<PAGE>
NORWEST ADVANTAGE FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
<TABLE>
<S> <C>
A Message to Our Shareholders.............................................................................. 1
- ---------------------------------------------------------
MONEY MARKET FUNDS
Statements of Assets and Liabilities....................................................................... 2
Statements of Operations................................................................................... 3
Statements of Changes in Net Assets........................................................................ 4
Notes to Financial Statements.............................................................................. 5
Financial Highlights....................................................................................... 8
Schedules of Investments................................................................................... 10
Cash Investment Fund.................................................................................. 10
U.S. Government Fund.................................................................................. 13
Treasury Fund......................................................................................... 14
Ready Cash Investment Fund............................................................................ 15
Municipal Money Market Fund........................................................................... 18
- ---------------------------------------------------------
FIXED INCOME FUNDS
Statements of Assets and Liabilities....................................................................... 26
Statements of Operations................................................................................... 28
Statements of Changes in Net Assets........................................................................ 30
Notes to Financial Statements.............................................................................. 32
Financial Highlights....................................................................................... 38
Schedules of Investments................................................................................... 41
Adjustable U.S Government Reserve Fund................................................................ 41
Government Income Fund................................................................................ 42
Income Fund........................................................................................... 43
Total Return Bond Fund................................................................................ 44
Tax-Free Income Fund.................................................................................. 45
Colorado Tax-Free Fund................................................................................ 51
Minnesota Tax-Free Fund............................................................................... 54
- ---------------------------------------------------------
EQUITY FUNDS
Statements of Assets and Liabilities....................................................................... 58
Statements of Operations................................................................................... 59
Statements of Changes in Net Assets........................................................................ 60
Notes to Financial Statements.............................................................................. 61
Financial Highlights....................................................................................... 66
Schedules of Investments................................................................................... 68
Income Stock Fund..................................................................................... 68
ValuGrowth Stock Fund................................................................................. 69
Small Company Stock Fund.............................................................................. 70
Contrarian Stock Fund................................................................................. 71
</TABLE>
<PAGE>
NORWEST ADVANTAGE FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
A MESSAGE TO OUR SHAREHOLDERS
Dear Shareholders,
Norwest Advantage Funds is pleased to present its 1995 Semi-Annual Report
for the period from June 1, 1995, through November 30, 1995. The stock and bond
markets performed exceptionally well during this period and for all of 1995. As
of November 30, 1995, total return year-to-date was 35% for the stock market as
measured by the Standard and Poor's 500 Stock Index and 17% for the bond market
as measured by the Lehman Brothers Aggregate Bond Index.
Some of the gains in stock prices in 1995 can be attributed to growth in
corporate earnings. Although the economy slowed this year, earnings were strong
due to corporate restructuring and increased productivity. Long-term interest
rates fell, causing bond prices to rise; and short-term interest rates rose,
making money market securities more attractive to investors.
After an exciting year in the stock and bond markets, opinions and ideas on
the outlook for 1996 vary. Some feel that the upward trend will continue, while
others think a correction in the financial markets is imminent. Considering the
current wide gap between the inflation rate and short-term interest rates, the
Fed may choose to lower long-term interest rates. If long-term interest rates
decrease, investors in search of higher yields may move some of their cash from
money market securities to stock and bond funds, pushing stock and bond prices
up further. On the other hand, stock prices may increase less in 1996 because of
flatter corporate earnings caused by continued slow economic growth and
diminished corporate opportunities to restructure and increase productivity.
Regardless of what occurs in the financial markets, Norwest Advantage Funds, as
a complete mutual fund family, will be optimally positioned to take advantage of
the opportunities available.
Norwest Funds changed its name to Norwest Advantage Funds on October 1,
1995. The name change is part of a continuing effort to offer the mutual funds
advised by Norwest Investment Management in one integrated fund family.
Previously, only the mutual funds offered through 401(k) plans used the name
Norwest Advantage Funds. Along with the new name, the funds moved to a new
design for brochures, statements, and other documents. The cover of this
Semi-Annual Report and the prospectuses you received in October reflect the new
look.
We anticipate continued prosperity in Norwest Advantage Funds throughout
the rest of the fiscal year and will strive for superior performance. If you
have any questions or need additional information, please call Norwest Advantage
Funds Shareholder Services at 800-338-1348 or 612-667-8883 and press 1. Thank
you for choosing to invest with Norwest Advantage Funds.
Sincerely,
JOHN Y. KEFFER
Chairman
Norwest Advantage Funds
1
<PAGE>
NORWEST ADVANTAGE FUNDS -- MONEY MARKET FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (NOVEMBER 30, 1995)
<TABLE>
<CAPTION>
READY
CASH U.S. CASH
INVESTMENT GOVERNMENT TREASURY INVESTMENT
FUND FUND FUND FUND
-------------- -------------- ------------ --------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value(a)........................ $1,660,513,889 $1,492,541,968 $675,159,478 $1,143,243,400
Cash............................................ 10,074 -- -- --
Interest, dividends and other receivables....... 6,210,378 3,252,069 1,860,686 3,706,011
Receivable for securities sold.................. 35,697,762 -- 46,192,712 --
Receivable for principal paydowns............... 269,362 -- -- 17,299
-------------- -------------- ------------ --------------
Total assets..................................... 1,702,701,465 1,495,794,037 723,212,876 1,146,966,710
-------------- -------------- ------------ --------------
LIABILITIES:
Payable for securities purchased................ -- -- -- --
Investment advisory, transfer agency and
custodial fees payable........................ 538,938 496,145 234,041 428,385
Management fee payable.......................... 93,330 20,282 -- 30,720
Accrued expenses and other payables............. 8,414 26,255 2,242 15,140
Dividends payable............................... 7,348,747 6,379,763 2,884,977 4,694,593
-------------- -------------- ------------ --------------
Total liabilities................................ 7,989,429 6,922,445 3,121,260 5,168,838
-------------- -------------- ------------ --------------
NET ASSETS....................................... $1,694,712,036 $1,488,871,592 $720,091,616 $1,141,797,872
-------------- -------------- ------------ --------------
-------------- -------------- ------------ --------------
COMPONENTS OF NET ASSETS:
Capital paid in................................. $1,696,799,437 $1,489,336,619 $720,171,675 $1,141,864,668
Unrealized depreciation......................... -- -- -- --
Accumulated net realized losses................. (2,087,401) (465,027) (80,059) (66,796)
-------------- -------------- ------------ --------------
NET ASSETS....................................... $1,694,712,036 $1,488,871,592 $720,091,616 $1,141,797,872
-------------- -------------- ------------ --------------
-------------- -------------- ------------ --------------
NET ASSETS BY CLASS OF SHARES:
Single class funds.............................. $1,694,712,036 $1,488,871,592 $720,091,616 --
Investor shares................................. -- -- -- $ 376,367,982
Exchange shares................................. -- -- -- 121,193
Institutional shares............................ -- -- -- 765,308,697
-------------- -------------- ------------ --------------
NET ASSETS....................................... $1,694,712,036 $1,488,871,592 $720,091,616 $1,141,797,872
-------------- -------------- ------------ --------------
-------------- -------------- ------------ --------------
SHARES OUTSTANDING:
Single class funds.............................. 1,696,871,937 1,489,436,619 720,171,675 --
-------------- -------------- ------------ --------------
-------------- -------------- ------------ --------------
Investor shares................................. -- -- -- 376,388,487
-------------- -------------- ------------ --------------
-------------- -------------- ------------ --------------
Exchange shares................................. -- -- -- 121,229
-------------- -------------- ------------ --------------
-------------- -------------- ------------ --------------
Institutional shares............................ -- -- -- 765,367,304
-------------- -------------- ------------ --------------
-------------- -------------- ------------ --------------
NET ASSET VALUE PER SHARE:
All share classes............................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------------- -------------- ------------ --------------
-------------- -------------- ------------ --------------
(a) Cost of investments.......................... $1,660,513,889 $1,492,541,968 $675,159,478 $1,143,243,400
<CAPTION>
NORWEST ADVANTAGE FUNDS -- MONEY MARKET FUNDS
<S> <C>
- ----------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (NOVEMBER 30, 1995)
MUNICIPAL
MONEY MARKET
FUND
------------
<S> <C>
ASSETS:
Investments, at value(a)........................ $418,830,530
Cash............................................ 22,824
Interest, dividends and other receivables....... 2,773,132
Receivable for securities sold.................. 10,983,015
Receivable for principal paydowns............... --
------------
Total assets..................................... 432,609,501
------------
LIABILITIES:
Payable for securities purchased................ 5,001,865
Investment advisory, transfer agency and
custodial fees payable........................ 180,735
Management fee payable.......................... --
Accrued expenses and other payables............. 81,939
Dividends payable............................... 1,199,215
------------
Total liabilities................................ 6,463,754
------------
NET ASSETS....................................... $426,145,747
------------
------------
COMPONENTS OF NET ASSETS:
Capital paid in................................. $427,437,411
Unrealized depreciation......................... (1,200,000)
Accumulated net realized losses................. (91,664)
------------
NET ASSETS....................................... $426,145,747
------------
------------
NET ASSETS BY CLASS OF SHARES:
Single class funds.............................. --
Investor shares................................. $ 56,834,240
Exchange shares................................. --
Institutional shares............................ 369,311,507
------------
NET ASSETS....................................... $426,145,747
------------
------------
SHARES OUTSTANDING:
Single class funds.............................. --
------------
------------
Investor shares................................. 56,848,943
------------
------------
Exchange shares................................. --
------------
------------
Institutional shares............................ 369,398,269
------------
------------
NET ASSET VALUE PER SHARE:
All share classes............................... $ 1.00
------------
------------
(a) Cost of investments.......................... $420,030,530
</TABLE>
See notes to financial statements.
2
<PAGE>
NORWEST ADVANTAGE FUNDS -- MONEY MARKET FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (PERIOD ENDED NOVEMBER 30, 1995)
<TABLE>
<CAPTION>
CASH U.S. READY CASH MUNICIPAL
INVESTMENT GOVERNMENT TREASURY INVESTMENT MONEY
FUND FUND FUND FUND MARKET FUND
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income....................................... $46,415,087 $39,930,126 $19,478,569 $27,008,878 $ 7,623,800
----------- ----------- ----------- ----------- -----------
EXPENSES:
Advisory.............................................. 1,121,902 1,017,601 616,449 1,624,316 661,791
Management............................................ 509,126 465,667 297,769 890,197 378,166
Transfer agent........................................ 1,920,628 1,703,336 871,172 686,886 229,192
Custodian............................................. 84,325 75,634 42,347 52,010 26,408
Professional services................................. 21,712 19,478 10,352 13,050 12,595
Filing................................................ 112,062 195,466 86,073 177,447 122,326
Accounting............................................ 18,000 18,000 18,000 24,000 30,000
Trustees.............................................. 14,670 13,270 7,020 8,107 3,639
Distribution.......................................... -- -- -- 748 --
Other................................................. 16,044 12,652 7,113 9,954 38,052
----------- ----------- ----------- ----------- -----------
Total expenses......................................... 3,818,469 3,521,104 1,956,295 3,486,715 1,502,169
Expenses reimbursed and fees waived................... (119,669 ) (105,009 ) (348,916) (794,227 ) (586,513)
----------- ----------- ----------- ----------- -----------
Net expenses........................................... 3,698,800 3,416,095 1,607,379 2,692,488 915,656
----------- ----------- ----------- ----------- -----------
NET INVESTMENT INCOME.................................. 42,716,287 36,514,031 17,871,190 24,316,390 6,708,144
----------- ----------- ----------- ----------- -----------
REALIZED GAIN ON INVESTMENTS........................... 79,888 61,659 101,578 2,814 --
----------- ----------- ----------- ----------- -----------
INCREASE IN NET ASSETS FROM OPERATIONS................. $42,796,175 $36,575,690 $17,972,768 $24,319,204 $ 6,708,144
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
</TABLE>
See notes to financial statements.
3
<PAGE>
NORWEST ADVANTAGE FUNDS -- MONEY MARKET FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
(YEAR ENDED MAY 31, 1995 AND THE PERIOD ENDED NOVEMBER 30, 1995)
<TABLE>
<CAPTION>
READY
CASH U.S. CASH
INVESTMENT GOVERNMENT TREASURY INVESTMENT
FUND FUND FUND FUND
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
NET ASSETS -- May 31, 1994.......................... $ 1,381,401,842 $1,091,140,740 $ 526,482,768 $ 497,752,563
--------------- --------------- --------------- ---------------
OPERATIONS:
Net investment income.............................. 67,650,548 50,247,378 29,859,162 27,481,671
Realized gain (loss) on investments................ (889,228) (526,904 ) 163,786 (69,633)
Change in unrealized depreciation.................. -- -- -- --
--------------- --------------- --------------- ---------------
66,761,320 49,720,474 30,022,948 27,412,038
--------------- --------------- --------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income.............................. (67,650,548) (50,247,378 ) (29,859,162) --
Net investment income -- Investor shares........... -- -- -- (9,075,639)
Net investment income -- Exchange shares........... -- -- -- (7,558)
Net investment income -- Institutional shares...... -- -- -- (18,398,474)
Realized gain on investments....................... -- (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)
--------------- --------------- --------------- ---------------
CAPITAL SHARE TRANSACTIONS:(a)
Sale of shares..................................... 12,602,596,403 5,940,912,543 3,390,161,959 --
Sale of shares -- Investor shares.................. -- -- -- 599,200,073
Sale of shares -- Exchange shares.................. -- -- -- 229,572
Sale of shares -- Institutional shares............. -- -- -- 1,465,894,906
Reinvested dividends............................... 44,264,813 13,709,922 12,227,733 --
Reinvested dividends -- Investor shares............ -- -- -- 8,269,655
Reinvested dividends -- Exchange shares............ -- -- -- 7,094
Reinvested dividends -- Institutional shares....... -- -- -- 35,387
Cost of shares repurchased......................... (12,563,069,929) (5,885,641,030 ) (3,267,938,679) --
Cost of shares repurchased -- Investor shares...... -- -- -- (502,974,022)
Cost of shares repurchased -- Exchange shares...... -- -- -- (227,749)
Cost of shares repurchased -- Institutional
shares........................................... -- -- -- (1,293,090,276)
Capital contribution from Adviser.................. -- -- -- --
--------------- --------------- --------------- ---------------
83,791,287 68,981,435 134,451,013 277,344,640
--------------- --------------- --------------- ---------------
NET ASSETS -- May 31, 1995.......................... 1,464,303,901 1,159,421,353 661,097,567 775,006,153
--------------- --------------- --------------- ---------------
OPERATIONS:
Net investment income.............................. 42,716,287 36,514,031 17,871,190 24,316,390
Realized gain on investments....................... 79,888 61,659 101,578 2,814
--------------- --------------- --------------- ---------------
42,796,175 36,575,690 17,972,768 24,319,204
--------------- --------------- --------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income.............................. (42,716,287) (36,514,031 ) (17,871,190) --
Net investment income -- Investor shares........... -- -- -- (8,452,846)
Net investment income -- Exchange shares........... -- -- -- (3,368)
Net investment income -- Institutional shares...... -- -- -- (15,860,176)
Realized gain on investments....................... -- -- -- --
Realized gain on investments -- Investor shares.... -- -- -- --
Realized gain on investments -- Exchange shares.... -- -- -- --
Realized gain on investments -- Institutional
shares........................................... -- -- -- --
--------------- --------------- --------------- ---------------
(42,716,287) (36,514,031 ) (17,871,190) (24,316,390)
--------------- --------------- --------------- ---------------
CAPITAL SHARE TRANSACTIONS:(a)
Sale of shares..................................... 7,759,416,305 3,770,928,298 1,694,936,007 --
Sale of shares -- Investor shares.................. -- -- -- 430,631,721
Sale of shares -- Exchange shares.................. -- -- -- 5,633
Sale of shares -- Institutional shares............. -- -- -- 1,075,216,547
Reinvested dividends............................... 31,030,032 7,321,082 6,848,458 --
Reinvested dividends -- Investor shares............ -- -- -- 8,054,750
Reinvested dividends -- Exchange shares............ -- -- -- 3,541
Reinvested dividends -- Institutional shares....... -- -- -- 5,968
Cost of shares repurchased......................... (7,560,118,090) (3,448,860,800 ) (1,642,891,994) --
Cost of shares repurchased -- Investor shares...... -- -- -- (330,922,573)
Cost of shares repurchased -- Exchange shares...... -- -- -- (47,612)
Cost of shares repurchased -- Institutional
shares........................................... -- -- -- (816,159,070)
--------------- --------------- --------------- ---------------
230,328,247 329,388,580 58,892,471 366,788,905
--------------- --------------- --------------- ---------------
NET ASSETS -- November 30, 1995..................... $ 1,694,712,036 $1,488,871,592 $ 720,091,616 $ 1,141,797,872
--------------- --------------- --------------- ---------------
--------------- --------------- --------------- ---------------
NORWEST ADVANTAGE FUNDS -- MONEY MARKET FUNDS
- ----------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
(YEAR ENDED MAY 31, 1995 AND THE PERIOD ENDED NOVE
<CAPTION>
MUNICIPAL MONEY
MARKET
FUND
---------------
<S> <C>
NET ASSETS -- May 31, 1994.......................... $ 223,909,511
---------------
OPERATIONS:
Net investment income.............................. 9,389,872
Realized gain (loss) on investments................ (39,388)
Change in unrealized depreciation.................. (1,200,000)
---------------
8,150,484
---------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income.............................. --
Net investment income -- Investor shares........... (1,283,965)
Net investment income -- Exchange shares........... --
Net investment income -- Institutional shares...... (8,105,907)
Realized gain on investments....................... --
Realized gain on investments -- Investor shares.... --
Realized gain on investments -- Exchange shares.... --
Realized gain on investments -- Institutional
shares........................................... --
---------------
(9,389,872)
---------------
CAPITAL SHARE TRANSACTIONS:(a)
Sale of shares..................................... --
Sale of shares -- Investor shares.................. 140,791,278
Sale of shares -- Exchange shares.................. --
Sale of shares -- Institutional shares............. 1,449,036,966
Reinvested dividends............................... --
Reinvested dividends -- Investor shares............ 1,206,491
Reinvested dividends -- Exchange shares............ --
Reinvested dividends -- Institutional shares....... 2,619,533
Cost of shares repurchased......................... --
Cost of shares repurchased -- Investor shares...... (128,120,128)
Cost of shares repurchased -- Exchange shares...... --
Cost of shares repurchased -- Institutional
shares........................................... (1,363,027,207)
Capital contribution from Adviser.................. 1,200,000
---------------
103,706,933
---------------
NET ASSETS -- May 31, 1995.......................... 326,377,056
---------------
OPERATIONS:
Net investment income.............................. 6,708,144
Realized gain on investments....................... --
---------------
6,708,144
---------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income.............................. --
Net investment income -- Investor shares........... (902,576)
Net investment income -- Exchange shares........... --
Net investment income -- Institutional shares...... (5,805,568)
Realized gain on investments....................... --
Realized gain on investments -- Investor shares.... --
Realized gain on investments -- Exchange shares.... --
Realized gain on investments -- Institutional
shares........................................... --
---------------
(6,708,144)
---------------
CAPITAL SHARE TRANSACTIONS:(a)
Sale of shares..................................... --
Sale of shares -- Investor shares.................. 57,179,307
Sale of shares -- Exchange shares.................. --
Sale of shares -- Institutional shares............. 673,175,481
Reinvested dividends............................... --
Reinvested dividends -- Investor shares............ 884,489
Reinvested dividends -- Exchange shares............ --
Reinvested dividends -- Institutional shares....... 1,653,440
Cost of shares repurchased......................... --
Cost of shares repurchased -- Investor shares...... (48,653,878)
Cost of shares repurchased -- Exchange shares...... --
Cost of shares repurchased -- Institutional
shares........................................... (584,470,148)
---------------
99,768,691
---------------
NET ASSETS -- November 30, 1995..................... $ 426,145,747
---------------
---------------
</TABLE>
(a) Share transactions at net asset value of $1.00 per share.
See notes to financial statements.
4
<PAGE>
NORWEST ADVANTAGE FUNDS -- MONEY MARKET FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Norwest Advantage Funds (the 'Trust') is registered as an open-end
management investment company. The Trust currently has five money market
investment portfolios (each a 'Fund'). The classes of each Fund 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>
Exchange shares are sold only through the exchange privilege available to
shareholders of B shares of the Norwest Advantage Fixed Income and Equity Funds
and are subject to a contingent deferred sales charge upon redemption.
Institutional shares and Investor shares shareholders incur neither a front-end
nor contingent deferred sales charge. The difference between these two share
types is the minimum investment required and the level of shareholder service
expenses.
Each Fund is diversified. Prior to July 31, 1993, the Trust's operation was
conducted as Prime Value Funds, Inc., a Maryland corporation. The Funds'
financial statements are prepared in accordance with generally accepted
accounting principles. The Trust Instrument authorizes the issuance of an
unlimited number of shares of beneficial interest without par value.
FINANCIAL STATEMENT PERIODS AND CHANGE OF FISCAL YEAR -- For certain Funds
and 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.
SECURITY VALUATION -- The Funds value securities utilizing the amortized
cost method. Under this method all investments purchased at a discount or
premium are valued by accreting or amortizing, respectively, the difference
between the original purchase price and maturity value of the issue over the
period to maturity.
Realized gains and losses on investments sold are recorded on the basis of
identified cost.
Security transactions are accounted for on a trade date basis.
The cost basis for federal income tax purposes is the same as for financial
accounting purposes.
Delivery and payment for securities which have been purchased by the Funds
on a forward commitment or when issued basis take place after normal settlement
dates. During this period, the Funds are subject to market fluctuations in the
price of the purchased securities.
REPURCHASE AGREEMENTS -- Each Fund may purchase portfolio securities from
financial institutions deemed to be creditworthy by the investment adviser
subject to the seller's agreement to repurchase and the Fund's agreement to
resell such securities. Securities purchased subject to 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 underlying securities 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, often based upon the prevailing overnight 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 November 30, 1995. 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 of the period remaining until 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.
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, unless offset by any available
capital loss carryovers, is distributed to shareholders at least annually.
5
<PAGE>
NORWEST ADVANTAGE FUNDS -- MONEY MARKET FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
EXPENSE ALLOCATION -- Each share of each class represents an undivided,
proportionate interest in the Fund. The Funds' class specific expenses include
distribution expenses, if any, transfer agent fees and expenses and certain
other expenses that can be solely attributable to a class.
FEDERAL INCOME TAX -- Each Fund has qualified, and intends to continue to
qualify, as a regulated investment company and distributes all of its taxable
income. Therefore, each Fund is not subject to Federal income tax. As of May 31,
1995, certain of the Funds have capital loss carryovers available to offset
future capital gains as follows:
<TABLE>
<CAPTION>
YEAR OF EXPIRATION
---------------------------------------------
2001 2002 2003 TOTAL
-------- -------- ---------- ----------
<S> <C> <C> <C> <C>
Cash Investment Fund......................................... $153,696 $ -- $2,013,410 $2,167,106
U.S. Government Fund......................................... -- -- 526,904 526,904
Treasury Fund................................................ 26 180,421 73,190 181,637
Ready Cash Investment Fund................................... -- -- 69,633 69,633
Municipal Money Market Fund.................................. -- 72,404 72,404
</TABLE>
2. ADVISORY, SERVICING FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The investment adviser of each Fund is Norwest Investment Management, a part
of Norwest Bank Minnesota, N.A. (the 'Adviser'). Norwest Bank Minnesota, N.A. 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.
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, expiring on June 30, 1996. The
Adviser has agreed to reimburse Trust Company Bank for any payments made by them
to the Fund. As of November 30, 1995, no payments were received from Trust
Company Bank in connection with this LOC.
Norwest Bank Minnesota, N.A. 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 manager of the Trust is Forum Financial Services, Inc. ('Forum'), a
registered broker-dealer and a member of the National Association of Securities
Dealers, Inc. Forum receives a management fee for its services 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 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 Cash Investment Fund, U.S.
Government Fund, Treasury Fund, Ready Cash Investment Fund and Municipal Money
Market Fund were: $14,855, $13,132, $6,970, $8,464, $3,596.
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.
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 a
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 period ended November 30, 1995. The distribution
payments are used to reimburse the distributor for (i) sales commissions at
levels set from time to time by the Board
6
<PAGE>
NORWEST ADVANTAGE FUNDS -- MONEY MARKET FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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.
In the event that the Plan is terminated or not continued, the Fund will
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 November 30, 1995 for Ready Cash
Investment Fund were $11,027.
For the period ended November 30, 1995, fees waived and expenses reimbursed
by the Trust's custodian and transfer agent, investment adviser, and manager and
distributor were as follows:
<TABLE>
<CAPTION>
FEES WAIVED EXPENSES
-------------------------------------- REIMBURSED
CUSTODIAN AND ----------
TRANSFER AGENT ADVISER FORUM FORUM
-------------- -------- -------- ----------
<S> <C> <C> <C> <C>
Cash Investment Fund...................................... $ 2,873 $ -- $116,796 $ --
U.S. Government Fund...................................... 7,972 -- 97,037 --
Treasury Fund............................................. 136,093 -- 212,823 --
Ready Cash Investment Fund................................ 125,571 37,419 631,237 --
Municipal Money Market Fund............................... 102,041 113,450 371,022 --
</TABLE>
3. PURCHASES AND SALES OF SECURITIES
Cost of purchases and proceeds from sales (including maturities) of
securities during the period ended November 30, 1995 were as follows:
<TABLE>
<CAPTION>
COST OF PROCEEDS
PURCHASES FROM SALES
--------------- ---------------
<S> <C> <C>
Cash Investment Fund........................................................ $33,191,617,323 $33,017,193,637
U.S. Government Fund........................................................ 45,827,945,624 45,514,087,193
Treasury Fund............................................................... 6,382,457,621 6,386,607,699
Ready Cash Investment Fund.................................................. 19,742,973,090 19,398,568,017
Municipal Money Market Fund................................................. 911,559,408 821,162,494
</TABLE>
7
<PAGE>
NORWEST ADVANTAGE FUNDS -- MONEY MARKET FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING DURING THE PERIOD
<TABLE>
<CAPTION>
RATIOS TO
AVERAGE
NET ASSETS
BEGINNING NET REALIZED DIVIDENDS -----------
NET ASSET NET AND UNREALIZED FROM NET DISTRIBUTIONS CAPITAL ENDING NET
VALUE PER INVESTMENT GAIN (LOSS) ON INVESTMENT FROM NET CONTRIBUTION ASSET VALUE
SHARE INCOME INVESTMENTS INCOME REALIZED GAINS FROM ADVISER PER SHARE EXPENSES(A)
--------- ---------- --------------- ---------- -------------- ------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CASH INVESTMENT FUND
Period Ended November 30,
1995...................... $1.00 $0.028 $ -- ($ 0.028) $ -- $ -- $1.00 0.48%(b)
Year Ended May 31,
1995...................... 1.00 0.049 -- (0.049) -- -- 1.00 0.48%
1994...................... 1.00 0.031 -- (0.031) -- -- 1.00 0.49%
1993...................... 1.00 0.033 -- (0.033) -- -- 1.00 0.50%
Six Months Ended May 31,
1992(d)................... 1.00 0.021 -- (0.021) -- -- 1.00 0.50%(b)
Year Ended November 30,
1991...................... 1.00 0.061 -- (0.061) -- -- 1.00 0.51%
1990...................... 1.00 0.079 -- (0.079) -- -- 1.00 0.45%
U.S. GOVERNMENT FUND
Period Ended November 30,
1995...................... 1.00 0.027 -- (0.027) -- -- 1.00 0.50%(b)
Year Ended May 31,
1995...................... 1.00 0.047 -- (0.047) -- -- 1.00 0.50%
1994...................... 1.00 0.030 -- (0.030) -- -- 1.00 0.47%
1993...................... 1.00 0.030 -- (0.030) -- -- 1.00 0.45%
Six Months Ended May 31,
1992(d)................... 1.00 0.020 -- (0.020) -- -- 1.00 0.45%(b)
Year Ended November 30,
1991...................... 1.00 0.058 -- (0.058) -- -- 1.00 0.45%
1990...................... 1.00 0.077 -- (0.077) -- -- 1.00 0.45%
TREASURY FUND
Period Ended November 30,
1995...................... 1.00 0.026 -- (0.026) -- -- 1.00 0.46%(b)
Year Ended May 31,
1995...................... 1.00 0.046 -- (0.046) -- -- 1.00 0.46%
1994...................... 1.00 0.028 -- (0.028) -- -- 1.00 0.46%
1993...................... 1.00 0.029 -- (0.029) -- -- 1.00 0.47%
Six Months Ended May 31,
1992(d)................... 1.00 0.020 -- (0.020) -- -- 1.00 0.47%(b)
Period Ended November 30,
1991(c)................... 1.00 0.058 -- (0.058) -- -- 1.00 0.31%(b)
READY CASH INVESTMENT FUND
INVESTOR SHARES
Period Ended November 30,
1995...................... 1.00 0.026 -- (0.026) -- -- 1.00 0.82%(b)
Year Ended May 31,
1995...................... 1.00 0.045 -- (0.045) -- -- 1.00 0.82%
1994...................... 1.00 0.027 -- (0.027) -- -- 1.00 0.82%
1993...................... 1.00 0.030 -- (0.030) -- -- 1.00 0.82%
Six Months Ended May 31,
1992(d)................... 1.00 0.020 -- (0.020) -- -- 1.00 0.82%(b)
Year Ended November 30,
1991...................... 1.00 0.058 -- (0.058) -- -- 1.00 0.82%
1990...................... 1.00 0.076 -- (0.076) -- -- 1.00 0.82%
<CAPTION>
NET ASSETS
AT END OF
NET PERIOD
INVESTMENT TOTAL (000'S
INCOME RETURN OMITTED)
---------- ------ ----------
<S> <C> <C> <C>
CASH INVESTMENT FUND
Period Ended November 30,
1995...................... 5.56%(b) 5.68%(b) $1,694,712
Year Ended May 31,
1995...................... 4.87% 4.96% 1,464,304
1994...................... 3.11% 3.16% 1,381,402
1993...................... 3.29% 3.36% 1,944,948
Six Months Ended May 31,
1992(d)................... 4.23%(b) 4.29%(b) 1,292,196
Year Ended November 30,
1991...................... 6.11% 6.31% 1,004,979
1990...................... 7.92% 8.22% 747,744
U.S. GOVERNMENT FUND
Period Ended November 30,
1995...................... 5.36%(b) 5.48%(b) 1,488,872
Year Ended May 31,
1995...................... 4.68% 4.81% 1,159,421
1994...................... 3.02% 3.07% 1,091,141
1993...................... 3.00% 3.06% 903,274
Six Months Ended May 31,
1992(d)................... 3.99%(b) 4.07%(b) 623,685
Year Ended November 30,
1991...................... 5.84% 6.00% 469,487
1990...................... 7.66% 7.94% 500,794
TREASURY FUND
Period Ended November 30,
1995...................... 5.13%(b) 5.24%(b) 720,092
Year Ended May 31,
1995...................... 4.62% 4.65% 661,098
1994...................... 2.81% 2.83% 526,483
1993...................... 2.93% 2.98% 384,751
Six Months Ended May 31,
1992(d)................... 4.01%(b) 4.07%(b) 374,492
Period Ended November 30,
1991(c)................... 5.62%(b) 6.02%(b) 354,200
READY CASH INVESTMENT FUND
INVESTOR SHARES
Period Ended November 30,
1995...................... 5.25%(b) 5.37%(b) 376,368
Year Ended May 31,
1995...................... 4.64% 4.62% 268,603
1994...................... 2.70% 2.74% 164,138
1993...................... 3.04% 3.08% 162,585
Six Months Ended May 31,
1992(d)................... 4.01%(b) 4.05%(b) 176,378
Year Ended November 30,
1991...................... 5.81% 5.98% 183,775
1990...................... 7.56% 7.83% 166,911
</TABLE>
See notes to financial statements.
