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Previous: EVERGREEN MONEY MARKET TRUST, 497J, 2000-05-23 |
Next: FIRST AMERICAN INVESTMENT FUNDS INC, 497, 2000-05-23 |
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
EQUITY
FUNDS
SEMIANNUAL REPORT
2000
FIRST AMERICAN
INVESTMENT FUNDS, INC.
<PAGE>
FIRST AMERICAN
FAMILY OF FUNDS
INVESTMENTS FOR EVERY GOAL
First American Funds offers a full range of investment strategies to help you
create a personalized, diversified portfolio. With our disciplined focus on
consistent, competitive performance and highly developed team approach to
investment decision making, First American Funds can help build a winning
strategy for any investor.
HIGHER RISK (o)
AND RETURN POTENTIAL |
|
(*) EQUITY FUNDS
|
| LARGE CAP FUNDS
| Balanced
| Equity Income
| Equity Index
| Large Cap Growth
| Large Cap Value
|
| MID CAP FUNDS
| Mid Cap Growth
| Mid Cap Value
|
| SMALL CAP FUNDS
| Small Cap Growth
| Small Cap Value
|
| INTERNATIONAL FUNDS
| Emerging Markets
| International
| International Index
|
| SECTOR FUNDS
| Health Sciences
| Real Estate Securities
| Technology
|
(*) FUNDS OF FUNDS
|
|
(*) BOND FUNDS
|
|
(*) TAX FREE BOND FUNDS
|
|
(*) MONEY MARKET FUNDS
|
|
LOWER RISK (o)
AND RETURN POTENTIAL
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
Message to Shareholders 1
- --------------------------------------------------------------------------------
LARGE CAP FUNDS 2
- --------------------------------------------------------------------------------
Statements of Net Assets 2
- --------------------------------------------------------------------------------
Statements of Operations 16
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets 18
- --------------------------------------------------------------------------------
Financial Highlights 20
- --------------------------------------------------------------------------------
MID CAP FUNDS 24
- --------------------------------------------------------------------------------
Statements of Net Assets 24
- --------------------------------------------------------------------------------
Statements of Operations 28
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets 29
- --------------------------------------------------------------------------------
Financial Highlights 30
- --------------------------------------------------------------------------------
SMALL CAP FUNDS 32
- --------------------------------------------------------------------------------
Statements of Net Assets 32
- --------------------------------------------------------------------------------
Statements of Operations 36
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets 37
- --------------------------------------------------------------------------------
Financial Highlights 38
- --------------------------------------------------------------------------------
INTERNATIONAL FUNDS 40
- --------------------------------------------------------------------------------
Statements of Net Assets 40
- --------------------------------------------------------------------------------
Statements of Operations 52
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets 53
- --------------------------------------------------------------------------------
Financial Highlights 54
- --------------------------------------------------------------------------------
SECTOR FUNDS 56
- --------------------------------------------------------------------------------
Statements of Net Assets 56
- --------------------------------------------------------------------------------
Statements of Operations 62
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets 63
- --------------------------------------------------------------------------------
Financial Highlights 64
- --------------------------------------------------------------------------------
Notes to Financial Statements 68
- --------------------------------------------------------------------------------
Notice to Shareholders 79
- --------------------------------------------------------------------------------
Tribute to David T. Bennett 81
- --------------------------------------------------------------------------------
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
<PAGE>
MESSAGE TO SHAREHOLDERS MARCH 31, 2000
DEAR SHAREHOLDERS:
On behalf of the Board of Directors of First American Funds, thank you for
the opportunity to manage your mutual fund investments. If you are a new
investor, we welcome you to the First American family of funds. If you are
a long-term investor, we are again proud to meet your ongoing investment
needs.
Whether you're new to investing or an experienced investor at it, the past
six months have been a period of rapidly changing markets and hand
wringing. The Dow Jones Industrial Average (the "Dow") moved steadily
upward during the fourth quarter of 1999, only to surrender its gains early
in the first quarter of this year due to concerns over rising interest
rates. The Dow regained momentum late in the first quarter after investors
looked past rate hikes to another period of strong corporate profits.
During the same period, the Nasdaq reached record heights only to suffer a
dramatic correction.
The Nasdaq shattered the 5,000 barrier led by the performance of technology
stocks, particularly genetics, semiconductor, and communications stocks.
For several months, technology reigned, while all other sectors scrambled
for attention. That changed when the technology bubble burst in late March
leaving many investors concerned about the long-term viability of New
Economy stocks.
Active fund management and an emphasis on technology and communication
stocks at home and abroad have also driven the strong performance of the
International and Large Cap Growth funds during the six months ended March
31, 2000. Active portfolio management has played a key role in the
performance of these and other First American equity funds, with First
American Funds' portfolio managers and their teams selecting individual
holdings based on extensive research and analysis.
Within this report, you'll find financial statements on the First American
equity funds during the past six months, plus a complete list of fund
holdings. In addition, the Notice to Shareholders section contains
important shareholder information.
In closing, we encourage you to maintain a diversified portfolio and to
stay the course amid volatile markets. Although dramatic fluctuations are
becoming commonplace, investors may be able to better weather volatility
through balanced portfolios coupled with a disciplined investment approach.
Thank you for your confidence in First American Funds.
Sincerely,
/s/ Virginia L. Stringer /s/ Paul A. Dow
VIRGINIA L. STRINGER PAUL A. DOW
Chair Chief Investment Officer and President
First American Investment Funds, First American Asset Management
Inc.
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 1)
<PAGE>
STATEMENTS OF NET ASSETS MARCH 31, 2000 (UNAUDITED)
BALANCED FUND
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
COMMON STOCKS -- 56.2%
BASIC MATERIALS -- 3.2%
Alcoa 62,800 $ 4,412
Ecolab 13,700 503
International Paper 65,600 2,804
Praxair 116,600 4,853
------------
12,572
------------
CAPITAL GOODS -- 3.0%
Affymetrix* 1,800 267
General Electric 6,300 978
Honeywell International 105,500 5,559
Minnesota Mining & Manufacturing 55,800 4,942
------------
11,746
------------
COMMUNICATION SERVICES -- 5.1%
AT&T 88,900 5,001
Bell Atlantic 84,200 5,147
MCI WorldCom* 74,200 3,362
Nextel Communications, Cl A* 7,700 1,142
Nokia, ADR 7,000 1,521
SBC Communications 81,744 3,433
Vodafone, ADR 7,000 389
------------
19,995
------------
CONSUMER CYCLICALS -- 3.9%
Best Buy* 11,400 980
Federated Department Stores* 114,500 4,780
Ford Motor 71,600 3,289
Home Depot 10,100 651
Internet Capital* 3,500 316
Kohls* 5,200 533
May Department Stores 122,750 3,498
Omnicom Group 6,550 612
Wal-Mart Stores 12,300 683
------------
15,342
------------
CONSUMER STAPLES -- 3.7%
Cox Communications* 18,800 912
General Mills 132,100 4,780
Kimberly Clark 102,000 5,712
McDonald's 53,900 2,025
MediaOne Group* 6,600 535
Walgreen 30,200 778
------------
14,742
------------
ENERGY -- 5.1%
Exxon Mobil 72,000 5,602
Halliburton 95,200 3,903
Royal Dutch Petroleum, ADR 86,400 4,973
Schlumberger 9,400 719
Texaco 96,000 5,148
------------
20,345
------------
FINANCIALS -- 14.8%
Allstate 89,600 2,134
American Express 31,400 4,677
American International Group 34,700 3,800
BALANCED FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
Associates First Capital 162,400 $ 3,481
Bank of America 52,800 2,769
Bank of New York 9,400 391
Bank One 59,900 2,059
Charles Schwab 7,700 437
Chase Manhattan 75,400 6,574
Cigna 37,900 2,871
Citigroup 77,800 4,615
Fannie Mae 87,000 4,910
Firstar 93,600 2,147
Fleet Boston Financial 138,990 5,073
Household International 94,600 3,530
Mellon Financial 138,700 4,092
Morgan Stanley Dean Witter 5,200 424
Wells Fargo 116,100 4,753
------------
58,737
------------
HEALTH CARE -- 5.4%
American Home Products 75,800 4,065
Amgen* 6,000 368
Baxter International 79,700 4,996
Bristol-Myers Squibb 6,500 375
Genentech* 1,000 152
Guidant* 14,200 835
Johnson & Johnson 7,700 539
Medtronic 15,400 792
Merck 42,600 2,647
Pfizer 25,700 940
Pharmacia & Upjohn 87,600 5,190
Schering Plough 9,700 356
------------
21,255
------------
TECHNOLOGY -- 9.5%
America Online* 11,800 794
Applied Materials* 2,200 207
Automatic Data Processing 6,600 318
BMC Software* 7,700 380
Broadcom Corporation, Cl A* 2,100 510
Brocade Communications Systems* 3,400 610
Cisco Systems* 25,000 1,933
Dell Computer* 10,000 539
eBay* 2,400 422
Electronic Data Systems 66,500 4,268
EMC* 9,000 1,125
First Data 100,600 4,452
IBM 43,100 5,086
Intel 50,600 6,676
JDS Uniphase 2,000 241
Lucent Technologies 6,500 395
Microsoft* 15,500 1,647
Motorola 36,700 5,225
Oracle Systems* 17,100 1,335
PE Corp-PE Biosystems Group 1,700 164
Palm* 600 27
PMC-Sierra* 1,200 244
Sun Microsystems* 6,700 628
Tellabs* 5,900 372
------------
37,598
------------
The accompanying notes are an integral part of the financial statements.
(2 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
BALANCED FUND (CONTINUED)
DESCRIPTION SHARES/PAR (000) VALUE (000)
- -------------------------------------------------------------------------------
TRANSPORTATION -- 1.0%
Delta Air Lines 59,600 $ 3,174
Southwest Airlines 21,300 443
United Parcel Service 6,600 416
------------
4,033
------------
UTILITIES -- 1.5%
AES* 5,200 409
Duke Power 76,700 4,027
Enron 18,700 1,400
------------
5,836
------------
TOTAL COMMON STOCKS
(Cost $187,185) 222,201
------------
CORPORATE OBLIGATIONS -- 17.3%
CONSUMER GOODS -- 0.9%
Dayton Hudson
5.875%, 11/01/08 $ 4,000 3,635
------------
ENERGY -- 0.7%
Consolidated Natural Gas
7.250%, 10/01/04 3,000 2,962
------------
FINANCE -- 8.1%
Associates
5.800%, 04/20/04 6,000 5,648
Bear Stearns
6.150%, 03/02/04 5,000 4,744
Chase Manhattan
5.750%, 04/15/04 5,000 4,723
Cigna
7.400%, 01/15/03 2,825 2,780
Lehman Brothers
6.900%, 03/30/01 4,050 4,040
Newcourt Credit
6.875%, 02/16/05 5,000 4,788
Wachovia
6.605%, 10/01/25 5,500 5,291
------------
32,014
------------
MANUFACTURING -- 4.6%
Boeing
7.250%, 06/15/25 5,000 4,726
8.750%, 09/15/31 2,000 2,238
Ford Motor
5.800%, 01/12/09 4,000 3,527
GMAC
6.150%, 04/05/07 5,000 4,618
PPG Industries
7.400%, 08/15/19 3,000 2,941
------------
18,050
------------
SERVICES -- 1.7%
Hertz
6.250%, 03/15/09 5,000 4,514
Time Warner
8.875%, 10/01/12 2,025 2,217
------------
6,731
------------
BALANCED FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------------------------------
UTILITIES -- 1.3%
GTE South
6.125%, 06/15/07 $ 5,000 $ 4,613
MCI Communications
7.125%, 06/15/27 500 496
------------
5,109
------------
TOTAL CORPORATE OBLIGATIONS
(Cost $71,892) 68,501
------------
U.S. GOVERNMENT AGENCY MORTGAGE-
BACKED OBLIGATIONS -- 12.9%
FHLB
6.250%, 08/13/04 6,500 6,297
6.375%, 08/15/06 650 625
FHLMC
6.500%, 01/01/01 163 159
5.000%, 02/15/01 5,500 5,425
5.950%, 01/19/06 2,000 1,891
FHLMC CMO 1606-H
6.000%, 11/15/08 3,150 3,015
FHLMC
6.500%, 09/01/12 331 319
8.000%, 11/01/24 284 285
6.500%, 09/01/25 294 276
FNMA
6.000%, 03/01/03 166 157
5.500%, 03/01/06 10,424 9,749
6.000%, 05/01/29 4,890 4,446
FNMA CMO 1993-50
5.500%, 10/25/22 5,000 4,332
FNMA
6.500%, 04/01/29 5,607 5,256
7.000%, 04/01/29 1,987 1,910
FNMA
6.476%, 04/01/18 (A) 231 233
GNMA
7.500%, 09/15/27 383 379
6.000%, 02/15/29 7 6
7.000%, 04/15/29 3,887 3,766
7.000%, 04/15/29 2,783 2,697
------------
TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-
BACKED OBLIGATIONS
(Cost $53,166) 51,223
------------
U.S. TREASURY OBLIGATIONS -- 6.8%
U.S. Treasury Bonds
7.875%, 02/15/21 5,000 5,986
7.125%, 02/15/23 7,000 7,830
6.875%, 08/15/25 8,000 8,790
U.S. Treasury Note
6.875%, 05/15/06 4,000 4,106
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $26,635) 26,712
------------
PRIVATE MORTGAGE-BACKED SECURITIES -- 1.9%
FIXED RATE -- 1.9%
CMC Securities 1993-D D2
6.400%, 07/25/23 15 15
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 3)
<PAGE>
STATEMENTS OF NET ASSETS MARCH 31, 2000 (UNAUDITED)
BALANCED FUND (CONTINUED)
DESCRIPTION PAR (000)/SHARES VALUE (000)
- -------------------------------------------------------------------------------
Drexel Burnham Lambert Trust S 2
9.000%, 08/01/18 $ 120 $ 119
General Electric Capital Mortgage 1994-17 A6
7.000%, 05/25/24 2,675 2,622
GMAC Commercial Mortgage 1997-C2 C
6.910%, 12/15/07 5,000 4,679
------------
7,435
------------
TOTAL PRIVATE MORTGAGE-BACKED SECURITIES
(Cost $7,736) 7,435
------------
ASSET-BACKED SECURITIES -- 4.4%
AUTOS -- 1.2%
Union Acceptance 1998-B A5
6.020%, 01/09/06 5,000 4,807
------------
CREDIT CARDS -- 1.0%
Circuit City Credit Card Master Trust 1995-1 A
6.375%, 08/15/05 4,000 3,989
------------
HOME EQUITY -- 2.2%
Asset Securitization 1996-D6 A1B
6.880%, 11/13/26 3,000 2,942
Merrill Lynch Mortgage Investors 1995-C3 A3
7.072%, 12/26/25 (A) 6,000 5,863
------------
8,805
------------
TOTAL ASSET-BACKED SECURITIES
(Cost $18,250) 17,601
------------
U.S. GOVERNMENT AGENCY BACKED
OBLIGATIONS -- 0.0%
Israel Government Trust Certificate Series 1C
9.250%, 11/15/01 (B) 132 135
------------
TOTAL U.S. GOVERNMENT AGENCY BACKED OBLIGATIONS
(Cost $132) 135
------------
RELATED PARTY MONEY MARKET FUND -- 1.1%
First American Prime Obligations Fund (C) 4,484,360 4,484
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $4,484) 4,484
------------
TOTAL INVESTMENTS -- 100.6%
(Cost $369,480) 398,292
------------
OTHER ASSETS AND LIABILITIES, NET -- (0.6%) (D) (2,392)
------------
BALANCED FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- -------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital -- Class A ($0.0001 par value --
2 billion authorized) based on 4,863,782
outstanding shares $ 56,706
Portfolio Capital -- Class B ($0.0001 par value --
2 billion authorized) based on 4,351,223
outstanding shares 61,432
Portfolio Capital -- Class C ($0.0001 par value --
2 billion authorized) based on 118,959
outstanding shares 1,645
Portfolio Capital -- Class Y ($0.0001 par value --
2 billion authorized) based on 22,499,545
outstanding shares 245,585
Undistributed net investment income 274
Accumulated net realized gain on investments 1,446
Net unrealized appreciation of investments 28,812
------------
TOTAL NET ASSETS -- 100.0% $ 395,900
------------
Net asset value and redemption price per share -- Class A $ 12.42
Maximum sales charge of 5.25% (E) 0.69
------------
Offering price per share -- Class A $ 13.11
------------
Net asset value and offering price per share -- Class B (F) $ 12.35
------------
Net asset value and redemption price per share -- Class C (G) $ 12.41
Maximum sales charge of 1.00% (H) 0.13
------------
Offering price per share -- Class C $ 12.54
------------
Net asset value, offering price, and redemption
price per share -- Class Y $ 12.46
------------
*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, 2000.
(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 $88,862
Payable upon return of securities on loan $(88,862)
(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
Cl--Class
CMO--Collateralized Mortgage Obligation
FHLB--Federal Home Loan Bank
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.
(4 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
EQUITY INCOME FUND
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
COMMON STOCKS -- 91.0%
BASIC MATERIALS -- 5.1%
E.I. du Pont de Nemours 96,500 $ 5,102
Ecolab 210,900 7,737
International Paper 87,000 3,719
------------
16,558
------------
CAPITAL GOODS -- 6.8%
Emerson Electric 73,400 3,881
Honeywell International 102,400 5,395
General Electric 41,800 6,487
Minnesota Mining & Manufacturing 53,000 4,694
Parker Hannifin 39,600 1,636
------------
22,093
------------
COMMUNICATION SERVICES -- 9.7%
AT&T 194,400 10,935
Bell Atlantic 57,800 3,533
SBC Communications 141,912 5,960
Sprint 97,900 6,168
Vodafone, ADR 83,400 4,634
------------
31,230
------------
CONSUMER CYCLICALS -- 4.8%
Ford Motor 73,000 3,353
Intimate Brands 216,300 8,868
Omnicom Group 35,400 3,308
------------
15,529
------------
CONSUMER STAPLES -- 5.7%
Colgate-Palmolive 97,900 5,519
Kimberly Clark 118,500 6,636
PepsiCo 98,900 3,418
Sara Lee 152,200 2,740
------------
18,313
------------
ENERGY -- 11.8%
BP Amoco, ADR 177,496 9,418
Chevron 55,600 5,140
Exxon Mobil 170,624 13,277
Royal Dutch Petroleum, ADR 179,200 10,315
------------
38,150
------------
FINANCIALS -- 17.0%
American Express 40,000 5,958
Associates First Capital 143,608 3,079
Bank of America 75,824 3,976
Bank of New York 195,800 8,138
Fannie Mae 45,000 2,540
Firstar 178,100 4,085
Household International 108,097 4,033
John Hancock Financial Services* 393,200 7,102
Mellon Financial 220,700 6,511
XL Capital, Cl A 54,982 3,045
Zions Bancorp 158,600 6,602
------------
55,069
------------
EQUITY INCOME FUND (CONTINUED)
DESCRIPTION SHARES/PAR (000) VALUE (000)
- -------------------------------------------------------------------------------
HEALTH CARE -- 9.0%
American Home Products 143,900 $ 7,717
Baxter International 63,000 3,949
Johnson & Johnson 38,200 2,676
Merck 99,500 6,181
Pfizer 130,500 4,771
Schering Plough 105,800 3,888
------------
29,182
------------
REAL ESTATE INVESTMENT TRUSTS -- 6.8%
Archstone Community Trust 53,900 1,075
Crescent Real Estate Equities 134,700 2,357
Duke Realty Investments 195,172 3,733
Equity Office Properties Trust 48,000 1,206
Equity Residential Properties Trust 26,600 1,069
Healthcare Realty Trust 178,400 2,988
Kimco Realty 31,600 1,185
Manufactured Home Communities 172,400 3,987
Simon Property Group 180,200 4,325
------------
21,925
------------
TECHNOLOGY -- 5.5%
Automatic Data Processing 129,800 6,263
IBM 16,500 1,947
Intel 38,000 5,014
Motorola 32,400 4,613
------------
17,837
------------
TRANSPORTATION -- 1.6%
Knightsbridge Tankers Limited 238,500 4,248
United Parcel Service 16,500 1,040
------------
5,288
------------
UTILITIES -- 7.2%
Consolidated Edison 116,400 3,376
Enron 84,500 6,327
FPL Group 63,000 2,902
Northern States Power 357,900 7,113
Reliant Energy 157,500 3,691
------------
23,409
------------
TOTAL COMMON STOCKS
(Cost $187,168) 294,583
------------
CONVERTIBLE BONDS -- 3.0%
Centocor, 20.300 shares
4.750%, 02/15/05 $ 3,710 4,155
Protein Design Labs, 6.6225 Shares
5.500%, 02/15/07 985 680
Tribune (PHONES)
2.000%, 05/15/29 24 3,413
Viropharma, 9.1620 Shares
6.000%, 03/01/07 2,060 1,488
------------
TOTAL CONVERTIBLE BONDS
(Cost $9,269) 9,736
------------
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 5)
<PAGE>
STATEMENTS OF NET ASSETS MARCH 31, 2000 (UNAUDITED)
EQUITY INCOME FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
PREFERRED CONVERTIBLE STOCKS -- 3.5%
Adelphia Communications 17,800 $ 2,709
Consolidated Freight Transportation 76,300 3,224
Houston Industries 33,900 5,390
------------
TOTAL PREFERRED CONVERTIBLE STOCKS
(Cost $9,292) 11,323
------------
RELATED PARTY MONEY MARKET FUND -- 0.8%
First American Prime Obligations Fund (A) 2,535,410 2,535
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $2,535) 2,535
------------
TOTAL INVESTMENTS -- 98.3%
(Cost $208,264) 318,177
------------
OTHER ASSETS AND LIABILITIES, NET -- 1.7% (B) 5,637
------------
NET ASSETS:
Portfolio Capital -- Class A ($0.0001 par value --
2 billion authorized) based on
1,285,698 outstanding shares $ 19,669
Portfolio Capital -- Class B ($0.0001 par value --
2 billion authorized) based on
689,078 outstanding shares 9,566
Portfolio Capital -- Class C ($0.0001 par value --
2 billion authorized) based on
161,986 outstanding shares 2,691
Portfolio Capital -- Class Y ($0.0001 par value --
2 billion authorized) based on
19,134,801 outstanding shares 158,137
Undistributed net investment income 147
Accumulated net realized gain on investments 23,691
Net unrealized appreciation of investments 109,913
------------
TOTAL NET ASSETS -- 100.0% $ 323,814
------------
Net asset value and redemption price per share -- Class A $ 15.16
Maximum sales charge of 5.25% (C) 0.84
------------
Offering price per share -- Class A $ 16.00
------------
Net asset value and offering price per share -- Class B (D) $ 15.11
------------
Net asset value and redemption price per share -- Class C (E) $ 15.14
Maximum sales charge of 1.00% (F) 0.15
------------
Offering price per share -- Class C $ 15.29
------------
Net asset value, offering price, and redemption
price per share -- Class Y $ 15.22
------------
EQUITY INCOME FUND (CONCLUDED)
DESCRIPTION
- --------------------------------------------------------------------------------
* 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 $78,777
Payable upon return of securities on loan $(78,777)
(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 calculated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%.
ADR--American Depositary Receipt
Cl--Class
PHONES--Participation Hybrid Option Note Exchangeable Securities Equity Linked
Debt Security Exchangeable At Holders Option For 95% of 1 America
Online share.
The accompanying notes are an integral part of the financial statements.
(6 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
EQUITY INDEX FUND
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
COMMON STOCKS -- 99.8%
BASIC MATERIALS -- 2.5%
Air Products & Chemicals 32,400 $ 921
Alcan Aluminum, ADR 30,900 1,047
Alcoa 51,000 3,583
Allegheny Teledyne 14,350 288
Arch Coal 2,510 18
Archer Daniels Midland 83,000 861
Barrick Gold 53,000 831
Bemis 7,100 262
Bethlehem Steel* 17,600 106
Boise Cascade 8,200 285
Champion International 13,400 714
Dow Chemical 30,100 3,431
E.I. du Pont de Nemours 144,838 7,658
Eastman Chemical 10,700 487
Ecolab 18,200 668
Engelhard 16,900 256
FMC* 4,100 232
Freeport-McMoran Copper & Gold, Cl B 22,100 267
Georgia Pacific 23,900 946
Great Lakes Chemical 8,200 279
Hercules 14,200 229
Homestake Mining 35,000 210
Inco 25,700 471
International Flavors & Fragrances 14,900 522
International Paper 57,600 2,462
Louisiana Pacific 14,400 200
Mead 14,700 514
Monsanto 87,800 4,522
Newmont Mining 22,500 505
Nucor 12,100 605
Phelps Dodge 11,470 545
Placer Dome Group 43,800 356
Potlatch 4,200 181
PPG Industries 24,000 1,255
Pactiv* 22,900 200
Praxair 22,000 916
Reynolds Metals 8,600 575
Rohm & Haas 30,599 1,366
Sigma Aldrich 14,800 398
Temple Inland 7,700 384
Union Carbide 18,500 1,079
USX-U.S. Steel Group 12,100 302
Vulcan Materials 13,900 637
W.R. Grace* 9,500 121
Westvaco 13,700 457
Weyerhaeuser 32,300 1,841
Willamette Industries 15,600 626
Worthington Industries 12,300 152
------------
44,771
------------
CAPITAL GOODS -- 8.3%
Allied Waste Industries* 25,400 167
Avery Dennison 15,600 953
B.F. Goodrich 15,800 453
Ball 4,400 152
Biogen* 20,800 1,453
Boeing 120,700 4,579
Briggs & Stratton 3,100 127
Caterpillar 49,400 1,948
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
Cooper Industries 13,000 $ 455
Corning 38,100 7,391
Crane 9,100 214
Crown Cork & Seal 20,000 320
Cummins Engine 5,600 210
Danaher 19,700 1,005
Deere 32,800 1,246
Dover 28,300 1,355
Eaton 10,000 780
Emerson Electric 59,500 3,146
Fluor 10,800 335
General Dynamics 27,700 1,378
General Electric 454,800 70,579
Honeywell International 109,749 5,782
Illinois Tool Works 41,200 2,276
Ingersoll Rand 22,500 996
ITT Industries 12,400 385
Johnson Controls 11,600 627
Linear Technology 42,400 2,332
Lockheed Martin 55,700 1,138
McDermott International 7,900 73
Milacron 5,000 72
Millipore 6,200 350
Minnesota Mining & Manufacturing 54,900 4,862
Molex 27,150 1,595
Nacco Industries, Cl A 1,000 48
National Service Industries 5,800 122
Navistar International* 8,700 349
Northrop 9,400 498
Owens-Illinois* 22,000 371
Paccar 10,800 540
Pall 16,800 377
Parker Hannifin 15,400 636
Pitney Bowes 36,600 1,636
Rockwell International 26,200 1,095
Sealed Air* 11,600 630
Solectron* 82,300 3,297
Textron 20,300 1,236
Thermo Electron* 22,700 463
Thomas & Betts 8,000 226
Timken 8,600 140
Tyco International 234,600 11,701
United Technologies 65,600 4,145
Waste Management 88,400 1,210
------------
147,454
------------
COMMUNICATION SERVICES -- 7.5%
Alltel 43,300 2,731
AT&T 443,000 24,919
Bell Atlantic 214,900 13,136
BellSouth 261,200 12,276
Centurytel 19,500 724
Global Crossing* 107,270 4,391
GTE 134,400 9,542
MCI WorldCom* 393,650 17,837
Nextel Communications, Cl A* 50,500 7,487
SBC Communications 473,026 19,867
Sprint 120,800 7,610
Sprint (PCS Group)* 119,800 7,824
US West 69,800 5,069
------------
133,413
------------
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 7)
<PAGE>
STATEMENTS OF NET ASSETS MARCH 31, 2000 (UNAUDITED)
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
CONSUMER CYCLICALS -- 8.2%
American Greetings, Cl A 9,200 $ 168
Armstrong World Industries 5,800 104
Autozone* 19,600 544
Bed Bath & Beyond* 19,200 756
Best Buy* 28,300 2,434
Black & Decker 12,200 458
Brunswick 12,300 233
Carnival 86,600 2,149
Cendant* 99,000 1,831
Centex 8,300 198
Circuit City Stores 28,200 1,717
Consolidated Stores* 15,900 181
Cooper, Tire & Rubber 10,100 127
Costco Wholesale* 61,700 3,243
Dana 23,000 648
Delphi Automotive Systems 76,900 1,230
Dillards, Cl A 15,400 253
Dollar General 37,200 1,000
Dow Jones 12,200 876
Dun & Bradstreet 21,900 627
Federated Department Stores* 29,100 1,215
Ford Motor 167,100 7,676
Gannett 38,300 2,695
Gap 118,000 5,878
General Motors 88,500 7,329
Genuine Parts 25,700 614
Goodyear Tire & Rubber 21,700 506
H & R Block 13,800 618
Harcourt General 10,000 372
Harley-Davidson 20,900 1,659
Harrah's Entertainment* 16,800 312
Hasbro 23,800 393
Hilton Hotels 51,200 397
Home Depot 319,200 20,588
Ims Health 43,200 732
Interpublic Group 39,000 1,843
J.C. Penney 37,700 561
Jostens 4,600 112
Kaufman & Broad Home 6,500 139
Kmart* 66,300 642
Knight-Ridder 11,400 581
Kohls* 22,500 2,306
Leggett & Platt 27,800 598
Limited 29,700 1,251
Liz Claiborne 8,300 380
Lowe's 52,900 3,088
Marriott International, Cl A 34,100 1,074
Masco 60,900 1,248
Mattel 56,900 594
May Department Stores 46,600 1,328
Maytag 11,700 388
McGraw-Hill 27,400 1,247
Meredith 7,600 210
Mirage Resorts* 27,300 529
New York Times, Cl A 23,900 1,026
Nike, Cl B 38,150 1,512
Nordstrom 18,900 558
Office Depot* 44,500 515
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
Omnicom Group 24,500 $ 2,289
Owens Corning 7,400 143
Pulte 5,800 121
Reebok International* 7,500 69
Russell 4,500 64
Sears Roebuck 52,600 1,624
Sherwin Williams 22,200 487
Snap-On Tools 8,600 225
Springs Industries, Cl A 2,400 91
Stanley Works 12,300 324
Staples* 64,100 1,282
Tandy 26,900 1,365
Target 60,500 4,522
Times Mirror, Cl A 8,000 743
TJX 43,700 970
Toys 'R' Us* 32,400 480
Tribune 33,300 1,218
TRW 16,600 971
V.F 16,700 402
Wal-Mart Stores 617,600 34,277
Whirlpool 10,100 592
Young & Rubicam 9,700 456
------------
144,206
------------
CONSUMER STAPLES -- 9.8%
Adolph Coors, Cl B 5,000 239
Alberto-Culver, Cl B 7,800 186
Albertson's 58,800 1,823
Anheuser Busch 64,200 3,996
Avon Products 33,900 985
Bestfoods 38,400 1,798
Brown Forman, Cl B 9,200 501
Campbell Soup 59,800 1,839
Cardinal Health 38,900 1,785
CBS* 105,976 6,001
Clear Channel Communications* 46,900 3,239
Clorox 33,300 1,082
Coca-Cola 342,500 16,076
Coca-Cola Enterprises 58,400 1,259
Colgate-Palmolive 80,800 4,555
Comcast, Cl A 128,100 5,556
ConAgra 71,700 1,300
CVS 54,300 2,040
Darden Restaurants 18,400 328
Deluxe 10,800 286
Fort James 31,000 682
Fortune Brands 24,000 600
General Mills 41,500 1,502
Gillette 149,000 5,615
Great Atlantic & Pacific Tea 5,700 111
H.J. Heinz 49,600 1,730
Hershey Foods 19,000 926
Kellogg 57,600 1,476
Kimberly Clark 76,200 4,267
Kroger* 117,500 2,064
Longs Drug Stores 5,700 130
McDonald's 188,100 7,066
McKesson HBOC 39,700 834
MediaOne Group* 85,000 6,885
The accompanying notes are an integral part of the financial statements.
