities representing greater than five percent of
total net assets include the following (000):
Cash collateral received for securities on loan $ 10,203
Payable upon return of securities on loan $(10,203)
Cl--Class
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
56
EQUITY INCOME FUND
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
COMMON STOCKS--81.2%
AUTOMOTIVE--4.2%
Ford Motor 273,976 $ 17,757
----------
BANKS--10.0%
Bank of New York 120,000 7,537
CoreStates Financial 45,200 4,057
First Union 76,000 4,313
Mellon Bank 98,000 6,223
National City 155,800 11,422
NationsBank 77,424 5,647
Summit Bancorp 52,500 2,628
----------
41,827
----------
BEAUTY PRODUCTS--1.0%
Colgate-Palmolive 50,000 4,331
----------
CHEMICALS--1.6%
E.I. du Pont de Nemours 98,600 6,705
----------
DRUGS--7.7%
Abbott Laboratories 76,400 5,754
American Home Products 54,000 5,150
Johnson & Johnson 75,800 5,557
Pfizer 47,400 4,725
Pharmacia & Upjohn 88,000 3,850
Schering Plough 86,000 7,025
----------
32,061
----------
ELECTRICAL SERVICES--4.6%
Cinergy 141,300 5,228
FPL Group 64,300 4,131
Houston Industries 71,200 2,047
Minnesota Power & Light 35,900 1,526
Texas Utilities 161,900 6,365
----------
19,297
----------
FINANCIAL SERVICES--3.7%
American Express 88,300 8,107
Beneficial 36,000 4,475
FNMA 45,000 2,846
----------
15,428
----------
FOOD, BEVERAGE & TOBACCO--5.0%
ConAgra 101,772 3,269
PepsiCo 101,000 4,311
Philip Morris 180,000 7,504
RJR Nabisco 34,300 1,074
Sara Lee 77,700 4,788
----------
20,946
----------
EQUITY INCOME FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
GAS/NATURAL GAS--0.6%
Enron 56,700 $ 2,629
----------
HOUSEHOLD PRODUCTS--1.5%
Newell 130,000 6,297
----------
INSURANCE--2.0%
IPC Holdings 131,300 4,234
Mid Ocean 55,000 4,263
----------
8,497
----------
MACHINERY--2.6%
Emerson Electric 75,000 4,889
General Electric 68,000 5,861
----------
10,750
----------
MARINE TRANSPORTATION--1.0%
Knightsbridge Tankers Limited* 152,000 4,332
----------
MINING--0.6%
Great Northern Iron Ore Properties 40,200 2,372
----------
OIL-DOMESTIC--1.5%
Ashland Oil 75,000 4,247
Atlantic Richfield 24,000 1,887
----------
6,134
----------
OIL-INTERNATIONAL--9.1%
Amoco 101,500 8,767
Chevron 99,000 7,951
Exxon 118,000 7,980
Mobil 132,600 10,160
Royal Dutch Petroleum 64,000 3,636
----------
38,494
----------
PAPER & PAPER PRODUCTS--2.3%
Kimberly-Clark 121,000 6,065
Weyerhaeuser 60,000 3,390
----------
9,455
----------
PETROLEUM & FUEL PRODUCTS--0.4%
Occidental Petroleum 59,000 1,729
----------
PETROLEUM REFINING--1.2%
Lyondell Petrochemical 142,168 4,843
----------
RAILROADS--1.6%
Union Pacific 116,700 6,557
----------
REAL ESTATE INVESTMENT TRUSTS--8.3%
Crescent Real Estate Equity 137,600 4,954
Healthcare Realty Trust 178,400 5,040
Manufactured Home Communities 176,100 4,557
Meditrust 60,080 1,855
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
57
EQUITY INCOME FUND (CONTINUED)
DESCRIPTION Shares/Par (000) Value (000)
- --------------------------------------------------------------------------------
National Golf Properties 230,000 $ 7,331
Simon Debartolo Group 184,000 6,302
Weeks 144,400 4,720
----------
34,759
----------
RETAIL--4.6%
Intimate Brands 410,000 11,096
J.C. Penney 110,300 8,348
----------
19,444
----------
TELEPHONES & TELECOMMUNICATION--6.1%
AT&T 193,000 12,666
Deutsche Telecom, ADR* 425,000 9,350
Sprint 50,000 3,384
----------
25,400
----------
TOTAL COMMON STOCKS
(Cost $186,278) 340,044
----------
PREFERRED CONVERTIBLE STOCKS--8.4%
HOUSEHOLD PRODUCTS--0.9%
Newell Financial* (B) 65,000 3,673
----------
ENTERTAINMENT--1.1%
Houston Industries 70,000 4,537
----------
FINANCIAL SERVICES--1.4%
Advanta, Cl B 26,334 632
FirstPlus Financial Group* 130,000 5,501
----------
6,133
----------
INSURANCE--0.9%
Aetna 45,000 3,603
----------
RAILROADS--1.4%
Union Pacific Capital Trust* (B) 110,000 5,858
----------
TELEPHONES & TELECOMMUNICATION--2.7%
Airtouch Communications 211,500 11,420
----------
TOTAL PREFERRED CONVERTIBLE STOCKS
(Cost $30,629) 35,224
----------
CONVERTIBLE BONDS--4.6%
Danka Business, 34.3348 Shares
6.750%, 04/01/02 $ 4,000 3,825
Hometown Buffet, 73.2600 Shares
7.000%, 12/01/02 4,000 4,925
Medical Care Int'l, 14.5815 Shares
6.750%, 10/01/06 6,800 6,069
Tenet Healthcare, 25.9403 Shares
6.000%, 12/01/05 4670 4,314
----------
EQUITY INCOME FUND (CONCLUDED)
DESCRIPTION Value (000)
- --------------------------------------------------------------------------------
TOTAL CONVERTIBLE BONDS
(Cost $17,713) $ 19,133
----------
RELATED PARTY MONEY MARKET FUND--5.2%
First American Prime Obligations Fund (A) 22,018,278 22,018
----------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $22,018) 22,018
----------
TOTAL INVESTMENTS--99.4%
(Cost $256,638) 416,419
----------
OTHER ASSETS AND LIABILITIES, NET--0.6% (C) 2,534
----------
NET ASSETS:
Portfolio Shares -- Class Y
($.0001 par value -- 2 billion authorized)
based on 23,801,626 outstanding shares 231,973
Portfolio Shares -- Retail Class A
($.0001 par value -- 2 billion authorized)
based on 583,903 outstanding shares 7,776
Portfolio Shares -- Retail Class B
($.0001 par value -- 2 billion authorized)
based on 501,341 outstanding shares 6,360
Undistributed net investment income 264
Accumulated net realized gain on investments 12,799
Net unrealized appreciation of investments 159,781
----------
TOTAL NET ASSETS--100.0% $ 418,953
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--CLASS Y $ 16.84
----------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE--RETAIL CLASS A $ 16.80
MAXIMUM SALES CHARGE OF 4.50% (1) 0.79
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 17.59
----------
NET ASSET VALUE AND OFFERING
PRICE PER SHARE--RETAIL CLASS B (2) $ 16.75
----------
* 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 also the notes to the financial
statements.
(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) Other assets and liabilities representing greater than five percent of
total net assets include the following (000):
Cash collateral received for securities on loan $ 106,288
Payable upon return of securities on loan $(106,288)
ADR--American Depository Receipt
Cl--Class
FNMA--Federal National Mortgage Association
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
58
EQUITY INDEX FUND
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
COMMON STOCKS--98.6%
AEROSPACE & DEFENSE--0.5%
Lockheed Martin 24,400 $ 2,745
Raytheon Company, Cl B 42,500 2,481
----------
5,226
----------
AGRICULTURAL PRODUCTION - LIVESTOCK--0.2%
Bestfoods 18,000 2,104
----------
AGRICULTURE--0.1%
Pioneer Hi-Bred International 8,200 800
----------
AIR TRANSPORTATION--0.5%
AMR* 11,400 1,632
Delta Air Lines 9,400 1,112
Federal Express* 18,400 1,309
Southwest Airlines 27,700 819
U.S. Air Group* 11,400 845
----------
5,717
----------
AIRCRAFT--1.4%
Allied Signal 70,700 2,969
Boeing 125,300 6,531
General Dynamics 7,900 680
Northrop 8,400 902
Textron 20,600 1,586
United Technologies 29,200 2,696
----------
15,364
----------
APPAREL/TEXTILES--0.2%
Fruit of the Loom, Cl A* 9,200 282
Liz Claiborne 8,400 419
Reebok International* 7,100 217
Russell 4,600 123
Springs Industries, Cl A 2,500 137
V.F 15,300 804
----------
1,982
----------
AUTOMOTIVE--2.1%
Chrysler 81,300 3,379
Dana 13,200 768
Eaton 9,700 923
Echlin 7,900 414
Fleetwood Enterprises 4,600 214
Ford Motor 150,500 9,754
General Motors 88,700 5,982
Navistar International* 9,100 318
Paccar 9,800 584
TRW 15,400 849
----------
23,185
----------
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
BANKS--9.1%
Banc One 81,000 $ 5,123
Bank of New York 47,200 2,965
BankAmerica 87,000 7,188
BankBoston 18,200 2,007
Bankers Trust New York 12,300 1,480
BB&T 17,900 1,212
Chase Manhattan 52,800 7,121
Citicorp 57,300 8,137
Comerica 13,200 1,397
CoreStates Financial 24,800 2,226
Fifth Third Bancorp 19,500 1,667
First Chicago NBD 36,500 3,217
First Union 81,100 4,602
Fleet Financial Group 34,200 2,909
Golden West Financial 7,100 680
H.F. Ahmanson 13,700 1,062
Huntington Bancshares 24,000 874
J.P. Morgan 22,300 2,995
KeyCorp 55,100 2,083
MBNA 62,800 2,249
Mellon Bank 31,900 2,026
Mercantile Bancorp 16,400 899
National City 26,500 1,943
NationsBank 117,900 8,599
Northern Trust 14,000 1,047
Norwest 94,700 3,936
PNC Bank 38,200 2,290
Republic New York 6,800 907
State Street 20,200 1,375
Summit Bancorp 22,100 1,106
Suntrust Banks 26,400 1,990
Synovus Financial 21,900 813
U.S. Bancorp 30,800 3,842
Wachovia 25,800 2,188
Washington Mutual 32,300 2,317
Wells Fargo 10,900 3,611
----------
100,083
----------
BEAUTY PRODUCTS--1.8%
Alberto-Culver, Cl B 7,100 216
Avon Products 16,600 1,295
Colgate-Palmolive 36,700 3,179
Ecolab 16,200 470
International Flavors & Fragrances 13,700 646
Procter & Gamble 168,300 14,200
----------
20,006
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
59
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
BROADCASTING, NEWSPAPERS & ADVERTISING--0.8%
Clear Channel Communications* 12,300 $ 1,205
Comcast, Cl A 43,800 1,547
Interpublic Group 15,800 982
Omnicom Group 20,300 955
Tele-Communications, Cl A* 63,600 1,978
Viacom, Cl B* 44,299 2,381
----------
9,048
----------
BUILDING & CONSTRUCTION--0.3%
Centex 7,400 282
Fluor 10,500 522
Foster Wheeler 5,100 156
Halliburton 32,800 1,646
Kaufman & Broad Home 4,900 160
Owens Corning 6,700 241
Pulte 2,700 126
----------
3,133
----------
CHEMICALS--2.4%
Air Products & Chemicals 14,800 1,227
B.F. Goodrich 9,000 460
Dow Chemical 28,400 2,762
E.I. du Pont de Nemours 141,900 9,649
Eastman Chemical 9,800 661
FMC* 4,600 361
Great Lakes Chemical 7,500 405
Hercules 12,100 597
Monsanto 74,400 3,869
Morton International 16,300 535
Nalco Chemical 8,300 337
PPG Industries 22,300 1,515
Praxair 19,800 1,018
Rohm & Haas 7,700 796
Union Carbide 15,400 772
W.R. Grace 9,300 778
----------
25,742
----------
COMMUNICATIONS EQUIPMENT--1.1%
Andrew* 11,100 220
DSC Communications* 14,800 269
General Instrument* 18,500 387
Harris 10,000 521
ITT Industries 14,900 567
Motorola 74,800 4,535
Northern Telecom 65,300 4,220
Scientific-Atlanta 9,900 194
Tellabs* 22,800 1,530
----------
12,443
----------
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
COMPUTERS & SERVICES--4.5%
Apple Computer* 16,600 $ 457
Bay Networks* 27,600 749
Cabletron Systems* 19,800 288
Ceridian* 9,600 518
Cisco Systems* 127,600 8,725
Compaq Computer* 189,800 4,911
Data General* 6,100 108
Dell Computer* 81,900 5,549
Digital Equipment* 18,400 963
EMC* 62,200 2,352
Hewlett Packard 130,400 8,264
IBM 121,900 12,662
Pitney Bowes 36,300 1,822
Seagate Technology* 30,400 768
Silicon Graphics* 23,500 328
Tandy 13,000 611
Unisys* 31,300 595
----------
49,670
----------
CONSUMER PRODUCTS--0.0%
Tupperware 7,600 202
----------
CONTAINERS & PACKAGING--0.3%
Ball 3,800 124
Bemis 6,600 298
Crown Cork & Seal 16,100 861
Newell 20,000 969
Owens-Illinois* 17,600 761
----------
3,013
----------
DRUGS--9.4%
Abbott Laboratories 95,900 7,222
Allergan 8,200 312
Alza, Cl A* 10,700 479
American Home Products 81,500 7,773
Amgen* 33,000 2,009
Bristol-Myers Squibb 124,700 13,008
Eli Lilly 139,100 8,294
Johnson & Johnson 168,600 12,360
Merck 150,200 19,282
Pfizer 162,200 16,169
Pharmacia & Upjohn 63,600 2,783
Schering Plough 91,800 7,499
Warner Lambert 34,100 5,808
----------
102,998
----------
ELECTRICAL SERVICES--2.5%
Ameren 17,200 725
American Electric Power 23,800 1,196
Baltimore Gas & Electric 18,500 605
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
60
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
Carolina Power & Light 18,900 $ 855
Central & South West 26,600 712
Cinergy 19,800 733
Consolidated Edison 29,500 1,379
Dominion Resources of Virginia 24,300 1,021
DTE Energy 18,200 715
Duke Power 45,100 2,686
Edison International 47,800 1,404
Entergy 30,600 910
FirstEnergy 28,900 890
FPL Group 22,800 1,465
GPU 15,900 704
Houston Industries 35,400 1,018
Niagara Mohawk Power* 18,100 235
Northern States Power 9,300 549
Pacificorp 37,200 916
PECO Energy 27,900 617
PG&E 55,000 1,815
PP&L Resources 20,800 491
Public Service Enterprise Group 29,100 1,102
Southern 86,500 2,395
Texas Utilities 30,900 1,215
Unicom 27,100 949
----------
27,302
----------
ENTERTAINMENT--0.9%
Harrah's Entertainment* 12,700 312
King World Productions* 9,200 269
Mirage Resorts* 22,500 547
Walt Disney 84,700 9,042
----------
10,170
----------
ENVIRONMENTAL SERVICES--0.2%
Browning Ferris Industries 24,300 793
Waste Management 57,100 1,759
----------
2,552
----------
FINANCIAL SERVICES--3.2%
American Express 58,300 5,353
Beneficial 6,700 833
Charles Schwab 33,300 1,265
Countrywide Credit Industries 13,600 723
Equifax 18,800 686
FHLMC 87,100 4,132
FNMA 133,000 8,412
Green Tree Financial 17,100 486
Household International 13,400 1,846
Lehman Brothers Holding 12,800 958
Merrill Lynch 41,800 3,469
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
Morgan Stanley, Dean Witter, Discover 74,300 $ 5,415
Providian Financial* 11,900 684
Transamerica 7,900 920
----------
35,182
----------
FOOD, BEVERAGE & TOBACCO--7.2%
Adolph Coors, Cl B 4,600 161
Anheuser Busch 61,400 2,844
Archer Daniels Midland 71,600 1,571
Brown Forman, Cl B 8,700 479
Campbell Soup 57,200 3,246
Coca Cola 310,100 24,013
ConAgra 59,600 1,915
Fortune Brands 21,500 857
General Mills 19,800 1,505
H.J. Heinz 45,800 2,674
Hershey Foods 17,900 1,282
Kellogg 51,500 2,221
PepsiCo 190,200 8,119
Philip Morris 304,000 12,673
Quaker Oats 17,400 996
Ralston-Ralston Purina Group 13,400 1,420
Sara Lee 59,300 3,654
Seagram 44,700 1,707
Unilever 80,300 5,511
UST 23,100 745
Vlasic Foods International* 5,720 146
William Wrigley Jr 14,500 1,185
----------
78,924
----------
GAS/NATURAL GAS--0.6%
Coastal 13,300 866
Columbia Gas Systems 7,000 544
Consolidated Natural Gas 12,000 692
Eastern Enterprises 2,600 112
Enron 39,000 1,809
Nicor 6,100 258
Oneok 3,900 159
Pacific Enterprises 10,500 429
Peoples Energy 4,400 160
Sonat 13,800 600
Williams 40,100 1,283
----------
6,912
----------
GLASS PRODUCTS--0.1%
Corning 29,000 1,283
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
61
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
HOME APPLIANCES--0.3%
Maytag 11,900 $ 569
National Service Industries 5,400 318
Raychem 10,600 441
Sherwin Williams 21,700 770
Snap-On Tools 7,600 347
Thomas & Betts 6,900 442
Whirlpool 9,400 644
----------
3,531
----------
HOTELS & LODGING--0.2%
Hilton Hotels 31,400 1,001
Marriott International* 16,000 595
Marriott International, Cl A* 16,000 573
Sodexho Marriott Services 4,000 106
----------
2,275
----------
HOUSEHOLD PRODUCTS--0.9%
Clorox 13,000 1,114
Gillette 70,200 8,332
Stanley Works 11,200 624
----------
10,070
----------
INSURANCE--5.0%
Aetna 18,600 1,552
Allstate 53,800 4,946
American General 31,800 2,057
American International Group 88,000 11,083
Aon 21,000 1,360
Chubb 21,300 1,669
Cigna 9,300 1,907
Cincinnati Financial 6,900 864
Conseco 23,600 1,336
General Re 9,800 2,162
Hartford Financial Services Group 14,800 1,606
Jefferson-Pilot 8,900 792
Lincoln National 12,800 1,086
Loew's 14,400 1,501
Marsh & McLennan 21,300 1,860
MBIA 12,300 953
MGIC Investment 14,300 939
Progressive 9,100 1,226
Safeco 17,700 967
St. Paul 10,500 936
Sunamerica 24,500 1,173
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
Torchmark 17,600 $ 806
Travelers Group 143,800 8,628
United Healthcare 23,600 1,528
Unum 17,400 960
USF&G 14,100 352
----------
54,249
----------
LEISURE--0.1%
Brunswick 12,500 436
Jostens 4,900 118
----------
554
----------
LUMBER & WOOD PRODUCTS--0.0%
Louisiana Pacific 13,700 319
----------
MACHINERY--5.3%
Aeroquip-Vickers 3,500 202
Applied Materials* 45,900 1,621
Baker Hughes 21,200 853
Black & Decker 11,900 631
Briggs & Stratton 3,100 142
Case Equipment 9,400 640
Caterpillar 46,700 2,571
Cincinnati Milacron 5,000 159
Crane 5,800 307
Cummins Engine 4,800 265
Deere 31,300 1,939
Dover 27,900 1,060
Dresser Industries 22,000 1,057
Emerson Electric 55,600 3,624
General Electric 410,400 35,371
General Signal 6,200 290
Harnischfeger Industries 6,000 205
Ingersoll Rand 20,800 997
McDermott International 7,100 293
Nacco Industries, Cl A 1,000 134
Pall 15,600 335
Parker Hannifin 13,900 712
Tenneco 21,300 909
Timken 7,900 267
Tyco International 71,700 3,917
----------
58,501
----------
MEASURING DEVICES--0.4%
Honeywell 16,000 1,323
Johnson Controls 10,600 643
KLA Instruments* 10,500 402
Millipore 5,500 191
Perkin Elmer 6,100 441
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
62
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
Tektronix 6,300 $ 281
Thermo Electron* 19,000 767
----------
4,048
----------
MEDICAL PRODUCTS & SERVICES--1.6%
Bausch & Lomb 6,900 315
Baxter International 35,100 1,935
Becton Dickinson 15,300 1,041
Biomet* 14,000 420
Boston Scientific* 24,400 1,647
C.R. Bard 7,100 261
Columbia/HCA Healthcare 81,200 2,619
Guidant 18,900 1,387
Healthsouth Rehabilitation* 49,400 1,386
Humana* 20,500 509
Mallinckrodt 9,200 363
Manor Care 8,000 296
Medtronic 58,800 3,050
St. Jude Medical 10,500 351
Tenet Healthcare* 38,400 1,394
United States Surgical 9,500 314
----------
17,288
----------
METALS & MINING--0.1%
Cyprus AMAX Minerals 11,700 195
Freeport-McMoran Copper & Gold, Cl B 24,200 482
----------
677
----------
MISCELLANEOUS BUSINESS SERVICES--4.8%
3Com* 44,500 1,599
Adobe Systems 8,600 389
Autodesk 5,800 250
Automatic Data Processing 37,500 2,552
Cendant* 101,600 4,026
Computer Associates International 68,500 3,956
Computer Sciences* 19,500 1,073
First Data 53,700 1,745
HBO 26,400 1,594
Microsoft* 305,300 27,324
Novell* 44,000 472
Oracle* 123,400 3,895
Parametric Technology* 32,200 1,073
Safety Kleen 7,100 201
Shared Medical Systems 3,100 243
Sun Microsystems* 47,300 1,973
----------
52,365
----------
MISCELLANEOUS CONSUMER SERVICES--0.2%
H & R Block 13,200 628
Service International 31,600 1,341
----------
1,969
----------
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
OFFICE PRODUCTS & SUPPLIES--0.1%
IKON Office Solutions 16,900 $ 584
----------
OIL-DOMESTIC--0.8%
Ashland Oil 9,400 532
Atlantic Richfield 40,200 3,161
Kerr-McGee 6,000 417
Pennzoil 6,000 388
Phillips Petroleum 33,000 1,648
Sun 9,000 368
Unocal 30,900 1,195
USX-Marathon Group 36,200 1,362
----------
9,071
----------
OIL-INTERNATIONAL--5.5%
Amerada Hess 11,500 671
Amoco 61,100 5,278
Chevron 82,300 6,610
Exxon 309,200 20,910
Mobil 98,400 7,540
Royal Dutch Petroleum 268,900 15,277
Texaco 68,700 4,139
----------
60,425
----------
PAPER & PAPER PRODUCTS--1.6%
Avery Dennison 12,900 689
Boise Cascade 7,000 252
Champion International 12,100 657
Fort James 26,200 1,200
Georgia Pacific 11,600 751
International Paper 37,900 1,774
Kimberly-Clark 69,700 3,494
Mead 13,100 469
Minnesota Mining & Manufacturing 51,200 4,669
Potlatch 3,600 155
Stone Container 12,500 156
Temple Inland 7,100 441
Union Camp 8,700 520
Westvaco 12,800 394
Weyerhaeuser 25,000 1,413
Willamette Industries 13,900 522
----------
17,556
----------
PETROLEUM & FUEL PRODUCTS--0.9%
Anadarko Petroleum 7,500 518
Apache 12,000 441
Burlington Resources 22,100 1,059
Helmerich & Payne 6,300 197
Occidental Petroleum 42,500 1,246
Oryx Energy* 13,300 346
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
63
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
Rowan* 10,900 $ 316
Schlumberger 62,400 4,727
Union Pacific Resources Group 31,800 759
Western Atlas* 6,800 526
----------
10,135
----------
PHOTOGRAPHIC EQUIPMENT & SUPPLIES--0.7%
Eastman Kodak 40,700 2,640
Polaroid 5,600 246
Xerox 40,900 4,353
----------
7,239
----------
PRECIOUS METALS--0.2%
Barrick Gold 46,700 1,010
Battle Mountain Gold 28,800 184
Homestake Mining 18,400 200
Newmont Mining 19,600 599
Placer Dome Group 31,000 409
----------
2,402
----------
PRINTING & PUBLISHING--1.3%
American Greetings, Cl A 9,100 419
Deluxe 10,200 336
Dow Jones 12,100 641
Gannett 35,600 2,559
John H. Harland 3,900 61
Knight-Ridder 10,600 592
McGraw-Hill 12,400 943
Meredith 6,600 278
Moore 11,100 185
New York Times, Cl A 12,000 840
R.R. Donnelley & Sons 18,300 751
Time Warner 72,500 5,220
Times Mirror, Cl A 11,100 703
Tribune 15,400 1,086
----------
14,614
----------
PROFESSIONAL SERVICES--0.2%
Cognizant 20,300 1,165
Dun & Bradstreet 21,300 728
EG&G 5,700 166
----------
2,059
----------
RAILROADS--0.7%
Burlington Northern Santa Fe 19,600 2,038
CSX 27,400 1,630
Norfolk Southern 47,300 1,768
Union Pacific 31,000 1,742
----------
7,178
----------
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
REPAIR SERVICES--0.0%
Midas* (3) 1 $ --
Ryder System 9,600 365
----------
365
----------
RETAIL--5.8%
Albertson's 30,800 1,621
American Stores 34,300 892
Autozone* 19,100 647
Charming Shoppes* 13,300 63
Circuit City Stores 12,400 530
Consolidated Stores* 13,500 580
Costco* 26,900 1,436
CVS 21,600 1,631
Darden Restaurants 18,600 289
Dayton Hudson 27,400 2,411
Dillards Incorporated, Cl A 13,900 513
Federated Department Stores* 26,300 1,363
Gap 49,600 2,232
Giant Food, Cl A 7,500 290
Great Atlantic & Pacific Tea 4,800 145
Harcourt General 8,900 493
Hasbro 15,900 561
Home Depot 91,700 6,184
J.C. Penney 31,300 2,369
Kmart* 61,200 1,021
Kroger* 32,000 1,478
Limited 34,200 981
Longs Drug Stores 4,800 146
Lowe's 21,900 1,537
Mattel 36,500 1,446
May Department Stores 29,000 1,842
McDonald's 86,400 5,184
Mercantile Stores 4,600 309
Nordstrom 9,700 619
Pep Boys-Manny, Moe & Jack 8,000 186
Rite Aid 32,300 1,106
Sears Roebuck 49,200 2,826
TJX 20,200 914
Toys 'R' Us* 35,600 1,070
Tricon Global Restaurants* 19,000 571
Wal-Mart Stores 281,600 14,309
Walgreen 62,100 2,185
Wendy's International 16,600 370
Winn Dixie Stores 18,600 863
Woolworth* 16,900 423
----------
63,636
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
64
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
RUBBER & PLASTIC--0.6%
Armstrong World Industries 5,100 $ 441
Cooper Tire & Rubber 9,900 235
Goodyear Tire & Rubber 19,600 1,485
Illinois Tool Works 31,300 2,027
Nike, Cl B 36,400 1,611
Rubbermaid 18,800 536
----------
6,335
----------
SEMI-CONDUCTORS/INSTRUMENTS--2.1%
Advanced Micro Devices* 17,800 517
AMP 27,600 1,209
Intel 205,100 16,011
LSI Logic* 17,800 449
Micron Technology* 26,500 770
National Semiconductor* 20,600 431
Rockwell International 25,200 1,446
Texas Instruments 48,900 2,647
----------
23,480
----------
SPECIALTY CONSTRUCTION--0.1%
Masco 20,700 1,232
----------
SPECIALTY MACHINERY--0.4%
CBS* 89,200 3,027
Cooper Industries 15,200 903
----------
3,930
----------
STEEL & STEEL WORKS--0.6%
Alcan Aluminium 28,500 891
Allegheny Teledyne* 21,900 609
Aluminum Company of America 21,600 1,486
Armco* 13,500 79
Asarco 5,100 136
Bethlehem Steel* 14,100 191
Engelhard 18,100 344
Inco 20,900 391
Inland Steel Industries 6,100 169
Nucor 11,000 599
Phelps Dodge 7,400 478
Reynolds Metals 9,300 571
USX-U.S. Steel Group 10,800 408
Worthington Industries 12,100 219
----------
6,571
----------
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION Shares/Par (000) Value (000)
- --------------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATION--8.2%
Airtouch Communications* 63,300 $ 3,098
Alltel 23,100 1,009
Ameritech 137,200 6,783
AT&T 203,700 13,368
Bell Atlantic 97,400 9,984
BellSouth 124,300 8,398
Frontier 20,600 671
GTE 120,100 7,191
Lucent Technologies 81,600 10,435
MCI Communications 87,300 4,321
SBC Communications 229,900 10,029
Sprint 53,900 3,648
U.S. West 60,600 3,318
U.S. West Media Group* 76,100 2,644
WorldCom* 127,000 5,469
----------
90,366
----------
TRANSPORTATION--0.1%
Laidlaw 41,200 654
----------
WHOLESALE--0.4%
Cardinal Health 13,800 1,217
Genuine Parts 22,400 854
Sigma Aldrich 12,600 469
SUPERVALU 7,500 350
Sysco 42,600 1,092
W.W. Grainger 6,200 637
----------
4,619
----------
TOTAL COMMON STOCKS
(Cost $666,690) 1,081,338
----------
TREASURY BILL--0.2%
U.S. Treasury Bill
4.976%, 06/18/98 (A) $ 2,000 1,978
----------
TOTAL TREASURY BILL
(Cost $1,979) 1,978
----------
RELATED PARTY MONEY MARKET FUND--0.8%
First American Prime Obligations Fund (B) 9,594,211 9,594
----------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $9,594) 9,594
----------
TOTAL INVESTMENTS--99.6%
(Cost $678,263) 1,092,910
----------
OTHER ASSETS AND LIABILITIES, NET--0.4% (C) 3,849
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
65
EQUITY INDEX FUND (CONCLUDED)
DESCRIPTION Value (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares -- Class Y
($.0001 par value -- 2 billion authorized)
based on 45,916,754 outstanding shares $ 600,569
Portfolio Shares -- Retail Class A
($.0001 par value -- 2 billion authorized)
based on 1,660,856 outstanding shares 29,554
Portfolio Shares -- Retail Class B
($.0001 par value -- 2 billion authorized)
based on 1,649,829 outstanding shares 29,032
Undistributed net investment income 208
Accumulated net realized gain on investments 22,708
Net unrealized appreciation of investments 414,688
----------
TOTAL NET ASSETS--100.0% $1,096,759
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--CLASS Y $ 22.28
----------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE--RETAIL CLASS A $ 22.30
MAXIMUM SALES CHARGE OF 4.50% (1) 1.05
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 23.35
----------
NET ASSET VALUE AND OFFERING
PRICE PER SHARE--RETAIL CLASS B (2) $ 22.18
----------
* 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.
(3) Total Market Value = $21
(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 also the notes to the financial
statements.
(C) Other assets and liabilities representing greater than five percent of
total net assets include the following (000):
Cash collateral received for securities on loan $ 375,695
Payable upon return of securities on loan $(375,695)
Cl--Class
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
LARGE CAP VALUE FUND
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
COMMON STOCKS--88.9%
AEROSPACE & DEFENSE--1.3%
Raytheon Company, Cl A 391,040 $ 22,240
----------
APPAREL/TEXTILES--1.2%
Fruit of the Loom, Cl A* 633,000 19,386
----------
AUTOMOTIVE--1.0%
General Motors 256,100 17,271
----------
BANKS--7.5%
BankBoston 326,900 36,041
Charter One Financial 21,829 1,461
Chase Manhattan 237,400 32,019
Citicorp 245,700 34,889
CoreStates Financial 76,800 6,893
First Union 64,000 3,632
Mellon Bank 93,900 5,963
NationsBank 59,300 4,325
----------
125,223
----------
CHEMICALS--2.2%
PPG Industries 549,600 37,338
----------
COMMUNICATIONS EQUIPMENT--1.7%
Nokia, ADR 270,100 29,154
----------
COMPUTER COMMUNICATIONS EQUIPMENT--1.6%
3Com* 739,600 26,579
----------
COMPUTERS & SERVICES--4.4%
IBM 437,378 45,433
Seagate Technology* 1,085,900 27,419
----------
72,852
----------
CONTAINERS & PACKAGING--1.1%
Bemis 408,600 18,438
----------
DRUGS--4.7%
American Home Products 312,000 29,757
Bristol-Myers Squibb 136,200 14,207
Pharmacia & Upjohn 789,200 34,528
----------
78,492
----------
EXPLORATION/DRILLING--2.1%
Diamond Offshore Drilling 411,500 18,672
Global Marine* 192,100 4,754
Newfield Exploration* 157,300 4,100
R & B Falcon* 164,020 4,859
Union Pacific Resources Group 93,800 2,239
----------
34,624
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
66
LARGE CAP VALUE FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
FINANCIAL SERVICES--2.8%
American Express 139,700 $ 12,826
Bear Stearns 86,610 4,450
Beneficial 34,400 4,276
FNMA 97,300 6,154
Household International 135,500 18,665
----------
46,371
----------
FOOD, BEVERAGE & TOBACCO--4.3%
ConAgra 867,100 27,856
Dole Food 174,700 8,451
Sara Lee 579,100 35,687
----------
71,994
----------
INSURANCE--6.4%
AMBAC 495,700 28,967
Cigna 172,000 35,260
Conseco 51,064 2,892
General Re 80,000 17,650
TIG Holdings 451,000 11,867
Travelers Group 167,299 10,038
----------
106,674
----------
LEISURE--1.8%
Brunswick 854,200 29,790
----------
MACHINERY--1.8%
Black & Decker 65,000 3,449
Case Equipment 394,800 26,896
----------
30,345
----------
MEDICAL PRODUCTS & SERVICES--7.2%
Aetna 352,500 29,412
Columbia/HCA Healthcare 1,310,200 42,254
Foundation Health Systems, Cl A* 253,940 6,999
Sun Healthcare Group* 585,600 10,907
Tenet Healthcare* 112,000 4,067
United Healthcare 403,500 26,127
----------
119,766
----------
MISCELLANEOUS BUSINESS SERVICES--3.3%
Computer Associates International 516,100 29,805
Sun Microsystems* 620,400 25,882
----------
55,687
----------
MULTI-INDUSTRY--0.7%
Minnesota Mining & Manufacturing 120,200 10,961
----------
LARGE CAP VALUE FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
OFFICE PRODUCTS & SUPPLIES--1.5%
IKON Office Solutions 707,900 $ 24,467
----------
OIL-INTERNATIONAL--9.1%
Elf Aquitaine, ADR 575,000 37,231
Exxon 445,500 30,127
Mobil 345,400 26,466
Royal Dutch Petroleum 528,900 30,048
Texaco 451,800 27,221
----------
151,093
----------
PAPER & PAPER PRODUCTS--1.5%
Kimberly-Clark 495,400 24,832
----------
RAILROADS--3.2%
Burlington Northern Santa Fe 255,300 26,551
Union Pacific 487,100 27,369
----------
53,920
----------
REAL ESTATE INVESTMENT TRUSTS--3.6%
Duke Realty Investments 501,700 12,229
Equity Residential Properties Trust 353,400 17,758
Simon Debartolo Group 768,300 26,314
Meditrust 134,129 4,141
----------
60,442
----------
RETAIL--4.0%
Federated Department Stores* 98,600 5,109
Sears Roebuck 568,400 32,647
Toys `R' Us* 963,100 28,953
----------
66,709
----------
SPECIALTY CONSTRUCTION--1.0%
Masco 276,300 16,440
----------
TELEPHONES & TELECOMMUNICATION--5.9%
AT&T 256,500 16,833
Bell Atlantic 326,756 33,493
Deutsche Telekom, ADR 1,384,900 30,468
SBC Communications 262,800 11,465
Sprint 84,300 5,706
----------
97,965
----------
UTILITIES--0.9%
Entergy 285,200 8,485
Southern 254,200 7,038
----------
15,523
----------
WHOLESALE--1.1%
W.W. Grainger 174,700 17,961
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
67
LARGE CAP VALUE FUND (CONCLUDED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $1,095,635) $1,482,537
----------
RELATED PARTY MONEY MARKET FUNDS--11.2%
First American Government
Obligations Fund (A) 80,884,556 80,885
First American Prime
Obligations Fund (A) 105,009,157 105,009
----------
TOTAL RELATED PARTY MONEY MARKET FUNDS
(Cost $185,894) 185,894
----------
TOTAL INVESTMENTS--100.1%
(Cost $1,281,529) 1,668,431
----------
OTHER ASSETS AND LIABILITIES, NET--(0.1%) (B) (1,413)
----------
NET ASSETS:
Portfolio Shares -- Class Y
($.0001 par value -- 2 billion authorized)
based on 56,689,858 outstanding shares 1,007,298
Portfolio Shares -- Retail Class A
($.0001 par value -- 2 billion authorized)
based on 2,910,000 outstanding shares 64,045
Portfolio Shares -- Retail Class B
($.0001 par value -- 2 billion authorized)
based on 2,521,000 outstanding shares 56,735
Undistributed net investment income 338
Accumulated net realized gain on investments 151,700
Net unrealized appreciation of investments 386,902
----------
TOTAL NET ASSETS--100.0% $1,667,018
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--CLASS Y $ 26.85
----------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE--RETAIL CLASS A $ 26.81
MAXIMUM SALES CHARGE OF 4.50% (1) 1.26
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 28.07
----------
NET ASSET VALUE AND OFFERING
PRICE PER SHARE--RETAIL CLASS B (2) $ 26.60
----------
* 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 also the notes to the financial
statements.
