<PAGE>
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NORWEST ADVANTAGE FUNDS-SM-
SEMI-ANNUAL REPORT
NOVEMBER 30, 1996
MONEY MARKET FUNDS
--------------
CASH INVESTMENT FUND
U.S. GOVERNMENT FUND
TREASURY FUND
READY CASH INVESTMENT FUND
MUNICIPAL MONEY MARKET FUND
[LOGO] NORWEST ADVANTAGE FUNDS-SM-
Not FDIC Insured
<PAGE>
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TABLE OF CONTENTS NOVEMBER 30, 1996
<TABLE>
<S> <C>
A MESSAGE TO OUR SHAREHOLDERS.......................................................................... 1
FINANCIAL STATEMENTS OF NORWEST ADVANTAGE 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
Portfolios of Investments
Cash Investment Fund..................................................................... 10
U.S. Government Fund..................................................................... 13
Treasury Fund............................................................................ 16
Ready Cash Investment Fund............................................................... 16
Municipal Money Market Fund.............................................................. 20
</TABLE>
[LOGO]
<PAGE>
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A MESSAGE TO OUR SHAREHOLDERS NOVEMBER 30, 1996
January 13, 1997
Dear Shareholders:
We are pleased to present the Semi-Annual Report for the
period ended November 30, 1996, for Norwest Advantage
Funds. This report includes the five Norwest Advantage
Funds money market portfolios. The twenty-three Norwest
Advantage Funds stock and bond portfolios are reported
separately.
Norwest Advantage Funds experienced significant growth
over the last year with assets increasing from one year
ago by 35% to over $13.4 billion as of November 30, 1996.
This success is the result of the continued positive
performance of the Norwest Advantage Funds and the
confidence and support of the shareholders of the funds.
The money markets were relatively stable over the past six
months, providing investors with a quieter year than they
experienced in the volatile stock and bond markets.
Between June 1 and November 30, 1996, interest rates on
the benchmark 90-day U.S. Treasury bill fell only 90 basis
points.
Norwest Advantage Funds offers a wide range of stock and
bond funds to help you achieve the diversification you
want for your investment portfolio. If you have any
questions or would like additional information about
Norwest Advantage Funds, please call 800-338-1348 or
612-667-8833 (press 1). We appreciate your decision to
invest with Norwest Advantage Funds.
Sincerely,
[SIG]
John Y. Keffer
CHAIRMAN, NORWEST ADVANTAGE
FUNDS
[LOGO]
1
<PAGE>
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STATEMENTS OF ASSETS AND LIABILITIES NOVEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
MUNICIPAL
CASH INVESTMENT U.S. GOVERNMENT TREASURY READY CASH MONEY MARKET
FUND FUND FUND INVESTMENT FUND FUND
--------------- --------------- ------------ --------------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value(a) (Note 2).......... $2,039,390,701 $1,348,507,206 $841,748,197 $1,739,323,536 $683,831,675
Repurchase Agreements (Note 2)............. - 413,147,046 - - -
Cash....................................... 582,621 15,072 982 214,191 875,057
Interest and other receivables............. 12,078,787 3,042,256 6,106,786 9,726,103 6,396,947
Receivable for securities sold............. - 5,043,333 113,899,125 - 23,277,324
Receivable for principal paydowns.......... 20,254 - - 15,879 -
--------------- --------------- ------------ --------------- -------------
TOTAL ASSETS................................. 2,052,072,363 1,769,754,913 961,755,090 1,749,279,709 714,381,003
--------------- --------------- ------------ --------------- -------------
LIABILITIES:
Payable for securities purchased........... - 10,000,000 - - 9,139,823
Accrued advisory fees (Note 3)............. 234,107 208,433 128,395 491,789 162,748
Accrued management and administrative fees
(Note 3)................................. 117,122 140,492 43,117 142,150 37,993
Accrued transfer agency fees (Note 3)...... 421,341 375,248 197,364 196,487 34,271
Accrued custodial fees (Note 3)............ 18,002 15,863 9,193 15,697 6,845
Accrued expenses and other liabilities..... 52,904 154,991 37,020 55,776 38,563
Dividends payable.......................... 8,754,340 7,418,617 3,891,011 7,454,855 1,854,176
--------------- --------------- ------------ --------------- -------------
TOTAL LIABILITIES............................ 9,597,816 18,313,644 4,306,100 8,356,754 11,274,419
--------------- --------------- ------------ --------------- -------------
NET ASSETS................................... $2,042,474,547 $1,751,441,269 $957,448,990 $1,740,922,955 $703,106,584
--------------- --------------- ------------ --------------- -------------
--------------- --------------- ------------ --------------- -------------
COMPONENTS OF NET ASSETS:
Paid-In Capital............................ $2,044,134,098 $1,751,712,978 $957,418,152 $1,740,983,744 $703,200,738
Accumulated net realized gain (loss) on
investments sold......................... (1,659,551) (271,709) 30,838 (60,789) (94,154)
--------------- --------------- ------------ --------------- -------------
NET ASSETS................................... $2,042,474,547 $1,751,441,269 $957,448,990 $1,740,922,955 $703,106,584
--------------- --------------- ------------ --------------- -------------
--------------- --------------- ------------ --------------- -------------
NET ASSETS BY SHARE CLASS:
Single class funds......................... $2,042,474,547 $1,751,441,269 $957,448,990 $ - $ -
Investor Shares............................ - - - 546,334,742 61,454,343
Exchange Shares............................ - - - 154,934 -
Institutional Shares....................... - - - 1,194,433,279 641,652,241
--------------- --------------- ------------ --------------- -------------
NET ASSETS................................... $2,042,474,547 $1,751,441,269 $957,448,990 $1,740,922,955 $703,106,584
--------------- --------------- ------------ --------------- -------------
--------------- --------------- ------------ --------------- -------------
SHARES OF BENEFICIAL INTEREST; NO PAR VALUE:
Single class funds......................... 2,044,206,598 1,751,812,978 957,418,152 - -
--------------- --------------- ------------ --------------- -------------
--------------- --------------- ------------ --------------- -------------
Investor Shares............................ - - - 546,353,402 61,469,231
--------------- --------------- ------------ --------------- -------------
--------------- --------------- ------------ --------------- -------------
Exchange Shares............................ - - - 154,968 -
--------------- --------------- ------------ --------------- -------------
--------------- --------------- ------------ --------------- -------------
Institutional Shares....................... - - - 1,194,487,726 641,741,308
--------------- --------------- ------------ --------------- -------------
--------------- --------------- ------------ --------------- -------------
NET ASSET VALUE PER SHARE:
All share classes.......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------------- --------------- ------------ --------------- -------------
--------------- --------------- ------------ --------------- -------------
(a) Cost of investments...................... $2,039,390,701 $1,761,654,252 $841,748,197 $1,739,323,536 $683,831,675
</TABLE>
[LOGO]
See Notes to Financial Statements.
2
<PAGE>
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STATEMENTS OF OPERATIONS (SIX MONTHS ENDED NOVEMBER 30, 1996) (UNAUDITED)
<TABLE>
<CAPTION>
CASH U.S. READY CASH MUNICIPAL
INVESTMENT GOVERNMENT TREASURY INVESTMENT MONEY MARKET
FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income............................ $51,527,437 $47,157,401 $24,255,040 $46,699,337 $12,401,980
------------ ------------ ------------ ------------ ------------
EXPENSES:
Investment advisory fee (Note 3)........... 1,321,043 1,252,943 760,096 2,897,909 1,175,505
Management and Administrative fees (Note
3)....................................... 592,215 563,840 358,487 1,685,851 684,821
Transfer agent fee (Note 3):
Single class funds....................... 2,334,365 2,192,490 1,165,725 - -
Investor Shares.......................... - - - 629,178 76,657
Exchange Shares.......................... - - - 383 -
Institutional Shares..................... - - - 591,101 311,747
Custodian fees (Note 3).................... 100,895 95,220 54,150 91,813 41,762
Legal fees (Note 3)........................ 23,492 66,135 11,982 22,815 9,476
Registration fees.......................... 40,830 59,382 44,516 48,720 39,731
Accounting fee (Note 3).................... 30,000 30,000 27,000 42,000 45,000
Auditing fee............................... 8,451 15,075 7,139 6,351 6,726
Trustees' fees............................. 15,753 15,323 7,819 14,380 6,019
Distribution and maintenance fees --
Exchange Shares (Note 3)................. - - - 1,531 -
Miscellaneous.............................. 50,761 73,523 25,416 49,594 37,834
------------ ------------ ------------ ------------ ------------
Total expenses............................... 4,517,805 4,363,931 2,462,330 6,081,626 2,435,278
Fees waived voluntarily (Note 3)........... (54,449) - (325,468) (1,199,784) (840,702)
------------ ------------ ------------ ------------ ------------
Net expenses................................. 4,463,356 4,363,931 2,136,862 4,881,842 1,594,576
------------ ------------ ------------ ------------ ------------
NET INVESTMENT INCOME........................ 47,064,081 42,793,470 22,118,178 41,817,495 10,807,404
------------ ------------ ------------ ------------ ------------
NET REALIZED GAIN (LOSS) ON INVESTMENTS
SOLD....................................... 17,402 520 (71,658) 6,086 (2,490)
------------ ------------ ------------ ------------ ------------
NET CHANGE IN UNREALIZED APPRECIATION ON
INVESTMENTS................................ - - - - 1,200,000
------------ ------------ ------------ ------------ ------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS................................. $47,081,483 $42,793,990 $22,046,520 $41,823,581 $12,004,914
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
</TABLE>
[LOGO]
See Notes to Financial Statements.
3
<PAGE>
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STATEMENTS OF CHANGES IN NET ASSETS (YEAR ENDED MAY 31, 1996 AND THE SIX
MONTHS ENDED NOVEMBER 30, 1996)
<TABLE>
<CAPTION>
CASH INVESTMENT U.S. GOVERNMENT READY CASH MUNICIPAL MONEY
FUND FUND TREASURY FUND INVESTMENT FUND MARKET FUND
----------------- --------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C>
NET ASSETS -- MAY 31, 1995......... $ 1,464,303,901 $1,159,421,353 $ 661,097,567 $ 775,006,153 $ 326,377,056
OPERATIONS:
Net investment income............ 89,052,204 77,507,593 37,457,600 61,215,967 18,883,349
Net realized gain (loss) on
investments.................... 490,336 254,457 284,133 2,735 -
----------------- --------------- ---------------- ---------------- ----------------
89,542,540 77,762,050 37,741,733 61,218,702 18,883,349
----------------- --------------- ---------------- ---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income -- Single
class funds.................... (89,052,204) (77,507,593) (37,457,600) - -
Net investment income -- Investor
Shares......................... - - - (19,184,887) (1,883,550)
Net investment income -- Exchange
Shares......................... - - - (5,918) -
Net investment income --
Institutional Shares........... - - - (42,025,162) (16,999,799)
----------------- --------------- ---------------- ---------------- ----------------
(89,052,204) (77,507,593) (37,457,600) (61,215,967) (18,883,349)
----------------- --------------- ---------------- ---------------- ----------------
CAPITAL SHARE TRANSACTIONS:(a)
Sale of shares -- Single class
funds.......................... 15,533,974,038 8,689,610,881 5,417,106,078 - -
Sale of shares -- Investor
Shares......................... - - - 972,589,473 123,308,710
Sale of shares -- Exchange
Shares......................... - - - 10,333 -
Sale of shares -- Institutional
Shares......................... - - - 2,418,720,030 2,165,513,879
Reinvestment of dividends --
Single class funds............. 73,206,956 17,484,474 16,539,657 - -
Reinvestment of dividends --
Investor Shares................ - - - 20,298,681 2,020,283
Reinvestment of dividends --
Exchange Shares................ - - - 6,534 -
Reinvestment of dividends --
Institutional Shares........... - - - 17,499 19,032,125
Cost of repurchasing shares --
Single class funds............. (15,332,426,295) (8,217,050,414) (5,292,757,198) - -
Cost of repurchasing shares --
Investor Shares................ - - - (787,613,307) (115,732,342)
Cost of repurchasing shares --
Exchange Shares................ - - - (47,612) -
Cost of repurchasing shares --
Institutional Shares........... - - - (1,844,727,840) (1,871,062,880)
----------------- --------------- ---------------- ---------------- ----------------
274,754,699 490,044,941 140,888,537 779,253,791 323,079,775
----------------- --------------- ---------------- ---------------- ----------------
NET ASSETS -- MAY 31, 1996......... 1,739,548,936 1,649,720,751 802,270,237 1,554,262,679 649,456,831
----------------- --------------- ---------------- ---------------- ----------------
OPERATIONS:
Net investment income............ 47,064,081 42,793,470 22,118,178 41,817,495 10,807,404
Net realized gain (loss) on
investments.................... 17,402 520 (71,658) 6,086 (2,490)
Net change in unrealized
appreciation on investments.... - - - - 1,200,000
----------------- --------------- ---------------- ---------------- ----------------
47,081,483 42,793,990 22,046,520 41,823,581 12,004,914
----------------- --------------- ---------------- ---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income -- Single
class funds.................... (47,064,081) (42,793,470) (22,118,178) - -
Net investment income -- Investor
Shares......................... - - - (11,891,490) (913,348)
Net investment income -- Exchange
Shares......................... - - - (6,119) -
Net investment income --
Institutional Shares........... - - - (29,919,886) (9,894,056)
----------------- --------------- ---------------- ---------------- ----------------
(47,064,081) (42,793,470) (22,118,178) (41,817,495) (10,807,404)
----------------- --------------- ---------------- ---------------- ----------------
CAPITAL SHARE TRANSACTIONS:(a)
Sale of shares -- Single class
funds.......................... 6,963,193,976 3,910,982,403 2,112,756,985 - -
Sale of shares -- Investor
Shares......................... - - - 415,375,557 59,205,731
Sale of shares -- Exchange
Shares......................... - - - 503,629 -
Sale of shares -- Institutional
Shares......................... - - - 1,495,246,849 942,260,092
Reinvestment of dividends --
Single class funds............. 31,140,966 6,616,274 6,388,700 - -
Reinvestment of dividends --
Investor Shares................ - - - 9,659,855 756,715
Reinvestment of dividends --
Exchange Shares................ - - - 5,664 -
Reinvestment of dividends --
Institutional Shares........... - - - 24,753 1,459,601
Cost of repurchasing shares --
Single class funds............. (6,691,426,733) (3,815,878,679) (1,963,895,274) - -
Cost of repurchasing shares --
Investor Shares................ - - - (352,581,446) (55,528,891)
Cost of repurchasing shares --
Exchange Shares................ - - - (483,247) -
Cost of repurchasing shares --
Institutional Shares........... - - - (1,381,097,424) (894,501,005)
Capital withdrawal from
Adviser........................ - - - - (1,200,000)
----------------- --------------- ---------------- ---------------- ----------------
302,908,209 101,719,998 155,250,411 186,654,190 $ 52,452,243
----------------- --------------- ---------------- ---------------- ----------------
NET ASSETS -- NOVEMBER 30, 1996
(UNAUDITED)...................... $ 2,042,474,547 $1,751,441,269 $ 957,448,990 $ 1,740,922,955 $ 703,106,584
----------------- --------------- ---------------- ---------------- ----------------
----------------- --------------- ---------------- ---------------- ----------------
</TABLE>
(a) Share transactions at net asset value of $1.00 per share.
