FIRST AMERICAN
INVESTMENT FUNDS, INC.
TAX FREE
BOND
FUNDS
1999 SEMIANNUAL REPORT
[LOGO] FIRST AMERICAN
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN FAMILY OF FUNDS INVESTMENTS FOR EVERY GOAL
- ---------------------- FIRST AMERICAN FUNDS OFFER A FULL
HIGHER RETURN RANGE OF INVESTMENT STRATEGIES TO
POTENTIAL HELP YOU CREATE A PERSONALIZED,
- ---------------------- DIVERSIFIED PORTFOLIO. SUPPORTED BY
EXTENSIVE RESEARCH AND A HIGHLY
SECTOR FUNDS DEVELOPED TEAM APPROACH TO
INVESTMENT DECISION MAKING, FIRST
AMERICAN FUNDS CAN HELP BUILD A
INTERNATIONAL FUNDS WINNING STRATEGY FOR ANY INVESTOR.
SMALL CAP FUNDS
MID CAP FUNDS
LARGE CAP FUNDS
STRATEGY FUNDS
BOND FUNDS
TAX FREE BOND FUNDS
California Intermediate Tax Free
Colorado Intermediate Tax Free
Intermediate Tax Free
Minnesota Intermediate Tax Free
Minnesota Tax Free
Oregon Intermediate Tax Free
Tax Free
MONEY MARKET FUNDS
- ----------------------
LOWER RETURN
POTENTIAL
- ----------------------
TABLE OF
CONTENTS
- --------------------------------------------------------------------------------
MESSAGE TO SHAREHOLDERS 1
- --------------------------------------------------------------------------------
STATEMENTS OF NET ASSETS 3
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS 34
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 36
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 38
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 42
- --------------------------------------------------------------------------------
NOTICE TO SHAREHOLDERS 48
- --------------------------------------------------------------------------------
PROSPECTUS UPDATE 48
- --------------------------------------------------------------------------------
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
<PAGE>
MESSAGE TO SHAREHOLDERS MAY 14, 1999
DEAR SHAREHOLDERS:
On behalf of the entire board of directors and management of First American
Asset Management -- we are pleased to welcome all new fund shareholders and to
thank our long-term shareholders for your continued support.
The economic environment has changed dramatically since September 30, the
date of our last shareholder update. At that time, worried investors drove the
Dow Jones Industrial Average down 20 percent, fueled by fears of an economic
crisis overseas. Some economists even predicted that problems in Asia could
ultimately send the U.S. economy into a recession.
Since then, the Dow has staged a non-stop rally, rising more than 2,000
points to surpass the 10,000 barrier. Many Asian nations have partially
recovered from their financial crises, while the U.S. economy continues to
expand at an unprecedented rate. Thanks to low unemployment, low inflation,
stable interest rates and strong consumer spending, it is business as usual for
our robust economy.
With the continuing strong economy, the bond market has weakened as
investors become more concerned about possible acceleration of inflation and
rising demand for capital. The new higher yields of fixed-income securities
represent much more attractive long-term values than those of a few months ago.
The bond market is likely to stay weak until the economy shows some signs of
slowing.
Municipal bonds, in particular, offer compelling buying opportunities.
Yields on municipals as a percentage of Treasuries remain above historic norms,
offering attractive after-tax yields.
In these increasingly volatile markets, a well-balanced portfolio may
cushion you against unfavorable developments affecting any particular investment
style or asset class. We believe that successful long-term investing results
from asset allocation among equity, bond and money market funds. An asset
allocation plan can help smooth out market returns to produce more balanced
returns year after year.
As an investor in First American Funds, you can choose from 38 funds
spanning nine asset classes: money market, tax-free bond, bond, funds of funds,
and large-cap, mid-cap, small-cap, international and sector equity funds. First
American offers a wide range of funds to help you create a personalized,
diversified portfolio.
1 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
MESSAGE TO SHAREHOLDERS CONTINUED
In closing, we are pleased to announce that the First American family of
funds recently surpassed $30 billion in total assets -- a significant milestone
which illustrates the broad appeal of our team approach to management and our
commitment to disciplined investment processes.
Again, thank you for your confidence in our fund family. We look forward
to continuing to serve your investment needs.
Sincerely,
/s/ Virginia L. Stringer
VIRGINIA L. STRINGER
Chairman
First American Investment Funds, Inc.
/s/ James S. Doak
JAMES S. DOAK
Senior Managing Director, Equities
First American Asset Management
/s/ Paul A. Dow
PAUL A. DOW
Senior Managing Director, Fixed Income
First American Asset Management
2 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
CALIFORNIA INTERMEDIATE TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 100.0%
CALIFORNIA -- 98.7%
Alisal Unified School District, Series C,
Zero Coupon Bond (GO) (FGIC)
5.050%, 08/01/08 (A) $ 860 $ 576
Anaheim Electric (RB)
4.800%, 10/01/02 500 519
Bakersfield Convention Center Project
(COP) (MBIA) (MLO)
5.500%, 04/01/10 250 269
Burbank Public Service Department
(RB) (AMBAC)
6.100%, 06/01/01 200 211
California State (GO)
5.250%, 02/01/06 500 538
California State (GO) (AMBAC)
6.300%, 11/01/02 300 328
California State Department of Water,
Central Valley Project,
Callable 12/01/05 @ 101 (RB)
5.000%, 12/01/12 500 514
California State Department of Water,
Central Valley Project,
Pre-refunded @ 101 (RB)
5.300%, 06/01/06 (B) 750 817
California State Educational Facilities
Authority, Occidental College Project,
Callable 10/01/07 @ 102 (RB) (MBIA)
5.300%, 10/01/10 500 540
California State Educational Facilities
Authority, Pooled College & University
Projects, Series A (RB)
4.850%, 12/01/01 500 516
California State Health Facilities Authority,
Callable 08/01/08 @100 (RB)
5.375%, 08/01/09 250 265
California State Health Facilities Authority,
Sutter Health (RB) (FSA)
5.500%, 08/15/06 500 545
California State Housing Finance Agency,
Callable 08/01/04 @ 102 (RB)
6.550%, 02/01/05 150 160
California State Housing Finance Agency,
Home Mortgages, Series A (RB) (MBIA)
5.000%, 08/01/03 180 186
California State Housing Finance Agency,
Series E (RB) (MBIA)
5.850%, 08/01/04 150 158
California State Public Works, Community
Colleges (RB) (MLO)
5.250%, 03/01/08 450 485
California State Public Works, Department of
Corrections, Series A (RB) (AMBAC) (MLO)
6.000%, 01/01/06 545 610
California State Public Works, Various
University Projects (RB)
5.900%, 10/01/01 100 106
5.000%, 06/01/03 150 158
California State Resource Efficiency Finance
Authority, First Resource Efficiency
Project (RB) (AMBAC)
5.200%, 07/01/02 500 526
California State, Housing & Homeless
(GO) (AMT)
5.750%, 10/01/01 300 317
CALIFORNIA INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
California Statewide Community
Development Authority (GO) (AMT)
3.060%, 10/01/34 (C) $ 1,700 $ 1,700
California Statewide Community
Development Authority, Internext
Group Project (COP)
4.000%, 04/01/01 700 702
California Statewide Community
Development Authority, Series A,
Callable 08/01/03 @ 102 (COP) (CMI)
5.200%, 08/01/04 200 211
California Statewide Community
Development Authority, Community
Hospital of Monterey Peninsula,
Callable 08/18/08 @ 101 (COP) (MBIA)
5.250%, 08/15/09 500 537
Central Valley School District Financing
Authority (RB) (MBIA)
5.950%, 02/01/05 500 554
Central Valley School District, Financing
Authority, Series A, Zero Coupon
Bond (RB) (MBIA)
3.850%, 08/01/04 (A) 1,045 849
Contra Costa Water District,
Series G (RB) (MBIA)
5.400%, 10/01/03 500 537
Escondido Civic Center Project, Escrowed
to Maturity (RB) (AMBAC) (MLO)
5.800%, 09/01/04 100 110
Fontana School District (GO) (MBIA)
5.550%, 07/01/04 500 543
Fresno Unified School District (GO) (MBIA)
6.050%, 08/01/11 500 574
Golden West Schools Financing Authority,
Series A (RB) (MBIA)
5.700%, 02/01/13 (D) 720 796
5.750%, 02/01/14 (D) 770 855
Golden West Schools Financing Authority,
Zero Coupon Bond (RB)
5.000%, 02/01/12 (A) 535 294
Industry, Callable 07/01/02 @ 100.25
(GO) (FGIC)
5.800%, 07/01/04 100 106
Inglewood Public Financing Authority
(RB) (AMBAC)
5.900%, 05/01/01 100 105
Inglewood Redevelopment Agency,
Tax Allocation (GO) (AMBAC)
5.250%, 05/01/13 450 473
Inland Empire Solid Waste Financing
Authority, Landfill Improvements Project,
Series B (RB) (AMT) (MLO) (FSA)
5.750%, 02/01/04 500 538
John C. Fremont Hospital District,
Health Facility (RB) (CMI)
6.000%, 06/01/04 355 379
Kern County Board of Education,
Callable 05/01/08 @ 102
(COP) (MLO) (MBIA)
5.200%, 05/01/12 905 948
5.250%, 05/01/13 350 366
La Canada Unified School District (GO) (FGIC)
5.100%, 08/01/03 400 423
Los Angeles County Public Works Financing
Authority, Callable 03/01/03 @ 102 (RB)
4.800%, 03/01/04 400 418
3 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
CALIFORNIA INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Los Angeles County Public Works Financing
Authority, Regional Park & Open Space
District, Series A,
Callable 10/01/07 @ 101 (RB)
5.000%, 10/01/19 $ 265 $ 264
Los Angeles County Public Works Financing
Authority, Regional Park & Open Space
District, Series A, Escrowed to Maturity (RB)
5.500%, 10/01/02 500 532
5.625%, 10/01/03 500 541
Los Angeles County Transportation
Commission, Series B (RB) (FGIC)
5.875%, 07/01/02 250 268
Los Angeles County Transportation
Commission, Series B (RB) (FGIC)
6.000%, 07/01/04 250 277
Los Angeles, Series A,
Callable 09/01/04 @ 102 (GO) (MBIA)
5.800%, 09/01/07 250 276
Los Angeles Department of Water & Power,
Callable 04/15/02 @ 102 (RB)
6.100%, 04/15/03 250 272
Los Angeles Earthquake Rehabilitation,
Series C, Callable 01/01/00 @ 100
(RB) (AMT) (FNMA)
4.850%, 07/01/02 700 703
Los Angeles Public Works Financing,
Regal Park Project,
Callable 10/01/07 @ 101 (GO)
5.500%, 10/01/08 500 551
Los Angeles Municipal Improvement
Corporation Sanitation Equipment
(RB) (MLO) (FSA)
6.000%, 02/01/07 500 563
Los Angeles School District,
Callable 07/01/08 @ 102 (GO) (FGIC)
4.900%, 07/01/09 300 316
Martinez County School District,
Callable 08/01/00 @ 102 (GO)
5.750%, 08/01/05 150 156
Marysville Hospital, Series A,
Callable 01/01/09 @ 102 (RB) (AMBAC)
5.000%, 01/01/10 500 522
Metropolitan Water District Southern
California, Series B,
Callable 07/01/06 @ 102 (RB) (MBIA)
4.875%, 07/01/10 500 519
5.000%, 07/01/14 500 511
Modesto Water Utility System Refinancing
Project (COP) (FGIC)
5.000%, 10/01/05 740 789
Montebello Community Redevelopment
Agency (RB) (FSA)
4.750%, 09/01/07 270 283
Mt. Diablo Unified School District,
Community Facilities Project,
Callable 08/01/02 @ 102 (RB) (AMBAC)
5.800%, 08/01/03 100 109
Natomas Unified School District (GO) (MBIA)
5.850%, 03/01/15 500 560
Northern California Transmission Agency,
Cal-Ore Project (RB) (MBIA)
6.000%, 05/01/02 100 107
Oceanside Water System (COP) (AMBAC)
5.100%, 08/01/02 500 525
CALIFORNIA INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Orange County Juvenile Justice Center
Facility (COP) (MLO) (AMBAC)
5.750%, 06/01/01 $ 100 $ 105
Orange County Public Financing Authority,
Waste Management (RB) (AMT) (AMBAC)
4.700%, 12/01/05 500 515
Orange County Transportation Authority,
Callable 02/15/02 @ 102 (RB)
5.700%, 02/15/03 900 967
Oxnard School District (GO) (MBIA)
5.000%, 08/01/05 600 639
Paradise Unified School District,
Measure M Project, Series A,
Callable 09/01/05 @ 102
(COP) (MLO) (AMBAC)
5.250%, 09/01/07 300 325
Pomona Unified School District,
Callable 08/01/01 @ 103 (GO) (MBIA)
6.150%, 08/01/15 500 574
Pomona Unified School District,
Series A (GO) (MBIA)
5.450%, 02/01/06 250 272
5.500%, 08/01/06 250 274
Rancho Mirage Joint Powers Finance
Authority, Eisenhower Medical Center,
Series A, Callable 07/01/07 @ 102
(COP) (MBIA)
5.125%, 07/01/08 500 533
Redding Joint Powers Finance Authority,
Waste Water Project,
Callable 12/01/02 @ 102 (RB) (FGIC)
5.600%, 12/01/03 100 108
Redondo Beach Redevelopment Agency,
Residential Mortgages, Series A
(RB) (FNMA)
5.150%, 06/01/03 80 82
Rio Linda School District,
Callable 08/01/08 @ 100 (GO) (FSA)
5.000%, 08/01/09 500 529
Roseville High School District,
Callable 08/01/00 @ 102 (GO)
5.750%, 08/01/02 100 105
Sacramento County Multifamily Housing,
Parcwood Apartments,
Mandatory Put @ 100 (RB) (CGLI)
4.800%, 09/01/02 (E) 1,000 1,020
Sacramento Housing Authority,
Fairways I Apartments (RB) (FNMA)
5.875%, 02/01/08 90 90
San Diego County Water Authority,
Callable 05/01/08 @ 101 (COP)
5.000%, 05/01/13 505 519
San Diego County Water Authority,
Series A (COP)
5.250%, 05/01/06 500 539
San Francisco Airport Commission,
Second Series (RB) (AMT) (FGIC)
5.400%, 05/01/06 500 532
San Francisco Library Facilities Project,
Series D, Callable 06/15/00 @ 102 (GO)
5.700%, 06/15/01 250 262
San Francisco Library Facilities Project,
Series D, Pre-refunded @ 102 (GO)
5.800%, 06/15/00 (B) 250 263
4 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
CALIFORNIA INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
San Francisco Fire Department Facility
Project, Series C (GO) (FGIC)
7.000%, 06/15/03 $ 300 $ 338
San Francisco, Public Improvements,
Series B, Pre-refunded @ 100 (GO)
6.700%, 12/15/00 (B) 200 212
San Joaquin Hills Transportation Corridor
Agency, Zero Coupon Bond (RB) (MBIA)
4.700%, 01/15/05 (A) 705 559
San Jose Financing Authority, Convention
Center Project, Series C (RB) (MLO)
5.750%, 09/01/01 250 262
San Mateo County, Board of Education,
Callable 05/01/08 @ 101 (GO) (MLO)
4.600%, 05/01/12 505 496
Santa Ana Community Redevelopment
Agency, Series A,
Pre-refunded @ 102 (GO)
6.500%, 12/15/00 (B) 840 881
South County Regional Waste Water
Authority (RB) (AMBAC)
5.600%, 08/01/02 100 106
South Pasadena Unified School District,
Zero Coupon Bond (GO) (FGIC)
4.900%, 11/01/12 (A) 740 392
Sulphur Springs Unified School District,
Series B (GO)
5.400%, 03/01/02 500 525
Tulare County Financing Project,
Series A (COP) (MLO) (MBIA)
5.600%, 11/15/02 100 107
Turlock Irrigation District, Series A,
Callable 07/01/02 @ 102 (RB) (MBIA)
6.000%, 01/01/04 100 109
University of California, Various Capital
Projects, Series B,
Callable 09/01/01 @ 102
(COP) (MLO) (MBIA)
5.350%, 09/01/02 300 317
Walnut Valley School District,
Series A (GO) (MBIA)
6.800%, 02/01/07 250 295
6.850%, 08/01/07 250 298
West Covina Redevelopment Agency,
Community Facilities District (RB)
5.125%, 09/01/05 300 316
West Covina, Civic Center Project
(COP) (MLO) (FSA)
5.250%, 09/01/07 250 270
William S. Hart Joint School Financing
Authority, Callable 09/01/05 @ 102
(RB) (FSA)
6.100%, 09/01/06 200 227
------------
42,969
------------
PUERTO RICO -- 1.3%
Puerto Rico Commonwealth (GO) (MBIA)
6.250%, 07/01/08 500 577
------------
TOTAL MUNICIPAL BONDS
(Cost $41,701) 43,546
------------
CALIFORNIA INTERMEDIATE TAX FREE FUND
(CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
MONEY MARKET FUND -- 2.7%
Provident California Tax Free
Money Market 1,158,669 $ 1,159
------------
TOTAL MONEY MARKET FUND
(Cost $1,159) 1,159
------------
TOTAL INVESTMENTS -- 102.7%
(Cost $42,860) 44,705
------------
OTHER ASSETS AND LIABILITIES, NET -- (2.7%) (1,172)
------------
NET ASSETS:
Portfolio Capital--Class-A
($.0001 par value--2 billion authorized)
based on 67,989 outstanding shares 697
Portfolio Capital--Class-Y
($.0001 par value--2 billion authorized)
based on 4,189,884 outstanding shares 40,992
Accumulated net realized loss on investments (1)
Net unrealized appreciation of investments 1,845
------------
TOTAL NET ASSETS -- 100.0% $ 43,533
------------
Net asset value and redemption
price per share--Class-A $ 10.23
Maximum sales charge of 2.50% (F) 0.26
------------
Offering price per share--Class-A $ 10.49
------------
Net asset value, offering price, and redemption
price per share--Class-Y $ 10.22
------------
(A) The rate shown is the effective yield at time of purchase.
(B) Pre-refunded Security--Pre-refunded issues are typically backed by U.S.
Government obligations or municipal bonds. These bonds mature at the call
date indicated. The pre-refunded date is shown as the maturity date on the
Statement of Net Assets.
(C) Variable Rate Security--the rate shown is the rate in effect as of March 31,
1999.
(D) At March 31, 1999, the cost of securities purchased on a when-issued basis
was: Golden West Schools, $1,630,979.
(E) Mandatory Put Security--the mandatory put date is shown as the maturity date
on the Statement of Net Assets.
(F) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 2.50%.
AMBAC--American Municipal Bond Assurance Company
AMT--Alternative Minimum Tax
CGLI--Connecticut General Life Insurance
CMI--California Mortgage Insurance Program
COP--Certificates of Participation
FGIC--Financial Guaranty Insurance Corporation
FNMA--Federal National Mortgage Association
FSA--Financial Security Assurance
GO--General Obligation
MBIA--Municipal Bond Insurance Association
MLO--Municipal Lease Obligation
RB--Revenue Bond
The accompanying notes are an integral part of the financial statements.
5 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
COLORADO INTERMEDIATE TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 97.4%
COLORADO -- 97.4%
Adams & Arapahoe Counties Joint School
District #28-J, Callable 12/01/06 @ 102
(GO) (FGIC) (STAID)
5.750%, 12/01/07 $ 1,000 $ 1,107
Adams County School District #12,
Callable 12/15/03 @ 100 (GO) (FGIC)
6.200%, 12/15/08 455 497
Adams County School District #14
(GO) (FSA) (STAID)
5.100%, 12/01/07 1,000 1,060
Adams County School District #50,
Callable 12/01/06 @ 100 (GO) (STAID)
5.250%, 12/01/10 750 783
Arapahoe County, Cherry Creek School
District #5, Callable 12/15/03 @ 100
(GO) (STAID)
5.250%, 12/15/04 500 530
Arapahoe County, Littleton School District #6,
Callable 12/01/06 @ 102 (GO) (STAID)
5.125%, 12/01/09 1,000 1,061
5.250%, 12/01/10 1,000 1,061
Aurora, Callable 12/01/04 @ 101
(COP) (MLO)
6.000%, 12/01/06 1,000 1,055
Aurora Community College Project
(RB) (MLO) (CLE)
5.750%, 10/15/04 500 545
Boulder County Sales & Use Tax (RB) (FGIC)
5.750%, 12/15/05 1,000 1,099
Boulder County, University Atmospheric
Research (RB) (MBIA)
3.875%, 09/01/06 1,000 984
Boulder, Larimer & Weld Counties,
Vrain Valley School District,
Callable 12/15/04 @ 100 (GO) (MBIA)
5.800%, 12/15/07 500 537
Boulder Valley School District #RE-2,
Callable 10/15/01 @ 100 (GO) (STAID)
5.900%, 10/15/02 500 527
5.900%, 10/15/03 500 525
Boulder Valley School District #RE-2,
Pre-refunded @ 101 (GO) (STAID)
5.950%, 12/01/04 (A) 1,000 1,109
Brighton, Callable 12/01/01 @ 101
(GO) (MBIA)
6.350%, 12/01/05 95 102
Colorado Springs,
Callable 09/01/03 @ 100 (GO)
5.000%, 09/01/06 500 517
Colorado Springs Memorial Hospital,
Callable 12/15/05 @ 102 (RB) (MBIA)
6.000%, 12/15/15 500 543
Colorado Springs Utilities,
Callable 11/15/01 @ 102 (RB)
6.625%, 11/15/04 1,000 1,089
6.500%, 11/15/15 1,495 1,618
Colorado State Board of Agriculture,
Fort Lewis College Project (RB) (FGIC)
6.000%, 10/01/02 250 269
COLORADO INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Colorado State Board of Agriculture,
Fort Lewis College Project,
Series A (RB) (AMBAC)
4.750%, 10/01/08 $ 845 $ 872
Colorado State Board of Agriculture,
Fort Lewis College Project, Series A,
Callable 10/01/08 @ 100 (RB) (AMBAC)
4.750%, 10/01/09 905 927
Colorado State Board of Agriculture,
Fort Lewis College Project,
Series B (RB) (AMBAC)
4.750%, 10/01/08 450 464
Colorado State Board of Agriculture,
Fort Lewis College Project, Series B,
Callable 10/01/08 @ 100 (RB) (AMBAC)
4.750%, 10/01/09 450 461
Colorado State Health Facilities Authority,
Boulder Community Hospital
Project B (RB) (MBIA)
3.000%, 10/01/14 (B) 1,500 1,500
Colorado State Health Facilities Authority,
Catholic Health Initiatives
Project, Series A (RB)
5.500%, 12/01/06 1,000 1,081
Colorado State Health Facilities Authority,
Liberty Heights, Zero Coupon Bond,
Escrowed to Maturity (RB)
5.330%, 07/15/20 (C) 2,000 635
Colorado State Health Facilities Authority,
National Jewish Medical & Research
Center, Callable 01/01/08 @ 101 (RB)
5.375%, 01/01/16 1,000 981
5.375%, 01/01/23 1,000 965
Colorado State Health Facilities Authority,
Sisters of Charity (RB) (MBIA)
5.500%, 12/01/07 1,000 1,081
Colorado State Housing Finance Authority,
Multifamily Housing, Series A (RB) (FHA)
5.125%, 10/01/03 430 444
Colorado State Housing Finance Authority,
Single Family Mortgages,
Series B-1 (RB) (AMT)
5.875%, 06/01/11 550 580
Colorado State Water Resource & Power
Development Authority (RB) (AMBAC)
5.500%, 09/01/04 1,000 1,076
Colorado State Water Resource & Power
Development Authority,
Callable 09/01/02 @ 101 (RB) (FSA)
5.900%, 09/01/03 250 269
Colorado State Water Resource & Power
Development Authority, Clean Water
Project, Callable 09/01/02 @ 102 (RB)
5.800%, 09/01/06 1,000 1,078
Denver, City & County School District #1,
Callable 12/01/09 @ 101
(GO) (FGIC) (STAID)
5.500%, 12/01/13 1,000 1,065
6 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
COLORADO INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Denver, Helen G. Bonfils Foundation,
Callable 12/01/07 @ 100 (RB)
5.125%, 12/01/17 $ 1,000 $ 1,002
Douglas & Elbert Counties, School
District #1, Pre-refunded @ 101
(GO) (MBIA) (STAID)
6.400%, 12/15/04 (A) 1,000 1,135
Eagle, Garfield & Routt Counties,
School District #50-J,
Callable 12/01/04 @ 102
(GO) (FGIC) (STAID)
6.125%, 12/01/09 1,290 1,437
El Paso County School District #2
(GO) (STAID)
7.050%, 12/01/04 1,000 1,153
El Paso County School District #20,
Series A (GO) (STAID)
6.100%, 12/15/05 500 558
El Paso County School District #49,
Series A (GO) (FSA) (STAID)
6.000%, 12/01/09 1,000 1,137
Elbert County School District C-1 Elizabeth,
Callable 12/01/09 @ 100 (GO) (STAID)
4.400%, 12/01/11 1,000 980
Englewood Civic Center Project,
Callable 12/01/08 @ 100
(COP) (MLO) (MBIA)
4.900%, 06/01/13 585 584
Fort Collins, Callable 12/01/02 @ 101 (GO)
6.400%, 12/01/09 575 630
Garfield, Pitkin, & Eagle Counties, School
District #1 (GO) (MBIA) (STAID)
6.000%, 12/15/04 1,000 1,104
Jefferson County Industrial Development
Authority, May Department Stores (RB)
6.625%, 09/01/01 250 263
Jefferson County, Metropolitan Y.M.C.A.