8
<PAGE>
NORWEST ADVANTAGE FUNDS -- MONEY MARKET FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING DURING THE PERIOD
<TABLE>
<CAPTION>
RATIOS TO
AVERAGE
NET ASSETS
BEGINNING NET REALIZED DIVIDENDS -----------
NET ASSET NET AND UNREALIZED FROM NET DISTRIBUTIONS CAPITAL ENDING NET
VALUE PER INVESTMENT GAIN (LOSS) ON INVESTMENT FROM NET CONTRIBUTION ASSET VALUE
SHARE INCOME INVESTMENTS INCOME REALIZED GAINS FROM ADVISER PER SHARE EXPENSES(A)
--------- ---------- --------------- ---------- -------------- ------------- ----------- -----------
EXCHANGE SHARES
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Period Ended November 30,
1995...................... $1.00 $0.023 $ -- ($ 0.023) $ -- $ -- $1.00 1.58%(b)
Year Ended May 31, 1995... 1.00 0.038 -- (0.038) -- -- 1.00 1.57%
Period Ended May 31,
1994(c)................... 1.00 0.001 -- (0.001) -- -- 1.00 1.53%(b)
INSTITUTIONAL SHARES
Period Ended November 30,
1995...................... 1.00 0.028 -- (0.028) -- -- 1.00 0.48%(b)
Year Ended May 31, 1995... 1.00 0.049 -- (0.049) -- -- 1.00 0.48%
Period Ended May 31,
1994(c)................... 1.00 0.013 -- (0.013) -- -- 1.00 0.43%(b)
MUNICIPAL MONEY MARKET FUND
INVESTOR SHARES
Period Ended November 30,
1995...................... 1.00 0.017 -- (0.017) -- -- 1.00 0.66%(b)
Year Ended May 31,
1995...................... 1.00 0.031 (0.004) (0.031) -- 0.004 1.00 0.65%
1994...................... 1.00 0.021 -- (0.021) -- -- 1.00 0.65%
1993...................... 1.00 0.021 -- (0.021) -- -- 1.00 0.65%
Six Months Ended May 31,
1992(d)................... 1.00 0.014 -- (0.014) -- -- 1.00 0.63%(b)
Year Ended November 30,
1991...................... 1.00 0.042 -- (0.042) -- -- 1.00 0.64%
1990...................... 1.00 0.053 -- (0.053) -- -- 1.00 0.64%
INSTITUTIONAL SHARES
Period Ended November 30,
1995...................... 1.00 0.018 -- (0.018) -- -- 1.00 0.46%(b)
Year Ended May 31, 1995... 1.00 0.033 (0.004) (0.033) -- 0.004 1.00 0.45%
Period Ended May 31,
1994(c)................... 1.00 0.019 -- (0.019) -- -- 1.00 0.45%(b)
<CAPTION>
NET ASSETS
AT END OF
NET PERIOD
INVESTMENT TOTAL (000'S
INCOME RETURN OMITTED)
---------- ------ ----------
EXCHANGE SHARES
<S> <C> <C> <C>
Period Ended November 30,
1995...................... 4.50%(b) 4.58%(b) $ 121
Year Ended May 31, 1995... 3.62% 3.69% 160
Period Ended May 31,
1994(c)................... 2.48%(b) 2.51%(b) 151
INSTITUTIONAL SHARES
Period Ended November 30,
1995...................... 5.59%(b) 5.72%(b) 765,309
Year Ended May 31, 1995... 4.97% 4.98% 506,243
Period Ended May 31,
1994(c)................... 3.12%(b) 3.17%(b) 333,464
MUNICIPAL MONEY MARKET FUND
INVESTOR SHARES
Period Ended November 30,
1995...................... 3.38%(b) 3.42%(b) 56,834
Year Ended May 31,
1995...................... 3.10% 3.13%(e) 47,424
1994...................... 2.03% 2.09% 33,554
1993...................... 2.13% 2.18% 75,521
Six Months Ended May 31,
1992(d)................... 2.81%(b) 2.89%(b) 82,678
Year Ended November 30,
1991...................... 4.10% 4.26% 66,327
1990...................... 5.34% 5.48% 29,801
INSTITUTIONAL SHARES
Period Ended November 30,
1995...................... 3.58%(b) 3.62%(b) 369,312
Year Ended May 31, 1995... 3.37% 3.33%(e) 278,953
Period Ended May 31,
1994(c)................... 2.33%(b) 2.34%(b) 190,356
</TABLE>
(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>
SIX MONTHS
PERIOD ENDED YEAR ENDED MAY 31, ENDED
NOVEMBER 30, --------------------------- MAY 31,
1995(B) 1995 1994 1993 1992(B)(D)
------------ ----- ----- ----- -----------
<S> <C> <C> <C> <C> <C>
Cash Investment Fund........................................ 0.50% 0.50% 0.49% 0.51% 0.56%
U.S. Government Fund........................................ 0.52% 0.52% 0.53% 0.57% 0.61%
Treasury Fund............................................... 0.56% 0.57% 0.58% 0.58% 0.59%
Ready Cash Investment Fund
Investor shares.......................................... 0.90% 0.91% 0.92% 0.94% 0.93%
Exchange shares.......................................... 2.81% 6.32% 1.85%(b) -- --
Institutional shares..................................... 0.72% 0.73% 0.81%(b) -- --
Municipal Money Market Fund
Investor shares.......................................... 0.95% 0.93% 0.99% 0.97% 0.96%
Exchange shares.......................................... 0.77% 0.74% 0.77%(b) -- --
<CAPTION>
YEAR ENDED
NOVEMBER 30,
----------------
1991 1990
----- -----
<S> <C> <C>
Cash Investment Fund........................................ 0.54% 0.57%
U.S. Government Fund........................................ 0.60% 0.61%
Treasury Fund............................................... 0.66%(b) --
Ready Cash Investment Fund
Investor shares.......................................... 0.96% 0.97%
Exchange shares.......................................... -- --
Institutional shares..................................... -- --
Municipal Money Market Fund
Investor shares.......................................... 1.08% 1.16%
Exchange 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.
9
<PAGE>
NORWEST ADVANTAGE FUNDS -- MONEY MARKET FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
CASH INVESTMENT FUND
Agency Notes (3.8%):
$ 17,500,000 Federal Farm Credit Bank, 5.60%, due 7/1/96.......................................... $ 17,507,623
20,000,000 Federal Home Loan Bank, 6.105%, due 5/16/96.......................................... 19,990,328
25,000,000 Federal Home Loan Bank, 6.015%, due 6/3/96........................................... 25,060,551
--------------
Total Agency Notes 62,558,502
--------------
Asset Backed Securities (2.2%):
12,500,000 Money Market Auto Loan Trust 1990-1, 6.015% variable rate, due 4/30/97............... 12,500,000
4,584,680 Small Business Administration Guaranteed Loan Pool 501694, 6.875% variable rate, due
11/25/16............................................................................ 4,648,253
5,910,091 Small Business Administration Guaranteed Loan Pool 502144, 6.75% variable rate, due
12/25/17............................................................................ 5,910,091
5,677,978 Small Business Administration Guaranteed Loan Pool 502171, 6.75% variable rate, due
12/25/17............................................................................ 5,677,978
5,992,806 Small Business Administration Guaranteed Loan Pool 502199, 6.75% variable rate, due
3/25/18............................................................................. 5,992,806
2,220,439 Small Business Administration Guaranteed Loan Pool 502339, 6.625% variable rate, due
1/25/03............................................................................. 2,220,439
--------------
Total Asset Backed Securities 36,949,567
--------------
Bank Notes (10.1%):
25,000,000 American Express Centurion Bank, 5.852% variable rate, due 12/1/95................... 25,000,000
22,000,000 Bank One, Columbus, N.A., 6.00%, due 9/12/96......................................... 22,000,000
10,000,000 Huntington National Bank, 6.55%, due 7/1/96.......................................... 10,051,872
50,000,000 National Australia Bank Ltd, 5.75%, due 10/2/96...................................... 49,947,862
20,000,000 PNC Bank, N.A., Pittsburgh, 5.763% variable rate, due 5/17/96........................ 19,997,258
10,000,000 Shizuoka Bank Ltd., 5.82% variable rate, due 3/6/96.................................. 9,999,214
15,000,000 Shizuoka Bank Ltd., 5.863% variable rate, due 10/25/96............................... 14,998,652
Bank Notes, continued:
$ 15,000,000 The Bank of New York Company, Incorporated, Delaware, 5.875%, due 10/24/96........... $ 15,000,000
--------------
Total Bank Notes 166,994,858
--------------
Banker's Acceptances (0.6%):
10,000,000 Bank of Tokyo Ltd., London Branch, 6.189% yield, due 1/19/96......................... 9,916,972
--------------
Certificates Of Deposit (6.7%):
20,000,000 Dai-Ichi Kangyo Bank Ltd., 6.11%, due 1/16/96........................................ 19,999,418
30,000,000 Mitsubishi Bank Ltd., 5.90%, due 12/27/95............................................ 29,999,787
30,000,000 Mitsubishi Bank Ltd., 5.97%, due 12/28/95............................................ 30,000,000
7,000,000 Mitsubishi Bank Ltd., 6.17%, due 1/19/96............................................. 6,998,427
25,000,000 Sanwa Bank Ltd., 6.03%, due 12/29/95................................................. 25,000,383
--------------
Total Certificates Of Deposit 111,998,015
--------------
Commercial Paper (53.7%):
20,000,000 Anchor Funding Corporation, 5.99% yield, due 2/8/96(a)............................... 19,770,384
10,334,000 Anchor Funding Corporation, 6.03% yield, due 2/8/96(a)............................... 10,216,149
30,000,000 Anchor Funding Corporation, 6.092% yield, due 2/8/96(a).............................. 29,655,000
25,000,000 Astro Capital Corporation, 5.986% yield, due 12/29/95(a)............................. 24,884,888
10,000,000 Creative Capital Corporation, 6.085% yield, due 1/16/96(a)........................... 9,923,078
17,000,000 Creative Capital Corporation, 5.99% yield, due 1/23/96(a)............................ 16,852,336
8,320,000 Creative Capital Corporation, 6.093% yield, due 1/25/96(a)........................... 8,243,734
25,000,000 Creative Capital Corporation, 6.06% yield, due 2/15/96(a)............................ 24,684,917
16,500,000 Daewoo International (America) Corporation, 6.077% yield, due 2/8/96................. 16,310,250
5,000,000 Dean Witter Discover & Company, 6.501% yield, due 12/15/95........................... 4,987,944
23,000,000 Diamond Asset Funding Corporation, 6.054% yield, due 1/11/96(a)...................... 22,842,834
</TABLE>
See notes to financial statements.
10
<PAGE>
NORWEST ADVANTAGE FUNDS -- MONEY MARKET FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
CASH INVESTMENT FUND (continued)
Commercial Paper, continued:
$ 16,856,000 Dynamic Funding Corporation, 5.909% yield, due 12/18/95.............................. $ 16,809,435
10,000,000 Dynamic Funding Corporation, 6.123% yield, due 1/17/96............................... 9,921,014
25,004,000 Dynamic Funding Corporation, 6.093% yield, due 1/24/96............................... 24,778,214
4,500,000 Dynamic Funding Corporation, 6.121% yield, due 2/7/96................................ 4,448,745
10,000,000 Dynamic Funding Corporation, 6.079% yield, due 2/16/96............................... 9,871,881
22,980,000 Frontier Funding Corporation, 6.087% yield, due 2/21/96(a)........................... 22,665,940
11,511,000 Golden Gate Management, Incorporated, Sumitomo Bank Ltd. LOC, 5.908% yield, due
12/12/95............................................................................ 11,490,336
12,000,000 Hillsborough County, Florida, Sanwa Bank Ltd. LOC, 5.869% yield, due 5/29/96......... 11,658,000
2,611,000 Holland Limited Securitization, Incorporated, 6.121% yield, due 12/11/95(a).......... 2,606,576
25,390,000 Holland Limited Securitization, Incorporated, 5.884% yield, due 1/22/96(a)........... 25,180,223
20,000,000 Industrial Funding Corporation, 6.086% yield, due 1/25/96(a)......................... 19,816,667
5,300,000 International Securitization Corporation, 6.129% yield, due 12/19/95(a).............. 5,283,835
3,470,000 International Securitization Corporation, 6.142% yield, due 1/30/96.................. 3,434,895
17,171,000 Iris Partners Ltd., Sumitomo Bank Ltd. LOC, 5.848% yield, due 12/8/95................ 17,151,568
28,440,000 Jet Funding Corporation, 6.041% yield, due 12/29/95.................................. 28,308,386
20,000,000 Jet Funding Corporation, 6.165% yield, due 1/31/96................................... 19,794,295
Commercial Paper, continued:
$ 50,000,000 Merrill Lynch & Company, Incorporated, 5.77% yield, due 12/4/95...................... $ 49,975,958
10,000,000 ORIX America, Incorporated, Sanwa Bank Ltd. LOC, 5.865% yield, due 5/24/96........... 9,722,917
8,068,000 October Corporation, 6.131% yield, due 12/21/95...................................... 8,040,659
11,254,000 Old Line Funding Corporation, 5.967% yield, due 12/4/95(a)........................... 11,248,420
13,458,000 Old Line Funding Corporation, 5.974% yield, due 12/11/95(a).......................... 13,435,757
3,248,000 Premium Funding, Incorporated, 6.122% yield, due 12/12/95(a)......................... 3,241,946
2,061,000 Premium Funding, Incorporated, 6.128% yield, due 12/18/95(a)......................... 2,055,063
25,000,000 Progress Funding Corporation, 6.114% yield, due 1/8/96(a)............................ 24,840,348
11,300,000 Progress Funding Corporation, 6.124% yield, due 1/10/96(a)........................... 11,223,662
18,500,000 Progress Funding Corporation, 6.127% yield, due 2/5/96(a)............................ 18,294,805
21,400,000 Quebec (Province of), Canada, 6.317% yield, due 12/12/95............................. 21,360,309
19,000,000 Ruby Asset Funding Corporation, 5.919% yield, due 12/29/95(a)........................ 18,913,550
20,000,000 Ruby Asset Funding Corporation, 6.229% yield, due 1/12/96(a)......................... 19,856,500
21,000,000 SRD Finance Incorporated, Bank of Tokyo, Ltd. LOC, 6.164% yield, due 1/11/96......... 20,853,630
10,000,000 Sanwa Business Credit Corporation, 5.915% yield, due 1/19/96......................... 9,920,784
20,000,000 Sapphire Funding Corporation, 5.89% yield, due 12/20/95(a)........................... 19,938,672
12,000,000 Sapphire Funding Corporation, 6.102% yield, due 2/2/96(a)............................ 11,874,000
15,000,000 Sierra Funding Corporation, 6.128% yield, due 1/31/96................................ 14,771,291
12,000,000 Stellar Capital Corporation, 5.938% yield, due 1/30/96(a)............................ 11,883,400
</TABLE>
See notes to financial statements.
11
<PAGE>
NORWEST ADVANTAGE FUNDS -- MONEY MARKET FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
CASH INVESTMENT FUND (continued)
Commercial Paper, continued:
$ 7,925,000 Stellar Capital Corporation, 6.142% yield, due 1/31/96(a)............................ $ 7,843,489
22,000,000 Stellar Capital Corporation, 5.856% yield, due 5/15/96(a)............................ 21,421,767
10,000,000 Stellar Capital Corporation, 5.859% yield, due 5/20/96(a)............................ 9,729,251
6,081,000 Strategic Asset Funding Corporation, 6.073% yield, due 3/29/96....................... 5,961,399
4,075,000 Takeda Finance USA, Incorporated, 6.13% yield, due 12/20/95(a)....................... 4,061,881
27,195,000 Thames Asset Global Securitization No. 1, Incorporated, 5.975% yield, due
12/12/95(a)......................................................................... 27,145,558
12,203,000 Thames Asset Global Securitization No. 1, Incorporated, 5.975% yield, due
12/15/95(a)......................................................................... 12,174,764
25,000,000 Tri-Lateral Capital, Incorporated, 5.956% yield, due 12/1/95(a)...................... 25,000,000
11,114,000 Tri-Lateral Capital, Incorporated, 6.194% yield, due 1/22/96(a)...................... 11,016,074
7,465,000 Tri-Lateral Capital, Incorporated, 6.121% yield, due 2/12/96(a)...................... 7,373,722
14,455,000 Tri-Lateral Capital, Incorporated, 6.123% yield, due 2/13/96(a)...................... 14,275,831
9,005,000 Tri-Lateral Capital, Incorporated, 6.123% yield, due 2/14/96(a)...................... 8,891,875
6,579,000 Working Capital Management Company L.P., 6.061% yield, due 1/26/96................... 6,517,596
6,685,000 Working Capital Management Company L.P., 6.123% yield, due 2/21/96................... 6,593,182
--------------
Total Commercial Paper 891,049,584
--------------
Corporate Notes (10.9%):
$ 12,000,000 Bear, Stearns & Company, Incorporated, 5.955% variable rate, due 1/11/96............. $ 12,000,000
15,000,000 CS First Boston, Incorporated, 5.975% variable rate, due 9/16/96..................... 15,000,000
10,000,000 Ciesco L.P., 6.57%, due 1/22/96...................................................... 9,999,302
14,490,000 Dean Witter Discover & Company, 6.088% variable rate, due 12/15/95................... 14,490,940
15,000,000 Franklin Resources, Incorporated, 6.27%, due 3/15/96................................. 15,013,400
22,000,000 General Electric Company, 5.85%, due 8/29/96......................................... 21,983,978
12,000,000 Hanson Overseas, B.V. GTD Senior Notes, 5.50%, due 1/15/96........................... 11,993,892
5,000,000 Merrill Lynch & Company, Incorporated, 4.75%, due 6/24/96............................ 4,968,431
12,500,000 Merrill Lynch & Company, Incorporated, 5.90%, due 10/25/96........................... 12,500,000
5,000,000 New Zealand Government, 8.25%, due 9/25/96........................................... 5,091,255
3,890,000 Phillip Morris Companies, Incorporated, 8.875%, due 7/1/96(a)........................ 3,955,489
5,000,000 Progress Capital Incorporated, 8.70%, due 7/31/96(a)................................. 5,088,151
40,000,000 Sanwa Business Credit Corporation, 5.875% variable rate, due 8/9/96.................. 40,000,000
9,500,000 Xerox Credit Corporation, 17.00%, due 2/9/96......................................... 9,691,514
--------------
Total Corporate Notes 181,776,352
--------------
Municipal Demand Notes (0.4%):
6,300,000 Durham, N.C., Certificates, Series B, 5.85% variable rate, due 7/1/03................ 6,300,000
--------------
Receivable Backed Securities (0.5%):
8,173,711 Caterpillar Financial Asset Trust, Series 1995 A1, 5.85%, due 8/25/96(a)............. 8,173,711
--------------
</TABLE>
See notes to financial statements.
12
<PAGE>
NORWEST ADVANTAGE FUNDS -- MONEY MARKET FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
CASH INVESTMENT FUND (continued)
Repurchase Agreements (2.2%):
$ 37,000,000 BA Securities, Incorporated, 5.92%, due 12/1/95, $37,006,084.44 to be collected at
maturity, (collateralized by various U.S. Treasury Obligations, Federal National
Mortgage Association Notes, and Federal Home Loan Bank Notes with an aggregate
market value of $459,950,000)....................................................... $ 37,000,000
--------------
Time Deposits (8.9%):
51,400,000 First National Bank Chicago, 5.938%, due 12/1/95..................................... 51,400,000
51,396,328 Fuji Bank Ltd., 5.906%, due 12/1/95.................................................. 51,396,328
45,000,000 Hong Kong & Shanghai Bank, 5.781%, due 12/1/95....................................... 45,000,000
--------------
Total Time Deposits 147,796,328
--------------
Total Investments (100.0%) $1,660,513,889
--------------
--------------
U.S. GOVERNMENT FUND
Agency Notes (10.4%):
$ 13,000,000 Federal Home Loan Bank, Series HN-1996, 6.39% variable rate, due 4/4/96.............. $ 13,018,775
25,000,000 Federal National Mortgage Association, 5.662% variable rate, due 1/19/96............. 24,998,797
25,000,000 Federal National Mortgage Association, 5.72% variable rate, due 11/20/96............. 24,983,625
25,000,000 Student Loan Marketing Association, 6.08% variable rate, due 7/1/96.................. 24,995,454
11,750,000 Student Loan Marketing Association, 5.63% variable rate, due 7/19/96................. 11,742,685
22,250,000 Student Loan Marketing Association, 5.855% variable rate, due 11/27/96............... 22,282,573
5,000,000 Student Loan Marketing Association, 5.73% variable rate, due 8/4/97.................. 4,990,178
Agency Notes, continued:
$ 29,000,000 Tennessee Valley Authority, 8.25%, due 12/14/95...................................... $ 28,941,670
--------------
Total Agency Notes 155,953,757
--------------
Discount Notes (62.2%):
25,000,000 Federal Farm Credit Bank, 5.519% yield, due 7/1/96................................... 25,010,891
25,000,000 Federal Home Loan Bank, 5.616% yield, due 12/26/95................................... 24,903,472
50,000,000 Federal Home Loan Bank, 5.644% yield, due 1/8/96..................................... 49,704,973
35,000,000 Federal Home Loan Bank, 5.67% yield, due 1/10/96..................................... 34,782,611
25,000,000 Federal Home Loan Bank, 5.643% yield, due 1/17/96.................................... 24,818,202
40,000,000 Federal Home Loan Bank, 5.654% yield, due 1/22/96.................................... 39,677,022
35,000,000 Federal Home Loan Bank, 5.662% yield, due 1/26/96.................................... 34,695,111
25,000,000 Federal Home Loan Bank, 5.616% yield, due 2/2/96..................................... 24,758,500
25,000,000 Federal Home Loan Bank, 5.624% yield, due 3/1/96..................................... 24,651,167
25,000,000 Federal Home Loan Bank, 5.684% yield, due 4/2/96..................................... 24,533,626
15,000,000 Federal Home Loan Bank, 5.50% yield, due 6/3/96...................................... 15,036,330
2,000,000 Federal Home Loan Bank, 5.511% yield, due 8/8/96..................................... 1,926,236
25,000,000 Federal Home Loan Bank, 5.85% yield, due 9/20/96..................................... 24,995,783
49,500,000 Federal Home Loan Mortgage Corporation, 5.646% yield, due 12/1/95.................... 49,500,000
40,000,000 Federal Home Loan Mortgage Corporation, 5.649% yield, due 12/5/95.................... 39,975,244
19,000,000 Federal Home Loan Mortgage Corporation, 5.582% yield, due 12/8/95.................... 18,979,607
25,000,000 Federal Home Loan Mortgage Corporation, 5.601% yield, due 12/18/95................... 24,934,833
55,000,000 Federal Home Loan Mortgage Corporation, 5.706% yield, due 12/20/95................... 54,835,439
26,000,000 Federal Home Loan Mortgage Corporation, 5.598% yield, due 12/26/95................... 25,900,334
</TABLE>
See notes to financial statements.
13
<PAGE>
NORWEST ADVANTAGE FUNDS -- MONEY MARKET FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
U.S. GOVERNMENT FUND (continued)
Discount Notes, continued:
$ 18,522,000 Federal Home Loan Mortgage Corporation, 5.629% yield, due 2/8/96..................... $ 18,324,973
25,000,000 Federal National Mortgage Association, 5.74% yield, due 12/1/95...................... 25,000,000
59,055,000 Federal National Mortgage Association, 5.596% yield, due 12/12/95.................... 58,955,394
50,000,000 Federal National Mortgage Association, 5.636% yield, due 12/15/95.................... 49,891,111
25,000,000 Federal National Mortgage Association, 5.639% yield, due 12/21/95.................... 24,922,639
50,000,000 Federal National Mortgage Association, 5.652% yield, due 1/12/96..................... 49,675,083
25,000,000 Federal National Mortgage Association, 5.663% yield, due 1/12/96..................... 24,836,667
25,000,000 Federal National Mortgage Association, 5.665% yield, due 1/17/96..................... 24,817,875
23,975,000 Federal National Mortgage Association, 5.646% yield, due 1/19/96..................... 23,793,236
25,000,000 Federal National Mortgage Association, 5.959% yield, due 6/12/96..................... 24,941,773
37,620,000 Tennessee Valley Authority, 5.517% yield, due 11/15/96............................... 38,554,728
--------------
Total Discount Notes 927,332,860
--------------
Repurchase Agreements (27.4%):
202,455,351 BA Securities, Incorporated, 5.92%, due 12/1/95, $202,488,643.71 to be collected at
maturity, (collateralized by various U.S. Treasury Obligations, Federal National
Mortgage Association Notes, & Federal Home Loan Bank Notes with an aggregate market
value of $459,950,000).............................................................. 202,455,351
Repurchase Agreements, continued:
$ 35,000,000 BA Securities, Incorporated, 5.78%, due 12/6/95, $35,005,619.44 to be collected at
maturity, (collateralized by $19,175,000 U.S. Treasury Notes, due 2/15/96,
$18,000,000 U.S. Treasury Notes, due 2/15/96, $13,000,000 U.S. Treasury Notes, due
2/29/96)............................................................................ $ 35,000,000
150,000,000 Bear, Stearns & Company, Incorporated, 5.981% variable rate, available on demand at
$150,000,000 plus accrued interest, (collateralized by $50,000,000 U.S. Treasury
Strip Notes, due 5/15/96, $67,255,000 U.S. Treasury Strip Notes, due 2/15/96,
$39,615,000 U.S. Treasury Strip Notes, due 8/15/96)................................. 150,000,000
21,800,000 Chemical Securities, Incorporated, 5.90%, due 12/1/95, $21,803,572.78 to be collected
at maturity, (collateralized by $23,500,000 U.S. Treasury Bills, due 11/14/96)...... 21,800,000
--------------
Total Repurchase Agreements 409,255,351
--------------
Total Investments (100.0%) $1,492,541,968
--------------
--------------
TREASURY FUND
Treasury Bills (83.7%):
$ 25,000,000 U.S. Treasury, 5.262% yield, due 12/7/95............................................. $ 24,978,500
50,000,000 U.S. Treasury, 5.38% yield, due 12/7/95.............................................. 49,956,250
25,000,000 U.S. Treasury, 5.337% yield, due 12/14/95............................................ 24,952,288
25,000,000 U.S. Treasury, 5.456% yield, due 12/14/95............................................ 24,951,972
50,000,000 U.S. Treasury, 5.552% yield, due 12/21/95............................................ 49,848,750
25,000,000 U.S. Treasury, 5.754% yield, due 12/21/95............................................ 24,921,597
25,000,000 U.S. Treasury, 5.42% yield, due 12/28/95............................................. 24,901,375
50,000,000 U.S. Treasury, 5.37% yield, due 1/4/96............................................... 49,751,610
50,000,000 U.S. Treasury, 5.424% yield, due 1/11/96............................................. 49,698,480
</TABLE>
See notes to financial statements.
14
<PAGE>
NORWEST ADVANTAGE FUNDS -- MONEY MARKET FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
TREASURY FUND (continued)
Treasury Bills, continued:
$ 50,000,000 U.S. Treasury, 5.523% yield, due 1/25/96............................................. $ 49,592,466
25,000,000 U.S. Treasury, 5.471% yield, due 2/8/96.............................................. 24,745,803
7,120,000 U.S. Treasury, 5.563% yield, due 2/8/96.............................................. 7,046,922
35,000,000 U.S. Treasury, 5.573% yield, due 2/8/96.............................................. 34,636,072
27,000,000 U.S. Treasury, 5.492% yield, due 2/15/96............................................. 26,695,050
25,000,000 U.S. Treasury, 5.44% yield, due 2/22/96.............................................. 24,694,514
25,000,000 U.S. Treasury, 5.51% yield, due 2/22/96.............................................. 24,690,768
25,000,000 U.S. Treasury, 5.59% yield, due 3/21/96.............................................. 24,589,917
25,000,000 U.S. Treasury, 5.44% yield, due 5/9/96............................................... 24,417,779
--------------
Total Treasury Bills 565,070,113
--------------
Treasury Notes (16.3%):
50,000,000 U.S. Treasury, 7.875%, due 2/15/96................................................... 50,224,170
60,000,000 U.S. Treasury, 4.625%, due 2/29/96................................................... 59,865,195
--------------
Total Treasury Notes 110,089,365
--------------
Total Investments (100.0%) $675,159,478
--------------
--------------
READY CASH INVESTMENT FUND
Agency Notes (2.7%):
$ 10,000,000 Federal Home Loan Bank, 6.39% variable rate, due 4/4/96.............................. $ 10,014,443
11,000,000 Federal Home Loan Bank, 6.105%, due 5/16/96.......................................... 10,994,680
10,000,000 Federal Home Loan Bank, 6.015%, due 6/3/96........................................... 10,024,220
--------------
31,033,343
--------------
Asset Backed Securities (2.6%):
25,000,000 Medium Term Structured Enhanced Return Trusts, Series 1994-A-05, 5.862% variable
rate, due 1/25/96................................................................... 25,000,000
2,500,000 Money Market Auto Loan Trust 1990-1, 6.015% variable rate, due 4/30/97............... 2,500,000
Asset Backed Securities, continued:
$ 2,240,986 Small Business Administration Guaranteed Loan Pool 502524, 5.00% variable rate, due
2/25/04............................................................................. $ 2,240,986
--------------
29,740,986
--------------
Bank Notes (4.5%):
13,000,000 Bank One, Columbus, N.A., 6.00%, due 9/12/96......................................... 13,000,000
25,000,000 National Australia Bank Ltd., 5.75%, due 10/2/96..................................... 24,973,932
3,170,000 The Bank of New York Company, Incorporated, Delaware, 5.66% variable rate, due
1/12/96............................................................................. 3,169,899
10,000,000 The Bank of New York Company, Incorporated, Delaware, 5.875%, due 10/24/96........... 10,000,000
--------------
51,143,831
--------------
Certificates Of Deposit (6.8%):
13,000,000 Dai-Ichi Kangyo Bank Ltd., 6.11%, due 1/16/96........................................ 12,999,622
5,000,000 Mitsubishi Bank Ltd., 7.70%, due 12/18/95............................................ 5,002,403
20,000,000 Mitsubishi Bank Ltd., 5.90%, due 12/27/95............................................ 19,999,858
20,000,000 Mitsubishi Bank Ltd., 5.97%, due 12/28/95............................................ 20,000,000
5,000,000 Mitsubishi Bank Ltd., 6.17%, due 1/19/96............................................. 4,998,876
15,000,000 Sanwa Bank Ltd., 6.03%, due 12/29/95................................................. 15,000,230
--------------
78,000,989
--------------
Commercial Paper (55.3%):
5,000,000 AES Shady Point, Incorporated, Bank of Tokyo Ltd. LOC, 6.075% yield, due 1/23/96..... 4,955,834
10,000,000 Anchor Funding Corporation, 5.915% yield, due 12/8/95(a)............................. 9,988,819
35,000,000 Anchor Funding Corporation, 6.047% yield, due 1/19/96(a)............................. 34,715,596
1,500,000 Astro Capital Corporation, 6.118% yield, due 12/8/95(a).............................. 1,498,221
20,000,000 Astro Capital Corporation, 5.986% yield, due 12/29/95(a)............................. 19,907,911
10,217,000 Creative Capital Corporation, 6.085% yield, due 1/16/96(a)........................... 10,138,409
</TABLE>
See notes to financial statements.
15
<PAGE>
NORWEST ADVANTAGE FUNDS -- MONEY MARKET FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
READY CASH INVESTMENT FUND (continued)
Commercial Paper, continued:
$ 9,096,000 Creative Capital Corporation, 6.064% yield, due 1/22/96(a)........................... $ 9,017,168
11,435,000 Creative Capital Corporation, 5.99% yield, due 1/23/96(a)............................ 11,335,675
5,000,000 Creative Capital Corporation, 6.093% yield, due 1/25/96(a)........................... 4,954,167
18,352,000 Daewoo International (America) Corporation, 5.842% yield, due 12/8/95................ 18,331,410
12,180,000 Daewoo International (America) Corporation, 6.092% yield, due 2/23/96................ 12,009,480
20,000,000 Diamond Asset Funding Corporation, 6.054% yield, due 1/11/96(a)...................... 19,862,000
10,000,000 Diamond Asset Funding Corporation, 6.06% yield, due 1/31/96(a)....................... 9,898,842
10,000,000 Dynamic Funding Corporation, 6.123% yield, due 1/17/96............................... 9,921,014
20,088,000 Dynamic Funding Corporation, 6.159% yield, due 1/25/96............................... 19,901,712
13,114,000 Dynamic Funding Corporation, 6.115% yield, due 1/31/96............................... 12,980,230
8,900,000 Dynamic Funding Corporation, 6.093% yield, due 2/16/96............................... 8,785,783
25,000,000 Embarcadero Center Venture (One), Dai-Ichi Kangyo Bank Ltd. LOC, 5.875% yield, due
12/11/95............................................................................ 24,959,375
16,926,000 FP Funding Corporation, 6.047% yield, due 1/2/96(a).................................. 16,835,728
8,130,000 FPL Fuels, Incorporated, Sumitomo Bank Ltd. LOC, 5.969% yield, due 12/6/95........... 8,123,282
8,130,000 FPL Fuels, Incorporated, Sumitomo Bank Ltd. LOC, 5.975% yield, due 12/12/95.......... 8,115,219
9,000,000 Hillsborough County, Florida, Sanwa Bank Ltd. LOC, 6.194% yield, due 1/24/96......... 8,917,650
Commercial Paper, continued:
$ 8,506,000 Hillsborough County, Florida, Sanwa Bank Ltd. LOC, 5.869% yield, due 5/29/96......... $ 8,263,580
11,200,000 Holland Limited Securitization, Incorporated, 5.927% yield, due 12/18/95(a).......... 11,168,796
6,364,000 Holland Limited Securitization, Incorporated, 5.989% yield, due 12/26/95(a).......... 6,337,705
13,258,000 Industrial Funding Corporation, 6.102% yield, due 1/25/96(a)......................... 13,136,469
6,000,000 Industrial Funding Corporation, 6.066% yield, due 2/1/96(a).......................... 5,938,000
10,000,000 Jet Funding Corporation, 6.165% yield, due 1/31/96................................... 9,897,147
15,000,000 Kubota Finance (USA), Incorporated, Fuji Bank Ltd. LOC, 5.927% yield, due 12/5/95.... 14,990,167
12,775,000 Madison Funding Corporation, 6.137% yield, due 1/25/96............................... 12,656,530
25,000,000 Merrill Lynch & Company, Incorporated, 5.855% yield, due 12/4/95..................... 24,987,979
1,387,000 October Corporation, 6.113% yield, due 12/4/95....................................... 1,386,295
5,364,000 Old Line Funding Corporation, 6.113% yield, due 12/4/95(a)........................... 5,361,273
20,000,000 Old Line Funding Corporation, 6.003% yield, due 1/9/96(a)............................ 19,871,084
5,000,000 Orix America, Incorporated, Sanwa Bank Ltd. LOC, 6.112% yield, due 1/12/96........... 4,964,709
9,000,000 Orix America, Incorporated, Sanwa Bank Ltd. LOC, 6.197% yield, due 1/30/96........... 8,908,500
6,000,000 Orix America, Incorporated, Sanwa Bank Ltd. LOC, 5.865% yield, due 5/24/96........... 5,833,750
7,000,000 Orix America, Incorporated, Sanwa Bank Ltd. LOC, 5.876% yield, due 5/29/96........... 6,800,501
6,162,000 Premium Funding, Incorporated, 6.115% yield, due 12/5/95(a).......................... 6,157,824
15,000,000 Progress Funding Corporation, 6.127% yield, due 2/5/96(a)............................ 14,833,625
</TABLE>
See notes to financial statements.
