FIRST AMERICAN INVESTMENT FUNDS, INC.
TAX FREE BOND FUNDS
1999 ANNUAL REPORT
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
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FIRST AMERICAN FAMILY OF FUNDS INVESTMENTS FOR EVERY GOAL
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HIGHER RETURN FIRST AMERICAN FUNDS OFFER A FULL RANGE OF
POTENTIAL INVESTMENT STRATEGIES TO 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
INTERNATIONAL FUNDS HELP BUILD A 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 TABLE OF
CONTENTS
MONEY MARKET FUNDS
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- -------------------------------- MESSAGE TO SHAREHOLDERS 1
LOWER RETURN --------------------------------------------
POTENTIAL WHAT A DIFFERENCE A YEAR MAKES 2
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Tax Free Bond Funds Overview 4
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California Intermediate Tax Free 6
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Colorado Intermediate Tax Free 7
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Intermediate Tax Free 8
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Minnesota Intermediate Tax Free 9
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Minnesota Tax Free 10
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Oregon Intermediate Tax Free 11
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Tax Free 12
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REPORT OF INDEPENDENT AUDITORS 13
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STATEMENTS OF NET ASSETS 14
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STATEMENTS OF OPERATIONS 46
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STATEMENTS OF CHANGES IN NET ASSETS 48
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FINANCIAL HIGHLIGHTS 50
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NOTES TO FINANCIAL STATEMENTS 54
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NOTICE TO SHAREHOLDERS 62
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NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
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MESSAGE TO SHAREHOLDERS SEPTEMBER 30, 1999
DEAR SHAREHOLDERS:
On behalf of the entire board of directors -- thank you for the ongoing
opportunity you have given us to manage your investments. Each year we are
proud to continue supporting our long-term investors, and we are always
pleased to see the new investors that have joined the First American family
of funds.
A QUICK LOOK AT THE YEAR.
The past year was another volatile time for investors. A solid economy,
strong corporate profits plus a recovery in Asian markets combined to send
the stock market upward, with the Dow Jones Industrial Average hitting a
new high. It was also reassuring to see a broader market success beyond the
large-cap growth stocks that dominated 1998, with a resurgence of small-
and mid-cap stocks, as well as international and emerging market stocks.
In contrast, the bond market fared less well. A series of interest rate
hikes intended to keep the economy from overheating depressed bond prices,
sending the yield on the benchmark 30-year Treasury bond to 6% -- an
18-month high.
WHAT DOES IT MEAN FOR INVESTORS?
Those of you who track performance on a day-to-day or week-to-week basis
have witnessed the effect of a changing bond market. This kind of market
volatility is always unnerving -- but mostly to short-term investors.
As an investor in our tax-free bond funds, your focus should be on the long
term, with an emphasis on diversification. The key message is stick with it
-- a message worth repeating in shifting financial markets. Now more than
ever, a consistent long-term approach should ride out the ups and downs of
short-term volatility. The article on the following page expands on this
idea.
Again, thank you for investing with First American Funds. As we approach
the millennium, we wish you continued success and prosperity.
Sincerely,
/s/ Virginia L. Stringer /s/ Paul A. Dow
VIRGINIA L. STRINGER PAUL A. DOW
Chairperson Chief Investment Officer and President
First American Investment First American Asset Management
Funds, Inc.
1 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
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WHAT A DIFFERENCE A YEAR MAKES
Turn back the clock to September 1998. Newspaper headlines were dominated by the
financial crisis sweeping across Asia, Latin America and Russia. At the height
of the crisis, the Dow Jones Industrial Average (DJIA) shed nearly 20% of its
value. Some predicted that the U.S. economy would slide into a recession,
erasing years of investment gains.
A year later, the DJIA has surged approximately 2,500 points, with some
financial experts alluding to a "New Economy" defined by unprecedented growth.
Yet a host of new challenges could threaten to derail these great expectations.
The Federal Reserve twice raised interest rates to quell the risk of higher
inflation, which turned the bond market bearish and triggered volatility in
equity markets.
All in all, many investors now wonder whether fundamental changes are again
underway in financial markets. Sound familiar?
SEEING THE FOREST FOR THE TREES
- --------------------------------------------------------------------------------
Keep in mind that the same economic fundamentals have been in place in the U.S.
throughout the past year: low unemployment, low inflation and rising
productivity. For the most part, America's Goldilocks economy remains just
right. International markets are also healthy, and Japan is on the rebound.
The point is that when it comes to investing, there's always something to worry
about. Fear of the unknown causes people to lose sight of their long-term goals
as they react to the latest perceived threat.
2 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
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WHAT A DIFFERENCE A YEAR MAKES
ITS BETTER TO ACT THAN REACT
- --------------------------------------------------------------------------------
What's next for the U.S. economy? No one knows for sure. But you can be certain
that today's hot investment may become tomorrow's outcast. Or that interest
rates will rise and fall. That's the natural ebb and flow of financial markets.
With this in mind, it's important to take a long-term perspective backed by a
diversified investment portfolio to weather rapidly changing financial markets.
Asset allocation -- a strategy designed to create diversified portfolios from a
blend of different asset classes -- forms the foundation of any diversification
strategy. That's because different asset classes often move in opposite
directions, with declines in one class offset by increases in another. It's a
tried-and-true approach that may help reduce volatility and generate more
balanced returns.
At the same time, systematic investing can make market volatility beneficial.
While systematic investing does not ensure a profit or avoid a loss, you have
the long-term potential to lower your average cost if you invest regularly
through changing market conditions.
Finally, we would like to reiterate a familiar investment message: It's time in
the market that counts, not market timing. First American adheres to this
philosophy. Across our comprehensive array of stock and bond mutual funds, we
take a long-term perspective to money management while maintaining flexibility
to benefit from short-term fluctuations. In addition, our tradition of
conservative management and innovative products can help build a winning
strategy for any investor.
TAKE TIME TO REVISIT YOUR ASSET ALLOCATION
- --------------------------------------------------------------------------------
From time to time, you may need to refine your asset allocation to reflect your
changing goals or risk tolerance. Should that need arise, please don't hesitate
to contact your investment professional. Your investment professional can offer
a range of First American funds to meet any need, plus the advice to help you
reach your investment goals.
3 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
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TAX FREE BOND FUNDS
In a market where interest rate trends have the greatest impact on investment
performance, we experienced two distinctly different environments in the fiscal
year ended September 30, 1999. The net result was a relatively difficult year
for the municipal bond market.
Things started out in a favorable direction over the final three months of 1998.
Interest rates were trending down as a result of overseas turmoil. It appeared
the U.S. economy might finally be slowing, possibly even moving toward a
recession. Municipal bonds were viewed as a fairly attractive investment and our
funds performed well.
Things began to change quickly in 1999. The U.S. economy regained strength and
renewed fears about inflation took center stage. That's typically bad news for
bonds and this case was no exception. Investors steered away from the bond
market and interest rates began a quick ascent.
Coinciding with the interest rate spike was a decrease in the available supply
of municipal bonds. Many government entities slowed debt issuance either due to
concerns about paying higher yields or because increasing tax revenues decreased
the need to take on new debt. So far in 1999, the total supply of municipal
bonds declined by about 20% from the year earlier. This added to the market's
difficulties.
A major measuring stick for municipal bonds is how their yields stack up to
those of U.S. Treasury bonds on an after-tax basis. If municipal yields appear
to offer an advantage, a number of large buyers, including insurance companies,
will choose to invest in municipal bonds, adding to the demand and driving bond
prices up.
In the earlier part of the fiscal year, these so-called "crossover buyers" were
major players in the market for tax-free bonds. But as the year progressed, they
began to favor corporate bonds. This was especially true in the summer, as new
corporate bond offerings flooded the market, attracting crossover buyers in
droves.
That left the municipal bond market in an undervalued state as the fiscal year
came to a close. Within the municipal market itself, recent trends favored
higher quality bonds, as investors seemed to want to avoid securities from
issuers with lower credit ratings.
4 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
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All of these trends have made municipal bonds more attractive in the near term,
with lower-rated and nonrated securities offering the greater value.
Our funds emphasize bonds with longer maturities. History tells us that a bond
portfolio that tends to take a more aggressive stance in terms of bond maturity
ultimately benefits from that position, even though it may be more volatile in
the short term. Bonds with longer maturities usually offer higher yields. What's
more, in a low-inflation environment like we've enjoyed for a number of years,
bond yields tend to move favorably. A downward interest rate trend will reward
longer-term bonds the most.
Since interest rates were rising through most of the past few months, most of
the portfolios took a slightly less aggressive approach in terms of bond
maturities.
Going forward, there are plenty of reasons for optimism in the municipal bond
marketplace. The glut of corporate bond offerings should taper off as the new
year approaches. In addition, yields on municipal bonds are beginning to look
very attractive again when compared to Treasury bonds. Finally, it seems likely
that the dramatic rise in interest rates we experienced in recent months may
subside.
All of these factors should attract far more interest in the municipal bond
market among investors and create the foundation for a solid year ahead.
The following graphs compare First American fund performance with unmanaged
indices. Indices do not pay management fees to cover costs of shareholder
services and fund operating costs, or transaction costs to buy and sell
securities. Unlike indices, mutual funds are never 100% invested because they
need cash on hand to redeem shares. In addition, the performance shown for the
funds includes all fund expenses and fees. If operating expenses such as the
funds had been applied to the indices, their performance would have been lower.
Please remember that an index is simply a measure of performance and one cannot
invest in it directly.
Total return measures performance, assuming that all dividends and capital gains
distributions were reinvested. Total return, both with and without a sales
charge, has been presented. All total returns are quoted for Class A shares
before sales charges. The adjusted figures for Class A shares include the effect
of paying the maximum initial sales charge of 2.50% on all tax-free bond funds.
The adjusted figures for Class C shares include the effect of paying the maximum
initial sales charge of 1.00% for Minnesota Tax Free and Tax Free funds.
5 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
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TAX FREE BOND FUNDS
CALIFORNIA INTERMEDIATE TAX FREE
INVESTMENT OBJECTIVE
SEEKS CURRENT INCOME EXEMPT FROM FEDERAL AND CALIFORNIA STATE INCOME
TAX, CONSISTENT WITH PRESERVATION OF CAPITAL
In a fairly difficult year for the bond market in general, California
Intermediate Tax Free Fund had a return of -0.40% for the fiscal year ending
September 30, 1999.
Bonds issued by the state of California and municipalities within the state
tended to perform better than similar bonds issued around the nation. This was
due in large part to the state's improving economic strength. Tax revenues
increased, helping to solidify the budget situation for government entities
throughout the state. Another helpful factor was that California's economy
proved to be somewhat resilient to Asia's economic problems, even though exports
to that region have a greater impact on California than almost any other state.
The continuing confidence in California's economy resulted in a recent increase
in the state's credit rating, which makes its bonds even more attractive. That,
along with our expectation that interest rates should level off in the months to
come, creates a positive environment for the fund in the year ahead.
VALUE OF A $10,000 INVESTMENT
[PLOT POINTS CHART]
<TABLE>
<CAPTION>
FIRST FIRST FIRST
AMERICAN AMERICAN AMERICAN LEHMAN LIPPER CA
CA INTERM. CA INTERM. CA INTERM. 7-YEAR INTERMEDIATE
TAX FREE FUND, TAX FREE FUND, TAX FREE FUND, MUNICIPAL MUNICIPAL FUNDS
CLASS A CLASS A ADJUSTED CLASS Y INDEX AVERAGE
------- ---------------- ------- ----- -------
<S> <C> <C> <C> <C> <C>
5/1992 $10,000 $ 9,750 $10,000 $10,000 $10,000
9/1992 10,341 10,083 10,331 10,439 10,385
9/1993 11,290 11,008 11,291 11,578 11,542
9/1994 11,275 10,993 11,264 11,503 11,388
9/1995 12,224 11,918 12,212 12,686 12,421
9/1996 12,725 12,407 12,713 13,249 13,030
9/1997 13,653 13,312 13,626 14,307 14,019
9/1998 14,718 14,350 14,688 15,433 15,059
9/1999 14,659 14,292 14,644 15,522 14,994
</TABLE>
PAST PERFORMANCE OF THE FUND IS NOT INDICATIVE OF FUTURE PERFORMANCE.
ANNUALIZED PERFORMANCE SINCE
1 YEAR 3 YEAR 5 YEAR INCEPTION
- --------------------------------------------------------------------------------
Class A -0.40% 4.83% 5.39% 5.35%
- --------------------------------------------------------------------------------
Class A adjusted -2.93% 3.95% 4.85% 4.98%
- --------------------------------------------------------------------------------
Class Y -0.30% 4.83% 5.39% 5.34%
- --------------------------------------------------------------------------------
Lehman 7 Year Muni. Bond 0.58% 5.42% 6.18% 6.18%
- --------------------------------------------------------------------------------
Lipper CA Intermediate Municipal -0.43% 4.74% 5.64% 5.35%
- --------------------------------------------------------------------------------
Past performance of the fund is not indicative of future performance.
The inception date of the Class A shares and the Class Y shares is 8/8/97. The
performance reflected in the table begins on 5/31/92, the inception date of the
common trust fund. Actual since inception returns from 8/8/97 for Class A shares
is 3.86%, Class A shares adjusted is 2.62%, Class Y shares is 3.86%.
The performance reflected in the graph begins on 5/31/92 and represents past
performance of U.S. Bank's internally managed common trust fund, adjusted for
fees and expenses for periods prior to 8/8/97, the inception date of the First
American California Intermediate Tax Free Fund. The common trust fund was not
registered under the 1940 Act and therefore was not subject to certain
investment restrictions that may have adversely affected performance.
Performance reflects voluntary fee waivers in effect. In absence of such fee
waivers, total returns would be reduced.
6 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
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TAX FREE BOND FUNDS
COLORADO INTERMEDIATE TAX FREE
INVESTMENT OBJECTIVE
SEEKS CURRENT INCOME EXEMPT FROM FEDERAL AND COLORADO STATE INCOME TAX,
CONSISTENT WITH PRESERVATION OF CAPITAL
While rising interest rates made for a more difficult environment, a very strong
state economy helped to bolster the market for tax-free bonds in the state. By
the end of the fiscal year, September 30, 1999, Colorado Intermediate Tax Free
Fund generated a return of -0.88%.
The supply of tax-free bonds in the state rose dramatically, contrary to the
national trend of a shrinking supply of municipal bonds. This was due to a large
number of new school bond offerings in the state, including the largest ever for
Denver's schools.
The state's economy remains strong, helping to generate significant tax revenue
for government entities and keeping credit quality high. We took advantage of
our in-house research capabilities to identify selected higher-yielding bonds
issued by municipalities with lower credit ratings in an effort to boost the
fund's yield, without substantially altering the funds high quality profile.
In addition, we positioned the fund a bit more defensively, reducing the average
maturity of our holdings to provide some downside protection given the negative
interest rate environment.
With Colorado's economy continuing to grow and the possibility that the rising
interest rate trend will subside, the fund should be well positioned for the
year ahead.
VALUE OF A $10,000 INVESTMENT
[PLOT POINTS CHART]
<TABLE>
<CAPTION>
FIRST FIRST FIRST LIPPER
AMERICAN AMERICAN AMERICAN LEHMAN OTHER STATES
CO INTERM. CO INTERM. CO INTERM. 7-YEAR INTERMEDIATE
TAX FREE FUND, TAX FREE FUND, TAX FREE FUND, MUNICIPAL MUNICIPAL FUNDS
CLASS A CLASS A ADJUSTED CLASS Y INDEX AVERAGE
------- ---------------- ------- ----- -------
<S> <C> <C> <C> <C> <C>
4/1994 $10,000 $ 9,750 $10,000 $10,000 $10,000
9/1994 10,118 9,865 10,128 10,127 10,086
9/1995 10,985 10,710 10,986 11,169 10,965
9/1996 11,467 11,180 11,468 11,665 11,403
9/1997 12,282 11,975 12,283 12,596 12,186
9/1998 13,195 12,865 13,183 13,587 13,008
9/1999 13,079 12,752 13,042 13,666 12,852
</TABLE>
PAST PERFORMANCE OF THE FUND IS NOT INDICATIVE OF FUTURE PERFORMANCE.
ANNUALIZED PERFORMANCE SINCE
1 YEAR 3 YEAR 5 YEAR INCEPTION
- --------------------------------------------------------------------------------
Class A -0.88% 4.48% 5.27% 5.47%
- --------------------------------------------------------------------------------
Class A adjusted -3.36% 3.59% 4.74% 4.98%
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Class Y -1.07% 0.32% 5.19% 5.42%
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Lehman 7-Year Muni. Bond 0.58% 5.42% 6.18% 5.93%
- --------------------------------------------------------------------------------
Lipper Other States Intermediate Muni. -1.20% 4.12% 5.03% 4.79%
- --------------------------------------------------------------------------------
Past performance of the fund is not indicative of future performance.
The inception date of the Class A and Class Y shares is 4/4/94. The performance
reflected in the graph begins on 4/30/94. The performance reflected in the table
begins on the inception date of Class A and Class Y shares.
Performance reflects voluntary fee waivers in effect. In absence of such fee
waivers, total returns would be reduced.
7 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
TAX FREE BOND FUNDS
INTERMEDIATE TAX FREE
INVESTMENT OBJECTIVE
SEEKS CURRENT INCOME EXEMPT FROM FEDERAL INCOME TAX,
CONSISTENT WITH PRESERVATION OF CAPITAL
In a seesaw year for the municipal bond market, Intermediate Tax Free Fund
finished with a total return of -0.78% for the fiscal year ended September 30,
1999.
The fund benefited from positive market trends near the end of 1998, as
municipal bonds were viewed favorably by the market. However, that changed early
in 1999, and a less friendly environment followed.
Throughout the year, we increased the focus on keeping the vast majority of the
fund's holdings in bonds that mature in five to 12 years. Most bonds with very
short and very long maturities were sold off. Over the long run, this should
allow the fund to take advantage of yield trends that historically favor
securities with an intermediate maturity.
While interest rates have been rising through most of 1999, they may be close to
topping out in the current cycle. Municipal bonds also seem to be one of the
more attractively priced segments of the entire bond market as we begin another
fiscal year. We believe this creates a favorable environment for the fund going
forward.
VALUE OF A $10,000 INVESTMENT
[PLOT POINTS CHART]
<TABLE>
<CAPTION>
FIRST FIRST FIRST LEHMAN 7-YEAR
AMERICAN AMERICAN AMERICAN GENERAL LEHMAN LIPPER 7-YEAR
INTERM. INTERM. INTERM. OBLIGATIONS 7-YEAR INTERMEDIATE
TAX FREE FUND, TAX FREE FUND, TAX FREE FUND, MUNICIPAL MUNICIPAL MUNICIPAL FUNDS
CLASS A CLASS A ADJUSTED CLASS Y INDEX INDEX* AVERAGE
------- ---------------- ------- ----- ------ -------
<S> <C> <C> <C> <C> <C> <C>
9/1989 $10,000 $ 9,750 $10,000 $10,000 $10,000 $10,000
9/1990 10,528 10,265 10,528 10,690 10,715 10,621
9/1991 11,488 11,201 11,488 11,964 12,028 11,759
9/1992 12,319 12,011 12,319 13,103 13,207 12,851
9/1993 13,386 13,051 13,386 14,554 14,648 14,293
9/1994 13,218 12,888 13,218 14,417 14,552 14,136
9/1995 14,428 14,067 14,428 15,960 16,050 15,392
9/1996 15,070 14,693 15,055 16,671 16,762 16,091
9/1997 16,101 15,698 16,072 18,018 18,100 17,275
9/1998 17,234 16,803 17,197 19,464 19,525 18,510
9/1999 17,100 16,672 17,061 19,569 19,638 18,370
</TABLE>
PAST PERFORMANCE OF THE FUND IS NOT INDICATIVE OF FUTURE PERFORMANCE.
ANNUALIZED PERFORMANCE SINCE
1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION
- --------------------------------------------------------------------------------
Class A -0.78% 4.30% 5.28% 5.51% 5.58%
- --------------------------------------------------------------------------------
Class A adjusted -3.24% 3.44% 4.76% 5.24% 5.35%
- --------------------------------------------------------------------------------
Class Y** -0.79% 4.28% 5.25% 5.49% 5.56%
- --------------------------------------------------------------------------------
Lehman 7-Year G.O. Bond 0.54% 5.54% 6.34% 6.96% 6.96%
- --------------------------------------------------------------------------------
Lehman 7-Year Muni. Bond 0.58% 5.42% 6.18% - 5.93%
- --------------------------------------------------------------------------------
Lipper Intermediate Muni. -0.76% 4.52% 5.42% 6.23% 6.41%
- --------------------------------------------------------------------------------
Past performance of the fund is not indicative of future performance.
The inception date of the Class A shares is 12/22/87, and the inception date of
the Class Y shares is 2/4/94. The 10-year performance reflected in the graph
begins on 9/30/89. The performance reflected in the table begins on the
inception date of Class A shares.
*The inception date for the Lehman 7-Year Municipal Index is 12/31/89. The
figure shown utilizes the Lehman 7-Year General Obligations Municipal Index
prior to that date.
**The performance presented links the performance of Class A shares from
inception on 12/22/87 to 2/4/94 with the performance of Class Y shares after its
inception on 2/4/94. The since inception return for Class Y shares from 2/4/94,
is 4.08%.
Previously, the fund used the Lehman 7-Year G.O. Bond Index as a benchmark.
Going forward, the fund will use the Lehman 7-Year Municipal Bond Index as a
comparison, because it is better suited to the fund's objective.
Performance reflects voluntary fee waivers in effect. In absence of such fee
waivers, total returns would be reduced.
8 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
TAX FREE BOND FUNDS
MINNESOTA INTERMEDIATE TAX FREE
INVESTMENT OBJECTIVE
SEEKS CURRENT INCOME EXEMPT FROM FEDERAL AND MINNESOTA STATE INCOME TAX,
CONSISTENT WITH PRESERVATION OF CAPITAL
Rising interest rates created a difficult environment for bond investors and
this was reflected in Minnesota Intermediate Tax Free Fund, which finished the
year ended September 30, 1999, with a return of -0.43%.
While the upward trend in interest rates had the biggest impact on the fund's
return, there was good news as well. Minnesota's economy remained one of the
strongest in the nation, with a very low unemployment rate and extremely strong
tax revenues. A budget surplus in the state allowed taxpayers to receive a
rebate in 1999. This exemplifies why the state has earned the highest credit
rating available.
The supply of new bonds declined sharply in the state, creating a less favorable
supply/demand situation for investors. Despite this tight market, we were able
to put a little more emphasis on higher-yielding bonds issued by municipalities
with lower credit ratings in an effort to boost the fund's return, without
substantially altering the funds high-quality profile.
All signs remain upbeat for Minnesota's economy in the months ahead.
That fact, combined with what could be an improving interest rate environment,
sets the fund on a positive course for the next fiscal year.
VALUE OF A $10,000 INVESTMENT
[PLOT POINTS CHART]
<TABLE>
<CAPTION>
FIRST FIRST FIRST LIPPER
AMERICAN AMERICAN AMERICAN LEHMAN OTHER STATES
MN INTERM. MN INTERM. MN INTERM. 7-YEAR INTERMEDIATE
TAX FREE FUND, TAX FREE FUND, TAX FREE FUND, MUNICIPAL MUNICIPAL FUNDS
CLASS A CLASS A ADJUSTED CLASS Y INDEX AVERAGE
------- ---------------- ------- ----- -------
<S> <C> <C> <C> <C> <C>
2/1994 $10,000 $ 9,750 $10,000 $10,000 $10,000
9/1994 9,852 9,606 9,863 9,930 9,854
9/1995 10,686 10,419 10,685 10,951 10,712
9/1996 11,199 10,919 11,198 11,438 11,140
9/1997 11,951 11,653 11,917 12,350 11,905
9/1998 12,764 12,445 12,730 13,322 12,709
9/1999 12,709 12,391 12,674 13,400 12,556
</TABLE>
PAST PERFORMANCE OF THE FUND IS NOT INDICATIVE OF FUTURE PERFORMANCE.
ANNUALIZED PERFORMANCE SINCE
1 YEAR 3 YEAR 5 YEAR INCEPTION
- --------------------------------------------------------------------------------
Class A -0.43% 4.31% 5.22% 4.34%
- --------------------------------------------------------------------------------
Class A adjusted -2.89% 3.44% 4.68% 3.86%
- --------------------------------------------------------------------------------
Class Y -0.44% 4.21% 5.14% 4.29%
- --------------------------------------------------------------------------------
Lehman 7-Year Muni. Bond 0.58% 5.42% 6.18% 5.38%
- --------------------------------------------------------------------------------
Lipper Other States Intermediate Muni -1.20% 4.12% 5.03% 4.79%
- --------------------------------------------------------------------------------
Past performance of the fund is not indicative of future performance.
The inception date of Class A and Y shares is 2/25/94. The performance reflected
in the graph begins on 2/28/94. The performance reflected in the table begins on
the inception date of Class A and Y shares.
Performance reflects voluntary fee waivers in effect. In absence of such fee
waivers, total returns would be reduced.
9 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
TAX FREE BOND FUNDS
MINNESOTA TAX FREE
INVESTMENT OBJECTIVE
SEEKS MAXIMUM CURRENT INCOME EXEMPT FROM BOTH FEDERAL AND MINNESOTA
INCOME TAX, CONSISTENT WITH PRUDENT INVESTMENT RISK
A strong state economy and limited supply helped Minnesota bond values in a
rising interest rate environment through much of the fiscal year ended September
30, 1999. Minnesota Tax Free Fund generated a return of -1.31% through the
period.
Minnesota's economy continues to be one of the most reliable in the nation, with
low unemployment and strong tax revenues. This allowed the state to rebate a
budget surplus to taxpayers in 1999. It also helped maintain the state's credit
rating at the highest levels.
Along with rising interest rates, the other factor that had a negative impact on
the fund was a shrinking supply of bonds issued by the state and municipalities.
A shrinking supply makes it difficult to add bonds that represent good values.
Therefore, this limited the attractiveness of yields for newly issued bonds,
which also reduced the return potential of these bonds.
Still, the state's overall economic strength does work to the advantage of
shareholders. It means that bond issuers should be reliable in the timely
payment of interest and principal on their debt securities. This factor,
combined with our expectation that the upturn in interest rates may slow or top
out, makes for what we believe will be a positive environment for the fund going
forward.
