SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-17F-2
Certificate of Accounting of Securities and Similar
Investments in the Custody of
Management Investment Companies
Pursuant to Rule 17f-2 (17 CFR 270.17f-2)
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1. Investment Company Act File Number: Date examination completed:
811-4881 MAY 31, 1999
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2. State identification Number:
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AL N/A AK 9904218 AZ S0035365QUAL AR 91M033423 CA 5057965 CO IC9305936
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CT SI25881 DE N/A DC EXEMPT FL EXEMPT GA 56930783 HI N/A
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ID 46181 IL R9840128 IN 9103541IC IA I26950 KS 94S0000039 KY M33347
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LA 60364 ME MFR9913894 MD SM941635 MA N/A MI 26539 MN R299251
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MS MF9307034 MO 000001020 MT 32165 NE N/A NV N/A NH N/A
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NJ EXEMPT NM 998093 NY S255803 NC 1336 ND 13183 OH 16782
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OK SE2005441 OR 960586 PA 8803053MF RI N/A SC MF8176 SD 8184
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TN RM991891 TX M43019 UT 29130006 VT 7/26/93 03 VA 1654 WA C36719
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WV MF17656 WI 22922003 WY 18986 PUERTO RICO NOT FILED
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Other (specify):
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3. Exact name of investment company as specified in registration statement:
NORWEST ADVANTAGE FUNDS
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4. Name under which business is conducted, if different from above:
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5. Address of principal place of business (number, street, city, state, zip code):
TWO PORTLAND SQUARE, PORTLAND, ME 04101
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INSTRUCTIONS
This Form must be completed by investment companies that have custody of
securities or similar investments.
INVESTMENT COMPANY
1. All items must be completed by the investment company.
2. Give this Form to the independent public accountant who, in compliance with
Rule 17f-2 under the Act and applicable state law, examines securities and
similar investments in the custody of the investment company. Accountant 3.
Submit this Form to the Securities and Exchange Commission and appropriate state
securities administrators when filing the certificate of accounting required by
Rule 17f-2 under the Act and applicable state law. File the original and one
copy with the Securities and Exchange Commission's principal office in
Washington, D.C., one copy with the regional office for the region in which the
investment company's principal business operations are conducted, and one copy
with the appropriate state administrator(s), if applicable.
THIS FORM MUST BE GIVEN TO YOUR INDEPENDENT PUBLIC ACCOUNTANT
Note: The estimated average burden hours are made solely for purposes of the
Paperwork Reduction Act, and are not derived from a comprehensive or even a
representative survey or study of the costs of SEC rules and forms. Direct any
comments concerning the accuracy of the estimated average burden hours for
compliance with SEC rules and forms to Kenneth A. Fogash, Deputy Executive
Director, U.S. Securities and Exchange Commission, 450 Fifth St., N.W.,
Washington, D.C. 20549 and Gary Waxman, Clearance Officer, Office of Management
and Budget, Room 3208 New Executive Office Building, Washington, D.C. 20503
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Board of Trustees of Norwest Advantage Funds
and Securities and Exchange Commission
July 2, 1999
INDEPENDENT AUDITORS' REPORT
To the Board of Trustees of
Norwest Advantage Funds
and
Securities and Exchange Commission:
We have examined management's assertion, included in the accompanying Management
Statement Regarding Compliance with Certain Provisions of the Investment Company
Act of 1940, that Cash Investment Fund, U.S. Government Fund, Treasury Fund,
Treasury Plus Fund, Ready Cash Investment Fund, Municipal Money Market Fund,
Stable Income Fund, Limited Term Government Income Fund, Intermediate Government
Income Fund, Diversified Bond Fund, Diversified Small Cap Fund, Income Fund,
Total Return Bond Fund, Limited Term Tax-Free Fund, Tax-Free Income Fund,
Colorado Tax-Free Fund, Minnesota Intermediate Tax-Free Fund, Minnesota Tax-Free
Fund, Strategic Income Fund, Moderate Balanced Fund, Growth Balanced Fund,
Aggressive Balanced-Equity Fund, Index Fund, Income Equity Fund, ValuGrowth
Stock Fund, Diversified Equity Fund, Growth Equity Fund, Large Company Growth
Fund, Small Company Stock Fund, Small Company Growth Fund, Small Cap
Opportunities Fund, International Fund, WealthBuilder II Growth Portfolio,
WealthBuilder II Growth & Income Portfolio, WealthBuilder II Growth Balanced
Portfolio, Performa Strategic Value Bond Fund, Performa Disciplined Growth Fund,
Performa Small Cap Value Fund, and Performa Global Growth Fund of Norwest
Advantage Funds (the Funds), complied with the provisions of subsections (b) and
(c) of Rule 17f-2 under the Investment Company Act of 1940 as of May 31, 1999.
