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Previous: ORBITAL SCIENCES CORP /DE/, 8-K, 1999-05-24 |
Next: FIRST AMERICAN INVESTMENT FUNDS INC, N-30D, 1999-05-24 |
FIRST AMERICAN
INVESTMENT FUNDS, INC.
EQUITY
FUNDS
1999 SEMIANNUAL REPORT
[LOGO] FIRST AMERICAN
THE POWER OF DISCIPLINED INVESTING(R)
<PAGE>
FIRST AMERICAN FAMILY OF FUNDS INVESTMENTS FOR EVERY GOAL
- ------------------------ FIRST AMERICAN FUNDS OFFER A FULL RANGE OF
HIGHER RISK/RETURN INVESTMENT STRATEGIES TO HELP YOU CREATE A
POTENTIAL PERSONALIZED, DIVERSIFIED PORTFOLIO. SUPPORTED
- ------------------------ BY EXTENSIVE RESEARCH AND A HIGHLY DEVELOPED
TEAM APPROACH TO INVESTMENT DECISION
SECTOR FUNDS MAKING, FIRST AMERICAN FUNDS CAN HELP BUILD
Health Sciences A WINNING STRATEGY FOR ANY INVESTOR.
Real Estate Securities
Technology
INTERNATIONAL FUNDS
Emerging Markets
International
International Index
SMALL CAP FUNDS
Micro Cap Value
Regional Equity
Small Cap Growth TABLE OF
Small Cap Value CONTENTS
----------------------------------------------
MESSAGE TO SHAREHOLDERS 1
MID CAP FUNDS ----------------------------------------------
Mid Cap Growth LARGE CAP FUNDS
Mid Cap Value ----------------------------------------------
Statements of Net Assets 3
----------------------------------------------
LARGE CAP FUNDS Statements of Operations 16
Balanced ----------------------------------------------
Equity Income Statements of Changes in Net Assets 18
Equity Index ----------------------------------------------
Large Cap Growth Financial Highlights 20
Large Cap Value ----------------------------------------------
MID CAP FUNDS
----------------------------------------------
STRATEGY FUNDS Statements of Net Assets 24
----------------------------------------------
Statements of Operations 27
BOND FUNDS ----------------------------------------------
Statements of Changes in Net Assets 28
----------------------------------------------
TAX FREE BOND FUNDS Financial Highlights 30
----------------------------------------------
SMALL CAP FUNDS
MONEY MARKET FUNDS ----------------------------------------------
Statements of Net Assets 32
- ------------------------ ----------------------------------------------
LOWER RISK/RETURN Statements of Operations 39
POTENTIAL ----------------------------------------------
- ------------------------ Statements of Changes in Net Assets 40
----------------------------------------------
Financial Highlights 42
----------------------------------------------
INTERNATIONAL FUNDS
----------------------------------------------
Statements of Net Assets 46
----------------------------------------------
Statements of Operations 56
----------------------------------------------
Statements of Changes in Net Assets 57
----------------------------------------------
Financial Highlights 58
----------------------------------------------
SECTOR FUNDS
----------------------------------------------
Statements of Net Assets 60
----------------------------------------------
Statements of Operations 64
----------------------------------------------
Statements of Changes in Net Assets 65
----------------------------------------------
Financial Highlights 66
----------------------------------------------
NOTES TO FINANCIAL STATEMENTS 68
----------------------------------------------
NOTICE TO SHAREHOLDERS 84
----------------------------------------------
- -------------------------------------------------------------------------------
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
- -------------------------------------------------------------------------------
<PAGE>
MESSAGE TO SHAREHOLDERS MAY 14, 1999
DEAR SHAREHOLDERS:
On behalf of the entire board of directors and management of First American
Asset Management -- we are pleased to welcome all new fund shareholders and to
thank our long-term shareholders for your continued support.
The economic environment has changed dramatically since September 30, the
date of our last shareholder update. At that time, worried investors drove the
Dow Jones Industrial Average down 20 percent, fueled by fears of an economic
crisis overseas. Some economists even predicted that problems in Asia could
ultimately send the U.S. economy into a recession.
Since then, the Dow has staged a non-stop rally, rising more than 2,000
points to surpass the 10,000 barrier. Many Asian nations have partially
recovered from their financial crises, while the U.S. economy continues to
expand at an unprecedented rate. Thanks to low unemployment, low inflation,
stable interest rates and strong consumer spending, it is business as usual for
our robust economy.
It was also business as usual for domestic large-company growth stocks,
which have reaped the lion's share of the market's gains during recent years.
Since second quarter-end, however, we have seen signs of this trend beginning to
turn around and believe there may be investment opportunities in large-cap value
and small-cap stocks.
In increasingly volatile markets, a well-balanced portfolio may cushion
you against unfavorable developments affecting any particular investment style
or asset class. We believe that successful long-term investing results from
asset allocation among equity, bond and money market funds. A balanced asset
allocation plan can help smooth out market fluctuations to produce more balanced
returns year after year.
As an investor in First American equity funds, you can choose from 17
funds spanning five equity asset classes: large-cap, mid-cap, small-cap,
international and sector funds. First American also offers money market funds,
tax-free bond funds, bond funds and funds of funds to help you create a
personalized, diversified portfolio.
1 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
MESSAGE TO SHAREHOLDERS CONTINUED
In closing, we are pleased to announce that the First American family of
funds recently surpassed $30 billion in total assets -- a significant milestone
which illustrates the broad appeal of our team approach to management and our
commitment to disciplined investment processes.
Again, thank you for your confidence in our fund family. We look forward
to continuing to serve your investment needs.
Sincerely,
/s/ Virginia L. Stringer
VIRGINIA L. STRINGER
Chairman
First American Investment Funds, Inc.
/s/ James S. Doak
JAMES S. DOAK
Senior Managing Director, Equities
First American Asset Management
/s/ Paul A. Dow
PAUL A. DOW
Senior Managing Director, Fixed Income
First American Asset Management
2 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
LARGE CAP FUNDS
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
BALANCED FUND
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS -- 52.6%
BASIC MATERIALS -- 4.4%
Alcoa 48,300 $ 1,989
Bemis 96,900 3,010
E.I. du Pont de Nemours 129,800 7,536
International Paper 112,800 4,759
Praxair 186,300 6,718
------------
24,012
------------
CAPITAL GOODS -- 0.9%
Minnesota Mining & Manufacturing 68,700 4,861
------------
COMMUNICATION SERVICES -- 4.5%
Ameritech 74,300 4,300
AT&T 70,000 5,587
Bell Atlantic 158,300 8,182
Deutsche Telekom, ADR 168,900 6,830
------------
24,899
------------
CONSUMER CYCLICALS -- 2.3%
Federated Department Stores* 159,200 6,388
May Department Stores 163,850 6,411
------------
12,799
------------
CONSUMER STAPLES -- 5.2%
ConAgra 228,300 5,836
General Mills 113,800 8,599
Kimberly Clark 166,800 7,996
Sara Lee 253,000 6,262
------------
28,693
------------
ENERGY -- 4.5%
Elf Aquitaine, ADR 104,100 7,007
Exxon 78,100 5,511
Royal Dutch Petroleum 121,100 6,297
Texaco 100,800 5,720
------------
24,535
------------
FINANCIALS -- 12.8%
Allstate 221,800 8,220
AMBAC 108,500 5,859
American Express 59,700 7,015
BankBoston 116,200 5,033
Chase Manhattan 117,000 9,514
Cigna 93,500 7,836
Household International 127,000 5,794
KeyCorp 138,400 4,195
Mellon Bank 119,300 8,396
Unum 64,900 3,087
Wells Fargo 153,700 5,389
------------
70,338
------------
HEALTH CARE -- 4.7%
American Home Products 149,300 9,742
Pharmacia & Upjohn 174,800 10,903
United Healthcare 102,200 5,378
------------
26,023
------------
BALANCED FUND (CONTINUED)
DESCRIPTION SHARES/PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
TECHNOLOGY -- 9.0%
3Com* 167,700 $ 3,910
Electronic Data Systems 205,800 10,020
First Data 179,600 7,678
IBM 45,800 8,118
Motorola 123,700 9,061
Raytheon, Cl A 86,455 4,993
Seagate Technology* 192,000 5,676
------------
49,456
------------
TRANSPORTATION -- 1.2%
Union Pacific 127,200 6,797
------------
UTILITIES -- 3.1%
Duke Power 85,300 4,660
FPL Group 147,400 7,849
Southern 206,100 4,805
------------
17,314
------------
TOTAL COMMON STOCKS
(Cost $245,194) 289,727
------------
U.S. TREASURY OBLIGATIONS -- 18.3%
U.S. Treasury Bonds
7.125%, 02/15/23 $ 31,000 35,783
6.875%, 08/15/25 15,185 17,168
U.S. Treasury Notes
5.625%, 11/30/00 4,200 4,240
6.250%, 10/31/01 2,500 2,569
6.250%, 02/15/03 8,390 8,692
6.875%, 05/15/06 15,500 16,821
6.500%, 10/15/06 14,430 15,374
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $99,271) 100,647
------------
CORPORATE OBLIGATIONS -- 9.7%
CONSUMER GOODS -- 0.2%
PP&L Resources
7.700%, 10/01/09 500 562
Time Warner
8.875%, 10/01/12 500 602
------------
1,164
------------
FINANCE -- 7.4%
Aon
6.875%, 10/01/99 450 453
Bankamerica
8.375%, 03/15/02 480 511
Bear Stearns
6.560%, 06/20/00 6,780 6,857
Chrysler Financial
5.850%, 05/15/00 10,185 10,234
Cigna
7.400%, 01/15/03 2,825 2,908
Cit Group Holdings
6.200%, 10/20/00 8,250 8,319
Ford Holdings
9.250%, 03/01/00 400 413
3 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
BALANCED FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
GMAC
6.150%, 04/05/07 $ 5,000 $ 4,983
Heller Financial
9.125%, 08/01/99 300 304
Lehman Brothers
6.900%, 03/30/01 4,050 4,096
7.360%, 12/15/03 650 670
Morgan Stanley
8.100%, 06/24/02 500 532
NationsBank
5.375%, 04/15/00 400 399
------------
40,679
------------
MANUFACTURING -- 1.0%
Boeing
7.250%, 06/15/25 5,000 5,198
8.750%, 09/15/31 500 613
------------
5,811
------------
TECHNOLOGY -- 0.2%
GTE South
6.125%, 06/15/07 400 401
MCI Communications
7.125%, 06/15/27 500 531
------------
932
------------
TRANSPORTATION -- 0.9%
Hertz
6.250%, 03/15/09 5,000 4,900
------------
TOTAL CORPORATE OBLIGATIONS
(Cost $53,110) 53,486
------------
PRIVATE MORTGAGE-BACKED SECURITIES -- 2.5%
FIXED RATE -- 2.5%
Asset Securitization 1996-D6 A1B
6.880%, 11/13/26 5,670 5,803
CMC Securities 1993-D D2
6.400%, 07/25/23 89 89
General Electric Capital Mortgage
1994-11 A1
6.500%, 03/25/24 457 460
General Electric Capital Mortgage
1994-17 A6
7.000%, 05/25/24 2,675 2,721
GMAC Commercial Mortgage 1997-C2 C
6.910%, 12/15/07 5,000 4,877
------------
13,950
------------
TOTAL PRIVATE MORTGAGE-BACKED SECURITIES
(Cost $14,019) 13,950
------------
ASSET-BACKED SECURITIES -- 8.4%
AUTOS -- 1.8%
Union Acceptance 1998-B A5
6.020%, 01/09/06 10,000 10,047
------------
BALANCED FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
CREDIT CARDS -- 3.7%
Circuit City Credit Card Master Trust
1995-1 A
6.375%, 08/15/05 $ 8,600 $ 8,707
Fingerhut Master Trust 1998-1 B
6.290%, 02/15/05 11,411 11,432
------------
20,139
------------
HOME EQUITY -- 2.9%
Drexel Burnham Lambert Trust S 2
9.000%, 08/01/18 177 177
Merrill Lynch Mortgage Investors
1995-C3 A3
7.061%, 12/26/25 (A) 12,600 13,159
Prudential Home Loan Mortgage
1992-36 A8
6.500%, 11/25/99 1,766 1,765
Residential Fund Mortgage
1992-S26 A17
8.500%, 06/25/09 938 938
------------
16,039
------------
TOTAL ASSET-BACKED SECURITIES
(Cost $45,810) 46,225
------------
U.S. GOVERNMENT AGENCY MORTGAGE-
BACKED OBLIGATIONS -- 6.2%
FHLMC
5.940%, 09/21/99 1,000 1,005
6.500%, 01/01/01 280 283
6.000%, 11/15/08 2,700 2,669
6.500%, 09/01/12 397 402
8.000%, 11/01/24 467 486
6.500%, 09/01/25 299 299
FNMA
5.560%, 07/24/00 15,955 16,038
6.000%, 03/01/03 216 216
FNMA
6.845%, 04/01/18 (A) 279 284
GNMA
7.500%, 09/15/27 500 515
6.000%, 02/15/29 5,000 4,856
7.000%, 04/15/29 7,000 7,101
------------
TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-
BACKED OBLIGATIONS
(Cost $33,999) 34,154
------------
U.S. GOVERNMENT AGENCY
BACKED OBLIGATIONS -- 0.0%
Isreal Government Trust Certificate
Series 1C
9.250%, 11/15/01 (B) 196,611 202
------------
TOTAL U.S. GOVERNMENT AGENCY
BACKED OBLIGATIONS
(Cost $196) 202
------------
4 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
LARGE CAP FUNDS
BALANCED FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
RELATED PARTY MONEY MARKET FUND -- 1.7%
First American Prime Obligations
Fund (C) 9,293,517 $ 9,294
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $9,294) 9,294
------------
WARRANT -- 0.0%
U.S. Surgical* 4 --
------------
TOTAL WARRANT
(Cost $0) --
------------
TOTAL INVESTMENTS -- 99.4%
(Cost $500,893) 547,685
------------
OTHER ASSETS AND LIABILITIES, NET -- 0.6% (D) 3,305
------------
NET ASSETS:
Portfolio Capital--Class-A
($.0001 par value--2 billion authorized)
based on 5,640,833 outstanding shares 65,589
Portfolio Capital--Class-B
($.0001 par value--2 billion authorized)
based on 4,636,003 outstanding shares 63,539
Portfolio Capital--Class-C
($.0001 par value--2 billion authorized)
based on 14,027 outstanding shares 189
Portfolio Capital--Class-Y
($.0001 par value--2 billion authorized)
based on 30,505,236 outstanding shares 346,018
Undistributed net investment income 330
Accumulated net realized gain on investments 28,533
Net unrealized appreciation of investments 46,792
------------
TOTAL NET ASSETS -- 100.0% $ 550,990
------------
Net asset value and redemption
price per share--Class-A $ 13.49
Maximum sales charge of 5.25% (E) 0.75
------------
Offering price per share--Class-A $ 14.24
------------
Net asset value and offering
price per share--Class-B (F) $ 13.42
------------
Net asset value per share--Class-C (G) $ 13.48
Maximum sales charge of 1.00% (H) 0.14
------------
Offering price per share--Class-C $ 13.62
------------
Net asset value, offering price, and redemption
price per share--Class-Y $ 13.52
------------
BALANCED FUND (CONCLUDED)
DESCRIPTION
- --------------------------------------------------------------------------------
* Non-income producing security
(A)Variable Rate Security--the rate reported on the Statement of Net Assets is
the rate in effect as of March 31,1999.
(B)Security is guaranteed by the United States of America.
(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)Other assets and liabilities representing greater than five percent of total
net assets include the following (000):
Cash collateral received for securities on loan $ 142,314
Payable upon return of securities on loan $(142,314)
(E)The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 5.25%.
(F)Class-B has a contingent deferred sales charge. For a description of a
possible redemption charge, see the notes to the financial statements.
(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%.
ADR--American Depositary Receipt
AMBAC--American Municipal Bond Assurance Company
Cl--Class
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
GMAC--General Motors Acceptance Corporation
GNMA--Government National Mortgage Association
The accompanying notes are an integral part of the financial statements.
5 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
EQUITY INCOME FUND
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS -- 79.7%
BASIC MATERIALS -- 5.2%
E.I. du Pont de Nemours 98,600 $ 5,725
Ecolab 198,000 7,029
Great Northern Iron Ore Properties 40,200 2,412
Lyondell Chemical 142,168 1,946
Monsanto Aces 89,000 4,139
------------
21,251
------------
CAPITAL GOODS -- 3.7%
Emerson Electric 75,000 3,970
General Electric 68,000 7,522
Minnesota Mining & Manufacturing 53,000 3,750
------------
15,242
------------
COMMUNICATION SERVICES -- 7.7%
Ameritech 132,000 7,639
AT&T 148,000 11,812
Deutsche Telekom, ADR 183,000 7,400
Sprint 50,000 4,906
------------
31,757
------------
CONSUMER CYCLICALS -- 7.3%
Ford Motor 170,000 9,647
Intimate Brands 245,000 11,791
J.C. Penney 110,300 4,467
Masco 139,000 3,927
------------
29,832
------------
CONSUMER STAPLES -- 9.7%
Colgate-Palmolive 50,000 4,600
ConAgra 101,772 2,602
Kimberly Clark 121,000 5,800
Newell Rubbermaid 130,000 6,175
PepsiCo 101,000 3,958
Philip Morris 180,000 6,334
Sara Lee 155,400 3,846
ServiceMaster 318,000 6,459
------------
39,774
------------
ENERGY -- 10.2%
BP Amoco Plc-Spons, ADR 90,648 9,150
Chevron 100,000 8,844
Exxon 98,000 6,915
Mobil 86,600 7,621
Royal Dutch Petroleum 183,000 9,516
------------
42,046
------------
FINANCIALS -- 18.8%
American Express 88,300 10,375
Associates First Capital 143,608 6,462
Bank of New York 200,000 7,188
BankAmerica 77,424 5,468
Crescent Real Estate Equity 137,600 2,958
First Union 111,224 5,944
FNMA 45,000 3,116
EQUITY INCOME FUND (CONTINUED)
DESCRIPTION SHARES/PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Healthcare Realty Trust 178,400 $ 3,390
Household International 110,397 5,037
IPC Holdings 131,300 2,610
Manufactured Home Communities 176,100 4,226
Meditrust 60,080 747
Mellon Bank 98,000 6,897
Simon Property Group 184,000 5,049
Weeks 144,400 4,124
XL Capital, Cl A 56,182 3,413
------------
77,004
------------
HEALTH CARE -- 10.5%
American Home Products 108,000 7,047
Johnson & Johnson 75,800 7,102
Merck 55,400 4,442
Pfizer 47,400 6,577
Pharmacia & Upjohn 88,000 5,489
Schering Plough 148,000 8,186
SmithKline Beecham, ADR 58,000 4,147
------------
42,990
------------
TRANSPORTATION -- 1.9%
Knightsbridge Tankers Limited 85,700 1,478
Union Pacific 116,700 6,236
------------
7,714
------------
UTILITIES -- 4.7%
Cinergy 141,300 3,886
Enron 56,700 3,643
FPL Group 64,300 3,424
Reliant Energy 71,200 1,856
Texas Utilities 161,900 6,749
------------
19,558
------------
TOTAL COMMON STOCKS
(Cost $191,544) 327,168
------------
CONVERTIBLE BONDS -- 7.2%
Amazon.com, 6.4080 shares
4.750%, 02/01/09 (A) $ 2,000 2,544
Athena Neuroscience, 14.0758 shares
4.750%, 11/15/04 4,925 6,033
Centocor, 20.300 shares
4.750%, 02/15/05 3,710 3,621
Healthsouth, 27.3000 shares
3.250%, 04/01/03 4,600 3,739
Hometown Buffet, 73.2600 shares
7.000%, 12/01/02 4,000 4,040
Medical Care International,
14.5815 shares
6.750%, 10/01/06 (A) 6,800 5,748
Tenet Healthcare, 25.9403 shares
6.000%, 12/01/05 4,670 3,951
------------
TOTAL CONVERTIBLE BONDS
(Cost $29,689) 29,676
------------
6 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
LARGE CAP FUNDS
EQUITY INCOME FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
PREFERRED CONVERTIBLE STOCKS -- 5.8%
Aetna 45,000 $ 3,403
Airtouch Communications 47,000 6,322
Houston Industries 70,000 8,435
Union Pacific Capital Trust (A) 110,000 5,486
------------
TOTAL PREFERRED CONVERTIBLE STOCKS
(Cost $14,928) 23,646
------------
RELATED PARTY MONEY MARKET FUND -- 6.9%
First American Prime Obligations
Fund (B) 28,558,115 28,558
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $28,558) 28,558
------------
TOTAL INVESTMENTS -- 99.6%
(Cost $264,719) 409,048
------------
OTHER ASSETS AND LIABILITIES, NET -- 0.4% (C) 1,498
------------
NET ASSETS:
Portfolio Capital--Class-A
($.0001 par value--2 billion authorized)
based on 911,912 outstanding shares 13,251
Portfolio Capital--Class-B
($.0001 par value--2 billion authorized)
based on 645,451 outstanding shares 8,698
Portfolio Capital--Class-C
($.0001 par value--2 billion authorized)
based on 14,972 outstanding shares 249
Portfolio Capital--Class-Y
($.0001 par value--2 billion authorized)
based on 22,689,427 outstanding shares 213,536
Undistributed net investment income 259
Accumulated net realized gain on investments 30,224
Net unrealized appreciation of investments 144,329
------------
TOTAL NET ASSETS -- 100.0% $ 410,546
------------
Net asset value and redemption
price per share--Class-A $ 16.87
Maximum sales charge of 5.25% (D) 0.93
------------
Offering price per share--Class-A $ 17.80
------------
Net asset value and offering
price per share--Class-B (E) $ 16.83
------------
Net asset value per share--Class-C (F) $ 16.87
Maximum sales charge of 1.00% (G) 0.17
------------
Offering price per share--Class-C $ 17.04
------------
Net asset value, offering price, and
redemption price per share--Class-Y $ 16.93
------------
EQUITY INCOME FUND (CONCLUDED)
DESCRIPTION
- --------------------------------------------------------------------------------
*Non-income producing security
(A)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".
(B)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.
(C)Other assets and liabilities representing greater than five percent of total
net assets include the following (000):
Cash collateral received for securities on loan $ 83,793
Payable upon return of securities on loan $(83,793)
(D)The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 5.25%.
(E)Class-B has a contingent deferred sales charge. For a description of a
possible redemption charge, see the notes to the financial statements.
(F) Class-C has a contingent deferred sales charge. For a description of a
possible redemption charge, see the notes to the financial statements.
(G)The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%.
ADR--American Depositary Receipt
Cl--Class
FNMA--Federal National Mortgage Association
PLC--Public Liability Company
The accompanying notes are an integral part of the financial statements.
7 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
EQUITY INDEX FUND
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS -- 97.7%
BASIC MATERIALS -- 3.0%
Air Products & Chemicals 32,400 $ 1,110
Alcan Aluminum 31,900 823
Alcoa 51,400 2,117
Allegheny Teledyne 27,500 521
Archer Daniels Midland 83,100 1,221
Asarco 5,600 77
B.F. Goodrich 10,400 357
Barrick Gold 52,300 892
Battle Mountain Gold 32,200 89
Bemis 7,300 227
Bethlehem Steel* 18,200 150
Boise Cascade 7,900 255
Champion International 13,400 550
Cyprus AMAX Minerals 12,700 154
Dow Chemical 31,000 2,889
E.I. du Pont de Nemours 157,800 9,162
Eastman Chemical 11,100 467
Ecolab 18,100 643
Engelhard 20,100 340
FMC* 4,600 227
Freeport-McMoran Copper & Gold, Cl B 23,200 252
Georgia Pacific 12,300 913
Great Lakes Chemical 8,300 305
Hercules 14,100 356
Homestake Mining 33,500 289
Inco 23,300 310
International Flavors & Fragrances 14,900 560
International Paper 43,100 1,818
Louisiana Pacific 15,200 283
Mead 14,400 443
Monsanto 87,800 4,033
Morton International 17,000 625
Nalco Chemical 9,200 244
Newmont Mining 23,400 409
Nucor 12,300 542
Phelps Dodge 8,100 399
Pioneer Hi-Bred International 33,900 1,275
Placer Dome Group 35,000 392
Potlatch 4,100 139
PPG Industries 24,800 1,271
Praxair 22,100 797
Reynolds Metals 9,000 435
Rohm & Haas 23,300 782
Sigma Aldrich 14,100 412
Temple Inland 7,800 489
Union Camp 9,700 651
Union Carbide 18,600 840
USX-U.S. Steel Group 12,400 291
W.R. Grace* 10,300 125
Westvaco 14,200 298
Weyerhaeuser 27,900 1,548
Willamette Industries 15,600 589
Worthington Industries 13,000 153
------------
44,539
------------
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
CAPITAL GOODS -- 7.9%
Aeroquip-Vickers 3,900 $ 224
Allied Signal 78,500 3,861
AMP 30,700 1,648
Avery Dennison 16,300 937
Ball 4,300 202
Berkshire Hathaway, Cl A* 34 2,474
Boeing 140,000 4,777
Briggs & Stratton 3,300 163
Browning Ferris Industries 24,400 941
Case Equipment 10,200 259
Caterpillar 50,300 2,311
Cooper Industries 14,500 618
Corning 32,400 1,944
Crane 9,600 232
Crown Cork & Seal 17,100 488
Cummins Engine 5,900 210
Danaher 18,700 977
Deere 33,400 1,290
Dover 31,300 1,029
Eaton 10,000 715
Emerson Electric 61,700 3,266
Fluor 10,600 286
Foster Wheeler 5,700 69
General Dynamics 17,800 1,144
General Electric 459,200 50,799
Harnischfeger Industries 6,700 38
Honeywell 17,600 1,334
Illinois Tool Works 35,000 2,166
Ingersoll Rand 23,000 1,141
Johnson Controls 11,900 742
Lockheed Martin 55,000 2,073
McDermott International 8,300 210
Milacron 5,400 85
Millipore 6,200 150
Minnesota Mining & Manufacturing 56,200 3,976
Moore 12,400 122
Nacco Industries, Cl A 1,100 81
National Service Industries 5,800 198
Navistar International* 9,400 378
Northrop 9,600 575
Owens-Illinois* 21,800 545
Paccar 10,900 449
Pall 17,400 288
Parker Hannifin 15,300 524
Pitney Bowes 38,200 2,435
Raychem 11,100 250
Rockwell International 26,800 1,137
Sealed Air* 11,700 575
Solectron* 33,000 1,603
Tenneco 23,800 665
Textron 22,200 1,718
Thermo Electron* 22,300 302
Thomas & Betts 8,000 300
Timken 8,700 141
Tyco International 90,300 6,479
United Technologies 31,600 4,280
Waste Management 80,500 3,572
------------
119,396
------------
8 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
LARGE CAP FUNDS
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMUNICATION SERVICES -- 8.3%
Airtouch Communications* 80,200 $ 7,749
Alltel 38,500 2,401
Ameritech 154,600 8,947
AT&T 311,587 24,869
Bell Atlantic 217,500 11,242
BellSouth 274,000 10,977
Frontier 24,000 1,245
GTE 135,200 8,180
MCI WorldCom* 256,900 22,752
Nextel Communications, Cl A* 40,300 1,476
SBC Communications 274,100 12,917
Sprint 60,400 5,927
Sprint (PCS Group)* 58,200 2,579
US West 70,400 3,876
------------
125,137
------------
CONSUMER CYCLICALS -- 9.2%
American Greetings, Cl A 9,900 251
Armstrong World Industries 5,600 253
Autozone* 21,400 650
Black & Decker 12,300 682
Brunswick 13,500 257
Carnival 83,400 4,050
Cendant* 119,500 1,882
Centex 8,300 277
Circuit City Stores 14,100 1,080
Consolidated Stores* 15,300 464
Cooper, Tire & Rubber 10,600 195
Costco* 30,300 2,774
Dana 23,200 882
Dayton Hudson 61,700 4,111
Dillards, Cl A 15,000 381
Dollar General 25,900 881
Dow Jones 13,200 623
Dun & Bradstreet 23,400 834
Federated Department Stores* 28,700 1,152
Fleetwood Enterprises 4,900 140
Ford Motor 169,600 9,625
Fort James 30,900 979
Fortune Brands 24,000 928
Fruit of the Loom, Cl A* 10,100 105
Gannett 39,500 2,488
Gap 81,200 5,466
General Motors 91,700 7,966
Genuine Parts 25,200 726
Goodyear Tire & Rubber 21,800 1,086
H & R Block 14,100 668
Harcourt General 10,000 443
Harrah's Entertainment* 17,700 337
Hasbro 27,450 794
Hilton Hotels 36,500 513
Home Depot 219,000 13,633
Ims Health 44,800 1,484
Interpublic Group 19,500 1,519
ITT Industries 14,500 513
J.C. Penney 35,600 1,442
Jostens 5,000 106
Kaufman & Broad Home 5,600 126
Kmart* 69,100 1,162
Knight-Ridder 11,000 550
Kohls* 22,200 1,573
Laidlaw 46,200 269
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Limited 31,900 $ 1,264
Liz Claiborne 9,000 294
Lowe's 49,400 2,989
Marriott International, Cl A 35,100 1,180
Masco 47,500 1,342
Mattel 40,300 1,002
May Department Stores 49,050 1,919
Maytag 12,600 761
McGraw-Hill 27,600 1,504
Meredith 7,300 229
Mirage Resorts* 25,200 535
New York Times, Cl A 25,600 730
Nike, Cl B 40,100 2,313
Nordstrom 20,900 854
Omnicom Group 23,600 1,887
Owens Corning 7,600 242
Pep Boys-Manny, Moe & Jack 8,900 136
Pulte 6,000 125
Reebok International* 7,900 125
Russell 5,100 103
Sears Roebuck 53,700 2,427
Service International 36,100 514
Sherwin Williams 24,100 678
Snap-On Tools 8,300 241
Springs Industries, Cl A 2,500 68
Stanley Works 12,400 318
Staples* 65,550 2,155
Tandy 13,900 887
Times Mirror, Cl A 11,200 606
TJX 45,100 1,533
Toys `R' Us* 36,600 689
Tribune 16,600 1,086
TRW 16,800 764
V.F 16,800 793
Wal-Mart Stores 315,700 29,104
Whirlpool 10,700 582
------------
138,299
------------
CONSUMER STAPLES -- 13.1%
Adolph Coors, Cl B 5,100 275
Alberto-Culver, Cl B 7,700 180
Albertson's 34,400 1,868
American Stores 38,500 1,271
Anheuser Busch 67,000 5,105
Avon Products 36,800 1,732
Bestfoods 40,000 1,880
Brown Forman, Cl B 9,600 553
Campbell Soup 62,800 2,555
Cardinal Health 28,100 1,855
CBS* 99,000 4,053
Clear Channel Communications* 36,900 2,475
Clorox 14,500 1,699
Coca-Cola 345,400 21,199
Coca-Cola Enterprises 54,900 1,661
Colgate-Palmolive 41,000 3,772
Comcast, Cl A 51,700 3,254
ConAgra 68,600 1,754
CVS 54,600 2,594
Darden Restaurants 19,500 402
Deluxe 11,300 329
Fred Meyer* 21,700 1,278
General Mills 21,400 1,617
Gillette 155,500 9,243
9 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Great Atlantic & Pacific Tea 5,400 $ 162
H.J. Heinz 50,700 2,402
Hershey Foods 20,100 1,126
Kellogg 56,800 1,921
Kimberly Clark 75,900 3,638
King World Productions* 10,300 315
Kroger* 35,900 2,150
Longs Drug Stores 5,500 167
McDonald's 189,600 8,591
McKesson HBOC 24,124 1,592
MediaOne Group* 85,000 5,398
Newell Rubbermaid 39,354 1,869
PepsiCo 205,600 8,057
Philip Morris 341,200 12,006
Procter & Gamble 185,900 18,207
Quaker Oats 19,100 1,195
R.R. Donnelley & Sons 19,000 612
Ralston-Ralston Purina Group 43,800 1,169
Rite Aid 36,200 905
RJR Nabisco 45,500 1,138
Safeway* 68,100 3,494
Sara Lee 128,000 3,168
Seagram 55,200 2,760
SUPERVALU 16,900 349
Sysco 46,800 1,231
Time Warner 171,900 12,216
Tricon Global Restaurants* 21,400 1,503
Tupperware 8,100 146
Unilever 89,700 5,959
UST 26,100 682
Viacom, Cl B* 48,699 4,088
Walgreen 139,800 3,949
Walt Disney 287,100 8,936
Wendy's International 17,400 495
William Wrigley Jr 16,300 1,474
Winn Dixie Stores 20,800 777
------------
196,451
------------
ENERGY -- 5.5%
Amerada Hess 12,700 639
Anadarko Petroleum 16,900 638
Apache 13,700 357
Ashland Oil 10,700 438
Atlantic Richfield 45,000 3,285
Baker Hughes 45,800 1,114
Burlington Resources 24,800 990
Chevron 91,400 8,083
Exxon 340,700 24,041
Halliburton 61,600 2,372
Helmerich & Payne 7,000 159
Kerr-McGee 12,098 397
Mobil 109,300 9,618
Occidental Petroleum 48,500 873
Phillips Petroleum 35,700 1,687
Rowan* 11,700 148
Royal Dutch Petroleum 300,500 15,626
Schlumberger 76,500 4,604
Sunoco 13,100 472
Texaco 74,900 4,251
Union Pacific Resources Group 35,200 418
Unocal 33,800 1,244
USX-Marathon Group 43,100 1,185
------------
82,639
------------
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
FINANCIALS -- 15.6%
Allstate 115,000 $ 4,262
American Express 63,400 7,450
American General 35,300 2,489
American International Group 173,100 20,880
Aon 23,800 1,505
Associates First Capital 101,300 4,559
Bank of New York 106,600 3,831
Bank One 164,100 9,036
BankAmerica 242,500 17,127
BankBoston 41,300 1,789
Bankers Trust New York 13,400 1,183
BB&T 41,200 1,491
Bear Stearns 16,590 741
Capital One Financial 9,200 1,389
Charles Schwab 56,200 5,402
Chase Manhattan 118,500 9,636
Chubb 22,800 1,335
Cigna 28,900 2,422
Cincinnati Financial 23,400 853
Citigroup 318,400 20,338
Comerica 21,800 1,361
Conseco 44,100 1,362
Countrywide Credit Industries 15,700 589
FHLMC 95,100 5,433
Fifth Third Bancorp 37,400 2,466
First Union 138,800 7,417
Firstar 32,200 2,882
Fleet Financial Group 79,600 2,995
FNMA 145,300 10,062
Franklin Resources 35,500 998
Golden West Financial 8,000 764
Hartford Financial Services Group 32,700 1,858
Household International 67,700 3,089
Huntington Bancshares 29,600 916
J.P. Morgan 24,500 3,023
Jefferson-Pilot 14,900 1,009
KeyCorp 63,800 1,934
Lehman Brothers Holdings 16,300 974
Lincoln National 14,200 1,404
Lowe's 15,900 1,187
Marsh & McLennan 36,100 2,678
MBIA 13,900 806
MBNA 112,400 2,684
Mellon Bank 36,600 2,576
Mercantile Bancorp 22,100 1,050
Merrill Lynch 49,700 4,395
MGIC Investment 15,300 536
Morgan Stanley Dean Witter 81,000 8,095
National City 46,300 3,073
Northern Trust 15,600 1,385
PNC Bank 42,200 2,345
Progressive 10,200 1,464
Provident 19,000 657
Providian Financial 19,800 2,178
Regions Financial 31,000 1,073
Republic New York 15,000 692
Safeco 19,100 772
SLM Holding 23,200 969
St. Paul 33,000 1,025
State Street 22,500 1,849
Summit Bancorp 24,300 948
Suntrust Banks 44,500 2,770
10 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
LARGE CAP FUNDS
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Synovus Financial 37,500 $ 766
Torchmark 19,700 623
Transamerica 17,400 1,235
U.S. Bancorp 101,700 3,464
Union Planters 19,100 839
Unum 19,400 923
Wachovia 28,400 2,306
Washington Mutual 83,100 3,397
Wells Fargo 226,600 7,945
------------
234,959
------------
HEALTH CARE -- 11.7%
Abbott Laboratories 212,700 9,957
Aetna 20,000 1,660
Allergan 9,200 808
Alza, Cl A* 12,200 467
American Home Products 184,700 12,052
Amgen* 71,400 5,346
Bausch & Lomb 7,900 514
Baxter International 40,100 2,647
Becton Dickinson 34,600 1,326
Biomet 15,700 658
Boston Scientific* 55,100 2,235
Bristol-Myers Squibb 278,400 17,905
C.R. Bard 7,500 378
Columbia/HCA Healthcare 90,500 1,714
Eli Lilly 154,100 13,079
Guidant 42,200 2,553
HCR Manor Care* 15,500 354
HEALTHSOUTH* 59,300 615
Humana* 23,500 405
Johnson & Johnson 188,400 17,651
Mallinckrodt 10,000 266
Medtronic 68,700 4,929
Merck 333,800 26,767
Pfizer 181,900 25,239
Pharmacia & Upjohn 71,200 4,441
Schering Plough 205,900 11,389
St. Jude Medical* 11,800 288
Tenet Healthcare* 43,400 822
United Healthcare 26,100 1,374
Warner Lambert 115,100 7,618
------------
175,457
------------
TECHNOLOGY -- 19.9%
3Com* 50,300 1,173
Adobe Systems 9,200 522
Advanced Micro Devices* 20,300 315
America Online* 128,400 18,746
Andrew* 12,100 149
Apple Computer* 18,900 679
Applied Materials* 51,800 3,195
Ascend Communications* 30,400 2,544
Autodesk 6,500 263
Automatic Data Processing 84,700 3,504
BMC Software* 30,200 1,119
Cabletron Systems* 23,100 189
Ceridian* 20,000 731
Cisco Systems* 221,300 24,246
Compaq Computer 238,200 7,548
Computer Associates International 75,400 2,681
Computer Sciences* 22,200 1,225
Compuware* 51,600 1,232
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Data General* 6,900 $ 70
Dell Computer* 357,000 14,592
Eastman Kodak 45,400 2,900
EG&G 6,300 166
Electronic Data Systems 69,100 3,364
EMC* 70,300 8,981
Equifax 20,700 712
First Data 62,000 2,651
Gateway 2000* 21,900 1,502
General Instrument* 23,500 712
Harris 11,200 321
Hewlett Packard 145,300 9,853
IBM 130,800 23,184
IKON Office Solutions 19,000 243
Intel 233,600 27,769
KLA Instruments* 12,200 592
LSI Logic* 19,800 618
Lucent Technologies 184,300 19,858
Micron Technology* 29,900 1,443
Microsoft* 698,800 62,630
Momentum Business Applications* 654 6
Motorola 84,100 6,160
National Semiconductor* 23,300 217
Northern Telecom 91,400 5,678
Novell* 49,300 1,242
Oracle Systems* 204,299 5,388
Parametric Technology* 38,100 752
Paychex 22,900 1,086
Peoplesoft* 32,700 478
Perkin Elmer 7,000 679
Polaroid 6,100 122
Raytheon Company, Cl B 47,200 2,767
Scientific-Atlanta 10,500 286
Seagate Technology* 34,400 1,017
Shared Medical Systems 3,700 206
Silicon Graphics* 26,300 439
Sun Microsystems* 53,300 6,666
Tektronix 6,600 167
Tellabs* 27,200 2,659
Texas Instruments 54,600 5,419
Unisys* 35,800 991
W.W. Grainger 13,300 573
Xerox 92,000 4,911
------------
300,131
------------
TRANSPORTATION -- 0.9%
AMR* 25,600 1,499
Burlington Northern Santa Fe 65,700 2,160
CSX 30,600 1,191
Delta Air Lines 20,000 1,390
Federal Express* 20,700 1,921
Norfolk Southern 53,100 1,401
Ryder System 10,000 276
Southwest Airlines 47,100 1,425
U.S. Air Group* 12,200 596
Union Pacific 34,700 1,854
------------
13,713
------------
UTILITIES -- 2.6%
AES* 25,300 942
Ameren 19,200 695
American Electric Power 26,800 1,064
Baltimore Gas & Electric 20,900 530
11 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION SHARES/PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Carolina Power & Light 21,200 $ 802
Central & South West 29,800 698
Cinergy 22,200 611
Coastal 29,800 983
Columbia Gas Systems 11,700 611
Consolidated Edison 32,700 1,482
Consolidated Natural Gas 13,400 652
Dominion Resources of Virginia 27,400 1,012
DTE Energy 20,300 780
Duke Power 50,700 2,769
Eastern Enterprises 3,200 116
Edison International 49,400 1,099
Enron 46,300 2,975
Entergy 34,600 952
FirstEnergy 33,200 928
FPL Group 25,300 1,347
GPU 17,900 668
New Century Energies 16,000 545
Niagara Mohawk Holdings* 26,300 353
Nicor 6,700 241
Northern States Power 21,400 496
ONEOK 4,400 109
Pacificorp 41,700 719
PECO Energy 31,400 1,452
Peoples Energy 5,000 162
PG&E 53,600 1,665
PP&L Resources 21,200 525
Public Service Enterprise Group 32,000 1,222
Reliant Energy 39,900 1,040
Sempra Energy 33,599 645
Sonat 15,400 462
Southern 97,700 2,278
Texas Utilities 39,600 1,651
Unicom 30,400 1,112
Williams 59,900 2,366
------------
38,759
------------
TOTAL COMMON STOCKS
(Cost $856,847) 1,469,480
------------
U.S. TREASURY OBLIGATION -- 0.3%
U.S. Treasury Bill
4.439%, 06/17/99 (A) $ 5,000 4,953
------------
TOTAL U.S. TREASURY OBLIGATION
(Cost $4,953) 4,953
------------
WARRANT -- 0.0%
U.S. Surgical* 13 --
------------
TOTAL WARRANT
(Cost $0) --
------------
RELATED PARTY MONEY MARKET FUND -- 0.8%
First American Prime Obligations
Fund (B) 11,619,020 11,619
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $11,619) 11,619
------------
TOTAL INVESTMENTS -- 98.8%
(Cost $873,419) 1,486,052
------------
OTHER ASSETS AND LIABILITIES, NET -- 1.2% (C) 18,727
------------
EQUITY INDEX FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital--Class-A
($.0001 par value--2 billion authorized)
based on 3,510,008 outstanding shares $ 73,417
Portfolio Capital--Class-B
($.0001 par value--2 billion authorized)
based on 3,056,630 outstanding shares 62,130
Portfolio Capital--Class-C
($.0001 par value--2 billion authorized)
based on 162,678 outstanding shares 4,133
Portfolio Capital--Class-Y
($.0001 par value--2 billion authorized)
based on 52,052,757 outstanding shares 740,261
Undistributed net investment income 301
Accumulated net realized gain on investments 12,078
Net unrealized appreciation of investments
and open futures contracts 612,459
------------
TOTAL NET ASSETS -- 100.0% $ 1,504,779
------------
Net asset value per share--Class-A $ 25.61
Maximum sales charge of 5.25% (D) 1.42
------------
Offering price per share--Class-A $ 27.03
------------
Net asset value and offering
price per share--Class-B (E) $ 25.46
------------
Net asset value per share--Class-C (F) $ 25.60
Maximum sales charge of 1.00% (G) 0.26
------------
Offering price per share--Class-C $ 25.86
------------
Net asset value, offering price, and
redemption price per share--Class-Y $ 25.61
------------
* Non-income producing security
(A)Security has been deposited as initial margin on open futures contracts.
