<PAGE>
ANNUAL REPORT TAX-FREE INCOME FUNDS
LIMITED TERM TAX-FREE FUND
JUNE 1, 1999 -- JUNE 30, 1999 TAX-FREE INCOME FUND
COLORADO TAX-FREE FUND
INSTITUTIONAL AND MINNESOTA INTERMEDIATE TAX-FREE FUND
RETAIL FUNDS MINNESOTA TAX-FREE FUND
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NOT FDIC INSURED. - NO BANK GUARANTEE. - MAY LOSE VALUE.
<PAGE>
TABLE OF CONTENTS JUNE 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
A MESSAGE TO OUR SHAREHOLDERS............................................. 1
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA.......................... 2
Limited Term Tax-Free Fund........................................ 2
Tax-Free Income Fund.............................................. 3
Colorado Tax-Free Fund............................................ 4
Minnesota Intermediate Tax-Free Fund.............................. 5
Minnesota Tax-Free Fund........................................... 6
INDEPENDENT AUDITORS' REPORT.............................................. 7
FINANCIAL STATEMENTS
Statements of Assets and Liabilities.............................. 8
Statements of Operations.......................................... 10
Statements of Changes in Net Assets............................... 12
Financial Highlights.............................................. 16
Notes to Financial Highlights..................................... 20
Notes to Financial Statements..................................... 21
Supplementary Information (Unaudited)............................. 23
Schedules of Investments.......................................... 24
Limited Term Tax-Free Fund................................ 24
Tax-Free Income Fund...................................... 27
Colorado Tax-Free Fund.................................... 31
Minnesota Intermediate Tax-Free Fund...................... 33
Minnesota Tax-Free Fund................................... 40
Notes to Schedules of Investments......................... 43
</TABLE>
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<PAGE>
A MESSAGE TO OUR SHAREHOLDERS
- --------------------------------------------------------------------------------
August 16, 1999
Dear Valued Shareholder:
We are pleased to present the 1999 Annual Report for
Norwest Advantage Tax-Free Funds for the one month period
ended June 30, 1999. This report includes our five
tax-free funds.
This special report reflects a change in the Funds'
fiscal year-end from May 31 to June 30. We have made this
change to improve our reporting process. This change will
not impact the performance or objective of your
investment. Because of the new year-end, this report is
the second annual report we have sent you over the last
two months. Our discussions will focus on the most recent
period, but we may also comment on longer-term
performance.
Recent events in the U.S. economy may signal a turning
point for domestic and international markets. Concerned
that strong domestic growth and low unemployment could
spark higher inflation, the Federal Reserve Board ("the
Fed") raised its target for the federal funds rate 0.25%
to 5% in June. Fear of such a rate increase threw the Dow
Jones Industrial Average (DJIA) into a spin during May.
However, when the Fed raised rates and announced it would
return to a neutral position in terms of the future
direction of interest rates, the news was well received on
Wall Street, and the stock and bond markets responded
positively at the end of the period.
Overall, a period of relative calm returned to global
markets due to Asia's improving economic condition. After
a brief scare late last summer, U.S. financial markets
shook off any threats to domestic prosperity, with the
DJIA climbing 3,000 points from October through April to
peak at a record high of 11,000. Thanks to the combination
of low unemployment, low inflation and strong consumer
spending, the nation's "Goldilocks" economy seemed just
right--at least through most of the period.
Although higher interest rates typically help cool the
nation's strong economic growth, economies from Asia to
Latin America are concerned about the prospect of a
tightening U.S. monetary policy. Higher interest rates
translate into higher bond yields, raising the debt
service burden throughout emerging markets. So while the
health of the world's economies remains questionable,
signs of optimism are emerging.
Whatever the market conditions, we recommend that you
continually review your investment portfolio with your
financial consultant to determine an appropriate mix of
investments to meet your ongoing needs. We appreciate your
business and strive to deliver personalized service along
with an array of investment options to help you achieve
your financial goals. If you have any questions or need
information, please contact us at 1-(800) 338-1348 or
(612) 667-8833, option 2.
Again, thank you for choosing Norwest Advantage Funds.
Sincerely,
/s/ John Y. Keffer
------------------------------
John Y. Keffer
CHAIRMAN, NORWEST ADVANTAGE
FUNDS
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1
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA JUNE 30, 1999
- --------------------------------------------------------------------------------
LIMITED TERM TAX-FREE FUND
During the one month period ended June 30, 1999, the Fund underperformed its
benchmark, the Lipper Short Intermediate Municipal Debt Average, with returns of
- -1.08% and -0.86%, respectively. Performance was affected by a strategy that
emphasizes yield in a one month period when yield was most of the return story.
Issue selection also played a role -- finding value in the marketplace.
Interest rates fell through the first five months of the fiscal year that ended
May 31, 1999, to all time low levels. Rates spiked higher in October 1998, and
have ratcheted gradually higher since with the sharpest rise occurring in June
1999. Municipals traded very cheap relative to taxable fixed income securities
during the early part of the fiscal year, but as interest rates moved higher,
municipals outperformed. Therefore, municipal funds declined less in value as
rates rose, than did taxable fixed income funds during that period. In an
environment where rates fluctuate in a fairly narrow range with an upward trend,
such as we have seen, a style that emphasizes yield outperforms other
strategies. The strategy for this Fund emphasizes high dividend yields with
relatively low market volatility.
We expect the Federal Reserve Board (the "Fed") will remain vigilant against
inflation. We believe the Fed's interest rate increase on June 30, 1999, helped
ease inflation worries. We believe the Fed will continue to guide interest rates
higher if the level of growth creates the need. Later in the year, interest
rates may decline again from their current levels and the expected low inflation
environment will make municipals very attractive relative to other investment
alternatives. Over the past several months, municipals significantly
outperformed taxable bonds, but they remain attractive by historical norms. We
believe that the current portfolio position, with its balance between issues
that add yield and issues that give market performance, has been successful and
should continue to be. The Fund has a duration of about four years and we plan
to maintain that level.
The portfolio emphasizes issues with structures that provide above market yields
and low market volatility such as those with active sinking funds or high
coupons with short call features. We also use pre-refunded bonds that seek to
provide liquidity and market price performance.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH JUNE
30, 1999. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON
MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES AND HOLDINGS OF THE
PORTFOLIO ARE SUBJECT TO CHANGE.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
LIMITED TERM TAX-FREE FUND ("FUND") VS. LEHMAN 3-YEAR MUNICIPAL BOND INDEX
("LEHMAN INDEX") AND LIPPER SHORT INTERMEDIATE MUNICIPAL DEBT AVERAGE ("LIPPER
AVERAGE")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, since inception. The result is
compared with a broad-based securities market index and a peer based average.
The Fund's total return includes operating expenses that reduce returns, while
the total return of the Index does not. Total return of the Fund would have been
lower had certain fees and expenses not been voluntarily waived and/or
reimbursed. The Fund is professionally managed while the Index is unmanaged and
is not available for investment. The Lipper Average does not include sales
charges but does include management fees and expenses. The Lipper Average is
calculated by taking an arithmetic average of the returns of the funds in the
group. Investment return and principal value of an investment in the Fund will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than their original cost. PAST PERFORMANCE IS NOT PREDICTIVE NOR A GUARANTEE OF
FUTURE RESULTS.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1999
-------------------------------------
LEHMAN LIPPER
I SHARES INDEX AVERAGE+
----------- ----------- -----------
<S> <C> <C> <C>
ONE YEAR 2.47% 3.66% 2.50%
SINCE INCEPTION 6.01% 4.75% 4.06%
INCEPTION DATE 10/1/96 9/30/96 9/30/96
VALUE JUNE 30, 1999 $11,739 $11,361 $11,156
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
LTD TERM TAX-FREE I SHARES LEHMAN INDEX LIPPER AVERAGE
<S> <C> <C> <C>
9/30/96 10,000.00 10,000.00 10,000.00
10/31/96 10,387.13 10,070.00 10,082.00
11/30/96 10,536.75 10,163.65 10,183.83
12/31/96 10,515.16 10,168.73 10,178.74
1/31/97 10,555.29 10,213.48 10,206.22
2/28/97 10,621.13 10,263.52 10,262.35
3/31/97 10,566.35 10,210.15 10,183.33
4/30/97 10,616.43 10,254.05 10,217.96
5/31/97 10,698.75 10,337.11 10,303.79
6/30/97 10,780.22 10,398.10 10,372.82
7/31/97 10,977.16 10,521.84 10,507.67
8/31/97 10,904.88 10,500.80 10,471.94
9/30/97 10,997.71 10,576.40 10,544.20
10/31/97 11,070.76 10,622.94 10,584.27
11/30/97 11,100.81 10,653.74 10,613.90
12/31/97 11,206.59 10,726.19 10,692.45
1/31/98 11,280.83 10,781.97 10,759.81
2/28/98 11,287.44 10,819.70 10,772.72
3/31/98 11,329.74 10,837.01 10,784.57
4/30/98 11,285.14 10,821.84 10,752.22
5/31/98 11,413.81 10,922.48 10,853.29
6/30/98 11,455.49 10,959.62 10,883.68
7/31/98 11,487.98 10,999.08 10,911.97
8/31/98 11,618.53 11,105.77 11,021.09
9/30/98 11,715.06 11,176.84 11,101.55
10/31/98 11,735.98 11,230.49 11,127.08
11/30/98 11,755.83 11,257.45 11,148.22
12/31/98 11,798.86 11,284.42 11,180.55
1/31/99 11,896.50 11,387.10 11,274.47
2/28/99 11,878.72 11,399.63 11,251.92
3/31/99 11,875.36 11,409.89 11,257.55
4/30/99 11,904.08 11,445.26 11,282.31
5/31/99 11,866.75 11,429.24 11,252.98
6/30/99 11,738.59 11,360.66 11,156.20
</TABLE>
+ Source: Lipper Analytical Services, Inc. is an independent mutual fund rating
service that ranks funds in various fund categories by making comparative
calculations using total returns. Although gathered from reliable sources, data
accuracy and completeness cannot be guaranteed.
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2
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (CONTINUED) JUNE 30, 1999
- --------------------------------------------------------------------------------
TAX-FREE INCOME FUND
During the one month period ended June 30, 1999, the Fund outperformed its
benchmark, the Lipper General Municipal Debt Average, with a return of -1.69%
compared to -1.74%.
Changes in interest rates are typically the single most important economic
factor that influences the total return of the Fund. Interest rates fell during
the first five months of the fiscal year that ended May 31, 1999, as the Federal
Reserve Board (the "Fed") lowered interest rates in response to various
international economic problems. As economic conditions overseas stabilized
later in the fiscal year, interest rates slowly increased. Rates reached their
peak in June of 1999 just prior to a much-anticipated 0.25% interest rate hike
by the Fed. The move was already reflected in market yields, and thus had a
muted effect on the market when announced. Despite all the activity from the
Fed, the net change in long-term interest rates on municipal bonds for the
fiscal year was a modest increase of 0.19%. It is our view that inflation is not
an imminent problem in the U.S., and the Fed's action was cautionary and
pre-emptive in nature.
The Fund's investment objective is to produce a current income exempt from
federal income taxes. Given our outlook for interest rates, we will make changes
to the portfolio to maintain the desired level of market exposure. Our current
plan is to keep the portfolio positioned for an eventual decline in interest
rates. We don't expect much additional increase. We make adjustments to the
portfolio seeking to maximize the return while maintaining a prudent level of
risk.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH JUNE
30, 1999. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON
MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES AND HOLDINGS OF THE
PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. THE PERFORMANCE FOR OTHER
CLASSES WILL DIFFER.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
TAX-FREE INCOME FUND ("FUND") VS. LEHMAN BROTHERS 10-YEAR MUNICIPAL INDEX
("LEHMAN INDEX")
AND LIPPER GENERAL MUNICIPAL DEBT AVERAGE ("LIPPER AVERAGE")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, since inception. The result is
compared with a broad-based securities market index and a peer based average.
The Fund's total return includes operating expenses that reduce returns, while
the total return of the Index does not. Total return would have been lower had
certain fees and expenses not been voluntarily waived and/or reimbursed. The
Fund is professionally managed while the Index is unmanaged and is not available
for investment. The Lipper Average does not include sales charges but does
include management fees and expenses. The Lipper Average is calculated by taking
an arithmetic average of the returns of the funds in the group. Investment
return and principal value of an investment in the Fund will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. PAST PERFORMANCE IS NOT PREDICTIVE NOR A GUARANTEE OF FUTURE
RESULTS.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1999
----------------------------------------------------------
LEHMAN LIPPER
A SHARES B SHARES* I SHARES** INDEX AVERAGE+
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
ONE YEAR (2.73%) (2.78%) 1.86% 2.29% 1.13%
FIVE YEAR 6.01% 6.03% 6.99% 7.11% 6.09%
SINCE INCEPTION 6.00% 5.72% 6.50% 7.69% 6.64%
INCEPTION DATE 8/1/89 8/1/89 8/1/89 7/31/89 7/31/89
VALUE JUNE 30, 1999 $17,825 $17,364 $18,665 $20,846 $18,919
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
6/30/99 TAX-FREE ANNUAL
<S> <C> <C> <C> <C> <C>
Tax-Free Income A Shares B Shares I Shares Lehman Index Lipper Average
7/31/89 9,550.00 10,000.00 10,000.00 10,000.00 10,000.00
8/31/89 9,446.27 9,885.18 9,891.38 9,941.00 9,897.00
9/30/89 9,404.06 9,834.88 9,847.18 9,894.28 9,867.31
10/31/89 9,546.88 9,977.95 9,996.74 10,007.07 9,985.72
11/30/89 9,708.35 10,140.53 10,165.82 10,174.19 10,143.49
12/31/89 9,755.42 10,183.19 10,215.09 10,278.98 10,212.47
1/31/90 9,705.38 10,124.43 10,162.70 10,248.15 10,104.21
2/28/90 9,777.57 10,193.88 10,238.29 10,319.88 10,204.25
3/31/90 9,786.22 10,196.36 10,247.35 10,303.37 10,201.19
4/30/90 9,673.55 10,072.65 10,129.37 10,372.41 10,068.57
5/31/90 9,894.06 10,295.81 10,360.28 10,597.49 10,332.37
6/30/90 9,992.26 10,391.61 10,463.10 10,697.10 10,431.56
7/31/90 10,142.87 10,541.58 10,620.81 10,845.79 10,604.72
8/31/90 9,966.96 10,352.00 10,436.61 10,689.61 10,377.78
9/30/90 10,024.00 10,404.83 10,496.34 10,691.75 10,392.31
10/31/90 10,156.68 10,535.88 10,635.27 10,926.97 10,543.00
11/30/90 10,319.48 10,698.23 10,805.74 11,149.88 10,791.81
12/31/90 10,329.10 10,701.35 10,815.81 11,176.64 10,838.22
1/31/91 10,475.31 10,845.96 10,968.91 11,361.05 10,971.53
2/28/91 10,616.82 10,986.21 11,117.09 11,458.76 11,035.16
3/31/91 10,565.22 10,925.77 11,063.06 11,453.03 11,058.34
4/30/91 10,692.47 11,050.59 11,196.31 11,611.08 11,220.89
5/31/91 10,800.75 11,155.41 11,309.68 11,698.16 11,323.00
6/30/91 10,776.35 11,123.29 11,284.13 11,684.13 11,290.17
7/31/91 10,885.85 11,229.19 11,398.80 11,806.81 11,455.00
8/31/91 10,985.03 11,324.31 11,502.65 11,966.20 11,601.63
9/30/91 11,093.99 11,429.60 11,616.74 12,149.28 11,750.13
10/31/91 11,151.38 11,481.41 11,676.84 12,247.69 11,857.05
11/30/91 11,161.57 11,484.78 11,687.50 12,268.52 11,872.47
12/31/91 11,301.00 11,620.89 11,833.51 12,529.83 12,150.28
1/31/92 11,349.63 11,663.44 11,884.43 12,556.15 12,145.42
2/29/92 11,397.61 11,705.76 11,934.67 12,537.31 12,164.86
3/31/92 11,426.92 11,728.37 11,965.36 12,518.51 12,172.16
4/30/92 11,525.72 11,822.51 12,068.82 12,637.43 12,282.92
5/31/92 11,627.66 11,919.49 12,175.56 12,785.29 12,454.88
6/30/92 11,762.53 12,050.36 12,316.79 13,006.48 12,681.56
7/31/92 11,963.21 12,248.23 12,526.92 13,433.09 13,131.76
8/31/92 11,919.79 12,195.93 12,481.45 13,274.58 12,922.96
9/30/92 11,996.77 12,267.14 12,562.06 13,384.76 12,973.36
10/31/92 11,816.84 12,075.29 12,373.65 13,248.23 12,738.54
11/30/92 11,988.38 12,243.10 12,553.28 13,490.68 13,065.92
12/31/92 12,129.52 12,379.37 12,701.07 13,647.17 13,226.64
1/31/93 12,203.61 12,447.06 12,778.65 13,876.44 13,374.77
2/28/93 12,474.43 12,716.09 13,062.23 14,384.32 13,899.06
3/31/93 12,391.72 12,623.63 12,975.62 14,174.31 13,737.84
4/30/93 12,494.63 12,720.64 13,083.38 14,308.96 13,888.95
5/31/93 12,542.20 12,760.93 13,133.19 14,359.04 13,969.51
6/30/93 12,754.93 12,969.47 13,355.95 14,641.92 14,209.78
7/31/93 12,771.42 12,977.93 13,373.22 14,678.52 14,209.78
8/31/93 13,033.40 13,267.86 13,660.79 14,982.37 14,523.82
9/30/93 13,143.44 13,371.59 13,762.81 15,166.65 14,695.20
10/31/93 13,166.43 13,386.71 13,786.96 15,190.92 14,721.65
11/30/93 12,979.64 13,201.40 13,604.80 15,066.35 14,570.02
12/31/93 13,279.67 13,484.40 13,919.04 15,387.26 14,861.42
1/31/94 13,469.08 13,668.50 14,103.83 15,576.53 15,027.87
2/28/94 13,082.90 13,268.05 13,699.50 15,149.73 14,637.14
3/31/94 12,549.94 12,718.02 13,141.46 14,567.98 13,987.25
4/30/94 12,672.63 12,834.74 13,269.96 14,751.54 14,039.01
5/31/94 12,760.14 12,915.45 13,361.63 14,845.95 14,165.36
6/30/94 12,714.62 12,861.14 13,313.99 14,782.11 14,073.28
7/31/94 12,897.36 13,037.78 13,505.35 15,030.45 14,320.97
8/31/94 12,946.84 13,079.43 13,557.18 15,089.07 14,355.34
9/30/94 12,770.82 12,906.40 13,387.01 14,885.37 14,119.91
10/31/94 12,600.18 12,712.73 13,194.14 14,668.04 13,848.81
11/30/94 12,360.69 12,463.41 12,957.65 14,390.81 13,552.45
12/31/94 12,633.77 12,730.15 13,243.52 14,649.85 13,885.84
1/31/95 12,969.93 13,061.06 13,581.06 15,029.28 14,298.25
2/28/95 13,290.50 13,376.09 13,931.22 15,454.61 14,717.19
3/31/95 13,373.34 13,450.24 14,017.95 15,663.25 14,851.11
4/30/95 13,404.76 13,474.03 14,036.24 15,682.04 14,852.60
5/31/95 13,835.16 13,897.96 14,486.95 16,179.16 15,314.51
6/30/95 13,705.54 13,758.56 14,351.27 16,078.85 15,146.05
7/31/95 13,823.33 13,868.47 14,474.63 16,315.21 15,242.99
8/31/95 13,973.29 14,010.10 14,646.58 16,537.10 15,410.66
9/30/95 14,052.81 14,080.79 14,729.90 16,642.93 15,501.58
10/31/95 14,245.76 14,265.26 14,931.97 16,834.33 15,740.31
11/30/95 14,580.34 14,591.39 15,267.25 17,059.91 16,045.67
12/31/95 14,764.92 14,766.48 15,460.58 17,163.97 16,226.99
1/31/96 14,890.15 14,882.62 15,606.98 17,337.33 16,304.88
2/29/96 14,780.73 14,764.34 15,477.15 17,122.35 16,182.59
3/31/96 14,587.68 14,562.17 15,275.03 17,062.42 15,925.29
4/30/96 14,552.62 14,518.14 15,253.80 17,014.64 15,850.44
5/31/96 14,566.90 14,522.54 15,253.27 17,176.28 15,858.36
6/30/96 14,688.93 14,635.84 15,396.69 17,341.18 16,007.43
7/31/96 14,878.19 14,815.06 15,594.86 17,507.65 16,146.70
8/31/96 14,846.53 14,773.39 15,545.96 17,507.65 16,138.62
9/30/96 15,044.66 14,962.01 15,769.28 17,687.98 16,369.41
10/31/96 15,250.90 15,157.52 15,985.27 17,910.85 16,544.56
11/30/96 15,502.87 15,398.21 16,233.18 18,272.65 16,832.43
12/31/96 15,464.88 15,350.78 16,193.47 18,190.42 16,760.05
1/31/97 15,491.34 15,367.03 16,237.36 18,261.36 16,760.05
2/28/97 15,631.86 15,497.46 16,368.35 18,433.02 16,905.87
3/31/97 15,402.97 15,261.37 16,128.70 18,186.02 16,686.09
4/30/97 15,566.89 15,414.30 16,300.40 18,320.59 16,826.25
5/31/97 15,795.59 15,630.89 16,556.32 18,580.75 17,066.87
6/30/97 15,958.26 15,782.10 16,726.71 18,785.13 17,259.72
7/31/97 16,454.72 16,262.87 17,246.61 19,313.00 17,780.97
8/31/97 16,255.40 16,055.54 17,021.32 19,125.66 17,574.71
9/30/97 16,467.54 16,255.12 17,260.19 19,368.56 17,792.63
10/31/97 16,586.95 16,362.62 17,368.52 19,471.21 17,904.73
11/30/97 16,721.08 16,484.69 17,525.84 19,560.78 18,006.79
12/31/97 17,051.86 16,800.03 17,855.36 19,869.84 18,293.09
1/31/98 17,190.02 16,925.37 18,017.03 20,090.39 18,466.88
2/28/98 17,174.86 16,916.68 18,001.16 20,088.38 18,455.80
3/31/98 17,199.22 16,929.89 18,026.74 20,074.32 18,461.33
4/30/98 17,041.09 16,747.88 17,861.27 19,963.91 18,346.87
5/31/98 17,427.56 17,116.85 18,248.76 20,303.30 18,645.93
6/30/98 17,498.95 17,176.44 18,323.58 20,378.42 18,707.46
7/31/98 17,523.23 17,189.33 18,349.12 20,411.03 18,733.65
8/31/98 17,847.24 17,496.18 18,705.93 20,766.18 19,024.02
9/30/98 18,119.37 17,752.12 18,991.00 21,075.60 19,250.41
10/31/98 18,022.70 17,646.22 18,889.96 21,084.03 19,177.26
11/30/98 18,143.31 17,753.41 18,998.63 21,147.28 19,236.71
12/31/98 18,149.19 17,747.85 19,022.59 21,212.83 19,269.41
1/31/99 18,341.16 17,924.02 19,205.83 21,537.39 19,485.23
2/28/99 18,219.93 17,794.94 19,078.73 21,343.55 19,360.52
3/31/99 18,208.92 17,772.69 19,085.24 21,332.88 19,362.46
4/30/99 18,280.65 17,848.57 19,160.57 21,390.48 19,406.99
5/31/99 18,131.41 17,674.70 18,986.23 21,240.75 19,253.67
6/30/99 17,824.98 17,363.63 18,665.37 20,845.67 18,918.66
</TABLE>
* 8/6/93 was the inception date of Class B Shares of the Fund. Returns prior to
that date are for Class A Shares, adjusted for Class B Share expenses.
** 8/2/93 was the inception date of Class I Shares of the Fund. Returns prior to
that date are for Class A Shares.
+ Source: Lipper Analytical Services, Inc. is an independent mutual fund rating
service that ranks funds in various fund categories by making comparative
calculations using total returns. Although gathered from reliable sources, data
accuracy and completeness cannot be guaranteed.
THE RETURNS ABOVE ARE CALCULATED USING THE MAXIMUM 4.50% SALES CHARGE FOR CLASS
A SHARES AND THE MAXIMUM 5.00% DEFERRED SALES CHARGE (DECLINING TO ZERO AFTER
THE SIXTH YEAR) FOR CLASS B SHARES.
[LOGO]
3
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (CONTINUED) JUNE 30, 1999
- --------------------------------------------------------------------------------
COLORADO TAX-FREE FUND
During the one month period ended June 30, 1999, the Fund underperformed its
benchmark, the Lipper Colorado Municipal Debt Average. The Fund's total return
was -1.97% versus -1.69% for the benchmark.
Changes in interest rates are typically the single most important economic
factor that influences the total return of the Fund. Interest rates fell during
the first five months of the fiscal year that ended May 31, 1999, as the Federal
Reserve Board (the "Fed") lowered interest rates in response to various
international economic problems. As economic conditions overseas stabilized
later in the fiscal year, interest rates slowly increased. Rates reached their
peak in June of 1999 just prior to a much-anticipated 0.25% interest rate hike
by the Fed. The move was already reflected in market yields, and thus had a
muted effect on the market when announced. Despite all the activity from the
Fed, the net change in long-term interest rates on municipal bonds for the
fiscal year was a modest increase of 0.19%. It is our view that inflation is not
an imminent problem in the U.S., and the Fed's action was cautionary and
pre-emptive in nature.
The Fund's investment objective is to provide shareholders with a high level of
current income exempt from both federal (including the AMT) and Colorado state
income taxes consistent with the preservation of capital. Given our outlook for
interest rates, we will make changes to the portfolio to maintain the desired
level of market exposure. Our current plan is to keep the portfolio positioned
for an eventual decline in interest rates. We don't expect much additional
increase. We make adjustments to the portfolio seeking to maximize the return
while maintaining a prudent level of risk.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH JUNE
30, 1999. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON
MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES AND HOLDINGS OF THE
PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. THE PERFORMANCE FOR OTHER
CLASSES WILL DIFFER.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
COLORADO TAX-FREE FUND ("FUND") VS. LEHMAN BROTHERS 10-YEAR MUNICIPAL INDEX
("LEHMAN INDEX")
AND LIPPER COLORADO MUNICIPAL DEBT AVERAGE ("LIPPER AVERAGE")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, since inception. The result is
compared with a broad-based securities market index and a peer based average.
