As filed with the Securities and Exchange Commission on August 21, 1998
File Nos. 33-9645 and 811-4881
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OF 1933
Post-Effective Amendment No. 56
AND
REGISTRATION STATEMENT UNDER THE
INVESTMENT COMPANY ACT OF 1940
Amendment No. 57
NORWEST ADVANTAGE FUNDS
(Formerly "Norwest Funds" and "Prime Value Funds, Inc.")
Two Portland Square
Portland, Maine 04101
(207) 879-1900
Don L. Evans, Esq.
Forum Financial Services, Inc.
Two Portland Square
Portland, Maine 04101
Copies to:
Anthony C. J. Nuland, Esq.
Seward & Kissel
1200 G Street, N.W.
Washington, D.C. 20005
It is proposed that this filing will become effective:
[ ] immediately upon filing pursuant to Rule 485, paragraph (b)
[ ] on _______ pursuant to Rule 485, paragraph (b)
[ ] 60 days after filing pursuant to Rule 485, paragraph (a)(1)
[X] on October 1, 1998 pursuant to Rule 485, paragraph (a)(1)
[ ] 75 days after filing pursuant to Rule 485, paragraph (a)(2)
[ ] on ________ pursuant to Rule 485, paragraph (a)(2)
[ ] this post-effective amendment designates a new effective date for a
previously filed post-effective amendment ________.
Performa Strategic Value Bond Fund, Performa Disciplined Growth Fund, Performa
Small Cap Value Fund and Performa Global Growth Fund of Registrant are
structured as master-feeder funds and this amendment is also executed by Core
Trust (Delaware)and Schroder Capital Funds.
<PAGE>
CROSS REFERENCE SHEET
(As required by Rule 481(a))
(Prospectus offering Shares of Performa Strategic Value Bond Fund, Performa
Disciplined Growth Fund, Performa Small Cap Value Fund, and Performa
Global Growth Fund)
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PART A
Form N-1A Location in Prospectus
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Item No.
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Item 1. Cover Page Cover Page
Item 2. Synopsis Overview
Item 3. Condensed Financial Information Financial Highlights; Other Information
Item 4. General Description of Registrant Overview; Investment Objectives and Policies;
Other Information
Item 5. Management of the Fund Overview; Management
Item 5A. Management's Discussion of Fund Performance Not Applicable
Item 6. Capital Stock and Other Securities Cover Page; Distributions and Tax Matters; Other
Information
Item 7. Purchase of Securities Being Offered Purchases and Redemptions; Management
Item 8. Redemption or Repurchase Purchases and Redemptions of Shares
Item 9. Pending Legal Proceedings Not Applicable
</TABLE>
<PAGE>
CROSS REFERENCE SHEET
(AS REQUIRED BY RULE 481(A))
(All other Prospectuses)
PART A
Not Applicable to this Filing
<PAGE>
CROSS REFERENCE SHEET
(AS REQUIRED BY RULE 481(A))
(SAI offering Shares of Performa Strategic Value Bond Fund, Performa
Disciplined Growth Fund, Performa Small Cap Value Fund,
and Performa Global Growth Fund)
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PART B
Form N-1A Location in Statement of Additional Information
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Item No.
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Item 10. Cover Page Cover Page
Item 11. Table of Contents Table of Contents
Item 12. General Information and History Prospectus
Item 13. Investment Objectives and Other Policies Investment Policies; Investment Limitations
Item 14. Management of the Fund Management - Management and Administrative
Services; Additional Information About the Trust
and the Shareholders of the Funds
Item 15. Control Persons and Principal Holders of Additional Information About the Trust and the
Securities Shareholders of the Funds
Item 16. Investment Advisory and Other Services Management - Investment Advisory Services
Item 17. Brokerage Allocation and Other Practices Portfolio Transactions
Item 18. Capital Stock and Other Securities Additional Information About the Trust and the
Shareholders of the Fund
Item 19. Purchase, Redemption and Pricing of Additional Purchase and Redemption Information
Securities Being Offered
Item 20. Tax Status Taxation
Item 21. Underwriters Management
Item 22. Calculation of Performance Data Performance and Advertising Data
Item 23. Financial Statements Additional Information About the Trust and the
Shareholders of the Funds - Financial Statements
</TABLE>
<PAGE>
CROSS REFERENCE SHEET
(AS REQUIRED BY RULE 481(A))
(All other SAIs)
PART B
Not Applicable to this Filing
<PAGE>
PROSPECTUS
OCTOBER 1, 1998
THE PERFORMA FUNDS
PERFORMA STRATEGIC VALUE BOND FUND
PERFORMA DISCIPLINED GROWTH FUND
PERFORMA SMALL CAP VALUE FUND
PERFORMA GLOBAL GROWTH FUND
AN INVESTMENT IN A FUND IS NOT A DEPOSIT OF NORWEST BANK MINNESOTA, N.A. OR ANY
OTHER BANK AND IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT, THE FEDERAL
DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY.
INVESTING IN ANY MUTUAL FUND HAS RISK. IT IS POSSIBLE TO LOSE MONEY BY INVESTING
IN ANY OF THE FUNDS.
NO GOVERNMENTAL AGENCY, INCLUDING THE SECURITIES AND EXCHANGE COMMISSION, HAS
APPROVED OR DISAPPROVED THESE SECURITIES OR DETERMINED WHETHER OR NOT THIS
PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
<PAGE>
TABLE OF CONTENTS
PAGE
1. OVERVIEW.................................................................
2. FINANCIAL HIGHLIGHTS.....................................................
3. GLOSSARY.................................................................
4. INVESTMENT OBJECTIVES AND POLICIES.......................................
5. RISK CONSIDERATIONS......................................................
6. COMMON POLICIES..........................................................
7. MANAGEMENT OF THE FUNDS..................................................
8. PURCHASES AND REDEMPTIONS OF SHARES......................................
9. DISTRIBUTIONS AND TAX MATTERS............................................
10. OTHER INFORMATION
.........................................................................
<PAGE>
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1. OVERVIEW
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The following is a summary of information about the Funds. Before
investing, you should read the prospectus and consider the discussions
under INVESTMENT OBJECTIVES AND POLICIES and RISK CONSIDERATIONS.
No single Fund is a complete or balanced investment program, but each
can serve as a part of your overall investment program.
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THE FUNDS
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FUND OBJECTIVE PRIMARY INVESTMENTS
PERFORMA STRATEGIC VALUE Total return by investing primarily Broad spectrum of
BOND FUND income producing securities. investment grade securities.
securities.
PERFORMA DISCIPLINED GROWTH FUND Capital appreciation by investing Stock of companies that appear to
primarily in common stock of larger possess above average potential
companies. for growth.
PERFORMA SMALL CAP VALUE FUND Capital appreciation by investing Stock of smaller companies
primarily in common stocks of smaller that appear undervalued.
companies.
PERFORMA GLOBAL GROWTH FUND Long-term capital appreciation by Stocks of established
investing primarily in common companies located in the
stocks of established companies developed, newly
throughout the world, including the industrialized and emerging
United States. markets.
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</TABLE>
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FUND STRUCTURES
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Instead of investing directly in a portfolio of securities, each Fund
invests in another fund identified in this prospectus as a Portfolio.
Except when necessary to describe a Fund's investment in a Portfolio,
this prospectus discusses a Fund's investments in a Portfolio as if the
investments were made directly in portfolio securities.
<PAGE>
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MANAGEMENT OF THE FUNDS
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NORWEST INVESTMENT MANAGEMENT, INC. or NORWEST is the investment
adviser for all of the Funds and Portfolios except Schroder Global
Growth Portfolio. Norwest, a subsidiary of Norwest Bank Minnesota, N.A.
or Norwest Bank, provides investment advice to institutions, pension
plans and other accounts and currently manages more than $___ billion
in assets.
SCHRODER CAPITAL MANAGEMENT INC. or SCHRODER is the investment adviser
for Schroder Global Growth Portfolio. Schroder specializes in
providing international investment advice. INVESTMENT SUBADVISERS make
investment decisions for the other Portfolios under Norwest's general
supervision. This prospectus generally refers to Norwest or a
subadviser as an Adviser.
The FORUM FINANCIAL GROUP of companies provide management,
administrative and underwriting services to the Funds.
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PURCHASE AND REDEMPTION OF SHARES
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You may purchase or redeem shares without sales or other charges. The
Funds require a minimum initial investment of $1,000 and minimum
subsequent investments of $100.
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DISTRIBUTIONS
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Each Fund distributes to shareholders its net capital gain, if any, at
least annually. The DISTRIBUTIONS AND TAX MATTERS section discusses how
often the Funds distribute net investment income.
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RISK FACTORS
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All investments in a Fund are subject to risk and may decline in value.
The amount and types of risk vary from Fund to Fund depending on the
Fund's investment objective, the Adviser's strategy, the markets in
which the Fund invests, the investments that the Fund makes and
prevailing economic conditions over the period of your investment.
Every Fund also has the risk that its Adviser may not be successful in
carrying out its investment strategy, that a portfolio manager may
prove difficult to replace if he or she becomes unavailable to manage
the Fund and that the Fund's particular investment strategy may result
in performance that is worse or better than the performance of the
market as a whole. Your investment in a Fund also will have risk if you
do not plan to invest for a period that is long enough to permit the
investment to recover from an adverse market movement.
<PAGE>
If you invest in Performa Strategic Value Bond Fund, the investment
income you receive from the Fund will vary with changes in interest
rates. In addition, the value of the Fund's investments generally will
fall when interest rates rise and rise when interest rates fall. When
interest rates fall, there is a risk that issuers will prepay fixed
rate securities, forcing the Fund to invest in securities with lower
interest rates than the prepaid securities.
A decline in interest rates also may result in losses in the Fund's
mortgage- and other asset-backed securities' values and a reduction in
their yields as the holders of the assets backing the securities prepay
their debts. Rising interest rates may cause the average maturity of
the Fund to rise due to a drop in prepayments. A rise in average
maturity increases the Fund's sensitivity to rising interest rates and
potential for losses in value.
The Fund also is subject to "credit risk," which is the risk that an
issuer will be unable, or will be perceived to be unable, to pay the
interest or principal on its obligations when due. The Fund seeks to
limit its credit risk by investing primarily in debt securities that
are highly rated by a nationally recognized statistical rating
organization. The Fund's investments in securities that are not highly
rated are subject to more credit risk.
Performa Disciplined Growth Fund, Performa Small Cap Value Fund and
Performa Global Growth Fund are subject to "market risk," which is the
general risk that the value of a Fund's investments may decline if the
stock markets perform poorly. There also is a risk that a Fund's
investments will underperform either the securities markets generally
or particular segments of the securities markets.
Performa Small Cap Value Fund and Performa Global Growth Fund have
additional risks because they invest in smaller and foreign issuers,
respectively. Investments in smaller issuers are subject to greater
changes in value because securities of smaller issuers may not trade as
often or be as widely owned as the securities of larger issuers.
Investments in foreign issuers are subject to the risks of foreign
political and economic instability and changes in foreign currency
exchange rates. Foreign investments also are subject to government
actions, including exchange controls and limits on repayments of
foreign investments. Foreign governments may nationalize, tax or
confiscate investors' assets.
<PAGE>
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EXPENSES OF INVESTING IN THE FUNDS
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The following table will assist you in understanding the expenses that
you will bear directly or indirectly when you invest in a Fund. The
Funds do not impose transaction charges for purchasing, redeeming or
exchanging shares. The Funds do not have distribution expenses.
ANNUAL FUND OPERATING EXPENSES
(As a percentage of average net assets after applicable expense reimbursements)
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INVESTMENT OTHER TOTAL FUND
ADVISORY EXPENSES OPERATING
FEES (AFTER REIMBURSEMENTS) EXPENSES
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Performa Strategic Value Bond Fund 0.50% 0.35% 0.85%
Performa Disciplined Growth Fund 0.90% 0.35% 1.25%
Performa Small Cap Value Fund 0.95% 0.35% 1.30%
Performa Global Growth Fund 0.90% 0.55% 1.45%
</TABLE>
Each Fund bears its pro rata portion of the expenses of the Portfolio in which
it invests. Investment Advisory Fees are those incurred by the Portfolios. Other
Expenses reflect expense reimbursements. Absent expense reimbursements, Other
Expenses and Total Operating Expenses for the Funds would be: Performa Strategic
Value Bond Fund [____%] and [____%], Performa Disciplined Growth Fund [____%]
and [____%], Performa Small Cap Value Fund [____%] and [____%] and Performa
Global Growth Fund [____%] and [____%]. Expense reimbursements are voluntary and
may be reduced or eliminated at any time.
EXAMPLES
The following hypothetical example indicates the dollar amount of expenses you
would pay, assuming a $1,000 investment in a Fund's shares, the expenses listed
in Annual Fund Operating Expenses table, a 5% annual return and reinvestment of
all distributions. THE EXAMPLE DOES NOT REPRESENT PAST OR FUTURE EXPENSES OR
RETURN. ACTUAL EXPENSES AND RETURN MAY BE GREATER OR LESS THAN THOSE SHOWN IN
THE EXAMPLE.
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1 YEAR 3 YEARS 5 YEARS 10 YEARS
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</TABLE>
Performa Strategic Value Bond Fund
Performa Disciplined Growth Fund
Performa Small Cap Value Fund
Performa Global Growth Fund
<PAGE>
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2. FINANCIAL HIGHLIGHTS
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The financial highlights table is intended to help you understand each Fund's
financial performance for the Fund's operating history. Certain information
reflects financial results for a single Fund share. The total returns in the
table represent the rate that an investor would have earned on an investment in
a Fund, assuming reinvestment of all distributions. The information has been
audited by _____________________, independent auditors, whose reports about a
Fund, along with the Fund's financial statements, are included in the Fund's
Annual Report, which is available at no charge upon request.
<PAGE>
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3. GLOSSARY
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This Glossary of frequently used terms will help you understand the
discussion of the Funds' objectives, policies and risks. Defined terms are
capitalized when used in this prospectus.
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Term Definition
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Board The Board of Trustees of the Funds.
Duration A measure of a debt security's average life
that reflects the present value of the
security's cash flow.
Fundamental Requiring shareholder approval to change.
Market Capitalization The total market value of a company's outstanding common stock.
NRSRO A nationally recognized statistical rating organization, such as S&P, that rates
fixed-income securities and preferred stock by relative credit risk.
Non-Investment Grade Neither rated at the time of purchase in 1 of the 4 highest long-term
or 2 highest short-term ratings categories by an NRSRO nor unrated
and determined by the Adviser to be comparable quality.
Russell 2000(R)Index A broad-based index of smaller capitalization companies.
S&P Standard & Poor's Corporation.
S&P 500 Index Standard & Poor's 500 Composite Stock Price Index, an index of large
capitalization companies.
SEC The U.S. Securities and Exchange Commission.
U.S. Government Security A security issued or guaranteed as to principal and interest by the U.S.
Government, its agencies or its instrumentalities.
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</TABLE>
<PAGE>
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4. INVESTMENT OBJECTIVES AND POLICIES
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This section discusses the investment objectives and policies of the
Funds. After each Fund's description, there is a short, alphabetical
listing of the Fund's primary risks. The RISK CONSIDERATIONS section
below discusses these risks.
PERFORMA STRATEGIC VALUE BOND FUND
INVESTMENT OBJECTIVE. The Fund's investment objective is to seek total
return by investing primarily in income producing securities.
INVESTMENT POLICIES. The Fund invests in a broad range of fixed-income
instruments in order to create a strategically diversified portfolio of
fixed-income investments. These investments include corporate bonds,
mortgage- and other asset-backed securities, U.S. Government
Securities, preferred stock, convertible bonds and foreign bonds.
The Adviser focuses on relative value as opposed to predicting the
direction of interest rates. In general, the Fund seeks higher current
income instruments such as corporate bonds and mortgage-and other
asset-backed securities in order to enhance returns. The Adviser
believes that this exposure enhances performance in varying economic
and interest rate cycles and avoids excessive risk concentrations. The
Adviser's investment process involves rigorous evaluation of each
security, including identifying and valuing cash flows, embedded
options, credit quality, structure, liquidity, marketability, current
versus historical trading relationships, supply and demand for the
instrument and expected returns in varying economic/interest rate
environments. The Adviser uses this process to seek to identify
securities which represent the best relative economic value. The
Adviser then evaluates the results of the investment process against
the Fund's objective and purchases those securities that are consistent
with the Fund's investment objective.
The Fund particularly seeks strategic diversification. The Fund will
not invest more than:
* 75% of its total assets in corporate bonds;
* 60% of its total assets in mortgage-backed securities;
* 50% of its total assets in asset-backed securities; or
* 25% of its total assets in a single industry of the corporate
market.
The Fund may invest in U.S. Government Securities without restriction.
The Fund generally will not invest more than 5% of its total assets in
the corporate bonds of any single issuer.
<PAGE>
The Fund will invest 65% of its total assets in securities rated, at
the time of purchase, within the 3 highest rating categories assigned
by at least 1 NRSRO, or which are unrated and determined by the Adviser
to be of comparable quality. The Fund may invest up to 20% of its total
assets in Non-Investment Grade securities rated at the time of purchase
in the fifth highest long-term rating category assigned by an NRSRO or
unrated and determined by the Adviser to be of comparable quality.
The average maturity of the Fund will vary between 5 and 15 years. In
the case of mortgage-backed and similar securities, the Fund uses the
security's average life in calculating the Fund's average maturity. The
Fund's Duration normally will vary between 3 and 8 years.
The Fund may use options, swap agreements, interest rate caps, floors
and collars and futures contracts to manage risk. The Fund also may use
options to enhance return.
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RISKS:
credit risk interest rate risk leverage risk
market risk prepayment risk
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PERFORMA DISCIPLINED GROWTH FUND
INVESTMENT OBJECTIVE. The Fund's investment objective is to seek
capital appreciation by investing primarily in common stocks of larger
companies.
INVESTMENT POLICIES. The Fund seeks higher long-term returns by
investing primarily in the common stock of companies that, in the view
of the Adviser, possess above average potential for growth. The Fund
invests in companies with average Market Capitalizations greater than
$5 billion.
The Fund seeks to identify growth companies that will report a level of
corporate earnings that exceed the level expected by investors. In
seeking these companies, the Adviser uses both quantitative and
fundamental analysis. The Adviser may consider, among other factors,
changes of earnings estimates by investment analysts, the recent trend
of company earnings reports and an analysis of the fundamental business
outlook for the company. The Adviser uses a variety of valuation
measures to determine whether or not the share price already reflects
any positive fundamentals identified by the Adviser. In addition to
approximately equal weighting of portfolio securities, the Adviser
attempts to constrain the variability of the investment returns by
employing risk control screens for price volatility, financial quality
and valuation.
<PAGE>
The Fund may use options, swap agreements, interest rate caps, floors
and collars and futures contracts to manage risk or enhance return.
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RISKS:
leverage risk market risk
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PERFORMA SMALL CAP VALUE FUND
INVESTMENT OBJECTIVE. The Fund's investment objective is to seek
capital appreciation by investing primarily in common stocks of
smaller companies.
INVESTMENT POLICIES. The Fund seeks capital appreciation by investing
in common stocks of smaller companies. The Fund will normally invest
substantially all of its assets in securities of companies with Market
Capitalizations that reflect the Market Capitalization of companies
included in the Russell 2000 Index, which range from approximately $__
billion to approximately $__ billion.
The Fund seeks higher growth rates and greater long-term returns by
investing primarily in the common stock of smaller companies that the
Adviser believes to be undervalued and likely to report a level of
corporate earnings exceeding the level expected by investors. The
Adviser values companies based upon both the price-to-earnings ratio of
the company and a comparison of the public market value of the company
to a proprietary model that values the company in the private market.
In seeking companies that will report a level of earnings exceeding
that expected by investors, the Adviser uses both quantitative and
fundamental analysis. Among other factors, the Adviser considers
changes of earnings estimates by investment analysts, the recent trend
of company earnings reports and the fundamental business outlook for
the company.
The Fund may use options, swap agreements, interest rate caps, floors
and collars and futures contracts to manage risk or enhance return.
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RISKS:
Leverage risk market risk small company risk
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PERFORMA GLOBAL GROWTH FUND
INVESTMENT OBJECTIVE. The Fund's investment objective is to seek
long-term growth of capital by investing primarily in common stocks of
established companies throughout the world, including the United
States.
<PAGE>
INVESTMENT POLICIES. The Fund invests in common stocks of established
companies located in the developed, newly industrialized and emerging
markets. The Fund normally invests at least 65% of its total assets in
companies located in the United States and at least four other
countries. The Fund may invest in companies of any size, but generally
invests in companies that are large and, to a lesser extent,
medium-sized for the particular market.
The Adviser's investment process emphasizes stock selection and a
fundamental company analysis. The Adviser seeks companies that it
believes have a sustainable competitive advantage and a potential for
growth that is generally undervalued by other investors. The Adviser
considers historical growth rates and future growth prospects,
management capability and competitive position in both domestic and
export markets.
The Adviser allocates the Fund's investments geographically. The
Adviser selects countries it believes have a favorable long-term
business environment and are not subject to adverse macroeconomic or
political conditions that could impede corporate growth. The Fund may
invest more than 25% of its total assets in issuers located in a single
country.
The Fund may seek capital appreciation by investing in convertible or
non-convertible debt securities. The Fund may invest in debt securities
issued by corporations or financial institutions. The Fund also may
invest in debt securities issued or guaranteed by foreign governments
(including provinces and municipalities), their agencies and their
instrumentalities and international organizations that promote economic
reconstruction or development.
When selecting debt securities, the Adviser considers favorable changes
in relative foreign exchange rates, relative interest rate levels or
the creditworthiness of issuers. The Adviser seeks income only
incidentally to seeking capital appreciation. The Fund may invest in
debt securities in order to participate in debt-to-equity conversion
programs that are part of corporate reorganizations.
The Fund may enter into foreign currency forward contracts to purchase
or sell foreign currencies in anticipation of its currency requirements
and to protect against possible adverse movements in foreign exchange
rates.
The Fund may use options, swap agreements, interest rate caps, floors
and collars and futures contracts to manage risk or enhance return.
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RISKS:
credit risk currency rate risk foreign risk
geographic concentration risk interest rate risk leverage risk
market risk prepayment risk
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<PAGE>
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5. RISK CONSIDERATIONS
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This section describes the principal risks that may apply to the Funds.
Each Fund's exposure to these risks depends upon its specific
investment profile. The Fund's description in Investment Objectives and
Policies lists the Fund's principal risks.
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CREDIT RISK
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The risk that the issuer of a security, or the counterparty to a
contract, will default or otherwise be unable to honor a financial
obligation. This risk is greater for Non-Investment Grade securities.
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CURRENCY RATE RISK
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The risk that fluctuations in the exchange rates between the U.S.
dollar and foreign currencies may negatively affect a Fund's
investments. This risk may be greater for investments in emerging or
developing markets.
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FOREIGN RISK
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The risk that foreign investments may be subject to political and
economic instability, the imposition or tightening of exchange controls
or other limitations on repatriation of foreign capital, or
nationalization, increased taxation or confiscation of investors'
assets. This risk may be greater for investments in issuers in emerging
or developing markets.
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GEOGRAPHIC CONCENTRATION RISK
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The risk that factors adversely affecting a Fund's investments in
issuers located in a state, country or region will affect the Fund's
net asset value more than would be the case if the Fund had made more
geographically diverse investments.
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INTEREST RATE RISK
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The risk that changes in interest rates may affect the value of your
investment. With fixed-rate securities, including U.S. Government
Securities, an increase in interest rates typically causes the value of
a Fund's fixed-rate securities to fall, while a decline in interest
rates may produce an increase in the market value of the securities.
Because of this risk, an investment in a Fund that invests in
fixed-income securities is subject to risk even if all the fixed-income
securities in the Fund's portfolio are paid in full at maturity.
Changes in interest rates will affect the value of longer-term
fixed-income securities more than shorter-term securities.
<PAGE>
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LEVERAGE RISK
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The risk that some transactions may multiply smaller market movements
into large changes in a Fund's net asset value. This risk may occur
when a Fund borrows money or enters into transactions that have a
similar economic effect, such as short sales or forward commitment
transactions. This risk also may occur when a Fund makes investments in
derivatives, such as options or futures contracts.
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MARKET RISK
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The risk that the market value of a Fund's investments will fluctuate
as the stock and bond markets fluctuate generally. Market risk may
affect a single issuer, industry or section of the economy or may
affect the market as a whole.
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PREPAYMENT RISK
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The risk that issuers will prepay fixed rate securities when interest
rates fall, forcing the Fund to invest in securities with lower
interest rates than the prepaid securities. For a Fund investing in
mortgage- and other asset-backed securities, this is also the risk that
a decline in interest rates may result in holders of the assets backing
the securities to prepay their debts, resulting in potential losses in
these securities' values and yield. Alternatively, rising interest
rates may reduce the amount of prepayments on the assets backing these
securities, causing the Fund's average maturity to rise and increasing
the Fund's sensitivity to rising interest rates and potential for
losses in value.
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SMALL COMPANY RISK
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The risk that investments in smaller companies may be more volatile
than investments in larger companies. Smaller companies may have higher
failure rates than larger companies. A small company's securities may
be hard to sell because the trading volume of the securities of smaller
companies is normally lower than that of larger companies. Short term
changes in the demand for the securities of smaller companies may have
a disproportionate effect on their market price, tending to make prices
of these securities fall more in response to selling pressure.
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6. COMMON POLICIES
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Except as otherwise indicated, the Board may change the Funds'
investment policies without shareholder approval. The Funds' investment
objectives are Fundamental.
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VOTING ISSUES
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<PAGE>
In determining the outcome of shareholder votes, the Performa Funds and
the funds in the Performa Funds' fund complex normally count votes on a
share-by-share basis. This means that shareholders of funds in the fund
complex with comparatively high net asset values will have a
comparatively smaller impact on the outcome of votes by all of the
funds in the fund complex than do shareholders of funds with
comparatively low net asset values.
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UNRATED SECURITIES
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Each Fund may retain a security whose rating has been lowered (or a
security of comparable quality to a security whose rating has been
lowered) below the Fund's lowest permissible rating category if the
Fund's Adviser determines that retaining the security is in the best
interests of the Fund. Because a downgrade often results in a reduction
in the market price of the security, sale of a downgraded security may
result in a loss.
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TEMPORARY DEFENSIVE POSITION
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To respond to adverse market, economic, political, or other conditions,
each Fund may assume a temporary defensive position and invest without
limit in cash and cash equivalents. When a Fund makes temporary
defensive investments, it may not pursue its investment objective.
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PORTFOLIO TRANSACTIONS
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From time to time, a Fund may engage in active short-term trading to
take advantage of price movements affecting individual issues, groups
of issues or markets. Higher portfolio turnover rates may result in
increased brokerage costs and a possible increase in short-term capital
gains or losses. The FINANCIAL HIGHLIGHTS table lists the Funds'
portfolio turnover.
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YEAR 2000
- --------------------------------------------------------------------------------
The Funds could be adversely affected if the computer systems used by
the Advisers and other service providers to the Funds do not properly
process and calculate date-related information and data from and after
January 1, 2000. The Year 2000 issue also may adversely affect the
Funds' investments.
Norwest and Forum Financial Group are taking steps to address the Year
2000 issue for their computer systems and to obtain reasonable
assurances that comparable steps are being taken by the Funds' other
major service providers. While the Funds do not anticipate any adverse
effect on their computer systems from the Year 2000 issue, there can be
no assurance that these steps will be sufficient to avoid any adverse
impact on the Funds.
<PAGE>
- --------------------------------------------------------------------------------
MANAGEMENT OF THE FUNDS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INVESTMENT ADVISORY SERVICES
- --------------------------------------------------------------------------------
NORWEST INVESTMENT MANAGEMENT, INC. is the investment adviser for each
Fund and each Portfolio except the Schroder Global Growth Portfolio.
In this capacity, Norwest makes investment decisions for and
administers the Funds' and Portfolios' investment programs. NORWEST
INVESTMENT MANAGEMENT, INC., NORWEST CENTER, SIXTH STREET AND
MARQUETTE, MINNEAPOLIS, MN 55479.
SCHRODER CAPITAL MANAGEMENT INTERNATIONAL INC. is the investment
adviser for Schroder Global Growth Portfolio. In this capacity,
Schroder makes investment decisions for and administers that
Portfolio's investment program. SCHRODER CAPITAL MANAGEMENT
INTERNATIONAL INC., 787 SEVENTH AVENUE, 34TH FLOOR, NEW YORK, NY
10019.
Norwest and certain of the Portfolios have retained INVESTMENT
SUBADVISERS to make investment decisions for and administer the
investment programs of those Funds and Portfolios. Norwest decides
which portion of the assets of a Portfolio the subadviser should
manage and supervises the subadvisers' performance of their duties.
The subadvisers are:
GALLIARD CAPITAL MANAGEMENT, INC. OR GALLIARD, AN INVESTMENT ADVISORY
SUBSIDIARY OF NORWEST BANK, PROVIDES INVESTMENT ADVISORY SERVICES TO
BANK AND THRIFT INSTITUTIONS, PENSION AND PROFIT SHARING PLANS, TRUSTS
AND CHARITABLE ORGANIZATIONS AND CORPORATE AND OTHER BUSINESS
ENTITIES. GALLIARD CAPITAL MANAGEMENT, INC., 800 LASALLE AVE. SUITE
2060, MINNEAPOLIS, MN 55479.
SMITH ASSET MANAGEMENT GROUP, L.P. OR SMITH, AN INVESTMENT ADVISORY
AFFILIATE OF NORWEST BANK, PROVIDES INVESTMENT MANAGEMENT SERVICES TO
COMPANY RETIREMENT PLANS, FOUNDATIONS, ENDOWMENTS, TRUST COMPANIES AND
HIGH NET WORTH INDIVIDUALS USING A DISCIPLINED EQUITY STYLE. SMITH
ASSET MANAGEMENT GROUP, L.P., 300 CRESCENT COURT, SUITE 750, DALLAS,
TX 75201
Listed below, for each Fund, are the portfolio managers primarily
responsible for the day-to-day management of the Funds' investments.
The year a portfolio manager began managing the Portfolio follows the
manager's name in parenthesis. The list includes the investment
advisory fees payable to Norwest or Schroder by the Portfolios. The
list states the investment advisory fees on an annualized basis as a
percentage of a Portfolio's
<PAGE>
average daily net assets. Descriptions of the portfolio managers'
recent experience follow the list of portfolio managers and advisory
fees.
Norwest (and not the Funds or Portfolios) pays the subadvisers'
investment subadvisory fees. The investment subadvisory fees do not
increase the amount of the investment advisory fees paid to Norwest by
the Portfolios.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PERFORMA STRATEGIC VALUE BOND FUND
PORTFOLIO: STRATEGIC VALUE BOND PORTFOLIO
ADVISER: NORWEST
SUBADVISER: GALLIARD
PORTFOLIO MANAGERS: Richard Merriam, CFA (19__), John
Huber (19__) and David Yim (19__).
ADVISORY FEE: 0.50%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PERFORMA DISCIPLINED GROWTH PORTFOLIO
PORTFOLIOS: DISCIPLINED GROWTH PORTFOLIO
ADVISER: NORWEST
SUBADVISER: SMITH
PORTFOLIO MANAGER: Stephen S. Smith, CFA (199_).
ADVISORY FEE: 0.90%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND
PORTFOLIO: SMALL CAP VALUE PORTFOLIO
ADVISER: NORWEST
SUBADVISER: SMITH
PORTFOLIO MANAGER: Stephen S. Smith (199_)
ADVISORY FEE: 0.95%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SCHRODER GLOBAL GROWTH FUND
PORTFOLIO: INTERNATIONAL PORTFOLIO
ADVISER: SCHRODER
PORTFOLIO MANAGER: Michael Perelstein (____) and Paul
Morris (____).
ADVISORY FEE: 0.50%
PORTFOLIO MANAGERS
JOHN HUBER has been a Portfolio Manager and Director of Trading at
Galliard since 1995. Mr. Huber has been in investment management since
1991.
<PAGE>
RICHARD MERRIAM, a managing partner of Galliard since 1995, is
responsible for investment process and strategy. He was previously
Chief Investment Officer of Insight Investment Management.
PAUL MORRIS has been a Senior Vice President of Schroder Capital
Management International and a Director of Schroder since 1997. Prior
to joining Schroder, Mr. Morris was Principal and Senior Portfolio
Manager at Weiss Peck & Greer, L.L.C., Managing Director (Equity
Division) of UBS Asset Management and an Equity Portfolio Manager at
Chase Investors Management Group.
MICHAEL PERELSTEIN has been a Senior Vice President of Schroder since
January 1997. Previously Mr. Perelstein was a Managing Director at
MacKay Shields.
STEPHEN S. SMITH has been a Chief Investment Officer and principal of
the Smith Group since 1995. Mr. Smith previously served as senior
portfolio manager with NationsBank and in several capacities with AIM
Management Company's Summit Fund.
DAVID YIM, a Portfolio Manager and Director of Investment Research of
Galliard since 1995, previously worked for American Express Financial
Advisors as a Research Analyst.
DORMANT INVESTMENT ADVISORY ARRANGEMENTS
Norwest has been retained as a "dormant" or "back-up" investment
adviser to manage any assets redeemed and invested directly by a Fund.
Norwest does not receive any compensation under this arrangement as
long as a Fund invests entirely in a Portfolio. If a Fund redeems
assets from a Portfolio and invests them directly, Norwest receives an
investment advisory fee from the Fund for the management of those
assets.
OTHER FUND SERVICES
The FORUM FINANCIAL GROUP of companies provide managerial,
administrative and underwriting services to the Funds. NORWEST BANK
acts as the Funds' transfer agent, dividend disbursing agent and
custodian.
BACKGROUND OF SMITH GROUP PERFORMANCE
The table below sets forth composite performance data for the dates
indicated relating to the historical performance of certain separate
accounts and mutual fund portfolios primarily managed by Stephen
Smith, the portfolio manager of Disciplined Growth Portfolio and Small
Cap Value Portfolio. The data illustrate the past performance of Mr.
Smith in managing substantially similar accounts as measured against
specified market indices. It does not represent the performance of the
Portfolios. This performance data is not an indication of future
performance of the Portfolios, the Smith Group or Mr. Smith.
<PAGE>
Mr. Smith's composites include all actual, fee-paying, discretionary
institutional private accounts and mutual fund portfolios managed by
Mr. Smith that have substantially the same investment objectives and
policies. Mr. Smith's composite performance was calculated on a total
return basis and includes all dividends and interest, accrued income
and realized and unrealized gain and loss. The data accounts for
securities transactions on the trade date and uses accrual accounting.
All returns reflect the deduction of the highest effective investment
advisory fees, brokerage commissions and execution costs paid by the
Adviser's private accounts, without provision for federal or state
income taxes. Returns include returns from cash and cash equivalents.
Account fees vary depending on, among other things, the applicable fee
schedule, portfolio size and nature of the account. Custodial fees, if
any, were not included in the calculation. A schedule of Mr. Smith's
fees is available on request.
The monthly returns of Mr. Smith's composites combine the individual
accounts' returns (calculated on a time-weighted rate of return) by
asset-weighing each individual account's asset value as of the
beginning of the month. Quarterly and yearly returns are calculated by
geometrically linking the monthly and quarterly returns, respectively.
The institutional private accounts included in Mr. Smith's composites
are not subject to certain investment limitations, diversification
requirements, specific tax restrictions and investment limitations
imposed on the Portfolios by the Investment Company Act of 1940 or the
Internal Revenue Code. The performance results could have been
adversely affected if the institutional private accounts included in
the composite had been regulated as investment companies.
The composites are unaudited and do not represent the past performance
of nor predict the future returns of the Portfolios or an individual
investor investing in Performa Disciplined Growth Fund or Performa
Small Cap Value Fund. The use of a methodology different from that used
to calculate the performance could result in different performance
data.
<TABLE>
<S> <C> <C>
MR. SMITH'S COMPOSITE FOR THE S&P 500 INDEX(3)
DISCIPLINED GROWTH STYLE(2) ----------------
---------------------------
1995 [38.05]% [37.54]%
1996 [31.26]% [22.99]%
1997 [42.94]% [29.58]%
1998 to Date(1)
1 Year(1) [53.62]% [40.43]%
2 Years(1) [37.38]% [29.97]%
Since Inception [41.35]% [33.30]%
1/1/95(1)
MR. SMITH'S COMPOSITE FOR THE RUSSELL 2000(4)
SMALL CAP VALUE STYLE ---------------
---------------------
Since Inception [42.19]% [33.25]%
11/1/96(1)
Year to Date(1) [28.78]% [26.04]%
</TABLE>
<PAGE>
(1) Average annual return through [December 31][September 30], 1997.
Return for less than one year is not annualized.
(2) The composite returns consist of the total returns for the period
January 1995 through [December][September] 1997 of accounts for which
Stephen S. Smith, now Chief Investment Officer of the Smith Group,
served as the primary manager as described above, including the period
January 1, 1995 -October 31, 1995, during which Mr. Smith was senior
portfolio manager for another firm. The composite does not include the
performance of other accounts not managed similarly to the Portfolio.
Since November 1, 1995, when the Smith Group commenced operations, Mr.
Smith has employed the same investment style in discretionary private
accounts as he employed in the accounts described above. No other
person played a significant part in achieving the prior performance of
these accounts during Mr. Smith's tenure. The data for January 1, 1995
- October 31, 1995 are not, and should not be, construed as the
performance data of Smith Group.
(3) The S&P 500 Index is an unmanaged index containing common stocks of 500
industrial, transportation, utility and financial companies, regarded
as generally representative of the U.S. stock market. The Index
reflects the reinvestment of income dividends and capital gain
distributions, if any, but does not reflect fees, brokerage
commissions, or other expenses of investing.
(4) The Russell 2000 Index is an unmanaged index consisting of the
securities of the 2,000 issuers having the smallest capitalization in
the Russell 3000 Index, representing approximately 10% of the Russell
3000 total market capitalization. The average market capitalization of
companies included in the Index is approximately $500 million. The
Index reflects the reinvestment of income dividends and capital gain
distributions, if any, but does not reflect fees, brokerage
commissions, or other expenses of investing.
- --------------------------------------------------------------------------------
8. PURCHASES AND REDEMPTIONS OF SHARES
- --------------------------------------------------------------------------------
You may purchase or redeem shares at a price equal to their net asset
value next determined after acceptance of a purchase order, or receipt
of a redemption request, on "Fund Business Days." Fund Business Days
are all weekdays except generally observed national holidays (New
Year's Day, Martin Luther King, Jr. Day, Presidents' Day, Memorial Day,
Independence Day, Labor Day, Thanksgiving and Christmas) and Good
Friday.
- --------------------------------------------------------------------------------
GENERAL PURCHASE INFORMATION
- --------------------------------------------------------------------------------
You may purchase shares only through certain financial institutions.
The Funds' transfer agent processes all transactions in Fund shares.
Please call 888-800-6748 for information about opening an account to
purchase Fund shares.
You may purchase and redeem Fund shares without a sales or redemption
charge. Purchases of Fund shares require a minimum initial investment
of $1,000 and minimum subsequent investments of $100. The Funds reserve
the right to reject any subscription for the purchase of shares.
<PAGE>
Your shares may be held in your name or in the name of your financial
institution. Subject to your institution's procedures, you may have
Fund shares held in the name of your financial institution transferred
into your name. If your shares are held in the name of your financial
institution, you must contact the financial institution on matters
involving your shares. Your financial institution may charge you for
purchasing, redeeming or exchanging shares. The Funds are not
responsible if your financial institution fails to carry out its
obligations to you. There is normally a three-day settlement period for
purchases and redemptions through broker-dealers.
When you sign an application for a new Fund account, you are certifying
that your Social Security number or other taxpayer identification
number is correct and that you are not subject to backup withholding.
If you violate certain federal income tax provisions, the Internal
Revenue Service can require the Funds to withhold 31% of your
distributions and redemptions.
- --------------------------------------------------------------------------------
GENERAL REDEMPTION INFORMATION
- --------------------------------------------------------------------------------
You may redeem Fund shares at their net asset value on any Fund
Business Day. There is no minimum period of investment and no
restriction on the frequency of redemptions. Please call 888-800-6748
for information about opening an account to purchase Fund shares.
Fund shares are redeemed as of the next determination of the Fund's net
asset value following receipt by the transfer agent of the redemption
order in proper form (and any supporting documentation that the
transfer agent may require). Redeemed shares are not entitled to
receive distributions after the day on which the redemption is
effective.
Normally, redemption proceeds are paid immediately following receipt of
a redemption order in proper form. In any event, you will be paid
within 7 days, unless (1) your bank has not cleared the check to
purchase the shares (which may take up to 15 days), (2) the New York
Stock Exchange is closed (or trading is restricted) for any reason
other than normal weekend or holiday closings, (3) there is an
emergency in which it is not practical for the Fund to sell its
portfolio securities or for the Fund to determine its net asset value
or (4) the SEC deems it inappropriate for redemption proceeds to be
paid. You can avoid the delay of waiting for your bank to clear your
check by paying for shares with wire transfers.
Because of the cost of maintaining smaller accounts, the Performa Funds
may redeem, upon not less than 60 days' written notice, any account
with a net asset value of less than $1,000.
- --------------------------------------------------------------------------------
9. DISTRIBUTIONS AND TAX MATTERS
- --------------------------------------------------------------------------------
<PAGE>
Distributions of net investment income are declared and paid monthly
for Performa Strategic Value Bond Fund and annually for the other
Funds. Each Fund distributes net capital gain, if any, at least
annually.
You have 3 choices for receiving distributions: the Reinvestment
Option, the Cash Option and the Directed Dividend Option.
* Under the Reinvestment Option, all distributions of a Fund
are automatically invested in additional shares of that Fund.
You are automatically assigned this option unless you select
another option.
* Under the Cash Option, you are paid all distributions in
cash.
* Under the Directed Dividend Option, if you own $10,000 or
more of a Fund's shares in a single account, you can have that
Fund's distributions reinvested in shares of another Fund.
[Call or write the transfer agent] for more information about
the Directed Dividend Option.
All distributions are treated in the same manner for federal income
tax purposes whether received in cash or reinvested in shares of a
Fund. All distributions reinvested in a Fund are reinvested at the
Fund's net asset value as of the payment date of the distribution
- --------------------------------------------------------------------------------
TAX MATTERS
- --------------------------------------------------------------------------------
The Funds are managed so that they do not owe Federal income or excise
taxes. Distributions paid by a Fund out of its net investment income
(including net short-term capital gain) are taxable to shareholders as
ordinary income. Net capital gain distributed by the Fund may be
taxable at different rates depending on the length of time the Fund
holds its assets. Distributions reduce the net asset value of the Fund
paying the distribution by the amount of the distribution.
Furthermore, a distribution made shortly after you purchase shares,
although in effect a return of capital to you, is taxable.
If a Fund receives investment income from sources within foreign
countries, that income may be subject to foreign income or other
taxes. Performa Global Growth Fund intends, if eligible to do so, to
permit its shareholders to take a credit (or a deduction) for foreign
income and other taxes paid by Schroder Global Growth Portfolio. If
you own shares of Performa Global Growth Fund, you will be notified of
your share of those foreign taxes and will be required to treat the
amount of the foreign taxes as additional income. In that event, you
may be entitled to claim a credit or deduction for those taxes.
<PAGE>
- --------------------------------------------------------------------------------
10. OTHER INFORMATION
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
DETERMINATION OF NET ASSET VALUE
- --------------------------------------------------------------------------------
Each Fund determines its net asset value at 4:00 p.m., Eastern Time on
each Fund Business Day by dividing the value of its net assets (i.e,.
the value of its securities and other assets less its liabilities) by
the number of shares outstanding at the time the determination is made.
The Funds value portfolio securities at current market value if market
quotations are readily available. If market quotations are not readily
available, the Funds value those securities at fair value as determined
by or pursuant to procedures adopted by the Board.
European, Far Eastern and other international securities exchanges and
over-the-counter markets normally complete trading well before the
close of business on each Fund Business Day. Trading in foreign
securities, however, may not take place on all Fund Business Days or
may take place on days that are not Fund Business Days. The
determination of the prices of foreign securities may be based on the
latest market quotations for the securities. If events occur that
affect the securities' value after the close of the markets on which
they trade, the Funds may make an adjustment to the value of the
securities for purposes of determining net asset value.
For purposes of determining net asset value, the Funds convert all
assets and liabilities denominated in foreign currencies into U.S.
dollars at the mean of the bid and asked prices of such currencies
against the U.S. dollar last quoted by a major bank prior to the time
of conversion.
- --------------------------------------------------------------------------------
ADDITIONAL INFORMATION ABOUT THE PORTFOLIOS
- --------------------------------------------------------------------------------
Each Fund bears its pro rata portion of the expenses of the Portfolio
in which it invests. The Board may redeem a Fund's investment in a
Portfolio at any time. The Fund could then invest directly in portfolio
securities or could re-invest in 1 or more different Portfolios that
could have different fees and expenses. A Fund might redeem, for
example, if other investors had sufficient voting power to change the
investment objectives or policies of the Portfolio in a manner
detrimental to the Fund.
NO ONE HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY
REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS, THE STATEMENT OF
ADDITIONAL INFORMATION AND THE FUNDS' OFFICIAL SALES LITERATURE. ANY SUCH
<PAGE>
INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED
BY THE FUNDS. THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFER IN ANY STATE IN
WHICH, OR TO ANY PERSON TO WHOM, SUCH OFFER MAY NOT LAWFULLY BE MADE. If you
would like more information about the Funds and their investments, you may want
to read the following documents:
STATEMENT OF ADDITIONAL INFORMATION. A Fund's statement of additional
information, or "SAI," contains detailed information about the Funds, such as
its investments, management and organization. It is incorporated into this
Prospectus by reference.
ANNUAL AND SEMI-ANNUAL REPORTS. Additional information about each Fund's
investments is available in its annual and semi-annual reports to shareholders.
In the annual report, each Fund's portfolio manager discusses the market
conditions and investment strategies that significantly affected the Fund's
performance during its last fiscal year.
You may obtain free copies of the SAI, annual report and semi-annual report by
contacting your broker or trust officer, by contacting Forum Financial Services,
Inc., at Two Portland Square, Portland, Maine 04101 or by calling 1-800-
XXX-XXXX or 1-207-879-0001.
The Funds' reports and statement of additional information are available from
the Securities and Exchange Commission in Washington, D.C. You may obtain copies
of these documents, upon payment of a duplicating fee, by writing the Public
Reference Section of the SEC, Washington D.C. 20549-6009. Please call
1-800-SEC-0330 for information about the operation of the SEC's public reference
room. The Fund's reports and other information are also available on the SEC's
Web Site at http:// www.sec.gov.
The SEC's Investment Company Act file number for the Funds is 811-4881
47180.160 #25130
<PAGE>
PERFORMA FUNDS
STATEMENT OF ADDITIONAL INFORMATION
OCTOBER 1, 1998
PERFORMA DISCIPLINED GROWTH FUND
PERFORMA SMALL CAP VALUE FUND
PERFORMA STRATEGIC VALUE BOND FUND
PERFORMA GLOBAL GROWTH FUND
<PAGE>
PERFORMA FUNDS
STATEMENT OF ADDITIONAL INFORMATION
OCTOBER 1, 1998
ACCOUNT INFORMATION AND
SHAREHOLDER SERVICING: DISTRIBUTION:
Norwest Bank Minnesota, N.A. Forum Financial Services, Inc.
Transfer Agent Manager and Distributor
733 Marquette Avenue Two Portland Square
Minneapolis, MN 55479-0040 Portland, Maine 04101
612) 667-8833/(800) 338-1348 (207) 879-1900
The Performa Funds are separate series of Norwest Advantage Funds, an open-end,
management investment company registered under the Investment Company Act of
1940, as amended.
This Statement of Additional Information supplements the Prospectus dated
October 1, 1998, as may be amended from time to time, offering shares of
Performa Disciplined Growth Fund, Performa Small Cap Value Fund, Performa
Strategic Value Bond Fund and Performa Global Growth Fund.
THIS STATEMENT OF ADDITIONAL INFORMATION IS NOT A PROSPECTUS AND IS AUTHORIZED
FOR DISTRIBUTION TO PROSPECTIVE INVESTORS ONLY IF PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE PROSPECTUS.
THIS STATEMENT OF ADDITIONAL INFORMATION SHOULD BE READ ONLY IN CONJUNCTION WITH
THE CURRENT PROSPECTUS, COPIES OF WHICH MAY BE OBTAINED BY AN INVESTOR WITHOUT
CHARGE BY CONTACTING THE DISTRIBUTOR AT THE ADDRESS LISTED ABOVE.
<PAGE>
TABLE OF CONTENTS
Page
----
Introduction
1. Investment Policies
Security Ratings Information
Fixed Income Investments
Mortgage-Backed And Asset-Backed Securities Interest Rate
Protection Transactions Hedging And Option Income Strategies
Foreign Currency Transactions Equity Securities and Additional
Information Illiquid Securities and Restricted Securities
Loans of Portfolio Securities Borrowing And Transactions
Involving Leverage Repurchase Agreements Temporary Defensive
Position
2. Investment Limitations
Fundamental Limitations
Non-Fundamental Limitations
3. Performance and Advertising Data
SEC Yield Calculations
Total Return Calculations
Other Advertisement Matters
4. Management
Trustees and Officers
Investment Advisory Services
Management and Administrative Services
Distribution
Transfer Agent
Custodian
Portfolio Accounting
Expenses
5. Portfolio Transactions
6. Additional Purchase and Redemption Information
General
Exchanges
Redemptions
7. Taxation
<PAGE>
TABLE OF CONTENTS
Page
----
8. Additional Information About the Trust and the Shareholders of the
Funds
Counsel and Auditors
General Information
Shareholdings
Financial Statements
Registration Statement
Appendix A - Description of Securities Ratings A-1
<PAGE>
INTRODUCTION
Glossary:
"Adviser" means Norwest, Schroder or a Subadviser.
"Board" means the Board of Trustees of the Trust.
"CFTC" means the U.S. Commodities Futures Trading Commission.
"Code" means the Internal Revenue Code of 1986, as amended.
"Core Trust" means Core Trust (Delaware), an open-end, management
investment company registered under the 1940 Act.
"Core Trust Board" means the Board of Trustees of Core Trust.
"Custodian" means Norwest acting in its capacity as custodian of a
Fund.
"Bond" includes fixed income investments issued with a final maturity
of 3 years or more, or that on their face are described as "bonds."
"FAS" means Forum Administrative Services, Limited Liability Company,
the Trust's administrator.
"Fitch" means Fitch IBCA, Inc.
"Forum" means Forum Financial Services, Inc., a registered
broker-dealer and the distributor of the Trust's shares.
"Forum Accounting" means Forum Accounting Services, Limited Liability
Company, the Trust's fund accountant.
"Fund" means each of the four separate portfolios of the Trust to which
this Statement of Additional Information relates as identified on the
cover page.
"Galliard" means Galliard Capital Management, Inc., the investment
subadviser to Performa Strategic Value Bond Fund and Strategic Value
Bond Portfolio.
"Moody's" means Moody's Investors Service.
"Norwest" means Norwest Investment Management, Inc., a subsidiary of
Norwest Bank Minnesota, N.A.
"Norwest Bank" means Norwest Bank Minnesota, N.A., a subsidiary of
Norwest Corporation.
"NRSRO" means a nationally recognized statistical rating organization.
"Performa Funds" means the Funds set forth on the cover page of this
Statement of Additional Information.
"Portfolio" means, Disciplined Growth Portfolio, Small Cap Value
Portfolio, Strategic Value Bond Portfolio and Schroder Global Growth
Portfolio, each a separate portfolio of Core Trust or Schroder Core.