16
<PAGE>
NORWEST ADVANTAGE FUNDS -- MONEY MARKET FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
READY CASH INVESTMENT FUND (continued)
Commercial Paper, continued:
$ 15,000,000 Progress Funding Corporation, 6.23% yield, due 3/1/96(a)............................. $ 14,768,709
7,000,000 Progress Funding Corporation, 6.295% yield, due 4/30/96(a)........................... 6,820,897
10,000,000 Quebec (Province of), Canada, 6.319% yield, due 12/14/95............................. 9,978,081
5,000,000 Ruby Asset Funding Corporation, 6.229% yield, due 1/12/96(a)......................... 4,964,125
14,700,000 SRD Finance, Incorporated, Bank of Tokyo Ltd. LOC, 6.164% yield, due 1/11/96......... 14,597,541
13,000,000 Sapphire Funding Corporation, 6.069% yield, due 1/26/96(a)........................... 12,877,812
11,000,000 Sapphire Funding Corporation, 6.102% yield, due 2/2/96(a)............................ 10,884,500
5,000,000 Seiko Corporation of America, Dai-Ichi Kangyo Bank Ltd. LOC, 6.017% yield, due
1/31/96............................................................................. 4,950,014
9,995,000 Stellar Capital Corporation, 5.908% yield, due 1/11/96(a)............................ 9,928,750
7,500,000 Stellar Capital Corporation, 5.938% yield, due 1/30/96(a)............................ 7,427,125
10,712,000 Stellar Capital Corporation, 5.859% yield, due 5/20/96(a)............................ 10,421,973
8,690,000 Strategic Asset Funding Corporation, 6.137% yield, due 1/4/96........................ 8,640,181
18,128,000 Tri-Lateral Capital, Incorporated, 5.99% yield, due 1/11/96(a)....................... 18,006,190
10,000,000 Tri-Lateral Capital, Incorporated, 6.123% yield, due 2/13/96(a)...................... 9,876,050
10,000,000 Tri-Lateral Capital, Incorporated, 6.126% yield, due 2/16/96(a)...................... 9,871,025
6,141,000 Working Capital Management Company L.P., 5.895% yield, due 12/4/95................... 6,138,005
Commercial Paper, continued:
$ 5,000,000 Working Capital Management Company L.P., 6.113% yield, due 2/21/96................... $ 4,931,325
--------------
631,729,762
--------------
Corporate Notes (12.3%):
5,000,000 Abbey National Treasury Services PLC, 7.05%, due 3/1/96.............................. 5,000,000
10,000,000 Bear, Stearns & Company, Incorporated, 5.44% variable rate, due 12/29/95............. 9,997,994
8,000,000 Bear, Stearns & Company, Incorporated, 5.955% variable rate, due 1/11/96............. 8,000,000
10,000,000 CS First Boston, Incorporated, 5.975% variable rate, due 9/16/96..................... 10,000,000
10,000,000 Dean Witter Discover & Company, 6.088% variable rate, due 12/15/95................... 10,000,875
5,000,000 Franklin Resources, Incorporated, 6.27%, due 3/15/96................................. 5,004,465
13,000,000 General Electric Capital Corporation, 5.85%, due 8/29/96............................. 12,987,260
12,205,000 Grand Metropolitan, 8.125%, due 8/15/96.............................................. 12,395,128
5,500,000 Hanson Overseas, B.V. GTD Senior Notes, 5.50%, due 1/15/96........................... 5,497,200
5,000,000 Merrill Lynch & Company, Incorporated, 5.85%, due 9/3/96............................. 4,999,449
12,500,000 Merrill Lynch & Company, Incorporated, 5.90%, due 10/25/96........................... 12,500,000
10,000,000 Sanwa Business Credit Corporation, 6.05% variable rate, due 12/1/95.................. 10,000,000
10,000,000 Sanwa Business Credit Corporation, 5.875% variable rate, due 8/9/96.................. 10,000,000
7,000,000 Sanwa Business Credit Corporation, 5.862% variable rate, due 9/19/96................. 6,995,971
17,000,000 Shizuoka Bank Ltd., 5.835% variable rate, due 8/26/96................................ 16,992,409
--------------
140,370,751
--------------
</TABLE>
See notes to financial statements.
17
<PAGE>
NORWEST ADVANTAGE FUNDS -- MONEY MARKET FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
READY CASH INVESTMENT FUND (continued)
Repurchase Agreements (3.3%):
$ 38,000,000 BA Securities, Incorporated, 5.92%, due 12/1/95, $38,006,248.89 to be collected at
maturity, (collateralized by various U.S. Treasury Obligations, Federal National
Mortgage Association Notes, & Federal Home Loan Bank Notes with an aggregate market
value of $459,950,000).............................................................. $ 38,000,000
--------------
Time Deposits (12.5%):
43,600,000 First National Bank of Chicago, 5.937%, due 12/1/95.................................. 43,600,000
43,423,738 Fuji Bank Ltd., 5.906%, due 12/1/95.................................................. 43,423,738
29,000,000 Hong Kong & Shanghai Bank, 5.781%, due 12/1/95....................................... 29,000,000
27,200,000 Suntrust Banks, Incorporated, 5.937%, due 12/1/95.................................... 27,200,000
--------------
143,223,738
--------------
Total Investments (100.0%) $1,143,243,400
--------------
--------------
MUNICIPAL MONEY MARKET FUND
Municipal Bonds & Notes (96.8%):
Arizona (2.5%):
$ 4,400,000 Chandler, AZ, Industrial Development Authority, Industrial Development Revenue Bonds,
Parsons Municipal Services, Incorporated, National Westminster Bank, USA, LOC, 3.90%
variable rate, due 12/15/09......................................................... $ 4,400,000
6,000,000 Maricopa County, AZ, General Obligation Tax Anticipation Notes, Unified School
District No. 80, Series A, 4.45% variable rate, due 7/31/96......................... 6,017,300
--------------
10,417,300
--------------
California (4.5%):
$ 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, 3.80% variable
rate, due 1/1/25.................................................................... 3,200,000
8,000,000 Orange County, CA, Tax & Revenue Anticipation Notes, Series B, Trust Company Bank
LOC, 4.082% variable rate, due 6/30/96.............................................. 7,560,000
LOC Agreement with Trust Company Bank................................................ 440,000
--------------
8,000,000
5,290,000 Pomona, CA, Redevelopment Agency, Multi-Family Housing Revenue Bonds, Mercury Savings
& Loan LOC, 4.25% variable rate, due 12/1/07........................................ 5,290,000
--------------
18,990,000
--------------
Colorado (3.7%):
1,930,000 Arapahoe County, CO, General Obligation Bonds, Parkview Metro District, 3.85%
variable rate, due 12/1/12.......................................................... 1,930,000
2,000,000 Colorado Health Facilities Authority Revenue Bonds, Rocky Mountain, 3.75% variable
rate, due 9/1/15.................................................................... 2,000,000
1,920,000 Colorado Health Facilities Authority Revenue Bonds, Valley View Hospital Association
Project, Fuji Bank Ltd. LOC, 3.95% variable rate, due 10/1/12....................... 1,920,000
8,240,000 Lakewood, CO, Multi-Family Housing Revenue Bonds, St. Moritz & Diamondhead Project,
Dai-Ichi Kango Bank Ltd. LOC, 4.00% variable rate, due 10/1/07...................... 8,240,000
1,400,000 Moffat County, CO, Pollution Control Revenue Refunding Bonds, 3.65% variable rate,
due 7/1/10.......................................................................... 1,400,000
--------------
15,490,000
--------------
</TABLE>
See notes to financial statements.
18
<PAGE>
NORWEST ADVANTAGE FUNDS -- MONEY MARKET FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
MUNICIPAL MONEY MARKET FUND (continued)
Florida (9.3%):
$ 2,000,000 Dade County, FL, Aviation Revenue, Variable Rate Demand Bonds, Series A, Fuji Bank
Ltd. LOC, 4.00% variable rate, due 10/1/09.......................................... $ 2,000,000
5,170,000 Dade County, FL, Housing Finance Authority, Multi-Family Mortgage Revenue Bonds,
Cutler Club Apartment Project, Series J, guaranteed by John Hancock , 3.85% variable
rate, due 2/1/05.................................................................... 5,170,000
3,700,000 Dade County, FL, Multi-Family Housing Revenue Bonds, Mayan Tower & Villa, Series M,
guaranteed by John Hancock Mutual Life, 3.85% variable rate, due 12/1/29............ 3,700,000
4,600,000 Dade County, FL, Multi-Family Housing Revenue Bonds, Bermuda Villas, Series K,
guaranteed by John Hancock Insurance, 3.85% variable rate, due 2/1/05............... 4,600,000
2,600,000 Florida Housing Finance Agency, Multi-Family Housing Revenue Bonds, 1984 Project,
Series A, Wells Fargo Bank LOC, 3.95% variable rate, due 4/1/07..................... 2,600,000
1,200,000 Florida Housing Finance Agency, Multi-Family Housing Revenue Bonds, 1984 Project,
Series A, Wells Fargo Bank LOC, 3.95% variable rate, due 4/1/07..................... 1,200,000
1,150,000 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.... 1,150,000
Florida, continued:
$ 1,800,000 Florida Housing Finance Agency, Multi-Family Housing Revenue Bonds, Carlton Project,
Sumitomo Bank LOC, 4.00% variable rate, due 12/1/08................................. $ 1,800,000
8,120,000 Florida Housing Finance Agency, Multi-Family Housing Revenue Bonds, Country Club
Project, Bankers Trust LOC, 4.35% variable rate, due 12/1/07........................ 8,120,000
3,300,000 Florida Housing Finance Agency, Multi-Family Housing Revenue Bonds, Windwood Oaks
Project, Wells Fargo Bank LOC, 3.95% variable rate, due 5/1/08...................... 3,300,000
1,600,000 Hillsborough County, FL, Industrial Development Authority, Port Facilities Revenue
Bonds, Seaboard System Railroad, Incorporated Project, National Bank Detroit LOC,
3.90% variable rate, due 10/15/99................................................... 1,600,000
2,400,000 Indian River County, FL, District Hospital Revenue Bonds, Kredietbank LOC, 3.70%
variable rate, due 10/1/15, crossover refunded 5/2/10 at 100........................ 2,400,000
1,050,000 Orange County, FL, Housing Finance Authority, Multi-Family Guaranteed Mortgage
Revenue Refunding Bonds, Sundown Association II, Series B, Fleet Bank LOC, 3.85%
variable rate, due 6/1/04........................................................... 1,050,000
--------------
38,690,000
--------------
Georgia (1.9%):
8,000,000 Municipal Electric Authority of Georgia, Adjustable Rate Subordinated General
Resolution Bonds, Series 1985 C, 4.90% variable rate, due 3/1/96.................... 8,000,000
--------------
</TABLE>
See notes to financial statements.
19
<PAGE>
NORWEST ADVANTAGE FUNDS -- MONEY MARKET FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
MUNICIPAL MONEY MARKET FUND (continued)
Hawaii (1.6%):
$ 4,400,000 Hawaii State Department of Budget & Finance, Special Purpose Mortgage Revenue Bonds,
G.N. Wilcox Memorial Hospital Project, Fuji Bank Ltd. NY, LOC, 4.40% variable rate,
due 7/1/18.......................................................................... $ 4,400,000
2,290,000 Hawaii State Department of Budget & Finance, Special Purpose Mortgage Revenue Bonds,
Kuakini Medical Center Project, Bank of Hawaii LOC, 3.85% variable rate, due
7/1/04.............................................................................. 2,290,000
--------------
6,690,000
--------------
Illinois (18.7%):
1,000,000 Cook County, IL, General Obligation Refunding Bonds, Series B, 3.80%, due 11/15/96... 1,000,456
2,800,000 Cook County, IL, General Obligation Tender Notes, Public Safety Project, Series A,
Northern Trust and First Chicago LOC's, 3.80% variable rate, due 3/1/00............. 2,800,000
7,610,000 Illinois Development Finance Authority Multi-Family Housing Revenue Bonds, Garden
Glen Apartments, guaranteed by CNA Insurance, 4.20% variable rate, due 12/1/13...... 7,610,000
940,000 Illinois Development Finance Authority Development Revenue Bonds, North Wacker Drive,
4.10% variable rate, due 12/1/15.................................................... 940,000
2,500,000 Illinois Development Finance Authority Revenue Bonds, Supervalu Incorporated Project,
Wachovia Corporation LOC, 4.10% variable rate, due 2/1/01........................... 2,500,000
2,070,000 Illinois Development Finance Authority Revenue Bonds, Webster-Wayne Shopping Project,
4.00% variable rate, due 12/1/15.................................................... 2,070,000
Illinois, continued:
$ 4,500,000 Illinois Educational Facilities Authority Revenue Bonds, Art Institute of Chicago,
Sumitomo Bank Ltd. LOC, 4.00% variable rate, due 3/1/27............................. $ 4,500,000
4,000,000 Illinois Educational Facilities Authority Revenue Bonds, Cultural Pool, First
National Bank of Chicago LOC, 3.85% variable rate, due 12/1/25...................... 4,000,000
5,000,000 Illinois Educational Facilities Authority Revenue Bonds, Depaul University, Series
CP-1, Sanwa Bank LOC, 4.05% variable rate, due 4/1/26............................... 5,000,000
7,300,000 Illinois Health Facilities Authority Revenue Bonds, Condell Memorial Hospital, Bank
of Tokyo LOC, 4.30% variable rate, 11/1/05.......................................... 7,300,000
4,110,000 Illinois Health Facilities Authority Revenue Refunding Bonds, Elmhurst Memorial
Hospital, Series B, 4.10% variable rate, due 1/1/20................................. 4,110,000
11,600,000 Illinois Health Facilities Authority Revenue Bonds, Franciscan Sisters Health
Project, 4.10% variable rate, due 1/1/18............................................ 11,600,000
1,000,000 Illinois Health Facilities Authority Revenue Bonds, Healthcare System Project A,
Industrial Bank of Japan Ltd. LOC, 3.65% variable rate, due 06/1/06................. 1,000,000
1,800,000 Illinois Health Facilities Authority Revenue Bonds, Healthcorp Affiliates, Central
DuPage Hospital Association Project, Industrial Bank of Japan Ltd. LOC, 4.10%
variable rate, due 11/1/20.......................................................... 1,800,000
3,360,000 Illinois Health Facilities Authority Revenue Bonds, Ingalls Memorial Hospital, Series
1985 C, Fuji Bank Ltd. LOC, 3.90% variable rate due 1/1/16.......................... 3,360,000
</TABLE>
See notes to financial statements.
20
<PAGE>
NORWEST ADVANTAGE FUNDS -- MONEY MARKET FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
MUNICIPAL MONEY MARKET FUND (continued)
Illinois, continued:
$ 3,145,000 Illinois Housing Development Authority, Multi-Family Housing Revenue Bonds,
guaranteed by Metropolitan Life, 3.90% variable rate, due 1/1/08.................... $ 3,145,000
6,800,000 Lombard, IL, Industrial Development Revenue Refunding Bonds, 2500 Highland Avenue,
Mid-America Federal Savings & Loan LOC, 4.15% variable rate, due 12/1/06............ 6,800,000
3,000,000 Oak Forest, IL, Homewood Pool, First National Bank of Chicago, 3.80% variable rate,
due 7/1/24.......................................................................... 3,000,000
1,000,000 Orland Hills, IL, Multi-Family Housing Revenue Bonds, LaSalle Bank LOC, 3.85%
variable rate, due 12/1/04.......................................................... 1,000,000
4,770,000 Palatine, IL, Multi-Family Housing Revenue Bonds, Hamilton Place Project, Concordia &
Elmhurst Federal Savings & Loan LOC, 4.10% variable rate, due 12/1/08............... 4,770,000
--------------
78,305,456
--------------
Indiana (1.9%):
6,000,000 Indiana Bond Bank Notes, Advance Funding Program, Series A-3, 4.061% variable rate,
due 1/10/96......................................................................... 6,000,000
1,700,000 South Bend, IN, College Football, Industrial Development Revenue Bonds, FUJI LOC,
4.05% variable rate, due 2/1/19..................................................... 1,700,000
--------------
7,700,000
--------------
Iowa (4.3%):
2,000,000 Algona, IA, Industrial Development Revenue Bonds, George A. Hormel & Company Project,
Sumitomo Bank LOC, 4.15% variable rate, due 5/1/05.................................. 2,000,000
Iowa, continued:
$ 5,000,000 Louisa County, IA, Pollution Control Revenue Bonds, Iowa-Illinois Gas & Electric
Company Project, Series A, Rabobank Nederland LOC, 3.65% variable rate, due
9/1/16.............................................................................. $ 5,000,000
4,000,000 Urbandale, IA, Industrial Development Revenue Bonds, Aurora Business Park Association
Project, guaranteed by Principal Mutual Life Insurance, 4.10% 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, 3.90% variable rate, due 12/1/14..... 6,000,000
1,100,000 Urbandale, IA, Industrial Development Revenue Bonds, Meredith Drive Association
Project, guaranteed by Principal Mutual Life Insurance, 4.10% variable rate, due
11/1/15............................................................................. 1,100,000
--------------
18,100,000
--------------
Kentucky (1.9%):
1,000,000 Kentucky Association of Counties, Reinsurance Trust Revenue Bonds, Hong Kong Shanghai
& Marine Midland Bank LOC's, 3.90% variable rate, due 9/1/15........................ 1,000,000
5,600,000 Kentucky Economic Development Revenue Bonds, Sisters of Charity, Sanwa Bank SBPA,
4.10% variable rate, due 11/1/20.................................................... 5,600,000
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
--------------
8,080,000
--------------
</TABLE>
See notes to financial statements.
21
<PAGE>
NORWEST ADVANTAGE FUNDS -- MONEY MARKET FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
MUNICIPAL MONEY MARKET FUND (continued)
Louisiana (2.5%):
$ 3,040,000 Bossier Parish, LA, Industrial Development Board, Incorporated, Economic Development
Revenue Bonds, H.J. Wilson, Incorporated Project, Canadian Imperial Bank LOC, 4.40%
variable rate, due 12/1/07, mandatory put 12/1/95 at 100............................ $ 3,040,000
3,200,000 Caddo Parish, LA, Industrial Development Board, Pollution Control Revenue Bonds,
Pennzoil Company Project, Mellon Bank LOC, 4.30% variable rate, due 12/1/12......... 3,200,000
1,200,000 Louisiana Public Facilities Authority, Hospital Equipment Revenue Refunding Bonds,
Series A, Sumitomo Bank LOC, 4.00% variable rate, due 12/1/05....................... 1,200,000
3,000,000 Louisiana Public Facilities Authority, Pollution Control Revenue Bonds, Allied
Signal, Incorporated Project, guaranteed by Allied Sign, Incorporated, 3.85%
variable rate, due 8/1/17........................................................... 3,000,000
--------------
10,440,000
--------------
Maine (1.0%):
4,000,000 State of Maine General Obligation Bonds, 4.30%, due 09/1/96.......................... 4,018,862
--------------
Maryland (2.6%):
2,000,000 Baltimore County, MD, Tax-Exempt Commercial Paper, 3.85%, due 1/9/96................. 2,000,000
2,000,000 Baltimore County, MD, Tax-Exempt Commercial Paper, Westdeutsche Landesbank
Girozentrale LOC, 3.80%, due 1/4/96................................................. 2,000,000
2,845,000 Maryland State Community Development Administration, Single-Family Housing Revenue
Bonds, 3.90% variable rate, due 4/1/96.............................................. 2,845,000
Maryland, continued:
$ 4,200,000 Montgomery County, MD, Housing Opportunities Commission, Multi-Family Housing Revenue
Refunding Bonds, Issue I, guaranteed by Commonwealth Life, 4.00% variable rate, due
11/1/20............................................................................. $ 4,200,000
--------------
11,045,000
--------------
Massachusetts (1.2%):
5,000,000 Massachusetts State General Obligation, Series A, 4.25% variable rate, due 6/12/96... 5,009,345
--------------
Minnesota (6.9%):
4,700,000 Blaine, MN, Industrial Development Revenue Bonds, Supervalu Incorporated Project,
Wachovia Corporation LOC, 4.10% variable rate, due 11/1/13.......................... 4,700,000
3,000,000 Bloomington, MN, Port Authority General Obligation Revenue Bonds, 3.95% variable
rate, due 02/1/13................................................................... 3,000,000
4,300,000 Bloomington, MN, Multi-Family Housing Revenue Bonds, Hampshire Apartments Project,
Phoenix Mutual Life insured, 3.82% variable rate, due 12/1/05....................... 4,300,000
2,350,000 Cottage Grove, MN, Industrial Development Revenue Bonds, SuperValu Incorporated
Project, 4.10% variable rate, due 10/1/05........................................... 2,350,000
2,900,000 Maple Grove, MN, Multi-Family Housing Revenue Bonds, Eagle Ridge Apartments, Sumitomo
Bank LOC, Series A, 4.10% variable rate, due 6/1/26................................. 2,900,000
3,370,000 Mendota Heights, MN, Multi-Family Housing Revenue Refunding Bonds, Lexington Heights
Apartment Project, Series 1991 A, Sumitomo Bank Ltd., LOC, 4.10% variable rate, due
11/1/25............................................................................. 3,370,000
</TABLE>
See notes to financial statements.
22
<PAGE>
NORWEST ADVANTAGE FUNDS -- MONEY MARKET FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
MUNICIPAL MONEY MARKET FUND (continued)
Minnesota, continued:
$ 1,510,000 Richfield, MN, Independent School District, General Obligation School District Trust
Certificates, FGIC insured, 4.00% variable rate, due 2/1/12......................... $ 1,510,000
1,000,000 Richfield, MN, Independent School District, General Obligation School District Trust
Certificates, FGIC insured, 4.00% variable rate, due 2/1/15......................... 1,000,000
1,225,000 Richfield, MN, Independent School District, General Obligation School District Trust
Certificates, Insured by FGIC, 4.00% variable rate, due 2/1/05...................... 1,225,000
4,600,000 St. Louis Park, MN, Industrial Development Revenue Bonds, Unicare Homes, Incorporated
Project, Banque Paribas LOC, 3.85% variable rate, due 8/1/14........................ 4,600,000
--------------
28,955,000
--------------
Missouri (4.1%):
2,755,000 Dunklin County, MO, Industrial Development Authority Revenue Refunding Bonds,
National HealthCorp Project, Bank of Tokyo Ltd. LOC, 4.00% variable rate, due
12/1/10............................................................................. 2,755,000
3,700,000 Kansas City, MO, Industrial Development Authority, Multi-Family Housing Revenue
Bonds, Coach House II Project, guaranteed by Principal Financial Group, 4.10%
variable rate, due 12/1/15.......................................................... 3,700,000
2,200,000 Kansas City, MO, Industrial Development Authority, Multi-Family Housing Revenue
Bonds, JC Nichols Company Project, guaranteed by Principal Financial Group, 4.10%
variable rate, due 5/1/15........................................................... 2,200,000
Missouri, 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............................................................................. $ 5,018,856
3,400,000 St. Louis, MO, Industrial Development Authority, Multi-Family Housing Revenue Bonds,
Cedar Run Apartments Project, 3.85% variable rate, due 2/1/07....................... 3,400,000
--------------
17,073,856
--------------
Nevada (1.2%):
5,000,000 Clark County, NV, Industrial Development Revenue Bonds, Nevada Power Company, Series
C, Barclays LOC, 3.65% variable rate, due 10/1/30................................... 5,000,000
--------------
New York (5.1%):
4,000,000 New York State Medical Care Facilities, Health Care Revenue Bonds, Series 72,
guaranteed by Merrill Lynch, 3.80% variable rate, due 2/15/29....................... 4,000,000
3,950,000 New York, NY, General Obligation Bonds, Series B, FGIC Insured, 4.00% variable rate,
due 10/1/22......................................................................... 3,950,000
13,300,000 New York, NY, Index Note Trust Receipts, Chemical Bank LOC, 4.10% variable rate, due
6/28/96............................................................................. 13,300,000
--------------
21,250,000
--------------
Ohio (3.0%):
5,200,000 Hamilton County, OH, Industrial Development Revenue Bonds, Community Urban
Redevelopment Project, National Westminster LOC, 3.90% variable rate, due
10/15/12............................................................................ 5,200,000
2,200,000 Ohio State Air Quality, Pollution Control Revenue Bonds, Ohio Edison Project, Series
A, 3.45% variable rate, due 2/1/96.................................................. 2,197,755
</TABLE>
See notes to financial statements.
23
<PAGE>
NORWEST ADVANTAGE FUNDS -- MONEY MARKET FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
MUNICIPAL MONEY MARKET FUND (continued)
Ohio, continued:
$ 5,000,000 Ohio State, Industrial Development Revenue Bonds, U.S. Steel Corporation, Sanwa LOC,
3.85% variable rate, due 5/1/11..................................................... $ 5,000,000
--------------
12,397,755
--------------
Oklahoma (1.3%):
5,500,000 Oklahoma State Water Reserve Board Loan Program, Series 1995, 3.80% variable rate,
due 9/1/24, optional put 3/1/96..................................................... 5,500,000
--------------
Oregon (0.8%):
1,495,000 Metro Oregon Open Spaces Program, General Obligation Bond, Series C, 6.75%, due
9/1/96.............................................................................. 1,526,658
1,845,000 Portland, OR, Multi-Family Housing Revenue Bonds, University Park Apartments Project,
Chase Manhattan LOC, 3.80% variable rate, due 10/1/11............................... 1,845,000
--------------
3,371,658
--------------
Pennsylvania (2.1%):
1,000,000 Berks County, PA, Industrial Development Revenue Bonds, guaranteed by CNA Insurance,
3.90% 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, 4.30% 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, 4.30% variable rate, due
11/15/17............................................................................ 4,890,000
Pennsylvania, continued:
$ 2,000,000 Delaware Cnty, PA, Industrial Development Revenue Bonds, Series G, General Electric
LOC, 4.25% variable rate, due 12/1/13, mandatory put 12/1/96........................ $ 2,010,691
--------------
9,000,691
--------------
Rhode Island (3.0%):
5,000,000 Cranston, RI, Municipal Bond Anticipation Notes, State Street LOC, 4.15%, due
6/17/96............................................................................. 5,011,986
1,000,000 Providence, Rhode Island, General Obligation Bond, 5.85%, due 9/1/96................. 1,014,218
6,490,000 Rhode Island Housing & Mortgage Finance Corporation, Multi-Family Housing Revenue
Bonds, Series A, AMBAC insured, 5.00% variable rate, due 7/1/96..................... 6,494,120
--------------
12,520,324
--------------
South Carolina (4.3%):
2,495,000 Georgetown County, SC, Jail Facilities Certificates of Participation, Sumitomo Bank
LOC, 4.45% variable rate, due 4/15/96............................................... 2,495,000
5,000,000 South Carolina State Public Service Authority, Refunding Bonds, Utilities Revenue
Bonds, 3.80% variable rate, due 1/1/25.............................................. 5,000,000
8,500,000 York County, SC, Pollution Control Revenue Bonds, North Carolina Electric Project,
CFC insured, 3.75%, due 3/15/96..................................................... 8,500,000
2,000,000 York County, SC, Pollution Control Revenue Bonds, Saluda River Electric Coop, Pooled
Series 84E-2, Cooperative Finance Corporation, LOC, 3.80%, due 02/15/96............. 2,000,000
--------------
17,995,000
--------------
</TABLE>
See notes to financial statements.
24
<PAGE>
NORWEST ADVANTAGE FUNDS -- MONEY MARKET FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
MUNICIPAL MONEY MARKET FUND (continued)
Texas (3.3%):
$ 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, 3.90% variable rate, due 6/1/05.................................. $ 4,950,000
4,000,000 Harris County, TX, Health Care Facilities, 3.90% variable rate, due 12/1/25,
mandatory tender 12/1/98............................................................ 4,000,000
5,000,000 State of Texas, Tax & Revenue Anticipation Notes, 4.70 variable rate, due 8/30/96.... 5,025,124
--------------
13,975,124
--------------
Virginia (0.2%):
700,000 Louisa, VA, Tax-Exempt Commercial Paper, guaranteed by Virginia Electric Power
Company, 3.90% variable rate, due 12/14/95.......................................... 700,000
--------------
Washington (0.3%):
1,400,000 Washington State Housing Finance Commission, Multi-Family Mortgage Revenue Bonds,
Pacific First Federal, Series B, Federal Home Loan Bank of Seattle LOC, 3.75%
variable rate, due 10/1/20.......................................................... 1,400,000
--------------
Washington, D.C. (1.7%):
2,100,000 District of Columbia, Educational Facilities Revenue Bonds, Georgetown University,
Series D, Sanwa Bank LOC, 3.85% variable rate, due 4/1/17........................... 2,100,000
1,000,000 District of Columbia, General Obligation Refunding Bonds, DCAPMAC-ITC LOC, 4.30%, due
12/1/96............................................................................. 1,003,857
Washington, D.C., continued:
$ 4,000,000 District of Columbia, Supplemental Student Loan Revenue Bonds, CONSERN Loan Program,
Mitsubishi Bank LOC, 4.10% variable rate, due 7/1/01, optional put 7/1/96 at 100.... $ 4,000,000
--------------
7,103,857
--------------
Wisconsin (1.7%):
4,000,000 Milwaukee, WI, General Obligation Bonds, School Districts, Series B, 4.50% variable
rate, due 8/22/96................................................................... 4,017,699
1,115,000 Milwaukee, WI, Pollution Control Revenue Bonds, guaranteed by Johnson Controls
Incorporated, 3.90% variable rate, due 12/1/97...................................... 1,115,000
1,990,000 Waukesha, WI, Housing Authority Revenue Bonds, Caroline Apartments Project, Community
Savings & Loan LOC, 3.95% variable rate, due 5/1/16................................. 1,990,000
--------------
7,122,699
--------------
Wyoming (0.2%):
1,000,000 Green River, WY, Pollution Control Revenue Bonds, Allied Corporation Project,
guaranteed by Allied Signal Corporation, 4.80% variable rate, due 12/1/12........... 1,000,000
--------------
Total Municipal Bonds & Notes 405,341,927
--------------
Short-Term Holdings (3.2%):
1,203,603 Federated Tax Free Obli-
gations Money Market Fund........................................................... 1,203,603
5,140,000 Puttable Floating Option, Tax-Exempt Receipts, Credit Suisse LOC, 4.10% variable
rate, due 10/20/20.................................................................. 5,140,000
7,145,000 Puttable Floating Option, Tax-Exempt Receipts, Series PPS, 4.00% variable rate, due
8/15/24............................................................................. 7,145,000
--------------
Total Short-Term Holdings 13,488,603
--------------
Total Investments (100.0%) $418,830,530
--------------
--------------
</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.
See notes to financial statements.
25
<PAGE>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (NOVEMBER 30, 1995)
<TABLE>
<CAPTION>
ADJUSTABLE
U.S. GOVERNMENT GOVERNMENT TOTAL
RESERVE INCOME INCOME RETURN BOND
FUND FUND FUND FUND
--------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value(a).............................. $39,279,496 $199,610,184 $148,324,914 $119,501,692
Cash.................................................. -- 4,717,925 -- 184,732
Collateral for securities loaned(b)................... -- 31,282,500 27,396,160 36,817,216
Interest, dividends and other receivables............. 386,417 2,805,724 1,778,418 1,652,003
Receivable for securities sold........................ -- -- 11,283,598 1,020,003
Receivable for shares issued.......................... -- 16,688 -- 15,000
Receivable for principal paydowns..................... 227,536 -- -- --
Organization costs, net of amortization............... -- -- -- 20,162
--------------- ------------ ------------ ------------
Total assets........................................... 39,893,449 238,433,021 188,783,090 156,936,626
--------------- ------------ ------------ ------------
LIABILITIES:
Payable for securities purchased...................... 42 20,889,640 9,880,942 1,031,211
Payable for securities loaned(b)...................... -- 31,282,500 27,396,160 36,817,216
Payable for shares redeemed........................... -- 41,033 812 --
Investment advisory, transfer agency and custodial
fees payable........................................ 24,796 85,107 77,478 46,281
Management fee payable................................ 2,222 17,339 10,998 19,325
Accrued expenses and other payables................... 20,215 11,921 11,897 10,430
Dividends payable..................................... 210,512 768,885 763,792 647,620
--------------- ------------ ------------ ------------
Total liabilities...................................... 257,787 53,096,425 38,142,079 36,297,901
--------------- ------------ ------------ ------------
NET ASSETS............................................. $39,635,662 $185,336,596 $150,641,011 $120,638,725
--------------- ------------ ------------ ------------
--------------- ------------ ------------ ------------
COMPONENTS OF NET ASSETS:
Capital paid in....................................... $47,086,877 $197,920,783 $155,912,165 $116,871,681
Unrealized appreciation (depreciation)................ (185,229) 3,491,140 2,728,083 4,119,724
Accumulated net realized losses....................... (7,265,986) (16,075,327 ) (7,999,237) (352,680 )
--------------- ------------ ------------ ------------
NET ASSETS............................................. $39,635,662 $185,336,596 $150,641,011 $120,638,725
--------------- ------------ ------------ ------------
--------------- ------------ ------------ ------------
NET ASSETS BY CLASS OF SHARES:
A shares.............................................. $19,247,559 $20,349,784 $ 5,811,347 $ 1,186,727
B shares.............................................. 391,572 11,317,088 3,322,081 1,711,954
I shares.............................................. 19,996,531 153,669,724 141,507,583 117,740,044
--------------- ------------ ------------ ------------
NET ASSETS............................................. $39,635,662 $185,336,596 $150,641,011 $120,638,725
--------------- ------------ ------------ ------------
--------------- ------------ ------------ ------------
SHARES OUTSTANDING:
A shares.............................................. 2,038,862 2,299,138 593,948 120,923
--------------- ------------ ------------ ------------
--------------- ------------ ------------ ------------
B shares.............................................. 41,674 1,279,950 340,069 174,331
--------------- ------------ ------------ ------------
--------------- ------------ ------------ ------------
I shares.............................................. 2,118,796 17,365,300 14,477,938 11,994,529
--------------- ------------ ------------ ------------
--------------- ------------ ------------ ------------
NET ASSET VALUE PER SHARE:
A shares.............................................. $ 9.44 $ 8.85 $ 9.78 $ 9.81
--------------- ------------ ------------ ------------
--------------- ------------ ------------ ------------
B shares.............................................. $ 9.40 $ 8.84 $ 9.77 $ 9.82
--------------- ------------ ------------ ------------
--------------- ------------ ------------ ------------
I shares.............................................. $ 9.44 $ 8.85 $ 9.77 $ 9.82
--------------- ------------ ------------ ------------
--------------- ------------ ------------ ------------
(a) Cost of investments................................ $39,464,725 $196,119,044 $145,596,831 $115,381,968
</TABLE>
(b) See note 5 of notes to financial statements.
See notes to financial statements.