(8 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
Nabisco Group Holdings 43,900 $ 527
Newell Rubbermaid 39,700 985
PepsiCo 201,700 6,971
Philip Morris 329,700 6,965
Procter & Gamble 182,600 10,271
Quaker Oats 18,400 1,115
R.R. Donnelley & Sons 17,900 375
Ralston-Ralston Purina Group 43,300 1,185
Rite Aid 35,600 196
Safeway* 70,500 3,190
Sara Lee 129,200 2,326
Seagram 60,100 3,576
SUPERVALU 19,100 362
Sysco 46,200 1,649
Time Warner 178,200 17,820
Tricon Global Restaurants* 20,900 649
Tupperware 7,800 123
Unilever, ADR 79,099 3,807
UST 25,300 395
Viacom, Cl B* 96,900 5,111
Walgreen 140,700 3,623
Walt Disney 286,700 11,862
Wendy's International 17,100 345
William Wrigley Jr. 15,700 1,206
Winn Dixie Stores 21,500 418
------------
173,814
------------
ENERGY -- 5.4%
Amerada Hess 12,500 808
Anadarko Petroleum 18,000 696
Apache 15,300 761
Ashland Oil 10,200 341
Atlantic Richfield 44,400 3,774
Baker Hughes 44,800 1,355
Burlington Resources 30,600 1,132
Chevron 90,700 8,384
Conoco 90,500 2,319
Exxon Mobil 478,771 37,254
Halliburton 61,000 2,501
Kerr-McGee 13,200 762
Occidental Petroleum 54,500 1,131
Phillips Petroleum 35,400 1,637
Rowan* 12,300 362
Royal Dutch Petroleum, ADR 297,500 17,125
Schlumberger 76,400 5,845
Sunoco 12,200 334
Texaco 76,800 4,118
Tosco 20,200 615
Transocean Sedco Forex 29,325 1,505
Union Pacific Resources Group 33,900 492
Unocal 33,000 982
USX-Marathon Group 44,600 1,162
------------
95,395
------------
FINANCIALS -- 12.9%
AFLAC 36,900 1,681
Allstate 113,600 2,705
American Express 61,900 9,219
American General 33,800 1,897
American International Group 214,300 23,466
Amsouth Bancorp 57,900 865
Aon 35,700 1,151
Associates First Capital 102,599 2,199
Bank of America 236,100 12,380
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
Bank of New York 102,600 $ 4,264
Bank One 158,600 5,452
BB&T 48,900 1,372
Bear Stearns 15,885 725
Capital One Financial 27,400 1,313
Charles Schwab 113,700 6,460
Chase Manhattan 113,800 9,922
Chubb 24,000 1,621
Cigna 23,100 1,750
Cincinnati Financial 22,300 839
Citigroup 467,500 27,729
Comerica 21,300 892
Conseco 43,400 496
Countrywide Credit Industries 16,300 444
Fannie Mae 141,900 8,008
FHLMC 96,400 4,260
Fifth Third Bancorp 42,200 2,659
First Union 136,800 5,096
Firstar 137,600 3,156
Fleet Boston Financial 126,813 4,629
Franklin Resources 35,000 1,170
Golden West Financial 22,400 699
Hartford Financial Services Group 30,500 1,609
Household International 65,400 2,440
Huntington Bancshares 31,400 703
J.P. Morgan 23,400 3,083
Jefferson-Pilot 14,100 939
KeyCorp 65,800 1,250
Lehman Brothers Holdings 16,500 1,600
Lincoln National 27,300 915
Loew's 14,300 715
Marsh & McLennan 36,700 4,048
MBIA 13,500 703
MBNA 112,800 2,876
Mellon Financial 72,100 2,127
Merrill Lynch 51,300 5,386
MGIC Investment 14,700 641
Morgan Stanley Dean Witter 157,100 12,813
National City 88,900 1,834
Northern Trust 30,600 2,067
Old Kent Financial 17,100 553
Paine Webber Group 20,000 880
PNC Bank 40,300 1,816
Progressive 9,900 753
Providian Financial 19,600 1,698
Regions Financial 31,300 714
Safeco 18,700 497
SLM Holding 22,200 740
SouthTrust 24,100 613
St. Paul 31,900 1,089
State Street 21,800 2,112
Summit Bancorp 25,000 656
Suntrust Banks 43,600 2,518
Synovus Financial 40,800 770
T. Rowe Price 17,100 675
Torchmark 19,200 444
U.S. Bancorp 104,100 2,277
Union Planters 19,600 604
UnumProvident 35,600 605
Wachovia 27,400 1,851
Washington Mutual 80,400 2,131
Wells Fargo 229,200 9,383
------------
227,647
------------
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 9)
<PAGE>
STATEMENTS OF NET ASSETS MARCH 31, 2000 (UNAUDITED)
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
HEALTH CARE -- 8.7%
Abbott Laboratories 213,600 $ 7,516
Aetna 19,600 1,091
Allergan 18,100 905
Alza, Cl A* 14,100 530
American Home Products 181,000 9,706
Amgen* 141,700 8,697
Bausch & Lomb 7,900 412
Baxter International 40,000 2,507
Becton Dickinson 34,300 903
Biomet* 15,800 575
Boston Scientific* 58,300 1,243
Bristol-Myers Squibb 275,100 15,887
C.R. Bard 7,100 275
Columbia/HCA Healthcare 79,000 2,000
Eli Lilly 151,000 9,513
Guidant 42,600 2,505
HEALTHSOUTH* 55,700 310
Humana* 22,600 165
Johnson & Johnson 192,600 13,494
Mallinckrodt 10,100 290
Manor Care* 15,300 207
Medtronic 165,700 8,523
Merck 324,000 20,128
Pfizer 537,700 19,660
Pharmacia & Upjohn 71,700 4,248
Quintiles Transnational* 15,700 268
Schering Plough 204,000 7,497
St. Jude Medical* 11,500 297
Tenet Healthcare 44,200 1,017
United Healthcare 23,400 1,395
Warner Lambert 118,900 11,593
Watson Pharmaceuticals* 13,400 532
Wellpoint Health Networks* 8,700 608
------------
154,497
------------
TECHNOLOGY -- 33.6%
ADC Telecommunications* 41,700 2,247
Adobe Systems 16,400 1,826
Adaptec* 14,500 560
Advanced Micro Devices* 20,500 1,170
America Online* 316,500 21,285
Analog Devices* 48,500 3,907
Andrew* 11,600 265
Apple Computer* 22,400 3,042
Applied Materials* 106,200 10,009
Autodesk 8,500 387
Automatic Data Processing 87,700 4,232
BMC Software* 33,900 1,674
Cabletron Systems* 25,300 742
Ceridian* 19,500 374
Cisco Systems* 949,000 73,370
Citrix Systems* 24,900 1,650
Compaq Computer 235,600 6,273
Computer Associates International 75,100 4,445
Computer Sciences* 23,200 1,836
Compuware* 49,700 1,047
Comverse Technology* 10,600 2,003
Conexant Systems* 29,900 2,123
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
Dell Computer* 355,800 $ 19,191
Eastman Kodak 43,500 2,363
Electronic Data Systems 65,200 4,185
EMC* 141,056 17,632
Equifax 19,400 490
First Data 58,300 2,580
Gateway* 43,900 2,327
Hewlett Packard 139,200 18,453
IBM 249,800 29,476
IKON Office Solutions 21,200 131
Intel 463,200 61,113
KLA Tencor* 25,500 2,148
Lexmark International, Cl A* 17,700 1,872
LSI Logic* 41,200 2,992
Lucent Technologies 442,100 26,858
Micron Technology* 37,400 4,712
Microsoft* 721,800 76,691
Motorola 98,355 14,003
National Semiconductor* 24,000 1,455
NCR* 13,300 534
Network Appliance* 42,200 3,492
Nortel Networks 200,100 25,213
Novell* 45,500 1,302
Oracle Systems* 391,200 30,538
Parametric Technology* 37,600 792
Paychex 34,200 1,791
PE Corp-PE Biosystems Group 28,700 2,770
Peoplesoft* 37,000 740
Perkinelmer 6,500 432
Polaroid 6,100 145
QUALCOMM* 102,400 15,290
Raytheon, Cl B 47,900 850
Sabre Holdings 18,063 667
Scientific-Atlanta 21,900 1,389
Seagate Technology* 29,900 1,801
Shared Medical Systems 3,600 187
Silicon Graphics* 25,400 268
Sun Microsystems* 218,900 20,512
Tektronix 6,500 364
Tellabs* 55,700 3,508
Teradyne* 23,700 1,949
Texas Instruments 112,700 18,032
3Com* 47,400 2,637
Unisys* 43,000 1,096
Veritas Software* 53,500 7,008
W.W. Grainger 12,800 694
Xerox 91,800 2,387
Xilinx* 44,500 3,685
Yahoo* 73,000 12,510
------------
595,722
------------
TRANSPORTATION -- 0.6%
AMR* 20,400 650
Burlington Northern Santa Fe 65,000 1,438
CSX 31,100 731
Delta Air Lines 17,900 953
FedEx* 40,300 1,572
Kansas City Southern Industries 15,300 1,315
Norfolk Southern 56,600 814
The accompanying notes are an integral part of the financial statements.
(10 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
EQUITY INDEX FUND (CONTINUED)
DESCRIPTION SHARES/PAR (000) VALUE (000)
- -------------------------------------------------------------------------------
Ryder System 9,400 $ 213
Southwest Airlines 68,200 1,419
U.S. Air Group* 10,200 284
Union Pacific 34,500 1,350
------------
10,739
------------
UTILITIES -- 2.3%
AES* 28,400 2,236
Ameren 19,100 591
American Electric Power 27,300 814
Carolina Power & Light 22,100 717
Central & South West 30,600 522
Cinergy 22,400 482
CMS Energy 16,900 306
Coastal 29,000 1,334
Columbia Gas Systems 11,200 664
Consolidated Edison 31,100 902
Constellation Energy Group 20,100 641
Dominion Resources of Virginia 33,098 1,272
DTE Energy 20,500 594
Duke Power 50,200 2,635
Eastern Enterprises 3,700 222
Edison International 49,400 818
El Paso Energy 30,800 1,244
Enron 99,300 7,435
Entergy 36,600 739
FirstEnergy 33,700 695
Florida Progress 13,200 606
FPL Group 24,300 1,119
GPU 17,300 474
New Century Energies 16,200 487
Niagara Mohawk Holdings* 25,200 340
Nicor 6,500 214
Northern States Power 20,700 411
ONEOK 4,300 108
PECO Energy 26,200 966
Peoples Energy 4,900 134
PG&E 51,700 1,086
Pinnacle West Capital 12,000 338
PPL Corporation 21,200 444
Public Service Enterprise Group 31,200 924
Reliant Energy 42,500 996
Sempra Energy 27,400 459
Southern 96,200 2,092
Texas Utilities 39,000 1,158
Unicom 30,400 1,110
Williams 59,900 2,632
------------
40,961
------------
TOTAL COMMON STOCKS
(Cost $947,431) 1,768,619
------------
U.S. TREASURY OBLIGATIONS -- 0.0%
U.S. Treasury Bill
5.650%, 06/22/00 (A) $ 550 543
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $543) 543
------------
EQUITY INDEX FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 99.9%
(Cost $947,974) $ 1,769,162
------------
OTHER ASSETS AND LIABILITIES, NET -- 0.1% (B) 2,522
------------
NET ASSETS:
Portfolio Capital -- Class A ($0.0001 par value --
2 billion authorized) based on
4,837,203 outstanding shares $ 108,915
Portfolio Capital -- Class B ($0.0001 par value --
2 billion authorized) based on
4,346,063 outstanding shares 96,442
Portfolio Capital -- Class C ($0.0001 par value --
2 billion authorized) based on
1,016,226 outstanding shares 27,072
Portfolio Capital -- Class Y ($0.0001 par value --
2 billion authorized) based on
51,074,690 outstanding shares 716,229
Undistributed net investment income 125
Accumulated net realized gain on investments 1,699
Net unrealized appreciation of investments and open
futures contracts 821,202
------------
TOTAL NET ASSETS -- 100.0% $ 1,771,684
------------
Net asset value and redemption price per share -- Class A $ 28.94
Maximum sales charge of 5.25% (C) 1.60
------------
Offering price per share -- Class A $ 30.54
------------
Net asset value and offering price per share -- Class B (D) $ 28.70
------------
Net asset value and redemption price per share -- Class C (E) $ 28.88
Maximum sales charge of 1.00% (F) 0.29
------------
Offering price per share -- Class C $ 29.17
------------
Net asset value, offering price, and redemption
price per share -- Class Y $ 28.93
------------
* 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) Other assets and liabilities representing greater than five percent of total
net assets include the following (000):
Cash collateral received for securities on loan $ 456,875
Payable upon return of securities on loan $(456,875)
(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 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
The accompanying notes are an integral part of the financial statements.
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 11)
<PAGE>
STATEMENTS OF NET ASSETS MARCH 31, 2000 (UNAUDITED)
LARGE CAP GROWTH FUND
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
COMMON STOCKS -- 98.1%
BASIC MATERIALS -- 1.3%
Ecolab 478,605 $ 17,559
------------
CAPITAL GOODS -- 3.5%
General Electric 228,240 35,420
Honeywell International 230,300 12,134
------------
47,554
------------
COMMUNICATION SERVICES -- 11.0%
AT&T 184,925 10,402
MCI WorldCom* 581,752 26,361
Nextel Communications, Cl A* 319,000 47,292
Nokia, ADR 245,130 53,254
Vodafone, ADR 262,085 14,562
------------
151,871
------------
CONSUMER CYCLICALS -- 9.6%
Best Buy* 396,600 34,108
Home Depot 355,297 22,917
Internet Capital Group* 125,808 11,362
Kohls* 182,000 18,655
Omnicom Group 230,250 21,514
Wal-Mart Stores 440,980 24,474
------------
133,030
------------
CONSUMER STAPLES -- 5.7%
Cox Communications* 658,650 31,944
MediaOne Group* 232,450 18,828
Walgreen 1,084,080 27,915
------------
78,687
------------
ENERGY -- 2.9%
Exxon Mobil 178,517 13,891
Schlumberger 334,625 25,599
------------
39,490
------------
FINANCIALS -- 7.9%
American Express 153,285 22,830
American International Group 147,537 16,155
Bank of New York 342,990 14,255
Charles Schwab 271,500 15,425
Citigroup 209,300 12,414
Fannie Mae 218,685 12,342
Morgan Stanley Dean Witter 182,900 14,918
------------
108,339
------------
HEALTH CARE -- 13.7%
Affymetrix* 60,000 8,906
Amgen* 218,790 13,428
Bristol-Myers Squibb 223,110 12,885
Genentech* 36,500 5,548
Guidant* 493,345 29,015
Johnson & Johnson 274,455 19,229
LARGE CAP GROWTH FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
Medtronic 536,970 $ 27,620
Merck 430,190 26,726
Pfizer 909,110 33,239
Schering Plough 338,160 12,427
------------
189,023
------------
TECHNOLOGY -- 35.8%
America Online* 412,960 27,772
Applied Materials* 82,800 7,804
Automatic Data Processing 232,500 11,218
BMC Software* 271,315 13,396
Broadcom Cl A* 71,900 17,463
Brocade Communications Systems* 120,000 21,517
Cisco Systems* 875,428 67,682
Dell Computer* 351,600 18,964
eBay* 82,800 14,573
EMC* 316,780 39,597
IBM 96,350 11,369
Intel 362,290 47,800
JDS Uniphase 73,000 8,801
Lucent Technologies 234,997 14,276
Microsoft* 543,140 57,709
Motorola 105,700 15,049
Oracle Systems* 595,400 46,478
Palm* 23,500 1,055
PE Corp-PE Biosystems Group 67,300 6,494
PMC-Sierra* 41,950 8,545
Sun Microsystems* 235,860 22,101
Tellabs* 207,830 13,090
------------
492,753
------------
TRANSPORTATION -- 2.2%
Southwest Airlines 741,772 15,438
United Parcel Service 234,900 14,799
------------
30,237
------------
UTILITIES -- 4.5%
AES* 178,725 14,075
Enron 649,130 48,604
------------
62,679
------------
TOTAL COMMON STOCKS
(Cost $733,446) 1,351,222
------------
RELATED PARTY MONEY MARKET FUND -- 1.5%
First American Prime Obligations Fund (A) 20,886,519 20,886
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $20,886) 20,886
------------
TOTAL INVESTMENTS -- 99.6%
(Cost $754,332) 1,372,108
------------
OTHER ASSETS AND LIABILITIES, NET -- 0.4% (B) 5,301
------------
The accompanying notes are an integral part of the financial statements.
(12 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
LARGE CAP GROWTH FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- -------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital -- Class A ($0.0001 par value --
2 billion authorized) based on
9,425,520 outstanding shares $ 99,266
Portfolio Capital -- Class B ($0.0001 par value --
2 billion authorized) based on
1,532,262 outstanding shares 25,625
Portfolio Capital -- Class C ($0.0001 par value --
2 billion authorized) based on
145,637 outstanding shares 2,929
Portfolio Capital -- Class Y ($0.0001 par value --
2 billion authorized) based on
49,698,142 outstanding shares 541,095
Accumulated net investment loss (1,153)
Accumulated net realized gain on investments 91,871
Net unrealized appreciation of investments 617,776
------------
TOTAL NET ASSETS -- 100.0% $ 1,377,409
------------
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE -- CLASS A $ 22.55
Maximum sales charge of 5.25% (C) 1.25
------------
OFFERING PRICE PER SHARE -- CLASS A $ 23.80
------------
Net asset value and offering price per share -- Class B (D) $ 21.98
------------
Net asset value and redemption price per share -- Class C (E) $ 22.36
Maximum sales charge of 1.00% (F) 0.23
------------
Offering price per share -- Class C $ 22.59
------------
Net asset value, offering price, and redemption
price per share -- Class Y $ 22.70
------------
* 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 5% of total net
assets include the following (000):
Cash collateral received for securities on loan $406,747
Payable upon return of securities on loan $(406,747)
(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 calculated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%.
ADR--American Depositary Receipt
CI--Class
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 13)
<PAGE>
STATEMENTS OF NET ASSETS MARCH 31, 2000 (UNAUDITED)
LARGE CAP VALUE FUND
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
COMMON STOCKS -- 98.0%
BASIC MATERIALS -- 6.4%
Alcoa 502,000 $ 35,265
International Paper 548,100 23,431
Praxair 898,700 37,408
------------
96,104
------------
CAPITAL GOODS -- 5.1%
Honeywell International 815,400 42,961
Minnesota Mining & Manufacturing 372,000 32,945
------------
75,906
------------
COMMUNICATION SERVICES -- 8.5%
AT&T 662,500 37,266
Bell Atlantic 677,212 41,395
MCI WorldCom* 461,500 20,912
SBC Communications 657,726 27,624
------------
127,197
------------
CONSUMER CYCLICALS -- 6.1%
Federated Department Stores* 915,800 38,235
Ford Motor 559,200 25,688
May Department Stores 987,650 28,148
------------
92,071
------------
CONSUMER STAPLES -- 6.6%
General Mills 1,009,400 36,528
Kimberly Clark 816,600 45,730
McDonald's 423,300 15,900
------------
98,158
------------
ENERGY -- 10.3%
Exxon Mobil 530,400 41,272
Halliburton 768,000 31,488
Royal Dutch Petroleum, ADR 684,000 39,373
Texaco 779,100 41,779
------------
153,912
------------
FINANCIALS -- 30.0%
Allstate 719,800 17,140
American Express 218,900 32,602
American International Group 244,600 26,784
Associates First Capital 1,275,800 27,350
Bank of America 424,900 22,281
Bank One 471,500 16,208
Chase Manhattan 607,300 52,949
Cigna 298,600 22,619
Citigroup 575,100 34,111
Fannie Mae 659,500 37,221
Firstar 757,200 17,368
Fleet Boston Financial 1,139,001 41,574
Household International 758,500 28,302
Mellon Financial 1,074,900 31,710
Wells Fargo 981,600 40,184
------------
448,403
------------
LARGE CAP GROWTH FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
HEALTH CARE -- 8.6%
American Home Products 606,200 $ 32,507
Baxter International 642,000 40,245
Merck 244,200 15,171
Pharmacia & Upjohn 688,900 40,817
------------
128,740
------------
TECHNOLOGY -- 12.6%
Electronic Data Systems 538,400 34,559
First Data 804,800 35,612
IBM 321,856 37,979
Intel 324,800 42,853
Motorola 263,600 37,530
------------
188,533
------------
TRANSPORTATION -- 1.7%
Delta Air Lines 476,900 25,395
------------
UTILITIES -- 2.1%
Duke Power 609,300 31,988
------------
TOTAL COMMON STOCKS
(Cost $1,273,804) 1,466,407
------------
RELATED PARTY MONEY MARKET FUND -- 2.1%
First American Prime Obligations Fund (A) 30,828,105 30,828
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $30,828) 30,828
------------
TOTAL INVESTMENTS -- 100.1%
(Cost $1,304,632) 1,497,235
------------
OTHER ASSETS AND LIABILITIES, NET -- (0.1%) (B) (1,549)
------------
The accompanying notes are an integral part of the financial statements.
(14 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
LARGE CAP GROWTH FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- -------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital -- Class A ($0.0001 par value
2 billion authorized) based on
7,353,693 outstanding shares $ 124,037
Portfolio Capital -- Class B ($0.0001 par value --
2 billion authorized) based on
2,659,466 outstanding shares 60,372
Portfolio Capital -- Class C ($0.0001 par value --
2 billion authorized) based on
109,763 outstanding shares 2,541
Portfolio Capital -- Class Y ($0.0001 par value --
2 billion authorized) based on
60,954,522 outstanding shares 1,078,217
Undistributed net investment income 359
Accumulated net realized gain on investments 37,557
Net unrealized appreciation of investments 192,603
------------
NET ASSETS -- 100.0% $ 1,495,686
------------
Net asset value and redemption price per share -- Class A $ 21.01
Maximum sales charge of 5.25% (C) 1.16
------------
Offering price per share -- Class A $ 22.17
------------
Net asset value and offering price per share -- Class B (D) $ 20.73
------------
Net asset value and redemption price per share -- Class C (E) $ 20.95
Maximum sales charge of 1.00% (F) 0.21
------------
Offering price per share -- Class C $ 21.16
------------
Net asset value, offering price, and redemption
price per share -- Class Y $ 21.06
------------
* 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 $240,127
Payable upon return of securities on loan $(240,127)
(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
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 15)
<PAGE>
STATEMENTS OF OPERATIONS for the six months ended March 31, 2000 (unaudited) in
thousands
<TABLE>
<CAPTION>
BALANCED EQUITY INCOME EQUITY INDEX
FUND FUND FUND
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 14+ $ 520+ $ 597+
Dividends 8,787 4,321 9,387
- -------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 8,801 4,841 9,984
=============================================================================================================
EXPENSES:
Investment advisory fees 1,557 1,261 5,596
Less: Waiver of investment advisory fees (286) (244) (4,324)
Administrator fees 242 196 870
Transfer agent fees 155 44 240
Custodian fees 67 54 240
Directors' fees 4 3 16
Registration fees 15 11 57
Professional fees 4 4 16
Printing 15 13 56
Distribution fees - Class A 81 25 159
Distribution fees - Class B 290 56 567
Distribution fees - Class C 7 11 119
Other 9 9 34
- -------------------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 2,160 1,443 3,646
=============================================================================================================
Investment income (loss) - net 6,641 3,398 6,338
- -------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS
ON INVESTMENTS - NET:
Net realized gain on investments 3,764 23,731 2,182
Net realized gain on futures contracts -- -- 911
Net change in unrealized appreciation/depreciation
of investments 229 (17,009) 236,036
- -------------------------------------------------------------------------------------------------------------
NET GAIN ON INVESTMENTS 3,993 6,722 239,129
=============================================================================================================
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 10,634 $ 10,120 $245,467
=============================================================================================================
</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 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
<TABLE>
<CAPTION>
LARGE CAP LARGE CAP
GROWTH FUND VALUE FUND
- ------------------------------
<S> <C>
$ 914+ $ 1,159+
3,125 12,123
- ------------------------------
4,039 13,282
==============================
4,166 5,195
(519) (805)
647 808
154 358
179 223
12 14
42 45
12 15
42 52
238 208
131 296
10 9
29 37
- ------------------------------
5,143 6,455
==============================
(1,104) 6,827
- ------------------------------
95,462 38,991
-- --
232,991 6,926
- ------------------------------
328,453 45,917
==============================
$327,349 $ 52,744
==============================
</TABLE>
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 17)
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS in thousands
<TABLE>
<CAPTION>
BALANCED EQUITY EQUITY
FUND INCOME FUND INDEX FUND
- ------------------------------------------------------------------------------------------------------------------------------------
10/1/99 10/1/98 10/1/99 10/1/98 10/1/99 10/1/98
to to to to to to
3/31/00 9/30/99 3/31/00 9/30/99 3/31/00 9/30/99
- ------------------------------------------------------------------------------------------------------------------------------------
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Investment income (loss) - net $ 6,641 $ 15,560 $ 3,398 $ 9,432 $ 6,338 $ 14,804
Net realized gain on investments 3,764 51,628 23,731 26,002 2,182 30,503
Net realized gain on futures contracts -- -- -- -- 911 10,534
Net change in unrealized appreciation/depreciation
of investments 229 (1,078) (17,009) 2,697 236,036 256,876
Net change in unrealized appreciation/depreciation
of futures contracts -- -- -- -- -- 68
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 10,634 66,110 10,120 38,131 245,467 312,785
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (940) (2,106) (174) (334) (419) (758)
Class B (639) (1,271) (62) (162) (36) (193)
Class C (16) (9) (12) (9) (10) (16)
Class Y (5,067) (12,245) (3,201) (9,143) (6,068) (13,914)
Net realized gain on investments:
Class A (6,336) (8,756) (1,376) (662) (3,056) (1,099)
Class B (5,610) (6,690) (762) (506) (2,748) (996)
Class C (139) -- (129) -- (520) --
Class Y (30,348) (51,648) (23,576) (20,399) (32,195) (21,802)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (49,095) (82,725) (29,292) (31,215) (45,052) (38,778)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS(1):
Class A
Proceeds from sales 3,688 14,035 3,885 12,345 30,485 73,519
Reinvestment of distributions 7,181 10,398 1,178 748 3,355 1,766
Payments for redemptions (14,568) (30,490) (3,481) (4,820) (20,126) (22,600)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class A
transactions (3,699) (6,057) 1,582 8,273 13,714 52,685
- ------------------------------------------------------------------------------------------------------------------------------------
Class B
Proceeds from sales 2,357 7,363 1,299 3,746 20,651 51,649
Reinvestment of distributions 6,137 7,765 782 628 2,721 1,165
Payments for redemptions (10,337) (11,704) (1,998) (2,006) (11,585) (8,302)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease (increase) in net assets from Class B
transactions (1,843) 3,424 83 2,368 11,787 44,512
- ------------------------------------------------------------------------------------------------------------------------------------
Class C
Proceeds from sales 371 1,431 990 1,825 12,418 18,007
Reinvestment of distributions 154 9 136 8 554 15
Payment for redemptions (319) (1) (257) (11) (3,311) (611)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from Class C transactions 206 1,439 869 1,822 9,661 17,411
- ------------------------------------------------------------------------------------------------------------------------------------
Class Y
Proceeds from sales 55,464 96,438 23,732 58,353 333,643 451,693
Shares issued in connection with the acquisition
of Piper Common Trust Fund Assets -- -- -- -- -- --
Shares issued in connection with the acquisition of
Santa Monica Common Trust Fund Assets -- -- -- -- -- --
Reinvestment of distributions 33,886 60,180 3,474 3,371 32,834 32,110
Payments for redemptions (131,646) (249,834) (69,170) (77,863) (262,796) (526,652)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease (increase) in net assets from Class Y
transactions (42,296) (93,216) (41,964) (16,139) 103,681 (42,849)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share
transactions (47,632) (94,410) (39,430) (3,676) 138,843 71,759
- ------------------------------------------------------------------------------------------------------------------------------------
Total decrease (increase) in net assets (86,093) (111,025) (58,602) 3,240 339,258 345,766
NET ASSETS AT BEGINNING OF PERIOD 481,993 593,018 382,416 379,176 1,432,426 1,086,660
====================================================================================================================================
NET ASSETS AT END OF PERIOD (2) $ 395,900 $ 481,993 $ 323,814 $ 382,416 $1,771,684 $1,432,426
====================================================================================================================================
</TABLE>
The accompanying notes are an integral part of the financial statements.
(18 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
<TABLE>
<CAPTION>
LARGE CAP LARGE CAP
GROWTH FUND VALUE FUND
- --------------------------------------------------
10/1/99 10/1/98 10/1/99 10/1/98
to to to to
3/31/00 9/30/99 3/31/00 9/30/99
- --------------------------------------------------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
$ (1,104) $ 1,357 $ 6,827 $ 16,531
95,462 156,209 38,991 207,906
-- -- -- --
232,991 129,481 6,926 93,721
-- -- -- --
- --------------------------------------------------
327,349 287,047 52,744 318,158
- --------------------------------------------------
-- (282) (567) (1,621)
-- -- (47) (186)
-- -- (2) (1)
(49) (2,625) (5,852) (15,248)
(25,025) (16,050) (20,882) (27,729)
(3,205) (1,316) (7,299) (9,199)
(192) -- (187) -- (1)See note 4 in the notes to
(130,098) (77,627) (156,215) (202,092) the financial statements for
- -------------------------------------------------- additional information.
(158,569) (97,900) (191,051) (256,076) (2)Includes undistributed net
- -------------------------------------------------- investment income (000) of
$274 and $295 for Balanced
Fund, $147 and $198 for
21,716 54,798 13,429 31,078 Equity Income Fund, $125 and
23,078 15,252 19,876 24,964 $320 for Equity Index Fund,
(26,961) (74,400) (38,109) (56,697) net investment loss of
- -------------------------------------------------- $(1,153) and $0 for Large
Cap Growth Fund, and $359
17,833 (4,350) (4,804) (655) and $0 for Large Cap Value
- -------------------------------------------------- Fund, at March 31, 2000, and
September 30, 1999,
10,140 6,268 2,881 5,587 respectively.
3,127 1,295 7,240 9,240
(2,328) (2,449) (10,290) (11,602)
- --------------------------------------------------
10,939 5,114 (169) 3,225
- --------------------------------------------------
1,972 988 972 1,504
192 -- 183 1
(203) (19) (112) (7)
- --------------------------------------------------
1,961 969 1,043 1,498
- --------------------------------------------------
170,378 177,975 255,945 298,298
-- 9,808 -- --
10,581 -- -- --
43,249 21,807 97,335 121,404
(89,257) (189,793) (298,924) (382,918)
- --------------------------------------------------
134,951 19,797 54,356 36,784
- --------------------------------------------------
165,684 21,530 50,426 40,852
- --------------------------------------------------
334,464 210,677 (87,881) 102,934
1,042,945 832,268 1,583,567 1,480,633
==================================================
$1,377,409 $1,042,945 $1,495,686 $1,583,567
==================================================
</TABLE>
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 19)
<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
2000* (unaudited) $ 13.46 $ 0.18 $ 0.21 $ (0.18) $ (1.25)
1999 13.98 0.38 1.07 (0.38) (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)
Class B
2000* (unaudited) $ 13.40 $ 0.14 $ 0.20 $ (0.14) $ (1.25)
1999 13.93 0.28 1.06 (0.28) (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)
Class C
2000* (unaudited) $ 13.45 $ 0.15 $ 0.20 $ (0.14) $ (1.25)
1999(1) 13.69 $ 0.23 (0.25) (0.22) --
Class Y
2000* (unaudited) $ 13.50 $ 0.20 $ 0.21 $ (0.20) $ (1.25)
1999 14.01 0.41 1.08 (0.41) (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)
- ---------------------------------------------------------------------------------------------
EQUITY INCOME FUND
Class A
2000* (unaudited) $ 15.94 $ 0.19 $ 0.27 $ (0.14) $ (1.10)
1999 15.70 0.36 1.15 (0.37) (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) --
Class B
2000* (unaudited) $ 15.90 $ 0.12 $ 0.28 $ (0.09) $ (1.10)
1999 15.65 0.24 1.16 (0.25) (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) --
Class C
2000* (unaudited) $ 15.93 $ 0.13 $ 0.27 $ (0.09) $ (1.10)
1999(1) 16.62 0.21 (0.70) (0.20) --
Class Y
2000* (unaudited) $ 16.00 $ 0.20 $ 0.27 $ (0.15) $ (1.10)
1999 15.74 0.40 1.17 (0.41) (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) --
- ---------------------------------------------------------------------------------------------
EQUITY INDEX FUND
Class A
2000* (unaudited) $ 25.52 $ 0.09 $ 4.10 $ (0.09) $ (0.68)
1999 20.61 0.21 5.36 (0.22) (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)
Class B
2000* (unaudited) $ 25.34 $ 0.01 $ 4.04 $ (0.01) $ (0.68)
1999 20.49 0.05 5.30 (0.06) (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)
Class C
2000* (unaudited) $ 25.48 $ 0.01 $ 4.08 $ (0.01) $ (0.68)
1999(1) 25.35 0.06 0.13 (0.06) --
Class Y
2000* (unaudited) $ 25.51 $ 0.12 $ 4.10 $ (0.12) $ (0.68)
1999 20.60 0.28 5.35 (0.28) (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)
- ---------------------------------------------------------------------------------------------
</TABLE>
+Returns are for the period indicated and have not been annualized.