<PAGE>
"Schroder" means Schroder Capital Management International Inc., the
investment adviser to Schroder Global Growth Portfolio.
"Schroder Core" means Schroder Capital Funds, open-end, management
investment company registered under the 1940 Act.
"Schroder Core Board" means the Board of Trustees of Schroder Capital
Funds.
"SEC" means the U.S. Securities and Exchange Commission.
"S&P" means Standard & Poor's.
"Smith" means Smith Asset Management Group, L.P.
"Stock Index Futures" means futures contracts that relate to broadly
based stock indices.
"Subadviser" means Galliard, Smith or Schroder.
"Transfer Agent" means Norwest Bank acting in its capacity as transfer
and dividend disbursing agent of a Fund.
"Trust" means Norwest Advantage Funds, an open-end, management
investment company registered under the 1940 Act.
"U.S. Government Securities" means obligations issued or guaranteed by
the U.S. Government, its agencies or instrumentalities.
"1933 Act" means the Securities Act of 1933, as amended.
"1940 Act" means the Investment Company Act of 1940, as amended.
The Trust was originally organized under the name "Prime Value Funds, Inc." as a
Maryland corporation on August 29, 1986, and on July 30, 1993, was reorganized
as a Delaware business trust under the name "Norwest Funds." The Trust is
currently named "Norwest Advantage Funds."
Norwest is each Fund's investment adviser. Norwest also is the investment
adviser of each Portfolio other than Schroder Global Growth Portfolio. Norwest
Bank serves as the Trust's transfer agent, dividend disbursing agent and
custodian. Schroder serves as investment adviser to Schroder Global Growth
Portfolio.
Smith serves as investment subadviser of Performa Disciplined Growth Fund,
Disciplined Growth Portfolio, Performa Small Cap Value Fund and Small Cap Value
Portfolio. Galliard serves as investment subadviser of Performa Strategic Value
Bond Fund and Strategic Value Bond Portfolio. Schroder serves as an investment
subadviser of Performa Global Growth Fund.
Forum serves as the Trust's manager and as distributor of the Trust's shares.
FAS serves as each Fund's administrator.
<PAGE>
1. INVESTMENT POLICIES
The following discussion supplements that in the Prospectus concerning the
Funds' investments, investment techniques and strategies and the risks
associated therewith. The discussion below refers to the investment policies of
the Funds. Because the investment policies of a Fund are substantially similar
to the investment policies of the Portfolio in which the Fund invests, the
discussion below is equally applicable to the Portfolios.
SECURITY RATINGS INFORMATION
Moody's, S&P and other NRSROs are private services that provide ratings of the
credit quality of debt obligations, including convertible securities. A
description of the range of ratings assigned to various types of bonds and other
securities by several NRSROs is included in Appendix A to this SAI. The Funds
may use these ratings to determine whether to purchase, sell or hold a security.
Ratings, however, are general and are not absolute standards of quality.
Consequently, securities with the same maturity, interest rate and rating may
have different market prices. If an issue of securities ceases to be rated or if
its rating is reduced after it is purchased by a Fund (neither event requiring
sale of such security by a Fund), the Fund's Adviser will determine whether the
Fund should continue to hold the obligation. To the extent that the ratings
given by a NRSRO may change as a result of changes in such organizations or
their rating systems, the Adviser will attempt to substitute comparable ratings.
Credit ratings attempt to evaluate the safety of principal and interest payments
and do not evaluate the risks of fluctuations in market value. Also, rating
agencies may fail to make timely changes in credit ratings. An issuer's current
financial condition may be better or worse than a rating indicates.
A Fund may purchase unrated securities if its Adviser determines the security to
be of comparable quality to a rated security that the Fund may purchase. Unrated
securities may not be as actively traded as rated securities. A Fund may retain
securities whose rating has been lowered below the lowest permissible rating
category (or that are unrated and determined by its Adviser to be of comparable
quality to securities whose rating has been lowered below the lowest permissible
rating category) if the Adviser determines that retaining such security is in
the best interests of the Fund.
FIXED INCOME INVESTMENTS
PERFORMA STRATEGIC VALUE BOND FUND AND PERFORMA GLOBAL GROWTH FUND. Fixed-income
securities are subject to interest rate risk. There is normally an inverse
relationship between the market value of these securities and actual changes in
interest rates. Thus, an increase in interest rates generally produces a
decrease in market value of fixed income securities, while a decrease in
interest rates generally produces an increase in market value of fixed income
securities. Moreover, the longer the remaining maturity of a security, the
greater is the affect of interest rate changes on the market value of the
security.
Fixed income investments are subject to credit risk which refers to the ability
of the debtor (the issuer of the instrument) and any other obligor, to pay
principal and interest on the debt as it becomes due. Changes in the ability of
an issuer to make payments of interest and principal and the market's perception
of an issuer's creditworthiness will affect the market value of the debt
securities of that issuer. Obligations of issuers of debt securities are subject
to the provisions of bankruptcy, insolvency and other laws affecting the rights
and remedies of creditors which may restrict the ability of any issuer to pay,
when due, the principal of and interest on its debt securities. The possibility
exists that, the ability of any issuer to pay, when due, the principal of and
interest on its debt securities may become impaired.
Mortgage-related and asset-backed securities are subject to prepayment risk,
which refers to the fact that holders of these instruments may have all or any
part of their principal investment returned by the issuer as the mortgages or
other assets backing the investment are paid off. Prepayments during times of
declining interest rates tend to lower the return of a Fund. Prepayments also
may result in losses to a Fund if the securities were acquired at a premium
(that is, for an amount above the security's par value).
Certain debt instruments may also be subject to extension risk, which refers to
the change in total return on a debt instrument resulting from extension or
abbreviation of the instrument's maturity.
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Yields on fixed income securities are dependent on a variety of factors,
including the general conditions of the money market and other fixed income
securities markets, the size of a particular offering, the maturity of the
obligation and the rating of the issue. Fixed income securities with longer
maturities tend to produce higher yields and are generally subject to greater
price movements than obligations with shorter maturities. There is normally an
inverse relationship between the market value of securities sensitive to
prevailing interest rates and actual changes in interest rates. In other words,
an increase in interest rates will generally reduce the market value of
portfolio investments, and a decline in interest rates will generally increase
the value of portfolio investments.
Obligations of issuers of fixed income securities (including municipal
securities) are subject to the provisions of bankruptcy, insolvency, and other
laws affecting the rights and remedies of creditors, such as the Federal
Bankruptcy Reform Act of 1978. In addition, the obligations of municipal issuers
may become subject to laws enacted in the future by Congress, state
legislatures, or referenda extending the time for payment of principal and/or
interest, or imposing other constraints upon enforcement of such obligations or
upon the ability of municipalities to levy taxes. Changes in the ability of an
issuer to make payments of interest and principal and in the market's perception
of an issuer's creditworthiness will also affect the market value of the debt
securities of that issuer. The possibility exists, therefore, that, the ability
of any issuer to pay, when due, the principal of and interest on its debt
securities may become impaired.
U.S. GOVERNMENT SECURITIES
ALL FUNDS. U.S. Government Securities are obligations issued or guaranteed as to
principal and interest by the United States Government, its agencies or
instrumentalities. In addition to obligations of the U.S. Treasury, each Fund
may invest in U.S. Government Securities. Agencies, instrumentalities and
government sponsored enterprises that issue or guarantee debt securities and
which have been established or sponsored by the United States Government include
the Bank for Cooperatives, the Export-Import Bank, the Federal Farm Credit
System, the Federal Home Loan Banks, the Federal Home Loan Mortgage Corporation,
the Federal Intermediate Credit Banks, the Federal Land Banks, the Federal
National Mortgage Association, the Small Business Administration, the Government
National Mortgage Association and the Student Loan Marketing Association. Some
are supported by the right of the issuer to borrow from the Treasury; others are
supported by the discretionary authority of the U.S. Government to purchase the
agency's obligations; and still others are supported primarily or solely by the
creditworthiness of the issuer. No assurance can be given that the U.S.
government would provide financial support to government-sponsored agencies or
instrumentalities if it is not obligated to do so by law. Accordingly, although
these securities have historically involved little risk of loss of principal if
held to maturity, they may involve more risk than securities backed by the U.S.
Government's full faith and credit. A Fund will invest in the obligations of
such agencies or instrumentalities only when its Adviser believes that the
credit risk with respect thereto is consistent with the Fund's investment
policies.
BANK OBLIGATIONS
ALL FUNDS. Each Fund may invest in obligations of financial institutions,
including negotiable certificates of deposit, bankers' acceptances and time
deposits of U.S. banks (including savings banks and savings associations),
foreign branches of U.S. banks, foreign banks and their non-U.S. branches
(Eurodollars), U.S. branches and agencies of foreign banks (Yankee dollars), and
wholly-owned banking-related subsidiaries of foreign banks. A Fund's investments
in the obligations of foreign banks and their branches, agencies or subsidiaries
may be obligations of the parent, of the issuing branch, agency or subsidiary,
or both. Investments in foreign bank obligations are limited to banks and
branches located in countries which the Fund's Adviser believes do not present
undue risk.
A certificate of deposit is an interest-bearing negotiable certificate issued by
a bank against funds deposited in the bank. A bankers' acceptance is a
short-term draft drawn on a commercial bank by a borrower, usually in connection
with an international commercial transaction. Although the borrower is liable
for payment of the draft, the bank unconditionally guarantees to pay the draft
at its face value on the maturity date. Time deposits are non-negotiable
deposits with a banking institution that earn a specified interest rate over a
given period. Certificates of deposit and fixed time deposits, which are payable
at the stated maturity date and bear a fixed rate of interest, generally
<PAGE>
may be withdrawn on demand by a Fund but may be subject to early withdrawal
penalties which vary depending upon market conditions and the remaining maturity
of the obligation and could reduce the Fund's yield. Although fixed-time
deposits do not in all cases have a secondary market, there are no contractual
restrictions on a Fund's right to transfer a beneficial interest in the deposits
to third parties. Deposits subject to early withdrawal penalties or that mature
in more than seven days are treated as illiquid securities if there is no
readily available market for the securities.
The Funds may invest in Eurodollar certificates of deposit, which are U.S.
dollar denominated certificates of deposit issued by offices of foreign and
domestic banks located outside the United States; Yankee certificates of
deposit, which are certificates of deposit issued by a U.S. branch of a foreign
bank denominated in U.S. dollars and held in the United States; Eurodollar time
deposits ("ETDs"), which are U.S. dollar denominated deposits in a foreign
branch of a U.S. bank or a foreign bank; and Canadian time deposits, which are
essentially the same as ETDs, except that they are issued by Canadian offices of
major Canadian banks.
Investments that a Fund may make in instruments of foreign banks, branches or
subsidiaries may involve certain risks, including future political and economic
developments, the possible imposition of foreign withholding taxes on interest
income payable on such securities, the possible seizure or nationalization of
foreign deposits, differences from domestic banks in applicable accounting,
auditing and financial reporting standards, and the possible establishment of
exchange controls or other foreign governmental laws or restrictions applicable
to the payment of certificates of deposit or time deposits which might affect
adversely the payment of principal and interest on such securities held by the
Fund.
SHORT TERM DEBT SECURITIES/COMMERCIAL PAPER
ALL FUNDS. Except for variable master demand notes, issues of commercial paper
normally have maturities of less than nine months and fixed rates of return.
Variable amount master demand notes are unsecured demand notes that permit the
indebtedness thereunder to vary and provide for periodic adjustments in the
interest rate according to the terms of the instrument. Because master demand
notes are direct lending arrangements between a Fund and the issuer, they are
not normally traded. Although there is no secondary market in the notes, the
Fund may demand payment of principal and accrued interest at any time. Variable
amount master demand notes must satisfy the same criteria as set forth above for
commercial paper.
GUARANTEED INVESTMENT CONTRACTS
PERFORMA STRATEGIC VALUE BOND FUND. The Fund may invest in guaranteed investment
contracts ("GICs") issued by insurance companies. Pursuant to such contracts,
the Fund makes cash contributions to a deposit fund of the insurance company's
general account. The insurance company then credits to the deposit fund on a
monthly basis guaranteed interest at a rate based on an index. The GICs provide
that this guaranteed interest will not be less than a certain minimum rate. The
insurance company may assess periodic charges against a GIC for expense and
service costs allocable to it, and these charges will be deducted from the value
of the deposit fund. The Fund will purchase a GIC only when the Adviser has
determined that the GIC presents minimal credit risks to the Fund and is of
comparable quality to instruments in which the Fund may otherwise invest.
Because a Fund may not receive the principal amount of a GIC from the insurance
company on seven days' notice or less, the GIC may be considered an illiquid
investment. The term of a GIC will be one year or less.
In determining the average weighted portfolio maturity of the Fund, a GIC will
be deemed to have a maturity equal to the period of time remaining until the
next readjustment of the guaranteed interest rate. The interest rate on a GIC
may be tied to a specified market index and is guaranteed not to be less than a
certain minimum rate.
ZERO COUPON SECURITIES
PERFORMA STRATEGIC VALUE BOND FUND and PERFORMA GLOBAL GROWTH FUND. Zero coupon
securities are sold at original issue discount and pay no interest to holders
prior to maturity. Accordingly, these securities usually trade at a deep
discount from their face or par value and will be subject to greater
fluctuations of market value in response to changing interest rates than debt
obligations of comparable maturities which make current distributions of
interest. Federal tax law requires a Fund to accrue a portion of the discount at
which a zero-coupon security was purchased
<PAGE>
as income each year even though the Fund receives no interest payment in cash on
the security during the year. Interest on these securities, however, is reported
as income by the Fund and must be distributed to its shareholders. The Funds
distribute all of their net investment income, and may have to sell portfolio
securities to distribute imputed income, which may occur at a time when the
Adviser would not have chosen to sell such securities and which may result in a
taxable gain or loss.
Currently, U.S. Treasury securities issued without coupons include Treasury
bills and separately traded principal and interest components of securities
issued or guaranteed by the U.S. Treasury. These stripped components are traded
independently under the Treasury's Separate Trading of Registered Interest and
Principal of Securities ("STRIPS") program or as Coupons Under Book Entry
Safekeeping ("CUBES"). A number of banks and brokerage firms separate the
principal and interest portions of U.S. Treasury securities and sell them
separately in the form of receipts or certificates representing undivided
interests in these instruments. These instruments are generally held by a bank
in a custodial or trust account on behalf of the owners of the securities and
are known by various names, including Treasury Receipts ("TRs"), Treasury
Investment Growth Receipts ("TIGRs") and Certificates of Accrual on Treasury
Securities ("CATS"). In addition, corporate debt securities may be zero coupon
securities.
VARIABLE AND FLOATING RATE SECURITIES
PERFORMA STRATEGIC VALUE BOND FUND AND PERFORMA GLOBAL GROWTH FUND. The
securities in which the Funds invest (including mortgage- and asset-backed
securities) may have variable or floating rates of interest and, under certain
limited circumstances, may have varying principal amounts. These securities pay
interest at rates that are adjusted periodically accordingly to a specified
formula, usually with reference to one or more interest rate indices or market
interest rates (the "underlying index"). The interest paid on these securities
is a function primarily of the underlying index upon which the interest rate
adjustments are based. Similar to fixed rate debt instruments, variable and
floating rate instruments are subject to changes in value based on changes in
market interest rates or changes in the issuer's creditworthiness. The rate of
interest on securities purchased by a Fund may be tied to Treasury or other
government securities or indices on those securities as well as any other rate
of interest or index. Certain variable rate securities (including
mortgage-related securities or mortgage-backed securities) pay interest at a
rate that varies inversely to prevailing short-term interest rates (sometimes
referred to as inverse floaters). For instance, upon reset the interest rate
payable on a security may go down when the underlying index has risen. During
times when short-term interest rates are relatively low as compared to long-term
interest rates a Fund may attempt to enhance its yield by purchasing inverse
floaters. Certain inverse floaters may have an interest rate reset mechanism
that multiplies the effects of changes in the underlying index. This form of
leverage may have the effect of increasing the volatility of the security's
market value while increasing the security's, and thus the Fund's, yield.
There may not be an active secondary market for any particular floating or
variable rate instruments (particularly inverse floaters and similar
instruments) which could make it difficult for a Fund to dispose of the
instrument if the issuer defaulted on its repayment obligation during periods
that the Fund is not entitled to exercise any demand rights it may have. A Fund
could, for this or other reasons, suffer a loss with respect to an instrument.
Each Fund's Adviser monitors the liquidity of the Funds' investment in variable
and floating rate instruments, but there can be no guarantee that an active
secondary market will exist.
Many variable rate instruments include the right of the holder to demand
prepayment of the principal amount of the obligation prior to its stated
maturity and the right of the issuer to prepay the principal amount prior to
maturity. The payment of principal and interest by issuers of certain securities
purchased by the Funds may be guaranteed by letters of credit or other credit
facilities offered by banks or other financial institutions. Such guarantees
will be considered in determining whether a municipal security meets the Funds'
investment quality requirements.
Variable rate obligations purchased by the Funds may include participation
interests in variable rate obligations purchased by the Funds from banks,
insurance companies or other financial institutions that are backed by
irrevocable letters of credit or guarantees of banks. The Funds can exercise the
right, on not more than thirty days' notice, to sell such an instrument back to
the bank from which it purchased the instrument and draw on the letter of credit
for all or any part of the principal amount of a Fund's participation interest
in the instrument, plus accrued
<PAGE>
interest, but will do so only: (1) as required to provide liquidity to a Fund;
(2) to maintain a high quality investment portfolio; or (3) upon a default under
the terms of the demand instrument. Banks and other financial institutions
retain portions of the interest paid on such variable rate obligations as their
fees for servicing such instruments and the issuance of related letters of
credit, guarantees and repurchase commitments.
Certain securities may have an initial principal amount that varies over time
based on an interest rate index, and, accordingly, a Fund might be entitled to
less than the initial principal amount of the security upon the security's
maturity. The Funds intend to purchase such securities only when the Fund's
Adviser believes the interest income from the instrument justifies any principal
risks associated with the instrument. A Fund may attempt to limit any potential
loss of principal by purchasing similar instruments that are intended to provide
an offsetting increase in principal. There can be no assurance that a Fund will
be able to limit principal fluctuations and, accordingly, a Fund may incur
losses on those securities even if held to maturity without issuer default.
MORTGAGE-BACKED AND ASSET-BACKED SECURITIES
PERFORMA STRATEGIC VALUE BOND FUND. The Fund may invest in mortgage-related
securities, which represent an interest in a pool of mortgages originated by
lenders such as commercial banks, savings associations and mortgage bankers and
brokers. Mortgage-related securities may be issued by governmental or
government-related entities or by non-governmental entities. Interests in
mortgage-related securities differ from other forms of debt securities.
Mortgage-related securities provide monthly payments which consist of interest
and, in most cases, principal. In effect, these payments are a "pass-through" of
the monthly payments made by the individual borrowers on their mortgage loans,
net of any fees paid to the issuer or guarantor of the securities or a mortgage
loan servicer. Additional payments to holders of these securities are caused by
prepayments resulting from the sale or foreclosure of the underlying property or
refinancing of the underlying loans.
The market for certain mortgage-related securities may be limited. This may
increase the volatility of the price of a particular security and make it
difficult for the portfolio to sell a security.
The average life of a pass-through pool varies with the maturities of the
underlying mortgage instruments. In addition, a pool's terms may be shortened by
unscheduled or early payments of principal and interest on the underlying
mortgages. Prepayments with respect to securities during times of declining
interest rates will tend to lower the return of the Fund and may even result in
losses to the Fund if the securities were acquired at a premium. The occurrence
of mortgage prepayments is affected by various factors including the level of
interest rates, general economic conditions, the location and age of the
mortgage and other social and demographic conditions.
Adjustable rate mortgage-related securities ("ARMs") are securities that have
interest rates that are reset at periodic intervals, usually by reference to
some interest rate index or market interest rate. Although the rate adjustment
feature may act as a buffer to reduce sharp changes in the value of adjustable
rate securities, these securities are still subject to changes in value based on
changes in market interest rates or changes in the issuer's creditworthiness.
Because of the resetting of interest rates, adjustable rate securities are less
likely than non-adjustable rate securities of comparable quality and maturity to
increase significantly in value when market interest rates fall. Also, most
adjustable rate securities (or the underlying mortgages) are subject to caps or
floors. "Caps" limit the maximum amount by which the interest rate paid by the
borrower may change at each reset date or over the life of the loan and,
accordingly, fluctuation in interest rates above these levels could cause such
mortgage securities to "cap out" and to behave more like long-term, fixed-rate
debt securities.
ARMs may have less risk of a decline in value during periods of rapidly rising
rates, but they may also have less potential for capital appreciation than other
debt securities of comparable maturities due to the periodic adjustment of the
interest rate on the underlying mortgages and due to the likelihood of increased
prepayments of mortgages as interest rates decline. Furthermore, during periods
of declining interest rates, income to the Fund will decrease as the coupon rate
resets to reflect the decline in interest rates. During periods of rising
interest rates, changes in the coupon rates of the mortgages underlying the
Fund's ARMs may lag behind changes in market interest rates. This may result in
a slightly lower net value until the interest rate resets to market rates. Thus,
investors could suffer some principal loss
<PAGE>
if they sold Fund shares before the interest rates on the underlying mortgages
were adjusted to reflect current market rates.
Stripped mortgage-related securities are classes of mortgage-related securities
that receive different proportions of the interest and principal distributions
from the underlying assets. In the most extreme case, one class will be entitled
to receive all or a portion of the interest but none of the principal from the
underlying assets (the interest-only or "IO" class) and one class will be
entitled to receive all or a portion of the principal, but none of the interest
(the "PO" class). Currently, the Portfolio does not purchase IOs or POs.
TYPES OF CREDIT ENHANCEMENT
To lessen the effect of failures by obligors to make payments, mortgage-backed
securities may contain elements of credit enhancement. Credit enhancement falls
into two categories: (1) liquidity protection; and (2) protection against losses
resulting after default by an obligor on the underlying assets and collection of
all amounts recoverable directly from the obligor and through liquidation of the
collateral. Liquidity protection refers to the provisions of advances, generally
by the entity administering the pool of assets (usually the bank, savings
association or mortgage banker that transferred the underlying loans to the
issuer of the security), to ensure that the receipt of payments on the
underlying pool occurs in a timely fashion. Protection against losses resulting
after default and liquidation ensures ultimate payment of the obligations on at
least a portion of the assets in the pool. Such protection may be provided
through guarantees, insurance policies or letters of credit obtained by the
issuer or sponsor from third parties, through various means of structuring the
transaction or through a combination of such approaches. The Funds will not pay
any additional fees for such credit enhancement, although the existence of
credit enhancement may increase the price of security.
Examples of credit enhancement arising out of the structure of the transaction
include: (1) "senior-subordinated securities" (multiple class securities with
one or more classes subordinate to other classes as to the payment of principal
thereof and interest thereon, with the result that defaults on the underlying
assets are borne first by the holders of the subordinated class); (2) creation
of "spread accounts" or "reserve funds" (where cash or investments, sometimes
funded from a portion of the payments on the underlying assets are held in
reserve against future losses); and (3) "over-collateralization" (where the
scheduled payments on, or the principal amount of, the underlying assets exceeds
that required to make payment of the securities and pay any servicing or other
fees). The degree of credit enhancement provided for each issue generally is
based on historical information regarding the level of credit risk associated
with the underlying assets. Delinquency or loss in excess of that covered by
credit enhancement protection could adversely affect the return on an investment
in such a security.
ASSET-BACKED SECURITIES
PERFORMA STRATEGIC VALUE BOND FUND. The Fund may invest in asset-backed
securities, which represent direct or indirect participations in, or are secured
by and payable from, assets other than mortgage-related assets such as motor
vehicle installment sales contracts, leases of various types of real and
personal property and receivables from revolving credit card agreements.
Asset-backed securities, including adjustable rate asset-backed securities, have
yield characteristics similar to those of mortgage-related securities and,
accordingly, are subject to many of the same risks.
Assets are securitized through the use of trusts and special purpose
corporations that issue securities that are often backed by a pool of assets
representing the obligations of a number of different parties. Payments of
principal and interest may be guaranteed up to certain amounts and for a certain
time period by a letter of credit issued by a financial institution.
Asset-backed securities present certain risks that are not presented by
mortgage-backed debt securities or other securities in which a Fund may invest.
Primarily, these securities do not always have the benefit of a security
interest in comparable collateral. Credit card receivables are generally
unsecured and the debtors are entitled to the protection of a number of state
and Federal consumer credit laws, many of which give such debtors the right to
set off certain amounts owed on the credit cards, thereby reducing the balance
due. Automobile receivables generally are secured by automobiles. Most issuers
of automobile receivables permit the loan servicers to retain possession of
<PAGE>
the underlying obligations. If the servicer were to sell these obligations to
another party, there is a risk that the purchaser would acquire an interest
superior to that of the holders of the asset-backed securities. In addition,
because of the large number of vehicles involved in a typical issuance and the
technical requirements under state laws, the trustee for the holders of the
automobile receivables may not have a proper security interest in the underlying
automobiles. As a result, the risk that recovery on repossessed collateral might
be unavailable or inadequate to support payments on asset-backed securities is
greater for asset-backed securities than for mortgage-related securities.
Because asset-backed securities are relatively new, the market experience in
these securities is limited and the market's ability to sustain liquidity
through all phases of the market cycle has not been tested.
INTEREST-ONLY AND PRINCIPAL-ONLY SECURITIES
Some tranches of mortgage-backed securities, including CMOs, are structured so
that investors receive only principal payments generated by the underlying
collateral. Principal only securities ("POs") usually sell at a deep discount
from face value on the assumption that the purchaser will ultimately receive the
entire face value through scheduled payments and prepayments; however, the
market values of POs are extremely sensitive to prepayment rates, which, in
turn, vary with interest rate changes. If interest rates fall and prepayments
accelerate, the value of the PO will increase. On the other hand, if rates rise
and prepayments slow, the value of the PO will drop.
Interest only securities ("IOs") result from the creation of POs; thus, CMOs
with PO tranches also have IO tranches. IO securities sell at a deep discount to
their "notional" principal amount, namely the principal balance used to
calculate the amount of interest due. They have no face or par value and, as the
notional principal amortizes and prepays, the IO cash-flow declines.
Unlike POs, IOs increase in value when interest rates rise and prepayment rates
slow; consequently they are often used to "hedge" portfolios against interest
rate risk. If prepayment rates are high, the Fund may receive less cash back
than it initially invested.
INTEREST RATE PROTECTION TRANSACTIONS
ALL FUNDS. The Funds may enter into interest rate protection transactions,
including interest rate swaps, caps, collars and floors. Interest rate swap
transactions involve an agreement between two parties to exchange interest
payment streams that are based, for example, on variable and fixed rates that
are calculated on the basis of a specified amount of principal (the "notional
principal amount") for a specified period of time. Interest rate cap and floor
transactions involve an agreement between two parties in which the first party
agrees to make payments to the counterparty when a designated market interest
rate goes above (in the case of a cap) or below (in the case of a floor) a
designated level on predetermined dates or during a specified time period.
Interest rate collar transactions involve an agreement between two parties in
which the payments are made when a designated market interest rate either goes
above a designated ceiling or goes below a designated floor on predetermined
dates or during a specified time period.
A Fund may enter into interest rate protection transactions to preserve a return
or spread on a particular investment or portion of its portfolio or to protect
against any increase in the price of securities it anticipates purchasing at a
later date. The Funds intend to use these transactions as a hedge and not as a
speculative investment.
A Fund may enter into interest rate protection transactions on an asset-based
basis, depending on whether it is hedging its assets or its liabilities, and
will usually enter into interest rate swaps on a net basis, i.e., the two
payment streams are netted out, with the Fund receiving or paying, as the case
may be, only the net amount of the two payments. Inasmuch as these interest rate
protection transactions are entered into for good faith hedging purposes, and
inasmuch as segregated accounts will be established with respect to such
transactions, the Funds believe such obligations do not constitute senior
securities. The net amount of the excess, if any, of a Fund's obligations over
its entitlements with respect to each interest rate swap will be accrued on a
daily basis and an amount of cash, U.S. Government Securities or other liquid
assets having an aggregate net asset value at least equal to the accrued excess
will be maintained in a segregated account by a custodian that satisfies the
requirements of the 1940 Act. A Fund also will establish and maintain such
segregated accounts with respect to its total obligations under any interest
rate
<PAGE>
swaps that are not entered into on a net basis and with respect to any interest
rate caps, collars and floors that are written by the Fund.
A Fund will enter into interest rate protection transactions only with banks and
other institutions believed by the Adviser to present minimal credit risks. If
there is a default by the other party to such a transaction, the Fund will have
to rely on its contractual remedies (which may be limited by bankruptcy,
insolvency or similar laws) pursuant to the agreements related to the
transaction.
The swap market has grown substantially in recent years with a large number of
banks and investment banking firms acting both as principals and as agents
utilizing standardized swap documentation. Caps, collars and floors are more
recent innovations for which documentation is less standardized and,
accordingly, are less liquid than swaps.
HEDGING AND OPTION INCOME STRATEGIES
ALL FUNDS. Each Fund may from time to time use various derivative instruments to
protect its investment portfolio from movements in securities prices and
interest rates. The Funds may also use a variety of currency hedging techniques,
including forward currency contracts, to manage exchange rate risk when
investing in securities denominated in foreign currencies.
Derivative instruments include futures contracts on securities, financial
indices and foreign currencies, options on contracts and on securities,
financial indices and foreign currencies and interest rate swaps and
swap-related products. The Funds use derivative instruments primarily to hedge
the value of its portfolio against potential adverse movements in securities
prices, foreign currency markets or interest rates. To a limited extent, a Fund
may also use derivative instruments for non-hedging purposes such as seeking to
increase the Fund's income or otherwise seeking to enhance return.
The use of derivative instruments exposes a Fund to additional investment risks
and transaction costs. Risks inherent in the use of derivative instruments
include: (1) the risk that interest rates, securities prices and currency
markets will not move in the directions that the portfolio manager anticipates;
(2) imperfect correlation between the price of derivative instruments and
movements in the prices of the securities, interest rates or currencies being
hedged; (3) the fact that skills needed to use these strategies are different
from those needed to select portfolio securities; (4) inability to close out
certain hedged positions to avoid adverse tax consequences; (5) the possible
absence of a liquid secondary market for any particular instrument and possible
exchange-imposed price fluctuation limits, either of which may make it difficult
or impossible to close out a position when desired; (6) leverage risk, that is,
the risk that adverse price movements in an instrument can result in a loss
substantially greater than the Fund's initial investment in that instrument (in
some cases, such as with futures transactions, the potential loss is unlimited);
and (7) particularly in the case of privately negotiated instruments, the risk
that the counterparty will fail to perform its obligations, which could leave
the Fund worse off than if it had not entered into the position. There is no
assurance that any hedging or option income strategy will succeed in achieving
its intended result.
Although the Funds believe that the use of derivative instruments will be
beneficial, a Fund's performance could be worse than if the Fund had not used
such instruments if the investment adviser's judgment proves incorrect.
Each Fund may: (1) purchase or sell (write) put and call options on securities
to enhance the Fund's performance and (2) seek to hedge against a decline in the
value of securities owned by it or an increase in the price of securities which
it plans to purchase through the writing and purchase of exchange-traded and
over-the-counter options on individual securities or securities or financial
indices and through the purchase and sale of financial futures contracts and
related options. To the extent a Fund invests in foreign securities, it may also
invest in options on foreign currencies, foreign currency futures contracts and
options on those futures contracts. Use of these instruments is subject to
regulation by the SEC, the options and futures exchanges upon which options and
futures are traded or the CFTC.
Except as otherwise noted, the Funds will not use leverage in their option
income and hedging strategies. In the case of transactions entered into as a
hedge, a Fund will hold securities, currencies or other options or futures
positions
<PAGE>
whose values are expected to offset ("cover") its obligations thereunder. A Fund
will not enter into a hedging strategy that exposes it to an obligation to
another party unless it owns either: (1) an offsetting ("covered") position or
(2) cash, U.S. Government Securities or other liquid securities (or other assets
as may be permitted by the SEC) with a value sufficient at all times to cover
its potential obligations. When required by applicable regulatory guidelines,
the Funds will set aside cash, U.S. Government Securities or other liquid
securities (or other assets as may be permitted by the SEC) in a segregated
account with its custodian in the prescribed amount. Any assets used for cover
or held in a segregated account cannot be sold or closed out while the hedging
or option income strategy is outstanding, unless they are replaced with similar
assets. As a result, there is a possibility that the use of cover or segregation
involving a large percentage of a Fund's assets could impede portfolio
management or the Fund's ability to meet redemption requests or other current
obligations.
OPTIONS STRATEGIES
A Fund may purchase put and call options written by others and sell put and call
options covering specified individual securities, securities or financial
indices or currencies. A put option (sometimes called a "standby commitment")
gives the buyer of the option, upon payment of a premium, the right to deliver a
specified amount of currency to the writer of the option on or before a fixed
date at a predetermined price. A call option (sometimes called a "reverse
standby commitment") gives the purchaser of the option, upon payment of a
premium, the right to call upon the writer to deliver a specified amount of
currency on or before a fixed date, at a predetermined price. The predetermined
prices may be higher or lower than the market value of the underlying currency.
A Fund may buy or sell both exchange-traded and over-the-counter ("OTC")
options. A Fund will purchase or write an option only if that option is traded
on a recognized U.S. options exchange or if the Adviser believes that a liquid
secondary market for the option exists. When a Fund purchases an OTC option, it
relies on the dealer from which it has purchased the OTC option to make or take
delivery of the currency underlying the option. Failure by the dealer to do so
would result in the loss of the premium paid by the Fund as well as the loss of
the expected benefit of the transaction. OTC options and the securities
underlying these options currently are treated as illiquid securities by the
Funds.
Upon selling an option, a Fund receives a premium from the purchaser of the
option. Upon purchasing an option the Fund pays a premium to the seller of the
option. The amount of premium received or paid by the Fund is based upon certain
factors, including the market price of the underlying securities, index or
currency, the relationship of the exercise price to the market price, the
historical price volatility of the underlying assets, the option period, supply
and demand and interest rates.
Certain Funds may purchase call options on debt securities that the Adviser
intends to include in the Fund's portfolio in order to fix the cost of a future
purchase. Call options may also be purchased as a means of participating in an
anticipated price increase of a security on a more limited risk basis than would
be possible if the security itself were purchased. In the event of a decline in
the price of the underlying security, use of this strategy would serve to limit
the potential loss to the Fund to the option premium paid; conversely, if the
market price of the underlying security increases above the exercise price and
the Fund either sells or exercises the option, any profit eventually realized
will be reduced by the premium paid. A Fund may similarly purchase put options
in order to hedge against a decline in market value of securities held in its
portfolio. The put enables the Fund to sell the underlying security at the
predetermined exercise price; thus the potential for loss to the Fund is limited
to the option premium paid. If the market price of the underlying security is
lower than the exercise price of the put, any profit the Fund realizes on the
sale of the security would be reduced by the premium paid for the put option
less any amount for which the put may be sold.
An Adviser of a Fund may write call options when it believes that the market
value of the underlying security will not rise to a value greater than the
exercise price plus the premium received. Call options may also be written to
provide limited protection against a decrease in the market price of a security,
in an amount equal to the call premium received less any transaction costs.
Certain Funds may purchase and write put and call options on fixed income or
equity security indices in much the same manner as the options discussed above,
except that index options may serve as a hedge against overall fluctuations in
the fixed income or equity securities markets (or market sectors) or as a means
of participating in an
<PAGE>
anticipated price increase in those markets. The effectiveness of hedging
techniques using index options will depend on the extent to which price
movements in the index selected correlate with price movements of the securities
which are being hedged. Index options are settled exclusively in cash.
FOREIGN CURRENCY OPTIONS AND RELATED RISKS
A Fund may take positions in options on foreign currencies in order to hedge
against the risk of foreign exchange fluctuation on foreign securities the Fund
holds in its portfolio or which it intends to purchase. Options on foreign
currencies are affected by the factors discussed in "Hedging and Option Income
Strategies -- Options Strategies" and "Foreign Currency Transactions" which
influence foreign exchange sales and investments generally.
The value of foreign currency options is dependent upon the value of the foreign
currency relative to the U.S. dollar and has no relationship to the investment
merits of a foreign security. Because foreign currency transactions occurring in
the interbank market involve substantially larger amounts than those that may be
involved in the use of foreign currency options, a Fund may be disadvantaged by
having to deal in an odd lot market (generally consisting of transactions of
less than $1 million) for the underlying foreign currencies at prices that are
less favorable than for round lots.
To the extent that the U.S. options markets are closed while the market for the
underlying currencies remains open, significant price and rate movements may
take place in the underlying markets that cannot be reflected in the options
markets.
SPECIAL CHARACTERISTICS AND RISKS OF OPTIONS TRADING
A Fund may effectively terminate its right or obligation under an option
contract by entering into a closing transaction. For instance, if the Fund
wished to terminate its potential obligation to sell securities or currencies
under a call option it had written, a call option of the same type would be
purchased by the Fund. Closing transactions essentially permit the Fund to
realize profits or limit losses on its options positions prior to the exercise
or expiration of the option. In addition:
(1) The successful use of options depends upon the Adviser's ability to
forecast the direction of price fluctuations in the underlying securities or
currency markets, or in the case of an index option, fluctuations in the market
sector represented by the index.
(2) Options normally have expiration dates of up to nine months.
Options that expire unexercised have no value. Unless an option purchased by a
Fund is exercised or unless a closing transaction is effected with respect to
that position, a loss will be realized in the amount of the premium paid.
(3) A position in an exchange-listed option may be closed out only on
an exchange which provides a market for identical options. Most exchange-listed
options relate to equity securities. Exchange markets for options on foreign
currencies are relatively new, and the ability to establish and close out
positions on the exchanges is subject to the maintenance of a liquid secondary
market. Closing transactions may be effected with respect to options traded in
the over-the-counter markets (currently the primary markets for options on
foreign currencies) only by negotiating directly with the other party to the
option contract or in a secondary market for the option if such market exists.
There is no assurance that a liquid secondary market will exist for any
particular option at any specific time. If it is not possible to effect a
closing transaction, a Fund would have to exercise the option which it purchased
in order to realize any profit. The inability to effect a closing transaction on
an option written by a Fund may result in material losses to the Fund.
(4) A Fund's activities in the options markets may result in a higher
portfolio turnover rate and additional brokerage costs.
(5) When a Fund enters into an over-the-counter contract with a
counterparty, the Fund will assume the risk that the counterparty will fail to
perform its obligations, in which case the Fund could be worse off than if the
contract had not been entered into.
<PAGE>
FUTURES STRATEGIES
A futures contract is a bilateral agreement wherein one party agrees to accept,
and the other party agrees to make, delivery of cash, an underlying debt
security or the currency as called for in the contract at a specified future
date and at a specified price. For futures contracts with respect to an index,
delivery is of an amount of cash equal to a specified dollar amount times the
difference between the index value at the time of the contract and the close of
trading of the contract.
A Fund may sell interest rate futures contracts in order to continue to receive
the income from a fixed income security, while endeavoring to avoid part of or
all of a decline in the market value of that security which would accompany an
increase in interest rates.
A Fund may purchase index futures contracts for several reasons: to simulate
full investment in the underlying index while retaining a cash balance for fund
management purposes, to facilitate trading, to reduce transactions costs, or to
seek higher investment returns when a futures contract is priced more
attractively than securities in the index.
A Fund may purchase call options on a futures contract as a means of obtaining
temporary exposure to market appreciation at limited risk. This strategy is
analogous to the purchase of a call option on an individual security, in that it
can be used as a temporary substitute for a position in the security itself.
A Fund may sell foreign currency futures contracts to hedge against possible
variations in the exchange rate of the foreign currency in relation to the U.S.
dollar. In addition, a Fund may sell foreign currency futures contracts when its
Adviser anticipates a general weakening of foreign currency exchange rates that
could adversely affect the market values of the Fund's foreign securities
holdings. A Fund may purchase a foreign currency futures contract to hedge
against an anticipated foreign exchange rate increase pending completion of
anticipated transactions. Such a purchase would serve as a temporary measure to
protect the Fund against such increase. A Fund may also purchase call or put
options on foreign currency futures contracts to obtain a fixed foreign exchange
rate at limited risk. A Fund may write call options on foreign currency futures
contracts as a partial hedge against the effects of declining foreign exchange
rates on the value of foreign securities.
SPECIAL CHARACTERISTICS AND RISKS OF FUTURES AND RELATED OPTIONS TRADING
No price is paid upon entering into futures contracts; rather, a Fund is
required to deposit (typically with its custodian in a segregated account in the
name of the futures broker) an amount of cash or U.S. Government Securities
generally equal to 5% or less of the contract value. This amount is known as
initial margin. Subsequent payments, called variation margin, to and from the
broker, would be made on a daily basis as the value of the futures position
varies. When writing a call on a futures contract, variation margin must be
deposited in accordance with applicable exchange rules. The initial margin in
futures transactions is in the nature of a performance bond or good-faith
deposit on the contract that is returned to the Fund upon termination of the
contract, assuming all contractual obligations have been satisfied.
Holders and writers of futures and options on futures contracts can enter into
offsetting closing transactions, similar to closing transactions on options, by
selling or purchasing, respectively, a futures contract or related option with
the same terms as the position held or written. Positions in futures contracts
may be closed only on an exchange or board of trade providing a secondary market
for such futures contracts.
<PAGE>
Under certain circumstances, futures exchanges may establish daily limits in the
amount that the price of a futures contract or related option may vary either up
or down from the previous day's settlement price. Once the daily limit has been
reached in a particular contract, no trades may be made that day at a price
beyond that limit. Prices could move to the daily limit for several consecutive
trading days with little or no trading and thereby prevent prompt liquidation of
positions. In that event, it may not be possible for a Fund to close a position,
and in the event of adverse price movements, it would have to make daily cash
payments of variation margin. In addition:
(1) Successful use by a Fund of futures contracts and related options
will depend upon the Adviser's ability to predict movements in the direction of
the overall securities and currency markets, which requires different skills and
techniques than predicting changes in the prices of individual securities.
Moreover, futures contracts relate not to the current level of the underlying
instrument but to the anticipated levels at some point in the future; thus, for
example, trading of stock index futures may not reflect the trading of the
securities which are used to formulate an index or even actual fluctuations in
the relevant index itself.
(2) The price of futures contracts may not correlate perfectly with
movement in the price of the hedged currencies due to price distortions in the
futures market or otherwise. There may be several reasons unrelated to the value
of the underlying currencies which causes this situation to occur. As a result,
a correct forecast of general market trends may still not result in successful
hedging through the use of futures contracts over the short term.
(3) There is no assurance that a liquid secondary market will exist for
any particular contract at any particular time. In such event, it may not be
possible to close a position, and in the event of adverse price movements, the
Fund would continue to be required to make daily cash payments of variation
margin.
(4) Like other options, options on futures contracts have a limited
life. A Fund will not trade options on futures contracts on any exchange or
board of trade unless and until, in the Adviser's opinion, the market for such
options has developed sufficiently that the risks in connection with options on
futures transactions are not greater than the risks in connection with futures
transactions.
(5) Purchasers of options on futures contracts pay a premium in cash at
the time of purchase. This amount and the transaction costs is all that is at
risk. Sellers of options on futures contracts, however, must post an initial
margin and are subject to additional margin calls which could be substantial in
the event of adverse price movements.
(6) A Fund's activities in the futures markets may result in a higher
portfolio turnover rate and additional transaction costs in the form of added
brokerage commissions.
(7) Buyers and sellers of foreign currency futures contracts are
subject to the same risks that apply to the buying and selling of futures
generally. In addition, there are risks associated with foreign currency futures
contracts and their use as a hedging device similar to those associated with
options on foreign currencies described above. In addition, settlement of
foreign currency futures contracts must occur within the country issuing that
currency. Thus, a Fund must accept or make delivery of the underlying foreign
currency in accordance with any U.S. or foreign restrictions or regulations
regarding the maintenance of foreign banking arrangements by U.S. residents, and
the Fund may be required to pay any fees, taxes or charges associated with such
delivery which are assessed in the issuing country.
COMMODITY FUTURES CONTRACTS AND COMMODITY OPTIONS
A Fund may invest in certain financial futures contracts and options contracts
in accordance with the policies described in the Prospectus and above. A Fund
will only invest in futures contracts, options on futures contracts and other
options contracts that are subject to the jurisdiction of the CFTC after filing
a notice of eligibility and otherwise complying with the requirements of Section
4.5 of the rules of the CFTC. Pursuant to that section, a Fund will not enter
into any futures contract or option on a futures contract if, as a result, the
aggregate initial margin and premiums required to establish such positions would
exceed 5% of the Fund's net assets.
<PAGE>
FOREIGN CURRENCY TRANSACTIONS
ALL FUNDS. If a Fund invests in non-U.S. dollar denominated securities, changes
in foreign currency exchange rates will affect the value of the Fund's
investments. A Fund may temporarily hold funds in bank deposits in foreign
currencies pending the completion of certain investment programs. The value of
the assets of a Fund, as measured in U.S. dollars, may therefore be affected by
changes in foreign currency exchange rates and exchange control regulations. In
addition, a Fund may incur costs in connection with conversions between various
currencies.
A decline against the dollar in the value of currencies in which a Fund's
investments are denominated will result in a corresponding decline in the dollar
value of its assets. This risk tends to be heightened in the case of investing
in certain emerging market countries. For example, some currencies of emerging
market countries have experienced repeated devaluations relative to the U.S.
dollar, and major adjustments have periodically been made in certain of such
currencies. Some emerging market countries may also have managed currencies that
do not float freely against the dollar. Exchange rates are influenced generally
by the forces of supply and demand in the foreign currency markets and by
numerous other political and economic events occurring outside the United
States, many of which may be difficult, if not impossible, to predict. When
investing in foreign securities, the Fund usually effects currency exchange
transactions on a spot (i.e., cash) basis at the spot rate prevailing in the
foreign exchange market. The Fund incurs foreign exchange expenses in converting
assets from one currency to another.
The Funds may enter into foreign currency forward contracts to purchase or sell
foreign currencies in anticipation of currency requirements and to protect
against possible adverse movements in foreign exchange rates. A forward currency
contract is an obligation to purchase or sell a specific currency at a future
date, which may be any fixed number of days from the date of the contract agreed
upon by the parties, at a price set at the time of the contract. This method of
attempting to hedge the value of portfolio securities against a decline in the
value of a currency does not eliminate fluctuations in the underlying prices of
the securities and may expose the Fund to the risk that the counterparty is
unable to perform. Although such contracts may reduce the risk of loss to the
Fund due to a decline in the value of the currency sold, they also limit any
possible gain that might result should the value of such currency rise. The Fund
does not intend to maintain a net exposure to such contracts where the
fulfillment of obligations under such contracts would obligate it to deliver an
amount of foreign currency in excess of the value of its portfolio securities or
other assets denominated in the currency. The Fund will not enter into these
contracts for speculative purposes and will not enter into non-hedging currency
contracts. These contracts involve a risk of loss if the investment adviser
fails to predict currency values correctly. The Fund has no present intention to
enter into currency futures or options contracts, but may do so in the future.
A Fund may conduct foreign currency exchange transactions either on a spot
(i.e., cash) basis at the spot rate prevailing in the foreign currency exchange
market or by entering into foreign currency forward contracts ("forward
contracts") to purchase or sell foreign currencies. A forward contract involves
an obligation to purchase or sell a specific currency at a future date, which
may be any fixed number of days (usually less than one year) from the date of
the contract agreed upon by the parties, at a price set at the time of the
contract. These contracts are traded in the interbank market conducted directly
between currency traders (usually large commercial banks) and their customers
and involve the risk that the other party to the contract may fail to deliver
currency when due, which could result in losses to the Fund. A forward contract
generally has no deposit requirement, and no commissions are charged at any
stage for trades. Foreign exchange dealers realize a profit based on the
difference between the price at which they buy and sell various currencies.
A Fund may enter into forward contracts under two circumstances. First, with
respect to specific transactions, when the Fund enters into a contract for the
purchase or sale of a security denominated in a foreign currency, it may desire
to "lock in" the U.S. dollar price of the security. By entering into a forward
contract for the purchase or sale, for a fixed amount of dollars, of the amount
of foreign currency involved in the underlying security transactions, the Fund
may be able to protect itself against a possible loss resulting from an adverse
change in the relationship between the U.S. dollar and the subject foreign
currency during the period between the date the security is purchased or sold
and the date on which payment is made or received.
<PAGE>
Second, a Fund may enter into forward contracts in connection with existing
portfolio positions. For example, when an Adviser believes that the currency of
a particular foreign country may suffer a substantial decline against the U.S.
dollar, the Fund may enter into a forward contract to sell, for a fixed amount
of dollars, the amount of foreign currency approximating the value of some or
all of the Fund's investment securities denominated in such foreign currency.
The precise matching of the forward contract amounts and the value of the
securities involved will not generally be possible since the future value of
such securities in foreign currencies will change as a consequence of market
movements in the value of those securities between the date the forward contract
is entered into and the date it matures. The projection of short-term currency
market movement is extremely difficult, and the successful execution of a
short-term hedging strategy is highly uncertain. Forward contracts involve the
risk of inaccurate predictions of currency price movements, which may cause the
Fund to incur losses on these contracts and transaction costs. The Advisers do
not intend to enter into forward contracts on a regular or continuous basis and
will not do so if, as a result, a Fund will have more than 25 percent of the
value of its total assets committed to such contracts or the contracts would
obligate the Fund to deliver an amount of foreign currency in excess of the
value of the Fund's investment securities or other assets denominated in that
currency.
At or before the settlement of a forward contract, a Fund may either make
delivery of the foreign currency or terminate its contractual obligation to
deliver the foreign currency by purchasing an offsetting contract. If the Fund
chooses to make delivery of the foreign currency, it may be required to obtain
the currency through the conversion of assets of the Fund into the currency. The
Fund may close out a forward contract obligating it to purchase a foreign
currency by selling an offsetting contract. If the Fund engages in an offsetting
transaction, it will realize a gain or a loss to the extent that there has been
a change in forward contract prices. Additionally, although forward contracts
may tend to minimize the risk of loss due to a decline in the value of the
hedged currency, at the same time they tend to limit any potential gain which
might result should the value of such currency increase.
There is no systematic reporting of last sale information for foreign
currencies, and there is no regulatory requirement that quotations available
through dealers or other market sources be firm or revised on a timely basis.
Quotation information available is generally representative of very large
transactions in the interbank market. The interbank market in foreign currencies
is a global, around-the-clock market.
When required by applicable regulatory guidelines, a Fund will set aside cash,
U.S. Government Securities or other liquid assets in a segregated account with
its custodian in the prescribed amount.
EQUITY SECURITIES AND ADDITIONAL INFORMATION
COMMON AND PREFERRED STOCK AND WARRANTS.
PERFORMA DISCIPLINED GROWTH FUND, PERFORMA SMALL CAP VALUE FUND AND PERFORMA
GLOBAL GROWTH FUND. Each Fund may invest in common and preferred stock. Common
stockholders are the owners of the company issuing the stock and, accordingly,
vote on various corporate governance matters such as mergers. They are not
creditors of the company, but rather, upon liquidation of the company, are
entitled to their pro rata share of the company's assets after creditors
(including fixed income security holders) and preferred stockholders, if any,
are paid. Preferred stock is a class of stock having a preference over common
stock as to dividends and, generally, as to the recovery of investment. A
preferred stockholder is also a shareholder and not a creditor of the company.
