PRESIDENT'S LETTER
Dear Shareholder:
We are pleased to report to you on the activities of the First Prairie
Money Market Fund, Money Market Series and Government Series for the
fiscal year ended December 31, 1993.
The yield for the Money Market Series for the 12-month period ended
December 31, 1993 was 2.74%. After taking into account the effect of
compounding, the effective yield was 2.77%.*
For the Government Series, the yield was 2.49% for the year ended
December 31, 1993, and the effective yield was 2.52%.
There was a small uptick in the final three months of the year for the
Government Series, with a yield during that period of 2.55%, or 2.58%
after compounding. In the case of the Money Market Series, the final three
months saw a small decline with a yield of 2.70%, or 2.73% after
compounding for that period.
ECONOMIC OUTLOOK
The Federal Reserve Board has been able to accommodate economic
growth through its easy monetary policy throughout 1993. Additionally,
recent data confirm the U.S. economy gained momentum during the fourth
quarter of the year. There still exist, however, some important factors
which could keep the expansion moderate, rather than overly robust.
Among these are the President's restrictive fiscal policies, companies
continuing to announce job layoffs, the downsizing of the defense
industry, and the uncertain effects of potential health-care legislation.
FEDERAL CREDIT TIGHTENING FORECAST
It is management's current belief that the Fed will tighten credit
slightly during the first half of 1994 - more likely during the second
quarter, rather than the first. Although inflation data have been favorable,
the Fed will want to reinforce confidence in the fixed-income market that
it remains committed to combatting inflation. By acting later in the first
half of the year, the Federal Reserve will be better able to determine if
the fourth quarter momentum of 1993 will continue throughout 1994.
Consequently, management currently intends to keep the average maturity
of your Fund in the 40-60 day range in anticipation of slowly rising
interest rates.
TRIPLE-'A' RATING
As of December 21, 1993, the Fund was assigned a Aaa rating from
Moody's Investors Service, Inc. Subsequently, the Fund's management
chose to withdraw the previous rating from Standard & Poor's
Corporation, which was also triple `A'. The Moody's rating allows your
Fund additional investment opportunities while still maintaining the
superior quality of a triple-'A' rated fund.
We would like to take this opportunity to renew our commitment to
serving your investment needs.
Sincerely,
Joseph S. DiMartino
President
January 19, 1994
New York, N.Y.
* Effective yield is based upon dividends declared daily and reinvested
monthly.
<TABLE>
<CAPTION>
FIRST PRAIRIE MONEY MARKET FUND, MONEY MARKET SERIES
STATEMENT OF INVESTMENTS DECEMBER 31, 1993
PRINCIPAL
NEGOTIABLE BANK CERTIFICATES OF DEPOSIT-3.1% AMOUNT VALUE
------------ ------------
<S> <C> <C> <C>
Sanwa Bank Ltd.(Yankee)
3.31%, 1/7/1994
(cost $5,000,000).......................................................... $ 5,000,000 $ 5,000,000
============
COMMERCIAL PAPER-34.9%
Bridgestone/Firestone Inc.
3.36%, 1/21/1994 (a)....................................................... $ 7,925,000 $ 7,910,251
Cogentrix of Richmond Inc.
3.35%, 1/12/1994 (a)....................................................... 6,202,000 6,195,652
Goldman Sachs Group L.P.
3.31%, 1/21/1994........................................................... 7,000,000 6,987,167
Morgan Stanley Group Inc.
3.35%, 1/27/1994........................................................... 6,000,000 5,985,527
N.S. Finance Inc.
3.36%, 1/10/1994 (a)....................................................... 5,700,000 5,695,226
New Center Asset Trust
3.39%, 2/7/1994............................................................ 7,000,000 7,000,000
Nichimen America Inc.
3.36%, 1/18/1994 (a)....................................................... 6,000,000 5,990,508
Pepsico Inc.
3.19%, 1/28/1994........................................................... 3,000,000 2,992,845
Pitney Bowes Credit Corp.
3.35%, 1/11/1994........................................................... 3,000,000 2,997,208
SRD Finance Inc.
