LETTER TO SHAREHOLDERS
Dear Shareholder:
The annualized yield for the First Prairie Municipal Money Market Fund
was 1.99% for the six-month fiscal period ended June 30, 1994. The annualized
effective yield after taking into account the effect of compounding was
2.01%.* All this income was exempt from Federal income tax.**
The lower rates provided by the Federal Reserve Board over the last few
years have done their job. The U.S. economy is again on a growth path as
evidenced by the 7% gain in Gross Domestic Product for the fourth quarter of
1993. Consequently, the Fed has begun the next phase of the interest rate
cycle by boosting short-term interest rates. The Fed has publicly stated that
they want the Fed Funds rate at a neutral level.
Earlier this year, in accordance with this policy, the Fed began a series
of rate hikes, initially with quarter-point moves. Fed Chairman Alan
Greenspan wants the bond market to know that he has been and will be an
inflation hawk. In anticipation of this change in policy, we began to shorten
the average maturity of the Fund earlier this year. After the May 17th
Federal Open Market Committee meeting, the Fed raised the Fed Funds rate and
the Discount rate by 50 basis points each to 4.25% and 3.50% respectively. We
began to lengthen our portfolio maturity immediately after these rate boosts
because we felt the Fed would keep rates stable for three to four months to
observe the effect that increasing rates would have on the economy.
Tax exempt rates also increased throughout the first half of 1994.
However, seasonal demand factors also played a powerful role in rate
volatility in the short-term tax exempt market. For example, during the first
half of April, assets flowing into tax exempt money market funds rose
steadily, as is typical during tax season. Subsequently, demand for tax
exempt securities was strong. Yields on highly liquid, one-day demand notes
fell dramatically during this period. Only a couple of weeks later, as money
began to flow back out of tax exempt money funds, rates rebounded. In
anticipation of these types of market fundamentals, we were able to structure
the Fund's investments to take advantage of these large moves in short-term
rates.
Later this year, depending upon how strong the economy is, we anticipate
that the Fed will again raise rates. Consequently, we currently intend to
manage the Fund with an average maturity in the 50- to 60-day range.
We thank you for your investment in this Fund and will continue to use
our best efforts to provide a high level of income, while safeguarding the
integrity of principal.
Sincerely,
(logo signature)
T. Scott McCartan
Chief Investment Officer
First Prairie Funds
July 16, 1994
New York, N.Y.
* Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
** Some income may be subject to the Federal Alternative Minimum Tax (AMT)
for certain shareholders.
<TABLE>
<CAPTION>
FIRST PRAIRIE MUNICIPAL MONEY MARKET FUND
(FORMERLY FIRST PRAIRIE TAX EXEMPT MONEY MARKET FUND)-SEE NOTE 1
STATEMENT OF INVESTMENTS JUNE 30, 1994 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS-100.0% AMOUNT VALUE
-------------- --------------
<S> <C> <C>
ALABAMA-3.7%
City of Phenix, IDB, EIR (Mead Coated Board Project):
CP 3.15%, 10/3/94 (LOC; ABN-Amro Bank) (a).............................. $ 4,000,000 $ 4,000,000
VRDN 3.05%, Series A (LOC; Toronto-Dominion Bank) (a,b)................. 3,000,000 3,000,000
ALASKA-1.6%
City of Valdez, Marine Terminal Revenue, Refunding, CP (Arco Transportation
Project)
3.30%, Series A, 10/4/94 (Guaranteed by; Atlantic Richfield Co.)........ 3,000,000 3,000,000
ARIZONA-1.9%