[LOGO]
See Notes to Financial Statements.
4
<PAGE>
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NOTES TO FINANCIAL STATEMENTS NOVEMBER 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 1. ORGANIZATION
Norwest Advantage Funds (the "Trust") is registered as an open-end management
investment company. The Trust currently has twenty-eight separate investment
portfolios. These financial statements relate to the five money market
investment portfolios of the Trust (each a "Fund"), each of which is a
diversified portfolio. The Funds (and classes thereof) commenced operations on
the following dates:
<TABLE>
<S> <C>
Cash Investment Fund.................................................................. October 14, 1987
U.S. Government Fund.................................................................. November 16, 1987
Treasury Fund......................................................................... December 3, 1990
Ready Cash Investment Fund (Investor Shares).......................................... January 20, 1988
Ready Cash Investment Fund (Exchange Shares).......................................... May 9, 1994
Ready Cash Investment Fund (Institutional Shares)..................................... January 4, 1994
Municipal Money Market Fund (Investor Shares)......................................... January 7, 1988
Municipal Money Market Fund (Institutional Shares).................................... August 3, 1993
</TABLE>
Each share of each class represents an undivided, proportionate interest in a
Fund. The Trust Instrument authorizes the issuance, by each Fund, of an
unlimited number of shares of beneficial interest without par value. Exchange
Shares are sold only through the exchange privilege available to shareholders of
B Shares of the various fixed income and equity funds of the Trust and are
subject to a contingent deferred sales charge upon redemption. Shareholders of
Institutional Shares and Investor Shares incur no sales charge. The difference
between these two classes is the minimum investment required and the level of
transfer agent expenses.
Prior to July 31, 1993, the Trust's operation was conducted as Prime Value
Funds, Inc., a Maryland corporation. On October 1, 1995, the Trust changed its
name from Norwest Funds to Norwest Advantage Funds.
FINANCIAL STATEMENT PERIODS AND CHANGE OF FISCAL YEAR-For certain share classes,
the earliest period presented in the financial highlights reflects operations
for the period beginning with the commencement date above through the date of
its then fiscal year end, as noted. Otherwise, a full year is presented.
Effective May 31, 1992, the Funds elected to change their fiscal year end to May
31. Prior to May 31, 1992, the fiscal year end was November 30.
- --------------------------------------------------------------------------------
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Funds' financial statements are prepared in accordance with generally
accepted accounting principles which requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of increase and decrease in net assets from
operations during the period. Actual results could differ from those estimates
and are expected to be immaterial to the net assets of the Funds.
SECURITY VALUATION-The Funds value securities utilizing the amortized cost
method pursuant to Rule 2a-7 under the Investment Company Act of 1940. Under
this method all investments purchased at a discount or premium are valued by
accreting or amortizing, respectively, the difference between the purchase price
and maturity value of the issue over the period to maturity.
INTEREST INCOME AND DIVIDENDS TO SHAREHOLDERS-Interest income is accrued as
earned. Dividends to shareholders of net investment income are declared daily
and paid monthly by each Fund. Net capital gain, if any, is distributed at least
annually to shareholders.
Distributions from net investment income and realized capital gain are based on
amounts calculated in accordance with applicable income tax regulations. Any
differences between financial statement amounts available for distribution and
distributions made in accordance with income tax regulations are primarily
attributable to certain income tax calculations being based on an October 31
year end and the utilization of capital loss carryovers.
EXPENSE ALLOCATION-Expenses are allocated in accordance with procedures adopted
by the Board of Trustees (the "Board"). Certain expenses are allocated to the
various share classes on the basis of usage of services or contractual
agreements. The Funds' class specific expenses include distribution expenses, if
any, transfer agent fees and expenses, and certain other expenses that are
solely attributable to a class.
[LOGO]
5
<PAGE>
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NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOVEMBER 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
REALIZED GAINS AND LOSSES-Security transactions are accounted for on a trade
date basis. Realized gains and losses on investments sold are recorded on the
basis of identified cost.
FEDERAL INCOME TAX-Each Fund has qualified, and intends to continue to qualify,
as a regulated investment company and distribute all of its taxable income.
Therefore, each Fund is not subject to Federal income tax. As of November 30,
1996, certain of the Funds had capital loss carryovers available to offset
future capital gains as follows:
<TABLE>
<CAPTION>
YEAR OF EXPIRATION
--------------------
2003 2004 TOTAL
--------- --------- ---------
<S> <C> <C> <C>
Cash Investment Fund............................................. $1,676,770 $ - $1,676,770
U.S.Government Fund.............................................. 272,447 - 272,447
Ready Cash Investment Fund....................................... 64,592 - 64,592
Municipal Money Market Fund...................................... 72,404 15,350 87,754
</TABLE>
REPURCHASE AGREEMENTS-Each Fund may purchase portfolio securities from financial
institutions deemed to be creditworthy by the Fund's investment adviser subject
to the seller's agreement to repurchase and the Fund's agreement to resell the
securities. Securities received as collateral in connection with the repurchase
agreements are maintained by the Trust and must have, at all times, an aggregate
market value greater than or equal to the repurchase price plus accrued
interest. If the value of the collateral falls below the value of the repurchase
price plus accrued interest, the Funds require the seller to deposit additional
collateral by the next business day. In the event that the seller under the
agreement defaults on its repurchase obligation or fails to deposit sufficient
collateral, the Funds have the contractual right, subject to the requirements of
applicable bankruptcy and insolvency laws, to sell the underlying securities at
market value and may claim any resulting loss from the seller. For certain
demand agreements, there is no agreed upon repurchase date and interest payments
are calculated daily based on the agreed upon repurchase rate.
VARIABLE RATE SECURITIES-For variable rate securities, the interest rate varies
to reflect current market conditions. The rate shown is the effective rate on
November 30, 1996. The maturity date shown represents the final maturity. For
purposes of Rule 2a-7, securities generally are deemed to have a maturity of the
date noted on the face of the instrument, except that certain variable rate
government and short-term corporate securities are deemed to have a maturity at
the date of the next readjustment of the interest rate and certain securities
with demand features are deemed to have a maturity of the longer of the demand
period or the period remaining until the next readjustment of the interest rate.
- --------------------------------------------------------------------------------
NOTE 3. ADVISORY, SERVICING FEES AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISER-The investment adviser of each Fund is Norwest Investment
Management (the "Adviser"), a part of Norwest Bank Minnesota, N.A. ("Norwest").
Norwest is a subsidiary of Norwest Corporation. The Adviser receives an advisory
fee from Cash Investment Fund, U.S. Government Fund, Treasury Fund and Ready
Cash Investment Fund at annual rates of 0.20%, 0.20%, 0.20% and 0.40%,
respectively, of the average daily net assets for the first $300 million of net
assets of each Fund, declining to 0.12%, 0.12%, 0.12% and 0.32%, respectively,
of the average daily net assets of each Fund's net assets in excess of $700
million. The Adviser receives an advisory fee from Municipal Money Market Fund
at an annual rate of 0.35% of the average daily net assets for the first $500
million of net assets of the Fund, declining to 0.30% of the average daily net
assets of the Fund's net assets in excess of $1 billion.
The Adviser has agreed to reimburse each Fund for certain operating expenses
(exclusive of interest, taxes, brokerage fees, fees and other expenses paid
pursuant to any distribution plan and organization expenses, all to the extent
permitted by applicable state law or regulation) which in any year exceed the
limits prescribed by any state in which the Fund's shares are qualified for
sale. The Funds' annual expenses are estimated and accrued daily, and any
related reimbursements are made monthly by the Adviser.
During the year ended May 31, 1995, the Municipal Money Market Fund obtained an
$8,500,000 non-transferable Letter of Credit ("LOC") from Trust Company Bank
which supports the payment of principal and interest on the Orange County Bond,
due to expire on June 30, 1996, held by the Fund. The Adviser has agreed to
reimburse Trust Company Bank for any payments made by it to the Fund. As of May
31, 1996, no payments were received from Trust Company Bank in connection with
this LOC. On June 12, 1996, the Orange County Bond was called at par.
MANAGEMENT, ADMINISTRATIVE AND DISTRIBUTION SERVICES-As manager of the Trust and
distributor of its shares, Forum Financial Services, Inc. ("Forum"), a
registered broker-dealer and a member of the National Association of Securities
Dealers, Inc. and Forum Administrative Services, LLC ("FAS") provide
administrative services to the Funds. For their services, Forum and FAS receive
management and administrative fees, respectively, from Cash Investment Fund,
U.S. Government Fund and Treasury Fund
[LOGO]
6
<PAGE>
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NOTES TO FINANCIAL STATEMENTS (CONCLUDED) NOVEMBER 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 3. ADVISORY, SERVICING FEES AND OTHER TRANSACTIONS WITH
AFFILIATES (CONTINUED)
at an annual rate of 0.05% of the average daily net assets for the first $300
million of each Fund's net assets, declining to 0.025% of the average daily net
assets for each Fund's net assets in excess of $700 million. Forum and FAS
receive management and administrative fees, respectively, from Ready Cash
Investment Fund and Municipal Money Market Fund at an annual rate of 0.10% 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 amounts of legal expenses for the period ended November 30, 1996 for
Cash Investment Fund, U.S. Government Fund, Treasury Fund, Ready Cash Investment
Fund and Municipal Money Market Fund were: $7,898, $7,543, $4,011, $7,290 and
$2,962, respectively.
Forum Financial Corp. ("FFC"), an affiliate of Forum, provides fund accounting
services to the Funds. For these services, FFC receives a fee of $36,000 per
year per Fund plus certain amounts based upon the number of classes and number
and types of portfolio transactions within each Fund.
Norwest serves as the Trust's transfer agent, dividend disbursing agent and
custodian, and is compensated for those services at an aggregate annual rate of
up to 0.28% of the average daily net assets of Cash Investment Fund, U.S.
Government Fund and Treasury Fund; of up to 0.15% of the average daily net
assets of Ready Cash Investment Fund and Municipal Money Market Fund
attributable to Institutional Shares; and of up to 0.30% of the average daily
net assets attributable to the other classes of Ready Cash Investment Fund and
Municipal Money Market Fund.
The Trust has adopted a Distribution Plan (the "Plan") with respect to Exchange
Shares of Ready Cash Investment Fund pursuant to Rule 12b-1 under the Investment
Company Act of 1940. The Plan authorizes the payment to Forum of an annual
distribution service fee of 0.75% of the average daily net assets, and a
maintenance fee of 0.25% of the average daily net assets, of Ready Cash
Investment Fund attributable to Exchange Shares. No maintenance fees were
incurred by the Fund during the period ended November 30, 1996. The distribution
payments will be used to reimburse the distributor for (i) sales commissions at
levels set from time to time by the Board not to exceed 6.25% of the amount
received by the Fund for each Exchange share sold (excluding reinvestment of
dividends and distributions) and (ii) interest calculated by applying the rate
of 1% over the prime rate to the outstanding balance of unreimbursed
distribution charges. The current sales commission rate is based upon that rate
in effect for the fixed income or equity fund from which the shareholder
exchanged its shares. The Plan may be terminated by vote of a majority of the
Fund's shareholders or by vote of a majority of Trustees who do not have any
direct or indirect financial interest in the Plan. In the event that the Plan is
terminated or not continued, at the discretion of the Board of Trustees, the
Fund may continue to pay distribution service fees to Forum (but only with
respect to sales that occurred prior to the termination or discontinuance of the
Plan) until the earlier of (a) four years after the date of termination or
discontinuance or (b) such time as there exist no unreimbursed distribution
charges attributable to that Fund under the Plan, as calculated pursuant to the
Plan.
