LETTER TO SHAREHOLDERS
Dear Shareholder:
The yield for the First Prairie Municipal Money Market Fund was 2.34% for
the one-year period ended December 31, 1994. After taking into account the
effect of compounding, the effective yield was 2.36%.* Income dividends of
approximately $.02 per share paid during the period were exempt from Federal
income tax.**
The Federal Reserve Board has been unflinching in its determination to
quash incipient inflationary pressures in the U.S. economy. Toward that end,
its campaign of increasing short-term rates continued throughout the year.
During the calendar year 1994, the Fed increased the Federal Funds rate by
2.50%. This, of course, put pressure on other short-term rates, with the
yield on the three-month Treasury bill increasing 2.66% during the year.
We initially had our doubts about both the Fed's determination to take
the actions necessary to head off inflation and the willingness of Congress
and the executive branch to accede to such actions. However, both the Fed's
rhetoric and its actions have proven that it will do whatever is necessary to
maintain the purchasing power of the dollar; indeed, it has even expressed
its intention to do whatever it can to prevent the economy from growing at a
rate which it feels is not compatible with price stability. Chairman Alan
Greenspan's traditional gradualist approach has been abandoned in the
anti-inflation crusade. Furthermore, protests from Congress and the
Administration about the Fed's action have been few and muted.
The economy continues to grow at a rate that the Fed deems unacceptable.
Capacity utilization is very high, and the falling unemployment rate makes
the Fed nervous. Key commodity prices are increasing at double-digit rates.
The dollar remains under pressure. Therefore, we feel that we have not seen
the end of this latest round of Fed tightening.
We currently plan to keep our maturities short in order to take the
fullest possible advantage of the increasing rate environment. We do not
believe investing long makes sense at a time when the probability of
increasing interest rates is very high. We also plan to concentrate our
investments in high quality, liquid securities which will afford us the
maximum amount of agility in executing our strategy.
Pursuant to the approval of the Fund's shareholders at a meeting held in
January 1995, a transfer of the Fund's assets to the Municipal Money Market
Fund of the newly formed Prairie Funds is anticipated to occur in May 1995.
We thank you for the confidence that you have expressed in us by
investing in our Fund. We plan to continue to earn your trust by pursuing a
strategy which will seek to provide the highest yield exempt from Federal
income tax as is consistent with protecting the value of your principal.
Sincerely,
(Mark M. Quinn Signature Logo)
Mark M. Quinn
Managing Director, Fixed Income
First Prairie Funds
January 25, 1995
New York, N.Y.
* 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 DECEMBER 31, 1994
PRINCIPAL
TAX EXEMPT INVESTMENTS--100.0% AMOUNT VALUE
-------------- --------------
<S> <C> <C>
ALABAMA--3.9%
City of Phenix, IDB, EIR, CP (Mead Coated Board Project):
3.55%, 1/5/95 (LOC; ABN-Amro Bank) (a).................................. $ 4,000,000 $ 4,000,000
3.65%, 2/8/95 (LOC; ABN-Amro Bank) (a).................................. 2,500,000 2,500,000
ALASKA--3.1%
City of Valdez, Marine Terminal Revenue, Refunding, CP (Arco Transportation