Project, Callable 08/01/04 @ 100 (RB)
7.500%, 08/01/08 1,000 1,072
Jefferson County School District #R-1,
Pre-refunded @ 101
(GO) (AMBAC) (STAID)
5.900%, 12/15/02 (A) 1,045 1,133
La Plata County School District #9-R,
Durango, Callable 11/01/02 @ 101
(GO) (FGIC) (STAID)
6.200%, 11/01/05 165 179
La Plata County School District #9-R,
Durango, Pre-refunded @ 101 (GO)
6.200%, 11/01/02 (A) 835 912
Larimer County School District #R-1
(GO) (STAID)
5.400%, 12/15/04 750 802
5.500%, 12/15/07 500 545
Larimer County School District #R-1,
Pre-refunded @ 101 (GO) (MBIA)
6.150%, 12/15/02 (A) 1,000 1,093
Larimer, Weld & Boulder Counties,
School District #R-2, Thompson,
Callable 12/15/04 @ 100 (GO) (STAID)
5.900%, 12/15/06 1,000 1,087
COLORADO INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Metex Metropolitan District, Series A
(GO) (MBIA)
5.000%, 12/01/03 $ 500 $ 525
Moffat County Pollution Control
(RB) (AMBAC)
5.500%, 11/01/05 1,000 1,082
Platte River Power Authority,
Series BB (RB)
5.500%, 06/01/02 500 527
Pueblo Urban Renewal Authority,
Callable 12/01/03 @ 101 (RB) (AMBAC)
5.800%, 12/01/09 840 910
Regional Transportation District (RB)
5.750%, 11/01/01 1,500 1,582
Regional Transportation District, Transit
Vehicles Project, Series A
(COP) (MLO) (AMBAC)
4.200%, 06/01/09 1,300 1,273
South Suburban Park & Recreation
District, Zero Coupon Bond
(GO) (MBIA)
6.000%, 12/15/01 (C) 1,000 904
Stonegate Village Metropolitan District,
Pre-refunded @ 100 (GO)
6.300%, 12/01/02 (A) 500 544
Summit County School District #R-1,
Pre-refunded @ 100 (GO) (FGIC)
6.450%, 12/01/04 (A) 1,250 1,411
Thornton (GO) (FGIC)
5.600%, 12/01/02 1,000 1,065
Thornton, Callable 12/01/02 @ 101
(GO) (FGIC)
5.650%, 12/01/03 1,000 1,071
University of Northern Colorado,
Auxiliary Facility System,
Callable 06/01/07 @ 100 (RB) (MBIA)
5.600%, 06/01/24 1,000 1,047
Weld County School District #6,
Callable 12/01/07 @ 101 (GO) (STAID)
5.000%, 12/01/08 1,000 1,055
Westminster Recreation Facilities
(COP) (MLO) (MBIA)
4.450%, 12/01/08 945 944
Westminster Sales & Use Tax,
Callable 12/01/07 @ 101 (RB) (FGIC)
5.250%, 12/01/11 500 527
Westminster Sales & Use Tax,
Series B (RB) (FGIC)
6.250%, 12/01/05 500 563
Westminster Water & Wastewater Utility
Enterprise, Callable 10/01/04 @ 100
(RB) (AMBAC)
5.800%, 12/01/05 1,000 1,088
------------
63,021
------------
TOTAL MUNICIPAL BONDS
(Cost $59,956) 63,021
------------
7 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
COLORADO INTERMEDIATE TAX FREE FUND
(CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
RELATED PARTY MONEY MARKET FUND -- 0.6%
First American Tax Free Obligations
Fund (D) 380,225 $ 380
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $380) 380
------------
TOTAL INVESTMENTS -- 98.0%
(Cost $60,336) 63,401
------------
OTHER ASSETS AND LIABILITIES, NET -- 2.0% 1,325
------------
NET ASSETS:
Portfolio Capital--Class-A
($.0001 par value--2 billion authorized)
based on 369,594 outstanding shares 3,833
Portfolio Capital--Class-Y
($.0001 par value--2 billion authorized)
based on 5,688,836 outstanding shares 57,707
Distributions in excess of net investment income (2)
Accumulated net realized gain on investments 123
Net unrealized appreciation of investments 3,065
------------
TOTAL NET ASSETS -- 100.0% $ 64,726
------------
Net asset value and redemption
price per share--Class-A $ 10.70
Maximum sales charge of 2.50% (E) 0.27
------------
Offering price per share--Class-A $ 10.97
------------
Net asset value, offering price, and redemption
price per share--Class-Y $ 10.68
------------
(A) Pre-refunded Security--Pre-refunded issues are typically backed by U.S.
Government obligations or municipal bonds. These bonds mature at the call
date indicated. The pre-refunded date is shown as the maturity date on the
Statement of Net Assets.
(B) Variable Rate Security--the rate shown is the rate in effect on March 31,
1999.
(C) The rate shown is the effective yield at the time of purchase.
(D) This money market fund is advised by U.S. Bank National Association who also
serves as Advisor for this Fund. See also the notes to the financial
statements.
(E) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 2.50%.
AMBAC--American Municipal Bond Assurance Company
AMT--Alternative Minimum Tax
CLE--Connie Lee
COP--Certificates of Participation
FGIC--Financial Guaranty Insurance Corporation
FHA--Federal Housing Authority
FSA--Financial Security Assurance
GO--General Obligation
MBIA--Municipal Bond Insurance Association
MLO--Municipal Lease Obligation
RB--Revenue Bond
STAID--State Aid Withholding
The accompanying notes are an integral part of the financial statements.
INTERMEDIATE TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 99.1%
ALABAMA -- 1.4%
Alabama State Docks Department
(RB) (MBIA)
5.250%, 10/01/10 $ 3,000 $ 3,178
Jefferson County Sewer,
Series A (RB) (FGIC)
5.375%, 02/01/06 1,500 1,608
Montgomery, Baptist Health
Special Care (RB) (MBIA)
4.000%, 11/15/03 1,640 1,645
4.100%, 11/15/05 500 499
------------
6,930
------------
ALASKA -- 3.3%
Alaska State Housing Finance
Corporation (RB)
5.900%, 12/01/04 700 736
Alaska State Housing Finance
Corporation (RB) (MBIA)
4.950%, 12/01/02 800 819
5.350%, 06/01/06 800 832
Alaska State Housing Finance Corporation,
Callable 06/01/04 @ 102 (RB)
5.400%, 12/01/23 3,000 3,026
Alaska State Housing Finance Corporation,
Callable 12/01/05 @ 102 (RB) (MBIA)
5.400%, 12/01/08 2,000 2,104
Alaska State Industrial
Development & Export Authority,
Callable 04/01/03 @ 102 (RB)
5.950%, 04/01/06 925 987
Alaska State, International Airports,
Series A (RB) (AMT) (AMBAC)
4.250%, 10/01/06 2,000 1,989
Anchorage (GO) (FGIC)
6.000%, 10/01/06 2,250 2,507
Anchorage, Electric Utility (RB) (MBIA)
5.500%, 12/01/02 700 742
Anchorage, Electric Utility,
Callable 06/01/99 @ 102 (RB) (MBIA)
7.125%, 06/01/06 1,000 1,026
Anchorage, Port & Terminal Facilities
(RB) (MBIA)
6.000%, 02/01/01 990 1,033
------------
15,801
------------
ARIZONA -- 5.7%
Arizona State, Educational Loan
Marketing (RB) (MBIA)
6.850%, 09/01/99 500 507
Arizona State Transportation Board,
Highway Project,
Pre-refunded @ 101 (RB)
6.900%, 07/01/00 (A) 300 316
Maricopa County School District #4,
Mesa (GO) (FSA)
5.250%, 07/01/04 4,000 4,252
Maricopa County School District #11,
Peoria, Series A,
Callable 07/01/07 @ 101 (GO) (AMBAC)
5.000%, 07/01/10 3,000 3,112
8 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Maricopa County School District #41,
Gilbert, Pre-refunded @ 101
(GO) (FGIC)
6.800%, 07/01/99 (A) $ 1,000 $ 1,019
7.000%, 07/01/99 (A) 1,000 1,020
Maricopa County School District #80,
Chandler, Series D (GO) (AMBAC)
4.600%, 07/01/05 4,000 4,125
Maricopa County School District #97,
Deer Valley, Series D (GO) (FGIC)
4.900%, 07/01/09 3,000 3,098
Maricopa County, School Improvements,
Callable 07/01/07 @ 100 (GO) (FGIC)
4.900%, 07/01/10 4,500 4,610
Maricopa County Unified School
District #69 (GO) (MBIA)
5.300%, 07/01/11 1,000 1,064
Phoenix, Callable 07/01/07 @ 102 (GO)
5.000%, 07/01/09 1,300 1,367
Pima County (GO)
6.000%, 07/01/02 800 856
Tempe Unified School District #213,
Series C (GO) (MBIA)
4.000%, 07/01/12 2,060 1,934
------------
27,280
------------
CALIFORNIA -- 4.2%
Azusa Redevelopment Agency, Single
Family Mortgages, Series A, Escrowed
To Maturity (RB) (FNMA)
6.400%, 10/01/02 1,000 1,093
Bakersfield Convention Center Expansion
Project, Callable 04/01/07 @ 101
(COP) (MLO) (MBIA)
5.400%, 04/01/09 1,000 1,077
California Educational Facilities Authority,
Stanford, Callable 12/01/07 @ 101 (RB)
5.350%, 06/01/27 3,000 3,091
California Health Facilities Authority,
Callable 05/24/99 @ 102 (RB) (CMI)
7.250%, 10/01/99 500 510
California State (GO) (AMBAC)
8.000%, 05/01/03 4,000 4,643
Mountain View Los Altos School District,
Series B, Callable 05/01/07 @ 102 (GO)
6.500%, 05/01/17 3,000 3,438
Orange County Transportation Authority,
Callable 02/15/02 @ 102 (RB)
5.700%, 02/15/03 200 215
5.750%, 02/15/04 1,000 1,072
Rio Linda Unified School District,
Callable 08/01/08 @ 100 (GO) (FSA)
5.200%, 08/01/11 1,000 1,057
San Jose Airport,
Callable 03/01/03 @ 102 (RB) (MBIA)
6.100%, 03/01/06 1,000 1,098
Tri-City Hospital District, Series B (RB) (MBIA)
5.750%, 02/15/03 2,870 3,078
------------
20,372
------------
COLORADO -- 3.8%
Boulder County, Open Space Capital
Improvement Trust Fund,
Callable 12/15/07 @ 101 (RB)
5.250%, 12/15/09 3,000 3,187
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Boulder, Larimer, & Weld Counties, Vrain
Valley School District #R-1,
Callable 12/15/04 @ 100 (GO) (MBIA)
5.600%, 12/15/05 $ 1,000 $ 1,061
Colorado State Health Facilities Authority,
Zero Coupon Bond, Escrowed to
Maturity (RB)
5.500%, 07/15/20 (B) 10,000 3,176
Colorado State Housing Finance Authority,
Series A-2, Callable 05/01/06 @ 105 (RB)
7.150%, 11/01/14 1,430 1,613
Colorado State Housing Finance Authority,
Single Family Mortgages,
Callable 08/01/99 @ 102 (RB) (FHA) (VA)
7.400%, 08/01/09 305 313
E-470 Public Highway Authority,
Zero Coupon Bond (RB) (MBIA)
5.370%, 09/01/22 (B) 10,000 2,983
Greeley Sales & Use Tax (RB) (MBIA)
6.000%, 08/01/99 400 404
Greenwood Metropolitan District,
Arapahoe County,
Callable 12/01/02 @ 100 (RB) (FSA)
7.300%, 12/01/06 2,000 2,234
Greenwood South Metropolitan District,
Arapahoe County,
Callable 12/01/02 @ 100 (RB) (MBIA)
7.250%, 12/01/06 1,500 1,673
Jefferson County, Callable 12/01/04 @ 100
(COP) (MLO) (MBIA)
6.650%, 12/01/08 500 555
University of Colorado,
Callable 05/24/99 @ 100 (RB)
7.625%, 06/01/06 25 25
Westminster Water & Waste Water
Utility Improvements,
Callable 12/01/04 @ 100 (RB) (AMBAC)
6.000%, 12/01/09 1,000 1,097
------------
18,321
------------
CONNECTICUT -- 0.9%
Connecticut State Special Tax Obligation,
Transportation Infrastructure, Series A,
Callable 09/01/03 @ 102 (GO)
5.125%, 09/01/05 4,000 4,249
------------
DELAWARE -- 1.1%
Delaware State (GO)
6.250%, 04/01/02 1,000 1,067
Delaware Transportation Authority,
Callable 07/01/98 @ 101.5 (RB)
7.500%, 07/01/02 1,000 1,018
Delaware State,
Callable 04/01/01 @ 102 (GO)
6.350%, 04/01/03 1,000 1,068
New Castle County,
Callable 10/01/03 @ 102 (GO)
5.300%, 10/01/05 2,000 2,136
------------
5,289
------------
DISTRICT OF COLUMBIA -- 0.7%
District of Columbia,
Callable 06/01/00 @ 102 (GO) (MBIA)
6.300%, 06/01/01 425 445
9 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
District of Columbia, Georgetown
University Project, Series A,
Callable 04/01/99 @ 102 (RB)
7.375%, 04/01/08 $ 2,525 $ 2,583
District of Columbia, Series A,
Pre-refunded @ 102 (GO)
6.300%, 06/01/00 (A) 75 79
------------
3,107
------------
FLORIDA -- 0.4%
Leon County (RB) (AMBAC)
5.250%, 10/01/07 (C) 2,005 2,121
------------
HAWAII -- 1.4%
Hawaii County, Public Improvements,
Pre-refunded @ 101 (RB) (FGIC)
7.100%, 06/01/00 (A) 1,000 1,053
Hawaii State (GO) (FGIC)
6.000%, 03/01/05 3,000 3,285
Hawaii State, Series B (GO)
5.750%, 03/01/00 1,000 1,022
Honolulu, Waste Water Systems,
Zero Coupon Bond (RB) (FGIC)
4.950%, 07/01/14 (B) 2,500 1,167
------------
6,527
------------
IDAHO -- 1.3%
Ada & Canyon Counties, Joint School
District #2, (GO)
5.500%, 07/30/13 1,115 1,207
Ada & Canyon Counties, Joint School
District #2, Pre-refunded @ 101 (GO)
5.500%, 07/30/05 (A) 1,000 1,089
5.500%, 07/30/05 (A) 1,000 1,089
Boise State University
Refunding & Improvements,
Callable 04/01/08 @ 101 (RB) (FSA)
5.000%, 04/01/12 1,225 1,258
Idaho State Health Facilities Authority,
Hospital Health Systems (RB) (MBIA)
5.000%, 12/01/09 1,555 1,615
------------
6,258
------------
ILLINOIS -- 8.5%
Chicago Water, Zero Coupon Bond
(RB) (FGIC)
6.780%, 11/01/08 (B) 5,150 3,334
7.120%, 11/01/09 (B) 6,450 3,953
7.560%, 11/01/10 (B) 3,980 2,305
Chicago, O'Hare International Airport
(RB) (AMT)
5.200%, 04/01/11 1,000 1,012
Chicago, Single Family Mortgages,
Series A, Callable 03/01/06 @ 103
(RB) (AMT) (GNMA) (FNMA) (FHLMC)
5.250%, 03/01/13 490 505
Cook County (RB) (MBIA)
7.250%, 11/01/07 2,000 2,408
Cook County High School District #236
(GO) (AMBAC)
5.500%, 12/01/07 2,000 2,170
De Kalb, Single Family Mortgages,
Series A (RB) (AMT) (GNMA)
7.000%, 12/01/01 350 363
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Greenville Educational Facilities, Greenville
College Project (RB)
4.750%, 06/01/07 $ 1,105 $ 1,079
Illinois State Development Finance Authority,
School District #U-46 (RB) (FSA)
5.000%, 01/01/16 1,625 1,638
5.000%, 01/01/17 1,000 1,002
Illinois State Educational Facilities
Authority (RB)
4.700%, 03/01/30 4,500 4,615
Illinios State Health Facilities Authority,
Alexian Brothers Health System
(RB) (FSA)
5.000%, 01/01/06 2,000 2,078
Illinois State (GO)
5.000%, 06/01/03 1,000 1,043
Illinois State Sales Tax, Series S (RB)
5.000%, 06/15/09 2,500 2,612
5.100%, 06/15/10 2,000 2,105
Melrose Park Water,
Callable 07/01/2008 @ 100 (RB) (MBIA)
4.700%, 07/01/09 1,725 1,740
Metropolitan Pier & Exposition Authority,
Zero Coupon Bond (RB) (FGIC)
5.400%, 06/15/15 (B) 10,000 4,401
Winnebago County School District #122,
Harlem-Loves Park, Zero Coupon
Bond (GO) (FSA)
5.090%, 01/01/09 (B) 1,990 1,268
5.200%, 01/01/17 (B) 3,000 1,202
------------
40,833
------------
INDIANA -- 0.5%
Indiana State Bond Bank, Common School
Fund (RB) (AMBAC)
5.000%, 02/01/09 1,000 1,034
Indiana State Housing Finance Authority,
Callable 07/01/05 @ 102 (RB)
6.150%, 07/01/17 1,335 1,413
------------
2,447
------------
IOWA -- 0.9%
Des Moines, Series C,
Pre-refunded @ 100 (GO)
6.900%, 06/01/99 (A) 500 503
Iowa State Finance Authority, Single Family
Mortgages, Series F (RB) (AMBAC)
5.350%, 07/01/99 235 236
Salix Pollution Control, Interstate Power
Company, Mandatory Put @ 100 (RB)
4.200%, 01/01/04 (D) 3,700 3,744
------------
4,483
------------
KANSAS -- 1.0%
Kansas State Development Finance
Authority (RB) (MBIA)
5.000%, 11/15/01 2,270 2,346
Sedgwick & Shawnee Counties, Single
Family Mortgages, Series A-2
(RB) (GNMA)
6.700%, 06/01/29 2,260 2,533
------------
4,879
------------
10 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
LOUISIANA -- 0.6%
Jefferson County (GO) (FGIC)
6.150%, 09/01/03 $ 2,500 $ 2,706
------------
MAINE -- 0.2%
Maine State Housing Authority, Series A,
Callable 02/01/04 @ 102 (RB)
5.650%, 11/15/20 1,000 1,017
------------
MARYLAND -- 1.3%
Anne Arundel County, Water Utility & Sewer
Improvements (GO)
6.000%, 02/01/08 1,695 1,909
Maryland State & Local Facilities Project,
Series Z, Callable 06/01/06 @ 100 (GO)
5.400%, 06/01/07 1,000 1,066
Montgomery County,
Callable 04/01/06 @ 102 (GO)
5.125%, 04/01/08 3,000 3,206
------------
6,181
------------
MASSACHUSETTS -- 2.3%
Massachusetts Bay Transportation
Authority (RB)
6.250%, 03/01/12 1,875 2,166
Massachusetts State Grant
Anticipation Note (RB)
5.500%, 12/15/13 3,000 3,256
Massachusetts State Health & Educational
Facilities Authority, Partners Healthcare
System, Series A (RB) (MBIA)
5.100%, 07/01/10 3,000 3,116
Massachusetts State Housing
Finance Agency (RB)
5.350%, 12/01/02 500 517
6.300%, 10/01/13 1,000 1,068
Massachusetts State Water Pollution
Control Abatement Trust (RB)
5.000%, 02/01/02 1,000 1,034
------------
11,157
------------
MICHIGAN -- 3.1%
Dexter Community Schools,
Callable 05/01/08 @ 100 (GO) (FGIC)
4.700%, 05/01/09 2,500 2,548
Jackson County Hospital Finance
Authority, Series A (RB) (AMBAC)
5.000%, 06/01/09 1,000 1,032
Michigan State Building Authority,
Callable 10/01/06 @ 102 (RB) (AMBAC)
5.050%, 10/01/09 585 599
Michigan State Housing Development
Authority, Callable 07/15/04 @ 102
(RB) (FNMA)
5.125%, 07/15/08 1,980 2,037
Oakland University,
Callable 05/15/07 @ 100 (RB) (MBIA)
5.600%, 05/15/10 1,000 1,085
Troy School District (GO)
4.650%, 05/01/06 2,000 2,061
Walled Lake Consolidated School District,
Callable 05/01/07 @ 100 (GO) (MBIA)
5.300%, 05/01/08 2,000 2,123
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Wayne Charter County Airport Revenue,
Callable 12/01/08 @ 101
(RB) (AMT) (MBIA)
5.250%, 12/01/09 $ 3,000 $ 3,163
------------
14,648
------------
MINNESOTA -- 2.6%
Anoka County, Resource Recovery,
Northern States Power (RB)
4.350%, 12/01/04 (C) 2,200 2,196
Bloomington Port Authority, Mall of
America Project, Series A,
Callable 02/01/04 @ 100 (RB) (FSA)
5.450%, 02/01/09 1,000 1,022
Dakota County Housing & Redevelopment
Authority (RB) (MLO)
4.650%, 02/01/00 1,000 1,013
Minneapolis & St. Paul Housing &
Redevelopment Authority,
Pre-refunded @ 102 (RB) (MBIA)
7.400%, 08/15/00 (A) 600 644
Minneapolis, Childrens Medical Center,
Series C, Pre-refunded @ 102 (RB)
7.000%, 06/01/01 (A) 1,000 1,089
Minneapolis, Hennepin Avenue Project,
Series C (GO)
6.200%, 03/01/02 800 855
Northern Minnesota Municipal Power
Agency, Series A,
Pre-refunded @ 102 (RB) (AMBAC)
5.700%, 01/01/03 (A) 2,500 2,710
St. Paul Housing & Redevelopment
Authority, Callable 08/01/06 @ 102.5
(RB) (AMBAC)
6.450%, 02/01/08 1,240 1,415
6.450%, 08/01/08 1,275 1,455
------------
12,399
------------
MISSISSIPPI -- 0.4%
Mississippi State, Capital Improvements,
Series B (GO)
6.000%, 08/01/01 2,000 2,110
------------
MISSOURI -- 0.7%
Kansas City School District
(RB) (MLO) (FGIC)
6.300%, 02/01/00 1,000 1,026
Kansas City School District,
Callable 02/01/01 @ 102
(RB) (MLO) (FGIC)
6.400%, 02/01/02 2,000 2,129
------------
3,155
------------
NEBRASKA -- 7.6%
Buffalo County Hospital Authority #1,
Escrowed To Maturity (RB)
6.375%, 11/01/03 120 128
Douglas County Hospital Authority #1
(RB) (AMBAC)
4.600%, 09/01/04 1,255 1,291
4.800%, 09/01/08 1,500 1,546
4.900%, 09/01/09 1,500 1,546
11 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Douglas County Hospital Authority #2,
Pre-refunded @ 102 (RB)
7.250%, 11/01/01 (A) $ 5,000 $ 5,523
Douglas County School District #17,
Millard, Series A,
Callable 05/15/99 @ 101 (GO) (MBIA)
5.050%, 05/15/01 750 759
Douglas County School District #17,
Millard, Series B,
Callable 05/15/99 @ 101 (GO) (MBIA)
5.000%, 05/15/00 500 506
Grand Island Electrical Systems Project,
Pre-refunded @ 101 (RB)
6.050%, 09/01/99 (A) 1,000 1,022
Lincoln Electric System, Series A (RB)
5.000%, 09/01/00 500 511
Lincoln Waterworks Revenue (RB)
4.900%, 08/15/03 1,000 1,044
Municipal Energy Agency of Nebraska,
Series A (RB) (AMBAC)
5.450%, 04/01/02 750 787
Municipal Energy Agency of Nebraska,
Series A, Callable 04/01/02 @ 102
(RB) (AMBAC)
5.600%, 04/01/03 750 800
Nebraska Educational Finance Authority,
Concordia University Project,
Callable 12/15/08 @ 100 (RB)
5.250%, 12/15/15 2,270 2,211
Nebraska Educational Finance Authority,
Creighton University Project,
Callable 01/01/06 @ 101 (RB) (AMBAC)
5.600%, 01/01/07 2,500 2,715
Nebraska Investment Finance Authority,
