LETTER TO SHAREHOLDERS
Dear Shareholder:
The annualized yield for the First Prairie Money Market Fund, Money
Market Series, was 3.01% for the six-month fiscal period ended June 30, 1994.
This is the equivalent of an annualized effective yield of 3.06% after taking
into account the effect of compounding.*
For the Government Series, the annualized yield for the six-month period
ended June 30, 1994 was 3.23%, or an annualized effective yield of 3.28%
after taking into account the effect of compounding.
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
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. Federal Reserve Board
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.
Later this year, depending upon how strong the economy is, we anticipate
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.
<TABLE>
<CAPTION>
FIRST PRAIRIE MONEY MARKET FUND, MONEY MARKET SERIES
STATEMENT OF INVESTMENTS JUNE 30, 1994 (UNAUDITED)
PRINCIPAL
NEGOTIABLE BANK CERTIFICATES OF DEPOSIT-1.5% AMOUNT VALUE
-------------- --------------
<S> <C> <C> <C>
Mitsubishi Bank, Ltd. (Yankee)
4.50%, 8/15/1994
(cost $5,001,403)....................................................... $ 5,000,000 $ 5,001,403
==============
COMMERCIAL PAPER--12.8%
ABN-Amro Bank N.V.
4.53%, 8/17/1994........................................................ $ 5,000,000 $ 4,970,756
Banc One Corp.
4.51%, 8/31/1994........................................................ 3,818,000 3,789,211
Bayerische Vereinsbank AG
4.50%, 10/7/1994........................................................ 5,000,000 4,939,703
Canadian Imperial Holdings Inc.
4.50%, 8/16/1994........................................................ 5,000,000 4,971,569
Golden Gate Management Inc.
4.32%, 7/29/1994 (a).................................................... 6,000,000 5,979,933
Goldman Sachs Group L.P.
4.33%, 8/15/1994........................................................ 6,000,000 5,967,750
Hartz 667 Commercial Paper Corp.
3.30%, 7/13/1994 (a).................................................... 4,982,000 4,976,602
Maguire/Thomas Partners Westlake/Southlake Partnership
4.53%, 9/13/1994 (a).................................................... 6,000,000 5,944,747
--------------
TOTAL COMMERCIAL PAPER (cost $41,540,271)................................... $ 41,540,271
==============
CORPORATE NOTES--1.5%
Merrill Lynch & Co. Inc.
4.40%, 6/7/1995 (b)
(cost $5,000,000) ...................................................... $ 5,000,000 $ 5,000,000
==============
SHORT-TERM BANK NOTES-1.5%
NationsBank of North Carolina N.A.
3.52%, 8/18/1994
(cost $4,999,869)....................................................... $ 5,000,000 $ 4,999,869
==============
U.S. TREASURY BILLS--15.4%
3%, 7/14/1994
(cost $49,945,833) ..................................................... $ 50,000,000 $ 49,945,833
==============
U.S. GOVERNMENT AGENCIES--21.8%
Federal Home Loan Banks
Floating Rate Notes
4.18%, 7/6/1995 (b)..................................................... $ 25,000,000 $ 25,000,000
4.23%, 4/7/2000 (b)..................................................... 10,000,000 10,000,000
FIRST PRAIRIE MONEY MARKET FUND, MONEY MARKET SERIES
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1994 (UNAUDITED)
PRINCIPAL
U.S. GOVERNMENT AGENCIES (CONTINUED) AMOUNT VALUE
---------------- -------------
Federal Home Loan Mortgage Corp.
