FIRST AMERICAN FUNDS, INC.
MONEY MARKET
FUNDS
Class A, B and C Shares
1999 ANNUAL REPORT
AND PROSPECTUS
This annual report includes a prospectus that describes in detail the fund's
objective, investment strategy, risks, sales charges, fees and other matters of
interest.
Please read the prospectus carefully before you invest or send money.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN FUNDS, INC.
MONEY MARKET
FUNDS
Class D Shares
1999 ANNUAL REPORT
AND PROSPECTUS
This annual report includes a prospectus that describes in detail the fund's
objective, investment strategy, risks, sales charges, fees and other matters of
interest.
Please read the prospectus carefully before you invest or send money.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN FUNDS, INC.
MONEY MARKET
FUNDS
Class Y Shares
1999 ANNUAL REPORT
AND PROSPECTUS
This annual report includes a prospectus that describes in detail the fund's
objective, investment strategy, risks, sales charges, fees and other matters of
interest.
Please read the prospectus carefully before you invest or send money.
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN FAMILY OF FUNDS INVESTMENTS FOR EVERY GOAL
- ------------------------
HIGHER RISK/RETURN FIRST AMERICAN FUNDS OFFER A FULL RANGE
POTENTIAL OF INVESTMENT STRATEGIES TO HELP YOU
- ------------------------ CREATE A PERSONALIZED, DIVERSIFIED
PORTFOLIO. SUPPORTED BY EXTENSIVE
SECTOR FUNDS RESEARCH AND A HIGHLY DEVELOPED TEAM
APPROACH TO INVESTMENT DECISION MAKING,
INTERNATIONAL FUNDS FIRST AMERICAN FUNDS CAN HELP BUILD A
WINNING STRATEGY FOR ANY INVESTOR.
SMALL CAP FUNDS
MID CAP FUNDS
LARGE CAP FUNDS
STRATEGY FUNDS
BOND FUNDS
TAX FREE BOND FUNDS
MONEY MARKET FUNDS
Government Obligations
Prime Obligations
Tax Free Obligations
Treasury Obligations
- ------------------------
LOWER RISK/RETURN
POTENTIAL
- ------------------------
TABLE OF
CONTENTS
- --------------------------------------------------------------------------------
MESSAGE TO SHAREHOLDERS 1
- --------------------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT 2
- --------------------------------------------------------------------------------
STATEMENTS OF NET ASSETS 4
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS 15
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 16
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 18
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 22
- --------------------------------------------------------------------------------
NOTICE TO SHAREHOLDERS 29
- --------------------------------------------------------------------------------
PROSPECTUS
- --------------------------------------------------------------------------------
An investment in money market funds is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the funds
seek to preserve the value of your investment at $1.00 per share, it is possible
to lose money by investing in the funds.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
<PAGE>
MESSAGE TO SHAREHOLDERS SEPTEMBER 30, 1999
DEAR SHAREHOLDERS:
On behalf of the entire board of directors -- thank you for the ongoing
opportunity you have given us to manage your investments. Each year we are
proud to continue supporting our long-term investors, and we are always
pleased to see the new investors that have joined the First American family
of funds.
We are proud to report that assets within our money market funds --
Government Obligations, Prime Obligations, Tax Free Obligations and
Treasury Obligations -- topped the $20 billion mark during the fiscal year.
Our success reflects the value we bring to individual and institutional
money market investors.
Again, thank you for investing in the First American family of funds. And
as we approach the new millennium, we wish you continued success and
prosperity.
Sincerely,
/s/ Virginia L. Stringer /s/ Paul A. Dow
VIRGINIA L. STRINGER PAUL A. DOW
Chairperson Chief Investment Officer and President
First American Funds, Inc. First American Asset Management
This annual report is not part of the prospectus.
1 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
REPORT OF INDEPENDENT
AUDITORS SEPTEMBER 30, 1999
To the Shareholders and Board of Directors
First American Funds, Inc.
We have audited the accompanying statements of net assets of First American
Funds, Inc. (comprising, respectively, the Government Obligations, Prime
Obligations, Tax Free Obligations and Treasury Obligations Funds) (the
"Funds") as of September 30, 1999, and the related statements of
operations, statements of changes in net assets and financial highlights
for the year then ended. These financial statements and financial
highlights are the responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits. The statements of changes in net
assets for the year ended September 30, 1998, and the financial highlights
for the periods presented through September 30, 1998, were audited by other
auditors whose reports dated November 13, 1998, and September 12, 1997,
expressed unqualified opinions on those statements and financial
highlights.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements and financial highlights. Our procedures
included confirmation of securities owned as of September 30, 1999, by
correspondence with the custodian and brokers. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of each of the respective funds constituting First American Funds, Inc. at
September 30, 1999, and the results of their operations, changes in their
net assets, and their financial highlights for the year then ended, in
conformity with generally accepted accounting principles.
/s/ ERNST & YOUNG LLP
Minneapolis, Minnesota
November 2, 1999
This annual report is not part of the prospectus.
2 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
THIS PAGE WAS INTENTIONALLY LEFT BLANK.
This annual report is not part of the prospectus.
3 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS SEPTEMBER 30, 1999
GOVERNMENT OBLIGATIONS FUND
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 66.8%
Export-Import Bank (A) (B)
5.530%, 10/15/99 $ 15,982 $ 15,983
FFCB
4.800%, 02/01/00 50,000 49,989
5.000%, 05/03/00 10,000 9,994
FHLB
5.260%, 10/01/99 (A) 50,000 50,000
5.340%, 10/01/99 (A) 50,000 49,997
5.300%, 10/01/99 (A) 50,000 49,989
5.305%, 10/01/99 (A) 50,000 49,987
5.355%, 10/01/99 (A) 100,000 99,956
4.930%, 01/19/00 20,000 19,999
4.950%, 01/21/00 15,000 15,005
4.800%, 01/26/00 25,000 24,996
4.950%, 02/17/00 10,000 10,000
5.000%, 02/24/00 20,000 19,998
5.160%, 03/08/00 35,000 35,004
4.970%, 04/20/00 10,000 9,998
5.010%, 04/28/00 10,000 9,998
5.050%, 05/19/00 15,000 14,982
5.125%, 05/19/00 10,000 9,993
5.200%, 05/26/00 20,000 19,991
5.415%, 06/14/00 10,000 9,994
FHLMC
5.186%, 10/18/99 (A) 50,000 49,975
5.208%, 12/14/99 10,000 9,896
5.520%, 03/01/00 15,000 14,650
6.395%, 05/16/00 10,000 10,052
5.491%, 06/02/00 15,000 14,468
5.510%, 06/29/00 15,820 15,161
5.440%, 08/10/00 10,000 9,525
FNMA
5.167%, 10/01/99 50,000 50,000
5.150%, 10/12/99 40,000 39,937
5.193%, 10/15/99 (A) 50,000 49,987
5.193%, 10/24/99 (A) 50,000 49,983
5.870%, 10/25/99 6,850 6,856
5.167%, 11/02/99 26,560 26,440
5.203%, 12/07/99 10,000 9,905
4.990%, 02/22/00 10,000 10,000
4.980%, 03/29/00 8,900 8,895
4.980%, 04/20/00 10,000 9,998
5.650%, 06/12/00 7,060 7,054
6.250%, 06/16/00 10,000 10,043
5.485%, 08/11/00 10,000 9,520
SLMA
5.260%, 10/01/99 (A) 50,000 50,000
5.270%, 10/01/99 (A) 50,000 50,000
5.270%, 10/01/99 (A) 50,000 49,998
5.556%, 10/05/99 (A) 50,000 49,987
5.116%, 10/05/99 (A) 14,000 13,993
7.500%, 03/08/00 8,750 8,827
----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $1,211,003) 1,211,003
----------
OTHER U.S. GOVERNMENT OBLIGATIONS -- 7.7%
Nebhelp (LOC: SLMA)
5.250%, 10/01/99 21,056 21,056
5.270%, 10/08/99 79,000 78,919
New Hampshire Higher Education (LOC: SLMA)
5.270%, 10/27/99 40,381 40,227
----------
TOTAL OTHER U.S. GOVERNMENT OBLIGATIONS
(Cost $140,202) 140,202
----------
GOVERNMENT OBLIGATIONS FUND
(CONCLUDED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- 25.5%
C S First Boston
5.420%, dated 09/30/99, matures
10/01/99, repurchase price
$400,060,222 (collateralized by
U.S. Government Agency Obligations:
total market value: $418,369,905) $ 400,000 $ 400,000
Donaldson Lufkin & Jenrette
5.242%, dated 09/30/99, matures
10/01/99, repurchase price
$62,593,113 (collateralized by
U.S. Treasury Notes: total market
value: $63,836,233) 62,584 62,584
----------
TOTAL REPURCHASE AGREEMENTS
(Cost $462,584) 462,584
----------
TOTAL INVESTMENTS -- 100.0%
(Cost $1,813,789) 1,813,789
----------
OTHER ASSETS AND LIABILITIES, NET (C) -- 0.0% (378)
----------
NET ASSETS:
Portfolio Capital--Class A
($.01 par value--20 billion authorized)
based on 435,210,199 outstanding shares 435,178
Portfolio Capital--Class D
($.01 par value--20 billion authorized)
based on 439,357,863 outstanding shares 439,358
Portfolio Capital--Class Y
($.01 par value--20 billion authorized)
based on 939,115,926 outstanding shares 939,116
Undistributed net investment income 18
Accumulated net realized loss on investments (259)
----------
NET ASSETS -- 100.0% $1,813,411
----------
Net asset value, offering price, and redemption
price per share--Class A $ 1.00
----------
Net asset value, offering price, and redemption
price per share--Class D $ 1.00
----------
Net asset value, offering price, and redemption
price per share--Class Y $ 1.00
----------
(A) Variable Rate Security--the rate reported on the Statement of Net Assets is
the rate in effect as of September 30, 1999. 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 "qualified
institutional 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 5 percent of the
total net assets include the following amounts (000):
Cash collateral received for securities on loan $ 396,592
Payable upon return of securities on loan $(396,592)
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 Mortgage Association
The accompanying notes are an integral part of the financial statements.
This annual report is not part of the prospectus.