VOLUNTARY WAIVERS AND REIMBURSEMENTS-For the period ending November 30, 1996,
fees waived by the Trust's service providers were as follows:
<TABLE>
<CAPTION>
FEES WAIVED
--------------------------------------
CUSTODIAN AND
TRANSFER AGENT ADVISER FORUM/FAS
-------------- --------- -----------
<S> <C> <C> <C>
Cash Investment Fund....................................... $ 5,038 $ - $ 49,411
U.S. Government Fund....................................... - - -
Treasury Fund.............................................. 65,491 - 259,977
Ready Cash Investment Fund................................. 116,734 7,042 1,076,008
Municipal Money Market Fund................................ 178,726 182,515 479,461
</TABLE>
[LOGO]
7
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS NOVEMBER 30, 1996
- --------------------------------------------------------------------------------
SELECTED DATA FOR A SHARE OUTSTANDING DURING THE PERIOD
<TABLE>
<CAPTION>
BEGINNING NET REALIZED DIVIDENDS DISTRIBUTIONS
NET ASSET NET AND UNREALIZED FROM NET FROM NET CAPITAL ENDING NET
VALUE PER INVESTMENT GAIN (LOSS) ON INVESTMENT REALIZED CONTRIBUTION ASSET VALUE
SHARE INCOME INVESTMENTS INCOME GAINS FROM ADVISOR PER SHARE
--------- ---------- -------------- ---------- ------------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
CASH INVESTMENT FUND
Six Months Ended November
30, 1996(f)............. $1.00 $0.025 $ - ($0.025) $ - $ - $1.00
Year Ended May 31,
1996...................... 1.00 0.054 - (0.054) - - 1.00
1995...................... 1.00 0.049 - (0.049) - - 1.00
1994...................... 1.00 0.031 - (0.031) - - 1.00
1993...................... 1.00 0.033 - (0.033) - - 1.00
Six Months Ended May 31,
1992(d)................. 1.00 0.021 - (0.021) - - 1.00
U.S. GOVERNMENT FUND
Six Months Ended November
30, 1996(f)............. 1.00 0.024 - (0.024) - - 1.00
Year Ended May 31,
1996...................... 1.00 0.052 - (0.052) - - 1.00
1995...................... 1.00 0.047 - (0.047) - - 1.00
1994...................... 1.00 0.030 - (0.030) - - 1.00
1993...................... 1.00 0.030 - (0.030) - - 1.00
Six Months Ended May 31,
1992(d)................. 1.00 0.020 - (0.020) - - 1.00
TREASURY FUND
Six Months Ended November
30, 1996(f)............. 1.00 0.024 - (0.024) - - 1.00
Year Ended May 31,
1996...................... 1.00 0.050 - (0.050) - - 1.00
1995...................... 1.00 0.046 - (0.046) - - 1.00
1994...................... 1.00 0.028 - (0.028) - - 1.00
1993...................... 1.00 0.029 - (0.029) - - 1.00
Six Months Ended May 31,
1992(d)................. 1.00 0.020 - (0.020) - - 1.00
READY CASH INVESTMENT FUND
INVESTOR SHARES
Six Months Ended November
30, 1996(f)............. 1.00 0.024 - (0.024) - - 1.00
Year Ended May 31,
1996...................... 1.00 0.051 - (0.051) - - 1.00
1995...................... 1.00 0.045 - (0.045) - - 1.00
1994...................... 1.00 0.027 - (0.027) - - 1.00
1993...................... 1.00 0.030 - (0.030) - - 1.00
Six Months Ended May 31,
1992(d)................. 1.00 0.020 - (0.020) - - 1.00
EXCHANGE SHARES
Six Months Ended November
30, 1996(f)............. 1.00 0.020 - (0.020) - - 1.00
Year Ended May 31,
1996...................... 1.00 0.043 - (0.043) - - 1.00
1995...................... 1.00 0.038 - (0.038) - - 1.00
Period Ended May 31,
1994(c)................. 1.00 0.001 - (0.001) - - 1.00
INSTITUTIONAL SHARES
Six Months Ended November
30, 1996(f)............. 1.00 0.025 - (0.025) - - 1.00
Year Ended May 31,
1996...................... 1.00 0.054 - (0.054) - - 1.00
1995...................... 1.00 0.049 - (0.049) - - 1.00
Period Ended May 31,
1994(c)................. 1.00 0.013 - (0.013) - - 1.00
MUNICIPAL MONEY MARKET FUND
INVESTOR SHARES
Six Months Ended November
30, 1996(f)............. 1.00 0.015 - (0.015) - - 1.00
Year Ended May 31,
1996...................... 1.00 0.033 - (0.033) - - 1.00
1995...................... 1.00 0.031 (0.004) (0.031) - 0.004 1.00
1994...................... 1.00 0.021 - (0.021) - - 1.00
1993...................... 1.00 0.021 - (0.021) - - 1.00
Six Months Ended May 31,
1992(d)................. 1.00 0.014 - (0.014) - - 1.00
INSTITUTIONAL SHARES
Six Months Ended November
30, 1996(f)............. 1.00 0.016 - (0.016) - - 1.00
Year Ended May 31,
1996...................... 1.00 0.035 - (0.035) - - 1.00
1995...................... 1.00 0.033 (0.004) (0.033) - 0.004 1.00
Period Ended May 31,
1994(c)................. 1.00 0.019 - (0.019) - - 1.00
<CAPTION>
RATIOS TO
AVERAGE NET ASSETS
-------------------------- NET ASSETS AT
NET END OF PERIOD
INVESTMENT TOTAL (000'S
EXPENSES(A) INCOME RETURN OMITTED)
------------ ----------- ------ -------------
<S> <C> <C> <C> <C>
CASH INVESTMENT FUND
Six Months Ended November
30, 1996(f)............. 0.48%(b) 5.03%(b) 5.18%(b) $2,042,475
Year Ended May 31,
1996...................... 0.48% 5.36% 5.50% 1,739,549
1995...................... 0.48% 4.87% 4.96% 1,464,304
1994...................... 0.49% 3.11% 3.16% 1,381,402
1993...................... 0.50% 3.29% 3.36% 1,944,948
Six Months Ended May 31,
1992(d)................. 0.50%(b) 4.23%(b) 4.29%(b) 1,292,196
U.S. GOVERNMENT FUND
Six Months Ended November
30, 1996(f)............. 0.50%(b) 4.87%(b) 5.01%(b) 1,751,441
Year Ended May 31,
1996...................... 0.50% 5.13% 5.27% 1,649,721
1995...................... 0.50% 4.68% 4.81% 1,159,421
1994...................... 0.47% 3.02% 3.07% 1,091,141
1993...................... 0.45% 3.00% 3.06% 903,274
Six Months Ended May 31,
1992(d)................. 0.45%(b) 3.99%(b) 4.07%(b) 623,685
TREASURY FUND
Six Months Ended November
30, 1996(f)............. 0.46%(b) 4.73%(b) 4.86%(b) 957,449
Year Ended May 31,
1996...................... 0.46% 4.91% 5.04% 802,270
1995...................... 0.46% 4.62% 4.65% 661,098
1994...................... 0.46% 2.81% 2.83% 526,483
1993...................... 0.47% 2.93% 2.98% 384,751
Six Months Ended May 31,
1992(d)................. 0.47%(b) 4.01%(b) 4.07%(b) 374,492
READY CASH INVESTMENT FUND
INVESTOR SHARES
Six Months Ended November
30, 1996(f)............. 0.82%(b) 4.73%(b) 4.85%(b) 546,335
Year Ended May 31,
1996...................... 0.82% 5.02% 5.17% 473,879
1995...................... 0.82% 4.64% 4.62% 268,603
1994...................... 0.82% 2.70% 2.74% 164,138
1993...................... 0.82% 3.04% 3.08% 162,585
Six Months Ended May 31,
1992(d)................. 0.82%(b) 4.01%(b) 4.05%(b) 176,378
EXCHANGE SHARES
Six Months Ended November
30, 1996(f)............. 1.57%(b) 3.99%(b) 4.06%(b) 155
Year Ended May 31,
1996...................... 1.57% 4.32% 4.38% 129
1995...................... 1.57% 3.62% 3.69% 160
Period Ended May 31,
1994(c)................. 1.53%(b) 2.48%(b) 2.51%(b) 151
INSTITUTIONAL SHARES
Six Months Ended November
30, 1996(f)............. 0.48%(b) 5.05%(b) 5.20%(b) 1,194,433
Year Ended May 31,
1996...................... 0.48% 5.59% 5.53% 1,080,255
1995...................... 0.48% 4.97% 4.98% 506,243
Period Ended May 31,
1994(c)................. 0.43%(b) 3.12%(b) 3.17%(b) 333,464
MUNICIPAL MONEY MARKET FUND
INVESTOR SHARES
Six Months Ended November
30, 1996(f)............. 0.65%(b) 2.97%(b) 3.03%(b) 61,454
Year Ended May 31,
1996...................... 0.65% 3.25% 3.31% 57,021
1995...................... 0.65% 3.10% 3.13%(e) 47,424
1994...................... 0.65% 2.03% 2.09% 33,554
1993...................... 0.65% 2.13% 2.18% 75,521
Six Months Ended May 31,
1992(d)................. 0.63%(b) 2.81%(b) 2.89%(b) 82,678
INSTITUTIONAL SHARES
Six Months Ended November
30, 1996(f)............. 0.45%(b) 3.17%(b) 3.24%(b) 641,652
Year Ended May 31,
1996...................... 0.45% 3.41% 3.52% 592,436
1995...................... 0.45% 3.37% 3.33%(e) 278,953
Period Ended May 31,
1994(c)................. 0.45%(b) 2.33%(b) 2.34%(b) 190,356
</TABLE>
[LOGO]
See Notes to Financial Statements.
8
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONCLUDED) NOVEMBER 30, 1996
(a) During certain periods, various fees and expenses were waived and
reimbursed. Had such waivers and reimbursements not occurred, the ratio of
expenses to average net assets would have been:
<TABLE>
<CAPTION>
FOR THE SIX MONTHS YEAR ENDED MAY 31, SIX MONTHS
ENDED NOVEMBER 30, ---------------------------------------------- ENDED MAY 31,
1996(F) 1996 1995 1994 1993 1992(B)(D)
--------------------- ---------- ---------- ---------- ---------- ---------------
<S> <C> <C> <C> <C> <C> <C>
Cash Investment Fund.................... 0.48%(b) 0.49% 0.50% 0.49% 0.51% 0.56%
U.S. Government Fund.................... 0.50%(b) 0.51% 0.52% 0.53% 0.57% 0.61%
Treasury Fund........................... 0.53%(b) 0.56% 0.57% 0.58% 0.58% 0.59%
Ready Cash Investment Fund
Investor shares....................... 0.83%(b) 0.87% 0.91% 0.92% 0.94% 0.93%
Exchange shares....................... 2.77%(b) 8.24% 6.32% 1.85%(b) - -
Institutional shares.................. 0.67%(b) 0.72% 0.73% 0.81%(b) - -
Municipal Money Market Fund
Investor shares....................... 0.88%(b) 0.88% 0.93% 0.99% 0.97% 0.96%
Institutional shares.................. 0.69%(b) 0.72% 0.74% 0.77%(b) - -
</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.
(f) Unaudited
[LOGO]
See Notes to Financial Statements.
9
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS NOVEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
CASH INVESTMENT FUND
- -----------------------------------------------------------------
AGENCY NOTES (1.7%)
20,000,000 Federal National Mortgage Association,
5.30%, due 12/26/96 $ 19,997,359
15,000,000 Student Loan Marketing Association,
5.35% variable rate, due 11/10/98(b) 14,972,180
--------------
TOTAL AGENCY NOTES 34,969,539
--------------
ASSET BACKED SECURITIES (1.6%)
21,794,480 Capital Equipment Receivables Trust
1996-1, Receivable Backed Notes, Class
A-1, 5.60%, due 10/15/97(a) 21,794,480
8,020,954 NationsBank Auto Owner Trust, Series
1996-A, Class A1, 5.78%, due
8/15/97(a) 8,020,954
1,795,265 Small Business Administration Guaranteed
Loan Pool 502339, 6.125% variable
rate, due 1/25/03(b) 1,795,265
--------------
TOTAL ASSET BACKED SECURITIES 31,610,699
--------------
BANK NOTES (11.5%)
25,000,000 Bank of Hawaii, 5.50%, due 1/3/97 24,998,952
25,000,000 Bank of Hawaii, 5.63%, due 11/7/97 24,996,042
20,000,000 FCC National Bank, 5.73%, due 8/21/97 19,989,004
25,000,000 First National Bank of Maryland, 5.15%,
due 2/26/97 25,002,836
20,000,000 National Australia Bank Ltd., 5.12%, due
2/28/97 19,998,607
25,000,000 National Australia Bank Ltd., 5.80%, due
10/3/97 25,013,097
25,000,000 PNC Bank, N.A., Pittsburgh, 5.325%
variable rate, due 12/20/96 24,999,286
10,000,000 PNC Bank, N.A., Pittsburgh, 5.295%
variable rate, due 1/6/97 9,999,259
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
CASH INVESTMENT FUND (continued)
- -----------------------------------------------------------------
25,000,000 PNC Bank, N.A., Pittsburgh, 5.275%
variable rate, due 7/2/97 $ 24,986,860
35,000,000 Shizuoka Bank Ltd., 5.375% variable
rate, due 10/27/97 34,993,882
--------------
TOTAL BANK NOTES 234,977,825
--------------
CERTIFICATES OF DEPOSIT (5.9%)
10,000,000 Banco Espirito Santa E Comercial de
Lisboa, Nassau Branch, 5.56%, due
3/10/97 10,000,000
15,000,000 Bayerische Hypotheken-und Wechsel Bank
AG, London Branch, 5.96%, due 8/6/97 15,014,640
15,000,000 Deutsche Bank, 5.91%, due 6/10/97 14,999,253
5,900,000 Morgan Guaranty Trust Company of New
York, 5.78%, due 8/5/97 5,897,725
25,000,000 Norinchukin Bank Ltd., 5.53%, due 1/9/97 24,999,973
20,000,000 Sumitomo Bank Ltd., 5.41%, due 12/9/96 20,000,035
15,000,000 Swiss Bank Corporation, 5.30%, due
3/4/97 14,982,249
15,000,000 Westpac Banking Corporation, 5.80%, due
8/25/97 14,997,516
--------------
TOTAL CERTIFICATES OF DEPOSIT 120,891,391
--------------
COMMERCIAL PAPER (43.4%)
5,300,000 Anchor Funding Corporation, 5.55% yield,
due 1/24/97(a) 5,256,695
10,199,000 Anchor Funding Corporation, 5.55% yield,
due 1/31/97(a) 10,104,660
25,000,000 Apex Funding Corporation, 5.41% yield,
due 1/21/97(a) 24,812,153
43,964,000 Apex Funding Corporation, 5.45% yield,
due 1/31/97(a) 43,566,328
17,773,000 Apex Funding Corporation, 5.40% yield,
due 4/30/97(a) 17,375,773
13,698,000 Arena Funding Corporation, 5.53% yield,
due 12/5/96(a) 13,691,688
</TABLE>
[LOGO]
See Notes to Financial Statements.
10
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
CASH INVESTMENT FUND (continued)
- -----------------------------------------------------------------
10,252,000 Arena Funding Corporation, 5.50% yield,
due 1/16/97(a) $ 10,181,518
24,800,000 Asset Backed Capital Finance Inc., 5.52%
yield, due 3/17/97(a) 24,400,721
10,100,000 Asset Backed Capital Finance Inc., 5.40%
yield, due 4/8/97(a) 9,907,595
13,500,000 Asset Backed Capital Finance Inc., 5.35%
yield, due 5/1/97(a) 13,199,063
6,159,000 Astro Capital Corporation, 5.50% yield,
due 2/28/97(a) 6,076,196
11,230,000 Astro Capital Corporation, 5.50% yield,
due 3/27/97(a) 11,032,696
10,000,000 BTM Capital Corporation, 5.41% yield,
due 1/23/97 9,921,856
9,400,000 Banner Receivables Corporation, 5.38%
yield, due 4/7/97(a) 9,223,163
20,000,000 Barton Capital Corporation, 5.37%, due
4/15/97(a) 19,600,234
5,094,000 Broadway Capital Corporation, 5.47%
yield, due 12/20/96(a) 5,080,068
11,000,000 CSR America, Inc., 5.46% yield, due
2/26/97(a) 10,856,524
10,000,000 Casio-Phonemate, Inc., Bank of
Tokyo-Mitsubishi, Ltd. LOC, 5.47%
yield, due 1/16/97 9,932,375
35,000,000 Corporate Asset Securitization Australia
Ltd., Inc., 5.37% yield, due 2/7/97(a) 34,650,204
6,996,000 Creative Capital Corporation, 5.63%
yield, due 12/24/96(a) 6,971,951
5,000,000 Diamond Lease (USA) Inc., Bank of
Tokyo-Mitsubishi, Ltd. LOC, 5.41%
yield, due 1/23/97 4,960,928
15,000,000 Finance One Funding Corporation, Credit
Suisse LOC, 5.47% yield, due 2/26/97 14,803,992
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
CASH INVESTMENT FUND (continued)
- -----------------------------------------------------------------
20,000,000 Franklin Resources, Inc., 5.45% yield,
due 2/3/97 $ 19,811,875
10,000,000 Gotham Funding Corporation, 5.53% yield,
due 12/4/96(a) 9,996,928
15,000,000 Gotham Funding Corporation, 5.42% yield,
due 1/16/97(a) 14,898,375
10,000,000 Gotham Funding Corporation, 5.38% yield,
due 2/11/97(a) 9,893,895
15,000,000 Gotham Funding Corporation, 5.43% yield,
due 2/14/97(a) 14,832,575
14,656,000 Gotham Funding Corporation, 5.38% yield,
due 2/18/97(a) 14,485,161
17,000,000 Industrial Funding Corporation, 5.40%
yield, due 1/17/97 16,882,700
3,475,000 Industrial Funding Corporation, 5.41%
yield, due 1/31/97 3,443,667
46,000,000 Industrial Funding Corporation, 5.40%
yield, due 2/5/97 45,551,500
23,474,000 Jet Funding Corporation, 5.48% yield,
due 12/2/96 23,474,000
22,550,000 Mitsubishi Motor Credit of America Inc.,
Bank of Toyko-Mitsubishi LOC, 5.48%
yield, due 12/2/96 22,550,000
20,000,000 Mitsubishi Motor Credit of America Inc.,
Series D, Industrial Bank of Japan
LOC, 5.40% yield, due 1/15/97 19,868,000
20,000,000 Nomura Holding America, 5.40% yield, due
1/9/97 19,886,000
31,650,000 Nordbanken North America, Inc., 5.67%
yield, due 3/7/97 31,176,437
15,000,000 Oak Funding Corporation, 5.41% yield,
due 1/21/97 14,887,292
8,000,000 Oak Funding Corporation, 5.41% yield,
due 1/31/97 7,927,867
</TABLE>
[LOGO]
See Notes to Financial Statements.
