<PAGE>
A N N U A L R E P O R T
MAY 31, 1996
MONEY MARKET FUNDS
------------------
CASH INVESTMENT FUND
U.S. GOVERNMENT FUND
TREASURY FUND
READY CASH INVESTMENT FUND
MUNICIPAL MONEY MARKET FUND
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TABLE OF CONTENTS MAY 31, 1996
<TABLE>
<S> <C>
A MESSAGE TO OUR SHAREHOLDERS.......................................................................... 1
INVESTMENT ADVISER'S REPORT
Cash Investment Fund............................................................................ 2
U.S. Government Fund............................................................................ 2
Treasury Fund................................................................................... 2
Ready Cash Investment Fund...................................................................... 2
Municipal Money Market Fund..................................................................... 2
INDEPENDENT AUDITORS' REPORT (NORWEST ADVANTAGE FUNDS)................................................. 3
FINANCIAL STATEMENTS OF NORWEST ADVANTAGE FUNDS
Statements of Assets and Liabilities............................................................ 4
Statements of Operations........................................................................ 5
Statements of Changes in Net Assets............................................................. 6
Notes to Financial Statements................................................................... 7
Financial Highlights............................................................................ 11
Portfolios of Investments
Cash Investment Fund..................................................................... 13
U.S. Government Fund..................................................................... 16
Treasury Fund............................................................................ 19
Ready Cash Investment Fund............................................................... 19
Municipal Money Market Fund.............................................................. 23
</TABLE>
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A MESSAGE TO OUR SHAREHOLDERS MAY 31, 1996
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July 12, 1996
Dear Shareholders:
We are pleased to present the May 31, 1996 annual report
for the Norwest Advantage Funds. This report includes five
of the twenty-six Norwest Advantage Funds portfolios. The
twenty-one Norwest Advantage Funds stock and bond
portfolios are reported separately.
The money markets performed moderately well over the past
year providing investors a quieter year than they
experienced in the stock and bond markets. Interest rates
on the benchmark 90-day U.S. Treasury bill ended the year
70 basis points lower than the end of the prior fiscal
period. This decrease occurred throughout the first half
of the fiscal year with interest rates stabilizing during
the second half.
Norwest Advantage Funds experienced significant growth
over the last year with net assets increasing from one
year ago by 50% to over twelve billion dollars on May 31,
1996. In a recent ranking by size of assets under
management, Norwest Advantage Funds ranked eighth among
bank-advised mutual funds and forty-fourth among all (more
than 300) mutual fund complexes. This success is the
result of the continued positive performance of the
Norwest Advantage Funds and the confidence and support of
the shareholders of the funds.
If you have any questions or would like additional
information about the Norwest Advantage Funds, please call
800-338-1348 or 612-667-8833 (press 1). Thank you for
choosing to invest with Norwest Advantage Funds.
Sincerely,
[SIG]
John Y. Keffer
CHAIRMAN, NORWEST ADVANTAGE FUNDS
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INVESTMENT ADVISER'S REPORT MAY 31, 1996
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CASH INVESTMENT FUND
- --------------------------------------------------------------------------------
U.S. GOVERNMENT FUND
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TREASURY FUND
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READY CASH INVESTMENT FUND MANAGED BY: DAVE SYLVESTER/LAURIE WHITE
At June 1, 1995, the beginning of this fiscal year, the short end of the yield
curve was flat with a bias toward inversion. As some general indicators of money
market interest rate levels, Fed Funds stood at 6.00% and three-month Treasury
bills were at 5.80%. This general flatness continued to be the case throughout
the summer and fall; however, in mid-November, the short end of the yield curve
did invert, and remained inverted until the end of February. As signs began to
emerge that the economy was perhaps not growing as quickly as originally
anticipated, the Fed began a series of three easing moves, lowering the Fed
Funds target from 6.00% to 5.75% in July, 5.50% in December and 5.25% in
January. As a result, the yield curve itself began to steepen. The three-month
Treasury bill yield fell 62 basis points to 5.18%, while the yield on the
one-year Treasury bill only fell 5 basis points to end at 5.74%. Consequently,
the spread between three-month bills and one-year bills went from less than 1
basis point at the beginning of the fiscal year to 56 basis points at the end of
the fiscal year. Similarly, the corporate yield curve experienced the same type
of steepening, with yields on the three-month LIBOR rate falling 56 basis points
to 5.4375% while the one year LIBOR rate remained constant at 5.9375%.
The strategy that we implemented at the end of 1994 of shortening the average
lives of the Funds continued to serve us well throughout a majority of 1995 and
1996. However, as the yield curves began to steepen during the second quarter of
1996, we began to selectively purchase more longer term securities as they
became cheap relative to their targets. This had the effect of modestly
lengthening the average lives of the Funds while still allowing the Funds to
produce superior returns. Looking forward over the next year, we anticipate the
steep yield curve will commit us to keeping the average lives of the Funds
relatively long, and selectively purchasing longer term obligations despite an
increasing interest rate environment.
- --------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND MANAGED BY: DAVE SYLVESTER
With interest rates declining during fiscal year 1996, the Fund extended the
average maturity from 35 days to 65 days. By making purchases out on the yield
curve, the Fund was able to capture higher returns. In addition, the interest
rate environment for variable rate demand notes increased slightly throughout
fiscal 1996 as the Public Securities Association Swap Index increased, on
average, 20 basis points from 3.46% to 3.66%. Therefore, the Fund has maintained
its overall strategy of investing a significant portion in variable rate demand
notes that, in turn, has allowed the Fund's performance to remain strong.
According to Lipper Analytical Services, Inc., for the year ended May 31, 1996,
the Fund's Institutional Share class was ranked 20 out of 65 with a total return
of 3.52% versus a mean of 3.39%. The Fund's Investor Share class was ranked 19
out of 133 with a total return of 3.31% versus a mean of 3.14%.
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INDEPENDENT AUDITORS' REPORT MAY 31, 1996
The Board of Trustees and Shareholders
Norwest Advantage Funds
We have audited the accompanying statements of assets and
liabilities, including the portfolios of investments of
Cash Investment Fund, U.S. Government Fund, Treasury Fund,
Ready Cash Investment Fund and Municipal Money Market
Fund, portfolios of Norwest Advantage Funds (the Funds) as
of May 31, 1996, the related statements of operations for
the year then ended, changes in net assets for each of the
years in the two-year period then ended and financial
highlights for each of the years in the three-year period
then ended. These financial statements and financial
highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on
these financial statements and financial highlights based
on our audits. The financial highlights for each of the
years or periods ended on or before May 31, 1993 were
audited by other auditors whose report dated July 20, 1993
expressed an unqualified opinion on those financial
highlights.
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 May 31, 1996 by correspondence with
the custodian and brokers. 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 present fairly, in all material respects, the
financial position of Cash Investment Fund, U.S.
Government Fund, Treasury Fund, Ready Cash Investment Fund
and Municipal Money Market Fund, portfolios of Norwest
Advantage Funds, at May 31, 1996, results of their
operations for the year then ended, changes in their net
assets for each of the years in the two-year period then
ended, and financial highlights for each of the years in
the three-year period then ended, in conformity with
generally accepted accounting principles.
KPMG Peat Marwick LLP
Boston, Massachusetts
July 19, 1996
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STATEMENTS OF ASSETS AND LIABILITIES MAY 31, 1996
<TABLE>
<CAPTION>
MUNICIPAL
CASH INVESTMENT U.S. GOVERNMENT TREASURY READY CASH MONEY MARKET
FUND FUND FUND INVESTMENT FUND FUND
--------------- --------------- ------------ --------------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value(a)................... $1,730,834,129 $1,156,907,502 $779,943,789 $1,551,553,415 $650,471,194
Repurchase Agreements...................... - 495,781,386 - - -
Cash....................................... - 637 3,882 6,384 1,240,563
Interest and other receivables............. 11,029,487 3,667,145 2,317,360 8,470,742 5,608,467
Receivable for securities sold............. - - 72,098,049 - 500,320
Receivable for principal paydowns.......... 20,640 - - 90,948 -
--------------- --------------- ------------ --------------- -------------
TOTAL ASSETS................................. 1,741,884,256 1,656,356,670 854,363,080 1,560,121,489 657,820,544
--------------- --------------- ------------ --------------- -------------
LIABILITIES:
Payable for securities purchased........... - - 49,892,188 - 6,500,609
Accrued advisory fees...................... 208,909 204,330 115,307 456,296 157,638
Accrued management fees.................... 126,304 164,176 26,248 96,096 64,788
Accrued transfer agency fees............... 360,124 351,202 148,062 156,900 33,185
Accrued custodial fees..................... 15,856 15,475 8,056 14,497 6,706
Accrued expenses and other liabilities..... 102,222 72,066 35,535 143,028 70,283
Dividends payable.......................... 1,521,905 5,828,670 1,867,447 4,991,993 1,530,504
--------------- --------------- ------------ --------------- -------------
TOTAL LIABILITIES............................ 2,335,320 6,635,919 52,092,843 5,858,810 8,363,713
--------------- --------------- ------------ --------------- -------------
NET ASSETS................................... $1,739,548,936 $1,649,720,751 $802,270,237 $1,554,262,679 $649,456,831
--------------- --------------- ------------ --------------- -------------
--------------- --------------- ------------ --------------- -------------
COMPONENTS OF NET ASSETS:
Capital paid in............................ $1,741,225,889 $1,649,992,980 $802,167,741 $1,554,329,554 $650,748,495
Unrealized depreciation.................... - - - - (1,200,000)
Accumulated net realized gains (losses).... (1,676,953) (272,229) 102,496 (66,875) (91,664)
--------------- --------------- ------------ --------------- -------------
NET ASSETS................................... $1,739,548,936 $1,649,720,751 $802,270,237 $1,554,262,679 $649,456,831
--------------- --------------- ------------ --------------- -------------
--------------- --------------- ------------ --------------- -------------
NET ASSETS BY SHARE CLASS:
Single class funds......................... $1,739,548,936 $1,649,720,751 $802,270,237 $ - $ -
Investor Shares............................ - - - 473,878,907 57,020,972
Exchange Shares............................ - - - 128,886 -
Institutional Shares....................... - - - 1,080,254,886 592,435,859
--------------- --------------- ------------ --------------- -------------
NET ASSETS................................... $1,739,548,936 $1,649,720,751 $802,270,237 $1,554,262,679 $649,456,831
--------------- --------------- ------------ --------------- -------------
--------------- --------------- ------------ --------------- -------------
SHARES OF BENEFICIAL INTEREST; NO PAR VALUE:
Single class funds......................... 1,741,298,389 1,650,092,980 802,167,741 - -
--------------- --------------- ------------ --------------- -------------
--------------- --------------- ------------ --------------- -------------
Investor Shares............................ - - - 473,899,436 57,035,676
--------------- --------------- ------------ --------------- -------------
--------------- --------------- ------------ --------------- -------------
Exchange Shares............................ - - - 128,922 -
--------------- --------------- ------------ --------------- -------------
--------------- --------------- ------------ --------------- -------------
Institutional Shares....................... - - - 1,080,313,548 592,522,620
--------------- --------------- ------------ --------------- -------------
--------------- --------------- ------------ --------------- -------------
NET ASSET VALUE PER SHARE:
All share classes.......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------------- --------------- ------------ --------------- -------------
--------------- --------------- ------------ --------------- -------------
(a) Cost of investments...................... $1,730,834,129 $1,156,907,502 $779,943,789 $1,551,553,415 $651,671,194
</TABLE>
See notes to financial statements.
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STATEMENTS OF OPERATIONS (YEAR ENDED MAY 31, 1996)
<TABLE>
<CAPTION>
CASH U.S. READY CASH MUNICIPAL
INVESTMENT GOVERNMENT TREASURY INVESTMENT MONEY MARKET
FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income............................ $97,053,226 $85,094,816 $40,978,423 $68,172,540 $21,519,881
------------ ------------ ------------ ------------ ------------
EXPENSES:
Advisory................................... 2,383,128 2,205,102 1,308,984 4,128,532 1,907,103
Management................................. 1,076,303 1,002,126 627,992 2,330,332 1,106,056
Transfer agent:
Single class funds....................... 4,131,516 3,760,630 1,897,286 - -
Investor Shares.......................... - - - 951,223 144,117
Exchange Shares.......................... - - - 341 -
Institutional Shares..................... - - - 784,541 495,382
Custodian.................................. 180,261 165,425 90,891 131,517 70,303
Legal...................................... 60,555 69,409 30,322 57,021 41,626
Filing..................................... 167,250 242,706 160,808 410,678 173,879
Accounting................................. 49,000 46,000 43,500 63,000 72,500
Auditing................................... 18,358 19,375 13,108 13,856 14,210
Trustees................................... 32,561 29,625 15,387 22,356 11,347
Distribution-Exchange Shares............... - - - 1,023 -
Other...................................... 78,682 103,643 56,706 71,789 75,382
------------ ------------ ------------ ------------ ------------
Total expenses 8,177,614 7,644,041 4,244,984 8,966,209 4,111,905
Expenses reimbursed and fees waived
voluntarily.............................. (176,592) (56,818) (724,161) (2,009,636) (1,475,373)
------------ ------------ ------------ ------------ ------------
Net expenses................................. 8,001,022 7,587,223 3,520,823 6,956,573 2,636,532
------------ ------------ ------------ ------------ ------------
NET INVESTMENT INCOME........................ 89,052,204 77,507,593 37,457,600 61,215,967 18,883,349
------------ ------------ ------------ ------------ ------------
NET REALIZED GAIN ON INVESTMENTS............. 490,336 254,457 284,133 2,735 -
------------ ------------ ------------ ------------ ------------
INCREASE IN NET ASSETS FROM OPERATIONS....... $89,542,540 $77,762,050 $37,741,733 $61,218,702 $18,883,349
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
</TABLE>
See notes to financial statements.