4 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
PRIME OBLIGATIONS FUND
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
COMMERCIAL PAPER -- 58.8%
BROKERAGE -- 6.9%
Goldman Sachs
5.861%, 02/01/00 $ 50,000 $ 49,023
Merrill Lynch
5.274%, 10/01/99 100,000 100,000
5.551%, 10/01/99 50,000 50,000
5.318%, 10/29/99 50,000 49,794
Morgan Stanley Dean Witter
5.510%, 02/04/00 (B) 200,000 200,000
Salomon Smith Barney Holdings
5.217%, 10/05/99 100,000 99,943
5.470%, 03/13/00 (B) 200,000 200,000
----------
748,760
----------
CAPTIVE FINANCE -- 7.7%
American Express Credit
5.298%, 10/07/99 50,000 49,956
5.341%, 12/10/99 50,000 49,487
Ford Motor Credit
5.442%, 10/01/99 50,000 50,000
5.312%, 10/06/99 50,000 49,963
5.312%, 10/07/99 50,000 49,956
5.343%, 12/13/99 50,000 49,465
5.352%, 12/14/99 50,000 49,457
5.333%, 12/15/99 50,000 49,455
5.334%, 12/16/99 50,000 49,448
Met Life Funding
5.386%, 10/06/99 42,880 42,848
5.303%, 10/13/99 50,000 49,912
5.322%, 10/14/99 100,000 99,809
5.336%, 10/26/99 100,000 99,631
5.326%, 10/27/99 100,000 99,617
----------
839,004
----------
COMMERCIAL FUNDING CORPORATIONS -- 21.4%
Asset Securitization
5.259%, 10/08/99 (A) 50,000 49,950
Corporate Asset Funding
5.389%, 10/13/99 (A) 50,000 49,911
5.385%, 10/14/99 (A) 50,000 49,904
5.363%, 10/15/99 (A) 50,000 49,896
Corporate Asset Funding
5.470%, 10/15/99 (A) (B) 200,000 199,991
Edison Asset Securitization
(Guarantor: 10% GECC)
5.352%, 10/05/99 (A) 100,000 99,941
5.458%, 11/22/99 (A) 37,164 36,875
6.054%, 01/31/00 (A) 50,000 48,995
5.961%, 02/04/00 (A) 50,000 48,980
5.958%, 02/11/00 (A) 100,000 97,850
6.013%, 02/11/00 (A) 49,000 47,936
Fleet Funding
5.363%, 10/06/99 (A) 50,000 49,963
International Securitization
5.441%, 10/14/99 (A) 29,000 28,943
5.426%, 10/18/99 (A) 29,740 29,664
5.442%, 10/21/99 (A) 40,000 39,880
5.505%, 10/25/99 (A) 30,000 29,891
5.464%, 11/02/99 (A) 80,000 79,615
6.032%, 01/25/00 (A) 51,115 50,143
6.021%, 02/22/00 (A) 48,325 47,190
6.021%, 02/25/00 (A) 50,000 48,802
6.030%, 03/22/00 (A) 21,230 20,633
6.061%, 03/23/00 (A) 20,405 19,825
PRIME OBLIGATIONS FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Pooled Accounts Receivable Capital
(Guarantor: 37% MBIA)
5.355%, 10/12/99 (A) $ 39,490 $ 39,426
5.386%, 10/18/99 (A) 50,000 49,873
5.391%, 10/18/99 (A) 78,457 78,258
5.415%, 10/26/99 (A) 42,587 42,428
5.415%, 10/28/99 (A) 49,231 49,032
5.427%, 11/05/99 (A) 28,248 28,100
5.974%, 03/21/00 (A) 20,606 20,035
5.979%, 04/03/00 (A) 56,715 55,025
Quincy Capital (Guarantor: 10% AMBAC)
5.237%, 10/05/99 (A) 84,215 84,167
5.227%, 10/06/99 (A) 35,938 35,912
5.356%, 10/13/99 (A) 50,000 49,911
5.372%, 10/19/99 (A) 40,000 39,893
5.414%, 11/02/99 (A) 100,000 99,523
5.315%, 12/17/99 (A) 38,941 38,510
Receivables Capital
(Guarantor: 10% AMBAC)
5.236%, 10/04/99 (A) 71,857 71,826
5.306%, 10/04/99 (A) 75,000 74,967
5.219%, 10/06/99 (A) 97,291 97,221
5.239%, 10/07/99 (A) 26,674 26,651
5.229%, 10/08/99 (A) 30,366 30,336
5.374%, 10/22/99 (A) 37,505 37,388
5.414%, 11/01/99 (A) 40,000 39,815
----------
2,313,075
----------
DIVERSIFIED FINANCE -- 3.0%
Allianz America Finance
5.363%, 10/12/99 (A) 29,000 28,953
5.430%, 11/15/99 (A) 39,000 38,738
General Electric Capital
5.218%, 10/04/99 30,000 29,987
5.342%, 10/20/99 50,000 49,860
5.343%, 10/22/99 50,000 49,845
5.246%, 02/02/00 50,000 49,128
5.868%, 04/20/00 50,000 48,415
5.903%, 04/27/00 30,000 29,011
----------
323,937
----------
DOMESTIC BANKS -- 7.8%
Cofco Capital (LOC: BankAmerica:
Expires 09/14/00)
5.418%, 11/15/99 30,000 29,799
5.439%, 11/15/99 30,000 29,798
Citicorp
5.238%, 10/07/99 50,000 49,957
Enterprise Funding
(Guarantor: BankAmerica)
5.347%, 10/06/99 (A) 35,267 35,241
5.350%, 12/08/99 (A) 38,936 38,543
5.999%, 02/15/00 (A) 30,765 30,080
Kittyhawk Funding
(Guarantor: BankAmerica)
5.389%, 10/12/99 (A) 38,000 37,938
5.360%, 10/15/99 (A) 57,682 57,562
5.483%, 10/15/99 (A) 65,000 64,862
5.470%, 12/02/99 (A) 36,862 36,519
5.943%, 02/15/00 (A) 35,000 34,231
This annual report is not part of the prospectus.
5 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS SEPTEMBER 30, 1999
PRIME OBLIGATIONS FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Variable Funding Capital
(Guarantor: First Union)
5.203%, 10/07/99 (A) $ 75,000 $ 74,936
5.403%, 10/21/99 (A) 100,000 99,702
5.450%, 12/09/99 (A) 25,000 24,742
5.480%, 03/09/00 100,000 100,000
5.503%, 03/23/00 100,000 100,000
----------
843,910
----------
DOMESTIC BRANCH, FOREIGN BANK -- 2.1%
Galicia Buenos Aires Funding
(LOC: Dresdner Bank of New York:
Expires 07/02/02)
5.400%, 03/28/00 45,000 43,792
Pemex Capital (LOC: Societe Generale NY:
Expires 12/10/99)
5.239%, 10/08/99 36,950 36,913
5.372%, 10/12/99 50,000 49,918
5.373%, 10/20/99 50,000 49,859
5.259%, 10/25/99 50,000 49,827
----------
230,309
----------
FOREIGN BANK -- 2.5%
Banca Serfin S A Institution de Banca
Multiple Grupo (LOC: Barclays Bank
Expires: 11/24/99)
5.075%, 11/19/99 35,000 34,767
Banco Bradesco (LOC: Barclays Bank:
Expires 06/19/00)
5.469%, 01/18/00 35,000 34,438
5.701%, 03/17/00 45,808 44,632
Banco Itau (LOC: Barclays Bank:
Expires 06/15/00)
5.997%, 05/26/00 20,000 19,241
Banco Rio de LA Planta (LOC: Barclays
Bank: Expires 03/09/00)
5.524%, 02/03/00 50,000 49,071
5.590%, 02/04/00 44,000 43,169
CSN Overseas (LOC: Barclays Bank
Expires: 08/31/00)
6.050%, 02/28/00 42,872 41,818
----------
267,136
----------
FOREIGN FUNDING CORPORATIONS -- 0.9%
Dorada Finance
5.976%, 04/10/00 (A) 25,000 24,231
5.991%, 04/25/00 (A) 30,000 29,005
K2 USA LLC
4.986%, 10/12/99 (A) 10,250 10,235
5.955%, 05/30/00 (A) 36,500 35,101
----------
98,572
----------
INSURANCE -- 1.3%
Aquinas Funding (Guarantor: MBIA)
5.378%, 10/12/99 75,000 74,877
5.955%, 03/24/00 65,700 63,860
----------
138,737
----------
PRIME OBLIGATIONS FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
RETAIL FUNDING CORPORATIONS -- 5.2%
Dakota Trust Certificates
(Citibank Credit Card Trust)
5.358%, 10/05/99 (A) $ 50,000 $ 49,970
5.378%, 10/05/99 (A) 50,000 49,970
5.260%, 10/22/99 (A) 50,000 49,849
5.400%, 11/03/99 (A) 50,000 49,754
5.411%, 11/10/99 (A) 100,000 99,403
5.989%, 01/21/00 (A) 50,000 49,087
Providian Master Trust Series 1993-3
5.601%, 10/01/99 (A) 100,000 100,000
5.387%, 10/12/99 (A) 41,000 40,933
5.389%, 10/19/99 (A) 33,440 33,351
5.390%, 10/19/99 (A) 40,000 39,893
----------
562,210
----------
TOTAL COMMERCIAL PAPER
(Cost $6,365,650) 6,365,650
----------
CORPORATE OBLIGATIONS -- 31.6%
BROKERAGE -- 4.7%
Bear Stearns
6.00%, 10/01/99 (B) 200,000 200,000
Goldman Sachs
5.510%, 10/07/99 (A) (B) 100,000 100,000
5.600%, 10/15/99 (A) (B) 88,000 88,000
WFP Tower B Finance Short Term Trust
(Guarantor: Merrill Lynch)
5.580%, 10/08/99 (A) (B) 122,585 122,585
----------
510,585
----------
DIVERSIFIED FINANCE -- 1.0%
Cit Group Holdings
5.450%, 10/01/99 (B) 100,000 100,000
International Lease Finance
6.140%, 11/10/99 5,000 5,005
6.050%, 11/18/99 6,000 6,007
----------
111,012
----------
FINANCIAL SERVICES -- 0.1%
Norwest Financial
6.050%, 11/19/99 5,000 5,007
----------
FOREIGN BANK -- 1.9%
Restructured Asset Securities
1998-MM-7-1 (Guarantor: Cuisse
Des Depots)
5.431%, 10/17/99 (A) (B) 208,000 207,927
----------
FOREIGN FUNDING CORPORATIONS -- 15.9%
Beta Finance
5.020%, 02/04/00 (A) 40,000 40,000
6.250%, 02/18/00 (A) 10,000 10,016
5.135%, 02/22/00 (A) 30,000 30,000
5.340%, 03/09/00 (A) 25,000 25,000
5.160%, 04/17/00 (A) 30,000 29,997
This annual report is not part of the prospectus.