11
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
CASH INVESTMENT FUND (continued)
- -----------------------------------------------------------------
10,000,000 Orix America, Inc., Industrial Bank of
Japan LOC, 5.40% yield, due 1/13/97 $ 9,937,000
3,500,000 Orix America, Inc., Norinchukin Bank,
Ltd. LOC, 5.55% yield, due 2/14/97 3,460,071
7,000,000 Orix America, Inc., Sanwa Bank, Ltd.
LOC, 5.42% yield, due 2/14/97 6,953,629
15,000,000 Province of Quebec, 5.45% yield, due
5/16/97 14,625,313
13,184,000 Riverside Funding, Inc., Bank of
Toyko-Mitsubishi, Ltd. LOC, 5.43%
yield, due 2/5/97 13,054,742
15,000,000 SRD Finance, Inc., Sumitomo Bank Ltd.
LOC, 5.59% yield, due 12/5/96 14,993,013
7,000,000 Shimizu International Finance, Inc., Dai
Ichi Kangyo Bank LOC, 5.45% yield, due
1/24/97 6,943,835
16,497,000 Strait Capital Corporation, 5.38% yield,
due 3/18/97 16,235,670
29,461,000 Strategic Asset Funding Corporation,
5.40% yield, due 2/28/97 29,072,115
10,000,000 Sumitomo Bank Capital Markets, Inc.
5.54% yield, due 12/6/96 9,993,844
25,000,000 Sumitomo Bank Capital Markets, Inc.
5.41% yield, due 2/14/97 24,699,240
20,000,000 Svenska Handelsbanken, Inc., 5.65%
yield, due 3/10/97 19,692,390
22,000,000 Toshiba America, Inc., 5.43% yield, due
2/10/97 21,767,717
11,430,000 Tri-Lateral Capital, Inc., 5.55% yield,
due 1/6/97(a) 11,368,326
12,680,000 Tri-Lateral Capital, Inc., 5.47% yield,
due 1/13/97(a) 12,599,081
35,000,000 Tri-Lateral Capital, Inc., 5.45% yield,
due 1/17/97(a) 34,756,265
12,858,000 WMX Technologies, Inc., 5.65% yield, due
3/4/97(a) 12,672,345
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
CASH INVESTMENT FUND (continued)
- -----------------------------------------------------------------
16,575,000 WMX Technologies, Inc., 5.65% yield, due
3/11/97(a) $ 16,317,466
--------------
TOTAL COMMERCIAL PAPER 884,314,715
--------------
CORPORATE NOTES (22.2%)
32,000,000 Asset Backed Trust 1995 Series A-1,
5.395% variable rate, due 12/10/97(a) 31,999,990
27,500,000 Asset Backed Trust 1995 Series A-3,
5.385% variable rate, due 4/15/97(a) 27,500,000
35,000,000 Asset Backed Trust 1996 Series A-5,
5.425% variable rate, due 3/17/97(a) 35,000,000
10,000,000 Asset Backed Trust 1996 Series M, 5.375%
variable rate, due 10/15/97(a) 10,000,000
50,000,000 Bear Stearns Companies, Inc., 5.05%
variable rate, due 10/22/97 50,000,000
25,000,000 Bear Stearns Companies, Inc., 5.525%
variable rate, due 3/15/01(b) 25,000,000
15,000,000 CS First Boston, Inc., 5.6625% variable
rate, due 9/15/00(b) 15,000,000
13,600,000 Cargill, Inc., 8.25%, due 3/6/97 13,697,956
9,770,000 Caterpillar Financial Services
Corporation Medium Term Notes, 7.46%,
due 10/15/97 9,911,414
8,150,000 Ford Motor Credit Company, 7.875%, due
1/15/97 8,177,020
10,000,000 General Electric Capital Corporation,
7.98%, due 12/15/96 10,009,188
5,000,000 General Electric Capital Corporation,
5.05%, due 2/3/97 5,000,329
15,000,000 IBM Credit Corporation, 5.70%, due
5/22/97 14,976,000
30,000,000 Merrill Lynch & Company, Inc., 5.375%
variable rate, due 3/14/97 30,000,000
</TABLE>
[LOGO]
See Notes to Financial Statements.
12
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
CASH INVESTMENT FUND (continued)
- -----------------------------------------------------------------
40,000,000 Morgan Stanley Group, Inc., 5.725%
variable rate, due 3/15/01(b) $ 40,000,000
25,000,000 Morgan Stanley Group, Inc., 5.60%
variable rate, due 5/15/01(b) 25,000,000
15,000,000 PepsiCo, Inc., 7.75%, due 2/28/97 15,091,887
7,050,000 Potomac Electric Power Company, 6.70%,
due 5/28/97 7,087,627
15,000,000 Restructured Asset Certificaties, Series
1996 MM-2-2, 5.65% variable rate, due
1/10/00(a)(b) 15,000,000
2,000,000 Security Pacific Corporation, 7.75%, due
12/1/96 2,000,000
16,800,000 Southern California Edison Company,
5.90%, due 1/15/97 16,811,500
25,000,000 Structured Product Asset Return
Certificate Trusts, Series 96-12,
5.475% variable rate, due 10/22/97(a) 25,000,000
20,000,000 Toyota Motor Credit Corporation, 5.00%,
due 2/26/97 19,994,644
--------------
TOTAL CORPORATE NOTES 452,257,555
--------------
MUNICIPAL BONDS & NOTES (2.2%)
12,300,000 Calcasieu Parish Inc., LA, Industrial
Development Board, Environmental
Revenue Bonds, Series 1996, ABN AMRO
Bank N.V. LOC, 5.33%, due 12/9/96 12,299,505
8,300,000 Durham, NC, Certificates of
Participation, Series B, 5.45%
variable rate, due 7/1/03(b) 8,300,000
20,000,000 New York, NY, Series B12, Bayerische
Landesbank Girozentrale LOC, 5.80%,
due 1/15/97 20,000,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
CASH INVESTMENT FUND (concluded)
- -----------------------------------------------------------------
5,200,000 Ridgefield, CT, Bond Anticipation Notes,
5.85%, due 11/7/97 $ 5,206,848
--------------
TOTAL MUNICIPAL BONDS & NOTES 45,806,353
--------------
TIME DEPOSITS (10.0%)
56,000,000 Banca Commerciale Italiana Spa Canada,
Toronto, 5.8125%, due 12/2/96 56,000,000
56,000,000 Bank of Tokyo-Mitsubishi, Ltd., 5.75%,
due 12/2/96 56,000,000
53,000,000 Banque Bruxelles Lambert, 5.625%, due
12/2/96 53,000,000
39,562,624 Sanwa Bank, Ltd., 5.75%, due 12/2/96 39,562,624
--------------
TOTAL TIME DEPOSITS 204,562,624
--------------
OTHER INVESTMENTS (1.5%)
15,000,000 American General Finance Inc., Master
Note 15,000,000
15,000,000 General Electric Company, Master Note 15,000,000
--------------
TOTAL OTHER INVESTMENTS 30,000,000
--------------
TOTAL INVESTMENTS (100.0%) $2,039,390,701
--------------
--------------
- -----------------------------------------------------------------
U.S. GOVERNMENT FUND
- -----------------------------------------------------------------
AGENCY NOTES (20.1%)
35,000,000 Federal Farm Credit Bank, 5.38% variable
rate, due 4/1/97 $ 34,999,177
20,000,000 Federal Farm Credit Bank, 5.93%, due
7/1/97 19,985,384
10,000,000 Federal Home Loan Bank, 5.63%, due
12/17/97 10,000,000
15,000,000 Federal National Mortgage Association,
5.30%, due 12/26/96 14,998,018
32,260,000 Federal National Mortgage Association,
5.94% variable rate, due 1/15/97 32,279,918
</TABLE>
[LOGO]
See Notes to Financial Statements.
13
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
U.S. GOVERNMENT FUND (continued)
- -----------------------------------------------------------------
20,000,000 Federal National Mortgage Association,
7.68%, due 1/27/97 $ 20,065,185
15,000,000 Federal National Mortgage Association,
5.05%, due 3/14/97 14,979,961
50,000,000 Federal National Mortgage Association,
5.32% variable rate, due 11/25/97 49,961,862
5,000,000 Student Loan Marketing Association,
5.41% variable rate, due 8/4/97 4,996,068
12,000,000 Student Loan Marketing Association,
5.51% variable rate, due 10/30/97 12,015,636
10,150,000 Student Loan Marketing Association,
5.82%, due 11/7/97 10,150,000
31,500,000 Student Loan Marketing Association,
5.51% variable rate, due 1/21/98(b) 31,531,011
48,250,000 Student Loan Marketing Association,
5.46% variable rate, due 2/17/98(b) 48,221,324
25,000,000 Student Loan Marketing Association,
5.405% variable rate, due 4/21/98(b) 24,995,036
25,980,000 Student Loan Marketing Association,
5.35% variable rate, due 8/20/98(b) 25,945,216
--------------
TOTAL AGENCY NOTES 355,123,796
--------------
DISCOUNT NOTES (56.4%)
31,875,000 Federal Farm Credit Bank, 5.42% yield,
due 1/9/97 31,692,640
40,000,000 Federal Home Loan Bank, 5.29% yield, due
12/3/96 39,994,122
25,000,000 Federal Home Loan Bank, 5.29% yield, due
12/6/96 24,985,306
25,000,000 Federal Home Loan Bank, 5.12% yield, due
12/16/96 24,950,222
25,000,000 Federal Home Loan Bank, 5.19% yield, due
12/19/96 24,938,729
25,000,000 Federal Home Loan Bank, 5.16% yield, due
12/27/96 24,910,417
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
U.S. GOVERNMENT FUND (continued)
- -----------------------------------------------------------------
20,000,000 Federal Home Loan Bank, 5.43% yield, due
12/31/96 $ 19,912,517
25,000,000 Federal Home Loan Bank, 5.24% yield, due
1/13/97 24,847,167
25,000,000 Federal Home Loan Bank, 5.23% yield, due
1/23/97 24,811,320
49,885,000 Federal Home Loan Bank, 5.26% yield, due
2/3/97 49,416,332
50,000,000 Federal Home Loan Bank, 5.21% yield, due
2/18/97 49,435,583
25,000,000 Federal Home Loan Bank, 5.24% yield, due
02/24/97 24,694,334
29,700,000 Federal Home Loan Bank, 5.42% yield, due
3/17/97 29,230,493
25,000,000 Federal Home Loan Bank, 5.24% yield, due
3/26/97 24,585,168
10,015,000 Federal Home Loan Bank, 5.26% yield, due
4/9/97 9,827,698
50,000,000 Federal Home Loan Mortgage Corporation,
5.27% yield, due 12/12/96 49,926,806
18,695,000 Federal Home Loan Mortgage Corporation,
5.21% yield, due 12/30/96 18,619,244
20,000,000 Federal Home Loan Mortgage Corporation,
5.23% yield, due 1/31/97 19,825,667
49,250,000 Federal Home Loan Mortgage Corporation,
5.45% yield, due 2/7/97 48,761,156
20,000,000 Federal Home Loan Mortgage Corporation,
5.23% yield, due 2/18/97 19,773,367
50,000,000 Federal Home Loan Mortgage Corporation,
5.23% yield, due 2/21/97 49,411,626
25,000,000 Federal Home Loan Mortgage Corporation,
5.20% yield, due 02/24/97 24,696,667
25,000,000 Federal Home Loan Mortgage Corporation,
5.22% yield, due 3/5/97 24,662,875
9,703,000 Federal Home Loan Mortgage Corporation,
5.27% yield, due 4/1/97 9,532,551
</TABLE>
[LOGO]
See Notes to Financial Statements.
14
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
U.S. GOVERNMENT FUND (continued)
- -----------------------------------------------------------------
34,200,000 Federal National Mortgage Association,
5.38% yield, due 12/6/96 $ 34,179,556
25,000,000 Federal National Mortgage Association,
5.38% yield, due 12/17/96 24,943,958
20,000,000 Federal National Mortgage Association,
5.23% yield, due 1/9/97 19,889,589
6,115,000 Federal National Mortgage Association,
5.21% yield, due 1/16/97 6,075,176
25,000,000 Federal National Mortgage Association,
5.21% yield, due 2/12/97 24,739,750
20,000,000 Federal National Mortgage Association,
5.30% yield, due 2/28/97 19,740,889
17,500,000 Federal National Mortgage Association,
5.23% yield, due 3/3/97 17,268,866
10,000,000 Federal National Mortgage Association,
5.45% yield, due 3/7/97 9,856,181
35,000,000 Federal National Mortgage Association,
5.45% yield, due 3/10/97 34,480,736
41,000,000 Federal National Mortgage Association,
5.34% yield, due 3/17/97 40,361,425
25,000,000 Federal National Mortgage Association,
5.26% yield, due 4/16/97 24,506,876
25,000,000 Federal National Mortgage Association,
5.30% yield, due 6/9/97 24,304,376
10,000,000 Federal National Mortgage Association,
5.42% yield, due 7/9/97 9,670,285
10,000,000 Tennessee Valley Authority, 5.18% yield,
due 1/24/97 9,923,740
--------------
TOTAL DISCOUNT NOTES $993,383,410
--------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
U.S. GOVERNMENT FUND (continued)
- -----------------------------------------------------------------
REPURCHASE AGREEMENTS (23.5%)
63,708,000 BA Securities, Inc., 5.60%, due 12/2/96,
to be repurchased at $63,737,730.
Collateralized by $35,000,000 Federal
Farm Credit Bank Discount Notes,
5.26%, due 2/18/97; $10,000,000
Federal Farm Credit Bank Discount
Notes, 5.20%, due 2/26/97; $19,950,000
U.S. Treasury Notes, 6.125%, due
3/31/97 $ 63,708,000
88,203,562 BA Securities, Inc., 5.65%, due 12/2/96,
to be repurchased at $88,245,091.
Collateralized by $1,837,500 Federal
Farm Credit Bank Discount Notes,
5.26%, due 12/31/96; $3,675,000
Federal Farm Credit Bank Discount
Notes, 5.33%, due 5/23/97; $11,484,375
Federal Home Loan Mortgage Corporation
Discount Notes, 5.27%, due 1/2/97;
$11,484,375 Federal National Mortgage
Association Discount Notes, 5.30%, due
12/27/96; $12,403,125 Federal National
Mortgage Association Discount Notes,
5.20%, due 2/27/97; $3,675,000 Federal
National Mortgage Association Discount
Notes, 5.23%, due 3/3/97; $11,484,375
Federal National Mortgage Association
Discount Notes, 5.35%, due 6/24/97;
$2,756,250 Student Loan Marketing
Association Discount Notes, 5.19%,
</TABLE>
[LOGO]
See Notes to Financial Statements.