The Fund's total return includes operating expenses that reduce returns, while
the total return of the Index does not. Total return of the Fund would have been
lower had certain fees and expenses not been voluntarily waived and/or
reimbursed. The Fund is professionally managed while the Index is unmanaged and
is not available for investment. The Lipper Average does not include sales
charges but does include management fees and expenses. The Lipper Average is
calculated by taking an arithmetic average of the returns of the funds in the
group. Investment return and principal value of an investment in the Fund will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than their original cost. PAST PERFORMANCE IS NOT PREDICTIVE NOR A GUARANTEE OF
FUTURE RESULTS.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1999
----------------------------------------------------------
LEHMAN LIPPER
A SHARES B SHARES* I SHARES** INDEX AVERAGE+
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
ONE YEAR (3.22%) (3.27%) 1.34% 2.29% 1.46%
FIVE YEAR 5.84% 5.86% 6.82% 7.11% 6.29%
SINCE INCEPTION 5.00% 5.03% 5.80% 6.32% 5.35%
INCEPTION DATE 6/1/93 6/1/93 6/1/93 5/31/93 5/31/93
VALUE JUNE 30, 1999 $13,452 $13,472 $14,086 $14,517 $13,728
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
6/30/99 TAX-FREE ANNUAL
<S> <C> <C> <C> <C> <C>
Colo Tax-Free A Shares B Shares I Shares Lehman Index Lipper Average
05/31/93 9,550.00 10,000.00 10,000.00 10,000.00 10,000.00
06/30/93 9,685.30 10,132.00 10,141.67 10,197.00 10,156.00
07/31/93 9,671.33 10,117.82 10,127.05 10,222.49 10,185.45
08/31/93 9,923.02 10,374.81 10,390.59 10,434.10 10,386.11
09/30/93 10,061.09 10,532.50 10,535.17 10,562.44 10,513.85
10/31/93 10,056.28 10,510.39 10,530.14 10,579.34 10,538.04
11/30/93 9,933.20 10,375.85 10,401.25 10,492.59 10,453.73
12/31/93 10,175.97 10,621.76 10,655.46 10,716.08 10,650.26
01/31/94 10,334.98 10,781.09 10,821.97 10,847.89 10,789.78
02/28/94 10,027.28 10,464.12 10,499.77 10,550.65 10,504.93
03/31/94 9,617.20 10,029.86 10,080.75 10,145.51 10,061.62
04/30/94 9,644.56 10,041.90 10,098.96 10,273.34 10,090.80
05/31/94 9,743.03 10,138.30 10,202.08 10,339.09 10,191.71
06/30/94 9,671.41 10,057.19 10,127.09 10,294.63 10,116.29
07/31/94 9,833.26 10,229.17 10,296.56 10,467.58 10,305.47
08/31/94 9,864.22 10,244.52 10,328.97 10,508.41 10,319.89
09/30/94 9,713.62 10,081.63 10,171.28 10,366.54 10,158.90
10/31/94 9,558.41 9,914.27 10,008.74 10,215.19 9,972.99
11/30/94 9,383.39 9,726.89 9,825.46 10,022.13 9,761.57
12/31/94 9,572.66 9,916.57 10,023.61 10,202.52 9,993.89
01/31/95 9,767.11 10,111.92 10,227.22 10,466.77 10,290.71
02/28/95 10,024.19 10,382.92 10,507.30 10,762.98 10,580.91
03/31/95 10,112.33 10,467.03 10,599.59 10,908.28 10,654.98
04/30/95 10,141.82 10,480.63 10,619.48 10,921.37 10,668.83
05/31/95 10,471.25 10,813.92 10,964.42 11,267.58 10,997.43
06/30/95 10,391.12 10,724.16 10,880.52 11,197.72 10,891.85
07/31/95 10,508.26 10,838.91 11,003.19 11,362.32 10,969.18
08/31/95 10,661.36 10,989.57 11,163.49 11,516.85 11,088.75
09/30/95 10,720.01 11,043.42 11,224.92 11,590.56 11,151.95
10/31/95 10,873.61 11,194.71 11,385.77 11,723.85 11,327.04
11/30/95 11,061.12 11,391.74 11,593.45 11,880.95 11,519.60
12/31/95 11,199.56 11,515.91 11,727.05 11,953.42 11,652.07
01/31/96 11,280.45 11,603.43 11,811.77 12,074.15 11,721.99
02/29/96 11,194.79 11,508.28 11,733.55 11,924.43 11,652.83
03/31/96 11,057.64 11,359.83 11,589.94 11,882.70 11,487.36
04/30/96 10,997.53 11,291.67 11,527.01 11,849.43 11,451.75
05/31/96 11,031.56 11,307.48 11,551.03 11,962.00 11,467.78
06/30/96 11,168.51 11,452.21 11,694.43 12,076.83 11,567.55
07/31/96 11,299.79 11,567.88 11,831.90 12,192.77 11,663.56
08/31/96 11,278.53 11,549.37 11,809.65 12,192.77 11,669.39
09/30/96 11,462.67 11,719.15 12,002.46 12,318.35 11,811.76
10/31/96 11,595.78 11,848.06 12,141.85 12,473.57 11,936.96
11/30/96 11,750.85 11,998.53 12,304.23 12,725.53 12,126.76
12/31/96 11,746.02 11,986.53 12,299.19 12,668.27 12,094.02
01/31/97 11,811.45 12,045.26 12,367.71 12,717.67 12,108.53
02/28/97 11,893.00 12,121.15 12,453.11 12,837.22 12,209.03
03/31/97 11,732.61 11,950.24 12,285.16 12,665.20 12,067.41
04/30/97 11,842.08 12,054.21 12,399.80 12,758.92 12,163.95
05/31/97 12,024.10 12,231.40 12,590.40 12,940.10 12,323.29
06/30/97 12,145.45 12,347.60 12,717.50 13,082.44 12,478.57
07/31/97 12,540.94 12,741.49 13,131.66 13,450.06 12,847.93
08/31/97 12,345.14 12,535.08 12,926.64 13,319.59 12,715.60
09/30/97 12,516.04 12,713.08 13,118.06 13,488.75 12,865.64
10/31/97 12,641.50 12,819.87 13,236.91 13,560.24 12,960.85
11/30/97 12,718.14 12,901.91 13,329.75 13,622.62 13,023.06
12/31/97 12,954.86 13,132.86 13,564.98 13,837.86 13,228.83
01/31/98 13,070.77 13,241.86 13,699.06 13,991.46 13,363.76
02/28/98 13,071.20 13,222.00 13,686.83 13,990.06 13,351.73
03/31/98 13,076.43 13,219.35 13,692.31 13,980.26 13,357.07
04/30/98 12,958.02 13,104.35 13,581.19 13,903.37 13,275.59
05/31/98 13,221.64 13,362.50 13,844.38 14,139.73 13,485.35
06/30/98 13,274.14 13,394.57 13,899.42 14,192.05 13,531.20
07/31/98 13,291.78 13,403.95 13,917.92 14,214.75 13,558.26
08/31/98 13,520.61 13,626.45 14,157.55 14,462.09 13,758.92
09/30/98 13,723.32 13,822.67 14,369.82 14,677.58 13,922.65
10/31/98 13,612.27 13,702.42 14,253.57 14,683.45 13,887.85
11/30/98 13,713.75 13,795.59 14,359.85 14,727.50 13,943.40
12/31/98 13,750.20 13,823.18 14,398.02 14,773.15 13,964.31
01/31/99 13,894.40 13,958.65 14,549.03 14,999.18 14,108.15
02/28/99 13,776.89 13,845.59 14,426.02 14,864.19 14,024.91
03/31/99 13,768.41 13,815.13 14,417.16 14,856.76 14,023.51
04/30/99 13,809.69 13,860.72 14,473.87 14,896.87 14,057.16
05/31/99 13,722.83 13,751.22 14,369.31 14,792.59 13,961.57
06/30/99 13,452.49 13,472.07 14,086.23 14,517.45 13,728.42
</TABLE>
* 8/2/93 was the inception date of Class B Shares of the Fund. Returns prior to
that date are for Class A Shares, adjusted for Class B Share expenses.
** 8/23/93 was the inception date of Class I Shares of the Fund. Returns prior
to that date are for Class A Shares.
+ Source: Lipper Analytical Services, Inc. is an independent mutual fund rating
service that ranks funds in various fund categories by making comparative
calculations using total returns. Although gathered from reliable sources, data
accuracy and completeness cannot be guaranteed.
THE RETURNS ABOVE ARE CALCULATED USING THE MAXIMUM 4.50% SALES CHARGE FOR CLASS
A SHARES AND THE MAXIMUM 5.00% DEFERRED SALES CHARGE (DECLINING TO ZERO AFTER
THE SIXTH YEAR) FOR CLASS B SHARES.
[LOGO]
4
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (CONTINUED) JUNE 30, 1999
- --------------------------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND
During the one month period ended June 30, 1999, the Fund outperformed the
Lipper Other States Intermediate Municipal Average peer group average by 0.23%
with a return of -1.21% versus -1.44%. Analyzing relative performance on a
month-by-month basis shows that the Fund underperformed slightly when rates fell
and outperformed more significantly when rates rose. The strategy for this Fund
emphasizes income with relatively low market volatility.
Rates fell to all-time low levels through the first five months of the fiscal
year that ended May 31, 1999. Rates spiked higher in October 1998 and gradually
increased throughout the remainder of the fiscal year with the largest rate
increase occurring in June of 1999. Municipals traded very cheap relative to
taxable fixed income securities during the early part of the fiscal year, but as
interest rates moved higher, municipals outperformed. Therefore, municipal funds
declined less in value as rates rose, than did taxable fixed income funds during
that period. The Fund's outstanding income return helped the Fund outperform
during the environment of low and fairly stable interest rates and helped offset
price declines when rates moved up. The two main determinants of relative
performance for this Fund are the above market yields in the Fund and the
direction of interest rates. Quality spreads have been fairly narrow and there
have been fewer trading opportunities, so performance has been determined
chiefly by having the right structure and the right interest rate outlook.
Because our interest rate outlook has been for lower interest rates through most
of the fiscal year, we have maintained a segment of this portfolio in longer
duration, high convexity issues to offset the core segment represented by the
high book yield, short duration holdings. The latter portion of the portfolio
supports the Fund's above market dividend yield, and the long duration holdings
provides price performance when rates fall. We expect the Federal Reserve Board
(the "Fed") to remain vigilant against inflation. We believe the Fed's interest
rate increase on June 30, 1999, helped ease inflation worries. We believe the
Fed will continue to guide interest rates higher if the level of growth creates
the need. We expect this Fund's above market yield holdings will continue to
contribute to its success. The use of longer duration holdings to enhance price
returns has proven successful and we currently will maintain this strategy.
However, if our interest rate outlook becomes bearish, we will likely pare back
the longer duration portion of the Fund's holdings.
We expect rates to decline from current levels and that the low inflation
environment will make municipals very attractive relative to other investment
alternatives. Over the past several months, municipals have significantly
outperformed taxable bonds, but still remain attractive by historical norms. The
Minnesota economy remains very strong and that strong economy is creating many
financing needs that may provide attractive investment opportunities for the
Fund.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH JUNE
30, 1999. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON
MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES AND HOLDINGS OF THE
PORTFOLIO ARE SUBJECT TO CHANGE.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
MINNESOTA INTERMEDIATE TAX-FREE FUND ("FUND") VS. LEHMAN BROTHERS MUNICIPAL BOND
INDEX
("LEHMAN INDEX") AND LIPPER OTHER STATES INTERMEDIATE MUNICIPAL AVERAGE ("LIPPER
AVERAGE")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, over the past 10 fiscal year
periods. The result is compared with a broad-based securities market index and a
peer based average. The Fund's total return includes operating expenses that
reduce returns, while the total return of the Index does not. Total return of
the Fund would have been lower had certain fees and expenses not been
voluntarily waived and/or reimbursed. The Fund is professionally managed while
the Index is unmanaged and is not available for investment. The Lipper Average
does not include sales charges but does include management fees and expenses.
The Lipper Average is calculated by taking an arithmetic average of the returns
of the funds in the group. Investment return and principal value of an
investment in the Fund will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost. PAST PERFORMANCE
IS NOT PREDICTIVE NOR A GUARANTEE OF FUTURE RESULTS.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1999
-------------------------------------
LEHMAN LIPPER
I SHARES* INDEX AVERAGE+
----------- ----------- -----------
<S> <C> <C> <C>
ONE YEAR 2.38% 2.77% 1.66%
FIVE YEAR 5.70% 7.00% 5.15%
TEN YEAR 6.13% 7.43% 5.98%
VALUE JUNE 30, 1999 $18,120 $20,476 $17,879
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
6/30/99 TAX-FREE ANNUAL
<S> <C> <C> <C>
Minn Intm Tax-Free I Shares Lehman Index Lipper Average
06/30/89 10,000.00 10,000.00 10,000.00
07/31/89 10,112.00 10,136.00 10,082.00
08/31/89 10,132.22 10,036.67 10,094.10
09/30/89 10,053.19 10,006.56 10,099.15
10/31/89 10,176.85 10,128.64 10,184.99
11/30/89 10,286.76 10,305.89 10,260.36
12/31/89 10,387.57 10,390.40 10,315.76
01/31/90 10,361.60 10,341.56 10,337.43
02/28/90 10,445.53 10,433.60 10,413.92
03/31/90 10,448.66 10,436.73 10,423.30
04/30/90 10,406.87 10,361.59 10,384.73
05/31/90 10,576.50 10,587.47 10,535.31
06/30/90 10,657.94 10,680.64 10,608.00
07/31/90 10,779.44 10,837.65 10,722.57
08/31/90 10,707.22 10,680.50 10,663.59
09/30/90 10,732.91 10,686.91 10,699.85
10/31/90 10,868.15 10,880.34 10,833.60
11/30/90 11,034.43 11,099.04 10,985.27
12/31/90 11,081.88 11,147.87 11,031.41
01/31/91 11,203.78 11,297.25 11,141.72
02/28/91 11,297.89 11,395.54 11,248.68
03/31/91 11,306.93 11,400.10 11,264.43
04/30/91 11,401.91 11,551.72 11,381.58
05/31/91 11,495.40 11,654.53 11,452.15
06/30/91 11,496.55 11,642.87 11,440.69
07/31/91 11,587.37 11,784.92 11,551.67
08/31/91 11,693.98 11,940.48 11,667.18
09/30/91 11,792.21 12,095.70 11,785.02
10/31/91 11,859.42 12,204.57 11,881.66
11/30/91 11,916.35 12,238.74 11,916.12
12/31/91 12,055.77 12,501.87 12,146.10
01/31/92 12,113.64 12,530.63 12,193.47
02/29/92 12,140.29 12,534.38 12,212.98
03/31/92 12,143.93 12,539.40 12,195.88
04/30/92 12,225.29 12,651.00 12,280.03
05/31/92 12,325.54 12,800.28 12,412.66
06/30/92 12,454.96 13,015.33 12,574.02
07/31/92 12,715.27 13,405.79 12,946.21
08/31/92 12,647.88 13,274.41 12,803.80
09/30/92 12,723.77 13,360.69 12,871.66
10/31/92 12,658.87 13,229.76 12,740.37
11/30/92 12,832.30 13,466.57 12,964.60
12/31/92 12,934.96 13,603.93 13,077.39
01/31/93 13,050.08 13,761.73 13,250.02
02/28/93 13,335.88 14,259.91 13,664.74
03/31/93 13,217.19 14,108.75 13,480.27
04/30/93 13,307.06 14,251.25 13,589.46
05/31/93 13,362.95 14,331.06 13,626.15
06/30/93 13,525.98 14,570.39 13,827.82
07/31/93 13,532.74 14,589.33 13,811.22
08/31/93 13,818.29 14,892.79 14,058.44
09/30/93 13,957.85 15,062.57 14,231.36
10/31/93 13,978.79 15,091.18 14,245.59
11/30/93 13,911.69 14,958.38 14,145.87
12/31/93 14,107.84 15,274.00 14,380.70
01/31/94 14,254.57 15,448.13 14,531.69
02/28/94 13,973.75 15,048.02 14,194.56
03/31/94 13,662.14 14,435.57 13,797.11
04/30/94 13,704.49 14,558.27 13,867.48
05/31/94 13,771.64 14,684.93 13,963.16
06/30/94 13,737.21 14,595.35 13,904.52
07/31/94 13,864.97 14,862.44 14,088.06
08/31/94 13,939.84 14,914.46 14,143.00
09/30/94 13,810.20 14,695.22 13,987.43
10/31/94 13,622.38 14,433.64 13,815.38
11/30/94 13,355.38 14,172.40 13,616.44
12/31/94 13,671.90 14,484.19 13,839.75
01/31/95 13,934.40 14,898.44 14,115.16
02/28/95 14,275.80 15,331.98 14,407.34
03/31/95 14,381.44 15,508.30 14,544.21
04/30/95 14,423.14 15,526.91 14,573.30
05/31/95 14,754.88 16,022.22 14,914.32
06/30/95 14,706.18 15,882.82 14,857.64
07/31/95 14,842.95 16,033.71 15,000.28
08/31/95 14,992.87 16,237.34 15,147.28
09/30/95 15,048.34 16,339.63 15,210.90
10/31/95 15,213.87 16,576.56 15,356.92
11/30/95 15,375.14 16,851.73 15,522.78
12/31/95 15,496.60 17,013.51 15,622.12
01/31/96 15,611.28 17,142.81 15,748.66
02/29/96 15,567.57 17,026.24 15,690.39
03/31/96 15,410.33 16,808.30 15,506.81
04/30/96 15,388.76 16,761.24 15,477.35
05/31/96 15,382.60 16,754.53 15,460.33
06/30/96 15,477.98 16,937.16 15,559.27
07/31/96 15,615.73 17,091.29 15,691.53
08/31/96 15,621.98 17,087.87 15,691.53
09/30/96 15,767.26 17,327.10 15,820.20
10/31/96 15,902.86 17,522.89 15,965.74
11/30/96 16,122.32 17,843.56 16,194.05
12/31/96 16,082.01 17,768.62 16,148.71
01/31/97 16,112.57 17,802.38 16,182.62
02/28/97 16,236.63 17,966.16 16,294.28
03/31/97 16,067.77 17,727.21 16,124.82
04/30/97 16,177.03 17,876.12 16,203.83
05/31/97 16,359.83 18,144.26 16,395.04
06/30/97 16,510.35 18,338.41 16,540.95
07/31/97 16,893.39 18,846.38 16,889.97
08/31/97 16,743.03 18,669.22 16,744.71
09/30/97 16,927.21 18,891.39 16,910.49
10/31/97 17,032.16 19,012.29 16,983.20
11/30/97 17,086.66 19,124.47 17,044.34
12/31/97 17,305.37 19,403.68 17,262.51
01/31/98 17,447.27 19,603.54 17,398.88
02/28/98 17,461.23 19,609.42 17,397.14
03/31/98 17,464.72 19,627.07 17,395.40
04/30/98 17,379.15 19,538.75 17,306.69
05/31/98 17,645.05 19,847.46 17,545.52
06/30/98 17,699.75 19,924.87 17,587.63
07/31/98 17,738.69 19,974.68 17,622.80
08/31/98 18,006.54 20,284.28 17,876.57
09/30/98 18,184.80 20,537.84 18,058.91
10/31/98 18,168.44 20,537.84 18,053.50
11/30/98 18,221.13 20,609.72 18,082.38
12/31/98 18,268.50 20,661.25 18,136.63
01/31/99 18,453.01 20,907.11 18,325.25
02/28/99 18,375.51 20,815.12 18,222.63
03/31/99 18,377.35 20,844.26 18,208.05
04/30/99 18,432.48 20,896.37 18,253.57
05/31/99 18,342.16 20,775.18 18,140.40
06/30/99 18,120.22 20,476.01 17,879.18
</TABLE>
* Prior to October 1, 1997, Norwest Investment Management managed a common trust
fund with an investment objective and policies that were, in all material
respects, equivalent to the Fund. The performance of the Fund includes the
performance of the predecessor common trust fund for periods before it became a
mutual fund on October 1, 1997. The common trust fund performance was adjusted
to reflect the Fund's 1997 estimate of its expense ratio for the first year of
operations as a mutual fund, including any applicable sales load (without giving
effect to any fee waivers or expense reimbursements). The common trust fund was
not registered under the Investment Company Act of 1940 (the "1940 Act"), nor
subject to certain investment limitations, diversification requirements, and
other restrictions imposed by the 1940 Act and the Internal Revenue Code, which,
if applicable, may have adversely affected the performance results.
+ Source: Lipper Analytical Services, Inc. is an independent mutual fund rating
service that ranks funds in various fund categories by making comparative
calculations using total returns. Although gathered from reliable sources, data
accuracy and completeness cannot be guaranteed.
[LOGO]
5
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (CONCLUDED) JUNE 30, 1999
- --------------------------------------------------------------------------------
MINNESOTA TAX-FREE FUND
During the one month period ended June 30, 1999, the Fund returned -1.63%,
underperforming the Lipper Minnesota Municipal Debt Average, which returned
- -1.45%. Early in the fiscal year that ended May 31, 1999, the Fund outperformed
its benchmark as interest rates declined, then underperformed in October 1998,
and June 1999, as rates spiked upward. Since our interest rate outlook over the
past year has been for lower rates, the portfolio duration has been maintained
somewhat long relative to the peer group duration. We focus on favorable coupon
and call structure that we believe will produce good price performance in that
type of interest rate environment. While we have continued to believe in our
outlook long term, it has hurt our performance during the period of volatile
rate movements.
The prime driver of performance was the movement of interest rates, which fell
to all-time low levels early in the fiscal year, then spiked higher in October
1998 and have gradually risen since with the largest increase occurring in June
of 1999. Quality spreads have been very narrow and trading opportunities have
been limited so relative performance has been determined chiefly by the Fund's
position relative to the movement of rates. Municipals traded very cheap
relative to taxable fixed income securities during the early part of the fiscal
year, but as interest rates have moved higher, municipals have outperformed.
Therefore, municipal funds declined less in value as rates rose, than did
taxable fixed income funds during that period.
We expect the Federal Reserve Board (the "Fed") to remain vigilant against
inflation. We believe the Fed's interest rate increase on June 30, 1999, helped
ease inflation worries. We believe the Fed will continue to guide interest rates
higher if the level of growth creates the need. This portfolio is positioned
somewhat long in duration compared to its peer group and has a core,
non-callable segment that will provide good price performance in the interest
rate environment that we anticipate. We will maintain this strategy until and
unless our rate outlook calls for a more cautious strategy.
We expect rates to decline from current levels and that the low inflation
environment will make municipals very attractive relative to other investment
alternatives. Over the past several months, municipals have significantly
outperformed taxable bonds, but still remain attractive by historical norms. The
Minnesota economy remains very strong, which is creating many financing needs
that may provide attractive investment opportunities for the Fund. The strategy
for this Fund focuses on total return performance relative to a peer group
consisting of primarily long-term (longer than seven years) Minnesota funds.
THE OPINIONS EXPRESSED REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH JUNE
30, 1999. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON
MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES AND HOLDINGS OF THE
PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. THE PERFORMANCE FOR OTHER
CLASSES WILL DIFFER.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
MINNESOTA TAX-FREE FUND ("FUND") VS. LEHMAN BROTHERS 10-YEAR MUNICIPAL INDEX
("LEHMAN INDEX") AND LIPPER MINNESOTA MUNICIPAL DEBT AVERAGE ("LIPPER AVERAGE")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, over the past 10 fiscal year
periods. The result is compared with a broad-based securities market index and a
peer based average. The Fund's total return includes operating expenses that
reduce returns, while the total return of the Index does not. Total return of
the Fund would have been lower had certain fees and expenses not been
voluntarily waived and/or reimbursed. The Fund is professionally managed while
the Index is unmanaged and is not available for investment. The Lipper Average
does not include sales charges but does include management fees and expenses.
The Lipper Average is calculated by taking an arithmetic average of the returns
of the funds in the group. Investment return and principal value of an
investment in the Fund will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost. PAST PERFORMANCE
IS NOT PREDICTIVE NOR A GUARANTEE OF FUTURE RESULTS.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1999
---------------------------------------------------------------
LEHMAN LIPPER
A SHARES B SHARES* I SHARES** INDEX AVERAGE+
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
ONE YEAR (2.71%) (2.69%) 1.87% 2.29% 1.77%
FIVE YEAR 5.63% 5.64% 6.58% 7.11% 5.71%
TEN YEAR 5.94% 5.61% 6.42% 7.77% 6.32%
VALUE JUNE 30, 1999 $ 17,805 $ 17,268 $ 18,638 $ 21,146 $ 18,460
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
6/30/99 TAX-FREE ANNUAL
<S> <C> <C> <C> <C> <C>
Minn Tax-Free A Shares B Shares I Shares Lehman Index Lipper Average
06/30/89 9,550.00 10,000.00 10,000.00 10,000.00 10,000.00
07/31/89 9,662.69 10,111.00 10,118.00 10,144.00 10,092.00
08/31/89 9,589.25 10,028.09 10,041.10 10,084.15 10,025.39
09/30/89 9,562.40 9,993.99 10,012.99 10,036.75 9,985.29
10/31/89 9,687.67 10,118.92 10,144.16 10,151.17 10,113.10
11/30/89 9,813.61 10,244.39 10,276.03 10,320.70 10,239.52
12/31/89 9,866.60 10,292.54 10,331.52 10,427.00 10,300.95
01/31/90 9,838.98 10,256.52 10,302.59 10,395.72 10,238.12
02/28/90 9,924.58 10,339.60 10,392.23 10,468.49 10,335.38
03/31/90 9,919.61 10,328.22 10,387.03 10,451.74 10,355.02
04/30/90 9,840.26 10,239.40 10,303.93 10,521.77 10,258.72
05/31/90 10,032.14 10,432.92 10,504.86 10,750.09 10,466.97
06/30/90 10,115.41 10,513.26 10,592.05 10,851.14 10,555.94
07/31/90 10,226.68 10,622.60 10,708.56 11,001.97 10,709.00
08/31/90 10,133.62 10,519.56 10,611.12 10,843.54 10,539.80
09/30/90 10,139.70 10,519.56 10,617.48 10,845.71 10,566.15
10/31/90 10,305.99 10,685.77 10,791.61 11,084.32 10,713.01
11/30/90 10,450.27 10,828.96 10,942.69 11,310.44 10,928.35
12/31/90 10,491.03 10,863.61 10,985.37 11,337.58 10,980.80
01/31/91 10,595.94 10,965.73 11,095.22 11,524.65 11,095.00
02/28/91 10,676.47 11,043.58 11,179.55 11,623.77 11,168.23
03/31/91 10,679.67 11,040.27 11,182.90 11,617.95 11,189.45
04/30/91 10,775.79 11,133.01 11,283.55 11,778.28 11,317.01
05/31/91 10,856.61 11,209.83 11,368.17 11,866.62 11,415.47
06/30/91 10,884.83 11,231.12 11,397.73 11,852.38 11,402.91
07/31/91 10,938.17 11,279.42 11,453.58 11,976.83 11,536.32
08/31/91 11,039.89 11,377.55 11,560.10 12,138.52 11,657.46
09/30/91 11,122.69 11,454.92 11,646.80 12,324.23 11,779.86
10/31/91 11,189.43 11,515.63 11,716.68 12,424.06 11,865.85
11/30/91 11,221.88 11,542.11 11,750.66 12,445.18 11,882.46
12/31/91 11,384.59 11,701.39 11,921.04 12,710.26 12,098.72
01/31/92 11,421.03 11,731.82 11,959.19 12,736.96 12,130.18
02/29/92 11,450.72 11,755.28 11,990.28 12,717.85 12,165.36
03/31/92 11,505.68 11,804.65 12,047.84 12,698.77 12,186.04
04/30/92 11,572.42 11,866.04 12,117.71 12,819.41 12,270.12
05/31/92 11,674.25 11,963.34 12,224.35 12,969.40 12,406.32
06/30/92 11,798.00 12,019.57 12,353.93 13,193.77 12,594.90
07/31/92 12,042.22 12,324.86 12,609.65 13,626.53 12,986.60
08/31/92 11,956.72 12,229.96 12,520.13 13,465.73 12,830.76
09/30/92 12,034.44 12,302.12 12,601.51 13,577.50 12,874.38
10/31/92 11,962.23 12,219.70 12,525.90 13,439.01 12,673.54
11/30/92 12,129.70 12,383.44 12,701.26 13,684.94 12,949.83
12/31/92 12,243.72 12,494.89 12,820.65 13,843.69 13,094.87
01/31/93 12,362.49 12,603.60 12,945.01 14,076.26 13,253.31
02/28/93 12,702.45 12,948.93 13,301.00 14,591.45 13,672.12
03/31/93 12,565.27 12,797.43 13,157.35 14,378.42 13,557.27
04/30/93 12,692.18 12,913.89 13,290.24 14,515.01 13,702.34
05/31/93 12,765.79 12,977.17 13,367.32 14,565.81 13,783.18
06/30/93 12,962.39 13,177.01 13,573.18 14,852.76 14,003.71
07/31/93 12,984.42 13,187.56 13,596.25 14,889.89 14,016.31
08/31/93 13,267.48 13,451.31 13,904.89 15,198.11 14,306.45
09/30/93 13,478.43 13,657.11 14,113.46 15,385.05 14,485.28
10/31/93 13,473.04 13,629.80 14,107.82 15,409.67 14,511.36
11/30/93 13,335.62 13,494.86 13,976.61 15,283.31 14,392.36
12/31/93 13,619.67 13,760.71 14,261.74 15,608.84 14,662.94
01/31/94 13,759.95 13,906.58 14,421.47 15,800.83 14,815.43
02/28/94 13,393.93 13,528.32 14,024.88 15,367.89 14,459.86
03/31/94 12,860.86 12,979.07 13,479.31 14,777.76 13,869.90
04/30/94 12,911.01 13,021.90 13,531.88 14,963.96 13,917.06
05/31/94 13,015.59 13,118.26 13,641.49 15,059.73 14,061.80
06/30/94 12,925.79 13,019.87 13,547.36 14,994.97 13,981.64
07/31/94 13,070.55 13,156.58 13,684.19 15,246.89 14,212.34
08/31/94 13,150.28 13,228.94 13,767.66 15,306.35 14,246.45
09/30/94 12,933.30 13,002.73 13,540.50 15,099.72 14,037.03
10/31/94 12,736.72 12,784.28 13,334.68 14,879.26 13,766.11
11/30/94 12,488.35 12,540.10 13,074.65 14,598.04 13,432.97
12/31/94 12,803.06 12,847.33 13,417.21 14,860.81 13,772.83
01/31/95 13,178.19 13,216.05 13,795.58 15,245.70 14,180.50
02/28/95 13,568.26 13,599.32 14,203.92 15,677.15 14,583.23
03/31/95 13,678.17 13,687.71 14,318.98 15,888.80 14,686.77
04/30/95 13,685.01 13,700.03 14,326.14 15,907.86 14,688.24
05/31/95 14,128.40 14,120.62 14,790.30 16,412.14 15,098.04
06/30/95 13,994.18 13,990.71 14,649.79 16,310.39 14,938.00
07/31/95 14,071.15 14,059.27 14,730.37 16,550.15 15,008.21
08/31/95 14,234.37 14,213.92 14,901.24 16,775.23 15,156.79
09/30/95 14,315.51 14,286.41 14,986.18 16,882.59 15,250.76
10/31/95 14,558.87 14,519.28 15,240.94 17,076.74 15,468.85
11/30/95 14,829.67 14,767.56 15,524.42 17,305.57 15,731.82
12/31/95 15,006.14 14,947.72 15,709.17 17,411.13 15,897.00
01/31/96 15,096.18 15,028.44 15,803.42 17,586.99 15,963.77
02/29/96 14,960.31 14,884.17 15,675.41 17,368.91 15,850.43
03/31/96 14,743.39 14,657.93 15,432.44 17,308.12 15,592.07
04/30/96 14,693.26 14,597.83 15,379.97 17,259.65 15,534.38
05/31/96 14,690.32 14,586.15 15,376.90 17,423.62 15,554.57
06/30/96 14,876.89 14,762.65 15,572.18 17,590.89 15,710.12
07/31/96 14,998.88 14,860.08 15,699.88 17,759.76 15,838.94
08/31/96 14,953.88 14,819.96 15,652.78 17,759.76 15,837.35
09/30/96 15,200.62 15,055.60 15,911.05 17,942.69 16,043.24
10/31/96 15,367.83 15,212.17 16,086.07 18,168.76 16,198.86
11/30/96 15,638.30 15,455.57 16,369.18 18,535.77 16,454.80
12/31/96 15,574.18 15,396.84 16,302.07 18,452.36 16,387.34
01/31/97 15,571.07 15,382.98 16,298.81 18,524.33 16,392.25
02/28/97 15,692.52 15,493.74 16,425.94 18,698.46 16,531.59
03/31/97 15,475.97 15,270.63 16,199.26 18,447.90 16,331.56
04/30/97 15,646.20 15,414.17 16,377.45 18,584.41 16,463.84
05/31/97 15,863.69 15,633.05 16,605.10 18,848.31 16,671.29
06/30/97 16,019.15 15,775.31 16,767.83 19,055.64 16,836.33
07/31/97 16,509.34 16,247.00 17,280.93 19,591.10 17,274.08
08/31/97 16,289.76 16,021.16 17,066.64 19,401.07 17,111.70
09/30/97 16,508.04 16,224.63 17,278.27 19,647.46 17,293.08
10/31/97 16,638.46 16,341.45 17,414.77 19,751.60 17,400.30
11/30/97 16,736.62 16,426.42 17,517.51 19,842.45 17,496.00
12/31/97 17,006.08 16,679.39 17,799.55 20,155.96 17,721.70
01/31/98 17,184.65 16,842.85 17,986.44 20,379.69 17,874.11
02/28/98 17,186.37 16,819.27 17,988.24 20,377.66 17,870.53
03/31/98 17,193.24 16,829.36 17,995.44 20,363.39 17,890.19
04/30/98 17,072.89 16,701.46 17,869.47 20,251.39 17,815.05
05/31/98 17,410.93 17,020.46 18,223.28 20,595.67 18,069.81
06/30/98 17,478.83 17,061.30 18,294.35 20,671.87 18,138.47
07/31/98 17,501.56 17,088.60 18,318.14 20,704.95 18,169.31
08/31/98 17,809.58 17,379.11 18,657.02 21,065.21 18,436.40
09/30/98 18,069.60 17,605.04 18,912.62 21,379.08 18,626.29
10/31/98 17,946.73 17,490.60 18,784.02 21,387.64 18,587.18
11/30/98 18,029.29 17,560.57 18,870.42 21,451.80 18,657.81
12/31/98 18,067.15 17,569.35 18,910.05 21,518.30 18,702.59
01/31/99 18,235.17 17,738.01 19,085.92 21,847.53 18,869.04
02/28/99 18,151.29 17,647.55 19,000.03 21,650.90 18,791.68
03/31/99 18,156.73 17,642.25 19,005.73 21,640.08 18,797.31
04/30/99 18,209.39 17,682.83 19,060.85 21,698.50 18,842.43
05/31/99 18,100.13 17,564.36 18,946.48 21,546.61 18,731.26
06/30/99 17,805.10 17,267.52 18,637.65 21,145.85 18,459.65
</TABLE>
* 8/6/93 was the inception date of Class B Shares of the Fund. Returns prior to
that date are for Class A Shares, adjusted for Class B share expenses.