*For the six month period ended March 31, 2000. All ratios for the period
have been annualized.
(A) Excluding sales charges.
(1) Class C shares have been offered since February 1, 1999. All ratios for the
period have been annualized.
The accompanying notes are an integral part of the financial statements.
(20 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
<TABLE>
<CAPTION>
RATIO OF RATIO OF NET
RATIO OF NET EXPENSES TO INVESTMENT INCOME
NET ASSET RATIO OF INVESTMENT AVERAGE TO AVERAGE
VALUE NET ASSETS EXPENSES TO INCOME TO NET ASSETS NET ASSETS PORTFOLIO
END OF TOTAL END OF AVERAGE AVERAGE (EXCLUDING (EXCLUDING TURNOVER
PERIOD RETURN (A) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 12.42 2.79%+ $ 60,424 1.05% 2.90% 1.18% 2.77% 27%
13.46 10.75 69,753 1.05 2.69 1.16 2.58 77
13.98 0.72 78,269 1.05 2.82 1.15 2.72 103
15.41 25.80 32,309 1.05 2.74 1.13 2.66 84
13.14 15.61 20,927 1.05 3.05 1.14 2.96 73
12.12 20.57 15,288 0.99 3.41 1.19 3.21 77
$ 12.35 2.33%+ $ 53,757 1.80% 2.16% 1.93% 2.03% 27%
13.40 9.94 60,623 1.80 1.94 1.91 1.83 77
13.93 (0.02) 59,323 1.80 2.02 1.90 1.92 103
15.36 24.93 43,707 1.80 1.99 1.88 1.91 84
13.10 14.78 15,542 1.80 2.32 1.89 2.23 73
12.09 19.58 3,120 1.79 2.60 1.94 2.45 77
$ 12.41 2.40%+ $ 1,476 1.80% 2.15% 1.93% 2.02% 27%
13.45 (0.21)+ 1,388 1.81 2.05 1.91 1.95 77
$ 12.46 2.91%+ $ 280,243 0.80% 3.15% 0.93% 3.02% 27%
13.50 11.07 350,229 0.80 2.93 0.91 2.82 77
14.01 1.03 455,426 0.80 3.01 0.90 2.91 103
15.43 26.17 418,087 0.80 2.99 0.88 2.91 84
13.15 15.89 332,786 0.80 3.31 0.89 3.22 73
12.13 20.89 192,145 0.79 3.61 0.94 3.46 77
- ----------------------------------------------------------------------------------------------------------------------
$ 15.16 2.46%+ $ 19,498 1.00% 2.33% 1.13% 2.20% 21%
15.94 9.74 18,970 1.00 2.01 1.13 1.88 35
15.70 8.38 11,018 1.00 2.58 1.12 2.46 14
15.69 31.16 7,276 1.00 2.96 1.17 2.79 39
12.65 16.41 2,581 1.00 3.25 1.20 3.05 23
11.24 18.06 1,995 0.92 3.91 1.31 3.52 23
$ 15.11 2.07%+ $ 10,415 1.75% 1.59% 1.88% 1.46% 21%
15.90 9.10 10,971 1.75 1.34 1.88 1.21 35
15.65 7.77 8,570 1.75 1.81 1.87 1.69 14
15.62 30.06 6,619 1.75 2.19 1.92 2.02 39
12.61 15.66 3,770 1.75 2.49 1.95 2.29 23
11.20 17.10 1,233 1.75 3.05 2.06 2.74 23
$ 15.14 2.08%+ $ 2,454 1.75% 1.50% 1.89% 1.36% 21%
15.93 (3.02)+ 1,700 1.76 0.65 1.88 0.53 35
$ 15.22 2.57%+ $ 291,447 0.75% 2.64% 0.88% 2.51% 21%
16.00 10.10 350,775 0.75 2.38 0.88 2.25 35
15.74 8.85 359,588 0.75 2.81 0.87 2.69 14
15.70 31.45 369,919 0.75 3.12 0.92 2.95 39
12.66 16.79 64,590 0.75 3.50 0.95 3.30 23
11.24 18.24 52,126 0.75 4.11 1.06 3.80 23
- ----------------------------------------------------------------------------------------------------------------------
$ 28.94 16.59%+ $ 140,010 0.60% 0.65% 1.14% 0.11% 10%
25.52 27.30 110,439 0.60 0.85 1.14 0.31 7
20.61 8.50 46,010 0.60 1.11 1.13 0.58 14
20.76 39.47 15,977 0.60 1.36 1.13 0.83 8
15.49 19.75 6,221 0.60 1.87 1.15 1.32 10
13.35 28.90 2,140 0.57 2.16 1.20 1.53 9
$ 28.70 16.12%+ $ 124,742 1.35% (0.10)% 1.89% (0.64)% 10%
25.34 26.38 99,054 1.35 0.10 1.89 (0.44) 7
20.49 7.66 44,122 1.35 0.37 1.88 (0.16) 14
20.67 38.45 23,733 1.35 0.61 1.88 0.08 8
15.43 18.95 8,252 1.35 1.11 1.90 0.56 10
13.30 27.87 1,197 1.35 1.34 1.95 0.74 9
$ 28.88 16.20%+ $ 29,347 1.35% (0.09)% 1.89% (0.63)% 10%
25.48 0.76+ 16,861 1.35 0.07 1.89 (0.47) 7
$ 28.93 16.74%+ $1,477,585 0.35% 0.90% 0.89% 0.36% 10%
25.51 27.61 1,206,072 0.35 1.11 0.89 0.57 7
20.60 8.82 996,528 0.35 1.36 0.88 0.83 14
20.74 39.85 557,258 0.35 1.62 0.88 1.09 8
15.47 19.98 348,539 0.35 2.14 0.90 1.59 10
13.34 29.17 218,932 0.35 2.41 0.95 1.81 9
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 21)
<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>
LARGE CAP GROWTH FUND
Class A
2000* (unaudited) $ 19.75 $ (0.04) $ 5.82 $ -- $ (2.98)
1999 16.25 0.02 5.39 (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) --
Class B
2000* (unaudited) $ 19.38 $ (0.17) $ 5.75 $ -- $ (2.98)
1999 16.06 0.07 5.13 -- (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) --
Class C
2000* (unaudited) $ 19.67 $ (0.09) $ 5.76 $ -- $ (2.98)
1999(1) 18.56 0.01 1.11 (0.01) --
Class Y
2000* (unaudited) $ 19.84 $ 0.01 $ 5.83 $ -- $ (2.98)
1999 16.30 0.02 5.46 (0.06) (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) --
- ------------------------------------------------------------------------------------------------
LARGE CAP VALUE FUND
Class A
2000* (unaudited) $ 23.12 $ 0.07 $ 0.64 $ (0.07) $ (2.75)
1999 22.39 0.19 4.44 (0.20) (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)
Class B
2000* (unaudited) $ 22.87 $ 0.02 $ 0.61 $ (0.02) $ (2.75)
1999 22.21 0.07 4.36 (0.07) (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)
Class C
2000* (unaudited) $ 23.09 $ 0.02 $ 0.61 $ (0.02) $ (2.75)
1999(1) 22.79 0.08 0.30 (0.08) --
Class Y
2000* (unaudited) $ 23.17 $ 0.11 $ 0.63 $ (0.10) $ (2.75)
1999 22.42 0.25 4.46 (0.26) (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)
- ------------------------------------------------------------------------------------------------
</TABLE>
+Returns are for the period indicated and have not been annualized.
*For the six month period ended March 31, 2000. All ratios for the period
have been annualized.
(A) Excluding sales charges.
(1) Class C shares have been offered since February 1, 1999. All ratios for the
period have been annualized.
The accompanying notes are an integral part of the financial statements.
(22 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
<TABLE>
<CAPTION>
RATIO OF RATIO OF NET
RATIO OF NET EXPENSES TO INVESTMENT INCOME
NET ASSET RATIO OF INVESTMENT AVERAGE (LOSS) TO AVERAGE
VALUE NET ASSETS EXPENSES TO INCOME (LOSS) NET ASSETS NET ASSETS PORTFOLIO
END OF TOTAL END OF AVERAGE TO AVERAGE (EXCLUDING (EXCLUDING TURNOVER
PERIOD RETURN (A) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 22.55 31.58%+ $ 212,537 1.05% (0.37)% 1.14% (0.46)% 28%
19.75 36.00 168,153 1.05 (0.05) 1.14 (0.14) 57
16.25 0.61 140,948 1.05 0.56 1.11 0.50 38
17.63 32.69 12,017 1.05 0.57 1.14 0.48 34
13.63 17.38 5,318 1.04 1.13 1.17 1.00 21
11.75 31.21 2,710 0.92 1.52 1.26 1.18 28
$ 21.98 31.11%+ $ 33,676 1.80% (1.12)% 1.89% (1.21)% 28%
19.38 34.99 19,011 1.80 (0.83) 1.89 (0.92) 57
16.06 0.09 11,177 1.80 (0.20) 1.86 (0.26) 38
17.47 31.42 9,487 1.80 (0.18) 1.89 (0.27) 34
13.57 16.41 5,775 1.79 0.36 1.92 0.23 21
11.73 30.29 819 1.75 0.58 2.01 0.32 28
$ 22.36 31.11%+ $ 3,256 1.80% (1.12)% 1.89% (1.21)% 28%
19.67 6.04+ 962 1.80 (1.09) 1.89 (1.18) 57
$ 22.70 31.76%+ $1,127,940 0.80% (0.12)% 0.89% (0.21)% 28%
19.84 36.36 854,819 0.80 0.20 0.89 0.11 57
16.30 1.07 680,143 0.80 0.82 0.86 0.76 38
17.64 32.75 681,151 0.80 0.77 0.89 0.68 34
13.66 17.58 225,900 0.79 1.39 0.92 1.26 21
11.78 31.57 132,854 0.75 1.69 1.01 1.43 28
- -----------------------------------------------------------------------------------------------------------------------
$ 21.01 2.49%+ $ 154,490 1.05% 0.74% 1.16% 0.63% 30%
23.12 21.93 177,251 1.05 0.82 1.15 0.72 61
22.39 (8.77) 170,529 1.05 1.21 1.13 1.13 74
28.74 38.82 50,381 1.05 1.14 1.14 1.05 57
22.59 23.90 22,965 1.05 1.64 1.13 1.56 40
19.57 25.26 13,076 1.00 1.89 1.19 1.70 52
$ 20.73 2.10%+ $ 55,125 1.80% (0.11)% 1.91% (0.22)% 30%
22.87 21.07 61,711 1.80 0.07 1.90 (0.03) 61
22.21 (9.37) 56,259 1.80 0.41 1.88 0.33 74
28.55 37.71 53,420 1.80 0.39 1.89 0.30 57
22.50 23.08 23,316 1.80 0.89 1.88 0.81 40
19.49 24.20 7,051 1.79 1.10 1.94 0.95 52
$ 20.95 2.10%+ $ 2,299 1.80% (0.01)% 1.91% (0.12)% 30%
23.09 1.65+ 1,398 1.80 0.00 1.90 (0.10) 61
$ 21.06 2.61%+ $1,283,772 0.80% 0.99% 0.91% 0.88% 30%
23.17 22.28 1,343,207 0.80 1.07 0.90 0.97 61
22.42 (8.47) 1,253,845 0.80 1.40 0.88 1.32 74
28.75 39.13 1,095,262 0.80 1.39 0.89 1.30 57
22.60 24.32 471,206 0.80 1.90 0.88 1.82 40
19.56 25.50 312,559 0.79 2.10 0.94 1.95 52
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 23)
<PAGE>
STATEMENTS OF NET ASSETS MARCH 31, 2000 (UNAUDITED)
MID CAP GROWTH FUND
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
COMMON STOCKS -- 95.9%
CAPITAL GOODS -- 3.5%
Flextronics International 127,700 $ 8,995
Mettler-Toledo International* 40,300 1,650
Sanmina 128,000 8,648
Symbol Technologies* 38,300 3,153
------------
22,446
------------
COMMUNICATION SERVICES -- 4.0%
Allegiance Telecommunications* 46,250 3,729
Broadwing 67,700 2,518
Covad Communications Group* 90,900 6,590
Net2phone* 29,200 1,726
NTL 34,843 3,234
Time Warner Telecommunications, Cl A* 96,700 7,688
------------
25,485
------------
CONSUMER CYCLICALS -- 6.7%
Best Buy* 59,500 5,117
Circuit City Stores 71,300 4,340
CMG Information Services* 54,700 6,198
Crown Castle International* 91,000 3,447
Drugstore.com* 167,000 2,202
Harley-Davidson 58,400 4,635
Interpublic Group 53,000 2,504
Kohls* 20,600 2,111
NCO Group* 76,900 2,456
Ross Stores 88,100 2,120
St Assembley Test Service, ADR* 66,600 3,230
ValueVision International* 62,700 2,594
Young & Rubicam 30,400 1,429
------------
42,383
------------
CONSUMER STAPLES -- 4.3%
AMFM* 82,700 5,138
Homegrocer.com* 123,600 1,282
Interim Services* 144,300 2,679
Metro Goldwyn Mayer* 98,800 2,513
Outback Steakhouse* 63,600 2,039
Robert Half International* 88,600 4,203
TV Guide* 117,900 5,667
Univision Communications* 33,200 3,752
------------
27,273
------------
ENERGY -- 9.0%
BJ Services* 118,800 8,776
Cooper Cameron* 88,200 5,898
Diamond Offshore Drilling 139,200 5,559
Ensco International 136,600 4,935
Nabors Industries* 179,100 6,951
R&B Falcon* 317,600 6,253
Santa Fe International 44,100 1,632
Smith International* 58,800 4,557
Transocean Sedco Forex 134,600 6,907
Weatherford International* 100,100 5,900
------------
57,368
------------
MID CAP GROWTH FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
FINANCIALS -- 2.7%
A.G. Edwards & Sons 52,100 $ 2,084
E*TRADE Group* 130,600 3,934
Frontline Capital* 35,600 1,566
TCF Financial 182,500 4,346
Waddell & Reed Financial, Cl A 115,600 4,891
------------
16,821
------------
HEALTH CARE -- 6.2%
Enzon* 68,800 2,593
Forest Laboratories* 66,600 5,628
Immunex* 41,700 2,645
MedImmune* 20,100 3,500
QLT Phototherapeutics 62,400 3,448
Quest Diagnostic* 84,100 3,343
Sepracor* 37,800 2,752
Tenet Healthcare* 193,200 4,444
Teva Pharmaceutical Industries, ADR 169,300 6,317
Viropharma* 41,400 2,538
Watson Pharmaceuticals* 51,800 2,056
------------
39,264
------------
TECHNOLOGY -- 58.1%
724 Solutions* 26,600 3,312
Active Software* 55,300 3,518
ADC Telecommunications* 166,000 8,943
Altera* 26,700 2,383
Analog Devices* 119,300 9,611
Applied Micro Circuits* 29,200 4,382
Appnet* 120,300 5,654
Ariba* 13,100 2,746
Art Technology* 33,700 2,214
Ask Jeeves* 51,400 3,142
Aspect Communications* 80,300 2,976
Atmel* 90,600 4,677
BEA Systems* 98,900 7,257
Broadcom, Cl A* 45,900 11,148
Broadvision* 49,700 2,230
Brocade Communications Systems* 16,000 2,869
Cabletron Systems* 35,600 1,043
Calpine* 31,800 2,989
Celestica* 132,600 7,036
Chartered Semiconductor Manufacturing* 91,900 8,662
Ciena* 42,700 5,386
Citrix Systems* 79,200 5,247
Clarent* 21,900 1,975
Commerce One* 9,400 1,403
Computer Sciences* 36,000 2,848
Comverse Technology* 35,100 6,634
Copper Mountain Networks* 48,800 3,999
Cree Research* 33,700 3,804
Digex* 61,700 6,845
E-Tek Dynamics* 34,300 8,069
Efficient Networks* 19,200 2,990
Entrust Technologies* 32,700 2,782
Exodus Communications* 62,400 8,767
Extreme Networks* 8,800 695
I2 Technologies* 29,300 3,578
Infospace.com* 8,700 1,265
Intersil Holding* 63,800 3,298
ISS Group* 35,500 4,136
The accompanying notes are an integral part of the financial statements.
(24 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
MID CAP GROWTH FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
JDS Uniphase* 131,400 $ 15,842
Kopin* 25,500 1,753
KLA Tencor* 65,600 5,527
Kulicke & Soffa Industries* 22,100 1,416
Liberate Technologies* 66,600 4,179
Maxim Integrated Products* 150,000 10,659
Mercury Interactive* 84,500 6,697
Network Solutions* 64,500 9,914
Novell* 65,600 1,878
PE Corp-PE Biosystems Group 27,500 2,654
Paychex 157,950 8,273
Peregrine Systems* 138,100 9,261
Psinet* 35,200 1,197
Purchasepro.com* 17,700 1,283
QLogic* 37,200 5,041
Quest Software* 14,800 1,669
Rational Software* 45,600 3,488
Razorfish* 147,400 4,053
Research In Motion* 54,200 5,772
RF Micro Devices* 44,800 6,020
S1* 36,500 3,127
Safeguard Scientifics* 74,200 5,217
Sapient* 57,500 4,823
Scientific-Atlanta 125,000 7,930
SDL* 14,800 3,151
Selectica* 18,000 1,588
Sybase* 284,800 5,785
Symantec* 51,500 3,869
Teradyne* 90,500 7,444
TSI International Software* 16,800 1,395
Turnstone Systems* 14,100 1,621
USInternetworking* 97,650 3,784
Utstarcom* 45,600 3,560
Varian Semiconductor Equipment* 54,700 3,480
Veritas Software* 66,550 8,718
VerticalNet* 19,300 2,625
Viant* 87,900 2,945
Viasystems* 125,500 1,945
Vignette* 42,300 6,779
Visual Networks* 33,900 1,924
Vitria Technology* 8,800 887
Waters* 38,500 3,667
Xilinx* 64,800 5,366
------------
368,719
------------
UTILITIES -- 1.4%
Calpine* 31,800 2,989
Kinder Morgan 165,800 5,720
------------
8,709
------------
TOTAL COMMON STOCKS
(Cost $407,394) 608,468
------------
MID CAP GROWTH FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
RELATED PARTY MONEY MARKET FUND -- 5.3%
First American Prime Obligations Fund (A) 33,831,731 $ 33,832
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $33,832) 33,832
------------
TOTAL INVESTMENTS -- 101.2%
(Cost $441,226) 642,300
------------
OTHER ASSETS AND LIABILITIES, NET -- (1.2%) (B) (7,828)
------------
NET ASSETS:
Portfolio Capital -- Class A ($0.0001 par value --
2 billion authorized) based on
14,806,451 outstanding shares 64,431
Portfolio Capital -- Class B ($0.0001 par value --
2 billion authorized) based on
140,976 outstanding shares 2,297
Portfolio Capital -- Class C ($0.0001 par value --
2 billion authorized) based on
120,000 outstanding shares 1,831
Portfolio Capital -- Class Y ($0.0001 par value --
2 billion authorized) based on
18,550,463 outstanding shares 224,134
Accumulated net investment loss (1,621)
Accumulated net realized gain on investments 142,326
Net unrealized appreciation of investments 201,074
------------
TOTAL NET ASSETS -- 100.0% $ 634,472
------------
Net asset value and redemption price per share -- Class A $ 18.75
Maximum sales charge of 5.25% (C) 1.04
------------
Offering price per share -- Class A $ 19.79
------------
Net asset value and offering price per share -- Class B (D) $ 18.46
------------
Net asset value and redemption price per share -- Class C (E) $ 18.55
Maximum sales charge of 1.00% (F) 0.19
------------
Offering price per share -- Class C $ 18.74
------------
Net asset value, offering price, and redemption
price per share -- Class Y $ 18.98
------------
* 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 $260,589
Payable upon return of securities on loan $(260,589)
(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 calculated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%.
ADR--American Depositary Receipt
Cl--Class
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 25)
<PAGE>
STATEMENTS OF NET ASSETS MARCH 31, 2000 (UNAUDITED)
MID CAP VALUE FUND
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
COMMON STOCKS -- 95.9%
BASIC MATERIALS -- 11.5%
Bemis 121,800 $ 4,491
Georgia Pacific 60,400 2,390
Millennium Chemicals 165,900 3,318
Nucor 73,100 3,655
PPG Industries 92,000 4,813
Rohm & Haas 146,800 6,551
Southdown 108,300 6,390
Weyerhaeuser 41,900 2,388
------------
33,996
------------
CAPITAL GOODS -- 7.7%
Deere 100,300 3,811
Eaton 38,800 3,027
General Dynamics 63,100 3,139
Kemet* 60,100 3,801
Parker Hannifin 76,200 3,148
Republic Services, Cl A* 257,100 2,812
Textron 47,900 2,916
------------
22,654
------------
COMMUNICATION SERVICES -- 0.4%
United States Cellular* 17,300 1,228
------------
CONSUMER CYCLICALS -- 8.7%
Convergys* 106,900 4,129
Delphi Automotive Systems 306,700 4,907
Federated Department Stores* 112,900 4,714
Kmart* 466,200 4,516
Masco 210,200 4,309
Nike, Cl B 73,700 2,920
------------
25,495
------------
CONSUMER STAPLES -- 8.1%
Adelphia Communications, Cl A* 97,000 4,753
Cardinal Health 114,900 5,271
General Mills 131,700 4,766
Pepsi Bottling Group 259,000 5,180
Sysco 108,000 3,854
------------
23,824
------------
ENERGY -- 10.7%
Anadarko Petroleum 140,800 5,447
Apache 108,900 5,418
Burlington Resources 125,900 4,658
Halliburton 129,300 5,301
Nabors Industries* 54,000 2,096
Santa Fe International 124,100 4,592
Transocean Sedco Forex 74,700 3,833
------------
31,345
------------
MID CAP VALUE FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
FINANCIALS -- 18.7%
AMBAC 53,100 $ 2,675
Amsouth Bancorp 272,703 4,074
Associates First Capital 104,900 2,249
Charter One Financial 141,700 2,976
Chubb 17,000 1,149
Firstar 203,200 4,661
Franklin Resources 123,900 4,143
Golden West Financial 102,200 3,187
Heller Financial 179,300 4,146
John Hancock Financial Services* 104,200 1,882
Lehman Brothers Holdings 52,600 5,102
Marshall & Ilsley 57,200 3,303
MGIC Investment 96,500 4,210
St. Paul Companies 39,200 1,338
U.S. Trust 13,500 2,552
UnionBanCal 162,500 4,479
Zions Bancorp 71,000 2,955
------------
55,081
------------
HEALTH CARE -- 3.5%
Bausch & Lomb 67,000 3,497
Becton Dickinson 139,700 3,676
Wellpoint Health Networks* 45,800 3,200
------------
10,373
------------
TECHNOLOGY -- 16.1%
American Mobile Satellite* 17,200 413
3Com* 43,000 2,392
Cypress Semiconductor* 83,700 4,128
Fairchild Semiconductor, Cl A* 95,400 3,482
Harris 107,900 3,729
Intersil Holding* 23,900 1,235
J.D. Edwards & Company* 115,900 3,774
Legato Systems* 77,700 3,467
Micron Technology* 29,000 3,654
Parametric Technology* 196,900 4,147
SunGard Data Systems* 165,700 6,255
Sybase* 142,000 2,884
Unisys* 57,300 1,461
W.W. Grainger 116,000 6,293
------------
47,314
------------
TRANSPORTATION -- 2.8%
CNF Transportation 119,300 3,311
Southwest Airlines 232,800 4,845
------------
8,156
------------
UTILITIES -- 7.7%
El Paso Energy 120,700 4,873
Kinder Morgan 221,500 7,642
Pinnacle West Capital 190,100 5,359
Reliant Energy 198,700 4,657
------------
22,531
------------
TOTAL COMMON STOCKS
(Cost $260,998) 281,997
------------
The accompanying notes are an integral part of the financial statements.
(26 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
MID CAP VALUE FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
RELATED PARTY MONEY MARKET FUND -- 2.9%
First American Prime Obligations Fund (A) 8,622,722 8,623
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $8,623) 8,623
------------
TOTAL INVESTMENTS -- 98.8%
(Cost $269,621) 290,620
------------
OTHER ASSETS AND LIABILITIES, NET -- 1.2% (B) 3,511
------------
NET ASSETS:
Portfolio Capital -- Class A ($0.0001 par value --
2 billion authorized) based on
1,056,001 outstanding shares $ 25,154
Portfolio Capital -- Class B ($0.0001 par value --
2 billion authorized) based on
1,011,461 outstanding shares 27,878
Portfolio Capital -- Class C ($0.0001 par value --
2 billion authorized) based on
41,095 outstanding shares 535
Portfolio Capital -- Class Y ($0.0001 par value --
2 billion authorized) based on
19,968,768 outstanding shares 390,619
Undistributed net investment income 47
Accumulated net realized loss on investments (171,101)
Net unrealized appreciation of investments 20,999
------------
NET ASSETS -- 100.0% $ 294,131
------------
Net asset value and redemption price per share -- Class A $ 13.30
Maximum sales charge of 5.25% (C) 0.74
------------
Offering price per share -- Class A $ 14.04
------------
Net asset value and offering price per share -- Class B (D) $ 13.00
------------
Net asset value and redemption price per share -- Class C (E) $ 13.26
Maximum sales charge of 1.00% (F) 0.13
------------
Offering price per share -- Class C $ 13.39
------------
Net asset value, offering price, and redemption
price per share -- Class Y $ 13.35
------------
* 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 $97,644
Payable upon return of securities on loan $(97,644)
(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 calculated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%.
AMBAC--American Municipal Bond Assurance Corporation
Cl--Class
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 27)
<PAGE>
STATEMENTS OF OPERATIONS for the six months ended March 31, 2000 (unaudited) in
thousands
<TABLE>
<CAPTION>
MID CAP MID CAP
GROWTH FUND VALUE FUND
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME:
Interest $ 826+ $ 669+
Dividends 237 1,791
- ------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 1,063 2,460
================================================================================================
EXPENSES:
Investment advisory fees 1,855 1,050
Less: Waiver of investment advisory fees (69) (91)
Administrator fees 288 163
Transfer agent fees 175 150
Custodian fees 80 45
Directors' fees 5 3
Registration fees 16 9
Professional fees 6 3
Printing 18 11
Distribution fees - Class A 287 20
Distribution fees - Class B 6 76
Distribution fees - Class C 6 2
Other 11 8
- ------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 2,684 1,449
================================================================================================
Investment income (loss) - net (1,621) 1,011
- ------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS (LOSSES)
ON INVESTMENTS - NET:
Net realized gain (loss) on investments 157,400 (73,584)
Net change in unrealized appreciation/depreciation of investments 124,628 55,928
- ------------------------------------------------------------------------------------------------
NET GAIN (LOSS) ON INVESTMENTS 282,028 (17,656)
================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $280,407 $ (16,645)
================================================================================================
</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.
(28 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS in thousands
<TABLE>
<CAPTION>
MID CAP MID CAP
GROWTH FUND VALUE FUND
- ------------------------------------------------------------------------------------------------------
10/1/99 10/1/98 10/1/99 10/1/98
to to to to
3/31/00 9/30/99 3/31/00 9/30/99
- ------------------------------------------------------------------------------------------------------
(unaudited) (unaudited)
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Investment income (loss) - net $ (1,621) $ (1,307) $ 1,011 $ 3,316
Net realized gain (loss) on investments 157,400 68,544 (73,584) (111,991)
Net realized loss on closing and expiration of options
written and purchased -- -- -- (6,875)
Net change in unrealized appreciation of investments 124,628 19,285 55,928 153,185
- ------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations 280,407 86,522 (16,645) 37,635
- ------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A -- -- (49) (192)
Class B -- -- (11) (80)
Class C -- -- -- --
Class Y -- -- (1,098) (3,277)
Net realized gain on investments:
Class A (33,787) (34,559) -- (6,521)
Class B (89) (5) -- (6,711)
Class C (102) -- -- --
Class Y (43,422) (14,259) -- (74,784)
- ------------------------------------------------------------------------------------------------------
Total distributions (77,400) (48,823) (1,158) (91,565) (1)See note 4 in the notes
- ------------------------------------------------------------------------------------------------------ to financial statements
CAPITAL SHARE TRANSACTIONS(1): for additional
Class A information.
Proceeds from sales 26,066 10,245 5,148 8,828 (2)Includes undistributed
Reinvestment of distributions 33,367 33,572 48 6,578 net investment income
Payments for redemptions (33,463) (86,670) (11,481) (20,742) (loss) (000) of: $(1,621)
- ------------------------------------------------------------------------------------------------------ and $0 for Mid Cap Growth
Increase (decrease) in net assets from Class A Fund and undistributed
transactions 25,970 (42,853) (6,285) (5,336) net investment income of
- ------------------------------------------------------------------------------------------------------ $47 and $194 for Mid Cap
Class B Value Fund at March 31,
Proceeds from sales 2,035 332 356 1,088 2000, and September 30,
Reinvestment of distribution 89 5 11 6,626 1999, respectively.
Payment for redemptions (170) (13) (6,449) (15,956) *Includes redemptions as
- ------------------------------------------------------------------------------------------------------ a result of the
Increase (decrease) in net assets from Class B redemption in kind on
transactions 1,954 324 (6,082) (8,242) October 8, 1998.
- ------------------------------------------------------------------------------------------------------
Class C
Proceeds from sales 1,313 472 368 180
Reinvestment of distributions 102 -- -- --
Payments for redemptions (49) (7) (12) (1)
- ------------------------------------------------------------------------------------------------------
Increase in net assets from Class C transactions 1,366 465 356 179
- ------------------------------------------------------------------------------------------------------
Class Y
Proceeds from sales 90,144 218,099 69,329 165,084
Reinvestment of distributions 32,160 13,236 628 57,099
Payments for redemptions (97,554) (111,681) (89,888) (289,556)*
- ------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class Y
transactions 24,750 119,654 (19,931) (67,373)
- ------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share
transactions 54,040 77,590 (31,942) (80,772)
- ------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 257,047 115,289 (49,745) (134,702)
NET ASSETS AT BEGINNING OF PERIOD 377,425 262,136 343,876 478,578
======================================================================================================
NET ASSETS AT END OF PERIOD (2) $ 634,472 $ 377,425 $ 294,131 $ 343,876
======================================================================================================
</TABLE>
The accompanying notes are an integral part of the financial statements.
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 29)
<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
2000* (unaudited) $ 12.87 $ 0.01 $ 8.54 $ -- $ (2.67)
1999 11.80 (0.07) 3.40 -- (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(2) 9.63 (0.06) 3.40 -- --
Class B - FAIF
2000* (unaudited) $ 12.75 $ 0.02 $ 8.36 $ -- $ (2.67)
1999 11.78 (0.10) 3.33 -- (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
2000* (unaudited) $ 12.80 $ (0.03) $ 8.45 $ -- $ (2.67)
1999(6) 12.43 (0.06) 0.43 -- --
Class Y
2000* (unaudited) $ 12.99 $ (0.01) $ 8.67 $ -- $ (2.67)
1999 11.87 (0.03) 3.41 -- (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
2000* (unaudited) $ 12.95 $ 0.03 $ 0.36 $ (0.04) $ --
1999 15.04 0.10 1.26 (0.10) (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)
Class B
2000* (unaudited) $ 12.67 $ 0.01 $ 0.33 $ (0.01) $ --
1999 14.80 0.04 1.22 (0.04) (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)
Class C
2000* (unaudited) $ 12.92 $ 0.01 $ 0.34 $ (0.01) $ --
1999(6) 13.69 0.06 (0.78) (0.05) --
Class Y
2000* (unaudited) $ 12.99 $ 0.04 $ 0.37 $ (0.05) $ --
1999 15.05 0.12 1.30 (0.13) (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)
- ------------------------------------------------------------------------------------------------
</TABLE>
+Returns are for the period indicated and have not been annualized.
*For the six month period ended March 31, 2000. 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 Fund's
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) Class C shares have been offered since February 1, 1999. All ratios for the
period have been annualized.