15
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
U.S. GOVERNMENT FUND (continued)
- -----------------------------------------------------------------
due 12/2/96; $20,134,406 U.S. Treasury
Bills, 5.06%, due 12/12/96; $7,809,375
U.S. Treasury Bills, 4.93%, due
1/16/97; $6,890,625 U.S. Treasury
Notes, 7.50%, due 12/31/96 $ 88,203,562
111,235,484 Chase Securities, Inc., 5.65%, due
12/2/96, to be repurchased at
$111,287,857; Collateralized by
$25,000,000 Federal Home Loan Bank
Discount Notes, 5.19%, due 12/6/96;
$80,000,000 Federal Home Loan Mortgage
Corporation Discount Notes, 5.32%, due
12/9/96; $40,000,000 Federal Home Loan
Mortgage Corporation Discount Notes,
5.32%, due 12/11/96; $8,700,000
Federal Home Loan Mortgage Corporation
Discount Notes, 5.32%, due 12/12/96 111,235,484
150,000,000 Bear, Stearns & Co., Inc., 5.65%
variable rate, due 12/5/96, available
on demand at 150,000,000 plus accrued
interest, Collateralized by
$28,830,000 U.S. Treasury Bills,
5.16%, due 1/2/97, $50,000,000 U.S.
Treasury Strip Notes, 5.03%, due
2/15/97, $10,000,000 U.S. Treasury
Strip Notes, 5.17%, 8/15/97,
$68,880,000 U.S. Treasury Strip Notes,
5.37%, due 11/15/97 150,000,000
--------------
TOTAL REPURCHASE AGREEMENTS 413,147,046
--------------
TOTAL INVESTMENTS (100.0%) $1,761,654,252
--------------
--------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
TREASURY FUND
- -----------------------------------------------------------------
TREASURY BILLS (65.5%)
75,000,000 U.S. Treasury, 4.90% yield, due 12/5/96 $ 74,969,333
75,000,000 U.S. Treasury, 5.14% yield, due 12/12/96 74,894,722
75,000,000 U.S. Treasury, 4.82% yield, due 12/19/96 74,826,046
80,000,000 U.S. Treasury, 4.95% yield, due 1/9/97 79,580,707
59,555,000 U.S. Treasury, 4.98% yield, due 1/16/97 59,184,395
70,000,000 U.S. Treasury, 4.99% yield, due 1/23/97 69,494,517
45,000,000 U.S. Treasury, 5.03% yield, due 2/6/97 44,586,813
75,000,000 U.S. Treasury, 5.02% yield, due 4/3/97 73,722,390
--------------
TOTAL TREASURY BILLS 551,258,923
--------------
TREASURY NOTES (34.5%)
50,000,000 U.S. Treasury, 6.50%, due 12/2/96 50,000,000
25,000,000 U.S. Treasury, 7.25%, due 12/2/96 25,000,000
75,000,000 U.S. Treasury, 7.50%, due 1/31/97 75,257,165
60,000,000 U.S. Treasury, 4.75%, due 2/15/97 59,909,648
60,000,000 U.S. Treasury, 6.625%, due 3/31/97 60,244,549
20,000,000 U.S. Treasury, 6.50%, due 4/30/97 20,077,912
--------------
TOTAL TREASURY NOTES 290,489,274
--------------
TOTAL INVESTMENTS (100.0%) $841,748,197
--------------
--------------
- -----------------------------------------------------------------
READY CASH INVESTMENT FUND
- -----------------------------------------------------------------
AGENCY NOTES (3.3%)
30,000,000 Federal Farm Credit Bank, 5.93%, due
7/1/97 $ 29,978,075
15,000,000 Federal National Mortgage Association,
5.30%, due 12/26/96 14,998,018
</TABLE>
[LOGO]
See Notes to Financial Statements.
16
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
READY CASH INVESTMENT FUND (continued)
- -----------------------------------------------------------------
13,000,000 Student Loan Marketing Association,
5.35% variable rate, due 11/10/98(b) $ 12,975,889
--------------
TOTAL AGENCY NOTES 57,951,982
--------------
ASSET BACKED SECURITIES (3.6%)
17,435,584 Capital Equipment Receivables Trust
1996-1, Receivable Backed Notes, Class
A-1, 5.60%, due 10/15/97(a) 17,435,584
8,020,954 NationsBank Auto Owner Trust, Series
1996-A, Class A1, 5.776%, due
8/15/97(a) 8,020,954
1,709,495 Small Business Administration Pool
502524, 6.00% variable rate, due
2/25/04(b) 1,709,495
35,000,000 WFP Tower B Finance Corporation,
Short-Term STEERS Trust, Series 1996
A, 5.41% variable rate, due 12/8/97(a) 34,993,202
--------------
TOTAL ASSET BACKED SECURITIES 62,159,235
--------------
BANK NOTES (12.1%)
15,000,000 Bank of Hawaii, 5.50%, due 1/3/97 14,999,370
20,000,000 Bank of Hawaii, 5.63%, due 11/7/97 19,996,835
15,000,000 FCC National Bank, 5.73%, due 8/21/97 14,991,755
15,000,000 First National Bank of Maryland, 5.15%,
due 2/26/97 15,001,702
5,000,000 National Australia Bank Ltd., 5.12%, due
2/28/97 4,999,652
50,000,000 National Australia Bank Ltd., 5.80%, due
10/3/97 50,011,603
25,000,000 PNC Bank, N.A., Pittsburgh, 5.325%
variable rate, due 12/20/96 24,999,286
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
READY CASH INVESTMENT FUND (continued)
- -----------------------------------------------------------------
15,000,000 PNC Bank, N.A., Pittsburgh, 5.295%
variable rate, due 1/6/97 $ 14,998,887
25,000,000 PNC Bank, N.A., Pittsburgh, 5.275%
variable rate, due 7/2/97 24,986,860
25,000,000 Shizuoka Bank Ltd., 5.375% variable
rate, due 8/25/97 25,000,000
--------------
TOTAL BANK NOTES 209,985,950
--------------
CERTIFICATES OF DEPOSIT (5.7%)
13,000,000 Bayerische Hypotheken-und Wechsel Bank
AG, London Branch, 5.96%, due 8/6/97 13,012,688
10,000,000 Deutsche Bank, 5.91%, due 6/10/97 9,999,502
25,000,000 Dresdner Bank AG, 5.05%, due 2/26/97 24,998,299
10,400,000 Societe Generale, 6.03%, due 7/21/97 10,410,959
15,000,000 Sumitomo Bank Ltd., 5.41%, due 12/9/96 15,000,027
15,000,000 Swiss Bank Corporation, 5.30%, due
3/4/97 14,982,249
10,000,000 Westpac Banking Corporation, 5.80%, due
8/25/97 9,998,343
--------------
TOTAL CERTIFICATES OF DEPOSIT 98,402,067
--------------
COMMERCIAL PAPER (45.3%)
52,414,000 Anchor Funding Corporation, 5.55% yield,
due 1/17/97(a) 52,050,427
12,000,000 Anchor Funding Corporation, 5.40% yield,
due 2/7/97(a) 11,879,400
5,391,000 Apex Funding Corporation, 5.35% yield,
due
12/30/96(a) 5,368,568
18,000,000 Apex Funding Corporation, 5.41% yield,
due 1/21/97(a) 17,864,750
31,208,000 Apex Funding Corporation, 5.41% yield,
due 1/31/97(a) 30,926,506
10,000,000 Asset Backed Capital Finance Inc., 5.40%
yield, due 4/8/97(a) 9,809,500
</TABLE>
[LOGO]
See Notes to Financial Statements.
17
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
READY CASH INVESTMENT FUND (continued)
- -----------------------------------------------------------------
20,000,000 Asset Backed Capital Finance Inc., 5.35%
yield, due 5/1/97(a) $ 19,554,167
20,000,000 Atlas Funding Corporation, 5.35% yield,
due 12/5/96(a) 19,991,083
35,137,000 Atlas Funding Corporation. 5.42% yield,
due 2/19/97(a) 34,719,084
10,000,000 BTM Capital Corporation, 5.41% yield,
due 1/23/97 9,921,856
20,000,000 Bank of Scotland, 5.60% yield, due
2/24/97 19,738,667
9,000,000 Banner Receivables Corporation, 5.38%
yield, due 4/7/97(a) 8,830,688
25,000,000 Barton Capital Corporation, 5.37%, due
4/15/97(a) 24,500,293
11,600,000 Beta Finance, Inc., 5.46% yield, due
2/7/97(a) 11,482,125
21,000,000 Casio-Phonemate, Inc., Bank of
Tokyo-Mitsubishi, Ltd. LOC, 5.40%
yield, due 1/15/97 20,861,400
26,587,000 FP Funding Corporation, 5.60% yield, due
1/2/97(a) 26,458,792
5,000,000 Finance One Funding Corporation, Credit
Suisse LOC, 5.47% yield, due 2/26/97 4,934,664
5,000,000 Gotham Funding Corporation, 5.53% yield,
due 12/4/96(a) 4,998,464
32,995,000 Gotham Funding Corporation, 5.48% yield,
due 12/16/96(a) 32,924,684
8,671,000 Gotham Funding Corporation, 5.42% yield,
due 1/16/97(a) 8,612,254
3,092,000 Gotham Funding Corporation, 5.55% yield,
due 2/3/97(a) 3,061,969
15,000,000 Gotham Funding Corporation, 5.38% yield,
due 2/11/97(a) 14,840,842
10,000,000 Gotham Funding Corporation, 5.43% yield,
due 2/14/97(a) 9,888,384
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
READY CASH INVESTMENT FUND (continued)
- -----------------------------------------------------------------
10,000,000 Gotham Funding Corporation, 5.38% yield,
due 2/18/97(a) $ 9,883,434
24,000,000 Industrial Funding Corporation, 5.40%
yield, due 2/5/97 23,766,000
6,337,000 Iris Partners L.P., Sumitomo Bank Ltd.
LOC, 5.40% yield, due 2/6/97 6,274,264
46,359,000 Jet Funding Corporation, 5.65% yield,
due 12/2/96 46,359,000
20,000,000 Nomura Holding America, 5.40% yield, due
1/9/97 19,886,000
10,000,000 Oak Funding Corporation, 5.41% yield,
due 1/21/97 9,924,862
10,000,000 Orix America, Inc., Industrial Bank of
Japan LOC, 5.40% yield, due 1/13/97 9,937,000
9,500,000 Orix America, Inc., Industrial Bank of
Japan LOC, 5.62% yield, due 2/27/97 9,370,975
15,000,000 Orix America, Inc., Norinchukin Bank,
Ltd. LOC, 5.60% yield, due 2/27/97 14,797,000
18,790,000 Orix America, Inc., Sanwa Bank, Ltd.
LOC, 5.63% yield, due 12/2/96 18,790,000
40,000,000 Province of Quebec, 5.41% yield, due
2/13/97 39,561,189
5,000,000 Province of Quebec, 5.45% yield, due
5/16/97 4,875,105
10,000,000 SRD Finance, Inc., Sumitomo Bank Ltd.
LOC, 5.59% yield, due 12/5/96 9,995,342
18,625,000 Strategic Asset Funding Corporation,
5.47% yield, due 12/2/96 18,625,000
14,450,000 Sumitomo Bank Capital Markets, Inc.,
5.58% yield, due 1/30/97 14,317,973
20,000,000 Sumitomo Bank Capital Markets, Inc.,
5.42% yield, due 2/7/97 19,798,256
</TABLE>
[LOGO]
See Notes to Financial Statements.
18
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
READY CASH INVESTMENT FUND (continued)
- -----------------------------------------------------------------
5,000,000 Sumitomo Bank Capital Markets, Inc.,
5.42% yield, due 2/14/97 $ 4,944,295
13,500,000 Sumitomo Corporation of America, 5.46%
yield, due 12/2/96 13,500,000
15,000,000 Svenska Handelsbanken, Inc., 5.65%
yield, due 3/10/97 14,769,292
15,000,000 Toshiba America, Inc., 5.43% yield, due
2/21/97 14,816,738
12,900,000 Tri-Lateral Capital, Inc., 5.48% yield,
due 12/2/96(a) 12,900,000
10,000,000 Tri-Lateral Capital, Inc., 5.55% yield,
due 1/6/97(a) 9,946,042
7,910,000 Tri-Lateral Capital, Inc., 5.45% yield,
due 1/17/97(a) 7,854,916
4,560,000 Tri-Lateral Capital, Inc., 5.42% yield,
due 1/31/97(a) 4,518,808
6,640,000 Tri-Lateral Capital, Inc., 5.42% yield,
due 2/3/97(a) 6,577,020
19,123,000 WMX Technologies, Inc., 5.65% yield, due
3/11/97(a) 18,825,877
--------------
TOTAL COMMERCIAL PAPER 788,032,955
--------------
CORPORATE NOTES (21.5%)
15,000,000 Asset Backed Trust 1995 Series A-1,
5.395% variable rate, due 12/10/97(a) 15,000,000
22,000,000 Asset Backed Trust 1995 Series A-3,
5.385% variable rate, due 4/15/97(a) 22,000,000
15,000,000 Asset Backed Trust 1996 Series A-4,
5.405% variable rate, due 1/15/97(a) 14,999,944
30,000,000 Asset Backed Trust 1996 Series A-5,
5.425% variable rate, due 3/17/97(a) 30,000,000
15,000,000 Asset Backed Trust 1996 Series M, 5.375%
variable rate, due 10/15/97(a) 15,000,000
31,200,000 BT Securities Corporation, 5.75%
variable rate, due 2/3/97 31,205,815
25,000,000 Bear Stearns Companies, Inc., 5.405%
variable rate, due 10/22/97 25,000,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
READY CASH INVESTMENT FUND (continued)
- -----------------------------------------------------------------
25,000,000 Bear Stearns Companies, Inc., 5.525%
variable rate, due 3/15/01(b) $ 25,000,000
10,000,000 Beta Finance, Inc., 5.79%, due
8/13/97(a) 10,011,775
10,000,000 CS First Boston, Inc., 5.6625% variable
rate, due 9/15/00(b) 10,000,000
10,750,000 General Electric Capital Corporation,
7.82%, due 1/20/97 10,780,798
10,000,000 IBM Credit Corporation, 5.00%, due
2/28/97 9,978,187
20,000,000 Merrill Lynch & Company, Inc., 5.375%
variable rate, due 3/14/97 20,000,000
30,000,000 Morgan Stanley Group, Inc., 5.725%
variable rate, due 3/15/01(b) 30,000,000
25,000,000 Morgan Stanley Group, Inc., 5.60%
variable rate, due 5/15/01(b) 25,000,000
9,000,000 NationsBank Corporation, 7.50%, due
2/15/97 9,040,481
10,000,000 PepsiCo, Inc., 7.75%, due 2/28/97 10,061,257
15,000,000 Restructured Asset Certificaties, Series
1996 MM-2-2, 5.65% variable rate, due
1/10/00(a)(b) 15,000,000
10,000,000 Sony Capital Corporation, 7.27%, due
2/14/97 10,041,474
25,000,000 Structured Product Asset Return
Certificate Trusts, Series 96-12,
5.475% variable rate, due 10/22/97(a) 25,000,000
10,000,000 Toyota Motor Credit Corporation, 5.00%,
due 2/26/97 9,997,317
--------------
TOTAL CORPORATE NOTES 373,117,048
--------------
</TABLE>
[LOGO]
See Notes to Financial Statements.