Equity securities owned by a Fund may be traded in the over-the-counter market
or on a securities exchange, but may not be traded every day or in the volume
typical of securities traded on a major U.S. national securities exchange. As a
result, disposition by an Equity Fund of a security to meet withdrawals by
interest holders or otherwise may require a Fund to sell these securities at a
discount from market prices, to sell during periods when disposition is not
desirable, or to make many small sales over a lengthy period of time. The market
value of all securities, including equity securities, is based upon the market's
perception of value and not necessarily the "book value" of an issuer or other
objective measure of a company's worth.
The Funds may also invest in warrants, which are options to purchase an equity
security at a specified price (usually representing a premium over the
applicable market value of the underlying equity security at the time of the
warrant's issuance) and usually during a specified period of time. The price of
warrants does not necessarily move parallel to
<PAGE>
the prices of the underlying securities. Warrants have no voting rights, receive
no dividends and have no rights with respect to the assets of the issuer. Unlike
convertible securities and preferred stocks, warrants do not pay a fixed
dividend. Investments in warrants involve certain risks, including the possible
lack of a liquid market for the resale of the warrants, potential price
fluctuations as a result of speculation or other factors and failure of the
price of the underlying security to reach a level at which the warrant can be
prudently exercised. To the extent that the market value of the security that
may be purchased upon exercise of the warrant rises above the exercise price,
the value of the warrant will tend to rise. To the extent that the exercise
price equals or exceeds the market value of such security, the warrants will
have little or no market value. If a warrant is not exercised within the
specified time period, it will become worthless and the Fund will lose the
purchase price paid for the warrant and the right to purchase the underlying
security.
Equity securities owned by a Fund may be traded in the over-the-counter market
or on a regional securities exchange and may not be traded every day or in the
volume typical of securities trading on a national securities exchange. As a
result, disposition by a Fund of a portfolio security to meet redemptions by
shareholders or otherwise may require the Fund to sell these securities at a
discount from market prices, to sell during periods when disposition is not
desirable, or to make many small sales over a lengthy period of time. The market
value of all securities, including equity securities, is based upon the market's
perception of value and not necessarily the book value of an issuer or other
objective measure of a company's worth.
CONVERTIBLE SECURITIES
ALL FUNDS. A Fund may invest in convertible securities. A convertible security
is a bond, debenture, note, preferred stock or other security that may be
converted into or exchanged for a prescribed amount of common stock of the same
or a different issuer within a particular period of time at a specified price or
formula. A convertible security entitles the holder to receive interest paid or
accrued on debt or the dividend paid on preferred stock until the convertible
security matures or is redeemed, converted or exchanged. Before conversion,
convertible securities have characteristics similar to nonconvertible debt
securities in that they ordinarily provide a stable stream of income with
generally higher yields than those of common stocks of the same or similar
issuers. Convertible securities rank senior to common stock in a corporation's
capital structure but are usually subordinated to comparable nonconvertible
securities. Although no securities investment is without some risk, investment
in convertible securities generally entails less risk than in the issuer's
common stock. However, the extent to which such risk is reduced depends in large
measure upon the degree to which the convertible security sells above its value
as a fixed income security. Convertible securities have unique investment
characteristics in that they generally: (1) have higher yields than common
stocks, but lower yields than comparable non-convertible securities; (2) are
less subject to fluctuation in value than the underlying stocks since they have
fixed income characteristics; and (3) provide the potential for capital
appreciation if the market price of the underlying common stock increases.
The value of a convertible security is a function of its "investment value"
(determined by a comparison of its yield with the yields of other securities of
comparable maturity and quality that do not have a conversion privilege) and its
"conversion value" (the security's worth, at market value, if converted into the
underlying common stock). The investment value of a convertible security is
influenced by changes in interest rates, with investment value declining as
interest rates increase and increasing as interest rates decline. The credit
standing of the issuer and other factors also may have an effect on the
convertible security's investment value. The conversion value of a convertible
security is determined by the market price of the underlying common stock. If
the conversion value is low relative to the investment value, the price of the
convertible security is governed principally by its investment value and
generally the conversion value decreases as the convertible security approaches
maturity. To the extent the market price of the underlying common stock
approaches or exceeds the conversion price, the price of the convertible
security will be increasingly influenced by its conversion value. In addition, a
convertible security generally will sell at a premium over its conversion value
determined by the extent to which investors place value on the right to acquire
the underlying common stock while holding a fixed income security.
A convertible security may be subject to redemption at the option of the issuer
at a price established in the convertible security's governing instrument. If a
convertible security held by a Fund is called for redemption, the
<PAGE>
Fund will be required to permit the issuer to redeem the security, convert it
into the underlying common stock or sell it to a third party.
EQUITY-LINKED SECURITIES
ALL FUNDS. Equity-linked securities are securities that are convertible into or
based upon the value of, equity securities upon certain terms and conditions.
The following are three examples of equity-linked securities.
Preferred Equity Redemption Cumulative Stock ("PERCS") technically are preferred
stock with some characteristics of common stock. PERCS are mandatorily
convertible into common stock after a period of time, usually three years,
during which the investors' capital gains are capped, usually at 30%. Commonly,
PERCS may be redeemed by the issuer either at any time or when the issuer's
common stock is trading at a specified price level or better. The redemption
price starts at the beginning of the PERCS' duration period at a price that is
above the cap by the amount of the extra dividends the PERCS holder is entitled
to receive relative to the common stock over the duration of the PERCS and
declines to the cap price shortly before maturity of the PERCS. In exchange for
having the cap on capital gains and giving the issuer the option to redeem the
PERCS at any time or at the specified common stock price level, a Fund may be
compensated with a substantially higher dividend yield than that on the
underlying common stock. Funds that seek current income find PERCS attractive
because a PERCS provides a higher dividend income than that paid with respect to
a company's common stock.
Equity-Linked Securities ("ELKS") differ from ordinary debt securities, in that
the principal amount received at maturity is not fixed but is based on the price
of the issuer's common stock. ELKS are debt securities commonly issued in fully
registered form for a term of three years under an indenture trust. At maturity,
the holder of ELKS will be entitled to receive a principal amount equal to the
lesser of a cap amount, commonly in the range of 30% to 55% greater than the
current price of the issuer's common stock, or the average closing price per
share of the issuer's common stock, subject to adjustment as a result of certain
dilution events, for the 10 trading days immediately prior to maturity. Unlike
PERCS, ELKS are commonly not subject to redemption prior to maturity. ELKS
usually bear interest during the three-year term at a substantially higher rate
than the dividend yield on the underlying common stock. In exchange for having
the cap on the return that might have been received as capital gains on the
underlying common stock, the investing Fund may be compensated with the higher
yield, contingent on how well the underlying common stock does. Fund s that seek
current income find ELKS attractive because ELKS provide a higher dividend
income than that paid with respect to a company's common stock.
Liquid Yield Option Notes ("LYONs") differ from ordinary debt securities in that
the amount received prior to maturity is not fixed but is based on the price of
the issuer's common stock. LYONs are zero-coupon notes that sell at a large
discount from face value. For an investment in LYONs, a Fund will not receive
any interest payments until the notes mature, typically in 15 or 20 years, when
the notes are redeemed at face, or par, value. The yield on LYONs, typically, is
lower-than-market rate for debt securities of the same maturity, due in part to
the fact that the LYONs are convertible into common stock of the issuer at any
time at the option of the holder of the LYON. Commonly, LYONs are redeemable by
the issuer at any time after an initial period or if the issuer's common stock
is trading at a specified price level or better, or, at the option of the
holder, upon certain fixed dates. The redemption price typically is the purchase
price of the LYONs plus accrued original issue discount to the date of
redemption, which amounts to the lower-than-market yield. A Fund will receive
only the lower-than-market yield unless the underlying common stock increases in
value at a substantial rate. LYONs are attractive to investors when it appears
that they will increase in value due to the rise in value of the underlying
common stock.
HIGH YIELD/JUNK BONDS
PERFORMA STRATEGIC VALUE BOND FUND AND PERFORMA GLOBAL GROWTH FUND. Securities
rated less than Baa by Moody's or BBB by S&P are classified as non-investment
grade securities and are considered speculative by those rating agencies. Junk
bonds may be issued as a consequence of corporate restructurings, such as
leveraged buyouts, mergers, acquisitions, debt recapitalizations, or similar
events or by smaller or highly leveraged companies. Although the growth of the
high yield/high risk securities market in the 1980's had paralleled a long
economic expansion, many issuers subsequently have been affected by adverse
economic and market conditions. It should be
<PAGE>
recognized that an economic downturn or increase in interest rates is likely to
have a negative effect on: (1) the high yield bond market; (2) the value of high
yield/high risk securities; and (3) the ability of the securities' issuers to
service their principal and interest payment obligations, to meet their
projected business goals or to obtain additional financing. In addition, the
market for high yield/high risk securities, which is concentrated in relatively
few market makers, may not be as liquid as the market for investment grade
securities. Under adverse market or economic conditions, the market for high
yield/high risk securities could contract further, independent of any specific
adverse changes in the condition of a particular issuer. As a result, a Fund
could find it more difficult to sell these securities or may be able to sell the
securities only at prices lower than if such securities were widely traded.
Prices realized upon the sale of such lower rated or unrated securities, under
these circumstances, may be less than the prices used in calculating the Fund's
net asset value.
In periods of reduced market liquidity, prices of high yield/high risk
securities may become more volatile and may experience sudden and substantial
price declines. Also, there may be significant disparities in the prices quoted
for high yield/high risk securities by various dealers. Under such conditions,
the Fund under supervision of the Board of Trustees, may have to use subjective
rather than objective criteria to value its high yield/high risk securities
investments accurately and rely more heavily on the judgment of the Fund's
Adviser.
Prices for high yield/high risk securities also may be affected by legislative
and regulatory developments. For example, Congress has considered legislation to
restrict or eliminate the corporate tax deduction for interest payments or to
regulate corporate restructurings such as takeovers, mergers or leveraged
buyouts. These laws could adversely affect the Fund's net asset value and
investment practices, the market for high yield/high risk securities, the
financial condition of issuers of these securities and the value of outstanding
high yield/high risk securities.
Lower rated or unrated debt obligations also present risks based on payment
expectations. If an issuer calls the obligation for redemption, the Adviser may
have to replace the security with a lower yielding security, resulting in a
decreased return for investors. If a Fund experiences unexpected net
redemptions, the Adviser may be forced to sell the Fund's higher rated
securities, resulting in a decline in the overall credit quality of the Fund's
portfolio and increasing the exposure of the Fund to the risks of high
yield/high risk securities.
ILLIQUID AND RESTRICTED SECURITIES
ALL FUNDS. Each Fund may invest up to 15 percent of its net assets in securities
that at the time of purchase are illiquid. Historically, illiquid securities
have included securities subject to contractual or legal restrictions on resale
because they have not been registered under the 1933 Act ("restricted
securities"), securities that cannot be disposed of within seven days in the
ordinary course of business at approximately the amount at which a Fund has
valued the securities, and which are otherwise not readily marketable and
includes, among other things, purchased over-the-counter (OTC) options and
repurchase agreements not entitling the holder to repayment within seven days.
The Board and, in the case of the Portfolios, the Core Trust Board and Schroder
Core Board, has the ultimate responsibility for determining whether specific
securities are liquid or illiquid and has delegated the function of making
day-to-day determinations of liquidity to the Adviser of each Fund, pursuant to
guidelines approved by the applicable board. The Advisers take into account a
number of factors in reaching liquidity decisions, including but not limited to:
(1) the frequency of trades and quotations for the security; (2) the number of
dealers willing to purchase or sell the security and the number of other
potential buyers; (3) the willingness of dealers to undertake to make a market
in the security; and (4) the nature of the marketplace trades, including the
time needed to dispose of the security, the method of soliciting offers and the
mechanics of the transfer. The Advisers monitor the liquidity of the securities
held by each Fund and report periodically on such decisions to the Board, Core
Trust Board or Schroder Core Board, as applicable.
In connection with a Fund's original purchase of restricted securities, it may
negotiate rights with the issuer to have such securities registered for sale at
a later time. Further, the expenses of registration of restricted securities
that are illiquid may also be negotiated by a Fund with the issuer at the time
such securities are purchased by the Fund. When registration is required,
however, a considerable period may elapse between a decision to sell the
securities and the time the Fund would be permitted to sell such securities. A
similar delay might be experienced in attempting to sell such securities
pursuant to an exemption from registration. Thus, a Fund may not be able to
obtain as favorable a price as that prevailing at the time of the decision to
sell.
<PAGE>
Limitations on resale may have an adverse effect on the marketability of
portfolio securities and a Fund might also have to register restricted
securities in order to dispose of them, resulting in expense and delay. A Fund
might not be able to dispose of restricted or other securities promptly or at
reasonable prices and might thereby experience difficulty satisfying
redemptions. There can be no assurance that a liquid market will exist for any
security at any particular time.
A institutional market has developed for certain securities that are not
registered under the 1933 Act, including repurchase agreements, commercial
paper, foreign securities and corporate bonds and notes. Institutional investors
depend on an efficient institutional market in which the unregistered security
can be readily resold or on the issuer's ability to honor a demand for repayment
of the unregistered security. A security's contractual or legal restrictions on
resale to the general public or to certain institutions may not be indicative of
the liquidity of the security. If such securities are eligible for purchase by
institutional buyers in accordance with Rule 144A under the 1933 Act under
guidelines adopted by the Board, Core Trust Board and Schroder Core Board, the
Advisers may determine that such securities are not illiquid securities. These
guidelines take into account trading activity in the securities and the
availability of reliable pricing information, among other factors. If there is a
lack of trading interest in a particular Rule 144A security, a Fund 's holdings
of that security may be illiquid.
LOANS OF PORTFOLIO SECURITIES
ALL FUNDS. Each Fund may lend its investment securities to brokers, dealers and
financial institutions for the purpose of realizing additional income. The total
market value of securities loaned will not at any time exceed one-half of the
value of the total assets of the Fund. Lending portfolio securities may result
in the possible loss of rights in the collateral should the borrower fail
financially.
Under applicable regulatory requirements (which are subject to change), the loan
collateral must, on each business day, at least equal the market value of the
loaned securities and must consist of cash, bank letters of credit, U.S.
Government securities, or other cash equivalents in which the Fund is permitted
to invest. To be acceptable as collateral, letters of credit must obligate a
bank to pay amounts demanded by the Fund if the demand meets the terms of the
letter. Such terms and the issuing bank must be satisfactory to the Fund. In a
portfolio securities lending transaction, the Fund receives from the borrower an
amount equal to the interest paid or the dividends declared on the loaned
securities during the term of the loan as well as the interest on the collateral
securities, less any finders' or administrative fees the Fund pays in arranging
the loan. The Fund may share the interest it receives on the collateral
securities with the borrower as long as it realizes at least a minimum amount of
interest required by the lending guidelines established by the Core Trust or
Schroder Core Board. No Fund will lend its portfolio securities to any officer,
director, employee or affiliate of the Fund or the Fund's Adviser. The terms of
the Fund's loans must meet certain tests under the Internal Revenue Code and
permit the Fund to reacquire loaned securities on five business days' notice or
in time to vote on any important matter.
BORROWING AND TRANSACTIONS INVOLVING LEVERAGE
ALL FUNDS. Each Fund may borrow money for temporary or emergency purposes,
including the meeting of redemption requests, in amounts up to 33 1/3 percent of
the Fund's total assets. Borrowing involves special risk considerations.
Interest costs on borrowings may fluctuate with changing market rates of
interest and may partially offset or exceed the return earned on borrowed funds
(or on the assets that were retained rather than sold to meet the needs for
which funds were borrowed). Under adverse market conditions, a Fund might have
to sell portfolio securities to meet interest or principal payments at a time
when investment considerations would not favor such sales. Except as otherwise
noted, no Fund may purchase securities for investment while any borrowing
equaling five percent or more of the Fund's total assets is outstanding or
borrow for purposes other than meeting redemptions in an amount exceeding five
percent of the value of the Fund's total assets. A Fund's use of borrowed
proceeds to make investments would subject the Fund to the risks of leveraging.
Reverse repurchase agreements, short sales not against the box, dollar roll
transactions and other similar investments that involve a form of leverage have
characteristics similar to borrowings but are not considered borrowings if the
Fund maintains a segregated account.
<PAGE>
OTHER TECHNIQUES INVOLVING LEVERAGE
Utilization of leveraging involves special risks and may involve speculative
investment techniques. Certain Funds may borrow for other than temporary or
emergency purposes, lend their securities, enter reverse repurchase agreements,
and purchase securities on a when issued or forward commitment basis. In
addition, certain Funds may engage in dollar roll transactions. Each of these
transactions involve the use of "leverage" when cash made available to the Fund
through the investment technique is used to make additional portfolio
investments. A Fund uses these investment techniques only when the Fund's
Adviser believes that the leveraging and the returns available to the Fund from
investing the cash will provide shareholders a potentially higher return.
Leverage exists when a Fund achieves the right to a return on a capital base
that exceeds the amount the Fund has invested. Leverage creates the risk of
magnified capital losses which occur when losses affect an asset base, enlarged
by borrowings or the creation of liabilities, that exceeds the equity base of
the Fund. Leverage may involve the creation of a liability that requires the
Fund to pay interest (for instance, reverse repurchase agreements) or the
creation of a liability that does not entail any interest costs (for instance,
forward commitment transactions).
The risks of leverage include a higher volatility of the net asset value of the
Fund's shares and the relatively greater effect on the net asset value of the
shares caused by favorable or adverse market movements or changes in the cost of
cash obtained by leveraging and the yield obtained from investing the cash. So
long as a Fund is able to realize a net return on its investment portfolio that
is higher than interest expense incurred, if any, leverage will result in higher
current net investment income being realized by the Fund than if the Fund were
not leveraged. On the other hand, interest rates change from time to time as
does their relationship to each other depending upon such factors as supply and
demand, monetary and tax policies and investor expectations. Changes in such
factors could cause the relationship between the cost of leveraging and the
yield to change so that rates involved in the leveraging arrangement may
substantially increase relative to the yield on the obligations in which the
proceeds of the leveraging have been invested. To the extent that the interest
expense involved in leveraging approaches the net return on the Fund's
investment portfolio, the benefit of leveraging will be reduced, and, if the
interest expense on borrowings were to exceed the net return to shareholders,
the Fund's use of leverage would result in a lower rate of return than if the
Fund were not leveraged. Similarly, the effect of leverage in a declining market
could be a greater decrease in net asset value per share than if the Fund were
not leveraged. In an extreme case, if the Fund's current investment income were
not sufficient to meet the interest expense of leveraging, it could be necessary
for the Fund to liquidate certain of its investments at an inappropriate time.
The use of leverage may be considered speculative.
SEGREGATED ACCOUNT
In order to limit the risks involved in various transactions involving leverage,
the Funds' custodian will setup and maintain in a segregated account for each
Fund cash, U.S. Government Securities (or other assets as may be permitted by
the SEC) in accordance with SEC guidelines. The account's value, which is marked
to market daily, will be at least equal to the Fund's commitments under these
transactions. The Fund's commitments include the Fund's obligations to
repurchase securities under a reverse repurchase agreement and settle
when-issued and forward commitment transactions.
When a Fund invests in a derivative instrument, it may be required to segregate
cash and other assets with its custodian. Segregating assets could diminish the
Fund's return due to the opportunity losses of foregoing other potential
investments with the segregated assets.
MARGIN AND SHORT SALES
The Funds may make short sales of securities against the box. A short sale is
"against the box" to the extent that while the short position is open, the Fund
must own an equal amount of the securities sold short, or by virtue of ownership
of securities have the right, without payment of further consideration, to
obtain an equal amount of the securities sold short. Short sales against the box
may in certain cases be made to defer, for Federal income tax purposes,
recognition of gain or loss on the sale of securities "in the box" until the
short position is closed out. Under recently enacted legislation, if a Fund has
unrealized gain with respect to a long position and enters into a
<PAGE>
short sale against-the-box, the Fund generally will be deemed to have sold the
long position for tax purposes and thus will recognize gain. Prohibitions on
entering short sales other than against the box does not restrict a Fund's
ability to use short-term credits necessary for the clearance of portfolio
transactions and to make margin deposits in connection with permitted
transactions in options and futures contracts.
REVERSE REPURCHASE AGREEMENTS
Reverse repurchase agreements are transactions in which a Fund sells a security
and simultaneously commits to repurchase that security from the buyer at an
agreed upon price on an agreed upon future date. The resale price in a reverse
repurchase agreement reflects a market rate of interest that is not related to
the coupon rate or maturity of the sold security. For certain demand agreements,
there is no agreed upon repurchase date and interest payments are calculated
daily, often based upon the prevailing overnight repurchase rate.
Generally, a reverse repurchase agreement enables a Fund to recover for the term
of the reverse repurchase agreement all or most of the cash invested in the
portfolio securities sold and to keep the interest income associated with those
portfolio securities. Such transactions are only advantageous if the interest
cost to the Fund of the reverse repurchase transaction is less than the cost of
obtaining the cash otherwise. In addition, interest costs on the money received
in a reverse repurchase agreement may exceed the return received on the
investments made by a Fund with those monies. The use of reverse repurchase
agreement proceeds to make investments may be considered to be a speculative
technique.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS
Certain Funds may purchase or sell portfolio securities on a when-issued or
delayed delivery basis. When-issued or delayed delivery transactions arise when
securities are purchased by a Fund with payment and delivery to take place in
the future in order to secure what is considered to be an advantageous price and
yield to the Fund at the time it enters into the transaction. In those cases,
the purchase price and the interest rate payable on the securities are fixed on
the transaction date and delivery and payment may take place a month or more
after the date of the transaction. When a Fund enters into a delayed delivery
transaction, it becomes obligated to purchase securities and it has all of the
rights and risks attendant to ownership of the security, although delivery and
payment occur at a later date. To facilitate such acquisitions, the Fund will
maintain with its custodian a separate account with portfolio securities in an
amount at least equal to such commitments.
At the time a Fund makes the commitment to purchase securities on a when-issued
or delayed delivery basis, the Fund will record the transaction as a purchase
and thereafter reflect the value each day of such securities in determining its
net asset value. The value of the fixed income securities to be delivered in the
future will fluctuate as interest rates and the credit of the underlying issuer
vary. On delivery dates for such transactions, the Fund will meet its
obligations from maturities, sales of the securities held in the separate
account or from other available sources of cash. A Fund generally has the
ability to close out a purchase obligation on or before the settlement date,
rather than purchase the security. If a Fund chooses to dispose of the right to
acquire a when-issued security prior to its acquisition, it could, as with the
disposition of any other portfolio obligation, realize a gain or loss due to
market fluctuation.
To the extent a Fund engages in when-issued or delayed delivery transactions, it
will do so for the purpose of acquiring securities consistent with the Fund's
investment objectives and policies and not for the purpose of investment
leverage or to speculate in interest rate changes. A Fund will only make
commitments to purchase securities on a when-issued or delayed delivery basis
with the intention of actually acquiring the securities, but the Fund reserves
the right to dispose of the right to acquire these securities before the
settlement date if deemed advisable.
The use of when-issued and delayed delivery transactions enables the Fund to
hedge against anticipated changes in interest rates and prices. If an Adviser
were to forecast incorrectly the direction of interest rate movements, however,
a Fund advised by the Adviser might be required to complete when-issued or
delayed delivery transactions at prices inferior to the current market values.
When-issued securities and delayed delivery transactions may be
<PAGE>
sold prior to the settlement date, but a Fund enters into when-issued and
delayed delivery transaction only with the intention of actually receiving or
delivering the securities, as the case may be. In some instances, the
third-party seller of when-issued or delayed delivery securities may determine
prior to the settlement date that it will be unable to meet its existing
transaction commitments without borrowing securities. If advantageous from a
yield perspective, a Fund may, in that event, agree to resell its purchase
commitment to the third-party seller at the current market price on the date of
sale and concurrently enter into another purchase commitment for such securities
at a later date. As an inducement for a Fund to "roll over" its purchase
commitment, the Fund may receive a negotiated fee. When-issued securities may
include bonds purchased on a "when, as and if issued" basis under which the
issuance of the securities depends upon the occurrence of a subsequent event.
Any significant commitment of a Fund's assets to the purchase of securities on a
"when, as and if issued" basis may increase the volatility of the Fund's net
asset value. For purposes of the Funds' investment policies, the purchase of
securities with a settlement date occurring on a Public Securities Association
approved settlement date is considered a normal delivery and not a when-issued
or delayed delivery purchase.
REPURCHASE AGREEMENTS
Repurchase Agreements involve the purchase of a security by a Fund and a
simultaneous agreement by the seller (generally a bank or dealer) to repurchase
the security from the Fund at a specified date or upon demand. This technique
offers a method of earning income on idle cash. Repurchase agreements involve
the risk that the seller will fail to repurchase the security as agreed. In that
case, the Fund will bear the risk of market value fluctuations until the
security can be sold and may encounter delays and incur costs in liquidating the
security.
The Funds may invest in securities subject to repurchase agreements with U.S.
banks or broker-dealers. In a typical repurchase agreement, the seller of a
security commits itself at the time of the sale to repurchase that security from
the buyer at a mutually agreed-upon time and price. The repurchase price exceeds
the sale price, reflecting an agreed-upon interest rate effective for the period
the buyer owns the security subject to repurchase. The agreed-upon rate is
unrelated to the interest rate on that security. Each Adviser will, with respect
to the Funds it advises, monitor the value of the underlying security at the
time the transaction is entered into and at all times during the term of the
repurchase agreement to ensure that the value of the security always equals or
exceeds the repurchase price (including accrued interest). In the event of
default by the seller under the repurchase agreement, a Fund may have
difficulties in exercising its rights to the underlying securities and may incur
costs and experience time delays in connection with the disposition of such
securities. To evaluate potential risks, the Adviser reviews the
credit-worthiness of those banks and dealers with which the Fund enters into
repurchase agreements.
Securities subject to repurchase agreements will be held by the Fund's custodian
or another qualified custodian or in the Federal Reserve book-entry system.
Repurchase agreements are considered to be loans by a Fund for certain purposes
under the 1940 Act.
TEMPORARY DEFENSIVE POSITION
When business or financial conditions warrant, each Fund may assume a temporary
defensive position and invest without limit in cash or prime quality cash
equivalents, including: (1) short-term U.S. Government Securities; (2)
certificates of deposit, bankers' acceptances and interest-bearing savings
deposits of commercial banks doing business in the United States; (3) commercial
paper; (4) repurchase agreements; and (5) shares of "money market funds"
registered under the 1940 Act within the limits specified therein. During
periods when and to the extent that a Fund has assumed a temporary defensive
position, it may not be pursuing its investment objective. Apart from temporary
defensive purposes, a Fund may at any time invest a portion of its assets in
cash and cash equivalents or, in other investment companies to the extent
permitted under the 1940 Act.
RISKS OF INVESTING IN SMALLER COMPANIES
Investment in smaller capitalization companies carries greater risk than
investment in larger capitalization companies. Smaller capitalization companies
generally experience higher growth rates and higher failure rates than do larger
capitalization companies. The trading volume of smaller capitalization
companies' securities is normally lower than
<PAGE>
that of larger capitalization companies. Heavy trading generally has a
disproportionate effect on market price (tending to make prices rise more in
response to buying demand and fall more in response to selling pressure).
Accordingly, the net asset value of the Fund can be expected to fluctuate more
that that of other funds that invest in larger capitalization companies.
Smaller companies often have products and management personnel that have not
been tested by time or the marketplace and their financial resources may not be
as substantial as those of more established companies. Their securities (which
the Fund may purchase when they are offered to the public for the first time)
may have a limited trading market which can adversely affect the Fund's ability
to sell the securities and can result in such securities being priced lower than
otherwise might be the case. If other institutional investors trade in the
securities of a smaller company in which the Fund holds an interest, the Fund
may be forced to dispose of its holdings at prices lower than might otherwise be
obtained.
RISKS OF INTERNATIONAL INVESTING
All investments, domestic and foreign, involve risks. Investment in the
securities of foreign issuers may involve risks in addition to those normally
associated with investments in the securities of U.S. issuers. While the Fund
will generally invest only in securities of companies and governments in
countries that the investment adviser, in its judgment, considers both
politically and economically stable, all foreign investments are subject to
risks of foreign political and economic instability, adverse movements in
foreign exchange rates, the imposition or tightening of exchange controls or
other limitations on repatriation of foreign capital. Foreign investments are
subject to the risk of changes in foreign governmental attitudes towards private
investment that could lead to nationalization, increased taxation or
confiscation of Fund assets.
Moreover, (1) dividends payable on foreign securities may be subject to foreign
withholding taxes, thereby reducing the income earned by the Fund; (2)
commission rates payable on foreign portfolio transactions are generally higher
than in the United States; (3) accounting, auditing and financial reporting
standards differ from those in the United States, which means that less
information about foreign companies may be available than is generally available
about issuers of comparable securities in the United States.; (4) foreign
securities often trade less frequently and with lower volume than U.S.
securities and consequently may exhibit greater price volatility; and (5)
foreign securities trading practices, including those involving securities
settlement, may expose the Fund to increased risk in the event of a failed trade
or the insolvency of a foreign broker-dealer or registrar.
EMERGING MARKETS. Investing in emerging market countries generally presents
greater risk than does other foreign investing. In any emerging market country,
there is the increased possibility of expropriation of assets, confiscatory
taxation, nationalization of companies or industries, foreign exchange controls,
foreign investment controls on daily stock market movements, default in foreign
government securities, political or social instability, or diplomatic
developments that could affect investments in those countries. In the event of
expropriation, nationalization or other confiscation, the Fund could lose its
entire investment in the country involved. The economies of developing countries
are more likely to be adversely affected by trade barriers, exchange controls,
managed adjustments in relative currency values and other protectionist measures
imposed or negotiated by the countries with which they trade. There may also be
less monitoring and regulation of emerging markets and the activities of brokers
there. Investing may require that the Fund adopt special procedures, seek local
government approvals or take other actions that may incur costs for the Fund.
Certain emerging market countries may restrict investment by foreign investors.
These restrictions or controls may at times limit or preclude investment in
certain securities and may increase the costs and expenses of the Fund. Several
emerging market countries have experienced high, and in some periods extremely
high, rates of inflation in recent years. Inflation and rapid fluctuations in
inflation rates may adversely affect these countries' economies and securities
markets. Further, inflation accounting rules in some emerging market countries
may indirectly generate losses or profits for certain emerging market companies.
<PAGE>
CURRENCY FLUCTUATIONS AND DEVALUATIONS. Because the Fund will invest heavily in
non-U.S. currency-denominated securities, changes in foreign currency exchange
rates will affect the value of the Fund's investments. A decline against the
dollar in the value of currencies in which the Fund's investments are
denominated will result in a corresponding decline in the dollar value of the
Fund's assets. This risk is heightened in some emerging market countries.
The Fund may at times have to liquidate portfolio securities in order to acquire
sufficient U.S. dollars to fund redemptions of the Funds or other investors or
to purchase the U.S. dollars in order to pay its expenses. Changes in foreign
currency exchange rates may contribute to the need to liquidate portfolio
securities.
2. INVESTMENT LIMITATIONS
For purposes of all fundamental and nonfundamental investment policies of each
Fund: (1) the term 1940 Act includes the rules thereunder, SEC interpretations
and any exemptive order upon which the Fund may rely; and (2) the term Code
includes the rules thereunder, IRS interpretations and any private letter ruling
or similar authority upon which the Fund may rely.
Each Fund has adopted the investment policies listed in this section which are
nonfundamental policies unless otherwise noted. Except for its investment
objective, which is fundamental, the Fund has not adopted any fundamental
policies except as required by the 1940 Act or other applicable law.
Each Fund's investment objective and all investment policies of the Funds (and
Portfolios) that are designated as fundamental may not be changed without
approval of the holders of a majority of the outstanding voting securities of
the Fund. A majority of outstanding voting securities means the lesser of 67% of
the shares present or represented at a shareholders' meeting at which the
holders of more than 50% of the outstanding shares are present or represented,
or more than 50% of the outstanding shares.
Except as required by the 1940 Act or the Code, if any percentage restriction on
investment or utilization of assets is adhered to at the time an investment is
made, a later change in percentage resulting from a change in the market values
of a Fund's assets or purchases and redemptions of shares will not be considered
a violation of the limitation.
FUNDAMENTAL LIMITATIONS
Each Fund has adopted the following investment limitations which are fundamental
policies of the Fund. Each Portfolio has the same fundamental investment
policies as the Fund that invests in the Portfolio.
1. DIVERSIFICATION
No Fund may, with respect to 75% of its assets, purchase a
security (other than a U.S. Government Security or a security
of an investment company) if, as a result: (1) more than 5% of
the Fund's total assets would be invested in the securities of
a single issuer; or (2) the Fund would own more than 10% of
the outstanding voting securities of any single issuer.
2. INDUSTRY CONCENTRATION
No Fund may purchase a security if, as a result, more than 25%
of the Fund's total assets would be invested in securities of
issuers conducting their principal business activities in the
same industry. For purposes of this limitation, there is no
limit on: (1) investments in U.S. Government securities, in
repurchase agreements covering U.S. Government Securities, in
securities issued by the states, territories or possessions of
the United States ("municipal securities") or in foreign
government securities; or (2) investment in issuers domiciled
in a single jurisdiction. Notwithstanding anything to the
contrary, to the extent permitted by the 1940 Act, each Fund
may invest in one or more investment companies; provided that,
except to the extent the Fund invests in other investment
companies pursuant to Section 12(d)(1)(A) of the 1940 Act, the
Fund treats the assets of the investment companies in which it
invests as its own for purposes of this policy.
<PAGE>
For purposes of this policy: (1) "mortgage related
securities," as that term is defined in the 1934 Act, are
treated as securities of an issuer in the industry of the
primary type of asset backing the security; (2) financial
service companies are classified according to the end users of
their services (for example, automobile finance, bank finance
and diversified finance); and (3) utility companies are
classified according to their services (for example, gas, gas
transmission, electric and gas, electric and telephone).
3. BORROWING
No Fund may borrow money if, as a result, outstanding
borrowings would exceed an amount equal to 33 1/3% of the
Fund's total assets.
4. REAL ESTATE
No Fund may purchase or sell real estate unless acquired as a
result of ownership of securities or other instruments (but
this shall not prevent the Fund from investing in securities
or other instruments backed by real estate or securities of
companies engaged in the real estate business).
5. LENDING
No Fund may make loans to other parties. For purposes of this
limitation, entering into repurchase agreements, lending
securities and acquiring any debt security are not deemed to
be the making of loans.
No Fund may lend a security if, as a result, the amount of
loaned securities would exceed an amount equal to 33 1/3% of
the Fund's total assets.
6. COMMODITIES
No Fund may purchase or sell physical commodities unless
acquired as a result of ownership of securities or other
instruments (but this shall not prevent the Fund from
purchasing or selling options and futures contracts or from
investing in securities or other instruments backed by
physical commodities).
7. UNDERWRITING
No Fund may underwrite (as that term is defined in the 1933
Act) securities issued by other persons except, to the extent
that in connection with the disposition of the Fund's assets,
the Fund may be deemed to be an underwriter.
8. SENIOR SECURITIES
No Fund may issue senior securities except to the extent
permitted by the 1940 Act.
NONFUNDAMENTAL LIMITATIONS
Each Fund has adopted the following investment limitations which are not
fundamental policies of the Fund. A nonfundamental policy will not be used to
defeat a fundamental limitation of a Portfolio. Reference to a Fund includes
reference to its corresponding Portfolio, if applicable, which has the same
fundamental policies as the Fund. The policies of a Fund may be changed by the
Board, or in the case of its corresponding Portfolio, the Core Trust or Schroder
Core Board, if applicable.
<PAGE>
1. BORROWING
For purposes of the limitation on borrowing, the following
are not treated as borrowings to the extent they are fully
collateralized: (1) the delayed delivery of purchased
securities (such as the purchase of when-issued securities);
(2) reverse repurchase agreements; (3) dollar-roll
transactions; and (5) the lending of securities ("leverage
transactions"). (See Fundamental Limitation No. 3
"Borrowing" above.
2. LIQUIDITY
No Fund may invest more than 15% of its net assets in illiquid
assets such as: (1) securities that cannot be disposed of
within seven days at their then-current value; (2) repurchase
agreements not entitling the holder to payment of principal
within seven days; and (3) securities subject to restrictions
on the sale of the securities to the public without
registration under the 1933 Act ("restricted securities") that
are not readily marketable. Each Fund may treat certain
restricted securities as liquid pursuant to guidelines adopted
by the Board.
3. EXERCISING CONTROL OF ISSUERS
No Fund may make investments for the purpose of exercising
control of an issuer. Investments by a Fund in entities
created under the laws of foreign countries solely to
facilitate investment in securities in that country will not
be deemed the making of investments for the purpose of
exercising control.
4. OTHER INVESTMENT COMPANIES
No Fund may invest in securities of another investment
company, except to the extent permitted by the 1940 Act.
5. SHORT SALES AND PURCHASING ON MARGIN
No Fund may sell securities short, unless it owns or has the
right to obtain securities equivalent in kind and amount to
the securities sold short (short sales "against the box"), and
provided that transactions in futures contracts and options
are not deemed to constitute selling securities short.
No Fund may purchase securities on margin, except that a Fund
may use short-term credit for the clearance of the Fund's
transactions, and provided that initial and variation margin
payments in connection with futures contracts and options on
futures contracts shall not constitute purchasing securities
on margin.
6. OPTIONS, WARRANTS AND FUTURES CONTRACTS
No Fund may invest in futures or options contracts regulated
by the CFTC for: (1) bona fide hedging purposes within the
meaning of the rules of the CFTC and (2) for other purposes
if, as a result, no more than 5% of the Fund's net assets
would be invested in initial margin and premiums (excluding
amounts "in-the-money") required to establish the contracts.
No Fund: (1) will hedge more than 50% of its total assets by
selling futures contracts, buying put options, and writing
call options (so called "short positions"); (2) will buy
futures contracts or write put options whose underlying value
exceeds 25% of the Fund's total assets; and (3) will buy call
options with a value exceeding 5% of the Fund's total assets.
<PAGE>
3. PERFORMANCE AND ADVERTISING DATA
GENERAL. Quotations of performance may from time to time be used in
advertisements, sales literature, shareholder reports or other communications to
shareholders or prospective investors. All performance information supplied by
the Funds is historical and is not intended to indicate future returns. Each
Fund's yield and total return fluctuate in response to market conditions and
other factors. Investment return and principal value will fluctuate, and shares,
when redeemed, may be worth more or less than their original cost.Advertisements
may include comparisons of the Funds' performance relative to their peers,
mutual fund averages or recognized stock market indices. The Funds may measure
performance in terms of yield and total return.
Cumulative total return represents the actual rate of return on an investment
for a specified period. Cumulative total return is generally quoted for more
than one year (i.e., the life of the Fund), and does not show interim
fluctuations in the value of an investment.
Average annual total return represents the average annual percentage change of
an investment over a specified period. It is calculated by taking the cumulative
total return for the stated period and determining what constant annual return
would have produced the same cumulative return. Average annual returns for more
than one year tend to smooth out variations in the Fund's return and are not the
same as actual annual results.
Yield shows the rate of income a Fund earns on its investments as a percentage
of the Fund's share price. It is calculated by dividing the Fund's net
investment income for a 30-day period by the average number of shares entitled
to receive dividends and dividing the result by the Fund's net asset value per
share at the end of the 30-day period. Yield does not include changes in NAV.
Generally, yields are calculated according to standardized SEC formulas and may
not equal the income on an investor's account. Yield is usually quoted on an
annualized basis. An annualized yield represents the amount you would earn if
you remained in a Fund for a year and the Fund continued to have the same yield
for the entire year.
In performance advertising, the Funds may compare any of their performance
information with data published by independent evaluators such as Morningstar,
Inc., Lipper Analytical Services, Inc., or other companies which track the
investment performance of investment companies ("Fund Tracking Companies"). The
Funds may also compare any of their performance information with the performance
of recognized stock, bond and other indices, including but not limited to, the
Municipal Bond Buyers Indices, the Salomon Brothers Bond Index, Shearson Lehman
Bond Index, the Standard & Poor's 500 Composite Stock Price Index, Russell 2000
Index, Morgan Stanley - Europe, Australasia and Far East Index, Lehman Brothers
Intermediate Government Index, Lehman Brothers Intermediate Government/Corporate
Index, the Dow Jones Industrial Average, U.S. Treasury bonds, bills or notes and
changes in the Consumer Price Index as published by the U.S. Department of
Commerce. The Funds may refer to general market performances over past time
periods such as those published by Ibbotson Associates (for instance, its
"Stocks, Bonds, Bills and Inflation Yearbook"). In addition, the Funds may also
refer in such materials to mutual fund performance rankings and other data
published by Fund Tracking Companies. Performance advertising may also refer to
discussions of the Funds' and comparative mutual fund data and ratings reported
in independent periodicals, such as newspapers and financial magazines.
SEC YIELD CALCULATIONS
Although published yield information is useful to investors in reviewing a
Fund's performance, investors should be aware that each Fund's yield fluctuates
from day to day and that the Fund's yield for any given period is not an
indication or representation by the Fund of future yields or rates of return on
the Fund's shares. Norwest, Processing Organizations and others may charge their
customers, various retirement plans or other shareholders that invest in a Fund
fees in connection with an investment in a Fund, which will have the effect of
reducing the Fund's net yield to those shareholders. The yields of a Fund are
not fixed or guaranteed, and an investment in a Fund is not insured or
guaranteed. Accordingly, yield information may not necessarily be used to
compare shares of a Fund with investment alternatives which, like money market
instruments or bank accounts, may provide a fixed rate of
<PAGE>
interest. Also, it may not be appropriate to compare a Fund's yield information
directly to similar information regarding investment alternatives which are
insured or guaranteed.
FIXED INCOME AND EQUITY FUNDS
Standardized yields for the Funds used in advertising are computed by dividing a
Fund's dividends and interest earned (in accordance with specific standardized
rules) for a given 30 days or one month period, net of expenses, by the average
number of shares entitled to receive distributions during the period, dividing
this figure by the Fund's net asset value per share at the end of the period and
annualizing the result (assuming compounding of income in accordance with
specific standardized rules) in order to arrive at an annual percentage rate. In
general, interest income is reduced with respect to municipal securities
purchased at a premium over their par value by subtracting a portion of the
premium from income on a daily basis. In general, interest income is increased
with respect to municipal securities purchased at original issue at a discount
by adding a portion of the discount to daily income. Capital gains and losses
generally are excluded from these calculations.
Income calculated for the purpose of determining each Fund's standardized yield
differs from income as determined for other accounting purposes. Because of the
different accounting methods used, and because of the compounding assumed in
yield calculations, the yield quoted for a Fund may differ from the rate of
distribution the Fund paid over the same period or the rate of income reported
in the Fund's financial statements.
TOTAL RETURN CALCULATIONS
Standardized total returns quoted in advertising and sales literature reflect
all aspects of a Fund's return, including the effect of reinvesting dividends
and capital gain distributions, any change in the Fund's net asset value per
share over the period and maximum sales charge, if any, applicable to purchases
of the Fund's shares. Average annual total returns are calculated, through the
use of a formula prescribed by the SEC, by determining the growth or decline in
value of a hypothetical historical investment in a Fund over a stated period,
and then calculating the annually compounded percentage rate that would have
produced the same result if the rate of growth or decline in value had been
constant over the period. For example, a cumulative return of 100% over ten
years would produce an average annual return of 7.18%, which is the steady
annual rate that would equal 100% growth on a compounded basis in ten years. The
average annual total return is computed separately for each class of shares of a
Fund. While average annual returns are a convenient means of comparing
investment alternatives, investors should realize that the performance is not
constant over time but changes from year to year, and that average annual
returns represent averaged figures as opposed to the actual year-to-year
performance of the Funds.
Average annual total return is calculated by finding the average annual
compounded rates of return of a hypothetical investment, over such periods
according to the following formula:
P(1+T)n = ERV
Where:
P = a hypothetical initial payment of $1,000 T = average
annual total return n = number of years
ERV = ending redeemable value: ERV is the value, at the
end of the applicable period, of a hypothetical $1,000
payment made at the beginning of the applicable period
In addition to average annual returns, each Fund may quote unaveraged or
cumulative total returns reflecting the simple change in value of an investment
over a stated period. Total returns may be broken down into their components of
income and capital (including capital gains and changes in share price) in order
to illustrate the relationship of these factors and their contributions to total
return. Total returns, yields, and other performance information may be quoted
numerically or in a table, graph, or similar illustration. Period total return
is calculated according to the following formula:
<PAGE>
PT = (ERV/P-1)
Where:
PT = period total return
The other definitions are the same as in average annual total
return above
CORE-GATEWAY PERFORMANCE
When a Fund (a "Gateway fund") invests all of its investable assets in another
investment company (a "Portfolio") that has a performance history prior to the
investment by the Gateway fund, the Gateway fund will assume the performance
history of the Portfolio. That history may be restated to reflect the estimated
expenses of the Gateway fund.
OTHER ADVERTISEMENT MATTERS
The Funds may advertise other forms of performance. For example, the Funds may
quote unaveraged or cumulative total returns reflecting the change in the value
of an investment over a stated period. Average annual and cumulative total
returns may be quoted as a percentage or as a dollar amount, and may be
calculated for a single investment, a series of investments and/or a series of
redemptions over any time period. Total returns may be broken down into their
components of income and capital (including capital gains and changes in share
price) in order to illustrate the relationship of these factors and their
contributions to total return. Any performance information may be presented
numerically or in a table, graph or similar illustration.
The Funds may also include various information in their advertisements
including, but not limited to: (1) portfolio holdings and portfolio allocation
as of certain dates, such as portfolio diversification by instrument type, by
instrument, by location of issuer or by maturity; (2) statements or
illustrations relating to the appropriateness of types of securities and/or
mutual funds that may be employed by an investor to meet specific financial
goals, such as funding retirement, paying for children's education and
financially supporting aging parents; (3) information (including charts and
illustrations) showing the effects of compounding interest (compounding is the
process of earning interest on principal plus interest that was earned earlier;
interest can be compounded at different intervals, such as annually, quartile or
daily); (4) information relating to inflation and its effects on the dollar; for
example, after ten years the purchasing power of $25,000 would shrink to
$16,621, $14,968, $13,465 and $12,100, respectively, if the annual rates of
inflation were 4%, 5%, 6% and 7%, respectively; (5) information regarding the
effects of automatic investment and systematic withdrawal plans, including the
principal of dollar cost averaging; (6) descriptions of the Funds' portfolio
managers and the portfolio management staff of the Advisers or summaries of the
views of the portfolio managers with respect to the financial markets; (7) the
results of a hypothetical investment in a Fund over a given number of years,
including the amount that the investment would be at the end of the period; (8)
the effects of earning Federally and, if applicable, state tax-exempt income
from a Fund or investing in a tax-deferred account, such as an individual
retirement account or Section 401(k) pension plan; and (9) the net asset value,
net assets or number of shareholders of a Fund as of one or more dates.
As an example of compounding, $1,000 compounded annually at 9.00% will grow to
$1,090 at the end of the first year (an increase in $90) and $1,118 at the end
of the second year (an increase in $98). The extra $8 that was earned on the $90
interest from the first year is the compound interest. One thousand dollars
compounded annually at 9.00% will grow to $2,367 at the end of ten years and
$5,604 at the end of 20 years. Other examples of compounding are as follows: at
7% and 12% annually, $1,000 will grow to $1,967 and $3,106, respectively, at the
end of ten years and $3,870 and $9,646, respectively, at the end of twenty
years. These examples are for illustrative purposes only and are not indicative
of any Fund's performance.
The Funds may advertise information regarding the effects of automatic
investment and systematic withdrawal plans, including the principal of dollar
cost averaging. In a dollar cost averaging program, an investor invests a fixed
dollar amount in a Fund at period intervals, thereby purchasing fewer shares
when prices are high and more shares when prices are low. While such a strategy
does not insure a profit or guard against a loss in a declining market, the
investor's average cost per share can be lower than if fixed numbers of shares
had been purchased at
<PAGE>
those intervals. In evaluating such a plan, investors should consider their
ability to continue purchasing shares through periods of low price levels. For
example, if an investor invests $100 a month for a period of six months in a
Fund the following will be the relationship between average cost per share
($14.35 in the example given) and average price per share:
<TABLE>
<S> <C> <C> <C>
Systematic Share Shares
Period Investment Price Purchased
------ ---------- ----- ---------
1 $100 $10 10.00
2 $100 $12 8.33
3 $100 $15 6.67
4 $100 $20 5.00
5 $100 $18 5.56
6 $100 $16 6.25
---- --- ----
Total Invested $600 Average Price $15.17 Total Shares 41.81
</TABLE>
In connection with its advertisements each Fund may provide "shareholders
letters" which serve to provide shareholders or investors an introduction into
the Fund's, the Trust's or any of the Trust's service provider's policies or
business practices. For instance, advertisements may provide for a message from
Norwest or its parent corporation that Norwest has for more than 60 years been
committed to quality products and outstanding service to assist its customers in
meeting their financial goals and setting forth the reasons that Norwest
believes that it has been successful as a national financial services firm.
4. MANAGEMENT
The officers and Trustees of the Trust may be directors, officers or employees
of (and persons providing services to the Trust may include) Forum, its
affiliates or certain non-banking affiliates of Norwest.
TRUSTEES AND OFFICERS
TRUSTEES AND OFFICERS OF THE TRUST
The Trustees and officers of the Trust and their principal occupations during
the past five years and age as of October 1, 1998 are set forth below. Each
Trustee who is an "interested person" (as defined by the 1940 Act) of the Trust
is indicated by an asterisk.
John Y. Keffer, Chairman and President,* Age 54.
President and Owner, Forum Financial Services, Inc. (a registered
broker-dealer), Forum Administrative Services, Limited Liability
Company (a mutual fund administrator), Forum Financial Corp. (a
registered transfer agent), and other companies within the Forum
Financial Group of companies. Mr. Keffer is a Director, Trustee and/or
officer of various registered investment companies for which Forum
Financial Services, Inc. or its affiliates serves as manager,
administrator or distributor. His address is Two Portland Square,
Portland, Maine 04101.
Robert C. Brown, Trustee,* Age 65.
Director, Federal Farm Credit Banks Funding Corporation and Farm Credit
System Financial Assistance Corporation since February 1993. Prior
thereto, he was Manager of Capital Markets Group, Norwest Corporation
(a multi-bank holding company and parent of Norwest), until 1991. His
address is 1431 Landings Place, Sarasota, Florida 34231.
<PAGE>
Donald H. Burkhardt, Trustee, Age 70.
Principal of The Burkhardt Law Firm. His address is 777 South Steele
Street, Denver, Colorado 80209.
James C. Harris, Trustee, Age 76.
President and sole Director of James C. Harris & Co., Inc. (a
financial consulting firm). Mr. Harris is also a liquidating trustee
and former Director of First Midwest Corporation (a small business
investment company). His address is 6950 France Avenue South,
Minneapolis, Minnesota 55435.
Richard M. Leach, Trustee, Age 63.
President of Richard M. Leach Associates (a financial consulting firm)
since 1992. Prior thereto, Mr. Leach was Senior Adviser of Taylor
Investments (a registered investment adviser), a Director of
Mountainview Broadcasting (a radio station) and Managing Director of
Digital Techniques, Inc. (an interactive video design and
manufacturing company). His address is P.O. Box 1888, New London, New
Hampshire 03257.
John S. McCune,* Trustee, Age 46.
President, Norwest Investment Services, Inc. (a broker-dealer
subsidiary of Norwest bank) His address is 608 2nd Avenue South,
Minneapolis, Minnesota 55479.
Timothy J. Penny, Trustee, Age 45.
