[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
TAX FREE BOND
FUNDS
ANNUAL REPORT
2000
FIRST AMERICAN
INVESTMENT FUNDS, INC.
<PAGE>
FIRST AMERICAN
FAMILY OF FUNDS
INVESTMENTS FOR EVERY GOAL
FIRST AMERICAN FUNDS OFFER 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
|
|
(*) FUNDS OF FUNDS
|
|
(*) BOND FUNDS
|
|
(*) TAX FREE BOND FUNDS
|
| ARIZONA TAX FREE
| CALIFORNIA INTERMEDIATE TAX FREE
| CALIFORNIA TAX FREE
| COLORADO INTERMEDIATE TAX FREE
| COLORADO TAX FREE
| INTERMEDIATE TAX FREE
| MINNESOTA INTERMEDIATE TAX FREE
| MINNESOTA TAX FREE
| OREGON INTERMEDIATE TAX FREE
| TAX FREE
|
(*) MONEY MARKET FUNDS
|
|
LOWER RISK (o)
AND RETURN POTENTIAL
Income from tax-exempt funds may be subject to state and local taxes and a
portion of income may be subject to the Minnesota state and/or federal
alternative minimum tax for certain investors. Federal income tax rules will
apply to any capital gains distributions. Mutual fund investing involves risk;
principal loss is possible.
TABLE OF CONTENTS
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Message to Shareholders 1
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Report of Independent Auditors 25
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Statements of Net Assets 26
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Statements of Operations 64
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Statements of Changes in Net Assets 66
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Financial Highlights 68
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Notes to Financial Statements 72
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Notice to Shareholders 78
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NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
<PAGE>
MESSAGE TO SHAREHOLDERS NOVEMBER 15, 2000
DEAR SHAREHOLDERS:
On behalf of the entire board of directors and the staff of First American
Asset Management, thank you for the ongoing opportunity you have given us
to manage your investments. As always, we strive to provide you, our fund
shareholders, consistent and competitive investment performance over time.
At times during the past year technology stocks, healthcare stocks,
municipal bonds, and long Treasury bonds have been market leaders. Small-
and mid-cap stocks outperformed large-cap stocks, and in general, market
volatility was the norm. Guessing which sector of the equity market or
which asset class will be the next market leader can be a risky way to
invest. We believe that a well-diversified portfolio of equity and bond
funds is the best way to invest over the long term. Your investment
professional can help you design and implement a portfolio that is right
for you.
The accompanying discussion of investment results, financial statements,
and notes detail the results of fund operations for the fiscal year and
fund holdings as of September 30, 2000. We urge you to review the
discussion of investment results and financial statements at your
convenience.
Again, thank you for investing in the First American family of funds. We
look forward to serving your investment needs next year and beyond.
Sincerely,
/s/ Virginia L. Stringer /s/ Paul A. Dow
VIRGINIA L. STRINGER PAUL A. DOW
Chairperson of the Board Chief Investment Officer and President
First American Investment Funds, First American Asset Management
Inc.
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 1)
<PAGE>
A DRAMATIC YEAR FOR THE MARKETS
Last September, financial markets were on the threshold of a meteoric rally that
would lift the Dow Jones Industrial Average (Dow) and the technology-laden
Nasdaq Composite Index (Nasdaq) to record highs. At the close of 1999, investors
celebrated the fifth consecutive year of double-digit returns fueled by
unprecedented productivity gains--which boosted corporate earnings while helping
to contain inflation--and the lowest unemployment rate in three decades. For a
while, all seemed well with the nation's "Goldilocks" economy (not too hot, not
too cold).
Yet in a comment that would dictate the performance of stocks and bonds over the
ensuing months, Alan Greenspan, Chairman of the Federal Reserve Board, vowed to
continue raising interest rates until the economy cooled. The rate increases
were intended to engineer a soft landing by encouraging consumers and companies
to stop spending so much to purchase new homes, capital equipment, and the like.
STOCKS BOW TO BONDS
The prospect of additional rate hikes and their impact on corporate profits sent
the stock market into a freefall, with the Nasdaq declining 25% during April's
second week. The Dow soon followed suit. The stock market bubble had burst, with
risk returning to the marketplace. The months following April also were subject
to significant levels of market fluctuations. Although the long-term outlook for
equities remains promising, investors can expect to experience more volatility
as the economy continues to slow.
If any clear trends have emerged in the equity market, it's that small-cap
stocks have outperformed large-cap stocks, and value has outperformed growth.
Both are a reversal from the previous two years' trend of a market where
large-cap growth stocks dominated.
(2 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
A DRAMATIC YEAR FOR THE MARKETS
BONDS GAIN MOMENTUM
An unusual event shaped bond markets during the fiscal year. For the first time
in a decade, the yield on 30-year Treasury bonds dipped below the yield on
two-year Treasury notes, creating an inverted yield curve. This event was
triggered by the Treasury Department's decision to use part of the budget
surplus to retire debt by issuing fewer bonds and repurchasing 30-year Treasury
bonds. The scarcity of Treasury bonds sent prices up and yields down. Along the
way, the 10-year Treasury note replaced the 30-year bond as the U.S. bond
market's benchmark.
In all, U.S. government and municipal securities outperformed stocks to post
their strongest results in years. Indeed, with the exception of high-yield
"junk" bonds, most bonds, including mortgage-backed securities and
investment-grade corporate bonds, performed well during the fiscal year.
In closing, an important message to remember amid today's volatile and
fast-paced markets: Diversification among stocks, bonds, and cash can help you
earn more balanced returns over time and give you peace of mind in changing
markets. To help you achieve your long-term goals, First American Funds offers a
spectrum of mutual funds designed to meet any investor's needs and risk
tolerance.
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 3)
<PAGE>
ARIZONA TAX FREE
INVESTMENT OBJECTIVE: MAXIMUM CURRENT INCOME THAT IS EXEMPT FROM BOTH FEDERAL
INCOME TAX AND ARIZONA STATE INCOME TAX TO THE EXTENT CONSISTENT WITH PRUDENT
INVESTMENT RISK
The First American Arizona Tax Free Fund posted a return of 8.36% (Class A
shares returned 8.21% on net asset value) from inception on February 1, 2000,
through the end of the fiscal year. The fund is well ahead of both benchmarks,
outpacing its Lipper peer group by more than 2%. The Lipper Arizona Municipal
Debt Funds Average returned 6.16% and the fund's broad-based benchmark, the
Lehman Municipal Bond Index, was up 6.24% during the same period.
The fund's performance relative to its Lipper and Lehman benchmarks can be
attributed in part to its relatively long duration during a time when yields
were falling (municipal yields have declined more than 40 basis points since the
inception of the fund in February). In addition, the fund was able to lock in
higher yields during the second quarter as rates trended higher and credit
spreads widened.
In Arizona, there has been a gradual shift from the historical agricultural and
mining sectors to the services, trade, transport, utilities, and finance
sectors. The fund has taken advantage of this diversity by investing assets in a
broad array of sectors, which should help protect the fund's assets should there
be an economic downturn. The new issuance year-to-date supply statistics have
actually improved in recent months compared to the shortage of supply
experienced earlier in the year. Although still down from the same period last
year, this improvement in supply has aided the fund in selectively adding
higher-quality, better-structured securities with good call protection.
Going forward, the management team will continue to look for opportunities to
selectively add incremental yield and return through our credit staff's
proprietary review process. The team will also remain focused on improving call
protection when possible and on taking advantage of any widening of spreads or
yield curve inefficiencies that may occur.
ANNUALIZED PERFORMANCE(1)
----------------------------------------------------------------
AS OF SEPTEMBER 30, 2000 SINCE INCEPTION(5)
2/1/2000
----------------------------------------------------------------
Class A NAV 8.21%
----------------------------------------------------------------
Class A POP 5.47%
----------------------------------------------------------------
Class C NAV 7.88%
----------------------------------------------------------------
Class C POP 5.81%
----------------------------------------------------------------
Class Y 8.36%
----------------------------------------------------------------
Lehman Municipal Bond Index(3) 6.24%
----------------------------------------------------------------
Lipper Arizona Municipal Debt
Funds Average(4) 6.16%
----------------------------------------------------------------
(4 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
ARIZONA TAX FREE
VALUE OF A $10,000 INVESTMENT(1),(2) AS OF SEPTEMBER 30, 2000
[PLOT POINTS CHART]
<TABLE>
<CAPTION>
LIPPER
FIRST AMERICAN FIRST AMERICAN FIRST AMERICAN ARIZONA
ARIZONA ARIZONA ARIZONA LEHMAN MUNICIPAL
TAX FREE FUND, TAX FREE FUND, TAX FREE FUND, MUNICIPAL DEBT FUNDS
CLASS A NAV CLASS A POP CLASS Y BOND INDEX(3) AVERAGE(4)
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CLASS A
2/2000 10,000 9,750 10,000 10,000
9/2000 10,671 10,405 10,624 10,617
CLASS Y
2/2000 10,000 10,000 10,000
9/2000 10,686 10,624 10,617
</TABLE>
(1) Past performance does not guarantee future results. The principal value of
an investment and investment return will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
Performance reflects voluntary fee waivers in effect. In the absence of such
fee waivers, total returns would be reduced. Indexes are for illustrative
purposes only and are not available for investment.
Total returns at net asset value ("NAV") reflect performance over the time
period indicated without including the fund's maximum sales charge and
assumes reinvestment of all distributions at net asset value.
Total returns at public offering price ("POP") reflect performance over the
time period indicated including maximum sales charges of 2.50% for Class A
and 1% for Class C shares and the maximum CDSC for Class C shares for the
relevant period. Total returns assume reinvestment of all distributions at
net asset value.
(2) Performance for Class C shares is not presented. Performance for this class
is lower due to higher expenses.
(3) An unmanaged index comprised of fixed rate, investment grade tax-exempt
bonds with remaining maturities of one year or more.
(4) Similar funds as categorized by Lipper, Inc.
(5) The performance since inception of the index for each class is calculated
from the month-end following the inception of the class. Performance of the
fund and the indexes represents cumulative total return as the fund has been
in operation less than one year. First American Funds Annual Report 2000 5
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 5)
<PAGE>
CALIFORNIA INTERMEDIATE TAX FREE
INVESTMENT OBJECTIVE: CURRENT INCOME THAT IS EXEMPT FROM BOTH FEDERAL INCOME TAX
AND CALIFORNIA STATE INCOME TAX TO THE EXTENT CONSISTENT WITH PRESERVATION OF
CAPITAL
The First American California Intermediate Tax Free Fund outpaced both
benchmarks and posted a return of 6.05% for the fiscal year (Class A shares were
up 5.84% on net asset value). The fund's broad-based benchmark, the Lehman
7-Year Municipal Bond Index, was up 5.50%, while its peer group, the Lipper
California Intermediate Municipal Debt Funds Average, delivered a return of
5.78% for the year.
The fund's performance relative to its Lehman and Lipper benchmarks can be
attributed in part to a duration extension policy that was implemented as rates
fell during the first half of 2000. In addition, the fund locked in higher
yields, improved call protection, and harvested tax losses to offset against
future capital gains. The fund also sought to obtain bonds with slightly higher
coupons as a defensive measure to cushion against potential future interest-rate
volatility.
California bonds in general have handily outperformed the rest of the municipal
market. New wealth seeking a safe haven and increasing comfort with the state's
credit quality profile continue to support the California municipal market.
While California market yields are generally lower than the rest of the country,
state taxes remain among the highest.
Going forward, the management team will continue to look for opportunities to
selectively add incremental yield and return through our credit staff's
proprietary review process. The team will also remain focused on improving call
protection when possible and on taking advantage of any widening of spreads or
yield curve inefficiencies that may occur.
ANNUALIZED PERFORMANCE(1)
-------------------------------------------------------------------
AS OF SEPTEMBER 30, 2000 SINCE INCEPTION(4)
1 year 8/8/1997
-------------------------------------------------------------------
Class A NAV 5.84% 4.48%
-------------------------------------------------------------------
Class A POP 3.23% 3.63%
-------------------------------------------------------------------
Class Y 6.05% 4.55%
-------------------------------------------------------------------
Lehman 7-Year Municipal Bond Index(2) 5.50% 4.84%
-------------------------------------------------------------------
Lipper CA Intermediate Municipal
Debt Funds Average(3) 5.78% 4.37%
-------------------------------------------------------------------
(6 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
CALIFORNIA INTERMEDIATE TAX FREE
VALUE OF A $10,000 INVESTMENT(1) AS OF SEPTEMBER 30, 2000
[PLOT POINTS CHART]
<TABLE>
<CAPTION>
FIRST AMERICAN FIRST AMERICAN FIRST AMERICAN LIPPER CA
CALIFORNIA CALIFORNIA CALIFORNIA LEHMAN INTERMEDIATE
INTERMEDIATE INTERMEDIATE INTERMEDIATE 7-YEAR MUNICIPAL
TAX FREE FUND, TAX FREE FUND, TAX FREE FUND, MUNICIPAL DEBT FUNDS
CLASS A NAV CLASS A POP CLASS Y BOND INDEX(2) AVERAGE(3)
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CLASS A
8/1997 10,000 9,750 10,000 10,000
9/1997 10,086 9,834 10,106 10,099
9/1998 10,873 10,601 10,901 10,838
9/1999 10,829 10,559 10,965 10,798
9/2000 11,462 11,175 11,568 11,422
CLASS Y
8/1997 10,000 10,000 10,000
9/1997 10,086 10,106 10,099
9/1998 10,873 10,901 10,838
9/1999 10,840 10,965 10,798
9/2000 11,496 11,568 11,422
</TABLE>
(1) Past performance does not guarantee future results. The principal value of
an investment and investment return will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
Performance reflects voluntary fee waivers in effect. In the absence of such
fee waivers, total returns would be reduced. Indexes are for illustrative
purposes only and are not available for investment.
Total returns at net asset value ("NAV") reflect performance over the time
period indicated without including the fund's maximum sales charge and
assumes reinvestment of all distributions at net asset value.
Total returns at public offering price ("POP") reflect performance over the
time period indicated including maximum sales charges of 2.50% for Class A
shares. Total returns assume reinvestment of all distributions at net asset
value.
(2) An unmanaged index comprised of fixed rate, investment grade tax-exempt
bonds with remaining maturities of one year or more.
(3) Similar funds as categorized by Lipper, Inc.
(4) The performance since inception of the index for each class is calculated
from the month-end following the inception of the class.
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 7)
<PAGE>
CALIFORNIA TAX FREE
INVESTMENT OBJECTIVE: MAXIMUM CURRENT INCOME THAT IS EXEMPT FROM BOTH FEDERAL
INCOME TAX AND CALIFORNIA STATE INCOME TAX TO THE EXTENT CONSISTENT WITH PRUDENT
INVESTMENT RISK
The First American California Tax Free Fund posted a return of 10.38% from
inception on February 1, 2000, through the end of the fiscal year (Class A
shares returned 10.23% on net asset value). The fund is well ahead of its
benchmarks, outpacing both its Lipper peer group and its broad-based benchmark
by nearly 3%. The Lipper California Municipal Debt Funds Average returned 7.38%
and the Lehman Municipal Bond Index was up 6.24% during the same period.
The fund's performance relative to its Lipper and Lehman benchmarks can be
attributed in part to its relatively long duration during a time when yields
were falling (municipal yields have declined more than 40 basis points since the
inception of the fund in February 2000). The fund was able to lock in higher
yields and good call protection when rates moved higher and credit spreads
widened. The fund also established a core position in higher-yielding higher
education bonds, making it one of the fund's largest sector weightings.
California bonds in general have handily outperformed the rest of the municipal
market. New wealth seeking a safe haven and increasing comfort with the state's
credit quality profile continue to support the California municipal market.
While California market yields are generally lower than the rest of the country,
state taxes remain among the highest.
Going forward, the management team will continue to look for opportunities to
selectively add incremental yield and return through our credit staff's
proprietary review process. The team will also remain focused on improving call
protection when possible and on taking advantage of any widening of spreads or
yield curve inefficiencies that may occur.
ANNUALIZED PERFORMANCE(1)
----------------------------------------------------------------
AS OF SEPTEMBER 30, 2000 SINCE INCEPTION(5)
2/1/2000
----------------------------------------------------------------
Class A NAV 10.23%
----------------------------------------------------------------
Class A POP 7.43%
----------------------------------------------------------------
Class C NAV 9.95%
----------------------------------------------------------------
Class C POP 7.86%
----------------------------------------------------------------
Class Y 10.38%
----------------------------------------------------------------
Lehman Municipal Bond Index(3) 6.24%
----------------------------------------------------------------
Lipper California Municipal
Debt Funds Average(4) 7.38%
----------------------------------------------------------------
(8 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
CALIFORNIA TAX FREE
VALUE OF A $10,000 INVESTMENT(1),(2) AS OF SEPTEMBER 30, 2000
[PLOT POINTS CHART]
<TABLE>
<CAPTION>
LIPPER
FIRST AMERICAN FIRST AMERICAN FIRST AMERICAN CALIFORNIA
CALIFORNIA CALIFORNIA CALIFORNIA LEHMAN MUNICIPAL
TAX FREE FUND, TAX FREE FUND, TAX FREE FUND, MUNICIPAL DEBT FUNDS
CLASS A NAV CLASS A POP CLASS Y BOND INDEX(3) AVERAGE(4)
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CLASS A
2/2000 10,000 9,750 10,000 10,000
9/2000 10,851 10,580 10,624 10,737
CLASS Y
2/2000 10,000 10,000 10,000
9/2000 10,865 10,624 10,737
</TABLE>
(1) Past performance does not guarantee future results. The principal value of
an investment and investment return will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
Performance reflects voluntary fee waivers in effect. In the absence of such
fee waivers, total returns would be reduced. Indexes are for illustrative
purposes only and are not available for investment.
Total returns at net asset value ("NAV") reflect performance over the time
period indicated without including the fund's maximum sales charge and
assumes reinvestment of all distributions at net asset value.
Total returns at public offering price ("POP") reflect performance over the
time period indicated including maximum sales charges of 2.50% for Class A
and 1% for Class C shares and the maximum CDSC for Class C shares for the
relevant period. Total returns assume reinvestment of all distributions at
net asset value.
(2) Performance for Class C shares is not presented. Performance for this class
is lower due to higher expenses.
(3) An unmanaged index comprised of fixed rate, investment grade tax-exempt
bonds with remaining maturities of one year or more.
(4) Similar funds as categorized by Lipper, Inc.
(5) The performance since inception of the index for each class is calculated
from the month-end following the inception of the class. Performance of the
fund and the indexes represents cumulative total return as the fund has been
in operation less than one year.
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 9)
<PAGE>
COLORADO INTERMEDIATE TAX FREE
INVESTMENT OBJECTIVE: CURRENT INCOME THAT IS EXEMPT FROM FEDERAL INCOME TAX AND
COLORADO STATE INCOME TAX TO THE EXTENT CONSISTENT WITH PRESERVATION OF CAPITAL
The First American Colorado Intermediate Tax Free Fund posted a return of 4.51%
for the fiscal year (Class A shares were up 4.40% on net asset value). The fund
outpaced its peer group, the Lipper Other States Intermediate Municipal Debt
Funds Average, which returned 4.42%. The fund's broad-based benchmark, the
Lehman 7-Year Municipal Bond Index, was up 5.50% for the year.
The fund's performance can be attributed in part to a duration extension policy
that was implemented as rates fell during the first half of 2000. The fund
locked in higher yields, improved call protection, and harvested tax losses to
offset against future capital gains. In addition, the fund took a small position
in Colorado zero-coupon bonds in order to improve portfolio structure and
flexibility, and sought to obtain bonds with slightly higher coupons as a
defensive measure to cushion against potential future interest-rate volatility.
The fund's performance relative to its Lipper peer group can be attributed to
its good portfolio structure and relatively long duration. The Lehman 7-Year
Municipal Bond Index is an unmanaged benchmark that reflects the performance of
the entire national municipal market. Individual states can experience varying
supply and demand conditions that cause its bonds to perform better or worse
than the overall market. In addition, the index is not subject to expenses or
transaction costs. The fund lagged the Lehman benchmark this year as a result of
these factors.
New Colorado issuance increased 19.5% over the prior year. This increase was
concentrated in funding for transportation, highway expansion, and repair. Other
funding was down due to the strength of the economy and increased tax receipts.
The management team reduced exposure to high-yielding healthcare bonds due to
continued credit stress in this sector, and increased exposure to municipal
lease deals due to favorable rates and strong credit profiles.
Going forward, the management team will continue to look for opportunities to
selectively add incremental yield and return through our credit staff's
proprietary review process. The team will also remain focused on improving call
protection when possible and on taking advantage of any widening of spreads or
yield curve inefficiencies that may occur.
ANNUALIZED PERFORMANCE(1)
------------------------------------------------------------------------------
AS OF SEPTEMBER 30, 2000 SINCE INCEPTION(4)
1 YEAR 5 YEARS 4/4/1994
------------------------------------------------------------------------------
Class A NAV 4.40% 4.45% 5.30%
------------------------------------------------------------------------------
Class A POP 1.83% 3.92% 4.89%
------------------------------------------------------------------------------
Class Y 4.51% 4.41% 5.28%
------------------------------------------------------------------------------
Lehman 7-Year Municipal Bond Index(2) 5.50% 5.24% 5.87%
------------------------------------------------------------------------------
Lipper Other States Intermediate
Municipal Debt Funds Average(3) 4.42% 4.15% 4.78%
------------------------------------------------------------------------------
(10 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
COLORADO INTERMEDIATE TAX FREE
VALUE OF A $10,000 INVESTMENT(1) AS OF SEPTEMBER 30, 2000
[PLOT POINTS CHART]
<TABLE>
<CAPTION>
FIRST AMERICAN FIRST AMERICAN FIRST AMERICAN LIPPER
COLORADO COLORADO COLORADO LEHMAN OTHER STATES
INTERMEDIATE INTERMEDIATE INTERMEDIATE 7-YEAR INTERMEDIATE
TAX FREE FUND, TAX FREE FUND, TAX FREE FUND, MUNICIPAL MUNICIPAL
CLASS A NAV CLASS A POP CLASS Y BOND INDEX(2) OBJECTIVE(3)
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CLASS A
4/1994 10,000 9,750 10,000 10,000
9/1994 10,118 9,865 10,127 10,089
9/1995 10,985 10,710 11,169 10,971
9/1996 11,467 11,180 11,665 11,408
9/1997 12,282 11,975 12,596 12,192
9/1998 13,195 12,865 13,587 13,013
9/1999 13,079 12,752 13,666 12,866
9/2000 13,654 13,313 14,418 13,435
CLASS Y
4/1994 10,000 10,000 10,000
9/1994 10,128 10,127 10,089
9/1995 10,986 11,169 10,971
9/1996 11,468 11,665 11,408
9/1997 12,283 12,596 12,192
9/1998 13,184 13,587 13,013
9/1999 13,042 13,666 12,866
9/2000 13,631 14,418 13,435
</TABLE>
(1) Past performance does not guarantee future results. The principal value of
an investment and investment return will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
Performance reflects voluntary fee waivers in effect. In the absence of such
fee waivers, total returns would be reduced. Indexes are for illustrative
purposes only and are not available for investment.
Total returns at net asset value ("NAV") reflect performance over the time
period indicated without including the fund's maximum sales charge and
assumes reinvestment of all distributions at net asset value.
Total returns at public offering price ("POP") reflect performance over the
time period indicated including maximum sales charges of 2.50% for Class A
shares. Total returns assume reinvestment of all distributions at net asset
value.
(2) An unmanaged index comprised of fixed rate, investment grade tax-exempt
bonds with remaining maturities between six and eight years.
(3) Similar funds as categorized by Lipper, Inc.
(4) The performance since inception of the index for each class is calculated
from the month-end following the inception of the class.
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 11)
<PAGE>
COLORADO TAX FREE
INVESTMENT OBJECTIVE: MAXIMUM CURRENT INCOME THAT IS EXEMPT FROM BOTH FEDERAL
INCOME TAX AND COLORADO STATE INCOME TAX TO THE EXTENT CONSISTENT WITH PRUDENT
INVESTMENT RISK
The First American Colorado Tax Free Fund returned 8.05% (Class A shares were up
7.80% on net asset value) from inception on February 1, 2000, through the end of
the fiscal year. The fund outpaced its Lipper peer group, the Lipper Colorado
Municipal Debt Funds Average which returned 5.65%, by more than 2%. The
broad-based benchmark, the Lehman Municipal Bond Index, was up 6.24% over the
same period.
The fund's performance relative to its Lipper and Lehman benchmarks can be
attributed in part to its relatively long duration during a time when yields
were falling (municipal yields have declined more than 40 basis points since the
inception of the fund in February). In addition, the fund has been able to lock
in higher yields and good call protection as rates have trended up and credit
spreads widened.
New Colorado issuance increased 19.5% during the prior year. This increase was
concentrated in funding for transportation, highway expansion, and repair. Other
funding has declined due to the strength of the economy and increased tax
receipts.
Going forward, the management team will continue to look for opportunities to
selectively add incremental yield and return through our credit staff's
proprietary review process. The team will also remain focused on improving call
protection when possible and on taking advantage of any widening of spreads or
yield curve inefficiencies that may occur.
ANNUALIZED PERFORMANCE(1)
-----------------------------------------------------------------
AS OF SEPTEMBER 30, 2000 SINCE INCEPTION(5)
2/1/2000
-----------------------------------------------------------------
Class A NAV 7.80%
-----------------------------------------------------------------
Class A POP 5.11%
-----------------------------------------------------------------
Class C NAV 7.52%
-----------------------------------------------------------------
Class C POP 5.45%
-----------------------------------------------------------------
Class Y 8.05%
-----------------------------------------------------------------
Lehman Municipal Bond Index(3) 6.24%
-----------------------------------------------------------------
Lipper Colorado Municipal
Debt Funds Average(4) 5.65%
-----------------------------------------------------------------
(12 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
COLORADO TAX FREE
VALUE OF A $10,000 INVESTMENT(1),(2) AS OF SEPTEMBER 30, 2000
[PLOT POINTS CHART]
<TABLE>
<CAPTION>
LIPPER
FIRST AMERICAN FIRST AMERICAN FIRST AMERICAN COLORADO
COLORADO COLORADO COLORADO LEHMAN MUNICIPAL
TAX FREE FUND, TAX FREE FUND, TAX FREE FUND, MUNICIPAL DEBT FUNDS
CLASS A NAV CLASS A POP CLASS Y BOND INDEX(3) AVERAGE(4)
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CLASS A
2/2000 10,000 9,750 10,000 10,000
9/2000 10,653 10,387 10,624 10,568
CLASS Y
2/2000 10,000 10,000 10,000
9/2000 10,678 10,624 10,568
</TABLE>
(1) Past performance does not guarantee future results. The principal value of
an investment and investment return will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
Performance reflects voluntary fee waivers in effect. In the absence of such
fee waivers, total returns would be reduced. Indexes are for illustrative
purposes only and are not available for investment.
Total returns at net asset value ("NAV") reflect performance over the time
period indicated without including the fund's maximum sales charge and
assumes reinvestment of all distributions at net asset value.
Total returns at public offering price ("POP") reflect performance over the
time period indicated including maximum sales charges of 2.50% for Class A
and 1% for Class C shares and the maximum CDSC for Class C shares for the
relevant period. Total returns assume reinvestment of all distributions at
net asset value.
(2) Performance for Class C shares is not presented. Performance for this class
is lower due to higher expenses.
(3) An unmanaged index comprised of fixed rate, investment grade tax-exempt
bonds with remaining maturities of one year or more.
(4) Similar funds as categorized by Lipper, Inc.
(5) The performance since inception of the index for each class is calculated
from the month-end following the inception of the class. Performance of the
fund and the indexes represents cumulative total return as the fund has been
in operation less than one year.
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 13)
<PAGE>
INTERMEDIATE TAX FREE
INVESTMENT OBJECTIVE: CURRENT INCOME THAT IS EXEMPT FROM FEDERAL INCOME TAX TO
THE EXTENT CONSISTENT WITH PRESERVATION OF CAPITAL
The First American Intermediate Tax Free Fund returned 5.11% for the fiscal year
(Class A shares were up 5.10% on net asset value). The fund's peer group, the
Lipper Intermediate Municipal Debt Funds Average, returned 4.62% for the period,
while the fund's broad-based benchmark, the Lehman 7-Year Municipal Bond Index,
posted a return of 5.50% for the period.
The fund's performance relative to the Lipper category can be attributed in part
to a duration extension policy that was implemented as rates fell during the
first half of 2000. In addition, the fund locked in higher yields, improved call
protection, and harvested tax losses to offset against future capital gains. The
fund also sought to obtain bonds with slightly higher coupons as a defensive
measure to cushion against potential future interest-rate volatility.
Underperformance relative to the Lehman index can be explained by the fund's
expenses and transaction costs.
The last 12 months saw a pronounced flattening in the municipal yield curve.
One- to five-year spot rates rose in yield while 10-years and longer enjoyed a
rally. Going forward, the management team will remain cognizant of the flat
yield curve through 10-year rates and scrutinize new additions to the portfolio
in light of a future steepening. The team will continue to look for
opportunities to selectively add incremental yield and return through the credit
staff's proprietary review process.
ANNUALIZED PERFORMANCE(1)
-------------------------------------------------------------------------------
AS OF SEPTEMBER 30, 2000 SINCE INCEPTION(4)
1 YEAR 5 YEARS 10 YEARS 2/4/1994
-------------------------------------------------------------------------------
Class A NAV 5.10% 4.49% 5.49% --
-------------------------------------------------------------------------------
Class A POP 2.45% 3.97% 5.22% --
-------------------------------------------------------------------------------
Class Y 5.11% 4.46% -- 4.23%
-------------------------------------------------------------------------------
Lehman 7-Year Municipal
Bond Index(2) 5.50% 5.24% 6.82% 5.40%
-------------------------------------------------------------------------------
Lipper Intermediate Municipal
Debt Funds Average(3) 4.62% 4.59% 6.15% 4.67%
-------------------------------------------------------------------------------
(14 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
INTERMEDIATE TAX FREE
VALUE OF A $10,000 INVESTMENT(1) AS OF SEPTEMBER 30, 2000
[PLOT POINTS CHART]
<TABLE>
<CAPTION>
LIPPER
FIRST AMERICAN FIRST AMERICAN FIRST AMERICAN LEHMAN INTERMEDIATE
INTERMEDIATE INTERMEDIATE INTERMEDIATE 7-YEAR MUNICIPAL
TAX FREE FUND, TAX FREE FUND, TAX FREE FUND, MUNICIPAL DEBT FUNDS
CLASS A NAV CLASS A POP CLASS Y BOND INDEX(2) AVERAGE(3)
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CLASS A
9/1990 10,000 9,750 10,000 10,000
9/1991 10,912 10,639 11,225 11,080
9/1992 11,701 11,408 12,325 12,112
9/1993 12,714 12,396 13,670 13,456
9/1994 12,555 12,241 13,581 13,308
9/1995 13,704 13,362 14,978 14,496
9/1996 14,314 13,956 15,643 15,162
9/1997 15,293 14,911 16,892 16,281
9/1998 16,370 15,960 18,221 17,458
9/1999 16,242 15,836 18,327 17,315
9/2000 17,070 16,644 19,335 18,114
CLASS Y
2/1994 10,000 10,000 10,000
9/1994 9,888 9,930 9,877
9/1995 10,793 10,951 10,759
9/1996 11,262 11,438 11,253
9/1997 12,022 12,350 12,083
9/1998 12,864 13,322 12,957
9/1999 12,762 13,400 12,850
9/2000 13,414 14,137 13,444
</TABLE>
(1) Past performance does not guarantee future results. The principal value of
an investment and investment return will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
Performance reflects voluntary fee waivers in effect. In the absence of such
fee waivers, total returns would be reduced. Indexes are for illustrative
purposes only and are not available for investment.
Total returns at net asset value ("NAV") reflect performance over the time
period indicated without including the fund's maximum sales charge and
assumes reinvestment of all distributions at net asset value.
Total returns at public offering price ("POP") reflect performance over the
time period indicated including maximum sales charges of 2.50% for Class A.
Total returns assume reinvestment of all distributions at net asset value.
(2) An unmanaged index comprised of fixed rate, investment grade tax-exempt
bonds with remaining maturities between six and eight years.
(3) Similar funds as categorized by Lipper, Inc.
(4) The performance since inception of the index for each class is calculated
from the month-end following the inception of the class.
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 15)
<PAGE>
MINNESOTA INTERMEDIATE TAX FREE
INVESTMENT OBJECTIVE: CURRENT INCOME THAT IS EXEMPT FROM FEDERAL INCOME TAX AND
MINNESOTA STATE INCOME TAX TO THE EXTENT CONSISTENT WITH PRESERVATION OF CAPITAL
The First American Minnesota Intermediate Tax Free Fund returned 5.04% for the
fiscal year (Class A shares were up 4.94% on net asset value). The fund's peer
group, the Lipper Other States Intermediate Municipal Debt Funds Average, was up
4.42% for the year, while the fund's broad-based benchmark, the Lehman 7-Year
Municipal Bond Index, returned 5.50% for the period.
The fund's performance relative to its Lipper peer group can be attributed in
part to a duration extension policy that was implemented as rates fell during
the first half of 2000. In addition, the fund locked in higher yields, improved
call protection, and harvested tax losses to offset against future capital
gains. The fund also sought to obtain bonds with slightly higher coupons as a
defensive measure to cushion against potential future interest rate volatility,
and selectively added to the BBB and nonrated portion of the portfolio as
opportunities arose.
The Lehman 7-Year Municipal Bond Index is an unmanaged benchmark that reflects
the performance of the entire national municipal market. Individual states can
experience varying supply and demand conditions that cause its bonds to perform
better or worse than the overall market. In addition, the index is not subject
to transaction costs or expenses. The fund lagged the Lehman benchmark this year
as a result of these factors.
The last 12 months saw a pronounced flattening in the municipal yield curve.
One- to five-year spot rates rose in yield while 10-years and longer enjoyed a
rally. Going forward, the management team will remain cognizant of the flat
yield curve through 10-year rates and scrutinize new additions to the portfolio
in light of a future steepening. The team will continue to look for
opportunities to selectively add incremental yield and return through the credit
staff's proprietary review process.