19
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
-----------------------------------------------------------------
READY CASH INVESTMENT FUND (continued)
-----------------------------------------------------------------
MUNICIPAL BONDS & NOTES (0.9%)
16,000,000 New York, NY, Series B12, Bayerische
Landesbank Girozentrale LOC, 5.80%,
due 1/15/97 $ 16,000,000
--------------
TOTAL MUNICIPAL BONDS & NOTES 16,000,000
--------------
TIME DEPOSITS (6.2%)
26,000,000 Banca Commerciale Italiana Spa Canada,
Toronto, 5.8125%, due 12/2/96 26,000,000
26,000,000 Bank of Tokyo-Mitsubishi, Ltd., 5.75%,
due 12/2/96 26,000,000
32,000,000 Banque Bruxelles Lambert, 5.625%, due
12/2/96 32,000,000
24,674,299 Sanwa Bank, Ltd., 5.75%, due 12/2/96 24,674,299
--------------
TOTAL TIME DEPOSITS 108,674,299
--------------
OTHER INVESTMENTS (1.4%)
15,000,000 American General Finance Inc., Master
Note 15,000,000
10,000,000 General Electric Company, Master Note 10,000,000
--------------
TOTAL OTHER INVESTMENTS 25,000,000
--------------
TOTAL INVESTMENTS (100.0%) $1,739,323,536
--------------
--------------
-----------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND
-----------------------------------------------------------------
ALASKA (2.1%)
2,110,000 Alaska State Housing Finance
Corporation, Housing Revenue Bonds,
Series A, MBIA insured, 3.75%, due
6/1/97 $ 2,110,000
12,000,000 Alaska State Housing Finance
Corporation, Housing Revenue Bonds,
Series C, 3.60% variable rate, due
6/1/26(b) 12,000,000
--------------
TOTAL ALASKA 14,110,000
--------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
-----------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
-----------------------------------------------------------------
ARIZONA (0.6%)
4,400,000 Chandler, AZ, Industrial Development
Revenue Bonds, Parsons Municipal
Services, Inc., National Westminster
Bank, USA LOC, 3.60% variable rate,
due 12/15/09(b) $ 4,400,000
--------------
TOTAL ARIZONA 4,400,000
--------------
ARKANSAS (0.5%)
2,500,000 Arkansas State Development Finance
Authority, Single Family Mortgage
Revenue Bonds, Mortgage Backed
Securities, Series G, 3.70%, due
7/1/17, mandatory put 11/5/97 at 100 2,500,000
1,000,000 Little Rock, AR, Industrial Development
Revenue Bonds, guaranteed by CPC
International, 5.28% variable rate,
due 12/1/03(b) 1,000,000
--------------
TOTAL ARKANSAS 3,500,000
--------------
CALIFORNIA (4.0%)
3,000,000 California School Cash Reserve Program
Authority, Educational Facilities
Revenue Notes, Series A, MBIA insured,
4.75%, due 7/2/97 3,015,094
5,000,000 California School Cash Reserve Program
Authority, Educational Facilities
Revenue Notes, Series B, 4.50%, due
12/19/97 5,029,750
</TABLE>
[LOGO]
See Notes to Financial Statements.
20
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
-----------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
-----------------------------------------------------------------
2,500,000 California Statewide Communities,
Multi-Family Housing Revenue Bonds,
Whispering Winds Apartment, Series A,
guaranteed by Continental Casualty,
3.75% variable rate, due 12/1/22(b) $ 2,500,000
3,000,000 Cotati-Rohnert Park, CA, Unified School
District, Educational Facilities
Revenue Notes, 4.50%, due 8/13/97 3,010,020
855,000 Exeter, CA, Unified Elementary School
District, Educational Facilities
Revenue Bonds, 4.00%, due 11/25/97 857,019
3,200,000 Kern, CA, Community College, Educational
Facilities Revenue Bonds, Union Bank
of California LOC, 4.05% variable
rate, due 1/1/25(b) 3,200,000
9,800,000 Pomona, CA, Redevelopment Agency,
Multi-Family Housing Revenue Bonds,
Mercury Savings & Loan LOC, 4.30%
variable rate, due 12/1/07(b) 9,800,000
--------------
TOTAL CALIFORNIA 27,411,883
--------------
COLORADO (1.2%)
1,600,000 Arapahoe County, CO, Industrial
Development Revenue Bonds, Jet Center,
Inc. Project, guaranteed by Raytheon
Company, 4.95% variable rate, due
8/1/13(b) 1,600,000
2,930,000 Colorado Health Facilities Authority
Revenue Bonds, Valley View Hospital
Association Project, Fuji Bank Ltd.
LOC, 4.15% variable rate, due
10/1/12(b) 2,930,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
-----------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
-----------------------------------------------------------------
3,000,000 Colorado Housing Finance Authority,
Multi-Family Housing Revenue Bonds,
St. Moritz, Series H, FNMA Collateral
LOC, 3.65% variable rate, due
10/12/16(b) $ 3,000,000
1,000,000 Douglas County, CO, School District NO
RE 1 Douglas & Elbert Counties,
Educational Facilities Revenue Bonds,
Series D, 7.25%, due 12/1/96 1,000,000
--------------
TOTAL COLORADO 8,530,000
--------------
CONNECTICUT (0.4%)
3,000,000 Connecticut State Development Authority,
Industrial Develepment Revenue Bonds,
guaranteed by General Accident
Insurance, 3.64%, due 12/1/13(b) 3,000,000
--------------
TOTAL CONNECTICUT 3,000,000
--------------
FLORIDA (7.8%)
3,200,000 Atlantic Beach, FL, Fleet Landing,
Health Care Revenue Bonds, Series B,
Barnett Bank LOC, 4.15% variable rate,
due 10/1/24(b) 3,200,000
5,770,000 Dade County, FL, Housing Finance
Authority, Multi-Family Mortgage
Revenue Bonds, Cutler Club Apartment
Project, Series J, guaranteed by John
Hancock Insurance, 3.75% variable
rate, due 2/1/05(b) 5,770,000
</TABLE>
[LOGO]
See Notes to Financial Statements.
21
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
-----------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
-----------------------------------------------------------------
2,000,000 Dade County, FL, Industrial Development
Revenue Bonds, guaranteed by Automatic
Data Processing, Inc., 4.00% variable
rate, 11/15/17(b) $ 2,000,000
5,545,000 Dade County, FL, Multi-Family Housing
Revenue Bonds, La Hacienda Apartments,
guaranteed by John Hancock Insurance,
Series I, 3.75% variable rate, due
2/1/05(b) 5,545,000
3,700,000 Dade County, FL, Multi-Family Housing
Revenue Bonds, Mayan Tower & Villa,
Series M, guaranteed by John Hancock
Insurance, 3.75% variable rate, due
12/1/29(b) 3,700,000
1,200,000 Florida Housing Finance Agency,
Multi-Family Housing Revenue Bonds,
1984 Project, Series A, Wells Fargo
Bank LOC, 3.75% variable rate, due
4/1/07(b) 1,200,000
6,870,000 Florida Housing Finance Agency,
Multi-Family Housing Revenue Bonds,
Buena Vista Project, guaranteed by New
England Mutual Life, 3.60% variable
rate, due 11/1/07(b) 6,870,000
8,120,000 Florida Housing Finance Agency,
Multi-Family Housing Revenue Bonds,
Country Club Project, Bankers Trust
LOC, 4.15% variable rate, due
12/1/07(b) 8,120,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
-----------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
-----------------------------------------------------------------
1,710,000 Florida Housing Finance Agency,
Multi-Family Housing Revenue Bonds,
South Trust Alabama LOC, 3.70%
variable rate, due 6/1/07(b) $ 1,710,000
1,600,000 Hillsborough County, FL, Industrial
Development Authority, Port Facilities
Revenue Bonds, Seaboard System
Railroad, Inc. Project, National Bank
Detroit LOC, 3.60% variable rate, due
10/15/99(b) 1,600,000
10,000,000 Laurel Club Certificate Trust,
Certificate of Participation 1996,
Series A, Suisse Bank LOC, 4.30%
variable rate, due 6/1/25(b) 10,000,000
1,050,000 Orange County, FL, Housing Finance
Authority, Multi-Family Guaranteed
Mortgage Revenue Refunding Bonds,
Sundown Association II, Series B,
Fleet Bank LOC, 3.60% variable rate,
due 6/1/04(b) 1,050,000
2,400,000 Putnam County, FL, Development
Authority, Pollution Control Revenue
Bonds, Seminole Electric H-3 Project,
National Rural Utilities Finance LOC,
3.80% variable rate, due 3/15/14(b) 2,400,000
--------------
TOTAL FLORIDA 53,165,000
--------------
GEORGIA (2.5%)
2,595,000 Fulton County, GA, Industrial
Development Revenue Bonds, guaranteed
by Automatic Data Processing, Inc.,
3.60% variable rate, due 9/1/12(b) 2,595,000
</TABLE>
[LOGO]
See Notes to Financial Statements.
22
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
-----------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
-----------------------------------------------------------------
3,000,000 Fulton County, GA, Residential Care
Facilities, Health Care Revenue Bonds,
Lenbrook Square Foundation, Rabobank
Nederland LOC, 3.80% variable rate,
due 10/1/18(b) $ 3,000,000
5,860,000 Georgia State, General Obligation Bonds,
Series A, 4.50%, due 4/1/97 5,880,648
5,500,000 Marietta, GA, Multi-Family Housing
Revenue Bonds, Falls at Bells Ferry,
Guardian Savings & Loan LOC, 3.55%,
due 1/15/09, mandatory put 1/15/97 at
100 5,500,000
--------------
TOTAL GEORGIA 16,975,648
--------------
HAWAII (4.3%)
1,990,000 Hawaii State Department of Budget &
Finance, Special Purpose Mortgage
Revenue Bonds, Kuakini Medical Center
Project, Bank of Hawaii LOC, 3.55%
variable rate, due 7/1/04(b) 1,990,000
7,700,000 Hawaii State Department of Budget &
Finance, Special Purpose Mortgage
Revenue Bonds, G.N. Wilcox Memorial
Hospital Project, Fuji Bank Ltd., NY
LOC, 3.90% variable rate, due
7/1/18(b) 7,700,000
8,300,000 Hawaii State Housing Finance &
Development Corporation, Multi-Family
Housing Revenue Bonds, Industrial Bank
of Japan LOC, 3.60% variable rate, due
7/1/25(b) 8,300,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
-----------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
-----------------------------------------------------------------
5,300,000 Hawaii State Housing, Multi-Family
Housing Revenue Bonds, Series A,
Industrial Bank of Japan LOC, 3.60%
variable rate, due 7/1/25(b) $ 5,300,000
5,000,000 Hawaii State, General Obligation Bonds,
Series CC, 4.10%, due 2/1/97 5,005,117
850,000 Kauai County, HI, General Obligation
Bonds, MBIA insured, 6.60%, due
2/1/04, prerefunded 2/1/97 at 100 854,046
--------------
TOTAL HAWAII 29,149,163
--------------
IDAHO (0.7%)
5,000,000 Idaho Health Facilities Authority
Revenue Bonds, St. Lukes Regional
Medical Center Project, Credit Suisse
LOC, 4.10% variable rate, due
5/1/22(b) 5,000,000
--------------
TOTAL IDAHO 5,000,000
--------------
ILLINOIS (14.1%)
1,000,000 Bedford Park, IL, Industrial Development
Revenue Bonds, guaranteed by CPC
International, 5.28% variable rate,
due 11/1/08(b) 1,000,000
2,500,000 Chicago, IL, General Obligation Bonds,
Series B, U.S. Government Securities
Collateralized, 9.25%, due 1/1/13,
prerefunded 7/1/97 at 102 2,629,250
3,000,000 Chicago, IL, General Obligation Bonds,
Tender Notes, Landesbank Hessen, NY
LOC, 3.10%, due 1/31/98, mandatory put
2/4/97 at 100 2,996,082
</TABLE>
[LOGO]
See Notes to Financial Statements.
23
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
-----------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
-----------------------------------------------------------------
5,000,000 Chicago, IL, Metropolitan Water, General
Obligation Refunding Bonds, 4.00%, due
12/1/96 $ 5,000,000
3,885,000 Cook County, IL, Municipal Trust
Receipts, Series SG-7, MBIA insured,
3.65% variable rate, due 11/15/23(b) 3,885,000
1,000,000 Cook & Lake Counties, IL, Northwest
Water Communities, Power Revenue
Bonds, MBIA insured, 6.50%, due
5/1/12, prerefunded 5/1/97 at 102 1,031,585
1,000,000 Illinois Development Finance Authority
Revenue Bonds, guaranteed by CPC
International, 5.28% variable rate,
due 9/1/97 1,000,000
915,000 Illinois Development Finance Authority
Revenue Bonds, North Wacker Drive,
4.10% variable rate, due 12/1/15(b) 915,000
5,000,000 Illinois Development Finance Authority
Revenue Bonds, Supervalu, Inc.
Project, Wachovia Corporation LOC,
3.75% variable rate, due 2/1/01(b) 5,000,000
5,000,000 Illinois Development Finance Authority,
Health Care Revenue Bonds, American
College Surgeons, Northern Trust
Corporation LOC, 3.55% variable rate,
due 7/1/26(b) 5,000,000
10,000,000 Illinois Development Finance Authority,
Multi-Family Housing Revenue Bonds,
Garden Glen Apartments, guaranteed by
Continental Casualty Company, 3.90%
variable rate, due 12/1/13(b) 10,000,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
-----------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
-----------------------------------------------------------------
5,000,000 Illinois Educational Facilities
Authority, Educational Facilities
Revenue Bonds, Arts Club of Chicago,
Northern Trust LOC, 3.55% variable
rate, due 1/1/26(b) $ 5,000,000
5,000,000 Illinois Health Facilities Authority
Revenue Bonds, Evanston Hospital
Corporation, 3.95% variable rate, due
8/15/30, mandatory put 8/15/97 at 100 5,000,000
5,000,000 Illinois Health Facilities Authority
Revenue Bonds, Evanston Hospital
Corporation, Series A, 3.85%, due
3/15/25, mandatory put 10/15/97 at 100 5,000,000
12,000,000 Illinois Health Facilities Authority
Revenue Bonds, Evanston Hospital
Corporaton, Series B, 3.15% variable
rate, due 8/15/15, mandatory put
1/31/97 at 100 12,000,000
7,000,000 Illinois Health Facilities Authority
Revenue Bonds, Proctor Hospital, 3.55%
variable rate, due 1/1/12(b) 7,000,000
2,100,000 Illinois Health Facilities Authority
Revenue Bonds, Condell Memorial
Hospital, Bank of Tokyo LOC, 3.75%
variable rate, due 11/1/05(b) 2,100,000
2,420,000 Illinois Housing Development Authority,
Housing Revenue Bonds, Homeowner
Mortgage, Subseries C-1, 3.65%, due
2/1/14(b) 2,420,000
</TABLE>
[LOGO]
See Notes to Financial Statements.