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STATEMENTS OF CHANGES IN NET ASSETS (YEARS ENDED MAY 31, 1995 AND 1996)
<TABLE>
<CAPTION>
CASH INVESTMENT U.S. GOVERNMENT READY CASH MUNICIPAL MONEY
FUND FUND TREASURY FUND INVESTMENT FUND MARKET FUND
----------------- --------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C>
NET ASSETS -- MAY 31, 1994......... $ 1,381,401,842 $1,091,140,740 $ 526,482,768 $ 497,752,563 $ 223,909,511
OPERATIONS:
Net investment income............ 67,650,548 50,247,378 29,859,162 27,481,671 9,389,872
Net realized gain (loss) on
investments.................... (889,228) (526,904) 163,786 (69,633) (39,388)
Change in unrealized depreciation
on investments................. - - - - (1,200,000)
----------------- --------------- ---------------- ---------------- ----------------
66,761,320 49,720,474 30,022,948 27,412,038 8,150,484
----------------- --------------- ---------------- ---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income -- Single
class funds.................... (67,650,548) (50,247,378) (29,859,162) - -
Net investment income -- Investor
Shares......................... - - - (9,075,639) (1,283,965)
Net investment income -- Exchange
Shares......................... - - - (7,558) -
Net investment income --
Institutional Shares........... - - - (18,398,474) (8,105,907)
Realized gain on investments --
Single class funds............. - (173,918) - - -
Realized gain on investments --
Investor Shares................ - - - (7,537) -
Realized gain on investments --
Exchange Shares................ - - - (6) -
Realized gain on investments --
Institutional Shares........... - - - (13,874) -
----------------- --------------- ---------------- ---------------- ----------------
(67,650,548) (50,421,296) (29,859,162) (27,503,088) (9,389,872)
----------------- --------------- ---------------- ---------------- ----------------
CAPITAL SHARE TRANSACTIONS:(a)
Sale of shares -- Single class
funds.......................... 12,602,596,403 5,940,912,543 3,390,161,959 - -
Sale of shares -- Investor
Shares......................... - - - 599,200,073 140,791,278
Sale of shares -- Exchange
Shares......................... - - - 229,572 -
Sale of shares -- Institutional
Shares......................... - - - 1,465,894,906 1,449,036,966
Reinvested dividends -- Single
class funds.................... 44,264,813 13,709,922 12,227,733 - -
Reinvested dividends -- Investor
Shares......................... - - - 8,269,655 1,206,491
Reinvested dividends -- Exchange
Shares......................... - - - 7,094 -
Reinvested dividends --
Institutional Shares........... - - - 35,387 2,619,533
Cost of shares repurchased --
Single class funds............. (12,563,069,929) (5,885,641,030) (3,267,938,679) - -
Cost of shares repurchased --
Investor Shares................ - - - (502,974,022) (128,120,128)
Cost of shares repurchased --
Exchange Shares................ - - - (227,749) -
Cost of shares repurchased --
Institutional Shares........... - - - (1,293,090,276) (1,363,027,207)
Capital contribution from
Adviser........................ - - - - 1,200,000
----------------- --------------- ---------------- ---------------- ----------------
83,791,287 68,981,435 134,451,013 277,344,640 103,706,933
----------------- --------------- ---------------- ---------------- ----------------
NET ASSETS -- MAY 31, 1995......... 1,464,303,901 1,159,421,353 661,097,567 775,006,153 326,377,056
----------------- --------------- ---------------- ---------------- ----------------
OPERATIONS:
Net investment income............ 89,052,204 77,507,593 37,457,600 61,215,967 18,883,349
Net realized gain on
investments.................... 490,336 254,457 284,133 2,735 -
----------------- --------------- ---------------- ---------------- ----------------
89,542,540 77,762,050 37,741,733 61,218,702 18,883,349
----------------- --------------- ---------------- ---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income -- Single
class funds.................... (89,052,204) (77,507,593) (37,457,600) - -
Net investment income -- Investor
Shares......................... - - - (19,184,887) (1,883,550)
Net investment income -- Exchange
Shares......................... - - - (5,918) -
Net investment income --
Institutional Shares........... - - - (42,025,162) (16,999,799)
----------------- --------------- ---------------- ---------------- ----------------
(89,052,204) (77,507,593) (37,457,600) (61,215,967) (18,883,349)
----------------- --------------- ---------------- ---------------- ----------------
CAPITAL SHARE TRANSACTIONS:(a)
Sale of shares -- Single class
funds.......................... 15,533,974,038 8,689,610,881 5,417,106,078 - -
Sale of shares -- Investor
Shares......................... - - - 972,589,473 123,308,710
Sale of shares -- Exchange
Shares......................... - - - 10,333 -
Sale of shares -- Institutional
Shares......................... - - - 2,418,720,030 2,165,513,879
Reinvested dividends -- Single
class funds.................... 73,206,956 17,484,474 16,539,657 - -
Reinvested dividends -- Investor
Shares......................... - - - 20,298,681 2,020,283
Reinvested dividends -- Exchange
Shares......................... - - - 6,534 -
Reinvested dividends --
Institutional Shares........... - - - 17,499 19,032,125
Cost of shares repurchased --
Single class funds............. (15,332,426,295) (8,217,050,414) (5,292,757,198) - -
Cost of shares repurchased --
Investor Shares................ - - - (787,613,307) (115,732,342)
Cost of shares repurchased --
Exchange Shares................ - - - (47,612) -
Cost of shares repurchased --
Institutional Shares........... - - - (1,844,727,840) (1,871,062,880)
----------------- --------------- ---------------- ---------------- ----------------
274,754,699 490,044,941 140,888,537 779,253,791 323,079,775
----------------- --------------- ---------------- ---------------- ----------------
NET ASSETS -- MAY 31, 1996......... $ 1,739,548,936 $1,649,720,751 $ 802,270,237 $ 1,554,262,679 $ 649,456,831
----------------- --------------- ---------------- ---------------- ----------------
----------------- --------------- ---------------- ---------------- ----------------
</TABLE>
(a) Share transactions at net asset value of $1.00 per share.
See notes to financial statements.
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NOTES TO FINANCIAL STATEMENTS MAY 31, 1996
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NOTE 1. ORGANIZATION
Norwest Advantage Funds (the "Trust") is registered as an open-end management
investment company. The Trust currently has twenty-six separate investment
portfolios. These financial statements relate to the five money market
investment portfolios of the Trust (each a "Fund"), each of which is a
diversified portfolio. The Funds (and classes thereof) commenced operations on
the following dates:
<TABLE>
<S> <C>
Cash Investment Fund.................................................................. October 14, 1987
U.S. Government Fund.................................................................. November 16, 1987
Treasury Fund......................................................................... December 3, 1990
Ready Cash Investment Fund (Investor Shares).......................................... January 20, 1988
Ready Cash Investment Fund (Exchange Shares).......................................... May 9, 1994
Ready Cash Investment Fund (Institutional Shares)..................................... January 4, 1994
Municipal Money Market Fund (Investor Shares)......................................... January 7, 1988
Municipal Money Market Fund (Institutional Shares).................................... August 3, 1993
</TABLE>
Each share of each class represents an undivided, proportionate interest in a
Fund. The Trust Instrument authorizes the issuance, by each Fund, of an
unlimited number of shares of beneficial interest without par value. Exchange
Shares are sold only through the exchange privilege available to shareholders of
B Shares of the various fixed income and equity funds of the Trust and are
subject to a contingent deferred sales charge upon redemption. Shareholders of
Institutional Shares and Investor Shares incur no sales charge. The difference
between these two classes is the minimum investment required and the level of
transfer agent expenses.
Prior to July 31, 1993, the Trust's operation was conducted as Prime Value
Funds, Inc., a Maryland corporation. On October 1, 1995, the Trust changed its
name from Norwest Funds to Norwest Advantage Funds.
FINANCIAL STATEMENT PERIODS AND CHANGE OF FISCAL YEAR-For certain share classes,
the earliest period presented in the financial highlights reflects operations
for the period beginning with the commencement date above through the date of
its then fiscal year end, as noted. Otherwise, a full year is presented.
Effective May 31, 1992, the Funds elected to change their fiscal year end to May
31. Prior to May 31, 1992, the fiscal year end was November 30.
- --------------------------------------------------------------------------------
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Funds' financial statements are prepared in accordance with generally
accepted accounting principles which permit management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of increase and decrease in net assets from
operations during the period. Actual results could differ from those estimates
and are expected to be immaterial to the net assets of the Funds.
SECURITY VALUATION-The Funds value securities utilizing the amortized cost
method pursuant to Rule 2a-7 under the Investment Company Act of 1940. Under
this method all investments purchased at a discount or premium are valued by
accreting or amortizing, respectively, the difference between the purchase price
and maturity value of the issue over the period to maturity.
INTEREST INCOME AND DIVIDENDS TO SHAREHOLDERS-Interest income is accrued as
earned. Dividends to shareholders of net investment income are declared daily
and paid monthly by each Fund. Net capital gain, if any, is distributed at least
annually to shareholders.
Distributions from net investment income and realized capital gain are based on
amounts calculated in accordance with applicable income tax regulations. Any
differences between financial statement amounts available for distribution and
distributions made in accordance with income tax regulations are primarily
attributable to certain income tax calculations being based on an October 31
year end and the utilization of capital loss carryovers.
EXPENSE ALLOCATION-Expenses are allocated in accordance with procedures adopted
by the Board of Trustees (the "Board"). Certain expenses are allocated to the
various share classes on the basis of usage of services or contractual
agreements. The Funds' class specific expenses include distribution expenses, if
any, transfer agent fees and expenses, and certain other expenses that are
solely attributable to a class.
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NOTES TO FINANCIAL STATEMENTS (CONTINUED) MAY 31, 1996
- --------------------------------------------------------------------------------
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
REALIZED GAINS AND LOSSES-Security transactions are accounted for on a trade
date basis. Realized gains and losses on investments sold are recorded on the
basis of identified cost.
FEDERAL INCOME TAX-Each Fund has qualified, and intends to continue to qualify,
as a regulated investment company and distribute all of its taxable income.
Therefore, each Fund is not subject to Federal income tax. As of May 31, 1996,
certain of the Funds had capital loss carryovers available to offset future
capital gains as follows:
<TABLE>
<CAPTION>
YEAR OF EXPIRATION
--------------------
2003 2004 TOTAL
--------- --------- ---------
<S> <C> <C> <C>
Cash Investment Fund............................................. $1,676,770 $ - $1,676,770
U.S. Government Fund............................................. 272,447 - 272,447
Ready Cash Investment Fund....................................... 64,592 - 64,592
Municipal Money Market Fund...................................... 72,404 15,350 87,754
</TABLE>
REPURCHASE AGREEMENTS-Each Fund may purchase portfolio securities from financial
institutions deemed to be creditworthy by the Fund's investment adviser subject
to the seller's agreement to repurchase and the Fund's agreement to resell the
securities. Securities received as collateral in connection with the repurchase
agreements are maintained by the Trust and must have, at all times, an aggregate
market value greater than or equal to the repurchase price plus accrued
interest. If the value of the collateral falls below the value of the repurchase
price plus accrued interest, the Funds require the seller to deposit additional
collateral by the next business day. In the event that the seller under the
agreement defaults on its repurchase obligation or fails to deposit sufficient
collateral, the Funds have the contractual right, subject to the requirements of
applicable bankruptcy and insolvency laws, to sell the underlying securities at
market value and may claim any resulting loss from the seller. For certain
demand agreements, there is no agreed upon repurchase date and interest payments
are calculated daily based on the agreed upon repurchase rate.
VARIABLE RATE SECURITIES-For variable rate securities, the interest rate varies
to reflect current market conditions. The rate shown is the effective rate on
May 31, 1996. The maturity date shown represents the final maturity. For
purposes of Rule 2a-7, securities generally are deemed to have a maturity of the
date noted on the face of the instrument, except that certain variable rate
government and short-term corporate securities are deemed to have a maturity at
the date of the next readjustment of the interest rate and certain securities
with demand features are deemed to have a maturity of the longer of the demand
period or the period remaining until the next readjustment of the interest rate.
- --------------------------------------------------------------------------------
NOTE 3. ADVISORY, SERVICING FEES AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISER-The investment adviser of each Fund is Norwest Investment
Management (the "Adviser"), a part of Norwest Bank Minnesota, N.A. ("Norwest").
Norwest is a subsidiary of Norwest Corporation. The Adviser receives an advisory
fee from Cash Investment Fund, U.S. Government Fund, Treasury Fund and Ready
Cash Investment Fund at annual rates of 0.20%, 0.20%, 0.20% and 0.40%,
respectively, of the average daily net assets for the first $300 million of net
assets of each Fund, declining to 0.12%, 0.12%, 0.12% and 0.32%, respectively,
of the average daily net assets of each Fund's net assets in excess of $700
million. The Adviser receives an advisory fee from Municipal Money Market Fund
at an annual rate of 0.35% of the average daily net assets for the first $500
million of net assets of the Fund, declining to 0.30% of the average daily net
assets of the Fund's net assets in excess of $1 billion.
The Adviser has agreed to reimburse each Fund for certain operating expenses
(exclusive of interest, taxes, brokerage fees, fees and other expenses paid
pursuant to any distribution plan and organization expenses, all to the extent
permitted by applicable state law or regulation) which in any year exceed the
limits prescribed by any state in which the Fund's shares are qualified for
sale. The Funds' annual expenses are estimated and accrued daily, and any
related reimbursements are made monthly by the Adviser.
During the year ended May 31, 1995, the Municipal Money Market Fund obtained an
$8,500,000 non-transferable Letter of Credit ("LOC") from Trust Company Bank
which supports the payment of principal and interest on the Orange County Bond,
due to expire on June 30, 1996, held by the Fund. The Adviser has agreed to
reimburse Trust Company Bank for any payments made by it to the Fund. As of May
31, 1996, no payments were received from Trust Company Bank in connection with
this LOC. On June 12, 1996, the Orange County Bond was called at par.
MANAGEMENT AND DISTRIBUTION SERVICES-As manager of the Trust, Forum Financial
Services, Inc. ("Forum"), a registered broker-dealer and a member of the
National Association of Securities Dealers, Inc., provides administrative
services to the Funds. For its services, Forum receives a management fee from
Cash Investment Fund, U.S. Government Fund and Treasury Fund at an annual rate
of 0.10% of the average daily net assets for the first $300 million of each
Fund's net assets, declining to 0.05% of the average
[LOGO]
8
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED) MAY 31, 1996
- --------------------------------------------------------------------------------
NOTE 3. ADVISORY, SERVICING FEES AND OTHER TRANSACTIONS WITH
AFFILIATES (CONTINUED)
daily net assets for each Fund's net assets in excess of $700 million. Forum
receives a management fee from Ready Cash Investment Fund and Municipal Money
Market Fund at an annual rate of 0.20% of the average daily net assets of each
Fund attributable to each class of each Fund's shares. In addition, certain
legal expenses were charged to the Trust by Forum. The respective amounts of
legal expenses for the year ended May 31, 1996 for Cash Investment Fund, U.S.
Government Fund, Treasury Fund, Ready Cash Investment Fund and Municipal Money
Market Fund were: $24,671, $22,202, $11,521, $16,134 and $7,245.
Forum Financial Corp. ("FFC"), an affiliate of Forum, provides fund accounting
services to the Funds. For these services, FFC receives a fee of $36,000 per
year per Fund plus certain amounts based upon the number of classes and number
and types of portfolio transactions within each Fund.
Norwest serves as the Trust's transfer agent, dividend disbursing agent and
custodian, and is compensated for those services at an aggregate annual rate of
up to 0.28% of the average daily net assets of Cash Investment Fund, U.S.
Government Fund and Treasury Fund; of up to 0.10% of the average daily net
assets of Ready Cash Investment Fund and Municipal Money Market Fund
attributable to Institutional Shares; and of up to 0.30% of the average daily
net assets attributable to the other classes of Ready Cash Investment Fund and
Municipal Money Market Fund.