3.35%, 2/1/1994 (a)........................................................ 5,000,000 4,985,663
------------
TOTAL COMMERCIAL PAPER (cost $56,740,047)...................................... $ 56,740,047
============
CORPORATE NOTES-1.5%
Merrill Lynch & Co. Inc. (b)
3.27%, 6/7/1994
(cost $2,500,000).......................................................... $ 2,500,000 $ 2,500,000
============
SHORT-TERM BANK NOTES-3.1%
NationsBank of North Carolina NA
3.52%, 8/18/1994
(cost $4,999,375).......................................................... $ 5,000,000 $ 4,999,375
============
U.S. TREASURY BILLS-4.7%
3.57%, 12/15/1994
(cost $7,733,587).......................................................... $ 8,000,000 $ 7,733,587
============
U.S. GOVERNMENT AGENCIES-44.4%
Federal Home Loan Banks
Floating Rate Notes
3.55%, 7/6/1995(c)............................................................ $ 25,000,000 $ 25,000,000
4.29%, 4/7/2000(b)............................................................ 10,000,000 10,000,000
Federal Home Loan Mortgage Corp.
Floating Rate Notes (b)
5.00%, 3/22/2000........................................................... 5,000,000 5,000,000
Small Business Administration
Individual Loan Certificates (b)
4.67%, 5/15/1997........................................................... 57,052 57,052
4.67%, 7/15/1997........................................................... 67,114 67,114
4.66%, 6/15/2000........................................................... 74,398 74,398
FIRST PRAIRIE MONEY MARKET FUND, MONEY MARKET SERIES
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1993
PRINCIPAL
U.S. GOVERNMENT AGENCIES (CONTINUED) AMOUNT VALUE
------------ ------------
Small Business Administration (continued)
Individual Loan Certificates (b) (continued)
4.65%, 7/15/2000........................................................... $ 199,460 $ 199,460
4.59%, 11/15/2000.......................................................... 176,915 176,915
4.68%, 12/15/2001.......................................................... 93,801 93,801
4.54%, 6/15/2002........................................................... 92,151 92,151
4.68%, 6/15/2003........................................................... 131,306 131,306
4.64%, 10/15/2004.......................................................... 360,667 360,667
4.67%, 11/15/2004.......................................................... 216,337 216,337
4.72%, 4/15/2009........................................................... 420,528 420,528
4.67%, 7/15/2010........................................................... 434,420 434,420
4.66%, 10/15/2010.......................................................... 688,906 688,906
4.75%, 8/15/2012........................................................... 459,573 459,573
4.76%, 1/15/2013........................................................... 452,128 452,128
4.65%, 8/15/2013........................................................... 280,830 280,830
4.68%, 1/15/2014........................................................... 512,421 512,421
4.76%, 4/15/2014........................................................... 232,165 232,165
4.80%, 4/15/2014........................................................... 296,052 296,052
4.66%, 12/15/2014.......................................................... 38,524 38,524
4.80%, 12/15/2014.......................................................... 133,377 133,377
4.65%, 7/15/2015........................................................... 586,883 586,883
4.64%, 9/15/2015........................................................... 125,566 125,566
Small Business Administration
Pool Certificates (b)
4.72%, 9/25/1995........................................................... 65,676 65,676
4.49%, 4/25/1996........................................................... 91,208 91,208
4.80%, 5/25/1999........................................................... 178,047 178,047
4.67%, 3/25/2000........................................................... 497,799 497,799
4.67%, 1/25/2001........................................................... 607,863 607,863
4.53%, 12/25/2001.......................................................... 436,155 436,155
4.68%, 9/25/2003........................................................... 50,878 50,878
4.84%, 9/25/2003........................................................... 420,018 420,018
3.26%, 10/25/2005.......................................................... 1,512,299 1,512,299
4.55%, 1/25/2007........................................................... 269,177 269,177
4.44%, 4/25/2007........................................................... 2,335,703 2,335,703
4.79%, 6/25/2008........................................................... 835,303 835,303
4.63%, 12/25/2008.......................................................... 407,895 407,895
4.67%, 1/25/2009........................................................... 929,581 929,581
4.87%, 4/25/2013........................................................... 2,261,030 2,261,030
4.80%, 5/25/2013........................................................... 1,678,744 1,678,744
4.64%, 7/25/2013........................................................... 105,637 105,637
4.81%, 8/25/2013........................................................... 1,836,400 1,836,400
4.69%, 12/25/2013.......................................................... 2,057,961 2,057,961
4.69%, 12/25/2013.......................................................... 265,793 265,793
4.80%, 1/25/2014........................................................... 1,026,549 1,026,549
4.56%, 2/25/2014........................................................... 397,475 397,475
4.69%, 2/25/2014........................................................... 1,617,360 1,617,360
4.38%, 5/25/2014........................................................... 960,843 960,843
4.87%, 7/25/2014........................................................... 1,478,698 1,478,698
4.57%,12/25/2015........................................................... 3,713,989 3,713,989
------------
TOTAL U.S. GOVERNMENT AGENCIES (cost $72,168,655).............................. $ 72,168,655
============
FIRST PRAIRIE MONEY MARKET FUND, MONEY MARKET SERIES
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1993
PRINCIPAL
REPURCHASE AGREEMENT-8.6% AMOUNT VALUE
------------ ------------
National Westminster Bank USA, 3.25%
dated 12/31/1993, due 1/3/1994 in the amount of $14,003,792
(fully collateralized by $14,020,000 U.S. Treasury Notes
4.625%, due 12/31/1994, value $14,471,795)
(cost $14,000,000)......................................................... $ 14,000,000 $ 14,000,000
============
TOTAL INVESTMENTS (cost $163,141,664).................................. 100.3% $163,141,664
====== ============
LIABILITIES, LESS CASH AND RECEIVABLES................................. (.3%) $ (518,187)
====== ============
NET ASSETS............................................................. 100.0% $162,623,477
====== ============
NOTES TO STATEMENT OF INVESTMENTS:
(a) Backed by an irrevocable letter of credit.