Yield shown is effective yield at date of purchase.
(B)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.
(C)Other assets and liabilities representing greater than five percent of total
net assets include the following (000):
Cash collateral received for securities on loan $ 370,308
Payable upon return of securities on loan $(370,308)
(D)The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 5.25%.
(E)Class-B has a contingent deferred sales charge. For a description of a
possible redemption charge, see the notes to the financial statements.
(F)Class-C has a contingent deferred sales charge. For a description of a
possible redemption charge, see the notes to the financial statements.
(G)The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%.
ADR--American Depositary Receipt
Cl--Class
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
PLC--Public Liability Company
The accompanying notes are an integral part of the financial statements.
12 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
LARGE CAP FUNDS
LARGE CAP GROWTH FUND
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS -- 98.3%
BASIC MATERIALS -- 6.1%
E.I. du Pont de Nemours 309,000 $ 17,941
Ecolab 440,000 15,620
Monsanto 609,000 27,976
------------
61,537
------------
CAPITAL GOODS -- 2.6%
General Electric 237,000 26,218
------------
COMMUNICATION SERVICES -- 10.6%
AT&T 211,000 16,840
MCI WorldCom* 413,000 36,576
Nextel Communications, Cl A* 505,000 18,496
Nokia, ADR 222,000 34,576
------------
106,488
------------
CONSUMER CYCLICALS -- 5.5%
Gap 150,000 10,097
Home Depot 161,000 10,022
Masco 507,000 14,323
Wal-Mart Stores 230,000 21,203
------------
55,645
------------
CONSUMER STAPLES -- 13.5%
Cardinal Health 130,000 8,580
Coca-Cola 293,000 17,983
Cox Communications* 247,000 18,679
Kimberly Clark 225,000 10,786
McDonald's 140,000 6,344
Mediaone Group* 168,000 10,668
PepsiCo 276,000 10,816
Philip Morris 312,000 10,978
Procter & Gamble 209,000 20,469
Sara Lee 388,000 9,603
ServiceMaster 568,500 11,548
------------
136,454
------------
ENERGY -- 3.7%
Exxon 210,340 14,842
Mobil 101,000 8,888
Schlumberger 223,200 13,434
------------
37,164
------------
FINANCIALS -- 12.3%
American Express 163,400 19,200
American International Group 90,000 10,856
Associates First Capital 248,000 11,160
Bank of New York 351,000 12,614
FNMA 416,700 28,856
Mellon Bank 240,000 16,890
Morgan Stanley Dean Witter 132,550 13,247
Progressive 76,000 10,906
------------
123,729
------------
LARGE CAP GROWTH FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
HEALTH CARE -- 18.5%
Biogen* 51,000 $ 5,830
Bristol-Myers Squibb 136,000 8,747
Guidant 173,000 10,467
Johnson & Johnson 242,150 22,686
Medtronic 287,000 20,592
Merck 324,000 25,981
Pfizer 260,000 36,075
Pharmacia & Upjohn 181,000 11,290
Schering Plough 161,000 8,905
SmithKline Beecham, ADR 215,000 15,373
United Healthcare 383,000 20,155
------------
186,101
------------
TECHNOLOGY -- 21.8%
America Online* 136,000 19,856
Ascend Communications* 106,000 8,871
Cisco Systems* 313,000 34,293
Dell Computer* 240,000 9,810
Electronic Data Systems 370,000 18,014
EMC* 192,000 24,528
IBM 51,000 9,040
Lucent Technologies 165,000 17,779
Microsoft* 458,000 41,048
Sun Microsystems* 91,000 11,381
Sungard Data Systems* 267,700 10,708
Tellabs* 151,000 14,760
------------
220,088
------------
TRANSPORTATION -- 1.1%
Southwest Airlines 360,000 10,890
------------
UTILITIES -- 2.6%
Enron 411,000 26,407
------------
TOTAL COMMON STOCKS
(Cost $592,446) 990,721
------------
PREFERRED CONVERTIBLE STOCKS -- 1.0%
Airtouch Communications, Cl C 76,000 10,222
------------
TOTAL PREFERRED CONVERTIBLE STOCKS
(Cost $4,257) 10,222
------------
RELATED PARTY MONEY MARKET FUND -- 0.6%
First American Prime Obligations
Fund (A) 6,634,147 6,634
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $6,634) 6,634
------------
TOTAL INVESTMENTS -- 99.9%
(Cost $603,337) 1,007,577
------------
OTHER ASSETS AND LIABILITIES, NET -- 0.1% (B) 513
------------
13 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
LARGE CAP GROWTH FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital--Class-A
($.0001 par value--2 billion authorized)
based on 8,218,318 outstanding shares $ 75,885
Portfolio Capital--Class-B
($.0001 par value--2 billion authorized)
based on 871,998 outstanding shares 12,572
Portfolio Capital--Class-C
($.0001 par value--2 billion authorized)
based on 2,160 outstanding shares 41
Portfolio Capital--Class-Y
($.0001 par value--2 billion authorized)
based on 43,142,151 outstanding shares 417,573
Undistributed net investment income 589
Accumulated net realized gain on investments 97,190
Net unrealized appreciation of investments 404,240
------------
TOTAL NET ASSETS -- 100.0% $ 1,008,090
------------
Net asset value and redemption
price per share--Class-A $ 19.25
Maximum sales charge of 5.25% (C) 1.07
------------
Offering price per share--Class-A $ 20.32
------------
Net asset value and offering
price per share--Class-B (D) $ 18.95
------------
Net asset value per share--Class-C (E) $ 19.23
Maximum sales charge of 1.00% (F) 0.19
------------
Offering price per share--Class-C $ 19.42
------------
Net asset value, offering price, and
redemption price per share--Class-Y $ 19.32
------------
* Non-income producing security
(A)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.
(B)Other assets and liabilities representing greater than five percent of total
net assets include the following (000):
Cash collateral received for securities on loan $ 280,034
Payable upon return of securities on loan $(280,034)
(C)The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 5.25%.
(D)Class-B has a contingent deferred sales charge. For a description of a
possible redemption charge, see the notes to the financial statements.
(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 calcluated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%. ADR--American Depositary Receipt Cl--Class
FNMA--Federal National Mortgage Association
The accompanying notes are an integral part of the financial statements.
LARGE CAP VALUE FUND
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS -- 95.1%
BASIC MATERIALS -- 7.3%
Air Products & Chemicals 39,600 $ 1,356
Alcoa 247,800 10,206
Bemis 361,600 11,232
E.I. du Pont de Nemours 678,700 39,407
International Paper 590,700 24,920
Praxair 864,400 31,172
------------
118,293
------------
CAPITAL GOODS -- 2.2%
Allied Signal 84,200 4,142
General Electric 56,100 6,206
Minnesota Mining & Manufacturing 361,100 25,548
------------
35,896
------------
COMMUNICATION SERVICES -- 8.1%
Ameritech 384,400 22,247
AT&T 364,300 29,076
Bell Atlantic 790,712 40,870
Deutsche Telekom, ADR 884,100 35,751
GTE 56,100 3,394
------------
131,338
------------
CONSUMER CYCLICALS -- 4.4%
Federated Department Stores* 835,700 33,532
Ford Motor 79,500 4,512
May Department Stores 862,400 33,741
------------
71,785
------------
CONSUMER STAPLES -- 9.4%
ConAgra 1,264,500 32,324
General Mills 542,800 41,015
Kimberly Clark 875,600 41,974
Procter & Gamble 23,400 2,292
Sara Lee 1,379,000 34,130
------------
151,735
------------
ENERGY -- 8.3%
Elf Aquitaine, ADR 634,900 42,737
Exxon 420,600 29,679
Royal Dutch Petroleum 634,800 33,010
Texaco 499,600 28,352
------------
133,778
------------
FINANCIALS -- 22.7%
Allstate 1,127,800 41,799
AMBAC 458,500 24,759
American Express 296,700 34,862
Associates First Capital 79,054 3,557
BankAmerica 42,364 2,992
BankBoston 601,500 26,053
Chase Manhattan 565,500 45,982
Chubb 37,400 2,190
Cigna 449,300 37,657
FNMA 151,800 10,512
Household International 614,000 28,014
KeyCorp 731,000 22,158
Mellon Bank 577,400 40,635
Unum 335,700 15,967
Wells Fargo 811,800 28,464
------------
365,601
------------
14 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
LARGE CAP FUNDS
LARGE CAP VALUE FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
HEALTH CARE -- 9.1%
Abbott Laboratories 96,100 $ 4,499
American Home Products 727,000 47,437
Johnson & Johnson 42,100 3,944
Merck 74,800 5,998
Pharmacia & Upjohn 911,000 56,824
United Healthcare 524,700 27,612
------------
146,314
------------
TECHNOLOGY -- 15.8%
3Com* 897,400 20,921
Electronic Data Systems 1,095,100 53,318
First Data 931,700 39,830
IBM 241,278 42,767
Motorola 612,700 44,880
Raytheon, Cl A 419,840 24,246
Seagate Technology* 1,009,900 29,855
------------
255,817
------------
TRANSPORTATION -- 2.1%
Union Pacific 619,100 33,083
------------
UTILITIES -- 5.7%
Duke Power 440,100 24,040
Enron 56,100 3,604
FPL Group 766,400 40,811
Southern 1,020,900 23,800
------------
92,255
------------
TOTAL COMMON STOCKS
(Cost $1,290,003) 1,535,895
------------
WARRANT -- 0.0%
Sound Advice* 2,617 --
------------
TOTAL WARRANT
(Cost $0) --
------------
RELATED PARTY MONEY MARKET FUND -- 3.1%
First American Prime Obligations
Fund (A) 49,928,248 49,928
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $49,928) 49,928
------------
TOTAL INVESTMENTS -- 98.2%
(Cost $1,339,931) 1,585,823
------------
OTHER ASSETS AND LIABILITIES, NET -- 1.8% (B) 29,171
------------
LARGE CAP VALUE FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital--Class-A
($.0001 par value--2 billion authorized)
based on 8,002,003 outstanding shares $ 136,996
Portfolio Capital--Class-B
($.0001 par value--2 billion authorized)
based on 2,781,418 outstanding shares 62,492
Portfolio Capital--Class-C
($.0001 par value--2 billion authorized)
based on 5,050 outstanding shares 114
Portfolio Capital--Class-Y
($.0001 par value--2 billion authorized)
based on 60,356,822 outstanding shares 1,081,604
Undistributed net investment income 180
Accumulated net realized gain on investments 87,716
Net unrealized appreciation of investments 245,892
------------
TOTAL NET ASSETS -- 100.0% $ 1,614,994
------------
Net asset value and redemption
price per share--Class-A $ 22.67
Maximum sales charge of 5.25% (C) 1.26
------------
Offering price per share--Class-A $ 23.93
------------
Net asset value and offering
price per share--Class-B (D) $ 22.44
------------
Net asset value per share--Class-C (E) $ 22.66
Maximum sales charge of 1.00% (F) 0.23
------------
Offering price per share--Class-C $ 22.89
------------
Net asset value, offering price, and
redemption price per share--Class-Y $ 22.72
------------
*Non-income producing security
(A)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.
(B)Other assets and liabilities representing greater than five percent of total
net assets include the following (000):
Cash collateral received for securities on loan $ 219,142
Payable upon return of securities on loan $(219,142)
(C)The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 5.25%.
(D)Class-B has a contingent deferred sales charge. For a description of a
possible redemption charge, see the notes to the financial statements.
(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 calcluated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%.
ADR--American Depositary Receipt
AMBAC--American Municipal Bond Assurance Company
Cl--Class
FNMA--Federal National Mortgage Association
The accompanying notes are an integral part of the financial statements.
15 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
OPERATIONS FOR THE SIX MONTHS ENDED MARCH 31, 1999 (UNAUDITED)
IN THOUSANDS
<TABLE>
<CAPTION>
BALANCED EQUITY INCOME EQUITY INDEX
FUND FUND FUND
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 8,146+ $ 1,615+ $ 1,405+
Dividends 2,717 4,903 8,719
- -------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 10,863 6,518 10,124
=======================================================================================================
EXPENSES:
Investment advisory fees 2,090 1,379 4,687
Less: Waiver of investment advisory fees (323) (248) (3,562)
Administrator fees 325 214 730
Transfer agent fees 135 37 158
Custodian fees 90 59 201
Directors' fees 6 4 13
Registration fees 28 12 47
Professional fees 7 5 17
Printing 18 12 41
Distribution fees - class-A 99 16 84
Distribution fees - class-B 310 48 295
Distribution fees - class-C -- -- 3
Other 14 4 12
- -------------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 2,799 1,542 2,726
=======================================================================================================
Investment income - net 8,064 4,976 7,398
- -------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS
ON INVESTMENTS - NET:
Net realized gain on investments 31,644 30,423 5,537
Net realized gain on futures contracts -- -- 10,452
Net change in unrealized appreciation of investments 17,131 20,104 284,216
Net change in unrealized appreciation
of futures contracts -- -- 21
- -------------------------------------------------------------------------------------------------------
NET GAIN ON INVESTMENTS 48,775 50,527 300,226
=======================================================================================================
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 56,839 $ 55,503 $ 307,624
=======================================================================================================
</TABLE>
+ Includes income from securities lending program. See the Notes to the
Financial Statements for additional information.
The accompanying notes are an integral part of the financial statements.
16 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
LARGE CAP FUNDS
<TABLE>
<CAPTION>
LARGE CAP LARGE CAP
GROWTH FUND VALUE FUND
- --------------------------------
<S> <C>
$ 1,210+ $ 1,530+
4,806 12,850
- --------------------------------
6,016 14,380
================================
3,227 5,501
(369) (706)
502 856
92 243
138 236
9 16
39 63
12 20
28 47
190 231
67 310
-- --
10 15
- --------------------------------
3,945 6,832
================================
2,071 7,548
- --------------------------------
97,727 112,439
-- --
159,557 153,936
-- --
- --------------------------------
257,284 266,375
================================
$ 259,355 $ 273,923
================================
</TABLE>
17 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
CHANGES IN NET ASSETS IN THOUSANDS
<TABLE>
<CAPTION>
BALANCED EQUITY EQUITY
FUND INCOME FUND INDEX FUND
- -----------------------------------------------------------------------------------------------------------------------------------
10/1/98 10/1/97 10/1/98 10/1/97 10/1/98 10/1/97
to to to to to to
3/31/99 9/30/98 3/31/99 9/30/98 3/31/99 9/30/98
- -----------------------------------------------------------------------------------------------------------------------------------
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Investment income - net $ 8,064 $ 17,317 $ 4,976 $ 11,169 $ 7,398 $ 13,094
Net realized gain on investments 31,644 64,326 30,423 21,440 5,537 45,838
Net realized gain (loss) on futures contracts -- -- -- -- 10,452 (1,079)
Net change in unrealized appreciation (depreciation)
of investments 17,131 (76,426) 20,104 1,279 284,216 10,202
Net change in unrealized appreciation (depreciation)
of futures contracts -- -- -- -- 21 (147)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 56,839 5,217 55,503 33,888 307,624 67,908
- -----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class-A (1,041) (1,407) (152) (268) (320) (402)
Class-B (593) (1,183) (84) (143) (84) (155)
Class-C -- -- (1) -- (2) --
Class-Y (6,466) (14,657) (4,894) (10,657) (7,088) (12,321)
Net realized gain on investments:
Class-A (8,756) (2,532) (662) (524) (1,098) (1,395)
Class-B (6,690) (3,406) (506) (372) (996) (1,890)
Class-C -- -- -- -- -- --
Class-Y (51,649) (31,658) (20,399) (20,162) (21,802) (39,689)
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS (75,195) (54,843) (26,698) (32,126) (31,390) (55,852)
===================================================================================================================================
CAPITAL SHARE TRANSACTIONS(1):
Class-A
Proceeds from sales 9,130 17,972 4,892 18,729 39,628 86,010
Shares issued in connection with acquisition of
Qualivest Fund
(FAIF Asset Allocation for Balanced Fund) -- 2,346 -- -- -- 5,782
Shares issued in connection with acquisition of Piper Fund -- 43,884 -- -- -- --
Reinvestment of distributions 9,398 3,794 617 554 1,350 1,588
Payments for redemptions (18,140) (16,652) (2,072) (15,324) (10,077) (62,121)
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from class-A transactions 388 51,344 3,437 3,959 30,901 31,259
- -----------------------------------------------------------------------------------------------------------------------------------
Class-B
Proceeds from sales 3,674 18,038 1,943 2,710 24,552 22,783
Shares issued in connection with acquisition of
Qualivest Fund
(FAIF Asset Allocation for Balanced Fund) -- 5,078 -- -- -- --
Reinvestment of distributions 7,109 4,414 557 492 1,059 1,990
Payments for redemptions (5,835) (7,174) (917) (1,228) (3,624) (3,576)
- -----------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from class-B transactions 4,948 20,356 1,583 1,974 21,987 21,197
- -----------------------------------------------------------------------------------------------------------------------------------
Class-C
Proceeds from sales 189 -- 249 -- 4,132 --
Reinvestment of distributions -- -- -- -- 2 --
Payment for redemptions -- -- -- -- (1) --
- -----------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from class-C transactions 189 -- 249 -- 4,133 --
- -----------------------------------------------------------------------------------------------------------------------------------
Class-Y
Proceeds from sales 54,134 126,347 36,514 47,160 267,187 294,141
Shares issued in connection with the acquisition
of Common Trust Fund Assets -- -- -- -- -- --
Shares issued in connection with acquisition
of Qualivest Fund (FAIF Asset Allocation for Balanced Fund) -- 94,226 -- -- -- 345,903
Shares issued in connection with acquisition of Piper Fund -- -- -- -- -- --
Reinvestment of distributions 54,691 44,419 2,817 3,510 26,130 46,426
Payments for redemptions (138,022) (188,151) (42,035) (63,003) (208,453) (261,290)
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from class-Y transactions (29,197) 76,841 (2,704) (12,333) 84,864 425,180
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share
transactions (23,672) 148,541 2,565 (6,400) 141,885 477,636
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (42,028) 98,915 31,370 (4,638) 418,119 489,692
NET ASSETS AT BEGINNING OF PERIOD 593,018 494,103 379,176 383,814 1,086,660 596,968
===================================================================================================================================
NET ASSETS AT END OF PERIOD (2) $ 550,990 $ 593,018 $ 410,546 $ 379,176 $ 1,504,779 $ 1,086,660
===================================================================================================================================
</TABLE>
(1)See note 4 in the notes to the financial statements for additional
information.
(2)Includes undistributed net investment income (000) of $330 and $366 for
Balanced Fund, $259 and $414 for Equity Income Fund, $301 and $397 for Equity
Index Fund, $589 and $806 for Large Cap Growth Fund, $180 and $490 for Large
Cap Value Fund, at March 31, 1999, and September 30, 1998, respectively.
The accompanying notes are an integral part of the financial statements.
18 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
LARGE CAP FUNDS
<TABLE>
<CAPTION>
LARGE CAP LARGE CAP
GROWTH FUND VALUE FUND
- -----------------------------------------------------------------
10/1/98 10/1/97 10/1/98 10/1/97
to to to to
3/31/99 9/30/98 3/31/99 9/30/98
- -----------------------------------------------------------------
(unaudited) (unaudited)
<S> <C> <C> <C>
$ 2,071 $ 6,065 $ 7,548 $ 20,324
97,727 95,953 112,439 214,528
-- -- -- --
159,557 (113,637) 153,936 (372,822)
-- -- -- --
- -----------------------------------------------------------------
259,355 (11,619) 273,923 (137,970)
- -----------------------------------------------------------------
(232) (150) (764) (1,171)
-- (16) (89) (318)
-- -- -- --
(2,056) (5,203) (7,006) (18,581)
(16,050) (1,066) (27,729) (5,825)
(1,316) (757) (9,199) (7,436)
-- -- -- --
(77,627) (53,851) (202,092) (143,987)
- -----------------------------------------------------------------
(97,281) (61,043) (246,879) (177,318)
=================================================================
28,184 44,694 18,120 37,943
-- -- -- 9,139
-- 170,289 -- 122,208
15,207 833 24,196 7,470
(53,289) (66,502) (34,816) (29,938)
- -----------------------------------------------------------------
(9,898) 149,314 7,500 146,822
- -----------------------------------------------------------------
2,650 3,504 2,413 16,274
-- -- -- --
1,295 759 9,143 7,540
(946) (1,633) (6,380) (7,250)
- -----------------------------------------------------------------
2,999 2,630 5,176 16,564
- -----------------------------------------------------------------
41 -- 114 --
-- -- -- --
-- -- -- --
- -----------------------------------------------------------------
41 -- 114 --
- -----------------------------------------------------------------
95,323 176,400 177,964 377,320
-- -- -- 265,740
-- -- -- 161,636
-- -- -- 14,861
21,629 11,815 116,440 96,891
(96,346) (137,884) (199,877) (482,975)
- -----------------------------------------------------------------
20,606 50,331 94,527 433,473
- -----------------------------------------------------------------
13,748 202,275 107,317 596,859
- -----------------------------------------------------------------
175,822 129,613 134,361 281,571
832,268 702,655 1,480,633 1,199,062
=================================================================
$ 1,008,090 $ 832,268 $ 1,614,994 $ 1,480,633
=================================================================
</TABLE>
19 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS
ENDED SEPTEMBER 30, UNLESS OTHERWISE INDICATED
<TABLE>
<CAPTION>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS
VALUE NET GAINS OR FROM NET DISTRIBUTIONS
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM
OF PERIOD INCOME INVESTMENTS INCOME CAPITAL GAINS
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
BALANCED FUND
Class-A
1999*(unaudited) $13.98 $ 0.18 $ 1.10 $(0.18) $(1.59)
1998 15.41 0.40 (0.30) (0.41) (1.12)
1997 13.14 0.39 2.85 (0.39) (0.58)
1996 12.12 0.39 1.43 (0.39) (0.41)
1995 10.54 0.38 1.72 (0.37) (0.15)
1994 10.73 0.34 (0.02) (0.34) (0.17)
Class-B
1999*(unaudited) $13.93 $ 0.13 $ 1.08 $(0.13) $(1.59)
1998 15.36 0.30 (0.31) (0.30) (1.12)
1997 13.10 0.29 2.84 (0.29) (0.58)
1996 12.09 0.31 1.42 (0.31) (0.41)
1995 10.53 0.29 1.71 (0.29) (0.15)
1994(1) 10.66 0.06 (0.12) (0.07) --
Class-C
1999(2)(unaudited) $13.69 $ 0.07 $ 1.37 $(0.06) $(1.59)
Class-Y
1999*(unaudited) $14.01 $ 0.19 $ 1.10 $(0.19) $(1.59)
1998 15.43 0.44 (0.30) (0.44) (1.12)
1997 13.15 0.42 2.86 (0.42) (0.58)
1996 12.13 0.42 1.43 (0.42) (0.41)
1995 10.54 0.40 1.73 (0.39) (0.15)
1994(3) 10.86 0.25 (0.32) (0.25) --
- ---------------------------------------------------------------------------------------------------
EQUITY INCOME FUND
Class-A
1999*(unaudited) $15.70 $ 0.19 $ 2.08 $(0.20) $(0.90)
1998 15.69 0.41 0.86 (0.41) (0.85)
1997 12.65 0.40 3.40 (0.41) (0.35)
1996 11.24 0.39 1.42 (0.39) (0.01)
1995 9.89 0.41 1.33 (0.39) --
1994(4) 9.87 0.41 -- (0.39) --
1993(5)(6) 10.00 0.57 (0.14) (0.56) --
Class-B
1999*(unaudited) $15.65 $ 0.13 $ 2.09 $(0.14) $(0.90)
1998 15.62 0.30 0.87 (0.29) (0.85)
1997 12.61 0.29 3.37 (0.30) (0.35)
1996 11.20 0.31 1.42 (0.31) (0.01)
1995 9.88 0.33 1.32 (0.33) --
1994(1) 9.87 0.04 0.02 (0.05) --
Class-C
1999(2)(unaudited) $16.62 $ 0.09 $ 0.24 $(0.08) $ --
Class-Y
1999*(unaudited) $15.74 $ 0.21 $ 2.09 $(0.21) $(0.90)
1998 15.70 0.46 0.88 (0.45) (0.85)
1997 12.66 0.43 3.40 (0.44) (0.35)
1996 11.24 0.42 1.43 (0.42) (0.01)
1995 9.89 0.41 1.35 (0.41) --
1994(7) 9.90 0.07 (0.03) (0.05) --
- ---------------------------------------------------------------------------------------------------
EQUITY INDEX FUND
Class-A
1999*(unaudited) $20.61 $ 0.11 $ 5.44 $(0.11) $(0.44)
1998 20.76 0.24 1.39 (0.24) (1.54)
1997 15.49 0.12 5.70 (0.12) (0.43)
1996 13.35 0.27 2.32 (0.27) (0.18)
1995 10.68 0.25 2.76 (0.25) (0.09)
1994 10.60 0.25 0.09 (0.25) (0.01)
Class-B
1999*(unaudited) $20.49 $ 0.03 $ 5.41 $(0.03) $(0.44)
1998 20.67 0.09 1.36 (0.09) (1.54)
1997 15.43 0.12 5.67 (0.12) (0.43)
1996 13.30 0.17 2.31 (0.17) (0.18)
1995 10.66 0.23 2.68 (0.18) (0.09)
1994(1) 10.68 0.01 0.04 (0.07) --
Class-C
1999(2)(unaudited) $25.35 $ 0.04 $ 0.24 $(0.03) $ --
Class-Y
1999*(unaudited) $20.60 $ 0.14 $ 5.45 $(0.14) $(0.44)
1998 20.74 0.29 1.40 (0.29) (1.54)
1997 15.47 0.29 5.70 (0.29) (0.43)
1996 13.34 0.31 2.31 (0.31) (0.18)
1995 10.67 0.28 2.75 (0.27) (0.09)
1994(3) 10.85 0.20 (0.18) (0.20) --
- ---------------------------------------------------------------------------------------------------
</TABLE>
+ Returns are for the period indicated and have not been annualized.
* For the six month period ended March 31. All ratios for the period have been
annualized.
(A)Excluding sales charges.
(1)Class-B shares have been offered since August 15, 1994. All ratios for the
period have been annualized.
(2)For the six month period ended March 31. Class-C shares have been offered
since February 1, 1999. All ratios for the period have been annualized.
(3)Class-Y shares have been offered since February 4, 1994. All ratios for the
period have been annualized.
20 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
LARGE CAP FUNDS
<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>
$13.49 9.43%+ $ 76,083 1.05% 2.59% 1.16% 38%
13.98 0.72 78,269 1.05 2.82 1.15 103
15.41 25.80 32,309 1.05 2.74 1.13 84
13.14 15.61 20,927 1.05 3.05 1.14 73
12.12 20.57 15,288 0.99 3.41 1.19 77
10.54 3.02 13,734 0.77 2.63 1.24 98
$13.42 8.94%+ $ 62,235 1.80% 1.83% 1.91% 38%
13.93 (0.02) 59,323 1.80 2.02 1.90 103
15.36 24.93 43,707 1.80 1.99 1.88 84
13.10 14.78 15,542 1.80 2.32 1.89 73
12.09 19.58 3,120 1.79 2.60 1.94 77
10.53 (0.55)+ 270 1.75 2.80 2.05 98
$13.48 (1.10)%+ $ 189 1.80% 1.51% 1.91% 38%
$13.52 9.54%+ $ 412,483 0.80% 2.84% 0.91% 38%
14.01 1.03 455,426 0.80 3.01 0.90 103
15.43 26.17 418,087 0.80 2.99 0.88 84
13.15 15.89 332,786 0.80 3.31 0.89 73
12.13 20.89 192,145 0.79 3.61 0.94 77
10.54 (0.64)+ 125,285 0.75 3.51 1.05 98
- -----------------------------------------------------------------------------------------------------------------
$16.87 14.99%+ $ 15,384 1.00% 2.30% 1.13% 17%
15.70 8.38 11,018 1.00 2.58 1.12 14
15.69 31.16 7,276 1.00 2.96 1.17 39
12.65 16.41 2,581 1.00 3.25 1.20 23
11.24 18.06 1,995 0.92 3.91 1.31 23
9.89 4.22+ 1,852 0.88 4.88 1.39 108
9.87 4.44+ 28,786 0.75 6.09 1.36 68
$16.83 14.71%+ $ 10,860 1.75% 1.56% 1.88% 17%
15.65 7.77 8,570 1.75 1.81 1.87 14
15.62 30.06 6,619 1.75 2.19 1.92 39
12.61 15.66 3,770 1.75 2.49 1.95 23
11.20 17.10 1,233 1.75 3.05 2.06 23
9.88 0.57+ 1 1.75 4.39 2.14 108
$16.87 1.97%+ $ 253 1.75% 1.35% 1.88% 17%
$16.93 15.22%+ $ 384,049 0.75% 2.56% 0.88% 17%
15.74 8.85 359,588 0.75 2.81 0.87 14
15.70 31.45 369,919 0.75 3.12 0.92 39
12.66 16.79 64,590 0.75 3.50 0.95 23
11.24 18.24 52,126 0.75 4.11 1.06 23
9.89 0.45+ 17,489 0.75 5.61 1.14 108
- -----------------------------------------------------------------------------------------------------------------
$25.61 27.23%+ $ 89,907 0.60% 0.91% 1.13% 1%
20.61 8.50 46,010 0.60 1.11 1.13 14
20.76 39.47 15,977 0.60 1.36 1.13 8
15.49 19.75 6,221 0.60 1.87 1.15 10
13.35 28.90 2,140 0.57 2.16 1.20 9
10.68 3.25 758 0.35 2.23 1.23 11
$25.46 26.83%+ $ 77,807 1.35% 0.16% 1.88% 1%
20.49 7.66 44,122 1.35 0.37 1.88 14
20.67 38.45 23,733 1.35 0.61 1.88 8
15.43 18.95 8,252 1.35 1.11 1.90 10
13.30 27.87 1,197 1.35 1.34 1.95 9
10.66 0.48+ 29 1.35 1.68 2.03 11
$25.60 1.11%+ $ 4,165 1.35% 0.08% 1.88% 1%
$25.61 27.44%+ $1,332,900 0.35% 1.16% 0.88% 1%
20.60 8.82 996,528 0.35 1.36 0.88 14
20.74 39.85 557,258 0.35 1.62 0.88 8
15.47 19.98 348,539 0.35 2.14 0.90 10
13.34 29.17 218,932 0.35 2.41 0.95 9
10.67 0.18+ 163,688 0.35 2.59 1.03 11
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
(4)On April 28, 1994, the board of directors approved a change in this Fund's
fiscal year end from November 30 to September 30, effective September 30,
1994. On April 28, 1994, the shareholders of the Fund approved a change in
the advisor from Boulevard National Bank to U.S. Bank National Association,
formerly First Bank N.A. All ratios have been annualized.