The Trust has adopted a Distribution Plan (the "Plan") with respect to Exchange
Shares of Ready Cash Investment Fund pursuant to Rule 12b-1 under the Investment
Company Act of 1940. The Plan authorizes the payment to Forum of an annual
distribution service fee of 0.75% of the average daily net assets, and a
maintenance fee of 0.25% of the average daily net assets, of Ready Cash
Investment Fund attributable to Exchange Shares. No maintenance fees were
incurred by the Fund during the year ended May 31, 1996. The distribution
payments will be used to reimburse the distributor for (i) sales commissions at
levels set from time to time by the Board not to exceed 6.25% of the amount
received by the Fund for each Exchange share sold (excluding reinvestment of
dividends and distributions) and (ii) interest calculated by applying the rate
of 1% over the prime rate to the outstanding balance of unreimbursed
distribution charges. The current sales commission rate is based upon that rate
in effect for the fixed income or equity fund from which the shareholder
exchanged its shares. The Plan may be terminated by vote of a majority of the
Fund's shareholders or by vote of a majority of Trustees who do not have any
direct or indirect financial interest in the Plan. In the event that the Plan is
terminated or not continued, at the discretion of the Board of Trustees, the
Fund may continue to pay distribution service fees to Forum (but only with
respect to sales that occurred prior to the termination or discontinuance of the
Plan) until the earlier of (a) four years after the date of termination or
discontinuance or (b) such time as there exist no unreimbursed distribution
charges attributable to that Fund under the Plan, as calculated pursuant to the
Plan. Unreimbursed distribution charges at May 31, 1996 for Ready Cash
Investment Fund were $1,356.
VOLUNTARY WAIVERS AND REIMBURSEMENTS-For the year ended May 31, 1996, fees
waived and expenses reimbursed by the Trust's service providers were as follows:
<TABLE>
<CAPTION>
FEES WAIVED EXPENSES
------------------------------------ REIMBURSED
CUSTODIAN AND -------------
TRANSFER AGENT ADVISER FORUM FORUM
-------------- --------- --------- -------------
<S> <C> <C> <C> <C>
Cash Investment Fund........................... $ 15,633 $ - $ 160,959 $ -
U.S. Government Fund........................... 15,869 - 40,949 -
Treasury Fund.................................. 275,320 - 448,841 -
Ready Cash Investment Fund..................... 272,876 44,547 1,630,790 61,423
Municipal Money Market Fund.................... 291,514 303,321 880,538 -
</TABLE>
- --------------------------------------------------------------------------------
NOTE 4. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales (including maturities) of securities
during the year ended May 31, 1996 were as follows:
<TABLE>
<CAPTION>
COST PROCEEDS
OF PURCHASES FROM SALES
----------------- -----------------
<S> <C> <C>
Cash Investment Fund............................................................. $ 57,290,403,779 $ 57,046,730,921
U.S. Government Fund............................................................. 80,351,780,942 79,903,186,295
Treasury Fund.................................................................... 12,740,233,992 12,653,636,503
Ready Cash Investment Fund....................................................... 40,705,214,236 39,971,036,340
Municipal Money Market Fund...................................................... 2,817,681,289 2,495,116,252
</TABLE>
The cost basis for federal income tax purposes is the same as for financial
accounting purposes.
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9
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONCLUDED) MAY 31, 1996
- --------------------------------------------------------------------------------
NOTE 5. FEDERAL TAX STATUS OF DIVIDENDS DECLARED DURING THE FISCAL YEAR
(UNAUDITED)
INCOME DIVIDENDS-All of the income dividends paid by Municipal Money Market Fund
were of exempt interest.
All income dividends of Cash Investment Fund, U.S. Government Fund, Treasury
Fund, and Ready Cash Investment Fund were ordinary income for federal income tax
purposes.
CAPITAL GAIN DIVIDENDS-No long term capital gains were declared.
[LOGO]
10
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS MAY 31, 1996
- --------------------------------------------------------------------------------
SELECTED DATA FOR A SHARE OUTSTANDING DURING THE PERIOD
<TABLE>
<CAPTION>
BEGINNING NET REALIZED DIVIDENDS DISTRIBUTIONS
NET ASSET NET AND UNREALIZED FROM NET FROM NET
VALUE PER INVESTMENT GAIN (LOSS) ON INVESTMENT REALIZED
SHARE INCOME INVESTMENTS INCOME GAINS
--------- ---------- -------------- ---------- -------------
<S> <C> <C> <C> <C> <C>
CASH INVESTMENT FUND
Year Ended May 31,
1996.................................. $1.00 $0.054 $ - $(0.054) $ -
1995.................................. 1.00 0.049 - (0.049) -
1994.................................. 1.00 0.031 - (0.031) -
1993.................................. 1.00 0.033 - (0.033) -
Six Months Ended May 31, 1992(d)...... 1.00 0.021 - (0.021) -
Year Ended November 30, 1991.......... 1.00 0.061 - (0.061) -
U.S. GOVERNMENT FUND
Year Ended May 31,
1996.................................. 1.00 0.052 - (0.052) -
1995.................................. 1.00 0.047 - (0.047) -
1994.................................. 1.00 0.030 - (0.030) -
1993.................................. 1.00 0.030 - (0.030) -
Six Months Ended May 31, 1992(d)...... 1.00 0.020 - (0.020) -
Year Ended November 30, 1991.......... 1.00 0.058 - (0.058) -
TREASURY FUND
Year Ended May 31,
1996.................................. 1.00 0.050 - (0.050) -
1995.................................. 1.00 0.046 - (0.046) -
1994.................................. 1.00 0.028 - (0.028) -
1993.................................. 1.00 0.029 - (0.029) -
Six Months Ended May 31, 1992(d)...... 1.00 0.020 - (0.020) -
Period Ended November 30, 1991(c)..... 1.00 0.058 - (0.058) -
READY CASH INVESTMENT FUND
INVESTOR SHARES
Year Ended May 31,
1996.................................. 1.00 0.051 - (0.051) -
1995.................................. 1.00 0.045 - (0.045) -
1994.................................. 1.00 0.027 - (0.027) -
1993.................................. 1.00 0.030 - (0.030) -
Six Months Ended May 31, 1992(d)...... 1.00 0.020 - (0.020) -
Year Ended November 30, 1991.......... 1.00 0.058 - (0.058) -
EXCHANGE SHARES
Year Ended May 31,
1996.................................. 1.00 0.043 - (0.043) -
1995.................................. 1.00 0.038 - (0.038) -
Period Ended May 31, 1994(c).......... 1.00 0.001 - (0.001) -
INSTITUTIONAL SHARES
Year Ended May 31,
1996.................................. 1.00 0.054 - (0.054) -
1995.................................. 1.00 0.049 - (0.049) -
Period Ended May 31, 1994(c).......... 1.00 0.013 - (0.013) -
MUNICIPAL MONEY MARKET FUND
INVESTOR SHARES
Year Ended May 31,
1996.................................. 1.00 0.033 - (0.033) -
1995.................................. 1.00 0.031 (0.004) (0.031) -
1994.................................. 1.00 0.021 - (0.021) -
1993.................................. 1.00 0.021 - (0.021) -
Six Months Ended May 31, 1992(d)...... 1.00 0.014 - (0.014) -
Year Ended November 30, 1991.......... 1.00 0.042 - (0.042) -
INSTITUTIONAL SHARES
Year Ended May 31,
1996.................................. 1.00 0.035 - (0.035) -
1995.................................. 1.00 0.033 (0.004) (0.033) -
Period Ended May 31, 1994(c).......... 1.00 0.019 - (0.019) -
<CAPTION>
RATIOS TO AVERAGE NET
ASSETS
------------------------ NET ASSETS AT
CAPITAL ENDING NET NET END OF PERIOD
CONTRIBUTION ASSET VALUE INVESTMENT TOTAL (000'S
FROM ADVISOR PER SHARE EXPENSES(A) INCOME RETURN OMITTED)
------------ ----------- ----------- ---------- ------ -------------
<S> <C> <C> <C> <C> <C> <C>
CASH INVESTMENT FUND
Year Ended May 31,
1996.................................. $ - $1.00 0.48% 5.36% 5.50% $1,739,549
1995.................................. - 1.00 0.48% 4.87% 4.96% 1,464,304
1994.................................. - 1.00 0.49% 3.11% 3.16% 1,381,402
1993.................................. - 1.00 0.50% 3.29% 3.36% 1,944,948
Six Months Ended May 31, 1992(d)...... - 1.00 0.50%(b) 4.23%(b) 4.29%(b) 1,292,196
Year Ended November 30, 1991.......... - 1.00 0.51% 6.11% 6.31% 1,004,979
U.S. GOVERNMENT FUND
Year Ended May 31,
1996.................................. - 1.00 0.50% 5.13% 5.27% 1,649,721
1995.................................. - 1.00 0.50% 4.68% 4.81% 1,159,421
1994.................................. - 1.00 0.47% 3.02% 3.07% 1,091,141
1993.................................. - 1.00 0.45% 3.00% 3.06% 903,274
Six Months Ended May 31, 1992(d)...... - 1.00 0.45%(b) 3.99%(b) 4.07%(b) 623,685
Year Ended November 30, 1991.......... - 1.00 0.45% 5.84% 6.00% 469,487
TREASURY FUND
Year Ended May 31,
1996.................................. - 1.00 0.46% 4.91% 5.04% 802,270
1995.................................. - 1.00 0.46% 4.62% 4.65% 661,098
1994.................................. - 1.00 0.46% 2.81% 2.83% 526,483
1993.................................. - 1.00 0.47% 2.93% 2.98% 384,751
Six Months Ended May 31, 1992(d)...... - 1.00 0.47%(b) 4.01%(b) 4.07%(b) 374,492
Period Ended November 30, 1991(c)..... - 1.00 0.31%(b) 5.62%(b) 6.02%(b) 354,200
READY CASH INVESTMENT FUND
INVESTOR SHARES
Year Ended May 31,
1996.................................. - 1.00 0.82% 5.02% 5.17% 473,879
1995.................................. - 1.00 0.82% 4.64% 4.62% 268,603
1994.................................. - 1.00 0.82% 2.70% 2.74% 164,138
1993.................................. - 1.00 0.82% 3.04% 3.08% 162,585
Six Months Ended May 31, 1992(d)...... - 1.00 0.82%(b) 4.01%(b) 4.05%(b) 176,378
Year Ended November 30, 1991.......... - 1.00 0.82% 5.81% 5.98% 183,775
EXCHANGE SHARES
Year Ended May 31,
1996.................................. - 1.00 1.57% 4.32% 4.38% 129
1995.................................. - 1.00 1.57% 3.62% 3.69% 160
Period Ended May 31, 1994(c).......... - 1.00 1.53%(b) 2.48%(b) 2.51%(b) 151
INSTITUTIONAL SHARES
Year Ended May 31,
1996.................................. - 1.00 0.48% 5.59% 5.53% 1,080,255
1995.................................. - 1.00 0.48% 4.97% 4.98% 506,243
Period Ended May 31, 1994(c).......... - 1.00 0.43%(b) 3.12%(b) 3.17%(b) 333,464
MUNICIPAL MONEY MARKET FUND
INVESTOR SHARES
Year Ended May 31,
1996.................................. - 1.00 0.65% 3.25% 3.31% 57,021
1995.................................. 0.004 1.00 0.65% 3.10% 3.13%(e) 47,424
1994.................................. - 1.00 0.65% 2.03% 2.09% 33,554
1993.................................. - 1.00 0.65% 2.13% 2.18% 75,521
Six Months Ended May 31, 1992(d)...... - 1.00 0.63%(b) 2.81%(b) 2.89%(b) 82,678
Year Ended November 30, 1991.......... - 1.00 0.64% 4.10% 4.26% 66,327
INSTITUTIONAL SHARES
Year Ended May 31,
1996.................................. - 1.00 0.45% 3.41% 3.52% 592,436
1995.................................. 0.004 1.00 0.45% 3.37% 3.33%(e) 278,953
Period Ended May 31, 1994(c).......... - 1.00 0.45%(b) 2.33%(b) 2.34%(b) 190,356
</TABLE>
See notes to financial statements.
[LOGO]
11
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONCLUDED) MAY 31, 1996
(a) During certain periods, various fees and expenses were waived and
reimbursed. Had such waivers and reimbursements not occurred, the ratio of
expenses to average net assets would have been:
<TABLE>
<CAPTION>
YEAR ENDED MAY 31,
----------------------------------------------
1996 1995 1994 1993
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Cash Investment Fund......................................................... 0.49% 0.50% 0.49% 0.51%
U.S. Government Fund......................................................... 0.51% 0.52% 0.53% 0.57%
Treasury Fund................................................................ 0.56% 0.57% 0.58% 0.58%
Ready Cash Investment Fund
Investor shares............................................................ 0.87% 0.91% 0.92% 0.94%
Exchange shares............................................................ 8.24% 6.32% 1.85%(b) -
Institutional shares....................................................... 0.72% 0.73% 0.81%(b) -
Municipal Money Market Fund
Investor shares............................................................ 0.88% 0.93% 0.99% 0.97%
Institutional shares....................................................... 0.72% 0.74% 0.77%(b) -
<CAPTION>
SIX MONTHS
ENDED MAY 31, YEAR ENDED
1992(B)(D) NOVEMBER 30, 1991
--------------- -----------------
<S> <C> <C>
Cash Investment Fund......................................................... 0.56% 0.54%
U.S. Government Fund......................................................... 0.61% 0.60%
Treasury Fund................................................................ 0.59% 0.66%(b)
Ready Cash Investment Fund
Investor shares............................................................ 0.93% 0.96%
Exchange shares............................................................ - -
Institutional shares....................................................... - -
Municipal Money Market Fund
Investor shares............................................................ 0.96% 1.08%
Institutional shares....................................................... - -
</TABLE>
(b) Annualized
(c) See Note 1 of notes to financial statements for periods covered.
(d) See Note 1 of notes to financial statements regarding change of fiscal year.
(e) The total return for 1995 includes the effect of a capital contribution from
the Adviser. Without the capital contribution, the total return would have
been 2.59% for Investor shares and 2.79% for Institutional shares.
See notes to financial statements.