** 8/2/93 was the inception date of Class I Shares of the Fund. Returns prior to
that date are for Class A Shares.
+ Source: Lipper Analytical Services, Inc. is an independent mutual fund rating
service that ranks funds in various fund categories by making comparative
calculations using total returns. Although gathered from reliable sources, data
accuracy and completeness cannot be guaranteed.
THE RETURNS ABOVE ARE CALCULATED USING THE MAXIMUM 4.50% SALES CHARGE FOR CLASS
A SHARES AND THE MAXIMUM 5.00% DEFERRED SALES CHARGE (DECLINING TO ZERO AFTER
THE SIXTH YEAR) FOR CLASS B SHARES.
[LOGO]
6
<PAGE>
INDEPENDENT AUDITORS' REPORT JUNE 30, 1999
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareholders
Norwest Advantage Funds
We have audited the accompanying statements of assets
and liabilities of Limited Term Tax-Free Fund, Tax-Free
Income Fund, Colorado Tax-Free Fund, Minnesota
Intermediate Tax-Free Fund and Minnesota Tax-Free Fund,
portfolios of Norwest Advantage Funds (collectively the
"Funds"), including the schedules of investments, as of
June 30, 1999, and the related statements of operations
and statements of changes in net assets for the periods
presented on pages 10 to 15, and financial highlights for
the periods presented on pages 16 to 19. These financial
statements and financial highlights are the responsibility
of the Funds' management. Our responsibility is to express
an opinion on these financial statements and financial
highlights based on our audits.
We conducted our audits in accordance with generally
accepted auditing standards. Those standards require that
we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and
financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures
included confirmation of securities owned as of June 30,
1999, by correspondence with the custodian and brokers. An
audit also includes assessing the accounting principles
used and significant estimates made by management, as well
as evaluating the overall financial statement
presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial
highlights referred to above present fairly, in all
material respects, the financial position of the funds as
of June 30, 1999, the results of their operations and
changes in their net assets for the periods presented on
pages 10 to 15 and financial highlights for each of the
periods presented on pages 16 to 19, in conformity with
generally accepted accounting principles.
/s/ KMPG LLP
------------------------
Boston, Massachusetts
August 16, 1999
[LOGO]
7
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES JUNE 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MINNESOTA
LIMITED TERM TAX-FREE COLORADO INTERMEDIATE MINNESOTA
TAX-FREE INCOME TAX-FREE TAX-FREE TAX-FREE
FUND FUND FUND FUND FUND
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments (Note 2)
Investments at cost......... $ 87,071,143 $ 361,639,544 $ 98,580,195 $211,115,434 $ 85,448,984
Net unrealized appreciation
(depreciation).......... (195,078) 4,603,252 638,379 5,322,927 750,961
------------- ------------- ------------- ------------- -------------
TOTAL INVESTMENTS AT VALUE... 86,876,065 366,242,796 99,218,574 216,438,361 86,199,945
Cash......................... 8,459 16,917 - - -
Receivable for dividends,
interest and other
receivables.............. 1,142,966 5,720,841 941,815 3,732,860 1,493,604
Receivable for investments
sold..................... - - 697,875 - -
Receivable for Fund shares
issued................... 189,033 1,124,332 3,662 105,000 218,015
Organization costs, net of
amortization (Note 2).... - - - 1,897 -
------------- ------------- ------------- ------------- -------------
TOTAL ASSETS.................. 88,216,523 373,104,886 100,861,926 220,278,118 87,911,564
------------- ------------- ------------- ------------- -------------
LIABILITIES
Payable for investments
purchased................ 2,643,754 6,367,820 1,441,533 - 1,591,492
Payable for Fund shares
redeemed................. 902,659 1,342,824 2,409 59,044 385,980
Dividends payable............ 200,545 1,232,009 228,423 844,891 142,818
Payable to investment adviser
and affiliates (Note
3)....................... 35,274 154,662 35,975 93,344 29,679
Payable to other related
parties (Note 3)......... - - 1,530 - 1,715
Accrued expenses and other
liabilities.............. 15,220 78,813 26,233 22,367 58,112
------------- ------------- ------------- ------------- -------------
TOTAL LIABILITIES............. 3,797,452 9,176,128 1,736,103 1,019,646 2,209,796
------------- ------------- ------------- ------------- -------------
NET ASSETS.................... $ 84,419,071 $ 363,928,758 $ 99,125,823 $219,258,472 $ 85,701,768
------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- -------------
COMPONENTS OF NET ASSETS
Paid in capital.............. $ 85,321,648 $ 362,039,841 $ 99,183,811 $214,072,620 $ 85,214,788
Distributions in excess of
net investment income.... (61,237) (510,093) - (5) (43,360)
Accumulated net realized loss
from investments......... (646,262) (2,204,242) (696,367) (137,070) (220,621)
Net unrealized appreciation
(depreciation) on
investments.............. (195,078) 4,603,252 638,379 5,322,927 750,961
------------- ------------- ------------- ------------- -------------
NET ASSETS.................... $ 84,419,071 $ 363,928,758 $ 99,125,823 $219,258,472 $ 85,701,768
------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- -------------
NET ASSETS BY SHARE CLASS
A Shares..................... $ - $ 41,880,937 $ 39,065,597 $ - $ 37,138,957
B Shares..................... - 17,878,121 10,959,005 - 21,365,992
I Shares..................... 84,419,071 304,169,700 49,101,221 219,258,472 27,196,819
------------- ------------- ------------- ------------- -------------
NET ASSETS.................... $ 84,419,071 $ 363,928,758 $ 99,125,823 $219,258,472 $ 85,701,768
------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- -------------
SHARES OF BENEFICIAL INTEREST
A Shares..................... - 4,099,462 3,792,686 - 3,457,371
B Shares..................... - 1,749,586 1,062,733 - 1,989,365
I Shares..................... 8,128,058 29,753,932 4,766,108 22,491,594 2,531,691
NET ASSET VALUE PER SHARE (Net
Assets Divided by Shares of
Beneficial Interest)
A Shares..................... $ - $ 10.22 $ 10.30 $ - $ 10.74
B Shares..................... $ - $ 10.22 $ 10.31 $ - $ 10.74
I Shares..................... $ 10.39 $ 10.22 $ 10.30 $ 9.75 $ 10.74
OFFERING PRICE PER SHARE
(NAV/(1-Maximum Sales
Load)
A Shares..................... $ - $ 10.70 $ 10.79 $ - $ 11.25
B Shares..................... $ - $ 10.22 $ 10.31 $ - $ 10.74
I Shares..................... $ 10.39 $ 10.22 $ 10.30 $ 9.75 $ 10.74
MAXIMUM SALES LOAD
A Shares..................... N/A 4.50% 4.50% N/A 4.50%
B Shares..................... N/A N/A N/A N/A N/A
I Shares..................... N/A N/A N/A N/A N/A
</TABLE>
See Notes to Financial Statements
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<PAGE>
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9
<PAGE>
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIMITED TERM TAX-FREE
TAX-FREE INCOME
FUND FUND
---------------------------- ----------------------------
ONE MONTH ONE MONTH
ENDED ONE YEAR ENDED ONE YEAR
JUNE 30, ENDED JUNE 30, ENDED
1999 MAY 31, 1999 1999 MAY 31, 1999
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest income.............. $ 346,831 $ 3,382,796 $ 1,718,395 $19,642,349
------------ ------------ ------------ ------------
EXPENSES
Advisory (Note 3)............ 35,274 344,741 150,448 1,808,783
Management and Administration
(Note 3)................. 7,054 68,948 30,090 361,756
Transfer agent (Note 3)
A Shares.................. - - 8,647 107,416
B Shares.................. - - 3,639 34,062
I Shares.................. 17,637 172,371 62,939 762,914
Custody (Note 3)............. 1,411 13,790 4,238 51,176
Accounting (Note 3).......... 4,000 42,250 8,000 85,250
Legal........................ 55 909 232 5,544
Registration
A Shares.................. - - 2,674 14,644
B Shares.................. - - 2,562 8,115
I Shares.................. 2,550 39,147 3,603 18,395
Audit........................ 9,000 13,700 9,000 13,700
Trustees..................... - 749 - 4,206
Distribution fees - B Shares
(Note 3)................. - - 14,557 136,247
Amortization of organization
costs (Note 2)........... - - - -
Miscellaneous................ 2,400 17,949 5,704 70,367
------------ ------------ ------------ ------------
TOTAL EXPENSES............... 79,381 714,554 306,333 3,482,575
Fees waived and expenses
reimbursed (Note 3)... (33,369) (266,372) (114,160) (1,209,700)
------------ ------------ ------------ ------------
NET EXPENSES................. 46,012 448,182 192,173 2,272,875
------------ ------------ ------------ ------------
NET INVESTMENT INCOME........ 300,819 2,934,614 1,526,222 17,369,474
------------ ------------ ------------ ------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss)
from investments...... (363,274) (145,267) (1,458,879) 3,445,224
Net change in unrealized
depreciation of
investments........... (875,731) (415,646) (6,408,070) (7,184,375)
------------ ------------ ------------ ------------
NET REALIZED AND UNREALIZED
LOSS ON INVESTMENTS...... (1,239,005) (560,913) (7,866,949) (3,739,151)
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN
NET ASSETS RESULTING FROM
OPERATIONS............... $ (938,186) $ 2,373,701 $(6,340,727) $13,630,323
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
</TABLE>
See Notes to Financial Statements
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10
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MINNESOTA
COLORADO INTERMEDIATE MINNESOTA
TAX-FREE TAX-FREE TAX-FREE
FUND FUND FUND
---------------------------- ---------------------------- ----------------------------
ONE MONTH ONE MONTH ONE MONTH
ENDED ONE YEAR ENDED ONE YEAR ENDED ONE YEAR
JUNE 30, ENDED JUNE 30, ENDED JUNE 30, ENDED
1999 MAY 31, 1999 1999 MAY 31, 1999 1999 MAY 31, 1999
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest income.............. $ 448,453 $ 4,696,387 $ 1,004,091 $11,771,203 $ 375,373 $ 4,112,192
------------ ------------ ------------ ------------ ------------ ------------
EXPENSES
Advisory (Note 3)............ 40,421 442,396 45,154 540,960 35,333 394,355
Management and Administration
(Note 3)................. 8,084 88,478 18,062 216,384 7,066 78,870
Transfer agent (Note 3)
A Shares.................. 8,049 96,898 - - 7,703 90,579
B Shares.................. 2,240 24,432 - - 4,396 49,192
I Shares.................. 9,921 99,867 45,154 540,960 5,567 57,406
Custody (Note 3)............. 1,617 17,696 3,036 36,638 1,413 15,774
Accounting (Note 3).......... 6,000 63,250 4,500 56,250 6,000 62,250
Legal........................ 62 2,981 138 5,985 54 2,885
Registration
A Shares.................. 11 3,215 - - 6 2,805
B Shares.................. 19 863 - - 29 2,032
I Shares.................. 78 4,396 40 5,010 37 1,783
Audit........................ 9,000 13,075 9,000 15,425 9,000 13,399
Trustees..................... - 1,006 - 2,551 - 906
Distribution fees - B Shares
(Note 3)................. 8,960 97,729 - - 17,584 196,769
Amortization of organization
costs (Note 2)........... - - 49 584 - -
Miscellaneous................ 2,042 33,693 5,311 48,505 2,085 36,783
------------ ------------ ------------ ------------ ------------ ------------
TOTAL EXPENSES............... 96,504 989,975 130,444 1,469,252 96,273 1,005,788
Fees waived and expenses
reimbursed (Note 3)... (41,067) (385,757) (21,696) (170,867) (40,480) (384,934)
------------ ------------ ------------ ------------ ------------ ------------
NET EXPENSES................. 55,437 604,218 108,748 1,298,385 55,793 620,854
------------ ------------ ------------ ------------ ------------ ------------
NET INVESTMENT INCOME........ 393,016 4,092,169 895,343 10,472,818 319,580 3,491,338
------------ ------------ ------------ ------------ ------------ ------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss)
from investments...... (344,710) 501,049 (47,325) 210,070 (162,826) 216,836
Net change in unrealized
depreciation of
investments........... (2,033,191) (1,664,572) (3,578,156) (2,375,879) (1,579,990) (920,274)
------------ ------------ ------------ ------------ ------------ ------------
NET REALIZED AND UNREALIZED
LOSS ON INVESTMENTS...... (2,377,901) (1,163,523) (3,625,481) (2,165,809) (1,742,816) (703,438)
------------ ------------ ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN
NET ASSETS RESULTING FROM
OPERATIONS............... $(1,984,885) $ 2,928,646 $(2,730,138) $ 8,307,009 $(1,423,236) $ 2,787,900
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
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11
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE YEARS OR PERIODS ENDED MAY 31, 1998, MAY 31, 1999 AND JUNE 30, 1999
MINNESOTA
LIMITED TERM TAX-FREE COLORADO INTERMEDIATE MINNESOTA
TAX-FREE INCOME TAX-FREE TAX-FREE TAX-FREE
FUND FUND FUND FUND FUND
-------------- ------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
NET ASSETS - MAY 31, 1997
(d)....................... $ 40,990,123 $ 296,406,673 $ 60,940,499 $ - $ 48,002,309
-------------- ------------- -------------- -------------- -------------
OPERATIONS
Net investment income........ 2,169,354 15,876,439 3,267,484 7,005,118 2,779,840
Net realized gain (loss) from
investments.............. (40,641) 5,515,394 477,006 329,218 348,871
Net change in unrealized
appreciation of
investments.............. 949,055 8,997,364 2,416,938 11,276,962 2,099,959
-------------- ------------- -------------- -------------- -------------
Net increase in net assets
resulting from
operations............... 3,077,768 30,389,197 6,161,428 18,611,298 5,228,670
-------------- ------------- -------------- -------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM
Net investment income
A Shares.................... - (1,575,363) (1,535,133) - (1,457,615)
B Shares.................... - (392,899) (335,170) - (550,306)
I Shares.................... (2,169,354) (13,908,177) (1,397,181) (7,005,118) (771,919)
Net realized gain on
investments
A Shares.................... - - - - -
B Shares.................... - - - - -
I Shares.................... (49,319) - - (90,488) -
-------------- ------------- -------------- -------------- -------------
Total distributions to
shareholders............. (2,218,673) (15,876,439) (3,267,484) (7,095,606) (2,779,840)
-------------- ------------- -------------- -------------- -------------
NET INCREASE FROM CAPITAL
SHARE TRANSACTIONS........ 12,753,190 22,005,402 11,917,170 198,169,405 20,430,717
-------------- ------------- -------------- -------------- -------------
NET INCREASE IN NET ASSETS.... 13,612,285 36,518,160 14,811,114 209,685,097 22,879,547
-------------- ------------- -------------- -------------- -------------
NET ASSETS - MAY 31, 1998
(a)....................... 54,602,408 332,924,833 75,751,613 209,685,097 70,881,856
-------------- ------------- -------------- -------------- -------------
OPERATIONS
Net investment income........ 2,934,614 17,369,474 4,092,169 10,472,818 3,491,338
Net realized gain (loss) from
investments.............. (145,267) 3,445,224 501,049 210,070 216,836
Net change in unrealized
depreciation of
investments.............. (415,646) (7,184,375) (1,664,572) (2,375,879) (920,274)
-------------- ------------- -------------- -------------- -------------
Net increase in net assets
resulting from
operations............... 2,373,701 13,630,323 2,928,646 8,307,009 2,787,900
-------------- ------------- -------------- -------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM
Net investment income
A Shares.................... - (2,067,331) (1,824,431) - (1,672,985)
B Shares.................... - (551,723) (386,596) - (758,676)
I Shares.................... (2,995,851) (14,750,632) (1,881,142) (10,472,823) (1,061,276)
Net realized gain on
investments
A Shares.................... - (44,165) (131,438) - (32,277)
B Shares.................... - (11,881) (32,338) - (17,801)
I Shares.................... - (278,688) (135,528) (538,545) (20,012)
-------------- ------------- -------------- -------------- -------------
Total distributions to
shareholders............. (2,995,851) (17,704,420) (4,391,473) (11,011,368) (3,563,027)
-------------- ------------- -------------- -------------- -------------
NET INCREASE FROM CAPITAL
SHARE TRANSACTIONS........ 34,242,640 44,267,336 25,505,026 15,972,558 16,902,134
-------------- ------------- -------------- -------------- -------------
NET INCREASE IN NET ASSETS.... 33,620,490 40,193,239 24,042,199 13,268,199 16,127,007
-------------- ------------- -------------- -------------- -------------
NET ASSETS - MAY 31, 1999
(b)....................... 88,222,898 373,118,072 99,793,812 222,953,296 87,008,863
-------------- ------------- -------------- -------------- -------------
OPERATIONS
Net investment income........ 300,819 1,526,222 393,016 895,343 319,580
Net realized loss from
investments.............. (363,274) (1,458,879) (344,710) (47,325) (162,826)
Net change in unrealized
depreciation of
investments.............. (875,731) (6,408,070) (2,033,191) (3,578,156) (1,579,990)
-------------- ------------- -------------- -------------- -------------
Net decrease in net assets
resulting from
operations............... (938,186) (6,340,727) (1,984,885) (2,730,138) (1,423,236)
-------------- ------------- -------------- -------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM
Net investment income
A Shares.................... - (176,731) (159,400) - (145,466)
B Shares.................... - (63,322) (37,423) - (69,305)
I Shares.................... (300,819) (1,286,169) (196,193) (895,343) (104,809)
-------------- ------------- -------------- -------------- -------------
Total distributions to
shareholders............. (300,819) (1,526,222) (393,016) (895,343) (319,580)
-------------- ------------- -------------- -------------- -------------
NET INCREASE (DECREASE) FROM
CAPITAL SHARE
TRANSACTIONS.............. (2,564,822) (1,322,365) 1,709,912 (69,343) 435,721
-------------- ------------- -------------- -------------- -------------
NET DECREASE IN NET ASSETS.... (3,803,827) (9,189,314) (667,989) (3,694,824) (1,307,095)
-------------- ------------- -------------- -------------- -------------
NET ASSETS - JUNE 30, 1999
(c)....................... $ 84,419,071 $ 363,928,758 $ 99,125,823 $ 219,258,472 $ 85,701,768
-------------- ------------- -------------- -------------- -------------
-------------- ------------- -------------- -------------- -------------
(a) Includes distributions in
excess of net investment
income, May 31, 1998...... $ - $ (509,881) $ - $ - $ (41,761)
-------------- ------------- -------------- -------------- -------------
-------------- ------------- -------------- -------------- -------------
(b) Includes distributions in
excess of net investment
income, May 31, 1999...... $ (61,237) $ (510,093) $ - $ (5) $ (43,360)
-------------- ------------- -------------- -------------- -------------
-------------- ------------- -------------- -------------- -------------
(c) Includes distributions in
excess of net investment
income, June 30, 1999..... $ (61,237) $ (510,093) $ - $ (5) $ (43,360)
-------------- ------------- -------------- -------------- -------------
-------------- ------------- -------------- -------------- -------------
(d) Beginning of period....... Jun 1, 1997 Jun 1, 1997 Jun 1, 1997 Oct 1, 1997 Jun 1, 1997
</TABLE>
See Notes to Financial Statements
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13
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE YEARS OR PERIODS ENDED MAY 31, 1998, MAY 31, 1999 AND JUNE 30, 1999
MINNESOTA
LIMITED TERM TAX-FREE COLORADO INTERMEDIATE MINNESOTA
TAX-FREE INCOME TAX-FREE TAX-FREE TAX-FREE
FUND FUND FUND FUND FUND
------------- ------------- ------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS --
DOLLARS
PERIOD ENDED MAY 31, 1998 (a)
SALE OF SHARES
A shares.................... $ - $ 10,396,839 $ 7,477,552 $ - $ 8,705,064
B shares.................... - 4,015,589 2,868,087 - 6,079,249
I shares.................... 57,459,796 207,775,946 8,617,144 229,127,100 11,447,292
SHARES ISSUED IN CONVERSION
I shares (Note 6)........... - - - 204,022,181 -
REINVESTMENT OF DISTRIBUTIONS
A shares.................... - 1,248,714 1,197,281 - 1,064,641
B shares.................... - 302,167 232,515 - 409,199
I shares.................... 274,112 724,544 34,709 186,581 244,073
REDEMPTION OF SHARES
A shares.................... - (7,217,647) (3,579,424) - (3,166,663)
B shares.................... - (986,449) (1,495,848) - (1,616,019)
I shares.................... (44,980,718) (194,254,301) (3,434,846) (235,166,457) (2,736,119)
------------- ------------- ------------- -------------- -------------
NET INCREASE IN NET ASSETS
FROM CAPITAL SHARE
ACTIVITY.................. $ 12,753,190 $ 22,005,402 $ 11,917,170 $ 198,169,405 $ 20,430,717
------------- ------------- ------------- -------------- -------------
------------- ------------- ------------- -------------- -------------
YEAR ENDED MAY 31, 1999
SALE OF SHARES
A shares.................... $ - $ 26,792,072 $ 8,062,435 $ - $ 9,934,681
B shares.................... - 7,878,776 2,711,082 - 7,870,849
I shares.................... 54,231,330 69,131,581 25,981,176 35,117,941 10,924,972
REINVESTMENT OF DISTRIBUTIONS
A shares.................... - 1,475,236 1,484,203 - 1,117,394
B shares.................... - 398,550 283,211 - 531,439
I shares.................... 707,065 1,553,614 99,412 908,892 290,837
REDEMPTION OF SHARES
A shares.................... - (19,489,915) (3,272,343) - (6,075,592)
B shares.................... - (1,152,002) (1,091,277) - (3,243,082)
I shares.................... (20,695,755) (42,320,576) (8,752,873) (20,054,275) (4,449,364)
------------- ------------- ------------- -------------- -------------
NET INCREASE IN NET ASSETS
FROM CAPITAL SHARE
ACTIVITY.................. $ 34,242,640 $ 44,267,336 $ 25,505,026 $ 15,972,558 $ 16,902,134
------------- ------------- ------------- -------------- -------------
------------- ------------- ------------- -------------- -------------
MONTH ENDED JUNE 30, 1999
SALE OF SHARES
A shares.................... $ - $ 685,836 $ 543,289 $ - $ 431,418
B shares.................... - 372,744 342,246 - 744,032
I shares.................... 1,429,530 4,618,493 2,077,373 2,116,402 929,145
REINVESTMENT OF DISTRIBUTIONS
A shares.................... - 128,450 122,356 - 102,632
B shares.................... - 48,648 27,302 - 52,334
I shares.................... 98,855 125,372 20,222 51,123 31,248
REDEMPTION OF SHARES
A SHARES.................... - (1,410,303) (607,233) - (887,055)
B shares.................... - (137,275) (56,299) - (491,100)
I shares.................... (4,093,207) (5,754,330) (759,344) (2,236,868) (476,933)
------------- ------------- ------------- -------------- -------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM CAPITAL SHARE
ACTIVITY.................. $ (2,564,822) $ (1,322,365) $ 1,709,912 $ (69,343) $ 435,721
------------- ------------- ------------- -------------- -------------
------------- ------------- ------------- -------------- -------------
October 1,
(a) Beginning of period..... June 1, 1997 June 1, 1997 June 1, 1997 1997 June 1, 1997
</TABLE>
See Notes to Financial Statements
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14
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MINNESOTA
LIMITED TERM TAX-FREE COLORADO INTERMEDIATE MINNESOTA
TAX-FREE INCOME TAX-FREE TAX-FREE TAX-FREE
FUND FUND FUND FUND FUND
------------- ------------- ------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS --
SHARES
PERIOD ENDED MAY 31, 1998 (a)
SALE OF SHARES
A shares.................... - 999,879 709,964 - 798,495
B shares.................... - 386,728 270,553 - 555,223
I shares.................... 5,459,471 20,205,190 812,957 23,101,594 1,051,163
SHARES ISSUED IN CONVERSION
I shares (Note 6)........... - - - 21,500,494 -
REINVESTMENT OF DISTRIBUTIONS
A shares.................... - 120,185 113,433 - 97,609
B shares.................... - 29,057 21,971 - 37,450
I shares.................... 25,928 69,534 3,282 21,150 22,358
REDEMPTION OF SHARES
A shares.................... - (693,862) (340,595) - (290,915)
B shares.................... - (94,437) (142,636) - (147,723)
I shares.................... (4,274,931) (18,916,946) (327,437) (23,712,518) (250,492)
------------- ------------- ------------- -------------- -------------
NET INCREASE IN SHARES
OUTSTANDING............... 1,210,468 2,105,328 1,121,492 20,910,720 1,873,168
------------- ------------- ------------- -------------- -------------
------------- ------------- ------------- -------------- -------------
YEAR ENDED MAY 31, 1999
SALE OF SHARES
A shares.................... - 2,543,283 766,228 - 922,167
B shares.................... - 747,909 258,066 - 719,314
I shares.................... 5,104,840 6,519,161 2,654,052 3,498,378 987,346
REINVESTMENT OF DISTRIBUTIONS
A shares.................... - 113,579 116,262 - 83,650
B shares.................... - 31,924 20,601 - 36,310
I shares.................... 56,578 124,119 7,663 82,447 21,678
REDEMPTION OF SHARES
A shares.................... - (1,832,413) (298,588) - (556,377)
B shares.................... - (108,363) (101,120) - (292,516)
I shares.................... (1,944,631) (3,983,394) (1,049,402) (1,992,667) (398,588)
------------- ------------- ------------- -------------- -------------
NET INCREASE IN SHARES