(5)For the period ended November 30.
(6)Commenced operations on December 18, 1992. All ratios for the period have
been annualized.
(7)Class-Y shares have been offered since August 2, 1994. All ratios for the
period have been annualized.
21 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS
ENDED SEPTEMBER 30, UNLESS OTHERWISE INDICATED
<TABLE>
<CAPTION>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS
VALUE NET GAINS OR FROM NET DISTRIBUTIONS
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM
OF PERIOD INCOME INVESTMENTS INCOME CAPITAL GAINS
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
LARGE CAP GROWTH FUND
Class-A
1999*(unaudited) $16.25 $ 0.02 $ 4.89 $(0.03) $(1.88)
1998 17.63 0.09 (0.02) (0.09) (1.36)
1997 13.63 0.09 4.28 (0.10) (0.27)
1996 11.75 0.15 1.88 (0.15) --
1995 9.09 0.15 2.66 (0.15) --
1994(2) 9.39 0.10 (0.29) (0.11) --
1993(3)(4) 10.00 0.11 (0.63) (0.09) --
Class-B
1999*(unaudited) $16.06 $ -- $ 4.77 $ -- $(1.88)
1998 17.47 0.03 (0.05) (0.03) (1.36)
1997 13.57 0.01 4.18 (0.02) (0.27)
1996 11.73 0.08 1.84 (0.08) --
1995 9.09 0.09 2.65 (0.10) --
1994(5) 8.87 0.01 0.23 (0.02) --
Class-C
1999(6)(unaudited) $18.56 $ 0.02 $ 0.66 $(0.01) $ --
Class-Y
1999*(unaudited) $16.30 $ 0.04 $ 4.91 $(0.05) $(1.88)
1998 17.64 0.13 0.02 (0.13) (1.36)
1997 13.66 0.12 4.26 (0.13) (0.27)
1996 11.78 0.18 1.88 (0.18) --
1995 9.10 0.17 2.67 (0.16) --
1994(1) 8.92 0.03 0.18 (0.03) --
- ---------------------------------------------------------------------------------------------------
LARGE CAP VALUE FUND
Class-A
1999*(unaudited) $22.39 $ 0.09 $ 3.98 $(0.09) $(3.70)
1998 28.74 0.29 (2.59) (0.29) (3.76)
1997 22.59 0.33 7.90 (0.32) (1.76)
1996 19.57 0.36 4.07 (0.36) (1.05)
1995 16.51 0.33 3.64 (0.32) (0.59)
1994 16.00 0.31 1.00 (0.30) (0.50)
Class-B
1999*(unaudited) $22.21 $ 0.03 $ 3.93 $(0.03) $(3.70)
1998 28.55 0.13 (2.58) (0.13) (3.76)
1997 22.50 0.18 7.81 (0.18) (1.76)
1996 19.49 0.22 4.06 (0.22) (1.05)
1995 16.49 0.26 3.55 (0.22) (0.59)
1994(5) 16.65 0.03 (0.10) (0.09) --
Class-C
1999(6)(unaudited) $22.79 $ 0.03 $(0.13) $(0.03) $ --
Class-Y
1999*(unaudited) $22.42 $ 0.11 $ 4.01 $(0.12) $(3.70)
1998 28.75 0.35 (2.57) (0.35) (3.76)
1997 22.60 0.39 7.90 (0.38) (1.76)
1996 19.56 0.42 4.09 (0.42) (1.05)
1995 16.50 0.36 3.64 (0.35) (0.59)
1994(7) 16.47 0.25 0.03 (0.25) --
- ---------------------------------------------------------------------------------------------------
</TABLE>
+ Returns are for the period indicated and have not been annualized.
* For the six month period ended March 31. All ratios for the period have been
annualized.
(A)Excluding sales charges.
(1)Class-Y shares have been offered since August 2, 1994. All ratios for the
period have been annualized.
(2)On April 28, 1994, the board of directors approved a change in this Fund's
fiscal year end from November 30 to September 30, effective September 30,
1994. On April 28, 1994, the shareholders of the Fund approved a change in
the advisor from Boulevard National Bank to U.S. Bank National Association,
formerly First Bank N.A. All ratios have been annualized.
(3)For the period ended November 30.
(4)Commenced operations on December 18, 1992. All ratios for the period have
been annualized.
(5)Class-B shares have been offered since August 15, 1994. All ratios for the
period have been annualized.
(6)For the period ended March 31. Class-C shares have been offered since
February 1, 1999. All ratios for the period have been annualized.
(7)Class-Y shares have been offered since February 4, 1994. All ratios for the
period have been annualized.
22 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
LARGE CAP FUNDS
<TABLE>
<CAPTION>
RATIO OF
RATIO OF NET EXPENSES TO
NET ASSET RATIO OF INVESTMENT AVERAGE
VALUE NET ASSETS EXPENSES TO INCOME (LOSS) NET ASSETS PORTFOLIO
END OF TOTAL END OF AVERAGE TO AVERAGE (EXCLUDING TURNOVER
PERIOD RETURN (A) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) RATE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$19.25 32.52%+ $ 158,187 1.05% 0.25% 1.13% 30%
16.25 0.61 140,948 1.05 0.56 1.11 38
17.63 32.69 12,017 1.05 0.57 1.14 34
13.63 17.38 5,318 1.04 1.13 1.17 21
11.75 31.21 2,710 0.92 1.52 1.26 28
9.09 (2.07)+ 1,900 0.90 1.15 1.33 101
9.39 (5.18)+ 31,084 0.78 1.26 1.25 5
$18.95 31.99%+ $ 16,525 1.80% (0.50)% 1.88% 30%
16.06 0.09 11,177 1.80 (0.20) 1.86 38
17.47 31.42 9,487 1.80 (0.18) 1.89 34
13.57 16.41 5,775 1.79 0.36 1.92 21
11.73 30.29 819 1.75 0.58 2.01 28
9.09 2.75+ 12 1.75 1.20 2.08 101
$19.23 3.67%+ $ 42 1.80% (0.46)% 1.88% 30%
$19.32 32.69%+ $ 833,336 0.80% 0.51% 0.88% 30%
16.30 1.07 680,143 0.80 0.82 0.86 38
17.64 32.75 681,151 0.80 0.77 0.89 34
13.66 17.58 225,900 0.79 1.39 0.92 21
11.78 31.57 132,854 0.75 1.69 1.01 28
9.10 2.36+ 31,875 0.75 2.37 1.08 101
- -------------------------------------------------------------------------------------------------------------------
$22.67 19.02%+ $ 181,421 1.05% 0.78% 1.14% 34%
22.39 (8.77) 170,529 1.05 1.21 1.13 74
28.74 38.82 50,381 1.05 1.14 1.14 57
22.59 23.90 22,965 1.05 1.64 1.13 40
19.57 25.26 13,076 1.00 1.89 1.19 52
16.51 8.35 8,421 0.76 1.51 1.20 65
$22.44 18.62%+ $ 62,409 1.80% 0.02% 1.89% 34%
22.21 (9.37) 56,259 1.80 0.41 1.88 74
28.55 37.71 53,420 1.80 0.39 1.89 57
22.50 23.08 23,316 1.80 0.89 1.88 40
19.49 24.20 7,051 1.79 1.10 1.94 52
16.49 (0.43)+ 346 1.75 1.58 2.01 65
$22.66 (0.44)%+ $ 114 1.80% 0.02% 1.89% 34%
$22.72 19.23%+ $1,371,050 0.80% 1.03% 0.89% 34%
22.42 (8.47) 1,253,845 0.80 1.40 0.88 74
28.75 39.13 1,095,262 0.80 1.39 0.89 57
22.60 24.32 471,206 0.80 1.90 0.88 40
19.56 25.50 312,559 0.79 2.10 0.94 52
16.50 1.70+ 154,949 0.75 2.28 1.01 65
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
23 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
MID CAP GROWTH FUND
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS -- 95.3%
Basic Materials -- 3.0%
Ecolab 213,600 $ 7,583
Valspar 124,700 3,936
------------
11,519
------------
CAPITAL GOODS -- 6.4%
Aptar Group 143,000 3,718
Danaher 148,500 7,759
Pentair 119,000 4,016
Sanmina* 83,500 5,323
Tower Automotive* 175,800 3,274
------------
24,090
------------
COMMUNICATION SERVICES -- 3.7%
Global Crossing* 202,400 9,361
RSL Communications, Cl A* 127,100 4,568
------------
13,929
------------
CONSUMER CYCLICALS -- 17.0%
Apollo Group, Cl A* 196,500 5,870
Bed Bath & Beyond* 147,800 5,395
Checkfree Holdings* 60,000 2,554
Cintas 113,200 7,400
Devry* 285,900 8,291
Dollar General 117,281 3,988
Dollar Tree Stores* 124,400 3,849
Kohl's* 107,100 7,591
O'Reilly Automotive* 84,900 3,799
Office Depot* 109,200 4,020
Stewart Enterprises, Cl A 345,400 5,548
TJX 168,900 5,743
------------
64,048
------------
CONSUMER STAPLES -- 11.6%
Cardinal Health 76,100 5,023
Chancellor Media, Cl A* 117,100 5,518
Clear Channel Communications* 121,000 8,115
Dial 191,500 6,583
Rexall Sundown* 156,200 2,997
Rite Aid 151,800 3,795
ServiceMaster 217,637 4,421
U.S. Foodservice* 137,300 6,384
Ziff-Davis* 30,900 1,112
------------
43,948
------------
ENERGY -- 1.3%
Anadarko Petroleum 129,800 4,900
------------
FINANCIALS -- 6.5%
Charter One Financial 128,100 3,697
FINOVA Group 104,900 5,442
Firstar 65,310 5,845
MGIC Investment 90,400 3,170
Reliastar Financial 98,900 4,216
United Pan-Europe 55,200 2,111
------------
24,481
------------
MID CAP GROWTH FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
HEALTH CARE -- 9.9%
Biochem Pharmaceuticals* 163,950 $ 3,494
Centocor* 91,600 3,383
Elan, ADR* 57,400 4,004
Genzyme* 57,600 2,905
Guidant 119,300 7,218
Health Management Associates, Cl A* 173,800 2,118
Mylan Laboratories* 160,700 4,409
Omnicare 146,750 2,797
Quintiles Transnational* 187,750 7,088
------------
37,416
------------
TECHNOLOGY -- 35.9%
ADC Telecommunications* 150,000 7,153
Analog Devices* 147,300 4,382
Ascend Communications* 138,700 11,607
Ceridian* 176,300 6,446
Citrix Systems* 100,200 3,820
Compuware* 127,900 3,054
Comverse Technology* 142,200 12,087
Equifax 111,300 3,826
Fiserv* 143,000 7,668
I2 Technologies* 130,300 3,465
International Network Services* 70,700 4,945
KLA Instruments* 47,100 2,287
Legato Systems* 105,870 5,465
Maxim Integrated Products* 77,600 4,200
Paychex 102,600 4,867
PMC-Sierra* 40,900 2,912
Sapient* 79,600 5,681
Siebel Systems* 66,800 3,173
Sungard Data Systems* 184,600 7,384
Tellabs* 104,000 10,166
Teradyne* 68,900 3,759
Uniphase* 42,200 4,858
Vitesse Semiconductor* 162,700 8,237
Xilinx* 101,000 4,097
------------
135,539
------------
TOTAL COMMON STOCKS
(Cost $259,472) 359,870
------------
RELATED PARTY MONEY MARKET FUND -- 6.3%
First American Prime Obligations
Fund (A) 23,826,616 23,827
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $23,827) 23,827
------------
TOTAL INVESTMENTS -- 101.6%
(Cost $283,299) 383,697
------------
OTHER ASSETS AND LIABILITIES, NET -- (1.6%) (B) (6,045)
------------
24 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
MID CAP FUNDS
MID CAP GROWTH FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital--Class-A
($.0001 par value--2 billion authorized)
based on 15,615,326 outstanding shares $ 74,065
Portfolio Capital--Class-B
($.0001 par value--2 billion authorized)
based on 17,780 outstanding shares 210
Portfolio Capital--Class-C
($.0001 par value--2 billion authorized)
based on 3,633 outstanding shares 43
Portfolio Capital--Class-Y
($.0001 par value--2 billion authorized)
based on 15,434,705 outstanding shares 188,675
Accumulated net investment loss (469)
Accumulated net realized gain on investments 14,730
Net unrealized appreciation of investments 100,398
------------
TOTAL NET ASSETS -- 100.0% $ 377,652
------------
Net asset value and redemption
price per share--Class-A $ 12.11
Maximum sales charge of 5.25% (C) 0.67
------------
Offering price per share--Class-A $ 12.78
------------
Net asset value and offering
price per share--Class-B (D) $ 12.03
------------
Net asset value per share--Class-C (E) $ 12.09
Maximum sales charge of 1.00% (F) 0.12
------------
Offering price per share--Class-C $ 12.21
------------
Net asset value, offering price, and
redemption price per share--Class-Y $ 12.20
------------
* Non-income producing security
(A)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.
(B)Other assets and liabilities representing greater than five percent of total
net assets include the following (000):
Cash collateral received for securities on loan $ 135,309
Payable upon return of securities on loan $(135,309)
(C)The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 5.25%.
(D)Class-B has a contingent deferred sales charge. For a description of a
possible redemption charge, see the notes to the financial statements.
(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 calcluated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%.
ADR--American Depositary Receipt
Cl--Class
The accompanying notes are an integral part of the financial statements.
MID CAP VALUE FUND
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS -- 94.3%
BASIC MATERIALS -- 10.1%
Crompton & Knowles 668,800 $ 10,534
IMC Global 574,900 11,750
Millenium Chemicals 409,400 8,137
Reynolds Metals 86,100 4,160
Southdown 113,200 6,077
------------
40,658
------------
CAPITAL GOODS -- 11.5%
American Standard* 241,900 8,315
Case Equipment 261,700 6,641
Howmet International* 250,800 3,590
Newpark Resources* 608,800 4,414
Premark International 162,100 5,339
Republic Services, Cl A* 470,100 7,610
U.S. Filter* 173,700 5,320
Vishay Intertechnology* 335,275 4,882
------------
46,111
------------
CONSUMER CYCLICALS -- 10.7%
Borders Group* 433,300 6,093
Brunswick 600,700 11,451
Fruit of Loom, Cl A* 414,500 4,300
Furniture Brands International* 557,200 12,328
Saks* 130,300 3,388
Stewart Enterprises, Cl A 334,400 5,371
------------
42,931
------------
CONSUMER STAPLES -- 5.7%
Canandaigua Brands, Cl A* 91,200 4,594
CBRL Group 418,100 7,526
Dole Food 243,600 7,247
Olsten 585,900 3,625
------------
22,992
------------
ENERGY -- 4.9%
Rowan* 390,800 4,958
Santa Fe International 295,400 5,520
Transocean Offshore 217,200 6,258
Varco International* 260,700 2,900
------------
19,636
------------
FINANCIALS -- 22.0%
Avis Rent-A-Car* 296,100 8,198
Dime Bancorp 336,400 7,800
First American of Tennesse 267,100 9,849
Glimcher Realty Trust 296,100 4,256
Golden West Financial 92,000 8,786
Heller Financial 274,800 6,458
Meditrust 401,500 4,994
Mony Group 267,600 6,657
Progressive 41,700 5,984
Simon Property Group 267,200 7,331
TCF Financial 96,600 2,512
Trizec Hahn 209,000 3,840
UnionBanCal 172,500 5,876
Waddell & Reed Financial, Cl A 276,200 5,662
------------
88,203
------------
25 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
OPERATIONS FOR THE SIX MONTHS ENDED MARCH 31, 1999, (UNAUDITED)
IN THOUSANDS
MID CAP VALUE FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
HEALTH CARE -- 7.1%
Columbia/HCA Healthcare 417,600 $ 7,908
Foundation Health Systems, Cl A* 750,700 9,149
Integrated Health Services 1,172,500 6,449
Med partners* 1,042,900 4,954
------------
28,460
------------
TECHNOLOGY -- 8.5%
Adaptec* 251,900 5,747
Cadence Design Systems* 284,700 7,331
Cambridge Technology Partners* 348,600 4,837
Gartner Group, Cl A* 376,100 8,486
Maxtor Corp* 955,600 6,749
Quantum* 60,800 1,094
------------
34,244
------------
TRANSPORTATION -- 4.3%
CNF Transportation 311,500 11,779
Northwest Airlines, Cl A* 199,800 5,557
------------
17,336
------------
UTILITIES -- 9.5%
DPL 351,200 5,795
KN Energy 350,700 6,992
MCN Energy (A) 460,600 7,398
Pacificorp 385,200 6,645
Pinnacle West Capital 183,900 6,689
Scana 209,800 4,550
------------
38,069
------------
TOTAL COMMON STOCKS
(Cost $423,030) 378,640
------------
RELATED PARTY MONEY MARKET FUND -- 1.6%
First American Prime Obligations
Fund (B) 6,463,903 6,464
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $6,464) 6,464
------------
TOTAL INVESTMENTS -- 95.9%
(Cost $429,494) 385,104
------------
OTHER ASSETS AND LIABILITIES, NET -- 4.1% (C) 16,570
------------
NET ASSETS:
Portfolio Capital--Class-A
($.0001 par value--2 billion authorized)
based on 1,880,411 outstanding shares 35,961
Portfolio Capital--Class-B
($.0001 par value--2 billion authorized)
based on 1,956,544 outstanding shares 40,109
Portfolio Capital--Class-C
($.0001 par value--2 billion authorized)
based on 1,655 outstanding shares 21
Portfolio Capital--Class-Y
($.0001 par value--2 billion authorized)
based on 27,163,870 outstanding shares 487,899
Undistributed net investment income 88
Accumulated net realized loss on investments (118,014)
Net unrealized depreciation of investments (44,390)
------------
TOTAL NET ASSETS -- 100.0% $ 401,674
------------
MID CAP VALUE FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
Net asset value and redemption
price per share--Class-A $ 12.95
Maximum sales charge of 5.25% (D) 0.72
------------
Offering price per share--Class-A $ 13.67
------------
Net asset value and offering
price per share--Class-B (E) $ 12.68
------------
Net asset value per share--Class-C (F) $ 12.93
Maximum sales charge of 1.00% (G) 0.13
------------
Offering price per share--Class-C $ 13.06
------------
Net asset value, offering price, and
redemption price per share--Class-Y $ 12.98
------------
* Non-income producing security
(A)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 the program or other "qualified
institutional investors".
(B)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.
(C)Other assets and liabilities representing greater than five percent of total
net assets include the following (000):
Cash collateral received for securities on loan $ 92,284
Payable upon return of securities on loan $(92,284)
(D)The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 5.25%.
(E)Class-B has a contingent deferred sales charge. For a description of a
possible redemption charge, see the notes to the financial statements.
(F)Class-C has a contingent deferred sales charge. For a description of a
possible redemption charge, see the notes to the financial statements.
(G)The offering price is calcluated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%.
Cl--Class
The accompanying notes are an integral part of the financial statements.
26 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
MID CAP FUNDS
STATEMENTS OF
OPERATIONS FOR THE SIX MONTHS ENDED MARCH 31, 1999, (UNAUDITED)
IN THOUSANDS
MID CAP MID CAP
GROWTH FUND VALUE FUND
- --------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest $ 675+ $ 372+
Dividends 490 3,022
- --------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 1,165 3,394
================================================================================
EXPENSES:
Investment advisory fees 1,118 1,476
Less: Waiver of investment advisory fees (8) (88)
Administrator fees 174 230
Transfer agent fees 31 171
Custodian fees 48 63
Directors' fees 3 4
Registration fees 6 17
Professional fees 4 5
Printing 10 13
Distribution fees - class-A 244 37
Distribution fees - class-B -- 154
Other 4 4
- --------------------------------------------------------------------------------
TOTAL NET EXPENSES 1,634 2,086
================================================================================
Investment income (loss) - net (469) 1,308
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS (LOSSES)
ON INVESTMENTS - NET:
Net realized gain (loss) on investments 19,641 (108,029)
Net realized loss on closing and expiration
of options written and purchased -- (6,875)
Net change in unrealized appreciation of investments 43,237 143,724
- --------------------------------------------------------------------------------
NET GAIN ON INVESTMENTS 62,878 28,820
================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 62,409 $ 30,128
================================================================================
+ Includes income from securities lending program. See the Notes to the
Financial Statements for additional information.
The accompanying notes are an integral part of the financial statements.
27 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
CHANGES IN NET ASSETS IN THOUSANDS
<TABLE>
<CAPTION>
MID CAP MID CAP
GROWTH FUND VALUE FUND
- ----------------------------------------------------------------------------------------------------------------------------------
10/1/98 10/1/97 10/1/98 10/1/97
to to to to
3/31/99 9/30/98 3/31/99 9/30/98
- ----------------------------------------------------------------------------------------------------------------------------------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income (loss) - net $ (469) $ (1,686) $ 1,308 $ 3,925
Net realized gain (loss) on investments 19,641 46,099 (108,029) 97,245
Net realized gain (loss) on closing and expiration of options written and purchased -- -- (6,875) 2,981
Net change in unrealized appreciation (depreciation) of investments 43,237 (82,457) 143,724 (302,434)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 62,409 (38,044) 30,128 (198,283)
- ----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class-A -- -- (95) (127)
Class-B -- -- (44) (15)
Class-C -- -- -- --
Class-Y -- -- (1,510) (3,504)
Net realized gain on investments:
Class-A (34,559) (27,994) (6,521) (4,144)
Class-B -- Piper -- (120) -- --
Class-B -- FAIF (5) -- (6,711) (4,617)
Class-C -- -- -- --
Class-Y (14,259) (5,981) (74,784) (63,590)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS (48,823) (34,095) (89,665) (75,997)
==================================================================================================================================
CAPITAL SHARE TRANSACTIONS(1):
Class-A
Proceeds from sales 6,112 23,463 7,075 63,542
Reinvestment of distributions 33,572 27,318 6,483 4,045
Payments for redemptions (46,933) (81,673) (14,372) (57,261)
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from class-A transactions (7,249) (30,892) (814) 10,326
- ----------------------------------------------------------------------------------------------------------------------------------
Class-B
Proceeds from sales -- Piper -- 612 -- --
Proceeds from sales -- FAIF 186 19 682 13,479
Reinvestment of distributions -- Piper -- 120 -- --
Reinvestment of distribution -- FAIF 5 -- 6,590 4,481
Payments for redemptions -- Piper -- (1,748) -- --
Payment for redemptions -- FAIF -- -- (9,365) (5,377)
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from class-B transactions 191 (997) (2,093) 12,583
- ----------------------------------------------------------------------------------------------------------------------------------
Class-C
Proceeds from sales 43 -- 21 --
Reinvestment of distributions -- -- -- --
Payments for redemptions -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from class-C transactions 43 -- 21 --
- ----------------------------------------------------------------------------------------------------------------------------------
Class-Y
Proceeds from sales 162,082 110,039 124,579 258,693
Reinvestment of distributions 13,236 5,724 55,693 46,245
Payments for redemptions (66,373) (84,799) (194,753) (156,153)
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from class-Y transactions 108,945 30,964 (14,481) 148,785
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share
transactions 101,930 (925) (17,367) 171,694
- ----------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 115,516 (73,064) (76,904) (102,586)
NET ASSETS AT BEGINNING OF PERIOD 262,136 335,200 478,578 581,164
==================================================================================================================================
NET ASSETS AT END OF PERIOD (2) $ 377,652 $ 262,136 $ 401,674 $ 478,578
==================================================================================================================================
</TABLE>
(1)See note 4 in the notes to financial statements for additional information.
(2)Includes undistributed net investment income (loss) (000) of: $(469) and $0
for Mid Cap Growth Fund and $88 and $429 for Mid Cap Value Fund at March 31,
1999, and September 30, 1998, respectively.
The accompanying notes are an integral part of the financial statements.
28 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
MID CAP FUNDS
THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY.
29 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING, THROUGHOUT THE PERIODS
ENDED SEPTEMBER 30, UNLESS OTHERWISE INDICATED
<TABLE>
<CAPTION>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS
VALUE NET GAINS OR FROM NET DISTRIBUTIONS
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM
OF PERIOD INCOME (LOSS) INVESTMENTS INCOME CAPITAL GAINS
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
MID CAP GROWTH FUND(1)
Class-A(2)
1999*(unaudited) $11.80 $(0.02) $ 2.59 $ -- $(2.26)
1998 15.25 (0.09) (1.80) -- (1.56)
1997 13.86 (0.08) 2.72 -- (1.25)
1996 12.97 (0.05) 2.18 -- (1.24)
1995 9.63 (0.06) 3.40 -- --
1994 9.87 (0.04) (0.20) -- --
Class-B - FAIF
1999*(unaudited) $11.78 $(0.03) $ 2.54 $ -- $(2.26)
1998(3) 13.86 (0.01) (2.07) -- --
Class-B - Piper
1998(4) $15.20 $(0.09) $ 1.02 $ -- $(1.56)
1997(5) 12.54 (0.10) 2.76 -- --
Class-C
1999(6)(unaudited) $12.43 $(0.03) $ 1.95 $ -- $(2.26)
Class-Y
1999*(unaudited) $11.87 $(0.01) $ 2.60 $ -- $(2.26)
1998 15.29 (0.04) (1.82) -- (1.56)
1997(5) 12.54 (0.01) 2.76 -- --
- ----------------------------------------------------------------------------------------------------
MID CAP VALUE FUND
Class-A
1999*(unaudited) $15.04 $ 0.04 $ 1.27 $(0.05) $(3.35)
1998 24.19 0.07 (6.41) (0.07) (2.74)
1997 20.41 0.11 6.98 (0.11) (3.20)
1996 17.89 0.20 3.94 (0.20) (1.42)
1995 17.30 0.35 1.60 (0.34) (1.02)
1994 15.81 0.28 2.52 (0.28) (1.03)
Class-B
1999*(unaudited) $14.80 $ 0.02 $ 1.23 $(0.02) $(3.35)
1998 23.96 (0.01) (6.41) -- (2.74)
1997 20.31 0.02 6.85 (0.02) (3.20)
1996 17.83 0.09 3.91 (0.10) (1.42)
1995 17.29 0.29 1.51 (0.24) (1.02)
1994(7) 16.51 0.01 0.85 (0.08) --
Class-C
1999(6)(unaudited) $13.69 $ 0.03 $(0.76) $(0.03) $ --
Class-Y
1999*(unaudited) $15.05 $ 0.05 $ 1.29 $(0.06) $(3.35)
1998 24.21 0.14 (6.43) (0.13) (2.74)
1997 20.43 0.16 6.98 (0.16) (3.20)
1996 17.89 0.25 3.95 (0.24) (1.42)
1995 17.30 0.38 1.61 (0.38) (1.02)
1994(8) 16.34 0.22 0.96 (0.22) --
- ----------------------------------------------------------------------------------------------------
</TABLE>
+ Returns are for the period indicated and have not been annualized.
* For the six month period ended March 31. All ratios for the period have been
annualized.
(A)Excluding sales charges.
(1)The financial highlights for the Mid Cap Growth Fund as set forth herein
include the historical financial highlights of the Piper Emerging Growth Fund
class-A shares and class-Y shares. The assets of the Piper Emerging Growth
Fund were acquired by Mid Cap Growth Fund on August 7, 1998. In connection
with such acquisition, (i) class-A shares of the Piper Emerging Growth Fund
were exchanged for class-A shares of the Mid Cap Growth Fund, (ii) class-Y
shares of the Piper Emerging Growth Fund were exchanged for class-Y shares of
the Mid Cap Growth Fund. On August 7, 1998, the funds advisor changed from
Piper Capital Management, Inc. to U.S. Bank N.A.
(2)Per share amounts have been adjusted to reflect the effect of the stock
dividend declared on December 23, 1995.
(3)Class-B shares for FAIF have been offered since August 7, 1998. All ratios
for the period have been annualized.
(4)Effective April 28, 1998 all shareholders were exchanged into class-A.
Class-B share activity was discontinued. All ratios for the period have been
annualized.
(5)Class-B and class-Y shares have been offered since February 18, 1997. All
ratios for the period have been annualized.
(6)For the six month period ended March 31. Class-C shares have been offered
since February 1, 1999. All ratios for the period have been annualized.
(7)Class-B shares have been offered since August 15, 1994. All ratios for the
period have been annualized.
(8)Class-Y shares have been offered since February 4, 1994. All ratios for the
period have been annualized.
30 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
MID CAP FUNDS
<TABLE>
<CAPTION>
RATIO OF
RATIO OF NET EXPENSES TO
NET ASSET RATIO OF INVESTMENT AVERAGE
VALUE NET ASSETS EXPENSES TO INCOME (LOSS) NET ASSETS PORTFOLIO
END OF TOTAL END OF AVERAGE TO AVERAGE (EXCLUDING TURNOVER
PERIOD RETURN (A) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) RATE
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$12.11 23.81%+ $189,025 1.12% (0.39)% 1.12% 34%
11.80 (13.05) 188,763 1.18 (0.60) 1.34 39
15.25 21.04 274,799 1.23 (0.55) 1.39 51
13.86 17.84 303,769 1.18 (0.41) 1.37 44
12.97 34.68 252,632 1.24 (0.51) 1.42 33
9.63 (2.38) 224,188 1.24 (0.38) 1.44 31
$12.03 23.28%+ $ 214 1.87% (1.13)% 1.87% 34%
11.78 (15.01)+ 17 1.87 (1.12) 1.87 39
$14.57 7.77%+ $ -- 1.85% (1.33)% 1.85% 29%
15.20 21.21+ 1,028 1.85 (1.16) 1.85 51
$12.09 (2.74)%+ $ 44 1.87% (1.12)% 1.87% 34%
$12.20 23.84%+ $188,369 0.87% (0.14)% 0.87% 34%
11.87 (12.79) 73,356 0.87 (0.27) 0.87 39
15.29 21.93+ 59,393 0.87 (0.16) 0.87 51
- ----------------------------------------------------------------------------------------------------------------
$12.95 7.60%+ $ 24,346 1.15% 0.48% 1.19% 55%
15.04 (28.83) 29,261 1.14 0.43 1.14 135
24.19 39.93 35,207 1.14 0.58 1.15 82
20.41 25.23 17,987 1.13 1.06 1.13 143
17.89 12.63 11,609 1.09 2.08 1.20 72
17.30 18.70 7,333 0.81 1.88 1.23 116
$12.68 7.30%+ $ 24,807 1.90% (0.28)% 1.94% 55%
14.80 (29.40) 31,276 1.89 (0.31) 1.89 135
23.96 38.81 36,649 1.90 (0.18) 1.90 82
20.31 24.35 12,847 1.88 0.25 1.88 143
17.83 11.64 4,847 1.88 1.22 1.95 72
17.29 5.22+ 370 1.68 0.47 2.03 116
$12.93 (5.36)%+ $ 21 1.90% (0.05)% 1.94% 55%
$12.98 7.84%+ $352,500 0.90% 0.71% 0.94% 55%
15.05 (28.65) 418,041 0.89 0.69 0.89 135
24.21 40.25 509,308 0.89 0.82 0.90 82
20.43 25.61 247,828 0.88 1.35 0.88 143
17.89 12.84 201,786 0.88 2.30 0.95 72
17.30 7.31+ 128,806 0.79 1.93 1.03 116
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
31 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
MICRO CAP VALUE FUND
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS -- 90.9%
BASIC MATERIALS -- 1.1%
BWay* 59,400 $ 783
CPAC 9,800 72
------------
855
------------
CAPITAL GOODS -- 19.7%
AFC Cable Systems* 45,000 1,339
American Aircarriers Support* 60,000 540
BOLDER Technologies* 100,000 862
Bridgeport Machines* 88,000 544
Brown & Sharpe Manufacturing* 100,000 494
Catalytica* 70,000 770
Dayton Superior, Cl A* 75,500 1,312
L.B. Foster, Cl A* 160,000 740
Lindberg 30,800 271
LMI Aerospace* 105,000 604
MagneTek* 170,000 1,424
Moog, Cl A* 62,400 1,903
Northwest Pipe* 50,100 827
Park Ohio Holdings* 73,535 1,029
Shelby Williams Industries 62,800 601
Supreme Industries 76,745 566
Thomas Industries 41,750 783
------------
14,609
------------
CONSUMER CYCLICALS -- 21.3%
Bonded Motors* 74,600 182
Borg Warner Security* 100,000 1,675
Dura Automotive Systems* 60,720 1,715
Edelbrock* 37,000 555
Finlay Enterprises* 55,900 604
Friedman's, Cl A 30,800 277
Gildan Activewear* 80,000 980
Hampshire Group Limited* 34,100 273
Huffy 48,300 580
K-Swiss, Cl A 13,400 338
Matthews International, Cl A 40,000 1,095
Piercing Pagoda* 32,150 287
Quaker Fabric* 80,000 445
Racing Champions* 81,000 891
Simpson Manufacturing* 14,300 576
Stanley Furniture* 60,000 1,170
Steven Madden Limited* 100,000 844
Synthetic Industries* 49,200 821
TearDrop Golf* 100,600 498
Total Containment* 56,500 307
TRO Learning* 117,700 706
Video Update, Cl A* 175,125 148
Walbro* 67,500 607
Whitehall Jewelers* 19,100 294
------------
15,868
------------
CONSUMER STAPLES -- 2.5%
Buenos Aires Embotelladora S.A., ADR* 2,824 --
Drug Emporium* 205,000 987
Mac-Gray* 48,400 445
Pepsi-Cola Puerto Rico Bottling, Cl B* 10,527 63
Performance Food Group* 14,000 367
------------
1,862
------------
MICRO CAP VALUE FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
ENERGY -- 3.4%
Basin Exploration* 40,000 $ 555
Bellwether Exploration* 94,500 337
Callon Petroleum* 40,000 445
Forest Oil* 85,220 639
Veritas DGC* 37,800 536
------------
2,512
------------
FINANCIALS -- 13.3%
Chelsea GCA Realty 27,100 755
Dain Rauscher 8,200 279
Farm Family Holdings* 30,000 952
First Republic Bank* 70,000 1,689
LaSalle Re Holdings 22,400 330
Lexington Corporate Properties 53,000 590
Penn Treaty American* 45,000 1,117
Philadelphia Consolidated Holding* 55,000 1,107
SCPIE Holdings 15,000 408
Shurgard Storage Centers 14,100 356
Walden Residential Properties 34,000 599
Webster Financial 35,800 1,034
Willis Lease Finance* 40,200 703
------------
9,919
------------
HEALTH CARE -- 4.6%
America Service Group* 95,000 1,116
Collaborative Clinical Research* 160,000 680
Diagnostic Health Services* 224,500 274
Minntech 5,800 73
Nu-Med* 731 --
PolyMedica* 79,000 592
Spacelabs Medical* 40,000 673
------------
3,408
------------
TECHNOLOGY -- 17.3%
Alpha Industries* 13,650 251
ANADIGICS* 7,100 125
Applied Science & Technology* 50,000 628
Aris Corp* 34,800 291
BrightStar Information Technology* 108,600 421
Ciprico* 117,500 969
Comdial* 89,600 582
Corsair Communications* 138,500 710
Evolving Systems* 200,000 975
FEI* 100,000 838
Fieldworks* 176,000 424
Fourth Shift* 58,200 313
Gatefield* 194,850 170
Government Technology Services* 175,000 613
Inprise* 185,000 717
Kofax Image Products* 147,500 1,328
Olicom A/S* 58,300 175
P-Com* 25,100 191
Periophonics* 50,000 316
Pioneer-Standard Electronics 55,000 361
Pomeroy Computer Resources* 39,200 510
Rainbow Technology* 40,000 400
Sapiens International* 45,900 479
Spectrian* 17,300 203
Triple P N.V.* (F) 183,500 505
Wall Data* 25,000 359
------------
12,854
------------
32 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
SMALL CAP FUNDS
MICRO CAP VALUE FUND (CONTINUED)
DESCRIPTION SHARES/PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
TRANSPORTATION -- 1.2%
Nordic American Tanker Shipping 75,000 $ 863
------------
UTILITIES -- 6.5%
El Paso Electric* 126,800 967
Midcoast Energy Resources 26,262 407
TNP Enterprises 30,000 863
Trigen Energy 54,700 749
Unisource Energy Holding* 165,000 1,825
------------
4,811
------------
TOTAL COMMON STOCKS
(Cost $69,928) 67,561
------------
WARRANT -- 0.0%
Sound Advice* 2,025 --
------------
TOTAL WARRANT
(Cost $0) --
------------
CONVERTIBLE BONDS -- 1.7%
Complete Management, 71.4286 shares
8.000%, 08/15/03 (A) $ 590 46
Complete Management, 62.5000 shares
8.000%, 12/15/03 (A) 300 24
Drug Emporium, 65.1466 shares
7.750%, 10/01/14 921 672
Leasing Solutions, 28.6533 shares
6.875%, 10/01/03 250 29
Titan, 285.7143 shares
8.250%, 11/01/03 360 528
------------
TOTAL CONVERTIBLE BONDS
(Cost $2,204) 1,299
------------
RELATED PARTY MONEY MARKET FUND -- 6.8%
First American Prime Obligations
Fund (B) 5,026,223 5,026
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $5,026) 5,026
------------
TOTAL INVESTMENTS -- 99.4%
(Cost $77,158) 73,886
------------
OTHER ASSETS AND LIABILITIES, NET -- 0.6% (C) 433
------------
MICRO CAP VALUE FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital--Class-A
($.0001 par value--2 billion authorized)
based on 201,450 outstanding shares $ 1,939
Portfolio Capital--Class-B
($.0001 par value--2 billion authorized)
based on 29,594 outstanding shares 286
Portfolio Capital--Class-Y
($.0001 par value--2 billion authorized)
based on 12,276,208 outstanding shares 61,663
Undistributed net investment income 30
Accumulated net realized gain on investments 13,673
Net unrealized depreciation of investments (3,272)
------------
TOTAL NET ASSETS -- 100.0% $ 74,319
------------
Net asset value and redemption
price per share--Class-A $ 5.95
Maximum sales charge of 5.25% (D) 0.33
------------
Offering price per share--Class-A $ 6.28
------------
Net asset value and offering
price per share--Class-B (E) $ 5.83
------------
Net asset value, offering price, and
redemption price per share--Class-Y $ 5.94
------------
* Non-income producing security
(A)Security in default as of April 1, 1999.