VALUE OF A $10,000 INVESTMENT
[PLOT POINTS CHART]
<TABLE>
<CAPTION>
FIRST FIRST FIRST
AMERICAN AMERICAN AMERICAN LEHMAN
MN TAX FREE MN TAX FREE MN TAX FREE MUNICIPAL LIPPER MN
FUND, FUND, CLASS TAX FREE FUND, BOND MUNICIPAL FUNDS
CLASS A A ADJUSTED CLASS Y INDEX AVERAGE
------- ---------- ------- ----- -------
<S> <C> <C> <C> <C> <C>
9/1989 $10,000 $ 9,750 $10,000 $10,000 $10,000
9/1990 10,530 10,267 10,530 10,682 10,584
9/1991 11,845 11,549 11,845 12,091 11,797
9/1992 12,978 12,653 12,978 13,356 12,887
9/1993 14,602 14,237 14,602 15,057 14,488
9/1994 14,145 13,792 14,145 14,690 14,020
9/1995 15,755 15,361 15,755 16,334 15,277
9/1996 16,738 16,320 16,738 17,320 16,073
9/1997 18,131 17,678 18,122 18,884 17,325
9/1998 19,686 19,194 19,723 20,531 18,663
9/1999 19,429 18,943 19,512 20,387 18,248
</TABLE>
PAST PERFORMANCE OF THE FUND IS NOT INDICATIVE OF FUTURE PERFORMANCE.
ANNUALIZED PERFORMANCE SINCE
1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION
- --------------------------------------------------------------------------------
Class A -1.31% 5.09% 6.55% 6.87% 6.90%
- --------------------------------------------------------------------------------
Class A adjusted -3.75% 4.21% 6.02% 6.59% 6.65%
- --------------------------------------------------------------------------------
Class C - - - - -3.03%
- --------------------------------------------------------------------------------
Class C adjusted - - - - -4.90%
- --------------------------------------------------------------------------------
Class Y* -1.07% 5.24% 6.64% 6.91% 6.94%
- --------------------------------------------------------------------------------
Lehman Muni. Bond -0.70% 5.58% 6.77% 7.38% 7.38%
- --------------------------------------------------------------------------------
Lipper MN Municipal -2.22% 4.34% 5.62% 6.48% 6.75%
- --------------------------------------------------------------------------------
Past performance of the fund is not indicative of future performance.
The performance presented is that of a predecessor fund, Piper Minnesota
Tax-Exempt Fund, which merged with First American Minnesota Tax Free Fund on
7/31/98.
The inception date of the Class A shares is 7/11/88, the inception date of the
Class C shares is 2/1/99, and the inception date of the Class Y shares is
8/1/97. The 10-year performance reflected in the graph begins on 9/30/89. The
performance reflected in the table begins on the inception date of Class A
shares.
*The performance presented links the performance of Class A shares from
inception on 7/11/88 to 8/1/97 with the performance of Class Y shares after its
inception on 8/1/97. The since inception return for Class Y shares from 8/1/97,
is 3.81%.
Performance reflects voluntary fee waivers in effect. In absence of such fee
waivers, total returns would be reduced.
10 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
TAX FREE BOND FUNDS
OREGON INTERMEDIATE TAX FREE
INVESTMENT OBJECTIVE
SEEKS CURRENT INCOME EXEMPT FROM FEDERAL AND OREGON STATE INCOME TAX,
CONSISTENT WITH PRESERVATION OF CAPITAL
While bond prices trended lower in a rising interest rate environment, Oregon
Intermediate Tax Free Fund generated a return of 0.18% for the three-month
period ended September 30, 1999.
The municipal bond market in Oregon offered one significant distinguishing
characteristic in the last year compared to the nation as a whole. The supply of
tax-free bonds issued in the state rose dramatically in the past few months, in
contrast to the national trend of a shrinking supply. The trend was the result
of a number of large bond issues being approved by Oregon taxpayers in the
November, 1998, elections.
This made the bond market somewhat more attractive for investors in Oregon than
in other parts of the country. It allowed us to add bonds with slightly higher
yields without taking increased credit risks. In fact, some shifts were made in
the portfolio to reduce its overall volatility.
The outlook for the state's economy remains strong. Even though Asia's economic
weakness had a negative impact on Oregon's export economy, tax revenues remain
high. This environment sets the stage for a positive year ahead for the fund.
VALUE OF A $10,000 INVESTMENT
[PLOT POINTS CHART]
<TABLE>
<CAPTION>
FIRST FIRST LEHMAN 7-YEAR LIPPER
AMERICAN AMERICAN GENERAL LEHMAN OTHER STATES
OR INTERM. OR INTERM. OBLIGATIONS 7-YEAR INTERMEDIATE
TAX FREE FUND, TAX FREE FUND, MUNICIPAL MUNICIPAL MUNICIPAL
CLASS A CLASS A ADJUSTED INDEX INDEX AVERAGE
------- ---------------- ----- ----- -------
<S> <C> <C> <C> <C> <C>
2/1999 $10,000 $9,750 $10,000 $10,000 $10,000
9/1999 9,850 9,604 9,913 9,907 9,788
</TABLE>
<TABLE>
<CAPTION>
FIRST LEHMAN 7-YEAR LIPPER
AMERICAN GENERAL LEHMAN OTHER STATES
OR INTERM. OBLIGATIONS 7-YEAR INTERMEDIATE
TAX FREE FUND, MUNICIPAL MUNICIPAL MUNICIPAL
SYNTHETIC CLASS Y INDEX INDEX* AVERAGE
----------------- ----- ------ -------
<S> <C> <C> <C> <C>
9/1989 $10,000 $10,000 $10,000 $10,000
9/1990 10,679 10,690 10,715 10,600
9/1991 11,934 11,964 12,028 11,662
9/1992 12,954 13,103 13,207 12,733
9/1993 14,160 14,554 14,648 14,109
9/1994 14,036 14,417 14,552 13,858
9/1995 15,150 15,960 16,050 15,065
9/1996 15,714 16,671 16,762 15,666
9/1997 16,856 18,018 18,100 16,742
9/1998 17,979 19,464 19,525 17,872
9/1999 17,860 19,569 19,638 17,658
</TABLE>
PAST PERFORMANCE OF THE FUND IS NOT INDICATIVE OF FUTURE PERFORMANCE.
ANNUALIZED PERFORMANCE SINCE
1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION
- --------------------------------------------------------------------------------
Class A - - - - -2.22%**
- --------------------------------------------------------------------------------
Class A adjusted - - - - -4.64%**
- --------------------------------------------------------------------------------
Class Y -0.66% 4.36% 4.94% 5.97% 5.76%
- --------------------------------------------------------------------------------
Lehman 7 Year G.O. Bond 0.54% 5.54% 6.34% 6.96% 6.96%
- --------------------------------------------------------------------------------
Lehman 7-Year Muni. Bond 0.58% 5.42% 6.18% - 5.38%
- --------------------------------------------------------------------------------
Lipper Other States Muni. -1.20% 4.12% 5.03% 5.43% -2.12%
- --------------------------------------------------------------------------------
Past performance of the fund is not indicative of future performance.
The inception date of the Class A shares is 2/1/99.
The inception date of the Class Y shares is 8/8/97.
Previously, the fund used the Lehman 7 year G.O. Index as a benchmark. Going
forward, the fund will use the Lehman 7 year Municipal Bond Index as a
comparison, as it is better suited to the fund's objectives.
Performance reflects voluntary fee waivers in effect. In absence of such fee
waivers, total returns would be reduced.
The 10-year performance reflected in the graph begins on 9/30/89 and represents
past performance of U.S. Bank's internally managed common trust fund, adjusted
for fees and expenses for periods prior to 8/8/97, the inception date of the
First American Oregon Intermediate Tax Free Fund Class Y shares. The common
trust fund was not registered under the 1940 Act and therefore was not subject
to certain investment restrictions that may have adversely affected performance.
The performance reflected in the table for Class Y shares begins on 9/30/89, the
inception date of the common trust fund.
*The inception date for the Lehman 7-Year Municipal Index is 12/31/89. The
figure shown utilizes the Lehman 7-Year General Obligations Municipal Index
prior to that date.
**Cumulative since inception return.
Performance reflects voluntary fee waivers in effect. In absence of such fee
waivers, total returns would be reduced.
11 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
TAX FREE BOND FUNDS
TAX FREE
INVESTMENT OBJECTIVE
SEEKS CURRENT INCOME EXEMPT FROM FEDERAL INCOME TAX, CONSISTENT
WITH PRUDENT INVESTMENT RISK
An environment of higher interest rates combined with a reduced supply of
municipal bonds nationwide created a difficult environment for Tax Free Fund for
the fiscal year ended September 30, 1999. The result was a return of -2.81% for
the period.
In late 1998, interest rates were moving down and municipal bonds attracted much
investor attention. That situation reversed early in 1999, as interest rates
climbed and many investors sold off municipal bonds in favor of taxable debt
securities. Tax-free bonds finally regained investor favor relative to taxable
bonds in late August.
While the stronger U.S. economy seemed to be driving interest rates up,
it also helped to improve the budget outlook for most states and municipalities
that issue tax-free bonds. That is a positive trend that will improve credit
quality in the market.
Given our expectation that the trend of higher interest rates could level off
later in 1999, and the solid financial foundation now enjoyed by most issuers of
tax-free bonds, we believe the fund is well positioned for the year ahead.
VALUE OF A $10,000 INVESTMENT
[PLOT POINTS CHART]
<TABLE>
<CAPTION>
FIRST FIRST FIRST LEHMAN LIPPER
AMERICAN AMERICAN AMERICAN MUNICIPAL GENERAL
TAX FREE FUND, TAX FREE FUND, TAX FREE FUND, BOND MUNICIPAL FUNDS
CLASS A CLASS A ADJUSTED CLASS Y INDEX AVERAGE
------- ---------------- ------- ----- -------
<S> <C> <C> <C> <C> <C>
9/1989 $10,000 $ 9,750 $10,000 $10,000 $10,000
9/1990 10,615 10,350 10,615 10,682 10,533
9/1991 12,027 11,726 12,027 12,091 11,913
9/1992 13,311 12,979 13,311 13,356 13,153
9/1993 15,276 14,894 15,276 15,057 14,906
9/1994 14,401 14,041 14,401 14,690 14,329
9/1995 15,884 15,487 15,884 16,334 15,731
9/1996 16,904 16,482 16,904 17,320 16,620
9/1997 18,440 17,980 18,440 18,884 18,064
9/1998 19,991 19,492 20,015 20,531 19,545
9/1999 19,429 18,944 19,483 20,387 18,945
</TABLE>
PAST PERFORMANCE OF THE FUND IS NOT INDICATIVE OF FUTURE PERFORMANCE.
ANNUALIZED PERFORMANCE SINCE
1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION
- --------------------------------------------------------------------------------
Class A -2.81% 4.75% 6.17% 6.87% 6.86%
- --------------------------------------------------------------------------------
Class A adjusted -5.27% 3.86% 5.64% 6.59% 6.62%
- --------------------------------------------------------------------------------
Class C - - - - -4.23%
- --------------------------------------------------------------------------------
Class C adjusted - - - - -6.08%
- --------------------------------------------------------------------------------
Class Y * -2.66% 4.84% 6.23% 6.90% 6.89%
- --------------------------------------------------------------------------------
Lehman Muni Bond -0.70% 5.58% 6.77% 7.38% 7.38%
- --------------------------------------------------------------------------------
Lipper General Municipal -3.07% 4.43% 5.77% 6.72% 7.02%
- --------------------------------------------------------------------------------
Past performance of the fund is not indicative of future performance.
The performance presented is that of a predecessor fund, Piper Tax-Exempt Fund,
which merged with First American Tax Free Fund on 7/31/98.
The inception date of the Class A shares is 7/11/88, the inception date of the
Class C shares is 2/1/99, and the inception date of the Class Y shares is
7/31/98. The 10-year performance reflected in the graph begins on 9/30/89. The
performance reflected in the table begins on the inception date of Class A
shares.
*The performance presented links the performance of Class A shares from
inception on 7/11/88 to 7/31/98 with the performance of Class Y shares after its
inception on 8/3/98. The since inception return for Class Y shares from 7/31/98,
is 0.08%.
Performance reflects voluntary fee waivers in effect. In absence of such fee
waivers, total returns would be reduced.
12 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
REPORT OF INDEPENDENT
AUDITORS SEPTEMBER 30, 1999
To the Shareholders and Board of Directors
First American Investment Funds, Inc.
We have audited the accompanying statements of net assets of the California
Intermediate Tax Free, Colorado Intermediate Tax Free, Intermediate Tax
Free, Minnesota Intermediate Tax Free, Minnesota Tax Free, Oregon
Intermediate Tax Free and Tax Free Funds (certain funds constituting First
American Investment Funds, Inc.) (the "Funds") as of September 30, 1999,
and the related statements of operations, statements of changes in net
assets and financial highlights for the year then ended. These financial
statements and financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits. The statements of
changes in net assets for the year ended September 30, 1998, and the
financial highlights for the periods presented through September 30, 1998,
were audited by other auditors whose reports dated November 13, 1998,
expressed an unqualified opinion on those statements and financial
highlights.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements and financial highlights. Our procedures
included confirmation of securities owned as of September 30, 1999, by
correspondence with the custodian and brokers. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of each of the above listed funds of First American Investment Funds, Inc.
at September 30, 1999, and the results of their operations, changes in
their net assets, and their financial highlights for the year then ended,
in conformity with generally accepted accounting principles.
/s/ Ernst & Young LLP
Minneapolis, Minnesota
November 2, 1999
13 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS SEPTEMBER 30, 1999
CALIFORNIA INTERMEDIATE TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
MUNICIPAL BONDS -- 96.4%
REVENUE BONDS -- 46.1%
AUTHORITY -- 3.4%
Orange County Public Financing Authority,
Waste Management (AMBAC) (AMT)
4.700%, 12/01/05 $500 $ 502
San Jose Financing Authority, Convention
Center Project, Series C (MLO)
5.750%, 09/01/01 250 258
San Francisco Bay Area Transportation
Financing Authority (ACA)
5.500%, 08/01/05 690 713
----------
1,473
----------
BUILDING -- 1.6%
California State Public Works, Department
of Corrections, Series A (AMBAC) (MLO)
6.000%, 01/01/06 545 589
Inglewood Public Financing
Authority (AMBAC)
5.900%, 05/01/01 100 103
----------
692
----------
EDUCATION -- 6.0%
California State Educational Facilities
Authority, Occidental College Project,
Callable 10/01/07 @ 102 (MBIA)
5.300%, 10/01/10 500 514
California State Educational Facilities
Authority, Pooled College & University
Projects, Series A
4.850%, 12/01/01 500 509
California State Public Works Board,
Community Colleges (MLO)
5.250%, 03/01/08 450 463
California State Public Works Board, Leasing
Regents University of California
5.250%, 12/01/08 850 882
California State Public Works Board,
Various University Projects
5.000%, 06/01/03 150 155
California State Public Works Board,
Various University Projects
5.900%, 10/01/01 100 104
----------
2,627
----------
HEALTHCARE -- 3.6%
California State Health Facilities Authority,
Callable 08/01/08 @100
5.375%, 08/01/09 250 254
John C. Fremont Hospital District,
Health Facility (CMI)
6.000%, 06/01/04 300 314
Marysville Hospital, Series A,
Callable 01/01/09 @ 102 (AMBAC)
5.000%, 01/01/10 500 498
Palomar Pomerado, Health Systems (MBIA)
4.600%, 11/01/08 500 491
----------
1,557
----------
CALIFORNIA INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
HOUSING -- 7.8%
California State Housing Finance Agency,
Series A (MBIA)
5.000%, 08/01/03 $ 180 $ 182
California State Housing Finance Agency,
Series E (MBIA)
5.850%, 08/01/04 150 154
California State Housing Finance Agency,
Series G, Callable 08/01/04 @ 102
6.550%, 02/01/05 150 155
California Statewide Community
Development Authority, Archstone
Communities Trust,
Mandatory Put @ 100
5.300%, 06/01/08 (A) 500 493
California Statewide Community
Development Authority, Archstone
Seascape, Mandatory Put @ 100
5.250%, 06/01/08 500 491
California Statewide Community
Development Authority, Evans
Withycombe, Mandatory Put @ 100
5.200%, 06/15/09 (A) 500 485
Los Angeles Earthquake Rehabilitation,
Series C, Callable 01/01/00 @ 100
(AMT) (FNMA)
4.850%, 07/01/02 300 300
Redondo Beach Redevelopment Agency,
Residential Mortgages, Series A (FNMA)
5.150%, 06/01/03 60 60
Sacramento County Multifamily Housing,
Fairways I Apartments,
Mandatory Put @ 100 (FNMA)
5.875%, 02/01/03 (A) 85 85
Sacramento County Multifamily Housing,
Parcwood Apartments,
Mandatory Put @ 100 (CGLI)
4.800%, 09/01/02 (A) 1,000 1,001
----------
3,406
----------
PARK DISTRICT -- 3.0%
Los Angeles County Public Works
Financing Authority, Regional Park &
Open Space District, Series A,
Callable 10/01/07 @ 101
5.000%, 10/01/19 265 242
Los Angeles County Public Works
Financing Authority, Regional Park &
Open Space District, Series A,
Escrowed to Maturity
5.500%, 10/01/02 500 520
5.625%, 10/01/03 500 527
----------
1,289
----------
SANITATION DISTRICT -- 1.2%
Los Angeles Municipal Improvement
Corporation Sanitation Equipment
(FSA) (MLO)
6.000%, 02/01/07 500 542
----------
14 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
CALIFORNIA INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
SCHOOL DISTRICT -- 3.6%
Golden West Schools Financing
Authority, Series A (MBIA)
5.700%, 02/01/13 $720 $ 753
5.750%, 02/01/14 770 803
----------
1,556
----------
TRANSPORTATION -- 2.5%
San Francisco Airport Commission,
Second Series (AMT) (FGIC)
5.400%, 05/01/06 500 520
San Joaquin Hills Transportation Corridor
Agency, Zero Coupon Bond (MBIA)
4.700%, 01/15/05 (B) 705 555
----------
1,075
----------
UTILITIES -- 13.4%
Anaheim Electric
4.800%, 10/01/02 500 510
Anaheim Public Financing Authority,
Mandatory Put @ 100 (AMBAC)
4.625%, 10/01/05 (A) 500 500
Burbank Public Service Department
(AMBAC)
6.100%, 06/01/01 200 207
California State Department of Water,
Central Valley Project,
Callable 12/01/05 @ 101
5.000%, 12/01/12 500 493
California State Department of Water,
Central Valley Project,
Pre-refunded @ 101
5.300%, 06/01/06 (C) 750 790
California State Resource Efficiency
Finance Authority, First Resource
Efficiency Project (AMBAC)
5.200%, 07/01/02 500 517
Contra Costa Water District, Series G (MBIA)
5.400%, 10/01/03 500 524
Escondido Civic Center Project,
Escrowed to Maturity (AMBAC) (MLO)
5.800%, 09/01/04 100 107
Inland Empire Solid Waste Financing
Authority, Landfill Improvements
Project, Series B (AMT) (FSA) (MLO)
5.750%, 02/01/04 500 527
Los Angeles Department of Water & Power,
Callable 04/15/02 @ 102
6.100%, 04/15/03 250 266
Metropolitan Water District Southern
California, Series B,
Callable 07/01/06 @ 102 (MBIA)
4.875%, 07/01/10 500 496
5.000%, 07/01/14 500 482
Northern California Transmission Agency,
Cal-Ore Project (MBIA)
6.000%, 05/01/02 100 105
Redding Joint Powers Finance Authority,
Waste Water Project,
Callable 12/01/02 @ 102 (FGIC)
5.600%, 12/01/03 100 106
CALIFORNIA INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
South County Regional Waste Water
Authority (AMBAC)
5.600%, 08/01/02 $100 $ 104
Turlock Irrigation District, Series A,
Callable 07/01/02 @ 102 (MBIA)
6.000%, 01/01/04 100 106
----------
5,840
----------
TOTAL REVENUE BONDS 20,057
----------
GENERAL OBLIGATIONS -- 24.1%
Alisal Unified School District, Series C,
Zero Coupon Bond (FGIC)
5.050%, 08/01/08 (B) 860 559
California State (AMBAC)
6.300%, 11/01/02 300 320
California State, Housing & Homeless (AMT)
5.750%, 10/01/01 300 311
Fontana School District (MBIA)
5.550%, 07/01/04 500 529
Fresno Unified School District (MBIA)
6.050%, 08/01/11 500 547
Golden West Schools Financing Authority,
Zero Coupon Bond (MBIA)
5.000%, 02/01/12 (B) 535 277
Industry, Callable 07/01/02 @ 100.25 (FGIC)
5.800%, 07/01/04 100 104
La Canada Unified School District (FGIC)
5.100%, 08/01/03 400 414
Los Angeles County Public Works
Financing Authority, Capital Construction,
Callable 03/01/03 @ 102
4.800%, 03/01/04 400 408
Los Angeles School District,
Callable 07/01/08 @ 102 (FGIC)
4.900%, 07/01/09 300 301
Los Angeles, Series A,
Callable 09/01/04 @ 102 (MBIA)
5.800%, 09/01/07 250 272
Martinez County School District,
Callable 08/01/00 @ 102
5.750%, 08/01/05 150 154
Mt. Diablo Unified School District,
Community Facilities Project,
Callable 08/01/02 @ 102 (AMBAC)
5.800%, 08/01/03 100 106
Natomas Unified School District (MBIA)
5.850%, 03/01/15 500 526
Oxnard School District (MBIA)
5.000%, 08/01/05 600 620
Pomona Unified School District,
Callable 08/01/01 @ 103 (MBIA)
6.150%, 08/01/15 500 536
Pomona Unified School District,
Series A (MBIA)
5.450%, 02/01/06 250 263
5.500%, 08/01/06 250 265
Puerto Rico Commonwealth (MBIA)
6.250%, 07/01/08 500 552
Rio Linda School District,
Callable 08/01/08 @ 100 (FSA)
5.000%, 08/01/09 500 506
15 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS SEPTEMBER 30, 1999
CALIFORNIA INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
Roseville High School District,
Callable 08/01/00 @ 102
5.750%, 08/01/02 $100 $ 103
San Francisco Fire Department Facility
Project, Series C (FGIC)
7.000%, 06/15/03 300 329
San Francisco Library Facilities Project,
Series D, Callable 06/15/00 @ 102
5.700%, 06/15/01 250 258
San Francisco Library Facilities Project,
Series D, Pre-refunded @ 102
5.800%, 06/15/00 (C) 250 259
San Francisco, Public Improvements,
Series B, Pre-refunded @ 100
6.700%, 12/15/00 (C) 200 207
South Pasadena Unified School District,
Zero Coupon Bond (FGIC)
4.900%, 11/01/12 (B) 740 368
Sulphur Springs Unified
School District, Series B
5.400%, 03/01/02 500 516
Walnut Valley School District,
Series A (MBIA)
6.800%, 02/01/07 250 283
6.850%, 08/01/07 250 285
West Covina Redevelopment Agency,
Community Facilities District, Special Tax
5.125%, 09/01/05 300 307
----------
10,485
----------
CERTIFICATES OF PARTICIPATION -- 18.6%
Bakersfield Convention Center Project
(MBIA) (MLO)
5.500%, 04/01/10 250 258
California Statewide Community
Development Authority, Community
Hospital of Monterey Peninsula,
Callable 08/18/08 @ 101 (MBIA)
5.250%, 08/15/09 500 512
California Statewide Community
Development Authority,
Internext Group Project
4.000%, 04/01/01 700 698
California Statewide Community
Development Authority, Series A,
Callable 08/01/03 @ 102 (CMI)
5.200%, 08/01/04 200 206
Grossmont, Unified High School District,
Callable 09/01/08 @102 (FSA)
5.400%, 09/01/13 300 303
Kern County Board of Education,
Callable 05/01/08 @ 102 (MBIA) (MLO)
5.200%, 05/01/12 905 899
5.250%, 05/01/13 350 346
Modesto Water Utility System
Refinancing Project (FGIC)
5.000%, 10/01/05 740 765
Oceanside Water System (AMBAC)
5.100%, 08/01/02 500 516
Orange County Juvenile Justice
Center Facility (AMBAC) (MLO)
5.750%, 06/01/01 100 103
CALIFORNIA INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
Paradise Unified School District,
Measure M Project, Series A,
Callable 09/01/05 @ 102
(AMBAC) (MLO)
5.250%, 09/01/07 $300 $ 313
Rancho Mirage Joint Powers
Finance Authority, Eisenhower
Medical Center, Series A,
Callable 07/01/07 @ 102 (MBIA)
5.125%, 07/01/08 500 510
Riverside County Public Financing
Authority, Air Force Village West
5.125%, 05/15/05 525 516
San Diego County Water Authority,
Callable 05/01/08 @ 101
5.000%, 05/01/13 505 491
San Diego County Water Authority, Series A
5.250%, 05/01/06 500 521
San Mateo County Board of Education,
Callable 05/01/08 @ 101 (MLO)
4.600%, 05/01/12 505 462
Tulare County Financing Project,
Series A (MBIA) (MLO)
5.600%, 11/15/02 100 104
University of California, Various
Capital Projects, Series B,
Callable 09/01/01 @ 102
(MBIA) (MLO)
5.350%, 09/01/02 (D) 300 311
West Covina Civic Center Project,
(FSA) (MLO)
5.250%, 09/01/07 250 261
----------
8,095
----------
TAX REVENUE -- 7.6%
Inglewood Redevelopment Agency,
Tax Allocation (AMBAC)
5.250%, 05/01/13 450 447
Los Angeles County Transportation
Commission, Series B (FGIC)
5.875%, 07/01/02 250 262
6.000%, 07/01/04 250 269
Montebello Community Redevelopment
Agency, Tax Allocation (FSA)
4.750%, 09/01/07 270 273
Orange County Transportation Authority,
Callable 02/15/02 @ 102
5.700%, 02/15/03 900 945
Santa Ana Community Redevelopment
Agency, Tax Allocation, Series A,
Pre-refunded @ 102
6.500%, 12/15/00 (C) 840 884
William S. Hart Joint School Financing
Authority, Special Tax,
Callable 09/01/05 @ 102 (FSA)
6.100%, 09/01/06 200 219
----------
3,299
----------
TOTAL MUNICIPAL BONDS
(Cost $41,440) 41,936
----------
16 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
CALIFORNIA INTERMEDIATE TAX FREE FUND
(CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- ---------------------------------------------------------------------
MONEY MARKET FUND -- 2.3%
Provident California Tax Free
Money Market 1,015,172 $ 1,015
----------
TOTAL MONEY MARKET FUND
(Cost $1,015) 1,015
----------
TOTAL INVESTMENTS -- 98.7%
(Cost $42,455) 42,951
----------
OTHER ASSETS AND LIABILITIES, NET -- 1.3% 560
----------
NET ASSETS:
Portfolio Capital--Class A
($.0001 par value--2 billion authorized)
based on 206,390 outstanding shares 2,048
Portfolio Capital--Class Y
($.0001 par value--2 billion authorized)
based on 4,192,155 outstanding shares 41,011
Undistributed net investment income 19
Accumulated net realized loss on investments (63)
Net unrealized appreciation of investments 496
----------
TOTAL NET ASSETS -- 100.0% $ 43,511
----------
Net asset value and redemption price
per share--Class A $ 9.89
Maximum sales charge of 2.50% (E) 0.25
----------
Offering price per share--Class A $ 10.14
----------
Net asset value, offering price, and redemption
price per share--Class Y $ 9.89
----------
(A) Mandatory Put Security--the mandatory put 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) 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) Security sold within the terms of a private placement memorandum, exempt
from registration under section 144a of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or other "qualified
institutional investors." These securities have been determined to be liquid
under guidelines established by the Board of Directors.