Project)
3.60%, Series A, 2/1/95 (LOC; Atlantic Richfield Co.) (a)............... 5,200,000 5,200,000
COLORADO--3.6%
Colorado Student Obligation Bond Authority, Student Loan Revenue, VRDN:
5.05%, Series A (LOC; Student Loan Marketing Association) (a,b)......... 4,000,000 4,000,000
5.05%, Series B (LOC; Student Loan Marketing Association) (a,b)......... 2,000,000 2,000,000
CONNECTICUT--1.2%
State of Connecticut Special Assessment Unemployment Compensation Advanced
Fund,
Revenue (Connecticut Unemployment) 3.80%, Series C, 7/1/95 (Insured; FGIC) 2,000,000 2,000,962
DISTRICT OF COLUMBIA--1.2%
District of Columbia, Revenue (Supplemental Student Loan-Consern)
4.05%, 7/1/95 (LOC; Mitsubishi Bank) (a)................................ 2,000,000 2,000,000
FLORIDA--1.2%
Sarasota County Public Hospital District, HR, CP (Sarasota Memorial Hospital
Project)
3.60%, Series B, 1/4/95 (LOC; Sumitomo Bank) (a,b)...................... 2,000,000 2,000,000
GEORGIA--4.6%
Burke County Development Authority, PCR (Oglethorpe Power Corp.-Vogtle):
CP 4%, 1/11/95 (LOC; Credit Suisse) (a)................................. 2,000,000 2,000,000
VRDN 4.95%, Series A (Insured; FGIC) (b)................................ 5,600,000 5,600,000
ILLINOIS--6.1%
Illinois Development Finance Authority:
IDR, VRDN (Mattoon Precsion Manufacturing Project)
5.85% (LOC; Industrial Bank of Japan) (a,b)........................... 2,500,000 2,500,000
PCR, Refunding, CP (Illinois Power Co. Project)
3.75%, Series A, 1/9/95 (LOC; Canadian Imperial Bank of Commerce) (a). 1,000,000 1,000,000
Illinois Health Facilities Authority, HR, VRDN (Sisters Services)
5.50%, Series E (Insured; MBIA)......................................... 2,000,000 2,000,000
Southwestern Development Authority, SWDR, VRDN (Shell Oil Co. Project)
4.95% (LOC; Shell Oil Co.) (a,b)........................................ 4,600,000 4,600,000
INDIANA--9.7%
Indiana Development Finance Authority, SWDR, CP (Pure Air On Lake Project):
3.60%, 1/4/95 (LOC; Fuji Bank) (a)...................................... 3,000,000 3,000,000
FIRST PRAIRIE MUNICIPAL MONEY MARKET FUND
(FORMERLY FIRST PRAIRIE TAX EXEMPT MONEY MARKET FUND)--SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
INDIANA (CONTINUED)
Indiana Development Finance Authority, SWDR, CP (Pure Air On Lake Project)
(continued):
3.90%, Series A, 1/11/95 (LOC; Fuji Bank) (a)........................... $ 3,000,000 $ 3,000,000
City of Indianapolis, RRR, VRDN (Ogden Martin Systems)
4.95% (LOC; Swiss Bank Corp.) (a,b)..................................... 3,000,000 3,000,000
Jasper County, PCR, CP (Northern Indiana Public Service Co):
4.20%, 1/11/95 (LOC; Barclays Bank) (a)................................. 3,000,000 3,000,000
3.70%, Series A, 1/12/95 (LOC; Barclays Bank) (a)....................... 1,350,000 1,350,000
City of Seymour, EDR, VRDN (Kobello Metal Pouder)
5.85% (LOC; Industrial Bank of Japan) (a,b)............................. 2,700,000 2,700,000
IOWA--1.8%
Iowa School Corp., Warrant Certificates, Revenue
(Iowa School Cash Anticipation Program) 4.25%, Series A, 7/17/95........ 3,000,000 3,010,138
KANSAS--3.4%
Butler County, Solid Waste Disposal Facilities Revenue, VRDN
(Texaco Refining and Marketing) 5%, Series A (LOC; Texaco Inc.) (a,b)... 5,600,000 5,600,000
KENTUCKY--4.5%
City of Bowling Green, Industrial Building Revenue, VRDN:
(Bando Manufacturing America Project) 5.85% (LOC; Industrial Bank of Japan) (a,b) 1,000,000 1,000,000