Floating Rate Notes
4.93%, 3/22/2000 (b).................................................... $ 5,000,000 $ 5,000,000
Small Business Administration
Individual Loan Certificates (b)
4.92%, 5/15/1997........................................................ 50,962 50,962
5.90%, 7/15/1997........................................................ 58,675 58,675
5.89%, 6/15/2000........................................................ 71,477 71,477
5.87%, 7/15/2000........................................................ 189,848 189,848
5.99%, 11/15/2000....................................................... 168,509 168,509
5.91%, 12/15/2001....................................................... 90,797 90,797
4.94%, 6/15/2002........................................................ 89,428 89,428
5.08%, 6/15/2003........................................................ 125,037 125,037
4.88%, 10/15/2004....................................................... 346,793 346,793
4.92%, 11/15/2004....................................................... 205,466 205,466
4.97%, 4/15/2009........................................................ 414,482 414,482
4.90%, 7/15/2010........................................................ 429,455 429,455
5.89%, 10/15/2010....................................................... 679,668 679,668
4.99%, 8/15/2012........................................................ 454,429 454,429
5.00%, 1/15/2013........................................................ 448,124 448,124
5.05%, 8/15/2013........................................................ 268,010 268,010
5.92%, 1/15/2014........................................................ 508,566 508,566
5.01%, 4/15/2014........................................................ 230,220 230,220
6.03%, 4/15/2014........................................................ 292,161 292,161
4.91%, 12/15/2014....................................................... 35,389 35,389
5.04%, 12/15/2014....................................................... 132,506 132,506
5.23%, 7/15/2015........................................................ 581,609 581,609
4.88%, 9/15/2015........................................................ 124,481 124,481
Small Business Administration
Pool Certificates (b)
6.03%, 9/25/1995........................................................ 46,563 46,563
4.66%, 4/25/1996........................................................ 46,729 46,729
5.19%, 5/25/1999........................................................ 115,433 115,433
6.05%, 3/25/2000........................................................ 386,924 386,924
6.07%, 1/25/2001........................................................ 571,182 571,182
5.91%, 12/25/2001....................................................... 413,334 413,334
5.99%, 9/25/2003........................................................ 40,896 40,896
6.25%, 9/25/2003........................................................ 337,608 337,608
3.66%, 10/25/2005....................................................... 1,463,139 1,463,139
4.95%, 1/25/2007........................................................ 261,643 261,643
4.83%, 4/25/2007........................................................ 1,931,238 1,931,238
6.19%, 6/25/2008........................................................ 815,521 815,521
FIRST PRAIRIE MONEY MARKET FUND, MONEY MARKET SERIES
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1994 (UNAUDITED)
PRINCIPAL
U.S. GOVERNMENT AGENCIES (CONTINUED) AMOUNT VALUE
----------------- --------------
Small Business Administration (continued)
Pool Certificates (b) (continued)
5.99%, 12/25/2008....................................................... $ 314,182 $ 314,182
6.06%, 1/25/2009........................................................ 908,564 908,564
5.13%, 4/25/2013........................................................ 2,225,458 2,225,458
5.21%, 5/25/2013........................................................ 1,652,865 1,652,865
5.99%, 7/25/2013........................................................ 104,044 104,044
5.22%, 8/25/2013........................................................ 1,808,657 1,808,657
5.09%, 12/25/2013....................................................... 261,828 261,828
6.09%, 12/25/2013....................................................... 2,027,539 2,027,539
6.20%, 1/25/2014........................................................ 1,011,687 1,011,687
5.95%, 2/25/2014........................................................ 391,594 391,594
6.09%, 2/25/2014........................................................ 1,593,765 1,593,765
4.77%, 5/25/2014........................................................ 946,565 946,565
6.12%, 7/25/2014........................................................ 1,457,821 1,457,821
5.97%, 12/25/2015....................................................... 3,666,203 3,666,203
--------------
TOTAL U.S. GOVERNMENT AGENCIES (cost $70,797,074)........................... $ 70,797,074
==============
REPURCHASE AGREEMENTS--43.6%
National Westminster Bank USA, 4.25%
dated 6/30/1994, due 7/1/1994 in the amount of $75,008,854
(fully collateralized by $28,100,000 U.S. Treasury Notes
4.75% to 6.00%, due 11/15/1994 to 2/15/1997 and $49,145,000
U.S. Treasury Bills due 3/9/1995, value $75,810,399).................... $ 75,000,000 $ 75,000,000
Sanwa BGK-Securities Co., L.P., 4.10%
dated 6/30/1994, due 7/1/1994 in the amount of $67,007,631
(fully collateralized by $70,090,000 U.S. Treasury Bills
due 3/9/1995, value $67,719,186)........................................ 67,000,000 67,000,000
--------------
TOTAL REPURCHASE AGREEMENTS (cost $142,000,000)............................. $142,000,000
==============
TOTAL INVESTMENTS (cost $319,284,450)............................. 98.1% $319,284,450
====== ==============
CASH AND RECEIVABLES (NET) ....................................... 1.9% $ 6,119,508
====== ==============
NET ASSETS ................................................. 100.0% $325,403,958
====== ==============
NOTES TO STATEMENT OF INVESTMENTS:
(a) Backed by an irrevocable letter of credit.