The accompanying notes are an integral part of the financial statements.
(30 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
<TABLE>
<CAPTION>
RATIO OF RATIO OF NET
RATIO OF NET EXPENSES TO INVESTMENT INCOME
NET ASSET RATIO OF INVESTMENT AVERAGE (LOSS) TO AVERAGE
VALUE NET ASSETS EXPENSES TO INCOME (LOSS) NET ASSETS NET ASSETS PORTFOLIO
END OF TOTAL END OF AVERAGE TO AVERAGE (EXCLUDING (EXCLUDING TURNOVER
PERIOD RETURN (A) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 18.75 75.23%+ $277,557 1.14% (0.74)% 1.17% (0.77)% 113%
12.87 31.69 165,072 1.14 (0.48) 1.19 (0.53) 94
11.80 (13.05) 188,763 1.18 (0.60) 1.34 (0.76) 39
15.25 21.04 274,799 1.23 (0.55) 1.39 (0.71) 51
13.86 17.84 303,769 1.18 (0.41) 1.37 (0.60) 44
12.97 34.68 252,632 1.24 (0.51) 1.42 (0.69) 33
$ 18.46 74.67%+ $ 2,602 1.90% (1.55)% 1.92% (1.57)% 113%
12.75 30.66 360 1.89 (1.26) 1.98 (1.35) 94
11.78 (15.01)+ 17 1.87 (1.12) 1.87 (1.12) 39
$ 14.57 7.77%+ $ -- 1.85% (1.33)% 1.85% (1.33)% 29%
15.20 21.21+ 1,028 1.85 (1.16) 1.85 (1.16) 51
$ 18.55 74.53%+ $ 2,226 1.90% (1.53)% 1.92% (1.55)% 113%
12.80 3.06+ 466 1.89 1.27 1.98 1.18 94
$ 18.98 75.41%+ $352,087 0.90% (0.49)% 0.92% (0.52)% 113%
12.99 31.97 211,527 0.89 (0.25) 0.96 (0.32) 94
11.87 (12.79) 73,356 0.87 (0.27) 0.87 (0.27) 39
15.29 21.93+ 59,393 0.87 (0.16) 0.87 (0.16) 51
- -------------------------------------------------------------------------------------------------------------------------
$ 13.30 3.02%+ $ 14,038 1.15% 0.48% 1.21% 0.42% 85%
12.95 8.03 20,148 1.15 0.63 1.18 0.60 121
15.04 (28.83) 29,261 1.14 0.43 1.14 0.43 135
24.19 39.93 35,207 1.14 0.58 1.15 0.57 82
20.41 25.23 17,987 1.13 1.06 1.13 1.06 143
17.89 12.63 11,609 1.09 2.08 1.20 1.97 72
$ 13.00 2.67%+ $ 13,153 1.90% (0.26)% 1.96% (0.32)% 85%
12.67 7.38 19,072 1.90 (0.13) 1.93 (0.16) 121
14.80 (29.40) 31,276 1.89 (0.31) 1.89 (0.31) 135
23.96 38.81 36,649 1.90 (0.18) 1.90 (0.18) 82
20.31 24.35 12,847 1.88 0.25 1.88 0.25 143
17.83 11.64 4,847 1.88 1.22 1.95 1.15 72
$ 13.26 2.72%+ $ 545 1.90% (0.27)% 1.97% (0.34)% 85%
12.92 (5.25)+ 164 1.90 0.29 1.93 0.26 121
$ 13.35 3.20%+ $266,395 0.90% 0.74% 0.96% 0.68% 85%
12.99 8.47 304,492 0.90 0.89 0.93 0.86 121
15.05 (28.65) 418,041 0.89 0.69 0.89 0.69 135
24.21 40.25 509,308 0.89 0.82 0.90 0.81 82
20.43 25.61 247,828 0.88 1.35 0.88 1.35 143
17.89 12.84 201,786 0.88 2.30 0.95 2.23 72
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 31)
<PAGE>
STATEMENTS OF NET ASSETS MARCH 31, 2000 (UNAUDITED)
SMALL CAP GROWTH FUND
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
COMMON STOCKS -- 94.3%
BASIC MATERIALS -- 2.7%
Cambrex 143,200 $ 6,229
Lone Star Technologies* 85,300 3,977
OM Group 114,825 5,225
------------
15,431
------------
CAPITAL GOODS -- 3.9%
ACT Manufacturing* 59,100 3,306
Advanced Energy Industries* 94,300 4,809
Anaren Microwave* 50,200 4,813
Electro Scientific Industries 72,200 4,188
Power-One* 95,700 5,778
------------
22,894
------------
COMMUNICATION SERVICES -- 5.3%
Cypress Communications* 163,500 4,006
IDT* 56,800 2,357
IXnet* 86,200 3,954
MGC Communications* 89,000 6,363
Network Plus* 112,800 4,568
Primus Telecommunications* 113,600 5,872
Z-Tel Technologies* 96,000 4,032
------------
31,152
------------
CONSUMER CYCLICALS -- 6.8%
99 Cents Only Stores 49,100 1,927
Chico's FAS 110,400 1,872
Copart 191,200 3,346
Digitas* 60,200 1,475
Forrester Research* 127,300 6,906
Getty Images* 98,000 3,522
Harris Interactive* 175,800 1,143
Interep National Radio Sales* 186,200 1,245
L90* 44,500 846
Men's Wearhouse* 65,400 1,937
Oshkosh Truck 93,800 2,914
SkillSoft* 88,600 2,575
Steiner Leisure* 134,400 2,587
Switchboard* 33,000 1,134
Tweeter Home Entertainment Group 33,400 1,478
ValueClick* 2,500 53
ValueVision International* 119,600 4,948
------------
39,908
------------
CONSUMER STAPLES -- 3.3%
Allscripts* 70,500 4,239
Cheesecake Factory* 48,400 2,015
Citadel Communications* 72,400 3,054
Computer Horizons* 116,500 1,995
Entercom Communications* 66,700 3,402
ImageX.com* 157,700 3,174
Regent Communications* 129,000 1,596
------------
19,475
------------
ENERGY -- 7.2%
Core Laboratories N.V.* 193,700 5,629
Global Industries* 405,300 5,928
Key Energy Services 503,600 5,854
Marine Drilling* 218,200 5,987
Patterson Energy* 251,700 7,991
UTI Energy* 173,400 6,546
Veritas DGC* 136,400 3,836
------------
41,771
------------
SMALL CAP GROWTH FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
FINANCIALS -- 3.2%
Affiliated Managers Group* 123,100 $ 5,847
Diversinet* 95,600 1,709
GlobalNet Financial.com* 100,000 3,587
Greater Bay Bancorp 38,300 1,542
National Discount Brokers Group* 33,900 1,674
Pinnacle Holdings* 76,800 4,243
------------
18,602
------------
HEALTH CARE -- 4.0%
Alkermes* 17,500 1,619
Anesta* 76,500 1,012
Celgene* 33,300 3,315
Cephalon* 51,500 1,931
DUSA Pharmaceuticals* 80,200 1,920
Enzon* 60,100 2,265
Invitrogen* 66,200 3,844
Luminex* 139,600 3,019
OraPharma* 70,200 1,299
Penwest Pharmaceuticals* 230,300 2,836
Protein Design Laboratories* 5,800 461
------------
23,521
------------
TECHNOLOGY -- 55.7%
24/7 Media* 9,600 379
Actel* 135,700 4,843
Advent Software 100,824 4,625
Alpha Industries* 27,200 2,584
ANADIGICS 47,850 3,158
AnswerThink Consulting Group* 115,100 2,813
Apropos Technology* 62,700 2,320
Aspen Technology* 39,900 1,611
BreezeCom* 10,200 381
Burr-Brown 123,750 6,729
C-Cube Microsystems* 60,200 4,383
Carrier Access* 51,700 2,753
CCC Information Services Group* 124,800 2,683
Centigram Communications* 229,700 4,364
Chordiant Software* 97,200 1,579
CommScope* 67,000 3,057
Commtouch Software* 72,100 3,393
Cylink* 48,000 696
Cymer* 56,900 2,845
Cysive* 47,600 3,261
Cytyc 151,000 7,286
Davox* 124,400 3,328
Digimarc* 14,400 634
Digital Microwave* 152,900 5,179
Documentum* 67,700 5,281
DSET* 67,000 1,235
DSL.net* 200,300 4,419
Eprise* 19,700 310
Etinuum* 96,700 919
Exar 48,000 3,435
Exchange Applications 43,500 2,302
FairMarket* 10,600 241
FSI International* 158,100 3,241
FutureLink* 104,200 2,618
Glenayre Technologies* 239,600 4,208
GRIC Communications* 19,100 645
Harmonic* 34,600 2,880
Hyperion Solutions* 66,400 2,158
inSilicon* 19,200 304
Integrated Information Systems* 137,600 2,999
InterVU* 21,275 1,915
IntraNet Solutions* 44,200 2,033
iXL Enterprises* 143,800 4,026
Jacada* 183,100 2,678
The accompanying notes are an integral part of the financial statements.
(32 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
SMALL CAP GROWTH FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
Kopin* 33,600 $ 2,310
L-3 Communications* 46,900 2,439
Level 8 Systems* 58,600 2,740
Lightspan Partnership* 152,900 2,714
Luminant Worldwide* 66,400 1,104
MCK Communications* 89,300 4,275
Mercury Interactive* 106,200 8,416
Metalink* 40,900 1,570
Methode Electronics, Cl A 39,100 1,975
Micrel* 64,100 6,154
Micromuse 30,550 4,241
MicroStrategy 20,200 1,759
Natural MicroSystems* 47,400 4,065
Net Perceptions* 123,200 4,551
Netegrity* 72,900 4,994
NetObjects* 109,200 2,484
Netpliance* 77,800 1,128
NETsilicon* 122,800 2,656
ODS Networks* 212,300 5,095
ONYX Software* 168,600 5,374
Peregrine Systems* 186,800 12,527
Primus Knowledge Solutions* 68,900 5,925
Project Software & Development* 145,400 8,215
Qiagen* 17,500 2,380
RADVision* 10,600 555
REMEC* 207,500 10,479
Sage* 104,200 2,292
Sagent Technology* 78,600 2,265
SalesLogix* 84,700 2,292
Secure Computing* 263,600 4,481
Selectica* 11,100 980
Semtech* 44,700 2,864
Silicon Image* 37,600 2,693
Silicon Laboratories* 4,900 434
Silicon Storage Technology* 41,700 3,081
Smith-Gardner & Associates* 156,900 2,765
Splash Technology Holdings* 266,100 3,326
Talk City* 84,300 511
TelCom Semiconductor* 168,600 5,100
Telocity* 100,800 1,247
TenFold* 104,000 6,292
Transwitch 65,837 6,329
TriZetto Group* 157,400 5,479
TSI International Software* 74,725 6,207
Uproar* 41,200 1,107
Verity 49,550 2,019
VerticalNet* 21,600 2,938
viaLINK Company 117,000 3,861
Voyager.net* 95,700 1,310
Watchguard Technologies* 108,600 9,774
Wink Communications* 126,900 4,235
Witness Systems* 187,100 5,683
Zamba* 256,400 2,684
------------
325,105
------------
TRANSPORTATION -- 0.8%
C.H. Robinson Worldwide 75,900 2,827
EGL* 65,200 1,524
------------
4,351
------------
UTILITIES -- 1.4%
National-Oilwell* 272,000 8,398
------------
SMALL CAP GROWTH FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $405,249) $ 550,608
------------
RELATED PARTY MONEY MARKET FUND -- 6.2%
First American Prime Obligations Fund (A) 36,155,647 36,156
------------
TOTAL RELATED PARTY MONEY MARKET FUND (A)
(Cost $36,156) 36,156
------------
TOTAL INVESTMENTS -- 100.5%
(Cost $441,405) 586,764
------------
OTHER ASSETS AND LIABILITIES, NET -- (0.5%) (B) (2,926)
------------
NET ASSETS:
Portfolio Capital -- Class A ($0.0001 par value --
2 billion authorized) based on
2,309,764 outstanding shares 28,020
Portfolio Capital -- Class B ($0.0001 par value --
2 billion authorized) based on
300,575 outstanding shares 5,830
Portfolio Capital -- Class C ($0.0001 par value --
2 billion authorized) based on
77,047 outstanding shares 1,761
Portfolio Capital -- Class Y ($0.0001 par value --
2 billion authorized) based on
18,160,927 outstanding shares 270,011
Accumulated net investment loss (841)
Accumulated net realized gain on investments 133,698
Net unrealized appreciation of investments 145,359
------------
TOTAL NET ASSETS -- 100.0% $ 583,838
------------
Net asset value and redemption price per share -- Class A $ 27.76
Maximum sales charge of 5.25% (C) 1.54
------------
Offering price per share -- Class A $ 29.30
------------
Net asset value and offering price per share -- Class B (D) $ 26.36
------------
Net asset value and redemption price per share -- Class C (E) $ 27.50
Maximum sales charge of 1.00% (F) 0.28
------------
Offering price per share -- Class C $ 27.78
------------
Net asset value, offering price, and redemption
price per share -- Class Y $ 28.07
------------
* 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 5% of total net
assets include the following (000):
Cash collateral received for securities on loan $124,125
Payable upon return of securities on loan $(124,125)
(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 calculated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%.
Cl--Class
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 33)
<PAGE>
STATEMENTS OF NET ASSETS MARCH 31, 2000 (UNAUDITED)
SMALL CAP VALUE FUND
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
COMMON STOCKS -- 97.0%
BASIC MATERIALS -- 1.5%
Cadiz* 163,400 $ 1,389
Matthews International, Cl A 150,300 3,401
Northwest Pipe* 189,200 2,649
------------
7,439
------------
CAPITAL GOODS -- 13.0%
Alliant Techsystems* 276,900 16,302
Applied Power, Cl A 120,000 3,420
Astec Industries* 150,400 3,995
Benchmark Electronics* 109,300 4,044
Cognex* 30,700 1,771
Communications Systems 19,000 332
Dayton Superior, Cl A* 241,200 6,075
Dupont Photomasks* 19,400 1,124
Electro Scientific Industries 28,800 1,670
L.B. Foster, Cl A* 383,800 1,559
MagneTek* 401,487 3,664
Moog, Cl A* 150,000 2,756
Newpark Resources* 311,800 2,494
Pentair 208,700 7,735
SPX* 35,000 3,988
Thomas Industries 8,350 157
Tredegar Industries 58,400 1,573
------------
62,659
------------
CONSUMER CYCLICALS -- 16.4%
Acxiom* 58,140 1,933
Ames Department Stores* 91,800 2,255
D.R. Horton 224,122 2,928
Davids Bridal* 289,900 3,497
Dollar Thrifty Automotive* 133,300 2,291
Dura Automotive Systems* 421,600 7,246
Edelbrock 139,200 1,496
ITT Educational Services* 112,200 1,795
Midway Games* 126,800 1,680
OEA* 210,300 2,024
Park Ohio Holdings* 273,917 2,910
PolyMedica* 210,000 12,337
Regis 646,850 9,581
School Specialty* 98,600 2,120
Simpson Manufacturing* 58,400 2,307
Sport-Haley* 280,000 1,400
Stanley Furniture* 280,900 5,442
Steiner Leisure* 122,700 2,362
Tower Automotive* 340,000 5,567
TRO Learning* 195,000 2,340
Venator Group* 366,400 3,275
Whitehall Jewellers 107,250 2,520
------------
79,306
------------
CONSUMER STAPLES -- 4.4%
Buenos Aires Emb-spons, ADR 9,098 1
Buffets* 250,000 2,258
Drug Emporium* 238,900 956
Interim Services* 106,000 1,968
Michael Foods 278,900 5,857
Performance Food Group* 110,800 2,424
SMALL CAP VALUE FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
Suiza Foods* 132,800 $ 5,345
Topps* 285,000 2,369
------------
21,178
------------
ENERGY -- 10.3%
Atwood Oceanic* 12,600 836
Basin Exploration* 415,000 6,199
Callon Petroleum* 35,000 424
Chieftan International* 208,100 4,188
Core Laboratories N.V.* 220,500 6,408
Evergreen Resources* 133,200 3,222
Forest Oil* 554,400 5,890
Global Industries* 207,800 3,039
Marine Drilling* 72,100 1,978
Newfield Exploration* 175,000 6,169
Tesoro Petroleum* 197,700 2,274
Veritas DGC* 330,800 9,304
------------
49,931
------------
FINANCIALS -- 17.5%
Astoria Financial 90,000 2,554
Chelsea GCA Realty, REIT 108,800 3,155
Community First Bankshares 405,000 6,480
Cullen/Frost Bankers 134,100 3,545
Dain Rauscher 100,000 6,594
Enhance Financial Services Group 221,700 3,132
Farm Family Holdings* 71,900 2,139
First Republic Bank* 191,500 3,794
Highwoods Properties, REIT 85,000 1,806
Horace Mann Educators 155,900 2,874
Lexington Corporate Properties, REIT 146,086 1,507
Metris 90,300 3,510
National Commerce Bancorporation 49,900 923
Pacific Gulf Properties, REIT 62,800 1,232
Penn Treaty American* 94,300 1,574
Philadelphia Consolidated Holding* 215,300 3,176
Protective Life 150,000 4,762
Radian Group 315,900 15,045
Roslyn Bancorp 270,000 4,809
Southwest Bancorp of Texas* 112,900 2,194
TCF Financial 278,400 6,629
Webster Financial 152,904 3,517
------------
84,951
------------
HEALTH CARE -- 7.6%
America Service Group* 145,200 2,178
ATS Medical* 110,000 1,224
BOLDER Technologies* 231,200 2,023
Catalytica* 715,933 10,426
Cooper 183,600 5,910
Datatrak International* 17,581 118
Lifecore Biomedical* 163,600 1,513
Mentor 168,900 4,560
Orphan Medical* 41,700 453
Renal Care* 111,500 2,418
Res-Care* 288,500 2,705
Respironics* 56,200 808
Spacelabs Medical* 145,600 2,321
------------
36,657
------------
The accompanying notes are an integral part of the financial statements.
(34 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
SMALL CAP VALUE FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
TECHNOLOGY -- 24.4%
Actel* 229,400 $ 8,187
Applied Materials* 36,473 3,438
Bell & Howell* 330,600 10,331
Catalyst International* 39,800 512
Computer Network Technology* 66,600 1,166
Digital Microwave* 141,100 4,780
Evolving Systems* 270,000 2,565
FSI International* 169,700 3,479
Gatefield* 74,672 392
Innovex 300,800 2,942
ITI Technologies* 69,500 2,068
JDA Software* 90,700 1,326
Lodgenet Entertainment* 170,000 3,411
Maxtor* 101,500 1,313
Medquist* 136,300 3,706
Micron Electronics* 49,600 694
National Computer Systems 260,000 13,195
NOVA* 105,474 3,072
Onemain.com* 121,900 1,379
Pairgain Technologies* 102,800 1,921
Pioneer-Standard Electronics 157,700 2,484
Pomeroy Computer Resources* 139,300 2,560
Project Software & Development* 174,500 9,859
Radisys 299,400 18,001
Rainbow Technologies* 40,000 1,495
REMEC* 141,300 7,136
S3* 108,700 2,283
Sapiens International* 209,800 2,570
Triple P N.V.* 123,867 225
Zamba* 124,100 1,299
------------
117,789
------------
TRANSPORTATION -- 0.5%
United Shipping and Technology* 159,800 2,407
------------
UTILITIES -- 1.4%
TNP Enterprises 50,000 2,191
Unisource Energy Holding 300,000 4,406
------------
6,597
------------
TOTAL COMMON STOCKS
(Cost $321,195) 468,914
------------
CONVERTIBLE BONDS -- 0.2%
Drug Emporium, 65.1466 shares
7.750%, 10/01/14 $ 1,661 793
------------
TOTAL CONVERTIBLE BONDS
(Cost $1,331) 793
------------
RELATED PARTY MONEY MARKET FUND -- 3.5%
First American Prime Obligations Fund (A) 16,906,537 16,907
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $16,907) 16,907
------------
SMALL CAP VALUE FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100.7%
(Cost $339,433) $ 486,614
------------
OTHER ASSETS AND LIABILITIES, NET -- (0.7%) (B) (3,299)
------------
NET ASSETS:
Portfolio Capital -- Class A ($0.0001 par value --
2 billion authorized) based on
2,100,978 outstanding shares 29,329
Portfolio Capital -- Class B ($0.0001 par value --
2 billion authorized) based on
916,497 outstanding shares 16,452
Portfolio Capital -- Class C ($0.0001 par value --
2 billion authorized) based on
25,981 outstanding shares 372
Portfolio Capital -- Class Y ($0.0001 par value --
2 billion authorized) based on
26,365,670 outstanding shares 273,286
Accumulated net investment loss (506)
Accumulated net realized gain on investments 17,201
Net unrealized appreciation of investments 147,181
------------
NET ASSETS -- 100.0% $ 483,315
------------
Net asset value and redemption price per share -- Class A $ 16.37
Maximum sales charge of 5.25% (C) 0.91
------------
Offering price per share -- Class A $ 17.28
------------
Net asset value and offering price per share -- Class B (D) $ 16.12
------------
Net asset value and redemption price per share
-- Class C (E) $ 16.24
Maximum sales charge of 1.00% (F) 0.16
------------
Offering price per share -- Class C $ 16.40
------------
Net asset value, offering price, and redemption
price per share -- Class Y $ 16.45
------------
* 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 $40,256
Payable upon return of securities on loan $(40,256)
(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
REIT--Real Estate Investment Trust
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 35)
<PAGE>
STATEMENTS OF OPERATIONS for the six months ended March 31, 2000 (unaudited) in
thousands
<TABLE>
<CAPTION>
SMALL CAP SMALL CAP
GROWTH FUND VALUE FUND
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME:
Interest $ 1,063+ $ 393+
Dividends 184 1,266
- ----------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 1,247 1,659
==============================================================================================
EXPENSES:
Investment advisory fees 1,567 1,229
Less: Waiver of investment advisory fees (1) (42)
Administrator fees 244 191
Transfer agent fees 63 112
Custodian fees 67 52
Directors' fees 4 3
Registration fees 16 11
Professional fees 5 4
Printing 16 12
Distribution fees - Class A 62 19
Distribution fees - Class B 23 17
Distribution fees - Class C 5 1
Other 8 7
- ----------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 2,079 1,616
==============================================================================================
Investment income (loss) - net (832) 43
- ----------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS - NET:
Net realized gain on investments 138,844 17,476
Net change in unrealized appreciation/depreciation of investments 108,426 53,977
- ----------------------------------------------------------------------------------------------
NET GAIN ON INVESTMENTS 247,270 71,453
==============================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $246,438 $71,496
==============================================================================================
</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.
(36 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS in thousands
<TABLE>
<CAPTION>
SMALL CAP SMALL CAP
GROWTH FUND VALUE FUND
- -------------------------------------------------------------------------------------------------------
10/1/99 10/1/98 10/1/99 10/1/98
to to to to
3/31/00 9/30/99 3/31/00 9/30/99
- -------------------------------------------------------------------------------------------------------
(unaudited) (unaudited)
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Investment income (loss) - net $ (832) $ (455) $ 43 $ 265
Net realized gain on investments 138,844 32,724 17,476 5,700
Net change in unrealized appreciation
of investments 108,426 37,636 53,977 33,198
- -------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 246,438 69,905 71,496 39,163
- -------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (9) -- -- (7)
Class B -- -- -- --
Class C -- -- -- --
Class Y -- -- (29) (554)
Net realized gain on investments:
Class A (3,976) (46) (53) (1,046)
Class B (304) (2) (5) (58)
Class C (53) -- -- --
Class Y (31,018) (171) (1,495) (29,702)
- -------------------------------------------------------------------------------------------------------
Total distributions (35,360) (219) (1,582) (31,367) (1)See note 4 in the notes
- ------------------------------------------------------------------------------------------------------- to financial statements
CAPITAL SHARE TRANSACTIONS(1): for additional
Class A information.
Proceeds from sales 22,150 50,619 8,284 4,600 (2)Includes net investment
Shares issued in connection with acquisition of Micro loss of (000) of $(841)
Cap Value Fund and Regional Equity Fund -- -- 21,098 -- and $0 for Small Cap
Reinvestment of distributions 3,812 54 52 1,045 Growth Fund,
Payments for redemptions (16,981) (58,336) (10,968) (7,771) undistributed net
- ------------------------------------------------------------------------------------------------------- investment income, $65,
Increase (decrease) in net assets from Class A and $(1) for Small Cap
transactions 8,981 (7,663) 18,466 (2,126) Value Fund, at March
- ------------------------------------------------------------------------------------------------------- 31, 2000, and September
Class B 30, 1999, respectively.
Proceeds from sales 4,081 1,003 174 663
Shares issued in connection with acquisition of
Regional Equity Fund -- -- 13,248 --
Reinvestment of distributions 303 2 5 59
Payments for redemptions (478) (415) (1,382) (350)
- -------------------------------------------------------------------------------------------------------
Increase in net assets from Class B transactions 3,906 590 12,045 372
- -------------------------------------------------------------------------------------------------------
Class C
Proceeds from sales 1,467 283 293 113
Shares issued in connection with acquisition of
Regional Equity Fund -- -- -- --
Reinvestment of distributions 54 -- 1 --
Payment for redemptions (42) (1) (34) (1)
- -------------------------------------------------------------------------------------------------------
Increase in net assets from Class C transactions 1,479 282 260 112
- -------------------------------------------------------------------------------------------------------
Class Y
Proceeds from sales 130,381 119,832 48,290 127,190
Shares issued in connection with acquisition of Micro
Cap Value Fund and Regional Equity Fund -- -- 110,331 --
Reinvestment of distributions 13,357 50 1,298 27,244
Payments for redemptions (68,752) (42,599) (109,729) (209,352)
- -------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class Y
transactions 74,986 77,283 50,190 (54,918)
- -------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share
transactions 89,352 70,492 80,961 (56,560)
- -------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 300,430 140,178 150,875 (48,764)
NET ASSETS AT BEGINNING OF PERIOD 283,408 143,230 332,440 381,204
=======================================================================================================
NET ASSETS AT END OF PERIOD (2) $ 583,838 $ 283,408 $ 483,315 $ 332,440
=======================================================================================================
</TABLE>
The accompanying notes are an integral part of the financial statements.
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 37)
<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)
2000* (unaudited) $ 16.77 $ -- $ 13.06 $ -- $ (2.07) $ --
1999 11.90 (0.06) 4.95 -- (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) -- --
Class B - FAIF
2000* (unaudited) $ 16.07 $ 0.03 $ 12.33 $ -- $ (2.07) $ --
1999 11.50 (0.14) 4.73 -- (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
2000* (unaudited) $ 16.68 $ (0.02) $ 12.91 $ -- $ (2.07) $ --
1999(6) 15.48 (0.08) 1.28 -- -- --
Class Y
2000* (unaudited) $ 16.92 $ (0.01) $ 13.23 $ -- $ (2.07) $ --
1999 11.98 (0.02) 4.98 -- (0.02) --
1998(3) 14.29 -- (2.31) -- -- --
- -------------------------------------------------------------------------------------------------------------------
SMALL CAP VALUE FUND(B)
Class A
2000* (unaudited) $ 13.94 $ (0.01) $ 2.51 $ -- $ (0.07) $ --
1999 13.58 0.01 1.47 (0.01) (1.11) --
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
2000* (unaudited) $ 13.77 $ (0.03) $ 2.45 $ -- $ (0.07) $ --
1999 13.53 0.02 1.33 -- (1.11) --
1998(7) 18.23 0.01 (3.43) (0.01) (1.27) --
1997(11)(12) 18.22 -- 0.01 -- -- --
Class C
2000* (unaudited) $ 13.87 $ -- $ 2.44 $ -- $ (0.07) $ --
1999(6) 13.48 0.01 0.38 -- -- --
Class Y
2000* (unaudited) $ 13.98 $ -- $ 2.54 $ -- $ (0.07) $ --
1999 13.60 0.01 1.50 (0.02) (1.11) --
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, 2000. 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 Qualivest 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 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) Class C shares have been offered since February 1, 1999. All ratios for the
period have been annualized.
(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.
The accompanying notes are an integral part of the financial statements.
(38 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
<TABLE>
<CAPTION>
RATIO OF RATIO OF NET
RATIO OF NET EXPENSES TO INVESTMENT INCOME
NET ASSET RATIO OF INVESTMENT AVERAGE (LOSS) TO AVERAGE
VALUE NET ASSETS EXPENSES TO INCOME (LOSS) NET ASSETS NET ASSETS PORTFOLIO
END OF TOTAL END OF AVERAGE TO AVERAGE (EXCLUDING (EXCLUDING TURNOVER
PERIOD RETURN (A) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 27.76 83.87%+ $ 64,096 1.14% (0.58)% 1.14% (0.58)% 128%
16.77 41.11 32,203 1.14 (0.39) 1.15 (0.40) 110
11.90 (18.66) 28,252 1.29 (0.61) 1.43 (0.75) 92
17.41 45.66 35.647 1.34 (0.75) 1.98 (1.39) 109
17.11 5.38 30,968 1.32 0.20 1.79 (0.27) 125
17.68 13.88 48,421 1.40 0.43 1.63 0.20 182
$ 26.36 83.11%+ $ 7,920 1.89% (1.35)% 1.89% (1.35)% 128%
16.07 39.92 2,217 1.90 (1.16) 1.91 (1.17) 110
11.50 (16.30)+ 1,104 1.90 (1.20) 1.90 (1.20) 92
$ 9.71 3.61%+ $ -- 2.03% (1.30)% 2.40% (1.67)% 56%
9.54 31.77+ 480 1.98 (1.49) 2.15 (1.66) 109
$ 27.50 83.25%+ $ 2,118 1.89% (1.37)% 1.91% (1.39)% 128%
16.68 7.75+ 309 1.90 (1.18) 1.91 (1.19) 110
$ 28.07 84.10%+ $509,704 0.89% (0.33)% 0.89% (0.33)% 128%
16.92 41.42 248,679 0.90 (0.16) 0.91 (0.17) 110
11.98 (16.17)+ 113,874 0.90 (0.20) 0.90 (0.20) 92
- -------------------------------------------------------------------------------------------------------------------------
$ 16.37 18.00%+ $ 34,402 1.14% (0.23)% 1.14% (0.23)% 43%
13.94 11.12 11,567 1.14 (0.17) 1.14 (0.17) 44
13.58 (19.48)+ 13,551 1.13 0.15 1.13 0.15 21
18.20 1.90+ 19,194 1.37 (0.38) 1.37 (0.38) 3
17.86 41.71 22,429 1.31 0.01 1.31 0.01 29
13.95 14.93 10,247 1.33 0.14 1.33 0.14 34
13.23 34.29+ 1,569 1.11 0.63 1.38 0.36 37
$ 16.12 17.64%+ $ 14,774 1.89% (1.07)% 1.89% (1.07)% 43%
13.77 10.16 1,005 1.89 (0.93) 1.89 (0.93) 44
13.53 (19.91)+ 618 1.88 (0.53) 1.88 (0.53) 21
18.23 0.05+ 1 1.90 (1.53) 1.90 1.53 3
$ 16.24 17.66%+ $ 422 1.89% (0.94)% 1.89% (0.94)% 43%
13.87 2.89+ 116 1.89 (1.04) 1.89 (1.04) 44
$ 16.45 18.25%+ $433,718 0.89% 0.05% 0.89% 0.05% 43%
13.98 11.36 319,752 0.89 0.08 0.89 0.08 44
13.60 (19.31)+ 367,035 0.88 0.40 0.88 0.40 21
18.23 2.01+ 461,046 1.06 (0.06) 1.06 (0.06) 3
17.87 41.96 449,988 1.06 0.25 1.06 0.25 29
13.96 14.94 297,793 1.08 0.41 1.08 0.41 34
13.26 34.76+ 209,626 0.60 1.20 1.17 0.63 37
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 39)
<PAGE>
STATEMENTS OF NET ASSETS MARCH 31, 2000 (UNAUDITED)
EMERGING MARKETS FUND
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
FOREIGN COMMON STOCKS -- 89.5%
BRAZIL --6.1%
CIA Brasileira de Distribuicao Grupo 29,230,000 $ 1,045
Tele Centro Sul Participacoes ADR 9,300 753
Telebras ADR 15,400 2,305
Unibanco GDR 6,500 206
------------
4,309
------------
CHINA -- 5.8%
China Telecom ADR* 17,800 3,155
China.com, Cl A* 11,500 931
------------
4,086
------------
HONG KONG -- 7.9%
Hongkong.com* 366,000 106
Hutchison Whampoa 68,000 1,227
Johnson Electric Holdings 221,500 1,515
Pacific Century Cyberworks* 288,000 673
Television Broadcasts 229,000 2,037
------------
5,558
------------
HUNGARY -- 2.9%
EGIS RT 20,300 1,006
Richter Gedeon 15,600 1,024
------------
2,030
------------
INDIA -- 4.7%
Infosys Technologies 7,800 1,505
Satyam Infoway ADR* 20,000 1,072
Videsh Sanchar Nigam GDR 28,300 758
------------
3,335
------------
ISRAEL -- 7.3%
Amdocs* 10,300 759
BATM Advanced Communications* 10,600 963
Check Point Software Technologies* 13,100 2,241
Comverse Technology* 6,350 1,200
------------
5,163
------------
KOREA -- 13.9%
Dacom* 3,990 1,087
Daou Technology 37,862 781
Dreamline* 6,420 413
Korea Technology Banking 81,500 1,022
Korea Telecom ADR 13,900 608
S1 353 5
Samsung Electronics GDR* (A) 18,390 3,283
Serome Technology 2,800 143
SK Telecom ADR 63,947 2,494
------------
9,836
------------
MEXICO -- 8.5%
Grupo Posadas, Cl A* 1,453,000 1,005
Grupo Televisa GDR* 35,700 2,428
Telefonos de Mexico ADR 38,600 2,586
------------
6,019
------------
EMERGING MARKETS FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
RUSSIA -- 0.8%
Rostlecom ADR* (A) 11,600 $ 276
Unified Energy Systems ADR 14,200 275
------------
551
------------
SINGAPORE -- 6.4%
Chartered Semiconductor Manufacturing ADR* 1,800 170
Datacraft Asia 291,000 2,721
NatSteel Electronics 89,000 582
Venture Manufacturing 80,000 1,098
------------
4,571
------------
SOUTH AFRICA -- 3.0%
Dimension Data Holdings* 65,100 601
M-Cell 132,700 733
MIH* 5,600 342
Old Mutual 174,400 417
------------
2,093
------------
SPAIN -- 3.0%
Terra Networks* 26,400 2,123
------------
TAIWAN -- 14.1%
Accton Technology* 265,000 1,038
Acer* 164,900 464
Advanced Semiconductor Engineering* 860 3
Far Eastern Textile 197,000 409
Gigamedia* 10,400 564
Nan Ya Plastic 100,000 232
Synnex Technology GDR* (A) 4,500 142
Systex* 113,000 1,094
Taiwan Semiconductor Manufacturing* 323,890 2,186
Taiwan Semiconductor Manufacturing ADR* 3,900 222
United Microelectronics* 603,550 2,345
Via Technologies* 85,000 1,273
------------
9,972
------------
THAILAND -- 2.2%
Advanced Info Service* 101,900 1,537
------------
TURKEY -- 2.9%
Eregli Demir Celik* 7,390,000 339
Koc Holding 7,670,000 1,693
------------
2,032
------------
TOTAL FOREIGN COMMON STOCKS
(Cost $37,520) 63,215
------------
FOREIGN PREFERRED STOCKS -- 3.1%
BRAZIL -- 3.1%
Banco Itau* 7,480,000 668
Petrol Brasileiros 5,540,000 1,507
------------
2,175
------------
TOTAL FOREIGN PREFERRED STOCKS
(Cost $1,893) 2,175
------------
The accompanying notes are an integral part of the financial statements.