(b) Variable interest rate - subject to change approximately every 7 to 90 days
(c) Variable interest rate - subject to change daily.
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
FIRST PRAIRIE MONEY MARKET FUND, GOVERNMENT SERIES
STATEMENT OF INVESTMENTS DECEMBER 31, 1993
ANNUALIZED
YIELD ON
DATE OF PRINCIPAL
U.S. TREASURY BILLS-33.5% PURCHASE AMOUNT VALUE
---------- ------------ ------------
<S> <C> <C> <C> <C>
4/14/1994..................................................... 3.17% $ 25,000,000 $ 24,775,404
5/5/1994...................................................... 3.27 17,500,000 17,308,919
10/20/1994.................................................... 3.52 10,000,000 9,723,006
------------
TOTAL U.S. TREASURY BILLS (cost $51,807,329)...................... $ 51,807,329
============
U.S. GOVERNMENT AGENCIES-63.8%
Agency for International Development
Floating Rate Notes (a)
6/1/2005...................................................... 3.58% $ 23,690,000 $ 23,690,000
9/15/2018..................................................... 3.81 10,000,000 10,231,217
1/1/2021...................................................... 3.50 25,000,000 25,000,000
11/1/2021..................................................... 3.39 15,000,000 15,000,000
Small Business Administration
Pool Certificates (a)
6/25/2013..................................................... 4.69 963,875 963,875
9/25/2014..................................................... 4.58 920,905 920,905
7/25/2016..................................................... 4.18 14,133,814 14,182,121
9/25/2016..................................................... 4.18 8,668,941 8,698,589
------------
TOTAL U.S. GOVERNMENT AGENCIES (cost $98,686,707)................. $ 98,686,707
============
REPURCHASE AGREEMENT-2.6%
National Westminster Bank USA
dated 12/31/1993, due 1/3/1994 in the amount of $4,001,083
(fully collateralized by $4,005,000
U.S. Treasury Notes 4.625%, due 12/31/1994,
value $4,133,911)
(cost $4,000,000)............................................. 3.25% $ 4,000,000 $ 4,000,000
============
TOTAL INVESTMENTS (cost $154,494,036).................... 99.9% $154,494,036
====== ============
CASH AND RECEIVABLES (NET)............................... .1% $ 119,227
====== ============
NET ASSETS............................................... 100.0% $154,613,263
====== ============
NOTE TO STATEMENT OF INVESTMENTS;
(a) Variable interest rate-subject to periodic change.