(E) 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 Corporation
AMT--Alternative Minimum Tax
CGLI--Connecticut General Life Insurance
CMI--California Mortgage Insurance Program
FGIC--Financial Guaranty Insurance Corporation
FNMA--Federal National Mortgage Association
FSA--Financial Security Assurance
MBIA--Municipal Bond Insurance Association
MLO--Municipal Lease Obligation
The accompanying notes are an integral part of the financial statements.
COLORADO INTERMEDIATE TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
MUNICIPAL BONDS -- 96.5%
GENERAL OBLIGATIONS -- 42.8%
Adams & Arapahoe Counties Joint
School District #28-J,
Callable 12/01/06 @ 102 (FGIC) (STAID)
5.750%, 12/01/07 $1,000 $ 1,062
Adams County School District #12,
Callable 12/15/03 @ 100 (FGIC)
6.200%, 12/15/08 455 483
Arapahoe County School District #6,
Littleton, Callable 12/01/06 @ 102
(STAID)
5.125%, 12/01/09 1,000 1,013
5.250%, 12/01/10 1,000 1,015
Boulder Valley School District #RE-2,
Pre-refunded @ 101 (STAID)
5.950%, 12/01/04 (A) 1,000 1,071
Brighton, Callable 12/01/01 @ 101 (MBIA)
6.350%, 12/01/05 95 100
Colorado Springs, Callable 09/01/03 @ 100
5.000%, 09/01/06 500 505
Douglas & Elbert Counties,
School District #1,
Pre-refunded @ 101 (MBIA) (STAID)
6.400%, 12/15/04 (A) 1,000 1,094
Eagle, Garfield & Routt Counties,
School District #50-J,
Callable 12/01/04 @ 102 (FGIC) (STAID)
6.125%, 12/01/09 1,290 1,405
El Paso County School District #2,
Harrison (STAID)
7.050%, 12/01/04 1,000 1,115
El Paso County School District #3,
Widefield, Zero Coupon Bond (MBIA)
4.700%, 12/15/09 (B) 500 292
El Paso County School District #20,
Series A (STAID)
6.100%, 12/15/05 500 539
El Paso County School District #49,
Falcon, Series A (FSA) (STAID)
6.000%, 12/01/09 1,000 1,064
Elbert County School District C-1 Elizabeth,
Callable 12/01/09 @ 100 (STAID)
4.400%, 12/01/11 1,000 909
Fort Collins, Callable 12/01/02 @ 101
6.400%, 12/01/09 575 613
Garfield, Pitkin, & Eagle Counties,
School District #1 (MBIA)
6.000%, 12/15/04 1,000 1,069
Jefferson County School District #R-1,
Pre-refunded @ 101 (AMBAC) (STAID)
5.900%, 12/15/02 (A) 1,045 1,104
La Plata County School District #9-R,
Durango, Callable 11/01/02 @ 101
(FGIC) (STAID)
6.200%, 11/01/05 165 175
La Plata County School District #9-R,
Durango, Pre-refunded @ 101 (FGIC)
6.200%, 11/01/02 (A) 835 888
Larimer County School District #R-1,
Poudre (STAID)
5.400%, 12/15/04 750 779
5.500%, 12/15/07 500 523
17 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS SEPTEMBER 30, 1999
COLORADO INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
Larimer County School District #R-1,
Poudre, Pre-refunded @ 101 (MBIA)
6.150%, 12/15/02 (A) $1,000 $ 1,064
Larimer, Weld & Boulder Counties,
School District #R-2, Thompson,
Callable 12/15/04 @ 100 (STAID)
5.900%, 12/15/06 1,000 1,054
Metex Metropolitan District, Series A (MBIA)
5.000%, 12/01/03 500 512
South Suburban Park & Recreation District,
Zero Coupon Bond (MBIA)
6.000%, 12/15/01 (B) 1,000 910
Stonegate Village Metropolitan District,
Pre-refunded @ 100 (FGIC)
6.300%, 12/01/02 (A) 500 529
Summit County School District #R-1,
Pre-refunded @ 100
6.450%, 12/01/04 (A) 1,250 1,360
Thornton (FGIC)
5.600%, 12/01/02 1,000 1,039
Thornton, Callable 12/01/02 @ 101 (FGIC)
5.650%, 12/01/03 1,000 1,046
Weld County School District #6, Greeley,
Callable 12/01/07 @ 101 (STAID)
5.000%, 12/01/08 1,000 1,007
Westglenn Metropolitan District,
Callable 12/01/09 @ 100
6.000%, 12/01/14 1,220 1,198
----------
26,537
----------
REVENUE BONDS -- 32.5%
BUILDING -- 1.7%
Jefferson County, Metropolitan Y.M.C.A.
Project, Callable 08/01/04 @ 100
7.500%, 08/01/08 1,000 1,043
----------
EDUCATION -- 4.1%
Aurora Community College Project
(MLO) (CLE)
5.750%, 10/15/04 500 521
Colorado Springs, The Colorado College Project
4.750%, 06/01/07 500 498
4.850%, 06/01/08 280 279
Colorado State Board of Agriculture,
Fort Lewis College Project (FGIC)
6.000%, 10/01/02 250 262
University of Northern Colorado,
Auxiliary Facility System,
Callable 06/01/07 @ 100 (MBIA)
5.600%, 06/01/24 1,000 984
----------
2,544
----------
HEALTHCARE -- 10.4%
Colorado Springs Memorial Hospital,
Callable 12/15/05 @ 102 (MBIA)
6.000%, 12/15/15 500 512
Colorado State Health Facilities Authority,
Catholic Health Initiatives
Project, Series A
5.500%, 12/01/06 1,000 1,041
COLORADO INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
Colorado State Health Facilities Authority,
National Jewish Medical & Research
Center, Callable 01/01/08 @ 101
5.375%, 01/01/16 $1,000 $ 896
5.375%, 01/01/23 1,000 867
Colorado State Health Facilities Authority,
Sisters of Charity (MBIA)
5.500%, 12/01/07 1,000 1,037
Colorado State Health Facilities Authority,
Steamboat Springs Health Project
4.500%, 09/15/03 400 389
4.600%, 09/15/04 405 391
La Junta Hospital, Arkansas Valley
Medical Center Project
5.200%, 04/01/06 300 293
5.300%, 04/01/07 320 311
5.400%, 04/01/08 335 325
5.500%, 04/01/09 355 344
----------
6,406
----------
HOUSING -- 1.4%
Colorado State Housing Finance Authority,
Multifamily Housing, Series A (FHA)
5.125%, 10/01/03 430 433
Colorado State Housing Finance Authority,
Single Family Mortgages, Series B-1 (AMT)
5.875%, 06/01/11 445 450
----------
883
----------
INDUSTRIAL DEVELOPMENT -- 0.4%
Jefferson County Industrial
Development Authority,
May Department Stores
6.625%, 09/01/01 250 258
----------
POLLUTION CONTROL -- 1.7%
Moffat County Pollution Control (AMBAC)
5.500%, 11/01/05 1,000 1,046
----------
RECREATIONAL AUTHORITY -- 3.7%
Denver, Helen G. Bonfils Foundation,
Callable 12/01/07 @ 100
5.125%, 12/01/17 1,000 931
Metropolitan Football Stadium District,
Series A, Zero Coupon Bond (MBIA)
4.880%, 01/01/07 (B) 2,000 1,389
----------
2,320
----------
TRANSPORTATION -- 1.9%
Arapahoe County, Highway Improvement
Trust Fund, Pre-refunded @ 103
7.000%, 08/31/05 (A) 1,000 1,144
----------
UTILITIES -- 7.2%
Colorado Springs Utilities,
Callable 11/15/01 @ 102
6.625%, 11/15/04 1,000 1,064
6.500%, 11/15/15 1,495 1,582
Colorado State Water Resource & Power
Development Authority (AMBAC)
5.500%, 09/01/04 500 522
18 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
COLORADO INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
Colorado State Water Resource & Power
Development Authority,
Callable 09/01/02 @ 101 (FSA)
5.900%, 09/01/03 $ 250 $ 263
Westminster Water & Wastewater
Utility Enterprise,
Callable 10/01/04 @ 100 (AMBAC)
5.800%, 12/01/05 1,000 1,055
----------
4,486
----------
TOTAL REVENUE BONDS 20,130
----------
CERTIFICATES OF PARTICIPATION -- 10.5%
Adams County, Lease Purchase,
Callable 12/01/09 @ 100 (AMBAC)
5.200%, 12/01/12 825 815
Aurora, Callable 12/01/04 @ 101 (MLO)
6.000%, 12/01/06 1,000 1,015
Englewood Civic Center Project,
Callable 12/01/08 @ 100 (MBIA) (MLO)
4.900%, 06/01/13 585 544
Regional Transportation District,
Transit Vehicles Project, Series A
(AMBAC) (MLO)
4.200%, 06/01/09 1,300 1,203
Regional Transportation District,
Transit Vehicles Project, Series A,
Callable 06/01/09 @ 101 (AMBAC)
5.000%, 06/01/10 1,000 989
Westminster Recreation Facilities
(MBIA) (MLO)
4.450%, 12/01/08 945 900
Westminster Recreation Facilities,
Callable 09/01/09 @ 101 (MBIA)
5.200%, 09/01/10 1,000 1,005
----------
6,471
----------
TAX REVENUE -- 10.7%
Boulder County Sales & Use Tax (FGIC)
5.750%, 12/15/05 1,000 1,061
Denver City & County Excise Tax,
Series A (FSA)
5.250%, 09/01/09 1,000 1,019
Metropolitan Football Stadium District,
Series B, Zero Coupon Bond (MBIA)
4.970%, 01/01/06 (B) 1,500 1,100
Pueblo Urban Renewal Authority,
Callable 12/01/03 @ 101 (AMBAC)
5.800%, 12/01/09 840 877
Regional Transportation District
5.750%, 11/01/01 1,500 1,549
Westminster Sales & Use Tax, Series A,
Callable 12/01/07 @ 101 (FGIC)
5.250%, 12/01/11 500 502
Westminster Sales & Use Tax, Series B (FGIC)
6.250%, 12/01/05 500 543
----------
6,651
----------
TOTAL MUNICIPAL BONDS
(Cost $58,888) 59,789
----------
COLORADO INTERMEDIATE TAX FREE FUND
(CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- ---------------------------------------------------------------------
RELATED PARTY MONEY MARKET FUND -- 1.7%
First American Tax Free Obligations
Fund (C) 1,056,792 $ 1,057
----------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $1,057) 1,057
----------
TOTAL INVESTMENTS -- 98.2%
(Cost $59,945) 60,846
----------
OTHER ASSETS AND LIABILITIES, NET -- 1.8% 1,123
----------
NET ASSETS:
Portfolio Capital--Class A
($.0001 par value--2 billion authorized)
based on 458,708 outstanding shares 4,760
Portfolio Capital--Class Y
($.0001 par value--2 billion authorized)
based on 5,560,788 outstanding shares 56,368
Undistributed net investment income 9
Accumulated net realized loss on investments (69)
Net unrealized appreciation of investments 901
----------
TOTAL NET ASSETS -- 100.0% $ 61,969
----------
Net asset value and redemption price
per share--Class A $ 10.32
Maximum sales charge of 2.50% (D) 0.26
----------
Offering price per share--Class A $ 10.58
----------
Net asset value, offering price, and redemption
price per share--Class Y $ 10.29
----------
(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) 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.
(D) 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 Corporation
AMT--Alternative Minimum Tax
CLE--Connie Lee
FGIC--Financial Guaranty Insurance Corporation
FHA--Federal Housing Authority
FSA--Financial Security Assurance
MBIA--Municipal Bond Insurance Association
MLO--Municipal Lease Obligation
STAID--State Aid Withholding
The accompanying notes are an integral part of the financial statements.
19 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS SEPTEMBER 30, 1999
INTERMEDIATE TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
MUNICIPAL BONDS -- 98.5%
ALABAMA -- 1.5%
Alabama State Docks Department
(RB) (MBIA)
5.250%, 10/01/10 $3,000 $ 3,027
Jefferson County Sewer, Series A
(RB) (FGIC)
5.375%, 02/01/06 1,500 1,550
Montgomery, Baptist Health
Special Care (RB) (MBIA)
4.000%, 11/15/03 1,640 1,603
4.100%, 11/15/05 500 480
----------
6,660
----------
ALASKA -- 3.1%
Alaska State Housing Finance
Corporation (RB)
5.900%, 12/01/04 700 736
Alaska State Housing Finance
Corporation (RB) (MBIA)
4.950%, 12/01/02 745 750
5.350%, 06/01/06 745 754
Alaska State Housing Finance Corporation,
Callable 06/01/04 @ 102 (RB)
5.400%, 12/01/23 3,000 2,815
Alaska State Housing Finance Corporation,
Callable 12/01/05 @ 102 (RB) (MBIA)
5.400%, 12/01/08 2,000 2,009
Alaska State Industrial Development &
Export Authority,
Callable 04/01/03 @ 102 (RB)
5.950%, 04/01/06 895 918
Alaska State International Airports,
Series A (RB) (AMT) (AMBAC)
4.250%, 10/01/06 2,000 1,903
Anchorage (GO) (FGIC)
6.000%, 10/01/06 2,250 2,408
Anchorage, Electric Utility (RB) (MBIA)
5.500%, 12/01/02 700 724
Anchorage, Port & Terminal Facilities
(RB) (MBIA)
6.000%, 02/01/01 990 1,013
----------
14,030
----------
ARIZONA -- 4.8%
Arizona State Transportation Board,
Highway Project,
Pre-refunded @ 101 (RB)
6.900%, 07/01/00 (A) 300 310
Maricopa County School District #4,
Mesa (GO) (FSA)
5.250%, 07/01/04 4,000 4,120
Maricopa County School District #11,
Peoria, Series A,
Callable 07/01/07 @ 101
(GO) (AMBAC)
5.000%, 07/01/10 3,000 2,978
Maricopa County School District #69,
Paradise Valley (GO) (MBIA)
5.300%, 07/01/11 1,000 1,009
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
Maricopa County School District #80,
Chandler, Series D (GO) (AMBAC)
4.600%, 07/01/05 $4,000 $ 3,989
Maricopa County School District #97,
Deer Valley, Series D,
Callable 07/01/07 @ 100 (GO) (FGIC)
4.900%, 07/01/10 4,500 4,409
Phoenix, Callable 07/01/07 @ 102 (GO)
5.000%, 07/01/09 1,300 1,300
Phoenix, Series A (GO)
5.550%, 07/01/09 1,000 1,042
Pima County (GO)
6.000%, 07/01/02 800 835
Tempe Unified School District #213,
Series C (GO) (MBIA)
4.000%, 07/01/12 2,060 1,779
----------
21,771
----------
CALIFORNIA -- 2.7%
Azusa Redevelopment Agency,
Single Family Mortgages, Series A,
Escrowed To Maturity (RB) (FNMA)
6.400%, 10/01/02 1,000 1,065
Bakersfield Convention Center
Expansion Project,
Callable 04/01/07 @ 101
(COP) (MLO) (MBIA)
5.400%, 04/01/09 1,000 1,032
California Health Facilities Authority
(RB) (CMI)
7.250%, 10/01/99 500 500
Mountain View Los Altos School District,
Series B, Callable 05/01/07 @ 102 (GO)
6.500%, 05/01/17 3,000 3,180
Orange County Transportation Authority,
Callable 02/15/02 @ 102 (RB)
5.700%, 02/15/03 200 210
5.750%, 02/15/04 1,000 1,053
Rio Linda Unified School District,
Callable 08/01/08 @ 100 (GO) (FSA)
5.200%, 08/01/11 1,000 1,010
San Jose Airport,
Callable 03/01/03 @ 102
(RB) (MBIA)
6.100%, 03/01/06 1,000 1,069
Tri-City Hospital District,
Series B (RB) (MBIA)
5.750%, 02/15/03 2,870 3,010
----------
12,129
----------
COLORADO -- 2.4%
Boulder, Larimer, & Weld Counties
School District #R-1, Vrain Valley,
Callable 12/15/04 @ 100 (GO) (MBIA)
5.600%, 12/15/05 1,000 1,038
Colorado State Health Facilities Authority,
Zero Coupon Bond,
Escrowed to Maturity (RB)
5.500%, 07/15/20 (B) 10,000 2,759
20 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
Colorado State Housing Finance Authority,
Series A-2, Callable 05/01/06 @ 105 (RB)
7.150%, 11/01/14 $1,310 $ 1,421
Colorado State Housing Finance Authority,
Single Family Mortgages,
Callable 08/01/00 @ 101 (RB) (FHA/VA)
7.400%, 08/01/09 235 240
Greenwood Metropolitan District,
Arapahoe County,
Callable 12/01/02 @ 100
(RB) (FSA)
7.300%, 12/01/06 2,000 2,167
Greenwood South Metropolitan District,
Arapahoe County,
Callable 12/01/02 @ 100 (RB) (MBIA)
7.250%, 12/01/06 1,500 1,623
Jefferson County,
Callable 12/01/04 @ 100
(COP) (MLO) (MBIA)
6.650%, 12/01/08 500 540
University of Colorado,
Callable 10/15/99 @ 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 1,060
----------
10,873
----------
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 4,101
----------
DELAWARE -- 1.1%
Delaware State (GO)
6.250%, 04/01/02 1,000 1,047
Delaware State,
Callable 04/01/01 @ 102 (GO)
6.350%, 04/01/03 1,000 1,048
Delaware Transportation Authority,
Callable 07/01/00 @ 100 (RB)
7.500%, 07/01/02 1,000 1,010
New Castle County,
Callable 10/01/03 @ 102 (GO)
5.300%, 10/01/05 2,000 2,068
----------
5,173
----------
DISTRICT OF COLUMBIA -- 0.1%
District of Columbia,
Callable 06/01/00 @ 102 (GO) (MBIA)
6.300%, 06/01/01 425 438
District of Columbia, Series A,
Pre-refunded @ 102 (GO)
6.300%, 06/01/00 (A) 75 78
----------
516
----------
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
FLORIDA -- 2.0%
Clearwater Housing Authority, Affordable
Housing Acquisition Program (RB) (FSA)
4.950%, 06/01/07 $4,000 $ 3,987
Jacksonville Health Facilities Authority,
Charity Obligation Group, Series C (RB)
4.625%, 08/15/05 2,000 1,993
Lee County Industrial Development
Authority, Shell Point Village Health
Project, Series A (RB)
5.500%, 11/15/08 1,000 989
Leon County (RB) (AMBAC)
5.250%, 10/01/07 2,005 2,063
----------
9,032
----------
HAWAII -- 1.4%
Hawaii County, Series A,
Pre-refunded @ 101 (RB) (FGIC)
7.100%, 06/01/00 (A) 1,000 1,032
Hawaii State, Series BX (GO)
5.750%, 03/01/00 1,000 1,008
Hawaii State, Series CO (GO) (FGIC)
6.000%, 03/01/05 3,000 3,185
Honolulu, Waste Water Systems,
Zero Coupon Bond (RB) (FGIC)
4.950%, 07/01/14 (B) 2,500 1,077
----------
6,302
----------
IDAHO -- 1.3%
Ada & Canyon Counties,
Joint School District #2 (GO)
5.500%, 07/30/13 1,115 1,130
Ada & Canyon Counties, Joint School
District #2, Pre-refunded @ 101 (GO)
5.500%, 07/30/05 (A) 1,000 1,050
5.500%, 07/30/05 (A) 1,000 1,050
Boise State University Refunding &
Improvements, Callable 04/01/08 @ 101
(RB) (FSA)
5.000%, 04/01/12 1,225 1,190
Idaho State Health Facilities Authority,
Hospital Health Systems (RB) (MBIA)
5.000%, 12/01/09 1,555 1,543
----------
5,963
----------
ILLINOIS -- 10.0%
Chicago Water, Zero Coupon Bond
(RB) (FGIC)
6.780%, 11/01/08 (B) 5,150 3,207
7.120%, 11/01/09 (B) 6,450 3,787
7.560%, 11/01/10 (B) 3,980 2,193
Chicago, O' Hare Airport Project,
Series B (RB) (AMT)
5.200%, 04/01/11 1,000 930
Chicago, Public Commerce Building,
Series C (GO) (FGIC)
5.500%, 02/01/06 1,000 1,034
Chicago, Series A (GO) (FGIC)
5.250%, 01/01/11 3,975 3,981
21 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS SEPTEMBER 30, 1999
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
Chicago, Single Family Mortgages,
Series A, Callable 03/01/06 @ 103
(RB) (AMT) (GNMA/FNMA/FHLMC)
5.250%, 03/01/13 $ 270 $ 267
Cook County (RB) (MBIA)
7.250%, 11/01/07 2,000 2,302
De Kalb, Single Family Mortgages,
Series A (RB) (AMT) (GNMA)
7.000%, 12/01/01 305 311
Greenville Educational Facilities,
Greenville College Project (RB)
4.750%, 06/01/07 1,105 1,034
Illinois State (GO)
5.000%, 06/01/03 1,000 1,018
Illinois State Educational Facilities Authority,
Northwestern University,
Mandatory Put @ 100 (RB)
4.950%, 11/01/08 (C) 2,050 2,025
Illinois State Educational Facilities Authority,
The Art Institute of Chicago,
Mandatory Put @ 100 (RB)
4.700%, 03/01/06 (C) 4,500 4,436
Illinios State Health Facilities Authority,
Alexian Brothers Health System
(RB) (FSA)
5.000%, 01/01/06 2,000 2,009
Illinois State Sales Tax, Series S (RB)
5.000%, 06/15/09 2,500 2,483
5.100%, 06/15/10 2,000 1,992
Illinois State, Callable 06/01/09 @ 101
(GO) (FGIC)
5.375%, 06/01/10 2,000 2,032
Melrose Park Water,
Callable 07/01/08 @ 100 (RB) (MBIA)
4.700%, 07/01/09 1,725 1,654
Metropolitan Pier & Exposition Authority,
McCormick Place Expansion Project,
Series A, Callable 12/15/09 @ 101
(RB) (FGIC)
5.550%, 12/15/11 1,000 1,023
Metropolitan Pier & Exposition Authority,
McCormick Place Expansion Project,
Zero Coupon Bond (RB) (FGIC)
5.050%, 06/15/15 (B) 10,000 4,049
Will County Community School
District #161, Summit Hill,
Zero Coupon Bond (GO) (FGIC)
5.250%, 01/01/11 (B) 2,260 1,227
Winnebago County School District #122,
Harlem-Loves Park, Zero Coupon
Bond (GO) (FSA)
5.090%, 01/01/09 (B) 1,990 1,226
5.200%, 01/01/17 (B) 3,000 1,095
----------
45,315
----------
INDIANA -- 0.3%
Indiana State Housing Finance Authority,
Callable 07/01/05 @ 102 (RB)
6.150%, 07/01/17 1,285 1,308
----------
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
IOWA -- 0.8%
Salix Pollution Control, Interstate Power
Company, Mandatory Put @ 100 (RB)
4.200%, 01/01/04 (C) $3,700 $ 3,700
----------
KANSAS -- 1.3%
Kansas State Development Finance
Authority (RB) (MBIA)
5.000%, 11/15/01 2,270 2,307
Sedgwick County School District #267
(GO) (AMBAC)
5.250%, 11/01/12 1,045 1,042
Sedgwick & Shawnee Counties,
Single Family Mortgages,
Series A-2 (RB) (GNMA)
6.700%, 06/01/29 2,260 2,383
----------
5,732
----------
LOUISIANA -- 0.6%
Jefferson County, Mandatory Put @ 100
(GO) (FGIC)
6.150%, 09/01/03 (C) 2,500 2,632
----------
MAINE -- 0.2%
Maine State Housing Authority, Series A,
Callable 02/01/04 @ 102 (RB)
5.650%, 11/15/20 1,000 965
----------
MARYLAND -- 0.9%
Maryland State & Local Facilities Project,
Series Z, Callable 06/01/06 @ 100 (GO)
5.400%, 06/01/07 1,000 1,034
Montgomery County,
Callable 04/01/06 @ 102 (GO)
5.125%, 04/01/08 3,000 3,055
----------
4,089
----------
MASSACHUSETTS -- 2.8%
Massachusetts Bay Transportation
Authority (GO) (RB)
6.250%, 03/01/12 1,875 2,039
Massachusetts State, Series C (GO)
5.250%, 09/01/06 3,000 3,086
5.250%, 08/01/08 2,000 2,042
Massachusetts State Health & Educational
Facilities Authority, Partners
Healthcare System, Series A (RB) (MBIA)
5.100%, 07/01/10 3,000 2,975
Massachusetts State Housing Finance
Agency (RB)
5.350%, 12/01/02 495 501
6.300%, 10/01/13 1,000 1,038
Massachusetts State Water Pollution
Control Abatement Trust (RB)
5.000%, 02/01/02 1,000 1,017
----------
12,698
----------
22 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
MICHIGAN -- 3.5%
Dexter Community Schools,
Callable 05/01/08 @ 100 (GO) (FGIC)
4.700%, 05/01/09 $2,500 $ 2,432
Jackson County Hospital Finance Authority,
Series A (RB) (AMBAC)
5.000%, 06/01/09 1,000 980
Michigan State Building Authority,
Callable 10/01/06 @ 102 (RB) (AMBAC)
5.050%, 10/01/09 585 585
Michigan State Housing Development
Authority, Callable 07/15/04 @ 102
(RB) (FNMA)
5.125%, 07/15/08 1,980 1,982
Oakland University,
Callable 05/15/07 @ 100
(RB) (MBIA)
5.600%, 05/15/10 1,000 1,029
Walled Lake Consolidated School District,
Callable 05/01/07 @ 100 (GO) (MBIA)
5.300%, 05/01/08 2,000 2,039
Wayne Charter County Airport,