(b) Variable interest rate - subject to periodic change.
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
FIRST PRAIRIE MONEY MARKET FUND, GOVERNMENT SERIES
STATEMENT OF INVESTMENTS JUNE 30, 1994 (UNAUDITED)
ANNUALIZED
YIELD ON
DATE OF PRINCIPAL
U.S. TREASURY BILLS--14.5% PURCHASE AMOUNT VALUE
----------- ------------ --------------
<S> <C> <C> <C> <C>
7/21/1994................................................ 3.61% $ 5,000,000 $ 4,990,056
8/18/1994................................................ 3.78 5,000,000 4,975,100
9/22/1994................................................ 3.91 5,000,000 4,955,675
-------------
TOTAL U.S. TREASURY BILLS (cost $14,920,831)................. $ 14,920,831
==============
U.S. GOVERNMENT AGENCIES--70.1%
Agency for International Development
Floating Rate Notes (a)
6/1/2005 ................................................ 5.18% $ 23,155,000 $ 23,155,000
9/15/2018 ............................................... 5.28 10,000,000 10,226,579
11/1/2021 ............................................... 4.97 15,000,000 15,000,000
Small Business Administration
Pool Certificates (a)
6/25/2013 ............................................... 5.09 948,913 948,913
9/25/2014 ............................................... 5.98 907,881 907,881
7/25/2016 ............................................... 4.57 13,363,640 13,408,311
9/25/2016 ............................................... 4.57 8,556,965 8,585,593
-------------
TOTAL U.S. GOVERNMENT AGENCIES (cost $72,232,277)............ $ 72,232,277
==============
REPURCHASE AGREEMENT--14.5%
National Westminster Bank USA
dated 6/30/1994, due 7/1/1994 in the amount of
$15,001,771 (fully collateralized by $15,400,000
U.S. Treasury Notes 6.50%, due 4/30/1999,
value $15,292,521)
(cost $15,000,000)....................................... 4.25% $ 15,000,000 $ 15,000,000
==============
TOTAL INVESTMENTS (cost $102,153,108)........... 99.1% $102,153,108
====== ==============
CASH AND RECEIVABLES (NET)...................... .9% $ 908,364
====== ==============
NET ASSETS...................................... 100.0% $103,061,472
====== ==============
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 JUNE 30, 1994 (UNAUDITED)
MONEY MARKET GOVERNMENT
SERIES SERIES
------------- ---------------
<S> <C> <C>
ASSETS:
Investments in securities, at value (including repurchase agreements
of $142,000,000 and $15,000,000 for the Money Market Series and the
Government Series, respectively)-Note 2(a,b).......................... $319,284,450 $102,153,108
Cash.................................................................... 5,320,659 -
Interest receivable..................................................... 860,414 690,564
Receivable for investment securities sold............................... 96,715 435,707
Prepaid expenses........................................................ 54,116 12,543
------------- ---------------
325,616,354 103,291,922
------------- ---------------
LIABILITIES:
Due to The First National Bank of Chicago............................... 95,050 63,613
Due to The Dreyfus Corporation.......................................... 39,093 32,355
Due to Custodian........................................................ - 89,099
Accrued expenses........................................................ 78,253 45,383
------------- ---------------
212,396 230,450
------------- ---------------
NET ASSETS.................................................................. $325,403,958 $103,061,472
============ ===============
REPRESENTED BY:
Paid-in capital......................................................... $325,443,541 $103,127,264
Accumulated net realized (loss) on investments.......................... (39,583) (65,792)
------------- ---------------
NET ASSETS, at value........................................................ $325,403,958 $103,061,472
============ ===============
Outstanding shares of Beneficial Interest, equivalent to a net asset value