6 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
PRIME OBLIGATIONS FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Beta Finance
5.806%, 09/15/00 (A) (B) $ 110,000 $ 110,000
Centauri (CC USA LLC)
5.570%, 10/01/99 (A) (B) 150,000 150,000
Centauri (CC USA LLC)
5.130%, 01/19/00 (A) 50,000 50,000
5.045%, 01/28/00 (A) 15,000 15,000
5.085%, 02/10/00 (A) 35,000 35,000
5.330%, 03/06/00 (A) 25,000 25,000
5.200%, 04/03/00 (A) 25,000 24,997
Centauri (CC USA LLC)
5.610%, 10/01/99 (A) (B) 100,000 100,000
Dorada Finance
5.180%, 02/23/00 (A) 20,000 20,000
5.165%, 02/24/00 (A) 50,000 50,000
5.360%, 03/10/00 (A) 25,000 25,000
5.290%, 03/15/00 (A) 25,000 25,000
5.245%, 03/17/00 (A) 25,000 24,999
5.200%, 04/07/00 (A) 20,000 20,000
5.615%, 06/15/00 (A) 50,000 50,000
Dorada Finance
5.565%, 10/01/99 (A) (B) 100,000 100,000
Dorada Finance
6.130%, 10/13/99 (A) 30,000 30,000
K2 USA LLC
5.480%, 04/28/00 (A) (B) 100,000 100,006
K2 USA LLC
5.260%, 05/08/00 (A) 50,000 50,000
5.260%, 05/15/00 (A) 50,000 50,000
5.380%, 05/25/00 (A) 50,000 50,000
5.800%, 07/06/00 (A) 50,000 50,000
5.920%, 07/31/00 (A) 25,000 25,002
Sigma Finance
5.483%, 10/25/99 (A) (B) 100,000 100,000
Sigma Finance
5.160%, 01/14/00 (A) 40,000 40,000
5.125%, 02/09/00 (A) 50,000 50,000
5.110%, 02/16/00 (A) 50,000 50,000
5.190%, 02/25/00 (A) 25,000 25,000
5.240%, 03/01/00 (A) 50,000 50,000
5.410%, 03/13/00 (A) 30,000 30,000
5.440%, 05/24/00 (A) 25,000 25,000
5.732%, 06/28/00 (A) 30,000 30,000
----------
1,715,017
----------
INSURANCE -- 7.6%
Allstate Life Insurance
5.400%, 10/01/99 (B) (C) 50,000 50,000
Allstate Life Insurance
6.209%, 12/31/99 (B) (C) 100,000 100,000
Anchor National Life Insurance
Investment
5.500%, 10/01/99 (B) (C) 75,000 75,000
Commonwealth Life Insurance
5.330%, 10/01/99 (B) (C) 300,000 300,000
First Allmerica Financial Life
Funding
5.471%, 10/01/99 (B) (C) 50,000 50,000
5.418%, 10/26/99 (B) (C) 50,000 50,000
Sun Life Insurance of America
5.610%, 10/01/99 (B) (C) 75,000 75,000
5.750%, 10/01/99 (B) (C) 75,000 75,000
PRIME OBLIGATIONS FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Transamerica Occidental Life
Insurance
5.481%, 10/01/99 (B) (C) $ 50,000 $ 50,000
----------
825,000
----------
RETAIL -- 0.4%
Wal-Mart
5.850%, 06/01/18 46,050 46,019
----------
TOTAL CORPORATE OBLIGATIONS
(Cost $3,420,567) 3,420,567
----------
CERTIFICATES OF DEPOSIT -- 5.8%
Bank of Nova Scotia Halifax
9.000%, 10/01/99 3,000 3,000
Bayerische Landesbank NY
5.120%, 02/23/00 25,000 24,999
5.500%, 08/02/00 63,000 62,963
Deutsche Bank NY
5.000%, 01/06/00 50,000 49,997
Key Bank Cleveland
5.491%, 10/17/99 (B) 200,000 200,000
Rabobank Nederland NY
5.263%, 12/27/99 50,000 49,378
5.110%, 03/20/00 50,000 49,990
UBS AG Stamford
5.075%, 01/13/00 50,000 49,995
5.220%, 03/10/00 25,000 24,997
5.180%, 03/15/00 50,000 49,985
5.340%, 05/24/00 50,000 49,981
5.340%, 05/30/00 10,000 9,985
----------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $625,270) 625,270
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 1.4%
Export-Import Bank
5.530%, 10/15/99 (A) (B) 31,759 31,760
Secondary Market Services (LOC: SLMA)
5.407%, 10/08/99 82,154 82,068
SLMA
5.116%, 10/05/99 (B) 38,400 38,313
----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $152,141) 152,141
----------
LOAN PARTICIPATION CERTIFICATE -- 0.4%
Toronto Dominion Bank (National Rural Utilities)
5.380%, 10/21/99 45,000 45,000
----------
TOTAL LOAN PARTICIPATION CERTIFICATE
(Cost $45,000) 45,000
----------
EURO TIME DEPOSIT -- 1.8%
Marshall & Isley Bank
5.250%, 10/01/99 191,629 191,629
----------
TOTAL EURO TIME DEPOSIT
(Cost $191,629) 191,629
----------
This annual report is not part of the prospectus.
7 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS SEPTEMBER 30, 1999
PRIME OBLIGATIONS FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- 0.1%
Lehman Brothers
5.30%, dated 9/30/99, matures
10/01/99, repurchase price
$18,286,691 (Collateralized by
U.S. Treasury Note: total market
value $18,649,838) 18,284 18,284
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $18,284) 18,284
-----------
TOTAL INVESTMENTS -- 99.9%
(Cost $10,818,541) 10,818,541
-----------
OTHER ASSETS AND LIABILITIES, NET -- 0.1% 10,899
-----------
NET ASSETS:
Portfolio Capital--Class A
($.01 par value--20 billion authorized)
based on 4,170,782,271 outstanding shares $4,170,758
Portfolio Capital--Class B
($.01 par value--20 billion authorized)
based on 4,008,967 outstanding shares 4,007
Portfolio Capital-- Class C
($.01 par value--20 billion authorized)
based on 340,920 outstanding shares 341
Portfolio Capital--Class D
($.01 par value--20 billion authorized)
based on 426,018,495 outstanding shares 426,018
Portfolio Capital--Class Y
($.01 par value--20 billion authorized)
based on 6,228,467,827 outstanding shares 6,228,421
Undistributed net investment income 123
Accumulated net realized loss on investments (228)
-----------
TOTAL NET ASSETS -- 100.0% $10,829,440
-----------
Net asset value, offering price, and redemption
price per share--Class A $ 1.00
-----------
Net asset value, offering price, and redemption
price per share--Class B $ 1.00
-----------
Net asset value and offering price
per share--Class C $ 1.00
-----------
Net asset value, offering price, and redemption
price per share--Class D $ 1.00
-----------
Net asset value, offering price, and redemption
price per share--Class Y $ 1.00
-----------
PRIME OBLIGATIONS FUND (CONTINUED)
DESCRIPTION
- --------------------------------------------------------------------------------
(A) Security sold within the terms of a private placement memorandum, exempt
from registration under section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or other "qualified
institutional investors." These securities have been determined to be liquid
under guidelines established by the Board of Directors.
(B) Variable Rate Security--the rate reported on the Statement of Net Assets is
the rate in effect as of September 30, 1999. The date shown is the next
reset date.
(C) Private Placement Securities considered illiquid investments under
guidelines established by the Board of Directors.
AMBAC--American Municipal Bond Assurance Corporation
GECC--General Electric Capital Corporation
LLC--Limited Liability Corporation
LOC--Letter of Credit
MBIA--Municipal Bond Insurance Association
SLMA--Student Loan Marketing Association
WFP--World Financial Properties
The accompanying notes are an integral part of the financial statements.
This annual report is not part of the prospectus.
8 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
TAX FREE OBLIGATIONS FUND
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 98.3%
ALABAMA -- 1.5%
Jefferson County Sewer Revenue,
Series A54 (RB) (Ins: FGIC)
3.900%, 10/07/99 (A) (C) $ 9,500 $ 9,500
-----------
ALASKA -- 1.6%
Alaska State Housing Finance (RB)
(Ins: MBIA)
3.900%, 10/07/99 (A) (C) 7,355 7,355
Alaska State Industrial Development
Authority (LOC: KredietBank
Expires: 04/15/00) (RB)
3.250%, 10/07/99 (A) 3,245 3,245
-----------
10,600
-----------
COLORADO -- 0.8%
Colorado State Health Facilities Authority,
Boulder Community Hospital
Project B (RB) (Ins: MBIA)
3.800%, 10/07/99 (A) 5,185 5,185
-----------
DELAWARE -- 1.3%
Delaware State (GO)
4.000%, 03/01/00 8,250 8,282
-----------
DISTRICT OF COLUMBIA -- 1.6%
District of Columbia Consortium Revenue
Authority (LOC: First Union
Expires: 06/16/03) (RB)
3.800%, 10/07/99 (A) 10,000 10,000
-----------
FLORIDA -- 3.5%
Dade County, Aviation Series 1984A
(LOC: Morgan Guaranty
Expires: 12/15/00) (RB)
3.750%, 10/07/99 (A) 8,040 8,040
Tampa, Allegheny Health System Revenue,
Pre-refunded @ 102 (RB) (Ins: FGIC)
7.375%, 12/01/99 (B) 3,000 3,081
Tampa, Catholic Health System
Revenue (RB) (Ins: MBIA)
4.500%, 11/15/99 2,000 2,004
Tampa, Occupational License Tax, Series
1996-A (RB) (Ins: FGIC)
3.750%, 10/07/99 (A) 9,300 9,300
-----------
22,425
-----------
GEORGIA -- 1.6%
Dekalb County Pollution Control Revenue
(GTY: General Motors Corp.) (RB)
3.900%, 10/07/99 (A) 7,100 7,100
Georgia State (GO)
6.500%, 12/01/99 3,000 3,017
-----------
10,117
-----------
TAX FREE OBLIGATIONS FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
IDAHO -- 0.8%
Boise Urban Renewal Agency, Parking
Revenue (LOC: Bank America
Expires: 09/07/03) (RB)
3.800%, 10/07/99 (A) $ 5,250 $ 5,250
-----------
ILLINOIS -- 10.7%
Chicago Equipment Notes
(LOC: Harris Trust Expires: 03/15/00)
3.080%, 11/04/99 15,000 15,000
City of Chicago, ABN AMRO
Munitops 1998-3 (GO) (Ins: FGIC)
3.930%, 10/07/99 (A) (C) 10,000 10,000
Illinois State Development Finance
Authority, American College of
Surgeons Project (LOC: Northern Trust
Expires: 08/31/01) (RB)
3.850%, 10/07/99 (A) 4,000 4,000
Illinois State Finance Authority, Goodman
Theater Revenue (LOC: Harris Trust,
Northern Trust, First National Bank Of
Chicago Expires: 01/27/02) (RB)
3.800%, 10/07/99 (A) 7,000 7,000
Illinois State Health Facilities Authority,
Childrens' Memorial Hospital,
Series B (LOC: First National Bank of
Chicago Expires: 11/30/01) (RB)
3.800%, 10/07/99 (A) 4,800 4,800
Illinois State Health Facilities Authority,
Franciscan Eldercare Project,
Series B (LOC: LaSalle National Bank
Expires: 12/31/01) (RB)
3.800%, 10/07/99 (A) 1,150 1,150
Illinois State Health Facilities Authority,
Revolving Fund Pooled Project,
Series C (LOC: First National Bank of
Chicago Expires: 12/31/99) (RB)
3.800%, 10/07/99 (A) 3,000 3,000
Illinois State Health Facilities Authority,
Streeterville Corporation, Series A
(LOC: First National Bank of Chicago
Expires: 03/31/00) (RB)
3.800%, 10/07/99 (A) 9,900 9,900
Oak Forest, Weekly Mode-Homewood Pool
(LOC: First National Bank of
Chicago) (RB)
3.800%, 10/07/99 (A) 5,000 5,000
Schaumburg, Multifamily Housing
(GTY: Merrill Lynch & Co.) (RB)
3.990%, 10/07/99 (A) (C) 9,000 9,000
-----------
68,850
-----------
INDIANA -- 0.4%
Evansville Economic Development
Authority (LOC: Citibank
Expires: 11/01/99) (RB)
4.000%, 10/07/99 (A) (C) 2,500 2,500
-----------
This annual report is not part of the prospectus.
