LETTER TO SHAREHOLDERS
Dear Shareholder:
The yield for First Prairie Money Market Fund, Money Market Series, was
3.56% for the fiscal year ended December 31, 1994. After taking into account
the effect of compounding, the effective yield was 3.62%.* For the First
Prairie Money Market Fund, Government Series, the yield was 3.79%, and the
effective yield was 3.86%.*
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 1994. 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 Money Market Series shareholders at a
meeting held in January 1995, a transfer of the Money Market Series' assets
to the 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 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.
<TABLE>
<CAPTION>
FIRST PRAIRIE MONEY MARKET FUND, MONEY MARKET SERIES
STATEMENT OF INVESTMENTS DECEMBER 31, 1994
PRINCIPAL
NEGOTIABLE BANK CERTIFICATES OF DEPOSIT--8.4% AMOUNT VALUE
-------------- --------------
<S> <C> <C>
Canadian Imperial Bank of Commerce (Yankee)
5.96%, 1/19/1995........................................................ $ 5,000,000 $ 5,000,000
Norichukin Bank (Yankee)
5.80%, 1/3/1995......................................................... 5,000,000 5,000,016
--------------
TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT
(cost $10,000,016)...................................................... $ 10,000,016
=============
COMMERCIAL PAPER--12.4%
AIG Funding, Inc.
6.06%, 2/22/1995........................................................ $ 5,000,000 $ 4,956,667
Barclays Bank of Canada
6.07%, 2/22/1995........................................................ 5,000,000 4,956,594
Receivables Capital Corp.
6.18%, 2/10/1995........................................................ 5,000,000 4,965,944
--------------
TOTAL COMMERCIAL PAPER
(cost $14,879,205)...................................................... $ 14,879,205
=============
CORPORATE NOTE--4.2%
Merrill Lynch & Co. Inc.
5.79%, 6/7/1995 (a)
(cost $5,000,000)....................................................... $ 5,000,000 $ 5,000,000
=============
BANKERS ACCEPTANCE--4.1%
Fuji Bank, Ltd. (Yankee)
5.86%, 2/22/1995
(cost $4,958,328)....................................................... $ 5,000,000 $ 4,958,328
=============
U.S. GOVERNMENT AGENCIES--37.2%
Federal Home Loan Banks
Floating Rate Notes
4.80%, 7/6/1995 (a)..................................................... $ 25,000,000 $ 25,000,000
Small Business Administration
Pool Certificates (a)
6.81%, 9/25/1995........................................................ 26,559 26,559
5.63%, 4/25/1996........................................................ 33,884 33,884
6.44.%, 5/25/1999....................................................... 93,890 93,890
7.04%, 3/25/2000........................................................ 358,109 358,109
7.06%, 1/25/2001........................................................ 535,131 535,131
6.87%, 12/25/2001....................................................... 308,831 308,831
6.94%, 9/25/2003........................................................ 39,236 39,236
7.26%, 9/25/2003........................................................ 323,904 323,904
4.95%, 10/25/2005....................................................... 1,416,170 1,416,170
6.23%, 1/25/2007........................................................ 245,701 245,701
6.07%, 4/25/2007........................................................ 1,151,023 1,151,023
7.18%, 6/25/2008........................................................ 749,579 749,579
6.97%, 12/25/2008....................................................... 307,420 307,420
FIRST PRAIRIE MONEY MARKET FUND, MONEY MARKET SERIES
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994
PRINCIPAL
U.S. GOVERNMENT AGENCIES (CONTINUED) AMOUNT VALUE
-------------- --------------
Small Business Administration (continued)
Pool Certificates (a) (continued)
7.06%, 1/25/2009........................................................ $ 889,180 $ 889,180
6.62%, 4/25/2013........................................................ 2,089,913 2,089,913
6.48%, 5/25/2013........................................................ 1,629,428 1,629,428
6.96%, 7/25/2013........................................................ 102,632 102,632
6.49%, 8/25/2013........................................................ 1,674,219 1,674,219
6.37%, 12/25/2013....................................................... 258,254 258,254
7.09%, 12/25/2013....................................................... 2,000,657 2,000,657
7.20%, 1/25/2014........................................................ 998,562 998,562
6.95%, 2/25/2014........................................................ 386,405 386,405
7.09%, 2/25/2014........................................................ 1,398,542 1,398,542
6.03%, 5/25/2014........................................................ 933,741 933,741
7.37%, 7/25/2014........................................................ 1,439,470 1,439,470
--------------
TOTAL U.S. GOVERNMENT AGENCIES
(cost $44,390,440)...................................................... $ 44,390,440
=============
REPURCHASE AGREEMENTS--32.7%
National Westminster Bank USA
5.40%, dated 12/30/94 due 1/3/95 in the amount of $20,012,000
(fully collateralized by $22,480,000 U.S. Treasury Notes
4.75%, due 10/31/98, value $20,353,190)................................. $ 20,000,000 $ 20,000,000
Sanwa Bank Ltd.