Senior Counselor to the public relations firm of Himle-Horner since
January 1995 and Senior Fellow at the Humphrey Institute, Minneapolis,
Minnesota (a public policy organization) since January 1995. Prior
thereto Mr. Penny was the Representative to the United States Congress
from Minnesota's First Congressional District. His address is 500
North State Street, Waseca, Minnesota 56095.
Donald C. Willeke, Trustee, Age 56.
Principal of the law firm of Willeke & Daniels. His address is 201
Ridgewood Avenue, Minneapolis, Minnesota 55403.
Sara M. Morris, Vice President and Treasurer, Age 33.
Managing Director, Forum Financial Services, Inc., with which she has
been associated since 1994. Prior thereto, from 1991 to 1994 Ms.
Morris was Controller of Wright Express Corporation (a national credit
card company) and for six years prior thereto was employed at Deloitte
& Touche LLP as an accountant. Ms. Morris is also an officer of
various registered investment companies for which Forum Administrative
Services, LLC or Forum Financial Services, Inc. serves as manager,
administrator and/or distributor. Her address is Two Portland Square,
Portland, Maine 04101.
David I. Goldstein, Vice President and Secretary, Age 35.
Managing Director and General Counsel, Forum Financial Services, Inc.,
with which he has been associated since 1991. Mr. Goldstein is also an
officer of various registered investment companies for which Forum
Administrative Services, LLC or Forum Financial Services, Inc. serves
as manager, administrator and/or distributor. His address is Two
Portland Square, Portland, Maine 04101.
Thomas G. Sheehan, Vice President and Assistant Secretary, Age 42.
<PAGE>
Managing Director and Counsel, Forum Financial Services, Inc., with
which he has been associated since 1993. Prior thereto, Mr. Sheehan
was Special Counsel to the Division of Investment Management of the
SEC. Mr. Sheehan is also an officer of various registered investment
companies for which Forum Administrative Services, LLC or Forum
Financial Services, Inc. serves as manager, administrator and/or
distributor. His address is Two Portland Square, Portland, Maine
04101.
Pamela J. Wheaton, Assistant Treasurer, Age 38.
Manager - Tax and Compliance Group, Forum Financial Services, Inc.,
with which she has been associated since 1989. Ms. Wheaton is also an
officer of various registered investment companies for which Forum
Administrative Services, LLC or Forum Financial Services, Inc. serves
as manager, administrator and/or distributor. Her address is Two
Portland Square, Portland, Maine 04101.
Don L. Evans, Assistant Secretary, Age 49.
Assistant Counsel, Forum Financial Services, Inc., with which he has
been associated since 1995. Prior thereto, Mr. Evans was associated
with the law firm of Bisk & Lutz and prior thereto was associated with
the law firm of Weiner & Strother. Mr. Evans is also an officer of
various registered investment companies for which Forum Administrative
Services, LLC or Forum Financial Services, Inc. serves as manager,
administrator and/or distributor. His address is Two Portland Square,
Portland, Maine.
Edward C. Lawrence, Assistant Secretary, Age 28.
Fund Administrator, Forum Financial Services, Inc., with which he has
been associated since 1997. Prior thereto, Mr. Lawrence was a
self-employed contractor on antitrust cases with the law firm of White
& Case. After graduating from law school, from 1994-1996, Mr. Lawrence
worked as an assistant public defender for the Missouri State Public
Defender's Office. His address is Two Portland Square, Portland, Maine
04101.
COMPENSATION OF TRUSTEES AND OFFICERS OF THE TRUST
Each Trustee of the Trust is paid a retainer fee in the total amount of $5,000,
payable quarterly, for the Trustee's service to the Trust and to Norwest Select
Funds, a separate registered open-end management investment company for which
each Trustee serves as trustee. In addition, each Trustee is paid $3,000 for
each regular Board meeting attended (whether in person or by electronic
communication) and is paid $1,000 for each Committee meeting attended on a date
when a Board meeting is not held. Trustees are also reimbursed for travel and
related expenses incurred in attending meetings of the Board. Mr. Keffer
received no compensation for his services as Trustee for the past year or
compensation or reimbursement for his associated expenses. In addition, no
officer of the Trust is compensated by the Trust.
<PAGE>
Mr. Burkhardt, Chairman of the Trust's and Norwest Select Funds' audit
committees, receives additional compensation of $6,000 from the Trust and
Norwest Select Funds allocated pro rata between the Trust and Norwest Select
Funds based upon relative net assets, for his services as Chairman. Each Trustee
was elected by shareholders on April 30, 1997.
The following table provides the aggregate compensation paid to the Trustees of
the Trust by the Trust and Norwest Select Funds, combined. Norwest Select Funds
have a December 31 fiscal year end. Information is presented for the twelve
month period ended May 31, 1998, which was the fiscal year end of all of the
Trust's portfolios.
<TABLE>
<S> <C> <C>
TOTAL COMPENSATION FROM
TOTAL COMPENSATION THE TRUST AND NORWEST
FROM THE TRUST SELECT FUNDS
-------------- ------------
Mr. Brown
Mr. Burkhardt
Mr. Harris
Mr. Leach
Mr. Penny
Mr. Willeke
</TABLE>
Neither the Trust nor Norwest Select Funds has adopted any form of retirement
plan covering Trustees or officers. For the twelve month period ended May 31,
1998 total expenses of the Trustees (other than Mr. Keffer) was $ and total
expenses of the trustees of Norwest Select Funds was $.
As of October 1, 1998, the Trustees and officers of the Trust in the aggregate
owned less than 1% of the outstanding shares of the Funds.
TRUSTEES AND OFFICERS OF CORE TRUST
The Trustees and officers of Core Trust and their principal occupations during
the past five years and ages are set forth below. Each Trustee who is an
"interested person" (as defined by the 1940 Act) of Core Trust is indicated by
an asterisk. Messrs. Keffer, Goldstein, Sheehan, and Misses. Clark and Wheaton,
officers of Core Trust, all currently serve as officers of the Trust.
Accordingly, for background information pertaining to these officers, (see
"Management - Trustees and Officers - Trustees and Officers of the Trust.")
John Y. Keffer,* Trustee, Chairman and President (age 55)
Costas Azariadis, Trustee (age 54)
Professor of Economics, University of California, Los Angeles, since
July 1992. Prior thereto, Dr. Azariadis was Professor of Economics at
the University of Pennsylvania. His address is Department of Economics,
University of California, Los Angeles, 405 Hilgard Avenue, Los Angeles,
California 90024.
James C. Cheng, Trustee (age 55)
President of Technology Marketing Associates (a marketing consulting
company) since September 1991. His address is Two Portland Square,
Portland, Maine 04101.
J. Michael Parish, Trustee (age 54)
Partner at the law firm of Reid & Priest. Prior to 1995, Mr. Parish was
a partner at Winthrop Stimson Putnam & Roberts since 1989. His address
is 40 West 57th Street, New York, New York 10019.
Sara M. Morris, Vice President and Treasurer (age 34)
<PAGE>
David I. Goldstein, Vice President and Secretary (age 36)
Thomas G. Sheehan, Vice President and Assistant Secretary (age 43)
Pamela J. Wheaton, Assistant Treasurer, Age 38.
TRUSTEES AND OFFICERS OF SCHRODER CORE
The Trustees and officers of Schroder Core and their principal occupations
during the past five years and ages are set forth below. Each Trustee who is an
"interested person" (as defined by the 1940 Act) of Core Trust is indicated by
an asterisk. Messrs. Keffer and Sheehan, officers of Schroder Core, currently
serve as officers of the Trust. Accordingly, for background information
pertaining to these officers, (see "Management - Trustees and Officers -
Trustees and Officers of the Trust.") Accordingly, for background information
pertaining to her, (see "Management - Trustees and Officers - Trustees and
Officers of Core Trust.")
PETER E. GUERNSEY, Oyster Bay, New York - Trustee of the Trust -
Insurance Consultant since August 1986; prior thereto Senior Vice
President, Marsh & McLennan, Inc., insurance brokers.
JOHN I. HOWELL, Greenwich, Connecticut - Trustee of the Trust - Private
Consultant since February 1987; Honorary Director, American
International Group, Inc.; Director, American International Life
Assurance Company of New York.
CLARENCE F. MICHALIS, 44 East 64th Street, New York, New York - Trustee
of the Trust - Chairman of the Board of Directors, Josiah Macy, Jr.
Foundation (charitable foundation).
MARK J. SMITH(b), 33 Gutter Lane, London, England - President and
Trustee of the Trust - Senior Vice President and Director of Schroder;
Director and Senior Vice President, Schroder Fund Advisors Inc..
ROBERT G. DAVY, 787 Seventh Avenue, New York, New York - a
Vice-President of the Trust - Director of Schroder and Schroder Capital
Management International Ltd. since 1994; Senior Vice President and
Director of Schroder; prior thereto, employed by various affiliates of
Schroders plc in various positions in the investment research and
portfolio management areas since 1986.
MARGARET H. DOUGLAS-HAMILTON(b)(c), 787 Seventh Avenue, New York, New
York - Vice President of the Trust - Secretary of SCM since July 1995;
Senior Vice President and General Counsel of Schroders U.S. Holdings
Inc. since May 1987; prior thereto, partner of Sullivan & Worcester, a
law firm.
RICHARD R. FOULKES, 787 Seventh Avenue, New York, New York - a Vice
President of the Trust; Deputy Chairman of Schroder since October 1995;
Director and Executive Vice President of Schroder Capital Management
International Ltd. since 1989.
BARBARA GOTTLIEB(c), 787 Seventh Avenue, New York, New York - Assistant
Secretary of the Trust and Vice President of Schroder Fund Advisors
Inc.; prior thereto held various positions with SWIS affiliates.
JOHN Y. KEFFER, 2 Portland Square, Portland, Maine - Vice President of
the Trust. President of Forum Financial Services, Inc., the Fund's
sub-administrator, and Forum Financial Corp., the Fund's transfer and
dividend disbursing agent and fund accountant.
JANE P. LUCAS, (c) 787 Seventh Avenue, New York, New York - Vice
President of the Trust - Director and Senior Vice President Schroder;
Director of SCM since September 1995; Director of Schroder Fund
Advisors Inc.; Assistant Director Schroder Investment Management Ltd.
since June 1991.
<PAGE>
GERARDO MACHADO, 787 Seventh Avenue, New York, New York - Assistant
Secretary of the Trust - Associate, Schroder.
CATHERINE A. MAZZA, 787 Seventh Avenue, New York, New York - Vice
President of the Trust - President of Schroder Fund Advisors Inc.
since 1997; Group Vice President of Schroder; prior thereto, held
various marketing positions at Alliance Capital, an investment
adviser, since July 1985.
THOMAS G. SHEEHAN, 2 Portland Square, Portland, Maine - Assistant
Treasurer and Assistant Secretary of the Trust - Counsel, Forum
Financial Services, Inc. since 1993; prior thereto, Special Counsel,
U.S. Securities and Exchange Commission, Division of Investment
Management, Washington, D.C.
FARIBA TALEBI, 787 Seventh Avenue, New York, New York - Vice President
of the Trust - Group Vice President of Schroder, employed in various
positions in the investment research and portfolio management areas
since 1987.
JOHN A. TROIANO(b), 787 Seventh Avenue, New York, New York - Vice
President of the Trust - Managing Director and Senior Vice President
of Schroder since October 1995; Director of Schroder Fund Advisors
Inc.; Director of Schroder since 1991; prior thereto, employed by
various affiliates of Schroder in various positions in the investment
research and portfolio management areas since 1981.
IRA L. UNSCHULD, 787 Seventh Avenue, New York, New York - Vice
President of the Trust - Vice President of Schroder since April, 1993
and an Associate from July, 1990 to April, 1993; prior to July, 1990,
employed by various financial institutions as a securities or
financial analyst.
ALEXANDRA POE, 787 Seventh Avenue, New York, New York - Secretary and
Vice President of the Trust First Vice President of Schroder; Fund
Counsel and Senior Vice President of Schroder Fund Advisors Inc. since
August 1996; prior thereto an investment management attorney with
Gordon Altman Butowsky Weitzen Shalov & Wein since July 1994; prior
thereto counsel and Vice President of Citibank, N.A. since 1989.
MARY KUNKEMUELLER, 787 Seventh Avenue, New York, New York - Vice
President of Schroder Fund Advisors Inc.
INVESTMENT ADVISORY SERVICES
GENERAL
The advisory fee for each Fund is based on the average daily net assets of the
Fund at the annual rate disclosed in the Fund's prospectus. To the extent that a
Fund invests in one or more Portfolios, the advisory fee paid by the Fund will
be with respect to the Portfolio for advisory services rendered at the portfolio
level.
All investment advisory fees are accrued daily and paid monthly. Each Adviser,
in its sole discretion, may waive or continue to waive all or any portion of its
investment advisory fees.
In addition to receiving its advisory fee from the Funds, each Adviser or its
affiliates may act and be compensated as investment manager for its clients with
respect to assets which are invested in a Fund. In some instances an Adviser or
its affiliates may elect to credit against any investment management, custodial
or other fee received from, or rebate to, a client who is also a shareholder in
a Fund an amount equal to all or a portion of the fees received by the Adviser
or any of its affiliates from a Fund with respect to the client's assets
invested in the Fund.
NORWEST INVESTMENT MANAGEMENT
Subject to the general supervision of the Core Board, Norwest makes investment
decisions for the Portfolios (except for Global Growth Portfolio) and
continuously reviews, supervises and administers each Portfolio's investment
program or
<PAGE>
oversees the investment decisions of the subadvisers, as applicable. Norwest,
which is located at Norwest Center, Sixth Street and Marquette, Minneapolis,
Minnesota 55479, is an indirect subsidiary of Norwest Corporation, a multi-bank
holding company that was incorporated under the laws of Delaware in 1929. As of
[June 30], 1997, Norwest Corporation had assets of $[83.6] billion, which made
it the [11th] largest bank holding company in the United States. As of that
date, Norwest Corporation and its affiliates managed assets with a value of
approximately $[52.9] billion.
As part of its regular banking operations, Norwest Bank Minnesota, N.A. and
other banking affiliates of Norwest may make loans to companies. Thus, it may be
possible, from time to time, for a Portfolio to hold or acquire the securities
of issuers which are also lending clients of Norwest's banking affiliates. A
lending relationship will not be a factor in Norwest's selection of portfolio
securities.
Norwest furnishes at its expense all services, facilities and personnel
necessary in connection with managing each Portfolio's investments and effecting
portfolio transactions for each Portfolio (except Schroder Global Growth
Portfolio). Under an Investment Advisory Agreement between Norwest and Core
Trust on behalf of the Portfolios (other than Schroder Global Growth Portfolio),
Norwest may delegate its responsibilities to any investment subadviser approved
by the Board and, as applicable, interestholders, with respect to all or a
portion of the assets of the Portfolio. The Investment Advisory Agreement will
continue in effect only if such continuance is specifically approved at least
annually by the Core Trust Board or by vote of the shareholders, and in either
case, by a majority of the trustees who are not interested persons of any party
to the Investment Advisory Agreement, at a meeting called for the purpose of
voting on the Investment Advisory Agreement.
Each Investment Advisory Agreement is terminable without penalty with respect to
the Portfolio on 60 days' written notice: (1) by the Board or by a vote of a
majority of the outstanding voting securities of the Fund to the Adviser or (2)
by the Adviser on 60 days' written notice to the Core Trust. Each Investment
Advisory Agreement shall terminate upon assignment. The Investment Advisory
Agreements also provide that, with respect to the Portfolios (other than
Schroder Global Growth Portfolio), neither Norwest nor its personnel shall be
liable for any mistake of judgment or in any event whatsoever, except for lack
of good faith, provided that nothing in the Investment Advisory Agreements shall
be deemed to protect, or purport to protect, the Adviser against liability by
reason of willful misfeasance, bad faith or gross negligence in the performance
of Norwest's duties or by reason of reckless disregard of its obligations and
duties under the Investment Advisory Agreements. The Investment Advisory
Agreements provide that Norwest may render services to others.
Norwest also currently acts as investment adviser to each Performa Fund. The
investment advisory agreements between Norwest and the Trust on behalf of the
Funds are identical to the Investment Advisory Agreements between Core Trust and
Norwest on behalf of the Portfolios (other than Schroder Global Growth
Portfolio), except for the fees payable thereunder (no fee is payable to the
extent that a Fund is invested in an investment company) and certain immaterial
matters.
SCHRODER CAPITAL MANAGEMENT INTERNATIONAL, INC.
Pursuant to a separate Advisory Agreement between Schroder Core and Schroder,
Schroder acts as investment adviser to Schroder Global Growth Portfolio and is
required to furnish at its expenses all services, facilities and personnel
necessary in connection with managing the Portfolio's investments and effecting
portfolio transactions for the Portfolio. Schroder, whose principal business
address is 787 7th Avenue, 34th Floor, New York, New York 10019, is a registered
investment adviser. Subject to the general supervision of the Schroder Core
Board, Schroder makes investment decisions for the Schroder Global Growth
Portfolio and continuously reviews, supervises and administers the Portfolio's
investment program. Schroder is a wholly owned U.S. subsidiary of Schroders
Incorporated (doing business in New York State as Schroders Holdings), the
wholly owned U.S. holding company subsidiary of Schroders plc. Schroders plc is
the holding company parent of a large world-wide group of banks and financial
services companies (referred to as the "Schroder Group") with associated
companies and branch and representative offices in eighteen countries. The
Schroder Group specializes in providing investment management services. As of
[June 30], 1997, Schroder Group had over $[175] billion in assets under
management.
<PAGE>
The Advisory Agreement between Schroder Core and Schroder will continue in
effect only if such continuance is specifically approved at least annually: (1)
by the Schroder Core Board or by vote of a majority of the outstanding voting
interests of the Portfolio, and , in either case, (2) by a majority of Schroder
Core's trustees who are not parties to the Advisory Agreement or interested
persons of any such party (other than as trustees of the Schroder Core);
provided further, however, that if the Advisory Agreement or the continuation of
the Agreement is not approved as to the Portfolio, the adviser may continue to
render to the Portfolio the services described herein in the manner and to the
extent permitted by the 1940 Act and the rules and regulations thereunder.
On behalf of Performa Global Growth Fund, Norwest and the Trust have entered
into an Investment Subadvisory Agreement with Schroder. The Investment
Subadvisory Agreement would become operative and Schroder would directly manage
the Fund's assets if the Board determined it was no longer in the best interest
of the Fund to invest in another registered investment company. In that event,
pursuant to the Investment Subadvisory Agreement, Schroder would make investment
decisions directly for the Fund and continuously review, supervise and
administer the Fund's investment program with respect to that portion, if any,
of the Fund's portfolio that Norwest had so delegated. Schroder would be
required to furnish at its own expense all services, facilities and personnel
necessary in connection with managing of the Fund's investments and effecting
portfolio transactions for the Funds (to the extent of Norwest's delegation).
The Investment Subadvisory Agreement will continue in effect only if such
continuance is specifically approved at least annually: (1) by the Board or by
vote of a majority of the outstanding voting securities of the Fund, and, in
either case, (2) by a majority of the Trust's trustees who are not parties to
the Investment Subadvisory Agreement or interested persons of any such party
(other than as trustees of the Trust), at a meeting called for the purpose of
voting on the Investment Subadvisory Agreements. If the Investment Subadvisory
Agreement is not approved as to the Fund, the Subadviser may continue to render
to the Fund the services described herein in the manner and to the extent
permitted by the 1940 Act and the rules and regulations thereunder.
The Investment Subadvisory Agreement is terminable without penalty with respect
to the Fund on 60 days' written notice when authorized either by majority vote
of the Fund's shareholders or by the Board, or by Schroder on 60 days' written
notice to the Trust, and will automatically terminate in the event of its
assignment. The Investment Subadvisory Agreement also provides that, with
respect to the Fund, neither Schroder nor its personnel shall be liable for any
mistake of judgment or in any event whatsoever, except for lack of good faith,
provided that nothing shall be deemed to protect Schroder against liability by
reason of willful misfeasance, bad faith or gross negligence in the performance
of Schroder's duties or by reason of reckless disregard of its obligations and
duties under the Investment Subadvisory Agreement. The Investment Subadvisory
Agreement provides that Schroder may render services to others.
No payments currently are made under the Fund's Investment Subadvisory Agreement
with Schroder because the Fund currently invests all its investable assets in
the Portfolio.
SUB-ADVISERS
Norwest pays a fee to each of the Subadvisers. These fees do not increase the
fees paid by shareholders of the Funds. The amount of the fees paid by Norwest
to each Subadviser may vary from time to time as a result of periodic
negotiations with the Subadviser regarding such matters as the nature and extent
of the services (other than investment selection and order placement activities)
provided by the Subadviser to the Portfolio, the increased cost and complexity
of providing services to the Portfolio, the investment record of the Subadviser
in managing the Portfolio and the nature and magnitude of the expenses incurred
by the Subadviser in managing the Portfolio's assets and by the Adviser in
overseeing and administering management of the Portfolio. However, the
contractual fee payable to each Portfolio by Norwest for investment advisory
services will not vary as a result of those negotiations.
Norwest performs internal due diligence on each Subadviser and monitors each
Subadviser's performance using its proprietary investment adviser selection and
monitoring process. Norwest will be responsible for communicating performance
targets and evaluations to Subadvisers, supervising each Subadviser's compliance
with the Portfolio's fundamental investment objectives and policies, authorizing
Subadvisers to engage in certain investment techniques
<PAGE>
for the Portfolio, and recommending to the Board of Trustees whether
sub-advisory agreements should be renewed, modified or terminated. Norwest also
may from time to time recommend that the Core Trust Board replace one or more
Subadvisers or appoint additional Subadvisers, depending on the Norwest's
assessment of what combination of Subadvisers it believes will optimize each
Portfolio's chances of achieving its investment objectives.
GALLIARD
To assist Norwest in carrying out its obligations under the Investment Advisory
Agreement with Strategic Value Bond Portfolio, Norwest has entered into an
Investment Subadvisory Agreement with Galliard, located at 800 LaSalle Avenue,
Suite 2060, Minneapolis, Minnesota 55479. Galliard specializes in fixed income
management. The firm manages assets on the premise that outstanding performance
is achieved through fundamental security analysis and strategic portfolio
diversification. As of [AUGUST 31], 1997, Galliard had over $[3.1] billion in
assets under management. Galliard is the subadviser of Strategic Value Bond
Portfolio. Galliard is registered with the SEC as an investment adviser and is
an investment advisory subsidiary of Norwest Bank.
Pursuant to the Investment Subadvisory Agreement, Galliard makes investment
decisions for the Portfolio and continuously reviews, supervises and administers
the Portfolio's investment program with respect to that portion, if any, of the
Portfolio's portfolio that Norwest believes should be invested using Galliard as
a subadviser. Currently, Galliard manages the entire portfolio of the Portfolio
and has done so since the Portfolio's inception. Galliard is required to furnish
at its own expense all services, facilities and personnel necessary in
connection with managing of the Portfolio's investments and effecting portfolio
transactions for the Portfolio (to the extent of Norwest's delegation). Norwest
supervises the performance of Galliard including its adherence to the
Portfolio's investment objectives and policies and pays Galliard a fee for its
investment management services. As of October 1, 1998, for its services under
the Sub-Investment Advisory Agreement, Norwest pays Galliard a fee based on each
Fund's average daily net assets at an annual rate of 0.50%.
The Investment Subadvisory Agreement will continue in effect only if such
continuance is specifically approved at least annually: (1) by the Core Board or
by vote of a majority of the outstanding voting securities of the Portfolio,
and, in either case; (2) by a majority of the Core Trust's trustees who are not
parties to the Investment Subadvisory Agreement or interested persons of any
such party (other than as trustees of the Core Trust), at a meeting called for
the purpose of voting on the Investment Subadvisory Agreements; provided
further, however, that if the Investment Subadvisory Agreement or the
continuation of the Agreement is not approved, the Subadviser may continue to
render to the Portfolio the services described in the Investment Subadvisory
Agreement in the manner and to the extent permitted by the 1940 Act and the
rules and regulations thereunder.
The Investment Subadvisory Agreement is terminable without penalty with respect
to the Portfolio on 60 days' written notice when authorized either by majority
vote of the Fund's shareholders or by the Core Board, or by Galliard on 60 days
written notice to Core Trust, and will automatically terminate in the event of
its assignment. The Investment Subadvisory Agreement also provides that, with
respect to each Portfolio, neither Galliard nor its personnel shall be liable
for any mistake of judgment or in any event whatsoever, except for lack of good
faith, provided that nothing shall be deemed to protect Galliard against
liability by reason of willful misfeasance, bad faith or gross negligence in the
performance of Galliard's duties or by reason of reckless disregard of its
obligations and duties under the Investment Subadvisory Agreement. The
Investment Subadvisory Agreements provides that Galliard may render services to
others.
Galliard also currently serves as investment subadviser to Performa Strategic
Value Bond Fund pursuant to an investment subadvisory agreement between Galliard
and Norwest. The investment subadvisory agreement with respect to the Fund is
identical to the Investment Subadvisory Agreement, except for the fees payable
thereunder (no fee is payable under the investment subadvisory agreement to the
extent that the Fund is invested in an investment company) and certain
immaterial matters.
SMITH ASSET MANAGEMENT GROUP, L.P.
<PAGE>
To assist Norwest in carrying out its obligations under the Investment Advisory
Agreement with Disciplined Growth Portfolio and Small Cap Value Portfolio,
Norwest has entered into an Investment Subadvisory Agreement with Smith, located
at 300 Crescent Court, Suite 750, Dallas, Texas. Smith is registered with the
SEC as an investment adviser and is an investment advisory affiliate of Norwest
Bank. Smith group provides investment management services to company retirement
plans, foundations, endowments, trust companies, and high net worth individuals.
As of [AUGUST 31], 1997, the Smith Group managed over $[230] million in assets.
Pursuant to the Sub-Investment Advisory Agreement, Smith makes investment
decisions for each of the Portfolios and continuously reviews, supervises and
administers each Portfolios' investment program with respect to that portion, if
any, of the Portfolio's portfolio that Norwest believes should be invested using
Smith as a subadviser. Currently, Smith manages the entire investment portfolio
of each Portfolio and has done so since the Portfolios' inception. Norwest
supervises the performance of Smith including its adherence to the Portfolio's
investment objectives and policies and pays Smith a fee for its investment
management services. As of October 1, 1998, for its services under the
Investment Subadvisory Agreement, Norwest pays Smith a fee based on Disciplined
Growth Portfolio's and Small Cap Value Portfolio's average daily net assets at
an annual rate of 0.35% and 0.45%, respectively.
Under its Investment Subadvisory Agreement, Smith makes investment decisions for
each Portfolio and continuously reviews, supervises and administers each
Portfolios' investment program with respect to that portion, if any, of the
Portfolio's portfolio for which Norwest has delegated management responsibility.
Smith is required to furnish at its own expense all services, facilities and
personnel necessary in connection with managing of each Portfolio's investments
and effecting portfolio transactions for each Portfolio (to the extent of
Norwest's delegation).
During the past 17 years, Smith has developed a proprietary model investment
style which utilizes the concept of earnings surprise to aid in successful stock
selection. This proprietary model, known as the EARNINGS SURPRISE PREDICTOR
("ESP") model, is based on the idea that companies reporting positive earnings
surprises have consistently outperformed those companies reporting negative
earnings surprises. The ESP model works on the following three-discipline
approach: (1) Buy Discipline - buy based on an objective strategy driven by
earnings surprise; (2) Portfolio Discipline - eliminate factors that may dilute
the positive impact of earnings surprise on return; and (3) Sell Discipline -
sell using objective criteria to eliminate factors that cloud judgment,
including emotion.
The Investment Subadvisory Agreement will continue in effect with respect to a
Portfolio only if such continuance is specifically approved at least annually:
(1) by the Core Trust Board or by vote of a majority of the outstanding voting
securities of the Portfolios, and, in either case; (2) by a majority of the Core
Trust's trustees who are not parties to the Investment Subadvisory Agreement or
interested persons of any such party (other than as trustees of the Core Trust),
at a meeting called for the purpose of voting on the Investment Subadvisory
Agreements; provided further, however, that if the Investment Subadvisory
Agreement or the continuation of the Agreement is not approved, the Subadviser
may continue to render to each Portfolio the services described in the
Investment Subadvisory Agreement in the manner and to the extent permitted by
the Act and the rules and regulations thereunder.
The Investment Subadvisory Agreement is terminable without penalty with respect
to a Portfolio on 60 days' written notice when authorized either by majority
vote of the Portfolio's shareholders or by the Core Trust Board, or by Smith on
60 days written notice to the Core Trust, and will automatically terminate in
the event of its assignment. The Investment Subadvisory Agreement also provides
that, with respect to each Portfolio, neither Smith nor its personnel shall be
liable for any mistake of judgment or in any event whatsoever, except for lack
of good faith, provided that nothing shall be deemed to protect Smith against
liability by reason of willful misfeasance, bad faith or gross negligence in the
performance of Smith's duties or by reason of reckless disregard of its
obligations and duties under the Investment Subadvisory Agreement. The
Investment Subadvisory Agreements provides that Smith may render services to
others. Smith also currently serves as investment subadviser to the Funds
pursuant to an investment advisory agreement between Smith and Norwest. The
investment subadvisory agreement with respect to the Funds is identical to the
Investment Subadvisory Agreement, except for the fees payable thereunder (no fee
is
<PAGE>
payable under the investment subadvisory agreement with respect to a Fund to the
extent that the Fund is invested in an investment company) and certain
immaterial matters.
DORMANT ADVISORY ARRANGEMENTS
Each Fund may withdraw its investments from its corresponding Portfolio at any
time if the Board determines that it is in the best interests of the Fund to do
so. Accordingly, each Fund has retained Norwest as its investment adviser and
the corresponding Portfolio's subadviser as a subadviser. Similarly, in the
event that Performa Global Growth Fund withdraws its investment from its
corresponding Portfolio, the Fund has retained Schroder as a subadviser. Under
these "dormant" investment advisory arrangements, no Fund pays any advisory fees
as long as the Fund remains completely invested in its corresponding Portfolio
or any other investment company. In the event that a Fund were to withdraw its
assets from its corresponding Portfolio (other than Schroder Global Growth
Portfolio), Norwest would receive an advisory fee from the Fund at the same rate
as the fee paid by the Portfolio. In the event that Performa Global Growth Fund
were to withdraw its assets from Global Growth Portfolio, Norwest would receive
an advisory fee from the Fund at an annual rate of 0.90% of the Fund's average
daily net assets. Pursuant to the Funds' dormant subadvisory agreements, Norwest
(and not the Funds) would pay Schroder, Smith or Galliard, as applicable, a fee
for its subadvisory services.
MANAGEMENT AND ADMINISTRATIVE SERVICES
General. As manager, Forum supervises the overall management of the Trust
(including the Trust's receipt of services for which the Trust is obligated to
pay) other than investment advisory services. In this capacity, Forum provides
the Trust with general office facilities, provides persons satisfactory to the
Board to serve as officers of the Trust and oversees the performance of
administrative and professional services rendered to the Funds by others.
FAS is responsible for performing certain administrative services necessary for
the Trust's operations with respect to each Fund including preparing and
printing updates of the Trust's registration statement and prospectuses,
preparing proxy and information statements and monitoring the sale of shares and
ensuring that such shares are properly and duly registered with the SEC and
applicable state securities administrators.
As of [OCTOBER 1], 1997, Forum and FAS provided management and administrative
services to registered investment companies and collective investment funds with
assets of approximately $[25.5] billion. For their services to the Funds, FAS
and Forum each receives a fee at an annual rate of 0.025% of the Fund's average
daily net assets.
FAS also serves as administrator of each Portfolio, except Schroder Global
Growth Portfolio, for which it serves as subadministrator. FAS provides services
to the Portfolios (other than Schroder Global Growth Portfolio) that are similar
to those provided to the Funds by Forum and FAS. Schroder Advisors serves as
administrator and Forum serves as subadministrator of Schroder Global Growth
Portfolio. Schroder Advisors and Forum provide certain management and
administrative services necessary for the Portfolio's operations, other than the
administrative services provided to the Portfolio by Schroder.
For its services with respect to each Portfolio (other than Schroder Global
Growth Portfolio) FAS receives a fee at an annual rate of 0.05% of the
Portfolio's average daily net assets. For their services to Schroder Global
Growth Portfolio, Schroder Advisors receives a fee at an annual rate of 0.15%
and Forum receives a fee at an annual rate of 0.075% of the Portfolio's average
daily net assets.
Forum is a registered broker-dealer and member of the National Association of
Securities Dealers, Inc. Forum, FAS and Forum Accounting Services, LLC are
members of the Forum Financial Group of companies, Two Portland Square,
Portland, Maine 04101, which together provide a full range of services to the
investment company and financial services industry. As of [OCTOBER 1, 1997],
they were controlled by John Y. Keffer, President and Chairman of the Trust.
<PAGE>
MANAGEMENT SERVICES. Forum manages all aspects of the Trust's operations with
respect to each Fund except those which are the responsibility of Forum,
Norwest, any other Adviser or Subadviser to a Fund, or Norwest in its capacity
as administrator pursuant to an investment administration or similar agreement.
With respect to each Fund, Forum has entered into a Management Agreement that
will continue in effect only if such continuance is specifically approved at
least annually by the Board or by the shareholders and, in either case, by a
majority of the Trustees who are not interested persons of any party to the
Management Agreement.
On behalf of the Trust and with respect to each Fund, Forum: (1) oversees (a)
the preparation and maintenance by the Advisers and the Trust's administrator,
custodian, transfer agent, dividend disbursing agent and fund accountant (or if
appropriate, prepares and maintains) in such form, for such periods and in such
locations as may be required by applicable law, of all documents and records
relating to the operation of the Trust required to be prepared or maintained by
the Trust or its agents pursuant to applicable law; (b) the reconciliation of
account information and balances among the Advisers and the Trust's custodian,
transfer agent, dividend disbursing agent and fund accountant; (c) the
transmission of purchase and redemption orders for Shares; (d) the notification
of the Advisers of available funds for investment; and (e) the performance of
fund accounting, including the calculation of the net asset value per Share; (2)
oversees the Trust's receipt of the services of persons competent to perform
such supervisory, administrative and clerical functions as are necessary to
provide effective operation of the Trust; (3) oversees the performance of
administrative and professional services rendered to the Trust by others,
including its administrator, custodian, transfer agent, dividend disbursing
agent and fund accountant, as well as accounting, auditing, legal and other
services performed for the Trust; (4) provides the Trust with adequate general
office space and facilities and provides, at the Trust's request and expense,
persons suitable to the Board to serve as officers of the Trust; (5) oversees
the preparation and the printing of the periodic updating of the Trust's
registration statement, Prospectuses and SAIs, the Trust's tax returns, and
reports to its shareholders, the SEC and state and other securities
administrators; (6) oversees the preparation of proxy and information statements
and any other communications to shareholders; (7) with the cooperation of the
Trust's counsel, Advisers and other relevant parties, oversees the preparation
and dissemination of materials for meetings of the Board; (8) oversees the
preparation, filing and maintenance of the Trust's governing documents,
including the Trust Instrument, Bylaws and minutes of meetings of Trustees,
Board committees and shareholders; (9) oversees registration and sale of Fund
shares, to ensure that such shares are properly and duly registered with the SEC
and applicable state and other securities commissions; (10) oversees the
calculation of performance data for dissemination to information services
covering the investment company industry, sales literature of the Trust and
other appropriate purposes; (11) oversees the determination of the amount of and
supervises the declaration of dividends and other distributions to shareholders
as necessary to, among other things, maintain the qualification of each Fund as
a regulated investment company under the Internal Revenue Code of 1986, as
amended, and oversees the preparation and distribution to appropriate parties of
notices announcing the declaration of dividends and other distributions to
shareholders; (12) reviews and negotiates on behalf of the Trust normal course
of business contracts and agreements; (13) maintains and reviews periodically
the Trust's fidelity bond and errors and omission insurance coverage; and (14)
advises the Trust and the Board on matters concerning the Trust and its affairs.
The Management Agreement terminates automatically if assigned and may be
terminated without penalty with respect to any Fund by vote of that Fund's
shareholders or by either party on not more than 60 days' nor less than 30 days'
written notice. The Management Agreement also provides that neither Forum nor
its personnel shall be liable for any error of judgment or mistake of law or for
any act or omission in the administration or management of the Trust, except for
willful misfeasance, bad faith or gross negligence in the performance of Forum's
or their duties or by reason of reckless disregard of their obligations and
duties under the Management Agreement.
ADMINISTRATIVE SERVICES. FAS manages all aspects of the Trust's operations with
respect to each Fund except those which are the responsibility of Forum,
Norwest, or any other Adviser or Subadviser to a Fund, or Norwest in its
capacity as administrator pursuant to an investment administration or similar
agreement. With respect to each Fund, FAS has entered into an Administrative
Agreement that will continue in effect only if such continuance is specifically
approved at least annually by the Board or by the shareholders and, in either
case, by a majority of the Trustees who are not interested persons of any party
to the Management Agreement.
<PAGE>
On behalf of the Trust and with respect to each Fund, FAS: (1) provides the
Trust with, or arranges for the provision of, the services of persons competent
to perform such supervisory, administrative and clerical functions as are
necessary to provide effective operation of the Trust; (2) assists in the
preparation and the printing and the periodic updating of the Trust's
registration statement, Prospectuses and SAIs, the Trust's tax returns, and
reports to its shareholders, the SEC and state and other securities
administrators; (3) assists in the preparation of proxy and information
statements and any other communications to shareholders; (4) assists the
Advisers in monitoring Fund holdings for compliance with Prospectus and SAI
investment restrictions and assists in preparation of periodic compliance
reports; (5) with the cooperation of the Trust's counsel, the Advisers, the
officers of the Trust and other relevant parties, is responsible for the
preparation and dissemination of materials for meetings of the Board; (6) is
responsible for preparing, filing and maintaining the Trust's governing
documents, including the Trust Instrument, Bylaws and minutes of meetings of
Trustees, Board committees and shareholders; (7) is responsible for maintaining
the Trust's existence and good standing under state law; (8) monitors sales of
shares and ensures that such shares are properly and duly registered with the
SEC and applicable state and other securities commissions; (9) is responsible
for the calculation of performance data for dissemination to information
services covering the investment company industry, sales literature of the Trust
and other appropriate purposes; and (10) is responsible for the determination of
the amount of and supervises the declaration of dividends and other
distributions to shareholders as necessary to, among other things, maintain the
qualification of each Fund as a regulated investment company under the Code, as
amended, and prepares and distributes to appropriate parties notices announcing
the declaration of dividends and other distributions to shareholders.
The Administrative Agreement terminates automatically if assigned and may be
terminated without penalty with respect to any Fund by vote of that Fund's
shareholders or by either party on not more than 60 days' nor less than 30 days'
written notice. The Administrative Agreement also provides that neither FAS nor
its personnel shall be liable for any error of judgment or mistake of law or for
any act or omission in the administration or management of the Trust, except for
willful misfeasance, bad faith or gross negligence in the performance of FAS's
or their duties or by reason of reckless disregard of their obligations and
duties under the Administrative Agreement.
Pursuant to their agreements with the Trust, Forum and FAS may subcontract any
or all of their duties to one or more qualified subadministrators who agree to
comply with the terms of Forum's Management Agreement or FAS's Administration
Agreement, as applicable. Forum and FAS may compensate those agents for their
services; however, no such compensation may increase the aggregate amount of
payments by the Trust to Forum or FAS pursuant to their Management and
Administration Agreements with the Trust.
PORTFOLIOS OF CORE TRUST
Forum manages all aspects of Core Trust's operations with respect to the
Portfolios except those which are the responsibility of Norwest or Schroder.
With respect to each Portfolio, Forum has entered into a management agreement
(the "Core Trust Management Agreement") that will continue in effect only if
such continuance is specifically approved at least annually by the Core Trust
Board or by the interestholders and, in either case, by a majority of the
trustees who are not interested persons of any party to the Core Trust
Management Agreement. Under the Core Trust Management Agreement, Forum performs
similar services for each Portfolio as it and FAS perform under the Management
and Administration Agreements, to the extent the services are applicable to the
Portfolios and their structure.
NORWEST ADMINISTRATIVE SERVICES
Under an Administrative Servicing Agreement between the Trust and Norwest with
respect to Performa Global Growth Fund, Norwest performs ministerial,
administrative and oversight functions for the Funds and undertakes to reimburse
certain excess expenses of the Funds. Among other things, Norwest gathers
performance and other data from Schroder as the adviser of certain Portfolios
and from other sources, formats the data and prepares reports to the Funds'
shareholders and the Trustees. Norwest also ensures that Schroder is aware of
pending net purchases or redemptions of each Fund's shares and other matters
that may affect Schroder's performance of its duties. Lastly, Norwest has agreed
to reimburse each Fund for any amounts by which its operating expenses
(exclusive of interest, taxes and brokerage fees, organization expenses and, if
applicable, distribution expenses, all to the extent permitted
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by applicable state law or regulation) exceed the limits prescribed by any state
in which the Funds' shares are qualified for sale. No fees will be paid to
Norwest under the Administrative Servicing Agreement unless the assets of each
Fund that is subject to the agreement are invested in a portfolio of another
registered investment company. The Administrative Servicing Agreement will
continue in effect only if such continuance is specifically approved at least
annually by the Board or by the shareholders and, in either case, by a majority
of the Trustees who are not parties to the Management Agreement or interested
persons of any such party.
The Administrative Servicing Agreement provides that neither Norwest nor its
personnel shall be liable for any error of judgment or mistake of law or for any
act or omission in the performance of its or their duties to the Fund, except
for willful misfeasance, bad faith or gross negligence in the performance of
Forum's or their duties or by reason of reckless disregard of its or their
obligations and duties under the agreement. The Agreement provides for a fee of
0.25% of the Fund's average daily net assets.
DISTRIBUTION
Forum also acts as distributor of the shares of the Fund. Forum acts as the
agent of the Trust in connection with the offering of shares of the Funds on a
"best efforts" basis pursuant to a Distribution Services Agreement.
Under the Distribution Services Agreement, the Trust has agreed to indemnify,
defend and hold Forum, and any person who controls Forum within the meaning of
Section 15 of the 1933 Act, free and harmless from and against any and all
claims, demands, liabilities and expenses (including the cost of investigating
or defending such claims, demands or liabilities and any counsel fees incurred
in connection therewith) which Forum or any such controlling person may incur,
under the 1933 Act, or under common law or otherwise, arising out of or based
upon any alleged untrue statement of a material fact contained in the Trust's
Registration Statement or a Fund's Prospectus or Statement of Additional
Information in effect from time to time under the 1933 Act or arising out of or
based upon any alleged omission to state a material fact required to be stated
in any one thereof or necessary to make the statements in any one thereof not
misleading. Forum is not, however, protected against any liability to the Trust
or its shareholders to which Forum would otherwise be subject by reason of
willful misfeasance, bad faith or gross negligence in the performance of its
duties, or by reason of Forum's reckless disregard of its obligations and duties
under the Distribution Services Agreement.
With respect to each Fund, the Distribution Services Agreement will continue in
effect only if such continuance is specifically approved at least annually by
the Board or by the shareholders and, in either case, by a majority of the
Trustees who are not parties to the Distribution Services Agreement or
interested persons of any such party.
The Distribution Services Agreement terminates automatically if assigned. With
respect to each Fund, the Distribution Services Agreement may be terminated at
any time without the payment of any penalty by the Board or by a vote of the
Fund's shareholders on 60 days' written notice to Forum; or by FAS on 60 days'
written notice to the Trust.
Forum also acts as placement agent for the Portfolios.
TRANSFER AGENT
Norwest Bank serves as transfer agent and dividend disbursing agent for the
Funds (in this capacity, the "Transfer Agent"). The Transfer Agent maintains an
account for each shareholder of the Funds, performs other transfer agency
functions and acts as dividend disbursing agent for the Funds. The Transfer
Agent is permitted to subcontract any or all of its functions with to qualified
agents. The Transfer Agent is permitted to compensate those agents for their
services; however, that compensation may not increase the aggregate amount of
payments by the Trust to the Transfer Agent. For its services, the Transfer
Agent receives a fee with respect to each Fund at an annual rate of 0.25% of
each Fund's average daily net assets.
Norwest Bank, Sixth Street and Marquette, Minneapolis, Minnesota 55479 acts as
Transfer Agent of the Trust pursuant to a Transfer Agency Agreement. The
Transfer Agency Agreement will continue in effect only if such
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continuance is specifically approved at least annually by the Board or by a vote
of the shareholders of the Trust and in either case by a majority of the
Trustees who are not parties to the Transfer Agency Agreement or interested
persons of any such party, at a meeting called for the purpose of voting on the
Transfer Agency Agreement.
The responsibilities of the Transfer Agent include: (1) answering customer
inquiries regarding account status and history, the manner in which purchases
and redemptions of shares of the Fund may be effected and certain other matters
pertaining to the Fund; (2) assisting shareholders in initiating and changing
account designations and addresses; (3) providing necessary personnel and
facilities to establish and maintain shareholder accounts and records; (4)
assisting in processing purchase and redemption transactions and receiving wired
funds; (5) transmitting and receiving funds in connection with customer orders
to purchase or redeem shares; (6) verifying shareholder signatures in connection
with changes in the registration of shareholder accounts; (7) furnishing
periodic statements and confirmations of purchases and redemptions; (8)
transmitting proxy statements, annual reports, prospectuses and other
communications from the Trust to its shareholders; (9) receiving, tabulating and
transmitting to the Trust proxies executed by shareholders with respect to
meetings of shareholders of the Trust; and (10) providing such other related
services as the Trust or a shareholder may request.
For its services, the Transfer Agent receives a fee computed daily and paid
monthly from the Trust, with respect to each Fund, at an annual rate of 0.25% of
the Fund's average daily net assets attributable to each class of the Fund.
CUSTODIAN
Pursuant to a Custodian Agreement, Norwest Bank, Sixth Street and Marquette,
Minneapolis, Minnesota 55479, also serves as each Fund's and each Portfolio's
(other than Global Growth Portfolio's) custodian and may appoint subcustodians
for the foreign securities and other assets held in foreign countries. For its
custodial service, Norwest Bank receives a fee with respect to each Portfolio at
an annual rate of 0.02% of the first $100 million of the Portfolio's average
daily net assets, 0.015% of the next $100 million of the Portfolio's average
daily net assets and 0.01% of the Portfolio's remaining average daily net
assets. The fee is computed and paid monthly, based on the average daily net
assets of the Fund, the number of portfolio transactions of the Fund and the
number of securities in the Fund's portfolio. No fee is directly payable by a
Fund to the extent the Fund is invested in a Portfolio. The Chase Manhattan Bank
serves as custodian of Schroder Global Growth Portfolio and is paid a fee for
its services.
The custodian's responsibilities include safeguarding and controlling the
Trust's cash and securities, determining income and collecting interest on Fund
investments.
Pursuant to rules adopted under the 1940 Act, a Fund may maintain its foreign
securities and cash in the custody of certain eligible foreign banks and
securities depositories. Selection of these foreign custodial institutions is
made by the Board upon consideration of a number of factors, including (but not
limited to) the reliability and financial stability of the institution; the
ability of the institution to perform capably custodial services for the Fund;
the reputation of the institution in its national market; the political and
economic stability of the country in which the institution is located; and
possible risks of potential nationalization or expropriation of Fund assets. The
Custodian employs qualified foreign subcustodians to provide custody of the
Funds foreign assets in accordance with applicable regulations.
No Fund will pay custodian fees to the extent the Fund invests in shares of
another registered investment company. Each Fund so invested incurs, however,
its proportionate share of the custodial fees of the Portfolio in which it
invests.
PORTFOLIO ACCOUNTING
Forum Accounting, an affiliate of Forum, performs portfolio accounting services
for each Fund pursuant to a Fund Accounting Agreement with the Trust. The Fund
Accounting Agreement will continue in effect only if such continuance is
specifically approved at least annually by the Board or by a vote of the
shareholders of the Trust and in either case by a majority of the Trustees who
are not parties to the Fund Accounting Agreement or interested persons of any
such party, at a meeting called for the purpose of voting on the Fund Accounting
Agreement.
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Under the Fund Accounting Agreement, Forum Accounting prepares and maintains
books and records of each Fund on behalf of the Trust that are required to be
maintained under the 1940 Act, calculates the net asset value per share of each
Fund (and class thereof) and dividends and capital gain distributions and
prepares periodic reports to shareholders and the SEC. For its services, Forum
Accounting receives from the Trust with respect to each Fund a fee of $1,000 per
month plus for each additional class of the Fund above one $1,000 per month. In
addition, Forum Accounting is paid additional surcharges for each of the
following: (1) Funds with asset levels exceeding $100 million - $500/month,
Funds with asset levels exceeding $250 million - $1000/month, Funds with asset
levels exceeding $500 million - $1,500/month, Funds with asset levels exceeding
$1,000 million - $2,000/month; (2) Funds requiring international custody -
$1,000/month; (3) Funds with more than 30 international positions -
$1,000/month; (4) Tax free money market Funds - $1,000/month; (5) Funds with
more than 25% of net assets invested in asset backed securities - $1,000/month,
Funds with more than 50% of net assets invested in asset backed securities -
$2,000/month; (6) Funds with more than 100 security positions - $1,000/month;
and (7) Funds with a monthly portfolio turnover rate of 10% or greater -
$1,000/month.
Forum Accounting receives from the Trust with respect to each Gateway Fund a
standard gateway fee of $1,000 per month plus for each additional class of the
Fund above one - $1,000 per month. Forum Accounting also receives a fee of
$2,000 per month for each Gateway Fund operating pursuant to Section 12(d)(1)(E)
of the 1940 Act that invests in more than one security. In addition to the
standard gateway fees, Forum Accounting is entitled to receive from the Trust
with respect to each Gateway Fund operating pursuant to Section 12(d)(1)(H) of
the 1940 Act additional surcharges as described above if the Fund invests in
securities other than investment companies (calculated as if the securities were
the Fund's only assets)
Surcharges are determined based upon the total assets, security positions or
other factors as of the end of the prior month and on the portfolio turnover
rate for the prior month. The rates set forth above shall remain fixed through
December 31, 1997. On January 1, 1998, and on each successive January 1, the
rates may be adjusted automatically by Forum without action of the Trust to
reflect changes in the Consumer Price Index for the preceding calendar year, as
published by the U.S. Department of Labor, Bureau of Labor Statistics. Forum
shall notify the Trust each year of the new rates, if applicable.
Forum Accounting is required to use its best judgment and efforts in rendering
fund accounting services and is not liable to the Trust for any action or
inaction in the absence of bad faith, willful misconduct or gross negligence.
Forum Accounting is not responsible or liable for any failure or delay in
performance of its fund accounting obligations arising out of or caused,
directly or indirectly, by circumstances beyond its reasonable control and the
Trust has agreed to indemnify and hold harmless Forum Accounting, its employees,
agents, officers and directors against and from any and all claims, demands,
actions, suits, judgments, liabilities, losses, damages, costs, charges, counsel
fees and other expenses of every nature and character arising out of or in any
way related to Forum Accounting's actions taken or failures to act with respect
to a Fund or based, if applicable, upon information, instructions or requests
with respect to a Fund given or made to Forum Accounting by an officer of the
Trust duly authorized. This indemnification does not apply to Forum Accounting's
actions taken or failures to act in cases of Forum Accounting's own bad faith,
willful misconduct or gross negligence.
Forum Accounting performs similar services for the Portfolios and, in addition,
acts as the Portfolios' transfer agent.