(Town Fastener Inc. Project) 5.85% (LOC; Industrial Bank of Japan) (a,b) 2,400,000 2,400,000
Daviess County, Solid Waste Disposal Facilities Revenue, VRDN (Scott Paper
Co. Project)
4.95%, Series A (LOC; Morgan Guaranty Trust Co.) (a,b).................. 3,000,000 3,000,000
City of Walton, IDR, VRDN (Namco Inc. Project)
5.85% (LOC; Industrial Bank of Japan) (a,b)............................. 1,000,000 1,000,000
LOUISIANA--2.4%
State of Louisiana, CP, Refunding
3.40%, Series A, 2/15/95 (LOC: Credit Locale de France and Fuji Bank) (a) 4,000,000 4,000,000
MAINE--1.5%
State of Maine, TAN 4.50%, 6/30/95.......................................... 2,500,000 2,509,507
MARYLAND--1.2%
Northeast Waste Disposal Authority, RRR, Refunding, VRDN (Hartford County)
4.90% (BPA; Credit Locale and Insured; AMBAC) (b)....................... 2,000,000 2,000,000
MICHIGAN--3.0%
Michigan Hospital Finance Authority, VRDN:
HR, Refunding (Mount Clemens Hospital) 5.65% (LOC; Comerica Bank) (a,b). 2,000,000 2,000,000
Revenue (Hospital Equipment Loan Program)
5.60% (LOC; First of America Bank) (a,b).............................. 2,900,000 2,900,000
FIRST PRAIRIE MUNICIPAL MONEY MARKET FUND
(FORMERLY FIRST PRAIRIE TAX EXEMPT MONEY MARKET FUND)--SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
MISSOURI--1.3%
Columbia, Special Obligation, VRDN 5%, Series A (LOC; Toronto-Dominion Bank) (a,b) $ 2,200,000 $ 2,200,000
NEVADA--6.7%
Clark County, PCR, CP (Southern California Edison Project)
3.65%, Series A, 1/3/95 (LOC; Southern California Edison) (a)........... 5,000,000 5,000,000
Washoe County, Water Facility Revenue, CP (Sierra Pacific Power Co. Project):
3.60%, 1/4/95 (LOC; Union Bank of Switzerland) (a)...................... 1,000,000 1,000,000
3.65%, 1/12/95 (LOC; Union Bank of Switzerland) (a)..................... 5,100,000 5,100,000
NEW HAMPSHIRE--.7%
New Hampshire Industrial Development Authority, PCR, VRDN
(Connecticut Light and Power Co.) 5.80% (LOC; Union Bank of Switzerland) (a,b) 1,100,000 1,100,000
NORTH CAROLINA--1.6%
Wake County Industrial Facilities and Pollution Control Financing Authority,
Revenue
CP (Carolina Power and Light Co. Project) 3.70%, 2/14/95 (LOC; Fuji Bank) (a) 2,700,000 2,700,000
OREGON--2.1%
State of Oregon, VRDN (Veteran Welfare Bond) 4.95% (LOC; Mitsubishi Bank) (a,b) 3,400,000 3,400,000
PENNSYLVANIA--3.0%
Carbon County Industrial Development Authority, RRR, CP (Panther Creek
Partners Project) 3.65%, Series A, 1/3/95 (LOC; National Westminster Bank) (a) 1,000,000 1,000,000
Venango Industrial Development Authority, RRR, CP (Scrubgrasss Project)
3.80%, 2/1/95 (LOC; National Westminster Bank) (a)...................... 4,000,000 4,000,000
RHODE ISLAND--1.8%
Providence Off State Public Packaging Corp., Exempt Facilities Revenue, VRDN
(Washington Street Garage Corp. Project)
5.75% (LOC; Morgan Guaranty Trust Co.) (a,b)............................ 3,000,000 3,000,000
TENNESSEE--4.5%
Memphis-Shelby County Airport Authority, Revenue, CP
4.35%, 4/6/95 (LOC; Canadian Imperial Bank of Commerce) (a)............. 2,405,000 2,405,000
Metro Government of Nashville and Davidson Counties, Facilities Board
Revenue, CP
(Vanderbilt University) 3.75%, 1/9/95 (BPA; Vanderbilt University)...... 5,000,000 5,000,000
TEXAS--17.6%
Austin County Industrial Development Corp., IDR, CP
(Travis and Williamson Counties Combined Utilities):