ANNUALIZED PERFORMANCE(1)
-------------------------------------------------------------------------------
AS OF SEPTEMBER 30, 2000 SINCE INCEPTION(4)
1 YEAR 5 YEARS 2/25/1994
-------------------------------------------------------------------------------
Class A NAV 4.94% 4.53% 4.43%
-------------------------------------------------------------------------------
Class A POP 2.32% 4.00% 4.03%
-------------------------------------------------------------------------------
Class Y 5.04% 4.49% 4.40%
-------------------------------------------------------------------------------
Lehman 7-Year Municipal Bond Index(2) 5.50% 5.24% 5.40%
-------------------------------------------------------------------------------
Lipper Other States Intermediate
Municipal Debt Funds Average(3) 4.42% 4.15% 4.28%
-------------------------------------------------------------------------------
(16 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
MINNESOTA INTERMEDIATE TAX FREE
VALUE OF A $10,000 INVESTMENT(1) AS OF SEPTEMBER 30, 2000
[PLOT POINTS CHART]
<TABLE>
<CAPTION>
LIPPER
FIRST AMERICAN FIRST AMERICAN FIRST AMERICAN OTHER STATES
MINNESOTA MINNESOTA MINNESOTA LEHMAN INTERMEDIATE
INTERMEDIATE INTERMEDIATE INTERMEDIATE 7-YEAR MUNICIPAL
TAX FREE FUND, TAX FREE FUND, TAX FREE FUND, MUNICIPAL DEBT FUNDS
CLASS A NAV CLASS A POP CLASS Y BOND INDEX(2) AVERAGE(3)
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CLASS A
2/1994 10,000 9,750 10,000 10,000
9/1994 9,852 9,606 9,930 9,856
9/1995 10,686 10,419 10,951 10,718
9/1996 11,199 10,919 11,438 11,145
9/1997 11,951 11,653 12,350 11,911
9/1998 12,764 12,445 13,322 12,714
9/1999 12,709 12,392 13,400 12,570
9/2000 13,337 13,004 14,137 13,125
CLASS Y
2/1994 10,000 10,000 10,000
9/1994 9,863 9,930 9,856
9/1995 10,685 10,951 10,718
9/1996 11,198 11,438 11,145
9/1997 11,917 12,350 11,911
9/1998 12,730 13,322 12,714
9/1999 12,674 13,400 12,570
9/2000 13,288 14,137 13,125
</TABLE>
(1) Past performance does not guarantee future results. The principal value of
an investment and investment return will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
Performance reflects voluntary fee waivers in effect. In the absence of such
fee waivers, total returns would be reduced. Indexes are for illustrative
purposes only and are not available for investment.
Total returns at net asset value ("NAV") reflect performance over the time
period indicated without including the fund's maximum sales charge and
assumes reinvestment of all distributions at net asset value.
Total returns at public offering price ("POP") reflect performance over the
time period indicated including maximum sales charges of 2.50% for Class A
shares. Total returns assume reinvestment of all distributions at net asset
value.
(2) An unmanaged index comprised of fixed rate, investment grade tax-exempt
bonds with remaining maturities between six and eight years.
(3) Similar funds as categorized by Lipper, Inc.
(4) The performance since inception of the index for each class is calculated
from the month-end following the inception of the class.
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 17)
<PAGE>
MINNESOTA TAX FREE
INVESTMENT OBJECTIVE: MAXIMUM CURRENT INCOME THAT IS EXEMPT FROM BOTH FEDERAL
INCOME TAX AND MINNESOTA STATE INCOME TAX TO THE EXTENT CONSISTENT WITH PRUDENT
INVESTMENT RISK
The First American Minnesota Tax Free Fund posted a return of 5.00% (Class A
shares were up 4.75% on net asset value), well ahead of its Lipper peer group
average. The Lipper Minnesota Municipal Debt Funds Average was up 4.16% for the
year, while the fund's broad-based benchmark, the Lehman Municipal Bond Index,
returned 6.18% for the year.
The fund's management team implemented a duration extension policy as rates fell
during the first half of 2000. Rates trended higher for a brief period in the
second quarter and the fund was able to lock in higher yields, improve call
protection, and harvest tax losses to offset capital gains. The team has been
swapping bonds that have been called or are callable in four- to seven-years for
longer maturity, higher-yielding bonds with nine- to 10-years of call
protection. The fund's performance relative to its Lipper peer group can be
attributed to its portfolio structure and relatively long duration. The Lehman
Municipal Bond Index is an unmanaged benchmark that reflects the performance of
the entire national municipal market. Individual states can experience varying
supply and demand conditions that cause its bonds to perform better or worse
than the overall market. In addition, the index is not subject to expenses or
transaction costs. The fund lagged the Lehman benchmark this year largely as a
result of these factors.
Minnesota's economy remains strong, with low unemployment and strong tax
revenues. New issue supply is down about 3% from the prior year, and has been
dominated by healthcare and school issues. However, the bulk of our new
purchases have been electric and housing bonds.
Going forward, the team will continue to look for opportunities to selectively
add incremental yield and return through our credit staff's proprietary review
process. The team will also remain focused on improving call protection when
possible and on taking advantage of any widening of spreads or yield curve
inefficiencies that may occur.
ANNUALIZED PERFORMANCE(1)
--------------------------------------------------------------------------------
AS OF SEPTEMBER 30, 2000 SINCE INCEPTION(5)
--------------------
1 YEAR 5 YEARS 10 YEARS 8/1/1997 2/1/1999
--------------------------------------------------------------------------------
Class A NAV 4.75% 5.25% 6.81% -- --
--------------------------------------------------------------------------------
Class A POP 2.17% 4.71% 6.54% -- --
--------------------------------------------------------------------------------
Class C NAV 4.25% -- -- -- 0.65%
--------------------------------------------------------------------------------
Class C POP 2.20% -- -- -- 0.07%
--------------------------------------------------------------------------------
Class Y 5.00% -- -- 4.18% --
--------------------------------------------------------------------------------
Lehman Municipal Bond Index(3) 6.18% 5.79% 7.32% 4.93% 2.52%
--------------------------------------------------------------------------------
Lipper MN Municipal Debt
Funds Average(4) 4.16% 4.52% 6.33% 3.44% 0.61%
--------------------------------------------------------------------------------
(18 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
MINNESOTA TAX FREE
VALUE OF A $10,000 INVESTMENT(1),(2) AS OF SEPTEMBER 30, 2000
[PLOT POINTS CHART]
<TABLE>
<CAPTION>
FIRST AMERICAN FIRST AMERICAN FIRST AMERICAN LIPPER MN
MINNESOTA MINNESOTA MINNESOTA LEHMAN MUNICIPAL
TAX FREE FUND, TAX FREE FUND, TAX FREE FUND, MUNICIPAL DEBT FUNDS
CLASS A NAV CLASS A POP CLASS Y BOND INDEX(3) AVERAGE(4)
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CLASS A
9/1990 10,000 9,750 10,000 10,000
9/1991 11,249 10,968 11,319 11,146
9/1992 12,324 12,016 12,503 12,173
9/1993 13,867 13,521 14,096 13,672
9/1994 13,433 13,098 13,752 13,237
9/1995 14,962 14,588 15,291 14,417
9/1996 15,896 15,498 16,214 15,164
9/1997 17,218 16,788 17,679 16,366
9/1998 18,696 18,228 19,220 17,649
9/1999 18,451 17,989 19,086 17,258
9/2000 19,327 18,844 20,265 17,975
CLASS Y
8/1997 10,000 10,000 10,000
9/1997 10,118 10,119 10,108
9/1998 11,011 11,001 10,901
9/1999 10,894 10,924 10,659
9/2000 11,438 11,599 11,102
</TABLE>
(1) Past performance does not guarantee future results. The principal value of
an investment and investment return will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
Performance reflects voluntary fee waivers in effect. In the absence of such
fee waivers, total returns would be reduced. Indexes are for illustrative
purposes only and are not available for investment.
Total returns at net asset value ("NAV") reflect performance over the time
period indicated without including the fund's maximum sales charge and
assumes reinvestment of all distributions at net asset value.
Total returns at public offering price ("POP") reflect performance over the
time period indicated including maximum sales charges of 2.50% for Class A
and 1% for Class C shares and the maximum CDSC for Class C shares for the
relevant period. Total returns assume reinvestment of all distributions at
net asset value.
On July 31, 1998, the Minnesota Tax Free Fund became the successor by merger
to the Piper Minnesota Tax-Exempt Fund, a series of Piper Funds Inc. Prior
to the merger, the First American Fund had no assets or liabilities.
Performance presented prior to July 31, 1998 represents that of the Piper
Minnesota Tax-Exempt Fund.
(2) Performance for Class C shares is not presented. Performance of this class
is lower due to higher expenses.
(3) An unmanaged index comprised of fixed rate, investment grade tax-exempt
bonds with remaining maturities of one year or more.
(4) Similar funds as categorized by Lipper, Inc.
(5) The performance since inception of the index for each class is calculated
from the month-end following the inception of the class.
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 19)
<PAGE>
OREGON INTERMEDIATE TAX FREE
INVESTMENT OBJECTIVE: CURRENT INCOME THAT IS EXEMPT FROM FEDERAL INCOME TAX AND
OREGON STATE INCOME TAX TO THE EXTENT CONSISTENT WITH PRESERVATION OF CAPITAL
The First American Oregon Intermediate Tax Free Fund returned 4.78% for the
fiscal year (Class A shares were up 4.79% on net asset value), outpacing its
Lipper peer group. The Lipper Other States Intermediate Municipal Debt Funds
Average was up 4.42% for the year, while the fund's broad-based benchmark, the
Lehman 7-Year Municipal Bond Index, returned 5.50%.
The fund's management team implemented a duration extension policy as rates fell
during the first half of 2000. Rates trended higher for a brief period in the
second quarter and the fund was able to lock in higher yields, improve call
protection, and harvest tax losses to offset capital gains. The fund also sought
to obtain bonds with slightly higher coupons as a defensive measure to cushion
against potential future interest-rate volatility, and selectively added to the
BBB and non-rated portion of the portfolio as opportunities arose.
The fund's performance relative to its Lipper peer group can be attributed to
its portfolio structure and relatively long duration. The Lehman 7-Year
Municipal Bond Index is an unmanaged benchmark that reflects the performance of
the entire national municipal market. Individual states can experience varying
supply and demand conditions that cause its bonds to perform better or worse
than the overall market. In addition, the index is not subject to transaction
costs or expenses. The fund lagged the Lehman benchmark this year largely as a
result of these factors.
The last 12 months saw a pronounced flattening in the municipal yield curve.
One- to five-year spot rates rose in yield while 10-years and longer enjoyed a
rally. Oregon issuance declined nearly 27% in year-over-year comparisons.
Similar to the nation as a whole, new money issuance has been keeping pace with
prior years, but refunding volume has dropped to virtually nothing. Education,
development, and transportation have been the leading sources of new issuance.
New schools, Portland urban renewal, and airport light rail transportation are a
few of the projects that have floated debt.
Going forward, the management team will remain cognizant of the flat yield curve
through 10-years and scrutinize new additions to the portfolio in light of a
future steepening. The team will continue to look for opportunities to
selectively add incremental yield and return through the credit staff's
proprietary review process. It will also remain focused on improving call
protection when possible and on taking advantage of any widening of spreads or
yield curve inefficiencies that may occur.
ANNUALIZED PERFORMANCE(1)
---------------------------------------------------------------------
AS OF SEPTEMBER 30, 2000
1 YEAR 5 YEARS 10 YEARS
---------------------------------------------------------------------
Class A NAV 4.79% 4.32% 5.77%
---------------------------------------------------------------------
Class A POP 2.16% 3.78% 5.50%
---------------------------------------------------------------------
Class Y 4.78% 4.32% 5.77%
---------------------------------------------------------------------
Lehman 7-Year Municipal Bond Index(2) 5.50% 5.24% 6.82%
---------------------------------------------------------------------
Lipper Other States Intermediate
Municipal Debt Funds Average(3) 4.42% 4.15% 5.62%
---------------------------------------------------------------------
(20 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
OREGON INTERMEDIATE TAX FREE
VALUE OF A $10,000 INVESTMENT(1) AS OF SEPTEMBER 30, 2000
[PLOT POINTS CHART]
<TABLE>
<CAPTION>
LIPPER
FIRST AMERICAN FIRST AMERICAN FIRST AMERICAN OTHER STATES
OREGON OREGON OREGON LEHMAN INTERMEDIATE
INTERMEDIATE INTERMEDIATE INTERMEDIATE 7-YEAR MUNICIPAL
TAX FREE FUND, TAX FREE FUND, TAX FREE FUND, MUNICIPAL DEBT FUNDS
CLASS A NAV CLASS A POP CLASS Y BOND INDEX(2) AVERAGE(3)
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CLASS A
9/1990 10,000 9,750 10,000 10,000
9/1991 11,175 10,895 11,225 11,002
9/1992 12,131 11,827 12,325 12,012
9/1993 13,260 12,928 13,670 13,311
9/1994 13,143 12,814 13,581 13,068
9/1995 14,187 13,832 14,978 14,212
9/1996 14,714 14,346 15,643 14,777
9/1997 15,784 15,389 16,892 15,793
9/1998 16,835 16,414 18,221 16,857
9/1999 16,724 16,306 18,327 16,661
9/2000 17,525 17,087 19,335 17,398
CLASS Y
9/1990 10,000 10,000 10,000
9/1991 11,175 11,225 11,002
9/1992 12,131 12,325 12,012
9/1993 13,260 13,670 13,311
9/1994 13,143 13,581 13,068
9/1995 14,187 14,978 14,212
9/1996 14,714 15,643 14,777
9/1997 15,784 16,892 15,793
9/1998 16,835 18,221 16,857
9/1999 16,724 18,327 16,661
9/2000 17,524 19,335 17,398
</TABLE>
(1) Past performance does not guarantee future results. The principal value of
an investment and investment return will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
Performance reflects voluntary fee waivers in effect. In the absence of such
fee waivers, total returns would be reduced. Indexes are for illustrative
purposes only and are not available for investment.
Total returns at net asset value ("NAV") reflect performance over the time
period indicated without including the fund's maximum sales charge and
assumes reinvestment of all distributions at net asset value.
Total returns at public offering price ("POP") reflect performance over the
time period indicated including maximum sales charges of 2.50% for Class A.
Total returns assume reinvestment of all distributions at net asset value.
Performance prior to August 8, 1997 is that of Oregon Municipal Bond Trust
Fund, a predecessor common trust fund. On August 8, 1997, substantially all
of the assets of Oregon Municipal Bond Trust Fund were transferred into
Oregon Intermediate Tax Free Fund. The objectives, policies, and guidelines
of the two funds were, in all material respects, identical. Oregon Municipal
Bond Trust Fund's performance is adjusted to reflect Oregon Intermediate Tax
Free Fund's Class Y share fees and expenses, before any fee waivers. Oregon
Municipal Bond Trust Fund was not registered under the Investment Company
Act of 1940 and therefore was not subject to certain investment restrictions
that might have adversely affected performance.
(2) An unmanaged index comprised of fixed rate, investment grade tax-exempt
bonds with remaining maturities between six and eight years.
(3) Similar funds as categorized by Lipper, Inc.
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 21)
<PAGE>
TAX FREE
INVESTMENT OBJECTIVE: MAXIMUM CURRENT INCOME THAT IS EXEMPT FROM FEDERAL INCOME
TAX TO THE EXTENT CONSISTENT WITH PRUDENT INVESTMENT RISK
The First American Tax Free Fund posted a return of 5.00% for the fiscal year
(Class A shares were up 4.75% on net asset value), outpacing its Lipper peer
group average. The Lipper General Municipal Debt Funds Average returned 4.74%
for the year, while the fund's broad-based benchmark, the Lehman Municipal Bond
Index, increased 6.18%.
The management team implemented a duration extension policy as rates fell during
the first half of 2000. In addition, the fund locked in higher yields, improved
call protection, and harvested tax losses to offset capital gains.
The fund received strong cash inflows throughout the year, which slightly
detracted from performance in the short term while the new money was being
invested. National new issue supply is down about 20% over the same period last
year, and as a result, the fund experienced a slight cash build-up while
selectively investing in longer-maturity and income-oriented assets. The fund
has been finding opportunities in relatively low volume states such as Iowa and
Minnesota, and in Texas, which has recently experienced a relatively high volume
of issuance. The fund's underperformance relative to the Lehman benchmark can be
attributed in part to its cash position. In addition, expenses and transaction
costs reduce the fund's performance, while the index is not subject to these
costs.
Going forward, the team will continue to look for opportunities to selectively
add incremental yield and return through the credit staff's proprietary review
process. The team will also remain focused on improving call protection when
possible and on taking advantage of any widening of spreads or yield curve
inefficiencies that may occur.
ANNUALIZED PERFORMANCE(1)
--------------------------------------------------------------------------------
AS OF SEPTEMBER 30, 2000 SINCE INCEPTION(5)
--------------------
1 YEAR 5 YEARS 10 YEARS 8/3/1998 2/1/1999
--------------------------------------------------------------------------------
Class A NAV 4.75% 5.08% 6.73% -- --
--------------------------------------------------------------------------------
Class A POP 2.14% 4.56% 6.46% -- --
--------------------------------------------------------------------------------
Class C NAV 4.26% -- -- -- -0.09%
--------------------------------------------------------------------------------
Class C POP 2.19% -- -- -- -0.67%
--------------------------------------------------------------------------------
Class Y 5.00% -- -- 2.33% --
--------------------------------------------------------------------------------
Lehman Municipal Bond Index(3) 6.18% 5.79% 7.32% 3.18% 2.52%
--------------------------------------------------------------------------------
Lipper General Municipal Debt
Funds Average(4) 4.74% 4.76% 6.69% 1.33% 0.63%
--------------------------------------------------------------------------------
(22 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
TAX FREE
VALUE OF A $10,000 INVESTMENT(1),(2) AS OF SEPTEMBER 30, 2000
[PLOT POINTS CHART]
<TABLE>
<CAPTION>
LIPPER
GENERAL
FIRST AMERICAN FIRST AMERICAN FIRST AMERICAN LEHMAN MUNICIPAL
TAX FREE FUND, TAX FREE FUND, TAX FREE FUND, MUNICIPAL DEBT FUNDS
CLASS A NAV CLASS A POP CLASS Y BOND INDEX(3) AVERAGE(4)
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CLASS A
9/1990 10,000 9,750 10,000 10,000
9/1991 11,330 11,047 11,319 11,313
9/1992 12,540 12,227 12,503 12,492
9/1993 14,391 14,031 14,096 14,153
9/1994 13,566 13,227 13,752 13,604
9/1995 14,964 14,590 15,291 14,936
9/1996 15,924 15,526 16,214 15,780
9/1997 17,372 16,938 17,679 17,153
9/1998 18,833 18,362 19,220 18,564
9/1999 18,304 17,846 19,086 18,000
9/2000 19,173 18,694 20,265 18,853
CLASS Y
8/1998 10,000 10,000 10,000
9/1998 10,136 10,125 10,120
9/1999 9,866 10,054 9,812
9/2000 10,360 10,675 10,277
</TABLE>
(1) Past performance does not guarantee future results. The principal value of
an investment and investment return will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
Performance reflects voluntary fee waivers in effect. In the absence of such
fee waivers, total returns would be reduced. Indexes are for illustrative
purposes only and are not available for investment.
Total returns at net asset value ("NAV") reflects performance over the time
period indicated without including the fund's maximum sales charge and
assumes reinvestment of all distributions at net asset value.
Total returns at public offering price ("POP") reflects performance over the
time period indicated including maximum sales charges of 2.50% for Class A
and 1% for Class C shares and the maximum CDSC for Class C shares for the
relevant period. Total returns assume reinvestment of all distributions at
net asset value.
On July 31, 1998, the Tax Free Fund became the successor by merger to the
Piper National Tax-Exempt Fund, a series of Piper Funds Inc. Prior to the
merger, the First American Fund had no assets or liabilities. Performance
presented prior to July 31, 1998 represents that of the Piper National
Tax-Exempt Fund.
(2) Performance of Class C shares is not presented. Performance of this class is
lower due to higher expenses.
(3) An unmanaged index comprised of fixed rate, investment grade tax-exempt
bonds with remaining maturities between six and eight years.
(4) Similar funds as categorized by Lipper, Inc.
(5) The performance since inception of the index for each class is calculated
from the month-end following the inception of the class.
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 23)
<PAGE>
(This page has been left blank intentionally.)
<PAGE>
REPORT OF INDEPENDENT AUDITORS SEPTEMBER 30, 2000
To the Shareholders and Board of Directors
First American Investment Funds, Inc.
We have audited the accompanying statements of net assets of the Arizona
Tax Free, California Intermediate Tax Free, California Tax Free, Colorado
Intermediate Tax Free, Colorado Tax Free, Intermediate Tax Free, Minnesota
Intermediate Tax Free, Minnesota Tax Free, Oregon Intermediate Tax Free and
Tax Free Funds (certain funds constituting First American Investment Funds,
Inc.) (the "Funds") as of September 30, 2000, and the related statements of
operations for the period then ended, and the statements of changes in net
assets and financial highlights for the periods ended subsequent to
September 30, 1998. These financial statements and financial highlights are
the responsibility of the Funds' management. Our responsibility is to
express an opinion on these financial statements and financial highlights
based on our audits. The financial highlights for the periods presented
through September 30, 1998, were audited by other auditors whose report
dated November 13, 1998, expressed an unqualified opinion on those
financial highlights.
We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements and
financial highlights. Our procedures included confirmation of securities
owned as of September 30, 2000, by correspondence with the custodian and
brokers. As to certain securities relating to uncompleted transactions, we
performed other auditing procedures. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the 2000 and 1999 financial statements and financial
highlights referred to above present fairly, in all material respects, the
financial position of each of the funds listed above of First American
Investment Funds, Inc. at September 30, 2000, the results of their
operations, changes in their net assets and their financial highlights in
conformity with accounting principles generally accepted in the United
States.
/s/ Ernst & Young LLP
Minneapolis, Minnesota
November 3, 2000
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 25)
<PAGE>
STATEMENTS OF NET ASSETS SEPTEMBER 30, 2000
ARIZONA TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
MUNICIPAL BONDS -- 100.0%
REVENUE BONDS -- 76.4%
BUILDING -- 12.6%
Gilbert Industrial Development Authority, Southwest
Student Services, Callable 02/01/09 @ 102
5.850%, 02/01/19 $1,300 $ 1,209
Greater Arizona Infrastructure Development Authority,
Series A, Callable 08/01/08 @ 102 (MBIA)
5.625%, 08/01/20 200 201
Puerto Rico Public Buildings Authority, Series L,
Callable 07/01/03 @ 101.5 (COMGTY)
5.750%, 07/01/16 150 153
--------------
1,563
--------------
EDUCATION -- 2.6%
Arizona State Student Loan Acquisition Authority,
Series A, Callable 11/01/09 @ 102 (AMT)
5.900%, 05/01/24 100 102
Puerto Rico, Ana G. Mendez University Project,
Callable 02/01/09 @ 101
5.375%, 02/01/19 75 69
University of Arizona Board of Regents, Series A,
Callable 06/01/09 @ 100 (FGIC)
5.800%, 06/01/24 150 152
--------------
323
--------------
HEALTHCARE -- 9.3%
Arizona Health Facilities Authority, Phoenix
Childrens Hospital, Series A
5.375%, 11/15/09 300 298
Johnson City, Tennessee Health & Elderly Facilities
Authority, Callable 07/01/12 @ 103
7.500%, 07/01/25 100 96
Mesa Industrial Development Authority, Discovery
Health System, Series A,
Callable 01/01/10 @ 101 (MBIA)
5.750%, 01/01/25 500 502
Yuma Industrial Development Authority, Yuma
Regional Medical Center,
Callable 08/01/07 @ 102 (MBIA)
5.500%, 08/01/17 250 250
--------------
1,146
--------------
HOUSING -- 21.3%
Douglas Community Housing Corporation, Rancho
La Perilla, Callable 01/20/10 @ 102 (GNMA)
5.900%, 07/20/20 500 504
6.000%, 07/20/25 475 478
Maricopa County Industrial Development Authority,
Avalon Apartments, Series A,
Callable 04/01/10 @ 102 (AG)
6.100%, 04/01/13 105 107
6.350%, 04/01/30 200 203
Maricopa County Industrial Development Authority,
Bay Club At Mesa Cove, Series A,
Callable 09/01/10 @ 103 (MBIA)
5.700%, 09/01/20 400 397
ARIZONA TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Maricopa County Industrial Development Authority,
Single Family Mortgages, Series B-2,
Callable 01/01/10 @ 101.5 (AMT) (GNMA)
5.750%, 01/01/13 $ 265 $ 270
Maricopa County Industrial Development Authority,
Sun King Apartments, Series A,
Callable 05/01/10 @ 102
6.750%, 11/01/18 260 269
6.750%, 05/01/31 200 205
Phoenix Industrial Development Authority,
The Phoenix Authority, Series 1A,
Callable 06/01/10 @ 102 (GNMA) (FNMA) (FHLMC)
5.875%, 06/01/16 200 205
--------------
2,638
--------------
TAX REVENUE -- 7.4%
Phoenix Civic Improvements, Callable 07/01/09 @ 101
5.750%, 07/01/16 300 309
Surprise Municipal Property Corporation,
Callable 07/01/09 @ 101 (FGIC)
5.700%, 07/01/20 300 304
Tempe, Excise Tax, Series A, Callable 07/01/09 @ 100
5.625%, 07/01/20 300 302
--------------
915
--------------
TRANSPORTATION -- 8.7%
Arizona State Transportation Board, Highway Revenue,
Callable 07/01/09 @ 100
5.750%, 07/01/18 200 205
Arizona State Transportation Board, Highway Revenue,
Series A
5.000%, 07/01/09 400 406
Mesa Street & Highway Improvements,
Callable 07/01/09 @ 100 (FSA)
5.500%, 07/01/16 100 101
Puerto Rico Commonwealth, Highway &
Transportation Authority,
Callable 07/01/03 @ 101.5
5.500%, 07/01/19 75 75
Tucson Street & Highway Improvements,
Series 1994-E, Callable 07/01/10 @ 100 (FGIC)
5.000%, 07/01/18 300 286
--------------
1,073
--------------
UTILITIES -- 14.5%
Chandler Water & Sewer Improvements,
Callable 07/01/10 @ 101 (FSA)
5.800%, 07/01/17 250 259
Oro Valley Municipal Water Systems,
Callable 07/01/08 @ 101 (MBIA)
5.550%, 07/01/17 100 101
Peoria Water & Sewer Revenue,
Callable 07/01/09 @ 100 (FGIC)
5.000%, 07/01/13 400 394
Phoenix Civic Improvements Water System,
Callable 07/01/04 @ 102
5.500%, 07/01/24 100 98
The accompanying notes are an integral part of the financial statements.
(26 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
ARIZONA TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Puerto Rico Electric Power Authority, Series X,
Callable 07/01/05 @ 100
5.500%, 07/01/25 $ 100 $ 97
Salt River Project, Agricultural Improvement & Power
District, Series A, Callable 01/01/03 @ 100
5.500%, 01/01/19 135 134
Salt River Project, Agricultural Improvement & Power
District, Series B, Callable 01/01/03 @ 102
5.250%, 01/01/19 110 106
Salt River Project, Agricultural Improvement & Power
District, Series C, Callable 01/01/02 @ 100
5.500%, 01/01/28 165 160
Tucson Water, Series 1994-A (MBIA)
6.250%, 07/01/16 170 187
Tucson Water, Series D, Callable 07/01/09 @ 100 (FGIC)
5.400%, 07/01/17 250 251
--------------
1,787
--------------
TOTAL REVENUE BONDS 9,445
--------------
GENERAL OBLIGATIONS -- 18.3%
Chandler Public & Recreational Improvements,
Callable 07/01/10 @ 101
5.800%, 07/01/18 250 259
Maricopa County School District #11, Peoria Unit,
Callable 07/01/09 @ 101 (FGIC)
5.500%, 07/01/14 100 102
Maricopa County School District #11, Peoria Unit,
Callable 04/01/09 @ 101 (FGIC)
5.500%, 07/01/15 120 122
Peoria, Callable 04/01/09 @ 100 (FGIC)
5.400%, 04/01/15 100 101
5.000%, 04/01/18 75 71
5.000%, 04/01/19 125 117
Phoenix, Callable 07/01/10 @ 100
5.250%, 07/01/19 350 341
Phoenix, Callable 07/01/07 @ 102
5.250%, 07/01/20 250 243
Pima County Unified School District #6, Marana,
Series A, Callable 07/01/10 @ 101 (FGIC)
5.250%, 07/01/15 250 247
Pima County Unified School District #12, Sunnyside,
Callable 07/01/09 @ 100 (FGIC)
5.300%, 07/01/13 150 151
Scottsdale, Callable 07/01/09 @ 100
5.500%, 07/01/22 250 249
Tucson
5.500%, 07/01/18 250 253
--------------
2,256
--------------
CERTIFICATES OF PARTICIPATION -- 5.3%
Navajo County Municipal Property Corporation,
Jail Facility (ACA)
5.625%, 07/01/09 310 313
Tucson, Callable 07/01/08 @ 100 (MBIA)
5.500%, 07/01/15 200 202
University of Arizona Parking & Student Housing
Authority, Callable 06/01/09 @ 100 (AMBAC)
5.750%, 06/01/19 140 143
--------------
658
--------------
TOTAL MUNICIPAL BONDS
(Cost $12,084) 12,359
--------------
ARIZONA TAX FREE FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000)
--------------------------------------------------------------------------------
RELATED PARTY MONEY MARKET FUND -- 0.4%
First American Tax Free Obligations Fund (A) 55,157 $ 55
--------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $55) 55
--------------
TOTAL INVESTMENTS -- 100.4%
(Cost $12,139) 12,414
--------------
OTHER ASSETS AND LIABILITIES, NET -- (0.4%) (54)
--------------
NET ASSETS:
Portfolio Capital--Class A ($.0001 par value--2 billion
authorized) based on 924,823 outstanding shares 9,450
Portfolio Capital--Class C ($.0001 par value--2 billion
authorized) based on 2,085 outstanding shares 21
Portfolio Capital--Class Y ($.0001 par value--2 billion
authorized) based on 255,469 outstanding shares 2,617
Accumulated net realized loss on investments (3)
Net unrealized appreciation of investments 275
--------------
TOTAL NET ASSETS -- 100.0% $ 12,360
--------------
Net asset value and redemption price per
share -- Class A $ 10.45
Maximum sales charge of 2.50% (B) 0.27
--------------
Offering price per share -- Class A $ 10.72
--------------
Net asset value and redemption price per
share -- Class C (C) $ 10.44
Maximum sales charge of 1.00% (D) 0.11
--------------
Offering price per share -- Class C $ 10.55
--------------
Net asset value, offering price, and redemption
price per share -- Class Y $ 10.45
--------------
(A) The 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) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 2.50%.
(C) Class C has a contingent deferred sales charge. For a description of a
possible redemption charge, see the notes to the financial statements.
(D) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%.
ACA--American Capital Access
AMBAC--American Municipal Bond Assurance Corporation
AMT--Alternative Minimum Tax. As of September 30, 2000, the aggregate market
value of securities subject to the AMT was $372,000, which represents 3.0%
of net assets.
AG--Asset Guaranty
COMGTY--Commonwealth Guaranty
FGIC--Financial Guaranty Insurance Corporation
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
FSA--Financial Security Assurance
GNMA--Government National Mortgage Association
MBIA--Municipal Bond Insurance Association
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 27)
<PAGE>
STATEMENTS OF NET ASSETS SEPTEMBER 30, 2000
CALIFORNIA INTERMEDIATE TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
MUNICIPAL BONDS -- 98.6%
REVENUE BONDS -- 56.3%
AUTHORITY -- 2.1%
San Francisco Bay Area Transportation
Financing Authority (ACA)
5.500%, 08/01/05 $ 690 $ 712
San Jose Financing Authority, Convention Center
Project, Series C (MLO)
5.750%, 09/01/01 250 254
--------------
966
--------------
BUILDING -- 2.0%
California State Public Works, Department of
Corrections, Series A (AMBAC) (MLO)
6.000%, 01/01/06 545 587
Inglewood Public Finance Authority (AMBAC)
5.900%, 05/01/01 100 101
Sacramento City Financing Authority,
Callable 06/01/10 @ 101
5.400%, 06/01/18 205 206
--------------
894
--------------
EDUCATION -- 6.7%
Abag Financial Authority, Schools of the
Sacred Heart , Series A
5.800%, 06/01/08 200 207
California State Higher Educational Facilities
Authority, Fresno Pacific University
5.300%, 03/01/04 255 260
5.650%, 03/01/07 380 394
5.750%, 03/01/08 400 418
California State Higher Educational Facilities
Authority, Occidental College Project,
Callable 10/01/07 @ 102 (MBIA)
5.300%, 10/01/10 500 528
California State Higher Educational Facilities
Authority, University of La Verne & Western
University of Health Sciences, Series B
6.000%, 06/01/10 495 516
California State Higher Educational Facilities
Authority, University of Redlands, Series A
5.550%, 06/01/09 225 237
California State Higher Educational Facilities
Authority, University of Redlands, Series A,
Callable 06//01/10 @ 101
5.700%, 06/01/11 250 265
California State Public Works Board, Various
University Projects
5.900%, 10/01/01 100 102
5.000%, 06/01/03 150 153
--------------
3,080
--------------
HEALTHCARE -- 4.8%
California State Health Facilities Authority,
Callable 08/01/08 @100
5.375%, 08/01/09 250 263
CALIFORNIA INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
California State Public Works Board,
Department of Health Services,
Callable 11/01/09 @ 101 (MLO) (MBIA)
5.200%, 11/01/12 $ 500 $ 520
California Statewide Communities Development
Authority, Los Angeles Orthopedic Hospital,
Callable 06/01/07 @ 101 (AMBAC)
5.000%, 06/01/12 150 151
John C. Fremont Hospital District, Health Facility (CMI)
6.000%, 06/01/04 245 254
Marysville Hospital, Series A,
Callable 01/01/09 @ 102 (AMBAC)
5.000%, 01/01/10 500 514
Palomar Pomerado, Health Systems (MBIA)
4.600%, 11/01/08 500 505
--------------
2,207
--------------
HOUSING -- 8.8%
Abag Financial Authority, Archstone Redwood
Housing Project, Series A
5.300%, 10/01/08 790 793
California Rural Home Mortgage Finance Authority,
Single Family Mortgage,
Series D (AMT) (GNMA) (FNMA)
5.250%, 06/01/10 300 303
California State Housing Finance Agency,
Series E (MBIA)
5.850%, 08/01/04 150 153
California State Housing Finance Agency, Series G,
Callable 08/01/04 @ 102
6.550%, 02/01/05 150 154
California Statewide Community Development
Authority, Archstone Communities Trust,
Mandatory Put 06/01/08 @ 100
5.300%, 06/01/29 500 504
California Statewide Community Development
Authority, Archstone Seascape,
Mandatory Put 06/01/08 @ 100
5.250%, 06/01/29 500 495
California Statewide Community Development
Authority, Evans Withycombe, Mandatory
Put 06/15/09 @ 100
5.200%, 12/01/29 500 499
Redondo Beach Redevelopment Agency, Residential
Mortgages, Series A (FNMA)
5.150%, 06/01/03 35 35
Sacramento County Multifamily Housing,
Fairways I Apartments, Mandatory
Put 02/01/03 @ 100 (FNMA)
5.875%, 02/01/08 85 85
Sacramento County Multifamily Housing,
Parcwood Apartments, Mandatory
Put 09/01/02 @ 100 (CGLI)
4.800%, 03/01/06 1,000 998
--------------
4,019
--------------
The accompanying notes are an integral part of the financial statements.