5.00%, dated 12/30/94 due 1/3/95 in the amount of $19,010,556
(fully collateralized by $19,756,000 U.S. Treasury Notes
6.50%, due 5/15/97, value $19,369,660).................................. 19,000,000 19,000,000
--------------
TOTAL REPURCHASE AGREEMENTS
(cost $39,000,000)...................................................... $ 39,000,000
=============
TOTAL INVESTMENTS
(cost $118,227,989)............................................ 99.0% $118,227,989
====== =============
CASH AND RECEIVABLES (NET)......................................... 1.0% $ 1,172,029
====== =============
NET ASSETS ................................................... 100.0% $119,400,018
====== =============
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, GOVERNMENT SERIES
STATEMENT OF INVESTMENTS DECEMBER 31, 1994
ANNUALIZED
YIELD ON
DATE OF PRINCIPAL
U.S. TREASURY BILLS--64.0% PURCHASE AMOUNT VALUE
------------ -------------- --------------
<S> <C> <C> <C>
1/5/1995................................................... 4.92% $ 5,000,000 $ 4,997,305
2/9/1995................................................... 4.88 25,000,000 24,869,080
3/2/1995................................................... 5.51 25,000,000 24,773,750
3/16/1995.................................................. 5.54 20,000,000 19,775,944
--------------
TOTAL U.S. TREASURY BILLS
(cost $74,416,079)......................................... $ 74,416,079
=============
U.S. GOVERNMENT AGENCIES--8.1%
Small Business Administration
Pool Certificates (a)
6/25/2013.................................................. 6.37% $ 865,303 $ 865,303
9/25/2014.................................................. 7.00 896,451 896,451
9/25/2016.................................................. 5.86 7,612,193 7,637,083
--------------
TOTAL U.S. GOVERNMENT AGENCIES
(cost $9,398,837).......................................... $ 9,398,837
=============
REPURCHASE AGREEMENTS--35.2%
Barclays De Zoette Wedd
dated 12/30/94, due 1/3/95 in the amount of
$20,012,222 (fully collateralized by
$20,315,000 U.S. Treasury Bill due 2/9/95,
value $20,203,945)......................................... 5.50% $ 20,000,000 $ 20,000,000
National Westminster Bank USA
dated 12/30/94, due 1/3/95 in the amount of
$21,012,600 (fully collateralized by
$22,940,000 U.S. Treasury Notes 5.125%,
due 12/31/98, value $21,420,225)........................... 5.40 21,000,000 21,000,000
--------------
TOTAL REPURCHASE AGREEMENTS
(cost $41,000,000)......................................... $ 41,000,000
=============
TOTAL INVESTMENTS
(cost $124,814,916).............................. 107.3% $124,814,916
====== =============
LIABILITIES, LESS CASH AND RECEIVABLES............... (7.3%) $ (8,462,260)
====== =============
NET ASSETS........................................... 100.0% $116,352,656
====== =============
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, 1994
MONEY MARKET GOVERNMENT
SERIES SERIES
-------------- --------------
<S> <C> <C>
ASSETS:
Investments in securities, at value (including repurchase agreements
of $39,000,000 and $41,000,000 for the Money Market Series and
the Government Series, respectively)_Note 2(a,b)...................... $118,227,989 $124,814,916
Cash.................................................................... 310,439 ---
Interest receivable..................................................... 576,909 111,786
Receivable for investment securities sold............................... 493,453 363,211
Prepaid expenses........................................................ 46,479 10,158
-------------- --------------
119,655,269 125,300,071
-------------- --------------
LIABILITIES:
Due to The First National Bank of Chicago............................... 82,023 62,129
Due to The Dreyfus Corporation.......................................... 78,173 62,950
Due to Custodian........................................................ --- 8,782,836
Accrued expenses........................................................ 95,055 39,500
-------------- --------------
255,251 8,947,415
-------------- --------------
NET ASSETS ..................................................... $119,400,018 $116,352,656
============== =============
REPRESENTED BY:
Paid-in capital......................................................... $120,709,849 $117,334,182
Accumulated net realized (loss) on investments.......................... (1,309,831) (981,526)
-------------- --------------
NET ASSETS at value applicable to 119,423,849 and 116,401,128 shares
outstanding (unlimited number of $.01 par value shares of
Beneficial Interest authorized)......................................... $119,400,018 $116,352,656
============== =============
NET ASSET VALUE, offering and redemption price per share:
Money Market Series
($119,400,018/119,423,849 shares)..................................... $1.00
======
Government Series
($116,352,656/116,401,128 shares)..................................... $1.00
======
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
FIRST PRAIRIE MONEY MARKET FUND
STATEMENT OF OPERATIONS DECEMBER 31, 1994
MONEY MARKET GOVERNMENT
SERIES SERIES
-------------- --------------
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $7,085,656 $5,775,870