Maricopa County Pollution Control Corp., PCR, Refunding, VRDN
(Arizona Public Service Co.) 3.30% (LOC; Bank of America) (a,b)......... 3,600,000 3,600,000
ARKANSAS-2.6%
Clark County, SWDR, VRDN (Reynolds Metals Co. Project)
2.65% (LOC; Trust Co. Bank) (a,b)....................................... 5,000,000 5,000,000
CALIFORNIA-.5%
Sacramento County, TRAN 3%, 7/29/94......................................... 1,000,000 1,000,063
COLORADO-1.1%
Platte River Power Authority, Electric Revenue, CP
2.50%, Series S-1, 9/20/94 (SBPA; Morgan Guaranty Trust Co.)............ 2,000,000 2,000,000
DISTRICT OF COLUMBIA-2.7%
District of Columbia, Revenue (Supplemental Student Loan-Consern)
2.80%, 7/1/94 (LOC; Mitsubishi Bank) (a)................................ 5,065,000 5,065,000
FLORIDA-8.5%
Dade County, Solid Waste, IDR, VRDN (Montenay-Dade Limited Project):
2.45%, Series A (LOC; Banque Paribas) (a,b)............................. 3,000,000 3,000,000
2.45% (LOC; Banque Paribas) (a,b)....................................... 3,300,000 3,300,000
First Municipal Loan Council, Revenue, CP (Florida League Project II)
3.30%, 8/11/94 (LOC; Sumitomo Bank) (a)................................. 5,000,000 5,000,000
Martin County Industrial Development Authority, VRDN
(Indiantown Cogeneration Project) 2.30% (LOC; Credit Suisse) (a,b)...... 1,600,000 1,600,000
West Orange Memorial Hospital Tax District, Revenue, CP:
2.30%, Series A-1, 8/4/94 (LOC; Societe Generale) (a)................... 1,100,000 1,100,000
2.40%, Series A-1, 8/4/94 (LOC; Societe Generale) (a)................... 2,000,000 2,000,000
GEORGIA-1.1%
College Park Business and Industrial Development Authority, IDR, VRDN
(Marriott Corp.) 3% (LOC; Bank of Nova Scotia) (a,b).................... 2,000,000 2,000,000
ILLINIOS-2.9%
Decatur, Water Revenue, CP (Newsouth Water Treatment)
3%, 7/5/94 (LOC; Sumitomo Bank) (a)..................................... 2,000,000 2,000,000
Illinois Health Facilities Authority, Revenue, CP (Alexian-D):
2.50%, 7/20/94 (BPA; Morgan Guaranty Trust Co. and Insured; MBIA)....... 1,450,000 1,450,000
2.95%, 10/3/94 (BPA; Morgan Guaranty Trust Co. and Insured; MBIA)....... 1,070,000 1,070,000
3.25%, 10/3/94 (Insured; MBIA and LOC; Morgan Guaranty Trust Co.) (a)... 1,045,000 1,045,000
FIRST PRAIRIE MUNICIPAL MONEY MARKET FUND
(FORMERLY FIRST PRAIRIE TAX EXEMPT MONEY MARKET FUND)-SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1994 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
INDIANA-4.1%
Indiana Development Finance Authority, SWDR, CP
(Pure Air On Lake Project) 3.05%, Series A, 8/2/94 (LOC; Fuji Bank) (a). $ 3,000,000 $ 3,000,000
City of Indianapolis, RRR, VRDN (Ogden Martin Systems)
3% (LOC; Swiss Bank Corp.) (a,b)........................................ 1,900,000 1,900,000
City of Seymour, EDR, VRDN (Kobello Metal Pouder)
2.95% (LOC; Industrial Bank of Japan) (a,b)............................. 2,700,000 2,700,000
IOWA-3.5%
Council Bluffs, Revenue (Catholic Health-Mercy Medical)
3.15%, 10/1/94 (LOC; Fuji Bank) (a)..................................... 1,530,000 1,530,000
Iowa School Corp., Warrants Certificates, Revenue:
3.60%, 12/30/94 (Insured; Capital Guaranty)............................. 2,000,000 2,001,402
4.25%, 7/17/95 (Insured; Capital Guaranty).............................. 3,000,000 3,019,607
KENTUCKY-3.9%
Boone County, IDR, VRDN (Curtin Matheson Scientific Project)
2.90% (LOC; Barclays Bank) (a,b)........................................ 3,000,000 3,000,000
City of Bowling Green, Industrial Building Revenue, VRDN:
(Bando Manufacturing America Project) 2.95% (LOC; Industrial Bank of Japan) (a,b) 1,000,000 1,000,000