[LOGO]
12
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS MAY 31, 1996
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
CASH INVESTMENT FUND
- ----------------------------------------------------
AGENCY NOTES (3.6%)
17,500,000 Federal Farm Credit Bank, 5.60%,
due 7/1/96 $ 17,501,002
25,000,000 Federal Home Loan Bank, 6.02%,
due 6/3/96 25,000,000
20,000,000 Federal National Mortgage
Association, 5.30%, due
12/26/96 19,977,304
----------------
TOTAL AGENCY NOTES 62,478,306
----------------
ASSET BACKED SECURITIES (0.1%)
2,012,311 Small Business Administration
Guaranteed Loan Pool 502339,
6.13% variable rate, due
1/25/03 2,012,311
----------------
TOTAL ASSET BACKED SECURITIES 2,012,311
----------------
BANK NOTES (10.4%)
35,000,000 Bank of Hawaii, 5.57%, due
11/6/96 35,013,326
25,000,000 Bank of Hawaii, 5.50%, due 1/3/97 24,992,973
25,000,000 First National Bank of Maryland,
5.15%, due 2/26/97 25,008,846
10,000,000 Huntington National Bank, 6.55%,
due 7/1/96 10,006,819
20,000,000 National Australia Bank Ltd.,
5.12%, due 2/28/97 19,995,724
25,000,000 PNC Bank, N.A., Pittsburgh, 5.38%
variable rate, due 12/20/96 24,992,050
10,000,000 PNC Bank, N.A., Pittsburgh, 5.36%
variable rate, due 1/6/97 9,995,388
15,000,000 Shizuoka Bank, Ltd., 5.48%
variable rate, due 10/25/96 14,999,410
15,000,000 The Bank of New York Company,
Incorporated, Delaware, 5.50%
variable rate, due 10/24/96 15,000,000
----------------
TOTAL BANK NOTES 180,004,536
----------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
CASH INVESTMENT FUND (continued)
- ----------------------------------------------------
CERTIFICATES OF DEPOSIT (4.5%)
25,000,000 Bank of Tokyo-Mitsubishi Ltd.,
5.22%, due 8/22/96 $ 24,979,435
3,000,000 Bank of Tokyo-Mitsubishi Ltd.,
5.22%, due 8/26/96 2,997,433
50,000,000 Norinchunkin Bank Ltd., New York
Branch, 5.46%, due 7/26/96 49,998,698
----------------
TOTAL CERTIFICATES OF DEPOSIT 77,975,566
----------------
COMMERCIAL PAPER (37.7%)
1,600,000 AES Shady Point, Incorporated,
Bank of Tokyo-Mitsubishi Ltd.
LOC, 5.40% yield, due 6/7/96 1,599,040
1,775,000 Anchor Funding Corporation, 5.40%
yield, due 6/21/96 1,770,207
13,750,000 Anchor Funding Corporation, 5.38%
yield, due 7/15/96 13,663,696
8,250,000 Anchor Funding Corporation, 5.40%
yield, due 8/8/96 8,168,325
20,000,000 Arena Funding Corporation, 5.30%
yield, due 6/5/96(a) 19,994,111
10,000,000 Arena Funding Corporation, 5.25%
yield, due 6/28/96(a) 9,963,542
13,077,000 Astro Capital Corporation, 5.45%
yield, due 6/3/96(a) 13,077,000
10,664,000 Astro Capital Corporation, 5.45%
yield, due 6/20/96(a) 10,636,555
18,000,000 Astro Capital Corporation, 5.40%
yield, due 7/31/96(a) 17,843,400
29,090,000 Atlas Funding Corporation, 5.39%
yield, due 6/12/96(a) 29,050,801
50,000,000 Atlas Funding Corporation, 5.40%
yield, due 6/14/96(a) 49,917,500
25,000,000 Banco Espirito Santo North
America Capital Corporation,
5.38% yield, due 7/10/96 24,861,893
20,000,000 Bancomer S.A., Bank of Montreal
LOC, 5.25% yield, due 9/20/96 19,682,084
5,000,000 Creative Capital Corporation,
5.40% yield, due 7/17/96 4,967,000
</TABLE>
[LOGO]
See Notes to Financial Statements.
13
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) MAY 31, 1996
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
CASH INVESTMENT FUND (continued)
- ----------------------------------------------------
20,000,000 Diamond Asset Funding
Corporation, Bank of
Tokyo-Mitsubishi Ltd. LOC,
5.37% yield, due 6/28/96 $ 19,925,417
12,392,000 FP Funding Corporation, 5.40%
yield, due 6/7/96 12,384,565
20,000,000 Harris County, TX, Industrial
Development Corporate Taxable
Commercial Paper, (Deer Park
Refining LTD), 5.45% yield, due
6/28/96 20,000,000
11,709,000 Hartz 667 Corporation, Bank of
Tokyo-Mitsubishi, Ltd. LOC,
5.40% yield, due 6/7/96 11,701,975
25,000,000 Jet Funding Corporation, 5.37%
yield, due 6/28/96 24,906,771
35,000,000 Jet Funding Corporation, 5.39%
yield, due 7/31/96 34,696,064
15,000,000 Mitsubishi Electric Finance
America, Incorporated, 5.40%
yield, due 7/31/96 14,869,500
18,147,000 Mitsubishi Motor Credit, 5.45%
yield, due 6/6/96 18,138,758
10,000,000 SRD Finance, Incorporated, 5.42%
yield, due 6/13/96 9,984,944
5,000,000 Southland Corporation, 5.15%
yield, due 8/2/96 4,957,084
56,000,000 Strategic Asset Funding
Corporation, 5.38% yield, due
7/1/96 55,766,605
12,500,000 Strategic Asset Funding
Corporation, 5.42% yield, due
9/3/96 12,326,862
20,000,000 Sumitomo Bank Capital Markets
Inc., 5.50% yield, due 7/11/96 19,883,889
13,000,000 Sumitomo Bank Capital Markets
Inc., 5.43% yield, due 8/5/96 12,876,468
20,000,000 Sumitomo Bank Capital Markets
Inc., 5.43% yield, due 8/7/96 19,803,917
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
CASH INVESTMENT FUND (continued)
- ----------------------------------------------------
10,000,000 Sumitomo Bank Capital Markets
Inc., 5.43% yield, due 10/24/96 $ 9,784,309
10,000,000 Sumitomo Bank Ltd. Capital
Markets, 5.43% yield, due
10/24/96 9,784,309
15,000,000 Toshiba International Finance,
5.30% yield, due 6/21/96 14,960,250
25,000,000 Towson Town Center, Incorporated,
Bank of Tokyo-Mitsubishi Ltd.
LOC, 5.40% yield, due 6/7/96 24,985,000
12,191,000 Transmission Agency of Northern
California, Industrial Bank of
Japan, Ltd., Los Angeles Branch
LOC, 5.40% yield, due 8/7/96 12,072,138
11,155,000 Tri-Lateral Capital,
Incorporated, 5.45% yield, due
6/10/96(a) 11,143,179
4,360,000 Tri-Lateral Capital,
Incorporated, 5.42% yield, due
7/19/96(a) 4,329,805
12,410,000 Tri-Lateral Capital,
Incorporated, 5.40% yield, due
8/13/96(a) 12,277,833
20,000,000 Vattenfall Treasury,
Incorporated, 5.10% yield, due
7/29/96 19,841,334
15,082,000 Working Capital Management
Company, L.P., 5.48% yield, due
6/14/96 15,056,746
----------------
TOTAL COMMERCIAL PAPER 651,652,876
----------------
CORPORATE NOTES (26.6%)
32,000,000 Asset Backed Trust 1995 Series
A-1, 5.46% variable rate, due
12/10/96(a) 31,999,764
35,000,000 Asset Backed Trust 1996 Series
A-5, 5.48% variable rate, due
3/17/97(a) 35,000,000
</TABLE>
[LOGO]
See Notes to Financial Statements.
14
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) MAY 31, 1996
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
CASH INVESTMENT FUND (continued)
- ----------------------------------------------------
50,000,000 Bear, Stearns & Company,
Incorporated, 5.48% variable
rate, due 1/16/97 $ 50,000,000
25,000,000 Bear, Stearns & Company,
Incorporated, 5.58% variable
rate, due 4/15/97 25,000,000
15,000,000 CS First Boston, Incorporated,
5.37% variable rate, due
9/16/96 15,000,000
5,000,000 Capital Holding Corporation,
8.70%, due 7/31/96 5,021,040
13,600,000 Cargill, Incorporated, 8.25%, due
3/6/97 13,887,617
12,850,000 Credit Suisse, 4.43%, due 7/8/96 12,835,383
8,150,000 Ford Motor Credit Company, 7.88%,
due 1/15/97 8,288,784
5,800,000 Franklin Resources, Incorporated,
6.36%, due 6/26/96 5,802,820
10,000,000 General Electric Capital
Corporation, 7.98%, due
12/15/96 10,137,818
5,000,000 General Electric Capital
Corporation, 5.05%, due 2/3/97 5,001,281
22,000,000 General Electric Company, 5.85%,
due 8/29/96 21,994,876
5,000,000 Merrill Lynch & Company,
Incorporated, 4.75%, due
6/24/96 4,996,784
12,500,000 Merrill Lynch & Company,
Incorporated, 5.90%, due
10/25/96 12,500,000
30,000,000 Merrill Lynch & Company,
Incorporated, 5.44% variable
rate, due 3/14/97 30,000,000
40,000,000 Morgan Stanley Group,
Incorporated, 5.54% variable
rate, due 3/15/01 40,000,000
25,000,000 Morgan Stanley Group,
Incorporated, 5.50% variable
rate, due 5/15/01 25,000,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
CASH INVESTMENT FUND (continued)
- ----------------------------------------------------
15,000,000 PepsiCo, Incorporated, 7.75%, due
2/28/97 $ 15,281,930
3,890,000 Phillip Morris Companies,
Incorporated, 8.88%, due 7/1/96 3,898,608
40,000,000 Sanwa Business Credit
Corporation, 5.50% variable
rate, due 8/9/96 40,000,000
2,000,000 Security Pacific Corporation,
7.75%, due 12/1/96 2,022,779
16,800,000 Southern California Edison
Company, 5.90%, due 1/15/97 16,859,065
10,000,000 Toyota Motor Credit Corporation,
5.94%, due 7/28/96 10,010,150
20,000,000 Toyota Motor Credit Corporation,
5.00%, due 2/26/97 19,983,305
----------------
TOTAL CORPORATE NOTES 460,522,004
----------------
MUNICIPAL BONDS & NOTES (3.7%)
25,000,000 Anaheim, CA, Certificates of
Participation, Arena Financing
Project, Credit Suisse LOC,
5.50%, due 8/1/96 25,000,000
15,000,000 Brazos River Authority, TX,
Special Obligation Demand
Notes, Morgan Guaranty Trust
Company of New York LOC, 5.44%
yield, due 8/23/96 15,000,000
16,000,000 City of New York, NY, General
Obligation Taxable Bonds, 5.27%
variable rate, due 8/15/20 16,000,000
8,300,000 Durham, N.C., Certificates,
Series B, 5.42% variable rate,
due 7/1/03 8,300,000
----------------
TOTAL MUNICIPAL BONDS & NOTES 64,300,000
----------------
</TABLE>
[LOGO]
See Notes to Financial Statements.
15
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) MAY 31, 1996
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
CASH INVESTMENT FUND (concluded)
- ----------------------------------------------------
TIME DEPOSITS (11.4%)
13,000,000 Bank of Tokyo-Mitsubishi, Ltd.,
5.44%, due 6/3/96 $ 13,000,000
24,853,739 Banque Bruxelles Lambert, 5.50%,
due 6/3/96 24,853,739
40,000,000 Banque Bruxelles Lambert, 5.31%,
due 6/6/96 40,000,000
25,000,000 Chemical Bank, Toronto Canada,
5.38%, due 6/3/96 25,000,000
13,000,000 Dai-Ichi Kangyo Bank Ltd., 5.44%,
due 6/3/96 13,000,000
40,000,000 Dresdner Bank, Toronto, Canada,
5.28%, due 6/6/96 40,000,000
26,000,000 Sanwa Bank Ltd., 5.47%, due
6/3/96 26,000,000
15,000,000 Suntrust Banks, Incorporated,
5.44%, due 6/3/96 15,000,000
----------------
TOTAL TIME DEPOSITS 196,853,739
----------------
OTHER INVESTMENTS (2.0%)
15,000,000 American General Finance
Incorporated, Master Note 15,000,000
15,000,000 General Electric Company Master
Note 15,000,000
5,000,000 New Zealand Government, 8.25%,
due 9/25/96 5,034,791
----------------
TOTAL OTHER INVESTMENTS 35,034,791
----------------
TOTAL INVESTMENTS (100.0%) $1,730,834,129
----------------
----------------
- ----------------------------------------------------
U.S. GOVERNMENT FUND
- ----------------------------------------------------
AGENCY NOTES (17.1%)
25,000,000 Federal Farm Credit Bank, 5.60%,
due 7/1/96 $ 25,001,432
15,000,000 Federal Home Loan Bank, 6.02%,
due 6/3/96 15,000,000
6,000,000 Federal Home Loan Bank, 4.92%
variable rate, due 7/26/96 5,996,162
20,000,000 Federal Home Loan Bank, 5.23%
variable rate, due 9/20/96 19,992,712
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
U.S. GOVERNMENT FUND (continued)
- ----------------------------------------------------
20,000,000 Federal Home Loan Bank, 5.25%
variable rate, due 9/26/96 $ 19,993,936
25,000,000 Federal National Mortgage
Association, 5.50%, due 6/12/96 24,997,301
25,000,000 Federal National Mortgage
Association, 5.34% variable
rate, due 11/20/96 24,992,159
15,000,000 Federal National Mortgage
Association, 5.30%, due
12/26/96 14,982,978
20,000,000 Federal National Mortgage
Association, 7.68%, due 1/27/97 20,277,034
15,000,000 Federal National Mortgage
Association, 5.05%, due 3/14/97 14,944,205
10,000,000 Student Loan Marketing
Association, 5.40% variable
rate, due 6/13/96 9,999,603
11,750,000 Student Loan Marketing
Association, 5.31% variable
rate, due 7/19/96 11,748,546
22,250,000 Student Loan Marketing
Association, 5.54% variable
rate, due 11/27/96 22,265,926
5,000,000 Student Loan Marketing
Association, 5.41% variable
rate, due 8/4/97 4,993,147
48,250,000 Student Loan Marketing
Association, 5.46% variable
rate, due 2/17/98 48,209,517
----------------
TOTAL AGENCY NOTES 283,394,658
----------------
DISCOUNT NOTES (52.9%)
25,000,000 Federal Farm Credit Bank, 5.20%
yield, due 7/12/96 24,859,167
25,000,000 Federal Home Loan Bank, 5.22%
yield, due 6/12/96 24,967,375
35,000,000 Federal Home Loan Bank, 4.81%
yield, due 7/9/96 34,831,650
2,000,000 Federal Home Loan Bank, 5.29%
yield, due 8/8/96 1,980,604
35,000,000 Federal Home Loan Bank, 5.19%
yield, due 8/12/96 34,646,792
</TABLE>
[LOGO]
See Notes to Financial Statements.