9 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS SEPTEMBER 30, 1999
TAX FREE OBLIGATIONS FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
KANSAS -- 0.3%
Shawnee Industrial Development Revenue,
Shawnee Village Association
(LOC: Texas Commerce
Expires: 03/31/01) (RB)
3.750%, 10/07/99 (A) $ 1,900 $ 1,900
-----------
KENTUCKY -- 2.3%
Clark County Pollution Control
Revenue (GTY: CFC) (RB)
3.100%, 10/15/99 (A) 5,000 5,000
Pendleton County (LOC: Commonwealth
Bank of Australia, NY
Expires: 03/16/01) (TECP)
3.450%, 11/05/99 10,000 10,000
-----------
15,000
-----------
MARYLAND -- 3.9%
Anne Arrundel County (GO)
4.500%, 05/15/00 4,345 4,375
Fredrick County Retirement Community,
Buckinghams Choice, Series E
(LOC: LaSalle National Bank
Expires: 01/15/03) (RB)
4.100%, 10/07/99 (A) 1,500 1,500
Montgomery County School
Improvements Series A (GO)
4.875%, 05/01/00 5,750 5,793
Prince Georges County, Public
Improvements Series A (GO) (Ins: MBIA)
5.100%, 03/01/00 4,000 4,028
Washington Suburban Sanitary District,
Pre-refunded @ 102 (GO)
6.900%, 08/01/00 (B) 4,565 4,782
6.900%, 08/01/00 (B) 4,060 4,253
-----------
24,731
-----------
MICHIGAN -- 4.5%
Hannahville Indian Community Finance &
Building Authority, Building Program,
Series A (LOC: First of America
Expires: 06/15/05) (RB)
3.800%, 10/07/99 (A) (C) 4,000 4,000
Michigan State Hospital Finance Authority,
Series A (LOC: First of America
Expires: 12/15/03) (RB)
3.850%, 10/07/99 (A) 9,000 9,000
Michigan State Hospital Financing Authority,
Series A (LOC: First of America
Expires: 12/15/03) (RB)
3.850%, 10/07/99 (A) 2,300 2,300
3.850%, 10/07/99 (A) 3,725 3,725
3.850%, 10/07/99 (A) 2,500 2,500
Michigan Strategic Fund (GO)
(Ins: FGIC)
3.850%, 10/07/99 (A) (C) 7,495 7,495
-----------
29,020
-----------
TAX FREE OBLIGATIONS FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MINNESOTA -- 9.5%
Bloomington Multifamily Housing Authority,
Rental Housing, Crow/Bloomington
Project (LOC: Credit Suisse NY
Expires: 06/30/05) (RB)
3.850%, 10/07/99 (A) $ 17,005 $ 17,005
Eden Prairie, Multifamily Housing
Authority (LOC: Nationsbank
Expires: 10/15/00) (RB)
3.950%, 10/07/99 (A) 14,905 14,905
Hennepin County, Series A (GO)
4.500%, 12/01/99 1,985 1,990
Minneapolis Hospital Revenue
Lifespan Inc-Abbott Northwestern,
Pre-refunded @ 102 (RB)
7.000%, 12/01/99 (B) 1,200 1,231
Regents of University of Minnesota (RB)
3.800%, 10/07/99 (A) 26,000 26,000
-----------
61,131
-----------
NEVADA -- 1.2%
Nevada State (GO)
3.850%, 10/07/99 (A) (C) 5,000 5,000
Nevada State, ABN AMRO Munitops (GO)
(Ins: MBIA)
3.930%, 10/07/99 (A) (C) 2,500 2,500
-----------
7,500
-----------
NEW HAMPSHIRE -- 0.4%
New Hampshire State Higher Educational &
Health Authority, Alice Peck Day
Lifecare Project (LOC: First Union
Expires: 02/15/01) (RB)
4.050%, 10/07/99 (A) 2,700 2,700
-----------
NEW JERSEY -- 0.3%
New Jersey State (GO)
5.100%, 02/15/00 2,000 2,015
-----------
NORTH CAROLINA -- 1.5%
New Hanover County, Gang Nail Systems
Project (LOC: Harris Trust
Expires: 12/10/99) (RB)
3.850%, 10/07/99 (A) (C) 5,500 5,500
North Carolina State (GO)
5.100%, 03/01/00 4,000 4,029
-----------
9,529
-----------
OHIO -- 2.7%
Greene County Hospital Facilities Revenue,
Series A (LOC: Keybank
Expires: 09/22/04) (RB)
3.750%, 10/07/99 (A) 17,065 17,065
-----------
This annual report is not part of the prospectus.
10 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
TAX FREE OBLIGATIONS FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
OKLAHOMA -- 4.9%
Oklahoma County Finance Authority
(GTY: Merrill Lynch & Co.) (GO)
3.990%, 10/07/99 (A) (C) $ 19,300 $ 19,300
Tulsa Airport Improvement Trust,
Tulsa International Airport
Project (RB) (Ins: FGIC)
3.800%, 10/07/99 (A) 4,000 4,000
Tulsa Industrial Authority (RB)
(Ins: MBIA)
3.850%, 10/07/99 (A) (C) 7,970 7,970
-----------
31,270
-----------
PENNSYLVANIA -- 0.7%
Lehigh County General Purpose Authority,
Phoebe-Devitt Homes Project,
Series B (LOC: First Union National
Bank Expires: 10/29/01) (RB)
3.800%, 10/07/99 (A) 4,265 4,265
-----------
SOUTH CAROLINA -- 5.4%
Berkeley County Pollution Control
Revenue (GTY: Alcoa) (RB)
3.880%, 10/07/99 (A) 13,750 13,750
South Carolina State (GO)
5.500%, 04/01/00 4,500 4,547
York County (GTY: Duke Power) (TECP)
3.550%, 03/08/00 10,400 10,400
York County Pollution Control,
Series N3 (GTY: CFC National Rural) (RB)
3.600%, 03/15/00 (A) 6,000 6,000
-----------
34,697
-----------
SOUTH DAKOTA -- 0.7%
Yankton Industrial Development,
Alumax Project (GTY: Alcoa) (RB)
3.880%, 10/07/99 (A) (C) 4,500 4,500
-----------
TENNESSEE -- 3.4%
Clarksville County Public Building
Authority Revenue (LOC: Nationsbank
Exp. 06/08/02) (RB)
3.800%, 10/07/99 (A) (C) 10,000 10,000
Maury County Health & Educational
Facilities, Southern Healthcare
Systems Project A, Series E (LOC:
Bank One Expires: 07/25/01) (RB)
4.100%, 10/07/99 (A) (C) 4,700 4,700
Nashville & Davidson Counties,
Metropolitan Government Industrial
Development (LOC: Barclays
Expires: 11/15/00) (RB)
3.950%, 10/07/99 (A) 7,035 7,035
-----------
21,735
-----------
TAX FREE OBLIGATIONS FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
TEXAS -- 10.6%
Comal Independent School District
(GTY: PSF) (GO)
3.900%, 10/07/99 (A) (C) $ 10,002 $ 10,002
Dallas (GO)
4.750%, 02/15/00 2,530 2,547
Harris County Health Facilities
Development, Tirr Project (LOC:
Texas Commerce Bank
Expires: 11/07/02) (RB)
4.250%, 10/01/99 (A) 2,280 2,280
Hunt County Industrial Development
Authority, Trico Industries Project
(LOC: ABN AMRO
Expires: 10/02/02) (RB)
3.800%, 10/07/99 (A) 5,730 5,730
Lower Neches Valley Authority,
Texas Neches River Treatment
Project (GTY: Mobil Oil) (RB)
3.770%, 10/07/99 (A) 9,400 9,400
Mansfield Independent School District
(GTY: PSF) (GO)
6.500%, 02/15/00 2,335 2,364
San Antonio Electric & Gas (RB)
(Ins: MBIA)
3.850%, 10/07/99 (A) (C) 7,455 7,455
Texas State (TECP)
3.400%, 03/08/00 3,500 3,500
Texas State Public Financing
Authority (TECP)
3.375%, 02/24/00 8,500 8,500
Texas Public Financing Authority (TECP)
3.500%, 11/16/99 10,000 10,000
Texas State Public Financing Authority,
Series A (GTY: State of Texas) (GO)
8.000%, 10/01/99 3,180 3,180
Texas State University System
Revenue (RB) (Ins: FSA)
4.500%, 03/15/00 3,095 3,116
-----------
68,074
-----------
UTAH -- 0.3%
Salt Lake County Housing Authority,
Multifamily Revenue, Santa Fe
Apartments Project (LOC: Dresdner
Expires: 02/15/01) (RB)
3.850%, 10/07/99 (A) 1,900 1,900
-----------
VERMONT -- 0.6%
Vermont State Student Loan Revenue
(LOC: NATWEST Expires:
12/06/01) (RB)
3.400%, 10/07/99 (A) 3,640 3,640
-----------
VIRGINIA -- 2.2%
Alexandria Industrial Development
Authority, American Red Cross
Project (LOC: First Union
Expires: 03/30/00) (RB)
3.800%, 10/07/99 (A) 6,455 6,455
This annual report is not part of the prospectus.
11 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS SEPTEMBER 30, 1999
TAX FREE OBLIGATIONS FUND (CONTINUED)
DESCRIPTION PAR (000)/SHARES VALUE (000)
- --------------------------------------------------------------------------------
Spotsylvania Industrial Development
Authority, Residential Care Facility,
Chancellors Village, Project A
(LOC: First Union
Expires: 10/01/01) (RB)
3.800%, 10/07/99 (A) $ 7,400 $ 7,400
-----------
13,855
-----------
WASHINGTON -- 9.8%
Port of Seattle, Alaska Airlines
Project,
(LOC: Bank of New York
Expires: 07/31/00) (RB)
3.650%, 10/07/99 (A) (C) 4,600 4,600
Seattle (GO)
4.500%, 03/01/00 3,085 3,105
Seattle Municipal Water
Utility Improvements,
Pre-refunded @ 102 (RB)
7.125%, 05/01/00 (B) 8,515 8,860
Washington State Healthcare Facility
Authority, Fred Hutchinson Cancer
Research Center, Series B
(LOC: Morgan Guaranty
Expires: 07/15/03) (RB)
4.250%, 10/01/99 (A) 1,100 1,100
Washington Health Care Facilities
Authority, Fred Hutchinson Cancer
Research Center, Series 1996
(LOC: Morgan Guaranty
Expires: 07/15/03) (RB)
4.250%, 10/01/99 (A) 6,200 6,200
Washington Health Care Facilities
Authority, Fred Hutchinson Cancer
Research Center, Series 1991-A
(LOC: Morgan Guaranty
Expires: 07/15/03) (RB)
4.250%, 10/01/99 (A) 2,930 2,930
Washington State Housing Finance
Authority, YMCA Tacoma and Pierce
Project A (LOC: Keybank
Expires: 12/22/03) (RB)
3.750%, 10/07/99 (A) 5,500 5,500
Washington State Housing Finance
Authority, YMCA Tacoma and Pierce
Project B (LOC: Keybank
Expires: 12/22/03) (RB)
3.750%, 10/07/99 (A) 5,500 5,500
Washington State Public Power Supply
Systems, Nuclear Project #1 (RB)
3.900%, 10/07/99 (A) (C) 7,000 7,000
Washington State Public Power Supply
Systems, Nuclear Project #3 (RB)
3.850%, 10/07/99 (A) (C) 6,590 6,590
Washington State, Series B,
Pre-refunded @ 100 (GO)
6.600%, 08/01/00 (B) 5,000 5,126
Washington State, Series R-98B (GO)
4.000%, 01/01/00 6,430 6,445
-----------
62,956
-----------
TAX FREE OBLIGATIONS FUND (CONTINUED)
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
WISCONSIN -- 4.9%
Madison (GO)
5.000%, 05/01/00 $ 2,200 $ 2,223
Wisconsin State (GO)
5.750%, 05/01/00 2,000 2,030
Wisconsin State Health & Education
Facilities Authority, Blood Center
Project, Series A (LOC: M&I
Expires: 06/15/02) (RB)
3.750%, 10/07/99 (A) 7,565 7,565
Wisconsin State Health & Education
Facilities Authority, Franciscan
HealthCare, Series A-2
(LOC: Toronto Dominion
Expires: 01/14/02) (RB)
3.770%, 10/07/99 (A) 7,320 7,320
Wisconsin State Health & Education
Facilities Authority, Froedtert
Memorial Hospital Project
(LOC: M&I Expires: 04/15/02) (RB)
3.800%, 10/07/99 (A) 11,100 11,100
Wisconsin State
Pre-refunded @ 101 (GO)
6.250%, 05/01/00 (B) 1,000 1,025
-----------
31,263
-----------
WYOMING -- 3.1%
Gillette Pollution Control Revenue
(LOC: Commerzbank A.G.
