SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM N-17F-2 OMB APPROVAL
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Certificate of Accounting of Securities and Similar OMB Number: 3235-0360
Investments in the Custody of Expires: July 31, 1991
Management Investment Companies Estimated average burden
hours per response. . . .0.05
Pursuant to Rule 17f-2 (17 CFR 270.17f-2) ---------------------------------------
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1. Investment Company Act File Number: Date examination completed:
811-4881 May 31, 1998
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2. State identification Number:
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AL AK AZ AR CA CO
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CT DE DC FL GA HI
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ID IL IN IA KS KY
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LA ME MD MA MI MN
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MS MO MT NE NV NH
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NJ NM NY NC ND OH
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OK OR PA RI SC SD
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TN TX UT VT VA WA
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WV WI WY PUERTO RICO
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Other (specify): See attached list of state identification numbers.
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3. Exact name of investment company as specified in registration statement:
Norwest Advantage Funds
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4. Name under which business is conducted, if different from above:
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5.Address of principal place of business (number, street, city, state, zip
code): Two Portland Square, Portland, ME 04101
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INSTRUCTIONS
This Form must be completed by investment companies that have custody of
securities or similar investments.
INVESTMENT COMPANY
1. All items must be completed by the investment company.
2. Give this Form to the independent public accountant who, in compliance with
Rule 17f-2 under the Act and applicable state law, examines securities and
similar investments in the custody of the investment company.
ACCOUNTANT
3. Submit this Form to the Securities and Exchange Commission and appropriate
state securities administrators when filing the certificate of accounting
required by Rule 17f-2 under the Act and applicable state law. File the original
and one copy with the Securities and Exchange Commission's principal office in
Washington, D.C., one copy with the regional office for the region in which the
investment company's principal business operations are conducted, and one copy
with the appropriate state administrator(s), if applicable.
THIS FORM MUST BE GIVEN TO YOUR INDEPENDENT PUBLIC ACCOUNTANT
Note: The estimated average burden hours are made solely for purposes of the
Paperwork Reduction Act, and are not derived from a comprehensive or
even a representative survey or study of the costs of SEC rules and
forms. Direct any comments concerning the accuracy of the estimated
average burden hours for compliance with SEC rules and form to Kenneth
A. Fogash, Deputy Executive Director, U.S. Securities and Exchange
Commission, 450 Fifth St., N.W., Washington, D.C. 20549 and Gary
Waxman, Clearance Officer, Office of Management and Budget, Room 3208,
New Executive Office Building, Washington, D.C. 20503.
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99 High Street Telephone 617 988 1000 Telefax 617-988-0800
Boston, MA 02110-2371
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INDEPENDENT AUDITORS' REPORT
To the Board of Trustees of
Norwest Advantage Funds
and
Securities and Exchange Commission:
We have examined management's assertion, included in its representation letter,
that Cash Investment Fund, U.S. Government Fund, Treasury Fund, Ready Cash
Investment Fund, Municipal Money Market Fund, Stable Income Fund, Limited Term
Government Income Fund, Intermediate Government Income Fund, Diversified Bond
Fund, Diversified Small Cap Fund, Income Fund, Total Return Bond Fund, Limited
Term Tax-Free 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,
Index Fund, Income Equity Fund, ValuGrowth Stock Fund, Diversified Equity Fund,
Growth Equity Fund, Large Company Growth Fund, Small Company Stock Fund, Small
Company Growth Fund, Small Cap Opportunities Fund, Contrarian Stock Fund,
International Fund, Norwest WealthBuilder II Growth Portfolio, Norwest
WealthBuilder II Growth & Income Portfolio, Norwest WealthBuilder II Growth
Balanced Portfolio, Performa Strategic Value Bond Fund, Performa Disciplined
Growth Fund, Performa Small Cap Value Fund, and Performa Global Growth Fund of
Norwest Advantage Funds (the Funds), complied with the provisions of subsection
(b) and (c) of Rule 17f-2 under the Investment Company Act of 1940 as of May 31,
1998. Management is responsible for the Funds' compliance with those provisions.
Our responsibility is to express an opinion on management's assertion about the
Funds' compliance based on our examination.