(40 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
EMERGING MARKETS FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
RELATED PARTY MONEY MARKET FUND -- 5.7%
First American Prime Obligations Fund (B) 4,049,206 $ 4,049
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $4,049) 4,049
------------
TOTAL INVESTMENTS -- 98.3%
(Cost $43,462) 69,439
------------
OTHER ASSETS AND LIABILITIES, NET -- 1.7% 1,217
------------
NET ASSETS:
Portfolio Capital-Class A ($.0001 par value --
2 billion authorized) based on
534,951 outstanding shares $ 11,696
Portfolio Capital-Class B ($.0001 par value --
2 billion authorized) based on
7,032 outstanding shares 68
Portfolio Capital-Class C ($.0001 par value --
2 billion authorized) based on
477 outstanding shares 5
Portfolio Capital-Class Y ($.0001 par value --
2 billion authorized) based on
5,996,036 outstanding shares 38,043
Accumulated net investment loss (740)
Accumulated net realized loss on investments (4,398)
Net unrealized appreciation of investments 25,977
Net unrealized appreciation of forward foreign
currency contracts, foreign currency and
translation of other assets and liabilities
in foreign currency 5
------------
TOTAL NET ASSETS -- 100.0% $ 70,656
------------
Net asset value and redemption price per share -- Class A $ 10.75
Maximum sales charge of 5.25% (C) 0.60
------------
Offering price per share -- Class A $ 11.35
------------
Net asset value per share -- Class B (D) $ 10.63
------------
Net asset value per share -- Class C (E) $ 10.74
Maximum sales charge of 1.00% (F) 0.11
------------
Offering price per share -- Class C $ 10.85
------------
Net asset value, offering price, and redemption
price per share -- Class Y $ 10.81
------------
EMERGING MARKETS 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) 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 calculated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%.
ADR--American Depositary Receipt
Cl--Class
GDR--Global Depositary Receipt
At March 31, 2000, sector diversification of the Portfolio was as follows:
% of
SECTOR DIVERSIFICATION NET ASSETS VALUE (000)
- ---------------------- ---------- -----------
FOREIGN COMMON STOCK
Electronics 18.3% $ 12,954
Computer Services 11.2% 7,892
Telephone 8.4% 5,920
Telecommunication Services 8.1% 5,706
Cellular Telecommunications 7.7% 5,424
Television 6.8% 4,806
Telecommunication Equipment 5.6% 3,921
Computer Software 5.0% 3,555
Computers 4.6% 3,264
Diversified Operations 4.1% 2,920
Pharmaceuticals 2.9% 2,030
Food Retail 1.5% 1,045
Financial Services 1.4% 1,022
Lodging 1.4% 1,005
Insurance 0.6% 422
Textiles 0.6% 409
Steel 0.5% 339
Chemicals 0.3% 232
Banking 0.3% 206
Multimedia 0.2% 143
----- --------
TOTAL FOREIGN COMMON STOCK 89.5% 63,215
TOTAL FOREIGN PREFERRED STOCK 3.1% 2,175
TOTAL RELATED PARTY
MONEY MARKET FUND 5.7% 4,049
----- --------
TOTAL INVESTMENTS 98.3% 69,439
OTHER ASSETS AND
LIABILITIES, NET 1.7% 1,217
----- --------
NET ASSETS 100.0% $ 70,656
===== ========
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 41)
<PAGE>
STATEMENTS OF NET ASSETS MARCH 31, 2000 (UNAUDITED)
INTERNATIONAL FUND
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
FOREIGN COMMON STOCKS -- 91.2%
AUSTRALIA -- 0.7%
News Corporation 511,500 $ 7,156
------------
CANADA -- 4.3%
724 Solutions* 22,100 2,751
Nortel Networks 116,200 14,641
PMC-Sierra* 65,600 13,362
Research In Motion* 78,600 8,371
TD Waterhouse Group* 134,500 3,362
------------
42,487
------------
FINLAND -- 6.7%
Nokia 202,000 42,655
Sonera Oyj 350,100 23,851
------------
66,506
------------
FRANCE -- 6.4%
Cap Gemini 48,750 13,182
Equant* 137,100 11,358
STMicroelectronics 189,100 34,692
Vivendi 39,300 4,525
------------
63,757
------------
GERMANY -- 6.5%
Allianz, Registered 19,400 7,887
Deutsche Bank, Registered 117,000 7,764
Epcos* 172,700 22,772
Fantastic* 99,000 2,930
Infineon Technologies* 92,900 5,064
Intershop Communications* 9,450 4,758
Siemens 96,100 13,819
------------
64,994
------------
HONG KONG -- 3.7%
Cheung Kong Holdings 611,000 9,142
Citic Pacific 505,000 3,061
Hutchison Whampoa 625,000 11,278
Television Broadcasts 1,472,000 13,091
------------
36,572
------------
ISRAEL -- 1.0%
Check Point Software Technologies* 60,000 10,264
------------
ITALY -- 0.3%
Telecom Italia Mobile 267,400 3,275
------------
JAPAN -- 34.4%
Fujitsu Support & Service 12,400 2,089
Internet Initiative Japan ADR* 49,500 3,453
Japan Telecom 687 29,085
Keyence 8,580 3,424
Kyocera 31,700 5,294
Matsushita Communications Industrial 157,000 28,879
Murata Manufacturing 182,000 44,194
NEC 349,000 10,292
Nikko Securities 2,260,000 34,180
INTERNATIONAL FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
Nikon 126,000 $ 4,832
Nomura Securities 471,000 15,356
NTT Data 452 8,490
NTT DoCoMo 1,090 44,661
Rohm 51,600 17,928
Softbank 36,300 32,326
Sony 203,000 28,647
Takeda Chemical Industries 800 57
Tokyo Electron 168,000 25,343
Trans Cosmos 11,000 3,105
------------
341,635
------------
MEXICO -- 0.5%
Grupo Televisa GDR* 72,000 4,896
------------
NETHERLANDS -- 5.2%
ASM Lithography Holding* 196,000 21,855
CMG 106,800 9,210
Getronics* 106,400 8,123
Philips Electronics 62,496 10,486
Qiagen ADR* 12,400 1,686
------------
51,360
------------
SOUTH KOREA -- 2.6%
Samsung Electronics GDR (A)* 145,400 25,954
------------
SPAIN -- 0.5%
Terra Networks* 66,300 5,331
------------
SWEDEN -- 7.0%
ABB 40,800 4,800
Ericsson Telephone ADR* 444,100 41,662
NetCom, Cl B* 192,900 16,609
Securitas, Cl B* 246,400 5,951
------------
69,022
------------
SWITZERLAND -- 0.7%
Ares Serono, Cl B 1,890 7,111
------------
UNITED KINGDOM -- 10.7%
Arm Holdings* 86,500 5,221
Baltimore Technologies* 71,100 9,738
British Sky Broadcasting 129,300 3,418
Cambridge Antibody Technology* 60,800 1,973
Carlton Communications 188,600 2,284
Celltech Group* 249,900 4,521
COLT Telecom Group* 478,400 22,743
Logica 373,200 12,488
Pearson 61,600 2,140
Psion 107,300 7,112
Shire Pharmaceuticals* 267,800 4,568
Skyepharma* 886,900 1,554
Vodafone AirTouch 5,107,257 28,347
------------
106,107
------------
TOTAL FOREIGN COMMON STOCKS
(Cost $485,414) 906,427
------------
The accompanying notes are an integral part of the financial statements.
(42 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
INTERNATIONAL FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
FOREIGN PREFERRED STOCKS -- 1.3%
GERMANY -- 1.3%
SAP 18,250 $ 13,122
------------
TOTAL FOREIGN PREFERRED STOCKS
(Cost $14,139) 13,122
------------
RELATED PARTY MONEY MARKET FUND -- 5.7%
First American Prime Obligations Fund (B) 56,473,007 56,473
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $56,473) 56,473
------------
TOTAL INVESTMENTS -- 98.2%
(Cost $556,025) 976,022
------------
OTHER ASSETS AND LIABILITIES, NET -- 1.8% 17,532
------------
NET ASSETS:
Portfolio Capital-Class A ($.0001 par value --
2 billion authorized) based on
4,255,500 outstanding shares $ 59,558
Portfolio Capital-Class B ($.0001 par value --
2 billion authorized) based on
493,122 outstanding shares 8,037
Portfolio Capital-Class C ($.0001 par value --
2 billion authorized) based on
295,902 outstanding shares 6,285
Portfolio Capital-Class Y ($.0001 par value --
2 billion authorized) based on
35,517,539 outstanding shares 440,019
Accumulated net investment loss (29,212)
Accumulated net realized gain on investments 88,908
Net unrealized appreciation of investments 419,997
Net unrealized depreciation of forward foreign
currency contracts, foreign currency and
translation of other assets and liabilities
in foreign currency (38)
------------
TOTAL NET ASSETS -- 100.0% $ 993,554
------------
Net asset value and redemption price per share -- Class A $ 24.47
Maximum sales charge of 5.25% (C) 1.36
------------
Offering price per share -- Class A $ 25.83
------------
Net asset value per share -- Class B (D) $ 23.67
------------
Net asset value per share -- Class C (E) $ 24.25
Maximum sales charge of 1.00% (F) 0.24
------------
Offering price per share -- Class C $ 24.49
------------
Net asset value, offering price, and redemption
price per share -- Class Y $ 24.51
------------
INTERNATIONAL 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) 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 calculated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%.
ADR--American Depositary Receipt
Cl--Class
GDR--Global Depositary Receipt
At March 31, 2000, sector diversification of the Portfolio was as follows:
% of
SECTOR DIVERSIFICATION NET ASSETS VALUE (000)
- ---------------------- ---------- -----------
FOREIGN COMMON STOCK
Electronics 12.3% $122,415
Cellular Telecommunications 12.0% 118,938
Semiconductors 10.2% 101,610
Telecommunication Equipment 8.6% 85,182
Telecommunication Services 7.2% 71,693
Computer Services 6.6% 65,094
Financial Services 5.3% 52,899
Internet Services 4.1% 40,408
Computers 4.1% 40,325
Multimedia 3.3% 32,985
Telephone 2.9% 29,085
Audio/Video 2.9% 28,647
Diversified Operations 2.2% 21,968
Biomedical 1.5% 15,291
Manufacturing 1.4% 13,819
Computer Software 1.1% 11,141
Real Estate 0.9% 9,142
Communications Software 0.8% 8,371
Insurance 0.8% 7,887
Banking 0.8% 7,765
Pharmaceuticals 0.6% 6,178
Security 0.6% 5,952
Photographic Equipment 0.5% 4,832
Engineering 0.5% 4,800
----- --------
TOTAL FOREIGN COMMON STOCK 91.2% 906,427
TOTAL FOREIGN PREFERRED STOCK 1.3% 13,122
TOTAL RELATED PARTY
MONEY MARKET FUND 5.7% 56,473
----- --------
TOTAL INVESTMENTS 98.2% 976,022
OTHER ASSETS AND
LIABILITIES, NET 1.8% 17,532
----- --------
NET ASSETS 100.0% $993,554
===== ========
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 43)
<PAGE>
STATEMENTS OF NET ASSETS MARCH 31, 2000 (UNAUDITED)
INTERNATIONAL INDEX FUND
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
FOREIGN COMMON STOCKS -- 94.7%
AUSTRALIA -- 1.9%
Amcor 18,082 $ 63
Boral* 13,213 18
Brambles Industries 5,692 145
Broken Hill Proprietary 26,847 291
Burns, Philp & Company* 15,097 4
Coca-Cola Amatil 21,218 53
Coles Myer 26,617 105
CSR 26,547 56
Fosters Brewing 46,622 116
Goodman Fielder 41,964 31
Lend Lease 12,594 163
MIM Holdings 2,632 2
National Australia Bank 29,706 382
Newcrest Mining* 21,543 43
News Corporation 39,293 550
North Limited 18,526 32
Orica 7,707 30
Origin Energy 13,213 11
Pacific Dunlop 34,457 33
Pioneer International 22,792 62
Rio Tinto 7,547 107
Santos 14,125 33
Southcorp Holdings 16,425 48
Westfield Trust 32,821 62
Westpac Banking 41,367 259
WMC 28,033 110
------------
2,809
------------
AUSTRIA -- 0.2%
Austrian Airlines 1,410 21
Bank Austria 1,386 67
BBAG Oest Brau-Beteiligungs 885 33
Flughafen Wien 772 29
Generale Holding Vienna 269 40
Oest Elektrizatswirts, Cl A 367 39
OMV 340 26
VA Technologie 539 34
Wienerberger Baustoffindustrie 2,048 42
------------
331
------------
BELGIUM -- 0.7%
Bekaert 870 42
Delhaize 1,220 66
Electrabel 1,159 306
Electrabel Strip* 300 --
Fortis, Cl B 8,388 215
Fortis Strip* 180 --
Groupe Bruxelles Lambert 641 136
KBC Bancassurance Holding 3,420 123
KBC Bancassurance Holding Strip* 70 --
Solvay 1,720 123
Union Miniere 428 15
------------
1,026
------------
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
CANADA -- 0.0%
Boliden* 781 $ 1
------------
DENMARK -- 0.9%
Carlsberg, Cl A 562 16
Carlsberg, Cl B 36 1
D/S 1912, Cl B 20 228
D/S Svendborg, Cl B 15 243
Danisco 1,429 46
Den Danske Bank 999 105
FLS Industries, Cl B 1,105 20
ISS International Service System, Cl B* 840 55
Novo-Nordisk, Cl B 1,311 177
Radiometer, Cl B 417 14
Tele Danmark, Cl B 3,972 357
Unidanmark, Cl A 1,148 74
------------
1,336
------------
FINLAND -- 3.4%
Kesko 1,700 23
Kone Cl B 300 17
Metra, Cl B 700 13
Nokia 22,600 4,772
Outokumpu 3,500 43
Sampo Insurance, Cl A 1,350 52
Sanitec 65 1
Stockmann, Cl A 1,200 18
Stora Enso, Cl A 2,546 27
Stora Enso, Cl R 4,433 47
UPM-Kymmene 5,740 162
------------
5,175
------------
FRANCE -- 9.5%
Accor 4,435 174
Air Liquide 1,947 270
Alcatel 2,878 631
Aventis 6,987 382
Axa 7,207 1,020
Banque Nationale de Paris, Cl A 3,482 274
BIC 1,500 61
Bouygues 751 594
Canal Plus 2,684 590
Carrefour Supermarche 6,156 788
Casino Guichard-Perrachon 1,550 140
Chargeurs 200 12
Compagnie de Saint Gobain 1,823 233
Danone 1,201 265
Eridania Beghin-Say 650 54
Gecina 264 27
L'Oreal 1,143 737
Lafarge 1,758 150
Lagardere SCA 2,210 179
Legrand 480 89
Louis Vuitton Moet Hennessy 1,609 672
Michelin, Cl B 3,273 105
Pernod Ricard 1,302 63
Peugeot Citroen 956 206
The accompanying notes are an integral part of the financial statements.
(44 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
Pinault-Printemps-Redoute 2,001 $ 370
Sadexho Alliance 900 140
Sagem - New 375 491
Sanofi-Synthelabo* 9,372 357
Schneider 2,781 177
Sidel 800 52
Simco 841 63
Societe Eurafrance 110 50
Societe Generale, Cl A 1,557 310
Suez Lyonnaise des Eaux 2,492 428
Suez Lyonnaise des Eaux (BE) 1,520 261
Suez Lyonnaise des Eaux Strip* 1,520 --
Thomson CSF 2,632 107
Total Fina 11,500 1,720
Total Fina (BE) 2,079 313
Total Fina Strip* 2,079 --
Unibail 250 33
Usinor 2,568 41
Valeo 1,778 87
Vivendi 13,143 1,513
------------
14,229
------------
GERMANY -- 8.2%
Adidas-Salomon 900 50
AGIV 880 16
Allianz, Registered 3,550 1,443
BASF 8,950 424
Bayer 10,150 455
Beiersdorf 1,250 88
Bilfinger & Berger Bau 1,200 18
Brau Und Brunnen* 150 5
Continental 3,100 56
DaimlerChrysler 9,919 648
Deutsche Bank 9,100 604
Deutsche Lufthansa, Registered 6,000 137
Deutsche Telekom 37,950 3,053
Deutz* 550 3
Dresdner Bank 8,000 325
Heidelberger Zement 995 56
Heidelberger Zement (BE)* 122 7
Hochtief 1,900 54
HypoVereinsbank 6,387 394
Karstadtquelle 1,000 31
Linde 1,500 64
MAN 2,500 91
Merck KGAA 2,800 89
Metro 4,184 167
Muenchener Rueckvers, Registered 2,650 851
Preussag 2,000 92
RWE 6,230 223
SAP 970 543
Schering 1,050 141
Siemens 8,720 1,254
Thyssen Krupp* 7,500 185
Veba 7,032 359
Viag 10,400 211
Volkswagen 5,000 218
------------
12,355
------------
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
HONG KONG -- 2.1%
Bank of East Asia 15,886 $ 35
Cable & Wireless HKT 180,839 474
Cathay Pacific Airways 54,000 80
Cheung Kong Holdings 33,000 494
Chinese Estates Holdings* 114,725 19
CLP Holdings 29,500 132
Hang Seng Bank 27,300 238
Hong Kong and China Gas 66,831 84
Hong Kong and Shanghai Hotels* 29,000 15
Hopewell Holdings 26,227 14
Hutchison Whampoa 54,000 974
Hysan Development 2,500 3
Miramar Hotel and Investment 19,000 16
Peregrine Investment Holdings* 13,000 --
Shangri-La Asia 38,000 43
Shun Tak Holdings 75,146 11
Sino Land 20,657 9
South China Morning Post Holdings 24,000 23
Sun Hung Kai Properties 34,000 295
Swire Pacific, Cl A 20,500 106
Television Broadcasts 10,000 89
Wharf Holdings 2,150 4
Wing Lung Bank 3,500 13
------------
3,171
------------
IRELAND -- 0.3%
Allied Irish Banks 15,732 153
Greencore Group 5,342 16
Independent Newspapers 2,515 25
Irish Life & Permanent 5,087 46
Jefferson Smurfit Group 29,615 69
Kerry Group 4,102 53
Waterford Wedgwood Units 22,614 21
------------
383
------------
ITALY -- 4.3%
Assicurazioni Generali 17,794 493
Banca Commerciale Italiana 36,000 164
Banca Intesa 12,000 41
Benetton Group 33,400 69
Beni Stabili* 24,747 11
Burgo (Cartiere) 2,000 13
Edison 10,000 104
ENI 141,725 708
Fiat 6,710 177
Fiat RNC 2,640 35
Immsi* 3,500 7
INA 75,794 156
Italcementi 11,232 99
Italgas 14,000 64
Mediaset 16,984 337
Mediobanca 8,000 65
Mondadori Editore 3,099 79
Montedison 51,740 90
Olivetti* 52,800 189
Parmalat Finanziaria 23,400 26
Pirelli* 31,000 80
Riunione Adriatica di Sicurta 12,150 112
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 45)
<PAGE>
STATEMENTS OF NET ASSETS MARCH 31, 2000 (UNAUDITED)
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
SAI 3,000 $ 23
San Paolo-IMI 24,747 338
Sirti 3,500 7
SNIA BPD 20,000 19
Telecom Italia 62,888 937
Telecom Italia Mobile 120,107 1,471
Telecom Italia Mobile RNC 31,894 152
Telecom Italia RNC 9,883 67
Unicredito Italiano 57,500 229
Unione Immobiliare 75,794 38
------------
6,400
------------
JAPAN -- 25.4%
77 Bank 8,000 57
Acom 1,700 184
Advantest 2,200 467
Ajinomoto 8,000 97
Alps Electric 3,000 41
Amada 5,000 40
Aoyama Trading 1,100 17
Asahi Bank 35,000 196
Asahi Breweries 7,000 70
Asahi Chemical Industry 19,000 121
Asahi Glass 16,000 136
Ashikaga Bank* 2,000 4
Bank of Tokyo-Mitsubishi 55,000 785
Bank of Yokohama 25,000 101
Bridgestone 10,000 220
Canon 11,000 476
Central Japan Railway 27 163
Chugai Pharmaceutical 5,000 94
Citizen Watch 1,000 8
Credit Saison 3,900 65
Dai Nippon Printing 11,000 178
Daicel Chemical Industries 10,000 34
Daiei* 16,000 57
Daiichi Pharmaceutical 7,000 108
Daikin Industries 4,000 74
Dainippon Ink & Chemicals 5,000 20
Dainippon Screen Manufacturing* 7,000 48
Daito Trust Construction 3,000 51
Daiwa House Industries 9,000 62
Daiwa Securities 16,000 301
Denki Kagaku Kogyo 13,000 49
Denso 17,000 405
East Japan Railway 47 243
Ebara 5,000 65
Eisai 5,000 132
Fanuc 3,100 325
Fuji Bank 42,000 394
Fuji Photo Film 6,000 264
Fujitsu 24,000 736
Furukawa Electric 8,000 134
Gunma Bank 13,000 71
Haseko* 15,000 6
Hitachi 39,000 463
Hokuriko Bank* 2,000 5
Honda Motor 12,000 495
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
House Foods 3,000 $ 44
Hoya 2,000 189
Industrial Bank of Japan 34,000 310
Isetan 2,000 18
Ito-Yokado 5,000 357
Itochu* 20,000 106
Japan Airlines 24,000 64
Japan Energy 39,000 34
Japan Tobacco 25 179
Joyo Bank 16,000 65
Jusco 6,000 90
Kajima 25,000 69
Kaneka 6,000 75
Kansai Electric Power 8,400 125
Kao 7,000 214
Kawasaki Kisen 24,000 42
Kawasaki Steel 44,000 74
Kinden 7,000 52
Kinki Nippon Railway 22,000 90
Kirin Brewery 13,000 159
Komatsu 16,000 76
Konica 3,000 14
Kubota 26,000 89
Kurita Water Industries 3,000 58
Kyocera 2,400 401
Kyowa Hakko Kogyo 7,000 79
Makita 4,000 35
Marubeni 24,000 90
Marui 5,000 90
Matsushita Electric 24,000 717
Meiji Milk Products 6,000 37
Meiji Seika 7,000 49
Mitsubishi 19,000 172
Mitsubishi Chemical 28,000 111
Mitsubishi Electric 26,000 245
Mitsubishi Estate 16,000 173
Mitsubishi Heavy Industries 43,000 135
Mitsubishi Materials 18,000 61
Mitsubishi Trust & Banking 18,000 167
Mitsui 19,000 153
Mitsui Fudosan Real Estate 11,000 105
Mitsui Marine and Fire Insurance 22,000 99
Mitsui Trust & Banking 17,000 23
Mori Seiki 2,000 33
Murata Manufacturing 3,000 728
Mycal 5,000 18
NEC 28,000 826
New Oji Paper 23,000 161
NGK Insulators 8,000 69
NGK Spark Plug 4,000 46
Nichido Fire & Marine Insurance 9,000 39
Nichirei 11,000 31
Nippon Express 22,000 163
Nippon Fire & Marine Insurance 8,000 20
Nippon Light Metal 35,000 31
Nippon Mitsubishi Oil 34,925 127
Nippon Paper Industries 13,000 93
Nippon Sheet Glass 22,000 223
The accompanying notes are an integral part of the financial statements.
(46 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
Nippon Shokubai 2,000 $ 9
Nippon Steel 103,000 246
Nippon Telegraph & Telephone 179 2,840
Nippon Yusen Kabushik 35,000 148
Nissan Motors* 17,000 69
Nissin Food Products 3,000 68
Nitto Denko 3,000 120
NKK* 80,000 51
Nomura Securities 32,000 1,043
NSK 7,000 52
NTN 2,000 6
Obayashi 17,000 62
Odakyu Railway 19,000 62
Okamato Industries 13,000 30
Olympus Optical 7,000 108
Omron 6,000 171
Orix 1,680 243
Osaka Gas 41,000 99
Penta-Ocean Construction 1,000 1
Pioneer Electronics 3,000 85
Rohm 3,000 1,042
Sakura Bank 50,000 380
Sankyo 7,000 176
Sanwa Shutter 9,000 27
Sanyo Electric 36,000 214
Sapporo Breweries 12,000 47
Secom 6,000 514
Sega Enterprises 2,000 41
Sekisui Chemical 13,000 43
Sekisui House 17,000 156
Sharp 17,000 363
Shimano 3,000 57
Shimizu 19,000 53
Shin-Etsu Chemical 7,000 424
Shiseido 8,000 109
Shizuoka Bank 14,000 119
Showa Denko* 37,000 49
Sony 14,200 2,004
Sumitomo 21,000 254
Sumitomo Bank 48,000 715
Sumitomo Chemical 16,000 87
Sumitomo Electric 15,000 211
Sumitomo Forestry 3,000 19
Sumitomo Marine & Fire Insurance 15,000 76
Sumitomo Metal* 65,000 51
Sumitomo Metal Mining 11,000 33
Taiheiyo Cement 25,000 42
Taisei 12,000 19
Taisho Pharmaceutical 7,000 241
Takara Shuzo 5,000 112
Takashimaya 7,000 57
Takeda Chemical Industries 18,000 1,279
Teijin 26,000 110
Toa 9,000 13
Tobu Railway 1,000 3
Toho 470 126
Tohoku Electric Power 10,600 136
Tokai Bank 25,000 151
Tokio Marine & Fire Insurance 27,000 277
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
Tokyo Broadcasting System 4,000 $ 158
Tokyo Electric Power 21,000 460
Tokyo Electron 3,000 453
Tokyo Gas 43,000 92
Tokyu 24,000 106
Toppan Printing 16,000 179
Toray 31,000 119
Tosho 35,000 171
Tostem 5,000 81
Toto 10,000 51
Toyo Seikan Kaisha 3,000 51
Toyobo 31,000 47
Toyoda Auto Loom 6,000 116
Toyota Motor 66,000 3,449
Ube Industries 39,000 88
Uniden Corportation 2,000 17
Yamaguchi Bank 4,000 28
Yamanouchi Pharmaceutical 7,000 383
Yamato Transport 8,000 229
Yamazaki Baking 5,000 48
Yasuda Trust & Banking 28,000 40
Yokogawa Electric 7,000 65
------------
37,979
------------
MALAYSIA -- 0.0%
Silverstone* 3,325 --
YTL 4,000 8
------------
8
------------
NETHERLANDS -- 5.0%
ABN AMRO Holding 24,956 555
Ahold 9,917 258
Akzo Nobel 5,564 237
Buhrmann 1,772 45
Elsevier 13,457 136
Getronics* 1,811 138
Heineken 6,143 328
ING Groep 16,419 888
Klm Royal Dutch Air 1,209 26
KPN 8,193 937
Philips Electronics 5,726 961
Royal Dutch Petroleum 36,924 2,152
TNT Post Group 9,193 206
Unilever 9,903 488
Vopak* 867 24
Wolters Kluwer 5,044 116
------------
7,495
------------
NEW ZEALAND -- 0.2%
Brierley Investments 66,325 13
Carter Holt Harvey 49,289 43
Fletcher Challenge Building 3,165 3
Fletcher Challenge Energy 4,794 11
Fletcher Challenge Forest* 19,179 5
Fletcher Challenge Paper 5,163 4
Lion Nathan 13,326 23
Telecom Corporation of New Zealand 33,302 150
------------
252
------------
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 47)
<PAGE>
STATEMENTS OF NET ASSETS MARCH 31, 2000 (UNAUDITED)
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
NORWAY -- 0.4%
Bergesen, Cl A 2,400 $ 43
CRH 10,134 182
Dyno Industrier 1,200 27
Hafslund, Cl A 3,850 17
Hafslund, Cl B 1,600 5
Kvaerner* 1,450 22
Norsk Hydro 5,650 213
Norske Skogindustrier 700 26
Orkla, Cl A 5,000 76
Petroleum Geo-Services* 1,000 18
Storebrand* 9,124 56
------------
685
------------
SINGAPORE -- 0.6%
Asia Food & Properties* 666 --
City Developments 9,000 41
Cycle & Carriage 7,000 19
DBS Group Holdings 12,211 161
DBS Land 20,000 26
Fraser & Neave 3,000 9
NatSteel 16,000 37
Overseas Chinese Banking 21,141 131
Singapore Airlines 22,000 206
Singapore Press Holdings 8,038 128
Singapore Telecommunications 111,000 158
United Industrial 77,000 32
United Overseas Bank 5,280 32
------------
980
------------
SPAIN -- 3.0%
Acerinox* 745 29
Altadis 3,315 44
Autopistas Concesionaria Espanola 5,150 48
Banco Bilbao Vizcaya 55,328 812
Banco Santander Central Hispano 68,232 732
Corporacion Financiera Alba 1,074 32
Corporacion Mapfre 94 2
Endesa 17,984 412
Fomento de Construcciones y Contratas 1,720 37
Gas Natural SDG 7,368 144
Iberdrola 15,705 205
Metrovacesa 2,124 35
Repsol 15,444 338
Telefonica* 56,004 1,413
Union Electrica Fenosa 4,413 91
Vallehermoso 2,745 18
Zardoya Otis 4,040 36
------------
4,428
------------
SWEDEN -- 3.4%
Atlas Copco, Cl A 3,220 78
Drott, Cl B 2,459 25
Electrolux, Cl B 8,955 169
Ericsson, Cl B 33,454 2,935
Hennes & Mauritz, Cl B 16,340 453
Skandia Forsakrings 10,330 488
Skandinaviska Enskilda Banken, Cl A 11,059 119
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
Skanska, Cl B 2,459 $ 83
SKF, Cl B 3,000 67
Svenska Cellulosa, Cl B* 4,410 104
Svenska Handlesbanken, Cl A 13,353 164
Swedish Match 20,354 63
Trelleborg, Cl B 2,000 14
Volvo, Cl A 3,737 97
Volvo, Cl B 5,915 159
------------
5,018
------------
SWITZERLAND -- 5.3%
ABB 2,755 316
Adecco, Bearer 321 222
Alusuisse Lonza Group, Registered 120 76
Credit Suisse Group, Registered 4,774 950
Holderbank Financiere Glarus, Bearer 141 168
Lonza* 120 65
Nestle, Registered 650 1,164
Novartis, Registered 1,205 1,647
Roche Holding, Bearer 24 296
Roche Holding, Genusscheine 116 1,259
SAirGroup, Registered 250 47
Schindler Holding, Participating Certificates 25 37
Schindler Holding, Registered 25 37
SGS Holding, Bearer* 52 102
SGS Holding, Registered* 1 --
Swatch Group, Bearer 56 65
Swatch Group, Registered 273 64
Swiss Reinsurance, Registered 262 454
UBS, Registered 3,666 963
Valora Holding, Registered 70 21
Zurich Allied, Registered 60 30
------------
7,983
------------
UNITED KINGDOM -- 19.9%
Abbey National 24,886 327
Allied Zurich 31,245 343
Anglian Water 6,007 50
Arjo Wiggins Appleton 21,135 55
Associated British Food 13,873 92
AstraZeneca Group 17,854 722
AstraZeneca Group (SK) 15,833 639
Barclays 24,874 658
Bass 16,415 206
BBA Group 9,021 59
BG Group 66,591 375
BICC Group 10,071 11
Blue Circle Industries 21,510 143
BOC Group 11,781 230
Boots 17,913 153
BP Amoco 212,006 1,936
BPB 11,171 56
British Aerospace 58,376 329
British Aerospace CALS 7,691 12
British Airways 13,920 73
British American Tobacco 31,245 172
British Sky Broadcasting 35,649 942
British Telecommunications 115,904 2,169
The accompanying notes are an integral part of the financial statements.