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
FIRST PRAIRIE MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1993
MONEY MARKET GOVERNMENT
SERIES SERIES
------------ ------------
ASSETS:
<S> <C> <C>
Investments in securities, at value-Note 2(a,b)............................ $163,141,664 $154,494,036
Interest receivable........................................................ 773,526 1,037,531
Receivable for investment securities sold.................................. 114,818 54,007
Prepaid expenses........................................................... 33,232 12,599
------------ ------------
164,063,240 155,598,173
------------ ------------
LIABILITIES:
Due to The First National Bank of Chicago.................................. 103,884 107,619
Due to The Dreyfus Corporation............................................. 102,287 239,977
Due to Custodian........................................................... 1,164,365 566,747
Accrued expenses........................................................... 69,227 70,567
------------ ------------
1,439,763 984,910
------------ ------------
NET ASSETS..................................................................... $162,623,477 $154,613,263
============ ============
REPRESENTED BY:
Paid-in capital............................................................ $162,600,116 $154,633,611
Accumulated net realized gain (loss) on investments........................ 23,361 (20,348)
------------ ------------
NET ASSETS at value applicable to 162,600,116 and 154,633,611 shares outstanding
(unlimited number of $.01 par value shares of
Beneficial Interest authorized)............................................ $162,623,477 $154,613,263
============ ============
NET ASSET VALUE, offering and redemption price per share:
Money Market Series
($162,623,477/162,600,116 shares)...................................... $1.00
=====
Government Series
($154,613,263/154,633,611 shares)...................................... $1.00
=====
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1993
MONEY MARKET GOVERNMENT
SERIES SERIES
------------ ------------
INVESTMENT INCOME:
INTEREST INCOME............................................................ $ 7,507,525 $ 15,470,122
------------ ------------
EXPENSES-Note 2(c):
Management fee-Note 3(a)............................................... $ 995,552 $ 2,365,743
Administration fee-Note 3(a)........................................... 172,808 365,343
Shareholder servicing costs-Note 3(b).................................. 715,035 1,241,878
Custodian fees......................................................... 62,357 118,324
Professional fees...................................................... 28,562 72,681
Prospectus and shareholders' reports-Note 3(b)......................... 20,484 15,693
Registration fees...................................................... 13,125 14,770
Trustees' fees and expenses-Note 3(c).................................. 2,979 6,768
Miscellaneous.......................................................... 14,114 40,202
------------ ------------
2,025,016 4,241,402
Less-reduction in management fee and administration
fee due to undertakings-Note 3(a).................................. 102,617 671,626
------------ ------------
TOTAL EXPENSES................................................. 1,922,399 3,569,776
------------ ------------
INVESTMENT INCOME-NET.......................................................... 5,585,126 11,900,346
NET REALIZED GAIN (LOSS) ON INVESTMENTS-Note 2(b).............................. 23,361 (13,557)
------------ ------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................... $ 5,608,487 $ 11,886,789
============ ============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
FIRST PRAIRIE MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
MONEY MARKET SERIES GOVERNMENT SERIES
--------------------------- ---------------------------
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
--------------------------- ---------------------------
1992 1993 1992 1993
------------ ------------ ------------ ------------
OPERATIONS:
<S> <C> <C> <C> <C>
Investment income-net....................................... $ 12,399,605 $ 5,585,126 $ 19,082,767 $ 11,900,346
Net realized gain (loss) on investments..................... 4,319 23,361 (5,649) (13,557)
------------ ------------ ------------ ------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS........................... 12,403,924 5,608,487 19,077,118 11,886,789
------------ ------------ ------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net....................................... (12,399,605) (5,585,126) (19,082,767) (11,900,346)
Net realized gain on investments............................ (5,410) (4,319) __ __
------------ ------------ ------------ ------------
TOTAL DIVIDENDS......................................... (12,405,015) (5,589,445) (19,082,767) (11,900,346)
------------ ------------ ------------ ------------
BENEFICAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold............................... 2,907,881,568 1,739,129,690 2,812,319,864 1,491,641,119
Dividends reinvested........................................ 3,510,328 2,244,715 847,877 564,832
Cost of shares redeemed..................................... (3,107,316,541)(1,839,635,459)(3,255,326,710)(1,886,311,644)
------------ ------------ ------------ ------------
(DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS.................... (195,924,645) (98,261,054) (442,158,969) (394,105,693)
------------ ------------ ------------ ------------
TOTAL (DECREASE) IN NET ASSETS.................. (195,925,736) (98,242,012) (442,164,618) (394,119,250)
NET ASSETS:
Beginning of year........................................... 456,791,225 260,865,489 990,897,131 548,732,513
------------ ------------ ------------ ------------
End of year................................................. $260,865,489 $162,623,477 $548,732,513 $154,613,263
============ ============ ============ ============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
FIRST PRAIRIE MONEY MARKET FUND, MONEY MARKET SERIES
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 information provided in the Fund's financial statements.