(B)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.
(C)Other assets and liabilities representing greater than five percent of total
net assets include the following (000):
Cash collateral received for securities on loan $ 4,269
Payable upon return of securities on loan $(4,269)
(D)The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 5.25%.
(E)Class-B has a contingent deferred sales charge. For a description of a
possible redemption charge, see the notes to the financial statements.
(F)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 the program or other "qualified
institutional investors".
ADR--American Depositary Receipt
Cl--Class
The accompanying notes are an integral part of the financial statements.
33 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
REGIONAL EQUITY FUND
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS -- 94.5%
BASIC MATERIALS -- 1.0%
A.M. Castle 70,000 $ 844
Hawkins Chemical 140,000 1,365
------------
2,209
------------
CAPITAL GOODS -- 26.0%
Alliant Techsystems* 107,800 8,375
Applied Power, Cl A 235,000 6,404
Ballantyne of Omaha* 345,450 2,591
BMC Industries 187,100 830
BOLDER Technologies* 170,200 1,468
Brady 32,500 680
Donaldson 300,000 5,400
Idex 70,000 1,649
Pentair 190,100 6,416
SPX* 65,000 3,278
Tower Automotive* 402,100 7,489
Valmont Industries 190,000 2,636
Varlen 392,000 8,624
------------
55,840
------------
CONSUMER CYCLICALS -- 15.5%
Alternate Postal Delivery* (A) 87,900 88
Ashworth* 330,000 1,155
Bell & Howell* 115,000 3,371
Borg Warner Security* 89,300 1,496
Department 56* 190,000 5,783
Dura Automotive Systems* 251,700 7,111
Inacom* 260,000 2,015
Lakes Gaming* 40,000 327
Park Place Entertainment* 180,000 1,361
Regis 300,000 7,988
Sport-Haley* (A) 313,000 2,543
------------
33,238
------------
CONSUMER STAPLES -- 11.9%
Buffets* 496,800 4,906
International Multifoods 210,600 4,910
Lodgenet Entertainment* 360,000 2,363
Merrill 562,000 7,517
Michael Foods 302,600 5,768
------------
25,464
------------
ENERGY -- 3.5%
Basin Exploration* 170,000 2,359
Evergreen Resources* 51,000 1,020
Forest Oil* 176,000 1,320
Mallon Resources* 162,000 1,215
Veritas DGC* 110,800 1,572
------------
7,486
------------
REGIONAL EQUITY FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
FINANCIALS -- 14.1%
Amerin* 410,000 $ 8,328
ARM Financial Group, Cl A 53,400 798
Community First Bankshares 455,000 9,100
Dain Rauscher 65,000 2,210
Metris 90,000 3,634
TCF Financial 235,000 6,110
------------
30,180
------------
HEALTH CARE -- 6.6%
ATS Medical* 255,600 1,917
Empi* 280,000 6,055
Lifecore Biomedical* 483,500 4,200
Minntech 14,200 179
Orphan Medical* 162,800 1,180
Rehabilicare* 225,000 591
------------
14,122
------------
TECHNOLOGY -- 15.6%
Aetrium* (A) 580,000 3,770
Alternative Resources* 244,900 1,561
Communications Systems 386,000 3,667
Evolving Systems* 308,400 1,503
Innovex 200,000 2,675
Mosaix* (A) 535,800 4,487
National Computer Systems 258,100 6,323
Norstan* (A) 510,000 4,718
System Software Associates 642,100 1,445
TSI (A) 420,000 3,413
------------
33,562
------------
UTILITIES -- 0.3%
Western Gas Resources 90,000 675
------------
TOTAL COMMON STOCKS
(Cost $174,241) 202,776
------------
RELATED PARTY MONEY MARKET FUND -- 0.5%
First American Prime Obligations
Fund (B) 923,212 923
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $923) 923
------------
TOTAL INVESTMENTS -- 95.0%
(Cost $175,164) 203,699
------------
OTHER ASSETS AND LIABILITIES, NET -- 5.0% (C) 10,811
------------
34 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
SMALL CAP FUNDS
REGIONAL EQUITY FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital--Class-A
($.0001 par value--2 billion authorized)
based on 1,319,937 outstanding shares $ 18,610
Portfolio Capital--Class-B
($.0001 par value--2 billion authorized)
based on 1,557,938 outstanding shares 26,460
Portfolio Capital--Class-Y
($.0001 par value--2 billion authorized)
based on 10,664,068 outstanding shares 131,971
Accumulated net investment loss (177)
Accumulated net realized gain on investments 9,111
Net unrealized appreciation of investments 28,535
------------
TOTAL NET ASSETS -- 100.0% $ 214,510
------------
Net asset value and redemption
price per share--Class-A $ 15.84
Maximum sales charge of 5.25% (D) 0.88
------------
Offering price per share--Class-A $ 16.72
------------
Net asset value and offering price
per share--Class-B (E) $ 15.34
------------
Net asset value, offering price, and
redemption price per share--Class-Y $ 15.91
------------
* Non-income producing security
(A)Investments represent five percent or more of the outstanding voting
securities of the issuer, and therefore the issuer is or was an affiliate, as
defined in the Investment Company Act of 1940 at or during the period ended
March 31, 1999. See activity below.
(B)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.
(C)Other assets and liabilities representing greater than five percent of total
net assets include the following (000):
Cash collateral received for securities on loan $ 23,793
Payable upon return of securities on loan $(23,793)
(D)The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 5.25%.
(E)Class-B has a contingent deferred sales charge. For a description of a
possible redemption charge, see the notes to the financial statements.
Cl--Class
The activity for investments in Common Stocks of Affiliate is as follows:
Description Shares at Shares at
09/30/98 03/31/99 Difference Dividends Realized G/L
- --------------------------------------------------------------------------------
Aetrium 686,000 580,000 106,000 -- (718,925)
Alternate Postal
Delivery 210,000 87,900(+) 122,100 -- (523,559)
Mosaix 535,800 535,800 -- -- --
Norstan 551,300 510,000(+) 41,300 -- (118,567)
Sport Haley 313,000 313,000 -- -- --
TSI 669,300 420,000(+) 249,300 34,029 1,308,906
- --------------------------------------------------------------------------------
2,965,400 2,446,700 518,700 34,029 (52,145)
+ At March 31, 1999 these issuers were not considered affiliates.
The accompanying notes are an integral part of the financial statements.
SMALL CAP GROWTH FUND
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS -- 93.2%
BASIC MATERIALS -- 4.3%
Cambrex 129,100 $ 2,856
CUNO* 128,700 1,802
OM Group 86,800 2,864
Spartech 122,800 2,533
------------
10,055
------------
CAPITAL GOODS -- 3.6%
BE Aerospace* 105,800 1,561
Bolder Technologies* 129,500 1,117
Quanta Services* 79,400 2,020
Sanmina* 59,400 3,787
------------
8,485
------------
COMMUNICATION SERVICES -- 2.0%
NTL* 57,700 4,695
------------
CONSUMER CYCLICALS -- 12.8%
99 Cents Only Stores* 91,612 3,888
Autobytel.com* 21,300 892
Autoweb.com* 35,800 1,275
Cheap Tickets* 48,000 1,614
Columbia Sportswear* 133,000 2,610
Fred's Incorporated, Cl A 202,700 2,230
G. & K. Services 70,400 3,252
Garden Fresh Restaurant* 68,500 976
Getty Images Inc* 131,300 2,757
Linens N Things* 90,600 4,111
O'Reilly Automotive* 88,100 3,942
Valley Media* 60,700 1,381
Wackenhut Corrections* 72,200 1,394
------------
30,322
------------
CONSUMER STAPLES -- 14.2%
Capstar Broadcasting Partners* 152,700 3,503
Carriage Services* 151,200 2,287
Cinar Films, Cl B* 119,900 2,758
Consolidated Products* 192,400 3,379
Duane Reade* 131,600 3,668
Education Management* 148,300 4,560
P.F Changs China Bistro* 132,700 4,047
Strayer Education 96,600 3,574
U.S. Foodservice* 124,400 5,785
------------
33,561
------------
ENERGY -- 2.3%
Evergreen Resources* 142,100 2,842
Newfield Exploration* 116,800 2,643
------------
5,485
------------
FINANCIALS -- 11.4%
Affiliated Managers Group* 74,300 1,932
Alexandria Real Estate Equities 73,800 1,951
ARM Financial Group, Cl A 117,200 1,751
Centennial Bancorp* 128,740 1,609
CMAC Investment 67,300 2,625
Commerce Bancorp New Jersey 86,767 3,579
35 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
SMALL CAP GROWTH FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Community First Bankshares 128,300 $ 2,566
ESG Re Limited 116,900 1,856
Financial Federal* 125,300 2,381
Firstmerit 110,000 2,833
Healthcare Financial Partners* 87,000 2,273
West Coast Bancorp 88,600 1,656
------------
27,012
------------
HEALTH CARE -- 15.0%
Algos Pharmaceuticals* 50,700 1,248
Anesta* 78,300 1,767
ATS Medical* 227,000 1,703
Barr Laboratories* 65,300 1,992
Cyberonics* 122,000 1,159
Express Scripts, Cl A* 78,200 6,720
ICON PLC, ADR* 57,200 829
Kendle International* 93,100 1,874
Medical Manager* 100,100 2,315
Osteotech* 105,700 3,633
Perclose* 99,700 3,091
Priority Healthcare Cl B* 59,700 2,701
Qiagen* 55,000 3,747
United Payors & United Providers* 114,600 2,643
------------
35,422
------------
TECHNOLOGY -- 26.4%
Advanced Energy Industries* 108,000 2,545
Applied Micro Circuits* 65,500 2,800
Aspect Development* 138,800 3,227
Com21* 135,900 3,567
Concentric Network* 30,700 2,295
Covad Communications Group* 33,300 2,189
Critical Path* 9,800 755
E-Tek Dynamics* 56,100 2,013
Excel Switching* 103,100 2,165
Information Advantage* 152,700 1,012
International Telecommunications
Data Systems* 109,600 1,356
L-3 Communications* 58,500 2,706
Mercury Interactive* 106,500 3,794
Micrel* 83,100 4,160
Micromuse* 84,200 3,873
Miningo.com* 3,500 313
Multex.com* 27,100 1,694
National Computer Systems 127,400 3,121
Netgravity* 56,100 2,321
Pegasus Systems* 55,400 2,209
Peregrine Systems* 63,000 2,118
PMC-Sierra* 44,200 3,146
PRI Automation* 85,400 1,793
Secure Computing* 131,300 1,379
Transwitch* 93,600 4,235
Whittman-Hart* 79,900 1,718
------------
62,504
------------
TRANSPORTATION -- 1.2%
C.H. Robinson Worldwide 113,000 2,874
------------
TOTAL COMMON STOCKS
(Cost $199,313) 220,415
------------
RELATED PARTY MONEY MARKET FUND -- 10.8%
First American Prime Obligations
Fund (A) 25,640,015 25,640
------------
SMALL CAP GROWTH FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $25,640) $ 25,640
------------
TOTAL INVESTMENTS -- 104.0%
(Cost $224,953) 246,055
------------
OTHER ASSETS AND LIABILITIES, NET -- (4.0%) (B) (9,571)
------------
NET ASSETS:
Portfolio Capital--Class-A
($.0001 par value--2 billion authorized)
based on 2,120,830 outstanding shares 22,152
Portfolio Capital--Class-B
($.0001 par value--2 billion authorized)
based on 121,464 outstanding shares 1,670
Portfolio Capital--Class-C
($.0001 par value--2 billion authorized)
based on 4,485 outstanding shares 66
Portfolio Capital--Class-Y
($.0001 par value--2 billion authorized)
based on 13,599,829 outstanding shares 178,235
Accumulated net investment loss (70)
Accumulated net realized gain on investments 13,329
Net unrealized appreciation of investments 21,102
------------
TOTAL NET ASSETS -- 100.0% $ 236,484
------------
Net asset value and redemption
price per share--Class-A $ 14.82
Maximum sales charge of 5.25% (C) 0.82
------------
Offering price per share--Class-A $ 15.64
------------
Net asset value and offering
price per share--Class-B (D) $ 14.27
------------
Net asset value per share--Class-C (E) $ 14.81
Maximum sales charge of 1.00% (F) 0.15
------------
Offering price per share--Class-C $ 14.96
------------
Net asset value, offering price, and
redemption price per share--Class-Y $ 14.94
------------
*Non-income producing security
(A)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.
(B)Other assets and liabilities representing greater than five percent of total
net assets include the following (000):
Cash collateral received for securities on loan $ 49,691
Payable upon return of securities on loan $(49,691)
(C)The offering price is calcluated by dividing the net asset value by 1 minus
the maximum sales charge of 5.25%.
(D)Class-B has a contingent deferred sales charge. For a description of a
possible redemption charge, see the notes to the financial statements.
(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 calcluated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%.
ADR--American Depositary Receipt
Cl--Class
PLC--Public Limited Company
The accompanying notes are an integral part of the financial statements.
36 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
SMALL CAP FUNDS
SMALL CAP VALUE FUND
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS -- 88.7%
BASIC MATERIALS -- 0.8%
BWay* 177,000 $ 2,334
CPAC 35,700 263
------------
2,597
------------
CAPITAL GOODS -- 16.9%
AFC Cable Systems* 232,600 6,920
Alliant Techsystems* 66,300 5,151
Aqua Alliance* 1,362,300 3,065
Bridgeport Machines* 158,600 981
Catalytica* 682,033 7,502
Dayton Superior, CL A* 164,300 2,855
Dupont Photomasks* 17,900 709
L.B. Foster, Cl A* 253,800 1,174
MagneTek* 321,487 2,692
Moog, Cl A* 259,200 7,906
Newpark Resources* 479,600 3,477
Northwest Pipe* 180,000 2,970
Park Ohio Holdings* 227,300 3,182
Shelby Williams Industries 76,050 727
Thomas Industries 139,650 2,618
Tredegar Industries 58,400 1,807
U.S. Filter* 29,211 895
------------
54,631
------------
CONSUMER CYCLICALS -- 19.7%
Acxiom* 96,140 2,548
Applied Graphics Technologies* 190,500 1,429
Bell & Howell* 195,600 5,734
Bonded Motors* 71,400 174
Borg Warner Security* 461,700 7,733
DR Horton 173,475 2,906
Dura Automotive Systems* 118,880 3,358
Edelbrock* 106,200 1,593
Finish Line, Cl A* 196,700 2,532
Hampshire Group Limited* 55,100 441
Huffy 106,000 1,272
Inacom* 160,852 1,247
K-Swiss, Cl A 54,600 1,379
Matthews International, Cl A 135,300 3,704
Piercing Pagoda* 122,250 1,093
Quaker Fabric* 358,400 1,994
Regis 225,000 5,991
Service Experts* 50,800 686
Simpson Manufacturing* 59,100 2,379
Staff Leasing* 112,300 1,607
Stanley Furniture* 233,400 4,551
Synthetic Industries* 120,400 2,009
Tarrant Apparel Group* 30,300 1,273
Topps* 600,000 2,625
TRO Learning* 212,200 1,273
Video Update, Cl A* 376,150 317
Walbro* 108,500 976
Whitehall Jewellers* 56,200 864
------------
63,688
------------
CONSUMER STAPLES -- 3.3%
Avado Brands 121,600 722
Buenos Aires Emb-spons, ADR* 6,274 --
Buffets* 123,600 1,221
Drug Emporium* 141,900 683
SMALL CAP VALUE FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Merrill 152,000 $ 2,033
Pepsi-Cola Puerto Rico Bottling, Cl B* 23,387 140
Performance Food Group* 96,800 2,541
Suiza Foods* 100,300 3,379
------------
10,719
------------
ENERGY -- 1.7%
Atwood Oceanic* 42,000 1,260
Forest Oil 260,360 1,953
Veritas DGC* 152,000 2,156
------------
5,369
------------
FINANCIALS -- 19.3%
Amerin* 291,100 5,913
ARM Financial Group, Cl A 52,600 786
Astoria Financial 43,700 2,185
Chelsea GCA Realty 98,900 2,757
Community First Bankshares 102,800 2,056
Dain Rauscher 89,200 3,033
Enhance Financial Services Group 281,700 6,409
Farm Family Holdings* 59,900 1,902
First Republic Bank* 183,000 4,415
Franchise Mortgage Acceptance* 414,600 3,006
Highwoods Properties 92,700 2,184
LaSalle Re Holdings 92,300 1,361
Lexington Corporate Properties 178,600 1,987
Penn Treaty American* 160,800 3,990
Philadelphia Consolidated Holding* 206,700 4,160
Roslyn Bancorp 305,040 5,148
Southwest Bancorp of Texas* 73,400 904
UST 105,730 2,310
Walden Residential Properties 109,200 1,925
Webster Financial 110,904 3,202
Willis Lease Finance* 165,100 2,889
------------
62,522
------------
HEALTH CARE -- 6.5%
Cooper* 324,400 4,988
Diagnostic Health Services* 316,900 386
Lifecore Biomedical* 96,200 836
Mentor 168,900 2,481
Parexel International* 174,300 3,606
PolyMedica* 225,200 1,689
Respironics* 306,500 4,042
Roberts Pharmaceutical* 54,000 1,120
Spacelabs Medical* 115,600 1,944
------------
21,092
------------
TECHNOLOGY -- 16.0%
Actel* 80,300 1,320
Alpha Industries 52,500 965
ANADIGICS* 27,000 476
BancTec* 228,262 2,810
Comdial* 145,300 944
Digital Microwave* 197,100 1,651
DII Group* 42,100 1,231
DSP Communications* 41,400 657
Etec Systems* 26,600 783
FEI* 131,600 1,102
Gatefield* 537,600 470
Glenayre Technologies* 203,500 700
Inprise Corp* 642,800 2,491
37 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
SMALL CAP VALUE FUND (CONTINUED)
DESCRIPTION SHARES/PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Kronos* 55,200 $ 1,352
National Computer Systems 111,400 2,729
Network Equipment Technology* 187,300 1,674
Nova* 67,774 1,779
Olicom A/S* 175,900 528
P-Com* 90,900 693
Pioneer-Standard Electronics 187,600 1,231
Pomeroy Computer Resources* 155,800 2,025
Powerwave Technologies* 59,100 1,677
Radisys* 209,500 6,508
Remec* 57,600 1,202
Sapiens International* 170,300 1,777
Sawtek* 41,200 1,390
Spectrian* 65,700 772
Sybase* 555,300 4,408
System Software Associates* 811,900 1,827
Triple P N.V.* (H) 801,760 2,205
Unitrode* 180,400 2,559
------------
51,936
------------
TRANSPORTATION -- 1.0%
Nordic American Tanker Shipping 284,800 3,275
World Airways* 46,500 46
------------
3,321
------------
UTILITIES -- 3.5%
El Paso Electric 250,000 1,906
TNP Enterprises 82,300 2,366
Unisource Energy Holding* 650,000 7,191
------------
11,463
------------
TOTAL COMMON STOCKS
(Cost $268,570) 287,338
------------
CONVERTIBLE BONDS -- 1.1%
Complete Management, 62.5000 shares
8.000%, 08/15/03 (A) $ 595 47
Complete Management, 71.4286 shares
8.000%, 08/15/03 (A) 520 41
Drug Emporium, 65.1466 shares
7.750%, 10/01/14 740 540
Leasing Solutions, 28.6533 shares
6.875%, 10/01/03 455 52
Titan, 285.7143 shares
0.250%, 11/01/03
8.250%, 11/01/03 1,935 2,838
------------
TOTAL CONVERTIBLE BONDS
(Cost $4,059) 3,518
------------
WARRANT -- 0.0%
Sound Advice* 505 --
------------
TOTAL WARRANT
(Cost $0) --
------------
RELATED PARTY MONEY MARKET FUND -- 5.6%
First American Prime Obligations
Fund (B) 18,087,162 18,087
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $18,087) 18,087
------------
SMALL CAP VALUE FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 95.4%
(Cost $290,716) $ 308,943
------------
OTHER ASSETS AND LIABILITIES, NET-- 4.6% (C) 14,756
------------
NET ASSETS:
Portfolio Capital--Class-A
($.0001 par value--2 billion authorized)
based on 944,556 outstanding shares 11,887
Portfolio Capital--Class-B
($.0001 par value--2 billion authorized)
based on 67,557 outstanding shares 1,053
Portfolio Capital--Class-C
($.0001 par value--2 billion authorized)
based on 2,925 outstanding shares 36
Portfolio Capital--Class-Y
($.0001 par value--2 billion authorized)
based on 25,749,878 outstanding shares 301,212
Undistributed net investment income 86
Accumulated net realized loss on investments (8,802)
Net unrealized appreciation of investments 18,227
------------
TOTAL NET ASSETS -- 100.0% $ 323,699
------------
Net asset value and redemption
price per share--Class-A $ 12.07
Maximum sales charge of 5.25% (D) 0.67
------------
Offering price per share--Class-A $ 12.74
------------
Net asset value and offering
price per share--Class-B (E) $ 11.97
------------
Net asset value per share--Class-C (F) $ 12.06
Maximum sales charge of 1.00% (G) 0.12
------------
Offering price per share--Class-C $ 12.18
------------
Net asset value, offering price, and
redemption price per share--Class-Y $ 12.10
------------
* Non-income producing security
(A)Security was in default as of April 1, 1999.
(B)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.
(C)Other assets and liabilities representing greater than five percent of total
net assets include the following (000):
Cash collateral received for securities on loan $ 15,261
Payable upon return of securities on loan $(15,261)
(D)The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 5.25%.
(E)Class-B has a contingent deferred sales charge. For a description of a
possible redemption charge, see the notes to the financial statements.
(F)Class-C has a contingent deferred sales charge. For a description of a
possible redemption charge, see the notes to the financial statements.
(G)The offering price is calcluated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%.
(H)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."
ADR--American Depositary Receipt
Cl--Class
The accompanying notes are an integral part of the financial statements.
38 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
SMALL CAP FUNDS
STATEMENTS OF
OPERATIONS FOR THE SIX MONTHS ENDED MARCH 31, 1999, (UNAUDITED)
IN THOUSANDS
<TABLE>
<CAPTION>
MICRO CAP REGIONAL SMALL CAP SMALL CAP
VALUE FUND EQUITY FUND GROWTH FUND VALUE FUND
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 214+ $ 268+ $ 437+ $ 748+
Dividends 440 977* 373 1,346
- --------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 654 1,245 810 2,094
==============================================================================================================
EXPENSES:
Investment advisory fees 384 965 651 1,337
Less: Waiver of investment advisory fees (1) (84) (3) (17)
Administrator fees 60 150 101 208
Transfer agent fees 23 141 27 45
Custodian fees 17 41 28 57
Directors' fees 1 3 2 4
Registration fees 4 10 13 22
Professional fees 1 3 2 5
Printing 3 8 6 11
Distribution fees - class-A 2 32 42 16
Distribution fees - class-B 1 149 7 4
Other 2 4 3 5
- --------------------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 497 1,422 879 1,697
==============================================================================================================
Investment income (loss) - net 157 (177) (69) 397
- --------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS - NET:
Net realized gain (loss) on investments 13,675 9,115* 15,392 (4,693)
Net change in unrealized appreciation (depreciation) of
investments (14,318) 788* 21,805 (5,328)
- --------------------------------------------------------------------------------------------------------------
NET GAIN (LOSS) ON INVESTMENTS (643) 9,903 37,197 (10,021)
==============================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $ (486) $ 9,726 $ 37,128 $ (9,624)
==============================================================================================================
</TABLE>
+ Includes income from securities lending program. See the Notes to the
Financial Statements for additional information.
* Includes the following amounts from investments in Common Stock of Affiliates
(000): $34 of dividend income, $(52) of realized loss on investments, and
$3,358 of unrealized appreciation of investments.
The accompanying notes are an integral part of the financial statements.
39 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
CHANGES IN NET ASSETS IN THOUSANDS
<TABLE>
<CAPTION>
MICRO CAP REGIONAL SMALL CAP
VALUE FUND EQUITY FUND GROWTH FUND
- --------------------------------------------------------------------------------------------------------------------------------
10/1/98 10/1/97 10/1/98 10/1/97 10/1/98 10/1/97
to to to to to to
3/31/99 9/30/98 3/31/99 9/30/98 3/31/99 9/30/98
- --------------------------------------------------------------------------------------------------------------------------------
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Investment income (loss) - net $ 157 $ 423 $ (177) $ 185 $ (69) $ (260)
Net realized gain (loss) on investments 13,675 27,875 9,115 20,276 15,392 (5,101)
Net change in unrealized appreciation (depreciation)
of investments (14,318) (77,385) 788 (117,589) 21,805 (24,055)
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations (486) (49,087) 9,726 (97,128) 37,128 (29,416)
- --------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class-A (1) -- -- -- -- --
Class-B -- -- -- -- -- --
Class-C -- -- -- -- -- --
Class-Y (178) (371) -- (184) -- --
Net realized gain on investments:
Class-A (345) (15) (1,806) (1,388) (46) (5,302)(A)
Class-B - FAIF (48) (7) (2,155) (1,723) (2) --
Class-B - Piper -- -- -- -- -- (10)(A)
Class-C -- -- -- -- -- --
Class-Y (26,092) (12,784) (15,562) (12,883) (171) --
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS (26,664) (13,177) (19,523) (16,178) (219) (5,312)
================================================================================================================================
CAPITAL SHARE TRANSACTIONS(1):
Class-A
Proceeds from sales 641 5,879 713 11,530 48,556 24,836
Shares issued in connection with acquisition of Piper Fund -- -- -- -- -- 5,802
Reinvestment of distributions 171 9 1,738 1,324 54 5,164
Payments for redemptions (312) (4,491) (6,248) (14,563) (53,160) (31,425)
- --------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from class-A
transactions 500 1,397 (3,797) (1,709) (4,550) 4,377
- --------------------------------------------------------------------------------------------------------------------------------
Class-B
Proceeds from sales - FAIF 20 215 329 5,492 523 62
Proceeds from sales - Piper -- -- -- -- -- 586
Shares issued in connection with acquisition of Piper Fund -- -- -- -- -- 1,306
Reinvestment of distributions - FAIF 48 7 2,125 1,684 2 --
Reinvestment of distributions - Piper -- -- -- -- -- 10
Payments for redemptions - FAIF (45) (8) (6,606) (5,532) (189) (47)
Payment for redemptions - Piper -- -- -- -- -- (1,125)
- --------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from class-B transactions 23 214 (4,152) 1,644 336 792
- --------------------------------------------------------------------------------------------------------------------------------
Class-C
Proceeds from sales -- -- -- -- 66 --
Reinvestment of distributions -- -- -- -- -- --
Payment for redemptions -- -- -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from class-C transactions -- -- -- -- 66 --
- --------------------------------------------------------------------------------------------------------------------------------
Class-Y
Proceeds from sales 7,281 13,564 16,143 92,606 81,886 7,699
Shares issued in connection with acquisition
of Piper Fund -- -- -- -- -- 146,984
Reinvestment of distributions 3,937 6,055 12,110 9,959 50 --
Payments for redemptions (55,716) (60,217) (76,245) (137,313) (21,443) (18,021)
- --------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from class-Y transactions (44,498) (40,598) (47,992) (34,748) 60,493 136,662
- --------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share
transactions (43,975) (38,987) (55,941) (34,813) 56,345 141,831
- --------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (71,125) (101,251) (65,738) (148,119) 93,254 107,103
NET ASSETS AT BEGINNING OF PERIOD 145,444 246,695 280,248 428,367 143,230 36,127
================================================================================================================================
NET ASSETS AT END OF PERIOD (2) $ 74,319 $ 145,444 $ 214,510 $ 280,248 $ 236,484 $ 143,230
================================================================================================================================
</TABLE>
(1)See note 4 in the notes to financial statements for additional information.
(2)Includes undistributed (distributions in excess of) net investment income
(000) of $30 and $52 for Micro Cap Value Fund, $(177) and $0 for Regional
Equity Fund, $(70) and $(1) for Small Cap Growth Fund, $86, $231 and $(150),
and for Small Cap Value Fund, at March 31, 1999, September 30, 1998, and
September 30, 1997, respectively.
(A)Included in the distributions for the Small Cap Growth Fund is a return of
capital distribution in the amount of $5,311,630 for class-A and $370 for
class-B - Piper.
(B)The Statements of Changes in Net Assets for the Small Cap Value Fund reflect
the change of the Fund's year end from July 31st, to November 30th, and then
to September 30th.
The accompanying notes are an integral part of the financial statements.
40 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
<TABLE>
<CAPTION>
SMALL CAP FUNDS
SMALL CAP
VALUE FUND(B)
- ---------------------------------------
10/1/98 12/1/97 8/1/97
to to to
3/31/99 9/30/98 11/30/97
- ---------------------------------------
(unaudited)
<S> <C> <C>
$ 397 $ 1,583 $ (114)
(4,693) 25,057 2,299
(5,328) (116,183) 8,373
- ---------------------------------------
(9,624) (89,543) 10,558
- ---------------------------------------
(7) (14) --
-- -- --
-- -- --
(535) (1,188) (93)
(1,046) (1,320) --
(59) (4) --
-- -- --
-- -- --
(29,701) (33,301) --
- ---------------------------------------
(31,348) (35,827) (93)
=======================================
2,112 39,216 18,971
-- -- --
1,045 1,335 --
(3,759) (42,007) (22,884)
- ---------------------------------------
(602) (1,456) (3,913)
- ---------------------------------------
399 799 1
-- -- --
-- -- --
59 4 --
-- -- --
(159) (50) --
-- -- --
- ---------------------------------------
299 753 1
- ---------------------------------------
36 -- --
-- -- --
-- -- --
- ---------------------------------------
36 -- --
- ---------------------------------------
88,030 213,258 117,751
-- -- --
27,228 32,778 82
(131,524) (219,000) (116,562)
- ---------------------------------------
(16,266) 27,036 1,271
- ---------------------------------------
(16,533) 26,333 (2,641)
- ---------------------------------------
(57,505) (99,037) 7,824
381,204 480,241 472,417
=======================================
$ 323,699 $ 381,204 $ 480,241
=======================================
</TABLE>
41 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING, THROUGHOUT THE PERIODS
ENDED SEPTEMBER 30, UNLESS OTHERWISE INDICATED
<TABLE>
<CAPTION>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS DISTRIBUTIONS
VALUE NET GAINS OR FROM NET DISTRIBUTIONS FROM
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM RETURN OF
OF PERIOD INCOME (LOSS) INVESTMENTS INCOME CAPITAL GAINS CAPITAL
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
MICRO CAP VALUE FUND
Class-A
1999*(unaudited) $ 7.95 $ -- $(0.21) $ -- $(1.79) $--
1998 10.96 -- (2.42) -- (0.59) --
1997(1) 10.00 -- 0.96 -- -- --
Class-B
1999*(unaudited) $ 7.84 $ -- $(0.22) $ -- $(1.79) $--
1998 10.95 (0.01) (2.51) -- (0.59) --
1997(1) 10.00 -- 0.95 -- -- --
Class-Y
1999*(unaudited) $ 7.93 $ 0.01 $(0.20) $(0.01) $(1.79) $--
1998 10.95 0.02 (2.43) (0.02) (0.59) --
1997(1) 10.00 -- 0.95 -- -- --
- --------------------------------------------------------------------------------------------------------------------
REGIONAL EQUITY FUND
Class-A
1999*(unaudited) $16.68 $(0.05) $ 0.44 $ -- $(1.23) $--
1998 23.12 -- (5.49) -- (0.95) --
1997 17.71 0.03 6.14 (0.07) (0.69) --
1996 17.12 0.04 1.70 (0.04) (1.11) --
1995 12.52 0.08 4.90 (0.06) (0.32) --
1994 11.96 0.08 0.71 (0.07) (0.16) --
Class-B
1999*(unaudited) $16.25 $(0.12) $ 0.44 $ -- $(1.23) $--
1998 22.72 (0.04) (5.48) -- (0.95) --
1997 17.47 (0.03) 5.97 -- (0.69) --
1996 16.99 (0.04) 1.64 (0.01) (1.11) --
1995 12.50 0.04 4.80 (0.03) (0.32) --
1994(2) 12.19 -- 0.33 (0.02) -- --
Class-Y
1999*(unaudited) $16.74 $(0.03) $ 0.43 $ -- $(1.23) $--
1998 23.16 0.01 (5.46) (0.02) (0.95) --
1997 17.75 0.05 6.18 (0.13) (0.69) --
1996 17.13 0.09 1.70 (0.06) (1.11) --
1995 12.52 0.11 4.90 (0.08) (0.32) --
1994(3) 12.41 0.07 0.11 (0.07) -- --
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Returns are for the period indicated and have not been annualized.
* For the six month period ended March 31. All ratios for the period have been
annualized.
(A)Excluding sales charges.
(1)Commenced operations August 7, 1997. All ratios for the period have been
annualized.
(2)Class-B shares have been offered since August 15, 1994. All ratios for the
period have been annualized.
(3)Class-Y shares have been offered since February 4, 1994. All ratios for the
period have been annualized.