26
<PAGE>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (NOVEMBER 30, 1995)
<TABLE>
<CAPTION>
TAX-FREE COLORADO MINNESOTA
INCOME TAX-FREE TAX-FREE
FUND FUND FUND
------------ ----------- -----------
<S> <C> <C> <C>
ASSETS:
Investments, at value(a)...................................................... $315,608,784 $57,541,325 $31,243,743
Cash.......................................................................... -- -- --
Collateral for securities loaned(b)........................................... -- -- --
Interest, dividends and other receivables..................................... 5,830,611 1,083,453 531,224
Receivable for securities sold................................................ 3,612,748 4,596,482 505,000
Receivable for shares issued.................................................. 9,813 58,407 1,000,000
Receivable for principal paydowns............................................. -- -- --
Organization costs, net of amortization....................................... -- -- --
------------ ----------- -----------
Total assets................................................................... 325,061,956 63,279,667 33,279,967
------------ ----------- -----------
LIABILITIES:
Payable for securities purchased.............................................. 13,171,735 6,040,364 1,838,231
Payable for securities loaned(b).............................................. -- -- --
Payable for shares redeemed................................................... 2,931 52,890 --
Investment advisory, transfer agency and custodial fees payable............... 88,676 5,479 --
Management fee payable........................................................ 30,354 8,580 75
Accrued expenses and other payables........................................... 15,341 9,144 45,795
Dividends payable............................................................. 991,270 243,514 131,801
------------ ----------- -----------
Total liabilities.............................................................. 14,300,307 6,359,971 2,015,902
------------ ----------- -----------
NET ASSETS..................................................................... $310,761,649 $56,919,696 $31,264,065
------------ ----------- -----------
------------ ----------- -----------
COMPONENTS OF NET ASSETS:
Capital paid in............................................................... $309,886,327 $56,157,008 $30,435,392
Unrealized appreciation....................................................... 11,153,330 2,331,269 1,243,027
Accumulated net realized losses............................................... (10,278,008) (1,568,581) (414,354)
------------ ----------- -----------
NET ASSETS..................................................................... $310,761,649 $56,919,696 $31,264,065
------------ ----------- -----------
------------ ----------- -----------
NET ASSETS BY CLASS OF SHARES:
A shares...................................................................... $ 34,163,601 $27,269,224 $22,853,197
B shares...................................................................... 5,101,083 5,681,578 6,800,632
I shares...................................................................... 271,496,965 23,968,894 1,610,236
------------ ----------- -----------
NET ASSETS..................................................................... $310,761,649 $56,919,696 $31,264,065
------------ ----------- -----------
------------ ----------- -----------
SHARES OUTSTANDING:
A shares...................................................................... 3,392,943 2,674,837 2,142,698
------------ ----------- -----------
------------ ----------- -----------
B shares...................................................................... 506,578 556,635 637,750
------------ ----------- -----------
------------ ----------- -----------
I shares...................................................................... 26,948,747 2,350,729 150,950
------------ ----------- -----------
------------ ----------- -----------
NET ASSET VALUE PER SHARE:
A shares...................................................................... $ 10.07 $ 10.19 $ 10.67
------------ ----------- -----------
------------ ----------- -----------
B shares...................................................................... $ 10.07 $ 10.21 $ 10.66
------------ ----------- -----------
------------ ----------- -----------
I shares...................................................................... $ 10.07 $ 10.20 $ 10.67
------------ ----------- -----------
------------ ----------- -----------
(a) Cost of investments........................................................ $304,455,454 $55,210,056 $30,000,716
</TABLE>
(b) See note 5 of notes to financial statements.
See notes to financial statements.
27
<PAGE>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (PERIOD ENDED NOVEMBER 30, 1995)
<TABLE>
<CAPTION>
ADJUSTABLE
U.S. GOVERNMENT GOVERNMENT TOTAL
RESERVE INCOME INCOME RETURN BOND
FUND FUND FUND FUND
--------------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income......................................... $ 1,958,698 $4,607,494 $4,530,566 $4,051,910
--------------- ---------- ---------- -----------
EXPENSES:
Advisory................................................ 148,321 263,899 314,136 273,970
Management.............................................. 59,329 131,949 125,654 109,588
Transfer agent.......................................... 74,161 164,937 157,068 136,985
Custodian............................................... 5,933 12,396 11,924 10,715
Professional Services................................... 1,217 2,453 2,349 2,034
Filing.................................................. 13,578 14,413 12,444 18,331
Accounting.............................................. 31,000 28,000 36,000 24,000
Trustees................................................ 635 1,278 1,217 1,045
Distribution............................................ 1,987 55,635 16,574 6,780
Amortization of organization costs...................... -- -- -- 3,269
Other................................................... 2,564 3,257 3,413 10,635
--------------- ---------- ---------- -----------
Total expenses........................................... 338,725 678,217 680,779 597,352
Expenses reimbursed and fees waived..................... (84,422) (140,263 ) (195,880) (180,142 )
--------------- ---------- ---------- -----------
Net expenses............................................. 254,303 537,954 484,899 417,210
--------------- ---------- ---------- -----------
NET INVESTMENT INCOME.................................... 1,704,395 4,069,540 4,045,667 3,634,700
--------------- ---------- ---------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Realized gain (loss) on investments..................... (138,151) 790,343 2,084,724 (591,853 )
Change in unrealized appreciation....................... 481,959 777,200 90,036 1,710,605
--------------- ---------- ---------- -----------
Net gain on investments.................................. 343,808 1,567,543 2,174,760 1,118,752
--------------- ---------- ---------- -----------
INCREASE IN NET ASSETS FROM OPERATIONS................... $ 2,048,203 $5,637,083 $6,220,427 $4,753,452
--------------- ---------- ---------- -----------
--------------- ---------- ---------- -----------
</TABLE>
See notes to financial statements.
28
<PAGE>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (PERIOD ENDED NOVEMBER 30, 1995)
<TABLE>
<CAPTION>
TAX-FREE COLORADO MINNESOTA
INCOME TAX-FREE TAX-FREE
FUND FUND FUND
---------- ---------- ----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income.................................................................. $4,500,255 $1,550,337 $ 746,149
---------- ---------- ----------
EXPENSES:
Advisory......................................................................... 373,146 140,319 64,199
Management....................................................................... 149,258 56,128 25,680
Transfer agent................................................................... 186,573 70,160 32,100
Custodian........................................................................ 13,478 5,613 2,568
Professional Services............................................................ 2,525 1,174 2,293
Filing........................................................................... 19,174 1,770 1,168
Accounting....................................................................... 24,000 27,000 26,000
Trustees......................................................................... 1,306 561 241
Distribution..................................................................... 21,843 26,492 29,841
Amortization of organization costs............................................... -- -- --
Other............................................................................ 10,360 7,463 3,994
---------- ---------- ----------
Total expenses.................................................................... 801,663 336,680 188,084
Expenses reimbursed and fees waived.............................................. (336,349) (232,367 ) (123,896 )
---------- ---------- ----------
Net expenses...................................................................... 465,314 104,313 64,188
---------- ---------- ----------
NET INVESTMENT INCOME............................................................. 4,034,941 1,446,024 681,961
---------- ---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Realized gain on investments..................................................... 385,057 295,503 109,180
Change in unrealized appreciation (depreciation)................................. 5,051,978 1,369,606 544,639
---------- ---------- ----------
Net gain (loss) on investments.................................................... 5,437,035 1,665,109 653,819
---------- ---------- ----------
INCREASE IN NET ASSETS FROM OPERATIONS............................................ $9,471,976 $3,111,133 $1,335,780
---------- ---------- ----------
---------- ---------- ----------
</TABLE>
See notes to financial statements.
29
<PAGE>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
(YEAR ENDED MAY 31, 1995 AND THE PERIOD ENDED NOVEMBER 30, 1995)
<TABLE>
<CAPTION>
ADJUSTABLE
U.S. GOVERNMENT GOVERNMENT TOTAL
RESERVE INCOME INCOME RETURN BOND
FUND FUND FUND FUND
--------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
NET ASSETS -- May 31, 1994.............................. $ 105,429,541 $151,355,129 $102,446,565 $12,030,416
--------------- ------------ ------------ ------------
OPERATIONS:
Net investment income.................................. 4,702,184 9,598,324 7,847,074 4,294,636
Realized gain (loss) on investments.................... (5,258,816) (16,865,669 ) (9,293,991) 371,411
Change in unrealized appreciation...................... 2,450,212 12,436,464 10,595,038 2,735,355
--------------- ------------ ------------ ------------
1,893,580 5,169,119 9,148,121 7,401,402
--------------- ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income -- A shares...................... (3,211,903) (1,350,486 ) (428,762) (23,376 )
Net investment income -- B shares...................... (20,359) (653,750 ) (173,377) (28,451 )
Net investment income -- I shares...................... (1,469,922) (7,594,090 ) (7,244,935) (4,242,809 )
Realized gain on investments -- A shares............... -- (162,923 ) -- --
Realized gain on investments -- B shares............... -- (94,024 ) -- --
Realized gain on investments -- I shares............... -- (881,368 ) -- --
--------------- ------------ ------------ ------------
(4,702,184) (10,736,641 ) (7,847,074) (4,294,636 )
--------------- ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Sale of shares -- A shares............................. 581,563 4,123,373 1,669,466 469,528
Sale of shares -- B shares............................. 67,603 2,473,014 857,395 725,150
Sale of shares -- I shares............................. 13,184,845 22,434,407 40,750,927 89,397,922
Reinvested dividends -- A shares....................... 2,782,079 1,068,588 354,261 20,425
Reinvested dividends -- B shares....................... 8,957 486,400 130,689 22,759
Reinvested dividends -- I shares....................... 139,688 876,145 373,375 2,572,353
Cost of shares repurchased -- A shares................. (39,149,472) (7,086,770 ) (2,020,650) (54,585 )
Cost of shares repurchased -- B shares................. (33,051) (1,653,843 ) (355,303) (39,734 )
Cost of shares repurchased -- I shares................. (16,626,794) (45,181,586 ) (25,986,787) (10,535,132 )
--------------- ------------ ------------ ------------
(39,044,582) (22,460,272 ) 15,773,373 82,578,686
--------------- ------------ ------------ ------------
NET ASSETS -- May 31, 1995.............................. 63,576,355 123,327,335 119,520,985 97,715,868
--------------- ------------ ------------ ------------
OPERATIONS:
Net investment income.................................. 1,704,395 4,069,540 4,045,667 3,634,700
Realized gain (loss) on investments.................... (138,151) 790,343 2,084,724 (591,852 )
Change in unrealized appreciation...................... 481,959 777,200 90,036 1,710,605
--------------- ------------ ------------ ------------
2,048,203 5,637,083 6,220,427 4,753,453
--------------- ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income -- A shares...................... (1,107,358) (633,063 ) (198,645) (26,957 )
Net investment income -- B shares...................... (9,791) (305,111 ) (94,765) (39,341 )
Net investment income -- I shares...................... (587,246) (3,131,366 ) (3,752,257) (3,568,402 )
Realized gain on investments -- A shares............... -- -- -- --
Realized gain on investments -- B shares............... -- -- -- --
Realized gain on investments -- I shares............... -- -- -- --
--------------- ------------ ------------ ------------
(1,704,395) (4,069,540 ) (4,045,667) (3,634,700 )
--------------- ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Sale of shares -- A shares............................. 219,400 3,475,662 765,754 652,605
Sale of shares -- B shares............................. -- 1,103,795 469,822 792,636
Sale of shares -- I shares............................. 811,159 67,375,053 39,024,743 25,192,944
Reinvested dividends -- A shares....................... 1,023,957 459,595 163,636 19,981
Reinvested dividends -- B shares....................... 4,337 189,001 74,104 33,516
Reinvested dividends -- I shares....................... 11,874 85,148 85,659 2,037,067
Cost of shares repurchased -- A shares................. (23,863,995) (2,111,782 ) (1,434,087) (93,935 )
Cost of shares repurchased -- B shares................. (20,301) (760,953 ) (568,710) (47,430 )
Cost of shares repurchased -- I shares................. (2,470,932) (9,373,801 ) (9,635,655) (6,783,280 )
--------------- ------------ ------------ ------------
(24,284,501) 60,441,718 28,945,266 21,804,104
--------------- ------------ ------------ ------------
NET ASSETS -- November 30, 1995......................... $ 39,635,662 $185,336,596 $150,641,011 $120,638,725
--------------- ------------ ------------ ------------
--------------- ------------ ------------ ------------
</TABLE>
See notes to financial statements.
30
<PAGE>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
(YEAR ENDED MAY 31, 1995 AND THE PERIOD ENDED NOVEMBER 30, 1995)
<TABLE>
<CAPTION>
TAX-FREE COLORADO MINNESOTA
INCOME TAX-FREE TAX-FREE
FUND FUND FUND
------------ ----------- -----------
<S> <C> <C> <C>
NET ASSETS -- May 31, 1994...................................................... $139,184,677 $51,370,168 $13,365,327
------------ ----------- -----------
OPERATIONS:
Net investment income.......................................................... 7,829,056 2,581,650 687,509
Realized loss on investments................................................... (7,290,713) (1,388,271 ) (447,743 )
Change in unrealized appreciation.............................................. 8,986,928 2,551,346 928,665
------------ ----------- -----------
9,525,271 3,744,725 1,168,431
------------ ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income -- A shares.............................................. (1,879,495) (1,427,564 ) (505,288 )
Net investment income -- B shares.............................................. (160,249) (203,657 ) (135,131 )
Net investment income -- I shares.............................................. (5,789,312) (950,429 ) (47,090 )
Realized gain on investments -- A shares....................................... -- -- --
Realized gain on investments -- B shares....................................... -- -- --
Realized gain on investments -- I shares....................................... -- -- --
------------ ----------- -----------
(7,829,056) (2,581,650 ) (687,509 )
------------ ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Sale of shares -- A shares..................................................... 4,116,272 2,283,364 7,975,823
Sale of shares -- B shares..................................................... 1,148,602 732,184 2,574,142
Sale of shares -- I shares..................................................... 34,208,535 17,122,451 1,388,340
Reinvested dividends -- A shares............................................... 1,435,640 1,158,952 394,894
Reinvested dividends -- B shares............................................... 93,294 132,884 101,509
Reinvested dividends -- I shares............................................... 197,801 10,651 15,984
Cost of shares repurchased -- A shares......................................... (9,708,331) (9,483,389 ) (3,131,320 )
Cost of shares repurchased -- B shares......................................... (276,349) (277,123 ) (208,851 )
Cost of shares repurchased -- I shares......................................... (43,126,975) (8,479,204 ) (508,707 )
------------ ----------- -----------
(11,911,511) 3,200,770 8,601,814
------------ ----------- -----------
NET ASSETS -- May 31, 1995...................................................... 128,969,381 55,734,013 22,448,063
------------ ----------- -----------
OPERATIONS:
Net investment income.......................................................... 4,034,941 1,446,024 681,961
Realized gain on investments................................................... 385,057 295,503 109,180
Change in unrealized appreciation (depreciation)............................... 5,051,978 1,369,606 544,639
------------ ----------- -----------
9,471,976 3,111,133 1,335,780
------------ ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income -- A shares.............................................. (877,538) (681,436 ) (504,646 )
Net investment income -- B shares.............................................. (102,367) (123,162 ) (141,386 )
Net investment income -- I shares.............................................. (3,055,036) (641,426 ) (35,929 )
Realized gain on investments -- A shares....................................... -- -- --
Realized gain on investments -- B shares....................................... -- -- --
Realized gain on investments -- I shares....................................... -- -- --
------------ ----------- -----------
(4,034,941) (1,446,024 ) (681,961 )
------------ ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Sale of shares -- Ashares...................................................... 3,940,991 2,558,868 7,340,321
Sale of shares -- B shares..................................................... 1,353,308 596,661 1,785,804
Sale of shares -- I shares..................................................... 179,915,812 2,771,733 (218,952 )
Reinvested dividends -- A shares............................................... 738,550 544,565 385,099
Reinvested dividends -- B shares............................................... 65,150 76,703 110,277
Reinvested dividends -- I shares............................................... 52,769 5,174 6,298
Cost of shares repurchased -- A shares......................................... (2,173,960) (2,613,182 ) (906,311 )
Cost of shares repurchased -- B shares......................................... (171,479) (347,699 ) (329,206 )
Cost of shares repurchased -- I shares......................................... (7,365,908) (4,072,249 ) (11,147 )
------------ ----------- -----------
176,355,233 (479,426 ) 8,162,183
------------ ----------- -----------
NET ASSETS -- November 30, 1995................................................. $310,761,649 $56,919,696 $31,264,065
------------ ----------- -----------
------------ ----------- -----------
</TABLE>
See notes to financial statements.
31
<PAGE>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Norwest Advantage Funds (the 'Trust') is registered as an open-end
management investment company. The classes of the fixed income portfolios of the
Trust (each a 'Fund') commenced operations on the following dates:
<TABLE>
<S> <C>
Adjustable U.S. Government Reserve Fund (A shares)........................................ June 16, 1992
Adjustable U.S. Government Reserve Fund (B shares)........................................ August 6, 1993
Adjustable U.S. Government Reserve Fund (I shares)........................................ August 2, 1993
Government Income Fund (A shares)......................................................... December 1, 1988
Government Income Fund (B shares)......................................................... August 2, 1993
Government Income Fund (I shares)......................................................... August 2, 1993
Income Fund (A shares).................................................................... June 9, 1987
Income Fund (B shares).................................................................... August 5, 1993
Income Fund (I shares).................................................................... August 2, 1993
Total Return Bond Fund (A shares)......................................................... December 31, 1993
Total Return Bond Fund (B shares)......................................................... December 31, 1993
Total Return Bond Fund (I shares)......................................................... December 31, 1993
Tax-Free Income Fund (A shares)........................................................... August 1, 1989
Tax-Free Income Fund (B shares)........................................................... August 6, 1993
Tax-Free Income Fund (I shares)........................................................... August 2, 1993
Colorado Tax-Free Fund (A shares)......................................................... June 1, 1993
Colorado Tax-Free Fund (B shares)......................................................... August 2, 1993
Colorado Tax-Free Fund (I shares)......................................................... August 23, 1993
Minnesota Tax-Free Fund (A shares)........................................................ January 12, 1988
Minnesota Tax-Free Fund (B shares)........................................................ August 6, 1993
Minnesota Tax-Free Fund (I shares)........................................................ August 2, 1993
</TABLE>
A shares are sold with a front-end sales charge. B shares are subject to a
contingent deferred sales charge upon redemption and, after a specified number
of years, automatically convert to A shares. I shares are offered exclusively to
fiduciary and other clients of banks, trust companies and their affiliates. I
shares shareholders incur neither a front-end nor contingent deferred sales
charge.
With the exception of Colorado Tax-Free Fund and Minnesota Tax-Free Fund,
each Fund is diversified. 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.
Investor A shares, Investor B shares and Trust shares were renamed A shares, B
shares and I shares, respectively. The Funds' financial statements are prepared
in accordance with generally accepted accounting principles. The Trust
Instrument authorizes the issuance of an unlimited number of shares of
beneficial interest without par value.
FINANCIAL STATEMENT PERIODS AND CHANGE OF FISCAL YEAR -- For certain Funds
and 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, Government Income Fund and Minnesota Tax-Free Fund
elected to change their fiscal year end to May 31. Prior to May 31, 1992, the
fiscal year end was November 30.
SECURITY VALUATION -- Securities with a maturity of 60 days or less are
valued at amortized cost. Other securities held by the Funds for which market
quotations are readily available are valued using mean of the bid and ask prices
provided by independent pricing services. If no mean price is available, the
last bid price is used. In the absence of readily available market quotations,
securities are valued at fair value determined by the Board of Trustees.
Unrealized appreciation and depreciation, based on identified tax cost, as of
November 30, 1995 were as follows:
<TABLE>
<CAPTION>
UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION
------------ ------------
<S> <C> <C>
Adjustable U.S. Government Reserve Fund.............................................. $ 124,215 $309,444
Government Income Fund............................................................... 3,438,944 64,288
Income Fund.......................................................................... 2,989,724 261,641
Total Return Bond Fund............................................................... 4,289,046 156,830
Tax-Free Income Fund................................................................. 11,012,977 113,752
Colorado Tax-Free Fund............................................................... 2,349,048 17,779
Minnesota Tax-Free Fund.............................................................. 1,243,027 --
</TABLE>
Realized gains and losses on investments sold are recorded on the basis of
identified cost.
32
<PAGE>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Security transactions are accounted for on a trade date basis.
The cost basis for federal income tax purposes is the same as for financial
accounting purposes except for Government Income Fund, Total Return Bond Fund
and Tax-Free Income Fund whose tax cost is $196,235,528, $115,394,460 and
$304,709,559, respectively.
Delivery and payment for securities which have been purchased by the Funds
on a forward commitment or when issued basis can take place a month or more
after the transaction date. During this period, the Funds are subject to market
fluctuations in the price of the purchased securities.
REPURCHASE AGREEMENTS -- Each Fund may purchase portfolio securities from
financial institutions deemed to be creditworthy by the investment adviser
subject to the seller's agreement to repurchase and the Fund's agreement to
resell such securities. Securities purchased subject to 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 underlying securities 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, often based upon the prevailing overnight repurchase rate.
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, unless offset by any available
capital loss carryovers, is distributed to shareholders at least annually.
Distributions from net investment income and realized capital gain are based
on their tax basis. The significant difference between financial statement
amounts available for distribution and distributions made in accordance with
income tax regulations are primarily attributable to the deferral of
post-October losses, wash sales and utilization of capital loss carryovers.
SECURITY LOANS -- The Funds receive compensation for lending securities in
the form of fees or by retaining a portion of the interest on the investment
securities or any cash received as collateral. A Fund also continues to receive
interest or dividends on the securities loaned. Security loans are secured by
collateral equal to at least 102%, at all times, of the market value of the
securities loaned plus accrued interest. Gain or loss in the market price of the
securities loaned that may occur during the term of the loan will be reflected
in the value of the Fund.
EXPENSE ALLOCATION -- Each share of each class represents an undivided,
proportionate interest in the Fund. The Funds' class specific expenses include
distribution expenses, if any, transfer agent fees and expenses and certain
other expenses that can be solely attributable to a class.
ORGANIZATION COSTS -- The costs incurred by the Total Return Bond Fund in
connection with its organization and registration of shares, in amount of
$32,694, has been capitalized and is being amortized using the straight-line
method over a five year period beginning at the commencement of the Fund's
operation. Certain of these costs were paid by Forum Financial Services, Inc.
and will be reimbursed by the Fund.
FEDERAL INCOME TAX -- Each Fund has qualified, and intends to continue to
qualify, as a regulated investment company and distributes all of its taxable
income. Therefore, each Fund is not subject to Federal income tax. As of May 31,
1995 certain of the Funds have capital loss carryovers available to offset
future capital gains as follows:
<TABLE>
<CAPTION>
YEAR OF
EXPIRATION
2003 TOTAL
---------- ----------
<S> <C> <C>
Adjustable. U.S. Government Reserve Fund.............................................. $4,272,628 $4,272,628
Government Income Fund................................................................ 3,657,967 3,657,967
Income Fund........................................................................... 3,695,449 3,695,449
Tax-Free Income Fund.................................................................. 5,877,795 5,877,795
Colorado Tax-Free Fund................................................................ 908,756 908,756
Minnesota Tax-Free Fund............................................................... 343,741 343,741
</TABLE>
2. ADVISORY, SERVICING FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The investment adviser of each Fund is Norwest Investment Management, a part
of Norwest Bank Minnesota, N.A. (the 'Adviser'). Norwest Bank Minnesota, N.A. is
a subsidiary of Norwest Corporation. The Adviser receives an advisory fee from
33
<PAGE>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Adjustable U.S. Government Reserve Fund, Income Fund, Total Return Bond Fund and
Tax-Free Income Fund at an annual rate of 0.50% of the average daily net assets
of each Fund and from Government Income Fund at an annual rate of 0.40% of the
average daily net assets of that Fund. The Adviser receives an advisory fee from
Colorado Tax-Free Fund and Minnesota Tax-Free Fund at an annual rate of 0.50% of
the average daily net assets for the first $300 million of net assets of each
Fund, declining to 0.42% of the average daily net assets of each Fund's net
assets in excess of $700 million.
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.
Norwest Bank Minnesota, N.A. 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 0.30% of the average daily net assets of each
Fund. Transfer agent fees are based on the average daily net assets attributable
to each class of each Fund's shares.
The manager of the Trust is Forum Financial Services, Inc. ('Forum'), a
registered broker-dealer and a member of the National Association of Securities
Dealers, Inc. Forum receives a management fee for its services from each 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 Adjustable U.S. Government Reserve Fund, Government Income Fund,
Income Fund, Total Return Bond Fund, Tax-Free Income Fund, Colorado Tax-Free
Fund and Minnesota Tax-Free Fund were: $625, $1,260, $1,213, $1,056, $1,307,
$556, $243.
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.
The Trust has adopted a Distribution Plan (the 'Plan') with respect to B
shares of each Fund pursuant to Rule 12b-1 under the Investment Company Act of
1940. The Plans authorize 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 each Fund attributable to B shares. No Fund
incurred any maintenance fees during the period ended November 30, 1995. The
distribution payments are 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 each Fund for each B 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 3.75% for all Fixed
Income Funds, except Adjustable U.S. Government Reserve Fund, for which it is
1.50%.
In the event that the Plan is terminated or not continued, the Fund will
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 November 30, 1995 were as follows:
<TABLE>
<S> <C>
Adjustable U.S. Government Reserve Fund...................................................... $ 4,647
Government Income Fund....................................................................... 258,970
Income Fund.................................................................................. 80,842
Total Return Bond Fund....................................................................... 38,202
Tax-Free Income Fund......................................................................... 101,742
Colorado Tax-Free Fund....................................................................... 107,886
Minnesota Tax-Free Fund...................................................................... 159,003
</TABLE>
34
<PAGE>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For the period ended November 30, 1995, fees waived and expenses reimbursed
by the Trust's custodian and transfer agent, investment adviser, and manager and
distributor were as follows:
<TABLE>
<CAPTION>
FEES WAIVED EXPENSES
-------------------------------------- REIMBURSED
CUSTODIAN AND ----------
TRANSFER AGENT ADVISER FORUM FORUM
-------------- -------- -------- ----------
<S> <C> <C> <C> <C>
Adjustable U.S. Government Reserve Fund................. $ 2,431 $ 24,267 $ 57,724 $ --
Government Income Fund.................................. 9,097 3,299 127,867 --
Income Fund............................................. 11,924 62,827 121,129 --
Total Return Bond Fund.................................. 3,569 166,049 10,524 --
Tax-Free Income Fund.................................... 35,867 201,499 98,983 --
Colorado Tax-Free Fund.................................. 44,902 140,320 47,145 --
Minnesota Tax-Free Fund................................. 34,667 64,199 25,030 --
</TABLE>
3. PURCHASES AND SALES OF SECURITIES
Cost of purchases and proceeds from sales (including maturities) of
securities (excluding short-term investments) during the period ended November
30,1995 were as follows:
<TABLE>
<CAPTION>
COST OF PROCEEDS FROM
PURCHASES SALES
------------ -------------
<S> <C> <C>
Adjustable U.S. Government Reserve Fund................................... $ 35,129,298 $ 52,381,047
Government Income Fund.................................................... 157,988,519 78,487,421
Income Fund............................................................... 149,863,089 121,170,921
Total Return Bond Fund.................................................... 46,285,425 22,934,527
Tax-Free Income Fund...................................................... 193,910,380 31,666,060
Colorado Tax-Free Fund.................................................... 33,150,871 32,476,110
Minnesota Tax-Free Fund................................................... 16,106,264 9,009,221
</TABLE>
4. CAPITAL SHARE TRANSACTIONS
Transactions of Fund shares are summarized on the following tables:
ADJUSTABLE U.S. GOVERNMENT RESERVE FUND
<TABLE>
<CAPTION>
A SHARES B SHARES I SHARES
------------------------- ------------------------- -------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31,
1995 1995 1995 1995 1995 1995
------------ ---------- ------------ ---------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
Shares sold............................. 23,281 61,517 0 7,145 86,165 1,377,019
Shares repurchased...................... (2,536,195) (4,125,264) (2,181) (3,550) (262,892) (1,753,915)
Shares issued on reinvestment of
dividends............................. 108,997 293,394 464 952 1,481 14,779
------------ ---------- ------ ---------- ------------ ----------
Net increase (decrease)................. (2,403,917) (3,770,353) (1,717) 4,547 (175,246) (362,117 )
------------ ---------- ------ ---------- ------------ ----------
------------ ---------- ------ ---------- ------------ ----------
</TABLE>
35
<PAGE>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
GOVERNMENT INCOME FUND
<TABLE>
<CAPTION>
A SHARES B SHARES I SHARES
------------------------- ------------------------- -------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31,
1995 1995 1995 1995 1995 1995
------------ ---------- ------------ ---------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
Shares sold............................. 395,412 479,759 126,356 284,497 7,656,762 2,594,562
Shares repurchased...................... (241,448) (818,867) (86,897) (192,459) (1,070,924) (5,294,803)
Shares issued on reinvestment of
dividends............................. 52,569 123,896 21,638 56,454 9,799 100,372
------------ ---------- ------------ ---------- ------------ ----------
Net increase (decrease)................. 206,533 (215,212) 61,097 148,492 6,595,637 (2,599,869)
------------ ---------- ------------ ---------- ------------ ----------
------------ ---------- ------------ ---------- ------------ ----------
</TABLE>
INCOME FUND
<TABLE>
<CAPTION>
A SHARES B SHARES I SHARES
------------------------- ------------------------- -------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31,
1995 1995 1995 1995 1995 1995
------------ ---------- ------------ ---------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
Shares sold............................. 79,401 178,942 48,727 92,963 4,037,743 4,383,174
Shares repurchased...................... (149,478) (218,980) (59,133) (38,366) (1,002,269) (2,837,868)
Shares issued on reinvestment of
dividends............................. 17,010 38,329 7,716 14,153 8,916 40,804
------------ ---------- ------------ ---------- ------------ ----------
Net increase (decrease)................. (53,067) (1,709) (2,690) 68,750 3,044,390 1,586,110
------------ ---------- ------------ ---------- ------------ ----------
------------ ---------- ------------ ---------- ------------ ----------
</TABLE>
TOTAL RETURN BOND FUND
<TABLE>
<CAPTION>
A SHARES B SHARES I SHARES
------------------------- ------------------------- -------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31,
1995 1995 1995 1995 1995 1995
------------ ---------- ------------ ---------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
Shares sold............................. 66,521 49,366 81,392 76,640 2,549,836 9,509,232
Shares repurchased...................... (9,615) (5,757) (4,886) (4,136) (695,129) (1,120,809)
Shares issued on reinvestment of
dividends............................. 2,467 2,169 3,445 2,415 250,928 274,125
------------ ---------- ------------ ---------- ------------ ----------
Net increase............................ 59,373 45,778 79,951 74,919 2,105,635 8,662,548
------------ ---------- ------------ ---------- ------------ ----------
------------ ---------- ------------ ---------- ------------ ----------
</TABLE>
TAX-FREE INCOME FUND
<TABLE>
<CAPTION>
A SHARES B SHARES I SHARES
------------------------- ------------------------- -------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31,
1995 1995 1995 1995 1995 1995
------------ ---------- ------------ ---------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
Shares sold............................. 403,242 432,472 137,467 121,081 18,074,868 3,617,332
Shares repurchased...................... (222,433) (1,034,258) (17,498) (29,621) (750,500) (4,649,999)
Shares issued on reinvestment of
dividends............................. 75,530 152,099 6,662 9,889 5,393 21,238
------------ ---------- ------------ ---------- ------------ ----------
Net increase (decrease)................. 256,339 (449,687 ) 126,631 101,349 17,329,761 (1,011,429)
------------ ---------- ------------ ---------- ------------ ----------
------------ ---------- ------------ ---------- ------------ ----------
</TABLE>
36
<PAGE>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
COLORADO TAX-FREE FUND
<TABLE>
<CAPTION>
A SHARES B SHARES I SHARES
------------------------- ------------------------- -------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31,
1995 1995 1995 1995 1995 1995
------------ ---------- ------------ ---------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
Shares sold............................. 257,284 240,052 59,572 76,674 278,451 1,822,348
Shares repurchased...................... (262,914) (1,009,103) (35,039) (29,369) (406,280) (908,624 )
Shares issued on reinvestment of
dividends............................. 54,911 121,929 7,727 13,992 522 1,121
------------ ---------- ------------ ---------- ------------ ----------
Net increase (decrease)................. 49,281 (647,122 ) 32,260 61,297 (127,307) 914,845
------------ ---------- ------------ ---------- ------------ ----------
------------ ---------- ------------ ---------- ------------ ----------
</TABLE>
MINNESOTA TAX-FREE FUND
<TABLE>
<CAPTION>
A SHARES B SHARES I SHARES
------------------------- ------------------------- -------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31,
1995 1995 1995 1995 1995 1995
------------ ---------- ------------ ---------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
Shares sold............................. 703,364 783,054 171,522 253,488 (20,713) 136,301
Shares repurchased...................... (87,023) (318,995) (31,732) (21,120) (1,072) (51,766)
Shares issued on reinvestment of
dividends............................. 36,967 39,538 10,615 10,155 602 1,722
------------ ---------- ------------ ---------- ------------ ----------
Net increase (decrease)................. 653,308 503,597 150,405 242,523 (21,183) 86,257
------------ ---------- ------------ ---------- ------------ ----------
------------ ---------- ------------ ---------- ------------ ----------
</TABLE>
5. PORTFOLIO SECURITIES LOANED
The following funds had loaned securities as of November 30, 1995:
<TABLE>
<CAPTION>
VALUE OF COLLATERAL
SECURITIES LOANED VALUE
----------------- -----------
<S> <C> <C>
Government Income Fund.................................................. $30,631,970 $31,282,500
Income Fund............................................................. 25,427,396 27,396,160
Total Return Bond Fund.................................................. 34,543,034 36,817,216
----------------- -----------
Net Total............................................................... $90,602,400 $95,495,876
----------------- -----------
----------------- -----------
</TABLE>
Collateral is comprised of various securities including time deposits,
commercial paper, corporate bonds and repurchase agreements.
Security loan fee income received for the period ended November 30, 1995:
Government Income Fund, $11,814; Income Fund, $7,551; and Total Return Bond
Fund, $2,932.