(B) Other assets and liabilities representing greater than five percent of
total net assets include the following (000):
Cash collateral received for securities on loan $ 398,942
Payable upon return of securities on loan $(398,942)
ADR--American Depository Receipt
Cl--Class
FNMA--Federal National Mortgage Association
LARGE CAP GROWTH FUND
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
COMMON STOCKS--92.1%
AIRCRAFT--1.2%
Boeing 173,750 $ 9,057
----------
AUTOMOTIVE--2.7%
Ford Motor 328,000 21,258
----------
BANKS--11.2%
Bank of New York 143,000 8,982
BankAmerica 200,000 16,525
Citicorp 81,200 11,530
First American Bank 132,850 11,492
First Union 275,000 15,606
Mellon Bank 240,000 15,240
Washington Mutual 108,000 7,746
----------
87,121
----------
CHEMICALS--2.2%
E.I. du Pont de Nemours 254,000 17,272
----------
COMMUNICATIONS EQUIPMENT--5.7%
Ascend Communications* 226,100 8,564
Nokia, ADR 193,000 20,832
----------
29,396
----------
COMPUTERS & SERVICES--3.8%
3Com* 258,150 9,277
Cisco Systems* 413,250 28,256
Danka Business Systems, ADR 400,000 7,350
----------
44,883
----------
DRUGS--7.8%
Abbott Laboratories 224,000 16,870
Johnson & Johnson 242,150 17,753
Pfizer 260,000 25,919
----------
60,542
----------
ELECTRICAL SERVICES--1.2%
Texas Utilities 229,000 9,003
----------
ENERGY & POWER--0.9%
Thermo Electron* 181,000 7,308
----------
ENTERTAINMENT--1.3%
Cox Communications* 247,000 10,374
----------
FINANCIAL SERVICES--5.7%
American Express 163,400 15,002
FNMA 316,700 20,031
Morgan Stanley, Dean Witter, Discover 132,550 9,660
----------
44,693
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
68
LARGE CAP GROWTH FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO--4.7%
PepsiCo 276,000 $ 11,782
Philip Morris 312,000 13,006
Sara Lee 194,000 11,955
----------
36,743
----------
GAS/NATURAL GAS--1.6%
Enron 270,000 12,521
----------
HOUSEHOLD PRODUCTS--1.9%
Newell 310,000 15,016
----------
MACHINERY--3.1%
Case Equipment 164,000 11,172
General Electric 147,000 12,670
----------
23,842
----------
MEDICAL PRODUCTS & SERVICES--6.5%
Boston Scientific* 108,000 7,290
Columbia/HCA Healthcare 312,000 10,062
Medtronic 220,000 11,412
St. Jude Medical 203,000 6,788
United Healthcare 228,000 14,763
----------
50,315
----------
MISCELLANEOUS BUSINESS SERVICES--6.0%
Accustaff* 240,000 8,280
Microsoft* 163,600 14,642
Oracle* 443,774 14,007
Sungard Data Systems* 267,700 9,855
----------
46,784
----------
OIL-INTERNATIONAL--5.5%
Amoco 126,000 10,883
Exxon 210,340 14,224
Mobil 234,400 17,961
----------
43,068
----------
PAPER & PAPER PRODUCTS--2.5%
Kimberly-Clark 225,000 11,278
Weyerhaeuser 138,500 7,825
----------
19,103
----------
PETROLEUM & FUEL PRODUCTS--2.0%
Diamond Offshore Drilling 158,000 7,169
Schlumberger 113,200 8,575
----------
15,744
----------
PHARMACEUTICAL--2.1%
Biochem Pharmaceuticals* 676,000 16,351
----------
LARGE CAP GROWTH FUND (CONTINUED)
DESCRIPTION Shares/Par (000) Value (000)
- --------------------------------------------------------------------------------
RAILROADS--1.6%
Union Pacific 218,900 $ 12,299
----------
REAL ESTATE INVESTMENT TRUSTS--2.6%
National Golf Properties 159,000 5,068
Simon Debartolo Group 451,260 15,456
----------
20,524
----------
RETAIL--2.8%
Autozone* 265,000 8,977
Intimate Brands 487,000 13,179
----------
22,156
----------
SEMI-CONDUCTORS/INSTRUMENTS--1.4%
Intel 141,000 11,007
----------
SERVICES-PREPACKAGED SOFTWARE--1.7%
Peoplesoft* 252,000 13,277
----------
TELEPHONES & TELECOMMUNICATION--2.4%
Airtouch Communications* 165,500 8,099
L.M. Ericsson Telephone, ADR 227,200 10,806
----------
18,905
----------
TOTAL COMMON STOCKS
(Cost $380,202) 718,562
----------
PREFERRED STOCKS--2.0%
Airtouch Communications 284,800 15,964
----------
TOTAL PREFERRED STOCKS
(Cost $11,640) 15,964
----------
CONVERTIBLE BONDS--0.8%
Danka Business, 34.3348 Shares
6.750%, 04/01/02 $ 6,600 6,311
----------
TOTAL CONVERTIBLE BONDS
(Cost $8,765) 6,311
----------
RELATED PARTY MONEY MARKET FUND--6.0%
First American Prime
Obligations Fund (A) 46,749,701 46,750
----------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $46,750) 46,750
----------
TOTAL INVESTMENTS--100.9%
(Cost $447,357) 787,587
----------
OTHER ASSETS AND LIABILITIES, NET--(0.9%) (B) (7,086)
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
69
LARGE CAP GROWTH FUND (CONCLUDED)
DESCRIPTION Value (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares -- Class Y
($.0001 par value -- 2 billion authorized)
based on 41,105,429 outstanding shares $ 386,489
Portfolio Shares -- Retail Class A
($.0001 par value -- 2 billion authorized)
based on 1,069,858 outstanding shares 15,138
Portfolio Shares -- Retail Class B
($.0001 par value -- 2 billion authorized)
based on 626,732 outstanding shares 8,308
Undistributed net investment income 151
Accumulated net realized gain on investments 30,185
Net unrealized appreciation of investments 340,230
----------
TOTAL NET ASSETS--100.0% $ 780,501
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--CLASS Y $ 18.24
----------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE--RETAIL CLASS A $ 18.20
MAXIMUM SALES CHARGE OF 4.50% (1) 0.86
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 19.06
----------
NET ASSET VALUE AND OFFERING
PRICE PER SHARE--RETAIL CLASS B (2) $ 18.01
----------
* 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) 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 also the notes to the financial
statements.
(B) Other assets and liabilities representing greater than five percent of
total net assets include the following (000):
Cash collateral received for securities on loan $ 276,084
Payable upon return of securities on loan $(276,084)
ADR--American Depository Receipt
Cl--Class
FNMA--Federal National Mortgage Association
MID CAP VALUE FUND
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
COMMON STOCKS--95.7%
APPAREL/TEXTILES--2.8%
Fila Holdings, ADR 224,100 $ 5,252
Fruit of the Loom, Cl A* 510,000 15,619
----------
20,871
----------
AUTOMOTIVE--1.3%
Tower Automotive* 208,000 9,360
----------
BANKS--3.7%
First American of Tennessee 359,600 17,620
Golden West Financial 94,600 9,064
----------
26,684
----------
CHEMICALS--4.1%
Airgas* 794,500 13,705
Lyondell Petrochemical 189,300 6,448
Millenium Chemicals 287,100 9,618
----------
29,771
----------
COMMUNICATIONS EQUIPMENT--2.0%
ADC Telecommunications* 283,800 7,822
DSC Communications* 378,400 6,882
----------
14,704
----------
COMPUTER COMMUNICATIONS EQUIPMENT--1.7%
Cabletron Systems* 850,600 12,387
----------
COMPUTERS & SERVICES--7.5%
Bay Networks* 615,100 16,685
Danka Business Systems, ADR 378,400 6,953
Micron Electronics* 756,100 9,593
Quantum* 993,700 21,178
----------
54,409
----------
CONSUMER PRODUCTS--2.1%
Premark International 472,900 15,665
----------
ELECTRICAL SERVICES--4.0%
DPL 406,000 7,917
LG&E Energy 274,300 7,080
PP&L Resources 378,400 8,940
Teco 189,200 5,345
----------
29,282
----------
ENTERTAINMENT--1.4%
Grand Casinos* 586,700 10,011
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
70
MID CAP VALUE FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
FINANCIAL SERVICES--4.9%
Advanta, Cl B 340,800 $ 7,157
Cit Group, Cl A 227,100 7,409
Firstplus Financial Group* 265,000 11,130
Waddell & Reed Financial, Cl A* 378,400 9,838
----------
35,534
----------
FOOD, BEVERAGE & TOBACCO--5.0%
Canandaigua Wine, Cl A* 94,500 5,398
Dole Food 246,000 11,900
Fresh Delmonte Produce* 709,700 10,912
International Multifoods 283,900 8,499
----------
36,709
----------
HOTELS & LODGING--2.6%
Circus Circus Enterprises* 283,800 5,960
LaQuinta Inns 613,500 12,883
----------
18,843
----------
INSURANCE--1.4%
Nationwide Financial Services 227,100 9,850
----------
LEISURE--1.5%
Callaway Golf 378,400 10,974
----------
MACHINERY--3.2%
Black & Decker 285,900 15,171
Howmet International Inc* 472,600 8,448
----------
23,619
----------
MEDICAL PRODUCTS & SERVICES--7.2%
Integrated Health Services 369,000 14,506
Medpartners* 945,900 9,695
Trigon Healthcare* 378,300 11,373
United States Surgical 510,900 16,860
----------
52,434
----------
METALS & MINING--1.6%
IMC Global 300,900 11,453
----------
MISCELLANEOUS BUSINESS SERVICES--1.8%
Olsten 792,600 12,582
----------
OFFICE PRODUCTS & SUPPLIES--1.3%
IKON Office Solutions 283,800 9,809
----------
OIL-DOMESTIC--3.0%
Kerr-McGee 160,300 11,151
USX-Marathon Group 283,800 10,678
----------
21,829
----------
PETROLEUM & FUEL PRODUCTS--7.0%
Oryx Energy* 359,100 9,337
Rowan* 473,100 13,720
MID CAP VALUE FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
Santa Fe International 378,400 $ 14,356
Varco International* 520,600 13,405
----------
50,818
----------
PRINTING & PUBLISHING--1.8%
American Greetings, Cl A 283,600 13,046
----------
REAL ESTATE INVESTMENT TRUSTS--8.6%
Amb Property 383,000 9,240
Equity Office Properties Trust 207,700 6,361
Glimcher Realty Trust 415,300 9,085
Patriot American Hospitality 567,600 15,325
Simon DeBartolo Group 425,600 14,577
Trizec Hahn 329,800 7,771
----------
62,359
----------
RETAIL--7.4%
Brinker International* 662,100 14,483
CompUSA* 662,100 17,215
Lone Star Steakhouse & Saloon* 662,400 15,028
Petsmart* 662,300 7,078
----------
53,804
----------
SEMI-CONDUCTORS/INSTRUMENTS--1.9%
VLSI Technology* 757,000 14,194
----------
SPECIALTY MACHINERY--2.6%
American Standard* 416,200 19,093
----------
TRUCKING--2.3%
CNF Transportation 473,200 17,006
----------
TOTAL COMMON STOCKS
(Cost $591,459) 697,100
----------
OPTIONS--(2.4%)
Standard & Poors Mid-Cap 400 Index,
May 320 Call (3,300) (17,573)
----------
TOTAL OPTIONS
(Cost ($15,940)) (17,573)
----------
RELATED PARTY MONEY MARKET FUND--6.1%
First American Prime
Obligations Fund (A) 44,582,038 44,582
----------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $44,582) 44,582
----------
TOTAL INVESTMENTS--99.4%
(Cost $620,101) 724,109
----------
OTHER ASSETS AND LIABILITIES, NET--0.6% (B) 4,311
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
71
MID CAP VALUE FUND (CONCLUDED)
DESCRIPTION Value (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares -- Class Y
($.0001 par value --- 2 billion authorized)
based on 27,423,673 outstanding shares $ 488,779
Portfolio Shares -- Retail Class A
($.0001 par value -- 2 billion authorized)
based on 1,997,056 outstanding shares 37,475
Portfolio Shares -- Retail Class B
($.0001 par value -- 2 billion authorized)
based on 2,082,825 outstanding shares 41,236
Undistributed net investment income 336
Accumulated net realized gain on investments 56,586
Net unrealized appreciation of investments 104,008
----------
TOTAL NET ASSETS--100.0% $ 728,420
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--CLASS Y $ 23.15
----------
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) $ 22.80
----------
* Non-income producing security
(1) The offer price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 4.50%.
(2) Retail Class B has a contingent deferred sales charge. For a description of
possible redemption charge, see the notes to the financial statements.
(A) This money market fund is advised by First Bank National Association who
also serves as Adviser for this Fund. See also the notes to the financial
statements.
(B) Other assets and liabilities representing greater than five percent of
total net assets include the following (000):
Cash collateral received for securities on loan $ 180,028
Payable upon return of securities on loan $(180,028)
ADR--American Depository Receipt
Cl--Class
REGIONAL EQUITY FUND
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
INVESTMENTS IN SECURITIES OF
UNAFFILIATED ISSUERS--83.0%
COMMON STOCKS UNAFFILIATED ISSUERS--83.0%
APPAREL/TEXTILES--1.0%
Ashworth* 251,400 $ 4,305
----------
AUTOMOTIVE--5.8%
Dura Automotive Systems* 163,900 5,265
Tower Automotive* 340,000 15,300
SPX 55,000 4,197
----------
24,762
----------
BANKS--6.0%
Community First Bankshares 300,000 15,300
TCF Financial 300,000 10,181
----------
25,481
----------
BATTERIES & BATTERY SYSTEMS--0.4%
Bolder Technologies* 170,200 1,553
----------
CHEMICALS--1.2%
W.H. Brady 149,500 5,008
----------
COMMUNICATIONS EQUIPMENT--6.3%
Communications Systems 440,700 7,519
Digi International* 270,500 7,456
JPM* 53,000 782
Mosaix* 604,800 7,106
Onelink Communications* 97,900 73
Premis* 152,200 200
Transcrypt International* 328,000 3,588
----------
26,724
----------
COMPUTERS & SERVICES--1.5%
Check Technology* 147,500 767
MAPICS* 310,000 5,483
----------
6,250
----------
ENTERTAINMENT--2.3%
Grand Casinos* 290,000 4,948
Lodgenet Entertainment* 400,000 4,663
----------
9,611
----------
FOOD, BEVERAGE & TOBACCO--3.4%
International Multifoods 207,900 6,224
Michael Foods 302,600 8,095
----------
14,319
----------
GAS/NATURAL GAS--1.7%
Western Gas Resources 379,800 7,216
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
72
REGIONAL EQUITY FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
INSURANCE--4.1%
Amerin* 440,800 $ 13,279
MMI 187,300 4,507
----------
17,786
----------
MACHINERY--13.5%
Alliant Techsystems* 81,200 5,095
Applied Power 460,600 17,733
BMC Industries 187,100 3,637
Donaldson 472,600 12,169
Idex 218,100 7,933
Pentair 250,000 11,188
----------
57,755
----------
MEDICAL PRODUCTS & SERVICES--5.4%
Angeion* 368,500 1,278
ATS Medical* 255,600 2,013
CNS* 339,000 1,886
Dynamic Healthcare Technologies* 291,100 719
Empi* 294,000 4,759
Lifecore Biomedical* 459,500 10,741
Orphan Medical* 162,800 1,770
----------
23,166
----------
METALS & MINING--5.9%
ACX Technologies* 200,000 4,788
Titanium Metals* 200,000 5,425
Varlen 387,600 14,923
----------
25,136
----------
MISCELLANEOUS BUSINESS SERVICES--6.8%
National Computer Systems 787,200 17,712
Summit Medical Systems* 197,700 618
Valmont Industries 436,600 10,588
----------
28,918
----------
MISCELLANEOUS CONSUMER SERVICES--2.8%
Appliance Recycling Centers of America* 15,000 39
Regis 394,400 11,832
----------
11,871
----------
PETROLEUM & FUEL PRODUCTS--1.2%
St. Mary Land & Exploration 135,600 5,182
----------
PRINTING & PUBLISHING--2.9%
Merrill 562,000 12,364
----------
REGIONAL EQUITY FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
RETAIL--7.3%
Buffets* 535,000 $ 7,356
Department 56* 270,000 10,260
Fingerhut 520,900 13,511
----------
31,127
----------
SEMI-CONDUCTORS/INSTRUMENTS--0.8%
Hutchinson Technology* 130,000 3,445
----------
WHOLESALE--2.7%
A.M. Castle 173,450 4,011
Ballantyne of Omaha* 298,500 4,701
Hawkins Chemical 263,105 2,960
----------
11,672
----------
TOTAL COMMON STOCKS -- UNAFFILIATED ISSUERS
(Cost $209,178) 353,651
----------
TOTAL INVESTMENTS IN SECURITIES
OF UNAFFILIATED ISSUERS
(Cost $209,178) 353,651
----------
RELATED PARTY MONEY MARKET FUNDS--9.5%
First American Government
Obligations Fund (A) 16,259,555 16,260
First American Prime
Obligations Fund (A) 24,191,054 24,191
----------
TOTAL RELATED PARTY MONEY MARKET FUNDS
(Cost $40,451) 40,451
----------
INVESTMENTS IN COMMON STOCK OF AFFILIATES--8.0%
Aetrium* (B) 686,000 9,947
Alternate Postal Delivery* (B) 222,000 250
Norstan* (B) 551,300 13,645
Rehabilicare* (B) 259,300 713
Sport-Haley* (B) 313,000 3,130
TSI (B) 715,200 6,258
----------
TOTAL INVESTMENTS IN COMMON STOCK OF AFFILIATES
(Cost $32,943) 33,943
----------
TOTAL INVESTMENTS--100.5%
(Cost $282,572) 428,045
----------
OTHER ASSETS AND LIABILITIES, NET--(0.5%) (C) (1,999)
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
73
REGIONAL EQUITY FUND (CONTINUED)
DESCRIPTION Value (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares -- Class Y
($.0001 par value -- 2 billion authorized)
based on 14,888,683 outstanding shares $ 207,082
Portfolio Shares -- Retail Class A
($.0001 par value -- 2 billion authorized)
based on 1,591,795 outstanding shares 23,278
Portfolio Shares -- Retail Class B
($.0001 par value -- 2 billion authorized)
based on 1,946,726 outstanding shares 33,183
Distribution in excess of net investment income (101)
Accumulated net realized gain on investments 17,131
Net unrealized appreciation of investments 145,473
----------
TOTAL NET ASSETS--100.0% $ 426,046
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--CLASS Y $ 23.19
----------
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) $ 22.61
----------
* 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) 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 March 31,
1998.
(C) Other assets and liabilities representing greater than five percent of
total net assets include the following (000):
Cash collateral received for securities on loan $ 31,302
Payable upon return of securities on loan $(31,302)
REGIONAL EQUITY FUND (CONCLUDED)
- --------------------------------------------------------------------------------
The activity for investments in Common Stock of Affiliates is as follows:
Net
Shares at Shares at Realized
Description 09/30/97 03/31/98 Difference Dividends (Losses)
- ----------- --------- --------- ----------- --------- -----------
Aetrium 686,000 686,000 -- -- --
Alternate Postal
Delivery 236,500 222,000 (14,500) -- (55,282)
Appliance
Recycling
Centers 44,975 15,000(1) (29,975) -- (643,684)
Dura Automotive
Systems 163,900 163,900(1) -- -- --
Onelink
Communications 328,900 97,900(1) (231,000) -- (570,756)
Mosaix 604,800 604,800(1) -- -- --
Norstan 536,300 551,300 15,000 -- --
Premis 152,200 152,200(1) -- -- --
Rehabilicare 259,300 259,300 -- -- --
Sport Haley 298,000 313,000 15,000 -- --
TSI 715,200 715,200 -- 42,912 --
--------- --------- ---------- -------- -----------
4,026,075 3,780,600 (245,475) $ 42,912 $(1,269,722)
(1) At March 31, 1998, these securities were not considered common stock of
affiliates.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
74
SMALL CAP GROWTH FUND
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
COMMON STOCKS--90.0%
AEROSPACE & DEFENSE--2.8%
Remec* 67,500 $ 1,936
Tracor* 96,000 3,078
----------
5,014
----------
AIRCRAFT--1.5%
BE Aerospace* 94,000 2,644
----------
APPAREL/TEXTILES--0.7%
Culp 29,000 594
Hirsch International, Cl A* 77,000 712
----------
1,306
----------
AUTOMOTIVE--2.1%
Csk Auto* 10,000 225
Tower Automotive* 78,000 3,510
----------
3,735
----------
BANKS--2.1%
Bank United, Cl A 6,000 300
Bay View Capital 100,000 3,475
----------
3,775
----------
BATTERIES & BATTERY SYSTEMS--0.6%
Bolder Technologies* 115,000 1,049
----------
BROADCASTING, NEWSPAPERS & ADVERTISING--1.5%
Getty Images Inc* 105,000 2,638
----------
CHEMICALS--0.8%
Cambrex 26,500 1,335
----------
COMMUNICATIONS EQUIPMENT--6.2%
Checkpoint Systems* 90,000 1,912
Communications Systems 90,000 1,536
CTC Communications* 90,000 782
Harmonic Lite* 63,000 1,016
Medialink Worldwide* 160,000 3,280
Transcrypt International* 124,000 1,356
Ultrak* 130,000 1,207
----------
11,089
----------
COMPUTERS & SERVICES--2.7%
Accent Color Sciences* 142,000 453
Apex PC Solutions* 60,000 1,612
HCIA* 15,000 221
HMT Technology* 95,000 1,229
In Focus Systems* 100,000 900
Mackie Designs* 65,000 455
----------
4,870
----------
SMALL CAP GROWTH FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
PHARMACEUTICALS--3.4%
Barr Laboratories* 25,000 $ 1,009
Celgene* 40,000 435
Algos Pharmaceuticals* 75,000 2,269
Lifecore Biomedical* 100,000 2,338
----------
6,051
----------
ENERGY & POWER--1.0%
Calenergy* 60,000 1,695
----------
FOOD, BEVERAGE & TOBACCO--1.0%
Consolidated Cigar Holdings* 40,000 633
Scheid Vineyards* 100,000 1,125
----------
1,758
----------
HOTELS & LODGING--0.4%
Suburban Lodges of America* 40,000 635
----------
INSURANCE--8.7%
Amerin* 119,000 3,585
ARM Financial Group 12,300 285
Healthcare Recoveries* 80,000 1,860
Meadowbrook Insurance Group 50,000 1,531
United Payors & United Providers* 170,000 5,631
Vesta Insurance Group 50,000 2,681
----------
15,573
----------
LEASING & RENTING--1.2%
Renters Choice* 90,000 2,205
----------
MACHINERY--0.7%
Electric Fuel* 70,500 189
Shaw Group* 39,500 985
----------
1,174
----------
MEDICAL DEVICES--4.3%
Cyberonics* 200,000 6,375
Nitinol Medical Technologies* 134,000 1,382
----------
7,757
----------
MEDICAL PRODUCTS & SERVICES--8.9%
ATS Medical* 209,400 1,649
Cardima* 85,000 351
Closure Medical* 70,000 1,514
Conceptus* 110,300 386
Dynamic Healthcare Technologies* 150,000 370
Heska* 154,000 2,291
Idexx Laboratories* 75,000 1,350
Medical Alliance* 34,000 123
Mentor 40,000 1,105
Neuromedical Systems* 60,000 154
Qiagen* 45,000 3,004
Quorum Health Group* 110,000 3,699
----------
15,996
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
75
SMALL CAP GROWTH FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
MISCELLANEOUS BUSINESS SERVICES--10.6%
CCC Information Services Group* 60,000 $ 1,650
Computer Learning Centers* 50,000 838
Crystal Systems Solutions* 60,000 1,106
Engineering Animation* 24,000 996
Harbinger* 20,000 755
J.D. Edwards & Company* 10,400 340
Keane* 40,000 2,260
ONTRACK Data International* 75,000 1,219
Pegasystems* 30,000 548
QAD* 100,000 1,469
RWD Technologies* 50,000 1,375
Spatial Technology* 94,200 224
Staffmark* 120,000 4,920
Technology Solutions* 50,000 1,325
----------
19,025
----------
MISCELLANEOUS MANUFACTURING--0.8%
Racing Champions* 81,000 876
Special Metals* 40,000 650
----------
1,526
----------
OIL-DOMESTIC--1.8%
Petroleum Geo Services, ADR* 55,000 3,266
----------
PETROLEUM & FUEL PRODUCTS--3.6%
Global Industries* 150,000 3,056
Hanover Compressor* 75,000 1,875
Meridian Resources* 189,000 1,512
----------
6,443
----------
PROFESSIONAL SERVICES--0.7%
Firearms Training Systems* 75,000 675
Precision Response* 70,000 639
----------
1,314
----------
REAL ESTATE--1.0%
Capital Trust, Cl A* 60,000 585
Trammell Crow* 40,000 1,140
----------
1,725
----------
REAL ESTATE INVESTMENT TRUSTS--1.5%
Alexandria Real Estate Equities 54,600 1,730
Golf Trust of America 32,000 1,004
----------
2,734
----------
RETAIL--8.1%
AC Moore Arts & Crafts* 82,000 1,579
Bombay* 150,000 750
SMALL CAP GROWTH FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
Buffets* 146,250 $ 2,011
Cooker Restaurant 130,000 1,308
Eagle Hardware & Garden* 170,000 2,996
St. John Knits 75,000 3,544
The Dress Barn* 80,000 2,300
----------
14,488
----------
SEMI-CONDUCTORS/INSTRUMENTS--1.2%
Advanced Energy Industries* 100,000 1,456
Aetrium* 54,000 783
----------
2,239
----------
SERVICES-PREPACKAGED SOFTWARE--5.2%
BTG* 150,000 1,378
H.T.E.* 85,000 1,923
Hyperion Software* 53,000 2,345
National Instruments* 66,000 2,252
Platinum Technology* 55,000 1,416
----------
9,314
----------
TELEPHONES & TELECOMMUNICATION--4.3%
Lightbridge* 150,000 2,709
Metro One Telecommunications* 80,000 950
NTL* 69,200 2,993
Pricellular, Cl A* 81,444 1,038
----------
7,690
----------
TRANSPORTATION SERVICES--0.5%
C.H. Robinson Worldwide 36,000 936
----------
WATER UTILITIES--0.1%
Waterlink* 10,000 140
----------
TOTAL COMMON STOCKS
(Cost $117,696) 161,139
----------
CONVERTIBLE PREFERRED STOCK--0.1%
Network Imaging 26,000 301
----------
TOTAL CONVERTIBLE PREFERRED STOCK
(Cost $527) 301
----------
RELATED PARTY MONEY MARKET FUND--9.7%
First American Prime
Obligations Fund (A) 17,338,354 17,338
----------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $17,338) 17,338
----------
TOTAL INVESTMENTS--99.8%
(Cost $135,561) 178,778
----------
OTHER ASSETS AND LIABILITIES, NET--0.2% (B) 333
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
76
SMALL CAP GROWTH FUND (CONCLUDED)
DESCRIPTION Value (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares -- Class Y
($.0001 par value -- 2 billion authorized)
based on 9,913,936 outstanding shares $ 122,331
Portfolio Shares -- Retail Class A
($.0001 par value -- 2 billion authorized)
based on 498,000 outstanding shares 6,168
Portfolio Shares -- Retail Class B
($.0001 par value -- 2 billion authorized)
based on 96,982 outstanding shares 1,347
Accumulated net investment loss (41)
Accumulated net realized gain on investments 6,089
Net unrealized appreciation of investments 43,217
----------
TOTAL NET ASSETS--100.0% $ 179,111
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--CLASS Y $ 17.05
----------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE--RETAIL CLASS A $ 16.95
MAXIMUM SALES CHARGE OF 4.50% (1) 0.80
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 17.75
----------
NET ASSET VALUE AND OFFERING
PRICE PER SHARE--RETAIL CLASS B (2) $ 16.45
----------
* 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 also the notes to the financial
statements.
(B) Other assets and liabilities representing greater than five percent of
total net assets include the following (000):
Cash collateral received for securities on loan $ 41,236
Payable upon return of securities on loan $(41,236)
ADR--American Depository Receipt
Cl--Class
SMALL CAP VALUE FUND
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
COMMON STOCKS--95.5%
AEROSPACE--2.3%
Moog, Cl A* 289,000 $ 12,174
----------
AIR TRANSPORTATION--0.2%
World Airways* 143,700 844
----------
APPAREL/TEXTILES--1.4%
Hampshire Group Limited* 55,100 1,061
Quaker Fabric* 134,800 3,437
Tarrant Apparel Group* 126,900 2,974
----------
7,472
----------
AUTOMOTIVE--2.3%
Bonded Motors* 84,800 933
Budget Group, Cl A* 256,600 9,623
Edelbrock* 106,200 2,058
----------
12,614
----------
BANKS--5.4%
Astoria Financial 45,000 2,782
Eagle Financial 70,300 4,064
First Republic Bank* 183,000 6,588
TR Financial 218,800 7,603
UST 69,530 1,973
Webster Financial 86,300 5,998
----------
29,008
----------
CHEMICALS--2.3%
Borg Warner Security* 461,200 9,080
Cambrex 31,150 1,569
CPAC* 162,100 1,803
----------
12,452
----------
COMMUNICATIONS EQUIPMENT--0.9%
Comdial* 225,300 2,478
Nimbus CD International* 254,800 2,596
----------
5,074
----------
COMPUTER COMMUNICATIONS EQUIPMENT--0.3%
Network Equipment Technology* 86,500 1,406
----------
COMPUTERS & SERVICES--13.5%
American Software, Cl A* 355,300 2,798
BancTec* 228,262 5,621
Bell & Howell* 195,600 5,367
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
77
SMALL CAP VALUE FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
Borland International* 462,300 $ 4,146
Concurrent Computer* 306,700 978
Dataflex* 283,600 1,081
Fourth Shift* 284,000 745
Gatefield* 547,200 1,231
General Scanning* 165,200 3,552
Government Technology Services* 133,100 715
GSE Systems* 189,900 522
Kentek Information Systems 81,000 643
Kronos* 69,500 2,441
Learmonth & Burchett Management
Systems, ADR* 203,300 1,042
MacNeal-Schwendler* 198,000 2,339
Mentor Graphics* 47,700 468
Micrografx* 236,500 3,119
National Computer Systems 207,400 4,666
Number Nine Visual Technology* 74,700 205
Olicom A/S* 295,300 8,213
Pioneer-Standard Electronics 187,600 2,298
Pomeroy Computer Resources* 270,225 6,367
Sapiens International* 246,700 1,989
Sybase* 555,300 5,362
Triple P N.V.* 847,460 2,066
TRO Learning* 212,200 1,877
Wonderware* 129,000 3,080
----------
72,931
----------
CONSTRUCTION--0.1%
Central Sprinkler* 25,300 354
Guy F. Atkinson* 135,600 17
Triad Park LLC* 100,400 181
----------
552
----------
CONTAINERS & PACKAGING--0.9%
BWay* 177,000 4,580
----------
ELECTRICAL SERVICES--4.0%
El Paso Electric* 250,000 2,141
TNP Enterprises 82,300 2,721
Unisource Energy Holding* 972,320 16,894
----------
21,756
----------
ENVIRONMENTAL SERVICES--0.8%
Envirosource* 325,900 754
Heidemij N.V.* 179,700 2,066
Walbro 118,500 1,452
----------
4,272
----------
SMALL CAP VALUE FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
FINANCIAL SERVICES--3.7%
Aames Financial 94,400 $ 1,310
Franchise Mortgage Acceptance* 332,000 8,341
Medallion Financial 44,600 1,210
OMEGA Healthcare Investors 129,300 5,043
Pacific Crest Capital* 1,000 19
Rockford Industries* (A) 207,000 1,527
WFS Financial* 229,000 2,347
----------
19,797
----------
GAS/NATURAL GAS--0.2%
Midcoast Energy Resources 42,020 922
----------
GLASS PRODUCTS--0.7%
Libbey 100,300 3,736
----------
HAZARDOUS WASTE MANAGEMENT--0.5%
Air & Water Technologies* 1,362,300 2,810
----------
HEALTHCARE MANAGEMENT--0 2%
Complete Management* 127,200 1,081
----------
HOUSEHOLD FURNITURE & FIXTURES--0.9%
Stanley Furniture* 116,700 4,653
----------
HOUSING CONSTRUCTION--2.1%
Centex Construction Products 73,500 2,678
Morgan Products* 227,200 1,250
Simpson Manufacturing* 108,600 4,425
Synthetic Industries* 120,400 3,010
----------
11,363
----------
HOUSEHOLD PRODUCTS--0.6%
Acorn Products* 24,100 232
Thomas Industries 139,650 3,107
----------
3,339
----------
INSURANCE--13.5%
ACMAT, Cl A* 86,400 1,345
American Eagle Group* 139,300 4
Amerin* 100,500 3,028
Amerus Life Holdings, Cl A 55,105 1,784
Chandler Insurance* 88,200 684
Delphi Financial Group, Cl A* 148,933 7,931
Enhance Financial Services Group 161,300 11,200
Farm Family Holdings* 64,600 2,503
Fremont General 283,260 16,659
John Alden Financial 168,400 3,631
LaSalle Re Holdings 128,400 5,385
Orion Capital 107,124 5,858
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
78
SMALL CAP VALUE FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
Penn Treaty American* 193,900 $ 5,672
Philadelphia Consolidated Holding* 206,700 4,444
SCPIE Holdings 60,200 1,866
Symons International Group* 36,900 627
Westbridge Capital* 105,900 66
----------
72,687
----------
LEASING & RENTING--0.7%
Leasing Solutions* 47,600 1,336
Willis Lease Finance* 107,100 2,396
----------
3,732
----------
MACHINERY--4.9%
Bridgeport Machines* 176,100 2,069
Brown & Sharpe Manufacturing, Cl A* 343,300 4,077
Dayton Superior* 164,300 3,317
Foster (LB), Cl A* 253,800 1,364
MagneTek* 428,650 8,064
Park-Ohio Industries* 182,300 3,532
Scotsman Industries 91,100 2,619
Unit Instruments* 133,350 1,133
----------
26,175
----------
MARINE TRANSPORTATION--0.1%
Anangel American Shipholdings, ADR 74,500 596
----------
MEDICAL PRODUCTS & SERVICES--3.0%
Cholestech* 303,300 4,549
Diagnostic Health Services* 279,600 3,565
Maxxim Medical* 21,221 609
PolyMedica* 288,600 3,535
Spacelabs Medical* 160,900 3,560
Unison HealthCare* 171,100 70
----------
15,888
----------
MISCELLANEOUS BUSINESS SERVICES--2.8%
Coinmach Laundry* 110,100 2,326
InteliData Technologies* 164,500 494
May & Speh* 176,300 2,534
PMT Services* 264,300 4,741
Suiza Foods* 84,900 5,221
----------
15,316
----------
MISCELLANEOUS CONSUMER SERVICES--1.0%
Regis 179,600 5,388
----------
SMALL CAP VALUE FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
MISCELLANEOUS MANUFACTURING--2.4%
AFC Cable Systems* 186,850 $ 7,264
Matthews International, Cl A 94,000 3,760
Tredegar Industries 30,000 2,173
----------
13,197
----------
MOTORCYCLES, BICYCLES & PARTS--0.3%
Huffy 106,000 1,716
----------
OFFICE FURNITURE & FIXTURES--0.5%
Cross (A.T.), Cl A 95,600 1,111
Shelby Williams Industries 122,800 1,834
----------
2,945
----------
PAPER COATED AND LAMINATED--0.2%
FiberMark* 54,750 1,276
----------
PETROLEUM & FUEL PRODUCTS--2.4%
Abacan Resource* 407,900 574
Chesapeake Energy 158,340 930
Forest Oil* 260,360 4,019
Meridian Resources* 117,012 936
Nordic American Tanker Shipping* 321,900 5,150
Titan Exploration* 162,500 1,320
----------
12,929
----------
PHARMACEUTICALS--2.8%
Catalytica* 921,133 11,514
Roberts Pharmaceutical* 263,200 3,751
----------
15,265
----------
PRINTING & PUBLISHING--1.0%
Devon Group* 60,500 3,554
Topps* 628,200 1,610
----------
5,164
----------
REAL ESTATE--5.1%
Capital Automotive* 430,000 8,116
Chelsea GCA Realty 98,900 3,659
Highwoods Properties 92,700 3,273
Lexington Corporate Properties 178,600 2,712
RFS Hotel Investors 121,900 2,225
Shurgard Storage Centers 117,200 3,296
Walden Residential Properties 109,200 2,757
Winston Hotels 123,500 1,636
----------
27,674
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
79
SMALL CAP VALUE FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
RETAIL--5.5%
Apple South 255,300 $ 3,782
Bacou USA* 130,300 2,134
Buffets* 9,200 127
Deckers Outdoor* 95,700 694
Drug Emporium* 582,500 2,439
Finish Line, Cl A* 119,000 2,826
Finlay Enterprises* 213,800 5,439
Friedman's, Cl A* 83,200 1,690
Genovese Drug Stores, Cl A 171,020 3,784
K-Swiss, Cl A 75,200 1,448
Marks Brothers Jewelers* 56,200 1,113
Piercing Pagoda* 81,500 2,547
Video Update, Cl A* 379,250 1,304
West Coast Entertainment* 97,700 311
----------
29,638
----------
SEMI-CONDUCTORS/INSTRUMENTS--1.2%
FEI* 131,600 1,645
Planar Systems* 178,000 2,270
Unitrode* 150,100 2,796
----------
6,711
----------
SINGLE FAMILY HOUSING CONSTRUCTION--0.7%
Continental Homes Holding 77,100 3,585
----------
STEEL & STEEL WORKS--1.4%
Kentucky Electric Steel* 107,400 685
Northwest Pipe* 199,000 4,328
Republic Engineered Steels* 558,700 2,340
----------
7,353
----------
TELEPHONES & TELECOMMUNICATION--0.6%
Netrix* 500 1
Superior TeleCom* 78,675 3,285
----------
3,286
----------
TRANSPORTATION--0.6%
Excel Industries 148,600 3,065
----------
TRUCKING--0.2%
Supreme Industries* 97,990 1,243
----------
SMALL CAP VALUE FUND (CONTINUED)
DESCRIPTION Shares/Par (000) Value (000)
- --------------------------------------------------------------------------------
UTILITIES--0.4%
Trigen Energy 130,100 $ 1,968
----------
WHOLESALE--0.9%
Performance Food Group* 96,800 1,997
U.S. Foodservice* 75,704 2,787
----------
4,784
----------
TOTAL COMMON STOCKS
(Cost $344,754) 514,417
----------
CONVERTIBLE BONDS--1.5%
Aames Financial, 53.5619 Shares
5.500%, 03/15/06 $ 390 367
Complete Management, 62.5000 Shares
8.000%, 12/15/03 595 544
Complete Management, 71.4286 Shares
8.000%, 08/15/03 1,170 1,106
Drug Emporium, 65.1466 Shares
7.750%, 10/01/14 740 646
Leasing Solutions, 28.6533 Shares
6.875%, 10/01/03 455 469
MacNeal-Schwendler, 66.0066 Shares
7.875%, 08/18/04 1,025 1,103
Titan, 285.7143 Shares
8.250%, 11/01/03 1,935 3,776
----------
TOTAL CONVERTIBLE BONDS
(Cost $6,038) 8,011
----------
RELATED PARTY MONEY MARKET FUND--4.0%
First American Prime
Obligations Fund (B) 21,712,571 21,713
----------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $21,713) 21,713
----------
TOTAL INVESTMENTS--101.0%
(Cost $372,505) 544,141
----------
OTHER ASSETS AND LIABILITIES, NET--(1.0%) (C) (5,318)
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
80
SMALL CAP VALUE FUND (CONCLUDED)
DESCRIPTION Value (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares -- Class Y
($.0001 par value -- 2 billion authorized)
based on 28,594,463 outstanding shares $ 344,446
Portfolio Shares -- Retail Class A
($.0001 par value -- 2 billion authorized)
based on 1,081,494 outstanding shares 14,136
Portfolio Shares -- Retail Class B
($.0001 par value -- 2 billion authorized)
based on 7,450 outstanding shares 131
Undistributed net investment income 156
Accumulated net realized gain on investments 8,318
Net unrealized appreciation of investments 171,636
----------
TOTAL NET ASSETS--100.0% $ 538,823
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--CLASS Y $ 18.15
----------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE--RETAIL CLASS A $ 18.14
MAXIMUM SALES CHARGE OF 4.50% (1) 0.85
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 18.99
----------
NET ASSET VALUE AND OFFERING
PRICE PER SHARE--RETAIL CLASS B (2) $ 18.10
----------
*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) Investment represents 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 March 31,
1998. The number of share held November 30, 1997 were 207,000. No
dividends, realized gains or losses were recognized throughout the period.