-------------- --------------
EXPENSES--Note 2(c):
Management fee_Note 3(a).............................................. $ 859,905 $ 692,452
Shareholder servicing costs_Note 3(b)................................. 583,166 334,170
Professional fees..................................................... 53,306 20,565
Custodian fees........................................................ 40,709 21,630
Prospectus and shareholders' reports_Note 3(b)........................ 22,768 ---
Registration fees..................................................... 8,504 13,361
Trustees' fees and expenses_Note 3(c)................................. 8,325 4,396
Miscellaneous......................................................... 17,023 24,237
-------------- --------------
1,593,706 1,110,811
Less_reduction in management fee due to
undertaking_Note 3(a)............................................. --- 29,785
-------------- --------------
TOTAL EXPENSES.................................................. 1,593,706 1,081,026
-------------- --------------
INVESTMENT INCOME--NET...................................................... 5,491,950 4,694,844
NET REALIZED (LOSS) ON INVESTMENTS--Note 2(b)............................... (1,309,831) (961,178)
-------------- --------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $4,182,119 $3,733,666
============== =============
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,
------------------------------ --------------------------------
1993 1994 1993 1994
--------------- -------------- ---------------- --------------
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income_net.................. $ 5,585,126 $ 5,491,950 $ 11,900,346 $ 4,694,844
Net realized gain (loss) on investments 23,361 (1,309,831) (13,557) (961,178)
--------------- -------------- ---------------- --------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS........ 5,608,487 4,182,119 11,886,789 3,733,666
--------------- -------------- ---------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net.................. (5,585,126) (5,491,950) (11,900,346) (4,694,844)
Net realized gain on investments....... (4,319) (23,361) --- ---
--------------- -------------- ---------------- --------------
TOTAL DIVIDENDS...................... (5,589,445) (5,515,311) (11,900,346) (4,694,844)
--------------- -------------- ---------------- --------------
BENEFICIAL INTEREST TRANSACTIONS
($1.00 per share):
Net proceeds from shares sold.......... 1,739,129,690 1,724,346,455 1,491,641,119 677,021,399
Dividends reinvested................... 2,244,715 2,559,069 564,832 1,310,332
Cost of shares redeemed................ (1,839,635,459)(1,770,081,791) (1,886,311,644) (716,564,214)
--------------- -------------- ---------------- --------------
(DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS. (98,261,054) (43,176,267) (394,105,693) (38,232,483)
--------------- -------------- ---------------- --------------
CAPITAL CONTRIBUTIONS FROM AN AFFILIATE
OF THE ADVISER--Note 3(d).............. --- 1,286,000 --- 933,054
--------------- -------------- ---------------- --------------
TOTAL (DECREASE) IN NET ASSETS. (98,242,012) (43,223,459) (394,119,250) (38,260,607)
NET ASSETS:
Beginning of year...................... 260,865,489 162,623,477 548,732,513 154,613,263
--------------- -------------- ---------------- --------------
End of year............................ $ 162,623,477 $ 119,400,018 $ 154,613,263 $ 116,352,656
=============== ============== ================ ================
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 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........... $1.0000 $1.0000 $1.0000 $1.0000 $1.0001
------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income_net........................ .0734 .0543 .0313 .0274 .0355
Net realized gain (loss) on investments...... -- -- -- .0001 (.0109)
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS........... .0734 .0543 .0313 .0275 .0246
------- ------- ------- ------- -------
DISTRIBUTIONS:
Dividends from investment income_net......... (.0734) (.0543) (.0313) (.0274) (.0355)
Dividends from net realized gain on investments -- -- -- -- (.0002)
------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS........................ (.0734) (.0543) (.0313) (.0274) (.0357)
------- ------- ------- ------- -------
CAPITAL CONTRIBUTIONS FROM AN AFFILIATE
OF THE ADVISER............................. -- -- -- -- .0108
------- ------- ------- ------- -------
Net asset value, end of year................. $1.0000 $1.0000 $1.0000 $1.0001 $ .9998
======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN 7.59% 5.57% 3.18% 2.77% 3.63%*
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .96% .97% .98% .94% 1.02%
Ratio of net investment income to average
net assets................................. 7.33% 5.42% 3.17% 2.73% 3.51%
Decrease reflected in above expense ratios due
to expense reimbursements.................. -- -- -- .05% --
Net Assets, end of year (000's Omitted)...... $414,258 $456,791 $260,865 $162,623 $119,400
- -------------------------------
* Had the Series not had a capital contribution by the advisor during
the period, the total return would have been 2.61%.