(28 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
CALIFORNIA INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
INDUSTRIAL DEVELOPMENT -- 1.5%
Puerto Rico Industrial, Tourist, Educational Medical
& Environmental Control Facilities,
Ascension Health
5.500%, 11/15/09 $ 650 $ 680
--------------
PARK DISTRICT -- 2.8%
Los Angeles County Public Works Financing
Authority, Regional Park & Open Space District,
Series A, Escrowed to Maturity
5.500%, 10/01/02 500 513
5.625%, 10/01/03 500 521
Los Angeles County Public Works Financing Authority,
Regional Park & Open Space District, Series A,
Callable 10/01/07 @ 101
5.000%, 10/01/19 265 254
--------------
1,288
--------------
SANITATION DISTRICT -- 1.2%
Los Angeles Municipal Improvement Corporation
Sanitation Equipment (FSA) (MLO)
6.000%, 02/01/07 500 545
--------------
SCHOOL DISTRICT -- 3.2%
Golden West Schools Financing Authority,
Series A (MBIA)
5.700%, 02/01/13 720 780
5.750%, 02/01/14 620 672
--------------
1,452
--------------
TAX REVENUE -- 5.8%
Los Angeles County Public Works Financing Authority,
Capital Construction, Callable 03/01/03 @ 102
4.800%, 03/01/04 400 406
Los Angeles County Transportation Commission,
Series B (FGIC)
5.875%, 07/01/02 250 257
6.000%, 07/01/04 250 265
Orange County Transportation Authority,
Callable 02/15/02 @ 102
5.700%, 02/15/03 900 930
Santa Ana Community Redevelopment Agency,
Tax Allocation, Series A,
Pre-refunded 12/15/00 @ 102
6.500%, 12/15/14 (A) 560 574
William S. Hart Joint School Financing Authority,
Special Tax, Callable 09/01/05 @ 102 (FSA)
6.100%, 09/01/06 200 218
--------------
2,650
--------------
TRANSPORTATION -- 4.6%
San Francisco Airport Commission,
Second Series (AMT) (FGIC)
5.400%, 05/01/06 500 517
San Francisco City & County International Airports
Commission (FSA) (AMT)
5.250%, 01/01/07 450 463
5.500%, 05/01/08 500 527
San Joaquin Hills Transportation Corridor Agency,
Zero Coupon Bond (MBIA)
4.700%, 01/15/05 (B) 705 580
--------------
2,087
--------------
CALIFORNIA INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
UTILITIES -- 12.8%
Anaheim Electric, Escrowed to Maturity
4.800%, 10/01/02 $ 25 $ 25
Burbank Public Service Department (AMBAC)
6.100%, 06/01/01 200 203
California Resource Efficiency Financing Authority,
First Resource Efficiency Project (AMBAC)
5.200%, 07/01/02 500 509
California State Department of Water, Central Valley
Project, Pre-refunded 06/01/06 @ 101
5.300%, 12/01/07 (A) 750 794
California State Department of Water, Central Valley
Project, Callable 12/01/05 @ 101
5.000%, 12/01/12 500 506
Chino Basin Financing Authority, Inland Empire Utility
Agency Sewer Project (MBIA)
5.750%, 02/01/04 500 521
Contra Costa Water District, Series G (MBIA)
5.400%, 10/01/03 500 517
Escondido Civic Center Project, Escrowed to
Maturity (AMBAC) (MLO)
5.800%, 09/01/04 100 106
Inland Empire Utility Agency, Sewer Project,
Callable 11/01/09 @ 101 (MBIA)
5.200%, 11/01/11 405 423
Los Angeles Department of Water & Power,
Callable 04/15/02 @ 102
6.100%, 04/15/03 250 261
Metropolitan Water District Southern California,
Series B, Callable 07/01/06 @ 102 (MBIA)
4.875%, 07/01/10 500 510
5.000%, 07/01/14 500 501
Northern California Transmission Agency,
Cal-Ore Project (MBIA)
6.000%, 05/01/02 100 103
Redding Joint Powers Finance Authority,
Waste Water Project,
Callable 12/01/02 @ 102 (FGIC)
5.600%, 12/01/03 100 104
Richmond Waste Water Systems,
Callable 8/01/09 @ 102 (FGIC)
5.200%, 08/01/11 500 524
South County Regional Waste Water Authority (AMBAC)
5.600%, 08/01/02 100 103
Turlock Irrigation District, Series A,
Callable 07/01/02 @ 102 (MBIA)
6.000%, 01/01/04 100 105
--------------
5,815
--------------
TOTAL REVENUE BONDS 25,683
--------------
GENERAL OBLIGATIONS -- 25.6%
Alisal Unified School District, Series C,
Zero Coupon Bond (FGIC)
5.050%, 08/01/08 (B) 860 598
California State (AMBAC)
6.300%, 11/01/02 300 313
Fontana School District (MBIA)
5.550%, 07/01/04 500 523
Foothill-De Anza Community College
District Callable 08/01/10 @ 101
6.000%, 08/01/11 300 335
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 29)
<PAGE>
STATEMENTS OF NET ASSETS SEPTEMBER 30, 2000
CALIFORNIA INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Fresno Unified School District (MBIA)
6.050%, 08/01/11 $ 500 $ 561
Golden West Schools Financing Authority,
Zero Coupon Bond (MBIA)
5.000%, 02/01/12 (B) 535 303
Industry, Callable 07/01/02 @ 100.25 (FGIC)
5.800%, 07/01/04 100 103
Jefferson High School District, San Mateo
County (MBIA)
6.250%, 02/01/14 300 341
La Canada Unified School District (FGIC)
5.100%, 08/01/03 400 410
Long Beach Community Facilities District #5,
Towne Center Special Tax,
Callable 10/01/06 @ 102
6.100%, 10/01/12 165 169
Los Angeles, Series A,
Callable 09/01/04 @ 102 (MBIA)
5.800%, 09/01/07 250 269
Martinez County School District,
Callable 08/01/01 @ 101
5.750%, 08/01/05 150 153
Mt. Diablo Unified School District,
Community Facilities Project,
Callable 08/01/02 @ 102 (AMBAC)
5.800%, 08/01/03 100 104
Newhall School District, Series A,
Callable 05/01/10 @ 101 (FSA)
5.500%, 05/01/11 540 579
Oxnard School District (MBIA)
5.000%, 08/01/05 600 619
Pomona School District, Series A (MBIA)
5.450%, 02/01/06 250 263
5.500%, 08/01/06 250 265
Pomona School District, Series A,
Callable 08/01/01 @ 103 (MBIA)
6.150%, 08/01/15 500 557
Puerto Rico Commonwealth (MBIA)
6.250%, 07/01/08 500 558
Puerto Rico Commonwealth, Series B (FSA)
6.500%, 07/01/15 1,000 1,147
Rio Linda School District,
Callable 08/01/08 @ 100 (FSA)
5.000%, 08/01/09 500 518
Roseville High School District,
Callable 02/01/01 @ 102
5.750%, 08/01/02 100 102
Rowland Unified School District, Series A,
Callable 09/01/10 @ 101 (FSA)
5.250%, 09/01/25 250 243
San Francisco Fire Department Facility
Project, Series C (FGIC)
7.000%, 06/15/03 300 321
San Francisco Library Facilities Project, Series D,
Callable 11/06/00 @ 102
5.700%, 06/15/01 250 253
South Pasadena Unified School District,
Zero Coupon Bond (FGIC)
4.900%, 11/01/12 (B) 740 404
CALIFORNIA INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Sulphur Springs Unified School District, Series B
5.400%, 03/01/02 $ 500 $ 508
Walnut Valley School District, Series A (MBIA)
6.800%, 02/01/07 250 283
6.850%, 08/01/07 250 286
Walnut Valley School District, Series A,
Callable 8/01/10 @ 102 (FSA)
5.000%, 08/01/12 255 261
West Covina Redevelopment Agency, Community
Facilities District, Special Tax Revenue
5.125%, 09/01/05 300 307
--------------
11,656
--------------
CERTIFICATES OF PARTICIPATION -- 16.7%
Abag Financial Authority, O'Connor Woods (ACA)
5.250%, 11/01/05 500 511
Abag Financial Authority, Odd Fellows Home
of California (CHFLI)
4.950%, 08/15/07 500 508
Bakersfield Convention Center Project (MBIA) (MLO)
5.500%, 04/01/10 250 265
California Statewide Community Development
Authority, Community Hospital of Monterey
Peninsula, Callable 08/18/08 @ 101 (MBIA)
5.250%, 08/15/09 500 526
California Statewide Community Development
Authority, Health Facilities, Series A,
Callable 08/01/03 @ 102 (CMI)
5.200%, 08/01/04 200 205
Grossmont Unified High School District,
Callable 09/01/08 @102 (MLO) (FSA)
5.400%, 09/01/13 300 313
Kern County Board of Education,
Callable 05/01/08 @ 102 (MBIA) (MLO)
5.200%, 05/01/12 905 936
Los Angeles Community College,
Energy Retrofit Project (AMBAC)
5.000%, 08/15/09 300 312
Los Angeles County Schools Regionalized Business
Services Financing Project, Series A
5.000%, 09/01/08 200 204
Los Angeles, Sonnenblick Del Rio,
West Los Angeles (AMBAC)
5.375%, 11/01/10 500 529
Oceanside Water System (AMBAC)
5.100%, 08/01/02 500 508
Orange County Juvenile Justice Center Facility
(AMBAC) (MLO)
5.750%, 06/01/01 100 101
Paradise Unified School District, Measure M Project,
Series A, Callable 09/01/05 @ 102 (AMBAC) (MLO)
5.250%, 09/01/07 300 316
Rancho Mirage Joint Powers Finance Authority,
Eisenhower Medical Center, Series A,
Callable 07/01/07 @ 102 (MBIA)
5.125%, 07/01/08 500 521
Riverside County Public Financing Authority,
Air Force Village West
5.125%, 05/15/05 525 526
The accompanying notes are an integral part of the financial statements.
(30 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
CALIFORNIA INTERMEDIATE TAX FREE FUND (CONCLUDED)
DESCRIPTION PAR (000)/SHARES VALUE (000)
--------------------------------------------------------------------------------
San Diego County Water Authority,
Callable 05/01/08 @ 101
5.000%, 05/01/13 $ 505 $ 510
San Mateo County Board of Education,
Callable 05/01/08 @ 101 (MLO)
4.600%, 05/01/12 505 486
Tulare County Financing Project,
Series A (MBIA) (MLO)
5.600%, 11/15/02 100 103
West Covina Civic Center Project (FSA) (MLO)
5.250%, 09/01/07 250 263
--------------
7,643
--------------
TOTAL MUNICIPAL BONDS
(Cost $43,717) 44,982
--------------
MONEY MARKET FUND -- 0.1%
Federated California Municipal Cash Trust 47,596 48
--------------
TOTAL MONEY MARKET FUND
(Cost $48) 48
--------------
TOTAL INVESTMENTS -- 98.7%
(Cost $43,765) 45,030
--------------
OTHER ASSETS AND LIABILITIES -- 1.3% 576
--------------
NET ASSETS:
Portfolio Capital--Class A ($.0001 par value--
2 billion authorized) based on
233,869 outstanding shares 2,311
Portfolio Capital--Class Y ($.0001 par value--
2 billion authorized) based on
4,309,887 outstanding shares 42,196
Undistributed net investment income 19
Accumulated net realized loss on investments (185)
Net unrealized appreciation of investments 1,265
--------------
NET ASSETS -- 100.0% $ 45,606
--------------
Net asset value and redemption price per share -- Class A $ 10.02
Maximum sales charge of 2.50% (C) 0.26
--------------
Offering price per share -- Class A $ 10.28
--------------
Net asset value, offering price, and redemption
price per share -- Class Y $ 10.04
--------------
(A) Pre-refunded issues are typically backed by U.S. Government obligations or
municipal bonds. These bonds mature at the call date and price indicated.
(B) The rate shown is the effective yield at the time of purchase.
(C) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 2.50%.
ACA--American Capital Access
AMBAC--American Municipal Bond Assurance Corporation
AMT--Alternative Minimum Tax. As of September 30, 2000 the aggregate market
value of securities subject to the AMT was $1,810,000 which represents 4.0%
of net assets.
CGLI--Connecticut General Life Insurance
CHFLI--California Health Facility Construction Loan Insurance
CMI--California Mortgage Insurance Program
FGIC--Financial Guaranty Insurance Corporation
FNMA--Federal National Mortgage Association
FSA--Financial Security Assurance
GNMA--Government National Mortgage Association
MBIA--Municipal Bond Insurance Association
MLO--Municipal Lease Obligation
CALIFORNIA TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
MUNICIPAL BONDS -- 95.6%
REVENUE BONDS -- 53.1%
AUTHORITY -- 1.4%
South Bayside Waste Management Authority,
Callable 03/01/09 @ 102 (AMBAC)
5.750%, 03/01/20 $ 150 $ 155
--------------
BUILDING -- 3.3%
California State Public Works,
Department of Corrections
5.250%, 11/01/07 100 105
Sacramento City Financing Authority,
Callable 06/01/10 @ 101
5.400%, 06/01/18 250 252
--------------
357
--------------
EDUCATION -- 18.1%
Abag Financial Authority, Schools of the
Sacred Heart, Series A
5.900%, 06/01/10 200 209
California State Higher Educational Facilities
Authority, Fresno Pacific University, Series A
5.550%, 03/01/06 250 259
California State Higher Educational Facilities
Authority, Fresno Pacific University, Series A,
Callable 03/01/10 @ 101
6.750%, 03/01/19 380 403
California State Higher Educational Facilities
Authority, University of La Verne & Western
University of Health Sciences, Series B,
Callable 06/01/10 @ 101
6.625%, 06/01/20 215 226
California State Higher Educational Facilities
Authority, University of Redlands, Series A,
Callable 06/01/10 @ 101
5.950%, 06/01/15 310 328
6.150%, 06/01/20 500 529
--------------
1,954
--------------
HEALTHCARE -- 7.1%
California Statewide Communities Development
Authority, Los Angeles Orthopedic Hospital,
Callable 06/01/07 @ 101 (AMBAC)
5.000%, 06/01/12 350 353
Puerto Rico Medical & Environmental Central
Facilities, Ascension Health, Series A
5.500%, 11/15/08 400 419
--------------
772
--------------
HOUSING -- 2.4%
California State Housing Finance Agency, Single
Family Mortgage, Series B (AMT) (FNMA) (GNMA)
5.650%, 06/01/10 255 260
--------------
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 31)
<PAGE>
STATEMENTS OF NET ASSETS SEPTEMBER 30, 2000
CALIFORNIA TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
SCHOOL DISTRICT -- 1.5%
Golden West Schools Financing Authority, Series A (MBIA)
5.750%, 02/01/14 $ 150 $ 163
--------------
TAX REVENUE -- 9.3%
Grass Valley Community Redevelopment Agency,
Tax Allocation, Callable 12/01/08 @ 102
6.400%, 12/01/34 400 408
Los Angeles County Metropolitan Transportation
Authority, Sales Tax, Series B,
Callable 07/01/03 @ 102 (AMBAC)
5.250%, 07/01/23 200 194
Los Angeles Landscaping & Lighting District #96-1,
Callable 03/01/10 @ 101
5.625%, 03/01/19 200 206
San Francisco Bay Area Transportation Authority,
Callable 07/01/09 @ 101 (FGIC)
5.500%, 07/01/26 200 200
--------------
1,008
--------------
TRANSPORTATION -- 8.5%
Long Beach Harbor, Callable 05/15/05 @ 102
(AMT) (MBIA)
5.375%, 05/15/20 250 247
Los Angeles Harbor, Series B,
Callable 11/01/06 @ 101 (AMT)
5.250%, 11/01/08 300 312
Puerto Rico Commonwealth Highway &
Transportation Authority, Series X (MBIA)
5.500%, 07/01/15 100 104
San Francisco Airport Commission, SFO Fuel
Company, Callable 01/01/08 @ 102 (FSA)
5.625%, 01/01/12 250 260
--------------
923
--------------
UTILITIES -- 1.5%
Los Angeles Water & Power Development Authority,
Callable 02/15/05 @ 101
6.100%, 02/15/17 150 158
--------------
TOTAL REVENUE BONDS 5,750
--------------
CERTIFICATES OF PARTICIPATION - 22.4%
Abag Financial Authority, Lincoln Glen Manor Senior
Citizens, Callable 02/15/08 @ 101 (CMI)
6.100%, 02/15/25 250 262
Bakersfield Convention Center Project,
Callable 04/01/07 @ 101 (MBIA)
5.875%, 04/01/22 250 258
Escondido, Series A, Callable 09/01/10 @ 101 (FGIC)
5.625%, 09/01/20 300 307
Lathrop, Series A, Callable 06/01/10 @ 101 (MBIA)
5.875%, 06/01/30 350 363
CALIFORNIA TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000)/SHARES VALUE (000)
--------------------------------------------------------------------------------
Los Angeles, Sonnenblick del Rio Senior Lien,
Callable 11/01/10 @ 101 (AMBAC)
6.000%, 11/01/19 $ 330 $ 353
Orange County, Series A,
Callable 07/01/06 @ 102 (MBIA)
5.875%, 07/01/19 150 156
Pacifica Public Safety Building Project,
Callable 11/01/09 @ 102 (MBIA)
5.350%, 11/01/13 150 156
5.875%, 11/01/24 300 312
Ridgecrest Civic Center Project,
Callable 03/01/09 @ 101
6.250%, 03/01/21 250 255
--------------
2,422
--------------
GENERAL OBLIGATIONS -- 20.1%
Acalanes Unified School District, Zero Coupon Bond,
Callable 08/01/10 @ 70.9186 (FGIC)
6.150%, 08/01/16 (A) 700 287
Glendora Unified School District, Series A,
Callable 09/01/10 @ 101 (FSA)
5.350%, 09/01/20 340 341
Hanford Unified School District, Series B,
Zero Coupon (MBIA)
5.850%, 08/01/15 (A) 260 119
Jefferson High School District, San Mateo County,
Series A (MBIA)
6.250%, 08/01/20 460 511
Long Beach Community Facilities District #5,
Towne Center Special Tax,
Callable 10/01/06 @ 102
6.100%, 10/01/12 250 256
Rowland Unified School District, Series A,
Callable 09/01/10 @ 101 (FSA)
5.250%, 09/01/25 250 243
Sacramento Unified School District, Series A,
Callable 07/01/09 @ 102
5.750%, 07/01/17 400 421
--------------
2,178
--------------
TOTAL MUNICIPAL BONDS
(Cost $9,861) 10,350
--------------
MONEY MARKET FUNDS -- 2.9%
Federated California Municipal Cash Trust 272,459 272
Provident California Tax Free Money Market 39,554 40
--------------
TOTAL MONEY MARKET FUNDS
(Cost $312) 312
--------------
TOTAL INVESTMENTS -- 98.5%
(Cost $10,173) 10,662
--------------
OTHER ASSETS AND LIABILITIES, NET -- 1.5% 167
--------------
The accompanying notes are an integral part of the financial statements.
(32 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
CALIFORNIA TAX FREE FUND (CONCLUDED)
DESCRIPTION VALUE (000)
--------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital--Class A ($.0001 par value--
2 billion authorized) based on 565,771
outstanding shares $ 5,790
Portfolio Capital--Class C ($.0001 par value--
2 billion authorized) based on 3,155
outstanding shares 34
Portfolio Capital--Class Y ($.0001 par value--
2 billion authorized) based on 447,171
outstanding shares 4,514
Undistributed net investment income 3
Accumulated net realized loss on investments (1)
Net unrealized appreciation of investments 489
--------------
TOTAL NET ASSETS -- 100.0% $ 10,829
--------------
Net asset value and redemption price per share -- Class A $ 10.66
Maximum sales charge of 1.00% (B) 0.27
--------------
Offering price per share -- Class A $ 10.93
--------------
Net asset value and redemption price per share -- Class C (C) $ 10.66
Maximum sales charge of 1.00% (D) 0.11
--------------
Offering price per share -- Class C $ 10.77
--------------
Net asset value, offering price, and redemption
price per share -- Class Y $ 10.66
--------------
(A) The rate shown is the effective yield at the time of purchase.
(B) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 2.50%.
(C) Class C has a contingent deferred sales charge. For a description of a
possible redemption charge, see the notes to the financial statements.
(D) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%.
AMBAC--American Municipal Bond Assurance Corporation
AMT--Alternative Minimum Tax. As of September 30, 2000, the aggregate market
value of securities subject to the AMT was $819,000, which represents 7.6%
of net assets.
CMI--California Mortgage Insurance Program
FGIC--Financial Guaranty Insurance Corporation
FNMA--Federal National Mortgage Association
FSA--Financial Security Assurance
GNMA--Government National Mortgage Association
MBIA--Municipal Bond Insurance Association
COLORADO INTERMEDIATE TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
MUNICIPAL BONDS -- 97.9%
REVENUE BONDS -- 49.9%
AUTHORITY -- 0.2%
Colorado State Water Resource & Power
Development Authority, Small Water
Resources, Series A (FGIC)
5.700%, 11/01/15 $ 100 $ 103
--------------
BUILDING -- 2.5%
Jefferson County, Metropolitan Y.M.C.A. Project,
Callable 08/01/04 @ 100
7.500%, 08/01/08 1,000 1,022
Jefferson County, Rocky Mountain Butterfly
Project
4.150%, 06/01/10 (A) (B) 415 415
--------------
1,437
--------------
EDUCATION -- 4.8%
Aurora Community College Project (MLO) (CLE)
5.750%, 10/15/04 500 515
Colorado Educational & Cultural Facilities Authority,
Charter School, Callable 11/01/09 @ 100
6.850%, 11/01/16 440 446
Colorado Springs, The Colorado College Project
4.750%, 06/01/07 500 501
Colorado State Board of Agriculture, Fort Lewis
College Project (FGIC)
6.000%, 10/01/02 250 257
University of Northern Colorado, Auxiliary Facility
System, Callable 06/01/07 @ 100 (MBIA)
5.600%, 06/01/24 1,000 993
--------------
2,712
--------------
HEALTHCARE -- 10.5%
Colorado State Health Facilities Authority,
Boulder Hospital (MBIA)
4.875%, 10/01/08 500 497
5.000%, 10/01/09 500 499
Colorado State Health Facilities Authority,
National Jewish Medical & Research Center,
Callable 01/01/08 @ 101
5.375%, 01/01/16 1,000 864
Colorado State Health Facilities Authority,
North Colorado Medical Center (FSA)
5.000%, 05/15/09 1,000 1,010
Colorado State Health Facilities Authority,
Poudre Valley, Series A,
Callable 12/01/09 @ 100 (FSA)
5.750%, 12/01/10 1,000 1,066
Colorado State Health Facilities Authority,
Steamboat Springs Health Project
4.500%, 09/15/03 400 387
4.600%, 09/15/04 405 386
La Junta Hospital, Arkansas Valley Medical
Center Project
5.200%, 04/01/06 300 286
5.300%, 04/01/07 320 303
5.400%, 04/01/08 335 316
5.500%, 04/01/09 355 332
--------------
5,946
--------------
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 33)
<PAGE>
STATEMENTS OF NET ASSETS SEPTEMBER 30, 2000
COLORADO INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
HOUSING -- 1.3%
Colorado State Housing Finance Authority,
Multifamily Housing, Series A (FHA)
5.125%, 10/01/03 $ 355 $ 357
Colorado State Housing Finance Authority,
Single Family Mortgages, Series B-1 (AMT)
5.875%, 06/01/11 365 367
--------------
724
--------------
INDUSTRIAL DEVELOPMENT -- 0.5%
Jefferson County Industrial Development Authority,
May Department Stores
6.625%, 09/01/01 250 254
--------------
POLLUTION CONTROL -- 2.7%
Moffat County, Pollution Control (AMBAC)
5.500%, 11/01/05 1,000 1,037
Moffat County, Pollution Control (AMBAC)
5.500%, 07/01/10 (B) 500 500
--------------
1,537
--------------
RECREATIONAL AUTHORITY -- 1.9%
Denver, Helen G. Bonfils Foundation, Series B,
Callable 12/01/07 @ 100
5.125%, 12/01/17 900 857
Hyland Hills Metropolitan Park & Recreational District,
Series A, Callable 12/15/07 @ 101
6.100%, 12/15/09 210 216
--------------
1,073
--------------
TAX REVENUE -- 6.7%
Boulder County Sales & Use Tax (FGIC)
5.750%, 12/15/05 870 914
Boulder County Sales & Use Tax, Pre-refunded,
Escrowed To Maturity (FGIC)
5.750%, 12/15/05 (C) 130 137
Douglas County Sales & Use Tax, Open Space (FSA)
6.000%, 10/15/09 300 325
Larimer County Sales & Use Tax (AMBAC)
5.000%, 12/15/09 360 365
5.000%, 12/15/10 460 464
Longmont Sales & Use Tax, Callable 11/15/10 @ 100
5.500%, 11/15/15 500 505
Westminster Sales & Use Tax, Series A,
Callable 12/01/07 @ 101 (FGIC)
5.250%, 12/01/11 500 508
Westminster Sales & Use Tax, Series B (FGIC)
6.250%, 12/01/05 500 536
--------------
3,754
--------------
TRANSPORTATION -- 8.7%
Colorado Department of Transportation (AMBAC)
6.000%, 06/15/10 1,000 1,084
Denver City & County Airport, Series A (AMBAC) (AMT)
5.000%, 11/15/10 2,000 1,984
Denver City & County Airport, Series B (AMT) (MBIA)
5.500%, 11/15/25 (B) 500 500
COLORADO INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
The E-470 Public Highway Authority,
Series B, Zero Coupon Bond (MBIA)
6.400%, 09/01/19 (D) $ 960 $ 322
6.140%, 09/01/22 (D) 3,620 1,001
--------------
4,891
--------------
UTILITIES -- 10.1%
Arapahoe County Water & Wastewater Authority
5.550%, 12/01/06 140 141
5.650%, 12/01/07 150 152
5.750%, 12/01/08 160 162
Arapahoe County Water & Wastewater Authority,
Callable 12/01/09 @ 100
6.000%, 12/01/11 185 188
Boulder Water & Sewer
5.750%, 12/01/10 1,545 1,647
Broomfield Water Activity Enterprise,
Callable 12/01/10 @ 101 (MBIA)
5.500%, 12/01/17 500 501
Colorado State Water Resource & Power
Development Authority,
Callable 09/01/02 @ 101 (FSA)
5.900%, 09/01/03 250 259
Platte River Power Authority, Series DD,
Callable 06/01/07 @ 102 (MBIA)
5.375%, 06/01/17 875 864
Ute Water Conservancy District (MBIA)
6.000%, 06/15/09 680 738
Westminster Water & Wastewater Utility Enterprise,
Callable 10/01/04 @ 100 (AMBAC)
5.800%, 12/01/05 1,000 1,042
--------------
5,694
--------------
TOTAL REVENUE BONDS 28,125
--------------
GENERAL OBLIGATIONS -- 37.8%
Adams County School District #12,
Callable 12/15/03 @ 100 (FGIC)
6.200%, 12/15/08 455 475
Arapahoe County School District #5, Cherry Creek,
Callable 12/15/09 @ 100 (STAID)
5.500%, 12/15/11 1,000 1,036
Boulder Valley School District #RE-2,
Pre-refunded 12/01/04 @ 101 (STAID)
5.950%, 12/15/07 (C) 1,000 1,059
Brighton, Callable 12/01/01 @ 101 (MBIA)
6.350%, 12/01/05 95 98
Broomfield Water (FSA)
4.050%, 11/01/03 1,000 982
Douglas & Elbert Counties, School District #1,
Pre-refunded 12/15/04 @ 101 (MBIA) (STAID)
6.400%, 12/15/11 (C) 1,000 1,078
Eagle, Garfield & Routt Counties, School District #50-J,
Callable 12/01/04 @ 102 (FGIC) (STAID)
6.125%, 12/01/09 1,290 1,387
El Paso County School District #2, Harrison (STAID)
7.050%, 12/01/04 1,000 1,090
The accompanying notes are an integral part of the financial statements.
(34 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
COLORADO INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
El Paso County School District #3, Widefield,
Zero Coupon Bond (MBIA)
4.700%, 12/15/09 (D) $ 500 $ 310
El Paso County School District #20, Series A (STAID)
6.100%, 12/15/05 500 533
Elbert County School District #C-1, Elizabeth (STAID)
5.150%, 12/01/08 500 511
Fort Collins, Callable 12/01/02 @ 101
6.400%, 12/01/09 575 601
Garfield, Pitkin, & Eagle Counties,
School District #1 (MBIA)
6.000%, 12/15/04 1,000 1,053
Jefferson County School District #R-1,
Pre-refunded 12/15/02 @ 101
(AMBAC) (STAID)
5.900%, 12/15/04 (C) 1,045 1,085
Jefferson County School District #R-1 (MBIA) (STAID)
6.250%, 12/15/09 1,000 1,102
La Plata County School District #9-R, Durango,
Callable 11/01/02 @ 101 (FGIC) (STAID)
6.200%, 11/01/05 165 172
La Plata County School District #9-R, Durango,
Pre-refunded @ 101 (FGIC)
6.200%, 11/01/02 (C) 835 871
Larimer County School District #R-1, Poudre (STAID)
5.400%, 12/15/04 750 772
Larimer, Weld & Boulder Counties,
School District #R-2, Thompson,
Callable 12/15/04 @ 100 (STAID)
5.900%, 12/15/06 1,000 1,044
South Suburban Park & Recreation District,
Zero Coupon Bond (MBIA)
6.000%, 12/15/01 (D) 1,000 945
Stonegate Village Metropolitan District,
Pre-refunded 12/01/02 @ 100 (FGIC)
6.300%, 12/01/04 (C) 500 519
Summit County School District #R-1,
Pre-refunded 12/01/04 @ 100
6.450%, 12/01/08 (C) 1,250 1,338
Thornton (FGIC)
5.600%, 12/01/02 1,000 1,023
Thornton, Callable 12/01/02 @ 101 (FGIC)
5.650%, 12/01/03 1,000 1,032
Westglenn Metropolitan District,
Callable 12/01/09 @ 100
6.000%, 12/01/14 1,220 1,220
--------------
21,336
--------------
CERTIFICATES OF PARTICIPATION -- 10.2%
Arapahoe County Building Finance (AMBAC)
5.000%, 02/15/09 1,300 1,312
Aurora, Callable 12/01/04 @ 101 (MLO)
6.000%, 12/01/06 1,000 1,015
Colorado Springs Public Facilities Authority,
Old City Hall Project (FSA)
4.650%, 12/01/05 170 170
4.700%, 12/01/06 135 135
5.000%, 12/01/10 200 201
Denver City & County, Series B,
Callable 12/01/10 @ 101 (AMBAC)
5.000%, 12/01/11 500 499
Englewood Civic Center Project,
Callable 12/01/08 @ 100 (MLO) MBIA)
4.900%, 06/01/13 585 559
COLORADO INTERMEDIATE TAX FREE FUND (CONCLUDED)
DESCRIPTION PAR (000)/SHARES VALUE (000)
--------------------------------------------------------------------------------
Garfield County Building (MLO) (AMBAC)
5.750%, 12/01/09 $ 400 $ 425
Garfield County Building,
Callable 12/01/09 @ 101 (MLO) (AMBAC)
5.300%, 12/01/11 400 408
Westminster Recreation Facilities,
Callable 09/01/09 @ 101 (MLO) (MBIA)
5.200%, 09/01/10 1,000 1,018
--------------
TOTAL CERTIFICATES OF PARTICIPATION 5,742
--------------
TOTAL MUNICIPAL BONDS
(Cost $53,924) 55,203
--------------
RELATED PARTY MONEY MARKET FUND -- 0.7%
First American Tax Free Obligations Fund (E) 380,082 380
--------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $380) 380
--------------
TOTAL INVESTMENTS -- 98.6%
(Cost $54,304) 55,583
--------------
OTHER ASSETS AND LIABILITIES, NET -- 1.4% 787
--------------
NET ASSETS:
Portfolio Capital--Class A ($.0001 par value--
2 billion authorized) based on 338,890
outstanding shares 3,531
Portfolio Capital--Class Y ($.0001 par value--
2 billion authorized) based on 5,155,617
outstanding shares 52,274
Undistributed net investment income 4
Accumulated net realized loss on investments (718)
Net unrealized appreciation of investments 1,279
--------------
TOTAL NET ASSETS -- 100.0% $ 56,370
--------------
Net asset value and redemption price per share -- Class A $ 10.28
Maximum sales charge of 2.50% (F) 0.26
--------------
Offering price per share -- Class A $ 10.54
--------------
Net asset value, offering price, and redemption
price per share -- Class Y $ 10.26
--------------
(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. This security has been determined to be liquid under guidelines
established by the Board of Directors. As of September 30, 2000, the market
value of this investment was $415,000, or 0.7% of net assets.
(B) Variable Rate Security -- the rate shown is the effective rate in effect as
of September 30, 2000.
(C) Pre-refunded issues are typically backed by U.S. Government obligations or
municipal bonds. These bonds mature at the call date and price indicated.
(D) The rate shown is the effective yield at the time of purchase.
(E) This money market fund is advised by U.S. Bank National Association who also
serves as Advisor for this fund. See also the notes to the financial
statements.
(F) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 2.50%.
AMBAC--American Municipal Bond Assurance Corporation
AMT--Alternative Minimum Tax. As of September 30, 2000, the aggregate market
value of securities subject to the AMT was $2,851,000, which represents
5.1% of net assets.
CLE--Connie Lee
FGIC--Financial Guaranty Insurance Corporation
FHA--Federal Housing Authority
FSA--Financial Security Assurance
MBIA--Municipal Bond Insurance Association
MLO--Municipal Lease Obligation
STAID--State Aid Withholding
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 35)
<PAGE>
STATEMENTS OF NET ASSETS SEPTEMBER 30, 2000
COLORADO TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
MUNICIPAL BONDS -- 93.3%
REVENUE BONDS -- 52.2%
EDUCATION -- 6.2%
Colorado Educational & Cultural Facilities Authority,
Ave Marie School Project,
Callable 12/01/10 @ 100
6.000%, 12/01/16 $ 200 $ 206
Colorado Educational & Cultural Facilities Authority,
Charter School, Callable 11/01/09 @ 100
6.850%, 11/01/16 100 101
Colorado State Board of Agriculture, Auxiliary Facility
System, Callable 3/01/07 @ 101 (AMBAC)
5.125%, 03/01/17 200 191
University of Northern Colorado, Auxiliary Facility
System, Callable 06/01/07 @ 100 (MBIA)
5.600%, 06/01/24 165 164
--------------
662
--------------
HEALTHCARE -- 5.1%
Colorado State Health Facilities Authority, National
Benevolent Association, Series C
6.000%, 03/01/06 100 100
Colorado State Health Facilities Authority, National
Benevolent Association, Series C,
Callable 03/01/10 @ 101
7.000%, 03/01/19 100 100
Colorado State Health Facilities Authority, Vail Valley
Medical Center, Series A,
Callable 01/15/05 @ 101
6.500%, 01/15/13 250 259
La Junta, Ark Valley Medical Center,
Callable 04/01/09 @ 101
6.100%, 04/01/24 100 89
--------------
548
--------------
HOUSING -- 3.2%
Colorado State Housing Finance Authority,
Single Family Housing, Series A-2,
Callable 10/01/09 @ 105 (AMT)
7.450%, 10/01/16 100 113
Colorado State Housing Finance Authority,
Single Family Housing, Series B-2,
Callable 04/01/10 @ 105 (AMT)
7.100%, 04/01/17 200 225
--------------
338
--------------
RECREATIONAL AUTHORITY -- 2.8%
Denver, Helen G. Bonfils Foundation, Series B,
Callable 12/01/07 @ 100
5.125%, 12/01/17 100 95
Hyland Hills Metropolitan Park & Recreational District,
Series A, Callable 12/15/07 @ 101
6.100%, 12/15/09 200 206
--------------
301
--------------
COLORADO TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
SCHOOL DISTRICT -- 2.1%
El Paso County, Series D, Zero Coupon Bond,
(AMT) (FSA)
6.000%, 07/01/11 (A) $ 400 $ 227
--------------
TAX REVENUE -- 9.6%
Boulder County Sales & Use Tax, Series A,
Callable 12/15/09 @ 101 (FGIC)
5.800%, 12/15/16 495 511
6.000%, 12/15/19 200 209
Douglas County Sales & Use Tax,
Callable 10/15/10 @ 100 (FSA)
5.625%, 10/15/20 200 200
Larimer County Sales & Use Tax,
Callable 12/15/10 @ 100 (AMBAC)
5.625%, 12/15/18 100 101
--------------
1,021
--------------
TRANSPORTATION -- 6.2%
Denver City & County Airport, Series E,
Callable 11/15/07 @ 101 (MBIA)
5.250%, 11/15/23 500 469
The E-470 Public State Authority, Series A,
Callable 09/01/07 @ 101 (MBIA)
5.000%, 09/01/16 200 189
--------------
658
--------------
UTILITIES -- 17.0%
Boulder Water & Sewer,
Callable 12/01/10 @ 100
5.700%, 12/01/19 300 303
Broomfield Water Activity Enterprise,
Callable 12/01/10 @ 101 (MBIA)
5.500%, 12/01/19 400 398
Fort Collins Wastewater Utility Enterprise,
Callable 12/01/10 @ 100 (FSA)
5.500%, 12/01/20 300 296
Platte River Power Authority, Series DD,
Callable 06/01/07 @ 102 (MBIA)
5.375%, 06/01/17 500 494
Pueblo County Board of Waterworks,
Callable 11/01/10 @ 100 (FSA)
5.875%, 11/01/18 305 315
--------------
1,806
--------------
TOTAL REVENUE BONDS 5,561
--------------
GENERAL OBLIGATIONS -- 27.6%
Arapahoe County School District #5,
Cherry Creek, (STAID)
5.500%, 12/15/19 550 547
Boulder Open Space Acquisition,
Callable 08/15/10 @ 100
5.450%, 08/15/16 350 351
Clear Creek School District #1,
Callable 12/01/10 @ 100 (STAID)
5.750%, 12/01/17 200 205
The accompanying notes are an integral part of the financial statements.