YEAR ENDED DECEMBER 31,
---------------------------------------------------
PER SHARE DATA: 1989 1990 1991 1992 1993
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year................ $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income-net............................. .0842 .0734 .0543 .0313 .0274
Net realized gain (loss) on investments........... -- -- -- -- .0001
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS.............. .0842 .0734 .0543 .0313 .0275
------- ------- ------- ------- -------
DISTRIBUTIONS:
Dividends from investment income-net.............. (.0842) (.0734) (.0543) (.0313) (.0274)
Dividends from net realized gain on investments... -- -- -- -- --
------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS........................... (.0842) (.0734) (.0543) (.0313) (.0274)
------- ------- ------- ------- -------
Net asset value, end of year...................... $1.0000 $1.0000 $1.0000 $1.0000 $1.0001
======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN 8.75% 7.59% 5.57% 3.18% 2.77%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........... .95% .96% .97% .98% .94%
Ratio of net investment income to average
net assets.................................... 8.34% 7.33% 5.42% 3.17% 2.73%
Decrease reflected in above expense ratios due
to expense reimbursements..................... -- -- -- -- .05%
Net Assets, end of year (000's Omitted)........... $355,260 $414,258 $456,791 $260,865 $162,623
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
FIRST PRAIRIE MONEY MARKET FUND, GOVERNMENT SERIES
FINANCIAL HIGHLIGHTS (CONTINUED)
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 information provided in the Fund's financial statements.
YEAR ENDED DECEMBER 31,
---------------------------------------------------
PER SHARE DATA: 1989 1990 1991 1992 1993
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year................ $1.0001 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income-net............................. .0811 .0715 .0498 .0283 .0249
Net realized gain (loss) on investments........... -- -- -- -- (.0001)
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS.............. .0811 .0715 .0498 .0283 .0248
------- ------- ------- ------- -------
DISTRIBUTIONS:
Dividends from investment income-net.............. (.0811) (.0715) (.0498) (.0283) (.0249)
Dividends from net realized gain on investments... (.0001) -- -- -- --
------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS........................... (.0812) (.0715) (.0498) (.0283) (.0249)
------- ------- ------- ------- -------
Net asset value, end of year...................... $1.0000 $1.0000 $1.0000 $1.0000 $ .9999
======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN 8.43% 7.39% 5.10% 2.87% 2.52%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........... .93% .93% .90% .91% .74%
Ratio of net investment income to average
net assets.................................... 8.05% 7.09% 4.97% 2.87% 2.48%
Decrease reflected in above expense ratios due
to expense reimbursements..................... .02% -- -- -- .14%
Net Assets, end of year (000's Omitted)........... $272,578 $777,257 $990,897 $548,733 $154,613
See notes to financial statements.
</TABLE>
FIRST PRAIRIE MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
NOTE 1-GENERAL:
The Fund is registered under the Investment Company Act of 1940
("Act") as a diversified open-end management investment company and
operates as a series company issuing two classes of Beneficial Interest:
the Money Market Series and the Government Series. The Fund accounts
separately for the assets, liabilities and operations of each series. 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 3(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 for each series; the Fund has adopted certain investment,
portfolio valuation and dividend and distribution policies to enable it to do
so.
NOTE 2-SIGNIFICANT ACCOUNTING POLICIES:
(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. Realized gain and loss
from securities transactions are recorded on the identified cost basis.
Interest income is recognized on the accrual basis. Cost of investments
represents amortized cost.
The Fund may enter into repurchase agreements with financial
institutions, deemed to be creditworthy by the Fund's Adviser, subject to
the seller's agreement to repurchase and the Fund's agreement to resell
such securities at a mutually agreed upon price. Securities purchased
subject to repurchase agreements are deposited with the Fund's custodian
and, pursuant to the terms of the repurchase agreement, must have an
aggregate market value greater than or equal to the repurchase price plus
accrued interest at all times. If the value of the underlying securities
falls below the value of the repurchase price plus accrued interest, the
Fund will require the seller to deposit additional collateral by the next
business day. If the request for additional collateral is not met, or the
seller defaults on its repurchase obligation, the Fund maintains the right
to sell the underlying securities at market value and may claim any
resulting loss against the seller.
(C) EXPENSES: Expenses directly attributable to each series are charged
to that series' operations; expenses which are applicable to both series
are allocated between them.