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 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........... $1.0000 $1.0000 $1.0000 $1.0000 $ .9999
------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income_net........................ .0715 .0498 .0283 .0249 .0379
Net realized (loss) on investments........... -- -- -- (.0001) (.0083)
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS........... .0715 .0498 .0283 .0248 .0296
------- ------- ------- ------- -------
DISTRIBUTIONS:
Dividends from investment income_net......... (.0715) (.0498) (.0283) (.0249) (.0379)
Dividends from net realized gain
on investments............................. -- -- -- -- --
------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS........................ (.0715) (.0498) (.0283) (.0249) (.0379)
------- ------- ------- ------- -------
CAPITAL CONTRIBUTIONS FROM AN AFFILIATE
OF THE ADVISER............................. -- -- -- -- .0080
------- ------- ------- ------- -------
Net asset value, end of year................. $1.0000 $1.0000 $1.0000 $ .9999 $ .9996
======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN 7.39% 5.10% 2.87% 2.52% 3.86%*
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .93% .90% .91% .74% .86%
Ratio of net investment income to average
net assets................................. 7.09% 4.97% 2.87% 2.48% 3.73%
Decrease reflected in above expense ratios due
to expense reimbursements.................. -- -- -- .14% .02%
Net Assets, end of year (000's Omitted)...... $777,257 $990,897 $548,733 $154,613 $116,353
- -------------------------------
* Had the Series not had a capital contribution by the advisor during
the period, the total return would have been 2.83%.
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, a wholly-owned subsidiary of
Dreyfus, until August 24, 1994, acted as the distributor of the Fund's
shares, which are sold without a sales load. Effective August 24, 1994,
Dreyfus 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 for each series; 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.
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 on a pro rata basis.
(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
FIRST PRAIRIE MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 and
excise taxes.
The Money Market Series has an unused capital loss carryover of
approximately $1,302,000 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 1995. If not applied, the
carryover expires in 2002.
The Government Series has an unused capital loss carryover of
approximately $980,000 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 1995. If not applied, $3,000 of the
carryover expires in 2000 and $977,000 expires in 2002.
At December 31, 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 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 has undertaken from November 2,
1994, with respect to the Government Series, to reduce the management fee
paid by the Series, to the extent that the Series' aggregate expenses (excludi
ng certain expenses as described above) exceeded .40 of 1% of the Series'
average daily net assets. The reduction in management fee for the year ended
December 31, 1994, pursuant to the undertaking amounted to $29,785.
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)
FIRST PRAIRIE MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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, 1994, the Money Market Series and the
Government Series were charged $403,119 and $317,581, respectively, 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
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) During the fiscal year ended December 31, 1994, an affiliate of the
Fund's Adviser purchased securities from the Fund at an amount in excess of
the secruities' fair market value. The Fund recorded a realized loss on these
sales in the amount of $1,286,000 and $933,054 on the Money Market Series and
the Government Series, respectively, and the Fund recorded an offsetting
capital contribution from the affiliate.
NOTE 4--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 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 MONEY MARKET FUND
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
FIRST PRAIRIE MONEY MARKET FUND
We have audited the accompanying statement of assets and liabilities,
including the statements of investments, of First Prairie Money Market Fund
(comprising, respectively, the Money Market Series and the Government Series)
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
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 each of the respective series constituting the First Prairie
Money Market Fund, at December 31, 1994, 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.
(Ernst & Young LLP Signature Logo)
New York, New York
February 7, 1995
FIRST PRAIRIE
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. 368/711AR9412
FIRST
(First Prairie Logo)
PRAIRIE
MONEY MARKET
FUND
ANNUAL REPORT
DECEMBER 31, 1994