37
<PAGE>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
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 ENDING NET
VALUE PER INVESTMENT GAIN (LOSS) ON INVESTMENT REALIZED ASSET VALUE
SHARE INCOME INVESTMENTS INCOME GAINS PER SHARE
--------- ---------- -------------- ---------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
ADJUSTABLE U.S. GOVERNMENT RESERVE FUND
A SHARES
Period Ended November 30,
1995......................... $ 9.38 $ 0.27 $ 0.06 ($0.27) $-- $ 9.44
Year Ended May 31,
1995........................... 9.66 0.55 (0.28) (0.55) -- 9.38
1994........................... 10.12 0.48 (0.43) (0.48) (0.03) 9.66
Period Ended May 31, 1993(c)... 10.00 0.47 0.13 (0.47) (0.01) 10.12
B SHARES
Period Ended November 30,
1995........................... 9.34 0.23 0.06 (0.23) -- 9.40
Year Ended May 31, 1995........ 9.62 0.47 (0.28) (0.47) -- 9.34
Period Ended May 31, 1994(c)... 10.14 0.32 (0.49) (0.32) (0.03) 9.62
I SHARES
Period Ended November 30,
1995......................... 9.38 0.27 0.06 (0.27) -- 9.44
Year Ended May 31, 1995........ 9.67 0.55 (0.29) (0.55) -- 9.38
Period Ended May 31, 1994(c)... 10.14 0.40 (0.44) (0.40) (0.03) 9.67
GOVERNMENT INCOME FUND
A SHARES
Period Ended November 30,
1995......................... 8.76 0.27 0.09 (0.27) -- 8.85
Year Ended May 31,
1995........................... 9.04 0.63 (0.20) (0.63) (0.08) 8.76
1994........................... 9.82 0.67 (0.78) (0.67) -- 9.04
1993........................... 9.60 0.71 0.29 (0.71) (0.07) 9.82
Six Months Ended May 31,
1992(d)...................... 9.70 0.37 (0.10) (0.37) -- 9.60
Year Ended November 30,
1991........................... 9.73 0.90 (0.03) (0.90) -- 9.70
1990........................... 9.96 0.96 (0.23) (0.96) -- 9.73
B SHARES
Period Ended November 30,
1995......................... 8.75 0.24 0.09 (0.24) -- 8.84
Year Ended May 31, 1995........ 9.03 0.56 (0.20) (0.56) (0.08) 8.75
Period Ended May 31, 1994(c)... 9.89 0.48 (0.86) (0.48) -- 9.03
I SHARES
Period Ended November 30,
1995......................... 8.76 0.27 0.09 (0.27) -- 8.85
Year Ended May 31, 1995........ 9.04 0.63 (0.20) (0.63) (0.08) 8.76
Period Ended May 31, 1994(c)... 9.89 0.55 (0.85) (0.55) -- 9.04
INCOME FUND
A SHARES
Period Ended November 30,
1995......................... 9.63 0.31 0.15 (0.31) -- 9.78
Year Ended May 31,
1995........................... 9.52 0.65 0.11 (0.65) -- 9.63
1994........................... 10.61 0.70 (0.83) (0.70) (0.26) 9.52
1993........................... 10.52 0.77 0.39 (0.77) (0.30) 10.61
1992........................... 10.23 0.82 0.53 (0.82) (0.24) 10.52
1991........................... 9.94 0.89 0.29 (0.89) -- 10.23
B SHARES
Period Ended November 30,
1995......................... 9.61 0.27 0.16 (0.27) -- 9.77
Year Ended May 31, 1995........ 9.51 0.58 0.10 (0.58) -- 9.61
Period Ended May 31, 1994(c)... 10.67 0.50 (0.90) (0.50) (0.26) 9.51
I SHARES
Period Ended November 30,
1995......................... 9.62 0.31 0.15 (0.31) -- 9.77
Year Ended May 31, 1995........ 9.51 0.65 0.11 (0.65) -- 9.62
Period Ended May 31, 1994(c)... 10.68 0.58 (0.91) (0.58) (0.26) 9.51
TOTAL RETURN BOND FUND
A SHARES
Period Ended November 30,
1995......................... 9.73 0.32 0.08 (0.32) -- 9.81
Year Ended May 31, 1995........ 9.54 0.67 0.19 (0.67) -- 9.73
Period Ended May 31, 1994(c)... 10.00 0.27 (0.46) (0.27) -- 9.54
B SHARES
Period Ended November 30,
1995......................... 9.73 0.29 0.09 (0.29) -- 9.82
Year Ended May 31, 1995........ 9.54 0.59 0.19 (0.59) -- 9.73
Period Ended May 31, 1994(c)... 10.00 0.24 (0.46) (0.24) -- 9.54
I SHARES
Period Ended November 30,
1995......................... 9.73 0.32 0.09 (0.32) -- 9.82
Year Ended May 31, 1995........ 9.54 0.67 0.19 (0.67) -- 9.73
Period Ended May 31, 1994(c)... 10.00 0.27 (0.46) (0.27) -- 9.54
<CAPTION>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- ----------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING DURING THE PERIOD
RATIOS TO AVERAGE NET
NET ASSETS ASSETS AT
------------------------- END OF
NET PORTFOLIO PERIOD
INVESTMENT TOTAL TURNOVER (000'S
EXPENSES(A) INCOME RETURN RATE OMITTED)
----------- ---------- ------ -------- ---------
<S> <C> <C> <C> <C> <C>
ADJUSTABLE U.S. GOVERNMENT RESERVE FUND
A SHARES
Period Ended November 30,
1995......................... 0.85%(b) 5.80%(b) 7.11 %(b) 61.19% $ 19,248
Year Ended May 31,
1995........................... 0.85% 5.75% 2.87 % 86.05% 41,656
1994........................... 0.82% 4.73% 0.40 % 149.00% 79,378
Period Ended May 31, 1993(c)... 0.38%(b) 4.77%(b) 6.33 %(b) 61.55% 77,367
B SHARES
Period Ended November 30,
1995........................... 1.59%(b) 4.93%(b) 6.33 %(b) 61.19% 392
Year Ended May 31, 1995........ 1.59% 5.05% 2.10 % 86.05% 405
Period Ended May 31, 1994(c)... 1.51%(b) 3.82%(b) (1.92 %)(b) 149.00% 374
I SHARES
Period Ended November 30,
1995......................... 0.85%(b) 5.66%(b) 7.10 %(b) 61.19% 19,997
Year Ended May 31, 1995........ 0.85% 5.72% 2.76 % 86.05% 21,515
Period Ended May 31, 1994(c)... 0.85%(b) 4.77%(b) (0.58 %)(b) 149.00% 25,678
GOVERNMENT INCOME FUND
A SHARES
Period Ended November 30,
1995......................... 0.75%(b) 6.24%(b) 8.60 %(b) 58.60% 20,350
Year Ended May 31,
1995........................... 0.75% 7.30% 5.20 % 125.34% 18,332
1994........................... 0.60% 6.77% (1.42 %) 24.70% 20,860
1993........................... 0.60% 7.21% 10.71 % 31.61% 131,722
Six Months Ended May 31,
1992(d)...................... 0.60%(b) 7.19%(b) 5.58 %(b) 4.41% 79,533
Year Ended November 30,
1991........................... 0.60% 9.25% 9.37 % 25.05% 8,615
1990........................... 0.60% 9.80% 7.77 % 18.48% 4,840
B SHARES
Period Ended November 30,
1995......................... 1.50%(b) 5.49%(b) 7.75 %(b) 58.60% 11,317
Year Ended May 31, 1995........ 1.50% 6.51% 4.41 % 125.34% 10,667
Period Ended May 31, 1994(c)... 1.31%(b) 5.89%(b) (4.61 %)(b) 24.70% 9,665
I SHARES
Period Ended November 30,
1995......................... 0.75%(b) 6.23%(b) 8.55 %(b) 58.60% 153,670
Year Ended May 31, 1995........ 0.75% 7.30% 5.21 % 125.34% 94,328
Period Ended May 31, 1994(c)... 0.61%(b) 6.86%(b) (3.78 %)(b) 24.70% 120,830
INCOME FUND
A SHARES
Period Ended November 30,
1995......................... 0.75%(b) 6.48%(b) 9.92 %(b) 96.68% 5,811
Year Ended May 31,
1995........................... 0.75% 7.02% 8.49 % 98.83% 6,231
1994........................... 0.60% 6.72% (1.58 %) 26.67% 6,177
1993........................... 0.60% 7.18% 11.46 % 87.98% 85,252
1992........................... 0.31% 7.80% 13.58 % 84.24% 63,973
1991........................... 0.16% 8.82% 12.38 % 61.33% 50,138
B SHARES
Period Ended November 30,
1995......................... 1.50%(b) 5.72%(b) 9.34 %(b) 96.68% 3,322
Year Ended May 31, 1995........ 1.50% 6.24% 7.57 % 98.83% 3,296
Period Ended May 31, 1994(c)... 1.33%(b) 5.82%(b) (4.82 %)(b) 26.67% 2,605
I SHARES
Period Ended November 30,
1995......................... 0.75%(b) 6.46%(b) 9.92 %(b) 96.68% 141,508
Year Ended May 31, 1995........ 0.75% 7.02% 8.49 % 98.83% 109,994
Period Ended May 31, 1994(c)... 0.61%(b) 6.75%(b) (4.04 %)(b) 26.67% 93,665
TOTAL RETURN BOND FUND
A SHARES
Period Ended November 30,
1995......................... 0.75%(b) 6.51%(b) 8.53 %(b) 21.69% 1,187
Year Ended May 31, 1995........ 0.64% 6.94% 9.42 % 35.19% 599
Period Ended May 31, 1994(c)... 0.37%(b) 6.04%(b) (4.64 %)(b) 37.50% 150
B SHARES
Period Ended November 30,
1995......................... 1.51%(b) 5.80%(b) 7.94 %(b) 21.69% 1,712
Year Ended May 31, 1995........ 1.41% 6.17% 8.59 % 35.19% 919
Period Ended May 31, 1994(c)... 1.11%(b) 5.40%(b) (5.23 %)(b) 37.50% 186
I SHARES
Period Ended November 30,
1995......................... 0.75%(b) 6.65%(b) 8.76 %(b) 21.69% 117,740
Year Ended May 31, 1995........ 0.71% 7.04% 9.43 % 35.19% 96,199
Period Ended May 31, 1994(c)... 0.46%(b) 6.81%(b) (4.62 %)(b) 37.50% 11,694
</TABLE>
See notes to financial statements.
38
<PAGE>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING DURING THE PERIOD
<TABLE>
<CAPTION>
BEGINNING NET REALIZED DIVIDENDS
NET ASSET NET AND UNREALIZED FROM NET DISTRIBUTIONS ENDING NET
VALUE PER INVESTMENT GAIN (LOSS) ON INVESTMENT FROM NET ASSET VALUE
SHARE INCOME INVESTMENTS INCOME REALIZED GAINS PER SHARE
--------- ---------- --------------- ---------- -------------- -----------
<S> <C> <C> <C> <C> <C> <C>
TAX-FREE INCOME FUND
A SHARES
Period Ended November 30, 1995 $ 9.82 $ 0.27 $0.25 ($0.27) $ -- $ 10.07
Year Ended May 31,
1995.......................... 9.60 0.55 0.22 (0.55) -- 9.82
1994.......................... 10.06 0.58 (0.39) (0.58) (0.07) 9.60
1993.......................... 9.98 0.66 0.11 (0.66) (0.03) 10.06
1992.......................... 9.95 0.70 0.04 (0.70) (0.01) 9.98
1991.......................... 9.78 0.70 0.17 (0.70) -- 9.95
B SHARES
Period Ended November 30,
1995........................ 9.82 0.23 0.25 (0.23) -- 10.07
Year Ended May 31, 1995....... 9.60 0.48 0.22 (0.48) -- 9.82
Period Ended May 31,
1994(c)..................... 10.17 0.39 (0.50) (0.39) (0.07) 9.60
I SHARES
Period Ended November 30,
1995........................ 9.82 0.27 0.25 (0.27) -- 10.07
Year Ended May 31, 1995....... 9.60 0.55 0.22 (0.55) -- 9.82
Period Ended May 31,
1994(c)..................... 10.14 0.47 (0.47) (0.47) (0.07) 9.60
COLORADO TAX-FREE FUND
A SHARES
Period Ended November 30,
1995........................ 9.90 0.26 0.29 (0.26) -- 10.19
Year Ended May 31, 1995....... 9.69 0.48 0.21 (0.48) -- 9.90
Period Ended May 31,
1994(c)..................... 10.00 0.51 (0.30) (0.51) (0.01) 9.69
B SHARES
Period Ended November 30,
1995........................ 9.91 0.22 0.30 (0.22) -- 10.21
Year Ended May 31, 1995....... 9.70 0.41 0.21 (0.41) -- 9.91
Period Ended May 31,
1994(c)..................... 10.04 0.35 (0.33) (0.35) (0.01) 9.70
I SHARES
Period Ended November 30,
1995........................ 9.90 0.26 0.30 (0.26) -- 10.20
Year Ended May 31, 1995....... 9.69 0.48 0.21 (0.48) -- 9.90
Period Ended May 31,
1994(c)..................... 10.22 0.39 (0.52) (0.39) (0.01) 9.69
MINNESOTA TAX-FREE FUND
A SHARES
Period Ended November 30,
1995........................ 10.45 0.29 0.22 (0.29) -- 10.67
Year Ended May 31,
1995.......................... 10.15 0.53 0.30 (0.53) -- 10.45
1994.......................... 10.65 0.53 (0.31) (0.53) (0.19) 10.15
1993.......................... 10.27 0.55 0.39 (0.55) (0.01) 10.65
Six Months Ended May 31,
1992(d)..................... 10.20 0.30 0.11 (0.30) (0.04) 10.27
Year Ended November 30,
1991.......................... 10.15 0.61 0.12 (0.61) (0.07) 10.20
1990.......................... 10.14 0.62 0.02 (0.62) (0.01) 10.15
B SHARES
Period Ended November 30,
1995........................ 10.44 0.25 0.22 (0.25) -- 10.66
Year Ended May 31, 1995....... 10.15 0.45 0.29 (0.45) -- 10.44
Period Ended May 31,
1994(c)..................... 10.77 0.35 (0.43) (0.35) (0.19) 10.15
I SHARES
Period Ended November 30,
1995........................ 10.45 0.29 0.22 (0.29) -- 10.67
Year Ended May 31, 1995....... 10.16 0.53 0.29 (0.53) -- 10.45
Period Ended May 31,
1994(c)..................... 10.74 0.43 (0.39) (0.43) (0.19) 10.16
<CAPTION>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- ----------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING DURING THE PERIOD
NET
RATIOS TO AVERAGE ASSETS
NET ASSETS AT END
------------------------- OF
NET PORTFOLIO PERIOD
INVESTMENT TOTAL TURNOVER (000'S
EXPENSES(A) INCOME RETURN RATE OMITTED)
----------- ---------- ------ -------- --------
<S> <C> <C> <C> <C> <C>
TAX-FREE INCOME FUND
A SHARES
Period Ended November 30, 1995 0.60%(b) 5.47%(b) 11.03%(b) 20.90% $ 34,164
Year Ended May 31,
1995.......................... 0.60% 5.87% 8.42% 130.90% 30,786
1994.......................... 0.60% 5.77% 1.74% 116.54% 34,426
1993.......................... 0.60% 6.47% 7.86% 42.81% 109,983
1992.......................... 0.34% 7.03% 7.65% 73.66% 56,250
1991.......................... 0.14% 7.09% 9.16% 101.11% 35,215
B SHARES
Period Ended November 30,
1995........................ 1.35%(b) 4.69%(b) 10.14%(b) 20.90% 5,101
Year Ended May 31, 1995....... 1.35% 5.05% 7.61% 130.90% 3,729
Period Ended May 31,
1994(c)..................... 1.31%(b) 4.76%(b) (0.98%)(b) 116.54% 2,674
I SHARES
Period Ended November 30,
1995........................ 0.60%(b) 5.42%(b) 10.97%(b) 20.90% 271,497
Year Ended May 31, 1995....... 0.60% 5.84% 8.42% 130.90% 94,454
Period Ended May 31,
1994(c)..................... 0.60%(b) 5.71%(b) (0.21%)(b) 116.54% 102,084
COLORADO TAX-FREE FUND
A SHARES
Period Ended November 30,
1995........................ 0.30%(b) 5.20%(b) 11.49%(b) 58.67% 27,269
Year Ended May 31, 1995....... 0.30% 5.10% 7.47% 47.88% 25,997
Period Ended May 31,
1994(c)..................... 0.07%(b) 4.94%(b) 2.02%(b) 40.92% 31,724
B SHARES
Period Ended November 30,
1995........................ 1.05%(b) 4.65%(b) 10.87%(b) 58.67% 5,682
Year Ended May 31, 1995....... 1.05% 4.32% 6.67% 47.88% 5,198
Period Ended May 31,
1994(c)..................... 0.85%(b) 4.08%(b) 0.27%(b) 40.92% 4,494
I SHARES
Period Ended November 30,
1995........................ 0.30%(b) 5.21%(b) 11.70%(b) 58.67% 23,969
Year Ended May 31, 1995....... 0.30% 5.08% 7.47% 47.88% 24,539
Period Ended May 31,
1994(c)..................... 0.11%(b) 5.03%(b) 0.90%(b) 40.92% 15,153
MINNESOTA TAX-FREE FUND
A SHARES
Period Ended November 30,
1995........................ 0.33%(b) 5.48%(b) 10.08%(b) 36.50% 22,853
Year Ended May 31,
1995.......................... 0.49% 5.25% 8.55% 139.33% 15,559
1994.......................... 0.61% 4.92% 1.94% 84.23% 10,008
1993.......................... 0.75% 5.13% 9.35% 44.29% 10,852
Six Months Ended May 31,
1992(d)..................... 0.90%(b) 5.86%(b) 8.10%(b) 6.70% 4,896
Year Ended November 30,
1991.......................... 0.90% 6.01% 7.40% 37.32% 4,575
1990.......................... 0.90% 6.21% 6.50% 30.86% 4,243
B SHARES
Period Ended November 30,
1995........................ 1.08%(b) 4.74%(b) 9.27%(b) 36.50% 6,801
Year Ended May 31, 1995....... 1.21% 4.52% 7.63% 139.33% 5,090
Period Ended May 31,
1994(c)..................... 1.31%(b) 3.99%(b) (0.58%)(b) 84.23% 2,485
I SHARES
Period Ended November 30,
1995........................ 0.33%(b) 5.51%(b) 10.08%(b) 36.50% 1,610
Year Ended May 31, 1995....... 0.48% 5.29% 8.44% 139.33% 1,799
Period Ended May 31,
1994(c)..................... 0.61%(b) 4.90%(b) 0.29%(b) 84.23% 872
</TABLE>
See notes to financial statements.
39
<PAGE>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING DURING THE PERIOD
(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
PERIOD SIX MONTHS NOVEMBER
ENDED YEAR ENDED MAY 31, ENDED 30,
NOVEMBER 30, --------------------------- MAY 31, ----
1995(b) 1995 1994 1993 1992(b)(d) 1991
------------ ---- ----- ---- ---------- ----
<S> <C> <C> <C> <C> <C> <C>
Adjustable U.S. Government Reserve Fund
A shares............................................... 1.14% 1.15% 1.14% 1.15%(b) -- --
B shares............................................... 2.88% 3.07% 2.10%(b) -- -- --
I shares............................................... 1.11% 1.09% 1.13%(b) -- -- --
Government Income Fund
A shares............................................... 0.97% 1.01% 0.99% 0.99% 1.03% 1.71%
B shares............................................... 2.05% 2.00% 2.00%(b) -- -- --
I shares............................................... 0.93% 0.93% 0.97%(b) -- -- --
Total Return Bond Fund
A shares............................................... 1.26% 2.38% 13.29%(b) -- -- --
B shares............................................... 2.87% 3.09% 8.29%(b) -- -- --
I shares............................................... 1.07% 1.17% 2.10%(b) -- -- --
Arizona Tax-Free Fund
A shares............................................... 4.31% 3.33% 4.51%(b) -- -- --
B shares............................................... 7.66% 4.42% 8.48%(b) -- -- --
I shares............................................... 3.69% 3.42% 8.51%(b) -- -- --
Colorado Tax-Free Fund
A shares............................................... 1.11% 1.15% 1.23%(b) -- -- --
B shares............................................... 2.10% 2.16% 2.24%(b) -- -- --
I shares............................................... 1.10% 1.16% 1.21%(b) -- -- --
Minnesota Tax-Free Fund
A shares............................................... 1.23% 1.61% 1.52% 1.79% 2.38% 2.63%
B shares............................................... 2.24% 2.62% 2.45%(b) -- -- --
I shares............................................... 1.26% 1.58% 1.54%(b) -- -- --
<CAPTION>
PERIOD
ENDED YEAR ENDED MAY 31,
NOVEMBER 30, -----------------------------------------------------
1995(B) 1995 1994 1993 1992 1991
------------ ---- ----- ---- ---------- ----
<S> <C> <C> <C> <C> <C> <C>
Income Fund
A shares............................................... 1.07% 1.24% 1.16% 1.10% 1.08% 1.11%
B shares............................................... 2.40% 2.21% 2.08%(b) -- -- --
I shares............................................... 1.05% 1.06% 1.09%(b) -- -- --
Tax-Free Income Fund
A shares............................................... 1.08% 1.12% 1.14% 1.12% 1.14% 1.08%
B shares............................................... 2.35% 2.21% 2.24%(b) -- -- --
I shares............................................... 1.02% 1.05% 1.10%(b) -- -- --
<CAPTION>
YEAR
ENDED
NOVEMBER 30,
1990
----
<S> <C>
Adjustable U.S. Government Reserve Fund
A shares............................................... --
B shares............................................... --
I shares............................................... --
Government Income Fund
A shares............................................... 2.04%
B shares............................................... --
I shares............................................... --
Total Return Bond Fund
A shares............................................... --
B shares............................................... --
I shares............................................... --
Arizona Tax-Free Fund
A shares............................................... --
B shares............................................... --
I shares............................................... --
Colorado Tax-Free Fund
A shares............................................... --
B shares............................................... --
I shares............................................... --
Minnesota Tax-Free Fund
A shares............................................... 2.37%
B shares............................................... --
I 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.
See notes to financial statements.
40
<PAGE>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
ADJUSTABLE U.S. GOVERNMENT RESERVE FUND
Asset Backed Securities (32.0%):
$ 129,636 Small Business Administration, Adjustable Rate Pool 500025, 8.625%, due 12/25/10..... $ 136,604
103,038 Small Business Administration, Adjustable Rate Pool 500276, 10.625%, due 5/25/07..... 112,569
266,830 Small Business Administration, Adjustable Rate Pool 500299, 10.625%, due 6/25/07..... 291,512
777,102 Small Business Administration, Adjustable Rate Pool 500392, 8.625%, due 11/25/12..... 833,441
111,864 Small Business Administration, Adjustable Rate Pool 500569, 10.625%, due 6/25/08..... 122,212
755,141 Small Business Administration, Adjustable Rate Pool 500957, 9.00%, due 7/25/14....... 815,552
90,645 Small Business Administration, Adjustable Rate Pool 501013, 9.625%, due 6/25/98...... 92,232
762,167 Small Business Administration, Adjustable Rate Pool 501224, 7.50%, due 6/25/15....... 793,606
190,064 Small Business Administration, Adjustable Rate Pool 501828, 9.375%, due 9/25/98...... 193,390
218,545 Small Business Administration, Adjustable Rate Pool 501973, 10.375%, due 12/25/01.... 229,746
604,387 Small Business Administration, Adjustable Rate Pool 502083, 8.625%, due 11/25/04..... 622,519
342,854 Small Business Administration, Adjustable Rate Pool 502241, 8.625%, due 4/25/03...... 350,568
658,506 Small Business Administration, Adjustable Rate Pool 502394, 10.375%, due 6/25/13..... 730,119
Asset Backed Securities, continued:
$ 1,937,244 Small Business Administration, Adjustable Rate Pool 502420, 8.625%, due 9/25/18...... $ 2,075,273
1,833,051 Small Business Administration, Adjustable Rate Pool 502462, 9.975%, due 11/25/07..... 1,986,569
1,677,592 Small Business Administration, Adjustable Rate Pool 502501, 9.975%, due 4/25/03...... 1,761,472
653,905 Small Business Administration, Adjustable Rate Pool 502568, 9.975%, due 9/25/03...... 688,235
682,841 Small Business Administration, Adjustable Rate Pool 502583, 9.975%, due 9/25/03...... 718,690
--------------
Total Asset Backed Securities (cost $12,795,265)
12,554,309
--------------
Collateralized Mortgage Obligations (23.5%):
2,469,069 AFC Home Equity Loan Trust, Series 1995 2 A1, 7.607% variable rate, due 7/25/26...... 2,485,658
63,971 Federal Home Loan Mortgage Corporation, Series 1993 G8 SB, 9.60% variable rate, due
3/25/23............................................................................. 56,368
831,185 Federal Home Loan Mortgage Corporation-GNMA, Series 1993 24 ZC, 5.15% due 8/25/12.... 806,847
198,447 Federal National Mortgage Association, Series 1993 39 FA, 7.244% variable rate, due
4/25/23............................................................................. 201,917
524,360 Residential Funding Mortgage Security, Adjustable Rate Mortgage, Series 1991 21 BA,
7.577%, due 8/25/21................................................................. 526,982
84,384 Resolution Trust Corporation, Series 1991 6 Class B4, 8.771% variable rate, due
3/25/21............................................................................. 85,017
1,007,394 Resolution Trust Corporation, Series 1991 M6 A3, 8.603% variable rate, due 6/25/21... 1,004,875
2,500,199 Resolution Trust Corporation, Series 1992 7 Class A2D, 8.35%, due 6/25/29............ 2,537,527
</TABLE>
See notes to financial statements.
41
<PAGE>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
ADJUSTABLE U.S. GOVERNMENT RESERVE FUND
(continued)
Collateralized Mortgage Obligations, continued:
$ 1,476,690 Resolution Trust Corporation, Series 1992 9 Class B4, 7.591% variable rate, due
4/25/27............................................................................. $ 1,524,451
1,501 Thrift Financing Corporation, Series D 4, 7.125%, due 5/1/16......................... 1,496
--------------
Total Collateralized Mortgage Obligations (cost $9,221,837)
9,231,138
--------------
Mortgage Backed Securities (22.5%):
2,100,000 Federal Home Loan Mortgage Corporation, Adjustable Rate Mortgage Pool 410220, 6.223%,
due 10/1/25......................................................................... 2,121,000
173,022 Federal Home Loan Mortgage Corporation, Adjustable Rate Mortgage Pool 840087, 6.445%,
due 1/1/19.......................................................................... 174,103
2,845,677 Federal National Mortgage Association, Adjustable Rate Mortgage Pool 220706, 7.94%,
due 6/1/23.......................................................................... 2,915,026
2,816,670 Federal National Mortgage Association, Adjustable Rate Mortgage Pool 321051, 6.226%,
due 8/1/25.......................................................................... 2,882,081
210,461 Federal National Mortgage Association, Adjustable Rate Mortgage Pool 60190, 7.75%,
due 3/1/18.......................................................................... 218,196
499,295 Federal National Mortgage Association, Adjustable Rate Mortgage Pool 67189, 8.00%,
due 7/17/17......................................................................... 521,034
--------------
Total Mortgage Backed Securities (cost $8,804,147)
8,831,440
--------------
U.S. Treasury Obligations (17.9%):
4,000,000 U.S. Treasury Notes, 6.00%, due 11/30/97............................................. 4,047,500
3,000,000 U.S. Treasury Notes, 5.50%, due 2/28/99.............................................. 3,003,750
--------------
Total U.S. Treasury Obligations (cost $7,032,117)
7,051,250
--------------
Short-Term Holdings (4.1%):
$ 1,611,359 Provident Institutional Funds, Federal Trust Fund (cost $1,611,359).................. $ 1,611,359
--------------
Total Investments (100.0%) (cost $39,464,725)
$ 39,279,496
--------------
--------------
GOVERNMENT INCOME FUND
Collateralized Mortgage Obligations (10.9%):
$ 4,000,000 Federal Home Loan Mortgage Corporation, Series 1991 1116 FB, 7.90%, due 3/15/20...... $ 4,169,640
3,780,839 Federal Home Loan Mortgage Corporation, Series 1991 1130 J, 7.50%, due 9/15/20....... 3,841,824
1,319,073 Federal Home Loan Mortgage Corporation, Series 1991 1169 C, 7.00%, due 11/15/19...... 1,319,997
5,000,000 Federal Home Loan Mortgage Corporation, Series 1992 1189 F, 7.50%, due 1/15/21....... 5,094,250
4,107,975 Federal National Mortgage Association, Series 1991 156 A, 7.50%, due 10/25/21........ 4,243,251
3,000,000 Federal National Mortgage Corporation, Series 1993 G 20 PG, 6.50%, due 2/25/19....... 3,035,280
--------------
Total Collateralized Mortgage Obligations (cost $21,248,936)
21,704,242
--------------
Government Agency Bonds & Notes (12.1%):
1,000,000 Federal Home Loan Bank, 8.25%, due 6/25/96........................................... 1,015,510
5,000,000 Federal Home Loan Bank, 5.89%, due 7/24/00........................................... 5,021,650
5,000,000 Student Loan Marketing Association, 8.29%, due 12/22/97.............................. 5,007,350
7,000,000 Student Loan Marketing Association, 6.05%, due 9/14/00 (b)........................... 7,085,960
6,000,000 Tennessee Valley Authority, 6.00%, due 11/1/00 (b)................................... 6,067,500
--------------
Total Government Agency Bonds & Notes (cost $23,993,888)
24,197,970
--------------
</TABLE>
See notes to financial statements.
42
<PAGE>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
GOVERNMENT INCOME FUND (continued)
Mortgage Backed Securities (4.1%):
$ 2,993,624 Federal National Mortgage Association, Adjustable Rate Mortgage Pool 160337, 7.025%,
due 7/1/97.......................................................................... $ 3,042,240
5,026,743 Federal National Mortgage Association, Adjustable Rate Mortgage Pool 303634, 6.50%,
due 6/1/00.......................................................................... 5,066,002
--------------
Total Mortgage Backed Securities (cost $8,105,025)
8,108,242
--------------
U.S. Treasury Obligations (72.9%):
6,000,000 U.S. Treasury Notes, 6.75%, due 2/28/97.............................................. 6,098,160
5,000,000 U.S. Treasury Notes, 6.875%, due 2/28/97............................................. 5,088,000
10,000,000 U.S. Treasury Notes, 5.875%, due 7/31/97............................................. 10,078,600
15,000,000 U.S. Treasury Notes, 6.00%, due 8/31/97.............................................. 15,154,200
7,500,000 U.S. Treasury Notes, 7.875%, due 4/15/98............................................. 7,910,700
13,000,000 U.S. Treasury Notes, 8.25%, due 7/15/98.............................................. 13,889,850
5,000,000 U.S. Treasury Notes, 6.50%, due 4/30/99 (b).......................................... 5,158,050
5,000,000 U.S. Treasury Notes, 6.875%, due 8/31/99............................................. 5,229,500
5,000,000 U.S. Treasury Notes, 7.50%, due 10/31/99............................................. 5,345,900
5,000,000 U.S. Treasury Notes, 7.75%, due 11/30/99............................................. 5,395,000
7,000,000 U.S. Treasury Notes, 8.00%, due 5/15/01.............................................. 7,790,510
7,000,000 U.S. Treasury Notes, 7.50%, due 11/15/01............................................. 7,665,420
5,000,000 U.S. Treasury Notes, 6.375%, due 8/15/02............................................. 5,205,050
3,000,000 U.S. Treasury Notes, 6.25%, due 2/15/03.............................................. 3,101,430
6,000,000 U.S. Treasury Notes, 7.50%, due 2/15/05.............................................. 6,723,360
5,000,000 U.S. Treasury Notes, 6.50%, due 8/15/05 (b).......................................... 5,264,000
10,000,000 U.S. Treasury Notes, 5.875%, due 11/15/05 (b)........................................ 10,093,300
U.S. Treasury Obligations, continued:
$ 15,000,000 U.S. Treasury Bonds, 10.75%, due 8/15/05............................................. $ 20,408,700
--------------
Total U.S. Treasury Obligations (cost $142,771,193)
145,599,730
--------------
Total Investments (100.0%) (cost $196,119,043)
$199,610,184
--------------
--------------
INCOME FUND
Collateralized Mortgage Obligations (25.8%):
$ 8,341,250 Federal Home Loan Mortgage Corporation, Series 1989 96 D, 7.00%, due 11/15/20........ $ 8,463,449
5,800,000 Federal Home Loan Mortgage Corporation, Series 1991 1141 F, 8.50%, due 10/15/20...... 6,006,422
4,000,000 Federal Home Loan Mortgage Corporation, Series 1992 1189 F, 7.50%, due 1/15/21....... 4,075,400
4,000,000 Federal National Mortgage Association, Series 1989 96 G, 8.75%, due 5/25/19.......... 4,174,840
9,142,000 Federal National Mortgage Association, Series 1991 33 PN, 8.25%, due 5/25/20......... 9,510,514
3,000,000 Federal National Mortgage Association, Series 1991 59 K, 8.00%, due 5/25/16.......... 3,049,440
3,000,000 Federal National Mortgage Association, Series 1992 G54 C, 7.50%, due 6/25/20......... 3,049,020
--------------
Total Collateralized Mortgage Obligations (cost $37,951,800)
38,329,085
--------------
Corporate Bonds & Notes (19.1%):
5,000,000 Aetna Life & Casualty Company, 6.75%, due 9/15/13.................................... 4,781,250
2,000,000 Cemex SA, Series 144A, 8.875%, due 6/10/98 (a)(b).................................... 1,850,000
5,000,000 Enron Corporation, 7.125%, due 5/15/07............................................... 5,231,250
5,000,000 International Business Machines Corporation, 7.50%, due 6/15/13...................... 5,368,750
5,000,000 Lehman Brothers Holdings, 8.75%, due 3/15/05......................................... 5,643,750
5,000,000 Phillips Electronics NV, 7.75%, due 5/15/25.......................................... 5,412,500
--------------
Total Corporate Bonds & Notes (cost $27,837,550)
28,287,500
--------------
</TABLE>
See notes to financial statements.
43
<PAGE>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
INCOME FUND (continued)
Government Agency Bonds & Notes (6.9%):
$ 5,000,000 Federal National Mortgage Association, 6.20%, due 6/6/00............................. $ 5,082,300
5,000,000 Federal National Mortgage Association, 8.42%, due 10/20/04........................... 5,188,700
--------------
Total Government Agency Bonds & Notes (cost $10,052,343)
10,271,000
--------------
Mortgage Backed Securities (5.4%):
2,919,970 Aames Mortgage Trust, Series 1995-C A1A, 6.55%, due 11/15/97......................... 2,925,887
5,054,200 Federal Home Loan Mortgage Corporation, Pool G10399, 6.50%, due 7/1/09............... 5,055,780
--------------
Total Mortgage Backed Securities (cost $7,922,926)
7,981,667
--------------
Receivables Backed Securities (11.6%):
3,000,000 Carco Auto Loan Master Trust, Series 1991 3 A, 7.875%, due 3/15/98................... 3,059,460
5,000,000 Nationsbank Auto Grantor Trust, Series 1995-A A, 5.85%, due 6/15/02.................. 5,004,688
3,677,112 Premier Auto Trust, Series 1994-3, 6.80%, due 12/2/99................................ 3,749,147
5,250,000 Spiegel Charge Account Trust, Series 1992 2 A, 6.95%, due 12/15/01................... 5,357,047
--------------
Total Receivables Backed Securities (cost $17,038,319)
17,170,342
--------------
U.S. Treasury Obligations (30.2%):
8,000,000 U.S. Treasury Notes, 7.75%, due 1/31/00 (b).......................................... 8,651,920
5,000,000 U.S. Treasury Notes, 6.25%, due 5/31/00.............................................. 5,143,650
4,000,000 U.S. Treasury Notes, 7.50%, due 11/15/01............................................. 4,380,240
11,000,000 U.S. Treasury Notes, 5.875%, due 2/15/04 (b)......................................... 11,101,970
7,000,000 U.S. Treasury Notes, 7.25%, due 8/15/04 (b).......................................... 7,695,310
4,000,000 U.S. Treasury Notes, 7.50%, due 2/15/05.............................................. 4,482,240
3,000,000 U.S. Treasury Notes, 7.25%, due 5/15/16.............................................. 3,354,690
--------------
Total U.S. Treasury Obligations (cost $43,318,593)
44,810,020
--------------
Short-Term Holdings (1.0%):
$ 1,475,300 Dreyfus Cash Management Fund (cost $1,475,300)....................................... $ 1,475,300
--------------
Total Investments (100.0%) (cost $145,596,831)
$148,324,914
--------------
--------------
TOTAL RETURN BOND FUND
Corporate Bonds & Notes (19.3%):
$ 1,000,000 AMR Corporation, 7.47%, due 1/28/97.................................................. $ 1,015,440
1,000,000 CIGNA Corporation, 8.00%, due 9/1/96................................................. 1,014,645
790,000 Chrysler Financial Corporation, 8.125%, due 2/15/96.................................. 807,472
1,000,000 Chrysler Financial Corporation, 6.00%, due 4/15/96................................... 1,000,162
2,000,000 Cleveland Electric Illuminating Company, 8.70%, due 6/3/96........................... 2,018,760
400,000 Cleveland Electric Illuminating Company, 9.10%, due 7/22/96.......................... 405,631
1,100,000 Commonwealth Edison Company, 8.92%, due 8/15/96,..................................... 1,120,032
250,000 Detroit Edison Company, 6.00%, due 12/1/96........................................... 249,997
1,000,000 General Motors Acceptance Corporation, 6.30%, due 2/2/96............................. 1,001,038
700,000 General Motors Acceptance Corporation, 8.65%, due 5/29/96............................ 709,702
1,400,000 General Motors Acceptance Corporation, 8.25%, due 8/29/96............................ 1,424,249
200,000 General Motors Acceptance Corporation, 7.85%, 10/25/96............................... 203,543
1,500,000 Houston Industries, Incorporated, 7.25%, due 12/1/96................................. 1,519,344
2,500,000 Illinois Power Company, 9.25%, due 12/16/96.......................................... 2,582,630
2,350,000 Long Island Lighting Company, 8.75%, due 5/1/96...................................... 2,371,399
1,000,000 McDermott International, Incorporated, 7.94%, due 6/25/97............................ 1,026,800
</TABLE>
See notes to financial statements.