Callable 12/01/08 @ 101 (RB)
(AMT) (MBIA)
5.250%, 12/01/09 5,000 4,992
West Ottawa Public School District,
Callable 05/01/07 @ 100 (GO) (FGIC)
5.250%, 05/01/09 1,780 1,803
----------
15,842
----------
MINNESOTA -- 3.1%
Anoka County, Resource Recovery,
Northern States Power (RB)
4.350%, 12/01/04 2,200 2,182
Bloomington Port Authority, Mall of
America Project, Series A,
Callable 02/01/04 @ 100 (RB) (FSA)
5.450%, 02/01/09 965 978
Dakota County Housing & Redevelopment
Authority (RB) (MLO)
4.650%, 02/01/00 1,000 1,003
Minneapolis & St. Paul Housing &
Redevelopment Authority,
Pre-refunded @ 102 (RB) (MBIA)
7.400%, 08/15/00 (A) 600 630
Minneapolis & St. Paul, Metairports
Commission, Series B,
Callable 01/01/08 @ 101
(RB) (AMT) (AMBAC)
5.375%, 01/01/10 3,000 3,029
Minneapolis, Hennepin Avenue Project,
Series C (GO)
6.200%, 03/01/02 800 835
Northern Minnesota Municipal Power
Agency, Series A,
Pre-refunded @ 102 (RB) (AMBAC)
5.700%, 01/01/03 (A) 2,500 2,644
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
St. Paul Housing & Redevelopment Authority,
Callable 08/01/06 @ 102.5
(RB) (AMBAC)
6.450%, 02/01/08 $1,240 $ 1,353
6.450%, 08/01/08 1,275 1,397
----------
14,051
----------
MISSOURI -- 1.2%
Kansas City School District (RB) (MLO) (FGIC)
6.300%, 02/01/00 1,000 1,008
Kansas City School District,
Callable 02/01/01 @ 102
(RB) (MLO) (FGIC)
6.400%, 02/01/02 2,000 2,091
The 210 Highway Transportation
Development District, Series A
(RB) (MERC)
4.800%, 07/15/06 2,375 2,341
----------
5,440
----------
NEBRASKA -- 7.5%
Buffalo County Hospital Authority #1,
Escrowed To Maturity (RB)
6.375%, 11/01/03 120 125
Douglas County Hospital Authority #1
(RB) (AMBAC)
4.600%, 09/01/04 1,255 1,256
4.800%, 09/01/08 1,500 1,473
4.900%, 09/01/09 1,500 1,471
Douglas County Hospital Authority #2,
Pre-refunded @ 102 (RB)
7.250%, 11/01/01 (A) 5,000 5,390
Douglas County School District #17,
Millard, Series A,
Callable 05/16/00 @ 101 (GO) (MBIA)
5.050%, 05/15/01 750 754
Douglas County School District #17, Millard,
Series B (GO) (MBIA)
5.000%, 05/15/00 500 504
Lincoln Electric System, Series A (RB)
5.000%, 09/01/00 500 506
Lincoln Waterworks Revenue (RB)
4.900%, 08/15/03 1,000 1,018
Municipal Energy Agency of Nebraska,
Series A (RB) (AMBAC)
5.450%, 04/01/02 750 771
Municipal Energy Agency of Nebraska,
Series A, Callable 04/01/02 @ 102
(RB) (AMBAC)
5.600%, 04/01/03 750 779
Nebraska Educational Finance Authority,
Concordia University Project,
Callable 12/15/08 @ 100 (RB)
5.250%, 12/15/15 2,270 2,058
Nebraska Educational Finance Authority,
Creighton University Project,
Callable 01/01/06 @ 101 (RB) (AMBAC)
5.600%, 01/01/07 2,500 2,610
23 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS SEPTEMBER 30, 1999
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
Nebraska Investment Finance Authority,
Catholic Health Initiatives, Series A,
Callable 12/01/07 @ 101 (RB)
5.000%, 12/01/09 $3,000 $ 2,927
Nebraska Investment Finance Authority,
Nebraska Methodist (RB) (MBIA)
6.750%, 03/01/01 2,000 2,071
Nebraska Public Power District,
Electric Systems, Series A (RB)
5.500%, 01/01/01 500 509
Nebraska Public Power District,
Nuclear Facilities,
Callable 01/01/03 @ 102 (RB) (MBIA)
5.200%, 07/01/00 1,000 1,011
Nebraska Public Power District, Power
Supply Systems, Series A (RB) (MBIA)
6.000%, 01/01/04 1,385 1,466
Nebraska Public Power District,
Power Supply Systems, Series B,
Pre-refunded @ 100 (RB) (MBIA)
4.900%, 01/01/03 (A) 1,500 1,520
Omaha Northwest Library Facilities
Corporation, Callable 08/15/07 @ 102
(RB) (MLO)
5.250%, 08/15/12 2,475 2,418
Omaha, Pre-refunded @ 102 (GO)
5.900%, 09/01/01 (A) 500 525
Omaha Public Power District, Series B (RB)
5.000%, 02/01/03 1,000 1,018
Omaha Sewer Systems (RB)
5.200%, 01/15/02 1,000 1,020
Ravenna Industrial Development,
Cargill Project (RB)
5.000%, 09/01/00 810 817
----------
34,017
----------
NEVADA -- 0.5%
Clark County School District, Building &
Renovation, Series B,
Callable 06/15/07 @ 101 (GO) (FGIC)
5.750%, 06/15/08 1,000 1,053
Washoe County School District,
Callable 08/01/02 @ 101 (GO) (MBIA)
5.700%, 08/01/03 1,000 1,042
----------
2,095
----------
NEW JERSEY -- 2.0%
New Jersey State (GO)
5.000%, 07/15/01 2,000 2,031
5.900%, 08/01/02 1,000 1,044
New Jersey State Transportation Trust
Fund Authority, Series A (RB)
5.500%, 06/15/08 (D) 2,000 2,077
New Jersey State Transportation Trust
Fund Authority, Series B (RB) (MBIA)
5.000%, 06/15/04 2,830 2,885
New Jersey State Turnpike Authority,
Series A, Callable 01/01/01 @ 102
(RB) (AMBAC)
6.750%, 01/01/08 1,000 1,047
----------
9,084
----------
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
NEW MEXICO -- 0.1%
Farmington Utility Systems,
Escrowed to Maturity (RB)
10.000%, 01/01/02 $ 350 $ 375
----------
NEW YORK -- 3.2%
Hempstead Town Industrial Development
Agency, Callable 12/01/06 @ 102 (RB)
5.000%, 12/01/08 2,000 2,000
Middletown School District (GO) (FGIC)
5.000%, 11/01/05 3,000 3,063
Nassau County, General Improvements,
Series V (GO) (AMBAC)
5.150%, 03/01/04 1,400 1,432
New York City Transitional Finance Authority,
Series C, Callable 05/01/08 @ 101 (RB)
4.750%, 05/01/11 1,605 1,523
New York State Dormitory
Authority (RB) (FSA)
4.750%, 07/01/08 2,425 2,374
New York State Dormitory Authority,
Manhattan College Project,
Callable 07/01/02 @ 102 (RB)
6.100%, 07/01/04 1,000 1,053
New York State Environmental Facilities
Corporation, Pollution Control,
Callable 11/15/04 @102 (RB)
6.400%, 05/15/06 1,250 1,365
New York State Municipal Assistance
Corporation, Series I (RB)
6.250%, 07/01/05 1,500 1,617
----------
14,427
----------
NORTH DAKOTA -- 0.5%
Grand Forks, United Hospital Obligated
Group (RB) (MBIA)
6.000%, 12/01/00 1,000 1,023
North Dakota State Industrial Commission,
Lignite Program, Series A (RB)
5.750%, 11/15/05 1,000 1,029
North Dakota State Student Loan (RB)
6.100%, 07/01/01 25 26
North Dakota State Student Loan,
Callable 10/15/99 @ 102 (RB) (AMBAC)
6.900%, 07/01/01 5 5
----------
2,083
----------
OHIO -- 3.7%
Butler County Transportation Improvement
District, Series A (RB) (FSA)
5.500%, 04/01/08 3,000 3,116
Franklin County Health Care, Friendship
Village, Callable 08/15/08 @ 102 (RB)
5.250%, 08/15/18 2,000 1,722
Lorain County Hospital Revenue, Catholic
Healthcare Partners, Series B,
Callable 09/01/07 @ 102 (RB) (MBIA)
5.375%, 09/01/09 1,000 1,020
Mahoning County Hospital Facilities
Revenue, Series A (RB) (MBIA)
4.800%, 11/15/09 2,145 2,071
24 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
Ohio State Building Authority,
Administration Building Fund Project,
Callable 10/01/08 @ 101 (RB)
5.250%, 10/01/09 $3,000 $ 3,049
Ohio State Building Authority, Adult
Correctional Facilities Project
(RB) (MLO) (MBIA)
5.500%, 10/01/04 1,000 1,044
Ohio State Building Authority, Juvenile
Correctional Facilities Project
(RB) (MLO) (AMBAC)
5.900%, 10/01/03 1,000 1,055
Ohio State Infrastructure Improvement (RB)
5.500%, 08/01/07 1,400 1,462
Ohio State Water Development
Authority (RB) (AMBAC)
5.250%, 06/01/06 2,000 2,058
----------
16,597
----------
OKLAHOMA -- 1.5%
Oklahoma County Housing Finance Authority,
Zero Coupon Bond,
Pre-refunded @ 56.915 (RB)
5.740%, 03/01/06 (A)(B) 3,690 1,527
Oklahoma Housing Finance Agency,
Mandatory Put @ 100 (RB) (FNMA)
5.500%, 11/01/05 (C) 3,000 3,066
Tulsa Educational Facilities, Holland Hall
School Project, Series B,
Callable 12/01/08 @ 101 (RB)
4.600%, 12/01/09 1,195 1,107
Tulsa Metropolitan Utility Authority,
Callable 09/01/05 @ 102 (RB)
5.600%, 09/01/06 1,000 1,048
----------
6,748
----------
OREGON -- 2.5%
Lane County School District #19,
Springfield, Pre-refunded @ 101
(GO) (MBIA)
5.900%, 10/15/04 (A) 1,000 1,070
Polk, Marion & Benton Counties,
School District #13-J (GO) (FGIC)
5.500%, 12/01/04 1,015 1,064
Portland Community College District,
Series A, Pre-refunded @ 100 (GO)
6.000%, 07/01/02 (A) 500 522
Washington County Criminal Justice Facilities,
Pre-refunded @ 100 (GO)
5.625%, 12/01/04 (A) 900 946
Washington County Unified Sewer Agency,
Pre-refunded @ 100 (RB) (AMBAC)
6.125%, 10/01/04 (A) 5,000 5,359
Yamhill County School District #40
(GO) (FGIC)
5.375%, 06/01/04 1,000 1,038
5.375%, 06/01/05 1,350 1,403
----------
11,402
----------
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
PENNSYLVANIA -- 2.8%
Erie County Prison Authority,
Pre-refunded @ 100 (RB) (MLO) (MBIA)
6.600%, 11/01/01 (A) $1,000 $ 1,048
6.700%, 11/01/01 (A) 1,000 1,050
Governor Mifflin School District,
Pre-refunded @ 100 (GO) (AMBAC)
6.500%, 02/01/02 (A) 2,000 2,098
Northumberland County, Commonwealth
Lease, Pre-refunded @ 100
(RB) (MLO) (MBIA)
6.600%, 10/15/01 (A) 1,000 1,048
Pennsylvania State (GO) (AMBAC)
5.125%, 09/15/03 5,000 5,132
Seneca Valley School District, Series A,
Callable 07/01/08 @ 100 (GO) (FGIC)
4.650%, 07/01/09 2,500 2,411
----------
12,787
----------
PUERTO RICO -- 0.6%
Puerto Rico Commonwealth (GO) (MBIA)
6.000%, 07/01/14 1,605 1,711
Puerto Rico Electric Power Authority,
Series A (RB) (MBIA)
6.000%, 07/01/06 1,000 1,082
Puerto Rico Housing Finance Corporation,
Single Family Mortgages (RB) (AMT) (GNMA)
6.000%, 02/01/02 110 113
Puerto Rico Housing Finance Corporation,
Single Family Mortgages (RB) (GNMA)
5.800%, 10/15/00 10 10
----------
2,916
----------
RHODE ISLAND -- 1.4%
Rhode Island Depositors Economic
Protection Corporation (RB) (FSA)
6.250%, 08/01/03 1,000 1,061
Rhode Island State, Consolidated Capital
Development, Series B,
Pre-refunded @ 102 (GO)
6.125%, 05/15/00 (A) 5,200 5,379
----------
6,440
----------
SOUTH CAROLINA -- 0.9%
Piedmont Municipal Power Agency,
Electric Revenue (RB) (FGIC)
6.250%, 01/01/04 2,350 2,467
South Carolina State Public Service
Authority, Series A (RB) (MBIA)
5.500%, 01/01/10 1,665 1,708
----------
4,175
----------
SOUTH DAKOTA -- 0.1%
Sioux Falls (COP) (MLO)
6.450%, 08/01/01 500 520
----------
25 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS SEPTEMBER 30, 1999
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
TENNESSEE -- 1.5%
Chattanoga Health, Education & Housing
Facilities Authority, Catholic Health
Initiatives, Series A (RB)
5.500%, 12/01/07 $1,000 $ 1,036
Nashville & Davidson Counties Water &
Sewer (RB) (MBIA)
6.000%, 01/01/04 2,000 2,113
Shelby County Health, Educational &
Housing Facilities Board, Methodist
Healthcare, Callable 04/01/08 @ 101
(RB) (MBIA)
5.500%, 04/01/09 3,000 3,087
Shelby County Health, Educational &
Housing Facilities Board, St. Jude's
Children's Research (RB)
5.000%, 07/01/09 500 492
----------
6,728
----------
TEXAS -- 5.6%
Abilene Health Facilities Development,
Sears Methodist Retirement,
Series A (RB)
5.100%, 11/15/05 1,115 1,070
5.250%, 11/15/06 1,175 1,125
5.300%, 11/15/07 1,000 940
5.350%, 11/15/08 1,300 1,228
Austin Electric, Waterworks & Sewer,
Pre-refunded @ 100 (RB)
6.600%, 10/01/99 (A) 365 365
Dallas (GO)
6.500%, 02/15/03 3,000 3,193
Dallas County, Pre-refunded @ 100 (GO)
6.400%, 02/15/01 (A) 750 771
Galveston County Special Tax Revenue
(RB) (MBIA)
6.400%, 02/01/05 185 190
Galveston County Special Tax Revenue,
Escrowed to Maturity (RB) (MBIA)
6.400%, 02/01/05 315 341
Houston Housing Finance Corporation (RB)
8.000%, 06/01/14 2,000 2,047
Irving Independent School District, Series A,
Zero Coupon Bond (GO) (PSFG)
5.000%, 02/15/09 (B) 6,190 3,801
Katy Independent School District,
Zero Coupon Bond (GO) (PSFG)
4.730%, 08/15/09 (B) 1,805 1,080
Lubbock Independent School District,
Pre-refunded @ 100 (GO) (PSFG)
6.375%, 08/15/00 (A) 725 741
Texas A&M University,
Callable 05/15/09 @ 100 (RB)
5.100%, 05/15/10 2,000 1,993
Texas State Correctional Facilities,
Liberty & Johnson Counties Project,
Pre-refunded @ 100 (RB) (MBIA)
6.850%, 09/15/01 (A) 1,000 1,050
Texas State Public Finance Authority,
Series A (RB)
6.500%, 10/01/04 5,000 5,434
----------
25,369
----------
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
UTAH -- 1.5%
Intermountain Power Agency (RB) (FSA)
5.250%, 07/01/03 $1,000 $ 1,027
Intermountain Power Agency,
Callable 11/04/99 @ 101 (RB)
7.300%, 07/01/00 500 506
Nebo School District,
Callable 04/01/01 @ 100
(GO) (FGIC)
5.500%, 04/01/04 500 507
Salt Lake County Municipal Building
Authority, Series A (RB) (MLO)
6.000%, 10/01/01 475 490
6.000%, 10/01/03 525 552
Utah State Housing Finance Agency,
Single Family Mortgages (RB) (FHA) (VA)
6.350%, 01/01/02 75 77
5.650%, 07/01/06 470 479
5.950%, 07/01/08 2,050 2,079
Utah State Housing Finance Agency,
Single Family Mortgages,
Callable 07/01/05 @102 (RB) (FHA) (VA)
6.300%, 01/01/18 1,015 1,041
----------
6,758
----------
VIRGINIA -- 1.6%
Fairfax County, Public Improvements,
Callable 06/01/05 @ 102 (GO)
5.000%, 06/01/06 2,000 2,037
Riverside Regional Jail Authority,
Callable 07/01/05 @ 102 (RB) (MBIA)
5.700%, 07/01/08 2,000 2,095
Virginia State Housing Development
Authority, Series D (RB)
6.100%, 01/01/14 1,110 1,133
Virginia State Housing Development
Authority, Series H (RB)
6.200%, 07/01/04 1,000 1,031
Virginia State Peninsula Regional Jail
Authority (RB) (MBIA)
5.300%, 10/01/09 1,000 1,015
----------
7,311
----------
WASHINGTON -- 12.6%
Clark County Public Utility District #1,
Callable 01/01/01 @ 102 (RB) (FGIC)
6.100%, 01/01/02 750 778
Clark County School District #37,
Vancouver (GO) (FSA)
5.250%, 12/01/14 1,515 1,487
Clark County School District #37,
Vancouver, Callable 12/01/02 @ 100 (GO)
6.100%, 12/01/04 1,000 1,046
Conservation & Renewable Energy
Systems, Washington Conservation
Project (RB)
5.650%, 10/01/03 700 729
Grant County Public Utility District #2 (RB)
5.750%, 01/01/02 670 689
Island County School District #206,
South Widbey, Callable 12/01/04 @ 100
(GO) (AMBAC)
5.750%, 12/01/06 700 730
26 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
King County Public Hospital District #4 (RB)
5.400%, 06/01/00 $ 500 $ 505
5.800%, 12/01/03 910 940
King County School District #403, Renton,
Pre-refunded @ 101 (GO)
6.050%, 12/01/02 (A) 875 927
King County School District #408, Auburn (GO)
6.200%, 12/01/02 515 542
King County School District #415, Kent (GO)
5.750%, 12/01/01 950 980
King County School District #415, Kent,
Pre-refunded @ 100 (GO) (AMBAC)
6.450%, 06/01/04 (A) 920 994
King County, Series A,
Pre-refunded @ 100 (GO)
6.900%, 12/01/00 (A) 500 517
King County, Series B,
Callable 12/01/07 @ 102 (GO)
5.850%, 12/01/13 3,000 3,092
Kitsap County School District #401,
Central Kitsap, Pre-refunded @ 101 (GO)
6.625%, 12/01/02 (A) 750 806
Kitsap County School District #402,
South Kitsap, Continuously
Callable @ 100 (GO)
7.400%, 12/01/99 115 115
Pierce County School District #320,
Sumner (GO)
6.000%, 12/01/06 1,000 1,053
Pierce County School District #401,
Peninsula, Series A (GO)
5.950%, 12/01/01 640 662
Pierce County School District #403, Bethel,
Callable 12/01/01 @ 100 (GO)
6.200%, 12/01/02 1,285 1,330
Pierce County School District #403, Bethel,
Callable 12/01/02 @ 100 (GO)
6.350%, 12/01/04 500 526
Pierce County Sewer Improvements (RB)
5.000%, 02/01/02 500 501
Port Seattle Passenger Facility Charge,
Series B (RB) (AMT) (AMBAC)
5.000%, 12/01/07 3,000 2,984
Port Tacoma, Series A (GO)
6.300%, 06/01/01 790 816
Snohomish County Housing Authority,
Callable 04/01/06 @ 100 (RB)
6.300%, 04/01/16 1,035 1,065
Snohomish County Public Utilities
District #1, Callable 05/01/00 @ 100 (GO)
5.850%, 11/01/17 1,000 1,000
Snohomish County Public Utilities
District #1, Series A (GO)
6.800%, 01/01/05 2,000 2,102
Snohomish County Public Utilities
District #1, Series B,
Pre-refunded @ 102 (GO)
6.700%, 01/01/01 (A) 1,000 1,050
Snohomish County School District #2,
Everett, Callable 12/01/03 @ 102
(GO) (MBIA)
6.000%, 12/01/06 850 907
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
Snohomish County School District #2,
Everett, Pre-refunded @ 102
(GO) (MBIA)
6.000%, 12/01/03 (A) $ 950 $ 1,022
Snohomish County School District #2,
Everett, Series A,
Callable 06/01/01 @ 100 (GO)
6.700%, 06/01/02 1,200 1,242
Snohomish County School District #6,
Mukilteo (GO)
6.250%, 12/01/01 900 937
Snohomish County School District #6,
Mukilteo, Pre-refunded @ 100 (GO)
6.800%, 06/01/01 (A) 900 938
Snohomish County Solid Waste,
Pre-refunded @ 102 (GO) (MBIA)
6.800%, 12/01/01 (A) 650 697
South Columbia Basin (GO)
5.800%, 12/01/01 500 516
Spokane County Regional Solid Waste
Management, Callable 12/01/02 @ 102
(RB) (AMBAC)
6.400%, 12/01/03 800 852
Spokane County School District #81,
Spokane (GO)
5.900%, 12/01/02 1,000 1,047
Spokane County School District #356,
Central Valley, Zero Coupon Bond
(GO) (FGIC)
5.030%, 12/01/14 (B) 8,690 3,629
Spokane County Sewer,
Callable 06/01/02 @ 100 (RB)
6.150%, 06/01/05 1,470 1,529
Tacoma Electric System,
Callable 01/01/02 @ 102
(RB) (AMBAC)
6.000%, 01/01/06 1,400 1,468
Tacoma, Series A,
Callable 07/01/02 @ 100 (GO)
5.900%, 07/01/03 600 621
Tacoma Utility, Pre-refunded @ 101
(RB) (AMBAC)
6.800%, 12/01/99 (A) 465 472
Tacoma Utility, Pre-refunded @ 101
(RB) (MBIA)
6.200%, 12/01/01 (A) 575 604
Thurston County School District #111,
Olympia, Pre-refunded @ 100 (GO)
6.700%, 12/01/02 (A) 1,000 1,069
Washington Public Power Supply System,
Nuclear Project #2,
Pre-refunded @ 102 (RB)
7.500%, 01/01/01 (A) 3,000 3,179
Washington Public Power Supply System,
Nuclear Project #2, Series A
(RB) (AMBAC)
5.700%, 07/01/11 1,000 1,025
Washington Public Power Supply System,
Nuclear Project #3, Series B (RB)
5.250%, 07/01/03 1,090 1,115
27 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS SEPTEMBER 30, 1999
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000)/SHARES VALUE (000)
- ---------------------------------------------------------------------
Washington State (GO)
6.200%, 09/01/01 $1,000 $ 1,037
5.300%, 10/01/01 1,000 1,022
Washington State,
Callable 04/01/01 @ 102 (COP) (MLO)
6.800%, 04/01/05 705 741
Washington State, Hearthstone Project,
Callable 01/01/05 @ 102 (RB)
6.000%, 01/01/10 810 849
Washington State, Series C (GO)
5.500%, 07/01/14 2,275 2,291
Washington State, Single Family
Mortgages (RB) (GNMA/FNMA)
6.700%, 07/01/02 170 174
----------
56,949
----------
WEST VIRGINIA -- 0.4%
West Virginia State (GO) (FGIC)
4.400%, 06/01/05 2,000 1,975
----------
WISCONSIN -- 1.8%
Milwaukee County,
Callable 09/01/02 @ 100 (GO)
5.550%, 09/01/03 1,700 1,751
Milwaukee County, Series A,
Callable 09/01/02 @ 100 (GO)
5.875%, 09/01/07 500 518
Mount Pleasant, Callable 10/01/00 @ 100 (GO)
6.300%, 10/01/03 735 751
Wisconsin State Health & Education
Facilities Authority, Aurora Health Care,
Series A, Callable 02/15/09 @ 101 (RB)
5.500%, 02/15/20 1,500 1,343
Wisconsin State Health & Education
Facilities Authority, Monroe Clinic (RB)
4.450%, 02/15/06 925 866
4.700%, 02/15/09 1,060 964
Wisconsin State Housing & Economic
Development Authority, Series A (GO)
5.000%, 11/01/01 1,585 1,592
Wisconsin State, Pre-refunded @ 101 (GO)
6.000%, 05/01/00 (A) 500 511
----------
8,296
----------
WYOMING -- 0.2%
Sweetwater County, Pacific Power & Light
Project, Pre-refunded @ 100 (RB)
6.500%, 12/01/01 (A) 700 703
----------
TOTAL MUNICIPAL BONDS
(Cost $446,259) 446,077
----------
RELATED PARTY MONEY MARKET FUND -- 0.9%
First American Tax Free Obligations
Fund (E) 4,273,799 4,274
----------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $4,274) 4,274
----------
TOTAL INVESTMENTS -- 99.4%
(Cost $450,533) 450,351
----------
OTHER ASSETS AND LIABILITIES, NET -- 0.6% 2,826
----------
INTERMEDIATE TAX FREE FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- ---------------------------------------------------------------------
NET ASSETS:
Portfolio Capital--Class A
($.0001 par value--2 billion authorized)
based on 1,025,425 outstanding shares $ 11,151
Portfolio Capital--Class Y
($.0001 par value--2 billion authorized)
based on 42,408,435 outstanding shares 443,104
Undistributed net investment income 91
Accumulated net realized loss on investments (987)
Net unrealized depreciation of investments (182)
----------
TOTAL NET ASSETS -- 100.0% $ 453,177
----------
Net asset value and redemption price
per share--Class A $ 10.45
Maximum sales charge of 2.50% (F) 0.27
----------
Offering price per share--Class A $ 10.72
----------
Net asset value, offering price, and redemption
price per share--Class Y $ 10.43
----------
(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) Mandatory Put Security--the mandatory put date is shown as the maturity date
on the Statement of Net Assets.