16
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) MAY 31, 1996
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
U.S. GOVERNMENT FUND (continued)
- ----------------------------------------------------
25,000,000 Federal Home Loan Bank, 4.75%
yield, due 8/13/96 $ 24,765,799
20,000,000 Federal Home Loan Bank, 5.26%
yield, due 11/5/96 19,547,056
25,000,000 Federal Home Loan Bank, 5.12%
yield, due 12/16/96 24,303,112
25,000,000 Federal Home Loan Bank, 5.16%
yield, due 12/27/96 24,258,251
25,000,000 Federal Home Loan Bank, 5.24%
yield, due 1/13/97 24,184,891
21,385,000 Federal Home Loan Bank, 5.26%
yield, due 2/3/97 20,619,478
25,000,000 Federal Home Loan Mortgage
Corporation, 5.20% yield, due
6/25/96 24,920,556
25,000,000 Federal Home Loan Mortgage
Corporation, 5.21% yield, due
6/28/96 24,909,549
25,000,000 Federal Home Loan Mortgage
Corporation, 5.26% yield, due
7/10/96 24,864,847
40,000,000 Federal Home Loan Mortgage
Corporation, 5.18% yield, due
7/22/96 39,718,250
50,000,000 Federal Home Loan Mortgage
Corporation, 5.19% yield, due
7/24/96 49,632,375
20,000,000 Federal Home Loan Mortgage
Corporation, 5.18% yield, due
7/25/96 19,850,356
24,000,000 Federal Home Loan Mortgage
Corporation, 5.24% yield, due
8/1/96 23,793,894
20,000,000 Federal Home Loan Mortgage
Corporation, 5.24% yield, due
8/6/96 19,813,689
25,000,000 Federal Home Loan Mortgage
Corporation, 5.21% yield, due
8/19/96 24,721,410
25,000,000 Federal Home Loan Mortgage
Corporation, 5.18% yield, due
10/22/96 24,492,792
10,000,000 Federal Home Loan Mortgage
Corporation, 5.21% yield, due
11/19/96 9,755,420
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
U.S. GOVERNMENT FUND (continued)
- ----------------------------------------------------
25,000,000 Federal National Mortgage
Association, 4.87% yield, due
6/11/96 $ 24,972,944
50,000,000 Federal National Mortgage
Association, 5.16% yield, due
6/13/96 49,928,333
25,000,000 Federal National Mortgage
Association, 5.15% yield, due
6/24/96 24,924,896
25,000,000 Federal National Mortgage
Association, 4.96% yield, due
7/30/96 24,803,667
21,000,000 Federal National Mortgage
Association, 5.13% yield, due
8/16/96 20,778,555
50,000,000 Federal National Mortgage
Association, 5.15% yield, due
8/22/96 49,427,778
25,000,000 Federal National Mortgage
Association, 4.86% yield, due
8/23/96 24,726,625
25,000,000 Federal National Mortgage
Association, 5.12% yield, due
9/13/96 24,640,875
25,000,000 Federal National Mortgage
Association, 5.20% yield, due
9/24/96 24,591,945
25,000,000 Federal National Mortgage
Association, 5.23% yield, due
10/24/96 24,480,633
15,000,000 Tennessee Valley Authority, 5.18%
yield, due 7/8/96 14,924,458
20,000,000 Tennessee Valley Authority, 5.24%
yield, due 7/16/96 19,874,822
----------------
TOTAL DISCOUNT NOTES 873,512,844
----------------
REPURCHASE AGREEMENTS (30.0%)
36,954,000 BA Securities, Incorporated,
5.29%, due 6/3/96, to be
repurchased at $36,970,291.
Collateralized by $37,380,000
U.S. Treasury Notes, 5.83%, due
5/15/97 36,954,000
</TABLE>
[LOGO]
See Notes to Financial Statements.
17
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) MAY 31, 1996
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
U.S. GOVERNMENT FUND (continued)
- ----------------------------------------------------
223,827,386 BA Securities, Incorporated,
5.38%, due 6/3/96, to be
repurchased at $223,927,642.
Collateralized by $25,000,000
Federal Farm Credit Bank
Discount Notes, 5.23%, due
8/6/96; $20,000,000 Federal
Farm Credit Bank Discount
Notes, 5.30%, due 9/9/96;
$17,000,000 Federal Farm Credit
Bank Discount Notes, 5.17%, due
11/21/96; $47,000,000 Federal
Home Loan Bank Discount Notes,
5.20%, due 2/13/97;
$100,000,000 Federal Home Loan
Mortgage Discount Notes, 5.24%,
due 9/3/96; $32,860,000 Federal
National Mortgage Association
Discount Notes, 5.23%, due
8/6/96; $20,480,000 Federal
National Mortgage Association
Discount Notes, 5.30%, due
9/5/96; $77,000,000 Federal
National Mortgage Association
Discount Notes, 5.17%, due
11/27/96; $48,000,000 Federal
National Mortgage Association
Discount Notes, 5.14%, due
12/24/96 $ 223,827,386
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
U.S. GOVERNMENT FUND (continued)
- ----------------------------------------------------
50,000,000 BA Securities, Incorporated,
5.42%, due 6/3/96, to be
repurchased at $50,022,583.
Collateralized by $15,000,000
Federal Home Loan Bank Discount
Notes, 5.20%, due 1/30/97;
$37,140,000 Federal National
Mortgage Association Discount
Notes, 5.23%, due 8/6/96 $ 50,000,000
35,000,000 BA Securities, Incorporated,
5.20%, due 6/5/96, to be
repurchased at $35,035,388.89.
Collateralized by $20,834,000
Federal Home Loan Bank Discount
Notes, 5.26%, due 6/25/96;
$4,390,000 Federal National
Mortgage Association Discount
Notes, 5.27%, due 6/7/96;
$14,460,000 Federal National
Mortgage Association Discount
Notes, 5.26%, due 6/19/96;
$11,725,000 Federal National
Mortgage Association Discount
Notes, 5.30%, due 8/30/96 35,000,000
</TABLE>
[LOGO]
See Notes to Financial Statements.
18
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) MAY 31, 1996
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
U.S. GOVERNMENT FUND (concluded)
- ----------------------------------------------------
150,000,000 Bear, Stearns & Co., Inc., 5.39%
variable rate, available on
demand at $150,000,000 plus
accrued interest,
Collateralized by $26,185,000
U.S Treasury Strip Notes,
5.18%, due 8/15/96; $33,125,000
U.S. Treasury Strip Notes,
5.37%, due 11/15/96;
$69,750,000 U.S Treasury Strip
Notes, 5.67%, due 2/15/97;
$30,000,000 U.S. Treasury Strip
Notes, 5.79%, due 5/15/97 $ 150,000,000
----------------
TOTAL REPURCHASE AGREEMENTS 495,781,386
----------------
TOTAL INVESTMENTS (100.0%) $1,652,688,888
----------------
----------------
- ----------------------------------------------------
TREASURY FUND
- ----------------------------------------------------
TREASURY BILLS (80.1%)
75,000,000 U.S. Treasury, 4.89% yield, due
6/6/96 $ 74,969,417
80,000,000 U.S. Treasury, 4.90% yield, due
6/13/96 79,891,028
50,000,000 U.S. Treasury, 5.18% yield, due
6/18/96 49,892,187
75,000,000 U.S. Treasury, 4.96% yield, due
6/20/96 74,824,274
75,000,000 U.S. Treasury, 4.96% yield, due
6/27/96 74,752,167
75,000,000 U.S. Treasury, 4.98% yield, due
7/5/96 74,667,889
50,000,000 U.S. Treasury, 4.95% yield, due
7/11/96 49,738,750
30,000,000 U.S. Treasury, 5.00% yield, due
7/25/96 29,783,551
22,120,000 U.S. Treasury, 4.81% yield, due
8/22/96 21,883,658
30,000,000 U.S. Treasury, 4.84% yield, due
8/29/96 29,649,100
25,000,000 U.S. Treasury, 5.00% yield, due
9/5/96 24,673,611
20,525,000 U.S. Treasury, 5.04% yield, due
10/3/96 20,174,460
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
TREASURY FUND (concluded)
- ----------------------------------------------------
20,000,000 U.S. Treasury, 5.04% yield, due
11/14/96 $ 19,540,574
----------------
TOTAL TREASURY BILLS 624,440,666
----------------
TREASURY NOTES (19.9%)
25,000,000 U.S. Treasury, 7.88%, due 7/15/96 25,073,114
30,000,000 U.S. Treasury, 4.38%, due 8/15/96 29,945,006
25,000,000 U.S. Treasury, 6.25%, due 8/31/96 25,044,315
25,000,000 U.S. Treasury, 6.50%, due 8/31/96 25,120,133
25,000,000 U.S. Treasury, 7.25%, due 8/31/96 25,105,201
25,000,000 U.S. Treasury, 7.25%, due
11/30/96 25,215,354
----------------
TOTAL TREASURY NOTES 155,503,123
----------------
TOTAL INVESTMENTS (100.0%) $779,943,789
----------------
----------------
- ----------------------------------------------------
READY CASH INVESTMENT FUND
- ----------------------------------------------------
AGENCY NOTES (1.6%)
10,000,000 Federal Home Loan Bank, 6.02%,
due 6/3/96 $ 10,000,000
15,000,000 Federal National Mortgage
Association, 5.30%, due
12/26/96 14,982,978
----------------
TOTAL AGENCY NOTES 24,982,978
----------------
ASSET BACKED SECURITIES (0.1%)
1,803,592 Small Business Administration
Pool 502524, 6.00% variable
rate, due 2/25/04 1,803,592
----------------
TOTAL ASSET BACKED SECURITIES 1,803,592
----------------
BANK NOTES (8.7%)
25,000,000 Bank of Hawaii, 5.57%, due
11/6/96 25,009,517
15,000,000 Bank of Hawaii, 5.50%, due 1/3/97 14,995,784
</TABLE>
[LOGO]
See Notes to Financial Statements.
19
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) MAY 31, 1996
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
READY CASH INVESTMENT FUND (continued)
- ----------------------------------------------------
15,000,000 First National Bank of Maryland,
5.15%, due 2/26/97 $ 15,005,308
25,000,000 National Australia Bank Ltd,
5.75%, due 10/2/96 24,989,694
5,000,000 National Australia Bank Ltd.,
5.12%, due 2/28/97 4,998,931
25,000,000 PNC Bank, N.A., Pittsburgh, 5.38%
variable rate, due 12/20/96 24,992,050
15,000,000 PNC Bank, N.A., Pittsburgh, 5.36%
variable rate, due 1/6/97 14,993,081
10,000,000 The Bank of New York Company,
Incorporated, Delaware, 5.50%
variable rate, due 10/24/96 10,000,000
----------------
TOTAL BANK NOTES 134,984,365
----------------
CERTIFICATES OF DEPOSIT (4.8%)
25,000,000 Dresdner Bank AG, 5.05%, due
2/26/97 24,994,692
50,000,000 Norinchukin Bank, Ltd., 5.46%,
due 7/26/96 49,998,698
----------------
TOTAL CERTIFICATES OF DEPOSIT 74,993,390
----------------
COMMERCIAL PAPER (44.8%)
6,700,000 AES Shady Point, Incorporated,
Bank of Tokyo Mitsubishi, Ltd.
LOC, 5.40% yield, due 6/7/96 6,695,980
15,000,000 Anchor Funding Corporation, 5.38%
yield, due 7/15/96 14,905,850
15,000,000 Anchor Funding Corporation, 5.40%
yield, due 8/8/96 14,851,500
15,000,000 Arena Funding Corporation, 5.30%
yield, due 6/5/96(a) 14,995,583
4,533,000 Arena Funding Corporation, 5.25%
yield, due 6/28/96(a) 4,516,473
15,000,000 Astro Capital Corporation, 5.50%
yield, due 7/1/96(a) 14,935,833
9,000,000 Astro Capital Corporation, 5.40%
yield, due 7/31/96(a) 8,921,700
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
READY CASH INVESTMENT FUND (continued)
- ----------------------------------------------------
8,195,000 Atlas Funding Corporation, 5.40%
yield, due 6/19/96(a) $ 8,175,332
25,000,000 Banco Espirito Santo North
America Capital Corporation,
5.38% yield, due 7/10/96 24,861,893
4,250,000 Bancomer S.A., Bank of Montreal
LOC, 5.25% yield, due 9/20/96 4,182,443
15,000,000 Bankers Trust, 5.13% yield, due
7/26/96 14,886,712
10,800,000 Brazos River Authority, TX,
Pollution Control Revenue
bonds, Taxable Series 1991 D,
Morgan Guaranty Trust Company
LOC, 5.44% yield, due 8/23/96 10,800,000
10,000,000 Creative Capital Corporation,
5.40% yield, due 7/10/96 9,944,500
19,808,000 Diamond Asset Funding
Corporation, Bank of Tokyo
Mitsubishi Ltd. LOC, 5.37%
yield, due 6/28/96 19,734,133
5,000,000 Epson America, Incorporated,
Dai-Ichi Kangyo Bank Ltd. LOC,
5.40% yield, due 7/1/96 4,979,000
18,000,000 FP Funding Corporation, 5.38%
yield, due 6/28/96 17,932,750
18,012,000 Harris County, TX, Industrial
Development Corporate Taxable
Commercial Paper, (Deer Park
Refining LTD), 5.45% yield, due
6/28/96 18,012,000
10,000,000 Hartz 667 Corporation, Bank of
Tokyo Mitsubishi, Ltd. LOC,
5.40% yield, due 6/7/96 9,994,000
15,208,000 International Lease Finance
Corporation, 5.38% yield, due
6/3/96 15,208,000
21,815,000 Iris Partners Ltd., Sumitomo Bank
Ltd. LOC, 5.48% yield, due
7/2/96 21,718,699
</TABLE>
[LOGO]
See Notes to Financial Statements.
20
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) MAY 31, 1996
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
READY CASH INVESTMENT FUND (continued)
- ----------------------------------------------------
5,700,000 Maguire/Thomas Partners Westlake
Southlake Partnership, Sumitomo
Bank Ltd. LOC, 5.40% yield, due
7/23/96 $ 5,657,250
20,000,000 Mitsubishi Electric Finance
America Incorporated, 5.40%
yield, due 9/10/96 19,703,000
10,000,000 Mitsubishi Motor Credit, 5.45%
yield, due 6/6/96 9,995,458
35,000,000 Orix America Incorporated, Sanwa
Bank Ltd. LOC, 5.33% yield, due
7/9/96 34,813,450
2,000,000 Seiko Corporation of America,
Dai-Ichi Kangyo Bank Ltd. LOC,
5.40% yield, due 8/21/96 1,976,300
21,080,000 Sierra Funding Corporation, 5.57%
yield, due 7/31/96(a) 20,890,831
10,000,000 Southland Corporation, 5.13%
yield, due 7/31/96 9,917,350
30,000,000 Stellar Capital Corporation, 5.42%
yield, due 6/4/96(a) 29,995,483
4,000,000 Stellar Capital Corporation, 5.62%
yield, due 6/19/96(a) 3,990,009
20,000,000 Stellar Capital Corporation, 5.30%
yield, due 8/20/96(a) 19,770,334
37,650,000 Strategic Asset Funding
Corporation, 5.38% yield, due
7/1/96 37,492,456
12,779,000 Strategic Asset Funding
Corporation, 5.38% yield, due
9/3/96 12,603,303
12,500,000 Strategic Asset Funding
Corporation, 5.42% yield, due
9/3/96 12,326,861
20,000,000 Sumitomo Bank Capital Markets,
5.50% yield, due 7/11/96 19,883,889
10,000,000 Sumitomo Bank Capital Markets,
5.40% yield, due 7/22/96 9,926,500
8,000,000 Sumitomo Bank Capital Markets,
5.40% yield, due 7/23/96 7,940,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
READY CASH INVESTMENT FUND (continued)
- ----------------------------------------------------
35,000,000 Sumitomo Bank Capital Markets,
5.47% yield, due 8/19/96 $ 34,590,510
13,500,000 Toshiba International Finance,
5.30% yield, due 6/21/96 13,464,225
22,000,000 Tri-Lateral Capital, Incorporated,
5.45% yield, due 6/11/96(a) 21,973,356
17,440,000 Tri-Lateral Capital, Incorporated,
5.42% yield, due 7/19/96(a) 17,319,219
30,000,000 Tri-Lateral Capital, Incorporated,
5.40% yield, due 8/21/96(a) 29,644,500
30,000,000 Vattenfall Treasury, Incorporated,
5.10% yield, due 7/29/96 29,762,000
14,650,000 Working Capital Management Company
L.P., 5.32% yield, due 6/10/96 14,634,845
15,000,000 Working Capital Management
Company, L.P., 5.48% yield, due
6/14/96 14,974,883
----------------
TOTAL COMMERCIAL PAPER 693,498,393
----------------
CORPORATE NOTES (24.9%)
15,000,000 Asset Backed Trust 1995 Series
A-1, 5.46% variable rate, due
12/10/96(a) 15,000,000
15,000,000 Asset Backed Trust 1996 Series
A-4, 5.46% variable rate, due
1/15/97(a) 14,999,713
30,000,000 Asset Backed Trust 1996 Series
A-5, 5.48% variable rate, due
3/17/97(a) 30,000,000
24,200,000 BT Securities Corporation, 5.69%
variable rate, due 2/3/97 24,217,125
7,000,000 BT Securities Corporation, 5.75%
variable rate, due 2/3/97 7,005,488
25,000,000 Bear, Stearns & Company,
Incorporated, 5.48% variable
rate, due 1/16/97 25,000,000
</TABLE>
[LOGO]
See Notes to Financial Statements.