OUTSTANDING............... 3,216,787 4,155,805 2,373,762 1,588,158 1,522,984
------------- ------------- ------------- -------------- -------------
------------- ------------- ------------- -------------- -------------
MONTH ENDED JUNE 30, 1999
SALE OF SHARES
A shares.................... - 71,172 52,172 - 39,870
B shares.................... - 36,374 32,731 - 68,928
I shares.................... 137,084 448,826 200,981 215,513 85,769
REINVESTMENT OF DISTRIBUTIONS
A shares.................... - 12,666 11,879 - 9,556
B shares.................... - 4,760 2,648 - 4,869
I shares.................... 9,515 10,575 1,963 5,243 2,910
REDEMPTION OF SHARES
A shares.................... - (141,758) (58,698) - (82,316)
B shares.................... - (13,371) (5,424) - (45,705)
I shares.................... (391,925) (560,492) (73,332) (228,040) (44,102)
------------- ------------- ------------- -------------- -------------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING........ (245,326) (131,248) 164,920 (7,284) 39,779
------------- ------------- ------------- -------------- -------------
------------- ------------- ------------- -------------- -------------
October 1,
(a) Beginning of period..... June 1, 1997 June 1, 1997 June 1, 1997 1997 June 1, 1997
</TABLE>
See Notes to Financial Statements
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15
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET REALIZED
BEGINNING AND DIVIDENDS DISTRIBUTIONS ENDING
NET ASSET NET UNREALIZED FROM NET FROM NET NET ASSET
VALUE PER INVESTMENT GAIN (LOSS) ON INVESTMENT INVESTMENT VALUE PER
SHARE INCOME INVESTMENTS INCOME GAINS SHARE
--------- ---------- -------------- ---------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
LIMITED TERM TAX-FREE FUND
- --------------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1999 to June 30, 1999......... $10.54 $ 0.04 $(0.15) $(0.04) $ - $10.39
June 1, 1998 to May 31, 1999.......... 10.59 0.46 (0.04) (0.47) - 10.54
June 1, 1997 to May 31, 1998.......... 10.39 0.47 0.21 (0.47) (0.01) 10.59
October 1, 1996 (d) to May 31, 1997... 10.00 0.31 0.39 (0.31) - 10.39
TAX-FREE INCOME FUND
- --------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1999 to June 30, 1999......... 10.44 0.04 (0.22) (0.04) - 10.22
June 1, 1998 to May 31, 1999.......... 10.54 0.52 (0.10) (0.51) (0.01) 10.44
June 1, 1997 to May 31, 1998.......... 10.05 0.53 0.49 (0.53) - 10.54
June 1, 1996 to May 31, 1997.......... 9.78 0.54 0.27 (0.54) - 10.05
June 1, 1995 to May 31, 1996.......... 9.82 0.55 (0.04) (0.55) - 9.78
June 1, 1994 to May 31, 1995.......... 9.60 0.55 0.22 (0.55) - 9.82
B SHARES
June 1, 1999 to June 30, 1999......... 10.44 0.04 (0.22) (0.04) - 10.22
June 1, 1998 to May 31, 1999.......... 10.54 0.44 (0.10) (0.43) (0.01) 10.44
June 1, 1997 to May 31, 1998.......... 10.05 0.46 0.48 (0.45) - 10.54
June 1, 1996 to May 31, 1997.......... 9.78 0.46 0.27 (0.46) - 10.05
June 1, 1995 to May 31, 1996.......... 9.82 0.48 (0.04) (0.48) - 9.78
June 1, 1994 to May 31, 1995.......... 9.60 0.48 0.22 (0.48) - 9.82
I SHARES
June 1, 1999 to June 30, 1999......... 10.44 0.04 (0.22) (0.04) - 10.22
June 1, 1998 to May 31, 1999.......... 10.54 0.52 (0.10) (0.51) (0.01) 10.44
June 1, 1997 to May 31, 1998.......... 10.06 0.53 0.48 (0.53) - 10.54
June 1, 1996 to May 31, 1997.......... 9.78 0.54 0.28 (0.54) - 10.06
June 1, 1995 to May 31, 1996.......... 9.82 0.55 (0.04) (0.55) - 9.78
June 1, 1994 to May 31, 1995.......... 9.60 0.55 0.22 (0.55) - 9.82
COLORADO TAX-FREE FUND
- --------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1999 to June 30, 1999......... 10.55 0.04 (0.25) (0.04) - 10.30
June 1, 1998 to May 31, 1999.......... 10.69 0.51 (0.10) (0.51) (0.04) 10.55
June 1, 1997 to May 31, 1998.......... 10.22 0.53 0.47 (0.53) - 10.69
June 1, 1996 to May 31, 1997.......... 9.89 0.54 0.33 (0.54) - 10.22
June 1, 1995 to May 31, 1996.......... 9.90 0.53 (0.01) (0.53) - 9.89
June 1, 1994 to May 31, 1995.......... 9.69 0.48 0.21 (0.48) - 9.90
B SHARES
June 1, 1999 to June 30, 1999......... 10.56 0.04 (0.25) (0.04) - 10.31
June 1, 1998 to May 31, 1999.......... 10.71 0.43 (0.11) (0.43) (0.04) 10.56
June 1, 1997 to May 31, 1998.......... 10.23 0.45 0.48 (0.45) - 10.71
June 1, 1996 to May 31, 1997.......... 9.90 0.47 0.33 (0.47) - 10.23
June 1, 1995 to May 31, 1996.......... 9.91 0.46 (0.01) (0.46) - 9.90
June 1, 1994 to May 31, 1995.......... 9.70 0.41 0.21 (0.41) - 9.91
I SHARES
June 1, 1999 to June 30, 1999......... 10.55 0.04 (0.25) (0.04) - 10.30
June 1, 1998 to May 31, 1999.......... 10.69 0.51 (0.10) (0.51) (0.04) 10.55
June 1, 1997 to May 31, 1998.......... 10.22 0.53 0.47 (0.53) - 10.69
June 1, 1996 to May 31, 1997.......... 9.89 0.54 0.33 (0.54) - 10.22
June 1, 1995 to May 31, 1996.......... 9.90 0.53 (0.01) (0.53) - 9.89
June 1, 1994 to May 31, 1995.......... 9.69 0.48 0.21 (0.48) - 9.90
</TABLE>
[LOGO]
See Notes to Financial Highlights and Notes to Financial Statements
16
<PAGE>
SELECTED DATA FOR A SHARE OUTSTANDING DURING EACH PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS(c) NET ASSETS AT
--------------------------------------------------- PORTFOLIO END OF PERIOD
NET INVESTMENT NET GROSS TOTAL TURNOVER (000'S
INCOME (LOSS) EXPENSES EXPENSES(a) RETURN(b) RATE OMITTED)
--------------- -------------- ---------------- ------------ --------------- -------------
<S> <C> <C> <C> <C> <C> <C>
LIMITED TERM TAX-FREE FUND
- --------------------------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1999 to June
30, 1999............. 4.25% 0.65% 1.12% (1.08%) 24.38% $ 84,419
June 1, 1998 to May 31,
1999................. 4.26% 0.65% 1.04% 3.97% 40.56% 88,223
June 1, 1997 to May 31,
1998................. 4.47% 0.65% 1.03% 6.70% 46.06% 54,602
October 1, 1996 (d) to
May 31, 1997......... 4.45% 0.65% 1.27% 6.99% 16.39% 40,990
TAX-FREE INCOME FUND
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1999 to June
30, 1999............. 5.10% 0.60% 1.02% (1.69%) 18.07% 41,881
June 1, 1998 to May 31,
1999................. 4.81% 0.60% 0.98% 4.04% 105.53% 43,388
June 1, 1997 to May 31,
1998................. 5.09% 0.60% 0.99% 10.33% 142.81% 35,121
June 1, 1996 to May 31,
1997................. 5.41% 0.50% 1.06% 8.43% 152.33% 29,217
June 1, 1995 to May 31,
1996................. 5.54% 0.40% 1.06% 5.29% 126.20% 33,914
June 1, 1994 to May 31,
1995................. 5.87% 0.60% 1.12% 8.42% 130.90% 30,786
B SHARES
June 1, 1999 to June
30, 1999............. 4.34% 1.35% 2.11% (1.76%) 18.07% 17,878
June 1, 1998 to May 31,
1999................. 4.05% 1.35% 2.01% 3.26% 105.53% 17,973
June 1, 1997 to May 31,
1998................. 4.31% 1.35% 2.05% 9.52% 142.81% 11,070
June 1, 1996 to May 31,
1997................. 4.64% 1.26% 2.15% 7.63% 152.33% 7,329
June 1, 1995 to May 31,
1996................. 4.77% 1.14% 2.21% 4.50% 126.20% 5,897
June 1, 1994 to May 31,
1995................. 5.05% 1.35% 2.21% 7.61% 130.90% 3,729
I SHARES
June 1, 1999 to June
30, 1999............. 5.09% 0.60% 0.95% (1.69%) 18.07% 304,170
June 1, 1998 to May 31,
1999................. 4.83% 0.60% 0.91% 4.04% 105.53% 311,757
June 1, 1997 to May 31,
1998................. 5.09% 0.60% 0.92% 10.22% 142.81% 286,734
June 1, 1996 to May 31,
1997................. 5.40% 0.50% 1.03% 8.54% 152.33% 259,861
June 1, 1995 to May 31,
1996................. 5.57% 0.32% 1.06% 5.29% 126.20% 276,159
June 1, 1994 to May 31,
1995................. 5.84% 0.60% 1.05% 8.42% 130.90% 94,454
COLORADO TAX-FREE FUND
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1999 to June
30, 1999............. 4.94% 0.60% 1.08% (1.97%) 10.98% 39,066
June 1, 1998 to May 31,
1999................. 4.71% 0.60% 1.02% 3.79% 76.62% 39,958
June 1, 1997 to May 31,
1998................. 5.00% 0.60% 1.04% 9.96% 69.87% 34,254
June 1, 1996 to May 31,
1997................. 5.36% 0.45% 1.14% 9.00% 129.26% 27,806
June 1, 1995 to May 31,
1996................. 5.30% 0.30% 1.13% 5.35% 171.41% 26,991
June 1, 1994 to May 31,
1995................. 5.10% 0.30% 1.15% 7.47% 47.88% 25,997
B SHARES
June 1, 1999 to June
30, 1999............. 4.17% 1.35% 2.08% (2.03%) 10.98% 10,959
June 1, 1998 to May 31,
1999................. 3.96% 1.35% 2.03% 2.92% 76.62% 10,909
June 1, 1997 to May 31,
1998................. 4.24% 1.35% 2.04% 9.25% 69.87% 9,156
June 1, 1996 to May 31,
1997................. 4.60% 1.20% 2.15% 8.19% 129.26% 7,218
June 1, 1995 to May 31,
1996................. 4.64% 1.05% 2.16% 4.56% 171.41% 6,400
June 1, 1994 to May 31,
1995................. 4.32% 1.05% 2.16% 6.67% 47.88% 5,198
I SHARES
June 1, 1999 to June
30, 1999............. 4.93% 0.60% 1.08% (1.97%) 10.98% 49,101
June 1, 1998 to May 31,
1999................. 4.71% 0.60% 0.99% 3.79% 76.62% 48,926
June 1, 1997 to May 31,
1998................. 5.01% 0.60% 1.01% 9.97% 69.87% 32,342
June 1, 1996 to May 31,
1997................. 5.35% 0.45% 1.13% 9.00% 129.26% 25,917
June 1, 1995 to May 31,
1996................. 5.30% 0.30% 1.13% 5.35% 171.41% 24,074
June 1, 1994 to May 31,
1995................. 5.08% 0.30% 1.16% 7.47% 47.88% 24,539
</TABLE>
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17
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET REALIZED
BEGINNING AND DIVIDENDS DISTRIBUTIONS ENDING
NET ASSET NET UNREALIZED FROM NET FROM NET NET ASSET
VALUE PER INVESTMENT GAIN (LOSS) ON INVESTMENT INVESTMENT VALUE PER
SHARE INCOME INVESTMENTS INCOME GAINS SHARE
--------- ---------- -------------- ---------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
MINNESOTA INTERMEDIATE TAX-FREE FUND
- --------------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1999 to June 30, 1999......... 9.91 0.04 (0.16) (0.04) - 9.75
June 1, 1998 to May 31, 1999.......... 10.03 0.49 (0.09) (0.49) (0.03) 9.91
October 1, 1997 (d) to May 31, 1998... 10.00 0.33 0.03 (0.33) - 10.03
MINNESOTA TAX-FREE FUND
- --------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1999 to June 30, 1999......... 10.96 0.04 (0.22) (0.04) - 10.74
June 1, 1998 to May 31, 1999.......... 11.05 0.51 (0.08) (0.51) (0.01) 10.96
June 1, 1997 to May 31, 1998.......... 10.57 0.53 0.48 (0.53) - 11.05
June 1, 1996 to May 31, 1997.......... 10.30 0.54 0.27 (0.54) - 10.57
June 1, 1995 to May 31, 1996.......... 10.45 0.56 (0.15) (0.56) - 10.30
June 1, 1994 to May 31, 1995.......... 10.15 0.53 0.30 (0.53) - 10.45
B SHARES
June 1, 1999 to June 30, 1999......... 10.96 0.04 (0.22) (0.04) - 10.74
June 1, 1998 to May 31, 1999.......... 11.05 0.43 (0.08) (0.43) (0.01) 10.96
June 1, 1997 to May 31, 1998.......... 10.57 0.45 0.48 (0.45) - 11.05
June 1, 1996 to May 31, 1997.......... 10.30 0.46 0.27 (0.46) - 10.57
June 1, 1995 to May 31, 1996.......... 10.44 0.48 (0.14) (0.48) - 10.30
June 1, 1994 to May 31, 1995.......... 10.15 0.45 0.29 (0.45) - 10.44
I SHARES
June 1, 1999 to June 30, 1999......... 10.96 0.04 (0.22) (0.04) - 10.74
June 1, 1998 to May 31, 1999.......... 11.05 0.52 (0.09) (0.51) (0.01) 10.96
June 1, 1997 to May 31, 1998.......... 10.57 0.53 0.48 (0.53) - 11.05
June 1, 1996 to May 31, 1997.......... 10.30 0.54 0.27 (0.54) - 10.57
June 1, 1995 to May 31, 1996.......... 10.45 0.56 (0.15) (0.56) - 10.30
June 1, 1994 to May 31, 1995.......... 10.16 0.53 0.29 (0.53) - 10.45
</TABLE>
[LOGO]
See Notes to Financial Highlights and Notes to Financial Statements
18
<PAGE>
SELECTED DATA FOR A SHARE OUTSTANDING DURING EACH PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS(c) NET ASSETS AT
--------------------------------------------------- PORTFOLIO END OF PERIOD
NET INVESTMENT NET GROSS TOTAL TURNOVER (000'S
INCOME (LOSS) EXPENSES EXPENSES(a) RETURN(b) RATE OMITTED)
--------------- -------------- ---------------- ------------ --------------- -------------
<S> <C> <C> <C> <C> <C> <C>
MINNESOTA INTERMEDIATE TAX-FREE FUND
- --------------------------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1999 to June
30, 1999............. 4.94% 0.60% 0.72% (1.21%) 0.86% 219,258
June 1, 1998 to May 31,
1999................. 4.84% 0.60% 0.68% 3.95% 19.54% 222,953
October 1, 1997 (d) to
May 31, 1998......... 5.02% 0.60% 0.72% 3.61% 15.13% 209,685
MINNESOTA TAX-FREE FUND
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1999 to June
30, 1999............. 4.71% 0.60% 1.11% (1.63%) 2.32% 37,139
June 1, 1998 to May 31,
1999................. 4.61% 0.60% 1.03% 3.96% 24.84% 38,255
June 1, 1997 to May 31,
1998................. 4.83% 0.60% 1.07% 9.71% 68.27% 33,597
June 1, 1996 to May 31,
1997................. 5.11% 0.60% 1.21% 7.98% 96.68% 25,739
June 1, 1995 to May 31,
1996................. 5.26% 0.48% 1.26% 3.97% 77.10% 26,610
June 1, 1994 to May 31,
1995................. 5.25% 0.49% 1.61% 8.55% 139.33% 15,559
B SHARES
June 1, 1999 to June
30, 1999............. 3.93% 1.35% 2.11% (1.69%) 2.32% 21,366
June 1, 1998 to May 31,
1999................. 3.85% 1.35% 2.04% 3.18% 24.84% 21,493
June 1, 1997 to May 31,
1998................. 4.07% 1.35% 2.08% 8.89% 68.27% 16,549
June 1, 1996 to May 31,
1997................. 4.35% 1.34% 2.21% 7.18% 96.68% 11,128
June 1, 1995 to May 31,
1996................. 4.51% 1.23% 2.29% 3.28% 77.10% 8,825
June 1, 1994 to May 31,
1995................. 4.52% 1.21% 2.62% 7.63% 139.33% 5,090
I SHARES
June 1, 1999 to June
30, 1999............. 4.69% 0.60% 1.11% (1.63%) 2.32% 27,197
June 1, 1998 to May 31,
1999................. 4.62% 0.60% 1.00% 3.96% 24.84% 27,261
June 1, 1997 to May 31,
1998................. 4.84% 0.60% 1.04% 9.71% 68.27% 20,736
June 1, 1996 to May 31,
1997................. 5.12% 0.60% 1.23% 7.98% 96.68% 11,135
June 1, 1995 to May 31,
1996................. 5.24% 0.51% 1.30% 3.97% 77.10% 3,988
June 1, 1994 to May 31,
1995................. 5.29% 0.48% 1.58% 8.44% 139.33% 1,799
</TABLE>
[LOGO]
19
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(a) During each period, various fees and expenses were waived and reimbursed.
The ratio of Gross Expenses to Average Net Assets reflects the expense
ratio in the absence of any waivers and reimbursements (Note 3).
(b) Total return calculations do not include any sales charges, and would have
been lower had certain expenses not been waived or reimbursed during the
period shown (Note 3).
(c) Ratios for periods of less than one year are annualized.
(d) Commencement of operations.
[LOGO]
20
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 1. ORGANIZATION
Norwest Advantage Funds (the "Trust") is organized as a Delaware business trust
and is registered as an open-end management investment company under the
Investment Company Act of 1940 (the "Act"). The Trust currently has thirty-nine
separate investment portfolios. These financial statements relate to five of
those portfolios (individually, a "Fund" and, collectively, the "Funds"), each
of which is a diversified portfolio, with the exception of Colorado Tax-Free
Fund, Minnesota Intermediate Tax-Free Fund, and Minnesota Tax-Free Fund. The
classes of each Fund and their respective dates of commencement of operations
are as follows:
<TABLE>
<CAPTION>
A SHARES B SHARES I SHARES
----------------- ----------------- -----------------
<S> <C> <C> <C>
Limited Term Tax-Free Fund.............. N/A N/A October 1, 1996
Tax-Free Income Fund.................... August 1, 1989 August 6, 1993 August 2, 1993
Colorado Tax-Free Fund.................. June 1, 1993 August 2, 1993 August 23, 1993
Minnesota Intermediate Tax-Free Fund.... N/A N/A October 1, 1997
Minnesota Tax-Free Fund................. January 12, 1988 August 6, 1993 August 2, 1993
</TABLE>
Each share of each class represents an undivided, proportionate interest in a
Fund. A Shares are sold with a front-end sales charge to the general public. B
Shares are sold to the general public with a contingent deferred sales charge
("CDSC") imposed on most redemptions made within six years of purchase. After
six years, B Shares automatically convert to A Shares. B Shares incur
distribution expenses. I Shares, offered primarily to fiduciary, agency and
custodial clients of bank trust departments, trust companies and their
affiliates, are sold without a sales charge and do not incur distribution
expenses.
Effective June 30, 1999, the Funds changed their fiscal year end from May 31 to
June 30.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
These financial statements are prepared in accordance with generally accepted
accounting principles, which require management to make estimates and
assumptions that affect the reported amounts of assets and liabilities,
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of increase and decrease in net assets from
operations during the fiscal period. Actual results could differ from those
estimates. The following summarizes the significant accounting policies of the
Funds:
SECURITY VALUATION--Each Fund determines its net asset value at 4:00 PM, Eastern
Time, on each Fund business day. Short-term securities that mature in sixty days
or less are valued at amortized cost. Fixed income and other securities, for
which market quotations are readily available, are valued using the mean of the
last bid and ask price provided by independent pricing services. If no mean
price is available, the last bid price is used. In the absence of readily
available market quotations, securities are valued at fair value determined in
accordance with procedures adopted by the Board of Trustees.
SECURITY TRANSACTIONS AND INVESTMENT INCOME--Investment transactions are
accounted for on the trade date. Interest income is recorded on the accrual
basis and includes amortization of premiums and accretion of discounts.
Identified cost of investments sold is used to determine realized gains and
losses for both financial statement and federal income tax purposes.
DISTRIBUTIONS TO SHAREHOLDERS--Distributions to shareholders of net investment
income, if any, are declared daily and paid monthly by the Funds. Net capital
gains if any, are distributed to shareholders at least annually. Distributions
are based on amounts calculated in accordance with applicable federal income tax
regulations, which may differ from generally accepted accounting principles.
These differences are due primarily to differing treatments of income and gain
on various investment securities held by each Fund, timing differences and
differing characterizations of distributions made by the Fund.
FEDERAL TAXES--Each Fund intends to qualify each year as a regulated investment
company and distribute all its taxable income. In addition, by distributing in
each calendar year substantially all its net investment income, capital gain and
certain other amounts, if any, each Fund will not be subject to a federal excise
tax. Therefore, no federal income or excise tax provision is required.
EXPENSE ALLOCATION--The Trust accounts separately for the assets and liabilities
and operations of each Fund. Expenses that are directly attributable to more
than one Fund are allocated among the respective Funds. Expenses that are
directly attributable to a class of shares are allocated to that class.
ORGANIZATION COSTS--The costs incurred by Minnesota Intermediate Tax-Free Fund
in connection with its organization and registration of shares have been
capitalized and are being amortized using the straight-line method over a
five-year period beginning on the commencement of the Fund's operations.
REPURCHASE AGREEMENTS--Each Fund may invest in repurchase agreements. The Funds,
through their custodian, receive delivery of the underlying collateral, whose
market value must always exceed the repurchase price. In the event of default, a
Fund may have difficulties with the disposition of the collateral.
NOTE 3. ADVISORY, SERVICING FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Refer to the Table at the end of this Note for a detailed listing of service
fees and related fee waivers and expense reimbursements.
INVESTMENT ADVISERS--The investment adviser of each Fund is Norwest Investment
Management, Inc. ("Adviser"), a wholly owned subsidiary of Norwest Bank
Minnesota, N.A. ("Norwest"). Norwest is a subsidiary of Wells Fargo & Company.
The Adviser receives an advisory fee from each Fund based on an annualized
percentage of the Fund's average daily net assets.
[LOGO]
21
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
NOTE 3. ADVISORY, SERVICING FEES AND OTHER TRANSACTIONS WITH
AFFILIATES (CONTINUED)
MANAGEMENT, ADMINISTRATION AND DISTRIBUTION SERVICES--Forum Financial Services,
Inc. ("FFSI") supervises the overall management of the Trust other than
investment advisory services. Forum Administrative Services, LLC ("FAdS"), an
affiliate of FFSI, is the administrator of the Trust. For their services, FFSI
and FAdS each receive a fee at an annual rate of 0.05% of each Fund's average
daily net assets.
TRANSFER AGENT, SHAREHOLDER SERVICING AGENT, DIVIDEND DISBURSING AGENT AND
CUSTODIAN--Norwest serves as the Trust's transfer agent and dividend disbursing
agent. For these services, Norwest receives a fee at an annual rate of 0.25% of
the average daily net assets attributable to each class of each Fund's shares.
Norwest also serves as the Trust's custodian and receives a fee at an annual
rate of 0.02% for the first $100 million of average net assets of each Fund,
declining to 0.01% of the average net assets of each Fund in excess of $200
million.
DISTRIBUTION PLAN--The Trust has adopted a Distribution Plan (the "Plan")
pursuant to Rule 12b-1 under the Act with respect to each Fund currently
offering B Shares. The Plan authorizes the payment to FFSI of a distribution
service fee at an annual rate of 0.75% of the average daily net assets
attributable to B Shares. The Plan also authorizes payment of a maintenance fee
at an annual rate of 0.25% of the average daily net assets attributable to B
Shares. No Fund incurred any maintenance fees during the thirteen month period
ended June 30, 1999. The distribution payments are used primarily to reimburse
FFSI for commissions to brokers and interest thereon with respect to B Shares.
The Plan may, with respect to each share class, be terminated by vote of a
majority of the Share class' shareholders or by vote of a majority of the Board
of Trustees who do not have any direct or indirect financial interest in the
Plan. In the event that the Plan is terminated or not continued, at the
discretion of the Board of Trustees, the Fund will continue to pay distribution
service fees to FFSI (but only with respect to sales of B Shares that occurred
prior to the termination or discontinuance of the Plan) until the earlier of (a)
four years after the date of termination or discontinuance or (b) such time as
there exists no unreimbursed distribution charges attributable to that Fund
under the Plan, as calculated pursuant to the Plan. The respective unreimbursed
distribution charges at June 30, 1999, were as follows:
<TABLE>
<CAPTION>
UNREIMBURSED
DISTRIBUTION
CHARGES
-----------
<S> <C>
Tax-Free Income Fund........................................ $ 350,601
Colorado Tax-Free Fund...................................... 130,356
Minnesota Tax-Free Fund..................................... 437,086
</TABLE>
OTHER SERVICE PROVIDERS--Forum Accounting Services, LLC ("FAcS"), an affiliate
of FFSI, provides portfolio accounting services to each Fund.
FEE RATES AND WAIVERS--The following tables provide fee rates for certain
services. The tables also contain fee waivers and reimbursements for each
service provider. The Adviser, Norwest, FFSI and FAdS have voluntarily waived
and reimbursed a portion of their fees so that total expenses would not exceed
specific expense limitations established for each Fund. The Adviser, Norwest,
FFSI and FAdS may, at their discretion, revise or discontinue the voluntary fee
waivers and expense reimbursements at any time.
<TABLE>
<CAPTION>
FEES WAIVED BY
FEES/RATES ----------------------------------
---------------------------- CUSTODIAN EXPENSES TOTAL FEES
CUSTODIAN AND REIMBURSED WAIVED AND
FOR THE ONE MONTH PERIOD ENDED JUNE AND TRANSFER TRANSFER BY EXPENSES
30, 1999 ADVISORY AGENT (b) ADVISER AGENT FFSI/FAdS FFSI/FAdS REIMBURSED
------------- ------------ --------- --------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Limited Term Tax-Free Fund......... 0.50% 0.27% $ 1,411 $ 17,637 $ 7,054 $ 7,267 $ 33,369
Tax-Free Income Fund............... 0.50% 0.26% 29 75,220 33,729 5,182 114,160
Colorado Tax-Free Fund............. 0.50%(a) 0.27% 6,063 20,211 14,793 - 41,067
Minnesota Intermediate Tax-Free
Fund.............................. 0.25% 0.27% - - 18,062 3,634 21,696
Minnesota Tax-Free Fund............ 0.50%(a) 0.27% 7,067 17,666 15,747 - 40,480
</TABLE>
<TABLE>
<CAPTION>
FEES WAIVED BY
FEES/RATES ----------------------------------
----------------------------- CUSTODIAN EXPENSES TOTAL FEES
CUSTODIAN AND AND REIMBURSED WAIVED AND
TRANSFER TRANSFER BY EXPENSES
FOR THE YEAR ENDED MAY 31, 1999 ADVISORY AGENT (b) ADVISER AGENT FFSI/FAdS FFSI/FAdS REIMBURSED
------------- ------------- --------- --------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Limited Term Tax-Free Fund......... 0.50% 0.27% $ 29,395 $172,333 $ 64,644 $ - $ 266,372
Tax-Free Income Fund............... 0.50% 0.26% 19,399 903,466 269,369 17,466 1,209,700
Colorado Tax-Free Fund............. 0.50%(a) 0.27% 70,194 221,175 93,847 541 385,757
Minnesota Intermediate Tax-Free
Fund.............................. 0.25% 0.27% - - 170,867 - 170,867
Minnesota Tax-Free Fund............ 0.50%(a) 0.27% 81,990 197,177 105,767 - 384,934
</TABLE>
(a) For the first $300 million of average net assets of the Fund, declining to
0.42% for average net assets in excess of $700 million.