(36 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
COLORADO TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000)/SHARES VALUE (000)
--------------------------------------------------------------------------------
Denver Metropolitan District, Series B,
Callable 12/01/05 @ 102
5.700%, 12/01/17 $ 100 $ 93
El Paso County School District #38,
Callable 12/01/10 @ 100 (STAID)
6.375%, 12/01/18 200 216
6.000%, 12/01/24 250 259
El Paso County School District #49, Falcon,
Series A, Callable 12/01/09 @ 105 (STAID)
6.000%, 12/01/18 200 214
Highlands Ranch Metropolitan District #2,
Callable 06/15/06 @ 101 (FSA)
5.000%, 06/15/16 200 189
Metex Metropolitan District, Series A,
Callable 12/01/07 @ 101 (MBIA)
5.800%, 12/01/16 350 360
Mountain Village Metropolitan District,
Callable 12/01/07 @ 101 (MBIA)
5.200%, 12/01/17 200 193
Pueblo County School District #70,
Callable 12/01/09 @ 100 (FGIC)
6.000%, 12/01/18 100 104
Puerto Rico Commonwealth, Public Improvements,
Callable 07/01/05 @ 101
6.000%, 07/01/29 200 205
--------------
2,936
--------------
CERTIFICATES OF PARTICIPATION -- 13.5%
Arapahoe County Building Finance,
Callable 02/15/10 @ 100 (AMBAC)
5.250%, 02/15/19 100 96
Colorado Springs Old City Hall Project,
Callable 12/01/10 @ 100 (FSA)
5.500%, 12/01/17 200 199
5.500%, 12/01/20 200 196
Denver City & County, Series A,
Callable 05/01/10 @ 100 (MBIA)
5.500%, 05/01/17 400 400
Fremont County Lease Revenue,
Callable 12/15/07 @ 101 (MBIA) (MLO)
5.300%, 12/15/17 250 245
Garfield County, Callable 12/01/09 @ 101 (AMBAC)
5.750%, 12/01/19 300 303
--------------
1,439
--------------
TOTAL MUNICIPAL BONDS
(Cost $9,615) 9,936
--------------
RELATED PARTY MONEY MARKET FUND -- 5.1%
First American Tax Free Obligations Fund (B) 550,317 550
--------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $550) 550
--------------
TOTAL INVESTMENTS -- 98.4%
(Cost $10,165) 10,486
--------------
OTHER ASSETS AND LIABILITIES, NET -- 1.6% 168
--------------
COLORADO TAX FREE FUND (CONCLUDED)
DESCRIPTION VALUE (000)
--------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital--Class A ($.0001 par value--
2 billion authorized) based on 774,579
outstanding shares $ 7,817
Portfolio Capital--Class C ($.0001 par value--
2 billion authorized) based on 14,954
outstanding shares 153
Portfolio Capital--Class Y ($.0001 par value--
2 billion authorized) based on 232,931
outstanding shares 2,352
Undistributed net investment income 7
Accumulated net realized gain on investments 4
Net unrealized appreciation of investments 321
--------------
TOTAL NET ASSETS -- 100.0% $10,654
--------------
Net asset value and redemption
price per share -- Class A $ 10.42
Maximum sales charge of 2.50% (C) 0.27
--------------
Offering price per share -- Class A $ 10.69
--------------
Net asset value and redemption
price per share -- Class C (D) $ 10.41
Maximum sales charge of 1.00% (E) 0.11
--------------
Offering price per share -- Class C $ 10.52
--------------
Net asset value, offering price, and redemption
price per share -- Class Y $10.43
--------------
(A) The rate shown is the effective yield at time of purchase.
(B) This money market fund is advised by U.S. Bank National Association who also
serves as Advisor for this Fund. See also the notes to the financial
statements.
(C) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 2.50%.
(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) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%.
AMBAC--American Municipal Bond Assurance Corporation
AMT--Alternative Minimum Tax. As of September 30, 2000, the aggregate market
value of securities subject to the AMT was $565,000, which represents 5.3%
of net assets.
FGIC--Financial Guaranty Insurance Corporation
FSA--Financial Security Assurance
MBIA--Municipal Bond Insurance Association
MLO--Municipal Lease Obligation
STAID--State Aid Withholding
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 37)
<PAGE>
STATEMENTS OF NET ASSETS SEPTEMBER 30, 2000
INTERMEDIATE TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
MUNICIPAL BONDS -- 98.3%
ALABAMA -- 1.7%
Alabama State Docks Department (RB) (MBIA)
5.250%, 10/01/10 $ 3,000 $ 3,073
Jefferson County Sewer, Series A (RB) (FGIC)
5.375%, 02/01/06 1,500 1,543
Montgomery, Baptist Health Special Care
(RB) (MBIA)
4.000%, 11/15/03 1,640 1,595
4.100%, 11/15/05 500 479
--------------
6,690
--------------
ALASKA -- 2.7%
Alaska State Housing Finance Corporation (RB) (MBIA)
4.950%, 12/01/02 660 663
5.900%, 12/01/04 700 732
5.350%, 06/01/06 660 673
Alaska State Housing Finance Corporation,
Callable 12/01/05 @ 102 (RB) (MBIA)
5.400%, 12/01/08 2,000 2,045
Alaska State Housing Finance Corporation,
Callable 06/01/04 @ 102 (RB)
5.400%, 12/01/23 3,000 2,882
Alaska State Industrial Development & Export
Authority, Callable 04/01/03 @ 102 (RB)
5.950%, 04/01/06 800 824
Alaska State International Airports,
Series A (RB) (AMT) (AMBAC)
4.250%, 10/01/06 2,000 1,904
Anchorage, Electric Utility (RB) (MBIA)
5.500%, 12/01/02 700 714
--------------
10,437
--------------
ARIZONA -- 1.2%
Maricopa County School District #69,
Paradise Valley (GO) (MBIA)
5.300%, 07/01/11 1,000 1,027
Phoenix, Series A (GO)
5.550%, 07/01/09 1,000 1,058
Pima County (GO)
6.000%, 07/01/02 800 820
Tempe Unified School District #213,
Series C (GO) (MBIA)
4.000%, 07/01/12 2,060 1,828
--------------
4,733
--------------
CALIFORNIA -- 2.4%
Azusa Redevelopment Agency,
Single Family Mortgages, Series A,
Escrowed to Maturity (RB) (FNMA)
6.400%, 10/01/02 1,000 1,043
Bakersfield Convention Center Expansion Project,
Callable 04/01/07 @ 101 (COP) (MLO) (MBIA)
5.400%, 04/01/09 1,000 1,060
Mountain View Los Altos School District, Series B,
Callable 05/01/07 @ 102 (GO)
6.500%, 05/01/17 2,000 2,188
INTERMEDIATE TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Orange County Transportation Authority,
Callable 02/15/02 @ 102 (RB)
5.700%, 02/15/03 $ 200 $ 207
5.750%, 02/15/04 1,000 1,039
San Jose Airport, Callable 03/01/03 @ 102
(RB) (MBIA)
6.100%, 03/01/06 1,000 1,057
Tri-City Hospital District, Series B (RB) (MBIA)
5.750%, 02/15/03 2,870 2,968
--------------
9,562
--------------
COLORADO -- 4.4%
Boulder, Larimer, & Weld Counties School
District #R-1, Vrain Valley,
Callable 12/15/04 @ 100 (GO) (MBIA)
5.600%, 12/15/05 1,000 1,029
Colorado Department of Transportation (RB) (AMBAC)
6.000%, 06/15/08 3,000 3,233
Colorado State Health Facilities Authority,
Zero Coupon Bond,
Escrowed to Maturity (RB)
5.500%, 07/15/20 (A) 10,000 2,929
Colorado State Housing Finance Authority,
Series A-2, Callable 05/01/06 @ 105 (RB)
7.150%, 11/01/14 1,110 1,200
El Paso County School District #20 (GO) (AMBAC)
6.000%, 12/15/04 1,000 1,051
Greenwood Metropolitan District, Arapahoe
County, Callable 12/01/02 @ 100 (RB) (FSA)
7.300%, 12/01/06 2,000 2,110
Greenwood South Metropolitan District, Arapahoe
County, Callable 12/01/02 @ 100 (RB) (MBIA)
7.250%, 12/01/06 1,500 1,581
Jefferson County, Callable 12/01/04 @ 100
(COP) (MLO) (MBIA)
6.650%, 12/01/08 500 529
Jefferson County School District #R-1 (GO) (MBIA)
6.500%, 12/15/11 2,000 2,262
University of Colorado, Callable 06/01/01 @ 100 (RB)
7.625%, 06/01/06 25 25
Westminster Water & Waste Water Utility
Improvements, Callable 12/01/04 @ 100
(RB) (AMBAC)
6.000%, 12/01/09 1,000 1,048
--------------
16,997
--------------
DELAWARE -- 1.1%
Delaware State, Callable 04/01/01 @ 102 (GO)
6.350%, 04/01/03 1,000 1,029
Delaware Transportation Authority,
Callable 07/01/01 @ 100 (RB)
7.500%, 07/01/02 1,000 1,002
New Castle County, Callable 10/01/03 @ 102 (GO)
5.300%, 10/01/05 2,000 2,059
--------------
4,090
--------------
The accompanying notes are an integral part of the financial statements.
(38 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
DISTRICT OF COLUMBIA -- 0.1%
District of Columbia,
Callable 11/20/00 @ 102 (GO) (MBIA)
6.300%, 06/01/01 $ 425 $ 430
--------------
FLORIDA -- 0.7%
Greater Orlando Aviation Authority, Airport
Facilities (RB) (AMT) (FGIC)
5.250%, 10/01/09 1,815 1,845
Lee County Industrial Development Authority,
Shell Point Village Health Project, Series A (RB)
5.500%, 11/15/08 1,000 953
--------------
2,798
--------------
HAWAII -- 2.3%
Hawaii State Airport Systems,
Series B (RB) (AMT) (FGIC)
6.250%, 07/01/06 2,000 2,134
Hawaii State Harbor Systems,
Series A (RB) (AMT) (FSA)
5.250%, 07/01/08 2,270 2,302
Hawaii State, Series CO (GO) (FGIC)
6.000%, 03/01/05 3,000 3,155
Honolulu, Waste Water Systems,
Zero Coupon Bond (RB) (FGIC)
4.950%, 07/01/14 (A) 2,500 1,157
--------------
8,748
--------------
IDAHO -- 0.3%
Ada & Canyon Counties, Joint School District #2,
Pre-refunded 07/30/05 @ 101 (GO)
5.500%, 07/30/11 (B) 1,000 1,045
--------------
ILLINOIS -- 14.6%
Chicago Water, Zero Coupon Bond (RB) (FGIC)
6.780%, 11/01/08 (A) 5,150 3,438
7.120%, 11/01/09 (A) 6,450 4,077
Chicago, City Colleges, Zero Coupon Bond
(GO) (FGIC)
5.900%, 01/01/15 (A) 10,000 4,525
Chicago, Midway Airport Project,
Series C (RB) (MBIA)
5.500%, 01/01/14 1,300 1,321
Chicago, O' Hare Airport Project,
Series B (RB) (AMT)
5.200%, 04/01/11 1,000 905
Chicago, Park District, Parking Facilities
Authority (RB) (ACA)
5.250%, 01/01/03 1,075 1,083
5.500%, 01/01/08 3,585 3,649
Chicago, Series A (GO) (FGIC)
5.250%, 01/01/11 5,000 5,091
Chicago, Single Family Mortgages, Series A,
Callable 03/01/06 @ 103 (RB) (AMT)
(GNMA) (FNMA) (FHLMC)
5.250%, 03/01/13 250 250
Cook County (RB) (MBIA)
7.250%, 11/01/07 2,000 2,285
Cook County Community Unit School District #65,
Evanston, Series A (GO) (FSA)
6.375%, 05/01/09 3,000 3,298
Cook County Community Unit School District #401,
Elkwood Park, Zero Coupon Bond (GO) (FSA)
5.800%, 12/01/11 (A) 3,625 2,027
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
De Kalb, Single Family Mortgages,
Series A (RB) (AMT) (GNMA)
7.000%, 12/01/01 $ 235 $ 237
Illinois Development Finance Authority, Elmhurst
Community School,
Callable 01/01/11 @ 100 (RB) (FSA)
6.375%, 01/01/13 1,025 1,124
Illinois State Educational Facilities Authority,
Northwestern University, Mandatory
Put 11/01/08 @ 100 (RB)
4.950%, 11/01/32 2,050 2,051
Illinois State Educational Facilities Authority,
The Art Institute of Chicago, Mandatory
Put 03/01/06 @ 100 (RB)
4.700%, 03/01/30 4,500 4,462
Illinois State Health Facilities Authority (RB)
6.500%, 02/15/06 1,130 1,189
Illinois State Health Facilities Authority,
Alexian Brothers Health System (RB) (FSA)
5.000%, 01/01/06 2,000 2,021
Illinois State Sales Tax (RB)
6.000%, 06/15/09 2,500 2,689
Illinois State Sales Tax, Series S (RB)
5.100%, 06/15/10 2,000 2,018
Illinois State, Callable 06/01/09 @ 101 (GO) (FGIC)
5.375%, 06/01/10 2,000 2,068
Melrose Park Water, Callable 07/01/08 @
100 (RB) (MBIA)
4.700%, 07/01/09 1,725 1,693
Metropolitan Pier & Exposition Authority,
Illinois State Sales Tax, Zero Coupon Bond
(RB) (FGIC)
5.000%, 06/15/09 (A) 1,500 967
Metropolitan Pier & Exposition Authority,
McCormick Place Expansion Project,
Series A, Callable 12/15/09 @ 101 (RB) (FGIC)
5.550%, 12/15/11 1,000 1,040
Winnebago County School District #122,
Harlem-Loves Park, Zero Coupon
Bond (GO) (FSA)
5.090%, 01/01/09 (A) 1,990 1,312
5.200%, 01/01/17 (A) 3,000 1,190
--------------
56,010
--------------
INDIANA -- 2.0%
Franklin Township Independent School Building
Corporation (RB)
5.750%, 07/15/09 1,235 1,306
Indiana State Educational Facilities Authority,
St. Joseph's College Project (GO)
6.100%, 10/01/09 1,660 1,700
Indiana State Educational Facilities Authority,
St. Joseph's College Project,
Callable 10/01/09 @ 102 (GO)
6.600%, 10/01/14 1,410 1,442
Indiana State Housing Finance Authority,
Callable 07/01/05 @ 102 (RB)
6.150%, 07/01/17 1,155 1,165
Indiana University, Series K, Zero Coupon Bond
(RB) (MBIA)
5.360%, 08/01/11 (A) 3,750 2,109
--------------
7,722
--------------
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 39)
<PAGE>
STATEMENTS OF NET ASSETS SEPTEMBER 30, 2000
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
IOWA -- 1.0%
Salix Pollution Control, Interstate Power Company,
Mandatory Put 01/01/04 @ 100 (RB)
4.200%, 01/01/13 $ 3,700 $ 3,700
--------------
KANSAS -- 1.2%
Butler County Public Building Authority (RB) (MBIA)
6.375%, 10/01/10 1,000 1,114
Sedgwick & Shawnee Counties, Single Family
Mortgages, Series A-2 (RB) (GNMA)
6.700%, 06/01/29 2,260 2,518
Sedgwick County School District #267 (GO) (AMBAC)
5.250%, 11/01/12 1,045 1,061
--------------
4,693
--------------
KENTUCKY -- 0.5%
Kentucky Economic Development Finance Authority,
Norton Healthcare, Series A,
Callable 10/01/10 @ 101 (RB)
6.250%, 10/01/12 2,000 1,967
--------------
LOUISIANA -- 0.7%
Jefferson County, Mandatory Put 09/01/03 @
100 (GO) (FGIC)
6.150%, 09/01/05 2,500 2,557
--------------
MAINE -- 0.8%
Maine Municipal Bond Bank, Series B (GO) (FSA)
5.750%, 11/01/10 2,000 2,131
Maine State Housing Authority, Series A,
Callable 02/01/04 @ 102 (RB)
5.650%, 11/15/20 1,000 986
--------------
3,117
--------------
MASSACHUSETTS -- 2.6%
Massachusetts Bay Transportation Authority (GO) (RB)
6.250%, 03/01/12 1,875 2,070
Massachusetts Bay Transportation Authority,
General Transportation System Project,
Series C (RB) (FGIC)
5.750%, 03/01/10 2,100 2,235
Massachusetts Commonwealth, Special Obligation,
Series A (RB)
5.500%, 06/01/13 1,000 1,034
Massachusetts State Health & Educational Facilities
Authority, Partners Healthcare System,
Series A (RB) (MBIA)
5.100%, 07/01/10 3,000 3,019
Massachusetts State Housing Finance Agency,
Series A (RB)
6.300%, 10/01/13 1,000 1,023
Massachusetts State Housing Finance Agency,
Series 41 (RB)
5.350%, 12/01/02 495 499
--------------
9,880
--------------
MICHIGAN -- 4.6%
Detroit (GO) (AMT) (FSA)
5.750%, 04/01/09 1,255 1,317
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Michigan Municipal Bond Authority,
Clean Water Revolving Fund (RB)
5.500%, 10/01/09 $ 2,500 $ 2,619
Michigan State Building Authority,
Callable 10/01/06 @ 102 (RB) (AMBAC)
5.050%, 10/01/09 545 547
Michigan State Hospital Finance Authority,
Ascension Health Credit, Series B,
Mandatory Put 11/15/05 @ 100 (RB)
5.200%, 11/15/33 3,000 2,988
Michigan State Housing Development Authority,
Callable 07/15/04 @ 102 (RB) (FNMA)
5.125%, 07/15/08 1,980 1,965
Oakland University, Callable 05/15/07 @
100 (RB) (MBIA)
5.600%, 05/15/10 1,000 1,035
Rochester Community School District, Series I,
Callable 05/01/10 @100 (GO) (FGIC)
5.375%, 05/01/11 2,000 2,047
Wayne Charter County Airport, Callable 12/01/08
@ 101 (RB) (AMT) (MBIA)
5.250%, 12/01/09 5,000 5,080
--------------
17,598
--------------
MINNESOTA -- 5.8%
Anoka County, Resource Recovery,
Northern States Power (RB)
4.350%, 12/01/04 2,200 2,161
Bloomington Port Authority, Mall of America Project,
Series A, Callable 02/01/04 @ 100 (RB) (FSA)
5.450%, 02/01/09 375 376
Minneapolis, Hennepin Avenue Project, Series C (GO)
6.200%, 03/01/02 800 819
Minneapolis, St. Paul Metropolitan Council,
Metropolitan Area Transit, Series A (GO)
5.000%, 02/01/07 1,000 1,020
Minneapolis & St. Paul Housing & Redevelopment
Authority, Pre-refunded 08/15/02
@ 102 (RB) (MBIA)
7.400%, 08/15/05 (B) 600 615
Minneapolis & St. Paul Metropolitan Airports
Commission, Series B (RB) (AMT) (FGIC)
5.750%, 01/01/10 1,000 1,052
Minneapolis & St. Paul Metropolitan Airports
Commission, Series B,
Callable 01/01/08 @ 101 (RB) (AMT) (AMBAC)
5.375%, 01/01/10 3,000 3,073
Northern Minnesota Municipal Power Agency,
Series A, Pre-refunded 01/01/03
@ 102 (RB) (AMBAC)
5.700%, 01/01/05 (B) 2,500 2,607
Robbinsdale, Minnesota Independent
School District # 281 (GO) (MSDCEP)
5.000%, 02/01/09 1,250 1,264
5.250%, 02/01/12 1,435 1,447
St. Paul Housing & Redevelopment Authority,
Callable 08/01/06 @ 102.5 (RB) (AMBAC)
6.450%, 02/01/08 1,240 1,366
6.450%, 08/01/08 1,275 1,406
The accompanying notes are an integral part of the financial statements.
(40 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
St. Paul Housing & Redevelopment Authority,
Tax Increment Revenue,
Callable 08/01/06 @ 102.5 (AMBAC)
6.400%, 02/01/07 $ 1,195 $ 1,302
6.400%, 08/01/07 1,205 1,321
6.500%, 02/01/09 1,315 1,448
Western Minnesota Municipal Power Agency,
Series B (RB) (AMBAC)
6.000%, 01/01/03 1,000 1,031
--------------
22,308
--------------
MISSOURI -- 1.1%
Kansas City School District, Callable 02/01/01
@ 102 (RB) (MLO) (FGIC)
6.400%, 02/01/02 2,000 2,048
The 210 Highway Transportation Development
District, Series A (RB) (MERC)
4.800%, 07/15/06 2,375 2,368
--------------
4,416
--------------
NEBRASKA -- 5.9%
Buffalo County Hospital Authority #1,
Escrowed to Maturity (RB)
6.375%, 11/01/03 100 103
Douglas County Hospital Authority #1 (RB) (AMBAC)
4.600%, 09/01/04 1,255 1,253
4.800%, 09/01/08 1,400 1,391
4.900%, 09/01/09 1,500 1,495
Douglas County, Nebraska Zoo Facility,
Callable 09/01/09 @ 100 (RB)
5.650%, 09/01/11 1,000 1,036
Municipal Energy Agency of Nebraska,
Series A (RB) (AMBAC)
5.450%, 04/01/02 750 761
Municipal Energy Agency of Nebraska,
Series A, Callable 04/01/02
@ 102 (RB) (AMBAC)
5.600%, 04/01/03 750 768
Nebraska Educational Finance Authority,
Concordia University Project,
Callable 12/15/08 @ 100 (RB)
5.250%, 12/15/15 1,270 1,178
Nebraska Educational Finance Authority,
Creighton University Project,
Callable 01/01/06 @ 101 (RB) (AMBAC)
5.600%, 01/01/07 2,500 2,607
Nebraska Educational Telecommunication
Commission, Leasing Project,
Series 2000 (RB)
6.000%, 02/01/06 2,025 2,141
Nebraska Public Power District,
Electric Systems, Series A (RB)
5.500%, 01/01/01 250 251
Omaha Northwest Library Facilities Corporation,
Callable 08/15/07 @ 102 (RB) (MLO)
5.250%, 08/15/12 2,475 2,491
Omaha Public Power District, Series B (RB)
5.000%, 02/01/03 1,000 1,010
5.200%, 02/01/06 3,350 3,428
Omaha, Pre-refunded 09/01/01 @ 102 (GO)
5.900%, 09/01/02 (B) 500 516
Omaha Sewer Systems (RB)
5.200%, 01/15/02 1,000 1,009
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Platte County Hospital Authority,
Columbus Community Hospita l Project,
Callable 05/01/10 @ 101 (RB) (AG)
5.850%, 05/01/14 $ 650 $ 657
University of Nebraska, Lincoln Parking Project,
Callable 08/01/05 @ 102 (RB)
5.100%, 06/01/09 735 738
--------------
22,833
--------------
NEVADA -- 0.5%
Clark County School District, Building & Renovation,
Series B, Callable 06/15/07 @ 101 (GO) (FGIC)
5.750%, 06/15/08 1,000 1,057
Washoe County School District,
Callable 08/01/02 @ 101 (GO) (MBIA)
5.700%, 08/01/03 1,000 1,029
--------------
2,086
--------------
NEW JERSEY -- 1.1%
New Jersey State (GO)
5.900%, 08/01/02 1,000 1,026
New Jersey State Transportation Trust Fund
Authority, Series A (RB)
5.500%, 06/15/08 2,000 2,093
New Jersey State Turnpike Authority, Series A,
Callable 01/01/01 @ 102 (RB) (AMBAC)
6.750%, 01/01/08 1,000 1,025
--------------
4,144
--------------
NEW MEXICO -- 0.7%
Albuquerque Joint Water & Sewer Systems,
Series A (RB)
5.250%, 07/01/09 2,200 2,260
Farmington Utility Systems,
Escrowed to Maturity (RB)
10.000%, 01/01/02 245 255
--------------
2,515
--------------
NEW YORK -- 2.2%
Hempstead Town Industrial Development Agency,
Callable 12/01/06 @ 102 (RB)
5.000%, 12/01/08 2,000 2,013
Nassau County, General Improvements,
Series V (GO) (AMBAC)
5.150%, 03/01/04 1,400 1,425
New York City Transitional Finance Authority,
Series C, Callable 05/01/08 @ 101 (RB)
4.750%, 05/01/11 1,605 1,565
New York State Dormitory Authority (RB) (MLO) (FSA)
4.750%, 07/01/08 1,925 1,916
New York State Environmental Facilities Corporation,
Pollution Control, Callable 11/15/04 @102 (RB)
6.400%, 05/15/06 1,250 1,354
--------------
8,273
--------------
NORTH DAKOTA -- 0.4%
Grand Forks, United Hospital Obligated Group
(RB) (MBIA)
6.000%, 12/01/00 1,000 1,002
North Dakota State Industrial Commission,
Lignite Program, Series A (RB)
5.750%, 11/15/05 500 511
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 41)
<PAGE>
STATEMENTS OF NET ASSETS SEPTEMBER 30, 2000
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
North Dakota State Student Loan, Series A,
Callable 11/20/00 @ 101 (RB) (AMBAC)
6.900%, 07/01/01 $ 5 $ 5
North Dakota State Student Loan, Series A,
Escrowed to Maturity (RB)
6.100%, 07/01/01 25 25
--------------
1,543
--------------
Ohio-- 3.8%
Butler County Transportation Improvement District,
Series A (RB) (FSA)
5.500%, 04/01/08 3,000 3,131
Franklin County Health Care, Friendship Village,
Callable 08/15/08 @ 102 (RB)
5.250%, 08/15/18 2,000 1,566
Lorain County Hospital Revenue,
Catholic Healthcare Partners, Series B,
Callable 09/01/07 @ 102 (RB) (MBIA)
5.375%, 09/01/09 1,000 1,036
Mahoning County Hospital Facilities Revenue,
Series A (RB) (MBIA)
4.800%, 11/15/09 1,795 1,780
Ohio State Building Authority, Administration
Building Fund Project,
Callable 10/01/08 @ 101 (RB) (MLO)
5.250%, 10/01/09 3,000 3,082
Ohio State Building Authority, Adult Correctional
Facilities Project (RB) (MLO) (MBIA)
5.500%, 10/01/04 1,000 1,032
Richland County Hospital Facilities, Medcentral
Health System, Series A (RB)
5.450%, 11/15/04 690 693
5.500%, 11/15/05 725 729
5.550%, 11/15/06 765 769
5.650%, 11/15/08 595 596
--------------
14,414
--------------
OKLAHOMA -- 2.3%
Oklahoma County Housing Finance Authority,
Zero Coupon Bond,
Pre-refunded 03/01/06 @ 56.915 (RB)
5.740%, 07/01/12 (A) (B) 3,690 1,606
Oklahoma Housing Finance Agency,
Mandatory Put @ 100 (RB) (FNMA)
5.500%, 11/01/05 3,000 3,040
Tulsa County Independent School District #9 (GO)
5.750%, 06/01/04 2,000 2,072
Tulsa Educational Facilities Authority,
Holland Hall School Project, Series B,
Callable 12/01/08 @ 101 (RB)
4.600%, 12/01/09 1,195 1,117
Tulsa Metropolitan Utility Authority,
Callable 09/01/05 @ 102 (RB)
5.600%, 09/01/06 1,000 1,043
--------------
8,878
--------------
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
OREGON -- 2.0%
Lane County School District #19, Springfield,
Pre-refunded 10/15/04 @ 101 (GO) (MBIA)
5.900%, 10/15/06 (B) $ 1,000 $ 1,058
Lane County School District #52, Bethel (GO) (SBGT)
5.500%, 06/15/09 1,000 1,049
Polk, Marion & Benton Counties,
School District #13-J (GO) (FGIC)
5.500%, 12/01/04 1,015 1,053
Portland Community College District, Series A,
Pre-refunded 07/01/02 @ 100 (GO)
6.000%, 07/01/12 (B) 500 513
Washington County Criminal Justice Facilities,
Pre-refunded 12/01/04 @ 100 (GO)
5.625%, 12/01/05 (B) 900 936
Washington County Unified Sewer Agency,
Series 1 (RB) (FGIC)
5.750%, 10/01/08 2,000 2,132
Yamhill County School District #40 (GO) (FGIC)
5.375%, 06/01/04 1,000 1,029
--------------
7,770
--------------
PENNSYLVANIA -- 1.9%
Erie County Prison Authority, Pre-refunded
11/01/01 @ 100 (RB) (MLO) (MBIA)
6.600%, 11/01/02 (B) 1,000 1,023
6.700%, 11/01/03 (B) 1,000 1,024
Governor Mifflin School District, Pre-refunded
02/01/02 @ 100 (GO) (AMBAC)
6.500%, 02/01/13 (B) 2,000 2,052
Montgomery County, Industrial Development
Authority, Mandatory Put 10/01/04 @ 100 (RB)
5.200%, 10/01/30 2,000 1,989
Northumberland County, Commonwealth Lease,
Pre-refunded 10/15/01 @100 (RB) (MLO) (MBIA)
6.600%, 10/15/02 (B) 1,000 1,023
--------------
7,111
--------------
PUERTO RICO -- 0.3%
Puerto Rico Electric Power Authority,
Series A (RB) (MBIA)
6.000%, 07/01/06 1,000 1,082
Puerto Rico Housing Finance Corporation,
Single Family Mortgages (RB) (AMT) (GNMA)
6.000%, 02/01/02 110 112
--------------
1,194
--------------
RHODE ISLAND -- 0.3%
Rhode Island Depositors Economic Protection
Corporation (RB) (FSA)
6.250%, 08/01/03 1,000 1,044
--------------
The accompanying notes are an integral part of the financial statements.