EXPENSES
Subject to the obligations of Norwest to reimburse the Trust for its excess
expenses as described above, the Trust has, under its Investment Advisory
Agreements, confirmed its obligation to pay all its other expenses, including:
(1) interest charges, taxes, brokerage fees and commissions; (2) certain
insurance premiums; (3) fees, interest charges and expenses of the Trust's
custodian, transfer agent and dividend disbursing agent; (4) telecommunications
expenses; (5) auditing, legal and compliance expenses; (6) costs of the Trust's
formation and maintenance of its existence; (7) costs of preparing and printing
the Trust's prospectuses, statements of additional information, account
application forms and shareholder reports and delivering them to existing and
prospective shareholders; (8) costs of maintaining books of original entry for
portfolio and fund accounting and other required books and accounts and of
<PAGE>
calculating the net asset value of shares of the Trust; (9) costs of
reproduction, stationery and supplies; (10) compensation of the Trust's
trustees, officers and employees and costs of other personnel performing
services for the Trust who are not officers of Norwest, Forum or affiliated
persons of Norwest or Forum; (11) costs of corporate meetings; (12) registration
fees and related expenses for registration with the SEC and the securities
regulatory authorities of other countries in which the Trust's shares are sold;
(13) expenses incurred pursuant to state securities laws; 14) fees and
out-of-pocket expenses payable to Forum Financial Services, Inc. under any
distribution, management or similar agreement; (15) and all other fees and
expenses paid by the Trust pursuant to any distribution or shareholder service
plan adopted pursuant to Rule 12b-1 under the Act.
Trust expenses directly attributed to a Fund are charged to the Fund; other
expenses are allocated proportionately among all the series of the Trust in
relation to the net assets of each series. Similar policies pertain to the
Portfolios.
5. PORTFOLIO TRANSACTIONS
The following discussion of portfolio transactions, while referring generally to
the Funds, relates equally to the Portfolios.
The Advisers place orders for the purchase and sale of assets they manage with
brokers and dealers selected by and in the discretion of the respective Adviser.
Each Adviser seeks "best execution" for all portfolio transactions, but a
Portfolio may pay higher than the lowest available commission rates when the
Adviser believes it is reasonable to do so in light of the value of the
brokerage and research services provided by the broker effecting the
transaction.
Commission rates for brokerage transactions are fixed on many foreign securities
exchanges, and this may cause higher brokerage expenses to accrue to a Portfolio
that invests in foreign securities than would be the case for comparable
transactions effected on U.S. securities exchanges.
Subject to the Portfolios' policy of obtaining the best price consistent with
quality of execution of transactions, each Adviser may employ broker-dealer
affiliates of the Adviser (collectively "Affiliated Brokers") to effect
brokerage transactions. The payment of commissions to Affiliated Brokers is
subject to procedures to provide that the commissions will not exceed the usual
and customary broker's commissions charged by unaffiliated brokers. No specific
portion of a Portfolio's brokerage will be directed to Affiliated Brokers and in
no event will a broker affiliated with the Adviser directing the transaction
receive brokerage transactions in recognition of research services provided to
the Adviser. The Advisers may effect transactions through brokers who sell Fund
shares.
Purchases and sales of portfolio securities for Funds that invest in
fixed-income investments usually are principal transactions. Debt instruments
are normally purchased directly from the issuer or from an underwriter or market
maker for the securities. There usually are no brokerage commissions paid for
such purchases. The Funds generally will effect purchases and sales of equity
securities through brokers who charge commissions except in the over-the-counter
markets. Purchases of debt and equity securities from underwriters of the
securities include a disclosed fixed commission or concession paid by the issuer
to the underwriter, and purchases from dealers serving as market makers include
the spread between the bid and asked price. In the case of debt securities and
equity securities traded in the foreign and domestic over-the-counter markets,
there is generally no stated commission, but the price usually includes an
undisclosed commission or markup. Allocations of transactions to brokers and
dealers and the frequency of transactions are determined by the Advisers in
their best judgment and in a manner deemed to be in the best interest of
shareholders of each Fund rather than by any formula. The primary consideration
is prompt execution of orders in an effective manner and at the most favorable
price available to the Fund. In transactions on stock exchanges in the United
States, commissions are negotiated, whereas on foreign stock exchanges
commissions are generally fixed. Where transactions are executed in the
over-the-counter market, each Fund will seek to deal with the primary market
makers; but when necessary in order to obtain best execution, they will utilize
the services of others. In all cases the Funds will attempt to negotiate best
execution.
Subject to the general policies regarding allocation of portfolio brokerage as
set forth above, each of the Board, and Core Trust Board has authorized the
Advisers to employ their respective affiliates to effect securities transactions
of
<PAGE>
the Funds or the Portfolios, provided certain other conditions are satisfied.
Payment of brokerage commissions to an affiliate of an Adviser for effecting
such transactions is subject to Section 17(e) of the 1940 Act, which requires,
among other things, that commissions for transactions on securities exchanges
paid by a registered investment company to a broker which is an affiliated
person of such investment company, or an affiliated person of another person so
affiliated, not exceed the usual and customary brokers' commissions for such
transactions. It is the Fund's policy that commissions paid to Schroder
Securities Limited, Norwest Investment Services, Inc. ("NISI") and other
affiliates of an Adviser will, in the judgment of the Adviser responsible for
making portfolio decisions and selecting brokers, be: (1) at least as favorable
as commissions contemporaneously charged by the affiliate on comparable
transactions for its most favored unaffiliated customers and (2) at least as
favorable as those which would be charged on comparable transactions by other
qualified brokers having comparable execution capability. The Board, including a
majority of the disinterested Trustees, has adopted procedures to ensure that
commissions paid to affiliates of an Adviser by the Funds satisfy the foregoing
standards. The Core Trust has adopted similar policies with respect to the
Portfolios.
No Fund has an understanding or arrangement to direct any specific portion of
its brokerage to an affiliate of an Adviser, and will not direct brokerage to an
affiliate of an Adviser in recognition of research services. The practice of
placing orders with NISI is consistent with each Fund's objective of obtaining
best execution and is not dependent on the fact that NISI is an affiliate of
Norwest.
From time to time, a Fund may purchase securities of a broker or dealer through
which it regularly engages in securities transactions.
A Fund or Portfolio may not always pay the lowest commission or spread
available. Rather, in determining the amount of commissions, including certain
dealer spreads, paid in connection with securities transactions, the Adviser of
the Fund or Portfolio takes into account factors such as size of the order,
difficulty of execution, efficiency of the executing broker's facilities
(including the services described below) and any risk assumed by the executing
broker. The Advisers may also take into account payments made by brokers
effecting transactions for a Fund or Portfolio: (1) to the Fund or Portfolio or
(2) to other persons on behalf of the Fund or Portfolio for services provided to
the Fund or Portfolio for which it would be obligated to pay.
In addition, the Advisers may give consideration to research services furnished
by brokers to the Advisers for their use and may cause the Funds and Portfolios
to pay these brokers a higher amount of commission than may be charged by other
brokers. Such research and analysis is of the types described in Section
28(e)(3) of the Securities Exchange Act of 1934, as amended, and is designed to
augment the Adviser's own internal research and investment strategy
capabilities. Such research and analysis may be used by the Advisers in
connection with services to clients other than the Funds and Portfolios, and not
all such services may be used by the Adviser in connection with the Funds. An
Adviser's fees are not reduced by reason of the Adviser's receipt of the
research services.
Consistent with the Rules of Fair Practice of the National Association of
Securities Dealers, Inc. and subject to the obligation to seek the most
favorable price and execution available and such other policies as the Boards
may determine, an Adviser may consider sales of shares of a Fund as a factor in
the selection of broker-dealers to execute portfolio transactions for the Fund.
Investment decisions for the Funds (and for the Portfolios) will be made
independently from those for any other account or investment company that is or
may in the future become managed by the Advisers or their affiliates. Investment
decisions are the product of many factors, including basic suitability for the
particular client involved. Thus, a particular security may be bought or sold
for certain clients even though it could have been bought or sold for other
clients at the same time. Likewise, a particular security may be bought for one
or more clients when one or more clients are selling the security. In some
instances, one client may sell a particular security to another client. It also
sometimes happens that two or more clients simultaneously purchase or sell the
same security, in which event each day's transactions in such security are,
insofar as is possible, averaged as to price and allocated between such clients
in a manner which, in the respective Adviser's opinion, is equitable to each and
in accordance with the amount being purchased or sold by each. There may be
circumstances when purchases or sales of a portfolio security for one client
could have an adverse effect on another client that has a position in that
security. In addition,
<PAGE>
when purchases or sales of the same security for a Fund and other client
accounts managed by the Advisers occur contemporaneously, the purchase or sale
orders may be aggregated in order to obtain any price advantages available to
large denomination purchases or sales.
Certain Funds may acquire securities issued by their "regular brokers and
dealers" or the parents of those brokers and dealers. Regular brokers and
dealers means the 10 brokers or dealers that: (1) received the greatest amount
of brokerage commissions during the Fund's last fiscal year, (2) engaged in the
largest amount of principal transactions for portfolio transactions of the Fund
during the Fund's last fiscal year; or (3) sold the largest amount of the Fund's
shares during the Fund's last fiscal year.
PORTFOLIO TURNOVER. A high rate of portfolio turnover involves corresponding
greater expenses than a lower rate, which expenses must be borne by a Fund and
its shareholders. High portfolio turnover also may result in the realization of
substantial net short-term capital gains. In order to continue for Federal tax
purposes, less than 30% of the annual gross income of the Fund must be desired
from the sale of securities held by the Fund for less than three months.
The frequency of portfolio transactions (the portfolio turnover rate) will vary
from year to year depending on many factors. From time to time a Portfolio may
engage in active short-term trading to take advantage of price movements
affecting individual issues, groups of issues or markets. The Advisers
anticipate that the annual portfolio turnover rate of each Portfolio will be
less than 100% in their first year of operations. An annual portfolio turnover
rate of 100% would occur if all of the securities in a Portfolio were replaced
once in a period of one year. Higher portfolio turnover rates may result in
increased brokerage costs and an increase in short term capital gains or losses
to the Portfolio.
6. ADDITIONAL PURCHASE AND REDEMPTION INFORMATION
GENERAL
Shares of all Funds are sold on a continuous basis by the distributor.
REDEMPTIONS
In addition to the situations described in the Prospectus with respect to the
redemptions of shares, the Trust may redeem shares involuntarily to reimburse a
Fund for any loss sustained by reason of the failure of a shareholder to make
full payment for shares purchased by the shareholder or to collect any charge
relating to transactions effected for the benefit of a shareholder which is
applicable to a Fund's shares as provided in the Prospectus from time to time.
Proceeds of redemptions normally are paid in cash. However, payments may be made
wholly or partially in portfolio securities if the Board determines that payment
in cash would be detrimental to the best interests of the Fund. The Funds have
chosen not to make an election with the SEC to pay in cash all redemptions
requested by any shareholder of record limited in amount during any 90-day
period to the lesser of $250,000 or 1% of its net assets at the beginning of
such period. Redemption requests in excess of applicable limits may be paid, in
whole or in part, in investment securities or in cash, as the Trust's Board of
Trustees may deem advisable; however, payment will be made wholly in cash unless
the Board of Trustees believes that economic or market conditions exist that
would make such a practice detrimental to the best interests of the Fund. If
redemption proceeds are paid in investment securities, such securities will be
valued as set forth in the Prospectus and a redeeming shareholder would normally
incur brokerage expenses if he or she were to convert the securities to cash.
7. TAXATION
TAX INFORMATION
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Each Fund intends to qualify for each fiscal year to be taxed as a "regulated
investment company" under the Internal Revenue Code of 1986, as amended. As
such, each Fund will not be liable for federal income and excise taxes on the
net investment income and net capital gain distributed to its shareholders.
Because each Fund intends to distribute all of its net investment income and net
capital gain each year, each Fund should thereby avoid all federal income and
excise taxes.
Dividends paid by a Fund out of its net investment income (including net
short-term capital gain) are taxable to you as ordinary income. Two different
tax rates apply to net capital gain - that is, the excess of gains from capital
assets held for more than one year over net losses from capital assets held for
not more than one year. One rate (generally 28%) may apply to net gain from
capital assets held for more than one year but not more than 18 months
("mid-term gain"), and a second rate (generally 20%) may apply to the balance of
net capital gain ("adjusted net capital gain"). Distributions of mid-term gain
and adjusted net capital gain will be taxable to shareholders as such,
regardless of how long a shareholder has held shares in the Fund. If you hold
shares for six months or less and during that period receive a long-term capital
gain distribution, any loss realized on the sale of the shares during that
six-month period will be a long-term capital loss to the extent of the
distribution. Dividends and distributions reduce the net asset value of the Fund
paying the dividend or distribution by the amount of the dividend or
distribution. Dividends or distributions made to you shortly after the purchase
of Shares, although in effect a return of capital to you, will be taxable to you
as described above.
It is expected that a portion of the dividends of each Fund, except Performa
Strategic Value Bond Fund, will be eligible for the dividends received deduction
for corporations. The amount of such dividends eligible for the dividends
received deduction is limited to the amount of dividends from domestic
corporations received during a Fund's fiscal year.
No Portfolio is required to pay federal income taxes on its net investment
income and capital gain, as each Portfolio is treated as a partnership for
federal income tax purposes. All interest, dividends and gains and losses of a
Portfolio are deemed to have been "passed through" to the Funds investing in the
Portfolio in proportion to the Funds' holdings of the Portfolio, regardless of
whether such interest, dividends or gains have been distributed by the Portfolio
or losses have been realized by the Portfolio.
Investment income received by a Fund from sources within foreign countries may
be subject to foreign income or other taxes. Performa Global Growth Fund intends
to elect, if eligible to do so, to permit its shareholders to take a credit (or
a deduction) for foreign income and other taxes paid by its Portfolio. As a
shareholder of that Fund, you will be notified of your share of those foreign
taxes and will be required to treat the amount of such foreign taxes as
additional income. In that event, you may be entitled to claim a credit or
deduction for those taxes.
Each Fund is required by federal law to withhold 31% of reportable payments paid
to you (which may include dividends, capital gain distributions and redemptions)
if you fail to provide the Fund with a correct taxpayer identification number or
make required certifications, or who is subject to backup withholding. Reports
containing appropriate information with respect to the federal income tax status
of dividends and distributions paid during the year by each Fund will be mailed
to you shortly after the close of each calendar year.
Qualification as a regulated investment company does not, of course, involve
governmental supervision of management or investment practices or policies.
Investors should consult their own counsel for a complete understanding of the
requirements each Fund must meet to qualify for such treatment, and of the
application of state and local tax laws to his or her particular situation.
Certain listed options, regulated futures contracts and forward currency
contracts are considered "section 1256 contracts" for Federal income tax
purposes. Section 1256 contracts held by a Portfolio at the end of each taxable
year will be "marked to market" and treated for Federal income tax purposes as
though sold for fair market value on the last business day of such taxable year.
Gain or loss realized by a Portfolio on section 1256 contracts generally will be
considered 60% long-term and 40% short-term capital gain or loss. Each Portfolio
can elect to exempt its section 1256 contracts which are part of a "mixed
straddle" (as described below) from the application of section 1256.
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With respect to over-the-counter put and call options, gain or loss realized by
a Portfolio upon the lapse or sale of such options held by such Portfolio will
be either long-term or short-term capital gain or loss depending upon the
Portfolio's holding period with respect to such option. However, gain or loss
realized upon the lapse or closing out of such options that are written by a
Portfolio will be treated as short-term capital gain or loss. In general, if a
Portfolio exercises an option, or an option that a Portfolio has written is
exercised, gain or loss on the option will not be separately recognized but the
premium received or paid will be included in the calculation of gain or loss
upon disposition of the property underlying the option.
Any option, futures contract, or other position entered into or held by a
Portfolio in conjunction with any other position held by such Portfolio may
constitute a "straddle" for Federal income tax purposes. A straddle of which at
least one, but not all, the positions are section 1256 contracts may constitute
a "mixed straddle". In general, straddles are subject to certain rules that may
affect the character and timing of a Portfolio's gains and losses with respect
to straddle positions by requiring, among other things, that: (1) loss realized
on disposition of one position of a straddle not be recognized to the extent
that a Portfolio has unrealized gains with respect to the other position in such
straddle; (2) a Portfolio's holding period in straddle positions be suspended
while the straddle exists (possibly resulting in gain being treated as
short-term capital gain rather than long-term capital gain); (3) losses
recognized with respect to certain straddle positions which are part of a mixed
straddle and which are non-section 1256 positions be treated as 60% long-term
and 40% short-term capital loss; (4) losses recognized with respect to certain
straddle positions which would otherwise constitute short-term capital losses be
treated as long-term capital losses; and (5) the deduction of interest and
carrying charges attributable to certain straddle positions may be deferred.
Various elections are available to a Portfolio which may mitigate the effects of
the straddle rules, particularly with respect to mixed straddles. In general,
the straddle rules described above do not apply to any straddles held by a
Portfolio all of the offsetting positions of which consist of section 1256
contracts.
For federal income tax purposes, gains and losses attributable to fluctuations
in exchange rates which occur between the time a Portfolio accrues interest or
other receivables or accrues expenses or other liabilities denominated in a
foreign currency and the time the Portfolio actually collects such receivables
or pays such liabilities are treated as ordinary income or ordinary loss.
Similarly, gains or losses from the disposition of foreign currencies, from the
disposition of debt securities denominated in a foreign currency, or from the
disposition of a forward contract denominated in a foreign currency which are
attributable to fluctuations in the value of the foreign currency between the
date of acquisition of the asset and the date of disposition also are treated as
ordinary gain or loss.
A Portfolio's investments in zero coupon securities will be subject to special
provisions of the Code which may cause the Portfolio to recognize income without
receiving cash necessary to pay dividends or make distributions in amounts
necessary to satisfy the distribution requirements for avoiding federal income
and excise taxes. In order to satisfy those distribution requirements the
Portfolio may be forced to sell other portfolio securities.
If Performa Global Growth Fund is eligible to do so, the Fund intends to file an
election with the Internal Revenue Service to pass through to its shareholders
its share of the foreign taxes paid by the Schroder Global Growth Portfolio.
Pursuant to this election, a shareholder will be required to: (1) include in
gross income (in addition to taxable dividends actually received) his pro rata
share of foreign taxes considered to have been paid by the Fund; (2) treat his
pro rata share of such foreign taxes as having been paid by him; and (3) either
deduct such pro rata share of foreign taxes in computing his taxable income or
treat such foreign taxes as a credit against federal income taxes. No deduction
for foreign taxes may be claimed by an individual shareholder who does not
itemize deductions. In addition, certain shareholders may be subject to rules
which limit or reduce their ability to fully deduct, or claim a credit for,
their pro rata share of the foreign taxes considered to have been paid by the
Fund. Under recently enacted legislation, a shareholder's foreign tax credit
with respect to a dividend received from the Fund will be disallowed unless the
shareholder holds shares in the Fund at least 16 days during the 30-day period
beginning 15 days before the date on which the shareholder becomes entitled to
receive the dividend.
8. ADDITIONAL INFORMATION ABOUT THE TRUST AND THE SHAREHOLDERS
OF THE FUNDS
<PAGE>
COUNSEL AND AUDITORS
Legal matters in connection with the issuance of shares of beneficial interest
of the Trust are passed upon by the law firm of Seward & Kissel, One Battery
Park Plaza, New York, NY 10004.
_____________________, 99 High Street, Boston, MA 02110, independent auditors,
serve as the independent auditors for the Trust.
OWNERSHIP OF FUND SHARES
The following persons owned of record 5% or more of the outstanding shares of a
Fund as of_________, 1998:
<TABLE>
<S> <C> <C> <C>
SHARE % OF % OF
NAME AND ADDRESS BALANCE CLASS FUND
---------------- -------- ----- -----
</TABLE>
GENERAL INFORMATION
The Board of Trustees oversees the business affairs of the Funds and is
responsible for major decisions relating to each Fund's investment objective and
policies. The Board formulates the general policies of the Funds and meets
periodically to review the results of the Funds, monitor investment activities
and practices and discuss other matters affecting the Funds and the Trust. The
Board consists of eight persons. A board of trustees for each Core Trust (each a
"Core Board") performs similar functions with respect to the Portfolios of those
investment companies. The Core Board also monitors the activities of each
Portfolio and its service providers.
The Trust has an unlimited number of authorized shares of beneficial interest.
The Board may, without shareholder approval, divide the authorized shares into
an unlimited number of separate portfolios or series (such as the Funds) and may
divide portfolios or series into classes of shares; the costs of doing so will
be borne by the Trust. As of the date of this SAI, each Fund offers one class of
shares. The Trust currently offers thirty-nine separate series.
VOTING AND OTHER RIGHTS
Each share has one vote, with fractional shares voting proportionally. Shares of
the Trust will vote together without regard to series or classes of shares on
all matters except: (1) when required by the 1940 Act or when the Trustees have
determined that the matter affects the interests of one or more series or
classes materially differently, shares will be voted by individual series or
class; and (2) when the Trustees have determined that the matter affects only
the interest of one or more series or classes, only shareholders of that series
or class shall be entitled to vote thereon. Shares are freely transferable, are
entitled to dividends as declared by the Trustees. If a Fund were liquidated,
its shareholder would receive the net assets of the Fund.
Delaware law does not require the Trust to hold annual meetings of shareholders,
and it is anticipated that shareholder meetings will be held only when
specifically required by federal or state law. Shareholders (and Trustees) have
available certain procedures for the removal of Trustees. There are no
conversion or preemptive rights in connection with shares of the Trust. All
shares when issued in accordance with the terms of the offering will be fully
paid and nonassessable. Shares are redeemable at net asset value, at the option
of the shareholder. A shareholder in a series is entitled to the shareholder's
pro rata share of all dividends and distributions arising from that series'
assets and, upon redeeming shares, will receive the portion of the series' net
assets represented by the redeemed shares.
Each Portfolio normally will not hold meetings of investors except as required
by the 1940 Act. Each investor in a Portfolio will be entitled to vote in
proportion to its relative beneficial interest in the Portfolio. When required
by the 1940 Act and other applicable law, a Fund will solicit proxies from its
shareholders and will vote its interest in a Portfolio in proportion to the
votes cast by its shareholders. If there are other investors in a Portfolio,
there can be no assurance that any issue that receives a majority of the votes
cast by Fund shareholders will receive a majority of votes
<PAGE>
cast by all investors in the Portfolio; indeed, if other investors hold a
majority interest in the Portfolio, they could hold have voting control of the
Portfolio.
From time to time, certain shareholders may own a large percentage of the Fund
shares and, accordingly, may be able to greatly affect (if not determine) the
outcome of a shareholder vote. Due to its initial investment in each Fund, prior
to the public offering of each Fund, Forum may be deemed to control each Fund.
The Trust received an order from the SEC permitting the issuance and sale of
separate classes of shares representing interests in each of the Trust's
existing funds; however, the Trust currently issues and operates the various
Funds, and separate classes of shares under the provisions of 1940 Act.
The Trust's shareholders are not personally liable for the obligations of the
Trust under Delaware law. The Delaware Business Trust Act (the "Delaware Act")
provides that a shareholder of a Delaware business trust shall be entitled to
the same limitation of liability extended to shareholders of private
corporations for profit. However, no similar statutory or other authority
limiting business trust shareholder liability exists in many other states. As a
result, to the extent that the Trust or a shareholder is subject to the
jurisdiction of courts in those states, the courts may not apply Delaware law,
and may thereby subject the Trust shareholders to liability. To guard against
this risk, the Trust Instrument of the Trust disclaims shareholder liability for
acts or obligations of the Trust and requires that notice of such disclaimer be
given in each agreement, obligation and instrument entered into by the Trust or
its Trustees, and provides for indemnification out of Trust property of any
shareholder held personally liable for the obligations of the Trust. Thus, the
risk of a shareholder incurring financial loss beyond his investment because of
shareholder liability is limited to circumstances in which: (1) a court refuses
to apply Delaware law; (2) no contractual limitation of liability is in effect;
and (3) the Trust itself is unable to meet its obligations. In light of Delaware
law, the nature of the Trust's business, and the nature of its assets, the Board
believes that the risk of personal liability to a Trust shareholder is extremely
remote.
In order to adopt the name Norwest Funds, the Trust agreed in each Investment
Advisory Agreement with Norwest that if Norwest ceases to act as investment
adviser to the Trust or any Fund whose name includes the word "Norwest," or if
Norwest requests in writing, the Trust shall take prompt action to change the
name of the Trust and any such Fund to a name that does not include the word
"Norwest." Norwest may from time to time make available without charge to the
Trust for the Trust's use any marks or symbols owned by Norwest, including marks
or symbols containing the word "Norwest" or any variation thereof, as Norwest
deems appropriate. Upon Norwest's request in writing, the Trust shall cease to
use any such mark or symbol at any time. The Trust has acknowledged that any
rights in or to the word "Norwest" and any such marks or symbols which exist or
may exist, and under any and all circumstances, shall continue to be, the sole
property of Norwest. Norwest may permit other parties, including other
investment companies, to use the word "Norwest" in their names without the
consent of the Trust. The Trust shall not use the word "Norwest" in conducting
any business other than that of an investment company registered under the Act
without the permission of Norwest.
BANKING LAW MATTERS
Federal banking rules generally permit a bank or bank affiliate to act as
investment adviser, transfer agent, or custodian to a fund and to purchase
shares of the investment company as agent for and upon the order of a customer
and, in connection therewith, to retain a sales charge or similar payment.
Norwest and any bank or other bank affiliate also may perform Processing
Organization or similar services for the Funds and their shareholders. If a bank
or bank affiliate were prohibited in the future from so acting, changes in the
operation of the Funds could occur and a shareholder serviced by the bank or
bank affiliate may no longer be able to avail itself of those services. It is
not expected that shareholders would suffer any adverse financial consequences
as a result of any of these occurrences.
<PAGE>
CORE AND GATEWAY STRUCTURE
Each Fund seeks to achieve its investment objective by investing all of its
investable assets in its corresponding Portfolio, that has the same investment
objective and substantially identical investment policies as the Fund.
Accordingly, each Portfolio directly acquires portfolio securities and a Fund
acquires an indirect interest in those securities. Each Portfolio (other than
Schroder Global Growth Portfolio) is a separate series of Core, a business trust
organized under the laws of the State of Delaware in 1994. Schroder Global
Growth Portfolio is a separate series of Schroder Core, a business trust
organized under the laws of the State of Delaware in 1995. Core Trust and
Schroder Core are registered under the 1940 Act as open-end, management,
investment companies. The assets of each Portfolio belong only to, and the
liabilities of each Portfolio are borne solely by, that Portfolio and no other
portfolio of Core Trust or Schroder Core, as applicable.
THE PORTFOLIOS. A Fund's investment in a Portfolio is in the form of a
non-transferable beneficial interest. All investors in a Portfolio will invest
on the same terms and conditions and will pay a proportionate share of the
Portfolio's expenses.
The Portfolios do not sell their shares directly to members of the general
public. Another investor in a Portfolio, such as an investment company, that
might sell its shares to members of the general public would not be required to
sell its shares at the same public offering price as any Fund, and could have
different advisory and other fees and expenses than a Fund. Therefore, Fund
shareholders may have different returns than shareholders in another investment
company that invests in a Portfolio. Information regarding any such funds is
available from Core Trust by calling Forum at (207) 879-1900.
CERTAIN RISKS OF INVESTING IN PORTFOLIOS. A Fund's investment in a Portfolio may
be affected by the actions of other large investors in that Portfolio. For
example, if Disciplined Growth Portfolio had a large investor other than
Performa Disciplined Growth Fund that redeemed its interest, Disciplined Growth
Portfolio's remaining investors (including Disciplined Growth Fund) might, as a
result, experience higher pro rata operating expenses, thereby producing lower
returns. As there may be other investors in a Portfolio, there can be no
assurance that any issue that receives a majority of the votes cast by a Fund's
shareholders will receive a majority of votes cast by all investors in a
Portfolio; indeed, other investors holding a majority interest in a Portfolio
could have voting control of the Portfolio.
The Board retains the right to withdraw each Fund's investment in a Portfolio at
any time, and the Fund could thereafter invest directly in individual securities
or could re-invest its assets in one or more other Core Portfolios. A Fund might
withdraw its investment from a Portfolio, for example, if there were other
investors in the Portfolio with power to, and who did by a vote of all investors
(including the Fund), change the investment objective or policies of the
Portfolio in a manner not acceptable to the Board. A withdrawal could result in
a distribution in kind of portfolio securities (as opposed to a cash
distribution) by the Portfolio. That distribution could result in a less
diversified portfolio of investments for the Fund and could affect adversely the
liquidity of the Fund's portfolio. If the Fund decided to convert those
securities to cash, it would incur brokerage fees or other transaction costs. If
the Fund withdrew its investment from a Portfolio, the Board would consider what
action might be taken, including the management of the Fund's assets directly by
Norwest or the investment of the Fund's assets in another pooled investment
entity. The inability of the Fund to find a suitable replacement investment, in
the event the Board decided not to permit Norwest to manage the Fund's assets
directly, could have a significant impact on shareholders of the Fund.
FINANCIAL STATEMENTS
The fiscal year end of the Funds is May 31. Financial statements for each Fund's
semi-annual period and fiscal year will be distributed to shareholders of
record. The Board in the future may change the fiscal year end of the Fund.
REGISTRATION STATEMENT
This SAI and the Prospectus do not contain all the information included in the
Trust's registration statement filed with the SEC under the 1933 Act with
respect to the securities offered hereby, certain portions of which have been
<PAGE>
omitted pursuant to the rules and regulations of the SEC. The registration
statement, including the exhibits filed therewith, may be examined at the office
of the SEC in Washington, D.C.
Statements contained herein and in the Prospectus as to the contents of any
contract or other documents are not necessarily complete, and, in each instance,
are qualified by, reference is made to the copy of such contract or other
documents filed as exhibits to the registration statement.
<PAGE>
APPENDIX A - DESCRIPTION OF SECURITIES RATINGS
MUNICIPAL AND CORPORATE BONDS (INCLUDING CONVERTIBLE BONDS)
MOODY'S INVESTORS SERVICE ("MOODY'S")
Moody's rates corporate bond issues, including convertible debt issues, as
follows:
Bonds which are rated Aaa are judged by Moody's to be of the best quality. They
carry the smallest degree of investment risk and are generally referred to as
"gilt edge." Interest payments are protected by a large or by an exceptionally
stable margin and principal is secure. While the various protective elements are
likely to change, such changes as can be visualized are most unlikely to impair
the fundamentally strong position of such issues.
Bonds which are rated Aa are judged to be of high quality by all standards.
Together with the Aaa group, they comprise what are generally known as
high-grade bonds. They are rated lower than the best bonds because margins of
protection may not be as large as in Aaa securities or fluctuation of protective
elements may be of greater amplitude or there may be other elements present
which make the long term risks appear somewhat larger than in Aaa securities.
Bonds which are rated A possess many favorable investment attributes and are to
be considered as upper medium grade obligations. Factors giving security to
principal and interest are considered adequate but elements may be present which
suggest a susceptibility to impairment some time in the future.
Bonds which are rated Baa are considered as medium grade obligations, i.e., they
are neither highly protected nor poorly secured. Interest payment and principal
security appear adequate for the present but certain protective elements may be
lacking or may be characteristically unreliable over any great length of time.
Such bonds lack outstanding investment characteristics and in fact have
speculative characteristics as well.
Bonds which are rated Ba are judged to have speculative elements; their future
cannot be considered as well assured. Often the protection of interest and
principal payments may be very moderate and thereby not well safeguarded during
both good and bad times over the future. Uncertainty of position characterizes
bonds in this class.
Bonds which are rated B generally lack characteristics of the desirable
investment. Assurance of interest and principal payments or of maintenance of
other terms of the contract over any long period of time may be small.
Bonds which are rated Caa are of poor standing. Such issues may be in default or
there may be present elements of danger with respect to principal or interest.
Bonds which are rated Ca represent obligations which are speculative in a high
degree. Such issues are often in default or have other marked shortcomings.
Bonds which are rated C are the lowest rated class of bonds and issues so rated
can be regarded as having extremely poor prospects of ever attaining any real
investment standing.
Note: Those bonds in the Aa, A, Baa, Ba or B groups which Moody's believes
possess the strongest investment attributes are designated by the symbols Aa1,
A1, Baa1, Ba1, and B1.
<PAGE>
STANDARD AND POOR'S CORPORATION ("S&P")
S&P rates corporate bond issues, including convertible debt issues, as follows:
Bonds rated AAA have the highest rating assigned by S&P. Capacity to pay
interest and repay principal is extremely strong.
Bonds rated AA have a very strong capacity to pay interest and repay principal
and differ from the highest rated issues only in small degree.
Bonds rated A have a strong capacity to pay interest and repay principal,
although they are somewhat more susceptible to the adverse effects of changes in
circumstances and economic conditions than debt rated in higher rated
categories.
Bonds rated BBB are regarded as having an adequate capacity to pay interest and
repay principal. Whereas they normally exhibit adequate protection parameters,
adverse economic conditions or changing circumstances are more likely to lead to
weakened capacity to pay interest and repay principal for debt in this category
than in higher rated categories.
Bonds rated BB, B, CCC, CC and C are regarded, on balance, as predominantly
speculative with respect to the issuer's capacity to pay interest and repay
principal in accordance with the terms of the obligation. BB indicates the
lowest degree of speculation and C the highest degree of speculation. While such
bonds will likely have some quality and protective characteristics, these are
outweighed by large uncertainties or major risk exposures to adverse conditions.
Bonds rated BB have less near-term vulnerability to default than other
speculative issues. However, they face major ongoing uncertainties or exposure
to adverse business, financial, or economic conditions which could lead to
inadequate capacity to meet timely interest and principal payments.
Bonds rated B have a greater vulnerability to default but currently have the
capacity to meet interest payments and principal payments. Adverse business,
financial, or economic conditions will likely impair capacity or willingness to
pay interest and repay principal.
Bonds rated CCC have currently identifiable vulnerability to default, and are
dependent upon favorable business, financial, and economic conditions to meet
timely payment of interest and repayment of principal. In the event of adverse
business, financial, or economic conditions, they are not likely to have the
capacity to pay interest and repay principal.
Bonds rated C typically are subordinated to senior debt which as assigned an
actual or implied CCC debt rating. This rating may also be used to indicate
imminent default.
The C rating may be used to cover a situation where a bankruptcy petition has
been filed, but debt service payments are continued. The rating Cl is reserved
for income bonds on which no interest is being paid.
Bonds are rated D when the issue is in payment default, or the obligor has filed
for bankruptcy. The D rating category is used when interest payments or
principal payments are not made on the date due, even if the applicable grace
period has not expired, unless S&P believes that such payments will made during
such grace period.
Note: The ratings from AA to CCC may be modified by the addition of a plus (+)
or minus (-) sign to show the relative standing within the rating category.
<PAGE>
FITCH IBCA, INC. ("FITCH")
Fitch rates corporate bond issues, including convertible debt issues, as
follows:
AAA Bonds are considered to be investment grade and of the highest credit
quality. The obligor has an exceptionally strong ability to pay interest and
repay principal, which is unlikely to be affected by reasonably foreseeable
events.
AA Bonds are considered to be investment grade and of very high credit quality.
The obligor's ability to pay interest and repay principal is very strong,
although not quite as strong as bonds rated AAA. Because bonds rated in the AAA
and AA categories are not significantly vulnerable to foreseeable future
developments, shorter-term debt of these issuers is generally rated F-1+.
A Bonds are considered to be investment grade and of high credit quality. The
obligor's ability to pay interest and repay principal is considered to be
strong, but may be more vulnerable to adverse changes in economic conditions and
circumstances than bonds with higher ratings.
BBB Bonds are considered to be investment grade and of satisfactory credit
quality. The obligor's ability to pay interest and repay principal is considered
to be adequate. Adverse changes in economic conditions and circumstances,
however, are more likely to have adverse impact on these bonds, and therefore
impair timely payment. The likelihood that the ratings of these bonds will fall
below investment grade is higher than for bonds with higher ratings.
BB Bonds are considered speculative. The obligor's ability to pay interest and
repay principal may be affected over time by adverse economic changes. However,
business and financial alternatives can be identified which could assist the
obligor in satisfying its debt service requirements.
B Bonds are considered highly speculative. While bonds in this class are
currently meeting debt service requirements, the probability of continued timely
payment of principal and interest reflects the obligor's limited margin of
safety and the need for reasonable business and economic activity throughout the
life of the issue.
CCC Bonds have certain identifiable characteristics which, if not remedied, may
lead to default. The ability to meet obligations requires an advantageous
business and economic environment.
CC Bonds are minimally protected. Default in payment of interest and/or
principal seems probable over time.
C Bonds are in imminent default in payment of interest or principal.
DDD, DD, and D Bonds are in default on interest and/or principal payments. Such
bonds are extremely speculative and should be valued on the basis of their
ultimate recovery value in liquidation or reorganization of the obligor. DDD
represents the highest potential for recovery on these bonds, and D represents
the lowest potential for recovery.
Plus (+) and minus (-) signs are used with a rating symbol to indicate the
relative position of a credit within the rating category. Plus and minus signs,
however, are not used in the AAA, DDD, DD, or D categories.
<PAGE>
PREFERRED STOCK
MOODY'S INVESTORS SERVICE
Moody's rates preferred stock as follows:
An issue rated aaa is considered to be a top-quality preferred stock. This
rating indicates good asset protection and the least risk of dividend impairment
among preferred stock issues.
An issue rated aa is considered a high-grade preferred stock. This rating
indicates that there is a reasonable assurance that earnings and asset
protection will remain relatively well maintained in the foreseeable future.
An issue rated a is considered to be an upper-medium grade preferred stock.
While risks are judged to be somewhat greater than in the aaa and aa
classification, earnings and asset protection are, nevertheless, expected to be
maintained at adequate levels.
An issue rated baa is considered to be a medium-grade, neither highly protected
nor poorly secured. Earnings and asset protection appear adequate at present but
may be questionable over any great length of time.
An issue rated ba is considered to have speculative elements and its future
cannot be considered well assured. Earnings and asset protection may be very
moderate and not well safeguarded during adverse periods. Uncertainty of
position characterizes preferred stocks in this class.
An issue which is rated b generally lacks the characteristics of a desirable
investment. Assurance of dividend payments and maintenance of other terms of the
issue over any long period of time may be small.
An issue which is rated caa is likely to be in arrears on dividend payments.
This rating designation does not purport to indicate the future status of
payments.
An issue which is rated ca is speculative in a high degree and is likely to be
in arrears on dividends with little likelihood of eventual payment.
An issue which is rated c can be regarded as having extremely poor prospects of
ever attaining any real investment standing. This is the lowest rated class of
preferred or preference stock.
Note: Moody's applies numerical modifiers 1, 2 and 3 in each rating
classification from aa through b in its preferred stock rating system. The
modifier 1 indicates that the security ranks in the higher end of its generic
rating category; the modifier 2 indicates a mid-range ranking; and the modifier
3 indicates that the issuer ranks in the lower end of its generic rating
category.
STANDARD & POOR'S
S&P rates preferred stock as follows:
AAA is the highest rating that is assigned by S&P to a preferred stock issue and
indicates an extremely strong capacity to pay the preferred stock obligations.
A preferred stock issue rated AA also qualifies as a high-quality fixed income
security. The capacity to pay preferred stock obligations is very strong,
although not as overwhelming as for issues rated AAA.
An issue rated A is backed by a sound capacity to pay the preferred stock
obligations, although it is somewhat more susceptible to the adverse effects of
changes in circumstances and economic conditions.
<PAGE>
An issue rated BBB is regarded as backed by an adequate capacity to pay the
preferred stock obligations. Whereas it normally exhibits adequate protection
parameters, adverse economic conditions or changing circumstances are more
likely to lead to a weakened capacity to make payments for a preferred stock in
this category than for issues in the A category.
Preferred stock rated BB, B, and CCC are regarded, on balance, as predominantly
speculative with respect to the issuer's capacity to pay preferred stock
obligations. BB indicates the lowest degree of speculation and CCC the highest
degree of speculation. While such issues will likely have some quality and
protective characteristics, these are outweighed by large uncertainties or major
risk exposures to adverse conditions.
The rating CC is reserved for a preferred stock issue in arrears on dividends or
sinking fund payments but that is currently paying.
A preferred stock rated C is a non-paying issue.
A preferred stock rated D is a non-paying issue with the issuer in default on
debt instruments.
To provide more detailed indications of preferred stock quality, the ratings
from AA to CCC may be modified by the addition of a plus (+) or minus (-) sign
to show relative standing within the major rating categories.
SHORT TERM MUNICIPAL LOANS
MOODY'S INVESTORS SERVICE. Moody's highest rating for short-term municipal loans
is MIG-1/VMIG-1. A rating of MIG-1/VMIG-1 denotes best quality. There is present
strong protection by established cash flows, superior liquidity support or
demonstrated broadbased access to the market for refinancing. Loans bearing the
MIG-2/VMIG-2 designation are of high quality. Margins of protection are ample
although not so large as in the MIG-1/VMIG-1 group. A rating of MIG 3/VMIG 3
denotes favorable quality. All security elements are accounted for but there is
lacking the undeniable strength of the preceding grades. Liquidity and cash flow
protection may be narrow and market access for refinancing is likely to be less
well established. A rating of MIG 4/VMIG 4 denotes adequate quality. Protection
commonly regarded as required of an investment security is present and although
not distinctly or predominantly speculative, there is specific risk.
STANDARD & POOR'S. S&P's highest rating for short-term municipal loans is SP-1.
S&P states that short-term municipal securities bearing the SP-1 designation
have very strong or strong capacity to pay principal and interest. Those issues
rated SP-1 which are determined to possess overwhelming safety characteristics
will be given a plus (+) designation. Issues rated SP-2 have satisfactory
capacity to pay principal and interest. Issues rated SP-3 have speculative
capacity to pay principal and interest.
FITCH IBCA, INC. Fitch's short-term ratings apply to debt obligations that are
payable on demand or have original maturities of generally up to three years,
including commercial paper, certificates of deposit, medium-term notes, and
municipal and investment notes.
Short-term issues rated F-1+ are regarded as having the strongest degree of
assurance for timely payment. Issues assigned a rating of F-1 reflect an
assurance of timely payment only slightly less in degree than issues rated F-1+.
Issues assigned a rating of F-2 have a satisfactory degree of assurance for
timely payment, but the margin of safety is not as great as for issues assigned
F-1+ or F-1.
OTHER MUNICIPAL SECURITIES AND COMMERCIAL PAPER
MOODY'S INVESTORS SERVICE
Moody's two highest ratings for short-term debt, including commercial paper, are
Prime-1 and Prime-2. Both are judged investment grade, to indicate the relative
repayment ability of rated issuers.
<PAGE>
Issuers rated Prime-1 have a superior ability for repayment of senior short-term
debt obligations. Prime-1 repayment ability will often be evidenced by many of
the following characteristics: Leading market positions in well-established
industries; high rates of return on funds employed; conservative capitalization
structure with moderate reliance on debt and ample asset protection; broad
margins in earnings coverage of fixed financial charges and high internal cash
generation; well-established access to a range of financial markets and assured
sources of alternate liquidity.
Issuers rated Prime-2 by Moody's have a strong ability for repayment of senior
short-term debt obligations. This will normally be evidenced by many of the
characteristics of issuers rated Prime-1 but to a lesser degree. Earnings trends
and coverage ratios, while sound, may be more subject to variation.
Capitalization characteristics, while still appropriate, may be more affected by
external conditions. Ample alternate liquidity is maintained.
STANDARD AND POOR'S CORPORATION
S&P's two highest commercial paper ratings are A-1 and A-2. Issues assigned an A
rating are regarded as having the greatest capacity for timely payment. Issues
in this category are delineated with the numbers 1, 2 and 3 to indicate the
relative degree of safety. An A-1 designation indicates that the degree of
safety regarding timely payment is either overwhelming or very strong. Those
issues determined to possess overwhelming safety characteristics are denoted
with a plus (+) sign designation. The capacity for timely payment on issues with
an A-2 designation is strong. However, the relative degree of safety is not as
high as for issues designated A-1. A-3 issues have a satisfactory capacity for
timely payment. They are, however, somewhat more vulnerable to the adverse
effects of changes in circumstances than obligations carrying the higher
designations. Issues rated A-2 are regarded as having only an adequate capacity
for timely payment. However, such capacity may be damaged by changing conditions
or short-term adversities.
FITCH IBCA, INC.
Fitch's short-term ratings apply to debt obligations that are payable on demand
or have original maturities of generally up to three years, including commercial
paper, certificates of deposit, medium-term notes, and municipal and investment
notes.
F-1+. Issues assigned this rating are regarded as having the strongest degree of
assurance for timely payment.
F-1. Issues assigned this rating reflect an assurance of timely payment only
slightly less in degree than issues rated F-1+.
<PAGE>
APPENDIX B
GLOSSARY OF INVESTMENT TERMS
This glossary describes some of the types of securities and other obligations in
which a Fund (or Portfolio) may invest. Although the descriptions refer to
Portfolios only, the descriptions apply also to investments by the Funds. The
Funds (and Portfolios) are not limited to the securities and obligations listed
below, and may invest in the securities and other obligations described below
and in other types of securities and obligations to the extent permitted by its
investment objectives and policies. Refer to the SAI for a more detailed
discussion of the Funds' investment policies and these and other securities and
obligations in which the Funds (and Portfolios) may invest.
EQUITY AND RELATED SECURITIES
Ca represents a share of ownership in a company, and usually carries
voting rights and may earn dividends. Common stockholders are not creditors of
the company, but rather, upon liquidation of the company, are entitled to their
pro rata share of the company's assets after creditors (including holders of
debt securities) and, if applicable, preferred stockholders, are paid. Unlike
preferred stock, dividends on common stock are not fixed but are declared at the
discretion of the issuer.
Ca are preferred stocks or bonds that are convertible into
common stock at a specified price or conversion ratio within a specific amount
of time.
Da are receipts for shares of a foreign-based company that
entitle the holder to dividends and capital gain on the underlying security.
Receipts include those issued by domestic banks (American Depository Receipts
("ADRs"), foreign financial institutions (Global or European Depository
Receipts) and broker-dealers (depository shares). Unsponsored ADRs may be
created without the participation of the foreign issuer. Holders of these ADRs
generally bear all the costs of the ADR facility, whereas foreign issuers
typically bear certain costs in a sponsored ADR. The depository of an
unsponsored ADR may be under no obligation to distribute shareholder
communications received from the foreign issuer or to pass through voting
rights.
Pa is a class of stock that generally pays dividends at a specified
rate and has preference over common stock in the payment of dividends and
liquidation. A preferred stockholder generally is a shareholder in the company
and not a creditor of the company. Preferred stock generally does not carry
voting rights.
Wa are securities, typically issued with preferred stocks or bonds, that
give the holder the right to buy a proportionate amount of common stock at a
specified price, usually at a price that is higher than the market price at the
time of issuance of the warrant. The right may last for a specified period or
indefinitely. The specified price for warrants usually represents a premium over
the applicable market value of the underlying equity security at the time of the
warrant's issuance.
DEBT AND RELATED INVESTMENTS
a are debt securities issued by a corporation
or other business entity, municipality, government or government agency. Bills
usually have the shortest maturities and bonds the longest maturities. The
issuer is required to pay the holder the face or principal amount of the loan at
a specified maturity and, except for zero coupon securities, to make scheduled
interest payments during the term of the securities.
COMMERCIAL PAPER is a short-term debt obligation with a maturity ranging from 1
to 270 days issued by banks, corporations and other borrowers.
COLLATERALIZED MORTGAGE OBLIGATIONS ("CMOS") are debt obligations that are
collateralized by mortgages or mortgage pass-through securities ("Mortgage
Assets"). Payments of principal and interest on the Mortgage Assets are passed
through to the holders of the CMOs on the same schedule as they are received,
although, certain classes (often referred to as tranches) of CMOs may have
priority over other classes with respect to the receipt of payments. CMOs may
have complicated structures and generally involve more risks than less complex
mortgage-related securities.
<PAGE>
DEMAND NOTES are unsecured obligations redeemable upon a specified number of
days' notice (typically not more than 30 days). These obligations include master
demand notes that permit investment of fluctuating amounts at varying rates of
interest pursuant to direct arrangement with the issuer of the instrument. The
issuers of these obligations often have the right, after a given period, to
prepay the outstanding principal amount of the obligations upon a specified
number of days' notice. These obligations generally are not traded, nor
generally is there an established secondary market for them. Although a
purchaser of a demand note would generally not be able to resell a master demand
note to a third party, the purchaser is entitled to demand payment from the
issuer at any time in accordance with the note's notice provisions.
FIXED-INCOME SECURITIES are securities that pay a specified rate of return. The
term generally includes securities of all maturities (for instance, bills, notes
and bonds), securities on which interest or dividend payments are made before
maturity and zero coupon securities, and securities of various issuers (for
instance, corporate instruments, municipal securities and U.S. Government
Securities) that pay a specified rate of interest for a specified period of
time. The term also can include preferred stock, which pays fixed-dividends.
Coupon, discount and dividend rates usually are fixed for the term of a
security, but can provide for an increase or decrease in rate during the term of
the security.
GUARANTEED INVESTMENT CONTRACTS are arrangements with an insurance companies
under which the purchaser of the contract contributes cash to the insurance
company's general account and the insurance company credits the contribution
with interest on a monthly basis. The interest rate may be fixed or tied to a
specified market index, and the principal and interest are guaranteed by the
insurance company.
HIGH-YIELD/HIGH-RISK SECURITIES are securities that are rated below investment
grade by an NRSRO (i.e., "BB" or lower by S&P's and "Ba" or lower by Moody's).
Other terms commonly used to describe these securities include "lower rated
bonds," "non-investment grade bonds" and "junk bonds." These securities have
speculative or predominantly speculative characteristics.
MORTGAGE-RELATED AND ASSET-BACKED SECURITIES are shares in a pool of mortgages
or other debt. These securities are generally pass-through securities, which
means that principal and interest payments on the underlying securities (less
servicing fees) are passed through to securityholders on a pro rata basis. These
securities involve prepayment risk, which is the risk that during periods of
declining interest rates, the underlying mortgages or other debt may be
refinanced or paid off prior to their maturities, leaving the holder unable to
reinvest the prepaid amount at an interest rate comparable to the rate on the
prepaid securities.
PARTICIPATION INTERESTS are interests in municipal securities that are owned by
banks or other financial institutions. Participation interests usually carry a
demand feature backed by a letter of credit or guarantee of the bank or
institution permitting the holder to tender the participation interests back to
the bank or other institution.
REVERSE REPURCHASE AGREEMENTS involve the sale of a security by a Portfolio to
another party (generally a bank or dealer) in return for cash and an agreement
by the Portfolio to buy the security back at a specified price and time. This
technique is similar to borrowing.
SECURITY LOANS occur when the holder of a security lends it and receives a fee
from the borrower or is able to retain interest from investing cash collateral
deposited by the borrower. The lender may pay fees to arrange securities loans.
Security loans involve the risk that the borrower will fail to return the
borrowed security. In that case, the lender bears the risk of market value
fluctuations until the security is returned or collateral can be liquidated and
the proceeds (which may not cover the effects of fluctuations and the lenders
costs) used to replace the unreturned securities.
VARIABLE AND FLOATING RATE SECURITIES are securities that have variable or
floating rates of interest that are adjusted periodically according to a
specified formula, usually with reference to some interest rate index or market
interest rate. In certain limited circumstances, adjustments in a security
interest rate may affect the amount of principal paid at maturity. The
adjustable rate tends to decrease the security's price sensitivity to changes in
interest rates.