(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 (000):
Cash collateral received for securities on loan $ 72,171
Payable upon return of securities on loan $(72,171)
ADR--American Depository Receipt
Cl--Class
MICRO CAP VALUE FUND
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
COMMON STOCKS--94.6%
AEROSPACE--2.8%
Moog, Cl A* 135,500 $ 5,708
----------
AIR TRANSPORTATION--0.2%
World Airways* 74,000 435
----------
APPAREL/TEXTILES--1.9%
Hampshire Group Limited* 44,100 849
Quaker Fabric* 68,300 1,742
Tarrant Apparel Group* 61,200 1,434
----------
4,025
----------
AUTOMOTIVE--1.8%
Bonded Motors* 72,500 798
Budget Group, Cl A* 48,800 1,830
Edelbrock* 55,700 1,079
----------
3,707
----------
BANKS--4.8%
First Republic Bank* 70,000 2,520
TR Financial 100,000 3,475
UST 35,400 1,004
Webster Financial 43,200 3,002
----------
10,001
----------
CHEMICALS--1.2%
Cambrex 30,600 1,541
CPAC* 74,900 833
----------
2,374
----------
COMMUNICATIONS EQUIPMENT--1.5%
Comdial* 115,500 1,270
Nimbus CD International* 129,200 1,316
Transcrypt International* 48,000 525
----------
3,111
----------
COMPUTERS & SERVICES--15 3%
American Software, Cl A* 187,200 1,474
Bell & Howell* 64,000 1,756
Borland International* 185,000 1,659
Cimatron* 213,442 840
Concurrent Computer* 146,300 466
Consilium* 285,163 838
Dataflex* 155,900 594
Fourth Shift* 135,700 356
Gatefield* 318,350 716
General Scanning* 65,000 1,397
Government Technology Services* 49,600 267
GSE Systems* 55,000 151
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
81
MICRO CAP VALUE FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
Kentek Information Systems 15,000 $ 119
Kofax Image Products* 75,000 567
Kronos* 37,300 1,310
Learmonth & Burchett Management
Systems, ADR* 88,400 453
MacNeal-Schwendler* 101,900 1,204
May & Speh* 90,700 1,304
Micrografx* 100,000 1,319
National Computer Systems 120,000 2,700
Number Nine Visual Technology* 40,000 110
Olicom A/S* 133,900 3,724
Pioneer-Standard Electronics 95,400 1,169
Pomeroy Computer Resources* 135,000 3,181
Sapiens International* 100,000 806
Triple P N.V.* 213,500 520
TRO Learning* 157,700 1,395
TrueVision* 131,676 288
Wonderware* 50,000 1,194
----------
31,877
----------
CONSTRUCTION--0.8%
Central Sprinkler* 12,600 176
Dayton Superior* 75,500 1,524
Guy F. Atkinson* 76,100 10
----------
1,710
----------
CONTAINERS & PACKAGING--0.7%
BWay* 59,400 1,537
----------
ELECTRICAL SERVICES--1.7%
El Paso Electric* 126,800 1,086
TNP Enterprises 42,900 1,418
Trigen Energy 62,000 938
----------
3,442
----------
ENVIRONMENTAL SERVICES--1.2%
Envirosource* 210,300 486
Heidemij N.V.* 77,200 888
Walbro 94,500 1,158
----------
2,532
----------
FINANCIAL SERVICES--4.4%
Aames Financial 48,200 669
Eagle Financial 35,800 2,070
Medallion Financial 26,100 708
OMEGA Healthcare Investors 90,000 3,510
Pacific Crest Capital* 10,000 186
Rockford Industries* 106,700 787
WFS Financial* 116,100 1,190
----------
9,120
----------
MICRO CAP VALUE FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
GAS/NATURAL GAS--0.2%
Midcoast Energy Resources 21,010 $ 461
----------
GLASS PRODUCTS--0.9%
Libbey 50,000 1,862
----------
HAZARDOUS WASTE MANAGEMENT--0.6%
Air & Water Technologies* 620,600 1,280
----------
HEALTHCARE MANAGEMENT--0.2%
Complete Management* 53,300 453
----------
HOUSEHOLD FURNITURE & FIXTURES--2.2%
Stanley Furniture* 58,900 2,349
Thomas Industries 100,950 2,246
----------
4,595
----------
HOUSING CONSTRUCTION--2.6%
Centex Construction Products 23,900 871
Continental Homes Holding 35,000 1,627
Morgan Products Limited* 113,700 625
Simpson Manufacturing* 20,000 815
Synthetic Industries* 61,700 1,542
----------
5,480
----------
INSURANCE--7.9%
ACMAT, Cl A* 52,700 820
Amerus Life Holdings, Cl A 25,887 838
Chandler Insurance* 81,925 635
Delphi Financial Group, Cl A* 39,902 2,125
Farm Family Holdings* 29,400 1,139
John Alden Financial* 80,700 1,740
LaSalle Re Holdings 45,300 1,900
Penn Treaty American* 118,550 3,468
Philadelphia Consolidated Holding* 112,200 2,412
SCPIE Holdings 29,900 927
Symons International Group* 20,600 350
Westbridge Capital* 43,300 27
----------
16,381
----------
LEASING & RENTING--0.8%
Leasing Solutions* 24,500 688
Willis Lease Finance* 43,200 967
----------
1,655
----------
MACHINERY--5.2%
Bridgeport Machines* 111,500 1,310
Brown & Sharpe Manufacturing, Cl A* 126,800 1,506
Foster (LB), Cl A* 160,000 860
MagneTek* 192,262 3,617
Park-Ohio Industries* 84,535 1,638
Scotsman Industries 30,800 885
Unit Instruments* 112,620 957
----------
10,773
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
82
MICRO CAP VALUE FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
MARINE TRANSPORTATION--1.0%
Anangel American Shipholdings, ADR 35,400 $ 283
Nordic American Tanker Shipping 112,900 1,806
----------
2,089
----------
MEDICAL PRODUCTS & SERVICES--3.4%
Bacou USA* 43,000 704
Cholestech* 141,500 2,123
Diagnostic Health Services* 121,400 1,548
Maxxim Medical* 8,611 247
PolyMedica* 79,000 968
Spacelabs Medical* 65,000 1,438
Unison HealthCare* 56,500 23
----------
7,051
----------
MISCELLANEOUS BUSINESS SERVICES--1.5%
Coinmach Laundry* 56,400 1,191
InteliData Technologies* 81,600 245
PMT Services* 94,100 1,688
----------
3,124
----------
MISCELLANEOUS CONSUMER SERVICES--0.6%
Regis 41,300 1,239
----------
MISCELLANEOUS MANUFACTURING--3.6%
AFC Cable Systems* 90,750 3,528
Excel Industries 75,900 1,565
FiberMark* 42,150 983
Matthews International, Cl A 35,400 1,416
----------
7,492
----------
MOTORCYCLES, BICYCLES & PARTS--0.4%
Huffy 48,300 782
----------
OFFICE FURNITURE & FIXTURES--0.5%
Shelby Williams Industries 62,800 938
----------
PETROLEUM & FUEL PRODUCTS--1.5%
Abacan Resource* 213,700 301
Chesapeake Energy 80,470 473
Forest Oil* 77,620 1,198
Meridian Resource 61,344 491
Titan Exploration* 85,400 694
----------
3,157
----------
PHARMACEUTICALS--2.8%
Catalytica* 358,400 4,480
Roberts Pharmaceutical* 99,700 1,421
----------
5,901
----------
PRINTING & PUBLISHING--1.7%
Devon Group* 61,400 3,607
----------
MICRO CAP VALUE FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
PROFESSIONAL SERVICES--2.1%
Borg Warner Security* 210,000 $ 4,134
Total Containment* 60,455 234
----------
4,368
----------
REAL ESTATE--2.5%
Chelsea GCA Realty 27,100 1,003
Lexington Corporate Properties 53,000 805
RFS Hotel Investors 33,200 606
Shurgard Storage Centers 65,100 1,831
Walden Residential Properties 34,000 859
Winston Hotels 12,900 171
----------
5,275
----------
RETAIL--5.7%
Apple South 100,000 1,481
Deckers Outdoor* 55,100 399
Drug Emporium* 331,600 1,389
Finish Line, Cl A* 46,100 1,095
Finlay Enterprises* 55,900 1,422
Friedman's, Cl A* 40,600 825
Genovese Drug Stores, Cl A 66,000 1,460
K-Swiss, Cl A 38,200 735
Marks Bros. Jewelers* 28,400 563
Piercing Pagoda* 39,100 1,222
Topps* 180,000 461
Video Update, Cl A* 175,125 602
West Coast Entertainment* 49,300 157
----------
11,811
----------
SEMI-CONDUCTORS/INSTRUMENTS--1.2%
FEI* 100,000 1,250
Planar Systems* 91,100 1,162
----------
2,412
----------
STEEL & STEEL WORKS--1.6%
Kentucky Electric Steel* 60,000 383
Northwest Pipe* 100,100 2,177
Republic Engineered Steels* 200,000 838
----------
3,398
----------
TELEPHONES & TELECOMMUNICATION--1.4%
Netrix* 74,300 153
Periophonics* 88,500 1,137
Superior TeleCom 40,000 1,670
----------
2,960
----------
TESTING LABORATORIES--0.4%
Collaborative Clinical Research* 200,000 850
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
83
MICRO CAP VALUE FUND (CONTINUED)
DESCRIPTION Shares/Par (000) Value (000)
- --------------------------------------------------------------------------------
TRUCKING--0.4%
Supreme Industries* 69,611 $ 883
----------
UTILITIES--2.9%
Unisource Energy* 350,000 6,081
----------
WHOLESALE--0.5%
Performance Food Group* 50,700 1,046
----------
TOTAL COMMON STOCKS
(Cost $132,873) 196,983
----------
CONVERTIBLE BONDS--1.7%
Aames Financial, 53.5619 Shares
5.500%, 03/15/06 $ 200 188
Complete Management, 62.5000 Shares
8.000%, 12/15/03 300 275
Complete Management, 71.4286 Shares
8.000%, 08/15/03 590 558
Drug Emporium, 65.1466 Shares
7.750%, 10/01/14 921 804
Leasing Solutions, 28.6533 Shares
6.875%, 10/01/03 250 258
MacNeal-Schwendler, 66.0066 Shares
7.875%, 08/18/04 630 678
Titan, 285.7143 Shares
8.250%, 11/01/03 360 702
----------
TOTAL CONVERTIBLE BONDS
(Cost $2,976) 3,463
----------
RELATED PARTY MONEY MARKET FUND--4.0%
First American Prime
Obligations Fund (A) 8,348,539 8,349
----------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $8,349) 8,349
----------
TOTAL INVESTMENTS--100.3%
(Cost $144,198) 208,795
----------
OTHER ASSETS AND LIABILITIES, NET--(0.3%) (B) (646)
----------
MICRO CAP VALUE FUND (CONCLUDED)
DESCRIPTION Value (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares -- Class Y
($.0001 par value -- 2 billion authorized)
based on 20,202,976 outstanding shares $ 124,429
Portfolio Shares -- Retail Class A
($.0001 par value -- 2 billion authorized)
based on 49,735 outstanding shares 494
Portfolio Shares -- Retail Class B
($.0001 par value -- 2 billion authorized)
based on 19,839 outstanding shares 199
Undistributed net investment Income 33
Accumulated net realized gain on investments 18,397
Net unrealized appreciation of investments 64,597
----------
TOTAL NET ASSETS--100.0% $ 208,149
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--CLASS Y $ 10.27
----------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE--RETAIL CLASS A $ 10.28
MAXIMUM SALES CHARGE OF 4.50% (1) 0.48
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 10.76
----------
NET ASSET VALUE AND OFFERING
PRICE PER SHARE--RETAIL CLASS B (2) $ 10.22
----------
* 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 also the notes to the financial
statements.
(B) Other assets and liabilities representing greater than five percent of
total net assets include the following (000):
Cash collateral received for securities on loan $ 27,430
Payable upon return of securities on loan $(27,430)
ADR--American Depository Receipt
Cl--Class
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
84
INTERNATIONAL INDEX FUND
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
FOREIGN COMMON STOCKS--97.1%
AUSTRALIA--2.4%
Amcor 18,082 $ 78
Boral 26,427 66
Brambles 6,892 143
Broken Hill Proprietary 35,947 367
Burns Philip & Co 15,097 2
Coca-Cola Amatil 23,618 185
Coles Myer 26,617 133
CSR 26,547 92
Fosters Brewing 66,822 145
Goodman Fielder 41,964 65
ICI Australia 12,107 84
Lend Lease 6,297 147
M.I.M. Holdings 2,632 2
National Australia Bank 41,506 590
Newcrest Mining* 21,543 34
News Corporation 45,593 301
North Limited 18,526 50
Pacific Dunlop 34,457 66
Pioneer International 29,492 85
Rio Tinto 7,547 99
Santos 22,425 84
Southcorp Holdings 22,625 90
Western Mining 34,033 117
Westfield Trust Units 60,821 128
Westpac Banking 53,367 357
----------
3,510
----------
AUSTRIA--0.4%
Austrian Airlines* 1,410 44
Bank Austria 1,386 94
EA Generali 386 122
Flughafen Wien 772 35
Oest Elektrizatswits, Cl A 367 42
Oesterreichische 885 52
OMV 340 44
VA Technologie 539 85
Wienerberger Baust 256 53
----------
571
----------
BELGIUM--1.3%
Bekaert 87 64
Cimenteries CBR Cement 185 18
Delhaize Freres - Le Lion 1,220 78
Electrabel 1,224 312
Electrabel - Strip VVPR 300 --
Fortis 932 259
Fortis Strip VVPR 20 --
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
Generale Banque 438 $ 232
Group Bruxelles Lambert 641 111
Kredietbank 335 180
Kredietbank VVPR 7 4
Petrofina 462 167
Royale Belgian 384 135
Solvay 1,720 130
Tractebel 1,520 160
Tractebel Put Warrants 11/99* 329 --
Union Miniere* 428 30
----------
1,880
----------
DENMARK--1.0%
Carlsberg, Cl A 562 36
Carlsberg, Cl B 736 48
D/S 1912, Cl B 4 187
D/S Svendborg, Cl B 3 204
Danisco 1,429 94
Den Danske Bank* 1,199 157
FLS Industries, Cl B 1,605 46
International Service System* 1,240 59
Novo-Nordisk, Cl B 1,311 223
Radiometer, Cl B 417 21
Ratin, Cl B* 670 119
Sophus Berendsen, Cl B 670 26
Tele Danmark, Cl B 2,386 217
Unidanmark, Cl A 1,148 91
----------
1,528
----------
FINLAND--0.9%
Kesko 4,400 71
Kone, Cl B 200 27
Merita, Cl A 18,733 113
Metra, Cl B 1,300 32
Nokia, Cl A 4,900 526
Nokia, Cl K 1,400 151
Outokumpu, Cl A 3,500 44
Sampo Insurance 2,000 79
Stockmann 400 34
UPM Kymmene 6,640 169
----------
1,246
----------
FRANCE--8.6%
Accor 887 228
Air Liquide 1,991 337
Alcatel Alsthom 3,491 655
Axa 7,126 734
Bancaire 777 134
Banque Nationale Paris, Cl A 4,535 352
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
85
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
Bic 1,500 $ 114
Bouygues 751 131
Canal Plus 671 126
Carrefour Supermarkets 841 495
Casino Guichard Perrachon 1,550 105
Chargeurs 200 13
Comptoirs Modernes 150 77
Danone 1,680 406
Elf Aquitaine 5,831 764
Eridania Beghin Say 650 130
Eurafrance 100 50
Generale des Eaux 2,961 481
Generale des Eaux Warrants* 4,019 5
Havas 1,857 154
L'Oreal 1,536 714
Lafarge 2,284 194
Lafarge Rights* 2,284 3
Lagardere Groupe 2,819 114
Legrand 630 170
Lyonnaise des Eaux 2,727 394
Michelin, Cl B 3,273 195
Moet-Hennessy Louis Vuitton 1,881 399
Moulinex* 1,050 26
Paribas 3,363 340
Pathe 200 41
Pernod Ricard 1,302 88
Peugeot Citroen 1,250 215
Pinault-Printemps 510 394
Promodes 419 201
Rhone-Poulenc, Cl A 7,724 393
Sagem 150 96
Saint Gobain 1,939 319
Sanofi 2,630 302
Schneider 3,374 260
Sefimeg 431 29
Sidel 800 58
Simco 841 72
Societe Generale - A 2,229 446
Sodexho Alliance 225 155
Thomson 3,217 130
Total, Cl B 5,172 621
UAP 7,902 306
Unibail 250 31
Usinor 5,972 100
Valeo 1,778 156
----------
12,453
----------
GERMANY--9.4%
Adidas-Salomon 1,050 186
Agiv* 880 19
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
Allianz 4,800 $ 1,450
Allianz Rights* 4,800 24
AMB Aachener & Muenchener 400 44
AMB Aachener & Muenchener, Registered 800 88
Axa Colonia Konzern 700 85
BASF 13,100 583
Bayer 15,250 698
Bayerische Hypotheken 5,050 276
Bayerische Vereinsbank 6,000 438
Beiersdorf 2,000 98
Bilfinger & Berger 1,200 39
Brau und Brunnen* 250 25
Continental 3,100 79
Daimler Benz 11,670 1,073
Degussa 2,250 128
Deutsche Bank 10,700 805
Deutsche Lufthansa, Registered 8,100 171
Deutsche Telekom 45,950 998
Deutz* 3,400 29
Dresdner Bank 9,850 448
Heidelberger Zement 1,405 109
Hochtief 2,600 106
Karstadt 350 137
Linde 200 145
Man 250 83
Mannesmann 800 586
Merck KGaA 3,850 163
Metro 4,784 211
Munchener Ruckvers 1,700 735
Preussag 300 102
RWE 6,480 349
SAP 1,320 527
Schering 1,500 177
Siemens 11,970 801
Strabag* 100 7
Thyssen 750 161
Veba 10,332 733
Viag 600 327
Volkswagen 550 431
Volkswagen Rights* 550 10
----------
13,684
----------
HONG KONG--2.4%
Bank of East Asia 33,886 70
Cathay Pacific Airways 89,000 87
Cheung Kong Holdings 48,000 341
Chinese Estates 104,296 35
CLP 50,500 254
Hang Lung Development 49,000 71
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
86
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
Hang Seng Bank 39,100 $ 382
Hong Kong & China Gas 95,106 160
Hong Kong Telecommunications 258,039 533
Hong Kong & Shanghai Hotels 29,000 24
Hopewell Holdings 131,139 29
Hutchison Whampoa 80,000 563
Hysan Development 25,000 40
Hysan Development Warrants* 1,250 --
Miramar Hotel & Investment 19,000 23
New World Development 41,489 146
Peregrine Investments Holdings (A) 13,000 --
Shangri-La Asia 38,000 33
Shun Tak Holdings 75,146 17
Sino Land 20,657 11
South China Morning Post 24,000 16
Sun Hung Kai Properties 50,000 340
Swire Pacific, Cl A 33,500 177
Television Broadcasts 10,000 26
Wharf Holdings 43,000 84
Wing Lung Bank 3,500 15
----------
3,477
----------
IRELAND--0.4%
Allied Irish Banks 16,632 204
CRH 10,134 152
Greencore Group 5,342 30
Independant Newspapers 2,515 15
Irish Life 8,360 76
Jefferson Smurfit 29,615 85
Kerry Group, Cl A 4,102 55
Waterford Wedgewood 22,614 36
----------
653
----------
ITALY--4.7%
Assicurazioni Generali 20,625 636
Banca Commerciale Italiana 36,000 180
Banca Intesa 12,000 75
Benetton 5,340 112
Burgo (Cartierre) 4,000 36
Credito Italiano 57,500 284
Edison 16,000 135
ENI SPA 166,725 1,136
Fiat 81,100 338
Fiat RNC 26,400 70
INA 85,794 278
Istituto Banca San Paolo 20,800 290
Istituto Mobiliare Italiano 11,834 192
Italcementi 11,232 132
Italgas 19,000 96
Mediaset 25,484 161
Mediobanca 8,000 117
Mondadori 3,099 36
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
Montedison 154,500 $ 228
Olivetti* 52,800 75
Parmalat Finanziaria 23,400 50
Pirelli 31,000 119
RAS 9,075 132
RAS RNC 3,075 34
SAI 5,000 70
Sirti 3,500 24
Snia 20,000 33
Telecom Italia 92,888 732
Telecom Italia RNC 19,883 122
TIM 142,607 766
TIM RNC 31,894 123
----------
6,812
----------
JAPAN--22.0%
77 Bank 8,000 68
Advantest 2,200 143
Ajinomoto 14,000 122
Alps Electric 8,000 68
Amada 10,000 45
Aoki* 22,000 15
Aoyama Trading 2,800 67
Asahi Bank 50,000 205
Asahi Breweries 9,000 119
Asahi Chemical Industry 28,000 105
Asahi Glass 26,000 144
Ashikaga Bank 18,000 31
Bank of Tokyo-Mitsubishi 101,000 1,228
Bank of Yokohama 25,000 69
Bridgestone 20,000 453
Canon 20,000 452
Chiba Bank 22,000 82
Chichibu Onoda Cement 13,000 23
Chugai Pharmaceutical 8,000 52
Citizen Watch 1,000 7
Cosmo Oil 28,000 53
Credit Saison 3,900 86
Dai Nippon Printing 16,000 264
Daicel Chemical Industries 18,000 36
Daido Steel 24,000 46
Daiei 16,000 58
Daiichi Pharmaceutical 10,000 127
Daikin Industry 9,000 41
Dainippon Ink & Chemicals 21,000 71
Dainippon Screen 7,000 35
Daito Trust Construction 3,000 23
Daiwa House Industries 14,000 102
Daiwa Securities 34,000 143
Denki Kagaku Kogyo Kabushiki Kaisha 33,000 52
Denso 20,000 375
East Japan Railway 86 399
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
87
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
Ebara 10,000 $ 104
Eisai 10,000 137
Fanuc 5,400 186
Fuji Bank 62,000 372
Fuji Photo Film 11,000 410
Fujita 40,000 32
Fujita Kanko 4,000 40
Fujitsu 40,000 417
Furukawa Electric 20,000 79
Gunma Bank 13,000 94
Hankyu 27,000 123
Hankyu Department Stores 7,000 43
Haseko* 52,000 36
Hitachi 73,000 532
Hokuriku Bank 2,000 3
Honda Motor 20,000 721
House Foods 3,000 46
Hoya 3,000 86
Industrial Bank of Japan 58,000 396
Isetan 6,000 51
Ito Yokado 9,000 488
Itochu 40,000 96
Jaccs 5,000 32
Japan Airlines* 42,000 132
Japan Energy 39,000 49
Joyo Bank 26,000 104
Jusco 9,000 161
Kajima 25,000 84
Kandenko 5,000 32
Kaneka 13,000 68
Kansai Electric Power 21,100 355
Kao 14,000 184
Kawasaki Kisen 24,000 37
Kawasaki Steel 69,000 102
Kinden 12,000 156
Kinki Nippon Railway 46,000 251
Kirin Brewery 27,000 241
Komatsu 28,000 134
Konica 8,000 36
Kubota 26,000 71
Kumagai Gumi 46,000 39
Kurita Water Industries 4,000 42
Kyocera 4,400 231
Kyowa Hakko Kogyo 14,000 67
Makita 6,000 63
Marubeni 24,000 63
Marui 10,000 154
Matsushita Electric 46,000 739
Meiji Milk Products 10,000 32
Meiji Seika 15,000 50
Misawa Homes 4,000 15
Mitsubishi 33,000 270
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
Mitsubishi Chemical 64,000 $ 118
Mitsubishi Electric 45,000 118
Mitsubishi Estate 28,000 273
Mitsubishi Heavy Industries 75,000 285
Mitsubishi Materials 34,000 65
Mitsubishi Oil 17,000 29
Mitsubishi Trust & Banking 29,000 285
Mitsui 40,000 255
Mitsui Chemicals 15,000 35
Mitsui Engineering & Shipbuilding 44,000 34
Mitsui Fudosan 19,000 181
Mitsui Marine & Fire Insurance 22,000 114
Mitsui Osk Lines 31,000 52
Mitsui Trust & Banking 34,000 80
Mitsukoshi 14,000 44
Mori Seiki 2,000 23
Murata Manufacturing 5,000 138
Nagase 17,000 65
Nagoya Railroad 18,000 59
Nankai Electric 14,000 60
NEC 37,000 372
Ngk Insulators 8,000 71
NGK Spark Plugs 11,000 75
Nichido Fire & Marine 9,000 49
Nichii 8,000 54
Nichirei 11,000 26
Nihon Cement 10,000 21
Nippon Express 22,000 140
Nippon Fire & Marine 8,000 33
Nippon Light Metal 35,000 48
Nippon Oil 26,000 91
Nippon Paper 13,000 64
Nippon Sheet Glass 22,000 43
Nippon Shokubai 2,000 11
Nippon Steel 137,000 220
Nippon Yusen Kabushik 35,000 126
Nissan Motors 54,000 207
Nissin Food Products 3,000 61
Nitto Denko 3,000 44
NKK 114,000 103
Nomura Securities 44,000 519
NSK 19,000 75
NTN 25,000 77
NTT 179 1,491
Obayashi 17,000 84
Odakyu Railway 19,000 77
Oji Paper 23,000 111
Okamato Industries 13,000 30
Olympus Optical 7,000 61
Omron 6,000 91
Orix 1,400 95
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
88
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
Osaka Gas 57,000 $ 125
Penta Ocean Construct 21,000 51
Pioneer Electronics 5,000 81
Rohm 3,000 275
Sakura Bank 76,000 270
Sankyo 10,000 278
Sanwa Shutter 9,000 47
Sanyo Electric 53,000 140
Sapporo Breweries 12,000 53
Secom 3,000 184
Sega Enterprises 3,400 62
Seiyu 8,000 25
Sekisui Chemical 16,000 91
Sekisui House 17,000 139
Sharp 27,000 184
Shimano 3,000 65
Shimizu 19,000 62
Shin-Etsu Chemical 9,000 178
Shiseido 11,000 126
Shizuoka Bank 16,000 179
Showa Denko 37,000 41
Sony 8,800 746
Sumitomo 21,000 137
Sumitomo Bank 71,000 725
Sumitomo Chemical 16,000 46
Sumitomo Electric 16,000 207
Sumitomo Forestry 7,000 43
Sumitomo Marine & Fire Insurance 24,000 148
Sumitomo Metal 81,000 134
Sumitomo Metal Mining 20,000 78
Taisei 12,000 33
Taisho Pharmaceutical 7,000 157
Takara Shuzo 5,000 23
Takashimaya 11,000 79
Takeda Chemical 22,000 560
Teijin 26,000 77
Toa 9,000 19
Tobu Railway 16,000 52
Toho 770 83
Tohoku Electric Power 10,600 159
Tokai Bank 42,000 260
Tokio Marine & Fire Insurance 33,000 369
Tokyo Broadcasting System 5,000 57
Tokyo Dome 7,000 51
Tokyo Electric Power 24,400 462
Tokyo Electronics 3,000 101
Tokyo Gas 73,000 161
Tokyu 24,000 97
Toppan Printing 16,000 197
Toray 31,000 162
Tosoh 35,000 68
Tostem 7,000 79
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
Toto 13,000 $ 95
Toyo Seikan Kaisha 6,000 90
Toyobo 31,000 47
Toyoda Auto Loom 6,000 103
Toyota Motor 79,000 2,105
Ube Industries 39,000 57
Uniden Corportation 2,000 19
Yamaguchi Bank 4,000 50
Yamanouchi Pharmaceutical 10,000 230
Yamato Transportation 11,000 130
Yamazaki Baking 5,000 60
Yasuda Trust & Banking 28,000 43
Yokogawa Electric 7,000 42
----------
32,075
----------
MALAYSIA--0.9%
Amsteel 95,000 22
Arab Malaysian Merchant Bank 20,000 23
DCB Holdings 20,000 18
Edaran Otomobil Nasional 11,000 20
Gloden Hope Plant 54,000 68
Highlands & Lowlands 30,000 34
Hong Leong 80,000 26
Hume Industries 16,000 17
Magnum 60,500 52
Malayan Banking 40,000 154
Malaysian Airline System 25,000 30
Malaysian International Shipping 17,000 33
Malaysian Resources 44,000 26
Multi Purpose Holdings 66,000 29
Multi Purpose Iculs* 39,000 14
Pan Malaysia Cement Works 55,000 20
Perusahaan Otomobil 4,000 7
Public Bank 89,199 53
Resorts World Berhad 27,000 60
Rothmans of Pall Mall 8,000 67
Silverstone* 3,325 --
Sime Darby 67,000 75
Technology Resources Industries 30,000 34
Telekom Malaysia 62,500 216
Tenaga Nasional Berhad 66,000 167
United Engineers 28,000 33
YTL 30,750 52
YTL Warrants* 3,050 2
----------
1,352
----------
NETHERLANDS--5.6%
ABN-Amro Holding 29,956 691
Ahold 11,717 378
Akzo 1,766 359
Elsevier 14,957 246
Getronics 2,211 95
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
89
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
Heineken 1,083 $ 246
Hoogovens 754 36
ING Groep 19,819 1,125
KLM 1,613 65
Koninklijke 2,219 58
KPN 10,193 528
Pakhoed 867 31
Phillips Electronics 7,324 538
Royal Dutch Petroleum 45,724 2,589
Unilever 13,592 917
Wolters Kluwer 1,461 209
----------
8,111
----------
NEW ZEALAND--0.2%
Brierley Investment 66,325 38
Carter Holt Harvey 49,289 67
Fletcher Challenge Building 3,165 6
Fletcher Challenge Energy 4,794 16
Fletcher Challenge Forests 19,179 13
Fletcher Challenge Paper 5,163 7
Lion Nathan 13,326 34
Telecom Corporation of New Zealand 40,402 192
----------
373
----------
NORWAY--0.5%
Bergesen, Cl A 2,400 51
Dyno Industrier 1,200 22
Hafslund 3,850 22
Hafslund, Cl B 1,600 7
Kvaerner 1,450 65
Norsk Hydro 5,650 280
Norske Skogindustrier 700 22
Orkla, Cl A 1,250 128
Petroleum Geo-Service* 500 29
Storebrand, Cl A* 9,124 76
----------
702
----------
SINGAPORE--0.8%
Asia Food & Property Warrants* 2,900 --
Asia Food & Property* 666 --
City Developments 15,000 74
Cycle & Carriage 7,000 32
DBS Land 20,000 34
Development Bank of Singapore, F 16,500 121
Development Bank of Singapore, F Rights* 3,000 6
Fraser and Neave 3,000 13
Keppel 39,750 120
Natsteel 16,000 25
Neptune Orient Lines 47,000 22
OCBC, F 20,135 114
Shangri-La Hotel 13,200 22
Singapore Airlines, F 24,000 171
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
Singapore Press Holdings 8,932 $ 102
Singapore Telecommunications 111,000 195
United Industrial 77,000 34
United Overseas Bank, F 19,000 105
----------
1,190
----------
SPAIN--3.2%
Acerinox 389 64
Argentaria 3,226 267
Autopistas Concensionaria 4,672 77
Banco Bilbao Vizcaya 14,285 671
Banco Central Hispano Americano 7,050 226
Banco Central Hispano Americano Rights* 7,050 6
Banco de Santander 10,713 534
Endesa 22,184 534
Financiera Alba 579 79
Fomento de Construcciones 1,360 72
Gas Natural 3,156 197
Iberdrola 17,705 269
Inmobil Metro Vasco 1,062 64
Mapfre 2,094 78
Repsol 6,748 344
Tabacalera, Cl A 663 74
Telefonica de Espana 19,802 873
Union Electrica Fenosa 6,913 91
Vallehermoso 1,215 47
Zardoya-Otis 2,020 73
----------
4,640
----------
SWEDEN--2.7%
ABB, Cl A 16,050 230
ABB, Cl B 5,500 76
AGA, Cl A 3,958 58
AGA, Cl B 3,450 47
Astra, Cl A 26,652 550
Astra, Cl B 7,933 158
Atlas Copco, Cl A 3,220 94
Electrolux, Cl B 1,791 148
Ericsson, Cl B 19,527 929
Hennes & Mauritz, Cl B 4,585 231
Scancem, Cl A 1,200 51
Skandia Forsakrings 2,066 135
Skandinaviska Enskilda Bank, Cl A 11,059 161
Skanska, Cl B 2,459 111
SKF, Cl B 3,000 71
STORA, Cl A 5,916 91
Svenska Cellulosa, Cl B 4,410 121
Svenska Handlesbanken, Cl A 4,451 206
Swedish Match 20,354 68
Trelleborg, Cl B 2,000 29
Volvo, Cl A 3,737 118
Volvo, Cl B 6,415 204
----------
3,887
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
90
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
SWITZERLAND--7.8%
Adecco 390 $ 138
Alusuisse Lonza, Registered 120 146
Asea Brown Boveri Group 190 284
Credit Suisse, Registered 5,554 1,112
Holderbank Financiere Glarus 201 211
Nestle, Registered 810 1,548
Novartis, Bearer 144 256
Novartis, Registered 1,291 2,286
Roche `Jubilee' Warrants* 209 30
Roche Holdings 146 1,581
Roche Holdings, Bearer 35 598
Sairgroup* 70 98
Schindler, PC 25 36
Schindler, Registered 25 37
Schweizerische Bankverein 195 4
SGS Societe Generale de Surveillance, R 116 40
SGS Societe Generale de Surveillance, Registered 29 52
SMH, Bearer 106 68
SMH, Registered 473 69
Swiss Bank 1,696 596
Swiss Reinsurance, Registered 302 664
UBS, Bearer 448 732
UBS, Registered 485 158
Valora Holdings 70 18
Zuerich Versicherungs, Registered 1,050 610
----------
11,372
----------
UNITED KINGDOM--21.9%
Abbey National 27,083 524
Anglian Water 6,437 101
Argos 9,590 100
Arjo Wiggins Appleton 26,535 88
Associated British Foods 15,765 162
Barclays 30,044 900
Bass 16,415 314
BAT Industries 69,191 705
BBA Group 9,021 67
Bg PLC 81,815 424
BICC 10,071 25
Blue Circle Industries 24,810 152
BOC 11,781 188
Boots 17,913 282
BPB 17,071 108
British Aerospace 8,506 280
British Airways 26,134 266
British Petroleum 147,095 2,121
British Sky Broadcasting 35,649 267
British Steel 38,008 90
British Telecommunications 134,370 1,461
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
BTR 85,410 $ 280
Burmah Castrol 4,461 90
Cable & Wireless 46,387 580
Cadbury Schweppes 22,324 310
Caradon 15,828 50
Carlton Communications 13,900 110
Centrica* 100,004 188
Coats Viyella 22,869 38
Commercial Union 12,556 245
Cortaulds 13,327 80
De La Rue 6,583 31
Diageo 87,289 1,027
Diageo, Cl B* 13,739 118
Electrocomponents 9,618 85
Elementis 8,336 19
EMI Group 14,007 116
English China Clays 7,955 32
General Electric 56,794 449
GKN 8,161 221
Glaxo Wellcome 72,766 1,956
Granada 17,687 318
Great Universal Stores 20,164 250
Guardian Royal Exchange 22,490 161
Hammerson 10,193 90
Hanson 16,883 102
HSBC Holdings 36,828 1,126
HSBC Holdings (75p) 17,759 579
IMI 4,909 37
Imperial Chemical Industries 14,118 252
Johnson Matthey 4,897 50
Kingfisher 11,542 216
Ladbroke 33,285 186
Land Securities 15,205 271
Lasmo 21,742 100
Legal & General 29,407 363
Lloyds TSB 107,378 1,669
Lonrho 19,560 36
LucasVarity 37,089 150
Marks & Spencer 57,513 569
MEPC 19,576 195
Mercury Asset Management 4,495 127
National Grid 37,301 220
National Power 25,856 265
Next 11,029 107
Pearson 13,897 226
Peninsular & Oriental 15,682 233
Pilkington 29,405 60
Provident Financial 5,461 86
Prudential 42,752 628
Racal Electronics 6,572 37
Rank Group 16,954 114
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
91
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
Redland 7,004 $ 40
Reed International 22,618 230
Reuters 28,619 308
Rexam 16,437 77
Rio Tinto 20,309 273
RMC 6,560 106
Rolls-Royce 42,003 196
Royal & Sun Alliance Insurance 32,523 414
Royal Bank of Scotland 17,283 268
Safeway 23,210 144
Sainsbury 38,729 333
Schroders 3,463 138
Scottish & Newcastle 13,226 207
Scottish Power 22,765 214
Sears 63,876 61
Sedgwick 17,952 49
Slough Estates 15,750 108
SmithKline Beecham 119,296 1,507
Smiths Industries 6,601 97
Southern Electric 10,510 96
T & N 14,489 62
Tate & Lyle 10,382 91
Tesco 42,298 424
Thames Water 9,079 144
Thorn 9,403 24
TI Group 10,548 92
Unilever 66,736 631
United Biscuits 15,174 64
United Utilities 14,193 210
Vodafone 66,584 696
Williams Holdings 17,360 139
Wolseley 12,805 98
Zeneca 18,908 814
----------
31,828
----------
TOTAL FOREIGN COMMON STOCKS
(Cost $121,066) 141,344
----------
FOREIGN PREFERRED STOCKS--0.7%
AUSTRALIA--0.2%
Newscorp 39,055 221
----------
GERMANY--0.4%
RWE* 4,450 200
SAP 910 387
Volkswagen 200 114
----------
701
----------
ITALY--0.1%
Fiat 31,900 84
----------
TOTAL FOREIGN PREFERRED STOCKS
(Cost $616) 1,006
----------
INTERNATIONAL INDEX FUND (CONCLUDED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
RELATED PARTY MONEY MARKET FUNDS--1.0%
First American Prime Obligations Fund (B) 1,481,175 $ 1,481
----------
TOTAL RELATED PARTY MONEY MARKET FUNDS
(Cost $1,481) 1,481
----------
TOTAL INVESTMENTS--98.8%
(Cost $123,163) 143,831
----------
OTHER ASSETS AND LIABILITIES, NET--1.2% 1,723
----------
NET ASSETS:
Portfolio Shares -- Class Y
($.0001 par value 2 billion authorized)
based on 11,594,900 outstanding shares 118,653
Portfolio Shares -- Retail Class A
($.0001 par value 2 billion authorized)
based on 129,019 outstanding shares 1,295
Portfolio Shares -- Retail Class B
($.0001 par value 2 billion authorized)
based on 3,569 outstanding shares 40
Accumulated net investment loss (70)
Accumulated net realized gain on investments 4,991
Accumulated net realized loss on foreign
currency contracts (6)
Net unrealized depreciation on forward foreign
currency contracts, foreign currency and
translation of other assets and liabilities in
foreign currency (17)
Net unrealized appreciation of investments 20,668
----------
TOTAL NET ASSETS--100.0% $ 145,554
----------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS Y $ 12.41
----------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE--RETAIL CLASS A $ 12.39
MAXIMUM SALES CHARGE OF 4.50% (1) 0.58
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 12.97
----------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--RETAIL CLASS B (2) $ 12.40
----------
(1) The offer price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 4.50%.