42 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
SMALL CAP FUNDS
<TABLE>
<CAPTION>
RATIO OF
RATIO OF NET EXPENSES TO
NET ASSET RATIO OF INVESTMENT AVERAGE
VALUE NET ASSETS EXPENSES TO INCOME (LOSS) NET ASSETS PORTFOLIO
END OF TOTAL END OF AVERAGE TO AVERAGE (EXCLUDING TURNOVER
PERIOD RETURN (A) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) RATE
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 5.95 (5.03)%+ $ 1,199 1.15% 0.02% 1.15% 8%
7.95 (22.77) 1,110 1.13 (0.09) 1.13 16
10.96 9.60+ 44 1.15 (0.25) 1.32 0
$ 5.83 (5.36)%+ $ 172 1.90% (0.68)% 1.90% 8%
7.84 (23.78) 206 1.88 (0.78) 1.88 16
10.95 9.50+ 50 1.90 (1.04) 2.07 0
$ 5.94 (4.79)%+ $ 72,948 0.90% 0.29% 0.90% 8%
7.93 (22.76) 144,128 0.88 0.21 0.88 16
10.95 9.50+ 246,601 0.90 (0.02) 1.07 0
- ----------------------------------------------------------------------------------------------------------------
$15.84 1.53%+ $ 20,906 1.15% (0.25)% 1.21% 7%
16.68 (24.54) 25,706 1.15 (0.08) 1.16 15
23.12 36.13 37,677 1.15 0.11 1.15 17
17.71 10.97 25,325 1.13 0.24 1.15 36
17.12 41.17 14,917 1.05 0.58 1.20 42
12.52 6.76 8,345 0.82 0.59 1.25 41
$15.34 1.12%+ $ 23,895 1.90% (1.00)% 1.96% 7%
16.25 (25.12) 29,481 1.90 (0.83) 1.91 15
22.72 35.18 39,683 1.90 (0.65) 1.90 17
17.47 10.14 27,671 1.88 (0.52) 1.90 36
16.99 39.98 7,630 1.84 (0.25) 1.95 42
12.50 2.73+ 185 1.80 (0.41) 2.05 41
$15.91 1.59%+ $169,709 0.90% (0.06)% 0.96% 7%
16.74 (24.34) 225,061 0.90 0.17 0.91 15
23.16 36.49 351,007 0.90 0.35 0.90 17
17.75 11.27 259,138 0.88 0.49 0.90 36
17.13 41.40 188,583 0.84 0.78 0.95 42
12.52 1.46+ 96,045 0.80 0.82 1.05 41
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
43 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING, THROUGHOUT THE PERIODS
ENDED SEPTEMBER 30, UNLESS OTHERWISE INDICATED
<TABLE>
<CAPTION>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS DISTRIBUTIONS
VALUE NET GAINS OR FROM NET DISTRIBUTIONS FROM
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM RETURN OF
OF PERIOD INCOME (LOSS) INVESTMENTS INCOME CAPITAL GAINS CAPITAL
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SMALL CAP GROWTH FUND
Class-A(1)
1999*(unaudited) $11.90 $(0.05) $ 2.99 $ -- $(0.02) $ --
1998 17.41 (0.09) (2.67) -- (2.64) (0.11)
1997 17.11 (0.16) 5.66 (0.04) (5.16) --
1996(2) 17.68 0.06 0.87 (0.07) (1.43) --
1995 15.61 0.09 2.07 (0.09) -- --
1994 15.30 0.07 0.27 (0.03) -- --
Class-B - FAIF
1999*(unaudited) $11.50 $(0.11) $ 2.90 $ -- $(0.02) $ --
1998(3) 13.74 (0.02) (2.22) -- -- --
Class-B - Piper
1998(4) $ 9.54 $(0.09) $ 0.42 $ -- $(0.15) $(0.01)
1997(5) 7.24 (0.03) 2.33 -- -- --
Class-C
1999(6)(unaudited) $15.48 $ -- $(0.67) $ -- $ -- $ --
Class-Y
1999*(unaudited) $11.98 $ -- $ 2.98 $ -- $(0.02) $ --
1998(3) 14.29 -- (2.31) -- -- --
- -----------------------------------------------------------------------------------------------------------------------
SMALL CAP VALUE FUND(B)
Class-A
1999*(unaudited) $13.58 $ -- $(0.49) $(0.01) $(1.01) $ --
1998(7) 18.20 0.04 (3.38) (0.01) (1.27) --
1997(8) 17.86 (0.03) 0.37 -- -- --
1997(9) 13.95 0.01 5.43 (0.01) (1.52) --
1996(9) 13.23 0.04 1.83 (0.04) (1.11) --
1995(9)(10) 10.00 0.09 3.29 (0.10) (0.05) --
Class-B
1999*(unaudited) $13.53 $(0.01) $(0.54) $ -- $(1.01) $ --
1998(7) 18.23 0.01 (3.43) (0.01) (1.27) --
1997(11)(12) 18.22 -- 0.01 -- -- --
Class-C
1999(6)(unaudited) $13.48 $ -- $(1.42) $ -- $ -- $ --
Class-Y
1999*(unaudited) $13.60 $ 0.01 $(0.48) $(0.02) $(1.01) $ --
1998(7) 18.23 0.06 (3.38) (0.04) (1.27) --
1997(8) 17.87 (0.01) 0.37 -- -- --
1997(9) 13.96 0.04 5.43 (0.04) (1.52) --
1996(9) 13.26 0.06 1.81 (0.06) (1.11) --
1995(9)(10) 10.00 0.13 3.30 (0.12) (0.05) --
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Returns are for the period indicated and have not been annualized.
* For the six month period ended March 31. All ratios for the period have been
annualized.
(A)Excluding sales charges.
(B)The financial highlights for Small Cap Value Fund as set forth herein
include the historical financial highlights of the Qualivest Small Companies
Fund class-A and class-Y shares. The assets of the Small Companies Fund were
acquired by Small Cap Value Fund on November 21, 1997. In connection with
such acquisition, (i) class-A and class-C shares of the Qualivest Small
Companies Value Fund were exchanged for class-A shares of Small Cap Value
Fund; and (ii) Qualivest class-Y shares were exchanged for class-Y shares of
Small Cap Value Fund.
(1)Historical per-share amounts have been adjusted to reflect the conversion
ratios utilized for the reorganization of the FAIF Small Cap Growth Fund and
the Piper Small Company Growth Fund, that occurred on July 31, 1998. Piper
Small Company Growth Fund is the financial reporting survivor. Therefore,
the financial highlights for the Small Cap Growth Fund represent the
financial highlights information of the former Piper Small Company Growth
Fund. On July 31, 1998, the fund's advisor changed from Piper Capital
Management, Inc. to U.S. Bank N.A.
(2)On September 12, 1996, shareholders of the Fund approved a change in the
Fund's investment objective from high total investment return consistent
with prudent investment risk to long-term capital appreciation. In
connection with this change in investment objective, the Fund's investment
policies were revised.
(3)Class-Y and class-B shares have been offered since July 31, 1998. There is
no historical information for these classes of Piper Small Company Growth
Fund prior to the reorganization on July 31, 1998. All ratios for the period
have been annualized.
(4)Effective April 28, 1998, all shareholders were exchanged into class-A.
Class-B share activity was discontinued. All ratios for the period have been
annualized.
(5)Class-B Piper Shares have been offered since February 18, 1997. All ratios
for the period have been annualized.
(6)For the six month period ended March 31. Class-C shares have been offered
since February 1, 1999.
(7)For the period December 1, 1997 to September 30, 1998. All ratios for the
period have been annualized. The First American board of directors approved
a change in the fund's fiscal year end from November 30 to September 30,
effective September 30, 1998.
(8)For the period August 1, 1997, to November 30, 1997. All ratios for the
period have been annualized. The First American board of directors approved
a change in the fund's fiscal year end from July 31 to November 30,
effective November 30, 1997.
(9)For the period ended July 31.
(10)Commenced operations August 1, 1994. All ratios for the period have been
annualized.
(11)Class-B shares have been offered since November 24, 1997. All ratios for the
period have been annualized.
(12)For the period November 24, 1997, to November 30, 1997.
44 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
SMALL CAP FUNDS
<TABLE>
<CAPTION>
RATIO OF
RATIO OF NET EXPENSES TO
NET ASSET RATIO OF INVESTMENT AVERAGE
VALUE NET ASSETS EXPENSES TO INCOME (LOSS) NET ASSETS PORTFOLIO
END OF TOTAL END OF AVERAGE TO AVERAGE (EXCLUDING TURNOVER
PERIOD RETURN (A) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) RATE
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$14.82 24.70%+ $ 31,438 1.14% (0.28)% 1.15% 43%
11.90 (18.66) 28,252 1.29 (0.61) 1.43 92
17.41 45.66 35,647 1.34 (0.75) 1.98 109
17.11 5.38 30,968 1.32 0.20 1.79 125
17.68 13.88 48,421 1.40 0.43 1.63 182
15.61 2.12 78,376 1.32 0.37 1.54 177
$14.27 24.25%+ $ 1,733 1.89% (1.02)% 1.90% 43%
11.50 (16.30)+ 1,104 1.90 (1.20) 1.90 92
$ 9.71 3.61%+ $ -- 2.03% (1.30)% 2.40% 56%
9.54 31.77+ 480 1.98 (1.49) 2.15 109
$14.81 (4.33)%+ $ 66 1.89% (0.65)% 1.90% 43%
$14.94 24.95%+ $203,247 0.89% (0.02)% 0.90% 43%
11.98 (16.17)+ 113,874 0.90 (0.20) 0.90 92
- -----------------------------------------------------------------------------------------------------------------
$12.07 (3.79)%+ $ 11,402 1.14% (0.03)% 1.14% 21%
13.58 (19.48)+ 13,551 1.13 0.15 1.13 21
18.20 1.90+ 19,194 1.37 (0.38) 1.37 3
17.86 41.71 22,429 1.31 0.01 1.31 29
13.95 14.93 10,247 1.33 0.14 1.33 34
13.23 34.29+ 1,569 1.11 0.63 1.38 37
$11.97 (4.24)%+ $ 809 1.89% (0.77)% 1.89% 21%
13.53 (19.91)+ 618 1.88 (0.53) 1.88 21
18.23 0.05+ 1 1.90 (1.53) 1.90 3
$12.06 (10.53)%+ $ 35 1.89% (0.38)% 1.89% 21%
$12.10 (3.62)%+ $311,453 0.89% 0.22% 0.89% 21%
13.60 (19.31)+ 367,035 0.88 0.40 0.88 21
18.23 2.01+ 461,046 1.06 (0.06) 1.06 3
17.87 41.96 449,988 1.06 0.25 1.06 29
13.96 14.94 297,793 1.08 0.41 1.08 34
13.26 34.76+ 209,626 0.60 1.20 1.17 37
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
45 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
EMERGING MARKETS FUND
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
FOREIGN COMMON STOCKS -- 90.5%
BRAZIL -- 0.9%
Telebras, ADR 4,400 $ 355
------------
CHILE -- 3.3%
Distribucion y Sevicio ADR 47,800 589
Enersis ADR 25,600 686
------------
1,275
------------
CHINA -- 1.5%
China Telecom, ADR* 17,000 567
------------
GHANA -- 0.5%
Pioneer Tobacco 1,106,400 182
------------
GREECE -- 10.7%
Alpha Credit Bank 17,600 1,169
Antenna TV, ADR* 9,100 118
Chipita International 11,600 422
Ergo Bank 5,920 443
Hellenic Telecommunication Organization 43,600 1,059
National Bank of Greece 5,000 338
STET Hellas Telecommunications, ADR* 18,300 542
------------
4,091
------------
HONG KONG -- 11.3%
Asia Satellite Telecommunications
Holdings 118,000 187
First Pacific 1,002,000 601
HSBC Holdings 20,000 627
Hutchison Whampoa 181,000 1,425
IDT International 1,344,000 151
Johnson Electric Holdings 326,000 919
Sun Hung Kai Properties 55,000 412
------------
4,322
------------
HUNGARY -- 4.3%
Matav ADR 55,000 1,471
OTP Bank, GDR 4,500 174
------------
1,645
------------
INDIA -- 0.9%
ITC GDR (A) 9,400 257
Ranbaxy Laboratories, GDR (A) 4,400 74
------------
331
------------
ISRAEL -- 10.1%
Check Point Software Technologies* 14,600 628
ECI Telecom* 35,100 1,229
Gilat Satellite Networks* 26,600 1,596
Orckit Communications* 2,400 50
Teva Pharmaceutical Industries, ADR 7,500 357
------------
3,860
------------
MEXICO -- 7.4%
Empresas La Moderna, ADR* 27,900 663
Grupo Modelo, Cl C 135,000 343
Grupo Posadas, Cl A* 900,000 426
Grupo Televisa, GDR* 31,200 979
Telefonos de Mexico, ADR 6,600 432
------------
2,843
------------
EMERGING MARKETS FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
PHILIPPINES -- 1.8%
Metro Pacific* 3,594,000 $ 175
Philippine Long Distance Telephone 19,500 515
------------
690
------------
POLAND -- 3.2%
Agora, GDR* (A) 15,900 173
Prokom Software, GDR (A) 22,200 376
Telekomunikacja Polska* (A) 126,300 686
------------
1,235
------------
PORTUGAL -- 1.0%
Jeronimo Martins 11,400 405
------------
SINGAPORE -- 8.9%
City Developments 236,000 1,230
Datacraft Asia 220,000 515
Development Bank of Singapore 37,000 281
Singapore Press Holdings 62,000 686
United Overseas Bank 110,000 688
------------
3,400
------------
SOUTH AFRICA -- 3.0%
Comparex Holdings 34,300 268
Dimension Data Holdings* 148,961 664
Nedcor 10,700 239
------------
1,171
------------
SOUTH KOREA -- 8.3%
Kookmin Bank, GDR (A) 35,800 344
Korea Electric Power, ADR 74,000 939
Pohang Iron & Steel, ADR 19,000 340
Samsung Electronics* (A) 18,390 752
SK Telecom, ADR 67,647 824
------------
3,199
------------
TAIWAN -- 8.2%
Acer* 514,000 684
Advanced Semiconductor Engineering* 80,000 188
Cathay Life Insurance 52,000 168
Evergreen Marine 188,000 216
Inventec* 198,000 690
President Chain Store 164,000 508
Taiwan Semiconductor* 90,000 283
United Microelectronics* 229,000 398
------------
3,135
------------
THAILAND -- 2.7%
Advanced Info Service 61,000 442
Bangkok Bank* (A) 289,000 593
------------
1,035
------------
UNITED STATES -- 2.5%
Comverse Technology* 11,300 961
------------
TOTAL FOREIGN COMMON STOCKS
(Cost $33,945) 34,702
------------
46 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
INTERNATIONAL FUNDS
EMERGING MARKETS FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
RELATED PARTY MONEY MARKET FUND -- 4.6%
First American Prime Obligations
Fund (B) 1,743,746 $ 1,744
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $1,744) 1,744
------------
TOTAL INVESTMENTS -- 95.1%
(Cost $35,689) 36,446
------------
OTHER ASSETS AND LIABILITIES, NET -- 4.9% 1,885
------------
NET ASSETS:
Portfolio Capital--Class-A
($.0001 par value--2 billion authorized)
based on 769,100 outstanding shares 13,490
Portfolio Capital--Class-B
($.0001 par value--2 billion authorized)
based on 476 outstanding shares 3
Portfolio Capital--Class-Y
($.0001 par value--2 billion authorized)
based on 5,631,755 outstanding shares 35,440
Accumulated net investment loss (166)
Accumulated net realized loss on investments (11,188)
Net unrealized appreciation of investments 757
Net unrealized depreciation of forward foreign
currency contracts, foreign currency and
translation of other assets and liabilities
in foreign currency (5)
------------
TOTAL NET ASSETS -- 100.0% $ 38,331
------------
Net asset value and redemption
price per share--Class-A $ 5.97
Maximum sales charge of 5.25% (C) 0.33
------------
Offering price per share--Class-A $ 6.30
------------
Net asset value and offering
price per share--Class-B (D) $ 5.95
------------
Net asset value, offering price, and
redemption price per share--Class-Y $ 5.99
------------
* Non-income producing security
(A)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.
(B)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.
(C)The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 5.25%.
(D)Class-B has a contingent deferred sales charge. For a description of a
possible redemption charge, see the notes to the financial statements.
ADR--American Depositary Receipt
Cl--Class
GDR--Global Depositary Receipt
The accompanying notes are an integral part of the financial statements.
INTERNATIONAL FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
FOREIGN COMMON STOCKS -- 92.8%
AUSTRALIA -- 4.1%
Coles Myer 581,200 $ 3,154
Fosters Brewing 1,365,200 4,018
Lend Lease 417,400 5,318
National Australia Bank 376,400 6,839
------------
19,329
------------
FINLAND -- 4.9%
Nokia, Cl A 143,600 23,070
------------
FRANCE -- 14.4%
Axa 63,500 8,402
Banque Nationale de Paris 12,400 1,077
Canal Plus 25,500 7,460
Cap Gemini 69,033 11,537
Elf Aquitaine 12,600 1,708
Equant* 70,800 5,371
France Telecom 56,082 4,526
L'OREAL 7,075 4,467
Promodes 2,570 1,567
Sanofi 22,800 3,832
STMicroelectronics* 45,000 4,458
Suez Lyonnaise des Eaux 15,500 2,863
Synthelabo 8,400 1,824
Vivendi 32,500 7,981
------------
67,073
------------
GERMANY -- 3.5%
Deutsche Telekom 66,900 2,721
Mannesmann 94,000 11,982
Muenchener Rueckvers - New,
Registered* 300 60
Muenchener Rueckvers, Registered 300 60
Preussag 2,400 1,285
------------
16,108
------------
HONG KONG -- 3.3%
Cheung Kong Holdings 462,000 3,518
HSBC Holdings 222,800 6,987
Hutchison Whampoa 316,000 2,488
Sun Hung Kai Properties 329,000 2,463
------------
15,456
------------
IRELAND -- 1.8%
Bank of Ireland 292,100 6,084
Elan ADR* 36,300 2,532
------------
8,616
------------
ITALY -- 3.8%
Assicurazioni Generali 89,700 3,586
Italgas 475,200 2,304
Mediaset 549,900 5,161
San Paolo-IMI 89,321 1,448
Telecom Italia Mobile 744,800 5,000
------------
17,499
------------
JAPAN -- 20.5%
Bank of Tokyo-Mitsubishi 155,000 2,129
Daiwa House Industry 154,000 1,753
Fujitsu 411,000 6,580
Honda Motor 24,000 1,081
Hoya 65,000 3,677
Ito-Yokado 40,000 2,566
Kao 504,000 11,094
Keyence 7,800 1,162
47 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
INTERNATIONAL FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Kirin Brewery 237,000 $ 2,769
Matsushita Communications Industrial 118,000 7,956
Mitsui Fudosan 144,000 1,293
Murata Manufacturing 138,000 7,318
Nikko Securities 374,000 1,731
Nikon 126,000 1,527
NTT Mobile Communication Network 174 8,568
Softbank 22,000 2,459
Sony 92,200 8,498
Takeda Chemical Industries 278,000 10,741
Tokyo Electron 168,000 8,669
Toshiba 272,000 1,852
Yamanouchi Pharmaceutical 70,000 2,210
------------
95,633
------------
NETHERLANDS -- 6.6%
AEGON 75,800 6,906
Ahold 57,300 2,192
ASM Lithography Holding* 167,200 7,630
Fortis 68,900 2,639
Heineken 81,500 4,101
Wolter Kluwer 40,700 7,368
------------
30,836
------------
SINGAPORE -- 1.4%
City Developments 262,000 1,366
Singapore Press Holdings 345,000 3,817
United Overseas Bank 184,000 1,151
------------
6,334
------------
SPAIN -- 0.4%
Endesa 69,200 1,743
------------
SWEDEN -- 1.5%
Ericsson Telephone ADR 51,200 1,219
Hennes & Mauritz, Cl B 27,200 2,045
Pharmacia & Upjohn 27,900 1,749
Securitas, Cl B 132,500 2,089
------------
7,102
------------
SWITZERLAND -- 3.2%
Roche Holding, Genusscheine 1,063 12,951
Swisscom, Registered* 5,400 2,107
------------
15,058
------------
UNITED KINGDOM -- 22.7%
Allied Zurich* 71,300 960
British Telecommunications 385,000 6,273
Cable & Wireless 634,400 7,913
Cable & Wireless Communications* 172,900 1,952
Cadbury Schweppes 228,400 3,309
Carlton Communications 317,300 3,127
COLT Telecom Group* 526,000 9,460
Dixons Group 247,400 5,235
Glaxo Wellcome 402,300 13,466
Granada Group 93,500 1,891
Kingfisher 320,700 4,037
Logica 605,100 6,236
Orange* 512,500 7,157
Reuters Group 299,700 4,395
SEMA Group 105,300 1,187
SmithKline Beecham 481,800 6,938
TeleWest Communications* 1,531,700 6,634
Vodafone Group 835,900 15,506
------------
105,676
------------
UNITED STATES -- 0.7%
Global TeleSystems Group* 56,500 3,160
------------
TOTAL FOREIGN COMMON STOCKS
(Cost $367,997) 432,693
------------
INTERNATIONAL FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
FOREIGN WARRANTS -- 0.0%
GERMANY -- 0.0%
Muenchener Rueckvers Warrants,
expire 06/03/02* 300 $ 11
------------
TOTAL FOREIGN WARRANTS
(Cost $9) 11
------------
TOTAL INVESTMENTS -- 92.8%
(Cost $368,006) 432,704
------------
OTHER ASSETS AND LIABILITIES, NET -- 7.2% (A) 33,359
------------
NET ASSETS:
Portfolio Capital--Class-A
($.0001 par value--2 billion authorized)
based on 3,096,895 outstanding shares 33,263
Portfolio Capital--Class-B
($.0001 par value--2 billion authorized)
based on 254,212 outstanding shares 2,872
Portfolio Capital--Class-C
($.0001 par value--2 billion authorized)
based on 16,186 outstanding shares 220
Portfolio Capital--Class-Y
($.0001 par value--2 billion authorized)
based on 30,596,053 outstanding shares 352,387
Accumulated net investment loss (10,010)
Accumulated net realized gain on investments 22,636
Net unrealized appreciation of investments 64,698
Net unrealized depreciation of forward foreign
currency contracts, foreign currency and
translation of other assets and liabilities
in foreign currency (3)
------------
TOTAL NET ASSETS -- 100.0% $ 466,063
------------
Net asset value per share--Class-A $ 13.72
Maximum sales charge of 5.25% (B) 0.76
------------
Offering price per share--Class-A $ 14.48
------------
Net asset value and offering
price per share--Class-B (C) $ 13.41
------------
Net asset value per share--Class-C (D) $ 13.72
Maximum sales charge of 1.00% (E) 0.14
------------
Offering price per share--Class-C $ 13.86
------------
Net asset value, offering price, and
redemption price per share--Class-Y $ 13.72
------------
* Non-income producing security
(A)Other assets and liabilities representing greater than five percent of total
net assets include the following (000):
Receivable for fund shares sold $ 21,723
(B)The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 5.25%.
(C)Class-B has a contingent deferred sales charge. For a description of a
possible redemption charge, see the notes to the financial statements.
(D)Class-C has a contingent deferred sales charge. For a description of a
possible redemption charge, see the notes to the financial statemtents.
(E)The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%.
ADR--American Depositary Receipt
Cl--Class
The accompanying notes are an integral part of the financial statements.
48 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
INTERNATIONAL FUNDS
INTERNATIONAL INDEX FUND
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
FOREIGN COMMON STOCKS -- 96.4%
AUSTRALIA -- 2.3%
Amcor 18,082 $ 91
Boral 26,427 38
Brambles Industries 5,692 145
Broken Hill Proprietary 26,847 229
Burns, Philp & Company* 15,097 3
Coca-Cola Amatil 21,218 92
Coca-Cola Beverages* 21,218 34
Coles Myer 26,617 144
CSR 26,547 58
Fosters Brewing 46,622 137
Goodman Fielder 41,964 43
Lend Lease 12,594 160
MIM Holdings 2,632 1
National Australia Bank 29,706 540
Newcrest Mining* 21,543 42
News Corporation 39,293 291
North 18,526 29
Orica 7,707 41
Pacific Dunlop 34,457 60
Pioneer International 22,792 45
Rio Tinto 7,547 105
Santos 14,125 41
Southcorp 16,425 67
Westfield Trust 32,821 71
Westpac Banking 41,367 302
WMC 28,033 89
------------
2,898
------------
AUSTRIA -- 0.3%
Austrian Airlines 1,410 46
Bank Austria 1,386 82
BBAG Oest Brau-Beteiligungs 885 40
Flughafen Wien 772 33
Generale Holding Vienna 269 57
Oest Elektrizatswirts, Cl A 367 58
OMV 340 30
VA Technologie 539 39
Wienerberger Baustoffindustrie 256 45
------------
430
------------
BELGIUM -- 1.7%
Bekaert 87 38
Cimenteries CBR Cementbedrijven 185 17
Delhaize 1,220 113
Electrabel 1,159 415
Electrabel Strip, VVPR* 300 --
Fortis Strip, VVPR* 180 --
Fortis, Cl B 8,388 309
Generale de Banque 438 189
Groupe Bruxelles Lambert 641 117
KBC Bancassurance Holding 3,420 228
KBC Bancassurance Holding Strip, VVPR* 70 --
Petrofina 462 252
Royale Belgian 384 139
Solvay 1,720 105
Tractebel 1,520 239
Union Miniere 428 15
------------
2,176
------------
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
DENMARK -- 0.8%
Carlsberg, CL A 562 $ 23
Carlsberg, Cl B 36 1
D/S 1912, Cl B 20 149
D/S Svendborg, Cl B 15 159
Danisco 1,429 65
Den Danske Bank 999 105
FLS Industries, Cl B 1,105 22
ISS International Service System, Cl B 840 55
Novo-Nordisk, Cl B 1,311 146
Radiometer, Cl B 417 19
Tele Danmark, Cl B 1,986 196
Unidanmark, Cl A 1,148 78
------------
1,018
------------
FINLAND -- 1.8%
Kesko 1,700 25
Kone, Cl B 100 11
MeritaNordbanken 18,733 100
Metra, Cl B 700 14
Nokia, Cl A 8,900 1,430
Nokia, Cl K 2,400 385
Outokumpu 3,500 36
Sampo Insurance, Cl A 1,350 42
Stockmann, Cl A 1,200 26
Stora Enso, CL A* 2,546 25
Stora Enso, Cl R* 4,433 44
Upm-Kymmene 5,740 158
------------
2,296
------------
FRANCE -- 8.7%
Accor 887 220
Air Liquide 1,947 290
Alcatel 2,878 330
Axa 7,207 954
Banque Nationale de Paris 3,482 302
BIC 1,500 79
Bouygues 751 208
Canal Plus 671 196
Carrefour 710 546
Casino Guichard-Perrachon 1,550 137
Chargeurs 200 11
Compagnie de Saint Gobain 1,823 289
Elf Aquitaine 5,340 724
Eridania Beghin-Say 650 96
Groupe Danone 1,201 302
L'OREAL 1,143 722
Lafarge 1,758 158
Lagardere SCA 2,210 72
Legrand 480 101
Louis Vuitton Moet Hennessy 1,609 398
Michelin, Cl B 3,273 147
Paribas 3,103 346
Pathe 200 51
Pernod Ricard 1,302 83
Peugeot 956 137
Pinault-Printemps-Redoute 2,001 319
Promodes 316 193
Rhone Poulenc 6,987 315
Sadexho Alliance 900 147
Sagem 150 82
Sanofi 2,343 394
Schneider 2,781 154
49 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
SEFIMEG 431 $ 28
Sidel 800 63
Simco 841 73
Societe Eurafrance 105 50
Societe Generale, Cl A 1,557 299
Suez Lyonnaise des Eaux 2,492 460
Thomson CSF 2,632 80
Total, Cl B 3,710 456
Unibail 250 31
Usinor 2,568 34
Valeo 1,778 139
Vivendi 3,703 909
------------
11,125
------------
GERMANY -- 9.1%
Adidas-Salomon 900 80
AGIV 880 17
Allianz, Registered 4,200 1,276
AMB Aachener & Muenchener, Bearer 50 6
AMB Aachener & Muenchener, Registered 800 94
Axa Colonia Konzern 450 45
BASF 13,100 479
Bayer 14,050 525
Beiersdorf 1,250 92
Bilfinger & Berger Bau 1,200 23
Brau Und Brunnen* 150 11
Continental 3,100 76
DaimlerChrysler* 9,919 861
Degussa-Huels* 1,350 51
Deutsche Bank 10,700 549
Deutsche Lufthansa, Registered 6,000 131
Deutsche Telekom 37,950 1,544
Deutz* 550 4
Dresdner Bank 9,850 394
Heidelberger Zement 905 55
Hochtief 1,900 63
HypoVereinsbank 9,037 539
Karstadt 100 36
Linde 150 86
MAN 2,500 70
Mannesmann 7,100 905
Merck 3,850 133
Metro 4,184 261
Muenchener Rueckvers - New, Registered* 1,350 268
Muenchener Rueckvers, Registered 1,350 272
Preussag 200 107
RWE 6,230 275
SAP 970 278
Schering 1,500 174
Siemens 9,920 662
STRABAG* 100 4
Thyssen Krupp* 7,500 148
VEBA 8,682 456
Viag 400 220
Volkswagen 5,500 366
------------
11,636
------------
HONG KONG -- 2.0%
Bank of East Asia 15,886 27
Cathay Pacific Airways 54,000 62
Cheung Kong Holdings 35,000 267
Chinese Estates Holdings 104,296 15
CLP Holdings 44,500 214
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Hang Seng Bank 35,200 $ 324
Hong Kong and China Gas 104,616 148
Hong Kong and Shanghai Hotels 29,000 22
Hong Kong Telecommunications 210,039 415
Hopewell Holdings 26,227 13
Hutchison Whampoa 66,000 520
Miramar Hotel and Investment 19,000 20
Peregrine Investment Holdings* 13,000 --
Shangri-La Asia 38,000 39
Shun Tak Holdings 75,146 15
Sino Land 20,657 11
South China Morning Post Holdings 24,000 13
Sun Hung Kai Properties 34,000 254
Swire Pacific, Cl A 23,000 107
Television Broadcasts 10,000 36
Wing Lung Bank 3,500 12
------------
2,534
------------
IRELAND -- 0.5%
Allied Irish Banks 15,732 271
CRH 10,134 175
Greencore Group 5,342 19
Independent Newspapers 2,515 11
Irish Life 8,360 81
Jefferson Smurfit Group 29,615 60
Kerry Group 4,102 55
Waterford Wedgwood Units 22,614 18
------------
690
------------
ITALY -- 4.8%
Assicurazioni Generali 17,794 711
Banca Commerciale Italiana 36,000 295
Banca Intesa 12,000 71
Benetton Group 33,400 60
Burgo (Cartiere) 2,000 14
Edison 10,000 92
ENI 141,725 901
Fiat 67,100 221
Fiat RNC 26,400 47
INA 75,794 229
Italcementi 11,232 123
Italgas 14,000 68
Mediaset 16,984 159
Mediobanca 8,000 107
Mondadori Editore 3,099 46
Montedison 99,500 103
Olivetti* 52,800 165
Parmalat Finanziaria 23,400 33
Pirelli 31,000 88
Riunione Adriatica di Sicurta 9,075 95
Riunione Adriatica di Sicurta RNC 3,075 27
SAI 3,000 38
San Paolo-IMI 24,747 401
Sirti 3,500 21
SNIA BPD 20,000 27
Telecom Italia 62,888 667
Telecom Italia Mobile 120,107 806
Telecom Italia Mobile RNC 31,894 123
Telecom Italia RNC 9,883 59
Unicredito Italiano 57,500 310
Unione Immobiliare* 75,794 40
------------
6,147
------------
50 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
INTERNATIONAL FUNDS
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
JAPAN -- 23.0%
77 Bank 8,000 $ 77
Advantest 2,200 168
Ajinomoto 12,000 142
Alps Electric 3,000 50
Amada 5,000 27
Aoki* 22,000 14
Aoyama Trading 1,100 30
Asahi Bank 35,000 184
Asahi Breweries 7,000 91
Asahi Chemical Industry 25,000 146
Asahi Glass 16,000 116
Ashikaga Bank 2,000 4
Bank of Tokyo-Mitsubishi 76,000 1,044
Bank of Yokohama 25,000 63
Bridgestone 14,000 356
Canon 14,000 345
Chiba Bank 2,000 9
Chugai Pharmaceutical 8,000 92
Citizen Watch 1,000 7
Cosmo Oil 28,000 50
Credit Saison 3,900 85
Dai Nippon Printing 13,000 197
Daicel Chemical Industries 1,000 3
Daido Steel 24,000 34
Daiei 16,000 46
Daiichi Pharmaceutical 7,000 117
Daikin Industries 9,000 89
Dainippon Ink & Chemicals 5,000 16
Dainippon Screen Manufacturing* 7,000 27
Daito Trust Construction 3,000 31
Daiwa House Industry 14,000 159
Daiwa Securities 19,000 102
Denki Kagaku Kogyo 33,000 56
Denso 17,000 333
East Japan Railway 71 421
Ebara 10,000 110
Eisai 7,000 146
Fanuc 3,700 151
Fuji Bank 51,000 301
Fuji Photo Film 10,000 377
Fujita Kanko 4,000 37
Fujitsu 34,000 544
Gunma Bank 13,000 102
Hankyu 17,000 74
Hankyu Department Stores 7,000 50
Haseko* 15,000 10
Hitachi 63,000 465
Hokuriko Bank 2,000 4
Honda Motor 16,000 721
House Foods 3,000 42
Hoya 3,000 170
Industrial Bank of Japan 34,000 229
Isetan 2,000 19
Ito-Yokado 9,000 577
Itochu 40,000 83
Japan Airlines 36,000 117
Japan Energy 39,000 44
Joyo Bank 26,000 110
Jusco 6,000 104
Kajima 25,000 76
Kandenko 5,000 33
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Kaneka 6,000 $ 47
Kansai Electric Power 16,600 335
Kao 11,000 242
Kawasaki Kisen 24,000 47
Kawasaki Steel 69,000 116
Kinden 12,000 171
Kinki Nippon Railway 29,000 155
Kirin Brewery 22,000 257
Komatsu 23,000 118
Konica 3,000 13
Kubota 26,000 69
Kumagai Gumi* 46,000 40
Kurita Water Industries 4,000 65
Kyocera 3,200 172
Kyowa Hakko Kogyo 14,000 73
Makita 4,000 44
Marubeni 24,000 45
Marui 7,000 119
Matsushita Electric 37,000 719
Meiji Milk Products 6,000 19
Meiji Seika 15,000 67
Misawa Homes 4,000 14
Mitsubishi 33,000 215
Mitsubishi Chemical 13,000 37
Mitsubishi Electric 45,000 150
Mitsubishi Estate 28,000 284
Mitsubishi Heavy Industries 67,000 302
Mitsubishi Materials 34,000 73
Mitsubishi Oil* 17,000 29
Mitsubishi Trust & Banking 18,000 186
Mitsui 40,000 270
Mitsui Engineering & Shipbuilding* 30,000 28
Mitsui Fudosan Real Estate 7,000 63
Mitsui Marine and Fire Insurance 22,000 111
Mitsui Osk Lines 31,000 64
Mitsui Trust & Banking 17,000 25
Mori Seiki 2,000 23
Murata Manufacturing 5,000 265
Mycal 5,000 31
Nagase 2,000 8
Nagoya Railroad 18,000 63
Nankai Electric 14,000 67
NEC 28,000 336
New Oji Paper 23,000 122
NGK Insulators 8,000 90
NGK Spark Plug 4,000 46
Nichido Fire & Marine Insurance 9,000 53
Nichirei 11,000 23
Nippon Express 22,000 130
Nippon Fire & Marine Insurance 8,000 25
Nippon Light Metal 35,000 38
Nippon Oil 26,000 101
Nippon Paper Industries 13,000 65
Nippon Sheet Glass 22,000 76
Nippon Shokubai 2,000 11
Nippon Steel 103,000 211
Nippon Telegraph & Telephone 179 1,748
Nippon Yusen Kabushik 35,000 138
Nissan Motors 17,000 66
Nissin Food Products 3,000 66
Nitto Denko 3,000 53
NKK* 80,000 51
51 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Nomura Securities 32,000 $ 334
NSK 7,000 32
NTN 2,000 7
Obayashi 17,000 94
Odakyu Railway 19,000 71
Okamato Industries 13,000 31
Olympus Optical 7,000 92
Omron 6,000 75
Orix 1,400 105
Osaka Gas 41,000 141
Penta-Ocean Construction 1,000 2
Pioneer Electronics 3,000 56
Rohm 3,000 357
Sakura Bank 60,000 181
Sanawa Shutter 9,000 46
Sankyo 7,000 150
Sanyo Electric 36,000 126
Saporo Breweries 12,000 56
Secom 3,000 283
Sega Enterprises 2,000 36
Sekisui Chemical 13,000 92
Sekisui House 17,000 180
Sharp 17,000 179
Shimano 3,000 73
Shimizu 19,000 77
Shin-Etsu Chemical 7,000 183
Shiseido 8,000 110
Shizuoka Bank 14,000 169
Showa Denko 37,000 38
Sony 7,100 654
Sumitomo 21,000 137
Sumitomo Bank 48,000 648
Sumitomo Chemical 16,000 64
Sumitomo Electric 15,000 177
Sumitomo Forestry 3,000 21
Sumitomo Marine & Fire Insurance 15,000 96
Sumitomo Metal* 65,000 78
Sumitomo Metal Mining 11,000 47
Taiheiyo Cement 25,000 71
Taisei 12,000 28
Taisho Pharmaceutical 7,000 218
Takara Shuzo 5,000 32
Takashimaya 7,000 64
Takeda Chemical Industries 18,000 695
Teijin 26,000 105
Toa 9,000 16
Tobu Railway 1,000 3
Toho 470 64
Tohoku Electric Power 10,600 161
Tokai Bank 25,000 161
Tokio Marine & Fire Insurance 27,000 307
Tokyo Broadcasting System 4,000 51
Tokyo Dome* 4,000 23
Tokyo Electric Power 21,000 451
Tokyo Electron 3,000 155
Tokyo Gas 43,000 105
Tokyu 24,000 62
Toppan Printing 16,000 209
Toray 31,000 160
Tosho 35,000 65
Tostem 5,000 92
Toto 10,000 74
Toyo Seikan Kaisha 3,000 65
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Toyobo 31,000 $ 43
Toyoda Auto Loom 6,000 109
Toyota Motor 66,000 1,906
Ube Industries 39,000 75
Uniden Corportation 2,000 20
Yamaguchi Bank 4,000 43
Yamanouchi Pharmaceutical 7,000 221
Yamato Transport 8,000 130
Yamazaki Baking 5,000 67
Yasuda Trust & Banking* 28,000 34