(D) At September 30, 1999, the cost of securities purchased on a when issued
basis was: New Jersey State Transportation Trust Fund Authority, $2,069,620.
(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 offer price is calculated by dividing the net asset value by 1 minus the
maximum sales charge of 2.50%.
AMBAC--American Municipal Bond Assurance Corporation
AMT--Alternative Minimum Tax
CMI--California Mortgage Insurance
COP--Certificates of Participation
FGIC--Financial Guaranty Insurance Company
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
MERC--Mercantile Bank
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.
28 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
MINNESOTA INTERMEDIATE TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
MUNICIPAL BONDS -- 99.5%
REVENUE BONDS -- 45.8%
AUTHORITY -- 0.5%
Stearns County Housing & Redevelopment
Authority (FSA) (MLO)
4.950%, 02/01/09 $1,540 $ 1,523
----------
BUILDING -- 1.9%
Olmsted County Housing & Redevelopment
Authority, Pre-refunded @ 100 (MLO)
7.000% 02/01/01 (A) 1,025 1,063
Washington County Housing &
Redevelopment Authority,
Jail Facility (MLO)
5.000%, 02/01/03 2,755 2,803
Washington County Housing &
Redevelopment Authority, Jail Facility,
Callable 02/01/03 @ 100 (MBIA) (MLO)
5.400%, 02/01/08 1,580 1,601
----------
5,467
----------
EDUCATION -- 1.9%
Minnesota State Higher Educational
Facilities Authority, Augsburg College
4.500%, 10/01/06 505 484
4.850%, 10/01/09 520 493
Minnesota State Higher Educational
Facilities Authority, Augsburg College,
Callable 10/01/09 @ 100
5.000%, 10/01/11 500 469
5.000%, 10/01/12 500 463
Minnesota State Higher Educational
Facilities Authority, St. Benedict College,
Callable 03/01/07 @ 100
4.875%, 03/01/08 1,000 963
5.100%, 03/01/11 2,885 2,733
----------
5,605
----------
HEALTHCARE -- 12.7%
Austin Housing & Redevelopment Authority,
Gerard Project Health Care Facilities,
Callable 09/01/09 @ 102
6.625%, 09/01/19 1,540 1,509
Cuyuna Range Hospital District, Series A,
Callable 06/01/07 @ 102
5.500%, 06/01/10 435 410
5.650%, 06/01/12 940 878
Duluth Economic Development Authority,
Health Care Facility, Escrowed to
Maturity (AMBAC)
6.100%, 11/01/04 250 268
Duluth Economic Development Authority,
Health Care Facility,
Pre-refunded @ 102 (AMBAC)
6.100%, 11/01/02 (A) 650 695
Hastings Health Care Facility,
Callable 09/15/08 @ 100 (ACA)
5.000%, 09/15/13 500 453
Minneapolis & St. Paul Housing &
Redevelopment Authority, Health
One Obligated Group,
Pre-refunded @ 102 (MBIA)
7.300%, 08/15/00 (A) 1,000 1,049
Minneapolis & St. Paul Housing &
Redevelopment Authority, Healthspan,
Series A, Callable 11/15/03 @ 102
(AMBAC)
5.000%, 11/15/07 2,000 2,011
5.000%, 11/15/13 2,000 1,895
MINNESOTA INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
Minneapolis Health Care Facilities Authority,
Fairview Hospital & Healthcare,
Callable 11/15/03 @ 102 (MBIA)
5.100%, 11/15/05 $1,000 $ 1,022
Minnesota State Agricultural & Economic
Development Board, Benedictine
Health, Series A (MBIA)
5.000%, 02/15/10 3,815 3,781
Minnesota State Agricultural & Economic
Development Board, Benedictine Health,
Series A, Callable 02/15/10 @ 101 (MBIA)
5.250%, 02/15/11 1,000 1,004
Minnesota State Agricultural & Economic
Development Board, Fairview Hospital
Project, Series A,
Callable 11/15/07 @ 102 (MBIA)
5.400%, 11/15/08 1,000 1,024
5.500%, 11/15/17 1,500 1,465
5.750%, 11/15/26 1,000 986
New Hope Housing & Health Care
Facilities, Masonic Home North Ridge
5.000%, 03/01/04 330 322
5.100%, 03/01/05 550 535
5.200%, 03/01/06 645 625
5.300%, 03/01/07 685 661
New Hope Housing & Health Care Facilities,
Masonic Home North Ridge,
Callable 03/01/09 @ 102
5.500%, 03/01/10 500 476
Plymouth Health Facilities,
Callable 06/01/04 @ 102 (CGIC) (FSA)
6.200%, 06/01/11 1,360 1,454
Robbinsdale, North Memorial Medical
Center, Series A (AMBAC)
5.100%, 05/15/03 1,000 1,021
Robbinsdale, North Memorial Medical
Center, Series B (AMBAC)
5.000%, 05/15/02 1,250 1,271
5.100%, 05/15/03 1,000 1,021
Rochester, St. Mary's Hospital,
Escrowed to Maturity
5.750%, 10/01/07 2,460 2,549
St. Cloud Hospital Facilities,
Series A (AMBAC)
5.500%, 07/01/06 1,000 1,044
St. Louis Park Health Care Facilities,
Callable 07/01/03 @ 102 (AMBAC)
4.600%, 07/01/05 6,000 5,931
St. Paul Housing & Redevelopment
Authority, Health Care Facility,
Regions Hospital Project
5.000%, 05/15/06 1,000 975
5.000%, 05/15/08 1,195 1,144
----------
37,479
----------
HOUSING -- 8.2%
Coon Rapids Multifamily Housing,
Woodland North Apartments,
Callable 12/01/03 @ 100 (FHA)
5.625%, 12/01/09 415 420
Coon Rapids Single Family Housing,
Callable 09/01/04 @ 102
5.900%, 09/01/06 570 577
29 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS SEPTEMBER 30, 1999
MINNESOTA INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
Dakota County Housing & Redevelopment
Authority, Single Family Mortgages,
Callable 04/01/04 @ 102 (AMT) (FNMA)
6.250%, 10/01/04 $ 655 $ 667
Dakota County Housing & Redevelopment
Authority, Single Family Mortgages,
Callable 04/01/05 @ 102
(AMT) (FNMA) (GNMA)
6.000%, 10/01/14 595 593
Dakota County Housing & Redevelopment
Authority, Single Family Mortgages,
Callable 10/01/07 @ 101.5
(AMT) (GNMA)
5.125%, 10/01/20 1,353 1,319
Dakota County Housing & Redevelopment
Authority, South St. Paul,
Callable 09/01/00 @ 101
(FHA/GNMA/VA)
7.250%, 03/01/06 265 267
Dakota, Washington & Stearns Counties
Housing & Redevelopment Authority,
Single Family Mortgages,
Callable 03/01/04 @ 102
(AMT) (FNMA)
6.000%, 09/01/04 240 244
6.500%, 09/01/10 335 344
Minneapolis & St. Paul Housing Finance
Board, Single Family Mortgages,
Series A, Callable 06/01/00 @ 101
(AMT) (FHA) (GNMA) (VA)
7.875%, 12/01/12 185 187
Minneapolis & St. Paul Housing Finance
Board, Single Family Mortgages,
Series A, Continuously Callable @ 100
7.700%, 08/01/00 85 86
Minneapolis Mortgage Revenue, Zero
Coupon Bond,
Callable 10/01/05 @ 100
7.100%, 10/01/12 (B) 2,950 1,274
Minnesota State Housing Finance Agency,
Rental Housing, Series D (MBIA)
5.050%, 08/01/03 810 815
5.150%, 08/01/04 790 797
Minnesota State Housing Finance Agency,
Rental Housing, Series D,
Callable 02/01/05 @ 102 (MBIA)
5.450%, 08/01/07 2,450 2,487
Minnesota State Housing Finance Agency,
Single Family Mortgages, Series C,
Callable 01/01/01 @ 102 (FHA) (VA)
6.600%, 07/01/02 375 388
Minnesota State Housing Finance Agency,
Single Family Mortgages,
Series D (AMBAC)
4.500%, 07/01/01 1,815 1,816
Minnesota State Housing Finance Agency,
Single Family Mortgages, Series D,
Callable 01/01/04 @ 102 (AMBAC)
4.800%, 07/01/04 3,085 3,070
Moorhead Economic Development
Authority, Eventide Senior Housing,
Series B, Callable 06/01/04 @ 102
5.750%, 06/01/16 1,360 1,266
Puerto Rico Housing Finance Agency,
Single Family Mortgages,
Series B (GNMA)
6.800%, 10/15/99 60 60
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 (FNMA)
5.100%, 09/01/07 $ 925 $ 925
St. Louis Park Housing & Redevelopment
Authority, Single Family Mortgages,
Callable 04/20/03 @ 100 (GNMA)
6.500%, 10/20/03 165 170
St. Paul Housing & Redevelopment
Authority, Downtown & Seventh Place
Project, Escrowed to Maturity,
Callable 09/01/03 @ 101 (AMBAC)
5.200%, 09/01/04 4,000 4,109
St. Paul Housing & Redevelopment
Authority, Downtown & Seventh Place
Project, Escrowed to Maturity,
Callable 09/01/04 @ 100 (AMBAC)
5.350%, 09/01/07 1,500 1,534
Vadnais Heights, Single Family Mortgages
5.500%, 11/01/04 530 539
6.000%, 11/01/09 305 308
----------
24,262
----------
INDUSTRIAL DEVELOPMENT -- 0.7%
Pipestone Industrial Development,
Cargill Project
5.000%, 09/01/00 1,890 1,909
St. Paul Port Authority, Industrial
Development, Escrowed To Maturity
8.250%, 11/01/99 115 115
----------
2,024
----------
MISCELLANEOUS -- 0.7%
St. Paul Housing and Redevelopment Authority,
St. Paul Heart and Lung Center,
Mandatory Put @ 100 (NBM)
4.700%, 12/01/00 (C) 2,075 2,087
----------
POLLUTION CONTROL -- 2.3%
Bass Brook Power & Light, Pollution Control
6.875%, 12/01/02 2,000 2,024
Minnesota State Public Facilities Authority,
Water Pollution Control, Series A,
Callable 03/01/08 @ 100
4.500%, 03/01/10 5,000 4,752
----------
6,776
----------
TRANSPORTATION -- 2.0%
Minneapolis & St. Paul Metairports
Commission (AMT) (AMBAC)
5.500%, 01/01/07 2,140 2,211
Minneapolis & St. Paul Metairports
Commission, Callable 01/01/08 @ 101
(AMT) (AMBAC)
5.500%, 01/01/09 2,500 2,564
Minneapolis & St. Paul Metairports
Commission, Series B,
Callable 01/01/09 @ 101 (AMT) (FGIC)
5.625%, 01/01/14 1,000 1,001
----------
5,776
----------
30 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
MINNESOTA INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
UTILITIES -- 14.9%
Anoka County Resource Recovery,
Northern States Power
4.400%, 12/01/05 $2,300 $ 2,266
Minnesota State Public Facilities Authority,
Drinking Water, Series B,
Callable 03/01/09 @ 100
5.125%, 03/01/19 2,000 1,866
Minnesota State Public Facilities Authority,
Water Pollution Control, Series B,
Callable 03/01/01 @ 102
6.350%, 03/01/03 500 523
Northern Minnesota Municipal Power
Agency, Electric Systems (FSA)
5.500%, 01/01/07 3,000 3,118
Northern Minnesota Municipal Power
Agency, Electric Systems,
Series A (AMBAC)
5.500%, 01/01/03 2,500 2,582
Northern Minnesota Municipal Power
Agency, Electric Systems, Series A,
Pre-refunded @ 102 (AMBAC)
5.600%, 01/01/03 (A) 1,900 2,004
5.900%, 01/01/03 (A) 1,800 1,914
Southern Minnesota Municipal Power
Agency, Series A (AMBAC)
5.000%, 01/01/11 1,270 1,247
Southern Minnesota Municipal Power
Agency, Series A (FGIC)
5.300%, 01/01/01 1,275 1,294
Southern Minnesota Municipal Power
Agency, Series A,
Callable 01/01/03 @ 102 (FGIC)
5.000%, 01/01/06 2,500 2,531
Southern Minnesota Municipal Power Agency,
Series A, Zero Coupon Bond (MBIA)
6.180%, 01/01/20 (B) 3,500 1,074
5.960%, 01/01/21 (B) 5,000 1,438
Southern Minnesota Municipal Power
Agency, Series B (MBIA)
4.850%, 01/01/07 1,875 1,877
Southern Minnesota Municipal Power
Agency, Series B, Escrowed To Maturity
5.300%, 01/01/01 1,000 1,014
St. Paul Sewer,
Callable 06/01/03 @ 100 (AMBAC)
5.350%, 12/01/04 3,000 3,085
5.450%, 12/01/05 5,000 5,137
Western Minnesota Municipal Power Agency,
Callable 01/01/03 @ 100 (AMBAC)
6.500%, 01/01/04 1,980 2,069
Western Minnesota Municipal Power Agency,
Callable 01/01/06 @ 102 (AMBAC)
5.500%, 01/01/11 5,000 5,099
Western Minnesota Municipal Power
Agency, Series A,
Callable 01/01/06 @ 102 (AMBAC)
5.500%, 01/01/13 2,000 2,014
Western Minnesota Municipal Power
Agency, Series B (AMBAC)
6.000%, 01/01/03 1,500 1,572
----------
43,724
----------
TOTAL REVENUE BONDS 134,723
----------
MINNESOTA INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
GENERAL OBLIGATIONS -- 42.2%
Anoka County
5.550%, 02/01/05 $2,000 $ 2,040
Anoka County Capital Improvements,
Series B
4.550%, 01/01/11 1,960 1,831
Anoka-Hennepin School District #11,
Callable 02/01/03 @ 100 (FGIC)
4.875%, 02/01/07 3,300 3,305
Becker Tax Increment, Series D,
Callable 08/01/04 @ 100 (AMT) (MBIA)
6.000%, 08/01/07 3,955 4,045
Bloomington Independent School
District #271 (MSDCEP)
5.250%, 02/01/09 1,500 1,528
Bloomington Independent School
District #271, Callable 02/01/10 @ 100
(MSDCEP)
5.250%, 02/01/11 1,000 1,005
Bloomington Port Authority,
Pre-refunded @ 100
6.000%, 03/01/00 (A) 1,800 1,817
Burnsville Independent School
District #191 (MSDCEP)
5.000%, 02/01/08 1,355 1,361
Burnsville Independent School District #191,
Callable 02/01/08 @ 100 (MSDCEP)
5.000%, 02/01/09 1,225 1,224
Chaska Independent School District #112,
Series A (MSDCEP)
4.600%, 02/01/07 1,835 1,806
4.800%, 02/01/10 2,220 2,144
Dakota County Capital Improvements,
Series C
4.750%, 02/01/09 (D) 1,000 978
4.850%, 02/01/10 (D) 1,000 975
Dakota County Housing & Redevelopment
Authority (MLO)
4.950%, 02/01/02 1,000 1,015
Eden Prairie Water & Sewer, Series A,
Zero Coupon Bond
4.700%, 12/01/06 (B) 2,090 1,472
Faribault Independent School
District #656 (FSA)
4.625%, 06/01/07 1,525 1,507
Forest Lake Independent School
District #831, Callable 02/01/08 @ 100
5.000%, 02/01/09 1,500 1,500
Fridley School District #14,
Callable 02/01/05 @ 100 (FSA)
5.350%, 02/01/26 5,000 4,717
Hastings Independent School District #200,
Series A, Callable 02/01/08 @ 100
5.000%, 02/01/10 1,625 1,613
Hastings Independent School District #200,
Series A, Callable 02/01/08 @ 100
(MSDCEP)
5.000%, 02/01/11 1,095 1,078
Hopkins Independent School
District #270, Series A,
Callable 02/01/03 @ 100 (MBIA)
4.800%, 02/01/05 1,000 1,005
Lakeville Independent School District #194,
Callable 02/01/09 @ 100
5.000%, 02/01/16 2,500 2,328
31 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS SEPTEMBER 30, 1999
MINNESOTA INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
Lakeville Independent School District #194,
Series A, Callable 02/01/08 @ 100
(MSDCEP)
5.125%, 02/01/22 $6,000 $ 5,603
Mankato Independent School District #77,
Series A, Callable 02/01/04 @ 100 (FSA)
5.100%, 02/01/07 1,000 1,010
Minneapolis, Series B,
Callable 09/01/05 @ 100
5.050%, 03/01/06 6,000 6,110
Minneapolis, Series B
5.000%, 12/01/06 1,955 1,991
Minneapolis, Series C,
Pre-refunded @ 100
6.250%, 03/01/02 (A) 1,000 1,045
6.350%, 03/01/02 (A) 1,200 1,257
Minneapolis, Series C,
Callable 04/01/02 @ 102
6.150%, 10/01/05 2,400 2,541
Minneapolis & St. Paul Metairports
Commission, Series 8,
Callable 01/01/02 @ 100 (AMT)
6.100%, 01/01/03 1,500 1,555
6.350%, 01/01/04 2,500 2,597
Minneapolis & St. Paul Metairports
Commission, Series 10,
Callable 01/01/03 @ 100
5.000%, 01/01/05 1,000 1,012
Minnesota State, Callable 08/01/07 @ 100
4.800%, 08/01/11 2,710 2,620
4.850%, 08/01/12 4,920 4,724
Minnesota State, Pre-refunded @ 100
5.750%, 08/01/02 (A) 5,000 5,196
North Branch Independent School
District #138, Callable 02/01/05 @ 100
(FGIC)
5.400%, 02/01/09 1,000 1,023
Olmsted County Resource Recovery,
Series A, Callable 02/01/02 @ 100
5.800%, 02/01/04 1,850 1,900
Osseo Independent School District #279,
Callable 02/01/03 @ 100 (FGIC)
5.400%, 02/01/05 2,525 2,585
Princeton Independent School District #477,
Callable 02/01/07 @ 100 (FSA)
5.125%, 02/01/24 2,000 1,818
Red Wing Independent School District #256,
Callable 02/01/08 @ 100 (MSDCEP)
5.000%, 02/01/10 2,015 1,997
Red Wing Independent School District #256,
Series A, Callable 02/01/03 @ 100
5.250%, 02/01/05 1,010 1,029
Richfield Independent School
District #280 (FGIC)
4.550%, 02/01/03 5,930 5,930
Rochester Independent School
District #535, Series A,
Callable 02/01/00 @ 100
5.600%, 02/01/03 1,500 1,509
Rosemount Independent School
District #196, Series A,
Callable 06/01/04 @ 100
5.625%, 06/01/07 1,400 1,450
MINNESOTA INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
Rosemount Independent School
District #196, Series A,
Callable 06/01/08 @ 100 (MSDCEP)
4.375%, 06/01/10 $1,930 $ 1,796
Savage, Series A (FGIC)
5.200%, 02/01/05 1,000 1,027
Savage, Series A,
Callable 02/01/06 @ 100 (FGIC)
5.350%, 02/01/07 1,000 1,029
5.500%, 02/01/08 1,000 1,031
St. Cloud Law Enforcement Center,
Callable 02/01/01 @ 100 (MLO)
5.750%, 02/01/02 1,000 1,019
St. Cloud, Series A
6.000%, 08/01/02 1,000 1,038
St. Cloud, Series B,
Callable 08/01/08 @ 100 (FGIC)
5.000%, 08/01/09 1,780 1,781
St. Louis Park Independent School
District #283, Callable 02/01/01 @ 100
5.900%, 02/01/04 1,000 1,021
St. Paul, Callable 02/01/01 @ 100
5.250%, 02/01/03 1,500 1,517
St. Paul Independent School District #625,
Callable 02/01/04 @ 100
5.800%, 02/01/07 1,000 1,038
St. Paul Independent School District #625,
Series C (MLO)
5.850%, 02/01/07 1,000 1,043
Stillwater Independent School
District #834,
Callable 02/01/02 @ 100 (FGIC)
5.200%, 02/01/03 2,500 2,544
Stillwater Independent School District #834,
Callable 02/01/09 @100 (MSDCEP)
4.750%, 02/01/11 2,140 2,048
Virgin Islands Special Tax,
Pre-refunded @102
7.750%, 10/01/01 (A) 330 352
Washington County, Raymie Johnson
Apartments, Series C (FGIC)
6.000%, 01/01/10 1,340 1,400
Washington County Housing &
Redevelopment Authority, Jail Facility,
Escrowed To Maturity (MLO)
6.500%, 02/01/01 1,000 1,031
Washington County Housing &
Redevelopment Authority, Jail Facility,
Pre-refunded @ 100 (MLO)
6.800%, 02/01/02 (A) 1,500 1,584
West St. Paul Independent School
District #197, Zero Coupon Bond (MBIA)
5.900%, 02/01/05 (B) 2,000 1,558
Willmar Independent School District #347,
Series A (MSDCEP)
4.950%, 02/01/06 1,000 1,012
Willmar Independent School District #347,
Series A, Callable 02/01/06 @ 100
(MSDCEP)
5.150%, 02/01/09 1,610 1,623
Willmar Independent School District #347,
Series C, Pre-refunded @ 100 (AMBAC)
6.150%, 02/01/02 (A) 1,000 1,038
----------
124,326
----------
32 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
MINNESOTA INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
TAX REVENUE -- 7.7%
Bloomington Port Authority, Mall of
America Project, Series A (FSA)
5.000%, 02/01/01 $1,090 $ 1,103
5.000%, 02/01/02 1,585 1,611
4.800%, 02/01/08 1,000 991
4.900%, 02/01/09 1,000 990
Bloomington Port Authority, Mall of
America Project, Series A,
Callable 02/01/04 @ 100 (FSA)
5.450%, 02/01/09 2,405 2,437
Minneapolis Community Development
Agency (MBIA)
7.000%, 03/01/01 2,000 2,078
Minneapolis Community Development
Agency, Zero Coupon Bond (MBIA)
6.240%, 03/01/02 (B) 5,000 4,497
St. Paul Housing & Redevelopment Authority,
Civic Center Project
4.700%, 11/01/02 1,420 1,433
St. Paul Housing & Redevelopment Authority,
Tax Increment Revenue (AMBAC)
6.250%, 08/01/05 1,110 1,191
St. Paul Housing & Redevelopment Authority,
Tax Increment Revenue,
Callable 08/01/06 @ 102.5 (AMBAC)
6.400%, 02/01/07 1,195 1,297
6.400%, 08/01/07 1,205 1,314
6.500%, 02/01/09 1,315 1,437
St. Paul Port Authority, Energy Park,
Tax Increment (FSA)
5.000%, 02/01/08 2,100 2,103
----------
22,482
----------
CERTIFICATES OF PARTICIPATION -- 3.8%
Hennepin County Lease Revenue (MLO)
4.650%, 11/15/08 1,275 1,246
Hennepin County Lease Revenue,
Callable 11/15/08 @ 100 (MLO)
5.375%, 11/15/09 2,280 2,335
Minneapolis Special School District #1,
Series A (MLO)
4.375%, 02/01/07 1,000 968
Minneapolis Special School District #1,
Series A, Callable 02/01/06 @ 100
(MBIA) (MLO)
5.900%, 02/01/11 2,150 2,249
Minneapolis Special School District #1,
Series B, Callable 02/01/03 @ 100
(AMBAC) (MLO)
5.400%, 02/01/04 2,000 2,055
5.500%, 02/01/05 2,000 2,053
St. Paul Science Museum,
Escrowed to Maturity
7.500%, 12/15/01 390 406
----------
11,312
----------
TOTAL MUNICIPAL BONDS
(Cost $291,173) 292,843
----------
MINNESOTA INTERMEDIATE TAX FREE FUND
(CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- ---------------------------------------------------------------------
MONEY MARKET FUND -- 0.2%
Federated Minnesota Municipal
Cash Trust 544,990 $ 545
----------
TOTAL MONEY MARKET FUND
(Cost $545) 545
----------
TOTAL INVESTMENTS -- 99.7%
(Cost $291,718) 293,388
----------
OTHER ASSETS AND LIABILITIES, NET -- 0.3% 1,017
----------
NET ASSETS:
Portfolio Capital--Class A
($.0001 par value--2 billion authorized)
based on 1,494,600 outstanding shares 14,981
Portfolio Capital--Class Y
($.0001 par value--2 billion authorized)
based on 28,675,167 outstanding shares 277,396
Undistributed net investment income 51
Accumulated net realized gain on investments 307
Net unrealized appreciation of investments 1,670
----------
TOTAL NET ASSETS -- 100.0% $ 294,405
----------
Net asset value and redemption price
per share--Class A $ 9.79
Maximum sales charge of 2.50% (E) 0.25
----------
Offering price per share--Class A $ 10.04
----------
Net asset value, offering price, and redemption
price per share--Class Y $ 9.76
----------
(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) Mandatory Put Security--the mandatory put date is shown as the maturity date
on the Statement of Net Assets.
(D) At September 30, 1999, the cost of securities purchased on a when issued
basis was: Dakota County Capital Improvements $2,038,820.
(E) 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 Corporation
AMT--Alternative Minimum Tax
CGIC--Capital Guaranty Insurance Company
FGIC--Financial Guaranty Insurance Corporation
FHA--Federal Housing Authority
FNMA--Federal National Mortgage Association
FSA--Financial Security Assurance
GNMA--Government National Mortgage Association
MBIA--Municipal Bond Insurance Association
MLO--Municipal Lease Obligation
MSDCEP--Minnesota School District Credit Enhancement Program
NBM--Norwest Bank Minnesota
VA--Veterans Administration
The accompanying notes are an integral part of the financial statements.