Catholic Health Initiatives, Series A,
Callable 12/01/07 @ 101 (RB)
5.000%, 12/01/09 3,000 3,098
Nebraska Investment Finance Authority,
Nebraska Methodist (RB) (MBIA)
6.750%, 03/01/01 2,000 2,117
Nebraska Public Power District,
Nuclear Facility Project,
Callable 01/01/03 @ 102 (RB) (MBIA)
5.200%, 07/01/00 1,000 1,022
Nebraska Public Power District,
Pre-refunded @ 100 (RB) (MBIA)
4.900%, 01/01/03 (A) 1,500 1,562
Nebraska Public Power District,
Series A (RB)
5.500%, 01/01/01 500 517
Nebraska Public Power District,
Series A (RB) (MBIA)
6.000%, 01/01/04 1,385 1,510
Omaha Public Power District,
Series B (RB)
5.000%, 02/01/03 1,000 1,042
Omaha Sewer Systems (RB)
5.200%, 01/15/02 1,000 1,039
Omaha Northwest Library Facilities
Corporation, Callable 08/15/07 @ 102
(RB) (MLO)
5.250%, 08/15/12 2,475 2,619
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Omaha, Pre-refunded @ 102 (GO)
5.900%, 09/01/01 (A) $ 500 $ 536
Ravenna Industrial Development,
Cargill Project (RB)
5.000%, 09/01/00 810 827
------------
36,278
------------
NEVADA -- 0.4%
Clark County School District, Building &
Renovation, Series B,
Callable 06/15/07 @ 101 (GO) (FGIC)
5.750%, 06/15/08 1,000 1,101
Washoe County School District,
Callable 08/01/02 @ 101 (GO) (MBIA)
5.700%, 08/01/03 1,000 1,067
------------
2,168
------------
NEW JERSEY -- 1.5%
New Jersey State (GO)
5.000%, 07/15/01 2,000 2,066
5.900%, 08/01/02 1,000 1,070
New Jersey State Transportation Trust
Fund Authority, Series B (RB) (MBIA)
5.000%, 06/15/04 2,830 2,975
New Jersey State Turnpike Authority,
Series A, Callable 01/01/01 @ 102
(RB) (AMBAC)
6.750%, 01/01/08 1,000 1,067
------------
7,178
------------
NEW MEXICO -- 0.1%
Farmington Utility Systems,
Escrowed to Maturity (RB)
10.000%, 01/01/02 350 380
------------
NEW YORK -- 3.9%
Hempstead Town Industrial Development
Agency, Callable 12/01/06 @ 102 (RB)
5.000%, 12/01/08 2,000 2,092
Middletown School District (GO) (FGIC)
5.000%, 11/01/05 3,000 3,168
Nassau County, General Improvements,
Series V (GO) (AMBAC)
5.150%, 03/01/04 2,000 2,108
New York City Transitional Finance Authority,
Series C, Callable 05/01/08 @ 101 (RB)
4.750%, 05/01/11 1,605 1,616
New York State Municipal Assistance
Corporation, Series I (RB)
6.250%, 07/01/05 1,500 1,677
New York State Dormitory Authority
(RB) (FSA)
4.750%, 07/01/08 4,425 4,545
New York State Dormitory Authority,
Columbia University Project,
Callable 07/01/08 @ 101 (RB)
5.500%, 07/01/09 1,000 1,093
New York State Dormitory Authority,
Manhattan College Project,
Callable 07/01/02 @ 102 (RB)
6.100%, 07/01/04 1,000 1,074
12 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
New York State Environmental Facilities
Corporation, Pollution Control Revenue,
Callable 11/15/04 @102 (RB)
6.400%, 05/15/06 $ 1,250 $ 1,412
------------
18,785
------------
NORTH CAROLINA -- 0.3%
North Carolina Medical Care Commission,
Duke University Health Systems,
Series B (RB)
4.500%, 06/01/07 1,350 1,366
------------
NORTH DAKOTA -- 0.7%
Grand Forks, United Hospital
Obligated Group (RB) (MBIA)
6.000%, 12/01/00 1,000 1,041
North Dakota State Building Authority,
Pre-refunded @ 100
(RB) (MLO) (AMBAC)
7.400%, 06/01/00 (A) 1,000 1,047
North Dakota State Industrial Commission,
Lignite Program, Series A (RB)
5.750%, 11/15/05 1,000 1,073
North Dakota State Student Loan (RB)
6.100%, 07/01/01 25 26
North Dakota State Student Loan,
Callable 05/24/99 @ 103 (RB) (AMBAC)
6.900%, 07/01/01 5 5
------------
3,192
------------
OHIO -- 3.4%
Butler County Transportation Improvement
District, Series A (RB) (FSA)
5.500%, 04/01/08 3,000 3,262
Franklin County Health Care, Friendship
Village, Callable 08/15/08 @ 102 (RB)
5.250%, 08/15/18 2,000 1,883
Lorain County Hospital Revenue, Catholic
Healthcare Partners, Series B,
Callable 09/01/07 @ 102 (RB) (MBIA)
5.375%, 09/01/09 1,000 1,071
Mahoning County Hospital Facilities Revenue,
Series A (RB) (MBIA)
4.800%, 11/15/09 2,145 2,182
Ohio State Building Authority, Juvenile
Correctional Facilities Project
(RB) (MLO) (AMBAC)
5.900%, 10/01/03 1,000 1,085
Ohio State Building Authority, Adult
Correctional Facilities Project
(RB) (MLO) (MBIA)
5.500%, 10/01/04 1,000 1,076
Ohio State Infrastructure Improvement (RB)
5.500%, 08/01/07 1,400 1,531
Ohio State Water Development
Authority (RB) (AMBAC)
5.250%, 06/01/06 2,000 2,134
Ohio State Water Development
Authority (RB) (MBIA)
6.000%, 12/01/00 2,000 2,086
------------
16,310
------------
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
OKLAHOMA -- 1.2%
Tulsa Metropolitan Utility Authority,
Callable 09/01/05 @ 102 (RB)
5.600%, 09/01/06 $ 1,000 $ 1,091
Oklahoma County Housing Finance
Authority, Pre-refunded @ 56.915,
Zero Coupon Bond (RB)
5.740%, 03/01/06 (A) (B) 3,690 1,554
Oklahoma Housing Finance Agency
(RB) (FNMA)
5.500%, 11/01/25 3,000 3,150
------------
5,795
------------
OREGON -- 2.5%
Lane County School District #19, Springfield,
Pre-refunded @ 101 (GO) (MBIA)
5.900%, 10/15/04 (A) 1,000 1,107
Polk, Marion & Benton Counties, School
District #13-J (GO) (FGIC)
5.500%, 12/01/04 1,015 1,097
Portland Community College District,
Series A, Pre-refunded @ 100 (GO)
6.000%, 07/01/02 (A) 500 535
Washington County,
Pre-refunded @ 100 (GO)
5.625%, 12/01/04 (A) 900 979
Washington County Unified Sewer Agency,
Pre-refunded @ 100 (RB) (AMBAC)
6.125%, 10/01/04 (A) 5,000 5,549
Yamhill County School District #40 (GO) (FGIC)
5.375%, 06/01/04 1,000 1,069
5.375%, 06/01/05 1,350 1,450
------------
11,786
------------
PENNSYLVANIA -- 2.7%
Erie County Prison Authority,
Pre-refunded @ 100
(RB) (MLO) (MBIA)
6.600%, 11/01/01 (A) 1,000 1,074
6.700%, 11/01/01 (A) 1,000 1,076
Governor Mifflin School District,
School Improvements,
Pre-refunded @ 100 (GO) (AMBAC)
6.500%, 02/01/02 (A) 2,000 2,149
Northumberland County, Commonwealth
Lease, Pre-refunded @ 100
(RB) (MLO) (MBIA)
6.600%, 10/15/01 (A) 1,000 1,073
Pennsylvania State (GO) (AMBAC)
5.125%, 09/15/03 5,000 5,267
Seneca Valley School District, Series A,
Callable 07/01/08 @ 100 (GO) (FGIC)
4.650%, 07/01/09 2,500 2,532
------------
13,171
------------
PUERTO RICO -- 0.6%
Puerto Rico Commonwealth (GO) (MBIA)
6.000%, 07/01/14 1,605 1,832
Puerto Rico Electric Power Authority,
Series A (RB) (MBIA)
6.000%, 07/01/06 1,000 1,120
13 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Puerto Rico Housing Finance Corporation,
Single Family Mortgages
(RB) (AMT) (GNMA)
6.000%, 02/01/02 $ 110 $ 114
Puerto Rico Housing Finance Corporation,
Single Family Mortgages (RB) (GNMA)
5.800%, 10/15/00 10 10
------------
3,076
------------
RHODE ISLAND -- 1.4%
Rhode Island State, Consolidated Capital
Development, Series B,
Pre-refunded @ 102 (GO)
6.125%, 05/15/00 (A) 5,200 5,464
Rhode Island Depositors Economic
Protection Corporation (RB) (FSA)
6.250%, 08/01/03 1,000 1,091
------------
6,555
------------
SOUTH CAROLINA -- 0.5%
Piedmont Municipal Power Agency,
Electric Revenue (RB) (FGIC)
6.250%, 01/01/04 2,350 2,527
------------
SOUTH DAKOTA -- 0.1%
Sioux Falls (COP) (MLO)
6.450%, 08/01/01 500 531
------------
TENNESSEE -- 1.5%
Chattanoga Health, Education & Housing
Facilities Authority, Catholic Health
Initiatives, Series A (RB)
5.500%, 12/01/07 1,000 1,081
Memphis (GO)
5.250%, 10/01/12 725 767
Nashville & Davidson Counties Water &
Sewer (RB) (MBIA)
6.000%, 01/01/04 2,000 2,178
Shelby County Health, Educational &
Housing Facilities Authority,
Callable 04/01/08 @ 101 (RB) (MBIA)
5.500%, 04/01/09 3,000 3,232
------------
7,258
------------
TEXAS -- 6.4%
Abilene Health Facilities Development,
Sears Methodist Retirement, Series A (RB)
5.100%, 11/15/05 1,115 1,116
5.250%, 11/15/06 1,175 1,179
5.300%, 11/15/07 1,000 997
5.350%, 11/15/08 1,300 1,305
Austin Electric, Waterworks & Sewer,
Pre-refunded @ 100 (RB)
6.600%, 10/01/99 (A) 365 371
Dallas (GO)
6.500%, 02/15/03 3,000 3,283
Dallas County, Callable 02/15/01 @ 100 (GO)
6.400%, 08/15/03 750 786
Galveston County Special Tax Revenue
(RB) (MBIA)
6.400%, 02/01/05 185 194
Galveston County Special Tax Revenue,
Escrowed to Maturity (RB) (MBIA)
6.400%, 02/01/05 315 354
Garland School District (GO) (PSFG)
8.000%, 02/15/01 1,000 1,078
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Houston Housing Finance Corporation (RB)
8.000%, 06/01/14 $ 2,000 $ 2,113
Irving Independent School District, Series A,
Zero Coupon Bond (GO) (PSFG)
5.000%, 02/15/09 (B) 6,190 3,936
Katy Independent School District, Zero
Coupon Bond (GO) (PSFG)
4.730%, 08/15/09 (B) 1,805 1,122
Lubbock Independent School District,
Pre-refunded @ 100 (GO) (PSFG)
6.375%, 08/15/00 (A) 725 755
Richardson Independent School District
(GO) (PSFG)
5.000%, 02/15/03 5,000 5,212
Texas State Correctional Facilities,
Liberty & Johnson Counties Project,
Pre-refunded @ 100 (RB) (MBIA)
6.850%, 09/15/01 (A) 1,000 1,076
Texas State Public Finance Authority,
Series A (RB)
6.500%, 10/01/04 5,000 5,617
------------
30,494
------------
UTAH -- 1.5%
Intermountain Power Agency (RB) (FSA)
5.250%, 07/01/03 1,000 1,054
Intermountain Power Agency,
Pre-refunded @ 102 (RB)
7.300%, 04/05/99 (A) 500 512
Nebo School District,
Callable 04/01/01 @ 100 (GO) (FGIC)
5.500%, 04/01/04 500 515
Salt Lake County Municipal Building
Authority, Series A (RB) (MLO)
6.000%, 10/01/03 525 568
Salt Lake County Municipal Building
Authority, Series A-1 (RB) (MLO)
6.000%, 10/01/01 475 501
Utah State Housing Finance Agency,
Single Family Mortgages (RB) (AMBAC)
6.300%, 01/01/18 1,180 1,258
Utah State Housing Finance Agency,
Single Family Mortgages (RB) (FHA) (VA)
6.350%, 01/01/02 110 114
5.650%, 07/01/06 585 616
5.950%, 07/01/08 2,130 2,241
------------
7,379
------------
VIRGINIA -- 2.1%
Fairfax County, Public Improvements,
Callable 06/01/05 @ 102 (GO)
5.000%, 06/01/06 2,000 2,118
Portsmouth, Callable 08/01/07 @ 101
(GO) (FGIC)
4.700%, 08/01/09 2,655 2,712
Riverside Regional Jail Authority,
Callable 07/01/05 @ 102 (RB) (MBIA)
5.700%, 07/01/08 2,000 2,177
Virginia State Housing Development
Authority, Series D (RB)
6.100%, 01/01/14 1,110 1,179
Virginia State Housing Development
Authority, Series H (RB)
6.200%, 07/01/04 1,000 1,060
14 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Virginia State Peninsula Regional
Jail Authority (RB) (MBIA)
5.300%, 10/01/09 $ 1,000 $ 1,054
------------
10,300
------------
WASHINGTON -- 11.8%
Clark County Public Utility District #1,
Callable 01/01/01 @ 102 (RB) (FGIC)
6.100%, 01/01/02 750 793
Clark County School District #37,
Callable 12/01/02 @ 100 (GO)
6.100%, 12/01/04 1,000 1,074
Conservation & Renewable Energy Systems,
Washington Conservation Project (RB)
5.650%, 10/01/03 700 750
Grant County Public Utility District #2 (RB)
5.750%, 01/01/02 670 703
Island County School District #206,
Callable 12/01/04 @ 100 (GO) (AMBAC)
5.750%, 12/01/06 700 756
King County Public Hospital District #4 (RB)
5.400%, 06/01/00 500 511
5.800%, 12/01/03 910 964
King County School District #403,
Pre-refunded @ 101 (GO)
6.050%, 12/01/02 (A) 875 951
King County School District #408 (GO)
6.200%, 12/01/02 515 557
King County School District #415 (GO)
5.750%, 12/01/01 950 1,001
King County School District #415,
Pre-refunded @ 100 (GO) (AMBAC)
6.450%, 06/01/04 (A) 920 1,028
King County, Pre-refunded @ 100 (GO)
6.900%, 12/01/00 (A) 500 528
King County, Series B,
Callable 12/01/07 @ 102 (GO)
5.850%, 12/01/13 3,000 3,319
Kitsap County School District #401,
Callable 12/01/02 @ 101 (GO)
6.625%, 12/01/08 750 828
Kitsap County School District #402,
Callable 05/24/99 @ 100 (GO)
7.400%, 12/01/99 115 115
Pierce County School District #320 (GO)
6.000%, 12/01/06 1,000 1,090
Pierce County School District #401,
Series A (GO)
5.950%, 12/01/01 640 676
Pierce County School District #403,
Callable 12/01/01 @ 100 (GO)
6.200%, 12/01/02 1,285 1,359
Pierce County School District #403,
Callable 12/01/02 @ 100 (GO)
6.350%, 12/01/04 500 539
Pierce County Sewer Improvements (RB)
5.000%, 02/01/02 500 502
Port Tacoma, Series A (GO)
6.300%, 06/01/01 790 833
Seattle Parking Facility, Zero
Coupon Bond (GO)
5.000%, 12/15/13 (B) 2,140 1,041
Seattle Solid Waste,
Callable 05/01/99 @ 102 (GO)
7.000%, 05/01/00 500 511
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Snohomish County Housing Authority,
Callable 04/01/06 @ 100 (RB)
6.300%, 04/01/16 $ 1,035 $ 1,095
Snohomish County Public Utilities District #1,
Callable 11/01/99 @ 100 (GO)
5.850%, 11/01/17 1,000 1,001
Snohomish County Public Utilities
District #1, Series A (GO)
6.800%, 01/01/05 2,000 2,131
Snohomish County Public Utilities
District #1, Series B (GO)
6.700%, 01/01/03 1,000 1,064
Snohomish County School District #2,
Series A, Callable 06/01/01 @ 100 (GO)
6.700%, 06/01/02 1,200 1,269
Snohomish County School District #2,
Callable 12/01/03 @ 102 (GO) (MBIA)
6.000%, 12/01/06 850 934
Snohomish County School District #2,
Pre-refunded @ 102 (GO) (MBIA)
6.000%, 12/01/03 (A) 950 1,054
Snohomish County School District #6 (GO)
6.250%, 12/01/01 900 960
Snohomish County School District #6,
Pre-refunded @ 100 (GO)
6.800%, 06/01/01 (A) 900 960
Snohomish County Solid Waste,
Pre-refunded @ 102 (GO) (MBIA)
6.800%, 12/01/01 (A) 650 715
South Columbia Basin (GO)
5.800%, 12/01/01 500 528
Spokane County School District #356,
Zero Coupon Bond (GO) (FGIC)
5.030%, 12/01/14 (B) 8,690 3,972
Spokane County School District #81 (GO)
5.900%, 12/01/02 1,000 1,074
Spokane County Sewer Revenue,
Callable 06/01/02 @ 100 (RB)
6.150%, 06/01/05 1,470 1,567
Spokane County Regional Solid
Waste Management,
Callable 12/01/02 @ 102 (RB) (AMBAC)
6.400%, 12/01/03 800 877
Tacoma Electric System Revenue,
Callable 01/01/02 @ 102 (RB) (AMBAC)
6.000%, 01/01/06 1,400 1,500
Tacoma, Series A,
Callable 07/01/02 @ 100 (GO)
5.900%, 07/01/03 600 636
Tacoma Utility Revenue,
Pre-refunded @ 101 (RB) (AMBAC)
6.800%, 12/01/99 (A) 465 481
Tacoma Utility Revenue,
Pre-refunded @ 101 (RB) (MBIA)
6.200%, 12/01/01 (A) 575 618
Thurston County School District #111,
Pre-refunded @ 100 (GO)
6.700%, 12/01/02 (A) 1,000 1,100
Washington Public Power Supply System,
Nuclear Project #2, Series A (RB)
5.000%, 07/01/05 3,300 3,440
Washington Public Power Supply System,
Nuclear Project #2, Series A
(RB) (AMBAC)
5.700%, 07/01/11 1,000 1,077
15 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Washington Public Power Supply System,
Nuclear Project #2,
Pre-refunded @ 102 (RB)
7.500%, 01/01/01 (A) $ 3,000 $ 3,253
Washington Public Power Supply System,
Nuclear Project #3, Series B (RB)
5.250%, 07/01/03 1,090 1,144
Washington State, Hearthstone Project,
Callable 01/01/05 @ 102 (RB)
6.000%, 01/01/10 810 889
Washington State (GO)
6.200%, 09/01/01 1,000 1,060
5.300%, 10/01/01 1,000 1,042
Washington State, Callable 04/01/01 @ 102
(COP) (MLO)
6.800%, 04/01/05 705 756
Washington State, Single Family Mortgages
(RB) (GNMA) (FNMA)
6.700%, 07/01/02 205 214
------------
56,840
------------
WEST VIRGINIA -- 0.4%
West Virginia State (GO) (FGIC)
4.400%, 06/01/05 2,000 2,039
------------
WISCONSIN -- 1.9%
Milwaukee County,
Callable 09/01/02 @ 100 (GO)
5.550%, 09/01/03 1,700 1,793
Milwaukee County, Series A,
Callable 09/01/02 @ 100 (GO)
5.875%, 09/01/07 500 532
Mount Pleasant,
Callable 10/01/00 @ 100 (GO)
6.300%, 10/01/03 735 764
Racine School District,
Pre-refunded @ 100 (GO) (AMBAC)
6.500%, 04/01/99 (A) 250 250
Wisconsin State Housing & Economic
Development Authority, Series A (GO)
5.000%, 11/01/01 1,585 1,618
Wisconsin State, Pre-refunded @ 101 (GO)
6.000%, 05/01/00 (A) 500 520
Wisconsin State Health & Education Facilities
Authority, Monroe Clinic (RB)
4.450%, 02/15/06 925 914
4.700%, 02/15/09 1,060 1,041
Wisconsin State Health & Education Facilities
Authority, Aurora Health Care, Series A,
Callable 02/15/09 @ 101 (RB)
5.500%, 02/15/20 1,500 1,477
------------
8,909
------------
WYOMING -- 0.3%
Sweetwater County, Pacific Power & Light
Project, Pre-refunded @ 100 (RB)
6.500%, 12/01/01 (A) 700 751
Wyoming Community Development Authority,
Single Family Mortgages (RB) (FHA) (VA)
6.200%, 06/01/99 500 501
------------
1,252
------------
TOTAL MUNICIPAL BONDS
(Cost $459,382) 475,839
------------
INTERMEDIATE TAX FREE FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
RELATED PARTY MONEY MARKET FUND -- 1.6%
First American Tax Free Obligations
Fund (E) 7,578,422 $ 7,578
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $7,578) 7,578
------------
TOTAL INVESTMENTS -- 100.7%
(Cost $466,960) 483,417
------------
OTHER ASSETS AND LIABILITIES, NET -- (0.7%) (3,552)
------------
NET ASSETS:
Portfolio Capital--Class-A
($.0001 par value --2 billion authorized)
based on 1,083,012 outstanding shares 11,756
Portfolio Capital--Class-Y
($.0001 par value--2 billion authorized)
based on 43,196,665 outstanding shares 451,595
Distributions in excess of net investment income (40)
Accumulated net realized gain on investments 97
Net unrealized appreciation of investments 16,457
------------
TOTAL NET ASSETS -- 100.0% $ 479,865
------------
Net asset value and redemption
price per share--Class-A $ 10.85
Maximum sales charge of 2.50% (F) 0.28
------------
Offering price per share--Class-A $ 11.13
------------
Net asset value, offering price, and redemption
price per share--Class-Y $ 10.84
------------
(A) Pre-refunded Security--Pre-refunded issues are typically backed by U.S.
Government obligations or municipal bonds. These bonds mature at the call
date indicated. The pre-refunded date is shown as the maturity date on the
Statement of Net Assets.
(B) The rate shown is the effective yield at the time of purchase.
(C) At March 31, 1999, the cost of securities purchased on a when-issued basis
were: Leon County, Florida, $2,045,120 and Anoka County, Minnesota,
$2,200,000.
(D) Mandatory Put Security--the mandatory put date is shown as the maturity date
on the Statement of Net Assets.
(E) This money market fund is advised by U.S. Bank National Association who also
serves as Advisor for this Fund. See also the notes to the financial
statements.
(F) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 2.50%.
AMBAC--American Municipal Bond Assurance Company
AMT--Alternative Minimum Tax
CMI--California Mortgage Insurance
COP--Certificates of Participation
FGIC--Financial Guaranty Insurance Corporation
FHA--Federal Housing Authority
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
FSA--Financial Security Assurance
GNMA--Government National Mortgage Association
GO--General Obligation
MBIA--Municipal Bond Insurance Association
MLO--Municipal Lease Obligation
PSFG--Permanent School Fund Guaranty
RB--Revenue Bond
VA--Veterans Administration
The accompanying notes are an integral part of the financial statements.