(42 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
SOUTH CAROLINA -- 1.1%
Piedmont Municipal Power Agency,
Electric Revenue (RB) (FGIC)
6.250%, 01/01/04 $ 2,350 $ 2,440
South Carolina State Public Service Authority,
Series A (RB) (MBIA)
5.500%, 01/01/10 1,665 1,730
--------------
4,170
--------------
SOUTH DAKOTA -- 1.3%
Deadwood, South Dakota Warrants (COP)
5.500%, 11/01/07 800 809
5.600%, 11/01/08 845 858
Sioux Falls (COP) (MLO)
6.450%, 08/01/01 500 508
South Dakota State Health & Educational Facilities
Authority, Westhills Village Retirement (RB)
5.500%, 09/01/04 640 627
5.650%, 09/01/05 665 650
5.800%, 09/01/06 735 715
5.900%, 09/01/07 755 732
--------------
4,899
--------------
TENNESSEE -- 0.1%
Shelby County Health, Educational & Housing Facilities
Board, St. Jude's Children's Research (RB)
5.000%, 07/01/09 500 499
--------------
TEXAS -- 4.7%
Abilene Health Facilities Development, Sears
Methodist Retirement, Series A (RB)
5.100%, 11/15/05 1,115 1,051
5.250%, 11/15/06 1,175 1,101
5.300%, 11/15/07 1,000 918
5.350%, 11/15/08 1,300 1,190
Dallas County, Pre-refunded 02/15/01 @ 100 (GO)
6.400%, 08/15/03 (B) 750 755
Dallas-Fort Worth International Airport Facility
Improvement Corporation, American Airlines,
Series B, Mandatory Put 11/01/05 @ 100
(RB) (AMT)
6.050%, 05/01/29 2,000 2,005
Galveston County Special Tax Revenue (RB) (MBIA)
6.400%, 02/01/05 185 188
Galveston County Special Tax Revenue,
Escrowed to Maturity (RB) (MBIA)
6.400%, 02/01/05 315 337
Houston Housing Finance Corporation (RB)
8.000%, 06/01/14 690 737
Irving Independent School District, Series A,
Zero Coupon Bond (GO) (PSFG)
5.000%, 02/15/09 (A) 6,190 4,053
North Central Health Facilities Authority,
Retirement Facility Series A (RB)
7.000%, 11/15/10 4,000 3,902
Nueces County Housing Finance Corporation,
Dolphins Landing Apartments Project,
Series A, Callable 07/01/10 @ 102 (RB)
6.750%, 07/01/20 1,910 1,897
--------------
18,134
--------------
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
UTAH -- 1.1%
Nebo School District, Callable 04/01/01
@ 100 (GO) (FGIC)
5.500%, 04/01/04 $ 500 $ 502
Salt Lake County Municipal Building Authority,
Series A (RB) (MLO)
6.000%, 10/01/03 525 545
Utah State Housing Finance Agency, Single Family
Mortgages (RB) (FHA) (VA)
6.350%, 01/01/02 40 40
5.650%, 07/01/06 345 350
5.950%, 07/01/08 1,810 1,894
Utah State Housing Finance Agency,
Single Family Mortgages,
Callable 07/01/05 @102 (RB) (FHA) (VA)
6.300%, 01/01/18 820 846
--------------
4,177
--------------
VIRGINIA -- 1.4%
Riverside Regional Jail Authority,
Callable 07/01/05 @ 102 (RB) (MBIA)
5.700%, 07/01/08 2,000 2,101
Virginia State Housing Development Authority,
Series D (RB)
6.100%, 01/01/14 1,110 1,142
Virginia State Housing Development Authority,
Series H (RB)
6.200%, 07/01/04 1,000 1,020
Virginia State Peninsula Regional Jail Authority
(RB) (MBIA)
5.300%, 10/01/09 1,000 1,022
--------------
5,285
--------------
WASHINGTON -- 12.6%
Clark County Public Utility District #1,
Callable 01/01/01 @ 102 (RB) (FGIC)
6.100%, 01/01/02 750 764
Clark County School District #37, Vancouver
(GO) (FSA)
5.250%, 12/01/14 1,515 1,519
Clark County School District #37, Vancouver,
Callable 12/01/02 @ 100 (GO)
6.100%, 12/01/04 1,000 1,029
Conservation & Renewable Energy Systems,
Washington Conservation Project (RB)
5.650%, 10/01/03 700 720
Grant County Public Utility District #2 (RB)
5.750%, 01/01/02 670 679
Island County School District #206, South Widbey,
Callable 12/01/04 @ 100 (GO) (AMBAC)
5.750%, 12/01/06 700 726
King County, Series A, Pre-refunded 12/01/00
@ 100 (GO)
6.900%, 12/01/02 (B) 500 502
King County, Series B, Callable 12/01/07 @ 102 (GO)
5.850%, 12/01/13 3,000 3,130
King County Public Hospital District #4 (RB)
5.800%, 12/01/03 910 929
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 43)
<PAGE>
STATEMENTS OF NET ASSETS SEPTEMBER 30, 2000
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
King County School District #403, Renton,
Pre-refunded 12/01/02 @ 101 (GO)
6.050%, 12/01/03 (B) $ 875 $ 911
King County School District #408, Auburn (GO)
6.200%, 12/01/02 515 532
King County School District #415, Kent (GO)
5.750%, 12/01/01 950 964
King County School District #415, Kent,
Pre-refunded 06/01/04 @ 100 (GO) (AMBAC)
6.450%, 06/01/06 (B) 920 977
Kitsap County School District #401, Central Kitsap,
Pre-refunded 12/01/02 @ 101 (GO)
6.625%, 12/01/08 (B) 750 789
Pierce County School District #320, Sumner (GO)
6.000%, 12/01/06 1,000 1,041
Pierce County School District #401, Peninsula,
Series A (GO)
5.950%, 12/01/01 640 650
Pierce County School District #403, Bethel,
Callable 12/01/01 @ 100 (GO)
6.200%, 12/01/02 1,285 1,308
Pierce County School District #403, Bethel,
Callable 12/01/02 @ 100 (GO)
6.350%, 12/01/04 500 517
Pierce County Sewer Improvements (RB)
5.000%, 02/01/02 500 500
Port Seattle Passenger Facility Charge,
Series B (RB) (AMT) (AMBAC)
5.000%, 12/01/07 3,000 3,005
Port Tacoma, Series A (GO)
6.300%, 06/01/01 790 799
Snohomish County Housing Authority,
Callable 04/01/06 @ 100 (RB)
6.300%, 04/01/16 1,035 1,054
Snohomish County Public Utilities District #1,
Callable 05/01/01 @ 100 (RB)
5.850%, 11/01/17 1,000 1,000
Snohomish County School District #2, Everett,
Series A, Callable 06/01/01 @ 100 (GO)
6.700%, 06/01/02 1,200 1,216
Snohomish County School District #2, Everett,
Pre-refunded 12/01/03 @ 102 (GO) (MBIA)
6.000%, 12/01/06 (B) 950 1,007
Snohomish County School District #2, Everett,
Callable 12/01/03 @ 102 (GO) (MBIA)
6.000%, 12/01/06 850 895
Snohomish County School District #6, Mukilteo,
Pre-refunded 06/01/01 @ 100 (GO)
6.800%, 12/01/04 (B) 900 914
Snohomish County School District #6, Mukilteo (GO)
6.250%, 12/01/01 900 918
Snohomish County Solid Waste, Pre-refunded
12/01/01 @ 102 (GO) (MBIA)
6.800%, 12/01/03 (B) 650 680
South Columbia Basin Irrigation District (RB)
5.800%, 12/01/01 500 508
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Spokane County Regional Solid Waste Management,
Callable 12/01/02 @ 102 (RB) (AMBAC)
6.400%, 12/01/03 $ 800 $ 839
Spokane County School District #81, Spokane (GO)
5.900%, 12/01/02 1,000 1,029
Spokane County School District #356, Central Valley,
Zero Coupon Bond (GO) (FGIC)
5.030%, 12/01/14 (A) 8,690 3,973
Spokane County Sewer, Callable 06/01/02 @ 100 (RB)
6.150%, 06/01/05 1,470 1,505
Tacoma, Series A, Callable 07/01/02 @ 100 (GO)
5.900%, 07/01/03 600 613
Tacoma Electric Systems,
Pre-refunded 01/01/04 @ 100
(AMBAC)
6.000%, 01/01/06 (B) 185 193
Tacoma Electric Systems, (RB) (AMBAC)
6.000%, 01/01/06 1,215 1,257
Tacoma Utility, Pre-refunded 12/01/01 @ 101
(RB) (MBIA)
6.200%, 12/01/03 (B) 575 592
Thurston County School District #111, Olympia,
Pre-refunded 12/01/02 @ 100 (GO)
6.700%, 12/01/03 (B) 1,000 1,045
Washington State Housing Finance,
Hearthstone Project,
Callable 01/01/05 @ 102 (RB)
6.000%, 01/01/10 810 847
Washington State Housing Finance, Single
Family Mortgages (RB) (GNMA) (FNMA)
6.700%, 07/01/02 140 142
Washington State Public Power Supply System,
Nuclear Project #2, Series A (RB) (AMBAC)
5.700%, 07/01/11 1,000 1,036
Washington State Public Power Supply System,
Nuclear Project #3, Series B (RB)
5.250%, 07/01/03 1,090 1,107
Washington State, Series A,
Callable 04/01/01 @ 102 (COP) (MLO)
6.800%, 04/01/05 705 726
Washington State, Series C (GO)
5.500%, 07/01/14 2,275 2,339
Washington State, Series R (GO)
6.200%, 09/01/01 1,000 1,016
--------------
48,442
--------------
WISCONSIN -- 2.6%
Hartford Promisory Notes,
Callable 09/01/08 @ 100 (GO) (FSA)
5.250%, 09/01/09 1,575 1,609
Milwaukee County, Series A,
Callable 09/01/02 @ 100 (GO)
5.550%, 09/01/03 1,700 1,730
5.875%, 09/01/07 500 511
Walworth County Promisory Notes,
Callable 04/01/08 @ 100 (GO)
5.500%, 04/01/09 1,500 1,554
The accompanying notes are an integral part of the financial statements.
(44 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000)/SHARES VALUE (000)
--------------------------------------------------------------------------------
Wisconsin State Health & Education Facilities
Authority, Aurora Health Care, Series A,
Callable 02/15/09 @ 101 (RB)
5.500%, 02/15/20 $ 1,500 $ 1,245
Wisconsin State Health & Education Facilities
Authority, Monroe Clinic (RB)
4.450%, 02/15/06 925 857
4.700%, 02/15/09 1,060 955
Wisconsin State Housing & Economic Development
Authority, Series A (GO)
5.000%, 11/01/01 1,585 1,588
--------------
10,049
--------------
WYOMING -- 0.2%
Sweetwater County, Pacific Power & Light Project,
Pre-refunded 12/01/01 @ 100 (RB)
6.500%, 12/01/07 (B) 700 716
--------------
TOTAL MUNICIPAL BONDS
(Cost $375,304) 377,674
--------------
RELATED PARTY MONEY MARKET FUND -- 0.4%
First American Tax Free Obligations Fund (C) 1,485,641 1,486
--------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $1,486) 1,486
--------------
TOTAL INVESTMENTS -- 98.7%
(Cost $376,790) 379,160
--------------
OTHER ASSETS AND LIABILITIES, NET -- 1.3% 5,113
--------------
NET ASSETS:
Portfolio Capital--Class A ($.0001 par value
2 billion authorized) based on 858,261
outstanding shares $ 9,451
Portfolio Capital--Class Y ($.0001 par value--
2 billion authorized) based on 35,861,737
outstanding shares 375,485
Accumulated net realized loss on investments (3,033)
Net unrealized appreciation of investments 2,370
--------------
TOTAL NET ASSETS -- 100.0% $ 384,273
--------------
Net asset value and redemption price per share -- Class A $ 10.48
Maximum sales charge of 2.50% (D) 0.27
--------------
Offering price per share -- Class A $ 10.75
--------------
Net asset value, offering price, and redemption
price per share -- Class Y $ 10.46
--------------
INTERMEDIATE TAX FREE FUND (CONCLUDED)
--------------------------------------------------------------------------------
(A) The rate shown is the effective yield at the time of purchase.
(B) Pre-refunded issues are typically backed by U.S. Government obligations or
municipal bonds. These bonds mature at the call date and price indicated.
(C) This money market fund is advised by U.S. Bank National Association who also
serves as Advisor for this Fund. See also the notes to the financial
statements.
(D) The offer price is calculated by dividing the net asset value by 1 minus the
maximum sales charge of 2.50%.
ACA--American Capital Access
AG--Asset Guaranty
AMBAC--American Municipal Bond Assurance Corporation
AMT--Alternative Minimum Tax. As of September 30, 2000, the aggregate market
value of securities subject to the AMT was $25,221,000, which represents
6.6% of net assets.
COP--Certificates of Participation
FGIC--Financial Guaranty Insurance Company
FHA--Federal Housing Authority
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
FSA---Financial Security Assurance
GNMA--Government National Mortgage Association
GO--General Obligation
MBIA--Municipal Bond Insurance Association
MERC--Mercantile Bank
MLO--Municipal Lease Obligation
MSDCEP--Minnesota School District Credit Enhancement Program
PSFG--Permanent School Fund Guaranty
RB--Revenue Bond
SBGT--School Board Guaranty Trust
VA--Veterans Administration
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 45)
<PAGE>
STATEMENTS OF NET ASSETS SEPTEMBER 30, 2000
MINNESOTA INTERMEDIATE TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
MUNICIPAL BONDS -- 98.6%
REVENUE BONDS -- 53.5%
AUTHORITY -- 1.9%
St. Paul Port Authority, Hotel Facilities,
Radisson Kellogg Project, Series 2
6.700%, 08/01/07 $ 1,800 $ 1,778
St. Paul Port Authority, Hotel Facilities,
Radisson Kellogg Project, Series 2,
Callable 08/01/08 @ 103
6.875%, 08/01/10 1,685 1,671
Stearns County Housing & Redevelopment
Authority (FSA) (MLO)
4.950%, 02/01/09 1,540 1,546
--------------
4,995
--------------
BUILDING -- 0.6%
Washington County Housing & Redevelopment
Authority, Jail Facility,
Callable 02/01/03 @ 100 (MBIA) (MLO)
5.400%, 02/01/08 1,580 1,600
-------------
ECONOMIC DEVELOPMENT -- 1.6%
Minnesota State Agricultural & Economic
Development Board, Small Business
Development, Series B (AMT)
6.500%, 08/01/08 1,335 1,359
Minnesota State Agricultural & Economic
Development Board, Small Business
Development, Series C (AMT)
6.625%, 08/01/08 1,210 1,241
Minnesota State Agricultural & Economic
Development Board, Small Business
Development, Series C,
Pre-refunded 08/01/04 @100 (AMT)
5.500%, 08/01/10 (A) 1,525 1,562
-------------
4,162
-------------
EDUCATION -- 2.9%
Minnesota State Higher Education Facilities Authority,
Augsburg College
4.500%, 10/01/06 505 481
4.850%, 10/01/09 520 496
Minnesota State Higher Education Facilities Authority,
Augsburg College, Callable 10/01/09 @ 100
5.000%, 10/01/11 500 474
5.000%, 10/01/12 500 468
Minnesota State Higher Education Facilities Authority,
Carleton College, Callable 05/01/06 @ 100
5.750%, 11/01/12 1,375 1,417
Minnesota State Higher Education Facilities Authority,
St. Benedict College, Callable 03/01/07 @ 100
4.875%, 03/01/08 1,000 970
5.100%, 03/01/11 2,885 2,787
Minnesota State Higher Education Facilities Authority,
University of St. Thomas, Series 4
5.250%, 04/01/12 385 385
-------------
7,478
-------------
MINNESOTA INTERMEDIATE TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
HEALTHCARE -- 11.3%
Austin Housing & Redevelopment Authority,
Gerard Project Health Care Facilities,
Callable 09/01/09 @ 102
6.625%, 09/01/19 $ 1,540 $ 1,400
Cuyuna Range Hospital District, Series A,
Callable 06/01/07 @ 102
5.500%, 06/01/10 435 394
5.650%, 06/01/12 940 839
Duluth Economic Development Authority, Health
Care Facility, Escrowed to Maturity (AMBAC)
6.100%, 11/01/04 250 264
Duluth Economic Development Authority, Health Care
Facility, Pre-refunded 11/01/02 @ 102 (AMBAC)
6.100%, 11/01/04 (A) 650 683
Hastings Health Care Facility, Callable 09/15/08
@ 100 (ACA)
5.000%, 09/15/13 500 461
Minneapolis & St. Paul Housing & Redevelopment
Authority, Healthspan, Series A,
Callable 11/15/03 @ 102 (AMBAC)
5.000%, 11/15/13 2,000 1,938
Minnesota Agricultural & Economic Development
Board, Benedictine Health, Series A (MBIA)
5.000%, 02/15/10 3,815 3,838
Minnesota Agricultural & Economic Development
Board, Fairview Hospital Project, Series A,
Callable 11/15/07 @ 102 (MBIA)
5.400%, 11/15/08 1,000 1,038
5.500%, 11/15/17 1,500 1,488
5.750%, 11/15/26 500 499
New Hope Housing & Health Care Facilities,
Masonic Home North Ridge
5.000%, 03/01/04 330 317
5.100%, 03/01/05 550 523
5.200%, 03/01/06 645 607
5.300%, 03/01/07 685 639
New Hope Housing & Health Care Facilities,
Masonic Home North Ridge,
Callable 03/01/09 @ 102
5.500%, 03/01/10 500 452
Plymouth Health Facilities, Callable 06/01/04
@ 102 (CGIC) (FSA)
6.200%, 06/01/11 1,360 1,439
Rochester, St. Mary's Hospital, Escrowed to Maturity
5.750%, 10/01/07 2,165 2,221
St. Cloud Health Care
5.500%, 05/01/07 500 518
5.500%, 05/01/08 1,450 1,504
St. Louis Park Health Care Facilities,
Callable 07/01/03 @ 102 (AMBAC)
4.600%, 07/01/05 6,000 5,902
St. Paul Housing & Redevelopment Authority,
Health Care Facility, Regions Hospital Project
5.000%, 05/15/06 1,000 955
5.000%, 05/15/08 1,195 1,110
-------------
29,029
-------------
The accompanying notes are an integral part of the financial statements.
(46 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
MINNESOTA INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
HOUSING -- 7.1%
Coon Rapids Multifamily Housing, Woodland North
Apartments, Callable 12/01/03 @ 100 (FHA)
5.625%, 12/01/09 $ 400 $ 402
Coon Rapids Single Family Housing,
Callable 09/01/04 @ 102
5.900%, 09/01/06 415 417
Dakota County Housing & Redevelopment Authority,
Single Family Mortgages,
Callable 04/01/04 @ 102 (AMT) (FNMA)
6.250%, 10/01/04 600 605
Dakota County Housing & Redevelopment Authority,
Single Family Mortgages,
Callable 10/01/07 @ 101.5 (AMT) (GNMA)
5.125%, 10/01/20 1,353 1,343
Dakota County Housing & Redevelopment Authority,
South St. Paul, Callable 09/01/01 @ 100
(FHA) (GNMA) (VA)
7.250%, 03/01/06 220 221
Dakota, Washington & Stearns Counties Housing &
Redevelopment Authority, Single Family
Mortgages, Callable 03/01/04 @ 102
(AMT) (FNMA)
6.000%, 09/01/04 135 136
6.500%, 09/01/10 215 219
Minneapolis & St. Paul Housing Finance Board,
Single Family Mortgages, Series A,
Callable 06/01/01 @ 100
(AMT) (FHA) (GNMA) (VA)
7.875%, 12/01/12 120 120
Minneapolis Mortgage Revenue, Zero Coupon Bond,
Callable 10/01/05 @ 100
7.100%, 10/01/12 (B) 2,950 1,347
Minnesota State Housing Finance Agency, Rental
Housing, Series D (MBIA)
5.050%, 08/01/03 785 788
5.150%, 08/01/04 760 764
Minnesota State Housing Finance Agency, Rental
Housing, Series D,
Callable 02/01/05 @ 102 (MBIA)
5.450%, 08/01/07 2,370 2,390
Minnesota State Housing Finance Agency,
Single Family Mortgages, Series B,
Callable 07/01/09 @ 100 (AMT)
5.550%, 07/01/24 1,000 1,010
Minnesota State Housing Finance Agency,
Single Family Mortgages, Series C,
Callable 01/01/01 @ 102 (FHA) (VA)
6.600%, 07/01/02 165 169
Moorhead Economic Development Authority,
Eventide Senior Housing, Series B,
Callable 06/01/04 @ 102
5.750%, 06/01/16 1,360 1,143
South St. Paul Housing & Redevelopment Authority,
Single Family Mortgages,
Callable 09/01/05 @ 100 (FNMA)
5.100%, 09/01/07 765 772
St. Louis Park Housing & Redevelopment Authority,
Single Family Mortgages,
Callable 04/20/03 @ 100 (GNMA)
6.500%, 10/20/03 123 125
MINNESOTA INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
St. Paul Housing & Redevelopment Authority,
Downtown & Seventh Place Project, Escrowed
to Maturity, Callable 09/01/03 @ 101 (AMBAC)
5.200%, 09/01/04 $ 4,000 $ 4,074
St. Paul Housing & Redevelopment Authority,
Downtown & Seventh Place Project, Escrowed
to Maturity, Callable 09/01/04 @ 100 (AMBAC)
5.350%, 09/01/07 1,500 1,544
Vadnais Heights, Single Family Mortgages
5.500%, 11/01/04 445 450
6.000%, 11/01/09 260 264
-------------
18,303
-------------
IMPROVEMENTS -- 0.2%
Minnesota State Retirement Systems Building,
Callable 06/01/10 @ 100
5.450%, 06/01/12 550 567
-------------
POLLUTION CONTROL -- 2.7%
Minnesota State Public Facilities Authority, Water
Pollution Control, Callable 03/01/07 @ 100
5.000%, 03/01/09 2,000 2,017
Minnesota State Public Facilities Authority, Water
Pollution Control, Series A,
Callable 03/01/08 @ 100
4.500%, 03/01/10 5,000 4,821
-------------
6,838
-------------
TAX REVENUE -- 4.2%
Bloomington Port Authority, Mall of America Project,
Series A (FSA)
5.000%, 02/01/02 1,585 1,596
4.800%, 02/01/08 500 500
4.900%, 02/01/09 1,000 1,003
Bloomington Port Authority, Mall of America Project,
Series A, Callable 02/01/04 @ 100 (FSA)
5.450%, 02/01/09 925 929
Minneapolis Community Development Agency,
Zero Coupon Bond (MBIA)
6.240%, 03/01/02 (B) 5,000 4,680
St. Paul Port Authority, Energy Park,
Tax Increment (FSA)
5.000%, 02/01/08 2,100 2,119
-------------
10,827
-------------
TRANSPORTATION -- 4.0%
Minneapolis & St. Paul Metropolitan Airports
Commission, Series B (AMT) (AMBAC)
5.500%, 01/01/07 2,140 2,213
Minneapolis & St. Paul Metropolitan Airports
Commission, Series B (AMT) (FGIC)
5.750%, 01/01/10 2,880 3,029
Minneapolis & St. Paul Metropolitan Airports
Commission, Series B,
Callable 01/01/08 @ 101 (AMT) (AMBAC)
5.500%, 01/01/09 2,500 2,587
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 47)
<PAGE>
STATEMENTS OF NET ASSETS SEPTEMBER 30, 2000
MINNESOTA INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Minneapolis & St. Paul Metropolitan Airports
Commission, Series B,
Callable 01/01/09 @ 101 (AMT) (FGIC)
5.625%, 01/01/14 $ 1,000 $ 1,014
Puerto Rico Commonwealth, Highway Transportation
Authority, Series X (MBIA)
5.500%, 07/01/13 1,250 1,318
-------------
10,161
-------------
UTILITIES -- 17.0%
Anoka County Resource Recovery,
Northern States Power
4.400%, 12/01/05 2,300 2,250
Chaska Electric, Series A
5.500%, 10/01/06 610 628
5.550%, 10/01/07 645 665
5.600%, 10/01/08 680 702
5.650%, 10/01/09 720 747
5.650%, 10/01/10 760 788
Minnesota State Public Facilities Authority,
Drinking Water, Series B,
Callable 03/01/09 @ 100
5.125%, 03/01/19 2,000 1,896
Minnesota State Public Facilities Authority, Water
Pollution Control, Series B,
Callable 03/01/01 @ 102
6.350%, 03/01/03 500 514
Northern Minnesota Municipal Power Agency,
Electric Systems (FSA)
5.500%, 01/01/07 2,000 2,078
5.500%, 01/01/08 2,115 2,201
Northern Minnesota Municipal Power Agency,
Electric Systems, Series A (AMBAC)
5.500%, 01/01/03 2,500 2,550
Northern Minnesota Municipal Power Agency,
Electric Systems, Series A,
Pre-refunded 01/01/03 @ 102 (AMBAC)
5.600%, 01/01/04 (A) 1,900 1,977
5.900%, 01/01/07 (A) 1,800 1,885
Southern Minnesota Municipal Power Agency,
Series A, Callable 01/01/03 @ 102 (FGIC)
5.000%, 01/01/06 1,500 1,512
Southern Minnesota Municipal Power Agency,
Series A, Callable 01/01/09 @ 101 (AMBAC)
5.000%, 01/01/11 1,270 1,268
Southern Minnesota Municipal Power Agency,
Series A, Zero Coupon Bond (MBIA)
6.180%, 01/01/20 (B) 3,500 1,157
5.960%, 01/01/21 (B) 5,000 1,552
Southern Minnesota Municipal Power Agency,
Series B (MBIA)
4.850%, 01/01/07 1,875 1,877
St. Paul Sewer, Callable 06/01/03 @ 100 (AMBAC)
5.350%, 12/01/04 3,000 3,055
5.450%, 12/01/05 5,000 5,098
Western Minnesota Municipal Power Agency,
Callable 01/01/03 @ 100 (AMBAC)
6.500%, 01/01/04 1,980 2,029
MINNESOTA INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Western Minnesota Municipal Power Agency,
Series A, Callable 01/01/06 @ 102 (AMBAC)
5.500%, 01/01/11 $ 5,000 $ 5,138
5.500%, 01/01/13 2,000 2,031
-------------
43,598
-------------
TOTAL REVENUE BONDS 137,558
-------------
GENERAL OBLIGATIONS -- 40.0%
Anoka County
5.550%, 02/01/05 2,000 2,023
Anoka County Capital Improvements, Series B
4.550%, 01/01/11 1,960 1,870
Anoka-Hennepin Independent School District #11,
Series C, Callable 02/01/03 @
100 (FGIC) (MSDCEP)
4.875%, 02/01/07 3,300 3,308
Anoka-Hennepin Independent School District #11,
Series A, Callable 02/01/10 @ 100 (MSDCEP)
5.300%, 02/01/12 1,000 1,013
5.375%, 02/01/13 600 607
Becker Tax Increment, Series D, Callable 08/01/04
@ 100 (AMT) (MBIA)
6.000%, 08/01/07 3,955 3,998
Bloomington Independent School District #271,
Callable 02/01/10 @ 100 (MSDCEP)
5.250%, 02/01/11 1,000 1,017
Burnsville Independent School District #191 (MSDCEP)
5.000%, 02/01/08 640 649
Burnsville Independent School District #191,
Callable 02/01/08 @ 100 (MSDCEP)
5.000%, 02/01/09 1,225 1,237
Chaska Independent School District #112,
Series A (MSDCEP)
4.600%, 02/01/07 1,000 992
4.800%, 02/01/10 2,220 2,201
Dakota County Capital Improvements, Series C
4.850%, 02/01/10 1,000 997
Eden Prairie Water & Sewer, Series A,
Zero Coupon Bond
4.700%, 12/01/06 (B) 2,090 1,545
Fridley School District #14, Callable 02/01/05
@ 100 (FSA)
5.350%, 02/01/26 5,000 4,790
Hastings Independent School District #200,
Series A, Callable 02/01/08 @ 100 (MSDCEP)
5.000%, 02/01/11 1,095 1,092
Lakeville Independent School District #194,
Callable 02/01/09 @ 100 (MSDCEP)
5.000%, 02/01/16 2,500 2,371
Lakeville Independent School District #194,
Series A, Callable 02/01/08 @ 100 (MSDCEP)
5.125%, 02/01/22 6,000 5,585
Minneapolis, Series B, Callable 09/01/05 @ 100
5.050%, 03/01/06 6,000 6,125
Minneapolis, Series C, Pre-refunded 03/01/02
@ 100
6.250%, 03/01/03 (A) 1,000 1,024
6.350%, 03/01/04 (A) 1,200 1,231
The accompanying notes are an integral part of the financial statements.
(48 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
MINNESOTA INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Minneapolis, Series C, Callable 04/01/02 @ 102
6.150%, 10/01/05 $ 2,400 $ 2,500
Minneapolis School District #1,
Callable 02/01/06 @ 100 (MSDCEP)
5.000%, 02/01/07 1,000 1,013
5.000%, 02/01/07 1,025 1,038
Minneapolis School District #1 (MSDCEP)
4.500%, 02/01/08 1,450 1,423
Minneapolis & St. Paul Metropolitan Airports
Commission, Series 8,
Callable 01/01/02 @ 100 (AMT)
6.100%, 01/01/03 1,500 1,528
6.350%, 01/01/04 2,500 2,552
Minnesota State, Callable 08/01/07 @ 100
4.800%, 08/01/11 2,710 2,681
4.850%, 08/01/12 4,920 4,841
Mounds View Independent School District #621,
Series A (MSDCEP)
5.250%, 02/01/10 1,230 1,262
Mounds View Independent School District #621,
Series A, Callable 02/01/11 @ 100 (MSDCEP)
5.250%, 02/01/12 1,000 1,010
North St. Paul Independent School District #622,
Series A, Callable 02/01/07 @100 (MSDCEP)
5.125%, 02/01/25 2,000 1,847
Olmsted County Resource Recovery, Series A,
Callable 02/01/02 @ 100
5.800%, 02/01/04 1,850 1,877
Osseo Independent School District #279,
Callable 02/01/03 @ 100 (FGIC)
5.400%, 02/01/05 1,525 1,550
Pipestone-Jasper Independent School District
#2689, Callable 3/01/09 @100 (FGIC)
5.400%, 03/01/13 1,095 1,114
Puerto Rico Commonwealth (MBIA)
6.000%, 07/01/14 1,605 1,765
Red Wing Independent School District #256,
Series A, Callable 02/01/03 @ 100
5.250%, 02/01/05 1,010 1,021
Richfield Independent School District #280 (FGIC)
4.550%, 02/01/03 4,550 4,536
Robbinsdale Independent School District #281
(MSDCEP)
5.000%, 02/01/08 1,000 1,013
Rosemount Independent School District #196,
Series A, Callable 06/01/04 @ 100
5.625%, 06/01/07 1,400 1,446
Rosemount Independent School District #196,
Series A, Callable 06/01/08 @ 100 (MSDCEP)
4.375%, 06/01/10 1,930 1,827
Sauk Rapids Independent School District #47,
Series B, Zero Coupon Bond,
Callable 02/01/11 @ 94.626 (FSA)
5.570%, 02/01/12 (B) 1,790 973
Sauk Rapids Independent School District #47,
Series B, Zero Coupon Bond,
Callable 02/01/11 @ 89.368 (FSA)
5.700%, 02/01/13 (B) 1,055 536
Savage, Series A (FGIC)
5.200%, 02/01/05 1,000 1,022
Savage, Series A, Callable 02/01/06 @ 100 (FGIC)
5.350%, 02/01/07 1,000 1,029
5.500%, 02/01/08 1,000 1,033
MINNESOTA INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
St. Cloud, Series A
6.000%, 08/01/02 $ 1,000 $ 1,019
St. Louis Park Independent School District #283,
Callable 02/01/01 @ 100
5.900%, 02/01/04 1,000 1,005
St. Louis Park Independent School District #283,
Callable 02/01/09 @ 100 (MSDCEP)
5.250%, 02/01/10 1,500 1,535
5.600%, 02/01/15 725 736
St. Paul Independent School District #625, Series B,
Callable 02/01/04 @ 100
5.800%, 02/01/07 1,000 1,031
St. Paul Independent School District #625,
Series C (MLO)
5.850%, 02/01/07 1,000 1,034
Stillwater Independent School District #834,
Callable 02/01/02 @ 100 (FGIC)
5.200%, 02/01/03 2,500 2,520
Stillwater Independent School District #834,
Callable 02/01/09 @100 (MSDCEP)
4.750%, 02/01/11 2,140 2,087
Virgin Islands Special Tax, Pre-refunded 10/01/01
@102
7.750%, 10/01/06 (A) 300 313
Washington County, Raymie Johnson Apartments,
Series C (FGIC)
6.000%, 01/01/10 1,340 1,387
West St. Paul Independent School District #197,
Zero Coupon Bond (MBIA)
5.900%, 02/01/05 (B) 2,000 1,627
Willmar Independent School District #347, Series A,
Callable 02/01/06 @ 100 (MSDCEP)
5.150%, 02/01/09 1,160 1,177
Willmar Independent School District #347, Series C,
Pre-refunded 02/01/02 @ 100 (AMBAC)
6.150%, 02/01/09 (A) 1,000 1,021
-------------
102,604
-------------
CERTIFICATES OF PARTICIPATION -- 5.1%
Hennepin County Lease Revenue (MLO)
4.650%, 11/15/08 1,275 1,259
Hennepin County Lease Revenue,
Callable 11/15/08 @ 100 (MLO)
5.375%, 11/15/09 2,280 2,353
Minneapolis Special School District #1, Series A (MLO)
4.375%, 02/01/07 1,000 975
Minneapolis Special School District #1, Series A,
Callable 02/01/06 @ 100 (MBIA) (MLO)
5.900%, 02/01/11 2,150 2,237
Minneapolis Special School District #1, Series B,
Callable 02/01/03 @ 100 (AMBAC) (MLO)
5.400%, 02/01/04 2,000 2,035
5.500%, 02/01/05 2,000 2,037
St. Cloud Law Enforcement Center,
Pre-refunded 02/01/01 @ 100 (MLO)
5.750%, 02/01/02 (A) 1,000 1,004
St. Paul Science Museum, Escrowed to Maturity (MLO)
7.500%, 12/15/01 226 230
Washington County Housing & Redevelopment
Authority, Jail Facility, Escrowed To Maturity (MLO)
6.500%, 02/01/01 1,000 1,007
-------------
13,137
-------------
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 49)
<PAGE>
STATEMENTS OF NET ASSETS SEPTEMBER 30, 2000
MINNESOTA INTERMEDIATE TAX FREE FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000)
--------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $251,018) $253,299
-------------
MONEY MARKET FUND -- 0.4%
Federated Minnesota Municipal Cash Trust 1,064,042 1,064
-------------
TOTAL MONEY MARKET FUND
(Cost $1,064) 1,064
-------------
TOTAL INVESTMENTS -- 99.0%
(Cost $252,082) 254,363
-------------
OTHER ASSETS AND LIABILITIES, NET -- 1.0% 2,459
-------------
NET ASSETS:
Portfolio Capital--Class A ($.0001 par value--
2 billion authorized) based on 1,272,863
outstanding shares $ 12,844
Portfolio Capital--Class Y ($.0001 par value--
2 billion authorized) based on 25,030,639
outstanding shares 242,249
Undistributed net investment income 29
Accumulated net realized loss on investments (581)
Net unrealized appreciation of investments 2,281
-------------
TOTAL NET ASSETS -- 100.0% $ 256,822
-------------
Net asset value and redemption price per share -- Class A $ 9.80
Maximum sales charge of 2.50% (C) 0.25
-------------
Offering price per share -- Class A $ 10.05
-------------
Net asset value, offering price, and redemption
price per share -- Class Y $ 9.76
-------------
(A) Pre-refunded issues are typically backed by U.S. Government obligations or
municipal bonds. These bonds mature at the call date and price indicated.
(B) The rate shown is the effective yield at the time of purchase.
(C) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 2.50%.
ACA--American Capital Access
AMBAC--American Municipal Bond Assurance Corporation
AMT--Alternative Minimum Tax. As of September 30, 2000, the aggregate market
value of securities subject to the AMT was $24,516,000 which represents
9.6% of net assets.
CGIC--Capital Guaranty Insurance Company
FGIC--Financial Guaranty Insurance Corporation
FHA--Federal Housing Authority
FNMA--Federal National Mortage Association
FSA--Financial Security Assurance
GNMA--Government National Mortgage Association
MBIA--Municipal Bond Insurance Association
MLO--Municipal Lease Obligation
MSDCEP--Minnesota School District Credit Enhancement Program
VA--Veterans Administration
MINNESOTA TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
MUNICIPAL BONDS -- 97.9%
REVENUE BONDS -- 70.6%
AUTHORITY -- 2.2%
Minnesota Agricultural & Economic Development Board,
Series B, Callable 08/01/08 @ 102
7.250%, 08/01/20 $ 1,000 $ 1,025
St. Paul Port Authority, Radisson Kellogg Project,
Series 2, Callable 08/01/08 @ 103
7.375%, 08/01/29 2,000 1,956
-------------
2,981
-------------
BUILDING -- 0.9%
Hastings Housing & Redevelopment Authority,
Cross-over refunded 02/01/03 @ 100 (MLO)
6.500%, 02/01/14 (A) 1,000 1,042
Washington County, Housing & Redevelopment
Authority, Jail Facility
5.000%, 02/01/03 255 258
-------------
1,300
-------------
ECONOMIC DEVELOPMENT -- 7.2%
Minnesota Agricultural & Economic Development
Board, Evangelical Lutheran Project,
Callable 12/01/08 @ 102 (AMBAC)
5.000%, 12/01/15 900 861
Minnesota Agricultural & Economic Development
Board, Evangelical Lutheran Project,
Callable 08/01/10 @ 102
6.625%, 08/01/25 1,500 1,485
Minnesota Agricultural & Economic Development
Board, Health Care System, Series A,
Callable 11/15/10 @ 101
6.375%, 11/15/29 5,000 5,069
Minnesota Agricultural & Economic Development
Board, Small Business Development, Series C,
Callable 08/01/08 @ 102 (AMT)
7.250%, 08/01/20 1,385 1,395
Minnesota Agricultural & Economic Development
Board, Small Business Development, Series D,
Callable 08/01/08 @ 102 (AMT)
7.250%, 08/01/20 1,120 1,105
-------------
9,915
-------------
EDUCATION -- 6.8%
Minneapolis Gateway Project, Callable 12/01/07 @ 100
5.250%, 12/01/17 1,000 968
Minnesota State Higher Education Facilities Authority,
Augsburg College, Series 4-F1,
Callable 05/01/06 @ 102
6.250%, 05/01/23 1,500 1,506
Minnesota State Higher Education Facilities Authority,
Carleton College, Callable 05/01/06 @ 100
5.750%, 11/01/12 1,050 1,082
Minnesota State Higher Education Facilities Authority,
Carleton College, Callable 11/01/07 @ 100
5.400%, 11/01/15 1,500 1,500
The accompanying notes are an integral part of the financial statements.