(Twin Fastener Inc. Project) 2.95% (LOC; Industrial Bank of Japan) (a,b) 2,400,000 2,400,000
City of Walton, IDR, VRDN (Namco Inc. Project)
2.95% (LOC; Industrial Bank of Japan) (a,b)............................. 1,000,000 1,000,000
LOUISIANA-.4%
State of Louisiana, CP, Refunding:
3.50%, Series A, 7/1/94 (LOC: Credit Locale de France and Fuji Bank) (a) 3,600,000 3,600,000
3.30%, Series A, 8/4/94 (LOC: Credit Locale de France and Fuji Bank) (a) 4,000,000 4,000,000
MAINE-1.3%
State of Maine, TAN 4.50%, 6/30/95.......................................... 2,500,000 2,519,225
MASSACHUSETTS-1.2%
Massachusetts Bay Transportation Authority, CP
2.45%, Series A, 7/5/94 (LOC; ABN-Amro Bank) (a)........................ 2,300,000 2,300,000
MISSOURI-.8%
Missouri Environmental Improvement and Energy Resource Authority,
PCR, CP (Union Electric Co. Project)
2.30%, Series A, 8/17/94 (LOC; Union Bank of Switzerland) (a)........... 1,500,000 1,500,000
NEVADA-6.9%
Clark County:
IDR, VRDN (Nevada Power Co. Project) 2.80%, Series A (LOC; Societe Generale) (a,b) 3,000,000 3,000,000
PCR, CP (Southern California Edison Project)
3.05%, Series A, 8/2/94 (Guaranteed by; Southern California Edison)... 5,000,000 5,000,000
Washoe County, Water Facility Revenue, CP (Sierra Pacific Power Co. Project)
3.15%, 10/4/94 (LOC; Union Bank of Switzerland) (a)..................... 5,100,000 5,100,000
FIRST PRAIRIE MUNICIPAL MONEY MARKET FUND
(FORMERLY FIRST PRAIRIE TAX EXEMPT MONEY MARKET FUND)-SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1994 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
NEW HAMPSHIRE-2.3%
New Hampshire Business Finance Authority, PCR, Refunding, VRDN
(Public Service New Hampshire Project) 2.40%, Series D (LOC; Barclays Bank) (a,b) $ 3,100,000 $ 3,100,000
New Hampshire Industrial Development Authority, PCR, VRDN
(Connecticut Light and Power Co.) 2.40% (LOC; Union Bank of Switzerland) (a,b) 1,200,000 1,200,000
NEW YORK-1.1%
New York State Energy, Research and Development Authority, PCR
(Electric and Gas Co.) 2.85%, 10/15/94 (LOC; Union Bank of Switzerland) (a) 2,000,000 2,000,000
NORTH CAROLINA-2.7%
Wake County Industrial Facilities and Pollution Control Financing Authority,
Revenue, VRDN (Carolina Power and Light Co. Project)
3.15% (LOC; Sumitomo Bank) (a,b)........................................ 5,100,000 5,100,000
OHIO-13.2%
Allen County, IDR, VRDN (Nickles Bakery Ohio Project)
3.625% (LOC; Mellon Bank) (a,b)......................................... 3,750,000 3,750,000
City of Bedford Heights, IDR, VRDN (Olympic Steel Inc. Project)
3.625% (LOC; Society National Bank) (a,b)............................... 900,000 900,000
Village of Brooklyn Heights, IDR, VRDN (Keynote Office Centre Limited
Partners)
3.625% (LOC; Society National Bank) (a,b)............................... 3,500,000 3,500,000
Cuyahoga County, IDR, VRDN:
(Puritas Association Project) 3.625% (LOC; Society National Bank) (a,b). 2,125,000 2,125,000
(Suburban Pavillion Inc. Project) 3.625% (LOC; Society National Bank) (a,b) 4,450,000 4,450,000
Hancock County, IDR, VRDN (Quality Material Handling Equipment)
3.625% (LOC; Society National Bank) (a,b)............................... 2,300,000 2,300,000
Village of Oakwood, IDR, VRDN (Oakleaf Industrial Mall Project)
3.625% (LOC; Society National Bank) (a,b)............................... 1,800,000 1,800,000
Ohio Water Development Authority, Pollution Control Facilities, PCR, CP
(Duquesne Light) 3%, 7/18/94 (LOC; Toronto-Dominion Bank) (a)........... 3,000,000 3,000,000
Shelbyville, Industrial Building Revenue, VRDN (Ichikoh Manufacturing Inc.