33 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS SEPTEMBER 30, 1999
MINNESOTA TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
MUNICIPAL BONDS -- 95.7%
REVENUE BONDS -- 55.7%
BUILDING -- 0.8%
Hastings Housing & Redevelopment
Authority, Cross-over
Refunded 02/01/03 @ 100 (MLO)
6.500%, 02/01/14 $1,000 $ 1,063
----------
ECONOMIC DEVELOPMENT -- 0.6%
Minnesota Agricultural & Economic
Development Board,
Callable 12/01/08 @ 102 (AMBAC)
5.000%, 12/01/15 900 825
----------
EDUCATION -- 10.5%
Maplewood, Mounds Park Academy,
Callable 09/01/03 @ 102
7.000%, 09/01/23 1,500 1,550
Minneapolis Gateway Project,
Callable 12/01/07 @ 100
5.250%, 12/01/17 1,000 953
Minnesota State Higher Education
Facilities Authority, Augsburg College,
Series 4-F1, Callable 05/01/06 @ 102
6.250%, 05/01/23 1,500 1,531
Minnesota State Higher Education Facilities
Authority, Carleton College,
Callable 05/01/06 @ 100
5.750%, 11/01/12 1,050 1,065
Minnesota State Higher Education Facilities
Authority, Carleton College,
Callable 11/01/07 @ 100
5.250%, 11/01/11 500 502
5.400%, 11/01/15 1,500 1,476
Minnesota State Higher Education Facilities
Authority, College of St. Benedict,
Callable 03/01/04 @100
6.200%, 03/01/14 245 253
6.375%, 03/01/20 140 145
Minnesota State Higher Education Facilities
Authority, College of St. Benedict,
Pre-refunded @100
6.200%, 03/01/04 (A) 655 697
6.375%, 03/01/04 (A) 360 385
Minnesota State Higher Education Facilities
Authority, St. John's University Project,
Callable 10/01/07 @ 100
5.350%, 10/01/17 1,000 944
Minnesota State Higher Education Facilities
Authority, University of St. Thomas,
Series 4-A1, Callable 10/01/06 @ 100
5.625%, 10/01/16 1,500 1,503
5.625%, 10/01/21 500 494
Minnesota State Higher Education Facilities
Authority, University of St. Thomas,
Series 4-M, Callable 04/01/07 @ 100
5.375%, 04/01/12 500 494
5.350%, 04/01/17 500 477
Minnesota State Higher Education Facilities
Authority, Vermillion Community College,
Callable 01/01/04 @ 102
5.750%, 01/01/13 790 802
----------
13,271
----------
MINNESOTA TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
HEALTHCARE -- 23.1%
Brooklyn Center Health Care Facility,
Callable 12/01/03 @ 102
7.600%, 12/01/18 $ 900 $ 938
Chisago Health Facilities Authority,
Callable 07/01/05 @ 102
7.300%, 07/01/25 400 417
Coon Rapids Nursing Home Facilities
Authority, North Cities Health Project
6.000%, 05/01/03 640 650
Cuyana Range, Hospital District, Series A,
Callable 06/01/07 @ 102
6.000%, 06/01/29 2,000 1,806
Duluth Economic Development Authority,
Health Care Facilities,
Pre-refunded @ 102 (AMBAC)
6.300%, 11/01/02 (A) 145 156
Fairmont Senior Housing Mortgage,
Callable 07/01/02 @ 102
8.500%, 07/01/15 900 951
Fergus Falls Health Care Facilities Authority,
Series A, Callable 11/01/04 @ 102
7.000%, 11/01/19 1,000 1,018
Glencoe Health Care Facilities,
Pre-refunded @ 100
8.500%, 12/01/00 (A) 575 604
Glencoe Hospital Board,
Callable 08/01/04 @ 102
6.750%, 04/01/16 1,100 1,101
Golden Valley, Covenant Retirement
Communities, Series A,
Callable 12/01/09 @ 101
5.500%, 12/01/29 1,750 1,562
Litchfield Health Care Facilities,
Pre-refunded @ 102
8.750%, 08/01/01 (A) 500 548
Little Canada Presbyterian Homes,
Callable 07/01/00 @ 102
7.000%, 07/01/07 700 707
Minneapolis & St. Paul Housing &
Redevelopment Authority, Series A (FSA)
5.600%, 08/15/12 250 253
Minneapolis Nursing Home Revenue,
Pre-refunded @ 100
8.000%, 05/01/01 (A) 250 264
Minnesota State Agricultural & Economic
Development Board, Benedictine Health,
Series A, Callable 11/15/07 @ 102 (MBIA)
5.250%, 02/15/15 2,000 1,938
Minnesota State Agricultural & Economic
Development Board, Fairview Hospital
Project, Callable 11/15/07 @ 102 (MBIA)
5.500%, 11/15/11 500 505
Minnesota State Agricultural & Economic
Development Board, Fairview Hospital
Project, Series A,
Callable 11/15/07 @ 102 (MBIA)
5.500%, 11/15/17 1,000 976
Monticello, Big Lake Community Hospital,
Callable 12/01/09 @ 100
5.750%, 12/01/19 1,000 920
New Prague, Queen of Peace Hospital
Project, Callable 12/01/06 @ 100
6.500%, 06/01/12 500 500
34 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
MINNESOTA TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
Northern Itasca Hospital District Health
Facilities, Pre-refunded @ 100
7.500%, 01/01/00 (A) $ 50 $ 50
7.750%, 01/01/00 (A) 70 71
7.750%, 01/01/00 (A) 75 76
7.800%, 01/01/00 (A) 85 86
7.900%, 01/01/00 (A) 90 91
8.000%, 01/01/00 (A) 100 101
8.000%, 01/01/00 (A) 105 106
8.000%, 01/01/00 (A) 255 258
Northfield Hospital, Series C,
Callable 12/01/01 @ 100
7.000%, 12/01/05 185 189
7.000%, 12/01/06 370 378
7.000%, 12/01/07 405 413
7.000%, 12/01/08 730 745
Olmstead County, Hiawatha Homes Project,
Callable 07/01/03 @ 102
6.500%, 07/01/16 205 205
Plymouth, Mission Farms Nursing Home
Project, Callable 08/01/04 @ 102
7.500%, 08/01/14 1,000 1,050
7.500%, 08/01/24 100 105
Red Wing Health Care Facilities Authority,
Callable 09/01/03 @ 102
6.400%, 09/01/12 1,000 1,027
Rochester Health Care Facilities Authority,
Mayo Foundation, Series A,
Callable 05/15/08 @ 101
5.500%, 11/15/27 3,000 2,892
Roseau Area Hospital District,
Callable 10/01/01 @ 100
7.200%, 10/01/11 230 235
7.200%, 10/01/12 250 255
7.200%, 10/01/13 250 255
Springfield Health Care, St. John Lutheran
Project, Callable 05/01/00 @ 103
8.500%, 11/01/19 250 258
St. Anthony Housing & Redevelopment
Authority, Callable 05/20/06 @ 102
(GNMA) (FHA)
6.250%, 11/20/25 1,500 1,537
St. Paul Housing & Redevelopment
Authority, Callable 05/15/09 @ 100
5.250%, 05/15/18 1,000 898
White Bear Lake Care Center,
Callable 11/01/03 @ 102
8.250%, 11/01/12 1,000 1,075
Worthington, Series A,
Callable 12/01/02 @ 100
6.500%, 12/01/10 380 383
6.500%, 12/01/11 410 413
6.500%, 12/01/12 440 443
----------
29,409
----------
HOUSING -- 14.3%
Coon Rapids Multifamily Housing, Browns
Meadow, Callable 02/01/02 @ 102 (AMT)
6.750%, 08/01/23 680 702
Coon Rapids Multifamily Housing, Margaret
Place, Callable 11/01/07 @ 102
6.250%, 05/01/18 500 492
Coon Rapids Multifamily Housing, Woodland
North Apartments,
Callable 12/01/03 @ 100 (FHA)
5.625%, 12/01/09 855 866
MINNESOTA TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
Dakota County Housing &
Redevelopment Authority,
Callable 09/01/00 @ 101 (GNMA)
8.100%, 09/01/12 $ 245 $ 250
Hopkins Elderly Housing, Series A (GNMA)
5.600%, 11/20/17 500 496
Hopkins, Multifamily Housing, Renaissance
Project, Callable 04/01/07 @102
6.250%, 04/01/15 500 515
Minneapolis Multifamily Housing, Churchill
Project, Callable 10/01/11 @ 102 (FHA)
7.050%, 10/01/22 750 789
Minneapolis Multifamily Housing, Seward
Towers Project,
Callable 12/20/00 @ 102 (GNMA)
7.375%, 12/20/30 1,370 1,415
Minneapolis Multifamily Housing, Trinity
Housing Project,
Callable 02/01/01 @ 102
7.875%, 02/01/06 185 191
8.250%, 02/01/18 2,625 2,679
Minnesota State Housing Development
Service, Callable 02/01/02 @ 102
7.050%, 08/01/27 500 524
Minnetonka Housing, Cedar Hills East
Project, Callable 12/01/99 @ 103
7.500%, 12/01/27 800 825
Moorhead Economic Development Authority,
Series B Callable 06/01/04 @ 102
6.000%, 06/01/29 1,400 1,291
Roseville Housing Facilities Authority,
Pre-refunded @ 102
7.125%, 10/01/03 (A) 2,000 2,218
St. Cloud Housing & Redevelopment
Authority, Pre-refunded @ 102
7.500%, 12/01/00 (A) 500 529
St. Louis Park Multifamily Housing (GNMA)
5.250%, 11/01/20 500 462
St. Louis Park Multifamily Housing,
Callable 12/01/05 @ 102 (FHA)
6.250%, 12/01/28 500 515
St. Paul Housing & Redevelopment Authority,
Como Lake Project, Series B (FHA)
7.500%, 03/01/26 (B) 1,500 1,470
Washington County, Housing &
Redevelopment Authority, Briar Pond
Project, Callable 08/20/09 @100
5.600%, 08/20/34 1,000 947
White Bear Lake, Lake Square Housing,
Series A, Callable 02/01/07 @ 102 (FHA)
6.000%, 08/01/20 1,020 1,040
----------
18,216
----------
INDUSTRIAL DEVELOPMENT -- 1.6%
Little Canada Commercial Development,
Callable 04/01/03 @ 100 (MLO)
7.100%, 04/01/13 1,650 1,677
Shakopee Commercial Development
6.500%, 12/01/99 15 15
6.750%, 06/01/00 10 10
6.750%, 12/01/00 15 15
7.000%, 06/01/01 15 15
7.000%, 12/01/01 15 15
35 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS SEPTEMBER 30, 1999
MINNESOTA TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
Shakopee Commercial Development,
Callable 12/01/00 @ 101
7.250%, 06/01/02 $ 15 $ 15
7.250%, 12/01/02 15 15
7.350%, 06/01/03 15 15
7.350%, 12/01/03 15 15
7.350%, 06/01/04 15 15
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%, 12/01/07 25 26
7.500%, 06/01/08 20 21
7.500%, 12/01/08 25 26
----------
2,016
----------
POLLUTION CONTROL -- 0.7%
Minnesota State Public Facilities Authority,
Water Pollution Control,
Callable 03/01/08 @ 100
4.750%, 03/01/18 1,000 885
----------
RECREATIONAL AUTHORITY -- 1.0%
Moorhead, Series A, Pre-refunded @ 100
7.750%, 12/01/01 (A) 1,165 1,249
----------
SCHOOL DISTRICT -- 0.4%
South Washington County Independent
School District #833,
Callable 12/01/06 @ 100 (MLO)
5.250%, 12/01/14 500 485
----------
UTILITIES -- 2.7%
Southern Minnesota Municipal Power
Agency, Callable 01/01/03 @ 102 (MBIA)
5.000%, 01/01/12 1,000 972
Southern Minnesota Municipal Power
Agency, Pre-refunded @ 100 (MBIA)
5.750%, 07/01/16 (A) 850 858
Western Minnesota Municipal Power
Agency, Callable 01/01/06 @ 102
(AMBAC)
5.500%, 01/01/12 1,000 1,013
Western Minnesota Municipal Power Agency,
Escrowed to Maturity, Callable
01/01/00 @ 100 (MBIA)
9.750%, 01/01/16 410 589
----------
3,432
----------
TOTAL REVENUE BONDS 70,851
----------
GENERAL OBLIGATIONS -- 36.7%
Austin Housing & Redevelopment Authority,
Callable 01/01/06 @ 102
7.250%, 01/01/26 500 522
Big Lake Independent School District,
Callable 02/01/07 @ 100 (MBIA)
5.600%, 02/01/15 1,000 1,005
Burnsville Independent School District #191,
Series A, Callable 02/01/06 @ 100
4.875%, 02/01/13 1,450 1,365
MINNESOTA TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
Chaska Independent School District #112,
Series B, Cross-over
refunded 02/01/06 @ 100
5.875%, 02/01/11 $1,965 $ 2,074
5.875%, 02/01/12 2,200 2,322
6.000%, 02/01/16 5,525 5,877
Columbia Heights Independent
School District #13,
Callable 02/01/07 @ 100
5.250%, 02/01/15 1,000 972
Eden Prairie Independent School
District #272, Callable 02/01/08 @ 100
5.100%, 02/01/12 1,150 1,136
Hawley Independent School District #150,
Series A, Cross-over
refunded 02/01/06 @ 100 (FSA)
5.750%, 02/01/14 1,500 1,571
Lakeville Independent School District #194,
Callable 02/01/09 @ 100
5.000%, 02/01/17 1,000 922
Metropolitan Council,
Callable 06/01/05 @ 100
5.600%, 06/01/15 1,000 1,008
Minneapolis Parking Revenue,
Callable 09/01/05 @ 100
5.200%, 03/01/13 400 394
Minneapolis Sports Arena,
Callable 04/01/08 @ 100
5.100%, 04/01/13 500 489
5.100%, 10/01/13 250 245
5.125%, 10/01/20 1,000 927
Minnesota State Public Improvements,
Callable 11/01/06 @ 100
5.000%, 11/01/07 1,790 1,810
5.000%, 11/01/08 1,500 1,514
5.250%, 11/01/13 1,500 1,490
North Beach Independent School
District #138, Cross-over
refunded 02/01/05 @ 100 (FGIC)
5.600%, 02/01/13 1,500 1,550
North St. Paul Independent School
District #622, Callable 05/01/06 @ 100
5.850%, 05/01/17 500 507
Osseo Independent School District #279,
Series A, Callable 02/01/04 @ 100
8.971%, 02/01/14 (C) 3,195 3,231
Rochester Independent School
District #535, Callable 02/01/06 @ 100
5.250%, 02/01/14 1,000 980
Shakopee Independent School District #7,
Callable 02/01/08 @ 100
4.625%, 02/01/15 1,920 1,710
4.625%, 02/01/16 2,250 1,980
South Washington County Independent
School District #833,
Callable 06/01/05 @ 100 (MLO)
5.850%, 06/01/15 500 508
St. Cloud, Series A, Cross-over
refunded 02/01/02 @ 100
8.902%, 08/01/13 (C) 5,200 5,434
St. Paul Independent School District #625,
Callable 02/01/05 @ 100 (MLO)
5.250%, 02/01/15 1,000 965
36 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
MINNESOTA TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000)/SHARES VALUE (000)
- ---------------------------------------------------------------------
Wayzata Independent School
District #284, Cross-over
refunded 02/01/05 @ 100 (FSA)
5.950%, 02/01/13 $1,000 $ 1,052
6.000%, 02/01/16 2,000 2,115
Wayzata Independent School District #284,
Series A, Callable 02/01/07 @ 100
5.500%, 02/01/17 1,000 990
----------
46,665
----------
CERTIFICATES OF PARTICIPATION -- 3.0%
Hennepin County, Series A,
Pre-refunded @ 100 (MLO)
6.650%, 11/15/01 (A) 1,000 1,050
6.750%, 11/15/01 (A) 575 605
6.750%, 11/15/01 (A) 300 315
6.800%, 11/15/01 (A) 1,750 1,843
----------
3,813
----------
TAX REVENUE -- 0.3%
Duluth Economic Development Authority
8.000%, 08/01/08 325 367
----------
TOTAL MUNICIPAL BONDS
(Cost $119,567) 121,696
----------
CLOSED-END MUTUAL FUNDS -- 1.5%
Voyaguer Minnesota Municipal Income II 99,700 1,365
Voyaguer Minnesota Municipal Income III 43,500 549
----------
TOTAL CLOSED-END MUTUAL FUNDS
(Cost $2,070) 1,914
----------
MONEY MARKET FUND -- 0.7%
Federated Minnesota Municipal
Cash Trust 937,025 937
----------
TOTAL MONEY MARKET FUND
(Cost $937) 937
----------
TOTAL INVESTMENTS -- 97.9%
(Cost $122,574) 124,547
----------
OTHER ASSETS AND LIABILITIES, NET -- 2.1% 2,607
----------
NET ASSETS:
Portfolio Capital--Class A
($.0001 par value--2 billion authorized)
based on 10,100,465 outstanding shares 105,153
Portfolio Capital--Class C
($.0001 par value--2 billion authorized)
based on 157,306 outstanding shares 1,750
Portfolio Capital--Class Y
($.0001 par value--2 billion authorized)
based on 1,623,335 outstanding shares 18,123
Undistributed net investment income 171
Accumulated net realized loss on investments (16)
Net unrealized appreciation of investments 1,973
----------
TOTAL NET ASSETS -- 100.0% $ 127,154
----------
MINNESOTA TAX FREE FUND (CONCLUDED)
DESCRIPTION VALUE
- ---------------------------------------------------------------------
Net asset value and redemption price
per share--Class A $ 10.70
Maximum sales charge of 2.50% (D) 0.27
----------
Offering price per share--Class A $ 10.97
----------
Net asset value per share--Class C (E) $ 10.69
Maximum sales charge of 1.00% (F) 0.11
----------
Offering price per share--Class C $ 10.80
----------
Net asset value, offering price and redemption
price per share--Class Y $ 10.69
----------
(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) Security currently in partial default and is only 93.5% guaranteed. The
effective interest rate is 7.013%.
(C) 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.
(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 Corporation
AMT--Alternative Minimum Tax
FGIC--Financial Guaranty Insurance Corporation
FHA--Federal Housing Authority
FSA--Financial Security Assurance
GNMA--Government National Mortgage Association
MBIA--Municipal Bond Insurance Association
MLO--Municipal Lease Obligation
The accompanying notes are an integral part of the financial statements.
37 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS SEPTEMBER 30, 1999
OREGON INTERMEDIATE TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
MUNICIPAL BONDS -- 98.4%
GENERAL OBLIGATIONS -- 52.4%
Bear Creek Valley Sanitation Authority,
Callable 04/01/00 @ 100
7.200%, 10/01/00 $ 215 $ 218
Beaverton Limited Tax
5.750%, 04/01/01 860 880
Beaverton Limited Tax, Series B,
Callable 04/01/02 @ 100
5.000%, 04/01/03 900 913
Chemeketa Community College,
Pre-refunded @ 100 (FGIC)
5.650%, 06/01/06 (A) 1,000 1,052
Clackamas & Washington Counties Joint
School District #3 (FGIC)
5.750%, 06/01/09 1,000 1,060
Clackamas & Washington Counties
Joint School District #3,
Callable 10/01/02 @ 101
5.650%, 10/01/05 235 244
Clackamas & Washington Counties Joint
School District #3, Pre-refunded @ 100
5.600%, 08/01/02 (A) 1,000 1,034
Clackamas County School District #7,
Lake Oswego
5.200%, 06/15/04 600 619
Clackamas County School District #12,
North Clackamas,
Callable 06/01/03 @ 101
4.650%, 06/01/05 1,025 1,026
Clackamas County School District #12,
North Clackamas,
Callable 06/01/09 @ 100 (FGIC)
5.250%, 06/01/12 2,000 2,003
Clackamas County Service District #1
6.600%, 10/01/99 370 370
Columbia River Peoples Utility District,
Callable 06/01/06 @ 100 (AMBAC)
4.375%, 06/01/07 1,245 1,208
Deschutes & Jefferson Counties School
District #2, Redmond,
Callable 06/01/03 @ 100 (MBIA)
5.400%, 06/01/05 1,000 1,027
Deschutes County,
Callable 12/01/06 @ 100 (MBIA)
5.250%, 12/01/09 1,000 1,018
Eugene Public Safety Facilities,
Callable 06/01/06 @ 100 (FGIC)
5.700%, 06/01/16 1,295 1,309
Grants Pass, Series A, Continuously
Callable @ 100 (AMBAC)
5.850%, 06/01/00 1,000 1,003
Jackson County School District #549-C (FSA)
6.000%, 06/01/05 1,125 1,203
Josephine County School District #7 (FGIC)
5.750%, 06/01/06 1,525 1,617
Lane County Community College
5.000%, 06/01/01 1,000 1,014
Lane County Metropolitan Waste &
Water Service
5.100%, 09/01/00 660 668
Lincoln City, Callable 01/01/00 @ 100
(AMBAC)
5.750%, 07/01/01 500 502
OREGON INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
Lincoln City, Series A,
Callable 02/01/00 @ 100 (AMBAC)
5.000%, 02/01/03 $ 305 $ 306
Lincoln County School District (FGIC)
5.500%, 06/15/04 2,095 2,187
6.000%, 06/15/06 1,055 1,134
Marion & Polk Counties School
District #24-J, Salem,
Pre-refunded @ 100
5.600%, 10/01/02 (A) 635 658
5.700%, 10/01/02 (A) 660 686
5.800%, 10/01/02 (A) 715 745
Marion County School District #7-J,
Silverton, Callable 06/01/04 @ 101 (FSA)
5.600%, 06/01/06 860 900
Metropolitan Open Spaces Program,
Series A, Callable 09/01/03 @ 102
5.000%, 09/01/04 1,275 1,303
Metropolitan Open Spaces Program,
Series C, Callable 09/01/03 @ 102
5.250%, 09/01/13 1,000 990
Metropolitan Service District, Oregon
Convention Center Project,
Callable 01/01/00 @ 102
6.000%, 07/01/02 1,300 1,333
Metropolitan Service District, Oregon
Convention Center Project, Series A,
Callable 01/01/00 @ 102
6.250%, 01/01/13 500 513
Metropolitan, Washington Park Zoo, Series A
5.000%, 01/15/02 1,040 1,057
5.000%, 01/15/03 1,095 1,115
6.000%, 01/15/05 1,215 1,293
Metropolitan, Washington Park Zoo,
Series A, Callable 01/15/07 @ 100
5.250%, 01/15/10 1,000 1,010
Morrow County School District #1 (MBIA)
5.500%, 06/01/04 795 830
5.500%, 06/01/05 835 873
Multnomah County School District #1,
Portland
4.250%, 06/01/03 1,000 995
Multnomah County School District #3,
Park Rose, Callable 12/01/05 @ 100
(FGIC)
5.600%, 12/01/07 780 813
Multnomah County School District #4,
Gresham
5.500%, 01/01/02 910 934
Multnomah County School District #4,
Gresham, Pre-refunded @ 100
5.800%, 01/01/02 (A) 1,400 1,445
Multnomah County School District #7,
Reynolds (AMBAC)
5.875%, 06/01/02 1,000 1,040
5.500%, 06/01/06 1,000 1,045
Multnomah County School District #40
5.250%, 06/01/04 1,000 1,031
Multnomah County, Callable 04/01/09 @ 100
4.300%, 10/01/11 1,500 1,360
4.500%, 10/01/13 2,000 1,797
Oregon State
6.000%, 08/01/02 2,100 2,200
6.000%, 02/01/03 1,000 1,051
38 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
OREGON INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
Oregon State Alternative Energy, Private Act,
Callable 07/01/04 @ 100
5.300%, 07/01/05 $ 900 $ 926
Oregon State Board of Higher Education,
Series B, Callable 10/15/02 @ 100
6.250%, 10/15/12 1,375 1,437
Oregon State Pollution Control, Series A,
Callable 11/01/07 @ 100
4.875%, 11/01/11 455 443
Oregon State Pollution Control, Series C,
Callable 06/01/03 @ 100
5.625%, 06/01/13 370 373
Polk, Marion & Benton Counties School
District #13-J (FGIC)
5.500%, 12/01/03 955 996
Polk, Marion & Benton Counties
School District #13-J,
Callable 12/01/04 @ 101 (FGIC)
5.500%, 12/01/05 570 598
Port Portland, Series A
4.500%, 03/01/06 1,000 988
Portland Community College District,
Callable 07/01/07 @ 101 (AMBAC)
5.500%, 07/01/10 2,850 2,941
Portland Community College District,
Series A, Pre-refunded @ 100
6.000%, 07/01/02 (A) 1,500 1,565
Portland Emergency Facilities, Series A,
Callable 06/01/09 @ 100
5.000%, 06/01/12 1,060 1,040
Portland, Series C, Callable 12/01/99 @ 100
5.500%, 12/01/00 250 251
Puerto Rico Commonwealth (MBIA)
6.250%, 07/01/08 1,250 1,380
Salem, Series A, Pre-refunded @ 101
5.600%, 01/01/01 (A) 1,410 1,449
Salem-Keizer School District #24-J,
Callable 06/01/08 @ 100 (FSA)
5.100%, 06/01/12 2,000 1,978
Salem-Keizer School District #24-J,
Callable 06/01/09 @ 100 (SBG)
5.250%, 06/01/12 1,000 998
Tri-County Metropolitan Transportation
District, Series A,
Callable 07/01/09 @ 101
5.250%, 07/01/12 2,000 1,996
Tri-County Metropolitan Transportation
District, Series A, Pre-refunded @ 101
5.600%, 07/01/02 (A) 2,000 2,086
5.800%, 07/01/02 (A) 1,310 1,373
Tri-County Service District
5.000%, 09/01/02 1,570 1,589
Tualatin Hills Park & Recreational
District (FGIC)
5.750%, 03/01/13 870 905
Tualatin Valley Water District, Wolf Creek,
Series A, Callable 12/01/03 @ 100
4.700%, 12/01/04 1,140 1,149
Washington & Clackamas Counties
School District #23-J (FGIC)
5.750%, 06/01/06 1,055 1,118
Washington & Clackamas Counties
School District #23-J, Zero Coupon Bond
4.700%, 06/01/11 (B) 435 232
OREGON INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
Washington County
5.850%, 12/01/01 $ 685 $ 710
Washington County Criminal Justice
Facilities, Pre-refunded @ 100
5.625%, 12/01/04 (A) 850 893
6.000%, 12/01/04 (A) 1,000 1,068
Washington County School District #1-J
5.000%, 11/01/13 1,375 1,329
5.000%, 11/01/14 1,000 957
Washington County School District #3,
Hillsboro (MBIA)
5.750%, 11/01/04 800 846
Washington County School District #15,
Forest Grove, Pre-refunded @ 101 (FGIC)
5.800%, 06/01/04 (A) 575 611
Washington County School District #48-J,
Beaverton
5.900%, 09/01/01 1,065 1,100
Washington County School District #48-J,
Beaverton, Series B,
Callable 06/01/00 @ 100
5.700%, 06/01/02 780 789
Washington County School