(2) Retail Class B has a contingent deferred sales charge. For a description of
a possible redemption charge, see the notes to the financial statements.
(A) Fair Valued Security
(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.
Cl--Class
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
92
INTERNATIONAL FUND
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
FOREIGN COMMON STOCKS--90.3%
DENMARK--1.6%
Danisco 21,300 $ 1,399
Novo-Nordisk, Cl B 23,900 4,068
----------
5,467
----------
FINLAND--2.5%
Nokia, Cl A 57,100 6,132
Pohjola Vakuutusosakeyhtio, Cl B 54,300 2,516
----------
8,648
----------
FRANCE--9.1%
Axa 126,500 13,025
Cap Gemini 60,600 7,120
Cap Gemini Rights* 60,600 187
Dexia France 16,200 2,170
Eridania Beghin-Say 7,500 1,501
France Telecom* 39,300 2,073
Promodes 6,400 3,077
Rhone-Poulenc, Cl A 56,000 2,846
----------
31,999
----------
GERMANY--10.6%
Adidas-Salomon 30,000 5,320
Allianz 33,000 9,966
Allianz Rights* 33,000 163
Deutsche Bank 117,900 8,871
Mannesmann 11,400 8,347
Schering 12,600 1,484
Veba 40,300 2,859
----------
37,010
----------
IRELAND--2.8%
CRH 58,800 883
Elan ADR* 87,800 5,674
Irish Life 347,800 3,200
----------
9,757
----------
ITALY--5.5%
Assicurazioni Generali 56,500 1,742
Credito Italiano 1,640,500 8,139
Istituto Mobiliare Italiano 166,600 2,705
Pirelli 200,000 767
Telecom Italia 182,000 1,434
Telecom Italia RNC 116,000 711
TIM 714,100 3,837
----------
19,335
----------
INTERNATIONAL FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
JAPAN--5.3%
Bridgestone 60,000 $ 1,360
Fuji Photo Film 72,000 2,681
Minebea 81,000 888
NTT 150 1,250
Rohm 10,000 916
Sony 80,000 6,786
Takeda Chemical 192,000 4,886
----------
18,767
----------
MEXICO--0.6%
Grupo Elektra CPO 981,000 1,503
Grupo Posadas, Cl A* 825,000 611
----------
2,114
----------
NETHERLANDS--10.4%
Aegon 59,000 7,177
Ahold 19,900 643
Baan ADR* 75,000 3,591
Benckiser, Cl B* 26,600 1,469
Fortis Amev 18,300 1,080
Getronics 73,800 3,169
Ing Groep 130,200 7,391
Unilever 72,800 4,912
VNU 115,000 3,934
Wolters Kluwer 22,000 3,146
----------
36,512
----------
PORTUGAL--2.0%
Banco Espirito Santo 19,900 919
BPI-SGPS 23,400 900
Portugal Telecom 97,300 5,061
----------
6,880
----------
SPAIN--5.3%
Banco Bilbao Vizcaya 78,700 3,695
Banco Popular Espanol 71,200 6,913
Iberdrola 204,500 3,107
Telefonica de Espana 112,000 4,938
----------
18,653
----------
SWEDEN--3.3%
Astra, Cl A 154,900 3,198
Electrolux, Cl B 10,200 842
Ericsson Telephone, ADR 100,000 4,756
Securitas, Cl B 16,100 548
Skandia Forsakrings 32,000 2,086
----------
11,430
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
93
INTERNATIONAL FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
SWITZERLAND--11.8%
Credit Suisse, Registered 37,000 $ 7,405
Nestle, Registered 4,300 8,219
Novartis, Registered 4,000 7,081
Roche Holdings 530 5,738
Swiss Reinsurance, Registered 2,200 4,834
UBS, Bearer 4,900 8,006
----------
41,283
----------
UNITED KINGDOM--19.5%
Abbey National 288,500 5,585
Allied Irish Banks 207,000 2,565
Bank of Ireland 104,100 2,053
British Telecommunications 74,300 808
Cadbury Schweppes 229,900 3,189
Commercial Union 87,100 1,699
Glaxo Wellcome 282,300 7,590
Kingfisher 313,200 5,864
Logica 132,700 3,613
Natwest Bank 370,000 6,766
Prudential 162,800 2,391
Royal Bank of Scotland 106,600 1,655
SmithKline Beecham 922,500 11,653
Unilever 300,000 2,836
Vodafone 684,100 7,153
Zeneca Group 70,000 3,015
----------
68,435
----------
TOTAL FOREIGN COMMON STOCKS
(Cost $248,925) 316,290
----------
FOREIGN PREFERRED STOCKS--3.5%
GERMANY--3.5%
SAP 28,800 12,249
----------
TOTAL FOREIGN PREFERRED STOCKS
(Cost $6,784) 12,249
----------
RELATED PARTY MONEY MARKET FUNDS--3.6%
First American Prime
Obligations Fund (A) 12,593,801 12,594
----------
TOTAL RELATED PARTY MONEY MARKET FUNDS
(Cost $12,594) 12,594
----------
TOTAL INVESTMENTS--97.4%
(Cost $268,303) 341,133
----------
OTHER ASSETS AND LIABILITIES, NET--2 6% 8,952
----------
INTERNATIONAL FUND (CONCLUDED)
DESCRIPTION Value (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares -- Class Y
($.0001 par value 2 billion authorized)
based on 24,855,139 outstanding shares $ 269,768
Portfolio Shares -- Retail Class A
($.0001 par value 2 billion authorized)
based on 798,333 outstanding shares 7,017
Portfolio Shares -- Retail Class B
($.0001 par value 2 billion authorized)
based on 196,615 outstanding shares 2,088
Accumulated net investment loss (120)
Accumulated net realized gain on investments 1,557
Accumulated net realized loss from foreign
currency transactions (5,126)
Net unrealized appreciation on forward foreign
currency contracts, foreign currency and translation
of other assets and liabilities in foreign currency 2,071
Net unrealized appreciation of investments 72,830
----------
TOTAL NET ASSETS--100.0% $ 350,085
----------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS Y $ 13.54
----------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE--RETAIL CLASS A $ 13.55
MAXIMUM SALES CHARGE OF 4.50% (1) 0.64
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 14.19
----------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--RETAIL CLASS B (2) $ 13.31
----------
(1) The offer price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 4.50%.
(2) Retail Class B has a contingent deferred sales charge. For a description of
a possible redemption charge, see the notes to the financial statements.
(A) 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
ADS--American Depository Shares
Cl--Class
GDR--Global Depository Receipts
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
94
HEALTH SCIENCES FUND
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
COMMON STOCKS--91.2%
CHEMICALS--0.7%
Cambrex 6,100 $ 307
----------
ELECTRICAL TECHNOLOGY--0.9%
Photoelectron* 65,000 390
----------
HEALTH AND ALLIED SERVICES--17.8%
Ameripath* 25,000 461
Columbia/HCA Healthcare 25,000 806
Medpartners* 120,000 1,230
Genesis Health Ventures* 29,200 821
Health Management Associates, Cl A* 36,000 1,031
Integrated Health Services 25,000 983
Quorum Health Group* 55,000 1,849
Curative Technologies* 10,000 333
----------
7,514
----------
INSURANCE--4.9%
Pacificare Health Systems, Cl B* 10,200 768
United Healthcare 20,000 1,295
----------
2,063
----------
MEDICAL DEVICES--6.9%
Cyberonics* 60,000 1,912
Micro Therapeutics* 50,000 494
Nitinol Medical Technologies* 50,000 516
----------
2,922
----------
MEDICAL PRODUCTS & SERVICES--29.6%
American Oncology Resources* 34,000 518
Apple Orthodontix, Cl A* 50,000 628
Applied Biometrics* 13,000 92
Arrow International 15,000 516
ATS Medical* 83,475 657
Boston Biomedical* 55,000 385
Boston Scientific* 30,000 2,025
Cambridge Heart* 45,000 399
Cardima* 50,000 206
Closure Medical* 36,000 779
Conceptus* 75,000 263
HBO & Company 7,966 481
Heska* 46,000 684
Idexx Laboratories* 50,200 904
Medical Alliance* 8,500 31
Mentor 30,000 829
Neuromedical Systems* 10,000 26
Novoste* 10,000 259
Physiometrix* 50,000 64
HEALTH SCIENCES FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
Respironics* 36,880 $ 1,067
Ventana Medical Systems* 41,400 1,102
Vista Medical Technologies* 50,000 556
----------
12,471
----------
MISCELLANEOUS BUSINESS SERVICES--0.9%
Quality Systems* 20,000 149
Transition Systems* 11,500 234
----------
383
----------
PHARMACEUTICALS--20.5%
Algos Pharmaceuticals* 25,000 756
Biochem Pharmaceuticals* 60,000 1,451
Celgene* 20,000 218
Centocor* 23,000 1,026
Chirex* 35,000 663
Columbia Laboratories* 13,800 191
Elan, ADR* 28,400 1,835
Guilford Pharmaceuticals* 11,000 242
Lifecore Biomedical* 40,000 935
Pharmerica* 27,000 402
Sepracor* 21,100 899
----------
8,618
----------
REAL ESTATE INVESTMENT TRUSTS--7.5%
Healthcare Realty Trust 37,300 1,054
National Health Investors 26,600 1,061
Nationwide Health Properties 41,400 1,035
----------
3,150
----------
TESTING LABORATORIES--1.0%
Collaborative Clinical Research* 100,000 425
----------
WHOLESALE--0.5%
Graham Field Health Products* 25,000 200
----------
TOTAL COMMON STOCKS (Cost $29,800) 38,443
----------
RELATED PARTY MONEY MARKET FUND--8.7%
First American Prime Obligations Fund (A) 3,645,766 3,646
----------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $3,646) 3,646
----------
TOTAL INVESTMENTS--(Cost $33,446)
99.9% 42,089
----------
OTHER ASSETS AND LIABILITIES, NET--0.1% (B) 43
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
95
HEALTH SCIENCES FUND (CONCLUDED)
DESCRIPTION Value (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares -- Class Y
($.0001 par value -- 2 billion authorized)
based on 3,415,936 outstanding shares $ 27,667
Portfolio Shares -- Retail Class A
($.0001 par value -- 2 billion authorized)
based on 213,880 outstanding shares 2,349
Portfolio Shares -- Retail Class B
($.0001 par value -- 2 billion authorized)
based on 67,198 outstanding shares 666
Undistributed net investment income 13
Accumulated net realized gain on investments 2,795
Net unrealized appreciation of investments 8,642
----------
TOTAL NET ASSETS--100.0% $ 42,132
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--CLASS Y $ 11.40
----------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE--RETAIL CLASS A $ 11.36
MAXIMUM SALES CHARGE OF 4.50% (1) 0.54
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 11.90
----------
NET ASSET VALUE AND OFFERING
PRICE PER SHARE--RETAIL CLASS B (2) $ 11.16
----------
* 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 also the notes to the financial
statements.
(B) Other assets and liabilities representing greater than five percent of
total net assets include the following (000):
Cash collateral received for securities on loan $ 10,640
Payable upon return of securities on loan $(10,640)
ADR--American Depository Receipt
Cl--Class
TECHNOLOGY FUND
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
COMMON STOCKS--88.1%
AEROSPACE & DEFENSE--1.2%
Remec* 65,000 $ 1,865
----------
COMMUNICATIONS EQUIPMENT--16.3%
Ciena* 45,000 1,918
General Instrument* 100,000 2,094
L.M. Ericsson Telephone, ADR 65,000 3,092
Nokia, ADR 55,000 5,937
Novatel* 175,000 1,717
Orckit Communications* 80,000 1,475
Reltec* 10,000 354
Tellabs* 90,000 6,041
Uniphase* 35,000 1,472
Viasat* 90,000 1,598
----------
25,698
----------
COMPUTER COMMUNICATIONS EQUIPMENT--0.5%
Visual Networks* 31,200 811
----------
COMPUTERS & SERVICES--15.3%
3Com* 50,000 1,797
Apex PC Solutions* 70,000 1,881
Bay Networks* 60,000 1,627
BMC Software* 40,000 3,352
Cisco Systems* 90,000 6,154
Command Systems* 75,000 1,069
Compaq Computer* 40,000 1,035
Gateway 2000* 50,000 2,347
Inter-Tel 75,000 2,020
Iomega* 100,000 687
Quantum* 100,000 2,131
----------
24,100
----------
MISCELLANEOUS BUSINESS SERVICES--20.7%
America Online* 45,000 3,074
Ansoft* 30,000 422
Bea Systems* 65,000 1,828
Cadence Design Systems* 60,000 2,077
Cats Software* 250,000 1,375
CCC Information Services Group* 60,000 1,650
Computer Learning Centers* 30,000 502
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
96
TECHNOLOGY FUND (CONTINUED)
DESCRIPTION Shares Value (000)
- --------------------------------------------------------------------------------
Engineering Animation* 36,000 $ 1,494
Information Advantage* 145,000 1,124
Information Management Associates* 130,000 1,739
Information Management Resources* 40,000 2,355
Networks Associates* 30,000 1,987
ONTRACK Data International* 75,500 1,227
Premisys Communications* 70,000 2,008
Rogue Wave Software* 100,000 1,506
Seer Technologies* 200,000 613
Sun Microsystems* 85,000 3,546
Symix Systems* 100,000 1,800
VDI Media* 60,000 975
Viasoft* 45,000 1,232
----------
32,534
----------
SEMI-CONDUCTORS/INSTRUMENTS--5.8%
Altera* 60,000 2,265
Atmi* 40,000 1,210
Axsys Technologies* 40,000 1,060
Intel 25,000 1,952
Pericom Semiconductor* 120,000 923
PMC-Sierra* 45,000 1,710
----------
9,120
----------
SERVICES-PREPACKAGED SOFTWARE--25.7%
Broadvision* 50,000 894
Computer Associates International 55,000 3,176
Crystal Systems Solutions* 65,000 1,198
Dr Solomon's Group Plc, ADR* 40,000 1,265
Electronic Arts* 70,000 3,286
HNC Software* 40,000 1,505
I2 Technologies* 30,000 1,969
Industri-Matematik International* 55,000 1,726
Intelligroup* 150,000 2,428
JDA Software Group* 35,000 1,859
Legato Systems* 40,000 2,375
Level 8 Systems* 80,000 970
Mechanical Dynamics* 80,000 830
Meta Group* 50,000 1,725
TECHNOLOGY FUND (CONTINUED)
DESCRIPTION Shares/Par (000) Value (000)
- --------------------------------------------------------------------------------
Microsoft* 20,000 $ 1,790
National Instruments* 70,500 2,406
Parametric Technology* 100,000 3,331
Peoplesoft* 110,000 5,796
Sapient* 44,000 2,085
----------
40,614
----------
TELEPHONES & TELECOMMUNICATION--2.6%
Amerlink* 50,000 1,250
Exodus Communications* 23,000 644
Lightbridge* 125,000 2,258
----------
4,152
----------
TOTAL COMMON STOCKS
(Cost $101,711) 138,894
----------
WARRANTS--0.1%
Optisystems Warrants* 100,000 112
----------
TOTAL WARRANTS
(Cost $71) 112
----------
CONVERTIBLE BONDS--0.6%
Vantive, 23.85 Shares
4.750%, 09/01/02 $ 750 889
----------
TOTAL CONVERTIBLE BONDS
(Cost $750) 889
----------
RELATED PARTY MONEY MARKET FUND--10.1%
First American Prime
Obligations Fund (A) 15,881,719 15,882
----------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $15,882) 15,882
----------
TOTAL INVESTMENTS--98.9%
(Cost $118,414) 155,777
----------
OTHER ASSETS AND LIABILITIES, NET--1.1% (B) 1,713
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
97
TECHNOLOGY FUND (CONCLUDED)
DESCRIPTION Value (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares -- Class Y
($.0001 par value -- 2 billion authorized)
based on 7,090,164 outstanding shares $ 96,419
Portfolio Shares -- Retail Class A
($.0001 par value -- 2 billion authorized)
based on 624,017 outstanding shares 9,531
Portfolio Shares -- Retail Class B
($.0001 par value -- 2 billion authorized)
based on 505,183 outstanding shares 8,136
Accumulated net investment loss (368)
Accumulated net realized gain on investments 6,409
Net unrealized appreciation of investments 37,363
----------
TOTAL NET ASSETS--100.0% $ 157,490
----------
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION
PRICE PER SHARE--CLASS Y $ 19.22
----------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE--RETAIL CLASS A $ 19.07
MAXIMUM SALES CHARGE OF 4.50% (1) 0.90
----------
OFFERING PRICE PER SHARE--RETAIL CLASS A $ 19.97
----------
NET ASSET VALUE AND OFFERING
PRICE PER SHARE--RETAIL CLASS B (2) $ 18.40
----------
* 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 also the notes to the financial
statements.
(B) Other assets and liabilities representing greater than five percent of
total net assets include the following (000):
Cash collateral received for securities on loan $ 49,001
Payable upon return of securities on loan $(49,001)
ADR--American Depository Receipt
Cl--Class
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
98
(This page has been left blank intentionally.)
<PAGE>
99
STATEMENTS OF OPERATIONS (000)
For the six month period ended March 31, 1998
(Unaudited)
<TABLE>
<CAPTION>
PRIME GOVERNMENT TREASURY TAX FREE
OBLIGATIONS OBLIGATIONS OBLIGATIONS OBLIGATIONS
FUND FUND FUND FUND (1)
............. ............. ............. .............
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 149,157 $ 41,915+ $ 118,969 $ 1,878
--------- --------- --------- ---------
EXPENSES:
Investment advisory fees 10,328 2,962 8,480 215
Less: Waiver of investment advisory fees (1,665) (479) (1,299) (69)
Distribution fees - Retail Class A 721 -- 74 32
Distribution fees - Retail Class B 11 -- -- --
Distribution fees - Class D 171 320 2,247 --
Administrator fees 1,576 451 1,292 32
Custodian fees 775 222 636 16
Registration fees 232 59 125 27
Professional fees 102 30 83 5
Transfer agent fees 68 22 35 10
Printing 129 37 106 3
Directors' fees 26 7 20 1
Amortization of organizational costs -- -- 2 --
Other 44 20 56 2
--------- --------- --------- ---------
TOTAL NET EXPENSES 12,518 3,651 11,857 274
========= ========= ========= =========
Investment income - net 136,639 38,264 107,112 1,604
--------- --------- --------- ---------
NET REALIZED GAIN (LOSS) ON INVESTMENTS (5) (359) 15 --
========= ========= ========= =========
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 136,634 $ 37,905 $ 107,127 $ 1,604
========= ========= ========= =========
</TABLE>
+ Includes income from securities lending program. See the Notes to the
Financial Statements for additional information.
(1) For the four month period December 1, 1997 to March 31, 1998.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
100
STATEMENTS OF OPERATIONS (000)
For the six month period ended March 31, 1998
(Unaudited)
<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 $ 5,754+ $ 12,690+ $ 6,541 $ 31,166+
Dividends -- -- -- --
-------- -------- -------- --------
TOTAL INVESTMENT INCOME 5,754 12,690 6,541 31,166
======== ======== ======== ========
EXPENSES:
Investment advisory fees 669 1,475 715 3,567
Less: Waiver of investment advisory fees (261) (343) (178) (842)
Administrator fees 106 233 113 564
Transfer agent fees 11 12 12 31
Amortization of organizational costs -- -- -- --
Custodian fees 29 63 31 153
Directors' fees 1 2 1 5
Registration fees 8 10 5 31
Professional fees 4 8 4 21
Printing 5 10 5 25
Distribution fees - Retail Class A 7 5 5 13
Waiver of distribution fees - Retail Class A (7) (5) (5) --
Less: Distribution fees - Retail Class B -- -- -- 79
Other 2 5 7 12
-------- -------- -------- --------
TOTAL NET EXPENSES 574 1,475 715 3,659
======== ======== ======== ========
INVESTMENT INCOME - NET 5,180 11,215 5,826 27,507
======== ======== ======== ========
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS - NET:
Net realized gain on investments 224 5,322 53 12,254
Net change in unrealized appreciation (depreciation) of investments (360) (2,418) 866 806
-------- -------- -------- --------
NET GAIN (LOSS) ON INVESTMENTS (136) 2,904 919 13,060
======== ======== ======== ========
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 5,044 $ 14,119 $ 6,745 $ 40,567
======== ======== ======== ========
</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>
101
<TABLE>
<CAPTION>
CALIFORNIA COLORADO MINNESOTA OREGON REAL
INTERMEDIATE INTERMEDIATE INTERMEDIATE INTERMEDIATE INTERMEDIATE ESTATE
TAX FREE TAX FREE TAX FREE TAX FREE TAX FREE BALANCED SECURITIES
FUND FUND FUND FUND FUND FUND FUND
.............. .............. .............. .............. .............. ........... ............
<S> <C> <C> <C> <C> <C> <C>
$ 846 $1,522 $7,723 $4,664 $11,183 $ 8,216+ $ 117+
-- -- -- -- -- 2,245 1,493
----- ------ ------ ------ ------- --------- --------
846 1,522 7,723 4,664 11,183 10,461 1,610
===== ====== ====== ====== ======= ========= ========
118 206 1,081 633 1,545 2,018 204
(43) (58) (257) (158) (410) (248) (37)
19 33 171 100 245 319 32
14 11 15 9 13 74 17
-- 1 1 -- -- -- 1
5 9 46 27 66 86 9
-- -- 2 1 2 3 --
1 1 5 5 9 20 4
1 1 6 4 9 12 1
1 1 8 5 11 14 1
-- 5 10 -- 7 49 3
-- (5) (10) -- (7) -- --
-- -- -- -- -- 261 17
-- 1 4 3 6 8 1
----- ------- ------ ------ -------- --------- --------
116 206 1,082 629 1,496 2,616 253
===== ======= ====== ====== ======== ========= ========
730 1,316 6,641 4,035 9,687 7,845 1,357
===== ======= ====== ====== ======== ========= ========
57 44 950 445 1,958 38,100 1,717
106 345 918 (35) 287 (4,454) (1,632)
----- ------- ------ ------ -------- --------- --------
163 389 1,868 410 2,245 33,646 85
===== ======= ====== ====== ======== ========= ========
$ 893 $1,705 $8,509 $4,445 $11,932 $ 41,491 $ 1,442
===== ======= ====== ====== ======== ========= ========
</TABLE>
<PAGE>
102
STATEMENTS OF OPERATIONS (000)
For the six month period ended March 31, 1998
(Unaudited)
<TABLE>
<CAPTION>
EQUITY EQUITY
INCOME INDEX
FUND FUND
........... ...........
<S> <C> <C>
INVESTMENT INCOME:
Interest $ 1,909+ $ 1,207+
Dividends 5,174 6,393
Less: Foreign taxes withheld -- --
-------- --------
TOTAL INVESTMENT INCOME 7,083 7,600
======== ========
EXPENSES:
Investment advisory fees 1,365 2,986
Less: Waiver of investment advisory fees (232) (2,229)
Administrator fees 216 472
Transfer agent fees 20 53
Amortization of organizational costs 1 --
Custodian fees 58 128
Directors' fees 2 4
Registration fees 10 30
Professional fees 8 17
Printing 10 21
Pricing fees -- --
Distribution fees - Retail Class A 11 35
Distribution fees - Retail Class B 36 141
Other 5 12
-------- --------
TOTAL NET EXPENSES 1,510 1,670
======== ========
Investment income (loss) - net 5,573 5,930
-------- --------
REALIZED AND UNREALIZED GAINS (LOSSES)
ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS - NET:
Net realized gain on investments 12,872 44,558
Net realized gain on futures contracts -- 2,922
Net realized loss on closing and expiration of options written -- --
Net realized loss on forward foreign currency contracts
and foreign currency transactions -- --
Net change in unrealized appreciation (depreciation) of investments 36,835 96,432
Net change in unrealized appreciation of futures contracts -- 89
Net change in unrealized depreciation of written options contracts -- --
Net change in unrealized depreciation of forward foreign
currency contracts, foreign currency and translation of
other assets and liabilities in foreign currency -- --
-------- --------
NET GAIN (LOSS) ON INVESTMENTS 49,707 144,001
======== ========
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 55,280 $149,931
======== ========
</TABLE>
[WIDE TABLE CONTINUED FROM ABOVE]
<TABLE>
<CAPTION>
LARGE CAP LARGE CAP MID CAP
VALUE FUND GROWTH FUND VALUE FUND
............ ............. ............
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 3,873+ $ 1,312+ $ 760+
Dividends 9,789 4,601 3,822
Less: Foreign taxes withheld -- -- --
--------- -------- --------
TOTAL INVESTMENT INCOME 13,662 5,913 4,582
========= ======== ========
EXPENSES:
Investment advisory fees 4,939 2,479 2,191
Less: Waiver of investment advisory fees (570) (233) --
Administrator fees 781 393 347
Transfer agent fees 125 27 98
Amortization of organizational costs -- 1 --
Custodian fees 212 106 94
Directors' fees 7 3 3
Registration fees 70 18 28
Professional fees 28 14 12
Printing 35 18 16
Pricing fees -- -- --
Distribution fees - Retail Class A 79 18 47
Distribution fees - Retail Class B 288 49 200
Other 17 9 8
--------- -------- --------
TOTAL NET EXPENSES 6,011 2,902 3,044
========= ======== ========
Investment income (loss) - net 7,651 3,011 1,538
--------- -------- --------
REALIZED AND UNREALIZED GAINS (LOSSES)
ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS - NET:
Net realized gain on investments 151,929 31,682 78,939
Net realized gain on futures contracts -- -- --
Net realized loss on closing and expiration of options written -- -- (7,033)
Net realized loss on forward foreign currency contracts
and foreign currency transactions -- -- --
Net change in unrealized appreciation (depreciation) of investments (24,350) 54,178 (8,679)
Net change in unrealized appreciation of futures contracts -- -- --
Net change in unrealized depreciation of written options contracts -- -- (1,633)
Net change in unrealized depreciation of forward foreign
currency contracts, foreign currency and translation of
other assets and liabilities in foreign currency -- -- --
--------- -------- --------
NET GAIN (LOSS) ON INVESTMENTS 127,579 85,860 61,594
========= ======== ========
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 135,230 $ 88,871 $ 63,132
========= ======== ========
</TABLE>
* Includes the following amounts due to Investments in Common Stocks of
Affiliates (000): $43 of dividend income, $11,270 of realized losses, and
$(17,730) of change in unrealized depreciation of investments.
+ Includes income from securities lending program. See the Notes to the
Financial Statements for additional information.
(1) For the four month period December 1, 1997 to March 31, 1998.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
103
<TABLE>
<CAPTION>
REGIONAL SMALL MICRO CAP INTERNATIONAL HEALTH
EQUITY SMALL CAP CAP VALUE VALUE INDEX INTERNATIONAL SCIENCES TECHNOLOGY
FUND GROWTH FUND FUND (1) FUND FUND (1) FUND FUND FUND
........... ............. ........... ........... ............... ............... ........... ............
<S> <C> <C> <C> <C> <C> <C> <C>
$ 963+ $ 515+ $ 1,067+ $ 395+ $ 83 $ 324 $ 108+ $ 245+
1,115* 164 1,176 755 856 1,355 140 105
-- -- -- -- (91) (133) -- --
-------- ------ -------- --------- ------- -------- ------- --------
2,078 679 2,243 1,150 848 1,546 248 350
======== ====== ======== ========= ======= ======== ======= ========
1,399 554 1,164 745 336 1,637 140 514
(13) -- -- -- (99) (74) (8) (1)
222 88 183 118 53 146 22 81
101 17 15 19 7 19 16 31
-- 1 -- -- -- 1 -- 1
60 24 50 32 48 250 6 22
2 1 2 1 1 1 -- 1
14 6 10 3 4 7 1 4
8 3 9 4 4 5 1 3
10 4 8 6 2 6 1 4
-- -- -- -- 4 8 -- --
43 7 16 -- -- 8 2 11
201 7 -- 1 -- 11 3 41
5 3 4 3 1 2 1 2
-------- ------ -------- --------- ------- -------- ------- ---------
2,052 715 1,461 932 361 2,027 185 714
======== ====== ======== ========= ======= ======== ======= =========
26 (36) 782 218 487 (481) 63 (364)
-------- ------ -------- --------- ------- -------- ------- ---------
17,848* 8,196 6,678 19,788 1,908 5,589 3,495 8,450
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- (6) (5,126) -- --
137* 1,519 31,898 (23,834) 16,278 30,614 (402) (5,717)
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- (9) 3,425 -- --
-------- ------ -------- --------- ------- -------- ------- ---------
17,985 9,715 38,576 (4,046) 18,171 34,502 3,093 2,733
======== ====== ======== ========= ======= ======== ======= =========
$ 18,011 $9,679 $ 39,358 $ (3,828) $18,658 $ 34,021 $ 3,156 $ 2,369
======== ====== ======== ========= ======= ======== ======= =========
</TABLE>
<PAGE>
104
(This page has been left blank intentionally.)
<PAGE>
105
STATEMENTS OF CHANGES IN NET ASSETS (000)
(Unaudited)
<TABLE>
<CAPTION>
PRIME GOVERNMENT
OBLIGATIONS FUND OBLIGATIONS FUND
.............................. ..............................
10/1/97 10/1/96 10/1/97 10/1/96
to to to to
3/31/98 9/30/97 3/31/98 9/30/97
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income - net $ 136,639 $ 192,633 $ 38,264 $ 61,132
Net realized gain (loss) on investments (5) -- (359) (6)
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 136,634 192,633 37,905 61,126
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class Y (115,955) (176,476) (27,459) (45,205)
Retail Class A (14,566) (8,570) -- --
Retail Class B (44) (131) -- --
Class D (5,903) (7,465) (10,805) (15,962)
------------ ------------ ------------ ------------
TOTAL DISTRIBUTIONS (136,468) (192,642) (38,264) (61,167)
============ ============ ============ ============
CAPITAL SHARE TRANSACTIONS
AT NET ASSET VALUE OF $1.00 PER SHARE(1):
Class Y:
Proceeds from sales 5,103,851 14,572,560 1,772,656 5,674,757
Shares issued in connection with acquisition of
Qualivest Fund 257,499 -- -- --
Shares issued in connection with acquisition of
Common Trust Fund Assets -- 140,497 -- --
Reinvestment of distributions 40,477 60,409 14,520 24,252
Payments for redemptions (4,100,728) (14,323,805) (1,611,523) (5,530,377)
------------ ------------ ------------ ------------
Increase in net assets from
Class Y transactions 1,301,099 449,661 175,653 168,632
------------ ------------ ------------ ------------
Retail Class A:
Proceeds from sales 1,191,638 620,931 -- --
Shares issued in connection with acquisition of
Qualivest Fund 226,201 -- -- --
Reinvestment of distributions 11,679 8,075 -- --
Payments for redemptions (759,670) (545,891) -- --
------------ ------------ ------------ ------------
Increase (decrease) in net assets from
Retail Class A transactions 669,848 83,115 -- --
------------ ------------ ------------ ------------
Retail Class B:
Proceeds from sales 1,424 7,242 -- --
Reinvestment of distributions 41 121 -- --
Payments for redemptions (1,572) (7,107) -- --
------------ ------------ ------------ ------------
Increase (decrease) in net assets from
Retail Class B transactions (107) 256 -- --
------------ ------------ ------------ ------------
Class D:
Proceeds from sales 829,973 714,714 1,202,632 1,115,568
Payments for redemptions (486,791) (710,856) (1,112,035) (1,047,740)
------------ ------------ ------------ ------------
Increase (Decrease) in net assets from Class D
transactions 343,182 3,858 90,597 67,828
------------ ------------ ------------ ------------
Increase in net assets from
capital share transactions 2,314,022 536,890 266,250 236,460
------------ ------------ ------------ ------------
Total increase (decrease) in net assets 2,314,188 536,881 265,891 236,419
NET ASSETS AT BEGINNING OF PERIOD 3,949,216 3,412,335 1,283,395 1,046,976
============ ============ ============ ============
NET ASSETS AT END OF PERIOD (2) $ 6,263,404 $ 3,949,216 $ 1,549,286 $ 1,283,395
============ ============ ============ ============
</TABLE>
[WIDE TABLE CONTINUED FROM ABOVE]
<TABLE>
<CAPTION>
TREASURY TAX FREE
OBLIGATIONS FUND OBLIGATIONS FUND
............................ .........................................