3.60%, 1/4/95 (LOC; Swiss Bank Corp.) (a)............................. 3,000,000 3,000,000
3.45%, 1/18/95 (LOC; Swiss Bank Corp.) (a)............................ 2,800,000 2,800,000
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
FIRST PRAIRIE MUNICIPAL MONEY MARKET FUND
(FORMERLY FIRST PRAIRIE TAX EXEMPT MONEY MARKET FUND)--SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
TEXAS (CONTINUED)
Brazos River Authority, PCR, Refunding, CP (Texas Utilities Co. Project)
3.70%, 2/9/95 (LOC; Canadian Imperial Bank of Commerce) (a)............. $ 3,000,000 $ 3,000,000
Calhoun County Industrial Development Authority, Port Revenue, VRDN
(Formosa Plastics Corp.) 7% (LOC; Bank of America) (a,b)................ 2,000,000 2,000,000
Capital Health Facilities Development Corp., Health Facilities Revenue, VRDN
(Island on Lake Travis) 5.10% (LOC; Credit Suisse) (a,b)................ 3,900,000 3,900,000
Dallas-Fort Worth Regional Airport Revenue, Joint Revenue, Refunding, CP
3.60%, 2/1/95 (LOC; National Westminster Bank) (a)...................... 1,000,000 1,000,000
Gulf Coast Industrial Development Authority, SWDR, VRDN
(Citgo Petroleum Corp. Project) 5% (LOC; Wachovia Bank of Georgia) (a,b) 7,000,000 7,000,000
Port of Port Arthur Naval District, PCR, VRDN (Star Enterprises Project)
5.75% (LOC; Swiss Bank Corp.) (a,b)..................................... 4,400,000 4,400,000
VIRGINIA--.8%
Peninsula Ports Authority, Coal Terminal Revenue, Refunding, VRDN
(Dominion Terminal Project) 4.75%, Series D (LOC; Barclays Bank) (a,b).. 1,240,000 1,240,000
WASHINGTON--1.7%
Port of Vancouver, Revenue, VRDN (United Grain Ore)
5.10% (LOC; Sumitomo Bank) (a,b)........................................ 2,800,000 2,800,000
WEST VIRGINIA--1.2%
West Virginia Hospital Finance Authority, HR, VRDN (Saint Mary's Hospital
Project)
5.55% (LOC; Mitsubishi Bank) (a,b)...................................... 2,000,000 2,000,000
WISCONSIN--1.3%
Wisconsin Health and Educational Facilities Authority, Revenue, CP
(Alexian Village Milwaukee Inc.) 3.75%, 2/8/95 (LOC; Sumitomo Bank) (a). 2,100,000 2,100,000
WYOMING--3.3%
Lincoln County, PCR, CP (Exxon Project)
3.80%, Series A, 1/30/95 (Guaranteed by; Exxon Corp.)................... 5,500,000 5,500,000
-------------
TOTAL INVESTMENTS (cost $165,515,607)....................................... $165,515,607
=============
</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>
AMBAC American Municipal Bond Assurance Corporation IDR Industrial Development Revenue
BPA Bond Purchase Agreement LOC Letter of Credit
CP Commercial Paper MBIA Municipal Bond Investors Assurance
EDR Economic Development Revenue PCR Pollution Control Revenue
EIR Environment Improvement Revenue RRR Resources Recovery Revenue
FGIC Financial Guaranty Insurance Company SWDR Solid Waste Disposal Revenue
HR Hospital Revenue TAN Tax Anticipation Notes
IDB Industrial Development Board VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- -------------------- ----------------------
<S> <C> <C>
VMIG1/MIG1, P1 (c) SP1+/SP1, A1+/A1 (c) 100.0%
=======
</TABLE>
NOTES TO STATEMENT OF INVESTMENT:
(a) Secured by letters of credit. At December 31, 1994, 79.6% of the
Fund's net assets are backed by letters of credit issued by domestic
banks, foreign banks, Government Agencies and Corporations.
(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) P1 and A1 are the highest ratings assigned tax-exempt commercial
paper by Moody's and Standard & Poor's, respectively.