(b) In addition to the transfer agent fee of 0.25%, the custody fee is 0.02% for
the first $100 million of average net assets of the Fund, declining to 0.01%
for average net assets in excess of $200 million.
[LOGO]
22
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
- --------------------------------------------------------------------------------
NOTE 4. SECURITIES TRANSACTIONS
The following table presents the federal tax cost basis of investments, related
gross unrealized appreciation and depreciation for federal income tax purposes,
and the capital loss carryovers (which expire in various years through 2007)
available to offset future capital gains, as of June 30, 1999:
<TABLE>
<CAPTION>
UNREALIZED CAPITAL
--------------------------------------------- TAX LOSS
APPRECIATION (DEPRECIATION) NET COST BASIS CARRYOVERS
------------- ------------- ------------- -------------- ------------
<S> <C> <C> <C> <C> <C>
Limited Term-Tax Fund......... $ 428,341 $ (1,029,728) $ (601,387) $ 87,477,452 $ 239,953
Tax-Free Income Fund.......... 7,384,711 (4,394,228) 2,990,483 363,252,313 952,538
Colorado Tax-Free Fund........ 1,426,835 (1,338,368) 88,467 99,130,107 220,355
Minnesota Intermediate
Tax-Free Fund................ 6,552,613 (1,242,715) 5,309,898 211,128,463 129,158
Minnesota Tax-Free Fund....... 1,645,480 (1,002,004) 643,476 85,556,469 186,463
</TABLE>
The following table presents the cost of purchases and proceeds from sales
(including maturities) of securities (excluding short-term investments) during
the month ended June 30, 1999, and the year ended May 31, 1999:
<TABLE>
<CAPTION>
ONE MONTH PERIOD FOR THE YEAR
ENDED JUNE 30, 1999 ENDED MAY 31, 1999
--------------------------- ---------------------------
COST OF PROCEEDS COST OF PROCEEDS
PURCHASES FROM SALES PURCHASES FROM SALES
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Limited Term-Tax Fund......... $ 21,508,854 $ 22,016,519 $ 64,433,508 $ 28,231,259
Tax-Free Income Fund.......... 81,572,654 65,671,207 404,018,965 368,246,021
Colorado Tax-Free Fund........ 14,531,934 10,833,064 88,531,007 64,154,683
Minnesota Intermediate
Tax-Free Fund................ 2,711,703 1,873,833 62,726,960 49,006,093
Minnesota Tax-Free Fund....... 7,714,349 2,007,802 48,962,699 37,531,670
</TABLE>
NOTE 5. CONCENTRATION OF CREDIT RISK
Colorado Tax-Free Fund, Minnesota Intermediate Tax-Free Fund and Minnesota
Tax-Free Fund invest substantially all their assets in debt obligations of
issuers located in the states of Colorado and Minnesota, respectively. The
issuers' abilities to meet their obligations may be affected by Colorado and
Minnesota economic or political developments.
NOTE 6. COMMON TRUST FUND CONVERSION
On September 30, 1997, Minnesota Intermediate Tax-Free Fund acquired all the net
assets of Norwest Minnesota Tax Exempt Fund. The net assets associated with the
acquired fund immediately prior to acquisition were $204,022,181. The shares
issued as a result of the acquisition were 21,500,494. The net assets of
Minnesota Intermediate Tax-Free Fund immediately after the acquisition were
$204,022,181.
NOTE 7. FUND REORGANIZATIONS
On March 25, 1999, the Board of Trustees of Norwest Advantage Funds approved the
reorganization of each Norwest Advantage Fund into a new portfolio of Wells
Fargo Funds Trust. The reorganizations are part of a plan to consolidate the
Stagecoach and Norwest Advantage fund families following last November's merger
of Wells Fargo & Company and Norwest Corporation. Norwest Advantage Funds has
presented each proposed fund reorganization to the fund's shareholders for their
approval at a special shareholders' meeting that was held in August 1999.
If shareholders approve the reorganizations, each Norwest Advantage Fund will
reorganize into a corresponding Wells Fargo Funds Trust portfolio that has
substantially similar investment objectives and investment policies. In general,
the Wells Fargo Funds Trust portfolios will not combine with other funds of the
Stagecoach or Norwest Advantage fund families.
SUPPLEMENTARY INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
FEDERAL TAX STATUS OF DIVIDENDS DECLARED
For federal income tax purposes, dividends from short-term capital gains are
classified as ordinary income. All net investment income dividends paid were
exempt income dividends, except for Tax-Free Income Fund which had 98.80% exempt
income dividends and 1.20% ordinary income dividends. The Funds did not have
qualifying dividends eligible for the corporate dividends received deduction.
[LOGO]
23
<PAGE>
SCHEDULES OF INVESTMENTS JUNE 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
LIMITED TERM TAX-FREE FUND
- -----------------------------------------------------------------
MUNICIPAL BONDS (99.4%)
ALABAMA (4.4%)
1,000,000 Birmingham Jefferson, AL, Civic Center
Authority Special Tax Bonds, Series B,
7.10%, 1/1/01 $ 1,002,690
2,500,000 Huntsville, AL, Health Care Authority
RV, Series B, remarketed 11/9/94, MBIA
insured, 6.63%, 6/1/23, P/R 6/1/04 @
102 2,777,425
---------------
3,780,115
---------------
ALASKA (3.2%)
2,000,000 North Slope Boro, AK, GO Bonds, Capital
Appreciation, Series A, MBIA insured,
0.00% (4.50% effective yield), 6/30/07 1,348,300
1,750,000 North Slope Boro, AK, GO Bonds, Capital
Appreciation, Series B, MBIA insured,
0.00% (4.80% effective yield), 6/30/04 1,387,943
---------------
2,736,243
---------------
ARIZONA (2.3%)
980,000 Maricopa County, AZ, IDA Health
Facilities RV, Samaritan Health
Services, Series B, MBIA insured,
7.15%, 12/1/05 1,082,106
885,000 Maricopa County, AZ, IDA, MFHR Bonds,
Advantage Point Projects, Series A,
5.75%, 7/1/01 903,921
---------------
1,986,027
---------------
CALIFORNIA (2.4%)
1,315,000 Hayward, CA, Hospital RV, St. Rose
Hospital, 10.00%, 10/1/04 1,507,634
455,000 San Francisco State University
Foundation, Inc., CA, Education
Facilities RV, Auxiliary Organization,
Student Housing, ACA insured, 3.95%,
7/1/02 450,191
100,000 San Francisco State University
Foundation, Inc., CA, Educational
Facilities RV, Auxiliary Organization,
Student Housing, ACA insured, 4.10%,
7/1/03 98,820
---------------
2,056,645
---------------
COLORADO (7.8%)
400,000 Aurora Centretech Metropolitan District,
CO, GO Bonds, Series C, Banque
Nationale de Paris, LOC, 4.88%,
12/1/28 389,016
385,000 Boulder County, CO, Hospital RV,
Longmont United Hospital Project,
5.00%, 12/1/05 387,187
200,000 Boulder County, CO, Hospital RV,
Longmont United Hospital Project,
4.80%, 12/1/03 200,758
500,000 Central Platte Valley, CO, Metropolitan
District, GO Bonds, ACA insured,
4.45%, 12/01/06 486,885
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
LIMITED TERM TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
COLORADO (continued)
<TABLE>
<C> <S> <C>
585,000 Colorado Health Facilities Authority RV,
National Jewish Medical & Research
Center, 4.80%, 1/1/05 $ 582,485
500,000 Colorado Health Facilities Authority RV,
Steamboat Springs Health, 5.30%,
9/15/09 487,655
25,000 Colorado HFA, SFM Bonds, Series D-I,
remarketed 7/15/94, 6.25%, 12/1/01 25,572
235,000 Colorado HFA, SFM RV, Series C, 5.00%,
5/1/05 236,995
35,000 Colorado HFA, SFM RV, Series D-II,
remarketed 11/15/97, 6.38%, 12/1/01 35,811
300,000 Colorado Springs, CO, IDR Bonds, Dayton
Hudson Corp. Project, 6.88%, 4/1/01 310,674
220,000 Denver West Metropolitan District, CO,
GO Bonds, Series B, 4.90%, 12/1/03 221,956
205,000 Denver West Metropolitan District, CO,
GO Bonds, Series B, 5.00%, 12/1/04 207,025
290,000 Denver West Metropolitan District, CO,
GO Bonds, Series B, 5.20%, 12/1/06 293,402
355,000 Denver, CO, City & County RV, Helen G.
Bonfils Foundation Project, Series B,
9.50%, 12/1/01 396,620
1,250,000 Larimer County, CO, SD #R1, Poudre COP,
Educational Facilities RV, Colorado
Association School Board Lease,
10.00%, 12/1/01 1,414,975
1,070,000 Teller County, CO, COP, 5.50%, 12/1/09 1,099,318
---------------
6,776,334
---------------
FLORIDA (1.7%)
235,000 Bradford County, FL, Health Facilities
Authority, Health Facilities RV, Santa
Fe Healthcare Facilites Project,
6.00%, 11/15/09 249,302
440,000 Broward County, FL, Resource Recovery
RV, SES Broward Co. LP South Project,
7.95%, 12/1/08 459,501
985,000 Plantation, FL, Water & Sewer RV,
Capital Appreciation, MBIA insured,
0.00% (5.68% effective yield), 3/1/03 801,386
---------------
1,510,189
---------------
IDAHO (0.6%)
500,000 Pocatello, ID, IDA RV, Allocation Tax
Increment Bonds, Series B, 7.25%,
12/1/08 511,240
---------------
ILLINOIS (5.3%)
865,000 Des Plaines, IL, Hospital Facilities RV,
Holy Family Hospital, MBIA insured,
10.63%, 1/1/03, P/R 7/1/02 @ 100 959,095
425,000 Illinois Educational Facilities RV,
Chicago College of Osteopathic, ETM,
8.75%, 7/1/05 485,189
</TABLE>
[LOGO]
See Notes to Schedules of Investments
24
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) JUNE 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
LIMITED TERM TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
ILLINOIS (continued)
<TABLE>
<C> <S> <C>
355,000 Illinois Health Facilities Authority RV,
Alexian Brothers Medical Center
Project, 7.00%, 1/1/03, P/R 1/1/01 @
102 $ 374,688
795,000 Illinois Health Facilities Authority RV,
Mercy Hospital Project, ETM, 7.10%,
6/1/09 879,198
1,000,000 Kane, Cook & Du Page Counties, IL, GO
Bonds, SD #46, FSA insured, 7.90%,
1/1/04 1,129,200
500,000 Metropolitan Pier & Exposition
Authority, IL, Dedicated State Tax RV,
McCormick Place Expansion Project,
Series A, AMBAC insured, 4.90%,
12/15/03 509,100
80,000 Waukegan, IL, Board Library Trustees,
Economic Development RV, Library
Building Notes, 9.00%, 1/1/00 81,971
85,000 Waukegan, IL, Board Library Trustees,
Economic Development RV, Library
Building Notes, 8.00%, 1/1/01 89,226
95,000 Waukegan, IL, Board Library Trustees,
Economic Development RV, Library
Building Notes, 7.50%, 1/1/02 101,189
---------------
4,608,856
---------------
KANSAS (2.4%)
1,860,000 Kansas City, KS, Water & Electric RV,
5.50%, 9/1/07 1,913,512
185,000 Lawrence, KS, Hospital RV, Lawrence
Memorial Hospital, 5.00%, 7/1/04 187,325
---------------
2,100,837
---------------
LOUISIANA (0.4%)
325,000 Louisiana Public Facilities Authority,
MFHR Bonds, Edgewood Apartments, FNMA
insured, 5.70%, 6/1/05 336,661
---------------
MAINE (0.4%)
345,000 State Street Housing Preservation Corp.,
ME, MFHR Bonds, Project Acquisition,
100 State Street, Series A, HUD
Section 8, LOC, 7.20%, 1/1/02 358,376
---------------
MARYLAND (0.5%)
400,000 Maryland State Community Development
Administration Department, Housing &
Community Development RV, Single
Family Project, First Series, FHA
insured, 4.90%, 4/1/06 402,484
---------------
MICHIGAN (9.5%)
535,000 Battle Creek, MI, Economic Development
RV, Kellogg Co. Project, remarketed
8/1/97, 5.13%, 2/1/09 540,334
1,190,000 Detroit, MI, Sewer Disposal RV, ETM,
7.10%, 12/15/09 1,329,410
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
LIMITED TERM TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
MICHIGAN (continued)
<TABLE>
<C> <S> <C>
255,000 Grand Rapids, MI, Charter TWP, Porter
Hills Obligation Group, 4.20%, 7 /1/03 $ 248,816
200,000 Grand Rapids, MI, IDR Bonds, Porter
Hills Obligation Group, 4.35%, 7/1/05 192,206
300,000 Lakeview, MI, Community Schools, GO
Bonds, FGIC insured, 6.50%, 5/1/05 327,981
305,000 Lakeview, MI, Community Schools, GO
Bonds, FGIC insured, 6.50%, 5/1/06 335,915
395,000 Merrill, MI, Community School District,
GO Bonds, FGIC insured, 6.50%, 5/1/05 431,206
970,000 Michigan State Hospital Finance
Authority RV, Charity Obligations,
Series D, 4.80%, 11/1/17, mandatory
put 11/1/04 @ 100 968,584
2,500,000 Michigan State, Hospital Finance
Authority RV, Harper-Grace Hospitals,
ETM, 7.13%, 5/1/09 2,780,025
2,305,000 Romulus, MI, GO Bonds, Community
Schools, Capital Appreciation, Series
II, FGIC insured, 0.00% (4.95%
effective yield), 5/1/22, P/R 5/1/07 @
36.695 577,495
450,000 Schoolcraft, MI, Community School
District, GO Bonds, FGIC insured,
6.50%, 5/1/04 487,778
---------------
8,219,750
---------------
MINNESOTA (2.0%)
750,000 Minneapolis, MN, Temporary Parking Ramp,
Transportation RV, Series A, 4.75%,
6/1/00 750,030
335,000 Minnesota State HEFA RV, Northwestern
College of Chiro, Series 4Z, 4.25%,
10/1/03 331,516
350,000 Minnesota State HEFA RV, Northwestern
College of Chiro, Series 4Z, 4.38%,
10/1/04 345,618
160,000 St. Cloud, MN, COP, Municipal Athletic
Complex, 5.00%, 12/1/03 162,016
170,000 St. Cloud, MN, COP, Municipal Athletic
Complex, 5.10%, 12/1/04 172,450
---------------
1,761,630
---------------
MISSOURI (2.0%)
1,115,000 Madison County, MO, Hospital RV, Series
A, 7.70%, 10/1/18, P/R
10/1/06 @ 100 1,321,097
420,000 St. Louis, MO, Regional Convention &
Sports Complex Authority RV, Series C,
7.75%, 8/15/01 432,184
---------------
1,753,281
---------------
NEBRASKA (1.6%)
1,000,000 American Public Energy Agency, NE, Gas
Supply RV, Nebraska Public Gas Agency
Project, Series C, AMBAC insured,
4.00%, 9/1/07 933,230
</TABLE>
[LOGO]
See Notes to Schedules of Investments
25
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) JUNE 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
LIMITED TERM TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
NEBRASKA (continued)
<TABLE>
<C> <S> <C>
415,000 Nebraska Investment Finance Authority,
Hospital RV, Great Plains Regional
Medical Center Project, 4.80%,
11/15/04 $ 415,465
---------------
1,348,695
---------------
NEVADA (1.2%)
1,000,000 Clark County, NV, Flood Control, GO
Bonds, AMBAC insured, 6.10%, 11/1/02 1,049,060
---------------
NEW YORK (9.6%)
670,000 County of Westchester, NY, IDR RV, AGR
Realty Co. Project, 5.75%, 1/1/02 683,574
1,100,000 Metropolitan Transportation Authority,
NY, Commuter Facilities RV, Series A,
FGIC insured, 6.10%, 7/1/26, P/R
7/1/06 @ 102 1,211,397
485,000 New York State Dorm Authority RV,
Capital Appreciation, Series A, FSA
insured, 0.00% (5.29% effective
yield), 7/1/05 352,396
1,615,000 New York State Housing Finance Agency,
EFA RV, State University Construction,
ETM USG, 6.50%, 11/1/06 1,724,432
1,500,000 New York, NY, GO Bonds, Series E, MBIA-
IBC insured, 6.00%, 8/1/03 1,585,634
235,000 New York, NY, GO Bonds, Series F, 5.00%,
8/1/03 239,113
2,000,000 New York, NY, Series F, 5.00%, 8/1/06 2,015,940
500,000 Syracuse, NY, IDR RV, 5.13%, 10/15/02 508,130
---------------
8,320,616
---------------
NORTH CAROLINA (0.8%)
700,000 North Carolina Municipal Power Agency
#1, Catawba Electric RV, 5.90%, 1/1/03 717,486
---------------
OHIO (2.9%)
230,000 Akron, OH, COP, Sports Facilities RV,
Municipal Baseball Stadium Project,
0.00% (6.50% effective yield), 12/1/07 217,707
1,285,000 Akron, OH, COP, Sports Facilities RV,
Municipal Baseball Stadium Project,
0.00% (5.32% effective yield), 12/1/01 1,151,925
460,000 Ohio State Building Authority RV, Toledo
Government Office Building, 10.13%,
10/1/06, P/R 4/1/03 @ 100 532,197
520,000 Ohio State, Building Authority RV,
Bigs-State Correctional Facility,
Series C, 9.75%, 10/1/05 655,148
---------------
2,556,977
---------------
PENNSYLVANIA (9.0%)
375,000 Delaware County, PA, University RV,
Villanova University, 9.63%, 8/1/02 407,126
1,000,000 New Castle, PA, Area Hospital Authority,
Hospital RV, St. Francis Hospital,
Series A, 6.50%, 11/15/09 1,032,200
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
LIMITED TERM TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
PENNSYLVANIA (continued)
<TABLE>
<C> <S> <C>
1,250,000 Pennsylvania, EDA RV, Northwestern Human
Services, Series A, ACA insured,
4.88%, 6/1/08 $ 1,204,825
265,000 Philadelphia, PA, Gas Works RV,
Thirteenth Series, 7.50%, 6/15/01 279,975
385,000 Philadelphia, PA, IDR RV, Gallery II
Garage Project, 6.13%, 2/15/03 391,202
3,350,000 Washington County, PA, IDA, PCR Bonds,
West Pennsylvania Power Co., Series F,
MBIA insured, 4.95%, 3/1/03 3,401,959
1,000,000 Windber, PA, Area Authority Hospital RV,
Windber Hospital Project, FHA insured,
6.50%, 2/1/30, P/R 8/1/05 @ 102 1,122,930
---------------
7,840,217
---------------
SOUTH CAROLINA (3.0%)
1,000,000 Charleston County, SC, Health Care RV,
Care Alliance Health Services, Series
A, FSA insured, 5.00%, 8/15/05 1,017,080
1,000,000 Medical University of South Carolina,
Hospital Facilities RV, COP,
Harborview Office Tower Project,
7.38%, 1/1/04 1,071,180
500,000 South Carolina Educational Television
Community COP RV, ETV Endowment of
South Carolina, Inc., FSA insured,
6.40%, 9/1/02 532,215
---------------
2,620,475
---------------
TENNESSEE (2.6%)
2,000,000 Metropolitan Governments of Nashville &
Davidson County, TN, Health &
Educational Facilities RV, Meharry
Medical College Project, AMBAC
insured, ETM, 6.88%, 12/1/24, P/R
12/1/04 @ 102 2,259,080
---------------
TEXAS (13.4%)
355,000 De Soto, TX, Housing Finance Corp., MFHR
Bonds, Windsor Foundation Project,
Series A, 6.13%, 2/1/05 378,955
1,580,000 Fort Bend, TX, Levee Improvement
District # 2, GO Bonds, MBIA insured,
0.00% (9.40% effective yield), 2/15/03 1,340,330
525,000 Grand Prairie, TX, Health Facilities RV,
Dallas/Fort Worth Medical Center
Project, 6.00%, 11/1/99 529,405
535,000 Grape Creek-Pulliam, TX, ISD, EFA RV,
Public Facilities Corp., 6.20%,
5/15/02 545,834
250,000 Harlandale, TX, ISD Public Facilites
Corp. Lease Revenue, Educational
Facilities RV, 5.20%, 10/15/06 250,928
375,000 Hereford, TX, ISD, Educational
Facilities RV, Public Facilities Corp.
School Lease Revenue, 4.70%, 8/15/04 375,795
</TABLE>
[LOGO]
See Notes to Schedules of Investments
26
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) JUNE 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
LIMITED TERM TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
TEXAS (continued)
<TABLE>
<C> <S> <C>
355,000 Hereford, TX, ISD, Educational
Facilities RV, Public Facilities Corp.
School Lease Revenue, 4.60%, 8/15/03 $ 355,827
750,000 Houston, TX, Housing Finance Corp., SFM
RV, Series A-1, 8.00%, 6/1/14 776,828
250,000 Houston, TX, Housing Finance Corp., SFM
RV, Series B-1, 8.00%, 6/1/14 258,943
1,160,000 Lyford, TX, Consolidated Independent SD,
Educational Facilities RV, 5.00%,
8/15/07 1,134,202
3,100,000 Midland County, TX, Hospital District
RV, Capital Appreciation, AMBAC
insured, 0.00% (8.00% effective
yield), 6/1/07 2,006,040
280,000 San Antonio, TX, Certificate of
Obligation, Series 2000, 4.50%,
2/1/02, WI 279,524
295,000 San Antonio, TX, Certificate of
Obligation, Series 2000, 4.50%,
2/1/03, WI 293,566
305,000 San Antonio, TX, Certificate of
Obligation, Series 2000, 4.50%,
2/1/04, WI 302,401
320,000 San Antonio, TX, Certificate of
Obligation, Series 2000, 4.50%,
2/1/05, WI 315,680
335,000 San Antonio, TX, Certificate of
Obligation, Series 2000, 4.50%,
2/1/06, WI 327,975
350,000 San Antonio, TX, Certificate of
Obligation, Series 2000, 4.50%,
2/1/07, WI 340,137
370,000 San Antonio, TX, Certificate of
Obligation, Series 2000, 4.50%,
2/1/08, WI 356,528
385,000 San Antonio, TX, Certificate of
Obligation, Series 2000, 4.50%,
2/1/09, WI 370,801
660,000 San Antonio, TX, HEFA RV, University of
Texas at San Antonio, Phase I, 6.50%,
11/1/01 687,720
420,000 Texas Water Resource Finance Authority
RV, AMBAC insured, 7.50%, 8/15/03 422,012
---------------
11,649,431
---------------
WASHINGTON (6.3%)
125,000 Longview, WA, Housing Authority RV, MFHR
Bonds, Pooled Project Financing,
4.60%, 10/1/03 123,851
125,000 Longview, WA, Housing Authority RV, MFHR
Bonds, Pooled Project Financing,
4.75%, 10/1/06 122,811
125,000 Longview, WA, Housing Authority RV, MFHR
Bonds, Pooled Project Financing,
4.70%, 10/1/04 123,618
125,000 Longview, WA, Housing Authority RV, MFHR
Bonds, Pooled Project Financing,
4.75%, 10/1/05 123,396
850,000 Seattle, WA, MFHR Bonds, Market House
Elderly Housing, Series A, 6.20%,
2/1/04 867,561
2,000,000 Washington State Housing Finance
Commission, Nonprofit Housing RV,
Ocean Ridge Apartments Project, Series
A, 5.25%, 7/1/02 2,000,580
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
LIMITED TERM TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
WASHINGTON (continued)
<TABLE>
<C> <S> <C>
1,000,000 Washington State Public Power Supply,
System Nuclear Project #2, Power RV,
AMBAC insured, 6.00%, 7/1/06 $ 1,070,350
1,000,000 Washington State Public Power Supply,
System Nuclear Project #2, Power RV,
FGIC insured, 6.50%, 7/1/05, P/R
7/1/01 @ 102 1,063,840
---------------
5,496,007
---------------
WISCONSIN (4.1%)
500,000 Wisconsin Housing & EDA, Housing RV,
Series A, HUD insured, 6.20%, 11/1/01 516,025
1,000,000 Wisconsin State, GO Bonds, Series 2,
5.00%, 5/1/06 1,018,180
2,000,000 Wisconsin State, GO Bonds, Series C,
COLL by USG, 5.10%, 5/1/09, P/R 5/1/06
@ 100 2,052,660
---------------
3,586,865
---------------
TOTAL MUNICIPAL BONDS (COST $86,538,655) 86,343,577
---------------
SHORT-TERM HOLDINGS (0.6%)
532,488 Norwest Municipal Money Market Fund
(cost $532,488) 532,488
---------------
TOTAL INVESTMENTS (100.0%) (COST $87,071,143) $ 86,876,065
---------------
---------------
- -----------------------------------------------------------------
TAX-FREE INCOME FUND
- -----------------------------------------------------------------
MUNICIPAL BONDS (98.4%)
ARIZONA (1.0%)
3,000,000 Maricopa County, AZ, Union SD #48, GO
Bonds, School Improvements, 9.00%,
7/1/05 $ 3,686,430
---------------
CALIFORNIA (2.7%)
1,885,000 Los Angeles, CA, Community Redevelopment
Agency Housing RV, Monterey Hills
Redevelopment Project, Series A,
8.20%, 12/1/13 2,122,717
7,000,000 Metropolitan Water District, Southern
California, Waterworks RV, Inverse
Regional RIBS, 7.96% V/R, 8/10/18
Floater, 7,813,750
---------------
9,936,467
---------------
COLORADO (8.4%)
2,690,000 Adams County, CO, SFM RV, Series A-2,
8.70%, 6/1/12 2,860,573
1,750,000 Arapahoe County, CO, Utilities RV, Water
& Wastewater Authority, 6.25%, 12/1/20 1,864,993
2,000,000 Black Hawk, CO, Business Improvements
District, Special Assessment Bonds,
Series #98-1, 7.00%, 12/1/11 2,020,200
</TABLE>
[LOGO]
See Notes to Schedules of Investments
27
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) JUNE 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
TAX-FREE INCOME FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
COLORADO (continued)
<TABLE>
<C> <S> <C>
1,000,000 Colorado HFA, GO Bonds, Series A, 7.40%,
5/1/11 $ 1,046,990
1,320,000 Colorado HFA, SFM RV, Series A-2, 7.15%,
11/1/14 1,474,018
1,705,000 Colorado HFA, SFM RV, Series B-2, 7.50%,
12/1/16 1,891,987
2,020,000 Colorado HFA, SFM RV, Series C, 7.90%,
12/1/24 2,186,771
1,665,000 Colorado HFA, SFM RV, Series D-1,
remarketed 7/15/94, 8.00%, 12/1/24 1,777,038
1,315,000 Colorado HFA, SFM RV, Series D-2,
remarketed 11/15/94, 8.13%, 6/1/25 1,401,277
2,000,000 Denver, CO, City & County, Airport RV,
Series A, 5.00%, 11/15/25 1,857,580
5,200,000 Denver, CO, Urban Renewal Authority, Tax
Increment RV, remarketed 6/15/94,
9.13%, 9/1/17 5,991,700
3,500,000 El Paso County, CO, GO Bonds, SD #11,
Colorado Springs, 7.10%, 12/1/17 4,246,584
345,000 Logan County, CO, SFM RV, Series A,
8.50%, 11/1/11 364,841
985,000 Northern Metropolitan District, CO, RV,
Adams County, 6.50%, 12/1/16 1,034,368
530,000 Vail, CO, SFM RV, Series 1992 A, 8.13%,
6/1/10 565,759
---------------
30,584,679
---------------
FLORIDA (1.9%)
3,000,000 Lakeland, FL, Electric & Water RV, First
Lien, Series B, FSA insured, 6.05%,
10/1/14 3,280,920
2,825,000 Palm Beach County, FL, Health Facilities
Authority RV, John F. Kennedy Memorial
Hospital, Inc., Project, COLL by U.S.