21
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) MAY 31, 1996
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
READY CASH INVESTMENT FUND (continued)
- ----------------------------------------------------
25,000,000 Bear, Stearns & Company,
Incorporated, 5.58% variable
rate, due 4/15/97 $ 25,000,000
10,000,000 CS First Boston, Incorporated,
5.37% variable rate, due 9/16/96 10,000,000
12,000,000 Credit Suisse, 4.43%, due 7/8/96 11,986,350
6,415,000 Ford Motor Credit, 5.38%, due
7/12/96 6,412,646
10,750,000 General Electric Capital
Corporation, 7.82%, due 1/20/97 10,895,202
13,000,000 General Electric Company, 5.85%,
due 8/29/96 12,987,260
12,205,000 Grand Metropolitan, 8.13%, due
8/15/96 12,258,795
5,000,000 Merrill Lynch & Company,
Incorporated, 5.85%, due 9/3/96 4,999,817
12,500,000 Merrill Lynch & Company,
Incorporated, 5.90%, due
10/25/96 12,500,000
20,000,000 Merrill Lynch & Company,
Incorporated, 5.44% variable
rate, due 3/14/97 20,000,000
30,000,000 Morgan Stanley Group,
Incorporated, 5.54% variable
rate, due 3/15/01 30,000,000
25,000,000 Morgan Stanley Group,
Incorporated, 5.50% variable
rate, due 5/15/01 25,000,000
9,000,000 NationsBank Corporation, 7.50%,
due 2/15/97 9,138,713
15,000,000 Pacific Gas and Electric Company,
7.35%, due 11/12/96 15,110,098
10,000,000 PepsiCo, Incorporated, 7.75%, due
2/28/97 10,187,953
10,000,000 Sanwa Business Credit Corporation,
5.50% variable rate, due 8/9/96 10,000,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
READY CASH INVESTMENT FUND (continued)
- ----------------------------------------------------
7,000,000 Sanwa Business Credit Corporation,
5.47% variable rate, due 9/19/96 $ 6,998,515
17,000,000 Shizuoka Bank Ltd., 5.43% variable
rate, due 8/26/96 16,997,629
10,000,000 Sony Capital Corporation, 7.27%,
due 2/14/97 10,143,483
10,000,000 Toyota Motor Credit Corporation,
5.00%, due 2/26/97 9,991,653
----------------
TOTAL CORPORATE NOTES 386,830,440
----------------
MUNICIPAL BONDS & NOTES (2.9%)
25,000,000 Anaheim, CA, Certificate of
Participation, Arena Financing
Project, Credit Suisse LOC,
5.50%, due 8/1/96 25,000,000
20,000,000 City of New York, NY, General
Obligation Taxable Bonds, 5.27%
variable rate, due 8/15/20 20,000,000
----------------
TOTAL MUNICIPAL BONDS & NOTES 45,000,000
----------------
TIME DEPOSITS (10.6%)
12,000,000 Bank of Tokyo-Mitsubishi, Ltd.,
5.44%, due 6/3/96 12,000,000
11,460,257 Banque Bruxelles Lambert, 5.50%,
due 6/3/96 11,460,257
35,000,000 Banque Bruxelles Lambert, 5.31%,
due 6/6/96 35,000,000
25,000,000 Chemical Bank, 5.38%, due 6/3/96 25,000,000
12,000,000 Dai-Ichi Kangyo Bank Ltd., 5.44%,
due 6/3/96 12,000,000
35,000,000 Dresdner Bank, Toronto, Canada,
5.28%, due 6/6/96 35,000,000
24,000,000 Sanwa Bank Ltd., 5.47%, due 6/3/96 24,000,000
10,000,000 Sun Trust, 5.44%, due 6/3/96 10,000,000
----------------
TOTAL TIME DEPOSITS 164,460,257
----------------
</TABLE>
[LOGO]
See Notes to Financial Statements.
22
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) MAY 31, 1996
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
READY CASH INVESTMENT FUND (concluded)
- ----------------------------------------------------
OTHER INVESTMENTS (1.6%)
15,000,000 American General Finance
Incorporated, Master Note $ 15,000,000
10,000,000 General Electric Company Master
Note 10,000,000
----------------
TOTAL OTHER INVESTMENTS 25,000,000
----------------
TOTAL INVESTMENTS (100.0%) $1,551,553,415
----------------
----------------
- ----------------------------------------------------
MUNICIPAL MONEY MARKET FUND
- ----------------------------------------------------
ARIZONA (1.6%)
4,400,000 Chandler, AZ, Industrial
Development Authority,
Industrial Development Revenue
Bonds, Parsons Municipal
Services, Incorporated,
National Westminster Bank, USA
LOC, 3.85% variable rate, due
12/15/09 $ 4,400,000
6,000,000 Maricopa County, AZ, General
Obligation Tax Anticipation
Notes, Unified School District
# 80, Series A, 4.45%, due
7/31/96 6,004,129
----------------
TOTAL ARIZONA 10,404,129
----------------
ARKANSAS (2.1%)
12,000,000 Little River County, AR,
Pollution Control Revenue
Bonds, Pacific Corporation
Project, Sumitomo Bank Ltd.
LOC, 4.10% variable rate, due
11/1/26 12,000,000
1,000,000 Little Rock, AR, Industrial
Development Revenue Bonds,
guaranteed by CPC
International, 5.28% variable
rate, due 12/1/03 1,000,000
----------------
TOTAL ARKANSAS 13,000,000
----------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ----------------------------------------------------
CALIFORNIA (4.7%)
4,400,000 Azusa, CA, Multi-Family Housing
Revenue Bonds, Pacific Glen
Apartments, Series 1994,
Continental Casualty Surety
Bond LOC, 4.00% variable rate,
due 7/15/15 $ 4,400,000
2,500,000 California Statewide Communities,
Multi-Family Housing Revenue
Bonds, Whispering Winds
Apartment, Series A, 3.95%
variable rate, due 12/1/22 2,500,000
3,200,000 Kern, CA, Community College,
Educational Facilities Revenue
Bonds, 4.05% variable rate, due
1/1/25 3,200,000
1,000,000 Los Angeles, CA, Regional
Airports, Airport Improvement
Revenue Bonds, Societe Generale
LOC, 3.65% variable rate, due
12/1/25 1,000,000
8,000,000 Orange County, CA, Tax & Revenue
Anticipation Notes, Series B,
3.81% variable rate, due
6/30/96 7,990,000
LOC Agreement with Trust Company
Bank 10,000
----------------
8,000,000
1,900,000 Orange County, CA, Water
Districts, Project B,
Certificates of Participation,
3.60% variable rate, due
08/15/15 1,900,000
9,800,000 Pomona, CA, Redevelopment Agency,
Multi-Family Housing Revenue
Bonds, Mercury Savings & Loan
LOC, 4.65% variable rate, due
12/1/07 9,800,000
----------------
TOTAL CALIFORNIA 30,800,000
----------------
</TABLE>
[LOGO]
See Notes to Financial Statements.
23
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) MAY 31, 1996
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ----------------------------------------------------
COLORADO (2.0%)
1,600,000 Arapahoe County, CO, Industrial
Development Revenue Bonds, Jet
Center, Incorporated Project,
guaranteed by Raytheon Company,
4.95% variable rate, due 8/1/13 $ 1,600,000
3,060,000 Colorado Health Facilities
Authority Revenue Bonds, Valley
View Hospital Association
Project, Fuji Bank Ltd. LOC,
4.35% variable rate, due
10/1/12 3,060,000
8,240,000 Lakewood, CO, Multi-Family
Housing Revenue Bonds, St.
Moritz & Diamondhead Project,
Dai-Ichi Kangyo Bank Ltd. LOC,
3.95% variable rate, due
10/1/07 8,240,000
----------------
TOTAL COLORADO 12,900,000
----------------
CONNECTICUT (0.5%)
3,000,000 Connecticut State Development
Authority, Industrial
Develepment Revenue Bonds,
guaranteed by General Accident
Insurance, 3.64%, due 12/1/13 3,000,000
----------------
TOTAL CONNECTICUT 3,000,000
----------------
FLORIDA (8.0%)
5,770,000 Dade County, FL, Housing Finance
Authority, Multi-Family
Mortgage Revenue Bonds, Cutler
Club Apartment Project, Series
J, guaranteed by John Hancock
Insurance, 3.75% variable rate,
due 2/1/05 5,770,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ----------------------------------------------------
2,000,000 Dade County, FL, Industrial
Development Authority Revenue
Bonds, guaranteed by ADP,
Incorporated, 3.85% variable
rate, 11/15/17 $ 2,000,000
5,545,000 Dade County, FL, Multi-Family
Housing Revenue Bonds, La
Hacienda Apartments, guaranteed
by John Hancock Insurance,
Series I, 3.75% variable rate,
due 2/1/05 5,545,000
3,700,000 Dade County, FL, Multi-Family
Housing Revenue Bonds, Mayan
Tower & Villa, Series M,
guaranteed by John Hancock
Insurance, 3.75% variable rate,
due 12/1/29 3,700,000
1,200,000 Florida Housing Finance Agency,
Multi-Family Housing Revenue
Bonds, 1984 Project, Series A,
Wells Fargo Bank LOC, 3.75%
variable rate, due 4/1/07 1,200,000
2,600,000 Florida Housing Finance Agency,
Multi-Family Housing Revenue
Bonds, 1984 Project, Series B,
Wells Fargo Bank LOC, 3.75%
variable rate, due 4/1/07 2,600,000
6,870,000 Florida Housing Finance Agency,
Multi-Family Housing Revenue
Bonds, Buena Vista Project,
guaranteed by New England
Mutual Life, 3.80% variable
rate, due 11/1/07 6,870,000
</TABLE>
[LOGO]
See Notes to Financial Statements.
24
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) MAY 31, 1996
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ----------------------------------------------------
8,120,000 Florida Housing Finance Agency,
Multi-Family Housing Revenue
Bonds, Country Club Project,
Bankers Trust LOC, 4.15%
variable rate, due 12/1/07 $ 8,120,000
3,100,000 Florida Housing Finance Agency,
Multi-Family Housing Revenue
Bonds, Twin Colony, Series EE,
Connecticut General Life
insured, 3.75% variable rate,
due 9/1/08 3,100,000
3,300,000 Florida Housing Finance Agency,
Multi-Family Housing Revenue
Bonds, Windwood Oaks Project,
Wells Fargo Bank LOC, 3.75%
variable rate, due 5/1/08 3,300,000
1,000,000 Florida Housing Finance Agency,
Multi-Family Housing Revenue,
Series 1984 C, Wells Fargo Bank
LOC, 3.75% variable rate, due
4/1/07 1,000,000
1,600,000 Hillsborough County, FL,
Industrial Development
Authority, Port Facilities
Revenue Bonds, Seaboard System
Railroad, Incorporated Project,
National Bank Detroit LOC,
3.85% variable rate, due
10/15/99 1,600,000
1,050,000 Orange County, FL, Housing
Finance Authority, Multi-Family
Guaranteed Mortgage Revenue
Refunding Bonds, Sundown
Association II, Series B, Fleet
Bank LOC, 3.75% variable rate,
due 6/1/04 1,050,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ----------------------------------------------------
5,155,000 Putnam County, FL, Development
Authority, Pollution Control
Revenue Bonds, Seminole
Electric H-3 Project, National
Rural Utilities Finance LOC,
3.25% variable rate, due
3/15/14 $ 5,149,916
1,200,000 Volusia County, FL, Health
Facilities Authority Revenue
Bonds, Alliance Community,
Rabobank Nederland LOC, 3.70%
variable rate, due 9/1/20 1,200,000
----------------
TOTAL FLORIDA 52,204,916
----------------
GEORGIA (2.2%)
2,595,000 Fulton County, GA, Industrial
Development Revenue Bonds,
guaranteed by Automatic Data
Processing, 3.85% variable
rate, due 9/1/12 2,595,000
5,860,000 Georgia State, General Obligation
Bonds, Series A, 4.50%, due
4/1/97 5,911,965
5,500,000 Marietta, GA, Multi-Family
Housing Revenue Bonds, Falls at
Bells Ferry, Guardian Savings &
Loan LOC, 3.55%, due 1/15/09,
mandatory put 1/15/97 at 100 5,500,000
----------------
TOTAL GEORGIA 14,006,965
----------------
HAWAII (5.3%)
2,290,000 Hawaii State Department of Budget
& Finance, Special Purpose
Mortgage Revenue Bonds, Kuakini
Medical Center Project, Bank of
Hawaii LOC, 3.65% variable
rate, due 7/1/04 2,290,000
</TABLE>
[LOGO]
See Notes to Financial Statements.
25
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) MAY 31, 1996
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ----------------------------------------------------
7,900,000 Hawaii State Department of Budget
& Finance, Special Purpose
Mortgage Revenue Bonds, G.N.