(50 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
MINNESOTA TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Minnesota State Higher Education Facilities Authority,
College of Art & Design, Series 5-D,
Callable 5/01/10 @ 100
6.625%, 05/01/20 $ 1,000 $ 1,014
Minnesota State Higher Education Facilities Authority,
College of St. Benedict,
Callable 03/01/04 @ 100
6.200%, 03/01/14 245 250
6.375%, 03/01/20 140 142
Minnesota State Higher Education Facilities Authority,
College of St. Benedict,
Pre-refunded 03/01/04 @ 100
6.200%, 03/01/14 (A) 655 686
6.375%, 03/01/20 (A) 360 379
Minnesota State Higher Education Facilities Authority,
St. John's University, Callable 10/01/07 @ 100
5.350%, 10/01/17 500 482
Minnesota State Higher Education Facilities Authority,
University of St. Thomas, Series 4-A1,
Callable 10/01/06 @ 100
5.625%, 10/01/21 500 492
Minnesota State Higher Education Facilities Authority,
Vermillion Community College,
Callable 01/01/04 @ 102
5.750%, 01/01/13 750 766
-------------
9,267
-------------
HEALTHCARE -- 16.9%
Brooklyn Center Health Care Facility,
Callable 12/01/03 @ 102
7.600%, 12/01/18 900 808
Chisago Health Facilities Authority,
Callable 07/01/05 @ 102
7.300%, 07/01/25 400 403
Cuyana Range Hospital District, Series A,
Callable 06/01/07 @ 102
6.000%, 06/01/29 3,000 2,466
Duluth Economic Development Authority,
Health Care Facilities,
Pre-refunded 11/01/02 @ 100 (AMBAC)
6.300%, 11/01/22 (A) 145 153
Fergus Falls Health Care Facilities Authority, Series A,
Callable 11/01/04 @ 102
7.000%, 11/01/19 1,000 954
Glencoe Health Care Facilities,
Pre-refunded 12/01/00 @ 100
8.500%, 12/01/15 (A) 575 579
Glencoe Hospital Board, Callable 08/01/04 @ 102
6.750%, 04/01/16 1,100 1,034
Golden Valley, Covenant Retirement Communities,
Series A, Callable 12/01/09 @ 101
5.500%, 12/01/29 1,750 1,528
Litchfield Health Care Facilities,
Pre-refunded 08/01/01 @ 102
8.750%, 08/01/20 (A) 500 527
Minneapolis & St. Paul Housing & Redevelopment
Authority, Series A (FSA)
5.600%, 08/15/12 250 256
MINNESOTA TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Minneapolis Nursing Home Revenue,
Pre-refunded 05/01/01 @ 100
8.000%, 05/01/21 (A) $ 250 $ 255
Minnesota Agricultural & Economic Development
Board, Benedictine Health, Series A,
Callable 02/15/10 @ 102 (MBIA)
5.250%, 02/15/15 2,000 1,962
Minnesota Agricultural & Economic Development
Board, Fairview Hospital Project, Series A,
Callable 11/15/07 @ 102 (MBIA)
5.500%, 11/15/11 500 516
5.500%, 11/15/17 1,000 992
Monticello, Big Lake Community Hospital,
Callable 12/01/09 @ 100
5.750%, 12/01/19 1,000 821
Monticello, Big Lake Community Hospital, Series A
4.700%, 12/01/03 125 121
New Hope, Housing & Healthcare Facilities Authority
4.400%, 03/01/01 540 537
4.600%, 03/01/02 700 688
Olmstead County, Hiawatha Homes Project,
Callable 07/01/03 @ 102
6.500%, 07/01/16 205 188
Rochester Health Care Facilities Authority,
Mayo Foundation, Series A,
Callable 05/15/08 @ 101
5.500%, 11/15/27 4,000 3,866
Roseau Area Hospital District,
Callable 10/01/01 @ 100
7.200%, 10/01/11 230 231
7.200%, 10/01/12 250 251
7.200%, 10/01/13 250 251
St. Cloud Health Care, St. Cloud Hospital Obligation
Group, Series A, Callable 05/01/10 @ 101
5.750%, 05/01/26 2,500 2,500
St. Paul Housing & Redevelopment Authority,
Callable 05/15/09 @ 100
5.250%, 05/15/18 1,000 845
Worthington, Series A, Callable 12/01/02 @ 100
6.500%, 12/01/10 380 369
-------------
23,101
-------------
HOUSING -- 16.8%
Austin Housing & Redevelopment Authority,
Callable 01/01/06 @ 102
7.250%, 01/01/26 500 511
Coon Rapids Multifamily Housing, Margaret Place,
Callable 11/01/07 @ 102
6.250%, 05/01/18 500 470
Coon Rapids Multifamily Housing, Woodland North
Apartments, Callable 12/01/03 @ 100 (FHA)
5.625%, 12/01/09 825 829
Dakota County Housing & Redevelopment Authority,
Callable 09/01/01 @ 100 (GNMA)
8.100%, 09/01/12 200 202
Eden Prairie Multifamily Housing, Lincoln Park Project,
Series A-1, Callable 07/20/10 @ 103.5 (GNMA)
6.400%, 07/20/20 (B) 1,000 1,025
Eden Prairie Multifamily Housing, Parkway Apartments
Project, Series A, Callable 02/20/07 @ 104
5.700%, 08/20/22 (B) 1,000 994
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 51)
<PAGE>
STATEMENTS OF NET ASSETS SEPTEMBER 30, 2000
MINNESOTA TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Fairmont Senior Housing Mortgage,
Callable 07/01/02 @ 102
8.500%, 07/01/15 $ 900 $ 928
Hopkins Elderly Housing, Series A (GNMA)
5.600%, 11/20/17 500 489
Hopkins, Multifamily Housing Renaissance Project,
Callable 04/01/07 @102
6.250%, 04/01/15 500 509
Maple Grove Multifamily Housing (WF)
4.100%, 11/01/31 (C) 200 200
Minneapolis Multifamily Housing, Churchill Project,
Callable 10/01/11 @ 102 (FHA)
7.050%, 10/01/22 750 776
Minneapolis Multifamily Housing, Seward Towers
Project, Callable 12/20/01 @ 101 (GNMA)
7.375%, 12/20/30 1,370 1,402
Minneapolis Multifamily Housing, Trinity Housing
Project, Callable 02/01/01 @ 102
7.875%, 02/01/06 185 191
8.250%, 02/01/18 2,625 2,708
Minnesota State Housing Development Service,
Callable 02/01/02 @ 102
7.050%, 08/01/27 500 519
Minnesota State Housing Finance Agency, Single
Family Mortgage, Series C,
Callable 07/01/09 @ 100 (AMT)
6.100%, 07/01/30 1,000 1,011
Moorhead Economic Development Authority,
Series B, Callable 06/01/04 @ 102
6.000%, 06/01/29 1,900 1,556
Roseville Housing Facilities Authority,
Pre-refunded 10/01/03 @ 102
7.125%, 10/01/13 (A) 2,000 2,168
St. Anthony Housing & Redevelopment Authority,
Callable 05/20/06 @ 102 (GNMA) (FHA)
6.250%, 11/20/25 1,500 1,522
St. Cloud Housing & Redevelopment Authority,
Pre-refunded 12/01/00 @ 102
7.500%, 12/01/18 (A) 500 512
St. Louis Park Multifamily Housing (GNMA)
5.250%, 11/01/20 500 459
St. Louis Park Multifamily Housing,
Callable 12/01/05 @ 102 (FHA)
6.250%, 12/01/28 500 507
St. Paul Housing & Redevelopment Authority,
Como Lake Project, Series B,
Callable 03/01/01 @ 100 (FHA)
7.500%, 03/01/26 (D) 1,500 1,467
Washington County, Housing & Redevelopment
Authority, Briar Pond Project,
Callable 08/20/09 @ 100
5.600%, 08/20/34 1,000 942
White Bear Lake, Lake Square Housing, Series A,
Callable 02/01/07 @ 102 (FHA)
6.000%, 08/01/20 1,020 1,033
-------------
22,930
-------------
MINNESOTA TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
IMPROVEMENTS -- 5.2%
Minnesota State Retirement Systems Building,
Callable 06/01/10 @ 100
5.875%, 06/01/27 $ 7,000 $ 7,182
-------------
INDUSTRIAL DEVELOPMENT -- 1.4%
Little Canada Commercial Development,
Callable 04/01/03 @ 100 (MLO)
7.100%, 04/01/13 1,580 1,590
Shakopee Commercial Development
6.750%, 12/01/00 15 15
Shakopee Commercial Development,
Callable 12/01/00 @ 101
7.000%, 06/01/01 15 15
7.000%, 12/01/01 15 15
7.250%, 06/01/02 15 15
7.250%, 12/01/02 15 15
7.350%, 06/01/03 15 15
7.350%, 12/01/03 15 15
7.350%, 06/01/04 15 15
7.350%, 12/01/04 20 20
7.500%, 06/01/05 15 15
7.500%, 12/01/05 20 20
7.500%, 06/01/06 20 20
7.500%, 12/01/06 20 20
7.500%, 06/01/07 20 20
7.500%, 12/01/07 25 25
7.500%, 06/01/08 20 20
7.500%, 12/01/08 25 25
-------------
1,895
-------------
POLLUTION CONTROL -- 0.6%
Minnesota State Public Facilities Authority, Water
Pollution Control, Callable 03/01/08 @ 100
4.750%, 03/01/18 1,000 897
-------------
RECREATIONAL AUTHORITY -- 1.0%
Moorhead, Series A,
Pre-refunded 12/01/01 @ 100
7.750%, 12/01/15 (A) 1,165 1,208
Moorhead, Series B
5.000%, 12/01/02 125 124
-------------
1,332
-------------
SCHOOL DISTRICT -- 3.2%
Golden Valley Breck School, Callable 10/01/09 @ 100
5.750%, 10/01/14 1,000 1,026
South Washington County Independent School District
#833, Callable 12/01/06 @ 100 (MLO) (COP)
5.250%, 12/01/14 500 494
Victoria Private School Facility, Holy Family Catholic
High School, Series A, Callable 09/01/09 @ 100
5.850%, 09/01/24 2,000 1,890
5.875%, 09/01/29 1,000 940
-------------
4,350
-------------
The accompanying notes are an integral part of the financial statements.
(52 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
MINNESOTA TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
TAX REVENUE -- 0.3%
Duluth Economic Development Authority
8.000%, 08/01/08 $ 325 $ 373
-------------
TRANSPORTATION -- 2.2%
Minneapolis & St. Paul Metropolitan Airports
Commission, Series A,
Callable 01/01/10 @ 101 (FGIC)
5.750%, 01/01/32 3,000 3,014
-------------
UTILITIES -- 5.9%
Chaska Electric, Series A, Callable 10/01/10 @ 100
6.100%, 10/01/30 5,000 5,033
Southern Minnesota Municipal Power Agency,
Series A, Callable 01/01/03 @ 102 (MBIA)
5.000%, 01/01/12 1,000 981
Southern Minnesota Municipal Power Agency, Series A,
Pre-refunded 07/01/16 @ 100 (MBIA)
5.750%, 01/01/18 (A) 850 879
Southern Minnesota Municipal Power Agency,
Series A, Zero Coupon Bond (MBIA)
5.990%, 01/01/27 (E) 3,000 647
Western Minnesota Municipal Power Agency,
Callable 01/01/01 @ 100 (MBIA)
9.750%, 01/01/16 410 594
-------------
8,134
-------------
TOTAL REVENUE BONDS 96,671
-------------
GENERAL OBLIGATIONS -- 24.7%
Anoka-Hennepin Independent School District #11,
Series A, Callable 02/01/10 @ 100 (FSA)
5.750%, 02/01/17 1,000 1,024
Becker Independent School District #726, Series A,
Callable 02/01/10 @ 100 (FSA)
6.000%, 02/01/21 1,000 1,049
Bloomington Independent School District #271,
Series B, Callable 02/01/10 @ 100 (FSA)
5.000%, 02/01/20 1,000 923
Burnsville Independent School District #191,
Series A, Callable 02/01/06 @ 100
4.875%, 02/01/13 1,450 1,388
Chaska Independent School District #112, Series B,
Cross-over refunded 02/01/06 @ 100
5.875%, 02/01/11 (A) 1,000 1,054
6.000%, 02/01/16 (A) 5,525 5,855
Columbia Heights Independent School District #13,
Callable 02/01/07 @ 100
5.250%, 02/01/15 1,000 987
Delano Independent School District #879,
Callable 02/01/11 @ 100 (FSA)
5.875%, 02/01/25 1,000 1,028
Hennepin County, Series C
4.000%, 12/01/10 (C) 800 800
Lakeville Independent School District #194,
Callable 02/01/09 @ 100
5.000%, 02/01/17 1,000 940
MINNESOTA TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000)/SHARES VALUE (000)
--------------------------------------------------------------------------------
Minneapolis Sports Arena, Callable 09/01/05 @ 100
5.200%, 03/01/13 $ 400 $ 402
Minneapolis Sports Arena, Callable 04/01/08 @ 100
5.100%, 04/01/13 500 498
5.100%, 10/01/13 250 249
North St. Paul Independent School District #622,
Callable 05/01/06 @ 100
5.850%, 05/01/17 500 510
Osseo Independent School District #279, Series A,
Callable 02/01/04 @ 100
4.150%, 02/01/14 (F) 3,195 3,243
Sauk Rapids Independent School District #47,
Series A, Callable 02/01/11 @ 100 (MBIA)
5.750%, 02/01/23 2,000 2,019
Shakopee Independent School District #7,
Callable 02/01/08 @ 100
4.625%, 02/01/16 2,250 2,005
South Washington County Independent School District
#833, Callable 06/01/05 @ 100 (MLO)
5.850%, 06/01/15 500 511
St. Cloud, Series A, Cross-over refunded 02/01/02
@ 100
7.950%, 08/01/13 (A) (F) 5,200 5,350
St. Louis Park Independent School District #283,
Callable 02/01/09 @ 100 (MSDCEP)
5.700%, 02/01/17 2,000 2,034
Wayzata Independent School District #284, Series A,
Callable 02/01/07 @ 100
5.500%, 02/01/17 2,000 2,002
-------------
33,871
-------------
CERTIFICATES OF PARTICIPATION -- 2.6%
Hennepin County, Series A, Pre-refunded
11/15/01 @ 100 (MLO)
6.650%, 11/15/08 (A) 1,000 1,025
6.750%, 11/15/11 (A) 575 590
6.800%, 11/15/17 (A) 1,750 1,796
-------------
3,411
-------------
TOTAL MUNICIPAL BONDS
(Cost $132,073) 133,953
-------------
CLOSED-END INVESTMENT COMPANIES -- 1.6%
Voyageur Minnesota Municipal Income II 119,500 1,583
Voyageur Minnesota Municipal Income III 52,100 655
-------------
TOTAL CLOSED-END INVESTMENT COMPANIES
(Cost $2,386) 2,238
-------------
MONEY MARKET FUND -- 0.3%
Federated Minnesota Municipal Cash Trust 394,280 394
-------------
TOTAL MONEY MARKET FUND
(Cost $394) 394
-------------
TOTAL INVESTMENTS -- 99.8%
(Cost $134,853) 136,585
-------------
OTHER ASSETS AND LIABILITIES, NET -- 0.2% 307
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 53)
<PAGE>
STATEMENTS OF NET ASSETS SEPTEMBER 30, 2000
MINNESOTA TAX FREE FUND (CONCLUDED)
DESCRIPTION VALUE (000)
--------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital--Class A ($.0001 par value--
2 billion authorized) based on 8,833,481
outstanding shares $ 91,825
Portfolio Capital--Class C ($.0001 par value--
2 billion authorized) based on 191,773
outstanding shares 2,113
Portfolio Capital--Class Y ($.0001 par value--
2 billion authorized) based on 3,844,460
outstanding shares 41,473
Undistributed net investment income 250
Accumulated net realized loss on investments (501)
Net unrealized appreciation of investments 1,732
-------------
TOTAL NET ASSETS -- 100.0% $ 136,892
-------------
Net asset value and redemption price per share -- Class A $ 10.64
Maximum sales charge of 2.50% (G) 0.27
-------------
Offering price per share -- Class A $ 10.91
-------------
Net asset value and redemption price per share -- Class C (H) $ 10.62
Maximum sales charge of 1.00% (I) 0.11
-------------
Offering price per share -- Class C $ 10.73
-------------
Net asset value, offering price, and redemption
price per share -- Class Y $ 10.63
-------------
(A) Pre-refunded issues are typically backed by U.S. Government obligations or
municipal bonds. Cross-over refunded issues are backed by the credit of the
refunding issuer. In both cases, the bonds mature at the call date and price
indicated.
(B) At September 30, 2000, the cost of securities purchased on a when issued
basis was: Eden Prarie Multifamily Housing, Parkway Apartments Project,
Series A, of $1,000,000 and Eden Prairie Multifamily Housing, Lincoln Park
Project, Series A-1, of $1,000,000.
(C) Variable Rate Security-- the rate shown is the rate in effect as of
September 30, 2000.
(D) Security currently in partial default and is only 93.5% guaranteed. The
effective interest rate is 7.013%.
(E) The rate shown is the effective yield at the time of purchase.
(F) Inverse Floating Rate Security-security pays interest at rates that increase
(decrease) in the same magnitude as, or in a multiple of, a decrease
(increase) in the market rate.
(G) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 2.50%.
(H) Class C has a contingent deferred sales charge. For a description of a
possible redemption charge, see the notes to the financial statements.
(I) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%.
AMBAC--American Municipal Bond Assurance Corporation
AMT--Alternative Minimum Tax. As of September 30, 2000, the aggregate market
value of securities subject to the AMT was $3,511,000, which represents
2.6% of net assets.
COP--Certificates of Participation
FGIC--Financial Guaranty Insurance Corporation
FHA--Federal Housing Authority
FSA--Financial Security Assurance
GNMA--Government National Mortgage Association
MBIA--Municipal Bond Insurance Association
MLO--Municipal Lease Obligation
MSDCEP--Minnesota School District Credit Enhancement Program
WF--Wells Fargo
OREGON INTERMEDIATE TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
MUNICIPAL BONDS -- 98.3%
GENERAL OBLIGATIONS -- 46.9%
Beaverton Limited Tax, Series B,
Callable 04/01/02 @ 100
5.000%, 04/01/03 $ 900 $ 906
Chemeketa Community College, Pre-refunded
06/01/06 @ 100 (FGIC)
5.650%, 06/01/09 (A) 1,000 1,050
Chemeketa Oregon Community College (FGIC)
5.500%, 06/01/13 2,170 2,246
Clackamas & Washington Counties Joint School
District #3, Pre-refunded 08/01/02 @ 100
5.600%, 08/01/03 (A) 1,000 1,020
Clackamas & Washington Counties Joint School
District #3, Callable 10/01/02 @ 101
5.650%, 10/01/05 235 242
Clackamas & Washington Counties Joint School
District #3, Callable 06/01/07 @ 100 (FGIC)
5.000%, 06/01/16 1,000 958
Clackamas County Limited Tax Assessment,
Callable 05/01/01 @ 100
6.000%, 05/01/10 1,000 1,000
Clackamas County School District #12,
North Clackamas, Callable 06/01/03 @ 101
4.650%, 06/01/05 1,025 1,026
Clackamas County School District #12,
North Clackamas,
Callable 06/01/09 @ 100 (FGIC)
5.250%, 06/01/12 2,000 2,028
Clackamas County School District #86, Canby,
Callable 06/15/10 @ 100 (SBG)
5.500%, 06/15/15 1,835 1,854
Columbia River Peoples Utility District,
Callable 06/01/06 @ 100 (AMBAC)
4.375%, 06/01/07 1,245 1,215
Deschutes & Jefferson Counties School District #2,
Redmond, Callable 06/01/03 @ 100 (MBIA)
5.400%, 06/01/05 1,000 1,021
Deschutes County, Callable 12/01/06 @ 100 (MBIA)
5.250%, 12/01/09 1,000 1,025
Eugene Public Safety Facilities,
Callable 06/01/06 @ 100 (FGIC)
5.700%, 06/01/16 1,295 1,319
Josephine County School District #7 (FGIC)
5.750%, 06/01/06 1,525 1,611
Lane County School District #40, Creswell,
Callable 06/15/10 @ 100 (SBG)
5.000%, 06/15/11 1,120 1,122
Lane County School District #52, Bethel,
Callable 06/15/10 @ 100 (SBG)
5.350%, 06/15/11 1,285 1,320
Lincoln City, Callable 01/01/01 @ 100 (AMBAC)
5.750%, 07/01/01 500 502
Lincoln City, Callable 02/01/01 @ 100 (AMBAC)
5.000%, 02/01/03 305 306
Lincoln County School District (FGIC)
6.000%, 06/15/06 1,055 1,126
The accompanying notes are an integral part of the financial statements.
(54 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
OREGON INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Marion & Polk Counties School District #24-J, Salem,
Pre-refunded 10/01/02 @ 100
5.600%, 10/01/04 (A) $ 635 $ 649
5.700%, 10/01/05 (A) 660 676
5.800%, 10/01/06 (A) 715 733
Marion County School District #7-J, Silverton,
Callable 06/01/04 @ 101 (FSA)
5.600%, 06/01/06 860 896
Metropolitan Open Spaces Program, Series A,
Callable 09/01/03 @ 102
5.000%, 09/01/04 1,025 1,040
Metropolitan Service District,
Oregon Convention Center Project, Series A,
Callable 01/01/01 @ 101
6.000%, 07/01/02 1,300 1,318
6.250%, 01/01/13 500 507
Metropolitan, Washington Park Zoo, Series A
6.000%, 01/15/05 1,215 1,280
Metropolitan, Washington Park Zoo, Series A,
Callable 01/15/07 @ 100
5.250%, 01/15/10 1,000 1,020
Morrow County School District #1 (MBIA)
5.500%, 06/01/04 795 822
5.500%, 06/01/05 835 868
Multnomah County, Callable 04/01/10 @ 100
5.000%, 04/01/11 1,000 1,001
Multnomah County, Callable 04/01/09 @ 100
4.300%, 10/01/11 1,615 1,488
4.500%, 10/01/13 2,000 1,828
Multnomah County School District #3, Park Rose,
Callable 12/01/05 @ 100 (FGIC)
5.600%, 12/01/07 780 811
Multnomah County School District #4, Gresham
5.500%, 01/01/02 910 921
Multnomah County School District #4, Gresham,
Pre-refunded 01/01/02 @ 100
5.800%, 01/01/04 (A) 1,400 1,422
Multnomah County School District #7,
Reynolds (AMBAC)
5.500%, 06/01/06 1,000 1,042
Multnomah County School District #40
5.250%, 06/01/04 1,000 1,022
Oregon State
6.000%, 08/01/02 2,100 2,158
6.000%, 02/01/03 1,000 1,034
Oregon State Alternative Energy, Private Act,
Callable 07/01/04 @ 100
5.300%, 07/01/05 900 920
Oregon State Board of Higher Education, Series A,
Callable 08/01/09 @ 101
5.500%, 08/01/15 1,255 1,272
Oregon State Board of Higher Education, Series B,
Callable 10/15/02 @ 100
6.250%, 10/15/12 1,375 1,415
Oregon State Pollution Control, Series A,
Callable 11/01/07 @ 100
4.875%, 11/01/11 455 454
Oregon State Pollution Control, Series C,
Callable 06/01/03 @ 100
5.625%, 06/01/13 195 197
Polk, Marion & Benton Counties School
District #13-J (FGIC)
5.500%, 12/01/03 955 985
OREGON INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Polk, Marion & Benton Counties School District #13-J,
Callable 12/01/04 @ 101 (FGIC)
5.500%, 12/01/05 $ 570 $ 595
Port Portland, Series A
4.500%, 03/01/06 1,000 994
Portland Community College District, Series A,
Pre-refunded 07/01/02 @ 100
6.000%, 07/01/12 (A) 1,500 1,538
Portland Emergency Facilities, Series A,
Callable 06/01/09 @ 100
5.000%, 06/01/12 1,060 1,058
Salem-Keizer School District #24-J,
Callable 06/01/08 @ 100 (FSA)
5.100%, 06/01/12 2,000 2,007
Salem-Keizer School District #24-J,
Callable 06/01/09 @ 100 (SBG)
5.250%, 06/01/12 1,000 1,011
Tri-County Metropolitan Transportation District,
Light Rail Extension, Series A,
Pre-refunded 07/01/02 @ 101
5.800%, 07/01/05 (A) 1,310 1,352
Tri-County Metropolitan Transportation District,
Light Rail Extension, Series A,
Callable 07/01/09 @ 101
5.250%, 07/01/10 1,115 1,147
5.250%, 07/01/12 1,000 1,011
Tualatin Hills Park & Recreational District (FGIC)
5.750%, 03/01/13 870 921
Washington & Clackamas Counties School District
#23-J, Tigard (FGIC)
5.750%, 06/01/06 1,055 1,114
Washington & Clackamas Counties School District
#23-J, Tigard, Zero Coupon Bond
4.700%, 06/01/11 (B) 435 249
5.820%, 06/15/14 (B) 1,030 489
Washington County Criminal Justice Facilities,
Pre-refunded 12/01/04 @ 100
5.625%, 12/01/05 (A) 850 884
6.000%, 12/01/13 (A) 1,000 1,054
Washington County School District #3, Hillsboro (MBIA)
5.750%, 11/01/04 800 837
Washington County School District #15, Forest Grove,
Pre-refunded 06/01/04 @ 101 (FGIC)
5.800%, 06/01/06 (A) 575 604
Washington County School District #48-J, Beaverton,
Callable 08/01/08 @ 100
5.250%, 08/01/10 2,000 2,049
Washington County School District #48-J, Beaverton,
Series B, Callable 12/01/00 @ 100
5.700%, 06/01/02 780 782
Washington County School District #88-J, Sherwood,
Callable 06/01/05 @ 100 (FSA)
5.700%, 06/01/06 1,000 1,045
Washington, Multnomah & Yamhill Counties School
District #1-J, Callable 06/01/09 @ 100
5.250%, 06/01/12 1,185 1,196
Washington, Multnomah & Yamhill Counties School
District #1-J
5.000%, 11/01/14 1,000 981
Wilsonville
7.100%, 01/01/01 200 201
Wilsonville, Callable 01/01/01 @ 100
7.200%, 01/01/02 215 216
7.300%, 01/01/03 235 237
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 55)
<PAGE>
STATEMENTS OF NET ASSETS SEPTEMBER 30, 2000
OREGON INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Wilsonville, Callable 06/01/08 @ 100
5.000%, 12/01/10 $ 1,160 $ 1,152
Yamhill County School District #29-J, Newberg,
Callable 06/01/04 @ 101 (FSA)
5.600%, 06/01/06 630 656
Yamhill County School District #40, McMinnville (FGIC)
6.000%, 06/01/08 600 648
-------------
76,704
-------------
REVENUE BONDS -- 45.4%
BUILDING -- 0.6%
Oregon State Fair & Exposition Center,
Callable 10/01/01 @ 103 (AG)
5.400%, 10/01/06 1,010 1,033
-------------
EDUCATION -- 5.1%
Multnomah County Educational Facilities,
University of Portland Educational Facilities,
Callable 04/01/07 @ 102 (AMBAC)
5.750%, 04/01/10 2,245 2,381
Multnomah County Educational Facilities,
University of Portland Educational Facilities,
Callable 04/01/10 @ 100
5.700%, 04/01/15 1,000 981
Oregon State Health, Housing, Educational & Cultural
Facilities Authority, George Fox University,
Series A, Callable 03/01/07 @ 102
5.400%, 03/01/09 395 408
5.450%, 03/01/10 415 428
Oregon State Health, Housing, Educational & Cultural
Facilities Authority, Lewis & Clark College (MBIA)
5.250%, 10/01/02 550 558
5.300%, 10/01/03 630 643
Oregon State Health, Housing, Educational & Cultural
Facilities Authority, Reed College, Series A,
Callable 07/01/06 @ 102
5.375%, 07/01/15 2,000 1,979
Salem Educational Facilities, Willamette University
5.500%, 04/01/04 500 515
Salem Educational Facilities, Willamette University,
Callable 04/01/04 @ 101
5.700%, 04/01/05 500 521
-------------
8,414
-------------
HEALTHCARE -- 5.6%
Clackamas County Health Facilities Authority, Series A,
Callable 03/01/02 @ 102 (MBIA)
5.900%, 03/01/03 885 912
Clackamas County Hospital Facilities Authority,
Health Systems, Callable 08/15/09 @ 101
5.250%, 02/15/11 2,000 2,006
5.375%, 02/15/12 1,000 1,005
Clackamas County Hospital Facilities Authority,
Mary's Woods, Series A, Callable 05/15/09 @ 102
6.125%, 05/15/13 1,000 969
OREGON INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Clackamas County Hospital Facilities Authority,
Sisters Providence, Series A,
Callable 04/01/02 @ 102
6.200%, 10/01/02 $ 680 $ 700
Douglas County Hospital Facilities Authority,
Catholic Health, Series B (MBIA)
5.500%, 11/15/04 505 522
Medford Hospital Facilities Authority,
Asante Health Systems,
Callable 08/15/09 @ 100 (MBIA)
5.250%, 08/15/11 1,000 1,016
5.375%, 08/15/12 1,000 1,018
Salem Hospital Facilities Authority,
Callable 08/15/08 @ 101
5.250%, 08/15/14 1,000 979
-------------
9,127
-------------
HOUSING -- 6.5%
Oregon State Housing & Community Services,
Series A, Callable 07/01/03 @ 102
4.900%, 07/01/05 1,075 1,084
5.750%, 07/01/12 2,490 2,497
Oregon State Housing & Community Services,
Series A, Callable 07/01/06 @ 102
6.000%, 07/01/16 1,185 1,214
Oregon State Housing & Community Services,
Series A, Callable 07/01/04 @ 102
6.400%, 07/01/18 965 1,001
Oregon State Housing & Community Services,
Series E, Callable 01/01/10 @ 100
5.750%, 07/01/13 890 914
Portland Housing Authority, Series A,
Callable 01/01/09 @ 100
5.000%, 01/01/19 3,000 2,661
Portland Housing Authority, Riverwood Project,
Pre-refunded 01/01/06 @ 100
6.000%, 01/01/11 (A) 1,170 1,236
-------------
10,607
-------------
IMPROVEMENTS -- 1.9%
Oregon State Department of Administrative Services
Lottery, Series A, Callable 04/01/10 @ 100 (FSA)
5.000%, 04/01/12 1,050 1,046
Oregon State Department of Administrative Services
Lottery, Series B (FSA)
5.250%, 04/01/08 2,000 2,059
-------------
3,105
-------------
MUNICIPAL BOND BANK -- 0.6%
Oregon State Economic Development Department,
Callable 01/01/02 @ 102
4.850%, 01/01/04 555 559
Oregon State Economic Development Department,
Series A, Callable 01/01/06 @ 102 (MBIA)
5.000%, 01/01/11 500 500
-------------
1,059
-------------
The accompanying notes are an integral part of the financial statements.
(56 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
OREGON INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
POLLUTION CONTROL -- 2.1%
Baker County Pollution Control, Ash Grove Cement
West Project, Callable 01/01/01 @ 100 (SBA)
5.850%, 07/01/01 $ 300 $ 301
5.950%, 07/01/02 315 316
6.050%, 07/01/03 335 336
Port of St. Helens Pollution Control,
Portland General Electric
4.800%, 04/01/10 2,500 2,430
-------------
3,383
-------------
TAX REVENUE -- 1.3%
Portland Urban Renewal & Redevelopment,
Convention Center, Series A,
Callable 06/15/10 @ 101 (AMBAC)
5.750%, 06/15/15 1,000 1,036
Tri-County Metropolitan Transportation District,
Series A, Callable 08/01/02 @ 101
5.450%, 08/01/04 1,000 1,023
-------------
2,059
-------------
TRANSPORTATION -- 7.2%
Oregon State Department of Transportation,
Highway User Tax, Callable 11/15/10 @ 100
5.125%, 11/15/14 2,260 2,216
Oregon State Department of Transportation,
Regional Light Rail Fund,
Callable 06/01/04 @ 102 (MBIA)
6.000%, 06/01/05 2,000 2,112
Port Morrow, Callable 06/01/05 @ 100
6.250%, 06/01/15 1,500 1,480
Port Portland Airport, Series 7-A,
Escrowed to Maturity (MBIA)
6.200%, 07/01/01 (A) 500 507
Port Portland Airport, Series 9-A,
Callable 07/01/01 @ 102 (FGIC)
5.400%, 07/01/04 1,775 1,812
Port Portland Airport, Series 12-A,
Callable 01/01/09 @ 101 (FGIC)
5.250%, 07/01/11 1,165 1,185
5.250%, 07/01/12 2,000 2,017
Tri-County Metropolitan Transportation District,
Series 1 (MGT)
4.900%, 06/01/09 500 501
-------------
11,830
-------------
UTILITIES -- 14.5%
Beaverton Water, Callable 06/01/04 @ 100 (FSA)
6.125%, 06/01/14 1,000 1,052
Clackamas County Service District #1,
Callable 10/01/06 @ 100
6.200%, 10/01/09 700 743
Emerald Peoples Utility District (FGIC)
7.200%, 11/01/02 1,235 1,301
Eugene Electric Utilities,
Callable 08/01/06 @ 100 (FSA)
5.375%, 08/01/11 1,195 1,216
Eugene Electric Utilities,
Callable 08/01/07 @ 100 (FSA)
5.000%, 08/01/11 1,305 1,305
OREGON INTERMEDIATE TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Eugene Electric Utilities,
Callable 08/01/08 @ 100 (FSA)
4.800%, 08/01/13 $ 1,190 $ 1,130
Eugene Electric Utilities, Series B,
Callable 02/01/01 @ 100.50 (MBIA)
4.750%, 08/01/12 670 642
4.900%, 08/01/14 475 449
Gresham Sewer, Callable 06/01/02 @ 102
5.250%, 06/01/05 500 510
Marion County Solid Waste & Electric,
Ogden Martin System Project (AMBAC)
5.100%, 10/01/02 1,000 1,012
5.500%, 10/01/06 1,400 1,460
Portland Sewer Systems, Series A,
Callable 06/01/07 @ 100 (FGIC)
5.000%, 06/01/09 2,250 2,277
5.000%, 06/01/15 2,000 1,925
Portland Sewer Systems, Series B,
Callable 04/01/02 @ 102 (FGIC)
5.500%, 04/01/04 600 618
Salem Water & Sewer (MBIA)
6.000%, 06/01/06 1,135 1,210
Tualatin Valley Water District,
Callable 06/01/08 @ 100 (FSA)
5.000%, 06/01/12 1,000 991
Washington County Unified Sewer Agency,
Callable 10/01/06 @ 101 (FGIC)
5.200%, 10/01/09 1,300 1,331
Washington County Unified Sewer Agency,
Series 1 (AMBAC)
5.700%, 10/01/04 1,250 1,302
Washington County Unified Sewer Agency, Series 1,
Pre-refunded 10/01/04 @ 100 (AMBAC)
5.800%, 10/01/05 (A) 2,000 2,091
Washington County Unified Sewer Agency,
Series 1 (FGIC)
5.750%, 10/01/08 1,000 1,066
-------------
23,631
-------------
TOTAL REVENUE BONDS 74,248
-------------
CERTIFICATES OF PARTICIPATION -- 6.0%
Multnomah County, Callable 08/01/08 @ 101 (MLO)
4.750%, 08/01/11 2,200 2,143
Multnomah County, Juvenile Justice Project, Series A,
Pre-refunded 08/01/02 @ 101 (MLO)
5.700%, 08/01/03 (A) 675 696
Multnomah County, Health Facilities Lease, Series A,
Callable 07/01/03 @ 101 (MLO)
5.100%, 07/01/04 925 941
Oregon State Department of Administrative Services,
Series A, Callable 11/01/05 @ 101 (MBIA) (MLO)
5.000%, 11/01/06 1,350 1,373
Oregon State Department of Administrative Services,
Series A (AMBAC) (MLO)
5.500%, 05/01/07 1,000 1,043
Oregon State Department of Administrative Services,
Series A, Callable 05/01/09 @ 101 (AMBAC) (MLO)
5.000%, 05/01/14 1,000 970
Oregon State Department of Administrative Services,
Series B, Callable 11/01/07 @ 101 (AMBAC) (MLO)
5.000%, 11/01/11 840 839
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 57)
<PAGE>
STATEMENTS OF NET ASSETS SEPTEMBER 30, 2000
OREGON INTERMEDIATE TAX FREE FUND (CONCLUDED)
DESCRIPTION PAR (000)/SHARES VALUE (000)
--------------------------------------------------------------------------------
Oregon State Department of Administrative Services,
Series C, Callable 05/01/06 @ 101 (MBIA) (MLO)
5.750%, 05/01/07 $ 1,635 $ 1,725
-------------
9,730
-------------
TOTAL MUNICIPAL BONDS
(Cost $159,758) 160,682
-------------
RELATED PARTY MONEY MARKET FUND -- 0.1%
First American Tax Free Obligations Fund (C) 119,823 120
-------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $120) 120
-------------
TOTAL INVESTMENTS -- 98.4%
(Cost $159,878) 160,802
-------------
OTHER ASSETS AND LIABILITIES, NET -- 1.6% 2,625
-------------
NET ASSETS:
Portfolio Capital--Class A ($.0001 par value--
2 billion authorized) based on 339,095
outstanding shares 3,359
Portfolio Capital--Class Y ($.0001 par value--
2 billion authorized) based on 16,438,351
outstanding shares 160,016
Undistributed net investment income 80
Accumulated net realized loss on investments (952)
Net unrealized appreciation of investments 924
-------------
TOTAL NET ASSETS -- 100.0% $ 163,427
-------------
Net asset value and redemption price per share -- Class A $ 9.74
Maximum sales charge of 2.50% (D) 0.25
-------------
Offering price per share -- Class A $ 9.99
-------------
Net asset value, offering price, and redemption
price per share -- Class Y $ 9.74
-------------
(A) Pre-refunded issues are typically backed by U.S. Government obligations or
municipal bonds. These bonds mature at the call date and price indicated.