(48 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
Burmah Castrol 3,717 $ 91
Cadbury Schweppes 44,648 300
Caradon 15,828 35
Carlton Communications 13,900 168
Centrica 68,043 260
CGU 12,556 175
Coats Viyella 22,869 15
Coca-Cola Beverages* 21,218 38
Corus Group 60,009 97
De La Rue 5,595 24
Diageo 62,135 466
Electrocomponents 9,618 97
Elementis 8,335 13
EMI Group 14,007 155
GKN 9,305 116
Glaxo Wellcome 63,131 1,805
Granada Group 35,374 379
Great Universal Stores 20,164 122
Hammerson 10,193 65
Hanson 16,883 120
Hilton Group 33,285 155
HSBC Holdings 137,214 1,619
IMI 4,909 18
Imperial Chemical Industries 11,818 99
Invensys 36,987 164
J Sainsbury 34,011 153
Johnson Matthey 4,897 56
Kingfisher 23,084 189
Land Securities 2,531 30
Lasmo 21,742 42
Legal & General Group 101,228 262
Lloyds TSB 94,173 993
Lonrho 4,890 51
Marconi 56,794 677
Marks & Spencer 52,234 208
MEPC 12,784 85
National Grid Group 31,901 291
National Power 21,756 109
Next 6,829 51
Nycomed Amersham 258 2
Pearson 13,897 483
Peninsular and Oriental Steam Navigation 10,802 112
Pilkington 29,405 34
Provident Financial 5,269 47
Prudential 38,852 586
Racal Electronics 6,572 44
Rank Group 16,954 41
Reed International 22,618 165
Reuters Group 28,619 580
Rexam 12,784 44
Rio Tinto 20,309 340
RMC Group 6,560 81
Rolls-Royce 33,703 109
Royal & Sun Alliance Insurance Group 26,839 168
Royal Bank of Scotland Group 17,283 254
Safeway 23,210 70
Schroders 5,194 109
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION SHARES/PAR (000) VALUE (000)
- -------------------------------------------------------------------------------
Scottish & Newcastle 13,226 $ 92
Scottish Power 22,765 184
Selfridges 2,797 11
Slough Estates 9,571 53
SmithKline Beecham 97,428 1,285
Smiths Industries 6,601 80
Sun Life & Provincial Holdings 4,001 28
Tate & Lyle 10,382 36
Tesco 126,894 422
Thames Water 8,322 94
TI Group 10,548 52
Unilever 56,220 360
United Biscuits 13,488 56
United Utilities 11,993 125
Vodafone AirTouch 300,920 1,670
Vodafone AirTouch (EU)* 418,648 2,280
Williams 16,024 81
Wolseley 12,805 70
------------
29,793
------------
TOTAL FOREIGN COMMON STOCKS
(Cost $88,495) 141,837
------------
FOREIGN PREFERRED STOCKS -- 0.7%
AUSTRALIA -- 0.3%
News Corporation 35,455 420
------------
GERMANY -- 0.4%
RWE 250 7
SAP 710 511
Volkswagen 2,000 52
------------
570
------------
ITALY -- 0.0%
Fiat 3,190 47
------------
TOTAL FOREIGN PREFERRED STOCKS
(Cost $435) 1,037
------------
FOREIGN CONVERTIBLE BONDS -- 0.0%
SPAIN -- 0.0%
Banco Bilbao Viscaya
0.000%, 07/30/02 EU 12 12
------------
UNITED KINGDOM -- 0.0%
BG Transco Holdings (A)
7.057%, 12/14/09 GB 9 14
4.188%, 12/14/22 GB 9 14
BG Transco Holdings
7.000%, 12/16/24 GB 9 14
------------
42
------------
TOTAL FOREIGN CONVERTIBLE BONDS
(Cost $12) 54
------------
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 49)
<PAGE>
STATEMENTS OF NET ASSETS MARCH 31, 2000 (UNAUDITED)
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
FOREIGN WARRANTS -- 0.0%
FRANCE -- 0.0%
Vivendi, expire 05/02/2001* 19 $ --
------------
HONG KONG -- 0.0%
Chinese Estates Holdings, expire 11/24/2000* 10,429 --
------------
MALAYSIA -- 0.0%
United Engineers, expire 11/18/2002* 5,600 10
------------
SINGAPORE -- 0.0%
Asia Food & Properties, expire 07/12/2002* 2,900 --
------------
SWITZERLAND -- 0.0%
UBS, expire 06/30/2000* 195 3
------------
TOTAL FOREIGN WARRANTS
(Cost $0) 13
------------
FOREIGN RIGHTS -- 0.0%
CANADA -- 0.0%
Boliden* 781 --
------------
FRANCE -- 0.0%
Bouygues* 751 4
Lafarge* 1,758 --
------------
4
------------
TOTAL FOREIGN RIGHTS
(Cost $0) 4
------------
RELATED PARTY MONEY MARKET FUND -- 0.7%
First American Prime Obligations Fund (B) 1,016,313 1,016
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $1,016) 1,016
------------
TOTAL INVESTMENTS -- 96.1%
(Cost $89,958) 143,961
------------
OTHER ASSETS AND LIABILITIES, NET -- 3.9% 5,778
------------
INTERNATIONAL INDEX FUND (CONTINUED)
DESCRIPTION VALUE (000)
- -------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital-Class A ($.0001 par value --
2 billion authorized) based on
239,014 outstanding shares $ 2,525
Portfolio Capital-Class B ($.0001 par value --
2 billion authorized) based on
65,641 outstanding shares 809
Portfolio Capital-Class C ($.0001 par value --
2 billion authorized) based on
579 outstanding shares 8
Portfolio Capital-Class Y ($.0001 par value --
2 billion authorized) based on
9,731,900 outstanding shares 94,183
Distributions in excess of net investment income (976)
Accumulated net realized loss on investments (772)
Net unrealized appreciation of investments 54,003
Net unrealized depreciation of forward foreign
currency contracts, foreign currency and
translation of other assets and liabilities
in foreign currency (41)
------------
TOTAL NET ASSETS -- 100.0% $ 149,739
------------
Net asset value and redemption price per share -- Class A $ 14.87
Maximum sales charge of 5.25% (C) 0.82
------------
Offering price per share -- Class A $ 15.69
------------
Net asset value per share -- Class B (D) $ 14.81
------------
Net asset value per share -- Class C (E) $ 14.86
Maximum sales charge of 1.00% (F) 0.15
------------
Offering price per share -- Class C $ 15.01
------------
Net asset value, offering price, and redemption
price per share -- Class Y $ 14.92
------------
* 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, 2000.
(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.
(E) Class C has a contingent deferred sales charge. For a description of a
possible redemption charge, see the notes to the financial statements.
(F) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%.
BE--Brussels Exchange
CALS--Capital Amortizing Loan Stock
Cl--Class
EU--Euro
GB--Great British Pound
RNC--Risparmio Non-Convertible
SK--Swedish Krona
The accompanying notes are an integral part of the financial statements.
(50 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
INTERNATIONAL INDEX FUND (CONCLUDED)
- --------------------------------------------------------------------------------
At March 31, 2000, sector diversification of the Portfolio was as follows:
% of
SECTOR DIVERSIFICATION NET ASSETS VALUE (000)
- ---------------------- ---------- -----------
FOREIGN COMMON STOCK
Banking 11.5% $ 17,255
Telecommunications 10.4% 15,596
Telephone 7.9% 11,773
Pharmaceuticals 7.7% 11,457
Electronics 7.1% 10,657
Food, Beverage & Tobacco 6.1% 9,067
Oil & Gas 5.8% 8,678
Insurance 4.9% 7,291
Automotive 4.5% 6,689
Diversified Operations 4.3% 6,398
Chemicals 2.2% 3,308
Retail 2.1% 3,150
Audio/Video 1.9% 2,806
Television 1.8% 2,671
Financial Services 1.8% 2,651
Manufacturing 1.8% 2,624
Construction 1.7% 2,600
Computers 1.5% 2,256
Transportation 1.4% 2,165
Real Estate 1.2% 1,751
Mining 0.8% 1,205
Cosmetics & Toiletries 0.8% 1,148
Publishing 0.7% 1,053
Paper Products 0.6% 942
Wholesaler 0.5% 822
Recreation 0.5% 774
Metals 0.5% 734
Consumer Goods 0.5% 717
Airlines 0.4% 682
Machinery 0.4% 649
Engineering 0.3% 466
Defense 0.3% 450
Photographic Equipment 0.3% 386
Textiles 0.2% 372
Building Materials 0.2% 324
Commercial Services 0.1% 157
Water Treatment 0.0% 58
Agriculture 0.0% 53
Medical Supplies 0.0% 2
----- --------
TOTAL FOREIGN COMMON STOCK 94.7% 141,837
TOTAL FOREIGN PREFERRED STOCK 0.7% 1,037
TOTAL FOREIGN CONVERTIBLE BONDS 0.0% 54
TOTAL FOREIGN WARRANTS 0.0% 13
TOTAL FOREIGN RIGHTS 0.0% 4
TOTAL RELATED PARTY
MONEY MARKET FUND 0.7% 1,016
----- --------
TOTAL INVESTMENTS 96.1% 143,961
OTHER ASSETS AND
LIABILITIES, NET 3.9% 5,778
----- --------
NET ASSETS 100.0% $149,739
===== ========
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 51)
<PAGE>
STATEMENTS OF OPERATIONS for the six months ended March 31, 2000 (unaudited) in
thousands
<TABLE>
<CAPTION>
EMERGING INTERNATIONAL INTERNATIONAL
MARKETS FUND FUND INDEX FUND
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 90 $ 1,198 $ 31
Dividends 99 704 903
Less: Foreign taxes withheld (14) (97) (93)
- --------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 175 1,805 841
========================================================================================================
EXPENSES:
Investment advisory fees 385 5,112 507
Less: Waiver of investment advisory fees (54) (654) (168)
Administrator fees 33 445 79
Transfer agent fees 44 118 25
Custodian fees 31 409 72
Directors' fees 1 8 1
Registration fees 3 33 4
Professional fees 1 8 1
Printing 2 29 5
Pricing fees 1 12 2
Distribution fees - Class A 7 93 4
Distribution fees - Class B -- 37 5
Distribution fees - Class C -- 15 --
Other -- 4 15
- --------------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 454 5,669 552
========================================================================================================
Investment income (loss) - net (279) (3,864) 289
- --------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS (LOSSES)
ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS - NET:
Net realized gain (loss) on investments 7,613 89,203 (285)
Net realized loss on forward foreign currency contracts
and foreign currency transactions (131) (13,973) (12)
Net change in unrealized appreciation/depreciation of
investments 19,140 287,145 21,010
Net change in unrealized appreciation/depreciation of
forward foreign currency contracts, foreign currency
and translation of other assets and liabilities in
foreign currency (4) 2,660 (44)
- --------------------------------------------------------------------------------------------------------
NET GAIN ON INVESTMENTS 26,618 365,035 20,669
========================================================================================================
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $26,339 $ 361,171 $20,958
========================================================================================================
</TABLE>
The accompanying notes are an integral part of the financial statements.
(52 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS in thousands
<TABLE>
<CAPTION>
EMERGING INTERNATIONAL INTERNATIONAL
MARKETS FUND FUND INDEX FUND
- --------------------------------------------------------------------------------------------------------
10/1/99 10/1/98 10/1/99 10/1/98 10/1/99 10/1/98
to to to to to to
3/31/00 9/30/99 3/31/00 9/30/99 3/31/00 9/30/99
- --------------------------------------------------------------------------------------------------------
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Investment income (loss) - net $ (279) $ (132) $ (3,864) $ (2,221) $ 289 $ 1,462
Net realized gain (loss) on investments 7,613 (2,960) 89,203 37,390 (285) (344)
Net realized loss on forward foreign
currency contracts and foreign
currency transactions (131) (144) (13,973) (5,078) (12) (26)
Net change in unrealized
appreciation/depreciation
of investments 19,140 8,273 287,145 104,902 21,010 32,483
Net change in unrealized appreciation/
depreciation of forward foreign
currency contracts, foreign currency
and translation of other assets and
liabilities in foreign currency (4) 8 2,660 (2,768) (44) (25)
- --------------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations 26,339 5,045 361,171 132,225 20,958 33,550
- --------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Investment income - net: (1)See note 4 in the notes
Class A -- -- -- (209) (16) (37) to the financial
Class B -- -- -- -- (3) (3) statements for
Class C -- -- -- -- -- -- additional information.
Class Y -- -- -- (2,103) (784) (1,798) (2)Includes undistributed
Net realized gain on investments: losses of $(740) and
Class A -- -- (2,835) (2,619) -- (145) $(330) for Emerging
Class B -- -- (270) (172) -- (11) Markets Fund, an
Class C -- -- (76) -- -- -- undistributed loss of
Class Y -- -- (31,136) (20,724) -- (8,207) $(29,212) and
- -------------------------------------------------------------------------------------------------------- distribution in excess
Total distributions -- -- (34,317) (25,827) (803) (10,201) of net investment
- -------------------------------------------------------------------------------------------------------- income of $(11,375) for
CAPITAL SHARE TRANSACTIONS(1): International Fund, and
Class A: distributions in excess
Proceeds from sales 293 284 94,833 105,801 1,803 10,825 of net investment
Reinvestment of distributions -- -- 2,735 2,677 15 170 income of $(976) and
Payments for redemptions (1,410) (2,125) (69,482) (111,891) (2,165) (9,974) $(450) for
- -------------------------------------------------------------------------------------------------------- International Index
Increase (decrease) in net assets from Fund, as of March 31,
Class A transactions (1,117) (1,841) 28,086 (3,413) (347) 1,021 2000 and September 30,
- -------------------------------------------------------------------------------------------------------- 1999, respectively.
Class B:
Proceeds from sales 57 12 5,098 1,166 350 560
Reinvestment of distributions -- -- 266 169 3 14
Payments for redemptions (2) -- (576) (669) (200) (53)
- --------------------------------------------------------------------------------------------------------
Increase in net assets from Class B
transactions 55 12 4,788 666 153 521
- --------------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales 5 -- 5,683 940 8 --
Reinvestment of distributions -- -- 69 -- -- --
Payments for redemptions -- -- (362) (30) -- --
- --------------------------------------------------------------------------------------------------------
Increase in net assets from Class C
transactions 5 -- 5,390 910 8 --
- --------------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 7,196 32,241 159,564 162,038 1,707 6,825
Reinvestment of distributions -- -- 16,572 12,193 48 7,990
Payments for redemptions (6,641) (3,467) (105,282) (121,781) (8,018) (10,815)
- --------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class Y transactions 555 28,774 70,854 52,450 (6,263) 4,000
- --------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
capital share transactions (502) 26,945 109,118 50,613 (6,449) 5,542
- --------------------------------------------------------------------------------------------------------
Total increase in net assets 25,837 31,990 435,972 157,011 13,706 28,891
NET ASSETS AT BEGINNING OF PERIOD 44,819 12,829 557,582 400,571 136,033 107,142
========================================================================================================
NET ASSETS AT END OF PERIOD (2) $ 70,656 $ 44,819 $993,554 $557,582 $149,739 $136,033
========================================================================================================
</TABLE>
The accompanying notes are an integral part of the financial statements.
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 53)
<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>
EMERGING MARKETS FUND
Class A(1)
2000* (unaudited)(15) $ 6.77 $ (0.05) $ 4.03 $ -- $ -- $ --
1999(15) 5.61 (0.04) 1.20 -- -- --
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) -- -- --
Class B - FAIF(15)
2000* (unaudited) $ 6.72 $ (0.09) $ 4.00 $ -- $ -- $ --
1999(15) 5.60 (0.08) 1.20 -- -- --
1998(5) 7.27 -- (1.67) -- -- --
Class B - Piper
1998(6) $ 10.86 $ (0.08) $ (1.07) $ (0.02) $ -- $ --
1997(7) 10.13 -- 0.73 -- -- --
Class C
2000* (unaudited)(15)(16) $ 9.96 $ (0.02) $ 0.80 $ -- $ -- $ --
Class Y
2000* (unaudited)(15) $ 6.80 $ (0.04) $ 4.05 $ -- $ -- $ --
1999(15) 5.62 (0.02) 1.20 -- -- --
1998(5) 7.27 0.01 (1.66) -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL FUND
Class A
2000* (unaudited)(15) $ 15.64 $ (0.13) $ 9.91 $ -- $ (0.95) $ --
1999(15) 12.55 (0.10) 3.97 (0.06)(C) (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 -- -- --
Class B
2000* (unaudited)(15) $ 15.21 $ (0.20) $ 9.61 $ -- $ (0.95) $ --
1999(15) 12.27 (0.20) 3.86 -- (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 -- -- --
Class C
2000* (unaudited)(15) $ 15.57 $ (0.21) $ 9.84 $ -- $ (0.95) $ --
1999(8)(15) 14.32 (0.12) 1.37 -- -- --
Class Y
2000* (unaudited)(15) $ 15.65 $ (0.10) $ 9.91 $ -- $ (0.95) $ --
1999(15) 12.55 (0.06) 3.95 (0.07)(C) (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 -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL INDEX FUND(B)
Class A
2000* (unaudited)(15) $ 12.92 $ 0.01 $ 2.01 $ (0.07) $ -- $ --
1999(15) 10.69 0.10 3.13 (0.15) (0.85) --
1998(9) 10.94 0.11 (0.20) (0.16) -- --
1997(10) 12.32 0.05 (1.41) (0.02) -- --
1997(11) 10.64 0.10 1.70 (0.09) (0.02) (0.01)
1996(11) 10.45 0.07 0.17 (0.05) -- --
1995(11)(12) 10.00 -- 0.45 -- -- --
Class B
2000* (unaudited)(15) $ 12.89 $ (0.04) $ 2.01 $ (0.05) $ -- $ --
1999(15) 10.68 0.06 3.08 (0.08) (0.85) --
1998(9) 10.99 0.05 (0.21) (0.15) -- --
1997(13)(14) 11.08 -- (0.09) -- -- --
Class C
2000* (unaudited)(15)(16) $ 13.96 $ 0.01 $ 0.89 $ -- $ -- $ --
Class Y
2000* (unaudited)(15) $ 12.96 $ 0.03 $ 2.01 $ (0.08) $ -- $ --
1999(15) 10.71 0.14 3.14 (0.18) (0.85) --
1998(9) 10.99 0.14 (0.20) (0.22) -- --
1997(10) 12.37 0.06 (1.41) (0.03) -- --
1997(11) 10.69 0.13 1.70 (0.12) (0.02) (0.01)
1996(11) 10.48 0.09 0.18 (0.06) -- --
1995(11)(12) 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
Incorporated 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.
(54 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
<TABLE>
<CAPTION>
RATIO OF RATIO OF
RATIO OF NET EXPENSES TO NET INCOME
NET ASSET RATIO OF INVESTMENT AVERAGE TO AVERAGE
VALUE NET ASSETS EXPENSES TO INCOME (LOSS) NET ASSETS NET ASSETS PORTFOLIO
END OF TOTAL END OF AVERAGE TO AVERAGE (EXCLUDING (EXCLUDING TURNOVER
PERIOD RETURN (A) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 10.75 58.79%+ $ 5,752 1.70% (1.13)% 1.88% (1.31)% 66%
6.77 20.68 4,551 1.70 (0.54) 2.02 (0.86) 138
5.61 (48.91) 5,384 1.96 (1.09) 3.43 (2.56) 48
10.96 23.91 16,998 2.00 0.17 3.34 (1.17) 105
8.85 0.11+ 13,772 2.00 0.26 4.09 (1.83) 0
8.84 22.78 13,936 2.00 0.26 3.54 (1.28) 140
7.20 (21.23) 22,624 2.00 0.15 3.47 (1.32) 161
$ 10.63 58.18%+ $ 75 2.45% (1.75)% 2.64% (1.94)% 66%
6.72 20.00 13 2.45 (1.19) 2.72 (1.46) 138
5.60 (22.97)+ 1 2.46 (0.43) 4.30 (2.27) 48
$ 9.69 (10.59)%+ $ -- 2.76% (2.24)% 4.12% (3.60)% 34%
10.86 7.21 310 2.64 0.03 3.39 (0.72) 105
$ 10.74 7.83%+ $ 5 2.45% (0.98)% 2.65% (1.18)% 66%
$ 10.81 58.97%+ $ 64,823 1.45% (0.88)% 1.62% (1.05)% 66%
6.80 21.00 40,255 1.45 (0.35) 1.73 (0.63) 138
5.62 (22.70)+ 7,444 1.46 0.83 3.30 (1.01) 48
- ---------------------------------------------------------------------------------------------------------------------
$ 24.47 64.67%+ $104,130 1.60% (1.15)% 1.76% (1.31)% 52%
15.64 32.16 48,154 1.60 (0.71) 1.76 (0.87) 150
12.55 1.11 40,204 1.69 0.13 1.81 0.01 102
13.18 30.03 8,003 1.92 (0.09) 1.92 (0.09) 96
10.28 1.84 1,964 1.97 (0.28) 1.97 (0.28) 100
10.28 0.69 876 1.93 (0.13) 2.06 (0.26) 57
$ 23.67 64.04%+ $ 11,671 2.35% (1.88)% 2.51% (2.04)% 52%
15.21 31.06 4,338 2.35 (1.46) 2.51 (1.62) 150
12.27 0.13 2,892 2.44 (0.64) 2.56 (0.76) 102
12.97 29.13 2,188 2.67 (0.94) 2.67 (0.94) 96
10.14 1.02 1,175 2.72 (0.96) 2.72 (0.96) 100
10.20 (0.10) 306 2.76 (0.95) 2.81 (1.00) 57
$ 24.25 63.97%+ $ 7,176 2.35% (1.82)% 2.52% (1.99)% 52%
15.57 8.73+ 1,009 2.35 (1.22) 2.53 (1.40) 150
$ 24.51 64.83%+ $870,577 1.35% (0.91)% 1.51% (1.07)% 52%
15.65 32.40 504,081 1.35 (0.44) 1.51 (0.60) 150
12.55 1.15 357,475 1.44 0.42 1.56 0.30 102
13.23 30.38 217,414 1.67 0.06 1.67 0.06 96
10.31 2.11 135,238 1.72 (0.06) 1.72 (0.06) 100
10.30 0.78 94,400 1.74 0.12 1.81 0.05 57
- ---------------------------------------------------------------------------------------------------------------------
$ 14.87 15.66%+ $ 3,555 1.00% 0.19% 1.24% (0.05)% 0%
12.92 31.70 3,437 1.00 0.83 1.25 0.58 0
10.69 (1.05)+ 1,873 0.99 1.21 1.22 0.98 0
10.94 (11.03)+ 1,270 0.92 0.98 1.21 0.69 0
12.32 17.03 1,605 0.98 0.90 1.28 0.60 3
10.64 2.29 2,005 1.06 0.84 1.35 0.55 6
10.45 4.50+ 20 1.40 0.23 1.54 0.09 0
$ 14.81 15.29%+ $ 972 1.75% (0.57)% 1.98% (0.80)% 0%
12.89 30.66 700 1.75 0.41 2.01 0.15 0
10.68 (1.53)+ 118 1.74 0.72 1.97 0.49 0
10.99 (0.36)+ 1 1.29 0.00 1.29 0.00 0
$ 14.86 6.45%+ $ 8 1.75% 0.33% 1.95% 0.13% 0%
$ 14.92 15.76%+ $145,204 0.75% 0.41% 0.98% 0.18% 0%
12.96 32.00 131,896 0.75 1.16 1.00 0.91 0
10.71 (0.73)+ 105,151 0.74 1.42 0.97 1.19 0
10.99 (10.93)+ 155,976 0.66 1.23 0.95 0.94 0
12.37 17.24 210,538 0.73 1.15 1.03 0.85 3
10.69 2.56 142,478 0.81 1.18 1.10 0.89 6
10.48 4.80+ 60,073 1.18 1.32 1.39 1.11 0
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
(4) For the period ended June 30.
(5) Class Y and Class B shares have been offered since August 10, 1998. All
ratios for the period have been annualized.
(6) 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.
(7) Class B shares have been offered since February 18, 1997. All ratios for the
period have been annualized.
(8) For the period ended September 30. Class C shares have been offered since
February 1, 1999. All ratios for the period have been annualized.
(9) 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.
(10)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.
(11)For the period ended July 31.
(12)Commenced operations on July 3, 1995. All ratios for the period have been
annualized.
(13)Class B shares have been offered since November 24, 1997. All ratios for
the period have been annualized.
(14)For the period November 24, 1997 to November 30, 1997.
(15)Per share data calculated using average shares outstanding method.
(16)Commenced operations February 1, 2000. All ratios for the period have been
annualized.
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 55)
<PAGE>
STATEMENTS OF NET ASSETS MARCH 31, 2000 (UNAUDITED)
HEALTH SCIENCES FUND
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
COMMON STOCKS -- 91.0%
HEALTH CARE -- 91.0%
BIOTECHNOLOGY -- 11.7%
Amgen* 10,000 $ 614
Arqule* 2,900 39
Cephalon* 2,300 86
Diversa 700 33
Enzon* 4,400 166
Human Genome Sciences 800 66
IDEC Pharmaceuticals* 700 69
ILEX Oncology* 2,000 84
Immunex* 1,350 86
Invitrogen* 3,100 180
Luminex* 4,400 95
MedImmune* 3,000 522
Millennium Pharmaceutical* 400 52
Protein Design Laboratories* 600 47
------------
2,139
------------
COMPUTER SERVICES AND SOFTWARE -- 0.8%
PE Corp-Celera Genomics Group 300 27
TriZetto Group* 3,300 115
------------
142
------------
DATA PROCESSING -- 1.2%
Medquist* 8,300 226
------------
DIVERSIFIED HEALTH CARE -- 20.3%
Abbott Laboratories 8,100 285
Allergan 5,800 290
American Home Products 10,900 585
Bristol-Myers Squibb 13,200 762
Johnson & Johnson 12,351 865
Warner Lambert 10,600 1,034
------------
3,821
------------
DRUGS -- 27.4%
Alza, Cl A* 7,700 289
Celgene* 1,000 100
Cell Therapeutics* 4,600 108
Genentech* 700 106
Inhale Therapeutic Systems* 1,000 75
Merck 22,300 1,385
OraPharma* 2,100 39
Penwest Pharmaceuticals* 10,400 128
Pfizer 26,800 980
Pharmacia & Upjohn 9,300 551
QLT Phototherapeutics 4,000 221
Schering Plough 12,900 474
Sepracor* 1,300 95
Teva Pharmaceutical Industries, ADR 4,600 172
Viropharma* 3,000 184
Watson Pharmaceuticals* 6,300 250
------------
5,157
------------
HEALTH SCIENCES FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
FOOD AND HEALTH DISTRIBUTIONS -- 2.0%
Allscripts* 1,800 $ 108
Cardinal Health 5,900 271
------------
379
------------
HOSPITAL MANAGEMENT -- 1.8%
Health Management Associates, Cl A* 9,000 128
Tenet Healthcare* 9,300 214
------------
342
------------
MANAGED CARE -- 0.9%
Express Scripts, Cl A 3,900 165
------------
MEDICAL ELECTRONICS -- 3.0%
Chromavision Medical Systems* 5,000 76
Cytyc 5,900 285
Molecular Devices* 1,200 92
PE Corp-PE Biosystems Group 800 77
------------
530
------------
MEDICAL PRODUCTS AND SUPPLIES -- 20.4%
Affymetrix* 900 134
ATS Medical* 25,475 283
Bausch & Lomb 5,700 297
Baxter International 11,000 719
Becton Dickinson 7,200 189
Biomet* 9,200 335
Boston Scientific* 18,000 384
Cooper Companies 3,800 122
Guidant* 9,200 541
LJL Biosystems* 2,200 40
Medtronic 15,600 802
Mentor 800 22
------------
3,868
------------
SPECIAL SERVICES -- 1.5%
Nanogen* 2,000 68
Renal Care* 5,000 108
Quest Diagnostic* 2,500 99
------------
275
------------
TOTAL HEALTH CARE 17,044
------------
TOTAL COMMON STOCKS
(Cost $16,393) 17,044
------------
RELATED PARTY MONEY MARKET FUND -- 8.3%
First American Prime Obligations Fund (A) 1,553,467 1,554
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $1,554) 1,554
------------
TOTAL INVESTMENTS -- 99.3%
(Cost $17,947) 18,598
------------
OTHER ASSETS AND LIABILITIES, NET -- 0.7% (B) 138
------------
The accompanying notes are an integral part of the financial statements.
(56 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
HEALTH SCIENCES FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- -------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares -- Class A ($0.0001 par value --
2 billion authorized) based on
280,684 outstanding shares $ 3,162
Portfolio Shares -- Class B ($0.0001 par value --
2 billion authorized) based on
252,041 outstanding shares 2,364
Portfolio Shares -- Class C ($0.0001 par value --
2 billion authorized) based on
38,636 outstanding shares 411
Portfolio Shares -- Class Y ($0.0001 par value --
2 billion authorized) based on
1,268,601 outstanding shares 8,853
Distributions in excess of net investment income (7)
Accumulated net realized gain on investments 3,302
Net unrealized appreciation of investments 651
------------
TOTAL NET ASSETS -- 100.0% $ 18,736
------------
Net asset value and redemption price per share -- Class A $ 10.12
Maximum sales charge of 5.25% (C) 0.56
------------
Offering price per share -- Class A $ 10.68
------------
Net asset value and offering price per share -- Class B (D) $ 9.82
------------
Net asset value and redemption price
per share -- Class C (E) $ 10.11
Maximum sales charge of 1.00% (F) 0.10
------------
Offering price per share -- Class C $ 10.21
------------
Net asset value, offering price, and redemption
price per share -- Class Y $ 10.17
------------
* 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 $3,973
Payable upon return of securities on loan $(3,973)
(C) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 5.25%.