Expires: 06/07/04) (RB)
3.800%, 10/07/99 (A) 20,000 20,000
-----------
MULTISTATE -- 1.3%
Clipper Tax Exempt Trust
1998-2 (RB)
4.020%, 10/07/99 (A) (C) 8,500 8,500
-----------
TOTAL MUNICIPAL BONDS
(Cost $629,955) 629,955
-----------
MONEY MARKET FUND -- 1.4%
AIM Tax Free Institutional
Cash Reserve 8,815,000 8,815
-----------
TOTAL MONEY MARKET FUND
(Cost $8,815) 8,815
-----------
TOTAL INVESTMENTS -- 99.7%
(Cost $638,770) 638,770
-----------
OTHER ASSETS AND LIABILITIES, NET -- 0.3% 1,810
-----------
This annual report is not part of the prospectus.
12 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
TAX FREE OBLIGATIONS FUND (CONCLUDED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Portfolio Capital--Class A
($.01 par value--20 billion authorized)
based on 268,657,539 outstanding shares $268,623
Portfolio Capital--Class D
($.01 par value--20 billion authorized)
based on 33,466,554 outstanding shares 33,466
Portfolio Capital--Class Y
($.01 par value--20 billion authorized)
based on 338,508,584 outstanding shares 338,506
Distributions in excess of net investment income (28)
Accumulated net realized gain on investments 13
-----------
TOTAL NET ASSETS -- 100.0% $ 640,580
-----------
Net asset value, offering price, and redemption
price per share--Class A $ 1.00
-----------
Net asset value, offering price, and redemption
price per share--Class D $ 1.00
-----------
Net asset value, offering price, and redemption
price per share--Class Y $ 1.00
-----------
(A) Variable Rate Security--the rate reported on the Statement of Net Assets is
the rate in effect as of September 30, 1999. The date shown is the next
reset date.
(B) Pre-refunded Security--Pre-refunded issues are backed by U.S. Government
Obligations. These bonds mature at the call date. The pre-refunded date is
shown as the maturity date on the Statement of Net Assets. See also the
notes to the financial statements.
(C) Security sold within terms of a private placement memorandum, exempt from
registration under section 144A of the Securities Act of 1933, as amended,
and may be sold only to dealers in that program or other "qualified
institutional investors." These securities have been determined to be liquid
under guidelines established by the Board of Directors.
CFC--National Rural Utilities Cooperative Finance Corporation
FGIC--Financial Guaranty Insurance Corporation
FSA--Financial Security Assurance
GO--General Obligation
GTY--Guaranty
INS--Insured
LOC--Letter of Credit
M&I--Marshall & Ilsley
MBIA--Municipal Bond Insurance Association
NATWEST--National Westminster
PSF--Permanent School Fund
RB--Revenue Bond
TECP--Tax Exempt Commercial Paper
The accompanying notes are an integral part of the financial statements.
TREASURY OBLIGATIONS FUND
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 20.9%
U.S. Treasury Notes
5.875%, 11/15/99 $ 100,000 $ 100,138
5.625%, 11/30/99 50,000 50,078
7.750%, 11/30/99 50,000 50,246
7.750%, 12/31/99 50,000 50,371
5.375%, 01/31/00 25,000 25,050
7.750%, 01/31/00 50,000 50,502
5.875%, 02/15/00 75,000 75,275
5.500%, 02/29/00 25,000 25,078
7.125%, 02/29/00 75,000 75,645
6.875%, 03/31/00 150,000 151,421
6.375%, 05/15/00 75,000 75,654
5.500%, 05/31/00 75,000 75,224
6.250%, 05/31/00 100,000 100,751
5.375%, 06/30/00 50,000 50,005
5.875%, 06/30/00 50,000 50,191
5.375%, 07/31/00 25,000 24,975
6.125%, 07/31/00 50,000 50,298
8.750%, 08/15/00 50,000 51,489
5.125%, 08/31/00 125,000 124,649
6.250%, 08/31/00 25,000 25,173
6.125%, 09/30/00 75,000 75,430
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $1,357,643) 1,357,643
-----------
REPURCHASE AGREEMENTS -- 79.3%
ABN AMRO Securities
5.32%, dated 09/30/99, matures
10/01/99, repurchase price
$280,041,378 (collateralized by
U.S. Treasury Obligations: total
market value $285,600,013) 280,000 280,000
Bear Stearns
5.33%, dated 09/30/99, matures
10/01/99, repurchase price
$280,041,455 (collateralized by
U.S. Treasury Obligations:
total market value $285,603,000) 280,000 280,000
CS First Boston
5.25%, dated 09/30/99, matures
10/01/99, repurchase price
$280,040,833 (collateralized by
U.S. Treasury Obligations:
total market value $288,327,458) 280,000 280,000
Donaldson Lufkin & Jenrette
5.242%, dated 09/30/99, matures
10/01/99, repurchase price
$932,551,770 (collateralized by
U.S. Treasury Obligations: total
market value $951,064,755) 932,416 932,416
Goldman Sachs
5.29%, dated 09/30/99, matures
10/01/99, repurchase price
$280,041,144 (collateralized by
U.S. Treasury Obligations: total
market value $285,600,430) 280,000 280,000
This annual report is not part of the prospectus.
13 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS SEPTEMBER 30, 1999
TREASURY OBLIGATIONS FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Lehman Brothers
5.30%, dated 09/30/99, matures
10/01/99, repurchase price
$481,786,919 (collateralized by
U.S. Treasury Obligations: total
market value $491,233,181) $481,716 $481,716
Morgan Stanley Dean Witter
5.65%, dated 09/30/99, matures
10/01/99, repurchase price
$280,043,944 (collateralized by
U.S. Treasury Obligations: total market
value $286,525,932) 280,000 280,000
Prudential Securities
5.32%, dated 09/30/99, matures
10/01/99, repurchase price
$280,041,377 (collateralized by
U.S. Treasury Obligations: total
market value $285,600,655) 280,000 280,000
Salomon Smith Barney
5.30%, dated 09/30/99, matures
10/01/99, repurchase price
$280,041,222 (collateralized by
U.S. Treasury Obligations:
total market value $285,742,353) 280,000 280,000
Societe Generale
4.90%, dated 09/30/99, matures
10/01/99, repurchase price
$175,023,819 (collateralized by
U.S. Treasury Obligations:
total market value $178,638,981) 175,000 175,000
Societe Generale
5.30%, dated 09/30/99, matures
10/01/99, repurchase price
$800,117,777 (collateralized by
U.S. Treasury Obligations:
total market value $816,005,182) 800,000 800,000
Warburg Dillon Reed 5.32%, dated
09/30/99, matures 10/01/99,
repurchase price $800,118,222
(collateralized by U.S. Treasury
Obligations: total market
value $816,001,514) 800,000 800,000
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $5,149,132) 5,149,132
-----------
TOTAL INVESTMENTS -- 100.2%
(Cost $6,506,775) 6,506,775
-----------
OTHER ASSETS AND LIABILITIES, NET -- (0.2%) (10,287)
-----------
TREASURY OBLIGATIONS FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital--Class A
($.01 par value--20 billion authorized)
based on 23,470,543 outstanding shares $ 23,470
Portfolio Capital--Class D
($.01 par value--20 billion authorized)
based on 3,852,195,829 outstanding shares 3,852,199
Portfolio Capital--Class Y
($.01 par value--20 billion authorized)
based on 2,620,822,494 outstanding shares 2,620,823
Undistributed net investment income 28
Accumulated net realized loss on investments (32)
----------
TOTAL NET ASSETS -- 100.0% $6,496,488
----------
Net asset value, offering price, and redemption
price per share--Class A $ 1.00
----------
Net asset value, offering price, and redemption
price per share--Class D $ 1.00
----------
Net asset value, offering price, and redemption
price per share--Class Y $ 1.00
----------
The accompanying notes are an integral part of the financial statements.
This annual report is not part of the prospectus.
14 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
OPERATIONS FOR THE YEAR ENDED SEPTEMBER 30, 1999, IN THOUSANDS
<TABLE>
<CAPTION>
GOVERNMENT PRIME TAX FREE TREASURY
OBLIGATIONS OBLIGATIONS OBLIGATIONS OBLIGATIONS
FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 91,071+ $553,663 $21,718 $296,503
- ------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 7,246 42,361 2,710 24,069
Less: Waiver of investment advisory fees (1,186) (6,313) (511) (3,744)
Administrator fees 1,068 6,235 399 3,543
Distribution fees - class A 1,097 10,280 718 99
Distribution fees - class B -- 38 -- --
Distribution fees - class C -- 1 -- --
Distribution fees - class D 572 539 46 5,948
Custodian fees 543 3,178 203 1,805
Registration fees 152 573 84 471
Professional fees 64 375 24 212
Transfer agent fees 331 4,806 184 263
Printing 78 356 28 258
Directors' fees 30 175 11 99
Other 49 145 28 104
- ------------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 10,044 62,749 3,924 33,127
======================================================================================================
Investment income - net 81,027 490,914 17,794 263,376
- ------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) ON INVESTMENTS 38 (209) 14 (32)
======================================================================================================
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 81,065 $490,705 $17,808 $263,344
======================================================================================================
</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.
This annual report is not part of the prospectus.
15 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
CHANGES IN NET ASSETS IN THOUSANDS
<TABLE>
<CAPTION>
GOVERNMENT PRIME
OBLIGATIONS FUND OBLIGATIONS FUND
- ------------------------------------------------------------------------------------------------------------------------------
10/1/98 10/1/97 10/1/98 10/1/97
to to to to
9/30/99 9/30/98 9/30/99 9/30/98
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income - net $ 81,027 $ 77,013 $ 490,914 $ 335,494
Net realized gain (loss) on investments 38 (260) (209) (19)
- ------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 81,065 76,753 490,705 335,475
- ------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
class A (18,697) (3,226) (181,035) (64,277)
class B -- -- (140) (88)
class C -- -- (4) --
class D (16,906) (20,839) (16,568) (13,417)
class Y (45,419) (52,935) (293,224) (257,527)
Net realized gain on investments
class A -- -- -- --
class B -- -- -- --
class C -- -- -- --
class D -- -- -- --
class Y -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS (81,022) (77,000) (490,971) (335,309)
==============================================================================================================================
CAPITAL SHARE TRANSACTIONS
AT NET ASSET VALUE OF $1.00 PER SHARE:
Class A:
Proceeds from sales 1,650,447 560,552 15,877,099 7,409,332
Shares issued in connection with acquisition of Qualivest Fund -- -- -- 226,201
Reinvestment of distributions 17,873 1,907 175,570 48,974
Payments for redemptions (1,558,123) (237,478) (15,581,050) (4,203,635)
- ------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
class A transactions 110,197 324,981 471,619 3,480,872
- ------------------------------------------------------------------------------------------------------------------------------
Class B:
Proceeds from sales -- -- 6,253 3,185
Reinvestment of distributions -- -- 126 81
Payments for redemptions -- -- (4,770) (2,888)
- ------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from
class B transactions -- -- 1,609 378
- ------------------------------------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales -- -- 639 --
Reinvestment of distributions -- -- 3 --
Payments for redemptions -- -- (301) --
- ------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from
class C transactions -- -- 341 --
- ------------------------------------------------------------------------------------------------------------------------------
Class D:
Proceeds from sales 1,401,607 2,648,770 1,486,760 1,278,512
Payments for redemptions (1,346,477) (2,601,752) (1,294,419) (1,157,905)
- ------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
class D transactions 55,130 47,018 192,341 120,607
- ------------------------------------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 3,218,268 3,130,459 14,825,991 9,928,887
Shares issued in connection with acquisition of Qualivest Fund -- -- -- 257,499
Reinvestment of distributions 22,941 29,035 128,234 98,240
Payments for redemptions (3,302,378) (3,105,431) (14,171,383) (8,454,911)
- ------------------------------------------------------------------------------------------------------------------------------
(Decrease) Increase in net assets from
class Y transactions (61,169) 54,063 782,842 1,829,715
- ------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
capital share transactions 104,158 426,062 1,448,752 5,431,572
- ------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 104,201 425,815 1,448,486 5,431,738
NET ASSETS AT BEGINNING OF PERIOD 1,709,210 1,283,395 9,380,954 3,949,216
==============================================================================================================================
NET ASSETS AT END OF PERIOD (B) $ 1,813,411 $ 1,709,210 $ 10,829,440 $ 9,380,954
==============================================================================================================================
</TABLE>
(A) The Statements of Changes in Net Assets for the Tax Free Obligations Fund
reflect the change of the Fund's year end from November 30th to September
30th in 1998.