24
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
-----------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
-----------------------------------------------------------------
3,540,000 Illinois Housing Development Authority,
Housing Revenue Bonds, Homeowner
Mortgage, Subseries E-1, 3.65%, due
8/1/17(b) $ 3,540,000
6,800,000 Lombard, IL, Industrial Development
Revenue Bonds, 2500 Highland Avenue,
Mid-America Federal Savings & Loan
LOC, 4.05% variable rate, due
12/1/06(b) 6,800,000
4,680,000 Palatine, IL, Multi-Family Housing
Revenue Bonds, Hamilton Place Project,
Concordia & Elmhurst Federal Savings &
Loan LOC, 3.80% variable rate, due
12/1/08(b) 4,680,000
4,100,000 Springfield, IL, Transportation Revenue
Bonds, guaranteed by Allied Signal,
3.70% variable rate, due 10/15/16(b) 4,100,000
--------------
TOTAL ILLINOIS 96,096,917
--------------
INDIANA (1.6%)
5,000,000 Fort Wayne, IN, Community Schools,
Educational Facilities Revenue Bonds,
3.75%, due 12/31/96 5,000,523
4,000,000 Indiana Bond Bank Notes, Advance Funding
Program, 4.25%, due 1/9/97 4,003,018
1,750,000 Indiana Bond Bank Notes, Reassessment
Assistance Notes, Series B, 4.50%, due
1/30/97 1,751,648
--------------
TOTAL INDIANA 10,755,189
--------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
-----------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
-----------------------------------------------------------------
IOWA (5.6%)
3,800,000 Algona, IA, Industrial Development
Revenue Bonds, George A. Hormel &
Company Project, Sumitomo Bank Ltd.
LOC, 3.70% variable rate, due
5/1/05(b) $ 3,800,000
4,600,000 Des Moines, IA, Industrial Development
Revenue Bonds, Grand Office Park,
guaranteed by Principal Mutual Life,
3.90% variable rate, due 4/1/15(b) 4,600,000
1,130,000 Iowa Finance Authority, Single Family
Mortgage Revenue Bonds, Series A, FGIC
insured, 3.10% variable rate, due
7/1/10, mandatory put 2/27/97 at 100 1,130,000
530,000 Iowa Finance Authority, Single Family
Mortgage Revenue Bonds, Series A, FGIC
insured, 3.10% variable rate, due
7/1/16, mandatory put 2/27/97 at 100 530,000
9,020,000 Iowa School Corporations, Educational
Facilities Revenue Bonds, Warrants
Certificates, Series B, 4.25% variable
rate, due 1/30/97 9,032,144
4,500,000 Iowa School Corporations, Educational
Facilities Revenue Municipal Notes,
Warrants Certificates, Series A,
4.75%, due 6/27/97 4,519,624
</TABLE>
[LOGO]
See Notes to Financial Statements.
25
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
-----------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
-----------------------------------------------------------------
4,000,000 Urbandale, IA, Industrial Development
Revenue Bonds, Aurora Business Park
Association Project, guaranteed by
Principal Mutual Life Insurance, 3.90%
variable rate, due 10/1/15(b) $ 4,000,000
6,000,000 Urbandale, IA, Industrial Development
Revenue Bonds, Interstate Acres L.P.
Project, guaranteed by Principal
Mutual Life Insurance, 3.75% variable
rate, due 12/1/14(b) 6,000,000
4,605,000 Urbandale, IA, Industrial Development
Revenue Bonds, Meredith Drive
Association Project, guaranteed by
Principal Mutual Life Insurance, 3.90%
variable rate, due 11/1/15(b) 4,605,000
--------------
TOTAL IOWA 38,216,768
--------------
KANSAS (0.2%)
1,200,000 Prairie Village, KS, Multi-Family
Housing Revenue Bonds, J.C. Nichols
Company Project, guaranteed by
Principal Mutual Life Insurance, 3.90%
variable rate, due 12/1/15(b) 1,200,000
--------------
TOTAL KANSAS 1,200,000
--------------
KENTUCKY (0.7%)
4,200,000 Kentucky Economic Development Finance
Authority, Health Care Revenue Bonds,
Sisters of Charity, 4.10% variable
rate, due 11/1/20(b) 4,200,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
-----------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
-----------------------------------------------------------------
300,000 Kentucky State Turnpike Authority,
Resource Recovery Revenue, 13.125%,
due 7/1/09, prerefunded 7/1/97 at 100 $ 315,802
--------------
TOTAL KENTUCKY 4,515,802
--------------
LOUISIANA (2.0%)
3,050,000 Bossier Parish, LA, Industrial
Development Board, Inc., Economic
Development Revenue Bonds, H.J.
Wilson, Inc. Project, Canadian
Imperial Bank LOC, 4.00% variable
rate, due 12/1/07, mandatory put
12/1/96 at 100 3,050,000
3,200,000 Caddo Parish, LA, Industrial Development
Board, Pollution Control Revenue
Bonds, Pennzoil Company Project,
Mellon Bank LOC, 3.85% variable rate,
due 12/1/12(b) 3,200,000
4,615,000 Louisiana Public Facilities Authority,
Hospital Equipment Revenue Refunding
Bonds, Series A, Sumitomo Bank Ltd.
LOC, 3.85% variable rate, due
12/1/05(b) 4,615,000
2,500,000 Plaquemines, LA, Port Harbor & Term
District Port Facilities Revenue,
guaranteed by Chevron Pipe Line
Company, 3.85%, due 9/1/08(b) 2,500,000
--------------
TOTAL LOUISIANA 13,365,000
--------------
MARYLAND (3.2%)
7,500,000 Baltimore, MD, Industrial Development
Revenue Bonds, Dai-Ichi Kangyo Ltd.
LOC, 3.70% variable rate, due
8/1/16(b) 7,500,000
</TABLE>
[LOGO]
See Notes to Financial Statements.
26
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
-----------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
-----------------------------------------------------------------
3,500,000 Howard County, MD, Multi-Family Housing
Revenue Bonds, Sherwood Crossing
Limited Project, Guardian Savings &
Loan LOC, 3.75% variable rate, due
6/1/08, mandatory put 6/1/97 at 100 $ 3,500,000
2,500,000 Maryland State, Industrial Authority
Economic Development Revenue Bonds,
Johnson Controls, Inc., 3.75% variable
rate, due 12/1/03(b) 2,500,000
1,245,000 Montgomery County, MD, General
Obligation Bonds, Series A, 7.30%, due
4/1/97 1,260,091
6,900,000 Montgomery County, MD, Housing
Opportunities Commission, Multi-Family
Housing Revenue Refunding Bonds, Issue
I, guaranteed by Commonwealth Life,
3.70% variable rate, due 11/1/20(b) 6,900,000
--------------
TOTAL MARYLAND 21,660,091
--------------
MASSACHUSETTS (0.4%)
2,500,000 Massachusetts State, General Obligation
Bonds, Series A, 4.25%, due 6/10/97 2,506,889
--------------
TOTAL MASSACHUSETTS 2,506,889
--------------
MICHIGAN (0.4%)
2,500,000 Bruce TWP, MI, Hospital Finance
Authority, Health Care Revenue Bonds,
Sisters Charity St. Joseph, Series A,
MBIA insured, 3.65% variable rate, due
5/1/18(b) 2,500,000
--------------
TOTAL MICHIGAN 2,500,000
--------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
-----------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
-----------------------------------------------------------------
MINNESOTA (7.2%)
3,245,000 Alberta Lea, MN, Independent School
District, General Obligation Tax
Anticipation Notes, 3.625%, due
3/28/97 $ 3,248,744
10,000,000 Duluth, MN, Health Facilities Revenue
Bonds, Miller-Dwan Medical Center,
Credit Local de France, LOC, 4.10%
variable rate, due 6/1/19(b) 10,000,000
2,105,000 Little Falls, MN, Independent School
District #482, General Obligation
Bonds, 3.625%, due 3/21/97 2,106,791
2,900,000 Maple Grove, MN, Multi-Family Housing
Revenue Bonds, Eagle Ridge Apartments,
Sumitomo Bank Ltd. LOC, Series A,
3.70% variable rate, due 6/1/26(b) 2,900,000
4,355,000 Mendota Heights, MN, Multi-Family
Housing Revenue Refunding Bonds,
Lexington Heights Apartment Project,
Series 1991 A, Sumitomo Bank Ltd. LOC,
3.85% variable rate, due 11/1/25(b) 4,355,000
5,285,000 Minnesota School Districts Tax & Aid
Anticipation Borrowing Program
Certificates, Educational Facilities
Revenue Notes, Minnesota School
District Credit Enhancement, Series B,
4.50%, due 9/9/97 5,310,099
7,045,000 Minnesota School Districts Tax & Aid
Anticipation, Certificates of
Participation, Series 1996 B, 4.00%,
due 3/14/97 7,059,292
</TABLE>
[LOGO]
See Notes to Financial Statements.
27
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
-----------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
-----------------------------------------------------------------
770,000 Minnesota State Housing Finance Agency,
Single-Family Housing Revenue Bonds,
3.50% variable rate, due 7/1/25,
mandatory put 12/12/96 at 100 $ 770,000
800,000 Moorhead, MN, Industrial Development
Revenue Refunding Demand Bonds,
SuperValu Store Project, Wachovia Bank
LOC, 3.55% variable rate, due
11/1/09(b) 800,000
4,395,000 Spring Lake Park, MN, Independent School
District #16, General Obligation
Bonds, 3.50%, due 3/31/97 4,397,072
4,600,000 St. Louis Park, MN, Industrial
Development Revenue Bonds, Unicare
Homes, Inc., Project, Banque Paribas
LOC, 3.65% variable rate, due
8/1/14(b) 4,600,000
1,215,000 St. Paul, MN, General Obligation Bonds,
Capital Improvement Project, Series A,
4.00%, due 3/1/97 1,216,435
2,300,000 St. Paul, MN, Housing & Redevelopment
Authority, Utilities Revenue Bonds,
Sumitomo Bank Ltd. LOC, 3.70% variable
rate, due 12/1/12(b) 2,300,000
--------------
TOTAL MINNESOTA 49,063,433
--------------
MISSOURI (4.7%)
2,655,000 Dunklin County, MO, Industrial
Development Revenue Refunding Bonds,
National HealthCorp Project, Bank of
Tokyo Ltd. LOC, 3.90% variable rate,
due 12/1/10(b) 2,655,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
-----------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
-----------------------------------------------------------------
13,975,000 Kansas City, MO, Industrial Development
Authority, Multi-Family Housing
Revenue Bonds, Coach House II Project,
guaranteed by Principal Mutual Life
Insurance, 3.90% variable rate, due
12/1/15(b) $ 13,975,000
2,200,000 Kansas City, MO, Industrial Development
Authority, Multi-Family Housing
Revenue Bonds, JC Nichols Company
Project, guaranteed by Principal
Mutual Life Insurance, 3.90% variable
rate, due 5/1/15(b) 2,200,000
3,000,000 Missouri State Environmental Improvement
& Energy Resources Authority,
Pollution Control Revenue Bonds, Union
Electric Company, Series B, Union Bank
of Switzerland LOC, 3.65% variable
rate, due 6/1/14, optional put 6/1/97
at 100 3,000,000
5,000,000 Missouri State Health & Educational
Facilities Revenue Bonds, St. Francis
Medical Center, Series A, Credit Local
de France LOC, 4.10% variable rate,
due 6/1/26(b) 5,000,000
3,400,000 St. Louis, MO, Industrial Development
Authority, Multi-Family Housing
Revenue Bonds, Cedar Run Apartments
Project, 3.75% variable rate, due
2/1/07(b) 3,400,000
</TABLE>
[LOGO]
See Notes to Financial Statements.
28
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
-----------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
-----------------------------------------------------------------
2,000,000 University of Missouri, Capital Project
Notes, Educational Facilities Revenue
Bonds, Series 1996-1997, 4.75%, due
6/30/97 $ 2,009,633
--------------
TOTAL MISSOURI 32,239,633
--------------
MONTANA (0.5%)
3,500,000 Montana State Board of Investments,
Revenue Bonds, Adjustable Municipal
Construction Act-Intercap, 3.35%
variable rate, due 3/1/97 3,500,000
--------------
TOTAL MONTANA 3,500,000
--------------
NEW JERSEY (1.4%)
7,300,000 New Jersey Economic Development
Authority, 4.05% variable rate, due
11/01/26(b) 7,300,000
2,240,981 Seaside Heights, NJ, Bond Anticipation
Notes, 3.625%, due 2/21/97 2,242,271
--------------
TOTAL NEW JERSEY 9,542,271
--------------
NEW MEXICO (1.0%)
2,500,000 Bloomfield, NM, General Obligation
Revenue Bonds, Series A, La Salle
National Bank LOC, 3.70% variable
rate, due 11/15/10(b) 2,500,000
2,760,000 Espanola, NM, Health Care Revenue Bonds,
Series A, La Salle National Bank LOC,
3.70% variable rate, due 11/15/10(b) 2,760,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
-----------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
-----------------------------------------------------------------
1,735,000 Silver City, NM, General Obligation
Bonds, Series A, La Salle National
Bank LOC, 3.75% variable rate, due
11/15/10(b) $ 1,735,000
--------------
TOTAL NEW MEXICO 6,995,000
--------------
NEW YORK (2.2%)
3,200,000 County of Westchester, NY, Industrial
Development Revenue Bonds, 4.00%
variable rate, due 7/1/98(b) 3,200,000
4,300,000 New York State Dormitory Authority
Revenue Bonds, St. Francis Center at
the Knolls, 4.00% variable rate, due
7/1/23(b) 4,300,000
7,500,000 New York State Energy, Research &
Development Authority, Pollution
Control Revenue Bonds, 3.25% variable
rate, due 3/1/16(b) 7,500,000
--------------
TOTAL NEW YORK 15,000,000
--------------
NORTH CAROLINA (0.4%)
3,000,000 Person County, NC, Industrial Facilities
& Pollution Control Financing
Authority, Pollution Control Revenue
Bonds, guaranteed by Carolina Power &
Light Company, 3.65% variable rate,
due 11/1/19(b) 3,000,000
--------------
TOTAL NORTH CAROLINA 3,000,000
--------------
</TABLE>
[LOGO]
See Notes to Financial Statements.