<PAGE>
ZERO COUPON SECURITIES are debt securities that are issued at a discount from
face value and do not pay interest prior to maturity. The discount approximates
the total amount of interest the security will accrue from the date of issuance
to maturity. The market value of these securities generally fluctuates more in
response to changes in interest rates than securities of comparable quality and
maturity that pay interest during their term. Holders of a zero-coupon security
with a term of more than a year must treat a portion of the discount of the
security as income on the purchase price paid for the security. As the Funds
distribute all of their net investment income, a Portfolio may have to sell
portfolio securities to distribute the income resulting from this treatment,
which may result in a taxable gain or loss and occur at a time when the
investment adviser would not otherwise have chosen to sell the securities.
OTHER INVESTMENT TERMS AND TECHNIQUES
DOLLAR ROLL TRANSACTIONS occur when a Portfolio sells fixed income securities,
typically mortgage-related securities, and makes a commitment to purchase
similar, but not identical, securities at a later date from the party to whom
the original securities were sold. Like a forward commitment, during the roll
period no payment is made for the securities purchased and no interest or
principal payments on the security accrue to the Portfolio but it assumes the
risk of ownership. A Portfolio is compensated for entering into dollar roll
transactions by the difference between the current sales price and the price for
the future purchase, as well as by the interest earned on the cash proceeds of
the initial sale. Like other forward commitments, dollar roll transactions
involve the risk that the market value of the securities to be purchased by the
Portfolio may decline below the price at which the Portfolio sold the original
securities. Also, if the buyer of the original securities under a dollar roll
transaction becomes insolvent, the Portfolio's use of the proceeds of the
transaction may be restricted pending a determination by the other buyer, or its
trustee or receiver, whether to enforce the Portfolio's obligation to repurchase
the securities, which may have increased a market value on the price at which
the original securities were sold.
MARKET CAPITALIZATION refers to the value of an issuer's outstanding stock and
is calculated by multiplying the total number of common shares outstanding by
the market price per share of the stock.
RULE 144A SECURITIES are securities that are not registered for sale to the
general public and may be resold only to certain types of institutional
investors. Because of the restrictions on their resale, these securities may be
difficult to resell at the same price as comparable non-restricted securities.
SHORT SALES AGAINST-THE-BOX occur when a Portfolio contemporaneously owns or has
the right to obtain at no added cost securities identical to securities which
the Portfolio has borrowed and sold, otherwise referred to as "sold short." For
federal income tax purposes, short sales against-the-box may in certain cases be
made to defer recognition of gain or loss on the sale of securities until the
short position is closed out. Under recently enacted legislation, if a Portfolio
has unrealized gain on securities it owns and sells identical securities short
against-the-box, the Portfolio generally will be deemed to have sold the long
position for tax purposes and thus will recognize gain.
WHEN-ISSUED, DELAYED DELIVERY and FORWARD TRANSACTIONS generally involve the
purchase of a security under an agreement to make payment and accept delivery at
some time in the future, (i.e., beyond the normal period of securities
settlement). A Portfolio does not earn interest on such securities until
settlement but bears the risk of market value fluctuations between the purchase
and settlement dates. New issues of stocks and bonds, private placements and
U.S. Government Securities may be sold in this manner.
CERTIFICATES OF PARTICIPATION are certificates representing an interest in a
pool of securities. Holders are entitled to a proportionate interest in the
underlying securities.
FUTURES, OPTIONS AND OTHER DERIVATIVES
FORWARD CONTRACTS are contracts to purchase or sell a specified amount of
property for an agreed upon price at a specified time. Forward contracts
generally are not exchange traded and are typically negotiated on an individual
basis. The Portfolios may enter into forward currency contracts to hedge against
declines in the value of securities denominated in, or whose value is tied to, a
currency other than the U.S. dollar or to reduce the impact of currency
<PAGE>
appreciation on future purchases of such securities. Portfolios may also enter
into forward contracts to purchase or sell securities indices or other financial
indices.
FUTURES CONTRACTS are contracts that obligate the buyer to receive and the
seller to deliver a commodity at a specified price on a specified date. The
Portfolio may buy and sell futures contracts on foreign currencies, securities
indices and financial indices, including interest rates or an index of U.S.
government, foreign government, equity or fixed-income securities. The
Portfolios may also buy options on futures contracts. An option on a futures
contract gives the buyer the right, but not the obligation, to buy or sell a
futures contract at a specified price on or before a specified date. Futures
contracts and options on futures contracts are standardized and traded on
exchanges.
INDEXED/STRUCTURED SECURITIES are typically short-to-intermediate-term debt
securities whose value at maturity or interest rate is linked to currencies,
interest rates, securities, indices, commodity prices or other financial
indices. These securities may be positively or negatively indexed (i.e., their
value may increase or decrease based on a movement in the price of the linked
component). Indexed/structured securities may have return characteristics
similar to direct investments in the linked component and may be more volatile
than a direct investment in the linked component. These investments may be
difficult to resell and a purchaser bears both the market risk of an investment
in the linked component and the credit risk of the issuer.
INVERSE FLOATERS, a type of indexed/structured security, are variable or
floating rate securities that pay interest at a rate that varies inversely with
movements in prevailing short-term interest rates. Upon reset of the interest
rate payable on an inverse floater, its interest rate may decrease if the linked
interest rate increases. When short-term interest rates are relatively low
compared to long-term interest rates, a Portfolio may attempt to enhance its
yield by purchasing inverse floaters. Certain inverse floaters may have an
interest rate reset mechanism that multiplies the effects of changes in the
underlying index. This form of leverage may have the effect of increasing the
volatility of the security's market value while increasing the security's,
potential yield. These investments may be difficult to resell and a purchaser
bears both the market risk of the investment and the credit risk of the issuer.
OPTIONS are the right, but not the obligation, to buy or sell a specified amount
of securities or other assets on or before a fixed date at a predetermined
price. Options may have standardized terms and be traded as exchanges or may be
tailor-made and difficult to resell. The Portfolio may purchase and write put
and call options on securities, securities indices and foreign currencies. A
purchaser of a non-standardized option is subject both to market risk and the
credit risk of the issuer.
SWAP AGREEMENTS include interest rate and mortgage (or other asset) swap
agreements. In a typical interest rate swap agreement, one party agrees to make
regular payments equal to a floating interest rate on a specified amount (the
"notional principal amount") in return for payments equal to a fixed interest
rate on the same amount for a specified period. Mortgage swap agreements are
similar to interest rate swap agreements, except that the notional principal
amount is tied to a reference pool of mortgages. In a cap or floor, one party
agrees, usually in return for a fee, to make payments under particular
circumstances. For example, the purchaser of an interest rate cap has the right
to receive payments to the extent a specified interest rate exceeds an agreed
upon level; the purchaser of an interest rate floor has the right to receive
payments to the extent a specified interest rate falls below an agreed upon
level. A collar entitles the purchaser to receive payments to the extent a
specified interest rate falls outside an agreed upon range. Swap agreements may
involve leverage and may be highly volatile; depending on how they are used,
they may have a substantial impact on a Portfolio's performance. Swap agreements
expose a Portfolio to movements in the relative value of the obligations being
swapped, to the credit risk of the counterparties and to the Portfolio's ability
to terminate its swap agreements or reduce its exposure to them through
offsetting transactions.
<PAGE>
PART C
OTHER INFORMATION
ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial statements.
Included in the Prospectuses:
Not applicable to this filing.
Included in the Statements of Additional Information:
Not applicable to this filing.
(b) Exhibits.
(1) Trust Instrument of Registrant as amended and
restated August 4, 1997 (see Note 1).
(2) By-Laws of Registrant as now in effect (see Note 2).
(3) Not Applicable.
(4) Specimen Certificate for shares of beneficial
interest of each class of each portfolio of
Registrant. Except for the names of the classes of
shares and CUSIP numbers, the certificate of each
class of each portfolio of Registrant is
substantially the same as the specimen certificate,
and therefore, is omitted pursuant to Rule 483(d)(2)
under the 1933 Act (see Note 2).
(5) (a) Form of Investment Advisory Agreement
between Registrant and Norwest Investment
Management, Inc. ("NIM") relating to Cash
Investment Fund, Ready Cash Investment Fund,
U.S. Government Fund, Treasury Fund,
Treasury Plus Fund, Municipal Money Market
Fund, Stable Income Fund, Limited Term
Government Income Fund, Intermediate
Government Income Fund, Diversified Bond
Fund, Income Fund, Total Return Bond Fund,
Strategic Income Fund, Limited Term Tax-Free
Fund, Tax-Free Income Fund, Colorado Tax-
Free Fund, Minnesota Intermediate Tax-Free
Fund, Minnesota Tax-Free Fund, Moderate
Balanced Fund, Growth Balanced Fund,
Aggressive Balanced-Equity Fund, Index Fund,
Income Equity Fund, ValuGrowthSM Stock Fund,
Diversified Equity Fund, Growth Equity Fund,
Large Company Growth Fund, Diversified Small
Cap Fund, Small Company Stock Fund, Small
Cap Opportunities Fund, Small Company Growth
Fund, Contrarian Stock Fund, International
Fund, Performa Strategic Value Bond Fund,
Performa Disciplined Growth Fund, Performa
Small Cap Value Fund, Performa Global Growth
Fund, WealthBuilder II Growth Portfolio,
WealthBuilder II Growth and Income Portfolio
and WealthBuilder II Growth Portfolio,.
Except for the names of each series of
Registrant, the Investment Advisory
Agreement of each series of the Registrant
is substantially the same as the Investment
Advisory Agreement, and therefore, is
omitted pursuant to Rule 483(d)(2) under the
1933 Act (see Note 3).
(b) Form of Investment Subadvisory Agreement
between Registrant and Crestone Capital
Management Inc. relating to Small Company
Stock Fund, Strategic Income Fund, Moderate
Balanced Fund, Growth Balanced Fund,
Diversified Equity Fund and Growth Equity
Fund dated as of June 1, 1997 (see Note 2).
<PAGE>
(c) Investment Subadvisory Agreement between
Registrant and Schroder Capital Management
Inc. relating to Strategic Income Fund,
Moderate Balanced Fund, Growth Balanced
Fund, Diversified Equity Fund, Growth Equity
Fund and International Fund dated as of
November 11, 1994 (see Note 2).
(d) Form of Investment Subadvisory Agreement
between Registrant and Schroder Capital
Management International Inc. relating to
Small Cap Opportunities Fund dated as of
April 28, 1996 (see Note 4).
(e) Form of Investment Subadvisory Agreement
between Registrant and Galliard Capital
Management International Inc. relating to
Stable Income Fund, Performa Strategic Value
Bond Fund, Diversified Bond Fund, Strategic
Income Fund, Moderate Balanced Fund, Growth
Balanced Fund and Aggressive Balanced-Equity
Fund dated as of June 1, 1997 (see Note 3).
(f) Form of Investment Subadvisory Agreement
between Registrant and Peregrine Capital
Management International Inc. relating to
Small Company Growth Fund, Large Company
Growth Fund, Growth Balanced Fund, Moderate
Balanced Fund, Strategic Income Fund, Growth
Equity Fund, Diversified Equity Fund and
Diversified Bond Fund dated as of June 1,
1997 (see Note 3).
(g) Form of Investment Subadvisory Agreement
between Registrant and United Capital
Management relating to Total Return Bond
Fund and Contrarian Stock Fund dated as of
June 1, 1997 (see Note 3).
(h) Form of Investment Subadvisory Agreement
between Registrant and Smith Asset
Management Group, LP relating to Performa
Disciplined Growth Fund, Performa Small Cap
Value Fund, Growth Equity Fund, Diversified
Equity Fund, Aggressive Balanced-Equity
Fund, Growth Balanced Fund, Moderate
Balanced Fund, Strategic Income Fund and
Diversified Small Cap Fund dated as of
October 1, 1997 (see Note 1).
(6) Distribution Services Agreement between Registrant
and Forum Financial Services, Inc. relating to each
portfolio of Registrant dated as of October 1, 1995,
as amended January 29, 1996 (see Note 2).
(7) Not Applicable.
(8) (a) Custodian Agreement between Registrant and
Norwest Bank Minnesota, N.A. dated as of
August 1, 1993, as amended November 11, 1994
(see Note 2).
(b) Transfer Agency Agreement between Registrant
and Norwest Bank Minnesota, N.A. dated as of
August 1, 1993 and restated as of December
8, 1993 (see Note 2).0
(9) (a) Form of Management Agreement between
Registrant and Forum Financial Services,
Inc. relating to each portfolio of
Registrant dated as August 1, 1997 (see Note
4).
(b) Form of Fund Accounting Agreement between
Registrant and Forum Accounting Services,
LLC dated as of June 1, 1997 (see Note 4).
(c) Administration Services Agreement between
Registrant and Norwest Bank Minnesota, N.A.
relating to International Fund and Small Cap
Opportunities Fund dated as of November 11,
1994, as amended April 27, 1996 (see Note
2).
<PAGE>
(d) Administration Agreement between Registrant
and Forum Administrative Services, LLC
relating to Cash Investment Fund, U.S.
Government Fund, Treasury Fund, Municipal
Money Market Fund - institutional Shares,
Municipal Money Market Fund - Investor
Shares, Ready Cash Investment Fund,
Intermediate Government Income Fund,
Diversified Bond Fund, Stable Income Fund,
Income Fund, Total Return Bond Fund, Limited
Term Tax-Free Fund, Limited Term Government
Income Fund, Tax-Free Income Fund, Colorado
Tax-Free Fund, Minnesota Intermediate Tax-
Free Fund, Minnesota Tax-Free Fund,
Strategic Income Fund, Moderate Balanced
Fund, Growth Balanced Fund, Aggressive
Balanced-Equity Fund, Income Equity Fund,
Index Fund, ValuGrowth SM Stock Fund,
Diversified Equity Fund, Growth Equity Fund,
Large Company Growth Fund, Diversified Small
Cap Fund, Small Company Growth Fund, Small
Company Stock Fund, Small Cap Opportunities
Fund, Contrarian Stock Fund, International
Fund, Performa Strategic Value Bond Fund,
Performa Disciplined Growth Fund, Performa
Small Cap Value Fund, Performa Global Growth
Fund, Norwest WealthBuilder II Growth
Portfolio, Norwest WealthBuilder II Growth
and Income Portfolio and Norwest
WealthBuilder II Growth Balanced Portfolio
dated as of October 1, 1996 and amended
January 26, 1998 (see Note 5).
(10) (a) Opinion of Seward & Kissel (see Note 6).
(b) Opinion of Seward & Kissel (see Note 2).
(11) Not Applicable.
(12) Not Applicable.
(13) Investment Representation letter of John Y. Keffer as
original purchaser of shares of stock of Registrant
(see Note 6).
(14) Individual Retirement Account materials (see Note 7).
(15) Rule 12b-1 Plan adopted by Registrant relating to
Exchange Shares of Ready Cash Investment Fund and
Investor B Shares of Stable Income Fund, Intermediate
Government Fund, Income Fund, Total Return Bond Fund,
Tax-Free Income Fund, Colorado Tax-Free Fund,
Minnesota Tax-Free Fund, Income Equity Fund,
ValuGrowthSM Stock Fund, Diversified Equity Fund,
Growth Equity Fund, Small Company Stock Fund, Small
Company Growth Fund, Small Cap Opportunities Fund and
International Fund (see Note 2).
(16) Schedules for computation of each Performance
Quotation provided in the Registration Statement in
response to Item 22 relating to (see Note 8):
<TABLE>
<S> <C> <C> <C> <C> <C>
Series Share
Class(es)
Cash Investment Fund Shares
Ready Cash Investment Fund Investor Shares Exchange Class
U.S. Government Fund Shares
Treasury Fund Shares
Treasury Plus Fund Shares
Municipal Money Market Fund Investor Shares Institutional Shares
Stable Income Fund A Shares B Shares I Shares
Limited Term Government Income Fund I Shares
Intermediate Government Income Fund A Shares B Shares I Shares
Diversified Bond Fund I Shares
Income Fund A Shares B Shares I Shares
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C>
Total Return Bond Fund A Shares B Shares I Shares
Limited Term Tax-Free Fund I Shares
Tax-Free Income Fund A Shares B Shares I Shares
Colorado Tax-Free Fund A Shares B Shares I Shares
Minnesota Intermediate Tax-Free Fund I Shares
Minnesota Tax-Free Fund A Shares B Shares I Shares
Strategic Income Fund I Shares
Moderate Balanced Fund I Shares
Growth Balanced Fund I Shares
Aggressive Balanced-Equity Fund I Shares
Index Fund I Shares
Income Equity Fund A Shares B Shares I Shares
ValuGrowthSM Stock Fund A Shares B Shares I Shares
Diversified Equity Fund A Shares B Shares I Shares
Growth Equity Fund A Shares B Shares I Shares
Large Company Growth Fund I Shares
Diversified Small Cap Fund I Shares
Small Company Stock Fund A Shares B Shares I Shares
Small Company Growth Fund I Shares
Small Cap Opportunities Fund A Shares B Shares I Shares
Contrarian Stock Fund A Shares B Shares I Shares
International Fund A Shares B Shares I Shares
WealthBuilder II Growth Portfolio C Shares
WealthBuilder II Growth and Income Portfolio C Shares
WealthBuilder II Growth Balanced Portfolio C Shares
Performa Disciplined Growth Fund Shares
Performa Small Cap Value Fund Shares
Performa Strategic Value Bond Fund Shares
Performa Global Fund Shares
</TABLE>
(17) Financial Data Schedules (filed herewith).
(18) Multiclass (Rule 18f-3) Plan adopted by Registrant (see
Note 5).
Other Exhibits
(A) Power of Attorney from James C. Harris, Trustee of Registrant (see
Note 2).
(B) Power of Attorney from Richard M. Leach, Trustee of Registrant (see
Note 2).
(C) Power of Attorney from Robert C. Brown, Trustee of Registrant (see
Note 2).
(D) Power of Attorney from Donald H. Burkhardt, Trustee of Registrant
(see Note 2).
(E) Power of Attorney from John Y. Keffer, Trustee of Registrant (see
Note 2).
(F) Power of Attorney from Donald C. Willeke, Trustee of Registrant
(see Note 2).
(G) Power of Attorney from Timothy J. Penny, Trustee of Registrant (see
Note 2).
(H) Power of Attorney from John S. McCune, Trustee of Registrant (see
Note 1).
-------------
Note: (1) Exhibit incorporated by reference as filed in PEA No. 46 via
EDGAR on September 30, 1997, accession number
0000912057-97-032214.
<PAGE>
(2) Exhibit incorporated by reference as filed in PEA No. 35 via
EDGAR on March 8, 1996, accession number 0000912057-96-004243.
(3) Exhibit incorporated by reference as filed in PEA No. 43 via
EDGAR on July 16, 1997, accession number 0000912057-97-024361.
(4) Exhibit incorporated by reference as filed in PEA No. 54 via
EDGAR on May 6, 1998, accession number 0001004402-98-000281.
(5) Exhibit incorporated by reference as filed in PEA No. 55 via
EDGAR on July 31, 1998, accession number 0001004402-98-000418.
(6) Exhibit incorporated by reference as filed in PreEA No. 2 on
December 31, 1986.
(7) Exhibit incorporated by reference as filed in PEA No. 24 on
April 22, 1994.
(8) Exhibit incorporated by reference as filed in PEA No. 42 via
EDGAR on June 2, 1997, accession number 0000912057-97-019290.
ITEM 25. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH REGISTRANT
None.
ITEM 26. NUMBER OF HOLDERS OF SECURITIES
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Title of Class Of Unit Number of Recordholders
of Beneficial Interest as of June 30, 1998
---------------------- -------------------
Investor Exchange Institutional
Shares A Shares B Shares I Shares Shares Shares Shares C Shares
------ -------- -------- -------- ------ ------ ------ --------
Cash Investment Fund 74 N/A N/A N/A N/A N/A N/A N/A
Ready Cash Investment Fund N/A N/A N/A N/A 193 24 N/A N/A
U.S. Government Fund 39 N/A N/A N/A N/A N/A N/A N/A
Treasury Fund 32 N/A N/A N/A N/A N/A N/A N/A
Treasury Plus Fund 0 N/A N/A N/A N/A N/A N/A N/A
Municipal Money Market Fund N/A N/A N/A N/A 19 N/A 27 N/A
Stable Income Fund N/A 112 74 341 N/A N/A N/A N/A
Limited Term Government
Income Fund N/A N/A N/A 1329 N/A N/A N/A N/A
Intermediate Government N/A 45 451 112 N/A N/A N/A N/A
Income Fund
Diversified Bond Fund N/A N/A N/A 152 N/A N/A N/A N/A
Income Fund N/A 55 372 3191 N/A N/A N/A N/A
Total Return Bond Fund N/A 108 216 381 N/A N/A N/A N/A
Limited Term Tax-Free Fund N/A N/A N/A 382 N/A N/A N/A N/A
Tax-Free Income Fund N/A 65 292 1420 N/A N/A N/A N/A
Colorado Tax-Free Fund N/A 73 207 17 N/A N/A N/A N/A
Minnesota Intermediate N/A N/A N/A 1376 N/A N/A N/A N/A
Tax-Free Fund
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
Title of Class Of Unit Number of Recordholders
of Beneficial Interest as of June 30, 1998
---------------------- -------------------
Investor Exchange Institutional
Shares A Shares B Shares I Shares Shares Shares Shares C Shares
------ --------- -------- --------- ------ ------ ------- ---------
Minnesota Tax-Free Fund N/A 551 457 185 N/A N/A N/A N/A
Strategic Income Fund N/A N/A N/A 192 N/A N/A N/A N/A
Moderate Balanced Fund N/A N/A N/A 509 N/A N/A N/A N/A
Growth Balanced Fund N/A N/A N/A 678 N/A N/A N/A N/A
Aggressive N/A N/A N/A 25 N/A N/A N/A N/A
Balanced-Equity
Fund
Index Fund N/A N/A N/A 560 N/A N/A N/A N/A
Income Equity Fund N/A 4505 5124 504 N/A N/A N/A N/A
ValuGrowthSM Stock Fund N/A 672 862 68 N/A N/A N/A N/A
Diversified Equity Fund N/A 4567 6835 966 N/A N/A N/A N/A
Growth Equity Fund N/A 1358 1892 823 N/A N/A N/A N/A
Large Company Growth Fund N/A N/A N/A 355 N/A N/A N/A N/A
Diversified Small Cap N/A N/A N/A 16 N/A N/A N/A N/A
Fund
Small Company Stock Fund N/A 768 729 234 N/A N/A N/A N/A
Small Company Growth Fund N/A N/A N/A 155 N/A N/A N/A N/A
Small Cap Opportunities
Fund N/A 1065 1171 240 N/A N/A N/A N/A
Contrarian Stock Fund N/A 0 0 49 N/A N/A N/A N/A
International Fund N/A 84 261 213 N/A N/A N/A N/A
Norwest WealthBuilder II N/A N/A N/A N/A N/A N/A N/A 106
Growth Portfolio
Norwest WealthBuilder II N/A N/A N/A N/A N/A N/A N/A 156
Growth and Income
Portfolio
Norwest WealthBuilder II N/A N/A N/A N/A N/A N/A N/A 156
Growth Balanced Portfolio
Norwest Performa 17 N/A N/A N/A N/A N/A N/A N/A
Disciplined Growth Fund
Norwest Performa Small 14 N/A N/A N/A N/A N/A N/A N/A
Cap Value Fund
Performa Strategic Value 9 N/A N/A N/A N/A N/A N/A N/A
Bond Fund
Performa Global Growth 12 N/A N/A N/A N/A N/A N/A N/A
Fund
</TABLE>
<PAGE>
ITEM 27. INDEMNIFICATION
The general effect of Section 10.02 of Registrant's Trust Instrument is
to indemnify existing or former trustees and officers of the Trust to
the fullest extent permitted by law against liability and expenses.
There is no indemnification if, among other things, any such person is
adjudicated liable to Registrant or its shareholders by reason of
willful misfeasance, bad faith, gross negligence or reckless disregard
of the duties involved in the conduct of his office. This description
is modified in its entirety by the provisions of Section 10.02 of
Registrant's Trust Instrument contained in this Registration Statement
as Exhibit 1 and incorporated herein by reference.
Registrant's Investment Advisory Agreements, Investment Subadvisory
Agreements and Distribution Services Agreements provide that
Registrant's investment advisers and principal underwriter are
protected against liability to the extent permitted by Section 17(i) of
the Investment Company Act of 1940. Similar provisions are contained in
the Management Agreement and Transfer Agency and Fund Accounting
Agreement. Registrant's principal underwriter is also provided with
indemnification against various liabilities and expenses under the
Management and Distribution Agreements and Distribution Services
Agreements between Registrant and the principal underwriter; provided,
however, that in no event shall the indemnification provision be
construed as to protect the principal underwriter against any liability
to Registrant or its security holders to which the principal
underwriter would otherwise be subject by reason of willful
misfeasance, bad faith, or gross negligence in the performance of its
duties, or by reason of its reckless disregard of its obligations and
duties under those agreements. Registrant's transfer agent and fund
accountant and certain related individuals are also provided with
indemnification against various liabilities and expenses under the
Transfer Agency and Fund Accounting Agreements between Registrant and
the transfer agent and fund accountant; provided, however, that in no
event shall the transfer agent, fund accountant or such persons be
indemnified against any liability or expense that is the direct result
of willful misfeasance, bad faith or gross negligence by the transfer
agent or such persons.
The preceding paragraph is modified in its entirety by the provisions
of the Investment Advisory Agreements, Investment Subadvisory
Agreements, Distribution Services Agreements, Management Agreements,
Transfer Agency Agreement and Fund Accounting Agreement of Registrant
filed as Exhibits 5, 6, and 9 to Registrant's Registration Statement
and incorporated herein by reference.
Insofar as indemnification for liability arising under the Securities
Act of 1933 may be permitted to trustees, officers and controlling
persons of Registrant pursuant to the foregoing provisions, or
otherwise, Registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against
public policy as expressed in the Act and is, therefore, unenforceable.
In the event that a claim for indemnification against such liabilities
(other than the payment by Registrant of expenses incurred or paid by a
trustee, officer or controlling person of Registrant in the successful
defense of any action, suit or proceeding) is asserted by such trustee,
officer or controlling person in connection with the securities being
registered, Registrant will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such indemnification by
it is against public policy as expressed in the Act and will be
governed by the final adjudication of such issue.
<PAGE>
ITEM 28. BUSINESS AND OTHER CONNECTIONS OF INVESTMENT ADVISER
(a) Norwest Investment Management, Inc.
The description of Norwest Investment Management, Inc., under the
caption "Management-Advisor" or Management of the Funds-Norwest
Investment Management" in each Prospectus and under the caption
"Management-Adviser" or "Management -Investment Advisory
Services-Norwest Investment Management" in each Statement of Additional
Information constituting Parts A and B, respectively, of this
Registration Statement is incorporated by reference herein.
The following are the directors and principal executive officers of
NIM, including their business connections which are of a substantial
nature. The address of Norwest Corporation, the parent of Norwest Bank
Minnesota, N.A. ("Norwest Bank"), which is the parent of NIM, is
Norwest Center, Sixth Street and Marquette Avenue, Minneapolis, MN
55479. Unless otherwise indicated below, the principal business address
of any company with which the directors and principal executive
officers are connected is also Sixth Street and Marquette Avenue,
Minneapolis, MN 55479.
<TABLE>
<S> <C> <C>
---------------------------------- ------------------------------------ ----------------------------------
Name Title Business Connection
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
P. Jay Kiedrowski Chairman, Chief Executive Officer, Norwest Investment Management,
President Inc.
------------------------------------ ----------------------------------
Executive Vice President, Employee Norwest Bank Minnesota, N.A.
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Director Crestone Capital Management, Inc.
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Chairman Galliard Capital Management, Inc.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
James W. Paulsen Senior Vice President, Chief Norwest Investment Management,
Investment Officer Inc.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Stephen P. Gianoli Senior Vice President, Chief Norwest Investment Management,
Executive Officer Inc.
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Director Crestone Capital Management, Inc.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
David S. Lunt Vice President, Senior Portfolio Norwest Investment Management,
Manager Inc.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Richard C. Villars Vice President, Senior Portfolio Norwest Investment Management,
Manager Inc.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Lee K. Chase Senior Vice President Norwest Investment Management,
Inc.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Andrew Owen Vice President Norwest Investment Management,
Inc.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Eileen A. Kuhry Investment Compliance Specialist Norwest Investment Management,
Inc.
---------------------------------- ------------------------------------ ----------------------------------
</TABLE>
<PAGE>
(b) Schroder Capital Management International Inc.
The description of Schroder Capital Management International Inc.
("SCMI") under the caption "Management of the Funds-Investment Advisory
Services-Schroder Capital Management International Inc." in the
Prospectus and "Management-Investment Advisory Services" in the
Statement of Additional Information relating to International Fund,
Diversified Equity Fund, Growth Equity Fund, Strategic Income Fund,
Moderate Balanced Fund and Growth Balanced Fund, constituting certain
of Parts A and B, respectively, of the Registration Statement, is
incorporated by reference herein.
The following are the directors and principal officers of SCMI,
including their business connections of a substantial nature. The
address of each company listed, unless otherwise noted, is 787 Seventh
Avenue, 34th Floor, New York, NY 10019. Schroder Capital Management
International Limited ("Schroder Ltd.") is a United Kingdom affiliate
of Schroder which provides investment management services to
international clients located principally in the United States.
<TABLE>
<S> <C> <C>
---------------------------------- ------------------------------------ ----------------------------------
Name Title Business Connection
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
David M. Salisbury Chairman, Director SCMI
------------------------------------ ----------------------------------
Chief Executive, Director Schroder Ltd.*
------------------------------------ ----------------------------------
Director Schroders plc.*
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Trustee and Officer Schroder Series Trust II
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Richard R. Foulkes Deputy Chairman, Director SCMI
------------------------------------ ----------------------------------
Deputy Chairman Schroder Ltd.*
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Officer Certain open end management
investment companies for which
SCMI and/or its affiliates
provide investment services
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
John A. Troiano Chief Executive, Director SCMI
------------------------------------
----------------------------------
Chief Executive, Director Schroder Ltd.*
------------------------------------ ----------------------------------
----------------------------------
Officer Certain open end management
investment companies for which
SCMI and/or its affiliates
provide investment services
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Sharon L. Haugh Executive Vice President, Director SCMI
----------------------------------
------------------------------------ ----------------------------------
Director, Chairman Schroder Fund Advisors Inc.
------------------------------------ ----------------------------------
Director Schroder Ltd.*
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Chairman, Director Schroder Capital Management Inc.
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Trustee Certain open end management
investment companies for which
SCMI and/or its affiliates
provide investment services
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Gavin D. L. Ralston Senior Vice President, Managing SCMI
Director
------------------------------------ ----------------------------------
Director Schroder Ltd.*
---------------------------------- ------------------------------------ ----------------------------------
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
---------------------------------- ------------------------------------ ----------------------------------
Name Title Business Connection
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Mark J. Smith Senior Vice President, Director SCMI
------------------------------------ ----------------------------------
Senior Vice President, Director Schroder Ltd.*
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Director Schroder Fund Advisors Inc.
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Trustee and Officer Certain open end management
investment companies for which
SCMI and/or its affiliates
provide investment services
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Robert G. Davy Senior Vice President, Director SCMI
------------------------------------ ----------------------------------
Director Schroder Ltd.*
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Officer Certain open end management
investment companies for which
SCMI and/or its affiliates
provide investment services
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Jane P. Lucas Senior Vice President, Director SCMI
------------------------------------ ----------------------------------
Director Schroder Fund Advisors Inc.
------------------------------------ ----------------------------------
Director Schroder Capital Management Inc.
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Officer Certain open end management
investment companies for which
SCMI and/or its affiliates
provide investment services
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
David R. Robertson Group Vice President SCMI
------------------------------------ ----------------------------------
Senior Vice President Schroder Fund Advisors Inc..
----------------------------------
------------------------------------
Director of Institutional Business Oppenheimer Funds, Inc.
resigned 2/98
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Michael M. Perlstein Senior Vice President, Director SCMI
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Senior Vice President, Director Schroder Ltd.*
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Managing Director MacKay Shields Financial
Corporation
resigned 11/96
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Louise Croset First Vice President, Director SCMI
------------------------------------ ----------------------------------
First Vice President Schroder Ltd.*
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Trustee and Officer Schroder Series Trust II
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Abdallah Nauphal Group Vice President, Director SCMI
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Group Vice President, Director Schroder Capital Management Inc.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Ellen B. Sullivan Group Vice President, Director SCMI
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Director Schroder Capital Management Inc.
---------------------------------- ------------------------------------ ----------------------------------
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
---------------------------------- ------------------------------------ ----------------------------------
Name Title Business Connection
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Catherine A. Mazza Group Vice President SCMI
------------------------------------ ----------------------------------
President, Director Schroder Fund Advisors Inc.
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Director Schroder Capital Management Inc.
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Trustee and Officer Certain open end management
investment companies for which
SCMI and/or its affiliates
provide investment services.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Heather Crighton First Vice President, Director SCMI
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
First Vice President, Director Schroder Ltd.*
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Fariba Talebi Group Vice President SCMI
------------------------------------ ----------------------------------
Director Schroder Capital Management Inc.
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Officer Certain open end management
investment companies for which
SCMI and/or its affiliates provide
investment services.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Ira Unschuld Group Vice President SCMI
------------------------------------ ----------------------------------
Officer Certain open end management
investment companies for
which SCMI and/or its affiliates
provide investment services.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Paul M. Morris Senior Vice President SCMI
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Director Schroder Capital Management Inc.
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Principal, Senior Portfolio Manager Weiss, Peck & Greer LLC
resigned 12/96
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Susan B. Kenneally First Vice President, Director SCMI
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
First Vice President, Director Schroder Ltd.*
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Jennifer A. Bonathan First Vice President, Director SCMI
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
First Vice President, Director Schroder Ltd.*
---------------------------------- ------------------------------------ ----------------------------------
</TABLE>
<PAGE>
*Schroder Ltd and Schroders plc. are located at 33 Gutter Lane, London EC2V 8AS,
United Kingdom.
(c) Crestone Capital Management, Inc.
The description of Crestone Capital Management, Inc. ("Crestone") under
the caption "Management-SubAdviser" in the Prospectus and
"Management-Adviser-SubAdviser-Small Company Stock Fund" in the
Statement of Additional Information relating to the Small Company Stock
Fund, constituting certain of Parts A and B, respectively, of the
Registration Statement, is incorporated by reference herein.
The following are the directors and principal executive officers of
Crestone, including their business connections which are of a
substantial nature. The address of Crestone is 7720 East Belleview
Avenue, Suite 220, Englewood Colorado 80111-2614 and, unless otherwise
indicated below, that address is the principal business address of any
company with which the directors and principal executive officers are
connected.
<PAGE>
<TABLE>
<S> <C> <C>
---------------------------------- ------------------------------------ ----------------------------------
Name (Address if Different) Title Business Connection
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Kirk McCown President, Director Crestone Capital Management, Inc.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
P. Jay Kiedrowski Director Crestone Capital Management, Inc.
------------------------------------ ----------------------------------
Sixth and Marquette Ave., Chairman, Chief Executive Officer, Norwest Investment Management,
Minneapolis, MN 55479 President Inc.
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Executive Vice President, Employee Norwest Bank Minnesota, N.A.
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Chairman Galliard Capital Management, Inc.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Stephen P. Gianoli Director Crestone Capital Management, Inc.
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Sixth and Marquette Ave., Senior Vice President, Chief Norwest Investment Management,
Minneapolis, MN 55479 Executive Officer Inc.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Susan Koonsman Director Crestone Capital Management, Inc.
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
1740 Broadway President Norwest Investments & Trust
Denver, CO 80274
---------------------------------- ------------------------------------ ----------------------------------
</TABLE>
(d) Peregrine Capital Management, Inc.
The description of Peregrine Capital Management, Inc. ("Peregrine")
under the caption "Management-SubAdviser" in the Prospectus and
"Management-Adviser-SubAdviser-Diversified Bond Fund, Strategic Income
Fund, Moderate Balanced Fund, Growth Balanced Fund, Diversified Equity
Fund, Growth Equity Fund, Large Company Growth Fund and Small Company
Growth Fund in the Statement of Additional Information relating to
Diversified Bond Fund, Strategic Income Fund, Moderate Balanced Fund,
Growth Balanced Fund, Diversified Equity Fund, Growth Equity Fund,
Large Company Growth Fund and Small Company Growth Fund, constituting
certain of Parts A and B, respectively, of the Registration Statement,
is incorporated by reference herein.
The following are the directors and principal executive officers of
Peregrine, including their business connections which are of a
substantial nature. The address of Peregrine is LaSalle Plaza, 800
LaSalle Avenue, Suite 1850, Minneapolis, Minnesota 55402 and, unless
otherwise indicated below, that address is the principal business
address of any company with which the directors and principal executive
officers are connected.
<TABLE>
<S> <C> <C>
---------------------------------- ------------------------------------ ----------------------------------
Name (Address if Different) Title Business Connection
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
James R. Campbell Director Peregrine Capital Management,
Inc.
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Sixth and Marquette Ave., President, Chief Executive Norwest Bank
Minneapolis, MN 55479-0116 Officer, Director
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Patricia D. Burns Senior Vice President Peregrine Capital Management,
Inc.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Tasso H. Coin Senior Vice President Peregrine Capital Management,
Inc.
---------------------------------- ------------------------------------ ----------------------------------
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
---------------------------------- ------------------------------------ ----------------------------------
Name Title Business Connection
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
John S. Dale Senior Vice President Peregrine Capital Management,
Inc.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Julie M. Gerend Senior Vice President Peregrine Capital Management,
Inc.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
William D. Giese Senior Vice President Peregrine Capital Management,
Inc.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Daniel J. Hagen Vice President Peregrine Capital Management,
Inc.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Ronald G. Hoffman Senior Vice President, Secretary Peregrine Capital Management,
Inc.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Frank T. Matthews Vice President Peregrine Capital Management,
Inc.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Jeannine McCormick Senior Vice President Peregrine Capital Management,
Inc.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Barbara K. McFadden Senior Vice President Peregrine Capital Management,
Inc.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Robert B. Mersky Chairman, President, Chief Peregrine Capital Management,
Executive Officer Inc.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Gary E. Nussbaum Senior Vice President Peregrine Capital Management,
Inc.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
James P. Ross Vice President Peregrine Capital Management,
Inc.
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Vice President Norwest Bank (prior to November,
1996)
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Jonathan L. Scharlau Assistant Vice President Peregrine Capital Management,
Inc.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Jay H. Strohmaier Senior Vice President Peregrine Capital Management,
Inc.
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Senior Vice President/Managed Voyageur Asset Management (prior
Accounts to September, 1996)
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Paul E. von Kuster Senior Vice President Peregrine Capital Management,
Inc.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Janelle M. Walter Assistant Vice President Peregrine Capital Management,
Inc.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Paul R. Wurm Senior Vice President Peregrine Capital Management,
Inc.
---------------------------------- ------------------------------------ ----------------------------------
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
---------------------------------- ------------------------------------ ----------------------------------
Name Title Business Connection
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
J. Daniel Vendermark Vice President Peregrine Capital Management,
Sixth and Marquette Avenue Inc.
Minneapolis, MN 55479-1013
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Albert J. Edwards Senior Vice President Peregrine Capital Management,
Inc.
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Vice President/Marketing U.S. Trust Company of California
(prior to June 9, 1997)
---------------------------------- ------------------------------------ ----------------------------------
</TABLE>
(e) Galliard Capital Management, Inc.
The description of Galliard Capital Management, Inc. ("Galliard") under
the caption "Management-SubAdviser" in the Prospectus and
"Management-Adviser-SubAdviser-Stable Income Fund, Diversified Bond
Fund, Strategic Income Fund, Moderate Balanced Fund and Growth Balanced
Fund" in the Statement of Additional Information relating to the Stable
Income Fund, Diversified Bond Fund, Strategic Income Fund, Moderate
Balanced Fund and Growth Balanced Fund", constituting certain of Parts
A and B, respectively, of the Registration Statement, is incorporated
by reference herein.
The following are the directors and principal executive officers of
Galliard, including their business connections which are of a
substantial nature. The address of Galliard is LaSalle Plaza, Suite
2060, 800 LaSalle Avenue, Minneapolis, Minnesota 55479 and, unless
otherwise indicated below, that address is the principal business
address of any company with which the directors and principal executive
officers are connected.
<TABLE>
<S> <C> <C>
---------------------------------- ------------------------------------ ----------------------------------
Name (Address if Different) Title Business Connection
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
P. Jay Kiedrowski Chairman Galliard Capital Management, Inc.
------------------------------------ ----------------------------------
Sixth and Marquette Ave., Chairman, Chief Executive Officer, Norwest Investment Management,
Minneapolis, MN 55479 President Inc.
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Executive Vice President, Employee Norwest Bank Minnesota, N.A.
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Director Crestone Capital Management, Inc.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Richard Merriam Principal, Senior Portfolio Manager Galliard Capital Management, Inc.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
John Caswell Principal, Senior Portfolio Manager Galliard Capital Management, Inc.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Karl Tourville Principal, Senior Portfolio Manager Galliard Capital Management, Inc.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Laura Gideon Senior Vice President of Marketing Galliard Capital Management, Inc.
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Leela Scattum Vice President of Operations Galliard Capital Management, Inc.
---------------------------------- ------------------------------------ ----------------------------------
</TABLE>
<PAGE>
(f) Smith Asset Management Group, L.P.
The description of Smith Asset Management Group, L.P. ("Smith") under
the caption "Management-SubAdviser" in the Prospectus and
"Management-Adviser-SubAdviser-Performa Disciplined Growth Fund and
Performa Small Cap Value Fund" in the Statement of Additional
Information relating to Performa Disciplined Growth Fund and Performa
Small Cap Value Fund", constituting certain of Parts A and B,
respectively, of the Registration Statement, is incorporated by
reference herein.
The following are the directors and principal executive officers of
Smith, including their business connections which are of a substantial
nature. The address of Smith is 300 Crescent Court, Suite 750, Dallas,
Texas 75201 and, unless otherwise indicated below, that address is the
principal business address of any company with which the directors and
principal executive officers are connected.
<TABLE>
<S> <C> <C>
---------------------------------- ------------------------------------ ----------------------------------
Name Title Business Connection
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Stephen S. Smith President, Chief Executive Officer Smith Asset Management Group
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Partner Discovery Management
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Stephen J. Summers Chief Operating Officer Smith Asset Management Group
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Partner Discovery Management
---------------------------------- ------------------------------------ ----------------------------------
---------------------------------- ------------------------------------ ----------------------------------
Sarah C. Castleman Vice President Smith Asset Management Group
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Partner Discovery Management
------------------------------------ ----------------------------------
------------------------------------ ----------------------------------
Assistant Vice President NationsBank (formerly)
---------------------------------- ------------------------------------ ----------------------------------
</TABLE>
ITEM 29. PRINCIPAL UNDERWRITERS
(a) Forum Financial Services, Inc., Registrant's underwriter,
serves as underwriter for the following investment companies
registered under the Investment Company Act of 1940, as
amended:
BT Alex Brown Funds The CRM Funds The Cutler Trust Forum
Funds Memorial Funds Monarch Funds Norwest Advantage Funds
Norwest Select Funds Sound Shore Fund, Inc.
(b) The following directors and officers of Forum Financial
Services, Inc. hold the following positions with Registrant.
Their business address is Two Portland Square, Portland, Maine
04101:
<TABLE>
<S> <C> <C>
-------------------- ---------------------------------- -------------------------------------
Name Position with Underwriter Position with Registrant
-------------------- ---------------------------------- -------------------------------------
-------------------- ---------------------------------- -------------------------------------
John Y. Keffer President Chairman, President
-------------------- ---------------------------------- -------------------------------------
David I. Goldstein Secretary Vice President and Secretary
-------------------- ---------------------------------- -------------------------------------
-------------------- ---------------------------------- -------------------------------------
Sara M. Morris Treasurer Vice President and Treasurer
-------------------- ---------------------------------- -------------------------------------
</TABLE>
(c) Not Applicable.
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS
The majority of accounts, books and other documents required to be
maintained by 31(a) of the Investment Company Act of 1940 and the Rules
thereunder are maintained at the offices of Forum Financial Services,
Inc. at Two Portland Square, Portland,
<PAGE>
Maine 04101, at Forum Shareholder Services, LLC, Two Portland Square,
Portland, Maine 04101 and Forum Administrative Services, LLC, Two
Portland Square, Portland, Maine 04101. The records required to be
maintained under Rule 31a-1(b)(1) with respect to journals of receipts
and deliveries of securities and receipts and disbursements of cash
are maintained at the offices of Registrant's custodian. The records
required to be maintained under Rule 31a-1(b)(5), (6) and (9) are
maintained at the offices of Registrant's investment advisers as
indicated in the various prospectuses constituting Part A of this
Registration Statement.
Additional records are maintained at the offices of Norwest Bank
Minnesota, N.A., 733 Marquette Avenue, Minneapolis, MN 55479-0040,
Registrant's custodian and transfer agent and at the offices of
Norwest Investment Management, Inc., Norwest Center, Sixth Street and
Marquette Avenue, Minneapolis, MN 55479, Registrant's investment
adviser.
ITEM 31. MANAGEMENT SERVICES
Not Applicable.
ITEM 32. UNDERTAKINGS
Registrant undertakes to furnish each person to whom a prospectus is
delivered with a copy of Registrant's latest annual report to
shareholders relating to the portfolio or class thereof to which the
prospectus relates upon request and without charge.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the Investment
Company Act of 1940, as amended, the Registrant has duly caused this amendment
to its Registration Statement to be signed on its behalf by the undersigned,
duly authorized in the City of Portland, and State of Maine on the 19th day of
August, 1998.
NORWEST ADVANTAGE FUNDS
By:/s/ John Y. Keffer
----------------------------
John Y. Keffer
President
Pursuant to the requirements of the Securities Act of 1933, this Registration
Statement has been signed below by the following persons on the 19th day of
August, 1998.
(a) Principle Executive Officer
/s/ John Y. Keffer
-----------------------------------
John Y. Keffer
Chairman and President
(b) Principle Financial and Accounting Officer
/s/ Sara M. Morris
-----------------------------------
Sara M. Morris
Treasurer
(c) A majority of the Trustees
/s/ John Y. Keffer
-----------------------------------
John Y. Keffer
Chairman
Robert C. Brown,* Trustee
Donald H. Burkhardt,* Trustee
James C. Harris,* Trustee
Richard M. Leach,* Trustee
Donald C. Willeke,* Trustee
Timothy J. Penny,* Trustee
John C. McCune,* Trustee
*By:/s/John Y. Keffer
----------------------------------
John Y. Keffer
Attorney in Fact
<PAGE>
SIGNATURES
On behalf of Core Trust (Delaware), being duly authorized, I have duly caused
this amendment to the Registration Statement of Norwest Advantage Funds to be
signed in the City of Portland, State of Maine on the 19th day of August, 1998.
Core Trust (Delaware)
By: /s/ John Y. Keffer
----------------------------
John Y. Keffer
President
This amendment to the Registration Statement of Norwest Advantage Funds has been
signed below by the following persons in the capacities indicated on the 19th
day of August, 1998.
(a) Principal Executive Officer
/s/ John Y. Keffer
----------------------------------
John Y. Keffer
Chairman and President
(b) Principal Financial and Accounting Officer
/s/ Sara M. Morris
----------------------------------
Sara M. Morris
Treasurer
(c) A Majority of the Trustees
/s/ John Y. Keffer
----------------------------------
John Y. Keffer
Chairman
J. Michael Parish,* Trustee
James C. Cheng,* Trustee
Costas Azariadis,* Trustee
*By: /s/ John Y. Keffer
----------------------------------
John Y. Keffer
Attorney in Fact
<PAGE>
SIGNATURES
On behalf of Schroder Capital Funds, being duly authorized, I have duly caused
this amendment to the Registration Statement of Norwest Advantage Funds, solely
with respect to Performa Global Growth Fund, a series of Norwest Advantage
Funds, to be signed in the City of New York, State of New York on the 21st day
of August, 1998.
SCHRODER CAPITAL FUNDS
By: /s/ Jane P. Lucas
------------------
Jane P. Lucas
Vice President
This amendment to the Registration Statement of Norwest Advantage Funds, solely
with respect to Performa Global Growth Fund, a series of Norwest Advantage
Funds, has been signed below by the following persons in the capacities
indicated on the 21st day of August, 1998.
Signatures Title
---------- -----
(a) Principal Executive Officer
MARK J. SMITH
*By: /s/ Thomas G. Sheehan President and Trustee
--------------------------
Thomas G. Sheehan
Attorney-in-Fact
(b) Principal Financial and
Accounting Officer
/s/ Fergal Cassidy Treasurer
-------------------------------
Fergal Cassidy
(c) Majority of the Trustees
PETER E. GUERNSEY* Trustee
JOHN I. HOWELL* Trustee
HERMANN C. SCHWAB* Trustee
CLARENCE F. MICHALIS* Trustee
MARK J. SMITH* Trustee
HON. DAVID N. DINKINS* Trustee
PETER S. KNIGHT* Trustee
SHARON L. HAUGH* Trustee
*By: Thomas G. Sheehan
----------------------------
Thomas G. Sheehan
Attorney-in-Fact
<PAGE>
INDEX TO EXHIBITS
EXHIBIT
(17) Financial Data Schedules.