(D) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund, with
respect to both series, to declare dividends daily from investment
income-net. Such dividends are paid monthly. Dividends from net realized
capital gain, with respect to both series, are normally declared and paid
annually, but each series may make distributions on a more frequent basis
to comply with the distribution requirements of the Internal Revenue
Code. However, to the extent that net realized capital gain of either series
can be reduced by capital loss carryovers of that series, such gain will not
be distributed.
(E) FEDERAL INCOME TAXES: It is the policy of each series to continue to
qualify as a regulated investment company, if such qualification is in the
best interests of its shareholders, by complying with the provisions
available to certain investment companies, as defined in applicable
sections of the Internal Revenue Code, and to make distributions of
taxable income sufficient to relieve it from all, or substantially all,
Federal income taxes.
The Government Series has an unused capital loss carryover of
approximately $3,100 available for Federal income tax purposes to be
applied against future net securities profits, if any, realized subsequent
to December 31, 1993. The carryover does not include net realized
securities losses from November 1, 1993 through December 31, 1993
which are treated for Federal income tax purposes as arising in 1994. If
not applied, the carryover expires in 2000.
At December 31, 1993, the cost of investments of each series for
Federal income tax purposes was substantially the same as the cost for
financial reporting purposes (see the Statement of Investments).
FIRST PRAIRIE MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 3-INVESTMENT ADVISORY FEE, ADMINISTRATION FEE AND OTHER
TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the
Manager, the management fee for each series is computed at the annual
rate of .55 of 1% of the average daily value of the net assets of each
series and is payable monthly. The agreement further provides that if in
any full year the aggregate expenses of either series, excluding interest
on borrowings, taxes, brokerage, and extraordinary expenses, exceed the
expense limitation of any state having jurisdiction over the Fund, that
series 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 either
series' net assets in accordance with California "blue sky" regulations.
However, the Manager and Dreyfus had undertaken from January 4, 1993
through April 29, 1993 and the Manager from April 30, 1993 through May
27, 1993 with respect to the Money Market Series and through November
30, 1993 with respect to the Government Series, to reduce the
management fee and administration fee paid by either series, to the
extent that such series' aggregate expenses (excluding certain expenses
as described above) exceeded specified annual percentages of that series'
average daily net assets. The reductions in management fee and the
administration fee for the year ended December 31, 1993, pursuant to the
undertakings for the Money Market Series and the Government Series
amounted to $102,617 and $671,626, respectively.
Effective April 30, 1993, the Manager has engaged Dreyfus to assist it
in providing certain administrative services for each series 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.
Prior to April 30, 1993, pursuant to an Investment Advisory Agreement
with the Manager and an Administration Agreement with Dreyfus, the
Investment Advisory Fee and the Administration Fee were computed at
annual rates of .40 of 1% and .20 of 1%, respectively, of the average daily
value of each series net assets. The agreements provided that if in any
full year the aggregate expenses of either series (excluding certain
expenses as described above), exceeded the expense limitation of any
state having jurisdiction over the series, that series could deduct from
the payments to be made to the Manager and Dreyfus, or the Manager and
Dreyfus would bear their proportionate share of such excess to the extent
required by state law.
(B) The Fund has adopted a Service Plan (the "Plan") pursuant to which
each series 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 each
series' 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 each series' average daily net
assets for any full year. For the year ended December 31, 1993, the Money
Market Series and the Government Series were charged $519,700 and
$1,204,982, respectively, 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 the Dreyfus. 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 MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(D) On December 5, 1993, Dreyfus entered into an Agreement and Plan of
Merger 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 the receipt of certain regulatory
approvals and the approvals of the stockholders of Dreyfus and of Mellon.
The merger is expected to occur in mid-1994, but could occur
significantly later.
FIRST PRAIRIE MONEY MARKET FUND
REPORT OF ERNST & YOUNG, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
FIRST PRAIRIE MONEY MARKET FUND
We have audited the accompanying statement of assets and liabilities
of First Prairie Money Market Fund (comprising, respectively, the Money
Market Series and the Government Series), including the statements of
investments, as of December 31, 1993, 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, 1993 by
correspondence with the custodian and others. 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 Money Market Fund, at December 31, 1993, the
results of their operations for the year then ended, the changes in their
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.
New York, New York
February 4, 1994
FIRST PRAIRIE
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
Distributor
DREYFUS SERVICE CORPORATION
200 Park Avenue
New York, NY 10166
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. 368/711AR9312
FIRST
(FIRST PRAIRIE LOGO)
PRAIRIE
MONEY MARKET
FUND
ANNUAL REPORT
DECEMBER 31, 1993