44
<PAGE>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
TOTAL RETURN BOND FUND (continued)
Corporate Bonds & Notes, continued:
$ 1,500,000 Pacificorp, 8.69%, due 7/16/96....................................................... $ 1,527,205
750,000 Pennsylvania Electric Company, 7.45%, due 10/25/96................................... 760,565
1,205,000 Salomon Brothers, Incorporated, 7.30%, due 6/11/96................................... 1,209,816
1,000,000 USX Corporation, 8.875%, due 9/15/97................................................. 1,046,201
--------------
Total Corporate Bonds & Notes (cost $22,979,881)
23,014,631
--------------
Government Agency Bonds & Notes (2.0%):
1,125,000 Federal Home Loan Bank, 5.86%, due 10/24/96.......................................... 1,127,826
1,200,000 Federal National Mortgage Association, 6.06%, due 10/2/97............................ 1,208,153
--------------
Total Government Agency Bonds & Notes (cost $2,325,598)
2,335,979
--------------
U.S. Treasury Obligations (78.0%):
850,000 U.S. Treasury Notes, 7.75%, due 3/31/96.............................................. 856,375
700,000 U.S. Treasury Notes, 7.625%, due 5/31/96............................................. 707,655
6,950,000 U.S. Treasury Notes, 7.25%, due 8/31/96(b)........................................... 7,039,036
5,025,000 U.S. Treasury Notes, 8.000%, due 10/15/96(b)......................................... 5,136,485
7,500,000 U.S. Treasury Notes, 7.25%, due 11/30/96............................................. 7,633,590
4,500,000 U.S. Treasury Notes, 5.875%, due 12/31/96(b)......................................... 4,601,250
5,750,000 U.S. Treasury Notes, 8.00%, due 1/15/97.............................................. 5,913,507
2,500,000 U.S. Treasury Notes, 6.875%, due 2/28/97(b).......................................... 2,545,312
6,200,000 U.S. Treasury Notes, 8.50%, due 4/15/97.............................................. 6,453,803
7,800,000 U.S. Treasury Notes, 6.750%, due 05/31/97............................................ 7,951,125
2,700,000 U.S. Treasury Notes, 8.50%, due 7/15/97.............................................. 2,829,092
7,600,000 U.S. Treasury Notes, 7.375%, due 11/15/97............................................ 7,877,864
300,000 U.S. Treasury Notes, 5.875%, due 2/15/04(b).......................................... 302,250
700,000 U.S. Treasury Notes, 7.25%, due 5/15/04(b)........................................... 768,250
U.S. Treasury Obligations, continued:
$ 4,750,000 U.S. Treasury Notes, 7.25%, due 8/15/04(b)........................................... $ 5,220,540
2,675,000 U.S. Treasury Bonds, 11.625%, due 11/15/04........................................... 3,750,016
8,200,000 U.S. Treasury Bonds, 9.375%, due 2/15/06(b).......................................... 10,414,000
415,000 U.S. Treasury Bonds, 11.25%, due 2/15/15............................................. 652,328
4,500,000 U.S. Treasury Bonds, 7.50%, due 11/15/16(b).......................................... 5,170,775
6,050,000 U.S. Treasury Bonds, 8.125%, due 8/15/19............................................. 7,443,382
--------------
Total U.S. Treasury Obligations (cost $89,192,042)
93,266,635
--------------
Short-Term Holdings (0.7%):
283,488 Dreyfus Cash Management Fund......................................................... 283,488
600,959 Federal Farm Credit Bank Master Note FBO............................................. 600,959
--------------
Total Short-Term Holdings (cost $884,447) 884,447
--------------
Total Investments (100.0%) (cost $115,381,968)
$119,501,692
--------------
--------------
TAX-FREE INCOME FUND
Municipal Bonds (92.9%):
Alabama (0.8%):
$ 2,500,000 Birmingham-Carraway, AL, Health Care Revenue Bonds, Carraway Methodist Corporation,
5.875%, due 8/15/15................................................................. $ 2,571,200
--------------
Alaska (1.5%):
5,000,000 Alaska Housing Finance Corporation, Collateralized Housing Revenue Bonds, Series A,
5.40%, due 12/1/13.................................................................. 4,805,350
--------------
Arizona (8.1%):
2,900,000 Maricopa County, AZ, School District #14, Creighton, General Obligation Bonds,
7.875%, due 7/1/06.................................................................. 3,660,293
3,000,000 Maricopa County, AZ, School District #48, General Obligation Bonds, 9.00%, due
7/1/05.............................................................................. 3,973,860
10,000,000 Phoenix, AZ, General Obligation Bonds, Series A, 7.50%, due 7/1/08................... 12,361,600
</TABLE>
See notes to financial statements.
45
<PAGE>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
TAX-FREE INCOME FUND (continued)
Arizona, continued:
$ 4,000,000 Phoenix, AZ, Street & Highway User Revenue Refunding Bonds, 9.25%, due 7/1/07........ $ 5,556,640
--------------
25,552,393
--------------
California (0.7%):
2,000,000 California Health Facilities Financing Authority, Health Care Revenue Bonds, Hospital
of the Good Samaritan, 7.00%, due 9/1/21............................................ 2,129,300
--------------
Colorado (12.3%):
12,000,000 Arapahoe County, CO, Capital Improvement Transportation Highway Revenue Bonds, Series
E-470, 0.00% (7.50% effective yield), due 8/31/11................................... 4,173,240
10,000,000 Arapahoe County, CO, Capital Improvement Transportation Highway Revenue Bonds, Series
E-470, 0.00% (7.75% effective yield), due 8/31/26................................... 1,069,600
2,925,000 Colorado Housing Finance Authority, Single Family Mortgage Revenue Refunding Bonds,
Series D-11, 8.125%, due 6/1/25..................................................... 3,377,878
1,000,000 Colorado Housing Finance Authority, General Obligation Refunding Bonds, Series A,
7.40%, due 5/1/11................................................................... 1,081,790
1,000,000 Colorado Housing Finance Authority, Single Family Program, Revenue Bonds, Series B2,
7.50%, due 12/1/16.................................................................. 1,135,960
1,575,000 Denver, CO, City & County School District #1, Certificates of Participation, Series
B, 10.00%, due 12/1/01.............................................................. 2,006,267
5,200,000 Denver, CO, Urban Renewal Authority, Tax Increment Revenue Bonds, Series A, 9.125%,
due 9/1/17.......................................................................... 6,092,892
6,280,000 Garfield Pitkin & Eagle Counties, CO, School District #RE1, Roaring Fork, General
Obligation Bonds, 9.00%, due 6/15/04................................................ 8,077,085
Colorado, continued:
$ 2,445,000 Interstate South Metropolitan District, CO, General Obligation Refunding Bonds,
5.75%, due 12/1/09.................................................................. $ 2,410,354
2,500,000 Interstate South Metropolitan District, CO, General Obligation Refunding Bonds,
6.00%, due 12/1/20.................................................................. 2,475,000
950,000 Jefferson County, CO, Single Family Mortgage Revenue Refunding Bonds, Series A,
8.875%, due 10/1/13................................................................. 1,044,202
2,175,000 Larimer County, CO, School District #1, Poudre, General Obligation Refunding Bonds,
8.50%, due 12/15/07................................................................. 2,866,715
1,270,000 Logan County, CO, Single Family Mortgage Revenue Refunding Bonds, Series A, 8.50%,
due 11/1/11......................................................................... 1,382,650
1,520,000 Vail, CO, Single Family Mortgage Revenue Refunding Bonds, Series 1992 A, 8.125%, due
6/1/10.............................................................................. 1,661,193
--------------
38,854,826
--------------
Florida (1.7%):
5,000,000 Florida State Division Board, Finance Department, General Services Revenue Bonds,
Environmental Preservation 2000 Project, Series A, AMBAC insured, 5.70%, due
7/1/09.............................................................................. 5,253,250
--------------
Georgia (0.3%):
1,000,000 Georgia State Municipal Electric Authority Power Revenue Refunding Bonds, Series Z,
5.40% due 1/1/08.................................................................... 1,010,570
--------------
Hawaii (2.1%):
5,000,000 Hawaii State General Obligation Bonds, Series CA, 8.00%, due 1/1/13.................. 6,514,750
--------------
Illinois (3.6%):
5,000,000 Illinois Health Facilities Authority, Health Care Revenue Bonds, OSF Health Care
System Project, 6.00%, due 11/15/10................................................. 5,037,100
</TABLE>
See notes to financial statements.
46
<PAGE>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
TAX-FREE INCOME FUND (continued)
Illinois, continued:
$ 4,350,000 Regional Transportation Authority, IL, Sales Tax Revenue Refunding Bonds, Series D,
FGIC insured, 7.75%, due 6/1/19..................................................... $ 5,698,413
500,000 Whiteside County, IL, Housing Authority, Multi-Family Housing Revenue Bonds, Civic
Plaza II-A Project, guaranteed by HUD Section 8, 6.95%, due 5/1/11.................. 529,220
--------------
11,264,733
--------------
Indiana (0.5%):
1,285,000 Indiana State Office Building Common, Capital Complex Revenue Bonds, Series C, MBIA
insured, 7.40%, due 7/1/15.......................................................... 1,604,939
--------------
Kansas (2.6%):
3,175,000 Kansas State Department of Transportation, Highway Revenue Bonds, Series A, 7.25%,
due 9/1/08.......................................................................... 3,865,880
3,475,000 Kansas State Department of Transportation, Highway Revenue Bonds, Series A, 7.25%,
due 9/1/09.......................................................................... 4,252,914
--------------
8,118,794
--------------
Louisiana (1.5%):
585,000 East Baton Rouge, LA, Mortgage Finance Authority Revenue Bonds, GNMA collateralized,
Series 1988 C, 8.375%, due 2/1/17................................................... 627,377
1,910,000 Louisiana Public Facilities Authority Revenue Bonds, Lutheran Social Services of the
South Project, 7.60%, due 8/15/04................................................... 1,977,576
5,000,000 Rapides Parish, LA, Housing & Mortgage Finance Authority, Capital Appreciation
Residual Revenue Refunding Bonds, Series C, 0.00% (7.45% effective yield), due
7/10/14............................................................................. 1,363,950
Louisiana, continued:
$ 2,900,000 St Bernard Parish, LA, Housing Mortgage Agency, Single Family Mortgage Residual
Revenue Bonds, Series 1992 C, 0.00%, (7.65% effective yield) due 7/10/14............ $ 719,084
--------------
4,687,987
--------------
Maryland (0.2%):
3,000,000 Maryland State Community Development Administration, Multi-Family Housing Revenue
Bonds, Series C, 0.00% (9.10% effective yield, due 5/15/11.......................... 659,880
--------------
Massachusetts (9.3%):
5,325,000 Massachusetts Bay Transportation Authority, General Transportation System Revenue
Refunding Bonds, Series B, 6.20%, due 3/1/16........................................ 5,862,612
9,800,000 Massachusetts Municipal Wholesale Electric Company Power Supply System Revenue Bonds,
MBIA insured, 6.50%, due 7/1/05..................................................... 11,074,196
3,000,000 Massachusetts State College Building Authority, Educational Facilities Revenue
Refunding Bonds, Series A, State guaranteed 7.50%, due 5/1/05....................... 3,588,990
2,500,000 Massachusetts State College Building Authority, Educational Facilities Revenue
Refunding Bonds, Series A, State guaranteed 7.50%, due 5/1/14....................... 3,117,825
5,000,000 Massachusetts State General Obligation Bonds, Series D, FGIC insured, 5.125%, due
11/1/11............................................................................. 4,914,400
775,000 New Bedford, MA, Industrial Development Revenue Bonds, Aerovox Incoporated Project,
7.42%, due 7/1/02................................................................... 802,621
--------------
29,360,644
--------------
Michigan (3.9%):
1,500,000 Dickinson County, MI, Memorial Hospital System Revenue Bonds, 8.125%, due 11/1/24.... 1,598,865
</TABLE>
See notes to financial statements.
47
<PAGE>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
TAX-FREE INCOME FUND (continued)
Michigan, continued:
$ 2,840,000 Grand Ledge MI, Public School District Revenue Refunding Bonds, MBIA insured, 5.35%,
due 5/1/10.......................................................................... $ 2,872,632
3,230,000 Grandville MI, Public School District Revenue Refunding Bonds, FGIC insured, 8.40%,
due 5/1/08.......................................................................... 4,237,792
2,760,000 Wayland, MI, Unified School District, General Obligation Bonds, FGIC insured, 8.00%,
due 5/1/10.......................................................................... 3,558,440
--------------
12,267,729
--------------
Minnesota (1.4%):
1,000,000 Bemidji, MN, Hospital Facilities Revenue Bonds, North Country Health Services
Project, Series 1991 A, 7.00%, due 9/1/11........................................... 1,100,660
1,000,000 Minneapolis, MN, Hospital Revenue Bonds, Children's Medical Center, Series C, 7.00%,
due 12/1/20......................................................................... 1,144,760
2,000,000 Minnesota State Housing Finance Agency, Housing Development Revenue Bonds, Series A,
6.85%, due 2/1/07................................................................... 2,151,020
--------------
4,396,440
--------------
Mississippi (0.9%):
2,000,000 Mississippi Home Corporation, Residual Revenue Capital Appreciation Bonds, Series
1992 II, 0.00% (7.375% effective yield), due 4/15/12................................ 613,940
2,260,000 Mississippi Hospital Equipment & Facilities Authority, Health Care Revenue Bonds,
MBIA insured, 6.00%, due 5/1/13..................................................... 2,355,734
--------------
2,969,674
--------------
Missouri (0.9%):
2,000,000 Ritenour, MO, Consolidated School District, General Obligation Bonds, Series A, FGIC
insured, 9.50%, due 2/1/08.......................................................... 2,820,780
--------------
New Hampshire (0.8%):
$ 2,480,000 New Hampshire Higher Education and Health Facilities Revenue Bonds, New London
Hospital Project, Series 92, 6.00%, due 7/1/07, 7.00%, due 6/1/00................... $ 2,571,661
--------------
New Jersey (1.4%):
3,500,000 New Jersey State, General Obligation Revenue Refunding Bonds, Series D, 8.00%, due
2/15/07............................................................................. 4,460,015
--------------
New Mexico (1.9%):
555,000 Las Cruces, NM, South Central Solid Waste Authority, Environmental Revenue Bonds,
5.55% due 6/1/08.................................................................... 561,371
585,000 Las Cruces, NM, South Central Solid Waste Authority, Environmental Revenue Bonds,
5.65%, due 6/1/09................................................................... 592,201
470,000 Las Cruces, NM, South Central Solid Waste Authority, Environmental Revenue Bonds,
5.75%, due 6/1/10................................................................... 477,910
1,455,000 Las Cruces, NM, South Central Solid Waste Authority, Environmental Revenue Bonds,
6.00% due 6/1/16.................................................................... 1,465,985
2,855,000 Santa Fe, NM, Gross Receipts Tax Revenue Bonds, Series A, AMBAC insured, 5.30%, due
6/1/10.............................................................................. 2,868,761
--------------
5,966,228
--------------
New York (4.9%):
1,500,000 New York State Housing Finance Agency, Health Facilities Revenue Bonds, New York City
Series A, 8.00%, due 11/1/08........................................................ 1,701,015
5,000,000 New York State Thruway Authority, Service Contract Revenue Bonds, Local Highway and
Bridge Project, 6.00%, due 4/1/03................................................... 5,240,950
1,500,000 New York State Thruway Authority, Service Contract Revenue Bonds, Local Highway and
Bridge Project, 5.30%, due 4/1/07................................................... 1,549,635
</TABLE>
See notes to financial statements.
48
<PAGE>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
TAX-FREE INCOME FUND (continued)
New York, continued:
$ 2,530,000 New York, NY, General Obligation Bonds, Series B, 7.30%, due 8/15/10................. $ 2,845,086
1,500,000 New York, NY, General Obligation Bonds, Series B, 7.375%, due 8/15/13................ 1,700,055
2,250,000 New York, NY, General Obligation, Series A, AMBAC Insured, 7.0%, due 8/1/04.......... 2,601,810
--------------
15,638,551
--------------
North Carolina (1.0%):
3,000,000 North Carolina Eastern Municipal Power Revenue Refunding Bonds, Series B, 7.00%, due
1/1/08.............................................................................. 3,376,320
--------------
North Dakota (1.7%):
1,315,000 Fargo, ND, Sales Tax Revenue Refunding Bonds, AMBAC insured, 5.10%, due 1/1/06....... 1,336,382
3,590,000 Ward County, ND, Health Care Facilities Revenue Bonds, St. Joseph Hospital
Corporation Project, 8.875%, due 11/15/14........................................... 4,049,053
--------------
5,385,435
--------------
Ohio (0.5%):
1,385,000 Ohio State Water Development Authority Refunding Revenue Bonds, Improvement in Pure
Water Project, AMBAC insured, 5.70%, due 12/1/08.................................... 1,463,433
--------------
Oregon (1.3%):
2,100,000 Deschutes Valley Water District, OR, Hydroelectric Facilities Revenue Refunding
Bonds, 5.875%, due 9/1/05........................................................... 2,109,828
1,000,000 Lane County, OR, Area Education District, General Obligation Bonds, Lane Community
College Project, 5.30%, due 6/1/07.................................................. 1,039,760
Oregon, continued:
$ 1,000,000 Lane County, OR, Area Education District, General Obligation Bonds, Lane Community
College Project, 5.00%, due 6/1/09.................................................. $ 995,630
--------------
4,145,218
--------------
Pennsylvania (2.3%):
6,715,000 Montgomery County, PA, Industrial Development Authority, Resource Recovery Revenue
Refunding Bonds, Banque Paribas LOC, 7.50%, due 1/1/12.............................. 7,337,548
--------------
Puerto Rico (1.8%):
3,000,000 Commonwealth of Puerto Rico, General Obligation Bonds, MBIA insured, 6.25%, due
7/1/09.............................................................................. 3,371,160
2,000,000 Commonwealth of Puerto Rico, General Obligation Bonds, MBIA insured, 6.25%, due
7/1/11.............................................................................. 2,248,600
--------------
5,619,760
--------------
South Carolina (0.7%):
2,000,000 York County, SC, Water & Sewer Revenue Bonds, 6.625%, due 12/1/19.................... 2,067,920
--------------
South Dakota (1.2%):
3,500,000 South Dakota State Health & Education, Hospital Facilities Revenue Bonds, Huron
Regional Medical Center, 7.30%, due 4/1/16.......................................... 3,796,380
--------------
Texas (10.0%):
775,000 Baytown, TX, Housing Finance Corporation, Single Family Housing Revenue Refunding
Bonds, Series 1992 A, 8.50%, due 9/1/11............................................. 864,908
3,070,000 Beaumont, TX, Housing Finance Corporation Revenue Refunding Bonds, 9.20%, due
3/1/12.............................................................................. 3,422,865
360,000 Corpus Christi, TX, Housing Finance Corporation Revenue Bonds, Series A, MBIA
insured, 7.70%, due 7/1/11.......................................................... 391,032
1,540,000 Crowley, TX, Independent School District, General Obligation Bonds, 5.625%, due
8/1/23.............................................................................. 1,568,952
</TABLE>
See notes to financial statements.
49
<PAGE>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
TAX-FREE INCOME FUND (continued)
Texas, continued:
$ 4,900,000 Dallas, TX, General Obligation Bonds, 4.50%, due 2/15/14............................. $ 4,421,466
2,395,000 Desoto, TX, Housing Fianance Corporation, Multi-Family Housing Revenue Bonds, 7.00%,
due 2/1/25.......................................................................... 2,523,779
345,000 El Paso, TX, Housing Finance Corporation, Single Family Mortgage Revenue Bonds,
Series A, 8.75%, due 10/1/11........................................................ 384,068
520,000 Galveston County, TX, Property Finance Authority, Incorporated, Single Family
Mortgage Revenue Bonds, Series A 8.50%, due 9/1/11.................................. 576,306
1,330,000 Grand Prairie, TX, Housing Finance Corporation, Multi-Family Mortgage Revenue Bonds,
6.875%, due 2/1/25.................................................................. 1,388,347
1,000,000 Harris County, TX, Health Facilities Development Corporation, Hospital Revenue Bonds,
Memorial Hospital System Project, Series A, 5.90%, due 6/1/02....................... 1,039,770
1,000,000 Irving, TX, Hospital Authority, Health Care Revenue Bonds, Irving Healthcare System,
Series B, CGIC insured, 5.60%, due 7/1/07........................................... 1,033,050
3,645,000 Irving, TX, Hospital Authority, Health Care Revenue Bonds, Irving Healthcare System,
Series B, CGIC insured, 5.75%, due 7/1/05........................................... 3,859,545
315,000 Port Arthur, TX, Housing Finance Corporation, Single Family Mortgage Revenue Bonds,
8.70%, due 3/1/12................................................................... 349,470
1,380,000 Tarrant County, TX, Health Facilities Development Corporation, Hospital Revenue
Refunding Bonds, Fort Worth Osteopathic, 7.00%, due 5/15/28......................... 1,415,398
Texas, continued:
$ 2,200,000 Texas State Department of Housing and Community Affairs, Single Family Mortgage
Revenue Bonds, 8.10%, due 9/1/15.................................................... $ 2,474,120
5,540,000 Washington County, TX, Health Facilities Development Corporation Revenue Bonds,
Lutheran Social Services of the South Project, Series 1994, 7.50%, due 8/15/15...... 5,695,008
--------------
31,408,084
--------------
Virginia (2.0%):
1,510,000 Hanover County, VA, Industrial Development Authority, Hospital Revenue Bonds,
Memorial Regional Medical Center Project, 6.50%, due 8/15/09........................ 1,710,921
1,300,000 Hanover County, VA, Industrial Development Authority, Hospital Revenue Bonds,
Memorial Regional Medical Center Project, 6.50%, due 8/15/10........................ 1,474,278
2,000,000 Virginia State Housing Development Authority, Commonwealth Single Family Mortgage
Revenue Bonds, Series H, 6.85%, due 1/1/05.......................................... 2,132,740
1,000,000 Virginia State Housing Development Authority, Commonwealth Single Family Mortgage
Revenue Bonds, Series B, 6.50%, due 1/1/10.......................................... 1,066,430
--------------
6,384,369
--------------
Washington (9.1%):
2,095,000 Island County, WA, School District #206, General Obligation Bonds, South Whidbey,
AMBAC insured, 6.75%, due 12/1/07................................................... 2,436,317
3,920,000 King & Snohomish Counties, WA, School District No. 417, General Obligation Bonds,
Northshore, FGIC insured, 5.60%, due 12/1/11........................................ 4,060,846
</TABLE>
See notes to financial statements.
50
<PAGE>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
TAX-FREE INCOME FUND (continued)
Washington, continued:
$ 2,000,000 King & Snohomish Counties, WA, School District No. 417, General Obligation Bonds,
Northshore, FGIC insured, 6.75%, due 6/1/06......................................... $ 2,312,520
1,000,000 King County, WA, Housing Authority Revenue Refunding Bonds, Series A, 6.70%, due
3/1/15.............................................................................. 1,044,070
1,000,000 King County, WA, Housing Authority Revenue Refunding Bonds, Series A, 6.80%, due
3/1/26.............................................................................. 1,064,650
4,340,000 Tacoma, WA, Sewer Revenue Refunding Bonds, Series B, 8.00%, due 12/1/07.............. 5,524,906
2,615,000 Washington State General Obligation Bonds, Series DD-14 B, 5.00%, due 9/1/13......... 2,520,886
500,000 Washington State Housing Finance Commission, Non-Profit Housing Revenue Bonds, Tacoma
Lutheran Home & Retirement, 7.50%, due 1/1/11....................................... 535,365
1,200,000 Washington State Housing Finance Commission, Non-Profit Housing Revenue Bonds, Judson
Park Project, Series A, 7.00%, due 1/1/25........................................... 1,258,692
1,880,000 Washington State Public Power Supply System, Power Revenue Bonds, Nuclear Project #1,
Series B, 5.60%, due 7/1/07......................................................... 1,930,234
2,535,000 Washington Suburban Sanitation District, General Construction Revenue Bonds, 5.25%,
due 6/1/17.......................................................................... 2,504,427
3,000,000 Yakima County, WA, School District #007, General Obligation Refunding Bonds, MBIA
insured, 6.75%, due 12/1/06......................................................... 3,485,760
--------------
28,678,673
--------------
Total Municipals (cost $281,989,504) 293,142,834
--------------
Short-Term Holdings (7.1%):
$ 9,541,500 Fidelity Tax Exempt Money Market Fund................................................ $ 9,541,500
12,924,450 Federated Tax Free Obligations Money Market Fund..................................... 12,924,450
--------------
Total Short-Term Holdings (cost $22,465,950) 22,465,950
--------------
Total Investments (100.0%) (cost $304,455,454)
$315,608,784
--------------
--------------
COLORADO TAX-FREE FUND
Municipal Bonds (98.7%):
Education Facilities Revenue (0.9%):
$ 500,000 Auraria, CO, Higher Education Center, Parking Facilities Revenue Refunding Bonds, FSA
insured, 5.30%, due 4/1/12.......................................................... $ 501,130
--------------
General Obligations -- Political Subdivisions (8.2%):
1,000,000 Arapahoe County, CO, General Obligation Bonds, Arapahoe Water & Sanitation District,
Series A, First Bank System LOC, 6.00%, due 12/1/10................................. 1,040,820
1,000,000 Highlands Ranch Metropolitan District #4, CO, General Obligation Bonds, Swiss Bank,
NY LOC, 5.80%, due 12/1/07.......................................................... 1,067,250
2,670,000 Interstate South Metropolitan District, CO, Unlimited Tax General Obligation
Refunding Bonds, Colorado National Bank of Denver LOC, 6.00%, due 12/1/20........... 2,643,300
--------------
4,751,370
--------------
General Obligations -- School Districts (29.7%):
1,700,000 Adams County, CO, School District #12, Unlimited Tax General Obligation Bonds, Series
A, MBIA insured, 0.00%, due 12/15/10................................................ 771,715
1,000,000 Arapahoe County, CO, School District #6, Littleton, Unlimited Tax General Obligation
Bonds, Series A, 5.50%, due 12/1/06................................................. 1,056,230
</TABLE>
See notes to financial statements.
51
<PAGE>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
COLORADO TAX-FREE FUND (continued)
General Obligations -- School Districts, continued:
$ 1,225,000 Arapahoe County, CO, School District #6, Littleton, Unlimited Tax General Obligation
Bonds, Series A, 5.30%, due 12/1/12................................................. $ 1,226,715
500,000 Denver, CO, City & County School District #1, General Obligation Bonds, Series A,
6.50%, due 6/1/10................................................................... 568,645
1,000,000 Douglas County, CO, School District #RE 1, General Obligation Bonds, Douglas & Elbert
Counties, Series B, MBIA insured, 6.15%, due 12/15/08............................... 1,091,870
500,000 El Paso County, CO, School District #20, General Obligation Refunding Bonds, Series
1993 B, 8.25%, due 12/15/04......................................................... 602,460
1,000,000 El Paso County, CO, School District #12, Cheyenne Mountain, Unlimited Tax General
Obligation Bonds, 5.65%, due 9/15/15................................................ 1,018,350
1,000,000 El Paso County, CO, School District #12, Cheyenne Mountain, Unlimited Tax General
Obligation Bonds, AMBAC insured, 5.65%, due 9/15/15................................. 1,015,310
500,000 La Plata County, CO, School District #9, Durango, General Obligation Bonds, FGIC
insured, 6.40%, due 11/1/07......................................................... 548,195
3,485,000 Larimer County, CO, School District #1, Poudre, General Obligation Refunding Bonds,
8.50%, due 12/15/08................................................................. 4,619,332
500,000 Larimer, Weld & Boulder Counties, CO, School District #R-2J, Thompson, General
Obligation Bonds, 5.70%, due 12/15/04............................................... 535,145
400,000 Pueblo County, CO, School District #70, General Obligation Bonds, AMBAC insured,
6.00%, due 12/1/05.................................................................. 439,200
General Obligations -- School Districts, continued:
$ 500,000 Pueblo County, CO, School District #70, General Obligation Bonds, AMBAC insured,
6.10%, due 12/1/06.................................................................. $ 550,325
1,000,000 Pueblo County, CO, School District #70, General Obligation Bonds, AMBAC insured,
6.30%, due 12/1/09.................................................................. 1,092,860
800,000 San Miguel County, CO, School District #R-1, General Obligation Bonds, 7.00%, due
12/1/12............................................................................. 927,328
900,000 Summit County, CO, School District #RE 1, General Obligation Bonds, FGIC insured,
6.50%, due 12/1/03.................................................................. 1,015,011
--------------
17,078,691
--------------
General Obligations -- States, Territories (3.7%):
1,000,000 Commonwealth of Puerto Rico, General Obligation Bonds, MBIA insured, 6.25%, due
7/1/08.............................................................................. 1,127,160
1,000,000 Puerto Rico Public Buildings Authority, General Obligation Bonds, Government
Facilities, Series A, AMBAC insured, 5.50%, due 7/1/21.............................. 999,260
--------------
2,126,420
--------------
Health Care Revenue (3.8%):
750,000 Boulder County, CO, Hospital Revenue Bonds, Loungmount United Hospital Project,
5.20%, due 12/1/03.................................................................. 739,403
700,000 Colorado Health Facilities Authority Revenue Refunding Bonds, Rocky Mountain
Adventist Hospital, 6.625%, due 2/1/13.............................................. 716,562
725,000 Logan County, CO, Health Care Facilities Revenue Refunding Bonds, Western Health
Network, Incorporated, MBIA insured, 5.75%, due 1/1/08.............................. 763,468
--------------
2,219,433
--------------
</TABLE>
See notes to financial statements.
52
<PAGE>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
COLORADO TAX-FREE FUND (continued)
Housing Revenue (18.1%):
$ 300,000 Aurora, CO, Housing Authority Finance Corporation, Multi-Family Mortgage Revenue
Refunding Bonds, Mountainview Place, FHA insured, 7.125%, due 9/1/22................ $ 315,972
500,000 Colorado Housing Finance Authority, Single Family Housing Revenue Bonds, Series B-2,
7.50%, due 12/1/16.................................................................. 567,980
1,750,000 Colorado Housing Finance Authority, Single Family Housing Revenue Bonds, Series C-2,
7.45%, due 6/1/17................................................................... 1,966,545
1,650,000 Colorado Housing Finance Authority, Single Family Housing Revenue Bonds, Series D-2,
7.10%, due 6/1/14................................................................... 1,827,507
280,000 Colorado Housing Finance Authority, Single Family Housing Revenue Refunding Bonds,
Series D-1, Remarketed 7/15/94, 6.25%, due 12/1/01.................................. 292,648
2,195,000 Colorado Housing Finance Authority, Single Family Housing Revenue Refunding Bonds,
Series D-1, Remarketed 7/15/94, 8.00%, due 12/1/24.................................. 2,505,944
280,000 Colorado Housing Finance Authority, Single Family Housing Revenue Refunding Bonds,
Series D-II, Remarketed 11/15/94, 6.375%, due 12/1/01............................... 292,673
1,000,000 Fremont County, CO, Single Family Mortgage Revenue Bonds, Series 1979 A, escrowed to
maturity, 8.50%, due 10/1/10........................................................ 1,314,760
2,000,000 Mesa County, CO, Single Family Mortgage Revenue Refunding Bonds, 0.00%, due
12/1/11............................................................................. 839,360
Housing Revenue, continued:
$ 500,000 San Miguel County, CO, Housing Authority, Multi-Family Housing Revenue Bonds,
Telluride Village Apartments Project, Series 1993, 6.30%, due 7/1/13................ $ 499,965
--------------
10,423,354
--------------
Industrial Development Revenue (3.6%):
830,000 Boulder County, CO, Industrial Development Revenue Refunding Bonds, Refining &
Improvements-National Center for the Atmosphere, 7.00%, due 12/1/13................. 901,347
250,000 Summit County, CO, Sports Facilities Revenue Refunding Bonds, Keystone Resorts
Management Project, guaranteed by Ralston Purina Corporation, 7.125%, due 9/1/02.... 272,392
250,000 Summit County, CO, Sports Facilities Revenue Refunding Bonds, Keystone Resorts
Management Project, guaranteed by Ralston Purina Corporation, 7.75%, due 9/1/06..... 287,700
500,000 Summit County, CO, Sports Facilities Revenue Refunding Bonds, Keystone Resorts
Management Project, guaranteed by Ralston Purina Corporation, 7.375%, due 9/1/10.... 582,740
--------------
2,044,179
--------------
Other Revenue (4.7%):
290,000 Black Hawk, CO, Device Tax Revenue Bonds, 6.40%, due 12/1/07......................... 293,909
2,000,000 Jefferson County, CO, Certificate of Participation, MBIA insured, 5.25%, due
12/1/10............................................................................. 2,015,060
360,000 Pueblo, CO, Certificate of Participation, Public Parking-Lease, Purchase & Sublease,
6.90%, due 7/1/15................................................................... 367,657
--------------
2,676,626
--------------
</TABLE>
See notes to financial statements.