District #88-J, Sherwood,
Callable 06/01/05 @ 100 (FSA)
5.700%, 06/01/06 1,000 1,050
Washington, Multnomah & Yamhill
Counties School District #1-J,
Callable 06/01/09 @ 100
5.250%, 06/01/12 1,185 1,180
Washington, Multnomah & Yamhill
Counties School District #1-J,
Callable 11/01/08 @ 100
5.250%, 11/01/09 2,060 2,099
Wilsonville
7.000%, 01/01/00 190 192
Wilsonville, Callable 01/01/00 @ 100
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
5.000%, 12/01/10 1,325 1,278
Yamhill County School
District #29-J, Newberg,
Callable 06/01/04 @ 101 (FSA)
5.600%, 06/01/06 630 659
Yamhill County School District #40,
McMinnville (FGIC)
6.000%, 06/01/08 600 647
----------
TOTAL GENERAL OBLIGATIONS 94,507
----------
REVENUE BONDS -- 40.6%
BUILDING -- 0.6%
Oregon State Fair & Exposition Center,
Callable 10/01/01 @ 103 (AG)
5.400%, 10/01/06 1,010 1,032
----------
EDUCATION -- 4.1%
Multnomah County, University of Portland
Educational Facilities,
Callable 04/01/07 @ 102 (AMBAC)
5.750%, 04/01/10 2,245 2,357
39 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS SEPTEMBER 30, 1999
OREGON INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
Oregon State Health, Housing, Educational &
Cultural Facilities, George Fox University,
Series A, Callable 03/01/07 @ 102
5.400%, 03/01/09 $ 395 $ 401
5.450%, 03/01/10 415 420
Oregon State Health, Housing, Educational &
Cultural Facilities, Lewis & Clark
College (MBIA)
5.250%, 10/01/02 550 565
5.300%, 10/01/03 630 650
Oregon State Health, Housing, Educational &
Cultural Facilities, Reed College, Series A,
Callable 07/01/06 @ 102
5.375%, 07/01/15 2,000 1,941
Salem Educational Facilities,
Willamette University
5.500%, 04/01/04 500 520
Salem Educational Facilities, Willamette
University, Callable 04/01/04 @ 101
5.700%, 04/01/05 500 526
----------
7,380
----------
HEALTHCARE -- 6.2%
Clackamas County Health Facilities
Authority, Series A,
Callable 03/01/02 @ 102 (MBIA)
5.900%, 03/01/03 885 925
Clackamas County Hospital Revenue,
Legacy Health Systems,
Callable 08/15/09 @ 101
5.250%, 02/15/11 2,000 1,985
Clackamas County Hospital Revenue,
Mary's Woods, Series A,
Callable 05/15/09 @ 102
6.125%, 05/15/13 1,000 990
Clackamas County Hospital Revenue,
Sisters Providence, Series A,
Callable 04/01/02 @ 102
6.200%, 10/01/02 680 712
Douglas County Hospital Facilities
Authority, Catholic Health,
Series B (MBIA)
5.500%, 11/15/04 505 527
Medford Hospital Facilities Authority,
Asante Health Systems,
Callable 08/15/09 @ 100 (MBIA)
5.250%, 08/15/11 1,000 992
5.375%, 08/15/12 1,000 994
Medford Hospital Facilities Authority,
Rogue Valley Health Services,
Pre-refunded @ 102 (MBIA)
6.600%, 12/01/00 (A) 300 315
Oregon State Health Sciences,
Zero Coupon Bond (MBIA)
5.310%, 07/01/21 (B) 5,000 1,458
Salem Hospital Facilities Authority,
Callable 08/15/08 @ 101
5.250%, 08/15/14 2,375 2,289
----------
11,187
----------
OREGON INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
HOUSING -- 5.7%
Oregon State Housing & Community
Services, Callable 07/01/03 @ 102
5.750%, 07/01/12 $1,500 $ 1,518
Oregon State Housing & Community
Services, Series A,
Callable 07/01/03 @ 102
4.900%, 07/01/05 1,075 1,072
Oregon State Housing & Community
Services, Series A,
Callable 07/01/04 @ 102
6.400%, 07/01/18 1,185 1,218
Oregon State Housing & Community
Services, Series A,
Callable 07/01/06 @ 102
6.000%, 07/01/16 1,200 1,224
Oregon State Housing & Community
Services, Series B,
Callable 07/01/03 @ 102
5.100%, 07/01/07 430 426
Portland Housing Authority,
Callable 01/01/09 @ 100
5.000%, 01/01/19 3,000 2,753
5.100%, 01/01/27 1,000 888
Portland Housing Authority, Riverwood
Project, Pre-refunded @ 100
6.000%, 01/01/06 (A) 1,170 1,242
----------
10,341
----------
MUNICIPAL BOND BANK -- 0.6%
Oregon State Economic Development
Department, Callable 01/01/02 @ 102
4.850%, 01/01/04 555 562
Oregon State Economic Development
Department, Series A,
Callable 01/01/06 @ 102 (MBIA)
5.000%, 01/01/11 500 493
----------
1,055
----------
POLLUTION CONTROL -- 2.0%
Baker County Pollution Control,
Callable 01/01/00 @ 100 (SBA)
5.750%, 07/01/00 285 286
5.850%, 07/01/01 300 301
5.950%, 07/01/02 315 317
6.050%, 07/01/03 335 337
Port of St. Helens Pollution Control,
Portland General Electric
4.800%, 04/01/10 2,500 2,366
----------
3,607
----------
PUBLIC UTILITY DISTRICT -- 0.3%
Northern Wasco County Hydroelectric Utility,
McNary Dam Fishway Project,
Callable 12/01/03 @ 102
4.750%, 12/01/06 470 471
----------
TRANSPORTATION -- 4.6%
Oregon State Department of Transportation,
Regional Light Rail Fund,
Callable 06/01/04 @ 102 (MBIA)
6.000%, 06/01/05 2,000 2,135
40 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
OREGON INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
Port Portland Airport, Series 7-A,
Escrowed to Maturity (MBIA)
6.125%, 07/01/00 $ 800 $ 815
6.200%, 07/01/01 500 518
Port Portland Airport, Series 7-A,
Pre-refunded @ 101 (MBIA)
6.500%, 07/01/01 (A) 500 524
Port Portland Airport, Series 9-A,
Callable 07/01/01 @ 102 (FGIC)
5.400%, 07/01/04 1,775 1,830
Port Portland Airport, Series 12-A,
Callable 01/01/09 @ 101 (FGIC)
5.250%, 07/01/11 1,000 1,003
5.250%, 07/01/12 1,000 995
Tri-County Metropolitan Transportation
District, Series 1 (MGT)
4.900%, 06/01/09 500 488
----------
8,308
----------
UTILITIES -- 16.5%
Beaverton Water, Callable 06/01/04 @ 100 (FSA)
6.125%, 06/01/14 1,000 1,056
Clackamas County Service District #1,
Callable 10/01/06 @ 100
6.200%, 10/01/09 700 746
Emerald Peoples Utility District (FGIC)
7.200%, 11/01/02 1,235 1,336
Emerald Peoples Utility District, Series B,
Escrowed To Maturity (AMBAC)
7.000%, 11/01/99 630 632
Eugene Electric Utilities,
Callable 08/01/07 @ 100 (FSA)
5.000%, 08/01/11 1,305 1,285
Eugene Electric Utilities,
Callable 08/01/08 @ 100 (FSA)
4.800%, 08/01/13 1,190 1,110
Eugene Electric Utilities,
Continuously Callable @ 100
6.650%, 09/01/00 1,200 1,203
Eugene Electric Utilities, Series B,
Callable 02/01/00 @ 101 (MBIA)
4.750%, 08/01/12 670 632
4.900%, 08/01/14 475 443
Gresham Sewer
4.950%, 06/01/02 615 625
Gresham Sewer, Callable 06/01/02 @ 102
5.250%, 06/01/05 500 512
Marion County Solid Waste & Electric,
Ogden Martin System Project (AMBAC)
5.100%, 10/01/02 1,000 1,023
5.500%, 10/01/06 1,400 1,463
Metropolitan Service District, Waste
Disposal, Continuously Callable
6.950%, 01/01/00 935 942
Portland Sewer Systems, Series A
5.550%, 06/01/04 1,085 1,132
Portland Sewer Systems, Series A,
Callable 06/01/07 @ 100 (FGIC)
5.000%, 06/01/15 2,000 1,884
5.000%, 06/01/08 2,000 2,011
5.000%, 06/01/09 2,250 2,253
Portland Sewer Systems, Series B,
Callable 04/01/02 @ 102 (FGIC)
5.500%, 04/01/04 600 624
OREGON INTERMEDIATE TAX FREE FUND
(CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
Salem Water & Sewer (MBIA)
6.000%, 06/01/06 $1,135 $ 1,218
Salem Water & Sewer,
Callable 06/01/06 @ 100 (MBIA)
5.500%, 06/01/11 1,000 1,018
Tualatin Valley Water District,
Callable 06/01/08 @ 100 (FSA)
5.000%, 06/01/12 1,000 974
Washington County Unified Sewerage
Agency, Callable 10/01/06 @ 101 (FGIC)
5.200%, 10/01/09 1,300 1,320
Washington County Unified Sewerage
Agency, Series 1 (AMBAC)
5.700%, 10/01/04 1,250 1,317
Washington County Unified Sewerage
Agency, Series 1 (FGIC)
5.750%, 10/01/08 1,000 1,061
Washington County Unified Sewerage
Agency, Series 1,
Pre-refunded @ 100 (AMBAC)
5.800%, 10/01/04 (A) 2,000 2,115
----------
29,935
----------
TOTAL REVENUE BONDS 73,316
----------
CERTIFICATES OF PARTICIPATION -- 4.8%
Multnomah County,
Callable 08/01/08 @ 101 (MLO)
4.750%, 08/01/11 2,200 2,104
Multnomah County, Health Facilities
Lease, Series A,
Callable 07/01/03 @ 101 (MLO)
5.100%, 07/01/04 925 948
Multnomah County, Juvenile Justice Project,
Series A, Pre-refunded @ 101 (MLO)
5.700%, 08/01/02 (A) 675 706
Oregon State Department of Administrative
Services, Series A,
Callable 05/01/09 @ 101
(AMBAC) (MLO)
5.000%, 05/01/14 1,000 949
Oregon State Department of Administrative
Services, Series A,
Callable 11/01/05 @ 101 (MBIA) (MLO)
5.000%, 11/01/06 1,350 1,372
Oregon State Department of Administrative
Services, Series B,
Callable 11/01/07 @ 101
(AMBAC) (MLO)
5.000%, 11/01/11 840 826
Oregon State Department of Administrative
Services, Series C,
Callable 05/01/06 @ 101
(MBIA) (MLO)
5.750%, 05/01/07 1,635 1,729
----------
8,634
----------
TAX REVENUE -- 0.6%
Tri-County Metropolitan Transportation
District, Series A,
Callable 08/01/02 @ 101
5.450%, 08/01/04 1,000 1,033
----------
TOTAL MUNICIPAL BONDS
(Cost $177,682) 177,490
----------
41 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS SEPTEMBER 30, 1999
OREGON INTERMEDIATE TAX FREE FUND
(CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- ---------------------------------------------------------------------
RELATED PARTY MONEY MARKET FUND -- 0.1%
First American Tax Free Obligations
Fund (C) 121,918 $ 122
----------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $122) 122
----------
TOTAL INVESTMENTS -- 98.5%
(Cost $177,804) 177,612
----------
OTHER ASSETS AND LIABILITIES, NET -- 1.5% 2,804
----------
NET ASSETS:
Portfolio Capital--Class A
($.0001 par value--2 billion authorized)
based on 206,385 outstanding shares 2,095
Portfolio Capital--Class Y
($.0001 par value--2 billion authorized)
based on 18,355,438 outstanding shares 178,456
Undistributed net investment income 22
Accumulated net realized gain on investments 35
Net unrealized depreciation of investments (192)
----------
TOTAL NET ASSETS -- 100.0% $ 180,416
----------
Net asset value and redemption price
per share--Class A $ 9.72
Maximum sales charge of 2.50% (D) 0.25
----------
Offering price per share--Class A $ 9.97
----------
Net asset value, offering price, and redemption
price per share--Class Y $ 9.72
----------
(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) 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.
(D) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 2.50%.
AG--Asset Guaranty
AMBAC--American Municipal Bond Assurance Corporation
FGIC--Financial Guaranty Insurance Corporation
FSA--Financial Security Assurance
MBIA--Municipal Bond Insurance Association
MGT--Morgan Guaranty Trust
MLO--Municipal Lease Obligation
SBA--Small Business Administration
SBG--School Board Guaranty
The accompanying notes are an integral part of the financial statements.
TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
MUNICIPAL BONDS -- 91.6%
ALASKA -- 1.9%
Alaska State Housing Finance
Authority, Series A,
Callable 06/01/07 @ 102 (RB) (MBIA)
5.900%, 12/01/19 $1,000 $ 1,004
----------
CALIFORNIA -- 0.8%
California State, Callable 04/01/09 @ 101 (GO)
4.750%, 04/01/22 500 430
----------
COLORADO -- 4.0%
La Junta Hospital, Arkansas Valley Medical
Center Project,
Callable 04/01/09 @ 101 (RB)
6.000%, 04/01/19 1,000 936
Montrose County Health Care,
Pre-refunded @ 102 (RB)
8.250%, 11/01/02 (A) 1,000 1,125
----------
2,061
----------
FLORIDA -- 0.6%
Clay County Development Authority,
Cargill Project,
Callable 03/01/02 @ 102 (GO)
6.400%, 03/01/11 300 316
----------
ILLINOIS -- 16.7%
Chicago, O'Hare Airport Project, Series A,
Callable 09/01/09 @ 101 (RB)
5.350%, 09/01/16 1,000 911
Chicago, O'Hare Airport Project,
Series B (RB) (AMT)
5.200%, 04/01/11 1,000 929
Illinois State Development Finance
Authority, Pollution Control, Series A,
Callable 07/01/06 @ 102 (RB)
7.375%, 07/01/21 500 551
Illinois State Educational Facilities Authority,
Augustana College,
Callable 10/01/07 @ 100 (RB) (CLE)
5.875%, 10/01/17 500 500
Illinois State Educational Facilities Authority,
Augustana College,
Callable 10/01/08 @ 100 (RB)
5.250%, 10/01/18 1,000 888
Illinois State Health Facilities Authority,
Hospital Sisters Services,
Pre-refunded @ 102 (MBIA)
9.767%, 06/07/02 (A)(B) 1,000 1,125
Illinois State Toll Highway Authority,
Series A (RB)
6.300%, 01/01/12 1,000 1,083
Illinois State University Improvements,
Pre-refunded @ 100 (COP) (MLO)
7.550%, 02/01/02 (A) 110 118
7.600%, 02/01/02 (A) 115 123
7.700%, 02/01/02 (A) 100 107
7.700%, 02/01/02 (A) 100 107
Rock Island, Friendship Manor Project (RB)
7.000%, 06/01/06 1,100 1,123
42 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
Rock Island, Friendship Manor Project,
Callable 06/01/03 @ 102 (RB)
7.200%, 06/01/13 $ 400 $ 411
Southern Illinois University, Housing &
Auxiliary, Zero Coupon Bond,
Series A (RB) (MBIA)
5.500%, 04/01/20 (C) 2,280 673
----------
8,649
----------
INDIANA -- 7.8%
Hammond Multiple School Building,
Series B, Escrowed to
Maturity (RB) (MLO)
6.000%, 01/15/13 1,000 1,059
Indiana State Municipal Power Agency,
Power Supply, Series B (RB) (MBIA)
6.000%, 01/01/11 1,000 1,064
6.000%, 01/01/12 1,000 1,060
Lake County Redevelopment Authority
(RB) (MBIA) (MLO)
6.500%, 02/01/16 800 840
----------
4,023
----------
MASSACHUSETTS -- 3.9%
Massachusetts State Turnpike Authority,
Highway Improvements, Zero Coupon
Bond, Series A (MBIA)
5.950%, 01/01/28 (C) 10,500 1,996
----------
MICHIGAN -- 1.0%
Lakeview Community School,
Pre-refunded @ 100 (GO) (FGIC)
5.750%, 05/01/07 (A) 220 234
5.750%, 05/01/07 (A) 280 297
----------
531
----------
MINNESOTA -- 16.4%
Austin Housing & Redevelopment Authority,
Gerard Project Health Care Facilities,
Callable 09/01/09 @ 102 (RB)
6.625%, 09/01/29 1,000 964
Brooklyn Center Health Care Facility,
Callable 12/01/03 @ 102 (RB)
7.600%, 12/01/18 400 417
Cuyana Range Hospital District, Series A,
Callable 06/01/07 @ 102 (RB)
6.000%, 06/01/29 1,000 903
Fergus Falls Health Care Facilities Authority,
Series A, Callable 11/01/04 @ 102 (RB)
7.000%, 11/01/19 500 509
Glencoe Hospital Board,
Callable 08/01/04 @ 102 (RB)
6.750%, 04/01/16 485 485
Hopkins, Multifamily Housing Renaissance
Project, Callable 04/01/07 @102 (RB)
6.250%, 04/01/15 500 515
Plymouth, Mission Farms Nursing Home
Project, Callable 08/01/04 @ 102 (RB)
7.500%, 08/01/24 500 524
Rochester Health Care Facilities Authority,
Series A, Callable 11/15/02 @ 104
7.760%, 11/15/15 (B) 1,000 1,053
TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
Roseville Housing Facilities Authority,
Pre-refunded @ 102 (RB)
7.125%, 10/01/03 (A) $1,000 $ 1,109
St. Anthony Housing & Redevelopment
Authority, Callable 05/20/06 @ 102
(RB) (GNMA) (FHA)
6.250%, 11/20/25 1,000 1,025
St. Paul Housing & Redevelopment Authority,
Como Lake Project, Series B (RB) (FHA)
7.500%, 03/01/26 (D) 500 490
White Bear Lake Care Center,
Callable 11/01/03 @ 102 (RB)
8.250%, 11/01/12 500 537
----------
8,531
----------
MONTANA -- 0.5%
Sidney Nursing Home,
Pre-refunded 06/01/00 @ 102 (RB)
9.000%, 06/01/11 (A) 250 263
----------
NEBRASKA -- 2.0%
Nebraska Public Power District, Series C,
Pre-refunded @ 101 (RB)
4.750%, 01/01/04 (A) 1,000 1,019
----------
NEW JERSEY -- 3.9%
New Jersey State, Series E (GO)
5.000%, 07/15/04 2,000 2,044
----------
NEW MEXICO -- 4.4%
New Mexico State Finance Authority,
Mortgage Backed Securities (RB) (GNMA)
6.400%, 07/01/15 280 281
New Mexico State Finance Authority,
Mortgage Backed Securities,
Series D (RB)
6.200%, 07/01/15 1,985 1,991
----------
2,272
----------
NORTH DAKOTA -- 7.4%
Mercer County Pollution Control,
Antelope Valley Station (RB) (AMBAC)
7.200%, 06/30/13 3,300 3,838
----------
SOUTH DAKOTA -- 3.8%
South Dakota Economic Development
Finance Authority, DTS Inc. Project,
Series A, Callable 04/01/09 @ 102
(RB) (AMT)
5.500%, 04/01/19 1,055 971
South Dakota State Health & Educational
Facilities Authority,
Callable 07/01/06 @ 102 (RB) (MBIA)
6.000%, 07/01/14 1,000 1,024
----------
1,995
----------
TEXAS -- 4.3%
Fort Bend Independent School District,
Pre-refunded @ 100 (GO)
5.000%, 02/15/05 (A) 500 471
Harts Bluff School District (COP)
8.800%, 11/15/00 50 50
43 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS SEPTEMBER 30, 1999
TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------
Houston Employment Community (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 30
8.050%, 05/01/07 20 20
North Central Health Facility, Series A,
Pre-refunded @ 104 (RB) (MBIA)
9.542%, 06/19/01 (A)(B) 1,000 1,113
----------
2,224
----------
UTAH -- 2.1%
Intermountain Power Agency, Power Supply,
Series A (RB) (AMBAC)
6.500%, 07/01/11 1,000 1,110
----------
WASHINGTON -- 1.3%
Washington State Public Power Supply (RB)
7.125%, 07/01/16 600 691
----------
WEST VIRGINIA -- 2.1%
West Virginia State, Series D (GO) (FGIC)
6.500%, 11/01/26 1,000 1,087
----------
WISCONSIN -- 6.7%
Dallas, Nursing Home Project,
Callable 05/01/03 @ 102 (RB) (FHA)
6.250%, 05/01/19 1,000 976
Watertown Community Development
Authority, Callable 03/01/00 @ 103 (RB)
8.500%, 03/01/19 95 99
Wisconsin State Health & Education Facilities
Authority, Aurora Health Care,
Callable 02/15/09 @ 101 (RB)
5.500%, 02/15/20 1,000 895
Wisconsin State Health & Education
Facilities Authority, Franciscan Skemp
Medical Center (RB)
6.125%, 11/15/15 1,000 1,030
Wisconsin State Health & Education
Facilities Authority, Monroe Clinic,
Callable 02/15/09 @ 101 (RB)
5.375%, 02/15/22 500 446
----------
3,446
----------
TOTAL MUNICIPAL BONDS
(Cost $46,737) 47,530
----------
TAX FREE FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- ---------------------------------------------------------------------
CLOSED-END MUTUAL FUNDS -- 3.7%
Van Kampen Advanced Municipal
Income Trust 18,400 $ 248
Van Kampen Advanced Municipal
Income Trust II 14,300 163
Van Kampen Municipal Opportunity Trust 6,900 96
Van Kampen Municipal Opportunity Trust II 13,200 157
Van Kampen Municipal Trust 58,700 818
Van Kampen Strategic Sector
Municipal Trust 35,800 416
----------
TOTAL CLOSED-END MUTUAL FUNDS
(Cost $2,143) 1,898
----------
RELATED PARTY MONEY MARKET FUND -- 3.0%
First American Tax Free Obligations
Fund (E) 1,569,583 1,570
----------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $1,570) 1,570
----------
TOTAL INVESTMENTS -- 98.3%
(Cost $50,450) 50,998
----------
OTHER ASSETS AND LIABILITIES, NET -- 1.7% 869
----------
NET ASSETS:
Portfolio Capital--Class A
($.0001 par value--2 billion authorized)
based on 3,122,006 outstanding shares 31,677
Portfolio Capital--Class C
($.0001 par value--2 billion authorized)
based on 10,444 outstanding shares 113
Portfolio Capital--Class Y
($.0001 par value--2 billion authorized)
based on 1,789,637 outstanding shares 19,857
Undistributed net investment income 17
Accumulated net realized loss on investments (345)
Net unrealized appreciation of investments 548
----------
Total Net Assets -- 100.0% $ 51,867
----------
Net asset value and redemption price
per share--Class A $ 10.54
Maximum sales charge of 2.50% (F) 0.27
----------
Offering price per share--Class A $ 10.81
----------
Net asset value per share--Class C (G) $ 10.52
Maximum sales charge of 1.00% (H) 0.11
----------
Offering price per share--Class C $ 10.63
----------
Net asset value, offering price, and redemption
price per share--Class Y $ 10.54
----------
44 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
TAX FREE FUND (CONCLUDED)
DESCRIPTION
- ---------------------------------------------------------------------
(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.
(C) The rate shown is the effective yield at the time of purchase.
(D) Security currently in partial default and is only 93.5% guaranteed. The
effective interest rate is 7.013%.
(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%.
(G) Class C has a contingent deferred sales charge. For a description of a
possible redemption charge, see the notes to the financial statements.
(H) 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 Corporation
AMT--Alternative Minimum Tax
CLE--Connie Lee
COP--Certificate 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.
45 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
OPERATIONS FOR THE YEAR ENDED SEPTEMBER 30, 1999, 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 $ 1,975 $ 3,203 $ 23,602
Dividends -- -- --
- -------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 1,975 3,203 23,602
=========================================================================================================================
EXPENSES:
Investment advisory fees 287 447 3,296
Less: Waiver of investment advisory fees (89) (126) (787)
Administrator fees 45 70 513
Transfer agent fees 24 23 45
Custodian fees 12 19 141
Directors' fees 1 1 8
Registration fees 2 2 19
Professional fees 1 2 16
Printing 3 4 29
Distribution fees - Class A 1 11 28
Less: Waiver of distribution fees - Class A (1) (11) (28)
Distribution fees - Class C -- -- --
Less: Waiver of distribution fees - Class C -- -- --
Other 2 5 16
- -------------------------------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 288 447 3,296
=========================================================================================================================
INVESTMENT INCOME - NET 1,687 2,756 20,306
=========================================================================================================================
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS - NET:
Net realized gain (loss) on investments (63) (30) (986)
Net change in unrealized appreciation/depreciation of
investments (1,773) (3,358) (22,883)
- -------------------------------------------------------------------------------------------------------------------------
NET LOSS ON INVESTMENTS (1,836) (3,388) (23,869)
=========================================================================================================================
NET DECREASE IN NET ASSETS RESULTING FROM
OPERATIONS $ (149) $ (632) $ (3,563)
=========================================================================================================================
</TABLE>
The accompanying notes are an integral part of the financial statements.