Yokogawa Electric 7,000 34
------------
29,534
------------
MALAYSIA -- 0.6% (A)
AMMB Holdings 20,000 18
Amsteel 95,000 8
Edaran Otomobil Nasional 11,000 14
Gloden Hope Plantations 54,000 38
Highlands & Lowlands 30,000 17
Hong Leong Properties 80,000 13
Hume Industries 16,000 12
Magnum 60,500 29
Malayan Banking 80,000 149
Malaysia International Shipping 17,000 22
Malaysian Airline System 25,000 10
Malaysian Resources 44,000 10
Multi-Purpose Holdings* 66,000 21
Pan Malaysia Cement Works 55,000 14
Perusahaan Otomobil Nasional 4,000 5
Public Bank 89,199 50
Resorts World 27,000 33
RHB Capital* 20,000 12
Rothmans of Pall Mall 8,000 47
Silverstone* 3,325 --
Sime Darby 10,000 9
Technology Resources Industries 30,000 10
Telekom Malaysia 62,500 126
Tenaga Nasional 66,000 97
United Engineers* 28,000 13
YTL 15,750 20
------------
797
------------
NETHERLANDS -- 5.3%
ABN AMRO Holding 24,956 519
Ahold 9,917 379
Akzo Nobel 5,564 206
Buhrmann 1,772 31
Elsevier 13,457 200
Getronics 1,811 67
Heineken 6,143 309
Hoogovens 754 25
ING Groep 16,419 903
KLM 1,613 45
KPN 8,193 325
Pakhoed 867 21
Philips Electronics 6,224 506
Royal Dutch Petroleum 36,924 1,959
TNT Post Group 9,193 276
Unilever 11,092 769
Wolters Kluwer 1,261 228
------------
6,768
------------
52 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
INTERNATIONAL FUNDS
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
NEW ZEALAND -- 0.2%
Brierley Investments* 66,325 $ 16
Carter Holt Harvey 49,289 46
Fletcher Challenge Building 3,165 4
Fletcher Challenge Energy 4,794 9
Fletcher Challenge Forest* 19,179 8
Fletcher Challenge Paper 5,163 3
Lion Nathan 13,326 34
Telecom Corporation of New Zealand 33,302 162
------------
282
------------
NORWAY -- 0.4%
Bergesen, Cl A 2,400 33
Dyno Industrier 1,200 20
Hafslund, Cl A 3,850 23
Hafslund, Cl B 1,600 6
Kvaerner 1,450 26
Norsk Hydro 5,650 230
Norske Skogindustrier 700 23
Orkla, Cl A 5,000 77
Petroleum Geo-Services* 1,000 15
Storebrand* 9,124 67
------------
520
------------
SINGAPORE -- 0.6%
Asia Food & Properties* 666 --
City Developments 9,000 47
Cycle & Carriage 7,000 30
DBS Land 20,000 30
Development Bank of Singapore 10,500 80
Fraser & Neave 3,000 11
NatSteel 16,000 17
Oversea-Chinese Banking 20,135 136
Singapore Airlines 22,000 159
Singapore Press Holdings 8,038 89
Singapore Telecommunications 111,000 158
United Industrial 77,000 40
United Overseas Bank 5,000 31
------------
828
------------
SPAIN -- 3.1%
Acerinox 745 19
Argentaria 9,104 218
Autopistas Concesionaria Espanola 4,905 63
Banco Bilbao Vizcaya 40,155 597
Banco Central Hispanoamericano 21,150 265
Banco Santander 21,426 439
Corporacion Financiera Alba 179 26
Corporacion Mapfre 94 2
Endesa 17,984 453
FCC 860 53
Gas Natural SDG 2,456 226
Iberdrola 15,705 232
Metrovacesa 2,124 50
Repsol 5,148 265
Tabacalera, Cl A 3,315 67
Telefonica 18,668 790
Union Electrica Fenosa 4,413 66
Vallehermoso 2,745 29
Zardoya Otis 2,020 51
------------
3,911
------------
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
SWEDEN -- 2.7%
ABB, Cl A 12,950 $ 160
ABB, Cl B 5,500 68
AGA, Cl A 3,958 49
AGA, Cl B 3,450 43
Astra, Cl A 23,452 536
Astra, Cl B 7,933 179
Atlas Copco, Cl A 3,220 87
Drott, Cl B* 2,459 22
Electrolux, Cl B 8,955 177
Ericsson, Cl B 33,454 811
Hennes & Mauritz, Cl B 4,085 307
Skandia Forsakrings 10,330 192
Skandinaviska Enskilda Banken, Cl A 11,059 135
Skanska, Cl B 2,459 84
SKF, Cl B 3,000 43
Svenska Cellulosa, Cl B 4,410 95
Svenska Handelsbanken, Cl A 4,451 155
Swedish Match 20,354 71
Trelleborg, Cl B 2,000 19
Volvo, Cl A 3,737 96
Volvo, Cl B 5,915 155
------------
3,484
------------
SWITZERLAND -- 6.7%
ABB, Bearer 170 225
Adecco, Bearer 321 163
Alusuisse Lonza Group, Registered* 120 132
Credit Suisse Group, Registered 4,774 889
Holderbank Financiere Glarus, Bearer 141 158
Nestle, Registered 650 1,180
Novartis, Bearer 119 194
Novartis, Registered 1,086 1,760
Roche Holding, Bearer 24 428
Roche Holding, Genusscheine 116 1,413
SAirGroup, Registered 250 54
Schindler Holding, Participating Certificates 25 39
Schindler Holding, Registered 25 42
SGS Holding, Bearer 52 43
SGS Holding, Registered 1 --
Swatch Group, Bearer 56 36
Swatch Group, Registered 273 38
Swiss Reinsurance, Registered 262 579
UBS, Registered 3,666 1,151
Valora Holding, Registered 70 16
Zurich Allied, Registered 60 38
------------
8,578
------------
UNITED KINGDOM -- 21.8%
Abbey National 24,886 511
Allied Zurich* 31,245 420
Anglian Water 6,007 74
Arjo Wiggins Appleton 21,135 47
Associated British Foods 15,765 110
Barclays 24,874 714
Bass 16,415 223
BBA Group 9,021 62
BG 74,915 439
BICC Group 10,071 15
Blue Circle Industries 21,510 124
BOC Group 11,781 164
Boots 17,913 258
53 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
BP Amoco 106,003 $ 1,804
BPB 11,171 49
British Aerospace 34,024 227
British Airways 13,920 96
British American Tobacco 31,245 260
British Sky Broadcasting 35,649 305
British Steel 38,008 78
British Telecommunications 115,904 1,888
BTR Siebe 36,987 163
Burmah Castrol 4,461 68
Cable & Wireless 40,002 499
Cadbury Schweppes 22,324 323
Caradon 15,828 35
Carlton Communications 13,900 137
Centrica* 75,604 133
CGU 12,556 195
Coats Viyella 22,869 16
De La Rue 6,583 24
Diageo 62,135 697
Electrocomponents 9,618 71
Elementis 8,335 13
EMI Group 14,007 100
English China Clays 7,955 30
General Electric 56,794 511
GKN 9,305 141
Glaxo Wellcome 63,131 2,109
Granada Group 17,687 358
Great Universal Stores 20,164 219
Guardian Royal Exchange 16,467 97
Hammerson 10,193 68
Hanson 16,883 151
HSBC Holdings 30,703 976
HSBC Holdings (75p) 15,035 484
IMI 4,909 21
Imperial Chemical Industries 11,818 105
J Sainsbury 34,011 210
Johnson Matthey 4,897 37
Kingfisher 23,084 291
Ladbroke 33,285 152
Land Securities 2,531 33
Lasmo 21,742 44
Legal & General 25,307 298
Lloyds TSB 94,173 1,422
Lonrho 4,890 36
LucasVarity 29,589 137
Marks & Spencer 52,234 343
MEPC 12,784 90
National Grid Group 31,901 232
National Power 21,756 167
Next 6,829 78
Nycomed Amersham 258 2
Pearson 13,897 316
Peninsular and Oriental Steam Navigation 10,802 158
Pilkington 29,405 39
Provident Financial 5,269 79
Prudential 38,852 506
Racal Electronics 6,572 42
Rank Group 16,954 62
Reed International 22,618 201
Reuters Group 28,619 420
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Rexam 12,784 $ 42
Rio Tinto 20,309 281
RMC Group 6,560 89
Rolls-Royce 33,703 142
Royal & Sun Alliance Insurance Group 29,523 278
Royal Bank of Scotland Group 17,283 375
Safeway 23,210 91
Schroders 5,194 120
Scottish & Newcastle 13,226 144
Scottish & Southern Energy 10,510 95
Scottish Power 22,765 198
Sears 2,797 16
Selfridges 2,797 11
Slough Estates 9,571 49
SmithKline Beecham 97,428 1,403
Smiths Industries 6,601 96
Tate & Lyle 10,382 69
Tesco 126,894 335
Thames Water 8,322 126
TI Group 10,548 68
Unilever 62,967 584
United Biscuits 13,488 41
United Utilities 11,993 143
Vodafone Group 60,184 1,116
Williams 16,024 103
Wolseley 12,805 97
Zeneca Group 17,854 843
------------
27,962
------------
TOTAL FOREIGN COMMON STOCKS
(Cost $99,376) 123,614
------------
FOREIGN PREFERRED STOCKS -- 0.5%
AUSTRALIA -- 0.2%
News Corporation* 35,455 244
------------
GERMANY -- 0.3%
RWE* 250 7
SAP* 710 228
Volkswagen* 2,000 80
------------
315
------------
ITALY -- 0.0%
Fiat* 31,900 54
------------
TOTAL FOREIGN PREFERRED STOCKS
(Cost $435) 613
------------
FOREIGN WARRANTS -- 0.0%
BELGIUM -- 0.0%
Tractebel Warrants, expire 11/30/99* 329 --
------------
FRANCE -- 0.0%
Vivendi Warrants, expire 05/02/01* 4,019 10
------------
54 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
INTERNATIONAL FUNDS
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
HONG KONG -- 0.0%
Chinese Estates Holdings Warrants,
expire 11/24/99* 10,429 $--
Chinese Estates Holdings Warrants,
expire 11/24/00* 10,429 --
Hong Kong and China Gas Warrants,
expire 09/30/99* 4,755 --
Hysan Develop Warrants,
expire 04/30/99* 2,500 --
Wharf Holdings Warrants,
expire 12/31/99* 2,150 --
------------
--
------------
MALAYSIA -- 0.0% (A)
YTL Warrants, expire 09/20/02* 3,050 1
------------
SINGAPORE -- 0.0%
Asia Food & Properties Warrants,
expire 07/12/02* 2,900 --
------------
SWITZERLAND -- 0.0%
UBS Warrants, expire 06/30/00* 195 3
------------
TOTAL FOREIGN WARRANTS
(Cost $0) 14
------------
RELATED PARTY MONEY MARKET FUND -- 2.6%
First American Prime Obligations
Fund (B) 3,303,777 3,304
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $3,304) 3,304
------------
TOTAL INVESTMENTS -- 99.5%
(Cost $103,115) 127,545
------------
OTHER ASSETS AND LIABILITIES, NET -- 0.5% 626
------------
INTERNATIONAL INDEX FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital--Class-A
($.0001 par value--2 billion authorized)
based on 173,726 outstanding shares $ 1,746
Portfolio Capital--Class-B
($.0001 par value--2 billion authorized)
based on 38,527 outstanding shares 455
Portfolio Capital--Class-Y
($.0001 par value--2 billion authorized)
based on 10,354,468 outstanding shares 102,628
Accumulated net investment loss (290)
Accumulated net realized loss on investments (783)
Net unrealized appreciation of investments 24,430
Net unrealized depreciation of forward foreign
currency contracts, foreign currency and
translation of other assets and liabilities
in foreign currency (15)
------------
TOTAL NET ASSETS -- 100.0% $ 128,171
------------
Net asset value and redemption
price per share--Class-A $ 12.09
Maximum sales charge of 5.25% (C) 0.67
------------
Offering price per share--Class-A $ 12.76
------------
Net asset value and offering
price per share--Class-B (D) $ 12.06
------------
Net asset value, offering price, and
redemption price per share--Class-Y $ 12.13
------------
* Non-income producing security
(A)The repatriation of proceeds received from the sale of these securities are
subject to a levy depending upon the length of time the position has been
held. This levy is applicable to securities purchased before February 15,
1999. These securities are considered illiquid until September 1, 1999, when
the levy is no longer in effect.
(B)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.
(C)The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 5.25%.
(D)Class-B has a contingent deferred sales charge. For a description of a
possible redemption charge, see the notes to the financial statements.
Cl--Class
RNC--Risparmio Non-Convertible
The accompanying notes are an integral part of the financial statements.
55 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
OPERATIONS FOR THE SIX MONTHS ENDED MARCH 31, 1999, (UNAUDITED)
IN THOUSANDS
<TABLE>
<CAPTION>
EMERGING INTERNATIONAL INTERNATIONAL
MARKETS FUND FUND INDEX FUND
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 5 $ 77 $ 1
Dividends 104 1,476 831
Less: Foreign taxes withheld (1) (406) (82)
- -------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 108 1,147 750
=============================================================================================================
EXPENSES:
Investment advisory fees 146 2,662 422
Less: Waiver of investment advisory fees (47) (336) (150)
Administrator fees 23 232 73
Transfer agent fees 28 62 17
Amortization of organizational costs 6 1 --
Custodian fees 12 213 60
Directors' fees -- 4 1
Registration fees -- 18 6
Professional fees -- 2 1
Printing 1 13 4
Pricing fees -- 2 4
Distribution fees - class-A 7 55 3
Distribution fees - class-B -- 16 1
Other -- 3 14
- -------------------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 176 2,947 456
=============================================================================================================
Investment income (loss) - net (68) (1,800) 294
- -------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS (LOSSES)
ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS - NET:
Net realized gain (loss) on investments (2,137) 24,089 (638)
Net realized gain (loss) on forward foreign currency
contracts and foreign currency transactions (44) 4,621 (2)
Net change in unrealized appreciation of investments 2,193 36,748 23,920
Net change in unrealized depreciation of forward
foreign currency contracts, foreign currency and
translation of other assets and liabilities in foreign
currency (6) (73) (43)
- -------------------------------------------------------------------------------------------------------------
NET GAIN ON INVESTMENTS 6 65,385 23,237
=============================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ (62) $ 63,585 $ 23,531
=============================================================================================================
</TABLE>
The accompanying notes are an integral part of the financial statements.
56 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
INTERNATIONAL FUNDS
STATEMENTS OF
CHANGES IN NET ASSETS IN THOUSANDS
<TABLE>
<CAPTION>
EMERGING INTERNATIONAL INTERNATIONAL
MARKETS FUND FUND INDEX FUND
- ----------------------------------------------------------------------------------------------------------------------------------
10/1/98 10/1/97 10/1/98 10/1/97 10/1/98 12/1/97 8/1/97
to to to to to to to
3/31/99 9/30/98 3/31/99 9/30/98 3/31/99 9/30/98 11/30/97
- ----------------------------------------------------------------------------------------------------------------------------------
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Investment income (loss) - net $ (68) $ (53) $ (1,800) $ 1,320 $ 294 $ 1,616 $ 828
Net realized gain (loss) on investments (2,137) (3,379) 24,089 28,363 (638) 5,074 3,662
Net realized gain (loss) on forward foreign
currency contracts and foreign currency
transactions (44) (66) 4,621 (12,864) (2) (108) (142)
Net change in unrealized appreciation
(depreciation) of investments 2,193 (4,319) 36,748 (24,639) 23,920 (3,880) (28,010)
Net change in unrealized appreciation
(depreciation) of purchased options contracts,
forward foreign currency contracts, foreign
currency and translation of other assets and
liabilities in foreign currency (6) 1 (73) 1,430 (43) 36 5
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations (62) (7,816) 63,585 (6,390) 23,531 2,738 (23,657)
- ----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
International Funds Investment income - net:
Class-A -- (32) (209) (107)(A) (15) (23) (3)
Class-B -- (1) -- (74)(A) (1) (1) --
Class-C -- -- -- -- -- -- --
Class-Y -- -- (2,103) (9,364)(A) (519) (2,609) (512)
Net realized gain on investments:
Class-A -- -- (2,619) (56) (146) -- --
Class-B -- -- (172) (44) (11) -- --
Class-C -- -- -- -- -- -- --
Class-Y -- -- (20,723) (4,550) (8,207) -- --
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS -- (33) (25,826) (14,195) (8,899) (2,633) (515)
==================================================================================================================================
CAPITAL SHARE TRANSACTIONS(1):
Class-A:
Proceeds from sales 172 778 46,524 217,153 2,167 1,057 49
Shares issued in connection with acquisition
of Piper Fund -- -- -- 47,464 -- -- --
Reinvestment of distributions -- 32 2,677 156 149 22 3
Payments for redemptions (1,336) (5,929) (51,355) (227,336) (2,421) (375) (215)
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from class-A
transactions (1,164) (5,119) (2,154) 37,437 (105) 704 (163)
- ----------------------------------------------------------------------------------------------------------------------------------
Class-B:
Proceeds from sales - FAIF 2 1 441 1,142 321 151 1
Proceeds from sales - Piper -- 28 -- -- -- -- --
Reinvestment of distributions - FAIF -- -- 169 114 12 1 --
Reinvestment of distributions - Piper -- 1 -- -- -- -- --
Payments for redemptions - FAIF -- -- (376) (367) (13) (18) --
Payments for redemptions - Piper -- (304) -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in net assets from class-B
transactions 2 (274) 234 889 320 134 1
- ----------------------------------------------------------------------------------------------------------------------------------
Class-C:
Proceeds from sales -- -- 220 -- -- -- --
Reinvestment of distributions -- -- -- -- -- -- --
Payments for redemptions -- -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from class-C transactions -- -- 220 -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Class-Y
Proceeds from sales 27,912 8,789 95,489 244,177 5,461 26,388 34,854
Shares issued in connection with acquisition
of Piper Fund -- -- -- 3,757 -- -- --
Reinvestment of distributions -- -- 12,193 7,847 6,972 2,039 333
Payments for redemptions (1,186) (26) (78,249) (100,556) (6,251) (79,475) (65,749)
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from class-Y
transactions 26,726 8,763 29,433 155,225 6,182 (51,048) (30,562)
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital
share transactions 25,564 3,370 27,733 193,551 6,397 (50,210) (30,724)
- ----------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 25,502 (4,479) 65,492 172,966 21,029 (50,105) (54,896)
NET ASSETS AT BEGINNING OF PERIOD 12,829 17,308 400,571 227,605 107,142 157,247 212,143
==================================================================================================================================
NET ASSETS AT END OF PERIOD (2) $ 38,331 $ 12,829 $ 466,063 $ 400,571 $ 128,171 $ 107,142 $ 157,247
==================================================================================================================================
</TABLE>
(1)See note 4 in the notes to the financial statements for additional
information.
(2)Includes undistributed net investment income (loss and/or distributions in
excess of net investment income) (000) of $(166) and $(54) for Emerging
Markets Fund, $(10,010) and $(10,519) for International Fund, and $(290),
$(47), and $1,019 for International Index Fund as of March 31, 1999, and
September 30, 1998, respectively and November 30, 1997 (for International
Index Fund only).
(A)Represents a distribution in excess of net investment income due to the tax
treatment of foreign currency related transactions.
The accompanying notes are an integral part of the financial statements.
57 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING, THROUGHOUT THE PERIODS
ENDED SEPTEMBER 30, UNLESS OTHERWISE INDICATED
<TABLE>
<CAPTION>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS DISTRIBUTION
VALUE NET GAINS OR FROM NET DISTRIBUTIONS FROM
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM RETURN OF
OF PERIOD INCOME (LOSS) INVESTMENTS INCOME CAPITAL GAINS CAPITAL
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EMERGING MARKETS FUND
Class-A(1)
1999*(unaudited) $ 5.61 $(0.06) $ 0.42 $ -- $ -- $ --
1998 10.96 (0.15) (5.18) (0.02) -- --
1997 8.85 0.02 2.10 (0.01) -- --
1996(2) 8.84 0.01 -- -- -- --
1996(3) 7.20 0.01 1.63 -- -- --
1995(4) 9.14 -- (1.94) -- -- --
1994(4)(5) 10.00 0.01 (0.87) -- -- --
Class-B - FAIF
1999*(unaudited) $ 5.60 $(0.02) $ 0.37 $ -- $ -- $ --
1998(6) 7.27 -- (1.67) -- -- --
Class-B - Piper
1998(7) $10.86 $(0.08) $(1.07) $(0.02) $ -- $ --
1997(8) 10.13 0.00 0.73 -- -- --
Class-Y
1999*(unaudited) $ 5.62 $(0.04) $ 0.41 $ -- $ -- $ --
1998(6) 7.27 0.01 (1.66) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL FUND
Class-A
1999*(unaudited) $12.55 $(0.08) $ 2.03 $(0.06) $(0.72) $ --
1998 13.18 0.06 0.02 (0.46)(C) (0.25) --
1997 10.28 0.01 3.04 (0.15)(C) -- --
1996 10.28 (0.02) 0.20 (0.18)(C) -- --
1995 10.21 -- 0.07 -- -- --
1994(9) 9.98 (0.01) 0.24 -- -- --
Class-B
1999*(unaudited) $12.27 $(0.15) $ 2.01 $ -- $(0.72) $ --
1998 12.97 (0.07) 0.03 (0.41)(C) (0.25) --
1997 10.14 (0.08) 3.01 (0.10)(C) -- --
1996 10.20 (0.07) 0.17 (0.16)(C) -- --
1995 10.21 (0.03) 0.02 -- -- --
1994(10) 10.23 (0.01) (0.01) -- -- --
Class-C
1999(11) (unaudited) $14.32 $(0.02) $(0.58) $ -- $ -- $ --
Class-Y
1999*(unaudited) $12.55 $(0.01) $ 1.98 $(0.08) $(0.72) $ --
1998 13.23 0.07 0.01 (0.51)(C) (0.25) --
1997 10.31 0.03 3.06 (0.17)(C) -- --
1996 10.30 (0.01) 0.22 (0.20)(C) -- --
1995 10.22 0.01 0.07 -- -- --
1994(12) 10.00 (0.01) 0.23 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL INDEX FUND(B)
Class-A
1999*(unaudited) $10.69 $(0.03) $ 2.33 $(0.05) $(0.85) $ --
1998(13) 10.94 0.11 (0.20) (0.16) -- --
1997(14) 12.32 0.05 (1.41) (0.02) -- --
1997(15) 10.64 0.10 1.70 (0.09) (0.02) (0.01)
1996(15) 10.45 0.07 0.17 (0.05) -- --
1995(15)(16) 10.00 -- 0.45 -- -- --
Class-B
1999*(unaudited) $10.68 $ 0.02 $ 2.24 $(0.03) $(0.85) $ --
1998(13) 10.99 0.05 (0.21) (0.15) -- --
1997(17)(18) 11.08 -- (0.09) -- -- --
Class-Y
1999*(unaudited) $10.71 $ 0.03 $ 2.29 $(0.05) $(0.85) $ --
1998(13) 10.99 0.14 (0.20) (0.22) -- --
1997(14) 12.37 0.06 (1.41) (0.03) -- --
1997(15) 10.69 0.13 1.70 (0.12) (0.02) (0.01)
1996(15) 10.48 0.09 0.18 (0.06) -- --
1995(15)(16) 10.00 0.01 0.47 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Returns are for the period indicated and have not been annualized.
* For the six month period ended March 31. All ratios for the period have been
annualized.
(A)Excluding sales charges.
(B)The financial highlights for International Index Fund as set forth herein
include the historical financial highlights of the Qualivest International
Opportunities Fund class-A and class-Y shares. The assets of the
International Opportunities Fund were acquired by International Index Fund on
November 21, 1997. In connection with such acquisition, (i) class-A and
class-C shares of the Qualivest International Opportunities Fund were
exchanged for class-A shares of International Index Fund; and (ii) Qualivest
class-Y shares were exchanged for class-Y shares of International Index Fund.
(C)Includes distributions in excess of net investment income due to tax
treatment of foreign currency related transactions.
(1)The financial highlights for Emerging Markets Fund as set forth herein
include the historical financial highlights of the Piper Emerging Markets
Growth Fund class-A shares. The assets of the Piper Emerging Markets Growth
Fund were acquired by Emerging Markets Fund on August 7, 1998. In connection
with such acquisition, class-A shares of the Piper Emerging Markets Growth
Fund were exchanged for class-A shares of the Emerging Markets Fund. On
August 7, 1998, the fund's advisor changed from Piper Capital Management,
Inc. to U.S. Bank N.A.
(2)For the three month period July 1, 1996, to September 30, 1996. All ratios
for the period have been annualized.
(3)Emerging Markets Growth Fund commenced operations and acquired the net assets
of Hercules Latin American Value Fund on June 21, 1996, via a tax-free
reorganization. Emerging Markets Growth Fund had no assets or liabilities
prior to the acquisition. Consequently, the information presented for
Emerging Markets Growth Fund prior to June 21, 1996, represents the financial
history of Hercules Latin American Value Fund. As a result of the
reorganization, the fund's subadvisor changed from Bankers Trust Company to
Edinburgh Fund Managers plc. On July 18, 1995, shareholders of Hercules Latin
American Value Fund approved a change in the fund's advisor from Hercules
International Management LLC to Piper Capital Management Incorporated.
(4)For the period ended June 30.
58 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
INTERNATIONAL FUNDS
<TABLE>
<CAPTION>
RATIO OF
RATIO OF NET EXPENSES TO
NET ASSET RATIO OF INVESTMENT AVERAGE
VALUE NET ASSETS EXPENSES TO INCOME (LOSS) NET ASSETS PORTFOLIO
END OF TOTAL END OF AVERAGE TO AVERAGE (EXCLUDING TURNOVER
PERIOD RETURN (A) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) RATE
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 5.97 6.42%+ $ 4,598 1.70% (0.59)% 2.10% 72%
5.61 (48.91) 5,384 1.96 (1.09) 3.43 48
10.96 23.91 16,998 2.00 0.17 3.34 105
8.85 0.11+ 13,772 2.00 0.26 4.09 0
8.84 22.78 13,936 2.00 0.26 3.54 140
7.20 (21.23) 22,624 2.00 0.15 3.47 161
9.14 (8.60) 27,750 2.00 (0.03) 3.10 78
$ 5.95 6.25%+ $ 3 2.45% (1.46)% 2.87% 72%
5.60 (22.97)+ 1 2.46 (0.43) 4.30 48
$ 9.69 (10.59)%+ $ -- 2.76% (2.24)% 4.12% 34%
10.86 7.21 310 2.64 0.03 3.39 105
$ 5.99 6.58%+ $ 33,730 1.45% (0.59)% 1.85% 72%
5.62 (22.70)+ 7,444 1.46 0.83 3.30 48
- ----------------------------------------------------------------------------------------------------------------
$13.72 15.94%+ $ 44,817 1.60% (1.07)% 1.76% 82%
12.55 1.11 40,204 1.69 0.13 1.81 102
13.18 30.03 8,003 1.92 (0.09) 1.92 96
10.28 1.84 1,964 1.97 (0.28) 1.97 100
10.28 0.69 876 1.93 (0.13) 2.06 57
10.21 2.30+ 464 1.75 (0.26) 2.30 16
$13.41 15.55%+ $ 3,568 2.35% (1.83)% 2.52% 82%
12.27 0.13 2,892 2.44 (0.64) 2.56 102
12.97 29.13 2,188 2.67 (0.94) 2.67 96
10.14 1.02 1,175 2.72 (0.96) 2.72 100
10.20 (0.10) 306 2.76 (0.95) 2.81 57
10.21 (0.20)+ 22 2.75 (0.71) 3.05 16
$13.72 (4.19)%+ $ 222 2.35% (1.67)% 2.58% 82%
$13.72 16.07%+ $417,456 1.35% (0.81)% 1.51% 82%
12.55 1.15 357,475 1.44 0.42 1.56 102
13.23 30.38 217,414 1.67 0.06 1.67 96
10.31 2.11 135,238 1.72 (0.06) 1.72 100
10.30 0.78 94,400 1.74 0.12 1.81 57
10.22 2.20+ 47,963 1.75 (0.19) 2.05 16
- ----------------------------------------------------------------------------------------------------------------
$12.09 22.26%+ $ 2,100 1.00% 0.15% 1.25% 0%
10.69 (1.05)+ 1,873 0.99 1.21 1.22 0
10.94 (11.03)+ 1,270 0.92 0.98 1.21 0
12.32 17.03 1,605 0.98 0.90 1.28 3
10.64 2.29 2,005 1.06 0.84 1.35 6
10.45 4.50+ 20 1.40 0.23 1.54 0
$12.06 21.77%+ $ 465 1.75% (0.27)% 2.00% 0%
10.68 (1.53)+ 118 1.74 0.72 1.97 0
10.99 (0.36)+ 1 1.29 0.00 1.29 0
$12.13 22.33%+ $125,606 0.75% 0.50% 1.00% 0%
10.71 (0.73)+ 105,151 0.74 1.42 0.97 0
10.99 (10.93)+ 155,976 0.66 1.23 0.95 0
12.37 17.24 210,538 0.73 1.15 1.03 3
10.69 2.56 142,478 0.81 1.18 1.10 6
10.48 4.80+ 60,073 1.18 1.32 1.39 0
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
(5)Commenced operations of Hercules Latin American Value Fund on November 9,
1993. All ratios for the period have been annualized.
(6)Class-Y and class-B shares have been offered since August 10, 1998. All
ratios for the period have been annualized.
(7)Effective April 28, 1998 all shareholders were exchanged into class-A.
Class-B share activity was discontinued. All ratios for the period have been
annualized.
(8)Class-B shares have been offered since February 18, 1997. All ratios for the
period have been annualized.
(9)Class-A shares have been offered since April 7, 1994. All ratios for the
period have been annualized.
(10)Class-B shares have been offered since August 15, 1994. All ratios for the
period have been annualized.
(11)For the six month period ended March 31. Class-C shares have been offered
since February 1, 1999. All ratios for the period have been annualized.
(12)Commenced operations on April 4, 1994. All ratios for the period have been
annualized.
(13)For the period December 1, 1997 to September 30, 1998. All ratios for the
period have been annualized. The First American board of directors approved
a change in the fund's fiscal year end from November 30 to September 30,
effective September 30, 1998.
(14)For the period August 1, 1997 to November 30, 1997. All ratios for the
period have been annualized. The First American board of directors approved
a change in the fund's fiscal year end from July 31 to November 30,
effective November 30, 1997.
(15)For the period ended July 31.
(16)Commenced operations on July 3, 1995. All ratios for the period have been
annualized.
(17)Class-B shares have been offered since November 24, 1997. All ratios for the
period have been annualized.
(18)For the period November 24, 1997 to November 30, 1997.
59 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
HEALTH SCIENCES FUND
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS -- 96.3%
HEALTHCARE -- 85.1%
BIOTECHNOLOGY -- 11.7%
Amgen* 3,000 $ 225
Biochem Pharmaceuticals* 7,700 164
Biogen* 5,500 629
Centocor* 9,000 332
Protein Design Laboratories* 22,000 331
Ventana Medical Systems* 15,400 345
------------
2,026
------------
DIVERSIFIED HEALTH CARE -- 4.9%
Allergan 4,000 351
Warner Lambert 7,700 510
------------
861
------------
DRUGS -- 29.8%
Algos Pharmaceuticals* 23,000 566
Elan, ADR* 11,000 767
Merck 7,200 577
Pfizer 10,000 1,387
Pharmacia & Upjohn 7,500 468
Schering Plough 5,400 299
Sepracor* 6,000 674
SmithKline Beecham, ADR 6,000 429
------------
5,167
------------
HOSPITAL -- 1.9%
Health Management Associates, Cl A* 27,000 329
------------
MANAGED CARE -- 4.3%
American Oncology Resources* 34,000 306
United Healthcare 8,400 442
------------
748
------------
MEDICAL -- 27.4%
Arrow International 15,000 323
ATS Medical* 57,475 431
Baxter International 3,000 198
Becton Dickinson 11,700 448
Boston Scientific* 18,000 730
Guidant 4,000 242
Lifecore Biomedical* 55,000 478
Medtronic 12,627 906
Micro Therapeutics* 37,000 241
Novoste* 10,000 240
Perclose* 12,000 372
Vysis* 44,000 150
------------
4,759
------------
SPECIAL CARE -- 5.1%
Alza, Cl A* 12,000 459
Nanogen* 45,000 433
------------
892
------------
TOTAL HEALTHCARE 14,782
------------
BASIC MATERIALS -- 3.6%
Monsanto 13,500 620
------------
CONSUMER STAPLES -- 1.1%
Cardinal Health 2,800 185
------------
HEALTH SCIENCES FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
FINANCIALS -- 6.5%
Healthcare Realty Trust 20,000 $ 380
National Health Investors 16,000 344
Nationwide Health Properties 21,000 399
------------
1,123
------------
TOTAL COMMON STOCKS
(Cost $15,310) 16,710
------------
RELATED PARTY MONEY MARKET FUND -- 1.3%
First American Prime Obligations
Fund (A) 226,670 227
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $227) 227
------------
TOTAL INVESTMENTS -- 97.6%
(Cost $15,537) 16,937
------------
OTHER ASSETS AND LIABILITIES, NET -- 2.4% (B) 418
------------
NET ASSETS:
Portfolio Capital--Class-A
($.0001 par value--2 billion authorized)
based on 114,186 outstanding shares 1,641
Portfolio Capital--Class-B
($.0001 par value--2 billion authorized)
based on 86,493 outstanding shares 851
Portfolio Capital--Class-Y
($.0001 par value--2 billion authorized)
based on 1,850,430 outstanding shares 13,784
Undistributed net investment income 6
Accumulated net realized loss on investments (327)
Net unrealized appreciation of investments 1,400
------------
TOTAL NET ASSETS -- 100.0% $ 17,355
------------
Net asset value and redemption
price per share--Class-A $ 8.44
Maximum sales charge of 5.25% (C) 0.47
------------
Offering price per share--Class-A $ 8.91
------------
Net asset value and offering
price per share--Class-B (D) $ 8.24
------------
Net asset value, offering price, and
redemption price per share--Class-Y $ 8.47
------------
* Non-income producing security
(A)This money market fund is advised by U.S. Bank National Association who also
serves as advisor for this fund. See the notes to the financial statements.
(B)Other assets and liabilities representing greater than five percent of total
net assets include the following (000):
Cash collateral received for securities on loan $ 5,339
Payable upon return of securities on loan $(5,339)
(C)The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 5.25%.
(D)Class-B has a contingent deferred sales charge. For a description of a
possible redemption charge, see the notes to the financial statements.
ADR--American Depositary Receipt
Cl--Class
The accompanying notes are an integral part of the financial statements.