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>010
<NAME>CASH INVESTMENT FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 4,697,500,057
<INVESTMENTS-AT-VALUE> 4,697,500,057
<RECEIVABLES> 2,454
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 4,697,502,511
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 11,684,354
<TOTAL-LIABILITIES> 11,684,354
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 4,687,724,506
<SHARES-COMMON-STOCK> 4,687,649,667
<SHARES-COMMON-PRIOR> 2,149,671,799
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 147,521
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 1,758,828
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 4,685,818,157
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 29,667,081
<OTHER-INCOME> 183,787,890
<EXPENSES-NET> 9,798,689
<NET-INVESTMENT-INCOME> 203,656,282
<REALIZED-GAINS-CURRENT> (53,352)
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 203,602,930
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 203,656,282
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 12,012,845,493
<NUMBER-OF-SHARES-REDEEMED> 9,588,965,206
<SHARES-REINVESTED> 114,097,582
<NET-CHANGE-IN-ASSETS> 2,537,924,517
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 147,522
<OVERDIST-NET-GAINS-PRIOR> 1,705,476
<GROSS-ADVISORY-FEES> 709,326
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 11,639,014
<AVERAGE-NET-ASSETS> 3,849,877,700
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .05
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .05
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .48
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>040
<NAME>TREASURY FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 964,447,325
<INVESTMENTS-AT-VALUE> 964,447,325
<RECEIVABLES> 480,733,370
<ASSETS-OTHER> 36,478
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,445,217,173
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 4,702,111
<TOTAL-LIABILITIES> 4,702,111
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,440,234,562
<SHARES-COMMON-STOCK> 1,440,233,278
<SHARES-COMMON-PRIOR> 1,003,773,077
<ACCUMULATED-NII-CURRENT> 102,005
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 178,495
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 1,440,515,062
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 63,997,934
<OTHER-INCOME> 0
<EXPENSES-NET> 5,505,369
<NET-INVESTMENT-INCOME> 58,492,565
<REALIZED-GAINS-CURRENT> 358,352
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 58,850,917
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 58,492,565
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4,446,530,993
<NUMBER-OF-SHARES-REDEEMED> 4,028,593,568
<SHARES-REINVESTED> 18,522,775
<NET-CHANGE-IN-ASSETS> 436,818,552
<ACCUMULATED-NII-PRIOR> 102,005
<ACCUMULATED-GAINS-PRIOR> 179,857
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,836,566
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 6,499,146
<AVERAGE-NET-ASSETS> 1,197,139,369
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .05
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .05
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .46
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>020
<NAME>U.S. GOVERNMENT FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 2,258,223,097
<INVESTMENTS-AT-VALUE> 2,258,223,097
<RECEIVABLES> 11,394,852
<ASSETS-OTHER> 1,562
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,269,619,511
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 9,411,665
<TOTAL-LIABILITIES> 9,411,665
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2,260,547,511
<SHARES-COMMON-STOCK> 2,260,591,023
<SHARES-COMMON-PRIOR> 1,912,908,806
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 56,270
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 283,395
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 2,260,207,846
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 126,276,176
<OTHER-INCOME> 0
<EXPENSES-NET> 11,310,043
<NET-INVESTMENT-INCOME> 114,966,133
<REALIZED-GAINS-CURRENT> (48,377)
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 114,917,756
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 114,966,133
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 8,855,872,101
<NUMBER-OF-SHARES-REDEEMED> 8,526,685,614
<SHARES-REINVESTED> 18,495,730
<NET-CHANGE-IN-ASSETS> 347,633,840
<ACCUMULATED-NII-PRIOR> 56,270
<ACCUMULATED-GAINS-PRIOR> 235,018
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3,114,327
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 11,640,997
<AVERAGE-NET-ASSETS> 2,261,939,067
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .05
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .05
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>031
<NAME>MUNICIPAL MONEY MARKET FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 1,020,968,103
<INVESTMENTS-AT-VALUE> 1,020,968,103
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,033,235,352
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,023,083,024
<SHARES-COMMON-STOCK> 44,078,064
<SHARES-COMMON-PRIOR> 54,631,118
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 198,272
<ACCUMULATED-NET-GAINS> 1,121,466
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 1,021,763,286
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 32,934,108
<OTHER-INCOME> 0
<EXPENSES-NET> 4,031,221
<NET-INVESTMENT-INCOME> 28,902,887
<REALIZED-GAINS-CURRENT> 172,328
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 29,075,215
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,571,100
<DISTRIBUTIONS-OF-GAINS> 3,249
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 81,294,057
<NUMBER-OF-SHARES-REDEEMED> 93,421,410
<SHARES-REINVESTED> 1,574,299
<NET-CHANGE-IN-ASSETS> 331,492,675
<ACCUMULATED-NII-PRIOR> 136,840
<ACCUMULATED-GAINS-PRIOR> 93,794
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,961,387
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,270,532
<AVERAGE-NET-ASSETS> 50,260,890
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .03
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .03
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .65
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>032
<NAME>MUNICIPAL MONEY MARKET FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 1,020,968,103
<INVESTMENTS-AT-VALUE> 1,020,968,103
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,033,235,352
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,023,083,024
<SHARES-COMMON-STOCK> 977,681,829
<SHARES-COMMON-PRIOR> 635,746,998
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 198,272
<ACCUMULATED-NET-GAINS> 1,121,466
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 1,021,763,286
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 32,934,108
<OTHER-INCOME> 0
<EXPENSES-NET> 4,031,221
<NET-INVESTMENT-INCOME> 28,902,887
<REALIZED-GAINS-CURRENT> 172,328
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 29,075,215
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 27,331,787
<DISTRIBUTIONS-OF-GAINS> 58,183
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,529,846,649
<NUMBER-OF-SHARES-REDEEMED> 2,192,829,602
<SHARES-REINVESTED> 4,917,786
<NET-CHANGE-IN-ASSETS> 331,492,675
<ACCUMULATED-NII-PRIOR> 136,840
<ACCUMULATED-GAINS-PRIOR> 93,794
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,961,387
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,270,532
<AVERAGE-NET-ASSETS> 823,213,858
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .03
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .03
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .45
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>51
<NAME>VALUGROWTH STOCK FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 468,089,897
<INVESTMENTS-AT-VALUE> 644,095,817
<RECEIVABLES> 4,022,170
<ASSETS-OTHER> 152,027,585
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 800,145,572
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 154,375,709
<TOTAL-LIABILITIES> 154,375,709
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 538,928,835
<SHARES-COMMON-STOCK> 1,060,700
<SHARES-COMMON-PRIOR> 751,519
<ACCUMULATED-NII-CURRENT> 288,928
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 65,767,735
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 40,784,365
<NET-ASSETS> 645,769,863
<DIVIDEND-INCOME> 7,006,424
<INTEREST-INCOME> 1,010,671
<OTHER-INCOME> 112,006
<EXPENSES-NET> 5,361,322
<NET-INVESTMENT-INCOME> 2,767,779
<REALIZED-GAINS-CURRENT> 102,163,282
<APPREC-INCREASE-CURRENT> (16,652,982)
<NET-CHANGE-FROM-OPS> 88,278,079
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 148,126
<DISTRIBUTIONS-OF-GAINS> 2,872,556
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 9,756,755
<NUMBER-OF-SHARES-REDEEMED> 4,932,945
<SHARES-REINVESTED> 2,917,450
<NET-CHANGE-IN-ASSETS> 440,144,663
<ACCUMULATED-NII-PRIOR> 901,111
<ACCUMULATED-GAINS-PRIOR> 16,987,042
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 4,141,066
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 6,450,466
<AVERAGE-NET-ASSETS> 22,895,960
<PER-SHARE-NAV-BEGIN> 25.06
<PER-SHARE-NII> .13
<PER-SHARE-GAIN-APPREC> 4.69
<PER-SHARE-DIVIDEND> .16
<PER-SHARE-DISTRIBUTIONS> 3.54
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 26.18
<EXPENSE-RATIO> 1.00
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>52
<NAME>VALUGROWTH STOCK FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 468,089,897
<INVESTMENTS-AT-VALUE> 644,095,817
<RECEIVABLES> 4,022,170
<ASSETS-OTHER> 152,027,585
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 800,145,572
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 154,375,709
<TOTAL-LIABILITIES> 154,375,709
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 538,928,835
<SHARES-COMMON-STOCK> 350,468
<SHARES-COMMON-PRIOR> 268,432
<ACCUMULATED-NII-CURRENT> 288,928
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 65,767,735
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 40,784,365
<NET-ASSETS> 645,769,863
<DIVIDEND-INCOME> 7,006,424
<INTEREST-INCOME> 1,010,671
<OTHER-INCOME> 112,006
<EXPENSES-NET> 5,361,322
<NET-INVESTMENT-INCOME> 2,767,779
<REALIZED-GAINS-CURRENT> 102,163,282
<APPREC-INCREASE-CURRENT> (16,652,982)
<NET-CHANGE-FROM-OPS> 88,278,079
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 9,192
<DISTRIBUTIONS-OF-GAINS> 1,010,191
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,656,624
<NUMBER-OF-SHARES-REDEEMED> 674,256
<SHARES-REINVESTED> 1,005,500
<NET-CHANGE-IN-ASSETS> 440,144,663
<ACCUMULATED-NII-PRIOR> 901,111
<ACCUMULATED-GAINS-PRIOR> 16,987,042
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 4,141,066
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 6,450,466
<AVERAGE-NET-ASSETS> 7,762,828
<PER-SHARE-NAV-BEGIN> 24.55
<PER-SHARE-NII> (.02)
<PER-SHARE-GAIN-APPREC> 4.56
<PER-SHARE-DIVIDEND> .03
<PER-SHARE-DISTRIBUTIONS> 3.54
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 25.52
<EXPENSE-RATIO> 1.75
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>53
<NAME>VALUGROWTH STOCK FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 468,089,897
<INVESTMENTS-AT-VALUE> 644,095,817
<RECEIVABLES> 4,022,170
<ASSETS-OTHER> 152,027,585
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 800,145,572
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 154,375,709
<TOTAL-LIABILITIES> 154,375,709
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 538,928,835
<SHARES-COMMON-STOCK> 23,293,762
<SHARES-COMMON-PRIOR> 7,199,513
<ACCUMULATED-NII-CURRENT> 288,928
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 65,767,735
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 40,784,365
<NET-ASSETS> 645,769,863
<DIVIDEND-INCOME> 7,006,424
<INTEREST-INCOME> 1,010,671
<OTHER-INCOME> 112,006
<EXPENSES-NET> 5,361,322
<NET-INVESTMENT-INCOME> 2,767,779
<REALIZED-GAINS-CURRENT> 102,163,282
<APPREC-INCREASE-CURRENT> (16,652,982)
<NET-CHANGE-FROM-OPS> 88,278,079
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 3,083,321
<DISTRIBUTIONS-OF-GAINS> 49,504,124
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 907,221,055
<NUMBER-OF-SHARES-REDEEMED> 530,042,316
<SHARES-REINVESTED> 21,586,227
<NET-CHANGE-IN-ASSETS> 440,144,663
<ACCUMULATED-NII-PRIOR> 901,111
<ACCUMULATED-GAINS-PRIOR> 16,987,042
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 4,141,066
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 6,450,466
<AVERAGE-NET-ASSETS> 499,641,080
<PER-SHARE-NAV-BEGIN> 25.03
<PER-SHARE-NII> .06
<PER-SHARE-GAIN-APPREC> 4.76
<PER-SHARE-DIVIDEND> .16
<PER-SHARE-DISTRIBUTIONS> 3.54
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 26.15
<EXPENSE-RATIO> 1.00
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>71
<NAME>MINNESOTA TAX-FREE FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 67,078,296
<INVESTMENTS-AT-VALUE> 70,329,521
<RECEIVABLES> 1,365,668
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 71,695,189
<PAYABLE-FOR-SECURITIES> 500,000
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 313,333
<TOTAL-LIABILITIES> 813,333
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 67,876,931
<SHARES-COMMON-STOCK> 3,040,821
<SHARES-COMMON-PRIOR> 2,435,632
<ACCUMULATED-NII-CURRENT> (41,761)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (204,539)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,251,225
<NET-ASSETS> 70,881,856
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3,239,158
<OTHER-INCOME> 0
<EXPENSES-NET> 459,318
<NET-INVESTMENT-INCOME> 2,779,840
<REALIZED-GAINS-CURRENT> 348,871
<APPREC-INCREASE-CURRENT> 2,099,959
<NET-CHANGE-FROM-OPS> 5,228,670
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,457,615
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 8,705,064
<NUMBER-OF-SHARES-REDEEMED> 3,166,663
<SHARES-REINVESTED> 1,064,641
<NET-CHANGE-IN-ASSETS> 22,879,547
<ACCUMULATED-NII-PRIOR> (41,761)
<ACCUMULATED-GAINS-PRIOR> (553,410)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 298,301
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 771,072
<AVERAGE-NET-ASSETS> 30,180,123
<PER-SHARE-NAV-BEGIN> 10.57
<PER-SHARE-NII> .53
<PER-SHARE-GAIN-APPREC> .48
<PER-SHARE-DIVIDEND> .53
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.05
<EXPENSE-RATIO> .60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>72
<NAME>MINNESOTA TAX-FREE FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 67,078,296
<INVESTMENTS-AT-VALUE> 70,329,521
<RECEIVABLES> 1,365,668
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 71,695,189
<PAYABLE-FOR-SECURITIES> 500,000
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 313,333
<TOTAL-LIABILITIES> 813,333
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 67,876,931
<SHARES-COMMON-STOCK> 1,498,165
<SHARES-COMMON-PRIOR> 1,053,215
<ACCUMULATED-NII-CURRENT> (41,761)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (204,539)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,251,225
<NET-ASSETS> 70,881,856
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3,239,158
<OTHER-INCOME> 0
<EXPENSES-NET> 459,318
<NET-INVESTMENT-INCOME> 2,779,840
<REALIZED-GAINS-CURRENT> 348,871
<APPREC-INCREASE-CURRENT> 2,099,959
<NET-CHANGE-FROM-OPS> 5,228,670
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 550,306
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 6,079,249
<NUMBER-OF-SHARES-REDEEMED> 1,616,019
<SHARES-REINVESTED> 409,199
<NET-CHANGE-IN-ASSETS> 22,879,547
<ACCUMULATED-NII-PRIOR> (41,761)
<ACCUMULATED-GAINS-PRIOR> (553,410)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 298,301
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 771,072
<AVERAGE-NET-ASSETS> 13,523,019
<PER-SHARE-NAV-BEGIN> 10.57
<PER-SHARE-NII> .45
<PER-SHARE-GAIN-APPREC> .48
<PER-SHARE-DIVIDEND> .45
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.05
<EXPENSE-RATIO> 1.35
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>73
<NAME>MINNESOTA TAX-FREE FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 67,078,296
<INVESTMENTS-AT-VALUE> 70,329,521
<RECEIVABLES> 1,365,668
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 71,695,189
<PAYABLE-FOR-SECURITIES> 500,000
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 313,333
<TOTAL-LIABILITIES> 813,333
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 67,876,931
<SHARES-COMMON-STOCK> 1,876,678
<SHARES-COMMON-PRIOR> 1,053,649
<ACCUMULATED-NII-CURRENT> (41,761)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (204,539)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,251,225
<NET-ASSETS> 70,881,856
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3,239,158
<OTHER-INCOME> 0
<EXPENSES-NET> 459,318
<NET-INVESTMENT-INCOME> 2,779,840
<REALIZED-GAINS-CURRENT> 348,871
<APPREC-INCREASE-CURRENT> 2,099,959
<NET-CHANGE-FROM-OPS> 5,228,670
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 771,919
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 11,447,292
<NUMBER-OF-SHARES-REDEEMED> 2,736,119
<SHARES-REINVESTED> 244,073
<NET-CHANGE-IN-ASSETS> 22,879,547
<ACCUMULATED-NII-PRIOR> (41,761)
<ACCUMULATED-GAINS-PRIOR> (553,410)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 298,301
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 771,072
<AVERAGE-NET-ASSETS> 15,957,103
<PER-SHARE-NAV-BEGIN> 10.57
<PER-SHARE-NII> .53
<PER-SHARE-GAIN-APPREC> .48
<PER-SHARE-DIVIDEND> .53
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.05
<EXPENSE-RATIO> .60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>081
<NAME>READY CASH INVESTMENT FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 790,042,915
<INVESTMENTS-AT-VALUE> 790,042,915
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 790,042,915
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 325,847
<TOTAL-LIABILITIES> 325,847
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 789,736,109
<SHARES-COMMON-STOCK> 789,408,055
<SHARES-COMMON-PRIOR> 576,030,990
<ACCUMULATED-NII-CURRENT> 3,100
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 15,941
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 789,717,068
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 26,939,935
<OTHER-INCOME> 28,121,589
<EXPENSES-NET> 4,873,840
<NET-INVESTMENT-INCOME> 50,187,684
<REALIZED-GAINS-CURRENT> 48,398
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 50,236,082
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 32,585,755
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 659,278,049
<NUMBER-OF-SHARES-REDEEMED> 478,499,142
<SHARES-REINVESTED> 32,598,158
<NET-CHANGE-IN-ASSETS> (1,137,398,540)
<ACCUMULATED-NII-PRIOR> 3,100
<ACCUMULATED-GAINS-PRIOR> 64,339
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,591,095
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 5,223,356
<AVERAGE-NET-ASSETS> 657,774,741
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .05
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .05
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .82
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>082
<NAME>READY CASH INVESTMENT FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 790,042,915
<INVESTMENTS-AT-VALUE> 790,042,915
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 790,042,915
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 325,847
<TOTAL-LIABILITIES> 325,847
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 789,736,109
<SHARES-COMMON-STOCK> 337,280
<SHARES-COMMON-PRIOR> 655,113
<ACCUMULATED-NII-CURRENT> 3,100
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 15,941
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 789,717,068
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 26,939,935
<OTHER-INCOME> 28,121,589
<EXPENSES-NET> 4,873,840
<NET-INVESTMENT-INCOME> 50,187,684
<REALIZED-GAINS-CURRENT> 48,398
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 50,236,082
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 15,813
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,123,635
<NUMBER-OF-SHARES-REDEEMED> 1,457,455
<SHARES-REINVESTED> 15,986
<NET-CHANGE-IN-ASSETS> (1,137,398,540)
<ACCUMULATED-NII-PRIOR> 3,100
<ACCUMULATED-GAINS-PRIOR> 64,339
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,591,095
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 5,223,356
<AVERAGE-NET-ASSETS> 375,879
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .05
<PER-SHARE-GAIN-APPREC> (.01)
<PER-SHARE-DIVIDEND> .04
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 1.56
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>083
<NAME>READY CASH INVESTMENT FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 790,042,915
<INVESTMENTS-AT-VALUE> 790,042,915
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 790,042,915
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 325,847
<TOTAL-LIABILITIES> 325,847
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 789,736,109
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<SHARES-COMMON-PRIOR> 1,350,506,173
<ACCUMULATED-NII-CURRENT> 3,100
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 15,941
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 789,717,068
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 26,939,935
<OTHER-INCOME> 28,121,589
<EXPENSES-NET> 4,873,840
<NET-INVESTMENT-INCOME> 50,187,684
<REALIZED-GAINS-CURRENT> 48,398
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 50,236,082
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 17,586,116
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,297,000,821
<NUMBER-OF-SHARES-REDEEMED> 2,647,547,501
<SHARES-REINVESTED> 40,511
<NET-CHANGE-IN-ASSETS> (1,137,398,540)
<ACCUMULATED-NII-PRIOR> 3,100
<ACCUMULATED-GAINS-PRIOR> 64,339
<OVERDISTRIB-NII-PRIOR> 0
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<GROSS-ADVISORY-FEES> 1,591,095
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 5,223,356
<AVERAGE-NET-ASSETS> 619,257,127
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .05
<PER-SHARE-GAIN-APPREC> (.01)
<PER-SHARE-DIVIDEND> .04
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 1.56
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>101
<NAME>INCOME FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 294,568,081
<INVESTMENTS-AT-VALUE> 300,541,445
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<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 380,993,266
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<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 77,911,522
<TOTAL-LIABILITIES> 77,911,522
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 309,548,295
<SHARES-COMMON-STOCK> 782,898
<SHARES-COMMON-PRIOR> 554,472
<ACCUMULATED-NII-CURRENT> 14,155
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (12,454,070)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 5,973,364
<NET-ASSETS> 303,081,744
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 19,786,506
<OTHER-INCOME> 74,088
<EXPENSES-NET> 2,136,425
<NET-INVESTMENT-INCOME> 17,724,169
<REALIZED-GAINS-CURRENT> 5,713,653
<APPREC-INCREASE-CURRENT> 8,900,463
<NET-CHANGE-FROM-OPS> 32,338,285
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 363,744
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,728,447
<NUMBER-OF-SHARES-REDEEMED> 1,801,850
<SHARES-REINVESTED> 296,527
<NET-CHANGE-IN-ASSETS> 36,384,103
<ACCUMULATED-NII-PRIOR> 17,328
<ACCUMULATED-GAINS-PRIOR> (18,170,896)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,404,711
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,656,072
<AVERAGE-NET-ASSETS> 5,782,768
<PER-SHARE-NAV-BEGIN> 9.27
<PER-SHARE-NII> .61
<PER-SHARE-GAIN-APPREC> .52
<PER-SHARE-DIVIDEND> .61
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.79
<EXPENSE-RATIO> .75
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>102
<NAME>INCOME FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 294,568,081
<INVESTMENTS-AT-VALUE> 300,541,445
<RECEIVABLES> 4,546,971
<ASSETS-OTHER> 75,904,850
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 380,993,266
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 77,911,522
<TOTAL-LIABILITIES> 77,911,522
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 309,548,295
<SHARES-COMMON-STOCK> 496,903
<SHARES-COMMON-PRIOR> 361,657
<ACCUMULATED-NII-CURRENT> 14,155
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (12,454,070)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 5,973,364
<NET-ASSETS> 303,081,744
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 19,786,506
<OTHER-INCOME> 74,088
<EXPENSES-NET> 2,136,425
<NET-INVESTMENT-INCOME> 17,724,169
<REALIZED-GAINS-CURRENT> 5,713,653
<APPREC-INCREASE-CURRENT> 8,900,463
<NET-CHANGE-FROM-OPS> 32,338,285
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 219,574
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,708,790
<NUMBER-OF-SHARES-REDEEMED> 582,886
<SHARES-REINVESTED> 181,100
<NET-CHANGE-IN-ASSETS> 36,384,103
<ACCUMULATED-NII-PRIOR> 17,328
<ACCUMULATED-GAINS-PRIOR> (18,170,896)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,404,711
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,656,072
<AVERAGE-NET-ASSETS> 3,966,422
<PER-SHARE-NAV-BEGIN> 9.26
<PER-SHARE-NII> .54
<PER-SHARE-GAIN-APPREC> .51
<PER-SHARE-DIVIDEND> .54
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.77
<EXPENSE-RATIO> 1.50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>103
<NAME>INCOME FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 294,568,081
<INVESTMENTS-AT-VALUE> 300,541,445
<RECEIVABLES> 4,546,971
<ASSETS-OTHER> 75,904,850
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 380,993,266
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 77,911,522
<TOTAL-LIABILITIES> 77,911,522
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 309,548,295
<SHARES-COMMON-STOCK> 29,721,541
<SHARES-COMMON-PRIOR> 27,868,740
<ACCUMULATED-NII-CURRENT> 14,155
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (12,454,070)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 5,973,364
<NET-ASSETS> 303,081,744
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 19,786,506
<OTHER-INCOME> 74,088
<EXPENSES-NET> 2,136,425
<NET-INVESTMENT-INCOME> 17,724,169
<REALIZED-GAINS-CURRENT> 5,713,653
<APPREC-INCREASE-CURRENT> 8,900,463
<NET-CHANGE-FROM-OPS> 32,338,285
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 17,140,851
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 193,004,368
<NUMBER-OF-SHARES-REDEEMED> 175,266,232
<SHARES-REINVESTED> 501,723
<NET-CHANGE-IN-ASSETS> 36,384,103
<ACCUMULATED-NII-PRIOR> 17,328
<ACCUMULATED-GAINS-PRIOR> (18,170,896)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,404,711
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,656,072
<AVERAGE-NET-ASSETS> 271,193,060
<PER-SHARE-NAV-BEGIN> 9.27
<PER-SHARE-NII> .61
<PER-SHARE-GAIN-APPREC> .51
<PER-SHARE-DIVIDEND> .61
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.78
<EXPENSE-RATIO> .75
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>111
<NAME>TAX FREE INCOME FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 306,668,801
<INVESTMENTS-AT-VALUE> 324,864,498
<RECEIVABLES> 12,319,260
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 337,183,758
<PAYABLE-FOR-SECURITIES> 2,226,065
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,032,860
<TOTAL-LIABILITIES> 4,258,925
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 319,094,870
<SHARES-COMMON-STOCK> 3,332,933
<SHARES-COMMON-PRIOR> 2,906,731
<ACCUMULATED-NII-CURRENT> (509,881)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (3,855,853)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 18,195,697
<NET-ASSETS> 332,924,833
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 17,824,401
<OTHER-INCOME> 0
<EXPENSES-NET> 1,947,962
<NET-INVESTMENT-INCOME> 15,876,439
<REALIZED-GAINS-CURRENT> 5,515,394
<APPREC-INCREASE-CURRENT> 8,997,364
<NET-CHANGE-FROM-OPS> 30,389,197
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,575,363
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 10,396,839
<NUMBER-OF-SHARES-REDEEMED> 7,217,647
<SHARES-REINVESTED> 1,248,714
<NET-CHANGE-IN-ASSETS> 36,518,160
<ACCUMULATED-NII-PRIOR> (509,881)
<ACCUMULATED-GAINS-PRIOR> (9,371,247)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,566,676
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3,014,622
<AVERAGE-NET-ASSETS> 30,978,328
<PER-SHARE-NAV-BEGIN> 10.05
<PER-SHARE-NII> .53
<PER-SHARE-GAIN-APPREC> .49
<PER-SHARE-DIVIDEND> .53
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.54
<EXPENSE-RATIO> .60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>112
<NAME>TAX FREE INCOME FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 306,668,801
<INVESTMENTS-AT-VALUE> 324,864,498
<RECEIVABLES> 12,319,260
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 337,183,758
<PAYABLE-FOR-SECURITIES> 2,226,065
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,032,860
<TOTAL-LIABILITIES> 4,258,925
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 319,094,870
<SHARES-COMMON-STOCK> 1,050,353
<SHARES-COMMON-PRIOR> 729,005
<ACCUMULATED-NII-CURRENT> (509,881)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (3,855,853)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 18,195,697
<NET-ASSETS> 332,924,833
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 17,824,401
<OTHER-INCOME> 0
<EXPENSES-NET> 1,947,962
<NET-INVESTMENT-INCOME> 15,876,439
<REALIZED-GAINS-CURRENT> 5,515,394
<APPREC-INCREASE-CURRENT> 8,997,364
<NET-CHANGE-FROM-OPS> 30,389,197
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 392,899
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4,015,589
<NUMBER-OF-SHARES-REDEEMED> 986,449
<SHARES-REINVESTED> 302,167
<NET-CHANGE-IN-ASSETS> 36,518,160
<ACCUMULATED-NII-PRIOR> (509,881)
<ACCUMULATED-GAINS-PRIOR> (9,371,247)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,566,676
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3,014,622
<AVERAGE-NET-ASSETS> 9,110,691
<PER-SHARE-NAV-BEGIN> 10.05
<PER-SHARE-NII> .46
<PER-SHARE-GAIN-APPREC> .53
<PER-SHARE-DIVIDEND> .50
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.54
<EXPENSE-RATIO> 1.35
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>113
<NAME>TAX FREE INCOME FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 306,668,801
<INVESTMENTS-AT-VALUE> 324,864,498
<RECEIVABLES> 12,319,260
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 337,183,758
<PAYABLE-FOR-SECURITIES> 2,226,065
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,032,860
<TOTAL-LIABILITIES> 4,258,925
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 319,094,870
<SHARES-COMMON-STOCK> 27,195,137
<SHARES-COMMON-PRIOR> 25,837,359
<ACCUMULATED-NII-CURRENT> (509,881)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (3,855,853)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 18,195,697
<NET-ASSETS> 332,924,833
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 17,824,401
<OTHER-INCOME> 0
<EXPENSES-NET> 1,947,962
<NET-INVESTMENT-INCOME> 15,876,439
<REALIZED-GAINS-CURRENT> 5,515,394
<APPREC-INCREASE-CURRENT> 8,997,364
<NET-CHANGE-FROM-OPS> 30,389,197
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 13,908,177
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 207,775,946
<NUMBER-OF-SHARES-REDEEMED> 194,254,301
<SHARES-REINVESTED> 724,544
<NET-CHANGE-IN-ASSETS> 36,518,160
<ACCUMULATED-NII-PRIOR> (509,881)
<ACCUMULATED-GAINS-PRIOR> (9,371,247)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,566,676
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3,014,622
<AVERAGE-NET-ASSETS> 273,246,215
<PER-SHARE-NAV-BEGIN> 10.06
<PER-SHARE-NII> .53
<PER-SHARE-GAIN-APPREC> .48
<PER-SHARE-DIVIDEND> .53
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.54
<EXPENSE-RATIO> .60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>141
<NAME>COLORADO TAX-FREE FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 70,839,513
<INVESTMENTS-AT-VALUE> 75,175,655
<RECEIVABLES> 1,779,453
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 76,955,108
<PAYABLE-FOR-SECURITIES> 977,540
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 225,955
<TOTAL-LIABILITIES> 1,203,495
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 71,968,873
<SHARES-COMMON-STOCK> 3,203,431
<SHARES-COMMON-PRIOR> 2,720,629
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (553,402)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,336,142
<NET-ASSETS> 75,751,613
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3,725,440
<OTHER-INCOME> 0
<EXPENSES-NET> 457,956
<NET-INVESTMENT-INCOME> 3,267,484
<REALIZED-GAINS-CURRENT> 477,006
<APPREC-INCREASE-CURRENT> 2,416,938
<NET-CHANGE-FROM-OPS> 6,161,428
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,535,133
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 7,477,552
<NUMBER-OF-SHARES-REDEEMED> 3,579,424
<SHARES-REINVESTED> 1,197,281
<NET-CHANGE-IN-ASSETS> 14,811,114
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (1,030,408)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 332,299
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 761,394
<AVERAGE-NET-ASSETS> 30,679,577
<PER-SHARE-NAV-BEGIN> 10.22
<PER-SHARE-NII> .53
<PER-SHARE-GAIN-APPREC> .47
<PER-SHARE-DIVIDEND> .53
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.69
<EXPENSE-RATIO> .60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>142
<NAME>COLORADO TAX-FREE FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 70,839,513
<INVESTMENTS-AT-VALUE> 75,175,655
<RECEIVABLES> 1,779,453
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 76,955,108
<PAYABLE-FOR-SECURITIES> 977,540
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 225,955
<TOTAL-LIABILITIES> 1,203,495
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 71,968,873
<SHARES-COMMON-STOCK> 855,231
<SHARES-COMMON-PRIOR> 705,343
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (553,402)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,336,142
<NET-ASSETS> 75,751,613
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3,725,440
<OTHER-INCOME> 0
<EXPENSES-NET> 457,956
<NET-INVESTMENT-INCOME> 3,267,484
<REALIZED-GAINS-CURRENT> 477,006
<APPREC-INCREASE-CURRENT> 2,416,938
<NET-CHANGE-FROM-OPS> 6,161,428
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 335,170
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,868,087
<NUMBER-OF-SHARES-REDEEMED> 1,495,848
<SHARES-REINVESTED> 232,515
<NET-CHANGE-IN-ASSETS> 14,811,114
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (1,030,408)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 332,299
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 761,394
<AVERAGE-NET-ASSETS> 7,903,058
<PER-SHARE-NAV-BEGIN> 10.23
<PER-SHARE-NII> .45
<PER-SHARE-GAIN-APPREC> .48
<PER-SHARE-DIVIDEND> .45
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.71
<EXPENSE-RATIO> 1.35
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>143
<NAME>COLORADO TAX-FREE FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 70,839,513
<INVESTMENTS-AT-VALUE> 75,175,655
<RECEIVABLES> 1,779,453
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 76,955,108
<PAYABLE-FOR-SECURITIES> 977,540
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 225,955
<TOTAL-LIABILITIES> 1,203,495
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 71,968,873
<SHARES-COMMON-STOCK> 3,024,183
<SHARES-COMMON-PRIOR> 2,535,381
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (553,402)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,336,142
<NET-ASSETS> 75,751,613
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3,725,440
<OTHER-INCOME> 0
<EXPENSES-NET> 457,956
<NET-INVESTMENT-INCOME> 3,267,484
<REALIZED-GAINS-CURRENT> 477,006
<APPREC-INCREASE-CURRENT> 2,416,938
<NET-CHANGE-FROM-OPS> 6,161,428
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,397,181
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 8,617,144
<NUMBER-OF-SHARES-REDEEMED> 3,434,846
<SHARES-REINVESTED> 34,709
<NET-CHANGE-IN-ASSETS> 14,811,114
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (1,030,408)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 332,299
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 761,394
<AVERAGE-NET-ASSETS> 27,877,210
<PER-SHARE-NAV-BEGIN> 10.22
<PER-SHARE-NII> .53
<PER-SHARE-GAIN-APPREC> .47
<PER-SHARE-DIVIDEND> .53
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.69
<EXPENSE-RATIO> .60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>161
<NAME>TOTAL RETURN BOND FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 116,308,024
<INVESTMENTS-AT-VALUE> 115,597,950
<RECEIVABLES> 93,227
<ASSETS-OTHER> 3,814
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 115,694,991
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 933,183
<TOTAL-LIABILITIES> 933,183
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 113,037,676
<SHARES-COMMON-STOCK> 314,635
<SHARES-COMMON-PRIOR> 328,147
<ACCUMULATED-NII-CURRENT> (15,111)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,449,317
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (710,074)
<NET-ASSETS> 114,761,808
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 8,763,142
<OTHER-INCOME> (549,202)
<EXPENSES-NET> 369,744
<NET-INVESTMENT-INCOME> 7,844,196
<REALIZED-GAINS-CURRENT> 3,752,024
<APPREC-INCREASE-CURRENT> 120,524
<NET-CHANGE-FROM-OPS> 11,716,744
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 192,400
<DISTRIBUTIONS-OF-GAINS> 14,547
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,926,421
<NUMBER-OF-SHARES-REDEEMED> 2,266,442
<SHARES-REINVESTED> 202,458
<NET-CHANGE-IN-ASSETS> (16,014,166)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (597,996)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 528,863
<AVERAGE-NET-ASSETS> 3,132,865
<PER-SHARE-NAV-BEGIN> 9.40
<PER-SHARE-NII> .59
<PER-SHARE-GAIN-APPREC> .28
<PER-SHARE-DIVIDEND> .59
<PER-SHARE-DISTRIBUTIONS> .05
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.63
<EXPENSE-RATIO> .75
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>162
<NAME>TOTAL RETURN BOND FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 116,308,024
<INVESTMENTS-AT-VALUE> 115,597,950
<RECEIVABLES> 93,227
<ASSETS-OTHER> 3,814
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 115,694,991
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 933,183
<TOTAL-LIABILITIES> 933,183
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 113,037,676
<SHARES-COMMON-STOCK> 274,524
<SHARES-COMMON-PRIOR> 239,286
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,449,317
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (710,074)
<NET-ASSETS> 114,761,808
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 8,763,142
<OTHER-INCOME> (549,202)
<EXPENSES-NET> 369,744
<NET-INVESTMENT-INCOME> 7,844,196
<REALIZED-GAINS-CURRENT> 3,752,024
<APPREC-INCREASE-CURRENT> 120,524
<NET-CHANGE-FROM-OPS> 11,716,744
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 131,933
<DISTRIBUTIONS-OF-GAINS> 12,417
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 577,233
<NUMBER-OF-SHARES-REDEEMED> 360,395
<SHARES-REINVESTED> 122,628
<NET-CHANGE-IN-ASSETS> (16,014,166)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (597,996)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 528,863
<AVERAGE-NET-ASSETS> 2,456,318
<PER-SHARE-NAV-BEGIN> 9.42
<PER-SHARE-NII> .52
<PER-SHARE-GAIN-APPREC> .28
<PER-SHARE-DIVIDEND> .52
<PER-SHARE-DISTRIBUTIONS> .05
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.65
<EXPENSE-RATIO> 1.50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>163
<NAME>TOTAL RETURN BOND FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 116,308,024
<INVESTMENTS-AT-VALUE> 115,597,950
<RECEIVABLES> 93,227
<ASSETS-OTHER> 3,814
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 115,694,991
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 933,183
<TOTAL-LIABILITIES> 933,183
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 113,037,676
<SHARES-COMMON-STOCK> 11,313,696
<SHARES-COMMON-PRIOR> 13,323,356
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,449,317
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (710,074)
<NET-ASSETS> 114,761,808
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 8,763,142
<OTHER-INCOME> (549,202)
<EXPENSES-NET> 369,744
<NET-INVESTMENT-INCOME> 7,844,196
<REALIZED-GAINS-CURRENT> 3,752,024
<APPREC-INCREASE-CURRENT> 120,524
<NET-CHANGE-FROM-OPS> 11,716,744
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 7,519,863
<DISTRIBUTIONS-OF-GAINS> 677,747
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 26,212,554
<NUMBER-OF-SHARES-REDEEMED> 46,352,971
<SHARES-REINVESTED> 756,511
<NET-CHANGE-IN-ASSETS> (16,014,166)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (597,996)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 528,863
<AVERAGE-NET-ASSETS> 122,531,765
<PER-SHARE-NAV-BEGIN> 9.41
<PER-SHARE-NII> .59
<PER-SHARE-GAIN-APPREC> .28
<PER-SHARE-DIVIDEND> .59
<PER-SHARE-DISTRIBUTIONS> .05
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.64
<EXPENSE-RATIO> .75
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>171
<NAME>SMALL COMPANY STOCK FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 127,103,449
<INVESTMENTS-AT-VALUE> 128,484,786
<RECEIVABLES> 37,005
<ASSETS-OTHER> 3,814
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 128,525,605
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,588,479
<TOTAL-LIABILITIES> 1,588,479
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 127,471,616
<SHARES-COMMON-STOCK> 701,993
<SHARES-COMMON-PRIOR> 527,303
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,915,871)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,381,381
<NET-ASSETS> 126,937,126
<DIVIDEND-INCOME> 596,771
<INTEREST-INCOME> 533,972
<OTHER-INCOME> (1,647,146)
<EXPENSES-NET> 506,712
<NET-INVESTMENT-INCOME> (1,023,115)
<REALIZED-GAINS-CURRENT> 34,416,452
<APPREC-INCREASE-CURRENT> (23,455,025)
<NET-CHANGE-FROM-OPS> 9,938,312
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 1,666,653
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 32,666,817
<NUMBER-OF-SHARES-REDEEMED> 32,367,012
<SHARES-REINVESTED> 1,700,465
<NET-CHANGE-IN-ASSETS> (47,538,778)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 7,214,838
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 751,439
<AVERAGE-NET-ASSETS> 8,975,500
<PER-SHARE-NAV-BEGIN> 13.95
<PER-SHARE-NII> (.07)
<PER-SHARE-GAIN-APPREC> 1.02
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 2.90
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.00
<EXPENSE-RATIO> 1.20
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>172
<NAME>SMALL COMPANY STOCK FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 127,103,449
<INVESTMENTS-AT-VALUE> 128,484,786
<RECEIVABLES> 37,005
<ASSETS-OTHER> 3,814
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 128,525,605
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,588,479
<TOTAL-LIABILITIES> 1,588,479
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 127,471,616
<SHARES-COMMON-STOCK> 501,468
<SHARES-COMMON-PRIOR> 375,996
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,915,871)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,381,381
<NET-ASSETS> 126,937,126
<DIVIDEND-INCOME> 596,771
<INTEREST-INCOME> 533,972
<OTHER-INCOME> (1,647,146)
<EXPENSES-NET> 506,712
<NET-INVESTMENT-INCOME> (1,023,115)
<REALIZED-GAINS-CURRENT> 34,416,452
<APPREC-INCREASE-CURRENT> (23,455,025)
<NET-CHANGE-FROM-OPS> 9,938,312
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 1,144,041
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,056,804
<NUMBER-OF-SHARES-REDEEMED> 719,617
<SHARES-REINVESTED> 1,155,994
<NET-CHANGE-IN-ASSETS> (47,538,778)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 7,214,838
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 751,439
<AVERAGE-NET-ASSETS> 5,769,776
<PER-SHARE-NAV-BEGIN> 13.63
<PER-SHARE-NII> (.11)
<PER-SHARE-GAIN-APPREC> .94
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 2.90
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.56
<EXPENSE-RATIO> 1.95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>173
<NAME>SMALL COMPANY STOCK FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 127,103,449
<INVESTMENTS-AT-VALUE> 128,484,786
<RECEIVABLES> 37,005
<ASSETS-OTHER> 3,814
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 128,525,605
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,588,479
<TOTAL-LIABILITIES> 1,588,479
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 127,471,616
<SHARES-COMMON-STOCK> 9,446,445
<SHARES-COMMON-PRIOR> 11,669,633
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,915,871)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,381,381
<NET-ASSETS> 126,937,126
<DIVIDEND-INCOME> 596,771
<INTEREST-INCOME> 533,972
<OTHER-INCOME> (1,647,146)
<EXPENSES-NET> 506,712
<NET-INVESTMENT-INCOME> (1,023,115)
<REALIZED-GAINS-CURRENT> 34,416,452
<APPREC-INCREASE-CURRENT> (23,455,025)
<NET-CHANGE-FROM-OPS> 9,938,312
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 38,640,779
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 88,835,637
<NUMBER-OF-SHARES-REDEEMED> 162,711,391
<SHARES-REINVESTED> 10,996,066
<NET-CHANGE-IN-ASSETS> (47,538,778)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 7,214,838
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 751,439
<AVERAGE-NET-ASSETS> 171,703,917
<PER-SHARE-NAV-BEGIN> 13.88
<PER-SHARE-NII> (.09)
<PER-SHARE-GAIN-APPREC> 1.11
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 2.90
<RETURNS-OF-CAPITAL> (.07)
<PER-SHARE-NAV-END> 11.93
<EXPENSE-RATIO> 1.20
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>180
<NAME>CONTRARIAN STOCK FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 3,105,301
<INVESTMENTS-AT-VALUE> 3,637,688
<RECEIVABLES> 4,684
<ASSETS-OTHER> 412,259
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 4,054,631
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 414,041
<TOTAL-LIABILITIES> 414,041
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 3,717,886
<SHARES-COMMON-STOCK> 332,988
<SHARES-COMMON-PRIOR> 805,532
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (609,683)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 532,387
<NET-ASSETS> 3,640,590
<DIVIDEND-INCOME> 88,079
<INTEREST-INCOME> 21,897
<OTHER-INCOME> 0
<EXPENSES-NET> 71,136
<NET-INVESTMENT-INCOME> 38,840
<REALIZED-GAINS-CURRENT> 1,308,766
<APPREC-INCREASE-CURRENT> (733,029)
<NET-CHANGE-FROM-OPS> 614,577
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 115,776
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,007,595
<NUMBER-OF-SHARES-REDEEMED> 7,148,590
<SHARES-REINVESTED> 22,561
<NET-CHANGE-IN-ASSETS> (4,619,633)
<ACCUMULATED-NII-PRIOR> 75,642
<ACCUMULATED-GAINS-PRIOR> (1,918,449)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 47,418
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 136,685
<AVERAGE-NET-ASSETS> 5,927,222
<PER-SHARE-NAV-BEGIN> 10.25
<PER-SHARE-NII> .14
<PER-SHARE-GAIN-APPREC> .77
<PER-SHARE-DIVIDEND> .23
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.93
<EXPENSE-RATIO> 1.20
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>330
<NAME>LIMITED TERM TAX FREE FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 52,843,983
<INVESTMENTS-AT-VALUE> 53,940,282
<RECEIVABLES> 1,233,230
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 55,173,512
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 571,104
<TOTAL-LIABILITIES> 571,104
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 53,643,830
<SHARES-COMMON-STOCK> 5,156,597
<SHARES-COMMON-PRIOR> 3,946,129
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (137,721)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,096,299
<NET-ASSETS> 54,602,408
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2,484,741
<OTHER-INCOME> 0
<EXPENSES-NET> 315,387
<NET-INVESTMENT-INCOME> 2,169,354
<REALIZED-GAINS-CURRENT> (40,641)
<APPREC-INCREASE-CURRENT> 949,055
<NET-CHANGE-FROM-OPS> 3,077,768
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2,169,354
<DISTRIBUTIONS-OF-GAINS> 49,319
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 57,459,796
<NUMBER-OF-SHARES-REDEEMED> 44,980,718
<SHARES-REINVESTED> 274,112
<NET-CHANGE-IN-ASSETS> 13,612,285
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (47,761)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 242,621
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 501,966
<AVERAGE-NET-ASSETS> 48,524,221
<PER-SHARE-NAV-BEGIN> 10.39
<PER-SHARE-NII> .47
<PER-SHARE-GAIN-APPREC> .21
<PER-SHARE-DIVIDEND> .47
<PER-SHARE-DISTRIBUTIONS> .01
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.59
<EXPENSE-RATIO> .65
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>340
<NAME>MINNESOTA INTERMEDIATE TAX-FREE FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 196,594,108
<INVESTMENTS-AT-VALUE> 207,871,070
<RECEIVABLES> 3,695,635
<ASSETS-OTHER> 2,530
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 211,569,235
<PAYABLE-FOR-SECURITIES> 750,000
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,134,138
<TOTAL-LIABILITIES> 1,884,138
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 198,169,405
<SHARES-COMMON-STOCK> 20,910,720
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 238,730
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 11,276,962
<NET-ASSETS> 209,685,097
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 7,841,610
<OTHER-INCOME> 0
<EXPENSES-NET> 836,492
<NET-INVESTMENT-INCOME> 7,005,118
<REALIZED-GAINS-CURRENT> 329,218
<APPREC-INCREASE-CURRENT> 11,276,962
<NET-CHANGE-FROM-OPS> 18,611,298
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 7,005,118
<DISTRIBUTIONS-OF-GAINS> 90,488
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 433,149,281
<NUMBER-OF-SHARES-REDEEMED> 235,166,457
<SHARES-REINVESTED> 186,581
<NET-CHANGE-IN-ASSETS> 209,685,097
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 348,564
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,005,909
<AVERAGE-NET-ASSETS> 209,425,248
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .33
<PER-SHARE-GAIN-APPREC> .03
<PER-SHARE-DIVIDEND> .33
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.03
<EXPENSE-RATIO> .60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>350
<NAME>LIMITED TERM GOVERNMENT INCOME FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 65,429,984
<INVESTMENTS-AT-VALUE> 65,856,579
<RECEIVABLES> 838,357
<ASSETS-OTHER> 19,580,269
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 86,275,205
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 20,162,644
<TOTAL-LIABILITIES> 20,162,644
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 65,355,253
<SHARES-COMMON-STOCK> 6,689,310
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 330,713
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 426,595
<NET-ASSETS> 66,112,561
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2,631,549
<OTHER-INCOME> 12,944
<EXPENSES-NET> 172,088
<NET-INVESTMENT-INCOME> 2,472,405
<REALIZED-GAINS-CURRENT> 382,561
<APPREC-INCREASE-CURRENT> 426,595
<NET-CHANGE-FROM-OPS> 3,281,561
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2,472,405
<DISTRIBUTIONS-OF-GAINS> 51,848
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 136,571,157
<NUMBER-OF-SHARES-REDEEMED> 71,295,912
<SHARES-REINVESTED> 80,008
<NET-CHANGE-IN-ASSETS> 66,112,561
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 141,185
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 381,376
<AVERAGE-NET-ASSETS> 64,263,017
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .38
<PER-SHARE-GAIN-APPREC> (.11)
<PER-SHARE-DIVIDEND> .38
<PER-SHARE-DISTRIBUTIONS> .01
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.88
<EXPENSE-RATIO> .40
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>370
<NAME>PERFORMA DISCIPLINED GROWTH
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> OCT-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 11,703,514
<INVESTMENTS-AT-VALUE> 12,263,295
<RECEIVABLES> 59,333
<ASSETS-OTHER> 6,526
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 12,329,154
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 4,453
<TOTAL-LIABILITIES> 4,453
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 11,848,993
<SHARES-COMMON-STOCK> 1,180,491
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 1,649
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (85,722)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 559,781
<NET-ASSETS> 12,324,701
<DIVIDEND-INCOME> 38,865
<INTEREST-INCOME> 6,100
<OTHER-INCOME> (32,818)
<EXPENSES-NET> 7,521
<NET-INVESTMENT-INCOME> 4,626
<REALIZED-GAINS-CURRENT> (85,722)
<APPREC-INCREASE-CURRENT> 559,781
<NET-CHANGE-FROM-OPS> 478,685
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2,977
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 13,680,823
<NUMBER-OF-SHARES-REDEEMED> 1,832,263
<SHARES-REINVESTED> 432
<NET-CHANGE-IN-ASSETS> 12,324,700
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 46,639
<AVERAGE-NET-ASSETS> 5,246,198
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .01
<PER-SHARE-GAIN-APPREC> .44
<PER-SHARE-DIVIDEND> .01
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.44
<EXPENSE-RATIO> 1.25
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>380
<NAME>PERFORMA SMALL CAP VALUE
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> OCT-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 6,363,400
<INVESTMENTS-AT-VALUE> 6,365,283
<RECEIVABLES> 52,000
<ASSETS-OTHER> 6,503
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 6,423,786
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,530
<TOTAL-LIABILITIES> 1,530
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 6,407,849
<SHARES-COMMON-STOCK> 632,328
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> (9,089)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 21,613
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,883
<NET-ASSETS> 6,422,256
<DIVIDEND-INCOME> 8,471
<INTEREST-INCOME> 3,443
<OTHER-INCOME> (17,618)
<EXPENSES-NET> 3,385
<NET-INVESTMENT-INCOME> (9,089)
<REALIZED-GAINS-CURRENT> 21,613
<APPREC-INCREASE-CURRENT> 1,883
<NET-CHANGE-FROM-OPS> 14,407
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 6,801,733
<NUMBER-OF-SHARES-REDEEMED> 393,884
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 6,422,256
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 39,933
<AVERAGE-NET-ASSETS> 2,603,054
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> (.02)
<PER-SHARE-GAIN-APPREC> .18
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.16
<EXPENSE-RATIO> 1.30