Government Securities, 9.50%, 8/1/13 3,709,621
---------------
6,990,541
---------------
GEORGIA (1.6%)
3,650,000 Georgia Municipal Electric Authority
Power RV, Series BB, MBIA insured,
5.25%, 1/1/25 3,577,146
1,000,000 Georgia State, Private Colleges &
Universities Authority RV, Mercer
University Project, Series A, 5.25%,
10/1/25 944,860
1,500,000 Houston County, GA, Development
Authority, MFHR, Emerald Coast
Housing, Series A, 7.00%, 8/1/28 1,456,425
---------------
5,978,431
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
TAX-FREE INCOME FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
<TABLE>
<C> <S> <C>
HAWAII (2.0%)
7,250,000 Hawaii State Department of Budget &
Finance, Special Purpose Revenue,
Health Care RV, The Queens Health
Systems, Series A, 5.75%, 7/1/26 $ 7,338,813
---------------
IDAHO (0.1%)
500,000 Pocatello, ID, IDA RV, Allocation Tax
Increment Bonds, Series B, 7.25%,
12/1/08 511,240
---------------
ILLINOIS (8.5%)
25,000,000 Illinois Development Finance Authority,
Retirement Housing RV, Regency Park,
Series A, remarketed 4/1/92, ETM,
0.00% (7.00% effective yield), 7/15/23 5,364,750
1,770,000 Illinois Development Financial Authority
RV, Community Rehabilitation
Providers, Series A, 7.88%, 7/1/20 2,079,608
975,000 Illinois Development Financial Authority
RV, Community Rehabilitation
Providers, Series A, 7.88%, 7/1/20 1,068,824
4,940,000 Illinois Educational Facilities
Authority RV, Capital Appreciation,
refunded, ETM, 0.00% (5.95% effective
yield), 7/1/14 1,931,144
1,120,000 Illinois Health Facilities Authority,
Health Care RV, Edgewater Medical
Center, Series A, 9.25%, 7/1/24 1,368,875
1,025,000 Lake County, IL, Community Unit SD #116,
Educational Facilities RV, Rund Lake,
7.60%, 2/1/13 1,231,117
7,350,000 Regional Transportation Authority, IL,
Sales Tax RV, Series D, FGIC insured,
7.75%, 6/1/19 9,446,807
8,000,000 Regional Transportation Authority, IL,
Transportation RV, FGIC insured,
6.00%, 6/1/23 8,679,600
---------------
31,170,725
---------------
INDIANA (0.8%)
2,900,000 Indiana Transportation Financial
Authority Highway RV, Series A, AMBAC
insured, 5.25%, 6/1/15 2,904,524
---------------
KANSAS (2.1%)
3,175,000 Kansas State, DOT, Highway RV, Series A,
7.25%, 9/1/08 3,712,845
3,755,000 Sedgwick & Shawnee Counties, KS, SFM RV,
Mortgage Backed Securities, Series
A-2, Step Coupon, COLL by GNMA, 6.70%,
6/1/29 4,133,242
---------------
7,846,087
---------------
</TABLE>
[LOGO]
See Notes to Schedules of Investments
28
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) JUNE 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
TAX-FREE INCOME FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
<TABLE>
<C> <S> <C>
LOUISIANA (1.5%)
3,000,000 Louisiana Local Government Environmental
Facilities Community Development RV,
Cap Projects & Equipment Acquisition,
AMBAC insured, 4.50%, 12/1/18 $ 2,675,880
5,000,000 Rapides Parish, LA, Housing & Mortgage
Finance Authority, Capital
Appreciation RV, Series C, 0.00%
(7.45% effective yield), 7/10/14 1,790,800
2,900,000 St. Bernard Parish, LA, Housing Mortgage
Agency, SFM RV, Series 1992 C, 0.00%
(7.65% effective yield), 7/10/14 955,231
---------------
5,421,911
---------------
MARYLAND (1.2%)
4,520,000 Maryland State Economic Development
Corp. Student Housing RV, Collegiate
Housing-Courtyard-A Project, 5.75%,
6/1/31 4,425,984
---------------
MASSACHUSETTS (5.1%)
5,325,000 Massachusetts Bay Transportation
Authority, General Transportation
System RV, Series B, 6.20%, 3/1/16 5,885,030
2,500,000 Massachusetts State College Building
Authority, Educational Facilities RV,
Series A, 7.50%, 5/1/14 3,073,325
2,500,000 Massachusetts State Industrial Finance
Agency, Nursing Home RV, FHA-
University Commons Nursing Home,
Series A, FHA insured, 6.65%, 8/1/38 2,803,500
7,000,000 Massachusetts State Turnpike Authority,
Metropolitan Highway System RV, Series
A, MBIA insured, 5.00%, 1/1/37 6,380,010
490,000 New Bedford, MA, IDA RV, Aerovox, Inc.
Project, Series 1982, 7.42%, 7/1/02 494,616
---------------
18,636,481
---------------
MICHIGAN (3.2%)
1,500,000 Jenison, MI, Public Schools, GO Bonds,
FGIC insured, 5.25%, 5/1/14 1,512,990
6,030,000 Michigan State, Hospital Finance
Authority RV, Harper-Grace Hospitals,
ETM, 7.13%, 5/1/09 6,705,420
2,760,000 Wayland, MI, Unified SD, GO Bonds, FGIC
insured, 8.00%, 5/1/10 3,428,886
---------------
11,647,296
---------------
MISSISSIPPI (1.6%)
1,500,000 Mississippi Development Bank, Special
Obligation, Capital Projects &
Equipment Acquisition, Series A1,
5.88%, 7/1/24 1,579,080
3,600,000 Mississippi Development Bank, Special
Obligation, Capital Projects &
Equipment Acquisition, Series B,
5.55%, 7/1/24 3,498,156
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
TAX-FREE INCOME FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
MISSISSIPPI (continued)
<TABLE>
<C> <S> <C>
2,000,000 Mississippi Home Corp., Residual Capital
Appreciation RV, Series 1992 II, 0.00%
(7.38% effective yield), 4/15/12 $ 798,520
---------------
5,875,756
---------------
NEBRASKA (0.3%)
1,000,000 Nebraska Investment Finance Authority,
Hospital RV, Great Plains Regional
Medical Center Project, 5.45%,
11/15/17 984,090
---------------
NEVADA (1.3%)
5,000,000 Clark County, NV, EDA RV, Alexander
Dawson School NV Project, 5.50%,
5/15/29 4,750,550
---------------
NEW HAMPSHIRE (0.2%)
565,000 New Hampshire HEHFA RV, New London
Hospital Association Project, 7.00%,
6/1/00 573,119
---------------
NEW JERSEY (0.5%)
1,570,000 New Jersey Health Care Facilities,
Financing Authority RV, Englewood
Hospital & Medical Center, 6.50%,
7/1/09 1,691,110
---------------
NEW MEXICO (4.0%)
5,295,000 Bernalillo County, NM, Gross Receipts
Tax RV, Series B, 5.70%, 4/1/27 5,579,077
815,000 Hobbs, NM, SFM RV, 8.75%, 7/1/11 890,396
985,000 New Mexico State Hospital Equipment Loan
Council, Hospital RV, New Medical
Center, Inc. Project, 4.85%, 6/1/08 953,500
6,585,000 Santa Fe County, NM, Correctional
Systems RV, FSA insured, 6.00%, 2/1/27 7,193,191
---------------
14,616,164
---------------
NEW YORK (5.8%)
10,000,000 Metropolitan Transportation Authority,
NY, Transportation Facilities RV,
Series A, MBIA insured, 5.63%, 7/1/25 10,152,800
1,200,000 New York State Dorm Authority, Health
Care RV, Good Samaritan Hospital-
Suffern, 5.50%, 7/1/10 1,228,356
6,670,000 New York State, COP, Commercial General
Services Executive Department, 4.75%,
8/1/00 6,750,907
1,480,000 New York, NY, GO Bonds, Series B-1,
7.30%, 8/15/10, P/R 8/15/04 @ 101 1,683,471
1,340,000 New York, NY, GO Bonds, Series B-1,
7.38%, 8/15/13, P/R 8/15/04 @ 101 1,528,779
---------------
21,344,313
---------------
NORTH CAROLINA (0.4%)
1,500,000 Cumberland County, NC, Hospital
Facilities RV, Cumberland County
Hospital Systems, Inc., 5.25%, 10/1/29 1,389,870
---------------
</TABLE>
[LOGO]
See Notes to Schedules of Investments
29
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) JUNE 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
TAX-FREE INCOME FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
<TABLE>
<C> <S> <C>
OHIO (0.3%)
1,000,000 Pike County, OH, Hospital Facilities RV,
Pike Health Services, Inc. Project,
6.35%, 7/1/07 $ 1,038,900
---------------
OKLAHOMA (0.4%)
1,245,000 Tulsa, OK, IDA RV, University of Tulsa,
Series A, MBIA insured, 6.00%, 10/1/16 1,349,256
---------------
OREGON (3.9%)
1,000,000 Columbia County, OR, GO Bonds, SD #502,
FGIC insured, 0.00% (3.70% effective
yield), 6/1/01 924,710
1,000,000 Columbia County, OR, GO Bonds, SD #502,
FGIC insured, 0.00% (4.00% effective
yield), 6/1/03 841,880
5,000,000 Klamath Falls, OR, Electric RV, Lien-
Klamath Cogen, 6.00%, 1/1/25 4,932,550
5,810,000 Tri-County Metropolitan Transportation
District, OR, RV, Series One, Morgan
Guaranty Trust, LOC, 5.40%, 6/1/19 5,702,050
2,000,000 Washington County, OR, Housing Authority
RV, Affordable Housing Pool, Series A,
6.13%, 7/1/29 1,947,820
---------------
14,349,010
---------------
PENNSYLVANIA (3.5%)
1,600,000 Allentown, PA, Area Hospital Authority,
Health Care RV, Sacred Heart Hospital-
Allentown, Series A, ACA insured,
5.00%, 7/1/12 1,515,696
4,230,000 Cumberland County, PA, Municipal
Authority RV, Carlisle Hospital &
Health, 6.80%, 11/15/23 4,518,190
6,000,000 Pennsylvania State Higher Education
Assistance Agency, Student Loan RV,
AMBAC insured, 8.46% V/R, 3/1/22 6,772,500
---------------
12,806,386
---------------
SOUTH CAROLINA (6.5%)
10,625,000 Connector 2000 Association, Inc., SC,
Toll Road RV, Southern Connector
Project, Series A, 5.38%, 1/1/38 9,318,019
8,000,000 Piedmont Municipal Power Agency, SC,
Electric RV, Series A, 5.25%, 1/1/21 7,325,600
1,600,000 Piedmont Municipal Power Agency, SC,
Electric RV, Series A, MBIA insured,
5.25%, 1/1/12 1,610,944
2,420,000 Piedmont, Municipal Power Agency, SC,
Electric RV, Series A, 6.60%, 1/1/21 2,424,622
3,170,000 Piedmont, Municipal Power Agency, SC,
Electric RV, Series A, 6.55%, 1/1/16 3,176,213
---------------
23,855,398
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
TAX-FREE INCOME FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
<TABLE>
<C> <S> <C>
SOUTH DAKOTA (1.1%)
3,500,000 South Dakota State, HEHFA RV, Huron
Regional Medical Center, 7.30%, 4/1/16 $ 4,071,830
---------------
TENNESSEE (1.0%)
14,250,000 Metropolitan Governments of Nashville &
Davidson County, TN, Health &
Educational Facilities RV, Volunteer
Health Care, ETM, 0.00% (5.72%
effective yield), 6/1/21 3,773,400
---------------
TEXAS (14.2%)
415,000 Baytown, TX, Housing Finance Corp., SFM
RV, Series 1992 A, 8.50%, 9/1/11 457,504
1,855,000 Beaumont, TX, Housing Finance Corp. RV,
9.20%, 3/1/12 2,024,269
10,500,000 Brazos River Authority, TX, Utilities
RV, Houston Industries, Inc. Project,
Series D, MBIA insured, 4.90%, 10/1/15 9,984,975
2,965,000 Brazos River Authority, TX, Utilities
RV, Houston Light & Power Company
Project, AMBAC insured, 5.05%, 11/1/18 2,819,003
2,840,000 Chapel Hill, TX, ISD Public Facilities
Corp., Lease RV, Educational
Facilities RV, 5.75%, 8/15/23 2,711,604
1,550,000 Corpus Christi, TX, HFA, Housing RV,
Series A, MBIA insured, 7.70%, 7/1/11 1,671,257
2,395,000 De Soto, TX, Housing Finance Corp., MFHR
Bonds, Windsor Foundation Project,
Series A, 7.00%, 2/1/25 2,736,599
210,000 El Paso, TX, Housing Finance Corp., SFM
RV, Series A, 8.75%, 10/1/11 225,851
285,000 Galveston County, TX, Property Finance
Authority, Inc., SFM RV Series A,
8.50%, 9/1/11 303,391
1,300,000 Grape Creek-Pulliam, TX, ISD Public
Facilities Corp., GO Bonds, 7.25%,
5/15/21 1,437,501
1,115,000 Harlandale, TX, ISD Public Facilites
Corp. Lease RV, Educational Facilities
RV, 5.50%, 10/15/12 1,117,943
2,245,000 Hereford, TX, ISD, Public Facilities
Corp., School Lease RV, 5.25%, 8/15/18 2,150,777
9,750,000 Houston, TX, Housing Finance Corp., SFM
RV, Series A-1, 8.00%, 6/1/14 10,098,758
5,950,000 Houston, TX, Housing Finance Corp., SFM
RV, Series B-1, 8.00%, 6/1/14 6,162,832
1,180,000 Port Arthur, TX, Housing Finance Corp.,
SFM RV, 8.70%, 3/1/12 1,276,807
4,180,000 San Antonio, TX, HEHFA RV, 7.13%,
11/1/15 4,493,458
2,200,000 Texas State Department of Housing &
Community Affairs, SFM RV, Series A,
8.10%, 9/1/15 2,467,652
---------------
52,140,181
---------------
</TABLE>
[LOGO]
See Notes to Schedules of Investments
30
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) JUNE 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
TAX-FREE INCOME FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
<TABLE>
<C> <S> <C>
UTAH (3.8%)
2,450,000 Salt Lake County, UT, EFA RV,
Westminister College Project, 5.75%,
10/1/27 $ 2,453,234
12,500,000 Weber County, UT, Hospital RV, IHC
Health Services Inc., AMBAC insured,
5.00%, 8/15/30 11,460,000
---------------
13,913,234
---------------
VIRGINIA (0.9%)
3,000,000 Fairfax County, VA, Redevelopment &
Housing Authority, MFHR Bonds, Burke
Shire Commons, 7.60%, 10/1/36 3,238,410
---------------
WASHINGTON (8.3%)
1,748,000 Kitsap County, WA, Housing Authority RV,
MFHR Bonds, Low Income Housing, COLL
by GNMA, 7.10%, 2/20/16 2,033,239
2,750,000 Washington Public Power Supply System,
Power RV, Nuclear Project #2, Series
A, 6.00%, 7/1/07 2,932,353
4,000,000 Washington Public Power Supply System,
Power RV, Nuclear Project #1, Series
A, 6.00%, 7/1/07 4,287,040
3,500,000 Washington State Housing Finance
Commission, Nonprofit Housing RV, VA
Mason Research Center Project, Series
A, U.S. Bank of Washington, LOC,
5.70%, 1/1/24 3,515,085
1,620,000 Washington State Housing Finance
Commission, Nonprofit Housing RV, VA
Mason Research Center Project, Series
A, U.S. Bank of Washington, LOC,
5.65%, 1/1/19 1,625,719
4,000,000 Washington State Housing Finance
Commission, Nonprofit Housing RV,
Ocean Ridge Apartments Project, Series
A, 5.25%, 7/1/02 4,001,160
9,230,000 Washington State, University of
Washington, Education Lease RV, 4225
Roosevelt Project, Series A, 5.38%,
6/1/29 8,769,515
3,000,000 Yakima County, WA, SD #007, GO Bonds,
MBIA insured, 6.75%, 12/1/06 3,360,420
---------------
30,524,531
---------------
WISCONSIN (0.3%)
1,100,000 Wisconsin State, HEFA RV, Mercy Hospital
of Janesville, Inc., 6.60%, 8/15/22 1,156,518
---------------
TOTAL MUNICIPAL BONDS (COST $355,918,383) 360,521,635
---------------
SHORT-TERM HOLDINGS (1.6%)
2,121,163 Norwest Municipal Money Market Fund 2,121,163
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
TAX-FREE INCOME FUND (continued)
- -----------------------------------------------------------------
</TABLE>
SHORT-TERM HOLDINGS (continued)
<TABLE>
<C> <S> <C>
3,599,998 US Bank BI, Series 1998 B, Class A,
4.50% V/R, 8/11/99 $ 3,599,998
---------------
TOTAL SHORT-TERM HOLDINGS (COST $5,721,161) 5,721,161
---------------
TOTAL INVESTMENTS (100.0%) (COST $361,639,544) $ 366,242,796
---------------
---------------
- -----------------------------------------------------------------
COLORADO TAX-FREE FUND
- -----------------------------------------------------------------
MUNICIPAL BONDS (96.5%)
AIRPORT REVENUE (3.9%)
1,500,000 Denver, CO, City & County, Airport RV,
Series A, 5.00%, 11/15/25 $ 1,393,185
1,500,000 Denver, CO, City & County, Airport RV,
Series A, MBIA insured, 5.50%,
11/15/25 1,501,530
1,000,000 Denver, CO, City & County, Airport RV,
Series A, MBIA insured, 5.60%,
11/15/20 1,015,620
---------------
3,910,335
---------------
CERTIFICATES OF PARTICIPATION & LEASE REVENUE (5.1%)
1,315,000 Eagle County, CO, COP, MBIA insured,
5.40%, 12/1/18 1,318,787
100,000 Garfield County, CO, Roaring Fork SD,
COP, Lease Purchase Declaration Trust,
5.50%, 6/15/18 97,697
1,525,000 Teller County, CO, COP, 5.75%, 12/1/18 1,557,040
2,000,000 Teller County, CO, COP, Bank N.A., LOC,
5.88%, 12/1/24 2,049,220
---------------
5,022,744
---------------
EDUCATION FACILITIES REVENUE (2.8%)
2,000,000 Colorado Educational & Cultural
Facilities, RV, Alexander Dawson
School, 5.30%, 2/15/29 1,903,880
1,385,000 Colorado School of Mines, Auxiliary
Facilities RV, Capital Appreciation-
Enterprise, MBIA insured, 0.00% (5.29%
effective yield), 12/1/19 444,848
1,385,000 Colorado School of Mines, Auxiliary
Facilities RV, Capital Appreciation-
Enterprise, MBIA insured, 0.00% (5.31%
effective yield), 12/1/20 419,031
---------------
2,767,759
---------------
ESCROWED IN TREASURIES (4.6%)
20,000,000 Dawson Ridge Metropolitan District No.1,
CO, GO Bonds, Series B, ETM, 0.00%
(6.10% effective yield), 10/1/22 4,514,200
---------------
GENERAL OBLIGATION (20.9%)
1,560,000 Aurora Centretech Metropolitan District,
CO, GO Bonds, Series C, Banque
Nationale de Paris, LOC, 4.88%,
12/1/28 1,517,162
</TABLE>
[LOGO]
See Notes to Schedules of Investments
31
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) JUNE 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
COLORADO TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
GENERAL OBLIGATION (continued)
<TABLE>
<C> <S> <C>
850,000 Boulder, Larimer & Weld Counties, CO,
St. Vrain Valley School District
RE-1J, GO Bonds, FGIC insured, 5.00%,
12/15/22 $ 807,763
500,000 Centennial 25 Metropolitan District, CO,
GO Bonds, Arapahoe County, 6.38%,
12/1/16 540,060
390,000 Denver West Metropolitan District, CO,
GO Bonds, Series B, 5.60%, 12/1/12 406,474
500,000 Denver, CO, City & County SD #1, GO
Bonds, Series A, 6.50%, 6/1/10 561,825
2,000,000 Eagle, Garfield & Routt Counties, CO, SD
#50J, GO Bonds, FGIC insured, 4.80%,
12/1/18 1,859,600
115,000 El Paso County, CO, GO Bonds, SD #11,
Colorado Springs, 6.50%, 12/1/10 128,747
2,500,000 El Paso County, CO, GO Bonds, SD #11,
Colorado Springs, 7.10%, 12/1/17 3,033,275
1,060,000 El Paso County, CO, GO Bonds, SD #3,
Widefield, MBIA insured, 0.00% (4.65%
effective yield), 12/15/08 654,084
1,100,000 Highlands Ranch, CO, Metropolitan
District #2, GO Bonds, FSA insured,
6.50%, 6/15/12 1,243,022
1,000,000 Highlands Ranch, CO, Metropolitan
District #2, UTGO Bonds, FSA insured,
6.50%, 6/15/11 1,125,590
1,390,000 Highlands Ranch, CO, Metropolitan
District #3, UTGO Bonds, ACA insured,
5.13%, 12/1/12 1,363,521
350,000 Highlands Ranch, CO, Metropolitan
District #4, UTGO Bonds, Series A,
6.10%, 12/1/11 366,405
800,000 Highlands Ranch, CO, Metropolitan
District #4, UTGO Bonds, Series A,
6.30%, 12/1/17 845,440
2,000,000 Jefferson County, CO, SD #R-001, GO
Bonds, MBIA insured, 6.25%, 12/15/08 2,198,400
1,500,000 Jefferson County, CO, SD #R-001, GO
Bonds, Series A, FGIC insured, 5.13%,
12/15/15 1,473,795
2,500,000 Metex Metropolitan District, CO, GO
Bonds, Series A, 5.80%, 12/1/16 2,623,075
---------------
20,748,238
---------------
HEALTH CARE REVENUE (11.6%)
1,000,000 Boulder County, CO, Hospital RV,
Longmont United Hospital Project,
5.60%, 12/1/27 967,530
705,000 Colorado Health Facilities Authority RV,
National Jewish Medical & Research,
Series B, 5.25%, 1/1/18 653,817
1,000,000 Colorado Health Facilities Authority RV,
Catholic Health Initiatives, Series A,
5.00%, 12/1/18 936,780
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
COLORADO TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
HEALTH CARE REVENUE (continued)
<TABLE>
<C> <S> <C>
1,000,000 Colorado Health Facilities Authority RV,
National Jewish Medical & Research
Center, 5.38%, 1/1/28 $ 925,390
2,500,000 Colorado Health Facilities Authority RV,
Parkview Medical Center Inc. Project,
5.30%, 9/1/25 2,310,425
1,250,000 Colorado Health Facilities Authority RV,
Sisters of Charity, Series A, AMBAC
insured, 6.25%, 5/15/11 1,389,163
1,250,000 Colorado Health Facilities Authority RV,
Steamboat Springs Health Project,
5.70%, 9/15/23 1,200,775
1,500,000 Colorado Health Facilities Authority RV,
Steamboat Springs Health, 5.75%,
9/15/22 1,436,910
220,000 Colorado Health Facilities Authority RV,
Weld County, General Hospital Project,
ETM, 9.38%, 7/1/09 269,588
1,000,000 Denver, CO, Health & Hospital RV, Series
A, 5.38%, 12/1/28 920,530
500,000 LA Junta, CO, Hospital RV, Ark Valley
Regional Medical Center Project,
6.00%, 4/1/19 494,250
---------------
11,505,158
---------------
INDUSTRIAL DEVELOPMENT REVENUE (2.1%)
2,000,000 Fort Collins, CO, PCR Bonds, Anheuser
Busch Project, 6.00%, 9/1/31 2,064,260
---------------
MULTI-FAMILY HOUSING REVENUE (2.9%)
300,000 Aurora, CO, Housing Authority Finance
Corp., MFHR Bonds, Mountainview Place,
FHA insured, 7.13%, 9/1/22 317,076
1,000,000 Boulder County, CO, MFHR Bonds, Thistle
Community Housing, 6.38%, 6/1/29 984,830
1,500,000 San Miguel County, CO, HFA, MFHR Bonds,
Telluride Village Apartments Project,
6.40%, 7/1/23 1,591,560
---------------
2,893,466
---------------
OTHER REVENUE (13.2%)
1,000,000 Black Hawk, CO, Business Improvements
District, Special Assessment Bonds,
Series #98-1, 7.00%, 12/1/11 1,010,100
1,470,000 Black Hawk, CO, Business Improvements
District, Special Assignment RV,
District #97-1, 6.00%, 12/1/09 1,480,584
140,000 Blackhawk, CO, Device Tax RV, 5.60%,
12/1/04 144,299
145,000 Blackhawk, CO, Device Tax RV, 5.70%,
12/1/05 150,010
3,000,000 Denver, CO, City & County RV, Helen G.
Bonfils Foundation Project, Series B,
5.13%, 12/1/17 2,878,980
4,075,000 Ironwood Trust II, Series 1998-A, Class
A, 4.90%, 1/1/04 4,072,718
</TABLE>
[LOGO]
See Notes to Schedules of Investments
32
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) JUNE 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
COLORADO TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
OTHER REVENUE (continued)
<TABLE>
<C> <S> <C>
1,210,000 Montrose County, CO, COP, Series A,
6.40%, 12/1/12 $ 1,305,094
980,000 Northern Metropolitan District, CO, RV,
Adams County, 6.50%, 12/1/16 1,029,118
335,000 Pueblo, CO, COP, Public Parking-Lease,
Purchase & Sublease, 6.90%, 7/1/15 364,654
600,000 Summit County, CO, Sports Facilities RV,
Keystone Resorts Management Project,
GTD by Ralston Purina Corp., 7.38%,
9/1/10 698,082
---------------
13,133,639
---------------
SINGLE FAMILY HOUSING REVENUE (18.6%)
705,000 Adams County, CO, SFM RV, Series A-2,
8.70%, 6/1/12 749,704
5,890,000 Colorado HFA, SFM RV, Series B-2, 7.45%,
11/1/27 6,559,811
270,000 Colorado HFA, SFM RV, Series B-2, 7.50%,
12/1/16 299,611
1,750,000 Colorado HFA, SFM RV, Series B-3, 6.55%,
5/1/25 1,927,975
2,005,000 Colorado HFA, SFM RV, Series C-2, 7.45%,
6/1/17 2,135,024
765,000 Colorado HFA, SFM RV, Series D-1,
remarketed 7/15/94, 8.00%, 12/1/24 816,477
1,315,000 Colorado HFA, SFM RV, Series D-2, 7.10%,
6/1/14 1,464,805
1,405,000 Colorado HFA, SFM RV, Series D-2,
remarketed 11/15/94, 8.13%, 6/1/25 1,497,182
2,000,000 Colorado HFA, SFH Bonds, SF Program,
Series B-2, 6.80%, 10/1/30 2,202,180
1,990,000 Larimer County, CO, SFM RV, Capital
Accumulator A, remarketed 2/15/94,
ETM, 0.00% (5.50% effective yield),
8/1/15 831,382
---------------
18,484,151
---------------
TOLL ROAD REVENUE (3.5%)
1,490,000 Arapahoe County, CO, Capital
Improvements & Transportation Highway
RV, Series E- 470, MBIA insured,
remarketed 8/31/95, 6.15%, 8/31/26 1,607,263
1,000,000 E-470 Public Highway Authority RV, MBIA
insured, 5.00%, 9/1/21 943,040
1,000,000 E-470 Public Highway Authority RV,
Series A, MBIA insured, 5.00%, 9/1/26 933,160
---------------
3,483,463
---------------
WATER & SEWER REVENUE (7.3%)
1,250,000 Arapahoe County, CO, Utilities RV, Water
& Wastewater Authority, 6.25%, 12/1/20 1,332,138
1,500,000 Colorado Springs, CO, Utilities RV,
Series A, 5.38%, 11/15/26 1,487,160
1,810,000 Colorado Water Reserve & Power
Development Authority, Drinking Water
RV, Series A, 4.88%, 9/1/17 1,709,744
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
COLORADO TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
WATER & SEWER REVENUE (continued)
<TABLE>
<C> <S> <C>
500,000 E-470 Business Metropolitan District,
CO, Water & Sewer RV, U.S. Bank N.A.,
LOC, 5.13%, 12/1/17 $ 477,045
1,600,000 E-470 Business Metropolitan District,
CO, Water & Sewer RV, U.S. Bank N.A.,
LOC, 5.30%, 12/1/18 1,556,640
725,000 Johnstown, CO, Water Activity RV, 5.50%,
12/1/18 708,064
---------------
7,270,791
---------------
TOTAL MUNICIPAL BONDS (COST $95,159,825) 95,798,204
---------------
SHORT-TERM HOLDINGS (3.5%)
1,715,000 Ironwood Trust II, Series 1998-A, Class
A, 3.79% V/R, 1/1/00 1,715,000
1,705,370 Norwest Municipal Money Market Fund 1,705,370
---------------
TOTAL SHORT-TERM HOLDINGS (COST $3,420,370) 3,420,370
---------------
TOTAL INVESTMENTS (100.0%) (COST $98,580,195) $ 99,218,574
---------------
---------------
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND
- -----------------------------------------------------------------
MUNICIPAL BONDS (98.9%)
AIRPORT REVENUE (0.9%)
2,075,000 Minneapolis & St. Paul, MN, Airport RV,
Series A, AMBAC insured, 5.00%, 1/1/19 $ 1,991,357
---------------
CERTIFICATES OF PARTICIPATION & LEASE REVENUE (3.6%)
440,000 Chaska, MN, EDA School Facilities Lease,
GO Bonds, ISD #112, Series A, 5.13%,
12/1/09 440,334
450,000 Chaska, MN, EDA School Facilities Lease,
GO Bonds, ISD #112, Series A, 5.13%,
12/1/10 448,826
520,000 Chaska, MN, EDA, School Facilities Lease
RV, 5.30%, 12/1/13 517,644
165,000 Eden Prairie, MN, HRA, Lease RV,
Community Center Project, Series A,
6.15%, 8/1/08 169,858
1,080,000 Hennepin County, MN, Lease RV, COP,
4.55%, 11/15/06 1,069,750
1,080,000 Lino Lakes, MN, EDA, Lease RV, Series A,
5.25%, 2/1/16 1,041,142
1,000,000 Minneapolis, MN, Special SD, COP, 5.60%,
2/1/02 1,006,720
400,000 Minneapolis, MN, Special SD, COP, 5.80%,
2/1/04 402,508
185,000 Savage, MN, EDA RV, Lease RV, 5.30%,
2/1/12 184,001
195,000 Savage, MN, EDA RV, Lease RV, 5.35%,
2/1/13 193,781
1,000,000 St. Cloud, MN, Law Enforcement Center
RV, 6.20%, 2/1/05 1,027,970
</TABLE>
[LOGO]
See Notes to Schedules of Investments
33
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) JUNE 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
CERTIFICATES OF PARTICIPATION & LEASE REVENUE (continued)
<TABLE>
<C> <S> <C>
245,000 St. Paul, MN, ISD #625, COP, Series B,
6.25%, 2/1/08 $ 257,774
260,000 St. Paul, MN, ISD #625, COP, Series B,
6.30%, 2/1/09 273,980
170,000 St. Paul, MN, ISD #625, COP, Series B,
5.70%, 2/1/02 175,360
230,000 St. Paul, MN, ISD #625, COP, Series B,
6.20%, 2/1/07 241,229
215,000 St. Paul, MN, ISD #625, COP, Series B,
6.10%, 2/1/06 224,795
195,000 St. Paul, MN, ISD #625, COP, Series B,
5.90%, 2/1/04 202,977
---------------
7,878,649
---------------
EDUCATION FACILITIES REVENUE (8.7%)
1,000,000 Hopkins, MN, Educational Facilities RV,
Blake School Project, 5.35%, 9/1/17 982,260
1,500,000 Minnesota State HEFA RV, Carleton
College, Series 4N, 5.00%, 11/1/18 1,437,990
2,200,000 Minnesota State HEFA RV, College at St.