Project)
2.95% (LOC; Industrial Bank of Japan) (a,b)............................. 3,000,000 3,000,000
PENNSYLVANIA-7.6%
Carbon County Industrial Development Authority, RRR, CP (Panther Creek
Partners Project) 2.80%, Series B, 7/6/94 (LOC; National Westminster Bank) (a) 800,000 800,000
Emmaus General Authority, Local Government Revenue, VRDN:
2.35%, Series A-3 (LOC; Hong Kong Shanghai Banking Corp.) (a,b)......... 2,500,000 2,500,000
2.35%, Series G-4 (LOC; Hong Kong Shanghai Banking Corp.) (a,b)......... 5,000,000 5,000,000
City of Philadelphia, CP 2.70%, 7/1/94 (LOC; Fuji Bank) (a)................. 1,000,000 1,000,000
Venango Industrial Development Authority, RRR, Refunding, CP (Scrubgrasss
Project)
2.80%, 7/6/94 (LOC; National Westminster Bank) (a)...................... 5,000,000 5,000,000
SOUTH CAROLINA-1.1%
York County, PCR, Refunding, CP (Duke Power Co. Project):
2.75%, 7/5/94 (Guaranteed by; Duke Power Co.)........................... 1,100,000 1,100,000
2.95%, 10/3/94 (Guaranteed by; Duke Power Co.).......................... 1,000,000 1,000,000
FIRST PRAIRIE MUNICIPAL MONEY MARKET FUND
(FORMERLY FIRST PRAIRIE TAX EXEMPT MONEY MARKET FUND)-SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1994 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
TEXAS-11.6%
Austin County Industrial Development Corp., IDR, CP (Travis and Williamson
Counties
Combined Utilities) 3.35%, 10/4/94 (LOC; Swiss Bank Corp.) (a).......... $ 3,000,000 $ 3,000,000
Brazos Higher Education Authority Inc., Student Loan Revenue:
3.80%, Series B-1, 6/1/95 (LOC; Student Loan Marketing Association) (a). 2,000,000 2,000,000
VRDN 2.40%, Series B (LOC; National Australia Bank) (a,b)............... 3,000,000 3,000,000
Harris County Industrial Development Corp., IDR, VRDN (Zeon Chemicals
Project)
2.95% (LOC; Industrial Bank of Japan) (a,b)............................. 5,850,000 5,850,000
City of Houston, TRAN 4.50%, 6/29/95........................................ 3,000,000 3,025,590
North Texas Higher Education Authority, Inc., Student Loan Revenue, VRDN,
Refunding,
2.50%, (LOC; Fuji Bank) (a,b)........................................... 5,000,000 5,000,000
VIRGINIA-3.9%
Roanoke Industrial Development Authority, HR, VRDN (Roanoke Memorial
Hospitals
Project) 3.30%, Series A (LOC; Morgan Guaranty Trust Co.) (a,b)......... 1,300,000 1,300,000
Virginia Housing Development Authority, Commonwealth Mortgage Revenue
(Series K-Subseries K-Stem) 2.65%, 12/15/94............................. 6,000,000 6,000,000
WASHINGTON-.8%
Student Loan Finance Association, Guaranteed Student Loan Program, Revenue,
VRDN
2.75%, Series A (LOC; National Westminster Bank) (a,b).................. 1,500,000 1,500,000
WISCONSIN-1.9%
Wisconsin Health and Educational Facilities Authority, Revenue, CP
(Alexian Village Milwaukee Inc.):
2.40%, 7/7/94 (LOC; Sumitomo Bank) (a)................................ 1,400,000 1,400,000
2.75%, Series A, 10/3/94 (LOC; Sumitomo Bank) (a)..................... 2,100,000 2,100,000
WYOMING-1.6%
Lincoln County, PCR, CP (Exxon Project)
3.40%, Series A, 12/1/94 (Guaranteed by; Exxon Corp.)................... 2,000,000 2,000,000
Platte County, PCR, VRDN (Tri-State Gas and Electric)
3%, Series B (LOC; Societe Generale) (a,b).............................. 1,000,000 1,000,000
------------
TOTAL INVESTMENTS (cost $188,600,887)....................................... $188,600,887
============
</TABLE>
<TABLE>
<CAPTION>
FIRST PRAIRIE MUNICIPAL MONEY MARKET FUND
(FORMERLY FIRST PRAIRIE TAX EXEMPT MONEY MARKET FUND)-SEE NOTE 1
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
BPA Bond Purchase Agreeement MBIA Municipal Bond Insurance Association
CP Commercial Paper PCR Pollution Control Revenue
EDR Economic Development Revenue RRR Resources Recovery Revenue
EIR Environmental Improvement Revenue SBPA Standby Bond Purchase Agreeement
IDB Industrial Development Board SWDR Solid Waste Disposal Revenue
IDR Industrial Development Revenue TAN Tax Anticipation Notes
HR Hospital Revenue TRAN Tax and Revenue Anticipation Notes