16 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
MINNESOTA INTERMEDIATE TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 100.0%
MINNESOTA -- 98.2%
Anoka County (GO)
5.550%, 02/01/05 $ 2,000 $ 2,082
Anoka County Capital Improvements (GO)
4.550%, 01/01/11 1,960 1,921
Anoka County Resource Recovery,
Northern States Power (RB)
4.400%, 12/01/05 (A) 2,300 2,290
Anoka County Resource Recovery,
Northern States Power,
Callable 12/01/99 @ 102 (RB)
6.850%, 12/01/01 1,000 1,042
Anoka-Hennepin School District #11,
Callable 02/01/03 @ 100 (GO) (FGIC)
4.875%, 02/01/07 3,300 3,379
Anoka-Hennepin School District #11,
Series C (GO) (FGIC)
4.600%, 02/01/01 3,000 3,060
Bass Brook, Minnesota Power & Light,
Pollution Control (RB)
6.875%, 12/01/02 2,000 2,048
Becker Tax Increment, Series D,
Callable 08/01/04 @ 100
(GO) (AMT) (MBIA)
6.000%, 08/01/07 3,955 4,053
Bemidji Independent School District #031,
Callable 04/01/07 @ 100 (GO) (FSA)
5.000%, 04/01/19 3,000 3,002
Bloomington Port Authority,
Callable 03/01/00 @ 100 (GO)
6.000%, 03/01/03 1,800 1,842
Bloomington Port Authority, Mall of America
Project, Series A (RB) (FSA)
5.000%, 02/01/01 1,090 1,116
5.000%, 02/01/02 1,585 1,636
Bloomington Port Authority, Mall of America
Project, Series A,
Callable 02/01/04 @ 100 (RB) (FSA)
5.450%, 02/01/09 3,405 3,479
Burnsville Independent School
District #191 (GO) (MSDCEP)
5.000%, 02/01/08 1,355 1,427
Burnsville Independent School District #191,
Callable 02/01/05 @ 100 (GO) (FSA)
6.200%, 02/01/17 1,000 1,097
Burnsville Independent School District #191,
Callable 02/01/08 @ 100 (GO) (MSDCEP)
5.000%, 02/01/09 1,225 1,282
Chaska Independent School District #112
(GO) (MSDCEP)
4.800%, 02/01/10 2,220 2,269
Chaska Independent School District #112,
Series A (GO) (MSDCEP)
4.600%, 02/01/07 1,835 1,880
Coon Rapids Multifamily Housing,
Woodland North Apartments,
Callable 12/01/03 @ 100 (RB) (FHA)
5.625%, 12/01/09 425 439
Coon Rapids Single Family Mortgages,
Callable 09/01/04 @ 102 (RB)
5.900%, 09/01/06 665 695
MINNESOTA INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Dakota County Capital Improvements (GO)
4.750%, 02/01/09 (A) $ 1,000 $ 1,018
4.850%, 02/01/10 (A) 1,000 1,017
Dakota County Housing & Redevelopment
Authority (RB) (MLO)
4.950%, 02/01/02 1,000 1,034
Dakota County Housing & Redevelopment Authority,
Callable 04/01/05 @ 102 (RB)
(AMT) (FNMA) (GNMA)
6.000%, 10/01/14 1,275 1,318
Dakota County Housing & Redevelopment
Authority, Callable 10/01/07 @ 101.5
(RB) (AMT) (GNMA)
5.125%, 10/01/20 1,355 1,386
Dakota County Housing & Redevelopment
Authority, Single Family Mortgages,
Callable 05/24/99 @ 103
(RB) (FHA) (GNMA) (VA)
7.250%, 03/01/06 305 312
Dakota County Housing & Redevelopment
Authority, Single Family Mortgages,
Callable 04/01/04 @ 102
(RB) (AMT) (FNMA)
6.250%, 10/01/04 705 738
Dakota, Washington & Stearns Counties
Housing & Redevelopment Authority,
Single Family Mortgages,
Callable 03/01/04 @ 102
(RB) (AMT) (FNMA)
6.000%, 09/01/04 350 367
6.500%, 09/01/10 460 488
Duluth Economic Development Authority,
Health Care Facility,
Callable 11/01/02 @ 102 (RB) (AMBAC)
6.100%, 11/01/04 650 705
Duluth Economic Development Authority,
Health Care Facility, Escrowed to
Maturity (RB) (AMBAC)
6.100%, 11/01/04 250 277
Eden Prairie Water & Sewer, Series A,
Zero Coupon Bond (GO)
4.700%, 12/01/06 (B) 2,090 1,507
Faribault Independent School
District #656 (GO) (FSA)
4.625%, 06/01/07 1,525 1,570
Forest Lake Independent School District
#831, Callable 02/01/08 @ 100 (GO)
5.000%, 02/01/09 1,500 1,571
Fridley School District #14,
Callable 02/01/05 @ 100 (GO) (FSA)
5.350%, 02/01/26 5,000 5,090
Hastings Health Care Facility,
Callable 09/15/08 @ 100 (RB) (ACA)
5.000%, 09/15/13 500 494
Hastings Independent School District #200,
Callable 02/01/08 @ 100 (GO) (MSDCEP)
5.000%, 02/01/11 1,095 1,130
Hastings Independent School District #200,
Series A, Callable 02/01/08 @ 100 (GO)
5.000%, 02/01/10 1,625 1,688
Hennepin County Lease Revenue (COP) (MLO)
4.650%, 11/15/08 1,275 1,307
17 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
MINNESOTA INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Hennepin County Lease Revenue,
Callable 11/15/08 @ 100 (COP) (MLO)
5.375%, 11/15/09 $ 2,280 $ 2,449
Hopkins Independent School
District #270, Series A,
Callable 02/01/03 @ 100 (GO) (MBIA)
4.800%, 02/01/05 2,000 2,056
Lakeville Independent School District #194,
Callable 02/01/09 @ 100 (GO)
5.000%, 02/01/16 2,500 2,517
Lakeville Independent School District #194,
Series A, Callable 02/01/08 @ 100
(GO) (MSDCEP)
5.125%, 02/01/22 6,000 5,956
Mankato Independent School District #77,
Series A, Callable 02/01/04 @ 100
(GO) (FSA)
5.100%, 02/01/07 1,000 1,039
Minneapolis, Sales Tax,
Callable 04/01/02 @ 102 (RB)
6.150%, 10/01/05 2,400 2,601
Minneapolis, Series B,
Callable 09/01/05 @ 100 (GO)
5.050%, 03/01/06 6,000 6,343
Minneapolis, Series C,
Pre-refunded @ 100 (GO)
6.250%, 03/01/02 (C) 1,000 1,071
6.350%, 03/01/02 (C) 1,200 1,288
Minneapolis & St. Paul Housing &
Redevelopment Authority, Health
One Obligated Group,
Callable 08/15/00 @ 102 (RB) (MBIA)
7.300%, 08/15/01 1,000 1,072
Minneapolis & St. Paul Housing &
Redevelopment Authority, Healthspan,
Series A, Callable 11/15/03 @ 102
(RB) (AMBAC)
5.000%, 11/15/07 2,000 2,080
5.000%, 11/15/13 2,000 2,013
Minneapolis & St. Paul Housing Finance
Board, Single Family Mortgages,
Phase VI, Series A,
Callable 05/24/99 @ 102 (RB)
7.700%, 08/01/00 105 107
Minneapolis & St. Paul Housing Finance
Board, Single Family Mortgages,
Series A, Callable 06/01/99 @ 102
(RB) (AMT) (FHA) (GNMA) (VA)
7.875%, 12/01/12 240 245
Minneapolis & St. Paul Metropolitan Airports
Commission (RB) (AMT) (AMBAC)
5.500%, 01/01/07 2,140 2,300
Minneapolis & St. Paul Metropolitan Airports
Commission, Callable 01/01/08
(RB) (AMT) (AMBAC)
5.500%, 01/01/09 2,500 2,681
Minneapolis & St. Paul Metropolitan Airports
Commission, Series 8,
Callable 01/01/02 @ 100 (RB) (AMT)
6.100%, 01/01/03 1,500 1,588
6.350%, 01/01/04 2,500 2,656
MINNESOTA INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Minneapolis & St. Paul Metropolitan Airports
Commission, Series 10,
Callable 01/01/03 @ 100 (RB)
5.000%, 01/01/05 $ 1,000 $ 1,036
Minneapolis Community Development Agency
(RB) (MBIA)
7.000%, 03/01/01 2,000 2,127
Minneapolis Community Development
Agency, Zero Coupon Bond (RB) (MBIA)
6.240%, 03/01/02 (B) 5,000 4,482
Minneapolis Health Care Facilities Authority,
Fairview Hospital & Healthcare,
Callable 11/15/03 @ 102 (RB) (MBIA)
5.100%, 11/15/05 1,000 1,059
Minneapolis Health Care Facilities Authority,
Fairview Hospital & Healthcare,
Series A (RB) (MBIA)
4.800%, 11/15/02 1,000 1,034
Minneapolis Mortgage Revenue,
Zero Coupon Bond,
Callable 10/01/05 @ 100 (RB)
7.103%, 10/01/12 (B) 2,950 1,272
Minneapolis Special School District #1
(GO) (MSDCEP)
5.000%, 02/01/04 3,375 3,540
Minneapolis Special School District #1,
Series A (COP) (MLO)
4.375%, 02/01/07 1,400 1,418
Minneapolis Special School District #1,
Series A, Callable 02/01/06 @ 100
(COP) (MLO) (MBIA)
5.900%, 02/01/11 2,150 2,340
Minneapolis Special School District #1,
Series B, Callable 02/01/03 @ 100
(COP) (MLO) (AMBAC)
5.400%, 02/01/04 2,000 2,107
5.500%, 02/01/05 2,000 2,106
Minnesota State,
Callable 08/01/07 @ 100 (GO)
4.800%, 08/01/11 2,710 2,762
4.850%, 08/01/12 5,420 5,513
Minnesota State,
Pre-refunded @ 100 (GO)
5.750%, 08/01/02 (C) 5,000 5,322
Minnesota State Agricultural & Economic
Development Board, Fairview Hospital
Project (RB) (MBIA)
5.400%, 11/15/08 1,000 1,074
5.750%, 11/15/26 2,000 2,126
Minnesota State Agricultural & Economic
Development Board, Fairview
Hospital Project, Series A,
Callable 11/15/07 @ 102 (RB) (MBIA)
5.500%, 11/15/17 1,500 1,571
Minnesota State Higher Educational Facilities
Authority, Augsburg College (RB)
4.500%, 10/01/06 505 502
4.850%, 10/01/09 520 518
Minnesota State Higher Educational Facilities
Authority, Augsburg College,
Callable 10/01/09 @ 100 (RB)
5.000%, 10/01/11 500 496
5.000%, 10/01/12 500 493
18 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
MINNESOTA INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Minnesota State Higher Educational Facilities
Authority, St. Benedict College,
Callable 03/01/07 @ 100 (GO)
4.875%, 03/01/08 $ 1,000 $ 1,006
5.100%, 03/01/11 2,885 2,890
Minnesota State Housing Finance Agency,
Rental Housing, Series D (RB) (MBIA)
4.650%, 02/01/00 1,665 1,675
5.050%, 08/01/03 835 861
5.150%, 08/01/04 820 851
Minnesota State Housing Finance Agency,
Rental Housing, Series D,
Callable 02/01/05 @ 102 (RB) (MBIA)
5.450%, 08/01/07 2,525 2,655
Minnesota State Housing Finance Agency,
Single Family Mortgages, Series C,
Callable 01/01/01 @ 102 (RB) (FHA) (VA)
6.600%, 07/01/02 705 738
Minnesota State Housing Finance Agency,
Single Family Mortgages,
Series D (RB) (AMBAC)
4.500%, 07/01/01 1,990 2,015
Minnesota State Housing Finance Agency,
Single Family Mortgages, Series D,
Callable 01/01/04 @ 102 (RB) (AMBAC)
4.800%, 07/01/04 3,385 3,459
Minnesota State Public Facilities Authority,
Water Pollution Control (RB)
5.000%, 03/01/06 1,490 1,574
Minnesota State Public Facilities Authority,
Water Pollution Control, Series A,
Callable 03/01/08 @ 100 (RB)
4.500%, 03/01/10 5,000 5,014
Minnesota State Public Facilities Authority,
Water Pollution Control, Series B,
Callable 03/01/01 @ 102 (RB)
6.350%, 03/01/03 500 533
New Hope Housing & Health Care Facilities,
Masonic Home North Ridge (RB)
5.000%, 03/01/04 330 329
5.100%, 03/01/05 550 550
5.200%, 03/01/06 645 644
5.300%, 03/01/07 685 684
New Hope Housing & Health Care Facilities,
Masonic Home North Ridge,
Callable 03/01/09 @ 102 (RB)
5.500%, 03/01/10 500 498
New Prague School District #721,
Callable 02/01/06 @ 100 (GO) (MBIA)
5.000%, 02/01/16 2,000 2,011
North Branch Independent School District #138,
Callable 02/01/05 @ 100 (GO)
(FGIC)
5.400%, 02/01/09 1,000 1,054
Northern Minnesota Municipal Power
Agency, Electric Systems (RB) (FSA)
5.500%, 01/01/07 3,000 3,249
Northern Minnesota Municipal Power
Agency, Series A (RB) (AMBAC)
5.500%, 01/01/03 2,500 2,649
Northern Minnesota Municipal Power
Agency, Series A,
Pre-refunded @ 102 (RB) (AMBAC)
5.600%, 01/01/03 (C) 1,900 2,053
5.900%, 01/01/05 (C) 1,800 1,963
MINNESOTA INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Northern Minnesota Municipal Power
Agency, Series B, Callable
01/01/09 @ 101 (RB) (AMBAC)
4.750%, 01/01/20 $ 1,000 $ 969
Olmsted County Housing & Redevelopment
Authority, Pre-refunded @ 100
(RB) (MLO)
7.000%, 02/01/01 (C) 1,025 1,088
Olmsted County Resource Recovery,
Series A, Callable 02/01/02 @ 100 (RB)
5.800%, 02/01/04 1,850 1,944
Osseo Independent School District, Series A,
Callable 02/01/00 @ 100 (GO)
5.500%, 02/01/01 1,300 1,321
Osseo Independent School District #279,
Callable 02/01/03 @ 100 (GO) (FGIC)
5.400%, 02/01/05 2,525 2,650
Pipestone Industrial Development,
Cargill Project (RB)
5.000%, 09/01/00 1,890 1,931
Plymouth Health Facilities,
Callable 06/01/04 @ 102 (RB) (CGIC)
6.200%, 06/01/11 1,360 1,500
Princeton Independent School District #477,
Callable 02/01/07 @ 100 (GO) (FSA)
5.125%, 02/01/24 2,000 2,008
Ramsey & Washington Counties, Resource
Recovery, Northern States Power,
Series A, Callable 05/24/99 @ 102.5 (RB)
6.200%, 12/01/00 1,000 1,029
Red Wing Independent School District #256,
Callable 02/01/08 @ 100 (GO) (MSDCEP)
5.000%, 02/01/10 2,015 2,094
Red Wing Independent School District #256,
Series A, Callable 02/01/03 @ 100 (GO)
5.250%, 02/01/05 1,010 1,059
Richfield Independent School District #280
(GO) (FGIC)
4.550%, 02/01/03 5,930 6,082
Robbinsdale, North Memorial Medical Center,
Series A (RB) (AMBAC)
5.100%, 05/15/03 1,000 1,046
Robbinsdale, North Memorial Medical Center,
Series B (RB) (AMBAC)
5.000%, 05/15/02 1,250 1,294
5.100%, 05/15/03 1,000 1,046
Rochester Independent School District #535,
Series A, Callable 02/01/00 @ 100 (GO)
5.600%, 02/01/03 1,500 1,529
Rochester, St. Mary's Hospital,
Escrowed to Maturity (RB)
5.750%, 10/01/07 2,460 2,620
Rosemount Independent School District,
Series A, Callable 06/01/04 @ 100 (GO)
5.625%, 06/01/07 1,400 1,491
Rosemount Independent School District #196,
Series A, Callable 06/01/08 @ 100
(GO) (MSDCEP)
4.375%, 06/01/10 1,930 1,915
Savage (GO) (FGIC)
5.200%, 02/01/05 1,000 1,062
Savage, Callable 02/01/06 @ 100 (GO) (FGIC)
5.350%, 02/01/07 1,000 1,068
5.500%, 02/01/08 1,000 1,073
19 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
MINNESOTA INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
South St. Paul Housing & Redevelopment
Authority, Single Family Mortgages,
Callable 09/01/05 @ 100 (RB) (FNMA)
5.100%, 09/01/07 $ 990 $ 1,018
Southern Minnesota Municipal Power Agency,
Callable 01/01/03 @ 102 (RB) (FGIC)
5.000%, 01/01/06 2,500 2,614
Southern Minnesota Municipal Power Agency,
Power Supply System, Series A (RB) (FGIC)
5.300%, 01/01/01 1,275 1,314
Southern Minnesota Municipal Power Agency,
Power Supply System, Series B,
Escrowed to Maturity (RB)
5.300%, 01/01/01 1,000 1,029
Southern Minnesota Municipal Power Agency,
Series A, Zero Coupon Bond (RB) (MBIA)
5.960%, 01/01/21 (B) 5,000 1,658
Southern Minnesota Municipal Power Agency,
Series B (RB) (MBIA)
4.850%, 01/01/07 1,875 1,946
Southern Minnesota Municipal Power Agency,
Zero Coupon Bond (RB) (MBIA)
6.180%, 01/01/20 (B) 3,500 1,221
St. Cloud Hospital Facilities,
Series A (RB) (AMBAC)
5.500%, 07/01/06 1,000 1,082
St. Cloud Hospital Facilities, Series B,
Pre-refunded @ 102 (GO) (AMBAC)
7.000%, 07/01/01 (C) 2,000 2,184
St. Cloud Law Enforcement Center,
Callable 02/01/01 @ 100 (RB) (MLO)
5.750%, 02/01/02 1,000 1,036
St. Cloud, Series A (GO)
6.000%, 08/01/02 1,000 1,062
St. Cloud, Series B,
Callable 08/01/08 @ 100 (GO) (FGIC)
5.000%, 08/01/09 1,780 1,869
St. Louis Park Health Care Facilities,
Callable 07/01/03 @ 102 (RB) (AMBAC)
4.600%, 07/01/05 (D) 6,000 6,183
St. Louis Park Housing & Redevelopment
Authority, Single Family Mortgages,
Callable 04/20/03 @ 100 (RB) (GNMA)
6.500%, 10/20/03 229 240
St. Louis Park Independent School District
#283, Callable 02/01/01 @ 100 (RB)
5.900%, 02/01/04 1,000 1,040
St. Paul, Callable 02/01/01 @ 100 (GO)
5.250%, 02/01/03 1,500 1,541
St. Paul Housing & Redevelopment Authority,
Callable 03/01/05 @ 102 (RB) (FNMA)
6.125%, 03/01/17 215 219
St. Paul Housing & Redevelopment Authority,
Civic Center Project (RB)
4.700%, 11/01/02 1,420 1,461
St. Paul Housing & Redevelopment Authority,
Downtown & Seventh Place Project,
Escrowed to Maturity (RB) (AMBAC)
4.850%, 09/01/01 2,000 2,056
St. Paul Housing & Redevelopment Authority,
Downtown & Seventh Place Project,
Escrowed to Maturity,
Callable 09/01/03 @
101 (RB) (AMBAC)
5.200%, 09/01/04 4,000 4,232
MINNESOTA INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
St. Paul Housing & Redevelopment Authority,
Downtown & Seventh Place Project,
Escrowed to Maturity,
Callable 09/01/04 @
100 (RB) (AMBAC)
5.350%, 09/01/07 $ 1,500 $ 1,594
St. Paul Housing & Redevelopment
Authority, Health Care Facility,
Regions Hospital Project (RB)
5.000%, 05/15/06 1,000 1,016
5.000%, 05/15/08 1,195 1,206
St. Paul Housing & Redevelopment
Authority, St. Paul Heart and Lung
Center, Mandatory Put @ 100
(RB) (NBM)
4.700%, 12/01/00 (E) 2,975 3,016
St. Paul Housing & Redevelopment
Authority, Tax Increment Revenue
(RB) (AMBAC)
6.250%, 08/01/05 1,110 1,237
St. Paul Housing & Redevelopment
Authority, Tax Increment Revenue,
Callable 08/01/06 @ 102.5 (RB) (AMBAC)
6.400%, 08/01/07 1,205 1,373
6.500%, 02/01/09 1,315 1,494
St. Paul Housing & Redevelopment
Authority, Tax Increment Revenue,
Callable 08/01/06 @ 102.5
(RB) (AMBAC)
6.400%, 02/01/07 1,195 1,354
St. Paul Independent School District #625,
Callable 02/01/04 @ 100 (GO)
5.800%, 02/01/07 1,000 1,070
St. Paul Independent School District #625,
Series C (COP) (MLO)
5.850%, 02/01/07 1,000 1,078
St. Paul Port Authority, Energy Park,
Tax Increment (RB) (FSA)
5.000%, 02/01/08 2,100 2,191
St. Paul Port Authority, Industrial
Development, Escrowed to Maturity (RB)
8.250%, 11/01/99 115 118
St. Paul Science Museum, Escrowed
to Maturity (COP)
7.500%, 12/15/01 424 449
St. Paul Sewer, Callable 06/01/03 @ 100
(RB) (AMBAC)
5.350%, 12/01/04 3,000 3,168
5.450%, 12/01/05 5,000 5,275
Stearns County Housing & Redevelopment
Authority (RB) (MLO)(FSA)
4.950%, 02/01/09 1,540 1,597
Stillwater Independent School District #834,
Callable 02/01/02 @ 100 (GO) (FGIC)
5.200%, 02/01/03 2,500 2,594
Stillwater Independent School District #834,
Callable 02/01/09 @100 (GO) (MSDCEP)
4.750%, 02/01/11 2,140 2,165
Vadnais Heights, Single Family
Mortgages (RB)
5.500%, 11/01/04 640 668
6.000%, 11/01/09 365 386
Washington County Housing &
Redevelopment Authority,
Jail Facility (RB) (MLO)
5.000%, 02/01/03 2,755 2,871
20 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
MINNESOTA INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Washington County Housing &
Redevelopment Authority, Jail Facility,
Callable 02/01/03 @ 100
(RB) (MLO) (MBIA)
5.400%, 02/01/08 $ 1,580 $ 1,639
Washington County Housing &
Redevelopment Authority, Jail Facility,
Escrowed to Maturity (RB) (MLO)
6.500%, 02/01/01 1,000 1,052
Washington County Housing &
Redevelopment Authority, Jail Facility,
Pre-refunded @ 100 (RB) (MLO)
6.800%, 02/01/02 (C) 1,500 1,625
Washington County, Raymie Johnson
Apartments, Series C (GO) (FGIC)
6.000%, 01/01/10 1,340 1,443
West St. Paul Independent School
District #197, Capital Appreciation,
Zero Coupon Bond (GO) (MBIA)
5.900%, 02/01/05 (B) 2,000 1,577
Western Minnesota Municipal Power Agency,
Callable 01/01/03 @ 100 (RB) (AMBAC)
6.500%, 01/01/04 1,980 2,107
Western Minnesota Municipal Power Agency,
Callable 01/01/06 @ 102 (RB) (AMBAC)
5.500%, 01/01/11 5,000 5,354
Western Minnesota Municipal Power Agency,
Series A, Callable 01/01/06 @ 102
(RB) (AMBAC)
5.500%, 01/01/13 2,000 2,125
Western Minnesota Municipal Power Agency,
Series B (RB) (AMBAC)
6.000%, 01/01/03 1,500 1,615
Willmar Independent School District #347
(GO) (MSDCEP)
4.950%, 02/01/06 1,000 1,050
Willmar Independent School District #347,
Callable 02/01/06 @ 100 (GO) (MSDCEP)
5.150%, 02/01/09 1,610 1,685
Willmar Independent School District #347,
Series C, Callable 02/01/02 @ 100
(GO) (AMBAC)
6.150%, 02/01/09 1,000 1,064
------------
316,051
------------
PUERTO RICO -- 1.7%
Puerto Rico Housing Finance Agency, Single
Family Mortgages, Portfolio 1,
Series B (RB) (GNMA)
6.800%, 10/15/99 115 116
Puerto Rico Infrastructure Financing Authority,
Callable 01/01/08 @ 101 (RB) (AMBAC)
5.000%, 07/01/28 5,310 5,285
------------
5,401
------------
VIRGIN ISLANDS -- 0.1%
Virgin Islands Special Tax, Pre-refunded @102
7.750%, 10/01/01 (C) 330 361
------------
TOTAL MUNICIPAL BONDS
(Cost $308,644) 321,813
------------
MINNESOTA INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
MONEY MARKET FUND -- 0.4%
Federated Minnesota Municipal
Cash Trust 1,370,708 $ 1,371
------------
TOTAL MONEY MARKET FUND
(Cost $1,371) 1,371
------------
TOTAL INVESTMENTS -- 100.4%
(Cost $310,015) 323,184
------------
OTHER ASSETS AND LIABILITIES, NET -- (0.4%) (1,263)
------------
NET ASSETS:
Portfolio Capital--Class-A
($.0001 par value--2 billion authorized)
based on 1,366,143 outstanding shares 13,699
Portfolio Capital--Class-Y
($.0001 par value--2 billion authorized)
based on 30,439,263 outstanding shares 294,921
Undistributed net investment income 28
Accumulated net realized gain on investments 104
Net unrealized appreciation of investments 13,169
------------
TOTAL NET ASSETS -- 100.0% $ 321,921
------------
Net asset value and redemption
price per share--Class-A $ 10.15
Maximum sales charge of 2.50% (F) 0.26
------------
Offering price per share--Class-A $ 10.41
------------
Net asset value, offering price, and redemption
price per share--Class-Y $ 10.12
------------
(A) At March 31, 1999, the cost of securities purchased on a when- issued basis
were: Anoka County Resource Recovery, $2,300,000, and Dakota County Capital
Improvements, $2,038,820.
(B) The rate shown is the effective yield at time of purchase.
(C) Pre-refunded Security--Pre-refunded issues are typically backed by U.S.