(B) Includes undistributed net investment income (000) of $18 and $13 for
Government Obligations Fund, $123 and $180 for Prime Obligations Fund, and
$28 and $8 for Treasury Obligations Fund at September 30, 1999, and
September 30, 1998, respectively. Includes distributions in excess of $(28),
and undistributed net investment income of $16, $2 for Tax Free Obligations
Fund for September 30, 1999, September 30, 1998, and November 30, 1997,
respectively.
The accompanying notes are an integral part of the financial statements.
This annual report is not part of the prospectus.
16 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
<TABLE>
<CAPTION>
TAX FREE TREASURY
OBLIGATIONS FUND (A) OBLIGATIONS FUND
- -------------------------------------------------------------------------
10/1/98 12/1/97 8/1/97 10/1/98 10/1/97
to to to to to
9/30/99 9/30/98 11/30/97 9/30/99 9/30/98
- -------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 17,794 $ 7,595 $ 379 $ 263,376 $ 242,187
14 -- -- (32) 26
- -------------------------------------------------------------------------
17,808 7,595 379 263,344 242,213
- -------------------------------------------------------------------------
(7,079) (2,317) (287) (1,677) (3,426)
-- -- -- -- --
-- -- -- -- --
(799) (441) -- (171,457) (167,637)
(9,960) (4,823) (94) (90,248) (71,113)
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- (9)
-- -- -- -- (4)
- -------------------------------------------------------------------------
(17,838) (7,581) (381) (263,382) (242,189)
=========================================================================
1,438,162 574,201 13,623 174,704 267,966
-- -- -- -- 86,624
6,862 1,714 295 1,839 3,024
(1,423,553) (357,424) (16,923) (254,808) (255,879)
- -------------------------------------------------------------------------
21,471 218,491 (3,005) (78,265) 101,735
- -------------------------------------------------------------------------
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
- -------------------------------------------------------------------------
-- -- -- -- --
- -------------------------------------------------------------------------
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
- -------------------------------------------------------------------------
-- -- -- -- --
- -------------------------------------------------------------------------
60,330 59,995 1 12,947,653 10,374,909
(56,959) (29,901) -- (12,950,371) (9,367,195)
- -------------------------------------------------------------------------
3,371 30,094 1 (2,718) 1,007,714
- -------------------------------------------------------------------------
600,968 500,926 13,113 8,751,666 8,698,622
-- -- -- -- 11,790
87 129 62 20,667 12,681
(535,531) (238,776) (11,608) (7,955,114) (7,817,288)
- -------------------------------------------------------------------------
65,524 262,279 1,567 817,219 905,805
- -------------------------------------------------------------------------
90,366 510,864 (1,437) 736,236 2,015,254
- -------------------------------------------------------------------------
90,336 510,878 (1,439) 736,198 2,015,278
550,244 39,366 40,805 5,760,290 3,745,012
=========================================================================
$ 640,580 $ 550,244 $ 39,366 $ 6,496,488 $ 5,760,290
=========================================================================
</TABLE>
This annual report is not part of the prospectus.
17 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING, THROUGHOUT THE PERIODS
ENDED SEPTEMBER 30, UNLESS OTHERWISE INDICATED
<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>
GOVERNMENT OBLIGATIONS FUND
class A
1999 $ 1.00 $ 0.043 $ (0.043) $ 1.00
1998(1) 1.00 0.021 (0.021) 1.00
class D
1999 $ 1.00 $ 0.044 $ (0.044) $ 1.00
1998 1.00 0.050 (0.050) 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
class Y
1999 $ 1.00 $ 0.046 $ (0.046) $ 1.00
1998 1.00 0.052 (0.052) 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
PRIME OBLIGATIONS FUND
class A
1999 $ 1.00 $ 0.044 $ (0.044) $ 1.00
1998 1.00 0.050 (0.050) 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
class B
1999 $ 1.00 $ 0.038 $ (0.038) $ 1.00
1998 1.00 0.042 (0.042) 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 C
1999(4) $ 1.00 $ 0.024 $ (0.024) $ 1.00
class D
1999 $ 1.00 $ 0.046 $ (0.046) $ 1.00
1998 1.00 0.051 (0.051) 1.00
1997 1.00 0.050 (0.050) 1.00
1996 1.00 0.051 (0.051) 1.00
1995(5) 1.00 0.038 (0.038) 1.00
class Y
1999 $ 1.00 $ 0.048 $ (0.048) $ 1.00
1998 1.00 0.053 (0.053) 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
- ---------------------------------------------------------------------------------
</TABLE>
+ Returns are for the period indicated and have not been annualized.
(1) Commenced operations on April 29, 1998. 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 February 1, 1999. All ratios for the period have
been annualized.
(5) Commenced operations on January 24, 1995. All ratios for the period have
been annualized.
The accompanying notes are an integral part of the financial statements.
This annual report is not part of the prospectus.
18 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
<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>
4.36% $ 435,227 0.75% 4.28% 0.82%
2.10+ 325,024 0.70 4.93 0.76
4.52% $ 439,287 0.60% 4.44% 0.67%
5.15 384,143 0.60 5.03 0.67
5.04 337,199 0.60 4.92 0.67
5.08 269,382 0.60 4.96 0.69
3.85+ 198,859 0.60 5.45 0.70
4.67% $ 938,897 0.45% 4.57% 0.52%
5.30 1,000,043 0.45 5.18 0.52
5.20 946,196 0.45 5.07 0.52
5.24 777,594 0.45 5.10 0.54
5.55 551,286 0.45 5.44 0.60
4.51% $4,170,881 0.80% 4.42% 0.87%
5.15 3,699,197 0.70 5.00 0.79
5.06 218,261 0.70 4.95 0.77
5.08 135,146 0.70 4.94 0.79
3.84+ 96,083 0.70 5.43 0.82
3.85% $ 4,007 1.45% 3.78% 1.51%
4.37 2,397 1.45 4.29 1.53
4.27 2,018 1.45 4.17 1.52
4.29 1,763 1.45 4.15 1.54
3.28+ 14 1.45 4.70 1.57
2.47%+ $ 341 1.45% 3.75% 1.51%
4.73% $ 426,004 0.60% 4.62% 0.66%
5.26 233,675 0.60 5.13 0.68
5.16 113,064 0.60 5.02 0.67
5.18 109,213 0.60 4.98 0.69
3.86+ 9,735 0.60 5.51 0.72
4.89% $6,228,207 0.45% 4.78% 0.51%
5.42 5,445,685 0.45 5.28 0.53
5.32 3,615,873 0.45 5.19 0.52
5.34 3,166,213 0.45 5.20 0.54
5.64 2,911,055 0.45 5.53 0.60
- -------------------------------------------------------------------------
</TABLE>
This annual report is not part of the prospectus.
19 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING, THROUGHOUT THE PERIODS
ENDED SEPTEMBER 30, UNLESS OTHERWISE INDICATED
<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>
TAX FREE OBLIGATIONS FUND(A)
class A
1999 $ 1.00 $ 0.025 $ (0.025) $ 1.00
1998(1) 1.00 0.024 (0.024) 1.00
1997(2) 1.00 0.010 (0.010) 1.00
1997(3) 1.00 0.027 (0.027) 1.00
1996(3) 1.00 0.028 (0.028) 1.00
1995(3)(4) 1.00 0.017 (0.017) 1.00
class D
1999 $ 1.00 $ 0.026 $ (0.026) $ 1.00
1998(1) 1.00 0.025 (0.025) 1.00
1997(5) 1.00 0.000 (0.000) 1.00
class Y
1999 $ 1.00 $ 0.028 $ (0.028) $ 1.00
1998(1) 1.00 0.026 (0.026) 1.00
1997(2) 1.00 0.011 (0.011) 1.00
1997(3) 1.00 0.031 (0.031) 1.00
1996(3) 1.00 0.032 (0.032) 1.00
1995(3)(4) 1.00 0.019 (0.019) 1.00
TREASURY OBLIGATIONS FUND
class A
1999 $ 1.00 $ 0.042 $ (0.042) $ 1.00
1998(6) 1.00 0.045 (0.045) 1.00
class D
1999 $ 1.00 $ 0.043 $ (0.043) $ 1.00
1998 1.00 0.050 (0.050) 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(7) 1.00 0.031 (0.031) 1.00
class Y
1999 $ 1.00 $ 0.045 $ (0.045) $ 1.00
1998 1.00 0.051 (0.051) 1.00
1997 1.00 0.050 (0.050) 1.00
1996 1.00 0.050 (0.050) 1.00
1995(8) 1.00 0.038 (0.038) 1.00
- --------------------------------------------------------------------------------------
</TABLE>
+ 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 class 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 were 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) For the period December 1, 1997 to September 30, 1998. All ratios for the
period have been annualized. The funds' fiscal year end from November 30 to
September 30, effective September 30, 1998.
(2) For the period August 1, 1997 to November 30, 1997. All ratios for the
period have been annualized. The funds' fiscal year end from July 31 to
November 30, effective November 30, 1997.
(3) For the period ended July 31.
(4) Commenced operations January 9, 1995. All ratios for the period have been
annualized.
(5) Commenced operations November 26, 1997. All ratios for the period have been
annualized. For the period ended November 30.
(6) Commenced operations on November 3, 1997. All ratios for the period have
been annualized.
(7) Commenced operations on October 4, 1993. All ratios for the period have been
annualized.
(8) Commenced operations on January 24, 1995. All ratios for the period have
been annualized.
The accompanying notes are an integral part of the financial statements.
This annual report is not part of the prospectus.
20 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
<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>
2.51% $ 268,626 0.74% 2.47% 0.82%
2.45+ 247,154 0.70 2.84 0.83
0.96+ 28,662 0.89 2.83 1.23
2.76 31,668 0.88 2.73 1.23
2.81 30,143 0.89 2.78 1.25
1.66+ 33,569 1.00 2.98 1.36
2.66% $ 33,464 0.60% 2.62% 0.67%
2.51+ 30,095 0.60 3.02 0.73
0.04+ 1 0.60 3.20 9.07
2.82% $ 338,490 0.45% 2.75% 0.52%
2.67+ 272,995 0.45 3.13 0.58
1.08+ 10,703 0.64 3.09 0.97
3.17 9,137 0.48 3.13 0.83
3.22 3,895 0.41 2.92 0.79
1.88+ 1,264 0.59 3.38 0.94
4.31% $ 23,496 0.70% 4.24% 0.76%
4.54+ 101,749 0.70 4.88 0.76
4.41% $3,852,189 0.60% 4.32% 0.66%
5.10 3,854,933 0.60 4.98 0.66
4.98 2,847,215 0.60 4.88 0.68
5.00 1,616,130 0.60 4.86 0.70
5.22 1,038,818 0.60 5.13 0.70
3.12+ 746,090 0.58 3.19 0.68
4.57% $2,620,803 0.45% 4.49% 0.51%
5.26 1,803,608 0.45 5.13 0.51
5.14 897,797 0.45 5.03 0.53
5.15 317,392 0.45 5.00 0.55
3.83+ 117,171 0.45 5.50 0.55
- --------------------------------------------------------------------------
</TABLE>
This annual report is not part of the prospectus.