60 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
SECTOR FUNDS
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
REAL ESTATE SECURITIES FUND
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS -- 95.3%
REAL ESTATE INVESTMENT TRUST -- 95.3%
DIVERSIFIED -- 8.8%
Colonial Properties Trust 35,000 $ 892
Crescent Operating* 2,500 9
Crescent Real Estate Equities 68,000 1,462
Duke Realty Investments 35,000 752
Glenborough Realty Trust 53,000 901
Pennsylvania Real Estate Investment Trust 45,000 841
Reckson Service Industries* 12,000 54
Rouse Company 26,000 577
------------
5,488
------------
HEALTHCARE FACILITIES -- 1.8%
Health Care 27,000 580
HRPT Properties Trust 40,000 540
------------
1,120
------------
HOTELS -- 7.2%
Felcor Lodging Trust 42,000 974
Hospitality Properties Trust 45,000 1,218
Host Marriott 55,000 612
Innkeepers USA Trust 60,000 559
Lasalle Hotel Properties 28,300 375
Starwood Hotels and Resorts World Wide* 25,000 714
------------
4,452
------------
OFFICE/INDUSTRIAL -- 30.2%
Amb Property 55,000 1,141
Arden Realty Group 50,000 1,112
Beacon Capital Partnership* (A) 33,750 510
Bedford Property Investors 34,000 497
Boston Properties 42,000 1,328
Brandywine Realty Trust 35,000 569
Cabot Industrial Trust 40,000 755
Centerpoint Properties 19,000 594
Equity Office Properties Trust 130,000 3,307
Great Lakes Real Estate 41,000 595
Liberty Property Trust 53,600 1,112
Mack Cali Realty 40,000 1,175
Prologis Trust 85,000 1,743
Reckson Associates 30,000 617
SL Green Realty 35,000 658
Spieker Properties 45,000 1,586
Trizec Hahn 32,000 588
Weeks 30,000 857
------------
18,744
------------
RESIDENTIAL -- 17.8%
Apartment Investment & Management 28,000 1,015
Archstone Community Trust 100,000 2,013
Avalonbay Communities 40,000 1,265
Chateau Communities 32,000 880
Equity Residential Properties Trust 74,150 3,059
Gables Residential Trust 35,000 772
Home Properties of New York 24,000 555
Post Properties 22,100 796
United Dominion Realty Trust 67,000 687
Wellsford Real Properties* 6,100 53
------------
11,095
------------
REAL ESTATE SECURITIES FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
RETAIL -- 18.2%
Bradley Real Estate 50,000 $ 906
CBL & Associates Properties 44,000 1,023
Chelsea GCA Realty 20,000 558
Excel Legacy* 27,100 93
Federal Realty Investment Trust 40,000 848
JDN Realty 30,000 596
Kimco Realty 15,000 553
Macerich 25,000 567
Mills 36,000 646
New Plan Excel Realty Trust 54,000 1,036
Simon Property Group 85,000 2,332
Taubman Centers 26,000 319
Vornado Operating* 2,350 14
Vornado Realty Trust 52,000 1,794
------------
11,285
------------
SELF STORAGE -- 3.9%
Public Storage 62,736 1,568
Storage USA 30,000 851
------------
2,419
------------
SPECIALTY REAL ESTATE -- 7.4%
Alexandria Real Estate Equities 30,000 793
Capital Automotive 55,000 684
Fortress Investment* (A) 35,000 591
Franchise Finance of America 30,000 632
Golf Trust of America 26,100 584
Meditrust 50,000 622
Prison Realty 39,700 692
------------
4,598
------------
TOTAL COMMON STOCKS
(Cost $65,142) 59,201
------------
PREFERRED STOCK -- 0.4%
Walden Residential Properties 10,000 209
------------
TOTAL PREFERRED STOCK
(Cost $238) 209
------------
CONVERTIBLE BOND -- 1.4%
Avatar Holdings, 31.4465 shares
7.000%, 04/01/05 $ 1,000 888
------------
TOTAL CONVERTIBLE BOND
(Cost $1,017) 888
------------
WARRANT -- 0.0%
Walden Residential Properties* 10,000 5
------------
TOTAL WARRANT
(Cost $12) 5
------------
RELATED PARTY MONEY MARKET FUND -- 1.5%
First American Prime Obligations
Fund (B) 909,907 910
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $910) 910
------------
61 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
NET ASSETS MARCH 31, 1999 (UNAUDITED)
REAL ESTATE SECURITIES FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 98.6%
(Cost $67,319) $ 61,213
------------
OTHER ASSETS AND LIABILITIES, NET -- 1.4% (C) 896
------------
NET ASSETS:
Portfolio Capital--Class-A
($.0001 par value--2 billion authorized)
based on 158,054 outstanding shares 2,072
Portfolio Capital--Class-B
($.0001 par value--2 billion authorized)
based on 230,304 outstanding shares 3,027
Portfolio Capital--Class-Y
($.0001 par value--2 billion authorized)
based on 5,204,614 outstanding shares 66,598
Accumulated net investment loss (306)
Accumulated net realized loss on investments (3,176)
Net unrealized depreciation of investments (6,106)
------------
TOTAL NET ASSETS -- 100.0% $ 62,109
------------
Net asset value and redemption
price per share--Class-A $ 11.09
Maximum sales charge of 5.25% (D) 0.61
------------
Offering price per share--Class-A $ 11.70
------------
Net asset value and offering
price per share--Class-B (E) $ 11.00
------------
Net asset value, offering price, and
redemption price per share--Class-Y $ 11.11
------------
* Non-income producing security
(A)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".
(B)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.
(C)Other assets and liabilities representing greater than five percent of total
net assets include the following (000):
Cash collateral received for securities on loan $ 10,659
Payable upon return of securities on loan $(10,659)
(D)The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 5.25%.
(E)Class-B has a contingent deferred sales charge. For a description of a
possible redemption charge, see the notes to the financial statements.
The accompanying notes are an integral part of the financial statements.
TECHNOLOGY FUND
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS -- 96.5%
TECHNOLOGY -- 73.8%
COMPUTER HARDWARE -- 8.2%
Dell Computer* 140,000 $ 5,722
Sun Microsystems* 72,000 9,004
------------
14,726
------------
COMPUTER NETWORKING -- 10.3%
Ascend Communications* 110,000 9,206
Cisco Systems* 85,000 9,313
------------
18,519
------------
COMPUTER PERIPHERAL -- 1.6%
Seagate Technology* 100,000 2,956
------------
COMPUTER SOFTWARE/SERVICES -- 25.7%
Amdocs* 75,000 1,622
America Online* 40,000 5,840
Aspect Development* 100,000 2,325
BMC Software* 60,000 2,224
Critical Path* 7,500 578
Descartes Systems Group* 50,000 384
Electronic Arts* 60,000 2,850
I2 Technologies* 90,000 2,393
Information Advantage* 145,000 961
Infospace.com* 10,000 886
Inktomi* 20,000 1,715
International Network Services* 20,000 1,399
Legato Systems* 40,000 2,065
Mechanical Dynamics* 40,000 250
Micromuse* 35,000 1,610
Microsoft* 40,000 3,585
Miningo.com* 2,300 206
Netgravity* 42,600 1,763
Sapient* 45,000 3,212
Siebel Systems* 50,000 2,375
Softworks* 80,000 1,140
Symix Systems* 65,000 991
USWeb* 50,000 2,062
Veritas Software* 15,000 1,211
Visual Networks* 40,000 1,495
Webtrends Corp* 23,500 1,143
------------
46,285
------------
ELECTRONIC SEMICONDUCTORS -- 14.1%
Conexant Systems* 80,000 2,215
Linear Technology 40,000 2,050
Maxim Integrated Products* 30,000 1,624
Pericom Semiconductor* 90,000 759
PMC-Sierra* 36,000 2,563
Taiwan Semiconductor, ADR* 250,000 5,906
Transwitch* 30,000 1,358
Uniphase* 30,000 3,454
Vitesse Semiconductor* 35,000 1,772
Xilinx* 90,000 3,651
------------
25,352
------------
62 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
SECTOR FUNDS
TECHNOLOGY FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
EQUIPMENT SEMICONDUCTORS -- 11.7%
Applied Materials* 100,000 $ 6,169
ASM Lithography Holding H.V.* 100,000 4,500
Cypress Semiconductor* 100,000 900
Intel 28,000 3,329
MKS Instruments* 75,000 1,003
Novellus Systems* 35,000 1,929
Teradyne* 59,500 3,246
------------
21,076
------------
SERVICES COMPUTER SYSTEMS -- 2.2%
Electronic Data Systems 80,000 3,895
------------
TOTAL TECHNOLOGY 132,809
------------
BASIC MATERIALS -- 0.4%
Atmi* 40,000 800
------------
CAPITAL GOODS -- 1.3%
Dupont Photomasks* 60,000 2,377
------------
COMMUNICATION EQUIPMENT -- 10.6%
General Instrument* 70,000 2,122
Nokia, ADR 60,000 9,345
Orckit Communications* 80,000 1,665
P-Com* 180,000 1,372
Tellabs* 40,000 3,910
Viasat* 75,000 670
------------
19,084
------------
COMMUNICATION SERVICES -- 3.5%
Concentric Network* 30,000 2,242
Covad Communications Group* 30,000 1,973
Global Crossing* 10,000 462
RSL Communications, Cl A* 45,400 1,632
------------
6,309
------------
CONSUMER CYCLICALS -- 4.2%
Autoweb.com* 25,500 908
Cheap Tickets* 33,200 1,116
Checkfree Holdings* 40,000 1,703
Gartner Group, Cl A* 100,000 2,256
Valley Media* 42,600 969
Ziff-Davis* 14,600 526
------------
7,478
------------
FINANCIALS -- 2.7%
Knight/Trimark Group, Cl A* 30,000 2,010
Multex.com* 20,600 1,288
Telebanc Financial Group* 20,000 1,595
------------
4,893
------------
TOTAL COMMON STOCKS
(Cost $115,954) 173,750
------------
WARRANT -- 0.1%
Optisystems* 100,000 175
------------
TOTAL WARRANT
(Cost $71) 175
------------
TECHNOLOGY FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
RELATED PARTY MONEY MARKET FUND -- 1.0%
First American Prime Obligations
Fund (A) 1,684,639 $ 1,685
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $1,685) 1,685
------------
TOTAL INVESTMENTS -- 97.6%
(Cost $117,710) 175,610
------------
OTHER ASSETS AND LIABILITIES, NET -- 2.4% (B) 4,369
------------
NET ASSETS:
Portfolio Capital--Class-A
($.0001 par value--2 billion authorized)
based on 415,548 outstanding shares 5,067
Portfolio Capital--Class-B
($.0001 par value--2 billion authorized)
based on 556,863 outstanding shares 9,252
Portfolio Capital--Class-Y
($.0001 par value--2 billion authorized)
based on 6,098,648 outstanding shares 81,031
Accumulated net investment loss (297)
Accumulated net realized gain on investments 27,026
Net unrealized appreciation of investments 57,900
------------
TOTAL NET ASSETS -- 100.0% $ 179,979
------------
Net asset value and redemption
price per share--Class-A $ 25.31
Maximum sales charge of 5.25% (C) 1.40
------------
Offering price per share--Class-A $ 26.71
------------
Net asset value and offering
price per share--Class-B (D) $ 24.19
------------
Net asset value, offering price, and
redemption price per share--Class-Y $ 25.58
------------
* Non-income producing security
(A)This money market fund is advised by U.S. Bank National Association who also
serves as advisor for this fund. See the notes to the financial statements.
(B)Other assets and liabilities representing greater than five percent of total
net assets include the following (000):
Receivable for investment security sold $ 11,826
Cash collateral received for securities on loan $ 48,567
Payable upon return of securities on loan $(48,567)
(C)The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 5.25%.
(D)Class-B has a contingent deferred sales charge. For a description of a
possible redemption charge, see the notes to the financial statements.
ADR--American Depositary Receipt
Cl--Class
The accompanying notes are an integral part of the financial statements.
63 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
STATEMENTS OF
OPERATIONS FOR THE SIX MONTHS ENDED MARCH 31, 1999, (UNAUDITED)
IN THOUSANDS
<TABLE>
<CAPTION>
HEALTH SCIENCES REAL ESTATE TECHNOLOGY
FUND SECURITIES FUND FUND
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 30+ $ 120+ $ 170+
Dividends 109 2,094 237
- ---------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 139 2,214 407
===============================================================================================================
EXPENSES:
Investment advisory fees 75 222 500
Less: Waiver of investment advisory fees (22) (44) (23)
Administrator fees 11 34 78
Transfer agent fees 21 23 46
Amortization of organizational costs -- 1 1
Custodian fees 3 9 21
Directors' fees -- 1 1
Registration fees 2 5 9
Professional fees -- 1 2
Printing 1 2 4
Distribution fees - class-A 2 2 12
Distribution fees - class-B 4 15 50
Other 4 1 2
- ---------------------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 101 272 703
===============================================================================================================
Investment income (loss) - net 38 1,942 (296)
- ---------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS (LOSSES)
ON INVESTMENTS - NET:
Net realized gain (loss) on investments 732 (2,405) 29,023
Net change in unrealized appreciation (depreciation) of
investments 1,251 (3,406) 45,331
- ---------------------------------------------------------------------------------------------------------------
NET GAIN (LOSS) ON INVESTMENTS 1,983 (5,811) 74,354
===============================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $ 2,021 $ (3,869) $ 74,058
===============================================================================================================
</TABLE>
+ Includes income from securities lending program. See the Notes to the
Financial Statements for additional information.
The accompanying notes are an integral part of the financial statements.
64 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
SECTOR FUNDS
STATEMENTS OF
CHANGES IN NET ASSETS IN THOUSANDS
<TABLE>
<CAPTION>
HEALTH REAL ESTATE TECHNOLOGY
SCIENCES FUND SECURITIES FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
10/1/98 10/1/97 10/1/98 10/1/97 10/1/98 10/1/97
to to to to to to
3/31/99 9/30/98 3/31/99 9/30/98 3/31/99 9/30/98
- ---------------------------------------------------------------------------------------------------------------------------------
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Investment income (loss) - net $ 38 $ 91 $ 1,942 $ 3,197 $ (296) $ (663)
Net realized gain (loss) on investments 732 (247) (2,405) (155) 29,023 6,144
Net change in unrealized appreciation (depreciation)
of investments 1,251 (8,895) (3,406) (11,911) 45,331 (30,511)
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations 2,021 (9,051) (3,869) (8,869) 74,058 (25,030)
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class-A (40) (1) (57) (113)(3) -- --
Class-B (1) -- (79) (150)(3) -- --
Class-Y -- (82) (1,880) (3,266)(3) -- --
Net realized gain on investments:
Class-A (103) (287) -- (52) (394) (492)
Class-B (6) (74) -- (78) (372) (562)
Class-Y (3) (5,049) -- (1,126) (4,508) (8,701)
Tax return of capital:
Class-A -- -- -- (1) -- --
Class-B -- -- -- (1) -- --
Class-Y -- -- -- (17) -- --
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS (153) (5,493) (2,016) (4,804) (5,274) (9,755)
=================================================================================================================================
CAPITAL SHARE TRANSACTIONS(1):
Class-A:
Proceeds from sales 202 2,193 119 990 44,837 129,853
Reinvestment of distributions 5 99 49 137 365 341
Payments for redemptions (1,389) (146) (266) (753) (47,276) (126,833)
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from class-A
transactions (1,182) 2,146 (98) 374 (2,074) 3,361
- ---------------------------------------------------------------------------------------------------------------------------------
Class-B:
Proceeds from sales 100 405 605 820 1,848 1,974
Reinvestment of distributions 4 74 60 205 368 551
Payments for redemptions (85) (65) (906) (615) (1,038) (1,426)
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from class-B
transactions 19 414 (241) 410 1,178 1,099
- ---------------------------------------------------------------------------------------------------------------------------------
Class-Y
Proceeds from sales 250 6,410 16,231 46,805 10,571 48,376
Reinvestment of distributions 8 592 256 954 968 1,656
Payments for redemptions (8,247) (12,987) (11,482) (17,466) (15,635) (66,206)
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from class-Y
transactions (7,989) (5,985) 5,005 30,293 (4,096) (16,174)
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share
transactions (9,152) (3,425) 4,666 31,077 (4,992) (11,714)
- ---------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (7,284) (17,969) (1,219) 17,404 63,792 (46,499)
NET ASSETS AT BEGINNING OF PERIOD 24,639 42,608 63,328 45,924 116,187 162,686
=================================================================================================================================
NET ASSETS AT END OF PERIOD (2) $ 17,355 $ 24,639 $ 62,109 $ 63,328 $ 179,979 $ 116,187
=================================================================================================================================
</TABLE>
(1)See note 4 in the notes to the financial statements for additional
information.
(2)Includes undistributed (distributions in excess of) net investment income
(000) of $7 and $1 for Health Sciences Fund, $(306) and $0 for Real Estate
Securities Fund and accumulated net investment loss of $(297) and $(4) for
Technology Fund at March 31, 1999, and September 30, 1998, respectively.
(3)Includes a distribution in excess of net investment income.
The accompanying notes are an integral part of the financial statements.
65 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING, THROUGHOUT THE PERIODS
ENDED SEPTEMBER 30, UNLESS OTHERWISE INDICATED
<TABLE>
<CAPTION>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS DISTRIBUTIONS
VALUE NET GAINS OR FROM NET DISTRIBUTIONS FROM
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM RETURN OF
OF PERIOD INCOME (LOSS) INVESTMENTS INCOME CAPITAL GAINS CAPITAL
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
HEALTH SCIENCES FUND
Class-A
1999*(unaudited) $ 7.82 $ 0.01 $ 0.66 $(0.01) $(0.04) $ --
1998 12.05 0.01 (2.78) -- (1.46) --
1997 9.86 (0.01) 2.30 -- (0.10) --
1996(1) 10.00 0.01 (0.14) (0.01) -- --
Class-B
1999*(unaudited) $ 7.65 $ -- $ 0.63 $ -- $(0.04) $ --
1998 11.90 (0.02) (2.77) -- (1.46) --
1997 9.81 (0.01) 2.20 -- (0.10) --
1996(1) 10.00 (0.02) (0.16) (0.01) -- --
Class-Y
1999*(unaudited) $ 7.84 $ 0.02 $ 0.67 $(0.02) $(0.04) $ --
1998 12.08 0.03 (2.78) (0.03) (1.46) --
1997 9.87 (0.01) 2.33 (0.01) (0.10) --
1996(1) 10.00 0.03 (0.15) (0.01) -- --
- ------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE SECURITIES FUND
Class-A
1999*(unaudited) $12.17 $ 0.34 $(1.07) $(0.35) $ -- $ --
1998 14.97 0.63 (2.40) (0.70)(B) (0.33) --
1997 11.52 0.72 3.42 (0.65) (0.03) (0.01)
1996 10.38 0.52 1.30 (0.51) -- (0.17)
1995(2) 10.37 -- 0.01 -- -- --
Class-B
1999*(unaudited) $12.08 $ 0.30 $(1.07) $(0.31) $ -- $ --
1998 14.86 0.52 (2.37) (0.60)(B) (0.33) --
1997 11.46 0.63 3.38 (0.57) (0.03) (0.01)
1996 10.37 0.44 1.27 (0.45) -- (0.17)
1995(2) 10.37 -- -- -- -- --
Class-Y
1999*(unaudited) $12.19 $ 0.36 $(1.07) $(0.37) $ -- $ --
1998 14.99 0.67 (2.40) (0.74)(B) (0.33) --
1997 11.53 0.74 3.43 (0.67) (0.03) (0.01)
1996 10.37 0.57 1.29 (0.53) -- (0.17)
1995(3) 10.00 0.13 0.39 (0.11) -- (0.04)
- ------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY FUND
Class-A
1999*(unaudited) $15.60 $(0.06) $10.52 $ -- $(0.75) $ --
1998 20.20 (0.13) (3.26) -- (1.21) --
1997 19.25 (0.11) 3.12 -- (2.06) --
1996 18.24 (0.05) 2.95 -- (1.89) --
1995 11.19 (0.03) 7.31 -- (0.23) --
1994(4) 10.00 (0.01) 1.20 -- -- --
Class-B
1999*(unaudited) $14.99 $(0.12) $10.07 $ -- $(0.75) $ --
1998 19.58 (0.24) (3.14) -- (1.21) --
1997 18.85 (0.20) 2.99 -- (2.06) --
1996 18.02 (0.14) 2.86 -- (1.89) --
1995 11.17 (0.04) 7.12 -- (0.23) --
1994(5) 9.85 (0.02) 1.34 -- -- --
Class-Y
1999*(unaudited) $15.73 $(0.03) $10.63 $ -- $(0.75) $ --
1998 20.29 (0.08) (3.27) -- (1.21) --
1997 19.29 (0.06) 3.12 -- (2.06) --
1996 18.24 (0.04) 2.98 -- (1.89) --
1995 11.19 (0.03) 7.31 -- (0.23) --
1994(4) 10.00 (0.01) 1.20 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Returns are for the period indicated and have not been annualized.
* For the six month period ended March 31. All ratios for the period have been
annualized.
(A)Excluding sales charges.
(B)Includes distributions in excess of net investment income.
(1)Commenced operations on January 31, 1996. All ratios for the period have
been annualized.
(2)Class-A and class-B shares have been offered since September 29, 1995. All
ratios for the period have been annualized.
(3)Commenced operations on June 30, 1995. All ratios for the period have been
annualized.
(4)Commenced operations April 4, 1994. All ratios for the period have been
annualized.
(5)Class-B shares have been offered since August 15, 1994. All ratios for the
period have been annualized.
66 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
SECTOR FUNDS
<TABLE>
<CAPTION>
RATIO OF
RATIO OF NET EXPENSES TO
NET ASSET RATIO OF INVESTMENT AVERAGE
VALUE NET ASSETS EXPENSES TO INCOME (LOSS) NET ASSETS PORTFOLIO
END OF TOTAL END OF AVERAGE TO AVERAGE (EXCLUDING TURNOVER
PERIOD RETURN (A) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) RATE
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 8.44 8.54%+ $ 964 1.15% 0.15% 1.35% 27%
7.82 (25.24) 2,017 1.15 0.04 1.20 45
12.05 23.60 849 1.15 (0.20) 1.29 54
9.86 (1.32)+ 629 1.15 0.18 2.12 19
$ 8.24 8.26%+ $ 712 1.90% (0.60)% 2.10% 27%
7.65 (25.80) 645 1.90 (0.73) 1.95 45
11.90 22.69 516 1.90 (0.94) 2.04 54
9.81 (1.86)+ 281 1.90 (0.61) 2.87 19
$ 8.47 8.79%+ $ 15,679 0.90% 0.40% 1.10% 27%
7.84 (25.10) 21,977 0.90 0.27 0.95 45
12.08 23.89 41,243 0.90 0.06 1.04 54
9.87 (1.20)+ 12,485 0.90 0.43 1.87 19
- ----------------------------------------------------------------------------------------------------------------
$11.09 (5.96)%+ $ 1,753 1.05% 5.88% 1.19% 9%
12.17 (12.42) 2,027 1.05 4.71 1.18 36
14.97 36.77 2,105 1.05 4.46 1.30 14
11.52 18.17 226 1.05 4.36 1.76 8
10.38 0.00+ 1 1.05 0.00 2.59 0
$11.00 (6.38)%+ $ 2,533 1.80% 5.07% 1.94% 9%
12.08 (13.04) 3,026 1.80 3.98 1.93 36
14.86 35.77 3,318 1.80 3.61 2.00 14
11.46 17.00 263 1.80 4.29 2.51 8
10.37 0.00+ 1 1.80 0.00 3.34 0
$11.11 (5.83)%+ $ 57,823 0.80% 6.20% 0.94% 9%
12.19 (12.18) 58,275 0.80 5.06 0.93 36
14.99 37.07 40,501 0.80 4.57 1.05 14
11.53 18.53 17,895 0.80 5.13 1.51 8
10.37 5.19+ 5,756 0.80 6.01 2.34 0
- ----------------------------------------------------------------------------------------------------------------
$25.31 69.16%+ $ 10,517 1.15% (0.59)% 1.18% 76%
15.60 (16.69) 7,703 1.15 (0.60) 1.15 124
20.20 17.71 5,564 1.15 (0.59) 1.17 150
19.25 18.60 4,799 1.15 (0.85) 1.26 119
18.24 66.22 1,464 1.13 (0.61) 1.55 74
11.19 11.90+ 61 0.80 (0.21) 3.37 43
$24.19 68.56%+ $ 13,470 1.90% (1.32)% 1.93% 76%
14.99 (17.21) 7,499 1.90 (1.38) 1.90 124
19.58 16.82 8,463 1.90 (1.41) 1.92 150
18.85 17.75 4,881 1.90 (1.60) 2.01 119
18.02 64.52 2,031 1.88 (1.41) 2.30 74
11.17 13.40+ 2 1.80 (1.44) 4.12 43
$25.58 69.49%+ $155,992 0.90% (0.33)% 0.93% 76%
15.73 (16.41) 100,985 0.90 (0.38) 0.90 124
20.29 17.95 148,659 0.90 (0.41) 0.92 150
19.29 18.85 64,602 0.90 (0.60) 1.01 119
18.24 66.22 29,272 0.88 (0.35) 1.30 74
11.19 11.90+ 6,491 0.80 (0.21) 3.12 43
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
67 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
NOTES TO
FINANCIAL STATEMENTS MARCH 31, 1999 (UNAUDITED)
1 ORGANIZATION
The First American Balanced Fund, Equity Income Fund, Equity Index Fund, Large
Cap Value Fund (formerly Stock Fund), Large Cap Growth Fund, Mid Cap Growth
Fund, Mid Cap Value Fund, Regional Equity Fund, Small Cap Value Fund, Small Cap
Growth Fund, Micro Cap Value Fund, Emerging Markets Fund, International Fund,
International Index Fund, Health Sciences Fund, Real Estate Securities Fund, and
Technology Fund (each "Fund" collectively, the "Funds") are mutual funds offered
by First American Investment Funds, Inc. (FAIF). Other funds that are offered by
FAIF but are not included in this report are First American Adjustable Rate
Mortgage Securities Fund, Limited Term Income Fund, Intermediate Term Income
Fund, Intermediate Government Bond Fund, Fixed Income Fund, Strategic Income
Fund, California Intermediate Tax Free Fund, Colorado Intermediate Tax Free
Fund, Intermediate Tax Free Fund, Minnesota Intermediate Tax Free Fund,
Minnesota Tax Free Fund, Tax Free Fund, and Oregon Intermediate Tax Free Fund.
FAIF is registered under the Investment Company Act of 1940, as amended, as an
open-end management investment company. FAIF's articles of incorporation permit
the Board of Directors to create additional funds in the future.
FAIF offers class-A, class-B, class-C and class-Y shares. Class-A shares are
sold with a front-end sales charge. Class-B shares may be subject to a
contingent deferred sales charge for six years and automatically convert to
class-A shares after eight years. Class-C shares are sold with a front end sales
charge and may be subject to a contingent deferred sales charge for 18 months.
Class-Y shares have no sales charge and are offered only to qualifying
institutional investors.
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.
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 independent pricing services that have been approved by the Board of
Directors. Investments in equity securities that 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. Other equity securities traded in the over-the-counter
market and listed equity securities for which no sale was reported on that date
are stated at the last quoted bid price. Debt obligations exceeding sixty days
to maturity are valued by an independent pricing service. The pricing service
may employ methodologies that utilize actual market transactions, broker-dealer
supplied valuations, or other electronic data processing techniques. These
techniques generally consider such factors as yields or prices of bonds of
comparable quality, type of issue, coupon, maturity, ratings and general market
conditions. Securities for which prices are not available from an independent
pricing service but where an active market exists are valued using market
quotations obtained from one or more dealers that make markets in the securities
or from a widely-used quotation system. When market quotations are not readily
available, securities are valued at fair value as determined in good faith by
procedures established and approved by the Board of Directors. Debt obligations
with sixty days or less remaining until maturity may be valued at their
amortized cost. Foreign
68 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
securities are valued at the closing prices on the principal exchange on which
they trade. The prices for foreign securities are reported in local currency and
converted to U.S. dollars using currency exchange rates. Exchange rates are
provided daily by recognized independent pricing agents.
SECURITY TRANSACTIONS AND INVESTMENT INCOME - The Funds record security
transactions on the trade date of the security purchase or sale. Dividend income
is recorded on the ex-dividend date. 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 - Balanced Fund, Equity Income Fund, Equity Index
Fund, Large Cap Value Fund, Large Cap Growth Fund, Mid Cap Growth Fund and Mid
Cap Value Fund declare and pay income dividends monthly. Real Estate Securities
Fund, Regional Equity Fund, Small Cap Value Fund, Small Cap Growth Fund, Micro
Cap Value Fund, International Index Fund, Health Sciences Fund and Technology
Fund declare and pay income dividends quarterly.
A portion of the quarterly distributions of the Real Estate Securities Fund may
be a return of capital. Emerging Markets Fund and International Fund declare and
pay dividends annually. Any net realized capital gains on sales of a fund's
securities are distributed to shareholders at least annually.
FEDERAL TAXES - It is each Fund's intention to continue to qualify as a
regulated investment company and to distribute all of its taxable income.
Accordingly, no provision for federal income taxes is required. For federal
income tax purposes, required distributions related to realized gains from
security transactions are computed as of October 31st.
The amounts of distributions from net investment income and net realized capital
gains are determined in accordance with federal income tax regulations, which
may differ from those amounts determined under generally accepted accounting
principles. These book/tax differences are either temporary or permanent in
nature. The differences are primarily due to wash sales, foreign currency gains
and losses, and for international funds the "mark-to-market" of certain forward
foreign currency contracts and Passive Foreign Investment Companies (PFICs) for
tax purposes. The character of distributions made during the year from net
investment income or net realized gains, and the timing of distributions where
the fiscal year in which the amounts are distributed may differ from the year
that the income or realized gains (losses) were recorded by the fund. To the
extent these differences are permanent, adjustments are made to the appropriate
equity accounts in the period that the difference arises.
As of March 31, 1999, the Emerging Markets Fund, International Fund and
International Index Fund reclassified ($44,000), $4,621,000, and ($2,000) from
accumulated net realized foreign exchange gain/(loss), respectively, to
undistributed net investment income. The reclassifications are estimates based
on realized foreign exchange losses for the period October 1, 1998, through
March 31, 1999. Reclassifications for federal income tax purposes will be
finalized as of September 30, 1999. The reclassifications had no effect on net
assets or net asset values per share.
69 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
NOTES TO
FINANCIAL STATEMENTS MARCH 31, 1999 (UNAUDITED)
FUTURES TRANSACTIONS - In order to gain exposure to or protect against changes
in the market, certain Funds may enter into S&P Stock Index futures contracts
and other stock futures contracts.
Upon entering into a futures contract, the Fund is required to deposit cash or
pledge U.S. government securities in an amount equal to five percent of the
purchase price indicated in the futures contract (initial margin). Subsequent
payments, which are dependent on the daily fluctuations in the value of the
underlying security or securities, are made or received by the Fund each day
(daily variation margin) and are recorded as unrealized gains or losses until
the contract is closed. When the contract is closed, the fund records a realized
gain or loss equal to the difference between the proceeds from (or cost of) the
closing transaction and the fund's basis in the contract.
FOREIGN CURRENCY TRANSLATION - The books and records of the Emerging Markets
Fund, International Index Fund and International Fund are maintained in U.S.
dollars on the following bases:
o market value of investment securities, assets and liabilities at the
current rate of exchange; and
o purchases and sales of investment securities, income and expenses at the
relevant rates of exchange prevailing on the respective dates of such
transactions.
The Emerging Markets Fund, International Index Fund and International Fund do
not isolate the portion of gains and losses on investments in equity securities
that is due to changes in the foreign exchange rates from that which is due to
changes in market prices of equity securities.
The Emerging Markets Fund, International Index Fund and International Fund
report certain foreign currency-related transactions as components of realized
gains for financial reporting purposes, whereas such components are treated as
ordinary income for federal income tax purposes.
FORWARD FOREIGN CURRENCY CONTRACTS - The Emerging Markets Fund, International
Fund and International Index Fund may enter into forward foreign currency
contracts as hedges against either specific transactions or fund positions. The
aggregate principal amount of the contracts are not recorded because the
Emerging Markets Fund, International Fund and International Index Fund intend to
settle the contracts prior to delivery. All commitments are "marked-to-market"
daily at the applicable foreign exchange rate, and any resulting unrealized
gains or losses are recorded currently. The Emerging Markets Fund, International
Index Fund and International Fund realize gains or losses at the time the
forward contracts are extinguished. Unrealized gains or losses on outstanding
positions in forward foreign currency contracts held at the close of the period
are recognized as ordinary income or loss for federal income tax purposes.
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.
OPTIONS TRANSACTIONS - In order to hedge against market risks certain Funds may
write covered call options and purchase put options on stock indices and on
securities in which the funds invest. Options are valued daily based upon the
last sales price on the
70 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
principal exchange on which the option is traded, and the fund records the
unrealized gain or loss. A fund will realize a gain or loss upon the expiration
or closing of the options contract.
SECURITIES LENDING - Each Fund may lend up to one-third of the value of its
total assets to broker-dealers, banks or other institutional borrowers of
securities in order to earn additional income. Each Fund's policy is to maintain
collateral in the form of cash, United States Government securities or other
high grade debt obligations equal to at least 100% of the value of securities
loaned. The collateral is then "marked-to-market" daily until the securities are
returned.
USE OF ESTIMATES IN 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.
3 FEES AND EXPENSES
ADVISOR FEES - Pursuant to an investment advisory agreement (the Agreement),
U.S. Bank National Association (the Advisor) manages each Fund's assets and
furnishes related office facilities, equipment, research and personnel. The
Agreement requires each Fund to pay the Advisor a monthly fee based upon average
daily net assets. The fee for each Fund, other than the International Fund and
Emerging Markets Fund, is equal to an annual rate of .70% of the average daily
net assets. The fee for the International Fund and Emerging Markets Fund is
equal to an annual rate of 1.25% of average daily net assets.
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.
SUB-ADVISOR FEES - Marvin & Palmer Associates, Inc., serves as Sub-Advisor to
the International Fund and Emerging Markets Fund pursuant to a Sub-Advisory
Agreement with the Advisor. For International Fund, Marvin & Palmer is paid a
monthly fee by the Advisor calculated on an annual basis equal to 0.75% of the
first $100 million of International Fund's average daily net assets, 0.50% of
International Fund's average daily net assets in excess of $100 million up to
$300 million, 0.45% of International Fund's average daily net assets in excess
of $300 million up to $500 million and 0.40% of International Fund's average
daily net assets in excess of $500 million. For Emerging Markets Fund, Marvin &
Palmer is paid a monthly fee by the Advisor calculated on an annual basis equal
to 0.85% of the first $100 million of Emerging Markets Fund's average daily net
assets, 0.60% of Emerging Markets Fund's average daily net assets in excess of
$100 million up to $300 million, 0.55% of Emerging Markets Fund's average daily
net assets in excess of $300 million up to $500 million, and 0.50% of Emerging
Markets Fund's average daily net assets in excess of $500 million.
ADMINISTRATION FEES - SEI Investments Management Corporation (SIMC) provides
administrative services, including certain accounting, legal and shareholder
services, for a monthly administrator fee calculated at an annual rate equal to
.12% of each Fund's
71 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
NOTES TO
FINANCIAL STATEMENTS MARCH 31, 1999 (UNAUDITED)
average daily net assets with a minimum annual fee of $50,000 per fund. To the
extent that the aggregate net assets of the First American Family of Funds
exceed $8 billion, each fund's fee is reduced to .105% for their relative shares
of the excess net assets. The Mid Cap Growth and Emerging Markets Fund are
eligible for the $50,000 minimum.
SUB-ADMINISTRATION FEES - U.S. Bank National Association assists the
Administrator and provides sub-administration services for the Funds. For these
services, the Administrator compensates the sub-administrator monthly at an
annual rate of up to 0.05% of each Fund's average daily net assets. Under the
agreement SIMC paid U.S. Bank National Association $896,000 in aggregate for the
six months ended March 31, 1999, for the Funds included in this semiannual
report. The fees for each Fund for the period were approximately .025% of
average daily net assets.
CUSTODIAN FEES - Through a separate contractual agreement, U.S. Bank National
Association serves as the Funds' custodian. The fee for each fund, other than
Emerging Markets, International Fund and International Index Fund, is equal to
an annual rate of .03% of average daily net assets. The fee for Emerging
Markets, International Fund, and International Index Fund is equal to an annual
rate of .10% of average daily net assets. All fees are computed daily and paid
monthly.
DISTRIBUTION FEES - SEI Investments Distribution Co. (SIDCO) serves as
distributor of the Funds. Under the respective distribution plan, each of the
Funds pay SIDCO a monthly distribution fee equal to an annual rate of .25% of
each Fund's average daily net assets of the class-A shares and 1.00% of the
class-B shares and 1.00% class-C shares, which may be used by SIDCO to provide
compensation for sales support and distribution activities. No distribution fees
are paid by class-Y shares. Under the agreement, SIDCO paid affiliates of U.S.
Bank National Association and its affiliates the following amounts for the six
months ended March 31, 1999:
--------------------------------------------
U.S. Bank National Association $642,454
U.S. Bancorp Piper Jaffray 494,092
Var & Co. 27,062
--------------------------------------------
TRANSFER AGENT FEES - DST Systems, Inc. provides transfer agency services for
the Funds. Effective October 1, 1998, FAIF has 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.