Wilcox Memorial Hospital
Project, Fuji Bank Ltd., NY
LOC, 4.30% variable rate, due
7/1/18 $ 7,900,000
8,400,000 Hawaii State Housing Finance &
Development Corporation,
Multi-Family Housing Revenue
Bonds, Industrial Bank of Japan
LOC, 3.80% variable rate, due
7/1/25 8,400,000
5,400,000 Hawaii State Housing, Multi-
Family Housing Revenue Bonds,
Series A, Industrial Bank of
Japan LOC, 3.80% variable rate,
due 7/1/25 5,400,000
2,000,000 Hawaii State, General Obligation
Bonds, 5.30%, due 11/1/96 2,014,440
5,000,000 Hawaii State, General Obligation
Bonds, Series CC, 3.20%, due
2/1/97 5,020,383
1,000,000 Honolulu, HI, General Obligation
Bonds, 7.10%, due 7/1/96 1,002,627
850,000 Kauai County, HI, General
Obligation Revenue Bonds, MBIA
insured, 6.60%, due 2/1/04,
prerefunded 2/1/97 at 100 866,116
1,600,000 Maui County, HI, General
Obligation Refunding Bonds,
7.10%, due 11/1/08, prerefunded
11/1/96 at 101.50 1,648,453
----------------
TOTAL HAWAII 34,542,019
----------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ----------------------------------------------------
ILLINOIS (15.1%)
1,000,000 Bedford Park, IL, Industrial
Development Revenue Bonds,
guaranteed by CPC
International, 5.28% variable
rate, due 11/1/08 $ 1,000,000
2,500,000 Chicago, IL, General Obligation
Tender Notes, Series A, Morgan
Guarantee Trust LOC, 3.65%
variable rate, due 10/31/96 2,500,000
5,000,000 Chicago, IL, Metropolitan Water,
General Obligation Refunding
Bonds, 4.00%, due 12/1/96 5,012,627
1,000,000 Cook County, IL, General
Obligation Refunding Bonds,
Series B, 3.80%, due 11/15/96 1,000,214
3,885,000 Cook County, IL, Municipal Trust
Receipts, Series SG-7, MBIA
insured, 3.65% variable rate,
due 11/15/23 3,885,000
940,000 Illinois Development Finance
Authority Development Revenue
Bonds, North Wacker Drive,
4.05% variable rate, due
12/1/15 940,000
5,000,000 Illinois Development Finance
Authority Revenue Bonds,
Supervalu, Incorporated
Project, Wachovia Corporation
LOC, 4.20% variable rate, due
2/1/01 5,000,000
1,000,000 Illinois Development Finance
Authority Revenue Bonds,
guaranteed by CPC
International, 5.28% variable
rate, due 9/1/97 1,000,000
</TABLE>
[LOGO]
See Notes to Financial Statements.
26
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) MAY 31, 1996
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ----------------------------------------------------
21,900,000 Illinois Development Finance
Authority, Multi-Family Housing
Revenue Bonds, Garden Glen
Apartments, guaranteed by
Continental Casualty Company,
4.05% variable rate, due
12/1/13 $ 21,900,000
4,500,000 Illinois Educational Facilities
Authority Revenue Bonds, Art
Institute of Chicago, Sumitomo
Bank Ltd. LOC, 3.65% variable
rate, due 3/1/27 4,500,000
1,600,000 Illinois Health Care Facilities,
Northwestern Memorial Hospital,
Health Care Revenue Bonds,
3.70% variable rate, due
8/15/25 1,600,000
12,000,000 Illinois Health Facilities
Authority Revenue Bonds,
Evanston Hospital, Series B,
3.15% variable rate, due
8/15/15, mandatory put 1/31/97
at 100 12,000,000
9,345,000 Illinois Health Facilities
Authority Revenue Bonds, Grant
Hospital, Chicago, 7.50%, due
6/1/13, prerefunded 12/1/96 at
102 9,717,624
2,600,000 Illinois Health Facilities
Authority Revenue Bonds,
Resurrection Health Care
System, 3.80% variable rate,
due 5/1/11 2,600,000
2,700,000 Illinois Health Facilities
Authority Revenue, Health Care
Revenue Bonds, Auction
Rate-Servant Cor, Series B, FSA
insured, 3.90% variable rate,
due 8/15/17 2,700,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ----------------------------------------------------
7,300,000 Illinois Health Facilities
Authority, Health Care Revenue
Bonds, Condell Memorial
Hospital, Bank of Tokyo LOC,
4.25% variable rate, due
11/1/05 $ 7,300,000
6,800,000 Lombard, IL, Industrial
Development Revenue Refunding
Bonds, 2500 Highland Avenue,
Mid-America Federal Savings &
Loan LOC, 4.00% variable rate,
due 12/1/06 6,800,000
4,770,000 Palatine, IL, Multi-Family
Housing Revenue Bonds, Hamilton
Place Project, Concordia &
Elmhurst Federal Savings & Loan
LOC, 4.05% variable rate, due
12/1/08 4,770,000
4,100,000 Springfield, IL, Transportation
Revenue Bonds, guaranteed by
Allied Signal, 3.80% variable
rate, due 10/15/16 4,100,000
----------------
TOTAL ILLINOIS 98,325,465
----------------
INDIANA (0.8%)
4,000,000 Indiana Bond Bank Notes, Advance
Funding Program, 4.25%, due
1/9/97 4,017,470
1,500,000 Indianapolis, IN, Local Public
Improvement Municipal Notes,
Series E, 4.50%, due 7/11/96 1,501,221
----------------
TOTAL INDIANA 5,518,691
----------------
IOWA (5.0%)
3,800,000 Algona, IA, Industrial
Development Revenue Bonds,
George A. Hormel & Company
Project, Sumitomo Bank Ltd.
LOC, 4.15% variable rate, due
5/1/05 3,800,000
</TABLE>
[LOGO]
See Notes to Financial Statements.
27
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) MAY 31, 1996
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ----------------------------------------------------
4,600,000 Des Moines, IA, Industrial
Development Revenue Bonds,
Grand Office Park, 3.90%
variable rate, due 4/1/15 $ 4,600,000
1,130,000 Iowa Finance Authority,
Single-Family Mortgage Revenue
Bonds, Series A, FGIC insured,
3.10% variable rate, due
7/1/10, mandatory put 2/27/97
at 100 1,130,000
530,000 Iowa Finance Authority,
Single-Family Mortgage Revenue
Bonds, Series A, FGIC insured,
3.10% variable rate, due
7/1/16, mandatory put 2/27/97
at 100 530,000
8,020,000 Iowa School Corporations,
Educational Facilities Revenue
Bonds, Warrants Certificates,
Series B, 4.25% variable rate,
due 1/30/97 8,065,805
4,000,000 Urbandale, IA, Industrial
Development Revenue Bonds,
Aurora Business Park
Association Project, guaranteed
by Principal Mutual Life
Insurance, 3.95% variable rate,
due 10/1/15 4,000,000
6,000,000 Urbandale, IA, Industrial
Development Revenue Bonds,
Interstate Acres L.P. Project,
guaranteed by Principal Mutual
Life Insurance, 3.85% variable
rate, due 12/1/14 6,000,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ----------------------------------------------------
4,605,000 Urbandale, IA, Industrial
Development Revenue Bonds,
Meredith Drive Association
Project, guaranteed by
Principal Mutual Life
Insurance, 3.90% variable rate,
due 11/1/15 $ 4,605,000
----------------
TOTAL IOWA 32,730,805
----------------
KANSAS (0.9%)
4,760,000 Johnson County, KS, General
Obligation Bonds, 3.75%, due
9/1/96 4,762,183
1,200,000 Prairie Village, KS, Multi-Family
Housing Revenue Bonds, J.C.
Nichols Company Project,
guaranteed by Principal Mutual
Life Insurance, 3.90% variable
rate, due 12/1/15 1,200,000
----------------
TOTAL KANSAS 5,962,183
----------------
KENTUCKY (0.2%)
1,480,000 Pendleton County, KY, General
Obligation Revenue Bonds, Self
Insurance Funding for Kentucky
Association of Counties Fund,
4.00% variable rate, due 7/1/96 1,480,000
----------------
TOTAL KENTUCKY 1,480,000
----------------
</TABLE>
[LOGO]
See Notes to Financial Statements.
28
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) MAY 31, 1996
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ----------------------------------------------------
LOUISIANA (1.7%)
3,050,000 Bossier Parish, LA, Industrial
Development Board,
Incorporated, Economic
Development Revenue Bonds, H.J.
Wilson, Incorporated Project,
Canadian Imperial Bank LOC,
4.00% variable rate, due
12/1/07, mandatory put 12/1/96
at 100 $ 3,052,186
3,200,000 Caddo Parish, LA, Industrial
Development Board, Pollution
Control Revenue Bonds, Pennzoil
Company Project, Mellon Bank
LOC, 4.20% variable rate, due
12/1/12 3,200,000
4,615,000 Louisiana Public Facilities
Authority, Hospital Equipment
Revenue Refunding Bonds, Series
A, Sumitomo Bank Ltd. LOC,
4.00% variable rate, due
12/1/05 4,615,000
----------------
TOTAL LOUISIANA 10,867,186
----------------
MAINE (0.6%)
4,000,000 State of Maine, General
Obligation Bonds, 4.30%, due
9/1/96 4,006,173
----------------
TOTAL MAINE 4,006,173
----------------
MARYLAND (3.2%)
7,500,000 Baltimore, MD, Industrial
Development Revenue Bonds,
Dai-Ichi Kangyo Ltd. LOC, 3.85%
variable rate, due 8/1/16 7,500,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ----------------------------------------------------
3,500,000 Howard County, MD, Multi-Family
Housing Revenue Bonds, Sherwood
Crossing Limited Project,
Guardian Savings & Loan LOC,
3.75% variable rate, due
6/1/08, mandatory put 6/1/97 at
100 $ 3,500,000
2,500,000 Maryland State, Industrial
Authority Economic Development
Revenue Bonds, Johnson Controls
Incorporated, 3.80% variable
rate, due 12/1/03 2,500,000
6,900,000 Montgomery County, MD, Housing
Opportunities Commission,
Multi-Family Housing Revenue
Refunding Bonds, Issue I,
guaranteed by Commonwealth
Life, 3.85% variable rate, due
11/1/20 6,900,000
----------------
TOTAL MARYLAND 20,400,000
----------------
MASSACHUSETTS (1.5%)
5,000,000 Massachusetts State, General
Obligation Bonds, Series A,
4.25% variable rate, due
6/12/96 5,000,434
5,000,000 Massachusetts State, Industrial
Finance Agency Revenue Bonds,
3.65% variable rate, due 3/1/26 5,000,000
----------------
TOTAL MASSACHUSETTS 10,000,434
----------------
MICHIGAN (1.2%)
4,800,000 Flint, MI, Hospital Building
Authority Revenue Bonds, Hurley
Medical Center, Series B, La
Salle National Bank LOC, 3.75%
variable rate, due 7/1/15 4,800,000
</TABLE>
[LOGO]
See Notes to Financial Statements.
29
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) MAY 31, 1996
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ----------------------------------------------------
1,000,000 Michigan State, Hospital Finance
Authority Revenue Bonds,
Hosiptal Equipment Loan
Program, Series A, First of
America LOC, 3.70% variable
rate, due 12/1/23 $ 1,000,000
2,000,000 Michigan State, Industrial
Development Revenue Bonds,
Detroit Edison, 3.65% variable
rate, due 9/1/30 2,000,000
----------------
TOTAL MICHIGAN 7,800,000
----------------
MINNESOTA (5.6%)
3,245,000 Alberta Lea, MN, Independent
School District, General
Obligation Tax Anticipation
Notes, 3.63%, due 3/28/97 3,254,621
2,350,000 Cottage Grove, MN, Industrial
Development Revenue Bonds,
SuperValu, Incorporated
Project, 4.20% variable rate,
due 10/1/05 2,350,000
1,000,000 Fridley, MN, Industrial
Development Revenue Bonds,
Longview Fibre Company,
Algemene Bank Netherlands-Amro
Bank LOC, 3.65% variable rate,
due 1/1/03 1,000,000
2,105,000 Little Falls, MN, Independent
School District # 482, General
Obligation Bonds, 3.63%, due
3/21/97 2,109,781
2,900,000 Maple Grove, MN, Multi-Family
Housing Revenue Bonds, Eagle
Ridge Apartments, Sumitomo Bank
Ltd. LOC, Series A, 4.15%
variable rate, due 6/1/26 2,900,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ----------------------------------------------------
4,405,000 Mendota Heights, MN, Multi-Family
Housing Revenue Refunding
Bonds, Lexington Heights
Apartment Project, Series 1991
A, Sumitomo Bank Ltd. LOC,
4.15% variable rate, due
11/1/25 $ 4,405,000
7,045,000 Minnesota School Districts Tax &
Aid Anticipation, Certificates
of of Participation, Series
1996 B, 4.00%, due 3/14/97 7,084,794
1,400,000 Minnesota State Housing Finance
Agency, Single-Family Housing
Revenue Bonds, 3.50% variable
rate, due 7/1/25, mandatory put
12/12/96 at 100 1,400,000
4,395,000 Spring Lake Park, MN, Independent
School District #16, General
Obligation Bonds, 3.50%, due
3/31/97 4,400,242
4,600,000 St. Louis Park, MN, Industrial
Development Revenue Bonds,
Unicare Homes, Incorporated
Project, Banque Paribas LOC,
3.90% variable rate, due 8/1/14 4,600,000
1,215,000 St. Paul, MN, General Obligation
Bonds, Capital Improvement
Project, Series A, 4.00%, due
3/1/97 1,219,368
1,400,000 St. Paul, MN, Housing &
Redevelopment Authority,
Utilities Revenue Bonds,
Sumitomo Bank Ltd. LOC, 4.15%
variable rate, due 12/1/12 1,400,000
----------------
TOTAL MINNESOTA 36,123,806
----------------
</TABLE>
[LOGO]
See Notes to Financial Statements.
30
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) MAY 31, 1996
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ----------------------------------------------------
MISSOURI (4.8%)
2,755,000 Dunklin County, MO, Industrial
Development Authority Revenue
Refunding Bonds, National
HealthCorp Project, Bank of
Tokyo Ltd. LOC, 3.60% variable
rate, due 12/1/10 $ 2,755,000
1,000,000 Kansas City, MO, Industrial
Development Authority, Hospital
Revenue Bonds, MBIA insured,
3.85% variable rate, due
10/15/14 1,000,000
13,975,000 Kansas City, MO, Industrial
Development Authority,
Multi-Family Housing Revenue
Bonds, Coach House II Project,
guaranteed by Principal Mutual
Life Insurance, 3.90% variable
rate, due 12/1/15 13,975,000
2,200,000 Kansas City, MO, Industrial
Development Authority,
Multi-Family Housing Revenue
Bonds, JC Nichols Company
Project, guaranteed by
Principal Mutual Life
Insurance, 3.90% variable rate,
due 5/1/15 2,200,000
3,000,000 Missouri State Environmental
Improvement & Energy Resources
Authority, Pollution Control
Revenue Bonds, Union Electric
Company, Series B, Union Bank
of Switzerland LOC, 3.65%
variable rate, due 6/14/14,
optional put 6/1/97 at 100 3,000,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ----------------------------------------------------
5,000,000 Missouri State Health &
Educational Facilities
Authority, School District
Advance Funding Program Notes,
Series G, guaranteed by
Bayerische Landesbank, 4.50%,
due 8/19/96 $ 5,005,542
3,400,000 St. Louis, MO, Industrial
Development Authority,
Multi-Family Housing Revenue
Bonds, Cedar Run Apartments
Project, 3.75% variable rate,
due 2/1/07 3,400,000
----------------
TOTAL MISSOURI 31,335,542
----------------
MONTANA (0.5%)
3,500,000 Montana State Board of
Investments, Revenue Bonds,
Adjustable Municipal
Construction Act-Intercap,
3.35% variable rate, due 3/1/97 3,500,000
----------------
TOTAL MONTANA 3,500,000
----------------
NEW HAMPSHIRE (0.2%)
1,300,000 New Hampshire, Higher Education &
Health Facilites Authority
Revenue Bonds, Municipal Trust
Receipts, Series SG-19, 3.65%
variable rate, due 6/1/23 1,300,000
----------------
TOTAL NEW HAMPSHIRE 1,300,000
----------------
NEW JERSEY (0.7%)
2,200,000 Newark, NJ, Health Care
Facilities Revenue Bonds, New
Community Facility, Series A,
Sumitomo Bank Ltd. LOC, 3.85%,
due 6/1/30 2,200,000
</TABLE>
[LOGO]
See Notes to Financial Statements.