Our examination was made in accordance with standards established by the
American Institute of Certified Public Accountants and, accordingly, included
examining, on a test basis, evidence about the Funds' compliance with those
requirements and performing such other procedures as we considered necessary in
the circumstances. Included among our procedures were the following tests
performed as of May 31, 1998, with respect to securities transactions, without
prior notice to management:
(1) Inspection of documentation of all securities located in the vault, if any,
of Norwest Bank Minneapolis, N.A., the Custodian;
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(2) Confirmation of securities held by institutions in book entry form by
Participant Trust Company, Bankers Trust Company, Morgan Stanley Trust
Company, Depository Trust Company, and the Federal Reserve Bank and
examination of selected security position reconciliations;
(3) Inspection of documentation of other securities held in safekeeping by the
Custodian but not included in (1) or (2) above and examination of selected
security position reconciliations;
(4) Confirmation or inspection of documentation of all securities purchased but
not received, hypothecated, pledged, placed in escrow, or out for transfer
with brokers, pledgees and/or transfer agents;
(5) Reconciliation of all such securities to the books and records of the Funds
and the Custodian; and
(6) Tests of selected security transactions since the date of our last report.
We believe that our examination provides a reasonable basis for our opinion. Our
examination does not provide a legal determination on the Funds' compliance with
the specified requirements.
In our opinion, management's assertion that Norwest Advantage Funds was in
compliance with the above mentioned provisions of Rule 17f-2 of the Investment
Company Act of 1940 as of May 31, 1998 is fairly stated in all material
respects.
This report is intended solely for the information and use of management of
Norwest Advantage Funds and should not be used for any other purpose.
/s/ KPMG Peat Marwick LLP
Boston, Massachusetts
August 31, 1998
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[LOGO] Norwest Bank Minnesota, N.A.
Norwest Center
Sixth and Marquette
Minneapolis, MN 55479-0001
612/667-1234
August 17, 1998
KPMG Peat Marwick LLP
4200 Norwest Center
90th South 7th Street
Minneapolis, MN 55402
RE: Management Statement Regarding Compliance with Certain Provisions of the
Investment Company Act of 1940
Ladies and Gentlemen:
Norwest Bank Minnesota, N.A., as investment manager for Cash Investment Fund,
U.S. Government Fund, Treasury Fund, Ready Cash Investment Fund, Municipal Money
Market Fund, Stable Income Fund, Limited Term Government Fund, Intermediate
Government Income Fund, Diversified Bond Fund, Income Fund, Total Return Bond
Fund, Limited Term Tax-Free 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, Index Fund, Income Equity Fund, ValuGrowth Stock Fund, Diversified Equity
Fund, Growth Equity Fund, Large Company Growth Fund, Diversified Small Cap Fund,
Small Company Stock Fund, Small Company Growth Fund, Small Cap Opportunities
Fund, Contrarian Stock Fund, and International Fund, Performa Strategic Value
Bond Fund, Performa Disciplined Growth Fund, Performa Small Cap Value Fund,
Performa Global Growth Fund, Growth Portfolio, Growth and Income Portfolio, and
Growth Balanced Portfolio of Norwest Advantage Funds, is responsible for
complying with the requirements of subsections (b) and (c) of Rule 17f-2,
"Custody of Investments of Registered Management Investment Companies," of the
Investment Company Act of 1940. It is also responsible for establishing and
maintaining an effective internal control structure over compliance with Rule
17f-2 requirements.
Norwest Bank, Minnesota, N.A. has performed an evaluation of the Norwest
Advantage Funds' compliance with the requirements of subsections (b) and (c) of
Rule 17f-2 as of May 31, 1998. Based on this evaluation, it has been determined
that the Norwest Advantage Funds were in compliance with the requirements of
subsections (b) and (c) of Rule 17f-2 of the Investment Company Act of 1940 as
of May 31, 1998, with respect to securities reflected in the investment accounts
of the Norwest Advantage Funds.
Sincerely,
Norwest Bank Minnesota, N.A.
/s/ Carol Warner
Carol Warner, Senior Vice President
Trust Operations & Technology