(B) The rate shown is the effective yield at the time of purchase.
(C) This money market fund is advised by U.S. Bank National Association who also
serves as Advisor for this Fund. See also the notes to the financial
statements.
(D) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 2.50%.
AG--Asset Guaranty
AMBAC--American Municipal Bond Assurance Corporation
FGIC--Financial Guaranty Insurance Corporation
FSA--Financial Security Assurance
MBIA--Municipal Bond Insurance Association
MGT--Morgan Guaranty Trust
MLO--Municipal Lease Obligation
SBA--Small Business Administration
SBG--School Board Guaranty
TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
MUNICIPAL BONDS -- 93.2%
ALASKA -- 1.1%
Alaska State Housing Finance Authority, Series A,
Callable 06/01/07 @ 102 (RB) (MBIA)
5.900%, 12/01/19 $ 1,000 $ 999
-------------
ARIZONA -- 3.8%
Casa Grande, Industrial Development Authority,
Aztec Pulp & Paper Products (RB) (AMT) (BA)
4.350%, 08/01/25 (A) 400 400
Maricopa County Industrial Development Authority,
Bay Club At Mesa Cove Project, Series A,
Callable 09/01/10 @ 103 (RB) (MBIA)
5.800%, 09/01/35 1,000 990
Maricopa County School District #4 (GO) (FSA)
5.250%, 07/01/04 2,000 2,047
-------------
3,437
-------------
CALIFORNIA -- 0.5%
California State, Callable 04/01/09 @ 101 (GO)
4.750%, 04/01/22 500 448
-------------
COLORADO -- 2.2%
La Junta Hospital, Arkansas Valley Medical Center
Project, Callable 04/01/09 @ 101 (RB)
6.000%, 04/01/19 1,000 895
Montrose County Health Care,
Pre-refunded 11/01/02 @ 102 (RB)
8.250%, 11/01/19 (B) 1,000 1,088
-------------
1,983
-------------
FLORIDA -- 2.6%
Clay County Development Authority, Cargill Project,
Callable 03/01/02 @ 102 (GO)
6.400%, 03/01/11 300 312
Florida State Board of Education, Series A,
Callable 06/01/09 @ 101 (GO) (FGIC)
4.500%, 06/01/23 2,450 2,032
-------------
2,344
-------------
GEORGIA -- 1.0%
Georgia Municipal Electric Authority Power,
Series BB (RB) (MBIA)
5.250%, 01/01/25 1,000 954
-------------
ILLINOIS -- 10.8%
Chicago, O' Hare Airport Project, Series A,
Callable 09/01/09 @ 101 (RB)
5.350%, 09/01/16 2,000 1,742
The accompanying notes are an integral part of the financial statements.
(58 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Illinois State Development Finance Authority,
Pollution Control, Series A,
Callable 07/01/06 @ 102 (RB)
7.375%, 07/01/21 $ 500 $ 537
Illinois State Educational Facilities Authority, Augustana
College, Callable 10/01/07 @ 100 (RB) (CLE)
5.875%, 10/01/17 500 506
Illinois State Educational Facilities Authority, Augustana
College, Callable 10/01/08 @ 100 (RB)
5.250%, 10/01/18 1,000 902
Illinois State Health Facilities Authority, Hospital
Sisters Services, Pre-refunded 06/07/02 @
102 (RB) (MBIA)
8.867%, 06/19/15 (B) (C) 1,000 1,100
Illinois State Toll Highway Authority, Series A (RB)
6.300%, 01/01/12 1,000 1,094
Illinois State University Improvements,
Pre-refunded 02/01/02 @ 100 (COP) (MLO)
7.550%, 02/01/16 (B) 110 114
7.600%, 02/01/17 (B) 115 119
7.700%, 02/01/20 (B) 100 104
7.700%, 02/01/22 (B) 100 104
Rock Island, Friendship Manor Project (RB)
7.000%, 06/01/06 1,100 1,089
Rock Island, Friendship Manor Project,
Callable 06/01/03 @ 102 (RB)
7.200%, 06/01/13 400 400
Rockford Multifamily Housing, Rivers Edge
Apartments, Series A,
Callable 01/20/08 @ 102 (RB) (GNMA) (AMT)
5.875%, 01/20/38 1,215 1,171
Southern Illinois University, Housing & Auxiliary,
Zero Coupon Bond, Series A (RB) (MBIA)
5.500%, 04/01/20 (D) 2,280 733
-------------
9,715
-------------
INDIANA -- 5.7%
Hammond Multiple School Building, Series B,
Escrowed to Maturity (RB) (MLO)
6.000%, 01/15/13 1,000 1,073
Indiana State Educational Facilities Authority,
St. Joseph's College Project,
Callable 10/01/09 @ 102 (RB)
7.000%, 10/01/29 1,000 1,020
Indiana State Municipal Power Agency,
Power Supply, Series B (RB) (MBIA)
6.000%, 01/01/11 1,000 1,077
6.000%, 01/01/12 1,000 1,075
Lake County Redevelopment Authority
(RB) (MBIA) (MLO)
6.500%, 02/01/16 800 854
-------------
5,099
-------------
IOWA -- 3.0%
Scott County, Ridgecrest Village Project, Series A,
Callable 11/15/10 @ 101 (RB)
7.250%, 11/15/26 2,750 2,674
-------------
TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
LOUISIANA -- 1.1%
New Orleans, Ad Valorem Property Tax (GO) (FGIC)
5.500%, 12/01/15 $ 1,000 $ 1,012
-------------
MASSACHUSETTS -- 2.3%
Massachusetts Bay Transportation Authority,
Series A, Callable 03/01/09 @ 101 (GO) (FGIC)
5.750%, 03/01/21 2,000 2,025
-------------
MICHIGAN -- 1.7%
Black River Public School Academy,
Callable 02/01/10 @ 100 (COP)
7.250%, 02/01/30 950 964
Lakeview Community School, Pre-refunded 05/01/07
@ 100 (GO) (FGIC)
5.750%, 05/01/16 (B) 220 233
5.750%, 05/01/16 (B) 280 296
-------------
1,493
-------------
MINNESOTA -- 18.4%
Austin Housing & Redevelopment Authority,
Gerard Project Health Care Facilities,
Callable 09/01/09 @ 102 (RB)
6.625%, 09/01/29 1,000 890
Brooklyn Center Health Care Facility,
Callable 12/01/03 @ 102 (RB)
7.600%, 12/01/18 400 359
Chaska Electric, Series A,
Callable 10/01/10 @ 100 (RB)
6.100%, 10/01/30 1,000 1,007
Cuyana Range Hospital District, Series A,
Callable 06/01/07 @ 102 (RB)
6.000%, 06/01/29 1,000 822
Eden Prairie Multifamily Housing,
Callable 01/20/08 @ 102 (RB) (GNMA)
5.500%, 01/20/18 500 482
Fergus Falls Health Care Facilities Authority,
Series A, Callable 11/01/04 @ 102 (RB)
7.000%, 11/01/19 500 477
Glencoe Hospital Board, Callable 08/01/04 @ 102 (RB)
6.750%, 04/01/16 485 456
Hopkins, Multifamily Housing Renaissance Project,
Callable 04/01/07 @102 (RB)
6.250%, 04/01/15 500 509
Minnesota Agriculture & Economic Development
Board, Evangelical Lutheran Project,
Callable 08/01/10 @ 102 (RB)
6.625%, 08/01/25 2,000 1,981
Minnesota Agriculture & Economic Development
Board, Health Care System, Series A,
Callable 11/15/10 @ 101 (RB)
6.375%, 11/15/29 3,000 3,042
New Hope Housing & Healthcare Facilities Authority,
Masonic Home North Ridge,
Callable 03/01/09 @ 102 (RB)
5.750%, 03/01/15 2,000 1,741
Rochester Health Care Facilities Authority, Series H,
Callable 03/01/01 @ 100 (RB)
7.479%, 11/15/15 (C) 1,000 1,051
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 59)
<PAGE>
STATEMENTS OF NET ASSETS SEPTEMBER 30, 2000
TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Roseville Housing Facilities Authority,
Pre-refunded 10/01/03 @ 102 (RB)
7.125%, 10/01/13 (B) $ 1,000 $ 1,084
St. Anthony Housing & Redevelopment Authority,
Callable 05/20/06 @ 102 (RB) (GNMA) (FHA)
6.250%, 11/20/25 1,000 1,014
St. Paul Housing & Redevelopment Authority,
Como Lake Project, Series B,
Callable 03/01/01 @ 100 (RB) (FHA)
7.500%, 03/01/26 (E) 500 489
Victoria Private School Facility, Holy Family
Catholic High School, Series A,
Callable 09/01/09 @ 100 (RB)
5.850%, 09/01/24 1,200 1,134
-------------
16,538
-------------
MISSOURI -- 1.1%
Kansas City Industrial Development Authority,
Kingswood Retirement Facility, Series A,
Callable 11/15/08 @ 102 (RB)
5.375%, 11/15/09 1,100 1,005
-------------
NEBRASKA -- 1.1%
Nebraska Public Power District, Series C,
Pre-refunded 07/01/04 @ 101 (RB)
4.750%, 01/01/07 (B) 1,000 1,014
-------------
NEW JERSEY -- 2.3%
New Jersey State, Series E (GO)
5.000%, 07/15/04 2,000 2,034
-------------
NEW MEXICO -- 0.8%
New Mexico State Finance Authority,
Mortgage-Backed Security, Series D (RB)
6.200%, 07/01/15 730 723
-------------
NEW YORK -- 2.1%
Long Island Power Authority, New York Electric,
Light & Power Improvements, Series A,
Callable 06/01/08 @ 101 (RB) (AMBAC)
5.250%, 12/01/26 1,000 933
New York City Public Improvements, Series C,
Callable 05/01/09 @ 101 (RB)
5.500%, 05/01/25 1,000 972
-------------
1,905
-------------
NORTH DAKOTA -- 4.3%
Mercer County Pollution Control, Antelope Valley
Station (RB) (AMBAC)
7.200%, 06/30/13 3,300 3,869
-------------
PUERTO RICO -- 0.6%
Puerto Rico Public Improvements,
Callable 07/01/10 @ 100 (GO) (MBIA)
5.750%, 07/01/26 500 512
-------------
TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
SOUTH DAKOTA -- 2.2%
South Dakota Economic Development Finance
Authority, DTS Inc. Project, Series A,
Callable 04/01/09 @ 102 (RB) (AMT)
5.500%, 04/01/19 $ 1,055 $ 954
South Dakota State Health & Educational Facilities
Authority, Callable 07/01/06 @ 102 (RB) (MBIA)
6.000%, 07/01/14 1,000 1,039
-------------
1,993
-------------
TENNESSEE -- 2.1%
Johnson City Health & Educational Facilities Authority,
Series A, Callable 07/01/12 @ 103 (RB)
7.500%, 07/01/33 2,000 1,918
-------------
TEXAS -- 13.2%
Dallas-Fort Worth International Airport Facility
Improvement Corporation, American Airlines,
Series C, Mandatory Put 11/01/07
@ 100 (RB) (AMT)
6.150%, 11/01/09 1,000 1,003
Dallas-Fort Worth International Airport Facility
Improvement Corporation, American Airlines,
Series C, Callable 11/01/09
@ 101 (RB) (AMT) (AGMT)
6.375%, 05/01/35 1,000 969
Fort Bend Independent School District, Pre-refunded
02/15/05 @ 100, (GO)
5.000%, 02/15/14 (B) 500 490
Harts Bluff School District (COP)
8.800%, 11/15/00 50 50
North Central Health Facility Development Corporation,
Northwest Senior Housing, Series A,
Callable 11/15/09 @ 102 (RB)
7.250%, 11/15/19 1,000 974
7.500%, 11/15/29 1,000 984
North Central Health Facility Development Corporation,
Presbyterian Healthcare Residence,
Pre-refunded 06/19/01 @ 104 (RB) (MBIA)
8.795%, 06/22/21 (B) (C) 1,000 1,068
Nueces County Housing Financial Corporation,
Dolphins Landing Apartments Project, Series A,
Callable 7/01/10 @ 102 (RB)
6.875%, 07/01/30 1,860 1,852
Spring Branch Independent School District,
Callable 02/01/10 @ 100 (GO)
5.750%, 02/01/25 2,400 2,405
Tarrant County Housing Financial Corporation
Multifamily Housing, Fair Oaks,
Callable 07/01/10 @ 102 (RB)
6.750%, 07/01/20 500 500
6.875%, 07/01/30 1,000 1,002
The accompanying notes are an integral part of the financial statements.
(60 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Texas Employment Community (COP) (MLO)
8.100%, 08/01/01 $ 25 $ 25
8.150%, 02/01/02 35 36
8.150%, 08/01/02 35 36
8.200%, 02/01/03 35 36
8.200%, 08/01/03 35 36
8.250%, 08/01/04 40 41
8.300%, 02/01/05 40 41
8.300%, 08/01/05 45 46
8.350%, 02/01/06 20 20
8.350%, 08/01/06 50 51
8.400%, 08/01/07 25 26
8.450%, 08/01/08 55 56
Texas Employment Community,
Emnora Lane Project (COP) (MLO)
7.850%, 05/01/04 10 10
7.850%, 11/01/04 25 25
7.900%, 05/01/05 25 25
7.900%, 11/01/05 25 25
8.000%, 11/01/06 30 30
8.050%, 05/01/07 20 20
-------------
11,882
-------------
UTAH -- 1.3%
Intermountain Power Agency, Utah Power Supply,
Series A, (RB) (AMBAC)
6.500%, 07/01/11 365 406
Intermountain Power Agency, Utah Power Supply,
Series A, Escrowed to Maturity
(RB) (AMBAC) 6.500%, 07/01/11 (B) 635 716
-------------
1,122
-------------
WASHINGTON -- 1.9%
Washington State Public Power Supply,
Nuclear Project #3, Series A,
Callable 07/01/07 @ 102 (RB) (FSA)
5.250%, 07/01/16 1,000 966
Washington State Public Power Supply,
Nuclear Project #3, Series B (RB)
7.125%, 07/01/16 600 700
-------------
1,666
-------------
WEST VIRGINIA -- 1.3%
West Virginia State, Series D (GO) (FGIC)
6.500%, 11/01/26 1,000 1,123
-------------
TAX FREE FUND (CONTINUED)
DESCRIPTION PAR (000)/SHARES VALUE (000)
--------------------------------------------------------------------------------
WISCONSIN -- 4.7%
Amery, Apple River Hospital Project,
Callable 06/01/08 @ 100 (RB)
5.700%, 06/01/13 $ 1,440 $ 1,373
Wisconsin State Health & Education Facilities
Authority, Aurora Health Care, Series A,
Callable 02/15/09 @ 101 (RB)
5.500%, 02/15/20 1,000 830
Wisconsin State Health & Education Facilities
Authority, Beloit Memorial Hospital,
Callable 07/01/03 @ 102 (RB)
5.800%, 07/01/09 555 538
Wisconsin State Health & Education Facilities
Authority, Franciscan Skemp
Medical Center (RB)
6.125%, 11/15/15 1,000 1,013
Wisconsin State Health & Education Facilities
Authority, Monroe Clinic,
Callable 02/15/09 @ 101 (RB)
5.375%, 02/15/22 500 423
-------------
4,177
-------------
TOTAL MUNICIPAL BONDS
(Cost $82,389) 83,664
-------------
CLOSED-END INVESTMENT COMPANIES -- 1.9%
Van Kampen Advanced Municipal Income Trust II 31,700 380
Van Kampen Municipal Income Trust 33,750 424
Van Kampen Municipal Opportunity Trust 33,700 476
Van Kampen Municipal Opportunity Trust II 33,000 398
-------------
TOTAL CLOSED-END INVESTMENT COMPANIES
(Cost $1,558) 1,678
-------------
RELATED PARTY MONEY MARKET FUND -- 1.2%
First American Tax Free Obligations Fund (F) 1,056,621 1,057
-------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $1,057) 1,057
-------------
TOTAL INVESTMENTS -- 96.3%
(Cost $85,004) 86,399
-------------
OTHER ASSETS AND LIABILITIES, NET -- 3.7% 3,331
-------------
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 61)
<PAGE>
STATEMENTS OF NET ASSETS SEPTEMBER 30, 2000
TAX FREE FUND (CONTINUED)
DESCRIPTION VALUE (000)
--------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital--Class A ($.0001 par value--
2 billion authorized) based on 2,580,111
outstanding shares $26,090
Portfolio Capital--Class C ($.0001 par value--
2 billion authorized) based on 13,287
outstanding shares 143
Portfolio Capital--Class Y ($.0001 par value--
2 billion authorized) based on 5,959,378
outstanding shares 62,991
Undistributed net investment income 60
Accumulated net realized loss on investments (949)
Net unrealized appreciation of investments 1,395
-------------
TOTAL NET ASSETS -- 100.0% $89,730
-------------
Net asset value and redemption price per share -- Class A $ 10.49
Maximum sales charge of 2.50% (G) 0.27
-------------
Offering price per share -- Class A $ 10.76
-------------
Net asset value and redemption price
per share -- Class C (H) $ 10.46
Maximum sales charge of 1.00% (I) 0.11
-------------
Offering price per share -- Class C $ 10.57
-------------
Net asset value, offering price, and redemption
price per share -- Class Y $ 10.49
-------------
(A) Variable Rate Security--the rate shown is the rate in effect as of September
30, 2000.
(B) Pre-refunded issues are typically backed by U.S. Government obligations.
These bonds mature at the call date and price indicated.
(C) Inverse Floating Rate Security-security pays interest at rates that increase
(decrease) in the same magnitude as, or in a multiple of, a decrease
(increase) in the market rate.
(D) The rate shown is the effective yield at the time of purchase.
(E) Security currently in partial default and is only 93.5% guaranteed. The
effective interest rate is 7.013%.
(F) 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.
(G) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 2.50%.
(H) Class C has a contingent deferred sales charge. For a description of a
possible redemption charge, see the notes to the financial statements.
(I) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%.
TAX FREE FUND (CONCLUDED)
--------------------------------------------------------------------------------
AGMT--Guaranty Agreement
AMBAC--American Municipal Bond Assurance Corporation
AMT--Alternative Minimum Tax. As of September 30, 2000, the aggregate market
value of the securities subject to the AMT was $4,497,000, which represents
5.0% of net assets.
BA--Bank of America
CLE--Connie Lee
COP--Certificates of Participation
FGIC--Financial Guaranty Insurance Corporation
FHA--Federal Housing Authority
FSA--Financial Security Assurance
GNMA--Government National Mortgage Association
GO--General Obligation
MBIA--Municipal Bond Insurance Association
MLO--Municipal Lease Obligation
RB--Revenue Bond
The accompanying notes are an integral part of the financial statements.
(62 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
(This page has been left blank intentionally.)
<PAGE>
STATEMENTS OF OPERATIONS for the year ended September 30, 2000, in thousands
<TABLE>
<CAPTION>
CALIFORNIA COLORADO
ARIZONA INTERMEDIATE CALIFORNIA INTERMEDIATE
TAX FREE FUND (1) TAX FREE FUND TAX FREE FUND (1) TAX FREE FUND
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $320 $2,215 $294 $3,174
Dividends -- -- -- --
---------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 320 2,215 294 3,174
=====================================================================================================================
EXPENSES:
Investment advisory fees 40 306 38 414
Less: Waiver of investment advisory fees (40) (100) (38) (181)
Less: Reimbursement of expenses by advisor (50) -- (49) --
Administrator fees 6 47 6 64
Transfer agent fees 38 31 38 85
Custodian fees 2 13 2 18
Directors' fees -- 1 -- 1
Registration fees 1 1 1 2
Professional fees -- 1 -- 1
Printing -- 3 -- 4
Distribution fees - Class A 12 4 7 11
Less: Waiver of distribution fees - Class A -- (4) -- (11)
Distribution fees - Class C -- -- -- --
Less: Waiver of distribution fees - Class C -- -- -- --
Other 3 2 2 5
---------------------------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 12 305 7 413
=====================================================================================================================
INVESTMENT INCOME - NET 308 1,910 287 2,761
=====================================================================================================================
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS - NET:
Net realized gain (loss) on investments (3) (122) (1) (648)
Net change in unrealized appreciation or
depreciation of investments 275 769 489 378
---------------------------------------------------------------------------------------------------------------------
NET GAIN (LOSS) ON INVESTMENTS 272 647 488 (270)
=====================================================================================================================
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $580 $2,557 $775 $2,491
=====================================================================================================================
</TABLE>
(1)Fund commenced operations on February 1, 2000.
The accompanying notes are an integral part of the financial statements.
(64 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
<TABLE>
<CAPTION>
MINNESOTA OREGON
COLORADO INTERMEDIATE INTERMEDIATE MINNESOTA INTERMEDIATE
TAX FREE FUND (1) TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 308 $ 21,560 $14,295 $8,053 $8,977 $4,467
-- -- -- 143 -- 23
-----------------------------------------------------------------------------------------------------------
308 21,560 14,295 8,196 8,977 4,490
===========================================================================================================
39 2,831 1,885 927 1,216 510
(39) (682) (469) (302) (310) (181)
(46) -- -- -- -- --
6 440 295 144 189 79
34 47 40 93 34 68
2 121 81 40 52 22
-- 7 4 2 3 1
2 13 9 6 7 3
-- 10 7 3 4 2
-- 27 18 9 11 5
11 22 31 239 8 73
-- (22) (31) -- (8) --
-- -- -- 19 -- 1
-- -- -- (7) -- --
2 17 15 4 8 1
-----------------------------------------------------------------------------------------------------------
11 2,831 1,885 1,177 1,214 584
===========================================================================================================
297 18,729 12,410 7,019 7,763 3,906
===========================================================================================================
4 (2,046) (581) (485) (952) (604)
321 2,552 611 (241) 1,116 847
-----------------------------------------------------------------------------------------------------------
325 506 30 (726) 164 243
===========================================================================================================
$ 622 $ 19,235 $12,440 $6,293 $7,927 $4,149
===========================================================================================================
</TABLE>
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 65)
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS in thousands
<TABLE>
<CAPTION>
CALIFORNIA CALIFORNIA COLORADO
ARIZONA INTERMEDIATE TAX FREE INTERMEDIATE
TAX FREE FUND (1) TAX FREE FUND FUND (1) TAX FREE FUND
-----------------------------------------------------------------------------------------------------------------------------------
2/1/00 10/1/99 10/1/98 2/1/00 10/1/99 10/1/98
to to to to to to
9/30/00 9/30/00 9/30/99 9/30/00 9/30/00 9/30/99
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Investment income - net $ 308 $ 1,910 $ 1,687 $ 287 $ 2,761 $ 2,756
Net realized gain (loss) on investments (3) (122) (63) (1) (648) (30)
Net change in unrealized appreciation or
depreciation of investments 275 769 (1,773) 489 378 (3,358)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations 580 2,557 (149) 775 2,491 (632)
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (246) (77) (17) (151) (210) (181)
Class C (1) -- -- -- -- --
Class Y (61) (1,833) (1,655) (133) (2,556) (2,569)
Net realized gain on investments:
Class A -- -- (1) -- -- (8)
Class C -- -- -- -- -- --
Class Y -- -- (102) -- (1) (110)
-----------------------------------------------------------------------------------------------------------------------------------
Total distributions (308) (1,910) (1,775) (284) (2,767) (2,868)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (2):
Class A:
Proceeds from sales 9,541 1,845 2,843 6,886 1,912 1,961
Reinvestment of distributions 239 60 8 139 114 117
Payments for redemptions (330) (1,642) (882) (1,235) (3,255) (1,426)
-----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class A transactions 9,450 263 1,969 5,790 (1,229) 652
-----------------------------------------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales 21 -- -- 34 -- --
Reinvestment of distributions -- -- -- -- -- --
Payments for redemptions -- -- -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from
Class C transactions 21 -- -- 34 -- --
-----------------------------------------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 4,405 9,128 12,285 6,580 7,571 10,468
Reinvestment of distributions 4 5 18 7 4 15
Payments for redemptions (1,792) (7,948) (6,194) (2,073) (11,669) (9,598)
-----------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from
Class Y transactions 2,617 1,185 6,109 4,514 (4,094) 885
-----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
capital share transactions 12,088 1,448 8,078 10,338 (5,323) 1,537
-----------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 12,360 2,095 6,154 10,829 (5,599) (1,963)
NET ASSETS AT BEGINNING OF PERIOD -- 43,511 37,357 -- 61,969 63,932
===================================================================================================================================
NET ASSETS AT END OF PERIOD (3) $12,360 $45,606 $43,511 $10,829 $56,370 $61,969
===================================================================================================================================
</TABLE>
(1)Fund commenced operations on February 1, 2000.
(2)See note 4 in Notes to Financial Statements for additional information.
(3)Includes undistributed (distributions in excess of) net investment income
(000) of $0 and $0 for Arizona Tax Free Fund, $19 and $19 for California
Intermediate Tax Free Fund, $3 and $0 for California Tax Free Fund, $4 and $9
for Colorado Intermediate Tax Free Fund, $7 and $0 for Colorado Tax Free
Fund, $0 and $91 for Intermediate Tax Free Fund, $29 and $51 for Minnesota
Intermediate Tax Free Fund, $250 and $171 for Minnesota Tax Free Fund, $80
and $22 for Oregon Intermediate Tax Free Fund, and $60 and $17 for Tax Free
Fund, at September 30, 2000, and September 30, 1999, respectively.
The accompanying notes are an integral part of the financial statements.
(66 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
<TABLE>
<CAPTION>
MINNESOTA OREGON
COLORADO INTERMEDIATE INTERMEDIATE MINNESOTA INTERMEDIATE
TAX FREE FUND (1) TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND
------------------------------------------------------------------------------------------------------------------------------------
2/1/00 10/1/99 10/1/98 10/1/99 10/1/98 10/1/99 10/1/98 10/1/99 10/1/98 10/1/99 10/1/98
to to to to to to to to to to to
9/30/00 9/30/00 9/30/99 9/30/00 9/30/99 9/30/00 9/30/99 9/30/00 9/30/99 9/30/00 9/30/99
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 297 $ 18,729 $ 20,306 $ 12,410 $ 13,585 7,019 $ 6,480 $ 7,763 $ 8,135 $ 3,906 $ 2,313
4 (2,046) (986) (581) 349 (485) (16) (952) 38 (604) (345)
321 2,552 (22,883) 611 (15,089) (241) (8,149) 1,116 (9,416) 847 (3,488)
------------------------------------------------------------------------------------------------------------------------------------
622 19,235 (3,563) 12,440 (1,155) 6,293 (1,685) 7,927 (1,243) 4,149 (1,520)
------------------------------------------------------------------------------------------------------------------------------------
(221) (416) (477) (571) (557) (4,933) (5,793) (147) (49) (1,486) (1,858)
(2) -- -- -- -- (89) (35) -- -- (4) (2)
(67) (18,458) (19,747) (11,861) (13,003) (1,918) (690) (7,557) (8,067) (2,373) (466)
-- -- (53) (15) (27) -- (630) (1) -- -- (450)
-- -- -- -- -- -- -- -- -- -- --
-- -- (2,305) (292) (844) -- (47) (35) (483) -- (6)
------------------------------------------------------------------------------------------------------------------------------------
(290) (18,874) (22,582) (12,739) (14,431) (6,940) (7,195) (7,740) (8,599) (3,863) (2,782)
------------------------------------------------------------------------------------------------------------------------------------
8,453 4,194 7,916 3,245 7,476 13,716 14,016 2,273 3,538 1,751 2,072
216 275 275 349 340 4,713 4,970 76 25 1,396 1,349
(852) (6,169) (6,033) (5,731) (2,825) (31,757) (21,970) (1,085) (1,468) (8,734) (7,577)
------------------------------------------------------------------------------------------------------------------------------------
7,817 (1,700) 2,158 (2,137) 4,991 (13,328) (2,984) 1,264 2,095 (5,587) (4,156)
------------------------------------------------------------------------------------------------------------------------------------
151 -- -- -- -- 788 1,821 -- -- 80 112
2 -- -- -- -- 54 20 -- -- 5 2
-- -- -- -- -- (479) (91) -- -- (55) (1)
------------------------------------------------------------------------------------------------------------------------------------
153 -- -- -- -- 363 1,750 -- -- 30 113
------------------------------------------------------------------------------------------------------------------------------------
5,297 56,759 82,876 39,739 41,117 31,588 15,055 23,880 31,317 58,159 21,777
2 1,614 2,114 344 397 465 322 446 471 137 47
(2,947) (125,938) (77,736) (75,230) (64,442) (8,703) (5,201) (42,766) (31,008) (15,162) (2,318)
------------------------------------------------------------------------------------------------------------------------------------
2,352 (67,565) 7,254 (35,147) (22,928) 23,350 10,176 (18,440) 780 43,134 19,506
------------------------------------------------------------------------------------------------------------------------------------
10,322 (69,265) 9,412 (37,284) (17,937) 10,385 8,942 (17,176) 2,875 37,577 15,463
------------------------------------------------------------------------------------------------------------------------------------
10,654 (68,904) (16,733) (37,583) (33,523) 9,738 62 (16,989) (6,967) 37,863 11,161
-- 453,177 469,910 294,405 327,928 127,154 127,092 180,416 187,383 51,867 40,706
====================================================================================================================================
$ 10,654 $384,273 $453,177 $256,822 $294,405 136,892 $127,154 $163,427 $180,416 $ 89,730 $ 51,867
====================================================================================================================================
</TABLE>
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 67)
<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>
ARIZONA TAX FREE FUND(1)
Class A
2000 $ 10.00 $ 0.36 $ 0.45 $ (0.36) $ --
Class C
2000 $ 10.00 $ 0.34 $ 0.44 $ (0.34) $ --
Class Y
2000 $ 10.00 $ 0.37 $ 0.45 $ (0.37) $ --
CALIFORNIA INTERMEDIATE
TAX FREE FUND
Class A
2000 $ 9.89 $ 0.43 $ 0.13 $ (0.43) $ --
1999 10.37 0.42 (0.46) (0.41) (0.03)
1998 10.04 0.43 0.33 (0.43) --
1997(2) 10.00 0.06 0.04 (0.06) --
Class Y
2000 $ 9.89 $ 0.43 $ 0.15 $ (0.43) $ --
1999 10.36 0.42 (0.45) (0.41) (0.03)
1998 10.03 0.43 0.33 (0.43) --
1997(2) 10.00 0.06 0.03 (0.06) --
CALIFORNIA TAX FREE
FUND(1)
Class A
2000 $ 10.00 $ 0.35 $ 0.66 $ (0.35) $ --
Class C
2000 $ 10.00 $ 0.32 $ 0.66 $ (0.32) $ --
Class Y
2000 $ 10.00 $ 0.37 $ 0.65 $ (0.36) $ --
COLORADO INTERMEDIATE TAX
FREE FUND
Class A
2000 $ 10.32 $ 0.48 $ (0.04) $ (0.48) $ --
1999 10.89 0.46 (0.55) (0.46) (0.02)
1998 10.61 0.47 0.30 (0.47) (0.02)
1997 10.42 0.48 0.24 (0.48) (0.05)
1996 10.51 0.49 (0.04) (0.49) (0.05)
Class Y
2000 $ 10.29 $ 0.48 $ (0.03) $ (0.48) $ --
1999 10.88 0.46 (0.57) (0.46) (0.02)
1998 10.61 0.47 0.29 (0.47) (0.02)
1997 10.42 0.48 0.24 (0.48) (0.05)
1996 10.51 0.49 (0.04) (0.49) (0.05)
COLORADO TAX FREE FUND(1)
Class A
2000 $ 10.00 $ 0.35 $ 0.42 $ (0.35) $ --
Class C
2000 $ 10.00 $ 0.34 $ 0.41 $ (0.34) $ --
Class Y
2000 $ 10.00 $ 0.37 $ 0.42 $ (0.36) $ --
INTERMEDIATE TAX FREE FUND
Class A
2000 $ 10.45 $ 0.48 $ 0.04 $ (0.49) $ --
1999 11.05 0.46 (0.55) (0.46) (0.05)
1998 10.84 0.47 0.27 (0.47) (0.06)
1997 10.66 0.47 0.24 (0.47) (0.06)
1996 10.72 0.46 0.01 (0.46) (0.07)
Class Y
2000 $ 10.43 $ 0.48 $ 0.04 $ (0.49) $ --
1999 11.03 0.46 (0.55) (0.46) (0.05)
1998 10.82 0.47 0.27 (0.47) (0.06)
1997 10.65 0.47 0.23 (0.47) (0.06)
1996 10.72 0.46 -- (0.46) (0.07)
------------------------------------------------------------------------------------
</TABLE>
+Returns are for the period indicated and have not been annualized.
(A)Excluding sales charges.
(1)Commenced operations on February 1, 2000. All ratios for the period have been
annualized.
(2)Commenced operations on August 8, 1997. All ratios for the period have been
annualized.
The accompanying notes are an integral part of the financial statements.