Benedict, Series 4T, 5.13%, 3/1/13 2,116,158
365,000 Minnesota State HEFA RV, Northwestern
College of Chiro, Series 4Z, 4.50%,
10/1/05 359,700
420,000 Minnesota State HEFA RV, Northwestern
College of Chiro, Series 4Z, 4.75%,
10/1/08 407,425
400,000 Minnesota State HEFA RV, Northwestern
College of Chiro, Series 4Z, 4.63%,
10/1/07 389,664
150,000 Minnesota State HEFA RV, St. Mary's
College, Series 3Q, 5.70%, 10/1/03 156,207
280,000 Minnesota State HEFA RV, St. Mary's
College, Series 3Q, 5.80%, 10/1/04 293,636
295,000 Minnesota State HEFA RV, St. Mary's
College, Series 3Q, 5.90%, 10/1/05 309,284
340,000 Minnesota State HEFA RV, St. Mary's
College, Series 3Q, 6.00%, 10/1/08 348,769
485,000 Minnesota State HEFA RV, University of
St. Thomas, Series 3I, 6.00%, 10/1/99 488,080
400,000 Northfield, MN, Educational Facilites
RV, St. Olaf College Project, 6.05%,
10/1/04 423,956
3,750,000 University of Minnesota, Educational
Facilities RV, Series A, 5.50%, 7/1/21 3,859,087
1,000,000 University of Minnesota, Educational
Facilities RV, Series A, 5.75%, 7/1/11 1,058,270
1,000,000 University of Minnesota, Educational
Facilities RV, Series A, 5.75%, 7/1/18 1,060,280
2,000,000 University of Minnesota, Educational
Facilities RV, Series A, 5.50%, 7/1/08 2,088,740
2,795,000 University of Minnesota, Educational
Facilities RV, Series A, 5.75%, 7/1/17 2,964,880
---------------
18,744,386
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
<TABLE>
<C> <S> <C>
ELECTRIC REVENUE (11.1%)
260,000 New Prague, MN, Electric RV, 7.00%,
10/1/05 $ 262,070
3,000,000 Northern Minnesota Municipal Power
Agency, Electric RV, FSA insured,
5.50%, 1/1/08 3,122,879
2,000,000 Northern Minnesota Municipal Power
Agency, Electric System RV, Series B,
AMBAC insured, 5.50%, 1/1/18 2,013,660
160,000 Puerto Rico, Electric Power Authority
RV, Series N, COLL by USG, 7.00%,
7/1/07, P/R 7/1/99 @ 101.50 162,416
115,000 Puerto Rico, Electric Power Authority
RV, Series N, Unrefunded Balance,
7.00%,7/1/07 116,735
1,000,000 Puerto Rico, Electric Power Authority
RV, Series S, 6.13%, 7/1/08 1,098,620
2,500,000 Puerto Rico, Electric Power Authority
RV, Series X, 5.50%, 7/1/25 2,504,425
2,155,000 Southern Minnesota Municipal Power
Agency, Power Supply System RV, Series
A, AMBAC-TCRS insured, 5.00%, 1/1/09 2,162,715
10,000,000 Southern Minnesota Municipal Power
Agency, Power Supply System RV, Series
A, MBIA insured, 0.00% (6.70%
effective yield), 1/1/24 2,575,301
4,790,000 Southern Minnesota Municipal Power
Agency, Power Supply System RV,
Capital Appreciation, Series A, MBIA
insured, 0.00% (6.66% effective
yield), 1/1/20 1,552,918
2,830,000 Southern Minnesota Municipal Power
Agency, Power Supply System RV, Series
B, AMBAC-TCRS insured, 5.00%, 1/1/10 2,830,764
545,000 Southern Minnesota Municipal Power
Agency, Power Supply System RV,
Refunded Balance, Series A, 5.50%,
1/1/03 565,786
1,000,000 Southern Minnesota Municipal Power
Agency, Power Supply System RV,
Unrefunded Balance, Series B, 5.80%,
1/1/07 1,049,090
1,000,000 Southern Minnesota Municipal Power
Agency, Power Supply System RV, Series
A, 5.00%, 1/1/12 974,160
955,000 Southern Minnesota Municipal Power
Agency, Power Supply System RV,
Unrefunded Balance, Series A, 5.50%,
1/1/03 983,287
2,000,000 Southern Minnesota Municipal Power
Agency, Power Supply System RV, MBIA
insured, 0.00% (6.67% effective
yield), 1/1/21 611,180
</TABLE>
[LOGO]
See Notes to Schedules of Investments
34
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) JUNE 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
ELECTRIC REVENUE (continued)
<TABLE>
<C> <S> <C>
1,430,000 Western Minnesota Municipal Power
Agency, Power RV, Series A, 6.13%,
1/1/16 $ 1,432,703
---------------
24,018,709
---------------
ESCROWED IN TREASURIES (25.5%)
500,000 Alexandria, MN, ISD #206, GO Bonds,
Series A, 6.00%, 2/1/04, C/O 2/1/03 @
100 525,355
250,000 Alexandria, MN, ISD #206, GO Bonds,
Series A, 6.15%, 2/1/06, C/O 2/1/03 @
100 263,908
250,000 Alexandria, MN, ISD #206, GO Bonds,
Series A, 6.20%, 2/1/07, C/O 2/1/03 @
100 264,318
1,025,000 Anoka-Hennepin, MN, ISD #11, GO Bonds,
Series 1991 A, FSA insured, 6.75%,
2/1/09, 2/1/00 @ 100 1,044,455
1,100,000 Anoka-Hennepin, MN, ISD #11, GO Bonds,
Series 1991 A, FSA insured, 6.75%,
2/1/10, 2/1/00 @ 100 1,120,878
1,500,000 Bemidji, MN, Hospital Facilities, First
Mortgage RV, North Country Health
Services Project, Series 1991 A,
7.00%, 9/1/11, P/R 9/1/01 @ 102 1,615,305
160,000 Blaine, MN, IDR Bonds, Ball Corp.
Project, ETM USG, 7.13%, 12/1/04 179,218
290,000 Bloomington, MN, Tax Increment, GO
Bonds, 9.75%, 2/1/08, P/R 2/1/05 @ 100 362,491
640,000 Centennial, MN, ISD #12, GO Bonds,
Series A, FSA insured, 7.15%, 2/1/10,
P/R 2/1/00 @ 100 654,106
1,250,000 Chaska, MN, ISD #112, GO Bonds, Series
B, 5.75%, 2/1/07, C/O 2/1/00 @ 100 1,318,838
1,000,000 Chaska, MN, ISD #112, GO Bonds, Series
B, 5.75%, 2/1/09, C/O 2/1/00 @ 100 1,056,520
1,190,000 Detroit Lakes, MN, Health Care
Facilities RV, Benedictine Health
Systems, St. Mary, Series G, Connie
Lee insured, 6.00%, 2/15/12 1,272,586
205,000 Duluth, MN, GO Bonds, COLL by USG,
6.10%, 8/1/02, P/R 8/1/00 @ 100 210,541
210,000 Duluth, MN, GO Bonds, COLL by USG,
6.20%, 8/1/03, P/R 8/1/00 @ 100 215,897
215,000 Duluth, MN, GO Bonds, COLL by USG,
6.30%, 8/1/04, P/R 8/1/00 @ 100 221,265
1,250,000 Edina, MN, Hospital System RV, Fairview
Hospital, Series A, ETM, 7.13%,
7/1/06, P/R 7/1/99 @ 102 1,275,125
260,000 Hennepin County, MN, Lease RV, COP,
Series A, 6.15%, 5/15/02, P/R 11/15/01
@ 100 272,262
310,000 Hennepin County, MN, Lease RV, COP,
Series A, 6.25%, 11/15/03, P/R
11/15/01 @ 100 325,314
300,000 Hennepin County, MN, Lease RV, COP,
Series A, 6.45%, 11/15/05, P/R
11/15/01 @ 100 316,164
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
ESCROWED IN TREASURIES (continued)
<TABLE>
<C> <S> <C>
135,000 Hennepin County, MN, Lease RV, COP,
Series A, 6.45%, 5/15/05, P/R 11/15/01
@ 100 $ 142,274
145,000 Hennepin County, MN, Lease RV, COP,
Series A, 6.55%, 5/15/06 153,137
150,000 Hennepin County, MN, Lease RV, COP,
Series A, ETM, 5.85%, 11/15/99 151,383
1,700,000 Mankato, MN, Hospital Facilities RV,
Immanuel St. Joseph's Hospital, Series
A, 6.30%, 8/1/22, P/R 8/1/02 @ 102 1,830,356
60,000 Mankato, MN, Hospital Facilities RV,
Immanuel St. Joseph's Hospital, Series
C, 6.15%, 8/1/06, P/R 8/1/02 @ 102 64,253
50,000 Mankato, MN, Hospital Facilities RV,
Immanuel St. Joseph's Hospital, Series
C, 6.10%, 8/1/05, P/R 8/1/02 @ 102 53,473
1,100,000 Mankato, MN, ISD #77, GO Bonds, Series
A, FSA insured, 6.35%, 2/1/13, C/O
2/1/02 @ 100 1,154,307
300,000 Mankato, MN, Nursing Home RV, Mankato
Lutheran Home Project, Series A, COLL
by USG, 8.00%, 10/1/11, P/R 10/1/01 @
102 329,523
500,000 Metropolitan Council, MN, GO Bonds,
Minneapolis-St. Paul Metropolitan
Area, 7.10%, 12/1/02, C/O 12/1/99 @
100 507,630
805,000 Minneapolis & St. Paul, MN, HRA Health
Care System, HealthOne Obligated Group
Project, Series A, MBIA insured,
7.40%, 8/15/11, P/R 8/15/00 @ 102 853,751
550,000 Minneapolis & St. Paul, MN, HRA Health
Care System, HealthOne Obligated Group
Project, Series A, MBIA insured,
7.38%, 8/15/02 583,154
155,000 Minneapolis, MN, GO Bonds, 7.10%,
12/1/01, P/R 12/1/99 @ 100 157,434
165,000 Minneapolis, MN, GO Bonds, 7.10%,
12/1/02, P/R 12/1/99 @ 100 167,591
540,000 Minneapolis, MN, Hospital Facilities RV,
Abbott Northwestern Hospital Inc.,
COLL by USG, ETM, 6.50%, 12/1/06 576,616
1,500,000 Minneapolis, MN, Hospital Facilities RV,
Life Span Inc., AMBAC insured, COLL by
USG, 7.00%, 12/1/14, P/R 12/1/99 @ 102 1,552,260
10,000 Minneapolis, MN, Hospital Facilities RV,
Metropolitan Medical Center, COLL by
USG, ETM, 8.88%, 4/1/00 10,401
575,000 Minneapolis, MN, Hospital RV,
Minneapolis Children's Medical Center
Project, Series C, COLL by USG, 7.10%,
12/1/02, P/R 6/1/01 @ 102 617,694
</TABLE>
[LOGO]
See Notes to Schedules of Investments
35
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) JUNE 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
ESCROWED IN TREASURIES (continued)
<TABLE>
<C> <S> <C>
450,000 Minneapolis, MN, Hospital RV,
Minneapolis Children's Medical Center
Project, Series C, COLL by USG, 7.00%,
12/1/01, P/R 6/1/01 @ 102 $ 482,661
1,010,000 Minneapolis, MN, Special SD #1, UTGO
Bonds, 5.75%, 2/1/09, P/R 2/1/03 @ 100 1,055,824
525,000 Minnesota Public Facilities Authority,
Water PCR Bonds, Series A, GTD by USG,
7.10%, 3/1/12, P/R 3/1/00 @ 102 548,247
1,960,000 Minnesota Public Facilities Authority,
Water PCR Bonds, Series A, 6.50%,
3/1/14, P/R 3/1/02 @ 100 2,108,588
750,000 Minnesota Public Facilities Authority,
Water PCR Bonds, Series A, 6.25%,
3/1/15, P/R 3/1/05 @ 100 814,005
190,000 Minnesota State HEFA RV, Hamline
University, Series 3A, COLL by USG,
7.00%, 10/1/04, P/R 10/1/00 @ 100 197,518
205,000 Minnesota State HEFA RV, Hamline
University, Series 3A, COLL by USG,
7.00%, 10/1/05, P/R 10/1/00 @ 100 213,112
220,000 Minnesota State HEFA RV, Hamline
University, Series 3A, COLL by USG,
7.00%, 10/1/06, P/R 10/1/00 @ 100 228,705
235,000 Minnesota State HEFA RV, Hamline
University, Series 3A, COLL by USG,
7.00%, 10/1/07, P/R 10/1/00 @ 100 244,299
240,000 Minnesota State HEFA RV, Hamline
University, Series 3K, COLL by USG,
6.50%, 6/1/04, P/R 6/1/02 @ 100 254,095
250,000 Minnesota State HEFA RV, Hamline
University, Series 3K, COLL by USG,
6.60%, 6/1/07, P/R 6/1/02 @ 100 265,360
135,000 Minnesota State HEFA RV, Hamline
University, Series 3K, COLL by USG,
ETM, 6.20%, 6/1/01 140,196
130,000 Minnesota State HEFA RV, Hamline
University, Series 3K, COLL by USG,
ETM, 6.30%, 6/1/02 137,111
110,000 Minnesota State HEFA RV, Hamline
University, Series 3K, COLL by USG,
ETM, 6.10%, 6/1/00 112,580
270,000 Minnesota State HEFA RV, Hamline
University, Series 3K, COLL by USG,
6.40%, 6/1/03, P/R 6/1/02 @ 100 285,123
430,000 Minnesota State HEFA RV, Macalester
College, Series 3J, 6.10%, 3/1/05 450,047
1,250,000 Minnesota State HEFA RV, Series 2X,
Northwestern College of Chiro, 8.50%,
10/1/05, P/R 10/1/99 @ 100 1,265,525
1,000,000 Minnetonka, MN, ISD #276, GO Bonds,
Series A, 6.30%, 2/1/04, P/R 2/1/02 @
100 1,050,210
250,000 Moorhead, MN, EDA, MFHR Bonds, Eventide
Lutheran Home Project, Series A,
8.00%, 9/1/11, P/R 9/1/00 @ 102 266,813
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
ESCROWED IN TREASURIES (continued)
<TABLE>
<C> <S> <C>
500,000 Moorhead, MN, Public Utilities RV,
Series A, MBIA insured, 5.75%,
11/1/03, C/O 11/1/02 @ 100 $ 521,410
1,865,000 Moorhead, MN, Residential Mortgage RV,
7.10%, 8/1/11 2,101,872
300,000 Olmsted County, MN, HRA RV, COLL by USG,
7.00%, 2/1/08, P/R 2/1/01 @ 100 313,788
105,000 Olmsted County, MN, HRA RV, COLL by USG,
7.00%, 2/1/06, P/R 2/1/01 @ 100 109,826
290,000 Olmsted County, MN, HRA RV, COLL by USG,
7.00%, 2/1/07, P/R 2/1/01 @ 100 303,328
500,000 Puerto Rico Commonwealth, GO Bonds, FGIC
insured, 7.10%, 7/1/02, P/R 7/1/01 @
102 527,840
2,750,000 Rochester, MN, Health Care Facilites RV,
Mayo Foundation/ Mayo Medical Center,
Series A, 8.30%, 11/15/07, P/R
11/15/99 @ 100 2,798,509
2,000,000 St. Cloud, MN, GO Bonds, Inverse
Floaters, 8.75% V/R, 8/1/13, C/O
2/1/02 @ 100 2,140,000
1,000,000 St. Louis Park, MN, ISD #283, GO Bonds,
Series B, 5.90%, 2/1/03, C/O 2/1/01 @
100 1,027,280
2,595,000 St. Paul, MN, HRA, District Cooling RV,
Series C, 8.00%, 3/1/12, C/O 9/1/01 @
102 2,842,640
250,000 St. Paul, MN, HRA, Health Care RV,
Children's Hospital St. Paul, 7.15%,
12/1/05, P/R 12/1/99 @ 102 258,850
600,000 St. Paul, MN, ISD #625, GO Bonds, Series
B, 6.10%, 2/1/03, P/R 2/1/01 @ 100 618,894
625,000 St. Paul, MN, ISD #625, GO Bonds, Series
B, 6.20%, 2/1/04, P/R 2/1/01 @ 100 645,631
250,000 Waconia, MN, ISD #110, GO Bonds, FGIC
insured, 6.20%, 2/1/06 253,955
1,000,000 Washington County, MN, HRA, Jail
Facilities RV, 7.00%, 2/1/06, P/R
2/1/02 @ 100 1,068,450
940,000 Washington County, MN, HRA, Jail
Facilities RV, 7.00%, 2/1/07, P/R
2/1/02 @ 100 1,004,343
465,000 Washington County, MN, HRA, Lease RV,
ISD #833, South Washington, 7.00%,
12/1/06, P/R 12/1/02 @ 100 504,739
435,000 Washington County, MN, HRA, Lease RV,
ISD #833, South Washington, 7.00%,
12/1/05, P/R 12/1/02 @ 100 472,175
360,000 Washington County, MN, HRA, Lease RV,
ISD #833, South Washington, 6.60%,
12/1/02 386,230
380,000 Washington County, MN, HRA, Lease RV,
ISD #833, South Washington, 6.75%,
12/1/03, P/R 12/1/02 @ 100 409,484
410,000 Washington County, MN, HRA, Lease RV,
ISD #833, South Washington, 6.90%,
12/1/04, P/R 12/1/02 @ 100 443,747
</TABLE>
[LOGO]
See Notes to Schedules of Investments
36
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) JUNE 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
ESCROWED IN TREASURIES (continued)
<TABLE>
<C> <S> <C>
1,000,000 Wayzata, MN, ISD #284, GO Bonds, Series
B, 5.85%, 2/1/10 $ 1,051,780
1,000,000 West St. Paul, MN, ISD #197, GO Bonds,
Capital Appreciation School Building
Project, MBIA insured, 0.00% (5.60%
effective yield), 2/1/06, C/O 2/1/05 @
94.626 725,600
2,755,000 Western Minnesota, Municipal Power
Agency RV, Power RV, Series 1977A,
ETM, 6.38%, 1/1/16 3,027,140
---------------
55,097,313
---------------
GENERAL OBLIGATION (13.9%)
1,000,000 Alexandria, MN, ISD #206, GO Bonds,
Series A, 5.38%, 2/1/13 1,017,840
1,000,000 Chaska, MN, Go Bonds, Tax Increment,
AMBAC insured, 4.15%, 12/1/09 930,430
255,000 Coon Rapids, MN, GO Bonds, Special
Assessment, Series B, 5.80%, 2/1/04 265,641
2,325,000 Dakota County, MN, GO Bonds, Series B,
AMBAC insured, 6.00%, 2/1/02 2,357,758
400,000 Dakota County, MN, GO Bonds, Series B,
AMBAC insured, 6.20%, 2/1/04 406,092
1,040,000 Maple Grove, MN, GO Bonds, Series A,
5.20%, 2/1/13 1,043,380
3,250,000 Metropolitan Council, MN, GO Bonds,
Minneapolis-St. Paul Metropolitan
Area, Series A, 6.00%, 12/1/02 3,383,510
2,815,000 Minneapolis, MN, GO Bonds, Sales Tax
Revenue, 6.05%, 4/1/04 2,990,711
1,195,000 Minneapolis, MN, GO Bonds, Series D,
5.00%, 12/1/15 1,172,008
1,775,000 Minneapolis, MN, GO Bonds, Sports Arena
Project, 5.00%, 4/1/12 1,769,072
1,750,000 Minneapolis, MN, GO Bonds, Sports Arena
Project, 5.13%, 10/1/20 1,712,165
1,000,000 Minneapolis, MN, GO Bonds, Sports Arena
Project, 5.20%, 10/1/24 984,030
1,580,000 Minnetonka, MN, ISD #276, GO Bonds,
Series A, 6.10%, 2/1/02 1,652,649
1,400,000 Minnetonka, MN, ISD #276, GO Bonds,
Series B, 5.65%, 2/1/10 1,464,918
1,000,000 Ramsey County, MN, GO Bonds, Capital
Improvements, Series A, 6.25%, 2/1/06 1,091,310
2,000,000 Rosemount, MN, ISD #196, GO Bonds,
Capital Appreciation, Series A, 0.00%
(5.50% effective yield), 4/1/09 1,225,000
3,000,000 Rosemount, MN, ISD #196, GO Bonds,
Capital Appreciation, Series A, 0.00%
(5.55% effective yield), 4/1/10 1,734,660
2,000,000 Rosemount, MN, ISD #196, GO Bonds,
Capital Appreciation, Series A, 0.00%
(5.60% effective yield), 4/1/11 1,090,220
1,050,000 St. Paul, MN, ISD #625, GO Bonds, Series
B, 5.70%, 2/1/09 1,089,785
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
GENERAL OBLIGATION (continued)
<TABLE>
<C> <S> <C>
580,000 St. Paul, MN, ISD SD #625, GO Bonds,
Series B, 5.80%, 2/1/11 $ 610,067
235,000 Waconia, MN, GO Bonds, 6.00%, 6/1/06 244,811
825,000 West St. Paul, MN, ISD #197, GO Bonds,
Capital Appreciation School Building
Project, MBIA insured, 0.00% (5.40%
effective yield), 2/1/04 669,991
1,000,000 West St. Paul, MN, ISD #197, GO Bonds,
FSA insured, 4.75%, 2/1/12 961,900
225,000 Wright County, MN, GO Bonds, Series B,
5.80%, 2/1/04 234,767
---------------
30,102,715
---------------
GENERAL OBLIGATION - STATES, TERRITORIES (1.7%)
2,000,000 Commonwealth of Puerto Rico GO Bonds,
MBIA insured, 6.25%, 7/1/11 2,230,300
1,500,000 Minnesota State, GO Bonds, 5.25%, 8/1/15 1,504,185
---------------
3,734,485
---------------
HEALTH CARE REVENUE (16.2%)
2,195,000 Breckenridge, MN, Health Facilities RV,
Catholic Health Corp., MBIA insured,
5.00%, 11/15/05 2,239,888
1,000,000 Cuyuna Range Hospital District, MN,
Health Facilities Gross RV, Series A,
5.75%, 6/01/14 985,200
465,000 Duluth, MN, EDA, Health Care Facilities
RV, Benedictine Health System, St.
Mary, Series A, MBIA insured, 5.75%,
2/15/06 485,706
690,000 Duluth, MN, EDA, Health Care Facilities
RV, Benedictine Health System, St.
Mary, Series A, MBIA insured, 5.65%,
2/15/05 720,815
635,000 Duluth, MN, EDA, Health Care Facilities
RV, Benedictine Health System, St.
Mary, Series A, MBIA insured, 5.55%,
2/15/04 658,901
450,000 Duluth, MN, EDA, Hospital Facilities RV,
St. Luke's Hospital of Duluth, Series
B, Connie Lee insured, 6.20%, 5/1/01 465,584
500,000 Duluth, MN, EDA, Hospital Facilities RV,
St. Luke's Hospital of Duluth, Series
B, Connie Lee insured, 6.45%, 5/1/05 530,840
425,000 Duluth, MN, EDA, Hospital Facilities RV,
St. Luke's Hospital of Duluth, Series
B, Connie Lee insured, 6.10%, 5/1/00 434,091
500,000 Duluth, MN, EDA, Hospital Facilities RV,
St. Luke's Hospital of Duluth, Series
B, Connie Lee insured, 6.40%, 5/1/18 530,020
315,000 Edina, MN, Hospital System RV, Fairview
Hospital, Series A 7.00%, 7/1/99 315,032
1,000,000 Fergus Falls, MN, Health Care Facilities
RV, Lake Region Hospital Corp.