Government obligations or municipal bonds. These bonds mature at the call
date indicated. The pre-refunded date is shown as the maturity date on the
Statement of Net Assets.
(D) Variable Rate Security--the rate shown is the rate in effect as of March 31,
1999.
(E) Mandatory Put Security--the mandatory put date is shown as the maturity date
on the Statement of Net Assets.
(F) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 2.50%.
ACA--American Capital Access
AMBAC--American Municipal Bond Assurance Company
AMT--Alternative Minimum Tax
CGIC--Capital Guaranty Insurance Company
COP--Certificate of Participation
FGIC--Financial Guaranty Insurance Corporation
FHA--Federal Housing Authority
FNMA--Federal National Mortgage Association
FSA--Financial Security Assurance
GNMA--Government National Mortgage Association
GO--General Obligation
MBIA--Municipal Bond Insurance Association
MLO--Municipal Lease Obligation
MSDCEP--Minnesota School District Credit Enhancement Program
NBM--Norwest Bank Minnesota
RB--Revenue Bond
VA--Veterans Administration
The accompanying notes are an integral part of the financial statements.
21 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
MINNESOTA TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 93.7%
MINNESOTA -- 93.7%
Austin Housing & Redevelopment Authority,
Callable 01/01/06 @ 102 (RB)
7.250%, 01/01/26 $ 500 $ 538
Big Lake Independent School District,
Callable 02/01/07 @ 100 (GO) (MBIA)
5.600%, 02/01/15 1,000 1,058
Brooklyn Center Health Care Facilities,
Callable 12/01/03 @ 102 (RB)
7.600%, 12/01/18 900 965
Burnsville Independent School District #191,
Series A, Callable 02/01/06 @ 100 (GO)
4.875%, 02/01/13 1,450 1,460
Chaska Independent School District #112,
Series B, Callable 02/01/06 @ 100 (GO)
5.875%, 02/01/11 1,965 2,166
5.875%, 02/01/12 2,200 2,425
6.000%, 02/01/16 5,525 6,131
Chicago Health Facilities Authority,
Callable 07/01/05 @ 102 (RB)
7.300%, 07/01/25 400 432
Columbia Heights Independent School District
#013, Callable 02/01/07 @ 100 (GO)
5.250%, 02/01/15 1,000 1,029
Coon Rapids Multifamily Housing,
Callable 02/01/02 @ 102 (RB)
6.750%, 08/01/23 680 716
Coon Rapids Multifamily Housing,
Callable 11/01/07 @ 102 (RB)
6.250%, 05/01/18 500 512
Coon Rapids Multifamily Housing,
Callable 12/01/03 @ 100 (RB) (FHA)
5.625%, 12/01/09 885 914
Coon Rapids Nursing Home Facilities
Authority, North Cities Health Project (RB)
6.000%, 05/01/03 775 805
Dakota County Housing & Redevelopment
Authority, Callable 09/01/99 @ 103
(RB) (GNMA)
8.100%, 09/01/12 295 304
Duluth Economic Development Authority (COP)
8.000%, 08/01/08 325 383
Duluth Economic Development Authority,
Health Care Facilities,
Callable 11/01/02 @ 102 (RB) (AMBAC)
6.300%, 11/01/22 145 158
Eden Prairie Independent School District
#272, Callable 02/01/08 @ 100 (GO)
5.100%, 02/01/12 1,150 1,195
Fairmont Senior Housing Mortgage,
Callable 07/01/02 @ 102 (RB)
8.500%, 07/01/15 900 972
Fergus Falls Health Care Facilities,
Series A, Callable 11/01/04 @ 102 (RB)
7.000%, 11/01/19 1,000 1,054
Glencoe Health Care Facilities,
Pre-refunded @ 100 (RB)
8.500%, 12/01/00 (A) 575 621
Glencoe Hospital,
Callable 08/01/04 @ 102 (RB)
6.750%, 04/01/16 1,100 1,138
MINNESOTA TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Hastings Housing & Redevelopment Authority,
Callable 02/01/03 @ 100 (RB) (MLO)
6.500%, 02/01/14 $ 1,000 $ 1,090
Hawley Independent School District #150,
Series A, Callable 02/01/06 @ 100
(GO) (FSA)
5.750%, 02/01/14 1,500 1,642
Hennepin County, Series A,
Pre-refunded @ 100 (COP) (MLO)
6.650%, 11/15/01 (A) 1,000 1,076
6.750%, 11/15/01 (A) 875 944
6.800%, 11/15/01 (A) 1,750 1,890
Hopkins Multifamily Housing,
Callable 04/01/07 @ 102 (RB)
6.250%, 04/01/15 500 533
Hopkins Elderly Housing, Series A
(RB) (GNMA)
5.600%, 11/20/17 500 516
Lakeville Independent School District #194,
Callable 02/01/09 @ 100 (GO)
5.000%, 02/01/17 1,000 1,003
Litchfield Health Care Facilities,
Pre-refunded @ 102 (RB)
8.750%, 08/01/01 (A) 500 564
Little Canada Commercial Development,
Callable 04/01/03 @ 100 (COP) (MLO)
7.100%, 04/01/13 1,715 1,778
Little Canada Presbyterian Homes,
Callable 07/01/00 @ 102 (RB)
7.000%, 07/01/07 700 720
Maplewood, Mounds Park Academy,
Callable 09/01/03 @ 102 (RB)
7.000%, 09/01/23 1,500 1,594
Metropolitan Council,
Callable 06/01/05 @ 100 (GO)
5.600%, 06/01/15 1,000 1,047
Minneapolis & St. Paul Housing &
Redevelopment Authority, Series A
(RB) (FSA)
5.600%, 08/15/12 250 266
Minneapolis Parking Revenue,
Callable 09/01/05 @ 100 (GO)
5.200%, 03/01/13 400 414
Minneapolis Sports Arena,
Callable 04/01/08 @ 100 (GO)
5.100%, 04/01/13 500 517
5.100%, 10/01/13 250 258
5.125%, 10/01/20 1,000 1,010
Minneapolis Gateway Project,
Callable 12/01/07 @ 100 (RB)
5.250%, 12/01/17 1,000 1,024
Minneapolis Nursing Home Revenue,
Pre-refunded @ 100 (RB)
8.000%, 05/01/01 (A) 250 271
Minneapolis, Refunding Housing Project,
Callable 10/01/11 @ 102 (RB) (FHA)
7.050%, 10/01/22 750 803
Minneapolis, Seward Towers Project,
Callable 12/20/00 @ 102 (RB) (GNMA)
7.375%, 12/20/30 1,370 1,433
Minneapolis, Trinity Housing Project,
Callable 02/01/01 @ 102 (RB)
7.875%, 02/01/06 185 193
8.250%, 02/01/18 2,625 2,723
22 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
MINNESOTA TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Minnesota Agricultural & Economic
Development Board,
Callable 12/01/08 @ 102
(RB) (AMBAC)
5.000%, 12/01/15 $ 900 $ 895
Minnesota Agricultural & Economic
Development Board, Fairview Hospital
Project, Callable 11/15/07 @ 102
(RB) (MBIA)
5.500%, 11/15/11 500 533
Minnesota Agricultural & Economic
Development Board, Fairview Hospital
Project, Series A,
Callable 11/15/07 @ 102 (RB) (MBIA)
5.500%, 11/15/17 1,000 1,048
Minnesota State Higher Education Facilities
Authority, Augsburg College, Series 4-F1,
Callable 05/01/06 @ 102 (RB)
6.250%, 05/01/23 1,500 1,612
Minnesota State Higher Education Facilities
Authority, Callable 03/01/04 @100 (RB)
6.200%, 03/01/14 245 262
6.375%, 03/01/20 140 150
Minnesota State Higher Education Facilities
Authority, Carleton College,
Callable 05/01/06 @ 100 (RB)
5.750%, 11/01/12 1,050 1,131
Minnesota State Higher Education Facilities
Authority, Carleton College,
Callable 11/01/07 @ 100 (RB)
5.250%, 11/01/11 500 524
5.400%, 11/01/15 1,500 1,562
Minnesota State Higher Education Facilities
Authority, Pre-refunded @100 (RB)
6.375%, 03/01/04 (A) 360 397
6.200%, 03/01/04 (A) 655 717
Minnesota State Higher Education Facilities
Authority, University of St. Thomas, Series
4-A1, Callable 10/01/06 @ 100 (RB)
5.625%, 10/01/16 1,500 1,573
5.625%, 10/01/21 500 520
Minnesota State Higher Education Facilities
Authority, University of St. Thomas,
Series 4-M, Callable 04/01/07 @ 100 (RB)
5.375%, 04/01/12 500 521
5.350%, 04/01/17 500 514
Minnesota State Higher Education Facilities
Authority, Vermilion Community College,
Callable 01/01/04 @ 102 (RB)
6.000%, 01/01/13 790 842
Minnesota State Housing Development
Service, Callable 02/01/02 @ 102 (RB)
7.050%, 08/01/27 500 533
Minnesota State Public Facilities Authority,
Water Pollution Control,
Callable 03/01/08 @ 100 (RB)
4.750%, 03/01/18 1,000 977
Minnesota State Public Improvements (GO)
5.000%, 11/01/08 2,000 2,128
Minnesota State Public Improvements,
Callable 11/01/06 @ 100 (GO)
5.250%, 11/01/13 1,500 1,559
MINNESOTA TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Minnesota State, St. John's University Project,
Callable 10/01/07 @ 100 (RB)
5.350%, 10/01/17 $ 1,000 $ 1,030
Minnetonka, Cedar Hills East Project,
Callable 12/01/99 @ 103 (RB)
7.500%, 12/01/27 500 520
Monticello, Big Lake Community Hospital,
Callable 12/01/09 @ 100 (RB)
5.750%, 12/01/19 1,000 996
Moorehead, Series A,
Pre-refunded @ 100 (RB)
7.750%, 12/01/01 (A) 1,165 1,283
New Prague, Queen of Peace Hospital
Project, Callable 12/01/06 @ 100 (RB)
6.500%, 06/01/12 500 518
North Beach Independent School District
#138, Callable 02/01/05 @ 100 (GO)
5.600%, 02/01/13 1,500 1,615
North St. Paul Independent School District
#622, Callable 05/01/06 @ 100 (GO)
5.850%, 05/01/17 500 532
Northern Itasca Hospital District Health
Facilities, Pre-refunded @ 100 (RB)
7.500%, 01/01/00 (A) 50 52
7.750%, 01/01/00 (A) 70 72
7.750%, 01/01/00 (A) 75 77
7.800%, 01/01/00 (A) 85 88
7.900%, 01/01/00 (A) 90 93
8.000%, 01/01/00 (A) 100 103
8.000%, 01/01/00 (A) 105 109
8.000%, 01/01/00 (A) 255 264
Northfield Hospital, Series C,
Callable 12/01/01 @ 100 (RB)
7.000%, 12/01/05 185 192
7.000%, 12/01/06 370 385
7.000%, 12/01/07 405 421
7.000%, 12/01/08 730 759
Olmstead County, Hiawatha Homes Project,
Callable 07/01/03 @ 102 (RB)
6.500%, 07/01/16 205 212
Osseo Independent School District #279,
Series A, Callable 02/01/04 @ 100 (GO)
8.531%, 02/01/14 (B) 3,195 3,602
Plymouth, Mission Farms Nursing Home
Project, Callable 08/01/04 @ 102 (RB)
7.500%, 08/01/14 1,000 1,082
7.500%, 08/01/24 100 108
Red Wing Health Care Facilities Authority,
Callable 09/01/03 @ 102 (RB)
6.400%, 09/01/12 1,000 1,061
Rochester Independent School District #535,
Callable 02/01/06 @ 100 (GO)
5.250%, 02/01/14 1,000 1,033
Rochester Health Care Facilities Authority,
Mayo Foundation, Series A,
Callable 05/15/08 @ 101 (RB)
5.500%, 11/15/27 3,000 3,106
Roseau Area Hospital District,
Callable 10/01/01 @ 100 (RB)
7.200%, 10/01/11 230 239
7.200%, 10/01/12 250 260
7.200%, 10/01/13 250 260
23 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
MINNESOTA TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Roseville, Pre-refunded @ 102 (RB) (MLO)
7.125%, 10/01/03 (A) $ 2,000 $ 2,290
Rushford, Good Sheperd Lutheran Home,
Callable 05/01/99 @ 100 (RB)
9.000%, 11/01/06 200 201
Shakopee Commercial Development (RB)
6.500%, 06/01/99 10 10
6.500%, 12/01/99 15 15
6.750%, 06/01/00 10 10
6.750%, 12/01/00 15 16
7.000%, 06/01/01 15 16
7.000%, 12/01/01 15 16
7.500%, 12/01/07 25 26
Shakopee Commercial Development,
Callable 12/01/00 @ 101 (RB)
7.250%, 06/01/02 15 16
7.250%, 12/01/02 15 16
7.350%, 06/01/03 15 16
7.350%, 12/01/03 15 16
7.350%, 06/01/04 15 16
7.350%, 12/01/04 20 21
7.500%, 06/01/05 15 16
7.500%, 12/01/05 20 21
7.500%, 06/01/06 20 21
7.500%, 12/01/06 20 21
7.500%, 06/01/07 20 21
7.500%, 06/01/08 20 21
7.500%, 12/01/08 25 26
Shakopee Independent School District #7,
Callable 02/01/08 @ 100 (GO)
4.625%, 02/01/15 1,920 1,874
4.625%, 02/01/16 2,250 2,181
South Washington County Independent
School District #833,
Callable 06/01/05 @ 100 (GO) (MLO)
5.850%, 06/01/15 500 544
South Washington County Independent
School District #833,
Callable 12/01/06 @ 100 (COP) (MLO)
5.250%, 12/01/14 500 515
Southern Minnesota Municipal Power Agency,
Callable 01/01/03 @ 102 (RB) (MBIA)
5.000%, 01/01/12 1,000 1,016
5.750%, 01/01/18 850 916
Springfield Health Care, St. John Lutheran
Project, Callable 11/01/99 @ 103 (RB)
8.500%, 11/01/19 250 261
St. Anthony Housing Development Authority,
Callable 05/20/06 @ 102
(RB) (GNMA) (FHA)
6.250%, 11/20/25 1,500 1,590
St. Cloud Hospital Facilities Revenue,
Callable 07/01/06 @ 101 (RB) (AMBAC)
5.000%, 07/01/12 1,000 1,015
5.000%, 07/01/15 2,500 2,503
St. Cloud Housing & Redevelopment
Authority, Pre-refunded @ 102 (RB)
7.500%, 12/01/00 (A) 500 542
St. Cloud, Series A,
Callable 02/01/02 @ 100 (RB)
8.948%, 08/01/13 (B) 5,200 5,824
St. Louis Park Mortgage Loans,
Callable 12/01/05 @ 102 (RB) (FHA)
6.250%, 12/01/28 500 533
MINNESOTA TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000)/SHARES VALUE (000)
- --------------------------------------------------------------------------------
St. Louis Park Multifamily Housing,
Park Ridge Apartments (RB) (GNMA)
5.250%, 11/01/20 $ 500 $ 496
St. Paul Housing & Redevelopment Authority,
Callable 05/15/09 @ 100 (RB)
5.250%, 05/15/18 1,000 960
St. Paul Housing & Redevelopment Authority,
Como Lake Project, Series B (RB) (FHA)
7.500%, 03/01/26 (C) 1,500 1,485
St. Paul Independent School District #625,
Callable 02/01/05 @ 100 (COP) (MLO)
5.250%, 02/01/15 1,000 1,020
Wayzata Independent School District #284,
Callable 02/01/05 @ 100 (GO)
6.000%, 02/01/16 2,000 2,191
Wayzata Independent School District #284,
Callable 02/01/05 @ 100 (GO) (FSA)
5.950%, 02/01/13 1,000 1,085
Wayzata Independent School District,
Series A, Callable 02/01/07 @ 100 (GO)
5.500%, 02/01/17 1,000 1,047
Western Minnesota Municipal Power Agency,
Callable 01/01/06 @ 102 (RB) (AMBAC)
5.400%, 01/01/09 1,000 1,076
5.500%, 01/01/12 1,000 1,066
Western Minnesota Municipal Power Agency,
Callable 07/30/99 @ 100 (RB) (MBIA)
9.750%, 01/01/16 410 631
White Bear Lake Care Center,
Callable 11/01/03 @ 102 (RB)
8.250%, 11/01/12 1,000 1,105
White Bear Lake, Lake Square Housing,
Series A, Callable 02/01/07 @ 102
(RB) (FHA)
6.000%, 08/01/20 1,020 1,078
Worthington, Series A,
Callable 12/01/02 @ 100 (RB)
6.500%, 12/01/10 380 390
6.500%, 12/01/11 410 421
6.500%, 12/01/12 440 452
------------
123,020
------------
TOTAL MUNICIPAL BONDS
(Cost $114,785) 123,020
------------
COMMON STOCK -- 0.4%
CLOSED-END INVESTMENT COMPANIES -- 0.4%
Voyageur Minnesota Municipal Income
Fund 32,100 484
------------
TOTAL COMMON STOCK
(Cost $485) 484
------------
MONEY MARKET FUND -- 4.1%
Federated Minnesota Municipal Cash
Trust 5,365,034 5,365
------------
TOTAL MONEY MARKET FUND
(Cost $5,365) 5,365
------------
TOTAL INVESTMENTS -- 98.2%
(Cost $120,635) 128,869
------------
OTHER ASSETS AND LIABILITIES, NET -- 1.8% 2,352
------------
24 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
MINNESOTA TAX FREE FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital--Class-A
($.0001 par value--2 billion authorized)
based on 10,542,282 outstanding shares $ 109,969
Portfolio Capital--Class-C
($.0001 par value--2 billion authorized)
based on 63,808 outstanding shares 723
Portfolio Capital--Class-Y
($.0001 par value--2 billion authorized)
based on 1,055,546 outstanding shares 11,831
Undistributed net investment income 233
Accumulated net realized gain on investments 231
Net unrealized appreciation of investments 8,234
------------
TOTAL NET ASSETS -- 100.0% $ 131,221
------------
Net asset value and redemption
price per share--Class-A $ 11.25
Maximum sales charge of 2.50% (D) 0.29
------------
Offering price per share--Class-A $ 11.54
------------
Net asset value per share--Class-C (E) $ 11.25
Maximum sales charge of 1.00% (F) 0.11
------------
Offering price per share--Class-C $ 11.36
------------
Net asset value, offering price, and redemption
price per share--Class-Y $ 11.24
------------
(A) Pre-refunded Security--Pre-refunded issues are typically backed by U.S.
Government obligations or municipal bonds. These bonds mature at the call
date indicated. The pre-refunded date is shown as the maturity date on the
Statement of Net Assets.
(B) Inverse Floating Rate Security--security pays interest at rates that
increase (decrease) in the same magnitude as, or in a multiple of, a
decrease (increase) in the market rate paid on a floating rate security. The
interest rate shown is the rate in effect as of March 31, 1999.
(C) Security currently in partial default and is only 93.5% guaranteed. The
effective interest rate is 7.013%.
(D) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 2.50%.
(E) Class-C has a contingent deferred sales charge. For a description of a
possible redemption charge, see the notes to the financial statements.
(F) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%.
AMBAC--American Municipal Bond Assurance Company
COP--Certificate of Participation
FHA--Federal Housing Authority
FSA--Financial Security Assurance
GNMA--Government National Mortgage Association
GO--General Obligation
MBIA--Municipal Bond Insurance Association
MLO--Municipal Lease Obligation
RB--Revenue Bond
The accompanying notes are an integral part of the financial statements.