31
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) MAY 31, 1996
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ----------------------------------------------------
2,240,981 Seaside Heights, NJ, Bond
Anticipation Notes, 3.63%, due
2/21/97 $ 2,245,171
----------------
TOTAL NEW JERSEY 4,445,171
----------------
NEW MEXICO (1.1%)
2,600,000 Bloomfield, NM, General
Obligation Revenue Bonds,
Series A, La Salle National
Bank LOC, 3.80% variable rate,
due 11/15/10 2,600,000
2,885,000 Espanola, NM, Health Care
Revenue, Series A, La Salle
National Bank LOC, 3.80%
variable rate, due 11/15/10 2,885,000
1,735,000 Silver City, NM, General
Obligation Bonds, Series A, La
Salle National Bank LOC, 3.80%
variable rate, due 11/15/10 1,735,000
----------------
TOTAL NEW MEXICO 7,220,000
----------------
NEW YORK (2.5%)
3,200,000 County of Westchester, NY,
Industrial Development Revenue
Bonds, 4.05% variable rate, due
7/1/98 3,200,000
1,300,000 Nassau County, NY, General
Obligation Bonds, Series P,
FGIC insured, 6.30%, due
11/1/96 1,314,330
7,500,000 New York State Energy, Research &
Development Authority,
Pollution Control Revenue
Bonds, 3.25% variable rate, due
3/1/16 7,500,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ----------------------------------------------------
4,195,000 New York State Power Authority
Revenue & General Purpose
Municipal Trust Receipts,
Series SG4, 3.65% variable
rate, due 1/1/23 $ 4,195,000
----------------
TOTAL NEW YORK 16,209,330
----------------
OHIO (2.3%)
5,200,000 Hamilton County, OH, Industrial
Development Revenue Bonds,
Community Urban Redevelopment
Project, National Westminster
LOC, 3.85% variable rate, due
10/15/12 5,200,000
5,000,000 Ohio State, Industrial
Development Revenue Bonds, U.S.
Steel Corporation, Sanwa Bank
Ltd. LOC, 3.85% variable rate,
due 5/1/11 5,000,000
4,800,000 Stark County, OH, Industrial
Development Revenue Bonds,
CR/PL, Incorporated Project,
American National Bank & Trust
LOC, 4.15% variable rate, due
9/1/01 4,800,000
----------------
TOTAL OHIO 15,000,000
----------------
OKLAHOMA (0.2%)
1,400,000 Oklahoma County, Industrial
Development Revenue Bonds,
Carbon Office, 4.35% variable
rate, due 12/1/14 1,400,000
----------------
TOTAL OKLAHOMA 1,400,000
----------------
</TABLE>
[LOGO]
See Notes to Financial Statements.
32
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) MAY 31, 1996
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ----------------------------------------------------
OREGON (0.4%)
1,495,000 Metro Oregon Open Spaces Program,
General Obligation Bonds,
Series C, 6.75%, due 9/1/96 $ 1,505,361
1,338,000 Salem, OR, General Obligation
Bonds, Pedestrian Safety
Improvements, FGIC insured,
7.00%, due 5/1/97 1,377,033
----------------
TOTAL OREGON 2,882,394
----------------
PENNSYLVANIA (1.7%)
1,000,000 Berks County, PA, Industrial
Development Revenue Bonds,
guaranteed by CNA Insurance,
3.70% variable rate, due 7/1/16 1,000,000
1,100,000 Butler County, PA, Industrial
Development Authority,
Pollution Control Revenue
Bonds, Pennzoil Company
Project, Mellon Bank LOC, 4.20%
variable rate, due 12/1/12 1,100,000
4,890,000 Chartiers Valley, PA, Industrial
& Commercial Development
Authority, Industrial
Development Revenue Bonds,
guaranteed by ADP,
Incorporated, 3.85% variable
rate, due 11/15/17 4,890,000
2,000,000 Delaware County, PA, Industrial
Development Revenue Bonds,
Series G, General Electric LOC,
4.25% variable rate, due
12/1/13, mandatory put 12/1/96
at 100 2,005,287
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ----------------------------------------------------
2,000,000 Pennsylvania Intergovernmental
Coop Authority Special Tax
Revenue, Philadelphia Funding
Project, 5.00%, due 6/15/97 $ 2,026,004
----------------
TOTAL PENNSYLVANIA 11,021,291
----------------
RHODE ISLAND (2.1%)
5,000,000 Cranston, RI, Municipal Bond
Anticipation Notes, State
Street LOC, 4.15%, due 6/17/96 5,000,843
1,000,000 Providence, RI, General
Obligation Bonds, 5.85%, due
9/1/96 1,004,653
6,490,000 Rhode Island Housing & Mortgage
Finance Corporation,
MultiFamily Housing Revenue
Bonds, Series A, AMBAC insured,
5.00% variable rate, due 7/1/96 6,490,000
1,000,000 Rhode Island Port Authority &
Economic Development
Corporation, Industrial
Development Revenue Bonds,
Raytheon Project, 4.95%
variable rate, due 6/1/13 1,000,000
----------------
TOTAL RHODE ISLAND 13,495,496
----------------
SOUTH CAROLINA (1.5%)
5,000,000 City of Charleston, SC, Tax
Anticipation Notes, 3.60%, due
3/14/97 5,003,763
5,000,000 York County, SC, Pollution
Control Revenue Bonds, North
Carolina Electric Project, CFC
insured, 3.25%, due 9/15/14,
optional put 9/15/96 at 100 5,000,000
----------------
TOTAL SOUTH CAROLINA 10,003,763
----------------
</TABLE>
[LOGO]
See Notes to Financial Statements.
33
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) MAY 31, 1996
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ----------------------------------------------------
TENNESSEE (0.3%)
2,100,000 Tennessee State, General
Obligation Bonds, Series A,
6.38%, due 6/1/96 $ 2,100,000
----------------
TOTAL TENNESSEE 2,100,000
----------------
TEXAS (4.4%)
4,950,000 Bexar County, TX, Housing Finance
Corporation, Multi-Family
Housing Revenue Bonds, Park
Hill Development Project,
Series B, guaranteed by New
England Mutual Life Insurance
Company, 3.80% variable rate,
due 6/1/05 4,950,000
1,160,000 Birdville, TX, Independent School
District, General Obligation
Revenue Bonds, Permanent School
Fund, 6.00%, due 2/15/97 1,182,567
15,000,000 Harris County, TX, Health Care
Facilities Revenue Bonds, 3.95%
variable rate, due 12/1/25,
mandatory tender 12/1/98 at 100 15,000,000
1,725,000 Houston, TX, Water & Sewer
Systems Revenue Refunding
Bonds, Series A, FGIC insured,
7.13%, due 12/1/16, prerefunded
12/1/96 at 102 1,788,720
1,000,000 Lone Star, TX, Airport
Improvement Authority, Airport
Revenue Bonds, Royal Bank of
Canada LOC, 3.60% variable
rate, due 12/1/14 1,000,000
5,000,000 State of Texas, Tax & Revenue
Anticipation Notes, 4.75%, due
8/30/96 5,008,099
----------------
TOTAL TEXAS 28,929,386
----------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ----------------------------------------------------
VIRGINIA (2.2%)
3,300,000 Fairfax County, VA, Industrial
Development Revenue Bonds,
Fairfax Hospital, Series B,
guaranteed by INOVA Securities,
3.75% variable rate, due
10/1/25 $ 3,300,000
2,300,000 Fairfax County, VA, Industrial
Development Revenue Bonds,
Fairfax Hospital, Series C,
3.75% variable rate, due
10/1/25 2,300,000
1,000,000 Fairfax County, VA, Industrial
Development Revenue Bonds,
Fairfax Hospital, Series D,
guaranteed by INOVA Securities,
3.75% variable rate, due
10/1/25 1,000,000
7,500,000 Harrisonburg, VA, Multi-Family
Housing Revenue Bonds, Rolling
Brook Village Apartments,
Series A, 3.50% variable rate,
due 2/1/09, mandatory put
2/1/97 at 100 7,500,000
----------------
TOTAL VIRGINIA 14,100,000
----------------
WASHINGTON (0.5%)
1,345,000 King County, WA, School District
# 415, Kent, General Obligation
Bonds, 7.35%, due 12/1/00,
prerefunded 12/1/96 at 100 1,372,043
1,000,000 Washington State, General
Obligation Bonds, Series R-92C,
4.75% variable rate, due 9/1/96 1,002,617
</TABLE>
[LOGO]
See Notes to Financial Statements.
34
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) MAY 31, 1996
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ----------------------------------------------------
1,125,000 Washington State, Health Care
Facilities Authority Revenue
Bonds, Series 1991 C, Fred
Hutchinson Cancer Research
Center, Morgan Guaranty Trust
Company of New York LOC, 3.70%
variable rate, due 1/1/18 $ 1,125,000
----------------
TOTAL WASHINGTON 3,499,660
----------------
WASHINGTON, D.C. (2.0%)
2,100,000 District of Columbia, Educational
Facilities Revenue Bonds,
Georgetown University, Series
D, Sanwa Bank Ltd. LOC, 4.00%
variable rate, due 4/1/17 2,100,000
1,000,000 District of Columbia, General
Obligation Refunding Bonds,
Series D, CAPMAC-ITC LOC,
4.30%, due 12/1/96 1,001,907
4,000,000 District of Columbia,
Supplemental Student Loan
Revenue Bonds, CONSERN Loan
Program, Bank of
Tokyo-Mitsubishi Bank Ltd. LOC,
4.10% variable rate, due
7/1/01, optional put 7/1/96 at
100 4,000,000
6,000,000 Washington, DC, Hospital Revenue
Bonds, Columbia Women's
Hospital, Series A, Mitsubishi
Bank Ltd. LOC, 3.85% variable
rate, due 7/1/20 6,000,000
----------------
TOTAL WASHINGTON, D.C. 13,101,907
----------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ----------------------------------------------------
WISCONSIN (5.8%)
2,300,000 Alma, WI, Pollution Control
Revenue Bonds, Dairyland Power
Cooperative Project, Rabobank
Nederland LOC, 3.90% variable
rate, due 2/1/15 $ 2,300,000
1,000,000 Beloit & Rock County, WI,
Industrial Development Revenue
Bonds, guaranteed by CPC
International, 5.28% variable
rate, due 4/1/19 1,000,000
2,205,000 Johnson Controls, Incorporated,
Tax-Exempt Bond, Grantor Trust,
Wachovia Corporation LOC, 4.05%
variable rate, due 10/1/01 2,205,000
4,000,000 Milwaukee, WI, General Obligation
Bonds, School Districts, Series
B, 4.50% variable rate, due
8/22/96 4,005,343
1,115,000 Milwaukee, WI, Pollution Control
Revenue Bonds, guaranteed by
Johnson Controls Incorporated,
3.80% variable rate, due
12/1/97 1,115,000
2,000,000 Waukesha, WI, School District,
Educational Facilities Revenue
Bonds, 4.25%, due 8/23/96 2,003,271
7,500,000 Winneconne, WI, Community School
District, Bond Anticipation
Notes, 4.00%, due 2/1/97 7,510,868
8,800,000 Wisconsin State Health Facilities
Authority, Franciscan Health
Care, Series A-2, Toronto
Dominion Bank LOC, 3.65%
variable rate, due 1/1/16 8,800,000
</TABLE>
[LOGO]
See Notes to Financial Statements.
35
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONCLUDED) MAY 31, 1996
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
- ----------------------------------------------------
8,500,000 Wisconsin State, Health &
Educational Facilities Revenue
Bonds, Felician Health Care,
Incorporated, La Salle National
Bank LOC, 3.70% variable rate,
due 1/1/19 $ 8,500,000
----------------
TOTAL WISCONSIN 37,439,482
----------------
WYOMING (0.2%)
1,000,000 Green River, WY, Pollution
Control Revenue Bonds, Allied
Corporation Project, guaranteed
by Allied Signal Corporation,
4.35% variable rate, due
12/1/12 1,000,000
----------------
TOTAL WYOMING 1,000,000
----------------
OTHER TAX-EXEMPT INVESTMENTS (4.4%)
2,000,000 Mashantucket, CT, Tax-Exempt
Commercial Paper, Bank of
America LOC, 3.40%, due
10/24/96 2,000,000
1,000,000 Orange County, FL, Health
Facilities Authority, Tax-
Exempt Commercial Paper, MBIA
insured, 4.00%, due 6/3/96 1,000,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MUNICIPAL MONEY MARKET FUND (concluded)
- ----------------------------------------------------
10,000,000 Puttable Floating Option,
Tax-Exempt Receipts, Series PPT
4, 3.90% variable rate, due
10/11/15 $ 10,000,000
11,415,000 Puttable Floating Option,
Tax-Exempt Receipts, Credit
Suisse LOC, 3.90% variable
rate, due 10/20/20 11,415,000
4,000,000 St. Lucie County, FL, Power &
Light Tax-Exempt Commercial
Paper, 3.75%, due 6/5/96 4,000,000
----------------
TOTAL OTHER INVESTMENTS 28,415,000
----------------
TOTAL INVESTMENTS (100.0%) $650,471,194
----------------
----------------
- ----------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS
- ----------------------------------------------------
</TABLE>
(a) Securities that may be resold to "qualified institutional buyers" under
Rule 144A, or securities offered pursuant to Section 4(2) of the Securities
Act of 1933, as amended. These Securities have been determined to be liquid
under guidelines established by the Board of Trustees.
[LOGO]
See Notes to Financial Statements.
36
<PAGE>
Norwest Advantage Funds Bulk Rate
733 Marquette Avenue US Postage
Minneapolis, MN 55479-0040 PAID
Permit No. 3489
Mpls. MN
[LOGO]
Shareholder Services
Minneapolis/St. Paul 667-8833
Elsewhere 800-338-1348
Norwest Bank Minnesota, N.A.
Investment Adviser
Transfer Agent
Custodian
Forum Financial Services, Inc.
Manager and Distributor
- -COPYRIGHT- 1996 Norwest Advantage Funds
MFB0A 067 7/96