(68 FIRST AMERICAN FUNDS ANNUAL 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>
$ 10.45 8.21%+ $ 9,668 0.25% 5.31% 1.80% 3.76% 27%
$ 10.44 7.88%+ $ 22 0.65% 4.95% 2.72% 2.88% 27%
$ 10.45 8.36%+ $ 2,670 0.00% 5.53% 1.53% 4.00% 27%
$ 10.02 5.84% $ 2,344 0.70% 4.35% 1.18% 3.87% 23%
9.89 (0.40) 2,042 0.70 4.19 1.17 3.72 9
10.37 7.80 82 0.70 4.22 1.21 3.71 22
10.04 1.02+ 1 0.69 4.48 1.36 3.81 3
$ 10.04 6.05% $ 43,262 0.70% 4.36% 0.93% 4.13% 23%
9.89 (0.30) 41,469 0.70 4.11 0.92 3.89 9
10.36 7.80 37,275 0.70 4.27 0.96 4.01 22
10.03 0.92+ 33,287 0.69 4.14 1.11 3.72 3
$ 10.66 10.23%+ $ 6,029 0.25% 5.20% 1.85% 3.60% 12%
$ 10.66 9.95%+ $ 34 0.65% 5.12% 2.25% 3.52% 12%
$ 10.66 10.38%+ $ 4,766 0.00% 5.42% 1.59% 3.83% 12%
$ 10.28 4.40% $ 3,485 0.70% 4.66% 1.25% 4.11% 42%
10.32 (0.88) 4,733 0.70 4.32 1.15 3.87 33
10.89 7.43 4,301 0.70 4.43 1.17 3.96 19
10.61 7.11 4,187 0.70 4.55 1.16 4.09 11
10.42 4.39 2,861 0.70 4.69 1.18 4.21 20
$ 10.26 4.51% $ 52,885 0.70% 4.66% 1.00% 4.36% 42%
10.29 (1.07) 57,236 0.70 4.31 0.90 4.11 33
10.88 7.33 59,631 0.70 4.43 0.92 4.21 19
10.61 7.11 54,378 0.70 4.55 0.91 4.34 11
10.42 4.39 48,927 0.70 4.69 0.93 4.46 20
$ 10.42 7.80%+ $ 8,068 0.25% 5.28% 1.80% 3.73% 36%
$ 10.41 7.52%+ $ 156 0.65% 4.92% 2.58% 2.99% 36%
$ 10.43 8.05%+ $ 2,430 0.00% 5.47% 1.53% 3.94% 36%
$ 10.48 5.10% $ 8,994 0.70% 4.61% 1.12% 4.19% 29%
10.45 (0.78) 10,713 0.70 4.31 1.12 3.89 23
11.05 7.04 9,196 0.70 4.31 1.11 3.90 27
10.84 6.84 3,849 0.67 4.41 1.18 3.90 66
10.66 4.45 2,618 0.66 4.35 1.17 3.84 53
$ 10.46 5.11% $375,279 0.70% 4.62% 0.87% 4.45% 29%
10.43 (0.79) 442,464 0.70 4.31 0.87 4.14 23
11.03 7.05 460,714 0.70 4.32 0.86 4.16 27
10.82 6.75 431,000 0.67 4.40 0.93 4.14 66
10.65 4.35 66,994 0.66 4.35 0.92 4.09 53
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 69)
<PAGE>
FINANCIAL HIGHLIGHTS For a share outstanding throughout the periods ended
September 30, unless otherwise indicated.
<TABLE>
<CAPTION>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS
VALUE NET GAINS OR FROM NET DISTRIBUTIONS
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM
OF PERIOD INCOME INVESTMENTS INCOME CAPITAL GAINS
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
MINNESOTA INTERMEDIATE TAX FREE FUND
Class A
2000 $ 9.79 $ 0.45 $ 0.02 $ (0.45) $ (0.01)
1999 10.29 0.43 (0.47) (0.43) (0.03)
1998 10.09 0.43 0.24 (0.43) (0.04)
1997 9.91 0.44 0.21 (0.44) (0.03)
1996 9.92 0.45 0.02 (0.45) (0.03)
Class Y
2000 $ 9.76 $ 0.45 $ 0.01 $ (0.45) $ (0.01)
1999 10.26 0.43 (0.47) (0.43) (0.03)
1998 10.06 0.43 0.24 (0.43) (0.04)
1997 9.91 0.44 0.18 (0.44) (0.03)
1996 9.92 0.45 0.02 (0.45) (0.03)
MINNESOTA TAX FREE FUND (B)
Class A
2000 $ 10.70 $ 0.55 $ (0.06) $ (0.55) $ --
1999 11.46 0.55 (0.69) (0.56) (0.06)
1998 11.15 0.57 0.36 (0.56) (0.06)
1997 10.89 0.57 0.31 (0.57) (0.05)
1996 10.81 0.59 0.07 (0.58) --
Class C
2000 $ 10.69 $ 0.53 $ (0.09) $ (0.51) $ --
1999(1) 11.38 0.37 (0.71) (0.35) --
Class Y
2000 $ 10.69 $ 0.58 $ (0.07) $ (0.57) $ --
1999 11.45 0.58 (0.69) (0.59) (0.06)
1998 11.14 0.60 0.36 (0.59) (0.06)
1997(2) 11.16 0.10 (0.02) (0.10) --
OREGON INTERMEDIATE TAX FREE FUND
Class A
2000 $ 9.72 $ 0.43 $ 0.02 $ (0.43) $ --
1999(3) 10.23 0.29 (0.51) (0.29) --
Class Y
2000 $ 9.72 $ 0.43 $ 0.02 $ (0.43) $ --
1999 10.24 0.43 (0.49) (0.43) (0.03)
1998 10.05 0.45 0.21 (0.45) (0.02)
1997(4) 10.00 0.07 0.05 (0.07) --
TAX FREE FUND (B)
Class A
2000 $ 10.54 $ 0.53 $ (0.05) $ (0.53) $ --
1999 11.53 0.55 (0.86) (0.55) (0.13)
1998 11.21 0.55 0.36 (0.54) (0.05)
1997 10.81 0.54 0.42 (0.54) (0.02)
1996 10.69 0.56 0.12 (0.56) --
Class C
2000 $ 10.52 $ 0.50 $ (0.07) $ (0.49) $ --
1999(1) 11.34 0.35 (0.82) (0.35) --
Class Y
2000 $ 10.54 $ 0.56 $ (0.06) $ (0.55) $ --
1999 11.54 0.57 (0.86) (0.58) (0.13)
1998(5) 11.31 0.10 0.22 (0.09) --
------------------------------------------------------------------------------------
</TABLE>
+ Returns are for the period indicated and have not been annualized.
(A)Excluding sales charges.
(B)The financial highlights for the Minnesota Tax Free Fund and Tax Free Fund as
set forth herein include the historical financial highlights of the Piper
Minnesota Tax-Exempt Fund Class A shares and Class Y shares, and the Piper
National Tax-Exempt Fund Class A shares, respectively. The assets of the
Piper Minnesota Tax-Exempt Fund and Piper National Tax-Exempt Fund were
acquired by Minnesota Tax Free Fund and Tax Free Fund, respectively on July
31, 1998. In connection with this acquisition, (i) Class A shares of the
Piper Minnesota Tax-Exempt Fund and Piper National Tax-Exempt Fund were
exchanged for Class A shares of the Minnesota Tax Free Fund and Tax Free
Fund, respectively, (ii) Class Y shares of the Piper Minnesota Tax-Exempt
Fund were exchanged for Class Y shares of the Minnesota Tax Free Fund. On
July 31, 1998 the Fund's advisor changed from Piper Capital Management
Incorporated to U.S. Bank National Association.
(1)Class C shares have been offered since February 1, 1999. All ratios for the
period have been annualized.
(2)Class Y shares have been offered since August 1, 1997. All ratios for the
period have been annualized.
(3)Class A shares have been offered since February 1, 1999. All ratios for the
period have been annualized.
(4)Commenced operations on August 8, 1997. All ratios for the period have been
annualized.
(5)Class Y shares have been offered since July 31, 1998. All ratios for the
period have been annualized.
The accompanying notes are an integral part of the financial statements.
(70 FIRST AMERICAN FUNDS ANNUAL 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>
$ 9.80 4.94% $ 12,469 0.70% 4.59% 1.12% 4.17% 18%
9.79 (0.43) 14,629 0.70 4.30 1.12 3.88 12
10.29 6.80 10,330 0.70 4.30 1.11 3.89 24
10.09 6.72 7,453 0.70 4.49 1.15 4.04 20
9.91 4.80 3,916 0.70 4.52 1.18 4.04 19
$ 9.76 5.04% $244,353 0.70% 4.59% 0.87% 4.42% 18%
9.76 (0.44) 279,776 0.70 4.28 0.87 4.11 12
10.26 6.82 317,598 0.70 4.30 0.86 4.14 24
10.06 6.42 297,122 0.70 4.47 0.90 4.27 20
9.91 4.80 93,394 0.70 4.53 0.93 4.30 19
$ 10.64 4.75% $ 93,995 0.95% 5.22% 1.17% 5.00% 34%
10.70 (1.31) 108,116 0.95 4.98 1.17 4.76 15
11.46 8.58 118,937 0.95 5.05 1.01 4.99 16
11.15 8.32 125,659 0.95 5.17 1.01 5.11 17
10.89 6.24 125,677 0.90 5.38 0.99 5.29 35
$ 10.62 4.25% $ 2,037 1.35% 4.83% 1.77% 4.41% 34%
10.69 (3.03)+ 1,682 1.35 4.70 1.87 4.18 15
$ 10.63 5.00% $ 40,860 0.70% 5.49% 0.93% 5.26% 34%
10.69 (1.07) 17,356 0.70 5.26 0.87 5.09 15
11.45 8.83 8,155 0.78 5.79 0.82 5.75 16
11.14 0.72+ 9,010 0.75 5.73 0.75 5.73 17
$ 9.74 4.79% $ 3,303 0.70% 4.47% 1.13% 4.04% 18%
9.72 (2.22)+ 2,005 0.70 4.37 1.12 3.95 13
$ 9.74 4.78% $160,124 0.70% 4.47% 0.88% 4.29% 18%
9.72 (0.66) 178,411 0.70 4.30 0.87 4.13 13
10.24 6.66 187,383 0.70 4.43 0.87 4.26 20
10.05 1.17+ 182,069 0.70 4.55 1.09 4.16 4
$ 10.49 4.75% $ 27,061 0.95% 5.18% 1.19% 4.94% 15%
10.54 (2.81) 32,893 1.00 4.97 1.23 4.74 21
11.53 8.41 40,351 1.10 4.84 1.16 4.78 7
11.21 9.09 49,638 1.11 4.91 1.17 4.85 28
10.81 6.42 45,935 1.03 5.15 1.13 5.05 43
$ 10.46 4.26% $ 139 1.35% 4.80% 1.79% 4.36% 15%
10.52 (4.23)+ 110 1.35 4.54 1.93 3.96 21
$ 10.49 5.00% $ 62,530 0.70% 5.47% 0.95% 5.22% 15%
10.54 (2.66) 18,864 0.71 5.26 1.01 4.96 21
11.54 2.83+ 355 0.85 5.61 0.91 5.55 7
------------------------------------------------------------------------------------------------------------------------
</TABLE>
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 71)
<PAGE>
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2000
1 > ORGANIZATION
The First American 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, Oregon Intermediate Tax Free Fund,
and Tax Free Fund (collectively, the "Funds") are mutual funds offered by
First American Investment Funds, Inc. ("FAIF"). The First American
Corporate Bond Fund, Limited Term Income Fund, Intermediate Term Income
Fund, Fixed Income Fund, Strategic Income Fund, Balanced Fund, Real Estate
Securities Fund, Equity Income Fund, Equity Index Fund, Large Cap Value
Fund, Large Cap Growth Fund, Mid Cap Value Fund, Small Cap Value Fund,
Small Cap Growth Fund, International Index Fund, International Fund, Health
Sciences Fund, Technology Fund, Emerging Markets Fund, and Mid Cap Growth
Fund are also mutual funds offered by FAIF but are not included in this
report. FAIF is registered under the Investment Company Act of 1940, as
amended, as an open-end investment management company. FAIF's articles of
incorporation permit the board of directors to create additional funds in
the future.
These Funds offer Class A and Class Y shares. Arizona Tax Free Fund,
California Tax Free Fund, Colorado Tax Free Fund, Minnesota Tax Free Fund
and Tax Free Fund also offer Class C shares. Class A shares are sold with a
front-end sales charge. Class C shares are sold with a front-end sales
charge and are 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 and each class has exclusive voting rights on any matters
relating to that class' servicing or distribution arrangements.
2 > SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies followed by the Funds are as follows:
SECURITY VALUATION - Security valuations for the Funds' investments are
furnished by one or more independent pricing services that have been
approved by the Board of Directors. Debt obligations exceeding 60 days to
maturity are valued by an independent pricing service. The pricing service
may employ methodologies that utilize actual market transactions,
broker-dealer supplied valuations, or other electronic data processing
techniques. These techniques generally consider such factors as yields or
prices of bonds of comparable quality, type of issue, coupon, maturity,
ratings and general market conditions. When market quotations are not
readily available, securities are valued at fair value as determined in
good faith by procedures established and approved by the board of
directors. Debt obligations with 60 days or less remaining until maturity
may be valued at their amortized cost. Investments in closed-end mutual
funds which are traded on a national securities exchange (or reported on
the NASDAQ national market system) are stated at the last quoted sales
price if readily available for such securities on each business day.
SECURITY TRANSACTIONS AND INVESTMENT INCOME - The Funds record security
transactions on the trade date of the security purchase or sale. Interest
income, including amortization of bond premium and discount, is recorded on
the accrual basis. Security gains and losses are determined on the basis of
identified cost, which is the same basis used for Federal income tax
purposes.
DISTRIBUTIONS TO SHAREHOLDERS - The Funds declare and pay income dividends
monthly. Any net realized capital gains on sales of securities for a Fund
are distributed to shareholders at least annually.
FEDERAL TAXES - It is each Fund's intention to continue to qualify as a
regulated investment company and distribute all of its taxable income.
Accordingly, no provision for Federal income taxes is required. For Federal
income tax purposes, required distributions related to realized gains from
security transactions are computed as of September 30th and October 31st.
(72 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
Net investment income and net realized gains or losses may differ for
financial statement and tax purposes because of temporary or permanent
book-to-tax differences. These differences are primarily due to losses
deferred due to wash sales.
The character of distributions made during the year from net investment
income or net realized gains may differ from its ultimate characterization
for federal income tax purposes. In addition, due to the timing of dividend
distributions, the fiscal year in which the amounts are distributed may
differ from the year that the income or realized gains (losses) were
recorded by the Fund. To the extent these differences are permanent,
adjustments are made to the appropriate equity accounts in the period that
the difference arises.
On the Statement of Net Assets the following adjustments were made (000):
ACCUMULATED UNDISTRIBUTED ADDITIONAL
NET REALIZED NET INVESTMENT PAID IN
FUND GAIN (LOSS) INCOME CAPITAL
--------------------------------------------------------------------------
Intermediate Tax Free Fund $ -- $54 $ (54)
Oregon Intermediate Tax Free Fund 1 (1) --
--------------------------------------------------------------------------
As of September 30, 2000, the following funds have capital loss
carryforwards (000):
AMOUNT EXPIRATION DATE
---------------------------------------------------------------------------
California Intermediate Tax Free $ 81 2008
Colorado Intermediate Tax Free 75 2008
Intermediate Tax Free 1,405 2008
Minnesota Intermediate Tax Free 239 2008
Minnesota Tax Free 248 2008
Oregon Intermediate Tax Free 98 2008
Tax Free 370 2008
---------------------------------------------------------------------------
Arizona Tax Free, California Intermediate Tax Free, California Tax Free,
Colorado Intermediate Tax Free, Intermediate Tax Free, Minnesota
Intermediate Tax Free, Minnesota Tax Free, Oregon Intermediate Tax Free,
and Tax Free Fund incurred losses in the amount of $3,000, $104,000,
$1,000, $643,000, $1,627,000, $338,000, $254,000, $854,000, and $579,000
from November 1, 1999 to September 30, 2000 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, 2001.
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS - Delivery and payment for
securities that have been purchased by a Fund on a forward commitment or
when-issued basis can take place up to a month or more after the
transaction date. During this period, such securities are subject to market
fluctuations and the portfolio maintains, in a segregated account with its
custodian, assets with a market value equal to or greater than the amount
of its purchase commitments. The purchase of securities on a when-issued or
forward commitment basis may increase the volatility of a Fund's net asset
value if the Fund makes such investments while remaining substantially
fully invested. At September 30, 2000 the Minnesota Tax Free Fund had
outstanding when-issued commitments of $1,000,000.
INVERSE FLOATERS - As part of their investment strategy, the Funds may
invest in certain securities for which the potential income return is
inversely related to changes in a floating interest rate ("inverse
floaters"). In general, income on inverse floaters will decrease when
short-term interest rates increase and increase when short-term interest
rates decrease. Investments in inverse floaters may be characterized as
derivative securities and may subject the fund to the risks of reduced or
eliminated interest payments and losses of invested principal. In addition,
inverse floaters have the effect of providing investment leverage and, as a
result, the market value of such securities will generally be more volatile
than that of fixed rate, tax-exempt securities. To the extent the Funds
invest in inverse floaters, the net asset value of the Funds' shares may be
more volatile than if the Funds did not invest in such securities. At
September 30, 2000, the Minnesota Tax Free Fund and Tax Free Fund had
investments in inverse floaters with a value of $8,592,425 and $1,100,000,
respectively, which represent 6.3% and 1.2%, respectively, of each fund's
net assets.
EXPENSES - Expenses that are directly related to one of the Funds are
charged directly to that Fund. Other operating expenses are allocated to
the Funds on the basis of relative net assets. Class specific expenses,
such as the 12b-1 fees, are borne by that class. Income, other expenses,
and realized and unrealized gains and losses of a Fund are allocated to the
respective class on the basis of the relative net assets each day.
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS - The
preparation of financial statements, in conformity with accounting
principles generally accepted in the United States, 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.
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 73)
<PAGE>
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2000
3 > FEES AND EXPENSES
ADVISORY FEES - Pursuant to an investment advisory agreement (the
"Agreement"), First American Asset Management (the "Advisor"), a division
of U.S. Bank National Association ("U.S. Bank"), manages each Fund's assets
and furnishes related office facilities, equipment, research and personnel.
The Agreement requires each Fund to pay the Advisor a monthly fee based
upon average daily net assets. The fee for each of the Funds is equal to an
annual rate of 0.70% of the average daily net assets. The advisor intends
to waive fees during the current fiscal year so that total fund operating
expenses do not exceed expense limitations described in the prospectuses.
Fee waivers may be discontinued at any time.
The Funds may invest in First American Funds, Inc. ("FAF"), subject to
certain limitations. The terms of such transactions are identical to those
of non-related entities except that, to avoid duplicative investment
advisory fees, the Advisor reimburses each FAIF Fund an amount equal to the
investment advisory fee earned by FAF related to such investments.
ADMINISTRATION FEES - SEI Investments Mutual Fund Services ("SIMFS")
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 SIMFS and provided
sub-administration services for the Funds from October 1, 1999 through
December 31, 1999. For these services SIMFS compensated U.S. Bank, as
sub-administrator, monthly at an annual rate of up to 0.05% of each Fund's
average 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, SIMFS paid U.S. Bank $2,646,000 in
aggregate for this three month period for the First American Family of
Funds.
Effective January 1, 2000, SIMFS 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 SIMFS monthly at an annual rate
equal to 0.05% of aggregate average daily net assets of FAIF. In addition,
SIMFS 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 fee of $50,000 per Fund (the oldest 38 Funds are
excluded). U.S. Bank paid SIMFS $8,501,000 in aggregate from January 1,
2000 through September 30, 2000 for the First American Family of Funds. For
the Funds included in this annual report the amounts paid to U.S. Bank and
SIMFS for their respective periods were as follows (000):
U.S. BANK SIMFS
---------------------------------------------------------------------------
Arizona Tax Free Fund $ -- $ 4
California Intermediate Tax Free Fund 4 17
California Tax Free Fund -- 8
Colorado Intermediate Tax Free Fund 5 28
Colorado Tax Free Fund -- 4
Intermediate Tax Free Fund 36 191
Minnesota Intermediate Tax Free Fund 24 128
Minnesota Tax Free Fund 11 65
Oregon Intermediate Tax Free Fund 15 83
Tax Free Fund 5 38
---------------------------------------------------------------------------
CUSTODIAN FEES - Through a separate contractual agreement, U.S. Bank serves
as the Funds' custodian. The fee for each Fund is equal to an annual rate
of 0.03% of average daily net assets.
DISTRIBUTION FEES - SEI Investments Distribution Co. ("SIDCO") serves as
distributor of the Funds. Under the distribution plan, each of the Funds
pay SIDCO a monthly distribution fee at an annual rate of 0.25% of each
Fund's average daily net assets of the Class A shares and 1.00% of the
Class C shares, respectively, which may be used by SIDCO to provide
compensation for sales support and distribution activities. All Class A
distribution fees are currently being waived in California Intermediate Tax
Free, Colorado Intermediate Tax Free, Intermediate Tax Free, Minnesota
Intermediate Tax Free and Oregon Intermediate Tax Free Funds. For Class C,
the distributor is currently waiving 0.35% of average daily net assets for
the Minnesota Tax Free and Tax Free Funds. No distribution fees are paid by
Class Y shares. Under the agreement, SIDCO paid U.S. Bank and its
affiliates the
(74 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
following amounts for the Funds included in this annual report, for the
year ended September 30, 2000 (000):
U.S. BANCORP U.S. BANK
U.S. BANK PIPER JAFFRAY TRUST
---------------------------------------------------------------------------
Arizona Tax Free Fund $ -- $ 8 $ --
California Tax Free Fund 1 2 --
Minnesota Tax Free Fund 6 220 --
Tax Free Fund 1 67 --
---------------------------------------------------------------------------
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 $9,862,000
in aggregate for the year ended September 30, 2000 for the First American
Family of Funds. For the year ended September 30, 2000, fees paid to U.S.
Bank for the funds included in this report were as follows (000):
---------------------------------------------------------------------------
Arizona Tax Free Fund $ 21
California Intermediate Tax Free Fund 25
California Tax Free Fund 20
Colorado Intermediate Tax Free Fund 18
Colorado Tax Free Fund 21
Intermediate Tax Free Fund 27
Minnesota Intermediate Tax Free Fund 24
Minnesota Tax Free Fund 67
Oregon Intermediate Tax Free Fund 21
Tax Free Fund 43
---------------------------------------------------------------------------
OTHER FEES - In addition to the investment advisory and management fees,
custodian fees, distribution fees, administrator and transfer agent fees,
each Fund is responsible for paying most other operating expenses including
organization costs, fees and expenses of outside directors, registration
fees, printing shareholder reports, legal, auditing, insurance and other
miscellaneous expenses.
For the year ended September 30, 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") of 1.00% is
imposed on redemptions made in the Class C shares for the first 18 months.
The CDSC is imposed on the value of the purchased shares or the value at
the time of redemption, whichever is less.
For the year ended September 30, 2000, sales charges retained by SIDCO for
distributing the First American Family of Funds' shares were approximately
$239,000.
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 75)
<PAGE>
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2000
4 > CAPITAL SHARE TRANSACTIONS
Capital share transactions for the Funds were as follows (000):
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA COLORADO
TAX FREE INTERMEDIATE CALIFORNIA INTERMEDIATE
FUND(1) TAX FREE FUND TAX FREE FUND(1) TAX FREE FUND
---------------------------------------------------------------------------------------------------------------------------------
2/1/00 10/1/99 10/1/98 2/1/00 10/1/99 10/1/98
to to to to to to
9/30/00 9/30/00 9/30/99 9/30/00 9/30/00 9/30/99
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Class A:
Shares issued 934 189 283 670 188 187
Shares issued in lieu of cash distributions 23 6 1 13 11 11
Shares redeemed (32) (167) (86) (117) (319) (134)
---------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS A TRANSACTIONS 925 28 198 566 (120) 64
=================================================================================================================================
Class C:
Shares issued 2 -- -- 3 -- --
Shares issued in lieu of cash distributions -- -- -- -- -- --
Shares redeemed -- -- -- -- -- --
---------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS C TRANSACTIONS 2 -- -- 3 -- --
=================================================================================================================================
Class Y:
Shares issued 431 924 1,202 651 745 982
Shares issued in lieu of cash distributions -- 1 2 1 -- 1
Shares redeemed (176) (807) (610) (205) (1,150) (904)
---------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS Y TRANSACTIONS 255 118 594 447 (405) 79
=================================================================================================================================
NET INCREASE (DECREASE) IN CAPITAL SHARES 1,182 146 792 1,016 (525) 143
=================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
COLORADO MINNESOTA
TAX FREE INTERMEDIATE INTERMEDIATE MINNESOTA
FUND(1) TAX FREE FUND TAX FREE FUND TAX FREE FUND
---------------------------------------------------------------------------------------------------------------------------------
2/1/00 10/1/99 10/1/98 10/1/99 10/1/98 10/1/99 10/1/98
to to to to to to to
9/30/00 9/30/00 9/30/99 9/30/00 9/30/99 9/30/00 9/30/99
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Class A:
Shares issued 837 404 727 334 736 1,301 1,245
Shares issued in lieu of cash distributions 21 27 25 36 34 449 445
Shares redeemed (83) (598) (559) (592) (279) (3,017) (1,971)
---------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS A TRANSACTIONS 775 (167) 193 (222) 491 (1,267) (281)
=================================================================================================================================
Class C:
Shares issued 15 -- -- -- -- 75 163
Shares issued in lieu of cash distributions -- -- -- -- -- 5 2
Shares redeemed -- -- -- -- -- (45) (8)
---------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS C TRANSACTIONS 15 -- -- -- -- 35 157
=================================================================================================================================
Class Y:
Shares issued 524 5,497 7,662 4,120 4,072 3,002 1,351
Shares issued in lieu of cash distributions -- 157 196 36 40 44 29
Shares redeemed (291) (12,200) (7,207) (7,800) (6,406) (825) (469)
---------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS Y TRANSACTIONS 233 (6,546) 651 (3,644) (2,294) 2,221 911
=================================================================================================================================
NET INCREASE (DECREASE) IN CAPITAL SHARES 1,023 (6,713) 844 (3,866) (1,803) 989 787
=================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
OREGON
INTERMEDIATE
TAX FREE FUND TAX FREE FUND
-----------------------------------------------------------------------------------------------
10/1/99 10/1/98 10/1/99 10/1/98
to to to to
9/30/00 9/30/99 9/30/00 9/30/99
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Shares issued 237 354 169 184
Shares issued in lieu of cash distributions 8 2 135 121
Shares redeemed (112) (150) (846) (683)
-----------------------------------------------------------------------------------------------
TOTAL CLASS A TRANSACTIONS 133 206 (542) (378)
===============================================================================================
Class C:
Shares issued -- -- 8 10
Shares issued in lieu of cash distributions -- -- -- --
Shares redeemed -- -- (5) --
-----------------------------------------------------------------------------------------------
TOTAL CLASS C TRANSACTIONS -- -- 3 10
===============================================================================================
Class Y:
Shares issued 2,481 3,112 5,630 1,965
Shares issued in lieu of cash distributions 46 47 13 4
Shares redeemed (4,444) (3,108) (1,474) (210)
-----------------------------------------------------------------------------------------------
TOTAL CLASS Y TRANSACTIONS (1,917) 51 4,169 1,759
===============================================================================================
NET INCREASE (DECREASE) IN CAPITAL SHARES (1,784) 257 3,630 1,391
===============================================================================================
</TABLE>
(1)Fund commenced operations on February 1, 2000.
(76 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
5 > INVESTMENT SECURITY TRANSACTIONS
During the year ended September 30, 2000, purchases of securities and
proceeds from sales of securities, other than temporary investments in
short-term securities, were as follows (000):
INVESTMENT SECURITIES
----------------------
PURCHASES SALES
---------------------------------------------------------------------------
Arizona Tax Free Fund $ 14,216 $ 2,401
California Intermediate Tax Free Fund 11,819 9,450
California Tax Free Fund 10,805 953
Colorado Intermediate Tax Free Fund 23,732 29,512
Colorado Tax Free Fund 12,553 2,950
Intermediate Tax Free Fund 114,464 184,045
Minnesota Intermediate Tax Free Fund 45,250 85,072
Minnesota Tax Free Fund 52,862 40,478
Oregon Intermediate Tax Free Fund 30,173 46,927
Tax Free Fund 44,140 9,684
---------------------------------------------------------------------------
At September 30, 2000, the total cost of securities for Federal income tax
purposes was the same as amounts reported for financial reporting purposes.
The aggregate gross unrealized appreciation and depreciation for securities
held by the Funds at September 30, 2000, is as follows (000):
AGGREGATE GROSS AGGREGATE GROSS
APPRECIATION (DEPRECIATION) NET
---------------------------------------------------------------------------
Arizona Tax Free Fund $ 282 $ (7) $ 275
California Intermediate Tax Free Fund 1,312 (47) 1,265
California Tax Free Fund 492 (3) 489
Colorado Intermediate Tax Free Fund 1,602 (323) 1,279
Colorado Tax Free Fund 325 (4) 321
Intermediate Tax Free Fund 6,127 (3,757) 2,370
Minnesota Intermediate Tax
Free Fund 4,722 (2,440) 2,281
Minnesota Tax Free Fund 3,927 (2,195) 1,732
Oregon Intermediate Tax Free Fund 2,373 (1,449) 924
Tax Free Fund 2,538 (1,143) 1,395
---------------------------------------------------------------------------
6 > CONCENTRATION OF CREDIT RISK
The Arizona Tax Free Fund, California Intermediate Tax Free, California Tax
Free, Colorado Intermediate Tax Free, Colorado Tax Free Fund, Minnesota
Intermediate Tax Free Fund, Minnesota Tax Free Fund and Oregon Intermediate
Tax Free Fund invest in debt instruments of municipal issuers in specific
states. Although these Funds monitor investment concentration, the issuers'
ability to meet their obligations may be affected by economic developments
in a specific state or region.
The rating of long-term securities as a percentage of total value of
investments at September 30, 2000, is as follows:
STANDARD & CALIFORNIA COLORADO
POOR'S/ ARIZONA INTERMEDIATE CALIFORNIA INTERMEDIATE COLORADO
MOODY'S TAX FREE TAX FREE TAX FREE TAX FREE TAX FREE
RATINGS: FUND FUND FUND FUND FUND
---------------------------------------------------------------------------
AAA/Aaa 50% 61% 52% 64% 65%
AA/Aa 27 16 16 13 23
A/A 12 12 13 12 5
BBB/Baa 1 10 17 2 3
D -- -- -- -- --
NR 10 1 2 9 4
----------------------------------------------------------------
100% 100% 100% 100% 100%
---------------------------------------------------------------------------
STANDARD & MINNESOTA OREGON
POOR'S/ INTERMEDIATE INTERMEDIATE MINNESOTA INTERMEDIATE
MOODY'S TAX FREE TAX FREE TAX FREE TAX FREE TAX FREE
RATINGS: FUND FUND FUND FUND FUND
---------------------------------------------------------------------------
AAA/Aaa 57% 65% 27% 52% 41%
AA/Aa 22 20 25 33 8
A/A 14 5 20 12 16
BBB/Baa 2 3 4 1 14
D -- -- 1 -- 1
NR 5 7 23 2 20
----------------------------------------------------------------
100% 100% 100% 100% 100%
---------------------------------------------------------------------------
Securities rated by only one agency are shown in that category. Securities
rated by both agencies are shown with their lowest rating.
7 > LINE OF CREDIT
Pursuant to a commitment letter dated September 7, 1999, Citibank N.A.
provides a revolving line of credit to FAIF 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 borrowed. There is a
commitment fee on the unused portion of the line of credit. The commitment
fee is calculated at 8.0 basis points on the unutilized portion of the
facility. Fees are accrued daily and paid quarterly to Citibank N.A. There
were no borrowings under the line of credit during the year ended September
30, 2000. Effective October 11, 2000, the line of credit was discontinued.
8 > PENDING ACQUISITION
On October 4, 2000, U.S. Bancorp, the parent company of the Funds'
investment advisor, announced that it had entered into an agreement to be
acquired by Firstar Corporation. It is anticipated that this acquisition
will be completed in the first quarter of 2001, subject to regulatory
approval, the approval of U.S. Bancorp shareholders and the satisfaction of
customary closing conditions.
FIRST AMERICAN FUNDS ANNUAL REPORT 2000 77)
<PAGE>
NOTICE TO SHAREHOLDERS SEPTEMBER 30, 2000 (UNAUDITED)
THE INFORMATION SET FORTH BELOW IS FOR EACH FUND'S FISCAL YEAR AS REQUIRED
BY FEDERAL LAWS. MOST SHAREHOLDERS, HOWEVER, MUST REPORT DISTRIBUTIONS ON A
CALENDAR YEAR BASIS FOR INCOME TAX PURPOSES, WHICH MAY INCLUDE
DISTRIBUTIONS FOR PORTIONS OF TWO FISCAL YEARS OF A FUND. ACCORDINGLY, THE
INFORMATION NEEDED FOR INCOME TAX PURPOSES WILL BE SENT IN EARLY 2001 ON
FORM 1099. PLEASE CONSULT YOUR TAX ADVISOR FOR PROPER TREATMENT OF THIS
INFORMATION.
Dear First American Shareholders:
For the fiscal year ended September 30, 2000, each Fund has designated long
term capital gains, ordinary income and exempt income with regard to
distributions paid during the year as follows:
<TABLE>
<CAPTION>
LONG TERM ORDINARY
CAPITAL GAINS INCOME TAX TOTAL
DISTRIBUTIONS DISTRIBUTIONS EXEMPT DISTRIBUTIONS
FUND (TAX BASIS) (TAX BASIS) INTEREST (TAX BASIS)
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Arizona Tax Free Fund 0% 2% 98% 100%
California Intermediate Tax Free Fu 0 0 100 100
California Tax Free Fund 0 4 96 100
Colorado Intermediate Tax Free Fund 0 1 99 100
Colorado Tax Free Fund 0 2 98 100
Intermediate Tax Free Fund 0 0 100 100
Minnesota Intermediate Tax Free Fun 2 1 97 100
Minnesota Tax Free Fund 0 0 100 100
Oregon Intermediate Tax Free Fund 1 0 99 100
Tax Free Fund 0 1 99 100
--------------------------------------------------------------------------------------
</TABLE>
(78 FIRST AMERICAN FUNDS ANNUAL REPORT 2000
<PAGE>
(This page has been left blank intentionally.)
<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.
<PAGE>
[LOGO] FIRST AMERICAN FUNDS(R)
THE POWER OF DISCIPLINED INVESTING(R)
DIRECT FUND CORRESPONDENCE TO:
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 and
are not intended to be a forecast of future events, a guarantee of future
results, nor investment advice. Further, there is no assurance that
certain securities will remain in or out of each fund's portfolio.
For a prospectus or fund profile containing more information on First
American Funds, including investment policies, fees and expenses, please
contact your investment professional, call Investor Services at
1-800-637-2548, or visit us on the web at www.firstamericanfunds.com.
Please read the prospectus or profile carefully before you invest or send
money.
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
SEI IS NOT AN AFFILIATE OF U.S. BANK
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
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FIRST AMERICAN FUNDS Bulk Rate
c/o 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.
3110-00 11/2000
AR-TAXFREE-00