53
<PAGE>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
COLORADO TAX-FREE FUND (continued)
Sales Tax Revenue (5.1%):
$ 500,000 City of Fort Collins, CO, Sales & Use Tax Revenue Refunding Bonds, FGIC insured,
5.375%, due 12/1/09................................................................. $ 511,955
1,000,000 Regional Transportation District, CO, Sales Tax Revenue Refunding Bonds, FGIC
insured, 7.25%, due 11/1/00......................................................... 1,133,050
1,300,000 Thornton, CO, Sales & Use Tax Revenue Bonds, Series B, FGIC insured, 5.35%, due
9/1/12.............................................................................. 1,306,851
--------------
2,951,856
--------------
Transportation Revenue (11.8%):
5,000,000 Arapahoe County, CO, Capital Improvements & Transportation, Highway Revenue Bonds,
Series E-470, Remarketed 8/31/95, 0.00%, due 8/31/11................................ 1,738,850
1,490,000 Arapahoe County, CO, Capital Improvements & Transportation, Highway Revenue Bonds,
Series E-470, MBIA insured, Remarketed 8/31/95, 6.15%, due 8/31/26.................. 1,586,925
1,445,000 Denver, CO, City & County Airport Revenue Bonds, Series A, MBIA insured, 5.60%, due
11/15/20............................................................................ 1,446,835
2,000,000 Denver, CO, City & County Airport Revenue Bonds, Series A, MBIA insured, 5.70%, due
11/15/25............................................................................ 2,011,140
--------------
6,783,750
--------------
Utilities Revenue (9.1%):
2,000,000 Colorado Springs, CO, Utilities Revenue Bonds, 6.10%, due 11/15/24................... 2,101,180
500,000 Colorado Water Reserve & Power Development Authority, Clean Water Revenue Bonds,
Series A, 5.60%, due 9/1/04......................................................... 532,135
Utilities Revenue, continued:
$ 500,000 South Adams County, CO, Water and Sanitation District Utilities Revenue Refunding
Bonds, 5.625% due 12/1/10........................................................... $ 504,950
500,000 Squaw Creek Metropolitan District, CO, Utilities Revenue Refunding Bonds, Eagle
County, Berlinger Handels, NY LOC, 5.25%, due 12/1/13............................... 504,720
1,000,000 Upper Eagle Regional Water Authority, CO, Water Revenue Bonds, Water Refining &
Improvement, Eagle County, 6.375%, due 12/1/10...................................... 1,057,060
500,000 Upper Eagle Regional Water Authority, CO, Water Revenue Refunding Bonds, Eagle
County, Series 1994, 6.00%, due 12/1/03............................................. 522,255
--------------
5,222,300
--------------
Total Municipal Bonds (cost $54,447,840) 56,779,109
--------------
Short-Term Holdings (1.3%):
762,216 Federated Tax Free Obligations Money Market Fund (cost $762,216) 762,216
--------------
Total Investments (100.0%) (cost $55,210,056)
$ 57,541,325
--------------
--------------
MINNESOTA TAX-FREE FUND
Municipal Bonds (96.8%):
Education Facilities Revenue (2.5%):
$ 500,000 Minnesota Higher Education Facilities Authority Revenue Bonds, College of St.
Benedict, 3 W, 6.00%, due 3/1/07.................................................... $ 524,125
250,000 Minnesota Higher Education Facilities Authority Revenue Bonds, Macalester College,
Series 4-C, 5.55%, due 3/1/16....................................................... 250,605
--------------
774,730
--------------
General Obligations -- Political Subdivisions (12.9%):
765,000 Bayport, MN, General Obligation Refunding Bonds, 5.75%, due 12/1/16.................. 774,861
</TABLE>
See notes to financial statements.
54
<PAGE>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
MINNESOTA TAX-FREE FUND (continued)
General Obligations -- Political Subdivisions, continued:
$ 210,000 Bloomington, MN, Tax Increment General Obligation Bonds, 9.75%, due 2/1/07........... $ 290,336
1,215,000 Metropolitan Council, MN, Minneapolis-St. Paul Metropolitan Area, Unlimited Tax
General Obligation Bonds, Series A, 5.10%, due 1/1/11............................... 1,208,002
500,000 Minneapolis, MN, Unlimited Tax General Obligation Refunding Bonds, Series A, 5.15%,
due 12/1/09......................................................................... 504,475
1,000,000 Minneapolis, MN, Unlimited Tax General Obligation Refunding Bonds, Series B, 5.20%,
due 3/1/13.......................................................................... 1,001,050
245,000 Waconia, MN, Unlimited Tax General Obligation Water Revenue Bonds, 6.00%, due
6/1/07.............................................................................. 256,429
--------------
4,035,153
--------------
General Obligations -- States, Territories (4.4%):
1,000,000 State of Minnesota, Unlimited Tax General Obligation Bonds, 5.40%, due 8/1/13........ 1,012,760
375,000 State of Minnesota, Unlimited Tax General Obligation Bonds, 5.25%, due 8/1/15........ 375,113
--------------
1,387,873
--------------
General Obligations -- School Districts (26.4%):
1,100,000 Anoka-Hennepin, MN, Independent School District #11, Unlimited Tax General Obligation
Bonds, Series B, 5.50%, due 2/1/12.................................................. 1,118,524
500,000 Chaska, MN, Independent School District #112, General Obligation Bonds, Series B,
6.00%, due 2/1/13................................................................... 528,610
515,000 Faribault, MN, Independent School District #656, General Obligation Bonds, 6.10%, due
6/1/09.............................................................................. 549,623
General Obligations -- School Districts, continued:
$ 1,000,000 Minneapolis, MN, Special School District #1, Unlimited Tax General Obligation Bonds,
FGIC insured, 5.375%, due 2/1/12.................................................... $ 1,007,150
940,000 Minneapolis, MN, Special School District #1, Unlimited Tax General Obligation Bonds,
FGIC insured, 5.375%, due 2/1/14.................................................... 944,860
810,000 Richfield, MN, Independent School District #280, General Obligation Bonds, FGIC
insured, 5.20%, due 2/1/07.......................................................... 823,973
840,000 Spring Lake Park, MN, Independent School District #16, Unlimited Tax General
Obligation Bonds, MBIA insured, 5.25%, due 2/1/11................................... 831,314
1,000,000 St. Anthony, MN, Independent School District #282, Unlimited Tax General Obligation
Bonds, Series B, 5.70%, due 2/1/16.................................................. 1,024,660
720,000 St. Francis, MN, Independent School District #15, General Obligation Refunding Bonds,
Series D, FGIC insured, 5.80%, due 4/1/09........................................... 752,033
1,285,000 West St. Paul, MN, Independent School District #197, General Obligation Bonds,
Capital Appreciation-School Building Project, MBIA insured, 0.00%, due 2/1/08....... 676,617
--------------
8,257,364
--------------
Health Care Revenue (21.9%):
200,000 Bemidji, MN, Hospital Facilities, First Mortgage Revenue Bonds, North Country Health
Services Project, Series 1991 A, 7.00%, due 9/1/11.................................. 220,132
1,000,000 Brainerd, MN, Health Care Facilities Revenue Bonds, Benedictine Health-St. Joseph's
Health Center, Series 1993 E, Connie Lee insured, 6.00%, due 2/15/20................ 1,034,550
</TABLE>
See notes to financial statements.
55
<PAGE>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
MINNESOTA TAX-FREE FUND (continued)
Health Care Revenue, continued:
$ 500,000 Duluth, MN, Economic Development Authority, Health Care Facilities Revenue Bonds,
Benedictine Health System-St. Mary's Medical Center, Series 1993 C, Connie Lee
insured, 6.00%, due 2/15/12......................................................... $ 524,265
500,000 Duluth, MN, Economic Development Authority, Hospital Facilities Revenue Bonds, St.
Luke's Hospital of Duluth, Series B, Connie Lee insured, 6.40%, due 5/1/18.......... 530,490
200,000 Edina, MN, Health Care Facilities, Nursing Home Revenue Bonds, Volunteers of America
Care Project, 7.75%, due 3/1/15..................................................... 205,408
1,000,000 Mankato, MN, Hospital Facilities First Mortgage Revenue Bonds, Immanuel-St. Joseph's
Hospital Project, Series A, 6.30%, due 8/1/22....................................... 1,030,850
500,000 Minneapolis & St. Paul, MN, Housing & Redevelopment Authority, Health Care Revenue
Bonds, Group Health Plan, Incorporated Project, 6.75%, due 12/1/13.................. 536,570
600,000 Minneapolis & St. Paul, MN, Housing & Redevelopment Authority Health Care System,
Health Care Revenue Refunding Bonds, Health One Obligated Group Project, Series A,
MBIA insured, 7.40%, due 8/15/11.................................................... 673,908
500,000 Minneapolis, MN, Health Care Facilities Revenue Bonds, Ebenezer Social Project,
Series A, 7.20%, due 7/1/23......................................................... 511,755
200,000 Minneapolis, MN, Health Care Facilities Revenue Bonds, Fairview Hospital and Health
Care Project, Series A, MBIA insured, 5.25%, due 11/15/19........................... 194,288
Health Care Revenue, continued:
$ 115,000 Red Wing, MN, Health Care Facilities Revenue Refunding Bonds, River Region Obligated
Group, Series 1993 B, 6.35%, due 9/1/07............................................. $ 121,402
250,000 Rochester, MN, Health Care Revenue Bonds, Mayo Medical Center, 8.30%, due 11/15/07... 286,917
1,000,000 St. Cloud, MN, Hospital Facilities Revenue Refunding Bonds, St. Cloud Hospital
Project, Series C, AMBAC insured, 5.30%, due 10/1/20................................ 971,030
--------------
6,841,565
--------------
Housing Revenue (15.9%):
550,000 Minnesota State Housing Finance Agency, Housing Development Revenue Bonds, Series A,
6.85%, due 2/1/07................................................................... 591,530
640,000 Minnesota State Housing Finance Agency, Housing Development Revenue Bonds, 6.25%, due
2/1/20.............................................................................. 649,792
205,000 Minnesota State Housing Finance Agency, Housing Development Revenue Bonds, 7.125%,
due 2/1/20.......................................................................... 208,110
750,000 Minnesota State Housing Finance Agency, Multi-Family Housing Revenue Bonds, 6.375%,
due 2/1/20.......................................................................... 763,260
1,000,000 Minnesota State Housing Finance Agency, Rental Housing Revenue Bonds, Series D, MBIA
insured, 5.90%, due 8/1/15.......................................................... 1,008,040
1,000,000 Minnesota State Housing Finance Agency, Single Family Mortgage Revenue Bonds,
Remarketed 8/12/92, 6.25%, due 1/1/15............................................... 1,032,080
675,000 St. Paul, MN, Housing & Redevelopment Authority, Single Family Mortgage Revenue
Refunding Bonds, FNMA Mortgage Backed Securities Project, 6.25%, due 9/1/14......... 698,078
--------------
4,950,890
--------------
</TABLE>
See notes to financial statements.
56
<PAGE>
NORWEST ADVANTAGE FUNDS -- FIXED INCOME FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
MINNESOTA TAX-FREE FUND (continued)
Other Revenue (0.8%):
$ 250,000 Duluth, MN, Gross Revenue Bonds, Spirit Mountain Recreation Area, Series 1992, 6.40%,
due 2/1/03.......................................................................... $ 261,007
--------------
Pollution Control Revenue (3.1%):
875,000 Minnesota Public Facilities Authority, Water Pollution Control Revenue Bonds, Series
A, 6.50%, due 3/1/14................................................................ 956,261
--------------
Utilities Revenue (8.9%):
1,740,000 Southern Minnesota Municipal Power Agency, Electric Power Revenue Refunding Bonds,
MBIA-IBC insured, 5.75%, due 1/1/18................................................. 1,767,579
1,000,000 Southern Minnesota Municipal Power Agency, Power Supply System Revenue Bonds, 5.75%,
due 1/1/18.......................................................................... 1,006,620
--------------
2,774,199
--------------
Total Municipal Bonds (cost $28,996,015) 30,239,042
--------------
Short-Term Holdings (3.2%):
$ 100,000 Blaine, MN, Industrial Development Revenue Refunding Bonds, SuperValu Store Project,
Wachovia Bank of Atlanta LOC, 4.10% variable rate, due 11/1/13...................... $ 100,000
504,701 Federated Tax Free Obligations Money Market Fund..................................... 504,701
100,000 Hopkins, MN, Industrial Development Revenue Bonds, SuperValu Store Project, Wachovia
Bank LOC, 4.10% variable rate, due 7/1/07........................................... 100,000
100,000 Moorhead, MN, Industrial Development Revenue Refunding Demand Bonds, SuperValu Store
Project, 4.10% variable rate, due 11/1/09........................................... 100,000
200,000 Cottage Grove, MN, Environmental Control Revenue Bonds, Minnesota Mining &
Manufacturing Project, 4.104% variable rate, due 8/1/12............................. 200,000
--------------
Total Short-Term Holdings (cost $1,004,701) 1,004,701
--------------
Total Investments (100.0%) (cost $30,000,716)
$ 31,243,743
--------------
--------------
</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.
(b) Part or all of this investment on loan, see note 5 of notes to financial
statements.
See notes to financial statements.
57
<PAGE>
NORWEST ADVANTAGE FUNDS -- EQUITY FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (NOVEMBER 30, 1995)
<TABLE>
<CAPTION>
INCOME VALUGROWTH SMALL COMPANY CONTRARIAN
STOCK STOCK STOCK STOCK
FUND FUND FUND FUND
------------ ------------ ------------- -----------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value(a)............................... $126,777,387 $168,935,662 $88,926,359 $45,199,629
Cash................................................... -- -- -- --
Collateral for securities loaned(b).................... 2,760,625 48,120,088 7,910,418 3,489,148
Interest, dividends and other receivables.............. 566,121 349,867 114,666 118,936
Receivable for securities sold......................... -- 27,353,465 -- --
Receivable for shares issued........................... 302,311 8,121 5,850 177
Organization costs, net of amortization................ -- -- 20,161 20,161
------------ ------------ ------------- -----------
Total assets............................................ 130,406,444 244,767,203 96,977,454 48,828,051
------------ ------------ ------------- -----------
LIABILITIES:
Payable for securities purchased....................... -- 26,739,633 2,595,893 30,250
Payable for securities loaned(b)....................... 2,760,625 48,120,088 7,910,418 3,489,148
Payable for shares redeemed............................ 9,229 7,465 500 --
Investment advisory, transfer agency and custodial fees
payable.............................................. 94,046 145,442 76,058 33,917
Management fee payable................................. 17,301 20,439 16,528 7,423
Accrued expenses and other payables.................... 13,027 15,537 7,471 5,773
Dividends payable...................................... 246,379 182,952 35,514 39,844
------------ ------------ ------------- -----------
Total liabilities....................................... 3,140,607 75,231,556 10,642,382 3,606,355
------------ ------------ ------------- -----------
NET ASSETS.............................................. $127,265,837 $169,535,647 $86,335,072 $45,221,696
------------ ------------ ------------- -----------
------------ ------------ ------------- -----------
COMPONENTS OF NET ASSETS:
Capital paid in........................................ $104,140,052 $127,006,392 $75,633,067 $41,209,793
Undistributed net investment income.................... 211,471 -- -- 44,279
Unrealized appreciation (depreciation)................. 21,714,666 41,253,654 6,719,697 (356,409 )
Accumulated net realized gains......................... 1,199,648 1,275,601 3,982,308 4,324,033
------------ ------------ ------------- -----------
NET ASSETS.............................................. $127,265,837 $169,535,647 $86,335,072 $45,221,696
------------ ------------ ------------- -----------
------------ ------------ ------------- -----------
NET ASSETS BY CLASS OF SHARES:
A shares............................................... $ 19,462,776 $13,747,810 $ 2,689,045 $ 633,812
B shares............................................... 8,301,152 4,376,170 1,957,878 586,698
I shares............................................... 99,501,909 151,411,667 81,688,149 44,001,186
------------ ------------ ------------- -----------
NET ASSETS.............................................. $127,265,837 $169,535,647 $86,335,072 $45,221,696
------------ ------------ ------------- -----------
------------ ------------ ------------- -----------
SHARES OUTSTANDING:
A shares............................................... 1,495,778 654,576 224,987 55,868
------------ ------------ ------------- -----------
------------ ------------ ------------- -----------
B shares............................................... 642,172 210,927 165,369 52,174
------------ ------------ ------------- -----------
------------ ------------ ------------- -----------
I shares............................................... 7,641,471 7,213,598 6,863,890 3,878,945
------------ ------------ ------------- -----------
------------ ------------ ------------- -----------
NET ASSET VALUE PER SHARE:
A shares............................................... $ 13.01 $ 21.00 $ 11.95 $ 11.34
------------ ------------ ------------- -----------
------------ ------------ ------------- -----------
B shares............................................... $ 12.93 $ 20.75 $ 11.84 $ 11.25
------------ ------------ ------------- -----------
------------ ------------ ------------- -----------
I shares............................................... $ 13.02 $ 20.99 $ 11.90 $ 11.34
------------ ------------ ------------- -----------
------------ ------------ ------------- -----------
(a) Cost of investments................................. $105,062,721 $127,682,008 $82,206,662 $45,556,038
(b) See note 5 of notes to financial statements.
</TABLE>
See notes to financial statements.
58
<PAGE>
NORWEST ADVANTAGE FUNDS -- EQUITY FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (PERIOD ENDED NOVEMBER 30, 1995)
<TABLE>
<CAPTION>
INCOME VALUGROWTH SMALL COMPANY CONTRARIAN
STOCK STOCK STOCK STOCK
FUND FUND FUND FUND
----------- ----------- ------------- ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest and dividend income............................ $ 1,730,044 $1,539,597 $ 546,003 $ 524,460
----------- ----------- ------------- ----------
EXPENSES:
Advisory................................................ 404,450 648,569 376,186 185,683
Management.............................................. 101,112 162,142 75,237 46,421
Transfer agent.......................................... 126,391 202,700 94,046 58,026
Custodian............................................... 9,942 14,661 7,524 4,642
Professional Services................................... 1,815 3,086 1,397 910
Filing.................................................. 21,989 20,207 15,785 10,371
Accounting.............................................. 24,000 25,000 26,000 24,000
Trustees................................................ 925 1,616 712 478
Distribution............................................ 27,906 20,090 7,278 2,926
Amortization of organization costs...................... -- -- 3,270 3,270
Other................................................... 2,859 3,344 1,798 1,622
----------- ----------- ------------- ----------
Total expenses........................................... 721,389 1,101,415 609,233 338,349
Expenses reimbursed and fees waived..................... (193,877) (111,414 ) (151,603) (57,041 )
----------- ----------- ------------- ----------
Net expenses............................................. 527,512 990,001 457,630 281,308
----------- ----------- ------------- ----------
NET INVESTMENT INCOME.................................... 1,202,532 549,596 88,373 243,152
----------- ----------- ------------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Realized gain on investments............................. 25,370 3,630,302 3,256,200 3,144,181
Change in unrealized appreciation (depreciation)......... 12,988,060 14,135,838 4,112,817 (1,218,798)
----------- ----------- ------------- ----------
Net gain on investments.................................. 13,013,430 17,766,140 7,369,017 1,925,383
----------- ----------- ------------- ----------
INCREASE IN NET ASSETS FROM OPERATIONS................... $14,215,962 $18,315,736 $ 7,457,390 $2,168,535
----------- ----------- ------------- ----------
----------- ----------- ------------- ----------
</TABLE>
See notes to financial statements.
59
<PAGE>
NORWEST ADVANTAGE FUNDS -- EQUITY FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
(YEAR ENDED MAY 31, 1995 AND THE PERIOD ENDED NOVEMBER 30, 1995)
<TABLE>
<CAPTION>
INCOME VALUGROWTH SMALL COMPANY CONTRARIAN
STOCK STOCK STOCK STOCK
FUND FUND FUND FUND
------------ ------------ ------------- ------------
<S> <C> <C> <C> <C>
NET ASSETS -- May 31, 1994.............................. $ 27,706,323 $128,201,480 $ 9,710,908 $ 4,767,049
------------ ------------ ------------- ------------
OPERATIONS:
Net investment income.................................. 1,280,421 1,417,415 364,378 295,000
Realized gain (loss) on investments.................... 1,377,855 (752,212 ) 965,922 1,190,947
Change in unrealized appreciation...................... 9,006,486 14,104,085 2,743,762 1,035,192
------------ ------------ ------------- ------------
11,664,762 14,769,288 4,074,062 2,521,139
------------ ------------ ------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income -- A shares...................... (305,844) (122,777 ) (9,212) (3,623)
Net investment income -- B shares...................... (32,792) (21,641 ) (4,231) (1,290)
Net investment income -- I shares...................... (947,266) (1,282,800 ) (352,830) (289,008)
Realized gain on investments -- A shares............... (16,295) -- (5,960) (103)
Realized gain on investments -- B shares............... (1,737) -- (3,839) (43)
Realized gain on investments -- I shares............... (47,216) -- (269,796) (14,518)
------------ ------------ ------------- ------------
(1,351,150) (1,427,218 ) (645,868) (308,585)
------------ ------------ ------------- ------------
CAPITAL SHARE TRANSACTIONS:
Sale of shares -- A shares............................. 2,463,577 2,466,769 1,290,079 416,869
Sale of shares -- B shares............................. 2,186,659 1,561,962 777,480 385,276
Sale of shares -- I shares............................. 40,455,329 35,528,998 46,911,637 49,711,822
Reinvested dividends -- A shares....................... 305,961 109,377 14,637 3,207
Reinvested dividends -- B shares....................... 25,501 17,994 7,961 1,109
Reinvested dividends -- I shares....................... 44,022 70,143 28,272 149,803
Cost of shares repurchased -- A shares................. (2,404,620) (4,478,873 ) (111,737) (31,102)
Cost of shares repurchased -- B shares................. (205,441) (512,240 ) (66,404) (17,607)
Cost of shares repurchased -- I shares................. (4,555,665) (24,011,552 ) (5,248,243) (10,732,262)
------------ ------------ ------------- ------------
38,315,323 10,752,578 43,603,682 39,887,115
------------ ------------ ------------- ------------
NET ASSETS -- May 31, 1995.............................. 76,335,258 152,296,128 56,742,784 46,866,718
------------ ------------ ------------- ------------
OPERATIONS:
Net investment income.................................. 1,202,532 549,596 88,373 243,152
Realized gain on investments........................... 25,370 3,630,302 3,256,200 3,144,181
Change in unrealized appreciation (depreciation)....... 12,988,060 14,135,838 4,112,817 (1,218,798)
------------ ------------ ------------- ------------
14,215,962 18,315,736 7,457,390 2,168,535
------------ ------------ ------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income -- A shares...................... (161,638) (44,460 ) (5,330) (2,906)
Net investment income -- B shares...................... (50,447) (12,383 ) (1,964) (2,115)
Net investment income -- I shares...................... (778,976) (495,657 ) (157,562) (194,931)
Realized gain on investments -- A shares............... -- -- -- --
Realized gain on investments -- B shares............... -- -- -- --
Realized gain on investments -- I shares............... -- -- -- --
------------ ------------ ------------- ------------
(991,061) (552,500 ) (164,856) (199,952)
------------ ------------ ------------- ------------
CAPITAL SHARE TRANSACTIONS:
Sale of shares -- A shares............................. 3,646,777 1,177,167 1,112,358 119,837
Sale of shares -- B shares............................. 4,690,987 652,217 923,927 193,131
Sale of shares -- I shares............................. 34,951,498 13,048,091 24,652,238 7,694,839
Reinvested dividends -- A shares....................... 175,701 55,651 4,974 2,987
Reinvested dividends -- B shares....................... 46,583 13,537 1,781 1,856
Reinvested dividends -- I shares....................... 19,544 33,473 7,273 127,516
Cost of shares repurchased -- A shares................. (772,645) (1,051,064 ) (166,336) (85,893)
Cost of shares repurchased -- B shares................. (289,669) (286,649 ) (46,892) (87,893)
Cost of shares repurchased -- I shares................. (4,763,098) (14,166,140 ) (4,189,569) (11,579,985)
------------ ------------ ------------- ------------
37,705,678 (523,717 ) 22,299,754 (3,613,605)
------------ ------------ ------------- ------------
NET ASSETS -- November 30, 1995......................... $127,265,837 $169,535,647 $86,335,072 $45,221,696
------------ ------------ ------------- ------------
------------ ------------ ------------- ------------
</TABLE>
See notes to financial statements.
60
<PAGE>
NORWEST ADVANTAGE FUNDS -- EQUITY FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Norwest Advantage Funds (the 'Trust') is registered as an open-end
management investment company. The classes of each equity portfolio of the Trust
(each a 'Fund') commenced operations on the following dates:
<TABLE>
<S> <C>
Income Stock Fund (A shares).............................................................. June 1, 1993
Income Stock Fund (B shares).............................................................. August 4, 1993
Income Stock Fund (I shares).............................................................. August 2, 1993
ValuGrowth Stock Fund (A shares).......................................................... January 8, 1988
ValuGrowth Stock Fund (B shares).......................................................... August 5, 1993
ValuGrowth Stock Fund (I shares).......................................................... August 2, 1993
Small Company Stock Fund (A shares)....................................................... December 31, 1993
Small Company Stock Fund (B shares)....................................................... December 31, 1993
Small Company Stock Fund (I shares)....................................................... December 31, 1993
Contrarian Stock Fund (A shares).......................................................... December 31, 1993
Contrarian Stock Fund (B shares).......................................................... December 31, 1993
Contrarian Stock Fund (I shares).......................................................... December 31, 1993
</TABLE>
A shares are sold with a front-end sales charge. B shares are subject to a
contingent deferred sales charge upon redemption and, after a specified number
of years, automatically convert to A shares. I shares are offered exclusively to
fiduciary and other clients of banks, trust companies and their affiliates. I
shares shareholders incur neither a front-end nor contingent deferred sales
charge.
Each Fund is diversified. 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.
Investor A shares, Investor B shares and Trust shares were renamed A shares, B
shares and I shares, respectively. The Funds' financial statements are prepared
in accordance with generally accepted accounting principles. The Trust
Instrument authorizes the issuance of an unlimited number of shares of
beneficial interest without par value.
FINANCIAL STATEMENT PERIODS AND CHANGE OF FISCAL YEAR -- For certain Funds
and 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, ValuGrowth Stock Fund elected to change its fiscal
year end to May 31. Prior to May 31, 1992, the fiscal year end was November 30.
SECURITY VALUATION -- Securities with a maturity of 60 days or less are
valued at amortized cost. Other securities held by the Funds for which market
quotations are readily available are valued using the last reported sales price
provided by independent pricing services. If no sales are reported, the last bid
price is used. In the absence of readily available market quotations, securities
are valued at fair value determined by the Board of Trustees. Unrealized
appreciation and depreciation, based on identified tax cost, as of November 30,
1995 were as follows:
<TABLE>
<CAPTION>
UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION
------------ ------------
<S> <C> <C>
Income Stock Fund.................................................................... $ 22,335,365 $ 621,037
ValuGrowth Stock Fund................................................................ 43,356,191 2,102,537
Small Company Stock Fund............................................................. 9,390,764 2,671,067
Contrarian Stock Fund................................................................ 3,895,880 4,252,289
</TABLE>
Realized gains and losses on investments sold are recorded on the basis of
identified cost.
Security transactions are accounted for on a trade date basis.
The cost basis for Federal income tax purposes is: Income Stock Fund,
$105,063,059; ValuGrowth Stock Fund, $128,080,398; Small Company Stock Fund,
$82,245,235; and Contrarian Stock Fund, $45,556,038.
REPURCHASE AGREEMENTS -- Each Fund may purchase portfolio securities from
financial institutions deemed to be creditworthy by the investment adviser
subject to the seller's agreement to repurchase and the Fund's agreement to
resell such securities. Securities purchased subject to 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 underlying securities 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
61
<PAGE>
NORWEST ADVANTAGE FUNDS -- EQUITY FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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, often based upon the prevailing overnight repurchase rate.
INTEREST AND DIVIDEND INCOME AND DIVIDENDS TO SHAREHOLDERS -- Interest
income is accrued as earned. Dividend income is recorded on the ex-dividend
date. Dividends to shareholders of net investment income are declared and paid
monthly by each Fund. Net capital gain, unless offset by any available capital
loss carryovers, is distributed to shareholders at least annually.
Distributions from net investment income and realized capital gains are
based on their tax basis. The significant difference between financial statement
amounts available for distribution and distributions made in accordance with
income tax regulations are primarily attributable to the deferral of
post-October losses, wash sales and utilization of capital loss carryovers.
SECURITY LOANS -- The Funds receive compensation for lending securities in
the form of fees or by retaining a portion of the interest on the investment
securities or any cash received as collateral. A Fund also continues to receive
interest or dividends on the securities loaned. Security loans are secured by
collateral equal to at least 102%, at all times, of the market value of the
securities loaned plus accrued interest. Gain or loss in the market price of the
securities loaned that may occur during the term of the loan will be reflected
in the value of the Fund.
EXPENSE ALLOCATION -- Each share of each class represents an undivided,
proportionate interest in the Fund. The Funds' class specific expenses include
distribution expenses, if any, transfer agent fees and expenses and certain
other expenses that can be solely attributable to a class.
ORGANIZATION COSTS -- The costs incurred by Small Company Stock Fund and
Contrarian Stock Fund in connection with their organization and registration of
shares, in amounts of $32,694 and $32,694, respectively, have been capitalized
and are being amortized using the straight-line method over a five year period
beginning on the commencement of the Funds' operations. Certain of these costs
were paid by Forum Financial Services, Inc. and will be reimbursed by the
respective Funds.
FEDERAL INCOME TAX -- Each Fund has qualified, and intends to continue to
qualify, as a regulated investment company and distributes all of its taxable
income. Therefore, each Fund is not subject to Federal income tax. As of May 31,
1995 certain of the Funds have capital loss carryovers available to offset
future capital gains as follows:
<TABLE>
<CAPTION>
YEAR OF EXPIRATION
----------------------
2002 2003 TOTAL
-------- ---------- ----------
<S> <C> <C> <C>
ValuGrowth Stock Fund...................................................... $335,384 $1,431,249 $1,766,633
</TABLE>
2. ADVISORY, SERVICING FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The investment adviser of each Equity Fund is Norwest Investment Management,
a part of Norwest Bank Minnesota, N.A. (the 'Adviser'). Norwest Bank Minnesota,
N.A. is a subsidiary of Norwest Corporation. The Adviser receives an advisory
fee from Income Stock Fund, ValuGrowth Stock Fund and Contrarian Stock Fund at
an annual rate of 0.80% of each Fund's average daily net assets for the first
$300 million of net assets of each Fund declining to 0.72% of the average daily
net assets of each Fund in excess of $700 million. The Adviser receives an
advisory fee from Small Company Stock Fund at an annual rate of 1.00% of the
Fund's average daily net assets for the first $300 million of net assets of the
Fund declining to 0.92% of the average daily net assets of the Fund in excess of
$700 million. Pursuant to an agreement among the Adviser, the Trust and Crestone
Capital Management, Inc. (the 'Subadviser'), the Adviser may delegate certain of
its advisory responsibilities to the Subadviser and pay the Subadviser a fee.
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.
Norwest Bank Minnesota, N.A. 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 0.30% of the average daily net assets of each
Fund. Transfer agent fees are based on the average daily net assets attributable
to each class of each Fund's shares.
The manager of the Trust is Forum Financial Services, Inc. ('Forum'), a
registered broker-dealer and a member of the National Association of Securities
Dealers, Inc. Forum receives a management fee for its services from each 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 Income Stock Fund, ValuGrowth Stock Fund, Small Company Stock Fund
and Contrarian Stock Fund were: $947, $1,599, $730, $464.
62
<PAGE>
NORWEST ADVANTAGE FUNDS -- EQUITY FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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.
The Trust has adopted a Distribution Plan (the 'Plan') with respect to B
shares of each Fund pursuant to Rule 12b-1 under the Investment Company Act of
1940. The Plans authorize 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 each Fund attributable to B shares. No Fund
incurred any maintenance fees during the period ended November 30, 1995. The
distribution payments are 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 each Fund for each B 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 for all Equity Funds is
4.50%.
In the event that the Plan is terminated or not continued, the Fund will
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 November 30, 1995 were as follows:
<TABLE>
<S> <C>
Income Stock Fund.................................................................................... $274,914
ValuGrowth Stock Fund................................................................................ 127,090
Small Company Stock Fund............................................................................. 66,333
Contrarian Stock Fund................................................................................ 21,678
</TABLE>
For the period ended November 30, 1995, fees waived and expenses reimbursed
by the Trust's custodian and transfer agent, investment adviser, and manager and
distributor were as follows:
<TABLE>
<CAPTION>
FEES WAIVED EXPENSES
------------------------------------- REIMBURSED
CUSTODIAN AND ----------
TRANSFER AGENT ADVISER FORUM FORUM
-------------- -------- ------- ----------
<S> <C> <C> <C> <C>
Income Stock Fund............................................. $2,359 $171,019 $20,499 $ --
ValuGrowth Stock Fund......................................... 6,554 8,107 96,753 --
Small Company Stock Fund...................................... 1,344 140,625 9,634 --
Contrarian Stock Fund......................................... 966 37,331 18,744 --
</TABLE>
During the period ended November 30, 1995, pursuant to the procedures
adopted by the Board of Trustees, ValuGrowth Stock Fund placed a portion of its
portfolio transactions through Norwest Investment Services, Inc., an affiliate
of the Adviser, for which brokerage commissions of $4,518 were paid.