See 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 DECEMBER 31, 1994
ASSETS:
<S> <C> <C>
Investments in securities, at value_Note 1(a)........................... $165,515,607
Cash.................................................................... 2,878,018
Receivable for investment securities sold............................... 4,080,920
Interest receivable..................................................... 877,539
Prepaid expenses........................................................ 33,510
--------------
173,385,594
LIABILITIES:
Due to The First National Bank of Chicago............................... $80,415
Due to The Dreyfus Corporation.......................................... 97,284
Accrued expenses........................................................ 77,863 255,562
-------- --------------
NET ASSETS ................................................................ $173,130,032
==============
REPRESENTED BY:
Paid-in capital......................................................... $173,170,062
Accumulated net realized (loss) on investments.......................... (40,030)
--------------
NET ASSETS at value applicable to 173,183,640 shares outstanding (unlimited
number of $.01 par value shares of Beneficial Interest authorized)...... $173,130,032
==============
NET ASSET VALUE, offering and redemption price per share
($173,130,032 / 173,183,640 shares)..................................... $1.00
======
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
FIRST PRAIRIE MUNICIPAL MONEY MARKET FUND
(FORMERLY FIRST PRAIRIE TAX EXEMPT MONEY MARKET FUND)--SEE NOTE 1
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1994
INVESTMENT INCOME:
<S> <C> <C>
INTEREST INCOME......................................................... $5,853,085
EXPENSES:
Management fee_Note 2(a).............................................. $1,069,636
Shareholder servicing costs_Note 2(b)................................. 551,662
Professional fees..................................................... 60,273
Custodian fees........................................................ 33,583
Registration fees..................................................... 28,368
Prospectus and shareholders' reports_Note 2(b)........................ 26,815
Trustees' fees and expenses_Note 2(c)................................. 13,108
Miscellaneous......................................................... 31,736
------------
1,815,181
Less_reduction in management fee
due to undertakings_Note 2(a)..................................... 485,987
------------
TOTAL EXPENSES.................................................. 1,329,194
------------
INVESTMENT INCOME--NET...................................................... 4,523,891
NET REALIZED (LOSS) ON INVESTMENTS--Note 1(b)............................... (36,537)
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $4,487,354
===========
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
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 DECEMBER 31,
-----------------------------
1993 1994
-------------- --------------
<S> <C> <C>
OPERATIONS:
Investment income_net................................................... $ 3,362,434 $ 4,523,891
Net realized (loss) on investments...................................... (2,293) (36,537)
-------------- --------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 3,360,141 4,487,354
-------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income_net................................................... (3,362,434) (4,523,891)
-------------- --------------
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold........................................... 409,972,617 428,067,086
Dividends reinvested.................................................... 1,647,251 2,261,400
Cost of shares redeemed................................................. (443,919,511) (434,859,851)
-------------- --------------
(DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS........ (32,299,643) (4,531,365)
-------------- --------------
TOTAL (DECREASE) IN NET ASSETS.................................... (32,301,936) (4,567,902)
-------------- --------------
NET ASSETS:
Beginning of year....................................................... 209,999,870 177,697,934
-------------- --------------
End of year............................................................. $177,697,934 $173,130,032
============== ==============
See 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 year indicated. This
information has been derived from the Fund's financial statements.
YEAR ENDED DECEMBER 31,
------------------------------------------------------
PER SHARE DATA: 1990 1991 1992 1993 1994
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $.9999 $.9999 $.9999 $.9999 $.9999
------ ------ ------ ------ ------
INVESTMENT OPERATIONS;
Investment income_net........................ .0527 .0413 .0236 .0174 .0234
Net realized (loss) on investments........... -- -- -- -- (.0002)
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS........... .0527 .0413 .0236 .0174 .0232
------ ------ ------ ------ ------
DISTRIBUTIONS;
Dividends from investment income_net......... (.0527) (.0413) (.0236) (.0174) (.0234)
------ ------ ------ ------ ------
Net asset value, end of year................. $.9999 $.9999 $.9999 $.9999 $.9997
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN.......................... 5.40% 4.21% 2.38% 1.75% 2.36%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... 1.00% .98% .95% .79% .68%
Ratio of net investment income to average net assets 5.27% 4.11% 2.38% 1.74% 2.33%
Decrease reflected in above expense ratios due to
undertakings by the Manager................ -- -- .01% .16% .25%
Net Assets, end of year (000's Omitted)...... $176,009 $233,675 $210,000 $177,698 $173,130
See 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
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, until August 24, 1994, a
wholly-owned subsidiary of Dreyfus, acted as the distributor of the Fund's
shares, which are sold without a sales load. Effective August 24, 1994, the
Manager became a direct subsidiary of Mellon Bank, N.A.
On August 24, 1994, Premier Mutual Fund Services, Inc. (the
"Distributor") was engaged as the Fund's distributor. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of Institutional Administration Services, Inc., a provider of
mutual fund administration services, the parent company of which is Boston
Institutional Group, Inc.