10/1/97 10/1/96 12/1/97 8/1/97 8/1/96
to to to to to
3/31/98 9/30/97 3/31/98 11/30/97 7/31/97
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Investment income - net $ 107,112 $ 152,825 $ 1,604 $ 379 $ 1,062
Net realized gain (loss) on investments 15 19 -- -- (1)
----------- ----------- ----------- ----------- -----------
Net increase in net assets resulting from operations 107,127 152,844 1,604 379 1,061
----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class Y (30,555) (35,311) (1,242) (94) (186)
Retail Class A (1,443) -- (359) (287) (876)
Retail Class B -- -- -- -- --
Class D (75,107) (117,545) (4) -- --
----------- ----------- ----------- ----------- -----------
TOTAL DISTRIBUTIONS (107,105) (152,856) (1,605) (381) (1,062)
=========== =========== =========== =========== ===========
CAPITAL SHARE TRANSACTIONS
AT NET ASSET VALUE OF $1.00 PER SHARE(1):
Class Y:
Proceeds from sales 3,797,663 5,288,369 225,045 13,113 40,937
Shares issued in connection with acquisition of
Qualivest Fund 11,790 -- -- -- --
Shares issued in connection with acquisition of
Common Trust Fund Assets -- 6,884 -- -- --
Reinvestment of distributions 3,911 4,510 44 62 112
Payments for redemptions (3,246,008) (4,719,356) (78,010) (11,608) (35,807)
----------- ----------- ----------- ----------- -----------
Increase in net assets from
Class Y transactions 567,356 580,407 147,079 1,567 5,242
----------- ----------- ----------- ----------- -----------
Retail Class A:
Proceeds from sales 151,771 -- 57,207 13,623 53,776
Shares issued in connection with acquisition of
Qualivest Fund 86,624 -- -- -- --
Reinvestment of distributions 1,113 -- 277 295 854
Payments for redemptions (159,162) -- (44,384) (16,923) (53,104)
----------- ----------- ----------- ----------- -----------
Increase (decrease) in net assets from
Retail Class A transactions 80,346 -- 13,100 (3,005) 1,526
----------- ----------- ----------- ----------- -----------
Retail Class B:
Proceeds from sales -- -- -- -- --
Reinvestment of distributions -- -- -- -- --
Payments for redemptions -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Increase (decrease) in net assets from
Retail Class B transactions -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Class D:
Proceeds from sales 4,494,550 6,989,426 4,266 1 --
Payments for redemptions (3,969,654) (5,758,331) (11) -- --
----------- ----------- ----------- ----------- -----------
Increase (Decrease) in net assets from Class D
transactions 524,896 1,231,095 4,255 1 --
----------- ----------- ----------- ----------- -----------
Increase in net assets from
capital share transactions 1,172,598 1,811,502 164,434 (1,437) 6,768
----------- ----------- ----------- ----------- -----------
Total increase (decrease) in net assets 1,172,620 1,811,490 164,433 (1,439) 6,767
NET ASSETS AT BEGINNING OF PERIOD 3,745,012 1,933,522 39,366 40,805 34,038
=========== =========== =========== =========== ===========
NET ASSETS AT END OF PERIOD (2) $ 4,917,632 $ 3,745,012 $ 203,799 $ 39,366 $ 40,805
=========== =========== =========== =========== ===========
</TABLE>
(2) Includes undistributed net investment income (000) of $171 and $0 for Prime
Obligations Fund, $0 and $0 for Government Obligations Fund, and $7 and $0
for Treasury Obligations Fund at March 31, 1998 and September 30, 1997,
respectively. Includes undistributed net investment income (000) of $1, $2,
$4 for Tax Free Obligations Fund for March 31, 1998, November 30, 1997 and
July 31, 1997, respectively.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
106
STATEMENTS OF CHANGES IN NET ASSETS (000)
(Unaudited)
<TABLE>
<CAPTION>
LIMITED TERM INTERMEDIATE
INCOME FUND TERM INCOME FUND
......................... .........................
10/1/97 10/1/96 10/1/97 10/1/96
to to to to
3/31/98 9/30/97 3/31/98 9/30/97
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income - net $ 5,180 $ 6,613 $ 11,215 $ 8,640
Net realized gain (loss) on investments 224 29 5,322 263
Net change in unrealized appreciation
(depreciation) of investments (360) 508 (2,418) 2,441
--------- --------- --------- ---------
Net increase in net assets resulting from operations 5,044 7,150 14,119 11,344
--------- --------- --------- ---------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class Y (4,963) (6,216) (11,092) (8,507)
Retail class A (137) (407) (105) (133)
Retail class B -- -- -- --
Net realized gain on investments:
Class Y -- -- (624) (620)
Retail class A -- -- (6) (15)
Retail class B -- -- -- --
Tax return of capital
Class Y -- -- -- --
Retail class A -- -- -- --
Retail class B -- -- -- --
--------- --------- --------- ---------
TOTAL DISTRIBUTIONS (5,100) (6,623) (11,827) (9,275)
========= ========= ========= =========
CAPITAL SHARE TRANSACTIONS (1):
Class Y:
Proceeds from sales 40,423 54,226 39,166 33,377
Shares issued in connection with acquisition of
Common Trust Fund Assets -- 71,476 187,587 241,021
Shares issued in connection with acquisition of Qualivest Fund* -- -- -- --
Reinvestment of distributions 2,325 4,328 4,029 3,577
Payments for redemptions (37,085) (39,753) (115,077) (54,475)
--------- --------- --------- ---------
Increase (decrease) in net assets from
Class Y transactions 5,663 90,277 115,705 223,500
--------- --------- --------- ---------
Retail class A:
Proceeds from sales 4,639 1,851 1,735 1,309
Shares issued in connection with acquisition of Qualivest Fund* -- -- 814 --
Reinvestment of distributions 131 391 73 111
Payments for redemptions (6,997) (2,741) (798) (1,170)
--------- --------- --------- ---------
Increase (decrease) in net assets from
Retail class A transactions (2,227) (499) 1,824 250
--------- --------- --------- ---------
Retail class B:
Proceeds from sales -- -- -- --
Shares issued in connection with acquisition of Qualivest Fund* -- -- -- --
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 3,436 89,778 117,529 223,750
--------- --------- --------- ---------
Total increase (decrease) in net assets 3,380 90,305 119,821 225,819
NET ASSETS AT BEGINNING OF PERIOD 191,520 101,215 326,734 100,915
========= ========= ========= =========
NET ASSETS AT END OF PERIOD (2) $ 194,900 $ 191,520 $ 446,555 $ 326,734
========= ========= ========= =========
(1)CAPITAL SHARE TRANSACTIONS:
Class Y:
Shares issued 4,056 5,467 3,529 3,356
Shares issued in connection with acquisition of
Common Trust Fund Assets -- 7,212 -- 24,298
Shares issued in connection with acquisition of Qualivest Fund* -- -- 18,733 --
Shares issued in lieu of cash distributions 234 437 401 360
Shares redeemed (3,727) (4,008) (11,082) (5,483)
--------- --------- --------- ---------
TOTAL CLASS Y TRANSACTIONS 563 9,108 11,581 22,531
========= ========= ========= =========
Retail class A:
Shares issued 465 186 172 132
Shares issued in connection with acquisition of Qualivest
Funds* -- -- 81 --
Shares issued in lieu of cash distributions 13 40 7 11
Shares redeemed (702) (276) (79) (118)
--------- --------- --------- ---------
TOTAL RETAIL CLASS A TRANSACTIONS (224) (50) 181 25
========= ========= ========= =========
Retail class B:
Shares issued -- -- -- --
Shares issued in connection with acquisition of Qualivest
Funds* -- -- -- --
Shares issued in lieu of cash distributions -- -- -- --
Shares redeemed -- -- -- --
========= ========= ========= =========
TOTAL RETAIL CLASS B TRANSACTIONS -- -- -- --
========= ========= ========= =========
NET INCREASE (DECREASE) FROM SHARE TRANSACTIONS 339 9,058 11,762 22,556
========= ========= ========= =========
</TABLE>
[WIDE TABLE CONTINUED FROM ABOVE]
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT
BOND FUND FIXED INCOME FUND
............................ ............................
10/1/97 10/1/96 10/1/97 10/1/96
to to to to
3/31/98 9/30/97 3/31/98 9/30/97
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income - net $ 5,826 $ 10,128 $ 27,507 $ 33,769
Net realized gain (loss) on investments 53 (156) 12,254 58
Net change in unrealized appreciation
(depreciation) of investments 866 1,507 806 12,465
----------- ----------- ----------- -----------
Net increase in net assets resulting from operations 6,745 11,479 40,567 46,292
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class Y (5,732) (9,922) (27,171) (32,617)
Retail class A (112) (209) (276) (435)
Retail class B -- -- (360) (736)
Net realized gain on investments:
Class Y -- -- (873) (2,700)
Retail class A -- -- (11) (56)
Retail class B -- -- (19) (108)
Tax return of capital
Class Y -- -- -- --
Retail class A -- -- -- --
Retail class B -- -- -- --
----------- ----------- ----------- -----------
TOTAL DISTRIBUTIONS (5,844) (10,131) (28,710) (36,652)
=========== =========== =========== ===========
CAPITAL SHARE TRANSACTIONS (1):
Class Y:
Proceeds from sales 48,797 45,057 281,903 210,796
Shares issued in connection with acquisition of
Common Trust Fund Assets -- 31,833 -- 217,322
Shares issued in connection with acquisition of Qualivest Fund* -- -- 266,616 --
Reinvestment of distributions 392 888 14,616 13,547
Payments for redemptions (14,361) (37,431) (148,426) (136,383)
----------- ----------- ----------- -----------
Increase (decrease) in net assets from
Class Y transactions 34,828 40,347 414,709 305,282
----------- ----------- ----------- -----------
Retail class A:
Proceeds from sales 1,963 1,571 3,796 4,803
Shares issued in connection with acquisition of Qualivest Fund* -- -- 526 --
Reinvestment of distributions 66 138 207 363
Payments for redemptions (1,407) (1,539) (1,752) (5,105)
----------- ----------- ----------- -----------
Increase (decrease) in net assets from
Retail class A transactions 622 170 2,777 61
----------- ----------- ----------- -----------
Retail class B:
Proceeds from sales -- -- 1,328 2,475
Shares issued in connection with acquisition of Qualivest Fund* -- -- -- --
Reinvestment of distributions -- -- 319 723
Payments for redemptions -- -- (1,056) (4,309)
----------- ----------- ----------- -----------
Increase (decrease) in net assets from
Retail class B transactions -- -- 591 (1,111)
----------- ----------- ----------- -----------
Increase (decrease) in net assets from
capital share transactions 35,450 40,517 418,077 304,232
----------- ----------- ----------- -----------
Total increase (decrease) in net assets 36,351 41,865 429,934 313,872
NET ASSETS AT BEGINNING OF PERIOD 185,415 143,550 729,507 415,635
=========== =========== =========== ===========
NET ASSETS AT END OF PERIOD (2) $ 221,766 $ 185,415 $ 1,159,441 $ 729,507
=========== =========== =========== ===========
(1)CAPITAL SHARE TRANSACTIONS:
Class Y:
Shares issued 5,223 4,888 25,279 19,428
Shares issued in connection with acquisition of
Common Trust Fund Assets -- 3,423 -- 19,965
Shares issued in connection with acquisition of Qualivest Fund* -- -- 24,078 --
Shares issued in lieu of cash distributions 42 96 1,313 1,251
Shares redeemed (1,537) (4,054) (13,281) (12,610)
----------- ----------- ----------- -----------
TOTAL CLASS Y TRANSACTIONS 3,728 4,353 37,389 28,034
=========== =========== =========== ===========
Retail class A:
Shares issued 210 170 341 443
Shares issued in connection with acquisition of Qualivest
Funds* -- -- 47 --
Shares issued in lieu of cash distributions 7 15 19 33
Shares redeemed (151) (166) (157) (472)
----------- ----------- ----------- -----------
TOTAL RETAIL CLASS A TRANSACTIONS 66 19 250 4
=========== =========== =========== ===========
Retail class B:
Shares issued -- -- 120 229
Shares issued in connection with acquisition of Qualivest
Funds* -- -- -- --
Shares issued in lieu of cash distributions -- -- 29 67
Shares redeemed -- -- (95) (400)
=========== =========== =========== ===========
TOTAL RETAIL CLASS B TRANSACTIONS -- -- 54 (104)
=========== =========== =========== ===========
NET INCREASE (DECREASE) FROM SHARE TRANSACTIONS 3,794 4,372 37,693 27,934
=========== =========== =========== ===========
</TABLE>
[WIDE TABLE CONTINUED FROM ABOVE]
<TABLE>
<CAPTION>
CALIFORNIA
INTERMEDIATE
TAX FREE
FUND
......................
10/1/97 8/8/97
to to
3/31/98 9/30/97(3)
-------- --------
<S> <C> <C>
OPERATIONS:
Investment income - net $ 730 $ 196
Net realized gain (loss) on investments 57 10
Net change in unrealized appreciation
(depreciation) of investments 106 103
-------- --------
Net increase in net assets resulting from operations 893 309
-------- --------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class Y (722) (196)
Retail class A -- --
Retail class B -- --
Net realized gain on investments:
Class Y (6) (5)
Retail class A -- --
Retail class B -- --
Tax return of capital
Class Y -- --
Retail class A -- --
Retail class B -- --
-------- --------
TOTAL DISTRIBUTIONS (728) (201)
======== ========
CAPITAL SHARE TRANSACTIONS (1):
Class Y:
Proceeds from sales 3,399 1,910
Shares issued in connection with acquisition of
Common Trust Fund Assets -- 32,213
Shares issued in connection with acquisition of Qualivest Fund* -- --
Reinvestment of distributions 16 5
Payments for redemptions (2,049) (949)
-------- --------
Increase (decrease) in net assets from
Class Y transactions 1,366 33,179
-------- --------
Retail class A:
Proceeds from sales -- 1
Shares issued in connection with acquisition of Qualivest Fund* -- --
Reinvestment of distributions -- --
Payments for redemptions -- --
-------- --------
Increase (decrease) in net assets from
Retail class A transactions -- 1
-------- --------
Retail class B:
Proceeds from sales -- --
Shares issued in connection with acquisition of Qualivest Fund* -- --
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 1,366 33,180
-------- --------
Total increase (decrease) in net assets 1,531 33,288
NET ASSETS AT BEGINNING OF PERIOD 33,288 0
======== ========
NET ASSETS AT END OF PERIOD (2) $ 34,819 $ 33,288
======== ========
(1)CAPITAL SHARE TRANSACTIONS:
Class Y:
Shares issued 337 191
Shares issued in connection with acquisition of
Common Trust Fund Assets -- 3,221
Shares issued in connection with acquisition of Qualivest Fund* -- --
Shares issued in lieu of cash distributions 2 1
Shares redeemed (204) (95)
-------- --------
TOTAL CLASS Y TRANSACTIONS 135 3,318
======== ========
Retail class A:
Shares issued -- --
Shares issued in connection with acquisition of Qualivest
Funds* -- --
Shares issued in lieu of cash distributions -- --
Shares redeemed -- --
-------- --------
TOTAL RETAIL CLASS A TRANSACTIONS -- --
======== ========
Retail class B:
Shares issued -- --
Shares issued in connection with acquisition of Qualivest
Funds* -- --
Shares issued in lieu of cash distributions -- --
Shares redeemed -- --
======== ========
TOTAL RETAIL CLASS B TRANSACTIONS -- --
======== ========
NET INCREASE (DECREASE) FROM SHARE TRANSACTIONS 135 3,318
======== ========
</TABLE>
(2) Includes undistributed (distributions in excess of) net investment income
(000) of $80 and $0 for Limited Term Income Fund, $8 and $(1) for
Intermediate Term Income Fund, $(18) and $0 for Intermediate Government
Bond Fund, $(268) and $12 for Fixed Income Fund, $8 and $0 for California
Intermediate Tax Free Fund, $0 and $0 for Colorado Intermediate Tax Free
Fund, $(19) and $0 for Minnesota Intermediate Tax Free Fund, $10 and $0 for
Oregon Tax Free Fund, $(27) and $11 for Intermediate Tax Free Income Fund,
$423 and $296 for Balanced Fund, and $(104) and $0 for Real Estate
Securities Fund, at March 31, 1998 and September 30, 1997, respectively.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
107
<TABLE>
<CAPTION>
COLORADO MINNESOTA OREGON
INTERMEDIATE INTERMEDIATE INTERMEDIATE
TAX FREE FUND TAX FREE FUND TAX FREE FUND
.................... ...................... ......................
10/1/97 10/1/96 10/1/97 10/1/96 10/1/97 8/8/97
to to to to to to
3/31/98 9/30/97 3/31/98 9/30/97 3/31/98 9/30/97(3)
-------- -------- --------- --------- --------- --------
<S> <C> <C> <C> <C> <C>
$ 1,316 $ 2,478 $ 6,641 $ 11,836 $ 4,035 $ 1,199
44 90 950 956 445 183
345 1,193 918 1,670 (35) 678
-------- -------- --------- --------- --------- --------
1,705 3,761 8,509 14,462 4,445 2,060
-------- -------- --------- --------- --------- --------
(1,222) (2,308) (6,494) (11,553) (4,025) (1,199)
(94) (174) (166) (287) -- --
-- -- -- -- -- --
(84) (256) (1,041) (310) (273) --
(7) (20) (26) (14) -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
--------- -------- --------- --------- --------- --------
(1,407) (2,758) (7,727) (12,164) (4,298) (1,199)
========= ======== ========= ========= ========= ========
5,424 11,557 29,676 41,072 8,426 2,652
-- -- -- 201,901 -- 180,293
-- -- -- -- -- --
9 6 197 241 235 87
(4,603) (7,051) (19,944) (41,655) (10,940) (1,824)
--------- -------- --------- --------- --------- --------
830 4,512 9,929 201,559 (2,279) 181,208
--------- -------- --------- --------- --------- --------
1,291 3,124 1,980 4,643 -- --
-- -- -- -- -- --
63 116 95 104 -- --
(1,680) (1,978) (1,676) (1,339) -- --
--------- -------- --------- --------- --------- --------
(326) 1,262 399 3,408 -- --
--------- -------- --------- --------- --------- --------
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
--------- -------- --------- --------- --------- --------
-- -- -- -- -- --
--------- -------- --------- --------- --------- --------
504 5,774 10,328 204,967 (2,279) 181,208
--------- -------- --------- --------- --------- --------
802 6,777 11,110 207,265 (2,132) 182,069
58,565 51,788 304,575 97,310 182,069 --
========= ======== ========= ========= ========= ========
$59,367 $ 58,565 $ 315,685 $ 304,575 $ 179,937 $182,069
========= ======== ========= ========= ========= ========
507 1,102 2,932 3,981 836 264
-- -- -- 20,251 -- 18,029
-- -- -- -- -- --
1 -- 20 24 23 9
(432) (673) (1,973) (4,155) (1,086) (182)
--------- -------- --------- --------- --------- --------
(76) 429 979 20,101 (227) 18,120
========= ======== ========= ========= ========= ========
121 298 195 467 -- --
-- -- -- -- -- --
5 11 9 10 -- --
(157) (189) (165) (133) -- --
--------- -------- --------- --------- --------- --------
(31) 120 39 344 -- --
========= ======== ========= ========= ========= ========
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
========= ======== ========= ========= ========= ========
-- -- -- -- -- --
========= ======== ========= ========= ========= ========
(45) 549 1,018 20,445 (227) 18,120
========= ======== ========= ========= ========= ========
</TABLE>
[WIDE TABLE CONTINUED FROM ABOVE]
<TABLE>
<CAPTION>
INTERMEDIATE REAL ESTATE
TAX FREE FUND BALANCED FUND SECURITIES FUND
...................... ...................... ....................
10/1/97 10/1/96 10/1/97 10/1/96 10/1/97 10/1/96
to to to to to to
3/31/98 9/30/97 3/31/98 9/30/97 3/31/98 9/30/97
--------- --------- --------- --------- -------- --------
<S> <C> <C> <C> <C> <C>
$ 9,687 $ 10,029 $ 7,845 $ 12,335 $ 1,357 $ 1,396
1,958 2,619 38,100 41,325 1,717 822
287 1,523 (4,454) 44,532 (1,632) 7,510
--------- --------- --------- --------- -------- --------
11,932 14,171 41,491 98,192 1,442 9,728
--------- --------- --------- --------- -------- --------
(9,597) (9,897) (6,745) (11,095) (1,342) (1,132)
(128) (138) (500) (721) (52) (46)
-- -- (472) (589) (67) (52)
(2,516) (412) (31,658) (14,766) (1,126) (433)
(31) (17) (2,532) (962) (52) (21)
-- -- (3,407) (854) (78) (32)
-- -- -- -- -- (9)
-- -- -- -- -- (1)
--------- --------- --------- --------- -------- --------
(12,272) (10,464) (45,314) (28,987) (2,717) (1,726)
========= ========= ========= ========= ======== ========
49,267 35,896 78,347 94,094 28,767 18,012
-- 369,839 -- -- -- --
-- -- 94,226 -- -- --
1,745 607 37,149 25,618 587 79
(29,950) (45,984) (94,065) (94,297) (3,219) (2,773)
--------- --------- --------- --------- -------- --------
21,062 360,358 115,657 25,415 26,135 15,318
--------- --------- --------- --------- -------- --------
4,228 2,642 10,878 10,369 599 1,850
-- -- 2,345 -- -- --
73 78 2,904 1,632 83 51
(908) (1,549) (3,368) (4,969) (282) (306)
--------- --------- --------- --------- -------- --------
3,393 1,171 12,759 7,032 400 1,595
--------- --------- --------- --------- -------- --------
-- -- 11,489 24,636 589 2,731
-- -- 5,078 -- -- --
-- -- 3,735 1,396 131 76
-- -- (2,548) (2,836) (184) (182)
--------- --------- --------- --------- -------- --------
-- -- 17,754 23,196 536 2,625
--------- --------- --------- --------- -------- --------
24,455 361,529 146,170 55,643 27,071 19,538
--------- --------- --------- --------- -------- --------
24,115 365,236 142,347 124,848 25,796 27,540
434,848 69,612 494,103 369,255 45,924 18,384
========= ========= ========= ========= ======== ========
$ 458,963 $ 434,848 $ 636,450 $ 494,103 $ 71,720 $ 45,924
========= ========= ========= ========= ======== ========
4,529 3,359 5,317 6,716 1,969 1,356
-- 34,393 -- -- -- --
-- -- 6,642 -- -- --
161 56 2,633 1,874 41 6
(2,759) (4,259) (6,545) (6,796) (221) (213)
--------- --------- --------- --------- -------- --------
1,931 33,549 8,047 1,794 1,789 1,149
========= ========= ========= ========= ======== ========
388 247 744 729 41 140
-- -- 166 -- -- --
7 7 206 119 6 4
(84) (145) (245) (344) (20) (23)
--------- --------- --------- --------- -------- --------
311 109 871 504 27 121
========= ========= ========= ========= ======== ========
-- -- 788 1,759 41 208
-- -- 360 -- -- --
-- -- 267 102 9 6
-- -- (174) (202) (12) (14)
========= ========= ========= ========= ======== ========
-- -- 1,241 1,659 38 200
========= ========= ========= ========= ======== ========
2,242 33,658 10,159 3,957 1,854 1,470
========= ========= ========= ========= ======== ========
</TABLE>
(3)The California Intermediate Tax Free Fund and Oregon Intermediate Tax Free
Fund commenced operations on August 8, 1997. * The Balanced Fund acquired the
FAIF Asset Allocation Fund.
<PAGE>
108
STATEMENTS OF CHANGES IN NET ASSETS (000)
(Unaudited)
<TABLE>
<CAPTION>
EQUITY EQUITY
INCOME FUND INDEX FUND
..................... .......................
10/1/97 10/1/96 10/1/97 10/1/96
to to to to
3/31/98 9/30/97 3/31/98 9/30/97
--------- --------- ---------- ---------
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income (loss) - net $ 5,573 $ 6,502 $ 5,930 $ 7,408
Net realized gain on investments 12,872 21,119 44,558 16,563
Net realized gain on futures contracts -- -- 2,922 2,759
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 36,835 27,751 96,432 129,164
Net change in unrealized depreciation of futures contracts -- -- 89 (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 55,280 55,372 149,931 155,846
--------- --------- ---------- ---------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class Y (5,428) (6,071) (5,651) (7,188)
Retail class A (122) (120) (163) (138)
Retail class B (70) (111) (78) (92)
Net realized gain on investments:
Class Y (20,162) (1,790) (39,689) (9,833)
Retail class A (524) (68) (1,395) (187)
Retail class B (372) (106) (1,890) (245)
--------- --------- ---------- ---------
TOTAL DISTRIBUTIONS (26,678) (8,266) (48,866) (17,683)
========= ========= ========== =========
CAPITAL SHARE TRANSACTIONS (1):
Class Y
Proceeds from sales 25,723 25,317 158,827 134,912
Shares issued in connection with the acquisition
of Common Trust Fund Assets -- 265,585 -- --
Shares issued in connection with acquisition
of Qualivest Fund -- -- 345,903 --
Reinvestment of distributions 2,989 358 40,322 15,628
Payments for redemptions (25,314) (30,860) (174,709) (72,939)
--------- --------- ---------- ---------
Increase in net assets from Class Y transactions 3,398 260,400 370,343 77,601
--------- --------- ---------- ---------
Retail class A:
Proceeds from sales 13,920 7,046 28,020 10,915
Shares issued in connection with acquisition of Qualivest
Fund -- -- 5,782 --
Reinvestment of distributions 440 154 1,379 299
Payments for redemptions (12,440) (3,548) (16,884) (4,435)
--------- --------- ---------- ---------
Increase (decrease) in net assets from Retail class A
transactions 1,920 3,652 18,297 6,779
--------- --------- ---------- ---------
Retail class B:
Proceeds from sales 1,306 2,145 9,595 12,706
Reinvestment of distributions 424 206 1,920 333
Payments for redemptions (511) (636) (1,429) (1,626)
--------- --------- ---------- ---------
Increase in net assets from Retail class B transactions 1,219 1,715 10,086 11,413
--------- --------- ---------- ---------
Increase in net assets from capital share transactions 6,537 265,767 398,726 95,793
--------- --------- ---------- ---------
Total increase in net assets 35,139 312,873 499,791 233,956
NET ASSETS AT BEGINNING OF PERIOD 383,814 70,941 596,968 363,012
========= ========= ========== =========
NET ASSETS AT END OF PERIOD (2) $ 418,953 $ 383,814 $1,096,759 $ 596,968
========= ========= ========== =========
(1)CAPITAL SHARE TRANSACTIONS:
Class Y
Shares issued 1,649 1,790 7,798 7,433
Shares issued in connection with the acquisition
of Common Trust Fund Assets -- 18,802 -- --
Shares issued in connection with acquisition of Qualivest
Fund -- -- 17,735 --
Shares issued in lieu of cash distributions 197 25 2,102 917
Shares redeemed (1,606) (2,157) (8,582) (4,009)
--------- --------- ---------- ---------
TOTAL CLASS Y TRANSACTIONS 240 18,460 19,053 4,341
========= ========= ========== =========
Retail class A:
Shares issued 895 497 1,390 607
Shares issued in connection with acquisition of Qualivest
Fund -- -- 296 --
Shares issued in lieu of cash distributions 29 11 72 18
Shares redeemed (804) (248) (867) (257)
--------- --------- ---------- ---------
TOTAL RETAIL CLASS A TRANSACTIONS 120 260 891 368
========= ========= ========== =========
Retail class B:
Shares issued 82 155 469 687
Shares issued in lieu of cash distributions 28 15 101 20
Shares redeemed (33) (45) (68) (93)
--------- --------- ---------- ---------
TOTAL RETAIL CLASS B TRANSACTIONS 77 125 502 614
========= ========= ========== =========
NET INCREASE IN CAPITAL SHARES 437 18,845 20,446 5,323
========= ========= ========== =========
</TABLE>
[WIDE TABLE CONTINUED FROM ABOVE]
<TABLE>
<CAPTION>
LARGE CAP LARGE CAP
VALUE FUND GROWTH FUND
.......................... ......................
10/1/97 10/1/96 10/1/97 10/1/96
to to to to
3/31/98 9/30/97 3/31/98 9/30/97
----------- ----------- --------- ---------
<S> <C> <C> <C> <C> <
OPERATIONS:
Investment income (loss) - net $ 7,651 $ 11,503 $ 3,011 $ 3,987
Net realized gain on investments 151,929 166,898 31,682 56,183
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 (24,350) 104,252 54,178 83,459
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 135,230 282,653 88,871 143,629
----------- ----------- --------- ---------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class Y (7,125) (11,699) (2,906) (4,005)
Retail class A (313) (419) (52) (57)
Retail class B (109) (253) (11) (12)
Net realized gain on investments:
Class Y (142,761) (36,144) (53,851) (4,541)
Retail class A (7,051) (1,898) (1,066) (113)
Retail class B (7,436) (2,030) (757) (123)
----------- ----------- --------- ---------
TOTAL DISTRIBUTIONS (164,795) (52,443) (58,643) (8,851)
=========== =========== ========= =========
CAPITAL SHARE TRANSACTIONS (1):
Class Y
Proceeds from sales 256,364 369,573 93,787 54,925
Shares issued in connection with the acquisition
of Common Trust Fund Assets 265,740 177,039 -- 360,927
Shares issued in connection with acquisition
of Qualivest Fund 161,636 -- -- --
Reinvestment of distributions 90,544 30,785 11,287 2,499
Payments for redemptions (321,327) (165,426) (65,221) (93,542)
----------- ----------- --------- ---------
Increase in net assets from Class Y transactions 452,957 411,971 39,853 324,809
----------- ----------- --------- ---------
Retail class A:
Proceeds from sales 23,803 35,133 10,115 17,452
Shares issued in connection with acquisition of Qualivest
Fund 9,139 -- -- --
Reinvestment of distributions 6,677 2,180 743 139
Payments for redemptions (11,038) (18,329) (4,458) (13,295)
----------- ----------- --------- ---------
Increase (decrease) in net assets from Retail class A
transactions 28,581 18,984 6,400 4,296
----------- ----------- --------- ---------
Retail class B:
Proceeds from sales 10,911 22,592 1,130 2,391
Reinvestment of distributions 7,337 2,232 751 130
Payments for redemptions (2,265) (4,414) (516) (742)
----------- ----------- --------- ---------
Increase in net assets from Retail class B transactions 15,983 20,410 1,365 1,779
----------- ----------- --------- ---------
Increase in net assets from capital share transactions 497,521 451,365 47,618 330,884
----------- ----------- --------- ---------
Total increase in net assets 467,956 681,575 77,846 465,662
NET ASSETS AT BEGINNING OF PERIOD 1,199,062 517,487 702,655 236,993
=========== =========== ========= =========
NET ASSETS AT END OF PERIOD (2) $ 1,667,018 $ 1,199,062 $ 780,501 $ 702,655
=========== =========== ========= =========
(1)CAPITAL SHARE TRANSACTIONS:
Class Y
Shares issued 10,440 15,111 5,623 3,578
Shares issued in connection with the acquisition
of Common Trust Fund Assets 10,793 7,432 -- 24,454
Shares issued in connection with acquisition of Qualivest
Fund 6,653 -- -- --
Shares issued in lieu of cash distributions 3,790 1,318 711 172
Shares redeemed (13,079) (6,620) (3,841) (6,125)
----------- ----------- --------- ---------
TOTAL CLASS Y TRANSACTIONS 18,597 17,241 2,493 22,079
=========== =========== ========= =========
Retail class A:
Shares issued 943 1,344 600 1,125
Shares issued in connection with acquisition of Qualivest
Fund 376 -- -- --
Shares issued in lieu of cash distributions 280 94 47 10
Shares redeemed (442) (702) (259) (843)
----------- ----------- --------- ---------
TOTAL RETAIL CLASS A TRANSACTIONS 1,157 736 388 292
=========== =========== ========= =========
Retail class B:
Shares issued 430 916 66 157
Shares issued in lieu of cash distributions 310 97 48 9
Shares redeemed (90) (178) (30) (49)
----------- ----------- --------- ---------
TOTAL RETAIL CLASS B TRANSACTIONS 650 835 84 117
=========== =========== ========= =========
NET INCREASE IN CAPITAL SHARES 20,404 18,812 2,965 22,488
=========== =========== ========= =========
</TABLE>
[WIDE TABLE CONTINUED FROM ABOVE]
<TABLE>
<CAPTION>
MID CAP
VALUE FUND
.......................
10/1/96 10/1/97
to to
9/30/97 3/31/98
--------- ---------
<S> <C> <C>
OPERATIONS:
Investment income (loss) - net $ 3,247 1,538
Net realized gain on investments 85,750 78,939
Net realized gain on futures contracts -- --
Net realized loss on closing and expiration of options written (25,947) (7,033)
Net realized gain on forward foreign currency contracts
and foreign currency transactions -- --
Net change in unrealized appreciation (depreciation) of
investments 83,135 (8,679)
Net change in unrealized depreciation of futures contracts -- --
Net change in unrealized depreciation of purchased options
contracts (375) (1,633)
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 145,810 63,132
--------- ---------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class Y (3,102) (1,283)
Retail class A (123) (61)
Retail class B (20) (8
Net realized gain on investments:
Class Y (39,325) (63,590)
Retail class A (2,868) (4,144)
Retail class B (2,274) (4,617)
--------- ---------
DISTRIBUTIONS IN EXCESS OF REALIZED CAPITAL GAIN
Class Y -- --
Retail class A -- --
Retail class B -- --
--------- ---------
TOTAL DISTRIBUTIONS (47,712) (73,703)
========= =========
CAPITAL SHARE TRANSACTIONS (1):
Class Y
Proceeds from sales 110,674 160,016
Shares issued in connection with the acquisition
of Common Trust Fund Assets 80,933 --
Shares issued in connection with acquisition
of Qualivest Fund -- --
Reinvestment of distributions 35,430 44,708
Payments for redemptions (53,232) (69,540)
--------- ---------
Increase in net assets from Class Y transactions 173,805 135,184
--------- ---------
Retail class A:
Proceeds from sales 50,140 33,711
Shares issued in connection with acquisition of Qualivest
Fund -- --
Reinvestment of distributions 2,873 3,983
Payments for redemptions (40,915) (26,668)
--------- ---------
Increase (decrease) in net assets from Retail class A
transactions 12,098 11,026
--------- ---------
Retail class B:
Proceeds from sales 18,981 8,975
Reinvestment of distributions 2,246 4,475
Payments for redemptions (2,726) (1,833)
--------- ---------
Increase in net assets from Retail class B transactions 18,501 11,617
--------- ---------
Increase in net assets from capital share transactions 204,404 157,827
--------- ---------
Total increase in net assets 302,502 147,256
NET ASSETS AT BEGINNING OF PERIOD 278,662 581,164
========= =========
NET ASSETS AT END OF PERIOD (2) $ 581,164 $ 728,420
========= =========
(1)CAPITAL SHARE TRANSACTIONS:
Class Y
Shares issued 5,214 7,321
Shares issued in connection with the acquisition
of Common Trust Fund Assets 4,323 --
Shares issued in connection with acquisition of Qualivest
Fund -- --
Shares issued in lieu of cash distributions 1,921 2,292
Shares redeemed (2,555) (3,225)
--------- ---------
TOTAL CLASS Y TRANSACTIONS 8,903 6,388
========= =========
Retail class A:
Shares issued 2,393 1,507
Shares issued in connection with acquisition of Qualivest
Fund -- --
Shares issued in lieu of cash distributions 156 204
Shares redeemed (1,975) (1,169)
--------- ---------
TOTAL RETAIL CLASS A TRANSACTIONS 574 542
========= =========
Retail class B:
Shares issued 910 404
Shares issued in lieu of cash distributions 123 233
Shares redeemed (136) (84)
--------- ---------
TOTAL RETAIL CLASS B TRANSACTIONS 897 553
========= =========
NET INCREASE IN CAPITAL SHARES 10,374 7,483
========= =========
</TABLE>
(2) Includes undistributed (distribution in excess of) net investment income
(000) of $264 and $311 for Equity Income Fund, $208 and $185 for Equity
Index Fund, $338 and $245 for Large Cap Value Fund, $151 and $109 for Large
Cap Growth Fund, $336 and $150 for Mid Cap Value Fund, $(101) and $0 for
Regional Equity Fund, accumulated net investment (loss) of $(41) and $(4)
for Small Cap Growth Fund, $156 and accumulated net investment loss of
$(150)* and $57+ for Small Cap Value Fund, $33 and $0 for Micro Cap Value
Fund, accumulated net investment loss $(70), $1,019* and $706+ for
International Index Fund, at March 31, 1998 and September 30, 1997,
respectively. *November 30, 1997 + July 31, 1997
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
109
<TABLE>
<CAPTION>
REGIONAL SMALL CAP SMALL CAP
EQUITY FUND GROWTH FUND VALUE FUND
..................... ...................... ...................................