21 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
NOTES TO
FINANCIAL STATEMENTS SEPTEMBER 30, 1999
1 > ORGANIZATION
The First American Government Obligations Fund, Prime Obligations Fund,
Tax Free Obligations Fund and Treasury Obligations Fund (collectively,
the "Funds") are funds offered by First American Funds, Inc. ("FAF"). FAF
is registered under the Investment Company Act of 1940, as amended, as an
open-end investment management company. FAF's articles of incorporation
permit the Board of Directors to create additional funds in the future.
FAF offers class A, class B, class C, class D and class Y shares. Class B
shares of the Prime Obligations Fund are only available pursuant to an
exchange for class B shares of another fund in the First American Family
of Funds. Class A shares are not subject to sales charges. Class B shares
may be subject to a contingent deferred sales charge for six years and
automatically convert to class A shares after eight years. Class C shares
may be subject to a contingent deferred sales charge for 18 months. Class
D and class Y shares are offered only to qualifying institutional
investors. Class B and class C shares are not offered by the Government
Obligations Fund, Tax Free Obligations Fund or Treasury Obligations Fund.
The Funds' prospectus provides a description of each Fund's investment
objectives, policies and strategies. All classes of shares in FAF 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 are stated at amortized
cost, which approximates market value. Under the amortized cost method,
any discount or premium is amortized ratably to the expected maturity of
the security and is included in interest income.
SECURITY TRANSACTIONS AND INVESTMENT INCOME - The Funds record security
transactions on the trade date of the security purchase or sale. Interest
income, including amortization of bond premium and discount, is recorded
on the accrual basis.
DISTRIBUTIONS TO SHAREHOLDERS - Distributions from net investment income
are declared on a daily basis and are payable on the first business day
of the following month.
EXPENSES - Expenses that are directly related to one of the Funds are
charged directly to that Fund. Other operating expenses are allocated to
the Funds on the basis of relative net assets. Class specific expenses
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.
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.
Net investment income and net realized gains (losses) may differ for
financial statement and tax purposes because of temporary or permanent
book/tax differences. These differences are primarily due to losses
deferred due to wash sales.
This annual report is not part of the prospectus.
22 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
The character of distributions made during the year from net investment
income or net realized gains may differ from its ultimate
characterization for federal income tax purposes. In addition, due to the
timing of dividend distributions, 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.
As of September 30, 1999, the following funds had capital loss
carryforwards (000):
FUND AMOUNT EXPIRATION DATE
-------------------------------------------------------------------------
Government Obligations $259 2003-2007
Prime Obligations 25 2003-2007
-------------------------------------------------------------------------
The Prime Obligations Fund and Treasury Obligations Fund incurred losses
in the amount of $203,000 and $99,000 from November 1, 1998, to September
30, 1999. As permitted by tax regulations, the funds intend to elect to
defer and treat these losses as arising in the fiscal year ending
September 30, 2000.
On the Statements of Net Assets, the following adjustments were made
(000):
UNDISTRIBUTED ACCUMULATED
NET INVESTMENT NET REALIZED
FUND INCOME GAIN (LOSS)
-------------------------------------------------------------------------
Treasury Obligations $26 $ (26)
-------------------------------------------------------------------------
REPURCHASE AGREEMENTS - Each Fund may enter into repurchase agreements
with member banks of the Federal Reserve or registered broker dealers
whom the Advisor 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 the Fund plus interest negotiated on
the basis of current short-term rates.
Securities pledged as collateral for repurchase agreements are held by
the custodian bank until the respective agreements mature. Each Fund may
also invest in tri-party repurchase agreements. Securities held as
collateral for tri-party repurchase agreements are maintained in a
segregated account by the broker's custodian bank until the maturity of
the repurchase agreement. Provisions of the repurchase agreements ensure
that the market value of the collateral, including accrued interest
thereon, is sufficient in the event of default of the counterparty. If
the counterparty defaults and the value of the collateral declines or if
the counterparty enters an insolvency proceeding, realization of the
collateral by the Fund may be delayed or limited.
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. Each Fund's
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.
HISTORICAL FINANCIAL STATEMENT INFORMATION - The financial information
presented for Tax Free Obligations Fund prior to November 25, 1997, is
that of the former Qualivest Tax Free Money Market Fund. The historical
financial information of the Qualivest Fund was carried over to the newly
formed FAF Fund.
This annual report is not part of the prospectus.
23 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
NOTES TO
FINANCIAL STATEMENTS SEPTEMBER 30, 1999
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.
3 > FEES AND EXPENSES
ADVISORY FEES - Pursuant to an investment advisory agreement (the
"Agreement"), First American Asset Management (the "Advisor"), a division
of U.S. Bank National Association ("U.S. Bank"), manages each Fund's
assets and furnishes related office facilities, equipment, research and
personnel. The Agreement requires each Fund to pay the Advisor a monthly
fee based upon average daily net assets. The fee for each of the Funds is
equal to an annual rate of 0.40% of the average daily net assets. The
Advisor intends to waive fees during the current fiscal year so that
total fund operating expenses do not exceed expense limitations. Fee
waivers may be discontinued at any time.
ADMINISTRATION FEES - SEI Investments Management Corporation ("SIMC")
provides administrative services, including certain accounting, legal and
shareholder services, at an annual rate of 0.07% of each Fund's average
daily net assets. To the extent that the aggregate net assets of the
First American Family of Funds exceed $8 billion, the annual rate for
each FAF Fund is reduced to 0.055% for its relative share of the excess
net assets. Fees are computed daily and paid monthly.
SUB-ADMINISTRATION FEES - The Advisor assists SIMC and provides
sub-administration services for the Funds. For these services, SIMC
compensates the sub-administrator monthly at an annual rate of up to
0.05% of each Fund's average daily net assets. The fees for the year
ended September 30, 1999, were approximately 0.028% of average daily net
assets. Under this agreement, SIMC paid U.S. Bank $8,411,000 in aggregate
for the year ended September 30, 1999 for the First American Family of
Funds. For the Funds included in this annual report for the year ended
September 30, 1999, the amounts paid were as follows (000):
----------------------------------------------------------
Government Obligations Fund $ 494
Prime Obligations Fund 2,884
Tax Free Obligations Fund 183
Treasury Obligations Fund 1,638
----------------------------------------------------------
CUSTODIAN FEES - Through a separate contractual agreement, U.S. Bank
serves as the Funds' custodian. The fee for each fund is equal to an
annual rate of 0.03% of average daily net assets.
DISTRIBUTION FEES - SEI Investments Distribution Co. ("SIDCO") serves as
distributor of the Funds. Under the distribution plan, each Fund pays
SIDCO a monthly distribution fee at an annual rate of 0.25% of each
Fund's average daily net assets of the class A shares, 1.00% of the class
B and class C shares, and 0.15% 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. Under the
agreement, SIDCO
This annual report is not part of the prospectus.
24 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
paid U.S. Bank and its affiliates the following amounts for the funds
included in this annual report, for the year ended September 30, 1999
(000):
U.S. BANCORP U.S. BANK
U.S. BANK PIPER JAFFRAY TRUST
-------------------------------------------------------------------------
Government Obligations Fund $ 166 $ 810 $ 1
Prime Obligations Fund 1,614 8,710 1
Tax Free Obligations Fund 38 507 --
Treasury Obligations Fund 1,539 14 --
-------------------------------------------------------------------------
TRANSFER AGENT FEES - DST Systems, Inc. provides transfer agency services
for the Funds. Effective October 1, 1998, FAF appointed U.S. Bank as
servicing agent to perform certain transfer agent and dividend disbursing
agent services with respect to the class A, class B and class C shares of
the Funds held through accounts at U.S. Bank and its affiliates. As the
servicing agent U.S. Bank was paid $4,921,000 in aggregate for the year
ended September 30, 1999. For the year ended September 30, 1999, fees
paid to U.S. Bank for the funds included in this report were as follows
(000):
----------------------------------------------------------
Government Obligations Fund $ 193
Prime Obligations Fund 3,692
Tax Free Obligations Fund 103
Treasury Obligations Fund --
----------------------------------------------------------
OTHER FEES - 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 year ended September 30, 1999, legal fees and expenses were paid
to a law firm of which the Secretary of the Funds is a partner.
SALES CHARGES - Class B shares are subject to a Contingent Deferred Sales
Charge ("CDSC") imposed on redemptions made in class B shares for the
first six years, and automatically convert to class A shares after eight
years. The CDSC varies depending on the number of years from time of
payment for the purchase of class B shares until the redemption of such
shares.
CONTINGENT DEFERRED SALES CHARGE
AS A PERCENTAGE OF DOLLAR
YEAR SINCE PURCHASE AMOUNT SUBJECT TO CHARGE
---------------------------------------------------------
First 5.00%
Second 5.00%
Third 4.00%
Fourth 3.00%
Fifth 2.00%
Sixth 1.00%
Seventh 0.00%
Eighth 0.00%
---------------------------------------------------------
Class B shares will automatically convert to class A shares eight years
after the first day of the month shares are purchased.
A CDSC of 1.00% is imposed on redemptions made in class C shares for the
first 18 months.
The CDSC for class B shares and class C shares is imposed on the value of
the purchased shares, or the value at the time of redemption, whichever
is less.
This annual report is not part of the prospectus.
25 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
NOTES TO
FINANCIAL STATEMENTS SEPTEMBER 30, 1999
4 > SECURITIES LENDING TRANSACTIONS
In order to generate additional income, certain Funds may lend portfolio
securities representing up to one-third of the value of total assets
(which includes collateral received for securities on loan) to broker
dealers, banks, or other institutional borrowers of securities. As with
other extensions of credit, there may be risks of delay in recovery of
the securities or even loss of rights in the collateral should the
borrower of the security fail financially. The market value of the
securities on loan at September 30, 1999, the collateral held at
September 30, 1999, with respect to such loans, and income generated
during the year ended September 30, 1999, from the program were as
follows (000):
MARKET VALUE OF INCOME RECEIVED FROM
FUND LOANED SECURITIES SECURITIES LENDING
-------------------------------------------------------------------------
Government Obligations $389,166 $108
-------------------------------------------------------------------------
MARKET VALUE OF COLLATERAL PURCHASED WITH CASH RECEIVED
-------------------------------------------------------
REPURCHASE MONEY MARKET FIXED INCOME
FUND AGREEMENTS INSTRUMENTS SECURITIES TOTAL
-------------------------------------------------------------------------
Government Obligations $396,592 $ -- $ -- $396,592
-------------------------------------------------------------------------
U.S. Bank acts as the securities lending agent in transactions involving
the lending of portfolio securities on behalf of the Funds. For these
services, U.S. Bank received $2,270,000 in aggregate for the year ended
September 30, 1999, for the First American Family of Funds. For the year
ended September 30, 1999, securities lending fees for the funds included
in this annual report were as follows (000):
----------------------------------------------------------
Government Obligations Fund $ 69
Prime Obligations Fund --
Tax Free Obligations Fund --
Treasury Obligations Fund --
----------------------------------------------------------
5 > CONCENTRATION OF CREDIT RISK
The Tax Free Obligations Fund invests in securities that include revenue
bonds, tax and revenue anticipation notes, and general obligation bonds.