LOC Letter of Credit VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (C) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- --------- -------------------- -----------------------
<S> <C> <C> <C>
F1+/F1 VMIG1/MIG1, P1 (d) SP1+/SP1, A1+/A1 (d) 88.9%
AAA/AA (e) Aaa/Aa (e) AAA/AA (e) 1.1
Not Rated (f) Not Rated (f) Not Rated (f) 10.0
------
100.0%
======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Secured by letters of credit. At June 30, 1994, 82.1% of the Fund's
net assets are backed by letters of credit issued by domestic banks,
foreign banks and Government Agencies.
(b) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest
rates.
(c) Fitch currently provides creditworthiness information for a limited
number of investments.
(d) P1 and A1 are the highest ratings assigned tax-exempt commercial
paper by Moody's and Standard & Poor's, respectively.
(e) Notes which are not F, MIG or SP rated are represented by bond
ratings of the issuers.
(f) Securities which, while not rated by Fitch, Moody's or Standard &
Poor's have been determined by the Fund's Board of Trustees to be of
comparable quality to those rated securities in which the Fund may
invest.
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
FIRST PRAIRIE MUNICIPAL MONEY MARKET FUND
(FORMERLY FIRST PRAIRIE TAX EXEMPT MONEY MARKET FUND)-SEE NOTE 1
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1994 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value-Note 1(a)........................... $188,600,887
Cash.................................................................... 4,244,288
Interest receivable..................................................... 838,563
Prepaid expenses........................................................ 36,753
------------
193,720,491
LIABILITIES:
Due to The First National Bank of Chicago............................... $ 54,408
Due to The Dreyfus Corporation.......................................... 64,962
Payable for investment securities purchased............................. 5,546,294
Accrued expenses........................................................ 55,450 5,721,114
------------ -------------
NET ASSETS ................................................................ $187,999,377
=============
REPRESENTED BY:
Paid-in capital......................................................... $188,017,428
Accumulated net realized (loss) on investments.......................... (18,051)
--------------
NET ASSETS at value applicable to 188,017,428 outstanding shares of
Beneficial Interest, equivalent to $1.00 per share (unlimited number of
$.01 par value shares authorized)....................................... $187,999,377
=============
STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1994 (UNAUDITED)
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 2,580,090
EXPENSES:
Management fee-Note 2(a).............................................. $ 356,188
Administration fee-Note 2(a).......................................... 178,045
Shareholder servicing costs-Note 2(b)................................. 276,521
Professional fees..................................................... 28,218
Custodian fees........................................................ 17,415
Registration fees..................................................... 12,248
Prospectus and shareholders' reports-Note 2(b)........................ 10,612
Trustees' fees and expenses-Note 2(c)................................. 6,358
Miscellaneous......................................................... 17,701
------------
903,306
Less-reduction in investment advisory fee
due to undertakings-Note 2(a)..................................... 255,534
------------
TOTAL EXPENSES.................................................. 647,772
--------------
INVESTMENT INCOME-NET....................................................... 1,932,318
NET REALIZED (LOSS) ON INVESTMENTS-Note 1(b)................................ (980)
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 1,931,338
=============
See independent accountants' review report and notes to financial statements.