10/1/97 10/1/96 10/1/97 10/1/96 12/1/97 8/1/97 8/1/96
to to to to to to to
3/31/98 9/30/97 3/31/98 9/30/97 3/31/98 11/30/97 7/31/97
- --------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
$ 26 $ 825 $ (36) $ (356) $ 782 $ (114) $ 906
17,848 19,934 8,196 11,274 6,678 2,299 40,605
-- -- -- -- -- -- --
-- -- -- -- -- -- --
-- -- -- -- -- -- --
137 92,092 1,519 22,599 31,898 8,373 94,682
-- -- -- -- -- -- --
-- -- -- -- -- -- --
-- -- -- -- -- -- --
- --------- --------- --------- --------- --------- --------- ---------
18,011 112,851 9,679 33,517 39,358 10,558 136,193
- --------- --------- --------- --------- --------- --------- ---------
(127) (1,903) (1) -- (477) (93) (1,010)
-- (99) -- -- -- -- (13)
-- -- -- -- -- -- --
(12,842) (9,965) (12,126) (3,321) (33,301) -- (33,661)
(1,389) (992) (291) (92) (1,320) -- (1,347)
(1,723) (1,103) (100) (39) (4) -- --
- --------- --------- --------- --------- --------- --------- ---------
-- -- -- -- -- -- --
-- -- -- -- -- -- --
-- -- -- -- -- -- --
- --------- --------- --------- --------- --------- --------- ---------
(16,081) (14,062) (12,518) (3,452) (35,102) (93) (36,031)
========= ========= ========= ========= ========= ========= =========
64,160 82,313 64,858 63,740 139,867 117,751 173,955
-- -- -- 46,861 -- -- --
- --------- --------- --------- --------- --------- --------- ---------
9,880 9,670 3,820 1,052 32,115 82 32,450
(81,668) (81,950) (47,900) (61,470) (117,977) (116,562) (150,179)
- --------- --------- --------- --------- --------- --------- ---------
(7,628) 10,033 20,778 50,183 54,005 1,271 56,226
- --------- --------- --------- --------- --------- --------- ---------
9,702 15,573 64,156 95,546 25,000 18,971 52,025
-- -- -- -- -- -- --
1,324 1,069 214 80 1,326 -- 1,289
(11,864) (12,175) (61,689) (93,700) (26,135) (22,884) (45,325)
- --------- --------- --------- --------- --------- --------- ---------
(838) 4,467 2,681 1,926 191 (3,913) 7,989
- --------- --------- --------- --------- --------- --------- ---------
3,893 7,413 324 374 126 1 --
1,684 1,083 100 40 4 -- --
(1,362) (5,552) (73) (139) -- -- --
- --------- --------- --------- --------- --------- --------- ---------
4,215 2,944 351 275 130 1 --
- --------- --------- --------- --------- --------- --------- ---------
(4,251) 17,444 23,810 52,384 54,326 (2,641) 64,215
- --------- --------- --------- --------- --------- --------- ---------
(2,321) 116,233 20,971 82,449 58,582 7,824 164,377
428,367 312,134 158,140 75,691 480,241 472,417 308,040
========= ========= ========= ========= ========= ========= =========
$ 426,046 $ 428,367 $ 179,111 $ 158,140 $ 538,823 $ 480,241 $ 472,417
========= ========= ========= ========= ========= ========= =========
2,945 4,368 4,074 4,420 8,260 6,328 11,349
-- -- -- 3,471 -- -- --
-- -- -- -- -- -- --
477 541 262 79 1,980 4 2,252
(3,686) (4,353) (3,019) (4,311) (6,925) (6,230) (9,756)
- --------- --------- --------- --------- --------- --------- ---------
(264) 556 1,317 3,659 3,315 102 3,845
========= ========= ========= ========= ========= ========= =========
423 737 4,031 6,638 1,465 1,021 3,332
-- -- -- -- -- -- --
64 60 15 6 82 -- 90
(524) (598) (3,848) (6,470) (1,520) (1,225) (2,899)
- --------- --------- --------- --------- --------- --------- ---------
(37) 199 198 174 27 (204) 523
========= ========= ========= ========= ========= ========= =========
180 407 21 26 7 -- --
83 62 7 3 -- -- --
(63) (305) (5) (10) -- -- --
- --------- --------- --------- --------- --------- --------- ---------
200 164 23 19 7 -- --
========= ========= ========= ========= ========= ========= =========
(101) 919 1,538 3,852 3,349 (102) 4,368
========= ========= ========= ========= ========= ========= =========
</TABLE>
<PAGE>
[WIDE TABLE CONTINUED FROM ABOVE]
<TABLE>
<CAPTION>
MICRO CAP INTERNATIONAL
VALUE FUND INDEX FUND
...................... ...................................
10/1/97 8/9/97 12/1/97 8/1/97 8/1/96
to to to to to
3/31/98 9/30/97(3) 3/31/98 11/30/97 7/31/97
- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C>
$ 218 $ (7) $ 487 $ 828 $ 1,979
19,789 11,421 1,908 3,662 (315)
-- -- -- -- --
-- -- -- (142) (97)
-- -- (6) -- --
(23,835) 10,789 16,278 (28,010) 28,681
-- -- -- -- --
-- -- -- -- --
-- -- (9) 5 (5)
- --------- --------- --------- --------- ---------
(3,828) 22,203 18,658 (23,657) 30,243
- --------- --------- --------- --------- ---------
(185) -- (1,567) (512) (1,705)
-- -- (9) (3) (14)
-- -- -- -- --
(12,784) -- -- -- (310)
(15) -- -- -- (4)
(7) -- -- -- --
-- -- (120)
-- -- (2)
-- -- --
- --------- --------- --------- --------- ---------
(12,991) -- (1,576) (515) (2,155)
========= ========= ========= ========= =========
8,572 3,788 24,821 34,854 80,334
-- 239,118 -- -- --
-- -- -- -- --
6,016 -- 1,211 333 1,523
(36,918) (18,504) (54,992) (65,749) (41,656)
- --------- --------- --------- --------- ---------
(22,330) 224,402 (28,960) (30,562) 40,201
- --------- --------- --------- --------- ---------
3,699 41 197 49 400
-- -- -- -- --
9 -- 9 3 19
(3,255) -- (60) (215) (1,047)
- --------- --------- --------- --------- ---------
453 41 146 (163) (628)
- --------- --------- --------- --------- ---------
145 49 39 1 --
7 -- -- -- --
(2) -- -- -- --
- --------- --------- --------- --------- ---------
150 49 39 1 --
- --------- --------- --------- --------- ---------
(21,727) 224,492 (28,775) (30,724) 39,573
- --------- --------- --------- --------- ---------
(38,546) 246,695 (11,693) (54,896) 67,661
246,695 0 157,247 212,143 144,482
========= ========= ========= ========= =========
$ 208,149 $ 246,695 $ 145,554 $ 157,247 $ 212,143
========= ========= ========= ========= =========
848 367 2,156 3,022 7,211
-- 23,912 -- -- --
-- -- -- -- --
656 -- 112 28 137
(3,812) (1,768) (4,867) (5,882) (3,656)
- --------- --------- --------- --------- ---------
(2,308) 22,511 (2,599) (2,832) 3,692
========= ========= ========= ========= =========
365 4 17 4 36
-- -- -- -- --
1 -- 1 -- 2
(320) -- (5) (18) (96)
- --------- --------- --------- --------- ---------
46 4 13 (14) (58)
========= ========= ========= ========= =========
15 5 3 -- --
-- -- -- -- --
-- -- -- -- --
- --------- --------- --------- --------- ---------
15 5 3 -- --
========= ========= ========= ========= =========
(2,247) 22,520 (2,583) (2,846) 3,634
========= ========= ========= ========= =========
</TABLE>
(3) The Micro Cap Value Fund commenced operations on August 8, 1997.
(4) Represents a distribution in excess of net investment income due to the tax
treatment of foreign currency related transactions.
<PAGE>
110
STATEMENTS OF CHANGES IN NET ASSETS (000)
(Unaudited)
<TABLE>
<CAPTION>
INTERNATIONAL HEALTH TECHNOLOGY
FUND SCIENCES FUND FUND
.................... .................. .....................
10/1/97 10/1/96 10/1/97 10/1/96 10/1/97 10/1/96
to to to to to to
3/31/98 9/30/97 3/31/98 9/30/97 3/31/98 9/30/97
--------- --------- -------- -------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Investment income (loss) - net $ (481) $ 75 $ 63 $ 15 $ (364) $ (583)
Net realized gain on investments 5,589 5,280 3,495 4,727 8,450 9,979
Net realized gain on forward foreign currency contracts
and foreign currency transactions (5,126) 11,283 -- -- -- --
Net change in unrealized appreciation (depreciation) of
investments 30,614 33,294 (402) 4,407 (5,717) 15,172
Net change in unrealized depreciation of purchased options
contracts, forward foreign currency contracts, foreign
currency and translation of other assets and liabilities in
foreign currency 3,425 (1,826) -- -- -- --
--------- --------- -------- -------- --------- ---------
Net increase in net assets resulting from operations 34,021 48,106 3,156 9,149 2,369 24,568
--------- --------- -------- -------- --------- ---------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class Y (9,365) (2,226)(4) (50) (34) -- --
Retail class A (106) (30)(4) (1) -- -- --
Retail class B (74) (12)(4) -- -- -- --
Net realized gain on investments:
Class Y (4,550) -- (5,049) (128) (8,701) (6,933)
Retail class A (56) -- (287) (5) (492) (379)
Retail class B (44) -- (74) (3) (562) (555)
--------- --------- -------- -------- --------- ---------
TOTAL DISTRIBUTIONS (14,195) (2,268) (5,461) (170) (9,755) (7,867)
========= ========= ======== ======== ========= =========
CAPITAL SHARE TRANSACTIONS (1):
Class Y
Proceeds from sales 122,709 56,808 4,950 2,588 33,426 51,459
Shares issued in connection with the acquisition
of Common Trust Fund Assets -- -- -- 26,179 -- 67,009
Shares issued in connection with acquisition
of Qualivest Fund -- -- -- -- -- --
Reinvestment of distributions 7,845 1,223 589 38 1,656 1,962
Payments for redemptions (29,156) (19,454) (5,630) (8,779) (39,828) (51,305)
--------- --------- -------- -------- --------- ---------
Increase in net assets from Class Y transactions 101,398 38,577 (91) 20,026 (4,746) 69,125
--------- --------- -------- -------- --------- ---------
Retail class A:
Proceeds from sales 105,202 87,168 1,639 471 59,710 82,163
Shares issued in connection with acquisition of Qualivest
Fund -- -- -- -- -- --
Reinvestment of distributions 155 23 99 6 318 354
Payments for redemptions (104,440) (82,983) (66) (414) (54,266) (82,711)
--------- --------- -------- -------- --------- ---------
Increase (decrease) in net assets from Retail class A
transactions 917 4,208 1,672 63 5,762 (194)
--------- --------- -------- -------- --------- ---------
Retail class B:
Proceeds from sales 355 899 192 247 1,255 3,349
Reinvestment of distributions 114 12 74 3 551 550
Payments for redemptions (130) (306) (18) (105) (632) (1,127)
--------- --------- -------- -------- --------- ---------
Increase in net assets from Retail class B transactions 339 605 248 145 1,174 2,772
--------- --------- -------- -------- --------- ---------
Increase in net assets from capital share transactions 102,654 43,390 1,829 20,234 2,190 71,703
--------- --------- -------- -------- --------- ---------
Total increase in net assets 122,480 89,228 (476) 29,213 (5,196) 88,404
NET ASSETS AT BEGINNING OF PERIOD 227,605 138,377 42,608 13,395 162,686 74,282
========= ========= ======== ======== ========= =========
NET ASSETS AT END OF PERIOD (2) $ 350,085 $ 227,605 $ 42,132 $ 42,608 $ 157,490 $ 162,686
========= ========= ======== ======== ========= =========
(1)CAPITAL SHARE TRANSACTIONS:
Class Y
Shares issued 10,095 4,877 456 253 1,901 3,046
Shares issued in connection with the acquisition
of Common Trust Fund Assets -- -- -- 2,753 -- 3,862
Shares issued in connection with acquisition of Qualivest
Fund -- -- -- -- -- --
Shares issued in lieu of cash distributions 680 118 61 4 107 116
Shares redeemed (2,356) (1,681) (515) (860) (2,245) (3,046)
--------- --------- -------- -------- --------- ---------
TOTAL CLASS Y TRANSACTIONS 8,419 3,314 2 2,150 (237) 3,978
========= ========= ======== ======== ========= =========
Retail class A:
Shares issued 8,537 7,347 140 45 3,365 4,834
Shares issued in connection with acquisition of Qualivest
Fund -- -- -- -- -- --
Shares issued in lieu of cash distributions 13 2 10 1 21 21
Shares redeemed (8,359) (6,933) (6) (40) (3,037) (4,829)
--------- --------- -------- -------- --------- ---------
TOTAL RETAIL CLASS A TRANSACTIONS 191 416 144 6 349 26
========= ========= ======== ======== ========= =========
Retail class B:
Shares issued 29 79 18 24 72 209
Shares issued in lieu of cash distributions 10 1 8 -- 37 33
Shares redeemed (11) (27) (2) (10) (36) (69)
--------- --------- -------- -------- --------- ---------
TOTAL RETAIL CLASS B TRANSACTIONS 28 53 24 14 73 173
========= ========= ======== ======== ========= =========
NET INCREASE IN CAPITAL SHARES 8,638 3,783 170 2,170 185 4,177
========= ========= ======== ======== ========= =========
</TABLE>
(2) Includes accumulated net investment loss of (000): $(120) and undistributed
net investment income of $9,906 for International Fund, undistributed net
investment income of $13 and $1 for Health Sciences Fund and $(368) and
$(4) for Technology Fund at March 31, 1998 and September 30, 1997
respectively.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
111
FINANCIAL HIGHLIGHTS
For the period ended March 31, 1998 (unaudited)
and for the periods ended September 30,
For a share outstanding throughout the period
<TABLE>
<CAPTION>
NET ASSET DIVIDENDS NET ASSET
VALUE NET FROM NET VALUE
BEGINNING INVESTMENT INVESTMENT END OF
OF PERIOD INCOME INCOME PERIOD
................................................
<S> <C> <C> <C> <C>
PRIME OBLIGATIONS FUND
CLASS Y
1998* $ 1.00 $ 0.027 $ (0.027) $ 1.00
1997 1.00 0.052 (0.052) 1.00
1996 1.00 0.052 (0.052) 1.00
1995 1.00 0.055 (0.055) 1.00
1994 1.00 0.035 (0.035) 1.00
1993 1.00 0.030 (0.030) 1.00
1992 1.00 0.039 (0.039) 1.00
1991 1.00 0.064 (0.064) 1.00
1990(1) 1.00 0.046 (0.046) 1.00
RETAIL CLASS A
1998* $ 1.00 $ 0.025 $ (0.025) $ 1.00
1997 1.00 0.049 (0.049) 1.00
1996 1.00 0.050 (0.050) 1.00
1995(2) 1.00 0.038 (0.038) 1.00
RETAIL CLASS B
1998* $ 1.00 $ 0.022 $ (0.022) $ 1.00
1997 1.00 0.042 (0.042) 1.00
1996 1.00 0.042 (0.042) 1.00
1995(3) 1.00 0.032 (0.032) 1.00
CLASS D
1998* $ 1.00 $ $ (0.026) $ 1.00
1997 1.00 0.050 (0.050) 1.00
1996 1.00 0.051 (0.051) 1.00
1995(4) 1.00 0.038 (0.038) 1.00
GOVERNMENT OBLIGATIONS FUND
CLASS Y
1998* $ 1.00 $ 0.026 $ (0.026) $ 1.00
1997 1.00 0.051 (0.051) 1.00
1996 1.00 0.051 (0.051) 1.00
1995 1.00 0.054 (0.054) 1.00
1994 1.00 0.034 (0.034) 1.00
1993 1.00 0.028 (0.028) 1.00
1992 1.00 0.038 (0.038) 1.00
1991 1.00 0.060 (0.060) 1.00
1990(1) 1.00 0.045 (0.045) 1.00
CLASS D
1998* $ 1.00 $ 0.025 $ (0.025) $ 1.00
1997 1.00 0.049 (0.049) 1.00
1996 1.00 0.050 (0.050) 1.00
1995(2) 1.00 0.038 (0.038) 1.00
TREASURY OBLIGATIONS FUND
CLASS Y
1998* $ 1.00 $ 0.026 $ (0.026) $ 1.00
1997 1.00 0.050 (0.050) 1.00
1996 1.00 0.050 (0.050) 1.00
1995(4) 1.00 0.038 (0.038) 1.00
RETAIL CLASS A
1998(5) $ 1.00 $ 0.014 $ (0.014) $ 1.00
CLASS D
1998* $ 1.00 $ 0.025 $ (0.025) $ 1.00
1997 1.00 0.049 (0.049) 1.00
1996 1.00 0.049 (0.049) 1.00
1995 1.00 0.051 (0.051) 1.00
1994(6) 1.00 0.031 (0.031) 1.00
TAX FREE OBLIGATIONS FUND(A)
CLASS Y
1998*(7) $ 1.00 $ 0.016 $ (0.016) $ 1.00
1997(8) 1.00 0.011 (0.011) 1.00
1997(9) 1.00 0.031 (0.031) 1.00
1996(9) 1.00 0.032 (0.032) 1.00
1995(9)(10) 1.00 0.019 (0.019) 1.00
RETAIL CLASS A
1998*(7) $ 1.00 $ 0.014 $ (0.014) $ 1.00
1997(8) 1.00 0.010 (0.010) 1.00
1997(9) 1.00 0.027 (0.027) 1.00
1996(9) 1.00 0.028 (0.028) 1.00
1995(9)(10) 1.00 0.017 (0.017) 1.00
CLASS D
1998*(7) $ 1.00 $ 0.010 $ (0.010) $ 1.00
1997(11) 1.00 0.00 (0.000) 1.00
</TABLE>
<PAGE>
[WIDE TABLE CONTINUED FROM ABOVE]
<TABLE>
<CAPTION>
RATIO OF
RATIO OF NET EXPENSES TO
RATIO OF INVESTMENT AVERAGE
NET ASSETS EXPENSES TO INCOME TO NET ASSETS
TOTAL END OF AVERAGE AVERAGE (EXCLUDING
RETURN PERIOD (000) NET ASSETS NET ASSETS WAIVERS)
....................................................................
<S> <C> <C> <C> <C> <C>
PRIME OBLIGATION
CLASS Y
1998* 2.69%+ $4,917,074 0.45% 5.30% 0.51%
1997 5.32 3,615,873 0.45 5.19 0.52
1996 5.34 3,166,213 0.45 5.20 0.54
1995 5.64 2,911,055 0.45 5.53 0.60
1994 3.56 1,307,347 0.45 3.58 0.60
1993 3.02 682,988 0.45 2.97 0.62
1992 4.02 203,765 0.45 3.90 0.59
1991 6.60 193,650 0.45 6.43 0.57
1990(1) 4.73+ 239,231 0.45 7.90 0.55
RETAIL CLASS A
1998* 2.56%+ $ 888,170 0.70% 5.04% 0.76%
1997 5.06 218,261 0.70 4.95 0.77
1996 5.08 135,146 0.70 4.94 0.79
1995(2) 3.84+ 96,083 0.70 5.43 0.82
RETAIL CLASS B
1998* 2.18%+ $ 1,912 1.45% 4.29% 1.51%
1997 4.27 2,018 1.45 4,17 1.52
1996 4.29 1,763 1.45 4.15 1.54
1995(3) 3.28+ 14 1.45 4.70 1.57
CLASS D
1998* 2.61%+ $ 456,248 0.60% 5.14% 0.66%
1997 5.16 113,064 0.60 5.02 0.67
1996 5.18 109,213 0.60 4.98 0.69
1995(4) 3.86+ 9,735 0.60 5.51 0.72
GOVERNMENT OBLIGATIONS FUND
CLASS Y
1998* 2.63%+ $1,121,584 0.45% 5.18% 0.51%
1997 5.20 946,196 0.45 5.07 0.52
1996 5.24 777,594 0.45 5.10 0.54
1995 5.55 551,286 0.45 5.44 0.60
1994 3.48 455,869 0.45 3.61 0.61
1993 2.87 237,331 0.45 2.83 0.65
1992 3.85 93,770 0.45 3.71 0.64
1991 6.22 72,824 0.45 5.90 0.68
1990(1) 4.56+ 29,704 0.45 7.60 0.98
CLASS D
1998* 2.55%+ $ 427,702 0.60% 5.04% 0.66%
1997 5.04 337,199 0.60 4.92 0.67
1996 5.08 269,382 0.60 4.96 0.69
1995(2) 3.85+ 198,859 0.60 5.45 0.70
TREASURY OBLIGATIONS FUND
CLASS Y
1998* 2.60%+ $1,465,155 0.45% 5.13% 0.51%
1997 5.14 897,797 0.45 5.03 0.53
1996 5.15 317,392 0.45 5.00 0.55
1995(4) 3.83+ 117,171 0.45 5.50 0.55
RETAIL CLASS A
1998(5) 1.21%+ $ 80,368 0.70% 4.92% 0.76%
CLASS D
1998* 2.53%+ $3,372,109 0.60% 4.99% 0.66%
1997 4.98 2,847,215 0.60 4.88 0.68
1996 5.00 1,616,130 0.60 4.86 0.70
1995 5.22 1,038,818 0.60 5.13 0.70
1994(6) 3.12+ 746,090 0.58 3.19 0.68
TAX FREE OBLIGATIONS FUND(A)
CLASS Y
1998*(7) 1.59%+ $ 157,779 0.45% 3.07% 0.58%
1997(8) 1.08+ 10,703 0.64 3.09 0.97
1997(9) 3.17 9,137 0.48 3.13 0.83
1996(9) 3.22 3,895 0.41 2.92 0.79
1995(9)(10) 1.88+ 1,264 0.59 3.38 0.94
RETAIL CLASS A
1998*(7) 1.44%+ $ 41,764 0.70% 2.82% 0.83%
1997(8) 0.96+ 28,662 0.89 2.83 1.23
1997(9) 2.76 31,668 0.88 2.73 1.23
1996(9) 2.81 30,143 0.89 2.78 1.25
1995(9)(10) 1.66+ 33,569 1.00 2.98 1.36
CLASS D
1998*(7) 0.70%+ $ 4,256 0.60% 3.03% 0.73%
1997(11) 0.04+ 1 0.60 3.20 9.07
</TABLE>
* All ratios for the period have been annualized.
+ Returns are for the period indicated and have not been annualized.
(A) The financial highlights for Tax Free Obligations Fund as set forth herein
include the historical financial highlights of the Qualivest Tax-Free Money
Market Fund Class A and Y shares. The assets of Qualivest Tax Free Money
Market Fund were acquired by Tax Free Obligations Fund on November 25,
1997. In connection with such acquisition, (i) Class A shares of the
Qualivest Tax-Free Money Market Fund wre exchanged for Class A shares of
Tax Free Obligations Fund; and (ii) Qualivest Class Y and Class Q shares
were exchanged for Class Y shares of Tax Free Obligations Fund.
(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 November 3, 1997. All ratios for the period have
been annualized.
(6) Commenced operations on October 4, 1993. All ratios for the period have
been annualized.
(7) For the period December 1, 1997 to March 31, 1998. All ratios for the
period have been annualized. The First American Board of Directors approved
a change in the funds' fiscal year end from November 30 to September 30,
effective September 30, 1998.
(8) For the period August 1, 1997 to November 30, 1997. All ratios for the
period have been annualized. The First American Board of Directors approved
a change in the funds' fiscal year end from July 31 to November 30,
effective November 30, 1997.
(9) For the period ended July 31.
(10) Commenced operations January 9, 1995. All ratios for the period have been
annualized.
(11) Commenced operations November 26, 1997. All ratios for the period have been
annualized. For the period ended November 30.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
112
FINANCIAL HIGHLIGHTS
For the period ended March 31, 1998 (unaudited)
and for the periods ended September 30,
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
CLASS Y
1998* $ 9.94 $ 0.27 $ -- $ (0.27) $ --
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
1998* $ 9.94 $ 0.27 $ -- $ (0.27) $ --
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
CLASS Y
1998* $ 9.98 $ 0.27 $ 0.08 $ (0.27) $ (0.02)
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
1998* $ 10.00 $ 0.27 $ 0.08 $ (0.27) $ (0.02)
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
CLASS Y
1998* $ 9.27 $ 0.27 $ 0.05 $ (0.27) $ --
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
1998* $ 9.28 $ 0.27 $ 0.05 $ (0.27) $ --
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
CLASS Y
1998* $ 10.96 $ 0.31 $ 0.17 $ (0.31) $ (0.01)
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
1998* $ 10.97 $ 0.29 $ 0.16 $ (0.29) $ (0.01)
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
1998* $ 10.91 $ 0.25 $ 0.17 $ (0.25) $ (0.01)
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) --
CALIFORNIA INTERMEDIATE TAX FREE FUND
CLASS Y
1998* $ 10.03 $ 0.22 $ 0.05 $ (0.22) $ --
1997(7) 10.00 0.06 0.03 (0.06) --
RETAIL CLASS A
1998 $ 10.04 $ 0.22 $ 0.05 $ (0.22) $ --
1997(7) 10.00 0.06 0.04 (0.06) --
</TABLE>
[WIDE TABLE CONTINUED FROM ABOVE]
<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
CLASS Y
1998* $ 9.94 2.70%+ $ 189,969 0.60% 5.39% 0.87% 62%
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
1998* $ 9.94 2.70%+ $ 4,931 0.60% 5.38% 1.12% 62%
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
CLASS Y
1998* $ 10.04 3.56%+ $ 442,229 0.70% 5.29% 0.86% 120%
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
1998* $ 10.06 3.55%+ $ 4,326 0.70% 5.30% 1.11% 120%
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
CLASS Y
1998* $ 9.32 3.43%+ $ 217,603 0.70% 5.67% 0.87% 13%
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
1998* $ 9.33 3.43%+ $ 4,163 0.70% 5.67% 1.12% 13%
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
CLASS Y
1998* $ 11.12 4.41%+ $1,131,938 0.70% 5.39% 0.86% 87%
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
1998* $ 11.12 4.19%+ $ 11,435 0.95% 5.13% 1.11% 87%
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
1998* $ 11.07 3.92%+ $ 16,068 1.70% 4.38% 1.86% 87%
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
CALIFORNIA INTERMEDIATE TAX FREE FUND
CLASS Y
1998* $ 10.08 2.69%+ $ 34,818 0.70% 4.31% 0.94% 12%
1997(7) 10.03 0.92+ 33,287 0.69 4.14 1.11 3
RETAIL CLASS A
1998 $ 10.09 2.69%+ $ 1 0.70% 4.33% 1.19% 12%
1997(7) 10.04 1.02+ 1 0.69 4.48 1.36 3
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
113
FINANCIAL HIGHLIGHTS
For the period ended March 31, 1998 (unaudited)
and for the periods ended September 30,
For a share outstanding throughout the period
<TABLE>
<CAPTION>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS
VALUE NET GAINS OR FROM NET DISTRIBUTIONS
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM
OF PERIOD INCOME INVESTMENTS INCOME CAPITAL GAINS
...................................................................
. .
<S> <C> <C> <C> <C> <C>
COLORADO INTERMEDIATE TAX FREE FUND
CLASS Y
1998* $ 10.61 $ 0.24 $ 0.07 $ (0.24) $ (0.02)
1997 10.42 0.48 0.24 (0.48) (0.05)
1996 10.51 0.49 (0.04) (0.49) (0.05)
1995 10.16 0.48 0.36 (0.49) --
1994(8) 10.00 0.22 0.16 (0.22) --
RETAIL CLASS A
1998* $ 10.61 $ 0.24 $ 0.08 $ (0.24) $ (0.02)
1997 10.42 0.48 0.24 (0.48) (0.05)
1996 10.51 0.49 (0.04) (0.49) (0.05)
1995 10.15 0.49 0.36 (0.49) --
1994(8) 10.00 0.21 0.16 (0.22) --
MINNESOTA INTERMEDIATE TAX FREE FUND (FORMERLY MINNESOTA INTERMEDIATE INSURED TAX FREE
FUND)
CLASS Y
1998* $ 10.06 $ 0.22 $ 0.07 $ (0.22) $ (0.04)
1997 9.91 0.44 0.18 (0.44) (0.03)
1996 9.92 0.45 0.02 (0.45) (0.03)
1995 9.59 0.45 0.33 (0.45) --
1994(9) 10.00 0.25 (0.41) (0.25) --
RETAIL CLASS A
1998* $ 10.09 $ 0.22 $ 0.07 $ (0.22) $ (0.04)
1997 9.91 0.44 0.21 (0.44) (0.03)
1996 9.92 0.45 0.02 (0.45) (0.03)
1995 9.58 0.46 0.33 (0.45) --
1994(9) 10.00 0.25 (0.42) (0.25) 0.06
OREGON INTERMEDIATE TAX FREE FUND
CLASS Y
1998 $ 10.05 $ 0.22 $ 0.03 $ (0.22) $ (0.02)
1997(7) 10.00 0.07 0.05 (0.07) --
INTERMEDIATE TAX FREE FUND
CLASS Y
1998* $ 10.82 $ 0.24 $ 0.06 $ (0.24) $ (0.06)
1997 10.65 0.47 0.23 (0.47) (0.06)
1996 10.72 0.46 0.00 (0.46) (0.07)
1995 10.28 0.49 0.43 (0.48) --
1994(1) 10.89 0.29 (0.61) (0.29) (0.06)
RETAIL CLASS A
1998* $ 10.84 $ 0.24 $ 0.05 $ (0.24) $ (0.06)
1997 10.66 0.47 0.24 (0.47) (0.06)
1996 10.72 0.46 0.01 (0.46) (0.07)
1995 10.28 0.49 0.43 (0.48) --
1994 10.92 0.44 (0.57) (0.44) (0.07)
1993 10.56 0.47 0.42 (0.47) (0.06)
1992 10.34 0.53 0.22 (0.53) --
1991(3) 10.04 0.50 0.31 (0.50) (0.01)
1990(4) 10.08 0.56 (0.04) (0.56) --
1989(4) 10.19 0.56 (0.11) (0.56) --
1988(4)(5) 10.03 0.47 0.16 (0.47) --
BALANCED FUND
CLASS Y
1998* $ 15.43 $ 0.20 $ 0.79 $ (0.20) $ (1.12)
1997 13.15 0.42 2.86 (0.42) (0.58)
1996 12.13 0.42 1.43 (0.42) (0.41)
1995 10.54 0.40 1.73 (0.39) (0.15)
1994(1) 10.86 0.25 (0.32) (0.25) --
RETAIL CLASS A
1998* $ 15.41 $ 0.19 $ 0.77 $ (0.19) $ (1.12)
1997 13.14 0.39 2.85 (0.39) (0.58)
1996 12.12 0.39 1.43 (0.39) (0.41)
1995 10.54 0.38 1.72 (0.37) (0.15)
1994 10.73 0.34 (0.02) (0.34) (0.17)
1993(2) 10.00 0.28 0.75 (0.28) (0.02)
RETAIL CLASS B
1998* $ 15.36 $ 0.13 $ 0.77 $ (0.13) $ (1.12)
1997 13.10 0.29 2.84 (0.29) (0.58)
1996 12.09 0.31 1.42 (0.31) (0.41)
1995 10.53 0.29 1.71 (0.29) (0.15)
1994(3) 10.66 0.06 (0.12) (0.07) --
</TABLE>
<PAGE>
<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>
COLORADO INTERMEDIATE TAX FREE FUND
CLASS Y
1998* $ 10.66 2.89%+ $ 55,477 0.70% 4.45% 0.89% 4%
1997 10.61 7.11 54,378 0.70 4.55 0.91 11
1996 10.42 4.39 48,927 0.70 4.69 0.93 20
1995 10.51 8.47 50,071 0.70 4.84 1.02 19
1994(8) 10.16 3.76+ 7,281 0.69 4.51 4.71 4
RETAIL CLASS A
1998* $ 10.67 2.98%+ $ 3,890 0.70% 4.45% 1.14% 4%
1997 10.61 7.11 4,187 0.70 4.55 1.16 11
1996 10.42 4.39 2,861 0.70 4.69 1.18 20
1995 10.51 8.57 2,189 0.70 4.83 1.27 19
1994(8) 10.15 3.66+ 693 0.69 4.51 4.96 4
MINNESOTA INTERMEDIATE TAX FREE FUND (FORMERLY MINNESOTA INTERMEDIATE INSURED TAX FREE FUND)
CLASS Y
1998* $ 10.09 2.83%+ $307,816 0.70% 4.28% 0.86% 17%
1997 10.06 6.42 297,122 0.70 4.47 0.90 20
1996 9.91 4.80 93,394 0.70 4.53 0.93 19
1995 9.92 8.34 61,693 0.70 4.76 1.00 38
1994(9) 9.59 (1.58)+ 20,272 0.67 4.57 1.59 22
RETAIL CLASS A
1998* $ 10.12 2.82%+ $ 7,869 0.70% 4.28% 1.11% 17%
1997 10.09 6.72 7,453 0.70 4.49 1.15 20
1996 9.91 4.80 3,916 0.70 4.52 1.18 19
1995 9.92 8.46 2,219 0.70 4.74 1.25 38
1994(9) 9.58 (1.68)+ 1,508 0.67 4.57 1.84 22
OREGON INTERMEDIATE TAX FREE FUND
CLASS Y
1998 $ 10.06 2.50%+ $179,937 0.69% 4.43% 0.70% 13%
1997(7) 10.05 1.17+ 182,069 0.70 4.55 1.09 4
INTERMEDIATE TAX FREE FUND
CLASS Y
1998* $ 10.82 2.82%+ $451,742 0.70% 4.37% 0.86% 17%
1997 10.82 6.75 431,000 0.67 4.40 0.93 66
1996 10.65 4.35 66,994 0.66 4.35 0.92 53
1995 10.72 9.15 46,025 0.67 4.73 1.05 68
1994(1) 10.28 (2.91)+ 6,168 0.45 4.48 2.20 52
RETAIL CLASS A
1998* $ 10.83 2.72%+ $ 7,221 0.70% 4.38% 1.11% 17%
1997 10.84 6.84 3,849 0.67 4.41 1.18 66
1996 10.66 4.45 2,618 0.66 4.35 1.17 53
1995 10.72 9.15 983 0.67 4.71 1.30 68
1994 10.28 (1.25) 1,128 0.59 4.13 2.78 52
1993 10.92 8.66 2,969 0.71 4.31 5.09 27
1992 10.56 7.23 725 0.99 4.83 16.09 23
1991(3) 10.34 8.15+ 637 0.99 5.35 15.48 15
1990(4) 10.04 5.31 537 1.08 5.58 13.85 4
1989(4) 10.08 4.57 491 1.09 5.57 19.55 4
1988(4)(5) 10.19 6.73+ 425 0.84 5.87 13.60 0
BALANCED FUND
CLASS Y
1998* $ 15.10 7.15%+ $530,425 0.80% 2.81% 0.88% 50%
1997 15.43 26.17 418,087 0.80 2.99 0.88 84
1996 13.15 15.89 332,786 0.80 3.31 0.89 73
1995 12.13 20.89 192,145 0.79 3.61 0.94 77
1994(1) 10.54 (0.64)+ 125,285 0.75 3.51 1.05 98
RETAIL CLASS A
1998* $ 15.06 6.89%+ $ 44,692 1.05% 2.57% 1.13% 50%
1997 15.41 25.80 32,309 1.05 2.74 1.13 84
1996 13.14 15.61 20,927 1.05 3.05 1.14 73
1995 12.12 20.57 15,288 0.99 3.41 1.19 77
1994 10.54 3.02 13,734 0.77 2.63 1.24 98
1993(2) 10.73 10.39+ 111,225 0.75 3.31 1.29 77
RETAIL CLASS B
1998* $ 15.01 6.52%+ $ 61,333 1.80% 1.81% 1.88% 50%
1997 15.36 24.93 43,707 1.80 1.99 1.88 84
1996 13.10 14.78 15,542 1.80 2.32 1.89 73
1995 12.09 19.58 3,120 1.79 2.60 1.94 77
1994(3) 10.53 (0.55)+ 270 1.75 2.80 2.05 98
</TABLE>
+ Returns are for the period indicated and have not been annualized.
* All ratios for the period have been annualized.
(A) Excluding sales charges.
(1) Class Y (formerly Institutional Class C 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
Setpember 30, 1991.
(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.
(7) Commenced operations on August 8, 1997. All ratios for the period have been
annualized.