3. PURCHASES AND SALES OF SECURITIES
Cost of purchases and proceeds from sales (including maturities) of
securities (excluding short-term investments) during the period ended November
30, 1995 were as follows:
<TABLE>
<CAPTION>
PROCEEDS
COST OF FROM
PURCHASES SALES
------------ ------------
<S> <C> <C>
Income Stock Fund................................................................. $ 36,686,000 $ 454,059
ValuGrowth Stock Fund............................................................. 102,086,173 102,940,518
Small Company Stock Fund.......................................................... 56,055,675 35,739,213
Contrarian Stock Fund............................................................. 6,470,975 10,457,551
</TABLE>
63
<PAGE>
NORWEST ADVANTAGE FUNDS -- EQUITY FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. CAPITAL SHARE TRANSACTIONS
Transactions of Fund shares are summarized in the following tables:
INCOME STOCK FUND
<TABLE>
<CAPTION>
A SHARES B SHARES I SHARES
-------------------------- -------------------------- --------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31,
1995 1995 1995 1995 1995 1995
------------ ---------- ------------ ---------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
Shares sold................... 301,804 229,493 390,252 204,693 2,908,740 3,963,479
Shares repurchased............ (64,540) (240,780) (24,167) (19,363) (393,022) (441,581 )
Shares issued on reinvestment
of dividends................ 14,882 30,561 3,919 2,531 1,653 4,370
------------ ---------- ------------ ---------- ------------ ----------
Net increase.................. 252,146 19,274 370,004 187,861 2,517,371 3,526,268
------------ ---------- ------------ ---------- ------------ ----------
------------ ---------- ------------ ---------- ------------ ----------
</TABLE>
VALUGROWTH STOCK FUND
<TABLE>
<CAPTION>
A SHARES B SHARES I SHARES
-------------------------- -------------------------- --------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31,
1995 1995 1995 1995 1995 1995
------------ ---------- ------------ ---------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
Shares sold................... 59,820 140,912 33,431 89,782 663,601 2,048,579
Shares repurchased............ (53,240) (254,529) (14,568) (29,138) (715,607) (1,376,569)
Shares issued on reinvestment
of dividends................ 2,862 6,298 684 1,034 1,724 4,043
------------ ---------- ------------ ---------- ------------ ----------
Net increase (decrease)....... 9,442 (107,319) 19,547 61,678 (50,282) 676,053
------------ ---------- ------------ ---------- ------------ ----------
------------ ---------- ------------ ---------- ------------ ----------
</TABLE>
SMALL COMPANY STOCK FUND
<TABLE>
<CAPTION>
A SHARES B SHARES I SHARES
-------------------------- -------------------------- --------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31,
1995 1995 1995 1995 1995 1995
------------ ---------- ------------ ---------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
Shares sold................... 93,965 127,352 78,142 77,049 2,095,306 4,701,475
Shares repurchased............ (14,149) (10,985) (4,073) (6,562) (354,428) (526,044 )
Shares issued on reinvestment
of dividends................ 425 1,473 150 808 633 2,864
------------ ---------- ------------ ---------- ------------ ----------
Net increase.................. 80,241 117,840 74,219 71,295 1,741,511 4,178,295
------------ ---------- ------------ ---------- ------------ ----------
------------ ---------- ------------ ---------- ------------ ----------
</TABLE>
CONTRARIAN STOCK FUND
<TABLE>
<CAPTION>
A SHARES B SHARES I SHARES
-------------------------- -------------------------- --------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31,
1995 1995 1995 1995 1995 1995
------------ ---------- ------------ ---------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
Shares sold................... 10,603 40,379 17,077 36,555 683,169 4,757,781
Shares repurchased............ (7,474) (3,000) (7,756) (1,670) (1,019,684) (1,036,666)
Shares issued on reinvestment
of dividends................ 265 310 165 108 11,352 14,330
------------ ---------- ------------ ---------- ------------ ----------
Net increase (decrease)....... 3,394 37,689 9,486 34,993 (325,163) 3,735,445
------------ ---------- ------------ ---------- ------------ ----------
------------ ---------- ------------ ---------- ------------ ----------
</TABLE>
64
<PAGE>
NORWEST ADVANTAGE FUNDS -- EQUITY FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. PORTFOLIO SECURITIES LOANED
The following funds had loaned securities as of November 30, 1995:
<TABLE>
<CAPTION>
VALUE OF COLLATERAL
SECURITIES LOANED VALUE
----------------- -----------
<S> <C> <C>
Income Stock Fund............................................................... $ 2,581,250 $ 2,760,625
ValuGrowth Stock Fund........................................................... 44,451,384 48,120,088
Small Company Stock Fund........................................................ 7,517,956 7,910,418
Contrarian Stock Fund........................................................... 3,294,025 3,489,148
----------------- -----------
Net Total....................................................................... $57,844,615 $62,280,279
----------------- -----------
----------------- -----------
</TABLE>
Collateral is comprised of various securities including time deposits,
commercial paper, corporate bonds and repurchase agreements.
65
<PAGE>
NORWEST ADVANTAGE FUNDS -- EQUITY FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING DURING THE PERIOD
<TABLE>
<CAPTION>
RATIOS TO
NET
REALIZED ENDING AVERAGE
AND NET NET ASSETS
BEGINNING UNREALIZED DIVIDENDS DISTRIBUTIONS ASSET -----------
NET ASSET NET GAIN (LOSS) FROM NET FROM NET VALUE
VALUE PER INVESTMENT ON INVESTMENT REALIZED PER
SHARE INCOME INVESTMENTS INCOME GAINS SHARE EXPENSES(A)
--------- ---------- ----------- ---------- ------------- ------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
INCOME STOCK FUND
A SHARES
Period Ended November 30,
1995...................... $ 11.49 $ 0.14 $ 1.50 ($0.12) $-- $13.01 1.00%(b)
Year Ended May 31,
1995........................ 9.53 0.27 1.97 (0.27) ($ 0.01) 11.49 1.00%
1994........................ 10.00 0.28 (0.47) (0.28) -- 9.53 0.67%
B SHARES
Period Ended November 30,
1995...................... 11.45 0.11 1.47 (0.10) -- 12.93 1.75%(b)
Year Ended May 31, 1995..... 9.51 0.21 1.96 (0.22) (0.01) 11.45 1.75%
Period Ended May 31,
1994(c)..................... 9.66 0.20 (0.13) (0.22) -- 9.51 1.65%(b)
I SHARES
Period Ended November 30,
1995...................... 11.50 0.14 1.50 (0.12) -- 13.02 1.00%(b)
Year Ended May 31, 1995..... 9.54 0.27 1.97 (0.27) (0.01) 11.50 1.00%
Period Ended May 31,
1994(c)................... 9.61 0.25 (0.06) (0.26) -- 9.54 0.86%(b)
VALUGROWTH STOCK FUND
A SHARES
Period Ended November 30,
1995...................... 18.82 0.07 2.18 (0.07) -- 21.00 1.20%(b)
Year Ended May 31,
1995........................ 17.17 0.17 1.66 (0.18) -- 18.82 1.20%
1994........................ 17.27 0.10 0.19 (0.17) (0.22) 17.17 1.20%
1993........................ 16.30 0.17 1.34 (0.17) (0.37) 17.27 1.20%
Six Months Ended May 31,
1992(d)................... 14.48 0.09 1.83 (0.10) -- 16.30 1.19%(b)
Year Ended November 30,
1991........................ 11.67 0.18 2.82 (0.19) -- 14.48 1.19%
1990........................ 12.67 0.21 (0.55) (0.21) (0.45) 11.67 1.20%
B SHARES
Period Ended November 30,
1995...................... 18.65 0.01 2.15 (0.06) -- 20.75 1.95%(b)
Year Ended May 31, 1995..... 17.10 0.07 1.61 (0.13) -- 18.65 1.95%
Period Ended May 31,
1994(c)................... 17.12 0.07 0.23 (0.10) (0.22) 17.10 1.95%(b)
I SHARES
Period Ended November 30,
1995...................... 18.80 0.07 2.19 (0.07) -- 20.99 1.20%(b)
Year Ended May 31, 1995..... 17.16 0.18 1.64 (0.18) -- 18.80 1.20%
Period Ended May 31,
1994(c)................... 16.91 0.13 0.46 (0.12) (0.22) 17.16 1.20%(b)
SMALL COMPANY STOCK FUND
A SHARES
Period Ended November 30,
1995...................... 10.64 0.01 1.32 (0.02) -- 11.95 1.20%(b)
Year Ended May 31, 1995..... 9.84 0.12 0.87 (0.11) (0.08) 10.64 0.53%
Period Ended May 31,
1994(c)................... 10.00 0.07 (0.15) (0.08) -- 9.84 0.22%(b)
B SHARES
Period Ended November 30,
1995...................... 10.56 (0.01) 1.30 (0.01) -- 11.84 1.95%(b)
Year Ended May 31, 1995..... 9.82 0.07 0.84 (0.09) (0.08) 10.56 1.27%
Period Ended May 31,
1994(c)................... 10.00 0.06 (0.17) (0.07) -- 9.82 0.98%(b)
I SHARES
Period Ended November 30,
1995...................... 10.59 0.02 1.32 (0.03) -- 11.90 1.20%(b)
Year Ended May 31, 1995..... 9.80 0.12 0.87 (0.12) (0.08) 10.59 0.52%
Period Ended May 31,
1994(c)................... 10.00 0.08 (0.20) (0.08) -- 9.80 0.20%(b)
CONTRARIAN STOCK FUND
A SHARES
Period Ended November 30,
1995...................... 10.90 0.06 0.43 (0.05) -- 11.34 1.20%(b)
Year Ended May 31, 1995..... 9.71 0.11 1.19 (0.11) (0.003) 10.90 1.01%
Period Ended May 31,
1994(c)................... 10.00 0.06 (0.28) (0.07) -- 9.71 0.61%(b)
B SHARES
Period Ended November 30,
1995...................... 10.84 0.02 0.43 (0.04) -- 11.25 1.95%(b)
Year Ended May 31, 1995..... 9.69 0.07 1.16 (0.08) (0.003) 10.84 1.78%
Period Ended May 31,
1994(c)..................... 10.00 0.05 (0.30) (0.06) -- 9.69 1.28%(b)
I SHARES
Period Ended November 30,
1995...................... 10.90 0.06 0.43 (0.05) -- 11.34 1.20%(b)
Year Ended May 31, 1995..... 9.71 0.11 1.19 (0.11) (0.003) 10.90 1.12%
Period Ended May 31,
1994(c)..................... 10.00 0.07 (0.29) (0.07) -- 9.71 0.62%(b)
<CAPTION>
NORWEST ADVANTAGE FUNDS -- EQUITY FUNDS NOVEMBER 30, 1995
- ----------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING DURING THE PERIOD
NET
ASSETS
AT END
OF
NET PORTFOLIO PERIOD
INVESTMENT TOTAL TURNOVER (000'S
INCOME RETURN RATE OMITTED)
---------- ------ -------- --------
<S> <C> <C> <C> <C>
INCOME STOCK FUND
A SHARES
Period Ended November 30,
1995...................... 2.39%(b) 30.35%(b) 0.47% $ 19,463
Year Ended May 31,
1995........................ 2.66% 23.87% 8.93% 14,292
1994........................ 3.15% (1.92%) 57.50% 11,668
B SHARES
Period Ended November 30,
1995...................... 1.70%(b) 29.36%(b) 0.47% 8,301
Year Ended May 31, 1995..... 2.08% 23.12% 8.93% 3,115
Period Ended May 31,
1994(c)..................... 2.37%(b) 0.87%(b) 57.50% 802
I SHARES
Period Ended November 30,
1995...................... 2.42%(b) 30.32%(b) 0.47% 99,502
Year Ended May 31, 1995..... 2.77% 23.85% 8.93% 58,927
Period Ended May 31,
1994(c)................... 3.20%(b) 1.73%(b) 51.50% 15,237
VALUGROWTH STOCK FUND
A SHARES
Period Ended November 30,
1995...................... 0.70%(b) 25.13%(b) 63.62% 13,748
Year Ended May 31,
1995........................ 1.01% 10.72% 63.82% 12,138
1994........................ 1.06% 1.68% 86.07% 12,922
1993........................ 1.02% 9.32% 57.34% 109,669
Six Months Ended May 31,
1992(d)................... 1.34%(b) 26.46%(b) 29.50% 68,659
Year Ended November 30,
1991........................ 1.57% 25.84% 31.17% 4,853
1990........................ 1.88% (2.91%) 38.67% 750
B SHARES
Period Ended November 30,
1995...................... (0.05%)(b) 24.32%(b) 63.62% 4,376
Year Ended May 31, 1995..... 0.28% 9.88% 63.82% 3,569
Period Ended May 31,
1994(c)................... 0.25%(b) 2.36%(b) 86.07% 2,218
I SHARES
Period Ended November 30,
1995...................... 0.70%(b) 25.28%(b) 63.62% 151,412
Year Ended May 31, 1995..... 1.02% 10.67% 63.82% 136,589
Period Ended May 31,
1994(c)................... 0.92%(b) 2.99%(b) 86.07% 113,061
SMALL COMPANY STOCK FUND
A SHARES
Period Ended November 30,
1995...................... 0.26%(b) 26.42%(b) 52.12% 2,689
Year Ended May 31, 1995..... 1.14% 10.19% 68.09% 1,540
Period Ended May 31,
1994(c)................... 1.95%(b) (1.98%)(b) 14.98% 265
B SHARES
Period Ended November 30,
1995...................... (0.49%)(b) 25.79%(b) 52.12% 1,958
Year Ended May 31, 1995..... 0.38% 9.31% 68.09% 963
Period Ended May 31,
1994(c)................... 1.27%(b) (2.77%)(b) 14.98% 195
I SHARES
Period Ended November 30,
1995...................... 0.25%(b) 26.55%(b) 52.12% 81,688
Year Ended May 31, 1995..... 1.14% 10.13% 68.09% 54,240
Period Ended May 31,
1994(c)................... 2.03%(b) (2.93%)(b) 14.98% 9,251
CONTRARIAN STOCK FUND
A SHARES
Period Ended November 30,
1995...................... 1.05%(b) 9.12%(b) 15.67% 634
Year Ended May 31, 1995..... 1.05% 13.52% 30.32% 572
Period Ended May 31,
1994(c)................... 1.77%(b) (5.35%)(b) 2.67% 144
B SHARES
Period Ended November 30,
1995...................... 0.32%(b) 8.40%(b) 15.67% 587
Year Ended May 31, 1995..... 0.35% 12.78% 30.32% 463
Period Ended May 31,
1994(c)..................... 1.14%(b) (6.05%)(b) 2.67% 75
I SHARES
Period Ended November 30,
1995...................... 1.06%(b) 9.11%(b) 15.67% 44,001
Year Ended May 31, 1995..... 0.91% 13.52% 30.32% 45,832
Period Ended May 31,
1994(c)..................... 1.82%(b) (5.35%)(b) 2.67% 4,548
</TABLE>
See notes to financial statements.
66
<PAGE>
NORWEST ADVANTAGE FUNDS -- EQUITY FUNDS NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING DURING THE PERIOD
(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>
SIX MONTHS
PERIOD ENDED YEAR ENDED MAY 31, ENDED MAY
NOVEMBER 30, ----------------------------- 31,
1995(b) 1995 1994 1993 1992(b)(d)
------------ ---- ----- ---- -----------
<S> <C> <C> <C> <C> <C>
Income Stock Fund
A shares.................................................... 1.43% 1.51% 1.83% -- --
B shares.................................................... 2.58% 2.82% 2.99%(b) -- --
I shares.................................................... 1.35% 1.47% 1.62%(b) -- --
ValuGrowth Stock Fund
A shares.................................................... 1.42% 1.43% 1.43% 1.42% 1.64%
B shares.................................................... 2.65% 2.51% 2.55%(b) -- --
I shares.................................................... 1.32% 1.33% 1.39%(b) -- --
Small Company Stock Fund
A shares.................................................... 1.78% 2.32% 10.66%(b) -- --
B shares.................................................... 3.37% 3.56% 20.87%(b) -- --
I shares.................................................... 1.58% 1.82% 4.33%(b) -- --
Contrarian Stock Fund
A shares.................................................... 1.57% 2.96% 7.22%(b) -- --
B shares.................................................... 3.32% 4.92% 9.09%(b) -- --
I shares.................................................... 1.43% 1.57% 3.52%(b) -- --
<CAPTION>
NORWEST ADVANTAGE FUNDS -- EQUITY FUNDS
- ---------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING DURING THE PERIOD
(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:
YEAR ENDED
NOVEMBER 30,
----------------
1991 1990
---- -----
<S> <C> <C>
Income Stock Fund
A shares.................................................... -- --
B shares.................................................... -- --
I shares.................................................... -- --
ValuGrowth Stock Fund
A shares.................................................... 4.33% 11.73%
B shares.................................................... -- --
I shares.................................................... -- --
Small Company Stock Fund
A shares.................................................... -- --
B shares.................................................... -- --
I shares.................................................... -- --
Contrarian Stock Fund
A shares.................................................... -- --
B shares.................................................... -- --
I 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.
See notes to financial statements.
67
<PAGE>
NORWEST ADVANTAGE FUNDS -- EQUITY FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
INCOME STOCK FUND
Common Stock (95.9%):
Basic Materials (5.4%):
50,000 E.I. du Pont de Nemours & Company.................................................... $ 3,325,000
102,000 Morton International, Incorporated................................................... 3,531,750
--------------
6,856,750
--------------
Capital Goods (13.2%):
28,000 Emerson Electric Company............................................................. 2,184,000
49,000 General Electric Company............................................................. 3,295,251
92,000 Honeywell, Incorporated.............................................................. 4,381,500
43,000 United Technologies Corporation...................................................... 4,031,250
97,000 WMX Technologies, Incorporated....................................................... 2,861,500
--------------
16,753,501
--------------
Consumer Cyclical (15.0%):
24,000 Dayton Hudson Corporation............................................................ 1,743,000
80,000 Deluxe Corporation................................................................... 2,210,000
71,000 Dun & Bradstreet Corporation......................................................... 4,428,625
56,000 Eastman Kodak Company................................................................ 3,808,000
44,000 J.C. Penney Company, Incorporated.................................................... 2,062,500
36,000 May Department Stores Company........................................................ 1,570,500
50,000 McDonald's Corporation............................................................... 2,231,250
22,000 Sears Roebuck & Company.............................................................. 866,250
--------------
18,920,125
--------------
Consumer Staples (17.7%):
80,000 American Brands, Incorporated........................................................ 3,340,000
23,000 American Home Products Corporation................................................... 2,098,750
29,000 Johnson & Johnson.................................................................... 2,512,125
35,000 Merck & Company, Incorporated........................................................ 2,165,625
41,000 PepsiCo, Incorporated................................................................ 2,265,250
35,000 Pfizer, Incorporated................................................................. 2,030,000
27,000 Philip Morris Companies, Incorporated................................................ 2,369,250
36,000 Procter & Gamble Company............................................................. 3,109,500
80,000 Sara Lee Corporation................................................................. 2,580,000
--------------
22,470,500
--------------
Energy (12.6%):
26,000 Atlantic Richfield Company........................................................... 2,817,750
59,000 Chevron Corporation.................................................................. 2,913,125
Energy, continued:
36,000 Exxon Corporation.................................................................... $ 2,785,500
21,000 Mobil Corporation.................................................................... 2,191,875
14,000 Royal Dutch Petroleum Company........................................................ 1,797,250
55,000 Schlumberger, Ltd.................................................................... 3,492,500
--------------
15,998,000
--------------
Financial (10.5%):
19,467 Allstate Corporation................................................................. 798,147
55,000 American Express Company............................................................. 2,337,500
57,000 American General Corporation......................................................... 1,930,875
50,000 First Bank System, Incorporated(b)................................................... 2,581,250
37,000 J.P. Morgan & Company, Incorporated.................................................. 2,904,500
35,000 Transamerica Corporation............................................................. 2,681,875
--------------
13,234,147
--------------
Miscellaneous (3.4%):
66,000 Minnesota Mining & Manufacturing Company............................................. 4,323,000
--------------
Technology (8.2%):
81,000 AT&T Corporation..................................................................... 5,346,000
61,000 Hewlett-Packard Company.............................................................. 5,055,375
--------------
10,401,375
--------------
Utilities (9.9%):
67,000 Consolidated Natural Gas Company..................................................... 2,973,125
21,000 FPL Group, Incorporated.............................................................. 910,875
74,000 GTE Corporation...................................................................... 3,154,250
65,000 Pacific Gas & Electric Company....................................................... 1,787,500
68,000 Public Service Enterprise Group, Incorporated........................................ 2,014,500
45,000 Texas Utilities Company.............................................................. 1,732,500
--------------
12,572,750
--------------
Total Common Stock (cost $99,815,481) 121,530,148
--------------
Cash Management Accounts (4.1%):
Short-Term Holdings (4.1%):
2,572,717 Dreyfus Cash Management Fund......................................................... 2,572,717
2,674,522 Provident Institutional Funds, TempFund Fund......................................... 2,674,522
--------------
5,247,239
--------------
Total Cash Management Accounts
(cost $5,247,239) 5,247,239
--------------
Total Investments (100.0%)
(cost $105,062,721) $126,777,387
--------------
--------------
</TABLE>
See notes to financial statements.
68
<PAGE>
NORWEST ADVANTAGE FUNDS -- EQUITY FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
VALUGROWTH STOCK FUND
Common Stocks (99.8%):
Basic Materials (9.2%):
57,300 Great Lakes Chemical Corporation(b).................................................. $ 4,075,463
74,800 Hercules, Incorporated............................................................... 4,104,650
106,800 Morton International, Incorporated................................................... 3,697,950
119,900 Witco Corporation.................................................................... 3,686,925
--------------
15,564,988
--------------
Capital Goods (13.7%):
47,700 Emerson Electric Company............................................................. 3,720,600
63,400 General Electric Company............................................................. 4,263,650
86,300 Honeywell, Incorporated.............................................................. 4,110,038
72,800 Thermo Electron Corporation(a)(b).................................................... 3,603,600
117,700 Wabash National Corporation(b)....................................................... 3,295,600
93,200 York International Corporation....................................................... 4,170,700
--------------
23,164,188
--------------
Consumer Cyclical (15.7%):
95,600 Black & Decker Corporation........................................................... 3,573,050
89,900 Home Depot, Incorporated(b).......................................................... 3,989,312
112,900 Lowe's Companies, Incorporated....................................................... 3,556,350
151,100 Newell Company....................................................................... 3,985,262
191,000 Sensormatic Electronics Corporation(b)............................................... 4,130,375
147,000 Singer Company....................................................................... 3,858,750
56,100 Walt Disney Company(b)............................................................... 3,373,012
--------------
26,466,111
--------------
Consumer Staples (20.2%):
49,500 American Home Products Corporation................................................... 4,516,876
87,016 Columbia HCA Healthcare Corporation.................................................. 4,492,202
104,500 Crown Cork & Seal Company, Incorporated(a)(b)........................................ 4,375,937
83,800 Duracell International, Incorporated(b).............................................. 4,441,400
85,100 Gillette Company..................................................................... 4,414,563
49,600 Procter & Gamble Company............................................................. 4,284,200
154,700 Sonoco Products Company.............................................................. 3,867,500
48,900 The Coca-Cola Company................................................................ 3,704,175
--------------
34,096,853
--------------
Energy (6.2%):
31,000 Mobil Corporation.................................................................... $ 3,235,625
115,900 Repsol, S.A. ADR(b).................................................................. 3,665,337
28,485 Royal Dutch Petroleum Company(b)..................................................... 3,656,761
--------------
10,557,723
--------------
Financial (7.5%):
48,250 American International Group, Incorporated........................................... 4,330,438
89,800 State Street Boston Corporation...................................................... 4,041,000
89,700 SunAmerica, Incorporated............................................................. 4,227,112
--------------
12,598,550
--------------
Miscellaneous (2.6%):
100,000 Alco Standard Corporation(b)......................................................... 4,350,000
--------------
Technology (18.4%):
64,700 First Data Corporation............................................................... 4,593,700
85,700 General Motors Corporation, Class E(b)............................................... 4,327,850
55,000 Intel Corporation.................................................................... 3,348,125
165,100 L.M. Ericsson Telephone Company, ADR(b).............................................. 3,921,125
39,000 Microsoft Corporation(a)............................................................. 3,397,875
60,600 Motorola, Incorporated............................................................... 3,711,750
92,300 Silicon Graphics, Incorporated(a)(b)................................................. 3,368,950
32,400 Xerox Corporation(b)................................................................. 4,442,850
--------------
31,112,225
--------------
Transportation & Services (2.0%):
50,400 Conrail, Incorporated................................................................ 3,521,700
--------------
Utilities (4.3%):
83,500 Consolidated Natural Gas Company..................................................... 3,705,312
146,700 DPL, Incorporated.................................................................... 3,520,800
--------------
7,226,112
--------------
Total Common Stock (cost $127,404,796) 168,658,450
--------------
Short-Term Holdings (0.2%):
140,181 Dreyfus Cash Management Fund......................................................... 140,181
137,031 Provident Institutional Funds, TempFund Fund......................................... 137,031
--------------
Total Short-Term Holdings (cost $277,212) 277,212
--------------
Total Investments (100.0%)
(cost $127,682,008) $168,935,662
--------------
--------------
</TABLE>
See notes to financial statements.
69
<PAGE>
NORWEST ADVANTAGE FUNDS -- EQUITY FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
SMALL COMPANY STOCK FUND
Common Stocks (91.8%):
Basic Materials (11.6%):
81,600 Astec Industries, Incorporated(a).................................................... $ 887,400
66,100 Chemed Corporation, Series 00007911.................................................. 2,569,638
54,500 OM Group, Incorporated............................................................... 1,669,063
123,000 Quanex Corporation................................................................... 2,413,875
38,900 Synalloy Corporation................................................................. 792,587
121,000 Tetra Technologies, Incorporated(a).................................................. 2,011,625
--------------
10,344,188
--------------
Capital Goods (6.5%):
57,100 AGCO Corporation(b).................................................................. 2,462,438
72,100 Baldor Electric Company.............................................................. 1,631,263
147,400 Insituform Technologies,
Class A(a)......................................................................... 1,713,525
--------------
5,807,226
--------------
Consumer Cyclical (10.8%):
58,200 Consolidated Graphics, Incorporated(a)............................................... 1,440,450
115,100 Friedman's, Incorporated, Class A(a)................................................. 2,676,075
120,000 NHP, Incorporated(a)................................................................. 1,980,000
131,800 Paxar Corporation(a)................................................................. 1,696,925
36,800 Sodak Gaming, Incorporated(a)........................................................ 717,600
197,900 Sun Television and Appliances, Incorporated.......................................... 1,088,450
--------------
9,599,500
--------------
Consumer Staples (11.3%):
50,000 BMC Industries, Incorporated......................................................... 837,500
89,700 Coventry Corporation(a).............................................................. 1,760,363
71,700 Lincare Holdings, Incorporated(a)(b)................................................. 1,917,975
68,000 MediSense, Incorporated(a)........................................................... 1,751,000
56,700 Sierra Health Services, Incorporated(a).............................................. 1,856,925
65,200 Verifone, Incorporated(a)............................................................ 1,907,100
--------------
10,030,863
--------------
Energy (10.5%):
72,500 Cairn Energy USA, Incorporated(a).................................................... 915,313
38,200 Landmark Graphics Corporation(a)..................................................... 764,000
113,300 Neuvo Energy Company(a).............................................................. 2,520,925
133,850 Parker & Parsley Petroleum Company, Delaware(b)...................................... 2,509,687
21,450 Pride Petroleum Services, Incorporated(a)............................................ 209,137
74,300 Tejas Power Corporation(a)........................................................... 594,400
Energy, continued:
111,200 United Meridian Corporation(a)....................................................... $ 1,848,700
--------------
9,362,162
--------------
Financial (10.1%):
25,900 Cullen/Frost Bankers, Incorporated................................................... 1,314,425
58,700 Felcor Suite Hotels, Incorporated.................................................... 1,702,300
47,400 IPC Information Systems, Incorporated(a)............................................. 687,300
38,400 Mountain Parks Financial Corporation(a).............................................. 859,200
115,500 RFS Hotel Investors, Incorporated.................................................... 1,746,938
101,100 Roosevelt Financial Group, Incorporated(b)........................................... 1,718,700
101,100 Sunstone Hotel Investors, Incorporated............................................... 909,900
--------------
8,938,763
--------------
Miscellaneous (4.5%):
119,050 Sheldahl, Incorporated(a)............................................................ 2,321,475
55,300 Tech-Sym Corporation(a).............................................................. 1,652,087
--------------
3,973,562
--------------
Technology (20.7%):
26,450 Benchmark Electronics, Incorporated(a)............................................... 644,719
105,700 Colonial Data Technologies Corporation(a)(b)......................................... 1,677,988
40,500 Cornerstone Imaging, Incorporated(a)................................................. 713,812
118,500 Dynatech Corporation(a).............................................................. 1,762,687
14,600 Electroglas, Incorporated(a)......................................................... 868,700
114,300 Gasonics International Corporation(a)................................................ 2,028,825
76,400 InterVoice, Incorporated(a).......................................................... 1,671,250
16,100 Kent Electronics Corporation(a)...................................................... 873,426
30,700 Kulicke & Soffa Industries, Incorporated(a).......................................... 871,112
140,800 LTX Corporation(a)................................................................... 1,742,400
100,600 Smartflex Systems, Incorporated(a)................................................... 1,773,075
22,200 StorMedia, Incorporated(a)........................................................... 870,619
84,700 Zilog, Incorporated(a)............................................................... 2,953,912
--------------
18,452,525
--------------
Transportation Services (5.7%):
146,000 Covenant Transportation, Incorporated(a)............................................. 1,934,500
77,200 Kirby Corporation(a)................................................................. 1,379,950
103,000 Swift Transportation, Incorporated(a)................................................ 1,725,250
--------------
5,039,700
--------------
</TABLE>
See notes to financial statements.
70
<PAGE>
NORWEST ADVANTAGE FUNDS -- EQUITY FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
SMALL COMPANY STOCK FUND (continued)
Utilities (.1%):
2,000 Lincoln Telecommunications Company................................................... $ 39,000
--------------
Total Common Stocks (cost $74,867,792) 81,587,489
--------------
Short-Term Holdings (8.2%):
1,174,971 Dreyfus Treasury Cash Management Fund................................................ 1,174,971
3,816,790 Federal Farm Credit Bank Master Note FBO............................................. 3,816,790
1,175,959 Federated U.S. Short Term Government Fund............................................ 1,175,959
1,171,150 Provident Institutional Funds, Fed Fund.............................................. 1,171,150
--------------
Total Short-Term Holdings (cost $7,338,870) 7,338,870
--------------
Total Investments (100.0%)
(cost $82,206,662) $88,926,359
--------------
--------------
CONTRARIAN STOCK FUND
Common Stock (90.9%):
Basic Materials (39.0%):
64,000 Alcan Aluminum, Ltd.................................................................. $ 2,120,000
71,000 Alumax(a)(b)......................................................................... 2,360,750
205,000 Armco, Incorporated(a)............................................................... 1,178,750
16,900 Asarco, Incorporated................................................................. 597,838
111,000 Bethlehem Steel Corporation(a)(b).................................................... 1,554,000
4,400 Consolidated Papers, Incorporated.................................................... 272,800
40,000 Cyprus Amax Minerals Company(b)...................................................... 1,100,000
19,000 Dravo Corporation(a)................................................................. 228,000
67,306 Inland Steel Industries.............................................................. 1,758,369
141,100 LTV Corporation(a)................................................................... 2,045,950
24,100 Pittston Minerals Group.............................................................. 319,325
89,000 USX-Marathon Group, Incorporated..................................................... 1,635,375
59,000 USX-US Steel Group, Incorporated..................................................... 1,924,875
20,000 Wellman, Incorporated................................................................ 512,500
--------------
17,608,532
--------------
Capital Goods (18.4%):
26,500 Aar Corporation...................................................................... 486,938
36,700 Ampco Pittsburgh Corporation......................................................... 344,062
11,000 BW/IP Holding, Incorporated.......................................................... 169,125
12,500 Bearings, Incorporated............................................................... 479,688
55,000 CBI Industries, Incorporated......................................................... 1,849,375
22,500 Commercial Intertech Corporation..................................................... 399,375
Capital Goods, continued:
49,000 Gerber Scientific, Incorporated...................................................... $ 833,000
10,000 Giddings & Lewis, Incorporated....................................................... 157,500
5,500 Goulds Pumps, Incorporated........................................................... 129,937
6,300 Keystone International, Incorporated................................................. 129,150
87,000 McDermott International, Incorporated................................................ 1,576,875
11,600 Parker Hannifin Corporation.......................................................... 426,300
10,300 Timkin Company....................................................................... 415,862
30,000 Trinova Corporation.................................................................. 922,500
--------------
8,319,687
--------------
Consumer Cyclical (9.5%):
25,600 Albany International Corporation..................................................... 547,200
33,000 Bombay Company, Incorporated(a)...................................................... 222,750
17,700 Cone Mills Corporation(a)............................................................ 199,125
69,800 Hartmarx Corporation(a).............................................................. 314,100
36,000 The Limited, Incorporated............................................................ 643,500
50,000 Manpower, Incorporated............................................................... 1,337,500
44,000 Ryder System, Incorporated........................................................... 1,050,500
--------------
4,314,675
--------------
Consumer Staples (1.2%):
40,000 Chiquita Brands International........................................................ 535,000
--------------
Energy (1.6%):
10,200 Phillips Petroleum Company........................................................... 339,150
53,500 Rowan Companies, Incorporated(a)..................................................... 401,250
--------------
740,400
--------------
Financial (10.4%):
27,000 Aetna Life & Casualty Company........................................................ 1,981,125
34,000 Alexander & Alexander Services, Incorporated......................................... 743,750
16,200 Chubb Corporation.................................................................... 1,575,450
105,000 Mesabi Trust......................................................................... 380,625
--------------
4,680,950
--------------
Technology (5.3%):
11,700 Augat, Incorporated..................................................................... 201,825
53,600 Data General Corporation(a)............................................................. 649,900
16,000 International Business Machines Corporation............................................ 1,546,000
----------
2,397,725
----------
Transportation & Services (5.5%):
38,075 Aviall.................................................................................. 323,637
26,500 London and Overseas Freighters Limited, ADR............................................. 321,313
63,000 OMI Corporation(a)...................................................................... 385,875
27,360 Overseas Shipholding Group.............................................................. 547,200
14,000 Swift Transportation Company, Incorporated(a)........................................... 234,500
</TABLE>
See notes to financial statements.
71
<PAGE>
NORWEST ADVANTAGE FUNDS -- EQUITY FUNDS NOVEMBER 30, 1995
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Face Security
Amount Description Value
- ---------- ---------------------- --------------
<S> <C> <C>
CONTRARIAN STOCK FUND (continued)
Transportation & Services,
continued:
14,000 Werner Enterprises,
Incorporated........................................................................... $ 297,500
32,000 Yellow Corporation...................................................................... 384,000
----------
2,494,025
----------
Total Common Stock (cost $41,447,403) 41,090,994
----------
Short-term Holdings (9.1%):
1,232,091 Dreyfus Cash Management Fund........................................................ -1,232,091
2,172,472 Federal Farm Credit Bank Master Note FBO............................................ 2,172,472
704,072 Institutional Funds Group TempFund Fund............................................. 704,072
----------
Total Short-term Holdings (cost $4,108,635) 4,108,635
----------
Total Investments (100.0%)
(cost $45,556,038) $45,199,629
----------
----------
</TABLE>
(a) Non-income producing security.
(b) Part or all of this investment on loan, see
note 5 of notes to financial statements.
See notes to financial statements.
72