FIRST PRAIRIE MUNICIPAL MONEY MARKET FUND
(FORMERLY FIRST PRAIRIE TAX EXEMPT MONEY MARKET FUND)-SEE NOTE 1
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
DECEMBER 31, JUNE 30, 1994
1993 (UNAUDITED)
--------------- -------------------
OPERATIONS:
Investment income-net................................................ $ 3,362,434 $ 1,932,318
Net realized (loss) on investments................................... (2,293) (980)
-------------- --------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............... 3,360,141 1,931,338
-------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net................................................ (3,362,434) (1,932,318)
-------------- --------------
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold........................................ 409,972,617 198,275,061
Dividends reinvested................................................. 1,647,251 1,018,164
Cost of shares redeemed.............................................. (443,919,511) (188,990,802)
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL
INTEREST TRANSACTIONS.......................................... (32,299,643) 10,302,423
-------------- --------------
TOTAL INCREASE (DECREASE) IN NET ASSETS...................... (32,301,936) 10,301,443
-------------- --------------
NET ASSETS:
Beginning of period.................................................. 209,999,870 177,697,934
-------------- --------------
End of period........................................................ $177,697,934 $187,999,377
============ ============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
FIRST PRAIRIE MUNICIPAL MONEY MARKET FUND
(FORMERLY FIRST PRAIRIE TAX EXEMPT MONEY MARKET FUND)-SEE NOTE 1
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
YEAR ENDED DECEMBER 31, SIX MONTHS ENDED
JUNE 30, 1994
--------------------------------------------------
PER SHARE DATA: 1989 1990 1991 1992 1993 (UNAUDITED)
------- ------ ------ ------ ----- ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period... $.9999 $.9999 $.9999 $.9999 $.9999 $.9999
------- ------ ------ ------ ----- ------
INVESTMENT OPERATIONS;
Investment income-net.................. .0580 .0527 .0413 .0236 .0174 .0099
------- ------ ------ ------ ----- ------
DISTRIBUTIONS;
Dividends from investment income-net... (.0580) (.0527) (.0413) (.0236) (.0174) (.0099)
------- ------ ------ ------ ----- ------
Net asset value, end of period......... $.9999 $.9999 $.9999 $.9999 $.9999 $.9999
======= ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN.................... 5.96% 5.40% 4.21% 2.38% 1.75% 2.00%*
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .98% 1.00% .98% .95% .79% .67%*
Ratio of net investment income to average
net assets........................... 5.79% 5.27% 4.11% 2.38% 1.74% 1.99%*
Decrease reflected in above expense ratios due
to undertakings by the Manager....... -- -- -- .01% .16% .26%*
Net Assets, end of period (000's Omitted) $158,515 $176,009 $233,675 $210,000 $177,698 $187,999
- -------------------
* Annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
FIRST PRAIRIE MUNICIPAL MONEY MARKET FUND
(FORMERLY FIRST PRAIRIE TAX EXEMPT MONEY MARKET FUND)-SEE NOTE 1
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a diversified open-end management investment company. The First National
Bank of Chicago ("Manager") serves as the Fund's investment adviser. The
Dreyfus Corporation ("Dreyfus") provides certain administrative services to
the Fund-see Note 2(a). Dreyfus Service Corporation ("Distributor"), a
wholly-owned subsidiary of Dreyfus, acts as the distributor of the Fund's
shares, which are sold without a sales load.
It is the Fund's policy to maintain a continuous net asset value per
share of $1.00; the Fund has adopted certain investment, portfolio valuation
and dividend and distribution policies to enable it to do so.
Effective February 1, 1994, the Fund changed its name from "First Prairie
Tax Exempt Money Market" to "First Prairie Municipal Money Market."
(A) PORTFOLIO VALUATION: Investments are valued at amortized cost, which
has been determined by the Fund's Board of Trustees to represent the fair
value of the Fund's investments.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Interest income, adjusted
for amortization of premiums and, when appropriate, discounts on investments,
is earned from settlement date and recognized on the accrual basis. Realized
gain and loss from securities transactions are recorded on the identified
cost basis.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain, if any, are normally declared and
paid annually, but the Fund may make distributions on a more frequent basis
to comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income taxes.
The Fund has an unused capital loss carryover of approximately $17,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to December 31, 1993. If not
applied, $14,000 of the carryover expires in 1994, $1,000 expires in 1999 and
$2,000 expires in 2001.