At September 30, 1999, the percentage of portfolio investments by each
revenue source was as follows (000):
TAX FREE
OBLIGATIONS
FUND
-------------------------------------------------------------------------
Revenue Bonds:
Education 6%
Health Care Bonds 18
Transportation Bonds 2
Utility Bonds 8
Pollution Control Bonds 10
Public Facility Bonds 9
Housing Bonds 14
Other 9
General Obligations 21
Anticipation Notes 3
-------------------------------------------------------------------------
100%
-------------------------------------------------------------------------
This annual report is not part of the prospectus.
26 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
The credit ratings of long-term debt as a percentage of total market
value of investments at September 30, 1999, was as follows:
TAX FREE
OBLIGATIONS
STANDARD & POOR'S/MOODY'S RATINGS: FUND
-------------------------------------------------------------------------
AAA/Aaa 24%
AA/Aa 35
A/A 38
NR 3
-------------------------------------------------------------------------
100%
-------------------------------------------------------------------------
Securities rated by only one agency are shown in that category.
Securities rated by both agencies are shown with their lowest rating.
6 > MERGERS
On November 21, 1997, (November 25, 1997, for Tax Free Obligations Fund)
the following reorganization of certain Qualivest Funds into certain FAF
Funds took place pursuant to a Plan of Reorganization approved by the
Qualivest shareholders on October 31, 1997:
QUALIVEST ACQUIRED FUND FAF ACQUIRING FUND
-------------------------------------------------------------------------
Money Market Fund Prime Obligations Fund
U.S. Treasury Money Market Fund Treasury Obligations Fund
Tax Free Money Market Fund Tax Free Obligations Fund
-------------------------------------------------------------------------
Under the Agreement and Plan of Reorganization, Qualivest class A and
class C shares were exchanged for FAF class A shares, and Qualivest class
Q and class Y shares were exchanged for FAF class Y shares.
Net assets prior to reorganization and shares issued by the corresponding
FAF funds were as follows:
FAF ACQUIRING FUND NET ASSETS SHARES ISSUED
-------------------------------------------------------------------------
Prime Obligations Fund $4,178,199,365 483,699,838
Treasury Obligations Fund 3,798,925,742 98,413,424
Tax Free Obligations Fund -- 38,183,594
-------------------------------------------------------------------------
The shares redeemed by the corresponding Qualivest Funds were as follows:
QUALIVEST ACQUIRED FUND SHARES REDEEMED
-------------------------------------------------------------------------
Money Market Fund 483,699,838
U.S. Treasury Money Market Fund 98,413,424
Tax Free Money Market Fund 38,183,594
-------------------------------------------------------------------------
Included in the net assets from the Qualivest Funds were the following
components:
DISTRIBUTIONS
IN EXCESS OF NET ACCUMULATED NET NET
QUALIVEST ACQUIRED FUND INVESTMENT INCOME REALIZED GAIN ASSETS
-------------------------------------------------------------------------
Money Market Fund $ (5,261) $191 $483,699,838
U.S. Treasury Money Market Fund (3,183) -- 98,413,424
Tax Free Money Market Fund -- 470 38,183,594
-------------------------------------------------------------------------
This annual report is not part of the prospectus.
27 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
NOTES TO
FINANCIAL STATEMENTS SEPTEMBER 30, 1999
7 > SIGNIFICANT EVENTS
On May 1, 1998, U.S. Bancorp acquired Piper Jaffray Companies, Inc. As a
result of this acquisition, all shares of the Piper Money Market Funds
were redeemed, the Funds discontinued operations, and the sweep vehicles
used by Piper Jaffray Inc. in its brokerage accounts were changed to
corresponding FAF Funds.
In connection with this acquisition, the Prime Obligations Fund purchased
the assets of the Piper Institutional Money Market Fund through a
purchase in kind transaction on June 29, 1998. The assets received
totaled approximately $372,875,000, which represented a 5.6% increase to
the total net assets of the Fund.
On July 20, 1998, the Prime Obligations Fund, Government Obligations
Fund, and Tax Free Obligations Fund purchased the assets of the Piper
Money Market Fund, Piper U.S. Government Money Market Fund, and Piper
Tax-Exempt Money Market Fund, respectively, through a purchase in kind
transaction. The assets purchased by Prime Obligations Fund totaled
approximately $2,890,315,000, which represented a 44.7% increase to its
total net assets of that Fund. The assets purchased by the Government
Obligations Fund totaled approximately $332,369,000, which represented a
24.7% increase to its total net assets. The assets purchased by the Tax
Free Obligations Fund totaled approximately $223,954,000, which
represented a 65.1% increase to its total net assets.
This annual report is not part of the prospectus.
28 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
NOTICE TO
SHAREHOLDERS SEPTEMBER 30, 1999 (UNAUDITED)
THE INFORMATION SET FORTH BELOW IS FOR EACH FUND'S FISCAL YEAR AS
REQUIRED BY FEDERAL LAWS. SHAREHOLDERS, HOWEVER, MUST REPORT
DISTRIBUTIONS ON A CALENDAR YEAR BASIS FOR INCOME TAX PURPOSES WHICH MAY
INCLUDE DISTRIBUTIONS FOR PORTIONS OF TWO FISCAL YEARS OF A FUND.
ACCORDINGLY, THE INFORMATION NEEDED BY SHAREHOLDERS FOR INCOME TAX
PURPOSES WILL BE SENT TO THEM IN EARLY 2000. PLEASE CONSULT YOUR TAX
ADVISOR FOR PROPER TREATMENT OF THIS INFORMATION.
Dear First American Fund Shareholders:
For the fiscal year ended September 30, 1999, each Fund designated long
term capital gains and exempt income with regard to distributions paid
during the year as follows:
LONG TERM ORDINARY
CAPITAL GAINS INCOME TAX TOTAL
DISTRIBUTIONS DISTRIBUTIONS EXEMPT DISTRIBUTIONS
FUND (TAX BASIS) (TAX BASIS) INTEREST (TAX BASIS)
-------------------------------------------------------------------------
Government Obligations 0% 100% 0% 100%
Prime Obligations 0 100 0 100
Tax Free Obligations 0 0 100 100
Treasury Obligations 0 100 0 100
-------------------------------------------------------------------------
This annual report is not part of the prospectus.
29 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
THIS PAGE WAS INTENTIONALLY LEFT BLANK.
This annual report is not part of the prospectus.
30 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
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 involves investment
risk including loss of principal amount invested.
Past performance does not guarantee future results. The principal value of an
investment will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost.
FIRST AMERICAN FUNDS, INC.
1 Freedom Valley Drive
Oaks, Pennsylvania 19456
INVESTMENT ADVISOR AND ADMINISTRATOR
FIRST AMERICAN ASSET MANAGEMENT,
A DIVISION OF U.S. BANK NATIONAL ASSOCIATION
601 Second Avenue South
Minneapolis, Minnesota 55402
CUSTODIAN
U.S. BANK NATIONAL ASSOCIATION
180 East Fifth Street
St. Paul, Minnesota 55101
DISTRIBUTOR
SEI INVESTMENTS DISTRIBUTION CO.
1 Freedom Valley Drive
Oaks, Pennsylvania 19456
INDEPENDENT AUDITORS
ERNST & YOUNG LLP
1400 Pillsbury Center
200 South Sixth Street
Minneapolis, Minnesota 55402
COUNSEL
DORSEY & WHITNEY LLP
220 South Sixth Street
Minneapolis, Minnesota 55402
- --------------------------------------------------------------------------------
FIRST AMERICAN FUNDS Bulk Rate
c/o Fulfillment Agent, American Financial Printing Inc. U.S. Postage
404 Industrial Boulevard, N.E. PAID
Minneapolis, MN 55413 Mpls, MN
Permit No. 26388
In an attempt to reduce shareholder costs and help eliminate duplication, the
funds will try to limit their mailing to one report for each address that lists
one or more shareholders with the same last name. If you would like additional
copies, please call Investor Services at 1-800-637-2548.
11/1999 335-99a
<PAGE>
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 involves investment
risk including loss of principal amount invested.
Past performance does not guarantee future results. The principal value of an
investment will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost.
FIRST AMERICAN FUNDS, INC.
1 Freedom Valley Drive
Oaks, Pennsylvania 19456
INVESTMENT ADVISOR AND ADMINISTRATOR
FIRST AMERICAN ASSET MANAGEMENT,
A DIVISION OF U.S. BANK NATIONAL ASSOCIATION
601 Second Avenue South
Minneapolis, Minnesota 55402
CUSTODIAN
U.S. BANK NATIONAL ASSOCIATION
180 East Fifth Street
St. Paul, Minnesota 55101
DISTRIBUTOR
SEI INVESTMENTS DISTRIBUTION CO.
1 Freedom Valley Drive
Oaks, Pennsylvania 19456
INDEPENDENT AUDITORS
ERNST & YOUNG LLP
1400 Pillsbury Center
200 South Sixth Street
Minneapolis, Minnesota 55402
COUNSEL
DORSEY & WHITNEY LLP
220 South Sixth Street
Minneapolis, Minnesota 55402
- --------------------------------------------------------------------------------
FIRST AMERICAN FUNDS Bulk Rate
c/o Fulfillment Agent, American Financial Printing Inc. U.S. Postage
404 Industrial Boulevard, N.E. PAID
Minneapolis, MN 55413 Mpls, MN
Permit No. 26388
In an attempt to reduce shareholder costs and help eliminate duplication, the
funds will try to limit their mailing to one report for each address that lists
one or more shareholders with the same last name. If you would like additional
copies, please call Investor Services at 1-800-637-2548.
11/1999 335-99d
<PAGE>
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 involves investment
risk including loss of principal amount invested.
Past performance does not guarantee future results. The principal value of an
investment will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost.
FIRST AMERICAN FUNDS, INC.
1 Freedom Valley Drive
Oaks, Pennsylvania 19456
INVESTMENT ADVISOR AND ADMINISTRATOR
FIRST AMERICAN ASSET MANAGEMENT,
A DIVISION OF U.S. BANK NATIONAL ASSOCIATION
601 Second Avenue South
Minneapolis, Minnesota 55402
CUSTODIAN
U.S. BANK NATIONAL ASSOCIATION
180 East Fifth Street
St. Paul, Minnesota 55101
DISTRIBUTOR
SEI INVESTMENTS DISTRIBUTION CO.
1 Freedom Valley Drive
Oaks, Pennsylvania 19456
INDEPENDENT AUDITORS
ERNST & YOUNG LLP
1400 Pillsbury Center
200 South Sixth Street
Minneapolis, Minnesota 55402
COUNSEL
DORSEY & WHITNEY LLP
220 South Sixth Street
Minneapolis, Minnesota 55402
- --------------------------------------------------------------------------------
FIRST AMERICAN FUNDS Bulk Rate
c/o Fulfillment Agent, American Financial Printing Inc. U.S. Postage
404 Industrial Boulevard, N.E. PAID
Minneapolis, MN 55413 Mpls, MN
Permit No. 26388
In an attempt to reduce shareholder costs and help eliminate duplication, the
funds will try to limit their mailing to one report for each address that lists
one or more shareholders with the same last name. If you would like additional
copies, please call Investor Services at 1-800-637-2548.
11/1999 335-99y