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. There is no
assurance, however, that the Fund will be able to maintain a stable net asset
value of $1.00.
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 original issue 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 and
excise taxes.
The Fund has an unused capital loss carryover of approximately $4,000
available for Federal income tax purposes to be applied against future net
securities profits, if any realized subsequent to December 31, 1994. The
carryover does not include net realized securities losses from November 1,
1994 through December 31, 1994 which are treated, for Federal income tax
purposes, as arising in fiscal 1995. If not applied, $1,000 of the carryover
expires in 1999, $2,000 expires in 2001 and $1,000 expires in 2002. As a
result of the expiration of a prior year capital loss carryover $13,578 was
reclassified from accumulated net realized loss to additional paid in
capital.
FIRST PRAIRIE MUNICIPAL MONEY MARKET FUND
(FORMERLY FIRST PRAIRIE TAX EXEMPT MONEY MARKET FUND)--SEE NOTE 1
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
At December 31, 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
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 $485,987 for the year ended December 31, 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 year ended
December 31, 1994, the Fund was charged $504,645 pursuant to the Plan,
substantially all of which was retained by the Manager and Dreyfus.
(C) Prior to August 24, 1994, certain officers and trustees of the Fund
were "affiliated persons," as defined in the Act, of the Manager or Dreyfus
Service Corporation. Each trustee who is not an "affiliated person" receives
an annual fee of $2,500 and an attendance fee of $500 per meeting.
FIRST PRAIRIE MUNICIPAL MONEY MARKET FUND
(FORMERLY FIRST PRAIRIE TAX EXEMPT MONEY MARKET FUND)--SEE NOTE 1
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 3--SUBSEQUENT EVENTS:
As of January 1, 1995, the Fund's investment adviser is First Chicago
Investment Management Company ("FCIMCO"), a newly formed registered
investment adviser and a wholly-owned subsidiary of The First National Bank
of Chicago. Effective January 17, 1995, the Fund entered into a new
administration agreement with FCIMCO. In addition, effective January 17,
1995, FCIMCO entered into a master sub-administration agreement with Concord
Holding Corporation ("Concord") pursuant to which FCIMCO will pay Concord a
portion of its administration fee in consideration of Concord's providing
administrative services to the Fund. The Fund has agreed to pay FCIMCO a
monthly advisory and administration fee at the annual rate of .40% and .15%,
respectively, of the value of the Fund's average daily net assets.
The Fund has entered into a new distribution agreement with Concord Financial
Group, Inc., a wholly-owned subsidiary of Concord which is effective
January 17, 1995.
FIRST PRAIRIE MUNICIPAL MONEY MARKET FUND
(FORMERLY FIRST PRAIRIE TAX EXEMPT MONEY MARKET FUND)--SEE NOTE 1
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
FIRST PRAIRIE MUNICIPAL MONEY MARKET FUND
We have audited the accompanying statement of assets and liabilities of
First Prairie Municipal Money Market Fund, including the statement of
investments, as of December 31, 1994, and the related statement of operations
for the year then ended, the statement of changes in net assets for each of
the two years in the period then ended, and financial highlights for each of
the years indicated therein. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial
highlights based on our audits.
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. Our procedures included confirmation of
securities owned as of December 31, 1994 by correspondence with the custodian.
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 First Prairie Municipal Money Market Fund, at December 31, 1994,
the results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the indicated years, in conformity with generally
accepted accounting principles.
(Ernst & Young LLP Signature Logo)
New York, New York
February 3, 1995
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby designates all the
dividends paid from investment income-net during the fiscal year ended
December 31, 1994 as "exempt-interest dividends" (not subject to regular
Federal income tax).
FIRST PRAIRIE
MUNICIPAL MONEY MARKET FUND
200 PARK AVENUE
NEW YORK, NY 10166
INVESTMENT ADVISER
THE FIRST NATIONAL BANK
OF CHICAGO
THREE FIRST NATIONAL PLAZA
CHICAGO, IL 60670
CUSTODIAN
THE BANK OF NEW YORK
90 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. 369AR9412
FIRST
(First Prairie Logo)
PRAIRIE
MUNICIPAL
MONEY MARKET
FUND
ANNUAL REPORT
DECEMBER 31, 1994