At June 30, 1994, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see
the Statement of Investments).
NOTE 2-INVESTMENT ADVISORY FEE, ADMINISTRATION FEE AND OTHER TRANSACTIONS WITH
AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .55 of 1% of the average
daily value of the Fund's net assets and is payable monthly. The Agreement
further provides that if in any full fiscal year the aggregate expenses of
FIRST PRAIRIE MUNICIPAL MONEY MARKET FUND
(FORMERLY FIRST PRAIRIE TAX EXEMPT MONEY MARKET FUND)-SEE NOTE 1
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
the Fund exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Fund, the Fund may deduct from the payments to be made
to the Manager, or the Manager will bear such excess to the extent required
by state law. The most stringent state expense limitation applicable to the
Fund presently requires reimbursement of expenses in any full year that such
expenses (exclusive of distribution expenses and certain expenses as
described above) exceed 2 1/2% of the first $30 million, 2% of the next $70
million and 1 1/2% of the excess over $100 million of the average value of
the Fund's net assets in accordance with California "blue sky" regulations.
However, the Manager has undertaken from January 1, 1994 through April 25,
1994 to reduce the management fee paid by the Fund to the extent that the
Fund's aggregate expenses (excluding certain expenses as described above)
exceeded specified annual percentages of the Fund's average daily net assets.
The Manager has currently undertaken from April 26, 1994 to assume all
expenses of the Fund in excess of an annual rate of .70 of 1% of the Fund's
average daily net assets. The reduction in management fee, pursuant to the
undertakings, amounted to $255,534 for the six months ended June 30, 1994.
The undertaking may be modified by the Manager from time to time,
provided that the resulting expense reimbursement would not be less than the
amount required pursuant to the Agreement.
The Manager has engaged Dreyfus to assist it in providing certain
administrative services for the Fund pursuant to a Master Administration
Agreement between the Manager and Dreyfus. Pursuant to its agreement with
Dreyfus, the Manager has agreed to pay Dreyfus for Dreyfus' services.
(b) The Fund has adopted a Service Plan (the "Plan") pursuant to which it
has agreed to pay costs and expenses in connection with advertising and
marketing shares of the Fund and payments made to one or more Service Agents
(which may include the Manager, Dreyfus and the Distributor) based on the
value of the Fund's shares owned by clients of the Service Agent. These
advertising and marketing expenses and fees of the Service Agents may not
exceed an annual rate of .25 of 1% of the Fund's average daily net assets.
The Plan also separately provides for the Fund to bear the costs of
preparing, printing and distributing certain of the Fund's prospectuses and
statements of additional information and costs associated with implementing
and operating the Plan, not to exceed the greater of $100,000 or .005 of 1%
of the Fund's average daily net assets for any full year. For the six months
ended June 30, 1994, the Fund was charged $249,080 pursuant to the Plan,
substantially all of which was retained by the Manager and Dreyfus.
(C) Certain officers and trustees of the Fund are "affiliated persons,"
as defined in the Act, of the Manager or Dreyfus. Each trustee who is not an
"affiliated person" receives an annual fee of $2,500 and an attendance fee of
$500 per meeting.
(D) On December 5, 1993, Dreyfus entered into an Agreement and Plan of
Merger (the "Merger Agreement") providing for the merger of Dreyfus with a
subsidiary of Mellon Bank Corporation ("Mellon").
Following the merger, it is planned that Dreyfus will be a direct
subsidiary of Mellon Bank, N.A. Closing of this merger is subject to a number
of contingencies, including receipt of certain regulatory approvals and
approvals of the stockholders of Dreyfus and of Mellon. The merger is
expected to occur in August 1994, but could occur later.
FIRST PRAIRIE
MUNICIPAL MONEY MARKET FUND
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
Investment Adviser
THE FIRST NATIONAL BANK
OF CHICAGO
Three First National Plaza
Chicago, IL 60670
Custodian
THE BANK OF NEW YORK
110 Washington Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
THE SHAREHOLDER SERVICES
GROUP, INC.
P.O. Box 9671
Providence, RI 02940
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 369SA946
FIRST
PRAIRIE
MUNICIPAL
MONEY MARKET
FUND
Semi-Annual Report
June 30, 1994