per share of $1.00 for each series (unlimited number of $.01 par value
shares authorized)...................................................... 325,443,541 103,127,264
============ ===============
STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1994 (UNAUDITED)
MONEY MARKET GOVERNMENT
SERIES SERIES
------------- ---------------
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 3,150,855 $ 2,616,197
------------- ---------------
EXPENSES-Note 2(c):
Management fee--Note 3(a)............................................. $ 430,028 $ 355,904
Shareholder servicing costs--Note 3(b)................................ 297,123 174,520
Professional fees..................................................... 33,386 9,949
Custodian fees........................................................ 17,161 7,586
Prospectus and shareholders' reports-Note 3(b)........................ 9,823 5,729
Trustees' fees and expenses-Note 3(c)................................. 4,102 1,874
Registration fees..................................................... 3,056 9,696
Miscellaneous......................................................... 5,080 8,193
------------- ---------------
TOTAL EXPENSES.................................................... 799,759 573,451
------------- ---------------
INVESTMENT INCOME-NET....................................................... 2,351,096 2,042,746
NET REALIZED (LOSS) ON INVESTMENTS-Note 2(b)................................ (62,944) (45,444)
------------- ---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 2,288,152 $ 1,997,302
============ ===============
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 SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
DECEMBER 31, JUNE 30, 1994 DECEMBER 31, JUNE 30, 1994
1993 (UNAUDITED) 1993 (UNAUDITED)
---------------- -------------- ----------------- --------------
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income--net........... $ 5,585,126 $ 2,351,096 $ 11,900,346 $ 2,042,746
Net realized gain (loss) on investments 23,361 (62,944) (13,557) (45,444)
---------------- ------------ -------------- --------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS.. 5,608,487 2,288,152 11,886,789 1,997,302
---------------- ------------ -------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net........... (5,585,126) (2,351,096) (11,900,346) (2,042,746)
Net realized gain on investments. (4,319) -- -- --
---------------- ------------ --------------- --------------
TOTAL DIVIDENDS................ (5,589,445) (2,351,096) (11,900,346) (2,042,746)
---------------- ------------ --------------- --------------
BENEFICIAL INTEREST TRANSACTIONS
($1.00 per share):
Net proceeds from shares sold.... 1,739,129,690 948,635,207 1,491,641,119 264,614,753
Dividends reinvested............. 2,244,715 1,126,369 564,832 390,079
Cost of shares redeemed.......... (1,839,635,459) (786,918,151) (1,886,311,644) (316,511,179)
---------------- -------------- --------------- --------------
INCREASE (DECREASE) IN NET ASSETS
FROM BENEFICIAL INTEREST
TRANSACTIONS............... (98,261,054) 162,843,425 (394,105,693) (51,506,347)
---------------- -------------- --------------- --------------
TOTAL INCREASE (DECREASE) IN
NET ASSETS........... (98,242,012) 162,780,481 (394,119,250) (51,551,791)
NET ASSETS:
Beginning of period.............. 260,865,489 162,623,477 548,732,513 154,613,263
---------------- -------------- --------------- ---------------
End of period.................... $ 162,623,477 $ 325,403,958 $ 154,613,263 $ 103,061,472
============== =============== =============== ================
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 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... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0001
------- ------ ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income--net................. .0842 .0734 .0543 .0313 .0274 .0149
Net realized gain (loss) on investments -- -- -- -- .0001 (.0002)
------- ------ ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS..... .0842 .0734 .0543 .0313 .0275 .0147