(D) Class C 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
REAL ESTATE SECURITIES FUND
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
COMMON STOCKS -- 95.0%
REAL ESTATE INVESTMENT TRUSTS -- 95.0%
DIVERSIFIED -- 9.4%
Colonial Properties Trust 35,000 $ 831
Cousins Properties 24,200 891
Crescent Real Estate Equities 85,000 1,487
Vornado Realty Trust 45,500 1,524
------------
4,733
------------
FINANCIAL SERVICES -- 1.2%
Anthracite Mortgage Capital 90,000 641
------------
HOTELS -- 3.7%
Hospitality Properties Trust 45,000 911
Lasalle Hotel Properties 19,000 238
Meristar Hospitality 40,800 711
------------
1,860
------------
OFFICE/INDUSTRIAL -- 38.4%
Alexandria Real Estate Equities 20,000 600
Amb Property 55,000 1,183
Arden Realty Group 40,500 845
Beacon Capital Partnership* (A) 33,750 692
Boston Properties 44,500 1,416
Brandywine Realty Trust 31,500 539
Centerpoint Properties 19,000 692
Cornerstone Properties 48,400 844
Duke Realty Investments 112,400 2,150
Equity Office Properties Trust 125,400 3,151
First Industrial Realty Trust 38,400 1,046
HRPT Properties Trust 40,000 347
Liberty Property Trust 29,700 711
Mack Cali Realty 30,000 765
Parkway Properties 18,000 530
Prologis Trust 72,000 1,386
SL Green Realty 31,500 748
Spieker Properties 40,000 1,780
------------
19,425
------------
RESIDENTIAL -- 22.8%
Apartment Investment & Management 31,300 1,195
Archstone Community Trust 71,900 1,434
Avalonbay Communities 45,900 1,681
Charles E. Smith Residential Realty 16,000 578
Chateau Communities 28,800 734
Equity Residential Properties Trust 62,700 2,520
Essex Property Trust Inc. 25,000 900
Gables Residential Trust 12,000 270
Home Properties of New York 31,500 843
Post Properties 22,100 891
Summit Properties 23,500 449
------------
11,495
------------
RETAIL -- 14.3%
CBL & Associates Properties 25,000 511
Excel Legacy* 27,100 91
Federal Realty Investment Trust 26,000 502
First Washington Realty Trust 17,500 325
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 57)
<PAGE>
STATEMENTS OF NET ASSETS MARCH 31, 2000 (UNAUDITED)
REAL ESTATE SECURITIES FUND (CONTINUED)
DESCRIPTION SHARES/PAR (000) VALUE (000)
- -------------------------------------------------------------------------------
JP Realty 25,000 $ 445
Kimco Realty 33,800 1,268
Macerich 25,000 516
Pan Pacific Retail Properties 31,500 581
Philips International Realty 38,200 635
Simon Property Group 85,000 2,040
Taubman Centers 26,000 289
------------
7,203
------------
SELF STORAGE -- 1.8%
Storage USA 30,000 919
------------
SPECIALTY REAL ESTATE -- 3.4%
Capital Automotive 45,000 540
Fortress Investment* (A) 35,000 468
Franchise Finance of America 30,000 698
------------
1,706
------------
TOTAL REAL ESTATE INVESTMENT
TRUSTS 47,982
------------
TOTAL COMMON STOCKS
(Cost $50,526) 47,982
------------
PREFERRED STOCKS -- 0.3%
Cypress 6,019 --
Wyndham International*(B) 1,548 152
------------
TOTAL PREFERRED STOCKS
(Cost $25) 152
------------
CONVERTIBLE BOND -- 1.8%
Avatar Holdings, 31.4465 shares
7.000%, 04/01/05 1,000 890
------------
TOTAL CONVERTIBLE BOND
(Cost $1,028) 890
------------
RELATED PARTY MONEY MARKET FUND -- 2.4%
First American Prime Obligations Fund (C) 1,200,511 1,201
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $1,201) 1,201
------------
TOTAL INVESTMENTS -- 99.5%
(Cost $52,779) 50,225
------------
OTHER ASSETS AND LIABILITIES, NET -- 0.5% (D) 275
------------
REAL ESTATE SECURITIES FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- -------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital -- Class A ($0.0001 par value --
2 billion authorized) based on
122,872 outstanding shares $ 1,693
Portfolio Capital -- Class B ($0.0001 par value --
2 billion authorized) based on
159,013 outstanding shares 2,265
Portfolio Capital -- Class C ($0.0001 par value --
2 billion authorized) based on
1,163 outstanding shares 12
Portfolio Capital -- Class Y ($0.0001 par value --
2 billion authorized) based on
4,439,356 outstanding shares 57,382
Accumulated net investment loss (360)
Accumulated net realized loss on investments (7,938)
Net unrealized depreciation of investments (2,554)
------------
TOTAL NET ASSETS -- 100.0% $ 50,500
------------
Net asset value and redemption price per share -- Class A $ 10.71
Maximum sales charge of 5.25% (E) 0.59
------------
Offering price per share -- Class A $ 11.30
------------
Net asset value and offering price per share -- Class B (F) $ 10.62
------------
Net asset value and redemption price
per share -- Class C (G) $ 10.70
Maximum sales charge of 1.00% (H) 0.11
------------
Offering price per share -- Class C $ 10.81
------------
Net asset value, offering price, and redemption
price per share -- Class Y $ 10.73
------------
* 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) Private Placement Securities considered illiquid investments under
guidelines established by the Board of Directors.
(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 $7,964
Payable upon return of securities on loan $(7,964)
(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 calcluated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%.
The accompanying notes are an integral part of the financial statements.
(58 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
TECHNOLOGY FUND
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
COMMON STOCKS -- 99.5%
TECHNOLOGY -- 82.8%
ADVERTISING AND MARKETING SERVICES -- 2.0%
Digital Impact* 100,000 $ 3,556
Forrester Research* 116,300 6,309
Internet Capital Group* 37,900 3,423
Lifeminders.com* 42,900 2,912
ValueClick* 3,600 75
------------
16,275
------------
COMMERCIAL AND CONSUMER SERVICES -- 2.4%
China.com, Cl A* 9,600 778
Crown Castle International* 53,800 2,038
Digital Island* 57,800 3,522
Digitas* 127,700 3,129
Skillsoft* 107,500 3,124
St Assembly Test Service, ADR* 141,600 6,868
------------
19,459
------------
COMPUTER HARDWARE -- 7.7%
Brocade Communications Systems* 130,000 23,311
Copper Mountain Networks* 59,600 4,883
Dell Computer* 363,600 19,612
Palm* 13,800 619
Sun Microsystems* 105,000 9,839
Tricord Systems* 338,500 3,237
------------
61,501
------------
COMPUTER NETWORKING -- 4.8%
Cisco Systems* 350,000 27,059
Eprise* 13,900 219
Etinuum* 84,200 800
Integrated Information Systems* 150,000 3,270
Loudeye Technologies* 32,300 1,126
Telocity* 140,800 1,742
3Com* 60,200 3,349
Websense* 8,500 409
------------
37,974
------------
COMPUTER SOFTWARE AND SERVICES -- 42.5%
Active Software* 42,700 2,716
Akamai Technologies* 27,000 4,342
Allaire* 40,000 3,025
America Online* 265,500 17,855
Apropos Technology* 101,000 3,737
Ariba* 14,100 2,956
B2bstores.com* 31,250 313
Be Free* 80,000 1,760
BEA Systems* 80,000 5,870
Chordiant Software* 199,700 3,245
Clarent* 47,800 4,311
Commerce One* 17,500 2,612
Digex* 62,800 6,967
Digimarc* 55,100 2,424
DSET* 150,000 2,766
TECHNOLOGY FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
DSL.net* 226,100 $ 4,988
eBay* 120,000 21,120
Egain Communication* 90,000 3,510
El Sitio* 150,000 3,216
Fairmarket* 110,400 2,512
Foundry Networks* 24,300 3,493
GRIC Communications* 120,800 4,077
J.D. Edwards & Company* 130,000 4,233
Internap Network Services* 120,400 5,538
Interwoven* 25,000 2,744
IntraNet Solutions* 53,400 2,456
Legato Systems* 160,000 7,140
Liberate Technologies* 49,800 3,125
Lightspan Partnership* 199,600 3,543
Liquid Audio* 72,700 963
Metasolv Software* 65,800 3,886
Microsoft* 245,700 26,106
Net Perceptions* 75,000 2,770
NetObjects* 141,000 3,208
Network Solutions* 86,100 13,234
ONYX Software* 135,300 4,313
Oracle Systems* 294,800 23,013
Peregrine Systems* 130,000 8,718
Pfsweb* 120,700 1,931
Portal Software* 75,800 4,316
Preview Systems* 50,000 2,366
Primus Knowledge Solutions* 51,400 4,420
Purchasepro.com* 30,900 2,240
Quest Software* 16,400 1,849
Sagent Technology* 107,500 3,097
SalesLogix* 160,000 4,330
Sciquest.com* 36,100 930
Selectica* 13,300 1,174
Serena Software* 150,000 4,781
724 Solutions* 36,900 4,594
Siebel Systems* 70,000 8,361
Sybase* 355,000 7,211
Telemate.Net Software* 150,000 1,800
TenFold* 92,500 5,596
USInternetworking* 110,700 4,290
Vignette* 67,700 10,849
Visual Networks* 109,400 6,208
Vitria Technology* 14,200 1,432
Watchguard Technologies* 140,000 12,600
Wink Communications* 143,100 4,776
Witness Systems* 227,700 6,916
Yahoo* 46,500 7,969
Zamba* 242,400 2,538
------------
339,379
------------
COMPUTER SYSTEM SERVICES -- 0.9%
Marchfirst* 103,800 3,704
Netegrity* 52,400 3,589
------------
7,293
------------
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 59)
<PAGE>
STATEMENTS OF NET ASSETS MARCH 31, 2000 (UNAUDITED)
TECHNOLOGY FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
ELECTRONIC COMPONENT DISTRIBUTION -- 0.3%
Viasystems* 152,800 $ 2,368
------------
ELECTRONIC SEMICONDUCTORS -- 15.1%
Actel* 62,100 2,216
Broadcom, Cl A* 59,400 14,427
Chartered Semiconductor Manufacturing, ADR* 108,600 10,236
E-Tek Dynamics* 20,000 4,705
Fairchild Semiconductor, Cl A* 90,000 3,285
Intel 174,600 23,036
Intersil Holding* 80,100 4,140
JDS Uniphase* 111,000 13,382
Kopin* 11,900 818
Maxim Integrated Products* 120,000 8,527
Metalink* 56,200 2,157
Psi Technologies, ADR* 2,800 47
QLogic* 45,000 6,098
RF Micro Devices* 65,300 8,775
Silicon Laboratories* 6,700 593
Taiwan Semiconductor, ADR* 165,000 9,405
Xilinx* 100,000 8,281
------------
120,128
------------
EQUIPMENT SEMICONDUCTORS -- 6.7%
Applied Materials* 158,680 14,956
ASM Lithography Holding H.V.* 65,000 7,264
FSI International* 250,000 5,125
Insilicon* 41,900 663
KLA-Tencor* 109,200 9,200
Lam Research* 179,700 8,098
Teradyne* 95,600 7,863
------------
53,169
------------
FINANCIALS -- 0.2%
Frontline Capital* 30,000 1,320
------------
SPECIALTY PRINTING -- 0.2%
Iprint.com* 77,700 1,496
------------
TOTAL TECHNOLOGY 660,362
------------
COMMUNICATION EQUIPMENT -- 8.4%
Audiovox, Cl A* 65,900 2,875
BreezeCom* 14,100 527
Commtouch Software* 86,300 4,061
Comverse Technology* 20,000 3,780
Efficient Networks* 43,500 6,775
Interwave Communications International* 62,600 1,886
Motorola 103,500 14,736
Natural MicroSystems* 60,300 5,171
Nokia, ADR 70,000 15,207
Pairgain Technologies* 300,000 5,606
RADVision* 13,500 707
Sonicwall* 20,400 1,359
Turnstone Systems* 40,000 4,600
------------
67,290
------------
TECHNOLOGY FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------------------
LONG DISTANCE TELEPHONE -- 6.9%
Allegiance Telecommunications* 75,000 $ 6,047
Covad Communications Group* 85,200 6,177
Cypress Communications* 175,000 4,288
Deltathree.com, Cl A* 133,800 2,801
Itxc* 69,900 3,290
Ibasis* 50,300 2,065
MCI WorldCom* 201,500 9,130
MGC Communications* 28,000 2,002
Network Plus* 50,800 2,057
Primus Telecommunications* 174,700 9,030
Tele1 Europe Holding AB, ADR 20,200 386
Time Warner Telecommunications, Cl A* 13,100 1,041
Z-Tel Technologies* 150,000 6,300
------------
54,614
------------
HOME SHOPPING RETAIL -- 0.3%
Drugstore.com* 202,500 2,670
------------
RETAIL STORES - FOOD CHAINS -- 0.3%
Homegrocer.com* 248,600 2,579
------------
TV, RADIO AND CABLE BROADCASTING -- 0.8%
TV Guide* 133,300 6,407
------------
TOTAL COMMON STOCKS
(Cost $585,905) 793,922
------------
WARRANTS -- 0.0%
Optisystems* 100,000 381
------------
TOTAL WARRANTS
(Cost $71) 381
------------
RELATED PARTY MONEY MARKET FUND -- 0.8%
First American Prime Obligations Fund (A) 6,555,481 6,555
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $6,555) 6,555
------------
TOTAL INVESTMENTS -- 100.4%
(Cost $592,531) 800,858
------------
OTHER ASSETS AND LIABILITIES, NET -- (0.4%) (B) (3,234)
------------
The accompanying notes are an integral part of the financial statements.
(60 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
TECHNOLOGY FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- -------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital -- Class A ($0.0001 par value --
2 billion authorized) based on
2,489,088 outstanding shares $ 110,835
Portfolio Capital -- Class B ($0.0001 par value --
2 billion authorized) based on
1,792,844 outstanding shares 66,951
Portfolio Capital -- Class C ($0.0001 par value --
2 billion authorized) based on
206,352 outstanding shares 12,983
Portfolio Capital -- Class Y ($0.0001 par value --
2 billion authorized) based on
8,429,704 outstanding shares 188,573
Distributions in excess of net investment income (2,014)
Accumulated net realized gain on investments 211,969
Net unrealized appreciation of investments 208,327
------------
TOTAL NET ASSETS -- 100.0% $ 797,624
------------
Net asset value and redemption price per share -- Class A $ 61.64
Maximum sales charge of 5.25% (C) 3.42
------------
Offering price per share -- Class A $ 65.06
------------
Net asset value and offering price per share -- Class B (D) $ 57.59
------------
Net asset value and redemption price
per share -- Class C (E) $ 61.63
Maximum sales charge of 1.00% (F) 0.62
------------
Offering price per share -- Class C $ 62.25
------------
Net asset value, offering price, and redemption price
per share -- Class Y $ 62.68
------------
* 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 $211,103
Payable upon return of securities on loan $(211,103)
(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
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 61)
<PAGE>
STATEMENTS OF OPERATIONS for the six months ended March 31, 2000 (unaudited) in
thousands
<TABLE>
<CAPTION>
HEALTH SCIENCES REAL ESTATE TECHNOLOGY
FUND SECURITIES FUND FUND
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 22+ $ 83+ $ 564+
Dividends 57 1,824 99
- ---------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 79 1,907 663
=========================================================================================================
EXPENSES:
Investment advisory fees 57 180 1,816
Less: Waiver of investment advisory fees (20) (40) (1)
Administrator fees 9 28 282
Transfer agent fees 23 23 56
Custodian fees 2 8 77
Directors' fees -- 1 5
Registration fees 1 2 23
Professional fees -- 1 5
Printing 1 2 18
Distribution fees - Class A 3 2 92
Distribution fees - Class B 8 9 280
Distribution fees - Class C -- -- 11
Other 1 2 10
- ---------------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 85 218 2,674
=========================================================================================================
Investment income (loss) - net (6) 1,689 (2,011)
- ---------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS (LOSSES)
ON INVESTMENTS - NET:
Net realized gain (loss) on investments 3,487 (4,505) 225,156
Net change in unrealized appreciation/depreciation of
investments (215) 4,401 131,133
- ---------------------------------------------------------------------------------------------------------
NET GAIN (LOSS) ON INVESTMENTS 3,272 (104) 356,289
=========================================================================================================
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $3,266 $ 1,585 $354,278
=========================================================================================================
</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.
(62 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS in thousands
<TABLE>
<CAPTION>
HEALTH REAL ESTATE TECHNOLOGY
SCIENCES FUND SECURITIES FUND FUND
- ---------------------------------------------------------------------------------------------------------
10/1/99 10/1/98 10/1/99 10/1/98 10/1/99 10/1/98
to to to to to to
3/31/00 9/30/99 3/31/00 9/30/99 3/31/00 9/30/99
- ---------------------------------------------------------------------------------------------------------
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Investment income (loss) - net $ (6) $ 62 $ 1,689 $ 3,642 $ (2,011) $ (1,131)
Net realized gain (loss) on investments 3,487 873 (4,505) (2,768) 225,156 75,918
Net change in unrealized appreciation/
depreciation of investments (215) 717 4,401 (4,255) 131,133 64,625
- ---------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 3,266 1,652 1,585 (3,381) 354,278 139,412
- ---------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A -- (2) (50) (103) (2) --
Class B -- -- (60) (135) -- --
Class C -- -- -- -- --
Class Y (1) (69) (1,920) (3,471) (1) --
Net realized gain on investments:
Class A -- (5) -- -- (7,867) (394)
Class B -- (3) -- -- (7,759) (372)
Class C -- -- -- -- -- --
Class Y -- (103) -- -- (70,350) (4,508)
Tax return of capital:
Class A -- -- -- (4) -- --
Class B -- -- -- (6) -- --
Class C -- -- -- -- -- -- (1)See note 4 in the
Class Y -- -- -- (122) -- -- notes to the financial
- --------------------------------------------------------------------------------------------------------- statements for
additional
Total distributions (1) (182) (2,030) (3,841) (85,979) (5,274) information.
- --------------------------------------------------------------------------------------------------------- (2)Includes undistributed
CAPITAL SHARE TRANSACTIONS(1): (distributions in
Class A: excess of) net
Proceeds from sales 1,698 1,237 173 368 128,033 55,576 investment income
Reinvestment of distributions -- 6 42 93 7,203 365 (000) of $(7) and $0
Payments for redemptions (635) (1,967) (402) (751) (35,813) (51,670) for Health Sciences
- --------------------------------------------------------------------------------------------------------- Fund, $(360) and $(19)
Increase (decrease) in net assets from for Real Estate
Class A transactions 1,063 (724) (187) (290) 99,423 4,271 Securities Fund and
- --------------------------------------------------------------------------------------------------------- accumulated net
Class B: investment loss of
Proceeds from sales 1,437 554 220 748 55,144 5,643 $(2,014) and $0 for
Reinvestment of distributions -- 3 49 109 7,621 367 Technology Fund at
Payments for redemptions (271) (191) (745) (1,384) (7,442) (2,456) March 31, 2000, and
- --------------------------------------------------------------------------------------------------------- September 30, 1999,
Increase (decrease) in net assets from respectively.
Class B transactions 1,166 366 (476) (527) 55,323 3,554
- ---------------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales 413 -- 12 -- 13,305 --
Reinvestment of distributions -- -- -- -- -- --
Payments for redemptions (2) -- -- -- (322) --
- ---------------------------------------------------------------------------------------------------------
Increase in net assets from Class C
transactions 411 -- 12 -- 12,983 --
- ---------------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 585 441 9,630 21,511 145,222 26,847
Reinvestment of distributions -- 9 213 468 19,875 968
Payments for redemptions (2,358) (11,597) (13,138) (22,377) (60,478) (28,988)
- ---------------------------------------------------------------------------------------------------------
Decrease (increase) in net assets from
Class Y transactions (1,773) (11,147) (3,295) (398) 104,619 (1,173)
- ---------------------------------------------------------------------------------------------------------
Decrease (increase) in net assets from
capital share transactions 867 (11,505) (3,946) (1,215) 272,348 6,652
- ---------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 4,132 (10,035) (4,391) (8,437) 540,647 140,790
NET ASSETS AT BEGINNING OF PERIOD 14,604 24,639 54,891 63,328 256,977 116,187
=========================================================================================================
NET ASSETS AT END OF PERIOD (2) $ 18,736 $ 14,604 $ 50,500 $ 54,891 $797,624 $256,977
=========================================================================================================
</TABLE>
The accompanying notes are an integral part of the financial statements.
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 63)
<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
2000* (unaudited) $ 8.24 $ -- $ 1.88 $ -- $ -- $ --
1999 7.82 0.01 0.46 (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
2000* (unaudited) $ 8.02 $ (0.03) $ 1.83 $ -- $ -- $ --
1999 7.65 0.01 0.40 -- (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 C
2000*(2) (unaudited) $ 9.76 $ -- $ 0.35 $ -- $ -- $ --
Class Y
2000* (unaudited) $ 8.28 $ 0.01 $ 1.88 $ -- $ -- $ --
1999 7.84 0.04 0.48 (0.04) (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
2000* (unaudited) $ 10.78 $ 0.51 $ (0.08) $ (0.50) $ -- $ --
1999 12.17 0.65 (1.36) (0.67) -- (0.01)
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(3) 10.37 -- 0.01 -- -- --
Class B
2000* (unaudited) $ 10.69 $ 0.39 $ (0.09) $ (0.37) $ -- $ --
1999 12.08 0.55 (1.34) (0.57) -- (0.03)
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(3) 10.37 -- -- -- -- --
Class C
2000*(2) (unaudited) $ 10.61 $ 0.21 $ 0.08 $ (0.20) $ -- $ --
Class Y
2000* (unaudited) $ 10.80 $ 0.44 $ (0.08) $ (0.43) $ -- $ --
1999 12.19 0.68 (1.35) (0.69) -- (0.03)
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(4) 10.00 0.13 0.39 (0.11) -- (0.04)
- -----------------------------------------------------------------------------------------------------------------------
</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) Commenced operations on February 1, 2000.
(3) Class A and Class B shares have been offered since September 29, 1995. All
ratios for the period have been annualized.
(4) Commenced operations on June 30, 1995. All ratios for the period have been
annualized.
The accompanying notes are an integral part of the financial statements.
(64 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
<TABLE>
<CAPTION>
RATIO OF NET
RATIO OF INVESTMENT
RATIO OF NET EXPENSES TO INCOME (LOSS)
NET ASSET RATIO OF INVESTMENT AVERAGE TO AVERAGE
VALUE NET ASSETS EXPENSES TO INCOME (LOSS) NET ASSETS NET ASSETS PORTFOLIO
END OF TOTAL END OF AVERAGE TO AVERAGE (EXCLUDING (EXCLUDING TURNOVER
PERIOD RETURN (A) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 10.12 22.82%+ $ 2,860 1.15% (0.19)% 1.39% (0.43)% 63%
8.24 6.08 1,383 1.16 0.11 1.30 (0.03) 53
7.82 (25.24) 2,017 1.15 0.04 1.20 (0.01) 45
12.05 23.60 849 1.15 (0.20) 1.29 (0.34) 54
9.86 (1.32)+ 629 1.15 0.18 2.12 (0.79) 19
$ 9.82 22.44%+ $ 2,493 1.90% (0.94)% 2.14% (1.18)% 63%
8.02 5.37 1,029 1.92 (0.64) 2.05 (0.77) 53
7.65 (25.80) 645 1.90 (0.73) 1.95 (0.78) 45
11.90 22.69 516 1.90 (0.94) 2.04 (1.08) 54
9.81 (1.86)+ 281 1.90 (0.61) 2.87 (1.58) 19
$ 10.11 3.59%+ $ 393 1.90% 0.91% 2.07% 0.74% 63%
$ 10.17 22.83%+ $12,990 0.90% 0.07% 1.14% (0.17)% 63%
8.28 6.59 12,192 0.90 0.38 1.05 0.23 53
7.84 (25.10) 21,977 0.90 0.27 0.95 0.22 45
12.08 23.89 41,243 0.90 0.06 1.04 (0.08) 54
9.87 (1.20)+ 12,485 0.90 0.43 1.87 (0.54) 19
- ---------------------------------------------------------------------------------------------------------------------
$ 10.71 3.34%+ $ 1,316 1.05% 6.28% 1.20% 6.13% 21%
10.78 (5.89) 1,518 1.05 5.52 1.18 5.39 21
12.17 (12.42) 2,027 1.05 4.71 1.18 4.58 36
14.97 36.77 2,105 1.05 4.46 1.30 4.21 14
11.52 18.17 226 1.05 4.36 1.76 3.65 8
10.38 0.00+ 1 1.05 0.00 2.59 (1.54) 0
$ 10.62 2.94%+ $ 1,690 1.80% 5.56% 1.95% 5.41% 21%
10.69 (6.68) 2,192 1.80 4.75 1.93 4.62 21
12.08 (13.04) 3,026 1.80 3.98 1.93 3.85 36
14.86 35.77 3,318 1.80 3.61 2.00 3.41 14
11.46 17.00 263 1.80 4.29 2.51 3.58 8
10.37 0.00+ 1 1.80 0.00 3.34 (1.54) 0
$ 10.70 2.77%+ $ 12 1.80% 8.66% 1.80% 8.66% 21%
$ 10.73 3.47%+ $47,482 0.80% 6.58% 0.95% 6.43% 21%
10.80 (5.64) 51,181 0.80 5.78 0.93 5.65 21
12.19 (12.18) 58,275 0.80 5.06 0.93 4.93 36
14.99 37.07 40,501 0.80 4.57 1.05 4.32 14
11.53 18.53 17,895 0.80 5.13 1.51 4.42 8
10.37 5.19+ 5,756 0.80 6.01 2.34 4.47 0
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 65)
<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>
TECHNOLOGY FUND
Class A
2000* (unaudited) $ 34.22 $ (0.17) $ 38.65 $ -- $ (11.06) $ --
1999 15.60 (0.18) 19.55 -- (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) --
Class B
2000* (unaudited) $ 32.59 $ (0.29) $ 36.35 $ -- $ (11.06) $ --
1999 14.99 (0.34) 18.69 -- (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) --
Class C
2000*(1) (unaudited) $ 50.30 $ (0.19) $ 11.52 $ -- $ -- $ --
Class Y
2000* (unaudited) $ 34.64 $ (0.13) $ 39.23 $ -- $ (11.06) $ --
1999 15.73 (0.13) 19.79 -- (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) --
- -----------------------------------------------------------------------------------------------------------------
</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) Excludes sales charges.
(1) Commenced operations on February 1, 2000.
The accompanying notes are an integral part of the financial statements.
(66 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
<TABLE>
<CAPTION>
RATIO OF NET
RATIO OF INVESTMENT
RATIO OF NET EXPENSES TO INCOME (LOSS)
NET ASSET RATIO OF INVESTMENT AVERAGE TO AVERAGE
VALUE NET ASSETS EXPENSES TO INCOME (LOSS) NET ASSETS NET ASSETS PORTFOLIO
END OF TOTAL END OF AVERAGE TO AVERAGE (EXCLUDING (EXCLUDING TURNOVER
PERIOD RETURN (A) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 61.64 132.84%+ $153,379 1.14% (0.89)% 1.14% (0.89)% 122%
34.22 128.71 21,491 1.15 (0.80) 1.16 (0.81) 184
15.60 (16.69) 7,703 1.15 (0.60) 1.15 (0.60) 124
20.20 17.71 5,564 1.15 (0.59) 1.17 (0.61) 150
19.25 18.60 4,799 1.15 (0.85) 1.26 (0.96) 119
18.24 66.22 1,464 1.13 (0.61) 1.55 (1.03) 74
$ 57.59 131.88%+ $103,238 1.88% (1.64)% 1.88% (1.64)% 122%
32.59 127.09 20,866 1.90 (1.56) 1.91 (1.57) 184
14.99 (17.21) 7,499 1.90 (1.38) 1.90 (1.38) 124
19.58 16.82 8,463 1.90 (1.41) 1.92 (1.43) 150
18.85 17.75 4,881 1.90 (1.60) 2.01 (1.71) 119
18.02 64.52 2,031 1.88 (1.41) 2.30 (1.83) 74
$ 61.63 22.52%+ $ 12,715 1.88% (1.60)% 1.88% (1.60)% 122%
$ 62.68 133.06%+ $528,292 0.88% (0.64)% 0.88% (0.64)% 122%
34.64 129.52 214,620 0.90 (0.53) 0.91 (0.54) 184
15.73 (16.41) 100,985 0.90 (0.38) 0.90 (0.38) 124
20.29 17.95 148,659 0.90 (0.41) 0.92 (0.43) 150
19.29 18.85 64,602 0.90 (0.60) 1.01 (0.71) 119
18.24 66.22 29,272 0.88 (0.35) 1.30 (0.77) 74
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 67)
<PAGE>
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2000 (UNAUDITED)
1 > ORGANIZATION
The First American Balanced Fund, Equity Income Fund, Equity Index Fund,
Large Cap Growth Fund, Large Cap Value Fund, Mid Cap Growth Fund, Mid Cap
Value Fund, Small Cap Growth Fund, Small Cap Value Fund, Emerging Markets
Fund, International Fund, International Index Fund, Health Sciences Fund,
Real Estate Securities Fund, and Technology Fund (each "Fund" and
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 Corporate Bond Fund, Limited
Term Income Fund, Intermediate Term Income Fund, Fixed Income Fund,
Strategic Income Fund, Arizona Tax Free Fund, California Intermediate Tax
Free Fund, California Tax Free Fund, Colorado Intermediate Tax Free Fund,
Colorado 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 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.
(68 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
DISTRIBUTIONS TO SHAREHOLDERS - Balanced Fund, Equity Income Fund, Equity
Index Fund, Large Cap Growth Fund, Large Cap Value Fund, Mid Cap Growth
Fund and Mid Cap Value Fund declare and pay income dividends monthly. Small
Cap Growth Fund, Small Cap Value Fund, International Index Fund, Health
Sciences Fund, Real Estate Securities Fund and Technology Fund declare and
pay income dividends quarterly. Emerging Markets Fund and International
Fund declare and pay dividends annually.
Due to the nature of the dividends received by the Real Estate Securities
Fund on its securities holdings, a portion of the quarterly distributions
of the Real Estate Securities Fund may be a return of capital. 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 distribute all of its taxable income.
Accordingly, no provision for Federal income taxes is required. For Federal
tax purposes, required distributions related to realized gains for security
transactions are computed as of September 30th or October 31st.
The character of distributions made during the year from net investment
income or net realized gains may differ from its ultimate characterization
for Federal income tax purposes. In addition, due to the timing of dividend
distributions, the fiscal year in which the amounts are distributed may
differ from the year that the income or realized gains (losses) were
recorded by the Fund.
Net investment income and net realized gains (losses) may differ for
financial statement and tax purposes because of temporary or permanent
book/tax differences. These differences are primarily due to losses
deferred due to wash sales, foreign currency gains and losses and the
"mark-to-market" of certain Passive Foreign Investment Companies (PFICs)
for tax purposes. To the extent these differences are permanent,
adjustments are made to the appropriate equity accounts in the period that
the difference arises.
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 Fund and International Index Fund are
maintained in U.S. dollars on the following basis:
* market value of investment securities, assets and liabilities at the
current rate of exchange; and
* 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 Fund and International Index 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 Fund and International Index 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,
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 69)
<PAGE>
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2000 (UNAUDITED)
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 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, U.S. 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"), First American Asset Management (the "Advisor"), a division
of U.S. Bank National Association ("U.S. Bank"), manages each Fund's assets
and furnishes related office facilities, equipment, research and personnel.
The Agreement requires each Fund to pay the Advisor a monthly fee based
upon average daily net assets. The fee for each 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. The Advisor intends to waive fees during the current
fiscal year so that total fund operating expenses do not exceed expense
limitations. Fee waivers may be discontinued at any time.
The Funds may invest in First American Funds, Inc. (FAF), subject to
certain limitations. The terms of such transactions are identical to those
of non-related entities except that, to avoid duplicative investment
advisory fees, the Advisor reimburses each FAIF fund an amount equal to the
investment advisory fee earned by FAF related to such investments.
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.
(70 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
ADMINISTRATION FEES - SEI Investments Management Corporation ("SIMC")
provided administrative services, including certain accounting, legal, and
shareholder services to the First American Family of Funds from October 1,
1999 through December 31, 1999. Effective January 1, 2000, U.S. Bank was
appointed as the administrator and began providing administrative services
to the First American Family of Funds. Under both arrangements, the Funds
are charged an annual rate of 0.12% of each FAIF Fund's average daily net
assets, with a minimum annual fee of $50,000. To the extent that aggregate
net assets of the First American Family of Funds exceed $8 billion, the
annual rate for each FAIF Fund is reduced to 0.105% of their relative share
of excess net assets. Fees are computed daily and paid monthly.