Project, Series A, 6.50%, 9/1/18 1,063,840
700,000 Glencoe, MN, Hospital RV, 6.63%, 4/1/11 741,321
</TABLE>
[LOGO]
See Notes to Schedules of Investments
37
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) JUNE 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
HEALTH CARE REVENUE (continued)
<TABLE>
<C> <S> <C>
400,000 Hastings, MN, Health Care Facilities RV,
Regina Medical Center, ACA Insured,
5.25%, 9/15/18 $ 382,940
205,000 Hastings, MN, Health Care Facilities RV,
Regina Medical Center, ACA Insured,
4.80%, 9/15/10 194,527
315,000 Mankato, MN, Hospital Facilities RV,
Immanuel St. Joseph's Hospital, Series
C, 6.10%, 8/1/05 333,771
390,000 Mankato, MN, Hospital Facilities RV,
Immanuel St. Joseph's Hospital, Series
C, 6.15%, 8/1/06 412,636
2,000,000 Minnesota Agriculture & Economic
Development Board, Health Care RV,
Fairview Hospital, Series A, MBIA
insured, 5.75%, 11/15/26 2,050,920
2,500,000 Minnesota Agriculture & Economic
Development Board, Health Care RV,
Fairview Hospital, Series A, MBIA
insured, 5.50%, 11/15/17 2,526,424
4,500,000 Minnesota Agriculture & Economic
Development RV, Benedictine Health,
Series A, MBIA insured, 5.00%, 2/15/19 4,301,864
500,000 Minnesota Agriculture & Economic
Development RV, Benedictine Health,
Series A, MBIA insured, 4.75%, 2/15/16 466,425
1,000,000 Minnesota Agriculture & Economic
Development RV, Benedictine Health,
Series A, MBIA insured, 5.25%, 2/15/11 1,014,290
505,000 Monticello-Big Lake, MN, Community
Hospital District Gross Revenue,
Health Care RV, Series A, 5.20%,
12/1/09 496,415
725,000 Monticello-Big Lake, MN, Community
Hospital District Gross Revenue,
Health Care RV, Series A, 5.40%,
12/1/11 712,429
500,000 Monticello-Big Lake, MN, Community
Hospital District Gross Revenue,
Health Care RV, Series A, 5.30%,
12/1/10 491,040
2,285,000 Rochester, MN, Health Care Facilites RV,
Mayo Foundation/ Mayo Medical Center,
Series I, 5.80%, 11/15/07 2,443,351
1,185,000 Rochester, MN, Health Care Facilites RV,
Mayo Foundation/ Mayo Medical Center,
Series I, 5.88%, 11/15/08 1,272,323
1,650,000 Rochester, MN, Health Care Facilites RV,
Mayo Foundation/ Mayo Medical Center,
Series I, 5.90%, 11/15/09 1,776,588
2,000,000 Rochester, MN, Health Care Facilities
RV, Mayo Foundation/ Mayo Medical
Center, Series I, 5.90%, 11/15/10 2,148,300
575,000 Roseau, MN, Roseau Area Hospital
District, Health Facilities RV, 5.50%,
10/1/18 553,162
385,000 Roseau, MN, Roseau Area Hospital
District, Health Facilities RV, 5.75%,
10/1/23 371,314
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
HEALTH CARE REVENUE (continued)
<TABLE>
<C> <S> <C>
500,000 St. Louis Park, MN, Hospital RV,
Methodist Hospital, Series A, AMBAC
insured, 7.00%, 7/1/00 $ 516,920
1,000,000 St. Paul, MN, HRA, Health Care
Facilities RV, Regions Hospital
Project, 5.25%, 5/15/18 939,510
2,000,000 St. Paul, MN, HRA, Health Care
Facilities RV, Regions Hospital
Project, 5.30%, 5/15/28 1,847,400
610,000 St. Paul, MN, HRA, Health Care
Facilities RV, Regions Hospital
Project, 5.00%, 5/15/11 585,624
---------------
35,009,411
---------------
INDUSTRIAL DEVELOPMENT REVENUE (1.8%)
110,000 Becker, MN, PCR Bonds, Northern States
Power Co. Project, 7.25%, 12/1/05 110,274
1,030,000 Red Wing, MN, PCR Bonds, Northern States
Power Co., MBIA-IBC insured, 5.70%,
5/1/03 1,037,416
2,100,000 Seaway Port Authority Duluth, MN,
Industrial Development Dock & Wharf
(Cargill, Inc.) RV, Series B, 6.80%,
5/1/12 2,233,686
520,000 St. Louis Park, MN, Commercial
Development RV, G & N LP Project,
7.00%, 6/1/06 536,011
---------------
3,917,387
---------------
MULTI-FAMILY HOUSING REVENUE (2.3%)
1,025,000 Edina, MN, Housing Development RV, MFHR
Bonds, Edina Park Place Project,
Series A, FHA insured, 7.50%, 12/1/09 1,051,210
15,000 Minneapolis, MN, Community Development
Agency & St. Paul Housing &
Redevelopment Authority RV, Joint
Housing Program, 9.50%, 12/1/00 15,057
1,225,000 Minneapolis, MN, MFHR Bonds, Churchill
Project, FHA insured, 6.95%, 10/1/05 1,299,517
835,000 Minnesota State, HFA, Housing
Development RV, 6.25%, 2/1/20 844,377
635,000 Minnesota State, HFA, Rental Housing RV,
Series D, MBIA insured, 5.90%, 8/1/15 660,121
175,000 St. Anthony, MN, MFHR Bonds, Autumn
Woods Project, Asset Guaranty
Insurance Co., LOC, 6.60%, 7/1/04 187,103
180,000 St. Anthony, MN, MFHR Bonds, Autumn
Woods Project, Asset Guaranty
Insurance Co., LOC, 6.40%, 7/1/02 189,248
190,000 St. Anthony, MN, MFHR Bonds, Autumn
Woods Project, Asset Guaranty
Insurance Co., LOC, 6.50%, 7/1/03 202,491
160,000 St. Anthony, MN, MFHR Bonds, Autumn
Woods Project, Asset Guaranty
Insurance Co., LOC, 6.10%, 7/1/00 163,034
</TABLE>
[LOGO]
See Notes to Schedules of Investments
38
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) JUNE 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
MULTI-FAMILY HOUSING REVENUE (continued)
<TABLE>
<C> <S> <C>
150,000 St. Anthony, MN, MFHR Bonds, Autumn
Woods Project, Asset Guaranty
Insurance Co., LOC, 6.00%, 7/1/99 $ 150,008
170,000 St. Anthony, MN, MFHR Bonds, Autumn
Woods Project, Asset Guaranty
Insurance Co., LOC, 6.25%, 7/1/01 176,132
50,000 St. Paul, MN, HRA RV, Amherst H. Wilder
Foundation, 6.50%, 6/1/01 50,491
---------------
4,988,789
---------------
NURSING HOME REVENUE (2.2%)
500,000 Minneapolis, MN, Health Care Facilities
RV, Ebenezer Society Project, Series
A, 7.20%, 7/1/23 515,170
825,000 New Hope, MN, Housing & Health Care
Facilities RV, Minnesota Masonic Home
North Ridge, 5.55%, 3/1/11 810,356
670,000 New Hope, MN, Housing & Health Care
Facilities RV, Minnesota Masonic Home
North Ridge, 5.60%, 3/1/12 657,444
500,000 Pine River, MN, Health Facilities RV,
Evan Lutheran Good Samaritan Project,
6.40%, 8/1/15 535,465
135,000 Spring Park, MN, Health Care Facilities
RV, Twin Birch Health Care Center
Project, 8.10%, 8/1/02 145,637
125,000 Spring Park, MN, Health Care Facilities
RV, Twin Birch Health Care Center
Project, 8.00%, 8/1/01 132,654
115,000 Spring Park, MN, Health Care Facilities
RV, Twin Birch Health Care Center
Project, 8.00%, 8/1/00 119,066
105,000 Spring Park, MN, Health Care Facilities
RV, Twin Birch Health Care Center
Project, 7.75%, 8/1/99 105,306
145,000 Spring Park, MN, Health Care Facilities
RV, Twin Birch Health Care Center
Project, 8.10%, 8/1/03 155,908
1,500,000 White Bear Lake, MN, First Mortgage,
Nursing Home RV, White Bear Lake Care
Center, 8.25%, 11/1/12 1,638,179
---------------
4,815,185
---------------
OTHER REVENUE (4.3%)
750,000 Anoka County, MN, Resource Recovery RV,
Northern State Power Co., 7.00%,
12/1/03 774,990
285,000 Duluth, MN, Gross RV, Spirit Mountain
Recreation Area, 6.00%, 2/1/00 287,981
300,000 Duluth, MN, Gross RV, Spirit Mountain
Recreation Area, 6.15%, 2/1/01 305,151
300,000 Duluth, MN, Gross RV, Spirit Mountain
Recreation Area, 6.30%, 2/1/02 306,498
400,000 Duluth, MN, Gross RV, Spirit Mountain
Recreation Area, 6.50%, 2/1/04 409,124
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
OTHER REVENUE (continued)
<TABLE>
<C> <S> <C>
425,000 Duluth, MN, Gross RV, Spirit Mountain
Recreation Area, 6.60%, 2/1/05 $ 433,067
455,000 Duluth, MN, Gross RV, Spirit Mountain
Recreation Area, 6.70%, 2/1/06 463,731
3,245,000 Minneapolis, MN, Temporary Parking Ramp,
Transportation RV, Series A, 4.75%,
6/1/00 3,245,130
1,380,000 Minnesota State Iron Range Resources &
Rehabilitation Gross RV, Giants Ridge
Recreational Area, 7.25%, 10/1/11 1,456,713
180,000 St. Cloud, MN, COP, Municipal Athletic
Complex, 5.20%, 12/1/05 182,857
185,000 St. Cloud, MN, COP, Municipal Athletic
Complex, 5.30%, 12/1/06 187,886
100,000 St. Cloud, MN, COP, Municipal Athletic
Complex, 5.38%, 12/1/07 101,403
750,000 St. Paul, MN, HRA, District Cooling RV,
Series J, Credit Local de France, LOC,
5.13%, 3/1/12 734,220
400,000 St. Paul, MN, HRA, District Heating RV,
Cogeneration Facilities Project,
8.30%, 11/1/04 410,116
---------------
9,298,867
---------------
SINGLE FAMILY HOUSING REVENUE (1.6%)
535,000 Coon Rapids, MN, SFM RV, 6.15%, 9/1/09 557,256
645,000 Minnesota State, HFA, SFM RV, Series A,
5.95%, 1/1/17 675,005
140,000 Minnesota State, HFA, SFM RV, Series B,
FHA/VA/Private Mortgages, LOC, 7.05%,
7/1/02 142,813
70,000 Minnesota State, HFA, SFM RV, Series B,
FHA/VA/Private Mortgages, LOC, 7.30%,
7/1/10 71,407
130,000 Minnesota State, HFA, SFM RV, Series B,
FHA/VA/Private Mortgages, LOC, 7.05%,
1/1/02 132,612
180,000 Minnesota State, HFA, SFM RV, Series D2,
remarketed 3/24/93, 5.60%, 1/1/06 187,234
100,000 Minnesota State, HFA, SFM RV, Series E,
FHA/VA Mortgages, LOC, 7.50%, 2/1/01 102,011
300,000 Minnesota State, HFA, SFM RV, Series E,
FHA/VA Mortgages, LOC, 7.30%, 8/1/99 306,030
100,000 Minnesota State, HFA, SFM RV, Series E,
FHA/VA Mortgages, LOC, 7.40%, 2/1/00 102,010
170,000 Minnesota State, HFA, SFM RV, Series G,
6.45%, 1/1/05 170,014
675,000 St. Paul, MN, HRA, SFM RV, FNMA Mortgage
Backed Securities Program, FNMA
insured, 6.25%, 9/1/14 712,314
265,000 Vadnais Heights, MN, SFM RV, 5.25%,
11/1/02 270,623
---------------
3,429,329
---------------
</TABLE>
[LOGO]
See Notes to Schedules of Investments
39
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) JUNE 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
<TABLE>
<C> <S> <C>
TAX INCREMENT REVENUE (5.1%)
3,000,000 Bloomington, MN, Port Authority Tax RV,
Mall of America Project, Series A, FSA
insured, 5.35%, 2/1/13 $ 3,085,710
1,815,000 Bloomington, MN, Port Authority Tax RV,
Mall of America Project, Series A, FSA
insured, 5.45%, 2/1/09 1,841,717
2,000,000 Bloomington, MN, Port Authority Tax RV,
Mall of America Project, Series A, FSA
insured, 5.25%, 2/1/03 2,052,080
5,000,000 Minneapolis, MN, Community Development
Agency, Tax Increment RV, Capital
Appreciation, MBIA insured, 0.00%
(7.13% effective yield), 9/1/04 3,954,449
---------------
10,933,956
---------------
TOTAL MUNICIPAL BONDS (COST $208,637,611) 213,960,538
---------------
MUNICIPAL DEMAND NOTES (1.1%)
2,000,000 Mankato, MN, GO Bonds, Series E, First
Bank, LOC, 3.55% V/R, 2/1/18 2,000,000
400,000 St. Paul, MN, HRA, District Heating RV,
Series A, Credit Local De France, LOC,
3.75% V/R, 12/1/12 400,000
---------------
TOTAL MUNICIPAL DEMAND NOTES (COST $2,400,000) 2,400,000
---------------
SHORT-TERM HOLDINGS (0.0%)
77,823 Norwest Municipal Money Market Fund
(cost $77,823) 77,823
---------------
TOTAL INVESTMENTS (100.0%) (COST $211,115,434) $ 216,438,361
---------------
---------------
- -----------------------------------------------------------------
MINNESOTA TAX-FREE FUND
- -----------------------------------------------------------------
MUNICIPAL BONDS (97.7%)
AIRPORT REVENUE (3.3%)
2,000,000 Minneapolis & St. Paul, MN, Airport RV,
Series A, AMBAC insured, 5.00%, 1/1/22 $ 1,910,300
1,000,000 Minneapolis & St. Paul, MN, Airport RV,
Series A, AMBAC insured, 5.00%, 1/1/30 941,220
---------------
2,851,520
---------------
CERTIFICATES OF PARTICIPATION & LEASE REVENUE (2.9%)
1,290,000 Lino Lakes, MN, EDA, Lease RV, Series A,
5.35%, 2/1/19 1,246,656
205,000 Savage, MN, EDA RV, Lease RV, 5.40%,
2/1/14 204,069
210,000 Savage, MN, EDA RV, Lease RV, 5.50%,
2/1/16 210,139
220,000 Savage, MN, EDA RV, Lease RV, 5.45%,
2/1/15 219,646
115,000 St. Cloud, MN, COP, 5.40%, 12/1/08 116,136
120,000 St. Cloud, MN, COP, 5.50%, 12/1/09 121,156
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
CERTIFICATES OF PARTICIPATION & LEASE REVENUE (continued)
<TABLE>
<C> <S> <C>
400,000 St. Cloud, MN, COP, 5.90%, 12/1/17 $ 404,656
---------------
2,522,458
---------------
EDUCATION FACILITIES REVENUE (16.2%)
500,000 Minnesota State HEFA RV, University of
St. Thomas, Series 4M, 5.35%, 4/1/17 496,280
1,510,000 Minnesota State HEFA RV, Augsburg
College, Series 4Y, 5.20%, 10/1/16 1,433,987
1,345,000 Minnesota State HEFA RV, College at St.
Benedict, Series 4T, 5.35%, 3/1/20 1,278,127
135,000 Minnesota State HEFA RV, College of St.
Benedict, Series 3W, 6.00%, 3/1/07 140,350
600,000 Minnesota State HEFA RV, Northwest
College, Series 4Z, 5.20%, 10/1/13 581,173
2,250,000 Minnesota State HEFA RV, St. Johns
University, Series 4L, 5.40%, 10/1/22 2,210,334
5,500,000 University of Minnesota, Educational
Facilities RV, Series A, 5.50%, 7/1/21 5,659,994
2,000,000 University of Minnesota, Educational
Facilities RV, Series A, 5.75%, 7/1/17 2,121,560
---------------
13,921,805
---------------
ELECTRIC REVENUE (9.9%)
500,000 North Branch, MN, Electric Systems RV,
5.40%, 5/1/18 482,885
1,135,000 Northern Minnesota Municipal Power
Agency, Electric System RV, Series B,
AMBAC insured, 5.50%, 1/1/18 1,142,752
1,000,000 Northern Minnesota Municipal Power
Agency, Electric System RV, FSA
insured, 5.25%, 1/1/17 989,280
2,220,000 Northern Minnesota Municipal Power
Agency, Electric System RV, Series B,
4.75%, 1/1/20 2,048,859
1,000,000 Puerto Rico, Electric Power Authority
RV, Series X, 5.50%, 7/1/25 1,001,770
6,690,000 Southern Minnesota Municipal Power
Agency, Power Supply System RV, Series
A, MBIA insured, 0.00% (6.70%
effective yield), 1/1/24 1,722,875
3,000,000 Southern Minnesota Municipal Power
Agency, Power Supply System RV, MBIA
insured, 0.00% (6.67% effective
yield), 1/1/21 916,770
200,000 Western Minnesota Municipal Power
Agency, Power RV, Series A, 5.50%,
1/1/15 200,098
---------------
8,505,289
---------------
ESCROWED IN TREASURIES (6.8%)
200,000 Bemidji, MN, Hospital Facilities, First
Mortgage RV, North Country Health
Services Project, Series 1991 A,
7.00%, 9/1/11, P/R 9/1/01 @ 102 215,374
210,000 Bloomington, MN, Tax Increment GO Bonds,
9.75%, 2/1/07 P/R 2/1/05 @ 100 262,494
</TABLE>
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See Notes to Schedules of Investments
40
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) JUNE 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
ESCROWED IN TREASURIES (continued)
<TABLE>
<C> <S> <C>
2,530,000 Burnsville, MN, Hospital System RV,
Fairview Community Hospitals, ETM,
0.00% (5.90% effective yield), 5/1/12 $ 1,160,534
500,000 Chaska, MN, ISD #112, GO Bonds, State
Credit Enhancement Program, Series B,
6.00%, 2/1/13, C/O 2/1/06 @ 100 535,845
1,000,000 Edina, MN, Hospital System RV, Fairview
Hospital, Series A, ETM, 7.13%,
7/1/06, P/R 7/1/99 @ 102 1,020,100
800,000 Mankato, MN, Hospital Facilities RV,
Immanuel St. Joseph's Hospital, Series
A, 6.30%, 8/1/22, P/R 8/1/02 @ 102 861,344
600,000 Minneapolis & St. Paul, MN, HRA Health
Care System, HealthOne Obligated Group
Project, Series A, MBIA insured,
7.40%, 8/15/11, P/R 8/15/00 @ 102 636,336
365,000 Minnesota HEFA RV, College of St.
Benedict, Series 3W, 6.00%, 3/1/07 P/R
3/1/04 @ 100 386,462
750,000 Moorhead, MN, EDA, MFHR Bonds, Eventide
Lutheran Home Project, Series A,
8.00%, 9/1/11, P/R 9/1/00 @ 102 800,438
---------------
5,878,927
---------------
GENERAL OBLIGATION (8.5%)
100,000 Bloomington, MN, Tax Increment GO Bonds,
9.70%, 2/1/04 121,002
1,150,000 Chaska, MN, EDA School Facilities Lease,
GO Bonds, ISD #112, Series A, 5.35%,
12/1/16 1,131,405
1,900,000 Minneapolis, MN, GO Bonds, Series D,
5.00%, 12/1/15 1,863,444
2,650,000 Minneapolis, MN, GO Bonds, Sports Arena
Project, 5.20%, 10/1/24 2,607,679
1,400,000 St. Michael, MN, GO Bonds, MBIA insured,
5.15%, 2/1/21 1,365,042
245,000 Waconia, MN, GO Bonds, 6.00%, 6/1/07 255,229
---------------
7,343,801
---------------
GENERAL OBLIGATION--SCHOOL DISTRICTS (6.5%)
250,000 Bemidji, MN, ISD #31, GO Bonds, MBIA
insured, 6.30%, 2/1/07, P/R 2/1/00 @
100 254,308
1,000,000 Minneapolis, MN, Special SD #001, UTGO
Bonds, 5.00%, 2/1/13 983,990
1,650,000 Minnetonka, MN, ISD #276, GO Bonds,
State Credit Enhancement Program,
Series B, 5.75%, 2/1/22 1,688,610
500,000 Park Rapids, MN, ISD #309, GO Bonds,
4.75%, 2/1/17 463,640
2,200,000 Wayzata, MN, ISD #284, GO Bonds, Series
A, 5.35%, 2/1/15 2,216,653
---------------
5,607,201
---------------
GENERAL OBLIGATION--STATES, TERRITORIES (2.0%)
200,000 Kenyon, MN, GO Bonds, 4.00%, 2/1/00 200,598
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
GENERAL OBLIGATION--STATES, TERRITORIES (continued)
<TABLE>
<C> <S> <C>
1,500,000 Minnesota State, GO Bonds, 5.25%, 8/1/15 $ 1,504,185
---------------
1,704,783
---------------
HEALTH CARE REVENUE (23.7%)
1,560,000 Bemidji, MN, Hospital Facilities, First
Mortgage RV, North Country Health
Services Project, 5.63%, 9/1/21 1,550,095
1,000,000 Brainerd, MN, Health Care Facilities RV,
Benedictine Health-St. Joseph's Health
Center, Series 1993 E, Connie Lee
insured, 6.00%, 2/15/20 1,038,760
1,000,000 Cuyuna Range Hospital District, MN,
Health Facilities Gross RV Bonds,
Series A, 6.00%, 6/1/19 968,250
500,000 Duluth, MN, EDA, Hospital Facilities RV,
St. Luke's Hospital of Duluth, Series
B, Connie Lee insured, 6.40%, 5/1/18 530,020
500,000 Glencoe, MN, Health Care RV, 6.40%,
12/1/15 517,460
690,000 Glencoe, MN, Hospital RV, 6.63%, 4/1/11 730,731
1,000,000 Hibbing, MN, Health Care Facilities RV,
Duluth Clinic Ltd., FSA insured,
5.50%, 11/1/16, P/R 11/1/13 @ 100 1,033,560
500,000 Minneapolis & St. Paul, MN, HRA Health
Care System, Group Health Plan, Inc.
Project, 6.75%, 12/1/13 530,415
1,000,000 Minneapolis & St. Paul, MN, HRA Health
Care System, Children's Health Care
RV, Series A, FSA insured, 5.70%,
8/15/16 1,020,180
2,500,000 Minnesota Agriculture & Economic
Development Board, Health Care RV,
Fairview Hospital, Series A, MBIA
insured, 5.50%, 11/15/17 2,526,425
3,800,000 Minnesota Agriculture & Economic
Development Board, Health Care RV,
Fairview Hospital, Series A, MBIA
insured, 5.75%, 11/15/26 3,896,747
500,000 Minnesota Agriculture & Economic
Development RV, Benedictine Health,
Series A, MBIA insured, 4.75%, 2/15/16 466,425
2,545,000 Minnesota Agriculture & Economic
Development RV, Benedictine Health,
Series A, MBIA insured, 5.00%, 2/15/23 2,405,000
825,000 Monticello-Big Lake, MN, Community
Hospital District Gross Revenue,
Health Care RV, Series A, 5.45%,
12/1/12 805,646
115,000 Red Wing, MN, Health Care Facilities RV,
River Region Obligated Group, Series
1993 B, 6.35%, 9/1/07 121,366
1,000,000 Rochester, MN, Health Care Facilities
RV, Mayo Medical Center, Series F,
6.25%, 11/15/21 1,066,020
</TABLE>
[LOGO]
See Notes to Schedules of Investments
41
<PAGE>
SCHEDULES OF INVESTMENTS (CONTINUED) JUNE 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
HEALTH CARE REVENUE (continued)
<TABLE>
<C> <S> <C>
1,260,000 Roseau, MN, Roseau Area Hospital
District, Health Facilities RV, 5.75%,
10/1/23 $ 1,215,208
---------------
20,422,308
---------------
INDUSTRIAL DEVELOPMENT REVENUE (0.6%)
500,000 St. Paul, MN, HRA, District Cooling RV,
Series J, Credit Local de France, LOC,
5.35%, 3/1/18 488,710
---------------
MULTI-FAMILY HOUSING REVENUE (5.9%)
1,395,000 Dakota County, MN, HRA, MFHR Bonds, GNMA
COLL Credit Support, 7.38%, 12/01/29 1,530,649
550,000 Minnesota State, HFA, Housing
Development RV, Series A, 6.85%,
2/1/07 578,925
570,000 Minnesota State, HFA, Housing
Development RV, 6.25%, 2/1/20 576,402
405,000 Minnesota State, HFA, Rental Housing RV,
Series D, MBIA insured, 5.90%, 8/1/15 421,022
470,000 Minnesota State, HFA, Rental Housing RV,
Series B, 6.25%, 8/1/22 475,607
1,500,000 Minnesota State, HFA, Rental Housing RV,
Series A, 5.38%, 8/1/28 1,508,010
---------------
5,090,615
---------------
NURSING HOME REVENUE (4.6%)
250,000 Duluth, MN, EDA, Health Care Facilities
RV, BSM Properties, Inc. Project,
Series A, 5.63%, 12/1/18 239,180
750,000 Duluth, MN, EDA, Health Care Facilities
RV, BSM Properties, Inc. Project,
Series A, 5.88%, 12/1/28 721,568
500,000 Minneapolis, MN, Health Care Facilities
RV, Ebenezer Society Project, Series
A, 7.20%, 7/1/23 515,170
1,000,000 Minneapolis, MN, RV, Walker Methodist
Senior Services, Series A, 5.88%,
11/15/18 976,770
1,000,000 New Hope, MN, Housing & Health Care
Facilities RV, Minnesota Masonic Home
North Ridge, 5.90%, 3/1/19 976,050
500,000 Waconia, MN, HRA RV, The Evangelical
Lutheran Project, Series A, 5.85%,
6/1/06 520,770
---------------
3,949,508
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA TAX-FREE FUND (continued)
- -----------------------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
<TABLE>
<C> <S> <C>
SINGLE FAMILY HOUSING REVENUE (3.7%)
940,000 Minnesota State, HFA, SFM RV, remarketed
8/12/92, 6.25%, 1/1/15 $ 975,335
550,000 Minnesota State, HFA, SFM RV, Series A,
5.95%, 1/1/17 575,586
670,000 Minnesota State, HFA, SFM RV, Series Q,
6.25%, 7/1/14 670,047
655,000 St. Paul, MN, HRA, SFM RV, FNMA Mortgage
Backed Securities Program, FNMA
insured, 6.25%, 9/1/14 691,208
260,000 Vadnais Heights, MN, SFM RV, 6.00%,
11/1/09 271,791
---------------
3,183,967
---------------
SPORTS REVENUE (1.9%)
250,000 Duluth, MN, Gross RV, Spirit Mountain
Recreation Area, Series 1992, 6.40%,
2/1/03 255,560
460,000 Eagan, MN, Ice Arena Gross RV, Series B,
5.50%, 4/1/19 448,601
920,000 Minnesota State Iron Range Resources &
Rehabilitation Gross RV, Giants Ridge
Recreational Area, 7.25%, 10/1/11 971,143
---------------
1,675,304
---------------
WATER & SEWER REVENUE (1.2%)
1,000,000 Minnesota Public Facilities Authority,
Water PCR Bonds, Series A, 6.50%,
3/1/14, P/R 3/1/02 @ 100 1,075,810
---------------
TOTAL MUNICIPAL BONDS (COST $83,471,045) 84,222,006
---------------
SHORT-TERM HOLDINGS (2.3%)
1,100,000 Cottage Grove, MN, Environmental Control
RV, Minnesota Mining & Manufacturing,
3.78% V/R, 8/1/12 1,100,000
700,000 Mankato, MN, GO Bonds, Series E, First
Bank, LOC, 3.55% V/R, 2/1/18 700,000
177,939 Norwest Municipal Money Market Fund 177,939
---------------
TOTAL SHORT-TERM HOLDINGS (COST $1,977,939) 1,977,939
---------------
TOTAL INVESTMENTS (100.0%) (COST $85,448,984) $ 86,199,945
---------------
---------------
</TABLE>
[LOGO]
See Notes to Schedules of Investments
42
<PAGE>
NOTES TO SCHEDULES OF INVESTMENTS JUNE 30, 1999
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ABBREVIATIONS
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ACA American Capital Access Corporation
AMBAC American Municipal Bond Assurance Corporation
C/O Crossover refunding
COLL Collateralized
Connie College Construction Loan Insurance Association
Lee
COP Certificate of Participation
DOT Department of Transportation
EDA Economic Development Authority
ETM Escrowed to Maturity
FGIC Financial Guaranty Insurance Company
FHA Federal Housing Authority
FHLB Federal Home Loan Bank
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
FSA Financial Security Assurance, Inc.
GNMA Government National Mortgage Association
GO General Obligation
GTD Guaranteed
HEFA Higher Education Facilities Authority
HEHFA Higher Education & Health Facilities Authority
HFA Housing Finance Authority
HRA Housing & Redevelopment Authority
HUD Housing & Urban Development
IDA Industrial Development Authority
IDR Industrial Development Revenue
ISD Independent School District
LOC Letter of Credit
MBIA Municipal Bond Insurance Association
MBIA-IBC MBIA Insured Bond Certificates
MFHR Multi Family Housing Revenue
PCR Pollution Control Revenue
PFA Public Finance Authority
P/R Pre-refunded
RIBS Residual Interest Bond Series
RV Revenue Bonds
SFM Single Family Mortgage
USG U.S. Government Securities
UTGO Unlimited Tax General Obligation
VA Veterans' Administration
V/R Variable Rate - These securities are deemed to have a maturity
remaining until the next adjustment of the interest rate or the
longer of the demand period or readjustment. The interest rate shown
reflects the rate in effect on June 30, 1999.
WI When-Issued Security
</TABLE>
[LOGO]
43
<PAGE>
Norwest Advantage Funds
510 Marquette Avenue
Minneapolis, MN 55479-0040
Shareholder Services
Minneapolis/St. Paul 1-612-667-8833
Elsewhere 1-800-338-1348
Norwest Investment Management, Inc.
Investment Adviser
Norwest Bank Minnesota, N.A.
Transfer Agent
Custodian
Forum Financial Services, Inc.
Manager and Distributor
- -C- 1999 Norwest Advantage Funds
NW TF SAR (7/99)
This report is for distribution only to shareholders and may
be distributed to others only if preceded or accompanied
by current prospectuses of the Norwest Advantage Funds.
[LOGO]