(8) Commenced operation April 4, 1994. All ratios for the period have been
annualized.
(9) Commenced operations February 25, 1994. All ratios for the period have been
annualized.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
114
FINANCIAL HIGHLIGHTS
For the period ended March 31, 1998 (unaudited)
and for the periods ended September 30,
For a share outstanding throughout the period
<TABLE>
<CAPTION>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS DISTRIBUTIONS
VALUE NET GAINS OR FROM NET DISTRIBUTIONS FROM
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM RETURN OF
OF PERIOD INCOME INVESTMENTS INCOME CAPITAL GAINS CAPITAL
...................................................................................
. .
<S> <C> <C> <C> <C> <C> <C>
REAL ESTATE SECURITIES FUND
CLASS Y
1998* $ 14.99 $ 0.34 $ (0.07) $ (0.34) $ (0.33) $ --
1997 11.53 0.74 3.43 (0.67) (0.03) (0.01)
1996 10.37 0.57 1.29 (0.53) -- (0.17)
1995(1) 10.00 0.13 0.39 (0.11) -- (0.04)
RETAIL CLASS A
1998* $ 14.97 $ 0.32 $ (0.07) $ (0.32) $ (0.33) $ --
1997 11.52 0.72 3.42 (0.65) (0.03) (0.01)
1996 10.38 0.52 1.30 (0.51) -- (0.17)
1995(2) 10.37 -- 0.01 -- -- --
RETAIL CLASS B
1998* $ 14.86 $ 0.27 $ (0.08) $ (0.27) $ (0.33) $ --
1997 11.46 0.63 3.38 (0.57) (0.03) (0.01)
1996 10.37 0.44 1.27 (0.45) -- (0.17)
1995(2) 10.37 -- -- -- -- --
EQUITY INCOME FUND
CLASS Y
1998* $ 15.70 $ 0.23 $ 1.99 $ (0.23) $ (0.85) --
1997 12.66 0.43 3.40 (0.44) (0.35) --
1996 11.24 0.42 1.43 (0.42) (0.01) --
1995 9.89 0.41 1.35 (0.41) -- --
1994(3) 9.90 0.07 (0.03) (0.05) -- --
RETAIL CLASS A
1998* $ 15.69 $ 0.21 $ 1.96 $ (0.21) $ (0.85) --
1997 12.65 0.40 3.40 (0.41) (0.35) --
1996 11.24 0.39 1.42 (0.39) (0.01) --
1995 9.89 0.41 1.33 (0.39) -- --
1994(4) 9.87 0.41 -- (0.39) -- --
1993(5)(6) 10.00 0.57 (0.14) (0.56) -- --
RETAIL CLASS B
1998* $ 15.62 $ 0.15 $ 1.98 $ (0.15) $ (0.85) --
1997 12.61 0.29 3.37 (0.30) (0.35) --
1996 11.20 0.31 1.42 (0.31) (0.01) --
1995 9.88 0.33 1.32 (0.33) -- --
1994(7) 9.87 0.04 0.02 (0.05) -- --
EQUITY INDEX FUND
CLASS Y
1998* $ 20.74 $ 0.15 $ 3.08 $ (0.15) $ (1.54) --
1997 15.47 0.29 5.70 (0.29) (0.43) --
1996 13.34 0.31 2.31 (0.31) (0.18) --
1995 10.67 0.28 2.75 (0.27) (0.09) --
1994(8) 10.85 0.20 (0.18) (0.20) -- --
RETAIL CLASS A
1998* $ 20.76 $ 0.12 $ 3.08 $ (0.12) $ (1.54) --
1997 15.49 0.12 5.70 (0.12) (0.43) --
1996 13.35 0.27 2.32 (0.27) (0.18) --
1995 10.68 0.25 2.76 (0.25) (0.09) --
1994 10.60 0.25 0.09 (0.25) (0.01) --
1993(9) 10.00 0.20 0.60 (0.20) -- --
RETAIL CLASS B
1998* $ 20.67 $ 0.05 $ 3.05 $ (0.05) $ (1.54) --
1997 15.43 0.12 5.67 (0.12) (0.43) --
1996 13.30 0.17 2.31 (0.17) (0.18) --
1995 10.66 0.23 2.68 (0.18) (0.09) --
1994(7) 10.68 0.01 0.04 (0.07) -- --
LARGE CAP VALUE FUND (FORMERLY STOCK FUND)
CLASS Y
1998* $ 28.75 $ 0.14 $ 1.86 $ (0.14) $ (3.76) --
1997 22.60 0.39 7.90 (0.38) (1.76) --
1996 19.56 0.42 4.09 (0.42) (1.05) --
1995 16.50 0.36 3.64 (0.35) (0.59) --
1994(8) 16.47 0.25 0.03 (0.25) -- --
RETAIL CLASS A
1998* $ 28.74 $ 0.11 $ 1.83 $ (0.11) $ (3.76) --
1997 22.59 0.33 7.90 (0.32) (1.76) --
1996 19.57 0.36 4.07 (0.36) (1.05) --
1995 16.51 0.33 3.64 (0.32) (0.59) --
1994 16.00 0.31 1.00 (0.30) (0.50) --
1993 14.04 0.22 1.99 (0.23) (0.02) --
1992 13.62 0.24 0.81 (0.29) (0.34) --
1991(10) 10.64 0.28 2.95 (0.22) (0.03) --
1990(11) 12.09 0.25 (1.17) (0.25) (0.28) --
1989(11) 10.35 0.25 1.70 (0.20) (0.01) --
1988(11)(12) 10.03 0.27 0.35 (0.30) -- --
RETAIL CLASS B
1998 $ 28.55 $ 0.04 $ 1.81 $ (0.04) $ (3.76) --
1997 22.50 0.18 7.81 (0.18) (1.76) --
1996 19.49 0.22 4.06 (0.22) (1.05) --
1995 16.49 0.26 3.55 (0.22) (0.59) --
1994(7) 16.65 0.03 (0.10) (0.09) -- --
</TABLE>
[WIDE TABLE CONTINUED FROM ABOVE]
<TABLE>
<CAPTION>
RATIO OF
RATIO OF NET EXPENSES TO
NET ASSET RATIO OF INVESTMENT AVERAGE AVERAGE
VALUE NET ASSETS EXPENSES TO INCOME TO NET ASSETS PORTFOLIO COMMISSION
END OF TOTAL END OF AVERAGE AVERAGE (EXCLUDING TURNOVER RATE
PERIOD RETURN (A) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) RATE (B)
........................................................................................................
. .
<S> <C> <C> <C> <C> <C> <C> <C> <C>
REAL ESTATE SECURITIES FUND
CLASS Y
1998* $ 14.59 1.92%+ $ 65,511 0.80% 4.71% 0.92% 21% $ 0.0600
1997 14.99 37.07 40,501 0.80 4.57 1.05 14 0.0700
1996 11.53 18.53 17,895 0.80 5.13 1.51 8 0.0704
1995(1) 10.37 5.19+ 5,756 0.80 6.01 2.34 0 --
RETAIL CLASS A
1998* $ 14.57 1.79%+ $ 2,443 1.05% 4.38% 1.17% 21% $ 0.0600
1997 14.97 36.77 2,105 1.05 4.46 1.30 14 0.0700
1996 11.52 18.17 226 1.05 4.36 1.76 8 0.0704
1995(2) 10.38 0.00 1 1.05 0.00 2.59 0 --
RETAIL CLASS B
1998* $ 14.45 1.36%+ $ 3,766 1.80% 3.64% 1.92% 21% $ 0.0600
1997 14.86 35.77 3,318 1.80 3.61 2.00 14 0.0700
1996 11.46 17.00 263 1.80 4.29 2.51 8 0.0704
1995(2) 10.37 0.00 1 1.80 0.00 3.34 0 --
EQUITY INCOME FUND
CLASS Y
1998* $ 16.84 14.92%+ $ 400,750 0.75% 2.87% 0.86% 11% $ 0.0600
1997 15.70 31.45 369,919 0.75 3.12 0.92 39 0.0571
1996 12.66 16.79 64,590 0.75 3.50 0.95 23 0.0700
1995 11.24 18.24 52,126 0.75 4.11 1.06 23 --
1994(3) 9.89 0.45+ 17,489 0.75 5.61 1.14 108 --
RETAIL CLASS A
1998* $ 16.80 14.57%+ $ 9,810 1.00% 2.63% 1.11% 11% $ 0.0600
1997 15.69 31.16 7,276 1.00 2.96 1.17 39 0.0571
1996 12.65 16.41 2,581 1.00 3.25 1.20 23 0.0700
1995 11.24 18.06 1,995 0.92 3.91 1.31 23 --
1994(4) 9.89 4.22+ 1,852 0.88 4.88 1.39 108 --
1993(5)(6) 9.87 4.44+ 28,786 0.75 6.09 1.36 68 --
RETAIL CLASS B
1998* $ 16.75 14.37%+ $ 8,393 1.75% 1.86% 1.86% 11% $ 0.0600
1997 15.62 30.06 6,619 1.75 2.19 1.92 39 0.0571
1996 12.61 15.66 3,770 1.75 2.49 1.95 23 0.0700
1995 11.20 17.10 1,233 1.75 3.05 2.06 23 --
1994(7) 9.88 0.57+ 1 1.75 4.39 2.14 108 --
EQUITY INDEX FUND
CLASS Y
1998* $ 22.28 16.95%+ $1,023,136 0.35% 1.42% 0.87% 15% $ 0.0300
1997 20.74 39.85 557,258 0.35 1.62 0.88 8 0.0419
1996 15.47 19.98 348,539 0.35 2.14 0.90 10 0.0377
1995 13.34 29.17 218,932 0.35 2.41 0.95 9 --
1994(8) 10.67 0.18+ 163,688 0.35 2.59 1.03 11 --
RETAIL CLASS A
1998* $ 22.30 16.79%+ $ 37,032 0.60% 1.18% 1.12% 15% $ 0.0300
1997 20.76 39.47 15,977 0.60 1.36 1.13 8 0.0419
1996 15.49 19.75 6,221 0.60 1.87 1.15 10 0.0377
1995 13.35 28.90 2,140 0.57 2.16 1.20 9 --
1994 10.68 3.25 758 0.35 2.23 1.23 11 --
1993(9) 10.60 8.02+ 139,957 0.35 2.52 1.30 1 --
RETAIL CLASS B
1998* $ 22.18 16.33%+ $ 36,591 1.35% 0.43% 1.87% 15% $ 0.0300
1997 20.67 38.45 23,733 1.35 0.61 1.88 8 0.0419
1996 15.43 18.95 8,252 1.35 1.11 1.90 10 0.0377
1995 13.30 27.87 1,197 1.35 1.34 1.95 9 --
1994(7) 10.66 0.48+ 29 1.35 1.68 2.03 11 --
LARGE CAP VALUE FUND (FORMERLY STOCK FUND)
CLASS Y
1998* $ 26.85 8.74%+ $1,521,939 0.80% 1.13% 0.88% 40% $ 0.0592
1997 28.75 39.13 1,095,262 0.80 1.39 0.89 57 0.0640
1996 22.60 24.32 471,206 0.80 1.90 0.88 40 0.0653
1995 19.56 25.50 312,559 0.79 2.10 0.94 52 --
1994(8) 16.50 1.70+ 154,949 0.75 2.28 1.01 65 --
RETAIL CLASS A
1998* $ 26.81 8.49%+ $ 78,011 1.05% 0.88% 1.13% 40% $ 0.0592
1997 28.74 38.82 50,381 1.05 1.14 1.14 57 0.0640
1996 22.59 23.90 22,965 1.05 1.64 1.13 40 0.0653
1995 19.57 25.26 13,076 1.00 1.89 1.19 52 --
1994 16.51 8.35 8,421 0.76 1.51 1.20 65 --
1993 16.00 15.82 134,186 0.75 1.94 1.28 48 --
1992 14.04 7.88 3,644 1.45 1.75 4.46 39 --
1991(10) 13.62 30.49+ 2,386 1.45 2.47 7.42 76 --
1990(11) 10.64 (8.22) 1,161 1.45 2.24 9.47 41 --
1989(11) 12.09 20.33 323 1.24 2.26 36.39 74 --
1988(11)(12) 10.35 6.40+ 206 1.02 2.67 28.60 80 --
RETAIL CLASS B
1998 $ 26.60 8.19%+ $ 67,068 1.80% 0.16% 1.88% 40% $ 0.0592
1997 28.55 37.71 53,420 1.80 0.39 1.89 57 0.0640
1996 22.50 23.08 23,316 1.80 0.89 1.88 40 0.0653
1995 19.49 24.20 7,051 1.79 1.10 1.94 52 --
1994(7) 16.49 (0.43)+ 346 1.75 1.58 2.01 65 --
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
115
FINANCIAL HIGHLIGHTS
For the period ended March 31, 1998 (unaudited)
and for the periods ended September 30,
For a share outstanding throughout the period
<TABLE>
<CAPTION>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS NET ASSET
VALUE NET GAINS OR FROM NET DISTRIBUTIONS VALUE
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM END OF
OF PERIOD INCOME (LOSS) INVESTMENTS INCOME CAPITAL GAINS PERIOD
..................................................................................
<S> <C> <C> <C> <C> <C> <C>
LARGE CAP GROWTH FUND (FORMERLY DIVERSIFIED GROWTH FUND)
CLASS Y
1998* $ 17.64 $ 0.07 $ 1.96 $ (0.07) $ (1.36) $ 18.24
1997 13.66 0.12 4.26 (0.13) (0.27) 17.64
1996 11.78 0.18 1.88 (0.18) -- 13.66
1995 9.10 0.17 2.67 (0.16) -- 11.78
1994(8) 8.92 0.03 0.18 (0.03) -- 9.10
RETAIL CLASS A
1998* $ 17.63 $ 0.05 $ 1.93 $ (0.05) $ (1.36) $ 18.20
1997 13.63 0.09 4.28 (0.10) (0.27) 17.63
1996 11.75 0.15 1.88 (0.15) -- 13.63
1995 9.09 0.15 2.66 (0.15) -- 11.75
1994(4) 9.39 0.10 (0.29) (0.11) -- 9.09
1993(5)(6) 10.00 0.11 (0.63) (0.09) -- 9.39
RETAIL CLASS B
1998* $ 17.47 $ 0.02 $ 1.90 $ (0.02) $ (1.36) $ 18.01
1997 13.57 0.01 4.18 (0.02) (0.27) 17.47
1996 11.73 0.08 1.84 (0.08) -- 13.57
1995 9.09 0.09 2.65 (0.10) -- 11.73
1994(7) 8.87 0.01 0.23 (0.02) -- 9.09
MID CAP VALUE FUND (FORMERLY SPECIAL EQUITY FUND)
CLASS Y
1998* $ 24.21 $ 0.04 $ 1.68 $ (0.04) $ (2.74) $ 23.15
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(8) 16.34 0.22 0.96 (0.22) -- 17.30
RETAIL CLASS A
1998* $ 24.19 $ 0.02 $ 1.67 $ (0.02) $ (2.74) $ 23.12
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(10) 10.33 0.30 2.61 (0.26) -- 12.98
1990(11) 12.96 0.47 (2.03) (0.46) (0.61) 10.33
1989(11) 11.55 0.47 1.39 (0.41) (0.04) 12.96
1988(11)(12) 10.03 0.34 1.57 (0.39) -- 11.55
RETAIL CLASS B
1998* $ 23.96 $ -- $ 1.58 $ -- $ (2.74) $ 22.80
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(7) 16.51 0.01 0.85 (0.08) -- 17.29
</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> <C>
LARGE CAP GROWTH FUND (FORMERLY DIVERSIFIED GROWTH FUND)
CLASS Y
1998* 12.47%+ $749,737 0.80% 0.86% 0.86% 10% $ 0.0596
1997 32.75 681,151 0.80 0.77 0.89 34 0.0633
1996 17.58 225,900 0.79 1.39 0.92 21 0.0593
1995 31.57 132,854 0.75 1.69 1.01 28 --
1994(8) 2.36+ 31,875 0.75 2.37 1.08 101 --
RETAIL CLASS A
1998* 12.76%+ $ 19,474 1.05% 0.63% 1.11% 10% $ 0.0596
1997 32.69 12,017 1.05 0.57 1.14 34 0.0633
1996 17.38 5,318 1.04 1.13 1.17 21 0.0593
1995 31.21 2,710 0.92 1.52 1.26 28 --
1994(4) (2.07)+ 1,900 0.90 1.15 1.33 101 --
1993(5)(6) (5.18)+ 31,084 0.78 1.26 1.25 5 --
RETAIL CLASS B
1998* 12.18%+ $ 11,290 1.80% (0.13)% 1.86% 10% $ 0.0596
1997 31.42 9,487 1.80 (0.18) 1.89 34 0.0633
1996 16.41 5,775 1.79 0.36 1.92 21 0.0593
1995 30.29 819 1.75 0.58 2.01 28 --
1994(7) 2.75+ 12 1.75 1.20 2.08 101 --
MID CAP VALUE FUND (FORMERLY SPECIAL EQUITY FUND)
CLASS Y
1998* 9.33%+ $634,775 0.89% 0.57% 0.89% 69% $ 0.0598
1997 40.25 509,308 0.89 0.82 0.90 82 0.0691
1996 25.61 247,828 0.88 1.35 0.88 143 0.0673
1995 12.84 201,786 0.88 2.30 0.95 72 --
1994(8) 7.31+ 128,806 0.79 1.93 1.03 116 --
RETAIL CLASS A
1998* 9.21%+ $ 46,164 1.14% 0.32% 1.14% 69% $ 0.0598
1997 39.93 35,207 1.14 0.58 1.15 82 0.0691
1996 25.23 17,987 1.13 1.06 1.13 143 0.0673
1995 12.63 11,609 1.09 2.08 1.20 72 --
1994 18.70 7,333 0.81 1.88 1.23 116 --
1993 18.91 81,899 0.81 2.07 1.31 104 --
1992 15.17 3,586 1.50 1.61 4.18 146 --
1991(10) 28.38+ 3,423 1.50 2.60 5.13 116 --
1990(11) (13.24) 2,761 1.50 4.09 4.21 113 --
1989(11) 17.41 2,000 1.38 4.07 8.68 102 --
1988(11)(12) 19.56+ 578 1.20 4.02 15.60 51 --
RETAIL CLASS B
1998* 8.75%+ $ 47,481 1.89% (0.42)% 1.89% 69% $ 0.0598
1997 38.81 36,649 1.90 (0.18) 1.90 82 0.0691
1996 24.35 12,847 1.88 0.25 1.88 143 0.0673
1995 11.64 4,847 1.88 1.22 1.95 72 --
1994(7) 5.22+ 370 1.68 0.47 2.03 116 --
</TABLE>
+ Returns are for the period indicated and have not been annualized.
* All ratios for the period have been annualized.
(A) Excluding sales charges.
(B) 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) Commenced operations on June 30, 1995. All ratios for the period have been
annualized.
(2) Commenced operations on September 29, 1995. All ratios for the period have
been annualized.
(3) Class Y shares (formerly Institutional Class C shares) have been offered
since August 2, 1994. All ratios for the period have been annualized.
(4) 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. National Bank Association,
formerly First Bank N.A. All ratios for the period have been annualized.
(5) For the period ended November 30.
(6) Commenced operations on December 18, 1992. All ratios for the period have
been annualized.
(7) Retail Class B shares have been offered since August 15, 1994. All ratios
for the period have been annualized.
(8) Class Y shares (formerly Institutional Class C shares) have been offered
since February 4, 1994. All ratios for the period have been annualized.
(9) Commenced operations on December 14, 1992. All ratios for the period have
been annualized.
(10) 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, 1991. All
ratios for the period have been annualized.
(11) For the period ended October 31.
(12) 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>
116
FINANCIAL HIGHLIGHTS
For the period ended March 31, 1998 (unaudited)
and for the periods ended September 30,
For a share outstanding throughout the period
<TABLE>
<CAPTION>
REALIZED AND
NET ASSET NET UNREALIZED DIVIDENDS DISTRIBUTIONS
VALUE INVESTMENT GAINS OR FROM NET DISTRIBUTIONS IN EXCESS
BEGINNING INCOME (LOSSES) ON INVESTMENT FROM OF REALIZED
OF PERIOD (LOSS) INVESTMENT INCOME CAPITAL GAINS GAINS
...................................................................................
<S> <C> <C> <C> <C> <C> <C>
REGIONAL EQUITY FUND
CLASS Y
1998* $ 23.16 $ 0.01 $ 0.98 $ (0.01) $ (0.95) $ --
1997 17.75 0.05 6.18 (0.13) (0.69) --
1996 17.13 0.09 1.70 (0.06) (1.11) --
1995 12.52 0.11 4.90 (0.08) (0.32) --
1994(1) 12.41 0.07 0.11 (0.07) -- --
RETAIL CLASS A
1998* $ 23.12 $ -- $ 0.95 $ -- $ (0.95) $ --
1997 17.71 0.03 6.14 (0.07) (0.69) --
1996 17.12 0.04 1.70 (0.04) (1.11) --
1995 12.52 0.08 4.90 (0.06) (0.32) --
1994 11.96 0.08 0.71 (0.07) (0.16) --
1993(2) 10.00 0.05 1.96 (0.05) -- --
RETAIL CLASS B
1998* $ 22.72 $ -- $ 0.84 $ -- $ (0.95) $ --
1997 17.47 (0.03) 5.97 -- (0.69) --
1996 16.99 (0.04) 1.64 (0.01) (1.11) --
1995 12.50 0.04 4.80 (0.03) (0.32) --
1994(3) 12.19 -- 0.33 (0.02) -- --
SMALL CAP GROWTH FUND (FORMERLY EMERGING GROWTH FUND)
CLASS Y
1998* $ 17.64 $ -- $ 0.68 $ -- $ (1.27) $ --
1997 14.79 (0.04) 3.55 -- (0.66) --
1996 13.41 (0.03) 1.77 (0.01) (0.35) --
1995 10.56 0.03 2.99 (0.02) (0.15) --
1994(4) 10.00 0.01 0.56 (0.01) -- --
RETAIL CLASS A
1998* $ 17.55 $ -- $ 0.67 $ -- $ (1.27) $ --
1997 14.77 (0.07) 3.51 -- (0.66) --
1996 13.40 (0.06) 1.78 -- (0.35) --
1995 10.57 0.01 2.99 (0.02) (0.15) --
1994(4) 10.00 0.01 0.57 (0.01) -- --
RETAIL CLASS B
1998* $ 17.15 $ -- $ 0.57 $ -- $ (1.27) $ --
1997 14.53 (0.16) 3.44 -- (0.66) --
1996 13.29 (0.12) 1.71 -- (0.35) --
1995 10.55 (0.03) 2.92 -- (0.15) --
1994(3) 9.89 (0.01) 0.67 -- -- --
SMALL CAP VALUE FUND(D)
CLASS Y
1998*(5) $ 18.23 $ 0.02 $ 1.19 $ (0.02) $ (1.27) $ --
1997(6) 17.87 (0.01) 0.37 -- -- --
1997(7) 13.96 0.04 5.43 (0.04) (1.52) --
1996(7) 13.26 0.06 1.81 (0.06) (1.11) --
1995(7)(8) 10.00 0.13 3.30 (0.12) (0.05) --
RETAIL CLASS A
1998*(5) $ 18.20 $ -- $ 1.21 $ -- $ (1.27) $ --
1997(6) 17.86 (0.03) 0.37 -- -- --
1997(7) 13.95 0.01 5.43 (0.01) (1.52) --
1996(7) 13.23 0.04 1.83 (0.04) (1.11) --
1995(7)(8) 10.00 0.09 3.29 (0.10) (0.05) --
RETAIL CLASS B
1998*(5) $ 18.23 $ 0.01 $ 1.14 $ (0.01) $ (1.27) $ --
1997(9) 18.36 (0.00) (0.13) -- -- --
MICRO CAP VALUE FUND
CLASS Y
1998* $ 10.95 $ 0.01 $ (0.10) $ -- $ (0.59) $ --
1997(10) 10.00 -- 0.95 -- -- --
RETAIL CLASS A
1998* $ 10.96 $ -- $ (0.09) $ -- $ (0.59) $ --
1997(10) 10.00 -- 0.96 -- -- --
RETAIL CLASS B
1998* $ 10.95 $ -- $ (0.14) $ -- $ (0.59) $ --
1997(10) 10.00 -- 0.95 -- -- --
INTERNATIONAL INDEX FUND(D)
CLASS Y
1998*(5) $ 10.99 $ 0.04 $ 1.49 $ (0.11) $ -- $ --
1997(6) 12.37 0.06 (1.41) (0.03) -- --
1997(7) 10.69 0.13 1.70 (0.12) (0.02) (0.01)
1996(7) 10.48 0.09 0.18 (0.06) -- --
1995(7)(11) 10.00 0.01 0.47 -- -- --
RETAIL CLASS A
1998* $ 10.94 $ 0.03 $ 1.50 $ (0.08) $ -- $ --
1997(7) 12.32 0.05 (1.41) (0.02) -- --
1997(7) 10.64 0.10 1.70 (0.09) (0.02) (0.01)
1996(7) 10.45 0.07 0.17 (0.05) -- --
1995(7)(11) 10.00 -- 0.45 -- -- --
RETAIL CLASS B
1998(5) $ 10.99 $ 0.02 $ 1.49 $ (0.10) $ -- $ --
1997(9) 11.08 0.00 (0.09) -- -- --
</TABLE>
[WIDE TABLE CONTINUED FROM ABOVE]
<TABLE>
<CAPTION>
RATIO OF
RATIO OF NET EXPENSES TO
NET ASSET RATIO OF INVESTMENT AVERAGE AVERAGE
VALUE NET ASSETS EXPENSES TO INCOME TO NET ASSETS PORTFOLIO COMMISSION
END OF TOTAL END OF AVERAGE AVERAGE (EXCLUDING TURNOVER RATE
PERIOD RETURN (A) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) RATE (B)
..........................................................................................................
<S> <C> <C> <C> <C> <C> <C> <C> <C>
REGIONAL EQUITY FUND
CLASS Y
1998* $ 23.19 4.77%+ $345,212 0.90% 0.13% 0.91% 6% $ 0.0543
1997 23.16 36.49 351,007 0.90 0.35 0.90 17 0.0699
1996 17.75 11.27 259,138 0.88 0.49 0.90 36 0.0697
1995 17.13 41.40 188,583 0.84 0.78 0.95 42 --
1994(1) 12.52 1.46+ 96,045 0.80 0.82 1.05 41 --
RETAIL CLASS A
1998* $ 23.12 4.59%+ $ 36,810 1.15% (0.12)% 1.16% 6% $ 0.0543
1997 23.12 36.13 37,677 1.15 0.11 1.15 17 0.0699
1996 17.71 10.97 25,325 1.13 0.24 1.15 36 0.0697
1995 17.12 41.17 14,917 1.05 0.58 1.20 42 --
1994 12.52 6.76 8,345 0.82 0.59 1.25 41 --
1993(2) 11.96 20.17+ 58,427 0.80 0.59 1.30 28 --
RETAIL CLASS B
1998* $ 22.61 4.18%+ $ 44,024 1.90% ( .86)% 1.91% 6% $ 0.0543
1997 22.72 35.18 39,683 1.90 (0.65) 1.90 17 0.0699
1996 17.47 10.14 27,671 1.88 (0.52) 1.90 36 0.0697
1995 16.99 39.98 7,630 1.84 (0.25) 1.95 42 --
1994(3) 12.50 2.73+ 185 1.80 (0.41) 2.05 41 --
SMALL CAP GROWTH FUND (FORMERLY EMERGING GROWTH FUND)
CLASS Y
1998* $ 17.05 5.09%+ $169,075 0.88% (0.03)% 0.88% 16% $ 0.0600
1997 17.64 25.19+ 151,607 0.90 (0.28) 0.91 54 0.0681
1996 14.79 13.39 73,025 0.89 (0.24) 0.96 39 0.0700
1995 13.41 29.16 41,716 0.84 0.20 1.19 51 --
1994(4) 10.56 5.68+ 6,849 0.80 0.23 2.59 19 --
RETAIL CLASS A
1998* $ 16.95 5.05%+ $ 8,440 1.13% (0.25)% 1.13% 16% $ 0.0600
1997 17.55 24.73+ 5,270 1.15 (0.51) 1.16 54 0.0681
1996 14.77 13.21 1,867 1.14 (0.52) 1.21 39 0.0700
1995 13.40 28.82 386 1.04 0.00 1.44 51 --
1994(4) 10.57 5.88+ 91 0.79 0.23 2.84 19 --
RETAIL CLASS B
1998* $ 16.45 4.57%+ $ 1,596 1.88% (1.03)% 1.88% 16% $ 0.0600
1997 17.15 24.01+ 1,263 1.90 (1.28) 1.91 54 0.0681
1996 14.53 12.32 799 1.89 (1.26) 1.96 39 0.0700
1995 13.29 27.89 268 1.84 (0.83) 2.19 51 --
1994(3) 10.55 6.67+ 18 1.80 (0.85) 3.59 19 --
SMALL CAP VALUE FUND(D)
CLASS Y
1998*(5) $ 18.15 (0.22)%+ $519,075 0.87% 0.48% 0.87% 7% $ 0.0600
1997(6) 18.23 2.01 + 461,046 1.06 (0.06) 1.06 3 0.0638
1997(7) 17.87 41.96 449,988 1.06 0.25 1.06 29 0.0519
1996(7) 13.96 14.94 297,793 1.08 0.41 1.08 34 0.0398
1995(7)(8) 13.26 34.76 + 209,626 0.60 1.20 1.17 37 N/A
RETAIL CLASS A
1998*(5) $ 18.14 (0.27)%+ $ 19,613 1.12% 0.24% 1.12% 7% $ 0.0600
1997(6) 18.20 1.90 + 19,194 1.37 (0.38) 1.37 3 0.0638
1997(7) 17.86 41.71 22,429 1.31 0.01 1.31 29 0.0519
1996(7) 13.95 14.93 10,247 1.33 0.14 1.33 34 0.0398
1995(7)(8) 13.23 34.29 + 1,569 1.11 0.63 1.38 37 N/A
RETAIL CLASS B
1998*(5) $ 18.10 8.97% $ 135 1.98% (0.44)% 1.98% 7% $ 0.0600
1997(9) 18.23 (0.70)+ 1 1.90 (1.53) 1.90 3 0.0638
MICRO CAP VALUE FUND
CLASS Y
1998* $ 10.27 (0.08)%+ $207,436 0.87% 0.20% 0.87% 3% $ 0.0600
1997(10) 10.95 9.50 246,601 0.90 (0.02) 1.07 0 0.0676
RETAIL CLASS A
1998* $ 10.28 (0.14)%+ $ 511 1.12% (0.07)% 1.12% 3% $ 0.0600
1997(10) 10.96 9.60 44 1.15 (0.25) 1.32 0 0.0676
RETAIL CLASS B
1998* $ 10.22 (0.64)%+ $ 202 1.87% (0.81)% 1.87% 3% $ 0.0600
1997(10) 10.95 9.50 50 1.90 (1.04) 2.07 0 0.0676
INTERNATIONAL INDEX FUND(D)
CLASS Y
1998*(5) $ 12.41 13.96%+ $143,911 0.75% 1.02% 0.96% 7% $ .0249
1997(6) 10.99 (10.93)+ 155,976 0.66 1.23 0.95 0 0.0207
1997(7) 12.37 17.24 210,538 0.73 1.15 1.03 3 0.0241
1996(7) 10.69 2.56 142,478 0.81 1.18 1.10 6 0.0221
1995(7)(11) 10.48 4.80 + 60,073 1.18 1.32 1.39 0 N/A
RETAIL CLASS A
1998* $ 12.39 13.95%+ $ 1,599 1.00% 0.84% 1.21% 7% $ .0249
1997(7) 10.94 (11.03)+ 1,270 0.92 0.98 1.21 0 0.0207
1997(7) 12.32 17.03 1,605 0.98 0.90 1.28 3 0.0241
1996(7) 10.64 2.29 2,005 1.06 0.84 1.35 6 0.0221
1995(7)(11) 10.45 4.50 + 20 1.40 0.23 1.54 0 N/A
RETAIL CLASS B
1998(5) 12.40 13.73%+ $ 44 1.75% 0.75% 1.96% 7% $ .0249
1997(9) 10.99 (0.36)+ 1 1.29 0.00 1.29 0 0.0207
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
117
FINANCIAL HIGHLIGHTS
For the period ended March 31, 1998 (unaudited)
and for the periods ended September 30,
For a share outstanding throughout the period
<TABLE>
<CAPTION>
REALIZED AND
NET ASSET NET UNREALIZED DIVIDENDS NET ASSET
VALUE INVESTMENT GAINS OR FROM NET DISTRIBUTIONS VALUE
BEGINNING INCOME (LOSSES) ON INVESTMENT FROM END OF
OF PERIOD (LOSS) INVESTMENT INCOME CAPITAL GAINS PERIOD
...................................................................................
<S> <C> <C> <C> <C> <C> <C>
INTERNATIONAL FUND
CLASS Y
1998* $ 13.23 $ 0.17 $ 0.90 $ (0.51) $ (0.25) $ 13.54
1997 10.31 0.03 3.06 (0.17)(C) -- 13.23
1996 10.30 (0.01) 0.22 (0.20)(C) -- 10.31
1995 10.22 0.01 0.07 -- -- 10.30
1994(12) 10.00 (0.01) 0.23 -- -- 10.22
RETAIL CLASS A
1998* $ 13.18 $ 0.32 $ 0.76 $ (0.46) $ (0.25) $ 13.55
1997 10.28 0.01 3.04 (0.15)(C) -- 13.18
1996 10.28 (0.02) 0.20 (0.18)(C) -- 10.28
1995 10.21 -- 0.07 -- -- 10.28
1994(4) 9.98 (0.01) 0.24 -- -- 10.21
RETAIL CLASS B
1998* $ 12.97 $ (0.04) $ 1.04 $ (0.41) $ (0.25) $ 13.31
1997 10.14 (0.08) 3.01 (0.10)(C) -- 12.97
1996 10.20 (0.07) 0.17 (0.16)(C) -- 10.14
1995 10.21 (0.03) 0.02 -- -- 10.20
1994(3) 10.23 (0.01) (0.01) -- -- 10.21
HEALTH SCIENCES FUND
CLASS Y
1998* $ 12.08 $ 0.01 $ 0.78 $ (0.01) $ (1.46) $ 11.40
1997 9.87 (0.01) 2.33 (0.01) (0.10) 12.08
1996(13) 10.00 0.03 (0.15) (0.01) -- 9.87
RETAIL CLASS A
1998* $ 12.05 $ -- $ 0.77 $ -- $ (1.46) 11.36
1997 9.86 (0.01) 2.30 -- (0.10) 12.05
1996(13) 10.00 0.01 (0.14) (0.01) -- 9.86
RETAIL CLASS B
1998* $ 11.90 $ -- $ 0.72 $ -- $ (1.46) $ 11.16
1997 9.81 (0.01) 2.20 -- (0.10) 11.90
1996(13) 10.00 (0.02) (0.16) (0.01) -- 9.81
TECHNOLOGY FUND
CLASS Y
1998* $ 20.29 $ -- $ 0.14 $ -- $ (1.21) $ 19.22
1997 19.29 (0.06) 3.12 -- (2.06) 20.29
1996 18.24 (0.04) 2.98 -- (1.89) 19.29
1995 11.19 (0.03) 7.31 -- (0.23) 18.24
1994(4) 10.00 (0.01) 1.20 -- -- 11.19
RETAIL CLASS A
1998* $ 20.20 $ -- $ 0.08 $ -- $ (1.21) $ 19.07
1997 19.25 (0.11) 3.12 -- (2.06) 20.20
1996 18.24 (0.05) 2.95 -- (1.89) 19.25
1995 11.19 (0.03) 7.31 -- (0.23) 18.24
1994(4) 10.00 (0.01) 1.20 -- -- 11.19
RETAIL CLASS B
1998* $ 19.58 $ -- $ 0.03 $ -- $ (1.21) $ 18.40
1997 18.85 (0.20) 2.99 -- (2.06) 19.58
1996 18.02 (0.14) 2.86 -- (1.89) 18.85
1995 11.17 (0.04) 7.12 -- (0.23) 18.02
1994(3) 9.85 (0.02) 1.34 -- -- 11.17
</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 TO NET ASSETS PORTFOLIO COMMISSION
TOTAL END OF AVERAGE AVERAGE (EXCLUDING TURNOVER RATE
RETURN (A) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) RATE (B)
............................................................................................