29
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
-----------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
-----------------------------------------------------------------
OHIO (2.1%)
5,200,000 Hamilton County, OH, Industrial
Development Revenue Bonds, Community
Urban Redevelopment Project, National
Westminster LOC, 3.60% variable rate,
due 10/15/12(b) $ 5,200,000
5,000,000 Ohio State, Industrial Development
Revenue Bonds, U.S. Steel Corporation,
Sanwa Bank Ltd. LOC, 3.70% variable
rate, due 5/1/11(b) 5,000,000
4,400,000 Wooster, OH, Industrial Development
Revenue Bonds, Allen Group, Inc.,
National Bank of Detroit LOC, 3.75%
variable rate, due 12/1/10(b) 4,400,000
--------------
TOTAL OHIO 14,600,000
--------------
OKLAHOMA (0.4%)
1,000,000 Grand River Dam Authority, OK, Utilities
Revenue Refunding Bonds, 6.70%, due
6/1/00, prerefunded 6/1/97 at 102 1,033,613
570,000 Norman, OK, Regional Hospital Authority,
Health Care Revenue Bonds, Series A,
MBIA insured, 3.85%, due 9/1/97 570,000
1,400,000 Oklahoma County, Industrial Development
Revenue Bonds, Carbon Office, FGIC
insured, 4.05% variable rate, due
12/1/14(b) 1,400,000
--------------
TOTAL OKLAHOMA 3,003,613
--------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
-----------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
-----------------------------------------------------------------
OREGON (0.2%)
1,338,000 Salem, OR, General Obligation Bonds,
Pedestrian Safety Improvements, FGIC
insured, 7.00%, due 5/1/97 $ 1,355,636
--------------
TOTAL OREGON 1,355,636
--------------
PENNSYLVANIA (1.6%)
1,000,000 Berks County, PA, Industrial Development
Revenue Bonds, guaranteed by CNA
Insurance, 3.70% variable rate, due
7/1/16(b) 1,000,000
1,100,000 Butler County, PA, Industrial
Development Authority, Pollution
Control Revenue Bonds, Pennzoil
Company Project, Mellon Bank LOC,
3.85% variable rate, due 12/1/12(b) 1,100,000
4,890,000 Chartiers Valley, PA, Industrial &
Commercial Development Authority,
Industrial Development Revenue Bonds,
guaranteed by Automatic Data
Processing, Inc., 4.00% variable rate,
due 11/15/17(b) 4,890,000
120,000 Conshohocken Board Authority, PA,
Utilities Revenue Bonds, AMBAC
insured, 3.75%, due 11/1/97 119,925
2,000,000 Delaware County, PA, Industrial
Development Revenue Bonds, Series G,
General Electric LOC, 4.25% variable
rate, due 12/1/13, mandatory put
12/1/96 at 100 2,000,000
</TABLE>
[LOGO]
See Notes to Financial Statements.
30
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
-----------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
-----------------------------------------------------------------
2,000,000 Pennsylvania Intergovernmental Coop
Authority, Special Tax Revenue Bonds,
Philadelphia Funding Project, 5.00%,
due 6/15/97 $ 2,013,450
--------------
TOTAL PENNSYLVANIA 11,123,375
--------------
RHODE ISLAND (0.5%)
1,000,000 Rhode Island Port Authority & Economic
Development Corporation, Industrial
Development Revenue Bonds, Raytheon
Project, 4.95% variable rate, due
6/1/13(b) 1,000,000
2,695,000 Rhode Island State, General Obligation
Bonds, MBIA insured, 5.00%, due 8/1/97 2,719,178
--------------
TOTAL RHODE ISLAND 3,719,178
--------------
SOUTH CAROLINA (2.8%)
5,000,000 City of Charleston, SC, Tax Anticipation
Notes, 3.60%, due 3/14/97 5,001,352
8,355,000 South Carolina State, Public Service
Authority Revenue Bonds, Series SG-2,
MBIA insured, 3.65% variable rate, due
7/1/21(b) 8,355,000
3,000,000 York County, SC, Pollution Control
Revenue Bonds, North Carolina Electric
Project, CFC insured, 3.80%, due
9/15/14, optional put 3/17/97 at 100 3,000,000
3,000,000 York County, SC, Pollution Control
Revenue Bonds, Saluda River Electric
Coop, Pooled Series 84E-1, National
Rural Utilities LOC, 3.65%, due
8/15/14, optional put 2/15/97 at 100 3,000,000
--------------
TOTAL SOUTH CAROLINA 19,356,352
--------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
-----------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
-----------------------------------------------------------------
SOUTH DAKOTA (0.7%)
5,000,000 South Dakota School District, Cash Flow
Financing Program, Educational
Facilities Revenue Bonds, Certificates
of Participation, 4.75%, due 7/28/97 $ 5,025,068
--------------
TOTAL SOUTH DAKOTA 5,025,068
--------------
TENNESSEE (0.2%)
1,300,000 Metropolitan Nashville Airport Authority
Special Facilities Revenue Bonds,
American Airlines Project, Series A,
Credit Suisse LOC, 3.95% variable
rate, due 10/1/12(b) 1,300,000
--------------
TOTAL TENNESSEE 1,300,000
--------------
TEXAS (7.8%)
1,000,000 Abilene Texas Higher Education Authority
Inc., Educational Facilities Revenue
Bonds, Series A, Guaranteed by BIG,
7.50%, due 7/1/97 1,020,248
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,
3.65% variable rate, due 6/1/05(b) 4,950,000
1,160,000 Birdville, TX, Independent School
District, General Obligation Bonds,
Permanent School Fund, 6.00%, due
2/15/97 1,166,586
</TABLE>
[LOGO]
See Notes to Financial Statements.
31
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
-----------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
-----------------------------------------------------------------
1,000,000 Dallas County Texas Community College
District, General Obligation Bonds,
Asbestos Removal Tax Notes, 4.80%, due
2/15/97 $ 1,002,171
3,540,000 Harris County, TX, General Obligation
Bonds, FGIC insured, 0.00% (3.801%
effective yield), due 8/15/97 3,447,909
15,000,000 Harris County, TX, Health Care
Facilities Revenue Bonds, 3.90%
variable rate, due 12/1/25, mandatory
tender 12/1/98 at 100 15,000,000
3,895,000 Harris County, TX, Housing Finance
Corporation, Mutli-Family Housing
Revenue Bonds, Arbor II Limited
Project, Guardian Savings & Loan LOC,
4.15%, due 10/1/05, optional put
10/1/97 at 100 3,895,000
1,250,000 Lower Neches Valley Authority, TX,
Industrial Development Revenue Bonds,
Chevron USA, Inc. Project, guaranteed
by Chevron Corporation, 3.65%, due
2/15/17, optional put 2/18/97 1,250,000
5,895,000 Sabine River, TX, Industrial Development
Authority, Pollution Control Revenue
Bonds, Series 84Q, National Rural
Utilities LOC, 3.65%, due 8/15/14,
optional put 2/15/97 at 100 5,895,000
15,330,000 State of Texas, Sales Tax Revenue Notes,
Tax & Anticipation Notes, 4.75%, due
8/29/97 15,416,782
--------------
TOTAL TEXAS 53,043,696
--------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
-----------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
-----------------------------------------------------------------
UTAH (1.0%)
1,000,000 Intermountain Power Agency, UT, Power
Supply Revenue Bonds, Series A, 7.00%,
due 7/1/06, prerefunded 1/1/97 at 102 $ 1,022,535
3,000,000 Intermountain Power Agency, UT, Power
Supply Revenue Bonds, Series F, Swiss
Bank LOC, 3.75%, due 7/1/15, optional
put 3/17/97 at 100 3,000,000
1,500,000 Intermountain Power Agency, UT, Power
Supply Revenue Bonds, Series F,
guaranteed by Morgan Guaranty, 3.93%,
due 7/1/21, optional put 6/16/97 at
100 1,500,000
1,100,000 Salt Lake County, UT, Pollution Control
Revenue Bonds, SVC Station Holdings
Project, 4.20% variable rate, due
2/1/08(b) 1,100,000
--------------
TOTAL UTAH 6,622,535
--------------
VERMONT (0.0%)
300,000 Vermont Educational & Health Buildings
Financing Agency, Educational
Facilities Revenue Bonds, Middlebury
College Project, Series A, 3.75%, due
11/1/27, optional put 11/1/97 at 100 300,000
--------------
TOTAL VERMONT 300,000
--------------
VIRGINIA (2.7%)
7,500,000 Harrisonburg, VA, Multi-Family Housing
Revenue Bonds, Rolling Brook Village
Apartments, Series A, 3.50% variable
rate, due 2/1/09, mandatory put 2/1/97
at 100 7,500,000
</TABLE>
[LOGO]
See Notes to Financial Statements.
32
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
-----------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
-----------------------------------------------------------------
11,100,000 Henrico County, VA, Industrial
Development Revenue Bonds, Hermitage
Project, NationsBank of Virginia LOC,
4.15% variable rate, due 5/1/24(b) $ 11,100,000
--------------
TOTAL VIRGINIA 18,600,000
--------------
WASHINGTON (1.2%)
1,345,000 King County, WA, School District #415,
Kent, General Obligation Bonds, 7.35%,
due 12/1/00, prerefunded 12/1/96 at
100 1,345,000
1,295,000 Washington State Health Care Facilities
Authority Revenue Bonds, Empire Health
Services of Spokane, MBIA insured,
8.735%, due 11/1/06, prerefunded
11/1/97 at 102 1,374,487
4,450,000 Washington State Health Care Facilities
Authority Revenue, Sisters Providence,
Series D, 4.00% variable rate, due
10/1/05(b) 4,450,000
1,000,000 Washington State Public Power Supply,
3.65% variable rate, due 07/01/15(b) 1,000,000
--------------
TOTAL WASHINGTON 8,169,487
--------------
WASHINGTON, D.C. (1.7%)
1,600,000 District of Columbia, Educational
Facilities Revenue Bonds, Catholic
University, Series A, Sanwa Bank Ltd.
LOC, 3.70% variable rate, due
12/1/09(b) 1,600,000
1,000,000 District of Columbia, General Obligation
Refunding Bonds, Series D, CAPMAC-ITC
LOC, 4.30%, due 12/1/96 1,000,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
-----------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
-----------------------------------------------------------------
3,000,000 District of Columbia, Supplemental
Student Loan Revenue Bonds, CONSERN
Loan Program, Bank of Toyko-Mitsubishi
Ltd. LOC, 4.33% variable rate, due
7/1/01, optional put 7/1/97 at 100 $ 3,004,696
6,000,000 Washington, DC, Hospital Revenue Bonds,
Columbia Women's Hospital, Series A,
Mitsubishi Bank Ltd. LOC, 3.70%
variable rate, due 7/1/20(b) 6,000,000
--------------
TOTAL WASHINGTON, D.C. 11,604,696
--------------
WISCONSIN (2.5%)
2,300,000 Alma, WI, Pollution Control Revenue
Bonds, Dairyland Power Cooperative
Project, Rabobank Nederland LOC, 3.65%
variable rate, due 2/1/15(b) 2,300,000
1,000,000 Beloit & Rock County, WI, Industrial
Development Revenue Bonds, guaranteed
by CPC International, 5.28% variable
rate, due 4/1/19(b) 1,000,000
1,800,000 Fort Atkinson Wisconsin School District,
General Obligation Refunding Bond,
FGIC insured, 6.00%, due 4/1/97 1,812,924
2,065,000 Johnson Controls, Inc., Tax-Exempt Bond,
Grantor Trust, Wachovia Corporation
LOC, 4.20% variable rate, due
10/1/01(b) 2,065,000
1,000,000 Middleton-Cross Plains Area, School
District Wisconsin, General Obligation
Bonds, FGIC isured, 4.875%, due 4/1/97 1,004,081
</TABLE>
[LOGO]
See Notes to Financial Statements.
33
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
-----------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (continued)
-----------------------------------------------------------------
1,115,000 Milwaukee, WI, Pollution Control Revenue
Bonds, guaranteed by Johnson Controls,
Inc., 2.60% variable rate, due 12/1/97 $ 1,115,000
4,000,000 Racine, WI, United School District,
Educational Facilities Revenue Bond,
Tax & Anticipation Promissory Note,
4.25%, due 8/22/97 4,011,101
500,000 Waukesha County, WI, General Obligation
Bonds, 5.80%, due 12/1/97, prerefunded
12/1/96 at 100 500,000
3,000,000 Waukesha, WI, School District,
Educational Facilities Revenue Bonds,
Tax & Revenue Anticipation Promissory
Note, 4.15%, due 8/22/97 3,006,246
--------------
TOTAL WISCONSIN 16,814,352
--------------
WYOMING (0.3%)
1,000,000 Green River, WY, Pollution Control
Revenue Bonds, Allied Corporation
Project, guaranteed by Allied Signal
Corporation, 4.50% variable rate, due
12/1/12(b) 1,000,000
1,350,000 Sublette County, WY, Pollution Control
Revenue, Exxon Project, Exxon
Corporation LOC, 4.15% variable rate,
due 11/1/14(b) 1,350,000
--------------
TOTAL WYOMING 2,350,000
--------------
ALL OTHER (4.6%)
2,000,000 Mashantucket, CT, Tax-Exempt Commercial
Paper, Bank of America LOC, 3.60%, due
12/6/96 2,000,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
-----------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND (concluded)
-----------------------------------------------------------------
6,000,000 Municipal Electric Authority of Georgia,
Tax-Exempt Commercial Paper, Credit
Suisse, Morgan Guaranty, Bayerische
Landesbank LOCs, 3.65%, due 12/3/96 $ 6,000,000
10,120,000 Tax-Exempt Receipts, Series PL-1, Credit
Suisse, Liquidity, 3.55% variable
rate, due 10/20/00(b) 10,120,000
4,500,000 Puttable Floating Option, Tax-Exempt
Receipts, Series PPT 4, Credit Suisse,
Liquidity, 3.60% variable rate, due
10/11/15(b) 4,500,000
8,825,000 Puttable Floating Option, Tax-Exempt
Receipts, Series PPT 5 Credit Suisse,
Liquidity, 3.75% variable rate, due
10/11/30(b) $ 8,825,000
--------------
TOTAL ALL OTHER 31,445,000
--------------
TOTAL INVESTMENTS (100.0%) $683,831,675
--------------
--------------
-----------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS
-----------------------------------------------------------------
</TABLE>
(a) Securities that may be resold to "qualified institutional buyers" under Rule
144A, or securities offered pursuant to Section 4(2) of the Securities Act
of 1933, as amended. These Securities have been determined to be liquid
under guidelines established by the Board of Trustees.
(b) Variable rate demand notes are payable upon not more than one, seven or
thirty business days notice. Put bonds and notes have demand features which
are exercisable within one year. The interest rate shown reflects the rate
in effect on the date of this report.
AMBAC American Municipal Bond Assurance Corp.
FGIC Federal Guaranty Insurance Corp.
LOC Letter of Credit
MBIA Municipal Bond Insurance Association
[LOGO]
See Notes to Financial Statements.
34
<PAGE>
Norwest Advantage Funds ---------------
733 Marquette Avenue Bulk Rate
Minneapolis, MN 55479-0040 U.S. Postage
PAID
Permit No. 3489
Mpls, MN
---------------
[LOGO] NORWEST ADVANTAGE FUNDS-SM-
Shareholder Services
Minneapolis/St. Paul 667-8833
Elsewhere 800-338-1348
Norwest Bank Minnesota, N.A.
Investment Adviser
Transfer Agent
Custodian
Forum Financial Services, Inc.
Manager and Distributor
- -C-1996 NORWEST ADVANTAGE FUNDS
MFBOA 068 1/97
This report is authorized for distribution only to shareholders and to
others who have received a copy of the prospectuses of the Norwest
Advantage Funds.