OREGON INTERMEDIATE TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 98.7%
OREGON -- 97.9%
Baker County Pollution Control,
Callable 07/01/99 @ 100 (RB) (SBA)
5.750%, 07/01/00 $ 285 $ 287
5.850%, 07/01/01 300 301
5.950%, 07/01/02 315 316
6.050%, 07/01/03 335 337
Bear Creek Valley Sanitation Authority,
Callable 10/01/99 @ 100 (GO)
7.200%, 10/01/00 215 219
Beaverton (GO)
5.750%, 04/01/01 860 897
Beaverton Limited Tax, Series B,
Callable 04/01/02 @ 100 (GO)
5.000%, 04/01/03 900 931
Beaverton Water, Callable 06/01/04 @ 100
(RB) (FSA)
6.125%, 06/01/14 1,000 1,097
Chemeketa Community College,
Pre-refunded @ 100 (GO) (FGIC)
5.650%, 06/01/06 (A) 1,000 1,097
Clackamas & Washington Counties School
District #3 (GO) (FGIC)
5.750%, 06/01/09 1,000 1,114
Clackamas & Washington Counties School
District #3, Callable 06/01/07 @ 100
(GO) (FGIC)
5.000%, 06/01/15 1,000 1,009
Clackamas & Washington Counties School
District #3, Callable 10/01/02 @ 101 (GO)
5.650%, 10/01/05 235 249
Clackamas & Washington Counties School
District #3, Pre-refunded @ 100 (GO)
5.600%, 08/01/02 (A) 1,000 1,058
Clackamas County Health Facilities Authority,
Series A, Callable 03/01/02 @ 102
(RB) (MBIA)
5.900%, 03/01/03 885 952
Clackamas County Hospital Revenue, Sisters
Providence, Series A,
Callable 04/01/02 @ 102 (RB)
6.200%, 10/01/02 680 730
Clackamas County School District #12,
Callable 06/01/03 @ 101 (GO)
4.650%, 06/01/04 750 775
4.650%, 06/01/05 1,025 1,058
Clackamas County School District #12,
Callable 06/01/09 @ 100 (GO) (FGIC)
5.250%, 06/01/12 2,000 2,098
Clackamas County School District #7 (GO)
6.600%, 06/15/99 500 504
5.200%, 06/15/04 600 638
Clackamas County Service District #1 (GO)
6.600%, 10/01/99 370 376
Clackamas County Service District #1,
Callable 10/01/06 @ 100 (RB)
6.200%, 10/01/09 700 777
Columbia River Peoples Utility District,
Callable 06/01/06 @ 100 (GO) (AMBAC)
4.375%, 06/01/07 1,245 1,259
25 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
OREGON INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Deschutes & Jefferson Counties School
District #2, Redmond,
Callable 06/01/03 @
100 (GO) (MBIA)
5.400%, 06/01/05 $ 1,000 $ 1,053
Deschutes County,
Callable 12/01/06 @ 100 (GO) (MBIA)
5.250%, 12/01/09 1,000 1,057
Douglas County Hospital Facilities Authority,
Catholic Health, Series B, (RB) (MBIA)
5.500%, 11/15/04 505 544
Emerald Peoples Utility District (RB) (FGIC)
7.200%, 11/01/02 1,235 1,377
Emerald Peoples Utility District, Series B,
Escrowed To Maturity (RB) (AMBAC)
7.000%, 11/01/99 630 644
Eugene Electric Utilities,
Callable 08/01/07 @ 100 (RB) (FSA)
5.000%, 08/01/11 1,305 1,342
Eugene Electric Utilities,
Callable 08/01/08 @ 100 (RB) (FSA)
4.800%, 08/01/13 1,190 1,194
Eugene Electric Utilities, Continuously
Callable @ 100 (RB)
6.650%, 09/01/00 1,200 1,203
Eugene Electric Utilities, Series B,
Callable 02/01/00 @ 101 (RB) (MBIA)
4.750%, 08/01/12 670 671
4.950%, 08/01/14 475 476
Eugene Public Safety Facilities,
Callable 06/01/06 @ 100 (GO) (FGIC)
5.700%, 06/01/16 1,295 1,369
Grants Pass, Callable 06/01/99 @ 100
(GO) (AMBAC)
5.850%, 06/01/00 1,000 1,004
Gresham Sewer (RB)
4.950%, 06/01/02 615 637
Gresham Sewer, Callable 06/01/02
@ 102 (RB)
5.250%, 06/01/05 500 526
Jackson County School District # 549-C
(GO) (FSA)
6.000%, 06/01/05 1,125 1,246
Josephine County School District #7
(GO) (FGIC)
5.750%, 06/01/06 1,525 1,679
Lane County Community College (GO)
5.000%, 06/01/01 1,000 1,031
Lane County Metropolitan
Waste & Water Service (GO)
5.100%, 09/01/00 660 676
Lincoln City School District (GO) (FGIC)
5.500%, 06/15/04 2,095 2,252
6.000%, 06/15/06 1,055 1,178
Lincoln City, Callable 07/01/99 @ 100
(GO) (AMBAC)
5.750%, 07/01/01 500 503
Lincoln City, Series A,
Callable 08/01/99 @ 100 (GO) (AMBAC)
5.000%, 02/01/03 305 306
Marion & Polk Counties School
District #24-J, Pre-refunded @ 100
(GO)
5.600%, 10/01/02 (A) 635 675
5.700%, 10/01/02 (A) 660 703
5.800%, 10/01/02 (A) 715 764
OREGON INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Marion County Office Building Facility,
Called 05/01/99 @ 100 (COP) (MLO)
10.000%, 05/01/99 $ 365 $ 367
Marion County School District #7-J,
Callable 06/01/04 @ 101 (GO) (FSA)
5.600%, 06/01/06 860 926
Marion County Solid Waste & Electric,
Ogden Martin System Project
(RB) (AMBAC)
5.100%, 10/01/02 1,000 1,045
5.500%, 10/01/06 1,400 1,521
Medford Hospital Facilities Authority,
Asante Health Systems,
Callable 08/15/09 @ 100 (RB) (MBIA)
5.250%, 08/15/11 1,000 1,041
5.375%, 08/15/12 1,000 1,047
Medford Hospital Facilities Authority,
Escrowed to Maturity (RB) (MBIA)
6.300%, 12/01/99 400 408
Medford Hospital Facilities Authority,
Pre-refunded @ 102 (RB) (MBIA)
6.600%, 12/01/00 (A) 300 322
Metropolitan Open Spaces Program,
Series A, Callable 09/01/03 @ 102 (GO)
5.000%, 09/01/04 1,275 1,343
Metropolitan Open Spaces Program,
Series C, Callable 09/01/03 @ 102 (GO)
5.250%, 09/01/13 1,000 1,035
Metropolitan Service District, Oregon
Convention Center Project,
Callable 01/01/00 @ 102 (GO)
6.000%, 07/01/02 1,300 1,351
Metropolitan Service District, Oregon
Convention Center Project, Series A,
Callable 01/01/00 @ 102 (GO)
6.250%, 01/01/13 500 520
Metropolitan Service District, Waste Disposal,
Continuously Callable (RB)
6.950%, 01/01/00 935 961
Metropolitan Service District, Waste Disposal
(RB)
6.850%, 07/01/99 540 545
Metropolitan, Washington Park Zoo,
Series A (GO)
5.000%, 01/15/02 1,040 1,076
5.000%, 01/15/03 1,095 1,142
6.000%, 01/15/05 1,215 1,338
Metropolitan, Washington Park Zoo, Series A,
Callable 01/15/07 @ 100 (GO)
5.250%, 01/15/10 1,000 1,049
Morrow County School District #1 (GO) (MBIA)
5.500%, 06/01/04 795 854
5.500%, 06/01/05 835 902
Multnomah County,
Callable 04/01/09 @ 100 (GO)
4.300%, 10/01/11 1,500 1,458
4.500%, 10/01/13 2,000 1,948
Multnomah County, Callable 08/01/08 @ 101
(COP) (MLO)
4.750%, 08/01/11 2,200 2,221
Multnomah County Health Facilities Lease,
Series A, Callable 07/01/03 @ 101
(COP) (MLO)
5.100%, 07/01/04 925 976
26 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
OREGON INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Multnomah County Juvenile Justice Project,
Series A, Pre-refunded @ 101
(COP) (MLO)
5.700%, 08/01/02 (A) $ 675 $ 722
Multnomah County, University of Portland
Educational Facilities,
Callable 04/01/07 @ 102 (RB) (AMBAC)
5.750%, 04/01/10 2,245 2,470
Multnomah County School District #1 (GO)
4.250%, 06/01/03 1,000 1,019
Multnomah County School District #3,
Callable 12/01/05 @ 100 (GO) (FGIC)
5.600%, 12/01/07 780 842
Multnomah County School District #4 (GO)
5.500%, 01/01/02 910 953
Multnomah County School District #4,
Callable 01/01/02 @ 100 (GO)
5.800%, 01/01/04 1,400 1,474
Multnomah County School District #7
(GO) (AMBAC)
5.875%, 06/01/02 1,000 1,065
5.500%, 06/01/06 1,000 1,085
Multnomah County School District #40 (GO)
5.250%, 06/01/04 1,000 1,062
Northern Wasco County, Hydroelectric Utility,
McNary Dam Fishway Project,
Callable 12/01/03 @ 102 (RB)
4.750%, 12/01/06 470 487
Oregon State (GO)
6.000%, 08/01/02 2,100 2,253
6.000%, 02/01/03 1,000 1,080
Oregon State Alternative Energy, Private Act,
Callable 07/01/04 @ 100 (GO)
5.300%, 07/01/05 900 957
Oregon State Board of Higher Education,
Series B, Callable 10/15/02 @ 100 (GO)
6.250%, 10/15/12 1,375 1,477
Oregon State Department of Administrative
Services, Callable 11/01/05 @ 101
(COP) (MLO) (MBIA)
5.000%, 11/01/06 1,350 1,427
Oregon State Department of Administrative
Services, Callable 11/01/07 @ 101
(COP) (MLO) (AMBAC)
5.000%, 11/01/11 840 864
Oregon State Department of Administrative
Services, Series A,
Callable 05/01/09 @ 101
(COP) (AMBAC)
5.000%, 05/01/14 1,000 1,014
Oregon State Department of Administrative
Services, Series C,
Callable 05/01/06 @ 101
(COP) (MLO) (MBIA)
5.750%, 05/01/07 1,635 1,799
Oregon State Department of General
Services, Series F, Escrowed to Maturity
(COP) (MLO) (AMBAC)
6.800%, 09/01/99 1,000 1,015
Oregon State Department of Transportation,
Regional Light Rail Fund,
Callable 06/01/04 @ 102 (RB) (MBIA)
6.000%, 06/01/05 2,000 2,207
OREGON INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Oregon State Economic Development
Department, Callable 01/01/02 @ 102
(RB)
4.850%, 01/01/04 $ 555 $ 578
Oregon State Economic Development
Department, Series A,
Callable 01/01/06 @ 102 (RB) (MBIA)
5.000%, 01/01/11 500 515
Oregon State Equipment Finance Program,
Series I (COP) (MLO) (MBIA)
5.050%, 11/01/99 735 743
Oregon State Fair & Exposition Center,
10/01/01 @ 103 (RB)
5.400%, 10/01/06 1,010 1,065
Oregon State Health, Housing, Educational
& Cultural Facilities, George Fox University,
Series A, Callable 03/01/07 @ 102 (RB)
5.400%, 03/01/09 395 421
5.450%, 03/01/10 415 441
Oregon State Health, Housing, Educational &
Cultural Facilities, Lewis & Clark College
(RB) (MBIA)
5.250%, 10/01/02 550 578
5.300%, 10/01/03 630 669
Oregon State Health, Housing, Educational &
Cultural Facilities, Reed College, Series A,
Callable 07/01/06 @ 102 (RB)
5.375%, 07/01/15 2,000 2,064
Oregon State Health Sciences, Zero Coupon
Bond (RB) (MBIA)
5.180%, 07/01/21 (B) 12,065 3,888
Oregon State Housing & Community Services,
Callable 07/01/03 @ 102 (RB)
5.750%, 07/01/12 1,500 1,556
Oregon State Housing & Community Services,
Series A, Callable 07/01/04 @ 102 (RB)
6.400%, 07/01/18 1,210 1,288
Oregon State Housing & Community Services,
Single Family Mortgages, Series A,
Callable 07/01/03 @ 102 (RB)
4.900%, 07/01/05 1,075 1,102
Oregon State Housing & Community Services,
Single Family Mortgages, Series A,
Callable 07/01/06 @ 102 (RB)
6.000%, 07/01/16 1,200 1,281
Oregon State Housing & Community Services,
Single Family Mortgages, Series B,
Callable 07/01/03 @ 102 (RB)
5.100%, 07/01/07 445 457
Oregon State Pollution Control,
Callable 11/01/07 @ 100 (GO)
4.875%, 11/01/11 455 465
Oregon State Pollution Control, Series C,
Callable 06/01/03 @ 100 (GO)
5.625%, 06/01/13 540 558
Polk, Marion & Benton Counties School
District #13-J (GO) (FGIC)
5.500%, 12/01/03 955 1,025
Polk, Marion & Benton Counties School
District #13-J, Callable 12/01/04 @ 101
(GO) (FGIC)
5.500%, 12/01/05 570 617
27 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
OREGON INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Port Morrow Pollution Control,
Pre-refunded @ 100 (RB)
6.375%, 04/01/02 (A) $ 1,050 $ 1,130
Port of St. Helens Pollution Control,
Portland General Electric, Series A (RB)
4.800%, 04/01/10 2,500 2,524
Port Portland Airport, Series 12-A,
Callable 01/01/09 @ 101 (RB) (FGIC)
5.250%, 07/01/12 1,000 1,050
Port Portland Airport, Series 7-A,
Escrowed to Maturity (RB) (MBIA)
6.125%, 07/01/00 270 279
6.200%, 07/01/01 170 180
Port Portland Airport, Series 7-A,
Pre-refunded @ 101 (RB) (MBIA)
6.500%, 07/01/01 (A) 175 188
6.500%, 07/01/01 (A) 325 349
Port Portland Airport, Series 7-A,
Escrowed to Maturity (RB) (MBIA)
6.125%, 07/01/00 530 548
6.200%, 07/01/01 330 348
Port Portland Airport, Series 9-A,
Callable 07/01/01 @ 102 (RB) (FGIC)
5.400%, 07/01/04 1,775 1,864
Port Portland, Series A (GO)
4.500%, 03/01/06 1,000 1,023
Portland Community College District,
Callable 07/01/07 @ 101 (GO) (AMBAC)
5.500%, 07/01/10 2,850 3,070
Portland Community College District,
Series A, Pre-refunded @ 100 (GO)
6.000%, 07/01/02 (A) 1,500 1,604
Portland Housing Authority,
Callable 01/01/09 @ 100 (RB)
5.000%, 01/01/19 3,000 2,952
5.100%, 01/01/27 1,000 990
Portland Housing Authority, Riverwood
Project, Pre-refunded @ 100 (RB)
6.000%, 01/01/06 (A) 1,170 1,294
Portland Sewer Systems,
Callable 06/01/07 @ 100 (RB) (FGIC)
5.000%, 06/01/09 2,250 2,348
Portland Sewer Systems,
Pre-refunded @ 101 (RB)
6.150%, 06/01/04 (A) 1,000 1,108
Portland Sewer Systems, Series A (RB)
5.550%, 06/01/04 1,085 1,167
Portland Sewer Systems, Series B,
Callable 04/01/02 @ 102 (RB)
5.500%, 04/01/04 600 638
Portland Sewer Systems,
Callable 06/01/07 @ 100 (RB) (FGIC)
5.000%, 06/01/08 2,000 2,100
5.000%, 06/01/15 2,000 2,017
Portland, Series C,
Callable 06/01/99 @ 100 (GO)
5.500%, 12/01/00 250 251
Salem Educational Facilities,
Willamette University (RB)
5.500%, 04/01/04 500 536
Salem Educational Facilities, Willamette
University, Callable 04/01/04 @ 101 (RB)
5.700%, 04/01/05 500 542
OREGON INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Salem Hospital Facilities Authority,
Callable 08/15/10 @ 100 (RB)
5.250%, 08/15/14 $ 2,375 $ 2,436
Salem Water & Sewer (RB) (MBIA)
6.000%, 06/01/06 1,135 1,266
Salem Water & Sewer,
Callable 06/01/06 @ 100 (RB) (MBIA)
5.500%, 06/01/11 1,000 1,071
Salem, Series A, Pre-refunded @ 101 (GO)
5.600%, 01/01/01 (A) 1,410 1,466
Salem-Keizer School District #24-J,
Callable 06/01/08 @ 100 (GO) (FSA)
5.100%, 06/01/12 2,000 2,067
Tri-County Metropolitan Transportation District,
Series A, Pre-refunded @ 101 (GO)
5.600%, 07/01/02 (A) 2,000 2,132
5.700%, 07/01/02 (A) 1,450 1,550
5.800%, 07/01/02 (A) 1,310 1,404
Tri-County Metropolitan Transportation District,
Series A, Callable 07/01/09 @ 101 (GO)
5.250%, 07/01/12 1,000 1,051
Tri-County Metropolitan Transportation District,
Series A, Callable 08/01/02 @ 101 (RB)
5.450%, 08/01/04 1,000 1,055
Tri-County Service District (GO)
5.000%, 09/01/02 1,570 1,622
Tualatin Hills Park & Recreational District
(GO) (FGIC)
5.750%, 03/01/13 870 964
Tualatin Valley Water District,
Callable 06/01/08 @ 100 (RB) (FSA)
5.000%, 06/01/12 1,000 1,025
Tualatin Valley Water District, Wolf Creek,
Series A, Callable 12/01/03 @ 100 (RB)
4.700%, 12/01/04 1,140 1,179
Washington & Clackamas Counties
School District #23-J (GO) (FGIC)
5.750%, 06/01/06 1,055 1,161
Washington & Clackamas Counties
School District #23-J, Zero Coupon Bond
(GO)
4.700%, 06/01/11 (B) (C) 435 247
Washington County (GO)
5.850%, 12/01/01 685 726
Washington County Criminal Justice Facilities,
Pre-refunded @ 100 (GO)
5.625%, 12/01/04 (A) 850 924
6.000%, 12/01/04 (A) 1,000 1,106
Washington County School District #1-J (GO)
5.000%, 11/01/13 1,375 1,421
5.000%, 11/01/14 1,000 1,030
Washington County School
District #3 (GO) (MBIA)
5.750%, 11/01/04 800 874
Washington County School District #15,
Pre-refunded @ 101 (GO) (FGIC)
5.800%, 06/01/04 (A) 575 631
Washington County School
District #48-J (GO)
5.900%, 09/01/01 1,065 1,124
Washington County School District #48-J,
Series B, Callable 06/01/00 @ 100 (GO)
5.700%, 06/01/02 780 801
28 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
OREGON INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000)/SHARES VALUE (000)
- --------------------------------------------------------------------------------
Washington County School
District #88-J (GO) (FSA)
5.125%, 06/15/11 $ 980 $ 1,021
Washington County School District #88-J,
Callable 06/01/05 @ 100 (GO) (FSA)
5.700%, 06/01/06 1,000 1,086
Washington County Unified Sewerage
Agency (RB) (FGIC)
5.750%, 10/01/08 1,000 1,114
Washington County Unified Sewerage
Agency, Callable 10/01/06 @ 101
(RB) (FGIC)
5.200%, 10/01/09 1,300 1,378
Washington County Unified Sewerage
Agency, Series 1 (RB) (AMBAC)
5.700%, 10/01/04 1,250 1,360
Washington County Unified Sewerage
Agency, Series 1,
Pre-refunded @ 100 (RB) (AMBAC)
5.800%, 10/01/04 (A) 2,000 2,188
Washington, Multnomah & Yamhill Counties
School District #1-J,
Callable 06/01/09 @ 100 (GO)
5.250%, 06/01/12 1,185 1,241
Washington, Multnomah & Yamhill
Counties School District #1-J,
Callable 11/01/08 @ 100 (GO)
5.250%, 11/01/09 2,060 2,202
Wilsonville, Callable 07/01/99 @ 100 (GO)
7.000%, 01/01/00 190 192
7.100%, 01/01/01 200 202
7.200%, 01/01/02 215 217
7.300%, 01/01/03 235 237
Wilsonville, Callable 06/01/08 @ 100 (GO)
5.000%, 12/01/10 1,325 1,352
Yamhill County School District #29-J,
Callable 06/01/04 @ 101 (GO) (FSA)
5.600%, 06/01/06 630 678
Yamhill County School District #40 (GO) (FGIC)
6.000%, 06/01/08 600 677
------------
187,746
------------
PUERTO RICO -- 0.8%
Puerto Rico Commonwealth (GO) (MBIA)
6.250%, 07/01/08 1,250 1,442
------------
TOTAL MUNICIPAL BONDS
(Cost $182,537) 189,188
------------
RELATED PARTY MONEY MARKET FUND -- 0.5%
First American Tax Free Obligations
Fund (D) 1,047,761 1,048
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $1,048) 1,048
------------
TOTAL INVESTMENTS -- 99.2%
(Cost $183,585) 190,236
------------
OTHER ASSETS AND LIABILITIES, NET -- 0.8% 1,522
------------
OREGON INTERMEDIATE TAX FREE FUND
(CONCLUDED)
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital--Class-A
($.0001 par value--2 billion authorized)
based on 87,035 outstanding shares $ 883
Portfolio Capital--Class-Y
($.0001 par value--2 billion authorized)
based on 18,930,595 outstanding shares 184,054
Distributions in excess of net investment income (6)
Accumulated net realized gain on investments 176
Net unrealized appreciation of investments 6,651
------------
TOTAL NET ASSETS -- 100.0% $ 191,758
------------
Net asset value and redemption
price per share--Class-A $ 10.08
Maximum sales charge of 2.50% (E) 0.26
------------
Offering price per share--Class-A $ 10.34
------------
Net asset value, offering price, and redemption
price per share--Class-Y $ 10.08
------------
(A) Pre-refunded Security--Pre-refunded issues are typically backed by U.S.
Government obligations or municipal bonds. These bonds mature at the call
date indicated. The pre-refunded date is shown as the maturity date on the
Statement of Net Assets.
(B) The rate shown is the effective yield at time of purchase.
(C) At March 31, 1999, the cost of securities purchased on a when- issued basis
was: Washington & Clackamas Counties, School District #23-J, $247,341.
(D) This money market fund is advised by U.S. Bank National Association who also
serves as Advisor for this Fund. See also the notes to the financial
statements.
(E) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 2.50%.
AMBAC--American Municipal Bond Assurance Company
COP--Certificate of Participation
FGIC--Financial Guaranty Insurance Corporation
FSA--Financial Security Assurance
GO--General Obligation
MBIA--Municipal Bond Insurance Association
MLO--Municipal Lease Obligation
RB--Revenue Bond
SBA--Small Business Administration
The accompanying notes are an integral part of the financial statements.
29 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 91.1%
ALASKA -- 2.3%
Alaska State Housing Finance Authority,
Series A, Callable 06/01/07 @ 102
(RB) (MBIA)
5.900%, 12/01/19 $ 1,000 $ 1,052
------------
COLORADO -- 2.5%
Montrose County Health Care,
Callable 11/01/02 @ 102 (RB)
8.250%, 11/01/19 1,000 1,161
------------
FLORIDA -- 0.7%
Clay County Development Authority, Cargill
Project, Callable 03/01/02 @ 102 (GO)
6.400%, 03/01/11 300 323
------------
ILLINOIS -- 17.4%
Chicago, O' Hare Airport Project, Series A,
Callable 09/01/09 @ 101 (RB)
5.350%, 09/01/16 1,000 993
Illinois State Development Finance Authority,
Pollution Control, Series A,
Callable 07/01/06 @ 102 (RB)
7.375%, 07/01/21 500 578
Illinois State Educational Facilities
Authority, Augustana College,
Callable 10/01/07 @ 100 (RB) (CLE)
5.875%, 10/01/17 500 531
Illinois State Educational Facilities
Authority, Augustana College,
Callable 10/01/08 @ 100 (RB)
5.250%, 10/01/18 1,000 970
Illinois State Health Facilities Authority,
Alexian Brothers Health System,
Callable 1/01/09 @ 101 (RB)
5.000%, 01/01/19 500 488
Illinois State Health Facilities Authority,
Series A, Pre-refunded @ 102 (RB) (MBIA)
9.970%, 06/07/02 (A) (B) 1,000 1,189
Illinois State Toll Highway Authority,
Series A (RB)
6.300%, 01/01/12 1,000 1,156
Illinois State University Improvements,
Callable 02/01/02 @ 100 (COP) (MLO)
7.550%, 02/01/16 110 121
7.600%, 02/01/17 115 126
7.700%, 02/01/20 100 110
7.700%, 02/01/22 100 110
Rock Island, Friendship Manor Project (RB)
7.000%, 06/01/06 1,100 1,161
Rock Island, Friendship Manor Project,
Callable 06/01/03 @ 102 (RB)
7.200%, 06/01/13 400 423
------------
7,956
------------
INDIANA -- 9.3%
Hammond Multiple School Building, Series B,
Escrowed to Maturity (RB) (MLO)
6.000%, 01/15/13 1,000 1,121
Indiana State Municipal Power Agency,
Power Supply (RB) (MBIA)
6.000%, 01/01/11 1,000 1,124
TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Indiana State Municipal Power Agency,
Power Supply, Series B (RB) (MBIA)
6.000%, 01/01/12 $ 1,000 $ 1,127
Lake County Redvelopment Authority
(RB) (MLO) (MBIA)
6.500%, 02/01/16 800 894
------------
4,266
------------
MICHIGAN -- 4.6%
Detroit Tax Increment, Series A,
Callable 05/01/07 @ 101.5 (RB)
5.375%, 05/01/18 1,500 1,530
Lakeview Community Schools (GO) (FGIC)
5.750%, 05/01/16 500 553
------------
2,083
------------
MINNESOTA -- 15.2%
Brooklyn Center Health Care Facilitiy,
Callable 12/01/03 @ 102 (RB)
7.600%, 12/01/18 400 429
Fergus Falls Health Care Facilities Authority,
Series A, Callable 11/01/04 @ 102 (RB)
7.000%, 11/01/19 500 527
Glencoe Hospital Board,
Callable 08/01/04 @ 102 (RB)
6.750%, 04/01/16 485 502
Hopkins, Multifamily Housing Renaissance
Project, Callable 04/01/07 @102 (RB)
6.250%, 04/01/15 500 533
Plymouth, Mission Farms Nursing Home
Project, Callable 08/01/04 @ 102 (RB)
7.500%, 08/01/24 500 541
Rochester Health Care Facilities Authority,
Series A, Callable 11/15/02 @ 104 (RB)
8.448%, 11/15/15 (B) 1,000 1,150
Roseville Housing Facilities Authority,
Pre-refunded @ 102 (RB)
7.125%, 10/01/03 (A) 1,000 1,145
St. Anthony Housing & Redevelopment
Authority, Callable 05/20/06 @ 102
(RB) (GNMA) (FHA)
6.250%, 11/20/25 1,000 1,060
St. Paul Housing & Redevelopment Authority,
Como Lake Project, Series B (RB) (FHA)
7.500%, 03/01/26 (C) 500 495
White Bear Lake Care Center,
Callable 11/01/03 @ 102 (RB)
8.250%, 11/01/12 500 552
------------
6,934
------------
MONTANA -- 0.6%
Sidney Nursing Home,
Callable 06/01/00 @ 102 (RB)
9.000%, 06/01/11 250 263
------------
NEW MEXICO -- 6.7%
New Mexico State Finance Authority,
Mortgage Backed Securities (RB) (GNMA)
6.400%, 07/01/15 755 769
New Mexico State Finance Authority, Mortgage
Backed Securities, Series D (RB)
6.200%, 07/01/15 2,150 2,308
------------
3,077
------------
30 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
NORTH DAKOTA -- 8.9%
Mercer County Pollution Control, Antelope
Valley Station (RB) (AMBAC)
7.200%, 06/30/13 $ 3,300 $ 4,079
------------
SOUTH DAKOTA -- 2.4%
South Dakota State Health & Educational
Facilities Authority,
Callable 07/01/06 @ 102 (RB) (MBIA)
6.000%, 07/01/14 1,000 1,090
------------
TEXAS -- 5.0%
Fort Bend Independent School District,
Callable 02/15/05 @ 100 (GO)
5.000%, 02/15/14 500 504
Harts Bluff School District (COP)
8.800%, 11/15/00 50 50
Houston Employment Community
(RB) (COP) (MLO)
8.100%, 08/01/01 25 26
8.150%, 02/01/02 35 36
8.150%, 08/01/02 35 36
8.200%, 02/01/03 35 36
8.200%, 08/01/03 35 36
8.250%, 08/01/04 40 41
8.300%, 02/01/05 40 41
8.300%, 08/01/05 45 47
8.350%, 02/01/06 20 21
8.350%, 08/01/06 50 52
8.400%, 08/01/07 25 26
8.450%, 08/01/08 55 57
Houston Employment Community, Emnora
Lane Project (COP) (MLO)
7.850%, 05/01/04 10 10
7.850%, 11/01/04 25 25
7.900%, 05/01/05 25 25
7.900%, 11/01/05 25 25
8.000%, 11/01/06 30 31
8.050%, 05/01/07 20 20
North Central Health Facility, Series A,
Pre-refunded @ 104 (RB) (MBIA)
9.707%, 06/19/01 (A) (B) 1,000 1,159
------------
2,304
------------
UTAH -- 3.2%
Carbon County Roads Project,
Pre-refunded @ 100 (RB)
7.900%, 08/01/99 (A) 300 305
Intermountain Power Agency, Power Supply,
Series A (RB) (AMBAC)
6.500%, 07/01/11 1,000 1,174
------------
1,479
------------
WASHINGTON -- 1.6%
Washington State Public Power Supply (RB)
7.125%, 07/01/16 600 751
------------
WEST VIRGINIA -- 2.6%
West Virginia State, Series D (GO) (FGIC)
6.500%, 11/01/26 1,000 1,185
------------
TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000)/SHARES VALUE (000)
- --------------------------------------------------------------------------------
WISCONSIN -- 8.1%
Dallas, Nursing Home Project,
Callable 05/01/03 @ 102 (RB) (FHA)
6.250%, 05/01/19 $ 1,015 $ 1,036
Watertown Community Development
Authority, Callable 03/01/00 @ 103 (RB)
8.500%, 03/01/19 95 100
Wisconsin State Health & Educational
Facilities Authority, Monroe Clinic,
Callable 02/15/09 @ 101 (RB)
5.375%, 02/15/22 500 489
Wisconsin State Health & Educational
Facilities Authority, Aurora Health Care,
Callable 02/15/09 @ 101 (RB)
5.500%, 02/15/20 1,000 984
Wisconsin State Health & Educational
Facilities Authority, Franciscan Skemp
Medical Center (RB)
6.125%, 11/15/15 1,000 1,085
------------
3,694
------------
TOTAL MUNICIPAL BONDS
(Cost $38,440) 41,697
------------
COMMON STOCKS -- 3.9%
CLOSED-END INVESTMENT COMPANIES -- 3.9%
Blackrock Insured Municipal Term Trust 13,900 162
Blackrock Municipal Target Trust 25,000 273
Morgan Stanley Dean Winter Insured
Municipal Income Trust 20,600 305
Van Kampen Municipal Trust 5,700 957
Van Kampen Strategy Sector
Municipal Trust 58,700 78
------------
1,775
------------
TOTAL COMMON STOCKS
(Cost $1,768) 1,775
------------
RELATED PARTY MONEY MARKET FUND -- 4.7%
First American Tax Free Obligations
Fund (D) 2,149,660 2,150
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $2,150) 2,150
------------
MONEY MARKET FUND -- 0.8%
Federated Tax Free Money Market 374,666 375
------------
TOTAL MONEY MARKET FUND
(Cost $375) 375
------------
TOTAL INVESTMENTS -- 100.5%
(Cost $42,733) 45,997
------------
OTHER ASSETS AND LIABILITIES, NET -- (0.5%) (215)
------------
31 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
TAX FREE FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital--Class-A
($.0001 par value--2 billion authorized)
based on 3,414,932 outstanding shares $ 34,871
Portfolio Capital--Class-C
($.0001 par value--2 billion authorized)
based on 3,183 outstanding shares 36
Portfolio Capital--Class-Y
($.0001 par value--2 billion authorized)
based on 661,630 outstanding shares 7,496
Undistributed net investment income 75
Accumulated net realized gain on investments 40
Net unrealized appreciation of investments 3,264
------------
TOTAL NET ASSETS -- 100.0% $ 45,782
------------
Net asset value and redemption
price per share--Class-A $ 11.22
Maximum sales charge of 2.50% (E) 0.29
------------
Offering price per share--Class-A $ 11.51
------------
Net asset value per share--Class-C (F) $ 11.21
Maximum sales charge of 1.00% (G) 0.11
------------
Offering price per share--Class-C $ 11.32
------------
Net asset value, offering price, and redemption
price per share--Class-Y $ 11.23
------------
(A) Pre-refunded Security--Pre-refunded issues are typically backed by U.S.