Management is responsible for the Funds' compliance with those provisions. Our
responsibility is to express an opinion on management's assertion about the
Funds' compliance based on our examination.
Our examination was made in accordance with standards established by the
American Institute of Certified Public Accountants and, accordingly, included
examining, on a test basis, evidence about the Funds' compliance with those
requirements and performing such other procedures as we considered necessary in
the circumstances. Included among our procedures were the following tests
performed as of May 31, 1999, with respect to agreement of security purchases
and sales for the period from December 31, 1998 to May 31, 1999:
(1) Inspection of documentation of all securities located in the vault, if any,
of Norwest Bank Minneapolis, N.A., the Custodian;
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(2) Confirmation of securities held in book entry form by Participant Trust
Company, Bankers Trust Company, Morgan Stanley Trust Company, Depository
Trust Company, Bank of New York, and the Federal Reserve Bank and
examination of selected security position reconciliations;
(3) Inspection of documentation of other securities held in safekeeping by the
Custodian but not included in (1) or (2) above and examination of selected
security position reconciliations;
(4) Confirmation or inspection of documentation of all securities purchased but
not received, hypothecated, pledged, placed in escrow, or out for transfer
with brokers, pledges and/or transfer agents; and
(5) Reconciliation of all such securities to the books and records of the Funds
and the Custodian.
We believe that our examination provides a reasonable basis for our opinion. Our
examination does not provide a legal determination on the Funds' compliance with
the specified requirements.
In our opinion, management's assertion that Norwest Advantage Funds was in
compliance with the requirements of subsections (b) and (c) of Rule 17f-2 of the
Investment Company Act of 1940 as of May 31, 1999 is fairly stated, in all
material respects.
This report is intended solely for the information and use of management of
Norwest Advantage Funds and the Securities and Exchange Commission, and is not
intended to be and should not be used by anyone other than these specified
parties.
[KPMG LLP Computerized Signature]
July 2, 1999
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[Logo] NORWEST BANKS Norwest Bank Minnesota, N.A.
Norwest Center
Sixth and Marquette
Minneapolis, Minnesota 55479-0054
612-667-7906
July 2, 1999
KPMG Peat Marwick LLP
99 High Street
Boston, MA 02110-2371
RE: Management Statement Regarding Compliance with Certain Provisions of the
Investment Company Act of 1940.
Ladies and Gentlemen:
Norwest Bank, Minnesota, N.A., as investment manger for Cash Investment Fund,
U.S. Government Fund, Treasury Fund, Treasury Plus Fund, Ready Cash Investment
Fund, Municipal Money Market Fund, Stable Income Fund, Limited Term Government
Fund, Intermediate Government Income Fund, Diversified Bond Fund, Income Fund,
Total Return Bond Fund, Limited Term Tax-Free Fund, Tax-Free Income Fund,
Colorado Tax-Free Fund, Minnesota Intermediate Tax-Free Fund, Minnesota Tax-Free
Fund, Strategic Income Fund, Moderate Balanced Fund, Growth Balanced Fund,
Aggressive Balanced-Equity Fund, Index Fund, Income Equity Fund, ValuGrowth
Stock Fund, Diversified Equity Fund, Growth Equity Fund, Large Company Growth
Fund, Diversified Small Cap Fund, Small Company Stock Fund, Small Company Growth
Fund, Small Cap Opportunities Fund, International Fund, Performa Strategic Value
Bond Fund, Performa Disciplined Growth Fund, Performa Small Cap Value Fund,
Performa Global Growth Fund, WealthBuilder II Growth Portfolio, WealthBuilder II
Growth and Income Portfolio, and WealthBuilder II Growth Balanced Portfolio of
Norwest Advantage Funds, is responsible for complying with the requirements of
subsections (b) and (c) of Rule 17f-2, "Custody of Investments of Registered
Management Investment Companies," of the Investment Company Act of 1940. It is
also responsible for establishing and maintaining an effective internal control
structure over compliance with Rule 17f-2 requirements.
Norwest Bank, Minnesota, N.A. has performed an evaluation of the Norwest
Advantage Funds' compliance with the requirements of subsections (b) and (c) of
Rule 17f-2 as of May 31, 1999. Based on this evaluation, it has been determined
that the Norwest Advantage Funds were in compliance with the requirements of
subsections (b) and (c) of Rule 17f-2 of the Investment Company Act of 1940 as
of May 31, 1999, with respect to securities reflected in the investment accounts
of the Norwest Advantage Funds.
Sincerely,
/s/ Carol Warner
Carol Warner, Senior Vice President
Trust Operations & Technology
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