46 '99 ANNUAL 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>
$ 15,804 $ 7,643 $ 9,460 $ 2,723
-- 38 -- 26
- -----------------------------------------------------------------------
15,804 7,681 9,460 2,749
=======================================================================
2,219 906 1,325 321
(538) (280) (320) (106)
345 141 206 50
36 77 22 54
95 39 57 14
5 2 3 1
13 5 8 2
11 4 6 2
20 8 12 3
32 290 3 94
(32) -- (3) --
-- 7 -- --
-- (2) -- --
13 4 6 1
- -----------------------------------------------------------------------
2,219 1,201 1,325 436
=======================================================================
13,585 6,480 8,135 2,313
=======================================================================
349 (16) 38 (345)
(15,089) (8,149) (9,416) (3,488)
- -----------------------------------------------------------------------
(14,740) (8,165) (9,378) (3,833)
=======================================================================
$ (1,155) $(1,685) $(1,243) $ (1,520)
=======================================================================
</TABLE>
47 '99 ANNUAL 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
9/30/99 9/30/98 9/30/99 9/30/98 9/30/99 9/30/98
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Investment income - net $ 1,687 $ 1,489 $ 2,756 $ 2,669 $ 20,306 $ 19,437
Net realized gain (loss) on investments (63) 103 (30) 79 (986) 2,358
Net change in unrealized appreciation/depreciation of investments (1,773) 1,040 (3,358) 1,563 (22,883) 9,075
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations (149) 2,632 (632) 4,311 (3,563) 30,870
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (17) -- (181) (181) (477) (301)
Class C -- -- -- -- -- --
Class Y (1,655) (1,484) (2,569) (2,484) (19,747) (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 (1,775) (1,490) (2,868) (2,756) (22,582) (21,982)
====================================================================================================================================
CAPITAL SHARE TRANSACTIONS (1):
Class A:
Proceeds from sales 2,843 78 1,961 2,052 7,916 8,876
Reinvestment of distributions 8 117 114 275 152
Payments for redemptions (882) -- (1,426) (2,165) (6,033) (3,834)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class A transactions 1,969 78 652 1 2,158 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 12,285 8,085 10,468 12,182 82,876 85,034
Reinvestment of distributions 18 24 15 20 2,114 2,792
Payments for redemptions (6,194) (5,260) (9,598) (8,391) (77,736) (66,846)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class Y transactions 6,109 2,849 885 3,811 7,254 20,980
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
capital share transactions 8,078 2,927 1,537 3,812 9,412 26,174
- ------------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 6,154 4,069 (1,963) 5,367 (16,733) 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) $ 43,511 $ 37,357 $ 61,969 $ 63,932 $453,177 $469,910
====================================================================================================================================
</TABLE>
(1) See note 4 in Notes to Financial Statements for additional information.
(2) Includes undistributed net investment income (000) of $19 and $4 for
California Intermediate Tax Free Fund, $9 and $4 for Colorado Intermediate
Tax Free Fund, $91 and $13 for Intermediate Tax Free Fund, $51 and $26 for
Minnesota Intermediate Tax Free Fund, $171 and $211 for Minnesota Tax Free
Fund, $22 and $3 for Oregon Intermediate Tax Free Fund, and $17 and $28 for
Tax Free Fund, at September 30, 1999, and September 30, 1998, respectively.
The accompanying notes are an integral part of the financial statements.
48 '99 ANNUAL 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
9/30/99 9/30/98 9/30/99 9/30/98 9/30/99 9/30/98 9/30/99 9/30/98
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 13,585 $ 13,525 $ 6,480 $ 6,601 $ 8,135 $ 8,036 $ 2,313 $ 2,203
349 940 (16) 829 38 570 (345) 526
(15,089) 6,149 (8,149) 3,157 (9,416) 3,153 (3,488) 897
- -----------------------------------------------------------------------------------------------------------------
(1,155) 20,614 (1,685) 10,587 (1,243) 11,759 (1,520) 3,626
- -----------------------------------------------------------------------------------------------------------------
(557) (369) (5,793) (5,936) (49) -- (1,858) (2,173)
-- -- (35) -- -- -- (2) --
(13,003) (13,130) (690) (426) (8,067) (8,033) (466) (2)
(27) (26) (630) (754) -- -- (450) (237)
-- -- -- -- -- -- -- --
(844) (1,041) (47) (51) (483) (273) (6) --
- -----------------------------------------------------------------------------------------------------------------
(14,431) (14,566) (7,195) (7,167) (8,599) (8,306) (2,782) (2,412)
=================================================================================================================
7,476 4,768 14,016 10,848 3,538 -- 2,072 1,327
340 206 4,970 5,175 25 -- 1,349 1,738
(2,825) (2,271) (21,970) (25,945) (1,468) -- (7,577) (13,562)
- -----------------------------------------------------------------------------------------------------------------
4,991 2,703 (2,984) (9,922) 2,095 -- (4,156) (10,497)
- -----------------------------------------------------------------------------------------------------------------
-- -- 1,821 -- -- -- 112 --
-- -- 20 -- -- -- 2 --
-- -- (91) -- -- -- (1) --
- -----------------------------------------------------------------------------------------------------------------
-- -- 1,750 -- -- -- 113 --
- -----------------------------------------------------------------------------------------------------------------
41,117 51,692 15,055 1,242 31,317 20,945 21,777 351
397 367 322 309 471 397 47 --
(64,442) (37,457) (5,201) (2,626) (31,008) (19,481) (2,318) --
- -----------------------------------------------------------------------------------------------------------------
(22,928) 14,602 10,176 (1,075) 780 1,861 19,506 351
- -----------------------------------------------------------------------------------------------------------------
(17,937) 17,305 8,942 (10,997) 2,875 1,861 15,463 (10,146)
- -----------------------------------------------------------------------------------------------------------------
(33,523) 23,353 62 (7,577) (6,967) 5,314 11,161 (8,932)
327,928 304,575 127,092 134,669 187,383 182,069 40,706 49,638
=================================================================================================================
$ 294,405 $ 327,928 $ 127,154 $ 127,092 $ 180,416 $ 187,383 $51,867 $ 40,706
=================================================================================================================
</TABLE>
49 '99 ANNUAL 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 $ 10.37 $ 0.42 $ (0.46) $ (0.41) $ (0.03)
1998 10.04 0.43 0.33 (0.43) --
1997(1) 10.00 0.06 0.04 (0.06) --
Class Y
1999 $ 10.36 $ 0.42 $ (0.45) $ (0.41) $ (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 $ 10.89 $ 0.46 $ (0.55) $ (0.46) $ (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) --
Class Y
1999 $ 10.88 $ 0.46 $ (0.57) $ (0.46) $ (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) --
INTERMEDIATE TAX FREE FUND
Class A
1999 $ 11.05 $ 0.46 $ (0.55) $ (0.46) $ (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) --
Class Y
1999 $ 11.03 $ 0.46 $ (0.55) $ (0.46) $ (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) --
MINNESOTA INTERMEDIATE TAX FREE FUND
Class A
1999 $ 10.29 $ 0.43 $ (0.47) $ (0.43) $ (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) --
Class Y
1999 $ 10.26 $ 0.43 $ (0.47) $ (0.43) $ (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) --
- --------------------------------------------------------------------------------------
</TABLE>
+ Returns are for the period indicated and have not been annualized.
(A) Excluding sales charges.
(1) Commenced operations on August 8, 1997. All ratios for the period have been
annualized.
The accompanying notes are an integral part of the financial statements.
50 '99 ANNUAL 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>
$ 9.89 (0.40)% $ 2,042 0.70% 4.19% 1.17% 9%
10.37 7.80 82 0.70 4.22 1.21 22
10.04 1.02 + 1 0.69 4.48 1.36 3
$ 9.89 (0.30)% $ 41,469 0.70% 4.11% 0.92% 9%
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
$ 10.32 (0.88)% $ 4,733 0.70% 4.32% 1.15% 33%
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
$ 10.29 (1.07)% $ 57,236 0.70% 4.31% 0.90% 33%
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
$ 10.45 (0.78)% $ 10,713 0.70% 4.31% 1.12% 23%
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
$ 10.43 (0.79)% $442,464 0.70% 4.31% 0.87% 23%
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
$ 9.79 (0.43)% $ 14,629 0.70% 4.30% 1.12% 12%
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
$ 9.76 (0.44)% $279,776 0.70% 4.28% 0.87% 12%
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
- -------------------------------------------------------------------------------------------------------
</TABLE>
51 '99 ANNUAL 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 $ 11.46 $ 0.55 $ (0.69) $ (0.56) $ (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) --
Class C
1999(1) $ 11.38 $ 0.37 $ (0.71) $ (0.35) $ --
Class Y
1999 $ 11.45 $ 0.58 $ (0.69) $ (0.59) $ (0.06)
1998 11.14 0.60 0.36 (0.59) (0.06)
1997(2) 11.16 0.10 (0.02) (0.10) --
OREGON INTERMEDIATE TAX FREE FUND
Class A
1999(3) $ 10.23 $ 0.29 $ (0.51) $ (0.29) $ --
Class Y
1999 $ 10.24 $ 0.43 $ (0.49) $ (0.43) $ (0.03)
1998 10.05 0.45 0.21 (0.45) (0.02)
1997(4) 10.00 0.07 0.05 (0.07) --
TAX FREE FUND (B)
Class A
1999 $ 11.53 $ 0.55 $ (0.86) $ (0.55) $ (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) --
Class C
1999(1) $ 11.34 $ 0.35 $ (0.82) $ (0.35) $ --
Class Y
1999 $ 11.54 $ 0.57 $ (0.86) $ (0.58) $ (0.13)
1998(5) 11.31 0.10 0.22 (0.09) --
- ---------------------------------------------------------------------------------------
</TABLE>
+ 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 National
Association.
(1) For the year ended September 30, 1999. Class C shares have been offered
since February 1, 1999. All ratios for the period have been annualized.
(2) Class Y shares have been offered since August 1, 1997. All ratios for the
period have been annualized.
(3) For the year ended September 30, 1999. Class A shares have been offered
since February 1, 1999. All ratios for the period have been annualized.
(4) Commenced operations on August 8, 1997. All ratios for the period have been
annualized.
(5) Class Y shares have been offered since July 31, 1998. All ratios for the
period have been annualized.
The accompanying notes are an integral part of the financial statements.
52 '99 ANNUAL 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>
$ 10.70 (1.31)% $108,116 0.95% 4.98% 1.17% 15%
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
$ 10.69 (3.03)%+ $ 1,682 1.35% 4.70% 1.87% 15%
$ 10.69 (1.07)% $ 17,356 0.70% 5.26% 0.87% 15%
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
$ 9.72 (2.22)%+ $ 2,005 0.70% 4.37% 1.12% 13%
$ 9.72 (0.66)% $178,411 0.70% 4.30% 0.87% 13%
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
$ 10.54 (2.81)% $ 32,893 1.00% 4.97% 1.23% 21%
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
$ 10.52 (4.23)%+ $ 110 1.35% 4.54% 1.93% 21%
$ 10.54 (2.66)% $ 18,864 0.71% 5.26% 1.01% 21%
11.54 2.83 + 355 0.85 5.61 0.91 7
- ----------------------------------------------------------------------------------------------------------
</TABLE>
53 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
NOTES TO
FINANCIAL STATEMENTS SEPTEMBER 30, 1999
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 18 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 60 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 60 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.
54 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
SECURITY TRANSACTIONS AND INVESTMENT INCOME - The Funds record security
transactions on the trade date of the security purchase or sale. Interest
income, including 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 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 September 30th or
October 31st.
Net investment income and net realized gains (losses) may differ for
financial statement and tax purposes because of temporary or permanent
book/tax differences. These differences are primarily due to losses
deferred due to wash sales.
The character of distributions made during the year from net investment
income or net realized gains may differ from its ultimate
characterization for federal income tax purposes. In addition, due to the
timing of dividend distributions, 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.
On the Statements of Net Assets the following adjustments were made
(000):
<TABLE>
<CAPTION>
ACCUMULATED UNDISTRIBUTED ADDITIONAL
FUND REALIZED GAIN/(LOSS) NET INVESTMENT INCOME PAID IN CAPITAL
--------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Colorado Intermediate Tax Free $1 $(1) --
Intermediate Tax Free 4 (4) --
Minnesota Tax Free 2 (2) --
Tax Free 1 2 (3)
--------------------------------------------------------------------------------------------
</TABLE>
The California Intermediate Tax Free, Colorado Intermediate Tax Free,
Intermediate Tax Free, Minnesota Tax Free and Tax Free Funds incurred
losses in the amount of $63,000, $70,000, $986,000, $16,000 and $345,000,
respectively, from November 1, 1998, to September 30, 1999. As permitted
by tax regulations, the funds intend to elect to defer and treat these
losses as arising in the fiscal year ending September 30, 2000.
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 September 30, 1999, the Intermediate Tax
Free Fund and the Minnesota Intermediate Tax Free Fund had outstanding
when-issued commitments of $2,069,620 and $2,038,820 respectively.
55 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
NOTES TO
FINANCIAL STATEMENTS SEPTEMBER 30, 1999
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 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"), First American Asset Management (the "Advisor"), a division
of U.S. Bank National Association ("U.S. Bank"), 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 0.70% of the average daily net
assets. The advisor intends to waive fees during the current fiscal year
so that total fund operating expenses do not exceed expense limitations.
Fee waivers may be discontinued at any time.
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 certain accounting, legal and shareholder services, at an annual
rate of 0.12% of each FAIF fund's average daily net assets, with a
minimum annual fee of $50,000. 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 0.105% for their relative
share of the excess net assets. Fees are computed daily and paid monthly.
SUB-ADMINISTRATION FEES - The Advisor assists SIMC and provides
sub-administration services for the Funds. For these services, SIMC
compensates the sub-administrator monthly at an annual rate of up to
0.05% of each Fund's average daily net assets. Under this agreement, SIMC
paid U.S. Bank $8,411,000 in aggregate for the First American
56 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
Family of Funds. The fees for the year ended September 30, 1999, were
approximately 0.028% of average daily net assets. For the funds included
in this annual report, the amounts paid were as follows (000):
-------------------------------------------------------------------------
California Intermediate Tax Free Fund $ 11
Colorado Intermediate Tax Free Fund 17
Intermediate Tax Free Fund 128
Minnesota Intermediate Tax Free Fund 86
Minnesota Tax Free Fund 22
Oregon Intermediate Tax Free Fund 51
Tax Free Fund 26
-------------------------------------------------------------------------
CUSTODIAN FEES - Through a separate contractual agreement, U.S. Bank
serves as the Funds' custodian. The fee for each Fund is equal to an
annual rate of 0.03% 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% of each
Funds average daily net assets of the Class A shares and 1.00% of the
Class C shares, respectively, which may be used by SIDCO to provide
compensation for sales support and distribution activities. All Class A
distribution fees are currently being waived in California Intermediate
Tax Free, Colorado Intermediate Tax Free, Intermediate Tax Free,
Minnesota Intermediate Tax Free and Oregon Intermediate Tax Free Funds.
For Class C, the distributor is currently waiving 0.35% of average daily
net assets for the Minnesota Tax Free and Tax Free Funds. No distribution
fees are paid by Class Y shares. Under the agreement, SIDCO paid U.S.
Bank and its affiliates the following amounts for the Funds included in
this annual report, for the year ended September 30, 1999 (000):
U.S. BANCORP U.S. BANK
U.S. BANK PIPER JAFFRAY TRUST
-------------------------------------------------------------------------
Minnesota Tax Free Fund $45 $208 $ 1
Tax Free Fund 14 69 --
-------------------------------------------------------------------------
TRANSFER AGENT FEES - DST Systems, Inc. provides transfer agency services
for the Funds. Effective October 1, 1998, FAIF appointed U.S. Bank 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 and its affiliates. As the Servicing Agent,
U.S. Bank was paid $4,921,000 in aggregate for the year ended September
30, 1999. For the year ended September 30, 1999, fees paid to U.S. Bank
for the funds included in this report were as follows (000):
-------------------------------------------------------------------------
Minnesota Tax Free Fund $ 34
Tax Free Fund 15
-------------------------------------------------------------------------
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 year ended September 30, 1999, legal fees and expenses were paid
to a law firm of which the Secretary of the Funds is a partner.
57 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
NOTES TO
FINANCIAL STATEMENTS SEPTEMBER 30, 1999
SALES CHARGES - A Contingent Deferred Sales Charge ("CDSC") of 1.00% is
imposed on redemptions made in the Class C shares for the first 18
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 year ended September 30, 1999, sales charges retained by SIDCO
for distributing the First American Family of Funds' shares were
approximately $159,000.
58 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
4 > CAPITAL SHARE TRANSACTIONS
Capital share transactions for the funds were as follows (000):
<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
9/30/99 9/30/98 9/30/99 9/30/98 9/30/99 9/30/98
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Class A:
Shares issued 283 8 187 193 727 816
Shares issued in lieu of cash distributions 1 -- 11 10 25 14
Shares redeemed (86) -- (134) (203) (559) (353)
- -----------------------------------------------------------------------------------------------------------------------
TOTAL CLASS A TRANSACTIONS 198 8 64 -- 193 477
=======================================================================================================================
Class C:
Shares issued -- -- -- -- -- --
Shares issued in lieu of cash distributions -- -- -- -- -- --
Shares redeemed -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
TOTAL CLASS C TRANSACTIONS -- -- -- -- -- --
=======================================================================================================================
Class Y:
Shares issued 1,202 799 982 1,141 7,662 7,826
Shares issued in lieu of cash distributions 2 2 1 2 196 257
Shares redeemed (610) (521) (904) (787) (7,207) (6,165)
- -----------------------------------------------------------------------------------------------------------------------
TOTAL CLASS Y TRANSACTIONS 594 280 79 356 651 1918
=======================================================================================================================
NET INCREASE IN CAPITAL SHARES 792 288 143 356 844 2,395
=======================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
MINNESOTA INTERMEDIATE MINNESOTA OREGON 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
9/30/99 9/30/98 9/30/99 9/30/98 9/30/99 9/30/98
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Class A:
Shares issued 736 470 1,245 964 354 --
Shares issued in lieu of cash distributions 34 20 445 460 2 --
Shares redeemed (279) (224) (1,971) (2,310) (150) --
- -----------------------------------------------------------------------------------------------------------------------
TOTAL CLASS A TRANSACTIONS 491 266 (281) (886) 206 --
=======================================================================================================================
Class C:
Shares issued -- -- 163 -- -- --
Shares issued in lieu of cash distributions -- -- 2 -- -- --
Shares redeemed -- -- (8) -- -- --
- -----------------------------------------------------------------------------------------------------------------------
TOTAL CLASS C TRANSACTIONS -- -- 157 -- --
=======================================================================================================================
Class Y:
Shares issued 4,072 5,109 1,351 111 3,112 2,079
Shares issued in lieu of cash distributions 40 36 29 28 47 39
Shares redeemed (6,406) (3,705) (469) (234) (3,108) (1,934)
- -----------------------------------------------------------------------------------------------------------------------
TOTAL CLASS Y TRANSACTIONS (2,294) 1,440 911 (95) 51 184
=======================================================================================================================
NET INCREASE (DECREASE) IN CAPITAL SHARES (1,803) 1,706 787 (981) 257 184
=======================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
TAX FREE
FUND
- ---------------------------------------------------------------------
10/1/98 10/1/97
to to
9/30/99 9/30/98
- ---------------------------------------------------------------------
<S> <C> <C>
Class A:
Shares issued 184 117
Shares issued in lieu of cash distributions 121 154
Shares redeemed (683) (1,199)
- ---------------------------------------------------------------------
TOTAL CLASS A TRANSACTIONS (378) (928)
=====================================================================
Class C:
Shares issued 10 --
Shares issued in lieu of cash distributions -- --
Shares redeemed -- --
- ---------------------------------------------------------------------
TOTAL CLASS C TRANSACTIONS 10
=====================================================================
Class Y:
Shares issued 1,965 31
Shares issued in lieu of cash distributions 4 --
Shares redeemed (210) --
- ---------------------------------------------------------------------
TOTAL CLASS Y TRANSACTIONS 1,759 31
=====================================================================
NET INCREASE (DECREASE) IN CAPITAL SHARES 1,391 (897)
=====================================================================
</TABLE>
59 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
NOTES TO
FINANCIAL STATEMENTS SEPTEMBER 30, 1999
5 > INVESTMENT SECURITY TRANSACTIONS
During the year ended September 30, 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 $ 10,742 $ 3,483
Colorado Intermediate Tax Free Fund 21,023 20,490
Intermediate Tax Free Fund 110,209 103,860
Minnesota Intermediate Tax Free Fund 37,466 53,291
Minnesota Tax Free Fund 24,778 17,524
Oregon Intermediate Tax Free Fund 26,738 24,052
Tax Free Fund 22,211 8,399
-------------------------------------------------------------------------
At September 30, 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 September 30, 1999,
is as follows (000):
AGGREGATE GROSS AGGREGATE GROSS
APPRECIATION DEPRECIATION NET
-------------------------------------------------------------------------
California Intermediate Tax Free Fund $ 875 $ (379) $ 496
Colorado Intermediate Tax Free Fund 1,763 (862) 901
Intermediate Tax Free Fund 5,831 (6,013) (182)
Minnesota Intermediate Tax Free Fund 5,146 (3,476) 1,670
Minnesota Tax Free Fund 3,939 (1,966) 1,973
Oregon Intermediate Tax Free Fund 2,790 (2,982) (192)
Tax Free Fund 1,545 (997) 548
-------------------------------------------------------------------------
6 > CONCENTRATION OF CREDIT RISK
The Intermediate Tax Free and Tax Free 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.
These Funds invest in securities that include revenue bonds, certificates
of participation and general obligation bonds. At September 30, 1999, the
percentage of portfolio investments by each revenue source was as
follows:
INTERMEDIATE
TAX FREE TAX FREE
FUND FUND
-------------------------------------------------------------------------
Revenue Bonds:
Authority 1% 1%
Building 5 4
Education 5 7
Healthcare 12 36
Housing 8 11
Pollution Control 2 9
Transportation 8 10
Utility 14 10
Other 4 --
General Obligations 40 10
Certificates of Participation 1 2
------------------------------
100% 100%
-------------------------------------------------------------------------
60 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
The rating of long-term securities as a percentage of total value of
investments at September 30, 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 65% 59% 65% 70% 36% 54% 52%
AA/Aa 16 23 21 18 28 30 10
A/A 13 8 11 4 11 15 9
BBB/Baa 6 3 1 3 4 -- 7
D -- -- -- -- 1 -- 1
NR -- 7 2 5 20 1 21
------------------------------------------------------------------------------------------------------
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.
7 > 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:
<TABLE>
<CAPTION>
PIPER ACQUIRED FUND FAIF ACQUIRING FUND
-------------------------------------------------------------------------
<S> <C>
Minnesota Tax Exempt Minnesota Tax Free
National Tax Exempt Tax Free
-------------------------------------------------------------------------
</TABLE>
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.
The net assets prior to reorganization and shares issued and redeemed
were as follows:
<TABLE>
<CAPTION>
ACQUIRING FUND'S ACQUIRED FUND'S
FAIF FUND NET ASSETS SHARES ISSUED SHARES REDEEMED
-------------------------------------------------------------------------
<S> <C> <C> <C>
Minnesota Tax Free $ -- 11,152,396 11,152,396
Tax Free -- 3,635,037 3,635,037
-------------------------------------------------------------------------
</TABLE>
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>
Minnesota Tax-Exempt $116,743,329 $ 85,000 $823,340 $7,829,650 $125,481,319
National Tax-Exempt 37,374,741 (2,106) 397,386 3,315,331 41,085,352
-----------------------------------------------------------------------------------------------------------
</TABLE>
61 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
NOTICE TO
SHAREHOLDERS SEPTEMBER 30, 1999 (UNAUDITED)
THE INFORMATION SET FORTH BELOW IS FOR EACH FUND'S FISCAL YEAR AS
REQUIRED BY FEDERAL LAWS. SHAREHOLDERS, HOWEVER, MUST REPORT
DISTRIBUTIONS ON A CALENDAR YEAR BASIS FOR INCOME TAX PURPOSES, WHICH MAY
INCLUDE DISTRIBUTIONS FOR PORTIONS OF TWO FISCAL YEARS OF A FUND.
ACCORDINGLY, THE INFORMATION NEEDED BY SHAREHOLDERS FOR INCOME TAX
PURPOSES WILL BE SENT TO THEM IN EARLY 2000. PLEASE CONSULT YOUR TAX
ADVISOR FOR PROPER TREATMENT OF THIS INFORMATION.
Dear First American Shareholders:
For the fiscal year ended September 30, 1999, each Fund has designated
long term capital gains and exempt income with regard to distributions
paid during the year as follows:
<TABLE>
<CAPTION>
LONG TERM ORDINARY
CAPITAL GAINS INCOME TAX TOTAL
DISTRIBUTIONS DISTRIBUTIONS EXEMPT DISTRIBUTIONS
FUND (TAX BASIS) (TAX BASIS) INTEREST (TAX BASIS)
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
California Intermediate Tax Free 6% 0% 94% 100%
Colorado Intermediate Tax Free 2 2 96 100
Intermediate Tax Free 8 3 89 100
Minnesota Intermediate Tax Free 6 0 94 100
Minnesota Tax Free 6 3 91 100
Oregon Intermediate Tax Free 6 0 94 100
Tax Free 14 2 84 100
- -------------------------------------------------------------------------------------------------
</TABLE>
62 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
THIS PAGE WAS INTENTIONALLY LEFT BLANK.
63 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
THIS PAGE WAS INTENTIONALLY LEFT BLANK.
64 '99 ANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
FIRST AMERICAN INVESTMENT FUNDS, INC.
BOARD OF DIRECTORS
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. JOHN MURPHY JR.
Director of First American Investment Funds, Inc.
Executive Vice President, U.S. Bancorp
- -------------------------------------------------------------------------------
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 Investment Funds, Inc.
Owner and President of Strauss Management Company
- -------------------------------------------------------------------------------
MS. VIRGINIA STRINGER
Chairperson of First American Investment Funds, Inc.
Owner and President of Strategic Management Resources, Inc.
- -------------------------------------------------------------------------------
<PAGE>
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 involves 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.
FIRST AMERICAN INVESTMENT FUNDS, INC.
1 Freedom Valley Drive
Oaks, Pennsylvania 19456
INVESTMENT ADVISOR AND ADMINISTRATOR
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
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
- --------------------------------------------------------------------------------
FIRST AMERICAN FUNDS Bulk Rate
c/o Fulfillment Agent, American Financial Printing Inc. U.S. Postage
404 Industrial Boulevard, N.E. PAID
Minneapolis, MN 55413 Mpls, MN
Permit No. 26388
In an attempt to reduce shareholder costs and help eliminate duplication, the
funds will try to limit their mailing to one report for each address that lists
one or more shareholders with the same last name. If you would like additional
copies, please call Investor Services at 1-800-637-2548.
11/1999 333-99