Government Obligations. These bonds mature at the call date indicated. The
pre-refunded date is shown as the maturity date on the Statement of Net
Assets.
(B) Inverse Floating Rate Security--security pays interest at rates that
increase (decrease) in the same magnitude as, or in a multiple of, a
decrease (increase) in the market rate paid on a floating rate security. The
interest rate shown is the rate in effect as of March 31, 1999.
(C) Security currently in partial default and is only 93.5% guaranteed. The
effective interest rate is 7.013%.
(D) This money market fund is advised by U.S. Bank National Association who also
serves as Advisor for this Fund. See also the notes to the financial
statements.
(E) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 2.50%.
(F) Class-C has a contingent deferred sales charge. For a description of a
possible redemption charge, see the notes to the financial statements.
(G) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%.
AMBAC--American Municipal Bond Assurance Company
CLE--Connie Lee
COP--Certificates of Participation
FGIC--Financial Guaranty Insurance Corporation
FHA--Federal Housing Authority
GNMA--Government National Mortgage Association
GO--General Obligation
MBIA--Municipal Bond Insurance Association
MLO--Municipal Lease Obligation RB--Revenue Bond
The accompanying notes are an integral part of the financial statements.
32 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
(THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY.)
33 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
OPERATIONS FOR THE SIX MONTHS ENDED MARCH 31, 1999, (UNAUDITED) IN THOUSANDS
<TABLE>
<CAPTION>
CALIFORNIA INTERMEDIATE COLORADO INTERMEDIATE INTERMEDIATE
TAX FREE FUND TAX FREE FUND TAX FREE FUND
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 935 $ 1,602 $ 11,808
Dividends -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 935 1,602 11,808
===============================================================================================================================
EXPENSES:
Investment advisory fees 138 225 1,668
Less: Waiver of investment advisory fees (45) (86) (392)
Administrator fees 22 35 260
Transfer agent fees 13 30 20
Custodian fees 6 10 72
Directors' fees -- 1 5
Registration fees 1 6 11
Professional fees 1 1 6
Printing 1 2 14
Distribution fees - class-A -- 5 14
Less: Waiver of distribution fees - class-A -- (5) (14)
Distribution fees - class-C -- -- --
Other 1 1 4
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 138 225 1,668
===============================================================================================================================
INVESTMENT INCOME - NET 797 1,377 10,140
===============================================================================================================================
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS - NET:
Net realized gain (loss) on investments (1) 163 102
Net change in unrealized depreciation of investments (424) (1,194) (6,244)
- -------------------------------------------------------------------------------------------------------------------------------
NET GAIN (LOSS) ON INVESTMENTS (425) (1,031) (6,142)
===============================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $ 372 $ 346 $ 3,998
===============================================================================================================================
</TABLE>
The accompanying notes are an integral part of the financial statements.
34 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
<TABLE>
<CAPTION>
MINNESOTA
INTERMEDIATE MINNESOTA OREGON INTERMEDIATE
TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 7,985 $ 3,763 $ 4,707 $ 1,277
-- 2 -- 2
- -------------------------------------------------------------------------------------------
7,985 3,765 4,707 1,279
===========================================================================================
1,138 448 665 147
(279) (118) (165) (31)
177 70 104 23
17 14 16 13
49 19 28 6
3 1 2 --
15 6 5 5
4 2 2 1
10 4 6 1
14 147 -- 49
(14) -- -- --
-- 1 -- --
4 1 2 2
- -------------------------------------------------------------------------------------------
1,138 595 665 216
===========================================================================================
6,847 3,170 4,042 1,063
===========================================================================================
146 233 179 41
(3,590) (1,888) (2,573) (772)
- -------------------------------------------------------------------------------------------
(3,444) (1,655) (2,394) (731)
===========================================================================================
$ 3,403 $ 1,515 $ 1,648 $ 332
===========================================================================================
</TABLE>
35 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
CHANGES IN NET ASSETS IN THOUSANDS
<TABLE>
<CAPTION>
CALIFORNIA INTERMEDIATE COLORADO INTERMEDIATE INTERMEDIATE
TAX FREE FUND TAX FREE FUND TAX FREE FUND
- -----------------------------------------------------------------------------------------------------------------------------------
10/1/98 10/1/97 10/1/98 10/1/97 10/1/98 10/1/97
to to to to to to
3/31/99 9/30/98 3/31/99 9/30/98 3/31/99 9/30/98
(unaudited) (unaudited) (unaudited)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Investment income - net $ 797 $ 1,489 $ 1,377 $ 2,669 $ 10,140 $ 19,437
Net realized gain (loss) on investments (1) 103 163 79 102 2,358
Net change in unrealized appreciation (depreciation) of investments (424) 1,040 (1,194) 1,563 (6,244) 9,075
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 372 2,632 346 4,311 3,998 30,870
- -----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class-A (7) -- (85) (181) (233) (301)
Class-C -- -- -- -- -- --
Class-Y (794) (1,484) (1,298) (2,484) (9,960) (19,134)
Net realized gain on investments:
Class-A (1) -- (8) (7) (53) (31)
Class-C -- -- -- -- -- --
Class-Y (102) (6) (110) (84) (2,305) (2,516)
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS (904) (1,490) (1,501) (2,756) (12,551) (21,982)
===================================================================================================================================
CAPITAL SHARE TRANSACTIONS (1):
Class-A:
Proceeds from sales 1,074 78 345 2,052 5,623 8,876
Reinvestment of distributions 4 -- 58 114 143 152
Payments for redemptions (460) -- (678) (2,165) (3,003) (3,834)
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class-A transactions 618 78 (275) 1 2,763 5,194
- -----------------------------------------------------------------------------------------------------------------------------------
Class-C:
Proceeds from sales -- -- -- -- -- --
Reinvestment of distributions -- -- -- -- -- --
Payments for redemptions -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from
Class-C transactions -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Class-Y:
Proceeds from sales 9,260 8,085 6,921 12,182 49,947 85,034
Reinvestment of distributions 9 24 11 20 1,168 2,792
Payments for redemptions (3,179) (5,260) (4,708) (8,391) (35,370) (66,846)
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class-Y transactions 6,090 2,849 2,224 3,811 15,745 20,980
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
capital share transactions 6,708 2,927 1,949 3,812 18,508 26,174
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 6,176 4,069 794 5,367 9,955 35,062
NET ASSETS AT BEGINNING OF PERIOD 37,357 33,288 63,932 58,565 469,910 434,848
===================================================================================================================================
NET ASSETS AT END OF PERIOD(2) $ 43,533 $ 37,357 $ 64,726 $ 63,932 $ 479,865 $ 469,910
===================================================================================================================================
(1)CAPITAL SHARE TRANSACTIONS:
Class-A:
Shares issued 104 8 33 193 513 816
Shares issued in lieu of cash distributions -- -- 5 10 13 14
Shares redeemed (44) -- (63) (203) (275) (353)
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS-A TRANSACTIONS 60 8 (25) -- 251 477
===================================================================================================================================
Class-C:
Shares issued -- -- -- -- -- --
Shares issued in lieu of cash distributions -- -- -- -- -- --
Shares redeemed -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS-C TRANSACTIONS -- -- -- -- -- --
===================================================================================================================================
Class-Y:
Shares issued 901 799 642 1,141 4,567 7,826
Shares issued in lieu of cash distributions 1 2 1 2 107 257
Shares redeemed (310) (521) (436) (787) (3,234) (6,165)
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS-Y TRANSACTIONS 592 280 207 356 1,440 1,918
===================================================================================================================================
NET INCREASE (DECREASE) FROM SHARE TRANSACTIONS 652 288 182 356 1,691 2,395
===================================================================================================================================
</TABLE>
The accompanying notes are an integral part of the financial statements.
36 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
<TABLE>
<CAPTION>
MINNESOTA INTERMEDIATE MINNESOTA OREGON INTERMEDIATE
TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND
- ----------------------------------------------------------------------------------------------------
10/1/98 10/1/97 10/1/98 10/1/97 10/1/98 10/1/97 10/1/98 10/1/97
to to to to to to to to
3/31/99 9/30/98 3/31/99 9/30/98 3/31/99 9/30/98 3/31/99 9/30/98
(unaudited) (unaudited) (unaudited) (unaudited)
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 6,847 $ 13,525 $ 3,170 $ 6,601 $ 4,042 $ 8,036 $ 1,063 $ 2,203
146 940 233 829 179 570 41 526
(3,590) 6,149 (1,888) 3,157 (2,573) 3,153 (772) 897
- ----------------------------------------------------------------------------------------------------
3,403 20,614 1,515 10,587 1,648 11,759 332 3,626
- ----------------------------------------------------------------------------------------------------
(245) (369) (2,878) (5,936) (4) -- (939) (2,173)
-- -- (4) -- -- -- -- --
(6,600) (13,130) (266) (426) (4,047) (8,033) (77) (2)
(27) (26) (630) (754) -- -- (450) (237)
-- -- -- -- -- -- -- --
(844) (1,041) (47) (51) (483) (273) (6) --
- ----------------------------------------------------------------------------------------------------
(7,716) (14,566) (3,825) (7,167) (4,534) (8,306) (1,472) (2,412) (2)Includes undistributed
==================================================================================================== (distributions in excess
of) net investment income
(000) of $0 and $4 for
5,311 4,768 9,766 10,848 883 -- 1,333 1,327 California Intermediate
151 206 2,938 5,175 -- -- 840 1,738 Tax Free Fund, $(1) and
(1,753) (2,271) (10,872) (25,945) -- -- (3,138) (13,562) $4 for Colorado
- ---------------------------------------------------------------------------------------------------- Intermediate Tax Free
Fund, $(40) and $13 for
3,709 2,703 1,832 (9,922) 883 -- (965) (10,497) Intermediate Tax Free
- ---------------------------------------------------------------------------------------------------- Income Fund, $28 and $26
for Minnesota
-- -- 720 -- -- -- 36 -- Intermediate Tax Free
-- -- 3 -- -- -- -- -- Fund, $233 and $211 for
-- -- -- -- -- -- -- -- Minnesota Tax Free Fund,
- ---------------------------------------------------------------------------------------------------- $(6) and $3 for Oregon
Intermediate Tax Free
-- -- 723 -- -- -- 36 -- Fund, and $75 and $28 for
- ---------------------------------------------------------------------------------------------------- Tax Free Fund, at March
31, 1999, and September
22,669 51,692 6,196 1,242 15,785 20,945 7,560 351 30, 1998, respectively.
196 367 194 309 239 397 18 --
(28,268) (37,457) (2,506) (2,626) (9,646) (19,481) (433) --
- ----------------------------------------------------------------------------------------------------
(5,403) 14,602 3,884 (1,075) 6,378 1,861 7,145 351
- ----------------------------------------------------------------------------------------------------
(1,694) 17,305 6,439 (10,997) 7,261 1,861 6,216 (10,146)
- ----------------------------------------------------------------------------------------------------
(6,007) 23,353 4,129 (7,577) 4,375 5,314 5,076 (8,932)
327,928 304,575 127,092 134,669 187,383 182,069 40,706 49,638
====================================================================================================
$ 321,921 $ 327,928 $ 131,221 $ 127,092 $ 191,758 $ 187,383 $ 45,782 $ 40,706
====================================================================================================
518 470 858 964 87 -- 117 117
15 20 259 460 -- -- 74 154
(171) (224) (957) (2,310) -- -- (276) (1,199)
- ----------------------------------------------------------------------------------------------------
362 266 160 (886) 87 -- (85) (928)
====================================================================================================
-- -- 64 -- -- -- 3 --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------
-- -- 64 -- -- -- 3 --
====================================================================================================
2,222 5,109 547 111 1,552 2,079 667 31
19 36 17 28 24 39 2 --
(2,771) (3,705) (221) (234) (949) (1,934) (38) --
- ----------------------------------------------------------------------------------------------------
(530) 1,440 343 (95) 627 184 631 31
====================================================================================================
(168) 1,706 567 (981) 714 184 549 (897)
====================================================================================================
</TABLE>
37 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING, THROUGHOUT THE PERIODS
ENDED SEPTEMBER 30, UNLESS OTHERWISE INDICATED.
<TABLE>
<CAPTION>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS
VALUE NET GAINS OR FROM NET DISTRIBUTIONS
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM
OF PERIOD INCOME INVESTMENTS INCOME CAPITAL GAINS
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CALIFORNIA INTERMEDIATE TAX FREE FUND
Class-A
1999* (unaudited) $10.37 $ 0.21 $(0.11) $(0.21) $(0.03)
1998 10.04 0.43 0.33 (0.43) --
1997(1) 10.00 0.06 0.04 (0.06) --
Class-Y
1999* (unaudited) $10.36 $ 0.21 $(0.11) $(0.21) $(0.03)
1998 10.03 0.43 0.33 (0.43) --
1997(1) 10.00 0.06 0.03 (0.06) --
COLORADO INTERMEDIATE TAX FREE FUND
Class-A
1999* (unaudited) $10.89 $ 0.23 $(0.17) $(0.23) $(0.02)
1998 10.61 0.47 0.30 (0.47) (0.02)
1997 10.42 0.48 0.24 (0.48) (0.05)
1996 10.51 0.49 (0.04) (0.49) (0.05)
1995 10.15 0.49 0.36 (0.49) --
1994(2) 10.00 0.21 0.16 (0.22) --
Class-Y
1999* (unaudited) $10.88 $ 0.23 $(0.18) $(0.23) $(0.02)
1998 10.61 0.47 0.29 (0.47) (0.02)
1997 10.42 0.48 0.24 (0.48) (0.05)
1996 10.51 0.49 (0.04) (0.49) (0.05)
1995 10.16 0.48 0.36 (0.49) --
1994(2) 10.00 0.22 0.16 (0.22) --
INTERMEDIATE TAX FREE FUND
Class-A
1999* (unaudited) $11.05 $ 0.23 $(0.15) $(0.23) $(0.05)
1998 10.84 0.47 0.27 (0.47) (0.06)
1997 10.66 0.47 0.24 (0.47) (0.06)
1996 10.72 0.46 0.01 (0.46) (0.07)
1995 10.28 0.49 0.43 (0.48) --
1994 10.92 0.44 (0.57) (0.44) (0.07)
Class-Y
1999* (unaudited) $11.03 $ 0.23 $(0.14) $(0.23) $(0.05)
1998 10.82 0.47 0.27 (0.47) (0.06)
1997 10.65 0.47 0.23 (0.47) (0.06)
1996 10.72 0.46 -- (0.46) (0.07)
1995 10.28 0.49 0.43 (0.48) --
1994(3) 10.89 0.29 (0.61) (0.29) --
MINNESOTA INTERMEDIATE TAX FREE FUND
Class-A
1999* (unaudited) $10.29 $ 0.21 $(0.11) $(0.21) $(0.03)
1998 10.09 0.43 0.24 (0.43) (0.04)
1997 9.91 0.44 0.21 (0.44) (0.03)
1996 9.92 0.45 0.02 (0.45) (0.03)
1995 9.58 0.46 0.33 (0.45) --
1994(4) 10.00 0.25 (0.42) (0.25) --
Class-Y
1999* (unaudited) $10.26 $ 0.21 $(0.11) $(0.21) $(0.03)
1998 10.06 0.43 0.24 (0.43) (0.04)
1997 9.91 0.44 0.18 (0.44) (0.03)
1996 9.92 0.45 0.02 (0.45) (0.03)
1995 9.59 0.45 0.33 (0.45) --
1994(4) 10.00 0.25 (0.41) (0.25) --
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
* For the six months ended March 31, 1999. All ratios for the period have been
annualized.
+ Returns are for the period indicated and have not been annualized.
(A)Excluding sales charges.
The accompanying notes are an integral part of the financial statements.
38 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
<TABLE>
<CAPTION>
RATIO OF
RATIO OF NET EXPENSES TO
NET ASSET RATIO OF INVESTMENT AVERAGE
VALUE NET ASSETS EXPENSES TO INCOME TO NET ASSETS PORTFOLIO
END OF TOTAL END OF AVERAGE AVERAGE (EXCLUDING TURNOVER
PERIOD RETURN (A) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) RATE
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$10.23 0.93%+ $ 696 0.70% 4.21% 1.18% 0%
10.37 7.80 82 0.70 4.22 1.21 22
10.04 1.02+ 1 0.69 4.48 1.36 3
$10.22 0.93%+ $ 42,837 0.70% 4.21% 0.93% 0%
10.36 7.80 37,275 0.70 4.27 0.96 22
10.03 0.92+ 33,287 0.69 4.14 1.11 3
$10.70 0.58%+ $ 3,954 0.70% 4.29% 1.22% 15%
10.89 7.43 4,301 0.70 4.43 1.17 19
10.61 7.11 4,187 0.70 4.55 1.16 11
10.42 4.39 2,861 0.70 4.69 1.18 20
10.51 8.57 2,189 0.70 4.83 1.27 19
10.15 3.66+ 693 0.69 4.51 4.96 4
$10.68 0.49%+ $ 60,772 0.70% 4.29% 0.97% 15%
10.88 7.33 59,631 0.70 4.43 0.92 19
10.61 7.11 54,378 0.70 4.55 0.91 11
10.42 4.39 48,927 0.70 4.69 0.93 20
10.51 8.47 50,071 0.70 4.84 1.02 19
10.16 3.76+ 7,281 0.69 4.51 4.71 4
$10.85 0.81%+ $ 11,754 0.70% 4.25% 1.11% 7%
11.05 7.04 9,196 0.70 4.31 1.11 27
10.84 6.84 3,849 0.67 4.41 1.18 66
10.66 4.45 2,618 0.66 4.35 1.17 53
10.72 9.15 983 0.67 4.71 1.30 68
10.28 (1.25) 1,128 0.59 4.13 2.78 52
$10.84 0.90%+ $468,111 0.70% 4.25% 0.86% 7%
11.03 7.05 460,714 0.70 4.32 0.86 27
10.82 6.75 431,000 0.67 4.40 0.93 66
10.65 4.35 66,994 0.66 4.35 0.92 53
10.72 9.15 46,025 0.67 4.73 1.05 68
10.28 (2.91)+ 6,168 0.45 4.48 2.20 52
$10.15 1.00%+ $ 13,804 0.70% 4.21% 1.12% 5%
10.29 6.80 10,330 0.70 4.30 1.11 24
10.09 6.72 7,453 0.70 4.49 1.15 20
9.91 4.80 3,916 0.70 4.52 1.18 19
9.92 8.46 2,219 0.70 4.74 1.25 38
9.58 (1.68)+ 1,508 0.67 4.57 1.84 22
$10.12 1.00%+ $308,117 0.70% 4.21% 0.87% 5%
10.26 6.82 317,598 0.70 4.30 0.86 24
10.06 6.42 297,122 0.70 4.47 0.90 20
9.91 4.80 93,394 0.70 4.53 0.93 19
9.92 8.34 61,693 0.70 4.76 1.00 38
9.59 (1.58)+ 20,272 0.67 4.57 1.59 22
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
(1)Commenced operations on August 8, 1997. All ratios for the period have been
annualized.
(2)Commenced operations on April 4, 1994. All ratios for the period have been
annualized.
(3)Class-Y shares have been offered since February 4, 1994. All ratios for the
period have been annualized.
(4)Commenced operations on February 25, 1994. All ratios for the period have
been annualized.
39 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING, THROUGHOUT THE PERIODS
ENDED SEPTEMBER 30, UNLESS OTHERWISE INDICATED.
<TABLE>
<CAPTION>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS
VALUE NET GAINS OR FROM NET DISTRIBUTIONS
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM
OF PERIOD INCOME INVESTMENTS INCOME CAPITAL GAINS
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
MINNESOTA TAX FREE FUND (B)
Class-A
1999* (unaudited) $11.46 $ 0.28 $(0.15) $(0.28) $(0.06)
1998 11.15 0.57 0.36 (0.56) (0.06)
1997 10.89 0.57 0.31 (0.57) (0.05)
1996 10.81 0.59 0.07 (0.58) --
1995 10.28 0.66 0.53 (0.66) --
1994 11.43 0.61 (0.95) (0.61) (0.20)
Class-C
1999(3) (unaudited) $11.38 $ 0.11 $(0.15) $(0.09) $ --
Class-Y
1999* (unaudited) $11.45 $ 0.29 $(0.15) $(0.29) $(0.06)
1998 11.14 0.60 0.36 (0.59) (0.06)
1997(1) 11.16 0.10 (0.02) (0.10) --
OREGON INTERMEDIATE TAX FREE FUND
Class-A
1999(4) (unaudited) $10.23 $ 0.07 $(0.15) $(0.07) $ --
Class-Y
1999* (unaudited) $10.24 $ 0.22 $(0.13) $(0.22) $(0.03)
1998 10.05 0.45 0.21 (0.45) (0.02)
1997(5) 10.00 0.07 0.05 (0.07) --
TAX FREE FUND (B)
Class-A
1999* (unaudited) $11.53 $ 0.28 $(0.19) $(0.27) $(0.13)
1998 11.21 0.55 0.36 (0.54) (0.05)
1997 10.81 0.54 0.42 (0.54) (0.02)
1996 10.69 0.56 0.12 (0.56) --
1995 10.22 0.60 0.47 (0.60) --
1994 11.76 0.57 (1.21) (0.57) (0.33)
Class-C
1999(3) (unaudited) $11.34 $ 0.10 $(0.15) $(0.08) $ --
Class-Y
1999* (unaudited) $11.54 $ 0.30 $(0.19) $(0.29) $(0.13)
1998(2) 11.31 0.10 0.22 (0.09) --
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
* For the six months ended March 31, 1999. All ratios for the period have been
annualized.
+ Returns are for the period indicated and have not been annualized.
(A)Excluding sales charges.