72 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
For the six months ended March 31, 1999, fees paid to U.S. Bank under this
agreement were as follows (000):
-----------------------------------------
Balanced Fund $ 15
Equity Income Fund --
Equity Index Fund 5
Large Cap Growth Fund 72
Large Cap Value Fund 64
Mid Cap Growth Fund 130
Mid Cap Value Fund --
Micro Cap Value Fund --
Regional Equity Fund --
Small Cap Growth Fund 29
Small Cap Value Fund 2
Emerging Markets Fund 15
International Fund 42
International Index Fund --
Health Sciences Fund --
Real Estate Securities Fund --
Technology Fund --
-----------------------------------------
OTHER FEES - In addition to the investment advisory and management fees,
custodian fees, distribution fees, administrator and transfer agent fees, each
Fund is responsible for paying most other operating expenses including
organization costs, fees and expenses of outside directors, registration fees,
printing shareholder reports, legal, auditing, insurance and other miscellaneous
expenses.
For the six months ended March 31, 1999, legal fees and expenses were paid to a
law firm of which the Secretary of the Funds is a partner.
SALES CHARGES - A Contingent Deferred Sales Charge (CDSC) is imposed on
redemptions made in the class-B shares. The CDSC varies depending on the number
of years from time of payment for the purchase of class-B shares until the
redemption of such shares.
CONTINGENT DEFERRED SALES CHARGE
AS A PERCENTAGE OF DOLLAR
YEAR SINCE PURCHASE AMOUNT SUBJECT TO CHARGE
----------------------------------------------------
First 5.00%
Second 5.00%
Third 4.00%
Fourth 3.00%
Fifth 2.00%
Sixth 1.00%
Seventh 0.00%
Eighth 0.00%
----------------------------------------------------
A CDSC of 1.00% is imposed on redemptions made in class-C shares for the first
eighteen months.
The CDSC for class-B shares and class-C shares is imposed on the value of the
purchased shares, or the value at the time of redemption, whichever is less.
For the six months ended March 31, 1999, sales charges retained by SIDCO for
distributing the First American Family of Funds' shares were approximately
$58,000.
73 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
NOTES TO
FINANCIAL STATEMENTS MARCH 31, 1999 (UNAUDITED)
4 CAPITAL SHARE TRANSACTIONS
Capital share transactions for the funds were as follows (000):
<TABLE>
<CAPTION>
BALANCED EQUITY EQUITY
FUND INCOME FUND INDEX FUND
- -----------------------------------------------------------------------------------------------------------------------------
10/1/98 10/1/97 10/1/98 10/1/97 10/1/98 10/1/97
to to to to to to
3/31/99 9/30/98 3/31/99 9/30/98 3/31/99 9/30/98
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Class-A:
Shares issued 665 1,223 298 1,181 1,637 4,002
Shares issued in connection with acquisition of
Qualivest Fund (Asset Allocation for Balanced) -- 166 -- -- -- 296
Shares issued in connection with acquisition of
Piper Fund -- 3,018 -- -- -- --
Shares issued in lieu of cash distributions 704 267 39 36 58 81
Shares redeemed (1,326) (1,172) (127) (979) (418) (2,916)
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS-A TRANSACTIONS 43 3,502 210 238 1,277 1,463
=============================================================================================================================
Class-B:
Shares issued 269 1,233 119 169 1,011 1,068
Shares issued in connection with acquisition of
Qualivest Fund -- 360 -- 32 -- --
Shares issued in lieu of cash distributions 536 313 35 -- 46 104
Shares redeemed (428) (492) (57) (77) (153) (167)
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS-B TRANSACTIONS 377 1,414 97 124 904 1,005
=============================================================================================================================
Class-C:
Shares issued 14 -- 15 -- 163 --
Shares issued in lieu of cash distributions -- -- -- -- -- --
Shares redeemed -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS-C TRANSACTIONS 14 -- 15 -- 163 --
=============================================================================================================================
Class-Y:
Shares issued 3,948 8,578 2,244 2,946 11,052 13,918
Shares issued in connection with acquisition of
Qualivest Fund (Asset Allocation for Balanced Fund) -- 6,642 -- -- -- 17,735
Shares issued in lieu of cash distributions 4,090 3,127 178 228 1,126 2,375
Shares redeemed (10,036) (12,936) (2,576) (3,892) (8,504) (12,513)
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS-Y TRANSACTIONS (1,998) 5,411 (154) (718) 3,674 21,515
=============================================================================================================================
NET INCREASE (DECREASE) IN CAPITAL SHARES (1,564) 10,327 168 (356) 6,018 23,983
=============================================================================================================================
<CAPTION>
LARGE CAP LARGE CAP MID CAP
GROWTH FUND VALUE FUND GROWTH FUND
- -----------------------------------------------------------------------------------------------------------------------------
10/1/98 10/1/97 10/1/98 10/1/97 10/1/98 10/1/97
to to to to to to
3/31/99 9/30/98 3/31/99 9/30/98 3/31/99 9/30/98
- -----------------------------------------------------------------------------------------------------------------------------
Class-A:
Shares issued 1,655 2,551 801 1,492 511 1,675
Shares issued in connection with acquisition of
Qualivest Fund -- -- -- 376 -- --
Shares issued in connection with acquisition of
Piper Fund -- 9,268 -- 4,904 -- --
Shares issued in lieu of cash distributions 945 52 1,115 312 3,066 2,165
Shares redeemed (3,058) (3,877) (1,530) (1,222) (3,959) (5,863)
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS-A TRANSACTIONS (458) 7,994 386 5,862 (382) (2,023)
=============================================================================================================================
Class-B:
Shares issued -- FAIF 149 199 107 637 17 1
Shares issued -- Piper -- -- -- -- -- 45
Shares issued in lieu of cash distributions -- FAIF 82 49 425 318 -- --
Shares issued in lieu of cash distributions -- Piper -- -- -- -- -- 10
Shares redeemed -- FAIF (55) (95) (284) (294) -- --
Shares redeemed -- Piper -- -- -- -- -- (122)
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS-B TRANSACTIONS 176 153 248 661 17 (66)
=============================================================================================================================
Class-C:
Shares issued 2 -- 5 -- 4 --
Shares issued in lieu of cash distributions -- -- -- -- -- --
Shares redeemed -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS-C TRANSACTIONS 2 -- 5 -- 4 --
=============================================================================================================================
Class-Y:
Shares issued 5,443 10,313 7,864 15,252 13,572 7,967
Shares issued in connection with acquisition of
Common Trust Fund Assets -- -- -- 10,794 -- --
Shares issued in connection with acquisition of
Qualivest Fund -- -- -- 6,653 -- --
Shares issued in connection with acquisition of
Piper Fund -- -- -- 595 -- --
Shares issued in lieu of cash distributions 1,339 740 5,354 4,041 1,200 501
Shares redeemed (5,376) (7,929) (8,776) (19,513) (5,519) (6,171)
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS-Y TRANSACTIONS 1,406 3,124 4,442 17,822 9,253 2,297
=============================================================================================================================
NET INCREASE IN CAPITAL SHARES 1,126 11,271 5,081 24,345 8,892 208
=============================================================================================================================
</TABLE>
74 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
<TABLE>
<CAPTION>
MID CAP MICRO CAP REGIONAL
VALUE FUND VALUE FUND EQUITY FUND
- ------------------------------------------------------------------------------------------------------------------------------
10/1/98 10/1/97 10/1/98 10/1/97 10/1/98 10/1/97
to to to to to to
3/31/99 9/30/98 3/31/99 9/30/98 3/31/99 9/30/98
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Class-A:
Shares issued 472 2,920 80 595 40 509
Shares issued in lieu of cash distributions 475 207 25 1 98 64
Shares redeemed (1,013) (2,636) (44) (460) (359) (661)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS-A TRANSACTIONS (66) 491 61 136 (221) (88)
==============================================================================================================================
Class-B:
Shares issued 50 621 3 21 20 258
Shares issued in lieu of cash distributions 493 233 7 1 123 83
Shares redeemed (699) (271) (6) (1) (399) (274)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS-B TRANSACTIONS (156) 583 4 21 (256) 67
==============================================================================================================================
Class-C:
Shares issued 2 -- -- -- -- --
Shares issued in lieu of cash distributions -- -- -- -- -- --
Shares redeemed -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS-C TRANSACTIONS 2 -- -- -- -- --
==============================================================================================================================
Class-Y:
Shares issued 9,220 12,176 1,058 1,372 930 4,280
Shares issued in lieu of cash distributions 4,076 2,368 591 661 681 481
Shares redeemed (13,903) (7,809) (7,540) (6,377) (4,389) (6,472)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS-Y TRANSACTIONS (607) 6,735 (5,891) (4,344) (2,778) (1,711)
==============================================================================================================================
NET INCREASE (DECREASE) IN CAPITAL SHARES (827) 7,809 (5,826) (4,187) (3,255) (1,732)
==============================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP SMALL CAP EMERGING
GROWTH FUND VALUE FUND MARKETS FUND
- -----------------------------------------------------------------------------------------------------------------------------------
10/1/98 10/1/97 10/1/98 12/1/97 8/1/97 10/1/98 10/1/97
to to to to to to to
3/31/99 9/30/98 3/31/99 9/30/98 11/30/97 3/31/99 9/30/98
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Class-A:
Shares issued 3,651 1,883 162 2,286 1,021 27 83
Shares issued in connection with acquisition of
Piper Fund -- 409 -- -- -- -- --
Shares issued in lieu of cash distributions 4 351 77 83 -- -- 4
Shares redeemed (3,909) (2,314) (292) (2,426) (1,225) (218) (678)
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS-A TRANSACTIONS (254) 329 (53) (57) (204) (191) (591)
===================================================================================================================================
Class-B:
Shares issued -- FAIF 38 5 31 49 -- -- --
Shares issued -- Piper -- 65 -- -- -- -- 3
Shares issued in connection with acquisition of
Piper Fund -- 95 -- -- -- -- --
Shares issued in lieu of cash distributions -- Piper -- 1 4 -- -- -- --
Shares redeemed -- FAIF (13) (4) (13) (3) -- -- --
Shares redeemed -- Piper -- (116) -- -- -- -- (32)
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS-B TRANSACTIONS 25 46 22 46 -- -- (29)
===================================================================================================================================
Class-C:
Shares issued 4 -- 3 -- -- -- --
Shares issued in lieu of cash distributions -- -- -- -- -- -- --
Shares redeemed -- -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS-C TRANSACTIONS 4 -- 3 -- -- -- --
===================================================================================================================================
Class-Y:
Shares issued 5,638 610 6,727 12,604 6,328 4,501 1,331
Shares issued in connection with acquisition of
Piper Fund -- 10,283 -- -- -- -- --
Shares issued in lieu of cash distributions 4 -- 2,013 2,024 4 -- --
Shares redeemed (1,547) (1,388) (9,975) (12,922) (6,230) (195) (5)
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS-Y TRANSACTIONS 4,095 9,505 (1,235) 1,706 102 4,306 1,326
===================================================================================================================================
NET INCREASE (DECREASE) IN CAPITAL SHARES 3,870 9,880 (1,263) 1,695 (102) 4,115 706
===================================================================================================================================
</TABLE>
75 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
NOTES TO
Financial Statements MARCH 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
INTERNATIONAL INTERNATIONAL HEALTH
FUND INDEX FUND SCIENCES FUND
- ----------------------------------------------------------------------------------------------------------------------------------
10/1/98 10/1/97 10/1/98 12/1/97 8/1/97 10/1/98 10/1/97
to to to to to to to
3/31/99 9/30/98 3/31/99 9/30/98 11/30/97 3/31/99 9/30/98
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Class-A:
Shares issued 3,599 16,428 189 88 4 23 193
Shares issued in connection with acquisition of Piper Fund -- 3,127 -- -- -- -- --
Shares issued in lieu of cash distributions 207 13 13 2 -- 1 10
Shares redeemed (3,911) (16,973) (203) (30) (18) (168) (15)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS-A TRANSACTIONS (105) 2,595 (1) 60 (14) (144) 188
==================================================================================================================================
Class-B:
Shares issued 34 85 28 13 -- 12 40
Shares issued in lieu of cash distributions 13 10 1 -- -- -- 8
Shares redeemed (29) (28) (1) (2) -- (10) (7)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS-B TRANSACTIONS 18 67 28 11 -- 2 41
==================================================================================================================================
Class-C:
Shares issued 16 -- -- -- -- -- --
Shares issued in lieu of cash distributions -- -- -- -- -- -- --
Shares redeemed -- -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS-C TRANSACTIONS 16 -- -- -- -- -- --
==================================================================================================================================
Class-Y:
Shares issued 7,073 18,643 455 2,283 3,022 29 600
Shares issued in connection with acquisition of Piper Fund -- 248 -- -- -- -- --
Shares issued in lieu of cash distributions 939 680 613 184 28 1 61
Shares redeemed (5,892) (7,532) (534) (6,842) (5,882) (982) (1,273)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS-Y TRANSACTIONS 2,120 12,039 534 (4,375) (2,832) (952) (612)
==================================================================================================================================
NET INCREASE (DECREASE) IN CAPITAL SHARES 2,049 14,701 561 (4,304) (2,846) (1,094) (383)
==================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
REAL ESTATE TECHNOLOGY
SECURITIES FUND FUND
- ------------------------------------------------------------------------------------------------
10/1/98 10/1/97 10/1/98 10/1/97
to to to to
3/31/99 9/30/98 3/31/99 9/30/98
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class-A:
Shares issued 10 71 2,521 7,345
Shares issued in lieu of cash distributions 4 10 20 22
Shares redeemed (23) (55) (2,619) (7,148)
- ------------------------------------------------------------------------------------------------
TOTAL CLASS-A TRANSACTIONS (9) 26 (78) 219
================================================================================================
Class-B:
Shares issued 53 59 89 114
Shares issued in lieu of cash distributions 5 15 22 37
Shares redeemed (79) (46) (54) (83)
- ------------------------------------------------------------------------------------------------
TOTAL CLASS-B TRANSACTIONS (21) 28 57 68
================================================================================================
Class-Y:
Shares issued 1,395 3,327 473 2,692
Shares issued in lieu of cash distributions 23 69 54 107
Shares redeemed (992) (1,318) (847) (3,708)
- ------------------------------------------------------------------------------------------------
TOTAL CLASS-Y TRANSACTIONS 426 2,078 (320) (909)
================================================================================================
NET INCREASE (DECREASE) IN CAPITAL SHARES 396 2,132 (341) (622)
================================================================================================
</TABLE>
76 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
5 INVESTMENT SECURITY TRANSACTIONS
During the six months ended March 31, 1999, purchases of securities and proceeds
from sales of securities, other than temporary investments in short-term
securities, were as follows (000):
U.S. GOVERNMENT OTHER INVESTMENT
SECURITIES SECURITIES
- --------------------------------------------------------------------------------
PURCHASES SALES PURCHASES SALES
--------------------------------------------------
Balanced Fund $75,100 $76,455 $139,036 $207,872
Equity Income Fund -- -- 63,538 90,816
Equity Index Fund -- -- 145,445 15,643
Large Cap Growth Fund -- -- 271,538 348,395
Large Cap Value Fund -- -- 516,081 663,003
Mid Cap Growth Fund -- -- 152,959 102,532
Mid Cap Value Fund -- -- 231,497 365,444
Micro Cap Value Fund -- -- 8,398 78,360
Regional Equity Fund -- -- 17,492 87,193
Small Cap Growth Fund -- -- 125,906 74,467
Small Cap Value Fund -- -- 75,862 129,739
Emerging Markets Fund -- -- 38,786 15,450
International Fund -- -- 336,029 339,819
International Index Fund -- -- 380 4,063
Health Sciences Fund -- -- 5,582 12,377
Real Estate Securities Fund -- -- 11,321 5,673
Technology Fund -- -- 107,341 122,726
- --------------------------------------------------------------------------------
At March 31, 1999, the total cost of securities for federal income tax purposes
was not materially different from amounts reported for financial reporting
purposes. The aggregate gross unrealized appreciation and depreciation for
securities held by the Funds at March 31, 1999, is as follows (000):
AGGREGATE GROSS AGGREGATE GROSS
APPRECIATION DEPRECIATION NET
- --------------------------------------------------------------------------------
Balanced Fund $ 58,209 $ (11,417) $ 46,792
Equity Income Fund 152,271 (7,942) 144,329
Equity Index Fund 650,577 (38,118) 612,459
Large Cap Growth Fund 418,021 (13,781) 404,240
Large Cap Value Fund 296,698 (50,806) 245,892
Mid Cap Growth Fund 112,516 (12,118) 100,398
Mid Cap Value Fund 29,036 (73,426) (44,390)
Micro Cap Value Fund 14,609 (17,881) (3,272)
Regional Equity Fund 53,410 (24,875) 28,535
Small Cap Growth Fund 40,801 (19,699) 21,102
Small Cap Value Fund 71,943 (53,716) 18,227
Emerging Markets Fund 2,486 (1,729) 757
International Fund 70,066 (5,368) 64,698
International Index Fund 39,809 (15,379) 24,430
Health Sciences Fund 3,186 (1,786) 1,400
Real Estate Securities Fund 2,101 (8,207) (6,106)
Technology Fund 60,302 (2,402) 57,900
- --------------------------------------------------------------------------------
77 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
NOTES TO
FINANCIAL STATEMENTS MARCH 31, 1999 (UNAUDITED)
6 FORWARD FOREIGN CURRENCY CONTRACTS
The International Fund enters into forward foreign currency exchange contracts
as hedges against portfolio positions and in connection with portfolio purchases
and sales of securities denominated in a foreign currency. Such contracts, which
protect the value of the fund's investment securities against a decline in the
value of the hedged currency, do not eliminate fluctuations in the underlying
prices of the securities. They simply establish an exchange rate at a future
date. Although such contracts tend to minimize the risk of loss due to a decline
in the value of a hedged currency, at the same time they tend to limit any
potential gain that might be realized should the value of such foreign currency
increase.
The following forward foreign currency contracts were outstanding at March 31,
1999, for the International Fund.
<TABLE>
<CAPTION>
SETTLEMENT CONTRACTS TO IN EXCHANGE NET UNREALIZED APPRECIATION/
DATES DELIVER (000) FOR (000) (DEPRECIATION) (000)
- --------------------------------------------------------------------------------------
FOREIGN CURRENCY SALES:
<S> <C> <C> <C>
4/1/99 GBP 682 $1,099 $ (1)
------ ----
FOREIGN CURRENCY
PURCHASES:
4/6/99 EUR 391 $ 420 $ 1
4/1/99 JPY 245,658 2,061 7
------ ----
$2,481 $ 8
------ ----
$ 7
====
</TABLE>
CURRENCY LEGEND
- ---------------
EUR Euro
GBP Great British Pound
JPY Japanese Yen
7 FUTURES CONTRACTS
The Equity Index Fund's investment in S&P 500 Index futures contracts is
designed to maintain sufficient liquidity to meet redemption requests and to
increase the level of fund assets devoted to replicating the composition of the
S&P 500 Index while reducing transaction costs. Risks of entering into futures
contracts, in general, include the possibility that there will not be a perfect
price correlation between the futures contracts and the underlying securities.
Second, it is possible that a lack of liquidity for futures contracts could
exist in the secondary market, resulting in an inability to close a futures
position prior to its maturity date. Third, the purchase of a futures contract
involves the risk that a fund could lose more than the original margin deposit
required to initiate a futures transaction. Unrealized gains or losses on
outstanding positions in futures contracts held
78 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
at the close of the year will be recognized as capital gains or losses for
Federal income tax purposes. At March 31, 1999, open long S&P 500 Index futures
contracts were as follows:
MARKET VALUE
NUMBER OF COVERED BY SETTLEMENT UNREALIZED
CONTRACTS CONTRACTS (000) MONTH GAIN/(LOSS) (000)
- --------------------------------------------------------------------------------
6 $ 1,940 June-99 $ 31
3 970 June-99 11
2 647 June-99 4
4 1,293 June-99 2
4 1,293 June-99 (37)
5 1,617 June-99 (29)
3 970 June-99 (29)
4 1,293 June-99 (28)
4 1,293 June-99 (23)
2 647 June-99 (17)
4 1,293 June-99 (16)
2 647 June-99 (9)
2 647 June-99 (8)
3 970 June-99 (8)
42 13,580 June-99 (7)
3 970 June-99 (7)
1 323 June-99 (4)
- --------------------------------------------------------------------------------
94 $30,393 $ (174)
- --------------------------------------------------------------------------------
8 OPTIONS TRANSACTIONS
The Mid Cap Value Fund wrote covered call options and purchased put options
during the period. These transactions, which were undertaken principally to
hedge against market risk, entail certain risks. The risks include the risk of
imperfect correlation between movements of the index covered by the option and
movement in the price of the fund's securities, and the risk of limited
liquidity in the event the fund seeks to close out an option position before
expiration by entering into an offsetting transaction. These transactions give
the holder the right to receive, upon exercise of the option, a defined amount
of cash if the closing value of the index upon which the option is based is
greater than, in the case of a call, or less than, in the case of a put, the
exercise price of the option. Written options activity for Mid Cap Value Fund
for the six months ended March 31, 1999, is as follows:
CALL OPTIONS (000)
--------------------------------------------
NUMBER OF AMOUNT OF
OPTIONS PREMIUMS
- --------------------------------------------------------------------------------
Options outstanding at
September 30, 1998 -- $ --
Options written 5,202 $ 21,366
Options expired or closed (5,202) (21,366)
--------------------------------------------
Options outstanding at
March 31, 1999 -- $ --
- --------------------------------------------------------------------------------
The Fund realized losses of approximately $6,875,000 on written options during
the period.
79 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
NOTES TO
FINANCIAL STATEMENTS MARCH 31, 1999 (UNAUDITED)
9 SECURITIES LENDING TRANSACTIONS
In order to generate additional income, certain Funds may lend portfolio
securities representing up to one-third of the value of total assets (which
includes collateral received for securities on loan) to broker dealers, banks,
or other institutional borrowers of securities. As with other extensions of
credit, there may be risks of delay in recovery of the securities or even loss
of rights in the collateral should the borrower of the security fail
financially. The market value of the securities on loan at March 31, 1999, the
collateral purchased with cash received and held at March 31, 1999, with respect
to such loans, and income generated during the six months ended March 31, 1999,
from the program were as follows (000):
MARKET VALUE OF INCOME RECEIVED
FUND LOANED SECURITIES FROM SECURITIES LENDING
- --------------------------------------------------------------------------------
Balanced $142,868 $ 99
Equity Income 84,120 77
Equity Index 371,751 204
Large Cap Growth 281,125 168
Large Cap Value 219,995 152
Mid Cap Growth 135,836 86
Mid Cap Value 92,643 53
Micro Cap Value 4,286 9
Regional Equity 23,886 70
Small Cap Growth 49,884 42
Small Cap Value 15,321 23
Health Sciences 5,360 7
Real Estate Securities 10,701 5
Technology 48,756 100
- --------------------------------------------------------------------------------
MARKET VALUE OF COLLATERAL PURCHASED WITH CASH RECEIVED
----------------------------------------------------------
OTHER FIXED
REPURCHASE MONEY MARKET INCOME
FUND AGREEMENTS INSTRUMENTS SECURITIES TOTAL
- --------------------------------------------------------------------------------
Balanced $ 98,511 $ 49 $ 43,754 $142,314
Equity Income 58,002 29 25,762 83,793
Equity Index 256,329 129 113,850 370,308
Large Cap Growth 193,841 97 86,096 280,034
Large Cap Value 151,691 76 67,375 219,142
Mid Cap Growth 93,662 47 41,600 135,309
Mid Cap Value 63,880 32 28,372 92,284
Micro Cap Value 2,955 1 1,313 4,269
Regional Equity 16,470 8 7,315 23,793
Small Cap Growth 34,396 18 15,277 49,691
Small Cap Value 10,564 5 4,692 15,261
Health Sciences 3,696 2 1,641 5,339
Real Estate Securities 7,378 4 3,277 10,659
Technology 33,618 17 14,932 48,567
- --------------------------------------------------------------------------------
U.S. Bank National Association acts as the securities lending agent in
transactions involving the lending of portfolio securities on behalf of the
funds. For these services, U.S. Bank National Association received $709,000 in
aggregate securities lending fees for the six months ended March 31, 1999 from
the Funds included in this semiannual report.
10 COMMON TRUST FUND CONVERSIONS
On December 6, 1997, the Large Companies Value Trust Fund of the Advisor was
converted into the Large Cap Value Fund. The assets, which consisted of
securities and related receivables, were converted on a tax-free basis.
10,793,662 of class-Y shares of the Large Cap Value Fund were issued at the time
of conversion. The net assets of the
80 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
Common Trust Fund and Large Cap Value Fund immediately before the conversion
were $265,739,968 and $1,574,696,070 respectively. Included in this amount was
$86,510,389 of unrealized gains.
11 QUALIVEST MERGER
On November 21, 1997, the following reorganization of the Qualivest Funds into
the FAIF Funds took place pursuant to a Plan of Reorganization approved by the
Qualivest shareholders on October 31, 1997:
QUALIVEST ACQUIRED FUND FAIF ACQUIRING FUND
- --------------------------------------------------------------------------------
Optimized Stock Fund Equity Index Fund
Large Companies Value Fund Large Cap Value Fund
International Opportunities Fund International Index Fund
(New FAIF Fund)
Small Companies Value Fund Small Cap Value Fund
(New FAIF Fund)
- --------------------------------------------------------------------------------
Under the Agreement and Plan of Reorganization, the Qualivest class-A and
class-C shares were exchanged on a tax-free basis for FAIF class-A shares.
Qualivest class-Q and class-Y shares were exchanged for shares of FAIF class-Y.
The financial information presented for Small Cap Value Fund and International
Index Fund prior to November 21, 1997, is that of the Qualivest Small Companies
Value Fund and International Opportunities Fund, respectively. The historical
financial information was carried over to the newly formed FAIF fund.
The net assets before the reorganization and shares issued and redeemed were as
follows:
FAIF QUALIVEST
ACQUIRING FUND'S ACQUIRED FUND'S
FAIF FUND NET ASSETS SHARES ISSUED SHARES REDEEMED
- --------------------------------------------------------------------------------
Equity Index $ 588,178,511 18,031,329 22,037,539
Large Cap Value 1,118,968,409 7,029,057 12,142,680
International Index -- 17,489,227 17,489,234
Small Cap Value -- 25,553,735 25,556,824
- --------------------------------------------------------------------------------
Included in the net assets from the Qualivest Funds were the following
components:
<TABLE>
<CAPTION>
UNDISTRIBUTED
(DISTRIBUTIONS IN ACCUMULATED
EXCESS OF) NET REALIZED NET UNREALIZED
QUALIVEST FUND PAID IN CAPITAL INVESTMENT INCOME GAIN (LOSS) APPRECIATION NET ASSETS
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Optimized Stock $244,963,207 $ (3,653) $ (46,158) $106,772,181 $351,685,577
Large Companies Value 127,578,224 (7,466) (56,214) 43,260,898 170,775,442
International Opportunities 183,254,306 866,770 3,224,763 7,354,218 194,700,057
Small Companies Value 289,976,520 (113,306) 36,052,451 144,053,739 469,969,404
- --------------------------------------------------------------------------------------------------------------
</TABLE>
12 FAIF ASSET ALLOCATION MERGER
On November 21, 1997, the assets of FAIF Asset Allocation Fund were reorganized
into the FAIF Balanced Fund. Under the Agreement and Plan of Reorganization, the
Asset Allocation class-A, class-B, and class-Y shares were exchanged for
class-A, class-B, and class-Y shares of Balanced Fund.
The acquisition was accompanied by a tax-free exchange in which 9,475,207 shares
of the Asset Allocation Fund were exchanged for 7,167,873 shares of the Balanced
Fund. The total net assets of the Balanced Fund prior to the conversion were
$514,997,252. Asset Allocation net assets on November 21, 1997, were combined
with those of the
81 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
NOTES TO
FINANCIAL STATEMENTS MARCH 31, 1999 (UNAUDITED)
Balanced Fund. Included in the net assets of $101,649,757 were $89,550,476 of
paid in capital, $110 of excess of distribution over net investment income,
$145,003 of accumulated net realized losses and $12,244,394 of net unrealized
appreciation.
13 PIPER MERGER
The Board of Directors and shareholders of the Piper Funds approved a
reorganization of certain Piper Funds into FAIF which took place at the close of
business on July 31, 1998 (August 7, 1998 for Emerging Growth Fund and Emerging
Markets Growth Fund):
PIPER ACQUIRED FUND FAIF ACQUIRING FUND
- --------------------------------------------------------------------------------
Balanced Balanced
Growth Large Cap Growth (formerly Diversified Growth Fund)
Growth and Income Large Cap Value (formerly Stock Fund)
Emerging Growth Mid Cap Growth (New FAIF shell)
Small Company Growth Small Cap Growth (formerly Emerging Growth)
Pacific-European Growth International
Emerging Markets Growth Emerging Markets (New FAIF shell)
- --------------------------------------------------------------------------------
Under the Agreement and Plan of Reorganization the Piper class-A shares were
exchanged on a tax free basis for FAIF class-A shares, and Piper class-Y shares
were exchanged for FAIF class-Y shares.
The financial information presented for Small Cap Growth Fund prior to July 31,
1998, and for Mid Cap Growth Fund and Emerging Markets Growth Fund prior to
August 7, 1998, is that of the Piper Small Company Growth Fund, Piper Emerging
Growth Fund, and Piper Emerging Markets Growth Fund, respectively. The
historical financial information of the Piper Funds were carried over to the
newly formed FAIF funds.
The net assets before the reorganization and shares issued and redeemed by the
corresponding FAIF funds were as follows:
FAIF PIPER
ACQUIRING FUND'S ACQUIRED FUND'S
FAIF FUND NET ASSETS SHARES ISSUED SHARES REDEEMED
- --------------------------------------------------------------------------------
Balanced $ 585,905,723 3,017,680 3,150,040
Large Cap Growth 786,895,792 9,268,056 16,443,730
Large Cap Value 1,533,335,392 5,499,970 7,909,764
Mid Cap Growth -- 21,069,733 21,069,733
International 445,542,928 3,374,185 3,752,849
Emerging Markets -- 1,014,036 1,014,036
- --------------------------------------------------------------------------------
Included in the net assets from the Piper Funds were the following
components:
<TABLE>
<CAPTION>
(DISTRIBUTIONS IN ACCUMULATED NET UNREALIZED
EXCESS OF) NET REALIZED APPRECIATION/
PIPER FUND PAID IN CAPITAL INVESTMENT INCOME GAIN (LOSS) DEPRECIATION NET ASSETS
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Balanced $ 33,376,466 $ -- $ -- $10,507,084 $ 43,883,550
Growth 98,020,791 -- -- 72,267,759 170,288,550
Growth & Income 83,543,993 -- (1,112) 53,525,337 137,068,218
Emerging Growth 146,516,915 (1,559,461) 55,342,876 92,043,362 292,343,692
Pacific-European Growth 42,458,135 (30) (1,605,538) 10,368,460 51,221,027
Emerging Markets Growth 15,062,390 (202,028) (7,144,878) (342,930) 7,372,554
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
82 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
On July 31, 1998, the First American Small Cap Growth Fund acquired the Piper
Small Company Growth Fund. The Piper Small Company Growth Fund is the financial
reporting survivor. Therefore, Small Cap Growth Fund net assets were combined
with those of the Piper Small Company Growth Fund. Prior to the conversion the
Piper Small Company Growth Fund net assets were $31,790,965. Included in the net
assets of $154,094,291 of Small Cap Growth Fund were $133,865,910 of paid in
capital, $65,299 of undistributed net investment income, $8,286,188 of
accumulated net realized gains, and $11,876,894 of net unrealized appreciation.
At the time of conversion the shares outstanding of the Piper Small Company
Growth Fund were adjusted to reflect the conversion ratios utilized for the
reorganization.
83 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
NOTICE TO
SHAREHOLDERS MARCH 31, 1999
ON SEPTEMBER 9, 1998, THE FUNDS' BOARD OF DIRECTORS, UPON THE RECOMMENDATION OF
THE AUDIT COMMITTEE, APPOINTED ERNST & YOUNG LLP THE INDEPENDENT ACCOUNTANTS FOR
THE FUNDS' FISCAL YEAR ENDING SEPTEMBER 30, 1999, AND DISMISSED KPMG PEAT
MARWICK LLP ("KPMG"). KPMG'S REPORTS ON THE FUNDS' FINANCIAL STATEMENTS FOR THE
PAST TWO YEARS HAVE NOT CONTAINED AN ADVERSE OPINION OR A DISCLAIMER OF OPINION
AND HAVE NOT BEEN QUALIFIED AS TO UNCERTAINTY, AUDIT SCOPE, OR ACCOUNTING
PRINCIPLES. IN ADDITION, THERE HAVE NOT BEEN ANY DISAGREEMENTS WITH KPMG DURING
THE FUNDS' TWO MOST RECENT FISCAL YEARS ON ANY MATTER OF ACCOUNTING PRINCIPLES
OR PRACTICES, FINANCIAL STATEMENT DISCLOSURE, OR AUDITING SCOPE OR PROCEDURE
WHICH, IF NOT RESOLVED TO THE SATISFACTION OF KPMG, WOULD HAVE CAUSED IT TO MAKE
A REFERENCE TO THE SUBJECT MATTER OF THE DISAGREEMENT IN CONNECTION WITH ITS
REPORTS.
84 '99 SEMIANNUAL REPORT FIRST AMERICAN FUNDS
<PAGE>
FIRST AMERICAN INVESTMENT FUNDS, INC.
BOARD OF DIRECTORS
MR. DAVID BENNETT
Director of First American Investment Funds, Inc.
Of counsel with Gray, Plant, Mooty, Mooty and Bennett,
Owner of three privately-held businesses
- --------------------------------------------------------------------------------
MR. ROBERT DAYTON
Director of First American Investment Funds, Inc.
Chief Executive Officer of Okabena Company
- --------------------------------------------------------------------------------
MR. ROGER GIBSON
Director of First American Investment Funds, Inc.
Vice President of North America-Mountain Region for United Airlines
- --------------------------------------------------------------------------------
MR. ANDREW HUNTER III
Director of First American Investment Funds, Inc.
Chairman of Hunter Keith Industries
- --------------------------------------------------------------------------------
MR. LEONARD KEDROWSKI
Director of First American Investment Funds, Inc.
Owner and President of Executive Management Consulting, Inc.
- --------------------------------------------------------------------------------
MR. ROBERT SPIES
Director of First American Investment Funds, Inc.
Retired Vice President, U.S. Bank National Association
- --------------------------------------------------------------------------------
MR. JOSEPH STRAUSS
Director of First American Investment Funds, Inc.
Former Chairman of First American Funds,
Owner and President of Strauss Management Company
- --------------------------------------------------------------------------------
MS. VIRGINIA STRINGER
Chairman of First American Investment Funds, Inc.
Owner and President of Strategic Management Resources, Inc.
- --------------------------------------------------------------------------------
<PAGE>
FIRST AMERICAN INVESTMENT FUNDS, INC.
1 Freedom Valley Drive
Oaks, Pennsylvania 19456
INVESTMENT ADVISOR
FIRST AMERICAN ASSET MANAGEMENT,
A DIVISION OF U.S. BANK NATIONAL ASSOCIATION This report and the financial
601 Second Avenue South statements contained herein
Minneapolis, Minnesota 55402 are submitted for the general
information of the
CUSTODIAN shareholders of the
U.S. BANK NATIONAL ASSOCIATION corporation. The report is not
180 East Fifth Street authorized for distribution to
St. Paul, Minnesota 55101 prospective investors in the
corporation unless preceded or
ADMINISTRATOR accompanied by an effective
SEI INVESTMENTS MANAGEMENT prospectus for each of the
CORPORATION funds included. Shares in the
1 Freedom Valley Drive funds are not deposits or
Oaks, Pennsylvania 19456 obligations of, or guaranteed
or endorsed by, U.S. Bank or
TRANSFER AGENT any of its affiliates. Such
DST SYSTEMS, INC. shares are also not federally
330 West Ninth Street insured by the Federal Deposit
Kansas City, Missouri 64105 Insurance Corporation, the
Federal Reserve Board, or any
DISTRIBUTOR other agency. Investment in
SEI INVESTMENTS DISTRIBUTION CO. the shares involve investment
1 Freedom Valley Drive risk including loss of
Oaks, Pennsylvania 19456 principal amount invested.
INDEPENDENT AUDITORS Past performance does not
ERNST & YOUNG LLP guarantee future results. The
1400 Pillsbury Center principal value of an
200 South Sixth Street investment will fluctuate so
Minneapolis, Minnesota 55402 that an investor's shares,
when redeemed, may be worth
COUNSEL more or less than their
DORSEY & WHITNEY LLP original cost.
220 South Sixth Street
Minneapolis, Minnesota 55402
- --------------------------------------------------------------------------------
[LOGO] FIRST AMERICAN
THE POWER OF DISCIPLINED INVESTING(R) 5/1999 172-99
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