<S> <C> <C> <C> <C> <C> <C> <C>
INTERNATIONAL FUND
CLASS Y
1998* 8.05%+ $336,651 1.53% (0.36)% 1.59% 53% $ 0.1473
1997 30.38 217,414 1.67 0.06 1.67 96 0.0199
1996 2.11 135,238 1.72 (0.06) 1.72 100 0.0345
1995 0.78 94,400 1.74 0.12 1.81 57 --
1994(12) 2.20+ 47,963 1.75 (0.19) 2.05 16 --
RETAIL CLASS A
1998* 8.16%+ $ 10,818 1.78% (0.45)% 1.82% 53% $ 0.1473
1997 30.03 8,003 1.92 (0.09) 1.92 96 0.0199
1996 1.84 1,964 1.97 (0.28) 1.97 100 0.0345
1995 0.69 876 1.93 (0.13) 2.06 57 --
1994(4) 2.30+ 464 1.75 (0.26) 2.30 16 --
RETAIL CLASS B
1998* 7.68%+ $ 2,616 2.53% (1.41)% 2.60% 53% $ 0.1473
1997 29.13 2,188 2.67 (0.94) 2.67 96 0.0199
1996 1.02 1,175 2.72 (0.96) 2.72 100 0.0345
1995 (0.10) 306 2.76 (0.95) 2.81 57 --
1994(3) (0.20)+ 22 2.75 (0.71) 3.05 16 --
HEALTH SCIENCES FUND
CLASS Y
1998* 8.77%+ $ 38,952 0.90% 0.34% 0.94% 22% $ 0.0600
1997 23.89 41,243 0.90 0.06 1.04 54 0.0695
1996(13) (1.20)+ 12,485 0.90 0.43 1.87 19 0.0700
RETAIL CLASS A
1998* 8.61%+ $ 2,431 1.15% 0.15% 1.19% 22% $ 0.0600
1997 23.60 849 1.15 (0.20) 1.29 54 0.0695
1996(13) (1.32)+ 629 1.15 0.18 2.12 19 0.0700
RETAIL CLASS B
1998* 8.24%+ $ 749 1.90% (0.65)% 1.94% 22% $ 0.0600
1997 22.69 516 1.90 (0.94) 2.04 54 0.0695
1996(13) (1.86)+ 281 1.90 (0.61) 2.87 19 0.0700
TECHNOLOGY FUND
CLASS Y
1998* 2.13%+ $136,293 0.90% (0.43)% 0.90% 53% $ 0.0599
1997 17.95 148,659 0.90 (0.41) 0.92 150 0.0675
1996 18.85 64,602 0.90 (0.60) 1.01 119 0.0700
1995 66.22 29,272 0.88 (0.35) 1.30 74 --
1994(4) 11.90+ 6,491 0.80 (0.21) 3.12 43 --
RETAIL CLASS A
1998* 1.84%+ $ 11,901 1.15% (0.61)% 1.15% 53% $ 0.0599
1997 17.71 5,564 1.15 (0.59) 1.17 150 0.0675
1996 18.60 4,799 1.15 (0.85) 1.26 119 0.0700
1995 66.22 1,464 1.13 (0.61) 1.55 74 --
1994(4) 11.90+ 61 0.80 (0.21) 3.37 43 --
RETAIL CLASS B
1998* 1.63%+ $ 9,296 1.90% (1.42)% 1.90% 53% $ 0.0599
1997 16.82 8,463 1.90 (1.41) 1.92 150 0.0675
1996 17.75 4,881 1.90 (1.60) 2.01 119 0.0700
1995 64.52 2,031 1.88 (1.41) 2.30 74 --
1994(3) 13.40+ 2 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.
(D) The financial highlights for Small Cap Value Fund and International Index
Fund as set forth herein include the historical financial highlights of the
Qualivest Small Companies Fund and Qualivest International Opportunities
Fund Class A and Y shares. The assets of the Small Companies Fund and
International Opportunities Fund were acquired by Small Cap Value Fund and
International Opportunities Fund on November 21, 1997. In connection with
such acquisition, (I) Class A and Class C shares of the Qualivest Small
Companies Value Fund and Qualivest International Opportunities Fund were
exchanged for Class A shares of Small Cap Value Fund and International
Index Fund; and (ii) Qualivest Class Y shares were exchanged for Class Y
shares of Small Cap Value Fund and International Index Fund.
(1) Class Y shares (formerly Institutional Class C shares) have been offered
since August 2, 1994. All ratios for the period have been annualized.
(2) Commenced operations December 14, 1992. All ratios for the period have been
annualized.
(3) Retail Class B shares have been offered since August 15, 1994. All ratios
for the period have been annualized.
(4) Commenced operations April 4, 1994. All ratios for the period have been
annualized.
(5) For the period December 1, 1997 to March 31, 1998. All ratios for the
period have been annualized. The First American Board of Directors approved
a change in the fund's fiscal year end from November 30 to September 30,
effective September 30, 1998.
(6) For the period August 1, 1997 to November 30, 1997. All ratios for the
period have been annualized. The First American Board of Directors approved
a change in the fund's fiscal year end from July 31 to November 30,
effective November 30, 1997.
(7) For the period ended July 31.
(8) Commenced operations August 1, 1994. All ratios for the period have been
annualized.
(9) Commenced operations November 24, 1994. All ratios for the period have been
annualized.
(10) Commenced operations August 8, 1997. All ratios for the period have been
annualized.
(11) Commenced operations on July 3, 1995. All ratios for the period have been
annualized.
(12) Retail Class A shares have been offered since April 7, 1997. All ratios for
the period have been annualized.
(13) Commenced operations January 31, 1996. All ratios for the period have been
annualized.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
118
NOTES TO FINANCIAL STATEMENTS
March 31, 1998
(Unaudited)
1 ORGANIZATION
The First American Prime Obligations Fund, Government Obligations Fund Treasury
Obligations Fund and Tax Free 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 Intermediate Tax Free Fund
(formerly Minnesota Insured Intermediate Tax Free Fund), Oregon Intermediate
Tax Free Fund, Balanced Fund, Real Estate Securities Fund, Equity Income Fund,
Equity Index Fund, Large Cap Value Fund (formerly Stock Fund), Large Cap Growth
Fund (formerly Diversified Growth Fund), Mid Cap Value Fund (formerly Special
Equity Fund), Regional Equity Fund, Small Cap Value Fund, Small Cap Growth Fund
(formerly Emerging Growth Fund), Micro Cap Value Fund, International Index
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, 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 D and Class Y (formerly Class C) 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 D and Y shares are offered only to
qualifying institutional investors. Class A and B shares are not offered by the
Government Obligations Fund. Class B Shares are not offered by Treasury
Obligations Fund.
FAIF offers Class A, Class B and Class Y (formerly 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 Y 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.
SECURITY TRANSACTIONS AND INVESTMENT INCOME -- The Funds record security
transactions on the trade date of the security
<PAGE>
119
NOTES TO FINANCIAL STATEMENTS
March 31, 1998
(Unaudited)
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
Intermediate Tax Free Fund, Oregon Intermediate Tax Free Fund, Balanced Fund,
Equity Income Fund, Equity Index Fund, Large Cap Value Fund, Large Cap Growth
Fund and Mid Cap Value Fund declare and pay income dividends monthly. Real
Estate Securities Fund, Regional Equity Fund, Small Cap Value Fund, Small Cap
Growth Fund, International Index 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 which were recognized
for book purposes but not for tax purposes.
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 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
<PAGE>
120
NOTES TO FINANCIAL STATEMENTS
March 31, 1998
(Unaudited)
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
Index Fund and 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 Index Fund and International Fund do 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 Index Fund and International Fund report 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 assets. 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 assets 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.
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 and liabilities at the date of the financial statements and the reported
results of operations during the reporting period. Actual results could differ
from those estimates.
<PAGE>
121
NOTES TO FINANCIAL STATEMENTS
March 31, 1998
(Unaudited)
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
each FAIF fund an amount equal to the investment advisory fee earned by FAF
related to such investments.
Through a separate contractual agreement, U.S. Bank Trust National Association,
an affiliate of the Adviser, serves as the Funds' custodian.
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 SIDCO 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 Class
D shares, which may be used by SIDCO to provide compensation for sales support
and distribution activities. No distribution fees are paid by Class Y 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. U.S. Bank
assists the Administrator and provides sub-administration services for the
Funds. For these services, the Administrator compensates the sub-administrator
at an annual rate of up to 0.05% of each Fund's average daily net assets.
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 March 31, 1998, 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.
<TABLE>
<CAPTION>
CONTINGENT DEFERRED SALES CHARGE
AS A PERCENTAGE OF DOLLAR
YEAR SINCE PURCHASE AMOUNT SUBJECT TO CHARGE
..................... ..................................
<S> <C>
First 5.00%
Second 5.00%
Third 4.00%
Fourth 3.00%
Fifth 2.00%
Sixth 1.00%
Seventh 0.00%
Eighth 0.00%
</TABLE>
For the period ended March 31, 1998, sales charges retained by SIDCO for
distributing the Funds' shares were approximately $198,000.
<PAGE>
122
NOTES TO FINANCIAL STATEMENTS
March 31, 1998
(Unaudited)
4 INVESTMENT SECURITY TRANSACTIONS
During the period ended March 31, 1998, purchases of securities and proceeds
from sales of securities, other than temporary investments in short-term
securities, were as follows (000):
<TABLE>
<CAPTION>
U.S. GOVERNMENT OTHER INVESTMENT
SECURITIES SECURITIES
...................... .......................
PURCHASES SALES PURCHASES SALES
----------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
Limited Term
Income Fund $26,343 $39,088 $60,841 $41,669
Intermediate Term
Income Fund 297,732 418,509 98,215 33,250
Intermediate Government
Bond Fund 54,587 25,978 6,476 2,839
Fixed Income Fund 779,707 688,708 188,706 63,183
California Intermediate Tax
Free Fund -- -- 5,333 3,983
Colorado Intermediate Tax
Free Fund -- -- 4,069 2,224
Intermediate Tax
Free Fund -- -- 100,303 71,476
Minnesota Intermediate
Tax Free Fund -- -- 60,482 51,252
Oregon Intermediate Tax Free
Fund -- -- 23,878 29,226
Balanced Fund 182,310 143,499 159,815 14,616
Real Estate
Securities Fund -- -- 37,923 11,976
Equity Income Fund -- -- 39,137 50,986
Equity Index Fund -- -- 141,500 90,312
Large Cap Value Fund -- -- 372,213 472,972
Large Cap Growth Fund -- -- 66,743 90,240
Mid Cap Value Fund -- -- 480,874 421,496
Regional Equity Fund -- -- 23,140 37,292
Small Cap Growth Fund -- -- 26,873 23,494
Small Cap Value Fund -- -- 49,787 27,083
Micro Cap Value Fund -- -- 6,485 41,750
International Index Fund -- -- 91 27,292
International Fund -- -- 205,789 128,744
Health Sciences Fund -- -- 8,149 11,121
Technology Fund -- -- 74,648 96,931
</TABLE>
At March 31, 1998 the total cost of securities for Federal income tax purposes,
was not materially different from amounts reported for financial reporting
purposes. The aggregate gross unrealized appreciation and depreciation for
securities held by the funds at March 31, 1998 is as follows (000):
<TABLE>
<CAPTION>
AGGREGATE AGGREGATE
GROSS GROSS
APPRECIATION DEPRECIATION NET
.............. .............. ..........
<S> <C> <C> <C>
Limited Term Income Fund $ 413 $ (396) $ 17
Intermediate Term
Income Fund 1,953 (1,286) 667
Intermediate Government
Bond Fund 4,896 (164) 4,732
Fixed Income Fund 22,430 (4,062) 18,368
California Intermediate Tax Free
Fund 1,357 (22) 1,335
Colorado Intermediate
Tax Free Fund 3,062 (21) 3,041
Minnesota Intermediate
Tax Free Fund 11,713 (185) 11,528
Oregon Intermediate
Tax Free Fund 6,355 (319) 6,036
Intermediate Tax Free Fund 14,716 (803) 13,913
Balanced Fund 94,682 (3,557) 91,125
Real Estate Securities Fund 8,392 (813) 7,579
Equity Income Fund 162,325 (2,544) 159,781
Equity Index Fund 422,131 (7,443) 414,688
Large Cap Value Fund 399,291 (12,389) 386,902
Large Cap Growth Fund 346,453 (6,223) 340,230
Mid Cap Value Fund 118,190 (14,182) 104,008
Regional Equity Fund 159,459 (13,986) 145,473
Small Cap Growth Fund 57,828 (14,611) 43,217
Small Cap Value 201,430 (29,794) 171,636
Micro Cap Value Fund 79,235 (14,638) 64,597
International Index Fund 143,831 (123,163) 20,668
International Fund 341,133 (268,303) 72,830
Health Sciences Fund 11,598 (2,956) 8,642
Technology Fund 41,573 (4,210) 37,363
</TABLE>
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 sales of securities denominated in a foreign currency. Such contracts, which
protect the value of the fund's investment securities against a decline in the
value of the hedged currency, do not eliminate fluctuations in the underlying
prices of the securities. They simply establish an exchange rate at a future
date. 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.
<PAGE>
123
NOTES TO FINANCIAL STATEMENTS
March 31, 1998
(Unaudited)
The following forward foreign currency contracts were outstanding at March 31,
1998 for the International Fund.
<TABLE>
<CAPTION>
IN NET
CONTRACTS TO EXCHANGE UNREALIZED
SETTLEMENT DELIVER FOR DEPRECIATION
DATES (000) (000) (000)
............ .............. ........... ..............
<S> <C> <C> <C> <C>
Foreign Currency Sales:
4/29/98 CH 28,320 $ 19,386 $ 741
4/29/98 DK 11,560 1,677 35
4/29/98 DM 41,240 22,790 452
4/29/98 FF 86,410 14,242 273
4/29/98 FI 21,080 3,834 70
4/29/98 IT 14,402,010 8,048 148
4/30/98 JY 1,400,660 11,027 468
4/29/98 NG 34,420 16,859 314
4/29/98 PT 573,890 3,092 59
4/29/98 SK 42,590 5,316 (18)
4/29/98 SP 1,056,420 6,873 137
4/29/98 UK 19,160 31,309 (618)
-------- ------
$144,453 $2,061
======== ======
Foreign Currency Purchases:
4/30/98 FF 4,851 $ 798 $ (13)
4/29/98 UK 19,160 31,878 48
======== ======
32,676 $ 35
</TABLE>
CURRENCY LEGEND
---------------
JY Japanese Yen
CH Swiss Frank
NG Netherlands Guilder
DK Danish Krone
PT Portuguese Escudo
DM German Mark
SK Swedish Krona
FF French Franc
SP Spanish Peseta
FI Finnish Mark
UK British Pounds Sterling
IT Italian Lira
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
March 31, 1998, open long S&P 500 Index futures contracts were as follows:
<TABLE>
<CAPTION>
MARKET VALUE
NUMBER COVERED BY UNREALIZED
OF CONTRACTS SETTLEMENT GAIN/(LOSS)
CONTRACTS (000) MONTH (000)
........... .............. ............ ...........
<S> <C> <C> <C>
11 $ 3,054 Jun-98 $ 54
1 278 Jun-98 4
1 278 Jun-98 3
2 555 Jun-98 1
5 1,388 Jun-98 --
5 1,388 Jun-98 --
9 2,499 Jun-98 (16)
2 555 Jun-98 (4)
3 833 Jun-98 (1)
4 1,100 Jun-98 --
------
11,938 $ 41
======
</TABLE>
8 OPTIONS TRANSACTIONS
The Mid Cap Value 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 Mid Cap Value Fund for the period ended March 31, 1998 is as follows:
<TABLE>
<CAPTION>
CALL OPTIONS (000)
..........................
NUMBER OF AMOUNT OF
OPTIONS PREMIUMS
----------- -------------
<S> <C> <C>
Options outstanding at
September 30, 1997 0 $ 0
Options written 9,800 $ 31,275
Options expired or closed (6,500) $(15,335)
------ --------
Options outstanding at
March 31, 1998 3,300 $ 15,940
====== ========
</TABLE>
The fund realized losses of approximately $7,033,000 on written options during
the six month period.
<PAGE>
124
NOTES TO FINANCIAL STATEMENTS
March 31, 1998
(Unaudited)
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 March 31, 1998, the
collateral purchased with cash received and held at March 31, 1998 with respect
to such loans, and income generated during the period from the program were as
follows (000):
<TABLE>
<CAPTION>
INCOME RECEIVED
MARKET VALUE OF FROM SECURITIES
FUND LOANED SECURITIES LENDING
............................. ................... .................
<S> <C> <C>
Government Obligations $375,979 $ 38
Limited Term Income 47,435 17
Intermediate Term Income 222,532 58
Intermediate Government Bond* -- 12
Fixed Income 565,618 133
Balanced 269,077 63
Real Estate Securities 10,191 12
Equity Income 106,166 31
Equity Index 375,266 107
Large Cap Value 398,485 100
Large Cap Growth 275,768 83
Mid Cap Value 179,822 69
Regional Equity 31,266 23
Small Cap Growth 41,189 23
Small Cap Value 72,089 25
Micro Cap Value 27,399 15
Health Sciences 10,628 4
Technology 48,945 32
</TABLE>
<TABLE>
<CAPTION>
MARKET VALUE OF
COLLATERAL PURCHASED
WITH CASH RECEIVED
.................................................
OTHER
MONEY FIXED
REPURCHASE MARKET INCOME
FUND AGREEMENTS INSTRUMENT SECURITIES TOTAL
- ------------------------------- ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
Government Obligations $375,756 $ 223 $ -- $375,979
Limited Term Income 41,270 336 5,883 47,489
Intermediate Term Income 193,610 1,579 27,598 222,787
Intermediate Government Bond* -- -- -- --
Fixed Income 492,105 4,014 70,147 566,266
Balanced 234,105 1,910 33,370 269,385
Real Estate Securities 8,867 72 1,264 10,203
Equity Income 92,368 754 13,166 106,288
Equity Index 326,492 2,663 46,540 375,695
Large Cap Value 346,695 2,828 49,419 398,942
Large Cap Growth 239,927 1,957 34,200 276,084
Mid Cap Value 156,451 1,276 22,301 180,028
Regional Equity 27,202 222 3,878 31,302
Small Cap Growth 35,836 292 5,108 41,236
Small Cap Value 62,719 512 8,940 72,171
Micro Cap Value 23,838 194 3,398 27,430
Health Sciences 9,246 76 1,318 10,640
Technology 42,584 347 6,070 49,001
</TABLE>
* Intermediate Government Bond did not have any securities on loan at
March 31, 1998.
10 CONCENTRATION OF CREDIT RISK
The Intermediate Tax Free Fund, Minnesota 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 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 March 31,
1998, the percentage of portfolio investments by each revenue source was as
follows:
<TABLE>
<CAPTION>
CALIFORNIA COLORADO MINNESOTA OREGON
TAX FREE INTERMEDIATE INTERMEDIATE INTERMEDIATE INTERMEDIATE INTERMEDIATE
OBLIGATIONS TAX FREE TAX FREE TAX FREE TAX FREE TAX FREE
FUND FUND FUND FUND FUND FUND
............. .............. .............. .............. .............. ..............
<S> <C> <C> <C> <C> <C> <C>
Revenue Bonds:
Education 7% 4% 5% 1% 3% 7%
Health Care
Bonds 13 4 3 11 5 6
Transportation
Bonds 3 4 4 1 4 7
Utility Bonds 29 21 12 16 17 17
Pollution
Control
Bonds 2 -- 4 4 1 2
Public Facility
Bonds 3 13 2 4 1 4
Housing Bonds 8 9 4 19 4 11
Other 5 6 8 7 4 5
General
Obligations: 28 38 58 36 61 41
Anticipation
Notes 2 1 -- 1 -- --
--- --- --- --- --- ---
100% 100% 100% 100% 100% 100%
=== === === === === ===
</TABLE>
The rating of long-term debt as a percentage of total value of investments at
March 31, 1998 is as follows:
<TABLE>
<CAPTION>
STANDARD & CALIFORNIA COLORADO MINNESOTA OREGON
POOR'S/ TAX FREE INTERMEDIATE INTERMEDIATE INTERMEDIATE INTERMEDIATE INTERMEDIATE
MOODY'S OBLIGATIONS TAX FREE TAX FREE TAX FREE TAX FREE TAX FREE
RATINGS: FUND FUND FUND FUND FUND FUND
............ ............. .............. .............. .............. .............. ..............
<S> <C> <C> <C> <C> <C> <C>
AAA/Aaa 45% 65% 55% 79% 49% 63%
AA/Aa 26 26 30 15 37 27
A/A 19 9 13 4 14 9
BBB/Baa -- -- -- -- -- --
NR 10 -- 2 2 -- 1
--- --- --- --- --- ---
100% 100% 100% 100% 100% 100%
=== === === === === ===
</TABLE>
Securities rated by only one agency are shown in that category. Securities
rated by both agencies are shown with their highest rating.
<PAGE>
125
NOTES TO FINANCIAL STATEMENTS
March 31, 1998
(Unaudited)
11 COMMON TRUST FUND CONVERSIONS
On December 6, 1997 the Large Companies Value Trust Fund of the Advisor was
converted into the Stock Fund. The assets, which consisted of securities and
related receivables, were converted on a tax-free basis. 10,793,662 of
Institutional Class shares of the Stock Fund were issued at the time of
conversion. The net assets of the Common Fund immediately before the conversion
were $265,739,968. Included in this amount was $86,510,389 of unrealized gains.
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:
<TABLE>
<CAPTION>
COMMON TRUST FUND FAIF FUND
.............................. ............................
<S> <C>
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
--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 Large Cap Growth Fund
First Common Special
Equity Fund Mid Cap Value Fund
First Common Emerging
Growth Fund Samll Cap Growth Fund
First Common Equity
--Health Care Fund Health Sciences Fund
First Common Equity
--Technology Fund Technology Fund
</TABLE>
The assets, which consisted of securities and related receivables, were
converted on a tax-free basis. The number of Class Y shares issued for each
fund and the net assets of each fund (including net unrealized gain/loss)
immediately before the conversion were as follows:
<TABLE>
<CAPTION>
NET
UNREALIZED
COMMON TRUST FUND ASSETS GAIN
.............................. ............. .............
<S> <C> <C>
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
</TABLE>
<TABLE>
<CAPTION>
FAIF FUNDS NET ASSETS SHARES ISSUED
.......................... .............. ...............
<S> <C> <C>
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 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
Large Cap Growth Fund 248,697,158 20,826,561
Mid Cap Value Fund 301,197,052 4,323,320
Small Cap 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
</TABLE>
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:
<TABLE>
<CAPTION>
COMMON TRUST FUND FAIF FUND
............................. ....................
<S> <C>
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 Large Cap Value Fund
</TABLE>
The assets, which consisted of securities and related receivables, were
converted on a tax-free basis. The number of Class Y shares issued for each
fund and the net assets of each fund (including net unrealized gain/loss)
immediately before the conversion were as follows:
<TABLE>
<CAPTION>
NET
UNREALIZED
COMMON TRUST FUND ASSETS GAIN
....................... ............. ............
<S> <C> <C>
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
</TABLE>
<PAGE>
126
NOTES TO FINANCIAL STATEMENTS
March 31, 1998
(Unaudited)
<TABLE>
<CAPTION>
FAIF FUND NET ASSETS SHARES ISSUED
......................... ............. ...............
<S> <C> <C>
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
Large Cap Value Fund 768,278,353 7,432,357
</TABLE>
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:
<TABLE>
<CAPTION>
COMMON TRUST FUND ACQUIRING FUND
.................................... . .
<S> <C>
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 Large Cap Growth Fund
US Bancorp Small Companies Value Micro Cap Fund
</TABLE>
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:
<TABLE>
<CAPTION>
NET
UNREALIZED
COMMON TRUST FUND ASSETS GAIN/(LOSS)
................................ .............. .............
<S> <C> <C>
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
</TABLE>
<TABLE>
<CAPTION>
MUTUAL FUNDS NET ASSETS SHARES ISSUED
.............................. ................ ...............
<S> <C> <C>
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
Large Cap Growth Fund 639,938,121 3,627,848
Micro Cap Fund -- 23,911,778
</TABLE>
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.
12 MERGERS
On November 21, 1997 (November 25, 1997 for Tax Free Obligations Fund), the
following reorganization of the Qualivest funds into the First American family
of Funds took place pursuant to a Plan of Reorganization approved by the
Qualivest shareholders on October 31, 1997:
<TABLE>
<CAPTION>
QUALIVEST ACQUIRED FUND FAF OR FAIF ACQUIRING FUND
................................ ............................
<S> <C>
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 Large Cap Value Fund
International Opportunities Fund International Index Fund
(New FAIF Fund)
</TABLE>
Under the Agreement and Plan of Reorganization, the Qualivest Class A and Class
C shares were exchanged for Retail Class A shares of FAF or FAIF, and Qualivest
Class Q and Class Y shares were exchanged for Institutional shares of FAF or
FAIF.
<PAGE>
127
NOTES TO FINANCIAL STATEMENTS
March 31, 1998
(Unaudited)
The net assets acquired and shares issued by the corresponding FAF/FAIF funds
were as follows:
<TABLE>
<CAPTION>
FUND NET ASSETS SHARES ISSUED
........................ .............. ...............
<S> <C> <C>
Prime Obligations $483,699,838 483,699,838
Treasury Obligations 98,413,424 98,413,424
Tax Free Obligations 38,181,457 38,183,594
Small Cap Value 470,999,663 25,609,746
Intermediate Term Income 188,401,454 18,814,377
Fixed Income 267,142,145 24,125,586
Equity Index 351,685,577 18,031,329
Large Cap Value 170,775,442 7,029,057
International Index 194,706,057 17,489,263
</TABLE>
One November 21, 1997 the shares redeemed by the corresponding Qualivest funds
were as follows:
<TABLE>
<CAPTION>
QUALIVEST ACQUIRED FUND SHARES REDEEMED
................................ .................
<S> <C>
Money Market Fund 483,699,838
Treasury Money Market Fund 98,413,423
Tax Free Money Market Fund 38,183,595
Small Companies Value Fund 25,556,824
Intermediate Bond Fund 18,616,555
Diversified Bond Fund 25,678,152
Optimized Stock Fund 22,037,539
Large Companies Values Fund 12,142,680
International Opportunities Fund 17,489,234
</TABLE>
Included in the net assets from the Qualivest Funds were the following
components:
<TABLE>
<CAPTION>
UNDISTRIBUTED
NET ACCUMULATED NET
ADDITIONAL INVESTMENT REALIZED UNREALIZED
FUND PAID IN CAPITAL INCOME GAIN (LOSS) APPRECIATION
................. ................. ............... ............. ..............
<S> <C> <C> <C> <C>
Money Fund $ -- $ -- $ 191 $ --
US Treasury
Money Market -- -- -- --
Tax Free Money
Market -- -- 470 --
Small Companies
Value 179,992,884 (113,306) 36,052,451 144,053,739
Intermediate Bond 1,642,829 (9,051) 377 1,651,503
Diversified Bond 6,915,147 19,454 (27,174) 6,922,860
Optimized Stock 106,713,369 (14,926) (43,888) 106,772,181
Large Companies
Value 43,193,875 (11,366) (55,655) 43,260,898
International
Opportunities 11,445,733 866,752 3,224,763 7,354,218
</TABLE>
On November 21, 1997, the assets of Asset Allocation Fund were reorganized into
the Balanced Fund. Under the Agreement and Plan of Reorganization, the Asset
Allocation Class A, B, and Y shares were exchanged for Class A, B, and Y shares
of Balanced Fund.
The acquisition was accompanied by a tax-free exchange in which 9,475,207
shares of the Asset Allocation Fund were exchanged for 7,167,873 shares of the
Balanced Fund. Asset Allocation net assets on November 21, 1997 were combined
with those of the Balanced Fund. Included in the net assets of $101,649,757
were $12,097,216 of additional paid in capital, $1,041 of excess of
distribution over net investment income, $146,137 of accumulated net realized
losses and $12,244,394 of net unrealized appreciation.
The acquisitions were accounted for by the method of accounting for tax free
mergers of investment companies (sometimes referred to as the pooling without
restatement method).
13 SUBSEQUENT EVENTS
The Board of Directors of the Piper Funds have approved, pending the approval
of Piper Funds Shareholders, a reorganization of the following Piper Funds into
the First American Family of Funds to take place in July of 1998:
<TABLE>
<CAPTION>
PIPER ACQUIRED FUND FAIF ACQUIRING FUND
.......................... ..............................
<S> <C>
Adjustable Rate Mortgage Adjustable Rate Mortgage
Securities Securities (New FAIF Fund)
Intermediate Bond Fund Intermediate Term Income
Government Income Fixed Income
American Government Fixed Income
Income Fund
American Government Fixed Income
Income Portfolio
American Opportunities Fixed Income
Income Fund
National Tax Exempt Tax Free (New FAIF Fund)
Minnesota Tax Exempt Minnesota Tax Free
(New FAIF Fund)
Balanced Balanced
Growth and Income Large Cap Value
(formerly Stock Fund)
Growth Large Cap Growth
(formerly Diversified Growth)
Small Companies Growth Small Cap Growth
(formerly Emerging Growth)
Pacific-European Growth International
Emerging Markets Growth Emerging Markets
Emerging Growth Mid Cap Growth
(New FAIF Fund)
The Americas' Income Trust Strategic Income
(New FAIF Fund)
Highlander Income Strategic Income
(New FAIF Fund)
</TABLE>
Under the proposed Plan Agreement and Plan for Reorganization the Piper Class A
and Class B shares will be exchanged for Retail Class A shares of FAIF, and
Piper Class Y shares will be exchanged for Class Y shares of FAIF.
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>
128
NOTICE TO SHAREHOLDERS
March 31, 1998
(Unaudited)
Shareholder Voting Results
A special meeting of shareholders was called for October 31, 1997, at which the
shareholders of FAF and FAIF voted on the election of each company's Board of
Directors. The results of the voting were as follows:
<TABLE>
<S> <C>
FIRST AMERICAN FUNDS, INC.
ROBERT J. DAYTON
FOR 3,695,763,249
AGAINST 35,662,367
ABSTAIN 0
ANDREW M. HUNTER
FOR 3,695,763,249
AGAINST 35,662,367
ABSTAIN 0
LEONARD W. KEDROWSKI
FOR 3,695,763,249
AGAINST 35,662,367
ABSTAIN 0
ROBERT L. SPIES
FOR 3,695,763,249
AGAINST 35,662,367
ABSTAIN 0
JOSEPH D. STRAUSS
FOR 3,695,760,459
AGAINST 35,665,157
ABSTAIN 0
VIRGINIA L. STRINGER
FOR 3,695,763,249
AGAINST 35,662,367
ABSTAIN 0
ROGER A. GIBSON
FOR 3,695,763,245
AGAINST 35,662,371
ABSTAIN 0
</TABLE>
<TABLE>
<S> <C>
FIRST AMERICAN INVESTMENT FUNDS, INC.
ROBERT J. DAYTON
FOR 377,492,244
AGAINST 1,441,304
ABSTAIN 0
ANDREW M. HUNTER
FOR 377,551,255
AGAINST 1,382,293
ABSTAIN 0
LEONARD W. KEDROWSKI
FOR 377,587,551
AGAINST 1,345,997
ABSTAIN 0
ROBERT L. SPIES
FOR 377,573,394
AGAINST 1,360,154
ABSTAIN 0
JOSEPH D. STRAUSS
FOR 377,578,622
AGAINST 1,354,926
ABSTAIN 0
VIRGINIA L. STRINGER
FOR 377,573,849
AGAINST 1,359,699
ABSTAIN 0
ROGER A. GIBSON
FOR 377,570,387
AGAINST 1,363,161
ABSTAIN 0
</TABLE>
A second vote took place to ratify KPMG Peat Marwick as independent public
accountants for each Company for the fiscal year ended September 30, 1997. The
results of the vote were as follows:
<TABLE>
<S> <C>
FIRST AMERICAN FUNDS, INC.
FOR 3,669,897,686
AGAINST 30,390,696
ABSTAIN 31,137,233
</TABLE>
<TABLE>
<S> <C>
FIRST AMERICAN INVESTMENT
FUNDS, INC.
FOR 376,339,130
AGAINST 759,179
ABSTAIN 1,835,239
</TABLE>
<PAGE>
129
NOTICE TO SHAREHOLDERS
March 31, 1998
(Unaudited)
A third vote took place to eliminate a fundamental investment restriction of
FAIF, which would allow an FAIF Fund to Mortgage, pledge or hypothecate its
assets. The results of the vote were as follows:
<TABLE>
<S> <C>
FIRST AMERICAN INVESTMENT FUNDS, INC.
LIMITED TERM INCOME FUND
FOR 14,367,941
AGAINST 427,520
ABSTAIN 38,661
INTERMEDIATE TERM INCOME FUND
FOR 27,985,388
AGAINST 309,462
ABSTAIN 170,170
INTERMEDIATE GOVERNMENT BOND FUND
FOR 13,030,478
AGAINST 442,137
ABSTAIN 283,380
FIXED INCOME FUND
FOR 38,144,231
AGAINST 1,688,040
ABSTAIN 792,977
CALIFORNIA INTERMEDIATE TAX FREE FUND
FOR 3,221,692
AGAINST 0
ABSTAIN 0
COLORADO INTERMEDIATE TAX FREE FUND
FOR 3,347,069
AGAINST 20,736
ABSTAIN 121,106
OREGON INTERMEDIATE TAX FREE FUND
FOR 17,617,535
AGAINST 8,831
ABSTAIN 0
MINNESOTA INSURED INTERMEDIATE TAX FREE FUND
FOR 14,469,749
AGAINST 1,052,924
ABSTAIN 497,967
INTERMEDIATE TAX FREE FUND
FOR 31,152,165
AGAINST 669,399
ABSTAIN 285,648
BALANCED FUND
FOR 20,136,452
AGAINST 1,663,766
ABSTAIN 778,664
REAL ESTATE SECURITIES FUND
FOR 1,432,995
AGAINST 147,565
ABSTAIN 31,074
EQUITY INCOME FUND
FOR 19,666,970
AGAINST 263,582
ABSTAIN 258,335
EQUITY INDEX FUND
FOR 20,592,454
AGAINST 213,024
ABSTAIN 155,457
STOCK FUND
FOR 24,484,839
AGAINST 1,946,167
ABSTAIN 383,350
DIVERSIFIED GROWTH FUND
FOR 24,872,929
AGAINST 1,125,391
ABSTAIN 513,621
SPECIAL EQUITY FUND
FOR 14,202,537
AGAINST 1,246,865
ABSTAIN 219,582
REGIONAL EQUITY FUND
FOR 9,751,310
AGAINST 782,159
ABSTAIN 549,918
SMALL CAP GROWTH FUND
FOR 4,552,230
AGAINST 342,774
ABSTAIN 45,630
MICRO CAP VALUE FUND
FOR 23,302,476
AGAINST 53,995
ABSTAIN 11,169
INTERNATIONAL FUND
FOR 10,184,639
AGAINST 486,972
ABSTAIN 110,205
HEALTH SCIENCES FUND
FOR 1,895,529
AGAINST 140,621
ABSTAIN 22,239
TECHNOLOGY FUND
FOR 4,627,443
AGAINST 300,786
ABSTAIN 68,915
</TABLE>
<PAGE>
130
NOTICE TO SHAREHOLDERS
March 31, 1998
(Unaudited)
A fourth vote took place to approve a proposed amendment to FAIF's articles of
incorporation which would reduce the quorum required to conduct business at
shareholders meetings from 30% of all outstanding shares to 10% of all
outstanding shares of FAIF or, in the case of voting by classes or series of
shares, such percentages of the applicable classes or series. The results of
the vote were as follows:
FIRST AMERICAN INVESTMENTS, INC.
FOR 349,996,060
AGAINST 16,148,373
ABSTAIN 4,570,235
FIRST AMERICAN FUNDS BOARD OF DIRECTORS
MR. ROBERT J. DAYTON
MR. ROGER GIBSON
MR. ANDREW M. HUNTER III
MR. LEONARD W. KEDROWSKI
MR. ROBERT SPIES
MR. JOSEPH D. STRAUSS
MS. VIRGINIA L. STRINGER
<PAGE>
FIRST AMERICAN INVESTMENT FUNDS, INC.
FIRST AMERICAN FUNDS, INC.
1 Freedom Valley Drive
Oaks, Pennsylvania 19456
INVESTMENT ADVISOR
FIRST AMERICAN ASSET MANAGEMENT
601 Second Avenue South
Minneapolis, Minnesota 55402
CUSTODIAN
U.S. BANK NATIONAL ASSOCIATION
180 East Fifth Street
St. Paul, Minnesota 55101
ADMINISTRATOR
SEI INVESTMENTS MANAGEMENT CORPORATION
1 Freedom Valley Drive
Oaks, Pennsylvania 19456
TRANSFER AGENT
DST SYSTEMS, INC.
330 West 9th Street
Kansas City, Missouri 64105
DISTRIBUTOR
SEI INVESTMENTS DISTRIBUTION CO.
1 Freedom Valley Drive
Oaks, Pennsylvania 19456
INDEPENDENT AUDITORS
KPMG PEAT MARWICK LLP
90 South Seventh Street
Minneapolis, Minnesota 55402
COUNSEL
DORSEY & WHITNEY LLP
220 South Sixth Street
Minneapolis, Minnesota 55402
This report and the financial statements contained herein are submitted for the
general information of the shareholders of the corporation. The report is not
authorized for distribution to prospective investors in the corporation unless
preceded or accompanied by an effective prospectus for each of the Funds
included. Shares in the Funds are not deposits or obligations of, or guaranteed
or endorsed by, U.S. Bank or any of its affiliates. Such shares are also not
federally insured by the Federal Deposit Insurance Corporation, the Federal
Reserve Board, or any other agency. Investment in the shares involve investment
risk including loss of principal amount invested.
FAIF-1303 5/98
[LOGO] FIRST AMERICAN
THE POWER OF DISCIPLINED INVESTING
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