(B)The financial highlights for the Minnesota Tax Free Fund and Tax Free Fund
as set forth herein include the historical financial highlights of the Piper
Minnesota Tax-Exempt Fund class-A shares and class-Y shares, and the Piper
National Tax-Exempt Fund class-A shares. The assets of the Piper Minnesota
Tax-Exempt Fund and Piper National Tax-Exempt Fund were acquired by Minnesota
Tax Free Fund and Tax Free Fund on July 31, 1998. In connection with this
acquisition, (i) class-A shares of the Piper Minnesota Tax-Exempt Fund and
Piper National Tax-Exempt Fund were exchanged for class-A shares of the
Minnesota Tax Free Fund and Tax Free Fund, respectively, (ii) class-Y shares
of the Piper Minnesota Tax-Exempt Fund were exchanged for class-Y shares of
the Minnesota Tax Free Fund. On July 31, 1998 the Fund's advisor changed from
Piper Capital Management, Inc. to U.S. Bank N.A.
The accompanying notes are an integral part of the financial statements.
40 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
<TABLE>
<CAPTION>
RATIO OF
RATIO OF NET EXPENSES TO
NET ASSET RATIO OF INVESTMENT AVERAGE
VALUE NET ASSETS EXPENSES TO INCOME TO NET ASSETS PORTFOLIO
END OF TOTAL END OF AVERAGE AVERAGE (EXCLUDING TURNOVER
PERIOD RETURN (A) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) RATE
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$11.25 1.13%+ $118,637 0.95% 4.93% 1.13% 4%
11.46 8.58 118,937 0.95 5.05 1.01 16
11.15 8.32 125,659 0.95 5.17 1.01 17
10.89 6.24 125,677 0.90 5.38 0.99 35
10.81 11.38 133,857 0.91 5.80 0.99 30
10.28 (3.14) 162,468 0.89 5.61 0.99 44
$11.25 (0.38)%+ $ 718 1.35% 4.53% 1.88% 4%
$11.24 1.25%+ $ 11,866 0.70% 5.18% 0.88% 4%
11.45 8.83 8,155 0.78 5.79 0.82 16
11.14 0.72+ 9,010 0.75 5.73 0.75 17
$10.08 (0.77)%+ $ 877 0.70% 4.25% 1.12% 6%
$10.08 0.81%+ $190,881 0.70% 4.25% 0.87% 6%
10.24 6.66 187,383 0.70 4.43 0.87 20
10.05 1.17+ 182,069 0.70 4.55 1.09 4
$11.22 0.81%+ $ 38,318 1.05% 5.14% 1.18% 5%
11.53 8.41 40,351 1.10 4.84 1.16 7
11.21 9.09 49,638 1.11 4.91 1.17 28
10.81 6.42 45,935 1.03 5.15 1.13 43
10.69 10.30 57,061 1.01 5.37 1.09 28
10.22 (5.72) 67,949 0.93 5.25 1.03 65
$11.21 0.40%+ $ 36 1.35% 4.75% 1.93% 5%
$11.23 0.93%+ $ 7,428 0.80% 5.29% 0.93% 5%
11.54 2.83+ 355 0.85 5.61 0.91 7
- ----------------------------------------------------------------------------------------------------------
</TABLE>
(1)Class-Y shares have been offered since August 1, 1997. All ratios for the
period have been annualized.
(2)Class-Y shares have been offered since July 31, 1998. All ratios for the
period have been annualized.
(3)For the period ended March 31, 1999. Class-C shares have been offered since
February 1, 1999. All ratios for the period have been annualized.
(4)For the period ended March 31, 1999. Class-A shares have been offered since
February 1, 1999. All ratios for the period have been annualized.
(5)Commenced operations on August 8, 1997. All ratios for the period have been
annualized.
41 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
NOTES TO
FINANCIAL STATEMENTS MARCH 31, 1999 (UNAUDITED)
1 ORGANIZATION
The First American California Intermediate Tax Free Fund, Colorado Intermediate
Tax Free Fund, Intermediate Tax Free Fund, Minnesota Intermediate Tax Free Fund,
Minnesota Tax Free Fund, Oregon Intermediate Tax Free Fund, and Tax Free Fund
(collectively, the "Funds") are mutual funds offered by First American
Investment Funds, Inc. ("FAIF"). The First American Limited Term Income Fund,
Intermediate Term Income Fund, Intermediate Government Bond Fund, Fixed Income
Fund, Adjustable Rate Mortgage Securities Fund, Strategic Income Fund, Balanced
Fund, Real Estate Securities Fund, Equity Income Fund, Equity Index Fund, Large
Cap Value Fund, Large Cap Growth Fund, Mid Cap Value Fund, Regional Equity Fund,
Small Cap Value Fund, Small Cap Growth Fund, Micro Cap Value Fund, International
Index Fund, International Fund, Health Sciences Fund, Technology Fund, Emerging
Markets Fund, and Mid Cap Growth Fund are also funds offered by FAIF but are not
included in this report. FAIF is registered under the Investment Company Act of
1940, as amended, as an open-end investment management company. FAIF's articles
of incorporation permit the board of directors to create additional funds in the
future.
These FAIF Funds offer class-A and class-Y shares. Minnesota Tax Free Fund and
Tax Free Fund also offer class-C shares. Class-A shares are sold with a
front-end sales charge. Class-Y shares have no sales charge and are offered only
to qualifying institutional investors. Class-C shares are sold with a front-end
sales charge and are subject to a contingent deferred sales charge for eighteen
months.
The Funds' prospectuses provide a description of each Fund's investment
objectives, policies and strategies. All classes of shares have identical
voting, dividend, liquidation and other rights, and the same terms and
conditions, except that the level of distribution fees charged may differ among
classes and each class has exclusive voting rights on any matters relating to
that class' servicing or distribution arrangements.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies followed by the Funds are as follows:
SECURITY VALUATION - Security valuations for FAIF Fund investments are furnished
by one or more independent pricing services that have been approved by the Board
of Directors. Debt obligations exceeding sixty days to maturity are valued by an
independent pricing service. The pricing service may employ methodologies that
utilize actual market transactions, broker-dealer supplied valuations, or other
electronic data processing techniques. These techniques generally consider such
factors as yields or prices of bonds of comparable quality, type of issue,
coupon, maturity, ratings and general market conditions. When market quotations
are not readily available, securities are valued at fair value as determined in
good faith by procedures established and approved by the Board of Directors.
Debt obligations with sixty days or less remaining until maturity may be valued
at their amortized cost. Investments in closed-end mutual funds which are traded
on a national securities exchange (or reported on the NASDAQ national market
system) are stated at the last quoted sales price if readily available for such
securities on each business day.
SECURITY TRANSACTIONS AND INVESTMENT INCOME - The Funds record security
transactions on the trade date of the security purchase or sale. Interest
income, including
42 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
amortization of bond premium and discount is recorded on the accrual basis.
Security gains and losses are determined on the basis of identified cost, which
is the same basis used for Federal income tax purposes.
DISTRIBUTIONS TO SHAREHOLDERS - The Funds declare and pay income dividends
monthly. Any net realized capital gains on sales of securities for a Fund are
distributed to shareholders at least annually.
FEDERAL TAXES - It is each Fund's intention to continue to qualify as a
regulated investment company and to distribute all of its taxable income.
Accordingly, no provision for Federal income taxes is required. For Federal
income tax purposes, required distributions related to realized gains from
security transactions are computed as of October 31st.
The amounts of distributions from net investment income and net realized capital
gains are determined in accordance with Federal income tax regulations, which
may differ from those amounts determined under generally accepted accounting
principles. These book/tax differences are either temporary or permanent in
nature and are primarily due to wash sales. The character of distributions made
during the year from net investment income or net realized gains, and the timing
of distributions where the fiscal year in which the amounts are distributed may
differ from the year that the income or realized gains (losses) were recorded by
the Fund. To the extent these differences are permanent, adjustments are made to
the appropriate equity accounts in the period that the difference arises.
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS - Delivery and payment for
securities that have been purchased by a Fund on a forward commitment or
when-issued basis can take place up to a month or more after the transaction
date. During this period, such securities are subject to market fluctuations and
the portfolio maintains, in a segregated account with its custodian, assets with
a market value equal to or greater than the amount of its purchase commitments.
The purchase of securities on a when-issued or forward commitment basis may
increase the volatility of a Fund's net asset value if the Fund makes such
investments while remaining substantially fully invested. At March 31, 1999, the
California Intermediate Tax Free Fund, Intermediate Tax Free Fund, Minnesota
Intermediate Tax Free Fund, and Oregon Intermediate Tax Free Fund had
outstanding when-issued commitments of $1,630,979, $4,245,120, $4,338,820, and
$247,341 respectively.
EXPENSES - Expenses that are directly related to one of the Funds are charged
directly to that Fund. Other operating expenses are allocated to the Funds on
the basis of relative net assets. Class specific expenses, such as the 12b-1
fees, are borne by that class. Income, other expenses and realized and
unrealized gains and losses of a Fund are allocated to the respective class on
the basis of the relative net assets each day.
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS - The preparation of
financial statements, in conformity with generally accepted accounting
principles, requires management to make estimates and assumptions that affect
the reported amount of net assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported
results of operations during the reporting period. Actual results could differ
from those estimates.
HISTORICAL FINANCIAL STATEMENT INFORMATION - The financial information presented
for Minnesota Tax Free Fund and Tax Free Fund prior to July 31, 1998, is that of
the
43 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
NOTES TO
FINANCIAL STATEMENTS MARCH 31, 1999 (UNAUDITED)
former Piper Minnesota Tax-Exempt Fund and the former Piper National Tax-Exempt
Fund respectively. The historical financial information of the former Piper
Funds was carried over to the newly formed FAIF Funds.
3 FEES AND EXPENSES
ADVISORY FEES - Pursuant to an investment advisory agreement (the Agreement),
U.S. Bank National Association (the Advisor) manages each Fund's assets and
furnishes related office facilities, equipment, research and personnel. The
Agreement requires each Fund to pay the Advisor a monthly fee based upon average
daily net assets. The fee for each of the FAIF Funds is equal to an annual rate
of .70% of the average daily net assets.
The Funds may invest in First American Funds, Inc. (FAF), subject to certain
limitations. The terms of such transactions are identical to those of
non-related entities except that, to avoid duplicative investment advisory fees,
the Advisor reimburses each FAIF Fund an amount equal to the investment advisory
fee earned by FAF related to such investments.
ADMINISTRATION FEES - SEI Investments Management Corporation (SIMC) provides
administrative services, including certain accounting, legal and shareholder
services, at an annual rate of .12% of each FAIF fund's average daily net
assets, with a minimum annual fee of $50,000 for the Minnesota Tax Free Fund and
Tax Free Fund. To the extent that the aggregate net assets of the First American
Family of Funds exceed $8 billion, the annual rate of each FAIF Fund is reduced
to .105% for their relative share of the excess net assets.
SUBADMINISTRATION FEES - U.S. Bank National Association assists the
Administrator and provides sub-administration services for the Funds. For these
services, the Administrator compensates the sub-administrator at an annual rate
of up to 0.05% of each Fund's average daily net assets. Under this agreement,
SIMC paid $155,000 to U.S. Bank National Association for the six months ended
March 31, 1999, for the Funds included in this report. The fees for the period
were approximately 0.025% of average daily net assets.
CUSTODIAN FEES - Through a separate contractual agreement, U.S. Bank National
Association serves as the Funds' custodian. The fee for each Fund is equal to an
annual rate of .03% of average daily net assets.
DISTRIBUTION FEES - SEI Investments Distribution Co. (SIDCO) serves as
distributor of the Funds. Under the distribution plan, each of the Funds pay
SIDCO a monthly distribution fee at an annual rate of 0.25%, and 1.00% of each
Fund's average daily net assets of the class-A shares and class-C shares,
respectively, which may be used by SIDCO to provide compensation for sales
support and distribution activities. No distribution fees are paid by class-Y
shares. Under the agreement, for the six months ended March 31, 1999, SIDCO paid
the following amounts to affiliates of U.S. Bank National Association, for the
Funds included in this report (000):
----------------------------------------
U.S. Bancorp Piper Jaffray $187
U.S. Bank National Association --
Var & Co. 1
----------------------------------------
TRANSFER AGENT FEES - DST Systems, Inc. provides transfer agency services for
the Funds. Effective October 1, 1998, FAIF has appointed U.S. Bank National
Association as servicing agent to perform certain transfer agent and dividend
disbursing agent services with respect to the class-A shares of the Funds held
through accounts at U.S. Bank
44 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
National Association and its affiliates. For the period ended March 31, 1999,
fees paid to U.S. Bank National Association were as follows (000):
- --------------------------------------------------------------------------------
California Intermediate Tax Free Fund $ --
Colorado Intermediate Tax Free Fund --
Intermediate Tax Free Fund --
Minnesota Intermediate Tax Free Fund --
Minnesota Tax Free Fund 20
Oregon Intermediate Tax Free Fund --
Tax Free Fund 9
- --------------------------------------------------------------------------------
OTHER FEES - In addition to the investment advisory and management fees,
custodian fees, distribution fees, administrator and transfer agent fees, each
Fund is responsible for paying most other operating expenses including
organization costs, fees and expenses of outside directors, registration fees,
printing shareholder reports, legal, auditing, insurance and other miscellaneous
expenses.
For the six months ended March 31, 1999, legal fees and expenses were paid to a
law firm of which the Secretary of the Funds is a partner.
SALES CHARGES - A Contingent Deferred Sales Charge (CDSC) of 1.00% is imposed on
redemptions made in the class-C shares for the first eighteen months. The CDSC
is imposed on the value of the purchased shares or the value at the time of
redemption, whichever is less.
For the six months ended March 31, 1999, sales charges retained by SIDCO for
distributing the First American Family of Funds' shares were approximately
$58,000.
4 INVESTMENT SECURITY TRANSACTIONS
During the six months ended March 31, 1999, purchases of securities and proceeds
from sales of securities, other than temporary investments in short-term
securities, were as follows (000):
INVESTMENT SECURITIES
-------------------------
PURCHASES SALES
- --------------------------------------------------------------------------------
California Intermediate Tax Free Fund $ 5,792 $ 50
Colorado Intermediate Tax Free Fund 9,118 9,222
Intermediate Tax Free Fund 52,239 34,064
Minnesota Intermediate Tax Free Fund 17,219 15,394
Minnesota Tax Free Fund 5,025 4,416
Oregon Intermediate Tax Free Fund 19,152 11,684
Tax Free Fund 6,717 1,997
- --------------------------------------------------------------------------------
At March 31, 1999, the total cost of securities for Federal income tax purposes,
was not materially different from amounts reported for financial reporting
purposes. The aggregate gross unrealized appreciation and depreciation for
securities held by the Funds at March 31, 1999, is as follows (000):
AGGREGATE GROSS AGGREGATE GROSS
APPRECIATION DEPRECIATION NET
- --------------------------------------------------------------------------------
California Intermediate Tax Free Fund $ 1,854 $ (9) $ 1,845
Colorado Intermediate Tax Free Fund 3,231 (166) 3,065
Intermediate Tax Free Fund 16,990 (533) 16,457
Minnesota Intermediate Tax Free Fund 13,266 (97) 13,169
Minnesota Tax Free Fund 8,338 (104) 8,234
Oregon Intermediate Tax Free Fund 6,906 (255) 6,651
Tax Free Fund 3,308 (44) 3,264
- --------------------------------------------------------------------------------
45 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
NOTES TO
FINANCIAL STATEMENTS MARCH 31, 1999 (UNAUDITED)
5 CONCENTRATION OF CREDIT RISK
The Funds invest in debt instruments of municipal issuers. Although these Funds
monitor investment concentration, the issuers' ability to meet their obligations
may be affected by economic developments in a specific state or region.
The Funds invest in securities that include revenue bonds, tax and revenue
anticipation notes, and general obligation bonds. At March 31, 1999, the
percentage of portfolio investments by each revenue source was as follows:
<TABLE>
<CAPTION>
CALIFORNIA COLORADO MINNESOTA OREGON
INTERMEDIATE INTERMEDIATE INTERMEDIATE INTERMEDIATE MINNESOTA INTERMEDIATE
TAX FREE TAX FREE TAX FREE TAX FREE TAX FREE TAX FREE TAX FREE
FUND FUND FUND FUND FUND FUND FUND
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Revenue Bonds:
Education 9% 9% 8% 1% 13% 3% 8%
Hospital Bonds 4 11 9 11 15 -- 20
Nursing Home Bonds -- -- 1 -- 7 6 14
Transportation Bonds 2 5 5 3 -- 4 5
Utility Bonds 14 9 15 13 4 18 10
Pollution Control Bonds -- 3 2 3 -- 1 11
Public Facility Bonds 11 3 5 3 1 1 2
Housing Bonds 6 2 9 14 19 4 13
Other 3 7 6 3 2 2 7
General Obligations: 50 51 39 49 39 61 9
Anticipation Notes 1 -- 1 -- -- -- 1
-----------------------------------------------------------------------------------------------
100% 100% 100% 100% 100% 100% 100%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
The rating of long-term debt as a percentage of total value of investments at
March 31, 1999, is as follows:
<TABLE>
<CAPTION>
STANDARD & CALIFORNIA COLORADO MINNESOTA OREGON
POOR'S/ INTERMEDIATE INTERMEDIATE INTERMEDIATE INTERMEDIATE MINNESOTA INTERMEDIATE
MOODY'S TAX FREE TAX FREE TAX FREE TAX FREE TAX FREE TAX FREE TAX FREE
RATINGS: FUND FUND FUND FUND FUND FUND FUND
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
AAA/Aaa 66% 58% 66% 69% 36% 54% 58%
AA/Aa 16 24 18 20 27 27 7
A/A 17 12 13 6 13 18 11
BBB/Baa 1 4 1 3 4 -- 6
D -- -- -- -- 1 -- 1
NR -- 2 2 2 19 1 17
-----------------------------------------------------------------------------------------------------
100% 100% 100% 100% 100% 100% 100%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
Securities rated by only one agency are shown in that category. Securities rated
by both agencies are shown with their lowest rating.
6 PIPER MERGER
The Board of Directors and shareholders of the Piper Funds approved a
reorganization of certain Piper Funds into FAIF that took place at the close of
business on July 31, 1998:
PIPER ACQUIRED FUND FAIF ACQUIRING FUND
- --------------------------------------------------------------------------------
National Tax Exempt Tax Free
Minnesota Tax Exempt Minnesota Tax Free
- --------------------------------------------------------------------------------
Under the Agreement and Plan of Reorganization the Piper class-A shares were
exchanged, on a tax free basis, for class-A shares of FAIF, and Piper class-Y
shares were exchanged, on a tax free basis, for class-Y shares of FAIF.
46 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
The net assets prior to reorganization and shares issued and redeemed were as
follows:
ACQUIRING FUND'S ACQUIRED FUND'S
FAIF FUND NET ASSETS SHARES ISSUED SHARES REDEEMED
- --------------------------------------------------------------------------------
Tax Free $ -- 3,635,037 3,635,037
Minnesota Tax Free -- 11,152,396 11,152,396
- --------------------------------------------------------------------------------
Included in the net assets from the Piper Funds were the following components:
<TABLE>
<CAPTION>
UNDISTRIBUTED
(DISTRIBUTIONS IN
EXCESS OF) NET ACCUMULATED NET UNREALIZED
PIPER FUND PAID IN CAPITAL INVESTMENT INCOME NET REALIZED GAIN APPRECIATION NET ASSETS
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
National Tax-Exempt $ 37,374,741 $ (2,106) $397,386 $3,315,331 $ 41,085,352
Minnesota Tax-Exempt 116,743,329 85,000 823,340 7,829,650 125,481,319
- ------------------------------------------------------------------------------------------------------------
</TABLE>
47 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
NOTICE TO
SHAREHOLDERS MARCH 31, 1999
ON SEPTEMBER 9, 1998, THE FUNDS' BOARD OF DIRECTORS, UPON THE RECOMMENDATION OF
THE AUDIT COMMITTEE, APPOINTED ERNST & YOUNG LLP THE INDEPENDENT ACCOUNTANTS FOR
THE FUNDS' FISCAL YEAR ENDING SEPTEMBER 30, 1999, AND DISMISSED KPMG PEAT
MARWICK LLP ("KPMG"). KPMG'S REPORTS ON THE FUNDS' FINANCIAL STATEMENTS FOR THE
PAST TWO YEARS HAVE NOT CONTAINED AN ADVERSE OPINION OR A DISCLAIMER OF OPINION
AND HAVE NOT BEEN QUALIFIED AS TO UNCERTAINTY, AUDIT SCOPE, OR ACCOUNTING
PRINCIPLES. IN ADDITION, THERE HAVE NOT BEEN ANY DISAGREEMENTS WITH KPMG DURING
THE FUNDS' TWO MOST RECENT FISCAL YEARS ON ANY MATTER OF ACCOUNTING PRINCIPLES
OR PRACTICES, FINANCIAL STATEMENT DISCLOSURE, OR AUDITING SCOPE OR PROCEDURE
WHICH, IF NOT RESOLVED TO THE SATISFACTION OF KPMG, WOULD HAVE CAUSED IT TO MAKE
A REFERENCE TO THE SUBJECT MATTER OF THE DISAGREEMENT IN THE CONNECTION WITH ITS
REPORTS.
MINNESOTA TAX FREE AND TAX FREE FUNDS WILL ATTEMPT TO MAINTAIN THE WEIGHTED
AVERAGE MATURITY OF THEIR PORTFOLIO SECURITIES AT 10 TO 25 YEARS UNDER NORMAL
MARKET CONDITIONS.
48 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
FIRST AMERICAN INVESTMENT FUNDS, INC.
BOARD OF DIRECTORS
MR. DAVID BENNETT
Director of First American Investment Funds, Inc.
Of counsel with Gray, Plant, Mooty, Mooty and Bennett,
Owner of three privately-held businesses
- --------------------------------------------------------------------------------
MR. ROBERT DAYTON
Director of First American Investment Funds, Inc.
Chief Executive Officer of Okabena Company
- --------------------------------------------------------------------------------
MR. ROGER GIBSON
Director of First American Investment Funds, Inc.
Vice President of North America-Mountain Region for United Airlines
- --------------------------------------------------------------------------------
MR. ANDREW HUNTER III
Director of First American Investment Funds, Inc.
Chairman of Hunter Keith Industries
- --------------------------------------------------------------------------------
MR. LEONARD KEDROWSKI
Director of First American Investment Funds, Inc.
Owner and President of Executive Management Consulting, Inc.
- --------------------------------------------------------------------------------
MR. ROBERT SPIES
Director of First American Investment Funds, Inc.
Retired Vice President, U.S. Bank National Association
- --------------------------------------------------------------------------------
MR. JOSEPH STRAUSS
Director of First American Investment Funds, Inc.
Former Chairman of First American Funds,
Owner and President of Strauss Management Company
- --------------------------------------------------------------------------------
MS. VIRGINIA STRINGER
Chairman of First American Investment Funds, Inc.
Owner and President of Strategic Management Resources, Inc.
- --------------------------------------------------------------------------------
<PAGE>
FIRST AMERICAN INVESTMENT FUNDS, INC.
1 Freedom Valley Drive
Oaks, Pennsylvania 19456
INVESTMENT ADVISOR
FIRST AMERICAN ASSET MANAGEMENT,
A DIVISION OF U.S. BANK NATIONAL ASSOCIATION
601 Second Avenue South
Minneapolis, Minnesota 55402
CUSTODIAN
U.S. BANK NATIONAL ASSOCIATION
180 East Fifth Street
St. Paul, Minnesota 55101
ADMINISTRATOR
SEI INVESTMENTS MANAGEMENT
CORPORATION
1 Freedom Valley Drive
Oaks, Pennsylvania 19456
TRANSFER AGENT
DST SYSTEMS, INC.
330 West Ninth Street
Kansas City, Missouri 64105
DISTRIBUTOR
SEI INVESTMENTS DISTRIBUTION CO.
1 Freedom Valley Drive
Oaks, Pennsylvania 19456
INDEPENDENT AUDITORS
ERNST & YOUNG LLP
1400 Pillsbury Center
200 South Sixth Street
Minneapolis, Minnesota 55402
COUNSEL
DORSEY & WHITNEY LLP
220 South Sixth Street
Minneapolis, Minnesota 55402
This report and the financial statements contained herein are submitted for the
general information of the shareholders of the corporation. The report is not
authorized for distribution to prospective investors in the corporation unless
preceded or accompanied by an effective prospectus for each of the funds
included. Shares in the funds are not deposits or obligations of, or guaranteed
or endorsed by, U.S. Bank or any of its affiliates. Such shares are also not
federally insured by the Federal Deposit Insurance Corporation, the Federal
Reserve Board, or any other agency. Investment in the shares involve investment
risk including loss of principal amount invested.
Past performance does not guarantee future results. The principal value of an
investment will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost.
- --------------------------------------------------------------------------------
[LOGO] FIRST AMERICAN
THE POWER OF DISCIPLINED INVESTING(R)
5/1999 200-99