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>360
<NAME>PERFORMA STRATEGIC VALUE
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> OCT-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 9,131,361
<INVESTMENTS-AT-VALUE> 9,169,825
<RECEIVABLES> 0
<ASSETS-OTHER> 4,690
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 9,174,515
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6,916
<TOTAL-LIABILITIES> 6,916
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 9,117,926
<SHARES-COMMON-STOCK> 891,731
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 8,348
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,861
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 38,464
<NET-ASSETS> 9,167,599
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 220,375
<OTHER-INCOME> (18,139)
<EXPENSES-NET> 9,099
<NET-INVESTMENT-INCOME> 193,137
<REALIZED-GAINS-CURRENT> 3,606
<APPREC-INCREASE-CURRENT> 38,464
<NET-CHANGE-FROM-OPS> 235,207
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 184,789
<DISTRIBUTIONS-OF-GAINS> 745
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 9,463,290
<NUMBER-OF-SHARES-REDEEMED> 482,503
<SHARES-REINVESTED> 137,139
<NET-CHANGE-IN-ASSETS> 9,167,599
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 45,508
<AVERAGE-NET-ASSETS> 5,293,400
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .33
<PER-SHARE-GAIN-APPREC> .28
<PER-SHARE-DIVIDEND> .33
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.28
<EXPENSE-RATIO> .85
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>390
<NAME>PERFORMA GLOBAL GROWTH
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> OCT-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 955,069
<INVESTMENTS-AT-VALUE> 1,027,418
<RECEIVABLES> 34,724
<ASSETS-OTHER> 4,690
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,066,832
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 965
<TOTAL-LIABILITIES> 965
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 991,082
<SHARES-COMMON-STOCK> 100,262
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 2,628
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (192)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 72,349
<NET-ASSETS> 1,065,867
<DIVIDEND-INCOME> 4,309
<INTEREST-INCOME> 3,930
<OTHER-INCOME> (3,270)
<EXPENSES-NET> 2,341
<NET-INVESTMENT-INCOME> 2,628
<REALIZED-GAINS-CURRENT> (192)
<APPREC-INCREASE-CURRENT> 72,349
<NET-CHANGE-FROM-OPS> 74,785
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,110,737
<NUMBER-OF-SHARES-REDEEMED> 119,655
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 1,065,867
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 34,746
<AVERAGE-NET-ASSETS> 616,967
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .03
<PER-SHARE-GAIN-APPREC> .60
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.63
<EXPENSE-RATIO> 1.45
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>190
<NAME>SMALL COMPANY GROWTH FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 681,042,796
<INVESTMENTS-AT-VALUE> 749,689,205
<RECEIVABLES> 262,317
<ASSETS-OTHER> 17,317
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 749,968,839
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,699,450
<TOTAL-LIABILITIES> 1,699,450
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 630,196,203
<SHARES-COMMON-STOCK> 22,208,195
<SHARES-COMMON-PRIOR> 14,402,581
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 49,426,777
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 68,646,409
<NET-ASSETS> 748,269,389
<DIVIDEND-INCOME> 1,856,653
<INTEREST-INCOME> 1,694,128
<OTHER-INCOME> (6,394,230)
<EXPENSES-NET> 2,213,609
<NET-INVESTMENT-INCOME> (5,057,058)
<REALIZED-GAINS-CURRENT> 119,313,461
<APPREC-INCREASE-CURRENT> (11,277,547)
<NET-CHANGE-FROM-OPS> 102,978,856
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 76,030,715
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 474,227,408
<NUMBER-OF-SHARES-REDEEMED> 275,214,975
<SHARES-REINVESTED> 74,728,592
<NET-CHANGE-IN-ASSETS> 300,689,166
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 11,733,582
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,294,825
<AVERAGE-NET-ASSETS> 688,340,461
<PER-SHARE-NAV-BEGIN> 31.08
<PER-SHARE-NII> (.23)
<PER-SHARE-GAIN-APPREC> 6.88
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 4.04
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 33.69
<EXPENSE-RATIO> 1.25
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>200
<NAME>LARGE COMPANY GROWTH FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 154,903,429
<INVESTMENTS-AT-VALUE> 232,059,925
<RECEIVABLES> 566,013
<ASSETS-OTHER> 17,317
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 232,643,255
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 144,030
<TOTAL-LIABILITIES> 144,030
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 152,928,762
<SHARES-COMMON-STOCK> 5,820,560
<SHARES-COMMON-PRIOR> 4,038,037
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,413,967
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 77,156,496
<NET-ASSETS> 232,499,225
<DIVIDEND-INCOME> 964,931
<INTEREST-INCOME> 93,163
<OTHER-INCOME> (1,123,697)
<EXPENSES-NET> 578,790
<NET-INVESTMENT-INCOME> (644,393)
<REALIZED-GAINS-CURRENT> 13,678,786
<APPREC-INCREASE-CURRENT> 33,488,238
<NET-CHANGE-FROM-OPS> 46,522,631
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 12,167,899
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 96,865,190
<NUMBER-OF-SHARES-REDEEMED> 41,910,764
<SHARES-REINVESTED> 11,421,974
<NET-CHANGE-IN-ASSETS> 100,731,132
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 1,104,819
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 625,519
<AVERAGE-NET-ASSETS> 177,480,264
<PER-SHARE-NAV-BEGIN> 32.63
<PER-SHARE-NII> (.11)
<PER-SHARE-GAIN-APPREC> 10.20
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 2.78
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 39.94
<EXPENSE-RATIO> 1.00
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>210
<NAME>INDEX FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 543,775,057
<INVESTMENTS-AT-VALUE> 786,419,771
<RECEIVABLES> 1,990,007
<ASSETS-OTHER> 17,317
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 788,427,095
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 4,221,682
<TOTAL-LIABILITIES> 4,221,682
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 533,652,960
<SHARES-COMMON-STOCK> 16,914,840
<SHARES-COMMON-PRIOR> 12,993,418
<ACCUMULATED-NII-CURRENT> 5,167,381
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,740,358
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 242,644,714
<NET-ASSETS> 784,205,413
<DIVIDEND-INCOME> 9,408,796
<INTEREST-INCOME> 1,259,434
<OTHER-INCOME> (928,305)
<EXPENSES-NET> 394,558
<NET-INVESTMENT-INCOME> 9,345,367
<REALIZED-GAINS-CURRENT> 16,642,265
<APPREC-INCREASE-CURRENT> 127,124,443
<NET-CHANGE-FROM-OPS> 153,112,075
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 9,056,077
<DISTRIBUTIONS-OF-GAINS> 48,844,415
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 316,712,289
<NUMBER-OF-SHARES-REDEEMED> 196,372,828
<SHARES-REINVESTED> 55,520,473
<NET-CHANGE-IN-ASSETS> 271,071,517
<ACCUMULATED-NII-PRIOR> 4,878,091
<ACCUMULATED-GAINS-PRIOR> 34,942,508
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,034,106
<AVERAGE-NET-ASSETS> 610,368,396
<PER-SHARE-NAV-BEGIN> 39.49
<PER-SHARE-NII> .58
<PER-SHARE-GAIN-APPREC> 10.74
<PER-SHARE-DIVIDEND> .65
<PER-SHARE-DISTRIBUTIONS> 3.80
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 46.36
<EXPENSE-RATIO> .25
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>222
<NAME>INCOME EQUITY FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 1,016,081,095
<INVESTMENTS-AT-VALUE> 1,356,426,685
<RECEIVABLES> 1,927,441
<ASSETS-OTHER> 17,318
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,358,371,444
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,457,133
<TOTAL-LIABILITIES> 1,457,133
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,008,842,590
<SHARES-COMMON-STOCK> 1,824,483
<SHARES-COMMON-PRIOR> 1,317,923
<ACCUMULATED-NII-CURRENT> 3,083,891
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 4,642,241
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 340,345,589
<NET-ASSETS> 1,356,914,311
<DIVIDEND-INCOME> 22,280,841
<INTEREST-INCOME> 862,070
<OTHER-INCOME> (5,145,601)
<EXPENSES-NET> 3,745,565
<NET-INVESTMENT-INCOME> 14,251,745
<REALIZED-GAINS-CURRENT> 12,683,426
<APPREC-INCREASE-CURRENT> 217,868,488
<NET-CHANGE-FROM-OPS> 244,803,659
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 804,582
<DISTRIBUTIONS-OF-GAINS> 1,048,454
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 25,802,002
<NUMBER-OF-SHARES-REDEEMED> 8,154,670
<SHARES-REINVESTED> 1,802,610
<NET-CHANGE-IN-ASSETS> 854,383,072
<ACCUMULATED-NII-PRIOR> 1,669,443
<ACCUMULATED-GAINS-PRIOR> 7,518,036
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 4,029,031
<AVERAGE-NET-ASSETS> 57,562,061
<PER-SHARE-NAV-BEGIN> 33.16
<PER-SHARE-NII> .52
<PER-SHARE-GAIN-APPREC> 8.77
<PER-SHARE-DIVIDEND> .54
<PER-SHARE-DISTRIBUTIONS> .72
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 41.19
<EXPENSE-RATIO> .85
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>223
<NAME>INCOME EQUITY FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 1,016,081,095
<INVESTMENTS-AT-VALUE> 1,356,426,685
<RECEIVABLES> 1,927,441
<ASSETS-OTHER> 17,318
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,358,371,444
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,457,133
<TOTAL-LIABILITIES> 1,457,133
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,008,842,590
<SHARES-COMMON-STOCK> 1,638,756
<SHARES-COMMON-PRIOR> 1,016,062
<ACCUMULATED-NII-CURRENT> 3,083,891
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 4,642,241
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 340,345,589
<NET-ASSETS> 1,356,914,311
<DIVIDEND-INCOME> 22,280,841
<INTEREST-INCOME> 862,070
<OTHER-INCOME> (5,145,601)
<EXPENSES-NET> 3,745,565
<NET-INVESTMENT-INCOME> 14,251,745
<REALIZED-GAINS-CURRENT> 12,683,426
<APPREC-INCREASE-CURRENT> 217,868,488
<NET-CHANGE-FROM-OPS> 244,803,659
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 283,201
<DISTRIBUTIONS-OF-GAINS> 850,000
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 26,991,385
<NUMBER-OF-SHARES-REDEEMED> 4,311,667
<SHARES-REINVESTED> 1,100,313
<NET-CHANGE-IN-ASSETS> 854,383,072
<ACCUMULATED-NII-PRIOR> 1,669,443
<ACCUMULATED-GAINS-PRIOR> 7,518,036
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 4,029,031
<AVERAGE-NET-ASSETS> 48,106,499
<PER-SHARE-NAV-BEGIN> 33.09
<PER-SHARE-NII> .24
<PER-SHARE-GAIN-APPREC> 8.75
<PER-SHARE-DIVIDEND> .24
<PER-SHARE-DISTRIBUTIONS> .72
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 41.12
<EXPENSE-RATIO> 1.60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>221
<NAME>INCOME EQUITY FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 1,016,081,095
<INVESTMENTS-AT-VALUE> 1,356,426,685
<RECEIVABLES> 1,927,441
<ASSETS-OTHER> 17,318
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,358,371,444
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,457,133
<TOTAL-LIABILITIES> 1,457,133
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,008,842,590
<SHARES-COMMON-STOCK> 29,487,952
<SHARES-COMMON-PRIOR> 12,822,741
<ACCUMULATED-NII-CURRENT> 3,083,891
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 4,642,241
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 340,345,589
<NET-ASSETS> 1,356,914,311
<DIVIDEND-INCOME> 22,280,841
<INTEREST-INCOME> 862,070
<OTHER-INCOME> (5,145,601)
<EXPENSES-NET> 3,745,565
<NET-INVESTMENT-INCOME> 14,251,745
<REALIZED-GAINS-CURRENT> 12,683,426
<APPREC-INCREASE-CURRENT> 217,868,488
<NET-CHANGE-FROM-OPS> 244,803,659
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 11,749,514
<DISTRIBUTIONS-OF-GAINS> 13,660,767
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,201,579,782
<NUMBER-OF-SHARES-REDEEMED> 618,279,412
<SHARES-REINVESTED> 11,445,588
<NET-CHANGE-IN-ASSETS> 854,383,072
<ACCUMULATED-NII-PRIOR> 1,669,443
<ACCUMULATED-GAINS-PRIOR> 7,518,036
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 4,029,031
<AVERAGE-NET-ASSETS> 917,928,922
<PER-SHARE-NAV-BEGIN> 33.16
<PER-SHARE-NII> .52
<PER-SHARE-GAIN-APPREC> 8.76
<PER-SHARE-DIVIDEND> .54
<PER-SHARE-DISTRIBUTIONS> .72
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 41.18
<EXPENSE-RATIO> .85
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>232
<NAME>INTERNATIONAL FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 230,045,859
<INVESTMENTS-AT-VALUE> 285,425,382
<RECEIVABLES> 151,367
<ASSETS-OTHER> 17,317
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 285,594,066
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 340,135
<TOTAL-LIABILITIES> 340,135
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 225,730,480
<SHARES-COMMON-STOCK> 140,185
<SHARES-COMMON-PRIOR> 103,425
<ACCUMULATED-NII-CURRENT> 1,993,474
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,150,454
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 55,379,523
<NET-ASSETS> 285,253,931
<DIVIDEND-INCOME> 3,564,097
<INTEREST-INCOME> 1,205,867
<OTHER-INCOME> (1,619,734)
<EXPENSES-NET> 2,027,788
<NET-INVESTMENT-INCOME> 1,122,442
<REALIZED-GAINS-CURRENT> 4,029,919
<APPREC-INCREASE-CURRENT> 21,976,707
<NET-CHANGE-FROM-OPS> 27,129,068
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 29,002
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,806,507
<NUMBER-OF-SHARES-REDEEMED> 1,002,906
<SHARES-REINVESTED> 28,988
<NET-CHANGE-IN-ASSETS> 52,794,619
<ACCUMULATED-NII-PRIOR> 2,442,797
<ACCUMULATED-GAINS-PRIOR> (1,096,618)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,046,519
<AVERAGE-NET-ASSETS> 2,891,840
<PER-SHARE-NAV-BEGIN> 21.66
<PER-SHARE-NII> .03
<PER-SHARE-GAIN-APPREC> 2.35
<PER-SHARE-DIVIDEND> .20
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 23.84
<EXPENSE-RATIO> 1.47
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>233
<NAME>INTERNATIONAL FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 230,045,859
<INVESTMENTS-AT-VALUE> 285,425,382
<RECEIVABLES> 151,367
<ASSETS-OTHER> 17,317
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 285,594,066
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 340,135
<TOTAL-LIABILITIES> 340,135
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 225,730,480
<SHARES-COMMON-STOCK> 94,749
<SHARES-COMMON-PRIOR> 77,359
<ACCUMULATED-NII-CURRENT> 1,993,474
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,150,454
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 55,379,523
<NET-ASSETS> 285,253,931
<DIVIDEND-INCOME> 3,564,097
<INTEREST-INCOME> 1,205,867
<OTHER-INCOME> (1,619,734)
<EXPENSES-NET> 2,027,788
<NET-INVESTMENT-INCOME> 1,122,442
<REALIZED-GAINS-CURRENT> 4,029,919
<APPREC-INCREASE-CURRENT> 21,976,707
<NET-CHANGE-FROM-OPS> 27,129,068
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 6,111
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 571,189
<NUMBER-OF-SHARES-REDEEMED> 197,871
<SHARES-REINVESTED> 6,031
<NET-CHANGE-IN-ASSETS> 52,794,619
<ACCUMULATED-NII-PRIOR> 2,442,797
<ACCUMULATED-GAINS-PRIOR> (1,096,618)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,046,519
<AVERAGE-NET-ASSETS> 1,950,077
<PER-SHARE-NAV-BEGIN> 21.55
<PER-SHARE-NII> (.09)
<PER-SHARE-GAIN-APPREC> 2.31
<PER-SHARE-DIVIDEND> .07
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 23.70
<EXPENSE-RATIO> 2.22
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>231
<NAME>INTERNATIONAL FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 230,045,859
<INVESTMENTS-AT-VALUE> 285,425,382
<RECEIVABLES> 151,367
<ASSETS-OTHER> 17,317
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 285,594,066
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 340,135
<TOTAL-LIABILITIES> 340,135
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 225,730,480
<SHARES-COMMON-STOCK> 11,724,494
<SHARES-COMMON-PRIOR> 10,546,701
<ACCUMULATED-NII-CURRENT> 1,993,474
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,150,454
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 55,379,523
<NET-ASSETS> 285,253,931
<DIVIDEND-INCOME> 3,564,097
<INTEREST-INCOME> 1,205,867
<OTHER-INCOME> (1,619,734)
<EXPENSES-NET> 2,027,788
<NET-INVESTMENT-INCOME> 1,122,442
<REALIZED-GAINS-CURRENT> 4,029,919
<APPREC-INCREASE-CURRENT> 21,976,707
<NET-CHANGE-FROM-OPS> 27,129,068
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2,248,551
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 63,830,151
<NUMBER-OF-SHARES-REDEEMED> 38,737,239
<SHARES-REINVESTED> 1,644,365
<NET-CHANGE-IN-ASSETS> 52,794,619
<ACCUMULATED-NII-PRIOR> 2,442,797
<ACCUMULATED-GAINS-PRIOR> (1,096,618)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,046,519
<AVERAGE-NET-ASSETS> 249,330,135
<PER-SHARE-NAV-BEGIN> 21.67
<PER-SHARE-NII> .09
<PER-SHARE-GAIN-APPREC> 2.29
<PER-SHARE-DIVIDEND> .20
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 23.85
<EXPENSE-RATIO> 1.47
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>242
<NAME>GROWTH EQUITY FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 775,275,086
<INVESTMENTS-AT-VALUE> 1,072,476,937
<RECEIVABLES> 2,010,271
<ASSETS-OTHER> 17,317
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,074,504,525
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,071,525
<TOTAL-LIABILITIES> 3,071,525
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 728,905,416
<SHARES-COMMON-STOCK> 603,693
<SHARES-COMMON-PRIOR> 435,432
<ACCUMULATED-NII-CURRENT> 188,975
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 45,136,758
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 297,201,851
<NET-ASSETS> 1,071,433,000
<DIVIDEND-INCOME> 8,657,228
<INTEREST-INCOME> 2,538,706
<OTHER-INCOME> (7,475,200)
<EXPENSES-NET> 4,923,213
<NET-INVESTMENT-INCOME> (1,202,479)
<REALIZED-GAINS-CURRENT> 124,921,732
<APPREC-INCREASE-CURRENT> 79,116,165
<NET-CHANGE-FROM-OPS> 202,835,418
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 21,720
<DISTRIBUTIONS-OF-GAINS> 1,880,012
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 8,477,025
<NUMBER-OF-SHARES-REDEEMED> 4,689,355
<SHARES-REINVESTED> 1,889,663
<NET-CHANGE-IN-ASSETS> 153,153,781
<ACCUMULATED-NII-PRIOR> 1,234,050
<ACCUMULATED-GAINS-PRIOR> 19,630,401
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 6,013,051
<AVERAGE-NET-ASSETS> 18,909,172
<PER-SHARE-NAV-BEGIN> 32.49
<PER-SHARE-NII> (.06)
<PER-SHARE-GAIN-APPREC> 6.88
<PER-SHARE-DIVIDEND> (.04)
<PER-SHARE-DISTRIBUTIONS> 3.54
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 35.73
<EXPENSE-RATIO> 1.25
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>243
<NAME>GROWTH EQUITY FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 775,275,086
<INVESTMENTS-AT-VALUE> 1,072,476,937
<RECEIVABLES> 2,010,271
<ASSETS-OTHER> 17,317
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,074,504,525
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,071,525
<TOTAL-LIABILITIES> 3,071,525
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 728,905,416
<SHARES-COMMON-STOCK> 471,669
<SHARES-COMMON-PRIOR> 269,957
<ACCUMULATED-NII-CURRENT> 188,975
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 45,136,758
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 297,201,851
<NET-ASSETS> 1,071,433,000
<DIVIDEND-INCOME> 8,657,228
<INTEREST-INCOME> 2,538,706
<OTHER-INCOME> (7,475,200)
<EXPENSES-NET> 4,923,213
<NET-INVESTMENT-INCOME> (1,202,479)
<REALIZED-GAINS-CURRENT> 124,921,732
<APPREC-INCREASE-CURRENT> 79,116,165
<NET-CHANGE-FROM-OPS> 202,835,418
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 1,221,598
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 7,062,682
<NUMBER-OF-SHARES-REDEEMED> 1,402,259
<SHARES-REINVESTED> 1,216,596
<NET-CHANGE-IN-ASSETS> 153,153,781
<ACCUMULATED-NII-PRIOR> 1,234,050
<ACCUMULATED-GAINS-PRIOR> 19,630,401
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 6,013,051
<AVERAGE-NET-ASSETS> 12,442,925
<PER-SHARE-NAV-BEGIN> 32.28
<PER-SHARE-NII> (.23)
<PER-SHARE-GAIN-APPREC> 6.72
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 3.54
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 35.23
<EXPENSE-RATIO> 2.00
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>241
<NAME>GROWTH EQUITY FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 775,275,086
<INVESTMENTS-AT-VALUE> 1,072,476,937
<RECEIVABLES> 2,010,271
<ASSETS-OTHER> 17,317
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,074,504,525
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,071,525
<TOTAL-LIABILITIES> 3,071,525
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 728,905,416
<SHARES-COMMON-STOCK> 28,923,928
<SHARES-COMMON-PRIOR> 27,564,448
<ACCUMULATED-NII-CURRENT> 188,975
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 45,136,758
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 297,201,851
<NET-ASSETS> 1,071,433,000
<DIVIDEND-INCOME> 8,657,228
<INTEREST-INCOME> 2,538,706
<OTHER-INCOME> (7,475,200)
<EXPENSES-NET> 4,923,213
<NET-INVESTMENT-INCOME> (1,202,479)
<REALIZED-GAINS-CURRENT> 124,921,732
<APPREC-INCREASE-CURRENT> 79,116,165
<NET-CHANGE-FROM-OPS> 202,835,418
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,101,414
<DISTRIBUTIONS-OF-GAINS> 95,402,591
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 203,089,698
<NUMBER-OF-SHARES-REDEEMED> 262,005,626
<SHARES-REINVESTED> 96,307,274
<NET-CHANGE-IN-ASSETS> 153,153,781
<ACCUMULATED-NII-PRIOR> 1,234,050
<ACCUMULATED-GAINS-PRIOR> 19,630,401
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 6,013,051
<AVERAGE-NET-ASSETS> 985,915,446
<PER-SHARE-NAV-BEGIN> 32.48
<PER-SHARE-NII> (.04)
<PER-SHARE-GAIN-APPREC> 6.86
<PER-SHARE-DIVIDEND> .04
<PER-SHARE-DISTRIBUTIONS> 3.54
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 35.72
<EXPENSE-RATIO> 1.25
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>252
<NAME>DIVERSIFIED EQUITY FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 1,036,588,753
<INVESTMENTS-AT-VALUE> 1,663,203,513
<RECEIVABLES> 1,698,934
<ASSETS-OTHER> 17,317
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,664,919,764
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6,679,333
<TOTAL-LIABILITIES> 6,679,333
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,001,823,383
<SHARES-COMMON-STOCK> 1,308,622
<SHARES-COMMON-PRIOR> 692,261
<ACCUMULATED-NII-CURRENT> 6,542,972
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 23,259,316
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 626,614,760
<NET-ASSETS> 1,658,240,431
<DIVIDEND-INCOME> 20,472,824
<INTEREST-INCOME> 2,838,104
<OTHER-INCOME> (7,764,165)
<EXPENSES-NET> 7,071,481
<NET-INVESTMENT-INCOME> 8,475,282
<REALIZED-GAINS-CURRENT> 90,735,628
<APPREC-INCREASE-CURRENT> 236,638,160
<NET-CHANGE-FROM-OPS> 335,849,070
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 276,764
<DISTRIBUTIONS-OF-GAINS> 2,253,590
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 27,277,888
<NUMBER-OF-SHARES-REDEEMED> 4,847,852
<SHARES-REINVESTED> 2,508,624
<NET-CHANGE-IN-ASSETS> 386,533,919
<ACCUMULATED-NII-PRIOR> 7,152,297
<ACCUMULATED-GAINS-PRIOR> 17,020,749
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 9,146,269
<AVERAGE-NET-ASSETS> 40,008,798
<PER-SHARE-NAV-BEGIN> 36.51
<PER-SHARE-NII> .16
<PER-SHARE-GAIN-APPREC> 8.99
<PER-SHARE-DIVIDEND> .27
<PER-SHARE-DISTRIBUTIONS> 2.33
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 43.06
<EXPENSE-RATIO> 1.00
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>253
<NAME>DIVERSIFIED EQUITY FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 1,036,588,753
<INVESTMENTS-AT-VALUE> 1,663,203,513
<RECEIVABLES> 1,698,934
<ASSETS-OTHER> 17,317
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,664,919,764
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6,679,333
<TOTAL-LIABILITIES> 6,679,333
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,001,823,383
<SHARES-COMMON-STOCK> 1,910,091
<SHARES-COMMON-PRIOR> 932,891
<ACCUMULATED-NII-CURRENT> 6,542,972
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 23,259,316
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 626,614,760
<NET-ASSETS> 1,658,240,431
<DIVIDEND-INCOME> 20,472,824
<INTEREST-INCOME> 2,838,104
<OTHER-INCOME> (7,764,165)
<EXPENSES-NET> 7,071,481
<NET-INVESTMENT-INCOME> 8,475,282
<REALIZED-GAINS-CURRENT> 90,735,628
<APPREC-INCREASE-CURRENT> 236,638,160
<NET-CHANGE-FROM-OPS> 335,849,070
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 113,973
<DISTRIBUTIONS-OF-GAINS> 3,232,355
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 41,099,564
<NUMBER-OF-SHARES-REDEEMED> 5,131,550
<SHARES-REINVESTED> 3,272,867
<NET-CHANGE-IN-ASSETS> 386,533,919
<ACCUMULATED-NII-PRIOR> 7,152,297
<ACCUMULATED-GAINS-PRIOR> 17,020,749
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 9,146,269
<AVERAGE-NET-ASSETS> 56,735,508
<PER-SHARE-NAV-BEGIN> 36.31
<PER-SHARE-NII> .06
<PER-SHARE-GAIN-APPREC> 8.85
<PER-SHARE-DIVIDEND> .08
<PER-SHARE-DISTRIBUTIONS> 2.33
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 42.69
<EXPENSE-RATIO> 1.75
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>251
<NAME>DIVERSIFIED EQUITY FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 1,036,588,753
<INVESTMENTS-AT-VALUE> 1,663,203,513
<RECEIVABLES> 1,698,934
<ASSETS-OTHER> 17,317
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,664,919,764
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6,679,333
<TOTAL-LIABILITIES> 6,679,333
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,001,823,383
<SHARES-COMMON-STOCK> 35,309,777
<SHARES-COMMON-PRIOR> 33,218,060
<ACCUMULATED-NII-CURRENT> 6,542,972
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 23,259,316
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 626,614,760
<NET-ASSETS> 1,658,240,431
<DIVIDEND-INCOME> 20,472,824
<INTEREST-INCOME> 2,838,104
<OTHER-INCOME> (7,764,165)
<EXPENSES-NET> 7,071,481
<NET-INVESTMENT-INCOME> 8,475,282
<REALIZED-GAINS-CURRENT> 90,735,628
<APPREC-INCREASE-CURRENT> 236,638,160
<NET-CHANGE-FROM-OPS> 335,849,070
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 9,474,703
<DISTRIBUTIONS-OF-GAINS> 78,384,186
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 309,400,646
<NUMBER-OF-SHARES-REDEEMED> 315,851,888
<SHARES-REINVESTED> 86,692,121
<NET-CHANGE-IN-ASSETS> 386,533,919
<ACCUMULATED-NII-PRIOR> 7,152,297
<ACCUMULATED-GAINS-PRIOR> 17,020,749
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 9,146,269
<AVERAGE-NET-ASSETS> 1,392,724,211
<PER-SHARE-NAV-BEGIN> 36.50
<PER-SHARE-NII> .22
<PER-SHARE-GAIN-APPREC> 8.94
<PER-SHARE-DIVIDEND> .27
<PER-SHARE-DISTRIBUTIONS> 2.33
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 43.06
<EXPENSE-RATIO> 1.00
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>260
<NAME>DIVERSIFIED BOND FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 129,059,732
<INVESTMENTS-AT-VALUE> 134,009,318
<RECEIVABLES> 940,633
<ASSETS-OTHER> 17,317
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 134,967,268
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 136,494
<TOTAL-LIABILITIES> 136,494
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 122,936,988
<SHARES-COMMON-STOCK> 4,988,168
<SHARES-COMMON-PRIOR> 6,340,340
<ACCUMULATED-NII-CURRENT> 4,469,507
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,474,693
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,949,586
<NET-ASSETS> 134,830,774
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 10,032,656
<OTHER-INCOME> (606,075)
<EXPENSES-NET> 412,340
<NET-INVESTMENT-INCOME> 9,014,241
<REALIZED-GAINS-CURRENT> 3,385,362
<APPREC-INCREASE-CURRENT> 5,676,343
<NET-CHANGE-FROM-OPS> 18,075,946
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 10,590,089
<DISTRIBUTIONS-OF-GAINS> 174,937
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 59,376,015
<NUMBER-OF-SHARES-REDEEMED> 104,635,641
<SHARES-REINVESTED> 10,469,707
<NET-CHANGE-IN-ASSETS> (34,789,919)
<ACCUMULATED-NII-PRIOR> 6,088,052
<ACCUMULATED-GAINS-PRIOR> (782,633)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 900,999
<AVERAGE-NET-ASSETS> 150,789,283
<PER-SHARE-NAV-BEGIN> 25.60
<PER-SHARE-NII> 1.61
<PER-SHARE-GAIN-APPREC> 1.51
<PER-SHARE-DIVIDEND> 1.66
<PER-SHARE-DISTRIBUTIONS> .03
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 27.03
<EXPENSE-RATIO> .70
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>272
<NAME>INTERMEDIATE GOVERNMENT INCOME FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 409,456,642
<INVESTMENTS-AT-VALUE> 418,507,833
<RECEIVABLES> 5,177,642
<ASSETS-OTHER> 111,353,667
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 535,039,142
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 112,091,387
<TOTAL-LIABILITIES> 112,091,387
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 440,239,981
<SHARES-COMMON-STOCK> 1,276,727
<SHARES-COMMON-PRIOR> 1,202,891
<ACCUMULATED-NII-CURRENT> 436,911
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (26,780,328)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 9,051,191
<NET-ASSETS> 422,947,755
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 27,933,414
<OTHER-INCOME> 78,101
<EXPENSES-NET> 2,775,230
<NET-INVESTMENT-INCOME> 25,236,285
<REALIZED-GAINS-CURRENT> 590,854
<APPREC-INCREASE-CURRENT> 12,638,932
<NET-CHANGE-FROM-OPS> 38,466,071
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 728,517
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4,221,460
<NUMBER-OF-SHARES-REDEEMED> 3,988,483
<SHARES-REINVESTED> 533,971
<NET-CHANGE-IN-ASSETS> 29,661,584
<ACCUMULATED-NII-PRIOR> 10,583
<ACCUMULATED-GAINS-PRIOR> (27,375,145)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,315,676
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3,004,746
<AVERAGE-NET-ASSETS> 12,838,319
<PER-SHARE-NAV-BEGIN> 10.84
<PER-SHARE-NII> .77
<PER-SHARE-GAIN-APPREC> .31
<PER-SHARE-DIVIDEND> .70
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.22
<EXPENSE-RATIO> .68
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>273
<NAME>INTERMEDIATE GOVERNMENT INCOME FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 409,456,642
<INVESTMENTS-AT-VALUE> 418,507,833
<RECEIVABLES> 5,177,642
<ASSETS-OTHER> 111,353,667
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 535,039,142
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 112,091,387
<TOTAL-LIABILITIES> 112,091,387
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 440,239,981
<SHARES-COMMON-STOCK> 738,111
<SHARES-COMMON-PRIOR> 828,046
<ACCUMULATED-NII-CURRENT> 436,911
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (26,780,328)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 9,051,191
<NET-ASSETS> 422,947,755
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 27,933,414
<OTHER-INCOME> 78,101
<EXPENSES-NET> 2,775,230
<NET-INVESTMENT-INCOME> 25,236,285
<REALIZED-GAINS-CURRENT> 590,854
<APPREC-INCREASE-CURRENT> 12,638,932
<NET-CHANGE-FROM-OPS> 38,466,071
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 425,732
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,494,445
<NUMBER-OF-SHARES-REDEEMED> 2,847,150
<SHARES-REINVESTED> 302,863
<NET-CHANGE-IN-ASSETS> 29,661,584
<ACCUMULATED-NII-PRIOR> 10,583
<ACCUMULATED-GAINS-PRIOR> (27,375,145)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,315,676
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3,004,746
<AVERAGE-NET-ASSETS> 8,616,668
<PER-SHARE-NAV-BEGIN> 10.83
<PER-SHARE-NII> .69
<PER-SHARE-GAIN-APPREC> .31
<PER-SHARE-DIVIDEND> .62
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.21
<EXPENSE-RATIO> 1.43
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>271
<NAME>INTERMEDIATE GOVERNMENT INCOME FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 409,456,642
<INVESTMENTS-AT-VALUE> 418,507,833
<RECEIVABLES> 5,177,642
<ASSETS-OTHER> 111,353,667
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 535,039,142
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 112,091,387
<TOTAL-LIABILITIES> 112,091,387
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 440,239,981
<SHARES-COMMON-STOCK> 35,666,858
<SHARES-COMMON-PRIOR> 34,242,058
<ACCUMULATED-NII-CURRENT> 436,911
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (26,780,328)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 9,051,191
<NET-ASSETS> 422,947,755
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 27,933,414
<OTHER-INCOME> 78,101
<EXPENSES-NET> 2,775,230
<NET-INVESTMENT-INCOME> 25,236,285
<REALIZED-GAINS-CURRENT> 590,854
<APPREC-INCREASE-CURRENT> 12,638,932
<NET-CHANGE-FROM-OPS> 38,466,071
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 23,651,745
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 309,607,835
<NUMBER-OF-SHARES-REDEEMED> 295,827,903
<SHARES-REINVESTED> 2,504,469
<NET-CHANGE-IN-ASSETS> 29,661,584
<ACCUMULATED-NII-PRIOR> 10,583
<ACCUMULATED-GAINS-PRIOR> (27,375,145)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,315,676
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3,004,746
<AVERAGE-NET-ASSETS> 377,234,801
<PER-SHARE-NAV-BEGIN> 10.84
<PER-SHARE-NII> .71
<PER-SHARE-GAIN-APPREC> .37
<PER-SHARE-DIVIDEND> .70
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.22
<EXPENSE-RATIO> .68
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>280
<NAME>STRATEGIC INCOME FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 212,814,996
<INVESTMENTS-AT-VALUE> 235,729,223
<RECEIVABLES> 365,473
<ASSETS-OTHER> 17,317
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 236,112,013
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 858,176
<TOTAL-LIABILITIES> 858,176
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 204,844,526
<SHARES-COMMON-STOCK> 12,026,676
<SHARES-COMMON-PRIOR> 6,973,107
<ACCUMULATED-NII-CURRENT> 5,557,090
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,937,994
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 22,914,227
<NET-ASSETS> 235,253,837
<DIVIDEND-INCOME> 597,402
<INTEREST-INCOME> 8,824,834
<OTHER-INCOME> (710,348)
<EXPENSES-NET> 688,594
<NET-INVESTMENT-INCOME> 8,023,294
<REALIZED-GAINS-CURRENT> 4,184,600
<APPREC-INCREASE-CURRENT> 10,832,943
<NET-CHANGE-FROM-OPS> 23,040,837
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 6,121,616
<DISTRIBUTIONS-OF-GAINS> 4,067,109
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 145,673,252
<NUMBER-OF-SHARES-REDEEMED> 62,155,767
<SHARES-REINVESTED> 10,107,735
<NET-CHANGE-IN-ASSETS> 106,477,332
<ACCUMULATED-NII-PRIOR> 3,648,779
<ACCUMULATED-GAINS-PRIOR> 1,818,810
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,094,661
<AVERAGE-NET-ASSETS> 179,386,122
<PER-SHARE-NAV-BEGIN> 18.47
<PER-SHARE-NII> .79
<PER-SHARE-GAIN-APPREC> 1.75
<PER-SHARE-DIVIDEND> .86
<PER-SHARE-DISTRIBUTIONS> .59
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 19.56
<EXPENSE-RATIO> .80
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>290
<NAME>MODERATE BALANCED FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 370,612,330
<INVESTMENTS-AT-VALUE> 466,111,451
<RECEIVABLES> 289,077
<ASSETS-OTHER> 17,317
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 466,417,845
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,034,110
<TOTAL-LIABILITIES> 2,034,110
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 353,522,130
<SHARES-COMMON-STOCK> 20,208,229
<SHARES-COMMON-PRIOR> 19,390,986
<ACCUMULATED-NII-CURRENT> 9,151,144
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 6,211,340
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 95,499,121
<NET-ASSETS> 464,383,735
<DIVIDEND-INCOME> 2,540,292
<INTEREST-INCOME> 16,585,871
<OTHER-INCOME> (1,931,895)
<EXPENSES-NET> 1,761,355
<NET-INVESTMENT-INCOME> 15,432,913
<REALIZED-GAINS-CURRENT> 17,195,477
<APPREC-INCREASE-CURRENT> 34,970,001
<NET-CHANGE-FROM-OPS> 67,598,391
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 16,103,820
<DISTRIBUTIONS-OF-GAINS> 22,560,420
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 121,048,882
<NUMBER-OF-SHARES-REDEEMED> 142,872,183
<SHARES-REINVESTED> 38,592,648
<NET-CHANGE-IN-ASSETS> 45,703,498
<ACCUMULATED-NII-PRIOR> 9,730,043
<ACCUMULATED-GAINS-PRIOR> 11,639,743
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,512,391
<AVERAGE-NET-ASSETS> 432,190,308
<PER-SHARE-NAV-BEGIN> 21.59
<PER-SHARE-NII> .80
<PER-SHARE-GAIN-APPREC> 2.72
<PER-SHARE-DIVIDEND> .86
<PER-SHARE-DISTRIBUTIONS> 1.27
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 22.98
<EXPENSE-RATIO> .88
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>300
<NAME>GROWTH BALANCED FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 485,236,203
<INVESTMENTS-AT-VALUE> 666,128,529
<RECEIVABLES> 504,188
<ASSETS-OTHER> 17,317
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 666,650,034
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 892,079
<TOTAL-LIABILITIES> 892,079
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 467,280,720
<SHARES-COMMON-STOCK> 23,726,741
<SHARES-COMMON-PRIOR> 20,319,060
<ACCUMULATED-NII-CURRENT> 7,652,666
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 9,932,243
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 180,892,326
<NET-ASSETS> 665,757,955
<DIVIDEND-INCOME> 5,313,422
<INTEREST-INCOME> 13,867,878
<OTHER-INCOME> (2,813,887)
<EXPENSES-NET> 2,447,265
<NET-INVESTMENT-INCOME> 13,920,148
<REALIZED-GAINS-CURRENT> 28,958,690
<APPREC-INCREASE-CURRENT> 67,300,551
<NET-CHANGE-FROM-OPS> 110,179,389
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 13,409,934
<DISTRIBUTIONS-OF-GAINS> 25,716,573
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 173,888,398
<NUMBER-OF-SHARES-REDEEMED> 121,587,427
<SHARES-REINVESTED> 39,022,268
<NET-CHANGE-IN-ASSETS> 162,376,121
<ACCUMULATED-NII-PRIOR> 6,915,443
<ACCUMULATED-GAINS-PRIOR> 6,864,912
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3,389,912
<AVERAGE-NET-ASSETS> 583,852,953
<PER-SHARE-NAV-BEGIN> 24.77
<PER-SHARE-NII> .58
<PER-SHARE-GAIN-APPREC> 4.52
<PER-SHARE-DIVIDEND> .60
<PER-SHARE-DISTRIBUTIONS> 1.21
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 28.06
<EXPENSE-RATIO> .93
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>312
<NAME>STABLE INCOME FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 153,173,297
<INVESTMENTS-AT-VALUE> 153,327,732
<RECEIVABLES> 1,578,152
<ASSETS-OTHER> 17,317
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 154,923,201
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 330,791
<TOTAL-LIABILITIES> 330,791
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 161,290,620
<SHARES-COMMON-STOCK> 830,463
<SHARES-COMMON-PRIOR> 1,215,647
<ACCUMULATED-NII-CURRENT> 201,603
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (7,054,248)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 154,435
<NET-ASSETS> 154,592,410
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 8,575,225
<OTHER-INCOME> (486,453)
<EXPENSES-NET> 385,703
<NET-INVESTMENT-INCOME> 7,703,069
<REALIZED-GAINS-CURRENT> 180,042
<APPREC-INCREASE-CURRENT> 280,340
<NET-CHANGE-FROM-OPS> 8,163,451
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 506,395
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 29,800,927
<NUMBER-OF-SHARES-REDEEMED> 33,964,911
<SHARES-REINVESTED> 210,983
<NET-CHANGE-IN-ASSETS> 30,054,604
<ACCUMULATED-NII-PRIOR> 18,567
<ACCUMULATED-GAINS-PRIOR> (7,288,543)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 557,545
<AVERAGE-NET-ASSETS> 9,216,135
<PER-SHARE-NAV-BEGIN> 10.24
<PER-SHARE-NII> .58
<PER-SHARE-GAIN-APPREC> .06
<PER-SHARE-DIVIDEND> .57
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.31
<EXPENSE-RATIO> .65
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>313
<NAME>STABLE INCOME FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 153,173,297
<INVESTMENTS-AT-VALUE> 153,327,732
<RECEIVABLES> 1,578,152
<ASSETS-OTHER> 17,317
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 154,923,201
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 330,791
<TOTAL-LIABILITIES> 330,791
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 161,290,620
<SHARES-COMMON-STOCK> 176,371
<SHARES-COMMON-PRIOR> 103,170
<ACCUMULATED-NII-CURRENT> 201,603
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (7,054,248)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 154,435
<NET-ASSETS> 154,592,410
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 8,575,225
<OTHER-INCOME> (486,453)
<EXPENSES-NET> 385,703
<NET-INVESTMENT-INCOME> 7,703,069
<REALIZED-GAINS-CURRENT> 180,042
<APPREC-INCREASE-CURRENT> 280,340
<NET-CHANGE-FROM-OPS> 8,163,451
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 68,901
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,235,385
<NUMBER-OF-SHARES-REDEEMED> 539,946
<SHARES-REINVESTED> 58,778
<NET-CHANGE-IN-ASSETS> 30,054,604
<ACCUMULATED-NII-PRIOR> 18,567
<ACCUMULATED-GAINS-PRIOR> (7,288,543)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 557,545
<AVERAGE-NET-ASSETS> 1,425,314
<PER-SHARE-NAV-BEGIN> 10.24
<PER-SHARE-NII> .51
<PER-SHARE-GAIN-APPREC> .04
<PER-SHARE-DIVIDEND> .49
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.30
<EXPENSE-RATIO> 1.40
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>311
<NAME>STABLE INCOME FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 153,173,297
<INVESTMENTS-AT-VALUE> 153,327,732
<RECEIVABLES> 1,578,152
<ASSETS-OTHER> 17,317
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 154,923,201
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 330,791
<TOTAL-LIABILITIES> 330,791
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 161,290,620
<SHARES-COMMON-STOCK> 13,997,290
<SHARES-COMMON-PRIOR> 10,843,673
<ACCUMULATED-NII-CURRENT> 201,603
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (7,054,248)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 154,435
<NET-ASSETS> 154,592,410
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 8,575,225
<OTHER-INCOME> (486,453)
<EXPENSES-NET> 385,703
<NET-INVESTMENT-INCOME> 7,703,069
<REALIZED-GAINS-CURRENT> 180,042
<APPREC-INCREASE-CURRENT> 280,340
<NET-CHANGE-FROM-OPS> 8,163,451
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 6,890,484
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 81,486,735
<NUMBER-OF-SHARES-REDEEMED> 54,681,772
<SHARES-REINVESTED> 5,750,754
<NET-CHANGE-IN-ASSETS> 30,054,604
<ACCUMULATED-NII-PRIOR> 18,567
<ACCUMULATED-GAINS-PRIOR> (7,288,543)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 557,545
<AVERAGE-NET-ASSETS> 124,883,214
<PER-SHARE-NAV-BEGIN> 10.24
<PER-SHARE-NII> .58
<PER-SHARE-GAIN-APPREC> .05
<PER-SHARE-DIVIDEND> .57
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.30
<EXPENSE-RATIO> .65
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>322
<NAME>SMALL CAP OPPORTUNITIES FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 267,193,672
<INVESTMENTS-AT-VALUE> 297,850,970
<RECEIVABLES> 387,898
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 298,238,868
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 401,964
<TOTAL-LIABILITIES> 401,964
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 266,933,221
<SHARES-COMMON-STOCK> 291,083
<SHARES-COMMON-PRIOR> 26,334
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 246,385
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 30,657,298
<NET-ASSETS> 297,836,904
<DIVIDEND-INCOME> 1,071,914
<INTEREST-INCOME> 579,354
<OTHER-INCOME> (1,460,534)
<EXPENSES-NET> 982,333
<NET-INVESTMENT-INCOME> (791,599)
<REALIZED-GAINS-CURRENT> 4,160,372
<APPREC-INCREASE-CURRENT> 23,475,868
<NET-CHANGE-FROM-OPS> 26,844,641
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 76,723
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 6,586,891
<NUMBER-OF-SHARES-REDEEMED> 440,970
<SHARES-REINVESTED> 76,078
<NET-CHANGE-IN-ASSETS> 219,982,553
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 560,601
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,272,739
<AVERAGE-NET-ASSETS> 3,169,733
<PER-SHARE-NAV-BEGIN> 19.83
<PER-SHARE-NII> (.07)
<PER-SHARE-GAIN-APPREC> 4.37
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> .53
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 23.60
<EXPENSE-RATIO> 1.27
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>323
<NAME>SMALL CAP OPPORTUNITIES FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 267,193,672
<INVESTMENTS-AT-VALUE> 297,850,970
<RECEIVABLES> 387,898
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 298,238,868
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 401,964
<TOTAL-LIABILITIES> 401,964
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 266,933,221
<SHARES-COMMON-STOCK> 263,316
<SHARES-COMMON-PRIOR> 7,999
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 246,385
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 30,657,298
<NET-ASSETS> 297,836,904
<DIVIDEND-INCOME> 1,071,914
<INTEREST-INCOME> 579,354
<OTHER-INCOME> (1,460,534)
<EXPENSES-NET> 982,333
<NET-INVESTMENT-INCOME> (791,599)
<REALIZED-GAINS-CURRENT> 4,160,372
<APPREC-INCREASE-CURRENT> 23,475,868
<NET-CHANGE-FROM-OPS> 26,844,641
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 45,659
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 6,098,057
<NUMBER-OF-SHARES-REDEEMED> 167,823
<SHARES-REINVESTED> 46,101
<NET-CHANGE-IN-ASSETS> 219,982,553
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 560,601
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,272,739
<AVERAGE-NET-ASSETS> 2,255,822
<PER-SHARE-NAV-BEGIN> 19.75
<PER-SHARE-NII> (.05)
<PER-SHARE-GAIN-APPREC> 4.15
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> .53
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 23.32
<EXPENSE-RATIO> 2.02
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>321
<NAME>SMALL CAP OPPORTUNITIES FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 267,193,672
<INVESTMENTS-AT-VALUE> 297,850,970
<RECEIVABLES> 387,898
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 298,238,868
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 401,964
<TOTAL-LIABILITIES> 401,964
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 266,933,221
<SHARES-COMMON-STOCK> 12,066,360
<SHARES-COMMON-PRIOR> 3,890,717
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 246,385
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 30,657,298
<NET-ASSETS> 297,836,904
<DIVIDEND-INCOME> 1,071,914
<INTEREST-INCOME> 579,354
<OTHER-INCOME> (1,460,534)
<EXPENSES-NET> 982,333
<NET-INVESTMENT-INCOME> (791,599)
<REALIZED-GAINS-CURRENT> 4,160,372
<APPREC-INCREASE-CURRENT> 23,475,868
<NET-CHANGE-FROM-OPS> 26,844,641
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 4,293,143
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 222,106,855
<NUMBER-OF-SHARES-REDEEMED> 40,249,596
<SHARES-REINVESTED> 3,497,844
<NET-CHANGE-IN-ASSETS> 219,982,553
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 560,601
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,272,739
<AVERAGE-NET-ASSETS> 188,518,888
<PER-SHARE-NAV-BEGIN> 19.84
<PER-SHARE-NII> (.06)
<PER-SHARE-GAIN-APPREC> 4.36
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> .53
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 23.61
<EXPENSE-RATIO> 1.25
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>430
<NAME>AGGRESSIVE BALANCED EQUITY FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> DEC-02-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 8,457,459
<INVESTMENTS-AT-VALUE> 8,820,858
<RECEIVABLES> 50,229
<ASSETS-OTHER> 12,226
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 8,883,313
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 11,444
<TOTAL-LIABILITIES> 11,444
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 8,483,035
<SHARES-COMMON-STOCK> 803,338
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 35,981
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (10,546)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 363,399
<NET-ASSETS> 8,871,869
<DIVIDEND-INCOME> 28,853
<INTEREST-INCOME> 32,911
<OTHER-INCOME> (12,133)
<EXPENSES-NET> 11,357
<NET-INVESTMENT-INCOME> 38,274
<REALIZED-GAINS-CURRENT> (12,436)
<APPREC-INCREASE-CURRENT> 363,399
<NET-CHANGE-FROM-OPS> 389,237
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,203
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 10,402,991
<NUMBER-OF-SHARES-REDEEMED> 1,920,359
<SHARES-REINVESTED> 1,203
<NET-CHANGE-IN-ASSETS> 8,871,869
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 42,448
<AVERAGE-NET-ASSETS> 4,874,745
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .06
<PER-SHARE-GAIN-APPREC> .99
<PER-SHARE-DIVIDEND> .01
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.04
<EXPENSE-RATIO> 1.00
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>440
<NAME>DIVERSIFIED SMALL CAP FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> DEC-31-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 12,556,265
<INVESTMENTS-AT-VALUE> 12,366,643
<RECEIVABLES> 222,754
<ASSETS-OTHER> 3,191
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 12,592,588
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 41,423
<TOTAL-LIABILITIES> 41,423
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 12,830,921
<SHARES-COMMON-STOCK> 1,192,923
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 2,549
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (92,683)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (189,622)
<NET-ASSETS> 12,551,165
<DIVIDEND-INCOME> 14,952
<INTEREST-INCOME> 6,373
<OTHER-INCOME> (20,678)
<EXPENSES-NET> 6,378
<NET-INVESTMENT-INCOME> (5,731)
<REALIZED-GAINS-CURRENT> (98,200)
<APPREC-INCREASE-CURRENT> (189,624)
<NET-CHANGE-FROM-OPS> (293,555)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 14,057,810
<NUMBER-OF-SHARES-REDEEMED> 1,213,090
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 12,551,165
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 39,311
<AVERAGE-NET-ASSETS> 6,464,747
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> .52
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.52
<EXPENSE-RATIO> 1.21
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>400
<NAME>WEALTHBUILDER II GROWTH
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> OCT-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 5,524,017
<INVESTMENTS-AT-VALUE> 5,778,564
<RECEIVABLES> 12,537
<ASSETS-OTHER> 7,615
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 5,798,716
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 103,482
<TOTAL-LIABILITIES> 103,482
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 5,436,618
<SHARES-COMMON-STOCK> 517,306
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> (9,218)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 13,287
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 254,547
<NET-ASSETS> 5,695,234
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 12,752
<EXPENSES-NET> 21,193
<NET-INVESTMENT-INCOME> (8,441)
<REALIZED-GAINS-CURRENT> 13,287
<APPREC-INCREASE-CURRENT> 254,547
<NET-CHANGE-FROM-OPS> 259,393
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 777
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 5,553,468
<NUMBER-OF-SHARES-REDEEMED> 117,627
<SHARES-REINVESTED> 777
<NET-CHANGE-IN-ASSETS> 5,695,234
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5,939
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 56,325
<AVERAGE-NET-ASSETS> 2,548,707
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 1.02
<PER-SHARE-DIVIDEND> .01
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.01
<EXPENSE-RATIO> 1.25
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>410
<NAME>WEALTHBUILDER II GROWTH & INCOME
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> OCT-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 8,129,728
<INVESTMENTS-AT-VALUE> 8,476,871
<RECEIVABLES> 225,649
<ASSETS-OTHER> 7,615
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 8,710,135
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 87,348
<TOTAL-LIABILITIES> 87,348
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 8,277,854
<SHARES-COMMON-STOCK> 786,052
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> (9,973)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 7,763
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 347,143
<NET-ASSETS> 8,622,787
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 18,976
<EXPENSES-NET> 28,215
<NET-INVESTMENT-INCOME> (9,239)
<REALIZED-GAINS-CURRENT> 7,763
<APPREC-INCREASE-CURRENT> 347,143
<NET-CHANGE-FROM-OPS> 345,667
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 734
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 8,483,267
<NUMBER-OF-SHARES-REDEEMED> 206,147
<SHARES-REINVESTED> 734
<NET-CHANGE-IN-ASSETS> 8,622,787
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 7,907
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 65,524
<AVERAGE-NET-ASSETS> 3,393,363
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0.97
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.97
<EXPENSE-RATIO> 1.25
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NORWEST
ADVANTAGE ANNUAL REPORT DATED MAY 31, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000804235
<NAME> NORWEST ADVANTAGE FUNDS
<SERIES>
<NUMBER>420
<NAME>WEALTHBUILDER II GROWTH BALANCED
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> OCT-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 8,939,346
<INVESTMENTS-AT-VALUE> 9,236,645
<RECEIVABLES> 172,216
<ASSETS-OTHER> 9,615
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 9,418,476
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 116,832
<TOTAL-LIABILITIES> 116,832
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 8,958,628
<SHARES-COMMON-STOCK> 861,387
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 34,561
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 9,156
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 297,299
<NET-ASSETS> 9,299,644
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 77,059
<EXPENSES-NET> 34,928
<NET-INVESTMENT-INCOME> 42,131
<REALIZED-GAINS-CURRENT> 9,156
<APPREC-INCREASE-CURRENT> 297,299
<NET-CHANGE-FROM-OPS> 348,586
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 7,570
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 9,510,370
<NUMBER-OF-SHARES-REDEEMED> 559,312
<SHARES-REINVESTED> 7,570
<NET-CHANGE-IN-ASSETS> 9,299,644
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 9,786
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 73,811
<AVERAGE-NET-ASSETS> 4,199,872
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0.08
<PER-SHARE-GAIN-APPREC> 0.75
<PER-SHARE-DIVIDEND> 0.03
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.80
<EXPENSE-RATIO> 1.25
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