SUB-ADMINISTRATION FEES - U.S. Bank assisted SIMC and provided
sub-administration services for the Funds from October 1, 1999 through
December 31, 1999. For these services SIMC compensates U.S. Bank, as
sub-administrator, monthly at an annual rate of up to 0.05% of each Fund's
daily net assets. The fees for each Fund from October 1, 1999 through
December 31, 1999 were approximately 0.017% of average daily net assets.
Under this arrangement, SIMC paid U.S. Bank $2,646,000 in aggregate for
this three month period.
Effective January 1, 2000 SIMC was appointed sub-administrator and began
assisting U.S. Bank in providing sub-administration services for the Funds.
For these services, U.S. Bank compensates SIMC monthly at an annual rate
equal to 0.05% of aggregate average daily net assets of FAIF. In addition,
SIMC also receives 0.015% on assets up to $34.5 billion, 0.0075% on the
next $25.5 billion and 0.005% on assets over $60 billion for all Funds.
There is a minimum $50,000 per Fund fee (the oldest 38 Funds are excluded).
U.S. Bank paid SIMC $2,820,000 in aggregate from January 1, 2000 through
March 31, 2000 for the First American Family of Funds. For the Funds
included in this semiannual report the amounts paid to U.S. Bank and SIMC
for their respective periods were as follows (000):
For the six months ended March 31, 2000, fees paid for the Funds included
in this semiannual report were as follows (000):
U.S. BANK SIMC
---------------------------------------------------------------------------
Balanced Fund $ 38 $ 68
Equity Income Fund 31 54
Equity Index Fund 126 268
Large Cap Growth Fund 93 203
Large Cap Value Fund 128 227
Mid Cap Growth Fund 36 100
Mid Cap Value Fund 26 46
Small Cap Growth Fund 28 90
Small Cap Value Fund 43 78
Emerging Markets Fund 4 11
International Fund 56 154
International Index Fund 12 24
Health Sciences Fund 1 3
Real Estate Fund 4 8
Technology Fund 30 109
---------------------------------------------------------------------------
CUSTODIAN FEES - Through a separate contractual agreement, U.S. Bank serves
as the Funds' custodian. The fee for each Fund, other than Emerging Markets
Fund, International Fund and International Index Fund, is equal to an
annual rate of 0.03% of average daily net assets. The fee for Emerging
Markets Fund, International Fund, and International Index Fund is equal to
an annual rate of 0.10% of average daily net assets. All fees are computed
daily and paid monthly.
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 71)
<PAGE>
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2000 (UNAUDITED)
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
0.25% 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 the following amounts to affiliates of U.S. Bank for
the six months ended March 31, 2000 (000):
U.S. BANCORP
U.S. BANK PIPER JAFFRAY U.S. BANK TRUST
---------------------------------------------------------------------------
Balanced Fund $ 67 $ 23 $ 2
Equity Income Fund 16 3 --
Equity Index Fund 103 38 4
Large Cap Growth Fund 32 119 --
Large Cap Value Fund 66 82 2
Mid Cap Growth Fund 1 99 --
Mid Cap Value Fund 18 2 --
Small Cap Growth Fund 6 48 --
Small Cap Value Fund 12 3 --
Emerging Markets Fund -- 4 --
International Fund 7 41 3
International Index Fund 2 1 --
Health Sciences Fund 2 1 --
Real Estate Fund 1 1 --
Technology Fund 43 21 2
---------------------------------------------------------------------------
TRANSFER AGENT FEES - From October 1, 1999 to December 31, 1999 DST
Systems, Inc. provided transfer agency services for the Funds. Effective
January 1, 2000 U.S. Bank was appointed as transfer agent and dividend
disbursement agent. As the servicing agent U.S. Bank was paid $4,252,000 in
aggregate for the six month period ended March 31, 2000. For the six month
period ended March 31, 2000 fees paid to U.S. Bank for the funds included
in this report were as follows (000):
---------------------------------------------------------------------------
Balanced Fund $ 74
Equity Income Fund 22
Equity Index Fund 150
Large Cap Growth Fund 125
Large Cap Value Fund 156
Mid Cap Growth Fund 149
Mid Cap Value Fund 52
Small Cap Growth Fund 49
Small Cap Value Fund 62
Emerging Markets Fund 27
International Fund 71
International Index Fund 13
Health Sciences Fund 14
Real Estate Securities Fund 13
Technology Fund 81
---------------------------------------------------------------------------
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, 2000, legal fees and expenses were paid
to a law firm of which the Assistant Secretaries of the Funds are partners.
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.
CDSC
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%
---------------------------------------------------------------------------
Class B shares will automatically convert to Class A shares eight years
after the first day of the month shares are purchased.
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, 2000, sales charges retained by SIDCO
for distributing the First American Family of Funds' shares were
approximately $118,000.
(72 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
4 > CAPITAL SHARE TRANSACTIONS
Capital share transactions for the Funds were as follows (000):
<TABLE>
<CAPTION>
BALANCED EQUITY EQUITY
FUND INCOME FUND INDEX FUND
- -------------------------------------------------------------------------------------------------------------------------------
10/1/99 10/1/98 10/1/99 10/1/98 10/1/99 10/1/98
to to to to to to
3/31/00 9/30/99 3/31/00 9/30/99 3/31/00 9/30/99
- -------------------------------------------------------------------------------------------------------------------------------
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C>
Class A:
Shares issued 292 1,016 250 728 1,124 2,912
Shares issued in lieu of cash distributions 562 776 73 47 122 74
Shares redeemed (1,172) (2,208) (227) (287) (737) (891)
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS A TRANSACTIONS (318) (416) 96 488 509 2,095
===============================================================================================================================
Class B:
Shares issued 187 534 83 223 764 2,037
Shares issued in connection with acquisition of
Qualivest Fund -- -- -- -- -- 50
Shares issued in lieu of cash distributions 483 583 49 40 100 --
Shares redeemed (845) (851) (133) (120) (428) (331)
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS B TRANSACTIONS (175) 266 (1) 143 436 1,756
===============================================================================================================================
Class C:
Shares issued 30 102 64 107 457 684
Shares issued in lieu of cash distributions 12 1 8 -- 20 1
Shares redeemed (26) -- (17) -- (123) (23)
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS C TRANSACTIONS 16 103 55 107 354 662
===============================================================================================================================
Class Y:
Shares issued 4,425 6,963 1,528 3,513 12,263 17,985
Shares issued in lieu of cash distributions 2,647 4,481 214 210 1,192 1,350
Shares redeemed (10,522) (17,997) (4,528) (4,646) (9,657) (20,437)
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS Y TRANSACTIONS (3,450) (6,553) (2,786) (923) 3,798 (1,102)
===============================================================================================================================
NET (DECREASE) INCREASE IN CAPITAL SHARES (3,927) (6,600) (2,636) (185) 5,097 3,411
===============================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
LARGE CAP LARGE CAP MID CAP
GROWTH FUND VALUE FUND GROWTH FUND
- ------------------------------------------------------------------------------------------------------------------------------
10/1/99 10/1/98 10/1/99 10/1/98 10/1/99 10/1/98
to to to to to to
3/31/00 9/30/99 3/31/00 9/30/99 3/31/00 9/30/99
- ------------------------------------------------------------------------------------------------------------------------------
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C>
Class A:
Shares issued 1,046 3,013 631 1,328 1,476 836
Shares issued in lieu of cash distributions 1,181 948 896 1,146 2,541 3,066
Shares redeemed (1,313) (4,125) (1,839) (2,424) (2,035) (7,075)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS A TRANSACTIONS 914 (164) (312) 50 1,982 (3,173)
==============================================================================================================================
Class B:
Shares issued 501 335 140 238 115 27
Shares issued in lieu of cash distributions 163 82 330 430 7 1
Shares redeemed (113) (133) (510) (502) (9) (1)
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS B TRANSACTIONS 551 284 (40) 166 113 27
==============================================================================================================================
Class C:
Shares issued 97 50 47 60 78 37
Shares issued in lieu of cash distributions 10 -- 8 -- 8 --
Shares redeemed (10) (1) (6) -- (2) (1)
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS C TRANSACTIONS 97 49 49 60 84 36
==============================================================================================================================
Class Y:
Shares issued 8,199 9,639 12,932 12,748 5,476 17,943
Shares issued in connection with acquisition of
Santa Monica Trust Fund 471 -- -- -- -- --
Shares issued in connection with acquisition of
Piper Common Trust Fund -- 487 -- -- -- --
Shares issued in lieu of cash distributions 2,201 1,348 4,374 5,553 2,421 1,200
Shares redeemed (4,258) (10,125) (14,323) (16,244) (5,627) (9,045)
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS Y TRANSACTIONS 6,613 1,349 2,983 2,057 2,270 10,098
==============================================================================================================================
NET INCREASE IN CAPITAL SHARES 8,175 1,518 2,680 2,333 4,449 6,988
==============================================================================================================================
</TABLE>
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 73)
<PAGE>
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
MID CAP SMALL CAP
VALUE FUND GROWTH FUND
- ----------------------------------------------------------------------------------------------------
10/1/99 10/1/98 10/1/99 10/1/98
to to to to
3/31/00 9/30/99 3/31/00 9/30/99
- ----------------------------------------------------------------------------------------------------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Class A:
Shares issued 400 595 841 3,781
Shares issued in lieu of cash distributions 4 482 204 4
Shares redeemed (903) (1,468) (656) (4,240)
- ----------------------------------------------------------------------------------------------------
TOTAL CLASS A TRANSACTIONS (499) (391) 389 (455)
====================================================================================================
Class B:
Shares issued 29 79 165 70
Shares issued in lieu of cash distributions 1 496 17
Shares redeemed (524) (1,183) (19) (28)
- ----------------------------------------------------------------------------------------------------
TOTAL CLASS B TRANSACTIONS (494) (608) 163 42
====================================================================================================
Class C:
Shares issued 29 13 57 19
Shares issued in lieu of cash distributions -- -- 2 --
Shares redeemed (1) -- (1) --
- ----------------------------------------------------------------------------------------------------
TOTAL CLASS C TRANSACTIONS 28 1358 19 19
====================================================================================================
Class Y:
Shares issued 3,582 12,012 5,325 8,081
Shares issued in lieu of cash distributions 50 4,173 708 4
Shares redeemed (7,099) (20,520) (2,571) (2,891)
- ----------------------------------------------------------------------------------------------------
TOTAL CLASS Y TRANSACTIONS (3,467) (4,335) 3,462 5,194
====================================================================================================
NET INCREASE (DECREASE) IN CAPITAL SHARES (4,432) (5,321) 4,072 4,800
====================================================================================================
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP EMERGING
VALUE FUND MARKETS FUND
- ---------------------------------------------------------------------------------------------------------
10/1/99 10/1/98 10/1/99 10/1/98
to to to to
3/31/00 9/30/99 3/31/00 9/30/99
- ---------------------------------------------------------------------------------------------------------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Class A:
Shares issued 559 342 28 43
Shares issued in connection with merger of Regional
Equity Fund and Micro Cap Value Fund 1,446 -- -- --
Shares issued in lieu of cash distributions 4 77 -- --
Shares redeemed (738) (587) (165) (331)
- ---------------------------------------------------------------------------------------------------------
TOTAL CLASS A TRANSACTIONS 1,271 (168) (137) (288)
=========================================================================================================
Class B:
Shares issued 12 50 5 2
Shares issued in connection with merger of Regional
Equity Fund 922 -- -- --
Shares issued in lieu of cash distributions -- 4 --
Shares redeemed (91) (27) -- --
- ---------------------------------------------------------------------------------------------------------
TOTAL CLASS B TRANSACTIONS 843 27 5 2
=========================================================================================================
Class C:
Shares issued 20 8 1 --
Shares issued in lieu of cash distributions -- -- -- --
Shares redeemed (2) -- -- --
- ---------------------------------------------------------------------------------------------------------
TOTAL CLASS C TRANSACTIONS 18 8 1
=========================================================================================================
Class Y:
Shares issued 3,347 9,570 731 5,113
Shares issued in connection with merger of Regional
Equity Fund and Micro Cap Value Fund 7,381 -- -- --
Shares issued in lieu of cash distributions 94 2,014 -- --
Shares redeemed (7,321) (15,705) (653) (519)
- ---------------------------------------------------------------------------------------------------------
TOTAL CLASS Y TRANSACTIONS 3,501 (4,121) 78 4,594
=========================================================================================================
NET INCREASE (DECREASE) IN CAPITAL SHARES 5,633 (4,254) (55) 4,308
=========================================================================================================
</TABLE>
(74 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
<TABLE>
<CAPTION>
INTERNATIONAL INTERNATIONAL HEALTH
FUND INDEX FUND SCIENCES FUND
- -------------------------------------------------------------------------------------------------------------------------------
10/1/99 10/1/98 10/1/99 10/1/98 10/1/99 10/1/98
to to to to to to
3/31/00 9/30/99 3/31/00 9/30/99 3/31/00 9/30/99
- ------------------------------------------------------------------------------------------------------------------------------
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C>
Class A:
Shares issued 4,228 7,655 130 865 179 146
Shares issued in lieu of cash distributions 151 206 1 15 -- 1
Shares redeemed (3,201) (7,985) (158) (789) (66) (237)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS A TRANSACTIONS 1,178 (124) (27) 91 113 (90)
==============================================================================================================================
Class B:
Shares issued 221 85 26 46 152 67
Shares issued in lieu of cash distributions 15 13 -- 1 -- --
Shares redeemed (28) (49) (14) (4) (28) (23)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS B TRANSACTIONS 208 49 12 43 124 44
==============================================================================================================================
Class C:
Shares issued 242 67 1 -- 39 --
Shares issued in lieu of cash distributions 4 -- -- -- -- --
Shares redeemed (15) (2) -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS C TRANSACTIONS 231 65 1 -- 39 --
==============================================================================================================================
Class Y:
Shares issued 7,070 11,678 121 562 58 52
Shares issued in lieu of cash distributions 912 939 3 693 -- 1
Shares redeemed (4,670) (8,887) (572) (895) (262) (1,383)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS Y TRANSACTIONS 3,312 3,730 (448) 360 (204) (1,330)
==============================================================================================================================
NET INCREASE (DECREASE) IN CAPITAL SHARES 4,929 3,720 (463) 494 72 (1,376)
==============================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
REAL ESTATE TECHNOLOGY
SECURITIES FUND FUND
- ----------------------------------------------------------------------------------------------------
10/1/99 10/1/98 10/1/99 10/1/98
to to to to
3/31/00 9/30/99 3/31/00 9/30/99
- ----------------------------------------------------------------------------------------------------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Class A:
Shares issued 16 31 2,403 2,877
Shares issued in lieu of cash distributions 4 8 191 21
Shares redeemed (38) (65) (733) (2,763)
- ----------------------------------------------------------------------------------------------------
TOTAL CLASS A TRANSACTIONS (18) (26) 1,861 135
====================================================================================================
Class B:
Shares issued 21 65 1,078 223
Shares issued in lieu of cash distributions 5 10 215 22
Shares redeemed (72) (121) (140) (105)
- ----------------------------------------------------------------------------------------------------
TOTAL CLASS B TRANSACTIONS (46) (46) 1,153 140
====================================================================================================
Class C:
Shares issued 1 -- 211 --
Shares issued in lieu of cash distributions -- -- -- --
Shares redeemed -- -- (5) --
- ----------------------------------------------------------------------------------------------------
TOTAL CLASS C TRANSACTIONS 1 -- 206 --
====================================================================================================
Class Y:
Shares issued 915 1,842 2,843 1,026
Shares issued in lieu of cash distributions 21 42 517 54
Shares redeemed (1,238) (1,922) (1,127) (1,302)
- ----------------------------------------------------------------------------------------------------
TOTAL CLASS Y TRANSACTIONS (302) (38) 2,233 (222)
====================================================================================================
NET (DECREASE) INCREASE IN CAPITAL SHARES (365) (110) 5,453 53
====================================================================================================
</TABLE>
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 75)
<PAGE>
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2000 (UNAUDITED)
5 > INVESTMENT SECURITY TRANSACTIONS
During the six months ended March 31, 2000, 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 $22,051 $44,509 $ 91,813 $ 142,933
Equity Income Fund -- -- 75,932 131,312
Equity Index Fund -- -- 254,061 1,579,005
Large Cap Growth Fund -- -- 323,387 325,381
Large Cap Value Fund -- -- 437,276 540,969
Mid Cap Growth Fund -- -- 560,789 598,937
Mid Cap Value Fund -- -- 239,684 302,609
Small Cap Growth Fund -- -- 571,695 532,824
Small Cap Value Fund -- -- 199,777 153,406
Emerging Markets Fund -- -- 36,649 37,634
International Fund -- -- 405,185 408,662
International Index Fund -- -- 837 10,752
Health Sciences Fund -- -- 10,090 10,004
Real Estate Securities Fund -- -- 10,648 14,885
Technology Fund -- -- 791,665 609,267
---------------------------------------------------------------------------
At March 31, 2000, 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, 2000, is as
follows (000):
AGGREGATE GROSS AGGREGATE GROSS
APPRECIATION DEPRECIATION NET
--------------------------------------------------------------------------
Balanced Fund $ 44,787 $ (15,975) $ 28,812
Equity Income Fund 117,458 (7,545) 109,913
Equity Index Fund 997,619 (176,417) 821,202
Large Cap Growth Fund 641,365 (23,589) 617,776
Large Cap Value Fund 261,247 (68,644) 192,603
Mid Cap Growth Fund 228,622 (27,548) 201,074
Mid Cap Value Fund 37,348 (16,349) 20,999
Small Cap Growth Fund 182,833 (37,471) 145,362
Small Cap Value Fund 168,250 (21,069) 147,181
Emerging Markets Fund 27,037 (1,060) 25,977
International Fund 438,790 (18,794) 419,996
International Index Fund 65,040 (11,037) 54,003
Health Sciences Fund 2,725 (2,074) 651
Real Estate Securities Fund 2,607 (5,161) (2,556)
Technology Fund 270,970 (62,643) 208,327
--------------------------------------------------------------------------
At September 30, 1999, the following funds have capital loss carryforwards:
FUND AMOUNT (000) EXPIRATION DATE
---------------------------------------------------------------------------
Mid Cap Value $16,610 2007
International Index 16 2007
Emerging Markets 9,829 2003-2007
Health Sciences 14 2007
Real Estate Securities 4,061 2006-2007
---------------------------------------------------------------------------
The Mid Cap Value Fund, Health Sciences Fund, Emerging Markets Fund, and
International Index Fund incurred losses for tax purposes in the amount of
$77,402,000, $108,000, $2,183,000, and $461,000 for November 1, 1998, to
September 30, 1999, respectively. As permitted by tax regulations, the
Funds intend to elect to defer and treat these losses as arising in the
fiscal year ending September 30, 2000.
6 > 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 at the close of the year will be recognized as capital gains
or losses for Federal income tax purposes. At March 31, 2000, open long S&P
500 Index futures contracts for the Equity Index Fund were as follows:
MARKET VALUE
NUMBER OF COVERED BY SETTLEMENT UNREALIZED
CONTRACTS CONTRACTS (000) MONTH GAIN (000)
---------------------------------------------------------------------------
4 $15,153 Jun 00 $13
1 379 Jun 00 1
---------------------------------------------------------------------------
5 $15,532 $14
---------------------------------------------------------------------------
(76 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
7 > SECURITIES LENDING TRANSACTIONS
In order to generate additional income, the 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, 2000, the collateral purchased with cash received and held at
March 31, 2000, with respect to such loans, and income generated during the
six months ended March 31, 2000, from the program were as follows (000):
MARKET VALUE OF INCOME RECEIVED
FUND LOANED SECURITIES FROM SECURITIES LENDING
---------------------------------------------------------------------------
Balanced $ 85,923 $ 66
Equity Income 76,171 35
Equity Index 441,764 180
Large Cap Growth 393,294 182
Large Cap Value 232,184 125
Mid Cap Growth 251,970 177
Mid Cap Value 94,415 33
Small Cap Growth 120,020 178
Small Cap Value 38,924 52
Health Sciences 3,842 3
Real Estate Securities 7,700 4
Technology 204,121 222
---------------------------------------------------------------------------
MARKET VALUE OF COLLATERAL PURCHASED WITH CASH RECEIVED
--------------------------------------------------------
OTHER FIXED
REPURCHASE MONEY MARKET INCOME
FUND AGREEMENTS INSTRUMENTS SECURITIES TOTAL
---------------------------------------------------------------------------
Balanced $ 57,129 $ 223 $ 31,510 $ 88,862
Equity Income 50,645 198 27,934 78,777
Equity Index 293,722 1,147 162,006 456,875
Large Cap Growth 261,495 1,021 144,231 406,747
Large Cap Value 154,376 603 85,148 240,127
Mid Cap Growth 167,531 654 92,404 260,589
Mid Cap Value 62,775 245 34,624 97,644
Small Cap Growth 79,799 312 44,014 124,125
Small Cap Value 25,880 101 14,275 40,256
Health Sciences 2,554 10 1,409 3,973
Real Estate Securities 5,120 20 2,824 7,964
Technology 135,717 530 74,856 211,103
---------------------------------------------------------------------------
U.S. Bank 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 received $1,286,000 in aggregate securities lending
fees for the six months ended March 31, 2000. Fees generated from the funds
included in this annual report for securities lending were as follows
(000):
FUND
---------------------------------------------------------------------------
Balanced Fund 44
Equity Income Fund 24
Equity Index Fund 128
Large Cap Growth Fund 124
Large Cap Value Fund 85
Mid Cap Value 23
Mid Cap Growth Fund 127
Small Cap Growth Fund 128
Small Cap Value Fund 36
Emerging Markets Fund --
International Fund --
International Index Fund --
Health Sciences Fund 2
Real Estate Fund 3
Technology Fund 162
---------------------------------------------------------------------------
8 > COMMON TRUST FUND CONVERSIONS
On March 17, 2000, the Santa Monica Trust Fund was converted into the Large
Cap Growth Fund. The assets, which consisted of securities and related
receivables, were converted on a tax free basis. At the time of conversion
470,882 shares of Class Y of the Large Cap Growth Fund were issued. The net
assets of the Santa Monica Trust Fund and Large Cap Growth Fund immediately
before the conversion were $10,580,732 and $1,347,748,812, respectively.
Included in the net assets of the Santa Monica Trust Fund were $6,939,805
of unrealized gains.
On July 23, 1999, the Piper Trust Common Equity Fund was converted into the
Large Cap Growth Fund. The Fund assets, which consisted of securities and
related receivables, were converted on a tax free basis. At the time of
conversion 487,250 shares of Class Y of the Large Cap Growth Fund were
issued. The net assets of the Piper Trust Common Equity Fund and Large Cap
Growth Fund immediately before the conversion were $9,808,354 and
$1,059,225,834, respectively. Included in the net assets of the Piper Trust
Common Equity Fund were $3,681,404 of unrealized gains.
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 77)
<PAGE>
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2000 (UNAUDITED)
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 shares of the Large Cap Value Fund were issued at the time of
conversion. The net assets of the Large Companies Value 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.
9 > FUND MERGER
The Board of Directors and shareholders of Regional Equity Fund and Micro
Cap Value Fund approved a reorganization into Small Cap Value Fund at the
close of business on February 25, 2000.
Under the Agreement and Plan of Reorganization, Class A, Class B, and Class
Y shares of Regional Equity Fund and Class A and Class Y shares of Micro
Cap Value Fund were exchanged for shares of the Class A, Class B, and Class
Y shares, respectively, of the Small Cap Value Fund on a tax free basis.
The net assets before the reorganization and shares issued and redeemed
were as follows:
SHARES
FUND NET ASSETS ISSUED
--------------------------------------------------------------------------
Small Cap Value 311,587,489 9,749,924
--------------------------------------------------------------------------
Included in the net assets of the redeeming funds were the following
components:
DISTRIBUTIONS
IN EXCESS OF NET ACCUMULATED
PAID IN INVESTMENT REALIZED
FUND CAPITAL INCOME LOSS
--------------------------------------------------------------------------
Regional Equity 84,151,702 517,478 (249,408)
Micro Cap Value 24,840,724 2,352 0
--------------------------------------------------------------------------
NET
UNREALIZED NET SHARES
FUND APPRECIATION ASSETS REDEEMED
--------------------------------------------------------------------------
Regional Equity 26,473,410 109,858,226 7,674,145
Micro Cap Value 9,978,083 34,816,455 5,612,103
--------------------------------------------------------------------------
The Regional Equity Fund and Micro Cap Value Fund utilized earnings and
profits distributed to shareholders on redemption of shares as part of the
dividend paid deduction for income tax purposes. Accordingly $1,464,000 and
$737,000 were reclasssed from undistributed net realized gain on investment
to paid in capital for Regional Equity and Micro Cap Value, respectively.
10 > LINE OF CREDIT
Pursuant to a commitment letter dated September 7, 1999, Citibank, N.A.
provides a revolving line of credit to the FAIF, Inc. for short-term or
emergency purposes. The loans are for the respective benefit of and
repayable from the respective assets of each Fund. The aggregate principal
amount of all borrowings may not exceed $100,000,000, and borrowings must
be in the minimum principal amount of $1,000,000 and integral multiple
amounts of $1,000,000 for each Fund. At the Fund's option Citibank N.A. is
paid either a base rate or the Federal Funds rate on the amount out on
loan. In addition there is a commitment fee on the unused portion of the
line of credit. The commitment fee is calculated at 0.08% basis points on
the unutilized portion of the credit line. Fees are accrued daily and paid
quarterly to Citibank N.A. There were no borrowings under the line of
credit during the six month period ended March 31, 2000.
(78 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
NOTICE TO SHAREHOLDERS
INVESTMENT STRATEGIES
Mid Cap Growth and Small Cap Growth funds recently updated their
prospectuses to clarify that the funds frequently invested in companies at
the time of their initial public offering (IPO). By virtue of its size and
institutional nature, the advisor may have greater access than individual
investors have to IPOs, including access to so-called "hot issues" that are
generally traded in the aftermarket at prices in excess of the IPO price.
IPOs will frequently be sold within 12 months of purchase. This may result
in increased short-term capital gains that will be taxable to shareholders
as ordinary income.
Companies involved in IPOs generally have limited operating histories, and
prospects for future profitability are uncertain. Prices of IPOs may also
be unstable due to the absence of a prior public market, the small number
of shares available for trading, and limited investor information.
SHAREHOLDER VOTING RESULTS
MICRO CAP VALUE AND REGIONAL EQUITY FUNDS
On February 25, 2000, Micro Cap Value and Regional Equity funds were merged
into Small Cap Value Fund. Following are the shareholder voting results.
Micro Cap Value Fund
Class A shares
For 115,041 96.60% of shares voted 54.32% of shares outstanding
Against 0 0.00% of shares voted 0.00% of shares outstanding
Abstain 4,048 3.39% of shares voted 1.91% of shares outstanding
Micro Cap Value Fund
Class Y shares
For 5,446,557 99.56% of shares voted 73.12% of shares outstanding
Against 12,785 0.23% of shares voted 0.17% of shares outstanding
Abstain 11,163 0.20% of shares voted 0.14% of shares outstanding
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 79)
<PAGE>
NOTICE TO SHAREHOLDERS CONTINUED
Regional Equity Fund
Class A shares
For 964,515 97.76% of shares voted 58.48% of shares outstanding
Against 7,827 0.79% of shares voted 0.47% of shares outstanding
Abstain 14,231 1.44% of shares voted 0.86% of shares outstanding
Regional Equity Fund
Class B shares
For 636,008 93.04% of shares voted 53.09% of shares outstanding
Against 22,145 3.22% of shares voted 1.84% of shares outstanding
Abstain 25,541 3.72% of shares voted 2.12% of shares outstanding
Regional Equity Fund
Class Y shares
For 4,227,168 92.02% of shares voted 56.98% of shares outstanding
Against 35,440 0.77% of shares voted 0.47% of shares outstanding
Abstain 330,790 7.20% of shares voted 4.45% of shares outstanding
(80 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
TRIBUTE TO DAVID T. BENNETT
TRIBUTE TO DAVID T. BENNETT
As friends and colleagues, the Board of Directors of First American Funds
wishes to recognize David T. Bennett for the significant and lasting
contributions he made as a Director of First American Funds. His services
were cut short by his recent and untimely death following a 13-year battle
with cancer.
David was an attorney with the law firm of Gray, Plant, Mooty, Mooty &
Bennett since graduating from law school in 1967. David was also a
successful entrepreneur, owning controlling interests in Highland
Manufacturing, Kiefer Built, and USL Products. He also devoted countless
hours to numerous civic and charitable groups, including the Minneapolis
Institute of Arts, the Guthrie Theater, the Nature Conservancy, and
Dunwoody Institute.
His association with the funds began in 1987, when he joined the Board of
Directors of Piper Funds. First American Funds have been the beneficiary of
David's experience, wisdom, and insight during challenging periods of
change and growth. His knowledge of the industry and mutual fund board
experience were invaluable during the critical transition period
integrating the Piper and First American Fund Families. David's abilities
were particularly appreciated by the Audit, Pricing, and Board Development
Committees on which he served. The Directors with whom he served value
greatly their time spent together.
We gratefully and sincerely recognize David's contributions and extend our
sincere condolences to David's family and friends.
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000 81)
<PAGE>
(This page has been left blank intentionally.)
<PAGE>
BOARD OF DIRECTORS FIRST AMERICAN INVESTMENT FUNDS, INC.
MR. ROBERT DAYTON
Director of First American Investment Funds, Inc.
Chief Executive Officer of Okabena Company
MR. ROGER GIBSON
Director of First American Investment Funds, Inc.
Vice President of North America-Mountain Region for United Airlines
MR. ANDREW HUNTER III
Director of First American Investment Funds, Inc.
Chairman of Hunter Keith Industries
MR. LEONARD KEDROWSKI
Director of First American Investment Funds, Inc.
Owner and President of Executive Management Consulting, Inc.
MR. JOHN MURPHY JR.
Director of First American Investment Funds, Inc.
Executive Vice President, U.S. Bancorp
MR. ROBERT SPIES
Director of First American Investment Funds, Inc.
Retired Vice President, U.S. Bank National Association
MR. JOSEPH STRAUSS
Director of First American Investment Funds, Inc.
Former Chairman of First American Investment Funds, Inc.
Owner and President of Strauss Management Company
MS. VIRGINIA STRINGER
Chairperson of First American Investment Funds, Inc.
Owner and President of Strategic Management Resources, Inc.
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2000
<PAGE>
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
FIRST AMERICAN FUNDS
P.O. Box 1330
Minneapolis, MN 55440-1330
This report and the financial statements contained herein are submitted
for the general information of the shareholders of the corporation.
Shares in the funds are not deposits or obligations of, or guaranteed or
endorsed by, U.S. Bank or any of its affiliates. Such shares are also not
federally insured by the Federal Deposit Insurance Corporation, the
Federal Reserve Board, or any other agency. Investment in the shares
involves investment risk including loss of principal amount invested.
Past performance does not guarantee future results. The principal value
of an investment will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
INVESTMENT ADVISOR AND ADMINISTRATOR
FIRST AMERICAN ASSET MANAGEMENT,
A DIVISION OF U.S. BANK NATIONAL ASSOCIATION
601 Second Avenue South
Minneapolis, Minnesota 55402
CUSTODIAN
U.S. BANK NATIONAL ASSOCIATION
180 East Fifth Street
St. Paul, Minnesota 55101
DISTRIBUTOR
SEI INVESTMENTS DISTRIBUTION CO.
1 Freedom Valley Drive
Oaks, Pennsylvania 19456
INDEPENDENT AUDITORS
ERNST & YOUNG LLP
1400 Pillsbury Center
200 South Sixth Street
Minneapolis, Minnesota 55402
COUNSEL
DORSEY & WHITNEY LLP
220 South Sixth Street
Minneapolis, Minnesota 55402
- --------------------------------------------------------------------------------
FIRST AMERICAN FUNDS Bulk Rate
c/o Fulfillment Agent, American Financial Printing Inc. U.S. Postage
404 Industrial Boulevard, N.E. PAID
Minneapolis, MN 55413 Mpls, MN
Permit No. 26388
In an attempt to reduce shareholder costs and help eliminate duplication, the
funds will try to limit their mailing to one report for each address that lists
one or more shareholders with the same last name. If you would like additional
copies, please call Investor Services at 1-800-637-2548.
3014-00 5/2000
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