------- ------ ------- ------- ------- -------
DISTRIBUTIONS:
Dividends from investment income--net.. (.0842) (.0734) (.0543) (.0313) (.0274) (.0149)
Dividends from net realized gain
on investments....................... -- -- -- -- -- --
------- ------ ------- ------- ------- -------
TOTAL DISTRIBUTIONS.................. (.0842) (.0734) (.0543) (.0313) (.0274) (.0149)
------- ------ ------- ------- ------- -------
Net asset value, end of period......... $1.0000 $1.0000 $1.0000 $1.0000 $1.0001 $ .9999
------- ------ ------- ------- ------- -------
TOTAL INVESTMENT RETURN 8.75% 7.59% 5.57% 3.18% 2.77% 3.05%*
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .95% .96% .97% .98% 94% 1.02%*
Ratio of net investment income to average
net assets........................... 8.34% 7.33% 5.42% 3.17% 2.73% 3.01%*
Decrease reflected in above expense ratios due
to expense reimbursements............ -- -- -- -- .05% --
Net Assets, end of period (000's Omitted) $355,260 $414,258 $456,791 $260,865 $162,623 $325,404
* Annualized.
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 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... $1.0001 $1.0000 $1.0000 $1.0000 $1.0000 $ .9999
------ ------- ------ ------- ------- ---------
INVESTMENT OPERATIONS:
Investment income--net................. .0811 .0715 .0498 .0283 .0249 .0160
Net realized gain (loss) on investments -- -- -- -- (.0001) (.0005)
------ ------- ------ ------- ------- ---------
TOTAL FROM INVESTMENT OPERATIONS..... .0811 .0715 .0498 .0283 .0248 .0155
------ ------- ------ ------- ------- ---------
DISTRIBUTIONS:
Dividends from investment income--net.. (.0811) (.0715) (.0498) (.0283) (.0249) (.0160)
Dividends from net realized gain
on investments....................... (.0001) -- -- -- -- --
------ ------- ------ ------- ------- ---------
TOTAL DISTRIBUTIONS.................. (.0812) (.0715) (.0498) (.0283) (.0249) (.0160)
------ ------- ------ ------- ------- ---------
Net asset value, end of period......... $1.0000 $1.0000 $1.0000 $1.0000 $ .9999 $ .9994
======= ======= ======= ======= ======= =========
TOTAL INVESTMENT RETURN 8.43% 7.39% 5.10% 2.87% 2.52% 3.25%*
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .93% .93% .90% .91% .74% .89%*
Ratio of net investment income to average
net assets........................... 8.05% 7.09% 4.97% 2.87% 2.48% 3.16%*
Decrease reflected in above expense ratios due
to expense reimbursements............ .02% -- -- -- .14% --
Net Assets, end of period (000's Omitted) $272,578 $777,2 $990,897 $548,733 $154,613 $103,061
* Annualized.
See notes to financial statements.
</TABLE>
FIRST PRAIRIE MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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 applicable
provisions of the Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from 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
FIRST PRAIRIE MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 June 30, 1994, 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).
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 21/2% of the first $30 million, 2% of the
next $70 million and 11/2% of the excess over $100 million of the average
value of either series' net assets in accordance with California "blue sky"
regulations. No expense reimbursement was required pursuant to the Agreement
for the six months ended June 30, 1994.
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.
(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 dail
y 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 six months ended June 30, 1994, the Money Market Series and the
Government Series were charged $199,673 and $161,902, 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 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 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
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. 368/711SA946
FIRST
PRAIRIE
MONEY MARKET
FUND
SEMI-ANNUAL REPORT
JUNE 30, 1994
